Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 18 of 18

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Q171.
What is the purpose of Whole Life insurance policies?

a.

To provide living benefits

b.

To provide coverage for a specified period

c.

To spread the cost of insurance cover over a longer period

d.

To provide coverage for the entire lifetime of the insured

Discuss
Answer: (d).To provide coverage for the entire lifetime of the insured Explanation:Whole life insurance is designed to provide coverage for the entire lifetime of the insured.
Q172.
What is the primary purpose of an endowment life insurance policy?

a.

To provide living benefits

b.

To provide coverage for a specified period

c.

To spread the cost of insurance cover over a longer period

d.

To provide life insurance protection primarily and living benefits secondarily

Discuss
Answer: (d).To provide life insurance protection primarily and living benefits secondarily Explanation:An endowment life insurance policy is designed primarily to provide life insurance protection and secondarily to provide a living benefit.
Q173.
How is Group Insurance defined?

a.

An insurance plan that covers only individuals

b.

An insurance plan that covers a specific profession

c.

An insurance plan that covers a group of people, such as employees or members of societies

d.

An insurance plan that covers only the elderly

Discuss
Answer: (c).An insurance plan that covers a group of people, such as employees or members of societies Explanation:Group insurance is an insurance plan that covers a group of people, such as members of societies, employees of an organization, or professionals in a common group.
Q174.
How is the Gratuity Insurance Plan described?

a.

A plan providing living benefits

b.

A plan providing only death cover

c.

A deposit administration type of gratuity liability offered by life insurance companies to employers

d.

A plan providing coverage for a specified period

Discuss
Answer: (c).A deposit administration type of gratuity liability offered by life insurance companies to employers Explanation:Gratuity Insurance Plan can be described as a deposit administration type of gratuity liability offered by life insurance companies to employers.
Q175.
What is the characteristic of Ulip plans?

a.

They provide coverage only if the insured dies within a specified period

b.

They provide coverage for the entire lifetime of the insured

c.

They allocate premiums to different funds chosen by customers, with gains reflected in the Net Asset Value (NAV)

d.

They spread the cost of insurance cover over a longer period

Discuss
Answer: (c).They allocate premiums to different funds chosen by customers, with gains reflected in the Net Asset Value (NAV) Explanation:Ulip plans allocate premiums to different funds being Equity, Income, or Balanced Funds depending on the choices of customers, and the gains in the value of these assets are reflected in the Net Asset Value (NAV) of the units.
Q176.
How are Company Fixed Deposits different from Bank Fixed Deposits?

a.

Company Fixed Deposits have higher interest rates

b.

Company Fixed Deposits have lower risk exposure

c.

Company Fixed Deposits have a shorter lock-in period

d.

Company Fixed Deposits have a higher risk exposure and offer higher returns

Discuss
Answer: (d).Company Fixed Deposits have a higher risk exposure and offer higher returns Explanation:Companies with higher risk exposures try to reward investors for the extra risks they are taking by investing in the company, explaining why Company Fixed Deposits offer higher returns.
Q177.
___________ is the ratio of the risk premium to the variability of returns (standard deviation of returns).

a.

Jensen's Alpha Ratio

b.

Treynor Ratio

c.

Sharpe's Ratio

d.

Fama's Net Selectivity Ratio

Discuss
Answer: (c).Sharpe's Ratio Explanation:Sharpe's Ratio is a measure developed by William F. Sharpe to evaluate the performance of an investment by adjusting for its risk. It is calculated as the ratio of the excess return (the return over the risk-free rate) to the standard deviation of the investment's returns. The formula is: Sharpeβ€²sRatio=(Rpβˆ’Rf) / Οƒp, Where: Rp​ is the return of the portfolio or investment, Rf is the risk-free rate, Οƒp​ is the standard deviation of the portfolio or investment's returns. The ratio provides a way to assess whether the return of an investment is sufficient for the level of risk taken. A higher Sharpe's Ratio indicates better risk-adjusted performance.
Q178.
Which of the following is / are specifically excluded from the purview of the AIF Regulations?

a.

Family Trusts

b.

ESOP Trusts

c.

Employee Welfare Trusts

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:All of the mentioned entities (Family Trusts, ESOP Trusts, and Employee Welfare Trusts) are specifically excluded from the purview of the AIF (Alternative Investment Fund) Regulations.
Q179.
Given below are some versions of traditional whole life insurance plans. Identify the odd one out.

a.

Non-Participating Whole life

b.

Econometric Whole life

c.

Universal Life

d.

Limited Payment Whole Life

Discuss
Answer: (c).Universal Life Explanation:Universal life insurance is a different category than traditional whole life insurance. It is a type of permanent life insurance that combines a death benefit with a savings component. Policyholders have flexibility in premium payments and death benefit amounts.
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