Chapter Name : chap-21 Mutual Fund Concepts

1 An entry load increases the NAV but reduces the number of units in hand, while an exit-
load decreases the NAV and reduces the value of the units for sale.
True
False

2 A Fund house operates, so it has to cover costs and charges for the whole process of
investment when one enters or leave the scheme. The charge is known as load. What is the
standard entry load that the fund houses are charges?
1% entry load
2% entry load
2.25% entry load
Rs.5,000

3 Managers keep track of investments and manages the money. The money paid to the
fund managers and others for managing the funds are known as –
Corpus
Entry load
Exit load
Expenses

4 What is redemption with respect to mutual fund units?

Redemption is the purchase of units by the holder
Redemption is the sale of unit by the holder of the units
It is issue by the fund house
None of above

5 If the investor prefers regular flow of income, which option he should opt for?
Dividend option
Growth option
Dividend reinvestment option
All of above

6 There are two types of schemes. Some are having fixed tenure and others don’t have
fixed tenure. Which schemes are for the fixed tenure?
Open-ended schemes
Close-ended schemes
None of above

7 In the open-ended scheme investor can subscribe throughout the year.

 True
False

8 In the open ended funds number of unit holder remain same throughout the tenure of
the fund.
True
False

9 What is the meaning of the corpus?

The pool of money that is available to the scheme is called the corpus
The cost that the fund house charges for the operations
The market value of the units
None of above

10 If the investor wants to purchase the units other than the initial offer, at which value he
can purchase it?
At par value
Net Asset Value + front-end load
Net Asset Value – front-end load
At discount value

11 Mutual funds collects savings of investors and invest in different securities. Against
that they issue _____________ to investors.
Share
Debenture
Unit
Bond

12 What is the Net Asset Value OR How Net Asset Value can be calculated?
Number of unit holders
Net Assets of the specific scheme
Net Assets divided by number of units issued
None of above

13 Why the NAV is variable and keeps changing on a day to day basis?
Because the number of unit holder changes everyday
Because shares/securities are bought and sold daily and the market value of holdings change
daily
Because profit of mutual funds changes daily
All of above

14 A rise in NAV is __________ and a fall shows __________ in the value of units.
Profitable, profit
 Profitable, loss
Loss, profit
Loss, loss

15 Which method is the most commonly used for the valuation of the assets?
Historical cost
Market value
Book value
Amortized cost

16 As the mutual funds buy and sell securities and make gain. They distribute the gain to
the investor as dividend. What will be the effect of the dividend distribution on the NAV
of the fund?
NAV drops
NAV increase
No change in NAV
None of above

Chapter 22

1 If the investor is looking for the maximum of return on the investment and can bear the
risks of eroding it temporarily in that pursuit, he should invest in –
Directly in the equity shares
Equity funds
Debt funds
All of above

2 There are some schemes that give benefit under Income Tax also. In which equity
scheme, benefit of income-tax is also available?
Index fund
fundsExchange-traded
Equity-linked Saving Scheme
Sector fund

3 What is the lock-in period to get the tax benefit from the mutual fund scheme?
1 year
3 years
5 years
No lock in period
4 In which fund, NAV will move in the same direction to the index and almost with the
same percentage. For example if index rises by 10%, NAV also increase with almost 10%
and if it falls by 10%, NAV also reduced by almost same percentage.
Equity-linked Saving Scheme
Debt fund
Index fund
Exchange-traded fund

5 Index fund always gives the same return as the market movement. But sometimes the
return varies. This variation is due to various costs. Which type of costs it could be?
Brokerage cost
Marketing expenses
Management expenses
All of the above

6 What is a sector fund?

A sector fund is one whose portfolio is built around a particular sector
A sector fund is one whose portfolio is built of Index securities
A sector fund is one whose portfolio is built of other funds
A sector fund is one whose portfolio is built of debt instruments

7 From the following which fund is more risky?

Debt fund
Equity diversified fund
Sector fund
All of above

8 Which schemes are not listed on the stock exchanges?

open-ended schemes
close-ended schemes
equity schemes
none of the above

9 Which schemes are with the fixed maturity period?

Open-ended scheme
Close-ended scheme
none of the above

10 Which funds can give you excellent dividend, when the markets are rising?
Equity fund
Debt fund
Sector fund
Fund of fund
11 What is the object of the debt fund?
To generate higher return with some inherent risk
To generate steady return with high risk
To generate steady return with keeping the capital safe
None of above

12 Which types of risks are involved in the debt fund?

Default risk
Interest rate risk
Liquidity risk
All of above

13 The relationship between interest rate and bond prices are inverse. And it goes against
a debt fund. If the interest rate rises, bond prices will fall and NAV will also fall.
True
False

14 Where the investments are made in case of Income Funds?

Corporate papers
Government securities
Both “A” and “B” above
Equity shares

15 In which plan, the debt instrument in which the house has invested will hold till the
maturity of the instrument?
Gilt fund
Floating rate fund
Short-term fund
Serial plan

16 In which fund, investment is made in an instrument which is very safe and its tenure is
from a day to a year?
Guilt fund
Liquid fund
Serial plan
Flexible fund?

17 In which fund investment can be made in equity or debt or both without limitations as
to the extent that may be invested?
Equity fund
Debt fund
Flexible fund
 Index fund

18 Which fund works on the fundamental of moderate risk and moderate return?
Equity fund
Debt fund
Balanced fund
Sector fund

19 Balanced funds are funds that invest both in shares and fixed income securities in the
proportion indicated in their offer document. A conservative fund will prefer which ratio
of equity-debt?
70:30
60:40
40:60
50:50

20 What are advantages of balanced mutual funds?

Able to switch over from one combination to other depending on the market
Diversity in true sense with portfolio containing top stocks and bonds for a blend of growth
and safety
Hassle free management
All of above

21 Where the money market funds invest their corpus?

Treasure bills
Certificate of deposits, commercial paper
Inter-bank call money
All of above

22 In which type of fund, the corpus is invested in the fund of other mutual funds?
Money market fund
Gold fund
Fund of fund
Dynamic fund

23 Which fund works on the fundamental of high-risk, high-return?

Money market fund
Dynamic fund
Gold fund
Flexible fund

Chapter 23
1 How the advantage of flexibility is available by investing in mutual fund?
Fund houses are investing in different securities
Fund houses have a variety of funds like income, growth, balanced etc. and investor can
switch from one to another
Fund houses give option to withdraw from the scheme at any time without any exit load
All of above

2 What is the minimum amount of investment, which the investor needs to invest in
mutual fund?
Rs.2,000
Rs.5,000
Rs.10,000
Rs.20,000

3 As the mutual funds invest in different type of securities. They have ____________
degree of liquidity.
Low
Medium
High
None of above

4 Holding mutual funds unit means holding shares of the single company so that the
investor can have voting power.
True
False

5 How the advantage of diversification is available to the investor of mutual fund?

Mutual funds invest in different securities, debentures etc., which is not possible for small
investor
Mutual funds gives the option of buy and sell at any point of time
Mutual funds gives the option of dividends reinvestment
Mutual funds invest in the single security so that it can have the voting power

Chapter 24

1 From the following instruments, in which instrument the return is fixed?

Equity shares
Fixed deposits
Mutual funds
Antiques

2 Mutual funds invest their corpus in different securities and the portfolio is diversified.
So the return from mutual funds is –
 Fixed
Varying
none of the above

3 Investment in the mutual funds is free of cost. They don’t charge anything for the
management of the investment of the holder.
True
False

4 What are the disadvantages of investing in mutual funds?

Uncertainty of return
Costs of entry and exit
Lack of control on own investment
All of above

Chapter 25

1 Investors are investing in mutual funds for the purpose of gain. When investor can make
money from investment in mutual fund?
Selling investment at the same price of purchase
Selling investment at a price which is higher than the purchase price
Selling investment at a price which is lower than the purchase price
None of above

2 Mr. B has purchased the shares of ABC Company at Rs.45 per share. When can Mr. B
sell the shares, so that he can have some gain?
Sell the shares when the price is Rs.45.
Sell the shares when the price falls below Rs.45.
Sell the shares when the price rise and go above Rs.45.
None of above

3 When the return is higher for investments?

When the purchase prices are same as sale price
When the purchase prices are lower by very less amount
When the purchase prices are higher
When the purchase prices are very much lower than the selling price

4 There are different types of funds advantageous in different market condition. When the
investor should invest in sector fund?
When there is upturn in sector performance
When there is downturn in sector performance
When there is a consistence performance of a sector
 None of above

5 To have better returns, Investor should invest for –

Short term
Long term
none of above

6 Mutual funds have different funds and schemes. Some fund offers high return with high
risk while some funds offers steady but fix return with low risk. Which funds return is
relatively steady?
Equity fund
Debt fund
Sector fund
Fund of fund

7 While taking investment decision in mutual fund one should consider the market
conditions as well as the rate of interest. Which is the best time to invest in debt fund?
When a rise is anticipated in interest rate
When a cut is anticipated in interest rate
When there is no change in interest rate
None of above

8 A new fund is cheaper as it is priced at NAV of Rs.10 while existing schemes have an
NAV more than Rs.10. This is the thought of normal investor and its correct.
True
False

Chapter 26

1 Which factor would help you in determining the fund in which you should invest?
Scheme
Objective of the fund
Performance
All of above

2 Mr. A is a risk taker. And need high return. Which type of scheme will be better for his
investment?
Equity fund
Debt fund
Money market fund
Fund of fund
3 Which document will tell the investor about the latest performance and portfolio?
The offer document
Fund fact-sheet
Prospectus of the fund
None of above

4 If one of the securities from the portfolio falls, the NAV of the scheme will also goes
down. That is because of –
Diversification
Inadequate diversification
Adequate diversification
None of above

5 As per the SEBI, in equity fund, how much a fund can invest in single stock?
Not more than 2%
Not more than 5%
Not more than 10%
Not more than 15%

Chapter 27

1 From where the agent can buy mutual funds?

New Fund offerings
Mutual funds, intermediaries
Internet, stock exchange
All of above

2 Sometimes fund houses make New Fund Offerings. Who can purchase from new fund
offerings?
Any person
Companies
HUFs
Association of persons

3 What is the benefit of buying from mutual fund?

No entry load
Discount in NAV available
Can buy for specific period
None of above

4 Which types of agents are there, to sell mutual funds?

 Individuals, Certified financial planners
Bank
Stock brokers
All of above

5 Who can guide and help investor to decide, in which fund and in which scheme the
investor should invest in?
Fund house
Agents
Stock exchanges
Banks

Chapter 28

1 If the investor wants to have growth of investment, in which plan he should invest?
Dividend plan
Growth plan
Dividend reinvestment plan
None of above

2 Mr. X, a retired person, in the need of regular income. Which plan is better for him?
Dividend plan
Growth plan
Dividend reinvestment plan
All of above

3 What is the main investment for the portfolio of dividend plan?

Equity shares
Fixed interest securities
Foreign exchange
Deposits

4 How the dividend reinvestment fund operates?

The dividend is distributed to the investor
The dividends are declared but not paid to the investor. It is invested in the plan and
additional units are given for that
The dividends are declared but not paid and no additional units are given. The load amount
is adjusted against the dividend
none of above

5 How the systematic withdrawal plan works?

 It is an automatic investment at some pre-specified period
It is a periodic redemption of unit of pre-specified amount periodically.
It is just like redemption of units
It is like selling of units in the stock exchange

6 In which plan, the amount of dividend is added to the corpus and fixed amount is paid to
the investor monthly/quarterly?
Dividend plan
Growth plan
Dividend reinvestment plan
Systematic withdrawal plan

Chapter 29

1 It is always not possible for investor to purchase at bottom or sell at top. There is a way
to cushion again volatility and keep the price down is to invest regularly at given
periodicities. This type of plan is called -
Systematic Investment Plan
Systematic Withdrawable Plan
Systematic Transfer Plan
None of above

2 Systematic investment plan gives the benefit of –

High average purchase price
Low average purchase price
All the purchases at even price
Sale at higher price

3 SIP refers to the practice of investing a constant amount regularly at a span of a month.
So when the market goes up, the money invested will translated in –
Few number of units of mutual fund
More number of units of mutual fund
The market will not affect the number of units the investor get
None of above

4 In which plan investor can withdraw his investment at constant amount periodically?
Systematic Investment Plan
Systematic Withdrawable Plan
Systematic Transfer Plan
All of above

5 In which plan investor can transfer his investment from one scheme to other
periodically?
 Systematic Investment Plan
Systematic Withdrawal Plan
Systematic Transfer Plan
None of above

6 At present, which periodical options for investment in SIP, is available to investor?

Monthly and Semi-annually
Monthly and Yearly
Monthly and Quarterly
Quarterly and Semi-annually

7 Investor believing in long-term, will surely get the gain because, during the fall in the
market he accumulates to get more units, which brings down the average cost price.
True
False

Chapter 30

1 How the investor can keep track on invested funds?

Through fund house
Through newspapers and magazines
Through expert opinion
All of above

2 Fund houses send which documents, which shows the details of the schemes relevant to
investor?
Annual Report
Half-yearly Report
Fact-sheet/Newsletter
All of above

3 On which part of the annual report of mutual fund, the investor should focus?
Director’s note
Auditor’s note
Scheme’s performance and portfolio composition
Growth of mutual fund

4 From where the daily NAV is available to the investor of mutual fund?
Financial newspapers
Website of AMFI, from websites of mutual funds
Daily email from the fund house
All of above
5 On which factor, the frequency of the track on the mutual fund, should depend?
Then amount of investment
The term of investment (i.e. for short term or long term the amount is invested)
The time of investment (i.e. in the bullish or bearish trend the amount is invested)
The fund house in which the investment has made

6 With whom, the investor can compare the performance of the scheme he has invested
in?
With other comparative schemes
With market
Past performance
All of above

7 How well the scheme is doing is also depends upon the market condition. If the scheme
has given a return of 5% when the market has fallen 30%, then the scheme has is not
going too badly.
True
False

8 What should be track, after investing in mutual fund?

Performance
Portfolio quality, portfolio diversification
Expenses
All of above

Chapter 31

1 In which circumstances investor wants to sell of his investments?

He had achieved the return he wanted
He want to cut the losses
He is in need of cash
Any of the above circumstances

2 There are two types of investor, Aggressive investor and Long-term investor. An
investor invests, when he sees rise in a certain industry and he exist, when he makes
money. This type of investor called –
Aggressive investor
Long-term investor
none of above
3 What should one look out for when studying the quality of the fund management?
Consistence underperformance
Risky course
Takeover of fund, tax planning
All of above

Chapter 32

1 There are two types of capital gains, short-term capital gain and long-term capital gain.
Which is short-term capital gain in case of mutual funds?
Investment for less than 3 months
Investment for less than 6 months
Investment for less than a year
Investment for less than 3 years

2 Mr. A has held units of mutual fund for one and half year. He sold it at some gain.
Which capital gain it is?
Short-term capital gain
Long-term capital gain
none of above

3 Mr. A held equity funds for 9 months and had gain of Rs.5,000. At which rate his gain is
taxable?
10%
20%
30%
At personal income tax rate which could be 10% or 20% or 30%

4 Mr. P held equity funds for one and half year and had gain go Rs.7,000. At which rate is
gain is taxable?
Exempt
10%
20%
At personal income tax rate

5 Mr. Q held debt fund for more than one year and had long term capital gain. At which
rate his long term capital gain is chargeable?
Flat 10%
20% with indexation
Either “A” or “B” above
None of above

6 Dividends are tax free in the hands of –

 Long term investor
Short term investor
Any investor
Fund house

7 How the deduction under section 80C is available by investing in mutual fund?
Investment upto Rs.20,000 with other eligible investments
Investment upto Rs.50,000 with other eligible investments
Investment upto Rs.1,00,000 with other eligible investments
Investment upto Rs.1,50,000 with other eligible investments

Chapter 33

1 Which other services the fund houses offers, to make friendly environment with
investors?
Information over the phone, triggers and alerts
Cheque book facility, new point of purchase
Online transactions
All of above

2 In case of Investor Friendly Services, normally triggers are based on what?

Value
Time limits
Either “A” or “B” above
None of above

3 Triggers gives the facility to the investor for –

Entry in mutual fund
Exit from the fund
Choosing the dividend payout or reinvest option
Choosing the income or growth option

4 On activating the trigger, the fund house –

Gives additional units to the holder
Redeem units and send a cheque
Reinvest the gain of the holder
None of above

Chapter 34
1 Whom should an investor approach first in case of complaint?
Fund house
Regulator
Investor association
Consumer forum

2 Can a complaint be filled online with SEBI?

Yes
No

Chapter 35

1 What is an Antique?
The thing having historic interest
The thing which has been declared by the government to be an antique
Both “A” and “B” above
None of above

2 Which kind of things can be considered as Antiques?

Sculptures & Manuscripts
Ancient Coins
Paintings & Objects
All of the above

3 With whom a person who does own an antique is required to register?

The Museum Authority of India
The Archeological Society
The Art Gallery of India
The Department of Art & Culture

4 Every person who does own an antique is required to register with a registering officer
of the Archaeological Society of that area within –
7 days from possession
10 days from possession
15 days from possession
1 months from possession

5 Antiques are freely available in Indian markets. Which are the best areas when antiques
are easily available?
Chor Bazar in Mumbai
Mullick Market in Kolkata
Burma Bazzar in Chennai
 All of the above areas

6 The investment per antique can be very high. Whether the antiques have got any tax
advantages too?
Yes
No

7 What are the base rules that one should follow when buying an antique?
Buy the best you can afford
Buy Signed objects and don’t buy damaged items
Look for the items with provenance
All the above

Chapter 36

1 Art is extremely big business today. What is the general submission about the art for
making investment in it?
Art should be purchased for its Aesthetic Value only
Art should be purchased from investment angle
Art should be purchased only by museums only
None of the above

2 In March 1989 at Sotheby’s Auction, at which price Husain’s “Death of Hashmi” was
purchased by Mr. Arun Kumar Mehta?
Rs. 1.50 lakhs
Rs. 5.50 lakhs
Rs. 7.50 lakhs
Rs. 10 lakhs

3 On September 17, 1990, who purchased M. F. Husain’s self portrait at Rs. 12.50 lakhs,
the highest price until that paid in India for Art?
Mr. Ratan Tata
Mr. Anil Ambani
Mrs. Parmeshwar Godrej
Mr. Rahul Bajaj

4 In which year, The Economic Times began an Art Index aggregating prices for works by
51 top Artists?
1989
1999
2004
 2008

5 What makes Art a worthwhile investment apart from its emerging popularity?
It is tremendous hedge against inflation
Indian art is extremely under-priced
Rate of appreciation in some cases as high as 50 to 100 %
All of the above reasons

6 What are the factors that should be kept in mind while looking at an artist to buy art
from him/her?
Content
Continuity
Consistency
All of the above factors which can be called as 3 Cs

7 Art should not be sold very quickly. The investment needs time to mature. What is an
average time for holding a painting to get better value?
1 to 3 years
3 to 5 years
3 to 10 years
10 to 25 years

Chapter 37

1 Mussolini, in 1930s offered Mumbai’s Asiatic Library __________ for one of Dante’s
illustrated books.
$ 500,000
$ 1,000,000
$ 2,000,000
$ 5,000,000

2 How does one start looking for the right book to invest in?How does one start looking
for the right book to invest in?

3 How does one start looking for the right book to invest in?How does one start looking
for the right book to invest in?
Is it the first addition of the book?
Is the book is originally signed by the Author?
How old the book is? – it is very important
All of the above
4 Books as investments are steadily gaining in popularity. In the Western World, what is
the growth rate of prices of books for collection and investment?
Approx 10 %
Approx 20 %
Approx 30 %
Approx 50 %

Chapter 37

1 A recent study reveals that old watches and clocks being purchased in India are sold at
profits up to _____ % in Americ
50 %
100 %
200 %
400 %

2 As per comparison of prices in June 2008, if a “Favre Leube (pre 1930 edition)” watch is
available in India for Rs. 550,000/-, what will be its cost in foreign country like America?
$ 30,000
$ 70,000
$ 54,700
$ 50,000

3 How does one start looking for the right watch or clock to invest in?
One should acquire a book on clocks and watches for their verity
Identify someone who can repair these old gems
To visit more and more shops and browsing for watches and clocks
All of the above

Chapter 39

1 What is an approximate ratio of using diamond rings for engagement ceremonies in

Western Europe now a day?
33 %
53 %
73 %
83 %

2 What is the ratio of using of diamonds in jewellery and use of diamonds for industrial
purpose like laser, drill etc.?
 40% for Jewellery and 60 % for Industrial
20% for Jewellery and 80 % for Industrial
30% for Jewellery and 70 % for Industrial
50% for Jewellery and 50 % for Industrial

3 Which country is the biggest consumer of the diamonds in the world accounting for 35
% of the diamonds sold?
India
Belgium
Japan
United States of America

4 Which country is the largest producer of diamonds presently?

United States of America
Russia
Botswana
Australia

5 Which country is the biggest consumer of the diamonds in the world accounting for 35
% of the diamonds sold?
India
Belgium
Japan
United States of America

6 The weight of one carat was standardize by the International Committee on Weights
and Measures that the metric carat should weight –
500 mg. or 0.2 gms
200 mg. or 0.2 gms
100 mg. or 0.5 gms
300 mg. or 0.5 gms

7 Carat is the term used to denote weight of diamond. A large diamond which is over 500
carats is the –
Kohinoor
Hope
Cullinan
Not in existence

8 Which are the 4 Cs – that should keep in mind while investing in diamonds?
Cut, Colour, Clarity and Carat
Cast, Creator, Cut and Carat
Cross, Certainty, Cobble and Cut
 None of the above

9 The colour of diamond is extremely important. Which is the best colour of diamond in
the given colour range to invest in?
G
E
D
Z

Chapter 40

1 What are the different forms in which Gold can be invested in?
Ornaments & Jewellery
Gold Bars, Gold Coins & Biscuits
Gold Bonds / Certificates and Gold ETFs
All of the above forms

2 The idea of Gold ETF was officially conceptualized by Benchmark Asset Management
Company. From which date the Gold ETFs have been launched in India?
March 19, 2007
March 19, 2005
March 19, 2003
March 19, 2001

3 Annual Fee and commission has been charged for trading in Gold ETF. What is the
general rate of commission charged for trading in Gold ETF?
0.25 %
0.35 %
0.40 %
0.50 %

4 Which metal is the world’s most popular, most desired and premier metal of the world
since centuries?
Diamonds
Gold
Silver
Platinum

5 Which is the world’s first civilization that has first used gold as sacred, ornamental and
decorative instruments in fifth millennium B.C.?
King Midas
Barbarian of Somalia
Sumerians of Mesopotamia
Aryans of Himalayas
6 Which is the traditional measure for weight of Gold?
Carat
Gram
Pound
Troy Ounces

7 The proportion of Gold in jewellery is measured on the _________ scale.

Carat
Gram
Pound
Troy ounces

8 The proportion of Gold in jewellery is measured on the carat scale. Pure gold is
designated ____ carat, which compares with the ‘fineness’ by which bar gold is defined.
24
22
18
14

9 Which carat gold has been generally used in the countries like Middle East, India and
South East Asia by jewelers for making of jewellery?
24
22
14
9

10 Which are the major factors that affect the price of Gold?
Growth in demand for jewellery
Increase in demand for exchange-traded paper backed products
Both “A” & “B” above
None of the above

11 In India demand of gold is constant and growing. How much Gold does India mine
during a year?
10 Tonnes p.a.
25 Tonnes p.a.
50 Tonnes p.a.
75 Tonnes p.a.

12 What are the prime / important reasons for investment in Gold?

Hedge against inflation
Liquidity, Convertibility and High Value
 Easy to Store and Status Symbol
All of the above reasons

Chapter 41

1 Silver was initially coined to produced money in around 700 BC by the –

Indians
Egyptians
Lydians
Sumerians

2 Which is the traditional measure for weight of Silver?

Carat
Gram
Pound
Troy Ounces

3 What is the average Gold / Silver Ratio has been prevailed during 20th Century?
1 : 15.50
1 : 25
1 : 47.20
1 : 55

4 Silver is a better investment for the long term. It has outperformed gold also. What is
the average rate of return generation a year-to-date on silver?
11.80 %
13.27 %
18.27 %
22.60 %

5 What are the various ways in which Silver can be invested in?
Exchange – Traded Funds
Silver Coins, Bars & Rounds
Spread Betting
All of the above

Chapter 42

1 What is the average rate of appreciation in farmlands in Bangalore and New Delhi now
a day?
Around 20 % to 25 % per annum
 Around 30 % to 35 % per annum
Around 34 % to 35 % per annum
Around 35 % to 50 % per annum

2 Agriculture land holdings and farmhouses are exempt from wealth tax in India.
Further, incomes from farms are exempt from income tax.
True
False

3 What are the things that one should be aware of before investing in a farmhouse?
Reputation of Developers and Title Clearance
Water, Electricity & Medical Facility
Transportation Facility
All of the above

Chapter 43

1 When the movement in real estate in India began?

In seventies, After the emergency imposed by Mrs. Gandhi
In nineties, After hike of stock market
In 2004, due to easy availability of Housing Loan
None of the above

2 What are the reasons for increase in the price of property?

The movement of population to the major metropolises
The growing affluence of the middle class
The easy availability of housing loans
All of the above

3 What is the average rate of return, if the investor rent out his property on leave and
licence agreement?
5% to 7 % of investment
8% to 10 % of investment
13% to 15 % of investment
10% to 11 % of investment

4 What are the important things / factors that one should keep in mind before buying a
property?
Reputation of Builder and Title clearance of property
Water & Power availability
Area / location and Locality
 All of the above

5 What are the deterrents for investing in housing property?

Huge Investment Involved
Rising Housing loan interest rates – difficult for servicing loan
Long term investment – no regular returns
All of the above

Chapter 44

1 From which age to which age a horse can use for race?
From 2 years of age to 5 years of age
From 1 years of age to 3 years of age
From 2 years of age to 4 years of age
From 4 years of age to 5 years of age

2 On an average, what amount can a horse earn as prize money from races during a year?
Rs. 1,00,000/-
Rs. 3,00,000/-
Rs. 8,00,000/-
Rs. 10,00,000/-

3 What is an average commission that has been paid to the trainer and jockey of the horse
from the earnings?
Trainer : 10 % Jockey : 5 %
Trainer : 5 % Jockey : 10 %
Trainer : 8 % Jockey : 8 %
Trainer : 10 % Jockey : 7.50 %

Chapter 45

1 In which year government of India banned the export of vintage cars, so that still India
has one of the richest troves of vintage cars?
1970
1972
1975
1982

2 Who is the very well-known and largest collector of vintage cars in India today?
Mr. Ratan Tata
Mr. Nowrojee Wadia
 Mr. Pranlal Bhogilal
Mr. Arun Kumar Mehta

3 What are the factors which one should look for before purchasing a vintage car?
Most important aspect is to determine its pedigree
Vehicles Condition
Availability of spare parts
All of the above