8/3/2019 Quiz 1 SEC-A- Final

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QUIZ IM.M:10 Sec-1

NAME: Roll. No.

Note: -* No consideration of Education Cess & Higher Education Cess. in TaxationQuestions

* Qualitative Parameters will not be considered in decision making.

Q.1 .. What's the value to you of a $1,000 face-value bond with an 8% coupon

rate when your required rate of return is 15 % ?A. More than its face value. B. Less than its face value. C. $1,000.

Q.2 .. In 3 years you are to receive $5,000. If the interest rate were to suddenlyincrease, the present value of that future amount to you would

A. Fall. B . Rise. C. Cannot be answeredwithout more information

Q.3 ..Assume that you have a 14 % annual paying NCD of face value2000/-. The value of this Debenture if the discount rate is 9% should be

A. 3111 B . 1285 C . Cant answer without knowing inflation rate

Q.4 ..If a person pays only Rs. 4000 income tax in a current financial year with

an incomeof Rs. 5.2 lacs, then what is his Age?

A. New born Baby (Less than 18 year ) B. More than 100 Years C. 45 year unemployed Male D. Cant beanswered

Q.5 An individual can get Total rebate of a maximum amount of Rs. .for investment in Mediclaim Policy under section 80 D of the income tax act.

A. 15,000 B . 20,000B. 35,000 D . 40,000

Q.6.. How many years a given sum of money will get triple (3 times) of itsprincipal value @ 8 % compounded annually.

A. 9 Years B . 13.5 YearsC. 14.27 Years D. 18 Years

Q.7 .. Option 1-- 10 % bank FD Option 2-- 10.5 % Debt FundWhich is a better option for a person for 5 year investmenthorizon if.1. If a persons income is not taxable A. Option 1 B. Option 2 C.cannot be answered2. If a person is in 10% Income Slab A. Option 1 B. Option 2 C.Cannot be answered3. If a person is in 20% Income Slab & a Senior Citizen

A. Option 1 B. Option 2 C. Cannot be answered

Q.8 ..If a Man earns Rs. 7.20 Lacs & a Woman earns Rs. 7.10 Lacs. ChooseCorrect Option about tax payment in current financial year--- (both of them donthave any tax saving instrument).

A . Woman will Pay Rs. 1000 more tax than man B . Man will Pay Rs. 2000 taxextra than woman C . Man will Pay Rs. 3000 tax extra than woman D . Both will pay equal tax

Q.9 .. A person bought a residential property of Rs. 20 Lacs in 2005. Sold it off for an amount Rs. 24 Lacs in 2009. (Cost of inflation Index- Year 2005 - 480

Year2006 - 497 Year2007 - 519

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Year 2008 - 558 Year2009 - 582 Year 2010 - 632) then he makes..A. Capital gain of Rs. 5, 10,000 B . Capital gain of Rs. 4 LacsB. Capital Loss of Rs. 25,000 D. He pays Rs. 80,000 as capital

gain tax

Q.10 ..If an 88 year old Female is paying Rs. 36000 Income tax in financial year2011-12. What is her total income? (If she invested Rs. 1.70 Lac in tax savinginstruments in the current financial year) A. 3, 60,000 B . 7, 25,000 C. 8, 50,000 D. 6, 95,000