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

http://slidepdf.com/reader/full/quiz-1-sec-b-final 1/2

QUIZ I

M.M:10 Sec-2 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….. If a given sum of money becomes 1.5 times of its principal value in 3 Years. Whatis the compounded annual interest rate?  A. 18 % B. 13.5 % C. 14.47 %D. 12 %

Q 2…..We get tax rebate under same section of Income tax Law in which of these 2options.

A. PPF & Infra bond B. Education loan interest &Home loan interest

B. Home loan Principal & Post Office NSC D. Life insurance & HealthInsurance Policy

Q 3…..Given an investment of Rs. 10,000 over a period of two years, it is better to investin a scheme that pays:A. 10% interest in the first year and 12% in second year.B. 12% interest in the first year and 10% in second year.C. Both (a) and (b) above provide the same return

Q.4…..Assume that you have an 8% annual paying NCD of face value Rs 2000/-. If thediscount rate is 12%, then value of this Debenture should beA. 3111 B. 1333 C. 2000 D. cannot answer without knowing theinflation rate

Q 5…..What is Tax Adjusted Yield to investor of a 30% income slab for an Infra Bond, if interest cumulative rate on bond is 8% annual compounding for 5 years.

A. 12.50 % B. 15.98 % C. 8.75 % D. 17.68 %

Q.6 ….. If a 70 year old lady is paying Rs. 36000 Income Tax in financial year 2010-11.What is her income if she has invested Rs. 1.50 in life insurance policy & Rs.10000 inmediclaim policy in the same financial year.

A. 8,50,000 B. 6,65,000 C. 7,90,000 D. Cannot beanswered

Q7 ….. A person bought a residential property of Rs. 20 Lacs in 2005. Sold it off for anamount of Rs. 26 Lacs in 2009. (Cost inflation Index- Year 2005 -480 Year2006 -497

  Year2007 -519 Year 2008 - 558 Year 2009 - 582 Year 2010 - 632) What is thecapital gain tax he has to pay ?

A. According to Income tax Slab B. 1,20,000 C. 6,00,000D. Nil

Q.8….. Option 1-- 11 % bank FD Option 2-- 11 % Debt FundWhich is a better option for a person for 2 year investment horizon if inflation rate is0% in these 2 years…….1. If a person’s income is not taxable A. Option 1 B. Option 2 C. Cannot beanswered2. If a person is in 10% Income Slab A. Option 1 B. Option 2 C.Both are Equal3. If a person is in 30% Income Slab & a senior citizen

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

http://slidepdf.com/reader/full/quiz-1-sec-b-final 2/2

  A. Option 1 B. Option 2 C. Cannot beanswered

Q.9….. If the effective rate of interest compounded quarterly is 16%, then the nominalrate of interest is:

  A. 14.6% B. 15% C. 15.12%

Q.10 ….. Interest rates and bond pricesA. Move in the same direction. B. Move in opposite directions.

  C. Sometimes move in the same direction, sometimes in opposite directions.

  D. Have no relationship with each other (i.e. they are independent).