2022 Valid CWM_LEVEL_2 test answers & AAFM Exam PDF
Free AAFM CWM_LEVEL_2 Exam Questions & Answer from Training Expert Pass4sureCert
NEW QUESTION 437
Section B (2 Mark)
Mehak Rana took a loan of Rs 20 Lakh in September 2010 which is payable in 10 years (monthly installments).The rate of interest is 10% p.a.
What would be the remaining principal amount after September 2012?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
NEW QUESTION 438
Section A (1 Mark)
A public trust is created for the benefit of
- A. Charitable purposes only
- B. Uncertain and fluctuating body of persons
- C. Family member
- D. Individuals only
Answer: B
NEW QUESTION 439
Section B (2 Mark)
A dealer sold one January Nifty futures contract for Rs.250,000 on 15th January. Each Nifty futures contract is for delivery of 50 Nifties. On 25th January, the index closed at 5100. How much profit/loss did he make ?
- A. Profit of Rs. 9000
- B. Loss of Rs. 8000
- C. Loss of Rs. 5000
- D. Loss of Rs. 9500
Answer: C
NEW QUESTION 440
Section B (2 Mark)
The equity risk premium for the market is 8 percent. Jackson Products has a beta of 0.4. The real risk-free rate is 2 percent and the expected inflation premium is 5 percent. The required rate of return for Jackson is
__________ percent.
- A. 10.2
- B. 6.7
- C. 7.4
- D. 15.4
Answer: A
NEW QUESTION 441
Section A (1 Mark)
In Working Capital Finance, what should be the minimum current ratio the borrower needs to ensure the compliance under the first method of lending.
- A. 1.33:1
- B. 1.50:1
- C. 1.17:1
- D. 1.25:1
Answer: C
NEW QUESTION 442
Section A (1 Mark)
In order to remain competitive, non-core providers need to achieve the following:
- A. All of the above
- B. I,II,III
- C. I,III,IV
- D. II,III,IV
Answer: A
NEW QUESTION 443
Section C (4 Mark)
Read the senario and answer to the question.
Harish wants to go abroad on a family vacation tour in January next year. A tour operator is offering him a package in which he has to pay only Rs. 20,000 on 1st January, 2011 which is 10% upfront amount, while the remaining amount is to be repaid in 36 EMIs of Rs. 7,500 each, first EMI payable on 1st February, 2011.
Harish wants to know the annual effective rate of interest which he may incur in subscribing to this offer.
- A. 24.10% p.a.
- B. 27.00% p.a.
- C. 32.61% p.a.
- D. 28.56% p.a.
Answer: C
NEW QUESTION 444
Section B (2 Mark)
Under the Payment of Gratuity Act, 1972, where the employee employed in a seasonal establishment is deemed to be in continuous service for such period if he actually worked for not less than __________% of the number of days on which the such establishment was in operation during such period.
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
NEW QUESTION 445
Section C (4 Mark)
Which of the following firms is likely to have the same value from both models?
- A. I, II and V
- B. II and III
- C. I and III
- D. IV and V
Answer: C
NEW QUESTION 446
Section A (1 Mark)
Which of the following types of Beta has come into existence because of the growth of ETF market?
- A. Bespoke Beta
- B. Alternative Beta
- C. Cheap Beta
- D. Classic Beta
Answer: B
NEW QUESTION 447
Section B (2 Mark)
The Sachdeva family includes a financially well-informed couple, both aged thirty-two, and two children aged four and six. They are financially sound, but were not in the market during the bull market of the 2003 to 2007 as many of their neighbors were. The couple's total income, Rs.12,00,000 which is not expected to grow significantly. They have saved Rs.15,00,000, which they hope will be the financial foundation from which they will send their children to college and retire comfortably. The Sachdeva's suffer from:
- A. I and II
- B. I, II and III
- C. III and IV
- D. I, III and IV
Answer: D
NEW QUESTION 448
Section A (1 Mark)
Amit has monthly net income of Rs10500. He has a house payment of Rs 4500 per month, a car loan with payments of Rs 2500 per month, a Visa card with payments of Rs 500 per month, and a credit card with a local department store with payments of Rs 1000 per month.
What is Amit's debt payments-to-income ratio?
- A. 0.81
- B. 1.24
- C. 2.63
- D. 0.38
Answer: D
NEW QUESTION 449
Section B (2 Mark)
A bank plans to offer new subordinated notes in the open market next month but knows that its credit rating is being reviewed by a credit rating agency. The bank wants to avoid paying sharply higher credit costs. Which type of credit derivative contract would you most recommend for this situation?
- A. Credit linked note
- B. Credit option
- C. Credit risk option
- D. Total return swap
Answer: C
NEW QUESTION 450
Section A (1 Mark)
Determine the status of X and Y who are the legal heirs of Z
- A. BOI
- B. An individual
- C. Local Athority
- D. HUF
Answer: A
NEW QUESTION 451
Section A (1 Mark)
Which of the following is not normally one of the reasons for a change in an investor's circumstances?
- A. Change in time horizon
- B. Change in market conditions
- C. Change in legal considerations
- D. Change in tax circumstances
Answer: C
NEW QUESTION 452
Section A (1 Mark)
Which of the following is true regarding the resistance level?
- A. It is the level at which a significant decrease in demand is expected.
- B. It is the level at which a significant increase in supply is expected.
- C. It usually develops after a stock reaches a new low.
- D. It tends to develop due to profit taking.
Answer: B
NEW QUESTION 453
Section A (1 Mark)
Which of the following is the fastest growing source of revenue for state and local governments in US?
- A. The sales tax
- B. The property tax
- C. None of the above.
- D. User fees
Answer: D
NEW QUESTION 454
Section A (1 Mark)
Fiscal termites are factors that threaten the integrity of tax systems, and most of which relate to the internationalization of tax. These are:
- A. I, II and IV
- B. I, II and III
- C. III and IV
- D. All of the above
Answer: B
NEW QUESTION 455
Section A (1 Mark)
The________________ deals with the double-edged enigma of why individuals like dividends (in developed country where dividends are taxable) and why this method of income distribution persists in light of quite burdensome double taxation.
- A. Theory of Limited Arbitrage
- B. Present-biased preferences
- C. Dividend Puzzle
- D. Equity premium puzzle
Answer: C
NEW QUESTION 456
Section B (2 Mark)
Which of the following are the ways to avoid escalation of commitment are listed below?
- A. I and II
- B. I and III
- C. II and III
- D. All of the Above
Answer: D
NEW QUESTION 457
Section A (1 Mark)
Which of the following is not one a part of the primary stage in the Francis Buttle model?
- A. Customer Intimacy
- B. Customer Portfolio Analysis
- C. Network Development
- D. Organizational Design
Answer: D
NEW QUESTION 458
Section A (1 Mark)
The definition of a drawdown is
- A. A withdrawal made while fully invested
- B. A decline in the net asset value of the hedge fund
- C. A year end management fee
- D. A method to limit taxable gains for investors
Answer: B
NEW QUESTION 459
Section C (4 Mark)
Mr. Shyam has a portfolio consisting of two stocks A & B. Stock A has a standard deviation of 5 % while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and Stock B consists of
60%. If the correlation of returns of A & B is .5, the variance of return on the portfolio is _________.
- A. 0.0094
- B. -0.0085
- C. -0.0035
- D. 0.0103
Answer: D
NEW QUESTION 460
Section C (4 Mark)
Read the senario and answer to the question.
What would be the taxable amount on gratuity received by Jogen, if he would retired from an organization where employees are not covered under Gratuity Act?
- A. Rs. Nil
- B. Rs. 75,000
- C. Rs. 3,50,000
- D. Rs. 69,300
Answer: B
NEW QUESTION 461
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