JAIIB Marathon May 2025 IE and IFS Quiz-3

03/05/2025

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JAIIB Marathon May 2025 IE and IFS Quiz-3

JAIIB CAIIB Course Quiz – May 2025: The JAIIB exam for May 2025, conducted by IIBF, is fast approaching. To support your preparation, we are providing regular MCQ-based quizzes specifically designed for the JAIIB CAIIB syllabus. These quizzes are structured module-wise and unit-wise to help you cover the entire syllabus systematically. Practicing these quizzes consistently will strengthen your concepts, improve accuracy, and increase your chances of clearing the exam on your first attempt.

Q.1 The CP buyback offer can be made at the prevailing market price only not before ___________ days from the date of issue.
(a) 7
(b) 14
(c) 21
(d) 30

Q.2 For being eligible for tri party agents, The applicant should have minimum paid-up equity share capital of Rs. ____________ crores.
(a) 20
(b) 25
(c) 50
(d) 100

Q.3 Among the below mentioned, which of the following is not a factor for price discovery?
(a) Market stability
(b) Risk appetite
(c) Available information
(d) Supply and demand

Q.4 Among the below mentioned, a Venture Capital Fund may raise moneys from any investor by way of issue of units, provided the minimum amount accepted from an investor is
(a) Rs 5 lakhs
(b) Rs 10 lakhs
(c) Rs 1 crore
(d) Rs 10 crores

Q.5 Which of the following is a disadvantage of hire-purchase as a financing option?
(a) Higher financing costs compared to leasing an asset.
(b) The inability to take advantage of tax benefits associated with ownership of an asset.
(c) The inability to change assets as business needs change.
(d) Lower return on investment compared to other financing options.

Q.6 Which of the following policies provides a death benefit to the beneficiaries for a specific period?
(a) Whole Life Insurance Policies
(b) Endowment Insurance Policies
(c) Term Insurance Plans
(d) Unit Linked Insurance Policy

Q.7 Which of the following is not a stringent investment regulation for the Exempted Funds that specify minimum investment limits?
(a) 25 % of assets must be invested in central government bonds
(b) 15 % of assets must be invested in state government bonds or bonds of public sector enterprises guaranteed by central or state governments
(c) 30 % are required to be invested in bonds of public financial institutions or public-sector enterprises
(d) 15 % of assets must be invested in green environment bonds

Q.8 Which of the following statement is true/false?

Mutual Fund: means a fund as defined in SEBI (Mutual Funds) Regulations, 1996.
Pension Fund Management: means management of a pension fund, as defined in the Pension Fund Regulatory Development Authority (Exit and Withdrawals under National Pension System) Regulations, 2014.
(a) True, True
(b) True, False
(c) False, True
(d) False, False

Q.9 What is the minimum percentage that an REIT should hold in completed and revenue earning projects?
(a) 50 %
(b) 75 %
(c) 80 %
(d) 85 %

Q.10 Which of the following policies provides a regular income after retirement?
(a) Deferred Annuity
(b) Immediate Annuity
(c) Whole Life Insurance Policies
(d) Term Insurance Plans

Q.11 Which of the following statements correctly differentiates between the Absolute Return and the Annualised Return methods in investment analysis?
A. Absolute Return considers the time duration of investment and is ideal for long-term investments, whereas Annualised Return ignores time and is best suited for short-term investments.
B. Absolute Return measures the percentage increase or decrease in investment value over any period and ignores time, while Annualised Return accounts for the time factor by calculating a compounded annual growth rate, ideal for investments exceeding one year.
C. Both Absolute Return and Annualised Return consider the time factor, but Absolute Return is more accurate as it uses the XIRR function.
D. Annualised Return is suitable only when the investment has grown at a linear rate, whereas Absolute Return assumes compounding

Q.12 Which of the following best defines the Total Expense Ratio (TER) in the context of mutual fund schemes in India?
A. TER is the percentage of profits distributed to investors after adjusting for management and custodial fees.
B. TER refers to the fixed cost charged once at the time of purchase of mutual fund units, irrespective of the holding period.
C. TER indicates the proportion of a fund’s daily net assets used annually to cover its operating expenses such as management fees, administrative costs, and marketing expenses.
D. TER represents the minimum return a fund must generate to remain compliant with SEBI regulations.

Q.13 Which of the following statements correctly reflects the concept of Load and No-Load Mutual Funds under current SEBI regulations in India?
A. A Load Fund allows the fund house to charge both entry and exit loads without any mandatory disclosure.
B. SEBI permits mutual funds in India to charge both entry and exit loads, provided the investor is informed within 30 days.
C. No-load funds charge only a nominal entry load, but completely waive the exit load for retail investors.
D. As per SEBI regulations, no entry load is permitted for any mutual fund scheme in India, and a Load Fund may only charge an exit load that must be disclosed in the offer document.

Q.14 Which of the following statements best captures the key features and benefits of a Systematic Investment Plan (SIP) in mutual funds?
A. SIP is a one-time investment strategy used only for debt-oriented mutual funds to maximize short-term capital gains.
B. SIP involves regular investments in mutual funds, usually equity-oriented, allowing investors to benefit from rupee cost averaging and the power of compounding, even with small amounts like Rs 500.
C. SIP is a government-mandated investment option available only to salaried individuals through the Employee Provident Fund system.
D. SIP requires a minimum investment of Rs 5,000 per installment and can be executed only on a monthly basis.

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