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FIN533 POP QUIZ

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

The followings are the type of life insurance EXCEPT:

a)

Medical and health insurance

b)

Whole life insurance

c)

Motor insurance

d)

Education insurance

2.

Buying insurance is part of risk management tool and fall under:

a)

Risk avoidance

b)

Risk transfer

c)

Risk sharing

d)

Risk reduction

3.

This type of insurance provides a protection and saving plan for the policy holders. The coverage of this product includes insured against death, permanent total disability and critical illness. It refers to:

a)

Endowment insurance

b)

Whole life insurance

c)

Investment linked insurance

d)

Travel insurance

4.

Which of the following are NOT the functions of insurance?

a)

To provide protection for family

b)

To assist in economic survival

c)

To cover the cost of loss.

d)

To gain an income

5.

The main purpose of life insurance is to:

a)

make up for loss of earnings if an insured person is unable to ever work again

b)

pay for urgent medical expenses to save the life of an insured person if that is needed

c)

meet an insured person’s debts and other financial commitments in the event of death

d)

provide a lump sum if an insured person is diagnosed with a life-threatening illness

6.

The best time to apply for life insurance is:

a)

today, because you don’t know what might happen to you tomorrow

b)

tomorrow, because you shouldn’t do now what you can put off until then

c)

as soon as you have any dependants, whenever in the future that might be

d)

as soon as you develop a serious medical condition, so you can be covered for it

7.

If an insured person dies, the person entitled to receive the life insurance benefit is:

a)

the policy owner, but only if the policy owner is related to the life insured

b)

the next of kin of the insured person

c)

the executor of the insured person’s will, regardless of who the policy owner is

d)

the policy owner, regardless of who that person is

8.

Choose the correct types of common share.

a)

Fixed deposit

b)

Savings

c)

Bonds

d)

Growth share

9.

Which one is the features of common share?

a)

Limited liability

b)

Flexible par value

c)

Less volatile

d)

Influence by population

10.

Choose the correct basic investment concepts that individual should know:

a)

Real Estate Cycle

b)

Risk and Return

c)

Close-End Fund

d)

Voting Right’s

11.

Types of investment is

a)

Blue chip share

b)

Growth share

c)

Income share

d)

Common share

12.

What is the objectives of savings account?

a)

Wealth accumulation

b)

Service of professional fund managers

c)

Diversification of risks

d)

High return

13.

Accounts maintained by retail financial institutions that pay interest but cannot be used directly as money". What is the best to explain this statement?

a)

Bond

b)

Fixed deposit

c)

Savings account

d)

Properties

14.

Which one of the following statements best describes unit trust investment?

a)

A real estate property which is not occupied by the owner

b)

The issuer has to make periodic interest payments to the investor who is also known as the buyer at the maturity

c)

No interest paid on one, two, or three months

d)

Allow fund managers to pool money from numerous investors to invest in a portfolio of assets such as deposits, stocks, and bonds

15.

Below are the parties involved in unit trust, except:

a)

investment management company

b)

unit holder

c)

trustee

d)

remisier

16.

Below are the types of unit trust, except:

a)

equity funds

b)

fixed income funds

c)

property trust funds

d)

gold funds

17.

Individual are not eligible to apply EPF withdrawal due to:

a)

Purchase or build a house

b)

Death withdrawal

c)

Renovate, repair or do additional work on the existing house

d)

Investment

18.

Choose the correct statement on Private Retirement Scheme (PRS)

a)

Individual tax relief of up to RM3,000 of PRS contribution per assessment year

b)

Individual can make regular contributions or a lump sum contribution with minimum contribution of RM10.00

c)

Individual can begin investing in PRS at the retirement age

d)

PRS is mandatory for self-employed

19.

Choose the correct statement on EPF:

a)

The first account, dubbed "Account I", stores 60% of the members' monthly contribution, while the second account, stores the balance percentage.

b)

Account I restrict withdrawals to the moment the member reaches an age of 55 years.

c)

Membership of the EPF is mandatory for Malaysian citizens employed in the private sector, and voluntary for non-Malaysian citizens.

d)

The EPF require a contribution of 11% of each member's monthly salary, while the member's employer is obligated to additionally fund at least 14% of employee's salary to the savings at the same time

20.

the planning of retirement is not done well, people would suffer during retirement. These are the reasons why it could happen, except:

a)

putting away too little

b)

starting too late

c)

proper financial planning

d)

investing too conservatively