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Insurance and Mutual Fund Quiz

Total questions: 43

Worksheet time: 22mins

Name
Class
Date
1.

Largest Life Insurance Company in India is:

a)

The New India Assurance Company Limited

b)

Life Insurance Corporation of India (LIC)

c)

United India Insurance Company Limited

d)

National Insurance Company Limited

2.

Which of the following is not the principal of insurance:

a)

Utmost Good Faith

b)

Principle of Contribution

c)

Maximization of Profit

d)

Causa Proxima

3.

"Stepping into shoes of other" related with:

a)

Principle of CAUSA PROXIMA

b)

Principle of Subrogation

c)

Principle of Contribution

d)

Principle of Indemnity

4.

A person must be benefited by that thing which he wants to be insured is called:

a)

Interest

b)

Insurable Interest

c)

Causa Proxima

d)

Contribution of That person

5.

Up to what extent, FDI in Insurance sector is allowed by the Government of India (GOI)?

a)

26%

b)

49%

c)

51%

d)

100%

6.

Which Insurance policy gives holder the benefits of both Insurance and Investment?

a)

Term Insurance Policies

b)

Money-back Policies

c)

Unit-linked Investment Policies

d)

Pension Policies

7.

IRDA is associated with?

a)

Railways

b)

Insurance Sector

c)

Banking

d)

Tele Communication

8.

An insurable risk is one in which:

a)

The loss is a specific amount.

b)

The loss is not accidental.

c)

The risk is dispersed.

d)

The policyholder has no insurable interest.

9.

Which risk-management technique does self-insurance satisfy?

a)

Risk reduction

b)

Risk assumption

c)

Risk avoidance

d)

Shifting risks

e)

Risk elimination

10.

What type of life insurance policy would you recommend for a young couple, with no children, that would provide the most protection for the smallest premium?

a)

Term

b)

ULIP

c)

Whole life

d)

Endowment

11.

________ Risk involves a chance of either profit or loss.

a)

Fundamental

b)

Particular

c)

Speculative

d)

Pure

12.

Amusement parks often have a minimum height restriction on some of their most thrilling rides. This risk management strategy is done in an effort to:

a)

Minimize the speculative risk associated with an injury.

b)

Reduce the risk associated with a potential accident.

c)

Self-insure against a speculative accident.

d)

Create the perception of a more exciting ride.

13.

The risk of potential losses to others as a result of injury or damage you may have caused is:

a)

Property risk

b)

Insurance

c)

Liability risk

d)

Personal risk

14.

__________ is the likelihood that an event will occur.

a)

Peril

b)

Hazard

c)

Probability

d)

Risk

15.

Certain percentage of the sum assured is paid periodically according to..........policy

a)

Term

b)

Endowment

c)

Money back

d)

Group insurance

16.

The person whose risk is insured is called

a)

Insured

b)

Assured

c)

Insurer

d)

Insuree

17.

............ policy matures on the assureds’ death or on his attainment of particular age whichever is earlier

a)

Endowment policy

b)

Money back policy

c)

Joint life policy

d)

Single premium policy

18.

......... means a wilful and intentional act on part of self-destroyer

a)

Death

b)

Suicide

c)

Murder

d)

Accident

19.

The policies where the premium is payable throughout the life of the assured is called

a)

Whole life policy

b)

Renewable term policy

c)

Sinking fund policy

d)

Annuity policy

20.

The principle of ‘prevention is better than cure’ refers to

a)

Avoiding of risk

b)

Reduction of risk

c)

Transferring risk

d)

Shifting of risk

21.

............... is the amount which the insurer is prepared to pay before the date of maturity of policy.

a)

Paid up value

b)

Surrender value

c)

Both a & b

d)

None of the above

22.

............ is document issued to the insured in advance of the policy?

a)

Premium receipt

b)

Cover Note

c)

Certificate of insurance

d)

All of these

23.

The concept of insurance involves a transfer of

a)

liability.

b)

needs.

c)

ownership.

d)

risk.

24.

Rakesh recently bought a health insurance policy and a personal accident policy. What main section(s) of the insurance market do these products normally fall into?

a)

Life insurance in both cases.

b)

Life insurance for health and non-life insurance for personal accident.

c)

Non-life insurance in both cases.

d)

Non-life insurance for health and life insurance for personal accident.

25.

Rahul is employed by Sunny. In respect of this employment, Rahul automatically has insurable interest in Sunny’s life up to what limit, if any?

a)

Rahul’s monthly salary.

b)

Rahul’s pension fund value.

c)

Sunny’s annual profit.

d)

There is no limit.

26.

Indian Mutual Fund industry is well regulated by __________

a)

RBI

b)

SEBI

c)

Banks

d)

Issue Company

27.

A initial period offer made of fixed price units when a new scheme is launched by a fund house is called __________

a)

IPO

b)

NFO

c)

ETF

d)

Right Issue

28.

Which fund invests predominantly in safer short-term instruments?

a)

Income Fund

b)

Liquid Fund

c)

Gilt Fund

d)

Debt Fund

29.

Net Asset Value (NAV) of debt-oriented mutual fund scheme is affected by __________

a)

Fluctuation in equity market

b)

Change in interest rate

c)

Debt-based mutual fund

d)

All the above

30.

What is the full form of ETF?

a)

Exchange Traded Fund

b)

Energy, Time, Frequency

c)

Electronic Traded Fund

d)

None of these

31.

UTI was set up by whom?

a)

SEBI

b)

RBI

c)

IDBI

d)

SBI

32.

Which mutual fund scheme provides periodic repurchase facility to investors?

a)

Close-ended Scheme

b)

Open-ended Scheme

c)

Balanced Scheme

d)

Interval Scheme

33.

Equity-oriented mutual fund scheme is also called as __________

a)

Income Oriented

b)

Growth Oriented

c)

Long Term Oriented

d)

All of the above

34.

An investor who wants regular and steady income should invest in which mutual fund?

a)

Equity Based Mutual Fund

b)

Balanced Fund

c)

Debt Based Mutual Fund

d)

Gold Fund

35.

Which fund invests exclusively in the dated securities issued by the government?

a)

Balanced Fund

b)

Liquid Fund

c)

Debt Fund

d)

Gilt Fund

36.

A mutual fund’s performance is best measured by __________

a)

Yield and Capital Gains Distributions

b)

Net Asset Value

c)

Price Appreciation and Net Asset Value

d)

Total Return

37.

Which type of mutual fund has generally offered the best protection against inflation?

a)

Equity Fund

b)

Money Market Fund

c)

Hybrid Fund

d)

Liquid Fund

38.

According to SEBI regulations, __________ of the directors of trustee company or board of trustees must be independent?

a)

Half

b)

One Third

c)

Two Thirds

d)

One Fourth

39.

__________ reassures the investors of mutual funds that the mutual funds function within the strict regulatory framework.

a)

SEBI

b)

AMFI

c)

IRDA

d)

RBI

40.

In which option are dividends not paid out to the unit holder but directly invested in the scheme and reflected in NAV of the units?

a)

Income Option

b)

Growth Option

c)

Dividend Payout Option

d)

Dividend Reinvestment Option

41.

When was permission given to private sector funds including foreign fund management companies to enter mutual fund in India?

a)

1994

b)

1987

c)

1990

d)

1993

42.

Which was the first public sector mutual fund to be set up after the Unit Trust of India?

a)

Franklin Templeton

b)

CanRobeco

c)

Tata AIG

d)

SBI Mutual Fund

43.

If market interest rates increase, the price of an existing bond or bond fund generally will __________

a)

Increase

b)

Decrease

c)

Stay about the same

d)

Don’t know