Practice AAFM Certification CWM_LEVEL_2 exam. Online Exam Practice Tests with detailed explanations! Pass CWM_LEVEL_2 with confidence!
CWM_LEVEL_2 - Chartered Wealth Manager (CWM) Certification Level II Examination Practice Tests 2022 | PDFDumps
NEW QUESTION 183
Section A (1 Mark)
An agreement entered into between the owner of the vacate land and the builder/ developer is known
____________.
- A. Agreement for Sale
- B. Development Agreement
- C. Lease / Tenancy Agreement
- D. Indemnity Bond
Answer: B
NEW QUESTION 184
Section A (1 Mark)
Mansi has deposited Rs. 7,00,000/- in a bank today @ ROI of 10 % per annum compounded monthly. She wants to know that if she withdraws this money in monthly installments at the END of the month for 7 years, then how much will be the each installment amount?
- A. 12012.23
- B. 11,620.82
- C. 10788.23
- D. 13012.23
Answer: B
NEW QUESTION 185
Section C (4 Mark)
Read the senario and answer to the question.
Nimita wants to know if she were to meet with an accident and get permanent disability in the third year of her Term Insurance policy, what amount of the premium due in the fourth year would be payable by her if the premium being paid towards the policy is Rs. 15,000 with sum assured of Rs. 50 lakh?
- A. Rs. 7,500
- B. Rs. 12,000
- C. Rs. 15,000
- D. Nil
Answer: C
NEW QUESTION 186
Section B (2 Mark)
From the following data calculate the covariance between stock A and stock B
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
NEW QUESTION 187
Section C (4 Mark)
Which of the following statements is/are correct?
- A. I and II
- B. I, II and IV
- C. All of the Above
- D. III and IV
Answer: C
NEW QUESTION 188
Section B (2 Mark)
Both __________ depend on electronic information that has been collected about customers, in place of human knowledge, to build and manage relationships.
- A. Customer and consumer
- B. Service and idea
- C. CRM and e-CRM
- D. Product and service
Answer: D
NEW QUESTION 189
Section B (2 Mark)
When the income of an individual includes Rs. 20000 as the income of his minor child in terms of section
64(1A), taxable income in this respect will be:
- A. Rs. 20000
- B. Rs. 15000
- C. Nil
- D. Rs. 18500
Answer: D
NEW QUESTION 190
Section C (4 Mark)
What amount needs to be deposited today in an account that would pay Rs. 1,10,000 per year for the first 10 years and Rs. 2,25,000 for the next 5 years. If the ROI for the first 10 years if 10.75 % p.a. compounded annually and 13% p.a. compounded quarterly for the balance period?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
NEW QUESTION 191
Section A (1 Mark)
Financial Gerontology tries to assess client needs based on __________
- A. Interconnections of financial legal and ethical issues
- B. All of the above
- C. Demographics of middle aged children and their elderly parents
- D. Options for financing health and long term care
Answer: B
NEW QUESTION 192
Section B (2 Mark)
Which of the following statements is/are correct with respect to Resident Very Senior Citizen i.e. who is of an age of 80 years and above?
- A. All of the above
- B. I and II
- C. I and III
- D. Only III
Answer: B
NEW QUESTION 193
Section A (1 Mark)
Forecasting errors are potentially important because
- A. Research suggests that people underweight recent information.
- B. Research suggests that people correctly weight recent information.
- C. Research suggests that people overweight recent information.
- D. Either A or B depending on whether the information was good or bad.
Answer: C
NEW QUESTION 194
Section C (4 Mark)
A trader buys three-month put options on 1 unit of gold with a strike of Rs.17000/10 gms at a premium of Rs.70. Unit of trading is 1kg. On the day of expiration, the spot price of gold is Rs.16800/10 gms. What is his net payoff?
- A. (+) 13,000
- B. (+) 20,000
- C. (-) 20,000
- D. (-) 13,000
Answer: A
NEW QUESTION 195
Section A (1 Mark)
The premise of behavioral finance is that
- A. B and C
- B. Conventional financial theory ignores how real people make decisions and that people make a difference.
- C. Conventional financial theory should ignore how the average person makes decisions because the market is driven by investors that are much more sophisticated than the average person.
- D. Conventional financial theory considers how emotional people make decisions but the market is driven by rational utility maximizing investors.
Answer: B
NEW QUESTION 196
Section A (1 Mark)
Under which of the following categories of General Warranty Deed does the buyer is guaranteed that the title will be good against third parties attempting to establish title to the property?
- A. Covenant against encumbrances
- B. Covenant of further assurance
- C. Covenant of seisin
- D. Covenant of quiet enjoyment
Answer: D
NEW QUESTION 197
Section A (1 Mark)
The price that the writer of a put option receives for the underlying asset if the option is exercised is called the
- A. execution price
- B. Strike price
- C. None of the above
- D. Exercise price
Answer: C
NEW QUESTION 198
Section A (1 Mark)
A type of CRM Dominant characteristic which applies technology across organizational boundaries with a view to optimizing company, partner and customer value is known as_______________.
- A. Strategic
- B. Collaborative
- C. Analytical
- D. Operational
Answer: B
NEW QUESTION 199
Section C (4 Mark)
Read the senario and answer to the question.
Mr. Adhikari bought agricultural land in Patna in 94-95 for 1.75 lakh. That land was vacant for last so many years. But due to establishing a "Commercial Processing Zone" the Bihar Government has issued a notice for compulsorily acquirement on 12/08/2003. In 2006 government has fixed compensation for Rs. 6.50 lakhs and acquired it on 09/01/2006. Rs. 2 lakh was received by Mr. Adhikari on 07/03/2006. Mr. Adhikari and others were not satisfied with the compensation and file a suit in the court.
Balance compensation paid by Bihar Government on 08/10/2008. The compensation is enhanced by another
1.50 lakhs by the Bihar Government which paid by the Government on 11/12/2008.Compute Capital Gain tax in the hands of Mr. Adhikari for the assessment year 2009-10.
- A. The compensation amount is taxable @ 20 % without indexation benefit and enhanced compensation is exempt as per section 10(37).
- B. Compensation is exempted because the agricultural land was acquired by the Bihar Government
- C. The compensation amount is taxable @ 10 % with indexation benefit and enhanced compensation is exempt as per section 10(37)
- D. The compensation amount along with enhanced compensation of Rs. 1.50 lakhs shall be exempt as per section 10(37) because the agricultural land was acquired by the Government and as compensation is received after 31/03/2004.
Answer: D
Explanation:
Section C (4 Mark)
Mr. Sushobhan Adhikari, 56 years old, employee of Mega India Ltd, receives the following salary and perquisites from his employer during the previous year 2007-08.
A rent-free furnished house in Patna (rent of unfurnished house paid by employer- Rs. 84,000, rent of furniture Rs. 18,000, free services of a gardener (salary-Rs. 4,000), free services of cook (salary-Rs. 3,600), free services of watchman (salary-Rs. 900). He owns a small house at Patna.
Mr. Adhikari makes the following payments and investments during the year:
Mr. Adhikari comes to Mr. Gupta, CWM, in September-2008 for developing a wealth plan to fulfill his financial goals. Mr. Adhikari will retire on 31st December, 2008 after completing 28 years of service. He is expecting a growth of Rs. 1,500 in his basic pay in the last year of his employment. The company is expecting a 5% growth every year in its turnover. His daughter Pallavi has completed her education and his main liability is the amount he may have to spend for her marriage. On his retirement he is expected to receive following amount:
He also has also informed to the planner following his other assets and investments:
He has given his Kolkata Flat on 12,500 p.m. rent. Municipal value of the property is Rs. 1,45,000, fair rent is Rs. 1,60,000 and standard rent is 1,40,000. Municipal tax paid by him are as follows:
In July, 2008 rent is increased from Rs. 11,500 to Rs. 12,500 pm with effect from 01/04/2007. Due to some dispute rent was not received in 2007-08 but all arrears of rent till date are paid on July 1, 2008. Maximum eligible amount of PPF contribution deposited in March, 2008.
His actual expenses before retirement are Rs. 23,500 per month.
Main goals of Mr. Adhikari:
To provide for his daughter's marriage
Ensuring that his family is protected financially in the event of any mishap Minimize tax burden Establish an investment portfolio that gives high returns over long term Assumptions:
Mr. Adhikari needs to provide for himself and his family till he is 75.
Inflation rate after retirement to be 4%
Monthly expenses after retirement will be 15% less than before retirement After detailed discussion, Mr. Gupta, CWM, has suggested a revision in the portfolio as below to be implemented from October, 2008.
NEW QUESTION 200
Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:
* $ 1,22,300 in US dollars and he is a US citizen (Heads of the households)
* $ 310000 in SGD and he is a citizen of Singapore
- A. 27450.10 USD and 57780 SGD
- B. 24580.50 USD and 45200 SGD
- C. 24580 USD and 14870 SGD
- D. 25220 USD and 52700 SGD
Answer: D
NEW QUESTION 201
Section A (1 Mark)
The "lockup" problem involved in rebalancing refers to the:
- A. Problem that investors face in retirement accounts that cannot be liquidated prior to retirement.
- B. Trust accounts that are not managed by the investor and cannot be traded without incurring administrative costs.
- C. Problem of fixed-income securities that have little liquidity and therefore, must be held till maturity.
- D. Taxable accounts subject to capital gains taxes if investments are traded.
Answer: D
NEW QUESTION 202
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