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Free AAFM GLO_CWM_LVL_1 Practice Exam with Questions & Answers | Set: 4

Questions 61

Which of the following is true of Reverse Repo rate?

Options:
A.

Determined by free market forces

B.

Lower than repo rate

C.

benchmark for long term rates

D.

Part of funding cost for commercial banks

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Questions 62

If the income from a Private Trust originates from a business, then it is normally taxed.

Options:
A.

In the hands of beneficiary

B.

In the hands of settler

C.

In the hands of sponsor

D.

In the hands of trustees

Questions 63

Which of following statement is/are true in relation to PPF account?

GLO_CWM_LVL_1 Question 63

Options:
A.

Statements I & II are true

B.

Statements II & III are true.

C.

Statements I & IV are true

D.

Statements III & IV are true

Questions 64

X, a shopkeeper says to Y, who manages his business – “Sell nothing to Z unless he pays you ready money, for I have no opinion of his honesty”. Can Z claim against X for defamation?

Options:
A.

Yes, he can

B.

No, if the statement has been said in the good faith

C.

No, because it has not been published

D.

None of the above

Questions 65

Which school is prevalent all over India

Options:
A.

Dayabhaga

B.

Mitakshara

C.

Both

D.

None of the above

Questions 66

The market risk premium is defined as ___________

Options:
A.

the difference between the return on an index fund and the return on Treasury bills

B.

the difference between the return on a small firm mutual fund and the return on the Standard and Poor's 500 index

C.

the difference between the return on the risky asset with the lowest returns and the return on Treasury bills

D.

the difference between the return on the highest yielding asset and the lowest yielding asset.

Questions 67

Transfer of shares in the partnership firm is

Options:
A.

Restricted

B.

Freely transferable

C.

Prohibited

D.

None of these

Questions 68

Mr. Syelwester Andrews,a Resident Indian, has income derived from rubber plantation in Malaysia.It shall be treated as:

Options:
A.

Agricultural income and hence exempt

B.

Agricultural income but taxable under the head Income from Other Sources

C.

Exempt as earned outside India

D.

Taxable in Malaysia

Questions 69

BIS handles each of the following, except ________.

Options:
A.

Forum to promote discussion and policy analysis

B.

Centre for economic and monetary research

C.

Credit rating of global banks

D.

Prime counter-party for central banks

Questions 70

If everyone is forced to pay an extra Rs 1000 in taxes each year, "the" multiplier

Options:
A.

Is unchanged and income falls

B.

Becomes smaller and income falls

C.

Becomes larger and income falls

D.

becomes larger and income rises

Questions 71

According to the capital asset pricing model, the expected rate of return on any security is equal to __________.

Options:
A.

[(the risk-free rate) + (beta of the security)] x (market risk premium)

B.

(the risk-free rate) + [(variance of the security's return) x (market risk premium)]

C.

(the risk-free rate) + [(security's beta) x (market risk premium)]

D.

(market rate of return) + (the risk-free rate)]

Questions 72

Which of the following is controlled under monetary policy?

Options:
A.

Interest Rates

B.

Money Supply

C.

Inflation

D.

All of the above

Questions 73

“Early accumulation” life stage is normally during ______

Options:
A.

12- 19 years

B.

Our 20s

C.

30-40

D.

Retirement years

Questions 74

"When a customer deposits cheque with a bank for clearing, the customer becomes a _______."

Options:
A.

Debtor

B.

Principal

C.

Creditor

D.

Agent

Questions 75

A kind of lease in business organisations wherein the lesssor and lessee agree to a payment schedule (normally some months) have no payment and penalty

Options:
A.

Sub-lease

B.

Pre-Paid Purchase Lease

C.

Skip Lease

D.

True Lease

Questions 76

NRE stands for

Options:
A.

Non recurring expenses account

B.

Non resident External account

C.

Non recoverable expense account

D.

None of the above

Questions 77

Which of the following term means joint venture in Islamic Banking terminology?

Options:
A.

Murabahah

B.

Mudarabah

C.

Musharakah

D.

Musawamah

Questions 78

"A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "

Options:
A.

"Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower."

B.

Bank cannot sell the underlying security because its value is higher than loan.

C.

"Bank can retain the entire Rs. 60,000"

D.

"The excess of Rs. 10,000 has to be shared equally between the bank and the borrower."

Questions 79

Deduction under section 80QQB is allowed to an author of a book of literary or artistic or scientific nature who is resident in India to the extent of:

Options:
A.

100% of royalty income or Rs. 5,00,000 whichever is less

B.

100% of royalty income or Rs. 3,00,000 whichever is less

C.

50% of royalty income or Rs. 5,00,000 whichever is less

D.

50% of royalty income or Rs. 3,00,000 whichever is less

Questions 80

A ____________ mortgage binds himself to repay the mortgage money on a certain data transfer the mortgaged property absolutely to the mortgager.

Options:
A.

Anomalous mortgage

B.

English mortgage

C.

Reverse mortgage

D.

Usufructuary mortgage

Exam Code: GLO_CWM_LVL_1
Certification Provider: AAFM
Exam Name: Chartered Wealth Manager (CWM) Global Examination
Last Update: Jul 19, 2025
Questions: 1057

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