CWM_LEVEL_2 exam questions for practice in 2021 Updated 1234 Questions
Updated Dec-2021 Premium CWM_LEVEL_2 Exam Engine pdf - Download Free Updated 1234 Questions
NEW QUESTION 446
Section C (4 Mark)
Zoya Ltd has the following Balance sheet for FY 2005-2006:
The Total Sales for the year was Rs. 6,00,000.
The company president believes the company carries excess inventory. Accordingly he wants the inventory turnover ratio to be 8x and would use the freed up cash to reduce current liabilities. If the company follows the president's recommendation and sales remain the same, the new quick ratio would be:
- A. 4.5
- B. 0
- C. 2.4
- D. 1.2
Answer: B
NEW QUESTION 447
Section C (4 Mark)
Read the senario and answer to the question.
Calculate his Life Insurance Coverage Ratio based on his net worth.
- A. 11.23
- B. 13.50
- C. 11.76
- D. 12.50
Answer: D
NEW QUESTION 448
Section A (1 Mark)
Which of the following statement is true?
- A. All of the above
- B. The BSE Stock Exchange is an example of a secondary market.
- C. The P/E ratio is the price of the stock divided by earnings per share.
- D. The spread between the bid and ask prices may be viewed as one of the costs of investing.
Answer: A
NEW QUESTION 449
Section A (1 Mark)
Credit reports provided by credit bureaus provide lenders:
- A. All of the above
- B. With personal identifying data
- C. With personal credit histories derived from data submitted by lenders
- D. With public information that may bear on a borrower's honesty and stability
Answer: A
NEW QUESTION 450
Section A (1 Mark)
Judgement rating is used in case of
- A. Fire Insurance
- B. Health Insurance
- C. Life Insurance
- D. Ocean Marine Insurance
Answer: D
NEW QUESTION 451
Section A (1 Mark)
In "Teenage Years" life stage, one learns about ___________
- A. All of the above
- B. Earned income
- C. Budgeting
- D. How money makes money
Answer: B
NEW QUESTION 452
Section A (1 Mark)
Conclusions about technical analysis suggest that:
- A. There is complete agreement about the interpretation of technical signals
- B. It has been found to be completely deficient
- C. Stock price movements repeat themselves constantly
- D. It is difficult to justify technical analysis
Answer: D
NEW QUESTION 453
Section A (1 Mark)
Data for five comparable income properties that sold recently are shown below:
What is the indicated overall rate (RO)?
- A. 10.05
- B. 11.5
- C. 9.54
- D. 12.25
Answer: A
NEW QUESTION 454
Section A (1 Mark)
Customer services are defined as:
- A. The provision of labor and other resources
- B. Provision of all resources and benefits to customers
- C. Increasing the value that buyer receives for their purchase
- D. Building company image
Answer: B
NEW QUESTION 455
Section A (1 Mark)
The best way to maintain your credit rating is to:
- A. Pay cash for your purchases.
- B. Repay your debts on time.
- C. Use credit sparingly.
- D. Declare a bankruptcy.
Answer: B
NEW QUESTION 456
Section A (1 Mark)
For calculating the benefit under Entertainment allowance, Salary means,
- A. Basic Salary + DA + commission + Bonus
- B. Basic Salary + DA
- C. Basic Salary
- D. Basic Salary + DA + commission
Answer: B
NEW QUESTION 457
Section B (2 Mark)
Consider these two investment strategies:
Strategy ___ is the dominant strategy because __________.
- A. 2, its return is at least equal to Strategy 1 and sometimes greater
- B. 1, it is riskless
- C. 1, it has the highest reward/risk ratio
- D. 2, it has the highest reward/risk ratio
Answer: A
NEW QUESTION 458
Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose taxable income is:
* $ 81250 in SGD and he is a Singapore citizen
* £ 67158p.a (only employment)and he is a UK citizen
- A. £ 16789.50 and 2310 SGD
- B. £ 26863.20 and 11375 SGD
- C. £ 6715.80 and 2843.50 SGD
- D. £ 13431.60 and 6906.25 SGD
Answer: B
NEW QUESTION 459
Section C (4 Mark)
Mr. Amit Jain has bought a house today which cost him Rs. 50 lacs by taking a loan of 30lacs for 15 years at
11% per annum compounded monthly. He currently has 10 lacs of financial assets and plans to save Rs. 3.25 lacs every year at the beginning of the year for the next 5 years. All his investments are expected to grow at a ROI of 15%per annum compounded quarterly. What will be the net worth of Mr. Amit after 5 years if the value of the house after 5 years is expected to be 75 lacs.
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
NEW QUESTION 460
Section A (1 Mark)
_____________ is defined as the transfer of services to private enterprise in US.
- A. Privatization
- B. Decrements
- C. Capital Spending
- D. Attrition
Answer: A
NEW QUESTION 461
Section A (1 Mark)
Rapid accumulation stage suggests that the net worth is ________
- A. 2 times of annual income
- B. 3 times of annual income
- C. 1 times of annual income
- D. 4 times of annual income
Answer: B
NEW QUESTION 462
Section B (2 Mark)
In the calculation of rates of return on common stock, dividends are _______ and capital gains are _____.
- A. Guaranteed; guaranteed
- B. Guaranteed; not guaranteed
- C. Not guaranteed; guaranteed
- D. Not guaranteed; not guaranteed
Answer: D
NEW QUESTION 463
Section C (4 Mark)
Read the senario and answer to the question.
The present household expenses of Mr Bhatia is Rs. 3,00,000 p.a. but if he were to retire today he would require only Rs. 2,25,000 p.a. Calculate his required retirement corpus if interest rate is 12% p.a. and inflation rate is 7%.
- A. Rs. 1,74,78,345
- B. Rs. 1,50,04,378
- C. Rs. 1,53,87,451
- D. Rs. 1,61,06,405
Answer: D
NEW QUESTION 464
Section A (1 Mark)
Which of the following characteristics are unique to real estate that differ from other asset classes?
- A. All of the above
- B. Indivisible
- C. Immobile
- D. Somewhat illiquid, and each property is unique, making valuation difficult.
Answer: A
NEW QUESTION 465
Section A (1 Mark)
A well-diversified portfolio is defined as
- A. One that is diversified over a large enough number of securities that the nonsystematic variance is essentially zero.
- B. A portfolio whose factor beta equals 1.0.
- C. One that contains securities from at least three different industry sectors.
- D. A portfolio that is equally weighted.
Answer: A
NEW QUESTION 466
Section A (1 Mark)
Which of the following is an advantage of a credit scoring model?
- A. Credit scoring models rely on the evaluation of an experienced credit officer
- B. Credit scoring models are immune from charges of discrimination
- C. Credit scoring models never make mistakes
- D. Credit scoring models can handle a large volume of applications in a short period of time
Answer: D
NEW QUESTION 467
Section A (1 Mark)
Monitoring and rebalancing a portfolio over time involves all of the following costs EXCEPT
- A. Time involved in decision making.
- B. Possible impact on market price.
- C. Commissions.
- D. Holding a portfolio that is no longer adequately diversified.
Answer: D
NEW QUESTION 468
Section B (2 Mark)
Calculate the value at which an office building can be priced from the following information:
A similar building has 8% capitalization rates.
- A. Rs. 23,95,500
- B. Rs. 23,00,000
- C. Rs. 22,12,000
- D. Rs. 24,13,500
Answer: B
NEW QUESTION 469
Section A (1 Mark)
How many states operate lotteries to generate revenue in US?
- A. 0
- B. 1
- C. All 50 states operate lotteries to generate revenue.
- D. 2
Answer: A
NEW QUESTION 470
Section A (1 Mark)
The cost which the Wealth management firms would generally not be able to fully absorb the revenue shock in the near future is known as Sticky Cost.
- A. TRUE
- B. FALSE
Answer: A
NEW QUESTION 471
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