Chartered Wealth Manager (CWM) Global Examination (GLO_CWM_LVL_1) Free Practice Test

Question 1

Joint account with a resident is permitted in case of

A. All of the above

B. NRE

C. FCNR

D. NRO A/c

Correct Answer: D

Question 2

Hedging with commodity futures

A. occurs when the individual takes delivery

B. results when an investor buys a contract

C. reduces the risk of loss

D. is the opposite of selling short

Correct Answer: C

Question 3

Investment made in a stock 2 years ago is Rs.1250; the current value is Rs.1300. The dividend received at the end of 2nd year is Rs.150. What is the CAGR?

A. 140%

B. 118%

C. 40%

D. 7.70%

Correct Answer: D

Question 4

In a Mutual Fund Structure as per the latest guidelines the fund sponsor has to contribute:

A. At least 30% of the AMC's net worth at conforms to SEBI guidelines

B. At least 40% of the AMC's net worth at conforms to SEBI guidelines

C. Exactly 50% of the net worth of AMC

D. At least 35% of the AMC's net worth at conforms to SEBI guidelines

Correct Answer: D

Question 5

Which of the following are the agency functions of a Commercial Bank?

A. I ,II and III

B. All of these

C. I , III and IV

D. I, II and IV

Correct Answer: B

Question 6

A mutual fund that invests in Indian Equities, foreign equities, Indian Corporate Bonds, Indian Government Gilts is subject to the following risks?

A. (iii) & (iv) only

B. (a) & (c) only

C. (a), (ii), (iii) & (iv)

D. (a), (iii) & (iv) only

Correct Answer: C

Question 7

From the following information of assets assets and liabilities, the taxable wealth for:

A. Rs 1,10,00,000 & Rs 40,00,000 respectively

B. Rs 70,00,000 & Rs 40,00,000 respectively

C. Rs 1,00,00,000 & Rs 40,00,000 respectively

D. Rs 1,10,00,000 & Rs 50,00,000 respectively

Correct Answer: A

Question 8

A document proposing to be a will which deliberately executed with all due formalities required for a valid will is called:

A. Holograph will

B. Duplicate will

C. Sham will

D. Concurrent will

Correct Answer: C

Question 9

Which of the following is not a characteristic of defined benefit plan?

A. Benefit levels are guaranteed

B. These plans are easy to design and explain to employees

C. Employer is subject to a recurring annual funding obligation

D. actuarial assumptions are necessary to determine actual contribution amounts

Correct Answer: B

Question 10

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

A. Creditor

B. Debtor

C. Agent

D. Principal

Correct Answer: D

Question 11

The expected return and standard deviations of stock A & B are:

Amit buys Rs.20,000 of Stock A and sells short Rs.10,000 of Stock B using all the Proceeds to buy more or Stock A.
The correlation Between the two securities is .35. What are the expected return & standard deviation of Amit's portfolio?

A. 20%, 14.5%

B. 9.8%, 15.6%

C. 8.8%, 7.03%

D. 3.5%, 15.5%

Correct Answer: A

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AAFM Chartered Wealth Manager (CWM) Global Examination (GLO_CWM_LVL_1) Free Practice Test