Insurance & Capital Markets

J&K Bank PO · General & Financial Awareness · 15 practice questions with answers and explanations: 6 Easy, 9 Medium, 0 Hard.

Sample questions

Sample Easy question 1

Reinsurance means:

  1. A policy renewed every year
  2. Insurance for ships
  3. An insurer transferring part of its risk to another insurer
  4. Insurance of a bank's deposits
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Answer: C. Reinsurance spreads large risks among insurers.

Sample Easy question 2

The face value of a share is:

  1. The dividend paid per year
  2. Its nominal value stated on the share certificate
  3. Its current market price
  4. The profit of the company
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Answer: B. Market price can be above or below the face value.

Sample Easy question 3

What does IPO stand for?

  1. Initial Public Offering
  2. Initial Price Order
  3. Internal Profit Option
  4. Indian Private Ownership
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Answer: A. An IPO is a company's first sale of shares to the public.

Sample Medium question 4

The 'primary market' is where:

  1. Currency is exchanged
  2. Gold is traded
  3. New securities are issued for the first time
  4. Existing shares are traded between investors
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Answer: C. An IPO takes place in the primary market.

Sample Medium question 5

What does NAV stand for in a mutual fund?

  1. Net Asset Value
  2. Net Annual Variation
  3. New Allotment Value
  4. National Account Value
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Answer: A. NAV is the per-unit value of the fund's assets minus liabilities.

Sample Medium question 6

A SIP (Systematic Investment Plan) allows an investor to:

  1. Invest a fixed amount regularly in a mutual fund
  2. Take a loan against shares
  3. Pay tax in instalments
  4. Buy insurance for one year
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Answer: A. SIPs spread investment over time instead of investing a lump sum.

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