Section B (2 Mark)
Eric, who has lived in the Netherlands for the whole of his life, arrives in the UK on 1 June 2011 and remains in the UK until 31 December 2011, when he returns permanently to the Netherlands. His UK residence status for 2011-12 is:

A. Resident and ordinarily resident

B. Resident but not ordinarily resident

C. Ordinarily resident but not resident

D. Neither resident nor ordinarily resident

Section A (1 Mark)
_____________ is defined as fairness in spending in US.

A. Efficiency

B. Equity

C. Effectiveness

D. All of the above are concerned with fairness in spending.

Section A (1 Mark)
Tax exemption limit for the lump sum received towards Leave encashment on retirement is at _______________

A. Rs. 3.5 lacs

B. Rs. 3 lacs

C. Rs. 2.4 lacs

D. Rs. 2 lacs

Section A (1 Mark)
A principal weakness of the Dow Theory is:

A. Its use of averages instead of indexes.

B. Its attention to general market movements

C. That it pays too much attention to primary trends.

D. The many versions that are available.

Section B (2 Mark)
Which of the following statements is/are true?

A. I, II and III

B. I, II and IV

C. I, III and IV

D. II, III and IV

Section B (2 Mark)
Which of the following are the two skills associated with being a good listener?

A. To pay attention and to provide a strong point of view in response to a given message.

B. To pay attention and to provide feedback.

C. To pay attention and to mask your disinterest when necessary.

D. To listen to more than one message at a time and to provide constructive criticism

Section A (1 Mark)
An example of a highly cyclical industry is ________.

A. The automobile industry

B. The tobacco industry

C. The food industry

D. A and B

Section A (1 Mark)
Book building is used to help in better

A. Institutional participation

B. Retail participation

C. Price discovery

D. Investor communication

Section B (2 Mark)
Under the Workmen Compensation Policy, when the employment injury results in death, the insurance company pays 40 % of the monthly wages of the deceased multiplied by the relevant factor or Rs. _________ whichever is more.

A. Rs. 50,000/-

B. Rs. 20,000/-

C. Rs. 25,000/-

D. Rs. 1,00,000/-

Section B (2 Mark)
Contribution under a defined benefit plan

A. Will be fixed in relation to the wages earned

B. Will be determined based on the benefits earned

C. Will remain unaltered once earned

D. Will be decided by the members of the benefit scheme

Section A (1 Mark)
After buying two stocks, one rises by 25% an d the other drops by 25%. You congratulate yourself on your brilliance for the first stock and blame bad luck on the second. You are demonstrating which investor bias?

A. Gambler's fallacy

B. Law of small numbers

C. Recency bias

D. Self-attribution bias

Section B (2 Mark)
Manav invests Rs. 500/- every 6 months towards a fund to pay for his children education. If the investment pays ROI @ 9 % per annum, compounded Semi Annually, then what will be the corpus after 10 years ?

A. 11234.98

B. 17563.23

C. 15,685.71

D. 23098.76