FPT MCQ 2021
FPT MCQ 2021
FPT MCQ 2021
FPT
MCQ QUESTIONS
1. Assessment year is the period of 12 months commencing from ……………. Every year.
A) 2% B) 1% C) 4% D) 5%
4. citizen of India who goes abroad for the purpose of employment, he must stay in India in the
previous year for at least ............................. days to become a resident
A) Accounting Year B) Assessment Year C) All of the above D) None of the above
6. It is a certificate, where the employer is certifying details regarding the salary you have
earned during the year:-
7. An annual consolidated tax statement that can be accessed from the income-tax website by
all taxpayers using their Permanent Account Number
8. Following statement declares the net tax liability, claiming of tax deductions:-
10. Payment done for medical insurance will be permissible under which deduction?
Investment planning Risk and Insurance planning Retirement planning Estate planning
Investment planning Risk and Insurance planning Tax planning Estate planning
b) Identify problems
c) Make a budget
A) Equity
B) Mutual fund
C) Derivatives
D) No investment
17. The borrower receives monthly loan instalments for the loan duration?
18. The main thing taken into consideration for time value of money is :-
20. If there is a no gap in current financial situation and financial goal what should be done?
C) Take a house
D) Do nothing
21 Someone who gets VRS should invest the money in which avenue?
A) Social influences
B) Economic conditions
c) Assets/ liabilities
28) Negotiable deposits issued by schedule commercial banks and all india financial institutions
in demat form is called:-
a) Certificate of deposit
b) Deposit
C) Fixed deposit
A) Savings account
B) FD
31) For post office savings scheme benefit of 80C is available till maximum amount of?
a) 2,00,000
b) 1,00,000
43) The goals that take more than five years to achieve?
1. short-term goal
2. intermediate goal
3. long-term goal
4. Current goal
Ans. 3
44) What is the amount of money you would need to deposit now in order to have a desired
amount in the future?
1. Present Value
2. Future Value
3. Future cost
4. Market Value
Ans. 1
46) What is the amount of income that is left after paying taxes and other deductions from your
gross pay
1. Gross pay
2. Total pay
3. Take home pay
4. Gross deductions
Ans. 3
47) What is the process called in which interest is earned on both the principal and on any
previously earned interest?
1. Re calculating
48) Which of the following is called a corporation’s written pledge to repay a specific amount of
money, along with interest?
1. Mutual fund
2. Corporate bond
3. Common stock
4. Preferred stock
Ans. 2
50) What is an expense that you can subtract from your adjusted gross income to figure your
taxable income?
1. Tax-deduction
2. Inclusion
3. Expense
4. Tax
Ans. 1
55) Following is a very convenient method of investing in mutual funds every month and it
works like an annuity:-
1. SWP
2. SIP
3. IPO
4. SPI
Ans. 2
56) In the following option you can invest a lump sum amount and then start withdrawing it:-
1. SWP
2. SIP
3. IPO
4. SPI
Ans. 1
58) Which of the following is distribution phase of financial planning life cycle approach?
1. Planning to transfer accumulated wealth to other persons or entitites
2. Income and expenses are rising
3. Education phase
4. Mid career
Ans. 1
60) In which of the following scheme borrower receives monthly loan installments for the loan
duration?
1. Mortgage
2. Reverse Mortgage
3. Secured loan
4. Unsecured loan
Ans. 2
61) Which of the following is risk free scheme for retirement planning?
1. PPF
2. NPS
3. ELSS
4. Equity
Ans. 1
62) Wealth creation will be done during which of the following years?
1. Retirement years
2. Post retirement years
3. Childhood years
4. Accumulation years
Ans. 4
69) Exemption u/s 54B is applicable to following eligible capital asset to be sold:-
1. Residential house
2. Agriculture land
3. Any LT asset
4. NHAI Bonds
Ans.2
70) Which of the following section is for Interest on loan for Higher Education
1. Sec 80EE
2. Sec 80EEE
3. Sec 80GG
4. Sec 80E
Ans.4
71) Annual Income = 1500, Total expenses = 1200, Calculate savings ratio
1. 0.80
2. 0.20
3. 0.67
4. 0.30
Ans.2
73) Payment done for Life insurance premium will be permissible under which deduction?
1. 80C
2. 80CCD
3. 80E
4. 80F
Ans.1
75) It is a certificate, where the employer is certifying details regarding the salary you have
earned during the year:-
1. Form 16
2. Form AS
3. Form 18
4. Form 15
Ans.1
76) This form is an annual consolidated tax statement that can be accessed from the income-
tax website by all taxpayers using their Permanent Account Number (PAN)
1. Form 16
2. Form AS
3. Form 26AS
4. Form 15
Ans.3
77) It is a web-based application of the Income Tax Department that provides an interface to all
stakeholders associated with TDS administration:-
1. RACES
2. TRA
3. RSA
4. TRACES
Ans.4
78) A form that is used to declare the net tax liability, claiming of tax deductions:-
1. TRA
2. ITR
3. ITS
4. ITTR
Ans.2
80) An asset held by assessee for less than 36 months immediately prior to its date of transfer is
called?
1. Long term capital asset
2. Short term capital asset
3. Terminal Capital asset
4. Medium term captial asset
Ans.2
81) Payment done for medical treatment of person with disability will be permissible under
which deduction?
1. 80C
2. 80CCD
3. 80DD
4. 80EE
Ans.3
82) Payment done for donation will be permissible under which deduction?
1. 80C
2. 80G
3. 80E
4. 80EE
Ans.2
89) According to the wealth life cycle approach, a 55 year old investor who is about to retire in
a few months is considered to be in
93) The amount of health and education cess to be collected along with income-tax for
assessment year 2020-21 shall be
1. 0.01
2. 0.02
3. 0.03
4. 0.04
Ans.4
98) Dr. Ranjan started his medical practice on 1st September, 2018. The previous year for the
profession for the assessment year 2019-20 would be
1. 1st September, 2018 to 31st March, 2019
2. 1st June, 2018 to 31st March, 2019
3. 1st April, 2018 to 31st March, 2019
4. 1st September, 2018 to 31st January, 2019
Ans.1
99) Which of the following is one of the additional condition for assessing residential status?
1. Presence in India for at least 182 days during 7 years immediately preceeding previous
year.
102) Which form is applicable for TDS on Income Other than Salary?
1. Form 16A
2. Form 16
3. Form 17
4. Form 18
Ans.1
105) Which of the following expenses will decrease at the time of retirement?
1. Loan EMI
2. Electricity expenses
3. Medical expenses
4. Insurance expenses
Ans.1
108) Risk taker will invest higher proportion of his investment in which of the following avenue?
1. FD
2. PPF
3. Post office
4. Derivatives
Ans.4
109) Which of the following ratio will help to influence most in your investment decision?
1. P/E ratio
2. Current ratio
3. Turnover ratio
4. Debtors collection period
110) Which of the following is one of the limitation of investing in real estate?
1. Misleading advertisements
2. Illiquidity
3. Easy entry
4. No management concerns
Ans.2
111) Mr. Rushit has just taken retirement from his company has received Rs.50 lakhs as
retirement compensation. Which of the following is the best option for him?
1. Invest entire amount in equity
2. Invest entire amount in real estate
3. Invest in various retirement schemes
4. Invest entire amount in gold
Ans.3
112) A person whose age is 40 years and is working with a bank. What should be the best asset
allocation model for him?
1. 100% Debt
2. 80% Debt 20% equity
3. No savings and investment
4. 30% Debt and 70% equity
Ans.4
113) Which of the following is included in wealth protection in wealth cycle planning?
1. Investment planning
2. Tax planning
3. Estate planning
4. Risk and Insurance planning
Ans.4
116) If there is a large gap in current financial situation and financial goal what should be done?
1. Increase income or reduce expenses
2. Increase expenses or reduce income
3. Take a house
4. Go for a luxurious car
Ans.1
119) The option to convert the bond into equity of the issuing firm on pre-specified terms is
under which of the following option?
1. Callable Bonds
2. Non convertible bonds
3. Amortizing bonds
4. Convertible Bonds
Ans.4
124) A risk averse investor will choose which of the following alternative?
1. investment alternatives that offer the highest risk
2. investment alternatives that offer the medium risk
3. investment alternatives that offer the higher return
4. investment alternatives that offer the least risk
Ans.4
126) Which of the following modifications to the list of assets and liabilities below would result
in a positive net worth?
1. Increasing car loan
2. Increasing credit card balance
3. Increasing investments
4. Reducing Car value
Ans.3
127) A high diabetic person should incorporate definitely which of the following in its financial
plan?
1. Retirement planning
2. Insurance planning
3. Tax planning
4. Investment planning
Ans.2
129) For claiming refund which of the following statements are required to be filed?
1. UTR
2. ITR
3. RTI
4. TIR
Ans.2