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

You are considering investing Rs 1,500 at an interest rate of 5% compounded annually for 2 years or investing the Rs1,500 at 7% per year simple interest rate for 2 years. Which option is better?

• Simple Interest by Rs56.25
• Compound Interest by Rs114.05
• Compound Interest by Rs52.75
• Simple Interest by Rs75.19

Some institutions may be used by criminals to transfer and hide illegal wealth. The institutions are often located in countries with well-developed secrecy laws and attractive tax structures.These institutions are called:

• Offshore banks
• Trusts
• Shell companies
• Front companies

ln the Transfer of property Act, immovable property does not include

• Building
• Land
• Pond
• Standing timber

A 12 year annual annuity of Rs. 10000 will begin 8 years hence (the first payment occurs at the end of 8 years). What is the present value of this annuity if the discount rate is 14 percent?

• Rs. 22898.12
• Rs. 22620.63
• C.Rs. 23456.78
• D.Rs. 22124.95

Which of the following is a self funded retirement security?

• Old age pension scheme
• Public provident fund
• Joint family system
• Provident Fund

Which of the following is true with regard to wealth planner's liability?

• A disclaimer removes all liability
• A principal advisor is responsible for actions of representative
• Advice is distinguishable from a recommendation
• An advisor may not be held liable for failure to predict economic changes

P Ltd sets the target to produce 1000 tones of steel during the next six months to recover the cost but there is a possibility that due to strikes and lockouts the targeted output may not be archived. What type of risk is associated with the production process?

• Pure Risk
• Speculative Risk
• Liability Risk
• All the above

M3 growth refers to ........

• Growth in GDP
• Growth in inflation
• Growth in money supply
• Growth in demand for money

________ & ________ are functions of IMF

• Surveillance, Technical assistance
• Financial Assistance, improving living standards
• Surveillance, United nations development business
• None of the above

A trust is extinguished if

• All the beneficiaries who all competent to contract have given their consent for revocation of the trust
• Fulfillment of its purpose her become impossible
• In purpose is completely fulfilled
• Any one of the above