lic agent IC-38 exam set-7



CHAPTER 7 : PENSION AND ANNUITIES

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IC-38 Online Mock Test for LIC agency Exam preparation SET-7

Question-1

In an ordinary annuity, payments are made or received ___________ of each period.
[A]. At the beginning	[B].At the end
[C].On maturity	[D]. 6 months before expiry

Question-2

___________ is an annuity with an infinite life and making continuous annual payments.
[A]. APR	[B].Amortised loan
[C].Perpetuity	[D]. Principal

Question-3

_____________ is a term used to refer pensions that have some level of Government administration.
[A]. Insurance Pension Fund	[B].Public Pension Fund
[C]. Private Pension Fund	[D]. Market Pension Fund

Question-4

What is the basic contingency associated with pensions?
[A]. Mortality	[B].Morbidity
[C].Post-retirement income security	[D]. Disability

Question-5

Which of the below risk cannot be addressed through pensions?
[A]. Life longevity	[B].Inflation
[C].Investment risk	[D]. Early death

Question-6

With relation to annuities, explain what does “Liquidation period” refer to?
[A]. Period between the purchase of annuity and commencement of payments	[B].Period during which insurer makes annuity payments
[C].Time taken to build up the corpus	[D]. Insolvency period

Question-7

Amount of annuity payable depends on which of the following: 1. Principal sum of money 2. Investment period 3. Rate of return 4. Duration of annuity payments
[A]. 1 and 2	[B].2 and 3
[C].3 and 4	[D]. 1,2,3 and 4

Question-8

Amount of annuity payable is inversely related to which of the following: 1. Principal sum of money 2. Investment period 3. Rate of return 4. Duration of annuity payments
[A]. 1 only	[B].2 only
[C]. 3 only	[D]. 4 only

Question-9

Which of the below best describes an ordinary annuity?
[A]. Equal cash flows at equal time intervals forever	[B].Equal cash flows at equal time intervals for a specific time period
[C].Lumpy cash flows at equal time intervals forever	[D]. Lumpy cash flows at equal time intervals for a specific time period

Question-10

From the choices mentioned below, select the one that cannot be categorised as an annuity.
[A]. Rs. 2000 received today, Rs. 2000 received next year and Rs. 2000 received in 2 years	[B].Electricity Bill
[C].Car payments	[D]. Mortgage payments

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