IC-99 Optional · Optional Life & General Insurance

Asset Management — Mock Tests & Exam Prep

Asset management — investment principles, asset classes, portfolio construction and asset-liability management.

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324
Verified questions
100
Questions per exam
2 hrs
Exam duration
60%
Pass mark
30
Credit points

Try IC-99 free — 5 real questions

These are 5 of the 324 IC-99 questions in Certena, taken from across the paper. Every answer key has been checked against a source — a printed answer key, a textbook extract, or arithmetic — not guessed. Reveal the answer and the explanation below each question. No sign-up needed.

Question 1
Identify from the following, an example of ‘Listing for Amalgamation’.
  1. AThe shares of XYZ’s company are being listed for the first time in NSE
  2. BXYZ Company whose shares are listed on a stock exchange issue securities to existing shareholders on rights basis
  3. CXYZ Company whose shares are listed on a stock exchange comes out with a public issue of securities
  4. DWhen new shares are issued by an amalgamated company to the shareholders of the amalgamating company
  5. EXYZ Company issues shares as a result of capitalisation of profit through bonus issue
Show answer & explanation

Answer: D. When new shares are issued by an amalgamated company to the shareholders of the amalgamating company

Listing for merger or amalgamation: When new shares are issued by an amalgamated company to the shareholders of the amalgamating company, such shares are also required to be listed on the concerned stock exchange.

Question 2
Describe the importance of Section 46 under Foreign Exchange Management
  1. AAct (FEMA), 1999.
  2. BSection 46 empowers the Central Government to make rules to administer forex management as per the provisions of the Act
  3. CSection 46 authorises the Central Government to provide general and specific directions to the Reserve Bank as it thinks fit and the Reserve Bank shall comply with such directions
  4. DSection 46 empowers the Reserve Bank to make regulations to carry out the provisions of the Act
  5. ESection 46 enables the Reserve Bank to authorise any person to deal in foreign exchange or in foreign securities as an authorised dealer, money change or off-shore banking unit or in any other manner as it deems fit
Show answer & explanation

Answer: B. Section 46 empowers the Central Government to make rules to administer forex management as per the provisions of the Act

The statutory framework for administration of foreign exchange in India is the Foreign Exchange Management Act, 1999. a) Section 46: The Central Government has been empowered under Section 46 of the Act to make rules to administer forex management as per the provisions of the Act.

Question 3
Considering low risk appetite of Dheeraj, which of the following security is suitable for his investment?
  1. ASecurities ß = 0.5
  2. BSecurities ß = 1.8
  3. CSecurities ß = 1.6
  4. DSecurities ß = 0.9
  5. ESecurities ß = 0.8
Show answer & explanation

Answer: A. Securities ß = 0.5

If Dheeraj has a low risk appetite, he should invest in securities with a lower beta value. The beta (β) of a security measures its volatility in relation to the market. A beta less than 1 indicates that the security is theoretically less volatile than the market, meaning lower risk. From the given options, the security with the lowest beta is the one with β = 0.5. Therefore, this would be the most suitable investment for Dheeraj, given his low risk appetite.

Question 4
Identify from the following, the bonds which have the coupon rate indexed to an economic parameter.
  1. ACallable bonds
  2. BZero coupon bonds
  3. CFixed rate bonds
  4. DFloating rate bonds
  5. EConvertible bonds
Show answer & explanation

Answer: D. Floating rate bonds

Floating Rate Bonds: These bonds have the coupon rate indexed to an economic parameter. For example, a bond might have its coupon payment set to a two percent premium over the inflation.

Question 5
_______________ is the biggest derivative market in the world.
  1. ACredit derivatives
  2. BCurrency derivatives
  3. CInterest rate derivatives
  4. DCommodity derivatives
  5. EPrecious metal derivatives
Show answer & explanation

Answer: C. Interest rate derivatives

An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a certain amount of money at a given interest rate. The interest rate derivatives market is the biggest derivative market in the world.

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Frequently asked questions

What is IC-99?
IC-99 (Asset Management) is an optional Optional-level examination offered by the Insurance Institute of India (III). Asset management — investment principles, asset classes, portfolio construction and asset-liability management.
How many questions are in the IC-99 exam?
The IC-99 exam has 100 MCQs to be answered in 120 minutes (2 hours). All questions must be attempted — there is no negative marking.
What is the pass mark for IC-99?
You need to score at least 60% to pass IC-99. Scoring 75% or above earns a Distinction grade.
How many credit points does IC-99 carry?
IC-99 carries 30 credit points. These count toward your III certification — 60 credits for Licentiate, 250 for Associateship, 490 for Fellowship.

Related subjects

IC-01
Principles of Insurance
IC-02
Practice of Life Insurance
IC-11
Practice of General Insurance
IC-22
Life Insurance Underwriting
IC-45
General Insurance Underwriting
IC-26
Life Insurance Finance

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