Online Access Free CWM_LEVEL_2 Exam Questions

Section B (2 Mark)
Fiscal policy generally has a _______ direct impact than monetary policy on the economy, and the formulation and implementation of fiscal policy is ______ than that of monetary policy.

• A.Less, slower
• B.Less, quicker
• C.More, slower
• D.More, quicker

Section C (4 Mark)
Read the senario and answer to the question.
Saxena is considering an attractive investment proposal in which he is being offered two different cash flow choices at the same initial investment of Rs. 2,00,000. According to you which one should he opt for assuming Risk Free Interest Rate is the required rate of return?

• A.Plan B should be opted since it has a higher Present Value.
• B.Plan B should be opted since it has a lower Future Value.
• C.Plan B should be opted since it has a lower Present Value.
• D.Plan A should be opted since it has a higher Future Value.

Section A (1 Mark)
Psychologists have found that people who make decisions that turn out badly blame themselves more when that decision was unconventional. The name for this phenomenon is

• A.Regret avoidance
• B.Overconfidence
• C.Mental accounting
• D.Framing

Section A (1 Mark)
We prefer a sure gain from a much larger gain that is very likely but not certain. This makes us close winning positions even if we think that they are likely to get even better.

• A.Overconfidence Bias
• B.Confirmation bias
• C.Certainity Effect
• D.Availability Bias

Section A (1 Mark)
All of the following are assumptions made by technical analysts except:

• A.Changes in trend are caused by shifts in supply and demand relationships.
• B.Stock price movements are independent.
• C.Security prices tend to move in trends.
• D.Supply and demand of securities are determined by various factors.