Financial Markets Quiz #2

What is the Short-Term Capital Gains (STCG) tax on listed equity shares after Budget 2024?

• 10%

• 15%

• 20%

• 12.5%

LTCG on equity mutual funds post-Budget 2024 is applicable at ?

• 10% above ₹1 lakh

• 12.5% above ₹1.25 lakh

• 15% above ₹2 lakh

• 20% above ₹1 lakh

Why are stockbrokers not taxed under LTCG for client transactions?

• They operate from outside India

• They don’t own the capital assets

• Brokers get exemptions from CBDT

• They pay STT on all trades

What is STT and why is it relevant to capital gains taxation?

• It’s a tax on annual profits

• It ensures eligibility for LTCG/STCG tax benefits

• It is a fixed service fee for brokers

A bond purchased at 7% yield becomes more attractive when ?

• Interest rate drops to 6%

• Interest rate rises to 8%

• Repo rate increases

What does CAGR help calculate?

• Tax savings on mutual funds

• Compounding interest monthly

• Lump sum value of SIPs

• Average annual growth rate over time

IRR is best used when ?

• You invest in gold

• A investment has a single inflow and outflow

• You invest in a recurring deposit

• There are multiple cash flows over time in an investment

What is “mark-to-market gain" ?

• Profit on maturity of a bond

• Bonus units in mutual funds

• Appreciation in bond value due to interest rate fall

• Dividend payout

How does a steep yield curve help annuity providers?

• It reduces risk on payouts

• It allows better annuity returns by locking high long-term bond rates

• It reduces default rates

• It increases FD rates

NRE accounts are best suited for ?

• Income earned in India

• Tracking NRI expenses

• Managing foreign income and repatriation