L&B Mock Test

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L&B Mock Test

All India Valuers Association L&B Mock Test2

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1. Which of the following is not the basic type of lease, under leasing of immovable properties?

1 point

a. Building lease

b. Standard Lease

c. Sub Lease

d. Occupational Lease

Clear selection

2. Investment does not depend significantly upon the __________.

1 point

a. Demand

b. level of income

c. progress of technology

d. expectation of the entrepreneur

Clear selection

3. If a person has an income of Rs.30,000 and his consumption is Rs.10,000, then his propensity to save is:

1 point

. 1.33

b. 0.33

c. 0.67

d. 1.50

Clear selection

4. Asset which has become outdated mainly due to the planning and designing being unsuitable for present day requirement of the user is an example of:

1 point

a. technological obsolescence

b. economic obsolescence

c. functional obsolescence

d. excess depreciation due to wear and tear

Clear selection

5. In which of following methods, valuer adjusts prices paid for comparable assets with subject assets to estimate value?

1 point

a. Depreciated replacement cost method

b. Discounted cash flow

c. Rule of thumb method

d. Sales comparison method

Clear selection

5. In which of following methods, valuer adjusts prices paid for comparable assets with subject assets to estimate value?

a. Depreciated replacement cost method

b. Discounted cash flow

c. Rule of thumb method

d. Sales comparison method

Clear selection

6. The Hindu Succession Act, 1956 does not apply to a ______.

1 point

a. follower of the Arya Samaj

b. Buddhist by religion

c. child both of whose parents are Jains by religion

d. person who has converted to Christianity

Clear selection

7. Which of the following is not a characteristic of the informal economy?

1 point

a. Easy entry

b. No taxes

c. Predominantly micro

d. Regulated businesses

Clear selection

8. The frequency at which one unit of currency is used to purchase domestically produced goods and services within a given time period is known as:

1 point

a. velocity of money

b. speed of money

c. momentum of money

d. count of circulation of money

Clear selection

9. In double entry system, accounts are primarily classified into __________.

1 point

a. receiver account & giver account

b. income account & expenses account

c. real accorunt & nominal account

d. personal account & impersonal account

Clear selection

10. In the absence of a Will, a person’s heirs can access control of the deceased person’s assets after obtaining a __________.

1 point

a. Inheritance claim

b. Succession certificate

c. Birth records

d. Family records

Clear selection

11. Which of the following is not an essential feature for contract of sale?

1 point

a. Presence of two parties

b. Sale of goods

c. Consideration in terms of price

d. Unconditional contract

Clear selection

12. Which of the following is true with reference to reproduction cost, under cost approach of valuation of immovable properties?

1 point

a. It is not derived using cost inflation index

b. It is derived with same utility

c. It is derived with different material of construction

d. It is derived with the same material of construction

Clear selection

13. Theories of factor of production consider_________________ to be the reward for the entrepreneur.

1 point

a. rent

b. interest

c. profit

d. capital

Clear selection

14. Which of the following approach-property combination is not a practical valuation possibility?

1 point

a. Income capitalization approach – house on lease

b. Sales comparison approach - Owner occupied

c. Cost approach –Public school

d. Income capitalization approach – owner occupied bungalow

Clear selection

15. Which one of following peril is an add-on cover in a standard fire insurance policy?

1 point

a. Earthquake

b. Aircraft damage

c. Riots

d. Storm

Clear selection

16. Which of the following is true with reference to valuation of bridges, roads and other infrastructure projects?

1 point

a. These have value-in-exchange

b. These have value to the owner

c. These have value-in-use

d. These have value to the user

Clear selection

17. For a real estate construction company, which of the following is not part of Profit and Loss statement?

1 point

a. Revenue from apartment sales

b. Interest paid to lenders

c. Cash deposited in bank

d. Depreciation expense

Clear selection

18. A market which has only one seller selling a homogeneous product to many buyers is known as:

1 point

a. oligopoly

b. monopoly

c. perfect competition

d. monopolistic competition

Clear selection

19. Which of the following statements is true in relation to obligation of insured on notification of a claim?

1 point

a. To defend the insurer

b. To indemnify the insurer

c. To investigate and settle potentially covered claim

d. Ensure liability for the damage is covered by the policy

Clear selection

20. When amount of insurance is less than the value of machinery damaged a loss payable is as per ______.

1 point

a. sum insured

b. reinstatement value

c. condition of average

d. indemnity value

Clear selection

Attempt given questions based upon the following case studies.A business man purchased a plot of 1000 Sq.mt. in a posh locality of a city in the year 1987 for a price of Rs. 30,00,000. In the year 1988, he constructed a residential bungalow having 300 Sq.mt. built up floor area at ground level and 100 Sq.mt. built up area at first floor level at the cost of Rs. 14,00,000. Prevalent replacement cost of similar bungalow as on today is Rs. 30,000 per Sq.mt. Prevalent land price in the locality at present is Rs. 60,000 per Sq.mt. Age of building is 30 years and the total life of the building is 60 years

21. What will be the depreciation amount of the bungalow by adopting constant percentage method of depreciation?

1 point

a.60,00,000

b. Rs.47,37,600

c. Rs.54,00,000

d. Rs.65,46,000

Clear selection

22. What will be the market value of the land at present?

1 point

a. Rs.240,00,000

b. Rs.600,00,000

c. Rs.480,00,000

d. Rs.410,00,000

Clear selection

23. What will be the total market value of the bungalow property for the bank loan purpose?

1 point

a. Rs.600,00,000

b. Rs.666,00,000

c. Rs.612,00,000

d. Rs.566,10,000

Clear selection

24. What is the balance economic life of the building?

1 point

a. 60 years

b. 30 years

c. 15 years

d. 45 years

Clear selection

25. Which of the following will not be considered for the estimation of present market value of above property?

1 point

a. Deprecation

b. Current Replacement cost of the building

c. Economic obsolescence

d. Current land rate

Clear selection

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