L&B Mock Test 3

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L&B Mock Test 3

All India Valuers Association L&B Mock Test 3

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1. Which of the following factors is not physical factor but affects the valuation of a subject property?

1 point

a. Damages to the building

b. Gross Domestic Product

c. Property location

d. Neighbourhood properties

Clear selection

2. Difference between selling price and variable cost per unit can be classified as______ per unit.

1 point

a. contribution margin

b. interest margin

c. rent margin

d. profit margin

Clear selection

3. When proportionate change in price is equal to proportionate change in quantity demanded of any commodity, then such demand is called:

1 point

a. unitary elastic demand

b. relatively elastic demand

c. relatively inelastic demand

d. cross elasticity

Clear selection

4. Which chapter of the Constitution of India is non-justiciable in a court of law?

1 point

a. Preamble

b. Fundamental rights

c. Fundamental duties

d. Directive Principles of State Policy

Clear selection

5. While valuation of real-estate properties, dual rates are used generally for______properties.

1 point

a. Freehold

b. Leasehold

c. Tenants occupied

d. Property with a claim dispute

Clear selection

6. An asset is officially appraised and priced on _____.

1 point

a. verification date

b. valuation date

c. report date

d. effective date

Clear selection

7. Section 247(2) of the Companies Act 2013, any valuation undertaken should not be carried out using a method that is _______.

1 point

a. an internationally accepted valuation methodology

b. adopted by any valuation professional organisation

c. specified by Reserve Bank of India, Securities and Exchange Board of India or any other statutory regulatory body

d. customized to client needs

Clear selection

8. Which chapter of the Constitution of India is non-justiciable in a court of law?

1 point

a. Preamble

b. Fundamental rights

c. Fundamental duties

d. Directive Principles of State Policy

Clear selection

9. A contract to perform the promise, or discharge the liability, of a third person in case of default is known as

1 point

a. Contract of indemnity

b. Contract of guarantee

c. Contingent contract

d. Quasi contract

Clear selection

10. Which of the following is not conforming to the definition of annuity?

1 point

a. Interest on fixed deposit

b. Yield on G- sec

c. Return on one year term fixed deposit

d. Annual return on investment

Clear selection

11. When proportionate change in price is equal to proportionate change in quantity demanded of any commodity, then such demand is called:

1 point

a. unitary elastic demand

b. relatively elastic demand

c. relatively inelastic demand

d. cross elasticity

Clear selection

12. Which of the following statement is not true with reference to fair value measurement under Ind AS 113?

1 point

a. Fair value represents an exit price and is not an entry price

b. Fair value is market based measurement and not an entity specific measurement

c. Estimation of fair value based on Highest and best use premise

d. Fair value measurement is adjusted for transaction costs

Clear selection

13. A contract to perform the promise, or discharge the liability, of a third person in case of default is known as:

1 point

a. Contract of indemnity

b. Contract of guarantee

c. Contingent contract

d. Quasi contract

Clear selection

14. Valuer may generally be invited under following capacity in Court:

1 point

a. to cross examine the valuer of the other side

b. to take the examination in chief of valuer of the other side

c. to question the advocate of the other side

d. to appear as an expert witness in court

Clear selection

15. 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

16. To what amount will Rs. 1 invested at 6 per cent compound interest accumulate in 4 years?

1 point

a. Rs. 0.982

b. Rs. 1.263

c. Rs.1.350

d. Rs.1.500

Clear selection

17. In case of a __________, the duty is one imposed by the law and is owed to the community at large.

1 point

a. contingent contract

b. Cecile agreement

c. government tender

d. tort

Clear selection

18. With reference to the Arbitration and Conciliation Act, 1996, if the parties fail to determine number of arbitrators, which statement holds true?

1 point

a. The arbitral tribunal shall consist of sole arbitrator only.

b. The civil court shall take the cognizance of the matter.

c. The arbitral tribunal shall consist of a judge not less than the rank of a High Court Judge.

d. The arbitral tribunal shall consist of a judge not less than the rank of a District Judge.

Clear selection

19. The Supreme Court observed that this value is “unaffected by the special needs of a particular purchaser” in __________ case.

1 point

a. R.C. Cooper Vs. Union of India (1970)

b. CWT Vs. P.N. Sikand (1977)

c. Wenger & Co. Vs. DVO (1978)

d. Jawajee Nagnathan Vs. Revenue Divisional Officer (1994)

Clear selection

20. Demand for real estate in a specific location is not influenced by which of the following?

1 point

a. Price of housing

b. Demand for automobiles

c. Cost of borrowing

d. Consumer’s preference

Clear selection

21. A Tort is right:

1 point

a. in rem

b. in personam

c. in recission

d. in novation

Clear selection

Attempt given questions based upon the following case studies.An owner purchased a piece of land measuring about 350 m² and constructed a bungalow of ground and one upper floor for his personal use some 30 years back. The bungalow is of first-class construction having a future economic life of 40 years and has got the total built-up area of 300 m². The owner now desires to sale the same and has received an offer of Rs.55lakhs with vacant possession or in the alternative he has been offered a gross yearly rent ofRs.2,00,000 for the bungalow and the plot together. There is good demand for such property in the locality. Other information is as follows:Value of land in the locality for similar plots = Rs.8000 per sq.m. Present replacement cost of such a bungalow = Rs.15,000 per sq.m. Total outgoings = 15 per cent of the gross rentAnnual sinking fund for redemption of Re. 1 at 5 per cent in 70 years = 0.0017Amount of Re. 1 per annum in 30 years at 5 per cent= Rs.66.439 Year’s purchase at 3% in perpetuity = 33.33

22. What is the amount of depreciation of the bungalow?

1 point

a. 42.86 %

b. 11.29 %

c. 15.30 %

d. Zero Ans.

Clear selection

23. What will be the depreciated replacement cost of the bungalow?

1 point

a. Rs.39,91,950

b. Rs.38,11,500

c. Rs.35,12,250

d. Rs.45,00,000

Clear selection

24. What will be the insurable value for reinternment policy?

1 point

a. Rs.39,91,950

b. Rs.45,00,000

c. Rs.65,00,000

d. Rs.38,11,500

Clear selection

25. What will be the market value of the property by income approach?

1 point

a. Rs.66,66,000

b. Rs.56,66,000

c. Rs.55,00,000

d. Rs.50,00,000

Clear selection

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