Financial literacy

1. Novation aims to obviate the ________ risk. A. Interest rate B. Maturity C. Default D. Longevity 2. If an Indian Resident changes his/her status to nonresident Indian, their investments in Public Provident Fund __________. A. Will have to be redeemed immediately. B. Can continue until maturity and fresh investments will be permitted C. Can continue till maturity but no fresh investments will be permitted D. The principal amount will have to be withdrawn immediately, but the accrued interest can continue till maturity 3. The CEO of which Berkshire Hathaway-owned company was fired for his alleged insider trading activity? A. Net Jets B. BYD C. MidAmerican Energy D. Dairy Queen 4. Which company was widely assumed to be afflicted by the Osborne Effect, recently? A. Google B. Amazon C. Facebook D. Apple 5. Which is the world’s second-most valued Unicorn (after Uber)? A. Didi Chuxing B. Xiaomi C. Airbnb D. Palantir Technologies Solutions 1. C. It refers to the act of replacing a party to an agreement with a new party. Here, the clearing house acts as a counter-party for every transaction on recognised exchanges, thereby largely eliminating the default risk. 2. B. 3. C. The CEO, David Sokol, was embroiled in an insider-trading scandal pertaining to Lubrizol. 4. D. It alludes to the unintended consequences of a company’s announcement of a future product, which inadvertently impacts the sales of its current product. This is suspected to have happened to the current model of the iPhone when Apple announced the impending launch of iPhone X last month. 5. A. Didi enjoys a valuation of around $50 billion. Uber, far ahead at one time, is now slightly ahead, at around $54 billion (down from a peak of $68 odd billion). The quiz master is head - marketing, PPFAS Mutual Fund Send your queries and feedback at yourmoney@bsmail.in