Citizen Investment Trust (CIT) — Practice Quiz (Set 4)By sushil / October 6, 2026 Citizen Investment Trust (CIT) — Practice Quiz (Set 4) 10 questions · 15 minute time limit Start Quiz You can take this quiz as a guest. Log in first if you want it saved to your progress history. Citizen Investment Trust (CIT) was established under which legislation? Insurance Act, 2049 Citizen Investment Trust Act, 2047 Securities Act, 2063 Companies Act, 2063 Which of the following best describes CITu2019s core function as a u201ccontractual savings institutionu201d? It accepts current account deposits like a commercial bank It mobilizes long-term, regular savings from individuals and institutions through scheme-based contracts It exclusively sells non-life insurance policies It issues currency notes CITu2019s u201cCitizen Unit Schemeu201d primarily functions as a: Fixed deposit account Unit trust type investment scheme pooling investorsu2019 money into a diversified portfolio Government treasury bond Life insurance policy Besides managing its own savings schemes, CIT also acts as a trustee for which of the following, particularly for organizations lacking their own arrangement? Employeesu2019 provident funds Corporate tax returns Company share registries Insurance claim settlements Contributions to a CIT-managed Approved Retirement Fund are attractive to salaried employees mainly because such contributions: Guarantee a fixed high return regardless of market conditions Receive favorable tax treatment as retirement savings under the Income Tax Act framework Can be withdrawn at any time with no conditions Are fully insured against market loss by Nepal Rastra Bank In a unit trust or mutual fund scheme such as those CIT manages, the u201cNet Asset Value (NAV)u201d per unit represents: The face value of the unit set at issue The market value of the fundu2019s total assets minus liabilities, divided by the number of outstanding units The dividend declared per unit for the year The brokerage commission charged on each transaction Compared to an ordinary bank savings account, a CIT contractual savings scheme is typically structured around: Unlimited daily withdrawals with a debit card Regular periodic contributions over a defined tenure, with benefits paid at maturity No returns on the amount saved Overnight interbank lending A key difference between CIT and Karmachari Sanchaya Kosh (EPF) is that: CIT is compulsory for all employees while EPF is entirely voluntary EPF is a compulsory social security fund mainly for defined categories of employees, while CIT offers voluntary contractual savings and investment schemes to the general public They are simply two names for the same institution CIT serves only government employees A core investor benefit of pooling money into a unit trust scheme such as CITu2019s is: Avoiding tax obligations entirely Risk diversification and access to professional fund management for small investors Guaranteed capital protection with zero risk Direct voting control over every company invested in As a long-term institutional investor, CITu2019s investment activity in the capital market primarily contributes to: Reducing overall market liquidity Channeling public and institutional savings into productive investment and supporting capital market development Directly setting interest rates for the whole economy Replacing the stock exchangeu2019s trading function Submit Quiz
