Financial Markets and Instruments

This is not the form of dividend. The kind means that dividend is given in form of goods or assets other than cash, which is not possible.

This is not any type of dividend policy, which is followed by the company.

It is external source of finance. In public deposits, the funds are accepted from the public in the form of deposits. As the public has deposited the funds, which is an outside party, it is an external source of finance. The deposits are to be paid back to the public.

Type of error: Incorrect usage of 'Although not giving'. The sentence has a misplaced modifier as what does not give quite as much return is not answered. So, a pronoun 'it' needs to be introduced. Correct usage is 'Although it does not give'.

Actionable claim is a claim to any debt, other than a debt secured by mortgage or pledge. Actionable claim is a claim to any beneficial interest not in the possession of the claimant.

In non-traditional plans, protection and saving elements were separated.

An ordinary annuity is a series of equal payments made at the end of each period for a fixed period of time.

In Current Money Method, the returns depend on when the investment was made and the rate that was secured at the time of investment. It has also been called segmented or investment block method as different investment blocks get different returns. Hence, all the given statements about Current Money Method are correct.

Switching is the special feature of Unit Linked Policy that allowed change from one fund to another.

Retirement planning involves three phases:

1. Accumulation
2. Conservation
3. Distribution Inflation is not a phase of retirement planning. 

Underwriting is not a reason for proper financial planning.

A deferred annuity is where periodic benefits are scheduled to begin after a period, say at least 12 months after the date of purchase of the annuity. Every deferred annuity in turn has two periods – an accumulation period between when the annuity is purchased and the annuity payments begin, and a payout or liquidation period during which the insurer makes the annuity payments.

Reversionary bonus is the bonus declared every year as a percentage of (Guaranteed Maturity Benefit/Sum Assured + Earlier Reversionary Bonuses). It is payable on death of the life assured or maturity of the policy.

An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.

Amount of annuity payable is inversely related to duration of annuity payments. The larger the annuity paid, the lesser the duration of annuity payments.