44. Markets in which corporations raise capital for creating market transaction which are classified as

by
A) commercial markets
B) residential markets
C) primary markets
D) consumer credit loans
✅ ANSWER: C
Markets in which corporations raise capital for creating market transaction which are classified as primary markets. The primary market is where securities are created. It’s in this market that firms sell (float) new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market.

40. As output increases, AC curve

by
A) Falls
B) Rises
C) Remains constant
D) All of the above
✅ ANSWER: D
The average cost is U-shaped because an increase in output increases the returns and reduces the total cost. As the curve continues to slope downwards, it enters a phase of constant returns where the returns and output are at their optimum level. After the constant level, continued increase in output stops yielding any further increments in the returns (diminishing returns) and the costs begin to rise, forcing the curve to start sloping upwards.

77. Which one of the following is the task of the Planning Commission?

by
A) Preparation of the plan
B) Implementation of the plan
C) Financing of the plan
D) None of the above
✅ ANSWER: A
Preparation of the plan is the task of the Planning Commission. The Planning Commission is charged with the responsibility of making assessment of all resources in the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities.

74. _________ as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product or service. Such act is carried out with the intent of earning remuneration.

by
A) Marketing
B) Selling
C) Advertising
D) Promotion
✅ ANSWER: B
Selling as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product or service. Such act is carried out with the intent of earning remuneration.

68. Which is not the product of general insurance?

by
A) Motor insurance
B) Personal accident insurance
C) Medical and health insurance
D) Life insurance
✅ ANSWER: D
Life insurance is not the product of general insurance. General Insurance is a contract of indemnity which promises to make good your losses. In Life Insurance, the sum assured along with benefits is paid either on the event of death of the policy holder or on maturity of the policy.

65. Risk of fall in income due to fall in interest rates in future is classified as

by
A) income risk
B) investment risk
C) reinvestment risk
D) mature risk
✅ ANSWER: C
Risk of fall in income due to fall in interest rates in future is classified as reinvestment risk. Reinvestment risk is the probability that an investor will be unable to reinvest cash flows (e.g., coupon payments) at a rate comparable to the current investment’s rate of return.