1367. Method of matching orders by posting orders of buying and selling is classified as

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electronic communication network
electronic dealer network
electronic stock network
electronic order network
✅ The correct answer is A.
Method of matching orders by posting orders of buying and selling is classified as electronic communication network. An electronic communication network (ECN) is a computerized system that automatically matches buy and sell orders for securities in the market.

120. Prepaid expenses are considered as

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Asset
Liability
Loss
Capital
✅ The correct answer is A.
Prepaid expenses are considered as Asset. Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired. The amount of prepaid expenses that have not yet expired are reported on a company’s balance sheet as an asset.

1363. In financial planning, a higher strike price leads to call option

by
price is higher
rate is lower
price is lower
rate is higher
✅ The correct answer is C.
In financial planning, a higher strike price leads to call option price is lower. Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

1362. Young persons are charged lower premium as compared to older persons because

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Young persons may not have much income to pay for the insurance
Older persons can afford to pay more for their insurance
Younger persons have lower mortality on account of lower age
Younger the age higher the mortality
✅ The correct answer is C.
Young persons are charged lower premium as compared to older persons because younger persons have lower mortality on account of lower age. For example, a racecar driver faces an increased risk of death and, as a result, may pay high life insurance premiums or be denied coverage.

1361. Which element of a valid contract deals with premium?

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Offer and acceptance
Consideration
Free consent
Capacity of parties to contract
✅ The correct answer is B.
Consideration of a valid contract deals with premium. A consideration is an exchange of money for the guarantee of an act preformed or another benefit provided. In the context of insurance, the insurance company gives the consideration of coverage for losses as long as premiums are paid.

118. Accounts receivable & inventory are the examples of

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Current assets
Liquid asset
Fixed asset
Capital asset
✅ The correct answer is A.
Accounts receivable & inventory are the examples of Current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Current assets are important to businesses because they can be used to fund day-to-day business operations and to pay for the ongoing operating expenses.