1094. The general need for a pension policy results from the existence of what key problem?

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Anticipated fall in income
Lack of employment opportunities
Likely deterioration in health
Uncertainty over investment performance
✅ The correct answer is A.
The general need for a pension policy results from the existence of anticipated fall in income. Anticipated Income is the amount of income the applicant can reasonably be expected to receive during the calendar year.

1093. Profit margin multiply assets turnover multiply equity multiplier is used to calculate

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return on turnover
return on stock
return on assets
return on equity
✅ The correct answer is D.
Profit margin multiply assets turnover multiply equity multiplier is used to calculate return on equity. Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders’ equity.

1092. Which of the following cannot be categorised under risk?

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Dying too young
Dying too early
Natural wear and tear
Living with disability
✅ The correct answer is C.
Dying too early cannot be categorised under risk. Each individual has got a certain financial value attached to his life in the form of his earning potential. If he dies at a young age or during the time when he had an earning potential his family suffers a financial loss in the form of loss of his potential earnings. A lot of his obligations towards the family remain unfulfilled due to his sudden demise. This is called the Risk of Dying too early and it can be protected against by taking life insurance coverage.

99. Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?

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Purchases book
Sales book
Bills receivable book
Cash Book
✅ The correct answer is D.
Cash Book serves the purpose of ledger too, in addition to the recording of accounting transaction. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.

1090. Loans by finance companies, banks and credit unions is classified as

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consumer credit loans
dollar bonds
Eurodollar market deposits
euro bonds
✅ The correct answer is A.
Loans by finance companies, banks and credit unions is classified as consumer credit loans. Consumer credit is personal debt taken on to purchase goods and services. A credit card is one form of consumer credit.

1089. In financial planning, most high option price will lead to

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longer option period
smaller option period
lesser price
higher price
✅ The correct answer is A.
In financial planning, most high option price will lead to longer option period. option period is a time frame or period of time, which is valid for an option to be exercised before or on the expiration date. On the expiration date, the investor no longer has a choice but has to exercise the option.

1088. Cost of money is affected by factors which includes

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production opportunities
risk
all of above
inflation
✅ The correct answer is D.
Cost of money is affected by factors which includes inflation. The cost of money changes with variance in interest rates, and is used to gauge the opportunity costs involved in the potential investment of that money in securities or other assets.

97. A current asset that is convertible to cash within 3 months can be referred to as

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Cash asset
Operating asset
Intangible assets
Cash equivalent
✅ The correct answer is D.
A current asset that is convertible to cash within 3 months can be referred to as Cash equivalent. Cash and cash equivalents refer to the line item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately.

1102. In decreasing-term insurance, the premiums paid _________ over time.

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Increase
Decrease
Remain constant
Are returned
✅ The correct answer is C.
In decreasing-term insurance, the premiums paid remain constant over time. Decreasing term insurance is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate. Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually.