Every Year
After 5 Year
After 3 year
After 15 year
✅ The correct answer is C.
Agent’s license is to be renewed after every 3 year.
Agent’s license is to be renewed after every 3 year.
933. In a money back plan, what is the death claim payable?
Sum insured
Sum insured less survival benefits paid already
Bonus
Nothing is payable
✅ The correct answer is A.
In a money back plan, Sum insured is the death claim payable. Money-back plans usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death.
In a money back plan, Sum insured is the death claim payable. Money-back plans usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death.
914. Identify the correct statement in the following.
In determination of premium higher the rate of interest assumed the lower is the premium
In determination of premium higher the rate of interest assumed higher is the premium
In determination of premium lower the rate of interest assumed lower is the premium
Premium is not determined by rate of interest assumed to be earned by the insurer
✅ The correct answer is A.
In determination of premium higher the rate of interest assumed the lower is the premium.
In determination of premium higher the rate of interest assumed the lower is the premium.
912. An option which can be exercised any desired time before an expiry date is classified as
Australian option
money option
European option
American option
✅ The correct answer is D.
An option which can be exercised any desired time before an expiry date is classified as American option. An American option is a put option or call option that can be exercised at any time on or before its expiration date.
An option which can be exercised any desired time before an expiry date is classified as American option. An American option is a put option or call option that can be exercised at any time on or before its expiration date.
910. Operating leverage examines.
The effect of the change in the quantity on EBIT
The effect of the change in EBIT on the EPS of the company
The effect of the change in output to the EPS of the company
The effect of change in EPS on the output of the company
✅ The correct answer is A.
Operating leverage examines the effect of the change in the quantity on EBIT. Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variable costs has high operating leverage.
Operating leverage examines the effect of the change in the quantity on EBIT. Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variable costs has high operating leverage.
908. When a market is in equilibrium
No shortage exists
Quantity demanded equals quantity supplied
A price is established that clears the market
All of the above are correct
✅ The correct answer is D.
When a market is in equilibrium No shortage exists, Quantity demanded equals quantity supplied and A price is established that clears the market.
When a market is in equilibrium No shortage exists, Quantity demanded equals quantity supplied and A price is established that clears the market.
906. Stationary layout is suitable for manufacturing ___________.
small products
light products
bulky products
technical items
✅ The correct answer is C.
Stationary layout is suitable for manufacturing bulky products. In case of production of large variety of non-standardized products, process layout is ideal.
Stationary layout is suitable for manufacturing bulky products. In case of production of large variety of non-standardized products, process layout is ideal.
82. When will the bill mature if the date of maturity of a bill is a holiday
Holiday itself
Other agreed day
Preceding working day
Next working day
✅ The correct answer is C.
Preceding working day the bill will mature if the date of maturity of a bill is a holiday, where the date of maturity is a public holiday, the instrument will become due on the preceding business day.
Preceding working day the bill will mature if the date of maturity of a bill is a holiday, where the date of maturity is a public holiday, the instrument will become due on the preceding business day.
904. If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as
applied indirect cost
applied direct cost
incurred indirect cost
over allocated indirect cost
✅ The correct answer is D.
If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as over allocated indirect cost because the allocated amount is less than actual amount.
If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as over allocated indirect cost because the allocated amount is less than actual amount.
903. Reinvestment risk of bonds is usually higher on
income bonds
callable bonds
premium bonds
default free bonds
✅ The correct answer is B.
Reinvestment risk of bonds is usually higher on callable bonds. A callable bond is a bond that can be redeemed by the issuer prior to its maturity.
Reinvestment risk of bonds is usually higher on callable bonds. A callable bond is a bond that can be redeemed by the issuer prior to its maturity.