821. Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use _________ for underwriting. Choose the most appropriate option.

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Judgment method
Numerical method
Any of the above method since an illness like diabetes does not play a major role in the underwriting process
Neither of the above method as diabetes cases are rejected outright
✅ The correct answer is A.
Sheena is suffering from acute diabetes. She has applied for an insurance plan. In this case the underwriter is most likely to use Judgment method for underwriting. The judgment method is generally used where a single factor is to be considered or where the decision for acceptance or rejection is to be taken.

820. Firms that specialize in helping companies raise capital by selling securities are called ________.

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commercial banks
investment banks
savings banks
credit unions
✅ The correct answer is B.
Firms that specialize in helping companies raise capital by selling securities are called investment banks. An investment bank (IB) is a financial intermediary that performs a variety of services.

836. What is the essential purpose of Life Insurance?

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It is tax rebates
It is a good investment
It is protection for loss of economic value of human life in the event of death or disability
It leads to wealth accumulation
✅ The correct answer is C.
The essential purpose of Life Insurance is protection for loss of economic value of human life in the event of death or disability. The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.

832. In perfect competition, the firm’s _____ above AVC has the identical shape of the firm’s supply curve

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Marginal revenue curve
Marginal cost curve
Average cost curve
None of the above
✅ The correct answer is B.
In perfect competition, the firm’s Marginal cost curve above AVC has the identical shape of the firm’s supply curve. Under perfect competition average revenue is equal to marginal revenue, so the firm will produce up to that point where marginal revenue and marginal cost are equal. Short run supply curve of a perfectly competitive firm is that portion of marginal cost curve which is above average variable cost curve.