166. Chance of happening any unfavourable event in near future is classified as

by
A) chance
B) event happening
C) probability
D) risk
✅ ANSWER: D
Chance of happening any unfavourable event in near future is classified as risk. In broad terms, risk involves exposure to some type of danger and the possibility of loss or injury. In general, risks can apply to your physical health or job security. In finance and investing, risk often refers to the chance an outcome or investment’s actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment.

22. Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?

by
A) FIFO
B) LIFO
C) AVCO or averrage cost
D) Moving average
✅ ANSWER: B
LIFO inventory costing methods is supposed to issue the most recently purchased goods. LIFO, which stands for last-in-first-out, is an inventory valuation method which assumes that the last items placed in inventory are the first sold during an accounting year.

160. In an ordinary annuity, payments are made or received _________ of each period.

by
A) At the beginning
B) At the end
C) On maturity
D) 6 months before expiry
✅ ANSWER: B
An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. While the payments in an annuity can be made as frequently as every week, in practice, ordinary annuity payments are made monthly, quarterly, semi-annually or annually.

192. Which of the following denotes the underwriter’s role in an insurance company?

by
A) Process claims
B) Decide acceptability of risks
C) Product design architect
D) Customer relations manager
✅ ANSWER: B
the underwriter’s role in an insurance company is to decide acceptability of risks. Underwriters work in several insurance categories, including health, life, auto and home. Their job is to review applications for insurance, analyze risks and decide whether the company will offer coverage. Underwriters must approve applications so that the insurance company can collect premiums.

190. A risk associated with project and way considered by well diversified stockholder is classified as

by
A) expected risk
B) beta risk
C) industry risk
D) returning risk
✅ ANSWER: B
A risk associated with project and way considered by well diversified stockholder is classified as beta risk. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta risk is the probability that a false hypothesis will be accepted by a statistical test.

186. The exception to law of demand is

by
A) Veblen goods
B) Giffen goods
C) Both ‘a’ and ‘b’
D) None
✅ ANSWER: C
The exception to law of demand is Veblen goods and Giffen goods.
Giffen goods are the inferior goods whose demand increases with the increase in its prices. There are several inferior commodities, much cheaper than the superior substitutes often consumed by the poor households as an essential commodity. Whenever the price of the Giffen goods increases its quantity demanded also increases because, with an increase in the price, and the income remaining the same, the poor people cut the consumption of superior substitute and buy more quantities of Giffen goods to meet their basic needs.
Another exception to the law of demand is given by the economist Thorstein Veblen, who proposed the concept of “Conspicuous Consumption.” According to Veblen, there are a certain group of people who measure the utility of the commodity purely by its price, which means, they think that higher priced goods and services derive more utility than the lesser priced commodities.

184. The ___________ co-operative societies are started to help lower and middle class people.

by
A) Consumers
B) Producers
C) Marketing
D) Housing
✅ ANSWER: A
The Consumers co-operative societies are started to help lower and middle class people. These societies protect the weaker sections from exploitation by profit hungry businessmen. The society makes bulk purchases directly from the producers and sells these goods to the members on retail basis.