103. Miller- Orr Model is suitable in those circumstances when the ________.

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A) Demand for cash is steady
B) Demand for cash is not steady
C) Carry cost and transaction cost are to be kept at minimum
D) Demand for cash is variable
✅ ANSWER: D
The Miller-Orr model of cash management is developed for businesses with uncertain cash inflows and outflows. This approach allows lower and upper limits of cash balance to be set and determine the return point (target cash balance).

100. Slope coefficient of beta is classified statistically significant if its probability is

by
A) greater than 5%
B) equal to 5%
C) less than 5%
D) less than 2%
✅ ANSWER: C
Slope coefficient of beta is classified statistically significant if its probability is less than 5%. A standardized beta coefficient compares the strength of the effect of each individual independent variable to the dependent variable.

97. In order for the policy to acquire a guaranteed surrender value, for how long must the premium be paid as per law?

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A) Premiums must be paid for least 2consecuitve years
B) Premiums must be paid for least 3consecuitve years
C) Premiums must be paid for least 4consecuitve years
D) Premiums must be paid for least 5consecuitve years
✅ ANSWER: B
In order for the policy to acquire a guaranteed surrender value, Premiums must be paid for at least 3 consecuitve years the premium be paid as per law.

92. If two goods were perfect substitutes of each other, it necessarily follows that

by
A) An indifference curve relating the two goods will be curvilinear
B) An indifference curve relating the two goods will be linear
C) An indifference curve relating the two goods will be divided into two segments which meet at a right angle
D) An indifference curve relating the two goods will be convex to the origin
✅ ANSWER: B
If two goods were perfect substitutes of each other, it necessarily follows that an indifference curve relating the two goods will be linear. As price rises for a fixed money income, the consumer seeks the less expensive substitute at a lower indifference curve.

89. Who is an inpatient seeking medical attention for his medical problem?

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A) He is a patient who receives medical attention without admission in a hospital
B) He is after admission in a hospital receiving medical attention and treatment while being there
C) He is a day care patient for treatment
D) He is a patient in a house receiving care of doctors
✅ ANSWER: B
An inpatient seeking medical attention for his medical problem after admission in a hospital receiving medical attention and treatment while being there.

83. If payment of security is paid as Rs 100 at end of year for three years, it is an example of

by
A) fixed payment investment
B) lump sum amount
C) fixed interval investment
D) annuity
✅ ANSWER: D
If payment of security is paid as Rs 100 at end of year for three years, it is an example of annuity. An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments and, in return, obtain regular disbursements beginning either immediately or at some point in the future.

14. Depreciable amount + Residual value of a fixed asset = ?

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A) Depreciation expenses
B) Accumulated depreciation
C) Cost of the fixed asset
D) Future economic benefits of a fixed asset
✅ ANSWER: C
Depreciable amount + Residual value of a fixed asset = Cost of the fixed asset. Fixed assets are depreciated only to the extent of their depreciable amount, which equals cost minus the salvage value.

79. During planning period, a marginal cost for raising a new debt is classified as

by
A) debt cost
B) relevant cost
C) borrowing cost
D) embedded cost
✅ ANSWER: B
During planning period, a marginal cost for raising a new debt is classified as relevant cost. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.