Author name: Administrator

2143. The classical theory explained interest as a reward for

Parting with liquidity
Abstinence
Saving
Inconvenience
✅ The correct answer is C.
The classical theory explained interest as a reward for Saving. According to the classical theory, interest is the price paid for saving of capital. Like the value of other things, the price of saving is determined by its demand for and supply of savings.

2144. What is the special feature of a Family Floater policy?

The total sum insured floats amongst the family members
Husband/wife, children and parents/parents-in-law can be covered
Both A & B
None of the three
✅ The correct answer is C.
A family floater health insurance plan is an insurance plan that is tailor-made for families. It is quite similar to the individual health plan with an add-on benefit of providing health coverage for the entire family.

2146. Universal life insurance policy provides for partial withdrawals. This partial withdrawal was made from the policy’s _________

Loan value
Surrender Value
Paid up value
Cash value
✅ The correct answer is D.
Universal life insurance policy provides for partial withdrawals. This partial withdrawal was made from the policy’s Cash value. Cash value may also be used to pay policy premiums. If there is sufficient cash value, a policyholder can stop paying premiums out-of-pocket and have the cash value account cover the payment.

2147. When Marginal Utility is positive, Total Utility

Increases
Decreases
Remains constant
Is highest
✅ The correct answer is A.
When Marginal Utility is positive, Total Utility Decreases. When we say that the total utility is increasing at a diminishing rate, we mean that amount of change in total utility is decreasing with the consumption of every extra unit which is nothing but marginal utility.

204. A bill of exchange when drawn requires

Noting
Discounting
Acceptance
None of the above
✅ The correct answer is C.
A bill of exchange when drawn requires acceptance. By acceptance, the drawee engages himself to pay the amount from the bill of exchange to the person who will bear or hold it on the due term.

2152. If coupon rate is equal to going rate of interest then bond will be sold

at par value
below its par value
more than its par value
seasoned par value
✅ The correct answer is A.
If coupon rate is equal to going rate of interest then bond will be sold at par value. A coupon payment on a bond is the annual interest payment that the bondholder receives from the bond’s issue date until it matures. Coupons are normally described in terms of the coupon rate, which is calculated by adding the sum of coupons paid per year and dividing it by the bond’s face value.

2154. Second step in processing costing system is to

summarize total costs
compute cost for each equivalent unit
summarize flow of output
compute output in units
✅ The correct answer is D.
Second step in processing costing system is to compute output in units. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process.
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