Author name: Administrator

2072. Bonus under Halsey plan is paid ________.

at 50% of time saved
at 75% of time saved
at 80% of time saved
at 90% of time saved
✅ The correct answer is A.
Bonus under Halsey plan is paid at 50% of time saved. The usual bonus share paid to the worker is 50% of the time saved multiplied by the rate per hour (time-rate).

2074. Reinvestment risk of bonds is higher on

short maturity bonds
high maturity bonds
high premium bonds
high inflated bonds
✅ The correct answer is A.
Reinvestment risk of bonds is higher on short maturity bonds. Short-term bond funds are mutual funds that invest in bonds with a maturity period less than 5 years.

2078. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is

Zero
Infinite
Equal to 1
Greater than 0 but less than 1
✅ The correct answer is B.
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is Infinite. The horizontal supply curve shows another extreme case, i.e., that of perfectly inelastic supply. The implication of such a supply curve is that a little price cut will cause the quantity supplied to fall to zero while a slightest increase in price will induce purchasers to offer an infinitely large quantity.

2073. Pick out the correct statement.

Extension of premium paying period is normally allowed as an alteration in a policy
Increase in sum assured will be welcomed as a preferred alteration in a policy
Splitting of a policy into two or more is allowed as an alteration
Notice is not always necessary in an assignment to be given by the assured to the insurer
✅ The correct answer is C.
Splitting of a policy into two or more is allowed as an alteration. There are many alterations in insurance policies that can be noted on the certificates. Any variation to the text of a life insurance policy, including a correction, is known to insurance professionals as `Alteration’. A policy evidences a life insurance contract between the insured and the insurer.

2063. State the correct statement

Survey and inspection of property is essential before acceptance of risk to assess the risk for rating purpose
To find out the true value of asset
To find out how the asset came into the owner’s possession
To know whether any other property in the neighbourhood can be insured
✅ The correct answer is A.
Survey and inspection of property is essential before acceptance of risk to assess the risk for rating purpose. Surveys give you objective information on commercial or residential properties and their potential exposure to loss.

2057. Shareholder wealth in a firm is represented by___________.

the number of people employed in the firm
the book value of the firm’s assets less the book value of its liabilities
the amount of salary paid to its employees
the market price per share of the firms common stock
✅ The correct answer is D.
Shareholder wealth in a firm is represented by the market price per share of the firms common stock. Shareholder wealth is defined as the present value of the expected future returns to the owners (that is, shareholders) of the firm.
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