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184. Patents accounts are

Secured loan account

Nominal account

Real account

Debtors account

✅ The correct answer is C.
Patents accounts are Real account. Patent right is classified as intangible asset and appear on balance sheet, that is why it is of nature of real account. The balances of real accounts are not cancelled out at the end of an accounting period but are carried over to the next period.

1924. The term ‘marginal’ in economics means

Unimportant

Additional

The minimum unit

Just barely passing

✅ The correct answer is B.
The term ‘marginal’ in economics means Additional. In economics, the term marginal is used to indicate the change in some benefit or cost. when an additional unit is produced. For instance, the marginal revenue is the change in. total revenue when an additional unit is produced.

1925. _____ is an implicit cost of production

Wages of the labour

Charges for electricity

Interest on owned money capital

Payment for raw material

✅ The correct answer is C.
Interest on owned money capital is an implicit cost of production. The costs in which there is no cash outlay, is known as Implicit Cost.

1926. If required rate of return is 12% and per unit cost of units purchased is $35, then relevant opportunity cost of capital will be

$6.20

$7.20

$4.20

$5.20

✅ The correct answer is C.
Relevant opportunity cost of capital = Cost of units purchased × Rate of return
= $35 × 12% = $4.20

1927. _________ is a rise in the general level of prices of goods and services in an economy over a period of time.

Deflation

Inflation

Stagflation

Hyperinflation

✅ The correct answer is B.
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time.

1928. Marginal revenue will be negative if elasticity of demand is

Less than unity

More than 1

Equal to 1

Equal to zero

✅ The correct answer is A.
Marginal revenue will be negative if elasticity of demand is less than unity. At a quantity greater than ON price elasticity on the demand curve, curve is less than one and the marginal revenue is negative.

1929. An effect of interest rate risk and investment risk on a bond’s yield is classified as

reinvestment premium

investment risk premium

maturity risk premium

defaulter’s premium

✅ The correct answer is C.
An effect of interest rate risk and investment risk on a bond’s yield is classified as maturity risk premium. A maturity risk premium is the amount of extra return you’ll see on your investment by purchasing a bond with a longer maturity date.

1931. Which among the following is a limitation of traditional life insurance products?

Yields on these policies is high

Clear and visible method of arriving at surrender value

Well defined cash and savings value component

Rate of return is not easy to ascertain

✅ The correct answer is D.
Rate of return is not easy to ascertain in traditional life insurance products. A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.

1933. In quantitative analysis of estimating cost function, last and foremost step is to

evaluate variable driver

evaluate cost driver

evaluate price driver

evaluate demand driver

✅ The correct answer is B.
In quantitative analysis of estimating cost function, last and foremost step is to evaluate evaluate cost driver. A cost driver is the unit of an activity that causes the change in activity’s cost.

1935. The return component that gives periodic cash flows to the investor is known as the______________.

capital gain

interest rate

yield

unrealized gain.

✅ The correct answer is C.
The return component that gives periodic cash flows to the investor is known as the yield. Yield is the periodic cash flow (or return on investment in the form of interest or dividends).

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