Author name: Administrator

1894. A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as

factorization model
Two factor model
multifactor model
quoted factor model
✅ The correct answer is C.
A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as multifactor model. A multi-factor model is a financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices.

1895. The expansion of EAR is?

equivalent annual rate
equivalent annuity rate
equally applied rate
equal advance rate
✅ The correct answer is A.
The expansion of EAR is equivalent annual rate. The Effective Annual Rate (EAR) is the interest rate that is adjusted for compounding over a given period. Simply put, the effective annual interest rate is the rate of interest that an investor can earn (or pay) in a year after taking into consideration compounding.

1896. Bonds with deferred call have protection which is classified as

provision protection
provision protection
deferred protection
call protection
✅ The correct answer is D.
Bonds with deferred call have protection which is classified as call protection. A call protection is a protective provision of a callable security prohibiting the issuer from calling back the security for a specified period of time.

1897. In order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.

arithmetic mean
geometric mean
calculus mean
arithmetic median
✅ The correct answer is B.
In order to determine the compound growth rate of an investment over some period, an investor would calculate the geometric mean. The geometric mean is the average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio.

1899. The cash management refers to management of ___________.

cash only
cash and bank balances
cash and near cash assets
fixed assets
✅ The correct answer is C.
The cash management refers to management of cash and near cash assets. Cash management is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company’s financial stability.

1900. Standard typewriter which operates through electricity is _______.

portable typewriter
electronic typewriter
mini typewriter
macro typewriter
✅ The correct answer is B.
Standard typewriter which operates through electricity is electronic typewriter. Electrical typewriter designs removed the direct mechanical connection between the keys and the element that struck the paper.

1902. New York Stock Exchange’ is an example of

capital markets
money markets
liquid markets
short-term markets
✅ The correct answer is A.
New York Stock Exchange’ is an example of capital markets. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital. Capital markets consist of the primary market, where new securities are issued and sold, and the secondary market, where already-issued securities are traded between investors.

1904. Time wages are paid on the basis of ________.

actual time
standard time
time saved
overtime
✅ The correct answer is A.
Time wages are paid on the basis of actual time. In this system of wage payment, the workers are paid the wages on the basis of time as, per hour, per day, per week, per fortnight or per month etc. This system does not consider the production of the employees during this time.

1887. In which of the following cases is insurable interest not present?

A person insuring his own life
A father taking out a life policy on the life of his son
A person insuring his colleague
An employer taking a life insurance policy on his employees
✅ The correct answer is C.
For purposes of life insurance, everyone is considered to have an insurable interest in their own lives as well as the lives of their spouses and dependents. Employer also has an insurable interest on the life of his employees. Insurable interest is not present in the life of a colleague.
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