Author name: Administrator

1692. Which one of the following statements is true with regard to Children’s policies?

On vesting, the insured person has an option to change the term of the policy
On vesting the insured person has an option to increase the SA
Both the statements above are wrong
Both the statements above are correct
✅ The correct answer is C.
On vesting, the insured person doesnt have an option to change the term of the policy and to increase the SA.

1693. In capital asset pricing model, characteristic line is classified as

regression line
probability line
scattered points
weighted line
✅ The correct answer is A.
In capital asset pricing model, characteristic line is classified as regression line. The Regression Line is the line that best fits the data, such that the overall distance from the line to the points (variable values) plotted on a graph is the smallest.

160. The expenses that have fallen due for payment but not paid are

Outstanding expenses
Deffered expenses
Accrues expenses
Prepaid expenses
✅ The correct answer is A.
The expenses that have fallen due for payment but not paid are Outstanding expenses. Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made.

1699. An unsecured bond that provides no lien against property as security for bond obligation is classified as

secured bond
debenture
obligation bond
specific bond
✅ The correct answer is B.
An unsecured bond that provides no lien against property as security for bond obligation is classified as debenture. A debenture is a type of debt instrument that is not secured by collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.

1702. Public key cryptography is also known as _________ cryptography.

Private key
Symmetric
Asymmetric
None
✅ The correct answer is C.
Public key cryptography is also known as Asymmetric cryptography. Asymmetric cryptography, also known as public key cryptography, uses public and private keys to encrypt and decrypt data. The keys are simply large numbers that have been paired together but are not identical (asymmetric). One key in the pair can be shared with everyone; it is called the public key.

1704. If coupon rate is more than current rate of interest then bond will be sold

More than its par value
Seasoned par value
At par value
Below its par value
✅ The correct answer is A.
A bond’s interest rate is related to the current prevailing interest rates and the perceived risk of the issuer. When interest rates are less than the coupon rate, the bond can be sold at a premium (higher than the face value). When current interest rates are greater than a bond’s coupon rate, the bond will sell below its face value at a discount.
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