Author name: Administrator

1523. Bonds issued by small companies tend to have

high liquidity premium
high inflation premium
high default premium
high yield premium
✅ The correct answer is A.
Bonds issued by small companies tend to have high liquidity premium. Liquidity premium is a premium demanded by investors when any given security cannot be easily converted into cash for its fair market value. When the liquidity premium is high, the asset is said to be illiquid, and investors demand additional compensation for the added risk of investing their assets over a more extended period since valuations can fluctuate with market effects.

135. Salaries paid in advance should be shown on

Asset side of the Balance sheet
Liability side of the Balance sheet
Credit side of the Trading account
All of the above
✅ The correct answer is A.
Salaries paid in advance should be shown on Asset side of the Balance sheet. An advance paid is recorded as a current asset in the company’s balance sheet.

1496. What are the parts of a policy bond?

Policy schedule
Standard provisions
Specific provisions
All of the above
✅ The correct answer is D.
Policy schedule, Standard provisions and Specific provisions are the parts of a policy bond.

1499. When does a claim arise under an insurance policy?

Whenever the policyholder feels the need for money
When the insured events happen
When a premium is not paid
Whenever any of the three things mentioned above happen
✅ The correct answer is B.
A claim arise under an insurance policy When the insured events happen. The indemnity only applies to claims, arising out of accident occurring in the insured premises during the Period of Insurance, first made in writing against the Insured and notified to the Company by the Insured in writing during the Policy Period or applicable extended reporting period.
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