Administrator, Author at GetMCQs

1345. External factors such as expiration of basic patents and industry competition effect

patents premium

competition premium

company’s beta

expiry premium

✅ The correct answer is C.
External factors such as expiration of basic patents and industry competition effect company’s beta. A company’s beta is a measure of the volatility, or systematic risk, of a security compared to the broader market.

1346. Which of these is a private sector general insurance company in India?

New India Assurance Company Limited

Bajaj Allianz

National Insurance Company Limited

The Oriental Insurance Company

✅ The correct answer is B.
Bajaj Allianz is a private sector general insurance company in India. Bajaj Allianz General Insurance Company has become one of the top general insurance brands in India. It is the only general insurance company in India to cross the Rs. 100 Crore mark in profit in the last two years.

1347. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax

term structure

market premium

risk premium

cost of debt

✅ The correct answer is D.
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax cost of debt. In most cases, this phrase refers to after-tax cost of debt, but it also means the company’s cost of debt before taking taxes into account.

1348. Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as

priced costing

actual costing

direct costing

indirect costing

✅ The correct answer is B.
Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as actual costing. Actual costing is the recording of product costs based on the following factors: Actual cost of materials.

1350. What type of ad appears under a web page?

pop‐under ad

pop‐up ad

banner ad

discount ad

✅ The correct answer is A.
Pop‐under ad appears under a web page. A type of window that appears behind the browser window of a Web site that a user has visited. In contrast to a pop-up ad, which appears over (on top of) the browser window, a pop-under is less obtrusive as it hides behind other windows.

1352. Which of the below statement is incorrect with regards to assignment of an insurance policy?

In case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee

The assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another

It is necessary that the policyholder must give notice of assignment to the insurer

In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben

✅ The correct answer is D.
In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben is incorrect with regards to assignment of an insurance policy.

1354. Surrender value expressed as a percentage of premiums paid is called –

Guaranteed surrender value

Special surrender value

Special revival value

Minimum surrender value

✅ The correct answer is A.
Surrender value expressed as a percentage of premiums paid is called Guaranteed surrender value. The guaranteed surrender value is the amount guaranteed to the policy holder in case of voluntary termination of the policy by the policy holder before maturity.

1356. If market value is greater than book value then investors for future stock are considered as

experienced

inexperienced

pessimistic

optimistic

✅ The correct answer is D.
If market value is greater than book value then investors for future stock are considered as optimistic.

1328. The central issue of efficient markets concerns______________.

regulations

information

participants

structure

✅ The correct answer is B.
The central issue of efficient markets concerns information.

1330. Money market funds were a financial innovation partly inspired to circumvent __________.

Regulation Q, which is no longer in existence

Regulation M

Regulation D

Regulation B, which is still in existence

✅ The correct answer is A.
Money market funds were a financial innovation partly inspired to circumvent Regulation Q, which is no longer in existence. A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity less than 13 months. As a result, these funds offer high liquidity with a very low level of risk.

Author name: Administrator