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3294. Which of the following statement is correct in respect of Endowment policy?

Shorter the policy term, lesser the investment element

Shorter the policy term, larger the investment element

Longer the policy term, larger the investment element

Term and investment element do not bear any relationship

✅ The correct answer is B.
Shorter the policy term, larger the investment element is correct in respect of Endowment policy.

3295. Equity shareholders are the __________.

owners of the company

creditors of the company

debtors of the company

directors of the company

✅ The correct answer is A.
Equity shareholders are the owners of the company. Equity shares represent the ownership of a company and capital raised by the issue of such shares is known as ownership capital or owner’s funds.

3296. In respect of payment of Reversionary Bonuses, which of the following is incorrect?

Payable on maturity

Payable on death

Both A & B

Payable at any time during the term of a policy

✅ The correct answer is C.
Reversionary Bonuses are declared regularly and paid at the end (at the time of claim), i.e. on maturity of policy or death of the person. Hence, option (3) is incorrect.

3297. Weighted average of probabilities is classified as

average rate of return

expected rate of return

past rate of return

weighted rate of return

✅ The correct answer is B.
Weighted average of probabilities is classified as expected rate of return. The expected return on a financial investment is the expected value of its return. It is a measure of the center of the distribution of the random variable that is the return.

317. A credit balance in cash book indicates

Bank balance

Cash at bank

Bank overdraft

Bank underdraft

✅ The correct answer is C.
A credit balance in cash book indicates Bank overdraft. Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank. This is shown in the cash book as a credit balance.

3299. Maturity date decides at time of issuance of bond and legally permissible is classified as

original maturity

permanent maturity

artificial maturity

valued maturity

✅ The correct answer is A.
Maturity date decides at time of issuance of bond and legally permissible is classified as original maturity. The “original maturity” is the time between the issue date and the maturity date. This date is included in a bond’s indenture at the time of issuance. An investor that purchases a bond on its issuance date will be quoted the original maturity.

3301. Which of the following is an economic activity?

A farmer in the field

A teacher teaching his son

A social worker at a relief camp

A social worker

✅ The correct answer is A.
A farmer in the field is an economic activity. Any action that involves producing, distributing, or consuming products or services is an economic activity.

3274. If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to

Remain the same

Increase

Decrease

Any of the above

✅ The correct answer is B.
If the demand for a good is inelastic, an increase in the price of the good will cause the total expenditure of the consumers of the good to Increase.

3277. The kinked demand curve model of oligopoly assumes that

Response to a price increase is less than the response to a price decrease

Response to a price increase is more than the response to a price decrease

Elassticity of demand is constant regardless of whether price increases or decreases

Elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases

✅ The correct answer is A.
The kinked demand curve model of oligopoly assumes that response to a price increase is less than the response to a price decrease. In an oligopolistic market, the kinked demand curve hypothesis states that the firm faces a demand curve with a kink at the prevailing price level. The curve is more elastic above the kink and less elastic below it. This means that the response to a price increase is less than the response to a price decrease.

3279. Risk reduction and control involves steps like –

Education and training

Making environmental changes

Spreading out items to various locations

All of the above

✅ The correct answer is D.
Risk reduction and control involves steps like Education and training, Making environmental changes, Spreading out items to various locations, etc.

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