Administrator

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

by
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.

3297. Weighted average of probabilities is classified as

by
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.

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

by
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.

3277. The kinked demand curve model of oligopoly assumes that

by
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.