Author name: Administrator

806. As part of Outpatient cover, which are the items that could not be covered?

Dental treatment
Optical services
Health checkups
Surgery
✅ The correct answer is D.
As part of Outpatient cover, Surgery could not be covered. Outpatient treatment is the term that most private medical insurance policies use for treatment which is given at a hospital which does not require you to stay in hospital overnight.

807. If market interest rates are expected to rise, you would expect___________.

bond prices to fall more than stock prices
bond prices to rise more than stock prices
stock prices to fall more than bond prices
stock prices to rise and bond prices to fall.
✅ The correct answer is A.
If market interest rates are expected to rise, you would expect bond prices to fall more than stock prices. The prevailing rate of interest offered on cash deposits, determined by demand and supply of deposits and based on the duration (the longer the duration, the higher the rate) and amount (the higher the amount, the higher the rate) of deposits.

809. Supply curve will shift when

Price falls
Price rises
Demand shots
Technology changes
✅ The correct answer is D.
Supply curve will shift when Technology changes. Factors that can shift a supply curve either to the left or the right are changes in input prices, number of sellers, technology, social concerns and expectations.

811. Difference between flexible budget amount and corresponding actual result is called

corresponding variance
resultant variance
flexible budget variance
static budget variance
✅ The correct answer is C.
Difference between flexible budget amount and corresponding actual result is called flexible budget variance. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget.

73. Under diminishing balance method, depreciation

Is constant every year
Increases every year
Decreases every year
None of the above
✅ The correct answer is C.
Under diminishing balance method, depreciation decreases every year. Since the book value reduces every year, hence the amount of depreciation also reduces every year. Under this method, the value of the asset never reduces to zero.

785. The most important advantage of a joint stock company form of business organization is that _________.

the liability of its member is limited
members can conveniently transfer their shares
it offers infinite scope for expansion
it mobilizes vast amount of financial resources
✅ The correct answer is B.
The most important advantage of a joint stock company form of business organization is that members can conveniently transfer their shares. The shares of a company are transferable. Also, in the case of a listed public company they can also be sold in the market and be converted to cash.

787. Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?

The insurance company will refund 100% of the premium
The insurance company will refund 50% of the premium
The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges
The insurance company will forfeit the entire premium
✅ The correct answer is C.
The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges.
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