Author name: Administrator

773. Federal Reserve policy and federal surplus or deficit of budget affect the

cost of production
cost of money
opportunity cost
inflation risk
✅ The correct answer is B.
Federal Reserve policy and federal surplus or deficit of budget affect the cost of money. The Federal Reserve System is the central banking system of the United States of America. The Federal Open Market Committee (FOMC) sets monetary policy.

775. Identify the correct statement out of the following.

Free look period enables the policyholder to return the policy and ask for refund subject to certain conditions
Passport & School certificate is a standard proof of age
Ration card is a non-standard proof of age
All of the above
✅ The correct answer is D.
All the statements are correct.
Free look period enables the policyholder to return the policy and ask for refund subject to certain conditions, Passport & School certificate is a standard proof of age and Ration card is a non-standard proof of age.

776. The first stock exchange in the world___________.

Mumbai stock exchange
America stock exchange
London stock exchange
France stock exchange
✅ The correct answer is C.
The first stock exchange in the world is London stock exchange. London Stock Exchange is one of the world’s oldest stock exchanges and can trace its history back to 1571. London Stock Exchange Group was created in October 2007 when London Stock Exchange merged with Milan Stock Exchange, Borsa Italiana.

777. Rational decision making requires that

One’s choices be arrived at logically and without errors
One’s choices be consistent with one’s goals
One’s choices never vary
One makes choices that do not involve trade offs
✅ The correct answer is B.
Rational decision making requires that One’s choices be consistent with one’s goals. Rational choice theory, also called rational action theory or choice theory, school of thought based on the assumption that individuals choose a course of action that is most in line with their personal preferences.

778. In a machine dominated industry which method of overhead absorption is suitable?

Direct material cost method
Prime cost method
Labour hour method
Machine hour method
✅ The correct answer is D.
In a machine dominated industry Machine hour method of overhead absorption is suitable. Under this method, hourly rate of depreciation is calculated. The cost of the asset (less residual value if any) is divided by the estimated working hours. The actual depreciate for any given period depends upon the working hours during that year.

779. Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. To whom will the payment be made in this case?

Mahesh
Karan
The payment will be shared equally by Mahesh and Karan
Neither of the two because Mahesh has suffered the heart attack but the policy is assigned in the favor of Karan
✅ The correct answer is B.
Mahesh has brought a life insurance policy with a critical illness rider. He has made absolute assignment of the policy in favor of khan. Mahesh suffers a heart attack and there is a claim of Rs.50,000 under the critical illness rider. The payment be made to Karan in this case.

760. While calculating the weighted average cost of capital, market value weights are preferred because ____________.

Book value weights are historical in nature
This is in conformity with the definition of cost of capital as the investors minimum required rate of return
Book value weights fluctuate violently
Market value weights are fairly consistent over a period of time.
✅ The correct answer is A.
While calculating the weighted average cost of capital, market value weights are preferred because Book value weights are historical in nature.

762. Identify the correct statement out of the following ones.

In emergencies insurer may waive preauthorisation for entering into a hospital for treatment
In all cases preauthorisation either by the insurer or TPA is a must before getting admitted into a hospital
There is no provision for nomination in a health insurance cover
Summary of benefits, terms and conditions for each product in a health cover is not mandatory
✅ The correct answer is A.
In emergencies insurer may waive preauthorisation for entering into a hospital for treatment.
Scroll to Top