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3064. Tendency of moving together of two variables is classified as

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correlation
move tendency
variables tendency
double tendency
✅ The correct answer is A.
Tendency of moving together of two variables is classified as correlation. Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other.

3048. According to Fama French Three-Factor model, market value of company equity is used to calculate

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size of portfolio
size of industry
size of market
size of company
✅ The correct answer is D.
According to Fama French Three-Factor model, market value of company equity is used to calculate size of company. The Fama and French model has three factors: size of firms, book-to-market values and excess return on the market. In other words, the three factors used are SMB (small minus big), HML (high minus low) and the portfolio’s return less the risk free rate of return.

3049. Inventory of final goods that are not yet sold is called

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finished goods inventory
indirect material inventory
direct materials inventory
work in process inventory
✅ The correct answer is A.
Inventory of final goods that are not yet sold is called finished goods inventory. Finished goods inventory refers to the number of manufactured products in stock that are available for customers to purchase.

3050. Economic order quantity is that quantity at which cost of holding and carrying inventory is:

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Maximum and equal
Minimum and equal
It can be maximum or minimum depending upon case to case
Minimum and unequal
✅ The correct answer is B.
Economic order quantity is that quantity at which cost of holding and carrying inventory is minimum and equal. Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables. This is done to minimize inventory holding costs and order-related costs.

3052. Which of the following is NOT the assumption of the Marginal Productivity Theory of Distribution?

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Homogenity of a factor
Perfect competition in the factor market
All factors, except one, are variable
Given stock of each factor and full employment
✅ The correct answer is C.
All factors, except one, are variable is NOT the assumption of the Marginal Productivity Theory of Distribution.

3053. Revival of a life insurance policy means

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Forcing a policy to lapse
Reinstating a lapsed policy
Not paying the premiums
Non-settlement of claim monies
✅ The correct answer is B.
Revival of a life insurance policy means reinstating a lapsed policy. The documentation requirements for revival or reinstatement of a policy depend on the time elapsed between the date of lapsation and the date when the request for revival has been made by the policyholder.

3054. One reason for the declining importance of pension funds is the_______________.

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decrease in pension benefits for workers
downsizing of US companies
large number of conversions into self-directed plans
increasing number of federal regulations that restrict pension fund portfolios
✅ The correct answer is B.
One reason for the declining importance of pension funds is the downsizing of US companies.

3035. AT Co makes a single product and is preparing its material usage budget for next year Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%. The material usage budget for next year is

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8,000 Kg
9,840 kg
10,000 Kg
10,160 Kg
✅ The correct answer is C.