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444. An agent can work on which of the following bases for successful results?

Natural market is a source of market for a life insurance agent

A satisfied client can be an effective referral to an agent for further references

Family and friends can offer an easy opportunity for being contacted for life insurance selling

All of the above

✅ The correct answer is D.
All of the above will help an agent to get successful results. An agent can work on which of the following bases for successful results: Natural market is a source of market for a life insurance agent. A satisfied client can be an effective referral to an agent for further references. Family and friends can offer an easy opportunity for being contacted for life insurance selling.

447. The definition for ‘hospital’ does not envisage which of the following?

5 inpatient beds in towns with a population of < 10 lakh and 10 beds in other places

Qualified medical practitioner round the clock

Fully-equipped operation theatre

Daily records of patients to be maintained

✅ The correct answer is A.
Hospital is an institution in which sick or injured persons are given medical or surgical treatment by professional doctors. Therefore, according to the definition of hospital, the first option is not correct and the rest are correct.

450. Process a/c is ________.

nominal a/c

a real a/c

personal a/c

either nominal or real a/c

✅ The correct answer is A.
Process a/c is nominal a/c. A process account which is similar to a ledger account in financial accounting is an equivalent of a nominal account.

453. In which method of filing, all the letters and documents are passed in the book in chorological order?

Box file

Bound book

Metal holders

Pillar file

✅ The correct answer is B.
In Bound book method of filing, all the letters and documents are passed in the book in chorological order. Whenever papers are to be filed, they are pasted on leaves of books in a chronological order. Small papers of varying sizes are filled in the bound book.

456. Step in initial public offering in which hired agents act on behalf of owners is classified as

hiring problems

agency problems

corporation internal problems

corporation external problems

✅ The correct answer is B.
Step in initial public offering in which hired agents act on behalf of owners is classified as agency problems. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another’s best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company’s management and the company’s stockholders.

459. Which of the following is not a source of long-term finance?

Equity shares

Preference shares

Commercial papers

Reserves and surplus

✅ The correct answer is C.
Commercial papers is not a source of long-term finance. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.

394. Surrender value is a %age of _________

Human life value

Loan value

Paid up value

Monetary value

✅ The correct answer is C.
Surrender value is a %age of Paid up value. Surrender value is the amount payable to the policyholder should he decide to discontinue the policy and encash it. It is payable only after three full years’ premiums have been paid to the insurance company.

397. In options pricing, an exercise price rises from lower to higher which leads to

volatile options

option value increases

option value decreases

option value stable

✅ The correct answer is C.
In options pricing, an exercise price rises from lower to higher which leads to option value decreases. Before venturing into the world of trading options, investors should have a good understanding of the factors determining the value of an option. These include the current stock price, the intrinsic value, time to expiration or the time value, volatility, interest rates, and cash dividends paid.

400. Diversification reduces _________.

Interest rate risk

Market risk

Unique risk

Inflation risk

✅ The correct answer is C.
Diversification reduces Unique risk. Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories.

403. If a firm shuts down temporarily, it will incur loss equal to

AFC

AVC

TFC

TVC

✅ The correct answer is C.
If a firm shuts down temporarily, it will incur loss equal to TFC. The intersection of the average variable cost curve and the marginal cost curve, which shows the price where the firm would lack enough revenue to cover its variable costs, is called the shutdown point. If the perfectly competitive firm can charge a price above the shutdown point, then the firm is at least covering its average variable costs. It is also making enough revenue to cover at least a portion of fixed costs, so it should limp ahead even if it is making losses in the short run, since at least those losses will be smaller than if the firm shuts down immediately and incurs a loss equal to total fixed costs.

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