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359. Coupon rate of bond is also called

nominal rate
premium rate
quoted rate
both a and c
✅ The correct answer is D.
Coupon rate of bond is also called nominal rate and quoted rate. Coupon interest rates are determined as a percentage of the bond’s par value, also known as the “face value.”

361. Cash flows that should be considered for decision in hand are classified as

relevant cash flows
irrelevant cash flows
marginal cash flows
transaction cash flows
✅ The correct answer is A.
Cash flows that should be considered for decision in hand are classified as relevant cash flows. It states that they must be cash flows that occur in the future and are incremental. While on the face of it obvious, only costs or revenues that give rise to a cash flow should be included.

365. Mobility of labour

Increases efficiency of labour
Spoils labour
Increases division of labour
a’ and ‘c’ both
✅ The correct answer is D.
Mobility of labour Increases efficiency of labour and also increases division of labour.

368. If a general manager asks the sales manager to recruit some salesman on his behalf, it is an instance of ___________.

Division of authority
Decentralisation of authority
Delegation of authority
Delegation of responsibility
✅ The correct answer is C.
If a general manager asks the sales manager to recruit some salesman on his behalf, it is an instance of Delegation of authority. Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.

371. Which of the below is not an advantage of cash value insurance contracts?

Safe and secure investment
Inculcates saving discipline
Lower yields
I.T. advantages
✅ The correct answer is C.
Lower yields is not an advantage of cash value insurance contracts. Cash value insurance is permanent life insurance because it provides coverage for the policyholder’s life. Traditionally, cash value insurance has higher premiums than term insurance because of the cash value element.

374. With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of

Gross premiums
Single premiums
Advance premiums
Level premiums
✅ The correct answer is D.
With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of Level premiums. Level-premium insurance is term life insurance for which the premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases.

377. Offering cash discount to customers result in _______.

reducing the average collection period
increasing the average collection period
increasing sales
decreasing sales
✅ The correct answer is A.
Offering cash discount to customers result in reducing the average collection period. A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.

383. Second step in binomial approach of option pricing is to define range of values

at expiration
at buying date
at exchange closing time
at exchange opening time
✅ The correct answer is A.
Second step in binomial approach of option pricing is to define range of values at expiration. An expiration date in derivatives is the last day that a derivative, such as options or futures, is valid. On or before this day, investors will have already decided what to do with their expiring position.
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