Author name: Administrator

191. System which measures budget, action and plan of each responsibility center is known as

A) budgeted accounting
B) action accounting
C) planned accounting
D) responsibility accounting
✅ ANSWER: D
System which measures budget, action and plan of each responsibility center is known as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.

193. Those cost which is incurred to prevent the labour turnover __________.

A) management cost
B) replacement cost
C) preventive cost
D) compensation cost
✅ ANSWER: C
Those cost which is incurred to prevent the labour turnover is known as preventive cost. These are costs which are incurred to prevent excessive labour turnover. The aim of these costs is to keep the workers satisfied so that they may not leave the factory.

197. In Unit Linked policies, the risk cover is a multiple of _________

A) Fund Value
B) Accumulations
C) Net Asset Value
D) Premiums
✅ ANSWER: D
In Unit Linked policies, the risk cover is a multiple of Premiums. A unit linked insurance plan (ULIP) is an investment product that provides for insurance payout benefits. ULIP offerings are primarily concentrated in India. The investment vehicle requires a premium payment which is invested in investment products for capital appreciation.

161. Which of the following options is correct?

A) Premium paid by a client for health cover enjoys income tax deduction under section 80C of the Income Tax Act
B) Premium paid towards health cover earns income tax rebate under section 80D of the Income Tax Act
C) Premium paid for a health cover does not qualify for tax benefit under any provision of the Income Tax Act
D) There is no upper limit to sum assured in a health insurance policy
✅ ANSWER: B
Section 80D of the Income Tax Act deals with rebates. Tax Benefits of Health Insurance Under Section 80D. Health insurance premium paid for self, spouse, dependent children or parents qualifies for tax deduction up to Rs.25,000. This limit has been increased from Rs.15,000 from the previous year to Rs.25,000.

167. According to Black Scholes model, rate which is constant and known is classified as

A) short term return rate
B) long term return rate
C) risk free interest rate
D) risky rate of return
✅ ANSWER: C
According to Black Scholes model, rate which is constant and known is classified as risk free interest rate. The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

170. In case of inferior goods, the income elasticity is

A) Zero
B) Positive
C) Negative
D) None
✅ ANSWER: C
In case of inferior goods, the income elasticity is Negative. A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes.

176. Which one of the following is true about Planning Commission?

A) It is a Ministry
B) It is a Government Department
C) It is an Advisory Body
D) It is an Autonomous Corporation
✅ ANSWER: C
Planning Commission is an Advisory Body. The Planning Commission is a non-constitutional and non-statutory body and is responsible to formulate five years plan for social and economic development in India.
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