Author name: Administrator

130. In specification analysis, assumptions related to residuals states must be

A) worst
B) independent
C) dependent
D) good
✅ ANSWER: B
In specification analysis, assumptions related to residuals states must be independent. The goal of the Requirements Analysis and Specification is to clearly understand customer requirements and to systematically organize these requirements in a specification document.

132. Annuity belongs to

A) One where the annuity amount is fixed (guaranteed)
B) One where the annuity amount is variable (linked to investment performance)
C) Both A & B
D) None of the above
✅ ANSWER: C
Annuity belongs to one where the annuity amount is fixed (guaranteed) and one where the annuity amount is variable (linked to investment performance).

137. Which of the below group would not be eligible for a group health insurance policy?

A) Employees of a company
B) Credit card holders of an organisation
C) Professional association members
D) Group of unrelated individuals formed for the purpose of availing group health insurance
✅ ANSWER: D
Group of unrelated individuals formed for the purpose of availing group health insurance would not be eligible for a group health insurance policy.

140. All of the following are determinants of demand except

A) Tastes and preferences
B) Quantity supplied
C) Income
D) Price of related goods
✅ ANSWER: B
All of the following are determinants of demand except Quantity supplied. The Five Determinants of Demand Prices of related goods or services. These are either complementary, those purchased along with a particular good or service, or substitutes, those purchased instead of a certain good or service. Tastes or preferences of consumers. Expectations.

143. Sales budget variance is subtracted from flexible budget amount to calculate

A) static budget amount
B) unstated amount
C) constant amount
D) variable amount
✅ ANSWER: A
Sales budget variance is subtracted from flexible budget amount to calculate static budget amount. A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins.

146. An example of fixed cost ________.

A) property tax
B) rent for building
C) direct material cost
D) direct wages
✅ ANSWER: B
An example of fixed cost rent for building. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

149. An income available for shareholders after deducting expenses and taxes from revenues is classified as

A) net income
B) net earnings
C) net expenses
D) net revenues
✅ ANSWER: A
An income available for shareholders after deducting expenses and taxes from revenues is classified as net income. Net income represents the amount of money remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company’s total revenue.

152. State which is correct out of the following

A) A Term Insurance policy cannot be convered into any other policy during its duration
B) Term policy is available both a separate policy and as a rider in another policy
C) Term policy can be issued with lifelong renewability option
D) All Term covers will have a disability rider
✅ ANSWER: B
Term policy is available both a separate policy and as a rider in another policy.

155. Which of the following is untrue as per IRDA’s regulations on non-par policies?

A) The benefits shall be stated at the outset
B) The benefits shall be linked to some index
C) The additional benefit under these policies shall be laid out at the outset
D) The return shall be stated at the beginning of the contract itself
✅ ANSWER: B
The benefits of an insurance policy are not linked to any index. Hence, option (2) is the correct answer.
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