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2880. State which one of the following statements is correct

Life insurance is the best savings scheme for all persons

Life insurance is the best investment scheme for young persons

Both the statements above are correct

Both the statements above are wrong

✅ The correct answer is D.
Both the statements are incorrect.
Life insurance is not only the best savings scheme for all persons. Life insurance is not only the best investment scheme for young persons. There are many other insurance also.

2859. Which of the following information is not found in the Policy Schedule?

Plan and Term

Sum insured

Rights/Privileges

Policy Number

✅ The correct answer is C.
Rights/Privileges information is not found in the Policy Schedule.

2861. The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called _________.

Security

Mortgage

Usury

Hypothecation

✅ The correct answer is B.
The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called Mortgage.

2869. A firm decides to exit the industry when

AC starts rising

MC starts rising

Price is less than LAC

TC starts rising

✅ The correct answer is C.
A firm decides to exit the industry when Price is less than LAC. LAC at the efficient scale of production is thus the minimum average cost.

268. Which of the following is a leverage ratio?

Debt equity ratio

Current ratio

Quick ratio

Earning power

✅ The correct answer is A.
Debt equity ratio is a leverage ratio. The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders’ equity and debt used to finance a company’s assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.

2871. Marginal utility is equal to average utility at that time when average utility is

Increasing

Maximum

Falling

Minimum

✅ The correct answer is B.
Marginal utility is equal to average utility at that time when average utility is maximum.

2872. In so far policy loans are concerned, which one of the following is correct?

The policy has to be assigned in favour of the insurer

Such an assignment will not cancel the nomination already made

Both A & B

None of the above

✅ The correct answer is C.
Both the statements are correct.
The policy has to be assigned in favour of the insurer and such an assignment will not cancel the nomination already made.

269. Under which method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset?

Reducing balance method

Unit of activity method

Straight line method

None of these

✅ The correct answer is C.
Under Straight line method of depreciation, the amount of depreciation expenses remains constant throughout the life of the asset.

2874. If common shares outstanding are 50,000,000 and book value per share is Rs 19.92 then total common equity will be

Rs 996,000,000.00

Rs 995,000,000.00

Rs 992,000,000.00

Rs 991,000,000.00

✅ The correct answer is A.
Total Equity = Shares outstanding × Book value per share
= 50,000,000 × 19.92
= Rs. 996,000,000.00

2857. Most frequently used methods of quantitative analysis include

variable equation

high low method

low high method

constant equation

✅ The correct answer is B.
Most frequently used methods of quantitative analysis include high low method. The high low method and regression analysis are the two main cost estimation methods used to estimate the amounts of fixed and variable costs.

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