Administrator

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

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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.

2875. A formula such as net income available to common stockholders divided by common equity is used to calculate

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return on earning power
return on investment
return on common equity
return on interest
✅ The correct answer is C.
A formula such as net income available to common stockholders divided by common equity is used to calculate return on common equity. The Return on Common Equity (ROCE) ratio refers to the return that common equity investors receive on their investment.

2860. Memory unit performs the function of ___________.

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calculations at a very high speed
giving out the end product
controlling at the operating units
storing the data
✅ The correct answer is D.
Memory unit performs the function of storing the data. This unit can store instructions, data, and intermediate results. This unit supplies information to other units of the computer when needed. It is also known as internal storage unit or the main memory or the primary storage or Random Access Memory (RAM).

2864. Which of the following is incorrect with regards to portfolio method?

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The total investment return is shared between policyholders
No attempt is made to distinguish between investments of previous years over current investments
This method gives homogenized rates of return
None of the above
✅ The correct answer is D.
All of the above are correct with regards to the portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account.