Author name: Administrator

2820. Pick out the incorrect statement out of the following ones.

In decreasing term policy the premium will fall each year
In decreasing term cover the premium is the same throughout the policy duration
Policy benefits will also decrease over the policy period
Mortgage redemption policy is nothing but a term insurance cover
✅ The correct answer is A.
In decreasing term insurance the premium is constant through the term.

2824. Declined life means

Life to which insurance could be granted
Life to which insurance cover could not be granted at affordable cost
Both A & B
None of the above
✅ The correct answer is B.
Declined life means Life to which insurance cover could not be granted at affordable cost. Its purpose it to protect insurance companies from applicants who may be lying about their current health conditions. Just because you have been previously denied life insurance does not mean you will be denied again.

2825. An indication in a way that variance of y-variable is explained by x-variable which is shown as

degree of dispersion is one
degree of dispersion is two
degree of dispersion is three
degree of dispersion is four
✅ The correct answer is A.
An indication in a way that variance of y-variable is explained by x-variable which is shown as degree of dispersion is one. The measure of dispersion helps us to study the variability of the items. In a statistical sense, dispersion has two meanings: first it measures the variation of the items among themselves, and second, it measures the variation around the average.

2828. The Revealed Preference Theory deduces the inverse price-quantity relationship from

Assumption of indifference
Postulate of utility maximization
Observed behavior of the consumer
Introspection
✅ The correct answer is C.
The Revealed Preference Theory deduces the inverse price-quantity relationship from observed behavior of the consumer. Revealed preference theory asserts that the best way to measure consumer preferences is to observe their purchasing behavior.

2830. Which of the following characteristics are true, with reference to preference capital?

Preference dividend is not tax deductible
The claim of preference shareholders is prior to the claim of equity shareholders
Preference shareholders are not the owners of the concern
All of the above
✅ The correct answer is D.
Preference dividend is not tax deductible, The claim of preference shareholders is prior to the claim of equity shareholders and Preference shareholders are not the owners of the concern characteristics are true, with reference to preference capital.

2832. What might identity thieves do with your identity?

Apply for and use credit cards
Apply for a loan
Change their identity
All of the above
✅ The correct answer is D.
Once identity thieves have your personal information, they can drain your bank account, run up charges on your credit cards, open new utility accounts, or get medical treatment on your health insurance. An identity thief can file a tax refund in your name and get your refund.

2834. A higher indifference curve shows

A higher level of satisfaction
A higher level of production
A higher level of income
None of the above
✅ The correct answer is A.
A higher indifference curve shows a higher level of satisfaction. A higher indifference curve will represent a higher level of satisfaction than a lower indifference curve. In other words, the combinations which lie on a higher indifference curve will be preferred to the combinations which lie on a lower indifference curve.
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