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3238. Real risk-free interest rate in addition with an inflation premium is equal to

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required interest rate
quoted risk-free interest rate
liquidity risk-free interest rate
premium risk-free interest rate
✅ The correct answer is B.
Real risk-free interest rate in addition with an inflation premium is equal to quoted risk-free interest rate. The Risk-Free Rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.

3239. Price discrimination is not possible in case of

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Perfect competition
Monopoly
Monopolistic competition
Oligopoly
✅ The correct answer is A.
Price discrimination is not possible in case of Perfect competition. Price discrimination is not possible under perfect competition, even if the two markets could be kept separate. Since market demand in each market is perfectly elastic, every seller would try to sell in that market in which could get the highest price. Competition would make the price equal in both the markets. However, price discrimination is possible and profitable only when markets are imperfect.

3240. A monopolist is able to maximize his profits when

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His output is maximum
He charges high price
His average cost is minimum
His marginal cost is equal to marginal revenue
✅ The correct answer is D.
A monopolist is able to maximize his profits when his marginal cost is equal to marginal revenue. The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC.

3241. In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as

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incremental product
sunk product
main product
split off product
✅ The correct answer is C.
In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as main product. A main product is a joint output that generates a significant portion of the net realizable value within a joint production process.

3242. As per HLV concept, the amount of insurance one can buy could be _________ times of one’s annual income.

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5 to 10 times
10 to 15 times
25 to 50 times
50 to 100 times
✅ The correct answer is B.
As per HLV concept, the amount of insurance one can buy could be 10 to 15 times of one’s annual income. We have already seen that an asset is a kind of property that yields value or a return. For most kinds of property the value is measured in precise monetary terms. Similarly the amount of loss of value can also be measured.

3247. A stock which is issued to meet specific needs of company is considered as

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classified stock
specific stock
needed stock
meeting stock
✅ The correct answer is A.
A stock which is issued to meet specific needs of company is considered as classified stock. Classified stock is a type of common stock that has special privileges, such as enhanced voting rights or dividend rights.

3248. Capital budgeting decisions are analyzed with help of weighted average and for this purpose

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component cost is used
common stock value is used
cost of capital is used
asset valuation is used
✅ The correct answer is C.
Capital budgeting decisions are analyzed with help of weighted average and for this purpose cost of capital is used. Capital budgeting is a company’s formal process used for evaluating potential expenditures or investments that are significant in amount.