Author name: Administrator

2587. Stock option is considered more valuable in situation when stock have

price hike in market
market stability
not volatile
highly volatile
✅ The correct answer is D.
Stock option is considered more valuable in situation when stock have highly volatile. A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed upon price and date.

2589. Financial security in which there is no default risk and issues by U.S governments is classified as

U.S treasury bonds
mortgages
municipal bonds
corporate bonds
✅ The correct answer is A.
Financial security in which there is no default risk and issues by U.S governments is classified as U.S treasury bonds. Treasury bonds are U.S. government debt securities with a maturity range between 10 and 30 years and which are marketable and set at a fixed interest rate. T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.

245. Overriding commission is generally calculated on

Cash sale only
Total sales exceeding invoice value/cost
Credit sales
None of the above
✅ The correct answer is B.
Overriding commission is generally calculated on Total sales exceeding invoice value/cost. Overriding Commission is the extra commission allowed to the consignee in addition to the normal commission usually for making extra efforts to sell a new product in the market.

244. A cash book with cash, bank and discount column is commonly referrred to as

Cash book
Two columns cash book
Three columns cash book
Petty cash book
✅ The correct answer is C.
A cash book with cash, bank and discount column is commonly referrred to as Three columns cash book. The three column cash book (also known as triple column cash book) has three money columns on both debit and credit side – one on each side for recording discount, cash and bank amounts.

2579. Which of the new guidelines for traditional products is not true?

For participating policies, bonus is linked to performance of the fund
Bonus once announced becomes a guarantee
Such a bonus is called Terminal Bonus
For Non-par policies, returns are disclosed at the beginning of the policy
✅ The correct answer is C.
For participating policies, bonus is linked to performance of the fund. Bonus once announced becomes a guarantee. Such a bonus is called Simple Reversionary Bonus.

2580. Which of the below elements promote trust?

Communication, assertiveness and being present
Politeness, affirmation and communication
Attraction, communication and being present
Affirmation, assertiveness and attraction
✅ The correct answer is C.
Attraction, communication and being present are the three elements to promote trust.

2581. Greater value of option, larger span of time value is usually results in

shorter call option
longer call option
longer put option
shorter put option
✅ The correct answer is B.
Greater value of option, larger span of time value is usually results in longer call option. A call option, often simply labeled a “call”, is a financial contract between two parties, the buyer and the seller of this type of option.

2563. Statutory cost audit are applicable only to:

Firm
Company
Individual
Society
✅ The correct answer is B.
Statutory cost audit are applicable only to Company. A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.
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