art mcqs

Which one of the following is the special drawing rights given by the International Monetary Fund to its member countries?

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Cold money
Hot money
Paper gold
None of the three
✅ The correct answer is C.
Paper gold is the special drawing rights given by the International Monetary Fund to its member countries. It is an accounting entry. It is used only among governments and IMF for balance of payment settlements.

Fees payable to the IRDA for issue of licence to act as an agent of an insurance company are

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Rs.500
Rs.100
Rs.250
Rs.1000
✅ The correct answer is C.
Rs. 250 is the fees payable to the Authority for issue/ renewal of licence to act as an insurance agent or composite insurance agent. The Authority may issue duplicate licence in case it is lost. If an agent is found guilty of criminal misappropriation the designated person will cancel the license.

Which of the following organisations should not be advised to use service costing?

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Distribution service
Hospital
Maintenance division of a manufacturing company
A light engineering company
✅ The correct answer is D.
A light engineering company should not be advised to use service costing. Service costing is a type of operation costing which is used in organizations which provide services instead of producing goods.

According to probability distribution of rates of return, a close outcome to an expected value is shown by

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value distribution
expected distribution
more peaked distribution
less peaked distribution
✅ The correct answer is C.
According to probability distribution of rates of return, a close outcome to an expected value is shown by more peaked distribution. Data that is more peaked is data that has a sharper peak compared to data with a more gradual slope. Gradual peaks indicate that your data rose steadily whereas a sharp peak indicates that your values increased rapidly.

Under Marginal utility analysis, utility is assumed to be a

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Cardinal concept
Ordinal concept
Indeterminate concept
None of the above
✅ The correct answer is A.
Under Marginal utility analysis, utility is assumed to be a Cardinal concept. The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on.

In traditional cash value policies, the policy reserve form part of a _________

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Special investment account
General investment account
Both A & B
None of the above
✅ The correct answer is B.
In traditional cash value policies, the policy reserve form part of a General investment account. When an insurance company underwrites a new policy, it is paid a premium by the policyholder. These premiums are deposited into the insurer’s general account.