art mcqs

If two goods were perfect substitutes of each other, it necessarily follows that

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A) An indifference curve relating the two goods will be curvilinear
B) An indifference curve relating the two goods will be linear
C) An indifference curve relating the two goods will be divided into two segments which meet at a right angle
D) An indifference curve relating the two goods will be convex to the origin
✅ ANSWER: B
If two goods were perfect substitutes of each other, it necessarily follows that an indifference curve relating the two goods will be linear. As price rises for a fixed money income, the consumer seeks the less expensive substitute at a lower indifference curve.

Which is not an appropriate reason for a proper financial planning?

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A) Break-up of joint family system
B) Changing lifestyle
C) Underwriting
D) Change in behavioral pattern
✅ ANSWER: C
Underwriting is not a reason for proper financial planning. Underwriting services are provided by some large financial institutions, such as banks, or insurance or investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee.

A materials requirements planning (MRP) system is an example of ______.

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A) spot purchasing
B) a multi-tier supply chain
C) a legacy computer system
D) electronic data interchange
✅ ANSWER: C
A materials requirements planning (MRP) system is an example of a legacy computer system. Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase.

State which is incorrect statement

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A) Life Insurance agents desirous of doing stand alone Health insurance business will have to be certified under IC-34 separately
B) Such life agents as above are exempt from passing IC-34 if they have been certified under IC-33 and if they undergo some internal training for 25 hours given by Health Insurance Company
C) Agents certified under IC 34 for non life insurer can do standalone Health insurance business after undergoing internal training for 25 hrs from the standalone health insurance company
D) No agent, individual or corporate of life and or non-life insurer shall offer his services to more than one standalone health insurance Company
✅ ANSWER: A
Term insurance can be bought as a stand -alone policy as well as a rider with another policy.

In order for the policy to acquire a guaranteed surrender value, for how long must the premium be paid as per law?

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A) Premiums must be paid for least 2consecuitve years
B) Premiums must be paid for least 3consecuitve years
C) Premiums must be paid for least 4consecuitve years
D) Premiums must be paid for least 5consecuitve years
✅ ANSWER: B
In order for the policy to acquire a guaranteed surrender value, Premiums must be paid for at least 3 consecuitve years the premium be paid as per law.

A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?

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A) Rs. 1000
B) Rs. 2000
C) Rs. 3000
D) Rs. 5000
✅ ANSWER: A
Cost of the asset = Rs. 6,000
Salvage Value = Rs. 1,000
Total Depreciation Cost = Cost of asset – Salvage Value = 6000 – 1000 = Rs. 5000
Useful life of the asset = 5 years
Thus, annual depreciation cost = (Cost of asset – Salvage Cost)/Useful Life = 5000/5 = Rs. 1000.

Slope coefficient of beta is classified statistically significant if its probability is

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A) greater than 5%
B) equal to 5%
C) less than 5%
D) less than 2%
✅ ANSWER: C
Slope coefficient of beta is classified statistically significant if its probability is less than 5%. A standardized beta coefficient compares the strength of the effect of each individual independent variable to the dependent variable.