art mcqs

Under Immediate annuity, the premium has to be paid

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A) In regular instalments
B) In lumpsum
C) Both A & B
D) None of the above
✅ ANSWER: B
Under Immediate annuity, the premium has to be paid in lumpsum. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash. Immediate annuities have several advantages, such as long-term stability, tax-deferred income, and monthly income payments for the rest of your life.

Which of the below option is correct with regards to a term insurance plan?

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A) Term insurance plans come with life-long renewability option
B) All term insurance plans come with a built-in disability rider
C) Term insurance can be bought as a stand-alone policy as well as a rider with another policy
D) There is no provision in a term insurance plans to convert it into a whole life insurance plan
✅ ANSWER: C
Term insurance can be bought as a stand-alone policy as well as a rider with another policy. Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary.

Economic survey is published by

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A) Ministry of Finance
B) Planning Commission
C) Government of India
D) Indian Statistical Institute
✅ ANSWER: A
The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget.It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry’s view on the annual economic development of the country.

Carriage inwards refers to the cost of transportation for

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A) Purchase of materials
B) Sale of products
C) Returns outward
D) Return of unsold goods
✅ ANSWER: A
Carriage inwards refers to the cost of transportation for Purchase of materials. The carriage inwards costs are considered to be part of the cost of items purchased, since an asset’s cost is defined as all costs that are necessary to get the asset in place and ready for use.

In modern investment analysis, the risk for a stock is related to its_____________.

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A) leverage factor
B) standard deviation
C) beta coefficient
D) coefficient of variation
✅ ANSWER: C
In modern investment analysis, the risk for a stock is related to its beta coefficient. In finance, the beta (β or beta coefficient) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.

Pick out the incorrect statement.

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A) In a medical examiner’s report physical features like height, weight, blood pressure, etc need to be stated for proper risk assessment
B) If a proposal cannot be considered as a non-medical case for underwriting, a medical report is essential
C) There is no such thing as non-medical underwriting
D) Ration card is a non-standard proof of age
✅ ANSWER: C
Non Medical Life Insurance is for those who want the quickest possible coverage without going through a longer underwriting process. This product is a fully underwritten product which allows for rapid decision on available medical criteria.

An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as

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A) manufacturing analysis method
B) price analysis method
C) unit analysis method
D) account analysis method
✅ ANSWER: D
An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as account analysis method. The account analysis method is a cost accounting method for estimating the different costs associated with producing a product.