Insurance and Risk Management 4

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Objective Questions and Answers of MBA: Insurance and Risk Management 4

Subject: Objective Questions and Answers of MBA: Insurance and Risk Management 4

Part 4: Objective questions and answers of Insurance and Risk Management


Q1. The risk that arises because of magnitude of cash flow due to change in output and input prices is known as ______________.

a) Credit risk

b) Particular risk

c) Business risk

d) Price risk


Q2. If rmis has the problem of incompatibility of software then the remedy is to provide ______________.

a) Solid vendor account team

b) Internal access to system expert

c) Clear and comprehensive specifications

d) Financial check


Q3. The process of reducing the level of risky activities firstly affect the frequency of losses is the strategy of ______________.

a) Risk avoidance

b) Retention

c) Hedging

d) Other contractual risk transfer


Q4. A complete proposal form contains information about ______________.

a) Moral hazard

b) Physical hazard

c) Personal history of proposer and identify of the property insurance

d) All of the above


Q5. _______________ Policy matures on the assured death or on his attainment of a particular age whichever occurs earlier.

a) Endowment

b) Money back

c) Joint life

d) Single premium


Q6. Risk insured against death is a contract of ______________.

a) Assurance

b) Agreement

c) Indemnity

d) Caveat emptor


Q7. When an event is stated to be possible, it has a probability between ______________.

a) Zero and one

b) Zero or one

c) None of these

d) Both of the above


Q8. Insurance cover ______________.

a) Protect assets

b) Prevents loss

c) Reduces the impact of loss

d) Insurances immortality


Q9. Bank assurance means ______________.

a) Selling financial services

b) General liability insurance

c) Selling banking products

d) Selling insurance products


Q10. A bank assurance concept originated in ______________.

a) England

b) Finland

c) France

d) Spain


Q11. The risk which directly affects the individual's capability to earn income is called


a) Personal risk

b) Risk financing

c) Risk retention

d) Risk sharing


Q12. The measures aimed at avoiding, eliminating or reducing the chances of loss producing events is covered by ______________.

a) Risk avoidance

b) Risk control

c) Risk evaluation

d) Risk financing


Q13. The expected value of losses varies directly with the ______________.

a) Time period

b) Financial period

c) Fixed period

d) Fluctuating period


Q14. Personnel risk in a firm depends upon the ability integrity and enthusiasm of _______.

a) Creditors

b) Debtors

c) Government

d) Management and employees


Q15. The situation of doubt in mind about the happening or not happening of anything in future because of lack of knowledge ______________

a) Risk

b) Uncertainty

c) Loss

d) Hazards


Q16. The cost of uncertainty that remains once the firm has selected and implemented loss control loss financing and internal risk reduction is called ______________.

a) Cost of residual uncertainty

b) Cost of expected losses

c) Cost of price change

d) Cost of loss control


Q17. The methods of risk management are ______________.

a) Loss control

b) Loss financing

c) Internal risk reduction

d) All of the above


Q18. The insurance plays a role in the economic development of the country in the following ways ______________.

a) Releases capital for new investments

b) The job potential increases

c) Money collected is invested in infrastructure

d) All of the above


Q19. Fire insurance can be taken in respect of ______________

a) Movable property only

b) Immovable property only

c) Both movable and immovable properties

d) Persons only


Q20. ______________ is an agreement whereby the insurer agrees to indemnity the insured against marine losses.

a) Life insurance

b) Fire insurance

c) Marine insurance

d) Public liability insurance


Part 4: Objective questions and answers of Insurance and Risk Management


Q1. Answer d


Q2. Answer c


Q3. Answer a


Q4. Answer b


Q5. Answer a


Q6. Answer a


Q7. Answer a


Q8. Answer c


Q9. Answer d


Q10. Answer c


Q11. Answer a


Q12. Answer b


Q13. Answer a


Q14. Answer d


Q15. Answer b


Q16. Answer a


Q17. Answer d


Q18. Answer d


Q19. Answer c


Q20. Answer c

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