Inter-Ocean Transfer owns 12 large cargo ships which transport goods. Inter-Ocean Transfer can obtain physical damage insurance on these vessels by purchasing A) hull insurance. B) cargo insurance. C) protection and indemnity insurance. D) freight insurance. ANSWER Answer: A
Date: September 19th, 2020
You own an annuity due contract that will pay you $3,000 per year for 12 years. You need money to pay back a loan in 5 years, and you are afraid if you get the annuity payments annually you will spend the money and not be able to pay back your loan. You decide to […]
Date: September 19th, 2020
Because key variables are often related rather than isolated we often change our estimates for selected variables simultaneously when examining pro forma statements. We call this type of activity: A) ratio analysis. B) scenario analysis. C) sensitivity analysis. D) form analysis. ANSWER B
Date: September 19th, 2020
The characteristic line for any well-diversified portfolio is horizontal. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A navigation error caused a cargo ship to run aground on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained a $150,000 physical damage loss. If this loss is a “particular average” loss, how will the loss be settled? A) The owners […]
Date: September 19th, 2020
All of the following statements about inland marine forms are true EXCEPT A) A mail coverage form covers securities in transit by first-class mail, registered or certified mail, or express mail. B) A commercial articles coverage form is used to insure photographic equipment and musical instruments. C) A jewelers block coverage form is used by […]
Date: September 19th, 2020
A commitment fee is A) paid by investors to guarantee that a company will borrow from them. B) an amount paid by an investment banker to ensure the sale of securities. C) paid by bondholders to secure the right to convert bonds into common stock. D) an amount paid on the unused portion of a […]
Date: September 19th, 2020
Beta is a measurement of the relationship between a security’s returns and the general market’s returns. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Renee is risk manager of XYZ Company. She purchased a Commercial Package Policy for her company and added one optional coverage. This option suspends the coinsurance clause and substitutes a new agreement covering any loss in the same proportion that the limit of insurance purchased bears to a value specified in the declarations. This provision […]
Date: September 19th, 2020
The Sarbanes-Oxley Act, or SOX A) holds corporate advisors strictly accountable in a legal sense for any instances of misconduct. B) pretexts the interests of shareholders by providing greater protection against accounting fraud and financial misconduct. C) reduces the cost of financial reporting by standardizing reporting requirements. D) accomplishes both A and B. […]
Date: September 19th, 2020
