Dennis was involved in an accident. He believes the damage to his auto is $7,000. His insurer believes the damage is only $3,500. Which PAP provision is designed to handle disputes between the insurer and the insured over the amount of the loss? A) other insurance provision B) agreed amount endorsement C) coinsurance provision D) […]
Which of the following statements concerning the collision damage waiver when renting an auto is true? I. It relieves the renter from legal liability to third parties arising out of operation of the rented car. II. It relieves the renter from legal liability for the vehicle if it is damaged or stolen. A) I only […]
Which of the following statements is (are) true with respect to the collision damage waiver on rented cars? I. It is inexpensive and is provided at no charge by most rental car companies. II. It waives the renter’s liability for bodily injury liability arising out of use of the rented auto. A) I only B) […]
The purpose of gap insurance is to A) pay the difference between the bodily injury liability limit purchased and the actual amount of bodily injury liability if it exceeds the limit. B) pay the difference between the amount the insurer pays if a car is a total loss and the remaining amount owed on a […]
The New York Stock Exchange (NYSE) is A) an automated electronic trading platform. B) a hybrid market, allowing for face-to-face trading on the floor of the stock exchange in addition to automated, electronic trading. C) an auction market with face-to-face trading on the floor of the stock exchange in addition to automated, electronic trading. D) […]
The astute financial manager will seek to attain the highest current ratio possible. Indicate whether the statement is true or false ANSWER FALSE
The retained earnings balance on IBM’s balance sheet at the end of 2010 is equal to IBM’s 2010 net income minus dividends paid in 2010. Indicate whether the statement is true or false ANSWER FALSE
If the value of a vehicle is increased after repairs, such as repainting an entire auto when only one fender or door is damaged, the insurer will not pay for the increase in value. Another name for the increase in value is A) diminution. B) betterment. C) appraisal. D) subrogation. ANSWER Answer: B
You are considering a sales job that pays you on a commission basis or a salaried position that pays you $50,000 per year. Historical data suggests the following probability distribution for your commission income. Which job has the higher expected income? Commission Probability of Occurrence $15,000 .15 $35,000 .20 $48,000 .35 $67,000 .22 $80,000 .18 […]
At what rate must $287.50 be compounded annually for it to grow to $650.01 in 14 years? A) 6 percent B) 7 percent C) 5 percent D) 8 percent ANSWER A
