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Pass Module-0 Exam Cram

Exam Code: Module-0

Exam Name: Entry exam of the Certified Actuarial Analyst qualification

Version: V15.35

Q & A: 208 Questions and Answers

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NEW QUESTION: 1
If a series of profit lines for X and Y are drawn on the graph, the mix of X and Y that will result in the maximum profit can be determined from?
A. The first point on the feasible solution region boundary that intersects a profit line.
B. Any point on the demand constraint that intersects a profit line.
C. Any point on the boundary of the feasible solution region touched by a profit line.
D. The last point in the feasible solution region touched by a profit line.
Answer: D
Explanation:
A profit line has negative slope because the profit from sales of one product increases as the profit from sales of the other product declines. Moving the profit line rightward (while maintaining its slope) to the last point in the feasible region determines the solution.

NEW QUESTION: 2
Under what circumstances may a municipal securities dealer guarantee a customer against loss in market
value of bonds?
A. only if the agreement is in writing
B. only if the bonds are rated AAA or Aaa
C. under no circumstances
D. only if the bonds are insured
Answer: C
Explanation:
under no circumstances. No guarantees may be made against loss of market value because
no one can guarantee the direction of the market. Insured bonds are protected against loss of principal
and interest but not against market value depreciation.

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