1. Calculate the optional bodily injury cost for the
following:
Class:10
Optional Bodily Injury 100/300/50
A. $94
B. $144
C. $108
D. $187
2. Calculate the median from the following numbers: 16 + 9 +
10 + 5 + 4.
A. 9
B. 10
C. 4
D. 5
3. Assume the mean useful life of a particular light bulb is
2,000 hours, which is normally distributed with a standard deviation of 300
hours. What is the range of the useful life of light bulbs within two standard
deviations of the mean.
A. Between 1,700 and 2,300 hours
B. Longer than 1,700 hours
C. Longer than 2,300 hours
D. Between 1,400 and 2,600 hours
4. To avoid distortion of extreme values, a good indicator
would be the
A. Weighted-mean
B. Mode.
C. Mean.
D. Median.
5. In terms of premium cost, the most expensive type of
insurance is ______ insurance.
A. Term
B. 20-year endowment
C. 20 payment life
D. Straight-life
6. Commissions charged on the trading of stock are
A. Charged on buying and selling of stock.
B. Fixed.
C. Charged only on buying of stock
D. Charged only on sale of stock.
7. Suppose Department A is 8,000 square feet, Department B
is 5,000 square feet, and Department c is 6,000 square feet. What is the
percent of overhead expense applied to Department C? (Round your answer to the
nearest whole percent.)
A. 26%
B. 68%
C. 32%
D. 42%
8. Which one of the following statements is true of specific
identification?
A. The specific purchase invoice prices aren’t used.
B. Ending inventory isn’t associated with specific purchase
price
C. Low-cost items aren’t used in this method.
D. Flow of goods and flow of cost are the same
9. The weighted-average method is best used
A. For homogeneous products.
B. For heterogeneous products.
C. Only for grains.
D. Only for fuels.
10. The tax rate of $.6943 in decimal can be expressed per
$100 as
A. $690.3
B. $69.43 mills
C. $69.43
D. $6.943
11. Bee Sting bought 400 shares of Google at $399.75 per
share. Assume a commission of 2% of the purchase price. What is the total of
Bee?
A. $163,098
B. $156,702
C. $163,980
D. $159,900
12. The building of Jim’s Hardware is assessed at $109,000.
The tax rate is $86.95 per 1,000 of assessed valuation. The tax due is
A. $947.75
B. $8,695.45
C. $9,477.55
D. $8,659.54
E. $94,698.23
13. An auto insurance premium may be partially based on the
A. Attitude of the driver.
B. Expected life of the car.
C. Make of the car.
D. Number of years one expects to drive a car.
14. A bond quote of 82.25 in dollars is equal to
A. $8.25
B. 82.25
C. $8,025.50
D. $822.50
15. Which one of the following statements is true of
preferred stock?
A. It never has a preference to dividends over common
stockholders.
B. It can be cumulative.
C. It has equal rights to common stock.
D. It never receives dividends in arrears.
16. Which one of the following statements is true about
reduced paid-up insurance?
A. It results in a face amount less than the original
amount.
B. It means the original face amount is continued for a
certain number of years.
C. It buys protection with paying new premiums.
D. It continues for 20 years.
17. The range of 35, 22, 43, 18, 22, 27, 48, 39, 31, and 16
is
A. 30.
B. 29.
C. 22.
D. 32.
18. What is the retail method?
A. It aids a company in not having to calculate an inventory
cost for each individual item.
B. It’s not an estimate
C. It eliminates the need to take a physical inventory
D. It doesn’t require a cost ratio.
19. The cost ratio in retail method is found by the cost of
goods available for sale at cost divided by the
A. Net purchases at cost.
B. Net sales.
C. Cost of goods available for sale at retail.
D. Ending inventory at retail.
20. Jim opened a new pizza shop. He insures his store for
$90,000.00 for fire. What is his premium if the rate per $100.00 is $0.83?
A. $700.00
B. $74,700.00
C. $747.00
D. $74.70
21. Matt Miller, age 28, takes out $50,000 of straight-life
insurance. His annual premium is $418.20. Using the tables in the Business Math
Handbook that accompanies the course textbook, determine the cash value of his
policy at the end of 20 years.
A. $26,000
B. $26,500
C. $30,000
D. $13,250
22. Kris bought a new fur coat for $8,000. She must pay 5%
sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must
also pay a $15 insurance charge. What is the total purchase price of the coat?
A. $8,960
B. $8,560
C. $8,400
D. $8,975
23. Mike’s condo has a market value of $310,000. The
property in Mike’s area is assessed at 40% of the market value. The tax rate is
$145.10 per $1,000 of assessed valuation. The tax for Mike is
A. $16,992.40
B. $7,999.30
C. $17,992.40
D. $7,999.40
24. Usually, assessed value is rounded to the nearest
A. Percent.
B. Cent.
C. Tenth.
D. Dollar.
25. Determine the mode from the following numbers: 71, 3,
13, 33, 3, 71, 14, 33, 13, and 33.
A. 33
B. 13
C. 71
D. 3
