CAT Questions

Q:

What is an example of an inflation risk?

Answer

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.


 


HOW IT WORKS (EXAMPLE):



For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.

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Subject: Bank Interview Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 2084
Q:

All Insurance is based on a principle called

A) investment premiums B) division of risk
C) cash value coverage. D) premium earnings
 
Answer & Explanation Answer: B) division of risk

Explanation:

Any type of insurance, be it home, auto, life, health, etc. are based on a principle of division of risk.

 

Division of Risk :: This is based on how much risk the insurer estimates the insured's coverage to be. The riskier the opportunity (bad health, area the home is in) the higher the premium costs.

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Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 2084
Q:

How long is your TABC certification valid?

A) 1 year B) 2 years
C) 4 years D) 6 months
 
Answer & Explanation Answer: B) 2 years

Explanation:

TABC stands for Texas Alcoholic Beverage Commission. The Texas Alcoholic Beverage Commission regulates the sales, taxation, production, trade, and advertising of alcoholic beverages in Texas. Alcohol Seller/server Training regulated by this regulatory body is also called TABC Certification. It makes the rules the rest of us have to follow, and if you want to get a job serving alcohol in Texas, getting TABC certified is your first step.

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Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 2084
Q:

Which of these is true of all simple machines?

A) these make work easier B) work input > work output
C) Both A & B D) None of the above
 
Answer & Explanation Answer: C) Both A & B

Explanation:
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Filed Under: Physics
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

3 2082
Q:

Which statements about viruses are true?

A) HIV contains reverse transcriptase. B) A retrovirus contains RNA.
C) Both A & B D) All RNA-containing viruses are retroviruses.
 
Answer & Explanation Answer: C) Both A & B

Explanation:

The statements true about viruses are :

 

1. The capsid enters the host cell if the virus is enveloped.

2. Enveloped viruses bud from the host cell. 

3. HIV contains reverse transcriptase.

4. A retrovirus contains RNA.

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Filed Under: Biology
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

1 2082
Q:

To which class do honey bees bees belong?

A) Insecta B) Apidae
C) Arthropoda D) Hymenoptera
 
Answer & Explanation Answer: A) Insecta

Explanation:

Honey bees bees belong to the class insects or insecta.

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Filed Under: Animals and Birds
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

11 2081
Q:

Two angles whose sum is 90 are

A) Supplementary angles B) corresponding angles
C) Complimentary angles D) Alternate angles
 
Answer & Explanation Answer: C) Complimentary angles

Explanation:

Complimentary angles are those two angles whose sum is 90 whereas two angles whose sum is 180 are called Supplementary angles.

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Filed Under: Arithmetical Reasoning
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

2 2081
Q:

Microorganisms that cause disease are called

A) Pathogens B) Microbes
C) Infectees D) None of the above
 
Answer & Explanation Answer: A) Pathogens

Explanation:
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Filed Under: General Science
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

2 2080