Insurance and Risk Mgmt MCQs 2026

FX scenario 26: USD/PKR spot Rs 306 and 90-day forward Rs 312. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 306 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 312 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 27: USD/PKR spot Rs 308 and 90-day forward Rs 315. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 315 reducing exchange rate uncertainty✓
2. Bspot rate Rs 308 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 28: USD/PKR spot Rs 310 and 90-day forward Rs 318. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 318 reducing exchange rate uncertainty✓
2. Bspot rate Rs 310 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 29: USD/PKR spot Rs 313 and 90-day forward Rs 321. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 313 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 321 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 30: USD/PKR spot Rs 315 and 90-day forward Rs 325. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 315 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 325 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 47: USD/PKR spot Rs 336 and 90-day forward Rs 347. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 347 reducing exchange rate uncertainty✓
2. Bspot rate Rs 336 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 46: USD/PKR spot Rs 334 and 90-day forward Rs 344. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 334 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 344 reducing exchange rate uncertainty✓

FX scenario 45: USD/PKR spot Rs 332 and 90-day forward Rs 340. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 340 reducing exchange rate uncertainty✓
2. Bspot rate Rs 332 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 44: USD/PKR spot Rs 330 and 90-day forward Rs 337. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 330 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 337 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 43: USD/PKR spot Rs 327 and 90-day forward Rs 334. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 327 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 334 reducing exchange rate uncertainty✓

FX scenario 42: USD/PKR spot Rs 325 and 90-day forward Rs 336. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 336 reducing exchange rate uncertainty✓
2. Bspot rate Rs 325 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 41: USD/PKR spot Rs 323 and 90-day forward Rs 333. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 323 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 333 reducing exchange rate uncertainty✓

FX scenario 40: USD/PKR spot Rs 329 and 90-day forward Rs 338. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 329 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 338 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 39: USD/PKR spot Rs 327 and 90-day forward Rs 334. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 327 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 334 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 38: USD/PKR spot Rs 324 and 90-day forward Rs 331. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 324 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 331 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 37: USD/PKR spot Rs 322 and 90-day forward Rs 328. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 328 reducing exchange rate uncertainty✓
2. Bspot rate Rs 322 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 36: USD/PKR spot Rs 320 and 90-day forward Rs 331. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 320 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 331 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 35: USD/PKR spot Rs 318 and 90-day forward Rs 327. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 327 reducing exchange rate uncertainty✓
2. Bspot rate Rs 318 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 34: USD/PKR spot Rs 316 and 90-day forward Rs 324. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 324 reducing exchange rate uncertainty✓
2. Bspot rate Rs 316 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 33: USD/PKR spot Rs 313 and 90-day forward Rs 321. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 313 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 321 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 32: USD/PKR spot Rs 319 and 90-day forward Rs 325. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 319 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 325 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 31: USD/PKR spot Rs 317 and 90-day forward Rs 322. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 317 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 322 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 49: USD/PKR spot Rs 333 and 90-day forward Rs 339. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 333 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 339 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 50: USD/PKR spot Rs 335 and 90-day forward Rs 343. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 343 reducing exchange rate uncertainty✓
2. Bspot rate Rs 335 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 51: USD/PKR spot Rs 337 and 90-day forward Rs 346. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 337 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 346 reducing exchange rate uncertainty✓

Spot exchange rate is

1. Arate for delivery in one year only✓
2. Binflation differential only✓
3. Cinterest tax rate✓
4. Dcurrent rate for immediate currency delivery✓

Forward exchange rate is

1. Aalways equal to spot with no premium✓
2. Bgovernment tax rate✓
3. Cagreed rate for future currency exchange✓
4. Dstock dividend rate✓

FX scenario 48: USD/PKR spot Rs 338 and 90-day forward Rs 350. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 338 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 350 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

Purchasing Power Parity suggests exchange rates adjust to

1. Astock market indices only✓
2. Bcorporate dividend policies only✓
3. Crelative price levels between countries✓
4. Dwarehouse rent only✓

Interest Rate Parity relates

1. Ainventory costs to FX✓
2. Bforward premium/discount to interest rate differential✓
3. Cbeta to exchange rate✓
4. Daudit fees to forwards✓

Transaction exposure in international finance is

1. Atranslation of financial statements only✓
2. Bpolitical nationalization risk only✓
3. Cemployee turnover risk✓
4. Drisk from settling transactions in foreign currency✓

Translation exposure arises from

1. Aconverting foreign subsidiary financial statements✓
2. Bexport sales contracts only✓
3. Cimport tariffs only✓
4. Ddomestic payroll only✓

Economic exposure reflects

1. Aonly daily spot fluctuations ignored✓
2. Blong-term impact of exchange rate changes on firm value✓
3. Conly accounting gains✓
4. Donly petty cash balances✓

Pakistani rupee depreciation against US dollar makes

1. Aexports relatively cheaper in dollar terms✓
2. Bimports cheaper in rupee terms always✓
3. Cforeign debt denominated in dollars smaller in rupees✓
4. Dremittances worthless✓

Hedging foreign exchange risk with forward contract

1. Aeliminates all business risk✓
2. Blocks in future exchange rate reducing uncertainty✓
3. Cguarantees profit on exports✓
4. Dremoves need for pricing✓

FX scenario 1: USD/PKR spot Rs 275 and 90-day forward Rs 277. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 275 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 277 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 2: USD/PKR spot Rs 277 and 90-day forward Rs 280. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 280 reducing exchange rate uncertainty✓
2. Bspot rate Rs 277 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 3: USD/PKR spot Rs 279 and 90-day forward Rs 284. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 279 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 284 reducing exchange rate uncertainty✓

FX scenario 4: USD/PKR spot Rs 282 and 90-day forward Rs 287. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 282 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 287 reducing exchange rate uncertainty✓

FX scenario 5: USD/PKR spot Rs 284 and 90-day forward Rs 290. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 284 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 290 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 6: USD/PKR spot Rs 286 and 90-day forward Rs 294. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 286 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 294 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 7: USD/PKR spot Rs 288 and 90-day forward Rs 291. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 288 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 291 reducing exchange rate uncertainty✓

FX scenario 8: USD/PKR spot Rs 290 and 90-day forward Rs 294. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 290 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 294 reducing exchange rate uncertainty✓

FX scenario 9: USD/PKR spot Rs 285 and 90-day forward Rs 289. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 285 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 289 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 10: USD/PKR spot Rs 287 and 90-day forward Rs 293. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 293 reducing exchange rate uncertainty✓
2. Bspot rate Rs 287 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 11: USD/PKR spot Rs 289 and 90-day forward Rs 296. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 289 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 296 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 12: USD/PKR spot Rs 291 and 90-day forward Rs 299. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 291 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 299 reducing exchange rate uncertainty✓

FX scenario 13: USD/PKR spot Rs 293 and 90-day forward Rs 297. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 293 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 297 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 14: USD/PKR spot Rs 296 and 90-day forward Rs 300. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 300 reducing exchange rate uncertainty✓
2. Bspot rate Rs 296 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 15: USD/PKR spot Rs 298 and 90-day forward Rs 303. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 298 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 303 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 16: USD/PKR spot Rs 300 and 90-day forward Rs 307. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 300 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 307 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 17: USD/PKR spot Rs 294 and 90-day forward Rs 302. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 294 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 302 reducing exchange rate uncertainty✓

FX scenario 18: USD/PKR spot Rs 296 and 90-day forward Rs 305. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 296 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 305 reducing exchange rate uncertainty✓

FX scenario 19: USD/PKR spot Rs 299 and 90-day forward Rs 302. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 299 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 302 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 20: USD/PKR spot Rs 301 and 90-day forward Rs 306. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 301 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 306 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 21: USD/PKR spot Rs 303 and 90-day forward Rs 309. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 303 is guaranteed for all future years✓
2. Bforward contract locks dollar purchase at Rs 309 reducing exchange rate uncertainty✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 22: USD/PKR spot Rs 305 and 90-day forward Rs 312. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 305 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 312 reducing exchange rate uncertainty✓

FX scenario 23: USD/PKR spot Rs 307 and 90-day forward Rs 316. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 307 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward always equals spot with zero premium or discount✓
4. Dforward contract locks dollar purchase at Rs 316 reducing exchange rate uncertainty✓

FX scenario 24: USD/PKR spot Rs 310 and 90-day forward Rs 319. A Pakistani importer hedging payables should understand

1. Aforward contract locks dollar purchase at Rs 319 reducing exchange rate uncertainty✓
2. Bspot rate Rs 310 is guaranteed for all future years✓
3. Chedging eliminates all business and credit risk✓
4. Dforward always equals spot with zero premium or discount✓

FX scenario 25: USD/PKR spot Rs 304 and 90-day forward Rs 308. A Pakistani importer hedging payables should understand

1. Aspot rate Rs 304 is guaranteed for all future years✓
2. Bhedging eliminates all business and credit risk✓
3. Cforward contract locks dollar purchase at Rs 308 reducing exchange rate uncertainty✓
4. Dforward always equals spot with zero premium or discount✓

Insurance line 27: group life coverage in Pakistan addresses

1. Adeath or maturity benefits to employee families✓
2. Bguaranteed stock market capital gains✓
3. Ccorporate tax evasion schemes✓
4. Dunlimited speculative trading profits✓

Risk retention means

1. Aalways transfers all risk to insurer✓
2. Beliminates possibility of loss✓
3. Creplaces need for internal controls✓
4. Dorganization accepts loss and funds it internally✓

Deductible in insurance policy

1. Atotal claim paid by insurer from first rupee always✓
2. Billegal under all policies✓
3. Camount borne by insured before insurer pays claim✓
4. Dsame as sum insured✓

Principle of indemnity in insurance means

1. Ainsured receives triple damages always✓
2. Binsurer pays unlimited arbitrary sums✓
3. Cinsured restored to financial position before loss not profiting✓
4. Dpremium is optional after claim✓

Utmost good faith (uberrimae fidei) requires

1. Ahiding pre-existing conditions✓
2. Bfull disclosure of material facts by both parties✓
3. Cmisrepresenting risk deliberately✓
4. Davoiding all documentation✓

Insurable interest exists when

1. Aperson bets on stranger life only✓
2. Bno economic stake in subject matter✓
3. Cpolicyholder suffers financial loss if insured event occurs✓
4. Donly speculative gain sought✓

Life insurance in Pakistan is regulated by

1. ASBP as primary insurer✓
2. BPSX listing rules only✓
3. CSECP insurance division framework✓
4. Dprovincial motor vehicle authority✓

Reinsurance is

1. Apolicy sold to individuals only✓
2. Btax on insurance premiums✓
3. Cgovernment pension scheme✓
4. Dinsurance purchased by insurers to spread large risks✓

Pure risk involves

1. Astock price appreciation only✓
2. Bonly loss or no-loss outcomes not speculative gain✓
3. Ccurrency trading profit only✓
4. Dcommodity speculation only✓

Insurance line 32: microinsurance health coverage in Pakistan addresses

1. Aguaranteed stock market capital gains✓
2. Bmedical treatment and hospitalization expenses✓
3. Ccorporate tax evasion schemes✓
4. Dunlimited speculative trading profits✓

Insurance line 27: group life coverage in Pakistan addresses

1. Adeath or maturity benefits to employee families✓
2. Bguaranteed stock market capital gains✓
3. Ccorporate tax evasion schemes✓
4. Dunlimited speculative trading profits✓

Insurance line 32: microinsurance health coverage in Pakistan addresses

1. Aguaranteed stock market capital gains✓
2. Bmedical treatment and hospitalization expenses✓
3. Ccorporate tax evasion schemes✓
4. Dunlimited speculative trading profits✓

Principle of indemnity in insurance means

1. Ainsured receives triple damages always✓
2. Binsurer pays unlimited arbitrary sums✓
3. Cinsured restored to financial position before loss not profiting✓
4. Dpremium is optional after claim✓

Utmost good faith (uberrimae fidei) requires

1. Ahiding pre-existing conditions✓
2. Bfull disclosure of material facts by both parties✓
3. Cmisrepresenting risk deliberately✓
4. Davoiding all documentation✓

Insurable interest exists when

1. Aperson bets on stranger life only✓
2. Bno economic stake in subject matter✓
3. Cpolicyholder suffers financial loss if insured event occurs✓
4. Donly speculative gain sought✓

Life insurance in Pakistan is regulated by

1. ASBP as primary insurer✓
2. BPSX listing rules only✓
3. CSECP insurance division framework✓
4. Dprovincial motor vehicle authority✓

Reinsurance is

1. Apolicy sold to individuals only✓
2. Btax on insurance premiums✓
3. Cgovernment pension scheme✓
4. Dinsurance purchased by insurers to spread large risks✓

Pure risk involves

1. Astock price appreciation only✓
2. Bonly loss or no-loss outcomes not speculative gain✓
3. Ccurrency trading profit only✓
4. Dcommodity speculation only✓

Deductible in insurance policy

1. Atotal claim paid by insurer from first rupee always✓
2. Billegal under all policies✓
3. Camount borne by insured before insurer pays claim✓
4. Dsame as sum insured✓

Risk retention means

1. Aalways transfers all risk to insurer✓
2. Beliminates possibility of loss✓
3. Creplaces need for internal controls✓
4. Dorganization accepts loss and funds it internally✓