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CAIB 1 Practice Questions (100) TEST FINAL EXAM AND
PRACTICE EXAM 20262027 BANK 2 VERSIONS QUESTIONS
WITH DETAILED VERIFIED ANSWERS EXAM QUESTIONS
WILL COME FROM HERE (100% CORRECT ANSWERS A+
GRADED
Consideration is...
a. The law of insurance
b. A promise between parties
c. A contract's binding force
d. An exchange of something of value - ANSWER--d. An exchange of
something of value
A stock company is...
a. A company that invests in other companies
b. A company owned by stockholders who provide the capital to start
and run the company
c. Is owned by customers of the company
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d. A company that owns livestock - ANSWER--b. A company owned by
stockholders who provide the capital to start and run the company
The difference between pure and speculative risk is...
a. Speculative risk is insurable but pure risk is not
b. Speculative risk means that there is a chance to gain or lose whereas
one can only lose with pure risk
c. Speculative risk means that there is only the chance to lose whereas
pure risk means you have a chance to win too
d. Speculative risk is a term invented by marine insurance companies in
1864 - ANSWER--b. Speculative risk means that there is a chance to gain
or lose whereas one can only lose with pure risk
A legally enforceable agreement between 2 or more parties is defined
as...
a. A contract
b. An agreement
c. A will
d. A contract of consideration - ANSWER--a. A contract
What are the 4 methods of dealing with risk? - ANSWER--Avoidance,
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control,
retention,
transfer
A reduction in value is called a...
a. Loss
b. Unlucky situation
c. Claim
d. Transfer - ANSWER--a. Loss
What elements must be present to constitute a legal contract?
a. Parties to the contract, the contract itself, consideration
b. Parties to the contract, a written document, consideration, and legal
purpose
c. Agreement, consideration, legality of object, legal capacity, genuine
intention
d. Competent parties, consideration, warranty, and legal purpose -
ANSWER--c. Agreement, consideration, legality of object, legal capacity,
genuine intention
CAIB 1 Practice Questions (100) TEST FINAL EXAM AND
PRACTICE EXAM 20262027 BANK 2 VERSIONS QUESTIONS
WITH DETAILED VERIFIED ANSWERS EXAM QUESTIONS
WILL COME FROM HERE (100% CORRECT ANSWERS A+
GRADED
Consideration is...
a. The law of insurance
b. A promise between parties
c. A contract's binding force
d. An exchange of something of value - ANSWER--d. An exchange of
something of value
A stock company is...
a. A company that invests in other companies
b. A company owned by stockholders who provide the capital to start
and run the company
c. Is owned by customers of the company
,2|Page
d. A company that owns livestock - ANSWER--b. A company owned by
stockholders who provide the capital to start and run the company
The difference between pure and speculative risk is...
a. Speculative risk is insurable but pure risk is not
b. Speculative risk means that there is a chance to gain or lose whereas
one can only lose with pure risk
c. Speculative risk means that there is only the chance to lose whereas
pure risk means you have a chance to win too
d. Speculative risk is a term invented by marine insurance companies in
1864 - ANSWER--b. Speculative risk means that there is a chance to gain
or lose whereas one can only lose with pure risk
A legally enforceable agreement between 2 or more parties is defined
as...
a. A contract
b. An agreement
c. A will
d. A contract of consideration - ANSWER--a. A contract
What are the 4 methods of dealing with risk? - ANSWER--Avoidance,
, 3|Page
control,
retention,
transfer
A reduction in value is called a...
a. Loss
b. Unlucky situation
c. Claim
d. Transfer - ANSWER--a. Loss
What elements must be present to constitute a legal contract?
a. Parties to the contract, the contract itself, consideration
b. Parties to the contract, a written document, consideration, and legal
purpose
c. Agreement, consideration, legality of object, legal capacity, genuine
intention
d. Competent parties, consideration, warranty, and legal purpose -
ANSWER--c. Agreement, consideration, legality of object, legal capacity,
genuine intention
