Given a Cash Value Policy with the Following Characteristics: Face

question 39

Multiple Choice

Given a cash value policy with the following characteristics: face value = $200,000,cash value = $50,000,outstanding loans = $10,000 and surrender charges = $1,000,the cash surrender value is

• A)$199,000.
• B)$59,000.
• C)$49,000.
• D)$39,000.

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Definitions:

Total Revenue

The total income generated by a company from the sale of goods or services before any expenses are subtracted.

Economies of Scale

Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.

Decreasing Marginal Product

A principle where each additional unit of input results in a smaller increase in output, after a certain point, indicating declining efficiency.

Total Cost Curve

A graphical representation that illustrates how the total cost of producing a good changes in relation to the quantity produced, considering both fixed and variable costs.