COMMERCE PAGE 1
Commerce- Page 1 MCQs
1. The responsibility of the organization to the workers includes :
(i) The payment of fair wages
(ii) Arrangement of proper training and education of the workers
(iii) The installation of an efficient grievance handling system
(iv) Welfare of family members
(v) The provision of the best possible working conditions
Identify the correct combination :
(A) (i), (ii), (iii) and (v)
(B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (iv)
(D) (i), (iii), (iv) and (v)
Answer: A
2. Match the items of List – I with List – II : List – I List – II
a. Industries Development Regulation Act i. 1947
b. Import and Export Control Act ii. 1948
c. Foreign Exchange Management Act iii. 1951
d. Factories Act iv. 1999
Identify the correct combination :
Codes : a b c d
(A) i iii iv ii
(B) iii i ii iv
(C) iii i iv ii
(D) iii iv ii i
Answer: C
3. Which among the following is not a correct sequential combination ?
(A) Macro Environment → Economic Environment → National Income → Pattern of Income Distribution
(B) Business Environment → Internal Environment → Business Ethics → Payment of Fair Wages
(C) Business Environment → External Environment → Micro Environment → Suppliers
(D) Macro Environment → External Environment → Customers → Prospects of Business Development
Answer: D
4. Which among the following is not a correct combination ?
(A) Industrial Policy – 1948
(B) Industrial Policy Statement – 1977
(C) Industrial Policy Statement – 1980
(D) Industrial Policy Statement – 1991
Answer: D
5. Statement – I : The industrial policy of the Government of India is aimed at increasing the tempo of industrial development.
Statement – II : After the New Industrial Policy – 1991, the Balance of Trade for India has always been positive.
Codes :
(A) Statement (I) is correct, but (II) is incorrect.
(B) Statement (II) is correct, but (I) is incorrect.
(C) Both Statements (I) and (II) are correct.
(D) Both Statements (I) and (II) are incorrect.
Answer: A
6. Current Ratio 2.5, Liquid Ratio 1.5 and Working Capital 60,000.
What is Current Assets ?
(A) 60,000
(B) 80,000
(C) 1,00,000
(D) 1,20,000
Answer: C
7. X, Y, Z are sharing profits in the ratio of 6 : 5 : 3. A is admitted into partnership for 1/8th share. The sacrificing ratio of X, Y and Z is
(A) Equal
(B) 6 : 5 : 3
(C) 5/14, 4/14, 5/14
(D) 4 : 5 : 5
Answer: B
8. Accounting information given by a company : Total assets turnover 3 times Net profit margin 10% Total assets 1,00,000 The net profit is
(A) 10,000
(B) 15,000
(C) 25,000
(D) 30,000
Answer: D
9. “Make sufficient provisions for future losses, but do not anticipate future profits.” This statement is in accordance to the concept of :
(A) Matching
(B) Objectivity
(C) Conservatism
(D) Materiality
Answer: C
10. When a firm is dissolved, profit or loss on realisation is shared by the partners
(A) Equal
(B) In the ratio of their capital balances
(C) In the profit sharing ratio
(D) In the ratio laid down in Garner Vs. Murray
Answer: C
11. The inverse relationship between variations in the price and quantity demanded is not due to
(A) Income Effects
(B) Substitution Effects
(C) Future Expectations
(D) Law of Diminishing Marginal Utility
Answer: C
12. Consumer is said to be in equilibrium, maximizing his total utility, when
(A) the marginal utilities of the two goods consumed are equal.
(B) the proportions of the marginal utilities and respective prices are equal.
(C) the consumer gets full satisfaction from the consumption.
(D) the consumer feels satisfied with his expenditure on the various goods.
Answer: B
13. Match the items of the following two lists and suggest the correct code : List – I List – II a. Zero Income Elasticity i. Substitute goods
b. Unit Cross Elasticity ii. Complementary goods
c. Positive Cross Elasticity iii. Indifferent goods
d. Negative Cross Elasticity iv. Independent goods
Choose the correct option :
Codes : a b c d
(A) iii ii i iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv i ii iii
Answer: C
14. Statement (A) : The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution.
Statement (B) : The lesser the convexity of the isoquant curve the greater the possibility of the complementarity of the two inputs.
Codes :
(A) Statements (A) and (B) both are correct.
(B) Statement (A) is correct but (B) is incorrect.
(C) Statement (A) is incorrect but (B) is correct.
(D) Statements (A) and (B) both are incorrect.
Answer: B
15. Match the items of the List – I with those of List – II and suggest the correct code : List – I List – II
a. Constant average cost over a range of output i. Economic capacity
b. Average cost becomes constant momentarily ii. Reserve capacity
c. Normal average cost is a U-shaped curve iii. Production and Managerials costs effects
d. Modern Long-run average cost is L-shaped iv. Economies and Diseconomies
Codes : a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv ii i
(D) ii i iv iii
Answer: D
16. Which one of the following is not probability sampling method ?
(A) Simple Random Sampling
(B) Cluster Sampling
(C) Judgemental Sampling
(D) Systematic Sampling
Answer: C
17. The research carried out to expand the knowledge of a particular field is known as
(A) Applied research
(B) Qualitative research
(C) Quantitative research
(D) Basic research
Answer: D
18. In univariate data analysis t-test is used when the data are in the form of
(A) Metric data with one sample
(B) Non-metric data
(C) Non-metric data with independent variable
(D) Metric data with independent two sample
Answer: D
19. To show the trend for a variable, which one of the presentation method is used ?
(A) Histogram
(B) Frequency polygon
(C) Line graph
(D) Scatter graph
Answer: C
20. Which one of the following objectives is not the objective of secondary data collection ?
(A) Identify the problem
(B) Test the hypotheses of the relevant present problem
(C) Better define the problem
(D) Interpret primary data more insightfully
Answer: B
21. The structure of an organisation in which there is separation of ownership and management is called
(A) Sole proprietorship
(B) Partnership
(C) Company
(D) Cooperative society
Answer: C
22. When a person transacts with a company on matters which is beyond the power of the company, the person will be governed by the Doctrine of
(A) Management by Exception
(B) Constructive Notice
(C) Indoor Management
(D) Self Management
Answer: B
23. Assertion (A) : MBO is effective way of planning and organizing the work.
Reason (R) : Employees participate in setting the objectives.
Codes :
(A) Both (A) and (R) are true.
(B) Both (A) and (R) are false.
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is correct.
Answer: A
24. The appropriate sequence of the formation of a company are in the following order : (A) Promotion, commencement of business and incorporation
(B) Promotion, incorporation, capital subscription and commencement of business
(C) Capital subscription, promotion, incorporation and commencement of business
(D) Incorporation, capital subscription, commencement of business and promotion
Answer: B
25. Delegation of authority makes the size of the organization :
(A) Smaller organization
(B) Larger organization
(C) Very big organization
(D) It does not affect the size of the organization
Answer: B
26. Managerial Grid suggests the following as the best leader behaviour :
(A) High structure and high consideration
(B) Low structure and low consideration
(C) High concern both for production and people
(D) Low concern both for production and people
Answer: C
27. Marketing strategy development is also known as
(A) Marketing Control
(B) Marketing Exercise
(C) Marketing Planning
(D) Situation Analysis
Answer: C
28. For most people, the purchase of cheese for daily use can be described as a
(A) Completely novel buy
(B) Modified re-buy
(C) Routine re-buy
(D) High involvement product
Answer: C
29. The promotion mix of a company consists of these –
(A) Marketing communication, promotion decisions
(B) Personal selling, product objectives
(C) Advertising, personal selling, sales promotion, publicity and public relations
(D) Consumer psychology, buyers motives, brand equity
Answer: C
30. Rational buying motives that determine purchase decisions are mostly based on
(A) Price factor
(B) Psychological factors
(C) Quality of product
(D) Advertisement
Answer: B
31. Statement – I : Capital structure refers to composition of long-term funds. Statement – II : These include equity share capital, preference share capital, debentures, all debts and all reserves.
(A) Both Statements I and II are correct.
(B) Statement I is correct but Statement II is incorrect.
(C) Statement I is incorrect but Statement II is correct.
(D) Both statements are incorrect.
Answer: B
32. Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Pay-back Rate of Return i. Discounted Cash Flow Technique
b. Internal Rate of Return ii. Compounded values of investments and returns
c. Benefit Cost Ratio iii. Crude method for project evaluation
d. Net Terminal Value Method iv. Varying sized projects evaluation
Codes : a b c d
(A) ii iii i iv
(B) iii i iv ii
(C) i iv ii iii
(D) iv ii iii i
Answer: B
33. Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Realised yield method i. Cost of equity share capital
b. Taxation ii. Cost of equity capital
c. Cost of total capital employed iii. Cost of debt capital
d. Dividend growth is a consideration iv. Weighted cost of capital
Codes : a b c d
(A) iv iii ii i
(B) ii iv i iii
(C) ii iii iv i
(D) i ii iii iv
Answer: C
34. Cash Flow Management involves :
I. Lock-box system
II. Marketable securities
III. Playing the float
IV. Concentration Bank Account
Codes :
(A) I, II and III only
(B) II, III and IV only
(C) I, III and IV only
(D) I, II and IV only
Answer: C
35. Dividend capitalisation model was developed by
(A) Ezra Solomon
(B) Myron J. Gordon
(C) James E. Walter
(D) Merton H. Miller and Franco Modigliani
Answer: B
36. The process of narrowing a large number of candidates to a smaller field is called
(A) Rushing
(B) Recruitment
(C) Selection
(D) Enrollment
Answer: C
37. According to which theory, people are motivated to the extent to which they expect that their actions will help in achievement of goals ?
(A) Vroom’s Vector Valence Theory
(B) Need Theory
(C) Z Theory
(D) X Theory
Answer: A
38. Match the items of List – I with List – II and select the correct code :
List – I List – II
a. Getting Effective Leadership in the Industrial Organization i. Dale Yoder
b. The Nature of Leadership, Organization and Management ii. Alford and Beatty
c. Industrial Management iii. Douglas McGregor
d. Personnel Management iv. Chester I. Bernard
Codes : a b c d
(A) i ii iii iv
(B) iii iv ii i
(C) iii iv i ii
(D) iv iii ii i
Answer: B
39. Match the items of List – I with List – II :
List – I List – II
a. AITUC i. Indian National Congress
b. BMS ii. Socialists
c. INTUC iii. Rashtriya Swayamsevak Sangh
d. CITU iv. Communist Party of India
Identify the correct combination :
Codes : a b c d
(A) iv iii ii i
(B) iv i ii iii
(C) iv iii i ii
(D) iv i iii ii
Answer: C
40. The main characteristics of Weber’s bureaucracy are :
(A) Specialization
(B) Hierarchy of authority
(C) System of rules
(D) All of the above
Answer: D
41. Match the items of List – I with List – II :
List – I List – II
a. RBI Nationalization i. 1964
b. Imperial Bank Nationalization ii. 1949
c. Nationalization of 14 Commercial Banks iii. 1955
d. Establishment of IDBI iv. 1969 Identify the correct combination :
Codes : a b c d
(A) i ii iii iv
(B) ii iii i iv
(C) iii ii iv i
(D) ii iii iv i
Answer: D
42. As per the RBI Act, 1934, the following functions are described as the functions of a Central Bank :
(i) Banking functions
(ii) Advisory functions
(iii) Supervisory functions
(iv) Promotional functions Identify the correct combination :
(A) (i), (iii) and (iv)
(B) (i), (ii) and (iv)
(C) (ii), (iii) and (iv)
(D) Only (i) and (iii)
Answer: A
43. Phishing is an attempt to acquire :
(A) Loan from unauthorized firms
(B) Sensitive information such as username, password, etc.
(C) Personal information from banks
(D) None of the above
Answer: B
44. What is Call Money ?
(A) Money borrowed or lent for a day or overnight.
(B) Money borrowed for more than one day but upto 3 days.
(C) Money borrowed for more than one day but upto 7 days.
(D) Money borrowed for more than one day but upto 14 days.
Answer: A
45. The Regulatory Authority of Regional Rural Banks is
(A) NABARD
(B) Central Government
(C) State Government
(D) Sponsor Bank
Answer: A
46. Which of the following is not ensured to the consumer in the globalization ?
(A) Lower prices
(B) Better selection
(C) Clear origin of goods and services
(D) Improved services
Answer: C
47. In international trade which of the following is a non-tariff trade barrier ?
(A) Quotas
(B) Import bans
(C) Export controls
(D) Anti dumping laws
Answer: B
48. Match the items of List – I with items in List – II and select a correct code :
List – I List – II
a. Current Account i. Official Capital
b. Capital Account ii. Reserves from foreign countries
c. Unilateral Payments iii. Reparations
d. Official Statement Account iv. Visible Exports and Imports
Codes : a b c d
(A) i iii ii iv
(B) iv i ii iii
(C) iv i iii ii
(D) iii ii i iv
Answer: C
49. Match the items of List – I with the items in List – II and select a correct code : List – I List – II
a. Vishesh Krishi Upaj Yojana i. Scheme intended to reduce difficulties of exporters
b. EPCG ii. Duty Entitlement Pass Book
c. DFRC iii. To boost exports of fruits, vegetables, flowers, minor forest produce etc.
d. DEPB iv. Relating to import of duty free fuel
Codes : a b c d
(A) iv i ii iii
(B) iv iii i ii
(C) iii iv ii i
(D) iii i iv ii
Answer: D
50. Which of the following is not the agency of World Bank ?
(A) MIGA
(B) ICSID
(C) ADB
(D) IDA
Answer: C
(i) The payment of fair wages
(ii) Arrangement of proper training and education of the workers
(iii) The installation of an efficient grievance handling system
(iv) Welfare of family members
(v) The provision of the best possible working conditions
Identify the correct combination :
(A) (i), (ii), (iii) and (v)
(B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (iii) and (iv)
(D) (i), (iii), (iv) and (v)
Answer: A
2. Match the items of List – I with List – II : List – I List – II
a. Industries Development Regulation Act i. 1947
b. Import and Export Control Act ii. 1948
c. Foreign Exchange Management Act iii. 1951
d. Factories Act iv. 1999
Identify the correct combination :
Codes : a b c d
(A) i iii iv ii
(B) iii i ii iv
(C) iii i iv ii
(D) iii iv ii i
Answer: C
3. Which among the following is not a correct sequential combination ?
(A) Macro Environment → Economic Environment → National Income → Pattern of Income Distribution
(B) Business Environment → Internal Environment → Business Ethics → Payment of Fair Wages
(C) Business Environment → External Environment → Micro Environment → Suppliers
(D) Macro Environment → External Environment → Customers → Prospects of Business Development
Answer: D
4. Which among the following is not a correct combination ?
(A) Industrial Policy – 1948
(B) Industrial Policy Statement – 1977
(C) Industrial Policy Statement – 1980
(D) Industrial Policy Statement – 1991
Answer: D
5. Statement – I : The industrial policy of the Government of India is aimed at increasing the tempo of industrial development.
Statement – II : After the New Industrial Policy – 1991, the Balance of Trade for India has always been positive.
Codes :
(A) Statement (I) is correct, but (II) is incorrect.
(B) Statement (II) is correct, but (I) is incorrect.
(C) Both Statements (I) and (II) are correct.
(D) Both Statements (I) and (II) are incorrect.
Answer: A
6. Current Ratio 2.5, Liquid Ratio 1.5 and Working Capital 60,000.
What is Current Assets ?
(A) 60,000
(B) 80,000
(C) 1,00,000
(D) 1,20,000
Answer: C
7. X, Y, Z are sharing profits in the ratio of 6 : 5 : 3. A is admitted into partnership for 1/8th share. The sacrificing ratio of X, Y and Z is
(A) Equal
(B) 6 : 5 : 3
(C) 5/14, 4/14, 5/14
(D) 4 : 5 : 5
Answer: B
8. Accounting information given by a company : Total assets turnover 3 times Net profit margin 10% Total assets 1,00,000 The net profit is
(A) 10,000
(B) 15,000
(C) 25,000
(D) 30,000
Answer: D
9. “Make sufficient provisions for future losses, but do not anticipate future profits.” This statement is in accordance to the concept of :
(A) Matching
(B) Objectivity
(C) Conservatism
(D) Materiality
Answer: C
10. When a firm is dissolved, profit or loss on realisation is shared by the partners
(A) Equal
(B) In the ratio of their capital balances
(C) In the profit sharing ratio
(D) In the ratio laid down in Garner Vs. Murray
Answer: C
11. The inverse relationship between variations in the price and quantity demanded is not due to
(A) Income Effects
(B) Substitution Effects
(C) Future Expectations
(D) Law of Diminishing Marginal Utility
Answer: C
12. Consumer is said to be in equilibrium, maximizing his total utility, when
(A) the marginal utilities of the two goods consumed are equal.
(B) the proportions of the marginal utilities and respective prices are equal.
(C) the consumer gets full satisfaction from the consumption.
(D) the consumer feels satisfied with his expenditure on the various goods.
Answer: B
13. Match the items of the following two lists and suggest the correct code : List – I List – II a. Zero Income Elasticity i. Substitute goods
b. Unit Cross Elasticity ii. Complementary goods
c. Positive Cross Elasticity iii. Indifferent goods
d. Negative Cross Elasticity iv. Independent goods
Choose the correct option :
Codes : a b c d
(A) iii ii i iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv i ii iii
Answer: C
14. Statement (A) : The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution.
Statement (B) : The lesser the convexity of the isoquant curve the greater the possibility of the complementarity of the two inputs.
Codes :
(A) Statements (A) and (B) both are correct.
(B) Statement (A) is correct but (B) is incorrect.
(C) Statement (A) is incorrect but (B) is correct.
(D) Statements (A) and (B) both are incorrect.
Answer: B
15. Match the items of the List – I with those of List – II and suggest the correct code : List – I List – II
a. Constant average cost over a range of output i. Economic capacity
b. Average cost becomes constant momentarily ii. Reserve capacity
c. Normal average cost is a U-shaped curve iii. Production and Managerials costs effects
d. Modern Long-run average cost is L-shaped iv. Economies and Diseconomies
Codes : a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv ii i
(D) ii i iv iii
Answer: D
16. Which one of the following is not probability sampling method ?
(A) Simple Random Sampling
(B) Cluster Sampling
(C) Judgemental Sampling
(D) Systematic Sampling
Answer: C
17. The research carried out to expand the knowledge of a particular field is known as
(A) Applied research
(B) Qualitative research
(C) Quantitative research
(D) Basic research
Answer: D
18. In univariate data analysis t-test is used when the data are in the form of
(A) Metric data with one sample
(B) Non-metric data
(C) Non-metric data with independent variable
(D) Metric data with independent two sample
Answer: D
19. To show the trend for a variable, which one of the presentation method is used ?
(A) Histogram
(B) Frequency polygon
(C) Line graph
(D) Scatter graph
Answer: C
20. Which one of the following objectives is not the objective of secondary data collection ?
(A) Identify the problem
(B) Test the hypotheses of the relevant present problem
(C) Better define the problem
(D) Interpret primary data more insightfully
Answer: B
21. The structure of an organisation in which there is separation of ownership and management is called
(A) Sole proprietorship
(B) Partnership
(C) Company
(D) Cooperative society
Answer: C
22. When a person transacts with a company on matters which is beyond the power of the company, the person will be governed by the Doctrine of
(A) Management by Exception
(B) Constructive Notice
(C) Indoor Management
(D) Self Management
Answer: B
23. Assertion (A) : MBO is effective way of planning and organizing the work.
Reason (R) : Employees participate in setting the objectives.
Codes :
(A) Both (A) and (R) are true.
(B) Both (A) and (R) are false.
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is correct.
Answer: A
24. The appropriate sequence of the formation of a company are in the following order : (A) Promotion, commencement of business and incorporation
(B) Promotion, incorporation, capital subscription and commencement of business
(C) Capital subscription, promotion, incorporation and commencement of business
(D) Incorporation, capital subscription, commencement of business and promotion
Answer: B
25. Delegation of authority makes the size of the organization :
(A) Smaller organization
(B) Larger organization
(C) Very big organization
(D) It does not affect the size of the organization
Answer: B
26. Managerial Grid suggests the following as the best leader behaviour :
(A) High structure and high consideration
(B) Low structure and low consideration
(C) High concern both for production and people
(D) Low concern both for production and people
Answer: C
27. Marketing strategy development is also known as
(A) Marketing Control
(B) Marketing Exercise
(C) Marketing Planning
(D) Situation Analysis
Answer: C
28. For most people, the purchase of cheese for daily use can be described as a
(A) Completely novel buy
(B) Modified re-buy
(C) Routine re-buy
(D) High involvement product
Answer: C
29. The promotion mix of a company consists of these –
(A) Marketing communication, promotion decisions
(B) Personal selling, product objectives
(C) Advertising, personal selling, sales promotion, publicity and public relations
(D) Consumer psychology, buyers motives, brand equity
Answer: C
30. Rational buying motives that determine purchase decisions are mostly based on
(A) Price factor
(B) Psychological factors
(C) Quality of product
(D) Advertisement
Answer: B
31. Statement – I : Capital structure refers to composition of long-term funds. Statement – II : These include equity share capital, preference share capital, debentures, all debts and all reserves.
(A) Both Statements I and II are correct.
(B) Statement I is correct but Statement II is incorrect.
(C) Statement I is incorrect but Statement II is correct.
(D) Both statements are incorrect.
Answer: B
32. Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Pay-back Rate of Return i. Discounted Cash Flow Technique
b. Internal Rate of Return ii. Compounded values of investments and returns
c. Benefit Cost Ratio iii. Crude method for project evaluation
d. Net Terminal Value Method iv. Varying sized projects evaluation
Codes : a b c d
(A) ii iii i iv
(B) iii i iv ii
(C) i iv ii iii
(D) iv ii iii i
Answer: B
33. Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Realised yield method i. Cost of equity share capital
b. Taxation ii. Cost of equity capital
c. Cost of total capital employed iii. Cost of debt capital
d. Dividend growth is a consideration iv. Weighted cost of capital
Codes : a b c d
(A) iv iii ii i
(B) ii iv i iii
(C) ii iii iv i
(D) i ii iii iv
Answer: C
34. Cash Flow Management involves :
I. Lock-box system
II. Marketable securities
III. Playing the float
IV. Concentration Bank Account
Codes :
(A) I, II and III only
(B) II, III and IV only
(C) I, III and IV only
(D) I, II and IV only
Answer: C
35. Dividend capitalisation model was developed by
(A) Ezra Solomon
(B) Myron J. Gordon
(C) James E. Walter
(D) Merton H. Miller and Franco Modigliani
Answer: B
36. The process of narrowing a large number of candidates to a smaller field is called
(A) Rushing
(B) Recruitment
(C) Selection
(D) Enrollment
Answer: C
37. According to which theory, people are motivated to the extent to which they expect that their actions will help in achievement of goals ?
(A) Vroom’s Vector Valence Theory
(B) Need Theory
(C) Z Theory
(D) X Theory
Answer: A
38. Match the items of List – I with List – II and select the correct code :
List – I List – II
a. Getting Effective Leadership in the Industrial Organization i. Dale Yoder
b. The Nature of Leadership, Organization and Management ii. Alford and Beatty
c. Industrial Management iii. Douglas McGregor
d. Personnel Management iv. Chester I. Bernard
Codes : a b c d
(A) i ii iii iv
(B) iii iv ii i
(C) iii iv i ii
(D) iv iii ii i
Answer: B
39. Match the items of List – I with List – II :
List – I List – II
a. AITUC i. Indian National Congress
b. BMS ii. Socialists
c. INTUC iii. Rashtriya Swayamsevak Sangh
d. CITU iv. Communist Party of India
Identify the correct combination :
Codes : a b c d
(A) iv iii ii i
(B) iv i ii iii
(C) iv iii i ii
(D) iv i iii ii
Answer: C
40. The main characteristics of Weber’s bureaucracy are :
(A) Specialization
(B) Hierarchy of authority
(C) System of rules
(D) All of the above
Answer: D
41. Match the items of List – I with List – II :
List – I List – II
a. RBI Nationalization i. 1964
b. Imperial Bank Nationalization ii. 1949
c. Nationalization of 14 Commercial Banks iii. 1955
d. Establishment of IDBI iv. 1969 Identify the correct combination :
Codes : a b c d
(A) i ii iii iv
(B) ii iii i iv
(C) iii ii iv i
(D) ii iii iv i
Answer: D
42. As per the RBI Act, 1934, the following functions are described as the functions of a Central Bank :
(i) Banking functions
(ii) Advisory functions
(iii) Supervisory functions
(iv) Promotional functions Identify the correct combination :
(A) (i), (iii) and (iv)
(B) (i), (ii) and (iv)
(C) (ii), (iii) and (iv)
(D) Only (i) and (iii)
Answer: A
43. Phishing is an attempt to acquire :
(A) Loan from unauthorized firms
(B) Sensitive information such as username, password, etc.
(C) Personal information from banks
(D) None of the above
Answer: B
44. What is Call Money ?
(A) Money borrowed or lent for a day or overnight.
(B) Money borrowed for more than one day but upto 3 days.
(C) Money borrowed for more than one day but upto 7 days.
(D) Money borrowed for more than one day but upto 14 days.
Answer: A
45. The Regulatory Authority of Regional Rural Banks is
(A) NABARD
(B) Central Government
(C) State Government
(D) Sponsor Bank
Answer: A
46. Which of the following is not ensured to the consumer in the globalization ?
(A) Lower prices
(B) Better selection
(C) Clear origin of goods and services
(D) Improved services
Answer: C
47. In international trade which of the following is a non-tariff trade barrier ?
(A) Quotas
(B) Import bans
(C) Export controls
(D) Anti dumping laws
Answer: B
48. Match the items of List – I with items in List – II and select a correct code :
List – I List – II
a. Current Account i. Official Capital
b. Capital Account ii. Reserves from foreign countries
c. Unilateral Payments iii. Reparations
d. Official Statement Account iv. Visible Exports and Imports
Codes : a b c d
(A) i iii ii iv
(B) iv i ii iii
(C) iv i iii ii
(D) iii ii i iv
Answer: C
49. Match the items of List – I with the items in List – II and select a correct code : List – I List – II
a. Vishesh Krishi Upaj Yojana i. Scheme intended to reduce difficulties of exporters
b. EPCG ii. Duty Entitlement Pass Book
c. DFRC iii. To boost exports of fruits, vegetables, flowers, minor forest produce etc.
d. DEPB iv. Relating to import of duty free fuel
Codes : a b c d
(A) iv i ii iii
(B) iv iii i ii
(C) iii iv ii i
(D) iii i iv ii
Answer: D
50. Which of the following is not the agency of World Bank ?
(A) MIGA
(B) ICSID
(C) ADB
(D) IDA
Answer: C
51. Statement (I): Job evaluation is a technique of assessing the worth of each job in comparison with others throughout an organization.
Statement (II): Job evaluation and job rating are one and the same for employees’ appraisal purposes.
Codes:
(A) Statement (I) is correct, but Statement (II) is incorrect.
(B) Statement (II) is correct, but Statement (I) is incorrect.
(C) Both the Statements (I) and (II) are correct.
(D) Both the Statements (I) and (II) are incorrect.
Ans: A
52. Match the items of List – I with the items of List – II and select the correct answer:
List – I List – II
(i) Job Rotation (a) Involves conscious efforts, to organise tasks, duties and responsibilities into a unit of work to achieve certain objectives.
(ii) Job Design (b) Involves movement of employees from job to job
(iii) Job Evaluation (c) Seeks to improve both task efficiency and human satisfaction and more opportunity for individual growth
(iv) Job Enrichment (d) The formal process by which the relative worth of various jobs in the organisation is determined for pay purpose.
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (d) (c) (b) (a)
(C) (c) (d) (b) (a)
(D) (b) (a) (d) (c)
Ans: D
53. Assertion (A): Merit rating of an employee is the process of evaluating the employees performance on the job in terms of the requirements of the job.
Reason (R): Employees’ merit rating is a technique for fair and systematic evaluation of an employee’s capacities and abilities and performance on the specific job.
Codes:
(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: B
54. The major provisions for employees’ health and safety are contained in
(A) The Industrial Disputes Act, 1947
(B) The Factories Act, 1948
(C) The Industrial Employment (Standing Orders) Act, 1946
(D) The Employees’ Compensation Act, 1923
Ans: B
55. Indicate your choice through the codes given below:
1. A club is an industry under the Industrial Disputes Act, 1947
2. Factory as defined under the Factories Act, 1948 includes a mine.
3. For purpose of the payment of bonus to employees, the gross profits earned by a bank is to be calculated in the manner specified in Schedule – I of the Payment of the Bonus Act, 1965.
4. Various labour laws do not apply to public sector undertakings.
Codes:
(A) While 1 and 2 are correct, others are not.
(B) All the statements are correct.
(C) Only 1 is correct, others are incorrect.
(D) Only 1 is incorrect, all others are correct.
Ans: A
56. Match the items of List – I with the items of List – II and select the correct answer:
List – I List – II
(i) Abraham Maslow (a) Achievement Motivation Theory
(ii) Herzberg (b) ERG Theory
(iii) Alderfer (c) Two Factor Theory
(iv) McClelland (d) Need Hierarchy Theory
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (d) (c) (b) (a)
(C) (c) (b) (a) (d)
(D) (d) (c) (a) (b)
Ans: B
57. Assertion (A): The Central Bank of the country is responsible to maintain stability of the monetary standard which involves currency circulation
Reason (R): The Central Bank is the only authorized entity to do so.
Codes:
(A) (A) and (R) both are correct.
(B) (A) and (R) both are incorrect.
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: C
58. Identify the quantitative credit control methods among the following:
(i) Bank Rate
(ii) Credit Rationing
(iii) Open Market Operations
(iv) Variable Reserve Ratio
(v) Selective Credit Control
(vi) Liquidity Ratio
Codes:
(A) (i), (ii), (iii) and (iv)
(B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (v) and (vi)
(D) (i), (iii), (iv) and (vi)
Ans: D
59. The following activities are mainly related to which organization?
(i) Micro Finance
(ii) Rural Finance
(iii) Self Help Groups
(iv) Cooperative Banks Finance
(A) Industrial Finance Corporation of India
(B) Ministry of Finance
(C) Reserve Bank of India
(D) National Bank for Agriculture and Rural Development
Ans: D
60. PIN in banking transaction is known as
(A) Postal Index Number
(B) Permanent Identification Number
(C) Personal Identification Number
(D) Public Interlocking Numeric
Ans: C
61. Reserve Bank of India was nationalized on
(A) January 26, 1948
(B) January 01, 1949
(C) January 26, 1950
(D) January 01, 1956
Ans: B
62. When a banking company is placed under moratorium under Section 45 of the Banking (Regulation) Act, 1949, the RBI must prepare a scheme of
(A) VRS for staff
(B) Capital Buy-Back
(C) Reconstruction of the company or amalgamation with any other bank
(D) IPO of the bank
Ans: C
63. Match the following items of List – I with List – II:
List – I List – II
(i) SWIFT (a) 1996
(ii) NEFT (b) 1988
(iii) BASEL I Accord (c) 1973
(iv) BASEL II Accord (d) 2004
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (b) (c) (a) (d)
(C) (d) (c) (b) (a)
(D) (c) (a) (d) (b)
Ans: B
64. The main features of TRIMS are:
(i) All restrictions on foreign capital are imposed.
(ii) No restriction is imposed on any area of investment.
(iii) Restrictions on repatriation of dividend is eliminated.
(iv) Imports of raw material is allowed freely.
(v) No limit on the extent of foreign investment.
Indicate the correct combination
(A) (i), (ii), (iii) and (v)
(B) (ii), (iii), (iv) and (v)
(C) (iii), (iv) and (v)
(D) (iv) and (v)
Ans: B
65. Assertion (A): TRIPS requires an understanding about the scope of the new patent regime.
Reason (R): Patent protection will be extended to micro organisms, non-biological and micro-biological processes and plant varieties.
Codes:
(A) (A) and (R) are not related with each other.
(B) (R) is related with (A).
(C) (A) is independent of (R).
(D) While (R) is related with TRIMS, (A) is related with TRIPS.
Ans: A
66. Possible impact of WTO on various aspects of the Indian economy:
(i) Quantitative restriction will be allowed.
(ii) Second hand cars will be imported.
(iii) There will be dumping of Chinese goods.
(iv) Increase in population.
(v) Child labour exploitation
(vi) Unemployment will increase
Which combination is appropriate?
(A) (i), (ii), (iii)
(B) (iii), (iv), (v)
(C) (ii), (iii) & (vi)
(D) (iv), (v) & (vi)
Ans: C
67. Assertion (A): Economic integration abolishes cross-national economic discrimination.
Reason (R): Geographical proximity is an important reason for economic integration.
Codes:
(A) (R) does explain (A).
(B) Both (A) and (R) are correct.
(C) Both (A) and (R) are not correct.
(D) (A) is correct, but (R) is not correct.
Ans: B
68. Match the items of List – I and items of List – II and select the correct answer:
List – I List – II
(i) Free Trade Area (a) MERCOSUR
(ii) Customs Union (b) European Union
(iii) OEEC (c) EFTA
(iv) Common Market (d) Marshall Plan
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (b) (d) (a) (c)
(C) (c) (a) (d) (b)
(D) (d) (c) (b) (a)
Ans: C
69. Assertion (A): A futures contract specifies in advance the exchange rate to be used, but it is not as flexible as a forward contract.
Reason (R): A futures contract is for specific currency amount and a specific maturity date.
Codes:
(A) (R) is a correct explanation of (A).
(B) (R) is not a correct explanation of (A).
(C) (A) and (R) are not related with each other.
(D) (R) is irrelevant for (A).
Ans: A
70. Out of the following, which are the important objectives of IMF?
(i) To promote exchange rate stability
(ii) To create standby reserves
(iii) To print International currency notes
(iv) To establish a multilateral system of payments.
(v) To maintain orderly exchange rate stability
(vi) To create employment
Codes:
(A) (ii), (iv), (v), (vi)
(B) (iii), (v), (vi)
(C) (i), (ii), (iv), (v)
(D) (i), (ii), (v), (vi)
Ans: C
71. Given that: Fair rent of a let out house property is Rs. 75,000. Its Municipal value is
Rs. 60,000, standard rent is Rs. 72,000 and actual rent received is Rs. 63,000. What is the Gross Annual Value of this house property?
(A) Rs. 60,000
(B) Rs. 63,000
(C) Rs. 72,000
(D) Rs. 75,000
Ans: C
72. Match the items of List – I with the items of List – II
List – I List – II
(i) Amount deposited in PPF (a) 80-IA
(ii) Profits and gains from undertakings engaged in infrastructure development (b) 80 G
(iii) Contribution to National Defence Fund (c) 80-IAB
(iv) Profits and gains by an undertaking engaged in the development of Special Economic Zone (d) 80-C
Codes:
(i) (ii) (iii) (iv)
(A) (d) (c) (b) (a)
(B) (d) (a) (b) (c)
(C) (d) (a) (c) (b)
(D) (b) (a) (c) (d)
Ans: B
73. Which of the following deductions will not come under Sec. 80 of the Income Tax Act?
(A) Deduction in the case of a person with disability
(B) Deduction for interest paid on loan taken for pursuing higher education
(C) Deduction for interest on loan taken for the construction / purchase of house property
(D) Deduction for repayment of any instalment of principal amount borrowed for the purchase / construction of house property
Ans: C
74. X purchased a land in the P.Y. 1997- 98 for Rs. 50,000. This land was sold by him during the P.Y. 2009-10 for Rs. 8,00,000. The fair market value of this land on 1-4-81 was Rs. 1,20,000. If the Cost Inflation Index for the A.Y. 2010-11 is 632, his capital gain for the A.Y. 2010-11 will be
(A) Rs. 4,84,000
(B) Rs. 7,50,000
(C) Rs. 6,80,000
(D) Rs. 41,600
Ans: D
75. Any amount of money received in excess of Rs. 50,000 without consideration is fully taxable in the hands of
(A) Individuals
(B) Individuals and HUF
(C) Individuals, HUF and Company
(D) All assesses
Ans: B
76. Direct supervision over depositories and mutual funds is undertaken by
(A) NBFCs
(B) RBI
(C) SEBI
(D) All of the above
Ans: C
77. In the call/notice money market, which of the following participants is allowed to trade?
(A) All Banks, Primary Dealers and Mutual Funds
(B) All Corporates
(C) Only Commercial Banks
(D) All of the above
Ans: C
78. Match the items of List-I with the items of List-II and select the correct answer:
List – I List – II
(i) Private ownership and Free Enterprise. (a) Secondary Market
(ii) Government ownership and Central Authority. (b) Capitalism
(iii) The market for the sale and purchase of previously issued securities. (c) Primary Market
(iv) The market for new long term capital. (d) Socialism
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (a) (b) (c) (d)
(C) (b) (d) (c) (a)
(D) (a) (c) (b) (d)
Ans: A
79. The apex consumer court in India is referred to as
(A) The Consumer Education and Research Centre.
(B) The Consumer Unity and Trust Society.
(C) National Consumer Disputes Redressal Commission.
(D) None of the above
Ans: C
80. Who is Chairman of 13th Finance Commission?
(A) Dr. C. Rangarajan
(B) Mr. Vimal Jalan
(C) Dr. Vijay C. Kelkar
(D) None of the above
Ans: C
81. Insurance expenses paid to bring an equipment from the place of purchase to the place of installation isa type of
(A) Revenue expenditure
(B) Capital expenditure
(C) Deferred revenue expenditure
(D) Operating expense
Ans: B
82. ABC Ltd was incorporated with an authorised Share Capital of Rs. 1, 00,000 equity shares of Rs. 10 each. The Board of Directors of the company decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd.?
(A) Promoters’ Account
(B) Services Account
(C) Goodwill Account
(D) Share Capital Account
Ans: C
83. In a reconstruction scheme, the reduction of capital may take the form of
(A) Reducing the liability of the shareholders in respect of any unpaid amount on the shares held by them.
(B) Paying-off any paid-up share capital which is in excess of its requirement.
(C) Cancelling any paid-up share capital which is lost or unrepresented by available assets.
(D) All of the above.
Ans: D
84. While determining the normal rate of return for the valuation of shares in Market Value Method, which of the following should be taken into consideration?
(A) The degree of risk involved.
(B) The current rate of interest on gilt-edged securities.
(C) Weighted average cost of capital.
(D) All of the above.
Ans: D
85. Master budget is a
(A) Functional Budget
(B) Operating Budget
(C) Summary Budget
(D) Financial Budget
Ans: C
86. Assertion (A): Want-satisfying power of a commodity is called its utility.
Reason (R): Utility may not have the characteristic of morality.
Codes:
(A) Both (A) and (R) are correct.
(B) (A) is correct, but (R) is not correct.
(C) Both (A) and (R) are not correct.
(D) (R) is correct, but (A) is not correct.
Ans: A
87. Match the items of List-I with those in List-II and select the correct code for the answer:
List – I List – II
(a) Contraction of Demand (i) Non-Price change effect
(b) Decrease in Demand (ii) Demand curve remains the same
(c) Increase in Demand (iii) Price change effect
(d) Expansion of Demand (iv) Shifts the Demand curve
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (iv) (iii) (ii) (i)
(C) (i) (ii) (iii) (iv)
(D) (ii) (iv) (i) (iii)
Ans: A
88. Assertion (A): As the proportion of one variable factor in a combination with fixed factor is increased, after a point the marginal product of the factor will diminish.
Reason (R): Beyond the level of optimum combination of inputs leads to this.
Codes:
(A) (R) is appropriate reason of (A).
(B) (R) is not appropriate reason of (A).
(C) (A) and (R) are not related with each other.
(D) (A) is independent of (R).
Ans: A
89. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(a) Indifference Curve (i) Slopes downward to the right
(b) Demand Curve (ii) P=AR=MR=d
(c) Perfect Competition (iii) Oligopoly
(d) Price Leadership (iv) Convex to the origin
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iii) (iv) (i) (ii)
(C) (iv) (i) (ii) (iii)
(D) (i) (ii) (iii) (iv)
Ans: C
90. Price, Marginal Revenue and Elasticity are related to each other. When e = 1, then:
(A) MR > 0
(B) MR < 0
(C) MR = 0
(D) MR = 1
Ans: C
91. Consider the following statistical tests:
(i) ‘F’ test
(ii) ‘t’ test
(iii) ‘z’ test
(iv) ‘Chi-square’ test
Which of these are parametric tests?
(A) (i), (ii) and (iv)
(B) (i), (iii) and (iv)
(C) (i), (ii) and (iii)
(D) (ii), (iii) and (iv)
Ans: C
92. The difference between sample statistic and its corresponding population parameter is
(A) Sampling error
(B) Measurement error
(C) Coverage error
(D) Non-response error
Ans: A
93. Match the items in List-I with items in List-II.
List – I List – II
(i) Level of significance (a) Sample mean is equal to population mean
(ii) Standard deviation of sampling distribution (b) Parameters
(iii) Numerical value that describes the characteristic cs of the population (c) Type-I error
(iv) Normally distributed population (d) Standard error
Codes:
(i) (ii) (iii) (iv)
(A) (d) (c) (a) (b)
(B) (c) (d) (b) (a)
(C) (c) (b) (d) (a)
(D) (d) (b) (c) (a)
Ans: B
94. Kendall’s co-efficient of concordance is used to
(A) Test the difference among two or more sets of data.
(B) Test the relationship between variables.
(C) Test the variations in the given data.
(D) Test the randomness of samples.
Ans: B
95. Which of the following softwares are used for data processing?
(i) EXCEL
(ii) ACCESS
(iii) SPSS
(iv) STAR
(v) PASW
Codes:
(A) (i), (ii), (iii) and (v)
(B) (ii), (iii), (iv) and (v)
(C) (iii) and (iv)
(D) (i), (iii) and (iv)
Ans: A
96. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(i) Grapevine (a) Taskgroup
(ii) Formal group (b) Field force theory
(iii) Informal group (c) Gossip
(iv) Kurt Lewin (d) National group
Codes:
(i) (ii) (iii) (iv)
(A) (c) (a) (d) (b)
(B) (d) (c) (b) (a)
(C) (a) (b) (c) (d)
(D) (b) (a) (d) (c)
Ans: A
97. Assertion (A): When span of control is wide co-ordination and control becomes difficult.
Reason (R): In a narrow span, levels of authority reduce.
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not a correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: C
98. The general pattern of behaviour, shared belief and values that members have in common is known as
(A) Organisation climate
(B) Organisation culture
(C) Organisation effectiveness
(D) Organisation matrix
Ans: B
99. Which of the following is not a principle of management according to Henri Fayol?
(A) Subordination of individual interest over the organisational interest
(B) Esprit de corps.
(C) Unity of Managers
(D) Unity of Direction
Ans: C
100. Match the items of List-I with those of List-II and select the correct answer from the codes given below:
List – I List – II
(a) Everitt M. Rogers (i) Service Quality Model
(b) J.D. Power (ii) Three types of marketing for services
(c) Parasuraman, Zeithaml and Berry (iii) Quality rating of automobiles
(d) Gronroos (iv) Diffusion of innovation
Codes:
(a) (b) (c) (d)
(A) (iii) (ii) (i) (iv)
(B) (i) (ii) (iii) (iv)
(C) (ii) (i) (iv) (iii)
(D) (iv) (iii) (i) (ii)
Ans: D
Statement (II): Job evaluation and job rating are one and the same for employees’ appraisal purposes.
Codes:
(A) Statement (I) is correct, but Statement (II) is incorrect.
(B) Statement (II) is correct, but Statement (I) is incorrect.
(C) Both the Statements (I) and (II) are correct.
(D) Both the Statements (I) and (II) are incorrect.
Ans: A
52. Match the items of List – I with the items of List – II and select the correct answer:
List – I List – II
(i) Job Rotation (a) Involves conscious efforts, to organise tasks, duties and responsibilities into a unit of work to achieve certain objectives.
(ii) Job Design (b) Involves movement of employees from job to job
(iii) Job Evaluation (c) Seeks to improve both task efficiency and human satisfaction and more opportunity for individual growth
(iv) Job Enrichment (d) The formal process by which the relative worth of various jobs in the organisation is determined for pay purpose.
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (d) (c) (b) (a)
(C) (c) (d) (b) (a)
(D) (b) (a) (d) (c)
Ans: D
53. Assertion (A): Merit rating of an employee is the process of evaluating the employees performance on the job in terms of the requirements of the job.
Reason (R): Employees’ merit rating is a technique for fair and systematic evaluation of an employee’s capacities and abilities and performance on the specific job.
Codes:
(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: B
54. The major provisions for employees’ health and safety are contained in
(A) The Industrial Disputes Act, 1947
(B) The Factories Act, 1948
(C) The Industrial Employment (Standing Orders) Act, 1946
(D) The Employees’ Compensation Act, 1923
Ans: B
55. Indicate your choice through the codes given below:
1. A club is an industry under the Industrial Disputes Act, 1947
2. Factory as defined under the Factories Act, 1948 includes a mine.
3. For purpose of the payment of bonus to employees, the gross profits earned by a bank is to be calculated in the manner specified in Schedule – I of the Payment of the Bonus Act, 1965.
4. Various labour laws do not apply to public sector undertakings.
Codes:
(A) While 1 and 2 are correct, others are not.
(B) All the statements are correct.
(C) Only 1 is correct, others are incorrect.
(D) Only 1 is incorrect, all others are correct.
Ans: A
56. Match the items of List – I with the items of List – II and select the correct answer:
List – I List – II
(i) Abraham Maslow (a) Achievement Motivation Theory
(ii) Herzberg (b) ERG Theory
(iii) Alderfer (c) Two Factor Theory
(iv) McClelland (d) Need Hierarchy Theory
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (d) (c) (b) (a)
(C) (c) (b) (a) (d)
(D) (d) (c) (a) (b)
Ans: B
57. Assertion (A): The Central Bank of the country is responsible to maintain stability of the monetary standard which involves currency circulation
Reason (R): The Central Bank is the only authorized entity to do so.
Codes:
(A) (A) and (R) both are correct.
(B) (A) and (R) both are incorrect.
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: C
58. Identify the quantitative credit control methods among the following:
(i) Bank Rate
(ii) Credit Rationing
(iii) Open Market Operations
(iv) Variable Reserve Ratio
(v) Selective Credit Control
(vi) Liquidity Ratio
Codes:
(A) (i), (ii), (iii) and (iv)
(B) (ii), (iii), (iv) and (v)
(C) (i), (ii), (v) and (vi)
(D) (i), (iii), (iv) and (vi)
Ans: D
59. The following activities are mainly related to which organization?
(i) Micro Finance
(ii) Rural Finance
(iii) Self Help Groups
(iv) Cooperative Banks Finance
(A) Industrial Finance Corporation of India
(B) Ministry of Finance
(C) Reserve Bank of India
(D) National Bank for Agriculture and Rural Development
Ans: D
60. PIN in banking transaction is known as
(A) Postal Index Number
(B) Permanent Identification Number
(C) Personal Identification Number
(D) Public Interlocking Numeric
Ans: C
61. Reserve Bank of India was nationalized on
(A) January 26, 1948
(B) January 01, 1949
(C) January 26, 1950
(D) January 01, 1956
Ans: B
62. When a banking company is placed under moratorium under Section 45 of the Banking (Regulation) Act, 1949, the RBI must prepare a scheme of
(A) VRS for staff
(B) Capital Buy-Back
(C) Reconstruction of the company or amalgamation with any other bank
(D) IPO of the bank
Ans: C
63. Match the following items of List – I with List – II:
List – I List – II
(i) SWIFT (a) 1996
(ii) NEFT (b) 1988
(iii) BASEL I Accord (c) 1973
(iv) BASEL II Accord (d) 2004
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (b) (c) (a) (d)
(C) (d) (c) (b) (a)
(D) (c) (a) (d) (b)
Ans: B
64. The main features of TRIMS are:
(i) All restrictions on foreign capital are imposed.
(ii) No restriction is imposed on any area of investment.
(iii) Restrictions on repatriation of dividend is eliminated.
(iv) Imports of raw material is allowed freely.
(v) No limit on the extent of foreign investment.
Indicate the correct combination
(A) (i), (ii), (iii) and (v)
(B) (ii), (iii), (iv) and (v)
(C) (iii), (iv) and (v)
(D) (iv) and (v)
Ans: B
65. Assertion (A): TRIPS requires an understanding about the scope of the new patent regime.
Reason (R): Patent protection will be extended to micro organisms, non-biological and micro-biological processes and plant varieties.
Codes:
(A) (A) and (R) are not related with each other.
(B) (R) is related with (A).
(C) (A) is independent of (R).
(D) While (R) is related with TRIMS, (A) is related with TRIPS.
Ans: A
66. Possible impact of WTO on various aspects of the Indian economy:
(i) Quantitative restriction will be allowed.
(ii) Second hand cars will be imported.
(iii) There will be dumping of Chinese goods.
(iv) Increase in population.
(v) Child labour exploitation
(vi) Unemployment will increase
Which combination is appropriate?
(A) (i), (ii), (iii)
(B) (iii), (iv), (v)
(C) (ii), (iii) & (vi)
(D) (iv), (v) & (vi)
Ans: C
67. Assertion (A): Economic integration abolishes cross-national economic discrimination.
Reason (R): Geographical proximity is an important reason for economic integration.
Codes:
(A) (R) does explain (A).
(B) Both (A) and (R) are correct.
(C) Both (A) and (R) are not correct.
(D) (A) is correct, but (R) is not correct.
Ans: B
68. Match the items of List – I and items of List – II and select the correct answer:
List – I List – II
(i) Free Trade Area (a) MERCOSUR
(ii) Customs Union (b) European Union
(iii) OEEC (c) EFTA
(iv) Common Market (d) Marshall Plan
Codes:
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (b) (d) (a) (c)
(C) (c) (a) (d) (b)
(D) (d) (c) (b) (a)
Ans: C
69. Assertion (A): A futures contract specifies in advance the exchange rate to be used, but it is not as flexible as a forward contract.
Reason (R): A futures contract is for specific currency amount and a specific maturity date.
Codes:
(A) (R) is a correct explanation of (A).
(B) (R) is not a correct explanation of (A).
(C) (A) and (R) are not related with each other.
(D) (R) is irrelevant for (A).
Ans: A
70. Out of the following, which are the important objectives of IMF?
(i) To promote exchange rate stability
(ii) To create standby reserves
(iii) To print International currency notes
(iv) To establish a multilateral system of payments.
(v) To maintain orderly exchange rate stability
(vi) To create employment
Codes:
(A) (ii), (iv), (v), (vi)
(B) (iii), (v), (vi)
(C) (i), (ii), (iv), (v)
(D) (i), (ii), (v), (vi)
Ans: C
71. Given that: Fair rent of a let out house property is Rs. 75,000. Its Municipal value is
Rs. 60,000, standard rent is Rs. 72,000 and actual rent received is Rs. 63,000. What is the Gross Annual Value of this house property?
(A) Rs. 60,000
(B) Rs. 63,000
(C) Rs. 72,000
(D) Rs. 75,000
Ans: C
72. Match the items of List – I with the items of List – II
List – I List – II
(i) Amount deposited in PPF (a) 80-IA
(ii) Profits and gains from undertakings engaged in infrastructure development (b) 80 G
(iii) Contribution to National Defence Fund (c) 80-IAB
(iv) Profits and gains by an undertaking engaged in the development of Special Economic Zone (d) 80-C
Codes:
(i) (ii) (iii) (iv)
(A) (d) (c) (b) (a)
(B) (d) (a) (b) (c)
(C) (d) (a) (c) (b)
(D) (b) (a) (c) (d)
Ans: B
73. Which of the following deductions will not come under Sec. 80 of the Income Tax Act?
(A) Deduction in the case of a person with disability
(B) Deduction for interest paid on loan taken for pursuing higher education
(C) Deduction for interest on loan taken for the construction / purchase of house property
(D) Deduction for repayment of any instalment of principal amount borrowed for the purchase / construction of house property
Ans: C
74. X purchased a land in the P.Y. 1997- 98 for Rs. 50,000. This land was sold by him during the P.Y. 2009-10 for Rs. 8,00,000. The fair market value of this land on 1-4-81 was Rs. 1,20,000. If the Cost Inflation Index for the A.Y. 2010-11 is 632, his capital gain for the A.Y. 2010-11 will be
(A) Rs. 4,84,000
(B) Rs. 7,50,000
(C) Rs. 6,80,000
(D) Rs. 41,600
Ans: D
75. Any amount of money received in excess of Rs. 50,000 without consideration is fully taxable in the hands of
(A) Individuals
(B) Individuals and HUF
(C) Individuals, HUF and Company
(D) All assesses
Ans: B
76. Direct supervision over depositories and mutual funds is undertaken by
(A) NBFCs
(B) RBI
(C) SEBI
(D) All of the above
Ans: C
77. In the call/notice money market, which of the following participants is allowed to trade?
(A) All Banks, Primary Dealers and Mutual Funds
(B) All Corporates
(C) Only Commercial Banks
(D) All of the above
Ans: C
78. Match the items of List-I with the items of List-II and select the correct answer:
List – I List – II
(i) Private ownership and Free Enterprise. (a) Secondary Market
(ii) Government ownership and Central Authority. (b) Capitalism
(iii) The market for the sale and purchase of previously issued securities. (c) Primary Market
(iv) The market for new long term capital. (d) Socialism
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (a) (b) (c) (d)
(C) (b) (d) (c) (a)
(D) (a) (c) (b) (d)
Ans: A
79. The apex consumer court in India is referred to as
(A) The Consumer Education and Research Centre.
(B) The Consumer Unity and Trust Society.
(C) National Consumer Disputes Redressal Commission.
(D) None of the above
Ans: C
80. Who is Chairman of 13th Finance Commission?
(A) Dr. C. Rangarajan
(B) Mr. Vimal Jalan
(C) Dr. Vijay C. Kelkar
(D) None of the above
Ans: C
81. Insurance expenses paid to bring an equipment from the place of purchase to the place of installation isa type of
(A) Revenue expenditure
(B) Capital expenditure
(C) Deferred revenue expenditure
(D) Operating expense
Ans: B
82. ABC Ltd was incorporated with an authorised Share Capital of Rs. 1, 00,000 equity shares of Rs. 10 each. The Board of Directors of the company decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd.?
(A) Promoters’ Account
(B) Services Account
(C) Goodwill Account
(D) Share Capital Account
Ans: C
83. In a reconstruction scheme, the reduction of capital may take the form of
(A) Reducing the liability of the shareholders in respect of any unpaid amount on the shares held by them.
(B) Paying-off any paid-up share capital which is in excess of its requirement.
(C) Cancelling any paid-up share capital which is lost or unrepresented by available assets.
(D) All of the above.
Ans: D
84. While determining the normal rate of return for the valuation of shares in Market Value Method, which of the following should be taken into consideration?
(A) The degree of risk involved.
(B) The current rate of interest on gilt-edged securities.
(C) Weighted average cost of capital.
(D) All of the above.
Ans: D
85. Master budget is a
(A) Functional Budget
(B) Operating Budget
(C) Summary Budget
(D) Financial Budget
Ans: C
86. Assertion (A): Want-satisfying power of a commodity is called its utility.
Reason (R): Utility may not have the characteristic of morality.
Codes:
(A) Both (A) and (R) are correct.
(B) (A) is correct, but (R) is not correct.
(C) Both (A) and (R) are not correct.
(D) (R) is correct, but (A) is not correct.
Ans: A
87. Match the items of List-I with those in List-II and select the correct code for the answer:
List – I List – II
(a) Contraction of Demand (i) Non-Price change effect
(b) Decrease in Demand (ii) Demand curve remains the same
(c) Increase in Demand (iii) Price change effect
(d) Expansion of Demand (iv) Shifts the Demand curve
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (iv) (iii) (ii) (i)
(C) (i) (ii) (iii) (iv)
(D) (ii) (iv) (i) (iii)
Ans: A
88. Assertion (A): As the proportion of one variable factor in a combination with fixed factor is increased, after a point the marginal product of the factor will diminish.
Reason (R): Beyond the level of optimum combination of inputs leads to this.
Codes:
(A) (R) is appropriate reason of (A).
(B) (R) is not appropriate reason of (A).
(C) (A) and (R) are not related with each other.
(D) (A) is independent of (R).
Ans: A
89. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(a) Indifference Curve (i) Slopes downward to the right
(b) Demand Curve (ii) P=AR=MR=d
(c) Perfect Competition (iii) Oligopoly
(d) Price Leadership (iv) Convex to the origin
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iii) (iv) (i) (ii)
(C) (iv) (i) (ii) (iii)
(D) (i) (ii) (iii) (iv)
Ans: C
90. Price, Marginal Revenue and Elasticity are related to each other. When e = 1, then:
(A) MR > 0
(B) MR < 0
(C) MR = 0
(D) MR = 1
Ans: C
91. Consider the following statistical tests:
(i) ‘F’ test
(ii) ‘t’ test
(iii) ‘z’ test
(iv) ‘Chi-square’ test
Which of these are parametric tests?
(A) (i), (ii) and (iv)
(B) (i), (iii) and (iv)
(C) (i), (ii) and (iii)
(D) (ii), (iii) and (iv)
Ans: C
92. The difference between sample statistic and its corresponding population parameter is
(A) Sampling error
(B) Measurement error
(C) Coverage error
(D) Non-response error
Ans: A
93. Match the items in List-I with items in List-II.
List – I List – II
(i) Level of significance (a) Sample mean is equal to population mean
(ii) Standard deviation of sampling distribution (b) Parameters
(iii) Numerical value that describes the characteristic cs of the population (c) Type-I error
(iv) Normally distributed population (d) Standard error
Codes:
(i) (ii) (iii) (iv)
(A) (d) (c) (a) (b)
(B) (c) (d) (b) (a)
(C) (c) (b) (d) (a)
(D) (d) (b) (c) (a)
Ans: B
94. Kendall’s co-efficient of concordance is used to
(A) Test the difference among two or more sets of data.
(B) Test the relationship between variables.
(C) Test the variations in the given data.
(D) Test the randomness of samples.
Ans: B
95. Which of the following softwares are used for data processing?
(i) EXCEL
(ii) ACCESS
(iii) SPSS
(iv) STAR
(v) PASW
Codes:
(A) (i), (ii), (iii) and (v)
(B) (ii), (iii), (iv) and (v)
(C) (iii) and (iv)
(D) (i), (iii) and (iv)
Ans: A
96. Match the items of List-I with the items of List-II and select the correct answer.
List – I List – II
(i) Grapevine (a) Taskgroup
(ii) Formal group (b) Field force theory
(iii) Informal group (c) Gossip
(iv) Kurt Lewin (d) National group
Codes:
(i) (ii) (iii) (iv)
(A) (c) (a) (d) (b)
(B) (d) (c) (b) (a)
(C) (a) (b) (c) (d)
(D) (b) (a) (d) (c)
Ans: A
97. Assertion (A): When span of control is wide co-ordination and control becomes difficult.
Reason (R): In a narrow span, levels of authority reduce.
Codes:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not a correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: C
98. The general pattern of behaviour, shared belief and values that members have in common is known as
(A) Organisation climate
(B) Organisation culture
(C) Organisation effectiveness
(D) Organisation matrix
Ans: B
99. Which of the following is not a principle of management according to Henri Fayol?
(A) Subordination of individual interest over the organisational interest
(B) Esprit de corps.
(C) Unity of Managers
(D) Unity of Direction
Ans: C
100. Match the items of List-I with those of List-II and select the correct answer from the codes given below:
List – I List – II
(a) Everitt M. Rogers (i) Service Quality Model
(b) J.D. Power (ii) Three types of marketing for services
(c) Parasuraman, Zeithaml and Berry (iii) Quality rating of automobiles
(d) Gronroos (iv) Diffusion of innovation
Codes:
(a) (b) (c) (d)
(A) (iii) (ii) (i) (iv)
(B) (i) (ii) (iii) (iv)
(C) (ii) (i) (iv) (iii)
(D) (iv) (iii) (i) (ii)
Ans: D