COMMERCE
UPSC Commerce and Accountancy MCQs
1. The requirement to hedge against a fall in stock prices by using futures of another stock is
A) A long hedge in the other stock futures
B) A short hedge in the other stock futures
C) Finding a cross hedge ratio using a beta approach
D) Either way the pay-off is the same
Ans: B
2. Allocation of resource to the States is the primary duty of
A) The NITI Ayog
B) The Finance Commission
C) The RBI
D) The Pay Commission
Ans: B
3. PAYE is with respect to
A) Advance payment of income tax
B) Tax planning
C) Tax evasion
D) Tax avoidance
Ans: A
4. The origin of merchant banking was in
A) 12th century
B) 13th century
C) 14th century
D) 15th century
Ans: B
5. Hawthrone studies are related to which stage of organizational behavior evolution ?
A) Industrial revolution
B) Scientific management
C) Functional management
D) None of these
Ans: D
6. The criterion to judge the performance of a mutual fund is
A) NPV
B) NAV
C) Dividend paid
D) Sensex
Ans: B
7. The Dormant company concept was introduced by ___________ of the Companies Act 2013.
A) Section 455
B) Section 450
C) Section 444
D) Section 405
Ans: A
8. Take out financing is a kind of
A) Lease financing B) Bank financing C) Hire purchase financing D) Merchant banking
Ans: B
9. The most appropriate definition of market is
A) The place where products are exchanged
B) The time when products are exchanged
C) Effective contact between the buyer and seller
D) The level of satisfaction of the seller
Ans: C
10. Puffer or a Decoy Duck is one who is employed by
A) The GST council of India to pin down the high net worth pesos
B) The auctioneer to raise the price by making fictitious bids
C) The Trade Tax department to check trade tax evasion
D) The Income Tax department to check tax evasion
Ans: B
11. If stock price is Rs. 30, present value of exercise price is Rs. 25 and the call price is Rs. 6, the respective put should be
A) Re. 1
B) Rs. 1.66
C) Rs. 1.83
D) Data not sufficient
Ans: A
12. The concept of reciprocal demand was introduced by
A) Louis Blank B) Schmoller C) J.B. Say D) J.S. Mill
Ans: D
13. What is the co-efficient of relative elasticity ?
A) e > 1 B) e < 1 C) e = 1 D) e = 0
Ans: A
14. The budget estimates of Sitharam Co. Ltd. for the year 2009- 2010 are as follows : Sales (unit) : 15,000; Fixed expenses : Rs. 34,000; Sales : Rs. 1,50,000 and variable cost : Rs. 6 per unit. What is the revised margin of safety, if the selling price is decreased by 10% ?
A) Rs. 33,000
B) Rs. 33,003
C) Rs. 33,050
D) Rs. 33,060
Ans: A
15. _______ is the study that considers aggregate behaviour and the study of sum of individual economic decisions.
A) Macro economics
B) Micro economics
C) Normative economics
D) Positive economics
Ans: A
16. MRP stands for
A) Management Resource Planning
B) Management Research Planning
C) Material Requirement Planning
D) Material Resource Planning
Ans: C
17. Which of the following TCP/IP protocol is used for remote connection service ?
A) TELNET B) FTP C) RARP D) None of these
Ans: A
18. Which industry is the second largest provider of employment in India after agriculture ?
A) Iron and steel B) Transports C) Chemicals D) Textiles
Ans: D
19. If the mean of a binomial distribution is 4 and variance is 3, the number of items in the distribution is
A) 10 B) 12 C) 16 D) 09
Ans: C
20. X and Y are partners who share the profit and loss in the ratio of 2 : 3. Z is admitted into the partnership. Z brings Rs. 6,000 in cash and his share of goodwill. They have decided to change the profit and loss sharing ratio into 4:5:6 for X, Y and Z respectively. How will the goodwill be distributed at the time of admission of Z ?
A) Credit X’s capital a/c by Rs. 2,000; Credit Y’s capital a/c by Rs. 4,000
B) Credit X’s capital a/c by Rs. 4,000; Credit Y’s capital a/c by Rs. 2,000
C) Credit Y’s capital a/c by Rs. 6,000
D) Credit X’s capital a/c by Rs. 6,000
Ans: A
21. The (1 -p) in the Binomial valuation model is
A) Derived from the p that is computed
B) The risk-free rate of return
C) Always higher than p
D) Both (B) and (C)
Ans: B
22. When the materials are priced at the value that is realizable at the time of issue, such pricing method is called
A) HIFO B) Standard price method
C) Weighted average method D) Replacement method
Ans: D
23. Which among the following is the basic drive that gives the urge to take up a certain type of career ?
A) Career path
B) Career goal
C) Career anchor
D) Career progression
Ans: C
24. If a person fails to furnish a report from an accountant relating to his international transactions, penalty of _______ shall be imposed.
A) Rs. 1,00,000
B) Rs. 2,00,000
C) Rs. 3,00,000
D) Rs. 4,00,000
Ans: A
25. While calculating the income tax, interest on securities held by local authority is
A) Fully taxable B) Partially taxable C) Considered only for rate purposes D) Fully exempt
Ans: D
26. IDBI bank is
A) Development bank in the Government sector
B) Commercial bank in the Government sector
C) Commercial bank in the private sector
D) Development bank in the private sector
Ans: B
27. If two samples of size 9 and 11 have means 6 and 8.8, and variances 36 and 25 respectively, then value of "t" is
A) 0.148 B) 1.83 C) 0.81 D) None of the above
Ans: C
28. The NSS is better means of investment because of
A) Tax deferment B) High rate of interest
C) Liquidity D) None of these
Ans: A
29. Lead time refers to
A) The time the finished goods lie as inventories
B) The period in which a whole lot of inventory is consumed
C) The time gap between placing of the order and procuring the materials
D) The work in progress time
Ans: C
30. A barrier call has a knock-out value of Rs. 85/-. What is the impact if the stock reaches this value ?
A) The call is immediately exercisable
B) There is no call
C) The exercise price is deemed to be Rs. 85/
D) Cannot say
Ans: B
31. Which of the following is correct about co-efficient of correlation ?
A) r = 1 B) r < 1 C) r = 0 D) All of these
Ans: D
32. What is the wage payable to Mr. Raman under the Halsey plan if he completes the work by 15 hours against the standard time of 20 hours ? Assume an hourly rate of Rs. 4/
A) Rs. 66.66
B) Rs. 70.00
C) Rs. 73.50
D) Rs. 80.00
Ans: B
33. Which of the following theories was developed by Edwin Locke ?
A) Carrot and Stick theory B) Equity theory C) Decision theory D) Goal setting theory
Ans: D
34. What is the stock price in real options valuation applying the Black Scholes model ?
A) The pessimistic price of the asset as per today’s estimation
B) The optimistic price of the asset as per today’s estimation
C) The price of the asset as per expected value today
D) None of the above
Ans: C
35. The demand curve of conspicuous goods is
A) Downward sloping B) Upward sloping C) Parallel to the X axis D) Parallel to the Y axis
Ans: B
36. The Indian company gets income tax deduction for contribution to a political party under Section
A) 80 G B) 80 GG C) 80 GGA D) 80 GGB
Ans: D
37. Which five year plan did recognize the integral link between rapid economic growth and the quality of the mass of the people ?
A) 7th plan B) 8th plan C) 9th plan D) 10th plan
Ans: C
38. CBCT stands for
A) Customer Bank Credit Terminal
B) Commercial Banking Credit Terminal
C) Commercial Bank Communication Terminal
D) Customer Bank Communication Terminal
Ans: D
39. The report of cost audit is furnished to the
A) Shareholders B) Management C) Central Government D) State Government
Ans: C
40. The difference between the initial capital outlay and the total present value of stream of cash flow of a given rate of discount is called
A) NPV B) IRR C) ARR D) NWC
Ans: A
41. In a distribution which is exactly normal, 7% of the items are under 35 and 89% are under 6. What is the standard deviation of distribution ?
A) 13.50 B) 10.35 C) 0.135 D) Information not sufficient
Ans: B
42. In perfect competition, the AR and MR curves are
A) Same and parallel to the X axis
B) Same and parallel to the Y axis
C) Different and the AR curve is below to the MR curve
D) Different and the MR curve is below to the AR curve
Ans: A
43. Which theory of wages is called "Iron Law Wages" ?
A) Wages fund theory B) Subsistence theory C) Surplus value theory D) Bargaining theory
Ans: B
44. The interval between two AGMs of a company should not be more than
A) 12 months B) 15 months C) 18 months D) 20 months
Ans: B
45. The relationship between equity capital and long term debt is known as
A) Capital gearing B) Capital budgeting C) Financial leverage D) Trading on equity
Ans: A
46. What would be the market price if the next year’s dividend is 20%, required rate of return is 10% and the growth rate is 15% as per the constant growth model ?
A) Rs. 55 B) Rs. 50 C) Rs. 45 D) Rs. 40
Ans: D
47. Which bonus plan is increased along with the increase in the efficiency ?
A) Accelerated premium plan B) Barth variable bonus plan
C) Gnatt's task bonus plan D) None of these
Ans: A
48. When a monopolist divides the market into two or more groups and charges different prices from each group, it is called price discrimination of ______ order.
A) First B) Second C) Third D) Fourth
Ans: C
49. In which way the estimated losses that can be foreseen for a contract is treated ?
A) Ignore until they are known to be accurate with reasonable certainty
B) Write-off in the same proportion as any estimated profits are recognized
C) Write-off only if the work to which they belong is complete by 50%
D) Write-off immediately when they are estimated
Ans: D
50. In process cost computations, the cost of ending work in progress inventory is calculated on
A) The total costs to account for schedule
B) The quantities schedule
C) The computation of equivalent production
D) None of the above
Ans: C
A) A long hedge in the other stock futures
B) A short hedge in the other stock futures
C) Finding a cross hedge ratio using a beta approach
D) Either way the pay-off is the same
Ans: B
2. Allocation of resource to the States is the primary duty of
A) The NITI Ayog
B) The Finance Commission
C) The RBI
D) The Pay Commission
Ans: B
3. PAYE is with respect to
A) Advance payment of income tax
B) Tax planning
C) Tax evasion
D) Tax avoidance
Ans: A
4. The origin of merchant banking was in
A) 12th century
B) 13th century
C) 14th century
D) 15th century
Ans: B
5. Hawthrone studies are related to which stage of organizational behavior evolution ?
A) Industrial revolution
B) Scientific management
C) Functional management
D) None of these
Ans: D
6. The criterion to judge the performance of a mutual fund is
A) NPV
B) NAV
C) Dividend paid
D) Sensex
Ans: B
7. The Dormant company concept was introduced by ___________ of the Companies Act 2013.
A) Section 455
B) Section 450
C) Section 444
D) Section 405
Ans: A
8. Take out financing is a kind of
A) Lease financing B) Bank financing C) Hire purchase financing D) Merchant banking
Ans: B
9. The most appropriate definition of market is
A) The place where products are exchanged
B) The time when products are exchanged
C) Effective contact between the buyer and seller
D) The level of satisfaction of the seller
Ans: C
10. Puffer or a Decoy Duck is one who is employed by
A) The GST council of India to pin down the high net worth pesos
B) The auctioneer to raise the price by making fictitious bids
C) The Trade Tax department to check trade tax evasion
D) The Income Tax department to check tax evasion
Ans: B
11. If stock price is Rs. 30, present value of exercise price is Rs. 25 and the call price is Rs. 6, the respective put should be
A) Re. 1
B) Rs. 1.66
C) Rs. 1.83
D) Data not sufficient
Ans: A
12. The concept of reciprocal demand was introduced by
A) Louis Blank B) Schmoller C) J.B. Say D) J.S. Mill
Ans: D
13. What is the co-efficient of relative elasticity ?
A) e > 1 B) e < 1 C) e = 1 D) e = 0
Ans: A
14. The budget estimates of Sitharam Co. Ltd. for the year 2009- 2010 are as follows : Sales (unit) : 15,000; Fixed expenses : Rs. 34,000; Sales : Rs. 1,50,000 and variable cost : Rs. 6 per unit. What is the revised margin of safety, if the selling price is decreased by 10% ?
A) Rs. 33,000
B) Rs. 33,003
C) Rs. 33,050
D) Rs. 33,060
Ans: A
15. _______ is the study that considers aggregate behaviour and the study of sum of individual economic decisions.
A) Macro economics
B) Micro economics
C) Normative economics
D) Positive economics
Ans: A
16. MRP stands for
A) Management Resource Planning
B) Management Research Planning
C) Material Requirement Planning
D) Material Resource Planning
Ans: C
17. Which of the following TCP/IP protocol is used for remote connection service ?
A) TELNET B) FTP C) RARP D) None of these
Ans: A
18. Which industry is the second largest provider of employment in India after agriculture ?
A) Iron and steel B) Transports C) Chemicals D) Textiles
Ans: D
19. If the mean of a binomial distribution is 4 and variance is 3, the number of items in the distribution is
A) 10 B) 12 C) 16 D) 09
Ans: C
20. X and Y are partners who share the profit and loss in the ratio of 2 : 3. Z is admitted into the partnership. Z brings Rs. 6,000 in cash and his share of goodwill. They have decided to change the profit and loss sharing ratio into 4:5:6 for X, Y and Z respectively. How will the goodwill be distributed at the time of admission of Z ?
A) Credit X’s capital a/c by Rs. 2,000; Credit Y’s capital a/c by Rs. 4,000
B) Credit X’s capital a/c by Rs. 4,000; Credit Y’s capital a/c by Rs. 2,000
C) Credit Y’s capital a/c by Rs. 6,000
D) Credit X’s capital a/c by Rs. 6,000
Ans: A
21. The (1 -p) in the Binomial valuation model is
A) Derived from the p that is computed
B) The risk-free rate of return
C) Always higher than p
D) Both (B) and (C)
Ans: B
22. When the materials are priced at the value that is realizable at the time of issue, such pricing method is called
A) HIFO B) Standard price method
C) Weighted average method D) Replacement method
Ans: D
23. Which among the following is the basic drive that gives the urge to take up a certain type of career ?
A) Career path
B) Career goal
C) Career anchor
D) Career progression
Ans: C
24. If a person fails to furnish a report from an accountant relating to his international transactions, penalty of _______ shall be imposed.
A) Rs. 1,00,000
B) Rs. 2,00,000
C) Rs. 3,00,000
D) Rs. 4,00,000
Ans: A
25. While calculating the income tax, interest on securities held by local authority is
A) Fully taxable B) Partially taxable C) Considered only for rate purposes D) Fully exempt
Ans: D
26. IDBI bank is
A) Development bank in the Government sector
B) Commercial bank in the Government sector
C) Commercial bank in the private sector
D) Development bank in the private sector
Ans: B
27. If two samples of size 9 and 11 have means 6 and 8.8, and variances 36 and 25 respectively, then value of "t" is
A) 0.148 B) 1.83 C) 0.81 D) None of the above
Ans: C
28. The NSS is better means of investment because of
A) Tax deferment B) High rate of interest
C) Liquidity D) None of these
Ans: A
29. Lead time refers to
A) The time the finished goods lie as inventories
B) The period in which a whole lot of inventory is consumed
C) The time gap between placing of the order and procuring the materials
D) The work in progress time
Ans: C
30. A barrier call has a knock-out value of Rs. 85/-. What is the impact if the stock reaches this value ?
A) The call is immediately exercisable
B) There is no call
C) The exercise price is deemed to be Rs. 85/
D) Cannot say
Ans: B
31. Which of the following is correct about co-efficient of correlation ?
A) r = 1 B) r < 1 C) r = 0 D) All of these
Ans: D
32. What is the wage payable to Mr. Raman under the Halsey plan if he completes the work by 15 hours against the standard time of 20 hours ? Assume an hourly rate of Rs. 4/
A) Rs. 66.66
B) Rs. 70.00
C) Rs. 73.50
D) Rs. 80.00
Ans: B
33. Which of the following theories was developed by Edwin Locke ?
A) Carrot and Stick theory B) Equity theory C) Decision theory D) Goal setting theory
Ans: D
34. What is the stock price in real options valuation applying the Black Scholes model ?
A) The pessimistic price of the asset as per today’s estimation
B) The optimistic price of the asset as per today’s estimation
C) The price of the asset as per expected value today
D) None of the above
Ans: C
35. The demand curve of conspicuous goods is
A) Downward sloping B) Upward sloping C) Parallel to the X axis D) Parallel to the Y axis
Ans: B
36. The Indian company gets income tax deduction for contribution to a political party under Section
A) 80 G B) 80 GG C) 80 GGA D) 80 GGB
Ans: D
37. Which five year plan did recognize the integral link between rapid economic growth and the quality of the mass of the people ?
A) 7th plan B) 8th plan C) 9th plan D) 10th plan
Ans: C
38. CBCT stands for
A) Customer Bank Credit Terminal
B) Commercial Banking Credit Terminal
C) Commercial Bank Communication Terminal
D) Customer Bank Communication Terminal
Ans: D
39. The report of cost audit is furnished to the
A) Shareholders B) Management C) Central Government D) State Government
Ans: C
40. The difference between the initial capital outlay and the total present value of stream of cash flow of a given rate of discount is called
A) NPV B) IRR C) ARR D) NWC
Ans: A
41. In a distribution which is exactly normal, 7% of the items are under 35 and 89% are under 6. What is the standard deviation of distribution ?
A) 13.50 B) 10.35 C) 0.135 D) Information not sufficient
Ans: B
42. In perfect competition, the AR and MR curves are
A) Same and parallel to the X axis
B) Same and parallel to the Y axis
C) Different and the AR curve is below to the MR curve
D) Different and the MR curve is below to the AR curve
Ans: A
43. Which theory of wages is called "Iron Law Wages" ?
A) Wages fund theory B) Subsistence theory C) Surplus value theory D) Bargaining theory
Ans: B
44. The interval between two AGMs of a company should not be more than
A) 12 months B) 15 months C) 18 months D) 20 months
Ans: B
45. The relationship between equity capital and long term debt is known as
A) Capital gearing B) Capital budgeting C) Financial leverage D) Trading on equity
Ans: A
46. What would be the market price if the next year’s dividend is 20%, required rate of return is 10% and the growth rate is 15% as per the constant growth model ?
A) Rs. 55 B) Rs. 50 C) Rs. 45 D) Rs. 40
Ans: D
47. Which bonus plan is increased along with the increase in the efficiency ?
A) Accelerated premium plan B) Barth variable bonus plan
C) Gnatt's task bonus plan D) None of these
Ans: A
48. When a monopolist divides the market into two or more groups and charges different prices from each group, it is called price discrimination of ______ order.
A) First B) Second C) Third D) Fourth
Ans: C
49. In which way the estimated losses that can be foreseen for a contract is treated ?
A) Ignore until they are known to be accurate with reasonable certainty
B) Write-off in the same proportion as any estimated profits are recognized
C) Write-off only if the work to which they belong is complete by 50%
D) Write-off immediately when they are estimated
Ans: D
50. In process cost computations, the cost of ending work in progress inventory is calculated on
A) The total costs to account for schedule
B) The quantities schedule
C) The computation of equivalent production
D) None of the above
Ans: C
51. Company X Ltd. has a β of 1.5. The expected return is 15% and the risk-free rate of interest is 5%. What is the market return ?
A) 6.67% B) 8.33% C) 8.66% D) 12.33%
Ans: A
52. The distinction between joint products and by-products is largely dependent upon
A) The point of split off of each product
B) The market value of the product
C) The differential cost of each product
D) The management's discretion
Ans: B
53. The standard overheads are determined on the basis of
A) Standard output B) Budgeted output C) Actual output D) Production capacity
Ans: C
54. Hike in the bank rate
A) Keeps both cost of credit and demand for money constant
B) Increases the cost of credit and increases the demand for money
C) Decreases the cost of credit and increases the demand for money
D) Increases the cost of credit and decreases the demand for money
Ans: D
55. If the probability of getting head is 0.4, what is the probability of getting two heads of a coin when it is tossed three times ?
A) 0.288 B) 0.024 C) 0.248 D) 0.096
Ans: A
56. The T-Bill futures are bought for a hedge during a period when
A) The interest rates cannot be predicted
B) The interest rates are likely to be stable
C) The interest rates are likely to come down
D) All of the above
Ans: C
57. An ROP would be attached to a
A) Simplex channel B) Duplex channel C) Full duplex channel D) Half duplex channel
Ans: A
58. Purchasing of shares with funds borrowed from broker is
A) Domestic trading B) Margin trading C) Option dealing D) Foreign trading
Ans: B
59. Size of critical region is known as
A) Size of the test B) Size of the type I Error C) Size of the type II Error D) Critical value of the test statistics
Ans: A
60. The Black -Scholes option pricing theory is based on the following assumption
A) There is cyclical change in interest rates
B) The stock pays regular dividends
C) The stock price movement is taken to be random
D) The call option can be exercised any time during its life period
Ans: C
61. Pools and Cartels are forms of
A) Amalgamation B) Partnership C) Federation D) Joint ventures
Ans: C
62. Anonymous donations are taxable under _________ of the income tax.
A) Section 114 BBB B) Section 115 BBB C) Section 114 BBC D) Section 115 BBC
Ans: D
63. Insurable interest should exist at the time of enrolment itself in
A) Life insurance B) Fire insurance C) Marine Insurance D) All of the above
Ans: A
A) 6.67% B) 8.33% C) 8.66% D) 12.33%
Ans: A
52. The distinction between joint products and by-products is largely dependent upon
A) The point of split off of each product
B) The market value of the product
C) The differential cost of each product
D) The management's discretion
Ans: B
53. The standard overheads are determined on the basis of
A) Standard output B) Budgeted output C) Actual output D) Production capacity
Ans: C
54. Hike in the bank rate
A) Keeps both cost of credit and demand for money constant
B) Increases the cost of credit and increases the demand for money
C) Decreases the cost of credit and increases the demand for money
D) Increases the cost of credit and decreases the demand for money
Ans: D
55. If the probability of getting head is 0.4, what is the probability of getting two heads of a coin when it is tossed three times ?
A) 0.288 B) 0.024 C) 0.248 D) 0.096
Ans: A
56. The T-Bill futures are bought for a hedge during a period when
A) The interest rates cannot be predicted
B) The interest rates are likely to be stable
C) The interest rates are likely to come down
D) All of the above
Ans: C
57. An ROP would be attached to a
A) Simplex channel B) Duplex channel C) Full duplex channel D) Half duplex channel
Ans: A
58. Purchasing of shares with funds borrowed from broker is
A) Domestic trading B) Margin trading C) Option dealing D) Foreign trading
Ans: B
59. Size of critical region is known as
A) Size of the test B) Size of the type I Error C) Size of the type II Error D) Critical value of the test statistics
Ans: A
60. The Black -Scholes option pricing theory is based on the following assumption
A) There is cyclical change in interest rates
B) The stock pays regular dividends
C) The stock price movement is taken to be random
D) The call option can be exercised any time during its life period
Ans: C
61. Pools and Cartels are forms of
A) Amalgamation B) Partnership C) Federation D) Joint ventures
Ans: C
62. Anonymous donations are taxable under _________ of the income tax.
A) Section 114 BBB B) Section 115 BBB C) Section 114 BBC D) Section 115 BBC
Ans: D
63. Insurable interest should exist at the time of enrolment itself in
A) Life insurance B) Fire insurance C) Marine Insurance D) All of the above
Ans: A
64. Assertion (A): Indent may be open or closed. Open indent does not specify the price and other details of the goods. The closed indent specifies the brand, price, number, packing, shipping mode, insurance, etc.
Reason (R): This is required as a part of export procedures.
Codes:
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are not correct.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: C
65. Which one of the statements is not true?
(A) Institutional infrastructure facilitates market intelligence.
(B) STC is the chief canalizing agent for export and import of agricultural products.
(C) IIPO organizes trade fairs and exhibitions.
(D) Letter of credit does not indicate that the bank will pay the value of imports to the exporter.
Ans: D
66. Match the items of List – I with items of List – II.
List – I List – II
a. Selective credit control 1. Consumer Credit Regulation
b. Encourage credit for desirable use 2. Cash Reserve Ratio
c. Quantitative credit control 3. Variation in Margin
d. Bank Rate 4. Re-discounting Rate
Codes:
a b c d
(A) 4 2 3 1
(B) 3 1 2 4
(C) 1 3 2 4
(D) 2 1 3 4
Ans: B
67. Assertion (A): Use of paper money is replaced by plastic money. The future will see the electronic money clearance through satellite networking.
Reason (R): RBI is encouraging e-banking.
Codes:
(A) (A) is false, but (R) is true.
(B) (A) is true, but (R) is false.
(C) Both (A) and (R) are false.
(D) Both (A) and (R) are true.
Ans: D
68. Which one is not Finance Company?
(A) Hire-Purchase Finance Company
(B) IRDA
(C) Mutual Benefit Finance Companies
(D) Loan Companies
Ans: B
69. The Securities and Exchange Board of India was not entrusted with the function of
(A) Investor Protection.
(B) Ensuring Fair practices by companies.
(C) Promotion of efficient services by brokers.
(D) Improving the earnings of equity holders.
Ans: D
70. Which one is a not Non-Marketable security?
(A) Corporate Securities
(B) Bank Deposits
(C) Deposits with Companies
(D) Post Office Certificates and Deposits
Ans: A
71. Minimum Alternative Tax (MAT) under Sec.115 JB of the Income Tax Act is applicable on
(A) Partnership firm
(B) Association of persons
(C) Certain companies
(D) All types of companies
Ans: C
72. For the Assessment Year 2011-12, deduction under Sec. 80G is available without any limit but at the rate of 50% on
(A) Prime Minister’s National Relief Fund.
(B) National Foundation for communal Harmany.
(C) Jawahar Lal Nehru Memorial Fund.
(D) Chief Minister Relief Fund.
Ans: C
73. Interest on capital paid by a firm to its partners, under the Income Tax Act, 1961, is allowed
(A) 6%
(B) 12%
(C) 15%
(D) 18%
Ans: B
74. Under capital gains head of the Income Tax Act, the income from sale of Household Furniture is
(A) Taxable Income
(B) Capital Gain
(C) Revenue Gain
(D) Exempted Income
Ans: D
75. Under Section 80E of the Income Tax Act, 1961 deduction in respect of payment of interest on loan taken for higher education shall be allowed up to
(A) Rs. 10,000
(B) Rs. 15,000
(C) Rs. 20,000
(D) Without any limit
Ans: D
76. Which of the following denote the structural changes in Indian economy?
(A) Primary sector contribution has gone down.
(B) Service sector contribution has gone up.
(C) Secondary sector has not changed much.
(D) All of the above
Ans: D
77. Broad Money has to be sensitized through:
(A) CRR
(B) SLR
(C) Repo Rate
(D) All of the above
Ans: D
78. Which one is not an element of legal environment?
(A) Act of Parliamentarians in Lok Sabha
(B) Indian Contract Act, 1872
(C) Indian Partnership Act, 1932
(D) Negotiable instruments Act, 1881
Ans: A
79. Out of the following, which are four dimensions of Human Development Index?
(i) Life Expectancy
(ii) Literacy Level
(iii) Success Rate of Marriages
(iv) Standard of Living
(v) Crime Rate
(vi) Corruption Level
(vii) Economic Entitlement
(viii) Foreign Visits
Codes :
(A) (i), (ii), (vi) and (viii)
(B) (i), (ii), (iv) and (vii)
(C) (ii), (iii), (vi) and (vii)
(D) (iii), (v), (vii) and (viii)
Ans: B
80. Public Enterprise is defined as
(A) An organisation run by joint efforts of Centre and State Governments.
(B) An organisation which caters to the needs relating to public utilities.
(C) An organisation in which capital is invested by public.
(D) An organisation owned and managed by public authorities for definite set of public purposes.
Ans: D
81. Match List-I with List-II and select the correct answer:
List – I List – II
(i) Measurement of income (a) Accrues to the equity of owners
(ii) Recognition of expense (b) Recognition of revenue
(iii) Basis of realization (c) Matching revenue with expenses
(iv) Identification of revenue (d) Accounting period
Codes :
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (b) (a) (c) (d)
(C) (c) (d) (a) (b)
(D) (c) (d) (b) (a)
Ans: D
82. Consider the following items:
(i) Debentures
(ii) Prepaid rent
(iii) Interest accrued
(iv) Bank overdraft
Which of them are current liabilities?
(A) (i), (ii), (iii) and (iv)
(B) (iv)
(C) (ii), (iii) and (iv)
(D) (i), (ii) and (iii)
Ans: B
83. Conversion cost is the sum of
(A) Indirect wages and factory overhead
(B) Direct wages, direct expenses and factory overhead
(C) Direct material cost and indirect wages
(D) Prime cost and selling & distribution overhead
Ans: B
84. (A) Assertion: Premium received on issue of shares is credited to share premium account but not to Profit and Loss account.
(R) Reasoning: Since share premium is not a trading profit, it is not distributed to shareholders.
(A) Both (A) and (R) are true but (R) is not correct explanation to (A).
(B) (A) is false but (R) is correct.
(C) Both (A) and (R) are true and (R) is correct explanation of (A).
(D) (A) is correct but (R) is false.
Ans: C
85. Consider the following:
(i) Basic defensive and interval ratio
(ii) Current ratio
(iii) Superquick ratio
(iv) Quick ratio Arrange these ratios in sequence to reflect the liquidity in descending order.
(A) (ii), (iv), (iii) and (i)
(B) (i), (ii), (iv) and (iii)
(C) (iv), (ii), (iii) and (i)
(D) (iii), (iv), (i) and (ii)
Ans: A
86. Normally Demand curve slopes
(A) Upward
(B) Downward
(C) Horizontal
(D) Vertical
Ans: B
87. Which of the following refers to Perfect Competition?
(i) There are restrictions on buyers and sellers
(ii) There are no restrictions on movement of goods
(iii) There are no restrictions on factors of production Correct one is
(A) only (i) and (ii)
(B) only (ii) and (iii)
(C) only (i) and (iii)
(D) only (i)
Ans: B
88. Assertion (A): Total utility will be maximum when marginal utility to price of respective products are equal.
Reason (R): Deviation from this situation leads to reduction in maximum utility.
(A) (A) and (R) are not correct.
(B) (A) is correct but (R) is not correct.
(C) (A) and (R) are correct.
(D) (A) is incorrect, (R) is correct.
Ans: C
89. Match List-I with List-II and select the correct answer.
List – I List – II
(i) Survival (a) Economic Objective
(ii) R.O.I (b) Natural Urge
(iii) Growth (c) Business Purpose
(iv) Innovation (d) Primary Objective
Codes :
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (iv) (iii) (ii) (i)
Ans: A
90. Consider the oligopoly models:
(i) Sweezy’s kinked demand curve model
(ii) Newman and Morgenstern Game Theory model
(iii) Cournal’s duopoly model
(iv) Baumal’s sales maximization model Arrange them in correct sequence as per order of evolution.
Codes :
(A) (iv), (iii), (ii), (i)
(B) (ii), (i), (iii), (iv)
(C) (iii), (i), (ii), (iv)
(D) (i), (iii), (ii), (iv)
Ans: C
91. Which of the following is not a restricted random sampling technique?
(A) Stratified sampling
(B) Simple random sampling
(C) Systematic sampling
(D) Multistage sampling
Ans: B
92. Classification of respondents only on the basis of gender is an application of
(A) Ordinal scale
(B) Nominal scale
(C) Interval scale
(D) Ratio scale
Ans: B
93. Karl Pearson’s co-efficient of correlation between two variables is
(A) the product of their standard deviations
(B) the square root of the product of their regression co-efficients
(C) the co-variance between the variables
(D) None of the above
Ans: B
94. Statistical software packages for research in social sciences include
(A) SPSS
(B) STATA
(C) MiniTab
(D) All of the above
Ans: D
95. F-test is used to test the significance of the differences between/among
(A) Two sample mean
(B) More than two samples mean
(C) Variance of two samples
(D) (B) and (C)
Ans: D
96. Match the following
List-I List-II
(i) The Practice of Management (a) Henry Fayol
(ii) Philosophy of Management (b) F.W. Taylor
(iii) Scientific Management (c) Oliver Sheldon
(iv) General and Industrial Administration (d) Peter F Drucker
Codes :
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (d) (c) (b) (a)
(C) (d) (c) (a) (b)
(D) (c) (d) (b) (a)
Ans: B
97. Identify the correct sequence of steps involved in planning:
(i) Selecting the best course of action
(ii) Establishing the sequence of activities
(iii) Establishment of objectives
(iv) Evaluating alternative courses
(v) Determining alternative courses
(A) (i), (ii), (iii), (iv) and (v)
(B) (iii), (v), (iv), (ii) and (i)
(C) (v), (iv), (iii), (ii) and (i)
(D) (iii), (v), (iv), (i) and (ii)
Ans: D
98. Assertion (A) : One can be sure about future course of actions by making good plans.
Reasoning (R) : Planning brings certainty in future course of actions of an organisation.
(A) (R) is correct but (A) is not correct.
(B) (A) is correct but (R) is not correct.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are not correct.
Ans: A
99. According to Kieth Devis, which one is not a barrier of communication?
(A) Physical Barriers
(B) Technological Barriers
(C) Personal Barriers
(D) Linguistic Barriers
Ans: B
100. While establishing relation between Maslow’s and Herzberg’s theories, which Needs of Hierachy Theory will fall under the Hygiene Factors?
(A) Self actualisation, esteem and social needs
(B) Esteem, social and safety needs
(C) Social, safety and physiological needs
(D) Only social needs
Ans: C
Reason (R): This is required as a part of export procedures.
Codes:
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are not correct.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: C
65. Which one of the statements is not true?
(A) Institutional infrastructure facilitates market intelligence.
(B) STC is the chief canalizing agent for export and import of agricultural products.
(C) IIPO organizes trade fairs and exhibitions.
(D) Letter of credit does not indicate that the bank will pay the value of imports to the exporter.
Ans: D
66. Match the items of List – I with items of List – II.
List – I List – II
a. Selective credit control 1. Consumer Credit Regulation
b. Encourage credit for desirable use 2. Cash Reserve Ratio
c. Quantitative credit control 3. Variation in Margin
d. Bank Rate 4. Re-discounting Rate
Codes:
a b c d
(A) 4 2 3 1
(B) 3 1 2 4
(C) 1 3 2 4
(D) 2 1 3 4
Ans: B
67. Assertion (A): Use of paper money is replaced by plastic money. The future will see the electronic money clearance through satellite networking.
Reason (R): RBI is encouraging e-banking.
Codes:
(A) (A) is false, but (R) is true.
(B) (A) is true, but (R) is false.
(C) Both (A) and (R) are false.
(D) Both (A) and (R) are true.
Ans: D
68. Which one is not Finance Company?
(A) Hire-Purchase Finance Company
(B) IRDA
(C) Mutual Benefit Finance Companies
(D) Loan Companies
Ans: B
69. The Securities and Exchange Board of India was not entrusted with the function of
(A) Investor Protection.
(B) Ensuring Fair practices by companies.
(C) Promotion of efficient services by brokers.
(D) Improving the earnings of equity holders.
Ans: D
70. Which one is a not Non-Marketable security?
(A) Corporate Securities
(B) Bank Deposits
(C) Deposits with Companies
(D) Post Office Certificates and Deposits
Ans: A
71. Minimum Alternative Tax (MAT) under Sec.115 JB of the Income Tax Act is applicable on
(A) Partnership firm
(B) Association of persons
(C) Certain companies
(D) All types of companies
Ans: C
72. For the Assessment Year 2011-12, deduction under Sec. 80G is available without any limit but at the rate of 50% on
(A) Prime Minister’s National Relief Fund.
(B) National Foundation for communal Harmany.
(C) Jawahar Lal Nehru Memorial Fund.
(D) Chief Minister Relief Fund.
Ans: C
73. Interest on capital paid by a firm to its partners, under the Income Tax Act, 1961, is allowed
(A) 6%
(B) 12%
(C) 15%
(D) 18%
Ans: B
74. Under capital gains head of the Income Tax Act, the income from sale of Household Furniture is
(A) Taxable Income
(B) Capital Gain
(C) Revenue Gain
(D) Exempted Income
Ans: D
75. Under Section 80E of the Income Tax Act, 1961 deduction in respect of payment of interest on loan taken for higher education shall be allowed up to
(A) Rs. 10,000
(B) Rs. 15,000
(C) Rs. 20,000
(D) Without any limit
Ans: D
76. Which of the following denote the structural changes in Indian economy?
(A) Primary sector contribution has gone down.
(B) Service sector contribution has gone up.
(C) Secondary sector has not changed much.
(D) All of the above
Ans: D
77. Broad Money has to be sensitized through:
(A) CRR
(B) SLR
(C) Repo Rate
(D) All of the above
Ans: D
78. Which one is not an element of legal environment?
(A) Act of Parliamentarians in Lok Sabha
(B) Indian Contract Act, 1872
(C) Indian Partnership Act, 1932
(D) Negotiable instruments Act, 1881
Ans: A
79. Out of the following, which are four dimensions of Human Development Index?
(i) Life Expectancy
(ii) Literacy Level
(iii) Success Rate of Marriages
(iv) Standard of Living
(v) Crime Rate
(vi) Corruption Level
(vii) Economic Entitlement
(viii) Foreign Visits
Codes :
(A) (i), (ii), (vi) and (viii)
(B) (i), (ii), (iv) and (vii)
(C) (ii), (iii), (vi) and (vii)
(D) (iii), (v), (vii) and (viii)
Ans: B
80. Public Enterprise is defined as
(A) An organisation run by joint efforts of Centre and State Governments.
(B) An organisation which caters to the needs relating to public utilities.
(C) An organisation in which capital is invested by public.
(D) An organisation owned and managed by public authorities for definite set of public purposes.
Ans: D
81. Match List-I with List-II and select the correct answer:
List – I List – II
(i) Measurement of income (a) Accrues to the equity of owners
(ii) Recognition of expense (b) Recognition of revenue
(iii) Basis of realization (c) Matching revenue with expenses
(iv) Identification of revenue (d) Accounting period
Codes :
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (b) (a) (c) (d)
(C) (c) (d) (a) (b)
(D) (c) (d) (b) (a)
Ans: D
82. Consider the following items:
(i) Debentures
(ii) Prepaid rent
(iii) Interest accrued
(iv) Bank overdraft
Which of them are current liabilities?
(A) (i), (ii), (iii) and (iv)
(B) (iv)
(C) (ii), (iii) and (iv)
(D) (i), (ii) and (iii)
Ans: B
83. Conversion cost is the sum of
(A) Indirect wages and factory overhead
(B) Direct wages, direct expenses and factory overhead
(C) Direct material cost and indirect wages
(D) Prime cost and selling & distribution overhead
Ans: B
84. (A) Assertion: Premium received on issue of shares is credited to share premium account but not to Profit and Loss account.
(R) Reasoning: Since share premium is not a trading profit, it is not distributed to shareholders.
(A) Both (A) and (R) are true but (R) is not correct explanation to (A).
(B) (A) is false but (R) is correct.
(C) Both (A) and (R) are true and (R) is correct explanation of (A).
(D) (A) is correct but (R) is false.
Ans: C
85. Consider the following:
(i) Basic defensive and interval ratio
(ii) Current ratio
(iii) Superquick ratio
(iv) Quick ratio Arrange these ratios in sequence to reflect the liquidity in descending order.
(A) (ii), (iv), (iii) and (i)
(B) (i), (ii), (iv) and (iii)
(C) (iv), (ii), (iii) and (i)
(D) (iii), (iv), (i) and (ii)
Ans: A
86. Normally Demand curve slopes
(A) Upward
(B) Downward
(C) Horizontal
(D) Vertical
Ans: B
87. Which of the following refers to Perfect Competition?
(i) There are restrictions on buyers and sellers
(ii) There are no restrictions on movement of goods
(iii) There are no restrictions on factors of production Correct one is
(A) only (i) and (ii)
(B) only (ii) and (iii)
(C) only (i) and (iii)
(D) only (i)
Ans: B
88. Assertion (A): Total utility will be maximum when marginal utility to price of respective products are equal.
Reason (R): Deviation from this situation leads to reduction in maximum utility.
(A) (A) and (R) are not correct.
(B) (A) is correct but (R) is not correct.
(C) (A) and (R) are correct.
(D) (A) is incorrect, (R) is correct.
Ans: C
89. Match List-I with List-II and select the correct answer.
List – I List – II
(i) Survival (a) Economic Objective
(ii) R.O.I (b) Natural Urge
(iii) Growth (c) Business Purpose
(iv) Innovation (d) Primary Objective
Codes :
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (iv) (iii) (ii) (i)
Ans: A
90. Consider the oligopoly models:
(i) Sweezy’s kinked demand curve model
(ii) Newman and Morgenstern Game Theory model
(iii) Cournal’s duopoly model
(iv) Baumal’s sales maximization model Arrange them in correct sequence as per order of evolution.
Codes :
(A) (iv), (iii), (ii), (i)
(B) (ii), (i), (iii), (iv)
(C) (iii), (i), (ii), (iv)
(D) (i), (iii), (ii), (iv)
Ans: C
91. Which of the following is not a restricted random sampling technique?
(A) Stratified sampling
(B) Simple random sampling
(C) Systematic sampling
(D) Multistage sampling
Ans: B
92. Classification of respondents only on the basis of gender is an application of
(A) Ordinal scale
(B) Nominal scale
(C) Interval scale
(D) Ratio scale
Ans: B
93. Karl Pearson’s co-efficient of correlation between two variables is
(A) the product of their standard deviations
(B) the square root of the product of their regression co-efficients
(C) the co-variance between the variables
(D) None of the above
Ans: B
94. Statistical software packages for research in social sciences include
(A) SPSS
(B) STATA
(C) MiniTab
(D) All of the above
Ans: D
95. F-test is used to test the significance of the differences between/among
(A) Two sample mean
(B) More than two samples mean
(C) Variance of two samples
(D) (B) and (C)
Ans: D
96. Match the following
List-I List-II
(i) The Practice of Management (a) Henry Fayol
(ii) Philosophy of Management (b) F.W. Taylor
(iii) Scientific Management (c) Oliver Sheldon
(iv) General and Industrial Administration (d) Peter F Drucker
Codes :
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (d) (c) (b) (a)
(C) (d) (c) (a) (b)
(D) (c) (d) (b) (a)
Ans: B
97. Identify the correct sequence of steps involved in planning:
(i) Selecting the best course of action
(ii) Establishing the sequence of activities
(iii) Establishment of objectives
(iv) Evaluating alternative courses
(v) Determining alternative courses
(A) (i), (ii), (iii), (iv) and (v)
(B) (iii), (v), (iv), (ii) and (i)
(C) (v), (iv), (iii), (ii) and (i)
(D) (iii), (v), (iv), (i) and (ii)
Ans: D
98. Assertion (A) : One can be sure about future course of actions by making good plans.
Reasoning (R) : Planning brings certainty in future course of actions of an organisation.
(A) (R) is correct but (A) is not correct.
(B) (A) is correct but (R) is not correct.
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are not correct.
Ans: A
99. According to Kieth Devis, which one is not a barrier of communication?
(A) Physical Barriers
(B) Technological Barriers
(C) Personal Barriers
(D) Linguistic Barriers
Ans: B
100. While establishing relation between Maslow’s and Herzberg’s theories, which Needs of Hierachy Theory will fall under the Hygiene Factors?
(A) Self actualisation, esteem and social needs
(B) Esteem, social and safety needs
(C) Social, safety and physiological needs
(D) Only social needs
Ans: C