Karnataka SET 2013 Commerce – II

  1. SEBI allowed trading in stock index futures in
    (a) January 2001
    (b) January 2002
    (c) July 2002
    (d) None of these
  2. During XI Five year plan it was proposed to spend % of GDP on education.
    (a) 1.5
    (b) 2.5
    (c) 3.5
    (d) None of these
  3. Foreign Universities Bill proposes
    i) To promote R and D
    ii) To improve quality of higher education
    iii) To boost investment in higher education
    Which of the following combination is correct ?
    (a) (1) and (2)
    (b) (1) and (3)
    (c) (2) and (3)
    (d) (1), (2) and (3)
  4. Assertion (A) : Fiscal deficit shall lead to inflation
    Reason (R) : The entire fiscal deficit is filed through monetisaition
    Which of the following is a correct combination?
    (a) Both A and R are correct
    (b) Both A and R are incorrect
    (c) A is correct and R is incorrect
    (d) A is incorrect and R is correct
  5. Match The List under List – A with those under List – B and select the correct answer from the choice given below
    List – A  List – B
    1) Gats i) Monopoly
    2) CCI  ii) Banking service
    3) SERA  iii) Futures
    4) IRDA iv) Actual science

    Choices:
    i ii iii iv
    (a) 1 2 3 4
    (b) 4 1 2 3
    (c) 3 4 1 2
    (d) 2 1 3 4

  6. Question not found
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  10. Question not found
  11. When cost-output elasticity is equal to one, scale economics will be
    (a) Zero
    (b) Less than zero
    (c) More than zero
    (d) None of the above
  12. If the short-run cost function of a firm is TC = 300 + 10 Q, the marginal cost is
    (a) 300
    (b) 10
    (c) 30 Q
    (d) 10 Q
  13. Which combination of the following factors is the right answer for long-run equilibrium in a perfectly competitive market ?
    (i) Marginal cost
    (ii) Average cost
    (iii) Marginal Revenue
    (iv) Average Revenue
    (a) MC = MR
    (b) AC = AR
    (c) AC = AR = MR
    (d) AC = MC = MR = AR
  14. Assertion (A) : If the elasticity of demand is infinity, the demand curve is a vertical straight line.
    Reason (R) : The elasticity of demand at the mid- point on the demand curve is equal to ne.
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) (A) is correct and (R) is incorrect
    (c) (A) is incorrect and (R) is correct
    (d) Both (A) and (R) are incorrect
  15. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A  List – B
    i) Positive Economics 1) EBIT
    ii) Normative Economics  2) Fiscal policy
    iii) Micro Economics  3) “What ought to be”
    iv) Macro Economics  4) “What is”

    Choices:
    i ii iii iv
    (a) 4 3 1 2
    (b) 1 2 3 4
    (c) 4 3 2 1
    (d) 3 1 2 4

  16. Suppose the minimum value of dependent variable is 4 and the co-efficient value of independent variable is 2 in a particular estimation line with one independent variable. Given the value of independent variable as 2, what should be the value of dependent variable ?
    (a) 8
    (b) 10
    (c) -1
    (d) 0
  17. With a lower significance level, the probability of rejecting a null hypothesis that is actually true
    (a) Increase
    (b) Decrease
    (c) Remain the same
    (d) Become zero
  18. Which combination of sampling method is not a probability sampling method ?
    i) Stratified sampling
    ii) Systematic sampling
    iii) Clustered sampling
    iv) Judgement sampling
    Which of the following combination is correct ?
    (a) (1) and (2)
    (b) (1) and (3)
    (c) (2) and (3)
    (d) (3) and (4)
  19. Assertion (A) : The hypothesized value is correct and accurate.
    Reason (R) : If the value of the test statistic falls in acceptance region, the hypothesis is accepted.
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) (A) is correct and (R) is incorrect
    (c) (A) is incorrect and (R) is correct
    (d) Both (A) and (R) are incorrect
  20. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A List – B
    i) Chi- square test  1) ANOVA
    ii) t-test  2) Goodness of fit test
    iii) F-test  3) Large sample test
    iv) Z-test 4) Paired sample test

    Choices:
    i ii iii iv
    (a) 2 3 1 4
    (b) 4 2 3 1
    (c) 2 4 1 3
    (d) 2 1 3 4

  21. MBE stands for reporting only significant
    (a) Events
    (b) Decision
    (c) Deviations
    (d) Achievements
  22. Which of the following is not a concept of Zohari window ?
    (a) Task Master
    (b) Span of control
    (c) Team leader
    (d) Country club
  23. According to Herzberg, employee motivation is a function of
    i) Ambience
    ii) Goals
    iii) Job security
    iv) Emplowement
    Which of the following combination is correct ?
    (a) (1) and (2)
    (b) (2) and (3)
    (c) (2) and (4)
    (d) (3) and (4)
  24. Assertion (A) : BOD is not responsible for ensuring corporate governance.
    Reason (R): MD is the policy maker of the organisation
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) (A) is correct and (R) is incorrect
    (c) (A) is incorrect and (R) is correct
    (d) Both (A) and (R) are incorrect
  25. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A  List – B
    i) Black 1) Span of control
    ii) Drucker  2) Motivation theroy
    iii) Graicuna 3) Super ordinate goals
    iv) McGregor  4) Country club

    Choices:
    i ii iii iv
    (a) 4 3 1 2
    (b) 4 2 3 1
    (c) 4 1 2 3
    (d) 3 1 4 2

  26. A societal product which generates both immediate satisfaction and long-run benefits is known as
    (a) Desirable product
    (b) Salutary product
    (c) Pleasing product
    (d) Deficient product
  27. A set of human characteristics associated with a brand, which has symbolic or self- expressive meanings for consumers is known as
    (a) Brand loyalty
    (b) Brand extension
    (c) Brand personality
    (d) Brand equity
  28. Which of the following is the correct way of consumer adoption process in diffusion of innovation ?
    i) Laggards, innovators
    ii) Innovators, Laggards, Middle majority
    iii) Innovators, Early Adoptors, Middle Majority
    iv) Laggards
    (a) (1) and (3)
    (b) (2) and (3)
    (c) (1) and (2)
    (d) (3) and (4)
  29. Assertion (A) : Lifestyle is a manifestation of a number of behavioural factors.
    Reason (R) : Market segmentation not necessarily has to always depend on life- styles of customers.
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) (A) is correct and (R) is incorrect
    (c) (A) is incorrect and (R) is correct
    (d) Both (A) and (R) are incorrect
  30. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A List – B
    i) Attention 1) Information search
    ii) Interest  2) Purchase decision
    iii) Desire  3) Need recognition
    iv) Action  4) Evaluation of alternatives

    Choices:
    i ii iii iv
    (a) 4 3 2 1
    (b) 3 1 4 2
    (c) 1 2 3 4
    (d) 1 3 4 2

  31. If the degree of operating leverage is 2 and that of financial leverage is 3, the percentage change in the EPS for a unitary change in sales will be
    (a) 2%
    (b) 3%
    (c) 6%
    (d) 5%
  32. If the expected return on stock is 18%, risk-free rate is 6% and the return on the market portfolio is 12%, then the systematic risk value of the stock will be
    (a) 1.00
    (b) 1.20
    (c) 1.30
    (d) 2.00
  33. Which combination of the following variables will influence ROE ?
    i) Leverage Ratio
    ii) Profit margin
    iii) Sales to assets ratio
    iv) Debt burden
    (a) (1), (2) and (3)
    (b) (1), (2) and (4)
    (c) (2), (3) and (4)
    (d) (1), (2), (3) and (4)
  34. Assertion (A) : A project acceptable under NPV criteria is always acceptable under IRR criteria.
    Reason (R): Discount rate under IRR is the same as the IRR itself.
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) Both (A) and (R) are incorrect
    (c) (A) is incorrect and (R) is correct
    (d) (A) is correct and (R) is incorrect
  35. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A  List – B
    i) Linter 1) Home-made Leverage
    ii) Durand 2) Investments
    iii) Sharpe  3) Dividend model
    iv) M and M  4) NOI

    Choices:
    i ii iii iv
    (a) 3 2 4 1
    (b) 1 2 3 4
    (c) 3 4 2 1
    (d) 4 3 2 1

  36. “The grapevine is valuable as a barometer of public opinion in the organisation” said by
    (a) Barnad
    (b) Simon
    (c) Norbert
    (d) Keith Davis
  37. HRD system or processes may include the following process mechanisms or sub-systems.
    (a) Career planning, man-power planning and collective bargaining
    (b) Performance appraisal, motivation and grievance handling
    (c) Performance appraisal, career planning and organisation development
    (d) Training and development, communication and quality of worklife
  38. Which combination of the following factors signifies job analysis ?
    i) Job enrichment
    ii) Job enlargement
    iii) Job description
    iv) Job specification
    (a) (1) and (2)
    (b) (3) and (4)
    (c) (2) and (3)
    (d) (1) and (3)
  39. Assertion (A) : MBO is a motivational tool.
    Reason (R) : Employees participate in setting the objectives.
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) Both (A) and (R) are incorrect
    (c) (A) is incorrect and (R) is correct
    (d) (A) is correct and (R) is incorrect
  40. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A  List – B
    i) A store clerk tells the top executive when to buy a Commodity 1) Leadership by personality
    ii) A youth rushing to save life and property of a house on fire commands neighbours to collect water  2) Leadership by position
    iii) A newly elected secretary advises members about their duties  3) Leadership by function
    iv) A leader attempts to bend his followers to his will  4) Leadership by situation

    Choices:
    i ii iii iv
    (a) 1 3 2 4
    (b) 2 4 3 1
    (c) 3 4 2 1
    (d) 3 2 4 1

  41. The programme in which individual banks adopt a particular district for intensive development is called
    (a) Integrated Rural Development Programme
    (b) Lead Bank Scheme
    (c) Service Area Approach
    (d) None of these
  42. Which among the following is not true ?
    (a) SFCs can subscribe to debentures floated by industrial concerns
    (b) SFCs are permitted to allot a portion of their shares to private parties
    (c) SFCs can subscribe directly to shares of any company
    (d) SFCs can underwrite the issues of shares and debentures of industrial concerns
  43. The Narasimhan Committee (1991) strived to achieve :
    i) A degree of operational flexibility
    ii) Internal autonomy in decision- making
    iii) Greater degree of professionalism
    Which of the following combination is correct ?
    (a) (1) and (2)
    (b) (1) and (3)
    (c) (2) and (3)
    (d) (1),(2) and (3)
  44. Assertion (A) : Liberalisation ensures sustained growth of banking sector.
    Reason (R) : Liberalisation eliminates weaker banks.
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) Both (A) and (R) are incorrect
    (c) (A) is incorrect and (R) is correct
    (d) (A) is correct and (R) is incorrect
  45. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A  List – B
    i) State Co-operative Bank  1) Private Bank
    ii) Foreign Bank  2) Dena Bank
    iii) Nationalised Bank  3) Apex Bank
    iv) Karnataka Bank  4) Stan Chart Bank

    Choices:
    i ii iii iv
    (a) 4 2 1 3
    (b)3 4 2 1
    (c) 2 4 1 3
    (d) 4 3 2 1

  46. GDRs are a form of
    (a) International Bonds
    (b) International Equities
    (c) International Money   Market Instruments
    (d) International Deposits
  47. A vertical spread is also known as
    (a) Diagonal spread
    (b) Money spread
    (c) Calendar spread
    (d) Call spread
  48. Which combination of the following factors is associated with uncoverd IRP theory ?
    i) Today’s spot rate
    ii) Forward rate
    iii) Expected spot-rate
    iv) Actual spot-rate at the end of the period
    (a) (1) and (2)
    (b) (1) and (3)
    (c) (2) and (3)
    (d) (1),(2) and (3)
  49. Assertion (A) : IMF member countries can use SDRs for meeting their import obligations.
    Reason (R) : SDRs are issued to solve the international liquidity problems.
    Which of the following is a correct combination ?
    (a) Both (A) and (R) are correct
    (b) Both (A) and (R) are incorrect
    (c) (A) is incorrect and (R) is correct
    (d) (A) is correct and (R) is incorrect
  50. Match the items under List – A with those under List – B and select the correct answer from the choices given below
    List – A  List – B
    i) ECP  1) IPRs
    ii) ADB 2) International Money Market Instrument
    iii) GI  3) Uniliver
    iv) MNCs  4) Multilateral Development Bank

    Choices:
    i ii iii iv
    (a) 2 1 3 4
    (b) 2 4 1 3
    (c) 4 2 1 3
    (d) 2 3 1 4