- Current account balance refers to the net flow between home country and foreign country of goods, service, income and
(a) Taxes
(b) Valuables
(c) Gifts
(d) Claims - Which of the following is not a member of SAARC?
(a) Afghanistan
(b) Nepal
(c) Maldives
(d) Mauritius - With regard to WTO, subsidies are covered in two separate economic law agreements. Which are they?
(a) The Reform Treaty and the Treaty of Rome
(b) The NAFTA and the Organization of American States of Charter
(c) The IMF’s Article of Agreements and the European Central Bank’s Statute
(d) The GATT and the Agreements on Subsides and Countervailing Measures - The Linkage Leverage Learning Hypothesis explains
(a) The gradual internationalization path taken by incumbent TNCs.
(b) The internationalization strategy of micro TNCs.
(c) The emergence of TNCs from the developing countries.
(d) The gradual development of market knowledge from the parental network. - Bank deposit of non-resident Indians come under the
(a) Current Account
(b) Capital Account
(c) Errors and omissions
(d) Loans and advances - The main function of the IMF is to
(a) Arrange international deposits from banks.
(b) Help to solve Balance of Payments problems of member countries
(c) Act as a private sector lending arm of World Bank
(d) Finance investments to developing countries. - Duty drawback is available fro
(a) Import duty or imported components.
(b) Central excise on indigenous components.
(c) Import duty and GST on Indigenous components.
(d) Import duty, Central excise and V.A.T. - The phenomenon of outsourcing has its roots in the economic theory of
(a) Product Life Cycle
(b) Linking Leverage Learning
(c) Absolute Advantage
(d) Comparative Advantage - Laissez faire policy is adopted by
(a) Capitalist economy
(b) Mixed economy
(c) Socialist economy
(d) Communist economy - Which of the following is not a non tariff barrier?
(a) Quota
(b) Embargo
(c) Countervailing duty
(d) Licencing - Face value of debentures of subsidiary company held by holding company is deducted from
(a) Debentures
(b) Cost of control
(c) Minority interest
(d) Debentures in consolidated balance sheet - Operating activities include:
(i) Principle revenue generating activities of an entity.
(ii) Other activities that are not investing or financing activities.
(a) i only
(b) ii only
(c) i and ii
(d) either i or ii - Goodwill arising on amalgamation is to be
(a) Amortised on a systematic basic, normally over five years.
(b) Adjusted against reserve or profit and loss account balance.
(c) Retained in the book of the transferee company.
(d) Retained in the books of the transferor company. - Debentures are Rs.2,50,000 and Rs. 3,50,000 in the balance sheets for 2018 and 2019 respectively.1,000 of the debentures were issued to a supplier for the purchase of a machine. Determine the amount of issue of debentures for the purpose of Fund Flow Statements.
(a) Rs. 60,000
(b) Rs. 40,000
(c) Rs. 10,000
(d) Rs. 20,000 - AT the time of dissolution of a partnership firm
(a) All the assets are transferred to realization A/c.
(b) Only current assets are transferred to realization A/c.
(c) Non-cash assets are transferred to Realization A/c.
(d) Only liquid assets are transferred to realization A/c. - A Company can improve (lower) its Debt to Total Assets ratio by doing which of the following?
(a) Selling common stock
(b) Shifting long Term to short term debt
(c) Shifting short term to long term debt
(d) Borrowing more - Different management accounting techniques can be used to account for environmental costs. One of these techniques involves analyzing costs under three distinct categories: material, system, and delivery & disposal. What is this technique known as?
(a) Activity – based costing
(b) Life – Cycle – Costing
(c) Input – Output – Analysis
(d) Flow – Cost- Accounting - Under conditions of unchanged cost structure and selling price over the consecutive two years, the sales and profits of an enterprise were as follows:
Sales Profits Rs. Rs. 2018 1,20,000 9,000 2019 1,40,000 13,000 The profit/volume ratio of the enterprise was
(a) 25%
(b) 30%
(c) 20%
(d) 15% - On dissolution of a partnership firm, the Realization A/c is debited with
(a) All the liabilities of the firm.
(b) Cash received from the sale of the assets
(c) Any assets taken over by one of the partners.
(d) All assets to be realized. - The rate of discount on issue of shares cannot exceed__________per cent of the nominal value of the shares.
(a) 10
(b) 20
(c) 15
(d) 5 - Giffen goods are those goods
(a) For which demand increase as price increases.
(b) Which have a high income elasticity of demand.
(c) Which have short supply.
(d) Which have low cross elasticity of demand. - An indifference curve is always
(a) Concave to the origin
(b) Convex to the origin
(c) Parallel to the horizontal axis.
(d) Parallel to the vertical axis. - If price elasticity of demand is infinity (ep=∞), the demand curve will be
(a) A vertical straight line.
(b) A horizontal straight line.
(c) A downward failing straight line.
(d) An upward rising straight line. - If two goods are substitutable the Gross price elasticity of demand will be
(a) Zero
(b) Negative
(c) Positive
(d) Infinity - ________operates, when percentage change in output is more than the percentage change in inputs.
(a) Increasing returns to scale
(b) Constant returns to scale
(c) Variable returns to scale
(d) Decreasing returns to scale - A cost function is given by C=8Q2+10Q+20, where Q refers to the output produced and C is the total cost of production. The average variable cost will be:
(a) 8Q2+10Q
(b) 16Q+10
(c) 8Q+10
(d) 20/Q+8Q+10 - The shape of the average fixed cost curve is
(a) A straight line parallel to the horizontal axis.
(b) A straight line parallel to the vertical axis.
(c) A rectangular hyperbola.
(d) A downward falling straight line. - Break even point is the point where
(a) P<AC
(b) P=AVC
(c) P>AC
(d) P=AC - What does monopolistic competition have in common with monopoly?
(a) A large number of firms
(b) Mutual interdependence
(c) The ability to collude with respect to price
(d) A downward sloping demand curve - In the kinked demand curve model of oligopoly the existence of the link leads to
(a) A continuous marginal revenue curve.
(b) A discontinuous marginal revenue curve.
(c) Two parallel marginal revenue curve.
(d) Two perpendicular marginal revenue curve. - In capital budgeting the term capital rationing implies that
(a) No retained earning available.
(b) Limited funds are available for investment.
(c) No external funds can be raised.
(d) No fresh investment is required in the current year. - The concept of cost of capital can also be explained in terms of________cost. Which one of the following can be used to fill in the blank?
(a) Opportunity
(b) Variable
(c) Fixed
(d) Sunk - The currency crisis of September 1992 was originated due to breaking down of
(a) International Monetary System
(b) European Monetary System
(c) Bretton Woods System
(d) Floating Rate System - Match the items of List I with List II those of
List I List II (a) ABC Analysis (i) Dividend Decision (b) Walter Model (ii) Capital Budgeting (c) Capital Rationing (iii) Capital structure (d) Net Operating Income Approach (iv) Working Capital Management Decision Code:
a, b, c, d
(a) i iii, ii, iv
(b) ii, i, iii, iv
(c) iv, i, ii, iii
(d) iii, i, ii, iv - Profit Before Tax (PBT) of a firm has increased by 40per cent as result of 10 percent increase in sales. Operating leverage of the sum firms is 2. What will be the financial leverage of the firm?
(a) 4
(b) 20
(c) 2
(d) 1 - In the foreign exchange market hedging activity means
(a) Earning riskless profit.
(b) Earning Risky profit.
(c) Protection against risk.
(d) Bearing foreign exchange risk. - If a company sells its account receivable to another party to raise funds, it is known as
(a) Securitization
(b) Factoring
(c) Pledging
(d) Hedging - If the expected return on market portfolio is 20%, beta of portfolio is 1:2 and the risk free rate is 10%, the expected return on the above portfolio is equal to
(a) 22%
(b) 12%
(c) 20%
(d) 325 - Dividends are the __________of a company distributed amongst members in proportion to their shares. Which one of the following is appropriate to fill in the blank?
(a) Divisible profits
(b) Capital reserve
(c) Assets with cash and bank
(d) Stock split - Which one involves increasing the par value and decreasing the number of outstanding shares proportionately?
(a) Reverse stock split
(b) Stock split
(c) Bonus issue
(d) ESOP - For open ended classes, the appropriate measure of central tendency is
(a) Mode
(b) Arithmetic Mean
(c) Harmonic Mean
(d) Median - The arithmetic mean of a group of 100 items is found to be 50 and that of another group of 150 items is 100. The arithmetic mean of all items will be
(a) 185
(b) 80
(c) 90
(d) 180 - If there is no relation between two variables, the value of the coefficient of correlation will be
(a) +1
(b) -1
(c) 0.5
(d) 0 - Report of the World Bank is a source of
(a) Schedule data
(b) Observation data
(c) Secondary data
(d) Primary data - If the angle between the two regression lines is 90°, the coefficient of correlation between two variables will be
(a) |1
(b) -1
(c) 0.5
(d) 0 - The parameters of the standard normal distribution are
(a) (0, 0)
(b) (1, 1)
(c) (0, 1)
(d) (1, 0) - The most widely accepted sampling is
(a) Simple Random Sampling
(b) Purposive Sampling
(c) Quota Sampling
(d) Convenience Sampling - For theoretical distribution, mean=variance is in
(a) Simple Random Sampling
(b) Purposive Sampling
(c) Quota Sampling
(d) Convenience Sampling - Chi Square Distribution is used for the test of
(a) Goodness of fit
(b) Variance ratio test
(c) Small sample test
(d) Hypothetical value of population parameter - For a contingency table with 4 rows and 3 columns, the degree of freedom will be
(a) 12
(b) 6
(c) 20
(d) 10 - Which of the following is not a stage in ‘Maslow’s Hierarchy of Needs’ theory?
(a) Psychological
(b) Security
(c) Social
(d) Self actualization - Which of the following is not a control technique in management?
(a) Break Even Analysis
(b) Environmental Analysis
(c) Budgetary Control
(d) Responsibility Accounting - According to Vroom’s Expectancy Theory, Motivation=Valence ×Expectancy ×……….. which of the following terms would be most appropriate in the blank?
(a) Effort
(b) Drive
(c) Instrumentality
(d) Risk - According to the managerial Grid Framework conceived by blake an mouton, wherein ‘concern for production/task’ is measured on the X-Axis and ‘concern for people’ is measured on the Y-Axis. Which leadership style do the coordinates (1, 9) represent, given that on each axis 1 represent least concern and 9 represents greatest concern?
(a) Team
(b) Task
(c) Middle of the road
(d) County club - Match the following :
List I List II Contributor Organisation theory (a) F.W.Taylor (i) Application of psychology to industry and management (b) Max Weber (ii) System approach to management (c) Chester Bernard (iii) Emphasis in rules and regulation (d) Hugo Munsterberg (iv) Increased productivity through efficiency in production Code:
a, b, c, d
(a) iv iii, ii, i
(b) iii, iv, ii, i
(c) iv, iii, i, ii
(d) ii, iii, iv, i - A systematic comparison between jobs done in order to determine their relative worth is known as
(a) Job Analysis
(b) Job Evaluation
(c) Job Enrichment
(d) Job Design - Which of the following is not an operative function of human resource management?
(a) Control
(b) Development
(c) Maintenance
(d) Procurement - One method of resolving conflict is to ensure shared goal attainment between the conflicting parties. Method is called
(a) Problem solving
(b) Superordinate path
(c) Smoothing
(d) Compromise - Which one of the following is not among the ‘Big Five’ personality traits?
(a) Agreeableness
(b) Neuroticism
(c) Extroversion
(d) Cautious - The practice of inducing employees from competing organization to join for better pay packages to your own is known as
(a) Talk in interview
(b) Leap Frogging
(c) Head Hunting
(d) Poaching - Rolling Settlement occurs in case of
(a) Equity Shares
(b) Government Securities
(c) De-Mat Securities
(d) Re-Mat Securities - Credit rating is mandatory for public or right issue of debt instruments:
(a) Irrespective of their maturity period
(b) Having maturity period of more than 12 months
(c) Having maturity period of more than 24months
(d) Having maturity period of more than 36 months - For the following statements of Assertion (A) and Reason (R) indicates the correct code:
Assertion (A) : Schedule Banks are required to maintain a certain minimum balance in their accounts with RBI.
Reason (R) : The Schedule Banks are entitiled to borrowing and rediscounting facilities from RBI.
Codes:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true and (R) is NOT the correct explanation of (A).
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true. - For the following statements of Assertion (A) and Reason (R) indicates the correct code:
Assertion (A) : Capital to Risk weighted Assets Ratio (CRRAR) was introduced in 1992,
Reason (R) : Capital Adequacy Ratio (CAR) is also known as Capital to Risk Weighted Assets Ratio (CRAR).
Codes:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true and (R) is NOT the correct explanation of (A).
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true. - Match the following :
List I List II (a) Bull (i) Agrees to sell on a fixed date but finds it different to meet his commitment. (b) Bear (ii) Buys the shares to sell them in future expecting a price rise. (c) Lame Duck (iii) Neither buys nor sells but merely applies for shares to sell at a premium. (d) Stag (iv) Agrees to sell on a fixed date expecting a fall in the price. Code:
a, b, c, d
(a) ii i, iii, iv
(b) i, iii, ii, iv
(c) iv, i, iii, ii
(d) ii, iv, i, iii - Match the following :
List I List II (a) Pillar-1 (i) Supervisory review process (b) Pillar -2 (ii) Market discipline (c) Pillar -3 (iii) Minimum regulatory capital requirement based on Risk Weighted Assets (RWA’s) Codes:
a, b, c, d
(a) i ii, ii
(b) i, iii, iii
(c) iii, ii, ii
(d) iii, i, i - A ‘Bear’ cannot always keep his commitment because the price does not move the way he wants the share to move and he is, therefore , said to be struggling like a
(a) Lame Bear
(b) Lame Stag
(c) Lame Bull
(d) Lame Duck - Match the following :
List I List II (a) Reserve Bank of India (i) 1975 (b) Nationalization of 14major Commercial Banks (ii) 1935 (c) Nationalization of 6th Commercial Banks (iii) 1969 (d) Regional Rural Bank (iv) 1980 Codes:
a, b, c, d
(a) ii iii, i, iv
(b) ii, iii, iv, i
(c) iii, i, ii, iv
(d) i, ii, iii, iv - Crawling Peg System means
(a) Fixed Exchange Rate System
(b) Floating Exchange Rate System
(c) Hybrid of Fixed and floating Exchange System
(d) Pound –Sterling System - Match the following :
List I List II (a) Interbank call market (i) Money market (b) Commercial Bills (ii) Promissory Note (c) Commercial paper Market (iii) Short-term maturity (d) Treasury Bill (iv) Government papers Codes:
a, b, c, d
(a) i ii, iii, iv
(b) i, iii, iv, ii
(c) iii, i, ii, iv
(d) iii, i, iv, ii - Market penetration pricing strategy is suitable when
(a) Lower price encourage actual competition.
(b) The demand of project is inelastic.
(c) The production and distribution costs fall with increasing production.
(d) A higher price discourages competitors from entering the market. - At which stage of new product development process, the launching of the new product will take place?
(a) Business Analysis
(b) Test Marketing
(c) Commercialization
(d) Marketing Strategy Development - Which communication component is not a paid form of communication?
(a) Advertising
(b) Sales Promotion
(c) Personal selling
(d) Publicity - Which of the following is not a function of distribution?
(a) Manufacturing
(b) Warehousing
(c) Inventorying
(d) Transportation - Pricing is one of the essential component of
(a) Promotion Mix
(b) Marketing Mix
(c) Product Mix
(d) Place Mix - The Branding Strategy which uses a different brand name for each product is known as
(a) Family Branding
(b) Multiple Branding
(c) Individual Branding
(d) Brand Extension - Statements I: All trademarks are brands.
Statements II: All Brands are not trademarks.
Codes:
(a) Statements I is true and Statements II is false
(b) Statements I is true and Statements II is true
(c) Statements I is false and Statements II is false
(d) Statements I is false and Statements II is true - Cognitive dissonance is associated with which stage of consumer buying decision process?
(a) Need recognition
(b) Information search
(c) Evaluation of alternative
(d) Post purchase behavior - Marketing Myopia concept was developed by
(a) Philip Kotler
(b) Peter Drucker
(c) Theodore Levit
(d) C.K.Prahlad - The number of products lines a company carries is called
(a) Product variation
(b) Product mix width
(c) Product mix depth
(d) Product mix length - The copyright will pass on to his personal representative as part of estate if such person dies………….
(a) Testamentary disposition (through Will)
(b) Through assignment
(c) By Operation of law
(d) Intestate (without making Will) - Contracts made before war with an alien enemy. Which are against public policy, are
(a) Suspended and are revived after the war is over.
(b) Dissolved.
(c) Not affected at all.
(d) Void ab initio. - Quantum Meruit means
(a) A non gratuitous promise
(b) An implied promise.
(c) As much as is earned.
(d) As much as is paid. - The right of subrogation in a contract of guarantee is available to the
(a) Creditor
(b) Principle Debtor
(c) Indemnifier
(d) Surety - The right of lien exercised by and unpaid seller is to
(a) Recover price and other charges.
(b) Claim damages.
(c) Regain possession.
(d) Retain possession. - If life or liberty of any person is involved, the public information Officer is expected to reply
(a) Within 30 days of receipt.
(b) Within 45 days of receipt.
(c) Within 48 hours of receipt.
(d) Within 35 days of receipt. - Which of the following is an offence for dishonor of a cheque?
(a) Cheque given by way of donation to charitable trust
(b) Cheque given in gift
(c) Cheque not presented within the validity period
(d) Cheque issued in discharge of legally enforceable financial liability . - Which of the following is covered under GST?
(a) Cooking gas
(b) Liquor
(c) Petrol
(d) Food bill in an AC restaurant - Which of the following does not raise the presumption of undue influence?
(a) Parents and Child
(b) Landlord and Tenant
(c) Finance and Finance
(d) Doctor and Patient - What is India’s ranking in FDI Confidence Idex 2019?
(a) 4th
(b) 17th
(c) 21st
(d) 16th - The administration of direct taxes is looked after by the
(a) Central Bank of Direct Taxes
(b) Ministry of Finance
(c) Ministry of Corporate Affairs
(d) Income Tax Department - Which of the following is not tax planning?
(a) Payment of Life Insurance Premium to avail deduction u/s 80C
(b) Short-term Capital Gain on Sale of shares not shown in return
(c) Exemption claimed u/s 10(15) in respect of Post Office Savings Deposit
(d) Investment in 100% tax free Govt. Bond - Which of the following is treated as an Agricultural Income as per the Indian Income Tax Act?
(a) Income on sale of skill cocoons obtained from assessee’s growing mulberry leaves
(b) Income derived from sapling or seeding grown in a nursery
(c) Income from fisheries
(d) Income from dairy farming - Mr. Singh received net salary of Rs. 1,00,000 after deducting 10% of basic salary as contribution to Recognized Provident Fund (RPF), deduction of tax at source (TDS) of Rs. 9,000 and repayment of loan of Rs. 36,000. His basic salary is
(a) Rs. 1,00,000
(b) Rs. 1,50,000
(c) Rs. 1,60,000
(d) Rs. 1,20,000 - A college teacher receivers fees from the University of Calcutta (the college is affiliated to Calcutta University) for checking answer sheets of examinations. Such receipts shall taxable under the head of-
(a) Income from Salary
(b) Income From other sources
(c) Income from Profession
(d) Exempted Income - Notional Income is charged on-
(a) Income from salary
(b) Income from other sources
(c) Income from house property
(d) Capital Gain - Which of the following is not an investment based deduction under chapter VIA of Income tax Act?
(a) 80C
(b) 80D
(c) 80G
(d) 80U - Expenditure by employer on promotion of family planning among employees is allowable expenses u/s 36(1) (ix) under the head of ‘Profits & Gains from Business and profession’ for the following assessee:
(a) Individual Only
(b) Company Only
(c) Partnership firm only
(d) Individual and company only - Which of the following expenditure is not allowed under the head ‘Profits & Gains form Business and profession?
(a) Litigation expenses in protecting the trade or business
(b) Diwali expenses incurred for maintaining good relations with the employees
(c) Commission paid to selling agent
(d) Expenses on account of corporate social responsibility - Unabsorbed depreciation can be carried forward for
(a) 8 years
(b) 4years
(c) 10 years
(d) Indefinite PeriodAnswer Key
1 (c) 2 (d) 3 (d) 4 (c) 5 (b) 6 (b) 7 (c) 8 (d) 9 (a) 10 (c) 11 (b) 12 (c) 13 (a) 14 (a) 15 (c) 16 (a) 17 (d) 18 (c) 19 (d) 20 (a) 21 (a) 22 (b) 23 (b) 24 (d) 25 (a) 26 (c) 27 (c) 28 (d) 29 (d) 30 (b) 31 (b) 32 (a) 33 (b) 34 (c) 35 (c) 36 (c) 37 (b) 38 (a) 39 (a) 40 (a) 41 (d) 42 (b) 43 (d) 44 (c) 45 (d) 46 (c) 47 (a) 48 (c) 49 (a) 50 (b) 51 (a) 52 (b) 53 (c) 54 (d) 55 (a) 56 (b) 57 (a) 58 (b) 59 (d) 60 (d) 61 (c) 62 (a) 63 (b) 64 (b) 65 (d) 66 (d) 67 (d) 68 (b) 69 (c) 70 (c) 71 (c) 72 (c) 73 (d) 74 (a) 75 (b) 76 (c) 77 (b) 78 (d) 79 (c) 80 (b) 81 (d) 82 (b) 83 (c) 84 (d) 85 (d) 86 (c) 87 (d) 88 (d) 89 (b) 90 (d) 91 (a) 92 (b) 93 (b) 94 (c) 95 (b) 96 (c) 97 (d) 98 (b) 99 (d) 100 (d)