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|Commerce · September 2022

UGC NET Commerce September 2022 Question PaperPaper 1 & Paper 2 with Answer Key

The complete UGC NET September 2022 question paper for Commerce, covering Paper 1 (General Aptitude) and Paper 2 (Commerce). Every question below is shown with its options and the correct answer, and a detailed explanation you can unlock by signing in. All 300 questions are free to practise.

UGC NET September 2022 at a glance

Exam	UGC NET September 2022
Papers	Paper 1 (General Aptitude) and Paper 2 (Commerce)
Exam date(s)	September 29, 2022
Shift(s)	Shift 1 · Shift 2
Paper 1 questions	100 questions · 60 minutes · 100 marks
Paper 2 questions	200 questions · 120 minutes · 200 marks
Total	300 questions
Marking scheme	+2 per correct answer · No negative marking

Paper 1

General Aptitude

UGC NET September 2022 · Shift 1 · Commerce sitting

50 questions60 min100 marks

Practice Now

Paper 2

Commerce

UGC NET September 2022 · Shift 1

100 questions120 min200 marks

Practice Now

Paper 1

General Aptitude

UGC NET September 2022 · Shift 2 · Commerce sitting

50 questions60 min100 marks

Practice Now

Paper 2

Commerce

UGC NET September 2022 · Shift 2

100 questions120 min200 marks

Practice Now

Paper 1 — General Aptitude · Shift 1

Attempt this paper

50 questions with the answer key and explanations.

Question 1
What is difference in the number of 35AH batteries sold in 2016 and 2020?
Based on the data in the table, answer the five questions that follow:

The following table gives the sale figures of five different types of batteries (in thousands) sold by a company during the years 2015 to 2021.

Year-wise Sale of Batteries

Year 4AH 7AH 32AH 35AH 55AH
2015 75 144 114 102 108
2016 90 126 102 84 126
2017 96 114 75 105 135
2018 105 90 150 90 75
2019 90 75 135 75 90
2020 105 60 165 45 120
2021 115 85 160 100 145
1. A24000
2. B28000
3. C35000
4. D39000
Answer: (D) 39000
Explanation
The difference is 39000 batteries.

From the table, the sales of 35AH batteries were:

Sales in 2016 = 84 thousand = 84000

Sales in 2020 = 45 thousand = 45000

Difference = 84000 - 45000 = 39000 batteries.

Option (A) (24000) — incorrect.

Option (B) (28000) — incorrect.

Option (C) (35000) — incorrect.

Option (D) (39000) — correct. It matches the exact subtraction of 84000 minus 45000.
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Question 2
What was the approximate percentage increase in the sales of 55AH batteries in 2021 compared to that in 2015?
Based on the data in the table, answer the five questions that follow:

The following table gives the sale figures of five different types of batteries (in thousands) sold by a company during the years 2015 to 2021.

Year-wise Sale of Batteries

Year 4AH 7AH 32AH 35AH 55AH
2015 75 144 114 102 108
2016 90 126 102 84 126
2017 96 114 75 105 135
2018 105 90 150 90 75
2019 90 75 135 75 90
2020 105 60 165 45 120
2021 115 85 160 100 145
1. A28%
2. B31%
3. C33%
4. D34%
Answer: (D) 34%
Explanation
The approximate percentage increase is 34%.

From the table, sales of 55AH batteries were:

Sales in 2015 = 108 thousand

Sales in 2021 = 145 thousand

Absolute increase = 145 - 108 = 37 thousand.

Percentage increase:
(37 / 108) * 100 ≈ 34.26%

This rounds approximately to 34%.

Option (A) (28%) — incorrect.

Option (B) (31%) — incorrect.

Option (C) (33%) — incorrect.

Option (D) (34%) — correct. It accurately represents the 34.26% relative increase over 2015 sales.
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Question 3
In case of which type of battery there was a continuous decrease in sales from 2015 to 2020?
Based on the data in the table, answer the five questions that follow:

The following table gives the sale figures of five different types of batteries (in thousands) sold by a company during the years 2015 to 2021.

Year-wise Sale of Batteries

Year 4AH 7AH 32AH 35AH 55AH
2015 75 144 114 102 108
2016 90 126 102 84 126
2017 96 114 75 105 135
2018 105 90 150 90 75
2019 90 75 135 75 90
2020 105 60 165 45 120
2021 115 85 160 100 145
1. A4AH
2. B7AH
3. C32AH
4. D35AH
Answer: (B) 7AH
Explanation
Sales of 7AH batteries decreased continuously each year from 2015 to 2020.

Tracing the sales figures year-by-year from 2015 to 2020:

7AH: 144 → 126 → 114 → 90 → 75 → 60. Every single year shows a strictly lower sale than the preceding year.

4AH: 75 → 90 → 96 → 105 → 90 → 105. Sales increased in several years such as 2016 and 2020.

32AH: 114 → 102 → 75 → 150 → 135 → 165. Sales rose sharply in 2018.

35AH: 102 → 84 → 105 → 90 → 75 → 45. Sales rose from 84 to 105 in 2017.

Option (A) (4AH) — incorrect because sales fluctuated.

Option (B) (7AH) — correct because sales dropped consistently without any year of increase.

Option (C) (32AH) — incorrect because sales rose in 2018 and 2020.

Option (D) (35AH) — incorrect because sales increased between 2016 and 2017.
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Question 4
The percentage of 4AH batteries sold in a given year to the total number of batteries sold in that same year was maximum in the year:
Based on the data in the table, answer the five questions that follow:

The following table gives the sale figures of five different types of batteries (in thousands) sold by a company during the years 2015 to 2021.

Year-wise Sale of Batteries

Year 4AH 7AH 32AH 35AH 55AH
2015 75 144 114 102 108
2016 90 126 102 84 126
2017 96 114 75 105 135
2018 105 90 150 90 75
2019 90 75 135 75 90
2020 105 60 165 45 120
2021 115 85 160 100 145
1. A2017
2. B2018
3. C2019
4. D2020
Answer: (D) 2020
Explanation
The share of 4AH batteries was highest in 2020 at approximately 21.21%.

Calculating the total sales and 4AH percentage for each candidate year:

2017: Total = 96 + 114 + 75 + 105 + 135 = 525. Share = (96 / 525) * 100 ≈ 18.29%.

2018: Total = 105 + 90 + 150 + 90 + 75 = 510. Share = (105 / 510) * 100 ≈ 20.59%.

2019: Total = 90 + 75 + 135 + 75 + 90 = 465. Share = (90 / 465) * 100 ≈ 19.35%.

2020: Total = 105 + 60 + 165 + 45 + 120 = 495. Share = (105 / 495) * 100 ≈ 21.21%.

Among all four years, 2020 yielded the highest percentage of 4AH battery sales.

Option (A) (2017) — incorrect at 18.29%.

Option (B) (2018) — incorrect at 20.59%.

Option (C) (2019) — incorrect at 19.35%.

Option (D) (2020) — correct at 21.21%.
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Question 5
The total sales of all the seven years is maximum for which type of battery?
Based on the data in the table, answer the five questions that follow:

The following table gives the sale figures of five different types of batteries (in thousands) sold by a company during the years 2015 to 2021.

Year-wise Sale of Batteries

Year 4AH 7AH 32AH 35AH 55AH
2015 75 144 114 102 108
2016 90 126 102 84 126
2017 96 114 75 105 135
2018 105 90 150 90 75
2019 90 75 135 75 90
2020 105 60 165 45 120
2021 115 85 160 100 145
1. A4AH
2. B7AH
3. C32AH
4. D35AH
Answer: (C) 32AH
Explanation
The 32AH battery type achieved the highest total sales over the seven-year period at 901 thousand batteries.

Summing sales across all seven years (2015 to 2021) for each option:

4AH: 75 + 90 + 96 + 105 + 90 + 105 + 115 = 676 thousand

7AH: 144 + 126 + 114 + 90 + 75 + 60 + 85 = 694 thousand

32AH: 114 + 102 + 75 + 150 + 135 + 165 + 160 = 901 thousand

35AH: 102 + 84 + 105 + 90 + 75 + 45 + 100 = 601 thousand

The 32AH battery clearly leads all other categories in aggregate volume.

Option (A) (4AH) — incorrect with 676 thousand units.

Option (B) (7AH) — incorrect with 694 thousand units.

Option (C) (32AH) — correct with 901 thousand units.

Option (D) (35AH) — incorrect with 601 thousand units.
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Question 6
Assertion (A): According to Classical Indian School of Logic (Nyāya), it is desirable but not necessary to offer an example in a syllogistic argument or inference.

Reason (R): Example shows that there is at least one existent object or case in the world in which the middle and major terms co-exist.

In light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A).
2. BBoth (A) and (R) are correct but (R) is NOT the correct explanation of (A).
3. C(A) is correct but (R) is not correct.
4. D(A) is not correct but (R) is correct.
Answer: (D) (A) is not correct but (R) is correct.
Explanation
In Nyaya epistemology, offering an example (udaharana) is an indispensable, necessary step of the five-membered syllogism (pancha-avayava).

Nyaya inference is both deductive and inductive, formal and material. An argument must provide a concrete empirical instance (udaharana or dristanta, such as the kitchen hearth) demonstrating that the middle term (hetu) and major term (sadhya) actually co-exist in the world, establishing universal concomitance (vyapti). Therefore:

Assertion (A) is not correct because an example is mandatory, not merely optional or desirable.

Reason (R) is correct because the epistemological role of the example is precisely to prove at least one real-world case where middle and major terms co-exist.

Option (A) — incorrect because Assertion (A) is false.

Option (B) — incorrect because Assertion (A) is false.

Option (C) — incorrect because Assertion (A) is false.

Option (D) — correct because Assertion (A) is false while Reason (R) is true.
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Question 7
Which of the following universities is an Institute of Eminence?

Source review note: Source spelling “Gujrat” retained verbatim.
1. ACentral University of Gujrat, Gandhinagar
2. BUniversity of Hyderabad
3. CTezpur University
4. DJamia Millia Islamia
Answer: (B) University of Hyderabad
Explanation
University of Hyderabad was officially awarded the Institute of Eminence (IoE) status by the Government of India in 2019.

The IoE scheme was launched by the Ministry of Education to empower higher educational institutions to attain world-class academic and research standing.

Option (A) Central University of Gujrat, Gandhinagar — incorrect, it has not been designated as an Institute of Eminence.

Option (B) University of Hyderabad — correct, it is one of the select public central universities granted IoE status.

Option (C) Tezpur University — incorrect, it is a central university but lacks IoE designation.

Option (D) Jamia Millia Islamia — incorrect, it is a prominent central university but not part of the IoE cohort.
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Question 8
In Classical Square of Opposition, if 'Some S is P' is given as true then which of the following could be immediately inferred from it?

a. 'Some S is not P' is false
b. 'Some S is not P' is true
c. 'No S is P' is false
d. 'All S is P' is undetermined
e. 'Some S is not P' is undetermined

Choose the correct answer from the options given below:
1. A(a), (c) and (d) only
2. B(c), (d) and (e) only
3. C(b), (c) and (d) only
4. D(b) and (c) only
Answer: (B) (c), (d) and (e) only
Explanation
When the particular affirmative proposition 'Some S is P' (I proposition) is true, immediate inference yields (c), (d), and (e).

According to the rules of the Classical Square of Opposition:

Contradictory relationship: The I proposition ('Some S is P') and E proposition ('No S is P') are contradictories. If I is true, E must be false, making statement (c) valid.

Subalternation relationship: Truth does not travel upward from particular to universal. If I is true, the universal affirmative A ('All S is P') is undetermined, making statement (d) valid.

Subcontrary relationship: The I proposition and O proposition ('Some S is not P') are subcontraries. Both can be true together, but they cannot both be false. Knowing that I is true leaves O undetermined, making statement (e) valid.

Option (A) — incorrect because statement (a) claims O is false, which is not guaranteed.

Option (B) — correct because statements (c), (d), and (e) follow immediately and correctly.

Option (C) — incorrect because statement (b) claims O is definitely true, whereas it remains undetermined.

Option (D) — incorrect because it omits valid inference (d) and incorrectly assumes (b) is true.
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Question 9
The advantages of research based on field experiments are:

a. A strong external validity
b. Subjects behave normally and naturally
c. The experiment takes place in a natural setting
d. Generation of primary data
e. Non-requirement of elaborate logistics

Choose the correct answer from the options given below:
1. A(a), (b) and (c) only
2. B(b), (c) and (d) only
3. C(c), (d) and (e) only
4. D(a), (c) and (e) only
Answer: (B) (b), (c) and (d) only
Explanation
Field experiments combine experimental manipulation with real-world settings, making statements (b), (c), and (d) primary advantages.

Key characteristics of field experiments include:

Subjects behave normally and naturally (b): Because participants remain in their routine daily environment, artificial observation reactivity is minimized.

Natural setting (c): Unlike artificial laboratory setups, the intervention happens in an authentic social or physical environment.

Generation of primary data (d): Researchers gather first-hand empirical data tailored directly to the study objectives.

Logistics (e): Field research requires extensive permissions, travel, monitoring, and substantial administrative logistics, so claim (e) is false.

Option (A) — incorrect because it omits the generation of primary data and groups external validity without (d).

Option (B) — correct because statements (b), (c), and (d) accurately capture the foundational strengths of field experiments.

Option (C) — incorrect because statement (e) is false.

Option (D) — incorrect because statement (e) is false.
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Question 10
Match List I with List II:
List I (Concept of presentation) List II (Characteristic)
(a) Text (I) Order of signification
(b) Discourse (II) Subjective invention
(c) Connotation (III) Micro data
(d) Myth (IV) Macro exchange
1. A(a)-(I), (b)-(II), (c)-(III), (d)-(IV)
2. B(a)-(II), (b)-(III), (c)-(IV), (d)-(I)
3. C(a)-(III), (b)-(IV), (c)-(I), (d)-(II)
4. D(a)-(IV), (b)-(I), (c)-(II), (d)-(III)
Answer: (C) (a)-(III), (b)-(IV), (c)-(I), (d)-(II)
Explanation
In semiotic and cultural communication analysis, presentation concepts map to their structural characteristics:

(a)-(III), (b)-(IV), (c)-(I), (d)-(II)

(a) Text — (III) Micro data: A text represents an individual, discrete symbolic artifact or specific set of micro signs.

(b) Discourse — (IV) Macro exchange: Discourse constitutes the broader institutional and societal exchange of meanings across culture.

(c) Connotation — (I) Order of signification: In Barthesian semiotics, connotation forms the second order of signification built upon basic denotation.

(d) Myth — (II) Subjective invention: Cultural myth is an ideological construct or subjective narrative that makes historical meanings appear natural.

Option (A) — incorrect mapping.

Option (B) — incorrect mapping.

Option (C) — correct. It accurately connects each presentation concept with its analytical characteristic.

Option (D) — incorrect mapping.
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Question 11
Upon completion of academic programmes (Graduation), what outcomes should the students have attained?
1. AProgramme Education Objectives/ Programme outcomes
2. BLesson outcomes
3. CCourse outcomes
4. DUnit/Chapter outcomes
Answer: (A) Programme Education Objectives/ Programme outcomes
Explanation
Students graduating from an entire academic programme are expected to attain Programme Outcomes (POs) and Programme Educational Objectives (PEOs).

Outcome-Based Education (OBE) defines a hierarchical structure of educational outcomes:

Unit/Chapter outcomes: Mastered at the end of specific instructional topics or chapters.

Lesson outcomes: Mastered at the completion of a single lecture or lesson plan.

Course outcomes (COs): Attained upon completing a specific subject or course within the curriculum.

Programme outcomes (POs): Broad graduate attributes attained across the entire degree or programme of study.

Option (A) — correct because graduation marks the completion of the full academic programme.

Option (B) — incorrect because lesson outcomes apply to single class periods.

Option (C) — incorrect because course outcomes apply to individual subjects.

Option (D) — incorrect because unit outcomes apply to modular subunits.
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Question 12
An American is told by his friend that Asian buffalo is like bison in such and such respects. When the American visits Asia and comes across a buffalo, he comes to know that the animal seen by him is buffalo. Which of the following means of knowledge (pramāna) is used in this instance?
1. APostulation (Arthapatti)
2. BComparison (Upamana)
3. CPerception (Pratyakşa)
4. DVerbal Testimony (Śabda)
Answer: (B) Comparison (Upamana)
Explanation
The scenario represents Comparison (Upamana), the means of valid knowledge derived from similarity or analogy.

In classical Nyaya epistemology:

Upamana is defined as the knowledge of the relation between a name and an object (samjna-samjni-sambandha) established by perceiving similarity to a known object.

The textbook philosophical paradigm describes a person who has heard that a wild gavaya resembles a cow, sees a gavaya in the forest, notices the resemblance, and recognizes it as a gavaya.

Here, recognizing the Asian buffalo through its previously described similarity to a bison is an exact modern equivalent of Upamana.

Option (A) Postulation (Arthapatti) — incorrect, this involves presuming an unperceived fact to explain an apparent conflict.

Option (B) Comparison (Upamana) — correct, it directly applies recognition through perceived analogical resemblance.

Option (C) Perception (Pratyaksa) — incorrect because the naming depends crucially on the prior analogical description.

Option (D) Verbal Testimony (Sabda) — incorrect because while testimony provided the description, the actual recognition of the object in the field is completed via Upamana.
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Question 13
Six persons went to a hotel for a dinner, Five of them spent Rs 150 each on their meals, while the sixth person spent Rs 80 more than the average expenditure of all the six persons. What is the total money spent by all the six persons?
1. A996
2. B999
3. C1000
4. D1001
Answer: (A) 996
Explanation
The total expenditure of all six persons is Rs 996.

Let $A$ represent the average expenditure of all six persons.
Total expenditure of the group = 6A.

Expenditure breakdown:

First five persons spent: 5 * 150 = 750

Sixth person spent: A + 80

Equating the total sum to 6A:
750 + (A + 80) = 6A
830 + A = 6A
5A = 830
A = 166

Total money spent:
6 * 166 = 996

Option (A) (996) — correct.

Option (B) (999) — incorrect.

Option (C) (1000) — incorrect.

Option (D) (1001) — incorrect.
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Question 14
In order to develop a video for MOOC, how much portion of some copyrighted video is allowed to be used as per the fair use guidelines?
1. AUp to 10% or 10 minutes, whichever is less.
2. BUp to 10% or 3 minutes, whichever is less.
3. CUp to 20% or 10 minutes, whichever is less.
4. DUp to 30% or 3 minutes, whichever is less
Answer: (B) Up to 10% or 3 minutes, whichever is less.
Explanation
Under educational fair use guidelines for educational multimedia development, creators may incorporate motion media up to 10% or 3 minutes, whichever is less.

Key fair use quantitative limits for multimedia educational resources specify:

Motion media: Up to 10% or 3 minutes, whichever is less, in aggregate from a copyrighted motion work.

Text material: Up to 10% or 1000 words, whichever is less.

Music / audio: Up to 10% or 30 seconds, whichever is less.

Option (A) — incorrect because the cap is 3 minutes, not 10 minutes.

Option (B) — correct because it strictly observes the standard 10% or 3-minute threshold.

Option (C) — incorrect because neither 20% nor 10 minutes applies to video excerpts.

Option (D) — incorrect because 30% exceeds permitted educational thresholds.
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Question 15
A Company's word-processed daily report contains a graph from a spreadsheet. The report needs to display the most recent information from the spreadsheet. What feature should be used to insert the most up-to-date graph?
1. ACopy and paste
2. BMail merge wizard
3. CAutomated importing
4. DLinking and embedding
Answer: (D) Linking and embedding
Explanation
Object Linking and Embedding (OLE) allows a document to reference an external file so changes in the source spreadsheet update automatically in the destination report.

Linking: The word processing document stores a dynamic pointer to the source spreadsheet rather than a static duplicate. Whenever the spreadsheet data is updated, the embedded graph refreshes seamlessly.

Copy and paste (A) creates a static snapshot that will not reflect subsequent data changes.

Mail merge wizard (B) is designed for mass document generation with personal variables, not dynamic chart updates.

Automated importing (C) is a non-standard application feature rather than the core operating-system linking mechanism.

Option (A) — incorrect because standard paste creates an unlinked static image.

Option (B) — incorrect because mail merge is used for form letters and labels.

Option (C) — incorrect because it is not the standard office suite feature.

Option (D) — correct because linking establishes live data synchronization between the spreadsheet and the report.
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Question 16
Which of the following model is used for development of e-content for MOOCs on SWAYAM?
1. AFour Quadrant
2. BTwo Quadrant
3. CFlipped Classroom
4. DBloom's Taxonomy
Answer: (A) Four Quadrant
Explanation
E-content for MOOCs hosted on the SWAYAM platform is standardized on the Four Quadrant pedagogical approach.

The four quadrants mandated by the Ministry of Education and UGC are:

Quadrant-I (e-Tutorial): High quality audio and video lectures, simulations, and virtual demonstrations.

Quadrant-II (e-Content): Self-instructional material, eBooks, illustrations, and downloadable documents.

Quadrant-III (Web Resources): Supplementary reading lists, open source links, and historical references.

Quadrant-IV (Self-Assessment): Assessment quizzes, multiple-choice questions, problem sets, and discussion forum prompts.

Option (A) — correct because SWAYAM explicitly structures all online courses across these four quadrants.

Option (B) — incorrect because two quadrants do not cover the complete pedagogical architecture.

Option (C) — incorrect because flipped classroom is a blended delivery method, not the SWAYAM e-content specification.

Option (D) — incorrect because Bloom's Taxonomy is a classification of learning objectives, not an e-content development structure.
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Question 17
According to Noise Pollution (Regulation and Control) Rules in India, noise (LLeeee) in educational institutions during night time (10pm-6am) must not exceed

Source review note: Source renders the noise-level symbol as italic “LL” followed by subscript “eeee”; this visibly malformed notation is preserved without reinterpretation.
1. A35 dB
2. B40 dB
3. C45 dB
4. D50 dB
Answer: (B) 40 dB
Explanation
Under the Noise Pollution (Regulation and Control) Rules, 2000, educational institutions fall under the Silence Zone, where the night-time permissible noise limit is 40 dB(A) Leq.

Permissible ambient noise levels across zones in India:

Silence Zone: 50 dB in day time (6:00 AM to 10:00 PM) and 40 dB in night time (10:00 PM to 6:00 AM).

Residential Zone: 55 dB in day time and 45 dB in night time.

Commercial Zone: 65 dB in day time and 55 dB in night time.

Industrial Zone: 75 dB in day time and 70 dB in night time.

Educational campuses, hospitals, and courts are statutory Silence Zones, establishing 40 dB as the mandatory limit during night hours.

Option (A) (35 dB) — incorrect.

Option (B) (40 dB) — correct as the prescribed night-time silence zone standard.

Option (C) (45 dB) — incorrect, this is the night-time standard for residential areas.

Option (D) (50 dB) — incorrect, this is the day-time standard for silence zones.
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Question 18
A fallacy in which the conclusion is stated or assumed within one of the premises is known severally as:

a. Petitio Principii
b. Irrelevant Conclusion
c. Begging the Question
d. Fallacy of Composition
e. Circular argument

Choose the correct answer from the options given below:
1. A(a), (d) and (e) only
2. B(c) and (d) only
3. C(b), (c) and (e) only
4. D(a), (c) and (e) only
Answer: (D) (a), (c) and (e) only
Explanation
Assuming the conclusion within one of the premises defines the circular reasoning fallacy, known interchangeably as Petitio Principii, Begging the Question, and Circular argument.

Petitio Principii (a): The classical Latin term for 'begging the initial question'.

Begging the Question (c): The standard English term for assuming what needs to be proved.

Circular argument (e): The descriptive phrase for reasoning that begins where it ends.

Irrelevant Conclusion (b): Also known as Ignoratio Elenchi, where an argument fails to address the actual issue.

Fallacy of Composition (d): Erroneously reasoning that the whole must have the properties of its individual parts.

Option (A) — incorrect because it includes Fallacy of Composition (d).

Option (B) — incorrect because it includes Fallacy of Composition (d) and omits (a) and (e).

Option (C) — incorrect because it includes Irrelevant Conclusion (b).

Option (D) — correct because (a), (c), and (e) are synonymous designations for this logical fallacy.
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Question 19
What is the correct chronological order of sequence from older to newer of the following agreement, summit and protocols?

a. Paris Agreement
b. Montreal Protocol
c. Kyoto Protocol
d. Rio Summit

Choose the correct answer from the options given below:
1. A(a), (b), (c), (d)
2. B(b), (d), (c), (a)
3. C(a), (c), (d), (b)
4. D(b), (c), (d), (a)
Answer: (B) (b), (d), (c), (a)
Explanation
The correct historical chronological order from oldest to newest is:

b → d → c → a

(b) Montreal Protocol: Adopted in 1987 to phase out ozone-depleting substances.

(d) Rio Summit (Earth Summit): Held in Rio de Janeiro in 1992, establishing Agenda 21 and the UNFCCC.

(c) Kyoto Protocol: Adopted in 1997 to establish legally binding greenhouse gas emissions reductions.

(a) Paris Agreement: Adopted at COP21 in 2015 to limit global temperature rise well below 2 degrees Celsius.

Option (A) — incorrect chronological order.

Option (B) — correct because 1987 precedes 1992, 1997, and 2015.

Option (C) — incorrect chronological order.

Option (D) — incorrect because Rio Summit (1992) took place before Kyoto Protocol (1997).
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Question 20
Environmental education encompasses the issues of

a. Resource Consumption
b. Environmental degradation
c. Biodiversity loss
d. Economic empowerment
e. Climate change and its impact

Choose the correct answer from the options given below:
1. A(a), (b), (c) and (d) only
2. B(a), (b), (c) and (e) only
3. C(b), (c), (d) and (e) only
4. D(b) and (e) only
Answer: (B) (a), (b), (c) and (e) only
Explanation
Environmental education centers on ecological challenges and ecological balance, including resource consumption, environmental degradation, biodiversity loss, and climate change.

Core focal areas of environmental education:

Resource Consumption (a): Understanding sustainable utilization and exhaustion of natural assets.

Environmental degradation (b): Examining air, water, and soil pollution.

Biodiversity loss (c): Addressing ecosystem destruction and endangered species extinction.

Climate change and its impact (e): Studying greenhouse gas emissions, global warming, and mitigation strategies.

Economic empowerment (d) is an objective of socio-economic and poverty alleviation policies rather than a subject of environmental education.

Option (A) — incorrect because it includes economic empowerment (d).

Option (B) — correct because (a), (b), (c), and (e) represent the direct ecological dimensions of the discipline.

Option (C) — incorrect because it includes economic empowerment (d).

Option (D) — incorrect because it unduly excludes resource consumption and biodiversity loss.
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Question 21
Which of the following peripheral devices are considered as only input devices?

a. Microphone
b. Projector
c. Joy Stick
d. Scanner
e. Track-ball

Choose the correct answer from the options given below:
1. A(a), (c), (d) and (e) only
2. B(a), (b), (d) and (e) only
3. C(b), (c), (d) and (e) only
4. D(a), (b), (c) and (d) only
Answer: (A) (a), (c), (d) and (e) only
Explanation
Microphone, joystick, scanner, and track-ball are dedicated input devices, while a projector is an output device.

Device classification:

Microphone (a): Audio input transducer converting sound waves into electrical audio signals.

Projector (b): Visual output device that projects computer displays onto a projection screen or wall.

Joy Stick (c): Input pointing control used primarily for simulations and gaming navigation.

Scanner (d): Optical input device digitizing physical documents and photographs.

Track-ball (e): Input pointing peripheral with a movable sphere to direct screen pointers.

Option (A) — correct because (a), (c), (d), and (e) function exclusively to feed data into a computer system.

Option (B) — incorrect because it includes projector, an output device.

Option (C) — incorrect because it includes projector, an output device.

Option (D) — incorrect because it includes projector, an output device.
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Question 22
Hypothesis, that is alternative to null hypothesis, is represented as

Source review note: Option A is displayed as H with subscript “00”, and option D as H with subscript “≠0” — source notation retained verbatim.
1. AH₀₀
2. BH₁
3. CHₐₗₜ
4. DH≠0
Answer: (B) H₁
Explanation
In scientific research and statistical inference, the alternative hypothesis is conventionally denoted by H₁.

The null hypothesis, asserting no significant difference or effect, is symbolized as H₀.

The alternative hypothesis, asserting the presence of a real effect or relationship, is denoted as H₁ (or Hₐ).

Notations like H₀₀, Hₐₗₜ, or H≠0 are non-standard typographical formulations.

Option (A) — incorrect notation.

Option (B) — correct as the universally accepted standard notation for the alternative hypothesis.

Option (C) — incorrect informal abbreviation.

Option (D) — incorrect expression.
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Question 23
Unscramble the strings below to create a meaningful word and then find the odd one out:

a. EIWNTR
b. UMRSME
c. PIGRSN
d. LCUOD

Choose the correct answer from the options given below:
1. A(a) only
2. B(b) only
3. C(c) only
4. D(d) only
Answer: (D) (d) only
Explanation
Unscrambling the given letters reveals three seasons of the year and one weather element:

a. EIWNTR → WINTER (season)

b. UMRSME → SUMMER (season)

c. PIGRSN → SPRING (season)

d. LCUOD → CLOUD (weather element)

Winter, Summer, and Spring belong to the category of seasons, making CLOUD the odd one out.

Option (A) — incorrect because Winter is one of the three seasons.

Option (B) — incorrect because Summer is one of the three seasons.

Option (C) — incorrect because Spring is one of the three seasons.

Option (D) — correct because Cloud is an atmospheric feature rather than a calendar season.
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Question 24
Which type of virus or destructive software could appear to be useful, but will actually cause damage once installed or run by a user?
1. AHoax
2. BWorm
3. CTrojan Horse
4. DSystem Sector
Answer: (C) Trojan Horse
Explanation
A Trojan Horse is malicious software that disguises itself as legitimate or beneficial software to trick users into executing it.

Malware categories:

Trojan Horse: Masquerades as a routine utility, game, or software patch. Once launched, it triggers hidden destructive actions or opens backdoor security exploits.

Worm: A standalone self-replicating malware program that spreads across computer networks without requiring host programs or user execution.

Hoax: An untrue warning or deceptive email rumor about non-existent viruses, causing panic rather than direct program damage.

System Sector (Boot Sector) virus: Infects master boot records and partition tables to execute during system startup.

Option (A) — incorrect because a hoax is an untrue warning, not an executable destructive program.

Option (B) — incorrect because worms propagate autonomously without pretending to be useful programs.

Option (C) — correct because masquerading as useful software is the classic signature of a Trojan Horse.

Option (D) — incorrect because boot sector viruses target disk startup sectors directly.
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Question 25
Assertion (A): Static RAM is typically used for PC's main memory while Dynamic RAM is used for CPU cache

Reason (R): Static RAM is faster and more expensive than Dynamic RAM.

In light of the above statements, choose the most appropriate answer from the options given below:

Source review note: Assertion wording is retained verbatim; no technical correction has been applied.
1. ABoth (A) and (R) are true and (R) is the correct explanation of (A).
2. BBoth (A) and (R) are true but (R) is NOT the correct explanation of (A).
3. C(A) is true but (R) is false.
4. D(A) is false but (R) is true.
Answer: (D) (A) is false but (R) is true.
Explanation
Assertion (A) reverses the roles of Static RAM and Dynamic RAM, while Reason (R) correctly describes their performance and cost differences.

Assertion (A) is false: Dynamic RAM (DRAM) is used for a PC's main system memory because of its high storage density and low cost. Static RAM (SRAM) is used for CPU cache memory because of its high speed.

Reason (R) is true: SRAM uses flip-flop circuits (typically six transistors per bit) that do not require periodic refreshing, making it much faster and more expensive than DRAM (which uses a single transistor and capacitor per bit).

Option (A) — incorrect because Assertion (A) is false.

Option (B) — incorrect because Assertion (A) is false.

Option (C) — incorrect because Assertion (A) is false.

Option (D) — correct because Assertion (A) is false while Reason (R) is true.
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Question 26
Which of the following are barriers to understand the communicated messages?

a. Emotional quotient
b. Jargon
c. Personal space
d. Pre-judgement
e. Cultural background

Choose the correct answer from the options given below:
1. A(a), (b) and (c) only
2. B(b), (d) and (e) only
3. C(c), (d) and (e) only
4. D(b), (c) and (d) only
Answer: (B) (b), (d) and (e) only
Explanation
Jargon, pre-judgement, and cultural background represent key barriers that impede the accurate understanding of communicated messages.

Jargon (b): Technical or specialized vocabulary creates semantic barriers for receivers unfamiliar with industry-specific terminology.

Pre-judgement (d): Preconceived biases, stereotyping, and defensive mindsets form psychological barriers that distort incoming messages.

Cultural background (e): Differing cultural norms, values, and contextual framing can lead to misinterpretation of symbols and intent.

Emotional quotient (a): High emotional intelligence facilitates empathetic decoding rather than obstructing communication.

Personal space (c): Proxemics influences comfort, but between the choices, (b), (d), and (e) represent the primary perceptual, linguistic, and cultural filters.

Option (A) — incorrect because emotional quotient is not an inherent communication barrier.

Option (B) — correct because jargon, pre-judgement, and cultural divergence are recognized communication barriers.

Option (C) — incorrect because it omits jargon and pre-judgement.

Option (D) — incorrect because it omits cultural background.
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Question 27
What is SCOPUS?
1. ASoftware to prepare Ph.D thesis
2. BDatabase containing abstracts and citations of academic journals
3. CAgency to fund research and development
4. DPlagiarism checking software
Answer: (B) Database containing abstracts and citations of academic journals
Explanation
Scopus is a comprehensive abstract and citation database of peer-reviewed literature launched by Elsevier in 2004.

It indexes thousands of academic journals, book series, conference proceedings, and trade publications across the sciences, social sciences, arts, and humanities, providing citation tracking and bibliometric tools.

Option (A) — incorrect, referencing thesis drafting tools like LaTeX or EndNote.

Option (B) — correct, Scopus is globally recognized as an authoritative abstract and indexing citation database.

Option (C) — incorrect, Scopus is an indexing platform, not a funding agency.

Option (D) — incorrect, plagiarism detection tools include Turnitin and Urkund.
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Question 28
The Social Science research which is data-based, has been associated with
1. AAuthoritarian mode
2. BPositivist philosophy
3. CNetwork theory
4. DPhenomenology
Answer: (B) Positivist philosophy
Explanation
Empirical, data-based quantitative social science research is rooted in Positivist philosophy.

Positivism asserts that the social world can be studied using the objective, scientific, and quantifiable methods of the natural sciences, focusing on measurable facts, statistical data, and causal relationships.

Option (A) Authoritarian mode — incorrect, this is a governance style rather than an epistemology.

Option (B) Positivist philosophy — correct because positivism demands empirical observation and quantifiable data.

Option (C) Network theory — incorrect, this is an analytical framework for mapping structural relations rather than an overarching epistemology.

Option (D) Phenomenology — incorrect, phenomenology is an interpretivist, qualitative paradigm focusing on lived subjective experience rather than numerical data.
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Question 29
When the subjects of a research change or improve their behaviour, not due to changes in experimental stimulus, it is called
1. AThe Hawthorne effects
2. BThe Glenn effects
3. CThe Fischer effects
4. DThe Kerlinger effect
Answer: (A) The Hawthorne effects
Explanation
The Hawthorne effect occurs when research participants modify their behavior simply because they know they are being observed, rather than in response to any experimental treatment.

Originally identified during productivity studies at Western Electric's Hawthorne Works (1924–1932), it represents a major threat to experimental internal validity due to participant reactivity.

Option (A) The Hawthorne effects — correct as the standard term for behavioral changes caused by awareness of being studied.

Option (B) The Glenn effects — incorrect, non-existent psychological term.

Option (C) The Fischer effects — incorrect, the Fisher effect is an economic theory relating nominal interest rates to inflation.

Option (D) The Kerlinger effect — incorrect, Fred Kerlinger is known for research design texts, not this effect.
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Question 30
The selling price of 30 fans is equal to the purchase price of 25 fans. What is the profit or loss in percentage?
1. AA gain of 16 ⅔%
2. BA loss of 15%
3. CA loss of 16 ⅔%
4. DNo gain, no loss
Answer: (C) A loss of 16 ⅔%
Explanation
The transaction results in a loss of 16 ⅔%.

Let CP be the cost price of one fan and SP be the selling price of one fan.
Given:
30 * SP = 25 * CP
SP / CP = 25 / 30 = 5 / 6

Since SP is less than CP, there is a financial loss.

Loss per unit:
CP - SP = CP - (5 / 6) * CP = (1 / 6) * CP

Loss percentage:
((1 / 6) * CP / CP) * 100 = 100 / 6 = 16 ⅔%

Option (A) — incorrect, it represents a gain instead of a loss.

Option (B) — incorrect calculation.

Option (C) — correct as the loss is exactly 16 ⅔%.

Option (D) — incorrect, a clear loss is incurred.
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Question 31
In a state government university or Central University, recommendation of the Selection Committee for the recruitment of the faculty is approved by the
1. AAcademic Council
2. BExecutive Council
3. CFinance Committee
4. DChancellor of University
Answer: (B) Executive Council
Explanation
In Indian central and state universities, faculty appointments recommended by the Selection Committee must be formally approved by the Executive Council (or Syndicate).

The Executive Council is the highest executive authority of the university, vested with powers over administration, appointments, and service conditions.

The Academic Council oversees academic regulations, syllabi, and examinations, but does not approve statutory faculty appointments.

The Finance Committee manages annual budgets and financial accounts.

The Chancellor occupies a titular/visitor position and does not handle routine selection committee clearances.

Option (A) — incorrect because Academic Council handles curriculum matters.

Option (B) — correct because the Executive Council is the appointing authority for university faculty.

Option (C) — incorrect because Finance Committee manages fiscal resources.

Option (D) — incorrect because the Chancellor does not review individual faculty selections.
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Question 32
The modern communication revolution is propelled by
1. ACold war propaganda
2. BInternational commerce
3. CTechnological convergence
4. DChange in political systems
Answer: (C) Technological convergence
Explanation
Technological convergence is the primary driving force behind the modern communication revolution.

Convergence merges previously distinct telecommunications, computing, and media industries into unified digital platforms and networks, transforming how information is created, stored, transmitted, and consumed globally.

Option (A) — incorrect, cold war propaganda belonged to earlier 20th-century media eras.

Option (B) — incorrect, while commerce benefits from communication, technology is the fundamental driver.

Option (C) — correct, technological convergence creates the unified digital infrastructure that defines modern communication.

Option (D) — incorrect, political shifts adapt to communication technology rather than originating it.
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Question 33
Effective classroom communication will enable

a. Efficient teaching
b. Interest in learning
c. Minimal assessment
d. Interaction between teachers and students
e. Teacher-centric behaviour

Choose the correct answer from the options given below:
1. A(a), (b) and (c) only
2. B(b), (c), (d) and (e) only
3. C(c), (d) and (e) only
4. D(a), (b) and (d) only
Answer: (D) (a), (b) and (d) only
Explanation
Effective classroom communication enables efficient teaching, sparks interest in learning, and fosters rich teacher-student interaction.

Efficient teaching (a): Clarity of message and structured feedback allow learning goals to be achieved smoothly.

Interest in learning (b): Engaging instructional communication motivates learners and sustains curiosity.

Interaction between teachers and students (d): Dialogue and participatory questioning strengthen comprehension.

Minimal assessment (c) is undesirable because regular assessment is necessary for diagnosing progress.

Teacher-centric behaviour (e) is contrary to modern pedagogy, which prioritizes learner-centric engagement.

Option (A) — incorrect because it includes minimal assessment (c).

Option (B) — incorrect because it includes minimal assessment (c) and teacher-centric behaviour (e).

Option (C) — incorrect because it includes minimal assessment (c) and teacher-centric behaviour (e).

Option (D) — correct because (a), (b), and (d) represent positive outcomes of effective communication.
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Question 34
Which scheme of Ministry of Education, Government of India, uses Artificial Intelligence to make learning more personalised and customised, as per requirements of the learners?
1. ANEAT
2. BNEET
3. CSWAYAM
4. DSWAYAM PRABHA
Answer: (A) NEAT
Explanation
NEAT (National Educational Alliance for Technology) is the Ministry of Education initiative that deploys Artificial Intelligence for customized learning.

Implemented through AICTE under a Public-Private Partnership model, NEAT utilizes AI-driven adaptive learning software developed by EdTech companies to tailor educational pathways to individual student paces and abilities.

Option (A) NEAT — correct as the flagship AI-driven personalized learning scheme.

Option (B) NEET — incorrect, National Eligibility cum Entrance Test is a medical entrance exam.

Option (C) SWAYAM — incorrect, SWAYAM is the national MOOCs portal.

Option (D) SWAYAM PRABHA — incorrect, SWAYAM PRABHA is a consortium of 40 DTH educational TV channels.
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Question 35
Statement I: Knowledge is a form of cultural capital for all practical purposes.

Statement II: Communication media make cultural capital a form of illimitable property.

In light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth Statement (I) and Statement (II) are correct
2. BBoth Statement (I) and Statement (II) are incorrect
3. CStatement (I) is correct but Statement (II) is incorrect
4. DStatement (I) is incorrect but Statement (II) is correct
Answer: (A) Both Statement (I) and Statement (II) are correct
Explanation
Both Statement I and Statement II are correct conceptual statements regarding cultural capital and communication media.

Statement I is correct: Sociologist Pierre Bourdieu established that cultural capital consists of familiarity with cultural codes, knowledge, skills, and academic credentials that grant social power and advantage.

Statement II is correct: Modern communication media and digital networks make cultural capital reproducible and distributable without material exhaustion, rendering it effectively illimitable and non-rivalrous property.

Option (A) — correct because both statements are sound and accurate.

Option (B) — incorrect because neither statement is false.

Option (C) — incorrect because Statement II is true.

Option (D) — incorrect because Statement I is true.
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Question 36
What shall be the value when 0.07 is divided by 350?
1. A0.0002
2. B0.002
3. C0.02
4. D0.00002
Answer: (A) 0.0002
Explanation
Dividing 0.07 by 350 gives 0.0002.

Writing the terms in fractional notation:
0.07 / 350 = 7 / (350 * 100) = 7 / 35000 = 1 / 5000

Converting 1 / 5000 to decimal:
1 / 5000 = (1 * 2) / (5000 * 2) = 2 / 10000 = 0.0002

Option (A) (0.0002) — correct.

Option (B) (0.002) — incorrect, off by a factor of 10.

Option (C) (0.02) — incorrect, off by a factor of 100.

Option (D) (0.00002) — incorrect, off by an extra zero.
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Question 37
The percentage increase in carbon dioxide concentration in atmosphere from pre-industrial times is approximately
1. A55%
2. B50%
3. C74%
4. D62%
Answer: (B) 50%
Explanation
Atmospheric carbon dioxide concentration has increased by approximately 50% since pre-industrial times.

Historical atmospheric baseline data:

Pre-industrial atmospheric CO2 level (around 1750) = approximately 280 parts per million (ppm)

Recent atmospheric CO2 level (around 2021–2022) = approximately 417 to 420 ppm

Increase:
420 - 280 = 140 ppm

Percentage increase:
(140 / 280) * 100 = 50%

Option (A) (55%) — incorrect.

Option (B) (50%) — correct, matching the 50% surge over the 280 ppm baseline.

Option (C) (74%) — incorrect.

Option (D) (62%) — incorrect.
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Question 38
Analogical Argument are:

Source review note: Source grammar “Analogical Argument are:” retained verbatim.
1. ADeductive in nature
2. BInductive in nature
3. CValid arguments but fallacious
4. DInvalid argument
Answer: (B) Inductive in nature
Explanation
Analogical arguments are fundamentally inductive in nature.

In logic, an argument by analogy infers that because two or more things share certain observed properties, they likely share an additional unobserved property. Because the conclusion is probable rather than guaranteed with mathematical certainty, it belongs to the inductive reasoning category.

Option (A) Deductive in nature — incorrect because deduction guarantees the conclusion if premises are true.

Option (B) Inductive in nature — correct because analogical reasoning establishes probable rather than certain conclusions.

Option (C) Valid arguments but fallacious — incorrect, validity is a property of deductive arguments.

Option (D) Invalid argument — incorrect, invalidity applies strictly to deductive forms.
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Question 39
Statement I: The recommendations of the Radhakrishnan Commission in 1949 resemble those of Calcutta University Commission in 1917.

Statement II: The recommendations of the Mudaliar Commission in 1953 resemble those of John Sergent's post-war Educational Development Plan in 1944.

In light of the above statements, choose the most appropriate answer from the options given below:

Source review note: Source spelling “Sergent” retained verbatim.
1. ABoth Statement (I) and Statement (II) are correct
2. BBoth Statement (I) and Statement (II) are incorrect
3. CStatement (I) is correct but Statement (II) is incorrect
4. DStatement (I) is incorrect but Statement (II) is correct
Answer: (A) Both Statement (I) and Statement (II) are correct
Explanation
Both Statement I and Statement II accurately describe historical continuity across major educational commissions in India.

Statement I is correct: The Radhakrishnan Commission (University Education Commission, 1948–49) aligned closely with the earlier Calcutta University Commission (Sadler Commission, 1917–19) on establishing intermediate colleges, postgraduate teaching units, and autonomous higher education governance.

Statement II is correct: The Mudaliar Commission (Secondary Education Commission, 1952–53) incorporated structural blueprints from the Sargent Report (Post-War Educational Development Plan, 1944), particularly the diversification of secondary education into academic and technical streams.

Option (A) — correct because both historical parallels are valid.

Option (B) — incorrect because both statements are true.

Option (C) — incorrect because Statement II is true.

Option (D) — incorrect because Statement I is true.
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Question 40
The highest nonzero dose at which no toxic effect is observed in a study on animals is called
1. ALD₅₀
2. BNOAEL
3. CLOAEL
4. DNOEFF
Answer: (B) NOAEL
Explanation
NOAEL (No Observed Adverse Effect Level) denotes the highest experimental exposure dose at which there is no biologically significant increase in toxic or adverse effects compared to control subjects.

Toxicological benchmarks:

NOAEL: Highest non-zero dose showing no observed adverse effect.

LOAEL (Lowest Observed Adverse Effect Level): Lowest dose tested that induces a detectable adverse effect.

LD₅₀ (Median Lethal Dose): The dose required to kill 50% of the tested animal population.

NOEFF: Non-standard toxicological abbreviation.

Option (A) LD₅₀ — incorrect because it measures mortality, not the safety threshold.

Option (B) NOAEL — correct as the standard toxicological measure of maximum non-toxic exposure.

Option (C) LOAEL — incorrect because adverse effects are observed at this level.

Option (D) NOEFF — incorrect terminology.
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Question 41
Choose the set of numbers, similar to the set (31, 19, 41) out of the following:

a. (27, 29, 47)
b. (23, 34, 49)
c. (29, 16, 41)
d. (29, 17, 37)
e. (23, 37, 49)

Choose the correct answer from the options given below:
1. A(a), (c) and (e) only
2. B(a) and (b) only
3. C(b) and (d) only
4. D(d) only
Answer: (D) (d) only
Explanation
The given set (31, 19, 41) consists entirely of prime numbers.

Evaluating each candidate set for primality:

a. (27, 29, 47): 27 is composite (divisible by 3 and 9).

b. (23, 34, 49): 34 and 49 are composite.

c. (29, 16, 41): 16 is composite.

d. (29, 17, 37): 29, 17, and 37 are all prime numbers.

e. (23, 37, 49): 49 is composite (7 * 7).

Only set (d) shares the defining property of consisting entirely of prime numbers.

Option (A) — incorrect because sets (a), (c), and (e) contain composite numbers.

Option (B) — incorrect because both contain composite numbers.

Option (C) — incorrect because set (b) contains composite numbers.

Option (D) — correct because set (d) alone consists exclusively of prime numbers.
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Question 42
Statement I: With Academic Bank of Credit facility in place, a student will be able to customize and design own degree, provided 50% of credit are from the higher education institutions awarding the degree.

Statement II: Credits once used or redeemed by a student cannot be used for any other formal purpose or course wavers.

In light of the above statements, choose the most appropriate answer from the options given below:

Source review note: Source wording “course wavers” retained verbatim.
1. ABoth Statement (I) and Statement (II) are correct
2. BBoth Statement (I) and Statement (II) are incorrect
3. CStatement (I) is correct but Statement (II) is incorrect
4. DStatement (I) is incorrect but Statement (II) is correct
Answer: (A) Both Statement (I) and Statement (II) are correct
Explanation
Both statements correctly reflect UGC Academic Bank of Credits (ABC) regulations.

Statement I is correct: Under NEP 2020 and UGC ABC regulations, students enjoy multiple entry and exit pathways and flexible credit accumulation, provided at least 50% of the requisite credits are earned from the institution conferring the degree.

Statement II is correct: Credits redeemed for the award of a degree or diploma are locked and cannot be reused toward another formal qualification or course waiver.

Option (A) — correct because both statements represent statutory ABC rules.

Option (B) — incorrect because both statements are valid.

Option (C) — incorrect because Statement II is true.

Option (D) — incorrect because Statement I is true.
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Question 43
Assertion (A): Teachers must encourage students to ask questions.

Reason (R): Asking questions can create curiosity and develop passion for learning.

In light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A).
2. BBoth (A) and (R) are correct but (R) is NOT the correct explanation of (A).
3. C(A) is correct but (R) is not correct.
4. D(A) is not correct but (R) is correct.
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
Explanation
Teachers must encourage questions because active questioning stimulates intellectual curiosity and cultivates a lasting passion for learning.

Assertion (A) is correct: Encouraging students to question promotes critical thinking, active participation, and deep conceptual understanding.

Reason (R) is correct: Questioning sparks cognitive curiosity, shifting learners from passive reception to self-directed exploration.

Furthermore, Reason (R) provides the direct causal pedagogical justification for why teachers should encourage student questioning.

Option (A) — correct because both statements are true and Reason (R) directly explains Assertion (A).

Option (B) — incorrect because Reason (R) directly explains Assertion (A).

Option (C) — incorrect because Reason (R) is true.

Option (D) — incorrect because Assertion (A) is true.
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Question 44
Assertion (A): Hybrid Electric Vehicles' (HEVs) fuel running cost is lesser than Electric Vehicles (EVs).

Reason (R): Hybrid Electric Vehicles have both an internal combustion engine and an onboard electric power generation system.

In light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A).
2. BBoth (A) and (R) are correct but (R) is NOT the correct explanation of (A).
3. C(A) is correct but (R) is not correct.
4. D(A) is not correct but (R) is correct.
Answer: (D) (A) is not correct but (R) is correct.
Explanation
Assertion (A) is incorrect because pure Electric Vehicles (EVs) have substantially lower fuel running costs per kilometer than Hybrid Electric Vehicles (HEVs).

Assertion (A) is not correct: EVs operate solely on electrical energy, which is much cheaper per unit of distance than the petroleum fuel consumed by hybrid engines. Hence, HEV running costs are higher than EV running costs.

Reason (R) is correct: Hybrid vehicles are mechanically engineered with both an internal combustion engine and an onboard electric generation and storage system.

Option (A) — incorrect because Assertion (A) is false.

Option (B) — incorrect because Assertion (A) is false.

Option (C) — incorrect because Assertion (A) is false.

Option (D) — correct because Assertion (A) is false and Reason (R) is true.
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Question 45
With respect to the computers, what is the purpose of compressing a data file?
1. ATo encrypt the data
2. BTo occupy less storage space
3. CTo increase transmission time over a network
4. DTo allow the file to be read by a variety of applications
Answer: (B) To occupy less storage space
Explanation
The primary objective of file compression is to reduce the file size so it occupies less storage space on disk.

Compression algorithms remove redundant data bits, which also accelerates file transmission over networks by reducing the total data payload that must be transferred.

Option (A) — incorrect, encryption secures data using cryptographic keys rather than shrinking file size.

Option (B) — correct as file compression specifically targets minimizing data storage requirements.

Option (C) — incorrect because compression decreases transmission time rather than increasing it.

Option (D) — incorrect, compression formats (such as ZIP or RAR) often require specialized decompression software before reading.
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Question 46
From the author's point of view, the main characteristic of human society has been
Human beings are not completely free to socially construct their own behaviour. They have a shared biological nature. The nature is remarkably uniform throughout the world, given the fact that most contemporary humans outside of Africa descended from a single relatively small group of individuals some fifty thousand years ago. This shared nature does not determine political behaviour, but it frames and limits the nature of institutions that are possible. It also means that human politics is subject to certain recurring patterns of behaviour across time and across cultures. This shared nature can be described in certain propositions like that the human beings never existed in a pre-social state.

The idea that human beings at one time existed as isolated individuals, who interacted either through anarchic violence (Hobbes) or in pacific ignorance of one another (Rousseau), is not correct. Human beings as well as their primate ancestors always lived in kin-based social groups of varying sizes.

Indeed, they lived in these social units for a sufficiently long period of time that the cognitive and emotional faculties needed to promote social cooperation evolved and became hardwired in their genetic endowments. This means that a rational-choice model of collective action, in which individuals calculate that they will be better off by cooperating with one another, vastly understates the degree of social cooperation that exists in human societies and misunderstands the motives that underlie it.

The next one is the idea of natural human sociability. This is built around two principles, kin selection and reciprocal altruism. The principle of kin selection or inclusive fitness states that human beings will act altruistically toward genetic relatives (or individuals believed to be genetic relatives) in rough proportion to their shared genes.

The principle of reciprocal altruism says that human beings tend to develop relationships of mutual benefit or mutual harm as they interact with other individuals over time. Reciprocal altruism, unlike kin selection, does not depend on genetic relatedness: it does however, depend upon repeated, direct personal interaction.
1. AAnarchic violence
2. BPacific ignorance of one another
3. CKinship based social groups
4. DCalculated individual relations
Answer: (C) Kinship based social groups
Explanation
The author explicitly states that human society has always been grounded in kinship-based social groups.

The passage directly refutes the idea of early humans as isolated individuals interacting through violence or ignorance, noting: "Human beings as well as their primate ancestors always lived in kin-based social groups of varying sizes."

Option (A) Anarchic violence — incorrect, this is Hobbes' view which the author explicitly rejects.

Option (B) Pacific ignorance of one another — incorrect, this is Rousseau's view which the author rejects.

Option (C) Kinship based social groups — correct, matching the author's affirmative position.

Option (D) Calculated individual relations — incorrect, the passage argues that rational-choice calculation understates human social cooperation.
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Question 47
The passage recognises the fact that human sociability has
Human beings are not completely free to socially construct their own behaviour. They have a shared biological nature. The nature is remarkably uniform throughout the world, given the fact that most contemporary humans outside of Africa descended from a single relatively small group of individuals some fifty thousand years ago. This shared nature does not determine political behaviour, but it frames and limits the nature of institutions that are possible. It also means that human politics is subject to certain recurring patterns of behaviour across time and across cultures. This shared nature can be described in certain propositions like that the human beings never existed in a pre-social state.

The idea that human beings at one time existed as isolated individuals, who interacted either through anarchic violence (Hobbes) or in pacific ignorance of one another (Rousseau), is not correct. Human beings as well as their primate ancestors always lived in kin-based social groups of varying sizes.

Indeed, they lived in these social units for a sufficiently long period of time that the cognitive and emotional faculties needed to promote social cooperation evolved and became hardwired in their genetic endowments. This means that a rational-choice model of collective action, in which individuals calculate that they will be better off by cooperating with one another, vastly understates the degree of social cooperation that exists in human societies and misunderstands the motives that underlie it.

The next one is the idea of natural human sociability. This is built around two principles, kin selection and reciprocal altruism. The principle of kin selection or inclusive fitness states that human beings will act altruistically toward genetic relatives (or individuals believed to be genetic relatives) in rough proportion to their shared genes.

The principle of reciprocal altruism says that human beings tend to develop relationships of mutual benefit or mutual harm as they interact with other individuals over time. Reciprocal altruism, unlike kin selection, does not depend on genetic relatedness: it does however, depend upon repeated, direct personal interaction.
1. APolitical determinants
2. BRational choice model
3. CIntegrated collective action
4. DGenetic linkage
Answer: (D) Genetic linkage
Explanation
The passage affirms that human sociability has a profound genetic linkage.

The text emphasizes that faculties supporting social cooperation "evolved and became hardwired in their genetic endowments" and that natural human sociability operates through kin selection based on "shared genes."

Option (A) Political determinants — incorrect because the passage says shared nature frames but does not determine political behaviour.

Option (B) Rational choice model — incorrect because the author criticizes the rational-choice model for misunderstanding underlying motives.

Option (C) Integrated collective action — incorrect as a defining cause of sociability.

Option (D) Genetic linkage — correct, matching the text's assertion that cooperative faculties are genetically hardwired.
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Question 48
Human beings did not exist in a pre-social state due to
Human beings are not completely free to socially construct their own behaviour. They have a shared biological nature. The nature is remarkably uniform throughout the world, given the fact that most contemporary humans outside of Africa descended from a single relatively small group of individuals some fifty thousand years ago. This shared nature does not determine political behaviour, but it frames and limits the nature of institutions that are possible. It also means that human politics is subject to certain recurring patterns of behaviour across time and across cultures. This shared nature can be described in certain propositions like that the human beings never existed in a pre-social state.

The idea that human beings at one time existed as isolated individuals, who interacted either through anarchic violence (Hobbes) or in pacific ignorance of one another (Rousseau), is not correct. Human beings as well as their primate ancestors always lived in kin-based social groups of varying sizes.

Indeed, they lived in these social units for a sufficiently long period of time that the cognitive and emotional faculties needed to promote social cooperation evolved and became hardwired in their genetic endowments. This means that a rational-choice model of collective action, in which individuals calculate that they will be better off by cooperating with one another, vastly understates the degree of social cooperation that exists in human societies and misunderstands the motives that underlie it.

The next one is the idea of natural human sociability. This is built around two principles, kin selection and reciprocal altruism. The principle of kin selection or inclusive fitness states that human beings will act altruistically toward genetic relatives (or individuals believed to be genetic relatives) in rough proportion to their shared genes.

The principle of reciprocal altruism says that human beings tend to develop relationships of mutual benefit or mutual harm as they interact with other individuals over time. Reciprocal altruism, unlike kin selection, does not depend on genetic relatedness: it does however, depend upon repeated, direct personal interaction.
1. ASocial kinsfolk
2. BHuman politics across cultures
3. CInstitutional limitations
4. DAbsence of individual independence
Answer: (A) Social kinsfolk
Explanation
Human beings never existed in an isolated pre-social state because they always lived within social kinsfolk.

The passage explains that humans and their primate ancestors "always lived in kin-based social groups of varying sizes," making existence as isolated, pre-social individuals historically inaccurate.

Option (A) Social kinsfolk — correct because continuous life in kin-based groups prevented a pre-social state.

Option (B) Human politics across cultures — incorrect, political structures are downstream of human nature.

Option (C) Institutional limitations — incorrect, institutions frame society rather than explaining the absence of a pre-social state.

Option (D) Absence of individual independence — incorrect, this is not the causal reason cited.
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Question 49
The shared biological nature of human’s influences

Source review note: Source wording “human’s influences” retained verbatim.
Human beings are not completely free to socially construct their own behaviour. They have a shared biological nature. The nature is remarkably uniform throughout the world, given the fact that most contemporary humans outside of Africa descended from a single relatively small group of individuals some fifty thousand years ago. This shared nature does not determine political behaviour, but it frames and limits the nature of institutions that are possible. It also means that human politics is subject to certain recurring patterns of behaviour across time and across cultures. This shared nature can be described in certain propositions like that the human beings never existed in a pre-social state.

The idea that human beings at one time existed as isolated individuals, who interacted either through anarchic violence (Hobbes) or in pacific ignorance of one another (Rousseau), is not correct. Human beings as well as their primate ancestors always lived in kin-based social groups of varying sizes.

Indeed, they lived in these social units for a sufficiently long period of time that the cognitive and emotional faculties needed to promote social cooperation evolved and became hardwired in their genetic endowments. This means that a rational-choice model of collective action, in which individuals calculate that they will be better off by cooperating with one another, vastly understates the degree of social cooperation that exists in human societies and misunderstands the motives that underlie it.

The next one is the idea of natural human sociability. This is built around two principles, kin selection and reciprocal altruism. The principle of kin selection or inclusive fitness states that human beings will act altruistically toward genetic relatives (or individuals believed to be genetic relatives) in rough proportion to their shared genes.

The principle of reciprocal altruism says that human beings tend to develop relationships of mutual benefit or mutual harm as they interact with other individuals over time. Reciprocal altruism, unlike kin selection, does not depend on genetic relatedness: it does however, depend upon repeated, direct personal interaction.
1. AThe division of social constructs
2. BThe nature of institutions in society
3. CThe political behaviour of people
4. DThe formation of social groups
Answer: (B) The nature of institutions in society
Explanation
Shared biological nature influences the nature of institutions that are possible in human society.

The passage specifies: "This shared nature does not determine political behaviour, but it frames and limits the nature of institutions that are possible."

Option (A) The division of social constructs — incorrect, the passage states humans are not completely free to socially construct behaviour.

Option (B) The nature of institutions in society — correct, directly matching the statement that it frames and limits possible institutions.

Option (C) The political behaviour of people — incorrect, the text explicitly notes it does not determine political behaviour.

Option (D) The formation of social groups — incorrect, social groups existed prior in ancestral primates.
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Question 50
The concept of social cooperation involves

a. Kin selection
b. Cognitive faculty
c. Emotional detachment
d. Reciprocal altruism

Choose the correct option:
Human beings are not completely free to socially construct their own behaviour. They have a shared biological nature. The nature is remarkably uniform throughout the world, given the fact that most contemporary humans outside of Africa descended from a single relatively small group of individuals some fifty thousand years ago. This shared nature does not determine political behaviour, but it frames and limits the nature of institutions that are possible. It also means that human politics is subject to certain recurring patterns of behaviour across time and across cultures. This shared nature can be described in certain propositions like that the human beings never existed in a pre-social state.

The idea that human beings at one time existed as isolated individuals, who interacted either through anarchic violence (Hobbes) or in pacific ignorance of one another (Rousseau), is not correct. Human beings as well as their primate ancestors always lived in kin-based social groups of varying sizes.

Indeed, they lived in these social units for a sufficiently long period of time that the cognitive and emotional faculties needed to promote social cooperation evolved and became hardwired in their genetic endowments. This means that a rational-choice model of collective action, in which individuals calculate that they will be better off by cooperating with one another, vastly understates the degree of social cooperation that exists in human societies and misunderstands the motives that underlie it.

The next one is the idea of natural human sociability. This is built around two principles, kin selection and reciprocal altruism. The principle of kin selection or inclusive fitness states that human beings will act altruistically toward genetic relatives (or individuals believed to be genetic relatives) in rough proportion to their shared genes.

The principle of reciprocal altruism says that human beings tend to develop relationships of mutual benefit or mutual harm as they interact with other individuals over time. Reciprocal altruism, unlike kin selection, does not depend on genetic relatedness: it does however, depend upon repeated, direct personal interaction.
1. A(a) and (b) only
2. B(b) and (c) only
3. C(c) and (d) only
4. D(a) and (d) only
Answer: (D) (a) and (d) only
Explanation
Natural human sociability and social cooperation are built upon the dual principles of kin selection and reciprocal altruism.

The passage states: "The next one is the idea of natural human sociability. This is built around two principles, kin selection and reciprocal altruism."

Kin selection (a): Altruism toward genetic relatives in proportion to shared genes.

Reciprocal altruism (d): Mutual benefit developed through repeated personal interactions over time.

Cognitive faculty (b) and emotional detachment (c) are not the two structural principles named for natural sociability.

Option (A) — incorrect because it pairs kin selection with cognitive faculty instead of reciprocal altruism.

Option (B) — incorrect combination.

Option (C) — incorrect combination.

Option (D) — correct because kin selection (a) and reciprocal altruism (d) are the two foundational principles.
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100 questions with the answer key and explanations.

Question 1
Which one of the following is not the guiding principle of World Bank regarding its lending operation?
1. AProper assessment of the repayment prospects of loans.
2. BLending should be only for specific projects which are economically and technically sound and of a high priority nature.
3. CThe lending should be to enable a country to meet foreign exchange content of the project cost.
4. DThe bank does expect the borrowing country to spend the loan in a particular country.
Answer: (D) The bank does expect the borrowing country to spend the loan in a particular country.
Explanation
The World Bank follows the principle of untied lending, meaning borrowers are free to procure goods and services through international competitive bidding across member nations rather than being tied to any specific country.

A. Proper assessment of repayment prospects — guiding principle. The Bank must ensure a borrower can service debt.

B. Lending for specific sound projects — guiding principle. Funds target high-priority, economically and technically sound projects.

C. Meeting foreign exchange content — guiding principle. Loans typically finance the direct foreign exchange component of project costs.

D. Spending loan in a particular country — not a guiding principle. Tying loans to purchases in a designated country violates World Bank charter guidelines.
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Question 2
Portfolio approach to investing is primarily focused on which of the following:
1. ADiversification
2. BValue protection
3. CReturn appreciation
4. DRisk optimisation
Answer: (D) Risk optimisation
Explanation
Modern Portfolio Theory establishes that the primary objective of a portfolio approach is risk optimisation — balancing expected return against risk across the efficient frontier rather than evaluating securities in isolation.

A. Diversification — an essential tool and strategy rather than the ultimate investment objective itself.

B. Value protection — primarily a capital preservation objective for conservative strategies.

C. Return appreciation — seeking returns without considering variance ignores portfolio trade-offs.

D. Risk optimisation — correct. Constructing portfolios aims to achieve the highest expected return for a targeted level of risk or minimize risk for a specified return.
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Question 3
SEBI's 'Skin in the game rule' is applicable to which of the following financial intermediaries?
1. AMerchant bankers
2. BFinancial Advisors
3. CMutual funds
4. DBrokerages
Answer: (C) Mutual funds
Explanation
SEBI introduced the skin in the game circular to align the interests of key employees of Asset Management Companies with mutual fund unit holders.

Under this regulation, designated employees of AMCs must invest a mandatory percentage of their compensation in the schemes they manage, subject to a minimum lock-in period.

A. Merchant bankers — governed by SEBI merchant banking regulations focused on issue management.

B. Financial Advisors — governed by SEBI Investment Advisers regulations.

C. Mutual funds — correct. Asset Management Companies and their key executives must hold mandatory scheme units.

D. Brokerages — governed by SEBI Stock Brokers regulations.
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Question 4
Concentration of all marketing efforts on a small but specific and well defined segment of the population is called:
1. ANiche marketing
2. BFranchising
3. CAmbush marketing
4. DViral marketing
Answer: (A) Niche marketing
Explanation
Niche marketing targets a narrowly defined customer group seeking a distinctive mix of benefits, allowing firms to dominate specialized market segments.

A. Niche marketing — correct. Focuses resources on a well-defined, tightly targeted customer group.

B. Franchising — a contractual business distribution format, not a market segmentation strategy.

C. Ambush marketing — associating an enterprise with an event without paying official sponsorship fees.

D. Viral marketing — promotional technique that encourages consumers to pass along marketing messages online.
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Question 5
A company does not include the value of skills gained by its employees from training programmes in its annual financial statements. Which one of the following accounting concepts is being applied in this case?
1. AGoing concern concept
2. BMoney measurement concept
3. CRevenue recognition concept
4. DBusiness entity concept
Answer: (B) Money measurement concept
Explanation
The money measurement concept dictates that only transactions and events capable of being expressed reliably in monetary terms can be recorded in financial statements.

Employee skills and training enhancements lack an objective monetary valuation standard, so accounting conventions exclude them from traditional balance sheets.

A. Going concern concept — assumes the business entity will continue operating indefinitely.

B. Money measurement concept — correct. Non-monetary attributes like employee skills are excluded.

C. Revenue recognition concept — determines the accounting timing of earning and realizing revenue.

D. Business entity concept — treats the business and its proprietors as separate distinct entities.
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Question 6
Which one among the following is the Interest Coverage Ratio for the company?

The information with respect to a company is:
EBIT = ₹35 lakhs
15% Term loan = ₹50 lakhs
Working capital term loan from bank @ 20% = ₹30 lakhs
10% Preference share capital = ₹10 lakhs
Public deposits accepted @ 14% = ₹15 lakhs
1. A0.45
2. B1.98
3. C2.24
4. D2.59
Answer: (C) 2.24
Explanation
Interest Coverage Ratio measures how easily a firm can pay its interest charges out of operating earnings:

Interest Coverage Ratio = EBIT / Total Interest Expense

Calculate the annual interest for each debt obligation:

Term loan interest = 15% of ₹50 lakhs = ₹7.50 lakhs

Working capital loan interest = 20% of ₹30 lakhs = ₹6.00 lakhs

Public deposits interest = 14% of ₹15 lakhs = ₹2.10 lakhs

Preference share dividend is an appropriation of profit after tax, not a debt interest expense.

Total Interest = ₹7.50 + ₹6.00 + ₹2.10 = ₹15.60 lakhs

Interest Coverage Ratio = 35 / 15.60 = 2.2436 ≈ 2.24
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Question 7
Which section of the Indian Companies Act, 2013 among the following provides for the appointment of first auditors by the Board of Directors within one month of the date of registration of the company?
1. A139(2)
2. B139(6)
3. C142(1)
4. D142(2)
Answer: (B) 139(6)
Explanation
Section 139(6) of the Companies Act, 2013 governs the appointment of the first auditor in non-government companies.

The Board of Directors must appoint the first auditor within 30 days from registration. If the Board fails, members appoint the auditor at an extraordinary general meeting within 90 days.

A. Section 139(2) — prescribes mandatory rotation of individual auditors and audit firms for specified classes of companies.

B. Section 139(6) — correct. Governs Board appointment of first auditors within 30 days of registration.

C. Section 142(1) — deals with fixing the remuneration of auditors by company members.

D. Section 142(2) — specifies reimbursement of auditor expenses incurred during company audit duties.
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Question 8
When the incoming partner cannot bring premium for goodwill, then the necessary adjustment for goodwill is done through which one of the following?
1. AGoodwill account of the partners
2. BCapital account of the new partners
3. CBalance sheet of the new partnership firm
4. DProfit & Loss Appropriation account
Answer: (B) Capital account of the new partners
Explanation
Accounting Standard 26 dictates that goodwill can be recognized only when consideration in money or money's worth has been paid, so unpurchased goodwill cannot be raised as a separate book asset.

When a new partner fails to contribute cash for goodwill, their share is adjusted directly by debiting the new partner's capital or current account and crediting the sacrificing partners in their sacrificing ratio.

A. Goodwill account of the partners — raising an unpurchased goodwill account is barred under AS-26.

B. Capital account of the new partners — correct. Debiting new partner capital/current account compensates sacrificing partners.

C. Balance sheet of the new partnership firm — direct balance sheet entries without ledger postings violate double-entry bookkeeping.

D. Profit & Loss Appropriation account — used for distribution of annual net earnings among existing partners.
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Question 9
Sweezy's kinked demand curve model to explain the price and output determination relates to which type of market structure?
1. APerfect Competition
2. BMonopolistic Competition
3. CMonopoly
4. DOligopoly
Answer: (D) Oligopoly
Explanation
Paul Sweezy formulated the kinked demand curve model in 1939 to explain price rigidity in non-collusive oligopoly markets.

The model assumes competitors will match a price decrease to protect market share, creating an inelastic demand curve below the prevailing price, but will ignore a price increase, producing an elastic demand curve above the kink.

A. Perfect Competition — firms face a horizontal, infinitely elastic demand curve at market price.

B. Monopolistic Competition — firms face downward-sloping, highly elastic demand curves without rigid kinks.

C. Monopoly — single seller faces the entire downward-sloping market demand curve.

D. Oligopoly — correct. Asymmetric rival reactions induce a discontinuous marginal revenue curve and rigid pricing.
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Question 10
Which one of the following is not the assumption for consumer behaviour based on the Ordinal Utility Theory?
1. ARationality of the consumer
2. BUtility only ordinally measurable
3. CSatiety of demand
4. DDiminishing marginal rate of substitution
Answer: (C) Satiety of demand
Explanation
Ordinal utility theory assumes non-satiety or monotonic preferences, meaning the consumer always prefers a bundle containing more of at least one good and no less of any other.

Satiety implies total saturation where extra consumption offers zero or negative utility, which contradicts the core downward slope and convexity of indifference curves.

A. Rationality of the consumer — standard assumption that consumers aim to maximize total satisfaction.

B. Utility only ordinally measurable — core premise of Hicks-Allen indifference analysis that consumers rank preferences.

C. Satiety of demand — not an assumption. Indifference analysis explicitly assumes non-satiety.

D. Diminishing marginal rate of substitution — fundamental assumption ensuring indifference curves are convex to the origin.
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Question 11
When the price increase of a commodity is followed by increased total revenue, which one of the following is the price elasticity coefficient?
1. AZero
2. BEqual to one
3. CMore than one
4. DLess than one
Answer: (D) Less than one
Explanation
Under Alfred Marshall's total outlay method, demand is inelastic when price and total revenue move in the same direction.

When price rises and total revenue also increases, the percentage drop in quantity demanded is smaller than the percentage rise in price, meaning the price elasticity coefficient is less than one.

A. Zero — perfectly inelastic demand implies quantity does not change at all.

B. Equal to one — unitary elasticity keeps total revenue constant regardless of price adjustments.

C. More than one — elastic demand causes price and total revenue to move in opposite directions.

D. Less than one — correct. Inelastic demand ensures price and total revenue move in the same direction.
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Question 12
Which one of the following production functions is a long-term production function?
1. AQ = a + bL - cL²
2. BQ = AKᵃLᵇ
3. CQ = a + bL + cL² - dL³
4. DQ = a + bL
Answer: (B) Q = AKᵃLᵇ
Explanation
A long-run production function allows all productive factors to vary simultaneously, studying returns to scale.

The Cobb-Douglas production function Q = AKᵃLᵇ treats both capital K and labour L as variable inputs, representing long-run production relationships.

A. Q = a + bL - cL² — single variable factor function describing the short-run law of diminishing returns.

B. Q = AKᵃLᵇ — correct. Multi-variable input function representing long-run returns to scale.

C. Q = a + bL + cL² - dL³ — cubic short-run production function demonstrating three classic stages of variable proportions.

D. Q = a + bL — linear short-run production function with only labour varying.
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Question 13
As per which one of the following approaches, a firm finances a part of its permanent working capital with short term financing?
1. AMatching Approach
2. BConservative Approach
3. CAggressive Approach
4. DTraditional Approach
Answer: (C) Aggressive Approach
Explanation
Working capital financing policies allocate short-term and long-term funds according to risk-profitability trade-offs.

An aggressive approach finances all seasonal current assets and a portion of permanent working capital with short-term funds, seeking lower borrowing costs despite higher refinancing risk.

A. Matching Approach — finances permanent assets with long-term sources and temporary assets with short-term sources.

B. Conservative Approach — finances all permanent assets and part of seasonal assets with long-term capital.

C. Aggressive Approach — correct. Permanent working capital requirements are partially funded via short-term debt.

D. Traditional Approach — broad general term, not a formal working capital financing classification.
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Question 14
Which one of the following approaches of capital structure pleads that debt financing initially increases the value of the firm; however excess debt financing beyond a particular point reduces the value of the firm?
1. ANet Income Approach
2. BNet Operating Income Approach
3. CTraditional Approach
4. DModigliani-Miller Approach
Answer: (C) Traditional Approach
Explanation
The traditional theory of capital structure balances the cost advantages of cheaper debt against escalating financial distress costs.

Initially, modest debt leverage lowers overall cost of capital and raises firm value. Beyond an optimal threshold, financial risk drives up the required return on equity and cost of debt, reducing firm value.

A. Net Income Approach — asserts higher debt leverage continuously lowers overall cost of capital and increases firm value.

B. Net Operating Income Approach — asserts total firm value and overall cost of capital remain independent of leverage.

C. Traditional Approach — correct. Firm value rises with initial leverage up to an optimum point before falling.

D. Modigliani-Miller Approach — proves capital structure irrelevance under perfect market assumptions.
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Question 15
Which of the following business would most likely use job order costing:
1. AA brewery
2. BAn oil refinery
3. CA company that makes frozen pizzas
4. DA print shop that specializes in wedding invitations
Answer: (D) A print shop that specializes in wedding invitations
Explanation
Job order costing tracks direct costs and allocates overhead to custom, non-standardized batches manufactured according to individual customer specifications.

A print shop crafting bespoke wedding invitations produces distinct batches with tailored paper stock, artwork, and typography.

A. A brewery — produces uniform batches in continuous flow using process costing.

B. An oil refinery — continuous processing of homogeneous crude output using process costing.

C. A company that makes frozen pizzas — mass manufacturing of identical packaged consumer food items using process costing.

D. A print shop specializing in wedding invitations — correct. Distinct custom customer orders require job order costing.
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Question 16
A company has 10% perpetual debt of $1,00,000. The tax rate is 35%. Which one of the following is the after-tax cost of capital assuming that the debt is issued at 10% premium?
1. A10%
2. B5.91%
3. C6.5%
4. D7.22%
Answer: (B) 5.91%
Explanation
Calculate after-tax cost of perpetual debt using annual interest, tax rate, and net proceeds:

Kd = [I * (1 - t)] / NP

Given values:

Annual coupon interest I = 10% of $1,00,000 = $10,000

Corporate tax rate t = 35% = 0.35

Issue price with 10% premium NP = $1,00,000 * 1.10 = $1,10,000

Substitute the values:
Kd = [10,000 * (1 - 0.35)] / 1,10,000
Kd = 6,500 / 1,10,000
Kd = 0.05909... ≈ 5.91%
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Question 17
While wandering in jungle, King Dushyant married Shankuntala as narrated in the "Abhigyan Shankuntalam". He gave her royal ring which could serve her identity when she would come to meet him, in future. However, she had lost the ring while going to meet him. When she arrived at Dushyant's palace, he failed to recognise her as she did not had the ring.

Which of the following statistical error King Dushyant had committed in this narrative?
1. AType I error
2. BType II error
3. CSampling error
4. DNon-Sampling error
Answer: (A) Type I error
Explanation
In hypothesis testing, a Type I error occurs when a true null hypothesis is mistakenly rejected.

Frame the narrative in statistical testing terms:

Null Hypothesis (H0): Shakuntala is the true royal wife.

Alternative Hypothesis (H1): Shakuntala is an imposter.

Ground reality: Shakuntala was genuinely his lawful wife, meaning the null hypothesis was true.

King Dushyant's decision: Because the identifying signet ring was missing, he rejected her genuine claim.

Rejecting the true null hypothesis constitutes a Type I error.

A. Type I error — correct. Rejection of a true null hypothesis.

B. Type II error — failing to reject a false null hypothesis.

C. Sampling error — difference between a sample statistic and the true population parameter.

D. Non-Sampling error — data collection, measurement, or processing mistakes.
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Question 18
Which one of the following statistical identities are useful in comparing the two regression equations based on different sample sizes?
1. ACoefficient of determination (r²)
2. BCoefficient of multiple determination (R²)
3. CAdjusted R²
4. DLogistic regression
Answer: (C) Adjusted R²
Explanation
Adjusted R² corrects the standard coefficient of determination for sample size and degrees of freedom, enabling fair comparisons across models.

While standard R² never decreases when extra predictors or sample differences exist, Adjusted R² penalizes model complexity:

Adjusted R² = 1 - [(1 - R²) * (n - 1) / (n - k - 1)]

A. Coefficient of determination (r²) — measures variance explained in simple bivariate regression, unadjusted for sample size.

B. Coefficient of multiple determination (R²) — automatically inflates as parameters grow and cannot compare different sample sizes.

C. Adjusted R² — correct. Incorporates sample size n and parameter count k to allow valid comparative model evaluation.

D. Logistic regression — regression method for categorical dependent variables, not a goodness-of-fit metric.
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Question 19
Which one of the following statements is false?
1. AArithmetic mean is used to measure the deviations in calculating standard deviation due to its least squares property
2. BZ-Score value of 'X' is the ratio between 'X' divided by mean X
3. CThe coefficient of variation is calculated as follows: X̄ / σ × 100
4. DStandard deviation can be equal to zero in some situations.
Accepted answers: (B) Z-Score value of 'X' is the ratio between 'X' divided by mean X, (C) The coefficient of variation is calculated as follows: X̄ / σ × 100
Explanation
Both statements B and C are mathematically false statistical definitions, so either option is accepted.

A. Arithmetic mean and standard deviation — true. Standard deviation measures deviations from the mean because the sum of squared deviations from the arithmetic mean is minimal.

B. Z-score definition — false. The Z-score measures how many standard deviations a value X lies away from the mean, calculated as Z = (X - μ) / σ rather than a ratio of X divided by the mean.

C. Coefficient of variation — false. Pearson's coefficient of variation is the standard deviation divided by the mean multiplied by 100, calculated as CV = (σ / X̄) * 100, which inverts the formula given in the statement.

D. Standard deviation equal to zero — true. When every observation in a series is identical, dispersion is zero and standard deviation equals zero.
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Question 20
Which one of the following expressions is not correct to calculate the coefficient of correlation between two variables?
1. AΣxy / (N·σx·σy)
2. B√(bᵧₓ · bₓᵧ)
3. CCov(x,y) / (σx²·σy²)
4. DCov(x,y) / (σx·σy)
Answer: (C) Cov(x,y) / (σx²·σy²)
Explanation
Karl Pearson's coefficient of correlation divides covariance by the product of individual standard deviations, not variances.

A. Σxy / (N·σx·σy) — correct Pearson formula using deviations from means x and y.

B. √(bᵧₓ · bₓᵧ) — correct geometric mean relationship between the two regression coefficients.

C. Cov(x,y) / (σx²·σy²) — incorrect expression. It divides by the product of variances rather than standard deviations, creating a dimensional error.

D. Cov(x,y) / (σx·σy) — standard correct definitional formula for Pearson's product-moment correlation.
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Question 21
Which one of the following is not true for Authority?
1. AIt is the legitimate right of a superior to command and compel his subordinates to perform a certain act.
2. BIt is mostly well-defined, conspicuous and finite.
3. CIt can be delegated.
4. DIt serves as a basis of both formal and informal organizations.
Answer: (D) It serves as a basis of both formal and informal organizations.
Explanation
Authority is formal institutional power vested in organizational roles, making it the foundation solely of formal organizations.

Informal organizations emerge spontaneously from social relations, personal affiliations, and interpersonal influence rather than official authority.

A. Legitimate right to command — true. Authority provides institutional legitimacy to give binding directions.

B. Well-defined, conspicuous and finite — true. Formal authority boundaries are specified in job descriptions and organizational charts.

C. It can be delegated — true. Managers can delegate legitimate authority downward to subordinates.

D. Basis of formal and informal organizations — not true. Informal structures rely on social rapport and informal influence rather than legitimate authority.
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Question 22
Which one of the tests measures the applicant's, level of knowledge and skill in a particular job in which one he will be appointed?
1. APersonality test
2. BAchievement test
3. CInterest test
4. DAptitude test
Answer: (B) Achievement test
Explanation
An achievement test, also referred to as a trade or proficiency test, evaluates an applicant's current acquired knowledge, proficiency, and applied technical skills for a specific post.

A. Personality test — measures behavioral tendencies, emotional balance, interpersonal styles, and values.

B. Achievement test — correct. Assesses demonstrated proficiency and mastery of skills required for the job.

C. Interest test — assesses an applicant's vocational inclinations and work preferences.

D. Aptitude test — measures latent potential to learn new skills rather than current job proficiency.
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Question 23
Which one of the following aims at the Task Dimension of organizational change?
1. ABroadening or narrowing span of control
2. BDiversifying into additional businesses
3. CImproving the efficiency of machines
4. DReallocating authority
Answer: (B) Diversifying into additional businesses
Explanation
Harold Leavitt's organizational systems model distinguishes four interconnected dimensions: tasks, structure, technology, and people.

The task dimension focuses on the fundamental work, missions, and business lines the enterprise engages in, such as diversifying into new commercial ventures.

A. Broadening or narrowing span of control — structural change altering managerial reporting relationships.

B. Diversifying into additional businesses — correct. Direct change in the nature and scope of organizational tasks.

C. Improving the efficiency of machines — technological change enhancing equipment and capital operations.

D. Reallocating authority — structural change modifying the distribution of power and formal responsibility.
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Question 24
Multicollinearity in the regression analysis is measured by:
1. ATolerance (1 - R²)
2. BHomoscedasticity
3. CPartial F-test
4. DDurbin-Whatson statistic
Answer: (A) Tolerance (1 - R²)
Explanation
Multicollinearity describes linear dependence among explanatory variables in multiple regression, commonly assessed using Tolerance and the Variance Inflation Factor.

Tolerance is calculated as 1 - Rj², where Rj² represents the coefficient of determination when predictor Xj is regressed on all remaining predictors. A lower tolerance indicates severe collinearity.

A. Tolerance (1 - R²) — correct. Directly measures collinearity among explanatory predictors.

B. Homoscedasticity — condition of constant variance in error terms, tested via Breusch-Pagan or White tests.

C. Partial F-test — tests the statistical contribution of adding a subset of predictors to a model.

D. Durbin-Whatson statistic — detects first-order autocorrelation in regression residuals.
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Question 25
Which one of the following distributions aptly describes the ownership of income and property in a capitalist economy?
1. ANormal distribution
2. BPoisson distribution
3. CF-distribution
4. DPareto distribution
Answer: (D) Pareto distribution
Explanation
Vilfredo Pareto developed the Pareto power-law distribution to describe empirical wealth and income concentration in economies, illustrating that a small fraction of owners hold the majority of wealth.

A. Normal distribution — bell-shaped symmetrical distribution typical of natural traits, inappropriate for highly skewed wealth distributions.

B. Poisson distribution — discrete distribution modeling rare independent events occurring across a fixed interval.

C. F-distribution — continuous distribution formed by the ratio of two independent chi-square variables, used for variance testing.

D. Pareto distribution — correct. Right-skewed heavy-tailed power law modeling income and property distributions.
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Question 26
The share capital of an RRB is subscribed by the Central Government, State Government and the Sponsoring Bank in which one of the following ratios?
1. A40:40:20
2. B50:15:35
3. C50:35:15
4. D60:30:10
Answer: (B) 50:15:35
Explanation
Under Section 6(2) of the Regional Rural Banks Act, 1976, the issued share capital of every Regional Rural Bank is subscribed in statutory proportions:

Central Government: 50%

State Government: 15%

Sponsoring Bank: 35%

This statutory ratio of 50:15:35 ensures central ownership, local state alignment, and operational mentorship by the commercial sponsor bank.
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Question 27
Which one of the following is used for international money transfer?
1. ARTGS
2. BNEFT
3. CSWIFT
4. DIMPS
Answer: (C) SWIFT
Explanation
SWIFT, the Society for Worldwide Interbank Financial Telecommunication, provides the secure global messaging network used by financial institutions worldwide to initiate international fund transfers.

A. RTGS — Real Time Gross Settlement handles large-value domestic interbank payments within India.

B. NEFT — National Electronic Funds Transfer is a nationwide batch-processed domestic electronic payment system in India.

C. SWIFT — correct. Operates the global standardized financial telecommunications protocol across borders.

D. IMPS — Immediate Payment Service is an instant 24x7 domestic retail interbank electronic fund transfer service managed by NPCI.
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Question 28
Pricing practice of setting a price target and then developing a product that would allow the firm to maximise total profit at that price is called:
1. APrice ceiling
2. BPrice matching
3. CPrice lining
4. DPricing power
Answer: (C) Price lining
Explanation
Price lining involves establishing predetermined price target points for a product line and engineering products to achieve targeted profits at each established price tier.

A. Price ceiling — a statutory maximum legal price set by government authorities.

B. Price matching — pricing strategy where a firm commits to match competitors' prices.

C. Price lining — correct. Selecting a price target point first and developing the product around that price point.

D. Pricing power — the capability of a firm to raise prices without substantially losing market demand.
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Question 29
Which one of the following pricing method is used in regulated industries?
1. AMark-up Pricing
2. BTarget-Rate-of-Return-Pricing
3. CEconomic-Value-to-Customer Pricing
4. DCompetitive Pricing
Answer: (B) Target-Rate-of-Return-Pricing
Explanation
Public regulatory authorities overseeing utilities such as power, telecom, and water apply target rate of return pricing to guarantee investors a fair return on invested capital while preventing monopoly exploitation.

A. Mark-up Pricing — traditional cost-plus method popular among retailers adding a standard percentage margin over unit costs.

B. Target-Rate-of-Return-Pricing — correct. Used by regulators to fix tariffs yielding a specified return on capital invested.

C. Economic-Value-to-Customer Pricing — value-based pricing linking price to customer cost savings and functional benefits.

D. Competitive Pricing — setting prices based on prevailing market rates, inapplicable in regulated natural monopolies.
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Question 30
Which one of the following categories of customers are opinion leaders who carefully search for new technologies that might give them a dramatic competitive advantage?
1. AEarly Adopters
2. BInnovators
3. CThe early majority
4. DThe late majority
Answer: (A) Early Adopters
Explanation
In diffusion theory, early adopters are visionary opinion leaders who actively seek breakthrough technologies to secure a substantial competitive edge.

A. Early Adopters — correct. Respected opinion leaders driven by dramatic competitive advantages.

B. Innovators — technology enthusiasts willing to experiment with unproven concepts despite high failure rates.

C. The early majority — pragmatic consumers adopting technology only after practical benefits are proven.

D. The late majority — skeptical conservatives adopting innovations only after they become universal industry standards.
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Question 31
Which one of the following is not coordinated in the Vertical Integration of Integrated Marketing Communications?
1. APricing
2. BSales
3. CProduct development
4. DCustomer service
Answer: (A) Pricing
Explanation
In Integrated Marketing Communications, vertical integration connects communication objectives with higher-level strategic missions, upstream product development, downstream sales forces, and ongoing customer service touchpoints.

Pricing belongs to horizontal integration, which coordinates elements across the marketing mix alongside packaging, promotion, and distribution.

A. Pricing — coordinated horizontally across marketing mix variables rather than vertically.

B. Sales — coordinated vertically to ensure frontline personnel deliver messages aligned with strategic objectives.

C. Product development — coordinated vertically to design product features matching communication promises.

D. Customer service — coordinated vertically to maintain post-purchase communication consistency.
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Question 32
Which one of the following is not a marketing tactic used for designing customer value?
1. AService
2. BCommunication
3. CBrand
4. DIncentives
Answer: (B) Communication
Explanation
In strategic marketing architecture, marketing tactics are categorized by their role in the value exchange:

Designing value: Product, Service, and Brand form the core value offering created for the target customer.

Communicating value: Communication informs, educates, and persuades the market regarding the value created.

Capturing and enhancing value: Price and Incentives monetize the offering and provide short-term purchase motivators.

Communication is utilized to convey and promote value rather than design the core offering itself.
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Question 33
Which one from among the following is not a generic strategy as per the generic strategies identified by Porter?
1. AMarket Penetration
2. BCost Leadership
3. CFocus
4. DDifferentiation
Answer: (A) Market Penetration
Explanation
Michael Porter defined three generic competitive strategies in strategic management: Cost Leadership, Differentiation, and Focus.

Market Penetration is a product-market growth vector in Igor Ansoff's Matrix, which focuses on expanding existing products into existing markets.

A. Market Penetration — an Ansoff growth strategy, not a Porter generic competitive strategy.

B. Cost Leadership — Porter's strategy of achieving lowest production and distribution costs industry-wide.

C. Focus — Porter's strategy of pursuing a narrow competitive scope with cost or differentiation advantage.

D. Differentiation — Porter's strategy of developing unique product attributes valued by customers.
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Question 34
Which is the single most important driver of innovation (Gerard. J. Tellis 2013) in a business firm?
1. ALabour
2. BCapital
3. CGovernment
4. DCulture
Answer: (D) Culture
Explanation
Gerard J. Tellis demonstrated through comprehensive cross-industry empirical research that an internal culture of innovation is the single most decisive driver of sustained breakthrough innovation.

While capital, labour, and public subsidies provide necessary infrastructure, a risk-tolerant culture that embraces creative destruction and empowers talent determines commercial success.

A. Labour — essential productive resource but incapable of driving radical innovation without supportive cultural incentives.

B. Capital — provides funding for research and development without guaranteeing innovative outcomes.

C. Government — provides public infrastructure and grants without driving internal firm-level innovation culture.

D. Culture — correct. Tellis identifies internal corporate culture as the paramount driver of commercial innovation.
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Question 35
Which one of the following rights is usually not available to a partner consequent to the dissolution of a firm?
1. ARight of equitable distribution of firm's property
2. BRight to return of premium on premature winding up
3. CRight to be consulted
4. DRight to restrain any partner or his representatives from the use of firm name or firm property
Answer: (C) Right to be consulted
Explanation
Under the Indian Partnership Act, 1932, dissolution terminates the ongoing business relationship between partners, restricting post-dissolution rights to liquidation, asset realization, and debt settlement.

The right to be consulted regarding ongoing business operations belongs to an active partner in a going concern, becoming obsolete once business operations cease upon dissolution.

A. Right of equitable distribution — provided under Section 46 to apply property toward firm liabilities and distribute surplus.

B. Right to return of premium — provided under Section 51 when a partnership formed for a fixed term dissolves prematurely.

C. Right to be consulted — not available post-dissolution. Operates only during ongoing business affairs.

D. Right to restrain misuse of firm name — provided under Section 53 to protect winding-up value.
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Question 36
Which one of the following duties is not a general duty of directors of a company?
1. ADuty of good faith in order to promote the object of the company
2. BDuty of due and reasonable care, skill and diligence and shall exercise independent judgment.
3. CDuty to attend Board Meetings
4. DDuty not to delegate or assign his office assignment.
Answer: (C) Duty to attend Board Meetings
Explanation
Section 166 of the Companies Act, 2013 codifies the general statutory duties of corporate directors.

While non-attendance at board meetings for twelve consecutive months can trigger vacation of office under Section 167(1)(b), attending every board meeting is an operational procedural requirement rather than one of the codified general duties in Section 166.

A. Duty of good faith — statutory duty under Section 166(2) to promote company objects for all stakeholders.

B. Duty of care, skill, and independent judgment — statutory duty under Section 166(3).

C. Duty to attend Board Meetings — not among the general statutory duties codified under Section 166.

D. Duty not to assign office — statutory duty under Section 166(6), which declares any assignment void.
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Question 37
A is entitled to children education allowance @ ₹ 80 p.m. per child, for three children, it amounts to ₹240 p.m. It will be exempted to the extent to which one of the following under the Indian Income Tax Act?
1. A₹200 p.m.
2. B₹160 p.m.
3. C₹240 p.m.
4. D₹300 p.m.
Answer: (B) ₹160 p.m.
Explanation
Under Section 10(14) read with Rule 2BB of the Income Tax Rules, Children Education Allowance is exempt up to ₹100 per month per child, subject to a statutory cap of two children.

The assessee receives ₹80 per month per child. Because the actual allowance of ₹80 is below the statutory ceiling of ₹100, the exemption is restricted to the actual allowance received for a maximum of two children:

Exempt amount = ₹80 * 2 children = ₹160 per month

The allowance received for the third child (₹80) is fully taxable.
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Question 38
Which one of the following represents empirical generalisations relating to GDP growth and changes in unemployment?
1. APhillips curve
2. BMisery index
3. CPareto distribution
4. DOkun's law
Answer: (D) Okun's law
Explanation
Arthur Okun observed an empirical macroeconomic relationship showing that each percentage point decline in unemployment corresponds to approximately two percentage points of output growth above potential GDP.

A. Phillips curve — examines the inverse empirical trade-off between inflation and unemployment.

B. Misery index — economic indicator summing the unemployment rate and the annual inflation rate.

C. Pareto distribution — statistical power law modeling skewed income and wealth distributions.

D. Okun's law — correct. Macroeconomic generalization relating output growth to changes in unemployment rates.
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Question 39
If the assessee is engaged in the business of growing and manufacturing tea in India, the agriculture income in that case shall be:
1. A25% of the income of such business
2. B40% of the income of such business
3. C60% of the income of such business
4. D75% of the income of such business
Answer: (C) 60% of the income of such business
Explanation
Rule 8 of the Income Tax Rules, 1962 governs the composite income derived from the cultivation and manufacture of tea in India.

The composite income is apportioned between exempt agricultural earnings and taxable business profits:

60% is deemed agricultural income and exempt from tax.

40% is treated as commercial business income and subject to regular tax assessment.
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Question 40
Amount unutilised in the capital gain scheme for which exemption was claimed under section 54 shall be treated as long-term capital in the previous year?
1. AIn which period of 2 years has expired from the date of deposit
2. BIn which period of 2 years has expired from the date of transfer
3. CIn which period of 3 years has expired from date of deposit
4. DIn which period of 3 years has expired from the date of transfer
Answer: (D) In which period of 3 years has expired from the date of transfer
Explanation
Under Section 54 of the Income Tax Act, a taxpayer claiming capital gains exemption on residential property must utilize deposited funds within three years from the date of transfer of the original asset.

If the deposited balance remains unutilized after three years have expired from the date of transfer, the unutilized sum is taxed as long-term capital gains in the previous year in which that three-year statutory window ends.
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Question 41
Currency depreciation in the Indian Rupee in recent times has largely been attributed to:

A. Declining domestic savings
B. Increasing FDI flows
C. Portfolio outflows
D. Higher currency circulation
E. Higher imports and debt servicing

Choose the correct answer from the options given below:
1. AA, B and C only
2. BB, C and D only
3. CA and D only
4. DC and E only
Answer: (D) C and E only
Explanation
Currency depreciation occurs when foreign exchange demand exceeds market supply, lowering the external purchasing power of the rupee.

A. Declining domestic savings — structural macroeconomic factor, not an immediate driver of foreign exchange volatility.

B. Increasing FDI flows — supplies foreign currency into India, which supports or appreciates the rupee.

C. Portfolio outflows — heavy institutional equity and debt liquidations raise dollar demand, driving rapid rupee depreciation.

D. Higher currency circulation — domestic monetary expansion that does not directly trigger exchange-rate depreciation.

E. Higher imports and debt servicing — elevated import bills and foreign debt repayment commitments intensify foreign currency outflows.
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Question 42
Which of the following factors restrain Globalization?

A. International economic integration
B. Nationalism
C. Emerging trade barriers
D. Regulatory controls
E. Move towards free marketing systems

Choose the correct answer from the options given below:
1. AA and E only
2. BC, D and E only
3. CB, C and D only
4. DA, B and D only
Answer: (C) B, C and D only
Explanation
Forces that restrain globalization restrict the cross-border movement of capital, goods, labour, and technology.

A. International economic integration — accelerates globalization by removing border frictions.

B. Nationalism — political emphasis on domestic protectionism that restricts cross-border trade.

C. Emerging trade barriers — tariff hikes, import quotas, and non-tariff regulations impede global merchandise flow.

D. Regulatory controls — foreign exchange restrictions and capital controls restrain international investments.

E. Move towards free marketing systems — market liberalization policy that promotes global economic integration.
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Question 43
The purpose (aim) of stock split is to

A. Increase the number of shares
B. Reduce market price per share
C. Arrest share price decline
D. Encourage wider public ownership
E. Reduce impact cost

Choose the correct answer from the options given below:
1. AA, B and C only
2. BB and D only
3. CB, C and E only
4. DA, D and E only
Answer: (B) B and D only
Explanation
A stock split subdivides a company's shares into multiple units without altering total equity capitalization.

The strategic aims are to lower the trading price per share into a popular retail range and expand the investor base:

A. Increase number of shares — mechanical arithmetic consequence of the division, not the underlying corporate objective.

B. Reduce market price per share — strategic objective that makes individual shares affordable to everyday retail investors.

C. Arrest share price decline — incorrect. Stock splits reduce per-share prices proportionately and cannot stop fundamental valuation drops.

D. Encourage wider public ownership — strategic objective that broadens distribution and enhances secondary market liquidity.

E. Reduce impact cost — trading execution outcome rather than the core corporate motivation.
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Question 44
The contribution margin can be increased by which of the following?

A. Increasing the selling price per unit
B. Changing the sales mixture and selling more profitable products for which the P/N ratio is higher
C. Keeping the marginal cost unchanged
D. Increase the amount of fixed assets
E. Decreasing the selling price per unit

Choose the correct answer from the options given below:
1. AB, C and E only
2. BA, C and D only
3. CA and B only
4. DD and E only
Answer: (C) A and B only
Explanation
Contribution margin equals sales revenue minus variable costs (Selling Price - Marginal Cost per unit).

A. Increasing the selling price per unit — widens the spread over variable cost, directly increasing contribution margin.

B. Changing the sales mixture towards higher P/V products — raises aggregate profitability and average contribution per sales unit.

C. Keeping marginal cost unchanged — neutral condition that preserves current margins rather than increasing them.

D. Increase fixed assets — fixed overhead investments do not affect the unit contribution margin calculation.

E. Decreasing selling price per unit — narrows the unit margin, reducing total contribution.
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Question 45
Which among the following information shall be disclosed for all public issues of shares irrespective of their issue price?

A. Earning per share
B. Dividend payout ratio
C. Pre-issue P/E ratio
D. Average return on net worth in last 3 years
E. Net asset value per share based on last balance sheet

Choose the correct answer from the options given below:
1. AA, B, D and E only
2. BA, C, D and E only
3. CB, C, D and E only
4. DA, B, C and D only
Answer: (B) A, C, D and E only
Explanation
SEBI Issue of Capital and Disclosure Requirements regulations mandate specific accounting ratios under the Basis for Issue Price section across all public issues:

Basic and diluted Earnings Per Share (A)

Pre-issue Price to Earnings ratio relative to issue price (C)

Average return on net worth across the prior three fiscal years (D)

Net asset value per share derived from the latest balance sheet (E)

Dividend payout ratios vary at board discretion and are omitted from the mandatory basis for issue price valuation formula.
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Question 46
Which of the following statements are true regarding price and output determination under perfect competition?

A. A firm is a price taker
B. In the long run, a firm is in equilibrium when its AR = MR = LAC = LMC
C. A firm is in equilibrium in the short run only when its AC = AR = MR = MC
D. A firm reaches its shut-down point when price goes below its AC
E. A firm fixes the price of its products when AR = MR

Choose the correct answer from the options given below:
1. AC and E only
2. BA and B only
3. CA, C and E only
4. DB, C and D only
Answer: (B) A and B only
Explanation
A competitive firm is an individual price taker that faces a perfectly elastic horizontal demand curve determined by market forces.

A. Firm is a price taker — true. Individual firms cannot influence prevailing market equilibrium price.

B. Long-run equilibrium — true. Free entry and exit drive normal profit equilibrium where Price = AR = MR = LAC = LMC at minimum LAC.

C. Short-run equilibrium condition — false. Short-run equilibrium requires MR = MC with rising MC, allowing supernormal profit or short-run loss.

D. Shut-down point — false. A firm halts production when price drops below Average Variable Cost, not Average Total Cost.

E. Setting product price — false. Competitive firms cannot fix prices.
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Question 47
Which of the following statements regarding the short-term theory of production and cost analysis are false?

A. Economic rent is the same as economic profit
B. Imputed cost is the rent of a hired building
C. When AC = MC, AC is minimum
D. When MC is rising, AC > MC
E. Output is optimum when AC = MC

Choose the correct answer from the options given below:
1. AA and E only
2. BB and D only
3. CA, B and C only
4. DC, D and E only
Answer: (B) B and D only
Explanation
Evaluate the short-term cost statements to identify the false assertions:

A. Economic rent and profit — distinct concepts, though both represent surplus earnings above transfer thresholds.

B. Imputed cost of hired building — false. Rent on a hired building is an explicit accounting cost, whereas imputed costs represent implicit opportunity costs of self-owned assets.

C. AC = MC at minimum AC — true. The marginal cost curve intersects the average cost curve at its lowest point.

D. When MC is rising, AC > MC — false. Once MC rises past the minimum point of AC, MC exceeds AC (MC > AC) while both continue upward.

E. Optimum output when AC = MC — true. Unit production costs are minimized where AC equals MC.
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Question 48
Which of the following statements regarding price and output determination under monopoly are correct?

A. A monopoly firm can fix its price anywhere along its demand curve
B. Even during short run when a monopoly firm earns normal profit, it produces less than its optimum capacity
C. The slope of monopoly's MR curve is twice the slope of its AR curve
D. Price discrimination is possible only when demand curves are identical in two markets
E. Equilibrium price of a monopolist is always higher than that of a perfectly competitive firm

Choose the correct answer from the options given below:
1. AA, D and E only
2. BA, B and E only
3. CB, C and D only
4. DB, C and E only
Answer: (D) B, C and E only
Explanation
Analyze price and output behavior for a profit-maximizing monopolist:

A. Fixing price anywhere on demand curve — incorrect. The firm is constrained by demand and chooses the price-output pair maximizing profits where MR = MC in the elastic segment.

B. Producing below optimum capacity — correct. Downward-sloping demand ensures equilibrium occurs where AC is still falling, yielding excess capacity.

C. Slope of MR relative to AR — correct. For a linear demand curve P = a - bQ, MR = a - 2bQ, so MR has twice the slope of AR.

D. Price discrimination condition — incorrect. Price discrimination requires differing price elasticities across sub-markets rather than identical curves.

E. Monopolist price compared to competition — correct. Monopolies produce less output and charge higher markups over marginal cost than competitive markets.
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Question 49
Which of the following are the components of Mc Kinsey's 7-S framework?

A. Shared values
B. Procurement
C. Strategy
D. Technology Development
E. System

Choose the correct answer from the options given below:
1. AA, C and E only
2. BB, C and E only
3. CA, B and E only
4. DB, D and E only
Answer: (A) A, C and E only
Explanation
The McKinsey 7-S model developed by Waterman, Peters, and Phillips specifies seven interdependent organizational dimensions:

Hard elements: Strategy, Structure, and Systems

Soft elements: Shared Values, Style, Staff, and Skills

Procurement and Technology Development are secondary support activities from Michael Porter's Value Chain framework rather than elements of McKinsey's 7-S model.
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Question 50
The MM hypothesis of the irrelevance of dividends is based on which of the following critical assumptions?

A. Investors are able to forecast future prices and dividends with certainty
B. The firm has a given investment policy which does not change
C. All financing is done through retained earnings
D. There are no taxes
E. Perfect capital markets in which all investors are rational

Choose the correct answer from the options given below:
1. AA, B and C only
2. BC, D and E only
3. CA, B, D and E only
4. DB, C, D and E only
Answer: (C) A, B, D and E only
Explanation
Modigliani and Miller's dividend irrelevance proposition relies on perfect market assumptions:

A. Perfect certainty — investors predict future security prices and distributions with certainty.

B. Given investment policy — firm investment outlays are fixed independently of dividend choices.

C. All financing via retained earnings — incorrect. That assumption belongs to Walter and Gordon's models. MM explicitly permits external equity issuance to fund investments.

D. Zero taxes — tax neutrality eliminates preferential rates on dividends versus capital gains.

E. Perfect capital markets — rational investors operate with zero transaction costs and symmetric information.
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Question 51
Which of the following are the properties of Binomial distribution?

A. May be symmetrical or skewed
B. Uni-modal, bell-shaped and symmetrical
C. Asymptotic to the x-axis
D. n and p are the two parameters
E. μ and σ are the two parameters

Choose the correct answer from the options given below:
1. AB and E only
2. BA and D only
3. CC and E only
4. DB, C and D only
Answer: (B) A and D only
Explanation
The Binomial distribution is a discrete probability distribution governed by sample size n and single-trial success probability p.

A. Symmetrical or skewed — true. Symmetrical when p = 0.5, positively skewed when p < 0.5, and negatively skewed when p > 0.5.

B. Bell-shaped and symmetrical — describes the continuous normal distribution.

C. Asymptotic to the x-axis — characteristic of continuous curves extending to infinity, such as the normal distribution.

D. n and p parameters — true. Completely specified by trial count n and Bernoulli probability p.

E. μ and σ parameters — true for the continuous normal distribution.
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Question 52
Which of the following are the parameters in the Financial Inclusion Index in India?

A. Affordability
B. Availability and usage
C. Ease of access
D. Transparency and disclosure
E. Quality of financial inclusion

Choose the correct answer from the options given below:
1. AA, B and C only
2. BC, D and E only
3. CA, B and D only
4. DB, C and E only
Answer: (D) B, C and E only
Explanation
The Reserve Bank of India Financial Inclusion Index tracks financial deepening across three weighted dimensions:

Access (35% weight) captures banking touchpoints and ease of physical and digital onboarding (C).

Usage (45% weight) captures the volume, frequency, and active utilization of formal deposit, credit, and remittance services (B).

Quality (20% weight) captures consumer protection, grievance redressal, and financial literacy (E).

Affordability and Transparency are sub-metrics rather than primary index dimensions.
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Question 53
Which of the following forces push up the productivity of employees in an organisation?

A. Difficulty of work
B. Fear of working self out of job
C. Egoistic drive to accomplish
D. Desire for promotion
E. Motive towards doing work

Choose the correct answer from the options given below:
1. AA and B only
2. BB, C and D only
3. CA, D and E only
4. DC, D and E only
Answer: (D) C, D and E only
Explanation
Productivity-enhancing drivers represent positive motivational forces that encourage discretionary work effort:

A. Difficulty of work — creates fatigue and cognitive strain that depresses efficiency.

B. Fear of working out of job — classic cause of deliberate output restriction and systematic soldiering.

C. Egoistic drive to accomplish — intrinsic achievement motivation that elevates individual output.

D. Desire for promotion — career incentive that drives sustained performance.

E. Motive towards doing work — engagement and job involvement that enhance daily task productivity.
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Question 54
According to the Contingency Approach, the factors governing the Span of Management are:

A. Type of work
B. Ability of the manager
C. Ability of the employees
D. Level of management
E. Geographic location

Choose the correct answer from the options given below:
1. AB and C only
2. BB, C and D only
3. CA, D and E only
4. DA, B, C, D and E
Answer: (D) A, B, C, D and E
Explanation
The contingency model of organizing maintains that optimal supervisory span depends on situational variables:

A. Type of work — routine standardized jobs permit wider spans than complex interdependent tasks.

B. Ability of manager — superior leadership and communication skills support larger spans.

C. Ability of employees — highly trained, self-directed subordinates reduce supervisory burden.

D. Level of management — executive levels require narrow spans due to strategic unstructured decisions.

E. Geographic location — dispersed teams necessitate narrower spans than co-located teams.
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Question 55
RBI financial inclusion index (FI - Index) quality parameter captures information on which of the following:

A. Financial literacy
B. Consumer protection
C. Ease of access
D. Availability and usage
E. Inequality and deficiency in service

Choose the correct answer from the options given below:
1. AA, B and C only
2. BC, D and E only
3. CA, D and E only
4. DA, B and E only
Answer: (D) A, B and E only
Explanation
The Quality dimension of the RBI Financial Inclusion Index reflects the experiential and protective value delivered to end users:

Financial literacy (A) tracks financial education and awareness programs.

Consumer protection (B) assesses dispute resolution and grievance redressal systems.

Inequality and deficiency in services (E) evaluates service gaps, transaction failures, and geographical disparities.

Ease of access is captured under the Access dimension, while availability and usage belong to the Usage dimension.
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Question 56
Properties of a good point estimator includes which of the following?

A. Stationarity
B. Efficiency
C. Consistency
D. Neutrality
E. Unbiasedness

Choose the correct answer from the options given below:
1. AA, B and C only
2. BC, D and E only
3. CA, D and E only
4. DB, C and E only
Answer: (D) B, C and E only
Explanation
Statistical estimation theory establishes four classical criteria for evaluating point estimators:

Efficiency (B) requires an estimator to have minimal sampling variance among comparable estimators.

Consistency (C) ensures the estimator converges stochastically to the true parameter as sample size increases.

Unbiasedness (E) requires the mathematical expectation of the estimator to equal the true population parameter.

Sufficiency requires the estimator to utilize all information contained in the sample.

Stationarity applies to stochastic time series, while neutrality is an unrelated economic concept.
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Question 57
Which of the following are the essential elements for defining a business?

A. Dealers
B. Products
C. Markets
D. Competitors
E. Functions

Choose the correct answer from the options given below:
1. AB, C and E only
2. BA, B and E only
3. CB, C and D only
4. DB and D only
Answer: (A) B, C and E only
Explanation
Derek Abell's three-dimensional business definition framework identifies the core pillars for establishing business scope:

Customer groups or target markets served (Markets, C)

Customer needs and activities performed for customers (Functions, E)

Alternative product technologies employed to satisfy those needs (Products, B)

Dealers and competitors represent external intermediaries and competitive forces rather than definitional components of business scope.
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Question 58
On which of the following bases buyers are divided in psychographic segmentation?

A. Loyalty status
B. Life style
C. Buyer-readiness stage
D. Values
E. User status

Choose the correct answer from the options given below:
1. AB and D only
2. BA, B and D only
3. CB, C and E only
4. DA, C, D and E only
Answer: (A) B and D only
Explanation
Psychographic segmentation segments markets according to psychological traits, lifestyle choices, and personal values:

Lifestyle (B) categorizes consumers by interests, activities, and daily social patterns.

Values (D) groups buyers according to core belief systems and moral principles.

Loyalty status (A), buyer-readiness stage (C), and user status (E) represent behavioural segmentation variables linked to purchase actions and brand interaction.
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Question 59
Which of the following issues are covered in Social Marketing?

A. Tobacco
B. Family planning
C. Public health
D. Financial well-being
E. Social good

Choose the correct answer from the options given below:
1. AA and B only
2. BA, B and C only
3. CC, D and E only
4. DA, B, C, D and E
Answer: (D) A, B, C, D and E
Explanation
Social marketing adapts commercial marketing concepts to induce voluntary behavioral change for collective societal welfare:

Anti-tobacco and substance abuse reduction programs (A)

Family planning and reproductive health campaigns (B)

Sanitation, hygiene, and public immunization initiatives (C)

Financial well-being, savings awareness, and debt management education (D)

Overarching civic welfare, environmental preservation, and social good initiatives (E)

All five areas represent established domains of social marketing practice.
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Question 60
Out of the following statements, which are not true in respect of a Limited Liability Partnership?

A. There must be at least one 'Designated member' at all times.
B. Designated members do not have the same rights and duties as any other member.
C. There is no specific requirement to have any non-designated members.
D. A Limited Liability Partnership may be established such that all members are considered to be designated members

Choose the correct answer from the options given below:
1. AA, C and D only
2. BA and B only
3. CB and D only
4. DB, C and D only
Answer: (B) A and B only
Explanation
Identify the inaccurate assertions concerning Limited Liability Partnerships:

A. One designated member required — not true. Section 7(1) of the Limited Liability Partnership Act mandates a minimum of two designated partners at all times.

B. Rights and duties distinct from members — not true. Designated partners hold the same general partnership rights and commercial duties as ordinary members, carrying added administrative filing responsibilities.

C. No requirement for non-designated members — true. An LLP can operate with solely designated members without appointing ordinary members.

D. All members can be designated — true. An LLP incorporation document may specify that all partners are designated members.
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Question 61
Which of the following companies cannot be a 'Small Company?

A. A holding company or a subsidiary company
B. A company registered under Section 8
C. A company or body corporate governed by any Special Act
D. One Person Company (OPC)

Choose the correct answer from the options given below:
1. AB and C only
2. BA, B and C only
3. CB, C and D only
4. DA and D only
Answer: (B) A, B and C only
Explanation
Section 2(85) of the Companies Act, 2013 sets turnover and capital limits for small companies while explicitly excluding certain corporate forms:

Holding companies and subsidiary companies (A)

Non-profit charitable companies incorporated under Section 8 (B)

Entities and statutory corporations governed by special Acts of Parliament (C)

A One Person Company (OPC) is a private limited company that can qualify for small company privileges when adhering to prescribed thresholds.
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Question 62
Who are not eligible to get information under the RTI Act from the following?

A. Corporations
B. Associations
C. Companies
D. Citizens
E. Legal entities

Choose the correct answer from the options given below:
1. AA, B, D and E only
2. BA, B, C and E only
3. CB and D only
4. DA, D and E only
Answer: (B) A, B, C and E only
Explanation
Section 3 of the Right to Information Act, 2005 establishes that the right to information belongs exclusively to Indian citizens.

Corporate bodies, incorporated companies, trade associations, and artificial legal persons are juristic entities rather than natural citizens, making them ineligible to seek information in a corporate capacity.

Corporations (A), Associations (B), Companies (C), and Legal entities (E) cannot file RTI requests.

Natural citizens of India (D) hold the statutory right to request and receive public records.
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Question 63
Which of the following cannot use ITR-1 form to file return under the Indian Income Tax Act?

A. An individual who is a director in a company.
B. An individual who has any asset located outside India.
C. An individual whose total income does not exceed Rs. 50,00,000
D. An individual who has income from any source outside India
E. An individual who has any unlisted equity shares at any time during the previous year

Choose the correct answer from the options given below:
1. AA, B, C and D only
2. BA, B, D and E only
3. CA, C and E only
4. DB, C and E only
Answer: (B) A, B, D and E only
Explanation
ITR-1 (Sahaj) is restricted to resident individuals with income up to Rs. 50 lakhs derived from salaries, one house property, and other sources.

Taxpayers are disqualified from filing ITR-1 if they meet any statutory exclusion:

Serving as a company director (A)

Holding assets located outside India or signing authority in foreign accounts (B)

Earning income from any foreign source (D)

Holding unlisted equity shares during the previous tax year (E)

Earning total income up to Rs. 50 lakhs (C) is a qualifying criterion rather than a disqualifying ground.
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Question 64
Which of the following are included in Salary as per Section 17(1) of the Income Tax Act?

A. Wages
B. Any pension or annuity
C. Any interest from Government securities
D. Any gratuity
E. Any advance of salary

Choose the correct answer from the options given below:
1. AA, B, C and D only
2. BA, B, C, D and E
3. CA, B, D and E only
4. DC and E only
Answer: (C) A, B, D and E only
Explanation
Section 17(1) of the Income Tax Act defines salary inclusively to encompass employment-related remuneration:

Wages earned under an employment contract (A)

Any pension or annuity paid by a current or past employer (B)

Gratuity payments received on service retirement or termination (D)

Advance salary payments drawn prior to accrual (E)

Interest on Government securities (C) constitutes investment income taxable under Income from Other Sources or Business Income rather than Salaries.
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Question 65
Which of the following are correctly needed to claim exemptions in respect of HRA?

A. Salary
B. Place of residence
C. Standard rent
D. Rent paid
E. HRA received

Choose the correct answer from the options given below:
1. AB, C, D and E only
2. BA, C, D and E only
3. CA, B, D and E only
4. DA, B and C only
Answer: (C) A, B, D and E only
Explanation
Under Section 10(13A) read with Rule 2A, the House Rent Allowance tax exemption equals the least of three calculations:

Actual HRA received from employer (E)

Rent paid minus 10% of defined salary (D and A)

50% of salary for metro locations or 40% for non-metro towns (determined by Place of residence, B)

Standard rent applies exclusively to calculating Annual Value of property under Income from House Property rather than HRA salary exemptions.
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Question 66

Match List I with List II.

List I (Tariff/Subsidy)	List II (Explanation)
A. Tariffication	I. They have demonstrably adverse effects on other member countries.
B. Prohibited subsidies	II. They act on goods which are contingent upon export performance.
C. Actionable subsidies	III. Replacement of existing non-tariff restrictions.
D. Non-actionable subsidies	IV. For industrial research in disadvantaged regions.

AA-II, B-III, C-I, D-IV
BA-IV, B-I, C-II, D-III
CA-III, B-II, C-I, D-IV
DA-II, B-IV, C-III, D-I

Answer: (C) A-III, B-II, C-I, D-IV

Explanation

Match WTO trade concepts with their definitions under the Agreement on Subsidies and Countervailing Measures:

A-III, B-II, C-I, D-IV

A. Tariffication — converts quantitative restrictions into equivalent border tariffs (III).
B. Prohibited subsidies — red-box subsidies conditioned upon export performance or domestic input mandates (II).
C. Actionable subsidies — amber-box subsidies permitted unless they cause proven adverse injury to another member (I).
D. Non-actionable subsidies — green-box subsidies for basic industrial research and regional development (IV).

Question 67

Match List I with List II.

List I (Type of Costing)	List II (Description)
A. Marginal Costing	I. Integrated approach to determine product features, product price, product costs and product design that helps ensure a company to earn reasonable profit on new products.
B. ABC Costing	II. The amount of any given volume of output by which the aggregate costs are changed if the volume of output is increased by one unit.
C. Target Costing	III. Used when identical units are produced through an on-going series of production steps.
D. Process Costing	IV. Costing system in which costs being with tracing of activities and then to producing the product.

AA-II, B-IV, C-I, D-III
BA-I, B-IV, C-III, D-II
CA-II, B-III, C-IV, D-I
DA-I, B-III, C-II, D-IV

Answer: (A) A-II, B-IV, C-I, D-III

Explanation

Match management accounting systems with their operational definitions:

A-II, B-IV, C-I, D-III

A. Marginal Costing — measures incremental change in aggregate cost when output increases by one unit (II).
B. ABC Costing — traces overheads first to cost pools and activities before allocating to final products (IV).
C. Target Costing — works backward from market price to engineer design and features ensuring target margin (I).
D. Process Costing — averages manufacturing costs across continuous mass production of identical units (III).

Question 68

Match List I with List II.

List I (Objectives of business firms)	List II (Suggested by)
A. Sales Revenue maximization	I. K.W. Rothschild
B. Maximization of Firm's growth rate	II. Cyert and March
C. Long-term survival	III. W.J. Baumol
D. Satisfying behaviour	IV. Robin Marris

AA-III, B-IV, C-I, D-II
BA-IV, B-III, C-II, D-I
CA-II, B-I, C-IV, D-III
DA-I, B-II, C-III, D-IV

Answer: (A) A-III, B-IV, C-I, D-II

Explanation

Match managerial and behavioral business theories with their formulating economists:

A-III, B-IV, C-I, D-II

A. Sales Revenue maximization — William Baumol formulated revenue maximization subject to minimum profit constraints (III).
B. Maximization of Firm's growth rate — Robin Marris developed dynamic growth maximization balancing managerial security (IV).
C. Long-term survival — K. W. Rothschild stressed firm security and long-run survival motives under oligopoly (I).
D. Satisfying behaviour — Richard Cyert and James March formalized behavioral satisficing and coalition bargaining (II).

Question 69

Match List I with List II.

List I (Economic framework)	List II (Description)
A. Stackelberg model	I. The situation in which each player in an oligopolistic markets adopts its dominant strategy but could do by cooperating
B. Nash equilibrium	II. Conceptualisation for identifying the structural determinants of the intensity of competition and the probability of firms in oligopolistic industries
C. Peter's strategic framework	III. If firms are disproportionately powerful the market leader makes the first move and captures two thirds of market share, while follower firm gets only a third of the market share
D. Prisoner's delima	IV. A situation in which each player has chosen his/her optional strategy given the strategy chosen by the other player

AA-II, B-IV, C-I, D-III
BA-III, B-IV, C-II, D-I
CA-III, B-I, C-IV, D-II
DA-II, B-III, C-I, D-IV

Answer: (B) A-III, B-IV, C-II, D-I

Explanation

Match strategic economic frameworks with their descriptive characteristics:

A-III, B-IV, C-II, D-I

A. Stackelberg model — sequential market leadership where the first mover captures two-thirds of the duopoly market (III).
B. Nash equilibrium — non-cooperative game outcome where each player chooses an optimal response given rival choices (IV).
C. Peter's strategic framework — structural industry analysis evaluating competitive intensity and firm profitability (II).
D. Prisoner's delima — classic dilemma where pursuit of individual dominant strategies yields suboptimal non-cooperative outcomes (I).

Question 70

Match List I with List II.

List I (Formula for test statistic)	List II (Test)
A. Σ (O-E)² / E	I. Z-test
B. [12 / n(n+1)] Σ(Rf²/nf) - 3(n+1)	II. H-test (Kruskal-Wallis test)
C. (X̄-μ) / SE	III. F-test (ANOVA)
D. SS between / SS within	IV. Chi-square test

AA-I, B-II, C-III, D-IV
BA-III, B-IV, C-II, D-I
CA-IV, B-II, C-I, D-III
DA-IV, B-II, C-III, D-I

Answer: (C) A-IV, B-II, C-I, D-III

Explanation

Match statistical test formulas with their corresponding hypothesis tests:

A-IV, B-II, C-I, D-III

A. Σ (O-E)² / E — Pearson Chi-square test of goodness of fit and independence (IV).
B. [12 / n(n+1)] Σ(Rf²/nf) - 3(n+1) — Kruskal-Wallis H-test for comparing multiple independent ranked samples (II).
C. (X̄ - μ) / SE — standard score for normal distribution tests of means (Z-test) (I).
D. SS between / SS within — variance ratio used in Analysis of Variance (F-test) (III).

Question 71

Match List I with List II.

List I (MBTI Framework - Jungian Aspects)	List II (Characteristics)
A. Sensing	I. Relies more on personal values than on impersonal analysis and logic
B. Thinking	II. Would work with known facts than look for possibilities and relationships
C. Feeling	III. Likes a flexible, spontaneous way rather than a planned and orderly way of life
D. Perceiving	IV. Relies more on interpersonal analysis and logic than on personal values

AA-II, B-I, C-IV, D-III
BA-II, B-IV, C-I, D-III
CA-III, B-IV, C-I, D-II
DA-II, B-I, C-III, D-IV

Answer: (B) A-II, B-IV, C-I, D-III

Explanation

Match Myers-Briggs personality dimensions with their behavioral characteristics:

A-II, B-IV, C-I, D-III

A. Sensing — focuses on concrete reality, present details, and known facts (II).
B. Thinking — evaluates information using objective logic and analytical principles (IV).
C. Feeling — bases judgments on human relationships, empathy, and personal core values (I).
D. Perceiving — prefers an open, spontaneous, and adaptable lifestyle approach (III).

Question 72

Match List I with List II.

List I (Entrepreneurial Theory)	List II (Description)
A. Thomas Cochran's Theory	I. Highlight the self-confidence of a person and the dependency on fortune and external environment for becoming an entrepreneur
B. Rotter's Locus of Control Theory	II. Religious beliefs are the driving or restraining forces for entrepreneurial activity
C. McLelland's Theory	III. The environment in which an individual is brought up determines his entrepreneurial urge
D. Max Webber's Theory	IV. The need for achievement (nAch) drives and stimulate entrepreneurship

AA-III, B-I, C-IV, D-II
BA-II, B-III, C-IV, D-I
CA-I, B-IV, C-II, D-III
DA-II, B-I, C-III, D-IV

Answer: (A) A-III, B-I, C-IV, D-II

Explanation

Match classic entrepreneurship theories with their explanatory premises:

A-III, B-I, C-IV, D-II

A. Thomas Cochran's Theory — cultural and social developmental environment shapes entrepreneurial supply (III).
B. Rotter's Locus of Control Theory — highlights personal self-confidence versus perceived reliance on external chance (I).
C. McLelland's Theory — high Need for Achievement (nAch) serves as the primary psychological spark (IV).
D. Max Webber's Theory — ethical and religious belief systems drive or restrain entrepreneurial initiative (II).

Question 73

Match List I with List II.

List I (PLC Stage)	List II (Pricing Strategy)
A. Decline	I. Price to match or beat competitors price
B. Maturity	II. Charge cost-plus price
C. Growth	III. Price reduction
D. Introduction	IV. Price to penetrate market

AA-III, B-IV, C-I, D-II
BA-III, B-II, C-I, D-IV
CA-III, B-I, C-IV, D-II
DA-II, B-I, C-III, D-IV

Answer: (C) A-III, B-I, C-IV, D-II

Explanation

Match stages of the Product Life Cycle with Kotler's strategic pricing tactics:

A-III, B-I, C-IV, D-II

A. Decline — cut prices to liquidate inventory and protect margin on diminishing sales (III).
B. Maturity — match or undercut competitor pricing to defend established market share (I).
C. Growth — set aggressive market-penetration prices to capture expanding customer volume (IV).
D. Introduction — establish cost-plus pricing to recover initial development outlays (II).

Question 74

Match List I with List II.

List I (Characterstic Business)	List II (Desription)
A. Cash Cows	I. The most valuable segments of a company; the parts most wanted by an acquirer
B. Crown Jewels	II. A third party friendly to management who helps a company avoid an unwanted takeover with taking over the company on its own
C. Fallen Angels	III. A BCG term for business segment which have a high market share in low growth markets
D. White Squire	IV. A bond issued at investment grade whose rating is subsequently dropped to below the investment grade

AA-II, B-IV, C-I, D-III
BA-I, B-IV, C-III, D-II
CA-IV, B-III, C-II, D-I
DA-III, B-I, C-IV, D-II

Answer: (D) A-III, B-I, C-IV, D-II

Explanation

Match corporate finance and strategic terms with their definitions:

A-III, B-I, C-IV, D-II

A. Cash Cows — BCG matrix units generating steady surplus cash with high market share in low-growth sectors (III).
B. Crown Jewels — the most profitable or strategically desirable business segments targeted by hostile acquirers (I).
C. Fallen Angels — corporate debt originally issued as investment grade that suffers downgrade to junk status (IV).
D. White Squire — friendly investor purchasing a strategic minority stake to deter a hostile takeover (II).

Question 75

Match List I with List II.

List I (Marketing Concept)	List II (Description)
A. Brand Equity	I. The maximum possible demand for a product when marketing expenditure in the industry is infinite
B. Brand Identity	II. The mental perception and associations of consumers related to a brand
C. Brand Image	III. The peculiar distinguishing color, design, label of a brand which distinguish brand of a firm
D. Market Potential	IV. A pool of goodwill consumers have related to a brand

AA-IV, B-III, C-II, D-I
BA-I, B-II, C-IV, D-III
CA-III, B-I, C-IV, D-II
DA-II, B-III, C-I, D-IV

Answer: (A) A-IV, B-III, C-II, D-I

Explanation

Match brand and market concepts with their definitions:

A-IV, B-III, C-II, D-I

A. Brand Equity — commercial value derived from consumer goodwill, brand awareness, and loyalty (IV).
B. Brand Identity — visual and communicative elements crafted by the firm to identify and distinguish its product (III).
C. Brand Image — customer perceptions and associations formed in consumer memory (II).
D. Market Potential — upper limit of industry demand under infinite marketing expenditure (I).

Question 76
Arrange the procedure followed for disbursement of export credit in a sequence from the first to the last:

A. The bank releases the funds debiting to the packing credit amount and credit to the exporter's account
B. The bank calculates the amount of packing credit to be granted
C. The exporter would be required to send the goods through approved transport and forwarding agency
D. The exporter is required to take adequate insurance
E. Submit an evidence of export

Choose the correct answer from the options given below:
1. AB, A, E, D, C
2. BA, C, B, D, E
3. CA, B, C, D, E
4. DE, B, A, C, D
Answer: (D) E, B, A, C, D
Explanation
Order the stages of pre-shipment packing credit disbursement chronologically:

E, B, A, C, D

1. Submit evidence of export (E) — the exporter submits an export order or confirmed irrevocable letter of credit to establish eligibility.

2. Calculate packing credit amount (B) — the financing bank evaluates order value and calculates permissible borrowing limits based on FOB value.

3. Release of funds (A) — the bank sanctions loan funds, debiting the packing credit account and crediting the exporter's operational account.

4. Despatch through approved transport (C) — goods are manufactured and consigned through authorized shipping agents.

5. Obtain insurance coverage (D) — marine and transit insurance is secured to safeguard cargo value.
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Question 77
Arrange the following steps in a logical sequence of the process of management audit:

A. Identification of responsibility centres
B. Review of organisational structure
C. Reporting
D. Identifying and segregating the objectives of business
E. Review of performance of each responsibility centre

Choose the correct answer from the options given below:
1. AA, D, E, C, B
2. BA, E, D, B, C
3. CA, B, E, D, C
4. DD, B, A, E, C
Answer: (D) D, B, A, E, C
Explanation
Arrange the management audit workflow in proper managerial sequence:

D, B, A, E, C

1. Identify business objectives (D) — ascertain corporate mission, strategic goals, and executive targets.

2. Review organisational structure (B) — examine lines of authority, division of labor, and reporting channels.

3. Identify responsibility centres (A) — map distinct cost, revenue, profit, and investment centers.

4. Review centre performance (E) — appraise operational and financial accomplishments against planned targets.

5. Reporting (C) — compile audit findings and submit recommendations to the Board of Directors.
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Question 78

Match List I with List II.

List I (Statistical identity)	List II (Description)
A. Power of test	I. Maximum level of significance at which the null hypothesis would be accepted
B. Standard error	II. Test for significance of regression equation
C. P-value	III. Standard deviation of an estimate from a sample
D. F-test	IV. The probability that test will lead to rejection of null hypothesis when it is false

AA-III, B-II, C-IV, D-I
BA-IV, B-III, C-I, D-II
CA-II, B-IV, C-I, D-III
DA-I, B-IV, C-II, D-III

Answer: (B) A-IV, B-III, C-I, D-II

Explanation

Match core statistical testing concepts with their technical definitions:

A-IV, B-III, C-I, D-II

A. Power of test — probability of rejecting a false null hypothesis, represented as 1 - β (IV).
B. Standard error — standard deviation of a sample statistic's sampling distribution (III).
C. P-value — lowest significance level at which the null hypothesis would be rejected (I).
D. F-test — tests the overall explanatory significance of multiple regression equations (II).

Question 79
Arrange the following steps in the design thinking process for an innovative solution to a problem:

A. Ideate
B. Test
C. Empathize
D. Define
E. Prototype

Choose the correct answer from the options given below:
1. AA, D, C, B, E
2. BB, C, A, D, E
3. CC, D, A, E, B
4. DC, B, A, E, D
Answer: (C) C, D, A, E, B
Explanation
Follow the standard five-phase Stanford d.school design thinking methodology:

C, D, A, E, B

1. Empathize (C) — research and observe user needs, emotional context, and latent challenges.

2. Define (D) — synthesize insights to construct a clear, human-centered problem statement.

3. Ideate (A) — brainstorm a broad range of creative potential solutions.

4. Prototype (E) — develop tangible, scaled-down physical or digital models.

5. Test (B) — validate prototypes through user interaction and iterative feedback.
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Question 80
What is the correct sequence in "Hierarchy of Effects" model in a communication situation:

A. Preference
B. Purchase
C. Awareness and Knowledge
D. Conviction
E. Liking

Choose the correct answer from the options given below:
1. AA, D, B, C, E
2. BD, B, E, C, A
3. CB, A, D, C, E
4. DC, E, A, D, B
Answer: (D) C, E, A, D, B
Explanation
Robert Lavidge and Gary Steiner's Hierarchy of Effects model tracks customer decision steps through cognitive, affective, and conative stages:

C, E, A, D, B

1. Awareness and Knowledge (C) — cognitive phase where the buyer learns about the brand and product features.

2. Liking (E) — affective phase where the buyer develops positive emotional sentiment.

3. Preference (A) — affective evaluation where the buyer rates the brand above rival options.

4. Conviction (D) — affective certainty where preference transforms into strong purchase intent.

5. Purchase (B) — conative behavioral commitment resulting in transaction execution.
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Question 81
Logically sequence the following stages in the organisational life cycle of a business firm:

A. Expansion
B. Survival
C. Consolidation
D. Start-up
E. Decline

Choose the correct answer from the options given below:
1. AD, A, C, B, E
2. BB, C, A, D, E
3. CD, B, C, A, E
4. DD, B, A, C, E
Answer: (D) D, B, A, C, E
Explanation
Arrange corporate developmental progression through its classic evolutionary phases:

D, B, A, C, E

1. Start-up (D) — firm creation, initial capital outlay, and market entry.

2. Survival (B) — establishing positive operating cash flow and proving basic commercial viability.

3. Expansion (A) — rapid customer acquisition, capacity scaling, and revenue growth.

4. Consolidation (C) — managerial formalization, organizational maturity, and market share defense.

5. Decline (E) — stagnation, loss of competitive edge, or liquidation.
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Question 82
Arrange the following ratios in the increasing order of their significance in the prediction of industrial sickness (Altman, 1966):

A. Working capital / Total Assets
B. Retained Earnings / Total Assets
C. Earnings Before Interest and Taxes / Total Assets
D. Market Value of Equity / Book Value of Total Debt
E. Sales / Total Assets

Choose the correct answer from the options given below:
1. AD, E, A, B, C
2. BC, E, B, D, A
3. CB, D, C, A, E
4. DE, B, D, C, A
Answer: (A) D, E, A, B, C
Explanation
Edward Altman's original multiple discriminant analysis Z-score model weights five financial ratios according to statistical predictive power:

Z = 1.2 * X1 + 1.4 * X2 + 3.3 * X3 + 0.6 * X4 + 0.999 * X5

Identify the discriminant coefficient for each ratio:

D. Market Value of Equity / Book Value of Debt (X4): coefficient = 0.6

E. Sales / Total Assets (X5): coefficient = 0.999

A. Working capital / Total Assets (X1): coefficient = 1.2

B. Retained Earnings / Total Assets (X2): coefficient = 1.4

C. EBIT / Total Assets (X3): coefficient = 3.3

Arranged in ascending order of coefficient weight:
D, E, A, B, C
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Question 83
Arrange the following stages in the marketing process of an enterprise:

A. Marketing Mix
B. Marketing program implementation
C. Marketing planning
D. Market research
E. Control and evaluation of marketing programs

Choose the correct answer from the options given below:
1. AD, C, A, B, E
2. BC, B, A, E, D
3. CB, A, D, C, E
4. DC, A, D, B, E
Answer: (A) D, C, A, B, E
Explanation
Order the phases of the strategic marketing management process from start to finish:

D, C, A, B, E

1. Market research (D) — assess market trends, competitor positioning, and customer demand profiles.

2. Marketing planning (C) — establish segmentation, targeting, positioning, and quantitative marketing goals.

3. Marketing Mix (A) — design the integrated 4Ps product, price, place, and promotion strategy.

4. Marketing program implementation (B) — execute marketing campaigns and deploy commercial field budgets.

5. Control and evaluation (E) — track KPIs, assess sales variance, and implement corrective measures.
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Question 84
Arrange the following process of making of a contract in the chronological sequence from the first to the last:

A. Agreement
B. Promise
C. Offer or proposal
D. Contract
E. Acceptance

Choose the correct answer from the options given below:
1. AC, E, B, A, D
2. BA, D, E, C, B
3. CB, D, C, A, E
4. DE, B, A, C, D
Answer: (A) C, E, B, A, D
Explanation
Section 2 of the Indian Contract Act, 1872 outlines the legal formation of an enforceable contract:

C, E, B, A, D

1. Offer or proposal (Section 2a) (C) — one party signifies willingness to do or abstain from doing something.

2. Acceptance (Section 2b) (E) — the offeree signifies assent to the proposal.

3. Promise (Section 2b) (B) — an accepted proposal matures into a legally binding promise.

4. Agreement (Section 2e) (A) — promises accompanied by lawful reciprocal consideration form an agreement.

5. Contract (Section 2h) (D) — an agreement enforceable by law becomes a contract.
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Question 85
Sequence the procedure for e-filing of ITR-1 and ITR-2:

A. Login
B. Register
C. Verification
D. Downloading utility and preparing the Return
E. e-Filing Income Tax Return

Choose the correct answer from the options given below:
1. AA, B, E, D, C
2. BB, A, D, E, C
3. CB, A, C, D, E
4. DA, B, C, D, E
Answer: (B) B, A, D, E, C
Explanation
Sequence the taxpayer compliance procedure for electronic return submission:

B, A, D, E, C

1. Register (B) — create an account on the e-filing portal using taxpayer PAN.

2. Login (A) — authenticate via registered credentials, PAN, and secure password.

3. Download utility and prepare return (D) — input income details into the statutory offline JSON/Excel utility.

4. e-Filing Income Tax Return (E) — upload the completed return file to the tax department server.

5. Verification (C) — complete legal verification via Aadhaar OTP, net banking, or physical ITR-V submission.
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Question 86
Assertion (A): An export processing zone is different from free trade zone as it promotes units primarily devoted to exports.

Reason (R): Goods imported to a free trade zone may be re-exported without any processing, in the same form. But goods exported by units in an EPZ are expected to have undergone some value addition by manufacturing.

In light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth A and R are correct and R is the correct explanation of A
2. BBoth A and R are correct but R is NOT the correct explanation of A
3. CA is correct but R is not correct
4. DA is not correct but R is correct
Answer: (A) Both A and R are correct and R is the correct explanation of A
Explanation
Evaluate the functional distinction between Export Processing Zones and Free Trade Zones:

Assertion (A) is correct. EPZs are specialized industrial enclaves developed to attract export-oriented manufacturing operations.

Reason (R) is correct. In Free Trade Zones, goods undergo warehousing, repacking, and re-export without mandatory physical transformation, whereas EPZs require domestic manufacturing and value addition prior to outbound shipment.

Because differing manufacturing value-addition requirements explain why EPZs focus exclusively on productive export units, Reason (R) correctly explains Assertion (A).
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Question 87
Assertion (A): By switching to long-term government bonds, the investor acquires an asset whose price fluctuates as interest rates vary.

Reason (R): Bond prices fall when interest rates rise and rise when interest rates fall.

In light of the above statements, choose the correct answer from the options given below:
1. ABoth A and R are true and R is the correct explanation of A
2. BBoth A and R are true but R is NOT the correct explanation of A
3. CA is true but R is false
4. DA is false but R is true
Answer: (A) Both A and R are true and R is the correct explanation of A
Explanation
Fixed-income securities exhibit interest rate sensitivity directly linked to bond maturity and duration:

Assertion (A) is true. Long-term sovereign bonds carry substantial duration, causing market market prices to fluctuate whenever benchmark yield curves shift.

Reason (R) is true. Fixed coupon payments create an inverse relationship between market yields and secondary bond prices: as interest rates rise, discount rates increase, causing market prices to fall.

Because the inverse pricing mechanism stated in Reason (R) directly explains why long-term bond values fluctuate with interest rate movements, Reason (R) is the correct explanation of Assertion (A).
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Question 88
Statement I: The probable error (P.E.) of the coefficient of correlation (r) is defined as: P.E. = (1-r²)/√n.

Statement II: When a null hypothesis is true but the test statistic rejects it, this is known as Type-I error in hypothesis testing.

In light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (D) Statement I is incorrect but Statement II is correct
Explanation
Evaluate the accuracy of both statistical propositions:

Statement I is incorrect. The Probable Error of Pearson's correlation coefficient includes a scaling factor of 0.6745:

P.E. = 0.6745 * (1 - r²) / √n

The unscaled formula (1 - r²) / √n defines the Standard Error rather than the Probable Error.

Statement II is correct. In hypothesis testing, mistakenly rejecting a true null hypothesis constitutes a Type-I error (alpha error).
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Question 89
Assertion (A): R² tends to be smaller for cross sectional data than for the time series data.

Reason (R): Wider fluctuations in the cross sectional data cause smaller value of R².

In light of the above statements, choose the correct answer from the options given below:
1. ABoth A and R are true and R is the correct explanation of A.
2. BBoth A and R are true but R is NOT the correct explanation of A.
3. CA is true but R is false.
4. DA is false but R is true.
Answer: (A) Both A and R are true and R is the correct explanation of A.
Explanation
In econometric modeling, goodness-of-fit differs systematically between data structures:

Assertion (A) is true. Cross-sectional regressions typically exhibit lower coefficients of determination (R²) than time-series regressions.

Reason (R) is true. Cross-sectional samples observe diverse individual entities with high idiosyncratic heterogeneity, creating substantial unexplained disturbance variance that reduces R².

Because the higher unobserved variation in cross-sectional observations directly causes lower R² values, Reason (R) is the correct explanation of Assertion (A).
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Question 90
Statement I: In the case of Life Insurance, the insurable interest must be present in the person insured at the time when the event happened.

Statement II: In the case of Fire Insurance, the insurable interest must be present in the object insured at the time when the policy is taken and the event has happened.

In light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth Statement I and Statement II are true
2. BBoth Statement I and Statement II are false
3. CStatement I is true but Statement II is false
4. DStatement I is false but Statement II is true
Answer: (D) Statement I is false but Statement II is true
Explanation
In insurance contracts, the required timing of insurable interest depends on the branch of insurance:

Statement I is false. In life insurance, insurable interest must exist at policy inception. It does not need to exist at maturity or when death occurs.

Statement II is true. In fire insurance contracts, the insured must hold an insurable pecuniary interest both when the policy is taken and at the time the loss occurs.
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Question 91
Which one of the following is most desirable to consolidate growth?
The Monetary Policy Committee of the RBI should neither raise policy rates nor wind up its accommodative policy stance. Yes, inflation has been on the rise, and growth has been setting in. This is the time to consolidate growth, not to be spooked by transient, supply-constrained inflation.

Choking off supply-side price shocks is self-defeating. Higher prices will curb demand and stimulate additional supplies, if the prices are allowed to work their way through the system, instead of being choked off through demand suppression. It is only the second-order effect of price shocks in energy, logistics and labour that call for curtailment of demand via higher interest rates.

Far from there being any sign of excess demand, the latest available national income figures suggest squeezed consumption and constrained investment. GDP this fiscal would struggle to recover the size attained at the end of 2019-20. The policy response appropriate for inflation caused by excess demand would be wholly unsuited for inflation caused by supply disruptions and a spike in energy prices. The right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in India. Both the Centre and the states should share the tax cuts. They should take this action, even as they strive to find common ground on bringing energy under the goods and services tax. The government also has the cushion of relatively high import duties that can be pared, to lower prices.

Stepping up production to increase supplies is another part of supply-constrained inflation. There are measures the RBI can take to increase access to credit by micro, small and medium enterprises, other than enhancing liquidity in general in the hope that some would find its way to the small sector. The RBI can do its bit to realise the government mandate for all large companies to purchase their inputs from the Trade Receivables Discounting System (TREDS), for example, if that improves trade finance significantly, some reduction in liquidity would not matter.
1. AReduce interest rate
2. BIncrease interest rate
3. CSuppression of demand
4. DStimulate additional supply
Answer: (D) Stimulate additional supply
Explanation
The passage argues that policy responses should focus on resolving supply bottlenecks rather than suppressing domestic demand:

The author warns that choking off supply-side shocks through demand suppression is self-defeating.

Allowing higher prices to stimulate additional supplies and stepping up production is emphasized as the appropriate remedy to consolidate economic growth.

Rate hikes and demand compression would undermine economic recovery.
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Question 92
Which one of the following statements is not true?
The Monetary Policy Committee of the RBI should neither raise policy rates nor wind up its accommodative policy stance. Yes, inflation has been on the rise, and growth has been setting in. This is the time to consolidate growth, not to be spooked by transient, supply-constrained inflation.

Choking off supply-side price shocks is self-defeating. Higher prices will curb demand and stimulate additional supplies, if the prices are allowed to work their way through the system, instead of being choked off through demand suppression. It is only the second-order effect of price shocks in energy, logistics and labour that call for curtailment of demand via higher interest rates.

Far from there being any sign of excess demand, the latest available national income figures suggest squeezed consumption and constrained investment. GDP this fiscal would struggle to recover the size attained at the end of 2019-20. The policy response appropriate for inflation caused by excess demand would be wholly unsuited for inflation caused by supply disruptions and a spike in energy prices. The right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in India. Both the Centre and the states should share the tax cuts. They should take this action, even as they strive to find common ground on bringing energy under the goods and services tax. The government also has the cushion of relatively high import duties that can be pared, to lower prices.

Stepping up production to increase supplies is another part of supply-constrained inflation. There are measures the RBI can take to increase access to credit by micro, small and medium enterprises, other than enhancing liquidity in general in the hope that some would find its way to the small sector. The RBI can do its bit to realise the government mandate for all large companies to purchase their inputs from the Trade Receivables Discounting System (TREDS), for example, if that improves trade finance significantly, some reduction in liquidity would not matter.
1. ABoth the Centre and the States should share the tax cuts equally
2. BGDP this fiscal would find it difficult to recover the size attained at the end of 2019-20
3. CCurtailment of demand via higher interest rates can be used in a limited way
4. DChoking off supply-side price shocks will affect growth adversely
Answer: (A) Both the Centre and the States should share the tax cuts equally
Explanation
Identify the claim that is not supported by the passage:

A. Sharing tax cuts equally — not true. The passage states both the Centre and the states should share tax cuts on energy, but never specifies equal fifty-fifty apportionment.

B. GDP recovery struggle — supported by the passage text noting GDP would struggle to reach 2019-20 levels.

C. Limited interest rate use — supported by the text restricting interest rate hikes only to second-order effects.

D. Adverse impact of choking shocks — supported by the passage identifying demand suppression as self-defeating.
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Question 93
Which of the following measures the RBI can take to consolidate growth?
The Monetary Policy Committee of the RBI should neither raise policy rates nor wind up its accommodative policy stance. Yes, inflation has been on the rise, and growth has been setting in. This is the time to consolidate growth, not to be spooked by transient, supply-constrained inflation.

Choking off supply-side price shocks is self-defeating. Higher prices will curb demand and stimulate additional supplies, if the prices are allowed to work their way through the system, instead of being choked off through demand suppression. It is only the second-order effect of price shocks in energy, logistics and labour that call for curtailment of demand via higher interest rates.

Far from there being any sign of excess demand, the latest available national income figures suggest squeezed consumption and constrained investment. GDP this fiscal would struggle to recover the size attained at the end of 2019-20. The policy response appropriate for inflation caused by excess demand would be wholly unsuited for inflation caused by supply disruptions and a spike in energy prices. The right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in India. Both the Centre and the states should share the tax cuts. They should take this action, even as they strive to find common ground on bringing energy under the goods and services tax. The government also has the cushion of relatively high import duties that can be pared, to lower prices.

Stepping up production to increase supplies is another part of supply-constrained inflation. There are measures the RBI can take to increase access to credit by micro, small and medium enterprises, other than enhancing liquidity in general in the hope that some would find its way to the small sector. The RBI can do its bit to realise the government mandate for all large companies to purchase their inputs from the Trade Receivables Discounting System (TREDS), for example, if that improves trade finance significantly, some reduction in liquidity would not matter.
1. AReduce tax on fuel price
2. BReduce import duty
3. CIncrease access to credit by MSMEs
4. DAbsorb price increase by providing subsidies
Answer: (C) Increase access to credit by MSMEs
Explanation
The passage details specific monetary and financial mechanisms available to the Reserve Bank of India:

The author explicitly recommends that the RBI take targeted steps to enhance access to credit for micro, small, and medium enterprises.

Fuel tax cuts, import duty reductions, and budgetary subsidies are fiscal actions administered by central and state governments, not the central bank.
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Question 94
Which one of the following is the cause of inflation as per the passage?
The Monetary Policy Committee of the RBI should neither raise policy rates nor wind up its accommodative policy stance. Yes, inflation has been on the rise, and growth has been setting in. This is the time to consolidate growth, not to be spooked by transient, supply-constrained inflation.

Choking off supply-side price shocks is self-defeating. Higher prices will curb demand and stimulate additional supplies, if the prices are allowed to work their way through the system, instead of being choked off through demand suppression. It is only the second-order effect of price shocks in energy, logistics and labour that call for curtailment of demand via higher interest rates.

Far from there being any sign of excess demand, the latest available national income figures suggest squeezed consumption and constrained investment. GDP this fiscal would struggle to recover the size attained at the end of 2019-20. The policy response appropriate for inflation caused by excess demand would be wholly unsuited for inflation caused by supply disruptions and a spike in energy prices. The right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in India. Both the Centre and the states should share the tax cuts. They should take this action, even as they strive to find common ground on bringing energy under the goods and services tax. The government also has the cushion of relatively high import duties that can be pared, to lower prices.

Stepping up production to increase supplies is another part of supply-constrained inflation. There are measures the RBI can take to increase access to credit by micro, small and medium enterprises, other than enhancing liquidity in general in the hope that some would find its way to the small sector. The RBI can do its bit to realise the government mandate for all large companies to purchase their inputs from the Trade Receivables Discounting System (TREDS), for example, if that improves trade finance significantly, some reduction in liquidity would not matter.
1. AReduction in interest rate
2. BIncrease in cost
3. CSupply disruptions
4. DIncrease in demand
Answer: (C) Supply disruptions
Explanation
The passage analyzes the root driver of ongoing inflationary pressures:

The author characterizes price rises as supply-constrained inflation stemming from global supply disruptions and energy price spikes.

The text explicitly notes that there is no sign of excess demand, as consumption and investment remain constrained.
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Question 95
Assertion (A): The policy response appropriate for inflation caused by excess demand would be wholly suited for inflation caused by a spike in energy prices.

Reason (R): The right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in India.

In light of these statements, choose the most appropriate answer:
The Monetary Policy Committee of the RBI should neither raise policy rates nor wind up its accommodative policy stance. Yes, inflation has been on the rise, and growth has been setting in. This is the time to consolidate growth, not to be spooked by transient, supply-constrained inflation.

Choking off supply-side price shocks is self-defeating. Higher prices will curb demand and stimulate additional supplies, if the prices are allowed to work their way through the system, instead of being choked off through demand suppression. It is only the second-order effect of price shocks in energy, logistics and labour that call for curtailment of demand via higher interest rates.

Far from there being any sign of excess demand, the latest available national income figures suggest squeezed consumption and constrained investment. GDP this fiscal would struggle to recover the size attained at the end of 2019-20. The policy response appropriate for inflation caused by excess demand would be wholly unsuited for inflation caused by supply disruptions and a spike in energy prices. The right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in India. Both the Centre and the states should share the tax cuts. They should take this action, even as they strive to find common ground on bringing energy under the goods and services tax. The government also has the cushion of relatively high import duties that can be pared, to lower prices.

Stepping up production to increase supplies is another part of supply-constrained inflation. There are measures the RBI can take to increase access to credit by micro, small and medium enterprises, other than enhancing liquidity in general in the hope that some would find its way to the small sector. The RBI can do its bit to realise the government mandate for all large companies to purchase their inputs from the Trade Receivables Discounting System (TREDS), for example, if that improves trade finance significantly, some reduction in liquidity would not matter.
1. ABoth A and R are correct and R is the correct explanation of A
2. BBoth A and R are correct but R is NOT the correct explanation of A
3. CA is correct but R is not correct
4. DA is not correct but R is correct
Answer: (D) A is not correct but R is correct
Explanation
Evaluate the assertions directly against the argument in the passage:

Assertion (A) is incorrect. The text explicitly states that policies suited for demand-pull inflation would be wholly unsuited for inflation caused by supply bottlenecks and energy spikes.

Reason (R) is correct. The passage identifies lowering energy taxes as the most effective immediate measure to alleviate supply-driven inflation.
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Question 96

Which one of the following is PV ratio for the company?

The following information is available with respect to a company manufacturing a particular product:

Particulars	Amount
Sale price (per unit)	₹20
Variable manufacturing cost per unit	₹11
Variable selling cost per unit	₹3
Fixed factory overheads (per year)	₹5,40,000
Fixed selling costs (per year)	₹2,52,000

A1.82%
B1.43%
C30%
D33%

Answer: (C) 30%

Explanation

Calculate Profit-Volume ratio using selling price and total variable costs:

PV Ratio = [(Selling Price - Variable Cost per unit) / Selling Price] * 100

Given data:

Selling price per unit = ₹20
Variable manufacturing cost per unit = ₹11
Variable selling cost per unit = ₹3
Total variable cost per unit = ₹11 + ₹3 = ₹14

Contribution per unit = ₹20 - ₹14 = ₹6

PV Ratio = (6 / 20) * 100 = 30%

Question 97

Which one of the following is the break-even point in units for the company?

The following information is available with respect to a company manufacturing a particular product:

Particulars	Amount
Sale price (per unit)	₹20
Variable manufacturing cost per unit	₹11
Variable selling cost per unit	₹3
Fixed factory overheads (per year)	₹5,40,000
Fixed selling costs (per year)	₹2,52,000

A1,32,000 units
B38,576 units
C84,000 units
D72,000 units

Answer: (A) 1,32,000 units

Explanation

Calculate break-even output using total fixed costs and unit contribution:

Break-Even Point (units) = Total Fixed Overheads / Contribution per unit

Compute total fixed costs:

Fixed factory overheads = ₹5,40,000
Fixed selling costs = ₹2,52,000
Total Fixed Overheads = ₹5,40,000 + ₹2,52,000 = ₹7,92,000

Unit contribution = ₹20 - (₹11 + ₹3) = ₹6

Break-Even Point (units) = 7,92,000 / 6 = 1,32,000 units

Question 98

Which one of the following is the break-even point in terms of rupees?

The following information is available with respect to a company manufacturing a particular product:

Particulars	Amount
Sale price (per unit)	₹20
Variable manufacturing cost per unit	₹11
Variable selling cost per unit	₹3
Fixed factory overheads (per year)	₹5,40,000
Fixed selling costs (per year)	₹2,52,000

A₹18,00,000
B₹26,40,000
C₹38,57,600
D₹13,20,000

Answer: (B) ₹26,40,000

Explanation

Question 99

Which one of the following is desired sales volume in units to earn a profit of ₹60,000?

The following information is available with respect to a company manufacturing a particular product:

Particulars	Amount
Sale price (per unit)	₹20
Variable manufacturing cost per unit	₹11
Variable selling cost per unit	₹3
Fixed factory overheads (per year)	₹5,40,000
Fixed selling costs (per year)	₹2,52,000

A93,667 units
B2,64,000 units
C1,32,000 units
D1,42,000 units

Answer: (D) 1,42,000 units

Explanation

Question 100

Which one of the following is desired sales (rupees) to earn a profit of ₹1,20,000?

The following information is available with respect to a company manufacturing a particular product:

Particulars	Amount
Sale price (per unit)	₹20
Variable manufacturing cost per unit	₹11
Variable selling cost per unit	₹3
Fixed factory overheads (per year)	₹5,40,000
Fixed selling costs (per year)	₹2,52,000

A₹26,40,000
B₹30,40,000
C₹15,20,000
D₹26,40,000

Answer: (B) ₹30,40,000

Explanation

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50 questions with the answer key and explanations.

Question 1
The percentage of the number of students qualifying from Schools A-G together in 2021 with reference to 2020 is
Based on the data in the table, answer the five questions that follow:

The following table shows the percentage (%) distribution of number of students qualifying an Entrance Exam from seven schools A-G in the years 2020 and 2021. The number of students qualifying from School G in 2020 and 2021 are 90 and 135, respectively.

School-wise Distribution of Qualified Students

School Distribution (%) of Qualified students (2020) Distribution (%) of Qualified students (2021)
A 21% 23%
B 14% 8%
C 16% 11%
D 10% 14%
E 18% 16%
F 9% 13%
G 12% 15%
1. A140%
2. B120%
3. C135%
4. D112%
Answer: (B) 120%
Explanation
The total number of students qualifying in 2021 with reference to 2020 is 120%.

Calculate the aggregate qualifying students:

In 2020, total students across all schools A-G = 750

In 2021, total students across all schools A-G = 900

Percentage relative to 2020:
(900 / 750) * 100 = 120%

A. 140% — incorrect.

B. 120% — correct. The 2021 total of 900 students divided by the 2020 total of 750 students gives 1.2, or 120%.

C. 135% — incorrect.

D. 112% — incorrect.
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Question 2
The percent rise in the number of students qualifying from School D from 2020 to 2021 is
Based on the data in the table, answer the five questions that follow:

The following table shows the percentage (%) distribution of number of students qualifying an Entrance Exam from seven schools A-G in the years 2020 and 2021. The number of students qualifying from School G in 2020 and 2021 are 90 and 135, respectively.

School-wise Distribution of Qualified Students

School Distribution (%) of Qualified students (2020) Distribution (%) of Qualified students (2021)
A 21% 23%
B 14% 8%
C 16% 11%
D 10% 14%
E 18% 16%
F 9% 13%
G 12% 15%
1. A60%
2. B63%
3. C68%
4. D72%
Answer: (C) 68%
Explanation
The percent rise in qualified students from School D is 68%.

From the table:

Students qualifying from School D in 2020 = 10% of 750 = 75

Students qualifying from School D in 2021 = 14% of 900 = 126

Absolute increase:
126 - 75 = 51

Percentage rise:
(51 / 75) * 100 = 68%

A. 60% — incorrect.

B. 63% — incorrect.

C. 68% — correct. The increase of 51 students over the base of 75 students equals 68%.

D. 72% — incorrect.
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Question 3
Number of student qualifying from Schools E and G together in 2020 is ____% of the number of students qualifying from School B in 2021.
Based on the data in the table, answer the five questions that follow:

The following table shows the percentage (%) distribution of number of students qualifying an Entrance Exam from seven schools A-G in the years 2020 and 2021. The number of students qualifying from School G in 2020 and 2021 are 90 and 135, respectively.

School-wise Distribution of Qualified Students

School Distribution (%) of Qualified students (2020) Distribution (%) of Qualified students (2021)
A 21% 23%
B 14% 8%
C 16% 11%
D 10% 14%
E 18% 16%
F 9% 13%
G 12% 15%
1. A188.5
2. B247.5
3. C342.5
4. D312.5
Answer: (D) 312.5
Explanation
The required percentage is 312.5%.

Calculate the qualifying students:

In 2020, total students = 750.

School E in 2020 = 18% of 750 = 135

School G in 2020 = 12% of 750 = 90

Combined students from E and G in 2020 = 135 + 90 = 225

For School B in 2021:

Total students in 2021 = 900

School B in 2021 = 8% of 900 = 72

Percentage calculation:
(225 / 72) * 100 = 312.5%

A. 188.5 — incorrect.

B. 247.5 — incorrect.

C. 342.5 — incorrect.

D. 312.5 — correct. It represents the exact ratio of 225 students from Schools E and G to 72 students from School B expressed as a percentage.
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Question 4
If P and Q are the average number of students qualifying from Schools B, C and D in 2020 and from Schools E. F and G in 2021, respectively, then Q - P is
Based on the data in the table, answer the five questions that follow:

The following table shows the percentage (%) distribution of number of students qualifying an Entrance Exam from seven schools A-G in the years 2020 and 2021. The number of students qualifying from School G in 2020 and 2021 are 90 and 135, respectively.

School-wise Distribution of Qualified Students

School Distribution (%) of Qualified students (2020) Distribution (%) of Qualified students (2021)
A 21% 23%
B 14% 8%
C 16% 11%
D 10% 14%
E 18% 16%
F 9% 13%
G 12% 15%
1. A32
2. B35
3. C38
4. D41
Answer: (A) 32
Explanation
The difference Q - P is 32.

From the table, the total number of qualified students in each year is calculated from School G:

In 2020, School G accounts for 12% of total students, which equals 90:
Total (2020) = 90 / 0.12 = 750

In 2021, School G accounts for 15% of total students, which equals 135:
Total (2021) = 135 / 0.15 = 900

Now, calculate P (average of Schools B, C, and D in 2020):

School B (14% of 750) = 105

School C (16% of 750) = 120

School D (10% of 750) = 75
Total for B, C, and D = 105 + 120 + 75 = 300
P = 300 / 3 = 100

Next, calculate Q (average of Schools E, F, and G in 2021):

School E (16% of 900) = 144

School F (13% of 900) = 117

School G (15% of 900) = 135
Total for E, F, and G = 144 + 117 + 135 = 396
Q = 396 / 3 = 132

Difference:
Q - P = 132 - 100 = 32

A. 32 — correct. It matches the difference between average Q (132) and average P (100).

B. 35 — incorrect. This would result from an arithmetic error in the total student count.

C. 38 — incorrect.

D. 41 — incorrect.
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Question 5
The ratio of the number of students qualifying from Schools B, C and D in 2020 to that of Schools E, F and G in 2021 is
Based on the data in the table, answer the five questions that follow:

The following table shows the percentage (%) distribution of number of students qualifying an Entrance Exam from seven schools A-G in the years 2020 and 2021. The number of students qualifying from School G in 2020 and 2021 are 90 and 135, respectively.

School-wise Distribution of Qualified Students

School Distribution (%) of Qualified students (2020) Distribution (%) of Qualified students (2021)
A 21% 23%
B 14% 8%
C 16% 11%
D 10% 14%
E 18% 16%
F 9% 13%
G 12% 15%
1. A2 : 3
2. B51 : 75
3. C3 : 2
4. D25 : 33
Answer: (D) 25 : 33
Explanation
The ratio of the qualifying students is 25 : 33.

From the table and base student populations:

Total qualifying students in 2020 = 750

Students from B, C, and D in 2020 = (14% + 16% + 10%) of 750 = 40% of 750 = 300

For Schools E, F, and G in 2021:

Total qualifying students in 2021 = 900

Students from E, F, and G in 2021 = (16% + 13% + 15%) of 900 = 44% of 900 = 396

Forming the ratio:
300 : 396 = 25 : 33 (dividing both terms by 12)

A. 2 : 3 — incorrect.

B. 51 : 75 — incorrect.

C. 3 : 2 — incorrect.

D. 25 : 33 — correct. Dividing both 300 and 396 by their greatest common factor 12 yields 25 : 33.
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Question 6
Teacher 'A' uses chalk and board and dictates notes to students in classroom. Teacher 'B' uses Videoconferencing tool and LMS for providing digital resources. Which modes of teaching are used by teacher A and teacher B?
1. ABoth online
2. BBoth offline
3. CTeacher-A: online: Teacher-B: offline
4. DTeacher-A: offline: Teacher-B: online
Answer: (D) Teacher-A: offline: Teacher-B: online
Explanation
Teacher A uses traditional offline classroom methods, while Teacher B uses digital online tools.

Analysis of the teaching modes:

Teacher A operates in a face-to-face physical classroom with traditional physical tools (chalk and blackboard) and in-person dictation, which defines offline teaching.

Teacher B employs digital communication platforms (videoconferencing) and a Learning Management System (LMS) to deliver instruction and resources over the internet, which defines online teaching.

A. Both online — incorrect. Teacher A uses physical chalk-and-talk methods.

B. Both offline — incorrect. Teacher B relies on digital LMS and videoconferencing tools.

C. Teacher-A: online: Teacher-B: offline — incorrect. The assignments are the exact reverse of the actual modes.

D. Teacher-A: offline: Teacher-B: online — correct. It accurately maps the physical classroom to offline and the digital platforms to online teaching.
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Question 7
Which of the following tools can be used for ICT enabled teaching?
1. APaper charts
2. BPhysical models
3. CProjector
4. DBlack Board
Answer: (C) Projector
Explanation
A digital projector is an information and communication technology tool used to display multimedia learning content.

Classification of teaching aids:

ICT tools — electronic and digital hardware/software devices used to create, process, and display digital resources, including projectors, interactive whiteboards, computers, and tablets

Traditional non-ICT tools — physical non-digital instructional media such as paper charts, physical three-dimensional models, and blackboards

A. Paper charts — incorrect. Paper charts are non-digital traditional graphic aids.

B. Physical models — incorrect. Physical models are traditional three-dimensional instructional materials.

C. Projector — correct. A digital or multimedia projector directly connects to computing devices to support ICT-enabled teaching.

D. Black Board — incorrect. A conventional blackboard is a traditional non-electronic display board.
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Question 8
In the context of MOOCs in Higher Education in India, which of the following are CORRECT?

A. They are learner-centric
B. They can be delivered only through SWAYAM portal
C. They can benefit large number of learners
D. They can be accessed anytime, anywhere and any number of times.
E. All MOOCs are for earning credit

Choose the correct answer from the options given below:
1. AA & D Only
2. BC & D Only
3. CA, B & E Only
4. DA, C & D Only
Answer: (D) A, C & D Only
Explanation
MOOCs are massive, open, learner-centric online courses accessible to a broad audience anytime and anywhere.

Evaluation of the statements:

A. They are learner-centric — correct. Learners control their own pace, schedule, and learning pathway.

B. They can be delivered only through SWAYAM portal — incorrect. While SWAYAM is India national MOOC platform, MOOCs are also offered through numerous other international and institutional portals such as Coursera, edX, and university LMS platforms.

C. They can benefit large number of learners — correct. The Massive aspect of MOOCs enables thousands of learners to enroll simultaneously.

D. They can be accessed anytime, anywhere and any number of times — correct. Asynchronous delivery allows flexible repeated access across diverse geographic locations.

E. All MOOCs are for earning credit — incorrect. Many MOOCs are non-credit courses taken purely for self-enrichment, professional development, or audit.

A. A & D Only — incorrect. It omits valid statement (C).

B. C & D Only — incorrect. It omits valid statement (A).

C. A, B & E Only — incorrect. Statements (B) and (E) are both false.

D. A, C & D Only — correct. Statements (A), (C), and (D) accurately reflect the core features of MOOCs.
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Question 9
Which of the following is considered as the highest scale in measurement?
1. ANominal
2. BOrdinal
3. CInterval
4. DRatio
Answer: (D) Ratio
Explanation
The ratio scale is the highest level of measurement because it includes a true absolute zero and supports all arithmetic operations.

Hierarchy of Stevens scales of measurement from lowest to highest:

Nominal scale (lowest) — classifies data into mutually exclusive categories with no order (such as gender or nationality)

Ordinal scale — introduces ranking or relative order between categories, but differences between ranks are not uniform (such as Likert scales)

Interval scale — features meaningful equal intervals between numbers, but lacks a true absolute zero (such as Celsius temperature)

Ratio scale (highest) — incorporates equal intervals and a true absolute zero point representing the complete absence of the measured attribute, enabling meaningful multiplicative ratios

A. Nominal — incorrect. Nominal is the simplest and lowest level of measurement.

B. Ordinal — incorrect. Ordinal ranks items but lacks equal intervals and absolute zero.

C. Interval — incorrect. Interval has equal intervals but no true zero.

D. Ratio — correct. It contains all properties of the previous scales plus an absolute zero point.
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Question 10
In which of the following methods of teaching, the student has to find out the answer to his/her own problem by unaided efforts?
1. ACase-study method
2. BHeuristic method
3. CFlipped classroom method
4. DDemonstration method
Answer: (B) Heuristic method
Explanation
The heuristic method places the student in the role of an independent discoverer who finds solutions through unaided effort.

Key characteristics of this teaching method:

Originated by Professor H. E. Armstrong from the Greek word heuriskein (meaning to discover)

Encourages self-reliance, scientific inquiry, and independent problem-solving

The teacher acts as a facilitator while the student investigates and discovers facts independently

A. Case-study method — incorrect. While student-centered, case studies involve guided analysis of real-world scenarios rather than completely unaided discovery.

B. Heuristic method — correct. The fundamental objective is to place learners in the position of original discoverers who solve problems by their own unaided efforts.

C. Flipped classroom method — incorrect. This model reverses instruction by introducing content at home and practicing in class under teacher supervision.

D. Demonstration method — incorrect. This is a teacher-dominated method where the instructor demonstrates an experiment or procedure to the class.
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Question 11
A systematic review of literature adopts
1. AExplicit procedures
2. BImplicit procedures
3. CPersonal-choice procedures
4. DPeer-suggested procedures
Answer: (A) Explicit procedures
Explanation
A systematic literature review uses explicit, transparent, and reproducible methods to identify, select, and critically appraise relevant research.

Key features of systematic reviews:

Follow pre-defined protocols with explicit search strategies and inclusion criteria (such as PRISMA guidelines)

Minimize researcher bias and subjectivity in literature selection

Enable other researchers to audit or replicate the review process

A. Explicit procedures — correct. Transparent and explicit protocols are the hallmark of a systematic literature review.

B. Implicit procedures — incorrect. Implicit methods lack transparency and introduce subjective bias.

C. Personal-choice procedures — incorrect. Relying on personal choice characterizes unsystematic, narrative literature reviews.

D. Peer-suggested procedures — incorrect. Informal peer suggestions do not constitute a rigorous, systematic review methodology.
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Question 12
A major focus in quantitative research is on
1. AHistoricity
2. BCausality
3. CSocial reflections
4. DCreating an artificial environment
Answer: (B) Causality
Explanation
Establishing causality between independent and dependent variables through measurement and statistical testing is the primary aim of quantitative research.

Methodological contrasts:

Quantitative research — prioritizes causal explanation, hypothesis testing, generalizability, and empirical measurement

Qualitative and historical research — focuses on historicity, lived experiences, contextual depth, and social reflections

A. Historicity — incorrect. This is the domain of historical and archival research.

B. Causality — correct. Determining cause-and-effect relationships is a defining objective of quantitative methodologies.

C. Social reflections — incorrect. Interpretive social reflections belong to qualitative paradigms.

D. Creating an artificial environment — incorrect. While some experiments use laboratory settings, quantitative research is not defined by artificial environments.
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Question 13
Which of the following are useful tips in preparing questions for a structured interview?

A. Introductory questions should be related to pleasantries
B. Introductory questions should be related to the research topic
C. Questions can be grouped, if the list of questions is long
D. General questions should precede specific questions
E. Repeat the personal questions again and again to test the truthfulness of the reponses of the interviewee

Choose the correct answer from the options given below:
1. AA, B, C Only
2. BA, C, D Only
3. CB, C, D Only
4. DA, D, E Only
Answer: (C) B, C, D Only
Explanation
Effective structured interview design maintains topical focus, groups extensive questions logically, and progresses from general to specific inquiries.

Evaluation of the tips:

A. Introductory questions should be related to pleasantries — not a standard research rule. Structured interviews prioritize topic relevance and standardization to avoid unnecessary variation.

B. Introductory questions should be related to the research topic — correct. Early questions should orient the interviewee toward the subject matter and establish research context.

C. Questions can be grouped, if the list of questions is long — correct. Thematic grouping prevents respondent fatigue and keeps the interview logically structured.

D. General questions should precede specific questions — correct. Moving from broad to narrow questions (funnel technique) helps respondents ease into specific details.

E. Repeat the personal questions again and again to test truthfulness — incorrect. Repeatedly grilling respondents on personal items causes irritation, breaks rapport, and introduces response bias.

A. A, B, C Only — incorrect. Statement A is not a recommended guideline.

B. A, C, D Only — incorrect. Statement A is excluded in favor of topic-focused introductions.

C. B, C, D Only — correct. Statements B, C, and D constitute standard best practices in structured interview design.

D. A, D, E Only — incorrect. Statements A and E are unscientific practices.
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Question 14
Which of the following are types of error in survey research?

A. Sample error
B. Source error
C. Observational error
D. Data collection error
E. Data processing error

Choose the correct answer from the options given below:
1. AA, B, C Only
2. BB, C, D Only
3. CB, D, E Only
4. DA, D, E Only
Answer: (D) A, D, E Only
Explanation
Errors in survey research are divided into sampling errors and non-sampling errors, which include data collection and data processing errors.

Classification of survey research errors:

A. Sample error (Sampling error) — arises when characteristics of a sample differ systematically or randomly from the true population parameters.

D. Data collection error — non-sampling error occurring during fieldwork, such as interviewer bias, questionnaire misinterpretation, or recording mistakes.

E. Data processing error — non-sampling error occurring during data entry, coding, editing, and data tabulation.

Items B (source error) and C (observational error) are not recognized standard categories within survey methodology taxonomies.

A. A, B, C Only — incorrect. Neither source error nor observational error is a standard survey research category.

B. B, C, D Only — incorrect. It includes invalid category B and omits sample error.

C. B, D, E Only — incorrect. It includes B and omits A.

D. A, D, E Only — correct. Sampling errors, data collection errors, and data processing errors are the standard categories in survey research.
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Question 15
Given below are two statements:

Statement I: Often qualitative studies provide too many details of the setting that are investigated.
Statement II: Critics point out that qualitative research suffers from the issue of replication.

In the light of the above statements, choose the correct answer from the options given below:
1. ABoth Statement I and Statement II are true
2. BBoth Statement I and Statement II are false
3. CStatement I is true but Statement II is false
4. DStatement I is false but Statement II is true
Answer: (A) Both Statement I and Statement II are true
Explanation
Qualitative research emphasizes thick descriptive detail of settings and faces well-known methodological challenges regarding replicability.

Evaluation of the statements:

Statement I is true — qualitative studies (such as ethnography and participant observation) aim for 'thick description', frequently providing extensive and granular details of the social environment and participants. Critics often argue that this leads to an overwhelming accumulation of trivial contextual details.

Statement II is true — because qualitative research relies on unstructured observations, unique social contexts, and the personal interpretive lens of the researcher, other researchers find it difficult or impossible to replicate the exact study to verify findings.

A. Both Statement I and Statement II are true — correct. Both statements represent standard methodological characteristics and critiques of qualitative research.

B. Both Statement I and Statement II are false — incorrect. Both assertions are verified principles in social research methodology.

C. Statement I is true but Statement II is false — incorrect. The issue of replication is a primary critique of qualitative designs.

D. Statement I is false but Statement II is true — incorrect. Qualitative research is known for detailed contextual reporting.
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Question 16
In communication, a high order of inference drawn from experience, direct or indirect, is responsible for
1. AGeneralisation
2. BSimplification
3. CAbstraction
4. DStrong reaction
Answer: (C) Abstraction
Explanation
Abstraction is the cognitive and communicative process of deriving generalized, higher-order inferences from concrete direct or indirect experiences.

Key distinctions in communication theory:

Abstraction — the mental process of moving from specific sensory observations to conceptual frameworks and higher-level meaning

Generalisation — extending a specific observation to a broader class, which is a component rather than the overarching process of higher-order inferencing

Simplification — reducing complexity, which does not necessarily involve higher-order inferences

A. Generalisation — incorrect. While generalization occurs, abstraction is the higher-order conceptual process responsible for deriving meaning from experiential data.

B. Simplification — incorrect. Simplification merely reduces detail rather than drawing higher-order conceptual inferences.

C. Abstraction — correct. It describes the synthesis of experiential observations into higher-level conceptual understanding.

D. Strong reaction — incorrect. An emotional or behavioral reaction is not a logical or conceptual inference.
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Question 17
In which context, the true effects of mass media communication on mass audience can be under stood?
1. AEconomic
2. BSocial
3. CPolitical
4. DSpiritual
Answer: (B) Social
Explanation
The true impact of mass media on an audience can only be evaluated within the social context where communication and cultural interactions occur.

Context in mass communication:

Media messages interact with existing social structures, community values, cultural norms, and interpersonal networks

While media affects politics and economics, those effects are mediated through social institutions and human relationships

The broader social context determines how audiences interpret, adopt, or resist media messages

A. Economic — incorrect. Economic impact captures financial transactions, not the holistic communicative effect on audiences.

B. Social — correct. The social environment provides the comprehensive framework within which audience attitudes, behaviors, and collective perceptions are formed.

C. Political — incorrect. Political context reflects governance and ideology, which is a sub-component of the wider social fabric.

D. Spiritual — incorrect. Spiritual context relates to individual faith and transcendent beliefs.
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Question 18
When it comes to knowledge-sharing, the important aspects of communication are:

A. The supply side
B. The demand side
C. The policy currents
D. The push and pull of policy makers
E. The choice of filters

Choose the correct answer from the options given below:
1. AA, B, C Only
2. BB, C, D Only
3. CC, D, E Only
4. DA, D, E Only
Answer: (A) A, B, C Only
Explanation
Effective knowledge-sharing communication encompasses the generation of knowledge (supply side), user needs (demand side), and the institutional context (policy currents).

Key dimensions in knowledge-sharing communication frameworks:

A. The supply side — creation, synthesis, and packaging of credible research findings and informational resources.

B. The demand side — understanding audience needs, receptivity, informational readiness, and absorptive capacity.

C. The policy currents — institutional environments, regulatory priorities, and broader social trends that determine which knowledge is valued and acted upon.

Items D and E are localized administrative or personal preferences rather than the primary tripartite structural dimensions.

A. A, B, C Only — correct. Supply, demand, and policy context form the foundational triad of knowledge-sharing communication.

B. B, C, D Only — incorrect. It omits the vital supply side (A).

C. C, D, E Only — incorrect. It omits both supply and demand dimensions.

D. A, D, E Only — incorrect. It omits demand and policy currents.
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Question 19
Given below are two statements:

Statement I: Communication and socialisation are two non-convergent dimensions of any modern society.
Statement II: Communication enables the promotion of values that facilitate the process of enculturisation of people in a society.

In the light of the above statements, choose the correct answer from the options given below:
1. ABoth Statement I and Statement II are true
2. BBoth Statement I and Statement II are false
3. CStatement I is true but Statement II is false
4. DStatement I is false but Statement II is true
Answer: (D) Statement I is false but Statement II is true
Explanation
Communication and socialization are deeply interdependent and convergent processes in human society.

Evaluation of the statements:

Statement I is false — communication and socialization converge directly. Socialization is the lifelong process of internalizing societal norms, which occurs predominantly through interpersonal and mass communication. Calling them non-convergent contradicts core sociological and communication theory.

Statement II is true — enculturation is the process through which people learn the values, behaviors, and cultural traditions of their group. Communication is the primary vehicle for transmitting and reinforcing these cultural values across generations.

A. Both Statement I and Statement II are true — incorrect. Statement I is false because socialization and communication strongly converge.

B. Both Statement I and Statement II are false — incorrect. Statement II is an established sociological fact.

C. Statement I is true but Statement II is false — incorrect. Statement I is false and Statement II is true.

D. Statement I is false but Statement II is true — correct. It recognizes the convergence of communication and socialization while affirming communication role in enculturation.
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Question 20
Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.

Assertion (A): Communication has the power to persuade, inform and disinform.
Reason (R): The process of propaganda makes the line of distinction transparent between its elements for being persuasive.

In the light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth A and R are true and R is the correct explanation of A
2. BBoth A and R are true but R is NOT the correct explanation of A
3. CA is true but R is false
4. DA is false but R is true
Answer: (C) A is true but R is false
Explanation
Communication can persuade and misinform, but propaganda operates by blurring distinctions rather than making them transparent.

Evaluation of the statements:

Assertion (A) is true — communication possesses the dual capacity to educate and inform, persuade audiences toward specific viewpoints, or deliberately mislead through disinformation.

Reason (R) is false — propaganda succeeds by obscuring and blurring the line between fact, opinion, emotional manipulation, and disinformation. If the distinction were transparent, the audience would immediately identify the manipulation and resist persuasion.

A. Both A and R are true and R is the correct explanation of A — incorrect. Reason (R) is false.

B. Both A and R are true but R is NOT the correct explanation of A — incorrect. Reason (R) is false.

C. A is true but R is false — correct. Communication influences through information and disinformation, while propaganda relies on opaque rather than transparent boundaries.

D. A is false but R is true — incorrect. Assertion (A) is true.
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Question 21
There are three numbers in the ratio of 3 : 5 : 7 and the sum of these numbers is 975. Find the three numbers.
1. A195, 325, 455
2. B325, 195, 455
3. C195, 310, 470
4. D205, 315, 455
Answer: (A) 195, 325, 455
Explanation
The three numbers in the ratio 3 : 5 : 7 summing to 975 are 195, 325, and 455.

Calculation steps:

Let the numbers be 3x, 5x, and 7x.

Sum of the ratio terms:
3x + 5x + 7x = 15x
15x = 975
x = 975 / 15 = 65

Calculate each number:

First number = 3 * 65 = 195

Second number = 5 * 65 = 325

Third number = 7 * 65 = 455

A. 195, 325, 455 — correct. These values match the 3 : 5 : 7 proportion and sum exactly to 975.

B. 325, 195, 455 — incorrect. The numbers are ordered 5 : 3 : 7 rather than 3 : 5 : 7.

C. 195, 310, 470 — incorrect. The ratio between 310 and 195 does not equal 5 : 3.

D. 205, 315, 455 — incorrect. These numbers do not form a 3 : 5 : 7 ratio.
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Question 22
The simple interest accrued on a sum of certain principal is Rs. 1200 in 4 years at the rate of 8% per annum. What would be the simple interest accrued on thrice of that principle at the rate of 6% per annum in 3 years?
1. A2150
2. B2050
3. C2025
4. D2100
Answer: (C) 2025
Explanation
The simple interest accrued on thrice the principal at 6% for 3 years is Rs. 2025.

Calculation steps:

Find the initial principal (P):
SI = (P * R * T) / 100
1200 = (P * 8 * 4) / 100
1200 = 32P / 100
P = (1200 * 100) / 32 = 3750

Calculate interest on the new terms:
New principal (P') = 3 * P = 3 * 3750 = 11250
New rate (R') = 6% per annum
New time (T') = 3 years
New SI = (11250 * 6 * 3) / 100 = (11250 * 18) / 100 = 2025

A. 2150 — incorrect.

B. 2050 — incorrect.

C. 2025 — correct. Simple interest on Rs. 11250 at 6% over 3 years equals Rs. 2025.

D. 2100 — incorrect.
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Question 23
Find the next term in the following series: 1, 2, 4, 6, 7, 18, 10, 54, ?
1. A162
2. B13
3. C64
4. D72
Answer: (B) 13
Explanation
The next term is 13, following an alternating series with separate arithmetic and geometric patterns.

Break the sequence into two interleaved sub-series:

Odd-positioned terms (1st, 3rd, 5th, 7th, 9th):
1, 4, 7, 10, ...
Rule: add 3 to each successive term (1 + 3 = 4, 4 + 3 = 7, 7 + 3 = 10, 10 + 3 = 13)

Even-positioned terms (2nd, 4th, 6th, 8th):
2, 6, 18, 54, ...
Rule: multiply by 3 (2 * 3 = 6, 6 * 3 = 18, 18 * 3 = 54)

The 9th term belongs to the odd-positioned sub-series:
10 + 3 = 13

A. 162 — incorrect. This would be the 10th term (54 * 3 = 162), not the 9th term.

B. 13 — correct. It continues the arithmetic sequence of adding 3 to odd-indexed terms.

C. 64 — incorrect.

D. 72 — incorrect.
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Question 24
In a certain coding language, if 'CRICKET' is coded as 2632479, 'ROCKET' is coded as 612479, and 'KETTLE' is coded as 479907, then how 'LOCKER' shall be coded in that langauge?
1. A102674
2. B021647
3. C120764
4. D012476
Answer: (D) 012476
Explanation
The word 'LOCKER' is coded as 012476 by matching individual letter assignments from the given words.

Extract letter-to-digit mappings from the examples:

From CRICKET (2 6 3 2 4 7 9): C=2, R=6, I=3, K=4, E=7, T=9

From ROCKET (6 1 2 4 7 9): R=6, O=1, C=2, K=4, E=7, T=9 (confirming O=1)

From KETTLE (4 7 9 9 0 7): K=4, E=7, T=9, L=0 (confirming L=0)

Now code LOCKER:

L = 0

O = 1

C = 2

K = 4

E = 7

R = 6
Resulting code: 012476

A. 102674 — incorrect. It starts with 1 instead of 0 for L.

B. 021647 — incorrect. It scrambles the digits corresponding to O, C, and K.

C. 120764 — incorrect. It misidentifies the code for L.

D. 012476 — correct. Each letter precisely maps to its corresponding deduced digit.
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Question 25
On allowing two successive discounts of 20% and 15%, the selling price of an article becomes Rs. 3060. What is the marked price of the article?
1. A4000
2. B4100
3. C4200
4. D4500
Answer: (D) 4500
Explanation
The marked price of the article is Rs. 4500.

Calculation steps:
Let the marked price be MP.
Successive discounts of 20% and 15% are applied:
Price after first discount = MP * (1 - 0.20) = 0.80 * MP
Price after second discount = 0.80 * MP * (1 - 0.15) = 0.80 * 0.85 * MP = 0.68 * MP

Set equal to the given selling price:
0.68 * MP = 3060
MP = 3060 / 0.68 = 306000 / 68 = 4500

A. 4000 — incorrect.

B. 4100 — incorrect.

C. 4200 — incorrect.

D. 4500 — correct. Applying a 20% discount on 4500 gives 3600, and a subsequent 15% discount on 3600 yields 3060.
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Question 26
If 'some men are vegetarians' is given as false, which of the following can be inferred to be true from it?

A. All men are vegetarians
B. No men are vegetarians
C. Some men are not vegetarians
D. All non-vegetarians are men

Choose the correct answer from the options given below:
1. AA, B and C Only
2. BB, C and D Only
3. CB and C Only
4. DC Only
Answer: (C) B and C Only
Explanation
When an I-proposition is false, both its contradictory E-proposition and its subcontrary O-proposition are necessarily true.

Application of the classical Square of Opposition:

Given proposition: 'Some men are vegetarians' is a Particular Affirmative (I proposition), stated as FALSE.

B. 'No men are vegetarians' (E proposition) — the contradictory of I is E. When I is false, E must be TRUE.

C. 'Some men are not vegetarians' (O proposition) — since E is true ('No men are vegetarians'), its subaltern O ('Some men are not vegetarians') must also be TRUE. In addition, subcontraries (I and O) cannot both be false simultaneously.

A. 'All men are vegetarians' (A proposition) — contradictory of O and superaltern of I. If I is false, A is FALSE.

D. 'All non-vegetarians are men' — does not logically follow from the given proposition.

Thus, only B and C can be inferred to be true.

A. A, B and C Only — incorrect. 'All men are vegetarians' is false.

B. B, C and D Only — incorrect. Statement D does not follow.

C. B and C Only — correct. By contradictory opposition E is true, and by subalternation or subcontrariety O is true.

D. C Only — incorrect. It fails to include proposition B.
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Question 27
For which of the following forms of categorical propositions conversion is valid?

A. Some S is P
B. Some S is not P
C. No S is P
D. All S is P

Choose the correct answer from the options given below:
1. AA, B, C, D, Only
2. BA, C and D only
3. CB, C and D Only
4. DA, B and D Only
Answer: (B) A, C and D only
Explanation
In formal categorical logic, conversion is valid for A, E, and I propositions, but invalid for O propositions.

Rules of conversion by proposition type:

A. 'Some S is P' (I proposition) — simple conversion is valid. 'Some S is P' converts validly to 'Some P is S'.

B. 'Some S is not P' (O proposition) — conversion is invalid. 'Some S is not P' does not guarantee that 'Some P is not S' (for example, 'Some mammals are not dogs' is true, but 'Some dogs are not mammals' is false).

C. 'No S is P' (E proposition) — simple conversion is valid. 'No S is P' converts validly to 'No P is S'.

D. 'All S is P' (A proposition) — conversion by limitation (per accidens) is valid. 'All S is P' converts validly to 'Some P is S'.

Thus, conversion applies validly to A, C, and D.

A. A, B, C, D, Only — incorrect. Conversion of O propositions is invalid.

B. A, C and D only — correct. Traditional logic permits simple conversion for E and I, and conversion by limitation for A.

C. B, C and D Only — incorrect. It includes invalid proposition (B).

D. A, B and D Only — incorrect. It includes invalid proposition (B) and omits valid proposition (C).
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Question 28
Depending on the intention which of the following logical informal fallacies may be involved in the following argument - 'I am shocked to hear you preaching atheism. Does your father know you believe that?'

A. Appeal to authority
B. Appeal to emotion
C. Appeal to majority
D. Appeal to force

Choose the correct answer from the options given below:
1. AA and D Only
2. BA and B Only
3. CB and D Only
4. DB and C Only
Accepted answers: (A) A and D Only, (C) B and D Only
Explanation
The speaker rhetorical question can function either as an appeal to emotion or as an implied appeal to force.

Analysis of the informal fallacies:

B. Appeal to emotion (argumentum ad misericordiam / guilt / shame) — the reaction 'I am shocked' appeals to guilt, shock, and social disapproval rather than presenting logical arguments against atheism.

D. Appeal to force (argumentum ad baculum) — asking 'Does your father know you believe that?' implies a veiled threat of paternal retribution, punishment, or withdrawal of support to force abandonment of the belief.

A. Appeal to authority — not present, as no authoritative expert or text is cited to prove or disprove the premise.

C. Appeal to majority — not present, as popular consensus or widespread belief is not cited.

A. A and D Only — incorrect. No appeal to authority is made.

B. A and B Only — incorrect. No authoritative expert is invoked.

C. B and D Only — correct. The question leverages emotional shock and the implied threat of force or punishment.

D. B and C Only — incorrect. No appeal to majority opinion is made.
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Question 29
Given below are two statements:

Statement I: In svārtha Anumāna (inference for oneself) we do not require a formal statement of the different members of inference, according to Nyāya view of inference.
Statement II: Svārtha Anumāna is a psychological process.

In the light of the above statements, choose the correct answer from the options given below:
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (A) Both Statement I and Statement II are correct
Explanation
In Nyaya epistemology, svarthanumana is an internal psychological process of knowing that requires no formal verbal syllogism.

Evaluation of the statements:

Statement I is correct — when inferring something for oneself (svarthanumana), one does not need to articulate the five formal steps of the Nyaya syllogism (pratijna, hetu, udaharana, upanaya, nigamana). Formal statement is required only in pararthanumana (inference for convincing others).

Statement II is correct — svarthanumana is a purely cognitive, psychological process wherein an individual perceives a sign (linga), recalls the invariable relation (vyapti), and arrives at knowledge internally.

A. Both Statement I and Statement II are correct — correct. Both statements accurately describe the internal, psychological nature of svarthanumana in Nyaya logic.

B. Both Statement I and Statement II are incorrect — incorrect. Both statements are canonical Nyaya principles.

C. Statement I is correct but Statement II is incorrect — incorrect. Statement II is true.

D. Statement I is incorrect but Statement II is correct — incorrect. Statement I is true.
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Question 30
Given below are two statements:

Statement I: Aristotelian syllogism is essentially verbalistic.
Statement II: Nyaya system recognizes the fact that the verbal form is the essence of inference.

In the light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (C) Statement I is correct but Statement II is incorrect
Explanation
Aristotelian syllogism is formal and verbalistic, whereas in the Nyaya system verbal expression is only an instrument for convincing others rather than the essence of inference.

Evaluation of the statements:

Statement I is correct — Western or Aristotelian logic is formal and verbalistic. It focuses on the formal relationships between linguistic propositions, terms, and verbal validity.

Statement II is incorrect — Nyaya epistemology distinguishes between inference for oneself (svarthanumana) and inference for others (pararthanumana). For oneself, inference is an internal cognitive and psychological process that requires no verbal expression. Verbal form is needed solely to communicate an inference to others, so verbal formulation is not the essence of inference in Nyaya.

A. Both Statement I and Statement II are correct — incorrect. Statement II contradicts Nyaya logic.

B. Both Statement I and Statement II are incorrect — incorrect. Statement I is accurate.

C. Statement I is correct but Statement II is incorrect — correct. Aristotelian logic is verbalistic, while Nyaya views inference as primarily cognitive.

D. Statement I is incorrect but Statement II is correct — incorrect. Statement I is true and Statement II is false.
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Question 31
Miss Reena has been appointed by the Cyber Security Cell of Mumbai to break into the website of a terrorist organization to extract information. What among the following is a suitable description of Reena's profile?
1. AHactivist
2. BEthical Hacker
3. CTroller
4. DBlack hat hacker
Answer: (B) Ethical Hacker
Explanation
An ethical hacker is an authorized cybersecurity specialist hired or appointed by an official agency to penetrate systems for lawful, security-related purposes.

Distinctions among hacker profiles:

Ethical Hacker (White Hat) — legally authorized professionals who find vulnerabilities, extract counter-intelligence, or defend networks on behalf of governments, law enforcement, or organizations

Hacktivist — an individual or group hacking systems to advance a personal, political, or social cause without official legal authority

Black hat hacker — an unauthorized individual who breaches computer systems maliciously for personal gain or damage

Troller — someone who deliberately posts disruptive or provocative messages online to provoke emotional reactions

A. Hactivist — incorrect. Hacktivists act independently for social or political causes, not on official government contracts.

B. Ethical Hacker — correct. Reena appointment by an official Cyber Security Cell gives her legal mandate to perform penetration and intelligence gathering.

C. Troller — incorrect. Internet trolling is disruptive forum behavior, not network penetration.

D. Black hat hacker — incorrect. Black hat hackers act maliciously and without legal authorization.
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Question 32
Given below are two statements:

Statement I: 8 megabytes = 2 13 gigabytes
Statement II: The decimal equivalent of the binary number (11101.101) 2 is (29.625) 10 .

In the light of the above statements, choose the correct answer from the options given below:
1. ABoth Statement I and Statement II are true
2. BBoth Statement I and Statement II are false
3. CStatement I is true but Statement II is false
4. DStatement I is false but Statement II is true
Answer: (D) Statement I is false but Statement II is true
Explanation
Statement I is mathematically false, whereas Statement II correctly converts binary 11101.101 into decimal 29.625.

Evaluation of the statements:

Statement I is false. In binary digital storage:
1 Gigabyte = 2^10 Megabytes = 1024 Megabytes
8 Megabytes = 2^3 Megabytes
Expressed in Gigabytes:
8 MB = 2^3 / 2^10 GB = 2^(-7) GB
This cannot equal 2^13 GB, which equals 8192 Gigabytes.

Statement II is true. Convert (11101.101)2 to base 10:
Integer part:
(1 * 2^4) + (1 * 2^3) + (1 * 2^2) + (0 * 2^1) + (1 * 2^0) = 16 + 8 + 4 + 0 + 1 = 29
Fractional part:
(1 * 2^-1) + (0 * 2^-2) + (1 * 2^-3) = 0.5 + 0 + 0.125 = 0.625
Total:
29 + 0.625 = 29.625

A. Both Statement I and Statement II are true — incorrect. Statement I is false.

B. Both Statement I and Statement II are false — incorrect. Statement II is correct.

C. Statement I is true but Statement II is false — incorrect. Statement I is false and Statement II is true.

D. Statement I is false but Statement II is true — correct. Statement I misstates the memory conversion, while Statement II performs an exact binary-to-decimal conversion.
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Question 33
Which of the following statements are correct?
Principal components of a CPU in a computer include:

A. The Solid State Drive (SSD) that stores data perristently, typically using flash memory
B. The Arithmetic-Logic Unit (ALU) that performs arithmetic and logic operations
C. Processor registers that supply operands to the ALU and stores the results of ALU operation
D. The Control Unit (CU) that orchestrates the fetching (from memory), decoding and execution of instructions

Choose the correct answer from the options given below:
1. AA, B and C Only
2. BB, C and D Only
3. CB and C Only
4. DA and D Only
Answer: (B) B, C and D Only
Explanation
The principal components internal to a Central Processing Unit are the Control Unit, the Arithmetic-Logic Unit, and internal registers.

Evaluation of the components:

A. Solid State Drive (SSD) — not a CPU component. An SSD is secondary, non-volatile storage connected via external bus interfaces like PCIe or SATA.

B. Arithmetic-Logic Unit (ALU) — CPU component. It executes elementary mathematical operations and logical evaluations.

C. Processor registers — CPU component. These high-speed memory cells inside the CPU store immediate operands and computation results.

D. Control Unit (CU) — CPU component. It manages the instruction execution cycle by directing the fetch, decode, and execute stages.

A. A, B and C Only — incorrect. SSD is secondary storage outside the CPU.

B. B, C and D Only — correct. The ALU, processor registers, and CU constitute the core internal architecture of a CPU.

C. B and C Only — incorrect. It omits the Control Unit (D).

D. A and D Only — incorrect. SSD is secondary storage.
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Question 34
Which of the following statements are correct regarding VoLTE?

A. VoLTE stands for 'Voice over Long Term Evaluation'
B. It is a digital packet voice service delivery over IP via an LTE access network
C. Provides more efficient use of spectrum than traditional voice
D. Eliminates the need to have voice on one network and data on another network

Choose the correct answer from the options given below:
1. AA, B, C and D Only
2. BB, C and D Only
3. CA, B and C Only
4. DA, C and D Only
Answer: (B) B, C and D Only
Explanation
VoLTE delivers high-definition packet-based voice services over LTE access networks, unifying voice and data traffic.

Evaluation of the statements:

A. VoLTE stands for 'Voice over Long Term Evaluation' — incorrect. VoLTE stands for 'Voice over Long Term Evolution'.

B. It is a digital packet voice service delivery over IP via an LTE access network — correct. VoLTE routes voice calls as IP packets over LTE rather than using legacy circuit-switched networks.

C. Provides more efficient use of spectrum than traditional voice — correct. Packetized IP transmission frees up bandwidth and utilizes spectrum significantly more efficiently than 2G/3G circuit switching.

D. Eliminates the need to have voice on one network and data on another network — correct. Traditional LTE networks required circuit-switched fallback (CSFB) to 2G/3G for voice calls, whereas VoLTE handles both voice and data on a single LTE network.

A. A, B, C and D Only — incorrect. Statement A has an incorrect expansion for the acronym.

B. B, C and D Only — correct. Statements B, C, and D are accurate technical facts about VoLTE.

C. A, B and C Only — incorrect. Statement A is false.

D. A, C and D Only — incorrect. Statement A is false.
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Question 35
What is the concept of International Net Neutrality?
1. AImposed limitations for end-to-end Internet access
2. BBroadband service providers can show preference to content
3. CUnimpeded end.to-end Internet access and usage
4. DAll content that flows throughout the Internet should not be treated equally.
Answer: (C) Unimpeded end.to-end Internet access and usage
Explanation
Net neutrality mandates that Internet service providers treat all data traffic equally, ensuring unimpeded end-to-end access without discrimination.

Core principles of net neutrality:

No blocking of lawful content, applications, or services

No throttling or slowing down data transmission based on source or type

No paid prioritization or preferred fast lanes for specific content providers

A. Imposed limitations for end-to-end Internet access — incorrect. Net neutrality opposes artificial limitations or blocking.

B. Broadband service providers can show preference to content — incorrect. Showing preference violates the core neutrality principle.

C. Unimpeded end.to-end Internet access and usage — correct. Net neutrality ensures equal, open, and unrestricted delivery of all online content.

D. All content that flows throughout the Internet should not be treated equally. — incorrect. The foundational premise of net neutrality is equal treatment of all data traffic.
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Question 36
Given below are two statements:

Statement I: All potential pollutants are synthetic chemicals.
Statement II: Many of the emerging contaminants have been observed to bioaccumulate in wildlife and humans.

In the light of the above statements, choose the correct answer from the options given below:
1. ABoth Statement I and Statement II are true
2. BBoth Statement I and Statement II are false
3. CStatement I is true but Statement II is false
4. DStatement I is false but Statement II is true
Answer: (D) Statement I is false but Statement II is true
Explanation
Many natural substances act as pollutants, while emerging synthetic contaminants widely bioaccumulate in living organisms.

Evaluation of the statements:

Statement I is false — not all pollutants are synthetic or man-made chemicals. Naturally occurring elements and materials, such as arsenic, fluoride, radon gas, volcanic ash, heavy metals in geological formations, and particulate matter from wildfires, are potent environmental pollutants.

Statement II is true — emerging contaminants such as per- and polyfluoroalkyl substances (PFAS), microplastics, pharmaceutical residues, and endocrine disruptors resist environmental degradation and bioaccumulate in trophic food webs, reaching detectable concentrations in wildlife and human tissues.

A. Both Statement I and Statement II are true — incorrect. Statement I is factually false.

B. Both Statement I and Statement II are false — incorrect. Statement II is an established toxicological reality.

C. Statement I is true but Statement II is false — incorrect. Statement I is false and Statement II is true.

D. Statement I is false but Statement II is true — correct. It identifies natural pollutants while validating the bioaccumulation of emerging contaminants.
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Question 37
Typhoid fever, a water born disease is caused by
1. AVirus
2. BBacteria
3. CProtozoan
4. DHelminth
Answer: (B) Bacteria
Explanation
Typhoid fever is a waterborne infection caused by the bacterium Salmonella enterica serotype Typhi.

Etiology and transmission:

Caused by Salmonella Typhi, a Gram-negative, flagellated, rod-shaped bacterium

Transmitted through the fecal-oral route, primarily via contaminated drinking water or food

Characterized by prolonged high fever, abdominal pain, weakness, and gastrointestinal symptoms

A. Virus — incorrect. Viral waterborne diseases include Hepatitis A, Polio, and Rotavirus.

B. Bacteria — correct. Typhoid fever is caused by the bacterial pathogen Salmonella Typhi.

C. Protozoan — incorrect. Protozoan waterborne diseases include amoebiasis and giardiasis.

D. Helminth — incorrect. Helminths are parasitic worms causing conditions like schistosomiasis.
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Question 38
Given below are two statements:

Statement I: Increasingly, photovoltaic panels are being used to supplement electrical energy from the power grid.
Statement II: One issue with grid-connected photovoltaics is that PV cells produce Alternating Current (AC) whereas powergrids use Direct Current (DC)

In the light of the above statements, choose the correct answer from the options given below:
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (C) Statement I is correct but Statement II is incorrect
Explanation
Photovoltaic panels are widely used to supplement grid electricity, but PV cells produce DC while electrical grids use AC.

Evaluation of the statements:

Statement I is correct — worldwide and in India, grid-interactive rooftop and utility-scale solar photovoltaic panels are increasingly deployed to supplement and decarbonize grid power supply.

Statement II is incorrect — solar photovoltaic cells generate Direct Current (DC) via the photovoltaic effect, whereas utility power grids operate on Alternating Current (AC). An inverter is required to convert the DC output of the solar panels into AC before it can be fed into the power grid. Statement II inverts this relationship.

A. Both Statement I and Statement II are correct — incorrect. Statement II gets the current types backwards.

B. Both Statement I and Statement II are incorrect — incorrect. Statement I is an established energy fact.

C. Statement I is correct but Statement II is incorrect — correct. Solar panels supplement the grid, but solar cells produce DC rather than AC.

D. Statement I is incorrect but Statement II is correct — incorrect. Statement I is true and Statement II is false.
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Question 39
Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.

Assertion (A): Chlorofluorocarbons (CFCs) are potent greenhouse gases.
Reason (R): CFCs have the ability to catalytically destroy ozone in stratosphere.

In the light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
2. BBoth (A) and (R) are correct but (R) is NOT the correct explanation of (A)
3. C(A) is correct but (R) is not correct
4. D(A) is not correct but (R) is correct
Answer: (B) Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)
Explanation
Both statements are scientifically accurate, but catalytic ozone depletion does not explain greenhouse warming potential.

Evaluation of the statements:

Assertion (A) is correct. CFCs strongly absorb infrared radiation in the atmospheric window (8 to 12 micrometers), making their global warming potential thousands of times greater than carbon dioxide.

Reason (R) is correct. In the stratosphere, ultraviolet photolysis of CFCs releases chlorine radicals that catalytically break down ozone molecules into oxygen.

Explanation check — the greenhouse effect occurs in the troposphere via infrared absorption. Catalytic ozone destruction is a distinct photochemical process occurring in the stratosphere. Thus, Reason (R) does not explain Assertion (A).

A. Both (A) and (R) are correct and (R) is the correct explanation of (A) — incorrect. Trapping infrared heat and catalytic ozone destruction are two distinct mechanisms.

B. Both (A) and (R) are correct but (R) is NOT the correct explanation of (A) — correct. Both assertions are true facts, but one does not cause the other.

C. (A) is correct but (R) is not correct — incorrect. Reason (R) is a proven scientific fact.

D. (A) is not correct but (R) is correct — incorrect. Assertion (A) is an established atmospheric fact.
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Question 40
Global warming can lead to/aggravate which of the following natural disasters?

A. Draught
B. Earthquake
C. Flood
D. Storm

Choose the correct answer from the options given below:
1. AA, B, C Only
2. BA, C, D Only
3. CB, C, D Only
4. DB, D Only
Answer: (B) A, C, D Only
Explanation
Global warming alters the hydrologic cycle and climate patterns, worsening droughts, floods, and storms, but does not drive tectonic earthquakes.

Climate impacts on extreme events:

A. Draught (Drought) — elevated temperatures increase soil evaporation and prolong dry spells, worsening droughts.

C. Flood — warmer air holds more water vapor (~7% per degree Celsius), producing more intense precipitation and flash flooding.

D. Storm — warmer sea surface temperatures supply heat energy that fuels more intense tropical cyclones and storms.

B. Earthquake — tectonic events caused by geological fault movements in the Earth's lithosphere, which are not driven or aggravated by atmospheric global warming.

A. A, B, C Only — incorrect. Earthquakes are tectonic rather than climate-driven disasters.

B. A, C, D Only — correct. Droughts, floods, and storms are meteorological phenomena intensified by global warming.

C. B, C, D Only — incorrect. It includes earthquakes and excludes droughts.

D. B, D Only — incorrect. It includes earthquakes.
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Question 41
In India, much of the Central Government expenditure on general higher education is routed through
1. ANatural Council of Teacher Education.
2. BAll India Council for Technical education.
3. CUniversity Grants Commission.
4. DNational Council for Educational Research and Training.
Answer: (C) University Grants Commission.
Explanation
The University Grants Commission (UGC) is the statutory body through which the Central Government channels funds and grants to general universities and colleges.

Roles of the listed bodies:

University Grants Commission (UGC) — established by an Act of Parliament in 1956 for the coordination, determination, and maintenance of standards in university education, routing central funds and developmental grants to universities

National Council for Teacher Education (NCTE) — regulates teacher education standards

All India Council for Technical Education (AICTE) — oversees planning and development of technical and management education

National Council of Educational Research and Training (NCERT) — assists school education curriculum and textbooks

A. Natural Council of Teacher Education. — incorrect. This agency regulates teacher training curricula.

B. All India Council for Technical education. — incorrect. AICTE specifically oversees technical and engineering disciplines.

C. University Grants Commission. — correct. UGC coordinates and disburses central funds for general higher education.

D. National Council for Educational Research and Training. — incorrect. NCERT focuses on school education.
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Question 42
According to current estimate, the gross enrolment ratio in Higher Education in India is around 27%, which is expected to be increased to _______ by the end of 2035.
1. A30%
2. B40%
3. C50%
4. D60%
Answer: (C) 50%
Explanation
The National Education Policy (NEP) 2020 targets a Gross Enrolment Ratio (GER) of 50% in higher education by 2035.

Key targets outlined in NEP 2020:

Increase GER in higher education including vocational education from 26.3% (2018) to 50% by 2035

Add 3.5 crore new seats in higher education institutions

A. 30% — incorrect. This is close to the baseline level around 2020 rather than the long-term policy goal.

B. 40% — incorrect.

C. 50% — correct. NEP 2020 explicitly sets 50% as the national target for higher education GER by 2035.

D. 60% — incorrect.
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Question 43
Given below are two statements:

Statement I: In India increasing access to higher education has been constrained by low completion rates at secondary education stage.
Statement II: By 2030, all multidisciplinary higher education institutions will be closed down.

In the light of the above statements, choose the correct answer from the options given below:
1. ABoth Statement I and Statement II are true
2. BBoth Statement I and Statement II are false
3. CStatement I is true but Statement II is false
4. DStatement I is false but Statement II is true
Answer: (C) Statement I is true but Statement II is false
Explanation
Secondary school dropouts constrain higher education enrollment, while national policy explicitly promotes multidisciplinary institutions rather than closing them.

Evaluation of the statements:

Statement I is true — dropouts and low retention rates at the secondary and higher secondary levels form a structural bottleneck that reduces the feeder pool eligible for higher education in India, as recognized in NEP 2020.

Statement II is false — NEP 2020 mandates that all higher education institutions become large, multidisciplinary universities and colleges by 2030 to 2040. The policy aims to consolidate single-stream institutions into multidisciplinary clusters, not shut multidisciplinary institutions down.

A. Both Statement I and Statement II are true — incorrect. Statement II contradicts national education policy.

B. Both Statement I and Statement II are false — incorrect. Statement I is a well-documented educational reality.

C. Statement I is true but Statement II is false — correct. Access is constrained by secondary school completion rates, and policy actively expands multidisciplinary institutions.

D. Statement I is false but Statement II is true — incorrect. Statement I is true and Statement II is false.
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Question 44
Broad parameters adopted by National Institutional Ranking Framework (NIRF) are

A. Teaching. learning and Resources
B. Graduation outcomes
C. Outreach and Inclusivity
D. Peer perception
E. Low Carbon footprint

Choose the most appropriate answer from the options given below:
1. AA, B, C, D Only
2. BA, B, D, E Only
3. CB, C, D, E Only
4. DA, C, D, E Only
Answer: (A) A, B, C, D Only
Explanation
The five core parameters of the NIRF framework are Teaching Learning and Resources, Research and Professional Practice, Graduation Outcomes, Outreach and Inclusivity, and Perception.

Evaluation of the parameters:

A. Teaching. learning and Resources (TLR) — core parameter covering student strength, faculty-student ratio, and library/laboratory resources.

B. Graduation outcomes (GO) — core parameter measuring university examinations pass rate and placements.

C. Outreach and Inclusivity (OI) — core parameter assessing representation of women, economically/socially disadvantaged students, and regional diversity.

D. Peer perception (PR) — core parameter gauging perception among academic peers and employers.

E. Low Carbon footprint — not one of the five NIRF ranking parameters.

A. A, B, C, D Only — correct. Statements A, B, C, and D are official NIRF ranking parameters.

B. A, B, D, E Only — incorrect. Carbon footprint is not a ranking parameter.

C. B, C, D, E Only — incorrect. It includes E and omits A.

D. A, C, D, E Only — incorrect. It includes E and omits B.
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Question 45
Which University in India was first to throw all University examinations open to girls?
1. APunjab University
2. BCalcutta University
3. CSavitribai Phule University
4. DBombay University
Answer: (B) Calcutta University
Explanation
The University of Calcutta was the first Indian university to admit female students and permit them to sit for all university degree examinations.

Historical context:

In 1877 to 1878, the Senate of the University of Calcutta resolved to open all university examinations to women on equal terms with men

Kadambini Ganguly and Chandramukhi Basu passed their degree examinations through Calcutta University (Bethune College) in 1883, becoming the first female university graduates in India and the British Empire

A. Punjab University — incorrect. Established in 1882 in Lahore, after Calcutta had already opened its examinations to women.

B. Calcutta University — correct. It led the reform in colonial India by opening university examinations to women in the late 1870s.

C. Savitribai Phule University — incorrect. Originally established as the University of Poona in 1949.

D. Bombay University — incorrect. Bombay University followed Calcutta in permitting women to sit for matriculation and degree exams.
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Question 46
Before 1940, colonisers believed that poor countries
The conceptions and treatment of poverty were quite different before 1940. In colonial times the concern with poverty was conditioned by the belief that even if the natives could be somewhat enlightened by the presence of the coloniser, not much could be done about their poverty. It was because their economic development was pointless. The natives' capacity for science and technology, the basis for economic progress was seen as nil. However, within Asian, African and Latin or Native American societies, vernacular societies had developed ways of defining and treating poverty that accommodated visions of community, frugality, and sufficiency. It is true that massive poverty in the modern sense appeared only when the spread of market economy broke down the communities. As a result, it deprived millions of people from access to land. water and other resources. With the consolidation of market economy, systemic issues became inevitable.

It is important to know the break that occurred in the conceptions and management of poverty first with the emergence of capitalism in Europe, and later with the advent of development in the Third world. The first break is described in terms of the advent in the nineteenth century of systems for dealing with the poor, based on assistance provided by impersonal institutions. Philanthropy occupied an important place in this transtion. The transformation of the poor into the assisted had a profound consequence. The modernisation of poverty invariably affected vernacular relations.
1. ACan be changed
2. BCan be totally enlightened
3. CCannot be changed
4. DDo not need their presence
Answer: (C) Cannot be changed
Explanation
In colonial times before 1940, colonizers believed that not much could be done about poverty because native economic development was viewed as pointless.

Evidence from the text:

The opening paragraph states: 'In colonial times the concern with poverty was conditioned by the belief that even if the natives could be somewhat enlightened by the presence of the coloniser, not much could be done about their poverty. It was because their economic development was pointless.'

Believing that nothing could be done about poverty equates to the view that poor countries could not be fundamentally changed.

A. Can be changed — incorrect. The colonizers believed that economic development was pointless.

B. Can be totally enlightened — incorrect. The text notes they could be only somewhat enlightened.

C. Cannot be changed — correct. Colonizers held that not much could be done about their poverty and viewed progress as pointless.

D. Do not need their presence — incorrect. Colonizers justified their presence by claiming to somewhat enlighten the natives.
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Question 47
The Vernacular societies encountered economic poverty with
The conceptions and treatment of poverty were quite different before 1940. In colonial times the concern with poverty was conditioned by the belief that even if the natives could be somewhat enlightened by the presence of the coloniser, not much could be done about their poverty. It was because their economic development was pointless. The natives' capacity for science and technology, the basis for economic progress was seen as nil. However, within Asian, African and Latin or Native American societies, vernacular societies had developed ways of defining and treating poverty that accommodated visions of community, frugality, and sufficiency. It is true that massive poverty in the modern sense appeared only when the spread of market economy broke down the communities. As a result, it deprived millions of people from access to land. water and other resources. With the consolidation of market economy, systemic issues became inevitable.

It is important to know the break that occurred in the conceptions and management of poverty first with the emergence of capitalism in Europe, and later with the advent of development in the Third world. The first break is described in terms of the advent in the nineteenth century of systems for dealing with the poor, based on assistance provided by impersonal institutions. Philanthropy occupied an important place in this transtion. The transformation of the poor into the assisted had a profound consequence. The modernisation of poverty invariably affected vernacular relations.
1. AScience and technology
2. BExternal aid
3. CModern ideas
4. DUse of resources sparingly
Answer: (D) Use of resources sparingly
Explanation
Vernacular societies met economic poverty through community arrangements emphasizing frugality, sufficiency, and the sparing use of resources.

Evidence from the text:

The passage states that 'vernacular societies had developed ways of defining and treating poverty that accommodated visions of community, frugality, and sufficiency.'

Frugality and sufficiency directly denote using available resources carefully and sparingly.

A. Science and technology — incorrect. The passage notes that colonisers viewed the natives capacity for science and technology as nil.

B. External aid — incorrect. Assistance from external impersonal institutions arose later with nineteenth-century capitalism.

C. Modern ideas — incorrect. Vernacular societies relied on traditional social relations rather than modern frameworks.

D. Use of resources sparingly — correct. This paraphrases the passage mention of frugality and sufficiency.
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Question 48
The market economy was responsible for
The conceptions and treatment of poverty were quite different before 1940. In colonial times the concern with poverty was conditioned by the belief that even if the natives could be somewhat enlightened by the presence of the coloniser, not much could be done about their poverty. It was because their economic development was pointless. The natives' capacity for science and technology, the basis for economic progress was seen as nil. However, within Asian, African and Latin or Native American societies, vernacular societies had developed ways of defining and treating poverty that accommodated visions of community, frugality, and sufficiency. It is true that massive poverty in the modern sense appeared only when the spread of market economy broke down the communities. As a result, it deprived millions of people from access to land. water and other resources. With the consolidation of market economy, systemic issues became inevitable.

It is important to know the break that occurred in the conceptions and management of poverty first with the emergence of capitalism in Europe, and later with the advent of development in the Third world. The first break is described in terms of the advent in the nineteenth century of systems for dealing with the poor, based on assistance provided by impersonal institutions. Philanthropy occupied an important place in this transtion. The transformation of the poor into the assisted had a profound consequence. The modernisation of poverty invariably affected vernacular relations.
1. AIncreased access to resources
2. BMassive poverty
3. CEnlightened development
4. DIdealisation of tradition
Answer: (B) Massive poverty
Explanation
The passage states that massive poverty in the modern sense appeared when the spread of the market economy broke down traditional communities.

Evidence from the text:

The passage explicitly notes: 'It is true that massive poverty in the modern sense appeared only when the spread of market economy broke down the communities.'

It further explains that this breakdown deprived millions of people from access to land, water, and resources.

A. Increased access to resources — incorrect. The passage explicitly states that people were deprived of access to resources.

B. Massive poverty — correct. The text directly attributes the emergence of massive poverty in the modern sense to the spread of the market economy.

C. Enlightened development — incorrect. The passage refers to the colonisers view that economic development was pointless.

D. Idealisation of tradition — incorrect. The market economy disrupted traditional vernacular arrangements rather than idealizing them.
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Question 49
Capitalistic development introduced the idea of
The conceptions and treatment of poverty were quite different before 1940. In colonial times the concern with poverty was conditioned by the belief that even if the natives could be somewhat enlightened by the presence of the coloniser, not much could be done about their poverty. It was because their economic development was pointless. The natives' capacity for science and technology, the basis for economic progress was seen as nil. However, within Asian, African and Latin or Native American societies, vernacular societies had developed ways of defining and treating poverty that accommodated visions of community, frugality, and sufficiency. It is true that massive poverty in the modern sense appeared only when the spread of market economy broke down the communities. As a result, it deprived millions of people from access to land. water and other resources. With the consolidation of market economy, systemic issues became inevitable.

It is important to know the break that occurred in the conceptions and management of poverty first with the emergence of capitalism in Europe, and later with the advent of development in the Third world. The first break is described in terms of the advent in the nineteenth century of systems for dealing with the poor, based on assistance provided by impersonal institutions. Philanthropy occupied an important place in this transtion. The transformation of the poor into the assisted had a profound consequence. The modernisation of poverty invariably affected vernacular relations.
1. AModernised poverty
2. BImpersonal institutions
3. CThird world
4. DVernacular relations
Answer: (A) Modernised poverty
Explanation
Capitalism transformed the poor into the assisted through impersonal institutional systems, introducing the modernisation of poverty.

Evidence from the text:

The second paragraph explains that with the emergence of capitalism in Europe, systems for dealing with the poor developed based on impersonal assistance and philanthropy.

The author concludes: 'The transformation of the poor into the assisted had a profound consequence. The modernisation of poverty invariably affected vernacular relations.'

A. Modernised poverty — correct. The passage identifies the conceptual break brought by capitalistic systems as the modernisation of poverty.

B. Impersonal institutions — incorrect. Impersonal institutions were the mechanism of assistance, whereas modernised poverty was the overarching concept introduced.

C. Third world — incorrect. The Third world is mentioned in connection with the later advent of development.

D. Vernacular relations — incorrect. Vernacular relations predated capitalism and were disrupted by it.
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Question 50
The passage focuses on
The conceptions and treatment of poverty were quite different before 1940. In colonial times the concern with poverty was conditioned by the belief that even if the natives could be somewhat enlightened by the presence of the coloniser, not much could be done about their poverty. It was because their economic development was pointless. The natives' capacity for science and technology, the basis for economic progress was seen as nil. However, within Asian, African and Latin or Native American societies, vernacular societies had developed ways of defining and treating poverty that accommodated visions of community, frugality, and sufficiency. It is true that massive poverty in the modern sense appeared only when the spread of market economy broke down the communities. As a result, it deprived millions of people from access to land. water and other resources. With the consolidation of market economy, systemic issues became inevitable.

It is important to know the break that occurred in the conceptions and management of poverty first with the emergence of capitalism in Europe, and later with the advent of development in the Third world. The first break is described in terms of the advent in the nineteenth century of systems for dealing with the poor, based on assistance provided by impersonal institutions. Philanthropy occupied an important place in this transtion. The transformation of the poor into the assisted had a profound consequence. The modernisation of poverty invariably affected vernacular relations.
1. AThe merits of market economy
2. BThe need for philanthropy to reduce poverty
3. CThe ill-effects of capitalism
4. DThe issue of redefining poverty in the Third World.
Answer: (C) The ill-effects of capitalism
Explanation
The passage critically analyzes the negative consequences of capitalism and the market economy on traditional social structures and poverty.

Textual analysis:

The author details how the expansion of the market economy dismantled vernacular communities and denied millions access to land and water.

It highlights the systemic problems and alienation resulting from transforming community sufficiency into institutionalized, modernized poverty.

The central theme is the disruptive impact and negative social consequences of capitalist development.

A. The merits of market economy — incorrect. The passage highlights systemic destruction rather than merits.

B. The need for philanthropy to reduce poverty — incorrect. Philanthropy is critiqued as an impersonal mechanism that modernized poverty.

C. The ill-effects of capitalism — correct. The narrative focuses on how capitalism broke down community autonomy and produced modern mass poverty.

D. The issue of redefining poverty in the Third World. — incorrect. Third World development is only mentioned in passing in the second paragraph.
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Attempt Paper 1 — General Aptitude · Shift 2 as a timed test

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Paper 2 — Commerce · Shift 2

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100 questions with the answer key and explanations.

Question 1
Pricing of housing loan by a commercial bank may follow the following steps in a logical sequence:

A. Competitive price determination
B. Specification of spread
C. Application of MCLR
D. Conduct of Credit Assessment
E. Quoting to prospective borrower

Choose the correct answer from the options given below:
1. A(C), (B), (A), (D), (E)
2. B(A), (B), (D), (C), (E)
3. C(B), (A), (D), (E), (C)
4. D(D), (C), (B), (A), (E)
Answer: (D) (D), (C), (B), (A), (E)
Explanation
Commercial banks price retail housing loans by progressing from borrower evaluation to benchmark pricing, risk-spread addition, competitive alignment, and formal quotation.

(D) -> (C) -> (B) -> (A) -> (E)

Conduct of Credit Assessment (D) — The bank first evaluates the applicant's credit score, income stability, and debt service capacity.

Application of MCLR (C) — The applicable Marginal Cost of Funds Based Lending Rate benchmark is selected as the baseline cost of funds.

Specification of spread (B) — A credit risk spread is added above the benchmark based on borrower profile and collateral quality.

Competitive price determination (A) — The calculated rate is calibrated against peer market rates for identical loan products.

Quoting to prospective borrower (E) — The final effective interest rate is formally communicated to the borrower.
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Question 2
Presumptive taxation involves which one of the following?
1. AThe use of indirect methods to calculate tax liability, which differ from the usual sales based on the tax payers accounts.
2. BTransfer of tax liability from State to the Centre.
3. CCalculation of short term capital gain.
4. DCalculation of rebate U/S 89.
Answer: (A) The use of indirect methods to calculate tax liability, which differ from the usual sales based on the tax payers accounts.
Explanation
Presumptive taxation under the Income Tax Act allows eligible small businesses and professionals to compute income using prescribed statutory estimation rates rather than maintaining comprehensive accounting records.

A. Indirect calculation methods — correct. Sections 44AD, 44ADA, and 44AE presume profit at statutory percentages of gross turnover or receipts, bypassing complex bookkeeping.

B. Transfer of liability from State to Centre — wrong. Presumptive taxation does not reallocate taxing jurisdictions between tiers of government.

C. Calculation of short term capital gain — wrong. The presumptive tax framework applies exclusively to business or professional profits.

D. Calculation of rebate U/S 89 — wrong. Section 89 offers tax relief for arrears or advance salary receipts.
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Question 3
Sequentially arrange the following themes related to globalization of Indian businesses since independence:

A. FDI in various sectors opened along with slashing of custom duties
B. Partial opening of economy to external trade and de-licensing of some key sectors
C. Govt.-led investments in large public sector units in steel, chemicals and power
D. Indian businesses became competitive and started to reap rewards of various phases of development learning
E. Increased government involvement in industry with sustained focus on import substitution

Choose the correct answer from the options given below:
1. A(C), (E), (B), (D), (A)
2. B(E), (C), (B), (A), (D)
3. C(C), (E), (B), (A), (D)
4. D(A), (C), (E), (B), (D)
Answer: (C) (C), (E), (B), (A), (D)
Explanation
India's industrial and global integration evolved chronologically from post-independence public sector capital expenditure through import substitution, piecemeal deregulation, comprehensive structural reforms, and global competitive maturity.

(C) -> (E) -> (B) -> (A) -> (D)

Govt.-led investments in public sector units (C) — The 1950s Second Five-Year Plan prioritized state-driven capital goods such as steel and power.

Increased government involvement and import substitution (E) — The 1960s and 1970s enforced inward-looking trade regimes and industrial licensing.

Partial opening and de-licensing (B) — The mid-1980s introduced selective economic deregulation and import liberalization under early industrial reforms.

FDI opening and tariff reduction (A) — The historic 1991 New Economic Policy dismantled industrial licensing and slashed customs tariffs.

Competitive Indian businesses (D) — From the late 1990s onward, Indian corporations leveraged their accumulated capabilities to compete globally.
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Question 4
Which one of the following is a myth about rural markets?
1. AAll villages are not equally populated.
2. BRural buyers are a heterogenous lot.
3. CRural buyers are able to discriminate between products and brands.
4. DOnly low priced products sell in rural markets.
Answer: (D) Only low priced products sell in rural markets.
Explanation
Assuming that rural consumers only purchase low-priced goods is a widely debunked marketing myth, as rural buyers actively evaluate value proposition, utility, and brand reputation across premium categories.

A. All villages are not equally populated — fact. Village population sizes exhibit enormous demographic dispersion.

B. Rural buyers are a heterogenous lot — fact. Rural consumers differ significantly across income levels, education, geography, and lifestyle.

C. Rural buyers discriminate between products and brands — fact. Rural consumers are brand-conscious and recognize subtle quality differences.

D. Only low priced products sell in rural markets — myth. Rural consumers readily invest in durable, high-utility, premium products that demonstrate clear value.
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Question 5
The pricing practice to extract all of the consumer surplus from consumers to maximize the total revenue and profits from the sale of a particular quantity of product is called:
1. AFirst-degree price discrimination
2. BSecond-degree price discrimination
3. CThird-degree price discrimination
4. DPenetration pricing
Answer: (A) First-degree price discrimination
Explanation
First-degree price discrimination, also termed perfect price discrimination or personalized pricing, charges each buyer the maximum price they are willing to pay, appropriating the entirety of consumer surplus.

A. First-degree price discrimination — correct. Each individual buyer is charged their reservation price, converting all consumer surplus into monopoly profit.

B. Second-degree price discrimination — wrong. Prices vary based on quantity purchased or block usage rather than individual buyer identity.

C. Third-degree price discrimination — wrong. Consumers are segmented into distinct demographic or geographic groups with separate uniform prices.

D. Penetration pricing — wrong. This strategy sets an initial low price to rapidly secure market share in a competitive market.
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Question 6
As per the Agency Theory of Corporate Governance, which of the following statements are relevant?

A. Governance approach is materialistic
B. Managers are motivated by the principal's objectives
C. Interests of the managers and principals converge
D. Behaviour pattern is opportunistic
E. Owner's attitude is to avoid risks

Choose the most appropriate answer from the options given below:
1. A(A), (C), (E) only
2. B(B), (C), (D) only
3. C(B), (D), (E) only
4. D(A), (D), (E) only
Answer: (D) (A), (D), (E) only
Explanation
Agency Theory posits that managers act as self-interested agents whose individual utility functions diverge from owners, characterized by materialistic orientation, opportunistic behavior, and divergent risk preferences.

Governance approach is materialistic (A) — relevant. Agents are motivated by extrinsic financial incentives and personal gain.

Managers motivated by principal objectives (B) — false for Agency Theory. This assumption belongs to Stewardship Theory.

Convergence of interests (C) — false for Agency Theory. Agency theory assumes fundamental conflict and divergence of interest between principal and agent.

Opportunistic behaviour pattern (D) — relevant. Agents exploit information asymmetry to pursue their own interests.

Owner's attitude to avoid risks (E) — relevant. Principals implement governance safeguards and risk-control mechanisms to curb agent moral hazard.
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Question 7
A company should undergo a step-wise process before selecting a final price. Accordingly, arrange the following steps of pricing-policy process to help 'XYZ' company to decide the final price of its product.

A. Selecting the pricing method
B. Examining competitor's costs, prices and offers
C. Estimating the demand curve and the probable quantities company will sell at each possible price
D. Selecting the pricing objective of the company
E. Estimating costs for different levels of output, for different levels of accumulated production experience, and for differentiated marketing offers

Choose the correct answer from the options given below:
1. A(D), (B), (E), (C), (A)
2. B(D), (C), (E), (B), (A)
3. C(A), (B), (C), (E), (D)
4. D(A), (D), (E), (C), (B)
Answer: (B) (D), (C), (E), (B), (A)
Explanation
Establishing a corporate pricing policy systematically follows Kotler's six-step framework: defining objectives, determining demand, estimating costs, analyzing competitors, selecting a pricing method, and choosing the final price.

(D) -> (C) -> (E) -> (B) -> (A)

Selecting the pricing objective (D) — The firm first defines its strategic goal, such as survival, maximum current profit, or market share.

Estimating the demand curve (C) — The firm estimates price sensitivity and the expected volume demanded at various price points.

Estimating costs (E) — Cost structures are calculated across production levels, experience curves, and offer variations to determine the price floor.

Examining competitors' costs, prices, and offers (B) — Competitor benchmarks are analyzed to position the offer between floor and ceiling.

Selecting the pricing method (A) — A formal pricing method, such as markup pricing or target-return pricing, is chosen before setting the final price.
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Question 8

Match List I with List II:

List I - Legal Latin Phrase	List II - Description
(A) Consensus ad idem	(I) Something in return
(B) Quid pro quo	(II) As much as earned
(C) Quantum meruit	(III) Buyer beware
(D) Caveate emptor	(IV) Meeting of minds

A(A) - (I), (B) - (III), (C) - (IV), (D) - (II)
B(A) - (IV), (B) - (I), (C) - (II), (D) - (III)
C(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
D(A) - (I), (B) - (IV), (C) - (II), (D) - (III)

Answer: (B) (A) - (IV), (B) - (I), (C) - (II), (D) - (III)

Explanation

Standard Latin legal maxims in commercial contract law govern mutual consent, consideration, fair remuneration, and buyer diligence.

A-IV, B-I, C-II, D-III

Consensus ad idem (A) — Maps to meeting of minds (IV), signifying that contracting parties agree upon the same thing in the same sense.
Quid pro quo (B) — Maps to something in return (I), representing the foundation of legal consideration in contract formation.
Quantum meruit (C) — Maps to as much as earned (II), providing reasonable compensation for goods or services delivered when a contract is discharged.
Caveat emptor (D) — Maps to buyer beware (III), assigning the purchaser the responsibility to inspect goods before concluding a sale.

Question 9
Arrange the following stages of delegation in correct sequence:

A. Establish proper controls
B. Select the person in light of the job to be done
C. Reward effective delegation and successful assumption of authority
D. Define assignments and delegate authority in light of results expected
E. Maintain open lines of communication

Choose the correct answer from the options given below:
1. A(A), (B), (C), (E), (D)
2. B(B), (D), (E), (A), (C)
3. C(D), (B), (E), (A), (C)
4. D(C), (D), (B), (E), (A)
Answer: (B) (B), (D), (E), (A), (C)
Explanation
Effective delegation follows an orderly managerial sequence from subordinate selection to authority assignment, continuous communication, control establishment, and performance reinforcement.

(B) -> (D) -> (E) -> (A) -> (C)

Select the person (B) — The manager first identifies the subordinate with appropriate competence matching the operational task.

Define assignments and delegate authority (D) — Specific duties are assigned and commensurate formal authority is granted based on target results.

Maintain open lines of communication (E) — Unrestricted communication channels provide guidance and support during execution.

Establish proper controls (A) — Feedback mechanisms and performance standards ensure accountability for results.

Reward effective delegation (C) — Recognition and tangible rewards reinforce successful completion and willingness to assume future responsibility.
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Question 10
Rates of Income Tax under new regime applicable for financial year 2021-22 in India are:

A. 5%
B. 10%
C. 12%
D. 15%
E. 20%

Choose the correct answer from the options given below:
1. A(A), (B), (C) only
2. B(A), (B), (D) only
3. C(A), (B), (D), (E) only
4. D(B), (C), (D), (E) only
Answer: (C) (A), (B), (D), (E) only
Explanation
Section 115BAC of the Income Tax Act defined the optional concessional tax regime for individual assessees for FY 2021-22 across standard 5 percentage point step slabs.

Income slabs and tax rates under Section 115BAC for FY 2021-22:

Up to Rs 2,50,000 — Nil

Rs 2,50,001 to Rs 5,00,000 — 5% (A)

Rs 5,00,001 to Rs 7,50,000 — 10% (B)

Rs 7,50,001 to Rs 10,00,000 — 15% (D)

Rs 10,00,001 to Rs 12,50,000 — 20% (E)

Rs 12,50,001 to Rs 15,00,000 — 25%

Above Rs 15,00,000 — 30%

A rate of 12% does not exist in the new tax regime, making (A), (B), (D), and (E) the valid rates.
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Question 11
If the subject matter of insurance is the ship, the marine insurance is called:
1. ACargo insurance
2. BHull insurance
3. CFreight insurance
4. DVoyage insurance
Answer: (B) Hull insurance
Explanation
In marine insurance, coverage classification depends directly on the insured subject matter.

A. Cargo insurance — wrong. Protects goods, merchandise, and cargo carried on the vessel against maritime transit risks.

B. Hull insurance — correct. Specifically insures the ship's hull, machinery, fixtures, and navigational equipment against maritime perils.

C. Freight insurance — wrong. Insures the shipping company against loss of transportation freight charges if goods are destroyed.

D. Voyage insurance — wrong. Classifies a policy by duration covering a specific journey rather than defining the insured subject matter.
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Question 12
As per Section 68 of the Indian Companies Act, a company may purchase its own shares out of which of the following?

A. Free reserves
B. Securities premium account
C. General reserve
D. Proceeds of any other shares
E. Proceeds of same kind of shares

Choose the correct answer from the options given below:
1. A(A), (B), (C) and (E) only
2. B(A), (B), and (D) only
3. C(B), (C), (D) and (E) only
4. D(A), (C), (D) and (E) only
Answer: (B) (A), (B), and (D) only
Explanation
Section 68(1) of the Companies Act 2013 explicitly enumerates the statutory sources a company can utilize to fund the buy-back of its own shares.

Statutory sources under Section 68(1):

Free reserves (A)

Securities premium account (B)

Proceeds of the issue of any shares or other specified securities (D)

The proviso to Section 68(1) expressly prohibits any buy-back out of the proceeds of an earlier issue of the same kind of shares (E), confirming (A), (B), and (D) as the sole permissible combination.
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Question 13

Match List I with List II:

List I - Type of Exposure	List II - Description
(A) Economic Exposure	(I) Potential changes in all future cash flows of a firm that result from unanticipated changes in exchange rates.
(B) Translation Exposure	(II) It arises when items of financial statements that are stated in foreign currencies are restated in the home currency of an MNC.
(C) Transaction Exposure	(III) It arises when a firm's contract obligations are exposed to unanticipated changes in exchange rate.
(D) Operating Exposure	(IV) When a firm's real assets are exposed to unanticipated changes in exchange rates.

A(A) - (III), (B) - (IV), (C) - (II), (D) - (I)
B(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
C(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
D(A) - (I), (B) - (IV), (C) - (III), (D) - (II)

Answer: (B) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)

Explanation

Corporate foreign exchange risks are partitioned into economic, translation, transaction, and operating exposures based on how exchange rate shifts impact financial statements and cash flows.

A-I, B-II, C-III, D-IV

Economic Exposure (A) — Potential changes in all future cash flows of a firm that result from unanticipated changes in exchange rates (I).
Translation Exposure (B) — Arises when items of financial statements stated in foreign currencies are restated in the home currency of an MNC (II).
Transaction Exposure (C) — Arises when a firm's contractual obligations are exposed to unanticipated changes in exchange rates prior to settlement (III).
Operating Exposure (D) — When a firm's real assets and ongoing competitive position are exposed to unanticipated changes in exchange rates (IV).

Question 14

Match List I with List II:

List I - Statistical Distribution	List II - Characteristical Expression
(A) Negatively Skewed Distribution	(I) Mean = Mode, P(x ≤ μ) = 0.50
(B) Positively Skewed Distribution	(II) x̄ > Median > Mode: P > 0.5
(C) Binomial Distribution	(III) x̄ < Median < Mode
(D) Normal Distribution	(IV) x̄ > Median > Mode

A(A) - (III), (B) - (I), (C) - (II), (D) - (IV)
B(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
C(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
D(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Answer: (D) (A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Explanation

Statistical distributions are characterized by their symmetry, skewness inequalities, and probability density properties around central tendency parameters.

A-III, B-IV, C-II, D-I

Negatively Skewed Distribution (A) — The long tail extends to the left, yielding Mean < Median < Mode (III).
Positively Skewed Distribution (B) — The long tail extends to the right, yielding Mean > Median > Mode (IV).
Binomial Distribution (C) — Characterized by asymmetric discrete parameters when success probability P deviates from 0.5 (II).
Normal Distribution (D) — Symmetrical bell-shaped curve where Mean = Mode = Median, and cumulative probability P(X <= mu) = 0.50 (I).

Question 15
Which of the following are key assumptions of Gordon's Dividend Model?

A. Ke > br
B. r and Ke are changing
C. The firm is not all-equity firm
D. The firm has perpetual life
E. The retention ratio, once decided, is constant

Choose the correct answer from the options given below:
1. A(A), (D), (E) only
2. B(B), (C), (E) only
3. C(A), (B), (D) only
4. D(C), (D), (E) only
Answer: (A) (A), (D), (E) only
Explanation
Myron Gordon's dividend capitalization model formulates equity share valuation based on constant growth assumptions.

Ke > br (A) — valid assumption. The cost of capital Ke must exceed the growth rate g = br to ensure a meaningful, non-negative share valuation.

r and Ke are changing (B) — invalid. Gordon assumes that the rate of return r and the cost of capital Ke remain permanently constant.

The firm is not all-equity firm (C) — invalid. Gordon explicitly assumes an all-equity firm with zero debt financing.

The firm has perpetual life (D) — valid assumption. The business enterprise and its dividend streams are assumed to continue perpetually.

Constant retention ratio (E) — valid assumption. The retention ratio b, once determined, remains unchanged over time.
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Question 16
Given below are two statements:

Statement I: Display of goods by a shopkeeper with prices marked on them, is not an offer but an invitation to the public to make an offer to buy the goods.
Statement II: Price quotations, catalogues and advertisements in newspaper for sale of an article do constitute a valid offer.

In the light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (C) Statement I is correct but Statement II is incorrect
Explanation
Under the Indian Contract Act 1872, an offer invites binding acceptance, whereas an invitation to offer merely invites negotiations or offers from the public.

Statement I is correct — Displaying goods on retail shelves with marked price tags constitutes an invitation to offer. The prospective customer makes the offer at the checkout counter.

Statement II is incorrect — Price quotations, catalogues, and general newspaper advertisements are invitations to offer rather than legally binding offers.
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Question 17
Which of the following are key features of prudent accounting concepts and conventions?

A. It includes revenues and profits in the accounts when they are realised
B. It prevents profits from being overstated
C. It prevents a trader from more withdrawing from the business than is wise
D. Managerial efficiency and expertise
E. Good customer relations

Choose the correct answer from the options given below:
1. A(C), (D) and (E) only
2. B(A), (D) and (E) only
3. C(B), (C), and (D) only
4. D(A), (B) and (C) only
Answer: (D) (A), (B) and (C) only
Explanation
The prudence or conservatism convention dictates that all prospective losses must be recognized immediately, while profits are recorded only when realized with reasonable certainty.

Includes revenues when realised (A) — core feature. Unrealized prospective gains are excluded from the books of account.

Prevents profits from being overstated (B) — core feature. Prudence curbs asset overvaluation and artificial profit inflation.

Prevents excessive capital withdrawal (C) — core feature. By barring fictitious profits, it prevents partners or owners from drawing excess funds.

Managerial efficiency (D) and customer relations (E) — irrelevant. Non-monetary qualitative factors are excluded under the money measurement concept.
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Question 18

Match List I with List II:

List I - Description	List II - Conceptualisation
(A) Net Stable Funding Ratio	(I) Asset Liability Management
(B) Innovative Perpetual Debt Instrument	(II) Tier-I capital
(C) Time Maturity Gap	(III) Tier - II capital
(D) Risk Weighted Assets	(IV) Basel - III norms

A(A) - (IV), (B) - (II), (C) - (I), (D) - (III)
B(A) - (I), (B) - (IV), (C) - (III), (D) - (II)
C(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
D(A) - (IV), (B) - (III), (C) - (II), (D) - (I)

Answer: (A) (A) - (IV), (B) - (II), (C) - (I), (D) - (III)

Explanation

Banking regulatory norms under Basel guidelines and Reserve Bank ALM frameworks classify balance sheet exposures and capital tiers by specific risk parameters.

A-IV, B-II, C-I, D-III

Net Stable Funding Ratio (A) — Introduced under Basel III norms (IV) to ensure banks maintain a stable funding profile relative to the composition of their assets.
Innovative Perpetual Debt Instrument (B) — Classified as eligible Additional Tier-I capital (II) under RBI capital adequacy regulations.
Time Maturity Gap (C) — A fundamental analytical metric used in Asset Liability Management (I) to assess liquidity and interest rate sensitivity across maturity buckets.
Risk Weighted Assets (D) — Denominator in capital adequacy ratios, establishing required Tier-II and Tier-I regulatory capital reserves (III).

Question 19
Economists' adjustment to reality limited by individual consumers' preferences, intelligence and environmental factors is called:
1. ARationality
2. BHomo economicus
3. CBounded rationality
4. DConsumer sovereignty
Answer: (C) Bounded rationality
Explanation
Herbert Simon formulated bounded rationality to describe human decision-making where cognitive limitations, imperfect information, and finite time force individuals to satisfice rather than optimize.

A. Rationality — wrong. Classical rationality assumes unbounded cognitive capacity and flawless cost-benefit calculations.

B. Homo economicus — wrong. The hypothetical perfectly rational economic agent possessing complete information and consistent utility ranking.

C. Bounded rationality — correct. Captures realistic human decision-making constrained by mental capacity, information access, and environmental limits.

D. Consumer sovereignty — wrong. Describes market systems where consumer preferences dictate the pattern of goods and services produced.
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Question 20
A contract is discharged by supervening impossibility under which of the following situations?

A. Destruction of subject matter
B. Death or disablement of parties
C. Rescission
D. Remission
E. Accord and satisfaction

Choose the correct answer from the options given below:
1. A(A), (C) and (D) only
2. B(A) and (B) only
3. C(A), (B) and (E) only
4. D(C) and (D) only
Answer: (B) (A) and (B) only
Explanation
Section 56 of the Indian Contract Act 1872 stipulates that a contract becomes void through supervening impossibility when unforeseen external events render performance physically or legally impossible without fault of either party.

Destruction of subject matter (A) — discharges contract by frustration when the specific good or venue essential to performance ceases to exist.

Death or disablement of parties (B) — discharges personal contracts dependent on individual skill, artistry, or capacity.

Rescission (C), Remission (D), and Accord and satisfaction (E) — discharge contracts by mutual agreement under Sections 62 and 63, not by supervening impossibility.
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Question 21
Which of the following statements are correct?

A. Internal reliability is described as the consistency of a measure taken at two different points of time
B. A distribution is random walk if it has a mean of 0 and variance of 1
C. Increase and decrease in scores measured overtime that produce a variance of less than 50% is reliable
D. Normal distribution cannot be applied to real life situations
E. Factor Analysis supersedes multiple discriminant analysis

Choose the most appropriate answer from the options given below:
1. A(A), (B), (E) only
2. B(C), (D), (E) only
3. C(B), (C), (D) only
4. D(B), (D), (E) only
Answer: (A) (A), (B), (E) only
Explanation
The official examination key for this item designates option combination (A), (B), and (E) as the accepted answer.

A. Internal reliability — The item loosely phrases temporal stability (typically test-retest reliability) under general measurement consistency.

B. Random walk distribution — A standard Gaussian random walk step increment exhibits zero mean and unit variance.

E. Factor Analysis supersedes multiple discriminant analysis — In dimension reduction workflows, factor analysis condenses latent predictors prior to classification.

Statements C and D — Statement D is clearly false because normal distributions are routinely applied to empirical phenomena, ruling out options containing D.
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Question 22
Total revenue of a business firm increases as long as:
1. A|Ep| > 1
2. B|Ep| = 1
3. C|Ep| < 1
4. D|Ep| < 0
Answer: (A) |Ep| > 1
Explanation
The mathematical relationship connecting Marginal Revenue (MR), Price (P), and Price Elasticity of Demand (|Ep|) demonstrates when Total Revenue (TR) expands.

MR = P * (1 - 1 / |Ep|)

When demand is price elastic (|Ep| > 1), the term (1 - 1 / |Ep|) is positive, making MR > 0. Consequently, selling additional output increases TR.

When |Ep| = 1, MR equals zero and Total Revenue reaches its absolute maximum.

When demand is inelastic (|Ep| < 1), MR is negative and expanding output reduces Total Revenue.
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Question 23
Which of the following are thinly veiled disguises that essentially restrict imports?

A. Voluntary import restrictions
B. Labeling requirements showing origin and contents
C. Import tariffs and quotas
D. Safety regulations for automobile and electrical equipments
E. Health regulations for hygiene production and packaging of imported food production

Choose the correct answer from the options given below:
1. A(A), (B) and (C) only
2. B(B), (C) and (D) only
3. C(C), (D) and (E) only
4. D(B), (D) and (E) only
Answer: (D) (B), (D) and (E) only
Explanation
Non-tariff trade barriers often adopt the disguised form of domestic regulatory standards that ostensibly protect public welfare while imposing disproportionate compliance burdens on foreign imports.

Labeling requirements (B) — Complex packaging and origin declarations act as covert administrative impediments.

Safety regulations for automobiles and electrical equipment (D) — Technical regulations and certification barriers restrict foreign entry.

Health and sanitary regulations (E) — Strict sanitary standards on food products are frequently deployed as protectionist non-tariff measures.

Import tariffs and quotas (C) — These are explicit, overt fiscal and volume restrictions rather than disguised barriers.
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Question 24
According to Herzberg's Two Factor Theory, which one of the following is not a maintenance factor?
1. AAffiliation or Acceptance
2. BEsteem or Status
3. CSecurity or Safety
4. DPhysiological Needs
Answer: (B) Esteem or Status
Explanation
Frederick Herzberg bifurcated workplace factors into hygiene (maintenance) factors that prevent dissatisfaction and motivators that generate genuine satisfaction and high performance.

A. Affiliation or Acceptance — maintenance factor. Corresponds to interpersonal relations and working conditions.

B. Esteem or Status — motivator. Relates to intrinsic recognition, advancement, and achievement needs.

C. Security or Safety — maintenance factor. Encompasses job security and safe working conditions.

D. Physiological Needs — maintenance factor. Encompasses baseline monetary salary and basic physical requirements.
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Question 25
Steps involved in computation of Book Profit under MAT regime are as follows:

A. Arrive NP as per statement of P/L A/C of the company
B. Specific adjustments in case of merger
C. Make adjustments pertaining to OCI items
D. Adjust the book profit with stipulated exclusion and inclusion
E. Net amount of Book Profit for application of MAT rate

Choose the correct sequence from the options given below:
1. A(A), (D), (B), (C), (E)
2. B(A), (B), (D), (C), (E)
3. C(A), (C), (B), (D), (E)
4. D(A), (B), (C), (D), (E)
Answer: (A) (A), (D), (B), (C), (E)
Explanation
Under Section 115JB of the Income Tax Act, computing book profit for Minimum Alternate Tax (MAT) follows a prescribed statutory sequence.

(A) -> (D) -> (B) -> (C) -> (E)

Arrive at Net Profit (A) — Start with the Net Profit shown in the company's Statement of Profit and Loss prepared under Schedule III of the Companies Act.

Stipulated exclusions and inclusions (D) — Make general statutory add-backs and deductions specified in Explanation 1 to Section 115JB(2).

Specific adjustments for merger (B) — Account for special adjustments arising in corporate restructuring and amalgamation cases.

Adjustments for OCI items (C) — Incorporate Ind AS transition adjustments and Other Comprehensive Income items under Section 115JB(2A).

Net amount of Book Profit (E) — Finalize the taxable book profit figure to which the 15% MAT rate applies.
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Question 26
Given below are two statements:

Statement I: Policies are guides to action, rather than to thinking.
Statement II: Policies define an area within which a decision is to be made.

In the light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (D) Statement I is incorrect but Statement II is correct
Explanation
In management planning, policies serve as general guidelines for managerial thinking during decision-making, while rules and procedures govern concrete actions.

Statement I is incorrect — Policies guide thinking rather than direct action. Procedures and operational rules are the administrative mechanisms designed to guide physical action.

Statement II is correct — Policies delineate the boundaries and operational latitude within which managers must exercise decision-making discretion.
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Question 27
Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R:

Assertion (A): Capital structure is determined within debt capacity of a company and it should not be exceeded.
Reason (R): Debt capacity of a company depends on its ability to generate cash flows. It should generate cash enough to pay lenders' fixed charges and principal sums.

In the light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
2. BBoth (A) and (R) are correct but (R) is NOT the correct explanation of (A)
3. C(A) is correct but (R) is not correct
4. D(A) is not correct but (R) is correct
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Explanation
A firm's debt capacity dictates the prudential ceiling for leverage in its capital structure to prevent financial distress and insolvency.

Assertion (A) is correct — Financial leverage must remain strictly within debt capacity to prevent excessive default risk and loss of control.

Reason (R) is correct and explains (A) — Debt capacity is determined by operational cash flow generation. Operating inflows must reliably cover mandatory debt service obligations, directly justifying why leverage cannot exceed cash-backed capacity.
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Question 28
Michael Porter has identified five forces that determine the intrinsic long-term attractiveness of a market. According to the model, which of the following are true?

A. A segment is unattractive if it already contains numerous aggressive competitors
B. A segment is unattractive if it is stable or declining
C. A segment is unattractive if it has high entry barriers and low exit barriers
D. A segment is unattractive if the company's suppliers are able to raise prices
E. A segment is unattractive when there are actual or potent substitutes for the product

Choose the correct answer from the options given below:
1. A(A) and (B) only
2. B(B) and (C) only
3. C(A), (C) and (D) only
4. D(A), (B), (D) and (E) only
Answer: (D) (A), (B), (D) and (E) only
Explanation
Michael Porter's Five Forces framework evaluates industry attractiveness based on competitive rivalry, barriers to entry and exit, supplier and buyer power, and threat of substitutes.

Aggressive competitors (A) — true. High existing rivalry drives price wars, depressing segment profitability.

Stable or declining market (B) — true. Stagnant demand intensifies zero-sum competition for market share.

High entry barriers and low exit barriers (C) — false. This combination represents the most attractive segment structure because entry is blocked while failing incumbents can easily leave.

Powerful suppliers (D) — true. Suppliers who can dictate price increases squeeze industry profit margins.

Actual or potential substitutes (E) — true. Available substitutes place a ceiling on prices and profitability.
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Question 29
Dimensions of VALS^{TM} framework to include which one of the following?
1. AConsumer motivation and consumer resources
2. BConsumer personality and consumer resources
3. CConsumer motivation and consumer preferences
4. DConsumer needs and consumer resources
Answer: (A) Consumer motivation and consumer resources
Explanation
The Values and Lifestyles (VALS) psychographic segmentation system maps adult consumer mindsets across two primary analytical dimensions.

A. Consumer motivation and consumer resources — correct. The vertical dimension measures consumer resources (income, education, self-confidence, energy), while the horizontal dimension captures primary motivation (ideals, achievement, self-expression).

B. Consumer personality and consumer resources — wrong. Personality traits are incorporated into resources rather than standing as an independent primary axis.

C. Consumer motivation and consumer preferences — wrong. Preferences represent downstream behavioral outcomes rather than structural framework axes.

D. Consumer needs and consumer resources — wrong. Primary psychological motivation, not general need classification, defines the second dimension.
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Question 30
Under Indian Income Tax Act, allowances which are non-taxable for the individual assessee are:

A. Sumptuary allowances
B. Compensatory allowance paid to judges
C. Overtime allowance
D. Allowances paid to Govt. employees posted abroad
E. Non-practicing allowance

Choose the correct answer from the options given below:
1. A(A), (B), (D), (E) only
2. B(A), (C), (D), (E) only
3. C(A), (B), (D) only
4. D(A), (B), (C), (D), (E)
Answer: (C) (A), (B), (D) only
Explanation
The Income Tax Act explicitly exempts select statutory allowances granted to judicial officers and public servants while treating occupational allowances as taxable income.

Sumptuary allowances (A) — exempt. Allowances received by High Court and Supreme Court judges are non-taxable under their respective conditions of service acts.

Compensatory allowance paid to judges (B) — exempt. Article 222(2) compensatory allowances paid to transferred judges are fully exempt from income tax.

Allowances paid to Government employees posted abroad (D) — exempt. Section 10(7) fully exempts allowances and perquisites paid by the Government to Indian citizens serving outside India.

Overtime allowance (C) — fully taxable as salary under Section 17(1).

Non-practicing allowance (E) — fully taxable as a regular component of salary income.
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Question 31
A prudent financial policy suggested by Marris Hypothesis to maximize balanced growth of the firm is based on which of following financial ratios?

A. Return on investment ratio
B. Debt equity ratio
C. Return on capital employed ratio
D. Liquidity ratio
E. Retention ratio

Choose the correct answer from the options given below:
1. A(A), (B) and (C) only
2. B(B), (C) and (D) only
3. C(A), (C) and (D) only
4. D(B), (D) and (E) only
Answer: (D) (B), (D) and (E) only
Explanation
In Robin Marris's managerial growth model, managers maximize balanced growth subject to a financial security constraint determined by three policy ratios.

Debt-equity ratio (B) — Leverage ratio chosen to balance expansion against financial distress risk.

Liquidity ratio (D) — Proportion of liquid assets held to absorb operational shocks and prevent bankruptcy.

Retention ratio (E) — Share of net earnings retained to finance internal investment without diluting management control.

Profitability ratios (A and C) — Return on investment and ROCE reflect operational performance outcomes rather than the managerial financial security policy levers specified by Marris.
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Question 32
Preference share in India is issued by a company for a maximum period of:
1. A10 years
2. B15 years
3. C20 years
4. DUnlimited period
Answer: (C) 20 years
Explanation
Section 55 of the Companies Act 2013 prohibits companies limited by shares from issuing irredeemable preference shares and establishes statutory redemption limits.

A. 10 years — wrong. There is no general 10-year statutory cap for preference shares in India.

B. 15 years — wrong. Indian corporate law specifies a longer maximum tenor for preference capital.

C. 20 years — correct. Section 55(1) mandates that all preference shares must be redeemable within a maximum statutory period not exceeding 20 years from the date of allotment.

D. Unlimited period — wrong. Irredeemable preference shares are strictly illegal under the Companies Act 2013.
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Question 33
Which one of the following theories describes FDI flows in ecosystems?
1. AProduct Life Cycle Theory
2. BFactor Endowment Theory
3. CWaterfall Theory
4. DNew Trade Theory
Answer: (A) Product Life Cycle Theory
Explanation
Raymond Vernon's Product Life Cycle Theory models how international trade and Foreign Direct Investment evolve dynamically as a product progresses through its commercial stages.

A. Product Life Cycle Theory — correct. Explains foreign direct investment outlays when mature products encounter standardizing production techniques, shifting manufacturing facilities to lower-cost emerging host countries.

B. Factor Endowment Theory — wrong. The Heckscher-Ohlin model explains merchandise trade patterns from comparative factor abundance rather than corporate FDI flows.

C. Waterfall Theory — wrong. Refers to sequential market entry models in international marketing rather than an overarching theory of FDI.

D. New Trade Theory — wrong. Paul Krugman's model focuses on intra-industry trade driven by economies of scale and network effects.
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Question 34
Break-even point is not affected with the changes in which one of the following?
1. ASale price per unit
2. BVariable cost per unit
3. CNumber of units sold
4. DTotal fixed costs
Answer: (C) Number of units sold
Explanation
The break-even point is an intrinsic property of a firm's cost and revenue structure, defined mathematically as:

Break-even Units = Total Fixed Costs / (Selling Price per unit - Variable Cost per unit)

A. Sale price per unit — changes unit contribution margin, shifting the break-even point.

B. Variable cost per unit — alters contribution margin per unit, shifting the break-even volume.

C. Number of units sold — correct. Actual units sold determines realized operating profit or loss, but leaves the computed break-even volume unchanged.

D. Total fixed costs — directly alters the numerator of the formula, changing the required break-even output.
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Question 35

Match List I with List II:

List I - International Trade Theories	List II - Expounders
(A) Absolute Advantage	(I) David Ricardo
(B) Factor Endowments	(II) Minhas, Leontief et. al.
(C) Factor-Intensity Reversal	(III) Adam Smith
(D) Comparative Advantage	(IV) Heckscher - Ohlin

A(A) - (III), (B) - (II), (C) - (IV), (D) - (I)
B(A) - (III), (B) - (IV), (C) - (II), (D) - (I)
C(A) - (I), (B) - (IV), (C) - (II), (D) - (III)
D(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

Answer: (B) (A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Explanation

Classical and modern international trade theories explain cross-border trade specialization based on cost differentials, factor endowments, and input substitution patterns.

A-III, B-IV, C-II, D-I

Absolute Advantage (A) — Formulated by Adam Smith (III) in 1776, proposing that nations export goods they produce with absolute efficiency.
Factor Endowments (B) — Developed by Eli Heckscher and Bertil Ohlin (IV), asserting that countries export goods intensive in their abundant factors.
Factor-Intensity Reversal (C) — Investigated empirically by Bagicha Minhas, Wassily Leontief, and associates (II) as an exception to standard Heckscher-Ohlin assumptions.
Comparative Advantage (D) — Formulated by David Ricardo (I) in 1817, demonstrating mutual trade benefits based on relative opportunity cost differentials.

Question 36
The qualified characteristics determining (constituting) consumer 'rationality' includes which of the following?

A. Economic selfish motives
B. Risk-return optimiser
C. Clarity of preferences
D. Possession of information
E. Non-satiation of needs

Choose the correct answer from the options given below:
1. A(A), (B) and (C) only
2. B(C), (D) and (E) only
3. C(A), (B), (C) and (D) only
4. D(A), (C), (D) and (E) only
Answer: (D) (A), (C), (D) and (E) only
Explanation
Standard microeconomic consumer theory defines consumer rationality through utility maximization axioms.

Economic selfish motives (A) — fundamental assumption. Consumers consistently seek to maximize their personal utility.

Clarity of preferences (C) — fundamental axiom. Preferences must satisfy completeness and transitivity.

Possession of information (D) — core condition. Consumers are assumed to possess adequate market knowledge regarding prices, qualities, and alternatives.

Non-satiation of needs (E) — monotonicity axiom. Consumers prefer more of a commodity bundle to less.

Risk-return optimizer (B) — specialized finance assumption from modern portfolio theory, not an essential prerequisite of classical consumer rationality.
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Question 37
The current market price per share of New Age Limited is Rs. 80. The dividend expected a year from now is Rs. 4 and it is expected to grow at a constant rate of 10 percent. The floatation (issue) cost for the new issue will be 8 percent. What is the cost of new equity?
1. A15.43 percent
2. B15.00 percent
3. C5.00 percent
4. D5.43 percent
Answer: (A) 15.43 percent
Explanation
The cost of newly issued equity capital using Gordon's constant dividend growth model is computed from net issue proceeds:

Ke = (D1 / Net Proceeds) + g

Net Proceeds = Market Price * (1 - Flotation Cost) = 80 * (1 - 0.08) = Rs 73.60

Ke = (4 / 73.60) + 0.10 = 0.05435 + 0.10 = 0.15435 or 15.43%

This confirms the cost of new equity is 15.43 percent.
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Question 38
From the following, select the right option with reference to the working capital:
1. AHigher net working capital leads to higher liquidity and higher profitability
2. BAccording to hedging approach. current assets should be financed from long-term sources.
3. CThere is an inverse relationship between the length of operating cycle of a firm and its working capital requirements.
4. DTrade-off plan, in general, is considered an appropriate financing strategy for working capital.
Answer: (D) Trade-off plan, in general, is considered an appropriate financing strategy for working capital.
Explanation
Working capital financing strategies navigate the fundamental risk-return tradeoff between liquidity and profitability.

A. Higher net working capital leads to higher profitability — wrong. Holding excessive liquid current assets depresses profitability due to low yields on cash.

B. Hedging approach finances all current assets with long-term sources — wrong. Hedging matches asset life with debt maturity, financing temporary current assets with short-term funds.

C. Inverse relationship between operating cycle and working capital — wrong. A longer operating cycle locks up operational cash longer, directly increasing working capital requirements.

D. Trade-off plan is an appropriate financing strategy — correct. A balanced trade-off policy compromises between conservative safety and aggressive low-cost debt.
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Question 39
Arrange the following steps in the process of GDR Issues:

A. Registration with prescribed authority
B. Appointment and vesting of shares with the custodian
C. Approval of the regulatory authorities
D. Listing of GDR
E. GDR allotment

Choose the correct answer from the options given below:
1. A(C), (A), (B), (E), (D)
2. B(A), (B), (C), (D), (E)
3. C(A), (C), (B), (E), (D)
4. D(B), (A), (C), (D), (E)
Answer: (A) (C), (A), (B), (E), (D)
Explanation
Issuing Global Depository Receipts (GDRs) in overseas capital markets follows a strict procedural and regulatory sequence.

(C) -> (A) -> (B) -> (E) -> (D)

Approval of the regulatory authorities (C) — The issuing company first obtains necessary in-principle clearances from domestic regulators like RBI, SEBI, and the Ministry of Finance.

Registration with prescribed authority (A) — Regulatory registration and filing of the offering prospectus with overseas securities authorities are executed.

Appointment and vesting of shares with custodian (B) — A domestic custodian bank is appointed to hold physical custody of the underlying equity shares.

GDR allotment (E) — The overseas depository bank creates and issues corresponding depository receipts to international investors.

Listing of GDR (D) — The receipts are formally admitted to quotation and trading on international exchanges such as London or Luxembourg.
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Question 40
Arrange the following negotiation rounds of WTO (World Trade Organisation) in reverse chronological order:

A. Uruguay Round
B. Geneva Round
C. Kennedy Round
D. Doha Round
E. Tokyo Round

Choose the correct answer from the options given below:
1. A(A), (C), (D), (B), (E)
2. B(D), (A), (E), (C), (B)
3. C(B), (A), (C), (E), (D)
4. D(D), (E), (A), (C), (B)
Answer: (B) (D), (A), (E), (C), (B)
Explanation
Multilateral trade rounds conducted under the auspices of GATT and the WTO proceeded historically as follows:

Geneva Round (B) — 1947

Kennedy Round (C) — 1964-1967

Tokyo Round (E) — 1973-1979

Uruguay Round (A) — 1986-1994

Doha Round (D) — 2001-present

Arranging these rounds in reverse chronological order (most recent first) yields the sequence: Doha (D) -> Uruguay (A) -> Tokyo (E) -> Kennedy (C) -> Geneva (B).
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Question 41
In case of a warranty, the buyer can:
1. ARepudiate the contract
2. BClaim damages only
3. CReturn the goods
4. DRefuse to pay the price
Answer: (B) Claim damages only
Explanation
Section 12(3) of the Sale of Goods Act 1930 defines the legal remedy available for breach of a warranty.

A. Repudiate the contract — wrong. Breach of condition allows contract repudiation, but breach of warranty does not.

B. Claim damages only — correct. A warranty is collateral to the primary contractual purpose, entitling the injured buyer to monetary damages only.

C. Return the goods — wrong. The buyer cannot reject goods or return them solely on grounds of breach of warranty.

D. Refuse to pay the price — wrong. The buyer must honor the contract price, seeking recoupment through damages.
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Question 42
Written plan containing the details regarding the conduct of a particular audit is called:
1. AAudit Memorandum
2. BAudit Planning Procedure
3. CAudit Notebook
4. DAudit Programme
Answer: (D) Audit Programme
Explanation
Standard auditing practices distinguish planning blueprints and operational documentation by specific functional titles.

A. Audit Memorandum — wrong. A summary document recording key audit findings and unresolved technical issues.

B. Audit Planning Procedure — wrong. A descriptive term for the general process of formulating the audit approach.

C. Audit Notebook — wrong. A diary maintained by audit staff to record daily queries, discrepancies, and observations.

D. Audit Programme — correct. A structured, written procedural blueprint outlining the audit scope, verification steps, and staff allocations for a specific engagement.
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Question 43
A price ceiling below the equilibrium price possibly leads to which of the following?

A. Black marketing
B. Commodity glut
C. Shortage of commodity
D. Commodity export
E. Price decline

Choose the correct answer from the options given below:
1. A(A) and (B) only
2. B(D) and (E) only
3. C(A) and (C) only
4. D(A), (B) and (C) only
Answer: (C) (A) and (C) only
Explanation
When the government establishes a legal price ceiling below the free-market equilibrium price, excess demand inevitably arises.

Shortage of commodity (C) — At the artificially low ceiling price, quantity demanded exceeds quantity supplied, creating an acute supply deficit.

Black marketing (A) — Because official supplies are rationed, secondary illegal trading channels emerge where desperate buyers pay unauthorized premiums.

Commodity glut (B) — Surpluses arise from legal price floors (minimum support prices) set above equilibrium, not from price ceilings.
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Question 44
Which one of the following is an example of Secondary Reserves?
1. ACash in hand and balances with other banks in current account
2. BBalances with RBI for CRR
3. CInvestment in Commercial Paper
4. DInvestment in Government Securities for SLR
Answer: (C) Investment in Commercial Paper
Explanation
In commercial bank asset management, secondary reserves comprise liquid, interest-bearing short-term money market instruments that provide a second line of liquidity defense.

A. Cash in hand and bank balances — primary reserves. Non-interest-earning liquid cash balances held to meet daily clearing requirements.

B. Balances with RBI for CRR — primary reserves. Statutory non-interest-earning reserves mandated under Section 42 of the RBI Act.

C. Investment in Commercial Paper — secondary reserves. High-quality, short-term money market assets that generate yield while remaining readily convertible into cash.

D. Investment in Government Securities for SLR — statutory liquid assets held specifically to comply with statutory liquidity ratio mandates.
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Question 45
When a monopolist switches from charging a single price to perfect price discrimination, it reduces:
1. AThe quantity produced
2. BThe firm's profit
3. CConsumer surplus
4. DTotal surplus
Answer: (C) Consumer surplus
Explanation
Under first-degree or perfect price discrimination, a monopolist charges each consumer their exact reservation price.

A. The quantity produced — increases. Output expands to the competitive output level where price equals marginal cost.

B. The firm's profit — increases. Monopoly profit is maximized by capturing all gains from trade.

C. Consumer surplus — reduces to zero. Every unit of consumer surplus is converted into producer surplus.

D. Total surplus — increases. Deadweight loss is completely eliminated, maximizing total social welfare.
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Question 46
Choose the correct options regarding banking:

A. Chain banking indicates the form of bank cartel that occurs when a small group of people control atleast three banks that are independently chartered
B. PAN number is required for deposits in a commercial bank for Rs. 50,000 and above
C. Upon detection of counterfeit notes at the counter, the bank can impound the note and issue receipt
D. The interest rates on bank's contribution to Rural Infrastructure Development Fund is fixed by NABARD
E. RBI Act. 1934 allows the making or issuing of a promissory note expressed to be payable to the bearers thereof

Choose the correct answer from the options given below:
1. A(B), (D), (E) only
2. B(B), (C) only
3. C(A), (D), (E) only
4. D(A), (B), (C)
Answer: (B) (B), (C) only
Explanation
Banking regulations in India impose strict statutory compliance regarding customer identification, counterfeit currency handling, and debt instrument issuance.

PAN number requirement (B) — correct. Rule 114B of the Income Tax Rules requires quoting of PAN for cash deposits of Rs 50,000 or more in a day.

Counterfeit note impounding (C) — correct. RBI directions mandate bank tellers to immediately impound counterfeit notes and issue an official acknowledgement receipt rather than returning them.

Promissory note payable to bearer (E) — incorrect. Section 31 of the RBI Act 1934 prohibits anyone other than the RBI or Central Government from issuing demand bearer promissory notes.

RIDF interest rates (D) — incorrect. RIDF deposit interest rates are determined by the Reserve Bank of India, not NABARD.
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Question 47
Under the Vivad se Vishwas Act, 2020 the amount payable by the declarant U/S 3 on or after April 1, 2020 is:
1. AAmount of disputed tax
2. BThe aggregate of the amount of disputed tax and 10% of disputed tax
3. CAmount of penalty and amount computed by CBDT.
4. DAverage of tax arrears for last three assessment years.
Answer: (B) The aggregate of the amount of disputed tax and 10% of disputed tax
Explanation
The Direct Tax Vivad se Vishwas Act 2020 established statutory dispute resolution terms across dual filing timeframes.

On or before March 31, 2020 — Declarants were required to pay exactly 100% of the disputed tax with complete waiver of interest and penalty.

On or after April 1, 2020 — Under the statutory schedule to Section 3, the settlement amount increased to 110% of disputed tax, structured as the aggregate of the disputed tax plus 10% of the disputed tax.
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Question 48
In a statistical experiment, an effect size is described as:
1. AEffective testing of hypothesis
2. BProbable success of an experimental manipulation
3. CQuantitative measurement of the magnitude of the experimental effect
4. DStandardised measure of the magnitude of the effect observed in an experiment
Answer: (C) Quantitative measurement of the magnitude of the experimental effect
Explanation
In quantitative research and experimental design, effect size provides an empirical evaluation beyond bare statistical significance.

A. Effective testing of hypothesis — wrong. Describes the overall power and design validity of hypothesis testing procedures.

B. Probable success of an experimental manipulation — wrong. Confounds probability of achieving statistical significance with actual effect magnitude.

C. Quantitative measurement of the magnitude of the experimental effect — correct. Effect size specifically quantifies the practical magnitude or strength of the experimental outcome or relationship between variables.

D. Standardised measure — although standardized metrics like Cohen's d exist, the accepted definition designates the general quantitative magnitude of the effect.
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Question 49
Sequence the following in copyright ecosystem for literary creation under the Indian Copyright Act, 1957:

A. Public communication
B. Copyright assignment
C. Content development
D. Relinquish copyright
E. Copyright transmission

Choose the correct answer from the options given below:
1. A(A) -> (E) -> (B) -> (D) -> (C)
2. B(C) -> (A) -> (B) -> (E) -> (D)
3. C(E) -> (C) -> (B) -> (D) -> (A)
4. D(B) -> (C) -> (E) -> (A) -> (D)
Answer: (B) (C) -> (A) -> (B) -> (E) -> (D)
Explanation
The life cycle of intellectual property rights in a literary work under the Copyright Act 1957 follows an organic legal chronology.

(C) -> (A) -> (B) -> (E) -> (D)

Content development (C) — The author first conceives, drafts, and fixes the original literary work into a tangible medium.

Public communication (A) — The work is communicated to the public through publication, performance, or dissemination.

Copyright assignment (B) — The author assigns economic rights to publishers under Sections 18 and 19.

Copyright transmission (E) — Rights are subsequently transmitted through inheritance, bequest, or operation of law.

Relinquish copyright (D) — Under Section 21, the author may voluntarily surrender all rights by submitting formal notice to the Registrar of Copyrights.
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Question 50
The standard error is a statistical measure of:
1. AThe normal distribution of scores around the sample mean.
2. BThe extent to which a sample mean is likely to differ from the population mean.
3. CThe clustering of scores at each end of a survey scale.
4. DThe degree to which the sample has been accurately stratified.
Answer: (B) The extent to which a sample mean is likely to differ from the population mean.
Explanation
In inferential statistics, the standard error of the mean (SE = sigma / sqrt(n)) gauges the precision of a sample statistic.

A. Normal distribution of scores around sample mean — wrong. This is measured by the sample standard deviation.

B. Extent to which sample mean differs from population mean — correct. The standard error quantifies sampling variability, indicating how far sample means typically deviate from the true population mean.

C. Clustering of scores at each end — wrong. Describes bimodal dispersion or survey polarization.

D. Accurate stratification — wrong. Pertains to stratified sampling design quality rather than sampling error estimation.
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Question 51
Logically sequence the following economic entities/identities in understanding the theory of consumer choice:

A. Budget line
B. Utility analysis
C. Demand curve analysis
D. Indifference curve analysis
E. Consumer equilibrium

Choose the correct answer from the options given below:
1. A(D) -> (E) -> (A) -> (B) -> (C)
2. B(B) -> (D) -> (A) -> (E) -> (C)
3. C(B) -> (C) -> (D) -> (A) -> (E)
4. D(B) -> (D) -> (A) -> (C) -> (E)
Answer: (B) (B) -> (D) -> (A) -> (E) -> (C)
Explanation
Understanding consumer choice theory evolves conceptually from subjective utility analysis to ordinal indifference curves, budget constraints, equilibrium tangency, and derived demand schedules.

(B) -> (D) -> (A) -> (E) -> (C)

Utility analysis (B) — Classical cardinal utility theory establishes foundational consumer satisfaction concepts.

Indifference curve analysis (D) — Ordinal indifference curves map combinations of goods yielding identical consumer utility.

Budget line (A) — The budget line is introduced to establish affordability boundaries given prices and money income.

Consumer equilibrium (E) — Consumer equilibrium is achieved where the highest attainable indifference curve is tangent to the budget line.

Demand curve analysis (C) — Individual demand curves are derived by tracing equilibrium changes across various price points.
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Question 52
"If you know the enemy and know yourself, you need not fear the result of a hundred battles,"
Above statement of Sun Tzu corresponds to which one of the following components of Porter's Five Forces Model?
1. AThreat of substitutes
2. BThreat of Competitor
3. CBargain Power of Supplier
4. DThreat of New Entrants
Answer: (B) Threat of Competitor
Explanation
Sun Tzu's ancient military aphorism emphasizes competitive intelligence, strategic positioning, and rival benchmarking.

A. Threat of substitutes — wrong. Pertains to alternative products from other industries serving identical functional needs.

B. Threat of Competitor — correct. In Michael Porter's model, understanding competitive rivalry requires evaluating existing competitors' strengths, weaknesses, and retaliatory capacity.

C. Bargain Power of Supplier — wrong. Relates to input cost control and supplier concentration leverage.

D. Threat of New Entrants — wrong. Addresses prospective industry entrants and structural barrier heights.
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Question 53
Which one of the following is false with respect to interest rate structure in the Indian money market?
1. AA very tight liquidity position will increase the call rates while excess liquidity will give fairly low and stable rates.
2. BIf the liquidity crunch of the banks is passed on to the system, it may lead to high volatility in the call rates.
3. CCall rates under normal liquidity conditions are the cap rate for the term money market.
4. DIn a volatile call market situation, lending will yield high return and by selling Inter-bank participation, the bank will have more money to play in the call market.
Answer: (C) Call rates under normal liquidity conditions are the cap rate for the term money market.
Explanation
In money market microstructure, overnight call money rates serve as the baseline funding floor rather than a ceiling for longer-tenor term money.

A. Tight liquidity increases call rates — true. Deficit liquidity compels banks to borrow overnight funds aggressively, spiking call rates.

B. Passing on liquidity crunch causes volatility — true. Transmission of liquidity stress causes rapid gyrations in interbank call rates.

C. Call rates are the cap rate for term money market — false. Under normal market conditions, longer-tenor term money rates trade at a premium above overnight call rates to compensate for term and liquidity risks.

D. Selling Inter-bank participation provides call liquidity — true. Securitizing inter-bank participation certificates frees up liquid cash to deploy in lucrative call lending.
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Question 54
A co-efficient of correlation having a value of +0.87 implies that -
1. ACo-efficient of correlation is strong and positive.
2. BCo-efficient of determination is extremely weak.
3. CThe relationship between two variables is weak, but positive.
4. DThe relationship between two variables is strong.
Answer: (A) Co-efficient of correlation is strong and positive.
Explanation
Karl Pearson's correlation coefficient r measures the magnitude and direction of linear association between two continuous variables.

A. Strong and positive — correct. Correlation values between +0.70 and +1.00 denote a strong positive linear relationship.

B. Co-efficient of determination is extremely weak — wrong. The coefficient of determination r^2 is (0.87)^2 = 0.7569, explaining over 75% of variance.

C. Weak, but positive — wrong. Weak correlation typically ranges below +0.30.

D. Incomplete statement — misses the positive directional specification explicitly articulated in option A.
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Question 55
In Fund Flow Statement, which one of the following is not a valid statement?
1. AIt is prepared to know the total sources and their uses in a year.
2. BDividend received is a source of funds.
3. CIts preparation is at the discretion of the management.
4. DIt is useful for external financial management.
Answer: (D) It is useful for external financial management.
Explanation
A Fund Flow Statement is an internal management accounting report rather than an external financial reporting instrument.

A. Prepared to know sources and uses — valid. The core objective is tracking inflows and applications of net working capital.

B. Dividend received is a source of funds — valid. Inflows from investment dividends generate additional working capital.

C. Preparation at management discretion — valid. Unlike balance sheets and cash flow statements, fund flow statements are not mandatory statutory filings.

D. Useful for external financial management — invalid. It is primarily designed for internal managerial planning and capital allocation rather than external stakeholder management.
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Question 56
Which of the following statements are correct?

A. The difference between sample variance and population variance computation is mu replaced by x_bar
B. Cronbach alpha value less than 0.30 indicates reliability of research instrument
C. The value of R2 = 1 may imply that regression is spurious
D. The identical observation of sample and population parameters shows that every sample can be substituted as population
E. Randomise control trial is a qualitative approach to research

Choose the correct answer from the options given below:
1. A(C), (D), (E) only
2. B(A), (B), (C), (D) only
3. C(A), (C), (D), (E) only
4. D(B), (C), (D) only
Answer: (C) (A), (C), (D), (E) only
Explanation
The official examination key accepted option combination (A), (C), (D), and (E) as the designated response.

Statement B is unquestionably false — Cronbach's alpha values below 0.30 indicate poor and unacceptable internal consistency reliability, eliminating options containing B.

Statement C — An R^2 value equal to 1 in time-series data frequently flags spurious regression due to non-stationarity.

Statement A — Loosely contrasts sample mean substitution against the true population mean.

Statements D and E — Retained as keyed under examination scoring parameters despite methodological idiosyncrasies.
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Question 57
The banks wherein a majority of depositors are non-residents are called
1. ACross Payment Banks
2. BCurrency Banks
3. CForeign Banks
4. DOffshore Banks
Answer: (D) Offshore Banks
Explanation
Specialized banking jurisdictions establish regulatory frameworks for institutions serving non-resident clientele.

A. Cross Payment Banks — wrong. Non-standard industry terminology.

B. Currency Banks — wrong. Pertains to central monetary authorities or currency exchange houses.

C. Foreign Banks — wrong. Domestic branches of foreign institutions serving predominantly domestic residents.

D. Offshore Banks — correct. Financial institutions incorporated in special economic or foreign jurisdictions whose primary liabilities and assets are denominated in foreign currencies from non-resident depositors.
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Question 58
Given below are two statements:

Statement I: Marketing managers must calculate customer lifetime values of their customer base to understand their profit implications.
Statement II: Activity - based costing, an accounting technique, is very useful for conducting customer profitability analysis.

In the light of the above statements, choose the most appropriate answer from the options given below:
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (A) Both Statement I and Statement II are correct
Explanation
Contemporary customer relationship management combines marketing analytics with managerial cost accounting.

Statement I is correct — Customer Lifetime Value (CLV) quantifies the present discounted value of future net margins generated by a customer, clarifying acquisition and retention expenditure.

Statement II is correct — Activity-Based Costing (ABC) traces non-manufacturing customer support, order fulfillment, and servicing costs directly to individual customer accounts, enabling precise customer profitability analysis.
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Question 59
Which one of the following motives characterizes dominant organizational climate of university teaching departments/scientific organizations?
1. AAffiliation
2. BExtension
3. CExpert power
4. DAchievement
Answer: (C) Expert power
Explanation
In Udai Pareek's organizational motivational climate framework, diverse institutional settings are dominated by distinct psychological motivators.

A. Affiliation — characterizes informal, relationship-centered social or welfare organizations.

B. Extension — dominates community development, social reform, and philanthropic organizations.

C. Expert power — correct. Dominates academic university faculties, specialized research laboratories, and scientific institutions where intellectual mastery, specialized expertise, and technical competence form the basis of organizational authority and influence.

D. Achievement — typically dominates commercial enterprises, entrepreneurial ventures, and competitive sales corporations.
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Question 60
Which of the following decision choices are valid in relation to marginal costing?

A. Costing 'special' or 'one-off opportunity
B. Deciding whether to make or buy a product
C. Most appropriate technique because of the application of more automation in the industry
D. Choosing between competing alternative actions
E. Employing a penetration or destroyer pricing strategy

Choose the correct answer from the options given below:
1. A(A), (B), (D) and (E) only
2. B(A), (B), (C) and (D) only
3. C(B), (C), (D) and (E) only
4. D(A), (D) and (E) only
Answer: (A) (A), (B), (D) and (E) only
Explanation
Marginal costing focuses exclusively on variable cost behavior to evaluate incremental contribution margins for short-term operational decisions.

Special order opportunities (A) — valid application. Spare capacity is evaluated by checking if incremental revenue exceeds variable cost.

Make or buy decisions (B) — valid application. In-house variable manufacturing costs are compared against external vendor prices.

More automation (C) — invalid. High automation expands fixed overhead costs while shrinking variable labor, making marginal costing less suitable than Activity-Based Costing.

Choosing between competing actions (D) — valid application. Projects are ranked based on contribution per limiting factor.

Penetration or predatory pricing (E) — valid application. Short-run pricing strategies rely on marginal cost floors to capture market share.
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Question 61
"Hospital administration may think that patients want better food, but patients may be more concerned with nurse responsiveness"
Above statement pertains to which one of the following service gaps?
1. AGap between consumer expectation and management perception.
2. BGap between management perception and service-quality specification.
3. CGap between service delivery and external communication.
4. DGap between service-quality specifications and service delivery.
Answer: (A) Gap between consumer expectation and management perception.
Explanation
The Parasuraman, Zeithaml, and Berry (PZB) SERVQUAL Service Quality Model defines operational service failure across five systemic gaps.

A. Gap 1 (Management Perception Gap) — correct. The divergence between what customers truly expect and what management believes customers expect, illustrated by misjudging patient priorities between catering quality and nursing responsiveness.

B. Gap 2 (Service Standards Gap) — divergence between management's perception of customer expectations and the formal service specifications established.

C. Gap 4 (Communication Gap) — discrepancy between actual service delivered and the representations made in external advertising.

D. Gap 3 (Service Performance Gap) — failure of service personnel to perform up to established operational standards.
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Question 62
Which of the following constructs hold true for research analysis and design?

A. Research design is a framework for every stage of the collection and analysis of data
B. The choice between qualitative and quantitative methods in a research experiment depends upon Cronbach alpha
C. Experiments as source of data is not appropriate for a qualitative study
D. Plagiarism is the failure of researcher to acknowledge the borrowed material in his/her publication
E. Content Analysis is a method commonly used in qualitative research to aid data collection

Choose the correct answer from the options given below:
1. A(A), (B), (E) only
2. B(B), (C), (D) only
3. C(A), (C), (D), (E) only
4. D(B), (E) only
Answer: (C) (A), (C), (D), (E) only
Explanation
Scientific inquiry and research methodology govern research blueprints, data integrity, and analytical paradigms.

Research design as framework (A) — true. It provides the structured blueprint guiding sampling, measurement, and data analysis.

Cronbach alpha dictates methodology (B) — false. Cronbach's alpha assesses scale internal consistency reliability, having no role in selecting overarching research philosophy.

Experiments not appropriate for qualitative study (C) — true. Controlled experimental manipulation belongs to the quantitative positivist paradigm.

Plagiarism definition (D) — true. Presenting external ideas or texts without attribution constitutes academic plagiarism.

Content analysis in qualitative research (E) — true. Content analysis is widely used to code textual and unstructured qualitative data.
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Question 63
Answer the correct material usage variance from the information given below:
Standard material cost for manufacturing 1000 units of an output is 400 kgs of material at Rs. 2.50 per kg.
When 2000 units are produced, it is found that actual consumption was of 825 kgs material at a price of Rs. 2.70 per kg.:
1. ARs. 67.50 Favourable
2. BRs. 67.50 Adverse
3. CRs. 62.50 Favourable
4. DRs. 62.50 Adverse
Answer: (D) Rs. 62.50 Adverse
Explanation
Material Usage Variance (MUV) isolates the physical efficiency of raw material consumption valued at standard cost.

MUV = Standard Price * (Standard Quantity for actual output - Actual Quantity)

Standard Quantity for 2000 units = (400 kg / 1000 units) * 2000 units = 800 kg

Actual Quantity consumed = 825 kg

Standard Price = Rs 2.50 per kg

MUV = Rs 2.50 * (800 kg - 825 kg) = Rs 2.50 * (-25 kg) = - Rs 62.50

The resulting figure represents an unfavorable variance of Rs 62.50 Adverse.
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Question 64
A spot sale of a currency combined with a forward repurchase of the same currency is called which one of the following?
1. AForex swap
2. BSwap rate
3. CForward rate
4. DSpot rate
Answer: (A) Forex swap
Explanation
Foreign exchange market mechanisms enable institutions to manage temporary currency imbalances without incurring open exchange rate risk.

A. Forex swap — correct. Simultaneous purchase and sale of identical amounts of currency for two different settlement dates, such as a spot sale coupled with a forward repurchase.

B. Swap rate — wrong. The price differential in points between the spot exchange rate and the forward rate.

C. Forward rate — wrong. The contractually locked exchange rate applicable to a future delivery date.

D. Spot rate — wrong. The prevailing exchange rate quoted for immediate settlement, typically within two business days.
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Question 65
Under which one of the following the Basel framework places restrictions on participation by banks in system-wide credit booms with the aim of reducing their losses in credit bust?
1. ACatastrophic Reserve Capital
2. BCountercyclical Capital Buffer
3. CDeferred Capital
4. DConservative Preference Capital
Answer: (B) Countercyclical Capital Buffer
Explanation
Basel III macroprudential regulations introduced capital buffers specifically designed to counteract cyclical macrofinancial vulnerabilities.

A. Catastrophic Reserve Capital — wrong. Fictitious regulatory designation.

B. Countercyclical Capital Buffer — correct. Mandates that banks accumulate an additional Common Equity Tier 1 capital buffer between 0% and 2.5% during excessive system-wide credit expansion, which is drawn down during downturns.

C. Deferred Capital — wrong. An accounting concept relating to equity reserves.

D. Conservative Preference Capital — wrong. Non-existent Basel capital classification.
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Question 66
Which one of the following is not an advantage of organization structure by territory?
1. AMakes control easy for top management
2. BPlaces responsibility at a lower level
3. CImproves coordination in a region
4. DTakes advantage of economies of local operations
Answer: (A) Makes control easy for top management
Explanation
Territorial or geographic departmentalization structures enterprise activities around distinct regional markets.

A. Makes control easy for top management — not an advantage. Geographic dispersion makes headquarters monitoring, communication, and executive control substantially more challenging.

B. Places responsibility at a lower level — valid advantage. Empowers regional division heads to respond autonomously to local operational conditions.

C. Improves coordination in a region — valid advantage. Aligns sales, logistics, and customer service teams within the regional jurisdiction.

D. Economies of local operations — valid advantage. Reduces transportation freight and leverages localized supplier networks.
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Question 67
From which of the following, employees derive authority?

A. Position
B. Experience
C. Moral worth
D. Past service
E. Intelligence

Choose the correct answer from the options given below:
1. A(A), (B) only
2. B(A), (E) only
3. C(B), (C), (E) only
4. D(A), (B), (C), (D), (E)
Answer: (D) (A), (B), (C), (D), (E)
Explanation
In classical administrative theory, Henri Fayol distinguished between formal organizational authority and informal personal authority.

Position (A) — official authority. Derives directly from hierarchical office and legal entitlement.

Experience (B), Moral worth (C), Past service (D), and Intelligence (E) — personal authority. Fayol asserted that effective leadership requires personal authority compounded of intelligence, experience, moral integrity, and proven past service.

Therefore, employees and managers derive authority across all five elements.
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Question 68
Arm's length price computation method under 92(C) of the Income Tax Act, 1961 does not include which one of the following?
1. AComparable uncontrolled price
2. BTransaction net margin
3. CResale price
4. DSlum sale price method
Answer: (D) Slum sale price method
Explanation
Section 92C of the Income Tax Act 1961 specifies six statutory transfer pricing methods for computing the Arm's Length Price in cross-border transactions.

Comparable uncontrolled price (A) — statutory method under Section 92C(1)(a).

Transactional net margin (B) — statutory method under Section 92C(1)(e).

Resale price method (C) — statutory method under Section 92C(1)(b).

Slum sale price method (D) — not an arm's length method. Slum sale is a domestic capital gains concept governed separately under Section 50B.
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Question 69
Match List I with List II:
List I - Ind AS List II - Topic
(A) Ind AS 1 (I) Income Taxes
(B) Ind AS 12 (II) Related Party Disclosures
(C) Ind AS 24 (III) Intangible Assets
(D) Ind AS 38 (IV) Presentation of Financial Statements
1. A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. B(A) - (IV), (B) - (I), (C) - (II), (D) - (III)
3. C(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
4. D(A) - (II), (B) - (IV), (C) - (I), (D) - (III)
Answer: (B) (A) - (IV), (B) - (I), (C) - (II), (D) - (III)
Explanation
Indian Accounting Standards (Ind AS) codified by the Ministry of Corporate Affairs align domestic reporting with International Financial Reporting Standards.

A-IV, B-I, C-II, D-III

Ind AS 1 (A) — Presentation of Financial Statements (IV), establishing overall structure and minimum presentation contents.

Ind AS 12 (B) — Income Taxes (I), specifying accounting for current tax and deferred tax liabilities and assets.

Ind AS 24 (C) — Related Party Disclosures (II), ensuring transparency regarding transactions with related entities and key managerial personnel.

Ind AS 38 (D) — Intangible Assets (III), governing criteria for recognizing and measuring intangible assets like patents and goodwill.
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Question 70

Match List I with List II:

List I - Promotional Campaign	List II - Company
(A) #StayStrongMoms	(I) Pepsico India
(B) #JeetKiOre	(II) Hindustan Unilever (HUL)
(C) #Lets unstereotypeIndia	(III) Indian Tobacco Company (ITC)
(D) #Freedomtolove	(IV) Brooke Bond India

A(A) - (III), (B) - (I), (C) - (IV), (D) - (II)
B(A) - (II), (B) - (IV), (C) - (I), (D) - (III)
C(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
D(A) - (I), (B) - (III), (C) - (IV), (D) - (II)

Answer: (A) (A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Explanation

Major FMCG corporate promotional campaigns are associated with their sponsoring parent brands.

A-III, B-I, C-IV, D-II

#StayStrongMoms (A) — ITC initiative (III) launched under personal care and consumer wellness banners supporting mothers.
#JeetKiOre (B) — Pepsico India (I) motivational campaign rolled out across sports and nutrition brand activations.
#Lets unstereotypeIndia (C) — Brooke Bond India / Unilever (IV) campaign addressing cultural and gender stereotyping in beverage advertising.
#Freedomtolove (D) — Hindustan Unilever (II) socially inclusive campaign championing diversity and equality.

Question 71
Which one of the following is a Trade related entry mode in international markets?
1. AManagement Contract
2. BInternational Licensing
3. CInternational Leasing
4. DPortfolio Investments
Answer: (A) Management Contract
Explanation
Foreign market entry strategy literature evaluates modes by operational involvement and trade facilitation.

A. Management Contract — accepted answer in the examination key. Under a management contract, the operational firm frequently secures ancillary export trade for equipment, spare parts, and intermediate supplies to the managed host entity.

B. International Licensing — contractual non-equity entry mode where intellectual property rights are granted.

C. International Leasing — cross-border asset financing technique.

D. Portfolio Investments — passive financial foreign investment devoid of operational or managerial control.
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Question 72
Which of the following are essentially anti-competitive agreements as per the Competition Act, 2002 in India?

A. Exclusive distribution agreement
B. Resale price maintenance
C. Exclusive supply agreement
D. Non-compete agreement
E. Tie-in agreement

Choose the correct answer from the options given below:
1. A(A), (B) and (C) only
2. B(C), (D) and (E) only
3. C(A), (B), (C) and (D) only
4. D(A), (B), (C) and (E) only
Answer: (D) (A), (B), (C) and (E) only
Explanation
Section 3(4) of the Competition Act 2002 explicitly enumerates vertical agreements that violate competition law if they cause an appreciable adverse effect on competition.

Exclusive distribution agreement (A) — explicitly covered under Section 3(4)(c).

Resale price maintenance (B) — explicitly covered under Section 3(4)(e).

Exclusive supply agreement (C) — explicitly covered under Section 3(4)(b).

Tie-in agreement (E) — explicitly covered under Section 3(4)(a).

Non-compete agreement (D) — not categorized as a per se prohibited vertical anti-competitive agreement under Section 3(4).
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Question 73

Match List I with List II:

List I - Personality Factor	List II - Bipolar Dimension
(A) Warmth	(I) Imaginative vs practical
(B) Abstractedness	(II) Controlled vs casual
(C) Openness to change	(III) Outgoing vs reserved
(D) Perfectionism	(IV) Experimental vs conservative

A(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
B(A) - (III), (B) - (I), (C) - (IV), (D) - (II)
C(A) - (I), (B) - (IV), (C) - (III), (D) - (II)
D(A) - (III), (B) - (II), (C) - (IV), (D) - (I)

Answer: (B) (A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Explanation

Raymond Cattell's 16 Personality Factor (16PF) inventory classifies primary personality traits along standardized bipolar behavioral continuums.

A-III, B-I, C-IV, D-II

Warmth (A) — Factor A, defined by Outgoing vs reserved (III).
Abstractedness (B) — Factor M, defined by Imaginative vs practical (I).
Openness to change (C) — Factor Q1, defined by Experimental vs conservative (IV).
Perfectionism (D) — Factor Q3, defined by Controlled vs casual (II).

Question 74
Which one of the following is not valid as per the Limited Liability Partnership Act, 2008?
1. ALLP shall maintain its books of accounts on double entry system and on cash or accrual basis.
2. BLLP shall prepare a Statement of Account and Solvency for each financial year.
3. CEvery LLP shall file an annual return with the Registrar of Companies.
4. DLLP is a not separate legal entity independent of its partners.
Answer: (D) LLP is a not separate legal entity independent of its partners.
Explanation
The Limited Liability Partnership Act 2008 establishes LLPs as autonomous legal entities separate from their constituent partners.

A. Maintenance of accounts — valid under Section 34(1), allowing cash or accrual accounting on a double-entry basis.

B. Statement of Account and Solvency — valid under Section 34(2), requiring annual statutory filing in Form 8.

C. Annual return filing — valid under Section 35, requiring an annual return filed with the Registrar in Form 11.

D. Not a separate legal entity — invalid. Section 3(1) explicitly establishes that an LLP is a body corporate and a distinct legal entity independent of its partners.
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Question 75
Which are the major factors that lead to capital rationing?

A. Imperfection of capital market
B. Reluctance to broaden the equity share-base for the fear of losing control
C. Inability to manage
D. Deficiencies in market information which might affect the availability of capital
E. Efficiency of Capital Market

Choose the correct answer from the options given below:
1. A(A), (B), (D) only
2. B(C), (D), (E) only
3. C(A), (B), (C), (E) only
4. D(A), (B), (C), (D) only
Answer: (D) (A), (B), (C), (D) only
Explanation
Capital rationing occurs when a firm faces budget constraints preventing it from funding all profitable, positive-NPV capital expenditure projects.

Capital market imperfections (A) — external factor restricting external debt and equity availability.

Reluctance to dilute control (B) — internal factor where founders refuse to issue new voting shares.

Inability to manage (C) — internal organizational bottleneck where administrative capacity cannot oversee rapid physical expansion.

Market information deficiencies (D) — external friction where information asymmetry leads investors to ration capital.

Efficiency of Capital Market (E) — invalid. An efficient capital market freely provides capital at equilibrium market rates, preventing capital rationing.
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Question 76

Match List I with List II:

List I - Income Tax Disposition	List II - Particular/Section
(A) Donation to National Defence Fund	(I) Section 140(A)
(B) Hedging of Tax	(II) Tax Management
(C) Compliance with Legal Formalities	(III) Tax Avoidance
(D) Permanent Account Number (PAN)	(IV) 100% Deduction

A(A) - (III), (B) - (II), (C) - (I), (D) - (IV)
B(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
C(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
D(A) - (I), (B) - (IV), (C) - (II), (D) - (III)

Answer: (B) (A) - (IV), (B) - (III), (C) - (II), (D) - (I)

Explanation

Income tax compliance encompasses statutory deductions, procedural filings, and lawful tax optimization methods.

A-IV, B-III, C-II, D-I

Donation to National Defence Fund (A) — Qualifies for 100% deduction (IV) without any qualifying limit under Section 80G.
Hedging of Tax (B) — Represents lawful Tax Avoidance (III) by arranging affairs within legal boundaries to minimize tax liability.
Compliance with Legal Formalities (C) — Core objective of Tax Management (II), ensuring timely compliance with procedural requirements.
Permanent Account Number / Self Assessment (D) — Governed under statutory verification frameworks like Section 140(A) (I).

Question 77
Why do Central banks intervene to affect exchange rates?

A. To influence domestic production
B. To influence trade flows
C. To influence domestic interest rates
D. To inject liquidity in domestic markets
E. To smoothen fluctuations in exchange rates

Choose the most appropriate answer from the options given below:
1. A(A), (B) and (C) only
2. B(C), (D) and (E) only
3. C(B), (C) and (D) only
4. D(A), (B) and (E) only
Answer: (D) (A), (B) and (E) only
Explanation
Central banks execute foreign exchange market interventions to stabilize external value and support macroeconomic targets.

Influence domestic production (A) — Currency valuation directly affects competitiveness of domestic import-competing and export manufacturing.

Influence trade flows (B) — Interventions adjust exchange rates to correct balance of payments disequilibria and export competitiveness.

Smoothen fluctuations in exchange rates (E) — Central banks intervene against volatile currency market speculation to curb disorderly movements.

Domestic interest rates (C) and liquidity (D) — These are managed via conventional domestic monetary tools like repo auctions and open market operations rather than primary motives for currency intervention.
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Question 78
If the information sought has been supplied by third party or is treated as confidential by that third party, the third party must give a representation before the PIO in reply to the notice issued to it within how many days from the date of receipt of such notice?
1. A5 days
2. B15 days
3. C10 days
4. D7 days
Answer: (C) 10 days
Explanation
Section 11 of the Right to Information Act 2005 establishes procedures for handling third-party information requests.

A. 5 days — wrong. The Public Information Officer must issue notice to the third party within 5 days of receiving the RTI request.

B. 15 days — wrong. Third-party statutory reply window is shorter than 15 days.

C. 10 days — correct. Under Section 11(2), the third party is given exactly 10 days from the date of receipt of notice to make formal representation against disclosure.

D. 7 days — wrong. There is no 7-day compliance window in Section 11.
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Question 79
Which of the following factors Favour product standardization in the international markets?

A. High cost of adaptation
B. Variations in conditions of use
C. Country of origin effect
D. Economies in R & D
E. Differences in technical standards

Choose the most appropriate answer from the options given below:
1. A(A) and (E) only
2. B(A), (C) and (D) only
3. C(A), (B), (C), and (D) only
4. D(C) and (D) only
Answer: (B) (A), (C) and (D) only
Explanation
In global product strategy, international firms weigh product standardization benefits against local adaptation requirements.

High cost of adaptation (A) — favors standardization by making bespoke product customization economically prohibitive.

Country of origin effect (C) — favors standardization because positive foreign perceptions encourage retaining original product specifications.

Economies in R&D (D) — favors standardization by spreading centralized design and engineering overhead across global volume.

Variations in conditions of use (B) and Technical standards (E) — these factors compel local adaptation rather than standardization.
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Question 80
Banker sale of a mortgage portfolio by setting up a mortgage pass-through securities is an example of:
1. ACredit enhancement
2. BUnbundling
3. CDerivatives
4. DSecuritization
Answer: (D) Securitization
Explanation
Financial asset transformation processes convert illiquid balance sheet loans into marketable capital market securities.

A. Credit enhancement — wrong. A technique used within securitization (such as overcollateralization or guarantees) to improve credit ratings.

B. Unbundling — wrong. Separating components of an integrated financial service or contract.

C. Derivatives — wrong. Financial contracts deriving value from underlying assets rather than pooled cash flows.

D. Securitization — correct. Pooling illiquid residential or commercial mortgages and issuing tradeable pass-through securities to institutional investors.
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Question 81

Match List I with List II:

List I - Nature of goods	List II - Income Elasticity (Ei) of demand
(A) Normal goods	(I) Ei is greater than one
(B) Inferior goods	(II) Ei is greater than zero
(C) Luxury goods	(III) Ei is between zero and one
(D) Necessities	(IV) Ei is less than zero

A(A) - (II), (B) - (IV), (C) - (I), (D) - (III)
B(A) - (III), (B) - (I), (C) - (IV), (D) - (II)
C(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
D(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

Answer: (A) (A) - (II), (B) - (IV), (C) - (I), (D) - (III)

Explanation

Income elasticity of demand (Ei) categorizes goods by responsiveness of quantity demanded to changes in consumer income.

A-II, B-IV, C-I, D-III

Normal goods (A) — Income elasticity is positive (Ei > 0) (II), as demand rises with income.
Inferior goods (B) — Income elasticity is negative (Ei < 0) (IV), as consumers substitute toward superior goods.
Luxury goods (C) — Income elasticity is highly responsive and greater than unity (Ei > 1) (I).
Necessities (D) — Income elasticity is inelastic but positive (0 < Ei < 1) (III), as consumption increases less than proportionately.

Question 82
Which one of the following is not an assumption of a simple linear regression model?
1. AThe set of expected values of the dependent variable y for given values of independent variable x, are normally distributed.
2. BThe standard deviation and variance of expected values of the dependent variable about the regression line are constant for all values of the independent variable x for the set of observations in a sample.
3. CThe dependent variable y is a continuous random variable.
4. DThe errors in the value of y are identical in successive observations.
Answer: (D) The errors in the value of y are identical in successive observations.
Explanation
Classical Ordinary Least Squares (OLS) regression relies on standard Gauss-Markov and normality assumptions.

A. Normality of conditional distribution — valid OLS assumption.

B. Homoscedasticity — valid OLS assumption requiring constant error variance across all values of x.

C. Continuous dependent variable — valid assumption for linear regression modeling.

D. Identical successive errors — invalid. OLS explicitly assumes that error terms are mutually independent and uncorrelated, with zero serial autocorrelation.
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Question 83
Tax holiday under the Income Tax Act 1961 has been used in the context of which one of the following?
1. ASection 80 IA
2. BSection 80 D
3. CSection 80 CCC
4. DSection 10(5)
Answer: (A) Section 80 IA
Explanation
Statutory tax holiday provisions in the Income Tax Act grant profit-linked deductions to encourage capital investment in designated strategic sectors.

A. Section 80-IA — correct. Provides a 100% deduction of profits derived by industrial undertakings engaged in infrastructure, power generation, and telecommunication networks, known as a tax holiday.

B. Section 80D — wrong. Deduction for medical insurance premia paid by individuals.

C. Section 80CCC — wrong. Deduction for individual contributions to approved annuity pension funds.

D. Section 10(5) — wrong. Income exemption for individual Leave Travel Concession assistance.
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Question 84
Consider the two statements: One is labelled as Assertion A and the other is labelled as Reason R:

Assertion (A): Substitution effect is usually much larger than the income effect.
Reason (R): Consumer usually spends only a small portion of her/his income on any one commodity.

In light of these statements, choose the correct answer from the options:
1. ABoth (A) and (R) are true and (R) is the correct explanation of (A)
2. BBoth (A) and (R) are true but (R) is NOT the correct explanation of (A)
3. C(A) is true but (R) is false
4. D(A) is false but (R) is true
Answer: (A) Both (A) and (R) are true and (R) is the correct explanation of (A)
Explanation
Slutsky demand decomposition divides the total price effect into substitution and income effects.

Assertion (A) is true — When the price of a standard good falls, the consumer readily substitutes away from other goods, generating a substantial substitution effect.

Reason (R) is true and explains (A) — Because individual household budget expenditure on any single commodity is generally a small fraction of total income, price adjustments cause negligible changes in real income, making the income effect minor relative to substitution.
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Question 85
Which one of the following tools is not used for forecasting personnel needs (Labour Demand) by an organization?
1. ATrend Analysis
2. BMarkov Analysis
3. CRatio Analysis
4. DScatter Plot
Answer: (B) Markov Analysis
Explanation
Human resource planning distinguishes techniques for forecasting labor demand from methods estimating internal labor supply.

A. Trend Analysis — demand forecasting tool studying past employment levels over time.

B. Markov Analysis — correct. A probabilistic supply forecasting tool that tracks employee transitions across job levels to project internal personnel availability.

C. Ratio Analysis — demand forecasting technique projecting staffing needs based on business ratios.

D. Scatter Plot — graphical demand forecasting method identifying relationships between business volume and employee headcount.
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Question 86
Who among the following are identified as the Key managerial personnel in the Indian Companies Act, 2013?

A. Chief Executive Officer
B. Whole Time Director
C. Company Secretary
D. Chief Risk Officer
E. Manager

Choose the most appropriate answer from the options given below:
1. A(A), (B) and (D) only
2. B(A) and (B) only
3. C(A), (B), (C) and (D) only
4. D(A), (B), (C) and (E) only
Answer: (D) (A), (B), (C) and (E) only
Explanation
Section 2(51) of the Companies Act 2013 defines Key Managerial Personnel (KMP) in relation to a company.

Statutory KMPs under Section 2(51):

Chief Executive Officer or Managing Director or Manager (A, E)

Company Secretary (C)

Whole-time Director (B)

Chief Financial Officer

Chief Risk Officer (D) is an executive role, not a statutory officer enumerated under Section 2(51), making (A), (B), (C), and (E) the correct statutory combination.
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Question 87
In order to maintain its market share, a market follower can employ:
1. ACounterfeiter strategy
2. BSpecialization strategy
3. CCounter offensive strategy
4. DPreemptive strategy
Answer: (A) Counterfeiter strategy
Explanation
In competitive marketing strategy, Philip Kotler categorizes market follower strategies based on imitation and adaptation approaches.

A. Counterfeiter strategy — accepted answer in the examination key. Duplicates the leader's product and packaging to retain market volume.

B. Specialization strategy — characteristic niche marketing strategy rather than a standard follower posture.

C. Counter offensive strategy — defense strategy employed by market leaders responding to frontal assaults.

D. Preemptive strategy — aggressive defense strategy used by market leaders before rivals attack.
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Question 88
Under Indian Income Tax Act, in order to claim deduction of interest on home loan for house property, which of the following things need to be taken care of?

A. The home loan must be used for the purchase/construction of the house property
B. The loan must be taken on or after 1st April, 2019
C. The amount of loan must be used within 10 days from the date of loan taken
D. The purchase or construction must be completed within 5 years from the end of Financial Year in which the loan was taken
E. The rate of interest on loan cannot exceed 22%

Choose the most appropriate answer from the options given below:
1. A(A), (B), (D) only
2. B(A), (C), (D), (E) only
3. C(B), (C), (D), (E) only
4. D(A) and (D) only
Answer: (D) (A) and (D) only
Explanation
Section 24(b) of the Income Tax Act prescribes statutory conditions to claim the enhanced Rs 2,00,000 deduction on self-occupied house property home loans.

Loan utilized for acquisition or construction (A) — mandatory condition under Section 24(b).

Completion within 5 years (D) — mandatory condition requiring construction completion within 5 years from the end of the financial year of borrowing.

Conditions B, C, and E — spurious clauses. The basic Section 24(b) deduction is not restricted to post-2019 loans, has no 10-day drawdown rule, and specifies no 22% interest cap.
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Question 89
What will be the sequence of steps involved in 'Net Benefit Model of Human Resource Accounting'?

A. The gross value of services to be rendered in future by the employee in their individual as well as their collective capacity is determined
B. The excess of the value of future human resources over the value of future payments is ascertained
C. The present value of the net benefit is determined by applying a pre-determined discount rate
D. The value of future payments to the employees is determined
E. The amount calculated under 'C' will be the value of human resources to the organisation

Choose the correct sequence from the options given below:
1. A(A), (D), (B), (C), (E)
2. B(A), (B), (C), (D), (E)
3. C(A), (C), (D), (B), (E)
4. D(B), (A), (C), (D), (E)
Answer: (A) (A), (D), (B), (C), (E)
Explanation
Morse's Net Benefit Model of Human Resource Accounting measures human asset value by discounting net employee service benefits.

(A) -> (D) -> (B) -> (C) -> (E)

Gross value of future services (A) — First, the gross economic value of services to be rendered by employees is estimated.

Value of future payments (D) — Second, expected future wage, benefit, and overhead compensation outlays are determined.

Ascertain excess net benefit (B) — Third, the net benefit is calculated by deducting future employee payments from gross service values.

Discount present value (C) — Fourth, a predetermined discount rate is applied to discount future net benefit cash flows.

Capitalized human resource value (E) — Finally, the resulting present value is recognized as the economic value of human resources to the enterprise.
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Question 90
Which of the following are the main platforms for social media?

A. Search Engines
B. Online communities and forums
C. Blogs
D. Social Networks
E. Web 1.0

Choose the correct answer from the options given below:
1. A(B), (C) and (D) only
2. B(B) and (D) only
3. C(B), (C), (D) and (E) only
4. D(A), (B), (C) and (D) only
Answer: (A) (B), (C) and (D) only
Explanation
Social media platforms are collaborative digital channels built upon Web 2.0 user-generated content and social interaction.

Online communities and forums (B) — discussion boards and specialized interest groups fostering community dialogue.

Blogs (C) — web logs enabling publication, reader commentary, and social feedback.

Social Networks (D) — relationship-based platforms connecting individuals and shared affinity groups.

Search Engines (A) and Web 1.0 (E) — search engines are retrieval indexing directories, and Web 1.0 was a static broadcast medium lacking social reciprocity.
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Question 91
Which one of the following is done by the Digital Currency Regulatory Framework?
GOI has reaffirmed its intent in amendments to the Finance Bill to use tax as a deterrent to speculation in virtual digital assets. The amendments disallow losses on the sale of one crypto asset to be set off against gains on another. No deduction is permitted for any expenditure other than the cost of acquisition for computation of income from sale of cryptos and non-fungible tokens (NFTs).

Every transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether they are a capital asset or not. Only the proposed 1% rate of tax deducted at source will apply to transactions in digital assets. Penalties have been imposed for taxpayers who have claimed a deduction of surcharge and cess from their taxable income, but have not, on their own accord, paid the tax and interest on the deduction they have claimed.

The inability to set off losses will skew the risk-reward profile of digital assets, and crypto exchanges fear it could push trading activity beyond Indian jurisdiction to decentralized exchanges and foreign platforms accessed through virtual private networks. The industry feels not allowing tax deduction on the costs of mining cryptos will eventually force blockchain companies and the talent they hire to operate outside the country.

To the extent that the proposed tax regime drives users from exchanges compliant with know-your-customer (KYC) rules towards underground peer-to-peer platforms, deterrence would be diluted.

Nirmala Sitharaman, in her statement while moving the amendments, has clarified the tax on private digital assets does not indicate GoI's stance on their legitimacy. The regulatory position could become clearer once the Reserve Bank of India (RBI) is ready with its digital currency. Fiat digital currencies, which make transactions and monetary transmission more efficient, are inevitable as the use of cash plateaus in several countries. Speculation, and a reflex to curb it, must not draw attention away from the inherent superiority of digital currencies. This is the future of money.
1. AEventually force blockchain companies to operate from outside.
2. BAttract users towards exchanges which are compliant with know-your-customer rules.
3. CMotivate the operators to operate outside the country.
4. DPromote underground peer to peer crypto platforms.
Answer: (A) Eventually force blockchain companies to operate from outside.
Explanation
Based on the passage, disallowing tax deductions on crypto mining costs creates adverse domestic business conditions.

A. Eventually force blockchain companies to operate from outside — correct. The passage explicitly states: "The industry feels not allowing tax deduction on the costs of mining cryptos will eventually force blockchain companies and the talent they hire to operate outside the country."

B. Attract users towards compliant exchanges — wrong. The passage notes the tax regime risks driving users away from KYC-compliant platforms.

C. Motivate operators to operate outside — imprecise paraphrase of the specific industry impact on blockchain companies.

D. Promote underground platforms — a feared consequence of regulatory overreach rather than an intended framework action.
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Question 92
Digital currency regulations will result into which one of the following?
GOI has reaffirmed its intent in amendments to the Finance Bill to use tax as a deterrent to speculation in virtual digital assets. The amendments disallow losses on the sale of one crypto asset to be set off against gains on another. No deduction is permitted for any expenditure other than the cost of acquisition for computation of income from sale of cryptos and non-fungible tokens (NFTs).

Every transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether they are a capital asset or not. Only the proposed 1% rate of tax deducted at source will apply to transactions in digital assets. Penalties have been imposed for taxpayers who have claimed a deduction of surcharge and cess from their taxable income, but have not, on their own accord, paid the tax and interest on the deduction they have claimed.

The inability to set off losses will skew the risk-reward profile of digital assets, and crypto exchanges fear it could push trading activity beyond Indian jurisdiction to decentralized exchanges and foreign platforms accessed through virtual private networks. The industry feels not allowing tax deduction on the costs of mining cryptos will eventually force blockchain companies and the talent they hire to operate outside the country.

To the extent that the proposed tax regime drives users from exchanges compliant with know-your-customer (KYC) rules towards underground peer-to-peer platforms, deterrence would be diluted.

Nirmala Sitharaman, in her statement while moving the amendments, has clarified the tax on private digital assets does not indicate GoI's stance on their legitimacy. The regulatory position could become clearer once the Reserve Bank of India (RBI) is ready with its digital currency. Fiat digital currencies, which make transactions and monetary transmission more efficient, are inevitable as the use of cash plateaus in several countries. Speculation, and a reflex to curb it, must not draw attention away from the inherent superiority of digital currencies. This is the future of money.
1. AScare digital currencies away.
2. BPermit deduction of any expenditure other than the cost of acquisition for computation of income.
3. CImpose penalties for tax payers who have claimed a deduction of surcharge and cess from their taxable income.
4. DAttract 30% tax on every transfer of crypto asset.
Answer: (D) Attract 30% tax on every transfer of crypto asset.
Explanation
Based on the passage, the proposed taxation regime establishes uniform transfer tax rates.

A. Scare digital currencies away — wrong. The text describes displacement of speculative trading rather than extinguishing currencies.

B. Permit deduction of expenditure — wrong. The text explicitly states that no deduction other than acquisition cost is permitted.

C. Impose penalties for surcharge/cess deduction — wrong. This penalty clause applies to past general taxpayers rather than arising from digital asset regulations.

D. Attract 30% tax on every transfer of crypto asset — correct. The passage states: "Every transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether they are a capital asset or not."
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Question 93
Consider the two statements:

Statement I: Non-fungible tokens cannot be splitted.
Statement II: Non-fungible tokens can be replicated at convenience.

In light of these statements, choose the most appropriate answer from the options:
GOI has reaffirmed its intent in amendments to the Finance Bill to use tax as a deterrent to speculation in virtual digital assets. The amendments disallow losses on the sale of one crypto asset to be set off against gains on another. No deduction is permitted for any expenditure other than the cost of acquisition for computation of income from sale of cryptos and non-fungible tokens (NFTs).

Every transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether they are a capital asset or not. Only the proposed 1% rate of tax deducted at source will apply to transactions in digital assets. Penalties have been imposed for taxpayers who have claimed a deduction of surcharge and cess from their taxable income, but have not, on their own accord, paid the tax and interest on the deduction they have claimed.

The inability to set off losses will skew the risk-reward profile of digital assets, and crypto exchanges fear it could push trading activity beyond Indian jurisdiction to decentralized exchanges and foreign platforms accessed through virtual private networks. The industry feels not allowing tax deduction on the costs of mining cryptos will eventually force blockchain companies and the talent they hire to operate outside the country.

To the extent that the proposed tax regime drives users from exchanges compliant with know-your-customer (KYC) rules towards underground peer-to-peer platforms, deterrence would be diluted.

Nirmala Sitharaman, in her statement while moving the amendments, has clarified the tax on private digital assets does not indicate GoI's stance on their legitimacy. The regulatory position could become clearer once the Reserve Bank of India (RBI) is ready with its digital currency. Fiat digital currencies, which make transactions and monetary transmission more efficient, are inevitable as the use of cash plateaus in several countries. Speculation, and a reflex to curb it, must not draw attention away from the inherent superiority of digital currencies. This is the future of money.
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (C) Statement I is correct but Statement II is incorrect
Explanation
Non-Fungible Tokens (NFTs) possess distinct technological and cryptographic properties on distributed ledgers.

Statement I is correct — NFTs represent indivisible digital assets that cannot be split into fractional units like fungible cryptocurrencies.

Statement II is incorrect — Each NFT contains unique smart contract metadata establishing verifiable provenance, making cryptographic replication impossible.
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Question 94
Government of India's intent towards virtual digital assets is which one of the following?
GOI has reaffirmed its intent in amendments to the Finance Bill to use tax as a deterrent to speculation in virtual digital assets. The amendments disallow losses on the sale of one crypto asset to be set off against gains on another. No deduction is permitted for any expenditure other than the cost of acquisition for computation of income from sale of cryptos and non-fungible tokens (NFTs).

Every transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether they are a capital asset or not. Only the proposed 1% rate of tax deducted at source will apply to transactions in digital assets. Penalties have been imposed for taxpayers who have claimed a deduction of surcharge and cess from their taxable income, but have not, on their own accord, paid the tax and interest on the deduction they have claimed.

The inability to set off losses will skew the risk-reward profile of digital assets, and crypto exchanges fear it could push trading activity beyond Indian jurisdiction to decentralized exchanges and foreign platforms accessed through virtual private networks. The industry feels not allowing tax deduction on the costs of mining cryptos will eventually force blockchain companies and the talent they hire to operate outside the country.

To the extent that the proposed tax regime drives users from exchanges compliant with know-your-customer (KYC) rules towards underground peer-to-peer platforms, deterrence would be diluted.

Nirmala Sitharaman, in her statement while moving the amendments, has clarified the tax on private digital assets does not indicate GoI's stance on their legitimacy. The regulatory position could become clearer once the Reserve Bank of India (RBI) is ready with its digital currency. Fiat digital currencies, which make transactions and monetary transmission more efficient, are inevitable as the use of cash plateaus in several countries. Speculation, and a reflex to curb it, must not draw attention away from the inherent superiority of digital currencies. This is the future of money.
1. ATo promote speculation
2. BTo be silent on speculation
3. CTo discourage speculation
4. DTo stop speculation
Answer: (C) To discourage speculation
Explanation
Based on the opening paragraph of the passage, the Government of India designed the tax provisions as a deterrent against excessive speculative activity.

A. Promote speculation — opposite of stated intent.

B. Silent on speculation — wrong. The Government explicitly articulated its position through amendments to the Finance Bill.

C. To discourage speculation — correct. The passage affirms the intent "to use tax as a deterrent to speculation in virtual digital assets."

D. To stop speculation — wrong. Deterrence implies curbing and discouraging speculation rather than an outright prohibition.
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Question 95
Consider the two statements: One is labelled as Assertion A and the other is labelled as Reason R:

Assertion (A): Crypto exchanges fear that the new amendments could push trading activity beyond Indian jurisdiction to decentralized exchanges.
Reason (R): The new amendments disallow losses on the sale of new crypto asset to be set off against gains on another.

In light of these statements, choose the most appropriate answer from the options:
GOI has reaffirmed its intent in amendments to the Finance Bill to use tax as a deterrent to speculation in virtual digital assets. The amendments disallow losses on the sale of one crypto asset to be set off against gains on another. No deduction is permitted for any expenditure other than the cost of acquisition for computation of income from sale of cryptos and non-fungible tokens (NFTs).

Every transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether they are a capital asset or not. Only the proposed 1% rate of tax deducted at source will apply to transactions in digital assets. Penalties have been imposed for taxpayers who have claimed a deduction of surcharge and cess from their taxable income, but have not, on their own accord, paid the tax and interest on the deduction they have claimed.

The inability to set off losses will skew the risk-reward profile of digital assets, and crypto exchanges fear it could push trading activity beyond Indian jurisdiction to decentralized exchanges and foreign platforms accessed through virtual private networks. The industry feels not allowing tax deduction on the costs of mining cryptos will eventually force blockchain companies and the talent they hire to operate outside the country.

To the extent that the proposed tax regime drives users from exchanges compliant with know-your-customer (KYC) rules towards underground peer-to-peer platforms, deterrence would be diluted.

Nirmala Sitharaman, in her statement while moving the amendments, has clarified the tax on private digital assets does not indicate GoI's stance on their legitimacy. The regulatory position could become clearer once the Reserve Bank of India (RBI) is ready with its digital currency. Fiat digital currencies, which make transactions and monetary transmission more efficient, are inevitable as the use of cash plateaus in several countries. Speculation, and a reflex to curb it, must not draw attention away from the inherent superiority of digital currencies. This is the future of money.
1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
2. BBoth (A) and (R) are correct but (R) is NOT the correct explanation of (A)
3. C(A) is correct but (R) is not correct
4. D(A) is not correct but (R) is correct
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Explanation
Based on the passage, the prohibition on setting off investment losses drives trading out of domestic regulated exchanges.

Assertion (A) is correct — Domestic exchanges anticipate trading migration toward decentralized and offshore platforms.

Reason (R) is correct and explains (A) — The passage explicitly connects the inability to set off losses with the altered risk-reward dynamic that pushes transactions into decentralized alternatives, directly validating the causal relationship.
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Question 96
What is the most ineffective in the organisation?
Naik, AGM Materials, is fuming and fretting. He bumped into Kamath, GM (Materials), threw the resignation letter on his table, shouted and walked out of the room swiftly.

Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Naik's bile and why he put in his papers, barely four months after he took up his present assignment.

The year was 2021 when Naik quit the prestigious SAIL plant at Vishakapatnam. As a manager materials, Naik enjoyed powers - he could even place an order for materials worth Rs. 25 lakh. He needed nobody's prior approval.

Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multi-product and multiplant-conglomerate owned by a prestigious business house in India.

Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith.

When he joined the eucalyptus pulp making company, little did Naik realise that he needed prior approval to place an order for materials worth Rs. 12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order, materials arrived, were received, accepted and used up in the plant.

Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endorsed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing the order.

Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik was curtly told that he should have known company rules before venturing. Naik decided to quit.
1. ARecruitment policy
2. BSelection policy
3. CInduction program
4. DPromotion policy
Answer: (C) Induction program
Explanation
Based on the case study, the conflict occurred because Mr. Naik was never briefed on organizational rules, procurement authority limits, or financial endorsement procedures.

A. Recruitment policy — wrong. The firm successfully attracted a high-caliber executive from a major public sector corporation.

B. Selection policy — wrong. The selection process secured an experienced materials manager.

C. Induction program — correct. A robust onboarding induction program would have informed the incoming executive of specific spending limits, preventing unauthorized purchase orders.

D. Promotion policy — wrong. No promotion issues are raised in the narrative.
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Question 97
The job of AGM materials is to
Naik, AGM Materials, is fuming and fretting. He bumped into Kamath, GM (Materials), threw the resignation letter on his table, shouted and walked out of the room swiftly.

Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Naik's bile and why he put in his papers, barely four months after he took up his present assignment.

The year was 2021 when Naik quit the prestigious SAIL plant at Vishakapatnam. As a manager materials, Naik enjoyed powers - he could even place an order for materials worth Rs. 25 lakh. He needed nobody's prior approval.

Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multi-product and multiplant-conglomerate owned by a prestigious business house in India.

Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith.

When he joined the eucalyptus pulp making company, little did Naik realise that he needed prior approval to place an order for materials worth Rs. 12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order, materials arrived, were received, accepted and used up in the plant.

Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endorsed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing the order.

Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik was curtly told that he should have known company rules before venturing. Naik decided to quit.
1. APlace order
2. BReceive material
3. CInspect material
4. DIssue material
Answer: (A) Place order
Explanation
In materials management organizational hierarchy, executive managers focus on procurement contracts rather than warehouse physical handling.

A. Place order — correct. The case narrative illustrates that the Assistant General Manager's managerial role centers on procurement decisions and issuing purchase orders.

B. Receive material — wrong. Receiving is handled by receiving dock staff.

C. Inspect material — wrong. Inspection is the responsibility of quality assurance personnel.

D. Issue material — wrong. Storekeeping staff handle physical store issues.
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Question 98
Consider the two statements:

Statement I: Mr. Naik's presumption that he could place an order for materials worth Rs.25 lakh was right.
Statement II: Perks and reputation of the conglomerate were the reasons for Mr. Naik joining the eucalyptus pulp making company.

In light of these statements, choose the most appropriate answer from the options:
Naik, AGM Materials, is fuming and fretting. He bumped into Kamath, GM (Materials), threw the resignation letter on his table, shouted and walked out of the room swiftly.

Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Naik's bile and why he put in his papers, barely four months after he took up his present assignment.

The year was 2021 when Naik quit the prestigious SAIL plant at Vishakapatnam. As a manager materials, Naik enjoyed powers - he could even place an order for materials worth Rs. 25 lakh. He needed nobody's prior approval.

Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multi-product and multiplant-conglomerate owned by a prestigious business house in India.

Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith.

When he joined the eucalyptus pulp making company, little did Naik realise that he needed prior approval to place an order for materials worth Rs. 12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order, materials arrived, were received, accepted and used up in the plant.

Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endorsed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing the order.

Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik was curtly told that he should have known company rules before venturing. Naik decided to quit.
1. ABoth Statement I and Statement II are correct
2. BBoth Statement I and Statement II are incorrect
3. CStatement I is correct but Statement II is incorrect
4. DStatement I is incorrect but Statement II is correct
Answer: (D) Statement I is incorrect but Statement II is correct
Explanation
Evaluating the case narrative confirms executive authority limits and career motivations.

Statement I is incorrect — Mr. Naik lacked authority to place orders for Rs 12 lakh without GM Kamath's approval, rendering his presumption completely mistaken.

Statement II is correct — The passage affirms: "Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith."
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Question 99
As per the passage, who is at fault?
Naik, AGM Materials, is fuming and fretting. He bumped into Kamath, GM (Materials), threw the resignation letter on his table, shouted and walked out of the room swiftly.

Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Naik's bile and why he put in his papers, barely four months after he took up his present assignment.

The year was 2021 when Naik quit the prestigious SAIL plant at Vishakapatnam. As a manager materials, Naik enjoyed powers - he could even place an order for materials worth Rs. 25 lakh. He needed nobody's prior approval.

Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multi-product and multiplant-conglomerate owned by a prestigious business house in India.

Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith.

When he joined the eucalyptus pulp making company, little did Naik realise that he needed prior approval to place an order for materials worth Rs. 12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order, materials arrived, were received, accepted and used up in the plant.

Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endorsed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing the order.

Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik was curtly told that he should have known company rules before venturing. Naik decided to quit.
1. AMr. Naik
2. BMr. Kamath
3. CBoth Mr. Naik and Mr. Kamath
4. DHuman Resource Department
Answer: (D) Human Resource Department
Explanation
In organizational analysis, procedural breakdown stems from institutional onboarding failure.

A, B, and C — while individual communication was abrupt, their actions reflected adherence to or ignorance of uncommunicated rules.

D. Human Resource Department — correct. The HR department holds systemic institutional responsibility for conducting executive orientation and ensuring new managers understand internal delegations before commencing duties.
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Question 100
Consider the two statements: One is labelled as Assertion A and the other is labelled as Reason R:

Assertion (A): It was right on the part of accounts department to withheld payment.
Reason (R): Mr. Naik had the authority to place the order for materials worth Rs.25 lakh.

In light of these statements, choose the correct answer from the options:
Naik, AGM Materials, is fuming and fretting. He bumped into Kamath, GM (Materials), threw the resignation letter on his table, shouted and walked out of the room swiftly.

Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Naik's bile and why he put in his papers, barely four months after he took up his present assignment.

The year was 2021 when Naik quit the prestigious SAIL plant at Vishakapatnam. As a manager materials, Naik enjoyed powers - he could even place an order for materials worth Rs. 25 lakh. He needed nobody's prior approval.

Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multi-product and multiplant-conglomerate owned by a prestigious business house in India.

Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith.

When he joined the eucalyptus pulp making company, little did Naik realise that he needed prior approval to place an order for materials worth Rs. 12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order, materials arrived, were received, accepted and used up in the plant.

Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endorsed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing the order.

Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik was curtly told that he should have known company rules before venturing. Naik decided to quit.
1. ABoth (A) and (R) are true and (R) is the correct explanation of (A)
2. BBoth (A) and (R) are true but (R) is NOT the correct explanation of (A)
3. C(A) is true but (R) is false
4. D(A) is false but (R) is true
Answer: (C) (A) is true but (R) is false
Explanation
Evaluating accounting internal control procedures against executive purchasing authority clarifies the dispute.

Assertion (A) is true — The accounts department acted properly by withholding payment because company rules required GM Kamath's formal endorsement.

Reason (R) is false — Mr. Naik enjoyed Rs 25 lakh authority in his former SAIL employment, not in the eucalyptus pulp conglomerate.
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Attempt Paper 2 — Commerce · Shift 2 as a timed test

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Frequently asked questions

How many questions were in the UGC NET Commerce September 2022 exam?

Paper 1 had 100 questions and Paper 2 (Commerce) had 200 questions, for 300 in total across 3 hours.

Is there negative marking in UGC NET?

No. Each correct answer earns 2 marks and there is no penalty for a wrong answer, so leaving a question blank is never better than attempting it.

Are the September 2022 answers on this page official?

Answers follow the official NTA answer key for this session. If you spot a discrepancy, use the report option inside the practice test and we will review it.

Can I attempt the September 2022 paper as a timed mock test?

Yes. Every paper on this page has an "Attempt this paper" button that opens the same questions in the timed test interface, with instant scoring and weak-area analysis afterwards.

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More Commerce practice

All 2022 sessions All Commerce PYQs Commerce topic-wise practice Paper 1 topic-wise practice

Practice Paper 1 from other subjects

Every subject's exam sitting has its own Paper 1 (General Aptitude) set — more real PYQs to solve.

Paper 1 · English Literature sittings Paper 1 · Economics sittings Paper 1 · Computer Science & Applications sittings Paper 1 · Management sittings

Year	4AH	7AH	32AH	35AH	55AH
2015	75	144	114	102	108
2016	90	126	102	84	126
2017	96	114	75	105	135
2018	105	90	150	90	75
2019	90	75	135	75	90
2020	105	60	165	45	120
2021	115	85	160	100	145

List I (Concept of presentation)	List II (Characteristic)
(a) Text	(I) Order of signification
(b) Discourse	(II) Subjective invention
(c) Connotation	(III) Micro data
(d) Myth	(IV) Macro exchange

List I - Ind AS	List II - Topic
(A) Ind AS 1	(I) Income Taxes
(B) Ind AS 12	(II) Related Party Disclosures
(C) Ind AS 24	(III) Intangible Assets
(D) Ind AS 38	(IV) Presentation of Financial Statements

School	Distribution (%) of Qualified students (2020)	Distribution (%) of Qualified students (2021)
A	21%	23%
B	14%	8%
C	16%	11%
D	10%	14%
E	18%	16%
F	9%	13%
G	12%	15%

School	Distribution (%) of Qualified students (2020)	Distribution (%) of Qualified students (2021)
A	21%	23%
B	14%	8%
C	16%	11%
D	10%	14%
E	18%	16%
F	9%	13%
G	12%	15%

School	Distribution (%) of Qualified students (2020)	Distribution (%) of Qualified students (2021)
A	21%	23%
B	14%	8%
C	16%	11%
D	10%	14%
E	18%	16%
F	9%	13%
G	12%	15%

School	Distribution (%) of Qualified students (2020)	Distribution (%) of Qualified students (2021)
A	21%	23%
B	14%	8%
C	16%	11%
D	10%	14%
E	18%	16%
F	9%	13%
G	12%	15%

UGC NET Commerce September 2022 Question PaperPaper 1 & Paper 2 with Answer Key

UGC NET September 2022 at a glance

General Aptitude

Commerce

General Aptitude

Commerce

Paper 1 — General Aptitude · Shift 1

Question 1

Year-wise Sale of Batteries

Question 2

Year-wise Sale of Batteries

Question 3

Year-wise Sale of Batteries

Question 4

Year-wise Sale of Batteries

Question 5

Year-wise Sale of Batteries

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Question 21

Question 22

Question 23

Question 24

Question 25

Question 26

Question 27

Question 28

Question 29

Question 30

Question 31

Question 32

Question 33

Question 34

Question 35

Question 36

Question 37

Question 38

Question 39

Question 40

Question 41

Question 42

Question 43

Question 44

Question 45

Question 46

Question 47

Question 48

Question 49

Question 50

Paper 2 — Commerce · Shift 1

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17