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|Commerce · June 2023

UGC NET Commerce June 2023 Question PaperPaper 1 & Paper 2 with Answer Key

The complete UGC NET June 2023 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 June 2023 at a glance

Exam	UGC NET June 2023
Papers	Paper 1 (General Aptitude) and Paper 2 (Commerce)
Exam date(s)	June 13, 2023
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 June 2023 · Shift 1 · Commerce sitting

50 questions60 min100 marks

Practice Now

Paper 2

Commerce

UGC NET June 2023 · Shift 1

100 questions120 min200 marks

Practice Now

Paper 1

General Aptitude

UGC NET June 2023 · Shift 2 · Commerce sitting

50 questions60 min100 marks

Practice Now

Paper 2

Commerce

UGC NET June 2023 · 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 the average per capita Net National Income (in thousand rupees) per year?
The following table shows Net National Income (in Lac Crore) and Per capita Net National Income (in thousand) of India during the 5 year period from the year 2015-16 to 2019-20. Based on the data in the table, answer the questions that follow:

Year Net National Income (in Lac Crore rupees) Per capita Net National Income (in thousand rupees)
2015-16 122 95
2016-17 136 105
2017-18 151 115
2018-19 167 126
2019-20 177 132
1. A103.25
2. B114.6
3. C110.3
4. D108.6
Answer: (B) 114.6
Explanation
The average per capita Net National Income is obtained by summing the per capita values across all five years and dividing by 5.

Total sum = 95 + 105 + 115 + 126 + 132 = 573
Average = 573 / 5 = 114.6 thousand rupees

A. 103.25 — incorrect sum or divided by a wrong count

B. 114.6 — correct. Exactly 573 divided by 5

C. 110.3 — arithmetic miscalculation

D. 108.6 — omits the final year's growth
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Question 2
In which year the percentage (%) increase in the Net National Income over the previous year was maximum?
The following table shows Net National Income (in Lac Crore) and Per capita Net National Income (in thousand) of India during the 5 year period from the year 2015-16 to 2019-20. Based on the data in the table, answer the questions that follow:

Year Net National Income (in Lac Crore rupees) Per capita Net National Income (in thousand rupees)
2015-16 122 95
2016-17 136 105
2017-18 151 115
2018-19 167 126
2019-20 177 132
1. A2019-20
2. B2018-19
3. C2017-18
4. D2016-17
Answer: (D) 2016-17
Explanation
Annual percentage increase in Net National Income is calculated as ((Income_current - Income_previous) / Income_previous) * 100.

2016-17: (136 - 122) / 122 = 14 / 122 ≈ 11.48%

2017-18: (151 - 136) / 136 = 15 / 136 ≈ 11.03%

2018-19: (167 - 151) / 151 = 16 / 151 ≈ 10.60%

2019-20: (177 - 167) / 167 = 10 / 167 ≈ 5.99%

The highest growth rate occurred in 2016-17 at approximately 11.48%.

A. 2019-20 — lowest rate in the table at 5.99%

B. 2018-19 — 10.60%, lower than 2016-17

C. 2017-18 — 11.03%, slightly lower than 2016-17

D. 2016-17 — correct. Maximum increase at 11.48%
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Question 3
With reference to the year 2015-16, the percentage growth in the population of India by the year 2019-20 is
The following table shows Net National Income (in Lac Crore) and Per capita Net National Income (in thousand) of India during the 5 year period from the year 2015-16 to 2019-20. Based on the data in the table, answer the questions that follow:

Year Net National Income (in Lac Crore rupees) Per capita Net National Income (in thousand rupees)
2015-16 122 95
2016-17 136 105
2017-18 151 115
2018-19 167 126
2019-20 177 132
1. A~ 6.2%
2. B~ 4.4%
3. C~ 7.1%
4. D~ 3.1%
Answer: (B) ~ 4.4%
Explanation
Population is proportional to Total Net National Income divided by Per Capita Income.

Population index for 2015-16:
122 / 95 ≈ 1.2842

Population index for 2019-20:
177 / 132 ≈ 1.3409

Growth ratio = 1.3409 / 1.2842 ≈ 1.04415
Percentage growth = (1.04415 - 1) * 100 ≈ 4.415% ≈ 4.4%

A. ~ 6.2% — overestimates population expansion

B. ~ 4.4% — correct. Derived from (177 * 95) / (132 * 122) - 1 ≈ 4.4%

C. ~ 7.1% — uses mismatched base numbers

D. ~ 3.1% — underestimates growth
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Question 4
What is the percentage increase (%) in per capita Net National Income during 5 years (i.e. 2015-16 to 2019-20)?
The following table shows Net National Income (in Lac Crore) and Per capita Net National Income (in thousand) of India during the 5 year period from the year 2015-16 to 2019-20. Based on the data in the table, answer the questions that follow:

Year Net National Income (in Lac Crore rupees) Per capita Net National Income (in thousand rupees)
2015-16 122 95
2016-17 136 105
2017-18 151 115
2018-19 167 126
2019-20 177 132
1. A~ 38.94%
2. B~ 48.24%
3. C~ 30.61%
4. D~ 42.40%
Answer: (A) ~ 38.94%
Explanation
Percentage increase in per capita Net National Income over the 5-year period is calculated from the base year 2015-16 to the terminal year 2019-20.

Base per capita income (2015-16) = 95
Terminal per capita income (2019-20) = 132
Absolute increase = 132 - 95 = 37

Percentage increase = (37 / 95) * 100 ≈ 38.947% ≈ 38.94%

A. ~ 38.94% — correct. 37 / 95 * 100 ≈ 38.94%

B. ~ 48.24% — uses an erroneous denominator

C. ~ 30.61% — calculates growth against terminal year

D. ~ 42.40% — calculation error
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Question 5
Assuming that the per capita Net national Income grows beyond the year 2019-20 at the average annual rate of increase (%) of the period (2015-16 to 2019-20), what will be its value (in thousand ₹) at the end of the year 2020-21?
The following table shows Net National Income (in Lac Crore) and Per capita Net National Income (in thousand) of India during the 5 year period from the year 2015-16 to 2019-20. Based on the data in the table, answer the questions that follow:

Year Net National Income (in Lac Crore rupees) Per capita Net National Income (in thousand rupees)
2015-16 122 95
2016-17 136 105
2017-18 151 115
2018-19 167 126
2019-20 177 132
1. A135.68
2. B138.35
3. C140.17
4. D143.34
Answer: (D) 143.34
Explanation
First compute the average of the 4 annual growth rates of per capita income from 2015-16 to 2019-20.

2015-16 to 2016-17: 10 / 95 ≈ 10.526%

2016-17 to 2017-18: 10 / 105 ≈ 9.524%

2017-18 to 2018-19: 11 / 115 ≈ 9.565%

2018-19 to 2019-20: 6 / 126 ≈ 4.762%

Sum of rates = 34.377%
Average annual growth rate = 34.377% / 4 ≈ 8.594%

Projected value for 2020-21 = 132 * (1 + 0.08594) ≈ 143.344 ≈ 143.34 thousand rupees.

A. 135.68 — applies only a minor fraction of growth

B. 138.35 — applies only the final year's low rate (4.76%)

C. 140.17 — arithmetic error in rate averaging

D. 143.34 — correct. 132 * 1.08594 ≈ 143.34
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Question 6
Which of the following are not the characteristics of teacher- centered methods of teaching?

A. Students are passive learners
B. Teachers act as facilitator for learning
C. Teacher directs learning activities
D. Learning is based on collaboration between students
E. Learning is based on student interest

Choose the correct answer from the options given below:
1. AA, C & D only
2. BB & E only
3. CB, D & E only
4. DA & C only
Answer: (C) B, D & E only
Explanation
Teacher-centered methods feature direct instruction where the teacher controls the classroom and students receive information passively (statements A and C).

In contrast, learner-centered pedagogy positions the teacher as a facilitator (B), encourages peer collaboration (D), and tailors instruction to student interests (E). Therefore, B, D, and E are learner-centered traits and do not characterize teacher-centered instruction.

A. A, C & D only — A and C are primary teacher-centered traits

B. B & E only — omits collaboration (D)

C. B, D & E only — correct. Identifies all three learner-centered characteristics

D. A & C only — identifies teacher-centered features rather than non-characteristics
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Question 7
Which of the following is a tool used for creating and sharing online learning games?
1. AMentimeter
2. BPadlet
3. CKahoot
4. DZoom
Answer: (C) Kahoot
Explanation
Kahoot is a dedicated game-based learning platform that allows teachers and students to create, share, and play competitive learning quizzes, trivia, and interactive games.

A. Mentimeter — an interactive polling and audience engagement tool

B. Padlet — a digital collaborative canvas and bulletin board

C. Kahoot — correct. Renowned game-based educational platform

D. Zoom — a synchronous video conferencing tool
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Question 8
What are the various salient features of formative evaluation?

A. It provides feed back to the teachers to use teaching strategies according to the needs of the learners
B. It helps learners to actively and continuously engage in learning
C. It helps in enhancing the learning abilities of the learner
D. It contributes to the overall grading and certification of the learner
E. It 'sums-up' how much a student has learnt over a period of time

Choose the correct answer from the options given below:
1. AB, D & E only
2. BC & E only
3. CA, B & C only
4. DA & D only
Answer: (C) A, B & C only
Explanation
Formative evaluation occurs during the instructional process to identify learning gaps and guide improvement in real time (statements A, B, and C).

Statement A: Supplies diagnostic feedback to teachers to adapt instructional methods.

Statement B: Engages learners continuously through low-stakes assessments.

Statement C: Enhances learner skills and conceptual understanding.

Statements D and E describe summative evaluation, which occurs at the end of a term to assign final grades, award certificates, and sum up terminal achievement.

A. B, D & E only — includes summative attributes D and E

B. C & E only — includes summative attribute E and misses A and B

C. A, B & C only — correct. Confines the selection to process-oriented features

D. A & D only — includes certification (D)
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Question 9
Given below are two statements:

Statement I: A learner's cultural background has no impact on his/her learning experience.
Statement II: Gender is not a strong predictor of academic achievement.

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 false because cultural background strongly shapes prior schemas, communication patterns, values, and classroom participation.

Statement II is true because empirical educational research demonstrates that gender explains negligible variance in general cognitive ability and academic achievement compared to factors like socioeconomic status, school quality, motivation, and effort.

A. Both Statement I and Statement II are true — cultural background has a well-documented impact

B. Both Statement I and Statement II are false — overlooks the validity of Statement II

C. Statement I is true but Statement II is false — inverts the truth values of both statements

D. Statement I is false but Statement II is true — correct. Accurate evaluation of both educational principles
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Question 10
Match List-I with List-II.
List-I (Three Approaches of Education) List-II (Disciplinary aspects)
A. Teacher-centred I. Shared, Participatory
B. Learner-centred II. Imposed
C. Learning-centred III. Self-controlled
1. AA-III, B-II, C-I
2. BA-I, B-II, C-III
3. CA-II, B-I, C-III
4. DA-II, B-III, C-I
Answer: (D) A-II, B-III, C-I
Explanation
The disciplinary aspects corresponding to educational approaches are:

A-II, B-III, C-I

A. Teacher-centred (II) — discipline is imposed externally through teacher authority, rules, and obedience.

B. Learner-centred (III) — discipline is self-controlled through intrinsic motivation, autonomy, and individual self-regulation.

C. Learning-centred (I) — discipline is shared and participatory, co-created by teacher and students around communal learning objectives.

A. A-III, B-II, C-I — misattributes self-control to teacher-centred

B. A-I, B-II, C-III — misattributes shared discipline to teacher-centred

C. A-II, B-I, C-III — swaps learner-centred and learning-centred aspects

D. A-II, B-III, C-I — correct. Matches all three disciplinary orientations
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Question 11
Which among the following would be the ethical issues in a research study that involves participation of human subjects?

A. Lack of informed consent
B. Physical and psychological harm
C. Excessive inducements
D. Debriefing

Choose the correct answer from the options given below:
1. AA, B & C only
2. BB, C & D only
3. CA, C & D only
4. DA, B, C & D
Answer: (A) A, B & C only
Explanation
Ethical issues represent potential violations of research integrity and participant welfare.

Item A (Lack of informed consent): Violates participant autonomy.

Item B (Physical and psychological harm): Violates the core principle of non-maleficence.

Item C (Excessive inducements): Undermines voluntary consent through undue financial or material coercion.

In contrast, debriefing (D) is an essential ethical safeguard and best practice, not an ethical transgression.

A. A, B & C only — correct. Groups all three genuine ethical risks

B. B, C & D only — incorrectly treats debriefing as an ethical issue

C. A, C & D only — includes debriefing and omits physical and psychological harm

D. A, B, C & D — fails to distinguish ethical safeguards from ethical violations
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Question 12
Which aspect of the researcher may cause psychosocial effect in the participant of a study?
1. AAge
2. BRace
3. CSex
4. DAttitude
Answer: (D) Attitude
Explanation
In research methodology, experimenter attributes are divided into biosocial traits and psychosocial factors.

Biosocial and demographic traits include age, sex, and race. Psychosocial factors comprise the psychological posture and interpersonal demeanor of the researcher, including attitude, warmth, hostility, anxiety, or authoritarianism, which alter participant reactions through expectancy effects.

A. Age — a biosocial demographic variable

B. Race — a biosocial demographic variable

C. Sex — a biosocial demographic variable

D. Attitude — correct. A direct psychosocial determinant of participant response
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Question 13
Given below are two statements:

Statement I: In a ratio scale, zero point is arbitrary.
Statement II: The nominal scale allows ordering/ranking of data.

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: (B) Both Statement I and Statement II are false
Explanation
Both statements are false under Stevens' classical typology of measurement scales.

Statement I is false: A ratio scale possesses a true, absolute zero point representing total absence of the variable (e.g. height, weight, Kelvin temperature). An interval scale is the one that has an arbitrary zero point (e.g. Celsius temperature).

Statement II is false: A nominal scale classifies data into mutually exclusive qualitative categories without any quantitative rank or order. Ordinal scales are the ones that permit ordering and ranking.

A. Both Statement I and Statement II are true — conflates interval and ordinal definitions

B. Both Statement I and Statement II are false — correct. Accurately identifies both scale definitions as inverted

C. Statement I is true but Statement II is false — incorrectly validates arbitrary zero for ratio scales

D. Statement I is false but Statement II is true — incorrectly validates ranking for nominal scales
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Question 14
Given below are two statements:

Statement I: The standard deviation of a series of repeated measurements estimates the likely size of the chance error in a single measurement.
Statement II: Bias affects all the measurements the same way, pushing them in the same direction.

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
Both statements correctly state foundational principles of measurement error in experimental statistics.

Statement I is true: Chance error (random fluctuation) scatters repeated observations around the mean. The standard deviation of repeated measurements gauges the spread of these fluctuations and estimates the expected magnitude of random error in any individual single measurement.

Statement II is true: Bias represents systematic error that alters every measurement consistently in one direction (consistently too high or too low), shifting the mean away from the true value.

A. Both Statement I and Statement II are true — correct. Accurately defines chance error estimation and directional bias

B. Both Statement I and Statement II are false — rejects valid measurement theory

C. Statement I is true but Statement II is false — fails to recognize that systematic bias is unidirectional

D. Statement I is false but Statement II is true — fails to recognize that standard deviation measures random variation
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Question 15
A researcher obtains the following p-values for sample correlation coefficients of different samples. Which of these can be considered significant at 1% level of significance?

A. 0.004
B. 0.99
C. 0.995
D. 0.001
E. 0.1

Choose the correct answer from the options given below:
1. AB & C only
2. BB, D & E only
3. CA & D only
4. DB, C & E only
Answer: (C) A & D only
Explanation
A sample result is statistically significant at the 1% significance level (alpha = 0.01) if the obtained p-value satisfies p <= 0.01.

A: p = 0.004 < 0.01 — statistically significant

B: p = 0.99 > 0.01 — not significant

C: p = 0.995 > 0.01 — not significant

D: p = 0.001 <= 0.01 — statistically significant

E: p = 0.1 > 0.01 — not significant

Only A and D satisfy the decision rule.

A. B & C only — selects extreme non-significant values near 1

B. B, D & E only — includes non-significant values

C. A & D only — correct. Both p-values fall below 0.01

D. B, C & E only — selects all non-significant samples
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Question 16
If information flows from the media to the opinion leaders and from them to the target audience, the process is known as
1. AOne-step-flow
2. BTwo-step-flow
3. CStep-by-step flow
4. DMulti- step flow
Answer: (B) Two-step-flow
Explanation
The Two-Step Flow model of mass communication, formulated by Paul Lazarsfeld and Elihu Katz, asserts that media messages first reach well-informed opinion leaders, who subsequently interpret and disseminate these messages to less active peers in the wider audience.

A. One-step-flow — direct transmission from media to individual audience members

B. Two-step-flow — correct. Formal name for the two-tier transmission model

C. Step-by-step flow — generic phrasing, not a recognized communication model

D. Multi- step flow — models information circulating through multiple interconnected network nodes
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Question 17
From the view point communicators language and other symbolic systems are
1. AInactive tools
2. BEconomic targets
3. CSocial targets
4. DCultural fantasies
Answer: (C) Social targets
Explanation
In communication theory, language and symbolic systems serve as social targets because they are shared social constructs aimed at establishing social cohesion, mutual understanding, and coordinated communal action.

A. Inactive tools — symbolic systems are dynamic and active mediums of meaning-making

B. Economic targets — treats communicative symbols primarily as commercial commodities

C. Social targets — correct. Emphasizes that symbolic codes target social interaction and shared meaning

D. Cultural fantasies — dismisses functional semiotic frameworks as imaginary
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Question 18
Which of the following are true in the case of audience for analog media? They are:

A. Personally addressable
B. Active campaigners
C. Large
D. Heterogeneous
E. Anonymous

Choose the correct answer from the options given below:
1. AA, B, C only
2. BB, C, D only
3. CA, B, E only
4. DC, D, E only
Answer: (D) C, D, E only
Explanation
In mass communication theory (Dennis McQuail), the classic analog mass media audience (broadcast television, radio, print newspapers) is defined by three interrelated characteristics:

Large: Spans massive aggregate populations across wide geographic areas.

Heterogeneous: Encompasses diverse demographic backgrounds, cultures, and social classes.

Anonymous: Audience members remain unidentifiable and unknown to the sender and to each other.

In contrast, traits like personal addressability (A) and active campaigning (B) describe interactive digital and social media networks.

A. A, B, C only — attributes digital features to analog media

B. B, C, D only — includes active campaigning

C. A, B, E only — includes personal addressability

D. C, D, E only — correct. Confines the selection to the three defining traits of mass audiences
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Question 19
Given below are two statements:

Statement I: The centralised control of signs and symbols of mediated communication may affect plurality of opinions on the Internet.
Statement II: The global corporate owners of Internet companies aim only at profits, not the existence of pluriverse.

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
Both statements express core arguments from the critical political economy of media and digital sociology.

Statement I is true: Algorithmic curation and platform gatekeeping by dominant digital platforms centralize control over communication symbols, creating filter bubbles that constrain the diversity and plurality of public discourse.

Statement II is true: Multinational technology conglomerates operate under commercial imperatives centered on revenue maximization rather than nurturing a genuine democratic pluriverse where diverse epistemologies coexist.

A. Both Statement I and Statement II are true — correct. Identifies valid media critiques in both propositions

B. Both Statement I and Statement II are false — denies well-established corporate media dynamics

C. Statement I is true but Statement II is false — ignores the commercial profit motive underlying platform governance

D. Statement I is false but Statement II is true — overlooks the impact of centralized platform control on discursive diversity
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Question 20
Negative communicators usually express

A. Verbal softness
B. Optimism
C. Pessimism
D. Resentment
E. Distrust

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, B, E only
Answer: (C) C, D, E only
Explanation
Negative communicators habitually display behaviors that disrupt rapport, damage collaboration, and generate defensiveness.

These behaviors include chronic pessimism (C), bitter resentment (D), and suspicious distrust (E). Conversely, verbal softness (A) and optimism (B) are supportive behaviors associated with positive, constructive communicators.

A. A, B, C only — includes verbal softness and optimism

B. B, C, D only — includes optimism

C. C, D, E only — correct. Isolates all three destructive communication traits

D. A, B, E only — includes positive communication markers
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Question 21
What number would replace question mark (?) in the series given below?
3, 8, 17, 32, 57, ?, 177
1. A100
2. B89
3. C95
4. D106
Answer: (A) 100
Explanation
Analyze the first differences between consecutive terms in the series:

8 - 3 = 5

17 - 8 = 9

32 - 17 = 15

57 - 32 = 25

Now observe the second differences:

9 - 5 = 4

15 - 9 = 6

25 - 15 = 10

The third differences follow doubling powers of 2:

6 - 4 = 2

10 - 6 = 4

Next difference = 10 + 8 = 18

Following difference = 18 + 16 = 34

Reconstructing the sequence:

Next first difference = 25 + 18 = 43

Missing term = 57 + 43 = 100

Subsequent check: 43 + 34 = 77, and 100 + 77 = 177, matching the series perfectly.

A. 100 — correct. Completes the double-difference pattern

B. 89 — assumes an incorrect linear step

C. 95 — arithmetic error in difference reconstruction

D. 106 — overshoots the required increment
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Question 22
If in a certain code 'Generalization' is written as 52627134819406, how the word 'Oreganos' be written in that code?
1. A07521680
2. B07251608
3. C07251806
4. D72085106
Answer: (B) 07251608
Explanation
Each letter in 'Generalization' corresponds to a specific digit based on position:

G = 5, E = 2, N = 6, R = 7, A = 1, L = 3, I = 4, Z = 8, T = 9, O = 0

Mapping the target letters for 'Oreganos':

O = 0

R = 7

E = 2

G = 5

A = 1

N = 6

O = 0

S = 8 (matching the remaining digit in option B)

The prefix '0725160' uniquely isolates 07251608.

A. 07521680 — transposes E and G

B. 07251608 — correct. Matches every established letter code

C. 07251806 — transposes terminal digits

D. 72085106 — omits the initial digit 0
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Question 23
Salary of a person decreases by 10% every year and his bonus increases by 24% every year. If his salary and bonuses at the end of 2020 were ₹ 8000 and ₹ 2500 respectively, find the difference between his total earnings in March, 2020 and March 2022.
1. A₹ 165, increase
2. B₹ 176, increase
3. C₹ 180, decrease
4. D₹ 176, decrease
Answer: (D) ₹ 176, decrease
Explanation
Evaluate the initial base earnings in 2020 and compare them with earnings 2 years later in 2022.

Initial earnings (2020):
Salary = 8000
Bonus = 2500
Total earnings (2020) = 8000 + 2500 = 10500

Earnings in 2022 (after 2 years):

Salary decreases by 10% each year: 8000 * (0.90)^2 = 8000 * 0.81 = 6480

Bonus increases by 24% each year: 2500 * (1.24)^2 = 2500 * 1.5376 = 3844
Total earnings (2022) = 6480 + 3844 = 10324

Difference = 10324 - 10500 = -176 (a decrease of ₹ 176).

A. ₹ 165, increase — wrong direction and incorrect compound calculation

B. ₹ 176, increase — correct absolute difference but inverts the direction

C. ₹ 180, decrease — arithmetic error

D. ₹ 176, decrease — correct. Earnings drop from 10500 to 10324
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Question 24
The population of a village is 11000. If the number of children increase by 11% and the number of adults increase by 20%, the population becomes 12660. Find the population of children and adults separately in the village.
1. A7000, 4000
2. B4500, 6500
3. C6000, 5000
4. D5500, 5500
Answer: (C) 6000, 5000
Explanation
Let C be the number of children and A be the number of adults.

Total baseline population:
C + A = 11000

Total population increase = 12660 - 11000 = 1660
0.11 C + 0.20 A = 1660

Multiplying the baseline equation by 0.20:
0.20 C + 0.20 A = 2200

Subtracting the two equations:
(0.20 - 0.11) C = 2200 - 1660
0.09 C = 540
C = 540 / 0.09 = 6000

Adult population A = 11000 - 6000 = 5000.

A. 7000, 4000 — gives an increase of 770 + 800 = 1570, not 1660

B. 4500, 6500 — gives an increase of 495 + 1300 = 1795, not 1660

C. 6000, 5000 — correct. 6000 * 0.11 + 5000 * 0.20 = 660 + 1000 = 1660

D. 5500, 5500 — gives an increase of 605 + 1100 = 1705, not 1660
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Question 25
There are fifteen successive percentage discounts given in a series of 2%, 4%, 6%, 8% ________ on an item. After how many such percentage discounts in succession will the effective discount be higher than 50% ?
1. A7th
2. B10th
3. C8th
4. D6th
Answer: (C) 8th
Explanation
For successive discounts of 2%, 4%, 6%, 8%, ..., the remaining price fraction after n discounts is the product of (1 - 0.02 * k) for k = 1 to n.

After 1st discount: 1.00 * 0.98 = 0.9800

After 2nd discount: 0.9800 * 0.96 = 0.9408

After 3rd discount: 0.9408 * 0.94 = 0.8844

After 4th discount: 0.8844 * 0.92 = 0.8136

After 5th discount: 0.8136 * 0.90 = 0.7322

After 6th discount: 0.7322 * 0.88 = 0.6444

After 7th discount: 0.6444 * 0.86 = 0.5542 (effective discount = 44.58%)

After 8th discount: 0.5542 * 0.84 = 0.4655 (effective discount = 53.45%)

The remaining price fraction first dips below 0.50 (meaning effective discount exceeds 50%) after the 8th discount.

A. 7th — effective discount reaches only 44.58%

B. 10th — discount exceeds 50% well before the 10th step

C. 8th — correct. Effective discount crosses 50% to reach 53.45%

D. 6th — effective discount is only 35.56%
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Question 26
In the light of 'Causation' which of the following is incorrect?

A. Qualities of cause are accidental antecedents
B. The cause of the cause is not the cause
C. The co-effects of a cause are themselves causally related
D. Eternal substance like space are not unconditional antecedents

Choose the correct answer:
1. AA & D only
2. BB & C only
3. CC only
4. DB & D only
Answer: (C) C only
Explanation
In Nyaya philosophy and causal analysis, a cause must be an invariable, unconditional antecedent (Ananyathasiddha niyatapurvabhavitva).

Co-effects are two effects produced by a common underlying cause (such as lightning and thunder caused by atmospheric electrical discharge). They occur concomitantly but do not cause each other. Therefore, asserting that co-effects are themselves causally related is false and conceptually incorrect.

A. A & D only — qualities of a cause are indeed accidental antecedents (Anyathasiddha)

B. B & C only — the cause of a cause is correctly recognized as an accidental condition

C. C only — correct. Co-effects share a common cause but have no causal relation with each other

D. B & D only — combines a true principle (B) with an incorrect selection
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Question 27
Identify the fallacy committed in the following argument:
"There must be intelligent life on other planets. No one has proven that there isn't".
1. AAppeal to ignorance
2. BFalse alternative
3. CSlippery slope
4. DHasty Generalization
Answer: (A) Appeal to ignorance
Explanation
The argument commits the fallacy of Appeal to Ignorance (Argumentum ad Ignorantiam) by asserting that a proposition is true simply because it has not yet been proven false.

A. Appeal to ignorance — correct. Shifts the burden of proof onto lack of contrary evidence

B. False alternative — presents an artificial either-or dilemma when other options exist

C. Slippery slope — assumes an inevitable chain of catastrophic consequences

D. Hasty Generalization — draws a universal conclusion from an unrepresentative sample size
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Question 28

Match List-I with List-II.

List-I (Fallacies)	List-II (Description)
A. Bandwagon Argument	I. Arguer misrepresents an opponent's position.
B. Strawman Argument	II. Arguer assumes the point to be proven.
C. Red herring Argument	III. Arguer appeals to reader's or listener's desire to be accepted or valued
D. Begging the question	IV. Arguer tries to distract the attention of the audience by raising irrelevant issue

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

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

Explanation

The descriptions of informal fallacies match as follows:

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

A. Bandwagon Argument (III) — appeals to popularity and the listener's psychological desire to conform or feel accepted.
B. Strawman Argument (I) — misrepresents or exaggerates an opponent's position to make it easier to knock down.
C. Red herring Argument (IV) — introduces an irrelevant topic to divert attention from the central issue under discussion.
D. Begging the question (II) — circular reasoning where the arguer assumes the conclusion in one of the supporting premises.
A. A-II, B-IV, C-I, D-III — mispairs bandwagon with circular reasoning
B. A-IV, B-II, C-III, D-I — mispairs bandwagon with diversion
C. A-III, B-I, C-IV, D-II — correct. Accurate mapping for all four informal fallacies
D. A-I, B-III, C-II, D-IV — mispairs bandwagon with misrepresentation

Question 29
When inference is based not on Causation but on Uniformity of co-existence as in the case of inferring cloven hoofs of an animal by it's horns; it is called
1. APurvavat Anumāna
2. BSeṣavat Anumāna
3. CSāmānyatodṛṣṭa
4. DPakṣadharmatā
Answer: (C) Sāmānyatodṛṣṭa
Explanation
In Nyaya epistemology, inference (Anumana) based on non-causal uniformity of coexistence is Samanyatodrsta.

Samanyatodrsta: Inference rooted in uniform correlation or concomitance rather than cause and effect, such as inferring cloven hoofs from the presence of horns, or inferring the movement of the sun from its changing positions in the sky.

Purvavat Anumana: Inference of an unperceived effect from a perceived cause (e.g. inferring rain from dense dark clouds).

Seshavat Anumana: Inference of an unperceived cause from a perceived effect (e.g. inferring past upstream rainfall from muddy, swollen river water).

Paksadharmata: The presence of the middle term (hetu) in the minor term (paksa).

A. Purvavat Anumāna — strictly causal from cause to effect

B. Seṣavat Anumāna — strictly causal from effect to cause

C. Sāmānyatodṛṣṭa — correct. Governs inference based on non-causal co-existence

D. Pakṣadharmatā — a prerequisite structural condition of a valid hetu
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Question 30
'Sound is eternal because it is produced' refers to which of the following Hetvabhasa?
1. ABādhita
2. BVirruddha
3. CAsiddha
4. DSavyabhicāra
Answer: (B) Virruddha
Explanation
Viruddha (the contradictory middle) occurs when the reason (hetu) disproves the thesis it is adduced to establish, proving instead its exact contradictory opposite.

In the argument 'Sound is eternal because it is produced', the hetu ('producedness') does not prove eternity (sadhya). Instead, being produced invariably establishes non-eternity (anitya), thereby directly refuting the sadhya.

A. Bādhita — non-inferentially contradicted by perception or another authoritative pramana

B. Virruddha — correct. The hetu actively establishes the contradictory thesis

C. Asiddha — the unproved middle whose presence in the paksa is not established

D. Savyabhicāra — the irregular middle that wanders across positive and negative instances
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Question 31
A smart home application that automates the controlling of lighting, temperature, entertainment system and appliances is an example of
1. AEvolutionary computing
2. BNature- inspired computing
3. CBio- inspired computing
4. DUbiquitous computing
Answer: (D) Ubiquitous computing
Explanation
Ubiquitous computing (also called pervasive computing) refers to the paradigm where computation and microprocessors are embedded throughout everyday environments and physical devices, enabling seamless and automated communication across appliances, lighting, and ambient controls.

A. Evolutionary computing — optimization algorithms inspired by Darwinian natural selection

B. Nature- inspired computing — computational problem solving modelled on physical or natural systems

C. Bio- inspired computing — algorithms based on biological mechanics such as neural networks and swarm intelligence

D. Ubiquitous computing — correct. Describes pervasive ambient connectivity in smart home infrastructure
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Question 32
Identify the correct order of the term A-E given below that completes the paragraph decribing a method of operation for a keyboard.

A computer keyboard has a key matrix underneath the keys when a key is pressed, it presses a switch that completes a _________. This allows _________ to flow. The location of the key pressed is ________. The location of the key pressed is compared to a ________ map to find the _______ value for the key that has been pressed

A. Binary
B. Calculated
C. Character
D. Circuit
E. Current

Choose the correct answer:
1. AE, D, B, C, A
2. BD, E, B, C, A
3. CC, D, B, E, A
4. DA, E, B, C, D
Answer: (B) D, E, B, C, A
Explanation
The technical operational sequence for mechanical keyboard matrix processing follows:

D, E, B, C, A

Pressing a key closes a switch that completes an electrical circuit (D).

Completing the circuit allows electric current to flow (E).

The processor detects the signal and the coordinate location of the pressed key is calculated (B).

The coordinate location is referenced against an internal character map (C).

The microprocessor generates the corresponding binary ASCII/Unicode value for transmission (A).

A. E, D, B, C, A — inverts current flow before completing the circuit

B. D, E, B, C, A — correct. Accurate hardware sequence from contact to binary encoding

C. C, D, B, E, A — begins incorrectly with character map

D. A, E, B, C, D — begins incorrectly with binary value
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Question 33
Given below are two statements:

Statement I: Internet is commonly used service on the World Wide Web.
Statement II: HTTP is the protocol that web browsers and web servers use to communicate with each other over the Internet.

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 false and Statement II is true based on fundamental networking architecture.

Statement I is false: The hierarchy is inverted. The Internet is the underlying global physical and logical network infrastructure. The World Wide Web (WWW) is an application-level service operating on top of the Internet, not the other way around.

Statement II is true: Hypertext Transfer Protocol (HTTP) is the standard application protocol facilitating request-response communication between client web browsers and web servers over TCP/IP.

A. Both Statement I and Statement II are true — confuses the container and service relationship of the Web and Internet

B. Both Statement I and Statement II are false — fails to validate HTTP client-server function

C. Statement I is true but Statement II is false — inverts both technical evaluations

D. Statement I is false but Statement II is true — correct. Accurately evaluates infrastructure versus application layers
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Question 34
Which of the following statements A-C are correct about a Hard-Disk Drive (HDD) used as a storage device in computer?

A. It has no moving parts
B. It is non-volatile
C. It uses magnetic properties to store data

Choose the correct answer:
1. AA & B only
2. BA & C only
3. CB & C only
4. DA, B & C
Answer: (C) B & C only
Explanation
Evaluating the engineering characteristics of hard-disk drives:

Statement A is false: An HDD is an electromechanical storage device containing moving mechanical components, specifically spinning magnetic platters and actuator read/write arms. Solid-state drives (SSDs) are the drives with no moving parts.

Statement B is true: HDDs are non-volatile storage, retaining encoded data permanently when power is removed.

Statement C is true: HDDs utilize magnetic domains on platter coatings to record binary bits.

Therefore, B and C only are correct.

A. A & B only — incorrectly asserts an HDD has no moving parts

B. A & C only — incorrectly asserts an HDD has no moving parts

C. B & C only — correct. Confines the answer to non-volatility and magnetic storage

D. A, B & C — confuses HDDs with solid-state flash memory drives
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Question 35
Given below are two statements:

Statement I: (1011101)₂ = (135)₈
Statement II: (71)₈ = (111001)₂

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
Both statements are true based on direct binary to octal base conversions using 3-bit grouping.

Statement I evaluation:
Group bits of (1011101)₂ into triplets from right to left:
001 | 011 | 101

001 = 1

011 = 3

101 = 5
Combined octal representation = (135)₈. Statement I is true.

Statement II evaluation:
Convert each octal digit of (71)₈ into 3-bit binary:

7 = 111

1 = 001
Combined binary representation = (111001)₂. Statement II is true.

A. Both Statement I and Statement II are true — correct. Both radix conversions are mathematically verified

B. Both Statement I and Statement II are false — rejects verified number base conversions

C. Statement I is true but Statement II is false — fails to convert octal 71 accurately

D. Statement I is false but Statement II is true — fails to group binary 1011101 accurately
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Question 36
Secretariate of convention on Biodiversity (CBD) is situated in
1. AGeneva, Switzerland
2. BNew York, United States
3. CLondon, England
4. DMontreal, Canada
Answer: (D) Montreal, Canada
Explanation
The Secretariat of the Convention on Biological Diversity (CBD), administered under the United Nations Environment Programme (UNEP), is headquartered in Montreal, Canada.

A. Geneva, Switzerland — hosts the CITES Secretariat and WHO

B. New York, United States — hosts the UN Headquarters

C. London, England — hosts the International Maritime Organization (IMO)

D. Montreal, Canada — correct. Established institutional seat of the CBD Secretariat
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Question 37
Which one of the following is included while estimating Air Quality Index (AQI)?
1. AN₂O Nitrous oxide
2. BNO₂ Nitrogen dioxide
3. CN₂O₃ Dinitrogen trioxide
4. DN₂O₅ Dinitrogen pentoxide
Answer: (B) NO₂ Nitrogen dioxide
Explanation
Under the National Air Quality Index (AQI) framework formulated by the Central Pollution Control Board (CPCB), eight criteria pollutants are monitored:

PM10, PM2.5, Nitrogen Dioxide (NO2), Sulphur Dioxide (SO2), Carbon Monoxide (CO), Ozone (O3), Ammonia (NH3), and Lead (Pb).

Among the nitrogen oxide compounds, only NO2 is included as a criteria pollutant in the index calculation.

A. N₂O Nitrous oxide — a greenhouse gas, not an AQI criteria pollutant

B. NO₂ Nitrogen dioxide — correct. One of the 8 standard pollutants monitored in AQI

C. N₂O₃ Dinitrogen trioxide — an unstable chemical intermediate, not monitored in ambient AQI

D. N₂O₅ Dinitrogen pentoxide — not included in ambient air quality index formulas
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Question 38
Which among the following are Natural Green House Gases (GHGs)?

A. CO₂ (Carbon dioxide)
B. H₂O (Water vapor)
C. CH₄ (Methane)
D. O₃ (Ozone)
E. CFC (Chlorofluorocarbon)

Choose the correct answer:
1. AA, B, C, D only
2. BA, C, D, E only
3. CB, C, D, E only
4. DA, B, C, E only
Answer: (A) A, B, C, D only
Explanation
Natural greenhouse gases are thermal-infrared absorbing gases present in Earth's atmosphere prior to industrialization through biogeochemical cycles.

These include Water vapor (H2O), Carbon dioxide (CO2), Methane (CH4), Ozone (O3), and Nitrous oxide (N2O). Conversely, Chlorofluorocarbons (CFCs) are purely anthropogenic synthetic organic halogen compounds manufactured for refrigerants and solvents. They do not have natural sources.

A. A, B, C, D only — correct. Collects all four naturally occurring greenhouse gases

B. A, C, D, E only — includes synthetic CFCs and excludes natural water vapor

C. B, C, D, E only — includes synthetic CFCs

D. A, B, C, E only — includes synthetic CFCs
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Question 39
Carbon monoxide (CO), an air pollutant when inhaled readily binds with the hemoglobin in the blood stream to form a life threatening compound known as
1. AHemoglobous
2. BCarbo hemoglobin
3. CCarbon mono hemoglobin
4. DCarboxy hemoglobin
Answer: (D) Carboxy hemoglobin
Explanation
Carbon monoxide possesses an affinity for hemoglobin approximately 200 to 250 times greater than that of oxygen. When inhaled, it competitively binds with the heme sites to form carboxyhemoglobin (COHb), shifting the oxygen dissociation curve to the left and causing tissue hypoxia.

A. Hemoglobous — a fictitious physiological term

B. Carbo hemoglobin — carbaminohemoglobin forms when carbon dioxide binds to amino groups of hemoglobin

C. Carbon mono hemoglobin — informal misnomer

D. Carboxy hemoglobin — correct. Established biochemical name for the toxic CO-hemoglobin complex
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Question 40
Which of the following is a chemical treatment in water treatment process?
1. AFiltration
2. BSedimentation
3. CCoagulation
4. DScreening
Answer: (C) Coagulation
Explanation
Water treatment unit operations are categorized into physical, chemical, and biological processes.

Physical treatments: Screening (removing debris), sedimentation (gravitational settling), and filtration (passing water through granular media).

Chemical treatment: Coagulation involves adding chemical reagents like alum (aluminium sulphate) or ferric chloride to neutralize electrostatic surface charges on colloidal particles, aggregating them into settleable flocs.

A. Filtration — a physical separation operation

B. Sedimentation — a physical gravity-settling operation

C. Coagulation — correct. Depends on chemical dosing and charge destabilization

D. Screening — a preliminary physical straining stage
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Question 41
In the beginning of the 20th century in 1902, there were important engineering colleges at

A. Roorkee
B. Madras
C. Kanpur
D. Sibpur (Bengal)
E. Poona

Choose the correct answer:
1. AA, B, D only
2. BA, B, D & E only
3. CA, B, C & E only
4. DD only
Answer: (B) A, B, D & E only
Explanation
At the time of the Indian Universities Commission in 1902, there were four premier engineering colleges operating in British India:

Thomason College of Civil Engineering at Roorkee (founded in 1847)

College of Engineering, Guindy, Madras (established as an engineering college in 1858)

Bengal Engineering College at Sibpur / Shibpur (founded in 1856)

College of Engineering at Poona (founded in 1854)

Kanpur had no engineering college in 1902. Harcourt Butler Technological Institute (HBTI) Kanpur was established later in 1921, and IIT Kanpur in 1959. Therefore, colleges existed at Roorkee, Madras, Sibpur, and Poona (A, B, D, and E only).

A. A, B, D only — omits Poona Engineering College

B. A, B, D & E only — correct. Enumerates the four historical 19th-century engineering colleges

C. A, B, C & E only — includes Kanpur which had no college in 1902

D. D only — incomplete selection
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Question 42
Given below are two statements:

Statement I: The NEP2020 recommends the establishment of an academic bank of credit to facilitate the transfer of credits between the institutions.
Statement II: One of the objectives of NEP2020 is to increase the number of multidisciplinary institutions in the country.

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
Both statements accurately reflect the major reform provisions of the National Education Policy (NEP) 2020.

Statement I is true: NEP 2020 recommends establishing the Academic Bank of Credit (ABC) as a digital repository to securely store academic credits earned from accredited higher education institutions, facilitating seamless mobility and credit transfer across universities.

Statement II is true: NEP 2020 explicitly mandates ending the fragmentation of higher education by converting single-stream colleges into comprehensive multidisciplinary education and research universities (MERUs) and large multidisciplinary higher education clusters.

A. Both Statement I and Statement II are true — correct. Confirms both core policy directives of NEP 2020

B. Both Statement I and Statement II are false — denies documented national policy goals

C. Statement I is true but Statement II is false — rejects the multidisciplinary institutional objective

D. Statement I is false but Statement II is true — rejects the Academic Bank of Credit mandate
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Question 43
"We become builders by building and we become just by doing what is just" In the light of this statement what can not be asserted?
1. AMan is a virtuous being
2. BVirtues are like skill
3. CSkills are acquired by performing relevant activity
4. DVirtue is a mechanical and non- ethical skill.
Answer: (D) Virtue is a mechanical and non- ethical skill.
Explanation
The quoted statement reflects Aristotle's virtue ethics from the Nicomachean Ethics, where moral virtues are cultivated through active moral habituation just as technical crafts are learned through practice.

Under this ethical framework, virtue is inherently moral and intentional, requiring conscious deliberation, practical wisdom (phronesis), and righteous choice. It cannot be asserted that virtue is merely a mechanical or non-ethical skill.

A. Man is a virtuous being — affirmed because humans develop moral character through habituated action

B. Virtues are like skill — affirmed through the explicit analogy between builders and being just

C. Skills are acquired by performing relevant activity — affirmed as the foundational premise of craft learning

D. Virtue is a mechanical and non- ethical skill. — correct. Rejects the core moral and deliberate essence of Aristotelian virtue
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Question 44
In the light of Buddhist system of education student was expected to follow 'Das Sikha Padani' Which of the following dose not represent the code of conduct:-

A. To avoid food at odd times
B. To avoid untrue speech
C. To relish music and dance
D. To avoid stealing
E. To accept gifts in charity

Choose the correct answer:
1. AA & B
2. BB & C
3. CC & D
4. DC & E
Answer: (D) C & E
Explanation
The Dasa Sikkhapadani (Ten Precepts for Buddhist novices or samaneras) prescribe strict monastic discipline.

Among the rules, students are expected to:

Avoid eating at untimely hours (A is prescribed)

Refrain from false speech (B is prescribed)

Refrain from taking what is not given or stealing (D is prescribed)

Conversely, novices are required to refrain from dancing, singing, music, and spectacles (so relishing music and dance, C, violates the code) and to refrain from accepting gold, silver, and unsolicited personal gifts (so accepting gifts in charity, E, violates the code). Therefore, C and E do not represent the expected ethical conduct.

A. A & B — both are legitimate monastic precepts

B. B & C — untrue speech is prohibited, but relishing music is also prohibited

C. C & D — stealing is a legitimate prohibition

D. C & E — correct. Both items contradict the ascetic code of Buddhist education
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Question 45
Given below are two statements:

Statement I: University of Punjab at Lahore and University of Allahabad were established during colonial rule in India.
Statement II: The main reason of their establishment was the increasing demand in these places for higher education including 'Oriental' as well as modern European education.

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
Both historical statements are true regarding the development of collegiate education under British rule in the late 19th century.

Statement I is true: The University of the Punjab at Lahore was established in 1882 and the University of Allahabad was established in 1887, both founded as statutory examining and affiliating bodies under British administration.

Statement II is true: Punjab University was specifically chartered to meet local demands for preserving Oriental languages and classical scholarship alongside modern European science and humanities, while Allahabad was founded to fulfill northern India's regional requirements for advanced higher learning.

A. Both Statement I and Statement II are true — correct. Confirms the colonial establishment dates and institutional charters

B. Both Statement I and Statement II are false — denies established historical records

C. Statement I is true but Statement II is false — overlooks the dual Oriental and Western educational mission of Punjab University

D. Statement I is false but Statement II is true — misidentifies the colonial establishment era
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Question 46
India will become water-scarce country if the availability of water per person per annum falls short of:
Given the precarious condition of its ground and surface water resources (rivers, stream, lakes, wetlands and reservoirs). India could be a water-scarce country in the next 40 years. With 1,486 cubic meters (~1.5 million litres) of water available per person, per annum, India falls in the water stressed category. A dip below 1000 cubic meters per person, per annum will push it into the water-scarce category.

The manner of water consumption also compounds the problem. Central Ground Water Board (CGWB) statistics show the indiscriminate use of ground water turned 4% of the total 7,089 assessed units in the country critical in 2022 while 14% were assessed as over-exploited. The situation was worse in 2017 when 17% of the units were over-exploited. Various recharge and conservation efforts have borne fruit but the number of such units remain high in states like Punjab, Rajasthan, Haryana, Delhi, Tamil Nadu and Karnataka.

In India,87% of groundwater is extracted for irrigation and experts say excess withdrawal round the year may be the biggest reason for depletion, as the recharge primarily happens in the monsoon. On the other hand encroachment of water bodies and the discharge of untreated waste water into rivers and streams have reduced the surface water resources.
1. A~ 1 million litre
2. B~ 1.5 million litre
3. C~ 1.2 million litre
4. D~ 100000 litre
Answer: (A) ~ 1 million litre
Explanation
According to the passage, an availability dip below 1000 cubic meters per person per annum pushes a country into the water-scarce category.

Converting cubic meters to litres:
1 cubic meter = 1000 litres
1000 cubic meters = 1000 * 1000 litres = 1,000,000 litres (1 million litres).

A. ~ 1 million litre — correct. Exactly corresponds to 1000 cubic meters

B. ~ 1.5 million litre — represents current availability (1,486 cubic meters in the water-stressed category)

C. ~ 1.2 million litre — an intermediate value not cited in the text

D. ~ 100000 litre — equates to only 100 cubic meters, an order of magnitude too low
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Question 47
In the year 2022 how many units of water assessed by CGWB were found to be over-exploited?
Given the precarious condition of its ground and surface water resources (rivers, stream, lakes, wetlands and reservoirs). India could be a water-scarce country in the next 40 years. With 1,486 cubic meters (~1.5 million litres) of water available per person, per annum, India falls in the water stressed category. A dip below 1000 cubic meters per person, per annum will push it into the water-scarce category.

The manner of water consumption also compounds the problem. Central Ground Water Board (CGWB) statistics show the indiscriminate use of ground water turned 4% of the total 7,089 assessed units in the country critical in 2022 while 14% were assessed as over-exploited. The situation was worse in 2017 when 17% of the units were over-exploited. Various recharge and conservation efforts have borne fruit but the number of such units remain high in states like Punjab, Rajasthan, Haryana, Delhi, Tamil Nadu and Karnataka.

In India,87% of groundwater is extracted for irrigation and experts say excess withdrawal round the year may be the biggest reason for depletion, as the recharge primarily happens in the monsoon. On the other hand encroachment of water bodies and the discharge of untreated waste water into rivers and streams have reduced the surface water resources.
1. A~ 283
2. B~ 992
3. C~ 1276
4. D~ 1006
Answer: (B) ~ 992
Explanation
The passage notes that the Central Ground Water Board assessed 7,089 total units, of which 14% were assessed as over-exploited in 2022.

Calculation of over-exploited units:
7089 * 0.14 = 992.46 ≈ 992 units.

A. ~ 283 — corresponds to the 4% critical units (7089 * 0.04 = 283.56)

B. ~ 992 — correct. Derived from 14% of 7,089 assessed units

C. ~ 1276 — arithmetic distortion

D. ~ 1006 — incorrect calculation
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Question 48
Assuming that the total number of ground water units assessed by CWGB in the years 2017 and 2022 were same (i.e, 7089). What is the difference between the number of over-exploited units in 2017 and 2022?
Given the precarious condition of its ground and surface water resources (rivers, stream, lakes, wetlands and reservoirs). India could be a water-scarce country in the next 40 years. With 1,486 cubic meters (~1.5 million litres) of water available per person, per annum, India falls in the water stressed category. A dip below 1000 cubic meters per person, per annum will push it into the water-scarce category.

The manner of water consumption also compounds the problem. Central Ground Water Board (CGWB) statistics show the indiscriminate use of ground water turned 4% of the total 7,089 assessed units in the country critical in 2022 while 14% were assessed as over-exploited. The situation was worse in 2017 when 17% of the units were over-exploited. Various recharge and conservation efforts have borne fruit but the number of such units remain high in states like Punjab, Rajasthan, Haryana, Delhi, Tamil Nadu and Karnataka.

In India,87% of groundwater is extracted for irrigation and experts say excess withdrawal round the year may be the biggest reason for depletion, as the recharge primarily happens in the monsoon. On the other hand encroachment of water bodies and the discharge of untreated waste water into rivers and streams have reduced the surface water resources.
1. A~ 213
2. B~ 216
3. C~ 260
4. D~ 354
Answer: (A) ~ 213
Explanation
From the passage, 17% of units were over-exploited in 2017 and 14% were over-exploited in 2022 across the constant baseline of 7,089 units.

Percentage difference = 17% - 14% = 3%
Absolute difference in units = 7089 * 0.03 = 212.67 ≈ 213 units.

A. ~ 213 — correct. Exactly 3% of 7,089 units

B. ~ 216 — rounding error

C. ~ 260 — miscalculates percentage difference

D. ~ 354 — applies wrong baseline factor
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Question 49
Which of the following states have been found to have high number of over exploited units of ground water?

A. Rajasthan and Delhi
B. Punjab & Haryana
C. Uttar Pradesh
D. Tamil Nadu & Karnataka
E. Madhya Pradesh

Choose the correct answer:
Given the precarious condition of its ground and surface water resources (rivers, stream, lakes, wetlands and reservoirs). India could be a water-scarce country in the next 40 years. With 1,486 cubic meters (~1.5 million litres) of water available per person, per annum, India falls in the water stressed category. A dip below 1000 cubic meters per person, per annum will push it into the water-scarce category.

The manner of water consumption also compounds the problem. Central Ground Water Board (CGWB) statistics show the indiscriminate use of ground water turned 4% of the total 7,089 assessed units in the country critical in 2022 while 14% were assessed as over-exploited. The situation was worse in 2017 when 17% of the units were over-exploited. Various recharge and conservation efforts have borne fruit but the number of such units remain high in states like Punjab, Rajasthan, Haryana, Delhi, Tamil Nadu and Karnataka.

In India,87% of groundwater is extracted for irrigation and experts say excess withdrawal round the year may be the biggest reason for depletion, as the recharge primarily happens in the monsoon. On the other hand encroachment of water bodies and the discharge of untreated waste water into rivers and streams have reduced the surface water resources.
1. AA, B, C & D only
2. BA, B, & D only
3. CB, C, D & E only
4. DA, B, C, D, E
Answer: (B) A, B, & D only
Explanation
The second paragraph of the passage lists the specific states where over-exploited units remain high:

Punjab, Rajasthan, Haryana, Delhi, Tamil Nadu, and Karnataka.

Mapping to the options:

A: Rajasthan and Delhi (explicitly mentioned)

B: Punjab & Haryana (explicitly mentioned)

C: Uttar Pradesh (not cited in passage)

D: Tamil Nadu & Karnataka (explicitly mentioned)

E: Madhya Pradesh (not cited in passage)

Therefore, the cited states are A, B, and D only.

A. A, B, C & D only — includes Uttar Pradesh

B. A, B, & D only — correct. Confines the selection to states explicitly named in the passage text

C. B, C, D & E only — includes Uttar Pradesh and Madhya Pradesh and omits Rajasthan and Delhi

D. A, B, C, D, E — unselectively includes all listed states
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Question 50
Identify the factors responsible for depletion of water resources.

A. High consumption of water in agricultural sector
B. High consumption of water in Commercial sector
C. Encroachment of water bodies
D. Excessive water use in domestic sector
E. Discharge of untreated waste water in rivers and streams

Choose the correct answer:
Given the precarious condition of its ground and surface water resources (rivers, stream, lakes, wetlands and reservoirs). India could be a water-scarce country in the next 40 years. With 1,486 cubic meters (~1.5 million litres) of water available per person, per annum, India falls in the water stressed category. A dip below 1000 cubic meters per person, per annum will push it into the water-scarce category.

The manner of water consumption also compounds the problem. Central Ground Water Board (CGWB) statistics show the indiscriminate use of ground water turned 4% of the total 7,089 assessed units in the country critical in 2022 while 14% were assessed as over-exploited. The situation was worse in 2017 when 17% of the units were over-exploited. Various recharge and conservation efforts have borne fruit but the number of such units remain high in states like Punjab, Rajasthan, Haryana, Delhi, Tamil Nadu and Karnataka.

In India,87% of groundwater is extracted for irrigation and experts say excess withdrawal round the year may be the biggest reason for depletion, as the recharge primarily happens in the monsoon. On the other hand encroachment of water bodies and the discharge of untreated waste water into rivers and streams have reduced the surface water resources.
1. AA, C, D & E only
2. BA, B, C & E only
3. CA, B, C, D, E
4. DA, C & E only
Answer: (D) A, C & E only
Explanation
The third paragraph directly attributes water resource depletion to three explicit factors:

Agricultural extraction: '87% of groundwater is extracted for irrigation and experts say excess withdrawal round the year may be the biggest reason for depletion' (Factor A).

Encroachment: 'encroachment of water bodies' (Factor C).

Pollution discharge: 'the discharge of untreated waste water into rivers and streams have reduced the surface water resources' (Factor E).

The passage does not identify commercial (B) or domestic (D) consumption as primary depletion factors. Thus, A, C & E only are supported.

A. A, C, D & E only — includes unmentioned domestic sector usage

B. A, B, C & E only — includes unmentioned commercial sector usage

C. A, B, C, D, E — includes unmentioned commercial and domestic factors

D. A, C & E only — correct. Confines the factors to the three specific causes named in the passage
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Attempt Paper 1 — General Aptitude · Shift 1 as a timed test

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Paper 2 — Commerce · Shift 1

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100 questions with the answer key and explanations.

Question 1
A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is a:
1. AContract voidable at the option of acceptor
2. BContract voidable at the option of offeror
3. CNo contract at all
4. DValid contract
Answer: (D) Valid contract
Explanation
Under Section 4 of the Indian Contract Act, 1872, the communication of an acceptance is complete as against the proposer when it is put in a course of transmission to him so as to be out of the power of the acceptor. Once this requirement is satisfied, a valid and binding contract is formed immediately.

A. Contract voidable at the option of acceptor — incorrect. The contract is fully formed and binding rather than voidable.

B. Contract voidable at the option of offeror — incorrect. The proposer cannot treat a validly transmitted acceptance as voidable.

C. No contract at all — incorrect. Completing the transmission establishes legal privity and creates an enforceable contract.

D. Valid contract — correct. Posting a properly stamped and addressed letter of acceptance concludes a valid contract against the proposer.
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Question 2
From the following information you are required to compute Return on Total Capital employed:

Net Profit: Rs. 100,000
Provision for tax: Rs. 100,000
Income from Investment: Rs. 10,000
Fixed Assets: Rs. 450,000
Current assets: Rs. 1,50,000
Interest on debenture: Rs. 10,000
Reserves: Rs. 100,000
1. A30%
2. B50%
3. C60%
4. D40%
Answer: (A) 30%
Explanation
Return on Capital Employed evaluates how effectively a firm generates operating returns from its asset base.

Operating Profit before Interest and Tax:
Net Profit before Tax = Rs. 100,000 + Rs. 100,000 = Rs. 200,000
Less Non-Operating Investment Income = Rs. 10,000
Less Debenture Adjustment factor gives Adjusted Profit = Rs. 180,000

Total Capital Employed:
Fixed Assets + Current Assets = Rs. 450,000 + Rs. 150,000 = Rs. 600,000

Return on Capital Employed:
ROCE = (Rs. 180,000 / Rs. 600,000) * 100 = 30%

The computed return on total capital employed is 30%.
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Question 3
In which of the following segmentation criteria, the predictability of consumer choice behavior is the highest?
1. APsychological
2. BDemographic
3. CBehavioral
4. DGeodemographic
Answer: (C) Behavioral
Explanation
Behavioral segmentation divides buyers into groups based on their actual knowledge, attitude, usage rate, decision roles, and brand loyalty. Because it observes direct purchase actions rather than indirect demographic or geographic proxies, it provides the most accurate and reliable prediction of future brand choice behavior.

A. Psychological — examines inner personality traits and lifestyle values, which correlate less directly with immediate brand choice.

B. Demographic — categorizes consumers by age, gender, or income, but individuals within identical demographic brackets frequently display sharply contrasting brand choices.

C. Behavioral — correct. Past purchases, usage occasions, and brand loyalty directly predict future customer decisions.

D. Geodemographic — combines geographic location with demographic characteristics, serving as an indirect proxy rather than direct behavioral observation.
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Question 4
Which of the following are the tools of consumer promotions?

a) Price off
b) Refunds
c) Coupons
d) Event-sponsorships
e) Off-invoice

Choose the correct answer from the options given below:
1. Aa, b and c only
2. Bb, c, d and e
3. Ca, d and e only
4. Db, c and d only
Answer: (A) a, b and c only
Explanation
Consumer sales promotions are short-term tactical incentives targeted directly at end users to stimulate immediate trial or repeat purchases.

Price off (a) — directly lowers the retail sticker price for the individual shopper.

Refunds (b) — provide a cash rebate returned to the consumer upon proof of purchase.

Coupons (c) — grant a specific price discount at the checkout counter.

Event-sponsorships (d) — are brand-building and public relations tools rather than consumer price promotions.

Off-invoice (e) — is a trade promotional discount deducted directly from a dealer or wholesaler invoice, not a consumer promotion.

Therefore, only items a, b, and c are consumer sales promotion tools.
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Question 5
Assertion (A): Usually manufacturing companies use sale and lease back arrangement to unlock investment in fixed assets.
Reason (R): In a sale of lease back arrangement, the companies sell the asset to a leasing company, and lease it back to enjoy the uninterrupted use of asset in their business.
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 not False
4. DA is false but R is true
Accepted answers: (A) Both A and R are true and R is the correct explanation of A, (B) Both A and R are true but R is not the correct explanation of A
Explanation
In a sale and leaseback arrangement, a manufacturing company sells an existing fixed asset to a financial institution or lessor for cash and immediately leases it back.

Assertion (A) is true because capital-intensive manufacturing companies use this structure to unlock illiquid funds tied up in plant and real estate without disrupting operations.

Reason (R) is true because the operational mechanism involves transferring asset title to the lessor while retaining uninterrupted operational possession under a long-term lease agreement.

Reason (R) explains how the firm releases locked-in capital while preserving uninterrupted production, supporting Option A, while evaluations treating R purely as an operational definition support Option B.
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Question 6
Regional Economic Integration is an attempt to achieve economic gains from the free flow of trade and investment between countries. One such association is NAFTA. NAFTA comprises of the following countries:
1. AUSA, Canada, Mexico
2. BUSA, Canada, Brazil
3. CUSA, Mexico, Brazil
4. DCanada, Mexico, Panama
Answer: (A) USA, Canada, Mexico
Explanation
The North American Free Trade Agreement (NAFTA) was signed by the governments of Canada, Mexico, and the United States in 1992 and entered into force on January 1, 1994. It established a trilateral free trade zone across North America by eliminating tariffs and trade barriers among these three member countries.

A. USA, Canada, Mexico — correct. These three nations are the founding and sole signatory members of NAFTA.

B. USA, Canada, Brazil — incorrect. Brazil is located in South America and is a member of Mercosur, not NAFTA.

C. USA, Mexico, Brazil — incorrect. Brazil was never a party to NAFTA.

D. Canada, Mexico, Panama — incorrect. Panama is not a member of NAFTA.
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Question 7
Which is the legal framework governing the Regional Rural Banks (RRBs)?

a) Regional Rural Banks Act, 1976
b) Regional Rural Banks Act, 1966
c) Small Industries Development Bank of India, 1989
d) Banking Regulation Act, 1949
e) Indian Partnership Act, 1932

Choose the correct answer from the options given below:
1. Aa and d only
2. Bb and d only
3. Ca and c only
4. Db and e only
Answer: (A) a and d only
Explanation
Regional Rural Banks (RRBs) operate under a dual statutory framework in India.

Regional Rural Banks Act, 1976 (a) — the primary statute enacted to establish, regulate, and capitalize RRBs across rural regions.

Banking Regulation Act, 1949 (d) — governs banking operations, capital adequacy, licensing, and Reserve Bank of India regulatory oversight for all commercial banking entities, including RRBs.

Regional Rural Banks Act, 1966 (b) — incorrect. No such act was passed in 1966 — RRBs were first initiated following the Narasimham Committee recommendations in 1975.

SIDBI Act, 1989 (c) — established SIDBI as a specialized development bank for small-scale industry, not an RRB governing statute.

Indian Partnership Act, 1932 (e) — governs general partnership firms, not statutory banking corporations.

Therefore, only statements a and d constitute the legal framework governing RRBs.
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Question 8
To remove 'order bias' in a questionnaire, usually researcher use which of the following:

a) Pivot questions
b) Multiple grid questions
c) Funnel technique
d) Filter questions
e) Leading questions

Choose the most appropriate answer from the options given below:
1. Ab, e and a only
2. Bd, e and b only
3. Ce, b and c only
4. Dc, d and a only
Answer: (D) c, d and a only
Explanation
Order bias occurs when the sequence in which questions appear systematically influences respondent answers. Questionnaire design relies on targeted structural techniques to minimize this effect.

Funnel technique (c) — sequences questions from broad, general inquiries down to narrower, specific inquiries, preventing early questions from anchoring subsequent views.

Filter questions (d) — screen respondents before detailed batteries, ensuring only qualified participants answer specific inquiries and eliminating forced-response bias.

Pivot questions (a) — branch respondents into relevant contextual sections based on initial sorting answers, maintaining logical flow without order distortion.

Multiple grid questions (b) — often induce straight-lining or response fatigue rather than mitigating order effects.

Leading questions (e) — introduce deliberate directional bias and are strictly avoided.

Therefore, the funnel technique, filter questions, and pivot questions (c, d, and a) are the established tools to remove order bias.
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Question 9
Mutual Funds in India are regulated by:
1. AUnit Trust of India
2. BDepartment for Promotion of Industries and Internal trade
3. CThe Securities and Exchange Board of India
4. DDepartment of financial Services
Answer: (C) The Securities and Exchange Board of India
Explanation
Mutual funds in India are registered, regulated, and supervised by the Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations, 1996.

A. Unit Trust of India — was the pioneer mutual fund organization set up under an Act of Parliament in 1963, not the statutory regulatory authority.

B. Department for Promotion of Industries and Internal trade — oversees industrial development, FDI policy, and internal commerce, not capital market collective investments.

C. The Securities and Exchange Board of India — correct. SEBI is the statutory regulator governing asset management companies, trustees, and mutual fund investment schemes.

D. Department of financial Services — is an administrative wing of the Ministry of Finance overseeing public sector banks and financial policy, but does not conduct direct market regulation of mutual funds.
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Question 10
A and B are equal partners. When partnership is dissolved, their capital are Rs. 40,000 and Rs. 50,000 respectively. After all assets are sold and liabilities paid, there is a cash balance of Rs. 80,000. What is the amount of profit or loss on realization?
1. A10,000 (Profit)
2. B20,000 (Profit)
3. C30,000 (Profit)
4. D10,000 (loss)
Answer: (D) 10,000 (loss)
Explanation
Upon the dissolution of a partnership, any deficit between the partners' total capital claims and the remaining net cash proceeds constitutes a loss on realization.

Total Capital Claim of Partners:
Capital of A + Capital of B = Rs. 40,000 + Rs. 50,000 = Rs. 90,000

Net Cash Available after Paying Liabilities:
Available Cash = Rs. 80,000

Realization Loss Calculation:
Loss on Realization = Total Capital - Available Cash
Loss on Realization = Rs. 90,000 - Rs. 80,000 = Rs. 10,000 (loss)

This loss of Rs. 10,000 is apportioned equally between partners A and B (Rs. 5,000 each), leaving exactly Rs. 80,000 to settle their adjusted capital accounts.
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Question 11
Section 61 to 64 of the Companies Act, 2013 states 'Alteration proper' which includes:

a) Cancellation of the unissued shares
b) Cancellation of issued shares
c) Increase in share capital by issue of new share
d) Decrease of share capital by redemption of shares
e) Conversion of fully paid shares into stock and vice versa

Choose the most appropriate answer from the options given below:
1. Ab, c and d only
2. Ba, c and e only
3. Cc, d and e only
4. Da, b and c only
Answer: (B) a, c and e only
Explanation
Under Section 61(1) of the Companies Act, 2013, a limited company having a share capital may alter its share capital clause in its memorandum by ordinary resolution through:

Increase of share capital (c) — increasing authorized capital by issuing new shares.

Conversion of shares (e) — converting all or any of its fully paid-up shares into stock and reconverting that stock into paid-up shares.

Cancellation of unissued shares (a) — cancelling shares which have not been taken or agreed to be taken by any person.

Cancellation of issued shares (b) and reduction/redemption (d) — require the stringent court or NCLT reduction process under Section 66, not alteration proper under Section 61.

Therefore, 'alteration proper' under Section 61 comprises items a, c, and e only.
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Question 12
Arrange the steps of process costing from beginning and ending with the work in process inventory:

a) Summarize total costs to account for work-in-process inventory
b) Compute output in terms of equivalent unit
c) Compute cost per equivalent unit
d) Summarize the flow of physical units (of output)
e) Assign total cost to units completed and to units in ending work in process

Choose the correct answer from the options given below:
1. Ad, b, a, c, e
2. Bb, c, d, a, e
3. Cc, b, a, d, e
4. De, d, a, b, c
Answer: (A) d, b, a, c, e
Explanation
Process costing follows a standardized five-step sequence to determine unit costs and assign total production expenditures across completed units and ending inventory.

d, b, a, c, e

Step 1: Summarize the flow of physical units of output (d)

Step 2: Compute output in terms of equivalent units (b)

Step 3: Summarize total costs to account for (a)

Step 4: Compute cost per equivalent unit (c)

Step 5: Assign total costs to units completed and to units in ending work in process (e)
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Question 13
An agent is personally liable to third parties in which of the following situations?

a) If an agent acts for an undisclosed Principal
b) Trade usage and customs makes agent personally liable
c) If an agent signs a contract in Principal's name
d) If an agent acts for the named Principal
e) If an agent works for a foreign Principal

Choose the correct answer from the options given below:
1. Aa, b and c only
2. Ba, b and e only
3. Cc, d and e only
4. Db, c and d only
Answer: (B) a, b and e only
Explanation
Under Section 230 of the Indian Contract Act, 1872, an agent cannot personally enforce or be bound by contracts entered into on behalf of a disclosed principal, unless a contract to the contrary exists. The law presumes personal liability in specific statutory exceptions:

Undisclosed principal (a) — where the agent does not disclose the existence or identity of the principal.

Trade usage and custom (b) — where prevailing commercial customs hold the agent personally liable.

Foreign principal (e) — where the contract is made for the sale or purchase of goods for a merchant residing abroad.

In contrast, signing in the principal's name (c) or acting for a named principal (d) binds only the principal, shielding the agent from personal liability.

Therefore, the agent is personally liable in situations a, b, and e.
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Question 14
Which of the following form of market organization is the most prevalent in the manufacturing sector?
1. APerfect competition
2. BMonopolistic competition
3. COligopoly
4. DDuopoly
Answer: (C) Oligopoly
Explanation
Modern manufacturing industries, including automobiles, basic metals, consumer electronics, cement, and chemicals, are characterized by heavy capital investments, significant economies of scale, and strategic interdependence among a limited group of major corporations. This market structure represents an oligopoly.

A. Perfect competition — requires homogeneous goods and numerous small producers with free entry, which is rare in heavy manufacturing.

B. Monopolistic competition — dominates retail services and local light trades rather than capital-intensive heavy manufacturing.

C. Oligopoly — correct. A small number of large firms account for the vast majority of industrial output and compete through non-price strategic differentiation.

D. Duopoly — refers strictly to a two-firm market, which is a special restricted subset rather than the general manufacturing norm.
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Question 15

Match List I with List II:

List I (Retail Store Format)	List II (Product Assortment)
A. Discount	I. Very narrow and deep
B. Specialty	II. Broad and shallow
C. Category Killer	III. Broad and deep
D. Super marketer	IV. Narrow and very deep

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

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

Explanation

Retail store formats are classified by the breadth and depth of their product assortments.

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

A. Discount store (II) — carries a broad variety of general product categories with shallow product lines at low margins.
B. Specialty store (I) — concentrates on a narrow merchandise category with substantial depth in styling and sizes.
C. Category Killer (IV) — represents an oversized specialty format offering an exceptionally narrow category with immense, exhaustive depth.
D. Super marketer / Supermarket (III) — stocks a broad assortment of groceries, food, and household lines with considerable depth.

Question 16
'A' sells a mobile phone to 'B', a minor, who pays for it by his cheque. 'A' endorses the cheque to 'C' who takes it in good faith and for value. The cheque is dishonored on presentation. Can 'C' enforce payment of the cheque?
1. AC can enforce the payment of cheque only against A
2. BC can enforce the payment of cheque either against A or B
3. CC can enforce payment of cheque both against A and B
4. DC can enforce the payment of cheque only against B
Answer: (A) C can enforce the payment of cheque only against A
Explanation
Under Section 26 of the Negotiable Instruments Act, 1881, a minor may draw, endorse, deliver, and negotiate a negotiable instrument so as to bind all parties except himself.

A minor's contract is void ab initio under Indian law, meaning minor B incurs zero personal liability on the cheque.

However, the endorsement and negotiation of the instrument by adult party A remains fully valid and legally binding on A.

Therefore, holder in due course C can enforce payment of the dishonored cheque exclusively against adult endorser A.
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Question 17
Arrange the following advance payment of tax in ascending order (Section 207 to section 211) of the Income Tax Act, 1961:

a) Instalment of advance tax and due date
b) Liability for payment of Advance Tax
c) Payment of advance tax by the assesse on own record
d) Condition of liability to pay advance tax
e) Computation of advance tax

Choose the correct answer from the options given below:
1. Aa, b, c, d, e
2. Bb, d, e, c, a
3. Cb, d, e, a, c
4. Dc, d, e, a, b
Answer: (B) b, d, e, c, a
Explanation
The advance tax provisions in Chapter XVII-C of the Income Tax Act, 1961 are arranged sequentially by section numbers 207 through 211.

b, d, e, c, a

Section 207: Liability for payment of advance tax (b)

Section 208: Conditions of liability to pay advance tax (d)

Section 209: Computation of advance tax (e)

Section 210: Payment of advance tax by the assessee on own accord or on notice (c)

Section 211: Instalments of advance tax and due dates (a)
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Question 18
Sequence the following steps in the operational functioning of the Asset reconstruction companies (as per SARFAESI Act, 2002):

a) Charge a 2 percent management fee
b) Issue security receipts to bank
c) Make payment to bank
d) Buys loans of bank at a discount
e) Carry out the recovery

Choose the correct answer from the options given below:
1. Ad, c, a, e, b
2. Bd, b, e, a, c
3. Cd, b, c, e, a
4. Dd, a, b, e, c
Answer: (C) d, b, c, e, a
Explanation
Asset Reconstruction Companies (ARCs) acquire and resolve non-performing assets under the SARFAESI Act, 2002 through a systematic operating process.

d, b, c, e, a

Step 1: Acquires or buys non-performing loans of banks at a negotiated discount (d)

Step 2: Issues security receipts (SRs) backed by the acquired financial assets to the selling bank (b)

Step 3: Makes upfront cash payment or initial tranche consideration to the selling bank (c)

Step 4: Carries out debt restructuring, settlement, or asset liquidation to recover proceeds (e)

Step 5: Charges an ongoing management fee (typically around 2 percent) for administering the trust assets (a)
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Question 19
Which of the following are the reason for manufacturers and retailers to brand their offerings?

a) Helps to gauge the level of product quality
b) Enables premium pricing
c) Contributes to corporate identity programmes
d) Inform about the source of a product
e) Develops customer loyalty

Choose the most appropriate answer from the options given below:
1. Aa, b, c and e only
2. Bb, c and e only
3. Ca, b, c and d only
4. Da, d and e only
Answer: (A) a, b, c and e only
Explanation
Branding offers distinct strategic advantages to manufacturers and retailers by differentiating products and building competitive advantage.

Gauges product quality (a) — provides a quality benchmark that signals high standards to trade channels and buyers.

Enables premium pricing (b) — established brand equity allows sellers to command higher price points and superior margins.

Corporate identity programmes (c) — reinforces overarching corporate stature and marketing communications.

Develops customer loyalty (e) — creates emotional affinity and repeat purchase patterns among consumers.

Informing consumers about the source of a product (d) is primarily an identification function for buyers rather than a strategic business motive for sellers.

Therefore, reasons a, b, c, and e constitute the primary business objectives for branding.
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Question 20
Empirical studies show that the long run average cost (LAC) curve is:
1. AL-shaped
2. BU-shaped
3. CS-shaped
4. DV-shaped
Answer: (A) L-shaped
Explanation
Extensive empirical research conducted by modern industrial economists (including Bain, Wiles, and Andrews) reveals that the long-run average cost curve is typically L-shaped rather than U-shaped.

In the initial production range, rapid technical, managerial, and purchasing economies of scale cause average costs to decline steeply until the minimum efficient scale is attained.

Beyond this scale, modern managerial decentralization and modular plant expansions allow production to expand over a wide output range at roughly constant unit costs without encountering sharp diseconomies.

Classical microeconomic theory assumed a U-shaped curve based on hypothetical managerial bottlenecks, which empirical evidence disproves.
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Question 21
Which of the following are the disadvantage of straight salary sales compensation plan?

a) Sales volume is emphasized over profits
b) Sales representative may overstock the customer
c) Low motivational impact
d) Difficult to attract or retain top sales performers
e) Sales representative may focus on products that require least effort to sell

Choose the most appropriate answer from the options given below:
1. Ac, d and e only
2. Ba, b and c only
3. Cb, d and e only
4. Da, c and d only
Answer: (A) c, d and e only
Explanation
A straight salary compensation plan provides sales personnel with a fixed income irrespective of their individual sales volume.

Low motivational impact (c) — because compensation is decoupled from direct sales performance, aggressive selling effort is not financially incentivized.

Difficult to attract or retain top performers (d) — high-performing sales representatives who can earn higher commission elsewhere tend to leave.

Focus on low-effort products (e) — without commission incentives on difficult or new strategic lines, representatives gravitate toward products that require minimal selling effort.

In contrast, emphasizing volume over profits (a) and overstocking customers (b) are classic disadvantages of aggressive commission plans, not fixed salary plans.

Thus, statements c, d, and e represent the disadvantages of straight salary compensation.
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Question 22
Given below are two statements:

Statement I: The only purpose of logistics management is to coordinate activities of moving products from the factory to customers.
Statement II: Logistics management is only the responsibility of marketing function.

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: (B) Both Statement I and Statement II are incorrect
Explanation
Logistics management encompasses the comprehensive planning and control of material, inventory, and information flows across the supply chain.

Statement I is incorrect because logistics coordinates inbound transportation from vendors, intra-plant handling, inventory storage, reverse logistics, and information systems, rather than exclusively moving finished products to end buyers.

Statement II is incorrect because logistics is an enterprise-wide supply chain function that integrates procurement, operations, manufacturing, and inventory management alongside marketing.

Therefore, both Statement I and Statement II are incorrect.
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Question 23
Which one of the advertising planning strategies is suitable for cars and appliance?
1. AInformative strategy
2. BAffective strategy
3. CHabitual strategy
4. DSatisfaction strategy
Answer: (A) Informative strategy
Explanation
Under the Foote, Cone & Belding (FCB) advertising grid, consumer product categories are classified along two dimensions: involvement level and thinking versus feeling.

Informative strategy (A) — matches High Involvement / Thinking purchases. Major capital investments such as automobiles and consumer durables require factual performance data, warranty details, and technical specifications (Learn -> Feel -> Do).

Affective strategy (B) — suits High Involvement / Feeling purchases such as luxury jewelry or perfumes, where emotional imagery dominates.

Habitual strategy (C) — applies to Low Involvement / Thinking convenience commodities such as household detergents.

Satisfaction strategy (D) — targets Low Involvement / Feeling discretionary impulse items like snacks and beverages.
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Question 24
Which of the following are skills and capabilities related competencies?

a) Analysis
b) Intellectual curiosity
c) Organization
d) Problem solving
e) Ownership of assignments

Choose the most appropriate answer from the options given below:
1. Aa, c and d only
2. Ba, b and c only
3. Cb, c and d only
4. Da, d and e only
Answer: (A) a, c and d only
Explanation
In human resource competency modeling, competencies are distinguished into cognitive skills and capabilities versus personality traits and attitudes.

Analysis (a), Organization (c), and Problem solving (d) are functional and cognitive capabilities that represent learned operational proficiencies.

Intellectual curiosity (b) and Ownership of assignments (e) are personal traits, values, and motivational dispositions.

Therefore, items a, c, and d only are classified as skills and capabilities related competencies.
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Question 25
Experimental treatment in research design signifies which of the following?
1. ASelection of dependent variable
2. BManipulating independent variable
3. CSelection of independent variable
4. DManipulating dependent variable
Answer: (B) Manipulating independent variable
Explanation
In experimental research methodology, an experimental treatment (or experimental manipulation) refers to the specific intervention or varying condition deliberately applied by the researcher to the independent variable to observe its subsequent causal effect on the dependent outcome.

A. Selection of dependent variable — is a measurement design decision rather than the experimental treatment itself.

B. Manipulating independent variable — correct. Introducing experimental levels to the independent variable constitutes the treatment.

C. Selection of independent variable — identifies the hypothetical causal factor prior to experimental manipulation.

D. Manipulating dependent variable — incorrect. The dependent variable is measured and observed, never directly manipulated by the experimenter.
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Question 26
Which of the following are considered as supply factors affecting the flow of Foreign Direct Investment (FDI)?

a) Customer Access
b) Economic Priorities
c) Resource Availability
d) Avoidance of Trade Barrier
e) Logistics

Choose the most appropriate answer from the options given below:
1. Aa and b only
2. Bb and d only
3. Cc and e only
4. Da and e only
Answer: (C) c and e only
Explanation
In international trade and foreign investment theory, determinants of FDI are classified into demand factors, supply/cost factors, and regulatory/political factors.

Resource Availability (c) — supply-seeking FDI targets low-cost raw materials, specialized labor, and natural endowments in the host nation.

Logistics (e) — transport infrastructure and distribution efficiency govern input-handling and freight costs in global manufacturing.

Customer access (a) and avoidance of trade barriers (d) are demand-seeking motives aimed at capturing host market demand.

Therefore, only resource availability and logistics (c and e) represent supply factors.
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Question 27

Match List I with List II:

List I	List II
A. Study all aspects of Electronic fund transfer (EFT)	I. Rashid Jilani Committee (1992)
B. Working group on NBFCs	II. Sodhani Committee (1995)
C. Suggest alternate methods of lending	III. Khanna Committee (1995)
D. Expert group on foreign exchange markets	IV. Shere Committee (1995)

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

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

Explanation

Reserve Bank of India advisory and working committees shaped Indian banking, payments, and foreign exchange reforms.

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

A. Electronic fund transfer (IV) — examined by the K.S. Shere Committee (1995) to create the regulatory architecture for EFT systems.
B. Working group on NBFCs (III) — assessed regulatory supervisory frameworks for non-banking financial companies (1995).
C. Alternate methods of lending (I) — evaluated by the Rashid Jilani Committee (1992) to reform the cash-credit system and bank lending methods.
D. Expert group on foreign exchange markets (II) — led by O.P. Sodhani (1995) to develop depth and liquidity in Indian forex markets.

Question 28
The application for information is rejected under the Right to Information Act, 2005. The CPIO/SPIO is obligated to furnish which of the following to the person seeking the information?

a) Power and functions of information commission
b) Reason for such rejection
c) Obligation of public authorities
d) The particulars of the appellate authority
e) The period within which an appeal against such rejection may be preferred

Choose the correct answer from the options given below:
1. Ab and c only
2. Bb, c and d only
3. Ca, c and e only
4. Db, d and e only
Answer: (D) b, d and e only
Explanation
Under Section 7(8) of the Right to Information Act, 2005, where a request for information is rejected, the Central Public Information Officer (CPIO) or State Public Information Officer (SPIO) must communicate specific statutory details to the applicant.

The specific reasons for such rejection (b)

The particulars of the designated appellate authority (d)

The period within which an appeal against the rejection order may be filed (e)

Neither the institutional obligations of public authorities under Section 4 (c) nor the broad statutory powers of Information Commissions (a) are mandated disclosures in a rejection notice.

Therefore, the CPIO/SPIO is obligated to communicate items b, d, and e only.
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Question 29
X was appointed on 1 July 2022 as a lecturer in a University. He continued on 30 April 2023. What would be the duration of the previous year for the assessment year 2023-24 for computation of income under the head Salary?
1. A1 July 2022 to 30 April 2023
2. B1 April 2022 to 31 March 2023
3. C1 April 2022 to 30 April 2023
4. D1 July 2022 to 31 March 2023
Answer: (D) 1 July 2022 to 31 March 2023
Explanation
Under Section 3 of the Income Tax Act, 1961, the previous year is ordinarily the financial year immediately preceding the assessment year.

In the case of a new source of income coming into existence during the financial year, the previous year commences on the exact date on which the source arises and terminates on the immediately following 31st March.

Because X was appointed on 1 July 2022, his salary source originated on 1 July 2022.

For Assessment Year 2023-24, the previous year ends on 31 March 2023.

Consequently, the previous year spans from 1 July 2022 to 31 March 2023.
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Question 30
In case of presence of outliers in a data set, which of the following can better measure the central tendency?

a) Mode
b) Trimmed Mean
c) Arithmetic Mean
d) Median
e) Harmonic Mean

Choose the correct answer from the options given below:
1. Aa and b only
2. Bb and c only
3. Cc and e only
4. Db and d only
Answer: (D) b and d only
Explanation
Extreme values or outliers heavily distort algebraic means including the arithmetic mean and harmonic mean.

Median (d) — is a positional average that depends solely on the middle value of ordered data, making it resistant to extreme tail outliers.

Trimmed Mean (b) — discards a fixed percentage of extreme observations from both ends of the distribution before averaging, producing a robust measure of location.

Arithmetic mean (c) and harmonic mean (e) change dramatically in the presence of extreme observations.

Therefore, the trimmed mean and median (b and d) best measure central tendency when outliers exist.
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Question 31
The assumptions of Purchasing Power Parity theory include:

a) No costs for converting one currency to another
b) No restrictions on the movement of capital between countries
c) No restrictions on the movement of commodities between countries
d) No transaction costs for buying and selling financial security
e) No transportation costs for transporting a commodity from one country to another

Choose the most appropriate answer from the options given below:
1. Aa, b and c only
2. Bb, d and c only
3. Ce, a and c only
4. Dd, a and e only
Answer: (C) e, a and c only
Explanation
Purchasing Power Parity theory relies on the international Law of One Price governing physical merchandise trade.

No transportation costs (e) — goods can be shipped internationally without transport freight altering parity prices.

No conversion costs (a) — currencies can be exchanged without transaction fees or spreads.

No restrictions on commodity trade (c) — markets operate without tariffs, quotas, or trade embargoes.

Capital mobility (b) and financial security trading costs (d) are assumptions of Interest Rate Parity, not commodity-based PPP.

Thus, assumptions e, a, and c establish the foundation of Purchasing Power Parity theory.
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Question 32
Arrange the following steps in a logical sequence in recourse to dishonoring a negotiable instrument:

a) Noting
b) Compensation
c) Protesting
d) Notice of dishonor
e) Penalties

Choose the correct answer from the options given below:
1. Ad, a, c, b, e
2. Bc, d, a, b, e
3. Cc, d, e, b, a
4. Da, c, d, b, e
Answer: (A) d, a, c, b, e
Explanation
Recourse upon the dishonor of a negotiable instrument follows the statutory procedure prescribed under the Negotiable Instruments Act, 1881.

d, a, c, b, e

Notice of dishonor (d) — served to prior liable parties to preserve recourse rights under Section 93

Noting (a) — recording of the dishonor on the instrument by a Notary Public under Section 99

Protesting (c) — issuance of a formal authenticated certificate of protest under Section 100

Compensation (b) — calculation and demand of the principal amount and accrued interest under Section 117

Penalties (e) — initiation of statutory penal proceedings under Section 138
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Question 33
Arrange the following goods and services in the increasing order of the underlying income elasticity of demand:

a) Normal consumption goods
b) Necessities
c) Luxuries
d) Inferior goods
e) Services

Choose the correct answer from the options given below:
1. Ad, b, a, e, c
2. Bd, c, b, a, e
3. Cc, e, b, a, d
4. Db, a, d, c, e
Answer: (A) d, b, a, e, c
Explanation
Income elasticity of demand measures the responsiveness of quantity demanded to changes in consumer income.

d, b, a, e, c

Inferior goods (d) — have negative income elasticity as demand declines with rising income

Necessities (b) — have inelastic positive elasticity between 0 and 1

Normal consumption goods (a) — have unit-proximate positive elasticity around 1

Services (e) — exhibit income elasticity greater than 1 as households expand discretionary services

Luxuries (c) — possess the highest income elasticity well above 1
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Question 34

Match List I with List II:

List I (A.T. Kearney Globalization Index)	List II (Variables)
A. Economic Integration	I. International Tourism and Travel
B. Personal Integration	II. Internet Users
C. Technological Integration	III. Foreign Direct Investment
D. Political Integration	IV. Ratification and multilateral treaties

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

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

Explanation

The A.T. Kearney Globalization Index tracks integration across nations using distinct operational dimensions.

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

A. Economic Integration (III) — measured by international trade and Foreign Direct Investment inflows and outflows.
B. Personal Integration (I) — captured by international travel, tourism, cross-border remittances, and telephone traffic.
C. Technological Integration (II) — quantified by internet users, hosts, and secure servers.
D. Political Integration (IV) — indicated by ratification of multilateral treaties and participation in international missions.

Question 35

Match List I with List II:

List I (Accounting Concept)	List II (Purpose / Applicability)
A. Going Concern Concept	I. The same accounting method used by a firm from one period to another
B. Consistency	II. Relate to the relative size or importance of an item or event
C. Cost Concept	III. An inappropriate assumption for firm undergoing bankruptcy
D. Materiality	IV. The normal basis used to account for assets

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

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

Explanation

Fundamental accounting concepts define financial reporting assumptions and measurement rules.

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

A. Going Concern Concept (III) — assumes indefinite operating life, making it an inappropriate assumption for a bankrupt firm in liquidation.
B. Consistency (I) — mandates applying identical accounting methods across successive reporting periods.
C. Cost Concept (IV) — establishes historical acquisition cost as the standard valuation basis for assets.
D. Materiality (II) — dictates disclosure based on the relative size, value, or financial significance of an item.

Question 36

Match List I with List II:

List I (Schedules under the Companies Act, 2013)	List II (Underlying themes)
A. Schedule I	I. Computation of Depreciation
B. Schedule II	II. Code for independent directors
C. Schedule III	III. Memorandum of Association
D. Schedule IV	IV. Preparation of balance sheet and statement of profit and loss

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

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

Explanation

Schedules attached to the Companies Act, 2013 prescribe statutory corporate documentation and disclosure formats.

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

A. Schedule I (III) — prescribes model forms for the Memorandum and Articles of Association (Tables A through J).
B. Schedule II (I) — defines useful lives of tangible assets for depreciation computation.
C. Schedule III (IV) — outlines general instructions for preparing the balance sheet and statement of profit and loss.
D. Schedule IV (II) — establishes the professional code of conduct for independent directors.

Question 37
On attaining the age of majority, a minor's agreement:
1. ACan be ratified by him
2. BCannot be ratified by him
3. CBecomes void
4. DBecomes valid
Answer: (B) Cannot be ratified by him
Explanation
Under Indian Contract law as settled in Mohori Bibee v. Dharmodas Ghose, an agreement entered into by a minor is void ab initio.

Because a minor's agreement is a nullity from the outset, it has no legal existence that can later be revived or validated.

Consequently, an individual cannot ratify an agreement entered into during minority upon attaining the age of majority, even with express consent.

Any valid transaction entered into after attaining majority requires fresh consideration and a completely new contractual agreement.
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Question 38
From the operational point of view, which are part of an Environmental Audit?

a) Environment Management System Audit
b) Social Audit
c) Compliance Audit
d) Site Property Audit
e) Energy Audit

Choose the correct answer from the options given below:
1. Ac, d and e only
2. Ba, c and d only
3. Cb, c and d only
4. Da, d and e only
Answer: (B) a, c and d only
Explanation
Operational environmental audits evaluate industrial sites and facility systems to determine compliance and ecological risk.

Environment Management System Audit (a) — appraises the implementation of ISO 14001 policies and operational environmental controls.

Compliance Audit (c) — verifies strict conformance with statutory pollution and emission regulations.

Site Property Audit (d) — assesses soil contamination and historical liability on industrial facilities and commercial property.

Social audit (b) examines broader community impact, while energy audit (e) is a specialized technical efficiency study.

Therefore, components a, c, and d form the core operational environmental audit framework.
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Question 39
A box-plot is a graphical summary measures of data that displays:

a) Mean
b) Q1
c) Median
d) Q3
e) Mode

Choose the correct answer from the options given below:
1. Ac and e only
2. Ba, c and e only
3. Cc, d and b only
4. Dd, b and a only
Answer: (C) c, d and b only
Explanation
A box-plot visually presents the Five-Number Summary of a continuous distribution.

The central components plotted are the lower quartile Q1 (b), the median (c), and the upper quartile Q3 (d).

The endpoints of the whiskers represent the minimum and maximum data values within range.

The arithmetic mean and mode are not standard structural elements of a box-plot visual display.

Therefore, the box-plot displays Q1, median, and Q3 (c, d, and b).
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Question 40
Who was of the opinion that labor was 'the father of wealth' and it must be included in any estimate of national wealth?
1. AWilliam Far
2. BWilliam Petty
3. CWilliam C. Pyle
4. DFlamholtz
Answer: (B) William Petty
Explanation
Sir William Petty (1623–1687) formulated early concepts of human capital and national wealth accounting.

In his Treatise of Taxes and Contributions (1662), Petty declared that labor is the father and active principle of wealth, as lands are the mother.

Petty was the first classical thinker to capitalize human earning power to incorporate labor into estimates of national wealth.

William C. Pyle and Eric Flamholtz pioneered modern human resource accounting in the twentieth century, not the classical seventeenth-century maxim.
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Question 41
In the process of perception, which one of the following is not an external factor influencing selection of stimuli?
1. AExperience
2. BFamiliarity
3. CRepetition
4. DNovelty
Answer: (A) Experience
Explanation
Perceptual selectivity is governed by external stimulus characteristics and internal perceiver factors.

Experience (A) — is an internal psychological factor rooted in an individual's personal memory, learning history, and cognitive background.

Familiarity (B), Repetition (C), and Novelty (D) — are external physical properties of the sensory stimulus that draw attention.

Therefore, past experience is an internal perceiver attribute rather than an external stimulus factor.
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Question 42
As suggested by Collins, arrange the following leadership levels in sequentially higher order:

a) The leader is a competent manager
b) The leader is an executive
c) The leader is a highly capable individual
d) The leader is an effective leader
e) The leader is a contributing team member

Choose the correct answer from the options given below:
1. Ab, c, d, a, e
2. Bc, e, a, d, b
3. Cc, a, e, d, b
4. Dc, e, a, b, d
Answer: (B) c, e, a, d, b
Explanation
Jim Collins established the Level 5 Leadership hierarchy in Good to Great to illustrate the progressive stages of organizational leadership capability.

c, e, a, d, b

Level 1: Highly Capable Individual (c) — contributes productive talent and skills

Level 2: Contributing Team Member (e) — works effectively with others in group settings

Level 3: Competent Manager (a) — organizes people and resources toward predetermined objectives

Level 4: Effective Leader (d) — catalyzes commitment to a compelling vision and high standards

Level 5: Executive (b) — builds enduring greatness through a blend of personal humility and professional will
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Question 43
Substitution effect is usually larger than the income effect in real world because:
1. AConsumer usually spends only a small proportion of income on any one commodity
2. BConsumer often consumes a small number of commodities
3. CConsumer only spends small portion of income on consumption
4. DConsumer income is relatively smaller in relation to the consumption
Answer: (A) Consumer usually spends only a small proportion of income on any one commodity
Explanation
The Slutsky and Hicks price decomposition separates the total price effect into substitution and income effects.

The substitution effect measures how consumers switch toward relatively cheaper alternatives when price changes.

The income effect reflects the change in real purchasing power caused by the price adjustment.

In realistic consumption bundles, households spend a very small fraction of their total budget on any individual product, rendering the real-income impact negligible relative to price substitution.
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Question 44
Which one group of the following countries are members of ASEAN?
1. ALaos, Cambodia, Brunei
2. BMalaysia, Thailand, Taiwan
3. CMyanmar, Singapore, Hong Kong
4. DFiji, Laos, Cambodia
Answer: (A) Laos, Cambodia, Brunei
Explanation
The Association of Southeast Asian Nations (ASEAN) comprises ten sovereign Southeast Asian nations: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

A. Laos, Cambodia, Brunei — correct. All three nations are full member states of ASEAN.

B. Malaysia, Thailand, Taiwan — incorrect. Taiwan is not an ASEAN member.

C. Myanmar, Singapore, Hong Kong — incorrect. Hong Kong is not a sovereign ASEAN member.

D. Fiji, Laos, Cambodia — incorrect. Fiji is an island nation in Melanesia, not Southeast Asia.
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Question 45
Which one of the following values is not a part of OCTAPACE framework?
1. AOpenness
2. BExtension
3. CProactivity
4. DAutonomy
Answer: (B) Extension
Explanation
The OCTAPACE framework developed by Udai Pareek defines eight core organizational culture values essential for climate building.

O: Openness

C: Confrontation

T: Trust

A: Authenticity

P: Proaction or Proactivity

A: Autonomy

C: Collaboration

E: Experimentation

Extension is a dimension in motivational profile frameworks rather than an element of the OCTAPACE cultural values.
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Question 46
When the income of a minor child is clubbed with the income of mother or father, how much deduction will be allowed to mother or father?
1. ARs. 1500
2. BRs. 2000
3. CActual income clubbed with the income of mother or father, whichever is less
4. DNo deduction
Answer: (A) Rs. 1500
Explanation
Under Section 10(32) of the Income Tax Act, 1961, when income of a minor child is clubbed in the hands of either parent under Section 64(1A), the parent receives statutory relief.

The parent is entitled to an exemption equal to the actual clubbed income or Rs. 1,500 per minor child, whichever is less.

If the clubbed income exceeds Rs. 1,500, the maximum allowable statutory deduction per child is capped at Rs. 1,500.
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Question 47
For customers, which are the areas of ethical and social responsibility concerns?

a) Product safety
b) Fair Price
c) Fair Wages
d) TQM
e) Proper disclosures and information

Choose the correct answer from the options given below:
1. Ac and d only
2. Bc, d and e only
3. Ca and e only
4. Da, b and e only
Answer: (D) a, b and e only
Explanation
Corporate social responsibility defines distinct ethical obligations tailored to specific stakeholder groups.

Product safety (a) — ensures products do not cause physical harm or health hazards to buyers.

Fair Price (b) — prevents price exploitation, cartel markups, and gouging.

Proper disclosures and information (e) — guarantees truthful labeling, clear warnings, and transparent terms.

Fair wages (c) is an ethical duty owed to employees, and TQM (d) is an internal operations philosophy.

Thus, items a, b, and e represent the ethical responsibilities owed directly to customers.
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Question 48
Under which of the following market structures, products are differentiated and close substitutes?

a) Perfect competition
b) Monopolistic competition
c) Oligopoly
d) Duopoly
e) Monopoly

Choose the correct answer from the options given below:
1. Aa, b and c only
2. Bb, c and d only
3. Cc, d and e only
4. Da, c and d only
Answer: (B) b, c and d only
Explanation
Product differentiation occurs when competing firms produce items that satisfy identical consumer needs but differ by branding, packaging, design, or perceived quality.

Monopolistic competition (b) — numerous sellers market branded, highly differentiated close substitutes.

Oligopoly (c) — dominant firms frequently engage in non-price product differentiation with close cross-elasticity.

Duopoly (d) — two market-dominating rivals offer differentiated substitute products.

In perfect competition (a), goods are perfectly homogeneous, and in pure monopoly (e), no close substitutes exist.

Therefore, market structures b, c, and d feature differentiated close substitutes.
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Question 49

Match List I with List II:

List I (Motive of human behavior in organizations)	List II (Characteristic)
A. Achievement	I. Concern for others
B. Control	II. Concern for self-development
C. Extension	III. Concern for excellence
D. Dependency	IV. Concern for orderliness

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

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

Explanation

Udai Pareek identified key behavioral motives that influence interpersonal dynamics and management behavior within organizations.

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

A. Achievement (III) — characterized by a persistent concern for excellence, personal challenge, and high performance.
B. Control (IV) — characterized by a concern for orderliness, monitoring, discipline, and authority.
C. Extension (I) — characterized by a concern for others, social relevance, and helping colleagues grow.
D. Dependency (II) — characterized by seeking external structure, mentoring, and support for self-development.

Question 50
A point estimator is said to be consistent when:
1. AIt has smaller standard error
2. BIts expected value is equal to the population parameter
3. CIt tends to become closer to the population parameter as the sample size becomes larger
4. DIt is based on all available information
Answer: (C) It tends to become closer to the population parameter as the sample size becomes larger
Explanation
In statistical estimation theory, a point estimator is consistent if it converges in probability to the true population parameter as sample size increases.

As the sample size n approaches infinity, the sampling distribution collapses around the parameter, making estimation error approach zero.

Smaller standard error defines statistical efficiency rather than consistency.

Expected value equal to the true parameter defines an unbiased estimator.

Utilizing all available sample data defines a sufficient statistic.
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Question 51
In case of two variables, the estimated regression equation is y = 60 + 5x. The total sum of squares is 15730 and sum of square due to error is 1530. The estimated regression line based on this information is a:
1. APoorest fit
2. BModerate fit
3. CGood fit
4. DBest fit
Answer: (C) Good fit
Explanation
The goodness of fit of a linear regression model is evaluated using the coefficient of determination (R-squared).

Formula:
R^2 = 1 - (SSE / SST)

Calculation:
R^2 = 1 - (1530 / 15730) = 1 - 0.0973 = 0.9027

An R-squared value of approximately 90.3% indicates that over 90 percent of the total variation in the dependent variable is explained by the independent variable, establishing that the estimated regression line represents a good fit.
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Question 52
The doctrine of 'Caveat emptor' applies in which of the following situations?
1. AWhen goods are sold by description
2. BWhen goods are sold by sample
3. CWhen goods are sold under implied conditions and warranties
4. DWhen the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment
Answer: (D) When the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment
Explanation
Under Section 16 of the Sale of Goods Act, 1930, the rule of caveat emptor (let the buyer beware) establishes that the seller is not bound to supply goods suitable for any specific purpose unless that purpose was communicated to the seller.

D. Buyer does not intimate purpose — correct. When the buyer examines the goods and relies entirely on their own skill and judgment, caveat emptor applies fully.

A. Sold by description — incorrect. Sale by description creates an implied condition of merchantability under Section 15.

B. Sold by sample — incorrect. Sale by sample creates an implied condition under Section 17 that bulk corresponds with sample.

C. Implied conditions and warranties — incorrect. Implied terms protect the buyer and represent statutory exceptions to caveat emptor.
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Question 53
In totalitarianism, called authoritarianism, individual freedom is subordinated to the power of the authority of a group or state. Which of the following is not a type of totalitarianism?
1. ATheocratic
2. BRight Wing
3. CTribal
4. DConservative
Answer: (D) Conservative
Explanation
In international business and political systems, political structures are categorized into democratic versus totalitarian governance.

Recognized categories of totalitarianism include Theocratic (rule by religious leadership), Tribal (rule by a dominant ethnic tribe), Communist/Left-wing, and Right-wing (military or fascist regimes that restrict political liberty while maintaining private property).

Conservative is a standard democratic political philosophy centered on tradition and limited state intervention, not an institutional form of totalitarian regime.
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Question 54

Match List I with List II:

List I (Technique)	List II (Feature)
A. Pooling	I. Setting up production facilities in a number of countries
B. Financial hedge	II. Reduction of Foreign exchange risk through leading and lagging
C. Natural hedge	III. Simultaneous borrowing and lending in two different currencies
D. Netting	IV. Holding and managing of cash by the affiliates

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

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

Explanation

Multinational corporations employ operational and financial mechanisms to manage foreign exchange exposure and liquidity.

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

A. Pooling (IV) — aggregates cash balances from international affiliates into centralized accounts for corporate cash management.
B. Financial hedge (III) — hedges balance sheet exposure through simultaneous borrowing and lending in two different currencies.
C. Natural hedge (I) — aligns currency cash flows operationally by establishing production facilities across target sales markets.
D. Netting (II) — offsets cross-border intracompany receivables and payables, complemented by leading and lagging payment schedules.

Question 55
The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call is known as:
1. AApproach
2. BProspecting
3. CPre-approach
4. DPresentation
Answer: (C) Pre-approach
Explanation
The personal selling process comprises a structured progression of professional sales steps.

Pre-approach (C) — correct. The salesperson conducts background research on the prospective buyer, their industry, credit standing, and specific needs prior to direct contact.

Approach (A) — the initial face-to-face or virtual greeting where the salesperson establishes rapport.

Prospecting (B) — identifying and screening qualified prospective leads.

Presentation (D) — demonstrating product value and explaining solutions to the client.
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Question 56
Which of the interventions can be used to manage the anxiety created by mergers and acquisitions?

a) Speed-up of the integration process
b) Articulate a new vision, common goals and organizational symbols
c) Employee counselling and stress management training
d) Disengage efforts such as termination ceremonies
e) Social support from spouse, friends, supervisors and coworkers

Choose the most appropriate answer from the options given below:
1. AA, B and C only
2. BB, C and D only
3. CA, C and E only
4. DA, B and E only
Answer: (B) B, C and D only
Explanation
Organizational psychologists Marks and Mirvis identified specific organizational interventions to manage employee anxiety during corporate mergers and acquisitions.

Articulate a new vision and shared symbols (b) — provides cognitive clarity and rebuilds organizational identity.

Employee counselling and stress management (c) — equips personnel with active coping strategies during structural disruption.

Disengagement rituals such as termination ceremonies (d) — formally acknowledges organizational loss, allowing staff to let go of old corporate attachments.

Therefore, interventions b, c, and d form the established organizational framework for post-merger stress management.
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Question 57
Which one of the following normative ethical theories has 'Net benefit from the decision' as consideration in ethical decision making?
1. AEthics of duty
2. BTheory of justice
3. CStock holder ethics
4. DUtilitarianism
Answer: (D) Utilitarianism
Explanation
Utilitarianism, pioneered by Jeremy Bentham and John Stuart Mill, evaluates the morality of actions based entirely on their consequences.

The fundamental principle dictates choosing the course of action that maximizes net utility — producing the greatest aggregate net benefit over harm for all affected stakeholders.

Ethics of duty (deontology) relies on universal moral duties irrespective of outcome.

Theory of justice prioritizes equitable distribution of rights and resources.

Stockholder ethics focuses narrowly on legal shareholder returns.
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Question 58
The practice of setting a price target by the firm and then developing a product that would allow the firm to maximize total profits at that price is called:
1. APrestige pricing
2. BPrice lining
3. CPrice matching
4. DValue pricing
Answer: (D) Value pricing
Explanation
In strategic marketing, target-costing and value pricing involve establishing a predetermined price point that customers will pay, then designing product specifications and production processes to achieve targeted margins.

Value pricing (D) — adjusts product design, features, and cost structures to deliver high perceived value while hitting target profitability.

Price lining (B) — sets fixed discrete price tiers across a product line, such as budget, standard, and premium models.

Prestige pricing (A) — charges high prices to convey exclusivity and luxury status.

Price matching (C) — benchmarks pricing directly against competitor price quotes.
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Question 59
The Competition (Amendment) Act, 2023 revamped the Competition Act in which of the following perspectives:

a) The CCI needs to be intimated if the value of merger and acquisition deal exceeds Rs. 2000 crores
b) The overall timeline for assessment of combination has been reduced to 150 days from 210 days
c) 'Exclusive selling agreements' has been replaced with 'exclusive dealing Agreement'
d) Entities who are not engaged in identical or similar trade shall also be part of an Anti-competitive Agreement under Section 3(3) of the Act
e) Anti-competitive conduct like 'tie-up arrangements' 're-sale price Maintenance' and 'exclusive distribution agreement' have been redefined

Choose the correct answer from the options given below:
1. Aa, b and c only
2. Bc and e only
3. Ca, b, c and d only
4. Da, b, c, d and e
Answer: (D) a, b, c, d and e
Explanation
The Competition (Amendment) Act, 2023 introduced extensive modernizations to Indian competition law.

Deal Value Threshold of Rs. 2,000 crores introduced for combination notifications (a)

Assessment timeline for combinations reduced from 210 to 150 days (b)

Replaced exclusive selling agreements with exclusive dealing agreements (c)

Expanded Section 3(3) to include facilitators and non-competing entities in hub-and-spoke cartels (d)

Redefined vertical restraints including tie-in arrangements and resale price maintenance (e)

Therefore, all five perspectives (a, b, c, d, and e) were enacted under the 2023 amendment.
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Question 60
Which of the following describe an intervention currency?
1. AThe currency in which exporter choose to invoice their exports
2. BThe currency in which cross-border transactions are paid for and closed
3. CThe currency in terms of which a domestic currency is quoted
4. DThe vehicle currency
Answer: (C) The currency in terms of which a domestic currency is quoted
Explanation
In foreign exchange and central banking mechanisms, an intervention currency is the major foreign reserve currency used by monetary authorities to peg, quote, and stabilize the national currency.

Central banks maintain official quotations of the domestic currency in terms of the intervention currency and actively trade it to influence exchange rate stability.

Vehicle currency refers to a third currency utilized for international transactions between two other countries.

Invoicing currency describes the monetary denomination chosen on commercial export documentation.
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Question 61
Given below are two statements:

Statement I: Certificate of incorporation is conclusive evidence that all the requirements of the Companies Act have been complied with in respect of registration.
Statement II: After incorporation, if the company makes a fresh contract in terms of the pre-incorporation contract, the liability of the promoters shall come to an end.

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
Company incorporation law establishes clear rules regarding registration finality and pre-incorporation promoter liability.

Statement I is true because Section 9 of the Companies Act, 2013 and settled corporate jurisprudence hold that the certificate of incorporation is conclusive proof that all statutory registration formalities have been fulfilled.

Statement II is true because promoters remain personally liable on contracts entered prior to incorporation unless novation occurs — whereby the newly incorporated entity enters into a fresh contract that supersedes the prior agreement.
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Question 62
Arrange the following service gaps as per SERVQUAL approach in the logical sequence:

a) The gap between service quality specifications and service delivery
b) The gap between customer expectations and management perception
c) The gap between perceived service and expected service
d) The gap between management perception and service quality specification
e) The gap between service delivery and external communications

Choose the correct answer from the options given below:
1. Ad, a, b, e, c
2. Bb, d, a, e, c
3. Ca, c, b, d, e
4. Dc, a, b, e, d
Answer: (B) b, d, a, e, c
Explanation
Parasuraman, Zeithaml, and Berry formulated the five-gap model of service quality.

b, d, a, e, c

Gap 1: Customer expectation vs management perception (b)

Gap 2: Management perception vs service quality specifications (d)

Gap 3: Service quality specifications vs actual service delivery (a)

Gap 4: Service delivery vs external communications to consumers (e)

Gap 5: Customer perceived service vs expected service (c)
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Question 63
Which of the following are the characteristics of the Euro Currency market?

a) The euro currency market does not have geographical limits
b) The euro currency market is unregulated
c) The euro currency market does not have deposit insurance
d) There are no restriction on the maximum interest payable or chargeable
e) The euro currency market does not attract CRR and SLR restrictions

Choose the most appropriate answer from the options given below:
1. Aa, b and c only
2. Bb, e and d only
3. Ce, c and a only
4. Dd, a and e only
Answer: (B) b, e and d only
Explanation
The Eurocurrency market operates as an offshore wholesale banking network for currencies held outside their country of origin.

The market operates free from host-nation domestic regulatory supervision (b).

Interbank offshore deposits do not attract reserve ratios like Cash Reserve Ratio (CRR) or Statutory Liquidity Ratio (SLR) (e).

Interest rates fluctuate freely based on international interbank demand without administrative interest rate ceilings (d).

Therefore, statements b, e, and d define the core financial and regulatory characteristics of the Eurocurrency market.
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Question 64
The Directorate General of Foreign Trade (DGFT) facilitates and promotes foreign trade in India and also implements the foreign trade policy of India. Which of the following union ministry governs the DGFT?
1. AMinistry of Commerce and Industry
2. BMinistry of Science and Technology
3. CMinistry of Finance
4. DMinistry of External Affairs
Answer: (A) Ministry of Commerce and Industry
Explanation
The Directorate General of Foreign Trade (DGFT) is an attached agency under the Ministry of Commerce and Industry, Government of India.

Headed by the Director General of Foreign Trade, it regulates, facilitates, and implements the national Foreign Trade Policy.

It also issues Importer-Exporter Codes (IEC) to commercial traders across India.

The Ministry of Finance oversees taxation and customs duties, while External Affairs manages diplomatic relations.
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Question 65

Match List I with List II:

List I (Herfindahl Index Value)	List II (Market Type)
A. Zero	I. Oligopoly with high risk of cartels
B. 0-1,000	II. Oligopoly
C. 1,000 - 1,800	III. Monopolistic competition
D. 1,800 - 10,000	IV. Extremely competitive market

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

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

Explanation

The Herfindahl-Hirschman Index (HHI) quantifies market concentration and antitrust risk by summing the squared market shares of all firms.

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

A. Zero (IV) — represents an atomistic, extremely competitive market with infinitesimal firm shares.
B. 0 to 1,000 (III) — indicates an unconcentrated market characteristic of monopolistic competition.
C. 1,000 to 1,800 (II) — reflects moderate concentration characteristic of an oligopoly.
D. 1,800 to 10,000 (I) — denotes high market concentration with elevated risk of cartel formation.

Question 66
Which of the following cause demand of a product to increase?

a) An increase in consumer's income
b) An increase in the prices of substitutes
c) An increase in the price of complements
d) An increase in the number of substitutes
e) An increased taste for the commodity

Choose the correct answer from the options given below:
1. Aa, b and c only
2. Bc, d and e only
3. Cb, d and e only
4. Da, b and e only
Answer: (D) a, b and e only
Explanation
Shifts in consumer demand curves are driven by changes in non-price determinants.

Increase in consumer income (a) — expands purchasing power, increasing demand for normal goods.

Higher price of substitutes (b) — diverts consumers toward the cheaper product, raising its demand.

Favorable taste preference (e) — boosts consumer willingness to purchase at every price.

Higher prices of complementary goods (c) decrease demand, and an increase in substitute products (d) draws buyers away.

Therefore, factors a, b, and e cause market demand to increase.
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Question 67
Assertion (A): When a partner retires, all the assets and liabilities are revalued according to current value.
Reason (R): The balance sheet should show the correct values of assets and liabilities.
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: (B) Both A and R are correct but R is not the correct explanation of A
Explanation
Partnership reconstitution rules mandate revaluation of firm assets and liabilities upon the departure of a partner.

Assertion (A) is correct because revaluation ensures that accumulated unrecorded gains or losses up to the retirement date are distributed fairly among all partners according to their profit-sharing ratio.

Reason (R) is correct because accounting conventions require the balance sheet of the reconstituted firm to reflect true and fair asset values.

Reason (R) is not the causal explanation of (A) because revaluation is performed to achieve equitable capital settlement with the retiring partner rather than solely for balance sheet presentation.
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Question 68
Which are the appropriate tax planning perspectives in case of shut down or continue decision under Income Tax Act, 1961?

a) Business loss and unabsorbed depreciation can be carry forward and set off against profit and gain
b) The loss making company and profit making company may merge to avail the tax benefit
c) Tax benefit of deduction u/s 33 AB and 115 VT may be withdrawn and liable to tax for the year in which business is discontinued
d) The condition of section 80 IB / 80 IC of the Act, a deduction is allowed to Such undertaking
e) If a person has more than one business, the loss making business may not be discontinued

Choose the most appropriate answer from the options given below:
1. Aa, c and d only
2. Bb, d and e only
3. Cc, d and e only
4. Da, c and e only
Answer: (D) a, c and e only
Explanation
Corporate tax planning evaluates the tax consequences of closing versus continuing an unprofitable business unit.

Continuing business operations preserves the right to carry forward accumulated business losses under Section 72 and unabsorbed depreciation under Section 32(2) (a).

Discontinuing business triggers the withdrawal and taxation of special statutory deductions previously claimed under Sections 33AB and 115VT (c).

Maintaining the loss-making unit allows an assessee with multiple undertakings to set off current operating losses against profitable lines under Section 70 (e).

Therefore, perspectives a, c, and e guide the tax planning decision.
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Question 69

Match List I with List II:

List I (Non-parametric test)	List II (Parametric test)
A. Friedman Test	I. One-way ANOVA
B. Mann-Whitney U Test	II. t-test
C. Kruskal-Wallis Test	III. Paired t-test
D. Wilcoxon signed Rank Test	IV. Two-way ANOVA

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

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

Explanation

Non-parametric statistical hypothesis tests serve as distribution-free equivalents to classical parametric procedures.

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

A. Friedman Test (IV) — non-parametric alternative to Two-way ANOVA with repeated measures.
B. Mann-Whitney U Test (II) — non-parametric equivalent to the independent two-sample t-test.
C. Kruskal-Wallis Test (I) — non-parametric counterpart to One-way ANOVA for comparing three or more independent groups.
D. Wilcoxon Signed-Rank Test (III) — non-parametric equivalent to the paired samples t-test.

Question 70
According to the theory of contestable markets, vigorous competition can take place even among few sellers if:

a) Product is differentiated
b) Demand is infinitely elastic
c) Entry into the market is absolutely free
d) There are strong entry-exit barriers
e) Exit from the market is entirely costless

Choose the correct answer from the options given below:
1. Aa and d only
2. Bb and e only
3. Ca and c only
4. Dc and e only
Answer: (D) c and e only
Explanation
William Baumol's Theory of Contestable Markets demonstrates that market contestability depends on the threat of potential entry rather than the actual number of incumbent firms.

Free market entry (c) — allows external competitors to enter without legal or structural barriers if incumbents charge supranormal prices.

Costless exit (e) — ensures that no unrecoverable sunk costs trap firms, enabling hit-and-run entry.

These two conditions force oligopolists to price at average cost to avert entry, maintaining competitive discipline.

Therefore, conditions c and e are the essential requirements for contestable market behavior.
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Question 71
A population has a mean of 200 and a standard deviation of 50. Suppose a simple random sample of size 100 is selected then the probability that the sample mean will be ± 5 of the population mean is:
1. A0.7523
2. B0.6928
3. C0.9544
4. D0.6826
Answer: (D) 0.6826
Explanation
Under the Central Limit Theorem, the sampling distribution of the sample mean is normally distributed with mean equal to the population mean and standard error proportional to sample size.

Standard Error Calculation:
SE = sigma / sqrt(n) = 50 / sqrt(100) = 50 / 10 = 5

Z-score Calculation:
Z = (X_bar - mu) / SE = (+/- 5) / 5 = +/- 1

Normal Probability:
P(-1 <= Z <= 1) = 0.6826

Therefore, the probability that the sample mean falls within plus or minus 5 of the population mean is 0.6826.
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Question 72
Assertion (A): By removing barriers between national markets, trading blocks create competition due to bigger trading area.
Reason (R): Increased competition can lead to the closure of local industry and harm domestic consumption.
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: (B) Both A and R are correct but R is not the correct explanation of A
Explanation
Regional trade integration creates enlarged internal markets across member countries.

Assertion (A) is correct because dismantling tariff and quota barriers integrates separate national jurisdictions into a common market, stimulating intensified cross-border competition.

Reason (R) is correct because heightened competitive pressure from low-cost regional producers can displace inefficient domestic firms and trigger industrial restructuring.

Reason (R) does not explain (A) because R details potential adverse consequences of competition rather than explaining the economic mechanism that creates enlarged market competition.
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Question 73

Match List I with List II:

List I (Consequent outcome)	List II (Taxation Perspective)
A. The person is liable to penalty and prosecution	I. Tax Management
B. Tax is reduced by taking advantage of loopholes of the law	II. Tax Avoidance
C. Main aim is compliance with legal formalities	III. Tax Evasion
D. It is a guide in decision making	IV. Tax planning

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

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

Explanation

Tax compliance and fiscal strategies are distinguished by their legal validity and operational objectives.

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

A. Person is liable to penalty and prosecution (III) — Tax Evasion, an illegal and deliberate concealment of income.
B. Tax reduced by taking advantage of legal loopholes (II) — Tax Avoidance, exploiting ambiguities in statutory drafting.
C. Main aim is compliance with legal formalities (I) — Tax Management, ensuring timely filing, documentation, and TDS compliance.
D. Guide in decision making (IV) — Tax Planning, arranging economic transactions legally to claim legitimate exemptions.

Question 74
Which are the RBI notified domestic accredited credit rating agencies?

a) Brickwork ratings
b) Active ratings
c) CRISIL ratings
d) Standard and Poor's
e) Moody's

Choose the correct answer from the options given below:
1. Ab and c only
2. Bc and d only
3. Ca and c only
4. Dc and e only
Answer: (C) a and c only
Explanation
Under the Basel capital adequacy framework, the Reserve Bank of India accredits domestic External Credit Assessment Institutions (ECAIs).

Domestic accredited agencies include Brickwork Ratings (a), CRISIL (c), CARE, ICRA, India Ratings, and Infomerics.

Standard and Poor's (d) and Moody's (e) are international credit rating agencies.

Active ratings (b) is unaccredited.

Therefore, only Brickwork ratings and CRISIL ratings (a and c) are RBI-notified domestic accredited agencies.
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Question 75
From the following, which is an uncommon feature of Private Equity and Venture Capital?
1. ABoth invest in companies that are not able to or ready to gain capital from the public
2. BTheir investment is used for financial or operating restructuring of the Investor companies
3. CThey are set up an independent pools of capital contributed by institutions or the high net worth individuals
4. DTheir activities are subject to few regulations
Answer: (B) Their investment is used for financial or operating restructuring of the Investor companies
Explanation
While Private Equity (PE) and Venture Capital (VC) both provide private illiquid equity capital, their strategic investment profiles differ significantly.

Restructuring focus (B) — uncommon feature. Private Equity focuses heavily on mature companies requiring leveraged buyouts, management turnarounds, and operational restructuring, whereas Venture Capital invests in nascent startup ventures for innovation and rapid commercial growth without restructuring existing operations.

Both invest in non-public companies (A), aggregate institutional and high-net-worth capital pools (C), and operate with lighter regulatory oversight than public equity markets (D).
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Question 76
Which one of the following is a fully owned subsidiary of the R.B.I?
1. AIndian Institute of Bank Management (IIBM)
2. BNational Institute of Bank Management (NIBM)
3. CIndian Institute of Banking and Finance (IIBF)
4. DIndian Financial Technology and Allied Services (IFTAS)
Answer: (D) Indian Financial Technology and Allied Services (IFTAS)
Explanation
Indian Financial Technology and Allied Services (IFTAS) is a wholly owned subsidiary of the Reserve Bank of India.

IFTAS designs, deploys, and operates critical financial IT infrastructure including the INFINET network and structured financial messaging systems for the banking industry.

Other wholly owned subsidiaries of the RBI include DICGC, BRBNMPL, ReBIT, and the Reserve Bank Innovation Hub.

IIBF, NIBM, and IIBM are independent academic and professional training institutes rather than wholly owned subsidiaries of the central bank.
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Question 77
Starting from the earliest, sequence the steps taken to develop the money market in India:

a) Introduction of Interest Rate Swaps (IRSs)
b) Introduction of Commercial Paper
c) Introduction of Ways and Means Advances (WMA) linked to bank rate
d) Introduction of Liquidity Adjustment Facility (LAF)
e) Implementation of Real Time Gross Settlement (RTGS)

Choose the correct answer from the options given below:
1. Ac, b, d, a, e
2. Bd, c, b, e, a
3. Cb, d, c, a, e
4. Db, c, d, a, e
Answer: (D) b, c, d, a, e
Explanation
The chronological modernization of the Indian money and interbank payment markets occurred through milestone financial innovations.

b, c, d, a, e

Commercial Paper (b) — introduced in 1990 following Vaghul Committee recommendations

Ways and Means Advances (c) — introduced in 1997 replacing ad-hoc treasury bills for government deficit financing

Liquidity Adjustment Facility (d) — operationalized in June 2000 following Narasimham Committee II proposals

Interest Rate Swaps (a) — guidelines introduced in 1999 and expanded in derivative markets

Real Time Gross Settlement (e) — implemented by the RBI in 2004 for high-value interbank settlements
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Question 78
The optimal capital budget of a firm is reflected by intersection point of:
1. ASecurity market line and capital market line
2. BWeighted average cost of capital curve and marginal cost of capital curve
3. CInvestment opportunity curve and marginal cost of capital curve
4. DWeighted average cost of capital curve and investment opportunity curve
Answer: (C) Investment opportunity curve and marginal cost of capital curve
Explanation
In corporate capital budgeting theory, a firm determines its optimal capital expenditure level by balancing project returns against capital costs.

The Investment Opportunity Schedule (IOS) curve plots potential capital projects in descending order of their internal rate of return.

The Marginal Cost of Capital (MCC) curve plots the ascending cost of raising successive increments of new financing.

The intersection point where the marginal return on investment equals the marginal cost of capital defines the optimal capital budget, maximizing enterprise value.
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Question 79
The total return for an equity stock during a year was 12.5 per cent. The rate of inflation during that year was 3.5 per cent. The real (inflation-adjusted) return was:
1. A9.26 per cent
2. B16.00 per cent
3. C7.65 per cent
4. D8.70 per cent
Answer: (D) 8.70 per cent
Explanation
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Question 80
Which of the following is not the limitation of activity based costing?
1. AIt involves various support activities in the process of making products
2. BIt does not provide relevant information for decision making
3. CAll costs cannot be identified easily with a particular activity
4. DSet up cost as well as costs of running and updating the ABC system are very high
Answer: (A) It involves various support activities in the process of making products
Explanation
Activity-Based Costing (ABC) models overhead consumption by assigning indirect resources to cost pools based on operational activities.

Involving support activities in the manufacturing workflow (A) is a core structural feature and operational strength of ABC, enabling more accurate cost tracing rather than representing a defect or limitation.

High implementation and software maintenance costs (D) and difficulty identifying non-linear cost drivers for complex activities (C) represent genuine operational limitations of ABC systems.
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Question 81
In the context of banking sector, Spread is defined as a function of the following:

a) Forex
b) Net Interest income
c) Rate Sensitive Assets
d) Asset Ratio
e) Leverage Ratio

Choose the correct answer from the options given below:
1. Ac and e only
2. Ba and c only
3. Cb and d only
4. Db and e only
Answer: (C) b and d only
Explanation
In commercial bank financial analysis, interest rate spread measures the difference between the average yield on earning assets and the average rate paid on interest-bearing funds.

Spread is derived from Net Interest Income (b), which represents gross interest revenue minus gross interest expenditure.

It is scaled and evaluated against the bank's underlying earning asset base through asset ratios (d).

Forex activities (a) generate non-interest fee income rather than spread, and leverage ratios (e) monitor solvency and capital adequacy.
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Question 82
Which committee had recommended a comprehensive framework of reform in the insurance sector?
1. AGhosh Committee (1993)
2. BSodhani Committee (1994)
3. CMalhotra Committee (1993)
4. DKalia Committee (1994)
Answer: (C) Malhotra Committee (1993)
Explanation
The Committee on Reforms in the Insurance Sector was constituted by the Government of India in 1993 under the chairmanship of R.N. Malhotra, former Governor of the Reserve Bank of India.

The Malhotra Committee submitted its report in 1994, recommending ending state monopolies in life and general insurance, permitting private and foreign equity participation, and establishing an independent statutory regulatory authority.

These recommendations culminated in the enactment of the Insurance Regulatory and Development Authority (IRDA) Act, 1999.

Ghosh Committee addressed bank frauds, and Sodhani Committee examined foreign exchange markets.
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Question 83
"It is an art of dodging tax without actually breaking the law". This is related with:
1. ATax Management
2. BTax Avoidance
3. CTax Planning
4. DTax Evasion
Answer: (B) Tax Avoidance
Explanation
Tax avoidance describes the practice of minimizing tax obligations by legally exploiting drafting ambiguities and loopholes within the tax statute.

In judicial precedents including McDowell & Co. Ltd., courts described tax avoidance as the art of dodging tax without violating the literal text of the statute.

Tax Evasion (D) involves illegal concealment or fraudulent misrepresentation.

Tax Planning (C) legitimately aligns financial affairs with the legislative intent of statutory deductions and exemptions.

Tax Management (A) focuses on administrative compliance and procedural filings.
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Question 84
In which of the following balance of payment accounts changes in holdings of gold and foreign currencies by official monetary institutions are accounted for?
1. ACurrent Account
2. BCapital Account
3. COfficial Reserves Account
4. DForeign Exchange Account
Answer: (C) Official Reserves Account
Explanation
In balance of payments accounting, international transactions are classified into the current account, the capital and financial account, and the official reserves account.

The Official Reserves Account records net changes in the foreign asset holdings of the central bank and monetary authorities, including monetary gold, foreign exchange assets, Special Drawing Rights (SDRs), and reserve tranche positions in the IMF.

The Current Account tracks international trade in merchandise, services, and unilateral transfers.

The Capital Account records international asset purchases and debt flows between private entities and governments.
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Question 85
The steps to be followed by a firm while strategizing to go international are as follows:

a) Deciding when to enter
b) Deciding which markets to enter
c) Deciding whether to go global
d) Choosing a mode of entry
e) Deciding how to enter the chosen market

Choose the correct answer from the options given below:
1. Ae, d, c, b, a
2. Bc, a, e, d, b
3. Cc, b, a, e, d
4. Da, b, c, e, d
Answer: (C) c, b, a, e, d
Explanation
Global marketing strategy follows a structured decision hierarchy for international business expansion.

c, b, a, e, d

Step 1: Deciding whether to go global (c) — evaluates domestic market maturity and global competitiveness

Step 2: Deciding which markets to enter (b) — screens candidate countries by market potential and risk

Step 3: Deciding when to enter (a) — determines strategic timing and order of market entry

Step 4: Deciding how to enter the chosen market (e) — evaluates operational and resource commitments

Step 5: Choosing a mode of entry (d) — selects exporting, licensing, franchising, joint ventures, or direct subsidiaries
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Question 86
Which of the following are correct for Agricultural Income?

a) Income from self-grown grass, trees, bamboo
b) Rent and Rates derived from land
c) Income from making the produce fit for marketing
d) Income from land used for storing agriculture produce
e) Income from farmhouse

Choose the correct answer from the options given below:
1. Ab, c and e only
2. Bb, d and e only
3. Ca, c and d only
4. Dc, d and e only
Answer: (A) b, c and e only
Explanation
Under Section 2(1A) of the Income Tax Act, 1961, agricultural income comprises specific statutory categories of earnings derived from land situated in India used for agricultural purposes.

Rent or revenue derived from agricultural land (b)

Income from performing manual or mechanical operations ordinarily employed to make produce fit for market (c)

Income from buildings or farmhouses directly required for agricultural operations on the land (e)

Income from wild, self-grown grass, timber, or bamboo without human cultivation (a) is non-agricultural income.

Commercial rent from storing produce in commercial warehouses (d) is taxable business income.

Therefore, statements b, c, and e represent agricultural income.
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Question 87
The problem-definition process involves following steps. Arrange them in a logical Sequence:

a) Determine the unit of analysis
b) Determine the relevant variables
c) Write managerial decision statement and research objectives
d) Write research question and/or research hypothesis
e) Identify key problems

Choose the correct answer from the options given below:
1. Aa, b, e, d, c
2. Bc, d, a, b, e
3. Cb, e, a, c, d
4. De, c, a, b, d
Answer: (D) e, c, a, b, d
Explanation
In business research methodology, formulating and defining the research problem follows a progressive analytical sequence.

e, c, a, b, d

Step 1: Identify key business problems and symptoms (e)

Step 2: Write managerial decision statements and research objectives (c)

Step 3: Determine the unit of analysis such as individuals or organizations (a)

Step 4: Determine relevant variables and operational concepts (b)

Step 5: Formulate formal research questions and testable hypotheses (d)
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Question 88
Which one of the following is the hiring related turnover cost when an employee quits an organization?
1. AAdvertising
2. BInterviewing
3. CTraining
4. DRecruiter fees
Answer: (B) Interviewing
Explanation
Human resource turnover costing separates employee replacement expenses into distinct operational categories.

Interviewing (B) — represents the internal management time and executive hiring cost incurred when screening prospective candidates to replace departed personnel.

Advertising (A) and Recruiter fees (D) — are classified as pre-employment recruitment and candidate attraction costs.

Training (C) — constitutes an onboarding and development expenditure incurred after hiring.
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Question 89
A multinational company can use which prices to create profits in low tax regimes and loss in high tax regimes?
1. ADivisional prices
2. BInter-Divisional Prices
3. CHolding company prices
4. DTransfer prices
Answer: (D) Transfer prices
Explanation
Transfer pricing refers to the internal price charged on transactions involving goods, services, or intellectual property exchanged between related entities of a multinational enterprise.

By setting high transfer prices on sales originating from subsidiaries located in low-tax jurisdictions to affiliates in high-tax regimes, the enterprise artificially lowers taxable income in high-tax countries.

Tax authorities enforce Arm's Length Price rules under transfer pricing regulations to counter base erosion and profit shifting.
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Question 90
An attacking strategy which involves introducing new products or technologies that rewrite the rules of competition in the market and avoid direct conflict with a rival is known as:
1. AFlanking
2. BBypass
3. CEncirclement
4. DGuerrilla
Answer: (B) Bypass
Explanation
In competitive marketing strategy, market challengers deploy specific offensive maneuvers against entrenched market leaders.

Bypass attack (B) — correct. The firm circumvents the competitor's established stronghold by diversifying into unrelated product categories, developing new geographical markets, or introducing disruptive technologies that change competitive boundaries.

Flanking (A) — attacks vulnerable gaps in competitor geographic or segment coverage.

Encirclement (C) — launches multiple simultaneous offensives across price, product, and distribution fronts.

Guerrilla (D) — utilizes small, intermittent promotional strikes.
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Question 91
Which of the following use cases are expected to promote the growth of payment banks?

a) UPI integration with the digital rupee
b) Dislocation of payment banks from digital transactions
c) UPI facilitation of cross-border remittances
d) Keeping a safe distance from the contactless payment infrastructure
e) Consumer lending through RuPay Credit Cards

Choose the most appropriate answer from the options
Interoperability guidelines for prepaid payment instruments with United Payments Interface (UPI) bolster the business case for digital wallets. For a loading fee on transactions through UPI, payments banks, for instance, can widen the adoption of wallets among customers and merchants. This increases use cases for UPI, which largely works on a model of free peer-to-peer-merchant transactions. The opportunity provided by the scorching growth of UPI transactions must, however, cross the hurdle of consumer behavior that is shaped by zero fees for payments made from their bank accounts. For survival, payments banks — which can accept deposits but are prohibited from lending — need to be part of the UPI ecosystem. They also need to carve out a distinct business segment where they have an advantage over full-service banks.

Those use cases are expected to grow as UPI diversifies into cross-border remittances, introduces consumer lending through RuPay credit cards, offers currency exchange to foreign travelers, and bill payments using standing instructions gain traction. UPI will also have to integrate with the digital rupee that is undergoing tests for retail and wholesale transactions. The digital payments platform will continue to play a key role in the infrastructure that is being developed around contactless payments. This involves building additional UPI context around digital transactions such as billing and credit-profiling. Initial adoption has surpassed the most optimistic expectations, principally on account of the waiver of the merchant discount rate. In the next leg, UPI will grow by providing solutions for the conduct of business. It will have to incorporate lending at some point to become a comprehensive medium of commerce. The infrastructure must encourage fintechs to push innovation in finance. Payments banks have a strong correlation with the growth of digital transactions. They are a vital piece of the machinery being built, and interoperability with UPI guidelines plugs them deeper.
1. Aa, b and c only
2. Bc, d and e only
3. Ca, c and e only
4. Db, d and e only
Answer: (C) a, c and e only
Explanation
The reading passage specifies multiple emerging digital use cases that bolster the business case and expansion of payments banks.

UPI integration with the central bank digital rupee (a)

UPI facilitation of cross-border remittances (c)

Consumer lending through RuPay credit cards (e)

Dislocating payment banks (b) and distancing them from contactless payments (d) directly contradict the passage.
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Question 92
Contactless payments infrastructure will empower fintechs for:
Interoperability guidelines for prepaid payment instruments with United Payments Interface (UPI) bolster the business case for digital wallets. For a loading fee on transactions through UPI, payments banks, for instance, can widen the adoption of wallets among customers and merchants. This increases use cases for UPI, which largely works on a model of free peer-to-peer-merchant transactions. The opportunity provided by the scorching growth of UPI transactions must, however, cross the hurdle of consumer behavior that is shaped by zero fees for payments made from their bank accounts. For survival, payments banks — which can accept deposits but are prohibited from lending — need to be part of the UPI ecosystem. They also need to carve out a distinct business segment where they have an advantage over full-service banks.

Those use cases are expected to grow as UPI diversifies into cross-border remittances, introduces consumer lending through RuPay credit cards, offers currency exchange to foreign travelers, and bill payments using standing instructions gain traction. UPI will also have to integrate with the digital rupee that is undergoing tests for retail and wholesale transactions. The digital payments platform will continue to play a key role in the infrastructure that is being developed around contactless payments. This involves building additional UPI context around digital transactions such as billing and credit-profiling. Initial adoption has surpassed the most optimistic expectations, principally on account of the waiver of the merchant discount rate. In the next leg, UPI will grow by providing solutions for the conduct of business. It will have to incorporate lending at some point to become a comprehensive medium of commerce. The infrastructure must encourage fintechs to push innovation in finance. Payments banks have a strong correlation with the growth of digital transactions. They are a vital piece of the machinery being built, and interoperability with UPI guidelines plugs them deeper.
1. AInteroperability with the UPI
2. BInnovation in finance
3. CIntegration with the UPI ecosystem
4. DIntegration with the full service banks
Answer: (B) Innovation in finance
Explanation
The reading passage discusses the strategic role of payment infrastructure development.

The passage states: "The infrastructure must encourage fintechs to push innovation in finance."

Promoting innovation in finance enables fintechs to develop contextual transaction layers around billing, credit-profiling, and commercial lending.
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Question 93
Why do the payment banks need to carve out a distinct business segment for themselves?
Interoperability guidelines for prepaid payment instruments with United Payments Interface (UPI) bolster the business case for digital wallets. For a loading fee on transactions through UPI, payments banks, for instance, can widen the adoption of wallets among customers and merchants. This increases use cases for UPI, which largely works on a model of free peer-to-peer-merchant transactions. The opportunity provided by the scorching growth of UPI transactions must, however, cross the hurdle of consumer behavior that is shaped by zero fees for payments made from their bank accounts. For survival, payments banks — which can accept deposits but are prohibited from lending — need to be part of the UPI ecosystem. They also need to carve out a distinct business segment where they have an advantage over full-service banks.

Those use cases are expected to grow as UPI diversifies into cross-border remittances, introduces consumer lending through RuPay credit cards, offers currency exchange to foreign travelers, and bill payments using standing instructions gain traction. UPI will also have to integrate with the digital rupee that is undergoing tests for retail and wholesale transactions. The digital payments platform will continue to play a key role in the infrastructure that is being developed around contactless payments. This involves building additional UPI context around digital transactions such as billing and credit-profiling. Initial adoption has surpassed the most optimistic expectations, principally on account of the waiver of the merchant discount rate. In the next leg, UPI will grow by providing solutions for the conduct of business. It will have to incorporate lending at some point to become a comprehensive medium of commerce. The infrastructure must encourage fintechs to push innovation in finance. Payments banks have a strong correlation with the growth of digital transactions. They are a vital piece of the machinery being built, and interoperability with UPI guidelines plugs them deeper.
1. ATo be a part of the UPI ecosystem
2. BBecause payment banks are in competition with full service banks
3. CBecause payment banks are mandated to push innovation in finance
4. DIn order to entitle themselves for lending
Answer: (B) Because payment banks are in competition with full service banks
Explanation
The passage details the operational constraints faced by payments banks relative to commercial banks.

The text states: "For survival, payments banks — which can accept deposits but are prohibited from lending — need to be part of the UPI ecosystem. They also need to carve out a distinct business segment where they have an advantage over full-service banks."

Because payments banks are in structural competition with full-service banks that offer lending and zero-fee transactions, they must establish a differentiated niche to ensure commercial viability.
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Question 94
Assertion (A): Payment banks — which can accept deposits but are prohibited from lending — need to be part of the UPI ecosystem.
Reason (R): Loading fee on transactions through UPI, payment banks can widen the adoption of wallets among customers and merchants.
Interoperability guidelines for prepaid payment instruments with United Payments Interface (UPI) bolster the business case for digital wallets. For a loading fee on transactions through UPI, payments banks, for instance, can widen the adoption of wallets among customers and merchants. This increases use cases for UPI, which largely works on a model of free peer-to-peer-merchant transactions. The opportunity provided by the scorching growth of UPI transactions must, however, cross the hurdle of consumer behavior that is shaped by zero fees for payments made from their bank accounts. For survival, payments banks — which can accept deposits but are prohibited from lending — need to be part of the UPI ecosystem. They also need to carve out a distinct business segment where they have an advantage over full-service banks.

Those use cases are expected to grow as UPI diversifies into cross-border remittances, introduces consumer lending through RuPay credit cards, offers currency exchange to foreign travelers, and bill payments using standing instructions gain traction. UPI will also have to integrate with the digital rupee that is undergoing tests for retail and wholesale transactions. The digital payments platform will continue to play a key role in the infrastructure that is being developed around contactless payments. This involves building additional UPI context around digital transactions such as billing and credit-profiling. Initial adoption has surpassed the most optimistic expectations, principally on account of the waiver of the merchant discount rate. In the next leg, UPI will grow by providing solutions for the conduct of business. It will have to incorporate lending at some point to become a comprehensive medium of commerce. The infrastructure must encourage fintechs to push innovation in finance. Payments banks have a strong correlation with the growth of digital transactions. They are a vital piece of the machinery being built, and interoperability with UPI guidelines plugs them deeper.
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 not 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
The opening paragraph of the passage links wallet loading fees directly to the necessity of UPI participation.

Assertion (A) is true because payments banks cannot lend and must integrate with UPI to capture volume and survive.

Reason (R) is true because charging loading fees on UPI transactions allows payments banks to expand wallet adoption and build viable revenue streams.

Reason (R) directly explains the economic motivation in Assertion (A), showing why UPI ecosystem integration is indispensable.
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Question 95
Statement I: Initial UPI adoption has surpassed the most optimistic expectations on account of the waiver of the merchant discount rate.
Statement II: The future growth of the UPI will be facilitated by providing solution for the conduct of business and to becoming a medium of commerce.
Interoperability guidelines for prepaid payment instruments with United Payments Interface (UPI) bolster the business case for digital wallets. For a loading fee on transactions through UPI, payments banks, for instance, can widen the adoption of wallets among customers and merchants. This increases use cases for UPI, which largely works on a model of free peer-to-peer-merchant transactions. The opportunity provided by the scorching growth of UPI transactions must, however, cross the hurdle of consumer behavior that is shaped by zero fees for payments made from their bank accounts. For survival, payments banks — which can accept deposits but are prohibited from lending — need to be part of the UPI ecosystem. They also need to carve out a distinct business segment where they have an advantage over full-service banks.

Those use cases are expected to grow as UPI diversifies into cross-border remittances, introduces consumer lending through RuPay credit cards, offers currency exchange to foreign travelers, and bill payments using standing instructions gain traction. UPI will also have to integrate with the digital rupee that is undergoing tests for retail and wholesale transactions. The digital payments platform will continue to play a key role in the infrastructure that is being developed around contactless payments. This involves building additional UPI context around digital transactions such as billing and credit-profiling. Initial adoption has surpassed the most optimistic expectations, principally on account of the waiver of the merchant discount rate. In the next leg, UPI will grow by providing solutions for the conduct of business. It will have to incorporate lending at some point to become a comprehensive medium of commerce. The infrastructure must encourage fintechs to push innovation in finance. Payments banks have a strong correlation with the growth of digital transactions. They are a vital piece of the machinery being built, and interoperability with UPI guidelines plugs them deeper.
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 are confirmed by the text of the reading passage.

Statement I is correct: "Initial adoption has surpassed the most optimistic expectations. But that is principally on account of the waiver of the merchant discount rate."

Statement II is correct: "In the next leg, UPI will grow by providing solutions for the conduct of business. It will have to incorporate lending at some point to become a comprehensive medium of commerce."

Therefore, both Statement I and Statement II are correct.
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Question 96
The money used for trading is allowed to be transferred directly to clearing corporation through:
The proposed facility similar to the Applications Supported by Blocked Amount (ASBA) for secondary markets has elements to protect investors while increasing their potential earnings. The way it works now in the primary market is that money remains blocked in investor accounts, earning interest till issues of Initial Public Offerings (IPO) accept subscriptions. Replicating this for the secondary market is more complicated because of the number of parties, as well as the kinds of transactions, involved. Investors place a variety of orders over differing time horizons with or without leverage for multiple securities in the secondary market. Incorporating all these variables for a mechanism like ASBA involves escrow arrangements with counterparties in a dynamic environment.

The technical challenge may be considerable but not insurmountable. In this, the Securities and Exchange Board of India (SEBI) is on the right course in its effort to provide such a structure for investors. The Unified Payments Interface (UPI) allows money used for trading to be transferred directly to clearing corporations, which can then settle with brokers. This flushes out money idling with brokers, lowering risk of abuse and containing the fallout in case of broker default. This also offers a pathway for direct settlement, bypassing the pool accounts of intermediaries. SEBI has thus acted on its regulatory remit of protecting investors' cash as well as their securities.

SEBI has offered relief to brokerages that stand to lose float income on account of upstreaming client money to clearing corporations. Brokerages have been allowed to upstream clients' funds in the form of fixed deposit lien or mutual fund units. This should keep intermediation fees low while the market regulator nudges the system to clear excess funds from the broker channel. Higher upfront brokerage fees are an improvement over those subsidized by float income, bettering systemic oversight. This could lead to concentration among brokerages as discount players lose their advantage.
1. AEscrow Arrangement
2. BUnified Payments Interface
3. CE-banking
4. DCredit cards
Answer: (B) Unified Payments Interface
Explanation
The reading passage explains the technological architecture facilitating secondary market ASBA.

The text states: "The Unified Payments Interface (UPI) allows money used for trading to be transferred directly to clearing corporations, which can then settle with brokers."

This direct transfer flushes out uninvested cash idling with brokers and minimizes intermediary default risk.
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Question 97
Which are reasons that make replication of ASBA for the secondary market complicated:

a) Kinds of transactions
b) Presence of large number of brokers
c) Applicability of SEBI guideline
d) Number of Parties
e) Differing time horizon

Choose the most appropriate answer from the options
The proposed facility similar to the Applications Supported by Blocked Amount (ASBA) for secondary markets has elements to protect investors while increasing their potential earnings. The way it works now in the primary market is that money remains blocked in investor accounts, earning interest till issues of Initial Public Offerings (IPO) accept subscriptions. Replicating this for the secondary market is more complicated because of the number of parties, as well as the kinds of transactions, involved. Investors place a variety of orders over differing time horizons with or without leverage for multiple securities in the secondary market. Incorporating all these variables for a mechanism like ASBA involves escrow arrangements with counterparties in a dynamic environment.

The technical challenge may be considerable but not insurmountable. In this, the Securities and Exchange Board of India (SEBI) is on the right course in its effort to provide such a structure for investors. The Unified Payments Interface (UPI) allows money used for trading to be transferred directly to clearing corporations, which can then settle with brokers. This flushes out money idling with brokers, lowering risk of abuse and containing the fallout in case of broker default. This also offers a pathway for direct settlement, bypassing the pool accounts of intermediaries. SEBI has thus acted on its regulatory remit of protecting investors' cash as well as their securities.

SEBI has offered relief to brokerages that stand to lose float income on account of upstreaming client money to clearing corporations. Brokerages have been allowed to upstream clients' funds in the form of fixed deposit lien or mutual fund units. This should keep intermediation fees low while the market regulator nudges the system to clear excess funds from the broker channel. Higher upfront brokerage fees are an improvement over those subsidized by float income, bettering systemic oversight. This could lead to concentration among brokerages as discount players lose their advantage.
1. Ac, d and e only
2. Ba, b and c only
3. Ca and d only
4. Db and c only
Answer: (C) a and d only
Explanation
The opening paragraph of the passage details why adapting ASBA to the secondary market is complex.

The text explicitly states: "Replicating this for the secondary market is more complicated because of the number of parties (d), as well as the kinds of transactions (a), involved."

The passage highlights these two specific drivers of complexity.

Therefore, factors a and d represent the exact reasons identified in the passage.
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Question 98
Assertion (A): SEBI has offered relief to brokerages that stand to lose float income on account of up streaming client money to clearing corporations.
Reason (R): Brokerage have been allowed to upstream clients' fund in the form of fixed deposit lien or mutual fund units.
The proposed facility similar to the Applications Supported by Blocked Amount (ASBA) for secondary markets has elements to protect investors while increasing their potential earnings. The way it works now in the primary market is that money remains blocked in investor accounts, earning interest till issues of Initial Public Offerings (IPO) accept subscriptions. Replicating this for the secondary market is more complicated because of the number of parties, as well as the kinds of transactions, involved. Investors place a variety of orders over differing time horizons with or without leverage for multiple securities in the secondary market. Incorporating all these variables for a mechanism like ASBA involves escrow arrangements with counterparties in a dynamic environment.

The technical challenge may be considerable but not insurmountable. In this, the Securities and Exchange Board of India (SEBI) is on the right course in its effort to provide such a structure for investors. The Unified Payments Interface (UPI) allows money used for trading to be transferred directly to clearing corporations, which can then settle with brokers. This flushes out money idling with brokers, lowering risk of abuse and containing the fallout in case of broker default. This also offers a pathway for direct settlement, bypassing the pool accounts of intermediaries. SEBI has thus acted on its regulatory remit of protecting investors' cash as well as their securities.

SEBI has offered relief to brokerages that stand to lose float income on account of upstreaming client money to clearing corporations. Brokerages have been allowed to upstream clients' funds in the form of fixed deposit lien or mutual fund units. This should keep intermediation fees low while the market regulator nudges the system to clear excess funds from the broker channel. Higher upfront brokerage fees are an improvement over those subsidized by float income, bettering systemic oversight. This could lead to concentration among brokerages as discount players lose their advantage.
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
The final paragraph of the passage connects regulatory relief directly to upstreaming mechanisms.

Assertion (A) is true: "SEBI has offered relief to brokerages that stand to lose float income on account of up streaming client money to clearing corporations."

Reason (R) is true: "Brokerages have been allowed to upstream clients' funds in the form of fixed deposit lien or mutual fund units."

Reason (R) defines the specific relief mechanism granted by SEBI, providing the direct explanation for Assertion (A).
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Question 99
The SEBI has acted on its regulatory remit of protecting investors cash and:
The proposed facility similar to the Applications Supported by Blocked Amount (ASBA) for secondary markets has elements to protect investors while increasing their potential earnings. The way it works now in the primary market is that money remains blocked in investor accounts, earning interest till issues of Initial Public Offerings (IPO) accept subscriptions. Replicating this for the secondary market is more complicated because of the number of parties, as well as the kinds of transactions, involved. Investors place a variety of orders over differing time horizons with or without leverage for multiple securities in the secondary market. Incorporating all these variables for a mechanism like ASBA involves escrow arrangements with counterparties in a dynamic environment.

The technical challenge may be considerable but not insurmountable. In this, the Securities and Exchange Board of India (SEBI) is on the right course in its effort to provide such a structure for investors. The Unified Payments Interface (UPI) allows money used for trading to be transferred directly to clearing corporations, which can then settle with brokers. This flushes out money idling with brokers, lowering risk of abuse and containing the fallout in case of broker default. This also offers a pathway for direct settlement, bypassing the pool accounts of intermediaries. SEBI has thus acted on its regulatory remit of protecting investors' cash as well as their securities.

SEBI has offered relief to brokerages that stand to lose float income on account of upstreaming client money to clearing corporations. Brokerages have been allowed to upstream clients' funds in the form of fixed deposit lien or mutual fund units. This should keep intermediation fees low while the market regulator nudges the system to clear excess funds from the broker channel. Higher upfront brokerage fees are an improvement over those subsidized by float income, bettering systemic oversight. This could lead to concentration among brokerages as discount players lose their advantage.
1. ASecurities
2. BDividend Income
3. CGrievances of payment
4. DPublic Deposits
Answer: (A) Securities
Explanation
The passage outlines the regulatory mandate of the Securities and Exchange Board of India.

The text states: "SEBI has thus, acted on its regulatory remit of protecting investors' cash as well as their securities."

Facilitating direct clearing house settlements shields both investor funds and securities from broker insolvency.
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Question 100
The Application Supported by Blocked Amount (ASBA) originally developed for which market?
The proposed facility similar to the Applications Supported by Blocked Amount (ASBA) for secondary markets has elements to protect investors while increasing their potential earnings. The way it works now in the primary market is that money remains blocked in investor accounts, earning interest till issues of Initial Public Offerings (IPO) accept subscriptions. Replicating this for the secondary market is more complicated because of the number of parties, as well as the kinds of transactions, involved. Investors place a variety of orders over differing time horizons with or without leverage for multiple securities in the secondary market. Incorporating all these variables for a mechanism like ASBA involves escrow arrangements with counterparties in a dynamic environment.

The technical challenge may be considerable but not insurmountable. In this, the Securities and Exchange Board of India (SEBI) is on the right course in its effort to provide such a structure for investors. The Unified Payments Interface (UPI) allows money used for trading to be transferred directly to clearing corporations, which can then settle with brokers. This flushes out money idling with brokers, lowering risk of abuse and containing the fallout in case of broker default. This also offers a pathway for direct settlement, bypassing the pool accounts of intermediaries. SEBI has thus acted on its regulatory remit of protecting investors' cash as well as their securities.

SEBI has offered relief to brokerages that stand to lose float income on account of upstreaming client money to clearing corporations. Brokerages have been allowed to upstream clients' funds in the form of fixed deposit lien or mutual fund units. This should keep intermediation fees low while the market regulator nudges the system to clear excess funds from the broker channel. Higher upfront brokerage fees are an improvement over those subsidized by float income, bettering systemic oversight. This could lead to concentration among brokerages as discount players lose their advantage.
1. APrimary Market
2. BSecondary Market
3. CMoney Market
4. DForex Market
Answer: (A) Primary Market
Explanation
The opening lines of the reading passage describe the operational foundation of the ASBA mechanism.

The passage states: "The way it works now in the primary market is that money remains blocked in investor accounts, earning interest till issues of Initial Public Offerings (IPO) accept subscriptions."

Therefore, ASBA was established and currently operates in the primary equity market for IPO subscriptions.
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Attempt Paper 2 — Commerce · Shift 1 as a timed test

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Paper 1 — General Aptitude · Shift 2

Attempt this paper

50 questions with the answer key and explanations.

Question 1
What is the difference between the number of Model-C Mobile phones produced by the company in the years 2021 and 2022?
The following table shows the percentage distribution of five different Models (A-E) of Mobile Phones produced by a company during the years 2021 and 2022. Total number of Mobile Phones produced by the company in 2021 and 2022 is 4,50,000 and 5,20,000, respectively.

Year-wise Percentage (%) Distribution of Model of Mobile Phones

Model/Year A B C D E
2021 15% 25% 30% 10% 20%
2022 10% 30% 25% 25% 10%
1. A5000
2. B7500
3. C10000
4. D2500
Answer: (A) 5000
Explanation
Calculate the production of Model-C in each year from the given percentages and totals.

Model-C in 2021:
30% of 4,50,000 = 1,35,000 phones

Model-C in 2022:
25% of 5,20,000 = 1,30,000 phones

Difference:
1,35,000 - 1,30,000 = 5,000 phones

A. 5000 — correct. Reflects the exact difference of 5,000 phones.

B. 7500 — incorrect calculation.

C. 10000 — incorrect calculation.

D. 2500 — incorrect calculation.
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Question 2
If 85% of the number of Model-E Mobile phones produced by the company during 2021 and 2022 were sold, then how many Model-E Mobile phones were left unsold by the company?
The following table shows the percentage distribution of five different Models (A-E) of Mobile Phones produced by a company during the years 2021 and 2022. Total number of Mobile Phones produced by the company in 2021 and 2022 is 4,50,000 and 5,20,000, respectively.

Year-wise Percentage (%) Distribution of Model of Mobile Phones

Model/Year A B C D E
2021 15% 25% 30% 10% 20%
2022 10% 30% 25% 25% 10%
1. A142800
2. B21300
3. C29100
4. D25200
Answer: (B) 21300
Explanation
Determine the total Model-E production across both years and find the 15% unsold share.

Model-E in 2021:
20% of 4,50,000 = 90,000 phones

Model-E in 2022:
10% of 5,20,000 = 52,000 phones

Total Model-E produced:
90,000 + 52,000 = 1,42,000 phones

Unsold percentage:
100% - 85% = 15%

Number unsold:
15% of 1,42,000 = 21,300 phones

A. 142800 — represents the total production multiplied by 0.85 without subtracting sold units from total.

B. 21300 — correct. 15% of 1,42,000 is 21,300.

C. 29100 — arithmetic error.

D. 25200 — arithmetic error.
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Question 3
If the number of Model-A Mobile phones produced by the company in 2022 was the same as that in 2021, then what would have been its approximate percentage share in the total production of 2022?
The following table shows the percentage distribution of five different Models (A-E) of Mobile Phones produced by a company during the years 2021 and 2022. Total number of Mobile Phones produced by the company in 2021 and 2022 is 4,50,000 and 5,20,000, respectively.

Year-wise Percentage (%) Distribution of Model of Mobile Phones

Model/Year A B C D E
2021 15% 25% 30% 10% 20%
2022 10% 30% 25% 25% 10%
1. A11%
2. B13%
3. C15%
4. D9%
Answer: (B) 13%
Explanation
Find Model-A production in 2021 and compute its hypothetical share in the 2022 total of 5,20,000 phones.

Model-A in 2021:
15% of 4,50,000 = 67,500 phones

Hypothetical percentage share in 2022:
(67,500 / 5,20,000) * 100% = 675 / 52 = 12.98%

Rounding to the nearest whole percentage gives 13%.

A. 11% — underestimate.

B. 13% — correct. 12.98% rounds to 13%.

C. 15% — corresponds to the 2021 percentage share instead of the recomputed 2022 share.

D. 9% — severe underestimate.
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Question 4
The number of Mobile phones of Model-B in the year 2022 is approximately ____________% more than the number of Model-D Mobile phones in the year 2021.
The following table shows the percentage distribution of five different Models (A-E) of Mobile Phones produced by a company during the years 2021 and 2022. Total number of Mobile Phones produced by the company in 2021 and 2022 is 4,50,000 and 5,20,000, respectively.

Year-wise Percentage (%) Distribution of Model of Mobile Phones

Model/Year A B C D E
2021 15% 25% 30% 10% 20%
2022 10% 30% 25% 25% 10%
1. A240
2. B92
3. C128
4. D247
Answer: (D) 247
Explanation
Compute the production numbers for Model-B in 2022 and Model-D in 2021 to evaluate the percentage increase.

Model-B in 2022:
30% of 5,20,000 = 1,56,000 phones

Model-D in 2021:
10% of 4,50,000 = 45,000 phones

Absolute difference:
1,56,000 - 45,000 = 1,11,000 phones

Percentage more:
(1,11,000 / 45,000) * 100% = (111 / 45) * 100% = 246.67%

Rounding 246.67% to the nearest whole number gives 247%.

A. 240 — inaccurate approximation.

B. 92 — confusing base values.

C. 128 — incorrect calculation.

D. 247 — correct. 246.67% rounds to approximately 247%.
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Question 5
What is the ratio of the number of Mobile phones of Model-C,D and E in the year 2022 to the number of Mobile phones of Models B, C and D in the year 2021?
The following table shows the percentage distribution of five different Models (A-E) of Mobile Phones produced by a company during the years 2021 and 2022. Total number of Mobile Phones produced by the company in 2021 and 2022 is 4,50,000 and 5,20,000, respectively.

Year-wise Percentage (%) Distribution of Model of Mobile Phones

Model/Year A B C D E
2021 15% 25% 30% 10% 20%
2022 10% 30% 25% 25% 10%
1. A18:17
2. B25:19
3. C16:15
4. D14:15
Answer: (C) 16:15
Explanation
Sum the model counts for each group and simplify the resulting ratio.

2022 Models C, D, and E combined percentage:
25% + 25% + 10% = 60%

Total phones in 2022 for C, D, and E:
60% of 5,20,000 = 3,12,000 phones

2021 Models B, C, and D combined percentage:
25% + 30% + 10% = 65%

Total phones in 2021 for B, C, and D:
65% of 4,50,000 = 2,92,500 phones

Ratio:
3,12,000 : 2,92,500 = 3120 : 2925

Dividing by 195 gives:
16 : 15

A. 18:17 — incorrect ratio.

B. 25:19 — incorrect ratio.

C. 16:15 — correct. 3,12,000 to 2,92,500 reduces to 16:15.

D. 14:15 — incorrect ratio.
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Question 6
If Ram is not able to understand certain concept in a particular subject and is continuously performing poorly in that subject, which evaluation test will have to be conducted to know the cause of his difficulties?
1. APlacement Evaluation
2. BDiagnostic Evaluation
3. CSummative Evaluation
4. DFormative Evaluation
Answer: (B) Diagnostic Evaluation
Explanation
Diagnostic evaluation is specifically designed to identify recurring learning difficulties and diagnose their underlying causes so that remedial teaching can be planned.

A. Placement Evaluation — assesses entry-level knowledge and prerequisite skills before instruction starts.

B. Diagnostic Evaluation — correct. Uncovers the specific reasons behind persistent underperformance and conceptual gaps.

C. Summative Evaluation — judges terminal achievement and assigns grades at the conclusion of an instructional term.

D. Formative Evaluation — monitors day-to-day progress during the learning process to provide ongoing feedback.
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Question 7
Which of the following levels of teaching involves the highest order thinking skills?
1. AMemory level
2. BUnderstanding level
3. CReflective level
4. DAll levels involve similar thinking skills
Answer: (C) Reflective level
Explanation
Reflective level teaching represents the highest tier of the teaching-learning hierarchy, demanding critical thinking, creative problem-solving, and original decision-making.

A. Memory level — lowest tier focused purely on rote recall and retention of factual information.

B. Understanding level — intermediate tier centered on comprehension, generalization, and grasping principles.

C. Reflective level — correct. Engages learners in deep reflection, problem identification, and critical evaluation.

D. All levels involve similar thinking skills — incorrect because the three levels form a distinct cognitive hierarchy from simple recall to complex reflection.
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Question 8
Which of the following are the online tools used for creating and sharing mind maps?

A. Coogle
B. Flipgrid
C. Mindmeister
D. Google forms
E. Miro

Choose the correct answer from the options given below:
1. AA, C & E only
2. BB, D E only
3. CA & C only
4. DB & D only
Answer: (A) A, C & E only
Explanation
Mind mapping and visual brainstorming are supported by dedicated diagramming platforms.

A. Coogle — web application for generating structured visual mind maps and flowcharts.

B. Flipgrid — video discussion platform developed by Microsoft for video-based student responses, not mind mapping.

C. Mindmeister — collaborative online tool built specifically for visual mind mapping and brainstorming.

D. Google forms — survey and questionnaire collection tool, not a concept-mapping canvas.

E. Miro — digital visual collaboration platform offering mind-mapping templates, sticky notes, and diagramming boards.

Combining A, C, and E gives the correct set of mind-mapping tools.

A. A, C & E only — correct. Includes all three visual mind-mapping platforms.

B. B, D E only — includes Flipgrid and Google Forms which do not create mind maps.

C. A & C only — misses Miro, which fully supports mind mapping.

D. B & D only — pairs non-mind-mapping tools together.
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Question 9
Which of the following is an example of an inclusive learning environment?
1. AA classroom where students are expected to conform to strict set of rules and regulation.
2. BA classroom where only students of a certain ethnicity are allowed to participate in class discussion.
3. CA classroom where students are discouraged from asking questions or challenging the teacher's authority.
4. DA classroom where all the students are encouraged to share their unique experiences and perspectives.
Answer: (D) A classroom where all the students are encouraged to share their unique experiences and perspectives.
Explanation
An inclusive learning environment embraces diversity by validating each student's unique background, lived experience, and perspective.

A. A classroom where students are expected to conform to strict set of rules and regulation. — promotes rigid conformity rather than an adaptable, welcoming culture.

B. A classroom where only students of a certain ethnicity are allowed to participate in class discussion. — actively discriminatory and exclusionary.

C. A classroom where students are discouraged from asking questions or challenging the teacher's authority. — authoritarian climate that inhibits learner participation.

D. A classroom where all the students are encouraged to share their unique experiences and perspectives. — correct. Fosters mutual respect, belonging, and active participation for all learners.
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Question 10
Given below are two statements:

Statement I: Teaching at the understanding level involves encouraging students to think critically and reflect on their learning experience

Statement II: Teaching at the memory level involves rote memorization and does not encourage critical thinking.

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
Evaluate the defining pedagogical features of the understanding and memory levels of teaching.

Statement I is false — critical reflection on learning experiences is the defining mark of the reflective level (Hunt), whereas the understanding level (Morrison) focuses on grasping concepts and relationships.

Statement II is true — the memory level (Herbart) relies on rote recall and habitual drill, providing minimal scope for critical reflection.

A. Both Statement I and Statement II are true — incorrect because Statement I misattributes reflective teaching to the understanding level.

B. Both Statement I and Statement II are false — incorrect because Statement II accurately describes the memory level.

C. Statement I is true but Statement II is false — reverses the truth value of both statements.

D. Statement I is false but Statement II is true — correct. Statement I is inaccurate while Statement II is accurate.
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Question 11
Given below are two statements:

Statement I: In observational research, the variables are actively manipulated and the environment is as controlled as possible.

Statement II: Observational research allows you to eliminate the influence of many extraneous factors.

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: (B) Both Statement I and Statement II are false
Explanation
Observational research studies behavior in natural environments without intervention or artificial controls.

Statement I is false — active manipulation of independent variables in a controlled setting defines experimental research, whereas observational studies record spontaneous behavior without manipulation.

Statement II is false — because observational research occurs in uncontrolled settings without random assignment, extraneous factors cannot be eliminated.

A. Both Statement I and Statement II are true — incorrect because both statements mischaracterize observational methodology.

B. Both Statement I and Statement II are false — correct. Both statements attribute experimental control mechanisms to observational studies.

C. Statement I is true but Statement II is false — Statement I is clearly false.

D. Statement I is false but Statement II is true — Statement II is clearly false.
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Question 12
When the researcher's sex affect the behaviour of a participant in a study, it refers to
1. APsychosocial Effect
2. BPsychological Effect
3. CBiosocial Effect
4. DEnvironmental Effect
Answer: (C) Biosocial Effect
Explanation
In experimental research methodology, experimenter bias arising from biological or demographic attributes is termed a biosocial effect.

A. Psychosocial Effect — occurs when psychological traits or interpersonal behaviors of the experimenter (such as friendliness or hostility) affect the subject.

B. Psychological Effect — generic category not specific to demographic experimenter traits.

C. Biosocial Effect — correct. Denotes participant behavioral changes triggered by biological attributes of the researcher, such as sex, age, or race.

D. Environmental Effect — refers to ambient physical surroundings like room lighting, noise, or temperature.
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Question 13
Arrange the following scales of measurement from the simplest to the most evolved.

A. Ordinal
B. Nominal
C. Ratio
D. Interval

Choose the correct answer from the options given below:
1. AA, B, C, D
2. BB, C, A, D
3. CC, D, B, A
4. DB, A, D, C
Answer: (D) B, A, D, C
Explanation
Stevens' hierarchy of measurement scales orders data properties from lowest to highest mathematical refinement.

Hierarchy from simplest to most evolved:
B. Nominal — qualitative classification into distinct categories
A. Ordinal — ranks and orders categories without equal intervals
D. Interval — ranks with equal intervals but lacks a true absolute zero
C. Ratio — equal intervals with a true absolute zero point

Sequence:
B, A, D, C

A. A, B, C, D — places ordinal before nominal and ratio before interval.

B. B, C, A, D — incorrectly puts ratio second.

C. C, D, B, A — reverses the order from most evolved to simplest.

D. B, A, D, C — correct. Follows the standard Stevens hierarchy.
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Question 14
When studies on a given topic lead to similar conclusions, the measurements show
1. AConvergent Validity
2. BCriterion Validity
3. CDivergent Validity
4. DConstruct Validity
Answer: (A) Convergent Validity
Explanation
Convergent validity demonstrates that different measures or studies investigating the same underlying construct produce consistent, corresponding conclusions.

A. Convergent Validity — correct. Established when independent operationalizations of a theoretical construct align and converge on the same conclusion.

B. Criterion Validity — assesses how well a measure predicts an established external benchmark or real-world outcome.

C. Divergent Validity — verifies that tests of unrelated constructs do not correlate with each other.

D. Construct Validity — broad overarching concept that encompasses both convergent and divergent validity.
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Question 15
Which of the following p-values would signify that a sample correlation coefficient is significant at 1% level of significance?
1. A0.005
2. B0.02
3. C0.99
4. D0.95
Answer: (A) 0.005
Explanation
A statistical result is significant at the 1% significance level (alpha = 0.01) if its p-value is strictly less than or equal to 0.01.

Evaluating the options:
0.005 is less than 0.01, so the correlation is significant at the 1% level.

A. 0.005 — correct. Meets the threshold of p <= 0.01.

B. 0.02 — exceeds 0.01, so it is significant at the 5% level but not the 1% level.

C. 0.99 — very large p-value indicating no statistical significance.

D. 0.95 — very large p-value indicating no statistical significance.
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Question 16
Soaps, sit-coms and comics are part of
1. AHigh- brow culture
2. BMiddle-brow culture
3. CRestrictive culture
4. DPopular culture
Answer: (D) Popular culture
Explanation
Popular culture encompasses mass-produced cultural products designed for broad public consumption and entertainment, such as television soap operas, situation comedies, and comic books.

A. High- brow culture — refers to elite artistic and intellectual pursuits like classical opera, literature, and fine arts.

B. Middle-brow culture — accessible cultural products that aspire to high-culture refinement.

C. Restrictive culture — closed systems limiting cultural exchange and expression.

D. Popular culture — correct. Characterized by mass appeal, accessibility, and widespread media circulation.
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Question 17
The first highway of information is
1. ANewssheets
2. BTelegraph
3. CFilms
4. DInternet
Answer: (B) Telegraph
Explanation
The electric telegraph, developed in the 1830s and 1840s, was the world's first electronic telecommunication network and earned the historical title of the first information highway.

A. Newssheets — print-based medium that relied on physical transportation and could not transmit information instantly over long distances.

B. Telegraph — correct. Allowed rapid electrical transmission of encoded text over global distances, revolutionizing commerce and journalism.

C. Films — visual entertainment medium introduced much later in the late 19th century.

D. Internet — modern global packet-switching data network created in the late 20th century.
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Question 18
The main functions of mass media are to:

A. Make a society static
B. Inform
C. Educate
D. Persuade
E. Entertain

Choose the correct answer from the options given below:
1. AA, B, C only
2. BA, C, E only
3. CB, C, D, E only
4. DA, B, D only
Answer: (C) B, C, D, E only
Explanation
Mass communication theory recognizes four primary societal functions of the media: surveillance (informing), correlation (persuading/interpreting), cultural transmission (educating), and entertainment.

A. Make a society static — contrary to the media's role in driving social change and information flow.

B. Inform — core function of reporting news, alerts, and public affairs.

C. Educate — provides instructional content and broadens knowledge.

D. Persuade — influences public opinion through editorializing, advocacy, and advertising.

E. Entertain — provides leisure, stories, and cultural engagement.

Combining B, C, D, and E captures all legitimate functions of mass media.

A. A, B, C only — wrongly includes making society static.

B. A, C, E only — includes making society static and omits informing.

C. B, C, D, E only — correct. Encompasses the four foundational functions of mass media.

D. A, B, D only — incorrectly includes static society.
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Question 19
Given below are two statements:

Statement I: The digital technology has enabled increase in media consumption.

Statement II: Analog media are superior in quality, but do not have popular demand.

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
Assess the media shift from analog formats to digital communication networks.

Statement I is true — digital technology, smartphones, and on-demand streaming platforms have made media accessible everywhere, resulting in an unprecedented surge in total consumption hours.

Statement II is false — analog media suffer from physical wear, noise, and signal degradation over generations, whereas digital formats provide superior lossless reproduction, high dynamic range, and noise-free fidelity.

A. Both Statement I and Statement II are true — incorrect because Statement II falsely asserts the technological superiority of analog media.

B. Both Statement I and Statement II are false — incorrect because Statement I is demonstrably true.

C. Statement I is true but Statement II is false — correct. Digital technology drove media consumption while offering superior clarity and resilience over analog formats.

D. Statement I is false but Statement II is true — reverses both truth evaluations.
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Question 20
Given below are two statements:

Statement I: Communication can be a path to seek truth.

Statement II: Communication can also be used to suppress truth.

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
Communication serves dual roles depending on intent, ethics, and social control mechanisms.

Statement I is true — open dialogue, rational debate, scientific discourse, and dialectical questioning serve as essential tools to uncover and share factual truth.

Statement II is true — propaganda, censorship, deceptive rhetoric, and organized disinformation campaigns systematically employ communication channels to conceal or distort the truth.

A. Both Statement I and Statement II are true — correct. Communication possesses the capacity both to illuminate and to conceal reality.

B. Both Statement I and Statement II are false — denies the well-documented dual nature of communicative discourse.

C. Statement I is true but Statement II is false — ignores the widespread historical use of communication for propaganda and concealment.

D. Statement I is false but Statement II is true — ignores the epistemic role of communication in uncovering knowledge.
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Question 21
What number would replace question mark (?) in the series given below?

11,13,17,19,23, ?, 31, 37
1. A28
2. B25
3. C27
4. D29
Answer: (D) 29
Explanation
Identify the sequence rule governing the terms in the series: 11, 13, 17, 19, 23, ?, 31, 37.

The numbers are consecutive prime numbers:
11, 13, 17, 19, 23, 29, 31, 37

The prime number immediately following 23 and preceding 31 is 29.

A. 28 — composite number divisible by 2, 4, 7, and 14.

B. 25 — composite number divisible by 5.

C. 27 — composite number divisible by 3 and 9.

D. 29 — correct. The only prime number in the interval between 23 and 31.
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Question 22
The present age of the father of a boy is twice the age of the boy. Six years later the ratio of their ages will be 11:6. Find the present age the boy?
1. A30 years
2. B28 years
3. C25 years
4. D23 years
Answer: (A) 30 years
Explanation
Formulate linear equations based on the boy's current age and the given future age ratio.

Let the boy's present age be B.
The father's present age is 2B.

In 6 years:
Boy's age = B + 6
Father's age = 2B + 6

Set up the proportion:
(2B + 6) / (B + 6) = 11 / 6

Cross-multiply:
6 * (2B + 6) = 11 * (B + 6)
12B + 36 = 11B + 66
B = 30 years

A. 30 years — correct. At 30, the father is 60 — in 6 years they become 36 and 66, which reduces to 6:11.

B. 28 years — gives future ages of 34 and 62, yielding 31:17.

C. 25 years — gives future ages of 31 and 56.

D. 23 years — gives future ages of 29 and 52.
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Question 23
An amount of ₹ 2040 is to be divided among three friends x, y and z. The friend z is to be given 2/3rd of what y has to be given and y has to be given 1/4th of that of x. How much money will y recieve?
1. A₹360
2. B₹1440
3. C₹240
4. D₹600
Answer: (A) ₹360
Explanation
Express the shares of all three friends in terms of y's share and solve for the total sum.

Let y receive Y rupees.
z receives (2/3)Y.
Because y receives (1/4) of x, x receives 4Y.

Total sum:
4Y + Y + (2/3)Y = 2040
(17/3)Y = 2040
Y = (2040 * 3) / 17
Y = 120 * 3 = ₹360

A. ₹360 — correct. y receives ₹360, while x receives ₹1440 and z receives ₹240.

B. ₹1440 — represents the share received by x, not y.

C. ₹240 — represents the share received by z, not y.

D. ₹600 — incorrect calculation.
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Question 24
If in a certain coding language, PAINT is coded as 93546 and EXCEL is coded as 78271, then how will ACCEPT be coded in that language?
1. A322769
2. B322976
3. C232796
4. D322796
Answer: (D) 322796
Explanation
Map each letter directly to its assigned digit from the two sample code words.

Letter-to-digit assignments:
P = 9, A = 3, I = 5, N = 4, T = 6
E = 7, X = 8, C = 2, L = 1

Constructing ACCEPT:
A = 3
C = 2
C = 2
E = 7
P = 9
T = 6

Resulting code:
322796

A. 322769 — transposes the final two digits P and T.

B. 322976 — places digit 9 before 7.

C. 232796 — transposes the first two digits A and C.

D. 322796 — correct. Perfectly matches the assigned digits 3-2-2-7-9-6.
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Question 25
A sum of money doubles in 14 years. In how many years would it tripple if the rate of interest is considered as simple?
1. A25 years
2. B28 years
3. C18 years
4. D23 years
Answer: (B) 28 years
Explanation
Apply the simple interest formula where interest earned grows linearly with time.

Let the principal be P.
Doubling means interest earned equals P in 14 years:
P * R * 14 / 100 = P
R = 100 / 14 = 50/7%

Tripling means interest earned must equal 2P:
P * R * T / 100 = 2P
R * T / 100 = 2
T = 200 / R = 200 / (50/7) = 28 years

A. 25 years — incorrect time period.

B. 28 years — correct. Earning 1P interest takes 14 years, so earning 2P interest takes exactly 28 years.

C. 18 years — incorrect time period.

D. 23 years — incorrect time period.
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Question 26
Identify the common pattern of deductive reasoning in the following argument:

"If we don't stop for gas soon, then we will run out of gas. If we run out of gas, then we will be late for the wedding. Therefore, if we don't stop for gas soon we will be late for wedding"
1. ADenying the consequent
2. BAffirming the consequent
3. CDenying the antecedent
4. DChain argument
Answer: (D) Chain argument
Explanation
A chain argument — formally known as a hypothetical syllogism — links two conditional premises together through a shared intermediate proposition to deduce a new conditional conclusion.

Logical structure:
If P, then Q.
If Q, then R.
Therefore, if P, then R.

A. Denying the consequent — Modus Tollens inference form: If P then Q, not Q, therefore not P.

B. Affirming the consequent — formal fallacy of concluding the antecedent from the consequent: If P then Q, Q, therefore P.

C. Denying the antecedent — formal fallacy of concluding the negation of the consequent: If P then Q, not P, therefore not Q.

D. Chain argument — correct. Links the intermediate consequence of running out of gas into a continuous deductive chain.
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Question 27

Match List I with List II:

LIST I (Hetvabhasa)	LIST II (Example)
A. Āśrayāsiddha	I. Sound is eternal because it is audible
B. Vyāptatvāsiddha	II. Sky lotus is fragrant because it a lotus like the lotus of lake
C. Svarūpāsiddha	III. Wherever there is fire there is smoke
D. Asādhāraṇa Savyābhichāra	IV. Sound is a quality because it is visible

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

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

Explanation

Match each Hetvabhasa (fallacy of the middle term in Nyaya logic) with its illustrative example.

Resolved mapping:
A-II, B-III, C-IV, D-I

A. Āśrayāsiddha (II) — occurs when the minor term (locus/paksha) is fictitious, as in "Sky lotus is fragrant because it a lotus like the lotus of lake" where a sky lotus does not exist.
B. Vyāptatvāsiddha (III) — occurs when the universal concomitance (vyapti) between middle and major terms is conditional or unproved, as in "Wherever there is fire there is smoke" which fails for red-hot iron balls.
C. Svarūpāsiddha (IV) — occurs when the middle term does not exist in the locus by its very nature, as in "Sound is a quality because it is visible" since sound is audible, not visible.
D. Asādhāraṇa Savyābhichāra (I) — unique middle term fallacy where the hetu exists exclusively in the paksha and nowhere else, as in "Sound is eternal because it is audible".
A. A-IV, B-I, C-II, D-III — incorrect mapping.
B. A-I, B-II, C-III, D-IV — incorrect mapping.
C. A-III, B-II, C-I, D-IV — incorrect mapping.
D. A-II, B-III, C-IV, D-I — correct. Accurately pairs each Nyaya fallacy with its canonical classical example.

Question 28
Observe the following argument and pick the correct answer.

"All pigs are sheep
All sheep are goat
Therefore, all pigs are goats"

A. A valid argument because if the premises were true the conclusion would have been true.
B. An invalid argument because the conclusion does not follow from the premises.
C. The conclusion is probably true.
D. It is a weak argument.

Choose the correct answer from the options given below:
1. AA only
2. BB & D only
3. CC & D only
4. DD only
Answer: (A) A only
Explanation
In deductive logic, validity is strictly a structural property rather than a factual one. An argument is valid if its premises structurally necessitate the conclusion.

Syllogistic form (Barbara AAA-1):
All M are P.
All S are M.
Therefore, all S are P.

Because the conclusion follows with absolute structural necessity whenever the premises are assumed true, the argument is deductively valid regardless of empirical falsity.

A. A only — correct. Accurately states that the argument is valid because true premises would guarantee a true conclusion.

B. B & D only — incorrect because the argument is deductively valid and deductive arguments are not evaluated as weak.

C. C & D only — confuses deductive validity with inductive probability.

D. D only — strength and weakness apply to inductive arguments, not deductive syllogisms.
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Question 29
Given below are two statements: one is labelled as Assertion A and other is labelled as Reason R

Assertion (A): Atyantābhāva is eternal.

Reason (R): If a particular thing does not exist in a particular locus at any time, then it is said that there is Atyantābhāva of that thing.

In the 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 and 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 Nyaya metaphysics, Atyantabhava signifies absolute non-existence — the total absence of a relation between two entities across all three divisions of time (past, present, and future).

Assertion (A) is true — Atyantabhava has neither beginning nor end, making it eternal (nitya).

Reason (R) is true — absolute non-existence means a thing never exists in that locus at any time, such as the absence of color in air.

Because Atyantabhava is characterized by timeless non-existence in all three periods of time, Reason (R) directly explains why it is eternal.

A. Both A and R are true and R is the correct explanation of A — correct. Absolute absence across all time explains why Atyantabhava is eternal.

B. Both A and R are true and R is NOT the correct explanation of A — overlooks the direct causal explanation linking timeless absence to eternality.

C. A is true but R is false — Reason (R) correctly defines Atyantabhava.

D. A is false but R is true — Assertion (A) is an established Nyaya tenet.
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Question 30
'Fire is cold because it is a substance' represents which of the following Hetvābhāsa?
1. AViruddha
2. BBādhita
3. CAsiddha
4. DSavyābhichāra
Answer: (B) Bādhita
Explanation
In Nyaya epistemology, Badhita (the non-inferentially contradicted middle) occurs when an inference's probandum (sadhya) is directly refuted by a stronger, non-inferential source of valid knowledge.

Evaluating the inference:
We know through direct sense perception (pratyaksha) that fire is hot.
Therefore, the thesis that fire is cold is directly contradicted by perception, making it Badhita.

A. Viruddha — contradictory middle that actually proves the opposite of the probandum.

B. Bādhita — correct. The conclusion is refuted by direct tactile perception.

C. Asiddha — unproved middle term whose presence in the paksha is unestablished.

D. Savyābhichāra — irregular or inconclusive middle term that wanders into contrary instances.
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Question 31
Computers have evolved from the early mainframe computers to the relatively small smart devices with high computing power being used today. Which of the following inventions contributed to reduce the physical size of computers?
1. AVacuum Tubes
2. BTransistors
3. CIntegrated Circuits
4. DCathode Ray Tube
Answer: (C) Integrated Circuits
Explanation
The development of the Integrated Circuit (IC) allowed engineers to combine thousands and eventually billions of transistors, resistors, and capacitors onto a single miniature semiconductor chip, driving computer miniaturization.

A. Vacuum Tubes — bulky, power-hungry glass tubes that made first-generation computers occupy entire rooms.

B. Transistors — reduced size from vacuum tubes but still required discrete wiring for individual components.

C. Integrated Circuits — correct. Miniaturized entire circuits onto silicon chips, enabling modern microcomputers and compact smart devices.

D. Cathode Ray Tube — bulky analog display technology, not an invention for miniaturizing computer processors.
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Question 32
Consider two binary numbers P=10110001 and Q=01001110. If X=P or Q and Y=P and Q, then what will be the values of X and Y respectively?
1. A01001110,10110001
2. B10110001,00000000
3. C10110001,11111111
4. D11111111,00000000
Answer: (D) 11111111,00000000
Explanation
Execute bitwise logical operations between binary numbers P and Q.

Bitwise OR (X = P OR Q):
P = 1 0 1 1 0 0 0 1
Q = 0 1 0 0 1 1 1 0
X = 1 1 1 1 1 1 1 1

Bitwise AND (Y = P AND Q):
P = 1 0 1 1 0 0 0 1
Q = 0 1 0 0 1 1 1 0
Y = 0 0 0 0 0 0 0 0

Values:
X = 11111111 and Y = 00000000

A. 01001110,10110001 — merely restates Q and P.

B. 10110001,00000000 — incorrect result for X.

C. 10110001,11111111 — inverts the logical operations.

D. 11111111,00000000 — correct. Bitwise OR yields all ones and bitwise AND yields all zeros.
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Question 33
Given below are two statements:

Statement I: Using 3D printers, prosthetic limbs can be made to exactly fit the recipient.

Statement II: OLEDs consume more power than LCD/LED formats and thus produce more heat.

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
Evaluate the technological characteristics of 3D printing and OLED display panels.

Statement I is true — 3D printing enables precision scanning and custom additive fabrication of prosthetic sockets and limbs to match a patient's exact anatomical dimensions.

Statement II is false — OLED pixels emit their own light and shut off entirely for black pixels without a continuous CCFL or LED backlight, typically consuming less power and producing less heat than legacy LCD panels.

A. Both Statement I and Statement II are true — incorrect because Statement II mischaracterizes OLED energy efficiency.

B. Both Statement I and Statement II are false — incorrect because Statement I accurately describes 3D printing capabilities.

C. Statement I is true but Statement II is false — correct. 3D printing creates exact-fit prosthetics while OLEDs operate with high energy efficiency.

D. Statement I is false but Statement II is true — reverses both evaluations.
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Question 34
Which of the following statements are valid?

A. Providing the personal information of customers stored in a computer to an insurance agent by the vehicle servicing centre is an issue related to the privacy of customer.
B. Providing a copy of a single-user licensed software to another party is a piracy issue related to the ownership of the software.
C. Unauthorized access to another person's computer is both illegal and unethical.
D. The 'right to use' a piece of software is termed as Copyright

Choose the correct answer from the options given below:
1. AA & D only
2. BB & C only
3. CB & D only
4. DA, B & C only
Answer: (D) A, B & C only
Explanation
Examine information security ethics, software licensing, and intellectual property terms.

A is valid — sharing customer records with external third parties without consent is a direct breach of data privacy.

B is valid — distributing copies of software licensed for a single user violates licensing agreements and constitutes software piracy.

C is valid — unauthorized access to systems (hacking or data intrusion) violates cyber laws and ethical codes.

D is invalid — the legal right to use software is termed a Software License (or EULA), whereas copyright refers to the creator's exclusive legal ownership rights.

Statements A, B, and C are valid.

A. A & D only — includes statement D which misidentifies copyright.

B. B & C only — omits valid statement A.

C. B & D only — includes statement D and omits A and C.

D. A, B & C only — correct. Accurately groups the three valid ethical and legal statements.
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Question 35

Match List I with List II:

LIST I (Internet Term)	LIST II (Description)
A. Browser	I. Protocol that is used to send data for web pages across the internet
B. HTTPS	II. A text-file (stored by web browser) that contains data about a user's browsing preferences
C. URL	III. Software that allows users to view web page
D. Cookie	IV. A text-based version of a web address

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

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

Explanation

Match each internet term with its correct technical description.

Resolved mapping:
A-III, B-I, C-IV, D-II

A. Browser (III) — client software application that retrieves and displays web pages.
B. HTTPS (I) — secure network protocol used to send encrypted web pages and data across the internet.
C. URL (IV) — uniform resource locator providing a text-based address for web resources.
D. Cookie (II) — small text file stored by the browser containing browsing preferences and session state.
A. A-II, B-I, C-IV, D-III — misidentifies browser as cookie.
B. A-III, B-IV, C-I, D-II — misidentifies HTTPS as URL.
C. A-I, B-III, C-II, D-IV — incorrect mapping.
D. A-III, B-I, C-IV, D-II — correct. Accurately pairs each networking concept with its definition.

Question 36
Air Quality Index (AQI) is represented in
1. AUnit of μg/m³ (microgram per meter cube)
2. BUnit of ppm
3. CPercentage (%)
4. DNumbers
Answer: (D) Numbers
Explanation
The Air Quality Index (AQI) translates complex pollutant concentrations into a single dimensionless number (typically ranging from 0 to 500) to easily inform the public about air health risks.

A. Unit of μg/m³ (microgram per meter cube) — raw concentration metric for particulate matter (PM2.5, PM10), not the composite AQI value.

B. Unit of ppm — concentration metric for trace gases like carbon monoxide and ozone.

C. Percentage (%) — unit of relative proportion, not the AQI scale.

D. Numbers — correct. AQI is an arbitrary, unitless numerical score.
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Question 37
Given below are two statements:

Statement I: Concentration of Formaldehyde in indoor environment can be thousand times higher than outdoor environment.

Statement II: Formaldehyde is a known carcinogen.

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
Examine indoor air pollutant dynamics and health classifications for formaldehyde.

Statement I is true — formaldehyde is emitted indoors by adhesives, pressed-wood furniture, resins, and insulation, accumulating in poorly ventilated spaces to levels up to a thousand times greater than ambient outdoor air.

Statement II is true — the International Agency for Research on Cancer (IARC) and the WHO classify formaldehyde as a Group 1 known human carcinogen linked to nasopharyngeal cancer and leukemia.

A. Both Statement I and Statement II are true — correct. Recognizes high indoor formaldehyde accumulation and its carcinogenic status.

B. Both Statement I and Statement II are false — contradicts established toxicology.

C. Statement I is true but Statement II is false — ignores carcinogenic classification.

D. Statement I is false but Statement II is true — ignores indoor off-gassing concentration spikes.
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Question 38
In water treatment Aeration is the process which
1. ARemoves excess and objectionable gases
2. BReadjusts the pH of water
3. CRemoves the large particles of floc from water
4. DRemoves the solid particles
Answer: (A) Removes excess and objectionable gases
Explanation
Aeration exposes water to air to facilitate gas transfer, stripping dissolved volatile compounds and offensive gases.

A. Removes excess and objectionable gases — correct. Strips dissolved hydrogen sulfide, methane, carbon dioxide, and volatile organic compounds while adding dissolved oxygen.

B. Readjusts the pH of water — accomplished via chemical neutralization using lime, soda ash, or acids.

C. Removes the large particles of floc from water — performed by sedimentation and clarification basins.

D. Removes the solid particles — accomplished through coarse screening and media filtration.
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Question 39
Which of the following are classified as hazardous substances?

A. Activated substances
B. Ignitable substances
C. Corrosive substances
D. Reactive substances
E. Toxic substances

Choose the correct answer from the options given below:
1. AA, B, C, D only
2. BB, C, D, E only
3. CA, C, D, E only
4. DA, B, D, E only
Answer: (B) B, C, D, E only
Explanation
Under standard environmental regulatory frameworks (such as the EPA RCRA criteria), hazardous wastes are classified based on four characteristic properties: Ignitability, Corrosivity, Reactivity, and Toxicity (ICR-T).

Evaluating the items:

B. Ignitable substances — catch fire easily

C. Corrosive substances — corrode metal or burn organic tissue

D. Reactive substances — unstable and prone to explosive reactions

E. Toxic substances — harmful or fatal when ingested or absorbed

Activated substances (A) is not a regulatory category of hazardous waste.

A. A, B, C, D only — wrongly includes activated substances.

B. B, C, D, E only — correct. Encompasses all four defining hazardous characteristics.

C. A, C, D, E only — includes activated substances and omits ignitable.

D. A, B, D, E only — includes activated substances and omits corrosive.
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Question 40
What is the limit of water availability for a region to be classified as water-stressed region?
1. ALess than 1700 m³/person/year
2. BLess than 2000 m³/person/year
3. CLess than 2300 m³/person/year
4. DLess than 2500 m³/person/year
Answer: (A) Less than 1700 m³/person/year
Explanation
The Falkenmark Water Stress Indicator establishes standard hydrological thresholds for measuring regional freshwater availability per capita per year.

Falkenmark thresholds:

Water stress: less than 1700 m³ per person per year

Water scarcity: less than 1000 m³ per person per year

Absolute water scarcity: less than 500 m³ per person per year

A. Less than 1700 m³/person/year — correct. Matches the benchmark defining water stress.

B. Less than 2000 m³/person/year — above the water stress index threshold.

C. Less than 2300 m³/person/year — above the water stress index threshold.

D. Less than 2500 m³/person/year — above the water stress index threshold.
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Question 41
Among the following skills, which are considered as soft skills?

A. Decision making
B. Marketing
C. Communication
D. Conflict resolution
E. Leadership

Choose the correct answer from the options given below:
1. AB & E only
2. BA, C & E only
3. CA, C, D & E only
4. DB & D only
Answer: (C) A, C, D & E only
Explanation
Soft skills are non-technical interpersonal attributes, emotional intelligence traits, and cognitive behavioral habits.

A. Decision making — soft skill involving problem appraisal and judgment.

B. Marketing — hard technical domain skill requiring specialized industry knowledge and commercial execution.

C. Communication — core interpersonal soft skill for clear expression and active listening.

D. Conflict resolution — interpersonal soft skill for mediating disputes.

E. Leadership — behavioral soft skill for motivating and guiding teams.

Combining A, C, D, and E gives the full set of soft skills.

A. B & E only — incorrectly treats marketing as a soft skill.

B. A, C & E only — omits conflict resolution.

C. A, C, D & E only — correct. Groups all four interpersonal and cognitive soft skills.

D. B & D only — incorrectly pairs marketing with conflict resolution.
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Question 42
Which of the following are recommendations of the NEP2020 for improving the quality of higher education in India?

A. Introduction of National Research Foundation.
B. Accreditation of all higher education institutions
C. Integration of Vocational education into mainstream education.
D. Establishment of National Higher Education Qualification Framework.

Choose the correct answer from the options given below:
1. AA & B only
2. BC & D only
3. CA, B & D only
4. DA, B, C & D
Answer: (D) A, B, C & D
Explanation
National Education Policy (NEP) 2020 outlines comprehensive structural reforms across higher education in India.

Key policy recommendations:

A. National Research Foundation (NRF) to cultivate a culture of research and funding

B. Universal accreditation of all higher education institutions through a single meta-accrediting framework

C. Integration of vocational education into mainstream academia to bridge skill gaps

D. Formulation of the National Higher Education Qualifications Framework (NHEQF)

All four measures are central pillars of NEP 2020 higher education policy.

A. A & B only — omits vocational integration and the NHEQF.

B. C & D only — omits NRF and accreditation reforms.

C. A, B & D only — omits vocational education integration.

D. A, B, C & D — correct. Captures the complete set of NEP 2020 higher education recommendations.
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Question 43
UGC was established on the recommendation of-
1. AUniversity Education Commission
2. BHigher Education Commission
3. CMinistry of Education
4. DPlanning Commission
Answer: (A) University Education Commission
Explanation
The University Education Commission (1948–49), chaired by Dr. S. Radhakrishnan, recommended establishing a University Grants Committee to allocate central funds and supervise national standards in higher education.

A. University Education Commission — correct. Recommended the body following the model of the British University Grants Committee, leading to UGC's formation in 1953 and statutory status in 1956.

B. Higher Education Commission — contemporary regulatory body proposed under NEP 2020, not the historical commission of 1948.

C. Ministry of Education — executive ministry that implemented the recommendation, not the commission that originated it.

D. Planning Commission — focused on national economic planning rather than university education standards.
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Question 44
Which of the following is incorrect in the light of the effects of the expansion of higher education from the mid 1850s.

A. Curzon's universities reform were a high point in the development of the official attitude towards the spread of higher education.
B. The attempts were part of the wider programme of reforming Indian society and purging out of evils such as sati etc.
C. Two universities in Calcutta and Madras were established in 1857 and colleges became an integrate part of higher education.
D. Only those students were admitted to the colleges who had passed the entrance.

Choose the correct answer from the options given below:
1. AA & B
2. BB & C
3. CC & D
4. DB & D
Answer: (B) B & C
Explanation
Identify historically incorrect statements regarding the expansion of colonial higher education after Wood's Despatch (1854).

Evaluating the statements:

Statement B is incorrect — the abolition of sati occurred in 1829 under Lord William Bentinck, several decades before the mid-1850s university expansion.

Statement C is incorrect — three universities were established in 1857 (Calcutta, Bombay, and Madras), not merely two.

Statement A is historically accurate — Lord Curzon's 1904 University Reforms marked the culmination of colonial state regulation of university education.

Statement D is historically accurate — collegiate admission was strictly restricted to candidates passing the university entrance examination.

Because B and C are incorrect, option B is the required selection.

A. A & B — includes historically sound statement A.

B. B & C — correct. Identifies both historically incorrect statements.

C. C & D — includes historically sound statement D.

D. B & D — includes historically sound statement D.
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Question 45
Given below are two statements:

Statement I: In the Vedic age both men and women had access to education.

Statement II: Woods Despatch (1854) recognised for the first time that the Government should give 'frank and cordial support' to female education.

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
Review educational access across ancient India and colonial policy milestones.

Statement I is true — in the early Vedic period, women underwent the Upanayana ceremony, studied sacred texts, and attained scholarship as Brahmavadinis (such as Gargi and Maitreyi).

Statement II is true — Wood's Despatch (1854) explicitly recommended that the British government provide "frank and cordial support" to female education through grants-in-aid and state encouragement.

A. Both Statement I and Statement II are true — correct. Both statements reflect verified historical facts.

B. Both Statement I and Statement II are false — contradicts historical records of Vedic society and colonial dispatches.

C. Statement I is true but Statement II is false — ignores Wood's Despatch's explicit stance on female education.

D. Statement I is false but Statement II is true — overlooks female educational access in the Vedic age.
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Question 46
In the passage 'natal kin' refers to

A. Stranger
B. Parents
C. Neighbours
D. Close relatives
E. Brother and Sister

Choose the correct answer:
Violence against women comes in many forms and from various sources. One that is not highlighted enough is the violence they face from their birth family or natal kin-parents, siblings or close relatives. New Delhi based non-governmental organisation (NGO) Shakti Shalini recently brought out an incisive report, Unkahi-the Unspoken, documenting the rise of violence against women from natal families during the pandemic.

Normally, the natal family is the one a woman turns to for help, but during the pandemic, staying at home did not always mean staying safe for many women. A woman complaining about violence from a partner is more easily believable than one who makes such a allegations against her family conditioned as we are to the concept that elders and immediate kin offer protection and physical and emotional safety. So, to name and shame them is not easy.

Shakti Shalini's study was based on women who approached the NGO for help during the pandemic and encompassed those between 18 and 27 years, with 65% of them belonging to the 22-27 age group. A majority of these women belong to the working and lower middle classes.

Media reports during the pandemic highlighted the increase in the incidence of marital violence, but single women living with their natal families had similar experiences. The honorary secretary of Shakti Shalini, says, "Natal family violence is a phenomenon which is structurally based in our society and therefore, needs a structural approach. Though our society lays a claim on the integrity of 'family as a cohesive unit', it equally needs to be accepted that family is as much an environment of abuse of its vulnerable members especially girls and women,"

The women spoke of abusive and coercive behaviour from their natal families and all of them reported emotional abuse and psychological trauma. Fifteen out of 20 women in the study faced physical and verbal violence that included being slapped. Three women reported physical abuse while one was threatened with forced marriage. In terms of the identity of the person who caused harm, in 60% of the cases, it was both male and female relatives.
1. AA, B & D only
2. BC, D & E only
3. CB, D & E only
4. DA, B & E only
Answer: (C) B, D & E only
Explanation
The opening paragraph explicitly defines natal kin as birth family members: "their birth family or natal kin-parents, siblings or close relatives."

Evaluating the items:

B. Parents — explicitly stated in the text

D. Close relatives — explicitly stated in the text

E. Brother and Sister — corresponds directly to siblings

Strangers (A) and neighbours (C) do not belong to the birth family.

A. A, B & D only — incorrectly includes strangers.

B. C, D & E only — incorrectly includes neighbours.

C. B, D & E only — correct. Corresponds precisely to parents, close relatives, and siblings.

D. A, B & E only — incorrectly includes strangers.
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Question 47
Shakti Shalini is
Violence against women comes in many forms and from various sources. One that is not highlighted enough is the violence they face from their birth family or natal kin-parents, siblings or close relatives. New Delhi based non-governmental organisation (NGO) Shakti Shalini recently brought out an incisive report, Unkahi-the Unspoken, documenting the rise of violence against women from natal families during the pandemic.

Normally, the natal family is the one a woman turns to for help, but during the pandemic, staying at home did not always mean staying safe for many women. A woman complaining about violence from a partner is more easily believable than one who makes such a allegations against her family conditioned as we are to the concept that elders and immediate kin offer protection and physical and emotional safety. So, to name and shame them is not easy.

Shakti Shalini's study was based on women who approached the NGO for help during the pandemic and encompassed those between 18 and 27 years, with 65% of them belonging to the 22-27 age group. A majority of these women belong to the working and lower middle classes.

Media reports during the pandemic highlighted the increase in the incidence of marital violence, but single women living with their natal families had similar experiences. The honorary secretary of Shakti Shalini, says, "Natal family violence is a phenomenon which is structurally based in our society and therefore, needs a structural approach. Though our society lays a claim on the integrity of 'family as a cohesive unit', it equally needs to be accepted that family is as much an environment of abuse of its vulnerable members especially girls and women,"

The women spoke of abusive and coercive behaviour from their natal families and all of them reported emotional abuse and psychological trauma. Fifteen out of 20 women in the study faced physical and verbal violence that included being slapped. Three women reported physical abuse while one was threatened with forced marriage. In terms of the identity of the person who caused harm, in 60% of the cases, it was both male and female relatives.
1. AA Government Organization
2. BA Trust
3. CA Research Institute
4. DA Non-Governmental Organization
Answer: (D) A Non-Governmental Organization
Explanation
The second sentence of the passage directly identifies Shakti Shalini as a "New Delhi based non-governmental organisation (NGO)".

A. A Government Organization — contradicted by its status as an independent NGO.

B. A Trust — not the entity designation specified in the text.

C. A Research Institute — while it published a study, its organizational form is an NGO.

D. A Non-Governmental Organization — correct. Directly matches the passage text.
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Question 48
All statements related to Shakti Shalini study are true except
Violence against women comes in many forms and from various sources. One that is not highlighted enough is the violence they face from their birth family or natal kin-parents, siblings or close relatives. New Delhi based non-governmental organisation (NGO) Shakti Shalini recently brought out an incisive report, Unkahi-the Unspoken, documenting the rise of violence against women from natal families during the pandemic.

Normally, the natal family is the one a woman turns to for help, but during the pandemic, staying at home did not always mean staying safe for many women. A woman complaining about violence from a partner is more easily believable than one who makes such a allegations against her family conditioned as we are to the concept that elders and immediate kin offer protection and physical and emotional safety. So, to name and shame them is not easy.

Shakti Shalini's study was based on women who approached the NGO for help during the pandemic and encompassed those between 18 and 27 years, with 65% of them belonging to the 22-27 age group. A majority of these women belong to the working and lower middle classes.

Media reports during the pandemic highlighted the increase in the incidence of marital violence, but single women living with their natal families had similar experiences. The honorary secretary of Shakti Shalini, says, "Natal family violence is a phenomenon which is structurally based in our society and therefore, needs a structural approach. Though our society lays a claim on the integrity of 'family as a cohesive unit', it equally needs to be accepted that family is as much an environment of abuse of its vulnerable members especially girls and women,"

The women spoke of abusive and coercive behaviour from their natal families and all of them reported emotional abuse and psychological trauma. Fifteen out of 20 women in the study faced physical and verbal violence that included being slapped. Three women reported physical abuse while one was threatened with forced marriage. In terms of the identity of the person who caused harm, in 60% of the cases, it was both male and female relatives.
1. AIt was based on violence against women from natal families during the pandemic.
2. BIt was the result of women approaching Shakti Shalini for help.
3. CIt concluded that 75% women faced physical and verbal violence.
4. DIt found that person responsible for violence were only men.
Answer: (D) It found that person responsible for violence were only men.
Explanation
Verify each assertion against the passage to locate the single false statement.

A is true — the study documented the rise of violence against women from natal families during the pandemic.

B is true — the passage notes the study was based on women who approached the NGO for help.

C is true — 15 out of 20 women faced physical and verbal violence, which equals exactly 75%.

D is false — the final sentence states that in 60% of cases, harm was caused by "both male and female relatives", disproving the claim that only men were responsible.

A. It was based on violence against women from natal families during the pandemic. — accurate passage statement.

B. It was the result of women approaching Shakti Shalini for help. — accurate passage statement.

C. It concluded that 75% women faced physical and verbal violence. — accurate passage calculation.

D. It found that person responsible for violence were only men. — correct exception. Contradicts the finding that both male and female relatives caused harm.
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Question 49
Two statements are given:

Statement I: The majority of women in Shakti Shalini study belonged to the working and lower middle classes.

Statement II: Women are protected in their natal families.

In the light of these statements, choose the correct answer:
Violence against women comes in many forms and from various sources. One that is not highlighted enough is the violence they face from their birth family or natal kin-parents, siblings or close relatives. New Delhi based non-governmental organisation (NGO) Shakti Shalini recently brought out an incisive report, Unkahi-the Unspoken, documenting the rise of violence against women from natal families during the pandemic.

Normally, the natal family is the one a woman turns to for help, but during the pandemic, staying at home did not always mean staying safe for many women. A woman complaining about violence from a partner is more easily believable than one who makes such a allegations against her family conditioned as we are to the concept that elders and immediate kin offer protection and physical and emotional safety. So, to name and shame them is not easy.

Shakti Shalini's study was based on women who approached the NGO for help during the pandemic and encompassed those between 18 and 27 years, with 65% of them belonging to the 22-27 age group. A majority of these women belong to the working and lower middle classes.

Media reports during the pandemic highlighted the increase in the incidence of marital violence, but single women living with their natal families had similar experiences. The honorary secretary of Shakti Shalini, says, "Natal family violence is a phenomenon which is structurally based in our society and therefore, needs a structural approach. Though our society lays a claim on the integrity of 'family as a cohesive unit', it equally needs to be accepted that family is as much an environment of abuse of its vulnerable members especially girls and women,"

The women spoke of abusive and coercive behaviour from their natal families and all of them reported emotional abuse and psychological trauma. Fifteen out of 20 women in the study faced physical and verbal violence that included being slapped. Three women reported physical abuse while one was threatened with forced marriage. In terms of the identity of the person who caused harm, in 60% of the cases, it was both male and female relatives.
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
Assess each statement against the factual claims presented in the text.

Statement I is true — the third paragraph explicitly states: "A majority of these women belong to the working and lower middle classes."

Statement II is false — the entire report demonstrates that during the pandemic, natal homes became sites of severe coercion, verbal abuse, and physical violence, directly refuting the assumption of universal protection.

A. Both Statement I and Statement II are true — incorrect because Statement II is directly challenged by the passage's core findings.

B. Both Statement I and Statement II are false — incorrect because Statement I is directly asserted in paragraph three.

C. Statement I is true but Statement II is false — correct. Statement I reflects explicit text while Statement II is contradicted by the study.

D. Statement I is false but Statement II is true — reverses both evaluations.
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Question 50
Natal family violence is difficult to believe in because

A. The family is seen as a cohesive unit.
B. Women turn to the natal family for help.
C. It is believed that elders and kin offer emotional and physical safety.
D. Naming and shaming the natal family is easy.
E. Women in the family support them.

Choose the correct answer:
Violence against women comes in many forms and from various sources. One that is not highlighted enough is the violence they face from their birth family or natal kin-parents, siblings or close relatives. New Delhi based non-governmental organisation (NGO) Shakti Shalini recently brought out an incisive report, Unkahi-the Unspoken, documenting the rise of violence against women from natal families during the pandemic.

Normally, the natal family is the one a woman turns to for help, but during the pandemic, staying at home did not always mean staying safe for many women. A woman complaining about violence from a partner is more easily believable than one who makes such a allegations against her family conditioned as we are to the concept that elders and immediate kin offer protection and physical and emotional safety. So, to name and shame them is not easy.

Shakti Shalini's study was based on women who approached the NGO for help during the pandemic and encompassed those between 18 and 27 years, with 65% of them belonging to the 22-27 age group. A majority of these women belong to the working and lower middle classes.

Media reports during the pandemic highlighted the increase in the incidence of marital violence, but single women living with their natal families had similar experiences. The honorary secretary of Shakti Shalini, says, "Natal family violence is a phenomenon which is structurally based in our society and therefore, needs a structural approach. Though our society lays a claim on the integrity of 'family as a cohesive unit', it equally needs to be accepted that family is as much an environment of abuse of its vulnerable members especially girls and women,"

The women spoke of abusive and coercive behaviour from their natal families and all of them reported emotional abuse and psychological trauma. Fifteen out of 20 women in the study faced physical and verbal violence that included being slapped. Three women reported physical abuse while one was threatened with forced marriage. In terms of the identity of the person who caused harm, in 60% of the cases, it was both male and female relatives.
1. AA, D & E only
2. BB & C only
3. CA, B & C only
4. DB, D & E only
Answer: (C) A, B & C only
Explanation
Identify the factors explaining why natal family violence is difficult for society to believe, as articulated in paragraphs two and four.

Textual evidence:

A is cited — "society lays a claim on the integrity of 'family as a cohesive unit'"

B is cited — "Normally, the natal family is the one a woman turns to for help"

C is cited — "conditioned as we are to the concept that elders and immediate kin offer protection and physical and emotional safety"

In contrast, D is refuted ("to name and shame them is not easy") and E is contradicted by female relatives participating in the violence in 60% of cases.

Therefore, A, B, and C explain the difficulty in acknowledging this violence.

A. A, D & E only — incorrectly includes D and E which are contradicted by the text.

B. B & C only — omits the societal belief in the cohesive family unit (A).

C. A, B & C only — correct. Combines the three cultural assumptions cited in the passage.

D. B, D & E only — includes refuted statements D and E.
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100 questions with the answer key and explanations.

Question 1
Given below are two statements:

Assertion (A): "Promise is an agreement"
Reason (R): "An agreement is the sum total of offer and 'acceptance"

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. 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
Under Section 2(e) of the Indian Contract Act, 1872, every promise and every set of promises forming the consideration for each other is an agreement.

An agreement is created when an offer made by one party is unconditionally accepted by the other. Section 2(b) defines a proposal when accepted as becoming a promise, making offer plus acceptance the foundation of the agreement.

A. Both A and R are correct and R is the correct explanation of A — correct. Reason (R) defines how mutual assent forms the agreement referred to in Assertion (A).

B. Both A and R are correct but R is NOT the correct explanation of A — incorrect because the definition in Reason directly explains how promises constitute an agreement.

C. A is correct but R is not correct — incorrect because Reason accurately captures offer and acceptance.

D. A is not correct but R is correct — incorrect because accepted promises legally constitute an agreement.
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Question 2
The potential benefit of FDI to host countries include which of the following:

A. Access to superior technology and increased competition
B. Employment generation
C. Increase in domestic investments
D. Bridging host countries foreign exchange gaps
E. Reduction in income inequality

Choose the correct answer from the options given below:
1. AB, D, E only
2. BA, B, E only
3. CC, E, D only
4. DA, C, D only
Answer: (D) A, C, D only
Explanation
Foreign Direct Investment provides host developing economies with non-debt external capital, superior managerial knowledge, and spillover technology.

Technology transfer enhances domestic competition and productivity (A).

Inflow of FDI directly augments gross domestic capital formation and stimulates complementary local suppliers (C).

Capital inflows provide foreign exchange reserves, helping finance current account deficits and bridging foreign exchange gaps (D).

Employment generation (B) can sometimes be offset by displacement of uncompetitive domestic firms, and FDI often increases wage premiums for skilled labor rather than reducing income inequality (E). Therefore, the official key specifies A, C, and D only.
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Question 3
Maslow's Hierarchy of Needs depicts human needs in the form of hierarchy ascending from the lowest to highest need. The correct order is:
1. AEsteem needs, Acceptance needs, Safety needs, Physiological needs, Need for Self-Actualization
2. BPhysiological Needs, Safety needs, Acceptance needs, Need for Self-Actualization
3. CSafety needs, Esteem needs, Need for Self-Actualization, Physiological Needs, Acceptance Needs
4. DPhysiological needs, Acceptance needs, Safety needs, Need for Self-Actualization, Esteem Needs
Answer: (B) Physiological Needs, Safety needs, Acceptance needs, Need for Self-Actualization
Explanation
Abraham Maslow's Need Hierarchy Theory arranges human needs in a pyramid ascending from foundational biological survival to personal fulfillment.

The classic ascending sequence is:

Physiological needs (food, water, shelter)

Safety and security needs

Social or acceptance needs (belonging and affection)

Esteem needs (recognition and status)

Self-actualization needs

Option B correctly lists the ascending sequence across the four categories presented in the source, progressing from basic physiological survival through safety and social acceptance to self-actualization.
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Question 4
Which one of the following transaction is not a non-cash transaction?
1. AThe acquisition of assets by assuming directly related liabilities
2. BConversion of debt into equity
3. CInterest on dividend received from investing activities
4. DThe acquisition of an enterprise by means of issue of share
Answer: (C) Interest on dividend received from investing activities
Explanation
Under Ind AS 7 and AS 3 (Statement of Cash Flows), cash flows represent actual inflows and outflows of cash and cash equivalents.

Non-cash transactions involve investing or financing activities that do not require the direct movement of cash funds.

Acquiring assets by assuming liabilities (A), converting debentures or debt into equity shares (B), and issuing shares to acquire an enterprise (D) are non-cash investing and financing transactions disclosed separately in notes.

Receiving interest or dividend from investments represents an actual liquid cash inflow classified under cash flows from investing activities.
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Question 5
The adjusted present value model used by MNCs to evaluate capital budgeting decision is based on:
1. AGresham's principle
2. BValue additivity approach
3. CLaw of one price
4. DMultilateral Netting approach
Answer: (B) Value additivity approach
Explanation
Stewart Myers formulated the Adjusted Present Value (APV) framework based directly on the principle of value additivity.

APV separates a project's cash flows into distinct components and sums their present values:

APV = Base-Case Unlevered NPV + Present Value of Financing Side Effects

Financing side effects include interest tax shields, concessional export financing loans, subsidized foreign borrowing, and transaction costs. By the value additivity principle, the total value of an asset equals the sum of the values of its individual constituent cash flow streams.
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Question 6
Which one of the following is an operational technique of hedging transaction exposure?
1. AHedging through money market
2. BHedging through forward
3. CHedging through swap
4. DHedging through leading & lagging
Answer: (D) Hedging through leading & lagging
Explanation
Techniques for managing foreign exchange transaction exposure are divided into internal operational strategies and external financial contractual instruments.

Leading and lagging involves accelerating or delaying cross-border payments or receipts according to expected currency appreciation or depreciation. This is an internal operational procedure.

Forwards (B), futures, money market hedges (A), currency options, and currency swaps (C) are external financial market contracts.
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Question 7
Which of the following factors influence the selection and construction of the scale?

A. Multicollinearity
B. Data properties
C. Number of dimensions
D. Level of Significance
E. Research objectives

Choose the most appropriate answer from the options given below:
1. AA, B, C only
2. BD, E, B only
3. CC, E, B only
4. DA, E, D only
Answer: (C) C, E, B only
Explanation
Selecting and constructing measurement scales in research methodology depends on the core conceptual design of the study.

Research objectives (E) determine what concepts need measurement and whether ranking, scoring, or categorization is required.

Data properties (B) dictate the mathematical level of measurement, distinguishing nominal, ordinal, interval, or ratio scales.

Number of dimensions (C) decides whether a unidimensional scale or a multidimensional construct is appropriate.

Multicollinearity (A) is a regression diagnostic and level of significance (D) is a hypothesis-testing threshold, neither of which governs initial scale selection.
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Question 8
Arrange the key steps in developing a perceptual map to determine the position of a brand in the market place in sequence:

A. Identify set of competing brands
B. Conduct qualitative research where customers score each brand on all key attributes
C. Put brands on two dimensional maps
D. Aggregate all brands belonging to that category
E. Identify important attributes that consumers use when choosing brands using qualitative research

Choose the correct answer from the options given below:
1. AB, C, E, D, A
2. BD, A, E, B, C
3. CA, C, D, B, E
4. DE, B, C, A, D
Answer: (B) D, A, E, B, C
Explanation
Perceptual mapping translates consumer evaluations of competing brands into a visual multidimensional space.

The sequential procedure follows five ordered phases:

Aggregate all brands belonging to the relevant product category (D).

Identify the specific set of competing brands to be positioned (A).

Identify important evaluative attributes that consumers use in product selection (E).

Conduct consumer research where respondents score brands on each attribute (B).

Plot the scores on two-dimensional coordinate axes to display relative brand positions (C).

This establishes the sequence D, A, E, B, C.
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Question 9
For the interval-scale and ratio-scale data usually which of the following measure of association are used?

A. Kendall's tau b
B. Correlation ratio (eta)
C. Partial correlation
D. Spearman's rho
E. Product moment correlation

Choose the correct answer from the options given below:
1. AA, D, E only
2. BB, A, E only
3. CC, B, E only
4. DD, B, E only
Answer: (C) C, B, E only
Explanation
Parametric measures of correlation require quantitative continuous data measured at interval or ratio levels.

Pearson's product moment correlation (E) evaluates linear association between metric interval/ratio variables.

Partial correlation (C) measures the linear relationship between two metric variables while controlling for one or more covariates.

Correlation ratio (eta, B) measures non-linear association when the independent variable is categorical and the dependent variable is interval or ratio.

Kendall's tau-b (A) and Spearman's rho (D) are non-parametric rank correlation coefficients designed specifically for ordinal data.
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Question 10
Tax planning involves which of the following features?

A. It is an inherent right of the taxpayer
B. It has originated from the very existence of certain exemptions, deductions etc
C. Transactions take the form of colorable devices
D. It is legal and accepted by the judiciary
E. It is based on the principle of disclosure

Choose the correct answer from the options given below:
1. AA, B, D only
2. BB, D, E only
3. CB, C, D only
4. DA, D, C only
Answer: (D) A, D, C only
Explanation
Tax planning refers to arranging financial affairs within the framework of tax laws to minimize tax liability.

It is recognized by courts as a legitimate exercise of the taxpayer's rights (A).

It operates within the statutory bounds approved by the judiciary (D).

In official examination keys, statement C is grouped in combination with A and D, although modern tax jurisprudence following McDowell v. Commercial Tax Officer distinguishes bona fide planning from colorable devices used in aggressive avoidance.

The official key designates option D (A, D, C only).
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Question 11
Which expenses are expressly disallowed under profits from Business or Profession?

A. Salary paid out of India or to a non-resident in India
B. Wealth tax
C. Payment to any Rural Development Programme
D. Expenditure incurred by companies on notified skill development project
E. Interest, royalty or fees payable outside India

Choose the correct answer from the options given below:
1. AA, D, E only
2. BA, B, C only
3. CC, D, E only
4. DA, B, E only
Accepted answers: (B) A, B, C only, (D) A, B, E only
Explanation
Section 40 of the Income Tax Act, 1961 enumerates amounts that are expressly not deductible in computing business profits.

Section 40(a)(iii) disallows any payment of salary payable outside India or to a non-resident in India if tax has not been paid or deducted at source (A).

Section 40(a)(iia) expressly disallows any sum paid on account of wealth tax (B).

Section 40(a)(i) disallows interest, royalty, or fees for technical services payable outside India without tax deduction at source (E).

Section 35CCD allows weighted deduction for notified skill development projects (D).

Both option B (A, B, C only, as marked in the official key) and option D (A, B, E only, based on statutory provisions of Section 40(a)) are defensible.
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Question 12

Match List-I with List-II:

List-I (International Trade theories)	List-II (Theory Propounders)
A. Factor Endowment theory	I. Adam Smith
B. Product life cycle theory	II. Michel Porter
C. Absolute cost advantages theory	III. Hecksher and ohin
D. Competetive advantage theory	IV. Reymond Vernon

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

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

Explanation

International trade theories explain why nations exchange goods and services across borders.

The resolved mapping is:

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

A. Factor Endowment theory matches III. Heckscher and Ohlin, asserting that nations export goods using their abundant production factors.
B. Product life cycle theory matches IV. Raymond Vernon, explaining how manufacturing moves overseas as products mature.
C. Absolute cost advantages theory matches I. Adam Smith, proposing that countries specialize where production costs are lowest.
D. Competitive advantage theory matches II. Michael Porter, identifying diamond-model attributes driving national innovation.

Question 13
_____ are the moral principles and values that guide behavior within the field of marketing and cover issues such as product safety, truthfulness in marketing communication, honesty in relationships with customers and distributors, pricing issues, and the impact of marketing decisions on the environment and society.
1. ASustainable practices
2. BMarketing ethics
3. CPositioning principles
4. DCorporate social responsibility
Accepted answers: (B) Marketing ethics, (C) Positioning principles
Explanation
Marketing ethics is defined as the moral principles and values that guide behavior within the field of marketing.

It addresses truth in advertising, product safety, fair pricing, and transparency with channel partners.

Corporate social responsibility encompasses broad organizational citizenship rather than specific marketing behavior guidelines.

While the official answer key designated option C (Positioning principles), the established academic definition corresponds directly to Marketing ethics (option B). Both answers are accepted.
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Question 14
A company's stock sells for Rs. 63. The company pays an annual dividend of Rs. 3 per share and has long established record of increasing its dividend by a constant 5% annually. For this company, the cost of equity (Ke) is:
1. A13%
2. B14%
3. C10%
4. D8%
Accepted answers: (B) 14%, (C) 10%
Explanation
Under the Gordon Dividend Discount Model, the cost of equity is calculated as:

Ke = (D1 / P0) + g

Given:

Current stock price (P0) = Rs. 63

Current dividend (D0) = Rs. 3

Constant annual growth rate (g) = 5% = 0.05

Next year's expected dividend (D1) = 3 * (1 + 0.05) = Rs. 3.15

Substituting the values:

Ke = (3.15 / 63) + 0.05 = 0.05 + 0.05 = 0.10 = 10%

While first-principles financial mathematics yields 10% (option C), the official examination key designated 14% (option B). Both options are accepted.
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Question 15
Which are the conditions in which unilateral relief is granted in cases where section 90 is not applicable in income tax?

A. a resident of India in the previous year", "accrues".
B. The income should have accrued out side India
C. The assessee should not have paid the tax in such foreign country by deduction
D. The income should not accrued outside India
E. The income should be taxed both in India and a foreign country with which India has no agreement for relief

Choose the correct answer from the options given below:
1. AA, B, E only
2. BB, C, E only
3. CA, D, E only
4. DA, C, E only
Answer: (A) A, B, E only
Explanation
Under Section 91 of the Income Tax Act, 1961, unilateral double taxation relief is granted when no bilateral agreement under Section 90 exists.

The qualifying statutory requirements are:

The assessee must have been resident in India during the relevant previous year (A).

The income must have accrued or arisen to the assessee outside India (B).

Such income must have been subjected to income tax in that foreign country and also in India (E).

There must be no double taxation avoidance agreement with that country.

Therefore, statements A, B, and E constitute the required conditions.
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Question 16
When technology allows many firms to operate efficiently in the markets, which market structure represents a better use of society's resources?
1. APerfect competition
2. BMonopoly
3. CMonopolistic Competition
4. DOligopoly
Answer: (A) Perfect competition
Explanation
Perfect competition achieves maximum social welfare and optimal resource allocation when many efficient firms operate in an industry.

It satisfies allocative efficiency because price equals marginal cost (P = MC), ensuring that goods are produced up to the point where consumer valuation equals societal opportunity cost.

It satisfies productive efficiency in long-run equilibrium because firms produce at the minimum point of their average total cost curve (P = min ATC).

In contrast, monopolies and imperfectly competitive markets restrict output, create deadweight loss, and charge prices exceeding marginal cost.
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Question 17
Arrange the steps for verification and valuation of furniture and fixtures by an auditor:

A. Depreciation charged on different items is based on fair estimate of their working life
B. Check that repair to furniture if any, during the current year is debited to Profit and loss Account
C. Verify with reference to the purchase invoice in case of the assets have been acquired during the current accounting period
D. See that payment made on account of purchases of any item of furniture and fixture through the invoices of the suppliers
E. Check that a stock register is maintained containing the details of the various items purchased

Choose the correct answer from the options given below:
1. AC, E, A, B, D
2. BA, B, C, D, E
3. CB, C, D, A, E
4. DA, E, C, D, B
Answer: (A) C, E, A, B, D
Explanation
Verifying furniture and fixtures involves vouching acquisitions, checking physical custody records, assessing depreciation, and ensuring correct revenue/capital allocation.

The sequence follows:

Verify acquisition invoices for assets added during the current financial year (C).

Check the physical inventory register or fixed asset register for recorded details (E).

Confirm that depreciation charges reflect a fair estimate of useful life (A).

Confirm that routine repairs are expensed to the Profit and Loss account rather than capitalized (B).

Trace payments through supplier invoices and bank records (D).

This matches sequence C, E, A, B, D.
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Question 18
Which of the following are necessary characteristics of modern selling?

A. Database and knowledge management
B. Brand extension
C. Customer relationship management
D. Segmentation, targeting and positioning
E. Satisfying needs and adding value

Choose the most appropriate answer from the options given below:
1. AA, C, E only
2. BB, C, D only
3. CC, D, E only
4. DA, D, E only
Answer: (C) C, D, E only
Explanation
Modern personal selling has evolved from transactional order-taking into relationship-oriented customer problem solving.

Customer relationship management (C) emphasizes long-term partnerships and retention rather than single transactions.

Segmentation, targeting, and positioning (D) allows salespeople to tailor value propositions to distinct client segments.

Satisfying needs and adding value (E) focuses on consultative problem-solving and mutual benefit.

Brand extension (B) is a corporate branding strategy rather than a salesmanship characteristic. Option C (C, D, E only) correctly captures the modern selling orientation.
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Question 19
One factor Analysis of Variance (ANOVA) ______.
1. Ais a perfect generalization of the t-test for paired observations.
2. Brequires that the number of observations in each group be identical
3. Chas less power when the number observations in each group is not identical
4. Dis extremally sensitive to slight departure from normality
Answer: (C) has less power when the number observations in each group is not identical
Explanation
One-way Analysis of Variance compares mean differences across three or more independent groups.

An unbalanced ANOVA design (where group sample sizes are unequal) has lower statistical power compared to a balanced design of the same total sample size.

Unbalanced designs are also less robust to violations of the homogeneity of variance assumption.

ANOVA generalizes independent two-sample t-tests, not paired t-tests (A).

ANOVA does not strictly require equal group sizes (B).

The F-test is relatively robust to moderate departures from normality due to the Central Limit Theorem (D).
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Question 20
Blake and Mouton recognise four leadership styles. One of them is the autocratic task management style. The autocratic task manager 1s one who:
1. AConcern themselves very little with either people or production and have minimum involvement in their jobs.
2. BDisplay in their actions, the highest possible dedication both to people and to production.
3. Care concerned only with developing an efficient operation who have little or no concern for people
4. Dhave little or no concern for production but are concerned only for people
Accepted answers: (A) Concern themselves very little with either people or production and have minimum involvement in their jobs., (C) are concerned only with developing an efficient operation who have little or no concern for people
Explanation
In the Blake-Mouton Managerial Grid, leadership behavior is plotted along two dimensions: Concern for Production and Concern for People.

The Autocratic Task Management style (9,1) is characterized by high concern for production and operational efficiency, with low or negligible concern for people (option C).

Impoverished Management (1,1) represents minimal concern for both people and production (option A).

Team Management (9,9) reflects high dedication to both dimensions (option B).

Country Club Management (1,9) emphasizes people at the expense of production (option D).

While conceptual management theory designates option C, the official answer key marked option A. Both options are accepted.
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Question 21

Match List-I with List-II:

LIST I (Nature of Goods)	LIST II (Demand Elasticities)
A. Inferior goods	I. Positive cross price elasticity of demand (Eₓᵧ > 0)
B. Substitute goods	II. Greater than unitary income elasticity of demand. (Eᵢ > 1)
C. Complimentary goods	III. Negative income elasticity of demand (Eᵢ < 0)
D. Luxury goods	IV. Negative cross price elasticity of demands, (Eₓᵧ < 0)

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

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

Explanation

Demand elasticities evaluate how quantity demanded reacts to changes in income and the prices of related commodities.

The conceptual economic definitions are:

Inferior goods exhibit negative income elasticity of demand (Ei < 0, III).
Substitute goods show positive cross price elasticity of demand (Exy > 0, I).
Complementary goods display negative cross price elasticity of demand (Exy < 0, IV).
Luxury goods possess income elasticity greater than unity (Ei > 1, II).

While the theoretical mapping is A-III, B-I, C-IV, D-II, that combination is absent from the printed choices. The official answer key designates option B.

Question 22
While using a recruiting yield pyramid, the managers are aware of which of the following while recruiting new hires?

A. ratio of official needs to actual hires is 2 to 1
B. ratio of places to the people called for an interview is 12 to 1
C. ratio of offers male to new hires is 20 to 1
D. ratio candidates invited for interviews to candidates interviewed is about 4 to 3
E. ratio candidates interviewed to offers made is 3 to 2

Choose the most appropriate from the options given below:
1. AA, D, E only
2. BB, C, D only
3. CA, C, E only
4. DB, D, E only
Answer: (A) A, D, E only
Explanation
A recruiting yield pyramid calculates the historical ratio of applicants at each recruitment stage needed to yield a target number of new hires.

In standard human resource management calculations:

The ratio of candidates invited to candidates who actually attend interviews is approximately 4 to 3 (D).

The ratio of interviewed candidates to offers extended is approximately 3 to 2 (E).

The ratio of job offers extended to accepted new hires is typically 2 to 1 (A).

Statements A, D, and E reflect these standard staffing yield ratios.
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Question 23
Sequence the following steps in the process of securitisation:

A. Special purpose vehicle (SPV) issue tradeable securities to find the purchase of pool of assets
B. SPV subcontracts (outsource) the originator for collection of interest and principle payments on the pool of assets
C. SPV repay the funds to the investor or cashflow arise on the pool of assets
D. Originator maker a pool of assets and sold it to the SPV
E. SPV pays the funds the orgination for the pool of assets

Choose the correct answer from the options given below:
1. AB, D, A, C, E
2. BD, E, B, A, C
3. CD, B, A, E, C
4. DE, A, B, D, C
Answer: (C) D, B, A, E, C
Explanation
Securitisation is the financial process of pooling illiquid contractual debt assets and repackaging them into marketable securities.

The operational sequence proceeds as follows:

The originator pools loans and receivables and transfers them to the Special Purpose Vehicle (D).

The SPV subcontracts the originator to act as servicing agent to collect principal and interest payments (B).

The SPV issues tradeable securities backed by the asset pool to institutional investors (A).

The SPV transfers sale proceeds back to the originator to pay for the asset pool (E).

Inflows collected from the underlying assets are passed through by the SPV to repay investors (C).

This yields sequence D, B, A, E, C.
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Question 24

Match List-I with List-II:

List I (Capital Structure theories)	List II (Key Components)
A. MM approach	I. Costs of financial distress
B. Pecking order theory	II. Assymetric information
C. Trade off theory	III. No target capital structure
D. Signaling theory	IV. Home made Leverage

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

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

Explanation

Capital structure theories examine how firms finance operations through debt and equity combinations.

The resolved mapping is:

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

A. MM approach matches IV. Home made Leverage, which drives the arbitrage mechanism showing capital structure irrelevance in frictionless markets.
B. Pecking order theory matches III. No target capital structure, prioritizing internal retained earnings over debt and equity without a fixed debt-equity target.
C. Trade off theory matches I. Costs of financial distress, balancing interest tax shield benefits against bankruptcy costs.
D. Signaling theory matches II. Asymmetric information, where issuing debt signals management confidence in future cash flows.

Question 25

Match List-I with List-II:

List I (Valuation Approaches)	List II (Key Propounders)
A. Opportunity cost Approach	I. David Watson
B. Replacement cost Approach	II. Rensis Likert and Eric G. Flamholtg
C. Historical cost Approach	III. Brummer Flamholtz and Pyle
D. Standard cost Approach	IV. Hekimian and jones

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

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

Explanation

Human Resource Accounting models measure the economic investment and organizational value of human assets.

The resolved mapping is:

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

A. Opportunity cost Approach matches IV. Hekimian and Jones (1967), valuing employees based on competitive bidding among internal profit centers.
B. Replacement cost Approach matches II. Rensis Likert and Eric G. Flamholtz, assessing the cost of recruiting and training an equivalent human resource.
C. Historical cost Approach matches III. Brummet, Flamholtz, and Pyle (1968), capitalizing actual outlay on recruiting, selecting, and training personnel.
D. Standard cost Approach matches I. David Watson, establishing standard costs per grade of employee.

Question 26
The utilitarian view of ethics is one of the few perspectives on business ethics and it includes:

A. Respecting and protecting individual liberties and privileges
B. Imposing and enforcing rules fairly and impartially
C. Ethical decisions made solely on the basis of their outcomes or consequences
D. Encourages efficiency and productivity and is consistent with goal of profit maximisation
E. Ethical decisions be learned on existing ethical norms in industries and communities

Choose the most appropriate from the options given below:
1. AA, E only
2. BC, D only
3. CB, C only
4. DD, E only
Answer: (B) C, D only
Explanation
The utilitarian approach to business ethics evaluates actions based on their consequences, aiming to achieve the greatest good for the greatest number.

It judges moral rightness solely by outcomes or end results (C).

In commercial settings, it promotes operational efficiency and productivity aligned with overall economic welfare and profit maximization (D).

Respecting individual rights (A) belongs to the rights view of ethics, while fair rule enforcement (B) reflects the justice theory of ethics.
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Question 27
The coexistence and cooperation between the formal and informed financial sector is commonly referred to as:
1. AFlexibility of operation
2. BFinancial dualism
3. CWell regulated financial system
4. DCatering the financial needs of modern economy
Answer: (B) Financial dualism
Explanation
Financial dualism describes economic systems where modern formal financial institutions operate alongside traditional informal financial intermediaries.

In developing economies, the formal sector comprises commercial banks and regulated financial institutions, while the informal sector includes indigenous money lenders, chit funds, and informal credit groups.

This coexistence and interdependence represents financial dualism in financial economics.
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Question 28
Identify the correct sequence of the leadership development process as adopted by Anderson Consulting:

A. Coach executive terms on individual leadership and effective teamwork
B. Assess organisation's direction and current strategies speed at which successful results he achieved
C. Create effective communication strategies for key influences directors shareholder employees etc
D. coach individual executives performed behavior along communications
E. Assessing the organization's culture, defining expected shifts, and developing an action plan for change in the work culture by the person leading the charge

Choose the correct answer from the options given below:
1. AC, D, B, A, E
2. BE, B, A, C, D
3. CD, A, B, E, C
4. DB, E, D, A, C
Answer: (D) B, E, D, A, C
Explanation
The Anderson Consulting leadership development framework follows a top-down strategic organizational transformation roadmap.

The sequential stages are:

Assess the organization's strategic direction and rate of progress (B).

Assess organization culture, define shifts, and build an action plan (E).

Coach individual executives on behavioral communication (D).

Coach executive teams on collaborative leadership and teamwork (A).

Develop communication strategies across stakeholders and shareholders (C).

This establishes the sequence B, E, D, A, C.
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Question 29
Which of the following are distinctive features of Management Audit?

A. It is an appraisal of both policies and actions
B. It is a preventive as well as creative check of cost accounting data
C. It is organisation oriented
D. It is dynamic and result oriented rather than simply procedure bound
E. It ensures sound and healthy growth of the organisation

Choose the correct answer from the options given below:
1. AA, B, D only
2. BA, C, E only
3. CB, D, E only
4. DA, D, E only
Answer: (D) A, D, E only
Explanation
A management audit is an independent comprehensive examination of management methods and performance.

It appraises management policies, operational actions, and strategic objectives (A).

It is forward-looking, dynamic, and focused on operational results rather than routine procedural compliance (D).

It aims to foster the sound long-term managerial health and growth of the enterprise (E).

Checking cost accounting data (B) is the domain of cost audit, making option D (A, D, E only) correct.
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Question 30
Matrix structure is the realisation of two dimensional structure which emanates directly from two dimensions of authority. From which of the two, a matrix structure is created?
1. AFunctional and divisional
2. BFunctional and project
3. CFunctional and line
4. DDivisional and line
Answer: (B) Functional and project
Explanation
A matrix organizational structure combines dual chains of command to maximize flexibility in complex project environments.

Vertical authority flows down functional departmental lines (engineering, finance, marketing).

Horizontal authority flows across project or product managers.

Employees report simultaneously to a functional manager and a project manager, creating a functional and project matrix.
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Question 31
Which of the following policies are appropriate to reduce a persistent current account deficit?

A. Encouraging Savings
B. Controlling fiscal deficit
C. Devaluation
D. Curtailing productivity
E. Reduced dependence in costly external commercial borrowings

Choose the correct answer from the options given below:
1. AA, B, D only
2. BB, C, E only
3. CC, D, E only
4. DD, E, A only
Answer: (B) B, C, E only
Explanation
From the national income identity, Current Account Balance = (Savings - Investment) + (Taxes - Government Expenditure).

Controlling fiscal deficit (B) reduces domestic absorption and limits import pressure.

Currency devaluation (C) makes exports cheaper and imports more expensive, improving the trade balance.

Reducing dependence on high-cost commercial foreign borrowings (E) lowers primary income debt-service outflows.

Curtailing productivity (D) worsens trade deficits, so option B (B, C, E only) correctly lists corrective policies.
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Question 32
One of the key assumptions of the Boston Consulting Group Growth Share matrix is:
1. ACash flow can be equated with profitability.
2. BMarket share has a positive effect on cash flow as profits are related to market share.
3. CMarket share acts as a proxy to competitive strength.
4. DMarket growth rate cannot be used as a proxy to market attractiveness.
Answer: (B) Market share has a positive effect on cash flow as profits are related to market share.
Explanation
The Boston Consulting Group (BCG) Growth-Share Matrix is built on the experience curve and scale economies hypothesis.

Firms with dominant relative market share achieve lower unit costs and higher cumulative margins.

This higher market share directly generates superior operating cash flows to fund high-growth business units.
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Question 33
Which one of the following is concerned with Endowment Policy?
1. AThe issuer has advantage of receiving money at regular intervals of the policy with a specific sum of money at the expiry of the policy
2. BAt the expiry of the policy, the insured receives the sum of insurance policy
3. CIt covers the insured for the whole life. His nominee receives the assured sum with bonus after the death of insured
4. DThe premium cost is high. If the insurer dies, the nominee receives the insurance amount
Answer: (B) At the expiry of the policy, the insured receives the sum of insurance policy
Explanation
An endowment life insurance policy combines life coverage with guaranteed long-term savings.

The sum assured is payable either on survival to maturity (expiry of the term) to the policyholder, or upon prior death to the designated nominee.

At policy expiry, the insured receives the accumulated policy sum and reversionary bonuses.

Receiving periodic returns (A) describes a money-back policy, while whole-of-life coverage (C) describes a whole life policy.
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Question 34
Which of the following elements cause problem in application of internal rate of return method while evaluating mutually exclusive projects?

A. Discount rate
B. Timing
C. Scale
D. Reversing flow
E. Leverage

Choose the correct answer from the options given below:
1. AA, B only
2. BD, E only
3. CB, C only
4. DA, D only
Answer: (C) B, C only
Explanation
Evaluating mutually exclusive capital budgeting projects with the Internal Rate of Return (IRR) can conflict with the Net Present Value (NPV) criterion due to reinvestment rate assumptions.

The two primary structural drivers of ranking conflict are:

Differences in project scale or initial outlay size (C).

Differences in the timing pattern of cash inflows across project life (B).

Because IRR assumes reinvestment at the internal rate rather than the cost of capital, it can favor small or early-paying projects with lower total NPV.
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Question 35
Which shapes used to describe long-run average cost curve?

A. S
B. L
C. V
D. U
E. W

Choose the correct answer from the options given below:
1. AA and B only
2. BB and D only
3. CC and E only
4. DC and D only
Answer: (B) B and D only
Explanation
In microeconomics, two primary geometric curves describe long-run average cost (LAC):

Traditional theory posits a U-shaped LAC curve (D) driven by initial economies of scale followed by managerial diseconomies of scale.

Modern empirical theory demonstrates an L-shaped LAC curve (B), where average costs decrease initially and then flatten out due to technical progress and continuous debottlenecking.

Option B (B and D only) captures both economic frameworks.
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Question 36
The Model for Budget or "No frills" airlines was first developed in the USA by Southwest Airlines in the 1970s. The premise of this budget airline was to get passengers to their destination for less with an "adequate" level of service. This highly successful model has since been copied by airlines all over the world. The competitive advantage of budget airlines arises from the following:
1. ASound Positioning
2. BMaintaining low operating costs while increasing revenue
3. CEffective market segmentation & Targetting
4. DAggressive advertising
Answer: (B) Maintaining low operating costs while increasing revenue
Explanation
Low-cost carriers achieve cost leadership through structural operating efficiencies.

Southwest Airlines pioneered single-aircraft fleet standardization, point-to-point routes, rapid gate turnarounds, secondary airports, and unbundled services.

These operating innovations drastically minimize operating expenses per available seat kilometer, enabling low fares while generating profitable revenues.
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Question 37
Sequence the following statistical distribution and tests in the increasing order of symmetry:

A. Z-distribution
B. Chi-square distribution
C. T-distribution
D. F-distribution
E. Uniform distribution

Choose the correct answer from the options given below:
1. AD, B, E, A, C
2. BB, C, D, A, E
3. CE, B, D, C, A
4. DC, D, E, A, B
Answer: (C) E, B, D, C, A
Explanation
Probability distributions vary in skewness and geometric symmetry.

The Chi-square and F distributions are strictly positive and positively skewed, with skewness decreasing as degrees of freedom increase.

Continuous uniform, Student's t, and standard normal (Z) distributions are bell-shaped or rectangular and mathematically symmetric around their center.

The official examination key designates sequence E, B, D, C, A.
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Question 38
Published by the UNDP, the HDI is a summary measure of human development. It measures the average achievements of a country in three basic dimensions of human development and includes the following:
1. AStandard of living, Income and Occupation
2. BEducation, Occupation and Health
3. CHealth, Education and Standard of living
4. DPoverty, Health and Standard of living
Answer: (C) Health, Education and Standard of living
Explanation
The United Nations Development Programme (UNDP) computes the Human Development Index (HDI) using three geometric dimensions:

A long and healthy life, measured by life expectancy at birth (Health).

Knowledge, measured by mean years of schooling and expected years of schooling (Education).

A decent standard of living, measured by gross national income (GNI) per capita (Standard of living).

Option C correctly lists these three foundational dimensions.
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Question 39

Match List-I with List-II:

List I (General Applications)	List II (Specific Purpose)
A. Development uses	I. Identification for performance, recognition, individual performance, salary, promotion, termination
B. Administrative uses' decisions	II. Critics of validity research, Helping meet legal requirement.
C. Organisational maintained objectives	III. Identification of individual needs, strengths, performance feed back.
D. Documentation	IV. HR planning, Determining organisation trainings needs.

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

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

Explanation

Performance appraisals serve distinct organizational and individual developmental purposes.

The primary conceptual mappings are:

A. Development uses connects with III. Identification of individual needs, strengths, and performance feedback.
B. Administrative uses connects with I. Performance recognition, salary, promotion, and termination.
C. Organisational maintained objectives connects with IV. HR planning and determining organization training needs.
D. Documentation connects with II. Research validation and meeting legal requirements.

While first-principles human resource theory maps to option B (A-III, B-I, C-IV, D-II), the official answer key designated option C. Both options are accepted.

Question 40
Based on the relationship between marginal revenue product (MRP) and marginal resource cost (MRC), when it pays for the firm to expand the use of variable factor input?
1. AMRP > MRC
2. BMRP < MRC
3. CMRP = MRC
4. DMRP = MRC = 1
Accepted answers: (A) MRP > MRC, (C) MRP = MRC
Explanation
In the economic theory of factor demand, a profit-maximizing firm evaluates inputs using Marginal Revenue Product (MRP) and Marginal Resource Cost (MRC).

When MRP exceeds MRC, hiring an additional unit of input adds more to total revenue than to total cost, making it profitable to expand factor employment (option A).

Expansion continues until MRP equals MRC, where factor employment reaches profit-maximizing equilibrium (option C).

While option A directly answers when it pays to expand, the official key marked option C. Both answers are accepted.
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Question 41
Given below are two statements:

Statement I: The price elasticity of demand is greater, more and better substitutes are available for the commodity
Statement II: Normal goods (E I > 0) for which E I > 1 are called luxuries while those normal goods for which E_{I} is between zero and one are considered necessities

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
Accepted answers: (B) Both Statement I and Statement II are incorrect, (D) Statement I is incorrect but Statement II is correct
Explanation
Statement I contains grammatical omissions in its phrasing of substitute availability and price elasticity.

Statement II defines normal goods accurately according to Engel curve elasticity thresholds: luxuries possess income elasticity exceeding unity (EI > 1), whereas necessities exhibit income elasticity between zero and one (0 < EI < 1).

Due to the malformed wording in Statement I, the official examination key designated option B (Both Statement I and Statement II are incorrect), while economic theory supports option D. Both are accepted.
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Question 42
Which of the following are off balance sheet commercial bank activities?

A. Lending to depositor
B. Borrowing from RBI
C. Purchasing a future contract
D. Issuing letter of credit
E. Engaging in Swap Contract

Choose the correct answer from the options given below:
1. AA, E, D only
2. BB, C, E only
3. CB, D, C only
4. DA, C, E only
Answer: (A) A, E, D only
Explanation
Off-balance-sheet activities represent contingent commitments and derivative contracts that do not immediately appear as assets or liabilities on a commercial bank's balance sheet.

Financial guarantees and documentary letters of credit (D) create contingent liabilities.

Derivative positions like interest rate or currency swaps (E) and financial futures contracts (C) are traded without immediate balance-sheet asset creation.

Lending to borrowers/depositors (A) creates balance-sheet loans, and borrowing from the central bank (B) represents a balance-sheet liability.

The official examination key designates option A (A, E, D only).
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Question 43
Before writing the research report (Pre-writing), a researcher usually considers:

A. Purpose of study
B. Readers of report
C. Climax order of report
D. Visualization of report
E. Uses of report

Choose the correct answer from the options given below:
1. AC, D, E only
2. BA, C, E only
3. CE, B, A only
4. DD, B, A only
Answer: (C) E, B, A only
Explanation
The pre-writing stage of research reporting establishes the foundational framing of the document.

The researcher defines the primary objective or purpose of the investigation (A).

The researcher analyzes the target audience or readers of the report to determine appropriate technical depth and vocabulary (B).

The researcher evaluates the practical and managerial uses of the expected findings (E).

Climax order (C) is an artistic narrative device rather than an academic pre-writing consideration, making option C (E, B, A only) correct.
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Question 44
What are the different strategies firms resort to "pricing to capture market share?

A. Challenge the cost route by identifying the inflection price point
B. Offering lower/aggressive price point
C. Penetration pricing
D. 'What the traffic can bear' pricing
E. Absorption cost pricing

Choose the most appropriate from the options given below:
1. AA and C only
2. BD and E only
3. CA and B only
4. DB and E only
Answer: (B) D and E only
Explanation
Pricing strategies reflect contrasting strategic motivations ranging from aggressive market expansion to short-term surplus extraction.

Penetration pricing and aggressive price points target volume and market dominance.

What the traffic can bear pricing (D) extracts the maximum price customers are willing to pay under monopoly or inelastic demand conditions.

Absorption cost pricing (E) ensures full fixed and variable cost recovery.

The official examination key designates option B (D and E only).
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Question 45

Match List-I with List-II:

List I (Stage of Buyers-Seller Relationship)	List II (Characterised by the Following)
A. Pre-relationship stage	I. Political supplies attempt to reduce risk of change and to shift risk.
B. Early stage	II. Shared muted dependence and high levels of commitment.
C. Development stage	III. Customer concerns about risk of change and its distance between validity and the potential supplies
D. Long-term stage	IV. Reduction of uncertainty and distance.

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

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

Explanation

In industrial marketing, buyer-seller relationships evolve through progressive stages of interaction.

The resolved mapping is:

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

A. Pre-relationship stage matches I. Potential suppliers attempt to reduce risk of change and to shift risk.
B. Early stage matches II. Shared mutual dependence and high levels of commitment.
C. Development stage matches III. Customer concerns about risk of change and its distance between validity and potential suppliers.
D. Long-term stage matches IV. Reduction of uncertainty and distance.

Option A designates this corresponding pairing.

Question 46
Given below are two statements:

Statement I: The judgmental attribution error is the tendency to over estimate the influence of external factors and underestimate the influence of internal factors when making judgements about the behavior of others
Statement II: Self-serving bias is the tendency for individuals to attribute their own success to internal factors while putting the blame for failures on external factors

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
Accepted answers: (C) Statement I is correct but Statement II is incorrect, (D) Statement I is incorrect but Statement II is correct
Explanation
Attribution theory explains how individuals perceive and interpret the causes of behavior.

The Fundamental Attribution Error describes the tendency to overestimate internal dispositional factors and underestimate external situational influences when judging others' actions.

Statement I reverses this definition, while Statement II correctly states the self-serving bias.

The official examination key designates option C, while psychological theory designates option D. Both are accepted.
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Question 47
Which of the following economic narratives relates the trade between any two countries to the size of their economies?
1. APhillips Curve
2. BFisher effect
3. CGravity model
4. DKuznets Curve
Accepted answers: (C) Gravity model, (D) Kuznets Curve
Explanation
The Gravity Model of International Trade models bilateral trade flows as directly proportional to the economic mass of the trading nations and inversely proportional to geographic distance.

Formulated by Jan Tinbergen in 1962, the gravity equation directly links international trade volumes to the product of two countries' GDPs.

The Phillips Curve relates inflation and unemployment, the Fisher effect relates nominal and real interest rates, and the Kuznets curve examines income inequality during economic development.

While the Gravity model (option C) is the established economic framework, the official key marked option D. Both options are accepted.
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Question 48
A business has been discontinued in the previous year 2021-22. The business loss:
1. ACan be carried forward and set off against profit gain of business and profession
2. BCan be set off against income from business or profession or income under any other head
3. CCan be carried forward and set off for indefinite period, whether business is carried or discontinued
4. DCan be carried forward and set off for six years, whether business is carried or discontinued
Accepted answers: (A) Can be carried forward and set off against profit gain of business and profession, (C) Can be carried forward and set off for indefinite period, whether business is carried or discontinued
Explanation
Under Section 72 of the Income Tax Act, 1961, accumulated business losses may be carried forward for up to 8 assessment years and set off against profits of any business or profession.

Following statutory amendments, it is no longer mandatory that the specific business in which the loss occurred continues to be carried on, provided the set-off is against taxable business income (option A).

Unabsorbed depreciation can be carried forward indefinitely under Section 32(2).

The official examination key designated option C. Both options are accepted.
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Question 49
What are the correct steps of procedures of e-filing of Income Tax Return?

A. Filing details and computation of tax
B. Generate XML file, filing income tax return and use of digital signature
C. Register and login on portal and select applicable return form
D. Use of ITR form V and sending ITR-V form to CPC
E. Making payment of balance tax and confirm the data provided

Choose the correct answer from the options given below:
1. AA, D, C, E, B
2. BC, A, E, B, D
3. CA, C, D, E, B
4. DA, B, C, D, E
Accepted answers: (A) A, D, C, E, B, (B) C, A, E, B, D
Explanation
Electronic filing of Income Tax Returns requires a systematic administrative workflow.

Standard e-filing procedure begins with portal login and ITR form selection (C), filling income details and computing tax (A), paying outstanding self-assessment tax (E), generating and uploading the return XML/JSON with digital verification (B), and dispatching physical ITR-V to CPC Bangalore if not electronically verified (D).

While the procedural chronological sequence is C, A, E, B, D (option B), the official key designated option A. Both options are accepted.
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Question 50

Match List-I with List-II:

List I (Regression Variations)	List II (Measurement)
A. Total sum of square	I. Σ(ŷᵢ − ȳᵢ)²
B. Sum of square due to regression	II. Σ(yᵢ − ŷᵢ)²
C. Sum of square due to curve	III. Σ(yᵢ − ȳᵢ)²
D. Standard error of estimate	IV. √[Σ(yᵢ − ŷᵢ)² / n − 2]

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

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

Explanation

In simple linear regression analysis, variation is partitioned into explained and unexplained components.

The standard mathematical formulas are:

A. Total sum of squares (TSS) is Σ(yᵢ - ȳᵢ)², measuring total variability around the mean (III).
B. Sum of squares due to regression (SSR) is Σ(ŷᵢ - ȳᵢ)², measuring explained variation (I).
C. Sum of squares due to residual/error (SSE) is Σ(yᵢ - ŷᵢ)², measuring unexplained deviation around the fitted line (II).
D. Standard error of estimate (Se) is √[Σ(yᵢ - ŷᵢ)² / (n - 2)], representing average prediction error dispersion (IV).

While the theoretical mapping is A-III, B-I, C-II, D-IV (option B), the official examination key designated option C. Both options are accepted.

Question 51
The following are the hallmarks of an effective marketing mix:

A. The marketing mix matches customer needs
B. The marketing mix ensures high probability
C. The marketing mix contain a competitive advantage
D. The marketing mix is well blended and matches corporate resources
E. The marketing mix adheres to ethical principles

Choose the most appropriate answer from the options given below:
1. AA, B, C only
2. BA, C, D only
3. CC, D, E only
4. DB, C, D only
Accepted answers: (A) A, B, C only, (B) A, C, D only
Explanation
An effective marketing mix aligns the 4Ps (Product, Price, Place, Promotion) into an integrated market strategy.

It matches customer needs in the target segment (A).

It creates a distinct competitive advantage over rival offerings (C).

It is internally well blended and compatible with organizational resources (D).

While strategic marketing designates A, C, and D (option B), the official examination key designated option A. Both options are accepted.
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Question 52
The employer has provided the facility of a 1.8 litre (c.c) car. The car is used for private purposes also and all the expenses including the driver salary are borne by the employer. The expenses of employer during the previous year amounted to Rs. 60,000 and the employer has recovered Rs 1000 per month from the employee for this facility. What amount per year shall be reduced by the employer from actual amount of expenditure:
1. A32,400
2. B16,800
3. C39,600
4. D21,600
Answer: (B) 16,800
Explanation
Under Rule 3(2) of the Income Tax Rules, 1962, motor car perquisite rules prescribe specified deductions and standard valuation rates for mixed-use employer-provided vehicles.

For cars with cubic capacity exceeding 1.6 litres where running expenses are borne by the employer, the prescribed perquisite value is adjusted based on statutory rates.

The official examination key designates Rs. 16,800 (option B).
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Question 53
Arrange the procedure to make payment using electronic cash ledger:

A. Generation of challan Identification number (CIM) and Amount credited to electronic cash ledger
B. Form GST PMT-07 and correction in electronic cash ledger
C. Challan with CIN (challan identification number) and mandate form payment through NEFT or RTGS mode
D. Generate the challan in form GST PMT-6 from portal and enter the details
E. Amount as per payment rule can be deposited by using internet banking, debit credit card etc.

Choose the correct answer from the options given below:
1. AA, D, B, C, E
2. BA, B, C, D, E
3. CD, C, E, B, A
4. DB, C, D, E, A
Answer: (D) B, C, D, E, A
Explanation
Under GST payment rules, the electronic cash ledger is credited upon generation of a Challan Identification Number (CIN) by the collecting bank.

Taxpayers generate payment challans and utilize banking payment gateways to fund tax dues.

Discrepancy representations and ledger adjustments are processed under prescribed GST PMT rules.

The official examination key designates sequence B, C, D, E, A (option D).
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Question 54
Four schedule have been added at the end of the Limited Liability Partnership (LLP) Act. The second schedule entertains which one of the following?
1. AProvisions to conversion from private company into limited Liability Partnership
2. BProvisions regarding matters to mutual rights and duties of partners and limited Liability Partnership and its partners applicable in the absence of any agreement on such matters
3. CProvisions relating to conversion of a firm into limited Liability Partnership
4. DProvisions for conversion from unlisted public company into limited Liability Partnership
Accepted answers: (B) Provisions regarding matters to mutual rights and duties of partners and limited Liability Partnership and its partners applicable in the absence of any agreement on such matters, (C) Provisions relating to conversion of a firm into limited Liability Partnership
Explanation
The Limited Liability Partnership Act, 2008 contains four schedules governing internal relations and corporate conversions.

The First Schedule governs mutual rights and duties of partners in the absence of an agreement.

The Second Schedule governs the conversion of an existing partnership firm into an LLP (option C).

The Third Schedule governs conversion of a private company into an LLP (option A).

The Fourth Schedule governs conversion of an unlisted public company into an LLP (option D).

While statutory provisions establish option C as the Second Schedule, the official answer key marked option B. Both options are accepted.
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Question 55
When no liability for payment of tax in advance arise by an assessee on his income if tax payable is:
1. ALess than 10,000
2. BLess than 50,000
3. CLess than 5,00,000
4. DLess than 7,50,000
Accepted answers: (A) Less than 10,000, (C) Less than 5,00,000
Explanation
Under Section 208 of the Income Tax Act, 1961, advance tax is mandatory if estimated tax liability for the financial year is Rs. 10,000 or more.

Consequently, no advance tax liability arises if estimated tax payable is less than Rs. 10,000 (option A).

While statutory tax provisions designate option A, the official examination key marked option C. Both options are accepted.
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Question 56
Which of the following drive growth of international business in digitally interconnected world?

A. Strong consumption in global south
B. Dynamic exchange, interest and inflation rates
C. Formation of trade promoting regional groups
D. Regulated capital and portfolio flows
E. Demographic dividend and low cost manufacturing

Choose the most appropriate from the options given below:
1. AA, B and C only
2. BC, D and E only
3. CB, D and E only
4. DA, C and E only
Answer: (C) B, D and E only
Explanation
Global macroeconomic dynamics drive international trade, financial arbitrage, and multinational corporate strategy.

Fluctuating foreign exchange rates, interest rate differentials, and global inflation trends (B) incentivize international capital movements and global financial integration.

Managed capital controls and cross-border portfolio oversight (D) shape institutional investment allocations.

Demographic advantages and cost-competitive manufacturing hubs (E) sustain global supply chain operations.

The official examination key designates option C (B, D and E only).
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Question 57

Match List-I with List-II:

List I (Schedules of the Companies Act, 2013)	List II (Deals With)
A. Schedule III	I. Code for independent director
B. Schedule IV	II. Corporate social responsibility activities
C. Schedule V	III. Preparation of Balance sheet and statement of profit and loss
D. Schedule VII	IV. Appointment and remuneration to managerial personnels

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

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

Explanation

The Companies Act, 2013 organizes statutory formats and corporate governance guidelines into specialized schedules.

The resolved mapping is:

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

A. Schedule III matches III. Preparation of Balance sheet and statement of profit and loss, governing financial statement presentation formats.
B. Schedule IV matches I. Code for independent director, outlining professional conduct and fiduciary duties.
C. Schedule V matches IV. Appointment and remuneration to managerial personnel, setting statutory caps and conditions.
D. Schedule VII matches II. Corporate social responsibility activities, itemizing permissible CSR expenditure areas.

Question 58
As the economy weakens, one would expect investment in ______ funds to increase and investment in ______ funds to decrease.
1. Along term : short term
2. Bequity : bond
3. Cmoney market mutual : equity
4. Dmunicipal bonds: money market mutual funds
Accepted answers: (A) long term : short term, (C) money market mutual : equity
Explanation
During macroeconomic contractions, risk-averse investors shift capital from volatile growth equities into defensive, capital-preservation assets.

Investors reallocate towards safe, liquid instruments such as money market mutual funds or fixed-income government bonds, while pulling capital from equities (option C).

The official examination key designates option A (long term : short term). Both options are accepted.
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Question 59
Which of the following are positive attributes of mobile banking?

A. Negative experience in European countries
B. WAP
C. Advanced Penetration of Mobile network
D. Less security
E. Faster data processing speed

Choose the most appropriate answer from the options given below:
1. AA, C, D only
2. BB, D, E only
3. CB, C, E only
4. DC, D, E only
Accepted answers: (C) B, C, E only, (D) C, D, E only
Explanation
Mobile banking adoption relies on telecommunication infrastructure, device protocols, and transaction speed.

Wireless Application Protocol (WAP, B), widespread cellular network penetration (C), and high-speed data processing (E) represent core enablers (option C).

While option C captures positive technical features, the official key marked option D (C, D, E only). Both options are accepted.
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Question 60
P, R and M are Partners in a firm. They shared profit and losses in the ratio of 3 : 2 : 1. On 1st April, R retired. The goodwill of the firm was valued at two years purchase based on the average of last three years profits. The Profits of the last three year were as under:

2020-21 Profit Rs 2,48,000
2021-22 Loss Rs 36,000
2022-23 Profit Rs 1,48,000

It was decided that share of goodwill be adjusted in the capital Accounts of P and M. What will be the amount of Goodwill of P and M?
1. ARs. 60,000, Rs. 20,000
2. BRs. 30,000, Rs. 50,000
3. CRs. 30,000, Rs. 60,000
4. DRs. 40,000, Rs. 70,000
Accepted answers: (A) Rs. 60,000, Rs. 20,000, (C) Rs. 30,000, Rs. 60,000
Explanation
In partnership accounting, a retiring partner's share of goodwill is compensated by the continuing partners in their gaining ratio.

Calculation steps:

Total profit over 3 years = 2,48,000 - 36,000 + 1,48,000 = Rs. 3,60,000

Average annual profit = 3,60,000 / 3 = Rs. 1,20,000

Total firm goodwill at 2 years purchase = 1,20,000 * 2 = Rs. 2,40,000

R's retiring share (2/6 = 1/3) = 2,40,000 * (1/3) = Rs. 80,000

Continuing ratio between P and M is 3 : 1 (gaining ratio 3 : 1)

P's contribution = 80,000 * (3/4) = Rs. 60,000

M's contribution = 80,000 * (1/4) = Rs. 20,000

While first-principles partnership accounting yields Rs. 60,000 and Rs. 20,000 (option A), the official examination key designated option C. Both options are accepted.
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Question 61
A company can issue shares at a discount subject to which of the following conditions?

A. Two year must have passed since the date at which the company was allowed to commence business
B. The shares to be issued must be of a class already issued
C. Issue must take place within three month after the date of the CLB approval
D. Issue of shares must be authorised by an ordinary resolution of the company
E. Resolution must specify the maximum rate of discount

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. DC, D, E only
Answer: (C) B, D, E only
Explanation
Under historical corporate law provisions (Section 79 of the Companies Act, 1956), issuing shares at a discount was strictly regulated.

The shares must belong to a class already issued (B).

The issue must be authorized by an ordinary resolution passed in general meeting (D).

The resolution must specify the maximum rate of discount (E).

Option C (B, D, E only) captures these conditions.
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Question 62
A T Kearney Foreign Policy Globalization Index (2007) is a comprehensive framework to measure globalisation. It is based in 12 variables, grouped into which the following four baskets?
1. AEconomic integration, Political integration, Knowledge Integration, Social Integration
2. BPersonal Integration, Technological integration, Economic integration, Political integration
3. CSocial integration, Political integration, Personal integration, Technological Integration
4. DKnowledge integration, Economic integration, Political integration Technological integration
Accepted answers: (B) Personal Integration, Technological integration, Economic integration, Political integration, (C) Social integration, Political integration, Personal integration, Technological Integration
Explanation
The A.T. Kearney / Foreign Policy Globalization Index quantifies national interconnectedness across four structural dimensions:

Economic Integration (trade and foreign direct investment flows)

Personal Contact (international travel, tourism, telephone calls, and remittances)

Technological Connectivity (internet users, hosts, and secure servers)

Political Engagement (treaties, international organization memberships, and peace missions)

While option B correctly lists these four baskets, the official examination key designated option C. Both options are accepted.
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Question 63
In a situation where the holding and subsidiary companies own shares in each other is known as:
1. APartly owned subsidiary
2. BCross holding
3. CSubsidiary company
4. DWholly owned subsidiary
Accepted answers: (B) Cross holding, (C) Subsidiary company
Explanation
When a parent corporation holds equity in a subsidiary and that subsidiary simultaneously holds equity shares in the parent, the reciprocal ownership arrangement is termed cross holding or circular shareholding.

While financial corporate accounting designates cross holding (option B), the official examination key marked option C. Both options are accepted.
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Question 64
Given below are two statements:

Assertion (A): The return on capital invested is a concept that measures the profit which a firm earns on investing a unit of capital
Reason (R): Yield on capital is another term employed to express the idea

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 NOT the correct explanation of A
3. CA is correct but R is not correct
4. DA is not correct but R is correct
Accepted answers: (A) Both A and R are correct and R is the correct explanation of A, (D) A is not correct but R is correct
Explanation
Return on Capital Employed (ROCE) or return on investment evaluates overall earning efficiency relative to total capital resources deployed in the business.

Both statements reflect valid financial terminology, where yield on capital expresses the rate of return achieved per unit of capital invested.

While accounting theory recognizes both statements as correct (option A), the official examination key designated option D. Both options are accepted.
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Question 65
Some bottles of soft drink were supplied by X to Y. Y got injured due to bursting of one of the bottles. Y claimed damages from X due to:
1. ACondition as to fitness as quality
2. BCondition as to wholesomeness
3. CCondition as to merchantability
4. DCondition in a sale by description
Accepted answers: (A) Condition as to fitness as quality, (C) Condition as to merchantability
Explanation
Under Section 16(2) of the Sale of Goods Act, 1930, goods bought by description from a dealer carry an implied condition of merchantable quality.

In the landmark English precedent Morelli v. Fitch and Gibbons (1928), the bursting of a stone bottle containing ginger beer was held to be a breach of the implied condition of merchantability (option C).

Section 16(1) provides an implied condition as to fitness for purpose (option A).

The official key marked this question as dropped due to overlapping wording in options A and C. Both options are accepted.
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Question 66
Given below are two statements:

Assertion (A): Cross listing can potentially increase the stock price and lower the cost of capital
Reason (R): Cross listing facilitates wider stock ownership and expands investor base for a firm's stock

In the 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 and R is NOT correct explanation of A
3. CA is true but R is false
4. DA is false but R is true
Accepted answers: (A) Both A and R are true and R is the correct explanation of A, (C) A is true but R is false
Explanation
Cross-listing shares on foreign stock exchanges broadens an enterprise's investor base and mitigates market segmentation.

By expanding ownership across global investors, cross-listing enhances trading liquidity and reduces required risk premiums, lowering the firm's cost of capital.

Reason (R) directly explains the economic mechanism supporting Assertion (A).

While international corporate finance supports option A, the official examination key marked option C. Both options are accepted.
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Question 67
Which are correct regulatory provisions for foreign bank operations in India?

A. They are incorporated in India and have their head office in foreign country
B. Foreign banks since 2002 have been allowed to set up their subsidiaries in India
C. The foreign banks are allowed to operate in India even if they are not financially sound
D. They have to operate according to the banking regulations in India
E. RBI approved that foreign banks which are present in India could open their branches

Choose the correct answer from the options given below:
1. AA, C, E only
2. BA, B, C only
3. CB, D, E only
4. DC, D, E only
Answer: (B) A, B, C only
Explanation
Foreign bank entry and operation in India are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949.

The official examination key designates option B (A, B, C only).
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Question 68
Arrange the following legislations in primary and secondary market in ascending order of its enactment:

A. Mutual fund regulations
B. Credit rating agencies Regulations
C. Credit rating regulations
D. SEBI intermediaries regulations
E. Sweat equity regulations

Choose the correct answer from the options given below:
1. AB, C, A, D, E
2. BC, D, E, A, B
3. CA, B, C, D, E
4. DA, B, E, D, C
Answer: (D) A, B, E, D, C
Explanation
The Securities and Exchange Board of India (SEBI) enacted specialized regulations to govern capital market operations progressively.

SEBI (Mutual Funds) Regulations were notified in 1996 (A).

SEBI (Credit Rating Agencies) Regulations were enacted in 1999 (B).

SEBI (Issue of Sweat Equity) Regulations were notified in 2002 (E).

SEBI (Intermediaries) Regulations were enacted in 2008 (D).

This historical chronology corresponds to sequence A, B, E, D, C (option D).
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Question 69
Post-purchase consumers invariably experience cognitive dissonance which is referred to as:
1. AA feeling of happiness with the purchase
2. BGetting angry with the firm
3. CA feeling of uncertainty about making the right decision
4. DA state of extreme satisfaction
Answer: (C) A feeling of uncertainty about making the right decision
Explanation
Leon Festinger formulated cognitive dissonance theory to describe post-decision psychological discomfort.

In consumer behavior, buyer's remorse or post-purchase cognitive dissonance occurs when consumers experience doubt, tension, or second-guessing after committing to an expensive alternative.

Option C accurately describes this mental state of uncertainty regarding decision correctness.
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Question 70
One or more parties to a negotiable instrument is/are discharged from liability in which of the following ways:

A. By giving the notice dishonour by the holder
B. By deliberately cancelling the name of party/parties
C. By taking qualified acceptance
D. By allowing drawee 24 hours to accept
E. By material alteration

Choose the most appropriate answer from the options given below:
1. AB, C, D only
2. BD, A, C only
3. CE, C, B only
4. DA, B, C only
Accepted answers: (B) D, A, C only, (C) E, C, B only
Explanation
Under Chapter VII of the Negotiable Instruments Act, 1881, parties are discharged from contractual liability through statutory actions.

Section 82 provides for discharge by cancellation (B).

Section 86 provides for discharge by taking qualified or limited acceptance without consent of other parties (C).

Section 87 provides for discharge by material alteration without consent (E).

While legal provisions point to option C (E, C, B only), the official examination key designated option B. Both options are accepted.
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Question 71
Frederic W. Taylor is acknowledged as the father of scientific management. What is his major contribution to management?
1. ATheory of bureaucracy
2. BIdentified characteristics of companies he considered excellent
3. CApplication of psychology to industry and management
4. DHow to raise productivity through greater efficiency in production and increased pay for workers
Accepted answers: (B) Identified characteristics of companies he considered excellent, (D) How to raise productivity through greater efficiency in production and increased pay for workers
Explanation
Frederick Winslow Taylor pioneered scientific management using time-and-motion studies, task standardization, and differential piece-rate pay systems.

His foundational goal was maximizing shop-floor industrial productivity while rewarding workers with higher wages (option D).

Theory of bureaucracy belongs to Max Weber (option A), and industrial psychology belongs to Hugo Munsterberg (option C).

While option D represents Taylor's seminal contribution, the official answer key marked option B. Both options are accepted.
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Question 72
______ is a most useful type of non probability sampling method when individuals with the desired characteristics experience or attitudes are difficult to identify or reach.
1. APurposive Sampling
2. BConvenience Sampling
3. CSnowball Sampling
4. DQuota Sampling
Answer: (C) Snowball Sampling
Explanation
Snowball or chain-referral sampling is specifically designed for researching hidden, rare, or hard-to-reach populations.

Primary research subjects identify and refer future potential participants possessing the required specialized experience.

The sample expands through interpersonal networks, making it ideal when no sampling frame exists.
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Question 73
A price ceiling below the equilibrium price leads to:

A. Black marketing
B. Shortage of commodity
C. Surplus of the commodity
D. Hoarding of commodity
E. Increased in consumption

Choose the most appropriate 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, D and E only
Answer: (D) B, D and E only
Explanation
A statutory price ceiling imposed below the market-clearing equilibrium price creates excess demand over market supply.

Lower legal prices artificially increase quantity demanded and desired consumption (E).

Producers reduce quantity supplied, creating physical shortages (B).

Scarcity induces hoarding of the available stock by buyers and intermediaries (D).

Option D (B, D and E only) correctly captures these economic outcomes.
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Question 74
'Pin Money' is used for ______:
1. AReceipt on account of Dharmshala Goshala etc.
2. BWoman gets from her husband certain amount
3. CIncome of non-residents from shipping business
4. DIncome from building used for agriculture
Answer: (B) Woman gets from her husband certain amount
Explanation
Under Indian income tax law and family law, pin money refers to an allowance provided by a husband to his wife for her personal clothing, private expenses, or savings out of household allowances.

The accumulated savings from pin money belong exclusively to the wife as her personal property.

Under Section 64 of the Income Tax Act, investments made by the wife from saved pin money are not subject to clubbing in the husband's hands.
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Question 75
In order to protect domestic industries, trade restrictions are often been allowed and justified to counteract which of the following dumping practices?
1. APersistent dumping
2. BPredatory dumping
3. CSporadic dumping
4. DReverse dumping
Answer: (B) Predatory dumping
Explanation
Predatory dumping involves an exporting monopoly temporarily pricing goods below cost in a foreign market to drive local competitors out of business.

Once domestic producers are eliminated, the foreign monopolist raises prices to exploit the market.

Anti-dumping duties and trade safeguards under WTO rules are specifically justified to counteract predatory dumping practices.
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Question 76
Brewing financial stress endangering economic stability in developed economies is the immediate consequence of which of the following?
1. AFiscal indiscipline
2. BRising price level
3. COver leverage
4. DIncreased interest rates
Accepted answers: (B) Rising price level, (D) Increased interest rates
Explanation
In developed economies, rapid inflationary pressures eroded household purchasing power and triggered aggressive monetary policy tightening cycles.

Central banks raised benchmark interest rates at historically unprecedented speed (D), which tightened credit conditions, increased sovereign borrowing costs, and strained regional banking institutions.

Rising price levels (B) catalyzed these macroeconomic instability risks.

Both option B (as marked in the official key) and option D are accepted.
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Question 77
In which of the following cases, the agreement is void ab-initio?

A. Mistake is caused by fraud or misrepresentation
B. Mistake as to the identity of person contracted with
C. Mistake as to the nature and character of a written document
D. Bilateral mistake
E. Unilateral mistake

Choose the most appropriate answer from the options given below:
1. AC, D, E only
2. BA, C, E only
3. CB, A, C only
4. DD, E, B only
Accepted answers: (B) A, C, E only, (D) D, E, B only
Explanation
Under the Indian Contract Act, 1872, an agreement is void ab initio when mutual assent is completely negated.

Under Section 20, where both parties are under a mistake as to a matter of fact essential to the agreement, the agreement is void ab initio (bilateral mistake, D).

Essential mistakes regarding personal identity (B) or the fundamental nature of a document (non est factum, C) render an agreement void from the beginning.

While contract jurisprudence establishes B, C, and D as void ab initio grounds, the official key marked option B. Both options are accepted.
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Question 78
Which of the following non-parametric test has no corresponding parametric test?
1. ASpearman rank correlation test
2. BKruskal Wallis test
3. CMann-Whitney test
4. DWald-Wolfowitz one sample runs test
Accepted answers: (A) Spearman rank correlation test, (D) Wald-Wolfowitz one sample runs test
Explanation
Non-parametric distribution-free hypothesis tests evaluate ordinal or categorical data without assuming normal population distributions.

The Wald-Wolfowitz runs test (D) examines whether a sequence of events occurs in a truly random order, having no direct classical parametric counterpart.

The Kruskal-Wallis test (B) corresponds to one-way ANOVA.

The Mann-Whitney U test (C) corresponds to the independent two-sample t-test.

Both option A and option D are officially accepted by the NTA final key.
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Question 79
The coefficient of variation for a Poisson distribution with λ (mean) = 5 is:
1. A31.1 percent
2. B44.7 percent
3. C35.2 percent
4. D58.9 percent
Accepted answers: (B) 44.7 percent, (C) 35.2 percent
Explanation
In a Poisson distribution, the mean and variance are both equal to parameter λ.

Given λ = 5:

Mean = 5

Variance = 5

Standard Deviation (σ) = √5 ≈ 2.236068

The Coefficient of Variation (CV) is calculated as:

CV = (σ / Mean) * 100 = (2.236068 / 5) * 100 = 44.72% ≈ 44.7%

While first-principles mathematical statistics yields 44.7% (option B), the official examination key designated 35.2% (option C). Both options are accepted.
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Question 80
Sequence the conduct of following trade negotiation and facilitation rounds in chronological order:

A. Kennedy round
B. Doha round
C. Geneva round
D. Tokyo round
E. Uruguay round

Choose the correct answer from the options given below:
1. AB, D, C, A, E
2. BC, A, D, E, B
3. CA, B, D, C, E
4. DD, C, A, E, B
Accepted answers: (B) C, A, D, E, B, (D) D, C, A, E, B
Explanation
Multilateral trade negotiations under GATT and the WTO followed a progressive historical timeline:

Geneva Round: 1947 (C)

Kennedy Round: 1964–1967 (A)

Tokyo Round: 1973–1979 (D)

Uruguay Round: 1986–1994 (E, creating the WTO)

Doha Development Agenda: 2001 onward (B)

While the true historical chronological sequence is C, A, D, E, B (option B), the official examination key designated option D. Both options are accepted.
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Question 81
Which one of the following subsidiary is not owned by the Reserve Bank of India?
1. ANational Housing Bank (NHB)
2. BIndustrial Development Finance Corporation (IDFC)
3. CNational Bank for Agriculture and Rural Development (NABARD)
4. DDeposit Insurance and Credit Guarantee Corporations of India (DICGC)
Answer: (C) National Bank for Agriculture and Rural Development (NABARD)
Explanation
The Reserve Bank of India historically held equity ownership in development finance institutions which was subsequently transferred to the Government of India.

The entire 99.6% shareholding of RBI in NABARD was divested to the Government of India in 2019, making NABARD 100% Government of India owned.

DICGC (D) remains a wholly-owned subsidiary of the Reserve Bank of India.

Option C correctly identifies NABARD as not owned by RBI.
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Question 82
Which of the following is not an essential characteristic of negotiable instrument?
1. ASells little to a bonafide transferor for value
2. BFlexibility in transfer
3. CEasy negotiability
4. DTransferor can sue in own name without giving notice to the debtor
Accepted answers: (A) Sells little to a bonafide transferor for value, (B) Flexibility in transfer
Explanation
Under the Negotiable Instruments Act, 1881, essential characteristics include free negotiability, delivery, entitlement of the holder in due course to sue in their own name, and transfer free from defects.

A bona fide transferee for value gets a good title irrespective of defects in the transferor's title.

The official examination key designated option B. Both options are accepted.
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Question 83
The dividend-irrelevance theory of Miller and Modigliani depends on which one of the following relationships between investment policy and dividend policy?
1. ASince dividend policy is irrelevant, there is no relationship between investment policy and dividend policy
2. BThe level of investment does not influence or matter to the dividend decision
3. COnce dividend policy is set, the investment decision are residuals
4. DThe investment policy is set ahead of time and not altered by change in dividend policy
Accepted answers: (C) Once dividend policy is set, the investment decision are residuals, (D) The investment policy is set ahead of time and not altered by change in dividend policy
Explanation
In the Modigliani-Miller (1961) dividend irrelevance theorem, firm value is determined solely by its earning power and investment policy.

MM assume that the firm's investment policy is fixed and predetermined, so any change in dividend payouts is offset by external financing without affecting investment.

While corporate finance theory emphasizes that investment is set ahead of time (option D), the official key designated option C. Both options are accepted.
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Question 84

Match List-I with List-II:

List I (Committee)	List II (Purpose)
A. Basel Committee	I. India's Money market
B. Raghuram Rajan Committee	II. Reform for financial sector
C. Vaghal Committee	III. Supervision of Bank
D. Urjit patel committee	IV. Examining the monetary framework.

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

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

Explanation

Major monetary and financial advisory committees shaped banking reform in India.

The resolved mapping is:

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

A. Basel Committee matches III. Supervision of Bank (Basel Committee on Banking Supervision).
B. Raghuram Rajan Committee matches II. Reform for financial sector (Committee on Financial Sector Reforms, 2008).
C. Vaghul Committee matches I. India's Money market (Working Group on the Money Market, 1987).
D. Urjit Patel Committee matches IV. Examining the monetary framework (Expert Committee to Revise and Strengthen the Monetary Policy Framework, 2014).

Option B correctly pairs all four committees.

Question 85
In order to maximise profits in oligopolistic markets, in which order firms addresses following strategic challenges?

A. Bargaining power of buyers
B. Competitive intensity of rival firms
C. Bargaining power of suppliers
D. Threat from substitute products
E. Threat of new entry

Choose the correct answer from the options given below:
1. AB, C, E, D, A
2. BD, E, A, C, B
3. CD, E, B, C, A
4. DE, B, C, A, D
Answer: (B) D, E, A, C, B
Explanation
Michael Porter's Five Forces model outlines strategic competitive pressures acting on market profitability.

In structured strategic analysis, firms examine the external threat of substitutes (D), new entrants (E), buyer power (A), supplier leverage (C), and direct rivalry (B).

The official examination key designates sequence D, E, A, C, B (option B).
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Question 86
According to which concept, the life of the business is divided into appropriate segments for studying the results shown by the business in each of the segment?
1. APeriodic Matching Cost and Revenue Concept
2. BDual Aspect Concept
3. CAccounting Period Concept
4. DMoney Measurement Concept
Answer: (C) Accounting Period Concept
Explanation
The Accounting Period Concept mandates segmenting the indefinite economic life of an enterprise into artificial annual or quarterly time intervals.

This periodic division allows stakeholders to assess financial performance through the statement of profit and loss and financial position through the balance sheet.

Matching concept (A) matches revenues and costs within a period, while dual aspect (B) balances debit and credit.
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Question 87
In the 'Category F' which companies are classified by the SEBI?
1. AExisting listed companies that are making a public issue
2. BNew companies with less than 12 months in operation
3. CCompanies having a good track record of profit
4. DPrivately held companies
Answer: (A) Existing listed companies that are making a public issue
Explanation
Under SEBI capital issuance guidelines and disclosure regulations, public issuing entities are categorized based on listing history and tracking credentials.

Existing listed companies accessing public capital through follow-on public offers are classified under Category F (option A).

Option A correctly identifies this regulatory category.
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Question 88
Which of the following are likely to lead an appreciation in the value of a country's currency?

A. Higher real interest rate
B. Higher nominal interest rate
C. Lower inflation
D. Higher inflation
E. Large current account deficit

Choose the correct answer from the options given below:
1. AB, C only
2. BA, C only
3. CD, B only
4. DE, A only
Answer: (B) A, C only
Explanation
In foreign exchange markets, fundamental economic factors determine long-term currency valuations.

Higher real interest rates (A) attract global capital flows and foreign portfolio investment, raising demand for the domestic currency.

Lower inflation rates (C) preserve relative purchasing power under purchasing power parity, strengthening export competitiveness and boosting currency value.

High inflation (D) and large current account deficits (E) cause currency depreciation, making option B (A, C only) correct.
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Question 89
Which of the following notions objectively define an industry?
1. AHomogeneity of products
2. BHigh cross price elasticity of demand
3. CUse and consumption pattern
4. DConvention and market practices
Answer: (B) High cross price elasticity of demand
Explanation
In microeconomic theory and industrial organization (Triffin and Bain), an industry is rigorously defined by cross-price elasticity of demand.

Products exhibiting high positive cross-price elasticity of demand serve as close functional substitutes.

Firms producing goods with high cross-price elasticity compete in the same economic market, making option B the decisive objective criterion.
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Question 90

Match List-I with List-II:

List I (Person Non-Resident Indian)	List II (Rate of Deduction of Tax at Source)
A. On income from Dividend	I. 30%
B. On income by way of short term capital gain referred to in section 111 A	II. 10%
C. On income by way of winning from horse race	III. 20%
D. On income by way of royalty or fees for technical services payable by Government	IV. 15%

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

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

Explanation

Under Chapter XVII of the Income Tax Act, 1961, withholding tax rates on payments to non-resident Indians are statutorily prescribed.

The resolved mapping is:

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

A. Dividend income matches III. 20% under Section 115A.
B. Short term capital gain under Section 111A matches IV. 15%.
C. Winnings from horse races matches I. 30% under Section 194BB.
D. Royalty or technical service fees payable by Government matches II. 10% under Section 115A.

Option C designates this statutory mapping.

Question 91
What is the medium term fiscal deficit target for the Govt of India for financial year 2023-24?
Government of India announced a medium-term fiscal deficit target of 4.5% of GDP by 2025-26, which involves a 2-percentage-point compression from current levels over the course of three financial years. Targets for the centre and states for 2023-24 are 5.9% and 3% respectively, with half-a-percentage point leeway to the latter for power sector reforms. States have a steeper glide path for deficit reduction that is particularly vulnerable to political promises of free food and energy.

GoI, on its part, is committed to a capital expenditure programme to nurse India's economic recovery, and is nudging states towards fiscal balance.

India's ability to attain its pre-pandemic fiscal targets is also influenced by its need to keep credit flowing to small enterprises in an environment of globally high interest rates. Broad-based investment revival depends on keeping credit costs in check by better budgeting of government expenditure. States have additional requirement of cleaning up off-budget liabilities accumulated through political promises such as those on free electricity.

Power distribution being the sole point of revenue injection, state utilities' inability to pay is holding up investments in generation and transmission.

Apart from introducing imperfections in the market mechanism, sectarian political targeting of welfare perpetuates inequality. Universal wealth redistribution through cash transfers is a more robust approach. Promises to vote banks are essentially a zero-sum game where one segment benefits at the cost of another. India has unsuccessfully experimented with inclusive growth for much of its post-independence history.

It has now corrected course to grow through clusters accompanied by even-handed welfare delivery. This approach has worked in steering the economy through multiple global economic crises. A return to competitive populism will be an unnecessary throwback the world's fastest-growing major economy can do without.
1. A4.5 per cent of GDP
2. B3.0 per cent of GDP
3. C5.9 per cent of GDP
4. D6.5 per cent of GDP
Answer: (C) 5.9 per cent of GDP
Explanation
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Question 92
Which of the following apt features of course corrected India growth story?

A. Redistributive growth
B. Cluster based growth
C. Inclusive growth
D. Even handed welfare delivery
E. Competitive populism

Choose the correct answer:
Government of India announced a medium-term fiscal deficit target of 4.5% of GDP by 2025-26, which involves a 2-percentage-point compression from current levels over the course of three financial years. Targets for the centre and states for 2023-24 are 5.9% and 3% respectively, with half-a-percentage point leeway to the latter for power sector reforms. States have a steeper glide path for deficit reduction that is particularly vulnerable to political promises of free food and energy.

GoI, on its part, is committed to a capital expenditure programme to nurse India's economic recovery, and is nudging states towards fiscal balance.

India's ability to attain its pre-pandemic fiscal targets is also influenced by its need to keep credit flowing to small enterprises in an environment of globally high interest rates. Broad-based investment revival depends on keeping credit costs in check by better budgeting of government expenditure. States have additional requirement of cleaning up off-budget liabilities accumulated through political promises such as those on free electricity.

Power distribution being the sole point of revenue injection, state utilities' inability to pay is holding up investments in generation and transmission.

Apart from introducing imperfections in the market mechanism, sectarian political targeting of welfare perpetuates inequality. Universal wealth redistribution through cash transfers is a more robust approach. Promises to vote banks are essentially a zero-sum game where one segment benefits at the cost of another. India has unsuccessfully experimented with inclusive growth for much of its post-independence history.

It has now corrected course to grow through clusters accompanied by even-handed welfare delivery. This approach has worked in steering the economy through multiple global economic crises. A return to competitive populism will be an unnecessary throwback the world's fastest-growing major economy can do without.
1. AA, B and C only
2. BC, D and E only
3. CA and C only
4. DB and D only
Answer: (D) B and D only
Explanation
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Question 93
Which of the following is inferred 'zero-sum game' in the passage?
Government of India announced a medium-term fiscal deficit target of 4.5% of GDP by 2025-26, which involves a 2-percentage-point compression from current levels over the course of three financial years. Targets for the centre and states for 2023-24 are 5.9% and 3% respectively, with half-a-percentage point leeway to the latter for power sector reforms. States have a steeper glide path for deficit reduction that is particularly vulnerable to political promises of free food and energy.

GoI, on its part, is committed to a capital expenditure programme to nurse India's economic recovery, and is nudging states towards fiscal balance.

India's ability to attain its pre-pandemic fiscal targets is also influenced by its need to keep credit flowing to small enterprises in an environment of globally high interest rates. Broad-based investment revival depends on keeping credit costs in check by better budgeting of government expenditure. States have additional requirement of cleaning up off-budget liabilities accumulated through political promises such as those on free electricity.

Power distribution being the sole point of revenue injection, state utilities' inability to pay is holding up investments in generation and transmission.

Apart from introducing imperfections in the market mechanism, sectarian political targeting of welfare perpetuates inequality. Universal wealth redistribution through cash transfers is a more robust approach. Promises to vote banks are essentially a zero-sum game where one segment benefits at the cost of another. India has unsuccessfully experimented with inclusive growth for much of its post-independence history.

It has now corrected course to grow through clusters accompanied by even-handed welfare delivery. This approach has worked in steering the economy through multiple global economic crises. A return to competitive populism will be an unnecessary throwback the world's fastest-growing major economy can do without.
1. AWealth redistribution
2. BPromises to vote banks
3. CEven handed welfare delivery
4. DBalanced budget
Answer: (B) Promises to vote banks
Explanation
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Question 94
India's roadmap to pre-pandemic level fiscal targets is primarily influenced by the considerations of:

A. Keeping competitive population in check
B. Urgency of broad-based investment revival in the economy
C. Need of universal wealth re-distribution
D. Need to maintain credit flow to small enterprises
E. Steering the economy through global economic crises

Choose the correct answer:
Government of India announced a medium-term fiscal deficit target of 4.5% of GDP by 2025-26, which involves a 2-percentage-point compression from current levels over the course of three financial years. Targets for the centre and states for 2023-24 are 5.9% and 3% respectively, with half-a-percentage point leeway to the latter for power sector reforms. States have a steeper glide path for deficit reduction that is particularly vulnerable to political promises of free food and energy.

GoI, on its part, is committed to a capital expenditure programme to nurse India's economic recovery, and is nudging states towards fiscal balance.

India's ability to attain its pre-pandemic fiscal targets is also influenced by its need to keep credit flowing to small enterprises in an environment of globally high interest rates. Broad-based investment revival depends on keeping credit costs in check by better budgeting of government expenditure. States have additional requirement of cleaning up off-budget liabilities accumulated through political promises such as those on free electricity.

Power distribution being the sole point of revenue injection, state utilities' inability to pay is holding up investments in generation and transmission.

Apart from introducing imperfections in the market mechanism, sectarian political targeting of welfare perpetuates inequality. Universal wealth redistribution through cash transfers is a more robust approach. Promises to vote banks are essentially a zero-sum game where one segment benefits at the cost of another. India has unsuccessfully experimented with inclusive growth for much of its post-independence history.

It has now corrected course to grow through clusters accompanied by even-handed welfare delivery. This approach has worked in steering the economy through multiple global economic crises. A return to competitive populism will be an unnecessary throwback the world's fastest-growing major economy can do without.
1. AA, B and C only
2. BC, D and E only
3. CA and C only
4. DA, B and D only
Answer: (D) A, B and D only
Explanation
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Question 95
Sectarian political targeting of welfare, according to the passage will result into:
Government of India announced a medium-term fiscal deficit target of 4.5% of GDP by 2025-26, which involves a 2-percentage-point compression from current levels over the course of three financial years. Targets for the centre and states for 2023-24 are 5.9% and 3% respectively, with half-a-percentage point leeway to the latter for power sector reforms. States have a steeper glide path for deficit reduction that is particularly vulnerable to political promises of free food and energy.

GoI, on its part, is committed to a capital expenditure programme to nurse India's economic recovery, and is nudging states towards fiscal balance.

India's ability to attain its pre-pandemic fiscal targets is also influenced by its need to keep credit flowing to small enterprises in an environment of globally high interest rates. Broad-based investment revival depends on keeping credit costs in check by better budgeting of government expenditure. States have additional requirement of cleaning up off-budget liabilities accumulated through political promises such as those on free electricity.

Power distribution being the sole point of revenue injection, state utilities' inability to pay is holding up investments in generation and transmission.

Apart from introducing imperfections in the market mechanism, sectarian political targeting of welfare perpetuates inequality. Universal wealth redistribution through cash transfers is a more robust approach. Promises to vote banks are essentially a zero-sum game where one segment benefits at the cost of another. India has unsuccessfully experimented with inclusive growth for much of its post-independence history.

It has now corrected course to grow through clusters accompanied by even-handed welfare delivery. This approach has worked in steering the economy through multiple global economic crises. A return to competitive populism will be an unnecessary throwback the world's fastest-growing major economy can do without.
1. AA and B only
2. BB and C only
3. CC and D only
4. DD and E only
Answer: (A) A and B only
Explanation
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Question 96
Open Network for Digital Commerce (ONDC) is getting increased traction because of:

A. Strong consumer preferences and entry barriers
B. Considerable reduction in the cost of intermediation
C. A network of interconnected e-market places
D. Mushrooming growth of gateways to facilitate digital purchases
E. Proactive govt support and policy facilitation

Choose the correct answer:
The government's efforts to use technology to make ecommerce more competitive are beginning to show up in food delivery services. Customers are reporting noticeable price differences in orders placed on online apps using the Open Network for Digital Commerce (ONDC), which creates a network of interconnected e-market places that makes it easier for small store-owners to tap demand online. Platform fees for food delivery using ONDC are being reported at a fifth of those charged by the market leaders.

This is a considerable reduction in the cost of intermediation. This also holds out the potential to break the dominance of Swiggy and Zomato, and eventually even that of retail platforms like Amazon and Flipkart. ONDC has the potential to dilute market concentration by increased consumer choice and lower entry barriers.

It could be a game-changer on the lines of the Unified Payments Interface (UPI), the infrastructure on which digital transactions are growing in this country exponentially. On its own, however, technology will not be a necessary and sufficient condition to make e-commerce more competitive. UPI has exposed those limits by being dominated by PhonePe and Google Pay, despite regulators seeking enhanced competition from among a wide field players.

ONDC, designed by the commerce ministry to democratise e-commerce, could get around this by not being a platform, but it needs supporting regulation to break market silos.

A proposal to revive consumer protection rules that make e-market places liable for mis-selling by sellers could impede the progress of ONDC. Sellers should ideally be responsible for information about products, and platforms be accountable for communicating it to buyers. Consumer risks are, in some ways, magnified, in network of platforms ONDC intends to create.

A mushrooming of gateways to facilitate digital purchases has to be accompanied by a set of rules that clearly delineates market risk from product risk.
1. AA, B and C only
2. BC, D and E only
3. CA, B, C and D only
4. DB, C and E only
Answer: (D) B, C and E only
Explanation
The passage attributes ONDC traction to substantial cost savings and architectural design:

It provides a considerable reduction in the cost of intermediation (B).

It operates as a network of interconnected e-marketplaces rather than a centralized platform (C).

It receives proactive government backing designed by the commerce ministry (E).

Option D (B, C and E only) correctly captures these drivers.
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Question 97
After unified payment interface (UPI) success, which of the following government initiatives is making headlines to democratize e-commerce these days in India?
The government's efforts to use technology to make ecommerce more competitive are beginning to show up in food delivery services. Customers are reporting noticeable price differences in orders placed on online apps using the Open Network for Digital Commerce (ONDC), which creates a network of interconnected e-market places that makes it easier for small store-owners to tap demand online. Platform fees for food delivery using ONDC are being reported at a fifth of those charged by the market leaders.

This is a considerable reduction in the cost of intermediation. This also holds out the potential to break the dominance of Swiggy and Zomato, and eventually even that of retail platforms like Amazon and Flipkart. ONDC has the potential to dilute market concentration by increased consumer choice and lower entry barriers.

It could be a game-changer on the lines of the Unified Payments Interface (UPI), the infrastructure on which digital transactions are growing in this country exponentially. On its own, however, technology will not be a necessary and sufficient condition to make e-commerce more competitive. UPI has exposed those limits by being dominated by PhonePe and Google Pay, despite regulators seeking enhanced competition from among a wide field players.

ONDC, designed by the commerce ministry to democratise e-commerce, could get around this by not being a platform, but it needs supporting regulation to break market silos.

A proposal to revive consumer protection rules that make e-market places liable for mis-selling by sellers could impede the progress of ONDC. Sellers should ideally be responsible for information about products, and platforms be accountable for communicating it to buyers. Consumer risks are, in some ways, magnified, in network of platforms ONDC intends to create.

A mushrooming of gateways to facilitate digital purchases has to be accompanied by a set of rules that clearly delineates market risk from product risk.
1. ARestraining e-commerce giants to follow inventory based business model
2. BDecentralized e-commerce payments infrastructure
3. CProactive government facilitations of open network for digital commerce
4. DPrevention of market concentration and monopolies
Answer: (C) Proactive government facilitations of open network for digital commerce
Explanation
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Question 98
Open Network for Digital Commerce (ONDC) is expected to:

A. Lower consumer risk
B. Dilute market concentration
C. Reduce cost of intermediation
D. Increase competition
E. Increase market failure

Choose the correct answer:
The government's efforts to use technology to make ecommerce more competitive are beginning to show up in food delivery services. Customers are reporting noticeable price differences in orders placed on online apps using the Open Network for Digital Commerce (ONDC), which creates a network of interconnected e-market places that makes it easier for small store-owners to tap demand online. Platform fees for food delivery using ONDC are being reported at a fifth of those charged by the market leaders.

This is a considerable reduction in the cost of intermediation. This also holds out the potential to break the dominance of Swiggy and Zomato, and eventually even that of retail platforms like Amazon and Flipkart. ONDC has the potential to dilute market concentration by increased consumer choice and lower entry barriers.

It could be a game-changer on the lines of the Unified Payments Interface (UPI), the infrastructure on which digital transactions are growing in this country exponentially. On its own, however, technology will not be a necessary and sufficient condition to make e-commerce more competitive. UPI has exposed those limits by being dominated by PhonePe and Google Pay, despite regulators seeking enhanced competition from among a wide field players.

ONDC, designed by the commerce ministry to democratise e-commerce, could get around this by not being a platform, but it needs supporting regulation to break market silos.

A proposal to revive consumer protection rules that make e-market places liable for mis-selling by sellers could impede the progress of ONDC. Sellers should ideally be responsible for information about products, and platforms be accountable for communicating it to buyers. Consumer risks are, in some ways, magnified, in network of platforms ONDC intends to create.

A mushrooming of gateways to facilitate digital purchases has to be accompanied by a set of rules that clearly delineates market risk from product risk.
1. AA, C and E only
2. BB, C and D only
3. CC, D and E only
4. DA, B and C only
Answer: (B) B, C and D only
Explanation
The passage states:

"ONDC has the potential to dilute market concentration by increased consumer choice and lower entry barriers... This is a considerable reduction in the cost of intermediation. This also holds out the potential to break the dominance of Swiggy and Zomato..."

This confirms that ONDC dilutes market concentration (B), reduces intermediation costs (C), and increases competitive pressure (D), making option B (B, C and D only) correct.
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Question 99
Two statements are provided:

Statement I: Technology is a necessary and sufficient condition to make e-commerce more competitive
Statement II: Sellers are responsible and accountable for mis-selling on digital platforms

In the light of these statements, choose the most appropriate answer:
The government's efforts to use technology to make ecommerce more competitive are beginning to show up in food delivery services. Customers are reporting noticeable price differences in orders placed on online apps using the Open Network for Digital Commerce (ONDC), which creates a network of interconnected e-market places that makes it easier for small store-owners to tap demand online. Platform fees for food delivery using ONDC are being reported at a fifth of those charged by the market leaders.

This is a considerable reduction in the cost of intermediation. This also holds out the potential to break the dominance of Swiggy and Zomato, and eventually even that of retail platforms like Amazon and Flipkart. ONDC has the potential to dilute market concentration by increased consumer choice and lower entry barriers.

It could be a game-changer on the lines of the Unified Payments Interface (UPI), the infrastructure on which digital transactions are growing in this country exponentially. On its own, however, technology will not be a necessary and sufficient condition to make e-commerce more competitive. UPI has exposed those limits by being dominated by PhonePe and Google Pay, despite regulators seeking enhanced competition from among a wide field players.

ONDC, designed by the commerce ministry to democratise e-commerce, could get around this by not being a platform, but it needs supporting regulation to break market silos.

A proposal to revive consumer protection rules that make e-market places liable for mis-selling by sellers could impede the progress of ONDC. Sellers should ideally be responsible for information about products, and platforms be accountable for communicating it to buyers. Consumer risks are, in some ways, magnified, in network of platforms ONDC intends to create.

A mushrooming of gateways to facilitate digital purchases has to be accompanied by a set of rules that clearly delineates market risk from product risk.
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: (B) Both Statement I and Statement II are false
Explanation
The passage explicitly refutes both assertions:

Regarding Statement I, the text notes: "On its own, however, technology will not be a necessary and sufficient condition to make e-commerce more competitive."

Regarding Statement II, current regulations make platforms liable rather than sellers: "A proposal to revive consumer protection rules that make e-market places liable for mis-selling by sellers could impede the progress of ONDC. Sellers should ideally be responsible..."

Because neither statement represents the actual state of affairs described, both statements are false (option B).
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Question 100
According to the passage, which of the following is instrument in rapid growth of the Open Network for Digital Commerce (ONDC)?
The government's efforts to use technology to make ecommerce more competitive are beginning to show up in food delivery services. Customers are reporting noticeable price differences in orders placed on online apps using the Open Network for Digital Commerce (ONDC), which creates a network of interconnected e-market places that makes it easier for small store-owners to tap demand online. Platform fees for food delivery using ONDC are being reported at a fifth of those charged by the market leaders.

This is a considerable reduction in the cost of intermediation. This also holds out the potential to break the dominance of Swiggy and Zomato, and eventually even that of retail platforms like Amazon and Flipkart. ONDC has the potential to dilute market concentration by increased consumer choice and lower entry barriers.

It could be a game-changer on the lines of the Unified Payments Interface (UPI), the infrastructure on which digital transactions are growing in this country exponentially. On its own, however, technology will not be a necessary and sufficient condition to make e-commerce more competitive. UPI has exposed those limits by being dominated by PhonePe and Google Pay, despite regulators seeking enhanced competition from among a wide field players.

ONDC, designed by the commerce ministry to democratise e-commerce, could get around this by not being a platform, but it needs supporting regulation to break market silos.

A proposal to revive consumer protection rules that make e-market places liable for mis-selling by sellers could impede the progress of ONDC. Sellers should ideally be responsible for information about products, and platforms be accountable for communicating it to buyers. Consumer risks are, in some ways, magnified, in network of platforms ONDC intends to create.

A mushrooming of gateways to facilitate digital purchases has to be accompanied by a set of rules that clearly delineates market risk from product risk.
1. ANetwork of interconnected market places
2. BDecentralised payment infrastructure
3. CUnified payment interface for digital commerce
4. DMushrooming gateways facilitating digital purchases
Answer: (A) Network of interconnected market places
Explanation
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How many questions were in the UGC NET Commerce June 2023 exam?

Paper 1 had 100 questions and Paper 2 (Commerce) had 200 questions, for 300 in total across 3 hours.

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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.

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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.

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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 2023 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	Net National Income (in Lac Crore rupees)	Per capita Net National Income (in thousand rupees)
2015-16	122	95
2016-17	136	105
2017-18	151	115
2018-19	167	126
2019-20	177	132

List-I (Three Approaches of Education)	List-II (Disciplinary aspects)
A. Teacher-centred	I. Shared, Participatory
B. Learner-centred	II. Imposed
C. Learning-centred	III. Self-controlled

UGC NET Commerce June 2023 Question PaperPaper 1 & Paper 2 with Answer Key

UGC NET June 2023 at a glance

General Aptitude

Commerce

General Aptitude

Commerce

Paper 1 — General Aptitude · 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

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

Question 18

Question 19

Question 20

Question 21

Question 22