UGC NET COMMERCE
SOLVED PAPERS
PAPER.II
Note : This paper contains fifty (50) objective-type questions,
each question carrying two (2) marks. Attempt all
of them.
1. __________ is a permanent
inter-governmental body governing and regulating international trade in goods
and services.
(A) G.A.T.T. (B) EXIM Bank (C)
W.T.O. (D) I.M.F.
2. Fiscal deficit in the Union
Budget means :
(A) The sum of budgetary
deficit and net increase in internal and external borrowings
(B) The difference between
current expenditure and current revenue
(C) The sum of monetised
deficit and budgetary deficit
(D) Net increase in Union
Government borrowings from the Reserve Bank of India
3. The objective of __________ is
to achieve “growth with equity”.
(A) The Ninth Plan (B) The Tenth Plan
(C) The Eighth Plan (D) The
Seventh Plan
4. The significant development in
the sphere of foreign exchange was the introduction of __________ .
(A) Foreign Exchange
Regulation Act (FERA)
(B) Foreign Exchange Management
Act (FEMA)
(C) The Export-Import Policy,
2005-06
(D) EXIM Bank
5. The term “industrial policy” refers
to :
(A) the rules and regulations
relating to the establishment of industrial undertakings and their expansion
(B) remove the structural, financial,
fiscal, administrative, infra structure related impediments to the efficient functioning
of a market oriented economy
(C) the culmination of
liberalisation programme
(D) increase the efficiency of
public sector undertakings
6. Who are the customers of cost
and management accounting?
(A) Managers (B) Creditors (C) Lenders (D)
Consumers
7. Which of the following is an
efficiency ratio ?
(A) Price-Earning Ratio (B)
Debt-Equity Ratio
(C) Acid-Test Ratio (D)
Average collection period
8. What do you mean by “cash equivalents”?
(A) Bank balance (B)
Short -term highly liquid securities
(C) Investments (D) Investment
in debentures
9. The profits calculated by
marginal costing and absorption costing are different because of:
(A) Capital and revenue (B)
Opening stock
(C) Valuation of stock (D)
Closing stock
10. Match the items from List-I
with the items in List-II :
List - I List - II
(a) Error of Principle (i) A
purchase of Rs. 1000/- has not been recorded
(b) Error of Commission (ii)
Treating repair charges as addition to assets
(c) Error of Omission (iii) A
sale of Rs. 563 was posted as Rs. 653
(d) Compensatory error (iv)
Sales book is undercast by Rs. 1000/- and return inward book is overcast by Rs.
1000
(v) Return inward
book is undercast
by Rs. 1000/- and purchase book is overcast by Rs.1000/-
Codes :
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (ii) (iii) (iv) (v)
(C) (iv) (ii) (i) (iii)
(D) (ii) (iii) (i) (v)
11. Which of the following is not
the method of forecasting demand ?
(A) Collective opinion method (B)
Total outlay method
(C) Expert opinion method (D)
Controlled opinion method
12. When marginal utility is
negative then total utility ?
(A) increases (B)
decreases (C) is zero (D) is negative
13. Which of the following is a
correct statement ?
(A) Decrease in input prices
causes a leftward shift in the supply curve
(B) The desire for a commodity
backed by ability and willingness to pay is demand
(C) When income increases, the
demand for essential goods increases more than proportionately
(D) The demand for a commodity
is inversely related to the price of its substitutes
14. When goods in the domestic
market are sold at a high price and in the foreign market at a low price, it is
a situation of:
(A) Dumping (B) Perfect competition
(C) Oligopoly (D) Duopoly
15. Average revenue curve will not
touch 0 - X axis because it cannot be :
(A) Positive (B)
Zero
(C) Negative (D) None of the
above
16. “Parameter” refers to the
characteristics of the :
(A) Population (B) Sample
(C) Mean (D) None of the above
17. The median of 10, 12, 14, 16, and
18 will be :
(A) 12 (B) 16 (C) 15 (D)
14
18. Probability sampling and
random sampling are :
(A) Anonymous (B) Different
terms
(C) Synonymous (D) None of the above
19. “F” ratio refers to :
(A) ratio between two means
(B) ratio between two standard deviations
(C) ratio between two
correlations (D) ratio between two variances
20. Match the items from List-I
with the items in List-II.
List - I List - II
(a) t-test (i) secondary data
(b) Regression test (ii)
systematic sampling
(c) Published sources (iii)
hypothesis test
(d) Probability sampling (iv)
quota sampling
(v) multi-variable analysis
Code :
(a) (b) (c) (d)
(A) (v) (ii) (i) (iv)
(B) (v) (iii) (i) (iv)
(C) (iii) (v) (i) (ii)
(D) (v) (ii) (i) (iv)
21. The Plan for meeting the
challenges of the competitors is called a :
(A) Programme (B) Mission
(C) Derivative Plan (D)
Strategy
22. The chief contribution of
Henry Fayol to management is that he :
(A) provided a conceptual
frame-work
(B) formulated the management
process approach
(C) evolved two principles of
management
(D) stressed the need for
management education based on management
23. Which type of managerial
decision correspond to .basic decisions. ?
(A) Mechanical decision and
analytic decision
(B) Judicious decision and
adoptive decision
(C) Judicious decision,
adoptive decision and analytic decision
(D) All of the above
24. The process of combining the
main industrial unit with all other related units is called :
(A) Divergent Lateral
combination (B) Convergent Lateral combination
(C) Horizontal combination (D)
Vertical combination
25. The lack of faith and
confidence of managers in subordinates is an important barrier of :
(A) Effective leadership (B)
Effective control
(C) Effective delegation (D) Effective direction
26. Post purchase dissatisfaction
in marketing is known as :
(A) Caveat emptor (B)
Cognitive dissonance
(C) Brand III loyalty (D) None
of the above
27. Needs for goods and services
are more homogenous in :
(A) Industrial market (B) Consumer market
(C) Domestic market (D) None
of the above
28. Marketing concept means :
(A) Firms should produce only
what their pre-determined consumers would be willing to buy
(B) Firms should persuade customers
to buy what they have produced
(C) The consumers will buy the
products which offer them the highest quality
(D) All of the above
29. The process of dividing a
potential market into distinct subsets of consumers and selecting one or more
segments as a target to be reached with a distinct marketing mix means :
(A) Marketing (B) Positioning
(C) Targeting (D) None of the above
30. What is the basis for
segmenting vitamin market ?
(A) Age (B) Place of distribution
(C) Formulation (D) All of the
above
31. Financial Risk means :
(A) Risk of Technical
insolvency (B) Magnify the fluctuation in EBT
(C) Both (A) and (B) (D) None
of the above
32. The financial management is
concerned with the:
(A) Procurement of funds and
their effective utilisation
(B) Raising of funds from the
market
(C) Management of Working
Funds only
(D) Investing funds in the
most appropriate assets
33. M.M. Approach is similar to
__________ approach.
(A) Net Income Approach (B)
Net Operating Income Approach
(C) Both (A) and (B) (D) None
of the above
34. If the sales are Rs. 6000,
variable cost Rs. 3600 and fixed cost Rs. 2000, the Break-even point will be :
(A) 5000 units (B) 5400
units (C) 6000 units (D) 4000 units
35. Which is an incorrect
statement ?
(A) The issue of Bonus shares
is subject to sanction from the SEBI
(B) The prior approval of
capitalisation of reserves upto Rs. 1 crore is totally exempted
(C) Bonus issues beyond the
ratio of 1:1 is not permitted
(D) Partly paid equity shares
are issued as bonus shares
36. Job analysis provides
information used for writing :
(A) Organisation chart (B)
Policy
(C) Job Description (D) Procedure
37. Recruitment and selection
involves the following except :
(A) Building a pool of
candidates
(B) Completing application
forms by applicants
(C) Reduction of the work
force
(D) Employment planning and
forecasting
38. __________ is the process of
deciding how to fill the company’s most important executive positions.
(A) Succession Planning (B) Organisational
Restructuring
(C) Self-directed Teams (D)
Corporate Downsizing
39. Which of the following is not
necessary for promotion from within ?
(A) Job posting (B)
Advertisements
(C) Personnel Records (D)
Performance Appraisal Form
40. Performance appraisal means
evaluating an employee’s performance relative to :
(A) Established goods (B)
Fellow employees
(C) Job description
requirements (D) Performance standards
41. A __________ card is basically
a payment mechanism which allows the holder of the card to make purchases
without any immediate cash payment.
(A) ATM (B) CREDIT (C) DEBIT (D)
KISAN CREDIT
42. Which of the following is a
measure of selective credit control ?
(A) Bank rate policy (B)
Moral suasion
(C) Statutory cash reserve
ratio (D) Open market operations
43. Which of the following
sentence is false ?
(A) Nationalisation of
commercial banks has achieved its objectives
(B) Prior to nationalisation,
commercial banks in India were generally concerned with profit maximisation
only
(C) Nationalisation has
enhanced the efficiency of commercial banks
(D) Bank nationalisation in
India was prompted by the necessity of credit facilities reaching the rural
sector and weaker sections of the society
44. Which of the following
statement is true ?
(A) The currency notes issued
by RBI are legal tender throughout the world
(B) The treasury bills are
sold by the RBI for raising its working capital
(C) All commercial banks,
including those owned by Government, need a license from the RBI to do banking
business.
(D) The RBI is a banker to both
central and state governments
45. M. Narasimham headed :
(A) The working group
constituted by the Government of India in July 1975 for the establishment of
Regional Rural Banks
(B) The committee on the
financial system, 1991
(C) The committee on Banking
Sector Reforms, 1997
(D) All of the above
46. The gains from two nations
depend on :
(A) Domestic barter rates
(B) Difference in the domestic
barter rates of the two countries
(C) Terms of trade
(D) Degree of absolute
advantage
47. The trade theory of
comparative advantage was developed by :
(A) Haberler (B) Adam Smith
(C) Alfred Marshall (D)
David Ricardo
48. Which items are included in
the negative list of imports out of the combination given below :
(1) Canalised items
(2) Banned items
(3) Restricted items
(4) Items of open General
Licence
(A) 1, 3 and 4 (B) 2, 3 and 4
(C) 1, 2, 3 and 4 (D)
1, 2 and 3
49. If a country has deficit in
balance of current account, balance of capital account will be :
(A) Zero (B) Surplus (C) Deficit
(D) None of the above
50. When custom duty is levied
according to weight of goods it is known as :
(A) Excise duty (B) Ad-valorem
duty
(C) Revenue duty (D)
Specific duty