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Common University Entrance Test (UG)

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16 Views

Question : The wealth effect suggests that an increase in the price level leads to:

Option 1: A decrease in consumption expenditure
 

Option 2: An increase in consumption expenditure
 

Option 3: A decrease in investment expenditure

  

Option 4: An increase in investment expenditure

Team Careers360 27th Jan, 2024

Correct Answer: A decrease in consumption expenditure
 


Solution : The correct answer is (a) A decrease in consumption expenditure.

The wealth effect suggests that an increase in the price level leads to a decrease in consumption expenditure. This effect occurs because as the price level rises, the purchasing power of individuals' wealth diminishes. In other words, their money can buy fewer goods and services.

When people perceive that their wealth has decreased in terms of real purchasing power, they tend to reduce their consumption expenditure. This is because they feel relatively poorer and have less disposable income available for spending. As a result, the overall level of consumption expenditure in the economy decreases.

11 Views

Question : The function of credit rating agencies is to:

Option 1: Regulate stockbrokers
   

Option 2: Issue government bonds
 

Option 3: Provide investment advice to investors

  

Option 4: Assess the creditworthiness of issuers

Team Careers360 26th Jan, 2024

Correct Answer: Assess the creditworthiness of issuers


Solution : The correct answer is (d) Assess the creditworthiness of issuers.

The primary function of credit rating agencies is to assess the creditworthiness of issuers, such as companies or governments, and assign credit ratings to their debt instruments. Credit rating agencies analyze the financial condition, business operations, and other relevant factors of the issuer to determine the likelihood of timely repayment of the issuer's debt obligations.Based on their analysis, credit rating agencies assign credit ratings to the issuer's debt instruments, such as bonds or other types of securities. These credit ratings provide an assessment of the issuer's ability to meet its financial obligations and serve as an indicator of the risk associated with investing in those debt instruments.

6 Views

Question : Statement 1: The 1991 economic policy aimed to address the balance of payments crisis in India.

Statement 2: The economic reforms of 1991 were initiated under the leadership of Rajiv Gandhi.

 

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.

Team Careers360 27th Jan, 2024

Correct Answer: Both statements are true.


Solution : The correct answer is (a) Both statements are true.

Statement 1 is true: The 1991 economic policy in India was introduced to address the balance of payments crisis. India was facing severe economic difficulties, including a high fiscal deficit and a balance of payments crisis, which necessitated the implementation of economic reforms.

Statement 2 is also true: The economic reforms of 1991 were initiated under the leadership of Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh. Rajiv Gandhi was the Prime Minister of India from 1984 to 1989 and was not in power during the period when the economic reforms were implemented.

 

14 Views

Question : Which environment includes factors that directly affect the day-to-day operations of an organization?
 

 


 

Option 1: Internal environment

Option 2: Macro environment

Option 3: Micro environment

 

Option 4: Competitive environment

Team Careers360 27th Jan, 2024

Correct Answer: Micro environment

 


Solution : The correct answer is (C) Micro environment

The micro environment includes factors that directly affect the day-to-day operations of an organization. This environment comprises elements that are in close proximity to the organization and have a significant and immediate impact on its operations, such as customers, suppliers, competitors, and other stakeholders. The competitive environment is a subset of the micro environment and focuses specifically on factors related to competition within the organization's industry.

14 Views

Question : Fill in the blanks with appropriate words.


Music has great qualities of healing a person emotionally and mentally. Music is a form of (1)____ While composing or listening to music, one tends to forget all his worries, sorrows, and pains. But, in order to (2)_____ good music, we need to cultivate our musical taste. It can be cited that in the Dwapar Yug, the Gopis would get. (3) ____with the music that flowed from Lord Krishna's flute. They would. (4)____  themselves to HIm. Also, the research has proved that the plants which listen to music grow at a faster rate in (5) ____ to the others.

Question:
Select the most appropriate option to fill in blank No. 1.

Option 1: Flair
 

Option 2: Imperial
 

Option 3: Momentous
 

Option 4: Meditation

Team Careers360 26th Jan, 2024

Correct Answer: Meditation


Solution : 'Meditation' is the correct answer.
Explanation:
- The passage refers to 'Music.'
- Let us consider the following passage:  "Music is a form of (1) While composing or listening to music, one tends to forget all his worries, sorrows, and pains".
- According to the preceding sentence, music calms a person by making that person forget about his or her worries, sadness, and pains.
- Option 4 defines meditation as the act of focusing your attention on only one thing, either as a religious practice or as a way to become calm and relaxed.
- As a result, 'Meditation' is the correct answer for blank No. 1.

Let us look at the definitions of some other words:
- Flair - a unique or instinctive talent or ability to do something well.
- Imperial - having to do with an empire.
- Momentous - of great importance or significance, especially in relation to future events.

9 Views

Question : Which is an example of overuse injury__________.

Option 1: Bursitis

Option 2: Tenosynovitis

Option 3: Stress fracture

Option 4: All of the above

Team Careers360 27th Jan, 2024

Correct Answer: All of the above


Solution : (D) All the above
Tennis elbow is a part of generalized problems found in many areas of the body basically through over use of degeneration the origin of a may tear. Because the muscle continues to be used that tear propagates and symptoms worson.

43 Views

Question : Case Study: XYZ Tech Solutions

XYZ Tech Solutions is a software development company known for its innovative products. The company is managed by three levels of management: top management, middle-level management, and lower-level management. XYZ Tech Solutions aims to be a market leader by providing cutting-edge technology solutions and excellent customer support.

The management function of controlling in XYZ Tech Solutions involves:

Option 1: Guiding and motivating employees to achieve organizational goals
 

Option 2: Setting performance standards and measuring actual performance
  

Option 3: Allocating resources and assigning tasks

 

Option 4: Monitoring and evaluating employee performance

Team Careers360 26th Jan, 2024

Correct Answer: Setting performance standards and measuring actual performance
  


Solution : The correct answer is (b) Setting performance standards and measuring actual performance

Controlling in management includes setting performance standards or benchmarks, measuring actual performance against these standards, and taking corrective actions as necessary to ensure that the organization's objectives are being met. It involves monitoring and regulating various activities and processes to maintain performance within established parameters. Controlling specifically focuses on performance measurement and adjustment to ensure the organization's goals are met.

11 Views

Question : The term _______________is used for writing off (fixed) intangible assets (such as goodwill, trademarks, copyrights, etc.) over their estimated useful Amortization life.

Option 1: Depreciation

Option 2: Amortisation

Option 3: Both A and B

Option 4: None of the above

Team Careers360 27th Jan, 2024

Correct Answer: Amortisation


Solution : Answer = Amortisation

The term 'Depreciation' is used for writing off (fixed) tangible assets over their estimated useful life and the term 'Amortisation' is used for writing off (fixed) intangible assets (such as goodwill, trademarks, copyrights, etc.) over their estimated useful life.
Hence, the correct option is 2.

111 Views

Question :

The Kerala Coir Mills Ltd., with an authorised capital of 5,00,000 Equity Shares of  Rs. 10 each, issued 2,00,000 Equity Shares, payable Rs. 3 on application, Rs. 2 on allotment, Rs. 3 on first call and Rs. 2 on second and final call.

The amount due on allotment was received. On the first call being made, one shareholder holding 6,000 Equity Shares paid second and final call along with the first call while five shareholders with a total holding of 10,000 Equity Shares did not pay the first call on their Equity Shares. The company has not demanded the second and final call.

Question:- The amount that the company credit to call in advance will be:

Option 1: Rs. 42,000

Option 2: Rs. 12,000

Option 3: Rs. 18,000

Option 4: None of the above

Team Careers360 26th Jan, 2024

Correct Answer: Rs. 12,000


Solution : Answer = Rs. 12,000 

Equity Shares First Call A/c ...Dr.

6,00,000

 

To Equity Share Capital A/c

(First call money due on 2,00,000 shares @  Rs. 3 per share)

 

6,00,000

Bank A/c ...Dr. Calls-in-Arrears A/c ...Dr.

5,82,000

30,000

 

To Equity Shares First Call A/c

To Calls-in-Advance A/c

 

6,00,000

12,000

(First call money received except on 10,000 shares @ Rs. 3 per share and final call of  Rs. 2 per share on 6,000 shares received in advance)

 

 

Hence, the correct option is 2.

19 Views

Question : Which of the following institutions provides credit for small and medium enterprises in India?

 

Option 1: Reserve Bank of India (RBI)
 

 

Option 2: National Bank for Agriculture and Rural Development (NABARD)
 

Option 3: Small Industries Development Bank of India (SIDBI)

 

Option 4: None of the above

Team Careers360 26th Jan, 2024

Correct Answer: Small Industries Development Bank of India (SIDBI)

 


Solution : c). Small Industries Development Bank of India (SIDBI)

The correct answer is c). Small Industries Development Bank of India (SIDBI). SIDBI is a specialized financial institution in India that focuses on providing credit and financial support to small and medium enterprises (SMEs). It offers various loan products, credit facilities, and developmental services to assist SMEs in their growth and development. SIDBI plays a crucial role in promoting entrepreneurship and supporting the MSME (Micro, Small, and Medium Enterprises) sector in India. The Reserve Bank of India (RBI) is the central bank of India, responsible for monetary policy and overall regulation of the banking system. The National Bank for Agriculture and Rural Development (NABARD) primarily provides credit and financial support for agriculture and rural development.

 

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