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Common University Entrance Test (UG)

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Question : Case Study 33

XYZ Corporation is a well-established company with shares traded on a stock exchange. The company's management is reviewing the functions of a stock exchange.

Question : 

What is the secondary function of a stock exchange that ensures a continuous market for securities?

Option 1: Allocation of resources
 

Option 2: Regulation of insider trading
 

Option 3: Providing loans to companies

 

Option 4: Providing credit rating to companies

Team Careers360 26th Jan, 2024

Correct Answer: Allocation of resources
 


Solution : The correct answer is (a) Allocation of resources

The secondary function of a stock exchange that ensures a continuous market for securities is allocation of resources. A stock exchange provides a platform where investors can efficiently allocate their capital by buying or selling securities based on their assessment of the companies listed. This allocation of resources helps ensure a continuous and active market for securities.

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Question : Assertion: Barriers in communication always lead to optimisation.

Reason: Effective communication strategies can sometimes overcome barriers and ensure clarity.

Option 1: Both Assertion and Reason are true, and Reason is the correct explanation of Assertion.
 

Option 2: Both Assertion and Reason are true, and Reason is not the correct explanation of Assertion.


 

Option 3: Assertion is true, but Reason is false.

 

 

Option 4: Assertion is false, but Reason is true.

Team Careers360 27th Jan, 2024

Correct Answer: Assertion is false, but Reason is true.


Solution : The correct answer is (d) Assertion is false, but Reason is true.

The Assertion is false. Barriers in communication create obstacles and can hinder effective communication, not optimize it. Overcoming these barriers is essential to improve communication and achieve optimization.

The Reason is true. Effective communication strategies are designed to overcome barriers and enhance clarity in communication, but this doesn't mean that barriers always lead to optimization. The Reason does not explain the incorrect statement made in the Assertion.

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Question : The analysis of Hampi's temples by historians helps in understanding:

Option 1: The economic system of the Vijayanagar Empire

Option 2: The religious practices of the time

Option 3: The social structure of the Vijayanagar society

Option 4: The architectural techniques of the period

Team Careers360 27th Jan, 2024

Correct Answer: The architectural techniques of the period


Solution : Correct Option: 4
Explanation: The analysis of Hampi's temples by historians helps in understanding the architectural techniques of the period, including construction methods, design styles, and artistic expressions.

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Question : Capital reserve is ............

Option 1: Not available for Distribution

Option 2: Available for Distribution

Option 3: Available for Dividend Distribution

Option 4: None of the Above

Team Careers360 26th Jan, 2024

Correct Answer: Not available for Distribution


Solution : Capital reserve refers to a type of reserve that is created out of the profits or surplus funds of a company, typically stemming from non-operational activities. Capital reserve is not available for dividend distribution.

Hence the correct answer is option 1.

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Question : Very high fertility rate is a feature pertaining to the economies of
 

Option 1: India
 

Option 2: China
 

Option 3: Pakistan
 

Option 4: Pakistan and India
 

Team Careers360 26th Jan, 2024

Correct Answer: Pakistan
 


Solution : Very high fertility rate is a feature pertaining to the economies of Pakistan.
Hence option C is correct.

Question : Statement 1: The PPC illustrates the concept of opportunity cost.

Statement 2: As an economy produces more of one good, the opportunity cost of producing those goods decreases.

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

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

Option 3: Both statements 1 and 2 are true.

Option 4: Both statements 1 and 2 are false.

Team Careers360 27th Jan, 2024

Correct Answer: Statement 1 is true, and statement 2 is false.


Solution : The correct answer is (a). Statement 1 is true, and statement 2 is false.

The PPC illustrates the concept of opportunity cost because it shows the tradeoff between producing two goods. For example, if an economy produces more cars, it will have to produce fewer computers. This is because the resources that are used to produce cars cannot also be used to produce computers.

Statement 2 is false because the opportunity cost of producing a good increases as more of that good is produced. This is because the economy has to give up more and more of other goods in order to produce more of the first good.

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Question : Choose the answer option that identifies the underlined word or words in the sentence.

John is finishing his task early so he can enjoy the rest of the day.
 

Option 1: conjunction
 

Option 2: interjection
 

Option 3: pronoun
 

Option 4: verb

Team Careers360 26th Jan, 2024

Correct Answer: conjunction
 


Solution : The correct answer is option 1.

Explanation:

Conjunctions are a type of word that join together two different clauses, phrases, or other parts of a sentence. Conjunctions include and, or, for, yet, although, because, not only, and so on.

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