Signature and Name of Invigilator

Answer Sheet No. : ................................................

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1. (Signature)

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(Name)

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Test Booklet No.

D0 8 0 5

PAPERII

COMMERCE

Time : 1 hours]

Number of Pages in this Booklet : 16

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1.

Write your roll number in the space provided on the top of this
page.

1. U DU U S U UU U

2.

This paper consists of fifty multiple-choice type of questions.

3. U U U, -S U U U

3.

At the commencement of examination, the question booklet

will be given to you. In the first 5 minutes, you are requested
to open the booklet and compulsorily examine it as below :
(i)

4.

2. -

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To have access to the Question Booklet, tear off the paper

seal on the edge of this cover page. Do not accept a
booklet without sticker-seal and do not accept an open
booklet.

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U U SUU-U S
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(ii)

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DU / U UU
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UUU S U U -S
U U
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UQ

(ii)

Tally the number of pages and number of questions in

the booklet with the information printed on the cover
page. Faulty booklets due to pages/questions missing
or duplicate or not in serial order or any other
discrepancy should be got replaced immediately by a
correct booklet from the invigilator within the period of
5 minutes. Afterwards, neither the question booklet
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(iii)

After this verification is over, the Serial No. of the booklet

should be entered in the Answer-sheets and the Serial
No. of Answer Sheet should be entered on this Booklet.

(iii) -S R U- U

Each item has four alternative responses marked (A), (B), (C)
and (D). You have to darken the oval as indicated below on the
correct response against each item.

4. U U (A), (B), (C) (D)

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Your responses to the items are to be indicated in the Answer

Sheet given inside the Paper I booklet only. If you mark at
any place other than in the ovals in the Answer Sheet, it will
not be evaluated.

6.

Read instructions given inside carefully.

7.

Rough Work is to be done in the end of this booklet.

8.

If you write your name or put any mark on any part of the test
booklet, except for the space allotted for the relevant entries,
which may disclose your identity, you will render yourself
liable to disqualification.

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6. U U
7. (Rough Work) S DU U U
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You have to return the test question booklet to the invigilators

at the end of the examination compulsorily and must not carry
it with you outside the Examination Hall.

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10.

10. Use only Blue/Black Ball point pen.

11.

11. Use of any calculator or log table etc., is prohibited.

12. There is NO negative marking.

D0805

(C) U

where (C) is the correct response.

5.

9.

(i)

P.T.O.

COMMERCE
PAPERII
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)

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

D0805

Consumers


II
U

(50)

SD

(2)

1.

__________ S c S
-

(A)
2.

3.

5.

(B)

(C)

(D)

..

(D)

(A)

(B)

(C)

(D)

m h

__________ g h
(A)

4.

(GATT)

(B)

(C)

(A)

- ()

(B)

- ()

(C)

- , 2005-06

(D)

(A)

l S S

(B)

, , , -

6.

(C)

(D)

(A)
7.

(B)

(C)

(D)

(A)

(B)

(C)

-S

(D)

D0805

P.T.O.

8.

9.

10.

What do you mean by cash equivalents ?

(A)

Bank balance

(B)

Short -term highly liquid securities

(C)

Investments

(D)

Investment in debentures

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

Match the items from List-I with the items in List-II :

List - I

11.

12.

(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)

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

When marginal utility is negative then total utility ?

(A)

13.

List - II

increases

(B)

decreases

(C)

is zero

(D)

is negative

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

D0805

8.

9.

(A)

(B)

, M

(C)

(D)

m m

10.

(A)

(B)

(C)

(D)

I II

II

(a)

(i)

L 1000

(b)

(ii)

(c)

(iii)

L. 563 L. 653 M

(d)

(iv)

- L. 1000
L 1000

(v)

L. 1000
L. 1000

(A)
(B)
(C)
(D)
11.

12.

(b)
(iii)
(iii)
(ii)
(iii)

(c)
(i)
(iv)
(i)
(i)

(d)
(iv)
(v)
(iii)
(v)

(A)

(B)

(C)

(D)

(A)
13.

(a)
(ii)
(ii)
(iv)
(ii)

(B)

(C)

(D)

(A)

(B)

(C)

(D)

D0805

P.T.O.

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, 18 will be :

(A) 12
(B) 16

(C)

15

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
(C) ratio between two correlations

(B)
(D)

Match the items from List-I with the items in

List - I
(a) t-test
(i)
(b) Regression test
(ii)
(c) Published sources
(iii)
(d) Probability sampling
(iv)
(v)
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
6

14

ratio between two standard deviations

ratio between two variances

20.

D0805

(D)

List-II.
List - II
secondary data
systematic sampling
hypothesis test
quota sampling
multi-variable analysis

14.

S S
__________

(A)
15.

18.

20.

(B)

(C)

(B)

(C)

10, 12, 14, 16, 18

(A) 12
(B) 16

(D)

(D)

(C)

15

(D)

14

(A)
19.

(D)

(A)
17.

(C)

0 - X S __________

(A)
16.

(B)

(B)

(C)

(D)

(A)

(B)

(C)

(D)

-I -II

II

(a)

-S

(i)

(b)

(ii)

(c)

(iii)

(d)

(iv)

(v)

(A)
(B)
(C)
(D)
21.

(a)
(v)
(v)
(iii)
(v)

(b)
(ii)
(iii)
(v)
(ii)

(c)
(i)
(i)
(i)
(i)

(d)
(iv)
(iv)
(ii)
(iv)

S __________

(A)
D0805

(B)

(C)
7

(D)

P.T.O.

22.

The
(A)
(B)
(C)
(D)

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

D0805

chief contribution of Henry Fayol to management is that he :

provided a conceptual frame-work
formulated the management process approach
evolved two principles of management
stressed the need for management education based on management

22.

23.

24.

25.

26.

27.

(A)

(B)

(C)

(D)

M ?

(A)

(B)

(C)

(D)

(A)

(B)

(C)

(D)

(A)

(B)

(C)

(D)

C __________

(A)

(B)

(C)

III D

(D)

S M __________

(A)
28.

(B)

(C)

(D)

(A)

Z S - Q

(B)

Z m S

29.

(C)

Q -

(D)

Q C - C - M

(A)

(B)

S-/S-

(C)

(D)

D0805

P.T.O.

30.

31.

32.

33.

34.

What is the basis for segmenting vitamin market ?

(A)

Age

(B)

Place of distribution

(C)

Formulation

(D)

All of the above

Financial Risk means :

(A)

Risk of Technical insolvency

(B)

Magnify the fluctuation in EBT

(C)

Both (A) and (B)

(D)

None of the above

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

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

If the sales are Rs. 6000, variable cost Rs. 3600 and fixed cost Rs. 2000, the Break-even
point will be :
(A)

35.

36.

37.

5000 units

(B)

5400 units

(C)

6000 units

(D)

4000 units

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

Job analysis provides information used for writing :

(A)

Organisation chart

(B)

Policy

(C)

Job Description

(D)

Procedure

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

D0805

10

30.

(A)
31.

32.

33.

34.

(B)

(C)

(D)

(A)

(B)

... -

(C)

(A) (B)

(D)

_________

(A)

(B)

(C)

(D)

.. C _________ C

(A)

h C

(B)

h C

(C)

(A) (B)

(D)

6000 L 3600 L S 2000 L

(A)
35.

36.

(B)

5400

(C)

6000

(D)

4000

Q ?

(A)

(B)

1 M

(C)

1:1

(D)

_________

(A)
37.

5000

(B)

(C)

(D)

__________

(A)

(B)

(C)

(D)

D0805

11

P.T.O.

38.

39.

40.

41.

__________ is the process of deciding how to fill th companys most important executive
positions.
(A)

Succession Planning

(B)

Organisational Restructuring

(C)

Self-directed Teams

(D)

Corporate Downsizing

Which of the following is not necessary for promotion from within ?

(A)

Job posting

(B)

Advertisements

(C)

Personnel Records

(D)

Performance Appraisal Form

Performance appraisal means evaluating an employees performance relative to :

(A)

Established goods

(B)

Fellow employees

(C)

Job description requirements

(D)

Performance standards

A __________ card is basically a payment mechanism which allows the holder of the
card to make purchases without any immediate cash payment.
(A)

42.

43.

44.

ATM

(B)

CREDIT

(C)

DEBIT

(D)

KISAN CREDIT

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

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

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 licence

from the RBI to do banking business.

(D)

The RBI is a banker to both central and state governments

D0805

12

38.

39.

40.

41.

(A)

(B)

(C)

(D)

(A)

(B)

(C)

(D)

c-

, __________

(A)

(B)

(C)

(D)

__________

(A)
42.

43.

...

(B)

(C)

(D)

(A)

(B)

(C)

(D)

(A)

C g

(B)

(C)

(D)

44.

(A)

... m

(B)

... m

(C)

S m

...

(D)
D0805

... ,

13

P.T.O.

45.

46.

47.

48.

49.

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

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

The trade theory of comparative advantage was developed by :

(A)

Haberler

(B)

Adam Smith

(C)

Alfred Marshall

(D)

David Ricardo

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

If a country has deficit in balance of current account, balance of capital account will be :
(A)

50.

Zero

(B)

Surplus

(C)

Deficit

(D)

None of the above

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

-oOo-

D0805

14

45.

46.

47.

(A)

m 1975 S

(B)

1991

(C)

1997

(D)

(A)

S-

(B)

S-

(C)

(D)

h __________ m

(A)
48.

49.

(B)

(C)

(D)

(1)

(2)

(3)

(4)

(A)

1, 3 4

(B)

2, 3 4

(C)

1, 2, 3 4

(D)

1, 2 3

(A)
50.

(B)

(C)

(D)

- __________

(A)

(B)

(C)

(D)

-oOo-

D0805

15

P.T.O.

Space For Rough Work

D0805

16