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a. 81.48 b. 81.84 c. 84.18 d. 84.81

Ans - c

Solution

FV=PV(1+r)*(1+r)

=100*1.08*1.10

=100*1.188 =118.80

PV = FV/(1+r)*(1+r)

= 100/1.08*1.10

= 100/1.188

= 84.178

2. Ups and downs in the economy due to trade cycles are called ......

a. cyclical variations b. seasonal variations

c. secular tends d. none of the above

Ans - a

3. Which one of the following is the indication of seasonal variation ......

a. improvement in techniques

b. demand of woolen clothes in winter

c. purchase of books during the beginning of the academic sessions

d. none of the above

Ans - b

4. Bond holders are of the business (Bond issuer) ......

a. Creditors b. Share holders c. Partners d. Owners

Ans - a

5. Y = ? in series ......

a. TxS+C+1 b. T-S+C-1 c. T-SxCx1 d. TxSxCx1

Ans – d

a. The bond will be trading at par

b. Bond will trade at a discount

c. Bond will trade at a premium

d. Coupon rate & discount rates have no connection with each other

Ans - a

7. X wants to send his daughter to a management school after 5 years and will need onetime payment of charges amounting to Rs. 7 lac. At 12% roi, how much he should invest annually?

a. 111087 b. 110187 c. 118107 d. 118017

Ans - b

T = 5 yrs

FV = P / R * [(1+R)^T - 1] 700000

= P * (1.125 – 1) ÷ 0.12 700000

= P * 6.352847

8. Present Value is defined as:

a. Future cash flows discounted to the present at an appropriate discount rate

b. Inverse of future cash flows

c. Present cash flow compounded into the future

d. None of the above

Ans - a

9. If the present value of the cash flow X is Rs.200, and the present value cash of the flow Y is Rs.150, than the present value of the combined cash flow is:

a. 200 b. 150 c. 50 d. 350

Ans - d

10. If the present value ofRs.444 to be paid at the end of one year is Rs. 400, what is the one year discount factor?

a. 0.909 b. 1.11 c. 0.11 d. None of the above

Ans - a =c1/(r-g)= 400/44

11. If you invest Rs.100,000 today at 12% interest rate for one year, what is the amount you will have at the end of the year?

a. Rs.90,909 b. Rs.112,000

c. Rs.100,000 d. None of the above

Ans - b

12. If there is a indirect relationship between rainfall & yield of crops, then...

a. yield is higher if rainfall is less

b. yield is lower if rainfall is less

c. yield is higher if rainfall is higher

d. none of the above

Ans - a

13. A time series Is a set of observations taken at specified time, usually at ......

a. equal Intervals b. unequal intervals

c. only at short-term intervals d. none Of the above

Ans - a

14. What is sampling for groups with considerable variation within but similar to each other called ?

a. cluster b. stratified c. systematic d. random

Ans – a

15. You are receiving Rs. 10000 every year for the next 5 years (at the beginning of the period) and you invest each payment @ 5%. How much you would have at the end of the 5-year period?

a. 58109 b. 58019 c. 58091 d. 58190

Ans - b

P = 10000 R = 5% p.a. T = 5 yrs

If invested at the beginning,

FV = P / R * [(1+R)^T - 1] * (1+R)

FV = 55256 × 1.05

16. The repetitive movement around a trend line in a 4- month period is best described by

a. seasonal variation b. secular trend

c. cyclical fluctuation d. irregular variation

Ans - a

17. Removing the highest & lowest actual-to-moving average values when computing seasonal index for annual data reduces

a. extreme cyclical variations b. secular trend

c. seasonal variations d. all of these

Ans – a

18. The result of discarding extreme values before averaging is called ......

a. residual mean b. modified mean

c. extreme mean d. none of the above

Ans - b

19. An annuity consists of monthly repayments of Rs. 600 made over 20 years and if rate is 14% monthly. What is the future value of the annuity?

a. 781046 b. 718146 c. 781146 d. 716814

Ans - c

Here

T = 20 × 12 = 240

20. In a study it was noticed that average height of sons of tall fathers is less than that of the fathers and vice versa . This is due to ......

a. extension b. progression c. regression d. hypertension

Ans - c

a. Gantt Chart b. PERT c. CASE Tools d. None of these

Ans - a

22. An annuity consists of monthly repayments of Rs. 600 made over 20 years and if rate is 14% monthly. What is the present value of the annuity?

a. 48872 b. 42878 c. 48728 d. 48278

Ans - d

Here R = 14% / 12 = 0.01166

T = 20 × 12 = 240

PV = FV ÷ (1+r)t

23. In project management, which of the following show precedence relationship among the tasks and milestones of the project?

(i) Gantt Chart, (ii) PERT, (iii) CASE Tools

a. Only (i) and (ii) b. Only (i) and (iii)

c. Only (ii) and (iii) d. (i), (ii) and (iii)

Ans – c

24. A person borrowed Rs. 10000 from the bank @ 12% p.a. for 1 year, payable on EMI basis.

What is the amount of EMI?

a. 889 b. 898 c. 989 d. 998

Ans - a

Here,

P = 10000

R = 12% yearly = 0.01% monthly T = 1 Y = 12 months

EMI = P * R * [(1+R)^T/(1+R)^T-1)]

So, EMI = 10000*0.01*(1+0.01)^12 ÷ {(1+0.01)^12 – 1}

25. The fluctuations which complete the whole sequence of change within the span of a year or has some pattern year after year is known as ......

a. secular trend b. seasonal variation

c. cyclical fluctuation d. none of the above

Ans - b

26. Cyclical fluctuations are also known as ......

a. oscillatory variations b. business cycle fluctuations

c. either a or b d. none of the above

Ans - c

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