NTA UGC NET/JRF Exam, September 2024 (Commerce)

Total Questions: 12

1. Which of the following is the apex decisionmaking body of WTО?

Correct Answer: C. Ministerial Conference
Solution:The Ministerial Conference is the apex decision-making body of the World Trade Organization (WTO). It comprises representatives from all member countries and typically meets at least once every two years. The Ministerial Conference has the authority to make decisions on all matters under any of the multilateral trade agreements. This includes functions such as interpreting the trade rules and agreements to ensure smooth operation and progression of trade across global markets. For example, in past meetings, the Ministerial Conference has been responsible for major decisions that led to the launch of new trade negotiation rounds and the approval of accession for new members, thereby shaping the international trade landscape significantly.

2. The authentication to be affected by use of asymmetric crypto system and hash function is known as:

Correct Answer: C. Digital signature
Solution:Digital signatures use asymmetric cryptography and hash functions to authenticate the identity of the sender of a message or the signer of a document, ensuring that the original content of the message or document has been sent without tampering. Asymmetric cryptography involves a pair of keys, a public key, and a private key. The private key, which is kept secret, is used to create a digital signature, and the corresponding public key is used to verify it. The hash function creates a unique digital fingerprint of the data; if the document changes after signing, the digital signature will fail to verify, thereby ensuring data integrity.

3. Revenue from sale of products, ordinarily is reported as part of the earning in the period when:

Correct Answer: A. The sale is made
Solution:Revenue from the sale of products is typically recognized at the point of sale, which is when the ownership and risks of the goods have transferred to the buyer, and the seller has fulfilled their part of the deal by making the goods available to the purchaser. This principle aligns with the accrual basis of accounting, which recognizes income when earned and expenses when incurred, regardless of when the cash transactions occur. This approach provides a more accurate picture of the company's financial health and performance during a particular accounting period, as it matches revenues with the expenses related to those revenues.

4. Arrange the following new product planning process in proper sequence.

(a) Idea screening
(b) Idea generation
(c) Concept Development and testing
(d) Market strategy development
(e) Business Analysis
Choose the correct answer from the options given below:

Correct Answer: B. (b), (a), (c), (d), (e)
Solution:The correct sequence for a new product planning process typically starts with Idea Generation (b), where potential product ideas are developed. This is followed by Idea Screening (a), where ideas are evaluated to determine if they are feasible and align with company goals. Next is Concept Development and Testing (c), which involves creating product concepts, defining marketing and engineering details, and testing the concepts to refine them further. Market Strategy Development (d) comes afterward, focusing on developing marketing strategies and sales approaches. Finally, Business Analysis (e) assesses the market attractiveness, competition, potential sales, and profitability of the new product.

5. Which of the following are the participants in T-Bills Market?

(a) Reserve Bank of India
(b) Commercial Banks
(c) Foreign Banks
(d) Provident Funds
(e) Corporates
Choose the correct answer from the options given below:

Correct Answer: D. (a), (b), (c), (d) & (e)
Solution:Participants in the T-Bills Market include the Reserve Bank of India (а), which plays a crucial role in issuing and managing Treasury Bills as part of government debt management. Commercial Banks (b) and Foreign Banks (c) participate as investors seeking low-risk short-term investment opportunities. Provident Funds (d) and Corporates (e) also invest in T-Bills to manage their short-term liquidity needs effectively. T-Bills are considered safe investments with maturities typically ranging from a few days to a year, offering participants a secure place to park funds temporarily.

6. Compute the tax liability under default tax regime of Mr. X (35 year), having total income of 51,75,000 for the assessment year 2024-25. Assume that his total income comprises salary, income from house property and interest on fixed deposit:

Correct Answer: C. 14,30,000
Solution:To compute the tax liability of Mr. X, a 35-year-old individual with a total income of₹ 51,75,000 for the assessment year 2024-25 under the default tax regime, we need to apply the prevailing income tax slabs. Assuming Mr. X falls under the general category (not senior citizen), the tax rates for assessment year 2024-25 for income exceeding 50,00,000 are typically around 30%, plus applicable surcharge and cess. Therefore, the primary tax calculation on50,00,000 would be approximately *12,50,000 (excluding initial tax-free slabs and considering different slabs leading up to 30%). For the remaining ₹ 1,75,000, a 30% rate yields 52,500. Adding surcharge (typically around 10% on the tax for incomes exceeding50 lakh) and a 4% health and education cess results in an estimated tax liability around 14,30,000.

7. Match the List-I with List-II.

List-I (Section)List-II (Ceiling limit)
(a) 80-CI. 50,000
(b) 80-CCD (1)II. 10% of salary or 20% of gross total income as per case
(c) 80-CCD (1B)III. 14% of salary
(d) 80-CCD (2)IV. 1,50,000

Choose the correct answer from the options given below:

Correct Answer: B.
Solution:Matching the sections of the Income Tax Act with their ceiling limits, we find that Section 80-C, which pertains to deductions on investments like PF contributions, life insurance premiums, etc., has a ceiling limit of1,50,000, hence matched with IV. Section 80-CCD(1) refers to deductions for contributions to pension accounts, limited by 10% of salary (or 20% if self-employed), thus II is correct. Section 80-CCD(1B) provides an additional deduction of 50,000 over and above the ceiling limit under Section 80-CCD(1), making I correct. Section 80-CCD(2) pertains to the employer's contribution to an employee's pension account, which can go up to 14% of salary for government employees, corresponding to III.

8. What is the time limit within which an information is to be provided regarding the life and liberty of a person under RTI Act, 2005?

Correct Answer: D. 48 hours
Solution:The Right to Information Act, 2005 stipulates a specific provision for cases concerning the life and liberty of a person. Under this provision, the information must be provided within 48 hours from the time of the request. This accelerated timeline ensures urgent access to information that could impact a person's immediate safety or freedom, reflecting the critical nature of such requests.

9. Match the List-I with List-II.

List-IList-II
(a) Right to SafetyI. Consumers have a right against the marketing of goods, products or services which are hazardous to life & property.
(b) Right to be assuredII. Consumers have a right to know about the quality, quantity, potency, purity, standard and price of goods or services.
(c) Right to be informedIII. Consumers have a right to be assured that their interest will receive due consideration at appropriate commission
(d) Right to be heardIV. Consumer has the opportunity to choose from a wide range of products at reasonable rates

Choose the correct answer from the options given below:

Correct Answer: A.
Solution:The correct matches for the rights under consumer protection are as follows: The Right to Safety, denoted by (a), means that consumers have a right against the marketing of goods and services which are hazardous to life and property, matched with I. The Right to be Assured (b), corresponds to the ability to choose from a range of products at reasonable prices, making IV correct. The Right to be Informed (c) is about consumers' right to know details like quality, quantity, potency, etc., matching with II. Lastly, the Right to be Heard (d) ensures that consumers' interests receive due consideration at appropriate forums, corresponding to III.

10. Which of the following are the benefits of globalisation?

(a) Increase in competition would make companies more cost & quality conscious and innovative.
(b) An open economy spurs innovation with fresh ideas from abroad.
(c) Liberalisation & global competition enhances consumer choice and consumer surplus.
(d) Developing countries could be very vulnerable to the harmful effects of globalisation.
(e) Globalisation opens up enormous domestic and global opportunities for firms in developing countries.
Choose the correct answer from the options given below:

Correct Answer: D. (a), (b), (c) & (e) only
Solution:The benefits of globalization include several economic and social impacts. Increased competition (a) often drives companies to focus on cost reduction, quality improvement, and innovation to stand out in a global marketplace. An open economy (b) facilitates the influx of fresh ideas and technologies, which can spur domestic innovation. Liberalization and global competition (c) expand consumer choices and lead to better pricing, which can increase consumer surplus. Finally, globalization (e) opens up new markets and platforms for domestic companies, especially in developing countries, allowing them to scale up and participate more actively in international trade.
Note, however, that while (d) highlights a potential downside of globalization, it is not a benefit and is thus excluded from the correct options.