NTA UGC NET/JRF Exam, Dec. 2020/June 2021 Commerce (Morning-Shift)

Total Questions: 100

91. India has significant trading partners from which of the following regions :

In 2019, India's ten largest trading partners were USA, China, UAE, Saudi Arabia, Hong Kong, Iraq. Singapore, Germany, South Korea and Switzerland. In 2018 -19, the Foreign Direct Investment (FDI) in India was $64.4 billion with service sector, computer and telecom industry remains leading sectors for FDI inflows.

India has free trade agreements with several nations, including ASEAN, SAFTA, Mercosur, South Korea, Japan and few other which are in effect or under negotiating stage. The service sector makes up 55.6% of GDP and remains the fastest growing sector, while the industrial sector and the agricultural sector employs a majority of the labor force.

The Bombay Stock Exchange and National Stock Exchange are one of the World's largest stock exchanges by market capitalization. India is the world's sixt-largest manufacturer, representing 3% of global manufacturing output and employs over 57 million people.

Nearly 66% of India's population is rural whose primary source of livelihood is agriculture and contributes less than 50% of India's GDP. It has the world's fifth-largest foreign-exchange reserves worth Rs. 38,832.21 billion (US $540 billion).

India has a high national debt with 68% of GDP, while its fiscal deficit remained at 3.4% of GDP. However, as per 2019 CAG report, the actual fiscal deficit is 5.85% of GDP. India's government-owned banks faced mounting bad debt, resulting in low credit growth; simultaneously the NBFC sector has been engulfed in a liquidity crisis.

India faces high unemployment, rising income inequality and major slump in aggregate demand. On the basis of the above passage, given answers to question.

(a) Europе
(b) America
(c) Asia
(d) Africа
Choose the correct answer from the options given below:

Correct Answer: (a) (a), (b), (c) only
Solution:

India has significant trading partners from the following regions like Europe (Germany, switzerl and), America (USA), Asia, (China, UAE, Saudi Arabia, Hongkong, Irag, Singapur, South Korea etc.) according to the passage.

92. Which of the following sectors have significant Foreign Direct Investment (FDI) in India?

(a) Service Sector
(b) Secondary Sector
(c) Primary Sector
(d) Fisheries and Animal Husbandry
Choose the correct answer from the options given below:

Correct Answer: (a) (a) and (b) only
Solution:

According to passage, In 2018-19 the FDI in India was $64.4 bullion with service sector, computer and telecom industry the secondary, sector with highest among all sectors.

93. Which among the following statements is the correct one? (Choose the most appropriate one)?

Correct Answer: (c) Indian primary sector is contributing less as compared to other sectors
Solution:

Indian primary sector is contributing less as compared to other sectors as 66% of population of India is working in agriculture sector (Primary sector) and it contributes less than 50% of India's GDP.

94. The comptroller and Auditor General has reported a different estimate than of governments, in terms of :

Correct Answer: (b) Fiscal Deficit
Solution:

The comptroller and Aditor general has reported a different estimates than of governments in terms of fiscal deficit. According to passage - As per 2019 CAG report, the actual fiscal deficit is 5.85% of GDP.

95. Which of the following has not been articulated in the passage?

(i) GDP Growth
(ii) Currency flows
(iii) Liquidity
(iv) Demographics
Choose the correct answer from the options given below:

Correct Answer: (c) (b) only
Solution:

Currency flows
In this passage, currency flows has not been articulated.

96. Read the following passage carefully and answer the question

XYZ Ltd. furnished you with the following information:

Budgeted oyerhead rate is Rs 1 ner unit In a particular month the actual hours worked were 31,500
What is the total overhead variance in the given month experienced by the XYZ Ltd?

Correct Answer: (d) Rs. 2,000 (Favourable)
Solution:

2000 (Favourable)
Total overhead variance = Overhead absorbed for actual
production - Actual overhead incurred.

97. Read the following passage carefully and answer the questions

XYZ Ltd. furnished you with following information :

Budgeted overhead rate is Rs. 1per unit. In a particular month the actual hours worked were 31.500
What is the expenditure variance of XYZ Ltd as on given month?

Correct Answer: (a) Rs. 1,000 (Adverse)
Solution:

Expenditure overhead variance Budgeted overheads - Actual overheads
⇒ 30000-31000
₹1000 (Adverse)

98. Read the following passage carefully and answer the questions

XYZ Ltd. furnished you with the following information :

Budgeted overhead rate is Rs. 1 per unit. In a particular month the actual hours worked were 31,500
From given information in the passage, what is the volume variance of XYZ ltd is given month?

Correct Answer: (a) Rs. 3,000 (Favourable)
Solution:

Volume variance ⇒ Absorbed overhead - Budgeted overheads

99. Read the following passage carefully and answer the question :

XYZ Ltd, furnished you with the following information :

Budgeted overhead rate is Rs. 1 per unit. In a particular month the actual hours worked were 31,500
Find the capacity variance for the month from the information given in the passage.

Correct Answer: (c) Rs. 1,500 (Favourable)
Solution:

Capacity variance = SR (Actual hours – budgeted hours)
= 1 (31,500 - 33,000)
= ₹1500 (Favourable)

100. Read the following passage carefully and answer the question :

XYZ Ltd. furnished you with the following information:

Budgeted overhead rate is Rs.1 per unit. In a particular month the actual hours worked were 31,500
Given the information in the passage, what is the calendar variance for the month?

Correct Answer: (c) Rs. 2,4000 (Favourable)
Solution:

Calendar variance ⇒ Std. fixed overhead rate/day
(Actual working days) - Budgeted working days)