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

Total Questions: 100

21. A price ceiling below the equilibrium price often leads to a shortage of the commodity and possibly

Correct Answer: (a) Black marketing
Solution:
  • A price ceiling below the equilibrium price often leads to a shortage of commodity and black marketing.
    Key points:
  • When a price ceiling is set below the equilibrium price, quality demanded will exceed quantity supplied, and excess demond or shortage will result.
  • The shortage of the commodity and black marketing economy drives out tegitimate industries that can't compete with the lower costs of illigal operations. Someb black market players dediberately create shortages in legal goods to force people to purchase from them.

22. Match List-I with List-II

List-IList-II
A. DispersionI. Involving relationship between the median and quartile
B. Karl Pearson's measures of skewnessII. Based on the relationship between the averages
C. Bowley's measures of skewnessIII. Using percentile
D. Kelly's measure of skewnessIV. Amount of variation in given data

Choose the correct answer from the options given below

ABCD
(a)IIIIIIIV
(b)IVIIIIII
(c)IVIIIIII
(d)IVIIIIII
Correct Answer: (c)
Solution:Match the List-I & List-II
List-IList-II
A.DispersionAmount of variation in given data
B.Karl pearson's measures of skewnessbased on the relationship between the averages
C.Bowley's measures of skewnessInvolving relationship between tye median and quastile
D.Kelly's measure of skewnessUsing percentile

Note: This topic is extensively discussed by sigmund freud in his psychoanalytic theories.

23. Arrange the following economic regions in increasing order of FDI inflows, as per the UNCTAD Report, 2020?

A. Developing economies

B. Transition economies

C. North America
D. Developed economies
E. Europe
Choose the correct answer from the options given below :

Correct Answer: (d) E, B, D, C, A
Solution:

Following are the economic regions in increasing order of FDI inflows, as per the UNCTAD report, 2020 :
• Europe
• Transition economies
• Developed economies
• North America
• Developing economies

24. Which one of the following generations is more pragmatic and individualistic?

Correct Answer: (c) Gen Y 
Solution:

Gen X is more pragmatic and individualistic.
Key Points :
• Generation X (born between 1965 and 1980) currently has 51 million members.
• Most members of generation X are the children of the silent generation and early boomers.
• Gen Xers are autonomous & individualistic. They learned to live and rely on themselves after being left alone for long periods of time due to single parenting or being latch key kids where both parents work. Hence, they are efficient alone and are comfortable working alone.
• Pragmatists focus on how to get things done as Gen Xers, as children, received little or no supervision from their parents, they developed skills to get things done individually.

25. The functions of lower management are:

A. Executing plans in accordance with the policies and directives of the top management
B. Maintaining discipline among the workers
C. Selecting suitable operative and supervisory personnel
D. Providing training to the workers
E. Maintaining good human relations
Choose the correct answer from the options given below :

Correct Answer: (c) B, D and E only
Solution:

The function of lower management are :
• Maintaining discipline among the workers.
• Providing training to the workers
• Maintaining good human relations
Lower management or operating management is the lowest level of management. The managers at this level are direct contact with the operative employees. They are more concerned with day to day direction and control function as compared to planning and organizing functions of the management. They directly guide and control performance of the workers.

26. Which one of the following is NOT true regarding input tax credit to avoid cascading effect?

Correct Answer: (b) Input Tax credit of SGST/UTGST can be utilised for payment of CGST
Solution:

Input Tax Credit of SGST/UTGST can be utilized for payment of CGST is not true regarding input tax credit to avoid cascading effect.
Note: Cross-Utilization of ITC IGST Credit can be use for payment of all taxes. CGST credit can be used only for paying CGST or IGST, SGST Credit can be used only for paying SGST, ITC of CGST cannot be used for payment of SGST/UTGST and vice versa

Credit ofTo be utilized first for payment ofMay be utilized further for payment of
CGSTCGSTIGST
SGST/UTGSTSGST/UTGSTIGST
IGSTIGSTCGST, then SGST/UTGST

27. Match List-I with List-II

List-IList-II
Hedging ConceptsDescription
A. European optionI. Option contract exercised on any date up to maturity
B. Option premiumII. When the immediate exercise of an option yields positive value to its holder
C. In-money optionIII. Option contract exercised only on the maturity date
D. American optionIV. It is paid by the buyer of the options upfront to the option seller

Choose the correct answer from the options given below

Correct Answer: (d)
Solution:

Match the List-I & List-II

List-I (Hedging Concepts)List-II (Description)
A. European optionoption contract exercised only on the maturity date
B. Option premiumIt is paid by the buyer of the options up front to the option seller
C. In-money optionWhen the immediate exercise of an option yields positive value to its holder
D. American optionOption contract exercised on any date up to maturity

28. extract the text from the image without any changing same to same way

Correct Answer: (a) Lagging
Solution:

The practice of delaying receipts from the foreign currency designated receivables whose currencies are likely to appreciate and delaying foreign currency designated payables whose currencies are likely to depreciate is known as lagging.
Note : Leads and lags refer to the timing of payments on international agreements to take advantage of exchange rate changes. The premature payment is called a 'lead', while the delayed payment is called a 'lag'.

29. Companies strive to stockpile internally generated cash. Such a cash reserve is called

Correct Answer: (b) Financial slack
Solution:

Companies strive to stockpile internally generated cash. Such a cash reserve is called Financial slack.
• Financial slack is the untapped debt potential of a company. It may be availed from unused debt capacity, unutilized lines of credit, excess liquid assets, and various other sources of cash.
• Simply it is a cash reserve that a company used when there is downturn in sales, revenue or profit.

30. Which of the following are the limitations in the creation of credit of commercial banks?

A. The amount of cash that commercial banks possess
B. Supply of collateral security
C. Monetary policy of the central bank
D. Allied deposits scheme
E. Deposits linked with special benefits
Choose the correct answer from the options given below :

Correct Answer: (d) D and E only
Solution:The limitations in the creation of credit of commercial banks are:
■ Allied deposits
■ Deposits linked with special benefits (wrong in answer key)