NTA UGC NET/JRF Exam, June 2019 Commerce (Morning-Shift)

Total Questions: 100

1. After US dollar, which of the following currencies has largest weightage in determining the value of SDR?

Correct Answer: (c) Euro
Solution:

The IMF decided that the Renminbi (Chinese Yuan) would be added to the SDR basket since October 1, 2016. Since then SDR basket consists of the following five currencies:
(i) Dollor 41.73%
(ii) Euro 30.93%
(iii) Reniminbi (Chinese Yuan) 10.92%
(iv) Japanese Yen 8.33%
(v) British pound 8.09%

2. Product A requires 10 kg of material at the rate of ₹5 per kg. The actual consumption of material for the manufacturing of product A comes to 12 kg of material at the rate of ₹6 per kg. Direct material cost variance is

Correct Answer: (b) ₹22 (unfavourable
Solution:

Material cost variance = total standard cost - total actual cost
= (SQ × SP) - (AQ × AP)
= (10 × 5) - (12 × 6)
= 50-72 = - 22
= Rs. 22 (Unfavourable)

3. Arrange the following in order of their manifestations:

(A) Offer
(B) Acceptance
(C) Breach of contract
(D) Contract
Choose the correct option from the following:

Correct Answer: (b) (A), (B), (D) and (C)
Solution:

Correct order of their manifestations-
(A) Proposal/offer : U/S 2 (a)- When one person signifies to another his willingness to do or to obstain from doing anything with a view to obtaining the assent of that other such act or abstinence he is said to make a proposal

(B) Promise/Acceptance: U/S 2 (b): When the person to whom the proposal is made signifies his assent the reto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.

(C) Breach of contract/voidable contract U/S 2 (i): An agreat which is enforceable by law at the option of one or more of the parties there to, but not at the option of the other or other is a variable contract.

4. What is the probability that sum of outcomes on pair of dice is equal to 8?

Correct Answer: (b) 5/36
Solution:

Possible Outcome:
(1, 1) (1, 2) (1, 3) (1, 4) (1, 5) (1, 6) (2, 1) (2, 2) (2, 3) (2, 4) (2, 5) (2, 6) (3, 1) (3, 2) (3, 3) (3, 4) (3, 5) (3, 6) (4, 1) (4, 2) (4, 3) (4, 4) (4, 5) (4, 6) (5, 1), (5, 2) (5, 3) (5, 4) (5, 5) (5, 6) (6, 1) (6, 2) (6, 3) (6, 4) (6, 5) (6, 6) are the total number we get when we throw a pair of dice that is 36

Expected outcome: The probability of getting a sum of 8: (2, 6) (3, 5) (4, 4) (5, 3) (6, 2) are the 5 pairs which upon adding we get 8
Probability is the ratio of the number of expected outcomes to the no. of all possible outcomes. Therefore 5/36 is the answer.

5. In which of the following commodities, when a consumer spends so much that negative income effect overwhelms the positive substitution effect so as the underlying demand curve is positively sloped?

Correct Answer: (c) Giffen goods
Solution:

In Giffen goods, a consumer spends so much that the negative income effect overwhelms the positive substitution effect so as the underlying demand curve is positively sloped.

•A Giffen goods is a low income, a non-luxury product..........standard economic and consumer demand theory.
• Demand for Giffen goods rises when the price rises and falls when the price falls.
• In econometrics, this results in an upward-sloping demand curve.

6. Chalapathi Rao Committee was constituted for restructuring of

Correct Answer: (d) Regional Rural Banks in India
Solution:

Chalapathi Rao Committee was constituted for the restructuring of Regional Rural Banks in India.

• The committee under the chairmanship of Chalapathy Rao in 2003 recommended that the entire system of RRBS may be consolidated while retaining the advantages of the regional character of these institutions.

• As part of the process, some sponsor banks may be eased out.
• The sponsoring institutions may include other approved financial institutions as well, in addition to commercial banks.

7. In the context of the above two statements, which one of the following codes is correct?

Assertion (A): Brainstorming technique demands generation of a number of alternatives to a problem.
Reason (R): Participants generate as many alternatives as possible without evaluating them in brainstorming sessions;

Correct Answer: (a) Statement (A) is correct and (R) is the correct explanation of (A)
Solution:

Assertion (A): Brain storming technique demands generation of a number of alternatives to a problem.
•Therefore assertion (A) is the correct.
Reason (R): participants generate as many alternatives as possible without evaluating them in brainstorming sessions
• Therefore Reason (R) is the correct and R is the correct explanation of (A)

8. Which of the following is the predecessor of the IRDA Act, 1999?

Correct Answer: (a) The Insurance Act, 1938
Solution:

The Insurance Regulatory and Development Authority of India (IRDAI) is a regulatory body under the jurisdiction ministry of finance, government of India.

• It was constituted by the insurance regulatory and development authority act 1999 (IRDA) an act of parliament passed by the government of India.
• In 1938 the legislation was Consolidated and amended by the insurance act, 1938 with comprehensive provision to control the activities of insurers.

9. In tax laws, donation to approved and notifed association for scientific research is allowed as

Correct Answer: (b) 100% of the donation
Solution:

Section 80 GGA allows deductions for donations made towards scientific research or rural development.
• This deduction is allowed to all assesses except those who have an income (or loss) from a business and profession.

Mode of Payment :
Donations can be made in the form of a cheque or by a draft, or in cash; However, cash donations over Rs. 2,000 are not allowed as deductions.
• 100% of the amount donated or contributed is eligible for deductions.

10. Match List-I with List-II:

Choose the correct option from those given below:

Correct Answer: (d) (A)-(iii); (B)-(iv); (C)-(i); (D)-(ii)
Solution:

The following are of the correct answers-