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

Total Questions: 100

91. Which of the following is an instance of non-conventional dumping?

(a) Sporadic dumping
(b) Predatory dumping
(c) Reverse dumping
(d) Persistent dumping

Correct Answer: (c) Reverse dumping

Solution:

Dumping is a term used in the context of international trade its when a country or company exports a product at a price that is lower in the foreign importing marketing then the price in the exporter's domestic market.
• Reverse dumping is followed in the overseas markets where the demand is less elastic. • Such markets tolerate a higher price.
•Thus dumping is done in the manufacturer's home market by selling locally at a lower price.
• Reserve dumping is an instance of non-conventional dumping.

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

Assertion (A) : U-shaped long-run average cost curve is based on the assumption that economies of scale prevails at small levels of production and diseconomies of scale prevails at larger level of production.
Reason (R) : Decreasing returns to scale arises primarily because as the scale of operation increases, it becomes even more difficult to manage the firm effectively.

(a) Both (A) and (R) are correct and (R) is the right explanation of (A)
(b) Both (A) and (R) are correct and (R) is not the right explanation of (A)
(c) (A) is correct But (R) is incorrect
(d) Both (A) and (R) are incorrect

Correct Answer: (b) Both (A) and (R) are correct and (R) is not the right explanation of (A)

Solution:

Assertion (A): U-shaped long-run average cost curve is based on the assumption that economies of scale prevails at small level of production and diseconomies of scale prevails at larger level of production.

- Thus the assertion (A) is the correct statement
Reason (R): Decreasing returns to scale arises primarily because as the scale of operation increases, it becomes even more difficult to manage the firm effectively.

- Thus the Reason (R) is the correct statement but not explained the A

93. Match List-I with List-II :

Choose the correct option from those given below:

(a) (A)-(iii); (B)-(ii); (C)-(i)
(b) (A)-(iii); (B)-(i); (C)-(ii)
(c) (A)-(i); (B)-(ii); (C)-(iii)
(d) (A)-(ii); (B)-(i); (C)-(iii)

Correct Answer: (a) (A)-(iii); (B)-(ii); (C)-(i)

Solution:

94. Which among the following is NOT true about BASEL?

(a) Initially it was named as Committee of Banking Regulations and Supervisory Practices (CBRS)
(b) BASEL was established by the Central Bank Governors of fifteen countries
(c) It was established by the end of 1974
(d) Disturbances in international currency and banking markets were responsible for its establishment

Correct Answer: (b) BASEL was established by the Central Bank Governors of fifteen countries

Solution:

BASEL NORMS: Basel norms or basel accords are the international banking regulations issued by the basel committee on banking supervision.

The basel norms is an effort to coordinate banking regulations across the globe, with the goal of strengthening the international banking system.

Basel committee on banking supervision:

Intitially it was named as committee of banking regulation and supervisory practices (CBRS)
It was established by the central bank governors of the group of '10' countries in 1974.
Disturbance in international currecny and banking markets were responsible for its establishment.
It provides a forum for regular cooperation on banking supervisory matters.

95. Excess capacity is NOT noticed in which of the following market conditions?

(a) Monopoly
(b) Monopolistic competition
(c) Oligopoly
(d) Perfect competition

Correct Answer: (d) Perfect competition

Solution:

• A perfectly competitive market is a hypothetical market where competition is at its greatest possible level. New classical economists argued that perfect competition would produce the best possible outcomes
• When the firm is producing less than what it can produce then it is said that the firm is having an excess capacity.
• It means that the firm can produce more at a lower cost.
• Whereas in the case of perfect competition the firm produces at the optimum level of output where cost is minimum and there is no excess capacity.

96. Credit worthiness score in India ranges between

(a) 300 to 600
(b) 300 to 900
(c) 500 to 1000
(d) 900 to 1600

Correct Answer: (b) 300 to 900

Solution:

A credit score refers to a '3' digit numeric value that represent the credit worthiness of an individual. The credit worthiness ranges between 300 to 900 with 900 being the highest and 300 being the least. This score is computed with the help of the credit history of an individual.
Banks and most financial institutions prefer extending credit to an individual whose score is 750 and more.

97. As per Section 53 of the companies Act, 2013, the balance in the Security Premium Account cannot be utilized for

(a) payment of dividend
(b) writing off discount on issue of shares
(c) issue of fully paid-up bonus share
(d) capital losses

Correct Answer: (a) payment of dividend

Solution:

Share premium can be defined as the excess amount received the company over and above the face value of its shares. All types of companies can issue their shares at a premium.

It states the specific purpose for which this balance may be uses, so the account can only be used for the following purpose and no other purpose.

• For the issue of fully paid bonus share capital.
• For meeting the preliminary expense incurred by the company.
• For meeting the expenses, commission or discount incurred concerning securities previously issued by the company.
• For ensuring the availability of the premium on the redemption of redeemable debentures or preference share capital of the company.

98. A company issues 10% irredeemable preference shares. The face value per share is ₹100, but the issue price is ₹95. What is the cost of preference share?

(a) 10.63%
(b) 10.73%
(c) 10.83%
(d) 10.53%

Correct Answer: (d) 10.53%

Solution:

Cost of preference share

99. One belt, one road initiative (BRI) is NOT intended to

(a) trade protectionism
(b) strengthening logistic and supply chain
(c) improve cost competitiveness
(d) rebalance trade dominance

Correct Answer: (a) trade protectionism

Solution:

The initiative defines five major priorities:
• Policy coordination
• Infrastructure connectivity
• Unimpeded trade
• Financial integration
• And connecting people
- The objective are stated to be achieved by strengthening logistics and supply chain, improving cost competitiveness, rebalancing trade imbalances and many other strategies that will promote market integration.