NTA UGC NET/JRF Exam, June 2023 (Commerce) Shift-II

Total Questions: 100

1. One or more parties to a negotiable instrument is/are discharged from liability in which of the following ways:

A. By giving the notice dishonour by the holder
B. By deliberately cancelling the name of party/parties
C. By taking qualified acceptance
D. By allowing drawee 24 hours to accept
E. By material alteration
Choose the most appropriate answer from the options given below :

Correct Answer: (d) A, B, C only
Solution:

The correct sequence of the leadership development process as adopted by Anderson consulting is as follow:
(i) By cancellation
(ii) By release
(iii) By Payment in due course
(iv) By Allowing Drawee
(v) By Material alteration
(vi) Notice of Dishonor
(vii) By Operation of law

2. The coexistence and cooperation between the formal and informal financial sector is commonly referred to as :

Correct Answer: (b) Financial dualism
Solution:

The coexistence and co-operation between the formal and informal financial sector is commonly referred to as Financial dualism. It was developed by Prof. Hala Myint. According to him such dualism rises because of division of money markets as unorganized and organised in LDCs (Least Developed Countries).

3. Identify the correct sequence of the leadership development process as adopted by Anderson Consulting

A. Coach executive teams on individual leadership and effective teamwork
B. Assess organisation’s direction and current strategies speed at which suneff results he achieved
C. Create effective communication strategically for key influence directors, shareholders, employees etc.
D. Coach individual exclusive performed behaviour along communications
E. Assess again existing culture dyne required shifts and action merer leader to charge them culture
Choose the correct answer from the options given below :

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

The correct sequence of the leadership development process as adopted by Anderson consulting is as follow:
(i) Assess organisation’s direction and current strategies speed at which suneff results he achieved
(ii) Assess again existing culture dyne required shifts and action merer leader to charge them culture
(iii) Coach individual exclusive performed behaviour along communications
(iv) Coach executive teams on individual leadership and effective teamwork
(v) Create effective communication strategically for key influence director, shareholder, employees etc.

4. Which of the following is not an essential characteristic of negotiable instrument?

Correct Answer: (e) a & d
Solution:

A negotiable instrument is a specialized type of financial document that are commonly used in commercial transactions and financial activities to facilitate payment and obligation.
Its features are as follow:
(i) In writing
(ii) Unconditional promise or order to pay.
(iii) Fixed amount.
(iv) No Additional undertaking.
(v) Signed by maker or drawer.
(vi) Transferable.

However option (a) sells little to a bonafide transferor for value and option (d) Transferor can sue in own name without giving notice to debtor both are not essential characteristics of negotiable instrument.

5. Match List-I with List-II

List-I (Capital structure theories)List-II (Key components)
A. MM approachI. Costs of financial distress
B. Pecking order theoryII. Assymetric information
C. Trade off theoryIII. No target capital structure
D. Signaling theoryIV. Home Made Leverage

Choose the correct answer from the options given below :

ABCD
(a)IIIIIVI
(b)IVIIIIII
(c)IVIIIIII
(d)IVIIIIII
Correct Answer: (b)
Solution:
List-I (Capital structure theories)List-II (Key components)
A. MM approach IV. Home Made Leverage
B. Pecking order theoryIII. No target capital structure
C. Trade off theoryI. Costs of financial distress
D. Signaling theory II. Assymetric information

6. Which are correct regulatory provisions for foreign bank operations in India?

A. They are incorporated in India and have their head office in foreign country
B. Foreign banks since 2002 have been allowed to set up their subsidiaries in India
C. If foreign banks are allowed to operate in India even if they are not financially sound
D. They have to operate according to the banking regulations in India
E. RBI approved that foreign banks which are present in India could open their branches
Choose the correct answer from the options given below :

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

The regulatory provisions for foreign bank operation in India are as follow:-
(i) Foreign banks since 2002 have been allowed to set up their subsidiaries in India
(ii) They have to operate according to the banking regulation in India.
(iii) RBI approved that foreign banks which are present in India could open their branches.

7. Which are the conditions in which unilateral relief is granted in cases where section 90 is not applicable in income tax?

A. Assessee should be resident of India in the previous year
B. The income should have accrued outside India
C. The assessee should not have paid the tax in such foreign country by deduction
D. The income should not accrued outside India
E. The income should be taxed both in India and a foreign country with India has no agreement for relief
Choose the correct answer from the options given below :

Correct Answer: (d) A, C, E only
Solution:

Section 90 of Income Tax Act deals with double taxation relief. It provides provisions to avoid double taxation of income in situations where taxpayers income is taxable both in India and another country. The various conditions in which unilateral relief is granted in cases where section 90 is not applicable are:
(i) Assessee should be resident of India in the previous year.
(ii) The income should have accrued outside India.
(iii) The income should be taxed both in India and a foreign country with India has no agreement for relief.

8. Arrange the following legislations in primary and secondary market in ascending order of its enactment

A. Mutual fund regulations
B. Credit rating agencies Regulations
C. Credit rating regulations
D. SEBI intermediaries regulations
E. Sweat equity regulations
Choose the correct answer from the options below :

Correct Answer: (d) A, B, E, D, C
Solution:The legislations in primary and secondary market in ascending order of its enactment are as follow:-
Mutual fund regulations  – 1996
Credit rating agencies Regulation – 1999
Sweat Equity Regulation  – 2002
SEBI intermediaries Regulations – 2008
Credit rating regulation  – 2009

9. Match List-I with List-II

List-I (International Trade Theories)List-II (Theory Propounders)
A. Factor Endowment theoryI. Adam Smith
B. Product life cycle theoryII. Micheal Porter
C. Absolute cost advantage theoryIII. Hecksher and Ohlin
D. Competitive advantage theoryIV. Reymond Vernon

Choose the correct answer from the options given below :

ABCD
(a)IIIVII
(b)IIIIIVII
(c)IIIIIIVI
(d)IVIIIIII
Correct Answer: (b)
Solution:
List-I (International Trade Theories)List-II (Theory Propounders)
A. Factor Endowment theory III. Hecksher and Ohlin
B. Product life cycle theoryIV. Reymond Vernon
C. Absolute cost advantage theoryI. Adam Smith
D. Competitive advantage theoryII. Micheal Porter

10. Which one of the below mentioned transaction is not a non-cash transaction?

Correct Answer: (c) Interest on dividend received from investing activities
Solution:

Off-balance sheet items of balance sheet are those items that only generate fee incomes to the banks rather they are not related with loans and deposits of banks. Example of such exposure are purchasing a future contract, issuing letter of credit, engaging in swap contract.