UGC NTA NET/JRF Exam, Management, December-2020/June-2021

Total Questions: 100

61. An outlier does NOT affect which of the following statistical measures?

A. Quartile range
B. Standard deviation
C. Median
D. Regression coefficient
Choose the correct answer from the options given below:

Correct Answer: (a) A and C only
Solution:

•  Quartile range is unaffected by outliers or extreme values.
• Outliers or extreme values impact the mean, standard deviation and range of other statistics.
• Median is less affected by outliers and skewell data than the mean.
• In most practical circumstances an outlier decreases the value of a regression relationship but it's also possible that in some circumstances an outlier may increase a improve regression.

62. Out of the following, which are the IMF facilities available to member countries?

A. Extended Fund Facility (EFF)
B. Structural Adjustment Lending (SAL)
C. Compensatory Financing Facility (CFF)
D. Stand-by Arrangements (SBА)
Choose the correct answer from the options given below:

Correct Answer: (c) A, C and D only
Solution:

IMF facilities provided to member countries.
• Extended fund Facility (EFF)
• Compensatory Financing Facility (CFF)
• Stand by Arrangements (SBA)
• Stand by credit facility (SCF)
• Extend credit facility (ECF)
Therefore, EFF, CFF and SBA are correct answer.

63. Which of the following are types of foreign exchange risks or exposures?

A. Translation Exposure
B. Transaction Exposure
C. Social Exposure
D. Economic Exposure
Choose the correct answer from the options given below:

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

Foreign exchange risk: It is the impact the firm faces due to exchange rate fluctuations or changes in the international currency rate.
Foreign exchange risk or exposures:
Transaction risk- It is the gap between the fixation and settlement of the transaction.
Translation risk- It is risk of losing value in converting foreign currency into domestic currency.
Economic risk- Change in government regulation, taxes, political influence, demand, supply status etc. all those factors affect foreign currency in global market substantially.

64. Out of the following, the examples of radical innovations are:

A. Personal Computers
B. Frozen Yogurt
C. Disposable diapers
D. Overnight mail delivery
E. Microwave popcorn
Choose the correct answer from the options given below:

Correct Answer: (d) A, C and D only
Solution:

Radical innovation refers to an invention that represents something's new to the world. Radical innovations typically carry more risk, promise gather reward and are more disruptive than incremental innovations, which in general improve upon something that already exists.
Examples of Radical innovations:
• Personal computers
• Disposable diapers
• Overnight mail delivery
• Cloud technology
• Washing machine

65. Technical feasibility analysis will include which of the following?

A. Crucial technical specifications with respect to the design and product safety B. Engineering requirements
C. Product development
D. Product testing
E. Plant location
Choose the correct answer from the options given below:

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

Technical feasibility is a standard practice for companies to conduct feasibility studies before commencing work on a project. Technical Feasibility analysis will include crucial technical specifications with respect to the design and product safety, engineering requirement product development, product testing and plant location.

66. Match List I with List II

   List-I (Concepts)    List-II (Descriptions)
 (A) Annuity (I) Process of application of interest over interest, period after period, on a given sum at specific rate for specified time.
 (B) Time value of money (II) A fixed and equal amount of money payable or receivable at periodic intervals of time equal to the amount of loan (principal) and interest at a given rate.
 (C)  Compounding (III) Widely used in the field of finance in determination of equated monthly installments for recovery of loans in a specified time period at a given rate of interest.
 (D) EMI (IV) A fixed and equal amount of money payable or receivable at periodic intervals evenly spaced over time.

Choose the correct answer form the options given below:

Correct Answer: (a) A-IV, B-III, C-I, D-II
Solution:

The code of correct matching list-I with list-II

   List-I (Concepts)    List-II (Descriptions)
 (A) Annuity (IV) A fixed and equal amount of money payable or receivable at periodic intervals evenly spaced over time.
 (B) Time value of money (III) Widely used in the field of finance in determination of equated monthly installments for recovery of loans in a specified time period at a given rate of interest.
 (C) Compounding (I) Process of application of interest over interest, period after period, on a given sum at specific rate for specified time.
 (D) EMI (II) A fixed and equal amount of money payable or receivable at periodic intervals of time equal to the amount of loan (principal) and interest at a given rate.

67. Match List I with List II

   List-I    List-II
 (A) Snob effect (I) If firms are disproportionately powerful, the market leader makes the first move and captures two-third, of the market.
 (B) Small-world model (II) When some people demand a smaller quantity of a commodity as more people consume it, in order to be different and exclusive
 (C) Stackelberg model (III) Oligopolistic firms seek to maximize sales after an adequate rate of profit has been earned to satisfy stockholders.
 (D) Sales maximisation model (IV) Theory that a corporate giant can be made to operate as a small firm by linking well connected individuals from each level of the organisation to one another.

Choose the correct answer form the options given below:

Correct Answer: (b) A-II, B-IV, C-I, D-III
Solution:

The code of correct matching of List-I with List-II

    List-I       List-II
 (A) Snob effect (II) When some people demand a smaller quantity of a commodity as more people consume it, in order to be different and exclusive
 (B) Small-world model (IV) Theory that a corporate giant can be made to operate as a small firm by linking well connected individuals from each level of the organisation to one another.
 (C) Stackelberg  model (I) If firms are disproportionately powerful, the market leader makes the first move and captures two-third, of the market.
 (D) Sales maximisation model (III) Oligopolistic firms seek to maximize sales after an adequate rate of profit has been earned to satisfy stockholders.

68. Match List I with List II

   List-I   List-II
 (A) Simple structure (I) A structure that supports an organization's capacity to continuously adopt and change.
 (B) Functional structure (II) A structure in which the entire organization is made up of workgroups.
 (C) Team structure (III) It is an organizational design that groups similar occupational specialties together.
 (D) Learning organization structure (IV) It is an organizational design with low departmentalization, wide span of control and little formalization

Choose the correct answer form the options given below:

Correct Answer: (a) A-IV, B-III, C-II, D-I
Solution:

The code of correct matching of List-I with List-II

   List-I   List-II
 (A) Simple structure (IV) It is an organizational design with low departmentalization, wide span of control and little formalization
 (B) Functional structure (III) It is an organizational design that groups similar occupational specialties together.
 (C) Team structure (II) A structure in which the entire organization is made up of work groups.
 (D) Learning organization structure (I) A structure that supports an organization's capacity to continuously adopt and change.

69. Match List I with List II

  List-I     List-II
 (A) Ind As 11 (I) Revenue recognition
 (B) Ind As 2 (II) Effect of change in exchange rate
 (C) Ind As 3 (III) Valuation of inventories
 (D) Ind As 9 (IV) Cash flow statement

Choose the correct answer form the options given below:

Correct Answer: (d) A-II, B-III, C-IV, D-I
Solution:

The code of correct matching of list-I with list-II

  List-I    List-II
 (A) Ind As 11 (II) Effect of change in exchange rate
 (B) Ind As 2 (III) Valuation of inventories
 (C) Ind As 3 (IV) Cash flow statement
 (D) Ind As 9 (I) Revenue recognition

70. Match List I with List II

  List-I (Strategies)  List-II (Description)
 (A) Protective put (I) Buying an asset along with a put on it
 (B) Covered call (II) Buying a call as well as put option on an asset at the same exercise price.
 (C) Long straddle (III) Combing two or more options on the same asset with differing exercise prices or times to maturity.
 (D) Spread (IV) Writing a call position on an asset along with buying the asset

Choose the correct answer form the options given below:

Correct Answer: (b) A-I, B-IV, C-II, D-III
Solution:

The code of correct matching of list-I with list-II

   List-I (Strategies)    List-II (Description)
 (A) Protective put (I) Buying an asset along with a put on it
 (B) Covered call (IV) Writing a call position on an asset along with buying the asset
 (C) Long straddle (II) Buying a call as well as put option on an asset at the same exercise price.
 (D) Spread (III) Combing two or more options on the same asset with differing exercise prices or times to maturity.