December 2019 GSET Commerce Solved Paper
Paper – II (Commerce)
Subject Code: 17
Marks: 100
Time: 120 Minutes (2 Hours)
Note: This paper contains ONE HUNDRED (100) multiple-choice/assertion/reasoning questions/matching questions. Each question carrying TWO (2) marks. Attempt all the questions.
1. Deductions to senior citizens’ in relation to interest Income from deposits (including savings deposits) with Banks (or) Post Office for the A. Y. 2019-20 is:
(A) Rs. 10,000.
(B) Rs. 40,000.
(C) Rs. 50,000.
(D) Rs. 1,00,000.
Ans: (C) Rs. 50,000.
2. IGST stands for:
(A) Indian Goods and Services Tax.
(B) Integrated Goods and Service Tax.
(C) International Goods and Service Tax.
(D) Internal Goods and Service Tax.
Ans: (B) Integrated Goods and Service Tax.
3. Aided and unaided recall is related with:
(A) Advertising Budget decision.
(B) Advertising Objective decision.
(C) Advertising Effectiveness decision.
(D) Personal selling decision.
Ans: (C) Advertising Effectiveness decision.
4. NABARD was established in the year _______.
(A) 1935.
(B) 1955.
(C) 1969.
(D) 1982.
Ans: (D) 1982.
5. SLR stands for:
(A) Statutory Liquidity Rate.
(B) Statutory Liquidity Ratio.
(C) Statutory Liquidity Return.
(D) Statutory Liquidity Risk.
Ans: (B) Statutory Liquidity Ratio.
6. The ratio of exchange between two groups in the indifference curve analysis is shown by _______.
(A) Price line.
(B) Price consumption curve.
(C) Income consumption curve.
(D) Production Probability curve.
Ans: (A) Price line.
7. Fixed Assets are to be shown at cost less depreciation on the basis of:
(A) Cost Concept.
(B) Revenue Concept.
(C) Separate Entity Concept.
(D) Going Concern Concept.
Ans: (D) Going Concern Concept.
8. The operationalise online interest, mobile banking, and debit card and credit card tools, one of the below is not essential:
(A) Compliance with the Information Technology Act, 2000.
(B) The Right to Information Act, 2005.
(C) Satellite connection.
(D) Selection of a portal and server.
Ans: (B) The Right to Information Act, 2005.
9. If the correlation coefficient is 0.8; the percentage of variation in the dependent variable explained by the variation in the independent variable is:
(A) 0.80%.
(B) 80%.
(C) 0.64%.
(D) 64%.
Ans: (D) 64%.
10. Need for achievement, affiliation and power are associated with the theory of:
(A) Learning.
(B) Perception.
(C) Motivation.
(D) Attitude.
Ans: (C) Motivation.
11. Which among the following is closely associated with intellectual property rights?
(A) GATS.
(B) TRIMS.
(C) TRIPs.
(D) MFN.
Ans: (C) TRIPs.
12. MCA stands for:
(A) Ministry of Company Affairs.
(B) Ministry of Council Affairs.
(C) Ministry of Corporate Affairs.
(D) Member of Company Affairs.
Ans: (C) Ministry of Corporate Affairs.
13. Implicit costs are:
(A) equal to total fixed cost.
(B) comprised entirely of variable cost.
(C) ‘payments’ for self-employed resources.
(D) always greater in the short-run than in the long-run.
Ans: (C) ‘payments’ for self-employed resources.
14. Circulating working capital is also called:
(A) Net Working Capital.
(B) Regular Working Capital.
(C) Temporary Working Capital.
(D) Permanent Working Capital.
Ans: (C) Temporary Working Capital.
15. In regression line, what Analysis of variance (ANOVA) calculates?
(A) z-score.
(B) chi-square.
(C) t-scope.
(D) F-ratio.
Ans: (D) F-ratio.
16. Interest on Borrowed capital of a self-occupied property acquired (or) constructed after 1st April, 1999 (or) for renewals (or) repairs is deductible for the A.Y. 2019-20 is upto:
(A) Rs. 30,000.
(B) Rs. 1,00,000.
(C) Rs. 1,50,000.
(D) Rs. 2,00,000.
Ans: (D) Rs. 2,00,000.
17. _______ is a single product that marketer offer to its market for consumption.
(A) Product line.
(B) Product length.
(C) Product mix width.
(D) Product depth.
Ans: (A) Product line.
18. IFCI stands for:
(A) Indian Financial Corporation of India.
(B) Industrial Finance Corporation of India.
(C) Indian Finance Company of India.
(D) International Finance Corporation of India.
Ans: (B) Industrial Finance Corporation of India.
19. Amongst the following theories of recruitment, which one is not related to it:
(A) Objective factor theory.
(B) Critical contrast theory.
(C) Critical approval theory.
(D) Subjective factor theory.
Ans: (C) Critical approval theory.
20. Which of the following tax is levied in the case of Inter-State Supply?
(A) CGST.
(B) SGST.
(C) UTGST.
(D) IGST.
Ans: (D) IGST.
21. International trade theory which provides that capital intensive country should export labour intensive goods and import capital goods is referred to as:
(A) Mercantilism theory.
(B) Leontief Paradox.
(C) Heckscher-Ohlin Theory.
(D) Theory of Comparative Advantage.
Ans: (B) Leontief Paradox.
22. The correct sequence of preparing final accounts is:
(A) Journal, Ledger, Trial Balance, Balance Sheet.
(B) Ledger, Trial Balance, Balance Sheet, Journal.
(C) Trial Balance, Balance Sheet, Ledger, Journal.
(D) Journal, Trial Balance, Ledger, Balance Sheet.
Ans: (A) Journal, Ledger, Trial Balance, Balance Sheet.
23. In the case of Giffen good:
(A) the substitution effect is more than the income effect.
(B) the substitution effect and income effect are same.
(C) the income effect is more than the substitution effect.
(D) the income and substitution effect cancel out each other.
Ans: (C) the income effect is more than the substitution effect.
24. Which among the following is the correct character of the foreign exchange market?
(A) Foreign exchange market is domestic market.
(B) Foreign exchange market is operated within a country.
(C) Foreign exchange market is dynamic and round the clock market.
(D) Foreign exchange market is used only for trade related transactions.
Ans: (C) Foreign exchange market is dynamic and round the clock market.
26. What is the maximum rate which can be imposed by the State Government under SGST Act?
(A) 28%.
(B) 20%.
(C) 40%.
(D) 24%.
Ans: (B) 20%.
27. Long-term Capital Gain on listed equity shares, units equity oriented mutual funds (or) business trust is exempted for the A.Y. 2019-20 u/s 112A is upto:
(A) Rs. 2,00,000.
(B) Rs. 3,00,000.
(C) Rs. 1,00,000.
(D) Rs. 50,000.
Ans: (C) Rs. 1,00,000.
28. _______ is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.
(A) Positioning.
(B) Valuation.
(C) Pricing.
(D) Commercialization.
Ans: (A) Positioning.
29. NSDL denotes:
(A) National Supply and Distribution Limited.
(B) National Securities Depository Limited.
(C) National Securities Deposits and Loan.
(D) National Securities Development Limited.
Ans: (B) National Securities Depository Limited.
30. The concept of classical conditioning was given by:
(A) Sigmund Freud.
(B) Ivan Pavlov.
(C) B.F. Skinner.
(D) Jean Piaget.
Ans: (B) Ivan Pavlov.
31. Which of the following is not the agency of World Bank?
(A) MIGA.
(B) ADB.
(C) ICSID.
(D) IDA.
Ans: (B) ADB.
32. When shares are issued at a price higher than par value, the excess of issue price over par value is a _______.
(A) Capital Profit.
(B) Capital Reserve.
(C) Revenue Profit.
(D) Revenue Reserve.
Ans: (A) Capital Profit.
33. The law of diminishing returns only applies in cases where:
(A) there is increasing scarcity of factors of production.
(B) the price of extra units of a factor is increasing.
(C) there is at least one fixed factor of production.
(D) Capital is a valuable factor.
Ans: (C) there is at least one fixed factor of production.
34. Gordon’s model relates to:
(A) Reserve Policy.
(B) Capital Policy.
(C) Fund Policy.
(D) Dividend Policy.
Ans: (D) Dividend Policy.
35. Stratified sample is _______ within and _______ between the strata.
(A) Homogeneous, Heterogeneous.
(B) Homogeneous, Independent.
(C) Heterogeneous, Homogeneous.
(D) Heterogeneous, Independent.
Ans: (A) Homogeneous, Heterogeneous.
36. Short-term Capital Gain of unlisted companies for the A.Y. 2019-20 is taxed at:
(A) 10%.
(B) 15%.
(C) 20%.
(D) 30%.
Ans: (D) 30%.
37. In the Company Act, 2013 under definitions sub-clause 45; “Government Company means any company in which not less than _______ percent of the paid up share capital is held by the Central Government or by any State Government or Governments or partly by the Central and partly by one or more State Governments and includes a company which is a subsidiary company of such a Government company.
(A) 41%.
(B) 45%.
(C) 49%.
(D) 51%.
Ans: (D) 51%.
38. Marketers have traditionally classified products on the basis of three characteristics _______ tangibility and use.
(A) availability.
(B) affordability.
(C) aesthetics.
(D) durability.
Ans: (D) durability.
39. The Workmen’s Compensation Act is enacted in the year:
(A) 1921.
(B) 1923.
(C) 1922.
(D) 1924.
Ans: (B) 1923.
40. The Minimum capital Adequacy Ratio (including capital conservation buffer) under Basel III norms is _______.
(A) 9%.
(B) 10%.
(C) 10.5%.
(D) 12%.
Ans: (C) 10.5%.
41. Depreciation allowed on Intangible Assets (know-how, patents, copy rights, trademarks) for the A.Y. 2019-20 is:
(A) 5%.
(B) 10%.
(C) 20%.
(D) 25%.
Ans: (D) 25%.
42. _______ is a cost unit of crude oil.
(A) Barrel.
(B) Litre.
(C) Gallon.
(D) Kilogram.
Ans: (A) Barrel.
43. “The utility from a bundle of goods will be maximum when the marginal utility of each commodity is equal to the price multiplied by the marginal utility of money.’ Who has given this statement?
(A) Hicks.
(B) Adam Smith.
(C) Marshall.
(D) Samuelson.
Ans: (C) Marshall.
44. IMF was formed in:
(A) 1945.
(B) 1946.
(C) 1947.
(D) 1948.
Ans: (A) 1945.
45. You obtained a sample of data that has relatively normally distributed and had no extreme scores. Which measures of central tendency you to know average of this information?
(A) Mean.
(B) Median.
(C) Mode.
(D) Harmonic mean.
Ans: (A) Mean.
46. Rate of tax deducted at source for winnings from Lotteries for the A.Y. 2019-20 (excluding surcharge, health and education cess) is:
(A) 10%.
(B) 20%.
(C) 30%.
(D) 40%.
Ans: (C) 30%.
47. Contribution made to an approved university, college (or) other Institutions for the use of scientific research, related (or) unrelated to the business of the assessee, weighted deduction for the A.Y. 2019-20 is:
(A) 30%.
(B) 50%.
(C) 75%.
(D) 100%.
Ans: (D) 100%.
48. The “Official Liquidator” means an official liquidator appointed under sub-section (1) of section _______ of the Company Act, 2013.
(A) 351.
(B) 359.
(C) 361.
(D) 369.
Ans: (B) 359.
49. Which of the following is an example of a pure service?
(A) air travel.
(B) psychotherapy.
(C) baby oil.
(D) a laptop.
Ans: (B) psychotherapy.
50. DEMAT stands for:
(A) Detailed Minimum Alternate Tax.
(B) Dematerialised Automation.
(C) Dematerialised Account.
(D) Default Minimum Alternate Tax.
Ans: (C) Dematerialised Account.
51. Sociometric analysis designed and developed by Jacob Levy Moreno is primarily associated with _______.
(A) Motivation.
(B) Perception.
(C) Group Dynamics.
(D) Attitude.
Ans: (C) Group Dynamics.
52. Which of the following is an example of an issue for which an agreement has not been made between two or more countries?
(A) Restricting harmful emissions.
(B) Deep-sea mining in non-coastal areas of the oceans.
(C) Preserving endangered species.
(D) Banning the use of certain pesticides.
Ans: (B) Deep-sea mining in non-coastal areas of the oceans.
53. IFRS stands for:
(A) International Financial Reporting Statements.
(B) International Financial Reporting Standards.
(C) Indian Financial Reporting Statements.
(D) Indian Financial Reporting Standards.
Ans: (B) International Financial Reporting Standards.
54. With fixed cost of Rs. 400, a firm has average total costs of Rs. 3 and average variable cost of Rs. 2.50. Its output is _______.
(A) 200 units.
(B) 400 units.
(C) 800 units.
(D) 1600 units.
Ans: (C) 800 units.
55. Right to sell security is called:
(A) Sell option.
(B) Put option.
(C) Call option.
(D) Double option.
Ans: (B) Put option.
56. Which of the following measures of central tendency is not sensitive to extreme values?
(A) Mean.
(B) Median.
(C) Mode.
(D) Harmonic mean.
Ans: (B) Median.
57. Expenditure for Skill Development u/s 36 CCD, a weighted deduction for the A.Y. 2019-20 allowed is:
(A) 50%.
(B) 100%.
(C) 150%.
(D) 75%.
Ans: (C) 150%.
58. Flaw in capacity to may arise from _______.
(A) Minority.
(B) Lack of free consent.
(C) Lack of consideration.
(D) Absence of legal formalities.
Ans: (A) Minority.
59. Which of the following is the first step in setting a pricing policy?
(A) selecting a pricing method.
(B) selecting the pricing objective.
(C) determining demand.
(D) estimating cost.
Ans: (B) selecting the pricing objective.
60. IRDA was founded in the year _______.
(A) 1955.
(B) 1969.
(C) 1982.
(D) 1999.
Ans: (D) 1999.
61. Which of the following is not included in McKensey’s 7-S framework?
(A) Strategy.
(B) Structure.
(C) Software.
(D) Skills.
Ans: (C) Software.
62. Method study, motion study, time study, fatigue study and rate setting are related with _______.
(A) Charles Babbage.
(B) F.W. Taylor.
(C) James Watt.
(D) Robert Owen.
Ans: (B) F.W. Taylor.
63. The operations of banks and financial institutions are not regulated by:
(A) The RBI Act, 1934.
(B) The Banking Regulations Act, 1949.
(C) Information Technology Act, 2000.
(D) The Companies Act, 2013.
Ans: (D) The Companies Act, 2013.
64. A cost auditor is required to submit his report to the:
(A) Central Government.
(B) Company Law Board.
(C) Board of Directors.
(D) Registrar of the Companies.
Ans: (A) Central Government.
65. Market penetration pricing strategy can be adopted when:
(A) Market is highly price sensitive.
(B) Low price stimulates market growth.
(C) Both (A) and (B).
(D) Neither (A) nor (B).
Ans: (C) Both (A) and (B).
66. GDR stands for:
(A) Global Depository Receipt.
(B) Global Deposit Receipt.
(C) Global Dividend Receipt.
(D) Global Drawing Receipt.
Ans: (A) Global Depository Receipt.
67. Analysis of variance (ANOVA) is a test for equality of _______.
(A) Standard deviation.
(B) Mean.
(C) Percentage.
(D) Only two parameters.
Ans: (B) Mean.
68. _______ is the study that relates with no. of people one can super wise.
(A) Line of control.
(B) Length of control.
(C) Span of control.
(D) Line and staff structure of organisation.
Ans: (C) Span of control.
69. UPI denotes:
(A) United Payment Interface.
(B) Unity Program for India.
(C) Union Progressive India.
(D) Unified Payment Interface.
Ans: (D) Unified Payment Interface.
70. When is a pull strategy appropriate?
(A) when there is low brand loyalty.
(B) when consumers are able to perceive differences between brands.
(C) when brand choice is made in the store.
(D) when it is a low involvement purchase.
Ans: (B) when consumers are able to perceive differences between brands.
71. The omission of the creditor to sue within the period of limitation:
(A) Discharges the surety.
(B) Does not discharge the surety.
(C) Makes the contract of guarantee void.
(D) Makes the contract of guarantee illegal.
Ans: (B) Does not discharge the surety.
72. Dividend received by a residential shareholder for the A.Y. 2019-20 from all foreign companies are:
(A) Fully taxable.
(B) Fully exempted.
(C) Taxable upto Rs. 5,00,000.
(D) Taxable upto Rs. 10,00,000.
Ans: (A) Fully taxable.
73. The Maastricht Treaty of February 1992 renamed the European Community (EC) as:
(A) The European Union (EU).
(B) The European Economic Union (EEU).
(C) The European Economic Community (EEC).
(D) The European Monetary Union (EMU).
Ans: (A) The European Union (EU).
74. Primary packaging cost is an example of _______.
(A) Selling cost.
(B) Indirect cost.
(C) Overhead cost.
(D) Direct cost.
Ans: (D) Direct cost.
75. The market demand curve for a perfectly competitive market is QD = 12 – 2P. The market supply curve is QS = 3 + P. the market will be in equilibrium if:
(A) P = 6, Q = 9.
(B) P = 5, Q = 2.
(C) P = 4, Q = 4.
(D) P = 3, Q = 6.
Ans: (D) P = 3, Q = 6.
76. The quotas of all the member countries with the IMF are valued in terms of:
(A) GDR.
(B) SDR.
(C) ADR.
(D) ODR.
Ans: (B) SDR.
78. Children Education Allowance given for Children’s Education in India the amount exempt for the A.Y. 2019-20 is limited to:
(A) Rs. 300 per child per month upto maximum of two children.
(B) Rs. 200 per child per month upto maximum of two children.
(C) Rs. 100 per child per month upto maximum of two children.
(D) Rs. 500 per child per month upto maximum of two children.
Ans: (C) Rs. 100 per child per month upto maximum of two children.
79. A firm in the course of its business receives money from a third party. One of the partners misapplies it:
(A) The firm is liable to make good the loss.
(B) The firm is not liable to make good the loss.
(C) The defaulting partner alone is liable.
(D) The defaulting partner is not liable.
Ans: (A) The firm is liable to make good the loss.
80. Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service?
(A) advertising.
(B) direct marketing.
(C) public relations.
(D) sales promotion.
Ans: (D) sales promotion.
81. PMJDY – a financial inclusion program denotes:
(A) Pradhan Mantri Jan Dhan year.
(B) Pradhan Mantri Jan Dhan Yojana.
(C) Pradhan Mantri Jan Development Yojana.
(D) Pradhan Mantri Job Development Yojana.
Ans: (B) Pradhan Mantri Jan Dhan Yojana.
82. “The Interpretation of Dreams” is the book authored by:
(A) B. F. Skinner.
(B) Sigmund Freud.
(C) Carl Jung.
(D) Erick Erickson.
Ans: (B) Sigmund Freud.
83. As per the Foreign Trade Policy 2015-2020, a three star export house should have:
(A) Export performance (FOB/FOR) of US$ 100 million during current and previous two years.
(B) Export performance (FOB/FOR) of US$ 500 million during current and previous two years.
(C) Export performance (FOB/FOR) of US$ 1000 million during current and previous two years.
(D) Export performance (FOB/FOR) of US$ 2000 million during current and previous two years.
Ans: (A) Export performance (FOB/FOR) of US$ 100 million during current and previous two years.
84. A company is an example of a:
(A) Cost Centre.
(B) Production Centre.
(C) Profit Centre.
(D) Cost Unit.
Ans: (C) Profit Centre.
85. When demand is price inelastic:
(A) price and total revenue change in opposite directions.
(B) a seller should decrease the price to increase total revenue.
(C) too few goods are being produced from society’s pint of view.
(D) price and total revenue change in the same direction.
Ans: (D) price and total revenue change in the same direction.
86. The correct formula of Walter’s dividend model is:
(A) P = D/Ka = 9.
(B) P = D/Kg.
(C) P = D/Ke.
(D) P = D/Kg = a.
Ans: z
87. In chi-square test of hypothesis, null hypothesis state that variables are _______.
(A) Dependent.
(B) Independent.
(C) Cause and effect.
(D) Random.
Ans: (B) Independent.
88. The value of unfurnished Rent Free Accommodation owned by the employer of private sector employees where the population exceeds 25 lakhs, the basis of valuation for the A. Y. 2019-20 is:
(A) 10% of salary.
(B) 7.5% of salary.
(C) 20% of salary.
(D) 15% of salary.
Ans: (D) 15% of salary.
89. If a new contract is submitted in place of an existing contract, it is called:
(A) Alteration.
(B) Recession.
(C) Remission.
(D) Novation.
Ans: (D) Novation.
90. _______ aims to create liking, preference, conviction, and purchase of a product or service.
(A) Corporate advertising.
(B) Reminder advertising.
(C) Persuasive advertising.
(D) Reinforcement advertising.
Ans: (C) Persuasive advertising.
91. Coaching, Role Playing, Case-study, Simulation are the popular methods related with which:
(A) Recruitment.
(B) Selection.
(C) Training and Development.
(D) Retrenchment.
Ans: (C) Training and Development.
92. ETF stands for:
(A) Electronic Trade Funds.
(B) Exchange Traded Funds.
(C) Exchange Tariff Funds.
(D) Electronic Teller Funds.
Ans: (B) Exchange Traded Funds.
93. What is the popular term used for that type of option in Foreign Exchange Market which provides the holder the right to purchase or sell foreign currency at the most favourable exchange rate realized over the life of the option?
(A) Forward reversing option.
(B) Look-back option.
(C) Preference option.
(D) Basket option.
Ans: (B) Look-back option.
94. Contribution is the difference between:
(A) Sales value and variable costs of sales.
(B) Sales value and fixed costs of sales.
(C) Sales value and period costs of sales.
(D) Sales value and overhead costs of sales.
Ans: (A) Sales value and variable costs of sales.
95. If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is _______.
(A) Rs. 93.75.
(B) Rs. 97.78.
(C) Rs. 750.
(D) Rs. 880.
Ans: (C) Rs. 750.
96. MPC stands for:
(A) Money Policy Committee.
(B) Member Policy Committee.
(C) Monetary Policy Committee.
(D) Monetary Public Committee.
Ans: (C) Monetary Policy Committee.
97. As the sample size becomes larger, the type-I error probability _______.
(A) Increase.
(B) Does not change.
(C) Decrease.
(D) Infinite.
Ans: (B) Does not change.
98. Mr. Smart lends Rs. 5,000 to Ms. Sweety. Mr. Smart tells Ms. Sweety after a week that she need not repay the amount; the contract is discharged by _______.
(A) Breach.
(B) Waiver.
(C) Novation.
(D) Performance.
Ans: (B) Waiver.
99. During which of the following stages in new product development decision-making do managers analyze if they can find a good thought consumers say they would try?
(A) idea generation.
(B) idea screening.
(C) business analysis.
(D) concept development and testing.
Ans: (D) concept development and testing.
100. NBSFO’s:
(A) Non-Bank Statutory Financial Organisations.
(B) National Bank for Securities Fund Organisations.
(C) National Bank for Statutory Fund Organisations.
(D) Non-Bank Securities Financial Organisations.
Ans: (A) Non-Bank Statutory Financial Organisations.
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