PAPER-III

COMMERCE
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08

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J-08-12

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Roll No.________________________________
(In words)
[Maximum Marks : 150
Number of Questions in this Booklet : 75

1.
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, :
(i) -
-

(ii) -

/


-

-

(iii) OMR -

4. (A), (B), (C) (D)


:
(C)
5. OMR
OMR
,

6.
7. (Rough Work)
8. OMR ,
,
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,

9. - OMR


OMR

10. /
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12.
1
P.T.O.

COMMERCE
PAPER III
Note : This paper contains seventy five (75) objective type questions of two (2) marks
each. All questions are compulsory.
1.

2.

3.

If Opening Stock is ` 10,000, Net

Purchases ` 70,000, Wages ` 2,500,
Carriage inward ` 500 and Closing
Stock ` 15,000, what is the
Manufacturing Cost ?
(A) ` 65,000
(B) ` 83,000
(C) ` 68,000
(D) ` 73,000

4.

What does a high payout ratio

indicate ?
(A) A High Earning Per Share
(EPS)
(B) The management is not
ploughing back enough profit.
(C) The management is ploughing
back profit.
(D) The company is earning high
profit.

(i)

Balance Sheet is always

prepared from the point of
view of the business but not
from that of the owners.

(ii)

The financial relationship of

the business to its owners is
shown in the Balance Sheet.

(iii) Balance Sheet is always

related to a period of time.
Codes :
(A) (i) and (ii)
(B)

(ii) and (iii)

(C)

(i) and (iii)

(D) (i), (ii) and (iii)

5.

Which one of the following

statements is true ?
(A) Capital expenditure does not
affect the profitability of a
concern
but
revenue
expenditure does.
(B) Capital expenditure affects the
profitability of a concern
directly
but
revenue
expenditure does not.
(C) Capital expenditure affects the
profitability of a concern
indirectly
but
revenue
expenditure affects directly.
(D) Both capital expenditure and
revenue expenditure affect the
profitability of a concern
directly.

Paper-III

Identify the true statement of the

following :

6.

X and Y are partners in a firm

sharing profits in the ratios of 2 : 1.
Z is admitted with a 1/3 profit
sharing. What will be the new profit
sharing ratio of X, Y and Z ?
(A) 3 : 3 : 3

(B)

(C)

(D) 2 : 3 : 4

4:2:3

4:3:2

Which one of the following will not

affect the working capital ?
(A) Realisation
debtors.

of

cash

from

(B)

Sale of plant and machinery in

cash.

(C)

Issue of equity shares.

(D) Redemption of debentures.

2

J-08-12


:

1.

` 10,000,
` 70,000, ` 2,500,
` 500 ` 15,000 ,
?
(A) ` 65,000
(C)

2.

3.

(75)

III
-

` 68,000

(B)

4.

` 83,000

(D) ` 73,000

(2)

:
(i)


(ii)

(iii)

:

(A)

(B)

(A) (i) (ii)

(B)

(ii) (iii)

(C)

(C)

(i) (iii)

(D)

(D) (i), (ii) (iii)

?
(A)

(B)

(C)

(D)

J-08-12

5.

6.

Y 2 : 1
Z 1/3
X,
Y Z
?
X

(A) 3 : 3 : 3

(B)

(C)

(D) 2 : 3 : 4

4:2:3

4:3:2

?
(A)
(B)
(C)
(D)
Paper-III

7.

9.

Given below are two statements, one

labelled as Assertion (A) and the
other labelled as Reason (R) :
Assertion (A) : When a company
earns profit prior to its
incorporation, it is called
capital profit.
Reason (R) : Capital profit cannot
be used for distribution as
dividend to the shareholders.
In the context of the above two
statements, which one of the
following is correct ?
Codes :

Codes :
(a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (iii) (ii) (i) (iv)
(C) (iv) (iii) (i) (ii)
(D) (iii) (i) (iv) (ii)

(A) (A) is correct, but (R) is

wrong.
(B)

Both (A) and (R) are correct.

(C)

(A) is wrong, but (R) is

correct.

Match the items of List I with the

items of List II and select the
correct answer using the codes given
below the lists :
List I
List II
(a) Leverage
(i) Short-term
Ratio
solvency
(ii) Earning
(b) Liquidity
Ratio
capacity
(c) Turnover
(iii) Relationship
Ratio
between debt
and equity
(d) Profitability (iv) Efficiency of
Ratio
Asset
Management

(D) Both (A) and (R) are wrong.

10.
8.

Reconstruction of a company takes

place when
(i)

the
company
undercapitalised

is

(ii)

company has incurred heavy

losses which must be written
off

(iii) the company is overcapitalised

Which one of the following is
correct ?

Codes :
(A) (A) is correct, but (R) is
wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is
correct.
(D) Both (A) and (R) are wrong.

(A) (i) and (ii) only

(B)

(i) and (iii) only

(C)

(ii) and (iii) only

(D) All the above

Paper-III

Given below are two statements, one

labelled as Assertion (A) and the
other labelled as Reason (R) :
Assertion (A) : Sinking fund is a
charge against Profit and Loss
Account.
Reason (R) : Sinking fund is created
for repayment of a long term
liability.
In the context of the above two
statements, which one of the
following is correct ?

J-08-12

7.

,
(A) (R)
:

9.

(A) :
,

(R) :


,
?

I II

:
I
II
(a)
(i)
()

(b) (ii)
(c) (
(iii)
)

(d)
(iv)

:
(A) (A)

, (R)

(B)

(A) (R)

(C)

(A)

, (R)

(D) (A) (R)

8.

10.

(ii)

(iii)

(b)

(c)

(A)

(ii)

(i)

(iv) (iii)

(B)

(iii) (ii)

(i)

(iv)

(C)

(iv) (iii)

(i)

(ii)

(D) (iii)

(i)

(a)

(i)

(iv) (ii)

,
(A), (R)
:
(A) : -

(R) :


,
?
:

(A)

(i) (ii)

(B)

(i) (iii)

(B)

(A) (R)

(C)

(ii) (iii)

(C)

(A)

(D)

(D) (A) (R)

J-08-12

(A) (A)

(d)

, (R)

, (R)

Paper-III

11.

14.

Match List I with List II and

select the correct answer using the
codes given below the lists :
List I
List II
(a) Goodwill of (i) Current
a company
liability
(b) Overdraft
(ii) Fixed Assets
(c) Preliminary (iii) Reserves and
Expenses
Surplus
(d) Premium on (iv) Fictitious
Issue of
Assets
Shares
Codes :
(a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (i) (ii) (iv) (iii)
(C) (i) (ii) (iii) (iv)
(D) (ii) (i) (iii) (iv)

(A) Profits are understated

15.

(C)

Adequacy of funds
replacement of assets

for

Present value of future earnings is a

model
of
Human
Resources
Accounting suggested by
(B)

Jaggi & Lau

(C)

S.K. Chakraborty

(D) Eric Flamhaltz

In India, which of the following is

prepared on the guidelines of AS-3
(Accounting Standard 3) ?
(A) Balance Sheet of a Company
(B) Funds Flow Statement
(C) Cash Flow Statement
(D) Consolidated Financial
Statement

Which element of the promotion mix

do wholesalers generally apply to
obtain their promotional objective ?
(A) Advertising
(B)

Personal Selling

(C)

Trade Promotion

(D) Direct Marketing

What is the correct sequence of the

following actions required for the
preparation of financial accounts ?
(i) Trading accounts
(ii) Making adjusting entries
(iii) Balance Sheet
(iv) Profit and Loss Account
Select the correct answer from the
codes given below :
Codes :
(A) (iv), (ii), (i), (iii)
(B) (ii), (iv), (iii), (i)
(C) (ii), (i), (iv), (iii)
(D) (iv), (ii), (iii), (i)

Paper-III

Overstatement of Assets

(A) Brauch Lev & ABA Schwartz

17.
13.

(B)

(D) Erosion of capital

16.
12.

The main effect of inflation on the

financial statement is

Who has given fourteen Principles

of Management ?
(A) Barnard
(B)

Henry Fayol

(C)

F.W. Taylor

(D) Flemming
18.

What is M.B.O ?
(A) Management by Objective
(B)

Multiple Business Organisation

(C)

Management by Organisation

(D) Multiplicity
Operations
6

of

Business
J-08-12

11.

I II

:
I
II
(a) (i)
(b)
(ii)
(c) (iii)

(d) (iv)

:
(A)
(B)
(C)
(D)

(a)
(ii)
(i)
(i)
(ii)

(b)
(i)
(ii)
(ii)
(i)

(c)
(iv)
(iv)
(iii)
(iii)

, ..-3
( -3)
?
(A)
(B)
(C)
(D)

13.

?
(i)
(ii)
(iii)
(iv) -
:
:

J-08-12

(A)
(B)
(C)

(D)

15.

,
:
(A)
(B)
(C) ..
(D)

16.

?
(A)
(B)
(C)
(D)

17.

14

18.

... ?
(A)
(B)
(C)
(D)

(d)
(iii)
(iii)
(iv)
(iv)

12.

(A)
(B)
(C)
(D)

14.

(iv), (ii), (i), (iii)

(ii), (iv), (iii), (i)
(ii), (i), (iv), (iii)
(iv), (ii), (iii), (i)
7

?
(A)
(B)
(C) ..
(D)

Paper-III

19.

List I
I. Mega
Marketing
II. Penetration
Price
III. Promotion
Mix
IV. Customer
Satisfaction
Codes :
1
(A)
I
(B) III
(C) IV
(D) III
20.

22.

Match items in List II with items

in List I :

2
II
I
III
IV

(A) Offering the same products

and marketing mix to all
consumers.

List II
1. Advertising
2. Kotler
3. Low price

4
IV
IV
I
II

23.

Statement (A) : Sales promotion has

a strong impact on consumer
behaviour in rural India.
Reason (R) : Rural people in India
give utmost significance to
sales promotion schemes.

24.

Codes :
(A) Statement (A) is correct but
Reason (R) is incorrect.
(B) Statement (A) is incorrect, but
Reason (R) is correct.
(C) Both Statement (A) and
Reason (R) are correct.
(D) Both Statement (A) and
Reason (R) are incorrect.

25.

(C)

Offering
differentiated
products to all customers.

Which concept of marketing is based

on the assumption that superior
products sell themselves ?
(A) Production

(B)

(C)

(D) Product

Societal

Marketing

In
broader
sense,
communication includes

marketing

(A) Product

(B)

Price

(C)

(D) All

Place

Physical distribution provides

(B)

Time utility

(C)

Place and Time utility

(D) Form utility

Market sub-divided on the basis of

behavioural characteristics is called
(A) Segmentation
(B) Aggregation
(C) Precision
(D) None of the above

Paper-III

Offering variety of products to

the entire market.

(A) Place utility

26.
21.

(B)

(D) Following
concentrated
marketing strategy.

4. Post Purchase
Behaviour
3
III
II
II
I

What is mass marketing ?

What is relevant to place variable of

marketing mix ?
(A) Branding
(B)

Price penetration

(C)

Sales personnel motivation

(D) None
8

J-08-12

19.

20.

II I
:
I
II
I.
1.
II.
2.
III. 3.
IV. 4.

:
1

(A)

II

III

IV

(B)

III

II

IV

(C)

IV

III

II

(D)

III

IV

II

(A) :


(R) :

:
(A) (A)

, (R)

(B)

(A)

(C)

(A) (R)

23.

?
(A)
(B)
(C)
(D)

24.

,
?
(A)
(B)
(C)
(D)

25.

(A)
(B)
(C)
(D)

26.

?
(A)
(B)
(C)
(D)

?
(A)
(B)
(C)
(D)

J-08-12

() ?
(A)

(B)

(C) -

(D)

, (R)

(D) (A) (R)

21.

22.

Paper-III

27.

28.

29.

30.

31.

32.

Find incorrect statement :

(A) Marketers arouse emotional
motives
(B) Marketers satisfy rational
motives
(C) Marketers formulate different
sales promotions for different
motives
(D) None of the above
Non-store marketing includes
(A) Home selling
(B) V.P.P.
(C) Vending Machines
(D) All of the above
What is customer delight ?
(A) Performance
equal
expectation
(B) Performance
less
expectation
(C) Performance
more
expectation
(D) Expectation
more
performance

1.

Instructor Preparation

2.

Present the task

3.

Try out performance

4.

Training preparation

5.

Follow up

(A) 1, 2, 3, 4, 5
(B)

2, 1, 4, 3, 5

(C)

1, 4, 2, 3, 5

(D) 3, 1, 2, 5, 4

33.

to
than
than

Under which method of performance

appraisal one person is compared
with all others for the purpose of
placing them in a simple order of
work ?
(A) Grading

than

Which terms are often used interchangeably in marketing literature ?

(A) Concept, method, philosophy
(B) Concept, approach, technique
(C) Orientation,
concept,
philosophy
(D) Philosophy, system, concept

(B)

Person to Person comparison

(C)

Ranking

(D) None of the above

34.

Which one of the following is not

the fundamental procedure that
should be considered for the
collective bargaining ?
(A) Prenegotiation phase

Which one of the following is not

the operative function of HRM ?
(A) Development
(B) Controlling
(C) Compensation
(D) Integration

Paper-III

Which one of the following is not in

sequence of personnel training
procedure ?

(B)

Selection of Negotiators

(C)

Tactic and
Bargaining

Strategy

of

(D) None of the above

10

J-08-12

27.

28.

29.

30.

31.

:
(A)

(B)

(C)

(D)

32.

-
(A) -
(B) ...
(C)
(D)

1.

2.

3.

4.

5.

(A) 1, 2, 3, 4, 5
(B)

2, 1, 4, 3, 5

(C)

1, 4, 2, 3, 5

(D) 3, 1, 2, 5, 4

?
(A)
(B)
(C)
(D)

33.

:
?
(A) , ,
(B) , ,
(C) , ,
(D) , ,

34.

?
(A)
(B)
(C)
(D)

J-08-12

11

,


?
(A)

(B)

(C)

(D)

?
(A)

(B)

(C)

(D)

Paper-III

35.

Assertion (A) : Inevitably the firm

must go to the external sources
for lower entry jobs.

37.

Reason (R) : For positions where

required
qualification/
experience are not met.

Assertion (A) : Business Economics

is tool centrics facilitating
decision making in business.
Reason (R) : It provides an
analytical understanding of
economic activities.
Codes :

Codes :

(A) Both (A) and (R) are not

correct.

(A) Both (A) and (R) are not

correct.
(B)

(A) is true, but (R) is false.

(C)

(R) is true, but (A) is false.

(B)

Both (A) and (R) are correct.

(C)

(A) is true, but (R) is false.

(D) (R) is true, but (A) is false.

(D) Both (A) and (R) are correct.

38.
36.

(A) Quantity

Match the following items of List I

and List II :
List I

List II

1. Asbestos

I.

2. Benzene

II. Cancer

(B)

Price

(C)

Time

(D) All the above

Lung Cancer

39.

3. Ethylene
III. Leukemia
Disbromide
4. Kerosene

Demand has the following elements :

A perfectly competitive firm attains

equilibrium when
(A) AC = AR

IV. Acute
Nervous
System
Depression

(B)

MR = MC

(C)

MC = AC

(D) TC = TR

Codes :
40.

The purpose of job evaluation is

II

III

IV

(A)

(A) Fixation of Responsibility

(B)

(B)

Promotion

(C)

(C)

Wage Determination

(D)

(D) Transfer to a better job

Paper-III

12

J-08-12

35.

(A) :
:

37.

(R) :
/

(R) :

(A) (A) (R)

(A) (A) (R)

(B)

(A) (R)
(A)

(B)

(A)

, (R)

(C)

(C)

(R)

, (A)

(D) (R)

(D) (A) (R)

38.

36.

(A) :

I
:

II

II

I.

1.

II.

2.

III.

3.

IV.

4.

39.

II

III

IV

(A)

(B)

(C)

(D)

J-08-12

, (A)

:
(A)

(B)

(C)

(D)

40.

(B)

MR = MC

(C)

MC = AC

(D) TC = TR
I

, (R)

(A) AC = AR

(A)

(B)

(C)

(D)

13

Paper-III

41.

42.

43.

44.

45.

For testing of hypothesis H0 : M1 =

M2 and H1 : M1 < M2, the critical
value of Z at 5% level of
significance when size of sample is
more than 30 is
(A) 1.96
(B) 2.32
(C) 1.645
(D) 2.5758

46.

Which of the following is the nonrandom method of selecting samples

from a population ?
(A) Stratified Sampling
(B) Quota Sampling
(C) Systematic Sampling
(D) Cluster Sampling

47.

If the two regression coefficients are

0.8 and 0.2, then the value of
coefficient of correlation is
(A) + 0.16
(B) 0.40
(C) 0.16
(D) + 0.40

48.

Which one of the following is a

relative measure of dispersion ?
(A) Standard deviation
(B) Variance
(C) Coefficient of variation
(D) None of the above

49.

(A) BJP Government

(B)

Janta Government

(C)

Congress Government

(D) All of the above

Which one of the following is an
obstacle to globalisation ?
(A) Wide base
(B)

Niche markets

(C)

Obsolescence

(D) Competition

Assertion (A) : Internal factors of

business environment are
controllable factors.
Reason (R) : The company can alter
or modify such factors to suit
the environment.
Codes :
(A) Both (A) and (R) are correct.
(B) (A) is correct, but (R) is
incorrect.
(C) Both (A) and (R) are incorrect.
(D) (A) is incorrect.

Paper-III

The concept of Rolling Plan in

India was introduced by the

VSAT technology is first followed

for on-line trading by
(A) BSE

(B)

(C)

(D) ISE

NSE

OTCEI

Match the following :

List I

List II

Years

Act

(a) 1956

(i)

Consumer Protection
Act

(b) 1986

(ii) Indian Companies

Act

(c) 1992

(iii) Securities and

Exchange Board of
India

(d) 2002

(iv) Securitisation Act

Codes :

14

(a)

(b)

(c)

(d)

(A)

(ii)

(i)

(iii)

(iv)

(B)

(i)

(ii) (iii)

(iv)

(C)

(ii) (iii)

(D)

(i)

(i)

(iv)

(iv) (iii)

(ii)
J-08-12

41.

H0 : M1 = M2 H1 : M1 <
M2, ,
30 ,
5% Z
(A) 1.96
(C) 1.645

42.

43.

45.

?
(A)
(B)
(C)
(D)
: 0.8 0.2 ,

(B) 0.40
(D) + 0.40

?
(A)
(B)
(C)
(D)
(A) :


(R) :


:
(A) (A) (R)
(B)

(A)

(C)

(A) (R)

, (R)

(D) (A)
J-08-12

( )
?
(A) ...
(B)
(C)
(D)

47.

?
(A)
(B)
(C)
(D)

48.

-
?
(A)
(B)
(C)
(D)

49.

:
I
II

(a) 1956 (i)

(b) 1986 (ii)
(c) 1992 (iii)

(d) 2002 (iv)
:

(B) 2.32
(D) 2.5758

(A) + 0.16
(C) 0.16
44.

46.

15

(a)

(b)

(c)

(d)

(A)

(ii)

(i)

(iii)

(iv)

(B)
(C)

(i) (ii) (iii)

(ii) (iii) (i)

(iv)
(iv)

(D)

(i)

(ii)

(iv) (iii)

Paper-III

50.

51.

The flagship project of Government

of India launched for generating
guaranteed employment in rural
areas is known as
(A) PMRY

(B)

(C)

(D) NREP

JRY

54.

Which of the following is not

included in the assumptions on
which Myron Gordon proposed a
model on stock valuation ?
(A) Retained earnings, the only
source of financing
(B) Finite life of the firm
(C) Taxes do not exist
(D) Constant rate of return on
firms investment

55.

Match the following :

List I
(i) Factoring
(a)
services
(ii) Economic
(b)
Order
Quantity
(iii) Commercial (c)
paper
(d)

MNREGA

The conflicts in project ranking in

capital budgeting as per NPV and
IRR may arise because of
(A) Size disparity
(B)

Time disparity

(C)

Life disparity

(D) All the above

52.

The degree of financial leverage

reflects the responsiveness of
(A) Operating income to changes
in total revenue
(B)

EPS to changes in EBIT

(C)

EPS to
revenue

changes

in

Codes :
(i)
(A) (a)
(B) (c)
(C) (b)
(D) (b)

total

List II
Cash
Management
Receivable
Management
Inventory
Management
Working
Capital
Financing

(ii) (iii)
(c) (b)
(b) (a)
(c) (d)
(a) (c)

(D) None of the above

56.
53.

The overall capitalisation rate and

the cost of debt remain constant for
all degrees of financial leverage is
advocated by
(A) Traditional Approach
(B)

Net Income Approach

(C)

Net
Operating
Approach

Income

(D) M-M-Approach
Paper-III

16

Assertion (A) : International

business focuses on global
resources, opportunities to
buy/sell worldwide.
Reason (R) : The efforts of IMF,
World Bank and WTO to
liberalise their economies led
to globalisation.
Codes :
(A) Both (A) and (R) are true.
(B) Both (A) and (R) are false.
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
J-08-12

50.

?
(A)
(B)
(C)
(D)

54.

?
(A) ,

(B)
(C)
(D)

51.

?
(A)
(B)
(C)
(D)

55.

52.

/

:
(A)

(B)
(C)
(D)

:
I
II
(i) (a)

(ii)
(b)

(iii)
(c)
(d)

:

53.

(A)
(B)
(C)
(D)
56.

/
()

?
(A)
(B)
(C)
(D) -

J-08-12

17

(i)
(a)
(c)
(b)
(b)

(ii) (iii)
(c) (b)
(b) (a)
(c) (d)
(a) (c)

(A) :
/
,

(R) :
,


:
(A) (A) (R)
(B) (A) (R)
(C) (A) , (R)
(D) (A) , (R)
Paper-III

57.

60.

Match the items of List I with

items of List II :
List I

(B)

Revenue Account, P & L

Account, Capital Account,
Official Account

(iii) Expanding the 3. Advantages

production
of
capacities
International
Business

(C)

Trade
Account,
Activity
Account, Revenue Account,
Currency Account

(D) Forex
Account,
Trade
Account, Funds Account

4. Stage of
Globalisation

Codes :
(i)

61.
(ii) (iii)

(iv)

(A)

(B)

(C)

(D)

BRICS includes

(B)
(C)

Brazil, Russia,
Chile and Sudan

Codes :
(A) Both (A) and (R) are false.

Indonesia,

Brazil, Russia, India, China

and South Africa

62.
Out of the following, one is not
related with WTO :

(C)

TRIMS

(C)

(A) is true, but (R) is false.

The commercial banks do not

perform one function out of the
following :
(B)

Giving Loans and Advances

(C)

Issuing Currency Notes

(D) Financing Priority Sectors

(D) TRAI
Paper-III

Both (A) and (R) are true.

(A) Mobilisation of savings

(A) TRIPS
Ministerial Conference

(B)

(D) (R) is true, but (A) is false.

(D) Britain,
Russia,
India,
Czechoslovakia, Sri Lanka

(B)

Assertion (A) : International

Monetary Fund was set up in
1944.
Reason (R) :
To promote
international
monetary
cooperation
through
a
permanent institution which
provides
machinery
for
consultation and collaboration
on international monetary
problems.

(A) Bhutan, Romania, Indonesia,

Chile and South Korea

59.

includes

2. Goal of
International
Business

(iv) Geocentric
approach

58.

Payment

(A) Current
Account,
Capital
Account, Unilateral Payments
Accounts, Official Settlement
Account

List II

(i) Wider Market 1. Modes of

Entry
(ii) Turn key
Projects

Balance of
components

18

J-08-12

57.

I II
:
I
II
(i)
1.
(ii) 2.

(iii)
3.

(iv) 4.

:
(i)

(ii) (iii)

(iv)

(A)

(B)

(C)

(D)

58.

(BRICS)
(A) , , ,

(B) , , ,

(C) , , ,

(D) , , , ,

59.

...
:
(A)
(B)
(C)
(D)

J-08-12

19

60.

:
(A) , ,
,
(B) , - ,
,
(C) , ,
,
(D) , ,

61.

(A) : 1944

(R) :





:
(A) (A) (R)
(B) (A) (R)
(C) (A) , (R)
(D) (R) , (A)

62.

:
(A)
(B)
(C) /
(D)
Paper-III

63.

There are two lists of items, match

the items of List I with items of
List II :
List I
I.

67.

Which one is not the form of FDI ?

(A) Purchase of existing assets in
foreign currency
(B) New Investment in property,
plant, equipment
(C) Making investment in the
mutual funds
(D) Transfer of many types of
assets

68.

Match the items of List I with

items of List II :

Reserve Bank 1. NPA

of India

II. EXIM Bank

2. Facilitating
Small Scale
Industries

III. SIDBI

3. Credit Control

IV. Capital
Adequacy

4. Export/Import
Financing

II

III

IV

(A)

(B)

(C)

(D)

One of the items is not related with

e-banking :
(A) Demand Draft
(B)

SPNS

(C)

ECS

List I
1. Measures
towards
globalization
2. Off-shoring
3. FERA

(D) ATM
65.

Factoring and forfeiting have not

taken off in the Indian economy due
to lack of expertise and experience.
One is not included in the factoring
services rendered.
(A) Purchase of book debts and
receivables.
(B) Prepayment of debts partially
or fully
(C) Giving advice
(D) Covering the credit risk of the
suppliers

List II

Codes :

64.

66.

Assertion (A) : The Treasury

Manager uses the derivatives
in the Bond market as well as
in Forex market.

4. Mr. Aruthur
Dunkel
Codes :
1
2
(A) III
I
(B) II
I
(C) IV II
(D)
I
II

Reason (R) : It helps risk coverage.

Codes :
(A) Both (A) and (R) are false.
(B)

Both (A) and (R) are true.

(C)

(A) is true, but (R) is false.

(D) (R) is true, but (A) is false.

Paper-III

20

I.

List II
Globalisation

II. FEMA
III. Liberalise the
inflow of FDI
IV. Uruguay
Round
3
II
III
I
IV

4
IV
IV
III
III
J-08-12

63.

I II
:
I
II
I. 1.

II.
2.

III. 3.

IV.
4. /

:
(A)
(B)
(C)
(D)

64.

65.

I
1
4
2
3

II
2
3
3
4

III
3
2
4
2

,


:
(A)

(B) :

(C)
(D)

67.

?
(A)

(B) , ,
(C)
(D)

68.

I
:

IV
4
1
1
1

-
:
(A)
(B)
(C)
(D)

1.
2.

(A) :


(R) :

:
(A) (A) (R)
(B) (A) (R)
(C) (A) , (R)
(D) (R) , (A)

J-08-12

66.

3.

4.

I.

II

II

( )
III.
:

IV.
II.

:
(A)
(B)
(C)
(D)
21

1
III
II
IV
I

2
I
I
II
II

3
II
III
I
IV

4
IV
IV
III
III
Paper-III

69.

73.

Which one of the following is not

the advantage of MNCs to the host
country ?
(A) Increase in social activity

(A) Stock in trade

(B)

Increase in economic activity

(B)

Goodwill of business

(C)

Utilisation of natural resources

(C)

Agricultural Land in Delhi

(D) R & D efforts enhanced

70.

(D) Jewellery

India suffered from deficit balance

both in trade balance and net
invisibles, hence, took up a number
of steps to manage this problem.
Which one is not appropriate for this ?

74.

(B)

Current Account Convertibility

(C)

Liberalised Export Policy

(D) Unified Exchange Rate

72.

Match the items of List I with

List II :
List I

(A) Export control

71.

Which of the following is not a

capital asset under capital gains head
of income ?

List II

I. Tax
Planning

1. Making suitable
arrangement of
TDS

II. Tax
Avoidance

2. Understatement
of Income

III. Tax Evasion 3. Availing

deduction
under Section
10A of IT Act.

Mr. James, a citizen of U.S., arrived

in India for the first time on 1st July,
2010 and left for Nepal on 15th
December 2010. He arrived to India
again on 1st January 2011 and stayed
till the end of the financial year
2010-11. His residential status for
the assessment year 2011-12 is

IV. Tax Admini- 4. Misinterpreting

stration
the provisions
of the IT Act
Codes :
I

II

III

IV

(A) Resident (ordinarily resident)

(A)

(B)

Not ordinarily resident

(B)

(C)

Non-resident

(C)

(D) None of the above

(D)

The value of free accommodation in

Delhi provided by employer in the
private sector is

75.

Under the Income Tax Act, 1961

unabsorbed depreciation can be
carried forward for set-off purpose :

(A) 10% of salary

(A) For 4 years

(B)

15% of salary

(B)

For 5 years

(C)

20% of salary

(C)

For 8 years

(D) 25% of salary

Paper-III

(D) For unspecified period

22

J-08-12

69.

?
(A)
(B)
(C)
(D)

73.

?
(A)
(B)
(C)
(D)

70.

/
, ,


?
(A)
(B)
(C)
(D)

74.

71.

, .. , 1,
2010 15
2010
1, 2011
2010-11
2011-12

(A) ( )
(B)
(C)
(D)

I II
:
I
II
I.
1.

II.
2.

III.
3.
10


IV.
4.

72.

(A)
(B)
(C)
(D)
75.

:
(A) 10%
(B) 15%
(C) 20%
(D) 25%

J-08-12

23

I
2
1
3
4

II
1
4
4
1

III
4
3
2
3

IV
3
2
1
2

, 1961
, ,
:
(A) 4
(B) 5
(C) 8
(D)
Paper-III

Space For Rough Work

Paper-III

24

J-08-12