Practice Exercise 5

Directions (Q. 1-5): Refer to the charts below and answer the questions that follow.
Figure (i)

Figure (ii)

Total custom ers = 1350000

AT&T
Idea 8%
9%

BPL
20%

Dolphin
15%

Orange
13%

K
KUNDAN
Airtel
17%

Reliance
18%

Figure (iii)

4
3

Orange

BPL

Dolphin

Airtel

10

Reliance

Figure (i) shows share of various telecom companies in Indian market.

Figure (ii) shows % of pre-paid and post-paid customers of various plans of various companies.
Figure (iii) shows average number of SMS sent in a day (x-axis) by customers and its cost in Rs (yaxis).
1. What is the ratio of the number of BPL pre-paid plan 2 customers to the number of Idea post-paid
plan C customers?
1) 9 : 10
2) 10 : 9
3) 40 : 9
4) 9 : 40
2. Which of the following is true?
I. The total income of Airtel through SMS in a day is Rs 33 lakhs.
II. The number of Dolphin pre-paid plan 1 customers is equal to that of AT&T post-paid plan C
customers.
III. The amount collected by Reliance through SMS is greater than that by Orange, in a week.
IV. The number of Orange post-paid customers is equal to the number of Idea pre-paid customers.
1) Only I
2) Only I and III
3) Only II and IV
4) Only I, III and IV
3. What is the difference between the number of BPL post-paid plan A customers and that of Idea pre-

paid plan 3 customers?

1) 0.79 lakh
2) 0.87 lakh
3) 0.95 lakh
4) 1.13 lakhs
4. Orange and BPL pre-paid customers send 4 SMS in a day. Then what is the approximate ratio of
the incomes of Orange and BPL from SMS service given to post-paid customers?
1) 1 : 2
2) 2 : 3
3) 1 : 3
4) 2 : 5
5. Reliance announced an attractive offer for pre-paid customers and 20% of BPL post-paid customers accepted this new offer. Then what would be the ratio of the numbers of pre-paid and post-paid
customers for Reliance?
1) 5 : 13
2) 5 : 7
3) 7 : 9
4) 7 : 13
Directions (Q. 6-10): Refer to the bar-graphs below and answer the questins that follow.
Movement of share prices of four companies in five trading sessions and the volumes on these
sessions.
Share Price
70
65

Goetze

Raasi Cement

Kesoram Cement

Tata Telecom

K
N KUNDAN
(Rs.)

60
55
50
45
40
35

31.7.97

1.8.97

4.8.97

5.8.97

6.8.97

Volumes

20000

(Units)

18000
16000
14000
12000
10000

8000

31.7.97
Goetze

1.8.97
Raasi Cement

4.8.97

5.8.97

Kesoram Cement

6-8.97

T ata T elecom

6. Which of the following scrips shows the highest increase in the share price between 31/7 and 6/
8 and by how much?
1) Goetze 9.5
2) Raasi 11
3) Tata Telecom 7
4) Kesoram 10
7. Which of the following scrips clocks the highest turnover on 31/7?
(Turnover = Volume Share price)
1) Goetze
2) Raasi
3) Kesoram
4) Tata Telecom
8. Which of the following sets of scrips has shown an increase in volumes from 31/7 to 6/8?
1) Goetze, Raasi
2) Raasi, Kesoram
3) Kesoram, Goetze
4) Raasi, Tata Telecom
9. What is the percentage change in the turnover of Tata Telecom from 31/7 to 6/8?
1) -5%
2) -9%
3) 5%
4) 9%

10. The price of which of the following scrips shows the highest percentage increase from 31/7 to 6/
8?
1) Goetze
2) Raasi
3) Kesoram
4) Tata Telecom
Directions (Q. 11-15): Refer to the pie-charts below and answer the questions that follow.
YEAR 1999-2000
BREAK-UP OF NATIONAL INCOME AND NATIONAL EXPENDITURE
RUPEE EARNED
Agriculture
23%

RUPEE SPENT
Indus trial
develo pment
14%

External
bo rro wings
9%

Internal
borro wings
17%

Adminis tratio n
23%

Debt
s ervicing
8%

Direct taxes
18%

Defence
11%
Others
12%

K
KUNDAN
Excis e
21%

11. If debt service ratio =

Cus to ms
12%

Agriculture
32%

debt servicing cost

, by what percentage should agricultural income rise

national income
(keeping all other incomes constant) so as to bring the debt-service ratio to 7.5% ?
1) 7%
2) 29%
3) 40%
4) 125%
12. If it is known that out of total external borrowings, 65% is spent on industrial development, 28%
on defence, and the rest on debt servicing, then what is the component of foreign finance in
industrial development? (Assume rupees earned = rupees spent)
1) 74%
2) 53%
3) 42%
4) 27%
13. If the total collection by way of direct taxes in 1999-2000 was estimated at Rs 123,000 million, how
much extra money was pumped into the agricultural sector during 1999-2000? (Assume rupees
earned = rupees spent)
1) Rs 20,000 million 2) Rs 47,000 million
3) Rs 61,500 million 4) Rs 72,000 million
14. If the internal borrowings are to be decreased by 50% , by what per cent should the rupee earned
from other resources be increased if external borrowings cannot be increased?
1) 14.5%
2) 20%
3) 30%
4) 17%
15. If the sectoral allocation is to change so that our country spends as much on industrial development as on agriculture (with total spending on industrial development and agriculture remaining
the same), then the allocation of agricultural sector should reduce by approximately
1) 28.13%
2) 17%
3) 36%
4) 28%

Answers and explanations

1. 2;

Number of BPL prepaid plan 2 customers

0.2 0.1

10

0.09 0.2
9
Number of Idea postpaid plan C customers
2. 2; Number of Airtel customers = 0.17 1850000
Total income of Airtel through SMS = 7 1.5 0.17 1850000 33,00,000
Statement I is true.

Percentage of Dolphin pre-paid plan 1 customers = 15 0.15 = 2.25%

Percentage of AT&T post-paid plan C customers = 8 0.15 = 1.2%
Statement II is false.
Amount collected by Reliance through SMS in a week (A) = 0.18 1850000 1 8 7
Amount collected by Orange through SMS in a week (B) = 0.13 1850000 1.5 3 7
A > B Statement III is true.
Percentage of Orange post-paid customers = 0.13 40 = 5.2% .
Percentage of Idea pre-paid customers = 0.09 40 = 3.6%
Statement IV is false.
3. 4; Number of BPL post-paid A customers = 0.2 0.35 1850000
Number of IDEA pre-paid plan 3 customers = 0.09 0.1 1850000
Difference = (0.07 - 0.009) 1850000 = 0.061 1850000 1.13 lakhs.
4. 1; Orange and BPL pre-paid customers send 4 SMS in a day.
Average number of SMS sent in a day by Orange post-paid customers =

Averate number of SMS sent in a day by BPL post-paid customers =

3 100 4 60
40

6 100 4 30

1.5

48

K
N KUNDAN
70

Income from Orange post - paid customers

15
. 15
. 13 40 13 90 39 1

= 48
Income from BPL post - paid customers
2400
80 2
2.5 20 70
7
5. 3; In overall customer base, percentage of Reliance pre-paid customers = 18 0.35 = 6.3%
Percentage of Reliance post-paid customers = 18 0.65 = 11.7%
Increase in Reliance pre-paid customers in terms of percentage of overall customer base

= 20

6. 2;
7. 2;

8. 3;
9. 3;

70

20

2.8%
100 100
New percentage of Reliance prepaid customers = 6.3 + 2.8 = 9.1%
91
.
7
.
Ratio =
11.7 9
By observation, Raasi Cement shows the highest increase in the share price.
By observation, it is either Tata or Raasi.
Tatas turnover = 20,000 42 = Rs 840,000
Raasis turnover = 15,000 58 = Rs 870,000
Hence, Raasis turnover is highest on 31/7.
By observation, it is Goetze and Kesoram.
Tatas turnover on 31/7 was Rs 840,000. On 6/8, it was 49 18,000 = Rs 882,000.

882000 840000

5%
840000
10. 3; By observation, it is either Raasi or Kesoram.

Percentage change =

69 58

19%
58
50 415
.
20%
For Kesoram, % increase =
415
.
Debt servicing cost
11. 2; Debt service ratio =
National Income

For Raasi, % increase =

To bring down the ratio from 8% to 7.5% , national income must rise by

8
7.5

16

100 6.67%
15
15
All other income except Agriculture remains constant.

ie

times, ie by

6.67

100 29%
23
12. 3; External borrowing = 9% of resources available.
65% of external borrowings spent on industrial development

Agricultural income should rise by

65

9% 5.85% of total resources.

100
Assuming the budget to be a zero-deficit one, ie rupee earned - rupee spent = 0, we find the
proportion of foreign finance (external borrowings) in industrial development

5.85

100 42% .
14
13. 3; Again, assuming a zero-deficit budget, 18% of rupee earned = 123,000 million.

K
KUNDAN

Extra money pumped = 32% - 23% = 9% , which is

18

123,000 = Rs 61,500 million..

14. 1; Internal borrowings are decreased by 50% .

Internal borrowings = 0.5 17 = 8.5
External borrowings cannot be increased.

8.5

100 = 14.5%
74
15. 1; Total spend on agriculture and industry = 32 + 14 = 46%
If total spendings on industry and agriculture are the same then 23% will be spent on each.
Rupee earned by other resources should increase by

Required reduction =

32

100 2813%
.