1.

Calculate broad money M3

Currency with public- Rs 100000
Demand deposit with banking sys-Rs 200000
Other deposit with RBI- Rs 200000
Savings deposit of post office savings banks- Rs40000
Time deposits with banking sys-Rs 200000
All deposit with post office banking sys in cluding Rs 40000 of NSC total-Rs 100000
a) Rs 500000
b) Rs 700000
c) Rs 800000
d) Rs 900000
Ans: b
Solution-M3 =m1+time deposit with banking system
So M1=currency with public+ demand deposit with the bankingsys+other deposits with rbi
M1=100000+200000+200000
M1=500000
Than m3=500000+200000
Ans m3=700000
2. Qtn how much m4 will be from above qtn

a) Rs 700000

B) Rs 740000

c) Rs 760000

D) Rs 80000

Ans :c

M4=m3 + all deposit with post officesavings banks( excluding National savings certificates)

m3 is rs 700000 from above qtn

since total deposit with po is Rs100000 out of it Rs 40000 in NSC so Rs100000-40000= Rs 60000

M4=700000+60000

M4=760000

3. Calculate Inflation of Abc company as price index in current year is RS 120lakh and price index
in base year is Rs 100 lakh.

a)20

b)1.2
 c).2

d)200

e) non of these

ans : a ABM- 31
solutions : inflations
=( pirce index in current year-price index in base year)/ (price index in base year) * 100
= (12000000-10000000)/10000000*100
= 2000000/10000000 *100
= 02*100
= 20

4. data of country z co. is as follows all data are in million in Indian rupees

a) consumptions : Rs 10000

b)gross investment : Rs 20000

c)govt spending : Rs 30000

d) Export : Rs 80000

e) Import : Rs 60000

f) taxes : Rs 2000

g) subsidies : RS 100

(on production and import)

h) Compensation of employee: Rs 200

i) Property Income : Rs 300

( net receivable from aboard)

j)total capital gains from from : Rs 1100

overseas investment

k) Income earned by foreign : Rs 500

national domestically

QTN i) calculate GDP

a) Rs 60000
 b) Rs64000
c) Rs62000
e) Rs 61000
Ans: c
Solutions ABM-83page
GDP=C+I+G+(X-M)
=10000+20000+30000+(8000-6000)
=62000
4 .QTN ii) calculate GNP..from qtn no 4 i)
a) Rs 62000

B) Rs 60600

c)Rs 62200

d) Rs 62600

ans : d
GNP=GDP+ NR (total capital gains from Overseas investment-income earn by foreign national
domestically)
= 62000+ (1100-500)
=62600

4. iii) Calculate GDP at cost factor

a) Rs 62000
b) Rs 62100
c) Rs 60100
d) Rs 62100
Ans : c
Solutions: GDP at factor rate
=GDP at market prices-(Indirect taxes-subsidies)
=62000-(2000-100)
=60100
4) iv) calculate GNI.
a) Rs 62000
b) Rs 62400
c) Rs 64300
d) Rs 64400
Ans: D
Solutions : gross national income

=GDP at market prices+taxes less subsidies on production and import( Net receivable
from abroad)+compensation of employee(Net receivable from abroad) property income (
Net receivable from Abroad)
 =62000+(2000-100)+200+300
=64400

5. Data of a A to Z co. is as follows all currency million in Indian rupees.

Corporation tax : Rs 200

Income tax : Rs 300
Other taxes and duties :RS 100
Customs : RS 100
Union exercise tax : Rs 200
Service tax Rs 300
Tax of union territories : Rs 100
Interst receipt : Rs 300
Devident & profit : Rs 2000
External grant : Rs 100
Other non tax revenue : Rs 1000
Receipt of union territories : Rs 500
Trf to NCCD (National calamity : Rs 100
Contingency fund)
States Share : Rs 300
5 Qtn i) calculate Net Tax revenue of A to Z co.
a) Rs 1300
b) Rs 900
c) Rs 1200
d) Rs 1000
Ans : b
Solutions: Net Tex Revenue
=Gross tax revenue- NCCD transferred to the National Calamity Contingency fund- state share
Gross tax revenue = Corporation Tax+ Income tax+other tax & duties+costoms+union excise
duties+service Tax+ taxes on union territories
=200+300+100+100+200+300+100
Gross Tax Rrvenue=1300
=1300-100-300
=900
Qtn5 ii) Calculate total Revenue Receipt of A to Z country..
a) Rs 4000
b) Rs 4800
c) Rs 4500
d) Rs 4200
Ans:b Rs 4800
Total revnue receipt
=Net Tax revenue+total non tax revenue
Calculate first NTR=GTR-NCCD-State share
 Already calcluted in previous qtn i.e Rs 900

Total Non tax revenue=interst receipt+Dividend & profit+External grants+other Non-Tax

revenue+Receipt of union territories=300+2000+100+1000+500
=3900
Hence Net tax revenue=900+3900
=4800

06. data of abc country.

Recoveries of loan & advance Rs 1000

recoveries of short term loans and advances Rs300

from states and loans to govt servents

Misc capital receipt Rs 200

Market loans Rs 300

Short term borrowings Rs 500

External assistance (Net) Rs 200

Securities issued against small savings Rs 200

State provident fund Rs 100

Other receipts (Net) Rs 400

Total non tax revenue Rs 3000

Net tax revenue Rs 1000

Draw down cash balance Rs 2000

@total revenue receipt=net tax revenue+Total non tax revenue

6 a) calculate capital receipt

A) Rs 1200
B) Rs 900
C) Rs 2600
D) Rs 1700
Ans: c
Capital receipt =Non debit receipt+Debt receipt
First calculate NDR=Recoveries of loan& advances(duduct recoveries of short term loans & advance
from state and loans to govt sarvents)+MISC Capital receipts
=1000(-300)+200
NDR=900
 Than Debt receipt= market loans+Short term borrowings+External assistance(NET)+Securities issued
3against Small savings+other Receipts(Net)
=300+500+200+200+100+400
=1700
Capital receipt=900+1700
=2600
6 b). calculate total receipt..
a) Rs 4600
b) Rs 4900
c) Rs 8000
d) Rs 8600
Ans is :d Rs 8600

@total revenue receipt=net tax revenue+Total non tax revenue

Total recepipt=Total Revenue receipt+capital receipt+drawdown of cash bal

=(3000+1000)+2600+2000
=8600

6 c) calculate financing of fiscal deficit

a) Rs 2000
b) Rs 3700
c) Rs 2400
d) Rs 4600
Ans : b
solution
Financing of fisical deficit=Debt receipt+Dwar-down of cash bal
Debt receipt= market loans+Short term borrowings+External assistance(NET)+Securities issued
3against Small savings+other Receipts(Net)
=300+500+200+200+100+400=1700
Financing of fisical defict=1700+2000
=3700

MODULE-B

7. Mr ram wants to have Rs 20000 after a year how much he should deposit in a bank to get this
amount if the prevailing rate of interest is 9% p.a.

a) 17896

b)18104

c)18224
d)18348

ans : d 20000/1.09

8. Mr Amit purchased a property for Rs 8 lac . he has been assured to get Rs 10 lac, after one year at 9%
interest rate. What is the net present value of the poperty based on this assured return.

a) Rs. 117400

b)Rs. 118300

c) Rs. 119200

d) Rs. 120100

Ans : a 1000000/1.09=917431-80000= 117400

9. Mr Raj decided to deposited Rs. 5000 ( at end of the year) for 10 yr . how much amt he will get if the
interest rate of is 5% p.a.

a)62890

b)62980

c)68920

d)69820

all value in Rs.

Formula future value end of the period annuties

Ans: a Fv=a/r (1+r)n-1 =5000/.05(1.05)10-1=62890

10. . MR. ram sons is expected to join a professionnal course in 03 yr from now and he would be
needing a sum of Rs 3lac at that time as admission fee. Mr Ram wants to save the amt in annual instalments
and prevailing interest rates are 5% How much amt he should deposit per annum.

a)95163

b)95631

c)953631

d)96531

Ans: A

Thus annuity given the future value =FV*r/(1+r)n-1 =300000*.05/(1.05)3-1=

95177 Appox
11. worked out the discount factor for Re 1 to be received at the end of two yr with prevalent 8% .

a)0.890

b)0.873

c)0.857

D)0.842

Ans: c =1/(1+r)n= 1/(1.08)square2

12.An investment at 10% is compounded monthly, what shall be the effect interst rate for this.

A)10%

b)10.25%

c)10.47%

d)10.5156%

ans: c =(1+.10/12) sqare 12-1

semi annually devide by 2

monthly devide by 12

for daily by 365

continuous equare 10-1

13.A console bond of Rs 10000 is issued at 6%Coupon current interst rates and 9%. Find out the current
value of the console bond .

a)7660

b)6760

c)6670

d)6706

And :c = 10000*.06=6000/.09=6670

14 please explain this as it was asked in last time caiib exams

Q A bag contains 7 yellow balls and 5 red balls. One ball is taken from the bag at random and is
not replaced. A second ball is taken from the bag. Determine the probability that

Q-1 What is Probability of both balls are red....

1) 42/132 2) 20/132 3) 21/132 4) 35/132
 Q-2 What is Probability of both balls are the same colour.
1) 42/132 2) 20/132 3) 62/132 4) 70/132

Q-3 What is Probability of both the balls are different colours.

1) 42/132 2) 20/132 3) 21/132 4) 70/132

Q-4 What is Probability of at least one ball is yellow.

Solutions:-1) 120/132 2) 112/132 3) 70/132 4) 35/132.Chat Conversation En

Hitesh Kothari q-1 20/132 , Q2 62/132, q3 70/132, q4 112/132

Q 15 If debt equity ratio of a unit is 2:1, current Liabilities are Rs. 8 Lakh, equity Rs. 4 Lakh, the
total assets of the firm will be...?

As equity z givn debt vl b 8 lacs so total assets= debt +equity +c.liab i.e 8+4+8

Q 16 Total asstes of a company are Rs. 200 lakh. Debt Equity Ratio is 2:1 and current liabilities are
Rs. 56 Lakh. Equity of the company will be....?

ans Total long term liab z 144 so equity z 1/3rd

q 17 If current Ratio of a unitis 1.25:1, current assets are 5 Lakh, quick ratio is 1:1 Presuming there
are noprepaid exp, inventry will be...?

Ans 500000/1.25 (quick ratio=ca-inv/cl

Ans :10000

Q 18 Current Ratio is 2:5:1 and current assets are Rs. 30 Lakh. NWC will be.....? calculate howTop of
Form

Ans;18 lacs. 24 lacs c.a. & 6 lacs cl 24_6=18 lacs nwc

19 Qtn 91 days treasury bills maturing on 06.04.2013 purchased on 18-02-2013 rate quoted is Rs
99.1489 per Rs 100 this yield of ths T bill is
a)6.8%
b)4.90%
c)5.70%
d) none of the above

please also explain your ans

100-99.14/99.14*365/remain days(47 or 48)

ans is 6.98 APROX

20. How many years it will take under rule 72 for an investment to become quadruple In
value , if th ROI is 12%.

a) 6 year

b) 12 year

c) 16 year

d) 20 year

ans: 12

21. What is the easiestway to calculate value of any investment will become half, if inflation
rate is 7% the value will become half in how many year.(under rule 70)

a) 6 year

b) 10 year

c) 12 year

d) 16 year ans: b under rule 70

22. 6% coupon rate of bond of rs 1000 what will be the amount we will get after 03 year if
compounded return is 5.6%.

a) 1010.77

b) 1010.91

c) 1177.58

d) 1237.58

e) Non of these ans : a

23. 6% coupon rate of bond of rs 1000 what will be the amount we will get after 03 year if
the coupon payment become half yearly than, compounded return is 5.6% only

a) 1010.77

b) 1010.91

c) 1177.58

d) 1237.58

e) Non of these ans: b

24. Mr. X is expecting a cash flow of Rs 10 lac at the end of 01 year for his investment of
Rs 8 lac in a housing property , at 08% discount rate what is the Net present value.

a) 92592

b) 125926

c) 740740

d) 125926

e) None of these

ans: d ( present value 100000/108= 925926 than NPV= PV- investment =925926-800000=
125926 ans

25. bonds and debentures are an example of

a) term loan

b) lump-sum payment loan

c) balloon repayment laon

d) interest demand laon

e) non of these ans:c

26. A constant flow paid or recived at aregular intervals for ever is known as.

a) annuity

b) peretuity

c) growing annuity

d) growing perpetuity ans: b

27. what is present value of Rs 180000 which is paid every year over a period assuming the rate
of interest at 12%

a) 64860

b)646880

c) 648860

d) 684860

e) non of these
ans: c 9 pv=A((1+r)power n -1))/r(1+r)power n= 180000(1+.12)power 5- 1/.12(1+.12)power 5=
137221/.2114=648860

28. On 8%, 5 year bond of Rs 10000, the investors gets annually as..

A) 80 int

b) 80 coupon

c) 800 discount

d) 800 coupon ans: d

29. regular repayment in the from of interst on a bond is called

a) discount

b) interst

c) coupon

d) dividend

e) installment

f) EMI ans: c

30. depending upon the current interest rates ,the face value of which of the following types of
bonds changes .

a).floating rate bonds

b) negotiable bonds

c) Zero coupon bonds

d) convertible bonds ans: b