MCQOPTIONS
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MCQOPTIONS
This section includes 2956 Mcqs, each offering curated multiple-choice questions to sharpen your UPSC IAS Exam knowledge and support exam preparation. Choose a topic below to get started.
| 1851. |
Which among the following is First Indian Special Economic Zone (SEZ)? |
| A. | Visakhapatnam SEZ |
| B. | Kandla SEZ |
| C. | Noida Special Economic Zone |
| D. | Cochin |
| Answer» C. Noida Special Economic Zone | |
| 1852. |
In Playback Period approach to risk the target payback period is |
| A. | Not adjusted, |
| B. | Adjusted upward, |
| C. | Adjusted downward , |
| D. | (b) or c |
| Answer» D. (b) or c | |
| 1853. |
Risk in Capital budgeting implies that the decision-maker knows___________of thecash flows. |
| A. | Variability, |
| B. | Probability, |
| C. | Certainty, |
| D. | None of the above |
| Answer» C. Certainty, | |
| 1854. |
The costs those which neither contributes to function nor the appearance of theproduct is called |
| A. | Extra cost |
| B. | Unnecessary cost |
| C. | Esteem cost |
| D. | Exchange cost |
| Answer» C. Esteem cost | |
| 1855. |
Value analysis examines the |
| A. | Design of every component |
| B. | Method of manufacturing |
| C. | Material used |
| D. | All of the above |
| Answer» E. | |
| 1856. |
The Break-even Point of a company is that level of sales income which will equal thesum of its fixed cost. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1857. |
Value is the cost directly proportionate to |
| A. | Price |
| B. | Function |
| C. | Product Material |
| D. | All of the above |
| Answer» C. Product Material | |
| 1858. |
_____ has/have accepted cash flow statement is more useful than funds flow statement, particularly from view of analysis of liquidity of a firm. |
| A. | Institute Of Chartered Accountants of India |
| B. | FASB, America |
| C. | SEBI |
| D. | All of the above |
| Answer» E. | |
| 1859. |
In CE Approach, the CE Factors for different years are: |
| A. | Generally increasing, |
| B. | Generally decreasing, |
| C. | Generally same, |
| D. | None of the above |
| Answer» C. Generally same, | |
| 1860. |
Capital market line is: |
| A. | Capital allocation line of a market portfolio |
| B. | Capital allocation line of a risk free asset |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 1861. |
In Certainty-equivalent approach, adjusted cash flows are discounted at: |
| A. | Accounting Rate of Return, |
| B. | Internal Rate of Return, |
| C. | Hurdle Rate, |
| D. | Risk-free Rate |
| Answer» E. | |
| 1862. |
Which of the following statements are false? A) Cash Flow Statement is helpful in the formation of policies. B) Cash Flow Statement is useful for external analysis C) Cash Flow Statement is helpful in estimating future cash flow |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both B and C |
| D. | None of the above |
| Answer» E. | |
| 1863. |
How inflation affects the price of the commodities? |
| A. | Price of the commodities decreases |
| B. | Price of the commodities increases |
| C. | No effect |
| D. | First the price decreases later on increases |
| Answer» C. No effect | |
| 1864. |
Which of the following concept is just opposite to deflation? |
| A. | Stagflation |
| B. | Inflation |
| C. | Recession |
| D. | Disinflation |
| Answer» E. | |
| 1865. |
Determine Contribution if Fixed cost is Rs 50,000 and loss is Rs 20,000. |
| A. | Rs 60,000 |
| B. | Rs 70,000 |
| C. | Rs 30,000 |
| D. | None of the above |
| Answer» D. None of the above | |
| 1866. |
If the nominal rate of interest is 10% per annum and there is quarterlycompounding, the effective rate of interest will be: |
| A. | 10% per annum |
| B. | 10.10 per annum |
| C. | 10.25%per annum |
| D. | 10.38% per annum |
| Answer» E. | |
| 1867. |
Break-even analysis is used in “Make or Buy” decision. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1868. |
The cost reduction technique in comparison to the worth of a product is known as |
| A. | Reverse engineering |
| B. | Value engineering |
| C. | Material engineering |
| D. | Quality engineering |
| Answer» C. Material engineering | |
| 1869. |
Value analysis is a ____ process |
| A. | Remedial |
| B. | Preventive |
| C. | Continuous |
| D. | None of the above |
| Answer» B. Preventive | |
| 1870. |
Who is named as Father of Value Analysis? |
| A. | Lawrence D. Miles |
| B. | George Terborgh |
| C. | Michael Jucius |
| D. | Edwin B. Flippo |
| Answer» B. George Terborgh | |
| 1871. |
Which element of the basic NPV equation is adjusted by the RADR? |
| A. | Denominator, |
| B. | Numerator, |
| C. | Both, |
| D. | None |
| Answer» B. Numerator, | |
| 1872. |
Important reason(s) for arising unnecessary costs are |
| A. | Poor design of product |
| B. | Too tight specifications |
| C. | Lack of standardization |
| D. | All of the above |
| Answer» E. | |
| 1873. |
Relationship between annual nominal rate of interest and annual effective rate of interest, if frequency of compounding is greater than one: |
| A. | Effective rate > Nominal rate |
| B. | Effective rate < Nominal rate |
| C. | Effective rate = Nominal rate |
| D. | None of the above |
| Answer» B. Effective rate < Nominal rate | |
| 1874. |
Time value of money supports the comparison of cash flows recorded at different time period by |
| A. | Discounting all cash flows to a common point of time |
| B. | Compounding all cash flows to a common point of time |
| C. | Using either a or b |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 1875. |
The P/V ratio can be improved by |
| A. | Decreasing the selling price per unit |
| B. | Increasing variable cost |
| C. | Changing the sales mix |
| D. | None of the above |
| Answer» D. None of the above | |
| 1876. |
Contribution and profit both are same concepts. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 1877. |
Most Sensitive variable as given by the Sensitivity Analysis should be: |
| A. | Ignored, |
| B. | Given Least important, |
| C. | Given the maximum importance, |
| D. | None of the above |
| Answer» D. None of the above | |
| 1878. |
Pick up the ratio which gives us sufficient information by which to judge thefinancial condition and performance of the firm, from the following: |
| A. | Liquidity ratio |
| B. | Financial leverage ratio |
| C. | Activity ratio |
| D. | None of these |
| Answer» E. | |
| 1879. |
The point of tangency between risk return indifferences curves and efficient frontier highlights: |
| A. | Optimal portfolio |
| B. | Efficient portfolio |
| C. | Sub-optimal portfolio |
| D. | None of the above |
| Answer» D. None of the above | |
| 1880. |
Given selling price is Rs 20 per unit, variable cost is Rs 16 per unit contribution is |
| A. | Rs 1.25 per unit |
| B. | Rs 4 per unit |
| C. | Rs 0.8 per unit |
| D. | None of the above |
| Answer» C. Rs 0.8 per unit | |
| 1881. |
In Risk-Adjusted Discount Rate method, the normal rate of discount is: |
| A. | Increased, |
| B. | Decreased, |
| C. | Unchanged, |
| D. | None of the above |
| Answer» B. Decreased, | |
| 1882. |
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost eachyear over a period of’ 'n’ years, the total cost of maintenance is: |
| A. | a + (n + 1) b |
| B. | a + (n - 1) b |
| C. | a × (n - 1) b |
| D. | a - (n - 1) b |
| Answer» C. a × (n - 1) b | |
| 1883. |
The cost incurred by the manufacturer beyond use value is called |
| A. | Cost value |
| B. | Esteem value |
| C. | Exchange value |
| D. | None of the above |
| Answer» C. Exchange value | |
| 1884. |
Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%. |
| A. | Rs 60,000 |
| B. | Rs 70,000 |
| C. | Rs 30,000 |
| D. | None of the above |
| Answer» B. Rs 70,000 | |
| 1885. |
Which of the following is a risk factor in capital budgeting? |
| A. | Industry specific risk factors, |
| B. | Competition risk factors, |
| C. | Project specific risk factors, |
| D. | All of the above |
| Answer» E. | |
| 1886. |
The term marginal cost can be used as a substitute of variable cost while measuringContribution. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1887. |
A portfolio having two risky securities can be turned risk less if |
| A. | The securities are completely positively correlated |
| B. | If the correlation ranges between zero and one |
| C. | The securities are completely negatively correlated |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 1888. |
Which of the following statements are true? A) Cash flow statement is more useful for short term cash planning. B) Funds Flow statement is more useful in planning medium term and long term financing. C) Cash Flow statement discloses the position of liquidity in a better way |
| A. | Only A |
| B. | Only B |
| C. | Only C |
| D. | A, B and C |
| Answer» E. | |
| 1889. |
Which of the following is correct for RADR? |
| A. | Accept a project if NPV at RADR is negative, |
| B. | Accept a project if IRR is more than RADR |
| C. | RADR is overall cost of capital plus risk-premium , |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 1890. |
Cash Flow Statement studies causes of change in working capital. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 1891. |
Statement of changes in working capital is prepared separately in |
| A. | Cash Flow Statement |
| B. | Funds Flow Statement |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 1892. |
If nominal rate of return is 10% per annum and annual effective rate of interest is10.25% per annum, determine the frequency of compounding: |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | None of the above |
| Answer» C. 3 | |
| 1893. |
Contribution is also known as |
| A. | Contribution margin |
| B. | Net Margin |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Net Margin | |
| 1894. |
Which of the following measure is adopted to reduce inflation? |
| A. | Reduction in bank rate |
| B. | Reduction in Repo rate |
| C. | Increase in government expenditure |
| D. | Cuts in government spending |
| Answer» D. Cuts in government spending | |
| 1895. |
Value can be defined as the combination of _______ which ensures the ultimate economy and satisfaction of the customer. |
| A. | Efficiency, quality, service and price |
| B. | Efficiency, quality, service and size |
| C. | Economy, quality, service and price |
| D. | Efficiency, material, service and price |
| Answer» B. Efficiency, quality, service and size | |
| 1896. |
If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the numberof periods in years, the compound amount factor (CAF) is: |
| A. | (1 + i)n |
| B. | (1 + i)(1/2n) |
| C. | v(n + i) |
| D. | None of these |
| Answer» B. (1 + i)(1/2n) | |
| 1897. |
Efficient frontier comprises of |
| A. | Portfolios that have negatively correlated securities |
| B. | Portfolios that have positively correlated securities |
| C. | Inefficient portfolios |
| D. | Efficient portfolios |
| Answer» E. | |
| 1898. |
Determine total as well as per unit contribution if Sales is Rs 40,000, Sales in units is4,000 and variable cost is Rs 30,000. |
| A. | Rs 10,000 and Rs 2.5 |
| B. | Rs 70,000 and Rs 3.5 |
| C. | Rs 36,000 and Rs 3.6 |
| D. | None of the above |
| Answer» B. Rs 70,000 and Rs 3.5 | |
| 1899. |
Return on any financial asset consists of capital yield and current yield. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 1900. |
Decision-tree approach is used in: |
| A. | Proposals with longer life, |
| B. | Sequential decisions, |
| C. | Independent Cashflows, |
| D. | Accept-Reject Proposal |
| Answer» C. Independent Cashflows, | |