Higher Secondary School Teacher Commerce 339/17 Answer Key 47/2018

money

Post : Higher Secondary School Teacher Commerce
Department : Kerala Higher secondary Education
Category Code : 339/17
Qualification : Master's Degree / B.Ed Degree in Commerce
Question Paper Code : 47/18
Date of Test : 09-04-2018


If you find mistakes, comment below



  1. The requirement to hedge against a fall in stock prices by using futures of another stock is
    • A long hedge in the other stock futures
    • A short hedge in the other stock futures
    • Finding a cross hedge ratio using a beta approach
    • Either way the pay-off is the same

  2. The second important function of management is
    • Organising
    • Staffing
    • Directing
    • Controlling
    Question Error

  3. PAYE is with respect to
    • Advance payment of income tax
    • Tax planning
    • Tax evasion
    • Tax avoidance

  4. The promising operating ratio is
    • 25%
    • 50%
    • 75%
    • 80%
    Question Error

  5. The criterion to judge the performance of a mutual fund is
    • NPV
    • NAV
    • Dividend paid
    • Sensex

  6. The Dormant company concept was introduced by ___________ of the Companies’ Act 2013.
    • Section 455
    • Section 450
    • Section 444
    • Section 405

  7. Who did develop the abandonment stage in the PLC?
    • N.H. Borden
    • Theodore Levitt
    • William J. Standon
    • Philip Kotler
    Question Error

  8. Take out financing is a kind of
    • Lease financing
    • Bank financing
    • Hire purchase financing
    • Merchant banking

  9. The most appropriate definition of market is
    • The place where products are exchanged
    • The time when products are exchanged
    • Effective contact between the buyer and seller
    • The level of satisfaction of the seller

  10. Puffer or a Decoy Duck is one who is employed by
    • The GST council of India to pin down the high net worth pesos
    • The auctioneer to raise the price by making fictitious bids
    • The Trade Tax department to check trade tax evasion
    • The Income Tax department to check tax evasion

  11. If stock price is ₹30, present value of exercise price is ₹25 and the call price is ₹6, the respective put should be
    • ₹1
    • ₹1.66
    • ₹1.83
    • Data not sufficient

  12. In which of the IR approaches, the mutual negotiations and collective bargaining between the management and labourers has to be followed to settle the industrial disputes?
    • The unitary approach
    • The Gandhian approach
    • The Marxian approach
    • The Giri approach
    Question Error

  13. What is the co-efficient of relative elasticity?
    • e > 1
    • e < 1
    • e = 1
    • e = 0

  14. The budget estimates of Sitharam Co. Ltd. for the year 2009 – 2010 are as follows : Sales (unit) : ₹15,000; Fixed expenses : ₹34,000; Sales : ₹1,50,000 and variable cost : ₹6 per unit. What is the revised margin of safety, if the selling price is decreased by 10%?
    • ₹33,000
    • ₹33,003
    • ₹33,050
    • ₹33,060

  15. _______ is the study that considers aggregate behaviour and the study of sum of individual economic decisions.
    • Macro economics
    • Micro economics
    • Normative economics
    • Positive economics

  16. As per which Section of the Income Tax Act, the total income is rounded off to the nearest multiple of ₹10?
    • 287 B
    • 287 C
    • 288 B
    • 288 C
    Question Error

  17. Which industry is the second largest provider of employment in India after agriculture?
    • Iron and steel
    • Transports
    • Chemicals
    • Textiles

  18. The following data give an analyst’s expected return on two stocks for particular market returns :
    Market Return - 6%; Aggressive Stock - 2%; Defensive Stock - 8%
    Market Return - 20; Aggressive Stock - 30; Defensive Stock - 16
    What are the betas of the two stocks?
    • 2 and 0.571
    • 2.5 and 0.571
    • 2 and 5.71
    • None of these

  19. If the mean of a binomial distribution is 4 and variance is 3, the number of items in the distribution is
    • 10
    • 12
    • 16
    • 09

  20. X and Y are partners who share the profit and loss in the ratio of 2 : 3. Z is admitted into the partnership. Z brings ₹ 6,000 in cash and his share of goodwill. They have decided to change the profit and loss sharing ratio into 4:5:6 for X, Y and Z respectively. How will the goodwill be distributed at the time of admission of Z?
    • Credit X’s capital a/c by ₹2,000; Credit Y’s capital a/c by ₹4,000
    • Credit X’s capital a/c by ₹4,000; Credit Y’s capital a/c by ₹2,000
    • Credit Y’s capital a/c by ₹6,000
    • Credit X’s capital a/c by ₹6,000

  21. The (1 – p) in the Binomial valuation model is
    • Derived from the p that is computed
    • The risk-free rate of return
    • Always higher than p
    • Both "The risk-free rate of return " and "Always higher than p"

  22. When the materials are priced at the value that is realizable at the time of issue, such pricing method is called
    • HIFO
    • Standard price method
    • Weighted average method
    • Replacement method

  23. Which among the following is the basic drive that gives the urge to take up a certain type of career?
    • Career path
    • Career goal
    • Career anchor
    • Career progression

  24. If a person fails to furnish a report from an accountant relating to his international transactions, penalty of _______ shall be imposed.
    • ₹1,00,000
    • ₹2,00,000
    • ₹3,00,000
    • ₹4,00,000

  25. While calculating the income tax, interest on securities held by local authority is
    • Fully taxable
    • Partially taxable
    • Considered only for rate purposes
    • Fully exempt

  26. IDBI bank is
    • Development bank in the Government sector
    • Commercial bank in the Government sector
    • Commercial bank in the private sector
    • Development bank in the private sector

  27. If two samples of size 9 and 11 have means 6 and 8.8, and variances 36 and 25 respectively, then value of ‘t’ is
    • 0.148
    • 1.83
    • 0.81
    • None of these

  28. The NSS is better means of investment because of
    • Tax deferment
    • High rate of interest
    • Liquidity
    • None of these

  29. Lead time refers to
    • The time the finished goods lie as inventories
    • The period in which a whole lot of inventory is consumed
    • The time gap between placing of the order and procuring the materials
    • The work in progress time

  30. A barrier call has a knock-out value of ₹85/-. What is the impact if the stock reaches this value?
    • The call is immediately exercisable
    • There is no call
    • The exercise price is deemed to be ₹85/-
    • Cannot say

  31. Which of the following is correct about co-efficient of correlation?
    • r = 1
    • r < 1
    • r = 0
    • All of these

  32. What is the wage payable to Mr. Raman under the Halsey plan if he completes the work by 15 hours against the standard time of 20 hours? Assume an hourly rate of ₹4/-
    • ₹66.66
    • ₹70.00
    • ₹73.50
    • ₹80.00

  33. Which of the following theories was developed by Edwin Locke?
    • Carrot and Stick theory
    • Equity theory
    • Decision theory
    • Goal setting theory

  34. What is the stock price in real options valuation applying the Black Scholes model?
    • The pessimistic price of the asset as per today’s estimation
    • The optimistic price of the asset as per today’s estimation
    • The price of the asset as per expected value today
    • None of these

  35. The demand curve of conspicuous goods is
    • Downward sloping
    • Upward sloping
    • Parallel to the X axis
    • Parallel to the Y axis

  36. The Indian company gets income tax deduction for contribution to a political party under Section
    • 80 G
    • 80 GG
    • 80 GGA
    • 80 GGB

  37. Which five year plan did recognize the integral link between rapid economic growth and the quality of the mass of the people?
    • 7th plan
    • 8th plan
    • 9th plan
    • 10th plan

  38. CBCT stands for
    • Customer Bank Credit Terminal
    • Commercial Banking Credit Terminal
    • Commercial Bank Communication Terminal
    • Customer Bank Communication Terminal

  39. The report of cost audit is furnished to the
    • Shareholders
    • Management
    • Central Government
    • State Government

  40. The difference between the initial capital outlay and the total present value of stream of cash flow of a given rate of discount is called
    • NPV
    • IRR
    • ARR
    • NWC

  41. In a distribution which is exactly normal, 7% of the items are under 35 and 89% are under 6. What is the standard deviation of distribution?
    • 13.50
    • 10.35
    • 0.135
    • Information not sufficient

  42. In perfect competition, the AR and MR curves are
    • Same and parallel to the X axis
    • Same and parallel to the Y axis
    • Different and the AR curve is below to the MR curve
    • Different and the MR curve is below to the AR curve

  43. Which theory of wages is called “Iron Law Wages”?
    • Wages fund theory
    • Subsistence theory
    • Surplus value theory
    • Bargaining theory

  44. The interval between two AGMs of a company should not be more than
    • 12 months
    • 15 months
    • 18 months
    • 20 months

  45. The relationship between equity capital and long term debt is known as
    • Capital gearing
    • Capital budgeting
    • Financial leverage
    • Trading on equity

  46. What would be the market price if the next year’s dividend is 20%, required rate of return is 10% and the growth rate is 15% as per the constant growth model?
    • ₹55
    • ₹50
    • ₹45
    • ₹40

  47. In exchange, which floating is generally received by a bank?
    • TRS
    • CDS
    • CDO
    • All of these
    Question Error

  48. When a monopolist divides the market into two or more groups and charges different prices from each group, it is called price discrimination of ______ order.
    • First
    • Second
    • Third
    • Fourth

  49. In which way the estimated losses that can be foreseen for a contract is treated?
    • Ignore until they are known to be accurate with reasonable certainty
    • Write-off in the same proportion as any estimated profits are recognized
    • Write-off only if the work to which they belong is complete by 50%
    • Write-off immediately when they are estimated

  50. In process cost computations, the cost of ending work in progress inventory is calculated on
    • The total costs to account for schedule
    • The quantities schedule
    • The computation of equivalent production
    • None of these

  51. Company X Ltd. has a β of 1.5. The expected return is 15% and the risk-free rate of interest is 5%. What is the market return?
    • 6.67%
    • 8.33%
    • 8.66%
    • 12.33%

  52. The distinction between joint products and by-products is largely dependent upon
    • The point of split off of each product
    • The market value of the product
    • The differential cost of each product
    • The management’s discretion

  53. The standard overheads are determined on the basis of
    • Standard output
    • Budgeted output
    • Actual output
    • Production capacity

  54. Hike in the bank rate
    • Keeps both cost of credit and demand for money constant
    • Increases the cost of credit and increases the demand for money
    • Decreases the cost of credit and increases the demand for money
    • Increases the cost of credit and decreases the demand for money

  55. If the probability of getting head is 0.4, what is the probability of getting two heads of a coin when it is tossed three times?
    • 0.288
    • 0.024
    • 0.248
    • 0.096

  56. The T-Bill futures are bought for a hedge during a period when
    • The interest rates cannot be predicted
    • The interest rates are likely to be stable
    • The interest rates are likely to come down
    • All of these

  57. An ROP would be attached to a
    • Simplex channel
    • Duplex channel
    • Full duplex channel
    • Half duplex channel

  58. Purchasing of shares with funds borrowed from broker is
    • Domestic trading
    • Margin trading
    • Option dealing
    • Foreign trading

  59. Size of critical region is known as
    • Size of the test
    • Size of the type I Error
    • Size of the type II Error
    • Critical value of the test statistics

  60. The Black – Scholes option pricing theory is based on the following assumption
    • There is cyclical change in interest rates
    • The stock pays regular dividends
    • The stock price movement is taken to be random
    • The call option can be exercised any time during its life period

  61. Pools and Cartels are forms of
    • Amalgamation
    • Partnership
    • Federation
    • Joint ventures

  62. Anonymous donations are taxable under _________ of the income tax.
    • Section 114 BBB
    • Section 115 BBB
    • Section 114 BBC
    • Section 115 BBC

  63. Insurable interest should exist at the time of enrolment itself in
    • Life insurance
    • Fire insurance
    • Marine Insurance
    • All of these

  64. Which bonus plan is increased along with the increase in the efficiency?
    • Accelerated premium plan
    • Barth variable bonus plan
    • Gnatt’s task bonus plan
    • None of these

  65. MRP stands for
    • Management Resource Planning
    • Management Research Planning
    • Material Requirement Planning
    • Material Resource Planning

  66. Which of the following TCP/IP protocol is used for remote connection service?
    • TELNET
    • FTP
    • RARP
    • None of these

  67. The concept of reciprocal demand was introduced by
    • Louis Blank
    • Schmoller
    • J.B. Say
    • J.S. Mill

  68. The origin of merchant banking was in
    • 12th century
    • 13th century
    • 14th century
    • 15th century

  69. Hawthrone studies are related to which stage of organizational behavior evolution?
    • Industrial revolution
    • Scientific management
    • Functional management
    • None of these

  70. Allocation of resource to the States is the primary duty of
    • The NITI Ayog
    • The Finance Commission
    • The RBI
    • The Pay Commission

  71. A group of verbal and non verbal behavior used to prove the effectiveness of teaching is called as
    • Teaching attitude
    • Teaching aptitude
    • Teaching skill
    • Teaching ability

  72. An evaluation tool which involves a coherent set of criteria for students’ work with description of levels of performance is known as
    • Rubrics
    • Journaling
    • Portfolio
    • Matrix

  73. The specific competency of a teacher who achieve educational objectives through meaningful interaction between teachers, pupils and the environment by using different approaches in an integrated and effective manner
    • Transactional competency
    • Contextual competency
    • Content competency
    • Conceptual competency

  74. An instructional aid that allows computer images to be displayed into a board using a digital projector is
    • LCD projector
    • DLP projector
    • Interactive whiteboard
    • Opaque projector

  75. When teacher plan a lesson, the first priority is given to
    • The content to be taught
    • The objectives to be achieved
    • The group to be taught
    • The tasks to be presented

  76. The sampling technique in which the population is categorized in to a number of non-overlapping sub populations and sample items are selected from each category is called as
    • Stratified sampling
    • Systematic sampling
    • Cluster sampling
    • Quota sampling

  77. The most significant scientific research method is
    • Normative survey method
    • Experimental method
    • Case study method
    • Historical method

  78. The scale of measurement which has an absolute zero measurement is termed as
    • Interval scale
    • Ratio scale
    • Nominal scale
    • Ordinal scale

  79. Converting someone else’s ideas into your own words is called
    • Quote
    • Copy
    • Paraphrase
    • Summarize

  80. The following one is least significant with regard to ethical principles of social science research.
    • Professional competence
    • Integrity
    • Scientific responsibility
    • Personal morale

  81. In the opinion of Dr. B.R. Ambedkar which Article can be called as the heart and soul of our Constitution?
    • Art. 19
    • Art. 21
    • Art. 22
    • Art. 32

  82. In which year fundamental duties are inserted in our Constitution?
    • 1950
    • 1976
    • 1979
    • 1985

  83. The size of the council of ministers was determined by which Amendment?
    • 85th
    • 44th
    • 91st
    • 92nd

  84. Which Article gave power to the union Govt. to legislate on any list during to period of National emergency?
    • Art. 249
    • Art. 250
    • Art. 252
    • Art. 256

  85. 24th Amendment Act of Indian Constitution passed in which year?
    • 1971
    • 1976
    • 1978
    • 1979

  86. The Environment Protection Act 1986 came in to force on
    • 22-3-1986
    • 19-11-1986
    • 24-8-1986
    • 28-4-1986

  87. The sexual harassment of women at work place (Prevention, Prohibition and Redressal) Act came in to force in which year?
    • 2012
    • 2013
    • 2014
    • 2015

  88. The MGNREGA is to be implemented mainly by
    • Grama Sabha
    • Grama Panchayath
    • Block Panchayath
    • District Panchayath

  89. SC and ST (Prevention of Atrocities) Act enacted in the year
    • 1989
    • 1990
    • 1986
    • 1988

  90. The THO Act was passed in India in the year
    • 1993
    • 1999
    • 1995
    • 1994

  91. Who among the following was a member of Cochin Legislative Council for a period of three years?
    • Barrister G.P. Pillai
    • C. Krishnan
    • Moorkoth Kumaran
    • Pandit K.P. Karuppan

  92. What was the motto of the Malabar Economic Union founded by Dr. Palpu?
    • Industry through confidence
    • Thrive through industry
    • Profit through industry
    • Industry through union

  93. ‘Sadhujan Dootan’ is associated with
    • Ayyan Kali
    • K.P. Vellon
    • Pampadi John Joseph
    • Kumara Guru

  94. Who published the weekly ‘Dharma Poshini’?
    • Dr. Ayyathan Gopalan
    • Velukkutty Arayan
    • T.K. Madhavan
    • C.V. Kunjuraman

  95. ‘Veenapoovu’ written by Kumaran Asan was first published in
    • Mithavadi
    • Vivekodayam
    • Prabhatham
    • Swadeshabhimani

  96. The Mughal emperor who introduced ‘Jharoka Darshan’?
    • Humayun
    • Babur
    • Akbar
    • Shahjahan

  97. Who wrote the book ‘The Last Moghul’?
    • William Dalrymple
    • Ramachandra Guha
    • Amartya Sen
    • Perry Andersen

  98. Which country formally hands over Hambantota port to China on a 99 year lease?
    • Sri Lanka
    • South Korea
    • Indonesia
    • Singapore

  99. India’s first National Rail and Transportation University will be set up at
    • Chennai
    • Hyderabad
    • Nagpur
    • Vadodara

  100. The recipient of Nobel Prize for Economics in the year 2017
    • Jeffrey C. Hall
    • Richard H. Thaler
    • Rainer Weiss
    • George Saunders

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