Question 1

Which of the following statement is/are correct?

Options :

A : Only (i)

B : Only (ii)

C : Both of the above

D : None of the above

Answer: C

Question 2

Dinesh is entitled to a basic salary of Rs. 5,000 p.m. and dearness allowance of “Rs. 1,000 per month, 40% of which forms the part of the retirement benefits. He is also entitled to HRA of Rs. 2,000 p.m. He actually pays Rs. 2,000 p.m. as rent for a house in Delhi. Compute the taxable HRA

Options :

A : Rs. 17,520

B : Rs. 32,400

C : Rs. 18,000

D : Rs. 24,000

Answer: A

Question 3

Mr. Dinesh is aged 35 years and has a wife aged 30 years old and two small children. His parents are also dependent on him and has a house against which he has taken a housing loan. What is the most important insurance cover required by him at this stage?

Options :

A : Income Protection Cover and Life Insurance Cover

B : Life Insurance Cover and Mortgage Cover

C : Accident policy Cover and Critical Illness cover

D : Child education Cover

Answer: B

Question 4

Under flexible exchange rates a small open economy should

Options :

A : lose control of its monetary policy

B : be insulated from its trading partners' inflation

C : tend to experience the inflation of its trading partners

D : find that changes in its interest rates match changes in its trading partner-s interest rates

Answer: B

Question 5

Mixed economy refers to.....

Options :

A :

Where both the public and private sector play a dominant role in the running of the country’s economy.

B :

Where economic decision and inputs are made by the free trading market

C :

Where economic decisions and inputs are made by the government through economic planning .

D :

All of the above

Answer: A