2013 June UGC NET Solved Question Paper in Commerce Paper 2

1. Direct supervision over depositories and mutual funds is undertaken by




(D) All of the above

Answer: (C)


2. In the call/notice money market, which of the following participants is allowed to trade?

(A) All Banks, Primary Dealers and Mutual Funds

(B) All Corporates

(C) Only Commercial Banks

(D) All of the above

Answer: (C)


3. Match the items of List-I with the items of List-II and select the correct answer:

List – I                                                                                                            List – II

(i) Private ownership and Free Enterprise.                                                      (a) Secondary Market

(ii) Government ownership and Central Authority.                                        (b) Capitalism

(iii) The market for the sale and purchase of previously issued securities.     (c) Primary Market

(iv) The market for new long term capital.                                                     (d) Socialism


       (i) (ii) (iii) (iv)

(A) (b) (d) (a) (c)

(B) (a) (b) (c) (d)

(C) (b) (d) (c) (a)

(D) (a) (c) (b) (d)

Answer: (A)


4. The apex consumer court in India is referred to as

(A) The Consumer Education and Research Centre.

(B) The Consumer Unity and Trust Society.

(C) National Consumer Disputes Redressal Commission.

(D) None of the above

Answer: (C)


5. Who is Chairman of 13th Finance Commission?

(A) Dr. C. Rangarajan

(B) Mr. Vimal Jalan

(C) Dr. Vijay C. Kelkar

(D) None of the above

Answer: (C)


6. Insurance expenses paid to bring an equipment from the place of purchase to the place of installation isa type of

(A) Revenue expenditure

(B) Capital expenditure

(C) Deferred revenue expenditure

(D) Operating expense

Answer: (B)


7. ABC Ltd was incorporated with an authorised Share Capital of Rs. 1, 00,000 equity shares of Rs. 10 each. The Board of Directors of the company decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd.?

(A) Promoters’ Account

(B) Services Account

(C) Goodwill Account

(D) Share Capital Account

Answer: (C)


8. In a reconstruction scheme, the reduction of capital may take the form of

(A) Reducing the liability of the shareholders in respect of any unpaid amount on the shares held by them.

(B) Paying-off any paid-up share capital which is in excess of its requirement.

(C) Cancelling any paid-up share capital which is lost or unrepresented by available assets.

(D) All of the above.

Answer: (D)


9. While determining the normal rate of return for the valuation of shares in Market Value Method, which of the following should be taken into consideration?

(A) The degree of risk involved.

(B) The current rate of interest on gilt-edged securities.

(C) Weighted average cost of capital.

(D) All of the above.

Answer: (D)


10. Master budget is a

(A) Functional Budget

(B) Operating Budget

(C) Summary Budget

(D) Financial Budget

Answer: (C)www.netugc.com

11. Assertion (A): Want-satisfying power of a commodity is called its utility.

Reason (R): Utility may not have the characteristic of morality.


(A) Both (A) and (R) are correct.

(B) (A) is correct, but (R) is not correct.

(C) Both (A) and (R) are not correct.

(D) (R) is correct, but (A) is not correct.

Answer: (A)


12. Match the items of List-I with those in List-II and select the correct code for the answer:

List – I                                                List – II

(a) Contraction of Demand                 (i) Non-Price change effect

(b) Decrease in Demand                     (ii) Demand curve remains the same

(c) Increase in Demand                       (iii) Price change effect

(d) Expansion of Demand                  (iv) Shifts the Demand curve


       (a) (b) (c) (d)

(A) (iii) (i) (iv) (ii)

(B) (iv) (iii) (ii) (i)

(C) (i) (ii) (iii) (iv)

(D) (ii) (iv) (i) (iii)

Answer: (A)


13. Assertion (A): As the proportion of one variable factor in a combination with fixed factor is increased, after a point the marginal product of the factor will diminish.

Reason (R): Beyond the level of optimum combination of inputs leads to this.


(A) (R) is appropriate reason of (A).

(B) (R) is not appropriate reason of (A).

(C) (A) and (R) are not related with each other.

(D) (A) is independent of (R).

Answer: (A)


14. Match the items of List-I with the items of List-II and select the correct answer.

List – I                                    List – II

(a) Indifference Curve            (i) Slopes downward to the right

(b) Demand Curve                  (ii) P=AR=MR=d

(c) Perfect Competition          (iii) Oligopoly

(d) Price Leadership                (iv) Convex to the origin


       (a) (b) (c) (d)

(A) (ii) (iii) (iv) (i)

(B) (iii) (iv) (i) (ii)

(C) (iv) (i) (ii) (iii)

(D) (i) (ii) (iii) (iv)

Answer: (C)


15. Price, Marginal Revenue and Elasticity are related to each other. When e = 1, then:

(A) MR > 0

(B) MR < 0

(C) MR = 0

(D) MR = 1

Answer: (C)


16. Consider the following statistical tests:

(i) ‘F’ test

(ii) ‘t’ test

(iii) ‘z’ test

(iv) ‘Chi-square’ test

Which of these are parametric tests?

(A) (i), (ii) and (iv)

(B) (i), (iii) and (iv)

(C) (i), (ii) and (iii)

(D) (ii), (iii) and (iv)

Answer: (C)


17. The difference between sample statistic and its corresponding population parameter is

(A) Sampling error

(B) Measurement error

(C) Coverage error

(D) Non-response error

Answer: (A)


18. Match the items in List-I with items in List-II.

List – I                                                                                                            List – II

(i) Level of significance                                                                                  (a) Sample mean is equal to population mean

(ii) Standard deviation of sampling distribution                                             (b) Parameters

(iii) Numerical value that describes the characteristic cs of the population    (c) Type-I error

(iv) Normally distributed population                                                              (d) Standard error


       (i) (ii) (iii) (iv)

(A) (d) (c) (a) (b)

(B) (c) (d) (b) (a)

(C) (c) (b) (d) (a)

(D) (d) (b) (c) (a)

Answer: (B)


19. Kendall’s co-efficient of concordance is used to

(A) Test the difference among two or more sets of data.

(B) Test the relationship between variables.www.netugc.com

(C) Test the variations in the given data.

(D) Test the randomness of samples.

Answer: (B)


20. Which of the following softwares are used for data processing?



(iii) SPSS

(iv) STAR

(v) PASW


(A) (i), (ii), (iii) and (v)

(B) (ii), (iii), (iv) and (v)

(C) (iii) and (iv)

(D) (i), (iii) and (iv)

Answer: (A)

21. Match the items of List-I with the items of List-II and select the correct answer.

List – I                        List – II

(i) Grapevine               (a) Taskgroup

(ii) Formal group         (b) Field force theory

(iii) Informal group     (c) Gossip

(iv) Kurt Lewin           (d) National group


       (i) (ii) (iii) (iv)

(A) (c) (a) (d) (b)

(B) (d) (c) (b) (a)

(C) (a) (b) (c) (d)

(D) (b) (a) (d) (c)

Answer: (A)


22. Who has suggested that achievement motivation among individuals and nations can be developed through training courses?

(A) MeClelland

(B) Alderfer

(C) Maslow

(D) Herzberg

Answer: (No option is correct)


23. Assertion (A): When span of control is wide co-ordination and control becomes difficult.

Reason (R): In a narrow span, levels of authority reduce.


(A) Both (A) and (R) are true and (R) is the correct explanation of (A).

(B) Both (A) and (R) are true, but (R) is not a correct explanation of (A).

(C) (A) is true, but (R) is false.

(D) (A) is false, but (R) is true.

Answer: (C)


24. The general pattern of behaviour, shared belief and values that members have in common is known as

(A) Organisation climate

(B) Organisation culture

(C) Organisation effectiveness

(D) Organisation matrix

Answer: (B)


25. Which of the following is not a principle of management according to Henri Fayol?

(A) Subordination of individual interest over the organisational interest

(B) Esprit de corps.

(C) Unity of Managers

(D) Unity of Direction

Answer: (C)


26. Which of the following concepts is based on development, design and implementation of marketing programmes, processes and activities that recognise their breadth and interdependence?

(A) Product concept

(B) Sales concept

(C) Societal marketing concept

(D) Holistic marketing concept

Answer: (D)


27. The concept of marketing-mix, consisting of the 4 P’s of marketing, was developed by

(A) E. Jerome McCarthy

(B) Peter F. Drucker

(C) Philip Kotler

(D) William J. Stonton

Answer: (A)


28. The selling concept is most likely to be used by firms which sell

(A) Convenience goods

(B) Shopping goods

(C) Speciality goods

(D) Unsought goods

Answer: (D)


29. Match the items of List-I with those of List-II and select the correct answer from the codes given below:

List – I                                                            List – II

(a) Everitt M. Rogers                                      (i) Service Quality Model

(b) J.D. Power                                                 (ii) Three types of marketing for services

(c) Parasuraman, Zeithaml and Berry             (iii) Quality rating of automobiles

(d) Gronroos                                                   (iv) Diffusion of innovation


       (a) (b) (c) (d)

(A) (iii) (ii) (i) (iv)

(B) (i) (ii) (iii) (iv)

(C) (ii) (i) (iv) (iii)www.netugc.com

(D) (iv) (iii) (i) (ii)

Answer: (D)


30. Consumer attitudes and beliefs about diet, health and nutrition are influenced by

(A) Economic environment

(B) Cultural environment

(C) Social environment

(D) Natural environment

Answer: (B)


31. Positive NPV in project appraised by a firm may not occur an account of

(A) Economics of scale

(B) Market reach

(C) Product differentiation

(D) Intangible benefits

Answer: (D)


32. In case the projects are divisible under capital rationing an appropriate project appraisal method is

(A) Net Present Value Method

(B) Profitability Index Method

(C) Internal Rate of Return Method

(D) Payback Period Method

Answer: (B)


33. Permanent working capital is generally financed through

(A) Long term Capital Funds

(B) Government Assistance

(C) Internal Financing

(D) Short term loans from Banks

Answer: (A)


34. The appropriate ratio for indicating liquidity crisis is

(A) Operating ratio

(B) Sales turnover ratio

(C) Current ratio

(D) Acid test ratio

Answer: (D)


35. Who proposed a model to apply economic order quantity concept of inventory management to determine the optimum cash holding in a firm?

(A) Keith V. Smith

(B) Miller and Orr

(C) William J. Baumol

(D) J.M. Keynes

Answer: (C)


36. Which of the following is not included in the model of the systems approach to Human Resource Management?

(A) Human Resource Planning

(B) Recruitment and Selection

(C) Performance appraisal

(D) Depart mentation

Answer: (D)


37. It is generally easy to measure the performance of the

(A) Industrial Relations Manger

(B) Research and Development Manager

(C) Sales person

(D) All of the above

Answer: (C)


38. Which one of the following is not a monetary incentive to sales people?

(A) Bonus

(B) Staff meeting

(C) Travelling allowance

(D) Both (B) and (C)

Answer: (D)


39. Statement (i): Sound industrial relations are essential to achieve individual, team goals and organizational goals.

Statement (ii): Congenial labour management relations create an atmosphere of harmony and low rate of absenteeism.

(A) Statement (i) is true, but (ii) is false.

(B) Statement (ii) is true, but (i) is false.

(C) Both statements are true.

(D) Both statements are false.

Answer: (C)


40. Out of the following, which are the schemes of Social Security?

(i) Provident Fund Scheme

(ii) Health Insurance Scheme

(iii) Job Guarantee Scheme

(iv) Maternity Benefit Scheme

(v) Merit Promotion Scheme

(vi) Compulsory and Voluntary Social Insurance Scheme

(vii) Child Insurance Scheme


(A) (i), (ii), (iv) and (vi)

(B) (ii), (i), (v) and (vii)

(C) (iii), (v), (iv) and (vi)

(D) (iv), (vii), (iii) and (ii)

Answer: (A)


41. RBI ensures that banks operate within the set norms by conducting ______ inspections and _______ monitoring.

(A) On site, off site

(B) Off site, on site

(C) On site, field

(D) Field, on site

Answer: (A)


42. Under Section 37 of the Banking (Regulation) Act, a moratorium order can be issued by the High Court for a maximum total period of

(A) One month

(B) Six months

(C) One year

(D) One and a half year

Answer: (B)


43. Bonds or debentures issued by Securitization company should bear interest not less than

(A) Bank Rate

(B) Prime Lending Rate

(C) 1.5% over the Bank Rate

(D) 1.5% over the Saving Rate

Answer: (C)


44. Section 131 of the Negotiable Instruments Act extends protection to the _______

(A) Collecting Banker

(B) Paying Banker

(C) Advising Banker

(D) Confirming Banker

Answer: (A)


45. When a customer, by a letter has advised the bank not to honour/pay a particular cheque, such letter is called ______

(A) Cancellation letter

(B) Garnishee letter

(C) Mandate

(D) None of the above

Answer: (D)


46. Flow of foreign loans and investments affect

(A) Trade balance

(B) Current Account balance

(C) Capital Account balance

(D) None of the above

Answer: (C)


47. Concessions mainly multinational in character come under the principle of

(A) Non-discrimination

(B) Reciprocity

(C) Market Access

(D) Fair Competition

Answer: (B)


48. From the following identify the one which is not a commercial counter trade?

(A) Classical barter

(B) Counter purchase

(C) Pre-compensation

(D) Buy-back agreement

Answer: (D)


49. If the spot price is higher than the strike price in a call option, it is referred to as

(A) At-the-money

(B) In-the-money

(C) Out-of-the-money

(D) Premium

Answer: (B)


50. Identity the item which does not include under Current Account transaction.

(A) Services

(B) Non-monetary movement of gold

(C) Unilateral transfer

(D) Investment income

Answer: (B)