CBSE NET COMMERCE QUESTIONS WITH ANSWER

QUESTION SET-11 76.     BOLT system in the Indian securities market is related to : A. National Stock Exchange B. Bombay Stock Exchange C. Over the counter Exchange of India D. Multi commodity Stock Exchange ANSWER:-B EXPLANATION:-  The economic and capital market in India cannot exist without a stock exchange; there are two main stock exchanges where transactions take place; the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). While all the major transactions take place here, there are over 20 different stock exchanges located across the country. Online trading in India has changed the meaning of trading in the country. With no requirement for a broker, trading has become easier, faster and far more convenient than earlier days. Some of the major financial products and services offered through online trading are mutual funds, equities, general insurance, life insurance, share trading, portfolio management, commodities trading and financial plann

QUESTION SET -10 (CBSE COMMERCE NET ) 66. . Who formulated the following model for estimating the markets price of equity share? P=D+R/Ke (E-D) /Ke where p =market price of equity share  D=DPS E= EPS E-D=Retained earning per share R=internal rate of return Ke=cost of capital Options:- A.Modigliani and Miller B. Myron Gordon C.James E Walter D. Clarkson and Elliot ANSWER:-C EXPLANATION :-The above formula is propounded by James E. Walter .This formula expresses relationship between dividend policy and value of firm. Walter's model on dividend decision of the company affects its valuation. He states that a firm which pays higher dividend has relatively higher values as compared to those firm which that pay lower dividend. Walter's policy is based on following assumption:- 1.All the investment are financed by internal funds no external fund is raised in the form of equity and debt. 2. firms has infinite life. 3. The firm has constant rate of return 

QUESTION SET-9 ( CBSE COMMERCE NET) 56.Which one is not finance company? A.Hire purchase company B. IRDA C.mutual benefit finance company D.loan companies ANSWER:-B EXPLANATION :-IRDA stands for " Insurance  Regulatory and  Development Authority of India". It is an autonomous, statutory agency.Its main function is to regulate  to regulate and promote the insurance and reinsurance industries  in India. Its headquartered in Hyderabad,  Telangana . Current chairman of IRDA is T.S. Vijayan. It is not a finance  company it is an insurance company. 57.Assertion(A): use of paper money is replaced by plastic money.The future will see the electronic money clearance through satellite networking. Reason(R):RBI is encouraging e banking  codes:- A.(A) is false but(R)is true. B.(A) is true but (R) is false. C.both (A) and (R) are false. D.both (A) and (R) are true. ANSWER:-D EXPLANATION :-Option D is correct RBI is promoting the use of plasti

QUESTION SET-8 (CBSE COMMERCE NET ) 46. SDRs are popularly known as A.currency notes B.paper gold C.silver coin D.gold coin ANSWER:-B EXPLANATION: -SDR are called special drawing rights its introduced by IMF for increasing international liquidity.It is popularly known as paper gold also. SDR was introduced in 1969 with the objective of overcoming the problem of international liquidity. Under this ,each country is allotted quotas which can be exchanged for currency for making international payments .Liquidity means to be able to make payment easily. In international scenario it means making payment for its imports.When a country faces liquidity problem that  means unable to make payment for its import than its balance of payments becomes unfavorable .In such a situation SDR can be used for meeting such deficits. 47.which one is not international institution? A.IMF B.IDA C. IBRD D. TRAI ANSWER:-D EXPLANATION :-Except option D all are internation

QUESTION SET-7 36 . The following is the demand function in the small market: Q=50-5P where Q denotes quantity in physical units and P denotes price of the commodity.At price rupees 5 the point price elasticity of demand would be: A. zero B. equal to unity C.highly elastic D.highly inelasti c ANSWER:-B EXPLANATION :-As we know that Ed=-(dQ / dP ) X (P/Q  ) P=5 (given) Q=50-5*5 Q=50-25 Q=25 dQ /dP=-5 (by differentiating) Ed=(-)(-)5*(5/25) Ed   =25/25 Ed=1 equal to unity 37 . Which one of the following technique for appraisal of investment proposals are based on time value of money a. accounting rate of return b.Internal rate of return c.profitability index d.earning per share codes:- A. a and b B. b and c C.a and d D.a,b and d ANSWER:-B EXPLANATION :- internal rate of return (IRR) and profitability index (PI) are part of discounted cash flow method which consider time value of money. 38.which of the following assumptions is not includ