June 2010 - Paper 2

11:  

Which combination of the following factors has driven globalisation in the recent past?

I Growth of multinational corporations.

II. Internationalisation of finance.

III. Increased international trade.

A.

I and II

B.

I and III

C.

II and III

D.

I, II and III

 
 

Option: D

Explanation :

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12:  

Total production will be maximum when

A.

Marginal production is maximum

B.

Average production is maximum

C.

Marginal production is zero

D.

Average production is equal to the marginal production.

 
 

Option: D

Explanation :

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13:  

Match the items of List-I with items of List-II.

List-I                             List-II

I. Hygiene theory           (1) Abraham H. Maslow

II. Theory of 'X' and 'Y'   (2) Victor Vroom

III. Expectancy theory   (3) Fredrick Herzberg

                                      (4) Doughlas Mcgregor

A.

I  II  III

3  4  2

B.

I  II  III

1  4  2

C.

I  II  III

3  2  4

D.

I  II  III

1  2  4

 
 

Option: A

Explanation :

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14:  

Working capital represents the portion of current assets financed through long term funds. This indicates (1) net working capital and/or (2) gross working capital.

A.

(1) is correct

B.

(2) is correct

C.

Both (1) and (2) are correct

D.

Neither of the two is correct

 
 

Option: B

Explanation :

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15:  

Which of the following limits the power of credit creation by Commercial Banks?

A.

Fiscal Policy

B.

Banking Laws

C.

Business Pessimism

D.

None of the above

 
 

Option: A

Explanation :

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