Paper 3 has been removed from NET from 2018 (Notification)- now paper 2 and 3 syllabus is included in paper 2. Practice both paper 2 and 3 from past papers.

NTA NET Commerce 26 June 2019 Part 1 Download all the papers to prepare for NET 2020

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Ques 1. Excess capacity is not noticed in which of the following market conditions?

(I) Monopoly

(II) Monopolistic Competition

(III) Oligopoly

(IV) Perfect Competition

Ques 2. Consumer behaviour does NOT consist of which of the following activities?

(I) Obtaining

(II) Consuming

(III) Disposition

(IV) Producing

Ques 3. Which of the following is the predecessor of the IRDA Act 1999?

(I) The Insurance Act 1938

(II) The Life Insurance Corporation Act 1956

(III) The Marine Insurance Act 1963

(IV) The Public Liability Insurance Act 1991

Ques 4. Which of the following items is kept outside the purview of GST?

(I) Tobacco Products

(II) Petroleum Products

(III) Edible Oils

(IV) Insurance Products

Ques 5. Which among the following institutions is NOT a part of World Bank Group?

(I) International Development Association (IDA)

(II) International Monetary Fund (IMF)

(III) International Finance Corporation (IFC)

(IV) Multilateral Investment Guarantee Agency (MIGA)

Ques 6. Creditworthiness score in India ranges between

(I) 300 to 600

(II) 300 to 900

(III) 500 to 1000

(IV) 900 to 1600

Ques 7. The essence of the law of diminishing returns is

(I) Inelastic Production

(II) Negative marginal production

(III) Declining total production

(IV) Declining average production

Ques 8. Assertion (A): Brainstorming demands generation of a number of alternatives to a problem

Reason (R): Participants generate as many alternatives as possible without evaluating them in brainstorming session.

In the context of the above statements, which one of the following codes is correct?

(I) Assertion (A) is correct and (R) is the correct explanation of (A)

(II) Both (A) and (R) are correct but (R) is not the right explanation of (A)

(III) Assertion (A) is correct but Reason (R) is incorrect

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

Ques 9. Match List I with List II:

List me:

(a) Net Income Approach

(b) Gordon Model

(c) Internal Rate of Return

(d) Reorder Level

List II:

(i) Inventory Management

(ii) Capital Budgeting

(iii) Capital structure theory

(iv) Dividend theory

Choose the correct option from the choices given below:

(I) (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)

(II) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

(III) (a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)

(IV) (a)-(ii), (b)-(i), (c)-(iv), (d)-(iii)

Ques 10. Which of the following is NOT included in negotiable instruments?

(I) Cheque

(II) Demand Draft

(III) Promissory Note

(IV) Mutual Fund

Ques 11. X is an individual of 55 years of age having gross total income of ₹ 3, 50,000. What is the tax liability for assessment year 2019 - 20?

(I) ₹ 5,000

(II) ₹ 2,500

(III) ₹ 2,600

(IV) ₹ 3,000

Ques 12. Statement I: T test and F test are based on the identical assumptions.

Statement II: T test is used for comparison between two groups whereas F test is used for comparison between more than two groups.

In the context of the above two statements, which of the following codes is correct?

(I) Both the statements I and II are correct

(II) Both the statements I and II are incorrect

(III) Statement I is correct but II is incorrect

(IV) Statement II is correct but I is incorrect

Ques 13. Which among the following is NOT a correct statement?

(I) Hedge funds are not mutual funds

(II) Hedge funds can be sold to public

(III) Investors in mutual funds must pay various fees and expenses

(IV) Mutual funds provide economies of scale to investment decisions

Ques 14. Which of the following reflects the sum of perceived tangible and intangible benefits and costs to a customer?

(I) Customer Satisfaction

(II) Customer Delight

(III) Customer Value

(IV) Customer Expectation

Ques 15. Currency swap is a method of

(I) hedging against foreign exchange risk

(II) Speculation in foreign exchange

(III) Leverage instrument used by cooperative banks

(IV) Mode of payment in international trade

Ques 16. Promoting team spirit, harmony and unity within the organization is the principle of

(I) Order

(II) Scalar Chain

(III) Esprit de corps

(IV) Equity

Ques 17. Amount unutilized in Capital Gain Account Scheme for which exemption claimed u/s 54 shall be treated as long term capital gain if

(I) 2 years have expired from the date of transfer

(II) 2 years have expired from the date of deposit

(III) 3 years have expired from the date of transfer

(IV) 3 years have expired from the date of deposit

Ques 18. A 'sale and lease back' arrangement is more suitable for a lessee having

(I) Liquidity Crisis

(II) Surplus Fund

(III) High Profit

(IV) No - Profit no loss

Ques 19. Which of the following types of goodwill is considered to be the best?

(I) Dog goodwill

(II) Cat goodwill

(III) Rat goodwill

(IV) Cow goodwill

Ques 20. Which is the most appropriate mode of entry in international business to an enterprise with little experience of international markets?

(I) Acquisition

(II) Strategic Alliance

(III) Joint Venture

(IV) Exporting

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