CAT Questions

Q:

Automatic stabilizers refer to

A) government spending and taxes that automatically increase or decrease along with the business cycle. B) changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
C) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. D) the money supply and interest rates that automatically increase or decrease along with the business cycle.
 
Answer & Explanation Answer: A) government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:
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Q:

In the aggregate expenditures model, it is assumed that investment

in_the_aggregate_expenditures_model_it_is_assumed_that_investment1553493949.jpg image

A) does not change when real GDP changes B) does not respond to changes in interest rates
C) changes by less in percentage terms than changes in real GDP D) automatically changes in response to changes in real GDP
 
Answer & Explanation Answer: A) does not change when real GDP changes

Explanation:

In the aggregate expenditures model, it is assumed that investment does not change when real GDP changes.

 

  • The aggregate expenditure is the sum of all the expenditures undertaken in the economy by the factors during a specific time period.

 

  • The aggregate expenditure determines the total amount that firms and households plan to spend on goods and services at each level of income.
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Q:

Income taxes are allocated to

A) discontinued operations B) prior period adjustments
C) extraordinary items D) All the above
 
Answer & Explanation Answer: D) All the above

Explanation:

Income taxes are allocated to extraordinary items, discontinued operations and prior period adjustments.

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Filed Under: Indian Economy
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Q:

Which sentence is punctuated correctly?

A) One question you should always ask yourself: “Am I pleased with the results?” B) Always ask yourself this question: “Am I pleased with the results?
C) Always ask yourself a question like: “Am I pleased with the results?” D) One question you should always ask yourself is: “Am I pleased with the results?”
 
Answer & Explanation Answer: A) One question you should always ask yourself: “Am I pleased with the results?”

Explanation:

The second would employ a comma, or semi-colon, and not a colon so it is not properly punctuated.

 

The third sentence would not be correct because it uses 'like', usually used for comparison. Since you are not comparing two questions, it would not be appropriate.

 

The fourth sentence has 'is' before the colon, which is a implies declaration and not listing. So, again, it would not be appropriate.

 

Hence, the first sentence, however, is punctuated correctly.

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Q:

Who has been appointed as an Executive Director in the World Bank in the US ?

A) S Aparna B) Ashok Lavasha
C) Rahul Verma D) S C Garg
 
Answer & Explanation Answer: A) S Aparna

Explanation:
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Filed Under: General Awareness
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Q:

On what basis currency value depends?

A) inflation B) employment
C) imports and exports D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

In economy, the currency value depends on imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices.

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Q:

The process of copying dna is called

A) Copying B) Replication
C) Repulsion D) Replying
 
Answer & Explanation Answer: B) Replication

Explanation:

The process of copying dna is called Replication.

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Q:

What can you break but not touch?

A) Mirror B) Word
C) Promise D) All of the above
 
Answer & Explanation Answer: C) Promise

Explanation:

A promise. 

 

The Promise made to somebody by you can be break but you cannot touch it.

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