CAT Questions

Q:

All India Radio was founded in

A) 1935 B) 1931
C) 1930 D) 1927
 
Answer & Explanation Answer: C) 1930

Explanation:

All India Radio founded in 1930.

With over 420 radio stations in about 23 languages & 179 dialects.

AIR is one of the largest radio broadcasters in world.

It also has 99.19% population coverage & 18 FM channels.

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Filed Under: General Awareness
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

What is an example of an inflation risk?

Answer

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.


 


HOW IT WORKS (EXAMPLE):



For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.

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Subject: Bank Interview Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 2404
Q:

Which country is now the world's largest weapons importer?

A) Saudi Arabia B) Iran
C) Pakistan D) China
 
Answer & Explanation Answer: A) Saudi Arabia

Explanation:

The world's largest weapons importer is Saudi Arabia.

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Exam Prep: AIEEE , Bank Exams , CAT
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1 2403
Q:

Which city has made Hindi as 3rd language in courts?

A) Abu Dhabi B) Quwait
C) Colombo D) Tehran
 
Answer & Explanation Answer: A) Abu Dhabi

Explanation:

Abu Dhabi (UAE) city has made Hindi as 3rd language in courts.

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1 2403
Q:

Final goods and services refer to

A) goods and services purchased by ultimate users, rather than for resale or further processing B) goods and services whose value has been adjusted for changes in the price level
C) the excess of U.S. exports over U.S. imports D) goods and services that are unsold and therefore added to inventories
 
Answer & Explanation Answer: A) goods and services purchased by ultimate users, rather than for resale or further processing

Explanation:

Final goods and services refer to goods and services that have been purchased for final use and that cannot be resaled.

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Filed Under: Business Awareness
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

2 2402
Q:

Demand is said to be inelastic when

A) Percentage change in demand is less than the percentage change in price of the good B) Percentage change in demand is greater than the percentage change in price of the good
C) Percentage change in demand is equal to the percentage change in price of the good D) None of the above
 
Answer & Explanation Answer: A) Percentage change in demand is less than the percentage change in price of the good

Explanation:

Demand is said to be inelastic, when the demand for the good doesn't change much or it is negotiable when the price of the good changed.

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Filed Under: Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 2400
Q:

Which best describes the difference between stocks and bonds?

A) stocks allow investors to own a portion of the company; bonds are loans to the company B) stocks are more reliable investment;bonds tend to be more volatile
C) stocks allow investors to share in profits;bonds make investors responsible for company debts D) stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year
 
Answer & Explanation Answer: B) stocks are more reliable investment;bonds tend to be more volatile

Explanation:
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Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

0 2399
Q:

A decline in the real interest rate will

A) shift the investment schedule downward B) shift the investment schedule leftward
C) increase the amount of investment spending D) None of the above
 
Answer & Explanation Answer: C) increase the amount of investment spending

Explanation:

The real interest rate is the percentage increase in purchasing power that the lender receives on a loan. A decline in the real interest rate will increase the amount of investment spending.

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Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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