Explore Exams
Login Signup
Sign in Open App
CA Foundation Exam  >  CA Foundation Test  >  Quantitative Aptitude  >  Test: Index Numbers- 3 - CA Foundation MCQ

Index Numbers- 3 - CA Foundation Quant Aptitude Free MCQ Test with solutions


MCQ Practice Test & Solutions: Test: Index Numbers- 3 (40 Questions)

You can prepare effectively for CA Foundation Quantitative Aptitude for CA Foundation with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Index Numbers- 3". These 40 questions have been designed by the experts with the latest curriculum of CA Foundation 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 40 minutes
  • - Number of Questions: 40

Sign up on EduRev for free to attempt this test and track your preparation progress.

Test: Index Numbers- 3 - Question 1
Save

Index numbers are free from a unit of measurement because the index number shows 

Detailed Solution: Question 1

Index numbers are unit-free measures of economic indicators. Index numbers are based on a value of 100, which makes it easy to measure percent changes.

Test: Index Numbers- 3 - Question 2
Save

Factor Reversal Test is expressed in terms of

Clear all your doubts with EduRev
Test: Index Numbers- 3 - Question 3
Save

Circular Test satisfy is

Test: Index Numbers- 3 - Question 4
Save

From the following data for the 5 groups combined

The general Index number is

Detailed Solution: Question 4

Correct Answer :- b

Explanation :

Group weight index number  =  Weighted Index/ Total Weight

=  26920/100  

= 269.2

Group weight index number = 269.2

Test: Index Numbers- 3 - Question 5
Save

From the following data with 1966 as base year

Q. The price per unit of commodity A in 1966 is

Test: Index Numbers- 3 - Question 6
Save

The index number in whole sale prices is 152 for August 1999 compared to August 1998.During the year there is net increase in prices of whole sale commodities to the extent of

Test: Index Numbers- 3 - Question 7
Save

Fishers price index number is the ------- 

Detailed Solution: Question 7

Laspeyres and Paasche Price Indexes or Inflation Factors will differ. Their geometric averages are called Fisher Indexes (after Irving Fisher). As a measure of the inflation factor (one plus the inflation rate), a Fisher Price Index is the square root of the product of Laspeyres and Paasche Price Indexes.

Test: Index Numbers- 3 - Question 8
Save

Purchasing Power of Money is

Test: Index Numbers- 3 - Question 9
Save

The price level of a country in a certain year has increased 25% over the base period.The index number is

Detailed Solution: Question 9

2. 125

Explanation:

An index number is a measure of how much a quantity, such as a price level, has changed relative to a base period. When the price level increases by 25% over the base period, the index number is calculated as follows:

Index Number=100+Percentage Increase 

In this case:

Index Number=100+25=125

So, the index number is 125.

Test: Index Numbers- 3 - Question 10
Save

The index number of prices at a place in 1998 is 355 with 1991 as base. This means

Test: Index Numbers- 3 - Question 11
Save

If the price of all commodities in a place have increased 125 times in comparison to the base period prices, then the index number of prices for the place is now

Test: Index Numbers- 3 - Question 12
Save

The whole sale price index number or agricultural commodities in a given region at a given date is 280. The percentage use in prices of agricultural commodities over the base year is :

Test: Index Numbers- 3 - Question 13
Save

If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for the place is now (index number of prices of base period = 100)

Test: Index Numbers- 3 - Question 14
Save

From the data given below

 

Q. Then the suitable index number is

Test: Index Numbers- 3 - Question 15
Save

Bowley’s Index number is expressed in terms of :

Test: Index Numbers- 3 - Question 16
Save

From the following data

 

Q. The simple Aggregative Index is

Detailed Solution: Question 16

Correct Answer :- B

Explanation : Sum of current price = 235 

Sum of base price = 212

=> 235/212*100

= 110.8

Test: Index Numbers- 3 - Question 17
Save

With regard to Laspeyre’s and Paasche’s price index number, it is maintained that “If the prices of all the goods change in the same ratio, the two indices will be equal for them the weighting system is irrelevant; or if the quantities of all the goods change in the same ratio, they will be equal, for them the two weighting systems are the same relatively”.Then the above statements satisfy.

*Multiple options can be correct
Test: Index Numbers- 3 - Question 18
Save

The quantity Index number using Fisher’s formula satisfies :

Detailed Solution: Question 18

Correct Answer :- d

Explanation : The time reversal test requires that the index for the later period based on the earlier period should be the reciprocal of that for the earlier period based on the later period; one of the desirable features of the “Fisher Ideal” price and volume indexes.

Fisher’s method satisfies both the time reversal test and factor reversal test. Hence it is called the ideal index number. Another test of the adequacy of the index number formula is what is known as ‘circular test’.

Test: Index Numbers- 3 - Question 19
Save

For constructing consumer price Index is used :

Test: Index Numbers- 3 - Question 20
Save

The cost of living Index (C.L.I.) is always :

Test: Index Numbers- 3 - Question 21
Save

The Time Reversal Test is not satisfied to :

Test: Index Numbers- 3 - Question 22
Save

Given below are the date on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100)

Q. Then weighted average of price Relative Index is : 

Detailed Solution: Question 22

Objective:

Calculate the CPI for 1985 using the weighted average of price relatives method.

  • Base year (1984) CPI = 100

  • Weights are given for each item.

Formula for CPI:

CPI = (Sum of (Price Relative × Weight)) ÷ (Sum of Weights)

Where:

Price Relative for each item = (Price in 1985 ÷ Price in 1984) × 100

Step 1: Compute the Price Relative for each item

  • Wheat: (0.75 ÷ 0.50) × 100 = 150

  • Milk: (0.75 ÷ 0.60) × 100 = 125

  • Egg: (2.40 ÷ 2.00) × 100 = 120

  • Sugar: (2.10 ÷ 1.80) × 100 = 116.67

  • Shoes: (10.00 ÷ 8.00) × 100 = 125

Step 2: Multiply each Price Relative by its Weight

  • Wheat: 150 × 2 = 300

  • Milk: 125 × 5 = 625

  • Egg: 120 × 4 = 480

  • Sugar: 116.67 × 8 = 933.36

  • Shoes: 125 × 1 = 125

Step 3: Sum the Weighted Price Relatives

300 + 625 + 480 + 933.36 + 125 = 2463.36

Step 4: Sum the Weights

2 + 5 + 4 + 8 + 1 = 20

Step 5: Calculate the CPI for 1985

CPI = 2463.36 ÷ 20 = 123.168

Rounding to two decimal places:

CPI ≈ 123.17

Interpretation:

The CPI for 1985 is 123.17, meaning the price level in 1985 increased by 23.17% compared to the base year 1984 (where CPI = 100).

Final Answer:

The Consumer Price Index (CPI) for 1985 is 123.17.

Test: Index Numbers- 3 - Question 23
Save

The Factor Reversal Test is as represented symbolically is :

Test: Index Numbers- 3 - Question 24
Save

If the 1970 index with base 1965 is 200 and 1965 index with base 1960 is 150, the index 1970 on base 1960 will be :

Detailed Solution: Question 24

Then  1965 index with base 1960 is  150

=>  1960 index  = 100

the 1970 index with base 1965 is 200

=> 1965 index  = 100

When 1965 index = 100 then  1970 index = 200

When 1965 index = 1 then  1970 index = 200/100

When 1965 index = 150 then  1970 index = (200/100) * 150 = 300

so 1970 index = 300   When 1960 index = 100

Hence the index 1970 on the base 1960 will be​ 300

Test: Index Numbers- 3 - Question 25
Save

Circular Test is not met by :

Test: Index Numbers- 3 - Question 26
Save

Circular test is satisfied by: 

Detailed Solution: Question 26

The circular test checks if an index number gives the same result when comparing two periods indirectly through a third period, and the simple aggregative method is the only index number that consistently passes this test

Test: Index Numbers- 3 - Question 27
Save

The value index is equal to :The value index is equal to :

Test: Index Numbers- 3 - Question 28
Save

Time Reversal Test is represented symbolically by :

Test: Index Numbers- 3 - Question 29
Save

In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :

Test: Index Numbers- 3 - Question 30
Save

From the following data

Q. The price index number for the year 1934 is :

Detailed Solution: Question 30

ANSWER :- d

Solution :- Price Index = ΣP(Current area)/ΣP(Base Area) * 100

= (42/31)*100

= 135.48

View more questions
92 videos|224 docs|83 tests
Join Course
Information about Test: Index Numbers- 3 Page
In this test you can find the Exam questions for Test: Index Numbers- 3 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Index Numbers- 3, EduRev gives you an ample number of Online tests for practice
Download as PDF
;

About this CA Foundation Practice Test

This test contains 40 MCQs on Index Numbers- 3 with detailed solutions for each question. It is part of the Quantitative Aptitude for CA Foundation course on EduRev, designed to align with the current CA Foundation syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

Explore more CA Foundation Study Resources

If you found this Index Numbers- 3 MCQ Test helpful, you can further enhance your CA Foundation preparation with in-depth courses on EduRev, for all the subjects and topics available in Quantitative Aptitude for CA Foundation course. The course offers:
  • Video Lectures: covering all the topics of Quantitative Aptitude for CA Foundation
  • Notes for Revision: offering revision notes, important questions, summaries, flashcards, cheatsheets & more for CA Foundation preparation
  • MCQ Test: variety of questions as per the pattern of CA Foundation exam
Signup to see your scores go up
within 7 days!
Takes less than 10 seconds to signup