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Test: Index Numbers- 1

40 Questions MCQ Test Quantitative Aptitude for CA CPT | Test: Index Numbers- 1

Description

Attempt Test: Index Numbers- 1 | 40 questions in 40 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Quantitative Aptitude for CA CPT for CA Foundation Exam | Download free PDF with solutions

QUESTION: 1

Choose the most appropriate option (a) (b) (c) or (d)

Q.A series of numerical figures which show the relative position is called

A.
index no.
B.
relative no.
C.
absolute no.
D.
none

Solution:

QUESTION: 2

Index no. for the base period is always taken as

A.
200
B.
50
C.
1
D.
100

Solution:

QUESTION: 3

_________ play a very important part in the construction of index nos.

A.
weights
B.
classes
C.
estimations
D.
none

Solution:

QUESTION: 4

________ is particularly suitable for the construction of index nos.

A.
H.M.
B.
A.M.
C.
G.M.
D.
none

Solution:

QUESTION: 5

Index nos. show _________ changes rather than absolute amounts of change.

A.
relative
B.
percentage
C.
both
D.
none

Solution:

QUESTION: 6

The ________ makes index nos. time-reversible.

A.
A.M.
B.
G.M.
C.
H.M.
D.
none

Solution:

QUESTION: 7

Price relative is equal to

A.
B.
C.
Price in the given year × 100
D.
Price in the base year × 100

Solution:

QUESTION: 8

Index no. is equal to

A.
sum of price relatives
B.
average of the price relatives
C.
product of price relative
D.
none

Solution:

QUESTION: 9

The ________ of group indices given the General Index

A.
H.M.
B.
G.M.
C.
A.M.
D.
none

Solution:

QUESTION: 10

Circular Test is one of the tests of

A.
index nos
B.
hypothesis
C.
both
D.
none

Solution:

QUESTION: 11

__________ is an extension of time reversal test

A.
Factor Reversal test
B.
Circular test
C.
both
D.
none

Solution:

Circular test Is an extension of time reversal test

QUESTION: 12

Weighted G.M. of relative formula satisfy ________test

A.
Time Reversal Test
B.
Circular test
C.
Factor Reversal Test
D.
none

Solution:

QUESTION: 13

Factor Reversal test is satisfied by

A.
Fisher’s Ideal Index
B.
Laspeyres Index
C.
Paasches Index
D.
none

Solution:

QUESTION: 14

Laspeyres formula does not obey

A.
Factor Reversal Test
B.
Time Reversal Test
C.
Circular Test
D.
none

Solution:

QUESTION: 15

A ratio or an average of ratios expressed as a percentage is called

A.
a relative no.
B.
an absolute no.
C.
an index no.
D.
none

Solution:

QUESTION: 16

The value at the base time period serves as the standard point of comparison

A.
false
B.
true
C.
both
D.
none

Solution:

QUESTION: 17

An index time series is a list of _______ nos. for two or more periods of time

A.
index
B.
absolute
C.
relative
D.
none

Solution:

QUESTION: 18

Index nos. are often constructed from the

A.
frequency
B.
class
C.
sample
D.
none

Solution:

QUESTION: 19

__________ is a point of reference in comparing various data describing individual behaviour.

A.
Sample
B.
Base period
C.
Estimation
D.
none

Solution:

QUESTION: 20

The ratio of price of single commodity in a given period to its price in another period is called the

A.
base period
B.
price ratio
C.
relative price
D.
none

Solution:

QUESTION: 21

A.
Relative Price Index
B.
Simple Aggregative Price Index
C.
both
D.
none

Solution:

QUESTION: 22

Chain index is equal to

Solution:

QUESTION: 23

P₀₁ is the index for time

A.
1 on 0
B.
0 on 1
C.
1 on 1
D.
0 on 0

Solution:

QUESTION: 24

P₁₀ is the index for time

A.
1 on 0
B.
0 on 1
C.
1 on 1
D.
0 on 0

Solution:

QUESTION: 25

When the product of price index and the quantity index is equal to the corresponding value index then

A.
Unit Test
B.
Time Reversal Test
C.
Factor Reversal Test
D.
none holds

Solution:

QUESTION: 26

The formula should be independent of the unit in which or for which price and quantities are quoted in

A.
Unit Test
B.
Time Reversal Test
C.
Factor Reversal Test
D.
none

Solution:

QUESTION: 27

Laspeyres method and Paasche’s method do not satisfy

A.
Unit Test
B.
Time Reversal Test
C.
Factor Reversal Test
D.
none

Solution:

Correct Answer :- B

QUESTION: 28

The purpose determines the type of index no. to use

A.
yes
B.
no
C.
may be
D.
may not be

Solution:

QUESTION: 29

The index no. is a special type of average

A.
false
B.
true
C.
both
D.
none

Solution:

QUESTION: 30

The choice of suitable base period is at best temporary solution

A.
true
B.
false
C.
both
D.
none

Solution:

QUESTION: 31

Fisher’s Ideal Formula for calculating index nos. satisfies the _______ tests

A.
Units Test
B.
Factor Reversal Test
C.
both
D.
none

Solution:

QUESTION: 32

Fisher’s Ideal Formula dose not satisfy _________ test

A.
Unit test
B.
Circular Test
C.
Time Reversal Test
D.
none

Solution:

QUESTION: 33

_________________ satisfies circular test

A.
G.M. of price relatives or the weighted aggregate with fixed weights
B.
A.M. of price relatives or the weighted aggregate with fixed weights
C.
H.M. of price relatives or the weighted aggregate with fixed weights
D.
none

Solution:

QUESTION: 34

Laspeyre's and Paasche’s method _________ time reversal test

A.
satisfy
B.
do not satisfy
C.
are
D.
are not

Solution:

QUESTION: 35

There is no such thing as unweighted index numbers

A.
false
B.
true
C.
both
D.
none

Solution:

QUESTION: 36

Theoretically, G.M. is the best average in the construction of index nos. but in practice, mostly the A.M. is used

A.
false
B.
true
C.
both
D.
none

Solution:

QUESTION: 37

Laspeyre’s or Paasche’s or the Fisher’s ideal index do not satisfy

A.
Time Reversal Test
B.
Unit Test
C.
Circular Test
D.
none

Solution:

QUESTION: 38

___________ is concerned with the measurement of price changes over a period of years, when it is desirable to shift the base

A.
Unit Test
B.
Circular Test
C.
Time Reversal Test
D.
none

Solution:

QUESTION: 39

The test of shifting the base is called

A.
Unit Test
B.
Time Reversal Test
C.
Circular Test
D.
none

Solution:

QUESTION: 40

Which among the following statements is INCORRECT?

A.
Coefficient of correlation can be computed directly from the data without measuring deviation.
B.
Measures of Dispersion are also called averages of the second order.
C.
Standard deviation can be negative.
D.
Mean deviation can never be negative.