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Reasoning Aptitude

EVALUATING AN INTERFACE MCQs

Total Questions : 135 | Page 7 of 14 pages
Question 61. Read the passage and answer the following questions:One of the promising features of the current market is that domestic institutions seem to have turned buyers after a very long time. They have been net buyers this month with inflows exceeding by Rs. 80 crore till early this month. That's admittedly a small amount, but its significance lies in the fact that domestic institutions have been net sellers every month this financial year expect in September when their net purchases amounted to a microscopic Rs. 28 crore. This financial years net sales by domestic institutions amounted to Rs. 2964 crore, which has substantially offset the net inflows of Rs. 3187 crore by FIIs. The net purchases by domestic institutions could indicate that money is once again flowing into equity funds, eager not to miss the widely expected rally. Part of this season could be a shift in investor portfolios, as people lighten up on debt and put that money into equity.Domestic institutions have been consistently selling only in all the months in this financial year.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option E. -> If the inference is definitely false


See the sentence "one of the ... long time".


Question 62. It is expected that in the early next financial year the gap between the net sales and net purchases will reduce substantially.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option C. -> If the data are inadequate


Data inadequate.


Question 63. FIIs bought more than what was sold by domestic institutions this financial year.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option A. -> If the inference is definitely true


See the sentence "This financial ... by FIIs".


Question 64. The equity market is expected to experience a subdued activity in near future.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option D. -> If the inference is probably false


Shift in investor portfolios and emerging positive scenario make the inference probably false.


Question 65. The activities in equity market has direct relationship with the debt market.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option B. -> If the inference is probably true


See the last part of the passage.


Question 66. Read the passage and answer the following questions:Cotton acreage in India during the current year has fallen by 10% as cotton growers have moved on cultivation of other cash crops. This is the result of the cotton glut in world markets post September 11 and the consequent slowdown in the world economy. But this scenario brought with it benefits to one segment of the industry - yarn manufacturers - as they get higher prices for their produce. Some tarn manufacturers had stocked up low priced cotton last year. The combined effect of all this is evident in the rise in net profits and net margins of yarn manufacturers.The farmers will again grow cotton next year due to increased price of cotton yarn.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option D. -> If the inference is probably false


This will benefit the yarn manufacturers, not the farmers, unless the latter act as the former also.


Question 67. There has been a huge drop in the supply of cotton during the current year.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option B. -> If the inference is probably true


The passage says nothing about the supply of cotton during the current year. But lack of enthusiasm in cotton growers, fall of cotton acreage and rise in the price of yarn makes the inference probably true.


Question 68. There has been shortage of cotton in the world market last year.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option E. -> If the inference is definitely false


The price of the cotton was very low last year which attracted the yarn manufacturers to store cotton. Therefore, the case of shortage is ruled out.


Question 69. The yarn manufacturers have marginally suffered during post September 11 period.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option E. -> If the inference is definitely false


Note that yarn manufacturers get benefited in post September 11 scenario.


Question 70. Land used for growing cotton in India is conductive to grow other cash crops.
  1.    If the inference is definitely true
  2.    If the inference is probably true
  3.    If the data are inadequate
  4.    If the inference is probably false
  5.    If the inference is definitely false
 Discuss Question
Answer: Option B. -> If the inference is probably true


That is why the cotton growers seem to have switched over to other cash crops.


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