ABM- numerical with solutions by Neeraj agnihotri

1. Calculate broad money M3

Currency with public- Rs 100000

Demand deposit with banking sys-Rs 200000

Other deposit with RBI- Rs 200000

Savings deposit of post office savings banks-

Rs40000

Time deposits with banking sys-Rs 200000

All deposit with post office banking sys in

cluding Rs 40000 of NSC total-Rs 100000

a) Rs 500000

b) Rs 700000

c) Rs 800000

d) Rs 900000

Ans: b

Solution-M3 =m1+time deposit with banking

system

So M1=currency with public+ demand

deposit with the bankingsys+other deposits

with rbi

M1=100000+200000+200000

M1=500000

Than m3=500000+200000

Ans m3=700000

2. Qtn how much m4 will be from above qtn

a) Rs 700000

B) Rs 740000

c) Rs 760000

D) Rs 80000

Ans :c

M4=m3 + all deposit with post officesavings banks(

excluding National savings certificates)

m3 is rs 700000 from above qtn

since total deposit with po is Rs100000 out of it

Rs 40000 in NSC so Rs100000-40000= Rs 60000

M4=700000+60000

M4=760000

3. Calculate Inflation of Abc company as price

index in current year is RS 120lakh and price

index in base year is Rs 100 lakh.

a)20

b)1.2

c).2

d)200

e) non of these

ans : a ABM- 31

solutions : inflations

=( pirce index in current year-price index in base year)/

(price index in base year) * 100

= (12000000-10000000)/10000000*100

= 2000000/10000000 *100

= 02*100

= 20

4. data of country z co. is as follows all data are

in million in Indian rupees

a) consumptions : Rs 10000

b)gross investment : Rs 20000

c)govt spending : Rs 30000

d) Export : Rs 80000

e) Import : Rs 60000

f) taxes : Rs 2000

g) subsidies : RS 100

(on production and import)

h) Compensation of employee: Rs 200

i) Property Income : Rs 300

( net receivable from aboard)

j)total capital gains from from : Rs 1100

overseas investment

k) Income earned by foreign : Rs 500

national domestically

QTN i) calculate GDP………

a) Rs 60000

b) Rs64000

c) Rs62000

e) Rs 61000

Ans: c

Solutions ABM-83page

GDP=C+I+G+(X-M)

=10000+20000+30000+(8000-6000)

=62000

4 .QTN ii) calculate GNP……..from qtn no 4 i)

a) Rs 62000

B) Rs 60600

c)Rs 62200

d) Rs 62600

ans : d

GNP=GDP+ NR (total capital gains from

Overseas investment-income earn by foreign

national domestically)

= 62000+ (1100-500)

=62600

4. iii) Calculate GDP at cost factor

a) Rs 62000

b) Rs 62100

c) Rs 60100

d) Rs 62100

Ans : c

Solutions: GDP at factor rate

=GDP at market prices-(Indirect taxes-

subsidies)

=62000-(2000-100)

=60100

4) iv) calculate GNI…….

a) Rs 62000

b) Rs 62400

c) Rs 64300

d) Rs 64400

Ans: D

Solutions : gross national income

=GDP at market prices+taxes less

subsidies on production and import( Net

receivable from abroad)+compensation of

employee(Net receivable from abroad)

property income ( Net receivable from

Abroad) =62000+(2000-100)+200+300

=64400

5. Data of a A to Z co. is as follows all currency

million in Indian rupees.

Corporation tax : Rs 200

Income tax : Rs 300

Other taxes and duties :RS 100

Customs : RS 100

Union exercise tax : Rs 200

Service tax Rs 300

Tax of union territories : Rs 100

Interst receipt : Rs 300

Devident & profit : Rs 2000

External grant : Rs 100

Other non tax revenue : Rs 1000

Receipt of union territories : Rs 500

Trf to NCCD (National calamity : Rs 100

Contingency fund)

States Share : Rs 300

5 Qtn i) calculate Net Tax revenue of A to Z

co….

a) Rs 1300

b) Rs 900

c) Rs 1200

d) Rs 1000

Ans : b Solutions: Net Tex Revenue

=Gross tax revenue- NCCD transferred to the National

Calamity Contingency fund- state share

Gross tax revenue = Corporation Tax+ Income tax+other

tax & duties+costoms+union excise duties+service Tax+

taxes on union territories

=200+300+100+100+200+300+100

Gross Tax Rrvenue=1300

=1300-100-300

=900

Qtn5 ii) Calculate total Revenue Receipt of A

to Z country..

a) Rs 4000

b) Rs 4800

c) Rs 4500

d) Rs 4200

Ans:b Rs 4800

Total revnue receipt

=Net Tax revenue+total non tax revenue

Calculate first NTR=GTR-NCCD-State share

Already calcluted in previous qtn i.e Rs 900

Total Non tax revenue=interst

receipt+Dividend & profit+External

grants+other Non-Tax revenue+Receipt of

union territories=300+2000+100+1000+500

=3900

Hence Net tax revenue=900+3900

=4800

06. data of abc country….

Recoveries of loan & advance Rs 1000

recoveries of short term loans and advances Rs300

from states and loans to govt servents

Misc capital receipt Rs 200

Market loans Rs 300

Short term borrowings Rs 500

External assistance (Net) Rs 200

Securities issued against small savings Rs 200

State provident fund Rs 100

Other receipts (Net) Rs 400

Total non tax revenue Rs 3000

Net tax revenue Rs 1000

Draw down cash balance Rs 2000

@total revenue receipt=net tax revenue+Total non

tax revenue

6 a) calculate capital receipt………

A)Rs 1200

B) Rs 900

C) Rs 2600

D) Rs 1700

Ans: c

Capital receipt =Non debit receipt+Debt receipt

First calculate NDR=Recoveries of loan&

advances(duduct recoveries of short term

loans & advance from state and loans to govt

sarvents)+MISC Capital receipts

=1000(-300)+200

NDR=900

Than Debt receipt= market loans+Short term

borrowings+External assistance(NET)+Securities

issued 3against Small savings+other

Receipts(Net)

=300+500+200+200+100+400

=1700

Capital receipt=900+1700

=2600

6 b). calculate total receipt…..

a) Rs 4600

b) Rs 4900

c) Rs 8000

d) Rs 8600

Ans is :d Rs 8600

@total revenue receipt=net tax revenue+Total non

tax revenue

Total recepipt=Total Revenue receipt+capital

receipt+drawdown of cash bal

=(3000+1000)+2600+2000

=8600

6 c) calculate financing of fiscal deficit…

a) Rs 2000

b) Rs 3700

c) Rs 2400

d) Rs 4600

Ans : b

solution

Financing of fisical deficit=Debt

receipt+Dwar-down of cash bal

Debt receipt= market loans+Short term

borrowings+External assistance(NET)+Securities

issued 3against Small savings+other

Receipts(Net)

=300+500+200+200+100+400=1700

Financing of fisical defict=1700+2000

=3700

MODULE-B

7. Mr ram wants to have Rs 20000 after a

year how much he should deposit in a bank to

get this amount if the prevailing rate of interest

is 9% p.a.

a) 17896

b)18104

c)18224

d)18348

ans : d 20000/1.09

8. Mr Amit purchased a property for Rs 8 lac .

he has been assured to get Rs 10 lac, after one

year at 9% interest rate. What is the net

present value of the poperty based on this

assured return.

a) Rs. 117400

b)Rs. 118300

c) Rs. 119200

d) Rs. 120100

Ans : a 1000000/1.09=917431-80000= 117400

9. Mr Raj decided to deposited Rs. 5000 ( at

end of the year) for 10 yr . how much amt he

will get if the interest rate of is 5% p.a.

a)62890

b)62980

c)68920

d)69820

all value in Rs.

Formula future value end of the period

annuties

Ans: a Fv=a/r (1+r)n-1 =5000/.05(1.05)10-

1=62890

10. . MR. ram sons is expected to join a

professionnal course in 03 yr from now and

he would be needing a sum of Rs 3lac at that

time as admission fee. Mr Ram wants to save

the amt in annual instalments and prevailing

interest rates are 5% How much amt he should

deposit per annum.

a)95163

b)95631

c)953631

d)96531

Ans: A

Thus annuity given the future value

=FV*r/(1+r)n-1 =300000*.05/(1.05)3-1=

95177 Appox

11. worked out the discount factor for Re 1

to be received at the end of two yr with

prevalent 8% .

a)0.890

b)0.873

c)0.857

D)0.842

Ans: c =1/(1+r)n= 1/(1.08)square2

12.An investment at 10% is compounded

monthly, what shall be the effect interst rate

for this.

A)10%

b)10.25%

c)10.47%

d)10.5156%

ans: c =(1+.10/12) sqare 12-1

semi annually devide by 2

monthly devide by 12

for daily by 365

continuous equare 10-1

13.A console bond of Rs 10000 is issued at

6%Coupon current interst rates and 9%. Find

out the current value of the console bond .

a)7660

b)6760

c)6670

d)6706

And :c = 10000*.06=6000/.09=6670

14 please explain this as it was asked in last time caiib exams

Q A bag contains 7 yellow balls and 5 red balls. One ball is taken from the bag at random and is not

replaced. A second ball is taken from the bag. Determine the probability that

Q-1 What is Probability of both balls are red....

1) 42/132 2) 20/132 3) 21/132 4) 35/132

Q-2 What is Probability of both balls are the same colour.

1) 42/132 2) 20/132 3) 62/132 4) 70/132

Q-3 What is Probability of both the balls are different colours.

1) 42/132 2) 20/132 3) 21/132 4) 70/132

Q-4 What is Probability of at least one ball is yellow.

Solutions:-1) 120/132 2) 112/132 3) 70/132 4) 35/132.Chat Conversation En

o

Hitesh Kothari q-1 20/132 , Q2 62/132, q3 70/132, q4 112/132

Q 15 If debt equity ratio of a unit is 2:1, current Liabilities are Rs. 8 Lakh, equity Rs. 4 Lakh, the total assets of the firm will be...?

As equity z givn debt vl b 8 lacs so total assets= debt +equity +c.liab i.e 8+4+8

Q 16 Total asstes of a company are Rs. 200 lakh. Debt Equity Ratio is 2:1 and current liabilities are Rs. 56

Lakh. Equity of the company will be....?

ans Total long term liab z 144 so equity z 1/3rd

q 17 If current Ratio of a unitis 1.25:1, current assets are 5 Lakh, quick ratio is 1:1 Presuming there are

noprepaid exp, inventry will be...?

Ans 500000/1.25 (quick ratio=ca-inv/cl

Ans :10000

Q 18 Current Ratio is 2:5:1 and current assets are Rs. 30 Lakh. NWC will be.....? calculate howTop of

Form

Ans;18 lacs. 24 lacs c.a. & 6 lacs cl 24_6=18 lacs nwc

19 Qtn 91 days treasury bills maturing on 06.04.2013 purchased on 18-02-2013 rate quoted is Rs 99.1489

per Rs 100 this yield of ths T bill is

a)6.8%

b)4.90%

c)5.70%

d) none of the above

please also explain your ans

100-99.14/99.14*365/remain days(47 or 48)

ans is 6.98 APROX

20. How many years it will take under rule 72 for an investment to become quadruple

In value , if th ROI is 12%.

a) 6 year

b) 12 year

c) 16 year

d) 20 year

ans: 12

21. What is the easiestway to calculate value of any investment will become half, if inflation rate is 7% the value will become half in how many year.(under rule 70)

a) 6 year

b) 10 year

c) 12 year

d) 16 year

ans: b under rule 70

22. 6% coupon rate of bond of rs 1000 what will be the amount we will get after 03 year if compounded return is 5.6%.

a) 1010.77

b) 1010.91

c) 1177.58

d) 1237.58

e) Non of these

ans : a

23. 6% coupon rate of bond of rs 1000 what will be the amount we will get after 03 year if the coupon payment become half yearly than, compounded return is 5.6% only

a) 1010.77

b) 1010.91

c) 1177.58

d) 1237.58

e) Non of these

ans: b

24. Mr. X is expecting a cash flow of Rs 10 lac at the end of 01 year for his investment of Rs 8 lac in a housing property , at 08% discount rate what is the Net present value.

a) 92592

b) 125926

c) 740740

d) 125926

e) None of these

ans: d ( present value 100000/108= 925926 than NPV= PV- investment =925926-800000= 125926 ans

25. bonds and debentures are an example of………………

a) term loan

b) lump-sum payment loan

c) balloon repayment laon

d) interest demand laon

e) non of these

ans:c

26. A constant flow paid or recived at aregular intervals for ever is known as.

a) annuity

b) peretuity

c) growing annuity

d) growing perpetuity

ans: b

27. what is present value of Rs 180000 which is paid every year over a period assuming the rate of interest at 12%

a) 64860

b)646880

c) 648860

d) 684860

e) non of these

ans: c 9 pv=A((1+r)power n -1))/r(1+r)power n= 180000(1+.12)power 5- 1/.12(1+.12)power 5= 137221/.2114=648860

28. On 8%, 5 year bond of Rs 10000, the investors gets annually as……..

A) 80 int

b) 80 coupon

c) 800 discount

d) 800 coupon

ans: d

29. regular repayment in the from of interst on a bond is called……

a) discount

b) interst

c) coupon

d) dividend

e) installment

f) EMI

ans: c

30. depending upon the current interest rates ,the face value of which of the following types of bonds changes .

a).floating rate bonds

b) negotiable bonds

c) Zero coupon bonds

d) convertible bonds

ans: b