Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer:<br>Assertion (A) The nominal interest rate comprises of a real interest rate and an expected rate of inflation and it adjusts when the inflation rate is expected to change. Hence, in the perfect international capital markets, real rate of returns are equal in the two countries.<br>Reason (R) The international fisher effects states that the nominal interest rate differential must be equal to the expected inflation rate differential In the two countries.

Direction-The question have two statements.
One is labelled as Assertion (A) and the other as Reason (R). You have to examine both the statements carefully and decide whether Assertion (A) and Reason (R) separately are true and if so then reason is the correct explanation of the assertion. Mark these items on the answer sheet.
Assertion (A): Interest payable on working capital should be treated as an item of operating expenses.
Reason (R): Interest is the cost of capital used in the business.

A

Both A and R are correct and R is the correct explanation of A

B

Both A and R are correct and R is not the correct explanation of A

C

A is correct but R is wrong

D

A is wrong but R is correct

The question below consists of a set of labelled sentences. Out of the four options given, select the most logical order of the sentences to form acoherent paragraph.
P: The recent reduction in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view
of the turbulence in financial markets and the low returns in treasuries.
Q: The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce volatility in commodity markets.
R: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices.
S: The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items.

A

PRQS

B

SPQR

C

QSPR

D

RPQS

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A) A price reduction leads to an increase in the quantity demanded of the commodity.
Reason (R) It results from price effects comprising income and substitutions effects which are always positive.

A

Both (A) and (R) are correct and (R) is the right explanation of (A)

B

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is incorrect

D

Both (A) and (R) are incorrect

Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): Globalization refers to the free cross-border movement of goods, services, capital, information and people
Reason (R): Countries are consistently evolving innovative marketing barriers that are not WTO compatible
In the light of the above statements, choose the correct answer from the options given below

A

Both (A) and (R) true and (R) is the correct explanation of (A)

B

Both (A) and (R) true but (R) is NOT the correct explanation of (A)

C

(A) is true but (R) is false

D

(A) is false but (R) is true

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer:
Assertion (A) Article 1 described India as a 'Union of States.'
Reason (R) The term 'Union of States' was used to curb sub-nationalism and strengthening unity and integrity of the country.

A

Both A and R are true and R is the correct explanation of A

B

Both A and R are true, but R is not the correct explanation of A

C

A is true, but R is false

D

A is false, but R is true

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A) Entrepreneurial innovation and experimentation constantly destroy the old and introduce new equilibria, making possible higher standards of living.
Reason (R) Markets do not passively tend towards equilibrium until profit margtns are wiped out.

A

Both (A) and (R) are correct and (R) is the correct explanation of (A)

B

Both (A) and (R) are correct, but (R) is not correct explanation of (A)

C

(A) is correct, but (R) is incorrect

D

Both (A) and (R) are incorrect

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A) Growing proportion of the world output is traded internationally, causing faster growth of trade among nations.
Reason (R) This situation is bringing world economic integration, which is reinforced by cross border capital flows and regional blocks.

A

Both (A) and (R) are correct and (R) is the right explanation of (A)

B

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is incorrect

D

Both (A) and (R) incorrect

Consider the following statements.
1. A profit maximising monopolist in different markets will adjust his sales in the two markets, so that his MR in each market just equals his MC.
2. A profit maximising monopolist in separate markets will not adjust his sales.
3. A profit maximising monopolist in separate markets will adjust his sales in the two markets, so that his MR in each market will greater than MC.
4. A profit maximising firm in separate markets will adjust his sales in each market so, that his MR is less than MC.
Which of the statement(s) given above is/are correct?

A

Both 1 and 4

B

Only 1

C

Only 4

D

Both 1 and 2

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A): Purchase decisions are not based on how customers perceive prices but on the marketer's stated price.
Reason (R): Customers may have a lower price threshold, below which prices signal inferior or unacceptable quality, and an upper price threshold where the product appears not worth the money.

A

Both (A) and (R) are correct and (R) is the right explanation of (A)

B

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C

Both (A) and (R) are incorrect

D

(A) is incorrect, but (R) is correct

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer.
Assertion (A) There exists excess capacity of the production for the firms if these incur losses.
Reason (R) Their production level has to remain below their economic capacity level.

A

(A) is correct, but (R) is incorrect

B

(A) is incorrect, but (R) is correct

C

Both (A) and (R) are correct and (R) is the right explanation of (A)

D

Both (A) and (R) are correct, but (R) is not the right explanation of (A)