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Practice Exercise 7

Direction (1-5): The bar graphs give the percentage increase in income and expenditure of
various types of banks during a period of 2 years. Refer to the graphs to answer the questions
that follow.
% increase in incom e over the last year
50
45
40
35
30
25
20
15
10
5
0

1998-99

1999-00

% increase in expenditure over the last year

44
37

15

17

20
14
9

12

50
45
40
35
30
25
20
15
10
5
0

42
1998-99

13 12

44

1999-00

15

17
11
4

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KUNDAN

PSU Banks

Old Pvt
Banks

New Pvt
Banks

Foreign
Banks

PSU Banks

Old Pvt Banks

New Pvt
Banks

Foreign
Banks

1. Let the income of the PSU Banks in 1997-98 be equal to Rs 500000 crores. If the expenditure of
PSU Banks in 1999-00 is equal to the income of PSU Banks in 1997-98, then the income of PSU
Banks in 1999-00 will be what per cent more than the expenditure of these Banks in 1998-99?
1) 32%
2) 44%
3) 56%
4) 64%
2. If the expenditure of Foreign Banks in 1997-98 is equal to their income in that year and is equal
to Rs 30000 crores then, in 1999-00, what is the difference in income and expenditure for the
foreign Banks?
1) Rs 1500 crores
2) Rs 2000 crores
3) Rs 15000 crores
4) Rs 20000 crores
3. Let the income of New Pvt. Banks in 1998-99 be Rs 4000 crores. If the expenditure of New Pvt.
Banks in 1998-99 is the same as their income then the difference in incomes of New Pvt. Banks
in 1998-99 and 1999-00 will be what per cent of the difference of expenditures of New Pvt. Banks
in 1998-99 and 1999-00?
1) 52%
2) 76%
3) 84%
4) 118%
4. In 1998-99, if the income of PSU Banks is twice the expenditure of Foreign Banks then what will
be the ratio of the income of PSU Banks to the expenditure of Foreign Banks in 1999-00?
1) 1 : 2
2) 21 : 10
3) 5 : 1
4) 1 : 5
5. In 1998-99, if the income of Foreign Banks is four times their expenditure, then what will be the
ratio of the income to the expenditure of the Foreign Banks in 1999-00?
1) 1 : 4
2) 4 : 1
3) 5 : 1
4) 1 : 5

Directions (Q. 6-9): The bar graph shows the oil reserves and the line graph shows the estimated number of years for which the reserves will last at the present oil extraction rates for
various countries. The pie-chart shows the % distirbution of the oil reserves regionwise. Refer to
the following graphs to answer the questions that follow.

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Reserves by region %

Africa
7%

Asia-Pacific
4%

Latin America
9%
Europe
8%

North America
6%

Middle East
66%

6. What is the ratio of oil extracted by Saudi Arabia to that by Mexico per year (in billion barrels)?
1) 0.4
2) 2.67
3) 3.16
4) 15.23
7. If the oil reserves held by Saudi Arabia form 32% of the share of Middle East countries then what
percentage share of global oil reserves is in Iraq?
1) 20.92%
2) 16.82%
3) 12.08%
4) 9.6%
8. What will be the difference between countries extracting maximum amount of oil to those extracting minimum amount of oil? (in billion barrels)
1) 2.57
2) 2.85
3) 2.14
4) 1.98
9. The ratio of the number of years for which the reserves will last to the total available reserves in
billion barrels is maximum for
1) USA
2) Saudi Arabia
3) Azerbaizan
4) Iraq

Directions (Q. 10-15): These questions are based on the following table.
Expected market of four brands of automobiles in the four metros
(In terms of percentage of number of units sold)
M umbai

Delhi

Calcutta

M adras

1996

1997

1996

1997

1996

1997

1996

1997

PAL-Peugeot

32

27

38

35

40

42

26

35

DCM-Daewoo

42

35

33

26

31

28

41

33

Opel Astra

19

27

24

32

23

23

29

26

Mercedes-Benz

11

10. What will be the average percentage increase in the market share of Opel Astra in the metros?
1) 25%
2) 9.5%
3) 16%
4) 5.5%
11. PAL-Peugeots sales in the four metros have been
I. always more than those of Opel Astra.
II. always maximum in Calcutta.
III. always increasing.
1) I only
2) I and II only
3) I, II and III
4) II only
12. If the combined sales of all four is expected to go from 11000 to 12500 in Mumbai between 1996
and 1997 the increase in Mercedes-Benzs revenues will show a _____ per cent growth, if the price
were to go up by 12% in 1997.
1) 10%
2) 50%
3) 75%
4) 100%
13. Given that the cost of a PAL-Peugeot and a DCM-Daewoo is same, an Opel Astra costs twice as
much as a PAL-Peugeot, and a Mercedes-Benz is twice as costly as a PAL-Peugeot, the net revenue from the four metros was maximum for
1) PAL-Peugeot and DCM-Daewoo
2) Opel Astra
3) Mercedes-Benz
4) Cannot be answered
14. If in 1996 sales were 11000, 10000, 9000 and 8000 respectively in the four metros, then the
following are almost equal:
1) PAL-Peugeot sales in Mumbai and Calcutta
2) DCM-Daewoo sales in Delhi and Madras
3) Opel-Astra sales in Mumbai and Madras
4) Mercedes-Benz sales in Delhi and Calcutta
15. The combined share of Opel Astra in Mumbai and Madras is 22% . The sales volume of Opel Astra
in Mumbai is how many times that in Madras?

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1)

7
3

2)

3)

8
5

4) None of these

5
4

Directions (Q. 16-20): These are based on the following pie-chart given below:
Contributions of different companies to the turnover of Prudential Group of companies
Prudential
Services
16%

Prudential
Services
14%

Prudential
Bank
24%

Prudential
Finance
19%
Prudential
Consultants
8%

Prudential
Bank
23%

Prudential
Finance
26%
Prudential
Insurance
33%

Prudential
Consultants
6%

Prudential
Insurance
31%

1990
1995
1990: Prudential Insurance turnover was Rs 27 bn.
16. If the turnover of Prudential Insurance remained almost unchanged, the group turnover in 1995
was almost Rs
1) 87 bn
2) 93 bn
3) 90 bn
4) 89 bn
Answer the questions 17 to 20 with reference to the data in question 16.
17. The turnover of Prudential Finance increased by
1) 20%
2) 30%
3) 45%
4) 60%
18. If 40% of Prudential Consultants revenue came from project exports, its income from domestic
activity was (in 1990)
1) 1 bn
2) 2 bn
3) 3 bn
4) 4 bn
19. The number of companies whose turnover decreased in 1995 as compared with 1990 was
1) 1
2) 2
3) 3
4) 4
20. The company which showed the biggest percentage drop in turnover is
1) Prudential Consultants
2) Prudential Insurance
3) Prudential Services
4) Prudential Bank

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Answers and explanations

1. 4; Income of PSU Banks in 1997-98 = Rs 500000 crores


Income of PSU Banks in 1998-99 = 500000 1.15 = Rs 575000 crores.
And income of PSU Banks in 1999-00 = 575000 1.17 = Rs 672750 crores.
Now, expenditure of PSU Banks in 1999-00 = Rs 500000 crores.
500000
= Rs 409836 crores.
1.22
Income is more than expenditure by 672750 - 409836 = Rs 262914 crores.

Expenditure of PSU Banks in 1998-99 =

(672750 409836)

100

262914

100 64.15%
409836
409836
2. 2; Here, expenditure of Foreign Banks in 1997-98 = Rs 30000 crores.
Expenditure of Foreign Banks in 1998-99 = 30000 1.04 = Rs 31200 crores.
Expenditure of Foreign Banks in 1999-2000 = 31200 1.11 = Rs 34632 crores.
And income of Foreign Banks in 1997-98 = Rs 30000 crores.
Income of Foreign Banks in 1998-99 = 30000 1.09 = Rs 32700 crores.
Incomes of Foreign Banks in 1999-2000 = 32700 1.12 = Rs 36624 crores.

Required % =

required difference = 36624 - 34632 = Rs 1992 crores


3. 3; Income of New Pvt. Banks in 1998-99 = Rs 4000 crores
Income of New Pvt. Banks in 1999-00 = 4000 1.37 = Rs 5480 crores
Difference = 5480 - 4000 = Rs 1480 crores
Again, expenditure of New Pvt. Banks in 1998-99 = Rs 4000 crores
Expenditure of New Pvt. Banks in 1999-00 = 4000 1.44 = Rs 5760 crores
Difference = 5760 - 4000 = Rs 1760 crores

1480

100 = 84
1760
4. 2; Let the expenditure of Foreign Banks in 1998-99 = Rs x crores
Then income of PSU Banks in 1998-99 = Rs 2x crores
Then income of PSU Banks in 1999-00 = 2x 1.17 = Rs 2.34x crores
And expenditure of Foreign Banks in 1999-00 = x 1.11 = Rs 1.11x crores
Required percentage =

2.34x 2.1
Required ratio = 1.11x 1 = 21 : 10.
5. 2; Let expenditure of Foreign Banks in 1998-99 = P
Then income of Foreign Banks in 1998-99 = 4 P
And income of Foreign Banks in 1999-00 = 4P 1.12 = 4.48 P
Expenditure of Foreign Banks in 1999-00 = P 1.11 = 1.11 P

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4.48P 4
required ratio = 1.11P 1
6. 2; Reserves of oil held by Saudi Arabia is for 88 years.

It means Saudi Arabia extracts

264
88

3 billion barrels of oil per year.

28

Similarly, for Mexico

25

= 1.12 billion barrels of oil per year; thus required ratio is

7. 4; For Saudi Arabia percentage of global oil reserves is

32

100

112
.

2.67 .

66 = 21.12

2112
.

120 = 9.6.
264
8. 2; The oil extraction of Saudi Arabia is 3 billion barrels per year while that of Azerbaijan is 0.15
billion barrels per year. Hence the difference will be 2.85 billion barrels.
9. 3; The ratio of the number of years for which the reserves will last to the total available reserves

For Iraq it would be

170
34 .
5
10. 3; Average increase in market share of Opel Astra:

in billion barrels is maximum for Azerbaijan, ie

Increase in Bombay =

27 19
100 = 42%
19

Similarly, Increase in Delhi = 33%


Increase in Calcutta = 0%
Increase in Madras = = -11%
Thus average increase = (42 + 33 + 0 11)/4 = 16% .
11. 4; Only statement II holds good as of all the metro sales of PAL, it is maximum in Calcutta.
12. 4; Sales of Mercedes-Benz in 1996 = 7% of 11000 = 770 and in 1997 = 11% of 12500 = 1375. Since
the prices increase by 10% , revenue in 1997 will be 1.12 1375 = 1540; a growth of 100% from
770.

13. 4; As the number of units sold is not known, the question can not be answered.
14. 2;
PAL

Mumbai: 11000 32% = 3520

Calcutta: 9000 40% = 3600

DCM

Delhi: 10000 33% = 3300

Madras: 8000 41% = 3280

Opel

Mumbai: 11000 19% = 2090

Madras: 8000 29% = 2320

Mere

Delhi: 10000 5% = 500

Calcutta: 9000 6% = 540

The closest is the sales of DCM.


15. 1; 22% is the weighted mean of percentage sale of Opel Astra in Mumbai and Madras respectively.
Mumbai
Madras
19%
29%
22%
7
3
Required ratio of sales volume = 7 : 3.
7
Sales volume in Mumbai is 3 times that in Madras.
16. 1; Prudential Insurance turnover = Rs 27 billion, which forms 31% in 1995.

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Thus total turnover in 1995 =

100
27 = 87.09 = 87 bn.
31

17. 3; In 1990, turnover of Prudential Insurance = 27 bn, which forms 33% of total turnover.
Total turnover =

100
27 = 81.8 bn. = 82 bn.
33

Prudential Finance turnover increased by (26% of 87 - 19% of 82)/19% of 82 = 45% .


18. 4; In 1990, income of Prudential Consultants =

8
82 = 6.56 bn
100

Thus domestic income = 60% of 6.56 = 3.93 = 4 bn.


19-20: Decrease of Prudential Consultants =

Decrease of Prudential Services =


19. 2

6.56 5.22
100 20%
6.56

16% of 82 14% of 87
7% drop.
16% of 82

Thus there is decrease in turnover of Prudential Consultants and Prudential Services only.
20. 1