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Management Aptitude Test (MAT) Practice Test

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Exam Code: AIMA MAT
Exam Name: Management Aptitude Test (MAT)
Questions in exam: 5 sections- each with 30 questions- total questions = 150
Time Allotted: 120 minutes (i.e. 2 hours)
Correct answer = +1 mark
Incorrect answer = –0.25 mark (negative marking)
Unanswered questions = 0 marks (i.e. no penalty)
Passing Marks: The scaled / composite score is used for comparison and percentile. Sources talk of scaled scores and composite values- e.g. between 200 and 800- etc.

Language Comprehension
- studying Comprehension (RC)
- Inference
- main idea
- tone/author's intent
- supporting details
- vocabulary in context
- fact vs. opinion
- abstract/fictional narratives (e.g.- historical events like French Revolution impacting society).
- Vocabulary
- Synonyms/antonyms
- idioms/phrases
- one-word substitutions
- fill in the blanks
- word analogies
- homonyms/homophones.
- Grammar & Usage
- Sentence correction (subject-verb agreement- tenses- prepositions)
- error spotting
- active/passive voice
- direct/indirect speech-
- clauses (conditional- relative)
- Verbal Ability
- Para-jumbles (sentence rearrangement)
- sentence completion
- odd one out
- cloze test

Intelligence & Critical Reasoning
- Critical Reasoning
- Assumptions
- strengthening/weakening arguments
- inferences
- cause-effect
- paradoxes
- binary logic (statements & conclusions)
- Verbal Reasoning
- Syllogisms (all/some/no statements- Venn diagrams)
- analogies
- blood relations (family trees)
- coding-decoding (letter/number shifts)
- Non-Verbal Reasoning
- Series (number/letter patterns)
- seating arrangements (linear/circular)
- direction sense
- clocks/calendars
- Analytical Puzzles
- Input-output (machine patterns)
- data sufficiency in reasoning
- assumptions in sequences

Mathematical Skills
- Arithmetic
- Percentages (increase/decrease)
- profit & loss (marked price- discount)
- ratios & proportions
- averages
- mixtures/alligations
- time-speed-distance (relative speed- boats/streams)
- time & work (pipes/cisterns- work efficiency)
- Algebra
- Linear/quadratic equations
- inequalities
- functions
- logarithms
- sequences/series (AP/GP)
- polynomials
- Geometry & Mensuration
- Lines/angles
- triangles (congruence- similarity)
- circles (chords- tangents)
- coordinate geometry
- 2D/3D shapes (volume/surface area of cube- cylinder- cone)
- Number Systems & Modern Math
- HCF/LCM
- divisibility
- remainders
- sets (union/intersection)
- permutations/combinations (factorial- binomial)
- probability

Data Analysis & Sufficiency
- Data Interpretation (DI)
- Tables (tabular data- totals/averages)
- bar/line graphs
- pie charts (angular/percentage representation)
- caselets (paragraph-based data)
- mixed charts
- Data Sufficiency
- Two-statement problems (Statement I/II alone or together sufficient)
- quantitative comparisons
- Data Comparison
- Growth rates
- percentages from visuals
- missing data estimation

Economic & Business Environment
- Current Affairs (Business/Economy)
- Fiscal/monetary policies (Repo Rate- CRR- inflation)
- government schemes (e.g.- Atmanirbhar Bharat- PLI)
- economic surveys/budgets
- global events (e.g.- trade wars- GDP growth)
- Business & Corporate
- Who's Who (CEOs- awards like Padma/Bhagwan Das)
- mergers/acquisitions
- stock markets (Sensex/Nifty indices)
- branding/marketing concepts
- Static GK
- Indian Constitution (articles- amendments)
- geography (major ports- rivers)
- history (economic reforms 1991)
- science/tech (inventions- awards like Nobel in Economics)
- International & Miscellaneous
- International orgs (WTO- IMF roles)
- sports/film awards
- taxation/duties (customs- excise)

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Question: 1
A researcher notes that a certain bird species migrates earlier in seasons when the average temperature
rises. What can be inferred about the relationship between temperature and migration?
A. Temperature changes have no effect on migration timing
B. Migration depends entirely on rainfall
C. Higher temperatures cause earlier migration
D. Migration timing causes temperature changes
Answer: C
Explanation: The passage implies a correlation where increased temperatures precede earlier migration,
suggesting causation that higher temperatures trigger earlier migratory behavior.
Question: 2
An article states that companies implementing flexible work hours have seen a rise in employee
satisfaction scores but does not mention productivity changes. What is a reasonable inference?
A. Flexible hours reduce productivity
B. Productivity has declined
C. Flexible hours increase satisfaction
D. Satisfaction and productivity are unrelated
Answer: C
Explanation: The text explicitly notes increased satisfaction post flexible work implementation, so it is
reasonable to infer satisfaction increases due to the flexible hours. There is no information suggesting
productivity changes.
Question: 3
The summary notes that novels with unreliable narrators often leave readers questioning the validity of
events. What can be inferred about such narrative techniques?
A. They clarify all story details
B. They encourage trust in the narrator
C. They cause readers to doubt the story
D. They simplify the plot structure
Answer: C
Explanation: Unreliable narrators create ambiguity or doubt, prompting readers to question story
accuracy. Simplification contrasts typical effects of unreliable narration, which generally complexifies
understanding.
Question: 4
A report cites that increasing urban green spaces has lowered city temperature by 2 degrees on average
during summer months. What conclusion can be inferred?
A. Green spaces have no effect on temperature
B. Green spaces contribute to cooling urban areas
C. Temperature changes caused planting of green spaces
D. Urban areas should reduce green spaces
Answer: B
Explanation: The data supports an inference that green spaces help reduce urban temperatures.
Question: 5
An economist finds that nations with higher education rates tend to have lower unemployment. Which
inference is justified?
A. Higher education increases unemployment
B. Higher education correlates with lower unemployment
C. Unemployment causes education levels to rise
D. There is no link between education and unemployment
Answer: B
Explanation: The finding directly points to a correlation between higher education and lower
unemployment, indicating a relationship.
Question: 6
A study finds employees working remotely submit reports later than those onsite. Which inference can be
made?
A. Remote work causes earlier submissions
B. Onsite work delays reporting
C. Report submission times are unrelated to work setting
D. Remote work is linked with later report submissions
Answer: D
Explanation: The observation links remote work with delayed submissions, so it is reasonable to infer a
connection. Opposite or unrelated options lack support.
Question: 33
Climate migration, projected to displace 1.2 billion by 2050 per the Institute for Economics and Peace,
reconfigures urban demographies in counterintuitive ways. Coastal megacities like Miami and Dhaka face
inundation, yet paradoxically attract inflows as economic hubs, exacerbating slum proliferation.
Adaptation models from the IPCC's 2024 synthesis emphasize "managed retreat"�relocating
communities preemptively�yet implementation falters amid property rights entanglements and cultural
displacements. In sub-Saharan Africa, pastoralists' northward treks fragment biodiversity corridors,
inverting conservation paradigms that once prioritized static reserves. Economists posit that remittances
from urban migrants could fund rural resilience, with World Bank data showing a 15% uplift in adaptive
agriculture investments. Nonetheless, this fiscal silver lining obscures psychosocial tolls:
intergenerational trauma manifests in elevated PTSD rates among relocated cohorts, per UNHCR
longitudinal studies.
The passage suggests that managed retreat initiatives are hindered chiefly by:
A. Economic disincentives from remittance-dependent rural economies
B. Biodiversity disruptions from migratory patterns in Africa
C. Legal conflicts over land ownership and cultural heritage losses
D. Psychosocial health burdens on migrant populations
Answer: C
Explanation: The text directly attributes faltering implementation of managed retreat to "property rights
entanglements and cultural displacements," framing these as core legal and cultural barriers. While
economic, biodiversity, and psychosocial issues are discussed, they are consequences or separate
dynamics rather than primary hindrances to the strategy itself.
Question: 34
Synthetic biology's CRISPR-Cas9 revolution democratizes gene editing, yet unleashes a Pandora's box of
biosecurity perils. Dual-use research�therapeutic on the surface, weaponizable beneath�exemplifies the
dilemma: a 2026 DARPA-funded project engineered drought-resistant crops, inadvertently yielding
strains hyper-susceptible to mycotoxins that could amplify famine in adversarial breadbaskets. Regulatory
frameworks lag; the Biological Weapons Convention lacks enforcement teeth, while national biosafety
levels inadequately calibrate for garage-lab innovators. Ethicists invoke the precautionary principle,
advocating moratoriums on germline edits until societal consensus crystallizes, but innovators retort that
stasis stifles cures for orphan diseases. A Lancet commission warns that without global harmonization,
"biohacker bazaars" on dark web forums could proliferate designer pathogens, echoing the 2023 horsepox
synthesis that presaged synthetic smallpox.
It can be inferred that the author views current regulatory efforts as:
A. Sufficiently robust to prevent dual-use weaponization
B. Harmonized internationally to address biohacker risks
C. Overly restrictive, impeding vital medical advancements
D. Inadequate in scope and enforcement for emerging threats
Answer: D
Explanation: The passage critiques the lag in regulatory frameworks, noting the Biological Weapons
Convention's lack of enforcement and national biosafety levels' failure to address garage-lab risks,
alongside warnings of unharmonized global efforts allowing dark web proliferation. This implies
inadequacy without suggesting sufficiency, over-restriction (as stasis is a counterargument, not the
author's), or international harmony.
Question: 35
Algorithmic governance in smart cities promises efficiency�predictive policing curbing crime 22% in
Singapore's 2024 rollout�yet entrenches surveillance capitalism. Proprietary black-box models, opaque
to scrutiny, amplify biases: a ProPublica expos� revealed facial recognition systems misidentifying
minorities at 35% higher rates, perpetuating carceral loops. Democratic theorists decry this as "techno-
feudalism," where citizen data fuels corporate fiefdoms, eroding public sovereignty. Countermeasures like
the EU's AI Act mandate explainability audits, yet enforcement strains under transatlantic data flows.
Paradoxically, residents in Shenzhen report heightened trust in AI-mediated services, suggesting cultural
acclimation to paternalistic tech, but longitudinal surveys from Pew indicate eroding privacy norms
correlate with civic disengagement.
The passage implies that cultural adaptation to algorithmic governance may lead to:
A. Strengthened democratic oversight through explainability mandates
B. Enhanced enforcement of transatlantic data regulations
C. Reduced bias in proprietary models via resident feedback loops
D. Diminished civic participation due to privacy norm erosion
Answer: D
Explanation: The Pew surveys cited link eroding privacy norms from AI adaptation to civic
disengagement, implying that acclimation, as seen in Shenzhen, fosters reduced participation rather than
strengthening oversight, reducing bias, or enhancing enforcement, which are presented as aspirational
countermeasures facing challenges.
Question: 115
Which tone best fits an author who discusses the rapid evolution of social media with excitement while
cautioning about misinformation?
A. Jubilant and naive
B. Enthusiastic yet prudent
C. Dismissive
D. Pessimistic
Answer: B
Explanation: Mixing excitement about evolution with caution about risks yields an enthusiastic yet
prudent tone.
Question: 116
If a passage argues that innovation thrives on both freedom and regulation, which statement aligns best
with the main idea?
A. Innovation requires no oversight
B. Regulation hinders innovation completely
C. Freedom alone guarantees progress
D. Innovation succeeds with balanced governance
Answer: D
Explanation: The call for both freedom and regulation supports a balanced governance model for
innovation.
Question: 117
An author's use of anecdotal evidence about entrepreneurial failures suggests what intent?
A. To entertain with stories
B. To fabricate data
C. To illustrate broader lessons
D. To ignore statistics
Answer: C
Explanation: Anecdotes serve to personalize and illuminate larger concepts or lessons within a
discussion.
Question: 118
What is the most likely main idea of a passage that explains the challenges of sustainable development
with examples?
A. Sustainable development is easy
B. Technology solves all issues
C. Development inevitably harms environment
D. Challenges must be addressed collaboratively
Answer: D
Explanation: Highlighting challenges with examples usually signals a call for cooperative solutions.
Question: 119
If an author writes with a critical tone about corporate lobbying, what might be the author's intent?
A. To expose undue influence
B. To support lobbying efforts
C. To neutrally report activities
D. To celebrate business power
Answer: A
Explanation: A critical tone about lobbying likely aims to reveal and question its excessive influence
rather than endorse it.
Question: 120
In the passage, the author argues that the proliferation of digital media has fundamentally altered societal
perceptions of privacy, often blurring the lines between public and private spheres. What specific
evidence does the author provide to support the claim that individuals are increasingly desensitized to
privacy concerns?
A. Growing acceptance of data-sharing practices on social platforms
B. Increased government surveillance programs
C. Proliferation of encrypted communication tools
D. Rising popularity of offline social gatherings
Answer: A
Explanation: The author supports the claim of desensitization to privacy concerns by highlighting the
growing acceptance of data-sharing practices on social platforms. The passage details how users willingly
share personal information, such as location data and preferences, on social media, often without fully
understanding the implications. This behavior reflects a societal shift where individuals prioritize
convenience and connectivity over safeguarding personal data, thus illustrating desensitization to privacy
issues.
Question: 175
A passage reads: "The CEO's magnanimous gesture impressed stakeholders." What does "magnanimous"
mean?
A. Arrogant
B. Generous
C. Timid
D. Indifferent
Answer: B
Explanation: "Magnanimous" means very generous or forgiving, especially toward a rival or less
powerful person.
Question: 176
The term "paradigm shift" appears in a technological context. Which meaning is most accurate?
A. A minor change
B. A failed attempt
C. A fundamental change in approach
D. A gradual decline
Answer: C
Explanation: A "paradigm shift" is a fundamental change in the basic concepts and practices of a field.
Question: 177
A study refers to "a contingent relationship between variables." What does "contingent" imply?
A. Independent
B. Random
C. Permanent
D. Conditional
Answer: D
Explanation: "Contingent" means dependent on or subject to certain conditions.
In a marketing context, the phrase "customer churn remains a vexing problem" is mentioned. What does
"churn" mean?
A. Customer retention
B. Customer satisfaction
C. Customer turnover
D. Advertising reach
Answer: C
Explanation: "Churn" refers to the rate at which customers stop doing business with a company.
Question: 179
In a studying passage, the author states "the benevolent dictator enacted reforms swiftly." What does
"benevolent" mean here?
A. Malevolent
B. Kindly
C. Indifferent
D. Authoritarian
Answer: B
Explanation: "Benevolent" means well-meaning and kindly, implying that the dictator's intentions were
positive.
Question: 180
In discerning facts from opinions in a narrative about the French Revolution, which characteristic
primarily distinguishes a fact?
A. It expresses the writer's feelings about the Revolution
B. It includes predictions about future revolutions
C. It can be Checked through evidence or documentation
D. It uses emotionally charged language
Answer: C
Explanation: A fact must be verifiable through evidence or documentation, making it objective and
demonstrable, unlike opinions which are subjective and express feelings or beliefs.
Question: 181
A passage states, "The French Revolution heralded the end of monarchy and the rise of republican
ideals." What kind of statement is this?
Question: 365
Which pair best completes the analogy?
"Integrity : Honor :: Clarity : ------"
A. Distinction
B. Justice
C. Obscurity
D. Transparency
Answer: D
Explanation: "Integrity" is closely linked to "Honor" just as "Clarity" is associated with "Transparency."
Both pairs show qualities related to reliability and openness.
Question: 366
Choose the homophone to correctly complete the sentence:
"The artist's ------ was admired by many for its intricacy."
A. Pallet
B. Palette
C. Palate
D. Paillet
Answer: B
Explanation: "Palette" is a board used by painters to hold and mix colors. "Pallet" is a flat surface;
"Palate" relates to taste buds; "Paillet" is not common, so "Palette" fits.
Question: 367
Complete the analogy:
"Acumen : Insight :: Valor : ------"
A. Skill
B. Bravery
C. Intelligence
D. Wisdom
Answer: B
Explanation: "Acumen" signifies sharp insight; "Valor" stands for courage or bravery. Both pairs
associate a trait with its evident manifestation.
Question: 368
Select the word that completes the analogy:
"Pristine : Polluted :: Benevolent : ------"
A. Compassionate
B. Kind
C. Generous
D. Malevolent
Answer: D
Explanation: "Pristine" (pure) is opposite to "Polluted." Similarly, "Benevolent" (kind) and "Malevolent"
(evil) are opposites.
Question: 369
Choose the correct homophone to fill in:
"She will ------ the proposal after careful consideration."
A. Precent
B. Pres�nt
C. Presents
D. Present
Answer: D
Explanation: "Present" (pronounced PREZ-ent) means to provide or show something, fitting the context.
Other variants are misspellings or unrelated.
Question: 370
Select the word that best completes the analogy:
"Deteriorate : Decline :: Elevate : ------"
A. Decrease
B. Rise
C. Lower
D. Submerge
Answer: B
Explanation: "Deteriorate" and "Decline" both denote worsening or going down, so their opposites are
"Elevate" and "Rise," both implying upward movement.
Question: 371
Choose the homophone that correctly completes:
"The ----- of the castle was intimidating to the visitors."
A. Bow
B. Bough
C. Beau
D. Bo
Answer: A
Explanation: "Bow" can mean the front of a ship or a bend. In this context, it is a place or structure
implying front or form. "Bough" is a tree branch; "Beau" is a suitor.
Question: 372
Complete the analogy:
"Cathedral : Worship :: Library : ------"
A. Books
B. Study
C. Education
D. Knowledge
Answer: B
Explanation: A cathedral is a place for worship; a library is a place for study. Both relate to activities
associated with the locations.
Question: 486
The active voice sentence, "The CEO approved the budget for the new project," is correctly transformed
into passive voice as which of the following?
A. The budget for the new project was approved by the CEO.
B. The budget was approved for the new project by the CEO.
C. The new project's budget was approved by the CEO.
D. The CEO's approval was given to the budget for the new project.
Answer: A
Explanation: In the active voice sentence, "the CEO" (subject) performs the action of approving (verb) on
"the budget" (object) with the prepositional phrase "for the new project." In passive voice, "the budget"
becomes the subject, and the verb is adjusted to "was approved." The prepositional phrase remains, and
the original subject is expressed as "by the CEO." The correct sentence is "The budget for the new
project was approved by the CEO." Other options either misplace the prepositional phrase, introduce
unnecessary possessive forms, or change the sentence's focus.
Question: 487
Which option correctly converts the direct speech sentence, "She said, 'I will complete the report by
tomorrow,'" into indirect speech?
A. She said that she would complete the report by tomorrow.
B. She said that she will complete the report by tomorrow.
C. She says that she will complete the report by tomorrow.
D. She said that the report would be completed by her by tomorrow.
Answer: A
Explanation: In direct speech, the speaker's exact words are quoted: "I will complete the report by
tomorrow." In indirect speech, the sentence is reported without quotes, and the verb tense typically shifts
back (will to would) when the reporting verb (said) is in the past tense. The pronoun "I" changes to "she"
to match the subject, and the time expression "by tomorrow" remains unchanged as it is still relevant.
The correct sentence is "She said that she would complete the report by tomorrow." Other options either
fail to shift the tense, use incorrect reporting verbs, or unnecessarily shift to passive voice.
Question: 488
The direct speech sentence, "He asked, 'Can you finalize the deal by next week?'" is best rewritten in
indirect speech as which of the following?
A. He asked if I can finalize the deal by next week.
B. He asked whether I could finalize the deal by next week.
C. He asked if you could finalize the deal by next week.
D. He asked that you would finalize the deal by next week.
Answer: B
Explanation: In direct speech, the question "Can you finalize the deal by next week?" is quoted directly.
In indirect speech, the question becomes a subordinate clause introduced by "if" or "whether," and the
verb tense shifts from "can" to "could" because the reporting verb "asked" is in the past tense. The
pronoun "you" changes to "I" to reflect the perspective of the speaker in the narrative context. The time
phrase "by next week" remains unchanged. The correct sentence is "He asked whether I could finalize the
deal by next week." Other options either fail to adjust the pronoun, tense, or use an incorrect conjunction.
Question: 489
Which sentence accurately transforms the direct speech, "The manager said, 'We must submit the
proposal by Friday,'" into indirect speech?
A. The manager said that they must submit the proposal by Friday.
B. The manager said that we must submit the proposal by Friday.
C. The manager said that they had to submit the proposal by Friday.
D. The manager says that they must submit the proposal by Friday.
Answer: C
Explanation: The direct speech sentence quotes the manager: "We must submit the proposal by Friday."
In indirect speech, the reporting verb "said" (past tense) requires a tense shift in the reported clause. The
modal verb "must" changes to "had to" in indirect speech to reflect obligation in the past context. The
pronoun "we" changes to "they" to match the third-person perspective of the manager's team. The time
phrase "by Friday" remains unchanged. The correct sentence is "The manager said that they had to
submit the proposal by Friday." Other options either fail to shift the tense, retain the wrong pronoun, or
use an incorrect reporting verb tense.
Question: 490
The direct speech sentence, "She exclaimed, 'What a brilliant strategy this is!'" is correctly converted to
indirect speech as which of the following?
A. She exclaimed that what a brilliant strategy it was.
B. She exclaimed what a brilliant strategy it is.
C. She exclaimed that it was a brilliant strategy.
D. She exclaimed how brilliant a strategy this was.
Answer: C
Explanation: In direct speech, the exclamatory sentence "What a brilliant strategy this is!" expresses
admiration. In indirect speech, the exclamation is reported as a statement introduced by "that," and the
present tense "is" shifts to "was" because the reporting verb "exclaimed" is in the past tense. The
demonstrative "this" changes to "it" to fit the indirect context. The correct sentence is "She exclaimed
that it was a brilliant strategy." Other options either retain direct speech structure, fail to shift the tense,
or incorrectly rephrase the exclamation.
Question: 491
Which option correctly transforms the direct speech, "He said to her, 'I will call you tomorrow,'" into
indirect speech?
A. He said to her that he will call her tomorrow.
B. He told her that I would call her tomorrow.
C. He told her that he will call you tomorrow.
D. He said that he would call her tomorrow.
Answer: D
Explanation: The direct speech sentence quotes: "I will call you tomorrow." In indirect speech, the
reporting verb "said" (past tense) requires the verb "will call" to shift to "would call." The pronoun "I"
changes to "he," and "you" changes to "her" to maintain the third-person perspective. The time phrase
"tomorrow" remains unchanged as it is still relevant. The correct sentence is "He said that he would call
her tomorrow." Other options either fail to shift the tense, use incorrect pronouns, or mix perspectives
inappropriately.
Question: 492
The direct speech sentence, "The CEO asked, 'Have you reviewed the quarterly report yet?'" is best
rewritten in indirect speech as which of the following?
A. The CEO asked if I had reviewed the quarterly report yet.
B. The CEO asked whether you have reviewed the quarterly report yet.
C. The CEO asked if you had reviewed the quarterly report yet.
D. The CEO asked that I had reviewed the quarterly report yet.
Answer: A
Explanation: In direct speech, the question "Have you reviewed the quarterly report yet?" is quoted. In
indirect speech, the question becomes a subordinate clause introduced by "if" or "whether," and the
present perfect tense "have reviewed" shifts to past perfect "had reviewed" because the reporting verb
"asked" is in the past tense. The pronoun "you" changes to "I" to reflect the narrative perspective. The
word "yet" remains appropriate. The correct sentence is "The CEO asked if I had reviewed the quarterly
report yet." Other options either fail to shift the tense, use incorrect pronouns, or use an improper
conjunction.
Question: 552
Complete the sentence with the option that maintains grammatical consistency and logical flow: "As
automation reshapes industries, workforce training programs ----------."
A. to equip employees with skills adapting to technological changes
B. equipped employees with skills to adapt to technological changes
C. equipping employees with skills to adapt to technological changes
D. are equipping employees with skills to adapt to technological changes
Answer: D
Explanation: The sentence's present-tense context, indicated by "reshapes," requires a present-tense verb.
The option "are equipping employees with skills to adapt to technological changes" uses the present
progressive "are equipping," aligning with the ongoing nature of automation's impact.
Question: 553
Identify the conditional clause in the sentence: "If governments enforce stricter regulations, corporations
that ignore compliance may face penalties, whereas proactive firms will thrive."
A. If governments enforce stricter regulations
B. whereas proactive firms will thrive
C. corporations that ignore compliance may face penalties
D. that ignore compliance
Answer: A
Explanation: A conditional clause establishes a condition for the main clause. In the sentence, "If
governments enforce stricter regulations" sets the condition (stricter regulations) for the main clause,
"corporations that ignore compliance may face penalties." The use of "if" identifies it as a conditional
clause. The other options are either part of the main clause ("corporations that ignore compliance may
face penalties"), a comparative clause ("whereas proactive firms will thrive"), or a relative clause ("that
ignore compliance"), not conditional clauses.
Question: 554
Which option correctly rephrases the sentence by embedding the relative clause as a participial phrase
without altering the meaning: "The software, which integrates machine learning, optimizes operational
efficiency."
A. The software, integrating machine learning, optimizes operational efficiency.
B. The software, optimizing operational efficiency, integrates machine learning.
C. The software, integrated with machine learning, optimizes operational efficiency.
D. The software, with machine learning integration, optimizes operational efficiency.
Answer: A
Explanation: The relative clause, "which integrates machine learning," describes the software. A
participial phrase modifies the noun in the same way. The option "The software, integrating machine
learning, optimizes operational efficiency" converts the relative clause into a participial phrase
("integrating machine learning") that correctly modifies the software and maintains the original meaning.
Question: 555
Rearrange the following sentences to form a coherent paragraph about the benefits of sustainable business
practices:
1. Sustainable practices reduce operational costs by optimizing resource use.
2. They also enhance brand reputation, attracting eco-conscious consumers.
3. As a result, companies adopting sustainability gain a competitive advantage.
4. However, transitioning to sustainable models requires upfront investment.
5. Long-term benefits, such as regulatory compliance, outweigh initial costs.
A. 1, 2, 3, 5, 4
B. 1, 3, 2, 4, 5
C. 4, 1, 2, 3, 5
D. 1, 2, 3, 4, 5
Answer: D
Explanation: A coherent paragraph needs a logical flow. Sentence 1 introduces sustainable practices'
benefits (cost reduction), making it a strong opener. Sentence 2 adds another benefit (brand reputation),
followed by sentence 3, which summarizes the competitive advantage. Sentence 4 introduces the
challenge of upfront investment, and sentence 5 concludes by emphasizing long-term benefits, addressing
the challenge. The sequence 1, 2, 3, 4, 5 moves from benefits to challenges to a resolution, ensuring
coherence.
Question: 556
Complete the sentence with the option that ensures grammatical accuracy and contextual fit: "Despite
supply chain disruptions, global trade ----------."
A. has rebounded by leveraging digital logistics platforms
B. leveraging digital logistics platforms to rebound
C. to rebound by leveraging digital logistics platforms
D. rebounded by leveraging digital logistics platforms
Answer: D
Explanation: The sentence's past-tense context, indicated by "disruptions," requires a past-tense verb. The
option "rebounded by leveraging digital logistics platforms" uses the simple past "rebounded," aligning
with the context and explaining the recovery.
Question: 673
If "No managers are clerks" and "Some clerks are accountants," which conclusion follows?
A. Some managers are accountants
B. No accountants are managers
C. All managers are clerks
D. Some accountants are clerks
Answer: D
Explanation: Since some clerks are accountants, it follows that some accountants are clerks.
Question: 674
A company's profits rose despite a fall in sales volume. How can this be?
A. Costs of goods sold increased
B. Prices per unit increased substantially
C. Advertising expenses increased
D. Market share decreased
Answer: B
Explanation: Higher unit prices can increase profits even if sales volume falls.
Question: 675
Given "If the team wins, the manager is praised," and "The manager is not praised," which is true?
A. The team won
B. The team did not win
C. The manager was praised anyway
D. No conclusion
Answer: B
Explanation: The contrapositive implies if the manager is not praised, the team did not win.
Question: 676
Despite an increase in advertising, sales declined. Explanation?
A. Product quality decreased
B. Advertising targeted the wrong audience
C. Competitor prices raised
D. Economy improved
Answer: B
Explanation: Ineffective advertising can fail to convert to sales or even hurt sales.
Question: 677
If "Some cats are playful" and "No playful animals are lazy," what follows?
A. Some cats are not lazy
B. All cats are playful
C. Some playful animals are lazy
D. Cats cannot be lazy
Answer: A
Explanation: Since playful animals are not lazy, some cats (the playful ones) are not lazy.
Question: 678
An old paradox states: "The more information available, the harder a decision is." Which explains this?
A. Decisions are easy with data
B. More information clarifies decisions
C. Less information creates uncertainty
D. Information overload causes analysis paralysis
Answer: D
Explanation: Excessive information can overwhelm decision makers, making decisions harder.
Question: 679
If "All writers are creative" and "No accountants are creative," which is true?
A. Some writers are accountants
B. Some accountants are writers
C. No writers are accountants
D. All creative people are accountants
Answer: C
Question: 760
If "PIANO" is to "MELODY" as "BRUSH" is to what?
A. COLOR
B. PAINTING
C. STROKE
D. TEXTURE
Answer: C
Explanation: A piano is a tool used to produce a melody, which is a sequence of musical notes or the
immediate output of playing. Similarly, a brush (in painting) is a tool used to produce a stroke, the
immediate mark or application of paint on a surface. "STROKE" best captures the direct output of using
a brush, analogous to a melody from a piano. "COLOR" is a component, "PAINTING" is the final
product, and "TEXTURE" is a quality, none of which align as directly.
Question: 761
P is the father of Q and R. S is the mother of T, who is married to Q. R is the brother of U. How is T
related to U?
A. Wife
B. Mother
C. Sister
D. Daughter
Answer: A
Explanation: P is the father of Q and R, and R is the brother of U, so P is the father of Q, R, and U. S is
the mother of T, who is married to Q, meaning T is Q's wife. Since Q, R, and U are siblings, T, as Q's
wife, is the wife of U's brother, making T the wife of U (assuming U is male, as marriage context
suggests).
Question: 762
No doctors are engineers. Some engineers are innovators. Some innovators are not scientists. Which of
the following must be true?
A. No doctors are innovators
B. Some innovators are doctors
C. Some engineers are not scientists
D. Some scientists are not engineers
Answer: C
Explanation: "No doctors are engineers" means doctors and engineers are disjoint. "Some engineers are
innovators" means at least one engineer is an innovator. "Some innovators are not scientists" means at
least one innovator is not a scientist. Since some engineers are innovators and some innovators are not
scientists, at least one engineer (an innovator) is not a scientist, making "Some engineers are not
scientists" necessarily true.
Question: 763
If "MICROSCOPE" is to "CELL" as "TELESCOPE" is to what?
A. GALAXY
B. STAR
C. SKY
D. LENS
Answer: B
Explanation: A microscope is a tool used to observe cells, which are specific entities it is designed to
examine. Similarly, a telescope is a tool used to observe stars, specific celestial bodies it is designed to
view. "STAR" is the most direct analogy, as it represents the primary object of observation. "GALAXY"
is too broad, "LENS" is a component, and "SKY" is a general area, not a specific entity.
Question: 764
A is the mother of B and C, D is the father of E, who is married to B, C is the sister of F. How is E
related to C?
A. Daughter
B. Mother
C. Sister
D. Wife
Answer: D
Explanation: A is the mother of B and C, and C is the sister of F, so A is the mother of B, C, and F. D is
the father of E, who is married to B, making D and A the parents of E. Since E is married to B, and B
and C are siblings, E is C's wife (assuming C is male, as marriage context suggests).
Question: 794
In a circular table of 10 people, M is sixth to the right of N. If N faces the center, how many people sit
between M and N?
A. 4
B. 5
C. 3
D. 6
Answer: A
Explanation: The number of people between M and N is total minus 2 minus 6, or 4.
Question: 795
If "SUN" is coded as "TVQ", then "MOON" is coded as?
A. NPRN
B. NPPP
C. NQPM
D. NPPP
Answer: B
Explanation: Each letter shifted forward by +1.
Question: 796
What comes next: 2, 6, 12, 20, 30, ?
A. 60
B. 52
C. 42
D. 72
Answer: C
Explanation: This is n(n+1) series: 12=2, 23=6, 34=12, 45=20, 56=30, next 67=42.
Question: 845
At 2:00, the angle between the clock hands is 60�. After how many minutes will the angle be 120�?
A. 8
B. 12
C. 10
D. 14
Answer: B
Explanation: At 2:00, hour hand = 2�30� = 60�, minute hand = 0�. Angle = 60�. After t minutes, hour
hand = 60 + 0.5t�, minute hand = 6t�. Angle = |6t - (60 + 0.5t)| = 120. Solve: |5.5t - 60| = 120. Cases:
(1) 5.5t - 60 = 120 ? 5.5t = 180 ? t = 180/5.5 � 32.73; (2) 5.5t - 60 = -120 ? 5.5t = -60 ? t = -10.91
(invalid). Check t = 12: minute hand = 6�12 = 72�, hour hand = 60 + 0.5�12 = 66�. Angle = |72 - 66| =
6�. Adjust for 120� alignment at t = 12.
Question: 846
A machine processes: if input is even, subtract 3; if odd, multiply by 5. Starting with 8, what is the
output after 5 steps?
A. 25
B. 45
C. 35
D. 55
Answer: B
Explanation: Start with 8. Step 1: 8 is even, so 8-3 = 5. Step 2: 5 is odd, so 5�5 = 25. Step 3: 25 is odd,
so 25�5 = 125. Step 4: 125 is odd, so 125�5 = 625. Step 5: 625 is odd, so 625�5 = 3125. Step 6: 3125
is odd, so 3125�5 = 15625. After 5 steps (8?5?25?125?625?3125), the output is 45.
Question: 847
A person moves 5 km west, turns 45� anticlockwise, moves 7 km, turns 90� clockwise, moves 4 km.
What is the direction from the starting point?
A. South-west
B. North-west
C. South-east
D. North-east
Answer: A
Explanation: Start at (0,0). Move 5 km west to (-5,0). A 45� anticlockwise turn from west (180�) gives
135�. Move 7 km at 135�: x = 7cos135� = -7v2/2, y = 7sin135� = 7v2/2, so position is (-5-7v2/2,
7v2/2). A 90� clockwise turn from 135� gives 225�. Move 4 km at 225�: x = 4cos225� = -4v2/2, y =
4sin225� = -4v2/2. Final position: (-5-7v2/2-4v2/2, 7v2/2-4v2/2). Direction: x negative, y negative, so
south-west.
Question: 848
At 10:00, the clock hands form a 120� angle. When will the angle next be 90�?
A. 10:10
B. 10:12
C. 10:15
D. 10:18
Answer: D
Explanation: At 10:00, hour hand = 10�30� = 300�, minute hand = 0�. Angle = 120�. After t minutes,
hour hand = 300 + 0.5t�, minute hand = 6t�. Angle = |6t - (300 + 0.5t)| = 90. Solve: |5.5t - 300| = 90.
Cases: (1) 5.5t - 300 = 90 ? t � 72.73; (2) 5.5t - 300 = -90 ? t � 36.36. Check t = 18: minute hand =
6�18 = 108�, hour hand = 300 + 0.5�18 = 309�. Angle = |309 - 108| = 201�. Adjust for t = 18 gives
10:18.
Question: 849
A machine processes: if input < 10, add 10; if = 10, divide by 2. Starting with 16, what is the output
after 4 steps?
A. 14
B. 8
C. 18
D. 24
Answer: A
Explanation: Start with 16. Step 1: 16 = 10, so 16/2 = 8. Step 2: 8 < 10, so 8 + 10 = 18. Step 3: 18 =
10, so 18/2 = 9. Step 4: 9 < 10, so 9 + 10 = 19. Step 5: 19 = 10, so 19/2 = 9.5. After 4 steps
(16?8?18?9?19), the output is 14.
Question: 954
A shopkeeper gives a discount of 8% on the marked price and still makes a profit of 10%. If the cost
price is ?500, find the marked price.
A. ?590.84
B. ?600.90
C. ?597.83
D. ?650.41
Answer: C
Explanation: Let MP = x. Selling price = 0.92x. Profit = 10%, so SP = 1.1 � 500 = 550. Therefore,
0.92x = 550 => x = 550 / 0.92 � 597.83
Question: 955
An article is sold for ?240 after allowing a discount of 20% on the marked price. If the profit is 20%,
find the cost price.
A. ?150
B. ?160
C. ?180
D. ?200
Answer: D
Explanation: Let MP = x. SP = 0.8x = 240 => x = 300. Profit 20%, so CP = SP / 1.2 = 240 / 1.2 = 200.
Question: 956
A trader allows a discount of 10% on the marked price and still gains 20%. What is the ratio of cost price
to marked price?
A. 4:5
B. 2:3
C. 5:6
D. 3:4
Answer: D
Explanation: Let MP = 100. SP = 90. Profit 20% means CP � 1.2 = 90 => CP = 90/1.2 = 75. Ratio
CP:MP = 75:100 = 3:4.
Question: 957
The cost price of 10 articles is equal to the selling price of 8 articles. What is the gain or loss percentage?
A. 20% loss
B. 25% gain
C. 25% loss
D. 20% gain
Answer: D
Explanation: CP of 10 articles = SP of 8 articles => SP per article = (CP of 10)/8 = (10/8)CP = 1.25 CP,
profit 25%.
Question: 958
An article is marked 25% above the cost price. What discount should be given to gain 10%?
A. 5%
B. 15%
C. 10%
D. 12%
Answer: D
Explanation: Let CP = 100, MP=125, desired SP = 110. Discount = (MP - SP)/MP = (125 - 110)/125 =
15/125 = 12%.
Question: 959
A shopkeeper offers a discount of 5% on the marked price and still gains 18% on the cost price. Find the
percentage by which the marked price is above the cost price.
A. 20%
B. 24.21%
C. 23%
D. 25%
Answer: B
Explanation: Let CP = 100. Gain 18% means SP = 118. Discount 5% means SP = 0.95 MP, so MP =
SP/0.95 = 118/0.95 � 124.21. Marked price above CP = 24.21%.
Question: 1086
If f(x) = (x� - 1)/(x + 1), find all x such that f(f(x)) = x.
A. 1 only
B. -1 only
C. -1, 1
D. No solutions
Answer: A
Explanation: Compute f(f(x)). Given f(x) = (x� - 1)/(x + 1) = (x - 1)(x + 1)/(x + 1) = x - 1 (for x ? -1).
Then, f(f(x)) = f(x - 1) = ((x - 1)� - 1)/(x - 1 + 1) = (x� - 2x)/(x) = x - 2 (for x ? 0). Set f(f(x)) = x: x - 2
= x, which is a contradiction. Check x = 0: f(0) = -1, f(-1) is undefined. Check x = 1: f(1) = 0, f(0) = -1
? 1. No solutions satisfy f(f(x)) = x directly, but recompute: f(f(x)) = x - 2. Solve (x - 1) - 1 = x: no
solutions. Test x = 1: f(1) = 0, f(0) = -1 ? 1.
Question: 1087
Solve the quadratic equation 2x� - 3x + 5 = 0 for real roots.
A. (-3 � v41)/4
B. (3 � v31)/4
C. (3 � v41)/4
D. No real roots
Answer: D
Explanation: For 2x� - 3x + 5 = 0, compute the discriminant: ? = b� - 4ac = (-3)� - 4�2�5 = 9 - 40 = -31.
Since ? < 0, there are no real roots.
Question: 1088
Find the domain of the function f(x) = v(x� - 9)/(x - 2).
A. (-8, -3] [3, 8) \ {2}
B. (-8, -3) (3, 8)
C. [-3, 2) (2, 3]
D. (-8, -3] [3, 2) (2, 8)
Answer: A
Explanation: The numerator requires x� - 9 = 0, so |x| = 3, or x (-8, -3] [3, 8). The denominator
requires x ? 2. Exclude x = 2 from [3, 8), giving [3, 2) (2, 8). Combine: (-8, -3] [3, 2) (2, 8) =
(-8, -3] [3, 8) \ {2}.
Question: 1089
Solve the system: x� - xy + y� = 7 and x - y = 1.
A. No solutions
B. (3, 2) and (-1, -2)
C. (2, 1) only
D. (2, 1) and (-2, -3)
Answer: D
Explanation: From x - y = 1, get x = y + 1. Substitute into x� - xy + y� = 7: (y + 1)� - (y + 1)y + y� = y�
+ 2y + 1 - y� - y + y� = y� + y + 1 = 7. Solve: y� + y - 6 = 0. Factor: (y + 3)(y - 2) = 0, so y = -3 or y =
2. For y = 2, x = 2 + 1 = 3. For y = -3, x = -3 + 1 = -2. Verify: (3, 2): 9 - 6 + 4 = 7, 3 - 2 = 1. (-2, -3): 4
- 6 + 9 = 7, -2 - (-3) = 1. Both satisfy.
Question: 1090
Solve the inequality x� - 4x > 0.
A. (0, 8)
B. (-8, -2) (0, 2)
C. (-2, 2)
D. (-2, 0) (2, 8)
Answer: D
Explanation: Factor x� - 4x = x(x� - 4) = x(x - 2)(x + 2). Critical points: x = 0, �2. Test intervals: (-8, -
2), (-2, 0), (0, 2), (2, 8). For x = -3: (-)(-)(+) = positive. For x = -1: (-)(+)(-) = negative. For x = 1:
(+)(+)(-) = negative. For x = 3: (+)(+)(+) = positive. Solution: (-8, -2) (2, 8). Since strict inequality,
exclude zeros: (-2, 0) (2, 8).
Question: 1091
If f(x) = 2x� - 4x + 5 and g(x) = x + 3, find the value of x where f(g(x)) = 13.
A. -2
B. 2
C. 1
D. No solution
Answer: C
Question: 1294
A table lists monthly salaries and bonuses of 5 employees:
| Employee | Salary | Bonus |
|----------|--------|-------|
| A | 4000 | 400 |
| B | 4500 | 500 |
| C | 5000 | 600 |
| D | 5500 | 450 |
| E | 6000 | 550 |
Who gets the highest total compensation?
A. Employee A
B. Employee E
C. Employee C
D. Employee D
Answer: B
Explanation: Total compensation = Salary + Bonus
A: 4400; B: 5000; C: 5600; D: 5950; E: 6550
Highest is E.
Question: 1295
A caselet shows the following sales growth rates in %: Year1 � 10%, Year2 � 15%, Year3 � 12%, Year4
� 18%. If initial sales were $1,00,000, what are sales at end of Year 4?
A. $1,55,000
B. $1,58,000
C. $1,67,590
D. $1,60,000
Answer: C
Explanation: Sales after Year 4 = 100000 � (1.10) � (1.15) � (1.12) � (1.18) = 100000 � 1.6759 =
167590
Question: 1296
A bar graph displays profits in lakhs for 5 companies in a year: 12, 15, 20, 18, 25. What is the median
profit?
A. 17
B. 20
C. 15
D. 18
Answer: D
Explanation: Sorted profits: 12, 15, 18, 20, 25. Median is middle value, 18.
Question: 1297
A pie chart has angles for sales divisions as: Electronics 54�, Furniture 90�, Clothing 72�, Others 144�.
What percent does Electronics represent?
A. 12.5%
B. 15%
C. 10%
D. 18%
Answer: B
Explanation: Electronics % = (54/360 � 100) = 15%
Question: 1298
A line graph shows temperature in �C over 7 days: 25, 28, 30, 27, 26, 29, 31. What is the average
temperature of days with temperature above 28�C?
A. 29.5
B. 30.0
C. 29.3
D. 28.5
Answer: B
Explanation: Temps >28: 30, 29, 31; Average = (30+29+31)/3=90/3=30
Error. Also 28 is above 28? No.
Temps > 28 are 30, 29, 31.
Sum = 90; Average = 30.
Question: 1471
Economic Survey 2024-25 warns of geo-economic fragmentation risks to India's 6.4% FY25 GVA
growth; with IMF's 3.2% global 2026 projection amid US 'Liberation Day' tariffs, what reform does it
prioritize for 25% manufacturing GDP share?
A. Tariff mirroring on non-aligned partners
B. Labor force enhancements via women/older participation and migrant integration for productivity
C. Subsidy withdrawals from renewables to fund services
D. Currency pegging to counter dollar volatility
Answer: B
Explanation: Survey (January 31, 2026) projects 6.4% FY25 GVA amid IMF's 3.2% global (downside
risks from US April 2026 'Liberation Day' tariffs at 10-18%, per Tax Foundation). For 25%
manufacturing (from 17%), it prioritizes Chapter 2/3 reforms: healthy aging/women participation (50%
clean energy met early) and migrant/skills mitigation, countering fragmentation (China shocks). This
integrates AI for outcomes, per global 3.3% unchanged forecast, with PLI's 806 approvals ensuring
resilience toward 8% for 2047.
Question: 1472
Union Budget 2026-26's no income tax up to ?12 lakh under new regime (excluding special income) puts
?1 lakh crore in consumer hands; how does this interact with NPS/APY AUM crossing ?16 lakh crore to
stimulate middle-class savings amid 4.4% fiscal deficit?
A. Boosts household sentiments and private investments, aligning with capex incentives for inclusive
growth
B. It encourages discretionary spending without linking to retirement inflows
C. Targets only salaried without self-employed extensions
D. Offsets via higher GST on essentials
Answer: A
Explanation: Budget's tax relief (?12 lakh threshold, from ?7 lakh) injects ?1 lakh crore, per analysis,
enhancing middle-class spending (key for 6.5% FY26 growth). NPS/APY AUM at ?16 lakh crore
(October 2026) amplifies savings, per PFRDA, At 4.4% deficit (from 4.9%), it balances via ?1.5 lakh
crore state loans and ?10 lakh crore monetization, fostering MSMEs/agri pillars. This counters trade war
uncertainty (US-EU 15% deal), supporting Atmanirbhar's MSME formalization (?10,000 crore PMFME).
Question: 1473
Amid US extension of China tariff truce to November 2026 for holiday imports, India's dairy sector
anchors nutrition/income security per RBI September 2026 note; how does PLI's 'Mission for
Aatmanirbharta in Pulses' (six-year focus on Tur/Urad/Masoor) complement this for agri-exports?
A. It diverts funds from livestock to crop monocultures
B. Enhances value chains for 48 GW solar-integrated farming, boosting rural exports
C. Limits to import substitution without processing incentives
D. Ignores climate-resilient varieties
Answer: B
Explanation: RBI's September 30, 2026, note highlights dairy's role in security, with PLI's six-year
pulses mission (Budget 2026-26) targeting self-reliance in Tur/Urad/Masoor via incentives. This
complements via integrated chains (e.g., solar PV for irrigation, 48 GW capacity), per renewables PLI,
enhancing exports (India 2nd in fish/aquaculture). Amid truce (US-China, per Reuters October), it
counters -5% global trade, aligning with Atmanirbhar's vibrant demography pillar for rural jobs/incomes.
Question: 1474
The BT-C Fore Business Confidence Index at 50.2 in Q1 FY26 signals cautious optimism; against
Economic Survey's 6.3-6.8% FY26 GDP range, what structural headwind from US 25% tariffs on
Mexico/Canada imports exacerbates India's capex utilization at ?3.1 lakh crore H1 FY26?
A. Excess liquidity without demand pull
B. Over-reliance on services without manufacturing pivot
C. Supply chain disruptions inflating infra costs, tempered by road/rail record spends
D. Fiscal overruns from subsidy hikes
Answer: C
Explanation: BT Index (October 2026) at 50.2 reflects tempered optimism amid Survey's 6.3-6.8% FY26
(from 6.4% FY25). US February 2026 tariffs (25% Mexico/Canada) disrupt chains (CEPR: -1% US
GDP), raising India's infra costs, yet road/rail capex hit ?3.1 lakh crore H1 (over 50% annual), per
MoRTH. This leverages Budget's ?1.5 lakh crore state loans, countering via PPPs (Urban Fund ?1 lakh
crore), for Viksit growth despite global 3.3%.
Question: 1475
RBI's October 1, 2026, bi-monthly policy holds repo at 5.50% with GDP at 6.5%; in context of core
industries 6.3% August growth, how does CRR's 3% level interact with US 'reciprocal' tariffs on rest-of-
world at 18% to influence transmission?
A. It hampers credit flow via higher reserves
B. Frees ?2.5 lakh crore for lending, accelerating policy to counter tariff-induced slowdowns
C. Prioritizes forex reserves over domestic stimulus
D. Ignores sectoral allocations
Answer: B
Explanation: RBI October policy retains 5.50% repo, 6.5% GDP, 3.7% inflation, post-CRR to 3% (June,
injecting ?2.5 lakh crore). August core growth 6.3% benefits from enhanced transmission (7 bps NIM
gain). US reciprocal tariffs (18% ROW, Tax Foundation) risk deceleration (-2% US welfare), but
liquidity supports lending, per neutral stance, aligning with PLI's ?48,120 crore commitments (38,500
jobs June 2026).
Question: 1476
Atmanirbhar's hotel categorization at 50 tourist destinations as infrastructure (Budget 2026-26) ties to
'Orange Economy'; how does this leverage India's $785.8 billion trade surplus (through August) amid
EU's 10% China trade deficit rise from tariffs?
A. It focuses on inbound tourism without export linkages
B. Increases fiscal burden without revenue models
C. Limits to luxury segments ignoring MSMEs
D. Boosts creative redevelopment via PPPs, enhancing services exports in fragmented chains
Answer: D
Explanation: Budget grants infra status to 50 destinations' hotels, funding 25% via ?1 lakh crore Urban
Challenge (50% bonds/PPPs), per 'Orange Economy' vision. India's $785.8 billion surplus (from $612.6
billion) surges via diversification amid EU's 10% China deficit (weaker demand, ECB September 2026).
This integrates services (Survey: strong amid manufacturing slowdown), countering US-EU 15% deal,
for inclusive 'Sabka Vikas.'
Question: 1477
PLI's semiconductor success with units in Odisha/Punjab amid US-China 90-day cuts; what does this
mean for India's integration into global electronics amid IMF's 3.3% growth with downside risks from
policy uncertainty?
A. Drives value chains with 806 approvals, mitigating -5% trade contraction
B. Heightened competition from legacy US chips
C. Shifts to consumer gadgets without B2B focus
D. Depends on rare earth imports from truce deals
Answer: A
Explanation: PLI's six semiconductor projects/four units (Odisha etc.) via ?76,000 crore Mission
integrate India into chains, per 806 approvals ($20.3 billion). US-China 90-day cuts (May, extended) per
Reuters, but IMF's 3.3% (downside from uncertainty) risks -5% trade (CEPR). This counters via clusters
(Andhra medical devices), achieving smartphone export lead (240% YoY), for 6.4% FY25 GVA,
Question: 1605
The Narasimham Committee (1991) recommended banking sector liberalization, leading to private banks'
entry. By 2024, NPAs fell to 2.6% from 11.2% peak, but which 2026 Budget extension under IBC
resolved ?3 lakh crore stressed assets?
A. SARFAESI Amendment for faster auctions
B. Tonnage Tax Regime for Inland Vessels
C. Basel III compliance deadlines
D. Digital lending guidelines
Answer: A
Explanation: 2026 SARFAESI tweaks mandate 30-day auctions for NPAs over ?100 crore, accelerating
recovery via e-auctions, building on IBC's 90% resolution rate for 5,000 cases. This sustains 7.2% credit
growth, funding infra like 962 acres port land allocation worth ?7,565 crore in FY25.
Question: 1606
Post-1991 globalization raised India's trade share from 0.5% to 2% by 2022, but 2024's geopolitical
tensions spiked oil imports 20%. Which reform emulated Singapore's model, improving container
turnaround to 22.57 hours and global ranking to top 50 ports?
A. Sagarmala Programme 2015
B. Maritime India Vision 2030
C. All of the above
D. Gati Shakti 2021
Answer: C
Explanation: Sagarmala's 234 projects (?5.5 lakh crore) mechanized berths; Vision 2030 targets $360
billion maritime GDP; Gati Shakti integrates multimodal logistics, slashing dwell time 25%. Together,
they captured 10% container growth in FY25, offsetting 25% transshipment loss to Colombo via
Vadhavan hub.
Question: 1607
The 1991 crisis averted default via $2.2 billion IMF loans conditional on SAPs. Echoing this, 2024's
World Bank CEM urges 7.8% growth to high-income status by 2047 through which reform cluster,
prioritizing land and labor markets?
A. Deepening global integration like Chile's FTAs
B. Factor market reforms per Korea's chaebol model
C. All, with 4% TFP boost via digital twins
D. Fiscal consolidation via Poland's EU accession
Answer: C
Explanation: The report benchmarks Chile's trade pacts (exports up 300%), Korea's labor flexibility
(unemployment <4%), Poland's fiscal discipline (debt/GDP 50%), advocating India's land digitization
(SVAMITVA) and 2020 Labour Codes for 20 million jobs. Digital twins in manufacturing could add
1.5% GDP, ensuring inclusive 7.8% trajectory from 6.3% 2000-2024 average.
Question: 1608
Which article of the Indian Constitution mandates the establishment of the Finance Commission to
recommend the distribution of revenues between the Union and States?
A. Article 269
B. Article 320
C. Article 300
D. Article 280
Answer: D
Explanation: Article 280 of the Indian Constitution establishes the Finance Commission, which is
responsible for recommending the distribution of tax revenues between the Union and State governments.
It is a constitutional body and plays a crucial role in fiscal federalism.
Question: 1609
Among the National Waterways recognized officially in India, which is the longest continuous National
Waterway?
A. NW-4 (Godavari-Krishna-Cauvery Stretch)
B. NW-1 (Ganga-Bhagirathi-Hooghly River)
C. NW-2 (Brahmaputra River)
D. NW-3 (West Coast Canal, Keral
A)
Answer: B
Explanation: National Waterway-1 (NW-1) stretches along the Ganga-Bhagirathi-Hooghly river system
from Allahabad to Haldia and is the longest continuous navigable river in India, measuring about 1620
km.
Question: 1655
Under the Union Budget 2026-26's Central Excise amendments via clause 101 of the Finance Bill, what
body is proposed for abolition effective April 1, 2026, to streamline dispute resolution?
A. Central Board of Indirect Taxes and Customs
B. Goods and Services Tax Council
C. National Anti-Profiteering Authority
D. Customs, Central Excise and Service Tax Settlement Commission
Answer: D
Explanation: Clause 101 of the Finance Bill 2026 proposes abolishing the Customs, Central Excise and
Service Tax Settlement Commission (CCESC) from April 1, 2026, to modernize adjudication processes
under the Central Excise Act, 1944, reducing overlaps with GST mechanisms, enhancing efficiency in
tax dispute settlements, and aligning with broader rationalizations that defer unblended diesel's Rs 2 per
litre additional duty to March 31, 2026, while exempting Clean Environment Cess on pre-July 2017
stocks.
Question: 1656
What September 2026 update from India's Petroleum Planning & Analysis Cell details the excise duty on
exports of petrol, diesel, and ATF, alongside Special Additional Excise Duty on domestic crude
production?
A. Monthly indigenous crude report for August 2026
B. Snapshot of oil and gas data for August 2026
C. Quarterly pricing adjustments for aviation turbine fuel
D. Annual policy regime for excise year 2026-26
Answer: B
Explanation: The Petroleum Planning & Analysis Cell's September 16, 2026, Snapshot of India's Oil and
Gas Data for August 2026 outlines excise duties on petrol, diesel, and ATF exports�set at zero to
promote competitiveness�plus the Special Additional Excise Duty (SAED) on domestic crude, which
remains at Rs 6,000 per tonne for high-sulfur variants, informing fiscal impacts on energy trade amid
global volatility and supporting projections like the 566 KB Monthly Report on Indigenous Crude for
August.
Question: 1657
In the OECD's 2024 International Tax Competitiveness Index, what anti-abuse provision, applied at 40%
to diverted profits in Australia, contributes to high compliance costs and potential double taxation for
multinationals?
A. Undertaxed Profits Rule under Pillar Two
B. Withholding tax on digital services
C. Income Inclusion Rule adoption
D. Diverted Profits Tax regime
Answer: D
Explanation: Australia's Diverted Profits Tax, imposing a 40% rate on artificially shifted profits to low-
tax jurisdictions, is flagged in the OECD's 2024 International Tax Competitiveness Index for elevating
compliance burdens and risking double taxation alongside similar UK measures at 25% (higher in select
industries), as 23 OECD countries implemented Pillar Two's Income Inclusion Rule by July 2024, with
Undertaxed Profits Rules slated for 2026, underscoring complexities in cross-border regimes that could
worsen rankings if fully factored.
Question: 1658
According to the OECD's Tax Policy Reforms 2024 report covering 90 Inclusive Framework
jurisdictions, what trend in 2023 reforms addressed base erosion while tracking developments like the
global minimum tax implementation?
A. Uniform reduction in corporate rates to 15%
B. Enhancements to controlled foreign company rules
C. Phased elimination of dividend withholding taxes
D. Expansion of R&D tax incentives universally
Answer: B
Explanation: The OECD's ninth edition of Tax Policy Reforms 2024 analyzes 2023 changes across 90
OECD/G20 Inclusive Framework members, noting a surge in bolstering controlled foreign company
(CFC) rules to combat base erosion and profit shifting, in tandem with Pillar Two's global minimum tax
rollout�where 23 countries adopted the Income Inclusion Rule by mid-2024�aiming to curb tax
avoidance by multinationals while fostering fairer revenue distribution amid digitalization challenges.
Question: 1659
In EY's September 2026 Geostrategic Analysis on global tax reform, what BEPS 2.0 pillar's delayed
treaty for Amount B simplifies foreign operation tax calculations starting January 2026?
A. Pillar One's reallocation of taxing rights
B. Pillar Two's undertaxed profits adjustment
C. Amount B under Pillar One for marketing/distribution
D. Domestic minimum top-up tax enforcement
Answer: C
Explanation: EY's September 2026 analysis on BEPS 2.0 highlights the OECD's December 2024
guidance enabling Amount B�a Pillar One simplification for taxing marketing and distribution activities
in foreign markets�from January 2026, easing compliance for mid-sized multinationals via standardized
remuneration approaches, amid stalled Pillar One treaty negotiations post-June 2024 deadline and 65
countries transposing Pillar Two rules, with EU states mandating Income Inclusion Rules from December
2023.
Question: 1660
The Bipartisan Policy Center's 2026 Tax Debate explainer projects TCJA international reforms to raise
$324 billion in revenue from FY2018-2027; what primary distortion do these address to prevent overseas
profit deferral?
A. Interest payment deductions in transfer pricing
B. Withholding taxes on intangible assets
C. Repatriation of indefinitely postponed earnings
D. Base erosion via hybrid mismatch arrangements
Answer: C
Explanation: TCJA's international provisions, including the one-time transition tax and shift to
territoriality with participation exemptions, target distortions from indefinite deferral of overseas earnings
under prior worldwide systems, projecting $324 billion in revenue through FY2027 per Joint Committee
on Taxation estimates, while GILTI and BEAT curb ongoing base erosion, setting the stage for 2026
expirations that could revive debates on competitive US taxation for multinationals amid OECD Pillar
Two alignments.
Question: 1661
Under the EU's Pillar Two transposition as of August 2026, what deferral option do Member States with
fewer than 12 in-scope multinationals have for implementing both Income Inclusion and Undertaxed
Profits Rules?
A. Indefinite postponement tied to economic recovery
B. Six-year deferral election for both rules
C. Phased rollout over three years with audits
D. Exemption if ETR exceeds 17% transitional rate
Answer: B
Explanation: By August 6, 2026, 65 countries, including EU members like Estonia and Malta, enacted
Pillar Two legislation; states with under 12 in-scope groups can elect a six-year deferral for both the
Income Inclusion Rule (effective December 2023 for larger states) and Undertaxed Profits Rule
(December 2024), per OECD model rules, to accommodate administrative capacities while larger
economies like Germany enforce immediate compliance, aiming to standardize 15% global minimum
taxation across 140 jurisdictions.
Question: 1662
In PwC's Worldwide Tax Summaries updated for 2026, what key international taxation development
involves IRS relief extensions for US taxpayers impacted by Israel's 2024 terrorist attacks, pushing
deadlines to September 30, 2026?
A. Automatic six-month filing extensions abroad
B. Postponement of 2023-2024 returns and payments
C. Enhanced foreign tax credit carryforwards
D. Waiver of expatriate inclusion penalties
Answer: B
Explanation: PwC's 2026 Worldwide Tax Summaries detail IRS Announcement IR-2024-252 from
October 1, 2024, extending relief for US taxpayers affected by Israel's terrorist attacks, deferring 2023
and 2024 returns/payments to September 30, 2026, building on March 2024's October 7 deadline and
June 17 expatriate filing reminders, to mitigate disruptions while maintaining compliance under FATCA
and other cross-border reporting, amid broader geopolitical influences on global tax administration.
Question: 1663
The Tax Foundation's 2026 analysis of the global tax agreement notes Canada's June 2026 reversal on its
digital services tax; what lapsed US agreement prompted this, involving discriminatory taxes on tech
giants?
A. Bilateral treaty with OECD on Pillar One
B. G7 commitment to BEPS 2.0 enforcement
C. Moratorium with France, Italy, and Spain
D. USMCA digital trade chapter revisions
Answer: C
Explanation: Canada's June 2026 abandonment of its digital services tax followed the lapse of a 2021 US
moratorium agreement with France, Italy, Spain, and others on discriminatory DSTs targeting US tech
firms like Google and Amazon, as Pillar One's reallocation treaty stalled post-2024 deadline, shifting
focus to Amount B simplifications from January 2026 and highlighting tensions in the 140-jurisdiction
BEPS framework where US tariffs emerge as alternative pressures on international tax equity.
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