CAT Practice Question and Answer

Q: The main components of market risk are  a) Liquidity risk     b) Interest rate risk       c) Currency risk 2457 0

  • 1
    Only a
    Correct
    Wrong
  • 2
    both a and b
    Correct
    Wrong
  • 3
    only c
    Correct
    Wrong
  • 4
    all a, b and c
    Correct
    Wrong
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Answer : 4. "all a, b and c"
Explanation :

Answer: D) all a, b and c Explanation:

Q: Tides are primarily a result of the  ____ ? 2456 0

  • 1
    Attraction of the Moon
    Correct
    Wrong
  • 2
    Farrel's law
    Correct
    Wrong
  • 3
    Ocean Currents
    Correct
    Wrong
  • 4
    Earth's pressure system
    Correct
    Wrong
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Answer : 1. "Attraction of the Moon"
Explanation :

Answer: A) Attraction of the Moon Explanation:

Q: A circular piece of thin wire is converted into a rhombus of side 11 cm. Find the diameter of the circular piece? 2451 0

  • 1
    28 cm
    Correct
    Wrong
  • 2
    3.5 cm
    Correct
    Wrong
  • 3
    7 cm
    Correct
    Wrong
  • 4
    14 cm
    Correct
    Wrong
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Answer : 4. "14 cm"
Explanation :

Answer: D) 14 cm Explanation: Circular piece is 4 x 11 = 44 cm long, Then Circumference of circle is given by, 44 = pi x D, where D is the diameter D = 44 / pi Take pi = 22 / 7, then D = 44 / (22/7) = (44 x 7) / 22 D = 14 cm.

Q: Select a suitable figure from the four alternatives that would complete the figure matrix. 2450 0

  • 1
    2
    Correct
    Wrong
  • 2
    4
    Correct
    Wrong
  • 3
    3
    Correct
    Wrong
  • 4
    1
    Correct
    Wrong
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Answer : 1. "2"
Explanation :

Answer: A) 2 Explanation: In each row, the second figure is obtained from the first figure by adding two mutually perpendicular line segments at the centre and the third figure is obtained from the first figure by adding four circles outside the main figure.

Q: Which of the following is the lightest metal? 2448 0

  • 1
    Lithium
    Correct
    Wrong
  • 2
    Silver
    Correct
    Wrong
  • 3
    Mercury
    Correct
    Wrong
  • 4
    Lead
    Correct
    Wrong
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Answer : 1. "Lithium"
Explanation :

Answer: A) Lithium Explanation: Lithium is the lightest metal and the lightest solid element. It is a soft, silvery-white alkali metal. Under standard conditions. Like all alkali metals, lithium is highly reactive and flammable and is stored in mineral oil.

Q: What is the common ratio of the following geometric sequence? 4, 2, 1, 0.5, 0.25, 0.125,... 2447 0

  • 1
    0.5
    Correct
    Wrong
  • 2
    -1
    Correct
    Wrong
  • 3
    1.5
    Correct
    Wrong
  • 4
    -0.5
    Correct
    Wrong
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Answer : 1. "0.5"
Explanation :

Answer: A) 0.5 Explanation: In mathematics, a geometric progression, also known as a geometric sequence, is a sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.   Herein the given sequence, 4, 2, 1, 0.5, 0.25, 0.125,... Common Ratio r = 2/4 = 1/2 = 0.5/1 = 0.25/0.5 = 0.125/0.25 == 0.5.

Q: A tailor has 37.5 metres of cloth and he has to make 8 pieces out of a metre of cloth. How many pieces can he make out of half of the cloth he has ? 2446 0

  • 1
    300
    Correct
    Wrong
  • 2
    150
    Correct
    Wrong
  • 3
    175
    Correct
    Wrong
  • 4
    200
    Correct
    Wrong
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Answer : 2. "150"
Explanation :

Answer: B) 150 Explanation: Half of the cloth = 37.5/2 From 1 meter he will make 8 pieces=> in 37.5/2 ---- ? 37.5/2 x 8 = 150.

Q: The law of increasing opportunity costs states that 2444 0

  • 1
    along a production possibilites curve, increases in the production of one good make the production of that good easier and easier
    Correct
    Wrong
  • 2
    increases in wages cause increases in the costs of production
    Correct
    Wrong
  • 3
    costs of production increases and then decreases
    Correct
    Wrong
  • 4
    along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good
    Correct
    Wrong
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Answer : 4. "along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good"
Explanation :

Answer: D) along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good Explanation: Opportunity cost is the cost of what you are giving up to do what you are currently doing. If you can either go to work or go to the beach, and you choose to work, the opportunity cost of working is the value you would have gotten had you gone to the beach.   The law of increasing opportunity costs states that as you increase production of one good, the opportunity cost to produce an additional good will increase.

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