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2
Directions: (Q.1-5): In each question below
is given a statement followed by two courses of
action numbered I and II. A course of action is
a step or administrative decision to be taken for
improvement, follow-up or further action in
regard to the problem, policy, etc. On the basis
of the information given in the statement - you
have to assume every thing in the statement to
be true - decide which of the suggested cours-
es of action logically follow(s) for pursuing.
Give answer:
1) If only I follows
2) If only II follows
3) If either I or II follows.
4) If neither I nor II follows
5) If both I and II follows.
1. Statement: The prices of mangoes in the
local market have dropped substantially due
to supply - demand mismatch.
Course of action:
I. The Govt. should encourage the whole-
sale fruit suppliers to sell the mangoes to
the markets of other states.
II. The Govt. should encourage the farmers
to extract pulp and sell the pulp to the
wholesalers.
2. Statement: A large mob gathered outside
the local police station to protest the recent
harassment of local people by some police
personnel.
Courses of action:
I. The officer in charge of the police station
should be instructed to persuade the mob
to disburse immediately
II. The police authority should immediately ini-
tiate an enquiry into the allegations and
inform the public accordingly.
3. Statement: The parents of majority of the
students of the local public school have
decided to withdraw their wards from the
schools to protest against the sharp fee hike.
Courses of action:
I. The school authority should start a dialogue
with the parents and explain to them the cir-
cumstance under which the fees had to be
hiked.
II. The school authority should immediately
scout for new students to fill the vacancy if
large number of students are withdrawn from
the school.
4. Statement: The prices in the crude oil in the
international market have risen by about 40
per cent in a month's time and show no
downward trend.
Courses of action:
I. The petrol prices in the domestic retail
market should immediately be increased
by about 30 per cent to absorb the cost
escalation.
II. The Govt. should provide subsidy to the
oil marketing companies to absorb the
cost escalation.
5. Statement: Many students were caught red-
handed while using unfair means during the
recent university examinations.
Courses of action:
I. All these students should be debarred from
taking university examination in future.
II. The students apprehended while using
unfair means should be handed over to
the police.
Directions (Q.6-10): Study the following
information carefully and answer the questions
given below:
A, B, C, D, E, F, G and H are eight
employees working in three departments -
Marketing , Finance and Production in an orga-
nization with at least two of them in any depart-
ment. Each of them has a different choice of
TV channels from Star, Zee, ESPN, DD, Sony,
NDTV, Aaj Tak and BBC not necessarily in the
same order.
D like ESPN and he works in Production
department with only G, B and F do not work in
the same department. H likes DD and does not
work in finance department. A does not work in
the same department with either F or C who
does not work in Marketing department. E
works with C in the same department and like
Star. B likes Aaj Tak and none of his colleagues
in the department likes either Sony or NDTV G
likes Zee. F does not like Sony.
6. Which channel does A like?
1) DD 2) NDTV 3) BBC
4) Data inadequate 5) None of these
7. In Which department does F work?
1) Marketing 2) Production
3) Finance 4) Marketing or Finance
5) None of these
8. Which channel does F like?
1) Zee 2) NDTV 3) BBC
4) Data inadequate 5) None of these
9. Which of the follow-
ing groups work in
Marketing depart-
ment?
1) BAC 2) BGE
3) HBE 4) BAE
5) None of these
10. In which depart-
ment does B work?
1) Marketing 2) Production
3) Finance 4) Data inadequate
5) None of these
Directions (Q.11-15) : Below is given a
passage followed by several possible infer-
ences which can be drawn from the facts
stated in the passage. You have to examine
each inference separately in the context of
the passage and decide upon its degree of
truth or falsity.
Mark answer 1) if the inference is
'definitely true', ie it properly follows
from the statement of facts given
Mark answer 2) if the inference is
'probably true', though not definitely
true in the light of the facts given.
Mark answer 3) if the data inade-
quate', ie from the facts given you
cannot say whether the inference is
likely to be true or false.
Mark answer 4) if the inference is probably
false', though not definitely false in the light
of the facts given.
Mark answer 5) if the inference is definitely
false ie cannot be possibly be drawn from
the facts given or it contradicts the given
facts.
The main benefit to the economy from an
active stock market is the ready availability
of risk capital for investment in equities
through the primary market. For that risk
capital to be readily available, investor need
to have an easy exit route. A liquid sec-
ondary market provides an easy exit route
through the active involvement of buyers
and sellers. It does not matter whether
these buyers and sellers have short or long
term investment horizon. Liquidity in the
market is enhanced by leveraged players
who either borrow to play the market or
achieve a similar result through futures con-
tracts whose economic value includes
financing costs. Short sellers confer a simi-
lar benefit by borrowing stock or achieving
the same result through futures contracts.
11. Players in the primary market generally bor-
row funds and earn money by quick dispos-
al in the secondary market.
12. Passive stock market enhances availability
of capital.
13. The nature of activity of the long-term play-
ers in the secondary market has significant
effect on the health of stock market.
14. Only short term buyers or sellers provide
effective exit route to the primary market.
15. Active secondary market provides liquidity
to the transactions in primary market.
16. What will be next term in the following
series?
A B B D C F D H E J
1) N 2) O 3) K
4) F 5) None of these
17. How many such digits are there in the num-
ber 3246759, each of which will occupy the
same position when rearranged in ascend-
ing order as in the number?
1) None 2) One 3) Two
4) Three 5) More than three
18. Shyam walked 6 metres facing towards
East, then took a right turn and walked a
distance of 9 metres. He then took a left
turn and walked a distance of 6 metres.
How far is he from the starting point?
1) 15 metres 2) 21 metres 3) 18 metres
4) Cannot be determined 5) None of these
19. If the position of the first and the sixth letters
in the word CONTAGIOUS are inter-
changed similarly the positions of the sec-
ond and the seventh letters are inter-
changed, and so on which letter will be the
second to the right of the fifth letter from the
right.
1)O 2) N 3) I 4) T 5) None of these
20. How many such pairs of letters are there in
the word RECRUIT, each of which has as
many letters between them in the word as
in the English alphabet?
1) None 2) One 3) Two
4) Three 5) More than three
S. ARUNMOHAN
Which channel does A like?
. . ... . .... ... .
. .. . .. .
REASONING
Key
1-5 2-5 3-1 4-3 5-4 6-3 7-3 8-2
9-5 10-1 11-2 12-1 13-1 14-4 15-1
16-4 17-2. 18-1 19-2 20-2.
Hints and Solutions
1. 5; I will be helpful in ensuring the supply of
mangoes even and proper. Hence, I is
advisable. II is also advisable because
the move will increase the demand and
will be helpful in reducing the problem -
the supply - demand mismatch.
2. 5; I will be helpful in restricting the situation
from being violent II is the real solutions.
It is necessary to make an effort to pun-
ish the guilty. Hence, both I and II are
advisable.
3.1; I is the right way, Hence I is advisable. II
is not advisable because it is a harsh
course of action and will aggravate the sit-
uation, causing resentment to the affected
parents.
4.3; Solution of the problem lies in either I or
II. I will reduce the burden on the exche-
quer whereas II will reduce the burden
on consumers.
5.4; I is a harsh course of action. Hence I is
not advisable II is not advisable because
un-due interference of the police should
be avoided in educational institutions.
6 -10
Marketing: H (DD), A (BBC), B (Aaj Tak)
Finance: C (Sony), F (NDTV), E (Star)
Production: D (ESPN), G(Zee)
6-3; 7-3; 8-2; 9-5; H, A and B
10-1; 11.2; 12-1; 13-1; 14-4; 15-1;
16-4; There are two series in the following
arrangement.
A B B D C F D H E J F
17-2; 3 2 4 6 7 5 9

2 3 4 5 6 7 9
18.1;
A - Starting point
D - End point
AD
2
= AE
2
+ ED
2
=AD
2
=12
2
+ 9
2
AD = 144 + 81 =

225 = 15m.
19.2; C O N T A G I O U S

G I O U S C O N T A
Now, the second to the right of the fifth
letter from the right end implies ( 5 -2 =) third
letter from the right end ie 'N'.
20.2;

A
C
B
E
D
6m
9m
6m
R E C R U I T
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college Of Fine Arts, Madhapur, Hyderabad- 81
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