PSC Buddy

Official PDFs

As published by the Kerala Public Service Commission.

All 79 questions with answers

Tap an option to check yourself, or open the answer. Answers follow the official Kerala PSC answer key.

  1. 1.
    Regarding a bill being a money bill the certificate of the
    Show answer and explanation
    Answer: C —
    Speaker of Loksabha is final
    Under Article 110(4) of the Constitution of India, the Speaker of the Lok Sabha has the final authority to certify a bill as a money bill.
    Report a mistake
  2. 2.
    Which of the following statements concerning the power of the president is wrong
    Show answer and explanation
    Answer: D —
    The president has the power to summon ,prorogue and dissolve Loksabha and Rajya sabha
    The President can summon, prorogue, and dissolve the Lok Sabha, but the Rajya Sabha is a permanent house and cannot be dissolved.
    Report a mistake
  3. 3.
    Which kind of Thullal form is used in the first work of kunjanNambiar(kallyana sougandhikam )
    Show answer and explanation
    Answer: A —
    Sheethangan Thullal
    Kunchan Nambiar's first work, Kalyana Sougandhikam, is written in the Sheethangan Thullal style.
    Report a mistake
  4. 4.
    Herman Gundert was a member of
    Show answer and explanation
    Answer: C —
    Basel Evangelical Missionary Society
    Herman Gundert was a German missionary associated with the Basel Evangelical Missionary Society.
    Report a mistake
  5. 5.
    The Movement demanded to quit election in Travancore ,claiming the negligence of adequate reservation for communal minorities
    Show answer and explanation
    Answer: B —
    Nivarthana Prakshobham
    The Nivarthana Prakshobham (Abstention Movement) in Travancore demanded adequate representation for communal minorities in the legislature.
    Report a mistake
  6. 6.
    The Novel ' Narmani Putava' written by
    Show answer and explanation
    Answer: B —
    Sara Thomas
    The novel 'Narmani Putava' was written by Sara Thomas.
    Report a mistake
  7. 7.
    ' I Too Had A Dream ' is an autobiography of
    Show answer and explanation
    Answer: A —
    Dr.Varghese kurien
    'I Too Had A Dream' is the autobiography of Dr. Verghese Kurien, the father of the White Revolution in India.
    Report a mistake
  8. 8.
    Original name of famous personality' Vagbhadanandan'
    Show answer and explanation
    Answer: D —
    Kunjikannan
    The original name of the social reformer Vagbhadanandan was Kunjikannan.
    Report a mistake
  9. 9.
    " It is better to light a candle than to curse the darkness" is the motto of
    Show answer and explanation
    Answer: C —
    Amnesty International
    The motto 'It is better to light a candle than to curse the darkness' belongs to Amnesty International.
    Report a mistake
  10. 10.
    The first malayalee recipient of the Saraswathi Samman
    Show answer and explanation
    Answer: D —
    Balamani Amma
    Balamani Amma was the first Malayali to receive the Saraswathi Samman in 1995.
    Report a mistake
  11. 11.
    Societies which are bond to keep fluid resources are
    Show answer and explanation
    Answer: A —
    Societies having deposits
    Societies that accept deposits are required to maintain fluid resources to ensure liquidity.
    Report a mistake
  12. 12.
    Among the following which is not the privileges of a Consumer Co-operative Society
    Show answer and explanation
    Answer: B —
    Exemption from income tax
    Consumer co-operative societies do not enjoy general exemption from income tax.
    Report a mistake
  13. 13.
    The amendment of the bye-law shall have approval from
    Show answer and explanation
    Answer: D —
    General Body
    The General Body is the supreme authority in a co-operative society and must approve amendments to bye-laws.
    Report a mistake
  14. 14.
    Rule 6 of Kerala Co-operative Societies Act deals with
    Show answer and explanation
    Answer: B —
    Model bye-law
    Rule 6 of the Kerala Co-operative Societies Rules specifically pertains to the model bye-laws for societies.
    Report a mistake
  15. 15.
    Which type of societies are allowed to admit any other society as nominal or associate member
    Show answer and explanation
    Answer: D —
    Hospital Societies
    Hospital societies are permitted to admit other societies as nominal or associate members under specific provisions.
    Report a mistake
  16. 16.
    Which of the following would be classified by Herzberg as a hygiene factor?
    Show answer and explanation
    Answer: B —
    Company policy
    Herzberg's Two-Factor Theory classifies company policy as a hygiene factor, while achievement, promotion, and responsibility are motivators.
    Report a mistake
  17. 17.
    Achievement motivation relates to
    Show answer and explanation
    Answer: A —
    Need of the person
    Achievement motivation is fundamentally driven by an individual's psychological need to achieve success.
    Report a mistake
  18. 18.
    A transformational leader is one
    Show answer and explanation
    Answer: C —
    who inspires the workers to new levels by offering them a vision of a better future
    Transformational leadership focuses on inspiring followers through a shared vision and future goals.
    Report a mistake
  19. 19.
    Decision making does not include:
    Show answer and explanation
    Answer: D —
    making forecast
    While forecasting may inform a decision, it is a separate analytical process from the act of decision-making itself.
    Report a mistake
  20. 20.
    The most democratic form of oraganisation is
    Show answer and explanation
    Answer: D —
    committee
    Committees allow for collective decision-making, making them the most democratic organizational structure.
    Report a mistake
  21. 21.
    The time limit for filing a complaint before the District forum under Consumer Protection Act, 1986,is
    Show answer and explanation
    Answer: B —
    Two years
    Under the Consumer Protection Act, 1986, the limitation period for filing a complaint is two years from the date on which the cause of action has arisen.
    Report a mistake
  22. 22.
    Mr.A entered into a contract with Mr.B whereby Mr.A agreed to sell heroin an illegal substance, worth Rs.50,000 to Mr.B. This is an example for:
    Show answer and explanation
    Answer: A —
    Void contract
    A contract involving an illegal object is void ab initio under the Indian Contract Act.
    Report a mistake
  23. 23.
    Section 172 of Contract Act deals with :
    Show answer and explanation
    Answer: B —
    Pledge
    Section 172 of the Indian Contract Act, 1872, defines a pledge as the bailment of goods as security for payment of a debt or performance of a promise.
    Report a mistake
  24. 24.
    The outside third party who is brought into settle a dispute and has the authority to take a decision is called:
    Show answer and explanation
    Answer: C —
    An arbitrator
    An arbitrator is a neutral third party appointed to resolve disputes outside of court, whose decision is binding.
    Report a mistake
  25. 25.
    Which of the following transactions does not come under the purview of bailment?
    Show answer and explanation
    Answer: D —
    Placing ornaments in bank locker
    Placing ornaments in a bank locker is generally considered a lease of the locker space rather than a bailment of the contents, as the bank does not have possession or control over the items.
    Report a mistake
  26. 26.
    The term of a patent is:
    Show answer and explanation
    Answer: C —
    20 Years
    Under the Patents Act, 1970, the term of a patent is 20 years from the date of filing the application.
    Report a mistake
  27. 27.
    'Novation' is a mode of discharge of contract by:
    Show answer and explanation
    Answer: B —
    agreement
    Novation occurs when the parties to a contract agree to substitute a new contract for the old one, thereby discharging the original contract.
    Report a mistake
  28. 28.
    From the following identify a statement that is not true:
    Show answer and explanation
    Answer: D —
    Authority given to sell goods authorises the agent to borrow money by pledging the goods
    Authority to sell goods does not automatically grant the agent the authority to pledge those goods to borrow money.
    Report a mistake
  29. 29.
    Who is the Chairman of the Central Consumer Protection Council?
    Show answer and explanation
    Answer: D —
    Minister in Charge of Consumer Affairs
    The Central Consumer Protection Council is chaired by the Minister in charge of the Department of Consumer Affairs in the Central Government.
    Report a mistake
  30. 30.
    Who appoints the State Chief Information Commissioner under 'The Right to Information Act, 2005' ?
    Show answer and explanation
    Answer: B —
    Governor
    Under the RTI Act, 2005, the State Chief Information Commissioner is appointed by the Governor of the state.
    Report a mistake
  31. 31.
    The Consumer Education and Research Centre is located at :
    Show answer and explanation
    Answer: B —
    Ahmedabad
    The Consumer Education and Research Centre (CERC) is a well-known consumer organization based in Ahmedabad.
    Report a mistake
  32. 32.
    The damages that can be awarded even if the aggrieved party has not suffered any loss, is referred to as:
    Show answer and explanation
    Answer: D —
    nominal damages
    Nominal damages are awarded when a legal right has been infringed, but no actual financial loss has been proven.
    Report a mistake
  33. 33.
    From the following, identify the one which is not a main objective of 'The Right to Information Act,2005;
    Show answer and explanation
    Answer: C —
    To have provisions to ensure maximum disclosure and maximum exemption consistent with Const itutional Provisions
    The Act aims for maximum disclosure and minimum exemptions, not maximum exemptions.
    Report a mistake
  34. 34.
    The Telecom Regulatory Authority of India was established in -------------
    Show answer and explanation
    Answer: C —
    1997
    TRAI was established by the Telecom Regulatory Authority of India Act, 1997.
    Report a mistake
  35. 35.
    Regulatory environment consists
    Show answer and explanation
    Answer: C —
    (A) and (B) both
    The regulatory environment encompasses government policies and regulations that affect business operations, including trade and pricing.
    Report a mistake
  36. 36.
    GDP consists
    Show answer and explanation
    Answer: D —
    All of the above
    GDP is the total market value of all final goods and services produced within a country in a given period.
    Report a mistake
  37. 37.
    Which one of the following is not a characteristic of capitalist economic system
    Show answer and explanation
    Answer: A —
    Central economic planning
    Central economic planning is a characteristic of a socialist or command economy, not a capitalist one.
    Report a mistake
  38. 38.
    . EXIM Policy, 2002-07 started from
    Show answer and explanation
    Answer: A —
    31-03-2002
    The EXIM Policy 2002-07 was announced to be effective from 31st March 2002.
    Report a mistake
  39. 39.
    The economic environment of a business includes
    Show answer and explanation
    Answer: D —
    All of the above
    The economic environment is a broad concept including the economic system, policies, and current conditions.
    Report a mistake
  40. 40.
    The Finance Act 2012 gives income tax rates for Assessment Year
    Show answer and explanation
    Answer: D —
    2013-14
    The Finance Act of a specific year generally prescribes the tax rates for the following Assessment Year.
    Report a mistake
  41. 41.
    The Environment Protection Act came into force from
    Show answer and explanation
    Answer: A —
    1986
    The Environment (Protection) Act was enacted in 1986.
    Report a mistake
  42. 42.
    Which of the following is limitation of Environmental Analysis
    Show answer and explanation
    Answer: D —
    All of the above
    Environmental analysis is a tool with inherent limitations regarding predictive power and guarantee of success.
    Report a mistake
  43. 43.
    Which of the following is not the advantage of socialism
    Show answer and explanation
    Answer: C —
    State Capitalism
    State capitalism is often viewed as a critique or a specific form of economic organization, not an inherent advantage of socialism.
    Report a mistake
  44. 44.
    A mixed economy is ...... a planned eco nomy
    Show answer and explanation
    Answer: A —
    Necessarily
    A mixed economy necessarily incorporates elements of a planned economy alongside market mechanisms.
    Report a mistake
  45. 45.
    "A good environment is good business." Who said ?
    Show answer and explanation
    Answer: B —
    Dr. M.S. Swaminathan
    This quote is attributed to the agricultural scientist Dr. M.S. Swaminathan.
    Report a mistake
  46. 46.
    SWOT analysis forming part of ………….
    Show answer and explanation
    Answer: A —
    Strategy formulation
    SWOT analysis is a fundamental step in the strategy formulation process.
    Report a mistake
  47. 47.
    The first Five Year Plan was launched in the year
    Show answer and explanation
    Answer: C —
    1951
    India's first Five Year Plan was launched in 1951.
    Report a mistake
  48. 48.
    Indian Institute of Science is established by
    Show answer and explanation
    Answer: A —
    Tata
    The Indian Institute of Science (IISc) was established with the active support of Jamsetji Tata.
    Report a mistake
  49. 49.
    According to BCG matrix a business which has a high growth rate but a weak market share is referred to as
    Show answer and explanation
    Answer: D —
    Question Mark
    In the BCG matrix, a business with high market growth and low relative market share is called a Question Mark.
    Report a mistake
  50. 50.
    Who is the present Governor of RBI
    Show answer and explanation
    Answer: D —
    Raghuram Rajan
    Raghuram Rajan was the Governor of RBI at the time of the examination.
    Report a mistake
  51. 51.
    Which is the first bank to introduce ATM?
    Show answer and explanation
    Answer: B —
    HSBC
    HSBC introduced the first ATM in India in Mumbai in 1987.
    Report a mistake
  52. 52.
    Which bank is known as the Banker's Bank
    Show answer and explanation
    Answer: B —
    RBI
    The Reserve Bank of India (RBI) serves as the central bank and is known as the banker's bank.
    Report a mistake
  53. 53.
    An efficient capital market is one where
    Show answer and explanation
    Answer: C —
    Security prices always rationally reflect all relevant information
    An efficient capital market is characterized by security prices fully and rationally reflecting all available information.
    Report a mistake
  54. 54.
    IFSC is an ________ digit code
    Show answer and explanation
    Answer: D —
    11
    The Indian Financial System Code (IFSC) is an 11-character alphanumeric code.
    Report a mistake
  55. 55.
    EFT stands for
    Show answer and explanation
    Answer: D —
    Electronic Funds Transfer
    EFT stands for Electronic Funds Transfer.
    Report a mistake
  56. 56.
    ________ act as a consortium leader of the banking institutions in the district
    Show answer and explanation
    Answer: A —
    Lead Bank
    The Lead Bank scheme designates a specific bank to act as a consortium leader for banking development in a district.
    Report a mistake
  57. 57.
    Cheque in circulation for more than six months fron the date of the cheque is a
    Show answer and explanation
    Answer: C —
    Stale cheque
    A cheque presented after six months from its date of issue is considered a stale cheque.
    Report a mistake
  58. 58.
    ______ means signing on the back of a negotiable instrument with a view to transfer the title of the instrument to another person
    Show answer and explanation
    Answer: D —
    Endorsement
    Endorsement involves signing a negotiable instrument to transfer its ownership to another party.
    Report a mistake
  59. 59.
    RTGS has been implemented in India w.e.f.
    Show answer and explanation
    Answer: A —
    26 March 2004
    Real Time Gross Settlement (RTGS) was officially launched in India on 26 March 2004.
    Report a mistake
  60. 60.
    First stock exchange in India is
    Show answer and explanation
    Answer: A —
    NSC
    This question was cancelled in the final answer key.
    Report a mistake
  61. 61.
    Blue chip shares means
    Show answer and explanation
    Answer: C —
    Those shares on whom dividend is paid at higher rate regularly
    Blue chip shares belong to financially stable companies that regularly pay high dividends.
    Report a mistake
  62. 62.
    Days of grace are allowed to
    Show answer and explanation
    Answer: C —
    Time Bill
    Days of grace are typically added to time bills (usance bills) and promissory notes payable at a certain period after date or sight.
    Report a mistake
  63. 63.
    In India 14 commercial Banks were nationalized in the year
    Show answer and explanation
    Answer: B —
    1969
    Fourteen major commercial banks were nationalized in India on July 19, 1969.
    Report a mistake
  64. 64.
    Crossing of the cheque can be made by
    Show answer and explanation
    Answer: C —
    Any holder
    A cheque can be crossed not only by the drawer but also by the holder or banker under certain provisions of the Negotiable Instruments Act.
    Report a mistake
  65. 65.
    Accounting principles are acceptable when they, in general, satisfy the basic norms
    Show answer and explanation
    Answer: C —
    Usefulness, Objectivity and Feasibility
    Generally accepted accounting principles must be useful, objective, and feasible to apply.
    Report a mistake
  66. 66.
    The term ‘playing safe’ relate to
    Show answer and explanation
    Answer: A —
    Convention of conservatism
    The convention of conservatism (or prudence) dictates that accountants should 'play safe' by anticipating no profits but providing for all possible losses.
    Report a mistake
  67. 67.
    Which of the following method does not consider as a Method of Depreciation?
    Show answer and explanation
    Answer: D —
    Striking Product Method
    Striking Product Method is not a recognized standard method of depreciation in accounting.
    Report a mistake
  68. 68.
    According to Rolland, Trail balance is defined as “the final list of balances, ---------”
    Show answer and explanation
    Answer: C —
    totalled and combined
    According to Rolland, a trial balance is the final list of balances, totalled and combined.
    Report a mistake
  69. 69.
    The case Gurner V/s Murray relate to
    Show answer and explanation
    Answer: D —
    Insolvency of a partner
    The Garner v. Murray case is a landmark legal precedent concerning the distribution of losses in the event of the insolvency of a partner.
    Report a mistake
  70. 70.
    The term ‘credit’ derived from the Latin word
    Show answer and explanation
    Answer: A —
    Credre
    The term 'credit' is derived from the Latin word 'credere', which means 'to believe' or 'to trust'.
    Report a mistake
  71. 71.
    Mr.A, Mr.B are partners. Their old profit sharing ratio was 3:1. Mr. A surrendered 1/32 of his share and Mr. B surrendered 3/32 of his share in favor of Mr.C. Calculate Sacrificing ratio of A & B.
    Show answer and explanation
    Answer: A —
    3/128:3/128
    The sacrificing ratio is the ratio of the shares surrendered by the partners. Here, A sacrifices 1/32 of his share (3/4 * 1/32 = 3/128) and B sacrifices 3/32 of his share (1/4 * 3/32 = 3/128). Thus, the ratio is 3/128 : 3/128.
    Report a mistake
  72. 72.
    As per section 128 of the Companies Act, managerial remuneration is
    Show answer and explanation
    Answer: A —
    11 % of Net Profit
    Under the Companies Act, the overall maximum managerial remuneration payable by a public company to its directors and manager shall not exceed 11% of the net profits.
    Report a mistake
  73. 73.
    Green Limited had total purchases of Rs. 80,000 during the year. The opening and closing balance of creditors were Rs.20,000 and 30,000 respectively. Payments made to creditors during the year were Rs 60,000. Discount received was Rs 2,000. The credit purchases during the year ---------
    Show answer and explanation
    Answer: B —
    72,000
    Credit Purchases = Closing Creditors + Payments + Discount Received - Opening Creditors = 30,000 + 60,000 + 2,000 - 20,000 = 72,000.
    Report a mistake
  74. 74.
    The RBI appointed a committee under the chairmanship of K.B Chore in April --------- to review the working of cash credit system.
    Show answer and explanation
    Answer: B —
    1979
    The Chore Committee was appointed by the RBI in 1979 to review the cash credit system.
    Report a mistake
  75. 75.
    Irrelevance theory of capital structure , assumptions does not include
    Show answer and explanation
    Answer: D —
    None of these
    The Modigliani-Miller irrelevance theory assumes no corporate taxes, constant cost of debt, and that the cost of debt is lower than the cost of equity.
    Report a mistake
  76. 76.
    A company expects a net income of Rs 80,000. It has Rs 2,00,000 debentures of 8% rate of interest. The equity capitalization rate of the company is 10 %. Compute overall capitalization rate according to Net Income Approach, ignoring income tax.
    Show answer and explanation
    Answer: D —
    9.52%
    Under the Net Income Approach, Value of Equity = (Net Income - Interest) / Ke = (80,000 - 16,000) / 0.10 = 6,40,000. Total Value = 6,40,000 + 2,00,000 = 8,40,000. Overall Capitalization Rate = Net Operating Income / Total Value = 80,000 / 8,40,000 = 9.52%.
    Report a mistake
  77. 77.
    A ‘Yen note’ floated in Germany is an example of
    Show answer and explanation
    Answer: A —
    Euro bond
    A bond denominated in a currency other than that of the country in which it is issued is called a Eurobond.
    Report a mistake
  78. 78.
    Research and Development expenditure is an example of
    Show answer and explanation
    Answer: C —
    Deferred revenue expenditure
    R&D expenditure is typically treated as deferred revenue expenditure as it provides benefits over multiple future periods.
    Report a mistake
  79. 79.
    Section ---------- for buy back of shares as per Companies Act 1956
    Show answer and explanation
    Answer: C —
    77
    Section 77A of the Companies Act, 1956 (often referred to as Section 77 in shorthand) deals with the buy-back of shares.
    Report a mistake

Try the whole paper in one go

Answer all 79 questions first and see your score at the end.

Practise as a mock test →

How Kerala PSC marks objective papers

  • 1 mark for each right answer.
  • 1/3 mark is taken off for each wrong answer.
  • Questions you leave blank don’t lose marks.
  • Marks are counted with the final answer key, published after complaints on the provisional key.

Found a wrong answer or a typo on this page? Report it and we’ll check it against the official key.

More papers to practise

Papers for the same or similar posts.

All question papers

Not affiliated with the Kerala Public Service Commission. Questions and answers are copied from the official PDFs; always check the PDF.