CAT Questions

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The troposphere is the lowest layer of the Earth's atmosphere. The air is very well mixed and the temperature decreases with altitude. Air in the troposphere is heated from the ground up. The surface of the Earth absorbs energy and heats up faster than the air does.

Mixed economy is the most common economic system in the world.

A credit card's interest rate is the price you pay for borrowing money. For credit cards, the interest rates are typically stated as a yearly rate. This is called the annual percentage rate (APR). On most cards, you can avoid paying interest on purchases if you pay your balance in full each month by the due date.

Your APR is expressed in terms of a year, but credit card companies use it to calculate charges over your monthly statement period.

Indian river Brahmaputra is also known as Dihang.

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.

HOW IT WORKS (EXAMPLE):

For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.