Common Admission Test (CAT) Questions and Answers with Explanation

Q:

Which best describes the difference between stocks and bonds?

A) stocks allow investors to own a portion of the company; bonds are loans to the company	B) stocks are more reliable investment;bonds tend to be more volatile
C) stocks allow investors to share in profits;bonds make investors responsible for company debts	D) stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year

Answer & Explanation Answer: B) stocks are more reliable investment;bonds tend to be more volatile

Explanation:

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Filed Under: Bank Interview
Exam Prep: AIEEE , Bank Exams , CAT , GATE
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Q:

Which describes a clinical psychologist?

A) specialist who studies behavior and emotions, but cant prescribe medication	B) specialist in diagnosing and treating mental disorders who can prescribe medication
C) specialist working primarily with the family members of someone in psychiatric care	D) None of the above

Answer & Explanation Answer: A) specialist who studies behavior and emotions, but cant prescribe medication

Explanation:

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Filed Under: General Science
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Q:

Ancient music was produced by what type of culture?

A) modem	B) large
C) literate	D) All of the above

Answer & Explanation Answer: D) All of the above

Explanation:

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Q:

What was the city of Timbuktu best known for?

A) Trade	B) Gold
C) Diamonds	D) Tea

Answer & Explanation Answer: A) Trade

Explanation:

The great Sahara Desert created an opportunity for wealth by trading to peoples who live in and around the region. The city of Timbuktu was built as a result of this trade.

Hundreds of years ago, salt was a very valuable commodity. It was valued for its taste as well as its ability to preserve food. One of the most productive areas for producing salt was the Sahara Desert, and the city of Timbuktu was built to capitalize upon this trade.

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Filed Under: Indian Geography
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Q:

Where is the headquarters of National Centre for Good Governance?

A) Hyderabad	B) Kolkata
C) Ahmedabad	D) New Delhi

Answer & Explanation Answer: D) New Delhi

Explanation:

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Filed Under: General Awareness
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Q:

Select the correct statement regarding fixed costs.

A) Because they do not change, fixed costs should be ignored in decision making.	B) The fixed cost per unit decreases when volume increases.
C) The fixed cost per unit does not change when volume decreases.	D) The fixed cost per unit increases when volume increases.

Answer & Explanation Answer: B) The fixed cost per unit decreases when volume increases.

Explanation:

The fixed cost per unit decreases when volume increases is the correct statement regarding fixed costs.

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Filed Under: Accounts Payable
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Q:

Choose the correct order of electrical resistivity of metals.

A) Ag > W > Ni > Hg	B) Hg > Ni > W > Ag
C) Ag > Ni > Hg > W	D) Ag > W > Hg > Ni

Answer & Explanation Answer: B) Hg > Ni > W > Ag

Explanation:

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Filed Under: General Science
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Q:

In the following question, out of the four alternatives, select the alternative which is the best substitute of the phrase.

The punishment of being kept in school after hours.

A) Pretension	B) Isolate
C) Detention	D) Blender

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