Free Basic DI - 04 Practice Test - CAT 

Question 1

This curve gives you the number of species residing in a particular area (1,2,3…..11). The areas 1, 2 ,3 and 6 have been joined using a continuous line. What other points should this line pass through in order for the curve to exhibit “period of growth followed by saturation”

A. 7 ,11
B. 8,9,11
C. 8,10
D. 8,9


Solution : D

Option (d)

A curve should look like this if it has to exhibit “period of growth followed by saturation”

From the given graph, we can observe that joining the points 6, 8 and 9 will give us the desired curve.

(a) 7 ,11 This will exhibit a decline

(b) 8,9,11 till point 9, the curve will be as expected but after that it shows a decline

(c) 8,10 these points exhibits high growth and not saturation.

Question 2

 This curve gives you the number of species residing in a particular area (1,2,3…..11). What points on the given curve should be joined to get an “exponential growth” curve. It is mandatory to start with point 1

A. 1, 5, 8, 10
B. 1, 4,7,11
C. 1, 7, 9, 10
D. 1, 5, 6, 10


Solution : C

Option (c)

Option (a) : Linear growth

Option (b) : Growth followed by slump

Option (c) : exponential growth

Option (d) : linear growth with sudden increase for a brief period.

Question 3

This curve gives you the number of species residing in a particular area (1,2,3…..11). If all points in the given curve are joined in order 1-2-3-4-5-6-7----so-on-till—11, for how many sets of three points do we see growth followed by decline?(for eg, for the set 2-3-4, first it rises and then it declines)___


Solution :

If you visualize the given curve after joining the points as mentioned in the question, we will get the following figure

In this curve, the following sets exhibits the criteria mentioned in the question:

2-3-4, 5-6-7, 7-8-9, 9-10-11

Thus, totally 4 sets.

Question 4

 The graph given here depicts parabolic nature in between the period

A. 1998-2000
B. 2000-2003
C. 2001-2006
D. 1998-2003


Solution : C

(a) 1998-2000: it’s exponential increase

(b) 2000-2003: it’s exponential decrease

(c)2001-2006: it’s very close to parabolic

(d) 1998-2003: it first rises and then falls.

Question 5

Refer the graphs below to answer the following question:
In which of the following years is the contribution of IT industry to the GDP maximum (in value terms)?

A. 2002
B. 2003
C. 2005
D. 2004


Solution : B

You can directly mark the answer as option (b)without any calculation. From 2001-2003, both the graphs are increasing. Thus 2003 will have the maximum value among 2001, 2002 and 2003. But then there is a big dip in the second curve which cannot compensate the increase in the first curve. 

Thus, it is quite clear from the graphs that the maximum value can be only from 2003 or 2005.

Revenue from IT industry is same for both 2003 and 2005, but the % contribution to GDP for 2003 is higher than for 2005. Thus (b) is the answer

Question 6

Consider the following Time Distance graph. The graph shows four cars A, B, C and D racing on parallel tracks for a 40 km race.
With reference to graph, consider the following statements:

(1) A was the fastest of the lot in the beginning.
(2)The race was won by D.
(3) D was the slowest in the beginning.
(4) C was always ahead of D

Which of the following statements given above is/are correct?

A. 1,2 and 3 only
B. 1, 2 and 4 only
C. 2, 3 and 4 only
D. 1, 3 and 4 only


Solution : D

From the graph we can make the following conclusions

1) A was the fastest in the beginning (till around 30km mark)

2) D was the slowest till around 35 km mark

3) B won the race

So statements (1), (3) and (4) are true .

Question 7

 Which country has the highest price for its supply?

A. Pakistan
B. Turkey
C. Switzerland
D. India


Solution : C

 Option (c) Ratio of share of value to share of quantity for

Pakistan – little less than 1

Turkey – little greater than 1

Switzerland – much greater than 1

India – less than 1 

Hence Switzerland has the highest price for its supply.

Question 8

 What is the price in Euro/Kg for Turkey?

A. 6.3
B. 5.6
C. 4.8
D. 4.5


Solution : B

 Option (b) Since the quantity and value share are almost equal it will be approx Euro/kg = 5.6 Euro/kg

Question 9

The operating profit in 1991-92 increased over that in 1990-91 by

A. 23%
B. 22%
C. 25%
D. 24%


Solution : A

Required percentage increase in operating profit =


Question 10

The interest burden in 1991-92 was higher than that in 1990-91 by

A. 50%
B. Rs 25 lakh
C. 90%
D. Rs 41 lakh


Solution : B

Interest in 1990-91 = 30% of 130 = Rs 39 lakh

Interest in 1991-92 = 40% of 160 = Rs 64 lakh

Difference = (64 – 39) = Rs 25 lakh.

Question 11

If on an average, 20% rate of interest was charged on borrowed funds, then the total borrowed funds used by this company in the given 2 years amounted to


Rs 221 lakh


Rs 195 lakh


Rs 368 lakh


Rs 515 lakh


Solution : D

As calculated in the previous question, total interest = (39 + 64) = Rs 103 lakh

Given that, this interest is calculated on 20% of the borrowed fund.Hence, borrowed funds = (103×100)20 = Rs 515 lakh.

Question 12

The retained profit in 1991-92, as compared to that in 1990-91 was


higher by 2.5%


higher by 1.5%


lower by 2.5%


lower by 1.5%


Solution : D

Retained profit in 1900-91 = (25% of 130) = Rs 32.5 lakh

Retained profit in 1991-92 = (20% of 160) = Rs 32 lakh


Question 13

In the figure shown above, which curve exhibits both linear growth and saturation?.

A. B only
B. C only
C. D only
D. A only


Solution : C

Curve C is parabolic in nature. B is also parabolic up to a point and then it almost saturates. A shows exponential growth. D shown linear growth initially and then gradually the growth flattens and thus it saturates

Question 14

 After which year did Seeta's salary start to decline?

A. Second year
B. Third year
C. Fourth year
D. Never


Solution : A



Question 15

Whose salary grew at the fastest rate in the first two years?

A. Geeta
B. Seeta
C. Ram
D. Shyam


Solution : B

By observation of the slope of the lines we can conclude that Seeta’s salary has grown at the maximum rate in the first two months