Introduction
Preparing for the Higher Secondary School Teacher (Junior) Commerce examination requires a strong understanding of Accountancy, Business Studies, Economics, and Management concepts. To help aspirants boost their exam preparation, we have compiled 30 important and expected Commerce MCQs with correct answers, based on the latest syllabus and previous question patterns.
These questions are especially useful for Kerala PSC HST Junior Commerce, State PSC exams, and other Commerce teacher recruitment tests.
All Question Papers List Check Now
Higher Secondary School Teacher Junior Commerce Exam Questions with Answers – Question No. 1-15
Question 1: The software which is not used for checking plagiarism
A. Urkund
B. iThenticate
C. Latex
D. Turnitin
A. Urkund
B. iThenticate
C. Latex
D. Turnitin
Correct Answer: Option C – Latex
Question 2: Which of the following are ethical problems in research?
A. Plagiarism
B. Breach of confidentiality
C. Beneficence
D. Fidelity
E. Coercion
Choose the correct option:
A. A, B, D only
B. A, C, D only
C. A, D, E only
D. A, B, E only
A. Plagiarism
B. Breach of confidentiality
C. Beneficence
D. Fidelity
E. Coercion
Choose the correct option:
A. A, B, D only
B. A, C, D only
C. A, D, E only
D. A, B, E only
Correct Answer: Option D – A, B, E only
Question 3: T Score corresponding to Z-score of 2 is
A. 60
B. 70
C. 80
D. 30
A. 60
B. 70
C. 80
D. 30
Correct Answer: Option B – 70
Question 4: As variability due to chance decreases, the value of F will
A. Stay the same
B. Increase
C. Decrease
D. Can’t tell
A. Stay the same
B. Increase
C. Decrease
D. Can’t tell
Correct Answer: Option B – Increase
Question 5: A rule or formula that provides a basis for testing a null hypothesis is called
A. Population statistic
B. Population parameter
C. Test statistic
D. None of the above
A. Population statistic
B. Population parameter
C. Test statistic
D. None of the above
Correct Answer: Option C – Test statistic
Question 6: Homogeneous subsets in sampling are called
A. Strata
B. Clusters
C. Samples
D. Sample unit
A. Strata
B. Clusters
C. Samples
D. Sample unit
Correct Answer: Option A – Strata
Question 7: The abbreviation of ‘cf’ in research report means
A. Chapter from
B. Copied from
C. Cited frequently
D. Compare
A. Chapter from
B. Copied from
C. Cited frequently
D. Compare
Correct Answer: Option D – Compare
Question 8: A rational explanation of the value premium might argue that
A. There is only one risk factor
B. Risk differences explain the premium
C. Anomalies exist because of investor error
D. Mean reversion explains observed outcome
A. There is only one risk factor
B. Risk differences explain the premium
C. Anomalies exist because of investor error
D. Mean reversion explains observed outcome
Correct Answer: Option B – Risk differences explain the premium
Question 9: Which establishment delivers an assurance to the exporters?
A. Director General of Foreign Trade
B. RBI
C. Export Credit Guarantee Corporation
D. EXIM Bank
A. Director General of Foreign Trade
B. RBI
C. Export Credit Guarantee Corporation
D. EXIM Bank
Correct Answer: Option C – Export Credit Guarantee Corporation
Question 10: The situation in the bond market when the rate of interest falls to the lowest level and speculative demand for money becomes perfectly elastic
A. Liquidity trap
B. Infinite supply
C. Cash crunch
D. Zero money velocity
A. Liquidity trap
B. Infinite supply
C. Cash crunch
D. Zero money velocity
Correct Answer: Option A – Liquidity trap
Question 11: The broker issues a contract note to the investor within
A. 48 hours
B. 52 hours
C. 24 hours
D. 12 hours
A. 48 hours
B. 52 hours
C. 24 hours
D. 12 hours
Correct Answer: Option C – 24 hours
Question 12: The Securities Exchange Board of India was established in
A. 1992
B. 1982
C. 1965
D. 1962
A. 1992
B. 1982
C. 1965
D. 1962
Correct Answer: Option A – 1992
Question 13: Which among the following is a source of working capital for corporate institutions?
A. Treasury bills
B. Swaps
C. Certificate of deposits
D. Commercial paper
A. Treasury bills
B. Swaps
C. Certificate of deposits
D. Commercial paper
Correct Answer: Option D – Commercial paper
Question 14: The following statements are with reference to green bonds in India
1. Both public and private sector banks can issue such bonds
2. It is a low risk bond as repayment is tied to issuer rather than success of project
3. Green bond is a debt instrument issued for renewable as well as non-renewable energy projects
Which statement(s) is/are correct?
A. 2 and 3 only
B. 3 only
C. 1 and 2 only
D. None
1. Both public and private sector banks can issue such bonds
2. It is a low risk bond as repayment is tied to issuer rather than success of project
3. Green bond is a debt instrument issued for renewable as well as non-renewable energy projects
Which statement(s) is/are correct?
A. 2 and 3 only
B. 3 only
C. 1 and 2 only
D. None
Correct Answer: Option C – 1 and 2 only
Question 15: _________ combines economic, industry and company analysis to forecast future stock price
A. Random Walk Theory
B. Market Hypothesis
C. Technical Analysis
D. Fundamental Analysis
A. Random Walk Theory
B. Market Hypothesis
C. Technical Analysis
D. Fundamental Analysis
Correct Answer: Option D – Fundamental Analysis
Higher Secondary School Teacher Junior Commerce Exam Questions with Answers – Question No. 15-30
Question 16: The required rate of return on a security as per CAPM model is
A. Return on treasury bonds + Market risk premium
B. Return on government securities + Unsystematic risk premium
C. Return on corporate securities + Systematic risk premium
D. Return on individual securities + Beta premium
A. Return on treasury bonds + Market risk premium
B. Return on government securities + Unsystematic risk premium
C. Return on corporate securities + Systematic risk premium
D. Return on individual securities + Beta premium
Correct Answer: Option A – Return on treasury bonds + Market risk premium
Question 17: What is needed to have confirmation of a major market trend under the Dow theory?
A. Industry and utility averages must confirm each other
B. Transportation and utility averages must confirm each other
C. Transportation and industry averages must confirm each other
D. Utility average must lead the transportation average
A. Industry and utility averages must confirm each other
B. Transportation and utility averages must confirm each other
C. Transportation and industry averages must confirm each other
D. Utility average must lead the transportation average
Correct Answer: Option C – Transportation and industry averages must confirm each other
Question 18: Options on individual securities were introduced in
A. July 2001
B. June 2001
C. June 2010
D. July 2011
A. July 2001
B. June 2001
C. June 2010
D. July 2011
Correct Answer: Option A – July 2001
Question 19: ____________ is the difference in prices between two futures of different maturity dates on the same commodity.
A. Inter commodity spread
B. Contour spread
C. Intra commodity spread
D. Inter market spread
A. Inter commodity spread
B. Contour spread
C. Intra commodity spread
D. Inter market spread
Correct Answer: Option C – Intra commodity spread
Question 20: What is the full form of NSCCL?
A. National Share Exchange Clearing Centre (Limited)
B. National Stock Exchange Clearing Corporation (Limited)
C. National Stock Exchange Clearing Centre (Limited)
D. National Stock Exchange Clearing Company (Limited)
A. National Share Exchange Clearing Centre (Limited)
B. National Stock Exchange Clearing Corporation (Limited)
C. National Stock Exchange Clearing Centre (Limited)
D. National Stock Exchange Clearing Company (Limited)
Correct Answer: Option B – National Stock Exchange Clearing Corporation (Limited)
Question 21: The benchmark rate for interest rate swaps is
A. LIBOR
B. CRISIL
C. MIBOR
D. None of these
A. LIBOR
B. CRISIL
C. MIBOR
D. None of these
Correct Answer: Option C – MIBOR
Question 22: Which of the following is not an advantage of composition?
A. Simplicity
B. Lesser compliance
C. Reduced tax liability
D. No credit for input tax
A. Simplicity
B. Lesser compliance
C. Reduced tax liability
D. No credit for input tax
Correct Answer: Option D – No credit for input tax
Question 23: Tax invoice shall be issued within a period of __________ from the date of supply of services.
A. 30 days
B. 60 days
C. 40 days
D. 20 days
A. 30 days
B. 60 days
C. 40 days
D. 20 days
Correct Answer: Option A – 30 days
Question 24: Which section covers certain situations for demand and recovery of taxes in case of fraud etc.?
A. 75
B. 74
C. 84
D. 86
A. 75
B. 74
C. 84
D. 86
Correct Answer: Option B – Section 74
Question 25: The liability of advance tax arises only when income exceeds
A. ₹5,000
B. ₹20,000
C. ₹1,000
D. ₹10,000
A. ₹5,000
B. ₹20,000
C. ₹1,000
D. ₹10,000
Correct Answer: Option D – ₹10,000
Question 26: Which among the following is not eligible for 100% deduction?
A. National Illness Fund
B. Prime Minister’s National Relief Fund
C. Jawaharlal Nehru Memorial Fund
D. National Defence Fund
A. National Illness Fund
B. Prime Minister’s National Relief Fund
C. Jawaharlal Nehru Memorial Fund
D. National Defence Fund
Correct Answer: Option C – Jawaharlal Nehru Memorial Fund
Question 27: The HRA paid to an employee residing in Agra is exempt up to the lower of actual HRA, excess of rent paid over 10% of salary or
A. 60% of salary
B. 40% of salary
C. 50% of salary
D. 70% of salary
A. 60% of salary
B. 40% of salary
C. 50% of salary
D. 70% of salary
Correct Answer: Option B – 40% of salary
Question 28: B Ltd has an unabsorbed depreciation of ₹5,00,000 for the previous year. This can be carried forward
A. Indefinitely and set off against business income
B. Indefinitely and set off against any head of income
C. Cannot be carried forward
D. For a maximum of 8 years and set off against business income
A. Indefinitely and set off against business income
B. Indefinitely and set off against any head of income
C. Cannot be carried forward
D. For a maximum of 8 years and set off against business income
Correct Answer: Option B – Indefinitely and set off against any head of income
Question 29: Which among the following is an accounting record?
A. Bill of materials
B. Stores ledger
C. Bin card
D. All of these
A. Bill of materials
B. Stores ledger
C. Bin card
D. All of these
Correct Answer: Option B – Stores ledger
Question 30: Holiday pay given to workers is charged to
A. Factory overheads
B. Office overheads
C. Direct labour cost
D. Costing profit and loss account
A. Factory overheads
B. Office overheads
C. Direct labour cost
D. Costing profit and loss account
Correct Answer: Option A – Factory overheads
Conclusion
Practicing these 30 Higher Secondary School Teacher Junior Commerce MCQs with answers will help candidates strengthen their fundamentals and improve accuracy for the exam. Regular revision of such objective questions is essential to crack HST Junior Commerce, PSC Commerce Teacher, and Higher Secondary Teacher recruitment exams.
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