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CAT 2003 Slot 1 — DILR Question 15

TablesEasy
Passage / Data

Answer the following question based on the information given below.

One of the functions of the Reserve Bank of India is to mobilize funds for the Government of India by issuing securities. The following table shows details of funds mobilized during the period July 2002-July 2003. Notice that on each date there were two rounds of issues, each with a different maturity.

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Which of the following is true?

Answer & solution

  • A

    The second round issues have a higher maturity than the first round for all dates.

  • B

    The second round issue of any date has a lower maturity only when the first round notified amount exceeds that of the second round.

  • On at least one occasion, the second round issue having lower maturity received a higher number of competitive bids.

  • D

    None of the above three statements is true.

Solution

The second round issue has lower maturity on 17 July-02, 09 April-03 and 04 June-03.

Of this on 04 June-03, the second round received higher competitive bids at 378 as compared to 187 in the first round.

Hence, option (c).

CAT 2003 Slot 1 DILR Q15: Which of the following is true? — Solution | TheCATExam