Read the following case let carefully and answer the question that follow Head of a nation on Nordic region was struggling with the slowing economy on one hand and restless citizens on other hand. In addition, his opponents were doing everything possible to discredit his government. As famous saying goes, ‘there is no smoke without a fire’, it cannot be said that the incumbent government was doing all the right things. There were reports of each acts of consumption had created a lot of problems for the government. It was being alleged that the government has given the right to exploit these public resources at throw away prices to some private companies. Some of the citizens were questioning the government policies in the supreme court as well as in the media. In the midst of all this, the head of the nation called his cabinet colleagues for a meeting on the recent happenings in the country. He asked his minister of water resources about the bidding process for allocation of rights to up mini hydel power plants. To this, the minister replied that his ministry had followed the laid put polices of the government. Water resources were allocated to those private companies that bid the highest and were technically competent. The minister continues that later on some new companies had shown interest and they were allowed to enter the sector as per the guidelines of the government. This the minister added, the rights at the price set by the highest bidders in the previous round of bidding. After hearing this, the head of nation replied that one would expect the later allocations to be done after a fresh round of bidding. The minister of water resources replied that his ministry had taken permission from the concerned ministries before allocating  the resources to the new companies Over the last 5 yr, bank of Bharat has seen the number of its retail customer accounts drop by over 40%. Over the same period, the share price of bank of Bharat has increased by more than 80%. This amazed a few investors, who believe that a bank’s share price should drop, it its number of customers drops. Which of the following, it true over the last five year, best accounts for the observed movement in the price of bank of Bharat’s equity shares? (a) 2 yr ago, securities and exchange board started an investigation on the bank for accounting irregularities but last year the company was cleared of all charges (b) the bank recently implemented a high publicised programme for free home loans (c) the bank has been switching its customer base from retail customers to commercial customers, which now accounts for over 75% of the bank’s revenues   (d) the bank is known to be the best paymaster in the industry

Question ID - 53175 | SaraNextGen Top Answer

Read the following case let carefully and answer the question that follow Head of a nation on Nordic region was struggling with the slowing economy on one hand and restless citizens on other hand. In addition, his opponents were doing everything possible to discredit his government. As famous saying goes, ‘there is no smoke without a fire’, it cannot be said that the incumbent government was doing all the right things. There were reports of each acts of consumption had created a lot of problems for the government. It was being alleged that the government has given the right to exploit these public resources at throw away prices to some private companies. Some of the citizens were questioning the government policies in the supreme court as well as in the media. In the midst of all this, the head of the nation called his cabinet colleagues for a meeting on the recent happenings in the country. He asked his minister of water resources about the bidding process for allocation of rights to up mini hydel power plants. To this, the minister replied that his ministry had followed the laid put polices of the government. Water resources were allocated to those private companies that bid the highest and were technically competent. The minister continues that later on some new companies had shown interest and they were allowed to enter the sector as per the guidelines of the government. This the minister added, the rights at the price set by the highest bidders in the previous round of bidding. After hearing this, the head of nation replied that one would expect the later allocations to be done after a fresh round of bidding. The minister of water resources replied that his ministry had taken permission from the concerned ministries before allocating  the resources to the new companies Over the last 5 yr, bank of Bharat has seen the number of its retail customer accounts drop by over 40%. Over the same period, the share price of bank of Bharat has increased by more than 80%. This amazed a few investors, who believe that a bank’s share price should drop, it its number of customers drops. Which of the following, it true over the last five year, best accounts for the observed movement in the price of bank of Bharat’s equity shares? (a) 2 yr ago, securities and exchange board started an investigation on the bank for accounting irregularities but last year the company was cleared of all charges (b) the bank recently implemented a high publicised programme for free home loans (c) the bank has been switching its customer base from retail customers to commercial customers, which now accounts for over 75% of the bank’s revenues   (d) the bank is known to be the best paymaster in the industry