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UPSC 1997: The behaviour of a fictitious stock market index (comprising a weighted average of the market prices of a selected list of companies including some multinational corporations (MNCs) over a 15-day period is shown in the graph. The behaviour of the MNC’s in the same period is also shown in the second graph. Which one of the following is a valid conclusion?
(a)MNC’s fell steeper in the period depicted
(b)Share prices of every non-MNC company soared by over 5% on the 12th day
(c)Government announced a policy disfavouring MNC’s on the 11th day
(d)Whatever be the reason favouring market revival on the 12th day, it appears to be relevant only to non-MNC companies
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Not attemptedCorrect Answer: (d) Whatever be the reason favouring market revival on the 12th day, it appears to be relevant only to non-MNC companies
The composite index rebounds sharply on the 12th day, while the separate MNC index keeps declining; hence whatever factor revived the overall market helped only the non-MNC shares. Options (a)–(c) over-generalise trends that are not supported by the graphs. ([edurev.in](https://edurev.in/t/203163/International-Solved-Questions--1995-2020--1?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 1997 Indian Economy question?▼
The correct answer is option (d): Whatever be the reason favouring market revival on the 12th day, it appears to be relevant only to non-MNC companies. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Financial Markets & Capital Markets question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1997, GS Paper 1, as Question 51. It falls under Indian Economy > Financial Markets & Capital Markets.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Financial Markets & Capital Markets?▼
UPSC has asked 39 questions from Financial Markets & Capital Markets (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.