Index NumbersMCQMTP May 19 Series IIQuestion 3832 of 197

Chain index is equal to

ALink relative of current year

BLink index of the current year

\displaystyle \times 100

\displaystyle \frac{\text{Link relative of PY} \times \text{Chain index of CY}}{100}

\displaystyle \frac{\text{Link relative of PY} \times \text{Chain index of PY}}{100}

For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option d — $\displaystyle \frac{\text{Link relative of PY} \times \text{Chain index of PY}}{100}$

ALink relative of current year
BLink index of the current year $\displaystyle \times 100$
C $\displaystyle \frac{\text{Link relative of PY} \times \text{Chain index of CY}}{100}$
D $\displaystyle \frac{\text{Link relative of PY} \times \text{Chain index of PY}}{100}$

The **Chain Index** for a current year is calculated as:

\text{Chain Index of CY} = \frac{\text{Link Relative of CY} \times \text{Chain Index of PY}}{100}

where CY is Current Year and PY is Previous Year. In the options, Option D correctly represents this relationship:

\frac{\text{Link relative of CY} \times \text{Chain Index of PY}}{100}

Note: In some options, it is printed with PY as the subscript for both, which is a typo in exam papers. The standard formula is

\displaystyle \frac{\text{Link relative of CY} \times \text{Chain index of PY}}{100}

. Hence, **Option D** is the correct answer.

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

Practice all 197 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.