Index NumbersMCQPYQ May 18Question 3874 of 197

If the 1970 index with base 1965 is 200 and 1965 index with base 1960 is 150, what will be the index of 1970 on base 1960?

A200

B300

C500

D600

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

Correct Answer

✅ Option b — 300

We are given the indices for shifted bases: - Price Index of period 2 on base period 1 (

\displaystyle P_{12}

) = 200 - Price Index of period 1 on base period 0 (

\displaystyle P_{01}

) = 150 To find the index of period 2 on base period 0 (

\displaystyle P_{02}

), we apply the chain formula:

P_{02} = \frac{P_{01} \times P_{12}}{100} = \frac{150 \times 200}{100} = 300

Thus, the index of 1970 on base 1960 is 300. Hence, **Option B** 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.