# IIFT 2017 DI

Paper year paper questions for IIFT 2017 DI

**Answer the following question based on the information given below.**

Exhibit 1 as under provides the data of India’s Merchandize Imports (Billion US Dollar) on left axis and percentage exports of Food, Fuel, Manufactures and Ores & Metals on the right axis. Attempt the question in the context of information provided as under:

a. Trade Balance = Imports minus Exports

b. Trade Deficit = If Imports are more than Exports

c. Trade Surplus = If Exports are more than Imports

**Exhibit 1 : India’s Total Merchandize Imports (US Dollar in Billion) and Percentage Imports of Food, Fuel, Manufactures and Ores & Metals (2012-2016)**

**Exhibit 2 : India’s Total Merchandize Exports (US Dollar in Billion) and Percentage Exports of Food, Fuel, Manufactures and Ores & Metals (2012-2016)**

****

**1. IIFT 2017 DI | DI - Tables & Graphs**

What shall be the approximate Manufacturers exports of India in the year 2016 based on average exports for the period 2012 – 2016?

- A.
221 Billion US Dollar

- B.
209 Billion US Dollar

- C.
239 Billion US Dollar

- D.
236 Billion US Dollar

Answer: Option A

**Explanation** :

Average exports for the period 2012 - 2016 = (275 + 350 + 325 + 275 + 250)/5

= 1475/5 = 295 Billion US Dollar

Manufacturers export is 75% of the total exports for 2016.

∴ Approximate Manufacturers exports in 2016 = 0.75 × 295 ≈ 221 Billion US Dollar

Hence, option 1.

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**2. IIFT 2017 DI | DI - Tables & Graphs**

What is the proportion of positive and negative Manufacturers trade balance in the period 2012-2016?

- A.
3:2

- B.
2:3

- C.
1:4

- D.
None of the Above

Answer: Option B

**Explanation** :

Manufacturers Trade Balance = Manufacturers Imports − Manufacturers Exports

Manufacturers Imports and Exports for each year are:

2012: Imports = 35% of 500 = 175 and Exports = 65% of 275 = 178.75 i.e.** Trade Balance = Negative**

2013: Imports = 40% of 475 = 190 and Exports = 60% of 350 = 210 i.e. **Trade Balance = Negative**

2014: Imports = 45% of 450 = 202.5 and Exports = 55% of 325 = 178.75 i.e. **Trade Balance = Positive**

2015: Imports = 50% of 375 = 187.5 and Exports = 70% of 275 = 192.5 i.e. **Trade Balance = Negative**

2016: Imports = 55% of 350 = 192.5 and Exports = 75% of 250 = 187.5 i.e. **Trade Balance = Positive**

Thus, there are three instances when the trade balance is negative and two instances when the trade balance is positive.

∴ Required ratio = 2 : 3

Hence, option 2.

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**3. IIFT 2017 DI | DI - Tables & Graphs**

In which year, trade deficit of fuel has been the second lowest?

- A.
2015

- B.
2014

- C.
2013

- D.
2016

Answer: Option A

**Explanation** :

Trade Deficit will exist if Imports exceed Exports for a certain year. Hence, find the value of Imports − Exports for each year.

2012: (40% of 500) − (20% of 275) = 200 − 55 = 145

2013: (45% of 475) − (25% of 350) = 213.75 − 87.5 = 126.25

2014: (40% of 450) − (20% of 325) = 180 − 65 = 115

2015: (30% of 375) − (10% of 275) = 112.5 − 27.5 = 85

2016: (25% of 350) − (10% of 250) = 87.5 − 25 = 62.5

Thus, the second lowest trade deficit is in 2015.

Hence, option 1.

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**4. IIFT 2017 DI | DI - Tables & Graphs**

Assuming India’s imports and exports grow by 10% in 2017 and sectoral share of fuel in both imports and exports grow by 5 percentage basis, what shall be the approximate deficit of fuel trade in the year 2017?

- A.
88 Billion Fuel Trade Deficit

- B.
74 Billion Fuel Trade Deficit

- C.
85 Billion Fuel Trade Deficit

- D.
78 Billion Fuel Trade Deficit

Answer: Option B

**Explanation** :

India’s imports in 2017 = 1.1 × 350 = 385 Billion USD

India’s exports in 2017 = 1.1 × 250 = 275 Billion USD

The share of fuel in imports and exports is now 30% and 15% respectively.

∴ New trade deficit = (30% of 385) − (15% of 275) = 115.5 − 41.25 = 74.25 Billion USD

Hence, option 2.

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**5. IIFT 2017 DI | DI - Tables & Graphs**

Assuming India’s absolute trade deficit grows by 54 Billion US Dollar and exports become 324 Billion US Dollars in the year 2017. What shall be India’s absolute imports of food and fuel in 2017 if sectoral composition of food, fuel, manufacture, ores and metals remain same as that of 2016?

- A.
36 Billion US Dollar & 119.5 Billion US Dollar

- B.
38 Billion US Dollar & 117.5 Billion US Dollar

- C.
34 Billion US Dollar & 118.5 Billion US Dollar

- D.
38 Billion US Dollar & 116.5 Billion US Dollar

Answer: Option A

**Explanation** :

Absolute Trade Deficit in 2016 = 350 − 250 = 100 Billion USD

∴ New absolute Trade Deficit = 100 + 54 = 154 Billion USD

Since exports in 2017 = 324 Billion USD, imports in 2017 = 324 + 154 = 478 Billion USD.

Imports of Fuel in 2017 = 25% of 478 = 119.5 Billion USD

Hence, option 1.

**Note:**

You need not check for Food as the options have been eliminated, but you can verify that it comes to approximately 36 Billion USD.

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**Answer the following question based on the information given below.**

The table as under provides the monthly prices in US Dollars Per Tonne of Barley, Wheat, Maize and Sorghum for the period July 2016 to June 2017. Attempt the questions given as under in the context of information provided.

**6. IIFT 2017 DI | DI - Tables & Graphs**

n which of the following months does wheat have the third highest percentage growth in monthly prices?

- A.
June 2017

- B.
February 2017

- C.
January 2017

- D.
None of these

Answer: Option B

**Explanation** :

Observe that the first growth in wheat prices is in January 2017. So, consider only the period from Jan 2017 to Jun 2017. Within this ignore Mar and Apr as wheat prices have dropped in these months. Hence, consider only Jan, Feb, May and Jun 2017.

Jan 2017: [(137 − 123)/123] × 100 = 11.38%

Feb 2017: [(147 − 137)/137] × 100 = 7.3%

May 2017: [(146 − 138)/138] × 100 = 5.8%

Jun 2017: [(157 − 146)/146] × 100 = 7.53%

Hence, the third highest growth was in February 2017.

Hence, option 2.

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**7. IIFT 2017 DI | DI - Tables & Graphs**

How many times has double digit growth in monthly prices occured across the commodities in the given time period?

- A.
2

- B.
3

- C.
5

- D.
None of the above

Answer: Option D

**Explanation** :

Here the question requires you to find the number of times that the monthly price of any commodity has increased by atleast 10 US Dollars.

The number of times it has happened for each product is: Barley - 0; Wheat - 3; Maize - 0; Sorghum - 1

Thus, the required growth has happened four times.

Hence, option 4.

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**Answer the following question based on the information given below.**

India has 13 major ports, out of which 6 ports are located on the Eastern Coast and 6 parts are on the Western Coast of India. The 13th port is at Port Blair, located in Andaman & Nicobar Island, which has negligible cargo traffic. Table below provides the traffic data handled by 12 major ports (thousand tonnes) of India for the period 2011-12 to 2015-16. Based on the table, answer the questions:

**8. IIFT 2017 DI | DI - Tables & Graphs**

In which year is the average growth of all ports the highest?

- A.
2014-15

- B.
2015-16

- C.
2013-14

- D.
2012-13

Answer: Option A

**Explanation** :

The total traffic of all ports in each year is to be found. The highest growth in total traffic is also the highest average growth.

As can be seen, the highest growth is in 2014-15.

Hence, option 1.

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**9. IIFT 2017 DI | DI - Tables & Graphs**

Which of the following ports has registered the third highest growth in traffic (000) from year 2011-12 to 2015-16?

- A.
Paradip

- B.
Chidambaranar

- C.
Kandla

- D.
None of these

Answer: Option D

**Explanation** :

The ports of Vizag, Chennai, Mormugao and J.N.P.T. can be ignored as they have shown a drop in traffic. The actual growth in traffic for the other ports is as shown below:

Thus, the third highest growth is for the port of Kamarajar.

Hence, option 4.

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**10. IIFT 2017 DI | DI - Tables & Graphs**

What shall be the approximate traffic (000) of Kolkata, Vizag and Cochin ports in 2017-18 if traffic continues to grow at the annual growth rate of 10% per annum in each of these ports?

- A.
156500

- B.
142300

- C.
129500

- D.
161775

Answer: Option A

**Explanation** :

Total required traffic = (50195 + 57033 + 22099) × 1.1 × 1.1 = 156486 ('000s).

The value closest to this is 156500.

Hence, option 1.

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**Answer the following question based on the information given below.**

The table below relates to data on Wholesale Price of India (WPI) for the period 2001-02 to 2015-16. WPI-based inflation is defined as percentage change in the value of the Index. Based on the table, answer the following questions:

**11. IIFT 2017 DI | DI - Tables & Graphs**

What is the approximate percentage change in the WPI of F&P between 2001-02 and 2015-16?

- A.
115.5

- B.
122.2

- C.
130.7

- D.
136.4

Answer: Option B

**Explanation** :

F&P in 2001-02 = 226.7 (considering 1993-94 as base)

F&P in 2015-16 = 179.8 if the F&P Index in 2004-05 = 100

However, F&P index in 2004-05 = 280.2 (considering 1993-94 as base)

∴ F&P in 2015-16 = 179.8 × (280.2/100) = 503.8

∴ Percentage change = [(503.8 − 226.7)/226.7] × 100 = 122.23%

Hence, option 2.

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**12. IIFT 2017 DI | DI - Tables & Graphs**

Between 2001-02 and 2015-16, which of the following components – PA, AC, F&P and MP – have shown the second highest percentage increase in WPI?

- A.
PA

- B.
AC

- C.
F&P

- D.
MP

Answer: Option C

**Explanation** :

Consider the solution to the previous question.

Percentage increase of F&P = 122.2%

Find the percentage increase for the other components:

PA: 2001-02 = 168.4 and 2015-16 = 249.6 × (188.1/100) = 469.5

∴ % increase = [(469.5 − 168.4)/168.4] × 100 = 178.8%

AC: 2001-02 = 161.3 and 2015-16 = 176.7 × (187.3/100) = 330.9

∴ % increase = [(330.9 − 161.3)/161.3] × 100 = 105.1%

MP: 2001-02 = 144.3 and 2015-16 = 153.4 × (166.3/100) = 255.1

∴ % increase = [(255.1 − 144.3)/144.3] × 100 = 76.78%

Thus, the second highest percentage increase in F&P.

Hence, option 3.

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**13. IIFT 2017 DI | DI - Tables & Graphs**

Between 2001-02 and 2015-16 which year has recorded the smallest percentage increase in WPI on FA?

- A.
2003-04

- B.
2004-05

- C.
2015-16

- D.
None of the above

Answer: Option A

**Explanation** :

Instead of calculating, this question can be solved by observation.

The actual increase in WPI on FA is lowest in 2003-04. By observation, its percentage % is also lowest in this year.

Hence, option 1.

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**14. IIFT 2017 DI | DI - Tables & Graphs**

If PA has a 40 percent weightage in the WPI-based inflation calculation in 2005-06, find the corresponding approximate percentage weight assigned assigned to F&P and MP in the WPI- based inflation calculation for the same year.

- A.
12 and 48

- B.
15 and 45

- C.
18 and 42

- D.
20 and 40

Answer: Option A

**Explanation** :

Let the weight given to F&P and MP be a% and b% respectively.

Since PAS has a 40% weightage, these two commodities should have a combined weightage of 60%.

∴ a + b = 0.6 ... (i)

Also, using these weightages: (0.4)(104.3) + 113.6a + 102.4b = 104.5

∴ 113.6a + 102.4b = 62.78 ... (ii)

On solving: a = 0.12 and b = 0.48

Thus, the weights for F&P and MP are 12% and 48% respectively.

Hence, option 1.

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**15. IIFT 2017 DI | DI - Tables & Graphs**

Which component(s) in WPI has registered a decline more than once between two consecutive years?

- A.
PA

- B.
AC

- C.
F&P

- D.
None of the above

Answer: Option C

**Explanation** :

By observation, F&P has declined twice in the period 2013-14 to 2015-16.

Hence, option 3.

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**Answer the following question based on the information given below.**

Refer to the Table below. It provides quarterly output data of a company for four years (1998-2001) and its trend calculated through 4-quarter Moving Average Method.

**16. IIFT 2017 DI | DI - Tables & Graphs**

In which year and which quarter does the output have the second highest positive deviation from its trend?

- A.
1999, Quarter 2

- B.
1999, Quarter 1

- C.
2001, Quarter 4

- D.
None of the above

Answer: Option B

**Explanation** :

The deviation of the Output from its Trend is essentially the difference between equivalent cells of the two tables. For instance, actual output in Quarter 3 (1998) is 56 while the Trend is 60.38.

Hence, Deviation = 56 − 60.38 = −4.38 (i.e. deviation deviation).

Similarly, the deviation for each quarter is as shown.

The second highest positive deviation is Quarter 2 in 1999.

Hence, option 2.

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**17. IIFT 2017 DI | DI - Tables & Graphs**

In which quarter, on an average there is maximum negative deviation of the output from the average value of trend of that quarter?

- A.
Quarter 3

- B.
Quarter 1

- C.
Quarter 4

- D.
Quarter 2

Answer: Option A

**Explanation** :

The deviation of the Output from its Trend is essentially the difference between equivalent cells of the two tables. For instance, actual output in Quarter 3 (1998) is 56 while the Trend is 60.38.

Hence, Deviation = 56 − 60.38 = −4.38 (i.e. deviation deviation).

Similarly, the deviation for each quarter is as shown.

The maximum negative deviation of output from the the average value will be highest where the negative sum is the highest. By observation, this is true for Quarter 3.

Hence, option 1.

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**18. IIFT 2017 DI | DI - Tables & Graphs**

In which year is the quarterly compound average growth rate (CAGR) the second lowest?

- A.
2001

- B.
1999

- C.
2000

- D.
1998

Answer: Option D

**Explanation** :

Observe that the Output for Quarter 4 is less than the Output for Quarter 1 for all four years. Hence, the CAGR will be negative for each year.

Hence, the second lowest CAGR will effectively be the second highest magnitude of CAGR.

By observation itself, 2000 will have the highest magnitude of CAGR and 1998 will have the second highest magnitude.

Hence, the quarterly CAGR will be second lowest in 1998.

Hence, option 4.

**Note:**

****You can calculate the actual CAGR as: 1998:- −2.09%; 1999:- −0.49%; 2000:- −9.43%; 2001:- −1.12%

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**19. IIFT 2017 DI | DI - Tables & Graphs**

In which year has the annual output growth been the lowest and what is the value ?

- A.
2001, 8.75%

- B.
1999, −6.23%

- C.
2000, −9.20%

- D.
2000, −5.49%

Answer: Option C

**Explanation** :

The annual output for each year is:

1998:- 240; 1999:- 261; 2000:- 237; 2001:- 223

Because the output has decreased in 2000 as well as 2001 (vis-a-vis the previous year), find the negative output growth.

2000: [(237 − 261)/261] × 100 = −9.2%

2001: [(223 − 237)/237] × 100 = −5.9%

Hence, option 3.

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**20. IIFT 2017 DI | DI - Tables & Graphs**

Plot the quarterly output and its trend values. Identify the number of times the trend curve intersects the output curve

- A.
5 times

- B.
6 times

- C.
3 times

- D.
Cannot be determined, more information required

Answer: Option B

**Explanation** :

There are 12 values of Output and Trend. When you consider the first value of both i.e. 56 and 60.38, you observe that the Trend is greater than the Output. Since the Trend is greater, they will not intersect till the time the Trend remains above the Output. As soon as the Trend drops below the Output, they will intersect. They will intersect next when the Trend again becomes greater than the Output.

This is mathematically equivalent to calculating Trend − Output and finding the number of times the sign changes for this difference as shown below.

Thus, the curves intersect each other 6 times (shown in red).

Hence, option 2.

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