Business, Trade, Finance and Market Data Previous Year Questions (PYQs) for CAT: 22+ Solved Questions with Step-by-Step Solutions

    Solve 22+ Business, Trade, Finance and Market Data previous year questions for CAT with answers and detailed solutions. Free sample questions below.

    Chapter Roadmap: Business, Trade, Finance and Market Data

    Chapter Roadmap: Business, Trade, Finance and Market Data

    International Trade, Tariffs and Currency Data Highest Weightage (18+ PYQs)

    Exchange rates, trade balances, normalized metrics, tariff calculations.

    Dealer Sales and Market Performance Moderate Weightage (5 PYQs)

    Variant-wise sales, dealer allocations, inventory constraints.

    Raw Materials, Production and Profit Data Moderate Weightage (4 PYQs)

    Input-output ratios, cost-price-sell price chains, wastage.

    End Goal: Translate dense tabular or textual business constraints into clean algebraic or grid-based models.

    Topic Hero: The Nature of Trade and Currency Puzzles

    Topic Hero: The Nature of Trade and Currency Puzzles

    Questions in this topic are not economics tests; they are constraint-satisfaction puzzles.

    You will be given:

    • A set of entities (countries, travelers, dealers).
    • A set of metrics (GDP, currency values, trade volumes).
    • Strict logical rules (e.g., "each country is visited by exactly two travelers").
    Your Job: Build a structured table or grid, translate the rules into equations, and solve step-by-step without making directional arithmetic errors.

    Business, Trade, Finance and Market Data: Solved Questions with Step-by-Step Explanations (5 Problems)

    Question 1 · Data Interpretation and Logical Reasoning NAT
    Common Description: Aurevia, Brelosia, Cyrenia and Zerathania are four countries with their currencies being Aurels, Brins, Crowns, and Zentars, respectively. The currencies have different exchange values. Crown's currency exchange rate with Zentars = 0.5, i.e., 1 Crown is worth 0.5 Zentars.
    Three travelers, Jano, Kira, and Lian set out from Zerathania visiting exactly two of the countries. Each country is visited by exactly two travelers. Each traveler has a unique Flight Cost, which represents the total cost of airfare in traveling to both the countries and back to Zerathania. The Flight Cost of Jano was 4000 Zentars, while that of the other two travelers were 5000 and 6000 Zentars, not necessarily in that order. When visiting a country, a traveler spent either 1000, 2000 or 3000 in the country's local currency. Each traveler had different spends (in the country's local currency) in the two countries he/she visited. Across all the visits, there were exactly two spends of 1000 and exactly one spend of 3000 (in the country's local currency).
    The total “Travel Cost” for a traveler is the sum of his/her Flight Cost and the money spent in the countries visited.
    The citizens of the four countries with knowledge of these travels made a few observations, with spends measured in their respective local currencies:
    i. Aurevia citizen: Jano and Kira visited our country, and their Travel Costs were 3500 and 8000, respectively.
    ii. Brelosia citizen: Kira and Lian visited our country, spending 2000 and 3000, respectively. Kira's Travel Cost was 4000.
    iii. Cyrenia citizen: Lian visited our country and her Travel Cost was 36000. What is the sum of Travel Costs for all travelers in Zentars?
    Correct Answer:

    41000

    Step-by-Step Solution

    Key idea: This is a currency conversion and logical deduction puzzle, recognisable because travelers visit countries with different currencies, and costs are given in mixed units (local currency vs Zentars).

    Step 1: Map Travelers to Countries.

    • Aurevia: Jano, Kira.
    • Brelosia: Kira, Lian.
    • Cyrenia: Lian, Jano (since each country visited by exactly 2).

    Step 2: Determine Local Spends.

    Global Spend Counts: Two 1000s, Three 2000s, One 3000.

    From Brelosia: Kira spent 2000 Brins, Lian spent 3000 Brins.

    From Aurevia: Kira's spends must be different. She spent 2000 in Brelosia, so she must spend 1000 Aurels in Aurevia.

    Remaining spends: One 1000, Two 2000s.

    Lian's other spend (Cyrenia) must be different from 3000. Jano's spends must be different.

    If Lian spent 1000 in Cyrenia, Jano would have to spend 2000 and 2000, violating the distinctness rule.

    So Lian spent 2000 Crowns in Cyrenia.

    Jano spent 1000 and 2000 in Aurelia/Cyrenia.

    Step 3: Calculate Exchange Rates and Flight Costs.

    Let A, B, C be values of 1 Aurel, Brin, Crown in Zentars. C = 0.5.

    Kira's TC: 4000 Brins = 8000 Aurels => B = 2A.

    Kira's FC in Brins + 2000 + 1000(A/B) = 4000 => FC_K(B) + 2500 = 4000 => FC_K(B) = 1500.

    Lian's TC: 36000 Crowns. FC_L(C) + 3000(B/C) + 2000 = 36000.

    Testing the discrete FC values (4000, 5000, 6000 Zentars):

    If FC_K = 6000 Zentars, then 1500 * B = 6000 => B = 4. Since B = 2A, A = 2.

    Then B/C = 4 / 0.5 = 8.

    Lian's eq: FC_L(C) + 3000(8) + 2000 = 36000 => FC_L(C) + 26000 = 36000 => FC_L(C) = 10000.

    FC_L in Zentars = 10000 * 0.5 = 5000. Valid!

    So FC_K = 6000, FC_L = 5000, FC_J = 4000. Sum of FC = 15000.

    Step 4: Sum all Travel Costs in Zentars.

    Total TC = Sum(FC) + Sum(Spends in Zentars).

    Kira Spends: 1000(2) + 2000(4) = 10000.

    Lian Spends: 3000(4) + 2000(0.5) = 13000.

    Jano Spends: 1000(2) + 2000(0.5) = 3000.

    Total Spends = 26000.

    Total TC = 15000 + 26000 = 41000.

    Answer: 41000

    Question 2 · Data Interpretation and Logical Reasoning MCQ
    Common Description: Three countries — Pumpland (P), Xiland (X) and Cheeseland (C) — trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency). The following terminology is used:
    • Trade balance = Exports - Imports
    • Total trade = Exports + Imports
    • Normalized trade balance = Trade balance / Total trade, expressed in percentage terms
    The following information is known.
    1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.
    2. 40% of exports of X are to P. 22% of imports of P are from X.
    3. 90% of exports of C are to P; 4% are to ROW.
    4. 12% of exports of ROW are to X, 40% are to P.
    5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C. Which among the countries P, X, and C has/have the least total trade?
    1. A.

      Only X

    2. B.

      Only C

    3. C.

      Both X and C

    4. D.

      Only P

    Correct Answer:

    C

    Step-by-Step Solution

    Key idea: This is a system of linear equations problem involving trade balances, recognizable because it requires linking multiple countries' exports and imports through given percentages to find total trade volumes.

    Step 1: Understand Normalized Trade Balance ratios.

    Formula: .

    • For P: . Let this be . Total Trade .
    • For X: .
    • For C: .

    Step 2: Analyze Cheeseland (C).

    Imports of C (): P is the only exporter to C. P's export to C is 1200. So, .

    Exports of C (): .

    Total Trade C () = .

    Step 3: Set up equations for Pumpland (P).

    . Imports come from X, C, and ROW.

    • From X: 22% of .
    • From C: 90% of .
    • From ROW: 40% of ROW's total exports () .

    Equation 1: .

    Step 4: Set up equations for Xiland (X).

    Exports of X (): 40% go to P. This equals P's import from X ().

    .

    Since , .

    Total Trade X () = .

    Step 5: Solve for K using X's imports.

    . Imports come from P, C, and ROW.

    • From P: Given as 600.
    • From C: 6% of (since 90% to P, 4% to ROW) .
    • From ROW: 12% of .

    Equation 2: .

    Step 6: Solve the system.

    Multiply Eq 2 by :

    (Eq 3).

    Subtract Eq 1 from Eq 3:

    .

    Step 7: Compare Total Trades.

    .

    .

    .

    The least total trade is 2000, shared by X and C.

    Answer: C.

    Question 3 · Data Interpretation and Logical Reasoning MCQ
    Common Description: Three countries — Pumpland (P), Xiland (X) and Cheeseland (C) — trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency). The following terminology is used:
    • Trade balance = Exports - Imports
    • Total trade = Exports + Imports
    • Normalized trade balance = Trade balance / Total trade, expressed in percentage terms
    The following information is known.
    1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.
    2. 40% of exports of X are to P. 22% of imports of P are from X.
    3. 90% of exports of C are to P; 4% are to ROW.
    4. 12% of exports of ROW are to X, 40% are to P.
    5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C. What is the trade balance of ROW?
    1. A.

      0

    2. B.

      -200

    3. C.

      100

    4. D.

      200

    Correct Answer:

    D

    Step-by-Step Solution

    Key idea: This is a residual-entity trade-balance question, recognisable because the balance of ROW is asked after internal trade flows among P, X, and C have to be derived.

    The trigger is that ROW's balance can be found either by explicit flow accounting or by using the fact that the sum of balances across a closed trade system is zero.

    Step 1: Recall the derived values for P, X, and C.

    From the common dataset:

    .

    and .

    and .

    Step 2: Compute Trade Balances for P, X, and C.

    Balance P = .

    Balance X = .

    Balance C = .

    Step 3: Use the Zero-Sum Property.

    In a closed system (P, X, C, ROW), the sum of all trade balances must be zero.

    .

    .

    .

    .

    Alternative Method: Explicit Flow Accounting.

    ROW Exports () = 2100 (Derived from P's imports from ROW = 840, which is 40% of ).

    ROW Imports () = Sum of exports from P, X, C to ROW.

    P to ROW = .

    X to ROW = .

    C to ROW = .

    .

    Wait, earlier calculation showed .

    ROW Exports to P = 840.

    ROW Exports to X = .

    ROW Exports to C = 0.

    Total ?

    Let's re-verify .

    . From X: 440. From C: 720. From ROW: .

    .

    ROW Exports to X = .

    Total ROW Exports accounted for = .

    Where is the rest of ROW's exports going? The problem says "Three countries... trade among themselves and with ROW". It doesn't say ROW ONLY trades with them. But usually, in these problems, the system is closed.

    If the system is closed, must equal Sum of Imports by P,X,C from ROW.

    .

    If , then ROW has a massive surplus of exports not accounted for?

    Ah, the "Rest of World" implies there are other countries. But the balance of ROW with respect to P, X, C? No, "Trade Balance of ROW" usually means global.

    However, if we assume the "Closed System" of P, X, C, ROW, then must equal ? No.

    Let's stick to the Balance Sum method which is robust.

    Sum of Balances = 0.

    .

    .

    .

    .

    Answer: D.

    Question 4 · Data Interpretation and Logical Reasoning NAT
    Common Description: Three countries — Pumpland (P), Xiland (X) and Cheeseland (C) — trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency). The following terminology is used:
    • Trade balance = Exports - Imports
    • Total trade = Exports + Imports
    • Normalized trade balance = Trade balance / Total trade, expressed in percentage terms
    The following information is known.
    1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.
    2. 40% of exports of X are to P. 22% of imports of P are from X.
    3. 90% of exports of C are to P; 4% are to ROW.
    4. 12% of exports of ROW are to X, 40% are to P.
    5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C. How much is exported from C to X, in IC?
    Correct Answer:

    48

    Step-by-Step Solution

    Key idea: This is a normalized trade balance problem, recognizable because it gives percentage-based trade balances and asks for a specific bilateral trade flow. We can solve it independently using the target country's normalized balance and its import/export constraints.

    Step 1: Determine the Import-Export Ratio for Country C.

    Normalized Trade Balance () is defined as .

    For C, .

    .

    Step 2: Determine C's Total Imports ().

    The problem states: "P is the only country that exports to C."

    We are given: "The export volumes of P ... to C are ... 1200".

    Therefore, all of C's imports come from P.

    .

    Step 3: Calculate C's Total Exports ().

    Using the ratio from Step 1:

    .

    Step 4: Determine Export Distribution of C.

    We are given:

    • 90% of C's exports are to P.
    • 4% of C's exports are to ROW.
    • The remainder must be to X (since C trades with P, X, and ROW).

    Percentage to X = .

    Step 5: Calculate Export from C to X.

    .

    Answer: 48.

    Question 5 · Data Interpretation and Logical Reasoning MCQ
    Common Description: Aurevia, Brelosia, Cyrenia and Zerathania are four countries with their currencies being Aurels, Brins, Crowns, and Zentars, respectively. The currencies have different exchange values. Crown's currency exchange rate with Zentars = 0.5, i.e., 1 Crown is worth 0.5 Zentars.
    Three travelers, Jano, Kira, and Lian set out from Zerathania visiting exactly two of the countries. Each country is visited by exactly two travelers. Each traveler has a unique Flight Cost, which represents the total cost of airfare in traveling to both the countries and back to Zerathania. The Flight Cost of Jano was 4000 Zentars, while that of the other two travelers were 5000 and 6000 Zentars, not necessarily in that order. When visiting a country, a traveler spent either 1000, 2000 or 3000 in the country's local currency. Each traveler had different spends (in the country's local currency) in the two countries he/she visited. Across all the visits, there were exactly two spends of 1000 and exactly one spend of 3000 (in the country's local currency).
    The total “Travel Cost” for a traveler is the sum of his/her Flight Cost and the money spent in the countries visited.
    The citizens of the four countries with knowledge of these travels made a few observations, with spends measured in their respective local currencies:
    i. Aurevia citizen: Jano and Kira visited our country, and their Travel Costs were 3500 and 8000, respectively.
    ii. Brelosia citizen: Kira and Lian visited our country, spending 2000 and 3000, respectively. Kira's Travel Cost was 4000.
    iii. Cyrenia citizen: Lian visited our country and her Travel Cost was 36000. One Brin is equivalent to how many Crowns?
    1. A.

      8

    2. B.

      0.125

    3. C.

      0.5

    4. D.

      4

    Correct Answer:

    A

    Step-by-Step Solution

    Key idea: This is a currency-conversion plus constraint-deduction question, recognisable because multiple local currencies, a small set of spend values, and travel-cost observations are mixed together.

    The trigger is that travel costs are reported in local currencies while flight costs are given in Zentars, so we must first deduce the local spends and then solve for exchange rates.

    Step 1: Assign the visits.

    Aurevia says Jano and Kira visited Aurevia.

    Brelosia says Kira and Lian visited Brelosia.

    Cyrenia says Lian visited Cyrenia.

    Each country is visited by exactly two travelers, so Cyrenia's second visitor must be Jano.

    Therefore:

    Jano visits Aurevia and Cyrenia.

    Kira visits Aurevia and Brelosia.

    Lian visits Brelosia and Cyrenia.

    Step 2: Deduce the spend values.

    Brelosia says Kira spent 2000 Brins and Lian spent 3000 Brins.

    Across all six visits, the spend multiset is: two 1000s, three 2000s, one 3000.

    The only 3000 is already used by Lian in Brelosia.

    Kira already spent 2000 in Brelosia. Since each traveler has different spends in the two countries visited, Kira cannot spend 2000 in Aurevia.

    The only 3000 is already used, so Kira must spend 1000 Aurels in Aurevia.

    Remaining spends are one 1000 and two 2000s.

    If Lian spent 1000 in Cyrenia, Jano would need to spend 2000 in both countries, which is not allowed.

    Therefore Lian spent 2000 Crowns in Cyrenia. Jano spends 1000 and 2000 in Aurevia and Cyrenia.

    Step 3: Define exchange rates.

    Let 1 Aurel = Zentars.

    Let 1 Brin = Zentars.

    Given 1 Crown = Zentars.

    Step 4: Use Lian's Travel Cost in Crowns.

    Lian's Flight Cost = Zentars.

    In Crowns, Flight Cost = .

    Lian's Travel Cost in Crowns = .

    If , . If , .

    Step 5: Use Kira's Travel Cost in Brins.

    Kira's Flight Cost = Zentars.

    In Brins, Flight Cost = .

    Kira's Travel Cost in Brins = .

    If , becomes fractional and fails Jano's equation.

    If , , so .

    .

    Step 6: Verify with Jano's Travel Cost in Aurels.

    Jano's Flight = 4000 Zentars = 2000 Aurels.

    Jano's Travel Cost in Aurels = .

    .

    Since , works perfectly.

    Step 7: Answer the question.

    1 Brin = 4 Zentars. 1 Crown = 0.5 Zentars 1 Zentar = 2 Crowns.

    1 Brin = 4 * 2 = 8 Crowns.

    Answer: 8.

    More previous year questions (pyqs) in this unit

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    Business, Trade, Finance and Market Data Previous Year Questions (PYQs) for CAT: 22+ Solved Questions with Step-by-Step Solutions

    Solve 22+ Business, Trade, Finance and Market Data previous year questions for CAT with answers and detailed solutions. Free sample questions below.

    A question from this chapter

    Question 1
    Common Description: Aurevia, Brelosia, Cyrenia and Zerathania are four countries with their currencies being Aurels, Brins, Crowns, and Zentars, respectively. The currencies have different exchange values. Crown's currency exchange rate with Zentars = 0.5, i.e., 1 Crown is worth 0.5 Zentars.
    Three travelers, Jano, Kira, and Lian set out from Zerathania visiting exactly two of the countries. Each country is visited by exactly two travelers. Each traveler has a unique Flight Cost, which represents the total cost of airfare in traveling to both the countries and back to Zerathania. The Flight Cost of Jano was 4000 Zentars, while that of the other two travelers were 5000 and 6000 Zentars, not necessarily in that order. When visiting a country, a traveler spent either 1000, 2000 or 3000 in the country's local currency. Each traveler had different spends (in the country's local currency) in the two countries he/she visited. Across all the visits, there were exactly two spends of 1000 and exactly one spend of 3000 (in the country's local currency).
    The total “Travel Cost” for a traveler is the sum of his/her Flight Cost and the money spent in the countries visited.
    The citizens of the four countries with knowledge of these travels made a few observations, with spends measured in their respective local currencies:
    i. Aurevia citizen: Jano and Kira visited our country, and their Travel Costs were 3500 and 8000, respectively.
    ii. Brelosia citizen: Kira and Lian visited our country, spending 2000 and 3000, respectively. Kira's Travel Cost was 4000.
    iii. Cyrenia citizen: Lian visited our country and her Travel Cost was 36000. What is the sum of Travel Costs for all travelers in Zentars?
    Question 2
    Common Description: Three countries — Pumpland (P), Xiland (X) and Cheeseland (C) — trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency). The following terminology is used:
    • Trade balance = Exports - Imports
    • Total trade = Exports + Imports
    • Normalized trade balance = Trade balance / Total trade, expressed in percentage terms
    The following information is known.
    1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.
    2. 40% of exports of X are to P. 22% of imports of P are from X.
    3. 90% of exports of C are to P; 4% are to ROW.
    4. 12% of exports of ROW are to X, 40% are to P.
    5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C. Which among the countries P, X, and C has/have the least total trade?
    Question 3
    Common Description: Three countries — Pumpland (P), Xiland (X) and Cheeseland (C) — trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency). The following terminology is used:
    • Trade balance = Exports - Imports
    • Total trade = Exports + Imports
    • Normalized trade balance = Trade balance / Total trade, expressed in percentage terms
    The following information is known.
    1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.
    2. 40% of exports of X are to P. 22% of imports of P are from X.
    3. 90% of exports of C are to P; 4% are to ROW.
    4. 12% of exports of ROW are to X, 40% are to P.
    5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C. What is the trade balance of ROW?
    Question 4
    Common Description: Three countries — Pumpland (P), Xiland (X) and Cheeseland (C) — trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency). The following terminology is used:
    • Trade balance = Exports - Imports
    • Total trade = Exports + Imports
    • Normalized trade balance = Trade balance / Total trade, expressed in percentage terms
    The following information is known.
    1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.
    2. 40% of exports of X are to P. 22% of imports of P are from X.
    3. 90% of exports of C are to P; 4% are to ROW.
    4. 12% of exports of ROW are to X, 40% are to P.
    5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C. How much is exported from C to X, in IC?
    Question 5
    Common Description: Aurevia, Brelosia, Cyrenia and Zerathania are four countries with their currencies being Aurels, Brins, Crowns, and Zentars, respectively. The currencies have different exchange values. Crown's currency exchange rate with Zentars = 0.5, i.e., 1 Crown is worth 0.5 Zentars.
    Three travelers, Jano, Kira, and Lian set out from Zerathania visiting exactly two of the countries. Each country is visited by exactly two travelers. Each traveler has a unique Flight Cost, which represents the total cost of airfare in traveling to both the countries and back to Zerathania. The Flight Cost of Jano was 4000 Zentars, while that of the other two travelers were 5000 and 6000 Zentars, not necessarily in that order. When visiting a country, a traveler spent either 1000, 2000 or 3000 in the country's local currency. Each traveler had different spends (in the country's local currency) in the two countries he/she visited. Across all the visits, there were exactly two spends of 1000 and exactly one spend of 3000 (in the country's local currency).
    The total “Travel Cost” for a traveler is the sum of his/her Flight Cost and the money spent in the countries visited.
    The citizens of the four countries with knowledge of these travels made a few observations, with spends measured in their respective local currencies:
    i. Aurevia citizen: Jano and Kira visited our country, and their Travel Costs were 3500 and 8000, respectively.
    ii. Brelosia citizen: Kira and Lian visited our country, spending 2000 and 3000, respectively. Kira's Travel Cost was 4000.
    iii. Cyrenia citizen: Lian visited our country and her Travel Cost was 36000. One Brin is equivalent to how many Crowns?
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