Question

If the government has a fixed capital of $\$$ 200 million in the Iron and Steel industry, which corresponds to 20.012% of its total investment as fixed capital, then how much did the government invest (in Rs. million) in Maruti Udyog Ltd which forms 25% of the investment in the joint sector?(1 US $ = Rs. 45)

• A. 6500
• B. 2500
• C. 143
• D. 145

Answer 1

The correct option is A 6500

If 20% of the government fixed capital is equal to $\$$ 200 million $\Rightarrow$ Total government sector fixed capital $=\$$ 1000 million which is equivalent to 14% of the total fixed capital. Now, 25% of government investment in joint sector i.e., 25% of the 8% of the total = 2% total fixed capital will be given by $(1000\times 2)/14=\$143$ million (approx.)
Value in Rs is given by:
$143\times 45=Rs6450$ million