100+ Free IBBI Plant & Machinery Practice Questions

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Key Facts: IBBI Plant & Machinery Exam

MCQs in the exam

IBBI Valuation Examination FAQs

120 minutes

Test duration

IBBI Valuation Examination FAQs

60%

Minimum marks to pass

IBBI Valuation Examination FAQs

25%

Negative marking per wrong answer

IBBI Valuation Examination FAQs

IBBI Plant & Machinery valuation exam is a 2-hour, 100-mark online MCQ test with 90 questions including case studies. A candidate must score 60% to pass and 25% negative marking applies.

Sample IBBI Plant & Machinery Practice Questions

Try these sample questions to test your IBBI Plant & Machinery exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1If the price of cotton imported by a Mumbai textile mill rises, what happens to the supply of cotton fabric, ceteris paribus?

A.Supply remains unchanged

B.Demand decreases automatically

C.Supply increases because demand rises

D.Supply decreases because production costs increase

Explanation: Higher input costs raise the cost of production, reducing the quantity supplied at each price and shifting the supply curve to the left.

2Which of the following best describes price elasticity of demand?

A.Responsiveness of quantity demanded to a change in price

B.Percentage change in total revenue

C.Difference between cost and value

D.Change in supply when price changes

Explanation: Price elasticity of demand measures how much the quantity demanded responds to a change in the good's price.

3In the Indian steel market, when GDP growth is strong and infrastructure spending rises, the demand for steel tends to:

A.Increase because demand is derived from construction and industrial activity

B.Decrease because prices are high

C.Remain constant because steel is a necessity

D.Shift only because of a change in population

Explanation: Steel demand is derived demand; it rises when the economic activities that use steel, such as construction and manufacturing, expand.

4If a Pune factory can produce either 100 CNC machines or 200 robotic arms with the same resources, what is the opportunity cost of one CNC machine?

A.200 CNC machines

B.100 robotic arms

C.2 robotic arms

D.0.5 robotic arms

Explanation: The opportunity cost of one CNC machine is the number of robotic arms foregone, which is 200/100 = 2 robotic arms.

5When the Reserve Bank of India raises the repo rate to control inflation, the intended short-run effect on investment demand is usually:

A.No change because inflation is unrelated to investment

B.A permanent increase in plant and machinery purchases

C.An increase because savings are discouraged

D.A decrease because borrowing becomes more expensive

Explanation: A higher repo rate raises interest rates, increasing the cost of borrowing and reducing investment demand.

6Which factor would normally shift the demand curve for solar-panel manufacturing machinery to the right in India?

A.An increase in the wages of machinery technicians

B.A fall in the price of solar-panel machinery

C.A government subsidy for renewable-energy equipment manufacturing

D.A reduction in the number of manufacturers

Explanation: A subsidy that stimulates the manufacturing of solar panels increases demand for the machinery used to make them, shifting the demand curve right.

7If demand for a product is price inelastic, a 10% increase in price will lead to:

A.A exactly 10% rise in quantity demanded

B.A more than 10% fall in quantity demanded and lower total revenue

C.A less than 10% fall in quantity demanded and higher total revenue

D.No change in quantity demanded

Explanation: Inelastic demand means the percentage change in quantity demanded is less than the percentage change in price, so total revenue increases when price rises.

8In a perfectly competitive market, the equilibrium price in the long run is determined at the point where:

A.Price equals minimum long-run average cost

B.Supply is fixed regardless of demand

C.Price equals maximum marginal revenue

D.Marginal cost is zero

Explanation: In long-run perfect competition, free entry and exit drive economic profit to zero, so price equals the minimum of the long-run average cost curve.

9Which measure of national income includes only the value of final goods and services produced within a country in a given period?

A.Gross National Product (GNP)

B.Gross Domestic Product (GDP)

C.Net National Product (NNP)

D.Personal Income

Explanation: GDP is the market value of all final goods and services produced within a country's borders in a specific time period.

10If the Indian rupee depreciates against the US dollar, the price of imported German machinery in India is likely to:

A.Decrease because demand falls

B.Decrease in rupee terms

C.Increase in rupee terms

D.Remain unchanged because the price is fixed in euros

Explanation: A weaker rupee means more rupees are needed to buy the same amount of foreign currency, raising the rupee cost of imported machinery.

About the IBBI Plant & Machinery Exam

The IBBI Registered Valuers Examination for the Plant & Machinery asset class is a 2-hour online proctored MCQ test. It covers valuation concepts, plant & machinery valuation methods, depreciation and obsolescence, and legal frameworks.

Assessment

90 MCQs (80 of 1 mark + 10 of 2 marks) in 120 minutes, covering Principles of Economics, Financial System & Corporate Finance, Valuation Concepts & Principles, Valuation of Plant & Machinery, Legal & Regulatory Framework, and Case Studies.

Time Limit

120 minutes (2 hours)

Passing Score

60% of total marks

Exam Fee

INR 1,500 per enrolment (Insolvency and Bankruptcy Board of India (IBBI))

IBBI Plant & Machinery Exam Content Outline

10%

Principles of Economics

Economic concepts relevant to valuation

15%

Financial System & Corporate Finance

Indian financial system and corporate finance

15%

Valuation Concepts & Principles

Fundamental valuation concepts

25%

Valuation of Plant & Machinery

Cost, market and income approaches for P&M

20%

Legal & Regulatory Framework

Relevant Indian laws and valuation standards

15%

Case Studies

Case-based application of P&M valuation

How to Pass the IBBI Plant & Machinery Exam

What You Need to Know

Passing score: 60% of total marks
Assessment: 90 MCQs (80 of 1 mark + 10 of 2 marks) in 120 minutes, covering Principles of Economics, Financial System & Corporate Finance, Valuation Concepts & Principles, Valuation of Plant & Machinery, Legal & Regulatory Framework, and Case Studies.
Time limit: 120 minutes (2 hours)
Exam fee: INR 1,500 per enrolment

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

IBBI Plant & Machinery Study Tips from Top Performers

1Understand cost approach, replacement cost and depreciation methods for plant and machinery

2Review the Sale of Goods Act, Factory Act and relevant labour laws

3Practise DCF and capitalisation methods for income-producing assets

Frequently Asked Questions

How many questions are in the Plant & Machinery valuation exam?

There are 90 MCQs: 80 carry 1 mark each and 10 carry 2 marks each (including case studies).

What is the negative marking?

A wrong answer attracts a negative mark of 25% of the marks assigned to that question.

What is the passing criterion?

A candidate must secure at least 60% of the total marks to pass.