21. A pilot exciter is provided on synchronous generator to
(a) provide starting torque to the generator.
(b) to supplement the power generated by the main generator.
(c) excite the main exciter.
(d) none of the above.
Answer: (c) excite the main exciter.
22.Annual operating cost of a generating plant consists of
(a) fixed charges.
(b) semi-fixed charges.
(c) operating or running charges.
(d) all of the above.
Answer: (d) all of the above.
23. For a power plant the expenditure on which of the following items is expected to be almost negligible ?
(a) Publicity.
(b) Taxes.
(c) Insurance.
(d) Maintenance.
Answer: (a) Publicity.
24. In a power plant which of the following items does not fall in the category of operating cost ?
(a) Salaries of operational and maintenance staff.
(b) Maintenance and repair cost.
(c) Salaries of supervisory staff engaged on the running of the plant.
(d) Salaries of management and clerical staff.
Answer: (d) Salaries of management and clerical staff.
25. In a power plant, which of the following items fall in the category of semi-fixed charges ?
(a) Annual interest and depreciation on capital cost.
(b) All types of taxes and insurance charges.
(c) Salaries of management and clerical staff.
(d) All of the above.
Answer: (d) All of the above.
26. For a nuclear power plant, the useful life is expected to be about
(a) 10 years.
(b) 30 years.
(c) 60 years.
(d) 80 years.
Answer: (b) 30 years.
27. The interest on the capital cost is included in
(a) annual fixed cost.
(b) annual operating cost.
(c) both (a) and (b).
(d) neither (a) nor (b).
Answer: (a) annual fixed cost.
28. The capital cost of a power plant depends on
(a) total installed capacity only.
(b) total number of units only.
(c) total installed capacity and number of units as well.
(d) neither the installed capacity nor number of units.
Answer: (c) total installed capacity and number of units as well.
29. The long term load forecast is required for
(a) operation of plant.
(b) economic operation of plant.
(c) planning the addition in generation capacity.
(d) both (b) and (c).
Answer: (c) planning the addition in generation capacity.
30. The annual depreciation reserve depends on
(a) capital cost only.
(b) salvage value only.
(c) on the method of calculation depreciation reserve.
(d) all of the above.
Answer: (d) all of the above.
31. Salvage value of a plant
(a) is always positive.
(b) is always zero.
(c) is always negative.
(d) may be any of the above.
Answer: (d) may be any of the above.
32. An equipment purchased for Rs 25 lakhs, 3 years before, has now market value of 32 lakhs, It shows that
(a) the value has depreciated as per straight line method.
(b) the value has depreciated as per diminishing value method.
(c) the value has depreciated as per sinking fund method.
(d) the value has appreciated with the time.
Answer: (d) the value has appreciated with the time.
33. Ideally depreciated value of the plant plus the accumulation in the depreciation fund should be equal to
(a) obsolescence rate.
(b) sinking fund.
(c) original invested value.
(d) salvage value.
Answer: (c) original invested value.
34. In a straight line method, annual depreciation charges are calculated by
(a) the capital cost minus salvage value divided by the number of years of life.
(b) the capital cost divided by the number of years of life.
(c) making a provision for setting each year a fixed rate, first applied to the original cost and then to the diminishing value, depending upon the useful life of the plant.
(d) none of the above.
Answer: (a) the capital cost minus salvage value divided by the number of years of life.
35. Annual installment towards depreciation increases with the decrease in interest rate in case of
(a) straight line depreciation.
(b) sink fund depreciation.
(c) reducing balance depreciation.
(d) all of the above.
Answer: (b) sink fund depreciation.
36. Annual depreciation of the plant is proportional to the earning capacity of the plant in case of
(a) straight line depreciation.
(b) sinking fund depreciation.
(c) reducing balance depreciation.
(d) none of the above.
Answer: (c) reducing balance depreciation.
37. Annual estimated depreciation charges for a plant are heavy during early years in case of
(a) diminishing value method.
(b) sinking fund method.
(c) straight line method.
(d) none of the above.
Answer: (a) diminishing value method.
38. In a power plant insurance cover is provided for
(a) equipment only.
(b) unskilled workers only.
(c) unskilled and skilled workers.
(d) equipment and skilled and unskilled workers.
Answer: (d) equipment and skilled and unskilled workers.
39. A company can raise funds through
(a) fixed deposits.
(b) shares.
(c) bonds.
(d) any of the above.
Answer: (d) any of the above.
40. All of the following are the sources of borrowing money except
(a) shares.
(b) debentures.
(c) bonds.
(d) fixes deposits.
Answer: (a) shares.