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Signals using exactly 4 flags out of those 5 different flags number:

A60
B20
C240
D120
Answer & Solution
Correct answer: D. 120
1. The places offer 5, 4, 3 and 2 choices. 2. Multiply them together. 3. The count is 120. _Source: NCERT Class 11 Mathematics, Chapter 7, Permutations and Combinations._
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