MULTIPLE CHOICE QUESTIONS ON BANKING, FINANCE AND ECONOMY

Test Paper- 6

1.

Corporate Governance norms, popularly known as Clause 49 norms, are

imposed by

(a)

RBI

2.

Who is the Deputy Chairman of the Planning Commission?

(a)
(c)

Dr. Y.V.Reddy
Montek Singh Ahluwalia

3.

The Eleventh Five Year Plan period is

(a)

2001-05

4.

(b)

(b)

IRDA

(c)

(b)
(d)

2002-07

(c)

SEBI

(d)

TRAI

Pranob Mukherji
Surjit Singh Barna

2007-12

(d)

2006-11

The committee, appointed by the plan panel, to look into the financial sector
reforms is headed by

(a)
(d)

Raghuram G. Rajan
Dr. Rangarajan

5.

The average growth rate of GDP during the 10th Plan is

(a)

9.4%

6.

The growth rate of GDP for the financial year 2006-07 is

(a)

8.4%

7.

The nuclear powers share of the world energy market is

(a)

10%

8.

By the market capitalisation, which is the biggest bank in the world now?

(a)
(c)

Citigroup(US)
HSBC

9.

What is the CRR at present (w.e.f. 4.8.2007)

(a)

6.5%

10.

(a)

(b)

(b)

(b)

(b)

(b)

8%

(c)

9.1%

(c)

12%

(b)
(d)

Montek Singh Ahluwalia

(d)
Rakesh Mohan

(c)

7.6%

(d)

9.4%

(d)

14%

(d)

6.7%

9.3%

16%

Industrial & Commercial Bank of China

SBI

6%

(c)

7%

(d)

7.5%

The LAF provided by RBI is available to the Banks (Liquidity Adjustment

Facility)
daily (b)

weekly

(c)

fort-nightly

(d)

monthly

11.

What rates are applied in LAF

(a)
(c)

Bank Rate
Repo Rate

12.

What is the Bank Rate at present(12.9.07)?

(a)

6%

13.

At present (12.9.07) the Repo and Reverse Repo rates are

(a)

6% & 7.75% (b)

14.

(b)

(b)
(d)

7%

(c)

Call Money Market Rate

Repo & Reverse Repo Rates

6.5%

7.75% & 6% (c)

(d)

6% & 7.5%

(d)

7.5% & 6%

Percentage of credit availed by the rural people from non-institutional sources

at present is:-

(a)

50%

15.

Vishing is a fraudulent act which means

(a)
(c)

sending fake e-mails

sending wishes thro e-mails

16.

Micro Finance Institutions are being regulated by

(a)

RBI

17.

7.5%

(b)

(b)

70%

SBI

(c)

(c)

(b)
(d)

65%

(d)

75%

sending fake SMS

sending wishes thro SMS

NABARD

(d)

SEBI

We should not insist for no-dues certificate from the small and marginal
farmers, share croppers and others upto a loan limit of

(a)

Rs.25,000/- (b)

18.

How many clearings are there for NEFT at present?

(a)

19.

Chairman for the Indian Banks Association (IBA) for the year 2007-08 is

(a)

OP Bhatt

20.

(a)
21.

(a)

(b)

(b)

Rs.1 lac

(c)

(c)

(d)

Rs.10,000/- (d)

Rs.50,000/-

TS Narayanasami (c)

MBN Rao

(d)

YV Reddy

Banks have been permitted to offer preferential rate of interest on bulk

deposits of above
Rs.1 crore

(b)

Rs.50 lacs

(c)

Rs.15 lacs

(d)

Rs.25 lacs

The Grameena Bank Model of micro-finance institution was originally

developed in
India (b)

China

(c)

Sri Lanka

(d)

Bangladesh

22.

Now, the Banks are required not to finance the purchase of

(a)
23.

KVPs
(b)
NSCs
(c)
IVPs
(d)
Shares
Which of the following is an affiliate of the IBRD (World Bank)?

(a)

IMF

24.

The president of World Bank is

(a)
(d)

Robert Conable
(b)
Michael Camdessus

25.

The World Bank was started in the year

(a)

1945

26.

Bank for International Settlements (BIS) is established at

(a)

London

27.

Big Board is the nick name of

(a)

BSE

28.

At present the rate of dividend distribution tax is

(a)

12.5%

29.

(a)
30.

(b)

IDA

(b)

(b)

(b)

(b)

(c)

UNDP

Robert Zoellick

1947

(c)

Paris

NASDAQ

15%

(d)

UNICEF

(c)

Gaston Thon

1943

(d)

1949

(c)

New York

(d)

Basle

(c)

NYSE

(d)

NSE

(d)

10%

(c)

22.5%

Which of the following sectors has spent the highest on Information

Technology in the year 2006?
Banking

(b)

Automobile (c)

Insurance

(d)

Pharmaceutical

Under NREGS, the rural poor are guaranteed with atleast ______employment
in a year

(a)

50 days

(b)

75 days

31.

In 2006, the growth rate of global economy is

(a)

5.1% (b)

32.

One of these PSUs is not having the Navratna Status:-

(a)

BEL

5.2%

(b)

(c)

HAL

(c)

100 days

5.4%

(c)

(d)

PFC

(d)

200 days

5.5%

(d)

BEML

33.

The new base year of Central Statistical Organisation, which calculates the
various economic indicators of the country is:-

(a)
34.

2003-04
(b)
1999-2000 (c)
2001-02
(d)
2002-03
The target annual average growth in the 11th five year plan is projected at

(a)

9%

35.

Which is the biggest Mutual Fund Company, in terms of assets?

(a)

Reliance MF (b)

36.

Recently, the Government has clarified that, the following identification

number has to be quoted for all financial transactions:-

(a)

MIN

37.

One of the following State has the lowest per capita income :-

(a)

Rajasthan

38.

(b)

(b)

7%

(c)

SBI MF

PAN

(b)

(c)

Bihar (c)

8%

(c)

(d)

10%

Pru ICICI MF (d)

Voter ID No.

Orissa

(d)

(d)

UTI MF

Mobile No.

Arunachal Pradesh

MCA-21 is a major initiative taken by the Government of India in which one of

the following areas

(a)
(c)

to set of SEZs
(b)
to modernise National Highways (d)

39.

Per capita income for the year 2006-07 in India is

(a)

Rs.20,483

40.

Industrial growth rate for the year 2006-07 (revised estimates) is

(a)

8.9%

41.

Manufacturing sector growth rate for the year 2006-07 (revised estimates) is

(a)

7.0%

42.

(a)
43.

(a)

(b)

(b)

(b)

Rs.21,483

9.9%

(c)

(c)

12.3%

(c)

to improve e-governance
to increase FDI

Rs.22,2483 (d)

10.9%

(d)

9.4%

(d)

Rs.23,483

11.9%

14%

Service Sector, has grown at the following rate (revised estimates) for the
year 2006-07
7%

(b)

8%

(c)

11%

(d)

12%

The growth rate of the Agricultural Sector for the year 2006-07 (revised
estimates) is:1.7% (b)

2.7%

(c)

3.7%

(d)

4.7%

44.

IPTV means
(a)
Interactive Protocol Television Service
(b)
Internet Protocol Television Service
(c)
Internationally Provided Television Service
(d)
None of the above

45.

The ratio of life insurance premium to Indias GDP is around

(a)

3%

46.

(b)

4%

(c)

5%

(d)

6%

Life Insurance Corporation of Indias market share in Life Insurance business

is

(a)

50%

(b)

47.

At present, foreign holding in Insurance Companies in India is limited to

(a)

50%

48.

Most of the Life Insurance business is done through

(a)
(d)

Agents
(b)
Corporate Agents

49.

The previous name of Axis Bank is

(a)

GT Bank

50.

The Social Security Bill 2007 does not include one of the following:-

(a)
(c)

Maintenance of Pension Fund

National Old Age Pension Scheme

(b)

(b)

60%

(c)

26%

(c)

Brokers

UTI Bank

(c)

(c)

70%

(d)

74%

(d)

75%

24%

Companies themselves

American Express (d)UCO Bank

(b)
(d)

Aam Admi Bima Yojana

Health Insurance Scheme

51. The apex Drugs Regulatory Authority, in India is called

(a)

DGFT

(b)

DCGI

(c)

DCI

(d)

None of these

52.For the year 2006-07, the biggest tax resource to Central Government is
(a)

Income Tax (b)Customs Duty

(c)

Excise Duty (d)Corporation Tax

53.At present, the mandatory percentage of ethanol to be mixed with petrol, is

(a)

1%

(b)

3%

(c)

10%

(d)

5%

54. What is the proposed percentage of ethanol to be mixed with petrol by 1.4.2008?
(a)

5%

(b)

8%

(c)

10%

(d)

12%

55. Per capita gold consumption in India is

(a)

1 gm

(b)

0.7gm

(c)

2 gm (d)

10gm

China

(d)

56. The largest importer of gold at present is

(a)

Japan

(b)

USA

(c)

India

57. There is a proposal to merge one of these associate banks with SBI
(a)

SBS (b)

SBM

(c)

SBT

(d)

SBH

58. One of the following is the smallest of the seven Associate Banks of SBI
(a)

SBT

(b)

SBS

(c)

SBM

(d)

SBH

59. The percentage stake of SBI in State Bank of Saurashtra is

(a)

75%

(b)

51%

(c)

59.7%

(d)

100%

60. Percentage of total lendings of PSBs to Small Scale Industries, for the year 200506 is:(a)

7.5%

(b)

8.5%

(c)

9.5%

(d)

14%

61. Approximate percentage of priority sector lendings by All Schedule Commercial

Banks, for the year 2005-06 is:(a)

34%

(b)

40%

(c)

35%

(d)

39%

62. One of the following business group is the largest tax payer for the year 2006-07
in the country:(a)

Tatas

(b)

Birlas

(c)

Reliance

(d)

Bharti Airtel

63. The name of the merged Airline of Air India and Indian Airlines is:(a)

Air India

(b)

Indian

(c)

Go-Air

(d)

Air India Express

Go-Air (d)

Air India Express

64. The low cost arm of Air India is called:(a)

Air India

(b)

Indian

(c)

65. National Aviation Company of India Limited is the merged companys name of
(a)
(c)

Air India & Indian Airlines (b)

Kingfisher & Deccan Air

Jet Air & Air Sahara

(d)
None of the above

66. For the year 2006-07, the trade deficit for India is:(a)

$64 bn

(b)

$46 bn

(c)

$ 50 bn

(d)

$60 bn

67. For the year 2006-07, the aggregate Inward remittances by the Indian workers,
working abroad is
(a)

$30.8 bn

(b)

$27.8bn

(c)

$29.8bn

(d)

$28.8 bn

68. For the year 2006-07, the current account deficit for India is:(a)

$9 bn

(b)

$10 bn

(c)

$11 bn

(d)

$8 bn

69. For the year 2006-07, the capital account surplus for India is :(a)

$40 bn

(b)

$42 bn

(c)

$45 bn

(d)

$47 bn

70. Impossible trinity is mainly connected with the

(a) monetary policy(b)

fiscal policy (c) economic policy (d) Industrial policy

71. One of these is not included in the Impossible Trinity of a Central Bank
(a) Achieving GDP Growth
(c) Achieving Interest Rate autonomy

(b)
(d)

Achieving stable forex rates

Regulating Financial Institutions

72. Safety Net facility means

(a)
(b)
(c)
(d)

facility to safe keep the securities with Bank

commitment to buy the IPO shares at pre-determined rates after allotment
safety provided by IT Department for Tax Payers
safety provided by police to the citizens

73. As per the RBIs clean note policy, writing on a currency note is
(a) a crime

(b)

an offence

(c) a punishable offence

(d)

none of these

74. ASCBs (excluding RRBs) shall have to maintain a minimum of ____% of average
fortnightly CRR on each day of the fortnight.
(a)

50%

(b)

60%

(c)

70%

(d)

80%

75. What is the floor rate of CRR below which, RBI cannot reduce?
(a)

3%

(b)

5%

(c)

0%

(d)

None of these

KEY
Q
1
11
21
31
41
51
61
71

A
c
d
d
c
b
b
c
d

Q
2
12
22
32
42
52
62
72

A
c
a
a
d
c
d
a
b

Q
3
13
23
33
43
53
63
73

A
c
b
b
b
b
d
a
c

Q
4
14
24
34
44
54
64
74

A
a
b
b
a
b
c
d
c

Q
5
15
25
35
45
55
65
75

A
c
b
a
c
b
b
a
c

Q
6
16
26
36
46
56
66

A
c
c
d
b
c
d
a

Q
7
17
27
37
47
57
67

A
d
d
c
b
b
a
d

Q
8
18
28
38
48
58
68

A
b
a
b
b
a
b
a

Q
9
19
29
39
49
59
69

A
c
c
a
c
b
d
c

Q
10
20
30
40
50
60
70

A
a
c
c
c
a
b
a