[Finance and Management]

MCQs 1

SET 1

01. Which of the following cannot be called as a debt instrument as referred in

the financial transactions?

a) Certificate of deposit;
b) Bonds;
c) Stocks;
d) Commercial papers;
e) Debentures

02. Whenever RBI does some open market operation transactions, actually it
wishes to regulate which of the following?

a) Inflation;
b) Liquidity in economy;
c) Borrowing powers of the banks;
d) Flow of foreign direct investments;
e) None of the above

03. In economics, it is generally believed that the main objective of a public

sector financial company like bank is to:

a) Employ more and more people;

b) Maximize the total profits;
c) Maximize total production;
d) Provide financial services to the people of the nation of its origin across the country;
e) sell the goods at subsidized rates

04. In a company by the use of price sensitive corporate information about

the company, people closer to the company try to adopt the technology to
make gains or cover losses in share market dealings and such process
is known as:

a) Insider trading;
b) Future trading;
c) Foreign trading;
d) Stock trading;
e) None of these
 04. What is meant by Repo rate?

a) When a bank is in need of cash it can it can discount bills of exchange and avail
loan facilities from Reserve Bank of India.
b) When a bank has excess cash, they buy securities from RBI against cash on the
condition that they resell the securities to RBI on a pre fixed day and price
c) It is rate at which RBI allows temporary loan facilities to commercial banks
against government securities on the condition that the bank will repurchase the
securities within a short period.

d) It is a rate which is offered by banks to their most valued customers or prime

customers;
e) None of these

06. Which of the following committee has given its recommendations on

Financial inclusions?

a) Rakesh Mohan committee;

b) Rangarajan committee;
c) Sinha committee;
d) Gadgil committee;
d) None of these

07. The actual return of an investor is reduced sometimes when the prices of
the commodities go up all of a sudden and in financial sector this type of
phenomenon is known as

a) Probability risk;
b) Market risk;
c) Inflation risk;
d) Credit risk;
e) None of these

8. Which of the following policies of the financial sectors is basically designed

to transferring local financial assets into foreign assets freely and at market
determined exchange rates?

a) Capital account convertibility;

b) Financial deficit management;
c) Minimum support price;
d) Restrictive trade practices
e) None of these

9. A customer is willing to purchase some US dollars in the country. He/she

should go to:

a) Public Debt Division of the RBI only;

b) American Express Bank only;
c) RBI or any branch of a bank which is authorized for conducting such
business;
d) Ministry of Foreign affairs;
e) None of these

10. The ratio of the cash reserves that the banks are required to keep with RBI is
known as:

a) Liquidity ratio;
b) Statutory liquidity ratio;
c) Cash Reserve Ratio;
d) Net demand and time liabilities;
e) None of these

11. The availability of cash and other cash like marketable instruments that are
useful in purchases and investments are commonly known as:

a) Cash crunch;
b)Liquidity;
c) Credit;
d) Marketability;
e) None of these

12. Many banks have adopted/launched Core Banking Solutions and what do
you mean by core banking solutions?

a) A marketing strategy adopted by the banks;

b) A new type of automated teller machines useful for rural population;
c) A delivery channel for quick and fast delivery;
d) A new product launched to help senior citizens only as they are not able to visit the
branches/ATMs frequently;
e) None of these
 13. Which of the following terms are not used in banking sector?

a) Statutory liquidity ratio;

b) Non performing asset;
c) Credit rating;
d) Fixed;
e) REPO

14. An account in which trading of shares in their electronic form is done is

known as:

a) Demat account;
b) NRE account;
c) NRO account;
d) FCNR account;
e) RFC account

15. Fourteen banks were nationalized in the country during the first stage on:

a) 19.07.1970;
b) 19.07.1969;
c) 19.07.1971;
d) 18.07.1969;
e) 15.07.1969

16. the sponsorship between State government, central government and

sponsor bank is in the ratio of--------- in respect of Regional Rural Banks in the
country:

a) 15-50-35;
b) 50-35-15;
c) 35-15-50;
d) 35-50-15;
e) 15-35-50

17. Which of the following holds your credit history, such as your first bank account, any
credit cards you have, or any applications for finance you may have made?

a. The Treasury Bureau

b. Bureau of Administration
c. Credit Reference Agency
d. Bureau of Diplomatic Security
18. Which of the following exposures include foreign exchange and financial derivative
contracts?

a. Liquidity sensitive
b. Profitability sensitive
c. Market sensitive
d. Debt sensitive

Budget 2016-17

Budget set 1

1. Banks get Rs crore towards recapitalisation of PSB:

a) 25,000
b) 10,000
c) 30,000
d) 15,000

Answer: a

2. Target of disbursement under MUDRA increased to . crore

a) 1 Lakh
b) 1.5 Lakh
c) 1. 8 Lakh
d) 2.2 Lakh

Answer:c

3. . will be listed in the stock exchange.

a) Private Sector Banks
b) Public Sector Banks
c) General Insurance companies
d) All of the above

Answer: c

4. This budget has dedicated irrigation fund in NABARD of Rs cr

a) 25,000
b) 20,000
c) 30,000
d) 15,000
Answer: b

5. Nominal premium and highest ever compensation in case of crop loss under the
..
a) PM Fasal Bima Yojna
b) PM Krishi Sinchai Yojna
c) Rashtriya Krishi Vikas Yojna
d) Gramin Bhandaran Yojna

Answer: a

6. Total allocation for agriculture and farmer welfare at Rs crores

a) 35984
b) 42000
c) 35000
d) 23570

Answer: a

7. Govt will amend in passenger vehicle segment to allow innovation.

a) Motor Vehicle Act
b) Customer Act
c) Small and Heavy Vehicle Act
d) All of the above

Answer: a

8. 100 per cent FDI in marketing of produced and marketed in India

a) Mobile Phones
b) Private Sector Banks
c) Food Products
d) Insurance Companies

Answer: c

9. New greenfield ports to be developed on east and . coasts

a) West
b) North
c) South
d) North-East

Answer: a

10. Dedicated Rs. . crore for roads and highways. Total allocation for road
construction, including PMGSY, Rs 97,000 crore.
a) 60,000
b) 55,000
c) 50,000
d) 40,000

Answer: b

11. to be given option to remain open all seven days in a week across markets.
a) Malls
b) Private Offices
c) Banks
d) Shops

Answer: d

12. Objective to skill 1 crore youth in the next 3 years under the .
a) Startup, Standup
b) PM Kaushal Vikas Yojna
c) PM Rozgaar Bhatta Yojna
d) Deen Dayal Upadhyaay Grameen Kaushalaya Yojna

Answer: b

13. Senior citizens will get additional healthcare cover of Rs under the new
scheme
a) 25,000
b) 45,000
c) 30,000
d) 12,000

Answer:c

14. Pollution cess of per cent on small petrol, LPG and CNG cars; . per cent
on diesel cars of certain specifications; .. per cent on higher-end models.
a) 1, 2, 3
b) 1, 2.5, 4
c) 1.5, 2, 4
d) 1.5, 2.5, 4

Answer: b

15. 0.5 per cent . Cess to be levied on all services.

a) Swachh Bharat
b) Krishi Kalyan
c) Kaushal Vikas
d) None of the above

Answer: b

16. Rs 1,000 crore allocated for new EPF scheme. Full form of EPF:
a) Employees Provision Fund
b) Employees Provident Fund
c) Employement Provident Fund
d) Employees Partially Fund

Answer: b

17. Swacch Bharat Abhiyan allocated Rscrores.

a) 10,000
b) 9,500
c) 9,000
d) 8,500

Answer: c

18. 300 urban clusters to be set up under Mission

a) Shyama Prasad Mukherji Rurban
b) Smart City
c) AMRUT
d) PM Awas Yojna

Answer: a

19. How much schemes are proposed for Animal Welfare?

a) 4
b) 5
c) 3
d) 2
Answer: a

20. After this budget What will turn Costlier?

a) Tobacco
b) Cigar
c) Cigarette
d) All of the above

Answer: d
Budget set 2

1. Finance Minister Arun Jaitley announced the nine pillars for the Union Budget 2016-2017.
Which of the following is not included in the nine pillars?
a) Agriculture and farmers' welfare
b) Fiscal discipline
c) Tax reforms to reduce compliance burden
d) Special focus on working women

2. As per the Union Budget 2016-2017, how many hectares of land will be brought under
irrigation under the Pradhan Mantri Krishi Sichai Yojana?
a) 28.5 lakh hectares
b) 32.5 lakh hectares
c) 22.6 lakh hectares
d) 11.2 lakh hectares

3. As per the Union Budget 2016-2017, what is the amount allocated for the Swachch Bharat
Abhiyan?
a) 10,000 crore rupees
b) 9,000 crore rupees
c) 11,000 crore rupees
d) 6,000 crore rupees

4. The Union Budget 2016-2017 saw the highest ever amount allocated for the rural
employment scheme MNREGA. What is that amount?
a) 40,000 crore rupees
b) 50,500 crore rupees
c) 38,500 crore rupees
d) 39,500 crore rupees

5. In the Union Budget 2016-2017, Arun Jaitley set a target of electrifying 100 per cent villages
by
a) 1 May 2018
b) 1 June 2018
c) 1 May 2017
d) 1 May 2019

6. In the Union Budget 2016-17, excise duty on tobacco products except bidis has been raised
by
a) 12-13%
b) 10-15%
c) 15-17%
d) 10-12%

7. As per the Union Budget 2016-17, how much amount was allocated towards Agriculture and
Farmers welfare?
a) 34,980 crore rupees
b) 40,500 crore rupees
c) 35,984 crore rupees
d) 36,000 crore rupees

8. In the Union Budget 2016-17, Arun Jaitley announced creation of a dedicated Long Term
Irrigation Fund in NABARD. What will be the initial corpus of the fund?
a) About 15,000 crore rupees
b) About 10,000 crore rupees
c) About 16,000 crore rupees
d) About 20,000 crore rupees

9. How many Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban
Mission?
a) 300
b) 200
c) 400
d) 500

10. Name the proposed structure scheme announced in the Union Budget 2016-17 to help
Panchayat Raj Institutions deliver Sustainable Development Goals.
a) Rashtriya Gram Abhiyan
b) Rashtriya Gram Swaraj Abhiyan
c) National Village Self-governance Scheme
d) Rashtriya Gram Swasashan Abhiyan

11. How many stores will be opened under Prime Ministers Jan Aushadhi Yojana during
2016-17?
a) 1000
b) 2000
c) 3000
d) 4000

12. Name the proposed programme that will be started under National Health Mission
through public-private partnership mode to provide dialysis services to renal patients in all
district hospitals across the country.
a) National Services Programme for Renal Patients
b) National Dialysis Programme
c) National Dialysis Services Project
d) National Dialysis Services Programme

13. As per the Union Budget 2016-17, how much amount has been allocated to celebrate the
Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru
Gobind Singh?
a) 100 crore rupees
b) 50 crore rupees
c) 25 crore rupees
d) 20 crore rupees

14. What will be the EPF contribution of the Government of India for all new employees for
the first three years of their employment?
a) 8%
b) 8.33%
c) 7.33%
d) 6.5%

15. As per the Union Budget 2016-17, how much per cent of FDI will be allowed through FIPB
route in marketing of food products produced and manufactured in India?
a) 88%
b) 99%
c) 100%
d) 49%

16. How much amount has been allocated towards recapitalisation of Public Sector Banks?
a) 50,000 crore rupees
b) 20,000 crore rupees
c) 35,000 crore rupees
d) 25,000 crore rupees

17. As per the Union Budget 2016-17, target of amount sanctioned under Pradhan Mantri
Mudra Yojana has been increased to
a) 1,80,000 crore rupees
b) 1,90,000 crore rupees
c) 1,70,000 crore rupees
d) 2,00,000 crore rupees

18. Name the proposed programme that aims at connecting people through exchanges in areas
of language, trade, culture, travel and tourism.
a) Unity in Diversity
b) Ek Bharat Shreshtha Bharat
c) Unity in Diversity: One India
d) Shreshtha Bharat Ek Bharat

19. To lessen tax burden on individuals with income up to 5 lakh rupees, the ceiling of tax
rebate under section 87A has been raised from 2000 rupees to
a) 3000 rupees
b) 7000 rupees
c) 5000 rupees
d) 6000 rupees
20. Union Government announced Krishi Kalyan Cess of 0.5% on all taxable services to fund
farm initiatives. The cess will be effective from
a) 1 April 2016
b) 1 May 2016
c) 1 June 2016
d) 1 July 2016
Answers
1-(d) 6-(b) 11-(c) 16-(d)
2-(a) 7-(c) 12-(d) 17-(a)
3-(b) 8-(d) 13-(a) 18-(b)
4-(c) 9-(a) 14-(b) 19-(c)
5-(a) 10-(b) 15-(c) 20-(c)

All the best by Ur GKbuddy Suryansh