Professional Documents
Culture Documents
(1) Only A (2) B and C (3) A and B (4) A, B & C (5) None of these
Q.89. In Regional Rural Banks, What is the contribution of the Sponsor Banks ?
(1) 50% (2) 15% (3) 35% (4) 25% (5) None of these
Q.90. Which one of the following is not a part of the World Bank Group ?
(1) The International Finance Corporation (2) Asian Development Bank
(3) The Multi-lateral Investment Guarantee Agency (4) International Development Association.
(5) None of these
Q.91. The nature of convertibility of the Indian Economy is ______.
(1) Convertibility at capital account (2) Convertibility at trade account
(3) Free Convertible (4) Convertibility at current account
(5) None of these
Q.92. What is the full form of LERMS ?
(1) Liberalised Exchange Rate Management System
(2) Long Elimination Reserve Management System
(3) Liberalised Extended Related Management Stock
(4) Linguistic Exchange Reserve Management Scenario
(5) None of these
Q.93. Which of the following is the basic objective of R.B.I's monetary policy ?
(1) To control deficit in the balance of payment (2) To control public expenditure
(3) To control deficit of the budget (4) To control cost & availability of money
(5) None of these
Q.94. Stagflation refers to ________.
(1) High inflation in periods of full employment
(2) High deflation in periods of high unemployment
(3) Deflation in periods of stagnant employment
(4) High inflation in periods of high unemployment
(5) None of these
Q.5.(2) In Open unemployment people are willing Q.30.(4) Code sharing is term related to Air
to work but they do not get it. Transport Industry.
Q.6.(3) Credit Policy (also called monetary policy) Q.31.(3) WADA is related to Dope Testing.
Q.7.(4) Book Keeping entry only. Q.32.(4) Bank Rate is a rate at which commercial
banks borrow long term funds from RBI.
Q.8.(5) United Stock Exchange will function in four
currency derivatives. Q.33.(4)
measure, which could offer a much better It measures the total monetary resources
picture of price movements at the of the country.
consumer-level across the country. Q.38.(4) National Income is monetry value of all
Q.15.(1) FDI limit in Public Sector Bank is 20%. final goods and services of a
country.
Q.16.(4) It is 940 females over 1000 males in
census 2011 as compared to 933 females Q.39.(3) In India First Five year plans are formed by
in 2001 census. planning commission in 1951.
Q.17.(5) All of the above Q.40.(3) It is a process developed by SEBI for
applying to IPO. In ASBA, an IPO
Q.18.(2)
applicant's account doesn't get debited
Q.19.(1) Fist Five Year Plan until shares are alloted to him.
Q.20.(1) Call Money market is related to Share Q.41.(3) A debenture holder is a person or an
Market it is controlled by SEBI. organization that has lent money to a
Q.21.(2) Finance commission is included in Article company or firm in the form of debentures
280 of Indian constitution. or loan.
Q.22.(1) Q.42.(1) It provides post-retirement financial
security to over 2.73 lakh Gramin Dak
Q.23.(1) NAMA (Non Agriculture Market Access) is
Sevaks (GDS). The Department of Posts
the word is related to World Trade Organisation
has decided to deposit Rs.200 GDS per
Q.24.(3) SEBI is related to share market. U.K. Sinha month.
is Chairman of SEBI as on December 2011
Q.43.(2) NABARD was established on 12th July
Q.25.(1) National Planning Council is established in 1982 and owned by the Government of
1963. It is a non-constitutional body. India and Reserve Bank of India (RBI). It is
Q.26.(3) Post office do not sell stamp papers an apex development bank of the country
for supporting and promoting agriculture
Q.27.(3) Priority sector Advance is 10%. and rural development.
Q.28.(2) Economic planning comes under
Mahendra's GENERAL AWARENESS
Q.44.(2) Non-performing assets, also called non- Q.56.(3) This is to improve the present status of
performing loans, are loans, made by a women in agriculture and to enhance the
bank or finance company, on which opportunities for her empowerment and is
repayments or interest payments are not a sub component of National Rural
being made on time. Livelihood Mission.
Q.45.(4) The departments under finance ministry Q.57.(5) All are development banks.
are: Q.58.(5) Bank of Sweden Prize is another name for
(A) Economic Affairs Noble Prize for Economics.
(B) Expenditure Q.59.(4) Market Cost = Factor Cost +Advertisement
(C) Revenue Cost + Transportation Cost
(D) Financial Services Q.60.(5) In first phaze in the year 1969 - 14 banks
were nationalised with a paid up capital of
(E) Disinvestment Rs. 50 crores.
Q.46.(2) Aixs bank is a private sector bank in India.
Q.61.(2) The Banking Ombudsman, promoted by
Q.47.(3) IDR is an instrument in the form of a RBI provides speedy solutions to the
Depository Receipt created by the Indian grievances faced by the customers from
depository in India against the underlying various banks.
equity shares of the issuing company. Q.62.(1) Targated Growth rate is 8% in 12 th
Five
Q.48.(1) Income Recieved by public borrowing year plan.
Q.49.(1) Interbank Mobile Payment Service (IMPS) Q.63.(3) Gilt - Edged market means Market of
launch on 22nd November 2010 by Government Securities.
Shyamala Gopinath, DG RBI at Mumbai Q.64.(4) A unit-linked insurance plan (ULIP) is a
and this service is now available to the type of life insurance where the cash value
Indian public. IMPS offers interbank of a policy varies according to the current
electronic fund transfer service through net asset value of the underlying
mobile phones. investment assets.
Q.50.(1) National Security Depository limited. Q.65.(3) Currency devaluation takes place when
Q.51.(3) All are true. one country's currency is reduced in value
in comparison to other currencies.
Q.52.(5) Swabhiman is a nationwide programme on
financial inclusion. Q.66.(1) Foreign Exchange Management Act.
Q.53.(3) Badla is a carry forward system in stock Q.67.(4) Narrow Banking restrict banks to hold
trading. liquid and safe government bonds
Q-54.(3) A committee on capital account Q.68.(3) This exchange rate is used to determine an
convertibility was setup by the Reserve individual country's currency value relative
Bank of India (RBI) under the to the other major currencies in the index,
chairmanship of former RBI deputy as adjusted for the effects of inflation.
governor S.S. Tarapore to "lay the road Q.69.(4) All are true.
map" to capital account convertibility.
Q.70.(4) IRDA allows portability shifting of policies
Q-55.(5) Prime Minister, Dr. Manmohan Singh, from one insurer to another on same terms
inaugurated a call centre 'Udyami Helpline, from July 1, 2011.
which will give details about business Q.71.(3) Equity (finance), the value of an ownership
possibilities and loan facilities to i n t e r e s t i n p r o p e r t y, i n c l u d i n g
entrepreneurs keen on setting up small shareholders' equity in a business.
units.
Q.72.(1)
GENERAL AWARENESS Mahendra's
Q.73.(1) Khusro committee. Q.96.(1) Transparency in Lending Rates of Bank.
Q.74.(4) Non-Banking Financial Company, a Q.97.(2) Commercial papers are a money-market
company registered under the Companies security issued by large banks &
Act, 1956 of India, engaged in the business corporations to get among to meet short
of loans and advances, acquisition of term debt obligations.
shares, stock, bonds, debentures and Q.98.(2) The proposed bill is on the lines of Right to
securities issued by government or local Information Act.
authority, or other securities of a
Q.99.(4) Ablation is the process of transferring heat
marketable nature, leasing, hire-purchase, by removing material through melting,
insurance business, or chit business. vaporization or other erosive process.
Q.75.(4) Prevention of Money Laundering Act. Q.100.(4) Treasury Bills are the instruments of short
Q.76.(3) Bad debts occur when the debtor has term borrowings by the Central /State
declared bankruptcy, and if the bad debts Govt.
are recovered it will be considered as an Q.101.(2) Fiscal Policy.
income.
Q.102.(3) In 1980, 6 banks were nationalised with a
Q.77.(2) Epicenter is point on earth surface that is capital of 200 crores.
above hypocenter.
Q.103.(4) Net Demand and Time liabilites.
Q.78.(4) NABARD
Q.104.(5) Base year for all India Index of Industrial
Q.79.(2) Production is 2004-2005 with base Rs.100
Q.80.(3) Ministry of Finance Q.105.(4) Regulation of Inter state Tract.
Q.81.(2) LLP is a partnership in which all partners Q.106.(3)
have a limited liability.
Q.107.(3) The period of fourth plan was 1969 to
Q.82.(3) 1974.
Q.83.(5) 2009 - 2010 Q.108.(2) Indian Gold Council.
Q.84.(1) 2004 Q.109.(3)
Q.85.(2) 1998 Q.110.(1) It is one of the lending arms of World Bank
Q.86.(4) Cheap Money Group.
Q.87.(3) Federal Reserve is Central Bank of Q.111.(2) Branch Banking.
America Q.112.(3) Near money is a term used in economics to
Q.88.(3) Dr.Vijay Kelkar is the chairman of 13 th
describe highly liquid assets that can be
Finance commission. easily converted into cash.
Q.89.(3) RRB'S - includes Q.113.(1)
50% --- Central Govt. Q.114.(1) Amount of gold that each member country
15% --- State Govt. of IMF contributes as part of its
membership obligations to the fund and
35% --- Sponsor bank/Lead bank can borrow when need arises.
Q.90.(2) Asian Development Bank. Q.115.(3) It was launched with an aim of enhancing
Q.91.(4) farm profits, creating employment
opportunity, restoring soil fertility.
Q.92.(1) Liberalised Exchange Rate Management
System. Q.116.(1) Currency Notes.
Q.93.(4) Q.117.(3) Flare
Q.94.(4) It is a condition of high inflation in period of Q.118.(3) Employee Stock Option Plan
high unemployment Q.119.(3) Fiat money is money that has value only
Q.95.(2) Cash reserve ratio is a part of RBI's monetary because of government regulation or
policy and all other are the steps taken by law.
government in its fiscal policy
Q.209.(5) RBI increases the minimum Statutory Q.225.(3) In FCNR accounts the payment of Interest
Cash Reserve Ratio of Commercial banks is effected in same currency in which
when the economy is experiencing deposit stands.
inflation and when the central bank aims Q.226.(1) Commercial paper is a money - market
credit contraction. security issued by large commercial banks
Q.210.(1) to meet short term debt obligations.
Q.211.(3) Assets that can be quickly convertible into Q.227.(3) The methods used by the RBI for credit
cash. control are qualitative and quantitative.
Q.215.(3) Treasury bills are issued by Government & Q.231.(2) The most important component of the
sold by RBI in form of small bonds to liabilities of Commercial Banks in India is
banks. Time Deposits.
Q.216.(5) Bill of Exchange, bond, equity shares, Q.232.(1) An increase in foreign exchange assets of
saving deposit, with commercial banks, Reserve Bank of India means increase in
bankers acceptances, cash surrender high powered money.
values of life insurance policies, etc are Q.233.(2) Credit Deposit Ratio is not a method of
examples or considered as near money. credit control.
Q.217.(2) Forced savings are when consumers are Q.234.(2) The Largest Nationalised Commercial
not allowed to spend all of their income Bank in India is State Bank of India.
upon current consumption either self Q.235.(2) Reserve Money includes currency with the
imposed or imposed by contract. public and Cash with Banks.
GENERAL AWARENESS Mahendra's
Q.236.(4) Regulation of financial institutions is not an Q.254.(3) Creation of credit is a function performed
objective fiscal policy. by the commercial Banks in a country.
Q.237.(3) Education is not included in Infrastructure Q.255.(2) The Reserve Bank of India follows
in India. Minimum Reserve System of Note Issue.
Q.238.(3) The National Agricultural Insurance Q.256.(4) Free Trade Area means a group of
Scheme was started by the government of countries which abolished all Tariff and
India in 1999. quantitative restriction between
Q.239.(1) Interest on national debt is included in themselves.
GNP. Q.257.(3) Export
Q.240.(4) Disinvestment of equity in the public sector Q.258.(1)
is not a measure of globalization. Q.259.(2) Teaser loan are those loan in which rate of
Q.241.(3) Household sector contributes most to the interest in the initial period is less and goes
savings in India. up subsequently.
Q.242.(3) The State Bank of India was established on Q.260.(3) International Development Asociation
the recommendation of All India rural credit which is world Bank affiliate is connsidered
survey headed by Shri A.D. Gorewala. as 'soft loan' window.
Q.243.(2) Money Supply, M1 includes Currency + Q.261.(2) Wariable reserve ratio open market
Demand Deposits with Banks + Other operations are Instrument monetary policy
Deposits with RBI. Q.262.(2) MERA (Small & medium enterprises rating
Q.244.(3) Loans from central Government has been agency) was established in 2005.
the most important source of financing the Q.263.(2) Bank rate policy is the component of
state Government's Gross Fiscal Deficit in Monetary policy
India.
Q.264.(3)
Q.245.(1) The system of Ad-hoc Treasury Bills in
India was replaced by Ways and Means Q.265.(4) If the RBI sells securities in the market the
Advances with effect from 1 April, 1997. Bank deposits will deadline
Q.246.(2) In the context of liberalisation and Q.266.(2) The majority of central Government
globalisation planning has an indicative Q.267.(2) The central Bank can decrease the Bank
role to play in providing safety net for the credit component of the money supply by
poor. increasing the Bank rate.
Q.247.(4) Corporation Tax is levied by the union and Q.268.(3) Parallel Economy is also referred as Black
belongs to it exclusively. Economy.
Q.248.(4) Treasury Bills is an Example of Near Q.269.(2) Oudh commercial Bank was the first
Money. commercial Bank of limited liability
Q.249.(2) Mutual Fund manged by Indians.
Q.250.(4) Expansion is not an objective of Bank's Q.270.(3) A letter of credit is a letter from a Bank,
portfolio management. guarantceing that a by yea's payment to a
seller will be received on time and for the
Q.251.(2) A Bank which controls credit is called correct amount.
Central Bank.
Q.271.(2) Time liabilitiy are those liabilities which
Q.252.(4) When the government imposes physical Bank have to pay after specific time
and monetary controls to check open period. Fixed deposits, cash certificate,
inflation it is known as suppressed time liablities portion of Saving bank
inflation. deposits come under Time Liabilites.
Q.253.(3) The cause of deflation is lack of money Q.272.(4) Regional Rural Banks are classfied under
supply as compared to supply of goods public sector Banks
and services.
Mahendra's GENERAL AWARENESS
Q.273.(3) Government of India deades the currency Q.286.(3) The ability of a Commercial Bank to
denominatio value. increase its loans and Investment depends
on its excess reserves.
Q.274.(1) The country's first ever socio-economic
and caste census was started from Q.287.(2) Economic Development is a continuous
Hezamara in Tripura state. and long term process.
Q.275.(4) Spandana is India's leading microfinance Q.288.(5) Microfinance is a type of banking service
institutions. It provides financial service that is provided to unemployed or low-
towards lower income customers, income individuals or groups who would
primarily women. otherwise have no other means of gaining
financial services. Microfinance provides
Q.276.(3) The Central Bank increases the minimum
low income people an opportunity to
Statutory cash reserve ratio of the
become self-sufficient by providing a
Commercial Banks when the economy is
means of saving money, borrowing money
experiencing Inflation and the Central
and insurance.Interest rates charged by
Bank aims credit contraction.
microfinance institutions are generally
Q.277.(4) The primary objective of selective credit lower than those offered by normal banks,
control is to influence allocation of credit some opponents of this concept condemn
among different borrowers and users. microfinance operations for making profits
Q.278.(2) All the given three quantitative measures off of the poor.
i.e. changing the bank rate, open market Q.289.(1)
operations and increasing the cash-
Q.290.(4) Cheque Book is not a value added service
reserve ratio are taken by RBI to control
offered by a bank.
inflation.
Q.291.(1)
Q.279.(2) Bank rate refers to the rate at which
Central Bank rediscount bills of exchange Q.292.(5) PURA stands for Provision of Urban
of Commercial Banks. Amenities in Rural Areas
Q.280.(1) Deposits with the Central Bank and cash in Q.293.(2) Banking Sector comes under Service
hand reduce the money available for credit Sector.
creation. Q.294.(2) The acronym 'RTGS' stands for Real Time
Q.281.(1) Short term commercial borrowings is Gross Settlement, which can be defined as
included in the capital account of balance the continuous (real-time) settlement of
of payment. funds transfers individually on an order by
order basis (without netting).
Q.282.(1) Frequent changes in the Bank rate leads to
the expansion and contraction in the flow Q.295.(1) The Securitisation and Reconstruction of
of money supply, thats why RBI placed the Financial Assets And Enforcement of
greatest reliance on the Bank rate during Security Interest Act, 2002 (SARFAESI
the last ten years. Act) is an Act to regulate securitisation and
reconstruction of financial assets and
Q.283.(2) Foreign Exchange reserves includes the
enforcement of security interest and for
following components-
matters connected therewith or incidental
1- Gold thereto.
2- Special Drawing Rights (SDRs) Q.296.(1) Q.297.(2) Q.298.(4)
3- Foreign - currency assets Q.299.(2) CIBIL
4- Reserve Tranche with I.M.F. Q.300.(1) Banking sector
Q.284.(2) Increasing Trend. Q.301.(2) ASEAN
Q.285.(3) In case of closed economy GNP and GDP Q.302.(2) NABARD
would be same because there is no net
Q.303.(3) The Prime Minister
income earned from abroad.
GENERAL AWARENESS Mahendra's
Q.304.(1) Q.305.(2) Q.306.(3) Q-325.(4) Small loans provided by the banks to very
Q.307.(1) poor families is known as Micro finance.
Q.308.(2) A,AA+ & AAA are credit ratings Q-326.(2) "One Family One Bank" is the tagline of
Q.309.(1) High powered money is the Bank's Bank of Maharashtra.
reserves at Central Bank Q-327.(2) Co-operative movement has been highly
Q.310.(1) A significant decrease in the demand for successful in the Milk production.
loans will force banks to adjust their
Q-328.(1) UNDP uses Human development Index for
portfolios.
measurement of the quality of people's life.
Q.311.(3) The process of credit creation has the
effect of increasing the supply of money. Q-329.(1) CAPART was set up in 1986 to promote
new technological inputs rural sector.
Q.312.(4) Controlling credit expansion is the function
of central Bank Q.330.(4) Nabard has stabilized core banking
infrastructure of insuring prosperity and
Q.313.(3) M is the Broader measure of money
3
progress in integrated development of
supply M is Narrow money.
1
Rural Area.
Q.314.(2) RBI has helped to finance India's foreign
Q.331.(3) Open market operation" controlled by RBI
trade through EXIM Bank.
Q.332.(2) Only 2
Q.315.(4) A Maharatna Company can invest Rs 5000
crore independently for a project. Q.333.(2) Q.334.(2) Q.335.(3)
Q.316.(3) Tier -1 capital is the core measure of a Q.336.(1) Q.337.(4) Q.338.(4)
Bank's Financial strength from a Q.339.(1) Q.340.(3) Q.341.(1)
regulatoris point of view.
Q.342.(4) Q.343.(1) Q.344.(5)
Q.317.(3) Swabhiman Scheme is related with
Q.345.(1) Q.346.(1) Q.347.(3)
Financial Inclusion.
Q.348.(1) Q.349.(4) Q.350.(1)
Q.318.(3) Provision coverage ratio refers to the
percentage of the loan amount that the Q.351.(4)
Bank has set aside as provisions to meet Q.352.(4) The minimum required capital to set up a
an eventuality. bank by a corporate entity is set at Rs.500
Q-319.(3) Goods and Services Tax will replace VAT. crore in comparison to the present
requirement of Rs. 300 crore.
Q-320.(4) Due to Increasing overhead cost of tax
Q.353.(4) The economy of India now a days facing
collection and the lack of political will, high inflation and high food and commodity
Agricultural Taxation in India is difficult. problems.
Q-321.(1) NABARD does not operate the Kisan Q.354.(2) The primary monetary policy technique
Credit Card scheme. employed by the Reserve Bank of India is
open market operations.
Q-322.(3) The sources of Non - Tax Revenue are -
Q.355.(3) When a Bank writes off a loan as bad, its
(1) Hospital fee on medical facilitics
total assets and capital decreases by that
(2) Entry fee on museums amount.
(3) Income from Radio & T.V. Broadcasting Q.356.(2) RBI maintains the cash reserve ratio
(CRR) which at present is 5.5%.
Q-323.(2) CBS stands for Core Banking Solution.
Q.357.(2) Channel Financing is the mechanism
Q-324.(2) Agriculture is the backbone of Indian through which a Bank/Financial institution
economy as it employed 52% of the total meets the various funds related
workforce. requirements along the supply chain at the
suppliers end.
Mahendra's GENERAL AWARENESS
Q.358.(1) Invisible export means export of services Q.374.(3) These currency swaps help to limit or
like consulting services, shipping services, manage exposure to fluctuations in
tourism etc. interest rates
Q.359.(2) Loan recovery rules is not the part of Q.375.(3) The third of the Basel Accords was
prudential guidelines issued by Reserve developed in a response to the
Bank of India. deficiencies in financial regulation
revealed by the global financial crisis.
Q.360.(2) A crossed cheque is a cheque which is
payable only through a collecting banker Q.376.(2) M2 includes the amount of money in
and not directly at the counter of the bank. circulation in notes and coin plus non-
interest-bearing bank deposits, building-
Q.361.(2) A bank draft is traditionally a cheque drawn
society deposits, and National Savings
on a bank's funds
accounts.
Q.362.(3) Near money is highly liquid assets which
Q.377.(3) Contractual savings are in the form of
are not cash but can easily be converted
regular payments into long-term
into cash, such as bank deposits and
investments, such as pension schemes
Treasury Bills. Similar to cash equivalents.
Q.378.(2)
Q.363.(3) Due to steep reduction in direct taxes the
liquidity with people will be more, Q.379.(1) A foreign bank is a bank with head office
subsequently, the aggregate demand will outside the country in which it is located.
become higher. Due to rising demand Q.380.(1)
more and more people will be employed so
that production can be maximized. Q.381.(1)
Eventually, this increase in output will Q.382.(4) Statutory Liquidity Ratio or SLR refers to
become smaller and the price of goods will the amount that all banks require
rise due to capacity constraints. maintaining in cash or in the form of Gold or
Q.364.(1) RBI acts as the lender of the last resort by approved securities.
providing rediscount facilities to scheduled Q.383.(1) Excess liquidity in market
banks. Q.384.(2) Good people to banks with
Q.365.(4) Q.385.(1) CSO
Q.366.(5) Imperial Bank was formed after merging Q.386.(2) 1 Jan 1949
st
Q.424.(4) The other services available at ATMs Q.438.(2) The public debt office function under the
includes, account information, purchase of control of reserve bank of india..