PREPARATORY QUESTIONS

BANKING/FINANCIAL KNOWLEDGE

PREPARATORY SET-13

Direction (Qs.1-20): Study the following questions carefully and choose your answer from the given five options.

 

Question No : 1

Indian Constitution has given some liberties to its citizens. Which of the following is NOT TRUE about it. Citizen is free to the liberty of___

(1) his expression and speech

(2) to gather peacefully without arms

(3) purchasing land and property in any part of the country

(4) to do business in any trade in the list prepared by Indian Government

(5) None of these

Question No : 2

According to “India Vision 2020”, India is trying to give full employment till 2020.  Then how many employments should be created every year?

(1) One million                       

(2) Two million                       

(3) Five million

(4) Ten million            

(5) None of these

Question No : 3

High rates of interest in a low inflation regime___

(1) attract people to make more and more investments

(2) discourage people to make an investment

(3) create atmosphere for capital formation

(4) are not favourable for credit expansion

(5) None of these

Question No : 4

Cash Reserve Ratio (CRR) has been raised by Reserve Bank of India (RBI). What is the rule of

CRR in the country’s economy especially in Banking Sector?

(A) It helps to control the inflation.

(B) It plays a great role in Banking Sector.

(C) It plays a great role for Banks in the Interest rates.

(1) Only (A)                

(2) Only (B)                

(3) Only (C)

(4) Only (A) and (B)   

(5) All (A), (B) and (C)

Question No : 5

A resident Indian wishes to invest some money in a foreign company who does not have any office/representative in India. What are the options available to him/her? Pick up the best option.

(A) Open a foreign currency account in a bank in that country.

(B) Send the money to some one known to him/her in that country.

(C) Open account in a foreign bank in India whose branch is in that country.

(1) Only (A)                

(2) Only (B)                

(3) Both (A) and (C)

(4) Only (A) and (B)

(5) None of these

Question No : 6

What are the options available to a foreign bank willing to enter the Indian Market?

(A) Open a branch in India.

(B) Launch a wholly-owned subsidiary.

(C) Acquire upto 90 per cent stake in a private sector bank.

(1) Only (A)                

(2) Only (B)                

(3) Both (A) and (C)

(4) Only (A) and (B)

(5) None of these

Question No : 7

As per the reports published in the newspapers the E-Commerce is growing very fast.  Which of the following is most preferred? (Pick up the area which is attracting maximum clientele.)

(1) Gifts          

(2) Jobsites    

(3) Books        

(4) Travel & Ticket     

(5) None of these

Question No : 8

Which of the following sectors is NOT considered as an ‘Infrastructure Sector’?

(1) Software              

(2) Cement                  

(3) Petroleum  

(4) Steel                      

(5) Power generation

Question No : 9

Which among the following terms is not related to Banking?

(1) Cash Reserve Ratio           

(2) Currency Exchange           

(3) Zero Hour

(4) Bank Rate              

(5) Repo Rate

Question No : 10

Which among the following is an international river?

(1) Brahmaputra       

(2) Cauvery                

(3) Krishna

(4) Narmada               

(5) Mahanadi

Question No : 11

Which of the following is considered as one of the major reasons of Global Warming or heating of Earth’s surface which is increasing these days?

(1) Distance between the Sun and Earth has reduced by about 45,000 kms. in the last 1000 years.

(2) A big unidentified celestial object is approaching Earth very last.  The radiation from it is making the Earth’s surface warmer

(3) Carbon pollution from fossil fuels traps the Sun’s heat instead of letting it radiate back safely out into space

(4) Sun has become slightly cooler by several degrees centrigrade and is not able to reabsorb the heat radiation back as it used to do earlier.

(5) None of these

Question No : 12

As per the reports published in the newspapers the average Price to Earnings (P/E) Ratio has fallen down in past few days.  This implies that

(1) investors are willing to pay much less for equity now

(2) investors are willing to pay more for equity now

(3) investors are not in mood to invest in equity now

(4) investors want to withdraw their investment in equity with immediate effect.

(5) None of these

Question No : 13

What is ‘Operation Sahayata’?

(1) The operation launched by the Indian armed forces to help earthquake victims of China.

(2) The operation launched by the Indian army to rescue the civilians from the militants in Jammu and Kashmir

(3) The operation launched by the Central govt to build up good relations with the North-Eastern people to muster their support to fight insurgency.

(4) The Indian armed forces have launched this operation to help the cyclone-ravaged people of Myanmar.

(5) None of these

Question No : 14

The government has granted ________ status to the Rural Electrification Corporation (REC), giving it financial and administrative autonomy.

(1) PSU                       

(2) private company   

(3) Navratna

(4) Mini Ratna             

(5) None of these

Question No : 15

Where is Asia’s largest chilli market?

(1) Guntur                 

(2) Medhak                 

(3) Belary (Kar)

(4) Rameshwaram (TN)          

(5) None of these

Question No : 16

The Chief Justice of High Courts and other justices are appointed by

(1) President             

(2) Governor of the state concerned  

(3) Chief Justice of Supreme Court

(4) Chief Minister of the state concerned       

(5) None of these 

Question No : 17

Which among the following is not an economic term?

(1) GDP growth rate  

(2) Per capita income  

(3) Hindu growth rate

(4) Phising                 

(5) Infrastructure

Question No : 18

Compilation of data on industrial production in India is done by which of the following agencies/organizations?

(1) National Testing Lab        

(2) Central Statistics Office

(3) Census Commission of India         

(4) Planning Commission of India      

(5) RBI

Question No : 19

Which among the following is a stock?

(1) National Capital    

(2) National Wealth    

(3) National Income    

(4) Both (1) and (2)   

(5) None of these

Question No : 20

UK government bonds are called gilt-edged securities because of

(1) low risk               

(2) high return            

(3) Both (1) and (2)

(4) long time period   

(5) None of these