Question No : 1

Bad debts mean which of the following?

(1) Amounts owed to a company that are going to be paid within a month

(2) Amounts owed to a company that are not going to be paid

(3) Amounts owed to a company that are going to be paid within 1 year

(4) Amounts owed to a company that are not going to be paid within 3 years

(5) Amounts owed to a company that are going to be paid within 6 months

Question No : 2

As per the news published in various newspapers, Government is planning to set up a regulatory body in educational field specially for

(1) higher education

(2) medical education

(3) elementary education

(4) secondary education

(5) adult education

Question No : 3

Which organization has the responsibility for minting of coins in India?

(1) RBI

(2) SBI

(3) Government of India

(4) Word Bank

(5) None of these

Question No : 4

In what way is RBI thinking of increasing the life of currency notes?

(1) By issuing more of coins

(2) Proposing action against misuse of notes

(3) Producing polymer notes

(4) Recalling after six months

(5) None of these

Question No : 5

Which of the following is one of the major activities of the National Bank for Agriculture and Rural Development (NABARD)?

(1) On -site inspection of Cooperative Banks and Regional Rural Banks (RRBs).

(2) Helping Government of India in preparing Union Budget and presenting it in the cabinet meeting. 

(3) Acting as custodian of the foreign exchange reserves of the country.

(4) Deciding rate of interest on Savings Bank Accounts in Public Sector Banks.

(5) Representing India in World Bank and other such agencies.

Question No : 6

Which of the following carries out ‘Open Market Operations’?

(1) Finance Ministry

(2) External Affairs Ministry

(3) Reserve Bank of India

(4) Planning Commission

(5) None of these

Question No : 7

Under provisions of which one of the following Acts, the RBI issues directives to the Banks in India?

(1) RBI Act

(2) Banking Regulation Act

(3) Essential Commodities Act

(4) RBI and Banking Regulation Act

(5) None of these

Question No : 8

Which one of the following tools is used by RBI for selective credit control?

(1) It discourages certain kinds of lending by assigning higher risk weights to loans it seems undesirable

(2) It advises banks to charge higher rate of interest for advance against certain commodities

(3) It advises banks to recall the loans for advances against certain commodities

(4) It advises banks to lend against certain commodities

(5) None of these

Question No : 9

For which one of the following Loan Products ‘teaser loans’ are offered by Banks?

(1) Educational Loans

(2) Commercial Loans

(3) Loans against security of gold

(4) Retail Trade Loans

(5) Home Loans

Question No : 10

What is ‘Kaveri”?

(1) India’s Air to Air Missile

(2) Unmanned Aircraft acquired from Israel

(3) India’s low cost laptop

(4) India’s guided Surface to Air Missile

(5) India’s indigeneous aircraft engine

Question No : 11

As per the Reserve Bank of India (RBI), the economic conditions in India are not yet suitable for full convertibility of Rupee. At present rupee is convertible at which of the following accounts?

(A) Fully at Capital Account

(B) Fully at Current Account

(C) Partially at Trade Account

(1) Only (A)

(2) Only (B)

(3) Only (C)

(4) Only (A) and (C)

(5) None of these

Question No : 12

Many times we read in newspaper that some bank(s) has/have to write off certain amount given/advanced by them. In banking terminology, what does ‘write off’ mean?

(1) Loans sanctioned on paper but bank has yet to make provision for the same so that borrower can withdraw the money.

(2) Big corporate loans for which bank has/have to take approval from RBI.

(3) Loans for which documentation work is yet to be completed.

(4) Bad and uncollectible loans.

(5) Those loans which can never become bad or uncollectable loans as they are given under some social assistance scheme by the Government of India.

Question No : 13

Many times we read in financial newspapers about Public Debt.  Which of the following is/are the components of the Public Debt?

(A) Market Loans

(B) External Loans

(C) Outstanding against saving schemes/Provident Fund

(1) Only (A)

(2) Only (B)

(3) Both (A) and (B)

(4) Only (C)

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

Question No : 14

As per the reports published in various financial newspapers/magazines, exports to Euro zones from various countries and India unexpectedly tumbled again in last two/three months.  What does it indicate?

(A) It has raised fresh doubts about the reality of the economic recovery of “16 country strong” Euro zone.

(B) Euro has yet to establish its credibility as an acceptable currency.  Countries still prefer US $ to any other currency for major trans-border trades.

(C) Euro zone countries do not wish to import much from India.

(1) Only (A)

(2) Only (B)

(3) Only (C)

(4) All (A), (B) and (C) 

(5) None of these

Question No : 15

As per the notification issued by the banks, the “third party ATM usage” will now be restricted to certain withdrawals and limits only.  What does it really mean?

(A) The ATM cardholders will not be able to withdraw from other banks’ ATMs under any circumstances.

(B) Customers of one bank may be able to withdraw only a limited amount from other bank’s ATMs.

(C) ATM card holders will have to pay a fee if they withdraw, money from other banks’ ATMs frequently.

(1) Only (A)

(2) Only (B)

(3) Only (C)

(4) Only (B) and (C)

(5) Only (A) and (C)

Question No : 16

Which of the following is a Credit Rating Agency functioning for the financial sector in India?

(1) VISA

(2) BOISL

(3) NEFT

(4) ICRA

(5) None of these

Question No : 17

Which of the following is NOT a division of Department of Economic Affairs of the Government of India?

(1) Fund Bank Division

(2) Forward trading and forward markets Division

(3) Foreign Trade Division

(4) Banking and Insurance Division

(5) Budget Division

Question No : 18

Which of the following is/are major initiatives to reduce poverty and unemployment, taken up by the Government of India?

(A) Higher allocation for National Rural Employment Guarantee Act.

(B) Increasing the coverage of Antyodaya Anna Yojana to 2.5 crore families.

(C) Implementation of differential rate of interest scheme by public sector banks.

(1) Only (A)

(2) Only (B)

(3) Only (C)

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

(5) None of these

Question No : 19

Which of the following is/are the objective(s) village energy security programme of the Government of India?

(A)  Programme is launched to provide energy security through biomass as some of these villages cannot be electrified through conventional means.

(B)  To create avenues for local employment.

(C)  To create awareness that environment can be saved by promoting the use of non- conventional methods of energy production.

(1) Only (A)

(2) Only (B)

(3) Only (C)

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

(5) None of these

Question No : 20

Which of the following organisations/agencies has initiated a “Rural Development Programme” in Uttar Pradesh so that villages can be developed in an integrated manner”?

(1) State Bank of India

(2) RBI

(3) ECGC

(4) SIDBI

(5) NABARD