Pandora Box IX
Feb.2011 Part I
1.Many insurance companies now a days sell the unit linked plans that safeguard the investment of the customer from market fluctuations, so that investments are protected in financially volatile times. The return in these policies are based upon the highest NAV. What does the NAV refer to ?
(A)Nil Asset Variation
(B)Net Asset Variation
(C)Net Asset Value
(D)New Asset Value
2.Which among the following duties is applied by a Government to control the exports of a commodity, so that the commodity can be used by the local markets than in foreign countries?
(A)Custom Duty
(B)Excise Duty
(C)Anti Dumping Duty
(D)Dumping Duty
3.Many a times we read in the newspapers that the Government of India signs DTAA to broaden the scope of article of exchange of information to include exchange of banking information. What does the DTAA refers to here?
(A)Double Taxation Article Agreement
(B)Double Taxation Avoidance Agreements
(C)Double Taxation Avoidance Arrangements
(D)Dual Tax Agreement Arrangement
4.Which among the following gas is used as reference to calculate "Global Warming Potential (GWP)"?
(A)Carbon Dioxide
(B)Methane
(C)Ozone
(D)Nitrogen Di-oxide
5.Many a times we read in the newspapers that in India, while rice (non-basmati) exports are banned, basmati (an aromatic premium rice variety) can be exported without quantitative limits subject to a specified MEP. What does MEP stands for here?
(A)Modified Export Provisions
(B)Maximum Export Permission
(C)Minimum Export Price
(D)Maximum Export Price
6.Which among the following correctly define Pinaka?
(A)A Multi Barrel Rocket Launcher Developed by DRDO
(B)A Missile Developed by DRDO
(C)A Missile imported from Russia
(D)A rocket launcher developed by France
7.Which among the following decides the Oil Prices in India?
(A)Government of India
(B)Government of Respective States
(C)Ministry of Petroleum
(D)Oil Companies
8.We read in the various newspapers that during the period from June, 2009 to September, 2010, the Ministry of Road Transport and Highways has achieved a target of constructing on an average 12.01 km of National Highways per day. However, this achievement is shorter compared to the target of constructing 20 km of Highways per day. To achieve this target, it is essential that at any given point of time approximately __________ of works are under way. Which among the following fills the blank correctly?
(A)10000 Kilometers
(B)15000 Kilometers
(C)20,000 Kilometers
(D)25,000 Kilometers
9.The State Bank of India (Amendment) Bill-2010, which was passed in the parliament in the later half of 2010, apart from other things, reduces the statutory minimum shareholding of the Central Government in the bank from _____to ______%. Which among the following set of figures fills the blank correctly?
(A)59, 52
(B)55, 51
(C)59, 55
(D)62, 51
10.Many a times we read in the newspapers about a term "Core inflation". The Core inflation is different from the general inflation because of the following?
(A)Core Inflation is caused by the supply Shock in certain essential commodities
(B)Core Inflation is the sudden increase in certain items of food grains
(C)Core Inflation is the inflation rate of a particular basket of commodities
(D)Core Inflation is just a misnomer
11.Mutual Funds are regulated in India by which among the following?
(A)RBI
(B)SEBI
(C)Stock Exchanges
(D)RBI and SEBI both
12.Bring out the only incorrect statement:
(A)Liquidity Adjustment Facility operates through daily repo and reverse repo auctions
(B)National Housing Bank can lend money to small scale industries towards their working capital
(C)Board for financial supervision is empowered to supervise primary dealers in India
(D)Norms for classifying assets of banks into standard and sub-standard categories are prescribed by RBI
13.Which among the following body authorizes the credit limit to the National Co-operative Marketing Federation?
(A)Reserve Bank of India
(B)Department of Agriculture
(C)NABARD
(D)Department of Finance
14.Which among the following body finalizes the market borrowing programs of State Governments in India?
(A)State Governments
(B)Reserve Bank of India
(C)Union Ministry of Finance
(D)Planning Commission
15.If there is an increase in the external commercial borrowings in India. What will be the impact on the external debt of the country?
(A)Increase
(B)Decrease
(C)Remain unaffected
(D)Either increase or decrease
16.Society for worldwide Inter-bank Financial Telecommunication or SWIFT enables member banks to send funds and statements to each other. In 1977, it was created under the law of which among the following countries?
(A)France
(B)Sweden
(C)Switzerland
(D)Belgium
17.Which among the following is correct about the Vostro Account?
(A)It is an account maintained by a foreign bank with a Bank in India in Indian Rupees.
(B)It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency.
(C)It is an account maintained by a Indian Bank Branch with a Foreign Bank in Foreign Currency.
(D)It is an account maintained by a Foreign Bank Branch with a Indian Bank in Foreign Currency.
18.Which among the following body promoted Securities Trading Corporation of India Limited (STCI) jointly with the Public Sector Banks?
(A)Securities Exchange Board of India
(B)Reserve Bank of India
(C)IDBI Ltd
(D)ICICI Ltd
19.Which among the following is the only correct statement?
(A)Money market meets long term financing needs
(B)Recession in industrial sector in India is normally due to fall in exports
(C)Ways and means advances is given by RBI are nowhere related to State's revenue
(D)Exchange rate is fixed by RBI
20.We read in the newspapers that the Foreign Direct Investments are preferred over the Capital Inflow. In this context, please consider the following :
1. FDI brings in latest technology
2. FDI does not involve large outflow
3. FDI Improves efficiency of the economy
Which among the above is / are most suitable reasons for the given statement?
(A)Only 1
(B)Only 1 & 3
(C)Only 1 & 2
(D)All 1, 2 & 3
21.Consider the following statements in context with Treasury Bills?
1. They are issued by Government of India on behalf of Reserve Bank of India
2. They are mostly for Short term borrowings
3. Treasury Bills can not be purchased by any person resident of India
Which among the above is / are correct ?
(A)All are correct
(B)2 & 3 are correct
(C)Only 2 is correct
(D)Only 3 is correct
22.Bring out the only incorrect statement:
(A)Reverse Repo operation by RBI aims at injecting/increasing liquidity
(B)SDR refers to special drawing rights
(C)Rupee appreciation results in decrease in imports
(D)Increase in inflation rate leads to decline in real interest rate
23.Consider the following statements:
1. Increase in deposit rate results in Higher savings
2. Increase in deposit rate results in fall in credit off takes
3. Increase in deposit rate results in increase in investment
Which among the above statements is / are correct?
(A)1 & 2
(B)1 & 3
(C)1, 2, 3
(D)Only 1
24.Which among the following correctly defines the Net Interest Income?
(A)Interest earned on advances
(B)Interest earned on investments
(C)Total interest earned on advances and investment
(D)Difference between interest earned and interest paid
25.In which among the following types comes the Interest Rate Risk?
(A)Credit risk
(B)Market risk
(C)Operational risk
(D)All the above categories
26.When there is an inflationary trend in the economy, what would be trend in the Pricing of the Bank Products?
(A)Increasing Trend
(B)Decreasing Trend
(C)Constant Trend
(D)There is no relevance of the inflation in pricing of the Banking Products
27.Which among the following is the correct character of the Foreign Exchange Markets?
(A)Foreign Exchange markets are localized markets
(B)Foreign Exchange markets operate within a country’s time zone
(C)Foreign Exchange markets are dynamic and round the clock markets
(D)Foreign Exchange markets are used only for trade related transactions
28.The currency market on a particular day is quoting USD/INR as 45.61/63. At what rate you could by USD?
(A)45.61
(B)45.62
(C)45.63
(D)45.64
29.From time to time, which among the following body publishes the "Exchange Control Manual" in context with the Foreign Exchange in India?
(A)Foreign Trade Promotion Board
(B)Department of Commerce
(C)Reserve Bank of India
(D)SEBI
30.What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents?
(A)Bill of Exchange
(B)Letter of Exchange
(C)Letter of Credit
(D)Bill of Entry
Answers:
1.(C) 6.(A) 11.(B) 16.(D) 21.(C) 26.(A)
2.(A) 7.(D) 12.(B) 17.(A) 22.(C) 27.(C)
3.(B) 8.(C) 13.(C) 18.(B) 23.(B) 28.(C)
4.(A) 9.(B) 14.(D) 19.(C) 24.(D) 29.(C)
5.(C) 10.(C) 15.(A) 20.(A) 25.(B) 30.(C)
Feb.2011 Part I
1.Many insurance companies now a days sell the unit linked plans that safeguard the investment of the customer from market fluctuations, so that investments are protected in financially volatile times. The return in these policies are based upon the highest NAV. What does the NAV refer to ?
(A)Nil Asset Variation
(B)Net Asset Variation
(C)Net Asset Value
(D)New Asset Value
2.Which among the following duties is applied by a Government to control the exports of a commodity, so that the commodity can be used by the local markets than in foreign countries?
(A)Custom Duty
(B)Excise Duty
(C)Anti Dumping Duty
(D)Dumping Duty
3.Many a times we read in the newspapers that the Government of India signs DTAA to broaden the scope of article of exchange of information to include exchange of banking information. What does the DTAA refers to here?
(A)Double Taxation Article Agreement
(B)Double Taxation Avoidance Agreements
(C)Double Taxation Avoidance Arrangements
(D)Dual Tax Agreement Arrangement
4.Which among the following gas is used as reference to calculate "Global Warming Potential (GWP)"?
(A)Carbon Dioxide
(B)Methane
(C)Ozone
(D)Nitrogen Di-oxide
5.Many a times we read in the newspapers that in India, while rice (non-basmati) exports are banned, basmati (an aromatic premium rice variety) can be exported without quantitative limits subject to a specified MEP. What does MEP stands for here?
(A)Modified Export Provisions
(B)Maximum Export Permission
(C)Minimum Export Price
(D)Maximum Export Price
6.Which among the following correctly define Pinaka?
(A)A Multi Barrel Rocket Launcher Developed by DRDO
(B)A Missile Developed by DRDO
(C)A Missile imported from Russia
(D)A rocket launcher developed by France
7.Which among the following decides the Oil Prices in India?
(A)Government of India
(B)Government of Respective States
(C)Ministry of Petroleum
(D)Oil Companies
8.We read in the various newspapers that during the period from June, 2009 to September, 2010, the Ministry of Road Transport and Highways has achieved a target of constructing on an average 12.01 km of National Highways per day. However, this achievement is shorter compared to the target of constructing 20 km of Highways per day. To achieve this target, it is essential that at any given point of time approximately __________ of works are under way. Which among the following fills the blank correctly?
(A)10000 Kilometers
(B)15000 Kilometers
(C)20,000 Kilometers
(D)25,000 Kilometers
9.The State Bank of India (Amendment) Bill-2010, which was passed in the parliament in the later half of 2010, apart from other things, reduces the statutory minimum shareholding of the Central Government in the bank from _____to ______%. Which among the following set of figures fills the blank correctly?
(A)59, 52
(B)55, 51
(C)59, 55
(D)62, 51
10.Many a times we read in the newspapers about a term "Core inflation". The Core inflation is different from the general inflation because of the following?
(A)Core Inflation is caused by the supply Shock in certain essential commodities
(B)Core Inflation is the sudden increase in certain items of food grains
(C)Core Inflation is the inflation rate of a particular basket of commodities
(D)Core Inflation is just a misnomer
11.Mutual Funds are regulated in India by which among the following?
(A)RBI
(B)SEBI
(C)Stock Exchanges
(D)RBI and SEBI both
12.Bring out the only incorrect statement:
(A)Liquidity Adjustment Facility operates through daily repo and reverse repo auctions
(B)National Housing Bank can lend money to small scale industries towards their working capital
(C)Board for financial supervision is empowered to supervise primary dealers in India
(D)Norms for classifying assets of banks into standard and sub-standard categories are prescribed by RBI
13.Which among the following body authorizes the credit limit to the National Co-operative Marketing Federation?
(A)Reserve Bank of India
(B)Department of Agriculture
(C)NABARD
(D)Department of Finance
14.Which among the following body finalizes the market borrowing programs of State Governments in India?
(A)State Governments
(B)Reserve Bank of India
(C)Union Ministry of Finance
(D)Planning Commission
15.If there is an increase in the external commercial borrowings in India. What will be the impact on the external debt of the country?
(A)Increase
(B)Decrease
(C)Remain unaffected
(D)Either increase or decrease
16.Society for worldwide Inter-bank Financial Telecommunication or SWIFT enables member banks to send funds and statements to each other. In 1977, it was created under the law of which among the following countries?
(A)France
(B)Sweden
(C)Switzerland
(D)Belgium
17.Which among the following is correct about the Vostro Account?
(A)It is an account maintained by a foreign bank with a Bank in India in Indian Rupees.
(B)It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency.
(C)It is an account maintained by a Indian Bank Branch with a Foreign Bank in Foreign Currency.
(D)It is an account maintained by a Foreign Bank Branch with a Indian Bank in Foreign Currency.
18.Which among the following body promoted Securities Trading Corporation of India Limited (STCI) jointly with the Public Sector Banks?
(A)Securities Exchange Board of India
(B)Reserve Bank of India
(C)IDBI Ltd
(D)ICICI Ltd
19.Which among the following is the only correct statement?
(A)Money market meets long term financing needs
(B)Recession in industrial sector in India is normally due to fall in exports
(C)Ways and means advances is given by RBI are nowhere related to State's revenue
(D)Exchange rate is fixed by RBI
20.We read in the newspapers that the Foreign Direct Investments are preferred over the Capital Inflow. In this context, please consider the following :
1. FDI brings in latest technology
2. FDI does not involve large outflow
3. FDI Improves efficiency of the economy
Which among the above is / are most suitable reasons for the given statement?
(A)Only 1
(B)Only 1 & 3
(C)Only 1 & 2
(D)All 1, 2 & 3
21.Consider the following statements in context with Treasury Bills?
1. They are issued by Government of India on behalf of Reserve Bank of India
2. They are mostly for Short term borrowings
3. Treasury Bills can not be purchased by any person resident of India
Which among the above is / are correct ?
(A)All are correct
(B)2 & 3 are correct
(C)Only 2 is correct
(D)Only 3 is correct
22.Bring out the only incorrect statement:
(A)Reverse Repo operation by RBI aims at injecting/increasing liquidity
(B)SDR refers to special drawing rights
(C)Rupee appreciation results in decrease in imports
(D)Increase in inflation rate leads to decline in real interest rate
23.Consider the following statements:
1. Increase in deposit rate results in Higher savings
2. Increase in deposit rate results in fall in credit off takes
3. Increase in deposit rate results in increase in investment
Which among the above statements is / are correct?
(A)1 & 2
(B)1 & 3
(C)1, 2, 3
(D)Only 1
24.Which among the following correctly defines the Net Interest Income?
(A)Interest earned on advances
(B)Interest earned on investments
(C)Total interest earned on advances and investment
(D)Difference between interest earned and interest paid
25.In which among the following types comes the Interest Rate Risk?
(A)Credit risk
(B)Market risk
(C)Operational risk
(D)All the above categories
26.When there is an inflationary trend in the economy, what would be trend in the Pricing of the Bank Products?
(A)Increasing Trend
(B)Decreasing Trend
(C)Constant Trend
(D)There is no relevance of the inflation in pricing of the Banking Products
27.Which among the following is the correct character of the Foreign Exchange Markets?
(A)Foreign Exchange markets are localized markets
(B)Foreign Exchange markets operate within a country’s time zone
(C)Foreign Exchange markets are dynamic and round the clock markets
(D)Foreign Exchange markets are used only for trade related transactions
28.The currency market on a particular day is quoting USD/INR as 45.61/63. At what rate you could by USD?
(A)45.61
(B)45.62
(C)45.63
(D)45.64
29.From time to time, which among the following body publishes the "Exchange Control Manual" in context with the Foreign Exchange in India?
(A)Foreign Trade Promotion Board
(B)Department of Commerce
(C)Reserve Bank of India
(D)SEBI
30.What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents?
(A)Bill of Exchange
(B)Letter of Exchange
(C)Letter of Credit
(D)Bill of Entry
Answers:
1.(C) 6.(A) 11.(B) 16.(D) 21.(C) 26.(A)
2.(A) 7.(D) 12.(B) 17.(A) 22.(C) 27.(C)
3.(B) 8.(C) 13.(C) 18.(B) 23.(B) 28.(C)
4.(A) 9.(B) 14.(D) 19.(C) 24.(D) 29.(C)
5.(C) 10.(C) 15.(A) 20.(A) 25.(B) 30.(C)
