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The origin of western type commercial Banking in India dates back to the 18th century. The story of banking starts from Bank of Hindusthanestablished in 1779 and it was first bank at Calcutta under European management. In 1786 General Bank of India was set up. Since Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, it became a banking center. Three Presidency banks were set up under charters from the British East India CompanyBank of Calcutta, Bank of Bombay and the Bank of Madras. These worked as quasi central banks in India for many years. The Bank of Calcutta established in 1806 immediately became Bank of Bengal. In 1921 these 3 banks merged with each other and Imperial Bank of India got birth. It is todays State Bank of India. The name was changed after Indias Independence in 1955. So State bank of India is the oldest Bank of India. In 1839, there was a fruitless effort by Indian merchants to establish a Bank called Union Bank. It failed within a decade. Next came Allahabad Bank which was established in 1865 and working even today. The oldest Public Sector Bank in India having branches all over India and serving the customers for the last 145 years is Allahabad Bank. Allahabad bank is also known as one of Indias Oldest Joint Stock Bank. The Oldest Joint Stock bank of India was Bank of Upper India established in 1863 and failed in 1913. The first Bank of India with Limited Liability to be managed by Indian Board was Oudh Commercial Bank. It was established in 1881 at Faizabad. This bank failed in 1958. The first bank purely managed by Indian was Punjab National Bank, established in Lahore in 1895. The Punjab national Bank has not only survived till date but also is one of the largest banks in India. However, the first Indian commercial bank which was wholly owned and managed by Indians was Central Bank of India which was established in 1911.

Central Bank of India was dreams come true of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the first Chairman of this Bank. Many more Indian banks were established between 1906-1911. This was the era of the Swadeshi Movement in India. Some of the banks are Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. Bank of India was the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974. The Bank was founded in September 1906 as a private entity and was nationalized in July 1969. Since the logo of this Bank is a star, its head office in Mumbai is located in Star House, Bandra East, Mumbai. There was a district in Todays Karnataka state called South Canara under the British empire. It was bifurcated in 1859 from Canara district , thus making Dakshina Kannada and Udupi district. It was the undivided Dakshina Kannada district. It was renamed as Dakshina Kannada in 1947. Four banks started operation during the period of Swadeshi Movement and so this was known as Cradle of Indian Banking. This was the first phase of Indian banking which was a very slow in development. This era saw many ups and downs in the banking scenario of the country. The Second Phase starts from 1935 when Reserve bank of India was established.

Between the period of 1911-1948, there were more than 1000 banks in India, almost all small banks. The Reserve Bank of India was constituted in 1934 as an apex Bank, however without major government ownership. Government of India came up with the Banking Companies Act 1949. This act was later changed to Banking Regulation (Amendment) Act 1949. The Banking Regulation (Amendment) Act of 1965 gave extensive powers to the Reserve Bank of India. The Reserve Bank of India was made the Central Banking Authority. The banking sector reforms started immediately after the independence. These reforms were basically aimed at improving the confidence level of the public as most banks were not trusted by the majority of the people. Instead, the deposits with the Postal department were considered safe.

Creation of Reserve bank of India: 1935 Nationalization of Reserve Bank of India : 1949 (January ) Enactment of Banking Regulation Act : 1949 (March) Nationalization of State Bank of India : 1955 Nationalization of SBI Subsidiaries : 1959 Nationalization of 14 major Banks : 1969 Creation of Credit Guarantee Corporation: 1971 Creation of Regional Rural Banks : 1975 Nationalization of 7 more banks with deposits over Rs. 200 Crore: 1980

First Narasimham Committee :


y Narasimham Committee I was formed in 1991 and Narasimham Committee II was formed in 1998 and both were related to Banking Sector Reforms. First Narasimham committee submitted its report in November 1991. It recommended the following: Reduction in the Statutory Liquidity Ratio Reduction in the Cash Reserve Ratio Interest rate in CRR Balances Redefining the priority sector Deregulation of the Interest Rates. Asset Classification and defining the Non Performing Assets. Improve transparency in the banking system Tribunals for recovery of Loans. Tackling doubtful debts Restructuring the banks Allow entry of the new private Banks Please note these memorable Points: The Narasimham Committee had recommended that the SLR should be reduced to 25% over the period of time.

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The Narasimham Committee recommended that CRR should be reduced to 10% over the period of time. The impact of reducing the CRR and SLR was that now more funds of the banks could be deployed to some more remunerative loan assets. The Narasimham Committee recommended that the Priority sector should be redefined and it should include the following: o Marginal farmers o Tiny sector o Small business and transport operators o Village and Cottage Industries Narasimham Committee recommended that there should be a target of 10% of the aggregate credit fixed for the Priority Sector at least. (discussed later) The result of the Narasimham committee led to some milestones in the banking sector reforms in India.

What is CRAR System?


CRAR is the acronym for capital to risk weighted assets ratio, a standard metric to measure balance sheet strength of banks. BASEL I and BASEL II are global capital adequacy rules that prescribe a minimum amount of capital a bank has to hold given the size of its risk weighted assets. The old rules mandate banks to back every Rs. 100 of commercial loans with Rs. 9 of capital irrespective of the nature of these loans. The new rules suggest the amount of capital needed depends on the credit rating of the customer.

What is Basel Committee on Banking Supervision?


Basel Committee on Banking Supervision is an institution of Governors of the Central Banks of G-10 nations and was formed in 1974. It has 27 members viz. Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. Out of them 12 are permanent members and its headquarters are located at Basel Switzerland. This Basel Committee on Banking Supervision works on strengthening the soundness and stability of the banking system, internationally. In July 1988, it had released the guidelines on Capital Measures and Capital standards, which were calledBasel-I. These guidelines were accepted by RBI also and were implemented w.e.f 1992. In June 2006, it again issued the revised guidelines which are called Basel II. In line with the Basel II, RBI had issued the detailed guidelines from 2007. At Present Basel III is under development.

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Slogans of major Banks in India


Hum Hai Na:ICICI

Good People To Grow With: Indian Overseas Bank With You All The Way:State Bank Of India Tradition Of Trust:Allahabad Bank Trusted Family Bank ena Bank Good People To Bank With:Union Bank Of India Worlds Local Bank:HSBC We Understand Your World:HDFC Much More To Do With YOU In Focus:Andhra Bank A Friend You Can Bank Upon:Vijaya Bank Together We Prosper:Bank Of Rajasthan Your Perfect Banking Partner:Federal Bank Taking Banking Technology To The Common Man:Indian Bank Experience Our Expertise:Yes Bank Build A Better Life Around Us:Central Bank Of India Serving To Empower:J & K Bank The Changing Face Of Prosperity:Lakshami Vilas Bank Where Every Individual Is Committed:Oreintal Bank Of Commerce Aao Soche Bada:IDBI A Faithful & Friendly Financial Partner:Syndicate Bank Relationships Beyond Banking:Bank Of India Honours Your Trust:Uco Bank Smart Way To Bank:Karur Vaisya Bank A Passion To Perform eutche Bank Experience Next Generation Banking:South Indian Bank The Name You Can Bank Upon unjab National Bank

List of Committees Related to Banking & Finance in India


A C Shah Committee:NBFC A Ghosh Committee:Final Accounts A Ghosh Committee:Modalities Of Implementation Of New 20 Point Programme A Ghosh Committee:Frauds & Malpractices In Banks Abid Hussain Committee:Development Of Capital Markets Adhyarjuna Committee:Changes In NI Act And Stamp Act AK Bhuchar Committee:Coordination Between Term Lending Institutions And Commercial Banks 8. B Eradi Committee:Insolvency And Wind Up Laws 9. B Sivaraman Committee:Institutional Credit For Agricultural & Rural Development 10. B Venkatappaiah Committee:All India Rural Credit Review 11. BD Shah Committee:Stock Lending Scheme 12. BD Thakar Committee:Job Criteria In Bank Loans (Approach) 13. Bhagwati Committee:Unemployment 14. Bhagwati Committee:Public Welfare 15. Bhave Committee:Share Transfer Reforms 16. Bhide Committee:Coordination Between Commercial Banks And SFCs 17. Bhootlingam Committee:Wage, Income & Prices 18. C Rao Committee:Agricultural Policy 19. CE Kamath Committee:Multi Agency Approach In Agricultural Finance 20. Chatalier Committee:Finance To Small Scale Industry 21. Chesi Committee:Direct Taxes 1. 2. 3. 4. 5. 6. 7.

22. Cook Committee (On Behalf Of BIS Under Basel Committee ):Capital Adequacy Of Banks 23. D R Mehta Committee:Review Progress And Recommend Improvement Measures Of IRDP 24. Damle Committee:MICR 25. Dandekar Committee:Regional Imbalances 26. Dantwala Committee:Estimation Of Employments 27. Dave Committee:Mutual Funds (Functioning) 28. Dharia Committee:Public Distribution System 29. DR Gadgil Committee:Agricultural Finance 30. Dutta Committee:Industrial Licensing 31. G Lakshmai Narayan Committee:Extension Of Credit Limits On Basis Of Consortium 32. G Sundaram Committee:Export Credit 33. Gadgil Committee (1969):Lead Banking System 34. Godwala Committee:Rural Finance 35. Goiporia Committee:Customer Service In Banks 36. GS Dahotre Committee:Credit Requirements Of Leasing Industry 37. GS Patel Committee:Carry Forward System On Stock Exchanges 38. Hathi Committee:Soiled Banknotes 39. Hazari Committee (1967):Industrial Policy 40. IT Vaz Committee:Working Capital Finance In Banks 41. J Reddy Committee:Reforms In Insurance Sector 42. James Raj Committee:Functioning Of Public Sector Banks 43. Jankiramanan Committee:Securities Transactions Of Banks & Financial Institutions 44. JV Shetty Committee:Consortium Advances 45. K Madhav Das Committee:Urban Cooperative Banks 46. Kalyansundaram Committee:Introduction Of Factoring Services In India 47. Kamath Committee:Education Loan Scheme 48. Karve Committee:Small Scale Industry 49. KB Chore Committee:To Review The Symbol Of Cash Credit Q 50. Khanna Committee:Non Performing Assets 51. Khusrau Committee:Agricultural Credit 52. KS Krishnaswamy Committee:Role Of Banks In Priority Sector And 20 Point Economic Programme 53. L K Jha Committee:Indirect Taxes 54. LC Gupta Committee:Financial Derivatives 55. Mahadevan Committee:Single Window System 56. Mahalanobis Committee:Income Distribution 57. Marathe Committee:Licensing Of New Banks 58. ML Dantwala Committee:Regional Rural Banks 59. Mrs. KS Shere Committee:Electronic Fund Transfer 60. Nadkarni Committee:Improved Procedures For Transactions In PSU Bonds And Units 61. Nariman Committee:Branch Expansion Programme 62. Narsimham Committee:Financial System 63. Omkar Goswami Committee:Industrial Sickness And Corporate Restructuring 64. P R Nayak Committee:Institutional Credit To SSI Sector 65. P Selvam Committee:Non Performing Assets Of Banks 66. PC Luther Committee:Productivity, Operational Efficiency & Profitability Of Banks 67. PD Ojha Committee:Service Area Approach 68. Pendarkar Committee:Review The System Of Inspection Of Commercial, RRB And Urban Cooperative Banks

69. Pillai Committee:Pay Scales Of Bank Officers 70. PL Tandon Committee:Export Strategy 71. PR Khanna Committee:Develop Appropriate Supervisory Framework For NBFC 72. Purshottam Das Committee:Agricultural Finance And Cooperative Societies 73. R Jilani Banks:Inspection System Of Banks 74. R S Saria Committee:Agricultural Finance And Cooperative Societies 75. Raghavan Committee:Competition Law 76. Raja Chelliah Committee:Tax Reforms 77. Rajamannar Committee:Centre State Fiscal Relationships 78. Rajamannar Committee:Changes In Banking Laws , Bouncing Of Cheques Etc. 79. Rakesh Mohan Committee:Petro Chemical Sector 80. Ram Niwas Mirdha Committee (JPC):Securities Scam 81. Rangrajan Committee:Computerization Of Banking Industry 82. Rangrajan Committee:Public Sector Disinvestment 83. Rashid Jilani Committee:Cash Credit System 84. Ray Committee:Industrial Sickness 85. RG Saraiya Committee (1972):Banking Commission 86. RH Khan Committee:Harmonization Of Banks And Ssis 87. RK Hajare Committee:Differential Interest Rates Scheme 88. RK Talwar Committee:Customer Service 89. RK Talwar Committee:Enactment Having A Bearing On Agro Landings By Commercial Banks 90. RN Malhotra Committee:Reforms In Insurance Sector 91. RN Mirdha Committee:Cooperative Societies 92. RV Gupta Committee:Agricultural Credit Delivery 93. S Padmanabhan Committee:Onsite Supervision Function Of Banks 94. S Padmanabhan Committee:Inspection Of Banks (By RBI) 95. Samal Committee:Rural Credit 96. SC Choksi Committee:Direct Tax Law 97. Shankar Lal Gauri Committee:Agricultural Marketing 98. SK Kalia Committee:Role Of NGO And SHG In Credit 99. SL Kapoor Committee:Institutional Credit To SSI 100. Sodhani Committee:Foreign Exchange Markets In NRI Investment In India 101. SS Kohli Committee:Rehabilitation Of Sick Industrial Units 102. SS Kohli Committee:Rationalization Of Staff Strength In Banks 103. SS Kohli Committee:Willful Defaulters 104. SS Nadkarni Committee:Trading In Public Sector Banks 105. SS Tarapore Committee:Capital Account Convertibility 106. Sukhmoy Chakravarty Committee:To Review The Working Of Monetary System 107. Tambe Committee:Term Loans To SSI 108. Tandon Committee:Follow Up Of Bank Credit 109. Tandon Committee:Industrial Sickness 110. Thakkar Committee:Credit Schemes To Self Employed 111. Thingalaya Committee:Restructuring Of RRB 112. Tiwari Committee:Rehabilitation Of Sick Industrial Undertakings 113. UK Sharma Committee:Lead Bank Scheme (Review) 114. Usha Thorat Panel: Financial Inclusion 115. Vaghul Committee:Mutual Fund Scheme 116. Varshney Committee:Revised Methods For Loans (>2 Lakhs) 117. Venketaiya Committee:Review Of Rural Financing System

118. Vipin Malik Committee:Consolidated Accounting By Banks 119. VT Dehejia Committee:To Study Credit Needs Of Industry And Trade Likely To Be Inflated 120. Vyas Committee:Rural Credit 121. Wanchoo Committee:Direct Taxes 122. WS Saraf Committee:Technology Issues In Banking Industry 123. Y H Malegam Committee:Disclosure Norms For Public Issues 124. YV Reddy Committee:Reforms In Small Savings Some Recent Working Groups & Committees by RBI & Their Focus Area: (Name of Chairmen is given) 1. Working Group on Benchmark Prime Lending Rate (BPLR): Deepak Mohanty 2. Working Group on Surveys: Deepak Mohanty 3. High Level Committee to Review Lead Bank Scheme: Usha Thorat 4. Working Group to Review the Business Correspondent Model: P Vijaya Bhaskar Rao 5. High Level Group on Systems and Procedures for Currency Distribution: Usha Thorat 6. G20 Working Group on Enhancing Sound Regulation and Strengthening Transparency: Dr. Rakesh Mohan and Mr. Tiff Macklem 7. Committee on Financial Sector Assessment: Dr. Rakesh Mohan 8. High Level Committee on Estimation of Savings and Investment: Dr. C. Rangarajan 9. Committee on the Global Financial System (CGFS) on Capital Flows and Emerging Market Economies: Dr. Rakesh Mohan 10. Task Force For Diamond Sector: A K Bera 11. Technical Advisory Group on Development of Housing Start-Up Index in India: Prof. Amitabh Kundu 12. Working Group on Defraying Cost of ICT Solutions for RRBs: Shri G. Padmanabhan 13. Working Group on IT support for Urban Cooperative Banks: R Gandhi 14. Working Group on Technology Upgradation of Regional Rural Banks: Shri G. Srinivasan 15. Interest Rate Futures: Shri V.K. Sharma 16. Internal Working Group to Study the Recommendations of the NCEUS Report: KUB Rao 17. Working Group on Improvement of Banking Services in the Union Territory of Lakshadweep: S. Ramaswamy 18. Working Group on Rehabilitation of Sick SMEs: Dr. K. C. Chakrabarty 19. Working Group on Improvement of Banking Services In Jharkhand: V.S.Das 20. Working Group on Improvement of Banking Services in Himachal Pradesh: Dr. J. Sadakkadulla 21. Internal Technical Group on Seasonal Movements in Inflation: Dr. Balvant Singh 22. Working Group to Examine the Procedures and Processes of Agricultural Loans: C P Swarankar 23. Task Force on Empowering RRB Boards for Operational EfficiencyDr. K.G. Karmakar 24. Technical Group Set up to Review Legislations on Money Lending: Shri.S. C. Gupta 25. Working Group To Suggest Measures To Assist Distressed Farmers: Shri. S. S. Johl 26. Technical Group on Statistics for International Trade in Banking Services: Shri K.S.R.Rao 27. Technical Advisory Group On Development Of Leading Economic Indicators For Indian EconomyDr. R B Barman 28. Working Group on Savings for the Eleventh Five Year Plan (2007-08 to 2011-12): Dr.Rakesh Mohan 29. Working Group on Compilation of State Government Liabilities: Dr. N.D. Jadhav 30. Working Group on Improvement of Banking Services in Uttaranchal: V.S. Das 31. Working Group on Cost of NRI Remittances: P. K. Pain 32. Working group to formulate a scheme for Ensuring Reasonableness of Bank Charges: N. Sadasivam

33. Committee on Fuller Capital Account Convertibility: S.S.Tarapore 34. Committee on Financial Sector Plan for North Eastern Region: Smt. Usha Thorat 35. Survey on Impact of Trade Related Measures on Transaction Costs of Exports: Balwant Singh 36. Advisory Committee on Ways and Means Advances to State Governments: M.P.Bezbaruah 37. Need and Use Behavior for Small Denomination Coins: Sanal Kumar Velayudhan 38. Debt Sustainability at State Level in India: Indira Rajaraman, Shashank Bhide and R.K.Pattnaik 39. Internal Group to Examine Issues Relating to Rural Credit and Microfinance: Shri H.R.Khan 40. Working Group to Review Export Credit: Shri Anand Sinha 41. Internal Working Group on RRBs: Shri A V Sardesai 42. Working Group on Warehouse Receipts and Commodity Futures: Shri Prashant Saran 43. Internal Group to Review Guidelines on Credit Flow to SME Sector: Shri C.S.Murthy 44. Working Group on Regulatory Mechanism for Cards Shri R.Gandhi 45. Group on Model Fiscal Responsibility Legislation at State Level: Shri H R Khan 46. Task Force on Revival of Cooperative Credit Institutions: Prof.A.Vaidyanathan 47. Special Group for Formulation of Debt Restructuring Mechanism for Medium Enterprises: Shri G.Srinivasan 48. Working Group on Screen Based Trading In Government Securities: Dr.R.H.Patil 49. Expert Group on Internet Deployment of Central Database Management System (CDBMS): Prof.A.Vaidyanathan 50. Report on Monitoring of Financial Conglomerates: Smt.Shyamala Gopinath 51. Working Group on Development Financial Institutions: Shri N. Sadasivan 52. Advisory Committee to Advise on the Administered Interest Rates and Rationalisation of Saving Instruments: Dr.Rakesh Mohan 53. Advisory Committee on Flow of Credit to Agriculture: Prof.V.S.Vyas 54. Working Group on Flow of Credit to SSI Sector: Dr.A.S.Ganguly 55. Group to Study the Pension Liabilities of the State Governments: B. K. Bhattacharya 56. Rupee Interest Rate Derivatives: Shri G. Padmanabhan 57. Working Group on Instruments of Sterilisation: Smt. Usha Thorat 58. Working Group on Information on State Government Guaranteed Advances and Bonds: Shri.G.Padmanabhan 59. Working Group on Cheque Truncation and E-cheques: Dr.Barman, ED 60. Working Group on Introduction of Credit Derivatives in India: Shri B. Mahapatra 61. Group to Assess the Fiscal Risk of State Government Guarantees: Smt. Usha Thorat 62. Advisory Committee on Ways and Means Advances to State Governments: Shri C.Ramachandran 63. Working Group on Rupee Derivatives: Shri Jaspal Bindra 64. Committee on Computer Audit: Shri A.L. Narasimhan 65. Committee on Payment Systems: Dr R H Patil 66. Review Group on The Working of The Local Area Bank SchemeShri G.Ramachandran 67. Technical Group on Statistics of International Trade in Services: Shri Deepak Mohanty 68. Working Group for Suggesting Operational and Prudential Guidelines on STRIPS (Separately Traded Registered Interest and Principal of Securities): Shri M.R.Ramesh 69. Working Group on Electronic Money: Mr.Zarir J. Cama 70. Working Group on Economic Indicators Dr. R.B. Barman 71. Working Group to Examine the Role of Credit Information Bureaus in Collection and Dissemination of Information on Suit-filed Accounts and Defaulters: Shri S.R. Iyer 72. Information systems audit policy for the banking and financial sector: Dr. R.B.Burman

73. Working Group on Consolidated Accounting and Other Quantitative Methods to Facilitate Consolidated Supervision: Shri Vipin Malik 74. Expert Committee to Review the System of Administered Interest Rates and Other Related Issues: Dr.Y.V. Reddy 75. Inter-Departmental Group to study the Rationalisation of Current account Facility with Reserve Bank of India: Shri K.W. Korgaonkar 76. The Expert Committee on Legal Aspects of Bank Frauds: Dr.N.L. Mitra 77. The Standing Committee on International Financial Standards and Codes Standing Committee on International Financial Standards and Codes: Dr. Y.V.Reddy 78. Technical Group on Market Integrity: Shri C.R. Muralidharan 79. Technical Group on Phasing Out of Non-banks from Call/Notice Money Market (March 2001): Dr.Y.V.Reddy 80. Core Group on Voluntary Disclosure Norms for State Governments: Dr.Y.V.Reddy 81. Task Force to Study the Cooperative Credit System and Suggest Measures for its Strengthening: Shri Jagdish Kapoor 82. Internal Group to Review the Guidelines Relating to Commercial Paper: Dr.Y.V.Reddy 83. High Power Committee on Urban Cooperative Banks: Shri Madhav Rao 84. Working Group for setting up Credit Information Bureau in India: Shri N.H.Siddiqui 85. Committee for Redesigning of Financial Statements of Non-Banking Financial Companies: Shri V.S.N. Murthy 86. Working Group on Restructuring Weak Public Sector Banks: Shri M.S.Verma Working Group for Working Out Modalities on Dissemination of Information in Electronic Form: Shri Y.S.P. Thorat and Shri C.R. Gopalasundaram 87. Committee on Technology Upgradation in the Banking Sector: Dr A.Vasudevan 88. Working Group of EURO: Shri V.Subrahmanyam 89. New Monetary Aggregates: Dr. Y.V. Reddy 90. Committee on Capital Account Convertibility: Shri S.S.Tarapore

What is SCARDB?
State Cooperative Agriculture and Rural Development Banks (SCARDB) is a Central Sector Scheme of India which aims at raising resources of SLDBs(State Land Development Banks ) for long term lending to cultivators by way of floatation of debentures in vital areas such as Minor Irrigation, Farm Mechanization, Land Development, Horticulture, Wasteland Development, Rural Housing, Rural Godowns, Non-Farm Sector and Animal Husbandry. Under this scheme the SLDBs/SCARDBs raise resources for long term lending to cultivators by floatation of debentures in vital areas like Farm Mechanisation, Land Development etc. The debentures floated by the Banks are subscribed by NABARD, the concerned State Governments, Government of India and other

Three Pillars of Basel III


The Basel III Guidelines are based upon 3 very important aspects which are called 3 pillars of the Basel II. These 3 pillars are as follows: Minimum Capital Requirement Supervisory review Process Market Discipline First Pillar: Minimum Capital Requirement

The first pillar Minimum Capital Requirement has been discussed above. This mainly for total risk including the credit risk, market risk as well as Operational Risk . Second Pillar: Supervisory Review Process The second pillar i.e. Supervisory Review Process is basically intended to ensure that the banks have adequate capital to support all the risks associated in their businesses. In India , the RBI has issued the guidelines to the banks that they should have an internal supervisory process which is called ICAAP or Internal Capital Adequacy Assessment Process. With this tool the banks can assess the capital adequacy in relation to their risk profiles as well as adopt strategies for maintaining the capital levels. Apart from that, there is another process stipulated by RBI which is actually the Independent assessment of the ICAAP of the Banks. This is called SREP or Supervisory Review and Evaluation Process. The independent review and evaluation may suggest prudent measures and supervisory actions whatever is needed. ICAAP is conducted by Banks themselves and SREP is conducted RBI which is along with the RBIs Annual Financial Inspection (AFI) of the bank. Third Pillar: Market Discipline The idea of the third pillar is to complement the first and second pillar. This is basically a discipline followed by the bank such as disclosing its capital structure, tier-I and Tier II Capital and approaches to assess the capital adequacy. In the above discussion, we could understand that the Basel II and forthcoming Basel III are basically guidelines which focus upon adequate capital in the banks and minimize the risk to the customers or depositors. The idea is to make a sound financial system which not only helps the banks and but the entire economy of the country to maintain the trust and faith, as transparency in the business. The centerpieces are Capital Adequacy and Risks.

Functions of RBI
The RBI established by RBI Act 1934 in 1935 and nationalized in 1949 is the central banking and monetary authority of India. It acts as a regulator and supervisor of the Banks. Every country has its own central bank such as Federal Reserve of United States. Please note that most of the central banks of the world were established during the early 20th century and RBI was one of them. Following is the list of the establishment of some of the major banks in the world. Federal Reserve Bank of United States was established via Federal Reserve Act 1913 Bank of England is the oldest established central bank among the major countries. It was established in 1694 as a private entity and remained so till 1946 when it was nationalized. The central Bank of China is Peoples Bank of China and it was established in 1948 One more older bank is Banque de France , the central Bank of France which was established in 1800. Following are major functions of RBI: Currency authority Control of Money supply and credit Management of Forex As banker to the government Maintenance of Indias financial infrastructure Banker of the banks Supervision of the Banks. In the commercial Banking system, the two functions of RBI viz. Banker of the Banks and Supervision are very important. As the Bankers Bank , RBI carries out the following functions:

Holds a part of the Cash Reserves of the banks Short term lending Centralized clearing facilities. LORL: RBI is known as Lender of Last Resort because, banks are supposed to meet their shortfalls of cash from other sources and if the other sources dont meet the demand, then they approach RBI. CRR: CRR is Cash Reserve Ratio , the share of the liquid cash that the banks have to keep with the RBI. Current CRR 6%. Supervisory Functions: These functions are related to banking license, branch expansion, liquidity, management and working methods, amalgamation, reconstruction and liquidation.

Objectives of RBI s Monetary Policy


Objectives of the monetary policy in India have gone through a process of gradual evolution and have included price stability, ensuring adequate flow of credit to various productive sectors of the economy and achieving financial stability. The policy stance is based upon the assessment of the macroeconomic and financial conditions and monetary measures. The statements reflect the changing circumstances and priorities of the RBI and a thrust for the future. Reserve Bank of India announces Monetary Policy every year in the Month of April. This is followed by three quarterly Reviews in July, October and January. But, RBI at its discretion can announce the measures at any point of time. The Annual Monetary Policy is made up of two parts Part A: macroeconomic and monetary developments Part B: Actions taken and fresh policy measures. Monetary policy of the RBI deals with almost all other vital topics such as financial stability, financial markets, interest rates, credit delivery, regulatory norms, financial inclusion and institutional developments etc.

NARROW BANKING
In India, the concept of narrow banking came into discussion after submission of the report by the Committee on Capital Account Convertibility (Tarapore Committee). It was suggested as a solution to the problem of high NPAs and related matters. The Committee proposed that incremental resources of these narrow banks should be restricted only to investments in govt. securities. What is narrow banking ? A Narrow Bank in its narrow sense, can be defined as the system of banking under which a bank places its funds in risk-free assets with maturity period matching its liability maturity profile, so that there is no problem relating to asset liability mismatch and the quality of assets remains intact without leading to emergence of sub-standard assets. What are advantages : Such an approach can ensure the regular deployment of funds in low risk liquid assets. With such pattern of deployment of funds, these banks are expected to remove the problems of bank failures and the consequent systemic risks and loss to depositors. What is status of narrow banking in India ? The concept is practically being implemented by the Indian banking system partly, as a large part of the deposits mobilised (i.e. more than 46%) by the banks, has been deployed in Govt. securities (against a prescription of 25% in the form of SLR) as it provides a safe avenue of investment but at a very low return. This keeps the level of non-performing assets (rather than advances) low and the requirement of capital adequacy ratio also low, as the risk weight allotted to such securities is only 2.5% compared to 100% in loan assets

S.K.S ? S.K.S is a non-banking finance company (NBFC), regulated by the Reserve Bank of India. SKS claims its mission is to eradicate poverty by providing financial services to the poor.

what is Offshore Banking?


An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction (or tax haven) that provides financial and legal advantages. These advantages typically include: greater privacy (see also bank secrecy, a principle born with the 1934 Swiss Banking Act) low or no taxation (i.e. tax havens) easy access to deposits (at least in terms of regulation) protection against local political or financial instability

   

1. Paying for facilities like issuance of demand drafts, cheque books, credit or debit cards and ATM interchange may soon become pass as public sector lender ____ waived all service charges on current and savings accounts (CASA), the first by any bank. The move is aimed at increasing the banks below-industry average CASA deposits and the bank expects to double its retail account to 1 crore in the next 12 months. a) SBI b) PNB c) Canara Bank d) IDBI Bank e) None of these 2. At present, how many families are categorized as BPL? a) 5.10 cr b) 6.52 cr c) 7.81 cr d) 10.40 cr e) None of these 3. DTC stands for a) Direct Tax Code b) Disinvestment Tax Code c) Derivative Trade Code d) Distinct Tax Code e) Delhi Tax Code 4. In a surprise move and to the disappointment of taxpayers, the government on Aug 30 deferred the implementation of the Direct Taxes Code (DTC) by a year to ___, 2012 and sough to waive the preferential treatment to woman in tax payment in the name of gender equity. a) Jan 1 b) Mar 31 c) Apr 1 d) Dec 31 e) None of these 5. Which of the following statement is/are true about Direct Taxes Code (DTC)? A) Under the Direct Taxes Code Bill, 2010 tabled in the Lok Sabha by finance minister Pranab Mukherjee and referred to the Select Committee of Parliament for scrutiny the government has sought to raise the income tax exemption limit from Rs.1.6 Lakh to Rs.2 Lakh while retaining a host of incentives for individuals. B) While senior citizens (above 65 years) will enjoy a higher exemption of Rs.2.5 Lakh, woman taxpayers will have no additional relief as they have not been categorized separately. C) As for corporate taxes, the levy will be at a flat rate of 30 per cent with no surcharges or cesses. The minimum alternate tax (MAT)will be levied on book profits at 20 per cent. a) Only A b) Only A& B c) Only B&C d) All the above e) None of these 6. Name the country with India has signed a protocol to the Double Taxation Avoidance Agreement that would the wealth illegally stashed away in banks. a) Britain b) US c) Switzerland d) France e) None of these 7. In a major step to alleviate delays in wage payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which state govt has launched an e-Shakti Financial Inclusion scheme, the first of its kind in the country? a) UP b) MP c) Bihar d) Maharashtra e) None of these 8. Name the bank whose chairman Stephan K Green will be appointed as the minister of state for trade and investment.

a) HSBC Holdings b) Standard Chartered Bank c) Barclays Bank d) Royal Bank of Scotland e) None of these 9. In a big boost to the disinvestment programme of the UPA-II Government, the Petroleum and Natural Gas Ministry gave its green signal to the sale of governments stake in Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), a move aimed at raising around __________ this fiscal. a) Rs. 14,000 cr b) Rs.18,000 cr c) Rs.24,000 cr d) Rs. 30,000 cr e) None of these 10. With a net worth of US$62 billion, Mukesh Ambani would be the richest man of earth in ___________, going past the current claimant, Mexican businessman Carlos Slim, according to a forecast by Forbes. a) 2012 b) 2014 c) 2016 d) 2018 e) None of these 11. In one of his speeches Pranab Mukherjee said that the Govt had no plans to dilute the roles of market regulators. This means the role of which of the following will not be diluted? a) Life Insurance Corporation of India (LIC) b) Confederation of Indian Industry (CII) c) Federation of Chambers of Commerce & Industry (FICCI) d) Bureau of Indian Standards e) Securities & Exchange Board of India (SEBI) 12. What is the full form of ULIP , the term which was in the news recently? a) Universal Life & Investment Plan b) Unit Loan & Insurance Plan c) Universal Loan & Investment Plan d) Uniformly Loaded Investment Plan e) Unit Linked Insurance Plan 13. As per the news published in some major financial news papers, the Maharashtra Govt is planning to introduce Green Tax on Vehicles. What is the Purpose of Green Tax? a) It has been introduced with the aim of discouraging high consumption of petroleum products. b) It is a tax levied by the Govt in place of VAT as VAT is not very profitable for State Govts. c) It is just like a toll tax which will be charges from all the vehicles whenever they enter green areas of a city like hospitals, schools, and old-age homes. d) This is a tax levied on big commercial vehicles only with the aim of prohibiting them from entering residential areas and non-commercial areas. e) None of these 14. Very often we read in newspapers about 3 G Third Generation Technology. This is a set of standards used by which of the following? a) To Combat climatic changes b) Production of nuclear energy c) Film production d) Mobile telecommunications e) All of these 15. Which of the following companies is NOT in the field of insurance business? a) ICICI Prudential b) Bajaj Allianz c) Tata AIG d) Aegon Religare e) Royal Orchild 16. Many times we read that a corporate entity is in the process of raising its capital base. Why is a company required to raise money to strengthen its capital base? A) To finance its diversification Plans B) To finance its diversification plans C) To repay its loans and borrowings a) Only A b) Only B c) Only C d) Only A & B e) All A, B&C 17. Many times we read in newspapers that a company is planning to bring a public issue. What does it mean? A) Shares of the company will be issued only through public sector organizations like banks/Central financial institutions etc. B) Shares of the company will be issued to general public only through primary market. C) This means some stakeholders/ promoters are willing to leave the company. Hence they wish to sell their stock to the general public. a) Only A b) Only B c) Only C d) All A,B&C e) None of these

18. Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard? A) Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them. B) Maintaining account books for them for their day-to- day activities so that they are not required to appoint account/finance personnel on a regular basis. C) Lending money by way of overdraft, installment loan, credit or advance for business activities a) Only A b) Only B c) Only C d) Only A&C e) All of these 19. As we all have noticed, banks these days are giving more emphasis on Branchless Banking. What does this really mean? A) Banks will not have many branches as used to be in the good old days. Instead, the number of branches will be restricted and will conduct only a specified core business. B) Banks will launch/operate many delivery channels like ATMs, Mobile Banking/ Internet Banking etc sot that people are not required to visit a branch for their usual banking needs. C) This means banks will issue only debit or credit cards for all types of day-to-day financial transactions. Cheques/cash payments will not be allowed. a) Only A b) Only B c) Only A&B d) Only B&C e) All A, B&C 20. Which of the following is NOT a function of a bank? a) Providing project finance b) Selling Mutual Funds c) Deciding policy rates like CRR, Repo Rate / SLR etc d) Settlement of payments of behalf of the customers e) All of these are functions of a bank 21. Which of the following is a form of savings Bank popular among the poor or children? a) Core Banking b) Credit Banking c) Debit Card d) Merchant Banking e) Piggy Banking 22. Dr. Amartya Sen is a famous a) Physicist b) Chemical Engineer c) Psychologist e) Economist e) None of these 23. Which of the following nations is considered the originator of the concept of Micro Finance? a) India b) Bangladesh c) South Africa d) USA e) None of these 24. Govt normally does not announce the Minimum Support Price (MSP) of a) Wheat b) Paddy c) Sugarcane d) Jute e) All of these 25. At present Dr.D Subbarao is the a) Governor of Orissa b) Deputy Chairman of the Planning Commission c) Chairman of the FICCI d) Indias Representative in IMF e) None of these 26. Banks borrow money from the RBI on which of the following rates? a) Bank rate b) CRR c) SLR d) Reverse Repo Rate e) Repo Rate 27. Which of the following is NOT a part of Indias Money Market? a) Bill Market b) Call Money Market c) Banks d) Mutual Funds e) Indian Gold Council 28. Which of the following is/are NOT the feature(s) of Indias Foreign Trade Policy (2004 to 2009)? A) To double Indias percent age share of global trade from present 0.7 per cent to 1.5 per cent by 2009 B) Simplifying the procedures and bringing down the cost C) Make SAARC countries Indias most preferred foreign trade partners by 2009 a) Only I b) Only II c) Only III d) All I, II and III e) Only I and III 29. Which of the following is /are the measure(s) taken by the Reserve Bank of India (RBI) to ease the liquidity crunch in the country? A) Cut in Cash Reserve Ratio and Statutory Liquidity Ratio. B) Increase the flow of foreign direct investment

C) Supply of additional currency notes in the market. a) Only I b) Only II c) Only III d) All I, II and III e) None of these 30. Which of the following services is NOT provided by the post offices of India? a) Savings Bank Scheme b) Retailing of Mutual Funds c) Sale of Stamp Papers (Judicial) d) Issuance of Demand Drafts e) Life Insurance Cover 31. Which of the following is true of New Lending Rate System in Banks? a) For existing loans, the base rate would be applicable once they matured. b) For new loans, the base rate would be levied immediately. c) Banks can not charge customers any fee for such switch-over. d) All of these e) None of these 32. According to recently released RBI data on the Balance of Payment, net portfolio investments into country during April- December amounted to a) $ 23.6 billion b) $ 30.4 billion c) $ 32.8 billion] d) $ 36.6 billion e) $ 40.4 billion 33. Which of the following is NOT a Government sponsored organization? a) Small Industries Development Bank of India b) NABARD c) National Housing Bank d) ICICI Bank e) All are government sponsored 34. The Reserve Bank has constituted a working group to review the current operating procedure of monetary policy, as transmission of the policy to the rest of the system remains imperfect. The group, to be headed by RBI executive director ___________, will also review the liquidity adjustment facility (LAF), through which the central bank manages money supply in the system on a day-to-day basis. a) Usha Thorat b) Deepak Mohanty c) Rakesh Mohan d) Naresh Chandra e) None of these 35. SEBI was established in a) 1993 b) 1992 c) 1988 d) 1990 e) None of these 36. The working of SEBI includes: a) To regulate the dealings of share market b) To check the foul dealings in share market c) To control the inside trading of shares d) All of these e) None of these 37. The Ad hoc Treasury Bill a system of meeting budget deficit in India was replaced by a system which came into force on a) March 31,1997 b) April 1,1996 c) April 1,1997 d) March 31, 1996 e) None of these 38. The recommendations of the 13th Finance Commission has become/will be operational during the period a) 2009-14 b) 2010 15 c) 2011 16 d) 2012 2017 e) None of these 39. Rural Woman can avail the benefit of Mahila Samriddhi Yojana if they open their account in a) Rural Pot Offices b) Commercial Banks c) Rural Development Bank d) Any of the above e) None of these 40. The rate at which banks lend to RBI is known as a) Bank Rate b) Repo Rate c) Reverse Repo Rate d) Interest Rate e) None of these 41. The cause of deflation is a) Lack of goods and services as compared to money supply b) Lack of imports as compared to exports c) Lack of money supply as compared to supply of goods and services d) Lack of money supply and goods e) None of these

42. Which bank in India performs the duties of the central bank? a) Central Bank of India b) State Bank of India c) Reserve Bank of India d) Bank of India e) None of these 43. Mixed Economy means a) Co-existence of small and large industries b) Promoting both Agriculture and Industries in the economy c) Co-existence of public and private sectors d) Co-existence of the rich and the poor e) None of these 44. Pure Banking, Northing Else is a slogan raised by a) ICICI Bank b) HDFC Bank c) SBI d) UTI Bank e) None of these 45. Which of the following is true about Swavalamban Scheme? A) Finance minister Pranab Mukherjee will launch the Swavalamban scheme in Murshidabad district of West Bengal. B) As per the scheme, the Centre will contribute Rs.1,000 a year to each New Pension Scheme (NPS) account opened in the current year. C) The contribution will be made till 2013 14. D) To be eligible, a person will have to make a minimum contribution of Rs.1,000 and maximum contribution of Rs.12,000 per annum. a) Only A,B & C b) Only A, C & D c) Only A & D d) All the above e) None of these 46. The axe finally fell on Asias first cooperative bank, ___________, when the Reserve Bank of India (RBI) cancelled its licence and asked it not to continue any banking related transactions until further directions. a) Saraswat Co-operative Bank Ltd b) Cosmos Co-operative Bank Ltd c) Nadar Co-operative Bank Ltd d) Anyonya Cooperative Bank Ltd e) None of these 47. 13th Finance Commission was constituted under the Chairmanship of a) YSP Thorat b) Vijai L Kelkar c) TS Vijayan d) Laxmi Narayan e) None of these 48. SEBI is a a) Statutory body b) Advisory body c) Constitutional body d) Non-statutory body e) None of these 49. Bank Cash Transaction Tax (BCTT) was withdrawn with effect from a) January 1, 2009 b) March 1, 2009 c) March 31, 2009 d) April 1, 2009 e) None of these 50. Which committee recommended abolition of tax rebates under Section 88? a) Chelliah Committee b) Kelkar Committee c) Shome Committee d) Naresh Chandra Committee e) None of these ANSWERS

1.D 2.B 3.A 4.C 5.D 6.C 7.C 8.A 9.C 10.B 11.E 12.E 13.E 14.D 15.E 16.A 17.B 18.D 19.E 20.C 21.E 22.D 23.B 24.D 25.E 26.E 27.E 28.D 29.A 30.E 31.D 32.C 33.D 34.B 35.C 36.D 37.C 38.B 39.A 40.C 41.C 42.C 43.C 44.C 45.D 46.D 47.B 48.A 49.D 50.B

1. Tarapore Committee submitted its report on Full Convertibility on Rupee in a) Current account b) Capital account c) Both on current as well as on capital account d) Special Drawing Rights (SDRs) e) None of these 2. CENVAT is related to a) Sales Tax b) Excise Duty c) Custom Duty d) Service Tax e) None of these 3. NABARD was established on the recommendation of a) Public Accounts Committee b) Shivaraman Committee c) Narasimham Committee d) Khandelwal Committee e) None of these

4. Sampurna Gramin Rozgar Yojana has been launched from a) 1 Apr 2001 b) 25 Sep 2001 c) 30 Sep 2001 d) No scheme of such title has yet been launched e) None of these 5. VAT is imposed a) Directly on the consumer b) On the final stage of production c) On the first stage of production d) On all stages between production and final sale e) None of these 6. Kutir Jyoti scheme is associate with a) Promoting cottage industry in villages b) Promoting employment among rural unemployed youth c) Providing electricity to rural families living below the poverty line d) All of these e) None of these 7. CAPART is related with a) Assisting and evaluating rural welfare programmes b) Computer hardware c) Consultant service of export promotion. d) Controlling pollution in big industries e) None of these 8. The note issuing dept of RBI should always possess a minimum gold stock worth a) Rs.85 crore b) Rs.115 crore c) Rs.200 crore e) Rs.215 crore e) None of these 9. We very frequently read about Europes sovereign debt crisis these days. Which of the following statements/is/are true about the same? A) In early 2010 the Euro Crisis developed in some countries like Greece, Spain and Portugal. B) This created a credit default swap between the countries of the European Union. C) SAARC countries have offered some assistance to some of the severely affected countries like Portugal, Spain and Greece. a) Only A b) Only B c) Only A&B d) All A, B&C e) None of these 10. As we al know, the RBI raised the Cash Reserve Ratio (CRR) by 25 bps in April 2010. What action will banks will have to take to implement the same? A) They will have to deposit some more money with the RBI as reserved money. B) Banks will be required to give some more loan to projects of the priority sector. C) Banks will be required to give loan equivalent to the CRR to the Govt of India for its day-to-day expenditure as and when required. a) Only A b) Only B c) Only C d) Only A&B e) All A,B&C 11. As per estimates given by the RBI, the Economic Growth during the year 2010-11 will be at which of the following levels? a) 6.5% b) 7% c) 7.5% d) 8% e) None of these 12. Which of the following is/are correct about the RBIs credit policy announced in April 2010? A) Repo Rate raised by 25 bps B) A new reporting platform was introduced for secondary market transactions in Certificates of Deposits (CDs) and Commercial Papers. (CPs). C) Core Investment Companies (CICs) having an asset size of Rs.100 crore are required to register also with the RBI. a) Only A b) Only B c) Only C d) All A,B&C e) None of these 13. As per the announcement made by the RBI, some Stock Exchanges in India are allowed to introduce Plain Vanilla Currency Options. The term Plain Vanilla Currency Options is associated with which of the following activities / operations? a) Dollar-Rupee Exchange Rate b) Floating of Commercial Papers c) Launch of new mutual funds d) Deciding the opening price of a share on a particular business day e) None of these 14. Equity schemes managed strong NAV gains, which boost their assets was a news in some financial newspapers. What is the full form of the term NAV as used in above head lines? a) Nil Accounting Variation b) Net Accounting Venture c) Net Asset Value d) New Asset Venture e) None of these 15. As per reports published in various newspapers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 per cent a) in their total investments they made collectively during the year b) more than their profits during previous year c) of the total capital of the company d) less than the total expenditure of the companies e) None of these

16. As per the news published in major newspapers/journals henceforth the Credit Card information though automated interactive voice response system over the phone instead of speaking to the staff. This decision of the banks/credit card companies will provide. A) An additional hurdle to the customers as people feel comfortable in talking to the staff instead of talking to a machine. B) An additional security to the customers as this does not allow any staff to handle any transaction directly. C) Some comfort to the banks as they will be able to reduce their staff strength. a) Only A b) Only B c) Only C d) All A, B&C e) Only A&C 17. As per the reports published recently, the Govt of India has decided to create a separate agency/body to scrutinize all Foreign Direct Investments (FDIs) officially. Uptil now the security screening was being done by the a) Ministry of Foreign Affairs, Govt of India b) Reserve Bank of India c) Securities & Exchange Board of India d) Ministry of Finance, Govt of India e) Ministry of Home Affairs, Govt of India 18. As a measure to help countries hit by global financial meltdown, the RBI has purchased notes worth US $10 billion in terms of Special Drawing Rights from a World Organisation/agency. Which is this agency / organisation? a) Federal Reserve of USA b) Asian Development Bank c) World Bank d) International Monetary Fund e) None of these 19. Which of the following is NOT a public sector undertaking under the Ministry of Defence, Govt of India? a) Paragon Dock Ltd. b) Garden Reach Shipbuilders & Engineers Ltd. c) Bharat Heavy Electricals Ltd. d) Hindustan Aeronautics Ltd. e) Bharat Earth Movers Ltd. 20. Which of the following is NOT as banking related term? a) Radiation b) Outstanding amount c) Benchmark Prime Lending Rate d) Explicit Guarantee e) None of these 21. Insurance service provided by various banks is commonly known as a) Investment Banks b) Portfolio Management c) Merchant Banking d) Bancassurance e) Micro Finance 22. Who amongst the following has recently taken over as the Chairman of the 19th Law Commission? a) AR Lakshmanan b) PV Reddy c) Yashwant Sinha d) Ranjan Bharti Mittal e) None of these 23. Name the senior member on the Board of Directors of RBI who will chair the sub-committee set up by the RBI to study issues and concerns of the micro-finance sector, including interest rates charged by the lenders in this area a. Subir Gokran b. YH Malegam c. Deepak Mohanty 4. Usha Thorat e. None of these 24. The meeting of finance ministers and central bank heads of G-20 in Oct-Nov 2010 was held in a. Tokyo b. London c. Seoul d. New Delhi e. None of these 25. Which of the following is not decided by RBI? a. Bank Rate b. Base Rate c. Repo Rate d. Cash Reserve Ratio e. None of these 26. Which of the following is not nationalized bank? a. Canara Bank b. Allahabad Bank c. IDBI Bank d. PNB e. BoB 27. Which of the following is not an instrument of money market? a. Call Money b. Treasury bill c. Certificate of deposit d. Share e. Repo 28. As per the latest data on electronic transactions released by the Reserve Bank of India, which of the following banks leads in electronic transactions in India? a. ICICI Bank b. HDFC Bank c. SBI d. Citibank e. None of these 29. Which of the following has appointed the Raghuram Rajan Committee to recommend steps to modernize the financial sector? a. Reserve Bank of India b. Ministry of Finance c. Planning Commission d. Minister of Home e. None of these 30. In which year, was IDBI restricted and separated from control of the Reserve Bank of India?

a. 1972 b. 1976 c. 1978 d. 1980 e. None of these 31. State owned infrastructure lender India Infrastructure Finance Company Ltd (IIDCL) has inked a pact to buy loans worth Rs.1500 crore from _____ so that the state-run bank can utilize the funds for other projects in the crucial sector. a. SBI b. PNB c. BoB d. P & SB e. None of these 32. The Reserve Bank has increased the threshold limit for electronic fund transfers using the Real Time Gross Settlement (RTGS) system from `1 Lakh to ` a. 2 Lakh b. 3 Lakh c. 4 Lakh d. 5 Lakh e. None of these 33. Which of the following banks has requested `1,500 cr capital infusion from the govt.? a. Punjab National Bank b. Union Bank of India c. Indian Overseas Bank d. Dena Bank e. None of these 34. Which of the following is not associated with banking? a. Bank rate b. Repo rate c. Morbidity rate d. Base rate e. None of these 35. Name the bank which has sought the approval of the RBI to hive off its IT (Information Technology) related activities into an independent subsidiary? a. SBI b. PNB c. Indian Overseas Bank d. Bank of Baroda e. None of these 36. The Central Government on Nov 10, 2011 informed Parliament that allowing enhanced foreign direct investment (FDI) in multi-brand retail was now under its consideration. The existing policy allows _____ FDI in single-brand retail and _____ in cash-and-carry stores, which cater only to bulk buyers and traders. a. 26%, 49% b. 49%, 74% c. 51%, 100% d. 21%, 51% e. None of these 37. Which of the following is the body/agency set up by Govt. of India to increase the flow of foreign investment in the country? a. FEMA b. FCCB c. NSDL d. FIPB 38. Which of the following is not an instrument of capital market? a) Share b) Bond c) Debenture d) Repo e) All the above 39. What is SABLA? a) Anti-dowry police force b) A Womens organisation fighting for empowerment c) A woman welfare programme launched by the Central govt d) A helpline instituted by the National Commission for Women (NCW) e) None of these 40. Which of the following is associated with economy? a) Hindu Growth Rate (HGR) b) Islamic Saving Rate (ISR) c) Sikh Deposit Rate (SDR) d) Christian Investment Ratio (CIR) d) None of these 41. A new scheme for the health improvement of expectant mothers and ensuring proper nutrition for the newborns has been named as a) Indira Gandhi Matritva Sahyog Yojana b) Rajiv Gandhi Matritva Sahyog Yojana c) Mahatma Gandhi Matritva Sahyog Yojana d) Kasturba Gandhi Matritva Sahyog Yojana e) None of these 42. The central bank in India is a) Central Bank of India b) State Bank of India c) Bank of India d) Indian Bank e) Reserve Bank of India 43. Money supply could be increased when a) RBI purchases govt securities b) RBI sells govt securities c) CRR of banks is increased d) CAR is increased e) None of these 44. Corporation tax in India is a) Tax on production by companies b) Tax on the sales income of the companies c) Tax on net income of the companies d) Tax on net savings of the companies e) None of these 45. The function of money is/are a) Medium of exchange b) Measure of Value c) Store of Value d) All of these e) None of these 46. Which among the following is not a type of inflation? a) Creeping inflation b) Walking inflation c) Running inflation d) Flying inflation e) All the above

47. In India, the bankers, bank is a) IMF b) World Bank c) IDBI d) BIS e) None of these 48. An appropriate measure of economic development is a) rate of increase in income b) improvement in Human Development Index c) decrease in poverty rate d) increase in poverty rate d) increase in life expectancy rate 49. Disinflation means a) increase in prices in the long run b) The prices increase due to export c) The increase in prices is more than average d) Increased prices decrease e) Level of unemployment increases 50. When rate of inflation increases a) Purchasing power of money increases b) Purchasing power of money decreases c) Purchasing power of money remains unaffected d) All (1), (2) and (3) e) Foreign exchange rate increases ANSWERS 1.B 2.D 3.B 4.B 5.D 6.C 7.A 8.B 9.A 10.A 11.D 12.A 13.A 14.C 15.B 16.B 17.B 18.D 19.C 20.A 21.D 22.B 23.B 24.C 25.B 26.C 27.D 28.B 29.C 30.B 31.E 32.A 33.B 34.C 35.C 36.C 37.D 38.D 39.C 40.A 41.A 42.E 43.A 44.C 45.D 46.D 47.E 48.B 49.D 50.B

1. Which of the following is rated the poorest region of the World ? (A) The Middle East (B) Asia (C) Sub-Saharan Africa (D) Latin America (E) None of these Ans : (C) 2. Which of the following terms is not used in the world of economics/finance ? (A) Sinking Fund (B) Third World (C) Open Door Policy (D) Devaluation (E) Privilege Motion Ans : (B) 3. Out of the total population of the world about 80% of it lives in (A) Developed countries (B) BRIC countries (C) Latin America (D) Developing countries (E) None of these Ans : (D) 4. Rashtriya Swasthya Bima Yojana (RSBY) is a scheme launched by the Ministry of (A) Finance (B) Rural Development (C) Commerce (D) Industry (E) Labour Ans : (E) 5. What is the fullform of the abbreviation ASEAN ? (A) Association of South East Agro Nations

(B) Association of South East Asian Nations (C) Alliance of South East Asian Nations (D) Alliance of South East Asian Neighbours (E) None of these Ans : (B)

6. Which of the following is the scheme for providing electricity connections to all the rural household in the country ? (A) ASHA (B) Swadhar (C) Kutir Jyoti (D) Deep Mala (E) None of these Ans : (C) 7. Many times we read about PPP in economic literature. What PPP is ? It is a concept which (A) tells us that exchange rates between currencies are in equilibrium when their purchasing power is the same in both the countries (B) tells us that exchange rates between currencies are in equilibrium when their purchasing power is different in both the countries (C) PPP means t he current Exchange Rate of a currency against US $ (D) a measure of income inequality in developing countries (E) None of these Ans : (A) 8. As we all know the Human Development Index (HDI) is an index of social performance in a single composite index. It is an indication of (A) disparity reduction rate, human resource development rate and the composite index. (B) longevity, education and living standard (C) the facilities for minimum schooling, adult literacy and educational attainments (D) GDP of a nation and the status of its Balance of Trade (E) None of these Ans : (B) 9. Which one of the following countries is not considered a Newly Industrialized Country (NIC) ? (A) South Africa (B) Mexico (C) Brazil (D) Turkey (E) France Ans : (D) 10. Which of the following statements(s) is/are correct about National Rural Employment Guarantee Act (NREGA) ? 1. NREGA is applicable to all rural areas of the country 2. Only construction work shall be given to the workers employed under this Act 3. Every worker is given an amount of Rs. 250 per day for a eight hours shift (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 2

(E) All 1, 2 and 3 Ans : (D) 11. Which of the following is not true about farmers in Least Developed Countries (LDCs) ? (A) The staple crop is the chief source of food (B) Labour is underutilized except for planting and harvesting seasons (C) On the traditional farm, output is always greater than consumption (D) Cultivators utilise only a small portion of land (E) None of these Ans : (B) 12. Which of the following organizations/agencies controls the monetary policy of our country ? (A) SEBI (B) Planning Commission (C) RBI (D) Union Ministry of Finance (E) None of these Ans : (C) 13. Amartya K. Sen emphasizes that having enough to eat depends on one very crucial factor. Which of the following is that factor ? (A) Societys system of entitlement (B) Distribution of agricultural income (C) Low poverty rates (D) Structure of the family (E) None of these Ans : (A) 14. The National Food for Work scheme is now submerged with which of the following ? (A) Pradhan Mantri Gram Sadak Yojana (B) Mahatma Gandhi National Rural Employment Guarantee Act. (C) Bharat Nirman (D) Indira Awas Yojana (E) None of these Ans : (B) 15. Many a times we read about Fertility Rate in economic literature. What is fertility Rate ? (A) The total number of children born in a country in a given year divided by number of children died (B) The number of children born to an average woman during her reproductive years (C) The number of births in a country divided by total population in a given year (D) The number of women in the age group of 15-45 years in a country divided by total number of women died during child birth (E) None of these Ans : (B) 16. How is dual economy distinguished from other economies ? It is a mixture of (A) industrial sector and manufacturing sector (B) traditional agricultural sector and a modern industrial sector

(C) state ownership of the means of production in cooperation of foreign organizations (D) industrial sector and trading of goods obtained through imports (E) None of these Ans : (B) 17. Watershed Development Schemes are a part of 1. Development of Rural Economy. 2. Development of Skilled Workers. 3. Development of Irrigation facilities in India. (A) Only 1 (B) Only 2 (C) Only 1 and 3 (D) Only 3 (E) All 1, 2 and 3 Ans : (C) 18. The second summit of which of the following organisations took place in Brazil recently ? (A) G-8 (B) G-20 (C) SAARC (D) ASEAN (E) BRIC Ans : (E) 19. During the recent Depression workers in Developed countries preferred to take inferior jobs instead of lay off. This situation is known as (A) Seasonal unemployment (B) Cyclical unemployment (C) Disguised unemployment (D) Voluntary unemployment (E) None of these Ans : (E) 20. Which of the following terms is not associated with the game of Football ? (A) Corner kick (B) Wide out (C) Line men (D) Follow on (E) Full back Ans : (D) 21. On which one of the following issues, there had been a dispute between IRDA and SEBI ? (A) ULIP products (B) Violation of SEBI guidelines in respect of investment by big companies in equities (C) Violation of SEBI guidelines about disclosures to be made by the companies (D) Overlapping of the functions of IRDA and SEBI (E) None of these Ans : (A) 22. As per the reports published in various newspapers Maharashtra and Gujarat have signed an agreement on linking of major rivers of the state. Which of the

following is a common river between both the states ? (A) Narmada (B) Ganga (C) Krishna (D) Betwa (E) None of these Ans : (A) 23. We have noticed at on several occasions that cost of petroleum products fluctuates frequently. The action of OPEC members at times to limit output and fix prices may be understood as an action arising out of (A) instructions from WTO (B) fluctuation in output (C) practices of the oil industry (D) group dynamics (E) cartel Ans : (B) 24. Which of the following countries won the FIFA World Cup 2010 ? (A) Germany (B) Netherlands (C) South Africa (D) Spain (E) Brazil Ans : (D) 25. Who amongst the following is not a Badminton Player ? (A) Aparna Popat (B) Saina Nehwal (C) V. V. S. Laxman (D) P. Gopichand (E) Chetan Anand Ans : (C) 26. What is Bilateral aid ? (A) It is technical aid given by I.M.F. to various countries (B) It is given directly by one country to another (C) It is aid with the condition that the repayment will be in inconvertible currency (D) It is a commercial loan made available by various institutions jointly (E) None of these Ans : (B) 27. Who amongst the following is the author of the book A Himalayan Love Story ? (A) Namitha Gokhale (B) V. S. Naipaul (C) Anita Desai (D) Laxmi Sehgal (E) None of these Ans : (A) 28. Which of the following is the name of the organization created specifically to develop small scale industrial sector in our country ? (A) NAWARD (B) SEBI

(C) SIDBI (D) AMFI (E) None of these Ans : (C) 29. Who is Nandan Nilekani ? (A) Chairman, Unique Identification Authority of India (B) Chairman, Airport Authority of India (C) Member, UGC (D) Member, Planning Commission (E) None of these Ans : (A) 30. Which of the following countries will host the next SAARC Summit ? (A) India (B) Bhutan (C) Nepal (D) Fiji (E) None of these Ans : (E) 31. Which of the following organisation/agencies is specifically set up to boost overall rural development in India. (A) RBI (B) SIDBI (C) NABARD (D) SEBI (E) None of these Ans : (C) 32. Commonwealth Games 2010 are to be organised in Delhi in the month of (A) October (B) November (C) August (D) December (E) September Ans : (A) 33. Which of the following cups is associated with the game of Hockey ? (A) Agha Khan Cup (B) DCM Trophy (C) Davis Cup (D) Derby Trophy (E) Rovers Cup Ans : (A) 34. Which of t he following is a horticultural crop ? (A) Urad (B) Jowar (C) Bajra (D) Wheat (E) Mango Ans : (E) 35. According to Planning Commission, the degraded soil of which one of the

following States, poses a big threat to food security and can cause serious economic implications to the nation ? (A) Haryana (B) U. P. (C) M. P. (D) Karnataka (E) Punjab Ans : (E) 36. Which of the following organisations maintains the Rural Infrastructure Development Fund (RIDF) ? (A) RBI (B) NABARD (C) SIDBI (D) LIC (E) None of these Ans : (B) 37. Which of the following is/true about the Competition Commission of India (CCI)? 1. CCI is a regulatory body having quasi-judicial structure. 2. It is established to replace old Monopolies and Restrictive Trade Practices Act. 3. Its main objective is to create a healthy environment in corporate world. (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these Ans : (D) 38. According to RBI, which one of the following is the biggest concern of the country ? (A) Debt crisis in Europe (B) Inflation (C) GDP growth (D) Fiscal deficit (E) None of these Ans : (B) 39. Which of the following organisations has recently launched Farmers Information Service via SMS to help farmers in Gujarat state ? (A) State Bank of India (B) SIDBI (C) Reliance Group of Industries (D) NABARD (E) None of these Ans : (D) 40. On which one of the following countries, the United Nations Security Council (UNSC) has imposed fresh sanctions ? (A) Libya (B) North Korea (C) Sudan (D) Myanmar (E) Iran

Ans : (E) 41. Muhammad Yunus of Bangladesh who was awarded Nobel prize a few years back is a famous (A) Author (B) Economist (C) Social worker (D) Scientist (E) None of these Ans : (B) 42. Sacred Games is a novel written by (A) Amita Desai (B) Arundhati Roy (C) Kiran Desai (D) Khushwant Singh (E) Vikram Chandra Ans : (E) 43. Who amongst the following is a famous author ? (A) Chetan Bhagat (B) S. C. Jamir (C) Anjali Bhagwat (D) O. P. Mehra (E) None of these Ans : (A) 44. The G-20 Summit was organised in June 2010, in which of the following cities ? (A) London (B) Paris (C) Tokyo (D) Toronto (E) None of these Ans : (D) 45. The Govt. of India has established a strategic reserve of about 5 million tonnes of which of the following commodities ? (A) Steel (B) Sugar (C) Oil (D) Foodgrains (E) None of these Ans : (D) 46. Mid Day Meal Scheme is launched to provide cooked food to the (A) Children attending school (B) Those who are getting National Old Age Pension (C) Workers of National Rural Employment Act (D) Resident doctors of Govt. Hospitals in rural areas (E) None of these Ans : (A) 47. Which of the following is not a Cash Crop ? (A) Tobacco (B) Cotton

(C) Coffee (D) Bajara (E) Tea Ans : (D) 48. Members of the Rajya Sabha are elected for a period of (A) 4 years (B) 2 1/2 years (C) 6 years (D) 5 years (E) None of these Ans : (C) 49. The ICC Cricket World Cup Final 2011 will be played in which of the following cities in India ? (A) Kolkata (B) Mumbai (C) Delhi (D) Chennai (E) None of these Ans : (B) 50. What is the contribution of Agricultural Sector in the total GDP of India ? About (A) 10% (B) 20% (C) 40% (D) 30% (E) 50% Ans : (B)

1. Under lease finance business: a. The component representing the replacement cost of the assets should be carried to the balance sheet in the form of provision for depreciation. b. Banks should follow prudential accounting standard norms.] c. Full depreciation should be provided for during the primary lease period of the assets. d. all of these. e. None of these. 2. The work relating to recovery of funds locked up in credit sales falls under Factoring. Factoring is: a. a means of providing post-shipment finance to exporters. b. a type of agriculture financing for purchase of tractors. c. a means of financing traders and manufacturers by taking over the collection of their customers bills. d. Factoring is opening a new factory. e. none of these. 3. Which of the following statement about factoring are correct? a. The factor agent either buys the book debts of client or makes an advance against a charge over the debts. b. He then collects the money from his clients customers direct. c. Sometimes the factor assumes the whole of the credit risk, but in other cases he stipulates for a right of recourse against his client in case the debtors fail to pay. d. all of these. e. None of these.

4. In the case of financing of equipment leasing, hire purchase and factoring by a bank: a. 100 per cent risk weight should be given for calculation of capital to risk assets ratio. b. Income recognition, asset classification and provisioning norms apply. c. The exposure norm of not extending loans in excess of 20 per cent of the banks capital funds to an individual borrower and 50 per cent to a group of borrowers will apply. d. all the above will apply. e. none of these. 5. Portfolio Management Services provided by banks to their clients are: a. in the nature of investment consultancy/management, for a fee b. entirely at the customers risk. c. without guaranteeing, either directly or indirectly, a predetermined return. d. all of these. e. None of these 6. A company is treated as Non-Banking Financial Company: a. if its financial assets are more than 50 per cent of total assets (netted off against intangible assets). b. income from financial assets is more than 50 per cent of the gross income as evidenced from its last audited balance sheet. c. both the above. d. none of the above. E. NONE OF THESE. 7. Non-Banking Financial Companies consist of: a. equipment leasing company, and, investment company. b. hire purchase finance company and mutual benefit financial company. c. Loan company and Housing Finance Company d. all of these. e. none of these. 8. Banks are not allowed to give bank credit to NBFC against: a. bills discounted/rediscounted by NBFCs except for rediscounting of bills discounted by NBFC arising from sale of commercial vehicles. b. investments made by NBFCs in shares, debentures of a current nature i.e. stock-in-trade except to stock broking companies. c. investments of NBFCs in and advances to subsidiaries, group companies or other entities. d. all of these. e. None of these. 9. An NBFC having a certificate of registration and otherwise entitled to accept public deposits is allowed to open its branch/office or allow its agents to operate for mobilization of public deposits: a. within the State where its registered office is situated if its net owned funds is upto Rs.50 crore. b. any where in India if its NOF is more than Rs.50 crore and its fixed deposits program has been rated by one of the approved credit rating agencies at AA or above. c. both of these. d. either a or b) . e. none of these. 10. Which of the following statements about Portfolio Management Services rendered by banks are correct? a. Funds accepted for portfolio management from their clients should not be entrusted to another bank for management. b. The bank should charge a definite fee for services rendered independent of the return to the client. c. The banks own investments and investments belonging to Portfolio Management client should be kept distinct from each other. d. all of these e. none of these.

11. The recommendations of the committee on Banking Sector Reform (popularly known as the Narasimham Committee-II), submitted in April 1998, included: a. 5 per cent weight for market risk for Government/approved securities should be provided. b. The risk weight for Government guaranteed advances to be the same as for other advances. c. Foreign exchange open position limit to carry 100 per cent risk weight. d. all of these. e. none of these.

12. Which of the following is not a recommendation of the Committee on Banking Sector Reforms (Narasimham Committee-II)? a. A minimum target of 9 per cent CAR should be achieved by the year 2000and 10 per cent by 2002. b. An asset should be classified as doubtful if it is in the sub-standard category for 18 months in the first instance and eventually for 12 months and loss if it has been so identified but not written off. c. The Debt Recovery Tribunals should have territorial jurisdiction of the High Court in the concerned state. d. The Government guarantee advances, which have turned sticky, should be classified as NPAs. e. none of these. 13. Which of the following statements are correct about banks entry into insurance sector: a. All banks entering into insurance business will be required to obtain prior approval of the Reserve Bank. b. The Reserve Bank will give permission to banks on case-to-case basis keeping in view all relevant factors. c. Holding of equity by a promoter bank in an insurance company or the IRDA/Central Government will subject to compliance with any rules and regulations lay down participation in any form in insurance business. d. All of these. e. none of these.

14. Guidelines issued by RBI on banks entry into insurance sector include: a. Any Scheduled Commercial Bank would be permitted to undertake insurance business as agent of insurance companies on fee basis, without any risk participation. b. The subsidiaries of banks will be allowed to undertake distribution of insurance produce on agency basis. c. A subsidiary of a bank or of another bank will not normally be allowed to join the insurance company on risk participation basis. d. all of these. e. none of these. 15. Banks will be permitted to set up a joint venture company for undertaking insurance business with risk participation if: a. the maximum equity contribution of participating bank in the joint venture company does not normally exceed 50 per cent of the paid-up capital of the insurance company. b. the net worth of the bank is not less than Rs. 500 crore with the CAR at least 10 per cent as on 31st March 2000. c. the bank has recorded net profit for the last three continuous years and the level of nonperforming assets is reasonable as on 31st March 2000. d. all of these. e. none of these. 16. Under which category Regional Rural Banks are classified? a. Public sector banks. b. co-operative banks. c. private sector banks. d. Investment development bank. E. none of these. 17. Paid-up share capital of Regional Rural Bank is contributed by: a. Central Government only. b. State Government only. c. Central Government, State Government and the sponsor commercial bank in the ratio of 50:15:35 respectively. d. NABARD, the concerned State Government and the sponsor commercial bank in the ratio of 50:25:25 respectively. e. None of these. 18. Where is the headquarters of State Bank of India? a. Mumbai b. Chennai c. Delhi d. Kolkata e, none of these. 19. Name the Governor of R.B.I.:(March 12, 2011) a. Bimal Jalan b. T.N. Seshan c. Duvvuru Subba Rao d. Sam Pitroda

e. None of these. 20. . According to Banking Regulation Act, RBI can fix SLR upto the ceiling of--a. 40 per cent b. 30 per cent c. 20 per cent d. 50 per cent. E. None of these. 21. . What is rate of interest allowed by Banks in Savings Bank Account? a. 3.5% p.a. b. 4% p.a. c. 3.5% p.m. d. 4% p.m. e. none of these

22. The expansion for the BIS, in the context of the banking industry is: (A) Bank for International Settlements (B) Bank for Industrial Settlements (C) Bank for Industrial Sectors (D) Bank for International Services (e) none of these, 23. The expansion for BIFR, in the context of the Indian Industry is: (A) Board for Industrial and Financial Reconstruction (B) Bureau for Industrial and Financial Reconstruction (C) Board for Investment and Financial Reconstruction (D) Bureau for Investment and Financial Reconstruction e. None of these. 24. Cash Reserve Ratio ( CRR) and Statutory Liquidity Ratio (SLR ) are terms most closely related to which of the following industries/markets: (A) Stock Exchange (B) Banking (C) Mutual Fund (D) Income Tax e. None of these. 25. Which of the following programs aims at the promotion of savings among rural women? (A) Rashtriya Mahila Kosh (B) Mahila Samriddhi Yojna (C) Indira Mahila Yojna (D) Javhar Rozgar Yojna e. none of these. 26. Which of the following programs meets the credit needs of poor women? (A) Mahila Samriddhi Yojna (B) Rashtriya Mahila Kosh (C) Indira Mahila Yojna (D) Mahila Samakhya Programme e. None of these. 27. Which of the following deals with economic offences? (A) MISA (B) NSA (C) TADA (D) COFEPOSA e. None of these. 28. Which state has maximum branches of public sector commercial banks? a. U.P. b. Maharashtra c. Karnataka d. Gujarat e. None of these 29. Which institution is known as soft loan window of World Bank? a. IFC b. IDA c. IMF d. Indian Development Forum e. None of these.

30. Meera Seth Committee was related to --a. Development of Handlooms b. Sex-differentiation in employment c. Abolition of Child Labour d. Welfare of working women e. None of these. 31. National Income estimates in India is prepared by --a. Planning Commission b. RBI c. Finance Ministry d. C.S.O. e. None of these. 32. Individual cannot open his account in --a. Urban CO-operative Bank b. Regional Rural Bank c. RBI d. Scheduled Commercial Banks e. None of these 33. What is NIKKEI? a. Share Price Index of Tokyo share market b. Name of Japanese Central Bank c. Japanese name of Countrys Planning Commission d. Foreign Exchange Market of Japan e. None of these 34. NABARD was established on the recommendation of --a. Public Account Committee b. Sivaraman Committee c. Narsimham Committee d. a) and b) e. None of these 35. OTCEI is --a. Atomic submarines of China b. Economic policy of USA c. An Indian Share Market d. A defence research organization e. none of these. 36. What is Hawala? a. Full details of a subject b. Illegal transactions of foreign exchange c. Illegal trading of shares d. Tax evasion e. none of these. 37. Foreign currency which has a tendency of quick migration is called --a. Scarce currency b. Soft currency c. Gold currency d. Hot currency e. None of these. 38. The Headquarter of Asian Development Bank (ADB) is at --a. Singapore b. Manila c. Honk Kong

d. Tokyo E. None of these. 39. What is Stagflation? a. Inflation with growth b. Deflation with growth c. Inflation after deflations d. Inflation with depressions e. None of these 40. Insider Trading is related to --a. Share Market b. Horse racing c. Taxation d. Public Expenditure e. None of these. 41. Public Sector means --a. Government ownership on commerce and trade b. Capitalist ownership on commerce and trade c. Private ownership on trade d. company owned by public. E. None of these 42. What is a limited company? a. In which shareholders possess the ownership limited to their paid up capital b. In which shares are not issued c. A company of Government ownership d. A Registered company 43. Who gains in inflation? a. Saver b. Creditor c. Debtor d. Pension holder 44. Open market operation is a part of --a. Income Policy b. Fiscal Policy c. Credit Policy d. Labour Policy

45. CRISIL --a. Evaluates the credit documents of a company b. Provides financial assistance to industries c. Provides finances for rural areas d. Promotes exports

46 GIC includes various insurance companies. This number is --a. 2 b. 3 c. 4 d. 5

47 LIC of India was established in a. 1897 b. 1950 c. 1956 d. 1965 48. Consumer Protection Act (COPRA) was implemented in --a. 1985 b. 1986 c. 1987 d. 1988

49. Which direct tax gives maximum net revenue to the Government --a. Corporate Tax b. Income Tax c. Wealth Tax d. Gift Tax

50 . Scheduled Bank is that bank which is --a. Nationalized b. Not nationalized c. Based at foreign country d. Included in the second schedule of RBI ANSWERS 1.D 2.C 3.D 4.D 5.D 6.C 7.D 8.D 9.C 10.D 11.D 12.C 13.D 14.D 15.D 16.A 17.C 18.A 19.C 20.A 21.A 22.D 23.A 24.C 25.A 26.B 27.D 28.A 29.B 30.A 31.D 32.C 33.A 34.B 35.C 36.B 37.D 38.B 39.D 40.A 41.A 42.A 43.C 44.C 45.A 46.C 47.C 48.B 49.A 50.D

1. Match the following --Unit I Unit II a. Aqua culture 1. Silk b. Floriculture 2. Grapes c. Seri culture 3. Flower d. Viti culture 4. Fisheries a. b. c. d. a. 4 3 2 1 b. 3 4 1 2 c. 3 4 2 1 d. 4 3 1 2 e. None of these. 2 . The ownership right of a company remains --a. With company Directors b. With equity shareholders c. With debenture holders d. With the government e. None of these. 3 . Which is true for Finance Commission? a. It is a statutory body b. It is constituted under article 280 of the constitution c. Mr. K.C. Pant was Chairman of 10th Finance Commission d. All of these e. None of these. 4. The Govt. of India keeps on clearing the proposal of setting up new SEZs at several places. What does the letter S represent in the SEZ ? (A) Soft (B) Small (C) Special (D) Supportive (e) none of these. 5 Various Govt. agencies/organizations are given responsibilities for implementing various policies/decisions of the Govt. of India. Policies about credit flow to the agricultural/priority sector are framed/implemented through which of the following apex bodies ? (A) ECGC (B) NABARD (C) UTI

(D) IDBI Bank e. None of these. 6 . Which of the following is not a foreign bank working in India ? (A) HSBC (B) Barclays (C) Standard Chartered (D) Yes Bank e. none of these. 7 . Who amongst the following is the Chairman of the 13th Finance Commission ? (A) Bimal Jalan (B) Y. V. Reddy (C) C. Rangarajan (D) Vijay Kelkar e. none of these.

8. Names of two important persons are often visible in ewspapers/magazines/electronic media. These names are Dr. C. Rangarajan and Dr. Bimal Jalan. Which of the following facts are identical in the life of both these two persons ? (A) Both are principal economic advisors to the Prime Minister (B) Both are the Members of the Lok Sabha (C) Both are the former Governors of RBI (D) Both were the Finance Ministers of India (e) none of these. 9. What is phishing? a) A fraudulent way of acquiring PIN numbers and bank passwords using internet (email) by claming to be a trusted brand. b) Unsolicited e-mail c) Net surfing without any specific purpose d) An ingenious way of countering the hacking mechanism 10. For opening a new branch, a Regional Rural Bank requires: a. permission of NABARD b. permission of Director, Institutional Finance. c. RBI licence. d. approval of DRDA. E. none of these.

11 Which of the following statements about RRBs are correct? a. Sponsor banks travellers cheques can be issued by RRBs. b. RRBs can enter into arrangements with the sponsor banks for providing remittance facilities to its customers. c. Where RRBs can afford the investment, they can install lockers also. d. all of these. 12. The Regulatory Authority for Regional Rural Banks is: a. Central Government. b. State Government. c. RBI and NABARD d. Sponsor Bank 13. Regional Rural Banks: a. can issue guarantee against 100% cash margin or 50% cash margin plus collateral. b. have been free from Service Area Approach. They can operate in the entire area of their jurisdiction. Commercial banks will take over the villages allotted to RRBs under SAA. c. are permitted to open Extension counters at the premises of the borrowers, if they are principal banker to the borrower. d. all of these.

14. The risks covered under the Standard Policies of E.C.G.C. are: a. cancellation of export licence or imposition of new export licensing restrictions in India (under contracts policy) b. payment of additional handling, transport or insurance charges occasioned by interruption or diversion of voyage, which cannot be recovered, from the buyer. c. any other cause of loss occurring outside India, not normally insured by commercial insurers, and beyond the control of the exporter and/or the buyer. d. all of these. 15. Commercial risks are covered by ECGC subject to: a. approval of credit limit on each buyer. b. clearance by Reserve Bank of India. c. approval of financing bankers. d. confirmation by Controller of Imports & Exports. 16. The Standard Policies issued by ECGC cover the losses arising out of: a. imposition of restriction on remittances by the government in the buyers country or any government action which may block or delay payment to the exporter. b. war, revolution or civil disturbances in the buyers country. c. new import licensing restrictions or cancellation of valid import licence in the buyers country. d. ALL OF THESE. 17. The Standard Policies issued by ECGC do not cover losses due to: a. commercial disputes raised by the buyer, unless the exporter obtains a decree from a competent court of law in the buyers country in his favour; b. causes inherent in the nature of goods, c. buyers failure to obtain necessary import or exchange authorization from authorities in his country d. all of these. 18. The Deposit Insurance and Credit Guarantee Corporation provides insurance cover in respect of bank deposits with a view to give a measure of protection to depositors, particularly to small depositors, from the risk of loss of their savings arising from: a. the death of the depositor b. the death of the joint party to a deposit account c. bank failures d. dispute between the survivor and the legal heirs of the deceased account holder.

19. What is the Bank Rate now? (12.03.2011) a) 6% b) 5% c) 4% d) 9% 20. What is Cash reserve ratio now? (12.03.2011) a) 5.% b) 6% c) 6.5% d) 8%

21. When did the Reserve Bank of India become a State-owned institution? a 1943 b 1947 c 1949 d 1969 e) none of these 22. Who is the Chairman of Planning commission of India? a) D V Subba Rao b) Montek Singh Ahluwalia c) Dr. Manmohan singh d) M V Narayanamurthy 23. Which of the following organizations/banks has done a commendable work in the field of micro finance and was awarded Nobel Prize also in the past ? (A) Gramin Bank of Bangladesh (B) CRY (C) ASHA (D) NABARD (E) None of these 24. Nobel Prizes are not given for the performance in the area of

(A) Literature (B) Physics (C) Chemistry (D) Music (E) Medical Science 25. Which of the following is considered an informal method of getting credit/finance ? (A) Internet Banking (B) Branch visits (C) Going to money lenders (D) Tele Banking (E) All of these 26. Which of the following is not a Public Sector Unit/Undertaking/Agency ? (A) ECGC (B) SEBI (C) SIDBI (D) Axis Bank (E) BHEL 27. Which of the following does not represent the name of a bank working in India ? (A) YES (B) HDFC (C) TATA (D) Kotak Mahindra (E) Axis 28. As per the news appeared in some major newspapers India is number two in getting PE. What is the full form of PE as used in the financial world ? (A) Professional and Ecofriendly (B) Profitable Equity (C) Profitable and Economical (D) Private and Economical (E) Private Equity 29. Many a times we read in newspapers about Financial Inclusion. What does it really mean ? [Pick up correct statement(s)] 1. Allow the merger and acquisition of banks so that only few big banks exist and continue to cater to the need of corporate sector. 2. Expending the network of banks in such a way that people from lower strata of society also get the benefit of services provided by banks. 3. Providing Insurance cover to each and every citizen so that he/she can live a healthy and long life. (A) Only 1 (B) Only 2 (C) Only 3 (D) Both 1 and 2 (E) All 1, 2 and 3 30. Which of the following organizations recently issued some guidelines related to Participatory Notes as used in financial world ? (A) RBI (B) IRDA (C) SEBI (D) AMFI (E) None of these 31. As per news items published in various newspapers, Italy has offered its help in developing SMEs in India. What is the full form of SME ? (A) Small and Monopolistic Economy (B) Small and Medium Enterprises (C) Speedy and Mechanical (D) Small and Medium Level Economy

(E) None of these 32. The Reserve Bank of India (RBI) plans to engage self help groups (SHGs) and primary agriculture credit societies (PACS) as business correspondents (BCs) to ensure greater banking penetration in the country interior rural belt. The banking regulator has decided to make use of the banking correspondent model extensively to provide banking facility to some ____________ unbanked villages of population in excess of 2,000. a) 1 lakh b) 3 lakh c) 5 lakh d) 7 lakh e) None of these 33. How many banks were nationalised in 1969? a) 10 b) 14 c) 19 d) 6 e) None of these 34. Which among the following banks was not nationalized in 1969 or 1980? a) Punjab National Bank b) Canara Bank c) Corporation Bank d) IDBI Bank e) Allahbad Bank 35. Which of the following is not a subsidiary of the SBI? a) State Bank of Patiala b) State Bank of Indore c) State Bank of Travancore d) State Bank of Hyderabad e) Bank of Maharashtra 36. In which year did Indias economic liberalization start? a) 1984 b) 1991 c) 1999 d) 2004 e) None of these 37. Which of the following is not a feature of open economy? a) Non-interference by govt b) Competition c) Demand and Supply d) Consumers benefit e) Administered price 38. Which of the following is the most advocating agency for economic globalization? a) WTO b) World Bank c) IMF d) EU e) None of these 39. Which of the following is the core of the Basel-II norms? a) Non-Performing Assets b) Capital Adequacy Ratio c) Prime Lending Rate d) Priority Sector Lending e) None of these 40. The ________, armed with a $ 20 - million grant from Bill & Melinda Gates Foundation, announced to launch a financial scheme for helping farmers hit by the economic crisis in developing nations, including India. a) IMF b) World Bank c) ADB d) SAARC e) None of these 41. Which of the following institutions is the apex body responsible for overall development, policy, planning and financial support of agriculture and rural development? a) National Bank for Agriculture and Rural Development b) National Agriculture Cooperative Marketing Federation of India c) Indian Farmers Fertilisers Cooperative Organisation. 42. The term Paper Gold refers to a) Paper currency b) gold of highest purity c) Special Drawing Rights. d) oil bonds e) yellow shining paper. 43. Who among the following is responsible for the execution of the export and import policies of the Government of India? a) Chairman, State Trading Corporation b) Director-General of Trade and Commerce c) Chief Controller of Imports and Exports d) Finance Commission e) Ministry of Commerce 44. Consider the following relationships. A) Deficit budgeting-Inflation B) Consumer Price Index-Inflation C) Export Concessions-Fiscal Policy d) Income-Standard of Living

E) Income Tax-Monetary Policy Which of the above relationship is not correct? a) A and D b) B and E c) Only C d) A and C e) B and D 45. Taxes are collected by the Government with the basic objective(s) of A) Curbing the growing of black money. B) Establishing the coercive authority of the Government. C) Financing Government plans and expenditure D) Reducing inequalities in the society. a) A and B only b) B and C only c) C and D only d) A and D only e) A, B, C and D 46. Which of the following is/are the functions of the Securities and Exchange Board of India? A) To register and regulate collective Investment plans of mutual funds. B) To regulate the business of stock exchange and other securities market. C) To safeguard the interest of investors. D) To regulate capital market with suitable measures. a) A and C only b) B and D only c) A, B and C only d) B, C and D only e) All A, B, C and D 47. Which of the following is/are the objective of the World Trade Organisation? A) To enlarge production and trade of services. B) To enlarge production and trade of goods. C) To improve standard of living of people in the member countries D) To ensure full employment and increase in effective demand a) A only b) A and B only c) A, B and C only d) B and C only d) All A, B, C and D 48. Which of the following is/are not the function(s) of the Reserve Bank of India? A) To regulate cash and credit system of India B) To keep Foreign Exchange Reserve C) To issue five rupee coins and notes D) To formulate the monetary policy. a) B only b) D only c) A and C only d) B and D only e) All A, B, C and D 49. Which of the following economies did China surpass to become the Worlds third largest economy? a) Japan b) South Korea c) The UK d) Germany e) France 50. Which of the following is a function of the National Development Council? a) To review the working of the National Plan from time to time. b) To fix the targets of growth for various economy sectors. c) To prepare a general framework of the Five Year Plan. d) To see to the implementation of the plan e) None of these ANSWERS 1.D 2.B 3.D 4.C 5.B 6.D 7.D 8.C 9.B 10.C 11.D 12.C 13.D 14.D 15.A 16.D 17.D 18.C 19.A 20.B 21.C 22.C 23.A 24.D 25.C 26.B 27.C 28.E 29.B 30.C 31.B 32.A 33.C 34.D 35.E 36.B 37.E 38.A 39.B 40.B 41.A 42.C 43.C 44.C 45.C 46.E 47.E 48.- 49.D 50.A

1. Very often we see in the advertisements published by Financing Institutes/Agencies stating that their products are given high or average Ratings. These Rating Agencies classify bonds/investments in how many categories ? 1. Low Risk 2. Average Risk

3. High Risk (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these 2. As per the reports published in various newspapers/journals etc. the economic map of the world is being redesigned. What is/are the new emerging trends of this new economic map of the world ? 1. With India and Asia at the forefront the centre of economic gravity has shifted to East. 2. Emerging markets, with India among the leaders, are growing faster than old established markets. 3. Central banks of the countries have recognized that case-by-case liquidity solutions are not the answers and a market wide and globally synchronized approach is needed to solve the present crisis. (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these 3. As per the decision taken by the Govt. of India, the exporters of which of the following products to USA and European countries will get an incentive of 2% on their exports ? 1. Leather goods 2. Garments 3. Software (A) Only 1 (B) Only 2 (C) Only 3 (D) Both 1 and 2 only (E) All 1, 2 and 3

4. Which of the following is/are the key features of Indian Economy which were highlighted during the presentation of the Interim Budget 2009-10 ? 1. Despite global financial crisis the GDP growth rate in current financial year has been 71 per cent. 2. Indian economy was adjudged as second fastest growing economy in the world 3. A provision of Rs. 100 crores is made in the annual plan 2009-10 for setting up Unique Identification Authority of India. (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these 5. Many a times we read a term in financial news papers SEPA. What is the full form of the term ? (A) Single Exchange Processing Agency (B) Single Euro Payments Area (C) Single Electronic Processing Agency (D) Super Electronic Purchase Agency (E) None of these 6. As per the newly launched Indira Gandhi National Widow Pension Scheme a monthly pension will be given to the widows. What will be the amount of the pension ? (A) Rs. 200 (B) Rs. 400 (C) Rs. 600 (D) Rs. 800 (E) None of these

7. As per the decision taken by the Govt. of India all the Public Sector Banks (PSBs) will be recapitalised over the next two years so that they can maintain a Capital Adequacy Ratio (CAR) of . (A) 9% (B) 12% (C) 11% (D) 22% (E) None of these 8. As per the Industrial Development Report 2009 Indias rank in Industrial Development was 54 on the Development Index. Which of the following organizations/agencies compiles Industrial Development Index of the world ? (A) International Labour Organisation (B) United Nations Industrial Development Organisation (C) World Bank (D) World Trade Organisation (E) The Economic and Social Council of UNO

9. As per the news published in major news papers/magazines the International Finance Corporation has offered a loan for providing clean drinking water to 30 lakhs people in rural India. What is the amount of the loan ? (A) 5 million US $ (B) 10 million US $ (C) 15 million US $ (D) 20 million US $ (E) None of these 10. The merger of which of the following two Indian companies took place in recent past which is termed as Largest ever merger in Indias Corporate History ? (A) Nuclear Power Corporation and National Thermal Power Corporation (B) State Bank of India and its seven associate banks (C) Hind Aluminium Company and Century Mills (D) Tata Motors and Ashok Leyland (E) Reliance Industries and Reliance Petroleum Ltd.

11. We very frequently read about the activities of the Foreign Exchange Market in newspapers/magazines. Which of the following is/are the major functions of the same ? 1. Transfer of purchasing power from domestic to foreign market. 2. Providing credit for financing foreign trade. 3. Power to purchase gold from foreign countries as most of the nations still work on Gold Standards. (A) Only 1 (B) Only 2 (C) Only 3 (D) Both 1 and 2 only (E) Both 2 and 3 only 12. The Govt. of India recently introduced Money Laundering Bill 2009. Under the bill which of the following agencies is empowered to search the premises after the offence is committed and a case is filed ? (A) Income Tax Department (B) Vigilance Department of the Reserve Bank of India (C) Enforcement Directorate (D) Central Bureau of Investigation (E) None of these 13. Which of the following is/are the components of the Fiscal Deficit ?

1. Budgetary Deficit 2. Market Borrowings 3. Expenditure made from Pradhan Mantri Rahat Kosh (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these

14. Which of the following is not a Welfare scheme launched by the Govt. of India ? (A) Village Grain Bank Scheme (B) Sampoorna Gramin Rozgar Yojana (C) Annapurna Scheme (D) Midday Meal Scheme (E) Bharat Nirman Yojana 15. Which of the following are the instruments of Credit Control in the hands of the RBI ? 1. Lowering or raising the discount and interest rates. 2. Raising the minimum support price of the major agro products. 3. Lowering or raising the minimum cash reserves maintained by the commercial banks. (A) Only 1 (B) Only 2 (C) Only 3 (D) Both 1 and 3 only (E) Both 2 and 3 only

16. Which of the following programmes was launched to further improve the facilities of irrigation in rural India ? (A) National Social Assistance programme (B) Construction of Kiosks for poor (C) Sampoorna Grameen Rozgar Yojana (D) Annapurna Scheme (E) National Watershed Development Programme 17. Many times we read in newspapers that a company is planning to bring a public issue. What does it mean? A) Shares of the company will be issued only through public sector organizations like banks/Central financial institutions etc. B) Shares of the company will be issued to general public only through primary market. C) This means some stakeholders/ promoters are willing to leave the company. Hence they wish to sell their stock to the general public. a) Only A b) Only B c) Only C d) All A,B&C e) None of these 18. Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard? A) Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them. B) Maintaining account books for them for their day-to- day activities so that they are not required to appoint account/finance personnel on a regular basis. C) Lending money by way of overdraft, installment loan, credit or advance for business activities a) Only A b) Only B c) Only C d) Only A&C e) All of these 19. As we all have noticed, banks these days are giving more emphasis on Branchless Banking. What does this really mean? A) Banks will not have many branches as used to be in the good old days. Instead, the number of branches will be restricted and will conduct only a specified core business. B) Banks will launch/operate many delivery channels like ATMs, Mobile Banking/ Internet Banking

etc sot that people are not required to visit a branch for their usual banking needs. C) This means banks will issue only debit or credit cards for all types of day-to-day financial transactions. Cheques/cash payments will not be allowed. a) Only A b) Only B c) Only A&B d) Only B&C e) All A, B&C 20. Which of the following is NOT a function of a bank? a) Providing project finance b) Selling Mutual Funds c) Deciding policy rates like CRR, Repo Rate / SLR etc d) Settlement of payments of behalf of the customers e) All of these are functions of a bank

21. How many banks were nationalized in 1969? (A) 16 (B) 14 (C) 15 (D) 20 (E) None of these. 22. The Reserve Bank of India was established in : (A) 1820 (B) 1920 (C) 1935 (D) 1940 (E) None of these. 23. The first Indian Bank was : (A) Traders Bank (B) Imperial Bank (C) Presidency Bank of Calcutta (D) Indian Bank (E) None of these. 24. The rupee coin was first minted in India in : (A) 1542 (B) 1601 (C) 1809 (D) 1677 (E) None of these. 25. The Export-Import (EXIM) Bank was set up in : (A) 1980 (B) 1982 (C) 1981 (D) 1989 (E) None of these. 26. Planning Commission is : (A) Advisory body (B) Executive body (C) Government body (D) Autonomous body (E) None of these. 27. The Community Development Programme was launched in : (A) 1950 (B) 1952 (C) 1956 (D) 1960 (E) None of these. 28. The highest body which approves the Five-Year Plan is the :

(a) Finance Ministry (B) Lok Sabha (C) Rajya Sabha (D) National Development Council (E) None of these. 29. Which of the following commodities earn maximum foreign exchange for India? (A) Jute (B) Iron and Steel (C) Tea (D) Sugar (E) None of these. 30. The one rupee note bears the signature of : (A) Secretary, Ministry of Finance (B) Governor, Reserve Bank of India (C) Finance Minister (D) Prime Minister (E) None of these. Computer awareness (31-50) 31. The component used in second generation computers is 1. vacuum tube 2. transistors 3. integrated circuits 4. microprocessors 5. None of these 32. Transistors were placed on 1. integrated circuits 2. microprocessors 3. silicon chips 4. vacuum tubes 5. None of these 33. The third generation computers were interfaced with. 1. machine language 2. assembly language 3. operating system 4. high-level language 5. None of these 34. Which one of the following component used in fourth generation computers? 1. Microprocessors 2. Integrated circuits 3. Transistors 4. Vacuum tubes 5. None of these 35. The fifth generation computing devices are based on . 1. internet 2. artificial intelligence 3. high-level languages 4. VLSI 5. None of these 36. The third generation computers was developed during the period . 1. 1940- 1956 2.1961-1963 3.1964-1971 4.1971-present 5. None of these 37. Thousands of integrated circuits were built on to a single silicon chip called . 1. transistors 2. integrated circuits 3. artificial intelligence 4. microprocessors 5. None of these 38. UNIVAC stands for 1 Universal Automatic Computing 2. Universal Auto Computer 3. Universal Automatic Computer 4. Union Automatic Computer 5. None of these 39. In computer, data is converted into information through.. 1. instructions 2. processing 3. data 4. facts 5. None of these 40. Integrated circuits were used in..generation of computers. 1 first 2. second 3. third 4. fourth

5. None of these 41. The first generation computers used..fro circuitry a. vacuum tube b. transistors c. integrated circuits d. microprocessors e. None of these 42. Which one of the following is defined as an un-processed collection of raw facts? a. Information b. Processing c. Instructions d. Data e. None of these 43. Which is a collection of facts from which conclusions may drawn? a. Data b. Information c. Processing d. Instructions e. None of these 44. Information is .. a. processed facts b. in active c. technology based d. set of instructions e. None of these 45. Data are. a. processed facts b. active c. business based d. stored facts e. None of these 46. A set of instructions or procedures for solving problems is defined as a. data b. information c. algorithm d. processing e. None of these 47. Which one of the following is designed to systematically solve a problem? a. Information b. A computer program c. Algorithm d. Data e. None of these 48. A computer system has major components a. 4 b. 3 c. 2 d. 5 e. None of these 49. Which one of the following refers to all the physical components associated with the computer system? a. Hardware b. Software c. Information d. Data e. None of these 50. Software is a set of.. a. data b. raw Facts c. instructions d. information e. None of these

ANSWERS 1.D 2.A 3.D 4.D 5.B 6.A 7.B 8.B 9.C 10.E 11.D 12.E 13.A 14.E 15.C 16.E 17.B 18.D 19.E 20.C 21.B 22.C 23.C 24.A 25.B 26.A 27.B 28.D 29.C 30.C 31.C 32.C 33.B 34.A 35.B 36.C 37.D 38.C 39.B 40.C 41.A 42.D 43.B 44.A 45.D 46.C 47.B 48.C 49.A 50.C

1. SLR has been reduced by RBI wef Dec 18,2010 from ______ to _______ of net demand and time liabilities : a) 40% to 25% b) 40% to 24% c) 25% to 24% d) 25% to 20% 2. The term headline inflation, represents which of the following a) wholesale price index b) consumer price index for industrial workers

c) consumer price index for agriculture workers d) all the above taken together. 3. As per Prevention of Money laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Second Amendment Rules, 2010, no banking company, financial institution and Intermediary, as the case may be, shall allow : a) the opening of or keep any anonymous account b) account in fictitious names c) account on behalf of other persons whose identity has not been disclosed or cannot be verified d) all the above 4. The borrowers under Swarn Jayanti Gram Swairozgar Yojna have the benefit of group life insurance provided by LIC of India. In term of the scheme, in case of natural death of the borrower, the nominee will get _________ : a) Rs.5000 b) Rs.6000 c) Rs.10000 d) Rs.12000 5. The borrowers under Swarn Jayanti Gram Swairozgar Yojna have the benefit of group life insurance provided by LIC of India. In term of the scheme, in case of death of the borrower due to accident, the nominee will get. a) Rs.5000 b) Rs.6000 c) Rs.10000 d) Rs.12000 6. A customer has received inward remittance for credit to NRE account through credit push systems like RTGA, NEFT, NECS and ECS. He request for issue of foreign inward remittance certificate (FIRC): a) the FIRC cannot be issued as per RBI guidelines in such cases. b) the FIRC cannot be issued as per FEDAI Rules in such cases. c) the FIRC can be issued if the amount is below USD 10000. d) the FIRC can be issued if the amount is below USD 100000. 7. A bank branch has received an inward remittance in foreign currency for credit to customers NRE account by converting the foreign exchange in to rupees. The customer request for issue of foreign inward remittance certificate (FIRC) a) the FIRC can be issued as per RBI guidelines in such cases. b) the FIRC can be issued as per FEDAI Rules in such cases . c) the FIRC can be issued if the amount is below USD 10000 d) the FIRC can be issued if the amount is below USD 100000 8. A salaried employee working with a multi national company of repute, wants to open a saving bank account. To comply with KYC requirement he needs to submit (1) letter / certificate issued by the company that he is working with them (2) copy of pass port or driving licence (3) copy of PAN card or voter identity card: a) only 1 b) only 1 and 2 c) only 1 and 3 d) 1 and any of 2 or 3 9. Firm A is owned Mr.A and B and Firm B is also owned by Mr.A and B. Both the firms are engaged in manufacturing and have investment in plant and machinery amounting to Rs.4 cr and Rs.3 cr respectively. As per provisions of MSME Dev Act 2006: a) only one of them can be classified as small enterprise b) none of these can be classified as small enterprise c) both of these can be classified as small enterprise independently d) only firm B having lower investment can be classified as a small enterprise 10. X has a current account with the bank and he agrees to receive a cheque of Rs.10 lac from B and on the strength of this amount of Rs.10lac, he issues 5 cheques of Rs.1.90 each in the name of 5 different persons and retains the balance amount as his commission. Such type of transaction is know as: a) money agency transaction b) money pipe transaction c) money mule transaction d) money flow transaction 11. The money mule transactions can be restricted by banks if the banks follow (1) KYC guidelines of RBI (2) Anti money laundering standards (3) combating of financing of terrorism standards (4) obligations under PML Act 2002:

a) 1 to 4 all b) only 1 and 4 c) only 1 and 3 d) only 1 and 2 12. Which of the following statement regarding non-convertible debentures is not correct: a) Financial Institutions (FIs) to invest in NCDs of maturity up to one year. b) NBFCs including Primary Dealers that do not maintain a working capital limit to issue NCDs of maturity up to one year; c) FIIs to invest in NCDs of maturity up to one year d) none of the above 13. All NBFCs are required to submit a certificate to RBI from Statutory Auditor with respect to the position of the company as on March 31st every year within _____ from the date of finalization of the balance sheet and in any case not later than ____ a) one month, Dec 30th of that year b) one month, June 30th of that year c) 2 months, Dec 30th of that year d) 2 months, June 30th of that year 14. As per RBI guidelines, NBFCs are required to finalise their balance sheet within a period ____ from the date to within it pertains. a) one month b) 2 months c) 3 months d) 6 months Questions on MSEs 15. An enterprise engaged in manufacturing, production or preservation of goods is a micro enterprise, where its investment in ____ is up to ____ : a) plant and Machinery, up to Rs.10 lac b) Plant and Machinery, up to Rs.25 lac c) Equipment, up to Rs.10 lac d) Equipment, up to Rs.25 lac 16. An enterprise engaged in providing or rendering of services is a micro enterprise, where its investment in ____ is up to ___ : a) plant and Machinery, up to Rs.10 lac b) Plant and Machinery, up to Rs.25 lac c) Equipment, up to Rs.10 lac d) Equipment, up to Rs.25 lac 17. An enterprise engaged in manufacturing, production or preservation of goods is a small enterprise, where its investment in _______ is up to _______: a) plant and Machinery, above Rs.10 lac up to Rs.200 lac b) Plant and Machinery, above Rs.25 lac up to Rs.500 lac c) Equipment, above Rs.10 lac up to Rs.200 lac d) Equipment, above Rs.25 lac up to Rs.500 lac. 18. An enterprise engaged in providing or rendering of services is a small enterprise, where its investment in ___is up to ____: a) plant and Machinery, above Rs.10 lac up to Rs.200 lac. b) plant and Machinery, above Rs.25 lac up to 500 lac c) Equipment, above Rs.10 lac up to Rs.200 lac d) Equipment , above Rs.25 lac up to Rs.500 lac 19. An enterprise engaged in manufacturing, production or preservation of goods is a medium enterprise, where its investment in ____ is up to ____ : a) Plant and Machinery, above Rs.10 lac up to Rs.200 lac b) plant and Machinery, above Rs.25 lac up to Rs.500 lac c) Plant and Machinery, above Rs.500 lac up to Rs.1000 lac d) Equipment, above Rs.500 lac up to Rs.1000 lac 20. An enterprise engaged in providing or rendering of services is a medium enterprise, where its investment in ______ is up to ____ a) Equipment, above Rs.10 lac up to Rs.200 lac b) Equipment, above Rs.25 lac up to Rs.500 lac c) Equipment, above Rs.200 lac up to Rs.500 lac d) Equipment, above Rs.500 lac up to Rs.1000 lac 21. The Investment criteria for Micro, Small and Medium enterprises is as per provisions of : a) RBI guidelines b) Guidelines a Ministry of Industries, Govt. of India c) MSME Development Act 2006 d) Companies Act 1956

22. Which of the following activity is also part of the micro and small enterprises (1) small road and water transport operators (2) small business (3) Retail trade (d) self employed persons a) 1 to 4 all b) 1,2 and 4 only c) 1,3 and 4 only d) 2,3 and 4 only 23. All Advances granted to units in KVI sector, irrespective of size of operations, location and amount of original investment in plant and machinery are to be included in : a) 40% sub target of advances to micro enterprises within advances to MSE b) 60% sub target of advances to micro enterprises within advances to MSE c) Overall 10% target for advances to MSE within priority sector d) such advances are non priority sector advances 24. Loans to which of the following are not part of advances to priority sector, under MSME sector : a) loans to micro enterprises b) loans to small enterprises c) loans to medium enterprises d) loans to units in KVI sector of their investment in plant and machinery is above Rs.5 cr and they are not located in rural or semi urban areas 25. Which of the following types of loans are part of indirect to MSEs in priority sector: a) Persons involved in assisting the decentralized sector in the supply of inputs and marketing of outputs of artisans, village and cottage industries. b) Advances to cooperative of producers in the decentralized sector viz. artisans, village and cottage industries. c) Loans granted by banks to NBFCs for on lending to Micro and Small Enterprises (MSE) sector (manufacturing as well as service) d) all the above 26. In terms of recommendations of prime Ministers Task Force on MSMEs, the banks are required to ensure to_______ year on year growth of credit to _____: a) 20% micro, and small enterprises b) 20% micro, small and medium enterprises c) 10% micro and small enterprises d) 10%, micro, small and medium enterprises 27. In terms of recommendations of Prime Ministers Task Force on MSMEs, the banks are required to ensure a ____ increases in no of accounts for credit to ___ : a) 10% micro enterprises b) 10% micro and small enterprises c) 10% micro small and medium enterprises d) 10% all industry related enterprises 28. In terms of recommendations of Prime Ministers Task Force on MSMEs, the banks are to have ____% of their advances to MSE sector to micro enterprises, as on Mar 31,2011: a) 40% b) 50% c)55% d)60% 29. In terms of recommendations of Prime Ministers Task Force on MSMEs, the banks are to have 55% of their advances to MSE sector to micro enterprises, as on : a) Mar 31, 2010 b) Mar 31, 2011 c) Mar 31, 2012 d) Mar 31,2013 30. In terms of recommendations of Prime Ministers Task Force on MSMEs, the banks are to have 60% of their advances to MSE, sector to micro enterprises, which is to be done in stages. Which of the following does not match in this context: a) 45% should be achieved by 31.03.10 b) 50% should be achieved by 31.03.11 c) 55% should be achieved by 31.03.12 d) 60% should be achieved by 31.03.13 31. What %age of advances to MSE sector should be given by banks to micro enterprises with investment in plant and machinery up to Rs.5 lac or investment in equipment up to Rs.2 lac. a) 20% b)25% c) 40% d) 60% 32. 20% of advances to MSE sector should be given by banks to micro enterprises with investment in : a) plant and machinery up to Rs.5 lac or investment in equipment up to Rs.2 lac.

b) plant and machinery above Rs.5 lac or investment in above Rs.2 lac. c) plant and machinery above Rs.5 lac up to Rs.10 lac or investment in equipment above Rs.2 lac up to Rs. 5 lac. d) plant and machinery above Rs.5 lac up to Rs.25 lac or investment in equipment above Rs.2 lac up to Rs.10 lac. 33. An MSME sector loan application for an amount up to Rs.5 lac is to be disposed of within: a) 2 weeks b) 4 weeks c) 6 weeks d) 8-9 weeks 34. An MSME sector loan application for an amount up to Rs.25000 is to be disposed of within : a) 2 weeks b) 4 weeks c) 6 weeks d) 8-9 weeks 35. An MSME sector loan application is to be disposed of within 8-9 weeks where the amount of loan application is : a) up to Rs.25000 b) up to Rs.5 lac c) above Rs.5 lac d) above Rs.25 lac 36. Banks have been mandated by RBI not to accept collateral security in case of MSE loans for an amount up to : a) Rs.2 lac b) Rs.5 lac c) Rs.10 lac d) Rs.25 lac 37. In case of MSE loan accounts with good track record and financial position, the banks can consider loan proposals for an amount up to Rs. ____, without a collateral security : a) Rs. 2 Lac b) Rs. 5 Lac c) Rs. 10 Lac d) Rs. 25 Lac 38. A Composite loan limit ___ can be sanctioned by banks to enable the MSE entrepreneurs to avail of their working capital and term loan requirement through Single Window a) up to Rs.25 lac b) up to Rs.50 lac c) up to Rs. 100 lac d) up to Rs. 200 lac 39. Banks can categorise their MSME general banking branches as specialized MSE branch provided _____ of their advances in the branch are to MSME sector : a) 40% or more b) 50% or more c) 60% or more d) 80% or more 40. A unit is considered as sick MSE unit (1) when any of the borrowal account of the unit remains substandard for more than 6 months or (2) there is erosion in the net worth due to accumulated cash losses to the extent of 50% of its net worth during the previous accounting year and (3) the unit has been in commercial production for at least two years. a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1 to 3 all 41. As per RBI guidelines, the rehabilitation package relating to an MSE, unit, should by fully implemented within _____ months from the date the unit is declared as potentially viable / viable. a) 2 months b) 3 months c) 4 months d) 6 months 42. Under the Credit Linked Capital Subsidy Scheme (CLSS) for Technology Upgradation of Micro and Small Enterprises, the ceiling on loan amount is restricted to : a) Rs. 25 lac b) Rs. 50 lac c) Rs.100 lac d) Rs. 500 lac 43. Under the Credit Linked Capital Subsidy Scheme (CLSS) for Technology Upgradation of Micro and Small Enterprises, the rate of subsidy is : a) 12% of the purchase price of plant and machinery b) 15% of the purchase price of plant and machinery c) 12% of the loan amount d) 15% of the loan amount 44. Which of the following committee is not associated with lending to MSE sector : a) Kapoor Committee b) Deepak Mohanty Committee c) Ganguly Committee d) Nayak Committee 45. Which of the following is to be excluded while calculating the original price of plant and machinery or equipment in case of MSE units: (i) equipment such as tools, jigs, dyes, moulds and spare parts for maintenance and the cost of consumables stores; (ii) installation of plant and machinery; (iii) research and development equipment and pollution controlled equipment (iv)

power generation set and extra transformer installed by the enterprise as per regulations of the State Electricity Board; a) I to iv all b) I, ii and iv only c) ii, iii and iv only d) I, iii and iv only 46. Registration of which of the following group of enterprises, is mandatory under provisions of MSME guidelines: a) micro, small and medium enterprises b) micro and small enterprises engaged in manufacturing c) medium enterprises engaged in manufacturing, production d) medium enterprises engaged in manufacturing, production and providing service. 47. An ancillary unit in SSI is one that supplies ___% of its production to one or more industrial undertaking : a) at least 50% b) 50% or more c) max 50% d) 49% or more CGFT-MSE Guarantee 48. Which among the following borrower is not eligible for CGT MSE guarantee : a) new and existing micro & small enterprise b) IT or software industry c) select activities in case of agri clinics and agri business centres d) Rehabilitation of SSI units covered under CGF e) medium enterprises availing loans up to Rs.25 lac 49. The type of loan and the amount of loan, which is eligible for CGTMSE guarantee cover, is one of the following : a) only fund based working capital limits, up to Rs.100 lac b) only fund based working capital limits and term loans, up to Rs.100 lac c) only fund based working capital limits, term loans and bank guarantee, up to Rs.100 lac d) fund based working capital limits, term loans and non fund based limits all, up to Rs.100 lac. 50. Guarantee cover under CGTMSE scheme is available: (1) for a period as long as the bank and borrower decide to avail (2) for the term loan repayment period (3) for max 5 years where working capital limit alone is sanctioned (4) maximum for 7 years in all cases a) only 1 is correct b) only 2 and 3 are correct c) only 4 is correct d) 2 and 4 are correct 51. The rate of guarantee fee (up front) under CGTMSE scheme in which of the following cases is not stated correctly : a) general category loans 1.5% of sanctioned limit b) loans to SC.ST 1.0% of sanctioned limit c) loans up to Rs.5 lac to micro enterprises 1.0% of sanctioned limit d) laons to units in NE States 0.75% of sanctioned limit. 52. The rate of service fee (renewal) under CGTMSE scheme in which of the following cases is not stated correctly : a) general category loans 0.75% of sanctioned limit. b) loans to SC.ST 0.75% of sanctioned limit c) loans up to Rs.5 lac to micro enterprises 0.5% of sanctioned limit d) loans to units in NE States and women enterprises 0.50% of sanctioned limit 53. The time limit for payment of guarantee fee and service fee under CGTMSE scheme is as under : a) guarantee fee within one month from date of first disbursement and service fee within 2 months from 31st Mar b) guarantee fee within 2 months from date of first disbursement and service fee within 2 months from 31st Mar c) guarantee fee within one month from date of first disbursement and service fee within 1 month from 31st Mar d) guarantee fee within 2 months from date of first disbursement and service fee within 1 month from 31st Mar. 54. The guarantee cover under CGTMSE scheme for women enterprises and loans sanctioned in NE states is ____ % of the balance on date of the account identified as NPA as per RBI guidelines (which statement is wrong) a) up to Rs.5 lac, 85% max Rs.4.25 lac

b) above Rs.5 lac up to Rs.50 lac, 80% max Rs.40 lac c) above Rs.50 lac up to Rs.100 lac, 50% max Rs.25 lac d) total maximum cover amount Rs.65 lac. 55. The guarantee cover under CGTMSE scheme for micro enterprises other than the women enterprises and units is NE states is ___% of the balance on date of the account identified as NPA as per RBI guidelines (locate the false statement) a) up to Rs.5 1ac, 85% max Rs.4.25 lac b) up to Rs.50 lac, 75% max Rs.37.50 lac c) above Rs.50 lac up to Rs.100 lac, 50% max Rs.25 lac d) total maximum cover Rs.65 lac 56. The outstanding balance in a loan to a women enterprise and guaranteed under CTGMSE scheme on date of NPA is Rs.60 lac. what is the amount of claim that bank will be eligible for : a) Rs.45.00 lac b) Rs. 42.50 lac c) Rs.40.00 lac d) Rs.37.50 lac 57. The outstanding balance in a loan to a micro enterprises and guaranteed under CTGMSE scheme on date of NPA is Rs. 60 lac. What is the amount of claim that bank will be eligible for : a) Rs.45.00 lac b) Rs.42.50 lac c) Rs.40.00 lac d) Rs.37.50 lac 58. In a loan guaranteed under CGTMSE schemes, the bank can claim the amount if the following conditions are satisfied (1) guarantee cover is in force (2) account is classified as NPA (3) loan has been recalled and recovery proceedings have been initiated (4) loan has been written off, a) 1 to 4 all b) 1 to 3 only c) 1,2 and 4 only d) 2,3 and 4 only 59. Under CGTMSE guarantee scheme the claim can be lodged (1) within 6 months from date of account becoming NPA (2) within 1 year from date of account becoming NPA (3) within 6 months from date of completion of 18 months lock in period (4) within 12 months from date of completion of 18 months lock in period a) 1 and 4 are correct b) 1 and 3 are correct c) 2 and 3 are correct d) 2 and 4 are correct 60. Under the CGTMSE guarantee scheme, the payment of eligible claims is made as under by the guarantee fund: a) 100% amount immediately within 30 days b) 75% amount within 30 days and balance 25% on conclusion of recovery proceedings c) 75% amount within 45 days and balance 25% on conclusion of recovery proceedings d) 50% amount within 30 days and balance 50% on conclusion of recovery proceedings. ANSWERS 1.c 2.a 3.d 4.b 5.d 6.a 7.a 8.d 9.c 10.c 11.a 12.d 13.a 14.c 15.b 16.c 17.b 18.c 19.c 20.c 21.c 22.a 23.b 24.c 25.d 26.a 27.a 28.b 29.b 30.a 31.c 32.d 33.b 34.a 35.c 36.c 37.d 38.c 39.c 40.d 41.d 42.c 43.b 44.b 45.a 46.c 47.a 48.e 49.d 50.b51.b 52.d 53.a 54.b 55.d 56.a 57.b 58.b 59. 60.b

Q1.Deepak Mohanti committee is related to? base rate Q2. Which state has Highest Population? Uttar Pradesh Q3. Head of MFI Committee? Y. H Malegam Q4.Who is the chief justice?

S H kapadia Q5.Best actress national award won for the which movie? Mithalee Jagtap for Baboo Band Baaja Q6. Non American director of Bank of America Mukesh ambani Q7.which indian american doctor won booker prize? Siddharth Mukherjee Q8 A call means Visiting a prospective customer Q9. Treaty 77related to? Nuclear Q10. Jaitapur Power plant is set up by? France Q11. Nepal PM? Jhalanath Q12. Science and Tech award Shanti Swarup Bhatnagar Q13.Which of the following book written by british author Doris Lessing? Grass is singing Q14.Who won Swiss Open Grand Prix Gold? Saina Nehwal Q15.RBI and the Government has decided to increase the percentage of people connected to bank 80%.At present how much percent of people have access to banking facilities? 40% Q16.The Govt. And the Rbi had set a target to cover 73000 villages having population in excess of 2000 to provide access to banking services, by march2012. Scheme name is Swabhiman Q17.Who has been awarded with the Russias highest honour The Order of St. Andrew? Mikhail Gorbachev Q18.which of the following agencies report asked the income tax department to ensure that a singletax payer is not issued multiple PAN cards because gap between PAN holders and the number of returns filed was 617.1 lakh?

Comptroller and Auditor General Q19.Which scheme is restructured as Natiional Rural Livelihood Mission? Swarnajayanti Gram Swarojgar Yojna Q20.A device make use of pen for drawing pictures or writing information to interact with a computer is called? Stylus Q21.Mouse and Printer make use of? Device Driver Q22.POS? Point of Sale Q23 .GDP related-9% Q24RAM related question Volatile Q25.Spyware in email as a text or image Adware cookies Q26..is when you computer turned on from far off position? Cold booting Q27..One question On Direct Marketing Q28..One on Indirect Marketing. Q29.Rules for Internet? Protocol Q30.One question on Cross marketing Sale of bank products to exsisting coustomer Q31.Customer center is also called? Relationship Center Q32.disk caching feature improves the? Performance of hard disk Q33.not a proper type of direct marketing Advertising Q34.Market size means? Market Survey Q35.A prospect is

Potential buyer

RBI BASED POLOCY

1. In the context of monitoring for verification of end use of funds for loans sanctioned by banks, which of the following is not part of RBI guidelines on the issue : a) meaningful scrutiny of the periodical progress reports and operating / financial statements of the borrowers; b) regular visits to the assisted units and inspection of securities charged / hypothecated to the banks; c) periodical scrutiny of the books of accounts of the borrowers; d) None of the above 2. In the context of monitoring for verification of end use of funds for loans sanctioned by banks, which of the following is part of RBI guidelines on the issue: a) introduction of stock audits depending upon the extent of exposure; b) obtention of certificates from the borrowers that the funds have been utilized for the purposes approved. c) examination of all aspects of diversion of funds during internal audit / inspection of the branches and at the time of periodical reviews. d) all the above 3. A non banking financial company with carries on the business of acquisition of shares and securities and satisfies certain conditions, is called : a) Investment company b) financial company c) non bank finance company d) core investment company 4. A core investment company must hold not less than ____ of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies. a) 100% b) 90% c) 74% d) 60% 5. The investment made by core investment company in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies must constitute not less than ___ of its net assets : a) 100% b) 90% c) 74% d) 60% 6. A core investment company cannot invest in which of the following: a) bank deposits, b) money market instruments, including money market mutual funds c) govt. securities d) none of the above 7. A core investment company can undertake which of the following activity : a) investment in bonds or debentures issued by group companies; b) granting of loans to group companies c) issuing guarantees on behalf of group companies. d) all the above 8. A systemically important core investment company means a core investment company fulfilling the following conditions (a) Having total assets of not less than Rs.100 crore, either individually or in aggregate along with other Core Investment Companies in the Group; (b) Raises or holds public funds; (c) makes investment in bank deposit or govt. securities. a) a, b and c all b) a and b only c) a and c only d) b and c only

9. In the context of system of speed Clearing which of the following is correct (a) it leverages on Core Banking Solutions implemented in banks across the country (b) it facilitates realization of outstation cheques drawn on CBS enabled branches at the local centre itself (c) it obviates the need of such cheques to physically move to the outstation centre. a) a, b and c all b) a and b only c) a and c only d) b and c only 10. Speed Clearing is enabled for cheques issued by account holders with the following transaction codes: a) 10 (savings bank) only b) 11 (current account) only c) 13 (cash credit) only d) all transaction codes, other than those relating to government cheques. 11. The extended scope of Speed Clearing became operative w.e.f: a) Jan 01, 2011 b) Feb 01, 2011 c) Mar 01, 2011 d) Apr 01, 2011 12. As per RBI guidelines, the banks should not invest in Non-SLR securities of original maturity of less than one-year, except which of the following: a) certificate of deposit b) non-convertible debentures c) commercial paper d) all the above 13. As per extant guidelines of RBI on capital adequacy and market discipline, all the banks in India would continue to have the parallel run till __: a) Mar 31, 2011 b) Mar 31, 2012 c) Mar 31, 2013 d) Mar 31, 2014 14. As per extant guidelines of RBI on capital adequacy and market discipline, the banks are to ensure that their Basel II minimum capital requirement continues to be higher than the prudential floor of ____ of the minimum capital requirement computed as per Basel I frame work for credit and market risks. a) 75% b) 80% c) 90% d) 100% 15. As per RBI directions, the preparation of calendar of SLBC/UTLBC meetings by convenor bank and intimation to all the concerned of the cut-off dates for submission of data and dates of meetings to be sent by which of the following dates: a) by 15th January b) by 31st January c) by 15th February d) by 28th February 16. What is the dead line for submission of data to SLBC convenor bank, by difference banks in a State: a) one week from close of the quarter b) 10 days from close of the quarter c) 15 from close of the quarter d) 4 weeks from close of the quarter 17. Convenor banks is required to ensure holding of SLBC meeting within: a) 30 days from close of the half year b) 45 days from close of the half year c) 30 days from close of the quarter d) 45 days from close of the quarter 18. Which time limit fixed by RBI in connection with SLBC meeting is not correctly stated: a) reminder by convenor bank to the banks regarding exact date of meeting 15 days before end of the quarter. b) forwarding the minutes of the SLBC meeting to all stakeholders within 10 days from holding the meeting. c) follow up action points emerged from the meeting within 30 days of forwarding the minutes. d) none of the above 19. Statistics on operation of pre-paid instruments is required to be furnished to RBI by banks: a) on monthly basis, within 7 days from close of the month b) on monthly basis, within 10 days from close of the month c) on quarterly basis, within 7 days from close of the quarter d) on quarterly basis, within 10 days from close of the quarter 20. All eligible current account transactions including trade transactions with which of the following ACU country should be settled in any permitted currency outside the ACU mechanism, as per RBI directions:

a) Srilanka b) Iran c) Mynamar d) Nepal Recalled Questions Jan, 2011 21. An HUF cannot become partner in a Partnership Firm? This is as per provisions of: a) RBI directives b) SEBI guidelines c) Provisions of Hindus Law d) none of the above 22. Where a notice reading Customers can also tender cheques at the counter and obtain acknowledgement on the pay-in-slips is to be displayed by bank branches? a) on the counter b) on the entry door of the branch premises c) on the cheque drop-box itself d) at the place where other notices have been displayed 23. Which of the following RBI guidelines on Nomination is correct? a) on pass book, the name of nominee can be written with or without customer request. b) On FDR, the name of nominee can be written with or without customer request. c) on FDR and pass book the words nomination registered are to be indicated. d) all the above 24. Simplified KYC procedure is to be followed for the accounts with balance not exceeding ________ and advisory notice is to be sent to customer when the balance exceeds: a) Rs.50000, Rs.100000 b) Rs.50000, Rs.80000 c) Rs.40000, Rs.50000 d) Rs.50000, Rs.40000 25. Preservation period for records pertaining to identification documents obtained while opening the account is ___________ a) 10 Years after the business relationship is ended b) 10 Years after the date of opening the account c) 10 Years after the date of last transaction in the account d) 10 Years 26. Loans to __________ with investments in plant and machinery upto Rs.10 cr is classifed as priority sector advance to _________. a) food and agro-based processing units, SME b) food and agro-based processing units, indirect agriculture c) food and agro-based processing units, indirect SME d) Fruit processing units, indirect agrilculture 27. As per recommendations of the _______, the allocation of 60% of the MSE advances to the micro enterprises is to be achived in 2010-11 and 2011-12 is 50%; 55%. a) Prime Ministers Task force b) MSME Ministry Task Force c) RBI Working Group d) Ministry of Industruy Govt. of India Task Force. 28. The limit for collateral free loans is up to Rs.10 alc, is in respect of loans to which of the following category: a) Export loans b) Direct Agriculture Loans c) MSME units d) none of these 29. In case of restructure of Suit Filed accounts under CDR system, the consent of _______ % lenders by _____ consent of ____ is required? a) 75% by value and 75% by number b) 60% by value and 75% by number c) 75% by value and 60% by number d) in suit filed loans, CDR restructuring is not permitted 30. After taking possession of the immovable property, copy of the possession notice is to be published in two local newspaper not later than ____ days. a) 7 days b) 15 days c) 30 days d) no time limit 31. As per RBI directives, the collateral security on indirect agriculture loans in priority sector, is mandatoriy waived up to ________? a) Rs.50000 b) Rs.100000 c) Rs.200000 d) Discretion of the banks

32. Cash Budget System is useful in those cases________: a) where there is wide fluction in the level of current liabilities b) where there is wide fluctuation in the level of fixed assets and long term liabilities. c) where there is wide fluctuation in the level of current assets d) all the above. 33. Which of the following group of exporters is not eligiible for interest subvention of 2% on Rupee Export Credit: a) Jute Manufacturing including Floor covering b) Leather and Leather Manufactures c) Engineering Goods d) Gems and Jewellary 34. Current Ratio is 1.25:1 I case of and 1.33:1 in case of ____ following method of lending: a) MPBF method, cash budget method b) MPBF method, turnover method c) Turnover method, cash budget method d) Turnover method, MPBF method 35. For delay, the penalty is Rs.250 per day and max Rs.25000 in respect of which and max Rs.25000 in respect of which of the following: a) violation of RBI guidelines by a bank b) violation of SEBI regulations by a company c) delay in providig information under RTI Act. d) delay in compensating a customer under Bank Ombudsman Scheme 36. Bank has to reimburse the customers within 12 day in respect of which of the folowing: a) cancellation of demand draft on request of the purchaser. b) wrongful payment of a cheque made from customers account c) amount wrongfully debited on account of failed ATM transactions d) all the above 37. Interest Subsidy of __ on Housing Loans is available upto the loan amount of Rs.10 lac where the cost of house does not exceed ____ : a) 0.5%, Rs.25 lac b) 1.0%, Rs.20 lac c) 1.5%, Rs.15 lac d) 2.0%, Rs.20 lac 38. Additional interest subvention of 2% for prompt payment of crop loan by farmers is available to Public Sector Banks on the condition that the effective rate of interest on such loans to farmers will be ____: a) 5% b) 7% c) 8.5% d) 9% 39. Present minimum limit for RTGS transactions is ____: a) Rs.50000 b) Rs. 1 lac c) Rs. 2 lac d) Rs.5 lac 40. NEFT batches on week days and on Saturday are: a) 11 and 5, half hourly batches b) 11 and 5, hourly batches c) 11 and 5, 2-hourly batches d) 9 and 6, 2-hourly batches 41. The cause of action has arisen on Jan 22, 2010 under Consumer Protection Act. In this case, the suit can be filed by which of the following dates; a) Feb 21, 2010 b) Jan 21, 2011 c) Jan 21, 2012 d) Jan 22, 2013 42. What is the rate of commission on receipts relating to Govt. Business.. a) Rs.5 per Rs.100 of turnover b) Rs.9 per Rs.100 of turnover c) Rs.45 per transaction d) Rs.60 per transaction 43. The ANBC represents which of the following: a) outstanding loans within a bank as on Mar 31st b) net bank credit + investment in non-SLR bonds in HTM category c) net bank credit + investment in non SLR bonds in HTM category FCNR deposits. d) net bank credit export credit. 44. Subsidy in case of SGSY loans is kept in ___. a) in an interest free fixed deposit account

b) in an interest free current account c) in an interest free saving bank account d) in subsidy reserve fund. 45. Maximum project cost for USEP (Women) segment projects in SJSRY is restricted to __ per borrower: a) Rs.2 lac b) Rs.1 lac c) Rs. 50000 d) there is no ceiling 46. CGTMSE amount of guarantee cover for a balance of Rs.80 lakhs in case of an eligible normal borrower in other than NE states, will be: a) Rs.55 lac b) Rs.52.50 lac c) Rs.37.50 lac d) Rs.22.50 lac 47. A bill of lading mentions that certain packets of goods are not properly packed and packing is defective. This is: a) claused bill of lading b) clean bill of lading c) defective bill of lading d) stale bill of lading 48. Which f the following are presently kept at 6% by RBI: a) CRR and Repo Rate b) Repo Rate and Bank Rate c) Bank Rate and CRR d) CRR and reverse repo rate 49. Risk weightage on Consumer Credit/Credit Cards, for capital adequacy ratio purpose is: a) 75% b) 100% c) 125% d) 150 % 50. Minimum period of issue which of the following instruments is not 7 days: a) non-convertible debenture b) certificate of deposit c) commercial paper d) bank FDR 51. Bank-A purchased an NPA account from Bank-B. Now Bank-A wants to sell this account to Bank-C. Bank-B can do so after: a) 15 months b) 15 months from date of account becoming NPA with Bank-B c) 15 months after 1st 90 days, when the Bank B classifies the account in standard category immediately on its purchase. d) 15 months from date of purchase of account from Bank-A. 52. Which of the following loan is exempted from application of Base Rate: a) loan given as export credit b) loan given by a consortium of banks c) loan given for direct agriculture purpose d) none of the above 53. As per provisions of which of the folllowing, the nominated bank gets a period of ___ days to verify the documents drawn drawn under a documentary credit: a) RBI guidelines, 7 banking days b) FEDAI rules, 5 banking days c) UCPDC, 5 calendar days d) none of these is correct 54. Which of the following is not a Financial Sector reform: a) introduction of NPA guidelines b) introduction of obtaining photograph of customers c) application of asset liability management rules d) none of the above 55. Which of the following is not correct regarding Safe Deposit Lockers guidelines of RBI: a) branches are to maintain a waitlist for allotment of lockers that should be transparent b) all locker allotment applications should be ackowledged c) all locker allotment applications should be given a wait list number d) bank can provide detailed terms and conditions of locker allotment to the customer but should not provide copy of the agreement regarding operation of locker. 56. Which of the following banking facility cannot be offered to visually challlenged persons (blind persons): a) cheque book facility, net banking and ATM facility b) Lockers c) retail loans, credit card d) none of these 57. Which of the following activity cannot be undertaken by Business Correspondents a) disbursement of small value loans b) collection of small value deposit

c) recovery of principal and interest d) collection of transaction fee from customer 58. Interest subsidy on Housing Loans allowed to: a) weaker section borrowers only b) middle and low income groups c) only low income group borrowers d) all housing loan borrowers 59. TDS is deductible on which of the following account: a) all type of term deposit accounts including recurring deposit b) all saving bank accounts c) all NRO accounts including saving bank, where of the above d) none of the above. 60. Details of unimplemented awards of Ombudsman scheme pending for more than 3 months, are to be placed by the banks to which of the following: a) Dy. Governor RBI b) CMD/ED/CEO of the bank c) Customer Service Committee of Board d) Board of Directors of the bank 61. W.e.f. Jan 24, 2011, the official timing for opration of Centralised Funds Management System for Monday to Friday is: a) 11 am to 4.30 pm b) 11 am to 5.00 pm c) 10 am to 4.30 pm d) 10 am to 5.00 pm 62. W.e.f. Jan 24, 2011, the official timing for operation of Centralised Funds Management System for Saturday is: a) 11 am to 2.30 pm b) 11 am to 3.00 pm c) 10 am to 2.30 pm d) 10 am to 3.00 pm 63. W.e.f. 1.4.2011, the processing/service charges for local clearing (by clearing house from member banks) for clearing at MICR-CPCs for presenting bank and drawee bank are as under: a) Rs.1 and Rs.1 b) Rs.1 and Rs.1.50 c) Rs.1.50 and Rs.1 d) Rs.1.50 and Rs.1.50 64. W.e.f. 1.4.2011, the processing/service charges for local clearing (by clearing house from member banks) for clearing at cheque truncation, for presenting bank and drawee bank are as under: a) 100 p and 75 p b) 75 p and 75 p c) 50 p and 100 p d) 75 p and 50 p 65. W.e.f. 1.4.2011, the outstation cheque collection charges have been revised by RBI. Which of the following is not corect in the revision: a) up to Rs.5000 Rs.25 b) Rs.5001 to Rs.10000-Rs.50 c) Rs.10001 to Rs.1 lac Rs.100 d) none of the above 66. The charges for collection of outstation cheques as revised by RBI wef 1.04.2011 for cheques of above Rs.1 lac as under: a) Rs.100 b) Rs.150 c) 200 d) at discretion of bank 67. Service charges for cheque collection under speed clearing from customer by banks, wef 1.4.2011 for cheques up to Rs.1 lac are as under: a) Rs.100 b) Rs.150 c) Rs.200 d) nil 68. Service charges for cheque collection under speed clearing from customer by banks, wef 1.4.2011 for cheques above Rs.1 lac are as under: a) Rs.150 b) Rs.200 c) Rs.250 d) at discretion of the bank 69. RBI Sub-Committee of its Central Board of Directors to study Issues and concerns in the micro finance institutions (MFI) Sector, which submitted its report in Jan 2011, was headed by Sh. __: a) Dr. Chakravarty b) YH Malegam c) Deepak Mohanty d) VK Sharma 70. An accounting software developed for running in computer may be written in which of the programming languages: a) COBOL b) FOXPRO c) UNIX d) all of these

ANSWERS 1.d 2.d 3.d 4.b 5.d 6.d 7.d 8.b 9.a 10.d 11.b 12.d 13.c 14.b 15.a 16.c 17.d 18.d 19.a 20.b 21.d 22.c 23.c 24.d 25.a 26.b 27.a 28.d 29.c 30.d 31.d 32.c 33.d 34.d 35.c 36.c 37.b 38.a 39.c 40.b 41.c 42.c 43.b 44.d 45.a 46.b 47.a 48.c 49.c 50.a 51.d 52.d 53.d 54.b 55.d 56.d 57.d 58.b 59.c 60.c61.d 62.d 63.b 64.c 65.d 66.d 67.d 68.d 69.b 70. d

21. Q. Marginal utility, which a customer derives from a good, is A. The change in his total utility as a result of adding one unit to his stock of a good. 22. Q. The "Marginal Productivity Theory of Wages" states that A. The demand for labour is determined by the marginal physical product of labour multiplied by its marginal revenue. 23. Q. Which bank was merged with Oriental Bank of Commerce on RBI's directions? A. Global Trust Bank 24. Q. The difference between the monetary policy and the fiscal policy is A. Fiscal policy tries to control aggregate demand through budgetary means whereas monetary policy controls the same through the quantity of money and the rate of interest. 25. Q. The major field research of the Nobel laureate, Amartya Sen, is A. Welfare Economics 26. Q. "Smart Money" is a term used for A. Credit Card 27. Q. What is "Dumping"? A. It is the sale of the products and services by foreign nations and firms at very low prices so that they could find firm markets in India. 28. Q. The Five Year Plans, in the context of Indian economy, have A. Worked but the benefits have not reached the masses. 29. Q. India has her only OTCEI in A. Mumbai 30. Q. WTO is dedicated to A. Removal of all the trade protection procedures by all the member nations. 31. Q. The basic object of SIDBI is to A. Grant loans to agricultural farmers for export of their commodities. 32. Q. The major function of the Food Corporation of India is:

A. To Check the fluctuation in food grain price by controlling supply 33. Q. The major task of CRISIL is to A. Give credit rating to the firms that want to collect funds from the stock markets through shares and debentures. 34. Q. During the bullish market trends, A. The prices off shares go up 35. Q. NNP (Net National Product) or National Income is the money value of A. Final goods and services produced annually in the economy 36. Q. Marginal Revenue would be negative if the elasticity of demand is A. Inelastic 37. Q. According to JM Keynes, the relationship of National Income(Y), Investment (I) and Consumption (C) is as follows: A. Y = C + I 38. Q. What is Annuity Payments? Ans. Annuity : A fixed amount paid once a year or at interval of a stipulated period. 39. Q. What is Arbitration? Ans. Arbitration : A method for solving disputes, generally of an industrial nature, between the employer and his employees. 40. Q. What is Balance of Trade? Ans. Balance of Trade(or Payment) : The differance between the visible exports and visible imports of two countries in trade with each other is called balance of payment.If the difference is positive the balance of payment(BOP)is called favourable and if negative it is called unfavourable.

1. Q. The term paper-gold is associated with A. Special Drawing Rights (SDRs) from the IMF. 2. Q. TRAI refers to A. Telecommunication Research Authority of India. 3.Q. Disguised Unemployment means A. More persons employed for a job that only a few could accomplish 4. Q. BIFR stands for A. Board of Industrial and Financial Reconstruction 5. Q. National Remote Sensing Agency (NRSA) is located at A. Hyderabad 6. Q. Professor Amartya Sen is the _____ Indian to win a Noble Prize A. Sixth 7. Q. Operation Flood-II, the prestigious milk products revolution of India was initiated on A. October 2, 1979 8. Q. Operation Flood is related to _____ whereas development of fisheries is related to _____ A. White revolution, Blue Revolution 9. Q. Mixed Farming refers to A. Agriculture and dairy farming clubbed together 10. Q. According to Census-2001 the density of population in India is around A. 324 11. Q. NPA stands for A. Non Performing Assets 12. Q. What is common in IRDP, JRY, DDP, DPAP?

A. These are the schemes initiated by the central government for eliminating poverty and unemployment in the rural areas 13. Q. The World Bank, also known as the International Bank of Reconstruction and Development is located at A. Washington 14. Q. Perfect Competition is said to exist if A. Every firm in the industry accepts the market price because it has to 15. Q. A firm would be optimum size if A. Average total cost is minimum 16. Q. The Two gaps theory refers to A. Savings gap and exchange gap 17. Q. The costs, which vary with the output, are termed as A. Overhead costs 18. Q. If the demand and supply schedules for a commodity increases by an equal amount, the market price would tend to A. Remain unchanged 19. Q. Customs duties, export duties, corporation taxes, taxes on capital value of assets (excluding agricultural land of individuals and companies) are A. Taxes and duties which accrue wholly to the central government. 20. Q. Deflation means A. A contraction in the volume of money or credit that results in a decline of price level.

1. Tarapore Committee submitted its report on Full Convertibility on Rupee in a) Current account b) Capital account c) Both on current as well as on capital account d) Special Drawing Rights (SDRs) e) None of these 2. CENVAT is related to a) Sales Tax b) Excise Duty c) Custom Duty d) Service Tax e) None of these 3. NABARD was established on the recommendation of a) Public Accounts Committee b) Shivaraman Committee c) Narasimham Committee d) Khandelwal Committee e) None of these 4. Sampurna Gramin Rozgar Yojana has been launched from a) 1 Apr 2001 b) 25 Sep 2001 c) 30 Sep 2001 d) No scheme of such title has yet been launched e) None of these 5. VAT is imposed a) Directly on the consumer b) On the final stage of production c) On the first stage of production d) On all stages between production and final sale e) None of these 6. Kutir Jyoti scheme is associate with a) Promoting cottage industry in villages b) Promoting employment among rural unemployed youth

c) Providing electricity to rural families living below the poverty line d) All of these e) None of these 7. CAPART is related with a) Assisting and evaluating rural welfare programmes b) Computer hardware c) Consultant service of export promotion. d) Controlling pollution in big industries e) None of these 8. The note issuing dept of RBI should always possess a minimum gold stock worth a) Rs.85 crore b) Rs.115 crore c) Rs.200 crore e) Rs.215 crore e) None of these 9. We very frequently read about Europes sovereign debt crisis these days. Which of the following statements/is/are true about the same? A) In early 2010 the Euro Crisis developed in some countries like Greece, Spain and Portugal. B) This created a credit default swap between the countries of the European Union. C) SAARC countries have offered some assistance to some of the severely affected countries like Portugal, Spain and Greece. a) Only A b) Only B c) Only A&B d) All A, B&C e) None of these 10. As we al know, the RBI raised the Cash Reserve Ratio (CRR) by 25 bps in April 2010. What action will banks will have to take to implement the same? A) They will have to deposit some more money with the RBI as reserved money. B) Banks will be required to give some more loan to projects of the priority sector. C) Banks will be required to give loan equivalent to the CRR to the Govt of India for its day-to-day expenditure as and when required. a) Only A b) Only B c) Only C d) Only A&B e) All A,B&C 11. As per estimates given by the RBI, the Economic Growth during the year 2010-11 will be at which of the following levels? a) 6.5% b) 7% c) 7.5% d) 8% e) None of these 12. Which of the following is/are correct about the RBIs credit policy announced in April 2010? A) Repo Rate raised by 25 bps B) A new reporting platform was introduced for secondary market transactions in Certificates of Deposits (CDs) and Commercial Papers. (CPs). C) Core Investment Companies (CICs) having an asset size of Rs.100 crore are required to register also with the RBI. a) Only A b) Only B c) Only C d) All A,B&C e) None of these 13. As per the announcement made by the RBI, some Stock Exchanges in India are allowed to introduce Plain Vanilla Currency Options. The term Plain Vanilla Currency Options is associated with which of the following activities / operations? a) Dollar-Rupee Exchange Rate b) Floating of Commercial Papers c) Launch of new mutual funds d) Deciding the opening price of a share on a particular business day e) None of these 14. Equity schemes managed strong NAV gains, which boost their assets was a news in some financial newspapers. What is the full form of the term NAV as used in above head lines? a) Nil Accounting Variation b) Net Accounting Venture c) Net Asset Value d) New Asset Venture e) None of these 15. As per reports published in various newspapers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 per cent a) in their total investments they made collectively during the year b) more than their profits during previous year c) of the total capital of the company d) less than the total expenditure of the companies e) None of these 16. As per the news published in major newspapers/journals henceforth the Credit Card information though automated interactive voice response system over the phone instead of speaking to the staff. This decision of the banks/credit card companies will provide.

A) An additional hurdle to the customers as people feel comfortable in talking to the staff instead of talking to a machine. B) An additional security to the customers as this does not allow any staff to handle any transaction directly. C) Some comfort to the banks as they will be able to reduce their staff strength. a) Only A b) Only B c) Only C d) All A, B&C e) Only A&C 17. As per the reports published recently, the Govt of India has decided to create a separate agency/body to scrutinize all Foreign Direct Investments (FDIs) officially. Uptil now the security screening was being done by the a) Ministry of Foreign Affairs, Govt of India b) Reserve Bank of India c) Securities & Exchange Board of India d) Ministry of Finance, Govt of India e) Ministry of Home Affairs, Govt of India 18. As a measure to help countries hit by global financial meltdown, the RBI has purchased notes worth US $10 billion in terms of Special Drawing Rights from a World Organisation/agency. Which is this agency / organisation? a) Federal Reserve of USA b) Asian Development Bank c) World Bank d) International Monetary Fund e) None of these 19. Which of the following is NOT a public sector undertaking under the Ministry of Defence, Govt of India? a) Paragon Dock Ltd. b) Garden Reach Shipbuilders & Engineers Ltd. c) Bharat Heavy Electricals Ltd. d) Hindustan Aeronautics Ltd. e) Bharat Earth Movers Ltd. 20. Which of the following is NOT as banking related term? a) Radiation b) Outstanding amount c) Benchmark Prime Lending Rate d) Explicit Guarantee e) None of these 21. Insurance service provided by various banks is commonly known as a) Investment Banks b) Portfolio Management c) Merchant Banking d) Bancassurance e) Micro Finance 22. Who amongst the following has recently taken over as the Chairman of the 19th Law Commission? a) AR Lakshmanan b) PV Reddy c) Yashwant Sinha d) Ranjan Bharti Mittal e) None of these 23. Name the senior member on the Board of Directors of RBI who will chair the sub-committee set up by the RBI to study issues and concerns of the micro-finance sector, including interest rates charged by the lenders in this area a. Subir Gokran b. YH Malegam c. Deepak Mohanty 4. Usha Thorat e. None of these 24. The meeting of finance ministers and central bank heads of G-20 in Oct-Nov 2010 was held in a. Tokyo b. London c. Seoul d. New Delhi e. None of these 25. Which of the following is not decided by RBI? a. Bank Rate b. Base Rate c. Repo Rate d. Cash Reserve Ratio e. None of these 26. Which of the following is not nationalized bank? a. Canara Bank b. Allahabad Bank c. IDBI Bank d. PNB e. BoB 27. Which of the following is not an instrument of money market? a. Call Money b. Treasury bill c. Certificate of deposit d. Share e. Repo 28. As per the latest data on electronic transactions released by the Reserve Bank of India, which of the following banks leads in electronic transactions in India? a. ICICI Bank b. HDFC Bank c. SBI d. Citibank e. None of these 29. Which of the following has appointed the Raghuram Rajan Committee to recommend steps to modernize the financial sector?

a. Reserve Bank of India b. Ministry of Finance c. Planning Commission d. Minister of Home e. None of these 30. In which year, was IDBI restricted and separated from control of the Reserve Bank of India? a. 1972 b. 1976 c. 1978 d. 1980 e. None of these 31. State owned infrastructure lender India Infrastructure Finance Company Ltd (IIDCL) has inked a pact to buy loans worth Rs.1500 crore from _____ so that the state-run bank can utilize the funds for other projects in the crucial sector. a. SBI b. PNB c. BoB d. P & SB e. None of these 32. The Reserve Bank has increased the threshold limit for electronic fund transfers using the Real Time Gross Settlement (RTGS) system from `1 Lakh to ` a. 2 Lakh b. 3 Lakh c. 4 Lakh d. 5 Lakh e. None of these 33. Which of the following banks has requested `1,500 cr capital infusion from the govt.? a. Punjab National Bank b. Union Bank of India c. Indian Overseas Bank d. Dena Bank e. None of these 34. Which of the following is not associated with banking? a. Bank rate b. Repo rate c. Morbidity rate d. Base rate e. None of these 35. Name the bank which has sought the approval of the RBI to hive off its IT (Information Technology) related activities into an independent subsidiary? a. SBI b. PNB c. Indian Overseas Bank d. Bank of Baroda e. None of these 36. The Central Government on Nov 10, 2011 informed Parliament that allowing enhanced foreign direct investment (FDI) in multi-brand retail was now under its consideration. The existing policy allows _____ FDI in single-brand retail and _____ in cash-and-carry stores, which cater only to bulk buyers and traders. a. 26%, 49% b. 49%, 74% c. 51%, 100% d. 21%, 51% e. None of these 37. Which of the following is the body/agency set up by Govt. of India to increase the flow of foreign investment in the country? a. FEMA b. FCCB c. NSDL d. FIPB 38. Which of the following is not an instrument of capital market? a) Share b) Bond c) Debenture d) Repo e) All the above 39. What is SABLA? a) Anti-dowry police force b) A Womens organisation fighting for empowerment c) A woman welfare programme launched by the Central govt d) A helpline instituted by the National Commission for Women (NCW) e) None of these 40. Which of the following is associated with economy? a) Hindu Growth Rate (HGR) b) Islamic Saving Rate (ISR) c) Sikh Deposit Rate (SDR) d) Christian Investment Ratio (CIR) d) None of these 41. A new scheme for the health improvement of expectant mothers and ensuring proper nutrition for the newborns has been named as a) Indira Gandhi Matritva Sahyog Yojana b) Rajiv Gandhi Matritva Sahyog Yojana c) Mahatma Gandhi Matritva Sahyog Yojana d) Kasturba Gandhi Matritva Sahyog Yojana e) None of these 42. The central bank in India is a) Central Bank of India b) State Bank of India c) Bank of India d) Indian Bank e) Reserve Bank of India 43. Money supply could be increased when a) RBI purchases govt securities b) RBI sells govt securities c) CRR of banks is increased d) CAR is increased

e) None of these 44. Corporation tax in India is a) Tax on production by companies b) Tax on the sales income of the companies c) Tax on net income of the companies d) Tax on net savings of the companies e) None of these 45. The function of money is/are a) Medium of exchange b) Measure of Value c) Store of Value d) All of these e) None of these 46. Which among the following is not a type of inflation? a) Creeping inflation b) Walking inflation c) Running inflation d) Flying inflation e) All the above 47. In India, the bankers, bank is a) IMF b) World Bank c) IDBI d) BIS e) None of these 48. An appropriate measure of economic development is a) rate of increase in income b) improvement in Human Development Index c) decrease in poverty rate d) increase in poverty rate d) increase in life expectancy rate 49. Disinflation means a) increase in prices in the long run b) The prices increase due to export c) The increase in prices is more than average d) Increased prices decrease e) Level of unemployment increases 50. When rate of inflation increases a) Purchasing power of money increases b) Purchasing power of money decreases c) Purchasing power of money remains unaffected d) All (1), (2) and (3) e) Foreign exchange rate increases 1.B 2.D 3.B 4.B 5.D 6.C 7.A 8.B 9.A 10.A 11.D 12.A 13.A 14.C 15.B 16.B 17.B 18.D 19.C 20.A 21.D 22.B 23.B 24.C 25.B 26.C 27.D 28.B 29.C 30.B 31.E 32.A 33.B 34.C 35.C 36.C 37.D 38.D 39.C 40.A 41.A 42.E 43.A 44.C 45.D 46.D 47.E 48.B 49.D 50.B

1. Trade Ministers of Key WTO member countries including India held a meeting at Davos in Switzerland on January 29, 2011. Which one of the following was the purpose of this meeting ? (A) Negotiations for free trade (B) Negotiations to abolish Restrictive Trade Practices (C) Issues relating to agricultural subsidies (D) Negotiations for a global trade deal (E) To include Pakistan and Iran as members Ans : (D) 2. Which one of the following advices has/have been given by leading Economists to Finance Minister during their pre-budget meeting with him ? 1. To take measures to boost farm productivity only. 2. To improve supply of agricultural products only. 3. To reduce the fiscal deficit only. (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) Only 1 and 2 Ans : (D)

3. As per recent newspaper reports, which one of the following countries has signed highest number of deals to get global project finance ? (A) Australia (B) USA (C) Saudi Arabia (D) Spain (E) India Ans : (E)

4. Which of the following terms is used in Banking Field ? (A) Interest Rate Swap (B) Input Devices (C) Sedimentary (D) Zero Hour (E) Privilege Motion Ans : (A) 5. To which of the following States has the Asian Development Bank given a loan of $ 90 m for development of Power projects ? (A) Himachal Pradesh (B) West Bengal (C) Tripura (D) Arunachal Pradesh (E) Assam Ans : (E) 6. On which one of the following issues can SEBI penalize any company in India ? 1. Violation of Banking Regulation Act. 2. Violation of foreign portfolio investment guidelines. 3. For violation of Negotiable Instrument Act. (A) Only 1 (B) All 1, 2 and 3 (C) Only 1 and 2 (D) Only 2 and 3 (E) Only 2 Ans : (E) 7. In the opinion of the Governor of Reserve Bank of India, which one of the following is the reason owing to which Indias inflation is accelerating ? (A) Excess liquidity in market (B) Speculation in essential goods (C) Higher food cost (D) Commodities futures (E) None of these Ans : (A) 8. In opinion of the RBI, which one of the following is/are a threat to the smooth functioning of Indian Companies ? 1. Rising input costs. 2. High interest rates. 3. Inflation only. (A) Only 1 (B) Only 2 (C) Only 1 and 2 (D) Only 3 (E) All 1, 2 and 3 Ans : (E) 9. For which one of the following reasons Government of India has decided to waive off upfront payment of Rs. 1,400 to be made by each customer located in rural areas to get LPG connection ? 1. To help villagers to use LPG in place of firewood/kerosene. 2. To help villagers to save kerosene for agricultural activities.

3. To lure villagers to use LPG which is of substandard quality and not fit for industrial use. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 2 (E) Only 2 and 3 Ans : (A) 10. Expand the term ALM as used in Banking/Finance sector ? (A) Asset Liability Mismatch (B) Asset Liability Maturity (C) Asset Liability Management (D) Asset Liability Manpower (E) None of these Ans : (C) 11. Who amongst the following is the author of the book Half a Life ? (A) Mark Tully (B) Deepak Chopra (C) Chetan Bhagat (D) Ved Mehta (E) V. S. Naipaul Ans : (E) 12. In which one of the following states, village level marketing platform has been set up for the first time in the country ? (A) Haryana (B) Maharashtra (C) Gujarat (D) Bihar (E) Kerala Ans : (C) 13. The RBI has asked banks to spell out their policy, procedures and size of the business on which of the following aspects of banking ? (A) On-shore banking (B) Off-shore banking (C) Investments in secondary market (D) Wealth management (E) None of these Ans : (D) 14. Which of the following organizations has given a US $ 172 billion loan to India to build roads in rural areas ? (A) Asian Development Bank (B) International Monetary Fund (C) Bill Gates Foundation USA (D) World Bank (E) None of these Ans : (D) 15. Which one of the following advices has been given by Finance Minister Pranab Mukherjee to Chartered Accounts ? (A) They must highlight the credit risks (B) They must highlight the operational risks (C) They must bring to the notice of Government tax evasions (D) They must be vigilant against window dressing of companies (E) None of these Ans : (E) 16. Who amongst the following has asked banks to adopt six step approach to prevent diversion of funds by the companies ? (A) Company Registrar

(B) SEBI (C) RBI (D) AMFI (E) All of these Ans : (C) 17. Which one of the following countries has been invited to join BRIC ? (A) Indonesia (B) Bangladesh (C) South Africa (D) China (E) Argentina Ans : (C) 18. Who is Nicolas Sarkozy ? (A) French Prime Minister (B) French President (C) Russian Prime Minister (D) Russian President (E) None of these Ans : (B) 19. Through which one of the following sources domestic funds are raised by Companies ? 1. IPO only 2. FPO only 3. Commercial papers. (A) Only 3 (B) All 1, 2 and 3 (C) Only 1 and 3 (D) Only 1 (E) Only 1 and 2 Ans : (D) 20. Which one of the following was the reason owing to which Govt. wants Reserve Bank of India to tighten prudential norms for NBFCs ? (A) To reduce liquidity in the market (B) It is as per Basel II requirements (C) It is as per Bank for International Settlement (BIS) directives (D) It is to protect NBFCs from any impact of possible economic slowdown (E) None of these Ans : (D) 21. According to World Economic Forum, which one of the following risks is the greatest risk faced by the world in the year 2011 ? (A) Credit Risk (B) Country Risk (C) Counterparty Risk (D) Sovereign Default Risk (E) None of these Ans : (D) 22. Which one of the following decisions has been taken by Govt. in respect of MGNREGA ? (A) The wages should be revised by the State Governments (B) The wages are to be revised by Planning Commission (C) The District Authorities who allot work can give differential wages (D) The wages shall be linked to inflation (E) None of these Ans : (A) 23. (A) (B) (C) What are teaser loan rates charged by banks ? Fixed rate of interest charged by banks Floating rate of interest charged by banks Rate of interest in the initial period is less and goes up subsequently

(D) Rate of interest in the initial period is more and it goes down subsequently (E) None of these Ans : (C) 24. On which one of the following subjects Pranab Sen Committee has submitted its recommendations to the Govt. of India ? (A) MGNREGA (B) Food Security (C) Inflation (D) Food processing industries (E) None of these Ans : (E) 25. Expand the term CCEA as used in administrative circles (A) Cabinet Committee on External Affairs (B) Cabinet Committee on Economic Affairs (C) Cabinet Council on External Affairs (D) Cabinet Council on Economic Affairs (E) None of these Ans : (B) 26. With which one of the following games, Baichung Bhutia is associated ? (A) Hockey (B) Golf (C) Kabaddi (D) Football (E) Tennis Ans : (D) 27. What the full form of the term LIBOR as used in financial banking sectors ? (A) Local Indian Bank Offered Rate (B) London-India Bureau of Regulations (C) Liberal International Bank Official Ratio (D) London Inter Bank Offered Rate (E) None of these Ans : (D) 28. In which one of the following States, Patratu Thermal Power Plant is proposed to be set up ? (A) Madhya Pradesh (B) Bihar (C) Jharkhand (D) West Bengal (E) Kerala Ans : (C) 29. On the basis of which of the following reasons, IMF has projected Indias GDP growth at 88 per cent in 2010-11 ? 1. Strong industrial growth. 2. Strong farm sector growth. 3. High domestics consumption demand. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 3 (E) Only 2 and 3 Ans : (C) 30. Who amongst the following is the ICC Cricketer of the year ? (A) Sachin Tendulkar (B) Kevin Pietersen (C) M. S. Dhoni (D) Sanath Jayasuriya (E) None of these

Ans : (A) 31. Who is Montek Singh Ahluwalia ? (A) Chairman, Planning Commission (B) Dy. Chairman, Planning Commission (C) Cmmerce Secretary, GOI (D) Economic Advisor to Prime Minister (E) None of these Ans : (B) 32. Who amongst the following is the Prime Minister of Australia at present ? (A) Julia Gillard (B) Kevin Rudd (C) Dilma Rousseff (D) Sebastian Vettel (E) None of these Ans : (A) 33. Expand the term FSDC which is used in financial sectors ? (A) Financial Security and Development Council (B) Financial Stability and Development Council (C) Fiscal Security and Development Council (D) Fiscal Stability and Development Council (E) None of these Ans : (B) 34. According to US Department of Agriculture, which one of the following countries in the world is the largest producer of dairy products ? (A) Australia (B) USA (C) China (D) Norway (E) India Ans : (E) 35. With which one of the following games is Tiger Woods associated ? (A) Golf (B) Swimming (C) Tennis (D) Table Tennis (E) Badminton Ans : (A) 36. Which one of the following is largest producer of power in India ? (A) Reliance Power (B) Tata Power (C) National Hydro Power (D) Adani Power (E) NTPC Ans : (C) 37. For which one of the following States, centre has appointed interlocutors ? (A) H.P. (B) J & K (C) Nagaland (D) Manipur (E) None of these Ans : (B) 38. (A) (B) (C) Expand the term GSLV Geosynchronous Satellite Launch Vehicle Global Satellite Launch Vehicle Geosynchronous Station Launch Vehicle

(D) Global Station Launch Vehicle (E) None of these Ans : (A) 39. For which one of the following reasons Basel II norms are to be followed by Commercial Banks ? (A) Risk management (B) Adoption of international accounting standards (C) Restriction on bonus payments to bank executives (D) Transparency in disclosures (E) None of these Ans : (A) 40. With which one of the following sports, the name of Parupalli Kashyap is associated ? (A) Chess (B) Tennis (C) Badminton (D) Athletics (E) None of these Ans : (C) 41. Which of the following terms is used in cricket ? (A) Centre forward (B) Goal (C) Love (D) LBW (E) Bulls eye Ans : (D) 42. With which one of the following activities, Golden Globe Awards are associated ? (A) Journalism (B) Social work (C) Peace initiatives (D) Films (E) None of these Ans : (D) 43. Goodbye Shahzadi is a book written by (A) Shyam Bhatia (B) Ashok Mehta (C) Janardhan Thakur (D) Arun Gandhi (E) None of these Ans : (A) 44. Malayalam writer Akkithom Achyuthan Nambhodiri will be the recipient of which of the following awards ? (A) Moortidevi award (B) Pulitzer Prize (C) Best Asian Author (D) Kalidas Sanman (E) Arjuna Award Ans : (A) 45. With which one of the following sports, Narain Karthikeyen is connected ? (A) F1 (B) Tennis (C) Badminton (D) Table Tennis (E) Snooker Ans : (A) 46. In which one of the following States, Sabari mala temple is located ?

(A) Tamil Nadu (B) A.P. (C) Kerala (D) Karnataka (E) None of these Ans : (C) 47. Which one of the following will set up core banking infrastructure for rural banks ? (A) RBI (B) NABARD (C) SIDBI (D) IBA (E) None of these Ans : (B) 48. Who is Robert Zoelick ? (A) IMF Chief (B) World Bank President (C) ADB President (D) Chief UNIDO (E) None of these Ans : (B) 49. Justice K. G. Balakrishnan is holding the post of (A) Chief Justice of India (B) Chairman, National Human Rights Commission (C) Cabinet Secretary, Govt. of India (D) Revenue Secretary, Govt. of India (E) None of these Ans : (B) 50. Mehbooba Mufti belongs to which one of the following political parties ? (A) National Conference (B) PDP (C) NCP (D) Janta Dal (E) None of these Ans : (B)

. Which of the following is a General Insurance Company functioning in India ? (A) Life Insurance Corporation of India (B) ICICI Prudential (C) Tata AIG (D) United India Insurance Company (E) All are General Insurance Companies Ans : (D) 2. Who amongst the following is the Regulator of Insurance sector in India ? (A) RBI (B) AMFI (C) IRDA (D) SEBI (E) All of these Ans : (C) 3. Which of the following terms is NOT used in insurance sector ? (A) Indemnity (B) Coverage (C) Misuse Alert (D) Casualty

(E) Annuity Ans : (C)

4. Which of the following Public Sector companies/organizations provides insurance cover to exporters ? (A) ECGC (B) NABARD (C) SIDBI (D) IRDA (E) None of these Ans : (A) 5. The main feature of the National Agricultural Insurance Scheme is to insure which of the following? (A) Life of the farmer (B) Crop of the farmer (C) Animals who are used in agricultural activities (D) Land of the farmer (E) Both Land and family of the farmer Ans : (B) 6. In which one of the following States was the first UID card issued ? (A) Gujarat (B) Manipur (C) Assam (D) West Bengal (E) Maharashtra Ans : (E) 7. Which of the following books is written by Anita Desai ? (A) Magic Seeds (B) The Village by the Sea (C) A Bend in the River (D) My God Died Young (E) None of these Ans : (B) 8. Expand the term MGNREGA (A) Mahatma Gandhi National Rural Employment Guarantee Act (B) Mahatma Gandhi National Rural Employment Guarantee Agency (C) Mahatma Gandhi National Rural Employment Generation Act (D) Mahatma Gandhi National Rural Employment Generation Agency (E) None of these Ans : (A) 9. Which of the following terms is used in the field of finance and banking? (A) Elasticity (B) Inflation (C) Pulse Rate (D) Hot waves (E) Plasma Ans : (B) 10. With which one of the following sports, Saina Nehwal is associated ? (A) Chess (B) Badminton (C) Long Jump (D) Lawn Tennis (E) Table Tennis Ans : (B)

11. Which one of the following States has passed a bill to regulate the interest rates on microfinance ? (A) Odisha (B) Haryana (C) Karnataka (D) Kerala (E) Andhra Pradesh Ans : (E) 12. Which of the following rates are reviewed by the RBI at the time of periodical review of the policy ? (a) Bank Rate (b) Repo Rate (c) Savings Bank Rate (A) Only (a) (B) Only (b) (C) Both (a) and (b) (D) All (a), (b) and (c) (E) Only (c) Ans : (D) 13. Which one of the following is not included in TAPI gas project ? (A) Turkmenistan (B) Pakistan (C) Afghanistan (D) India (E) Iran Ans : (E) 14. Which one of the following States has passed a legislation to confiscate the property of corrupt officials and to open schools in these properties ? (A) West Bengal (B) Jharkhand (C) Bihar (D) Rajasthan (E) Haryana Ans : (C) 15. Brihadeeswara Temple has recently celebrated its millennium birthday. In which of the following States is it located ? (A) Karnataka (B) Andhra Pradesh (C) Kerala (D) Odisha (E) Tamil Nadu Ans : (E) 16. In which one of the following States, Jaitapur Nuclear Power plant is proposed to be set up ? (A) Gujarat (B) Haryana (C) Odisha (D) Karnataka (E) Maharashtra Ans : (E) 17. According to Planning Commission, in how many years shall the per capita income in India become double ? (A) Nine (B) Five (C) Seven (D) Three (E) None of these Ans : (A)

18. Expand the term IFRS. (A) Indian Financial Reporting Standards (B) Indian Financial Reporting Systems (C) International Financial Reporting Standards (D) International Financial Reporting Systems (E) None of these Ans : (C) 19. Who is Liu Xiaobo ? (A) North Korean dissident, who has been awarded Nobel peace prize (B) Chinese citizen, who has been awarded Nobel peace prize (C) North Korean dissident, who has been awarded Nobel literature prize (D) Sportsman who was awarded maximum 8 Gold medals in Commonwealth (E) None of these Ans : (B) 20. Who is Hardeep Puri ? (A) Indias permanent representative at UN (B) Vice President, IMF (C) Vice President, World Bank (D) Indias ambassador in USA (E) Indias ambassador in UK Ans : (A) 21. With which one of the following games is Ishant Sharma associated ? (A) Chess (B) Badminton (C) Table Tennis (D) Volley Ball (E) Cricket Ans : (E) 22. With which one of the following games, Frances Zinedine Zidane is associated ? (A) Hockey (B) Football (C) Snooker (D) Volley Ball (E) Base Ball Ans : (B) 23. As per recent newspaper reports, which one of the following countries was second largest importer of goods and services in the world during year 2009-10 ? (A) China (B) USA (C) Japan (D) Russia (E) India Ans : (E) 24. According to RBI governor, which one of the following is the challenge in its monetary policy ? (A) Inflation (B) Inflation and Supportive recovery (C) Inflation and fiscal deficit (D) Inflation and high cost of imports (E) None of these Ans : (C) 25. Which one of the following Public Sector Organisations has offered largest ever equity offer ? (A) SAIL (B) Coal India (C) Power Grid (D) Shipping Corporation of India

(E) None of these Ans : (B) 26. Through which one of the following sources domestic funds are raised by Companies ? (a) IPO only (b) FPO only (c) Commercial papers (A) Only (a) and (b) (B) All (a), (b) and (c) (C) Only (a) and (c) (D) Only (a) (E) Only (c) Ans : (C) 27. Which one of the following was the reason owing to which Govt. want Reserve Bank of India to tighten prudential norms for NBFCs ? (A) To reduce liquidity in the market (B) It is as per Basel II requirements (C) It is as per Bank for International Settlement (BIS) directives (D) It is to protect NBFCs from any impact of possible economic slowdown (E) None of these Ans : (D) 28. In the financial year 2009-10, which one of the following Banks has made highest Total dividend Payout ? (A) SBI (B) PNB (C) Bank of India (D) Canara Bank (E) None of these Ans : (E) 29. In respect of which one of the following countries, India has proposed non payments for import of crude oil ? (A) Iran (B) Iraq (C) Kuwait (D) Sudan (E) U.A.E. Ans : (A) 30. Through which one of the following methods, RBI has allowed Indian companies to hedge exchange rate risks associated with trade transactions ? (A) Forwards (B) FRA (C) Swaps (D) Currency options (E) Cross currency options Ans : (D) 31. Which of the following books is written by V. S. Naipaul ? (A) A Handful of Dust (B) A House for Mr. Biswas (C) A Passage to India (D) Darkness at Noon (E) None of these Ans : (B) 32. With which one of the following countries, India has signed agreement to build Multi Model Transit Transport Project ? (A) Bangladesh (B) Myanmar (C) Sri Lanka

(D) Nepal (E) Maldives Ans : (B) 33. Which one of the following countries is Number One Country in terms of Purchasing Power ? (A) USA (B) Germany (C) China (D) South Korea (E) None of these Ans : (A) 34. Which one of the following directions has been given by Government to Civic bodies ? (A) They must use 70 per cent of the funds for BPL families (B) They must use 70 per cent of the funds for the poor living within their jurisdiction (C) They must use 25 per cent of the funds for BPL families (D) They must use 25 per cent of the funds for the poor living within their jurisdiction (E) None of these Ans : (B) 35. On which one of the following issues a group of business leaders and other eminent citizens have expressed concern ? (A) E-Governance (B) Governance (C) Fiscal deficit (D) Governance deficit (E) None of these Ans : (B) 36. Yuan is the currency of which one of the following countries ? (A) Japan (B) South Korea (C) North Korea (D) Taiwan (E) China Ans : (E) 37. Which one of the following is a leading power in 17 nation Euro Region ? (A) Germany (B) France (C) Norway (D) Greece (E) Portugal Ans : (A) 38. What are teaser loan rates charged by banks ? (A) Fixed rate of interest charged by banks (B) Floating rate of interest charged by banks (C) Rate of interest in the initial period is less and goes up subsequently (D) Rate of interest in the initial period is more and it goes down subsequently (E) None of these Ans : (C) 39. Expand the term FSDC which is used in financial sectors ? (A) Financial Security and Development Council (B) Financial Stability and Development Council (C) Fiscal Security and Development Council (D) Fiscal Stability and Development Council (E) None of these Ans : (B) 40. According to the 8th Annual Global Retail Development Index (GRDI), which one of the following countries is most attractive retail market in the world ?

(A) China (B) India (C) UAE (D) Saudi Arabia (E) Japan Ans : (B) 41. Govt.s Food-for-work programme means (A) to pay in kind to work and build rural infrastructure (B) supplying balanced diet to workers in rural areas (C) no-work-no-pay principle (D) ensuring enough food to rural worker-households (E) None of these Ans : (E) 42. The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called ? (A) Instalment (B) Contribution (C) Premium (D) EMI (E) Service Charge Ans : (A) 43. Which of the following is/are the various types of insurance ? (a) Life Insurance (b) Health Insurance (c) Liability Insurance (A) Only (a) (B) Only (b) (C) Only (c) (D) All (a), (b) and (c) (E) Only (a) and (b) Ans : (D) 44. What is the full form of ESOPs as seen in financial newspapers ? (A) Employee Stock Ownership Plan (B) Executive Salary Options (C) Emergency Stock Operations (D) Early Sales Opportunities (E) Executive Stock Ownership Ans : (A) 45. Who are considered Super Senior Citizen as per budget 2011-12 ? Those who have completed a minimum age of (A) 65 years (B) 70 years (C) 75 years (D) 80 years (E) 90 years Ans : (D) 46. Pohang Steel Company (POSCO) is a company originally based in (A) China (B) Vietnam (C) USA (D) Italy (E) South Korea Ans : (E) 47. As per the revised data released by the Central Statistical Organisation, the GDP growth in 2010 has been at which of the following levels ?

(A) 6% (B) 65% (C) 8% (D) 75% (E) None of these Ans : (C) 48. Who amongst the following was awarded Padma Vibhushan recently (2011) ? (A) Kumar Mangalam Birla (B) Harbhajan Singh (C) Nirupama Rao (D) Montek Singh Ahluwalia (E) Saina Nehwal Ans : (D) 49. Annual meeting of World Economic Forum was organized in January 2011 in which of the following cities ? (A) Davos (B) Milan (C) Tokyo (D) London (E) Lisbon Ans : (A) 50. India recently signed a deal on the sharing of Teesta and Feni river waters. This agreement is signed with which of the following countries ? (A) Nepal (B) China (C) Pakistan (D) Bangladesh (E) Bhutan Ans : (D)

SEBI (Securities Exchange Board of India)

In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place of Government Control, a statutory and autonomous regulatory board with defined responsibilities, to cover both development & regulation of the market, and independent powers have been set up. Paradoxically this is a positive outcome of the Securities Scam of 1990-91. The basic objectives of the Board were identified as: To protect the interests of investors in securities; To promote the development of Securities Market; To regulate the securities market and For matters connected therewith or incidental there to. Since its inception SEBI has been working targetting the securities and is attending to the fulfillment of its objectives with commendable zeal and dexterity. The improvements in the securities markets like capitalization requirements, margining, establishment of clearing corporations etc. reduced the risk of credit and also reduced the market. SEBI has introduced the comprehensive regulatory measures, prescribed registration norms, the eligibility criteria, the code of obligations and the code of conduct for different intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating agencies, underwriters and others. It has framed bye-laws, risk identification and risk management systems for Clearing houses of stock exchanges, surveillance system etc. which has

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made dealing in securities both safe and transparent to the end investor. Another significant event is the approval of trading in stock indices (like S&P CNX Nifty & Sensex) in 2000. A market Index is a convenient and effective product because of the following reasons: It acts as a barometer for market behavior; It is used to benchmark portfolio performance; It is used in derivative instruments like index futures and index options; It can be used for passive fund management as in case of Index Funds. Two broad approaches of SEBI is to integrate the securities market at the national level, and also to diversify the trading products, so that there is an increase in number of traders including banks, financial institutions, insurance companies, mutual funds, primary dealers etc. to transact through the Exchanges. In this context the introduction of derivatives trading through Indian Stock Exchanges permitted by SEBI in 2000 AD is a real landmark. SEBI appointed the L. C. Gupta Committee in 1998 to recommend the regulatory framework for derivatives trading and suggest bye-laws for Regulation and Control of Trading and Settlement of Derivatives Contracts. The Board of SEBI in its meeting held on May 11, 1998 accepted the recommendations of the committee and approved the phased introduction of derivatives trading in India beginning with Stock Index Futures. The Board also approved the "Suggestive Bye-laws" as recommended by the Dr LC Gupta Committee for Regulation and Control of Trading and Settlement of Derivatives Contracts. SEBI then appointed the J. R. Verma Committee to recommend Risk Containment Measures (RCM) in the Indian Stock Index Futures Market. The report was submitted in november 1998. However the Securities Contracts (Regulation) Act, 1956 (SCRA) required amendment to include "derivatives" in the definition of securities to enable SEBI to introduce trading in derivatives. The necessary amendment was then carried out by the Government in 1999. The Securities Laws (Amendment) Bill, 1999 was introduced. In December 1999 the new framework was approved. Derivatives have been accorded the status of `Securities'. The ban imposed on trading in derivatives in 1969 under a notification issued by the Central Government was revoked. Thereafter SEBI formulated the necessary regulations/bye-laws and intimated the Stock Exchanges in the year 2000. The derivative trading started in India at NSE in 2000 and BSE started trading in the year 2001. SEBI - SEBI Administration The Securities and Exchange Board of India Act, 1992 is having retrospective effect and is deemed to have come into force on January 30, 1992. Relatively a brief act containing 35 sections, the SEBI Act governs all the Stock Exchanges and the Securities Transactions in India. A Board by the name of the Securities and Exchange Board of India (SEBI) was constituted under the SEBI Act to amminister its provisions. It consists of one Chairman and five members. One each from the department of Finance and Law of the Central Government, one from the Reserve Bank of India and two other persons and having its head office in Bombay and regional offices in Delhi, Calcutta and Madras. The Central Government reserves the right to terminate the services of the Chairman or any member of the Board. The Board decides questions in the meeting by majority vote with the Chairman having a second or casting vote. Section 11 of the SEBI Act provides that to protect the interest of investors in securities and to promote the development of and to regulate the securities market by such measures, it is the duty of the Board. It has given power to the Board to regulate the business in Stock Exchanges, register and regulate the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers, etc., also to register and regulate the working of collective investment schemes including mutual funds, to prohibit fraudulent and unfair trade practices and insider trading, to regulate take-overs, to conduct enquiries and audits of the stock exchanges, etc.

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All the stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deed, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediary who may be associated with the Securities Markets are to register with the Board under the provisions of the Act, under Section 12 of the Sebi Act. The Board has the power to suspend or cancel such registration. The Board is bound by the directions vested by the Central Government from time to time on questions of policy and the Central Government reserves the right to supersede the Board. The Board is also obliged to submit a report to the Central Government each year, giving true and full account of its activities, policies and programmes. Any one of the aggrieved by the Board's decision is entitled to appeal to the Central Government

Financial Regulatory Bodies

Financial sector in India has experienced a better environment to grow with the presence of higher competition. The financial system in India is regulated by independent regulators in the field of banking, insurance, mortgage and capital market. Government of India plays a significant role in controlling the financial market in India. Ministry of Finance, Government of India controls the financial sector in India. Every year the finance ministry presents the annual budget on 28th February. The Reserve Bank of India is an apex institution in controlling banking system in the country. It's monetary policy acts as a major weapon in India's financial market. Securities and Exchange Board of India (SEBI) is one of the regulatory authorities for India's capital market. Securities and Exchange Board of India (SEBI) National Stock Exchange Bombay Stock Exchange (BSE) Reserve Bank of India Major Financial Institutions in India Foreign Investment Promotion Board Securities and Exchange Board of India(SEBI) Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a nonstatutory body for regulating the securities market. It became an autonomous body in 1992 and more powers were given through an ordinance. Since then it regulates the market through its independent powers. Objectives of SEBI As an important entity in the market it works with following objectives: It tries to develop the securities market. Promotes Investors Interest. Makes rules and regulations for the securities market. Functions Of SEBI Regulates Capital Market Checks Trading of securities. Checks the malpractices in securities market. It enhances investor's knowledge on market by providing education. It regulates the stockbrokers and sub-brokers. To promote Research and Investigation SEBI In India's Capital Market SEBI from time to time have adopted many rules and regulations for enhancing the Indian capital market. The recent initiatives undertaken are as follows: Sole Control on Brokers:Under this rule every brokers and sub brokers have to get registration with SEBI and any stock exchange in India. For Underwriters:For working as an underwriter an asset limit of 20 lakhs has been fixed. For Share Prices:According to this law all Indian companies are free to determine their respective share prices and premiums on the share prices.

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For Mutual Funds:SEBI's introduction of SEBI (Mutual Funds) Regulation in 1993 is to have direct control on all mutual funds of both public and private sector. National Stock Exchange In the year 1991 Pherwani Committee recommended to establish National Stock Exchange (NSE) in India. In 1992 the Government of India authorized IDBI for establishing this exchange. In National Stock Exchange there is trading of equity shares, bonds and government securities. India's Stock Exchanges particularly National Stock Exchange has achieved world standards in the recent years. The NSE India ranked its 3rd position since last four years in terms of total number of trading per calendar year. Presently there are 24 stock exchanges in India, out of which 20 have exchanges National Stock Exchange (NSE), over the Counter Exchange of India Ltd, (OTCEI) and Inter-connected Stock Exchange of India limited (ISE) have nationwide trading facilities. New NSE Reference Rates Both MIBOR (Mumbai Inter Bank Offer Rate) and MIBID (Mumbai Inter Bank Bid Rate) are the two new references rates of the National Stock Exchanges. These two new reference rates were launched on June 15, 1998 for the loans of inter bank call money market. Both MIBOR and MIBID work simultaneously. The MIBOR indicates lending rate for loans while MIBID is the rate for receipts. Bombay Stock Exchange (BSE) Bombay Stock Exchange is one of the oldest stock exchanges in Asia was established in the year 1875 in the name of "The Native Share & Stock Brokers Association". Bombay Stock Exchange is located at Dalal Street, Mumbai, India. It got recognition in 1956 from the Government of India under Securities Contracts (Regulation) Act, 1956. Presently BSE SENSEX is recognized over the world. Trading volumes growth in the year 2004-05 have drawn the attention over the globe. As to the statistics, the total turnover from BSE transcation as in June 2006 is calculated at 72013.36 crores. BSE Indices:The well-known BSE SENSEX is a value weighted of 30 scrips.Other stock indices of BSE are BSE 500, BSEPSU, BSEMIDCAP, BSESMLCAP, and BSEBANKEX. BSE 100 Index:The equity share of 100 companies from the list of 5 major stock exchanges such as Mumbai, Calcutta, Delhi, Ahmedabad and Madras are selected for the purpose of compiling the BSE National Index. The year 1983-84 is taken as the base year for this index. The method of compilation here is same as that of the BSE SENSEX. BSE 200 Index:The BSE 200 Index was lunched on 27th May 1994. The companies under BSE 200 have been selected on the basis of their market capitalisation, volumes of turnover and other findamental factors. The financial year 1989-90 has been selected as the base year. BSE 500 Index:BSE 500 Index consisting of 500 scrips is functioning since 1999. Presently BSE 500 Index represents more than 90% of the total market capitalisation on Bombay Stock Exchange Limited. BSE PSU Index:BSE PSU Index has been working since 4th June 2001. This index includes major Public Sector Undertakings listed in the Exchange. The BSE PSU Index tracks the performance of listed PSU stocks in the exchange. Companies In BSE: Companies listed on the Bombay Stock is rising very fast. As to statistics, companies listed to the end of March 1994 reached at 3,200 compared to 992 in 1980. Reserve Bank of India Reserve Bank of India is the apex monetary Institution of India. It is also called as the central bank of the country. The bank was established on April1, 1935 according to the Reserve Bank of India act 1934. It acts as the apex monetary authority of the country.The Central Office of the Reserve Bank has been in Mumbai since inception. The Central Office is where the Governor sits and is where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India. The preamble of the reserve bank of India is as follows:

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"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." Central Board The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act. Appointed/nominated for a period of four years. Constitution Official Directors Full-time: Governor and not more than four Deputy Governors Non-Official Directors Nominated by Government: ten Directors from various fields and one government Official Others: four Directors - one each from four local boards Functions: General superintendence and direction of the Bank's affairs Local Boards One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi Membership Consist of five members each Appointed by the Central Government For a term of four years Functions To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks, to perform such other functions as delegated by Central Board from time to time. Foreign Investment Promotion Board The Foreign Investment Promotion Board is a special agency in India dealing with the matters relating to Foreign Direct Investment. This special board was set up with a view to raise the volume of investment to the country. The sole aim of the board is to create a base in the country by which a larger volume of investment can be drawn to the country. On 18 February 2003, the board was transferred to the Department of Economic Affairs (DEA) Ministry of Finance. Important functions of the Board are as follows: Formulating proposals for the promotion of investment. Steps to implement the proposals. Setting friendly guidelines for facilitating more investors. Inviting more companies to make investment. To recommend the Government to have necessary actions for attracting more investment. With regards to the structure of the Foreign Investment Promotion Board, the board comprises the following group of secretaries to the Government: Secretary to Government Department of Economic Affairs, Ministry of Finance- Chairman. Secretary to Government Department of Industrial Policy and Promotion, Ministry of commerce and Industry. Secretary to Government, Department of Commerce, Ministry of Commerce and Industry. Secretary to Government, Economic Relations, Ministry of External Affairs. Secretary to Government, Ministry of Overseas Indian Affairs. In the recent years, particularly after the implementation of the new economic policy, the Government has undertaken many steps to attract more investors for investing in the country. The new proposals for the foreign investment are allowed under the automatic route keeping in view the sectoral practices Major Financial Institutions in India This is a list on the major financial institutions in India and their respective date of starting operations.

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Financial Institution

Date of Starting

Imperial Bank of India Reserve Bank of India Industrial Finance corporation of India State Bank of India Unit Trust of India IDBI NABARD SIDBI EXIM Bank National Housing Bank Life Insurance Corporation (LIC) General Insurance Corporation (GIC) Regional Rural Banks Risk Capital and Technology Finance Corporation Ltd. Technology Development & Information Co. of India Ltd. Infrastructure Leasing & Financial Services Ltd. Housing Development Finance Corporation Ltd. (HDFC)

1921 April 1, 1935 1948 July 1, 1955 Feb. 1,1964 July 1964 July 12,1982 1990 January 1, 1982 July 1988 September 1956 November 1972 Oct. 2, 1975 March 1975 1989 1988 1977

Reserve Bank of India and Banking and Financial Institutions

RBI is the banker to bankswhether commercial, cooperative, or rural. The relationship is established once the name of a bank is included in the Second Schedule to the Reserve Bank of India Act, 1934. Such bank, called a scheduled bank, is entitled to facilities of refinance from RBI, subject to fulfillment of the following conditions laid down in Section 42 (6) of the Act, as follows: it must have paid-up capital and reserves of an aggregate value of not less than an amount specified from time to time; and it must satisfy RBI that its affairs are not being conducted in a manner detrimental to the interests of its depositors. The classification of commercial banks into scheduled and nonscheduled categories that was introduced at the time of establishment of RBI in 1935 has been extended during the last two or three decades to include state cooperative banks, primary urban cooperative banks, and RRBs. RBI is authorized to exclude the name of any bank from the Second Schedule if the bank, having been given suitable opportunity to increase the value of paid-up capital and improve deficiencies, goes into liquidation or ceases to carry on banking activities. A system of local area banks announced by the Government in power until 1997 has not yet taken root. RBI has given in principle clearance to fiveapplicants. Specialized development financial institutions

(DFIs) were established to resolve market failures in developing economies and shortage of longterm investments. The first DFI to be established was the Industrial Finance Corporation of India (IFCI) in 1948, and was followed by SFCs at state level set up under a special statute. In 1955, Industrial Credit and Investment Corporation of India (ICICI) was set up in the private sector with foreign equity participation. This was followed in 1964 by Industrial Development Bank of India (IDBI) set up as a subsidiary of RBI. The same year saw the founding of the first mutual fund in the country, the Unit Trust of India (UTI). A wide variety of financial institutions (FIs) has been established. Examples include the National Bank for Agriculture and Rural Development (NABARD), Export Import Bank of India (Exim Bank), National Housing Bank (NHB), and Small Industries Development Bank of India (SIDBI), which serve as apex banks in their specified areas of responsibility and concern. The three institutions that dominate the term-lending market in providing financial assistance to the corporate sector are IDBI, IFCI, and ICICI. The Government owns insurance companies, including Life Insurance Corporation of India (LIC) and General Insurance Corporation (GIC). Subsidiaries of GIC also provide substantial equity and loan assistance to the industrial sector, while UTI, though a mutual fund, conducts similar operations. RBI also set up in April 1988 the Discount and Finance House of India Ltd. (DFHI) in partnership with SBI and other banks to deal with money market instruments and to provide liquidity to money markets by creating a secondary market for each instrument. Major shares of DFHI are held by SBI. Liberalization of economic policy since 1991 has highlighted the urgent need to improve infrastructure in order to provide services of international standards. Infrastructure is woefully inadequate for the efficient handling of the foreign trade sector, power generation, communication, etc. For meeting specialized financing needs, the Infrastructure Development Finance Company Ltd. (IDFC) was set up in 1997. To nurture growth of private capital flows, IDFC will seek to unbundle and mitigate the risks that investors face in infrastructure and to create an efficient financial structure at institutional and project levels. IDFC will work on commercial orientation, innovations in financial products, rationalizing the legal and regular framework, creation of a long-term debt market, and best global practices on governance and risk management in infrastructure projects. NBFCs undertake a wide spectrum of activities ranging from hire purchase and leasing to pure investments. More than 10,000 reporting NBFCs (out of more than 40,000 NBFCs operating) had deposits of Rs1,539 billion in 1995/96. RBI initially limited their powers, aiming to moderate deposit mobilization in order to provide depositors with indirect protection. It regulated the NBFCs under the provisions of Chapter IIIB of the RBI Act of 1963, which were confined solely to deposit acceptance activities of NBFCs and did not cover their functional diversity and expanding intermediation. This rendered the regulatory framework inadequate to control NBFCs. The RBI Working Group on Financial Companies recommended vesting RBI with more powers for more effective regulation of NBFCs. A system of registration was introduced in April 1993 f o r NB F C s wi t h n e t own e d f u n d s (NOF ) o f Rs5 million or above

Overview of Banking and Financial Institutions

The Banking Sector The banking system in India is significantly different from that of other Asian nations because of the countrys unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. There are high levels of illiteracy among a large percentage of its population but, at the same time, the country has a

large reservoir of managerial and technologically advanced talents. Between about 30 and 35 percent of the population resides in metro and urban cities and the rest is spread in several semi-urban and rural centers. The countrys economic policy framework combines socialistic and capitalistic features with a heavy bias towards public sector investment. India has followed the path of growth-led exports rather than the exportled growth of other Asian economies, with emphasis on self-reliance through import substitution. These features are reflected in the structure, size, and diversity of the countrys banking and financial sector. The banking system has had to serve the goals of economic policies enunciated in successive fiveyear development plans, particularly concerning equitable income distribution, balanced regional economic growth, and the reduction and elimination of private sector monopolies in trade and industry. In order for the banking industry to serve as an instrument of state policy, it was subjected to various nationalization schemes in different phases (1955, 1969, and 1980). As a result, banking remained internationally isolated (few Indian banks had presence abroad in international financial centers) because of preoccupations with domestic priorities, especially massive branch expansion and attracting more people to the system. Moreover, the sector has been assigned the role of providing support to other economic sectors such as agriculture, small-scale industries, exports, and banking activities in the developed commercial centers (i.e., metro, urban, and a limited number of semi-urban centers). The banking systems international isolation was also due to strict branch licensing controls on foreign banks already operating in the country as well as entry restrictions facing new foreign banks. A criterion of reciprocity is required for any Indian bank to open an office abroad. These features have left the Indian banking sector with weaknesses and strengths. A big challenge facing Indian banks is how, under the current ownership structure, to attain operational efficiency suitable for modern financial intermediation. On the other hand, it has been relatively easy for the public sector banks to recapitalize, given the incr eases in nonperforming assets (NPAs), as their Governmentdominated ownership structure has reduced the conflicts of interest that private banks would face. Financial Structure The Indian financial system comprises the following institutions: 1. Commercial banks a. Public sector b. Private sector c. Foreign banks d. Cooperative institutions (i) Urban cooperative banks (ii) State cooperative banks (iii) Central cooperative banks 2. Financial institutions a. All-India financial institutions (AIFIs) b. State financial corporations (SFCs) c. State industrial development corporations (SIDCs) 3. Nonbanking financial companies (NBFCs) 4. Capital market intermediaries About 92 percent of the countrys banking segment is under State control while the balance comprises

private sector and foreign banks. The public sector commercial banks are divided into three categories.

1. Under Marginal Standing Facility ( MSF) the banks are allowed to borrow up to one percent of their total ......... ? 1) Deposit base 2) Lending 3) Equity 4) Margins 5) Non Provisioning Assets 2. On 7 June, 2011 Syamala Gopinath Committee submitted a report on Small Savings Saving Fund to the finance minister of India. The highlights include ......... 1) The Kisan Vikas Patras must be with drawn immediately 2) The long term 10 Years bonds must replace KVP 3) Monthly Savings Scheme and National Savings Certificate Period must be reduced from 6 years to 5 years 4) Post Office savings interest must be raised from 3.5 % to 4.0 % 5) All of above 3. From 1 April 2011, the minimum wage floor level increased from Rs. 100 to Rs. ......... as per the order of Labour Ministry? 1) 115 2) 150 3) 160 4) 175 5) 200 4. After ONGC, IOC, SAIL and NTPC ......... got Maharatna status? 1) CIL 2) BHEL 3) BP 4) RIL 5) RBI 5. Union Government passed FCRA on 2 May 2011. FCRA stands for .........? 1) Foreign Contribution Regulation Act 2) Foreign Conservative Restrictive Act 3) Foreign Contribution Repair Act 4) Foreign Contribution Regulation Apathy 5) None 6. 'Upper Caste Commission' to study the poor and economically backward people in the Upper Castes set up by 1) Bihar 2) Uttarakhand 3) West Bengal 4) Goa 5) Rajasthan 7. Gangadhar Pradhan is an exponent in ......... dance? 1) Kuchipudi 2) Kathak 3) Bihu 4) Bharata Natyam 5) None 8. Games/ Sports events are given. Pick the wrong one?

1) 2) 3) 4) 5)

India hosts the 1st Super Series Badminton Championship Novak Djokovic of Italy defeated Rafael Nadal of USA to get ATP Miami Masters Crown Paes- Bhupathi duo clinches Miami Title Chennai Super Kings is the two times IPL winner Polly Umrigar award got by Sachin

9. ......... is used in the banking terminology? 1) Stock 2) Bear 3) Listing 4) Open Market Operations 5) Settlement Day 10. Current Account details are given. Pick the wrong one? 1) Generally the businessman having the more transactions opt this account 2) No rule is there to prohibit to allow the individual to take this account 3) The highest rate of interest paid on this account compare to other accounts 4) Any number of transactions can be done 5) No interest or least interest is paid on this account 11. ......... company agreed to export 1700 Cash Dispenser Machines ( CDM) ( ATM) to SBI having base in USA? 1) Axis 2) Banqit 3) Diebold 4) De La Rue 5) Fujitsu 12. Appreciation of money means ......... 1) A hike in the price of money due to general fall in the price level. 2) A hike in the price of money due to general increase in the price level. 3) A reduction in the price of money due to general fall in the price level. 4) Absence of the price of money due to general fall in the price level. 5) None 13. Food Corporation of India got the working capital loan up to Rs. ......... crore from the union government? 1) 5000 2)1500 3) 500 4) 100 5) 50 14. The recent appointments/ambassadors list is given. Pick the correct one? 1) Cabinet Committee on Economic Affairs decided to include Kamal Nath and K.V.Thomas 2) Shaan was appointed as the Tobacco Ambassador of India 3) K.K. Talwar was appointed as the Chairman of Medical Council of India 4) N.K.Browne is the New Air Chief Marshal 5) All of above 15. A Peak of Lies written by ......... ? 1) Urmila Deshpande 2) Karan Singh 3) Kushwant Singh 4) Chetan Bhagath 5) R.K.Narayan 16. India was considered to be the member of NSG on 23 May 2011. NSG is a premier nonproliferation body. NSG means ......... ? 1) Nuclear System Group 2) Nuclear Symphony Group 3) Nuclear Syndrom Group 4) Nuclear Suppliers Group

5) None 17. India is not the member in ......... ? 1) G 20 2) G 77 3) G 15 4) G 7 5) SAARC 18. In the given list of the days which is wrongly matched one? 1) 31 May- World No Tobacco Day 2) 13 April- Jallianwallah Bagh Massacre Day 3) 24 March - World TB Day 4) 2 April- All Fools Day 5) None 19. Chandrayaan-2 to cost Rs. 426 crore as granted by Central Government. The project Director of Chandrayaan is ......... ? 1) Madhavan Nair 2) Radhakrishnan 3) M.Annadurai 4) Kasturi Rangan 5) None 20. ......... is the first cricketer in the world cup to claim five wickets and did half century against Ireland in 2011 WC ICC edition? 1) Sachin 2) Harbhajan 3) Pathan 4) Yuvraj Singh 5) Jahir Khan 21. Find the wrong abbreviation? 1) CVC-Central Vision Commission 2) CEC- Central Election Commission 3) CAG-Comptroller and Auditor General 4) IBA-Indian Banks' Association 5) IBPS-Institute of Banking Personnel Selection 22. The facts relating to Micro Finance Sector as per the statement of Reserve Bank of India on 3 May 2011 given. Pick the Correct one? 1) Micro Finance mean the lending in the small amounts 2) Maximum Rate of Interest levied by them must not cross 26 % 3) Maximum loan can take by the customer from Micro Finance company should not cross Rs. 35,000 4) The above rules are framed by RBI, according to the recommendations of Malegam Committee with few changes 5) All of above 23. On 3 May 2011, RBI in its monetary Policy for 2011-2012, estimated the inflation around ......... percent? 1) 7 2) 8 3) 4 4) 5 5) 6 24. Dedicated Frieght Corridor ( DFC) connecting Khurja (Uttar Pradesh ) to Kanpur (Uttar Pradesh) rail get the fund of $ 975 million from ......... ? 1) IMF 2) IDA 3) IFC 4) IBRD

5) ADB 25. The World Bank details are given. Pick the correct one? 1) Its original name is International Bank for Reconstruction and Development 2) Present members are 187.The latest member is Montenegro ( 18 Jan 2007) 3) Robert B. Zoellick (born in USA, German Origin ) is the present Chairman 4) It has headquarters in Washington D.C 5) All of above 26. India's total public debt increased by .........percent to Rs. 29,21,360 crore? 1) 4 2) 8.5 3) 8.1 4) 1.3 5) 0.6 27. Dailmler Group got license to establish Non-banking Finance company in India. This group belongs to .........? 1) France 2) Hongkong 3) Japan 4) Germany 5) USA 28. 2010-2011 Fiscal deficit (Actual) declared on 31 may 2011. The deficit is ......... percent against the Budget Estimates of 5.1 %? 1) 4.9 2) 4.7 3) 5.1 4) 9.1 5) 6.7 29. To monitor the investigation and the steps being taken to bring back black money stashed away in foreign banks, the supreme court constituted the committee under the chairman ship of Justice .........? 1) Markendeya Kathju 2) Lahoti 3) Dashratha Rama Reddy 4) Dinakarna 5) Jeevan Reddy

30. .........tops in the GDP growth with 11.3 percent in the last five years (2005-10) as per the report of Mckinsey & co. Haryana (11%) , Bihar (9.6%), Karnataka (8.5%) Kerala (8.1%) Andhra Pradesh (7.4%) 1) Delhi 2) Maharastra 3) Kerala 4) Manipur 5) Gujrat 31. The Awards given. Pick up the incorrect one? 1) Sahitya Bharati Samman 2010 conferred on Sitakanta Mohapatra 2) Girdhar Rathi got the Bihari Puraskar for 2010 for Anta ka Sanshaya 3) Indu Sharma Katha Samman got by Vikas Kumar Jha 4) NTPC bagged the Prestigious Business World Award for power Sector 5) None 32. ICC committee recommended the most controversial DRS in all cricket international matches in the coming days. DRS means......... .? 1) Decision Roll System 2) Decision Revision System

3) Deal Review System 4) Decision Review System 5) Dual Revision System 33. On April 7, 2011 as per the statement of RBI, the Credit rate growth rate is ......... in the banks in 2010-2011 1) 21.38 2) 14.25 3) 16.82 4) 20.12 5) 26.31 34. 2010-2011 Deposit growth rates in the banks are ......... percent? 1) 16.84 2) 15.84 3) 16.25 4) 18.54 5) 26.1 35. As per the new order of RBI in May 2011, the government of India is allowed to borrow Rs. ......... crore from the market through Treasury bills of up to one year? 1) 25000 2) 10000 3) 100000 4) 5000 5) 60000 36. The Financial Literacy includes ..........? 1) How to use the limited funds carefully 2) How to invest the funds 3) How to minimize the risk arisen 4) How to reinvest the money earned 5) All of above 37. The recent Sports events are given. Pick the wrong one? 1) Golden Player of IPL-4 - Chris Gayle of RCB 2) Orange Cap to get more runs in (608) IPL-4- Chris Gayle of RCB 3) Purple Cap to get more Wickets (28) in IPL-4- Latish Malinga of Mumbai Indians 4) Best Individual Performance in IPL 4- Paul Valthaty of Kings XI Punjab 5) None 38. Which bank used Tiny Cards with bio metric identification as part of the financial inclusion? 1) ICICI 2) SBH 3) SBI 4) IDBI 5) Axis ANSWERS: 1.1 2.5 3.1 4.1 5.1 6.1 7.2 8.2 9.4 10.3 11.3 12.1 13.1 14.5 15.1 16.4 17.4 18.4 19.3 20.4 21.1 22.5 23.5 24.4 25.5 26.4 27.4 28.2 29.5 30.5 31.5 32.4 33.5 34.2 35.1 36.5 37.5 38.3.

1. A prospect means a) any customer who walks into the bank b) an employee of the bank c) a customer who is likely to be interested in banks product or service

d) a depositor of the bank e) a borrower of the bank 2. A lead means a) a prospect who is more likely to avail of the Banks product b) a political leader c) a religious leader d) a bank chairman e) None of these 3. Innovation means a) Compensation b) inspiration c) additional perquisites d) implementing new ideas or new methods e) None of these 4. A Call means a) calling on friends b) calling on bank employees c) calling on prospective customers d) to make telephone calls e) calling on relatives 5. The Traditional Marketing style involves a) Telemarketing b) Digital Marketing c) Indirect Marketing d) Direct Marketing e) All of these 6. Modern Method of Marketing include a) Publicity on the net b) Advertisement on the net c) Soliciting business through e-mails d) Tele marketing

e) All of these 7. A true marketing requires a) Command and other mindset b) Control Mindset c) Passive mindset d) Active mindset e) None of these 8. Which of the following sentences is true? a) Marketing is not required in a Buyers Market b) Marketing is not required in a Sellerss market c) Marketing is not required due to competition d) Marketing is not required due to liberalization e) Marketing is not required due to globalisation 9. For effective marketing the salesmen should have which of these qualities? a) Creativity b) Team spirit c) Motivation d) Effective communication skills e) All of these 10. Market information means a) Knowledge of shops and bazaars b) Knowledge of shopping malls c) Knowledge of customer profile and product mix d) knowledge of various languages e) None of these 11. Market Research is needed for a) checking the market area b) checking the right product to be sold c) making proper marketing decisions d) deciding right time to sell e) All of these 12. Which of the following statement is true

a) Marketing makes the company to go into loss due to higher expenses b) Marketing is not required in profit making companies c) Marketing sharpens the minds of the employees d) Marketing is a time bound seasonal function e) Marketing is a waste of time 13. Marketing plan helps in a) better lead generation b) better systems c) better results d) improved balance sheet e) better customer service 14. If Marketing is done effectively which of the following is not required? a) Advertisement b) Publicity c) Market Research d) Market Segmentation e) None of these 15. Motivation means a) Inspiring employees to perform better b) Better communication skills c) Sales Coaching d) Market Research e) None of these 16. In a Selling Process in todays world? a) Only standard products are sold b) No customization required c) the seller need not have product knowledge d) the seller should aim at customer satisfaction e) only quantum of sales matters 17. Find the true statement a) Marketing is a waste of the employees time

b) Marketing is not required in India due to its vast population c) Marketing involves additional work d) Marketing involves team work e) Marketing is not required today due to IT advancement 18. A Target market is a) entire country b) entire city c) entire globe d) that which consists of customers who need the identified product e) all of these 19. Sales forecasting involves a) Sales Planning b) Sales Pricing c) Distribution Channels d) Consumer tastes e) All of these 20. Which of the following product is being sold under the brand name ZODIAC a) Shirts b) Ties c) Both A and B d) Liberty 21. SWIFT cars are being manufactured by a) DCM b) Maruti c) Premier Automobiles d) Hyundai 22. With you all the way is the slogan of a) Vodafone b) SBI c) ICICI d) Raymonds 23. Which company used the slogan The complete Man

a) DCM b) GRASIM c) RAYMONDS d) VIMAL 24. Which brand uses the slogan Made for each other for its cigarettes? a) Cavenders b) Four Square c) Red & White d) Wills 25. Cross Selling means a) Identifying customer needs b) matching the products to customer needs c) convincing the customers of product benefits d) responding to questions and objections of customers e) all of these ANSWERS 1 (c) 2 (a) 3 (d) 4 ( c) 5 (d) 6 (e) 7 (d) 8 (b) 9 (e) 10 (c ) 11 (e) 12 (c) 13 ( c) 14(b) 15 (a) 16 (d) 17 (d) 18 (d) 19 (e) 20 (c) 21 (b) 22 (b) 23 (c) 24 (d) 25 (e)

1. The Japanese art Ikebana is related to which among the following? [A]Flower Decoration [B]Wall Painting [C]Chorus Dance [D]Sculptures

2. Who among the follwoing is known to have mooted the idea of Food Coupons? [A]C Rangrajan [B]V Subbarao [C]Nandan Nilkeni [D]Kaushik Basu

3. Singhe-Khababs Festival is celebrated in which among the following states of India? [A]Jammu & Kashmir [B]Himachal Pradesh [C]Punjab [D]Uttarakhand

4. Where is the main bench of National Green Tribunal ? [A]Lucknow

[B]Delhi [C]Bhopal [D]Bangalore

5. Consider the following statements about the Antyodaya Anna Yojana (AAY): 1. The food grains included in this scheme are ONLY Rice and Wheat 2. Any BPL family is eligible to get 35 kg grains under AAY every month 3. Central Government bears all the costs including the Distribution Costs Which among the above statements is/ are correct? [A]Only 1 & 2 [B]Only 2 & 3 [C]1, 2 & 3 [D]Only 1

6. Consider the following statements about the GST council in the Constitution 115th Amendment Bill: 1. GST Council is to be headed by finance minister with members from states 2. GST Council is to make recommendations the taxes to be levied, goods to be exempted, GST rate etc. 3. GST Council is to adjudicate any dispute or complaint Which among the above statements is / are correct ? [A]Only 1 & 2 are correct [B]Only 2 & 3 are correct [C]Only 1 is correct [D]All are correct

7. Consider the following statements about the Saraswati Samman of KK Birla Foundation: 1. The Award is annual 2. Jury is headed by a former Chief Justice of India 3. Selects only Indian Citizens 4. Selects writers from all Indian Languages Which among the above statements is / are correct? [A]1 [B]1 & 2 [C]1, 2 & 3 [D]1, 2, 3 & 4

8. What name has been given to the Elected House of the Territorial Administration as per the recent tripartite pact signed for Gorkhaland Territorial Administration? [A]Sabha [B]Samiti [C]Council [D]Assembly

9. Who among the following is known for the famous quote an uncontrolled pen serves but to destroy.? [A]Jawahar Lal Nehru [B]Mahatma Gandhi [C]Leo Tolstoy [D]Rabindranath Tagore

10. Before it was transferred to Agriculture Insurance Company of India Ltd, the National Agricultural Insurance Scheme was being implemented by which among the following companies? [A]General Insurance Corporation of India [B]Oriental Insurance Company Ltd.

[C]New India Assurance Company Ltd. [D]National Insurance Company Ltd

11. Income generated from Tourism can be placed in which among the following? [A]Invisible Import [B]Invisible Export [C]Visible Import [D]Visible Export

12. Which among the following airlines of India recently joined Arab Air Carriers Organisation (AACO) as the first Partner India Airline of this regional airline association? [A]Air India [B]Jet Airways [C]IndiGO [D]SpiceJet

13. Christine Lagarde, the new MD of IMF belongs to which among the following countries? [A]France [B]Italy [C]Poland [D]Germany

14. Gir Kesar , which has been recently given the Geographical Indication (GI) tag, is a famous variety of which among the following? [A]Saffron [B]Pepper [C]Mango [D]Banana

15. Which among the following states of India is running the Dhanwantari Yojana in the healthcare sector? [A]Haryana [B]Rajasthan [C]Madhya Pradesh [D]Uttar Pradesh