MCQ for RBI Grade b

If RBI adopts an expansionist open market operation policy, this means that it will (a) openly announce to the market that it will intends to expand credit (b) offer the commercial banks more credit in the open market (c) buy securities from non government holders (d) sell securities in the open market

Q. Which of the following best describes the pattern of age sex structure of a population passing through a stage of high fertility and high mortality? (a) Population pyramid that represents a narrow base and gradually tapering top. (b) The base of the pyramid is of medium size but the middle portion, particularly specified for male population, is enlarged and gradually reduces at he top. (c) Population pyramid that represents a broader base and gently sloping sides. (d) The base of the pyramid is narrower than the immediate higher-age interval and gradually reduces at the top. Heng Seng index : hong kong

RBI Grade B Phase II Finance (Risk Management in Banking Sector). Level of Difficulty - Very High. Q. Which of the following has lowest (among given 4 options) Risk Weight in Calculation of CRAR of Commercial Bank? (a) Deposits placed with SIDBI / NABARD / NHB in lieu of shortfall in lending to priority sector. (b) Claims on commercial banks. (c) Investments in instruments issued by NBFC-ND-SI. (d) Investments in Venture Capital Funds.

RBI Grade B Phase II Finance (Risk Management in Banking Sector). Level of Difficulty - Medium. Q. Banks perform multifarious functions. However financial inter mediation and maturity transformation are by far the most significant activities performed by banks. Banks essentially have a ____liability profile as against an____asset profile. (a) illiquid, illiquid (b) illiquid, liquid (c) liquid, liquid (d) liquid, illiquid

Deposits are banks liabilities...and loans are banks assets. e.g Housing Loan cannot be recovered immediately. So loans get matured slowly and difficult to recover in short span of time

 A P Shah Committee recommends MAT relief to FIIs Minimum Alternate Tax (MAT) should not be imposed on FIIs retrospectively for the period preceding 1st April 2015

 R Gandhi committee of RBI recommends conversion of UCBs into regular banks conversion of Urban Cooperative Banks (UCBs) with business size of 20,000 crore rupees or more into regular banks smaller UCBs with business size of less than 20,000 crore rupees who are willing to convert to Small Finance Banks can apply to the RBI.

Licenses for conversion to operate as UCBs will be issued to well-managed and financially sound cooperative credit societies having a minimum track record of 5years. With the conversion, UCBs will be allowed to grow and proliferate further to meet the objective of financial inclusion.

\ D

E

C

RBI Grade B Phase II (Finance) Level of Difficulty : Medium Q.Which of the following is / are not classified as Financial Regulators in India? 1. Securities and Exchange Board of India 2. Reserve Bank of India 3. Ministry of Finance 4. Ministry of Corporate Affairs 5. IRDA 6. PFRDA (a) Only 3 (b) Only 4 (c) Only 3 and 4 (d) None

D All are the regulator

Credila is a non-banking finance company and was the first Indian Lender to exclusively focus on education loans. It is an associate of_________ a) ICICI Bank b) HDFC Bank c) Bank of India d) State Bank of India e) Canara Bank

B

Q. The buyer of a futures contract: 1. Goes long in the cash market because the contract requires her to take delivery of the underlying asset on the expiry date 2. Goes short in the cash market because the contract requires her to take delivery of the underlying asset on the expiry date 3. Goes short in the cash market because the contract requires her to deliver the underlying asset on the expiry date 4. Goes long in the cash market because the contract requires her to deliver the underlying asset on the expiry date

1

Q. What advantage do over-the-counter derivatives have over exchange-traded derivatives?

1. Over-the-counter contracts are more readily tradable 2. Over-the-counter contracts are always for longer periods 3. There is less risk of default on over-the-counter contracts 4. Over-the-counter contracts are more flexible 4

c

Natural Disaster is one risk that can not be attributed to Anything Thus its aGeneral Risk. As we have seen Crisis at Greece, China or Ireland has impact all Over India so Sovereign Risk is a Global Risk. Current Account Deficit is an indicatore or Macroeconomic health and thus its a

macroeconomic risk, Foreign exchange is Heavily dependent on Market and it affect export import market so its Market risk, Regulation Affect the whole institution whether its banking or Housing risk. So Institutional is under regulatory risk. So A-3 B-4 C-1 D 2 E 5

In budget 2015-2016, the allocation for rural infrastructure development fund (ridf) set up in NABARD stands at A. 18000 crore B.20000 crore C.25000 crore D. 30000 crore

25000 cr

B

According to the World Economic Forum Study which of the following is the world’s biggest employer? a) Indian Railways b) People’s Liberation Army c) TCS d) US department of defense

D

Schemes launched by Prime Minister ≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡ 1. Pradhan Mantri surakshabima yojana Eligibility – age group 18-70 having saving bank account can be enrolled under scheme. Premium – rs 12 per annum Payment mode – through saving bank account of the subscriber Insurance cover- for accidental death- rs 2 lakh, for partial disability rs 1 lakh 2. Pradhan Mantri jeevan jyoti bima yojana Eligibility – age group 18-50 having saving bank account can be enrolled under

scheme. Premium –rs 330 per annum Payment mode – through saving bank account of the subscriber Insurance cover - forrs 2 lakh in case of death due to any reason 3. Atal pension yojana Purpose – pension Age – minimum 18 years and maximum 40 years Fixed pension –Rs 1000 to Rs 5000 per month at the age of 60 years Contribution depends upon your age Government contribution – 50% of your contribution or Rs 1000, whichever is lower Saving bank account is mandatory 4. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Smart Cities Project scope- 100 smart Cities and 500 cities for AMRUT Central allocation –Rs 48000 crore for smart cities and Rs 50000 crore for AMRUT Period – 5 years Smart cities to be selected through City Challenge Competition AMRUT will cover all cities with population more than 1 lakh and above 5. Skill Development Program It will provide training and skill development to 500 million youth of our country by 2020, covering each and every village. 6. Pradhan MantriAwasYojana It is a reformation of the scheme “Housing for All”. The aim of this scheme is to construct more than two crore houses across the length and bredth of the nation. The target beneficiaries of the scheme would be poor and people living under EWS and LIG categories in urban establishments of the country. The government would provide an interest subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 15 years from the start of loan.

The houses under Pradhan MantriAwasYojana would be allotted to preferably the female member of the family. 7. Digital India Aim – To ensure the government services are made available to citizens electronically. Digital India has three core components. These includeThe creation of digital infrastructure, Delivering services digitally, Digital literacy The project is slated for completion by 2019. Monitored and Controlled by - Ministry of Communications and IT 9 Key points of Digital India Programme are as follow• Universal Access to Phones • Broadband Highways • Public Internet Access Programme • e-Governance – Reforming government through Technology • e-Kranti – Electronic delivery of services • Information for All • Electronics Manufacturing – Target NET ZERO Imports • IT for Jobs • Early Harvest Programmes 8. Heritage City Development and Augmented Yojana Amount allocated – Rs 500 Crore City allocated – 12 cities (namely, Ajmer, Amaravati,(Andhra Pradesh), Amritsar, Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal). Aim – To bring together urban planning, economic growth and heritage conservation in an inclusive manner to preserve the heritage character of each Heritage City. 9. Sukanya Samriddhi Account Yojana Investment type- small deposit account Where – post office and selected banks Max number of account- 1 account per girl

Max number of accounts per family – max. 2 girl child Age–from birth till 10 years of girl child Min. deposit –Rs 1000/ per year, further multiple of rs 100 Max. deposit –1.5 lakh/year Interest rate –9.1% of financial year 2014-15. it will change every year Partial withdrawal–50% allowed at the age of 18 years of girl Maturity – 21 years from the date of account open or marriage, whichever is earlier 10. PAHAL scheme Aim - to bring transparency and terminate pilferage from distribution of funds sponsored by Central Government of India.

Assertion (A) : Indirect taxes promote inequalities in the distribution of income. Reason (R) : The poor bear more burden of indirect taxes.

Codes : (A) (A) is true but (R) is false. (B) Both (A) and (R) are true and (R) is the correct explanation of (A). (C) (A) is false but (R) is true. (D) Both (A) and (R) are false

Consider following statements : 1. Credit creation varies inversely with Cash Reserve Ratio (CRR). 2. Credit creation varies positively with Cash Reserve Ratio (CRR). 3. Bond price and interest rate are inversely related. 4. Bond price and interest rate are positively related. Which of the above statements is correct ?

an inferior good is a good that decreases in demand when consumer income rises (or rises in demand when consumer income decreases),

Normal goods are those for which consumers' demand increases when their income increases.

a superior good, one that is often associated with wealth and the wealthy, whereas an inferior good is often associated with lower socio-economic groups.

quantity theory of money 1. the hypothesis that changes in prices correspond to changes in the monetary supply.

tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply

SBI is the agent of RBI in international arena

marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit. That is, it is thecost of producing one more unit of a good. In general terms, marginal cost at each level of production includes any additional costs required to produce the next unit.

MUDRA bank has partnered with how many state and regional level coordinates to reach the last mile financiers for micro business ? A. 19

C

The bank accredited by the Green Climate Fund as an implementing entity for climate change related projects in India ? \ NABARD

A country that has a trade deficit experiences a nominal exchange rate depreciation. As a result Trade deficit will decline

Tendulkar comittiee estimated d new all India poverty line for year 04-05 for rural and urban and whole at? . A- 41.8% for rural 25.7 for urban and 37.2 for whole.

Union Government recently signed a $300 million loan agreement for National Urban Health Mission with ADB. The mission seeks to cover all the cities with a population _. 1) Above 50000

B

Maurice Obstfeld appointed as Chief Economist of which of the following organisation? IMF

RBI recently relaxed Branch Authorisation Policy to allow banks to merge or close branches in urban areas under of the Banking Regulation Act, 1949. SECTION 23

COMMITTEES ON VARIOUS SECTORS OF INDIAN ECONOMY --------------------------------------------------------------------------------AC Shah Committee -- NBFC Bimal Jalan Committee -- Market Infrastructure Instruments Malegam Committee -- Functioning of Micro Finance Birla Committee -- Corporate Governance Kirti Parikh Committee -- Rationalization of Petroleum product prices Chaturvedi Committee -- Improving National Highways in India SR Hasim Committee -- Urban Poverty Abhijit Sen -- Whole sale price index C Ranarajan -- Service Price Index Abid Hussain Committee -- Development of capital Markets Damodaran Committee -- Customer service in Banks Khandelwal Committee -- HR in Commercial Banks Patil Committee -- Corporate Debt VK Sharma Committee -- Credit to Marginal Farmers Sarnagi Committee -- NPA Khanna Committee -- regional rural banks

Dantawala Committee -- Lead Bank Scheme Gadil Committee --Financial Inclusion

Which of the following Indian bank recently signed a $200-million loan agreement with ADB? AXIS

As per recently announced by the Union Government, Handloom Day will be celebrated accross the nation on

7th August

Union Ministry for Minority Affairs launched Nai Manzil Scheme is intended to cover people in between the age group of 17-35 yrs National Income estimates in India is prepared by A. RBI B. C.S.O. C. Finance Ministry D. Planning Commission

Cso

RBI recently notified the Union Budget- 2015-16 Interest Subvention Scheme (ISS) and asked all banks to provide interest concession of 2 percent on short term crop loans of up to . 1) Rs 10 Lakh 2) Rs 5 Lakh 3) Rs 2 Lakh 4) Rs 3 Lakh 5) Rs 1 Lakh

Upto 3 lakhs

Which of the following country named as World Book Capital for 2016 by UNESCO? 1) Buenos Aires 2) Conakry 3) Incheon 4) Wroclaw 5) New Delhi Wroclaw

Surcharge on tax for the income exceeding 10 crores has been increased 1. From 6 to 12% 2. From 6 to 10% 3. From 8 to 12% 4. From 10 to 12% Similar on income exceeding 1 crore

1. From 5 to 10% 2. From 6 to 12% 3. From 5 to 7% 4. From 6 to 9%

Govt proposed to reduce the corporate tax over the next four years, starting from next financial year from 30% to what? 1. 25% 2. 24% 3. 20 % 4. 22%

RBI recently relaxed Branch Authorisation Policy to allow banks to merge or close branches in urban areas under of the Banking Regulation Act, 1949.

Section 23

Under new guidelines issued by CBDT, any person who gives credible inputs against the declared tax defaulter would receive reward as ___ % of tax realised with maximum limit of 15 lakh on reward.

1. 1 2. 5 3. 10 4. 25

D

TOBIN TAX

The tax on foreign exchange transactions was devised to cushion exchange rate fluctuations. The idea is very simple: at each exchange of a currency into another a small tax would be levied - let's say, 0.5% of the volume of the transaction. This dissuades speculators as many investors invest their money in foreign exchange on a very short-term basis. If this money is suddenly withdrawn, countries have to

drastically increase interest rates for their currency to still be attractive. But high interest is often disastrous for a national economy, as the nineties' crises in Mexico, Southeast Asia and Russia have proven. My tax would return some margin of manoeuvre to issuing banks in small countries and would be a measure of opposition to the dictate of the financial markets

7- Points Mission INDRA-DHANUSH Revitalising PSBs 1. Appointments of MD & CEO 2. Bank Bord Bureau 3. Capitalisation- priority will be given to 6-big Size banks Disinvestment - upto 52℅ Need of the hour - 180000 crore 4- Distressed Assets - High rising NPAs Redressal mechanism 5- Empowerment - freedom of Deciding Interest Rates 6- Framework for Performance - incentives to Employees 7- Governance - Person who influence Decision Making - how banks are allowed to Function .