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WEST BENGAL CO-OPERATIVE SERVICE COMMISSION

SPECIAL PAPER_GBA_ADVT. 01/2013_EXAM. DATE 11/08/2013
PAPER-II
GENERAL BANKING AWARENESS CODE NO: 0113102
DO NOT OPEN THIS BOOKLET UNTIL YOU ARE ASKED TO DO SO
BOOKLET FOR OBJECTIVE TYPE TEST
Answer all the Questions
Full Marks: 100 Time Allowed: 1 Hour
Roll No.

GENERAL INSTRUCTIONS
Candidates should read the following instructions carefully before answering the questions:-
1 Verify the seriality of the page numbers first and bring any discrepancy to the Invigilators Notice at once.
Write your roll number and put your signature in the space provided for in the OMR Answer Sheet against
item nos. 3 and 6.
2. Before you proceed to mark in the Answer Sheet the response to various items viz. [a], [b], [c] or [d]
corresponding to those in the Test Booklet, candidates will have to fill in some particulars in the Answer
Sheet as per instructions contained in the Admit Card. All the boxes and all the entries in the Answer
Sheet must be filled up using Black Ball-Point Pen only.
3. All the questions are of Multiple Choice answer type. Only one of the 4 probable answers [a], [b], [c] or [d]
must be darkened in the Answer Sheet as per instructions printed on the Admit Card and the OMR Answer
Sheet. DO NOT DARKEN MORE THAN ONE CIRCLE FOR ANSWERING A PARICULAR QUESTION
FOR IT WILL BE TREATED AS A WRONG ANSWER.
4. There will be negative marking for each wrong answer.
5. There are blank pages at the end of this Booklet for rough work. Roll. No. must be written on each blank
sheet used for Rough work. The sheets should not be torn out of the Question Booklet.
6. The OMR Answer Sheet alongwith the Question Booklet must be handed over to the Invigilator
before leaving the Examination Hall. The candidates are allowed to retain the Question Booklet.
7. No candidate will be allowed to leave the Examination Hall until the examination is over.
8. Please do not fold, scratch, scrimp or tear any portion of the Answer Sheet by any chance as this will render
the Answer Sheet unsuitable for computer evaluation. Keep the Sheet away from gum.
9. Please ensure that the blank dotted line along the left side of margin of side 1 as also the right side of side 2
is not damaged in any way as it may affect the computer evaluation correctly.
10. If error is detected in any particular question the candidates are advised not to attempt the same. The
Commission do not award any marks to questions having any type of error.

Please Turn Over

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1 Relationship between performance of
agriculture and rural poverty was first
demonstrated by
a) Dr. M.S. Swaminathan
b) Dr. M.S Ahluwalia
c) Dr. M.S. Gill
d) None of the above

6 A bank as a business entity falling within
the category of:
a) A service sector industry
b) A business organization with
multifaceted role
c) An institution empowered by the
Govt. to hold public deposit and
carry on credit business
d) A financial institution
2 Micro credit operation is believed to
support poverty elevation initiatives
through:
a) Improving purchasing power of
poor
b) Cultivating savings habit among
poor people
c) Empowering poor people to
participate in production function
d) None of the above
7 Major forms of rural credit classified on
the basis of period are:
a) Two
b) Three
c) Five
d) Many
3 PURA model is precisely :
a) A development hypothesis
b) An economic development scheme
c) A rural development model
d) None of the above
8 Loan provided to a farmer by a bank
against pledge of cold store bond should
be categorized as
a) Consumption loan
b) Agricultural marketing credit
c) Crop loan
d) None of the above
4 Integration of Biological and ecological
process is the major principles of:
a) Sustainable development
b) Poverty eradication
c) Economic growth
d) None of the above
9 Which one of the following is an
example of Non-Fund based credit?
a) Temporary loan against FDR
b) Bank guarantee limit
c) Cash credit limit
d) None of the above
5 Growth in per capita income of a country is
the indicator of
a) Economic development
b) Economic growth
c) Increase in Purchasing Power
Parity
d) None of the above
10 Which one of the followings is one of the
major characteristics of a good credit?
a) Repayable within 3 to 5 years
b) Borrower is well known
c) The credit is purpose specific
d) Credit is secured by a security
valued at 150% of the loan
amount




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11 Authorities of Reserve Bank of India with
regards to transactions in foreign exchange is
described in sec___ of RBI Act. 1934
a) 17
b) 40
c) 41
d) None of the above
16 Which of the following services a bank
cannot provide?
a) Issuing guarantee against any
promise of payment
b) Safe custody of valuable articles
c) Transfer of fund across any
geographical area
d) Reaching valuable documents of any
customer from one place to another

12 Role of State Level Bankers Committee is:
a) Coordinating operations of different
banks operating in a state
b) Issuing license for opening of bank and
its branch
c) Spokesman of bankers
d) None of the above
17 What is meant by the term Liability-Asset
transformation
a) Liabilities of a business organization
are transformed into assets after
taking loan from bank.
b) Banks take assets of borrowers and
thus increase its assets
c) By lending a bank converts its assets
into liabilities as the bank ventures
risk
d) Through lending a bank converts its
financial liabilities (deposit) into
financial assets (advance)
13 Business transferred from RBI to NABARD is
described in sec ___ of NABARD Act 1981
a) 18
b) 35
c) 60
d) 42 to 44
18 Which one of the following products of a
bank is by nature different from others?
a) Agricultural Credit Limit
b) Cash Credit Limit
c) Personal Loan Limit
d) Bank Guarantee Limit

14 Which one of the followings is not a function
of Reserve bank of India?

a) Issuing bank notes
b) Lender of the last resort for banks
c) Borrowing from World Bank for
government projects.
d) Custodian of foreign exchange
19 Millennium Development Goals (MDG)
(2000) were adopted by:
a) General Assembly of United Nations
b) The World Bank
c) Asian Development Bank
d) Planning Commission of India
15 Operations of all banks including cooperative
banks are governed by RBI under the provision
of
a) RBI Act 1934
b) Banking Regulations Act 1949
c) Banking Corporations Act 1990
d) All of the above
20 Which of the following activities is not
considered as Agri-allied activity for a bank
loan?
a. Rearing of poultry birds
b. Fishery
c. Medicinal Plant Cultivation
d. Cattle rearing


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21 Cooperative banks are established under the
provision of
a) Banking Regulations Act 1949
b) Cooperative Societies Act of
respective states
c) NABARD Act 1981
d) Banking Corporations Act 1990

26 In which of the following business
organization liabilities of the owners is
unlimited?
a) A private limited company under
Companies Act 1956
b) A Cooperative Society under WBCS
Act 2006
c) A Public Limited Company under
Companies Act 1956
d) A Partnership Firm under Indian
Partnership Act 1932
22 Total Financial Inclusion Program of Govt. of
India aims at:
a) Creating a branch of a nationalized
bank at each village
b) Bringing 100% people under banking
system
c) Giving loan to every farmer and rural
entrepreneur
d) None of the above
27 Agricultural Technology Management
Agency (ATMA) is mandated for agricultural
development through:
a) Infrastructure development
b) Development of marketing system
c) Innovation of new technology
d) Reforming and reorienting
agricultural extension
23 Which of the followings is not a contract?
a) An agreement to sale a plot of land
b) An agreement of supply and purchase
c) A loan agreement between borrower
and a bank
d) A written commitment of
unconditional donation
28 Which of the following abbreviated names of
cooperative societies indicate that it is in the
tribal area?
a. PACS
b. PAMS
c. LAMPS
d. ECCS
24 Which one of the national level organizations
involved in cooperative movement is not a
cooperative?
a) NAFED
b) TRIFED
c) NCDC
d) All are cooperatives
29 Opportunity cost of capital, an important
parameter in project economics is:
a) Average cost incurred to resource
capital for the project
b) Money value that is likely to reduce
during the period from investment to
pay back
c) Earnings that could have been
obtained from foregone options
d) None of the above
25 Why Rochdale Equitable pioneers are famous
worldwide?
a) They are the innovators of handloom
b) They are first cooperators in the world
c) They documented exploitation of
workers by mill owners
d) They formed the first cooperative
society of weavers
30 By definition a project is a temporary
endeavourer towards creation of a unique
product or service. What is meant by
temporary here?
a) The project result would not sustain
for ever
b) The project has a definite closing
date
c) The bank loan must be repaid in time
d) All of the above

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31 Which of the following loans can be
considered as agricultural loan doubtlessly?
a) Loan against fixed deposit receipt
b) Loan against landed property
c) Loan against warehouse or Cold Store
Bond
d) Loan against valuables e.g. Ornaments
etc.
36 What are the prime areas where cooperation
has a role for benefit of urban population?
a) Loan at reasonable rate of interest for
low income groups
b) Micro finance to poor section
c) Supply of quality consumables at
reasonable cost
d) All of the above
32 Loan asked for cultivation of floricultural
crops should be categorized as
a) Short term crop loan
b) Medium term horticulture loan
c) Long term loan
d) It would depend upon projected return
37 Kissan Credit Card allows a limit to a farmer
little more than the estimated crop loan
amount; why?
a) To accommodate contingency
requirement of the farmer up to
certain limit
b) To allow farmer to experiment on
new technology
c) To accommodate price escalation
of inputs
d) The statement given is not true
33 Most important managerial skill of a retail
banker is:
a) Conceptual skill
b) Human skill
c) Technical skill
d) None of the above
38 SARFAESI Act has been framed to:
a) Strengthen recovery mechanism
b) Easing disposal of mortgaged assets
to recover bad debts by banks
c) To reduce NPA of Banks
d) None of the above
34 Latest version of West Bengal Cooperative
Societies Act is:
a) WBCS Act 1983
b) WBCS Act 2006
c) WBCS Act 2009
d) WBCS Act 2011
39 Cooperative credit structure in West Bengal
is :
a) Two tire system
b) Three tire system
c) Multi tire system
d) Centralized system
35 Horticultural produces are processed to:
a) Enhancing shelf life of the produce
b) Preserving food value of the produce
with altered physical and chemical
properties
c) Adding value on the produce
d) None of the above is correct
40 A farmer enjoys credit on purchase of input
from input dealers. But this is not considered
as agricultural credit because:
a) It bears no interest
b) It is not available to all and not
guided by any rule or norm
c) The credit is given by the trader to
increase his sale of tradable inputs.
Not to financially support the farmer
d) None of the above


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41 Ideal management approach of a modern
bank is:
a) Scientific approach
b) Human relation approach
c) System approach
d) Bureaucratic approach
46 Which one of the following is not an
approved source of fund for a cooperative
society?
a. Share Capital
b. Undisbursed Profit
c. Public Deposit
d. Loan from Public Financial
Institutions
42 What is meant by Limited Liability?
a. That the liability of the organization is
limited to the extent of its Paid Up
capital
b. That the liability of the organization is
limited to the extent of its Net Worth
c. That liability of its share holders is
limited to the face value of shares held
d. None of the above
47 Which one of the following is a dependable
indicator of soil health of an agricultural
holding
a) NPK Status
b) Level of Organic Carbon
c) Soil pH
d) Electrical Conductivity
43 Management structure of cooperative credit
system in West Bengal is:
a) Centralized structure
b) Decentralized structure
c) A judicious mixture of centralization in
a federal manner
d) None of the above
48 Which one of the following is not a cause
but a consequence of Globalization?
a. Deregulation abroad
b. Integration of Markets
c. Technology and know-how
d. Greater Risk Exposure

44 Which one of the following is not eligible for a
term loan by a bank?
a) Establishing a cold store
b) Establishment of agricultural input
shop
c) Purchase of agricultural land
d) Purchase of tractor
49 BangiyaGraminBikash Bank is a
a) Cooperative Bank
b) Commercial Bank
c) Regional Rural Bank
d) Fully owned unit of NABARD
45 Tangible Net worth of a business organization
is actually:
a. Sum of Paid up Share Capital and
Reserve and Surplus
b. Sum of Paid Up Capital and Reserve
and Surplus Minus Intangible Assets
c. Paid Up Capital Plus Accumulated
Profit (Loss)
d. Only Paid Up Capital

50 Threshold Yield is a term associated with
a. Assessment of Crop Loan Need
b. Measurement of Soil Fertility
c. Agricultural Insurance
d. Yield Forecasting