Banking and Finance Practice test-4

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11.

PRACTICE BITS SET - 2

Central Bank of the Country provides loan to
1) People of the country
2) Primary agricultural cooperative credit societies
3) Commercial banks
4) All of these
5) None of these
Which one of the following banks creates credit?
1) Commercial Banks
2) Land Mortgage Banks.
3) Industrial Development Banks
4) Reserve Bank of India 5) Local Ara Banks
When a country devalues its currency, its effect would
be
1) Imports become cheap and exports become costly
2) Imports become costly and exports become cheap
3) Imports and exports both become cheap
4) Imports and exports both become costly
5) None of these
The Government has decided to constitute Financial
Inclusion Fund (FIF) on the recommendation of
the committee on Financial Inclusion that is headed
by
1) C.Rangarajan
2) S. Subbarao
3) N.V.S. Reddy
4) M.S. Ahluwalia
5) K.C. Chakraborty
Minimum Alternate Tax is levied on
1) Gross profits of a firm
2) Reserves of a firm
3) Book profit of a firm
4) Deemed exports
5) All of these
Which sector contributes maximum to the gross
domestic savings of the country?
1) Public Sector
2) Public Sector Undertakings
3) Private Corporate Sector
4) Household Sector
5) Agriculture sector
The 12TH five year plan of India is for the five years
ranging from
1)2009-2014
2)2008-2013
3) 2012-2017
4) 2006-2011
5) None of these
Private equity investors, invest in a company based
mainly on
1) The age of the company
2) The location of the company
3) The activity undertaken by the company
4) The credibility and the valuation of the company
5) The existing profitability of the company
The cabinet committee recently approved the Atal
Pension Yojana a scheme for the welfare of the people
of India. Who amongst the following will get the
benefit of the scheme?
1) Mothers and pregnant women
2) Children up to 12 years of age
3) Youth
4) Old and Senior Citizen
5) All the above
The Reserve Bank does not have an office in
1) Kanpur 2) Jaipur
3) Lucknow 4) Bhopal
5) Gulbarga
Which of the following organisations prepares rural
credit plans on annual basis for fall districts in India,

which in turn form the base for annual credit plans of

all rural financial institutions?
1) SIDBI
2) NABARD
3) RBI 4) IBA
5) BSE
12. Which of the following terms is used in the field of
economics?
1) Adiabatic
2) Bohr Theory
3) Plasma
4) Barter System
5) Viscosity
13. Which of the following NOT a Poverty Eradication
Programme launched by the Govt. of India?
1) Swarnajayanti Gram Swarozgar Yojana
2) Jawahar Gram Samridhi Yojana
3) National Social Assistance Programme
4) AADHAR
5) National Family Benefit Scheme
14. Fiscal Drag expresses relationship between
1) Inflation and tax revenues under progressives taxation
2) Tax rates and tax revenues
3) Inflation and tax rates
4) Progressive taxation and tax burden
5) All of these
15 The proposed All-India Goods and Services Tax
(GST) shall subsume :
1. VAT
2. CENVAT 3. Central Sales Tax
4. Service Tax
Which of the following statements is/are correct ?
1) 1, 2, 3 only
2) 1, 2, 4 only
3) 1 and 2 only
4) 1 & 2 only
5) All 1, 2, 3 & 4
16 Liquidity adjustments facility of the RBI includes use
of
1. Repo & revese Repo 2. Selective controls
3. Market stabilization
4. Statutory Liquidity Ratio
Select the correct answer from the codes given below
1) Only 1
2) 1 and 3 only
3) 1,2, 3 and 4
4) 1 and 4
5) 1, 2, 4 only
17. The base rate of commercial banks is determined by:
1) RBI
2) Ministry of
Finance
3) Market Forces and cost of banks
4) Indian Bankers Association
5) SEBI
18 The objective of the Golden Handshake scheme was
to
1) Stabilize the prices of gold in the market
2) Improve the labour-management relations in industrial
organizations
3) Close the sick industrial units
4) Reduce the burden of overstaffing in public
enterprises.
5) None of these
19. Consider
the
following
regarding
Rural
Infrastructure Development Fund (RIDF)
1. The Government of India has set up the (RIDF) in
1995 through contribution from commercial banks
to the extent of their shortfall in rural industrial
lending.

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Banking and Finance Practice test-4

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2. The fund has continued with its corpus being

announced ever year in the Budget.
Which of these statements is/are correct ?
1) Only 1
2) Only 2
3) Both 1 and 2
4) Neither 1 nor 2
5) Either 1 or 2
Which of the following statements is/are correct about
the Rashtriya Swasthya Bima Yojana in light of
recent development :
1. RSBY was extended to include workers in the IT
sectors recently
2. The premium for the insurance scheme will be paid
by the central and state governments in the ratio of
75:25 excluding the North Eastern states and J &
K.
3. Beneficiaries under RSBY are entitled to coverage
up to Rs. 30,000 for most of the diseases that
require hospitalization.
1) Only 1
2) Only 2 and 3
3) Only 3
4) 1 and 2 only
5) All 1, 2 & 3
Financial Literacy on wheels is an investor
awareness campaign launched by which of the
following in association with Indian, Railway
recently?
1) RBI
2) NSE
3) SEBI
4) BSE
5) IBA
Consider the following regarding Non Banking
Finance Companies (NBFCs):
1. NBFCs as a whole account for 11.2 percent of
assets of the total financial system.
2. With the growing importance assigned to financial
inclusion, NBFCs have come to be regarding as
important financial intermediaries particularly for
the small scale and retail sectors.
Which of these statements is/are correct?
1) Only 1
2) Only 2
3) Both 1 and 2
4) Neither 1 nor 2
5) Either 1 or 2
Consider the following regarding Swabhiman
Programme
1. Swabhiman programmes takes, off on the idea of
financial inclusion proposed and developed in the
Rangarajan Committee Report
2. Swabhiman launched on 10th February 2001.
Which of these statements is/are correct?
1) Only 1
2) Only 2
3) Both 1 and 2
4) Neither 1 nor 2
5) Either 1 or 2
Consider the following :
1. The insurance sector was opened up with the
enactment
of
Insurance
Regulatory
and
Development Authority Act, 1999
2. IRDA has its head office at Hyderabad.
Which of these statements is/are correct?
1) Only 1
2) Only 2
3) Both 1 and 2
4) Neither 1 nor 2
5) Either 1 or 2
If demand increases in a market this will usually lead
to:
1) A higher equilibrium price and output
2) A lower equilibrium price and higher output
3) Lower equilibrium price and output

4) A higher equilibrium price and lower output

5) None of these
26. Which of the following is an example of the
instrument of Money Market in India ?
1) shares of blue chip companies
2) certificate of deposits issued by banks
3) Gold and Gold Bonds
4) National saving certificates
5) Mutual Funds
27. A Hard Currency is a currency :
1. Which is scarcely available in the international
market
2. Which is generally in demand in international
markets
3. Which can be used for any international
transaction
4. Which is used by IMF
Select the correct answer from the codes given below?
1) All 1,2, 3 and 4
2) 1,2 & 4 only
3) 2 & 3 only
4) 2,3 and 4 only
28. The Government of India has recently banned
Foreign Direct Investment (FDI) in
1) Tobacco (cigarette manufacturing)
2) Telecom
2) FM Radio
4) Defence
5) All of these
29. Net National product is defined as
1) GNP - Depreciation
2) GNP + Depriciation
3) GDP - Net Factor Income from abroad
4) GDP + Net Factor income from abroad
5) None of these
30. Which of the following economists has proposed the
concept of poverty as Capability Deprivation?
1) Amartya Sen
2) Rashuram Rajan
3) Jean Dvre
4)
Suresh
Tendulkar
5) Anand Sinha

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