mcq for rbi grade b

8/17/2019 MCQ for RBI Grade b

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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


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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.


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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


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• 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 B!"

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 5-

years.

With the conversion, UCBs will be allowed to grow and proliferate further to meet

the objective of financial inclusion.


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#

$

%


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C


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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


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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

&

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

derivatives?


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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

'

c

Natural Disaster is one risk that can not be attributed to Anything Thus its aGeneral Risk. Aswe 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


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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


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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


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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


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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.


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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 include-

The 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


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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) istrue. (D) Both (A) and (R) are false


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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 goo( that (ecreases in (eman( when

consumer income rises )or rises in (eman( when consumer income

(ecreases*,

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

income increases.


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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

&" the hypothesis that changes in prices correspon( 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

SB! 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. n general terms, marginal cost at

each level of production includes any additional costs required to

produce the next unit.

https://en.wikipedia.org/wiki/Superior_goodhttps://en.wikipedia.org/wiki/Price_elasticity_of_demandhttps://en.wikipedia.org/wiki/Price_elasticity_of_supplyhttps://en.wikipedia.org/wiki/Price_elasticity_of_demandhttps://en.wikipedia.org/wiki/Price_elasticity_of_supplyhttps://en.wikipedia.org/wiki/Superior_good


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MUDRA bank has partnered with how many state and regional level coordinates

to reach the last mile financiers for micro business ?

A. 19


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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


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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 NationalUrban Health Mission with ADB. The mission seeks to cover all the cities with a

population _.

1) Above 50000

B


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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


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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


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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


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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 closebranches 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.


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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, ".#$ of the volume of the transaction. Thisdissuades speculators as many investors invest their money in foreign exchange

on a very short-term basis. f this money is suddenly withdrawn, countries have to

https://en.wikipedia.org/wiki/Foreign_exchange_markethttps://en.wikipedia.org/wiki/Exchange_rate#Fluctuations_in_exchange_rateshttps://en.wikipedia.org/wiki/Exchange_rate#Fluctuations_in_exchange_rateshttps://en.wikipedia.org/wiki/Speculatorhttps://en.wikipedia.org/wiki/Foreign_exchange_markethttps://en.wikipedia.org/wiki/Exchange_rate#Fluctuations_in_exchange_rateshttps://en.wikipedia.org/wiki/Exchange_rate#Fluctuations_in_exchange_rateshttps://en.wikipedia.org/wiki/Speculator


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drastically increase interest rates for their currency to still be attractive. %ut high

interest is often disastrous for a national economy, as the nineties' crises in

&exico, outheast (sia and )ussia have proven. &y tax would return some

margin of manoeuvre to issuing ban*s in small countries and would be a measure

of opposition to the dictate of the financial mar*ets

https://en.wikipedia.org/wiki/Interest_ratehttps://en.wikipedia.org/wiki/Liquidity_crisishttps://en.wikipedia.org/wiki/Central_bank#Currency_issuancehttps://en.wikipedia.org/wiki/Financial_markethttps://en.wikipedia.org/wiki/Interest_ratehttps://en.wikipedia.org/wiki/Liquidity_crisishttps://en.wikipedia.org/wiki/Central_bank#Currency_issuancehttps://en.wikipedia.org/wiki/Financial_market


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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 .

mcq for rbi grade b

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