Civils Prelims 2019 Model Questions
TEST 6 (30 . 04. 2019 )
Prepared
by :Praturi Potayya Sarma
Questions
based on BANKING / ECONOMY (second part)
1) In the
abbreviation NCFE, the letter F stands for what ?
a) Final
b) Financial ( NCFE: National
Centre for Financial Education )
c) Food
d) Framework
Ans : b
2) Who set
up NCFE for implementation of the National Strategy for Financial Education
(NSFE)?
a) RBI
b) SEBI
c) IRDAI
d) PFRDA
and All the above
Ans : d
3) The
Reserve Bank holds 560.32 tonnes of gold, of which 268.01 tonnes are held
overseas in safe custody with the Bank of England and the Bank for
International Settlements (BIS). Gold as a share of the total foreign exchange
reserves in value terms (USD) stood at about ____ per cent as at end-March,
2018.
a) 5.0
b) 0.1
c)0.2
d) 0.3
Ans : a
4) The
demands placed on the foreign exchange reserves may vary widely depending upon
a variety of factors including which of the following ?
a) the
exchange rate regime adopted by the country,
b) the
extent of openness of the economy,
c) the size
of the external sector in a country's GDP
d) the
nature of markets operating in the country.
And All the above
Ans : d
5) RBI Act broadly
permits which investment categories, with reference to foreign exchange ?
a) deposits
with other central banks and the Bank for International Settlements (BIS);
b) deposits
with overseas branches of commercial banks
c) debt
instruments representing sovereign/sovereign-guaranteed liability with residual
maturity for the debt papers not exceeding 10 years
d) other
instruments / institutions as approved by the Central Board of the Reserve Bank
in accordance with the provisions of the Act
and All the above
Ans : d
6) CRILC captured all
exposures of banks above Rs 50 million. In the abbreviation CRILC, the
letter R stands for what ?
a) Repository ( CRILC:
Central Repository of Information on Large Credits )
b) Receipt
c) Refuse
d) Refrain
Ans : a
7) IBC provides a time-bound
legal framework for dealing with debt resolution _________ .
a) if the lenders cannot sew
up a resolution quickly.
b) for shares
c) for debentrues
d) for bonds
Ans : a
8) When RBI constituted an
Internal Advisory Committee (IAC) to
determine cases to be referred under IBC ?
a) 2017
b) 2010
c) 2009
d) 2007
Ans : a
9) What is SEEA ?
a) System of Environmental
– Economic Accounting
b) It is a framework that
integrates economic and environmental data to provide a more comprehensive and
multipurpose view of the interrelationships between the economy and the
environment
c) It contains the
internationally agreed standard concepts , definitions , classifications
accounting rules and tables for producing internationally comparable statistics
and accounts
d)All the above
Ans : d
10) A national level
entrepreneurship awareness campaign, ‘Udyam Abhilasha’ who launched ?
a) SIDBI
b) PFRDA
c) ISRO
d) DAE
Ans : a
11) Recently, Insolvency Law Committee ( ILC) recommended
which of the following ?
a) adoption of the
UNCITRAL Model Law of Cross Border Insolvency, 1997
b) purchasing of lands
c) purchasing of gold
d) purchasing of silver
Ans : a
12) Who laid the
foundations of ‘endogenous growth theory’ in 1990 ? Give details.
a) Romer
b) His research
demonstrated that importance of investing in people and ideas to foster growth,
when economists had previously believed that it was impossible to influence the
rate of innovation in technology
c) It shows how
technological development is spurred by deliberate policy making and promotes
reserach, growth and education
d) All the above
Ans : d
13) Who is called as
father of ‘Bhakra Dam ‘ ? (He conceived the idea of Bhakra Dam way back in 1923
) .
a) Sir Chhotu Ram
b) M S Swsaminathan
c) Verghese Kurian
d) Vikram Sarabhai
Ans : a
14) For which agricultural
reforms Sir Chhotu Ram had to be appreciated ?
a) Punjab Land Revenue
(Amendment ) Act, 1929
b) Punjab Regulation of
Accounts Act, 1930
c) Punjab Debtors
Protection Act 1936
d) Punjab Relief of
Indebtedness Act, 1943
and All the above
Ans : d
15) How Human Capital
Index and Human Development Index are
different ?
a) HCI excludes per capita
income , whereas HDI uses it
b) HCI measures the index
outcomes for each country as fraction of maximum value of 1.
c) Two significant changes
from HDI are exclusion of income component and Introduction of quality
adjustment in learning
d) All the above
Ans : d
16) What are components of
Human Capital Index (HCI ) ?
a) Survival , as measured
by under – 5 mortality rates
b) Expected years of
Quality – Adjusted School which combines information on the quantity and
quality of education
c) Health environment
using two proxies of (i) adult survival rates and (ii) the rate of stunting for
children under age 5
d) All the above
Ans : d
17) What is ‘RuPay’ ?
a) a new card payment
scheme
b) It has been conceived
by NPCI to offer a domestic, open-loop, multilateral card payment system
c) It will allow all
Indian banks and financial Institutions in India to participate in electronic
payments
d) All the above
Ans:d
18) USSD based Mobile
Banking offers which basic Banking facilities ?
a) Money Transfer, Bill
Payments,
b) Balance Enquiries,
c) Merchant payments
d) All the above, on a
simple GSM (Global System for Mobile Communications) based Mobile phone,
without the need to download application on a Phone as required at present in
the IMPS (Immediate Payment Service) based Mobile Banking.
Ans:d
19) How many types of
‘financial markets ‘ are there in India ?
a) Credit market
b) Equity and term lending
market
c) gilt-edged securities
market
d) insurance market;
mutual funds market ; consumer finance market
and All the above
Ans:d
20) What are the
characteristics of ‘cheque truncation’ ?
a) It is an electronic
image of a paper cheque
b) only the banks involved
and the clearing house can truncate a cheque . The drawer/holder of a cheque
cannot truncate a cheque
c) the electronic image of
the ‘cheque truncation’ will substitute the physical cheque from the point and
time of truncation onwards
d) Truncation is to be
done only during the course of a clearing cycle to reduce the time taken for
realization
and All the above
Ans:d
21) There are number of security features with regard to Aadhaar linked
financial transactions. Aadhaar linked financial transactions pass through
multi-entity model. What are they ?
a) Bank (AUA- Authentication User
Agency)
b) NPCI (ASA- Authentication
Service Agency)
c) UIDAI (Authentication/Biometric Data Custodian)
d) All the above
Ans :d
22)
Central Government proposed to merge
Government Savings Certificates Act, 1959 and Public Provident Fund Act, 1968
with the Government Savings Banks Act, 1873. What is the main objective of the common act ?
a) to bring uniformity in the provisions of
different small savings schemes presently governed by the three Acts.
b) for tax evasion
c) to control savings
d) audit purpose
Ans :a
23) Under the Reforms Agenda, PSBs have committed to Easy Access and
Service Excellence (EASE) for customer comfort, through which of the following
?
a) courteous staff
b) pleasing ambience
c) customer amenities
d) digital banking
Ans :e
24) The Government has introduced the Kisan Credit Card (KCC) Scheme, which
enables farmers to purchase agricultural inputs such as seeds, fertilisers,
pesticides, etc. and draw cash to satisfy their agricultural and consumption
needs. The KCC Scheme has since been simplified and converted into ATM enabled
RuPay debit card with, inter alia, ___________
a) facilities of one-time documentation
b) built-in cost escalation in the limit
c) any number of drawals within the limit, etc.
d) All the above
Ans :d
25) RBI
has conveyed to Banks to waive margin/security requirements of agricultural
loans upto Rs.1,00,000/-. Banks were advised by the RBI to dispense with the
requirement of ‘No Due Certificate’ for small loans up to Rs.50,000/- to whom ?
a)
small farmers
b)
marginal farmers
c)
share-croppers and the like
d) All the above
Ans :d
26) To
bring small, marginal, tenant farmers, oral lessees, etc. into the fold of
institutional credit, which of the following
have been promoted by banks ?
a) Joint
Liability Groups (JLGs)
b) JLFs
c) Consortium of banks
d) IBA
Ans :a
27) Letters of Credit (LoC) are issued
under which of the following ( Foreign
trade purpose )?
a) UCPDC
(Uniform Customs and Practice for Documentary Credits)
b) RBI Act
c) Exchange Control Manual
d) Transfer of Property Act
Ans :a
28) Uniform Customs and Practice for
Documentary Credits (UCPDC) is published by whom ?
a) Indian Chamber of Commerce
b) International Chamber of Commerce
c) RBI
d) World Bank
Ans :b
29) Under ‘Letter of Credit’. issuing bank ______________.
a)
acts as per the request of the opener
b)
undertakes to pay the exporter’s bill provided terms and conditions of
the credit are complied with
c)
promises to pay the bill
d) All the above
Ans :b
30) Bank issuing ‘letter of credit’ is
called as what ?
a) issuing bank
b) confirming bank
c) advising bank
d) co-operative bank
Ans : a
31)Bank which advises exports, under
‘letter of credit’ is called
a) issuing bank
b) advising bank
c) confirming bank
d) regional bank
Ans :b
32) A bank liable to pay under ‘letter
of credit’ is called as what ?
a) paying bank
b) foreign exchange bank
c) confirming bank
d) debit bank
Ans : a
33)
What is ‘Hedging’ ?
a) The activity of undertaking a
derivative transaction to reduce an identifiable and measurable risk.
b) For the purpose of these
directions the relevant risks are commodity price risk and freight risk.
c) Both (a) & (b)
d) Exposure to danger
Ans :c
34) Which of the following is correct
about SBLC ?
a) Banks are permitted to issue
Standby Letters of Credit (SBLC) / Guarantees, for a maximum period of one
year, on behalf of their clients in lieu of making a remittance of margin money
for commodity hedging transactions entered into by their customers.
b) Banks should ensure that these
SBLCs / Guarantees are used by their clients for the intended purposes
c) Both (a) & (b)
d) Co-operative societies should
issue SBLC
Ans :c
35) ‘Bhavantar Bhugtan Yojana’ (purpose:
to hedge price risk in farming ) is introduced by which state ?
a) Assam
b) Madhya Pradesh ( ‘bhav’ means
rates/prices for items like rice,wheat etc.)
c) Nagaland
d) West Bengal
Ans : b
36) Which bank has committed Rs.156
crores to fund first Sewage Treatment Plant (STP) to be construced at Varanasi
(Uttar Pradesh)?
a) Indian Bank
b) Yes Bank( ‘sewage’: relating to drainage water, normally released in to rivers and canals without purifying )
c) Indian Overseas Bank
d) Federal Bank
Ans : b
37) Global Hunger Index is released by
which institute ?
a) WTO
b) UNESCO
c) International Food Policy Research
Institute, Washington
d) UNIDO
Ans : c
38) The Paradise Papers include which of
the following ?
a) loan agreements
b) financial statements
c) emails, trust deeds
d)
paperwork over nearly 50 years from inside
and All the above ( they are nearly 7 million )
Ans : d
39) Project 'Sashakt' -- to deal with
Non-performing Assets in the country's banking system, Piyush Goyal said. The
five-pronged strategy,under this project,
includes which of the following ?
a) SME resolution approach
b)
bank-led resolution approach,
c) AMC/AIF led resolution approach,
d) NCLT/IBC approach, and asset-trading
platform
and All the above
Ans : d
40) In the abbreviation PCA, the letter
P stands for what ?
a) Pay
b)
Prompt ( PCA:Prompt Corrective Action )
c) Push
d) Plus
Ans : b
41) “Pradhan Mantri Annadata Aay
SanraksHan Abhiyan’ (PM-AASHA) Scheme is
aimed at ensuring remunerative prices to the ______for their produce as
announced in the Union Budget for 2018.
a) industrialists
b) farmers
c) doctors
d) nurses
Ans : b
42) What is ‘Health insurance’ ?
a) It is a type of insurance
coverage that pays for medical and surgical expenses that are incurred by the
insured.
b) Health insurance can either
reimburse the insured for expenses incurred from illness or injury or pay the
care provider directly.
c) Health insurance is often
included in employer benefit packages as a means of enticing quality employees
d) All the above
Ans : d
43) Which of the following is correct ?
a) Nostro account : ‘Our account with
you’
b) Vostro account : ‘Your account with
us ‘
c) Loro account: ‘Their account with you
‘
d) All the above (Currency Accounts)
Ans :d
44) What is ‘Mirror Account’ ? Give
details.
a) The account of a foreign bank, as
maintained in the books of a bank in India is called Mirror or Shadow account
b) It is the exact copy of the entries
in Nostro account
c) The mirror account is just like a
cash book maintained by a firm for a bank account where any deposit by the firm
is debited in bank account in the books of the firm and credited by the bank in
the account of the firm, in its books and vice versa
d) All the above
Ans : d
45) Shri Shaktikanta Das,(present Governor, RBI) had previously, served as India’s Alternate Governor in which
of the following ?
a) World Bank,
b) Asian Development Bank (ADB)
c) New Development Bank (NDB)
d) Asian Infrastructure Investment
Bank (AIIB).
And All the above
Ans : d
46) Sovereign Gold Bond Scheme
2018-19 - Series V opened for
subscription for the period from January 14, 2019 to January 18,
2019.Government of India, in consultation with the Reserve Bank of India, has
decided to offer a discount of ₹ 50 per gram less than the nominal value to
those investors applying online and the payment against the application is made
through digital mode. What is the issue price of Gold Bond for such investors?
a)
Rs. 3,164/- (Rupees Three Thousand One Hundred Sixty Four only) per gram
of gold.
b) Rs.5000/-
c) Rs.6,000/-
d) Rs.2000/-
Ans : a
47) The insolvency and bankruptcy
regime, which came into effect in 2016, has been providing which of the
following ?
a) a market-driven,
b) time-bound process for insolvency
resolution of a corporate debtor,
c) helping financial institutions to
clean up their balance sheets
d) All the above
Ans : d
48)
Under project ‘SASHAKT’ an asset management company/ alternative
investment fund (AIF)- led resolution approach to deal with NPA cases of more
than _________.
(a) Rs 100 crore
(b) Rs 200 crore
(c) Rs 300 crore
(d) Rs 500 crore
Ans : d
49) For which bank transactions, quoting
PAN is mandatory ?
a) sale or purchase of any immovable
valued at Rs.5 lakh or more
b) sale or purchase of a motor vehicle (
excluding 2 wheelers)
c) a time deposit , exceeding
Rs.50,000/- in any account with post office savings bank
d) payment to hotels /restaurants for
bills above Rs.20,000 at any one time
and all the above ( as IT Act, Rule 114B)
Ans : d
50)What is Mirror Account ?
a) The account of a foreign bank , as
maintained in the books of a bank in India is called Mirror or Shadow account
b) It is the copy of the entries in
NOSTRO Account
c) The mirror account is just like a
cash book maintained by a firm for a bank account
d) All the above
Ans : d
51) Which of the following says ‘your
account is with us ‘?
a) VOSTRO account
b) NOSTRO account
c) LORO
account
d) All the above
Ans : a
52)What are the objectives of (foreign)
Exchange Control Regulations?
a) conservation of foreign exchange
b) proper accounting of foreign exchange
receipts and payments
c) stabilizing the external value of the
rupee
d) to check smuggling
and All the above(At present it is being regulated
through FEMA, 1999)
Ans : d
53) What is Foreign Exchange ?
a) Foreign currency
b) It includes deposits, credits and
balances payable in any foreign currency
c) it includes drafts, travellers’
cheques, letters of credit or bills of exchange
d) It incudes bills of exchange drawn by
banks but payable in any foreign currency
and All the above
Ans : d
54) A
significant amount of Specified Bank Notes (SBNs) viz.,Rs.500 (old) &
Rs.1000(old) flowed into which of
the following special types of accounts
in 2016 ?
a) Basic Saving Bank Deposit Account (BSBDA);
b) PMJDY Accounts; Kisan Credit Card (KCC);
c) dormant or inoperative accounts; co-operative
banks’ accounts with SCBs;
d) bullion trader/jewellers’ accounts; and loan
accounts.
And All the above
Ans: d
55) The Reserve Bank’s Central Board, at its meeting held recently,
approved the transfer of surplus to the Government of India amounting to Rs. 306.59 billion for the year ended________
.
a) June 30, 2017
b) December 2016
c) March 31, 2017
d) April 30, 2017
Ans: a
56) For
‘Sovereign Gold Bond Scheme 2018-19 Series-I’ which documents can be used for
identification purpose ?
a) passport
b) Permanent Account Number (PAN)
Card
c) Voter's Identity Card
d) Aadhaar card
and All the above
Ans : d
57) What is Sovereign Gold Bond (SGB)? Who is the
issuer?
a) SGBs are government securities denominated in
grams of gold.
b) They are substitutes for holding physical gold.
Investors have to pay the issue price in cash and the bonds will be redeemed in
cash on maturity.
c) The Bond is issued by Reserve Bank on behalf of
Government of India.
d) All the above
Ans : d
58) Why should people buy SGB rather than
physical gold? What are the benefits?
a) The quantity of gold for which the investor pays
is protected, since he receives the ongoing market price at the time of
redemption/ premature redemption.
b) The SGB offers a superior alternative to holding
gold in physical form.
c) The risks and costs of storage are eliminated.
Investors are assured of the market value of gold at the time of maturity and
periodical interest. SGB is free from issues like making charges and purity in
the case of gold in jewellery form.
d) The bonds are held in the books of the RBI or in
demat form eliminating risk of loss of scrip etc.
and All the above
Ans : d
59) Who are
eligible to invest in the SGBs?
a) Persons resident in India as defined under Foreign
Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors
include.
b) individuals, Hindu Undivided Familities (HUFs)
c) trusts, universities
d) charitable institutions
and All the above
Ans : d
60) What is the minimum and maximum limit for
investment?
a) Minimum investment in the Bond shall be one gram
(gold) with a maximum limit of subscription of 4 kg (gold) for individuals
b) 4 kg (gold) for Hindu Undivided Family (HUF) and
20 kg (gold) for trusts
c) Both (a) & (b)
d) 50 Kg gold
Ans : c
61) Which mega health care scheme is approved by the Union Cabinet
recently ?
a) SSA
b) Ayushman Bharat – National Health
Protection Mission / Scheme
c) NUHM
d)NRHM
Ans : b
62) Through whom Global Environment Facility (GEF) and the
World Bank are implementing a new initiative on financing Energy Efficiency
(EE) in MSME Clusters in India to improve EE and reduce Green House Gas (GHG)
emissions from MSMEs utilizing increased commercial financing for EE ?
a) Federal Bank
b) SIDBI and BEE
c) NHB
d) NABARD
Ans : b
63) CGTMSE (Credit Guaranee Fund Trust
for Micro and Small Enterprises )was set up in 2000 by Ministry of Micro, Small
and Medium Enterprises, Government of India (GoI) and SIDBI with a committed
corpus of INR _____ crore to facilitate credit guarantee support to collateral
free / third-party guarantee-free loans to the Micro and Small enterprises, who
are generally considered to be a high risk lending, especially in the absence
of collateral.
a) 500
b) 2500
c) 200
d) 300
Ans : b
64) CGTMSE introduced the Credit
Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) which guarantees
credit facilities up to INR ____ lakh on automated digital platform, extended
by Member Lending Institutions (MLIs) to those MSE loans, which are not backed
by collateral security and / or third-party guarantees.
a) 200
b) 50
c) 20
d) 30
Ans : a
65) Who are eligible for support by
SIDBI under the MSE Refinance Scheme
(MSERS) ?
a) Scheduled Banks (including State
Co-operative Banks, Urban Co-operative Banks,
b) Private Sector Banks, and Foreign
Banks etc.
c)
select Financial Institutions are eligible for support by SIDBI
d) Regional Rural Banks
and All the above
Ans : d
66) When CRILC was set up ? Give
details.
a) CRILC was
set up by the Reserve Bank in 2014
b) It filled a critical gap in addressing the
information asymmetry regarding NPAs at the system level by facilitating
collection of data on all borrowers' credit exposures across the banking system
c) Both (a) & (b)
d) In 1991
Ans : c
67) What is Banks Board Bureau ( BBB ) ?
a) It is a body of eminent professionals
and officials
b) It will recommend names for
appointments in top posts in banks
c) It will be constantly engaging with the Board of
Directors of all PSBs to formulate appropriate strategies for their growth and
development
d) All the above
Ans : d
68) Which 7 trends will define the next
generation banking in India ?
a) Transforming the way we bank ;
‘creative destruction ‘ of banks
b) cashless and branchless banking ;
innovation in ATM usage
c) infrastructure financing ; new models
to serve MSMEs
d) competition and consolidation
and All the above
Ans : d
69) The composition of India’s import
basket has largely been dominated by gold and petroleum products. These two
commodities, with a combined share of close to ______ per cent, have virtually
defined the trajectory of India’s overall merchandise imports. In recent years,
however, electronic goods imports increased from a little over US$ 0.9 billion
in 1993-94 to US$ 51.5 billion in 2017-18, an annual growth rate of over 15.0
per cent
a) 40.0
b) 50
c)60
d) 25
Ans : a
70) For the greater part of 2018, the EMEs faced a
wave of global spillover risks leading to which of the following ?
a) capital outflows,.
b) currency
c) asset price volatility
d) tightened financial conditions
and All the above
Ans : d
71) Which of
the following enabled EME economies to absorb global spillovers ?
a) Strong fundamentals,
b) forex reserve buffers,
c) capital in banking systems
d) prudent macroeconomic policies
and All the above
Ans : d
72) What is ‘teaser rate ‘ ?
a) This is the unofficial term used to
describe housing loans that carry ultra-low fixed rates in the initial years,
but charge market-linked rates thereafter.
b) agriculture loans interest rate
c) motor cycles loan interest rates
d) motor cars loans interest rates
Ans : a
73)What is “systemically important non-banking financial
company” ?
a) It means a non-banking financial
company registered with the Reserve Bank of India and recognised as
systemically important non-banking financial company by the Reserve Bank of
India
b) Any bank
c) Any chit fund company
d) Any super bazar
Ans : a
74) What is a Non-Banking Financial Company (NBFC)?
Give details.
a) A Non-Banking Financial Company (NBFC) is a
company registered under the Companies Act, 1956.
b) It is engaged in the business of loans and advances,
acquisition of shares/stocks/bonds/debentures/securities issued by Government
or local authority or other marketable securities of a like nature, leasing,
hire-purchase, insurance business, chit business but
c) Its business does not include any institution
whose principal business is that of agriculture activity, industrial activity,
purchase or sale of any goods (other than securities) or providing any services
and sale/purchase/construction of immovable property
d) All the above
Ans : d
75) NBFCs are doing functions similar to banks. What
is difference between banks & NBFCs?
a) NBFC cannot accept demand deposits;
b) NBFCs do not form part of the payment and
settlement system and cannot issue cheques drawn on itself;
c) deposit insurance facility of Deposit Insurance
and Credit Guarantee Corporation is not available to depositors of NBFCs,
unlike in case of banks.
d) All the above
Ans : d
76) There are many jewellery shops taking money from
the public in instalments. Is this amounting to acceptance of deposits?
a) It depends on whether the money is received as
advance for delivering jewellery at a future date or whether the money is
received with a promise to return the same with interest.
b) The money accepted by Jewellery shops in
instalments for the purpose of delivering jewellery at the end of the period of
contract is not deposit..
c) It will amount to acceptance of deposits if in
return for the money received, the jewellery shop promises to return the
principal amount along with interest
d) All the above
Ans : d
77) According to which Act the conducting of Chit Fund
business permissible ?
a) The chit funds are governed by Chit Funds Act,
1982 which is a Central Act administered by state governments.
b) Those chit funds which are registered under this
Act can legally carry on chit fund business.
c) Both (a) & (b)
d) Trade Union Act
Ans : c
78) Which month was celebrated as
National nutrition month across the country
, to mark fight against malnutrition ?
a) January , 2018
b) September, 2018
c) February , 2018
d)
May, 2018
Ans : b
79) Under PMFBY , the farmers will be
paid _____ % by insurance companies for the delay in settlement claims beyond
two months of prescribed cut-off date.
a) 6
b) 12
c) 4
d) 9
Ans : b
80) What are the measures recommended
to stabilize rupee ?
a) mandatory hedging conditions for
infrastructure loans through the external commercial borrowings( ECB) route
will be reviewed
b) a 20% exposure limit on investments
by foreign portfolio investors in debt to a single corporate group will be
removed
c) government will permit the
manufacturing sector to access ECBs upto $ 50 mn with residual maturity of one
year instead of three years
d) All the above
Ans : d
81) Reserve Bank of India in parallel which has been
somewhat under-appreciated, viz., the imposition of Prompt Corrective
Action (PCA) on a number of banks whose ________do not meet pre-specified
thresholds
a) capital,
b) asset quality
c) profitability
d) All the above
Ans : d
82) The goal of Basel III is to raise the
______________ of the capital base of banks to withstand unanticipated losses
and to strengthen the overall risk coverage of the capital framework. In addition
to revising the minimum capital ratio requirements for credit risk, Basel III
also introduced a capital conservation buffer (CCB) and a countercyclical
capital buffer
a) quality,
b) consistency
c) transparency
d) All the above
Ans : d
83) Capital Conservation Buffer (CCB) is designed to
ensure that banks build up a capital buffer outside periods of financial stress
that can be drawn down when banks face financial (systemic or idiosyncratic)
stress. Banks which draw down their capital conservation buffer during a
stressed period are required to have a definite plan to replenish the buffer
and face capital distribution constraints. The objective of the countercyclical
capital buffer is to use capital as a ________ aimed at protecting the banking
sector from periods of excess aggregate credit growth, that have often been
associated with the build-up of system-wide risk.
a) macro-prudential instrument
b) negotiable instrument
c) cheque
d) demand draft
Ans : a
84) Prompt Corrective Action frameworks adopt the core
principles of structured early intervention and resolution in which manner ?
a) Thresholds of performance (in case of FDIC, bank
capitalisation) are identified to classify banks that breach the thresholds
into categories, for instance, in the case of FDIC into “under-capitalised”,
“significantly under-capitalised” and “critically under-capitalised”. The first
thresholds are set at levels that are well above what would allow for an
effective resolution or revival of banks.
b) Banks that do not meet the thresholds are
subjected to a layered, progressively stringent “program”, consisting of
mandatory and discretionary regulatory actions, which aim to prevent further
hemorrhaging, effectively quarantining the banks in breach until they are
resolved.
c) Another important rationale is to help supervisors
enforce corrective measures in a rule-based manner and this way reduce the risk
of forbearance
d) All the above
Ans : d
85) Prompt
Corrective Action (or PCA) is intended to achieve – to intervene early and take
corrective measures in a _______, so as to restore the financial health of
banks that are at risk by limiting deterioration in their health and preserving
their capital levels.
a) timely manner
b) untimely manner
c) delayed manner
d) postponement
Ans :a
86) While the intent of PCA is primarily _______, it
can also act as a deterrence and incentivise bank management and shareholders
to contain risks so they do not end up in PCA in the first place. And, by the
virtue of being reasonably rule-based, PCA reduces the scope for discretion;
like Odysseus, bank regulators tie themselves to the mast to evade the voices
of the forbearance sirens.
a) freedom
b) remedial
c) liberal
d)
justifiable
Ans : b
87) The Revised PCA Framework was issued by the
Reserve Bank on ________ and implemented with respect to the bank financials as
on March 31, 2017.
a) December 2002
b) April 13, 2017
c) 1.1.2018
d) 1.7.2018
Ans : b
88) The scope
of mandatory actions across all risk thresholds under PCA, has been restricted
essentially to which of the following ?
a) Restriction on dividend distribution/remittance of
profits;
b) Requirement on promoters/owners/parents to bring
in more capital;
c) Restrictions on branch expansion;
d) Higher provisioning requirement; and, Restrictions
on management compensation.
and All the above
Ans : d
89) Atal Bimit Vyakti Kalyan Yojana scheme who launched ?
a) ESIC
b) GIC
c) LIC
d) UIIC
Ans : a
90) Tajinder Mukherjee is the Chairman
and MD of which of the following ?
a) Bajaj Allianz
b) Naitonal Insurance Company
c) SBI Life
d) UTI
Ans : b
91) How PM – AASHA (Pradhan Mantri
Annadata Aay SanrakHan Abhiyan) helps farmers ?
a) by providing minimum support
assurance to farmers
b) by distributing cash
c) by distributing gold
d) by distributing FDs
Ans : a
92) What is SDR ?
a) Special Drawing Right (SDR)
b) It is an international reserve asset
created by IMF and allocated to its members in proportion of the members’ quota
at IMF.
c) SDRs are held by Government of
India/RBI and are shown as part of the Foreign Exchange Reserves
d) All the above
Ans : d
93) What is Reserve Tranche Position ? .
a) According to the IMF, Reserve
Tranche equals the Fund’s holdings of a member’s currency (excluding holdings
which reflect the member’s use of Fund credit) that are less than the member’s
quota.
b) The reserve tranche is reckoned
as part of the member’s external reserves
c) Both (a) & (b)
d) Cash collected by Government of India
Ans : c
94) What is Reserve Money (Mo) ? Give
details ?
a) Reserve money (M0),
also called ‘base money’ or ‘high-powered money’,
b) It is the highly liquid component
of money stock in the economy and plays a crucial role in the determination of
other monetary aggregates.
c) It broadly reflects the total
monetary liabilities of the Reserve Bank. Monetary policy actions and market
operations of the Reserve Bank that cause changes in the size of its balance
sheet, whether on the asset or the liability side, could result in changes in
the reserve money.
d) In monetary statistics, changes
in individual items on both the “components” and “sources” side could be seen
to alter the stock of reserve money
and All the above
Ans : d
95) Economic activity also decelerated
in major emerging market economies (EMEs) in Q3. Which of the following is
correct ?
a)
In China, growth slowed down on weak domestic demand. The ongoing trade
tensions and the possible cooling of the housing market pose major risks to
growth in China.
b) The Russian economy lost some
traction, pulled down largely by a weak agriculture harvest, though the growth
was buttressed by strong performance of the energy sector.
c) The Brazilian economy seems to be
recovering gradually from the economic disruption in the first half of the
year.
d) The South African economy expanded in
Q3, after contracting in the previous two quarters, driven by agriculture and
manufacturing
and All the above
Ans : d
99) Crude oil prices have declined
sharply, reflecting which of the following ?
a) stop purchasing
b) higher supplies and easing of
geopolitical tensions
c) neglecting crude oil
d) advertising for crude oil
Ans : b
100) What is the use of ‘Financial
benchmarks’ ?
a) Financial benchmarks are primarily used for
pricing, valuation and settlement purposes in financial contracts.
b) For sales
c) For encouragement
d) For sports
Ans : a
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