Civils Prelims 2019 Model Questions
TEST 11 (2 . 05. 2019 )
Prepared
by :Praturi Potayya Sarma
Questions
based on BANKING / ECONOMY (Sixth part)
1) Which of the following are regulators ?
a) Securities and Exchange Board of India (SEBI),
b) Insurance Regulatory and Development Authority
(IRDA),
c) Pension Fund Regulatory and Development
Authority (PFRDA),
d) National Bank for Agriculture and Rural
Development (NABARD) and National Housing Bank (NHB).
And all the above
Ans : d
2) What is “Haircut”
in financial market ?
a) It is the difference between the market value of
the collateral and the amount borrowed/lent against that collateral.
b) Business in shares
c) Transfer of money
d) Business in commodities
Ans : a
3) RBI plays a key role in the regulation and development
of the foreign exchange market and assumes three broad roles to foreign
exchange. What are they ?
a) Regulating transactions and related to the external
sector and facilitating the development of the foreign exchange market
b) Ensuring smooth conduct and orderly conditions in the
domestic foreign exchange market
c) Managing the foreign currency assets and gold reserves
of the country
d) All the above
Ans : d
4) What are the needs of exporters ?
a) Export packing credit
b) Export Bill negotiation
c) Export Bill Purchase and Discounting
d) Export Bill Collection Services
and all the above
Ans : d
5) What is ‘universal banking ‘ ?
a) It means offering all types of financial products like banking, insurance,
mutual funds , capital market related products , investment type products ,
providing advisory services all at one
place
b) banking only for students
c) banking only for teachers
d) banking only for housekeepers
Ans : a
6) What is ‘derivative’ in financial market ?
a) A derivative is a financial instrument, whose value
changes in response to the change in a specified interest rate, security price,
commodity price, foreign exchange rate, index of prices or rates, a credit
rating or credit index, or similar variable
b) equation
c) formula
d) mathematical problem
Ans : a
7) What is ‘Currency Swap’ ?
a) A currency swap is an interest rate swap where the two
legs to the swap are denominated in different currencies
b) Additionally the parties may agree to exchange the two
currencies normally at the prevailing spot exchange rate with an agreement to
reverse the exchange of currencies, at the same spot exchange rate, at a fixed
date in the future, generally at the maturity of the swap.
c) Both (a) and (b)
d) Sweeping changes
Ans : c
8) Who are responsible for various aspects of Foreign Exchange Management Act (FEMA) ?
a) Enforcement Directorate
b) Adjudication Authorities
c) Special Director (Appeals)
d) Appellate Tribunal
and All the above
Ans : d
9) When Foreign
Exchange Management Act was passed ?
a) 1999 ( But its
implantation date is w.e.f. 1.6.2000)
b) 1.1.1974
c) 1939
d) 1997
Ans : a
10) Banks face
competition from mutual funds mainly from debt oriented and liquid schemes,
especially because such schemes carry which benefit ? Give details.
a) tax benefits.
b) In the case of bank
deposits (savings or fixed), interest income gets taxed at the applicable
marginal slab tax rate of the depositor (the peak rate is 30 per cent at
present).
c) On the other hand, returns
from the long-term debt funds (held for more than three years) are taxable at
20 per cent with indexation benefit and 10 per cent without indexation (again
well below the peak marginal income tax rate of 30 per cent).
d) All the above
Ans: d
11) How MCLR system differed
from the base rate system ?
a) the cost of funds for setting the interest
rate was required to be based on marginal cost of funds (instead of marginal or
average or a combination thereof under the base rate system);
b) the spread to be charged
over the base rate was made less discretionary as it contained only two
elements, viz., business strategy and credit risk (in the case of base rate,
spreads included several elements such as tenor premia, allocable portion of operating
costs and credit risk, among others).
c) Both (a) & (b)
d) It earns high profits
Ans: c
12) What is IMPS?
a) IMPS is
an instant inter bank electronic funds transfer service through mobile phones
and it facilitates the customers to use mobile instruments as a channel for
remitting/receiving funds..
b) This
service allows customers to do fund transfer between the bank accounts by using
mobile as a channel instantly in real time manner
c) Both (a) and (b)
d) Toll Gate
Ans: c
13) Which of the following
is correct ? (various types of banks in India and their total numbers)
a) Public Sector Banks :
22 (including IPPB)
b) Private Sector Banks :
24 (plus Payment & Small Banks : 7)
c) Regional Rural Banks :
56
d) Foreign Banks : 46
& Cooperative Banks : 42
and All the above ( As per
IBA )
Ans: d ( in 2017)
14) GDP can be measured by
production, expenditure and income approaches. In this context, which of the
following is correct ?
a) In the production
approach: gross value added (GVA) at basic prices is added with net product
taxes to arrive at GDP at market prices.
b) In the income approach
: gross domestic income (GDI) is a sum of compensation to employees, gross
operating surplus/mixed income, consumption of fixed capital, and net
production and product taxes.
c) In the expenditure
approach: GDP at market prices is arrived at by adding consumption expenditure
(both private and government), investment and net exports (exports minus
imports).
d) All the above
Ans : d
15) IPPB will also enable more than 17 crore active account-holders
of Post Office Savings Bank to make interoperable digital payments including
the benefit of NEFT, RTGS, UPI and bill payment services. In the
abbreviation IPPB, the letter I stands for what ?
a) India ( IPPB: India
Post Payment Bank )
b) Interest
c) Investment
d) Industrial
Ans : a
16) GVA is also a better
reflection of the productivity of producers as it excludes indirect taxes which
could distort an analytical view of the production process. In the abbreviation
GVA, the letter V stands for what ?
a) Value ( GVA : Gross
Value Added )
b) Vote
c) Velocity
d) Verify
Ans : a
17) Which of
the following will be administered by the Centre ?
a) CGST
b) UTGST
c) IGST
d) All the
above
Ans : d
18) After
implementation of GST,which of the following are there ?
a) there
will be one CGST law,
b) 31 SGST
laws for each of the states including two Union Territories with legislature
c) one UTGST for Union Territories without
legislature
d) one IGST
law governing inter-state supplies of goods and services
and All the above
Ans : d
19) What is Fiscal
Federalism ?
a) Fiscal
federalism deals with the division of governmental functions and financial
relations among various levels of government within a federal structure
(Musgrave, 1959).
b) As a
subfield of public economics, fiscal federalism is concerned with understanding
which functions and instruments are best centralised and which are best placed
in the sphere of decentralised levels of government
c) Both (a) & (b)
d) It is collection of
money only for central government
Ans : c
20) The Central Statistics Office (CSO), Ministry of Statistics and
Programme Implementation has revised the Base Year of the Consumer Price Index
(CPI) from 2010=100 to 2012=100 with effect from the release of indices for the
month of ________
a) January 2015
b) 2013
c) 2009
d) 2007
Ans : a
21) CPI (Rural, Urban, Combined) on Base 2012=100 is being released for the month
of January 2018. Consumer Food Price Index (CFPI) for which of the following
are also being released for January 2018
a) all India Rural
b) Urban
c) Combined
d) All the above
Ans : d
22) As on June 30, 2017,
Rs.15.28 trillion (lakh crore) worth specified bank notes ( Rs.500 &
Rs.1000) received. To check these notes,
RBI is using which of the following ?
a) Sophisticated Currency
Verification and Processing (CVPS) machines
b) ATMs
c) BHIM app
d) UPI
Ans : a
23) In view of
the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), it has been
decided to substitute the existing guidelines with a harmonised and simplified
generic framework for resolution of stressed assets. The details of the revised
framework are elaborated in the following paragraphs.
a) Early
identification and reporting of stress;
b)
Implementation of Resolution Plan; Implementation Conditions for RP
c)
Timelines for Large Accounts to be Referred under IBC
d)
Prudential Norms; Supervisory Review; Disclosures; Withdrawal of extant
instructions
and All the above
Ans :d
24) What is
‘Restructuring’ (in banks)?
a) Books binding
b)
Restructuring is an act in which a lender, for economic or legal reasons
relating to the borrower's financial difficulty grants concessions to the
borrower.
c) arrangement of computer
connections
d) setting up of ATMs
Ans : b
25) Which documents are necessary (to be procured) in
banks from customers ?
a) to identify the borrower
b) to identify the security
c) to have a written evidence of the transactions of the
lending made by the bank
d) to ensure due repayment of the loan by the borrower /
or guarantor
and All the above
Ans : d
26) Bank documents can be divided into how many types
?
a) Demand Promissory Notes ( DPN)
b) Agreements
c) forms
d) All the above
Ans : d
27) What are the steps to be followed in banks for a
document to be error free and proper?
a) Selection of correct set of documents
b) stamping
c) amount of duty
d) safe keeping and preservation of documents
and All the above
Ans : d
28) As per Stamp Act, a document executed in India shall
be stamped _______ .
a) only before execution
b) at any time, but before filing suit
c) within 30 days after execution
d) before or at the time of execution
Ans : d
29) SARFAESI Act, 2002 deals with which of the following
?
a) Enforement of Security Interest by secured creditor (
Banks/Financial Insitutions)
b) Transfer of non-performing assets to Securitisation
Company or Reconstruction Company which will then dispose of those assets and
realise the proceeds
c) To provide a legal framework for securitization of
assets
d) All the above three aspects
Ans : d
30) 1st July, 2018 to 30th June, 2019 is the
financial year of which of the following ?
a) RBI
b) Government of India
c) Government of A.P.
d) UNO
Ans : a
31) The first bank in the country to introduce Iris Scan
Authentication feature for Aadhaar-based transactions through its micro ATM
tablets is ____ .
a) SBI
b) Axis bank
c) PNB
d) IOB
Ans : b
32) The first Indian tribal language to get a Wikipedia
edition in its own script is ____ .
a) Hindi
b) Santhali
c) Telugu
d) Sanskrit
Ans : b
33) The Pune-based
Cosmos Bank in which a cyber
fraud of more than Rs._____ million took place recently ?
a) 500
b) 900
c) 300
d) 400
Ans : b
34) Which country has imposed upto 140% tax on rice,
alcohol and cards imported from USA ?
a) Egypt
b) Turkey
c) Yemen
d) Kuwait
Ans : b
35) Which telecom
firm has launched ‘WINGS’ , a VOIP –
based service ?
a) Airtel
b)BSNL
c) Tatadocomo
d) Idea
Ans : b
36) Which of the following is correct ? (as per RBI’s third bi-monthly monetary
policy review of 2018-19)?
a) Repo Rate : 6.5%
b) Reverse Repo Rate : 6.25%
c) Marginal Standing Facility : 6.75 %
d) Bank Rate : 6.75 %
and All the above
Ans : d
37) Who is India’s wealthiest woman as per the Kotak
Wealth Hurun-Leading Wealthy Women 2018 List ?
a) Smitha V Crishna
b) Arundhati Bhattacharya
c) P.V.Sindhu
d) Saina Nehwal
Ans : a
38) Which is the world’s most liveable city as per the
Economist Intelligence Unit’s Global Liveability Index, 2018 ?
a) Geneva
b) Vienna
c) Paris
d) London
Ans : b
39) The Income – Tax collection in India, during 2017-18
as per Central Board of Direct Taxes is how much ?
a) Rs.5 tn
b) Rs.10.03 tn
c) Rs.4 tn
d) Rs.3 tn
Ans : b
40) Which is
India’s most patriotic brand as per a recent survey by data analytics
firm YougGov ?
a) Indian Bank
b) SBI
c) Vijaya Bank
d) PNB
Ans : b
41) Where Panini
Language Laboratory at Mahatma Gandhi Institute is recently started ?
a) Sri Lanka
b) Mauritius
c) Thailand
d) South Africa
Ans : b
42) Ashish Kumr Bhutani is the CEO of which of the
following ?
a) PMSBY
b) PM Fascal Bima Yojana
c) PMJJBY
d) APY
Ans : b
43) Which state implementing Mukhyamantri Yuva Nestam scheme ?
a) Andhra Pradesh
b) Tamilnadu
c) Karnataka
d) Maharastra
Ans : a
44) Who is the winner of prestigious WHO World No Tobacco
Day 2017 Award ?
a) Anil Kumar Jha
b) SK Arora
c) Lewis Hamilton
d) Petra Kvitova
Ans : b
45) Which company has been ranked top globally on
Fortune’s ‘Change The World’ ?
a) Reliance Jio
b) TCS
c) Wipro
d) Tech Mahindra
Ans : a
46) Which state has decided to rename the new capital
city Naya Raipur as Atal Nagar ?
a) Chanttisgarh
b) Jarkhand
c) Uttarakhand
d) Bihar
Ans : a
47) Which airport has emerged as the second fastest
growing airport in the world in the first half of 2018 ?
a) Kempegowda International Airport (Bengalurur)
b) Rajeev Gandhi International Airport
c) Rajaji Airport
d) Netaji Subhash Chandra Bose Airport
Ans : a
48) Which public sector enterprise announced to make
transactions on the ‘TReDS platform ‘ as announced by Receivable Exchange of
India (RXIL) recently ?
a) HAL
b) BHEL
c) NPCIL
d) NTPC
Ans : a
49) Who is the head of the panel set up by the Department
of Telcom to prepare a roadmap for rollout of 5G telephony in India ?
a) AJ Paulraj
b) KM Birla
c) YC Deveshwar
d) Sandeep Bakshi
Ans : a
50) Which company is the first company to cross Rs.8 tn
in terms of market capitalization ?
a) RIL
b) ITC
c) GIC
d) MPEDA
Ans : a
51) Which of the following is correct ? (States : new
Governors )
a) Bihar : Lalji Tandon
b) Jammu & Kashmir : Satya Pal Malik
c) Haryana : Satyadev Narayan Arya
d) Uttarakhand : Baby Rani Maurya
and All the above
Ans : d
52) Which of the following is correct ? ( New Govenors :
States )
a) Ganga Prasad : Sikkim
b) Tathagata Roy : Meghalaya
c) Katpan Singh
Solanki : Tripura
d) All the above
Ans : d
53) Transfer of Property Act contemplates how many types
of mortgages ?
a) simple mortgage ; mortgage by conditional sale
b) usufructuary mortgage; English mortgage
c) Mortgage by deposit of title deeds
d) Anomalous mortgage
and All the above six types
Ans : d
54) How goods can be delivered (as mentioned in the Sale
of Goods Act) ?
a) By handing over the key of the godown , in whch goods
are kept
b) by attornment , if the goods are in public warehouse
c) handing over the document of the title to goods , such
as railway receipt , bill of lading , warehouse receipts
d) All the above
Ans : d
55) Which firm announced formally launch of its messaging
app ‘Kimbho’?
a) Dabur
b) Patanjali
c) Cipla
d) HDFC
Ans : b
56) The factory output growth , measured by the Index of
Industrial Production (IIP) in June, 2018 is ____ .
a) 4 %
b) 2 %
c) 7%
d) 5%
Ans : c
57) The retail inflation , measured by the Consumer Price
Index (CPI), in July , 2018 is _____ .
a) 4.17 %
b) 2%
c) 6 %
d) 8 %
Ans : a
58) The whole sale inflation measured by the Wholesale
Price Index (WPI) in July, 2018 is ____.
a) 2 %
b) 5.09%
c) 3%
d) 7 %
Ans : b
59) RUCO is the
initiative launched by whom for collection and conversion of used
cooking oil to bio-diesel?
a) SAIL
b) Food Safety and Standards Authority of India ( FSSAI)
c) GAIL
d) MTNL
Ans : b
60) What is base rate ?
a) Minimum lending rate
decided by RBI which shall be adopted by all public sector banks
b) it is profit rate
c) it is commission rate
d) it is discount rate
Ans : a
61) What is ‘bridge loan’
?
a) Interim finance allowed by banks to their
customers pending disbursement of term loans by financial institutions
b) loan to play tennis
c) loan to play cricket
d) loan to play chess
Ans : a
62) ‘Practical Guide to
Producing Consumer Price Indices’ (PGPCPI) is printed by whom ?
a) ILO
b) United Nations Organisation
c) WB
d) IMF
Ans : b
63) Housing has how
much weight in CPI-IW ?
a) 70 %
b) 15.3 %
c) 85%
d) 90%
Ans : b
64) The weaknesses of Basel II
standards were exposed during the Global Financial Crisis of ______ which
forced a rethink of the regulatory approach towards capital adequacy
requirements.
a) 2001
b) 2007-09
c) 1999
d) 1991
Ans : b
65) In September 2010, the
Group of Governors and Heads of Supervision (GHOS) announced higher global
minimum capital standards for commercial banks. This followed an agreement
reached in July 2010 regarding the overall design of the capital and liquidity
reform package, now referred as what ?
a) Basel I
b) "Basel III".
c) CAMELS
d) SWIFT
Ans : b
66) Which of the following are
the important elements of the Basel III framework ?
a) stricter requirements for
the quality and quantity of regulatory capital, in particular reinforcing the
central role of common equity
b) an additional layer of
common equity - the capital conservation buffer - that, when breached,
restricts discretionary pay-outs to help meet the minimum common equity
requirement
c) a countercyclical capital
buffer, which places restrictions on participation by banks in system-wide
credit booms with the aim of reducing their losses in credit busts
d) liquidity requirements - a
minimum liquidity ratio, the Liquidity Coverage Ratio (LCR), intended to provide
enough cash to cover funding needs over a 30-day period of stress; and a
longer-term ratio, the Net Stable Funding Ratio (NSFR), intended to address
maturity mismatches over the entire balance sheet;
and All the above
Ans : e
67) In India, Basel III
capital regulation has been implemented from ______onwards in phases and it
will be fully implemented by March 31, 2019. The latest round of reforms
published by the Basel Committee in December 2017 have implementation timelines
stretching up to 2022.
a) 1999
b) April 1, 2013
c) 2004
d) 2006
Ans : b
68) In India, the CRAR prescribed by Reserve Bank being 9
percent as opposed to ___ percent required by Basel norms
a) 2
b)8
c) 4
d) 15
Ans : b
69) In the abbreviation NBFC-ND , the letters ND
stand for what ?
a) no due
b)
non-deposit taking ( NBFC-ND :non-banking financial companies non-depositing
taking )
c) non delivery
d) never done
Ans : b
70) The
minimum paid-up equity capital for small finance banks shall be Rs. ___ crore
a) 100
b) 500
c) 600
d) 900
Ans : a
71) The
promoter's minimum initial contribution to the paid-up equity capital of small finance bank shall at least be
____ per cent and gradually brought down
to 26 per cent within 12 years from the date of commencement of business of the
bank.
a) 60
b) 80
c) 40
d) 90
Ans : c
72) The small
finance banks will be required to extend 75 per cent of its ANBC to the sectors
eligible for classification as priority sector lending (PSL) by the Reserve
Bank. In the abbreviation ANBC, the letter A stands for what ?
a) Adjusted ( ANBC :Adjusted Net Bank Credit )
b) Asset
c) Around
d) After
Ans : a
73) The small
finance bank will be subject to all prudential norms and regulations of RBI as
applicable to existing commercial banks including requirement of maintenance of
CRR and Statutory Liquidity Ratio (SLR). No forbearance would be provided for
complying with the statutory provisions. In the abbreviation CRR, the letter C
stands for what ?
a) Cash ( CRR: Cash
Reserve Ratio)
b) cushion
c) cake
d) customer
Ans : a
74) At least
50 per cent of its loan portfolio should constitute loans and advances of upto
Rs. ___ lakh, for small finance banks.
a) 25
b) 70
c) 80
d) 100
Ans : a
75)
Differentiated banks serving niche interests, local area banks, payment
banks etc. are contemplated to meet credit and remittance needs of whom ?
a) small
businesses,”.
b) unorganized
sector,
c) low
income households,
d) farmers
and migrant work force
and All the above
Ans : e
76) What is ‘mortgage ‘ ?
a) security on immovable
property for a loan given by a bank
b) security on movable
property
c) security on gold
d) security on fashion
material
Ans : a
77) In how many methods
capital is raised ?
a) by offer for sale
b) by private placing
c) by offering rights
issue
d) All the above
Ans : d
78) How many types of
bonds are there ?
a) coupon bonds
b) zero coupon bonds
c) convertible bonds
d) All the above
Ans : d
79) How many types of
mutual fund schemes are there ?
a) open-ended scheme /
plan
b) close – ended scheme /
plan
c) growth scheme / equity
oriented scheme
d) income scheme / debt
oriented scheme
and All the above
Ans : d
80) East India Company
established which banks ?
a) Bank of Bengal ( 1809)
b) Bank of Bombay ( 1840 )
c) Bank of Madras ( 1843 )
d) All the above ( they
were called as Presidency Banks) ( In
the 20th century beginning
all the above banks amalgamated and established as Imperial Bank of
India. It was nationalized in 1955 and called as State Bank of India )
Ans : d
81) In 1865 which bank was
established by Indians ?
a) Allahabad Bank
b) Punjab National Bank
c) Bank of India
d) Canara Bank
Ans : a
82) Co-operative banks in
India finance rural area under which of the following ?
a) farming
b) cattle
c) milk
d) hatchery
and All the above
Ans : d
83) Co-operative banks in
India finance urban areas under which of the following ?
a) self - employment
b) industries
c) small scale units
d) home finance
and All the above
Ans : d
84) What is the old name
of Dena Bank ?
a) Devkaran Nanji Banking
Company Ltd.
b) Canara Bank Hindu
Permanent Fund
c) The Govind Bank Private
Limited
d) Patiala State Bank
Ans : a
85) “The world’s local
bank” is the tag line of which bank ?
a) HSBC
b) Citibank
c) BNP Paribas
d) Lloyds TBS
Ans : a
86)Which are called as
‘differentiated banks’ ?
a) payments
banks and small banks are “niche” or “differentiated” banks; with the common
objective of furthering financial inclusion.
b) Nationalised banks
c) Co-operative banks
d) RRBs
Ans : a
87) Small banks will provide a whole suite of
basic banking products, such as, ________ .
a) deposits
and supply of credit, but in a limited area of operation
b) loans for big
industrialists
c) loans for airline
companies
d) loans for defence
equipment
Ans : a
88) Payments
banks will provide a limited range of products, such as, acceptance of demand
deposits and remittances of funds, but will have a widespread network of access
points particularly to remote areas, either through their own branch network or
through BCs or through networks provided by others. They will add value by
adapting technological solutions to lower costs. In the abbreviation BCs, the
letter B stands for what ?
a) Best
b) Business ( BCs : Business Correspondents )
c) Broadband
d) Buyer
Ans : b
89) How many
types of markets are there ?
a) Perfect competition
market
b) Monopolistic
competition market
c) monopoly market
d) oligopoly market
and All the above
Ans : d
90) The
prudential limits and other guidelines on Call money market for Payments Banks
and Small Finance Banks will be the same as those applicable to ________
a) WB
b) Scheduled
Commercial Banks
c) IMF
d) ADB
Ans : b
91) NSDL
Payments Bank Limited has commenced operations as a payments bank with effect
from October 29, 2018. In the abbreviation NSDL, the letter N stands for
what ?
a) National
( NSDL : National Securities Depository Limited )
b) New
c) Navy
d) Natural
Ans : a
92) Lakdawala Committee
for estimation of poverty in _____, which recommended state specific
consumption baskets for estimation of poverty.
a) 1977
b) 1993
c) 1975
d) 1981
Ans : b
93) What is PMT ?
a) Proxy Means Testing or PMT. It is a kind of a
survey, a census based methodology. It does not require actually a survey.
b) It is basically to
identify that if you own a car you are not poor, so we can check that. If you
have a big brick house, you are not poor. So basically you identify a set of
durables easy to observe and if you own any of them or any 5 of them, then you are
not poor.
c) That is the rule that lots
of countries use and it is called a proxy means testing. A standard way of
identifying the poor is by using any version of this.
d) Anybody who has a motor
cycle is not poor, anybody who has gas cooker is not poor.
And All the above
Ans : d
94) Banking sector will
fall under which sector ?
a) Primary Sector
b) Service sector
c) Secondary Sector
d) Small Scale Secgtor
Ans : b
95. Recently ,
in State Bank of India, which
banks merged ?
a)State Bank of Hyderabad
b)State Bank of Mysore;State Bank of Bikaneer and Jair
c)State Bank of Travencore; Stae Bank of Patiala
d) All the above
And : d
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