IBPS CLERKS GENERAL AWARENESS PRACTICE MCQs

1. Which card can not be used in bank ATM?
1) Credit card
2) Debit card
3) Aadhar Card
4) Pre-paid card
5) None

2. We use PIN number in the transactions of bank ATM. PIN means ........?
1) Personal Identification numeral
2) Personal Identity number
3) Personal Identification number
4) Preferential Identification number
5) Personal Indian number

3. Banks do not issue.........?
1) Cheque book
2) Birth certificate
3) Demand Draft
4) Letter of Credit
5) Withdrawal Form

4. The debit card can be used in........?
1) in the same bank ATM
2) in the other bank ATM
3) Point of Sales Terminals ( POS)
4) All of above
5) None of Above

5. RBI can not supervise.........?
1) Micro Finance Companies
2) Non-Banking Finance Companies
3) NGO
4) Non-Scheduled banks
5) Scheduled banks

6. The Indian Banks Association is a ........
1) Constitutional body
2) Non-Constitutional body
3) Statutory body
4) Government body
5) Association of banks

7. Swabhiman is the scheme of ........?
1) Children
2) Rural area development
3) SEBI
4) Ministry of Finance and Indian Banks Association
5) World bank

8. Recently, Rs. 75 coin issued in the memory of ........celebrations of RBI?
1) Golden
2) Silver
3) Platinum
4) Diamond
5) Centenary

9. Indian Banks need not follow........?
1) Banking Regulation Act,1949
2) RBI Act 1934
3) Negotiable Instruments Act,1881
4) MGNREGA,2006
5) FEMA 1999

10. Which merger is wrong?
1) ICICI limited merger with ICICI Bank Limited -2002
2) Times bank with HDFC bank-1999
3) State bank of Hyderabad with State bank of India-2010
4) State bank of Indore with State bank of India-2010
5) New bank of India with Punjab National Bank-1993

11. The promoter of Clearing Corporation of India (CCIL)........?
1) IDBI
2) State bank of India and ICICI
3) LIC
4) HDFC and Bank of Baroda
5) All of above

12. Expand SFFSS?
1) Special Fund Facility Security Scheme
2) Special Fund Facsimile Security Settlement
3) Special Fund Facility Scrutiny Settlement
4) Special Front Facility Security Settlement
5) Special Fund Facility Security Settlement

13. Escheat mean........?
1) The person arrested on the charges of cheating and corruption
2) Estate taken by more than 2 persons to share in the future.
3) The british law which says the person cheated must make the correct of the transaction done
4) Bank agreement with another bank to get the funds for 14 to 90 days .
5) Property is transferred to the government because a person has died without heirs.

14. In 1964, ECGC established. Expand ECGC, which is under the administrative control of government of India?
1) Export Credit and Guarantee Company
2) Export Control and Guarantee Corporation
3) Export Credit and Guarantor Corporation
4) Export Credit and Guarantee Corporation
5) None of Above

15. Lead bank scheme of RBI was set up on the recommendation of ........?
1) Soma Sundaram Committee
2) Gadgil study group
3) Lodha group
4) Seturaman Committee
5) C.Rangarajan committee

16. Select the wrong option in the following statements relating to Co-operative Banks?
1) Co-operative bank is registered under the Co-operative societies law in which state it is founded
2) Banking Regulation Act 1949 partially applicable so that RBI has partial control
3) Few Co-operative banks usually follow federal structure
4) Co-operative banks can open foreign branches with out the permission of RBI
5) State Co-operative banks can seek re finance facility from RBI

17. Locate the wrong combination?
1) Rajmannar Committee-Cheque bounce an offense
2) Nadakarni Committee-Trading in Private Banks
3) Goparia Committee-Bank Frauds
4) Vyas Committee-Rural Credit
5) Usha Thorat Committee-Financial Inclusion

18. On 18 August 2011, Asian Development Bank granted $ 200 million to .......to boost the power distribution in the state?
1) Bihar
2) Andhra Pradesh
3) Odisha
4) West Bengal
5) Madhya Pradesh

19. Asian Development bank is in Manila. Manila is the capital of.......?
1) Philippines
2) Japan
3) Hongkong
4) Vietnam
5) Laos

20. Highest producer of milk in the world is.......?
1) Canada
2) USA
3) India
4) UK
5) France

21. Devaluation means........?
1) deliberate upward adjustment to a country's official exchange rate relative to other currencies
2) deliberate downward adjustment of prices to market prices
3) downward the exports value to import value of the goods exchanged for the goods
4) deliberate downward adjustment to a country's official exchange rate relative to other currencies
5) None of Above

22. Payroll tax means.......?
1) Tax collected on employers' wage bills
2) Tax paid to government by class-IV employees
3) Tax paid and received on the rotation basis
4) No Tax collected from employees
5) All of above

23. .......is a surface to surface missile manufactured by India?
1) Hatf
2) Bulava
3) KN-06
4) Prahar
5) Trinity

24. Lok pal bill deals with........?
1) Reservation of women in Local Bodies
2) Corruption
3) Beedi workers
4) Domestic workers
5) Non-Resident Indians

25. Union Cabinet approved to grant Rs.1200 crore scholarship plan to........?
1) Jammu and Kashmir
2) Uttar Pradesh
3) Madhya Pradesh
4) Assom
5) Odisha

26. New Chief minister of Uttarakhand is.......?
1) Nitish Kumar
2) Mayawathi
3) Ramesh Pokhriyal
4) B.C. Khanduri
5) None

27. South Sudan is in ......?
1) Asia
2) Europe
3) North America
4) Africa
5) Australia

28 G-SAT -12 is a .......?
1) Rocket
2) Satellite
3) Space Shuttle
4) Missile
5) Aircraft

29. From 10 November 2011, the SAARC summit to be held in Male (capital of Maldives). Select one nation not a member of this International summit?
1) Myanmar
2) Bangladesh
3) India
4) Sri Lanka
5)Pakistan

30. Housing scheme is........?
1) MGNREGS
2) JSSY
3) RAY
4) ANNAPURNA
5) LAF

31. National Drinking Water Mission named after.......?
1) Indira Gandhi
2) Mahatma Gandhi
3) Jawahar Lal Nehru
4) Rajiv Gandhi
5) Vajpayee

32. Pick up a filed in which Ramon Magsaysay award is not given?
1) Sports
2) Emergent Leadership
3) Government Service
4) Peace and International Understanding
5) journalism

33. 12th Five year plan period is.......?
1) 2012-2017
2) 2010-2015
3) 2009-2014
4) 2012-2018
5) 2011-2016

34. Five year plans finally approved by.......?
1) National Development Council
2) Planning Commission
3) National knowledge Commission
4) Ministry of Finance
5) Finance Secretary

35. Father of Indian Green Revolution is.......?
1) M.S.Swaminathan
2) Harish Handey
3) J.M.Keynes
4) Amartya Sen
5) Indira Gandhi

36. As part of Look East policy, Prathibha Patil, the president of India recently visited.......?
1) South korea
2) North Korea
3) Vietnam
4) Malaysia
5) Hongkong

37. India's national aquatic animal is.......?
1) Fish
2) Prawn
3) Whale
4) Dolphin
5) Shrimp

38. National Children day is........?
1) 14 January
2) 14 December
3) 14 October
4) 14 November
5) 14 August

39. 80th anniversary completed by.......?
1) Central Bank of India
2) Planning Commission
3) Rastrapathi Bhavan
4) Income Tax Department
5) Reserve Bank of India

40. Indian stock markets run under the control of..............?
1) RBI
2) TRAI
3) SBI
4) SEBI
5) NABARD

41. Standard & Poor is a .......?
1) Bank
2) Non-banking finance company
3) Stock market index
4) Credit Rating Agency
5) RBI advisory body

42. MARPOL is the International Convention .......?
1) to prevent the amalgamation of money laundering agencies
2) to control pollution from motor vehicles
3) to prevent the pollution from Ships
4) to stop the usage of pesticides
5) to encourage the people not to buy plastic

43. Fazilka and Pathankot are the new two districts of.......?
1) Punjab
2) Andhra Pradesh
3) Rajasthan
4) Odisha
5) Jammu & Kashmir

44. Union Government declared price stabilization fund for.......?
1) Tobacco, Coffee, Tea and Rubber
2) Coffee, Tea, Rice and Sugar
3) Wheat, Computers, Chemicals and Tea
4) Coffee, Rice, Wheat and Crude
5) Petrol, Gas and Rice

45. ........not written by Sarojini Naidu?
1) The Golden Threshold
2) The Feather of the Dawn
3) Muhammad Jinnah
4) Swamy and his friends
5) The Bird of Time: Songs of Life, Death & the spring

46. .......is a player/ umpire/ coach not belong to Cricket?
1) Duncan Fletcher
2) Clyde Duncan
3) Gautam Gambhir
4) Lionel Andres Messi
5) Mansur Ali Khan Pataudi

47. Olympic games 2012 will be held in.......?
1) Mexico
2) Argentina
3) Brazil
4) India
5) England

ANSWERS:

1)3 2)3 3)2 4)4 5)3 6)5 7)4 8)3 9)4 10)3 11)5 12)5 13)5 14)4 15)2
16)4 17)2 18)5 19)1 20)3 21)4 22)1 23)4 24)2 25)1 26)4 27)4 28)2 29)1
30)3 31)4 32)1 33)1 34)1 35)1 36)1 37)4 38)4 39)3 40)4 41)4 42)3 43)1
44)1 45)4 46)4 47)5

Development of Indian Banking

 

In order to make the Reserve Bank of India more Powerful, the Government of India nationalised it on January 1, 1949. With a view to have the coordinated regulation of Indian banking. the Indian Banking Act was passed in 1949. According to this Act, the Reserve Bank of India was granted extended powers for the inspection of non-scheduled banks. For the development of the banking facilities in the rural areas the Imperial Bank of India was partially nationalised on July 1, 1955 and it was renamed as the State Bank of India. Along with it other 8 (at present 5) banks were converted as its associate banks which form what is named as the State Bank Group. They are as follows -

1.  The State Bank of Bikaner and Jaipur (in the beginning State Bank of Bikaner and State Bank of Jaipur were merged and named as the Stat Bank of Bikaner and Jaipur)
2. The State Bank of Hyderabad
3. The State Bank of Indore (merged with SBI)
4. The State Bank of Mysore
5. The State Bank of Saurashtra (merged with SBI)
6. The State Bank of Patiala
7. The State Bank of Travancore

In order to have more control over banks, 14 large commercial banks whose reserves were more than Rs. 50 crore each were nationalised on July 19, 1969. The nationalised banks are as follows -

1. The Central Bank of India
2. Bank of India
3. Punjab National Bank
4. Canara Bank
5. United Commercial Bank
6. Syndicate Bank
7. Bank of Baroda
8. United Bank of India
9. Union Bank of India
10. Dena Bank
11. Allahabad Bank
12. Indian Bank
13. Indian Overseas Bank
14. Bank of Maharashtra

After a decade, on April 15, 1980, those 6 private sector banks whose reserves were more than Rs. 200 crore each were nationalised. These banks are -

Andhra Bank

1. Punjab and Sindh Bank
2. New Bank of India
3. Vijaya Bank
4. Corporation Bank
5. Oriental Bank of Commerce 

On Septemeber 4, 1993 the Government merged the New Bank of India with Punjab National Bank and a result of this the total number of nationalised banks reduced from 20 to 19.

With the transition of the national economy to a higher growth trajectory, the provision of adequate and timely availability of bank credit to the productive sectors of the economy has acquired importance. As public sector banks still own about 71 percent of the assets of the banking system they continue to play an important role in responding to the change in economic environment. As the banking regulator and supervisor and as a monetary policy authority, the Reserve Bank of India (RBI) continues to guide the banking system, including foreign, private sectors and public sector banks, to meet emerging economic challenges.

As certain rigidity and weaknesses were found to have developed banking system during the late eighties, the Government felt that the financial system to play its role in ushering in a more efficient and competitive economy. Accordingly, a high level committee under the Chairmanship of Shri M. Narasimham on the Financial System (CFS), was setup on August 14, 1991 to examine all aspects relating to the structure, organisation, functions and procedure of the financial systems. Based on the recommendations of the Committee a comprehensive reform of the banking system was introduced in 1992-93.

A high level committee under Chairmanship of Shri M. Narasimham was again constituted by the Government of India in December 1997 to review the record of implementation of financial reforms recommended by CFS in 1991 and chart the reforms necessary in the year ahead. The Committee submitted its report to the Government in April 1998.

IBPS CLERKS BANKING AWARENESS MCQs

1. Which of the following statements is true?
a) The licence to open branches of bank is granted by Board of Directors of that Bank
b) There is no need of licenses to open branch of a bank
c) A licence to open a branch is issued by the Central Government
d) A licence to open a branch is issued by the Reserve Bank of India under the provisions of Banking Regulation Act, 1949

2. The important condition for granting licence of banking companies is?
a) Banking company need not plan to pay for future depositors
b) Banking company can plan for its capital structure once the licence is granted
c) The business undertaken by the banking company should not frustrate the interest of public
d) The banking company can undertake business other than banking with the permission of annual general body

3. Who of the following is not a party to the IPO?
a) Registrar of Issue
b) Investment Banker
c) Advertisement Agency
d) Registrar of Companies

4. Which of the following is not shown as an asset in the balance sheet of a Bank?
a) Investments
b) Advances
c) Cash Balances with other banks
d) Borrowings

5. The credit policy of a bank does not consists of?
a) Lending policies
b) Quality control
c) Loan product mix
d) Advertising of loan products

6. Which of the following is a function of the agent bank relating to flow of money in the process of loan syndication?
a) Receiving notices relating to cancellation of any part of the loan
b) Calling of loans in the event of default
c) Receiving the fee from the borrower and distributing among the participating banks
d) Receiving notices relating to transfers of banks

7. Which of the following is the parameter to recognize the SSI unit as sick unit?
a) The erosion in the net-worth due to accumulated losses is up to 25% of its net worth during the previous account year
b) The erosion in the net-worth due to accumulated losses is up to 50% of its net worth during the previous account year.
c) The unit should have been in commercial production for at least five years
d) Lack of updations in technological development

8. Which of the following is not the service provided by the Small Industries Service Institute?
a) Providing entrepreneurship development programs
b) Developmental efforts
c) Export promotion and liaison activities
d) Financial support

9. Service Area Approach (SAA) is associated with?
a) Rural and Semi-urban branches of commercial banks
b) Urban branches of commercial banks
c) Branches of commercial banks situated in metro cities
d) Development banks

10. Which of the following cannot be securitized?
a) Future rentals of a fishing boat
b) Hire purchase receivables
c) Demand drafts received by the banker during clearing
d) Future billings for an airline

11. Which of the following statements is true?
a) The special purpose vehicle (SPV) purchases the assets from the borrower directly during the securitization
b) The originator and obligor are the same persons in securitization process
c) Administrator collects the payments due from the obligor and passes it to the SPV and follows with defaulters
d) Mortgage based securitization provides high yields to the investor

12. The important feature of an anticipatory letter of credit is that?
a) The letter of credit can be used as back- to- back letters of credit
b) The beneficiary under the letter of credit may receive payment even at the pre-shipment stage
c) The beneficiary under the letter of credit may receive payment even at the post-shipment stage
d) The cash advance is not permitted against such letter of credits

13. The Shipping guarantee is a?
a) Type of a letter of credit
b) Guarantee issued by the ship captain to the purchaser
c) Guarantee issued to the borrower towards the loan granted by the shipping company
d) Deferred payment guarantee issued by a banker at the request of the consignee when the documents are not received and goods are received, for facilitating the delivery of goods.

14. Which of the following statements is true?
a) The charge card is a credit instrument
b) Under this facility the cardholders need to pay amount within ten installments
c) Cardholder has to pay the 100% of the purchase amount within 30 days of purchase
d) The charge card shall have revolving credit

15. Which of the following is not augmented feature of a credit card?
a) Personal accident insurance
b) Cash withdrawals
c) Add-on facility
d) Issue of deferred guarantee

16. Which of the following is the disadvantage of going for public issue?
a) Liquidity to existing shares
b) Increase in visibility and reputation to the company
c) Better pricing and placement with new investors
d) Need to make continuous disclosures

17. Which of the following is not a criterion to select the Investment Bankers?
a) No professional memberships or incorporations are required
b) General reputation in the market
c) Good rapport with market intermediaries
d) Distribution net work of the organization

18. Which of the following is not an asset of a bank?
a) Notes and small coins
b) Overdue recurring deposits
c) Short term loans
d) Staff advances

19. The banking company has restriction to sanction loan to?
a) Directors of the bank
b) Staff working in the bank
c) Students going abroad
d) Professionals

20. Which of the following is a non-depository institution?
a) Credit unions
b) Commercial banks
c) Mutual funds
d) Regional rural banks

21. The disadvantage associated with leasing company is?
a) Low costs
b) Flexibility in payments
c) Eliminates the risk of obsolescence
d) High competitions because of entry to all financial institutions

22. Which of the following theory is associated with the financial system in the economic growth?
a) Retributive theory
b) Reformative theory
c) Financial repression theory
d) Jurisdictional theory

23.Which of the following is not a financial intermediary in the financial markets?
a) Pension funds
b) Credit unions
c) Life insurance companies
d) Small scale service institute.

24 Which of the following is not a function of a commercial bank?
a) Registration of charges and mortgages
b) Transactions services
c) Asset transaction
d) Real-time Gross Settlement

25. Which of the following is one of the three pillars of new Basel Capital Award?
a) Market competitions
b) Market rapport
c) Market discipline
d) International market relations

26. The interest in savings bank accounts of a bank is calculated on?
a) Minimum amount of balance that is maintained in the account in between 10th and the last day of month
b) Maximum amount of balance that is maintained in the account in between 10th and the last of month
c) Minimum amount of balance that is maintained in the account in between 1st and the last day of month
d) Maximum amount of balance that is maintained in the account in between 1st and the last of month

27. The credit policy of a bank does not deal with?
a) Credit risk management
b) Documentation standards
c) Review and renewal of advances
d) Outstanding balances in deposit accounts

28. Issuing credit cards is a component of ?
a) Corporate banking
b) Rural banking
c) Retail banking
d) Micro finance

29. The origin of bank instruments can be traced to?
a) The priests and worship places of public deposits
b) Goldsmith receipts
c) Bonds issued by the British Government in India
d) Bank notes issued by Bank of Venice

30. Which of the following is not the function of commercial banks?
a) Providing transaction services
b) Intermediation in financial services
c) Providing transformation services
d) Regulating the issue of bank notes.

31 Which of the following is the most important challenge before the commercial bank?
a) Maintenance of foreign currency
b) Evaluating the need of the customers
c) Maintenance of SLR and CRR
d) Meet the technological revolution

32. The asset's side of balance sheet consists of ?
a) Cash balances with other banks
b) Fixed deposits of customers
c) Savings deposits
d) Recurring deposits

33. Which of the following is an income for a bank?
a) Depreciation on bank's property
b) Interest on inter bank borrowings
c) Profit on revaluation of investments
d) Provisions made on account of write-offs

34. Saving Bank Account can be opened in the name of ?
a) State text book printing corporations
b) District level housing cooperative societies
c) Communist Party of India
d) Aravind Samuel, Anurag Deepak and Amarish Sugandhi Jointly

35. The interest on recurring deposit is paid on the basis of ?
a) Simple interest calculated monthly basis
b) Simple interest on monthly products basis
c) Quarterly compounding
d) Interest calculated on daily products basis

36. Which of the following statements is true?
i. Term deposits are non-transaction deposits
ii. Cheques can be issued on short-term deposits
iii. All term deposits are interest bearing deposits
a) (i) only
b) (ii) only
c) (iii) only
d) (i) and (iii)

37. The credit policy laid down by the top management of a bank does not deal with?
a) Credit risk management
b) Pricing of the credit products
c) Appraisal of time and demand deposits
d) Documentation standards.

38. Which of the following factors is not required to be considered to analyze the repayment capacity of a borrower?
a) Working capital management
b) Personal educational qualifications
c) Financial leverage
d) Interest rate risk management

39. Which of the following is a facilitating service of core loan products of retail banking services?
a) Current or savings accounts
b) Legal services for documentation
c) Delivery of loan at promised time period
d) Flexibility in prepayment of loan

40. Which of the following is an most important advantage of retail banking on the resource side?
a) Consumer loans are low risk products
b) Innovative product development and disbursal
c) Increases the subsidiary business of a bank
d) Requires less efforts to market retail loan products

41. Lenders may not provide trade-offs to the borrowers on the basic term of consumer installment credit relating to?
a) Interest rate
b) Maturity of the loan
c) Maturity of the deposit
d) Quantum of finance

42. Which of the following is the risk associated with the retail banking?
a) Strong recovery strategy
b) Definite lending limits
c) Effective credit process and proposals
d) Inadequate risk pricing

43 The advantage of consortium finance is?
i. Speedy transactions and individual approach
ii. Involvement of huge amounts
iii. Use of expertise of all the banks
a) (i) only
b) (ii) only
c) (iii) only
d) (i), (ii) and (iii)

44 Which of the following is not a function of the agent bank in loan syndication?
a) Ensuring the compliance of conditions precedent under the loan agreement
b) Determining the LIBOR interest rate for each interest rate
c) Planning for future syndication of loans
d) Receiving notices relating to cancellation of any part of the loan

45. Which of the following is not a phase/step in the formation of loan syndication?
a) Finalization of supply agreement
b) Identify the needs of the borrower
c) Preparation of information memorandum
d) Invite other banks to participate

46. Which of the following statements is true?
a) SSI is an undertaking in which the investments in fixed assets in plant and machinery does not exceed one million
b) Small and medium enterprises both in size and shape are not homogenous in nature
c) The small and medium enterprises contribution towards the GDP is nominal
d) Small and medium enterprises do not support the large industries.

47. The Nayak Committee has suggested the turnover method for assessing the working capital and pegged it at?
a) 15% of the projected annual turnover, as working capital limit
b) 20% of the projected annual turnover, as working capital limit
c) 25% of the projected annual turnover, as working capital limit
d) 30% of the projected annual turnover, as working capital limit

48. Which of the following is not a part of the rehabilitation package granted for revival of sick industry?
a) Waiver of penal interests
b) Funding by sanctioning of term loans towards the unpaid installments of loans
c) Grant of additional working capital loans
d) Not demanding the promoters contribution towards the rehabilitation package

49. Service Area Approach is associated with?
a) Industrial finance
b) Microfinance
c) Rural finance
d) Consortium finance

50. Which of the following resources cannot be securitized?
a) Credit balances outstanding in cash credit accounts
b) Credit Card receivables
c) Hire purchase receivable
d) Mortgage in lieu of future payments

51. Which of the following is a type of anticipatory letter of credit?
a) Green clause letter of credit
b) Yellow clause letter of credit
c) Back to back letters of credit
d) Revolving letter of credit

52. Performance guarantee is issued?
a) In lieu of earnest money
b) In lieu of retention money
c) In lieu of indemnity bonds
d) For successful competition of Turnkey projects

53. Which of the following is not a transfer of funds by using the electronic media?
a) Mail transfer of funds
b) Telegraphic transfer of funds
c) Electronic credit transfers
d) Electronic clearing transfers

54. Which of the following is not an augmenting feature of credit cards?
a) Personal accident insurance
b) Cash withdrawal facility
c) Add-On facility
d) Automatic recovery of interest on term loans

55 Which of the following is a disadvantage of going public issue?
a) Provides liquidity to existing shares
b) Commands better pricing than placement with few investors
c) Increased regulatory norms
d) Enables valuation of the company

56 Which of the following is not a reason for regulating the banking operations?
a) Banks hold a major portion of the public savings
b) Banks intermediate between the savings and investments
c) Banks hold a large part of the money supply
d) Banks earn profit from non-fund services

57. Which of the following statements is true?
a) Resave Bank of India empowers the banks to open branches according to their will and pleasure
b) Reserve Bank of India is a central bank which monitors only lending activities pertaining to export credit
c) Banks have authority to establish the ATMs at their convenience
d) Rural banks of commercial banks do not have freedom to issue credit cards

58. When the customer withdraws cash from ATM, the banker and customer relation ship is?
a) Debtor and Creditor
b) Creditor and Debtor
c) Lessor and Lessee
d) Agent and principal

59. Which of the following is a public sector Bank?
a) IDBI
b) ICICI
c) AXIS
d) HDFC

60. Trade control in India is regulated by?
a) RBI
b) SEBI
c) EXIM Bank
d) DGFT

61 Which of the following businesses is prohibited as per Sec 8 of B.R Act 1949?
a) Executing the trusts
b) Leasing
c) Retail trading
d) Underwriting

62. Which of the following is not one of the essential elements of internal audit?
a) Totality
b) Expertise
c) Independence
d) Subjectivity

63. The letter of credit, which facilitates the exporter to get pre- shipment finance (from the stage of purchase of raw material until the warehousing of the finished goods) from advising bank is called?
a) Red Clause LC
b) Lines of credit
c) Packing credit loan
d) Green Clause LC

64. A term loan is classified as a non-performing asset, if interest or installment is overdue for period exceeding how many days?
a) 90
b) 91
c) 180
d) 182

65. Which of the following is an interest bearing demand deposit?
a) Time Deposit
b) Re-investment deposits
c) Cash Certificates
d) Savings Bank account

66. Debt Recovery Tribunals accept petitions from Banks and financial institutions, only when the amount of suit is for Rs?
a) 1 00 000 and above
b) 5 00 000 and above
c) 7 50 000 and above
d) 10 00 000 and above

67. An endorsement is deemed as an instruction to?
a) Collecting Bank
b) Paying Bank
c) Drawer
d) Payee

68. Ideal Credit deposit ratio for a bank is?
a) 60%
b) 40%
c) 90%
d) 30%

69. The rate at which RBI rediscounts the bills of commercial banks is called as?
a) Bank Rate
b) Prime Lending rate
c) Repo rate
d) BPLR

70. Which of the following is not one of the RBI directives on clean note policy?
a) Currency note packets are not to be stapled and secured with paper bands
b) Soiled notes are to be stapled before they are remitted to Currency Chest.
c) Water mark window of bank notes shall not contain any writings
d) Currency notes are to be sorted in to Issuable and non-issuable notes.

71. Which of the following committees are related to 'Micro financing'?
a) Nayak Committee
b) Tandon committee
c) Vyas Committee
d) Narasimham committee

72. The relation ship between RBI and the Bank maintaining the currency chest is that of?
a) Debtor and Creditor
b) Principal and Agent
c) Bailor and Bailee
d) Creditor and Debtor

73. Normally, the number of members in a self Help Group shall not exceed?
a) 10
b) 20
c) 50
d) 15

74. Short fall in fulfilling the targets of Priority sector and agricultural finance by domestic commercial banks shall be deposited with/in?
a) RIDF
b) SIDBI
c) RBI
d) IDBI

75. The maturity value of a Recurring deposit with a monthly contribution of Rs 500 kept for a period of 12 months, at 9% interest rate compounded quarterly would be Rs.?
a) 6, 265
b) 6, 625
c) 7, 255
d) 7, 555

76. Which of the following is not an imperfect note?
a) Washed note
b) Bleached note
c) Mutilated note
d) Oiled note

77. Credit rating helps in measuring the credit risk and facilitates?
a) Considering higher credit limits
b) Making loan provisioning at an early stage
c) Accurately calculate the probable loan losses
d) Pricing of a loan

78. The Reverse Repo has the following characteristic?
a) Borrowing by RBI from banks
b) Borrowing with government security as collateral
c) Short term borrowing
d) All of these

79. Under the Nayak Committee recommendations, the quantum of working capital limits from the bank is minimum percentage of the projected annual sales?
a) 5%
b) 15%
c) 20%
d) 25%

80. Banks insist on providing finance for those projects or activities only which they consider to be viable. What is meant by viability of project?
a) Capacity to generate cash, adequate to service debt and surplus for borrower's personal requirement.
b) Generation of cash to meet debt liability
c) Generation of profits.
d) Generation of gross profits

81. Letter of negative lien obtained from borrower by a bank contains?
a) An undertaking that the property mortgaged to the bank is his own
b) A confirmation that the borrower had earlier deposited title deeds to create mortgage on the property.
c) An undertaking not to create any encumbrance/lien on the property which he owns but not yet mortgaged to the bank
d) A declaration that he is the joint owner of the property furnishing the details of his share and valuation thereof.

82. Which of the following statement is CORRECT?
a) Consortium advances to be treated as NPA on the basis of recovery by individual banks
b) If one facility of a borrower is treated as NPA other facilities to him also to be treated as NPA even if there are no irregularities in that account.
c) Consortium must be formed if the total exposure of fund based limit exceeds Rs 100 crore.
d) Both (a) and (b)

83. If an IPO is under-priced, which of the following can be considered as consequences/implications of the same?
I. The company looses the opportunity to raise more funds
II. Under pricing would give less returns to the investor
III. Under pricing results in lower net worth on an increased equity.
a) Only (II) above
b) Only (III) above
c) Both (I) and (III) above
d) Both (II) and (III) above all.

84. Corporate Bank files suit for recovery of its loan against the guarantor only and not the borrower. Guarantor pleads in the court that before filing suit against him, money should be recovered from the borrower. In such circumstances, the bank can seek recourse in the court against?
a) All the liable parties together only
b) Any one of them at a time
c) All separately
d) At its discretion it can proceed against any one

85. A letter of credit (LC) wherein the credit available to the customer gets reinstated after the bill is paid is known as?
a) Back to back LC
b) Red clause LC
c) Back to front LC
d) Revolving LC

86. Regional Rural Banks are?
a) Private Sector scheduled commercial banks
b) Cooperative banks
c) Foreign banks
d) Public sector scheduled commercial banks

87. Large corporate customers demand?
a) Short term products from their banks irrespective of the cost at their times of need.
b) Increasingly sophisticated products from their banks at the lowest possible cost.
c) Disintegrated financial products from their banks at the lowest possible cost.
d) Basic banking products from their banks but with speed and efficiency.

88. Funded Services under corporate banking does not include?
a) Working Capital Finance
b) Bill Discounting
c) Export Credit
d) Letters of Credit

89. Which of the following is not directly involved in rural lending?
a) Cooperatives
b) RRBs
c) Commercial banks
d) SIDBI

90. PACSs provide?
a) Mainly long term credit
b) Mainly short term credit
c) Both long term and short term credit
d) Do not provide any credit

91. The purpose of which is to make credit of available to essential sectors of the economy according to national priorities?
a) Selective Credit Control (SCC)
b) Maintenance of cash reserve
c) Reserve fund
d) Comprehensive Credit Control

92. The system of note issue followed by the RBI is?
a) Proportional reserve system
b) Minimum reserve system
c) Minimum fiduciary system
d) Maximum fiduciary system

93. The rate at which the Reserve Bank of India lends to the commercial banks in very short term against the backing of the Government securities is known as?
a) Bank rate
b) Repo rate
c) Reverse Repo
d) Discount rate

94. Scheduled banks are those?
a) Includued in the 2nd schedule of the Banking Regulation Act-1949
b) Includued in the 2nd schedule of the Companies Act-1956
c) Includued in the 2nd schedule of the Reserve Bank of India Act -1934
d) Bank Nationalization Act -1969

95. The following is classified as a public sector bank?
a) ICICI Bank
b) IDBI Bank Ltd
c) Axis Bank
d) Local area bank

96. The banker-customer relationship in credit card payment is?
a) Creditor-debtor
b) Debtor-creditor
c) Agent principal
d) Principal-agent

97. The base rate is set by?
a) Individual banks
b) RBI
c) Government of India
d)RBI in consultation with Government

98. State Bank of India's new floating rate of deposit is directly linked to?
a) Inflation Rate
b) BPLR
c) Base Rate
d) BankRate

99. Six private sector banks were nationalised on April 15, 1980, whose reserves were more than?
a) 100 Crores
b) Rs. 200 crores
c) 300 crores
d) 400 crores

100. Security printing press was established in 1982 at?
a) Kolkata
b) New Delhi
c) Bombay
d) Hyderabad

Answers

1) d      2) c  3) d     4) d        5) d   6) c    7) b   8) d    9) a  10) c
11) c 12) b 13) d 14) c 15) d 16) d 17) a 18) b 19) a 20) c
21) d 22) c 23) d 24) a 25) c 26) a 27) d 28) c 29) b 30) d
31) d 32) a 33) c 34) d 35) c 36) d 37) c 38) b 39) a 40) c
41) c 42) d 43) d 44) c 45) a 46) b 47) b 48) d 49) c 50) a
51) a 52) d 53) a 54) d 55) c 56) d 57) c 58) a 59) a 60) d
61) c 62) d 63) d 64) a 65) d 66) d 67) b 68) a 69) a 70) b
71) c 72) b 73) b 74) a 75) a 76) c 77) d 78) d 79) c 80) a
81) c 82) a 83) c 84) d 85) d 86) d 87) b 88) d 89) d 90) b
91) a 92) b 93) b 94) c 95) b 96) b 97) a 98) c 99) b 100) d

Forex reserves rise by $266 m to $316.76 b

India's foreign exchange reserves rose by $266 million to $316.763 billion in the week ended September 16, according to Reserve Bank of India's ‘Weekly Statistical Supplement'.

This rise in reserves, which is mainly on account of change in currency valuation, follows a huge decline in reserves in the previous week.

In the previous week ended September 9, India's foreign exchange reserves fell by $4.29 billion to $316.497 billion.

The reserves rose due to an increase of $202 million in the country's foreign currency assets to $280.903 billion.

Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, sterling and yen held in reserves.

In the week under consideration, the euro strengthened against the dollar.

Gold was unchanged at $28.319 billion. SDRs declined by $2 million to $4.549 billion. India's reserve position in the IMF rose by $62 million to $2.992 billion.

After a sharp fall this week, when it almost touched levels of 50 against the dollar, the rupee is likely to trade between 49.30 and 49.70/90, next week.

There would be pressure on the rupee due to pressure of half-yearly closing and settlement of import bills.

Starting October the rupee could be back to levels of 47, said the treasury head of a public sector bank.

Banks, NBFCs can now float infrastructure debt funds

To enhance the flow of funds to the infrastructure sector, the Reserve Bank of India on September 23 said banks and non-banking finance companies (NBFCs) will be eligible to sponsor infrastructure debt funds (IDFs), which can be set up as mutual funds and NBFCs.

The RBI has opened up the IDF channel as banks and NBFCs are faced with serious asset-liability mismatches (short-term liabilities support long-term lending) when it comes to financing long-term infrastructure projects. Further, garnering resources for the projects is also proving to be a Herculean task.

This also comes at a time when the Planning Commission has projected a huge investment requirement of the order of Rs 49 lakh crore (about $1 trillion) in the Twelfth Plan (2012-17) for infrastructure projects.

Infrastructure projects include electricity, roads and bridges, ports, airports, telecommunications, railways, irrigation, water supply and sanitation, storage, and oil and gas pipelines.

The central bank has drawn up the broad parameters to enable banks and NBFCs, which are classified as Infrastructure Finance Companies (NBFC-IFC), to set up IDFs under MF and NBFC structures.

IDF floated as MF

Banks acting as sponsors to IDF-MFs would be subject to existing prudential limits including limits on investments in financial services companies and limits on capital markets exposure.

“If a bank has a mutual fund, then it can float an infrastructure debt fund, mop up resources from investors, including private equity and strategic investors, and invest the proceeds in the equity of infrastructure projects. Once the projects attain critical mass, they can exit at a profit,” said Mr P. Sitaram, Chief Financial Officer, IDBI Bank.

In the case of NBFCs sponsoring IDF-MF, they will be required to have minimum net owned funds (NOF) of Rs 300 crore; capital to risk weighted assets ratio (CRAR) of 15 per cent; and net non-performing assets of less than 3 per cent of net advances.

Further, NBFCs should have been in existence for at least five years; earning profits for the last three years and their performance should be satisfactory.

Post-investment in the IDF-MF, the CRAR of the NBFC should not be less than that prescribed and it should continue to maintain the required level of NOF.

IDF floated as NBFC

Sponsors (banks and NBFC-IFC) will have to contribute a minimum equity of 30 per cent and a maximum equity of 49 per cent in IDF-NBFC.

Like in the case of IDF-MF, banks acting as sponsor to IDF-NBFCs would be subject to existing prudential limits including limits on investments in financial services companies and limits on capital markets exposure.

In the case of NBFC-IFC floating an IDF-NBFC, the IDF must have a minimum NOF of Rs 300 crore. It should have been assigned a minimum credit rating of ‘A' or equivalent by an accredited rating agency and have a minimum CRAR of 15 per cent.

Further, the IDF-NBFC can invest only in public-private partnerships and post commercial operation date infrastructure projects which have completed at least one year of satisfactory commercial operation.

It should also be a party to a tripartite agreement with the concessionaire and the project authority for ensuring compulsory buyout with termination payment.

Post-investment in the IDF-MF, the CRAR of the NBFC should not be less than that prescribed and it should continue to maintain the required level of NOF.

Banking and Financial Terms

Active Market

This is a term used by stock exchange which specifies the particular stock or share which deals in frequent and regular transactions. It helps the buyers to obtain reasonably large amounts at any time.

Administered Price

The administrative body e.g., the government a marketing board or a trading group determines this price. The competitive market force are not entitled to determine this price. The government fixes a price in accordance with demand supply portion in the market.

Ad-valorem TaxAd-valorem tax is a kind of indirect tax in which goods are taxed by their values. In the case of ad-volorem tax, the tax amount is calculated as the proportion of the price of the goods. Value added Tax (VAT) is an ad-volorem Tax.

Advanced Countries

Advanced countries are countries which are industrially advanced, having high national and per capita income and ensure high rate of capital formation. These countries possess highly developed infrastructure and apply most updated and advanced technical know-how in their productive activities. A strong and well organised financial structure is found in these advanced countries.

Amalgamation

It means ‘merger’. As and when necessity arises two or more companies are merged into a large organisation. This merger takes place in order to effect economies, reduce competition and capture market. The old firms completely lose their identity when the merger takes place.

Appreciation

Appreciation means an increase in the value of something e.g., stock of raw materials or manufactured goods. It also includes an increase in the traded value of a currency. It is the antonym of Depreciation. When the prices rise due to inflation, appreciation may occur. It causes scarcity or increase in earning power.

Arbitrage

When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets.

Arbitration

Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees.

Auction

When a commodity is sold by auction, the bids are made by the buyers. Whose ever makes the highest bid, gets the commodity which is being sold. The buyers make the bid
taking into consideration the quality and quantity of the commodity.

Autarchy

If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries.

Automation

Automation means the use of machinery & technology to replace the labour’s work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation.

Balanced Budget

When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget.

Balance of Payment

Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.

Balance of Trade

Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.

Balance Sheet

Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.

Bank

Bank is a financial institution. It accepts funds on current and deposit accounts. It also lends money. The bank pays the cheques drawn by customers against current and deposits accounts. The bank is a trader that deals in money and credit.

Bank Draft

Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque.

Bank Rate

Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.

Bilateralism

It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others.

Birth Rate

Birth Rate (or Crude Birth Rate) is number of the births per thousand of the population during a period, usually a year. Only live births are included in the calculation of birth rate.

Black Money

It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.

Blue Chip

It is concerned with such equity shares whose purchase is extremely safe. It is a safe investment. It does not involve any risk.

Blue Collar Jobs

These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.

Brain-Drain

It means the drift of intellectuals of a country to another country. Scientists, doctors and technology experts generally go to other prominent countries of the world to better their lot and earn huge sums of money. This Brain-Drain deprives a country of its genius and capabilities.

Bridge Loan

A loan made by a bank for a short period to make up for a temporary shortage of cash. On the part of borrower, mostly the companies for example, a business organization wants to install a new company with new equipments etc. while his present installed company / equipments etc. are not yet disposed off. Bridge loan covers this period between the buying the new and disposing of the old one.

Budget

It is a document containing a preliminary approved plan of public revenue and public expenditure. It is a statement of the estimated receipt and expenses during a fixed period, it is a comparative table giving the accounts of the receipts to be realized and of the expenses to be incurred.

Budget Deficit

Budget may take a shape of deficit when the public revenue falls short to public expenditure. Budget deficit is the difference between the estimated public expenditure and public revenue. The government meets this deficit by way of printing new currency or by borrowing.

Bull

Bull is that type of speculator who gains with the rise in prices of shares and stocks. He buys share or commodities in anticipation of rising prices and sells them later at a profit.

Bull Market

It is a market where the speculators buy shares or commodities in anticipation of rising prices. This market enables the speculators to resale such shares and make a profit.

Buoyancy

When the government fails to check inflation, it raises income tax and the corporate tax. Such a tax is called Buoyancy. It concerns with the revenue from taxation in the period of inflation.

Business Cycle

Business cycle (also known as trade cycle) are species of fluctuations in the economic activity of organised communities. It is composed of period of good trade characterised
by rising prices and low unemployment, alternating with period of bad trade characterised by falling prices and high unemployment. Every trade cycle have five different subphases–depression, recovery, full employment, prosperity (boom) and recession.

Call Money

Call money is in the form of loans and advances which are payable on demand or within the number of days specified for the purpose.

Capital Budgeting

Capital budgeting represents the process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects. In other words, it is the process of budgeting capital expenditure by means of an annual or longer period capital budget.

Capital-labour Ratio

Latest models of machinery and equipment raise the labour efficiency and the output is maximized. Capitallabour ratio is the amount of capital against the given labours that a firm employs. Capital-labour ratio is the ratio of capital to labour.

Capital Market

Capital market is the market which gives medium term and long term loans. It is different from money market which deals only in short term loans.

Capitalism

Capitalism is an economic system in which all means of production are owned by private individuals Selfprofit motive is the guiding feature for all the economic activates under capitalism. Under pure capitalism system economic conditions are regulated solely by free market forces. This system is based on ‘Laissez-faire system’ i.e., no state intervention. Sovereignty of consumer prevails in this system. Consumer behaves like a king under capitalism.

Cash Reserve Ratio (CRR)

The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR. It influences the commercial bank’s volume of credit because variation in CRR affects the liquidity position of the banks and hence their ability to lend.

Census

Census gives us estimates of population. Census is of great economic importance for the country. It tells us the rate at which the total population is increasing among different age groups. In India census is done after every 10 years. The latest census in India has been done in 2001.

Central Bank
Central Bank may be defined as the apex barking and monetary institution whose main function is to control, regulate and stabilize the banking and the monetary system of the country in the national interest.

Cheque

Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money.

Clearing Bank

Clearing bank is one which settles the debits and credits of the commercial banks. Even of the cash balances are lesser, clearing bank facilitates banking operation of the commercial bank.

Clearing House

Clearing house is an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation.

Closed Economy

Closed economy refers to the economy having no foreign trade (i.e., export and import). Such economies depend exclusively on their own internal domestic resources and have
no dependence on outside world.

Collusion

Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion.

Coinage

Art and practice of making coins is called coinage. The metal is melted and moulded to shape into a coin. The coinage is a medium of exchange (money).

Collectivism

Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection.

Commercial Bank

Commercial Bank is an institution of finance. It deals with the banking services through its branches in whole of the country. Operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank.

CommunismCommunism is a political and economic system in which the state makes the major economic decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system.

Core SectorEconomy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries.

Corporation Tax

It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for.

Cost-push InflationIt arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.

Credit RationingCredit rationing takes place when the banks discriminates between the borrowers. Credit rationing empowers the bank to lend to some and to refuse to lend to others. In this way credit rationing restricts lending on the part of bank.

Credit SqueezeMonetary authorities restrict credit as and when required. This credit restriction is called credit squeeze. Monetary authorities adopt the policy of credit squeeze to control inflationary pressure in the economy.

Custom DutyCustom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.

Cyclical UnemploymentIt is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business
cycle turns up again.

Dear Money

Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.

Death Duty

It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former.

Death Rate

Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death rate.
A country having high life expectancy will have a high crude death rate.

DecentralisationDecentralisation means the establishment of various unit of the same industry at different places. Large scale organisation or industry can not be run at one particular place or territory. In order to increase the efficiency of the industry, various units at different places are located.

Debt Service (Total)

The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF.

Deficit Financing

It is a practice resorted to by modern government of spending more money than it receives in revenue. It is a policy of bridging a deficit between governments expenditure and revenue. Deliberately budgeting for a deficit is called deficit financing. This practice was popularised by Prof. J. M. Keynes to deal with the depression and unemployment situations and to stimulate economic activity. Deficit financing, though having inflationary effects, has now become a common practice in all countries.

Deflation

Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the general price level falls and the value of money rises.

Devaluation

The loss of value of currency of a country relative to other foreign currency is known as devaluation. Devaluation is a process in which the government deliberately cheapens the exchange value of its own currency in terms of other currency by giving it a lower exchange value. Devaluation is used for improving, the balance of payment situation in the country.

Direct Tax

A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax.

Disinflation

It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-inflationary measure.

DissavingDissaving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality.

Dividend

Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors.

Economic Integration

Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration.

Engel's Law

This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa.

Estate DutyIt is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature.

Excise Duty

It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature.

Face ValueIt refers to that normal value of coin at which the coin circulates and is accepted in the discharge of debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value.

Fascism

It is a form of political system. In it every economic consideration rests on one criterion—the increase in the people's standard of living. It also lays emphasis on military
strength and prestige of the country. It is the extreme nationalism and the ultimate goal is self-sufficiency.

Federal EconomyIt refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the centre and the states are independent in the exercise of this authority.

Fiduciary IssueGenerally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation.

Fertility Rate

The term fertility refers to the actual bearing of children or ‘occurrence of births’. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy.

Fiscal PolicyFiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole.

GEM

GEM (Gender Empowerment Measure) is a composite index measuring gender inequality in three basic dimensions of empowerment–economic participation and decision making, political participation and decision making, and power over economic resources.

GDI

GDI (Gender Related Development Index) is a composite index measuring average achievement in the three basic dimensions captured in the human development index–a long and healthy life, knowledge and a decent standard of living–adjusted to account for inequalities between men and women.

Gini-coefficientIt represents the measurement of inequality derived from the ‘Lorenz Curve,’ with every increase in the degree of inequality, the curvature of the Lorenz Curve also increases and
the area between the curve and 45° line becomes larger.
The Gini-coefficient is measured as—
G =Area between Lorenz Curve & 45° Line/Area above the 45° Line

Giffin Goods

Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward from left to right. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours.

Gresham's Law

“Bad money (if not limited in quantity) drives good money out of circulation”—This statement was given by Sir Thomas Gresham, the economic Adviser of Queen Elizabeth. This law states that people always want to hoard good money and spend bad money when two forms of money are in circulation at the same time.

Gross Domestic Product (GDP)It is the money value of all final goods and services produced within the geographical boundaries of the country during a given period of time (usually a year). GDP can be calculated both at current prices and at constant prices. If we add net factor income from abroad to the GDP, we get ‘Gross National Product’ (GNP).

Gross National Product (GNP)

It refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

Gross National Product Deflator

It is a Price Index Number used to correct the money value of Gross National Product (GNP) for price changes so as to isolate the changes which have taken place in the physical output of goods and services.

Guild Socialism

This form of socialism accepts the leadership of artisans. The operation of the whole economy specially the management and control of industries lies in the hands of artisans Socialism established by artisans is termed a Guild Socialism.

HDI

HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human life–a long and healthy life, knowledge and a decent standard of living.

Import Duty

Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.

Indirect Tax

Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense to another.

Inflation

A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising.

Joint Demand

Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other.

Joint Sector

When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector.

Labour Union

Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting ‘collective bargaining’ measures with the management of the industry in particular.

Laffer Curve

This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rates.

Laissez Faire

It is a French word meaning ‘non-interference’. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals.

Life Expectancy at Birth

The number of years a newborn infant would live if prevailing pattern of age specific mortality rates at the time of birth were to stay the same throughout the child’s life.

Liquidation

It refers to the termination (or winding up) of a registered company. Liquidation takes place because of company's insolvency. In liquidation, assets are turned into cash for settling outstanding debts and for apportioning the balance, if any, amongst the owners.

Liquidity

Assets which can easily be converted into cash money are said to have liquidity. Land does not possess liquidity at it takes longer time to get converted into cash.

Liquidity Ratio

The commercial banks under banking regulations have to maintain a certain specified proportion of their total deposits of various categories in liquid assets. This maintainable proportion is called liquidity ratio.

Lock-out

Lock-out refers to such a situation when the management does not permit the workers to work unless they agree to accept the employer's term. Lock-out is the closing of work by the management for an uncertain period of time to put pressure on the labour union. It is an action by the employer equivalent to a strike by employees.

Lorentz Curve

This curve shows the degree of inequalities of a frequency distribution in a graphical manner. It is a curve on a graph which shows the cumulative proportion of a statistical population against this cumulative share of some characteristic. This curve is commonly used to depict income distribution showing the cumulative percentage of people from the poorest up and their cumulative share of national income.

Lump Sum Tax

Lump sum tax is a fixed amount which has imperative nature irrespective of the income level. This tax is not equitable in nature.

Merit Goods

Merit goods refer those goods that are very essential to the society as a whole and hence the government ensures their availability to all consumers, regardless of their ability to pay to reasonable price.

Mixed EconomyIt refers to that economic system in which both private and public sector co-exists. Indian economy is an example of a mixed economy.

Monetary Policy

Monetary policy comprises all measures applied by the monetary authorities with a view to produce a deliberate impact on the nature and volume of money so as to achieve the objectives of general economic policy. It aims at regulating the flow of currency, credit and other money substitutes in an economy with a view to affect the total stock of such assets as well as to influence the demand of the community for such assets.

Monetary Reforms

When a new currency is introduced in a country due to hyperinflation or due to a deliberate policy measure (such as decimalization) it is termed as monetary reform.

Monopoly

Monopoly refers to that market structure where there is only one seller in the market who controls the entire market supply and no substitute of the product is available in the market.

Monopsony

Monopsony is that market situation in which there is only one single buyer of the product in the market. In other word, ‘buyer's monopoly’ is termed as monopsony.

Multinational Company

It is a large scale company which has its production base in several countries and the bulk of the production is produced in outside nations. This company produces more overseas
than they do in its parent country. Increased trade and economies of scale have encouraged such type of companies in the recent years.

National Income

In the simplest way it can be defined as ‘factor income accruing to the national residents of a country.’ It is the sum of domestic factor income and net factor income earned from abroad. Net national product at factor cost is called national income.

Net National Product (NNP)

When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP).

Oligopoly

Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production.

Open Economy

Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy.

Okun’s Law

Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 2•5% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okun’s Law.

Perfect Competition

Perfect competition is the market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence market price.

Poverty Line

Poverty line is a virtual line demarcating persons living below and above it. In India all those persons are treated living below poverty line who are not able to earn that much of income which is not sufficient to acquire food equivalent to 2100 calories per person per day in urban areas and 2400 calories per person per day in rural areas. As per UNDP, one US dollar (1993 PPP US $) per person per day is treated as poverty line.

PQLI

PQLI is known as Physical Quality of Life Index which is used to assess the level of social development. This index was developed by Jim Grant for The Overseas Development Council PQLI is calculated by using indices of (i) Adult literacy rate, (ii) IMR, (iii) Life Expectancy.

Price Mechanism

Price mechanism signifies the working of those market forces which establishes equilibrium in the economy. Laissez faire policy is the basis for the working of price mechanism.

Price Ring

It is an unofficial syndicate by which the prices are controlled with the prior understanding among the traders. These dealers under a price ring decide not to over-bid one another at the public auction to keep the prices low. This price ring may discourage outsiders from coming to the auctions.

Private Sector

Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector.

Privatisation

Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation.

Public Debt

Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt.

Public Goods

Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods.

Public SectorPublic sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur.

Peril Point

It indicates that point beyond which tariff reductions would threaten the existence of domestic industry.

Quick Asset

Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash.

Quoted Company

That company is called quoted company whose share prices are quoted on a stock exchange.

Reflation

It signifies general increase in the level of business activity in the economy. Reflation generally involves greater government expenditure and the easing of credit to encourage increased production.

Regressive Tax

It is a tax in which rate of taxation falls with an increase in income. In regressive taxation incidence falls more on people having lower incomes than that of those having higher incomes.

Repressed Inflation

It is a state in which aggregate demand is greater than the total supply of goods and services in an economy, but prices are prevented from rising to eliminate excess demand. The holding down of price is sometimes done by government as a means of suppressing inflation.

Reserve Asset Ratio

It is the ratio of a bank’s reserve assets to its eligible liabilities.

Revolving Credit

It is a bank credit that is renewed automatically until notice of cancellation is received. Revolving credits may be sanctioned for an unlimited amount in total but with a limit on
the amount that may be drawn at any one time or within a specified period, e.g., one month.

Seasonal UnemploymentIt is that unemployment which is caused by seasonal variation in demand for labour by various industries, such as agriculture, construction and tourism. Seasonal unemployment
normally declines in spring as more outdoor work can be undertaken.

Security

Security refers to a share, bond or government stock that can be bought and sold, usually on the stock exchange or on a secondary market, and carries a right to some form of income, either in the form of a fixed rate of interest or dividends.

Shadow PriceIt is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare.

Share Capital

It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value of the issued shares.

Single Tax System

It is a system in which all tax revenues are raised from one form of taxation.

Socialism

The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer co-operatives.

Social SecurityProvision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security.

Soft CurrencyA currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling.

Special Drawing Rights (SDRs)

It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies.

Special Tax (Unit Tax)

It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem.

Stabilization Policy

It is Government economic policy announced at reducing the cyclical and other fluctuations that take place in a market economy.

Stagflation

It is a state of the economy in which economic activity is slowing down, but wages and prices continue to rise. The term is a blend of the words stagnation and inflation.

Surplus Value

It is the difference between the amount paid to a factor and the revenue earned by selling the output it produced.

Tariff

It is a tax or a duty on imports, which can be levied either on physical units, e.g., per tonne (specific), or on value (ad-valorem). Tariffs may be imposed for a variety of reasons including; to raise government revenue, to protect domestic industry from subsidized or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments.

Trade Gap

It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.

Trade Union

It is an organisation of employees who join together to further their interests. Trade Unions negotiate on behalf of their members in collective bargaining with employers, and in the event of a dispute may put pressure on employers by withdrawing labour (i.e. strike) or by some less drastic form of action (i.e. go-slow, working to rule).

Transfer PaymentIt is a payment made by public authority other than one made in exchange for goods or services produced. Transfer payments are not the part of National Income. Examples includes unemployment benefit and child benefits.

Vital Statistics

Vital statistics refers to those data which are associated with vital events of masses like birth, death, marriage divorce etc.

VAT (Value Added Tax)

VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation. In other words, the tax already paid can be claimed at the next stage of value addition.

Wealth Tax

Wealth tax is that tax which is imposed on the value of total assets but the wealth upto a certain limit is exempted from such tax.

Welfare State

It refers to a nation that provides to all at least the minimum standards in respect of education, health, housing, pensions and other social benefits.

Wholesale Price Index
Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.

IBPS CLERKS EXAM PRACTICE MCQs

1. SBI commercial & International Bank Limited acquired by ...........?
1) Reserve Bank of India
2) Ministry of Commerce
3) SEBI
4) State bank of India
5) None

2. RBI ordered that more than what denomination the Demand Drafts should not be issued against Cash, particularly by RRBs?
1) Rs.1000
2) Rs.10,000
3) Rs.50,000
4) Rs.1,50,000
5)None

3. LIC(Life Insurance Corporation of India) made a pact to issue Credit Cards with ...........?
1) HDFC
2) AXIS Bank
3) Corporation Bank
4) ICICI
5) Andhra Bank

4. Recently EXIM Bank (Export and Import Bank of India) provided $ 20 million line of credit to...........?
1) Switzerland
2) Zimbwabe
3) Swaziland
4) Australia
5) New Zealand

5. Karnataka State Highway improvement project got $ 315 million from ...........?
1) Asian Development Bank
2) World Bank
3) IMF
4) AFD
5) ODA

6. Most active segment of the money market in India is...........?
1) Repo rate
2) Statutory Liquidity Ratio
3) Call money market
4) Certificate of Deposits market
5) Term note market

7. Syndicated loan means ...........?
1) the loan offered to BPL families
2) loan offered to one bank by different states in India
3) loan taken by different borrowers from one bank in the single account
4) loan given by the group of banks to single borrower
5) loans ban by RBI

8. India signed to get Rs. 1600 cr from German Bank to finance world biggest solar power plants in Dhule district of
1) Andhra Pradesh
2) Karnataka
3) Mysore
4) Maharastra
5) Goa

9. $ 200 million will be given to power distribution in Madhya Pradesh by ….
1) World Bank
2) Asian development Bank
3) AFD
4) International Monetary Fund
5) IFC

10. $ 648 million to be provided by world bank to construct 444 MW hydro power project in...........
1) Uttarakhand
2) Uttar Pradesh
3) Assom
4) Goa
5) Rajasthan

11. LIBOR (London Inter bank Offered Rate) being published by...........
1) BSE
2) Thomson Reuters
3) Washington Post
4) New York Times
5) London University

12. Till Kharif 2010, how many farmers covered under National Agriculture Insurance Scheme ...........
1) 20.25 crore
2) 18.65 crore
3) 12.4 crore
4) 9.6 crore
5) 17.14 crore

13. Center for Monitoring Indian Economy estimated 2011-12 fiscal year growth will be............percent?
1) 5.2
2) 9.1
3) 8.1
4) 10.5
5) 9.5

14. Rastriya Arogya Nidhi available to...........to get medical assistance.
1) The inhabitants of poor states
2) The inhabitants of North eastern states
3) BPL families
4) MGNREGA domestic workers only
5) None

15. Dal Bhat Scheme provides a meal for Rs.5 to poor. This is the scheme of...........?
1) Bihar
2) Tamilnadu
3) Arunachal Pradesh
4) Jharkhand
5) Assam

16. Which state has idea of bringing the federations of Self Help Groups (SHG)?
1) Karnataka
2) Maharastra
3) Andhra Pradesh
4) Tamilnadu
5) Uttar Pradesh

17. The chairman of Parliamentary standing committee on Law and Justice?
1) Murali Manohar Joshi
2) P.C.Chako
3) L.K.Advani
4)Yashwanth Sinha
5) Abhisheik Manu Singhvi

18. On 21 July 2011, for the defence pensioners which scheme launched?
1) Sudha
2) Suvidha
3 ) Sugam
4) Saral
5) Sangam

19. International Atomic Energy Agency was invited by India to visit ........... Nuclear plant recently?
1) Apsara
2) Druva
3) Kalpakam
4) Jaitapur
5) None

20. Kaveri Engine to be used in light combat aircraft ( LAC). This engine to be developed with the aid of...........?
1) France
2) USA
3) UK
4) Germany
5) Japan

21. Recently India and which country sign memorandum of understanding in the cooperation of Rural Development?
1) Brunai
2) Laos
3) Lesotho
4) South Africa
5) None

22. Who heads the panel to estimate the losses of power distribution companies in 2007-2010?
1) Narla Tatha Rao
2) Vidhya Sagar
3) V.K.Shunglu
4) Shantharam
5) Vijay C Kelkar

23. On August 13 , 2011 which multiple missile trail version successful?
1) Agni - II
2) Pruthvi- I
3) Nag
4) Akash
5) Brahmos - III

24. Fifth conference of SAARC speakers and parliamentarians held recently in..........
1) New Delhi
2) Mumbai
3) London
4) Dhaka
5) Male

25. Presently India is the third largest producer of Steel in the world. It becomes the second Largest producer by which year as per the estimate of central government recently?
1) 2013
2) 2020
3) 2045
4) 2050
5) 2015

26. Sevottam Certificate got by...........?
1) GPO, Mumbai
2) GPO, Rastrapathi Bhavan
3) GPO, Hyderabad
4) Gol Dak Khana, the Newdelhi GPO
5) All of above

27. Bank deposits grow by ...........percent during the March 2011- July 2011?
1) 8
2) 5.5
3) 6.1
4) 7
5) 9

28. Raise in inflation rate leads to decline in ...........?
1) interest rate
2) raise in the deposits in the banks
3) decrease the real interest rate
4) raise the credit growth by banks
5) None

29. Difference between interest earned and interest paid is called ..........?
1) Gross Interest Income
2) Paid Interest Income
3) Free Interest Income
4) Net Interest Income
5) All of above

30. Express Remit is the brand name remittance facility of ...........?
1) SBH
2) Allahabad Bank
3) Repco Bank
4) UBI
5) SBI

31. Rs.1000 can be withdrawn from the Point of Sales Terminals ( POS) as per the order of RBI. Which is the first bank to introduce this facility?
1) SBI
2) SBH
3) Union Bank of India
4) ICICI
5) HDFC

32. Recently RBI advised the banks to reduce the Net Interest Margin (NIM) come down to see the double digit growth. What is meant by it ...........
1) Banks accept the deposits at high rate of interest and lend at higher rate of interest
2) Banks accept the deposits at high rate of interest and lend at no rate of interest
3) Banks accept the deposits at high rate of interest and lend at lower rate than the present rates
4) Banks accept the deposits at lower rate of interest and lend at higher rate
5) None

33. Interest Corridor includes ...........?
1) Base rate and savings rate
2) Bank rate and Reverse Repo rate
3) Base rate and Repo rate
4) Repo rate and Reverse Repo rate
5) None

34. Asset-Liability mismatch usually happened in...........?
1) Home Loan and Infrastructure Project Financing
2) Education loan and personal loan
3) Personal loan and marriage loan
4) Travel loan and marriage loan
5) Education loan and School Fees

35. First Dedicated Education Loan Company CREDILA is the associate body of...........?
1) HDFC
2) Andhra Bank
3) United Bank of India
4) Axis bank
5) SBH

36. Portal-linked service, which enables a dissatisfied customer to SMS 'unhappy' to 8008202020, if he is a customer of...........this is the first of its kind in India?
1) SBI
2) IDBI
3)HDFC
4) ICICI
5) Indian bank

37. INFINET is a communication channel for transmission of electronic communication by banks. INFINET stands for...........?
1) Indian Financial Internal Network Electronic Transaction
2) Indian Financial Internal Network
3) Indian National Financial Internal Net Extra Track
4) Indian Financial Network
5) None

38. RBI subsidiary BRBNMPL related statements are given. Pick the incorrect one?
1) Bharatiya Reserve Bank Note Mudran Private Limited was established by RBI
2) its wholly owned subsidiary of RBI established on 3rd February 1995
3) It is established to handover the functions of RBI to mint currency
4) It is established to bridge the gap between the supply and demand for bank notes in the country.
5) The company manages 2 Presses one at Mysore in Karnataka and the other at Salboni in West Bengal.

39. Rohinton Nariman is the new ...........of India?
1) Election Commissioner
2) Auditor General
3) Solicitor General
4) Army General
5) RBI Governor

40. 110th constitutional amendment bill connected to...........?
1) Reservation of woman local bodies
2) Reservation of SC and ST in the Assembly elections
3) Jan lokpal Bill
4) GST council
5) Direct Taxes Code

41. Rs.117.64 Crores released by the Central Government to promote production of...........?
1) Tobacco
2) Food grains
3) Nutri-cereals
4) Pulses
5) Rice

42. Sucheta becomes first Indian woman to cross ...........?
1) Antartica
2) Arctic Ocean
3) Sahara Desert
4) Gobi Desert
5) Suez Canal

43. Standard & Poor downgrades USA AAA credit rating to
1) AAA ++
2) AAB
3) BBB
4) AA+
5) AB+

44. Which coach became first one to train 100 cricket test matches in the world?
1) Waqar Younus
2) Greg Chappel
3) Duncan Fletcher
4) David Boon
5) Kapil Dev

45. 2014 FIFA world Cup to be held from 12 June to 13 July in
1) London (Britain)
2) Rio ( Brazil)
3) Incheon (South Korea)
4) Washington (USA)
5) None

46. Who was called the Doctor Death, died recently, helped many people to die, if they are suffering from the dreaded and long time diseases?
1) Dr. Subodh Roy
2) Kimitachi Penogogi
3) Dr.Jack Kevorkian
4) Dr. Shantha Singh
5) None

47. India-South Africa trade to touch $………...billion before 2014?
1) 25
2) 10
3) 50
4) 15
5) 60

48. Modi cup is related to……….?
1) Cricket
2) Golf
3) Hockey
4) Tennis
5) Carrom

49. Arasu Cable TV Corporation belongs to the state of ………..?
1) Tamilnadu
2) Kerala
3) Andhra Pradesh
4) Puduccherry
5) None

50. Direct Tax do not include ………..?
1) Income Tax
2) Corporate Duty
3) Service Tax
4) Sales Tax
5) Wealth Tax

ANSWERS:

1)4 2)3 3)2 4)3 5)1 6)3 7)4 8)4 9)2
10)1 11)2 12)5 13)3 14)3 15)4 16)3 17)5
18)5 19)4 20)1 21)3 22)3 23)5 24)1 25)1
26)4 27)2 28)3 29)4 30)5 31)3 32)3 33)4
34)1 35)1 36)1 37)4 38)3 39)3 40)1 41)3
42)4 43)4 44)3 45)2 46)3 47)4 48)3 49)1
50)4.