Human Development Report 2011

The 2011 Report—Sustainability and Equity: A Better Future for All—released by the United Nations Development Programme (UNDP) on November 2, 2011, notes that Norway, Australia and the Netherlands lead the world in the 2011 Human Development Index (HDI), while the Democratic Republic of the Congo, Niger and Burundi are at the bottom of the Human Development Report’s annual rankings of national achievement in health, education and income.

The United States, New Zealand, Canada, Ireland, Liechtenstein, Germany and Sweden round out the top 10 countries in the 2011 HDI, but when the Index is adjusted for internal inequalities in health, education and income, some of the wealthiest nations drop out of the HDI’s top 20: the United States falls from #4 to #23, the Republic of Korea from #15 to #32, and Israel from #17 to #25.

Gender Inequality Index ranks India at 129 and Inequality Adjusted HDI rank is 93.

The 2011 HDI covers a record 187 countries and territories, up from 169 in 2010, reflecting in part improved data availability for many small island states of the Caribbean and the Pacific.

The 2011 Report also notes that income distribution has worsened in most of the world, with Latin America remaining the most unequal region in income terms, even though several countries, including Brazil and Chile, are narrowing internal income gaps. Yet in overall IHDI terms, including life expectancy and schooling, Latin America is more equitable than sub-Saharan Africa or South Asia.

To assess income distribution, as well as varying levels of life expectancy and schooling within national populations, the IHDI uses methodology developed by the renowned British economist Sir Anthony Barnes Atkinson.

Average HDI levels have risen greatly since 1970—41 percent globally and 61 percent in today’s low-HDI countries—reflecting major overall gains in health, education and income. The 2011 HDI charts progress over five years to show recent national trends: 72 nations moved up in rank from 2006 to 2011, led by Cuba (+10 to #51), Venezuela and Tanzania (+7 each to #73 and #152, respectively), while another 72 fell in rank, including Kuwait (-8 to #63) and Finland (-7 to #22).

The 10 countries that place last in the 2011 HDI are all in sub-Saharan Africa: Guinea, Central African Republic, Sierra Leone, Burkina Faso, Liberia, Chad, Mozambique, Burundi, Niger, and the Democratic Republic of the Congo.

The Gender Inequality Index (GII) shows that Sweden leads the world in gender equality, as measured by this composite index of reproductive health, years of schooling, parliamentary representation, and participation in the labour market. Sweden is followed in the gender inequality rankings by the Netherlands, Denmark, Switzerland, Finland, Norway, Germany, Singapore, Iceland and France.

Yemen ranks as the least equitable of the 146 countries in the GII, followed by Chad, Niger, Mali, Democratic Republic of the Congo, Afghanistan, Papua New Guinea, Liberia, Central African Republic and Sierra Leone.

The Multi-dimensional Poverty Index (MPI) examines factors at the family level—such as access to clean water and cooking fuel and health services, as well as basic household goods and home construction standards—that together provide a fuller portrait of poverty than income measurements alone.

Some 1.7 billion people in 109 countries lived in ‘multi-dimensional’ poverty in the decade ending in 2010, by the MPI calculus, or almost a third of the countries’ entire combined population of 5.5 billion. That compares to the 1.3 billion people estimated to live on US$1.25 a day or less, the measure used in the UN Millennium Development Goals, which seeks to eradicate “extreme” poverty by 2015.

Niger has the highest share of multi-dimensionally poor, at 92 percent of the population, followed by Ethiopia and Mali, with 89 percent and 87 percent, respectively. The 10 poorest nations as measured by the MPI are all in sub-Saharan Africa. But the largest group of multi-dimensionally poor is South Asian: India, Pakistan and Bangladesh have some of the highest absolute numbers of MPI poor.

India has by far the largest number of multi-dimensionally poor, according to the Report–612 million, more than half the country’s population, and larger than the total number of people measured according to the same criteria in all sub-Saharan countries.

The MPI also provides insight into environmental problems in the poorest households, including indoor air pollution and disease from contaminated water supplies. The Report notes that in South Asia and sub-Saharan Africa, more than 90 percent of the multi-dimensionally poor cannot afford clean cooking fuel, relying principally on firewood, while some 85 percent lack basic sanitation services.

The 2011 Human Development Report offers important new contributions to the global dialogue on this challenge, showing how sustainability is inextricably linked to basic questions of equity—that is, of fairness and social justice and of greater access to a better quality of life. Sustainability is not exclusively or even primarily an environmental issue, as the Report so persuasively argues. It is fundamentally about how we choose to live our lives, with an awareness that everything we do has consequences for the 7 billion of us here today, as well as for the billions more who will follow, for centuries to come.

Understanding the links between environmental sustainability and equity is critical if we are to expand human freedoms for current and future generations. The remarkable progress in human development over recent decades, which the global Human Development Reports have documented, cannot continue without bold global steps to reduce both environmental risks and inequality. The Report identifies pathways for people, local communities, countries and the international community to promote environmental sustainability and equity in mutually reinforcing ways.

In the 176 countries and territories where the United Nations Development Programme is working every day, many disadvantaged people carry a double burden of deprivation. They are more vulnerable to the wider effects of environmental degradation, because of more severe stresses and fewer coping tools. They must also deal with threats to their immediate environment from indoor air pollution, dirty water and unimproved sanitation. Forecasts suggest that continuing failure to reduce the grave environmental risks and deepening social inequalities threatens to slow decades of sustained progress by the world’s poor majority—and even to reverse the global convergence in human development.

Major disparities in power shape these patterns. New analysis shows how power imbalances and gender inequalities at the national level are linked to reduced access to clean water and improved sanitation, land degradation and deaths due to indoor and outdoor air pollution, amplifying the effects associated with income disparities. Gender inequalities also interact with environmental outcomes and make them worse. At the global level governance arrangements often weaken the voices of developing countries and exclude marginalized groups.

Yet, there are alternatives to inequality and un-sustainability. Growth driven by fossil fuel consumption is not a prerequisite for a better life in broader human development terms. Investments that improve equity—in access, for example, to renewable energy, water and sanitation, and reproductive healthcare—could advance both sustainability and human development. Stronger accountability and democratic processes, in part through support for an active civil society and media, can also improve outcomes. Successful approaches rely on community management, inclusive institutions that pay particular attention to disadvantaged groups, and cross-cutting approaches that coordinate budgets and mechanisms across government agencies and development partners.

The financing needed for development—including for environmental and social protection— will have to be many times greater than current official development assistance. Today’s spending on low-carbon energy sources, for example, is only 1.6 percent of even the lowest estimate of need, while spending on climate change adaptation and mitigation is around 11 percent of estimated need. Hope rests on new climate finance. While market mechanisms and private funding will be vital, they must be supported and leveraged by proactive public investment. Beyond raising new sources of funds to address pressing environmental threats equitably, the Report advocates reforms that promote equity and voice. Financing flows need to be channelled towards the critical challenges of un-sustainability and inequity— and not exacerbate existing disparities.

Human development, which is about expanding people’s choices, builds on shared natural resources. Promoting human development requires addressing sustainability—locally, nationally and globally—and this can and should be done in ways that are equitable and empowering, says the Report.

The environmental disaster scenario leads to a turning point before 2050 in developing countries—their convergence with rich countries in HDI achievements begins to reverse. These projections suggest that in many cases the most disadvantaged people bear and will continue to bear the repercussions of environmental deterioration, even if they contribute little to the problem. For example, low HDI countries have contributed the least to global climate change, but they have experienced the greatest loss in rainfall and the greatest increase in its variability, with implications for agricultural production and livelihoods.

Around the world rising HDI has been associated with environmental degradation. Countries with faster improvements in the HDI have also experienced faster increases in carbon dioxide emissions per capita. These changes over time—rather than the snapshot relationship—highlight what to expect tomorrow as a result of development today.

On the other hand, while incomes and economic growth have an important explanatory role for emissions, the relationship is not deterministic. And complex interactions of broader forces change the risk patterns. For example, international trade allows countries to outsource the production of goods that degrade the environment; large-scale commercial use of natural resources has different impacts than subsistence exploitation; and urban and rural environmental profiles differ.

Several countries have achieved significant progress both in the HDI and in equity and environmental sustainability. Sweden is notable for its high reforestation rate compared with regional and global averages.

More generally, however, environmental trends over recent decades show deterioration on several fronts, with adverse repercussions for human development, especially for the millions of people who depend directly on natural resources for their livelihoods. Globally, nearly 40 percent of land is degraded due to soil erosion, reduced fertility and overgrazing. Land productivity is declining, with estimated yield loss as high as 50 percent in the most adverse scenarios. Agriculture accounts for 70–85 percent of water use, and an estimated 20 percent of global grain production uses water un-sustainably, imperilling future agricultural growth.

Deforestation is a major challenge. Between 1990 and 2010, Latin America and the Caribbean and Sub-Saharan Africa experienced the greatest forest losses, followed by the Arab States. The other regions have seen minor gains in forest cover. Desertification threatens the dry-lands that are home to about a third of the world’s people. Some areas are particularly vulnerable—notably Sub-Saharan Africa, where the dry-lands are highly sensitive and adaptive capacity is low.

Adverse environmental factors are expected to boost world food prices 30–50 percent in real terms in the coming decades and to increase price volatility, with harsh repercussions for poor households. The largest risks are faced by the 1.3 billion people involved in agriculture, fishing, forestry, hunting and gathering.

To the extent that women in poor countries are disproportionately involved in subsistence farming and water collection, they face greater adverse consequences of environmental degradation. Many indigenous peoples also rely heavily on natural resources and live in ecosystems especially vulnerable to the effects of climate change, such as small, island developing States, arctic regions and high altitudes.

Evidence suggests that traditional practices can protect natural resources, yet such knowledge is often overlooked or downplayed. The effects of climate change on farmers’ livelihoods depend on the crop, region and season, underlining the importance of in-depth, local analysis. Impacts will also differ depending on household production and consumption patterns, access to resources, poverty levels and ability to cope. Taken together, however, the net biophysical impacts of climate change on irrigated and rain-fed crops by 2050 will likely be negative—and worst in low HDI countries.

The MPI measures serious deficits in health, education and living standards, looking at both the number of deprived people and the intensity of their deprivations. This year the report explores the pervasiveness of environmental deprivations among the multi-dimensionally poor and their overlaps at the household level, an innovation in the MPI.

The poverty-focused lens allows us to examine environmental deprivations in access to modern cooking fuel, clean water and basic sanitation, the report says. These absolute deprivations, important in themselves, are major violations of human rights. Ending these deprivations could increase higher order capabilities, expanding people’s choices and advancing human development.

In developing countries at least 6 people in 10 experience one of these environmental deprivations, and 4 in 10 experience two or more. These deprivations are especially acute among multi-dimensionally poor people, more than 9 in 10 of whom experience at least one. Most suffer overlapping deprivations: 8 in 10 multi-dimensionally poor people have two or more, and nearly 1 in 3 (29 percent) is deprived in all three. These environmental deprivations disproportionately contribute to multi-dimensional poverty, accounting for 20 percent of the MPI—above their 17 percent weight in the index. Across most developing countries deprivations are highest in access to cooking fuel, though lack of water is paramount in several Arab States.

Countries with the lowest share of poor people facing at least one deprivation are mainly in the Arab States and Latin American and the Caribbean (7 of the top 10). Of the countries with the fewest multi-dimensionally poor people with all three environmental deprivations, better performers are concentrated in South Asia—5 of the top 10. Several South Asian countries have reduced some environmental deprivations, notably access to potable water, even as other deprivations have remained severe. And five countries are in both top 10 lists—not only is their environmental poverty relatively low, it is also less intense.

The disease burden arising from indoor and outdoor air pollution, dirty water and unimproved sanitation is greatest for people in poor countries, especially for deprived groups. Indoor air pollution kills 11 times more people living in low HDI countries than people elsewhere. Disadvantaged groups in low, medium and high HDI countries face greater risk from outdoor air pollution because of both higher exposure and greater vulnerability. In low HDI countries more than 6 people in 10 lack ready access to improved water, while nearly 4 in 10 lack sanitary toilets, contributing to both disease and malnourishment. Climate change threatens to worsen these disparities through the spread of tropical diseases such as malaria and dengue fever and through declining crop yields.

Despite near universal primary school enrolment in many parts of the world, gaps remain. Nearly 3 in 10 children of primary school age in low HDI countries are not even enrolled in primary school, and multiple constraints, some environmental, persist even for enrolled children. Lack of electricity, for example, has both direct and indirect effects. Electricity access can enable better lighting, allowing increased study time, as well as the use of modern stoves, reducing time spent collecting fuel wood and water, activities shown to slow education progress and lower school enrolment.

Girls are more often adversely affected because they are more likely to combine resource collection and schooling. Access to clean water and improved sanitation is also especially important for girls’ education, affording them health gains, time savings and privacy.

Household environmental deprivations can coincide with wider environmental stresses, constricting people’s choices in a wide range of contexts and making it harder to earn a living from natural resources: people have to work more to achieve the same returns or may even have to migrate to escape environmental degradation.

Environmental stress has also been linked to an increased likelihood of conflict. The link is not direct, however, and is influenced by the broader political economy and contextual factors that make individuals, communities and society vulnerable to the effects of environmental degradation.

The Gender Inequality Index (GII), updated this year for 145 countries, shows how reproductive health constraints contribute to gender inequality. This is important because in countries where effective control of reproduction is universal, women have fewer children, with attendant gains for maternal and child health and reduced greenhouse gas emissions. For instance, in Cuba, Mauritius, Thailand and Tunisia, where reproductive healthcare and contraceptives are readily available, fertility rates are below two births per woman. But substantial unmet need persists worldwide, and evidence suggests that if all women could exercise reproductive choice, population growth would slow enough to bring greenhouse gas emissions below current levels.

Meeting unmet need for family planning by 2050 would lower the world’s carbon emissions an estimated 17 percent below what they are today.

The GII also focuses on women’s participation in political decision-making, highlighting that women lag behind men across the world, especially in Sub-Saharan Africa, South Asia and the Arab States. This has important implications for sustainability and equity. Because women often shoulder the heaviest burden of resource collection and are the most exposed to indoor air pollution, they are often more affected than men by decisions related to natural resources. Recent studies reveal that not only is women’s participation important but also how they participate—and how much.

And because women often show more concern for the environment, support pro-environmental policies and vote for pro-environmental leaders, their greater involvement in politics and in non-governmental organizations could result in environmental gains, with multiplier effects across all the Millennium Development Goals.

These arguments are not new, but they reaffirm the value of expanding women’s effective freedoms. Thus, women’s participation in decision-making has both intrinsic value and instrumental importance in addressing equity and environmental degradation.

Evidence is accumulating that power inequalities, mediated through political institutions, affect environmental outcomes in a range of countries and contexts. This means that poor people and other disadvantaged groups disproportionately suffer the effects of environmental degradation. New analysis for the Report covering some 100 countries confirms that greater equity in power distribution, broadly defined, is positively associated with better environmental outcomes, including better access to water, less land degradation and fewer deaths due to indoor and outdoor air pollution and dirty water—suggesting an important scope for positive synergies.

The large disparities across people, groups and countries that add to the large and growing environmental threats pose massive policy challenges. But there is cause for optimism. In many respects the conditions today are more conducive to progress than ever—given innovative policies and initiatives in some parts of the world. Taking the debate further entails bold thinking, especially on the eve of the UN Conference on Sustainable Development (Rio+20) and the dawn of the post-2015 era. The Report advances a new vision for promoting human development through the joint lens of sustainability and equity.

A key theme of the Report is the need to fully integrate equity concerns into policies that affect the environment. Traditional methods of assessing environmental policies fall short. They might expose the impacts on the path of future emissions, for example, but they are often silent on distributive issues. Even when the effects on different groups are considered, attention is typically restricted to people’s incomes. The importance of equity and inclusion is already explicit in the objectives of green economy policies. The report proposes taking the agenda further.

Embedding environmental rights in national constitutions and legislation can be effective, not least by empowering citizens to protect such rights. At least 120 countries have constitutions that address environmental norms. And many countries without explicit environmental rights interpret general constitutional provisions for individual rights to include a fundamental right to a healthy environment.

Constitutionally recognizing equal rights to a healthy environment promotes equity by no longer limiting access to those who can afford it. And embodying this right in the legal framework can affect government priorities and resource allocations.

Alongside legal recognition of equal rights to a healthy, well functioning environment is the need for enabling institutions, including a fair and independent judiciary, and the right to information from governments and corporations. The international community, too, increasingly recognizes a right to environmental information.

Where governments are responsive to popular concerns, change is more likely. An environment in which civil society thrives also engenders accountability at the local, national and global levels, while freedom of press is vital in raising awareness and facilitating public participation.

The Report proposes an emphasis on four country-level sets of tools to take this agenda forward:
• Low-emission, climate-resilient strategies—to align human development, equity and climate change goals.
• Public-private partnerships—to catalyse capital from businesses and households.
• Climate deal-flow facilities—to bring about equitable access to international public finance.
• Coordinated implementation and monitoring, reporting and verification systems—to bring about long-term, efficient results and accountability to local populations as well as partners.

Finally, it calls for a high-profile, global Universal Energy Access Initiative with advocacy and awareness and dedicated support to developing clean energy at the country level. Such an initiative could kick-start efforts to shift from incremental to transformative change.

The Report casts light on the links between sustainability and equity and shows how human development can become more sustainable and more equitable. It reveals how environmental degradation hurts poor and vulnerable groups more than others.

GENERAL AWARENESS MCQs FOR BANK EXAMS

1. Equity schemes managed strong NAV gains, which boost their assets' was a news in some financial newspapers. What is the full form of the term NAV as used in above head lines ?
(A) Nil Accounting Variation
(B) Net Accounting Venture
(C) Net Asset Value
(D) New Asset Venture
(D) None of these
Ans : (C)

2. As per reports published in various news papers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 percent—
(A) Of the total investments they made collectively during the year
(B) More than their profits during previous year
(C) Of the total capital of the company
(D) Less than the total expenditure of the companies
(D) None of these
Ans : (B)

3. As per the news published in various news papers Pakistan has imposed 15 per cent regulatory duty on exports of cotton yarn. Why countries are required to impose regulatory duties on exports of some of their commodities while in the eyes of the layman more exports means more foreign exchange and more revenue for the Govt. ?
1. It is done to control the exports of a commodity as it may be needed more in local markets than in foreign countries.
2. It is done to control the general inflation in the country as the inordinate exports of various commodities create imbalance and also cost push inflation.
3. It is a good short time measure to collect more revenue from the exports of the commodity which is in high demand in overseas markets.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (A)

4. As per the reports published in some major news papers 'ADAG companies' made good profits during the year. ADAG companies are popularly known as—
(A) Companies owned by Tata Group
(B) Aditya Birla Companies
(C) Reliance companies
(D) Companies owned by Aptech
(E) None of these
Ans : (C)

5. ONGC – Mittal Energy finds hydrocarbons in two blocks OPL-279 & OPL-285 in Nigerian sea was the news in some major news papers. what is the full form of the term OPL as used in the above head line ?
(A) Oil Prospecting License
(B) Ownership and Partnership Lease
(C) Overseas Private Line
(D) ONGC Petroleum Ltd.
(E) None of these
Ans : (A)

6. "Mutual Funds reported exceptional performance in 2009-10" was the news in major financial news papers recently. What is a mutual fund ?
1. A type of collective investment scheme that pools money from many investors and invest it in stocks, bonds or other money market instruments.
2. It is a subsidiary of a bank or financial company created specially to ralse money to be invested in a particular industry i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else.
3. When several banks and financial companies come together and create a common pool of money to fund
mega infrastructural project like bridges, roads, power plants etc. the common pool is known as Mutual Fund.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (B)

7. As we all know the Bank Rate at present is fixed at 6%. What does it mean in context to the banking operations ?
(A) No bank will be able to give loan to any party on a rate lower than the Bank Rate
(B) Bank should give loan to their priority sector customers/borrowers at the rate of 6% only. They cannot charge less or more than this from their priority sector clients
(C) Banks are required to invest 6% of their total capital on financial inclusion and inclusive banking operations
(D) Banks will be required to give 6% of their total deposits to the Govt. of India for meeting its Balance of Trade requirements
(E) None of these
Ans : (A)

8. As per the reports in various news papers many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organizations/agencies issue the licence for the same ?
(A) Securities & Exchange Board of India (SEBI)
(B) Indian Institute of Banking & Finance (IIBF)
(C) Indian Bank Association
(D) Registrar of Companies
(E) None of these
Ans : (E)

9. We very frequently read about Europe's Sovereign—debt crisis these day. Which of the following statement/s is/are true about the same ?
1. In early 2010 the Euro crisis developed in some countries like Greece, Spain and Portugal.
2. This created a credit default swap between the countries of the European Union.
3. SAARC countries have offered some assistance to some of severely affected countries like Portugal, Spain & Greece.
(A) Only 1
(B) Only 2
(C) Only 1 and 2
(D) All 1, 2 and 3
(E) None of these
Ans : (A)

10. As we all know the RBI has raised the Cash Reserve Ratio (CRR) by 25 bps. in April 2010. What action banks will have to take to implement the same ?
1. They will have to deposit some more money with the RBI as a reserved money.
2. Banks will be required to give some more loan to projects of the priority sector.
3. Banks will be required to give loan equivalent to the CRR to the Govt. of India for its day to day expenditure as and when required.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (A)

11. As per estimates given by the RBI the Economic Growth during the year 2010-11 will be at which of the following levels ?
(A) 6.5%
(B) 7%
(C) 7.5%
(D) 8%
(E) None of these
Ans : (D)

12. Which of the following is/are correct about the RBI's credit policy announced in April 2010 ?
1. Repo rate raised by 25 bps.
2. A new reporting platform was introduced for secondary market transactions in Certificate of Deposits (CDs) and Commercial Papers (CPs).
3. Core Investment Companies (CICs) having an asset size of Rs. 100 crore are required to register also with the RBI.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (A)

13. As per the announcement made by the RBI some Stock Exchanges in India are allowed to introduce Plain Vanilla Currency Options. The term Plain Vanilla Currency Options is associated with which of the following activities / operations ?
(A) Dollar – Rupee Exchange Rate
(B) Floating of Commercial Papers
(C) Launch of new mutual funds
(D) Deciding the opening price of a share on a particular business day
(E) None of these
Ans : (A)

14. Which of the following is not a term related to banking/finance operations ?
(A) Provision Coverage Ratio
(B) Securitization
(C) Consolidation
(D) Commodification
(E) Derivatives
Ans : (C)

15. The process of "Artificial Application of Water to the soil usually for assisting in growing crops", is technically known as—
(A) water harvesting
(B) irrigation
(C) water recharging
(D) percolation
(E) None of these
Ans : (B)

16. As per the news published in major news papers/journals henceforth the Credit Card holders will be able to access their credit card information though automated interactive voice response system over the phone instead of speaking to the staff. This decision ofthe banks/credit card companies will provide—
1. an additional hurdle to the customers as people feel comfortable in talking to the staff instead of talking to a machine.
2. an additional security to the customers as this does not allow any staff to handle any transaction directly.
3. some comfort to the banks as they will be able to reduce their staff strength.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) Only 1 and 3
Ans : (B)

17. The 34th National Game which were postponed several times are scheduled to be held in which of the following states ?
(A) Gujarat
(B) Kerala
(C) Tamil Nadu
(D) Uttar Pradesh
(E) Jharkhand
Ans : (E)

18. Waste Water generates which of the following gases which is more powerful and dangerous than CO2 ?
(A) Nitrogen
(B) Sulphur di-oxide
(C) Hydrogen
(D) Methane
(E) None of these
Ans : (D)

19. Which of the following days was observed as World Water Day 2010 ?
(A) 20th June
(B) 22nd July
(C) 22nd March
(D) 20th May
(E) None of these
Ans : (C)

20. Late Vinda Karandikar who died a few months back was a famous—
(A) Author
(B) Cine-Actor
(C) Sportsman
(D) Classical Singer
(E) Social Worker
Ans : (A)

21. As per the reports published recently the Govt. of India has decided to create a separate agency/body scrutinize all Foreign Direct Investments (FDIs) officially. Up till now the security screening was
being done by the—
(A) Ministry of Foreign Affairs Govt. of India
(B) Reserve Bank of India
(C) Securities & Exchange Board of India
(D) Ministry of Finance, Govt. of India
(E) Ministry of Home Affairs Govt. of India
Ans : (E)

22. As per the news reports in various news papers the USA has outlined some major policy goals to prevent the danger of nuclear terrorism. Which of the following is/are included in those policy goals ?
1. Convene a nuclear security summit within a year's time under the leadership of the USA.
2. A new agreement/pact should be introduced in place of present Nuclear Non Proliferation Treaty (NPT).
3. Call for a global effort to secure all nuclear weapons at all vulnerable sites all over the world.
(A) Only 1
(B) Only 2
(C) Only 1 and 3
(D) Only 2 and 3
(E) All 1, 2 and 3
Ans : (E)

23. 'Indira Gandhi Canal' which is around 450 km long provide irrigation facility mainly to which of the following states ?
(A) Punjab
(B) Haryana
(C) Madhya Pradesh
(D) Gujarat
(E) Rajasthan
Ans : (E)

24. Former caption of the Indian Cricket team, Ajit Wadekar is conferred which of the following awards for the year 2010 ?
(A) Bharat Ratna
(B) Khel Shri Award
(C) Dronacharya Award
(D) Rajiv Gandhi Khel Ratna Award
(E) None of these
Ans : (E)

25. Who amongst the following is the director of the popular Hindi film "Oye Lucky ! Lucky Oye" ?
(A) Mani Ratnam
(B) David Dhavan
(C) Dibankar Banerjee
(D) R. Balakrishnan
(E) None of these
Ans : (C)

26. India recently signed an agreement to import Liquified Natural Gas (LNG) from a country which is the largest LNG producer and supplier of the world. Which is that country ?
(A) Kuwait
(B) Qatar
(C) Iran
(D) Saudi Arabia
(E) None of these
Ans : (B)

27. As a measure to help countries hit by global financial meltdown the RBI has purchased notes worth US $ 10 billion in terms of Special Drawing Rights from a World Organisation/agency. Which is this agency/organization ?
(A) Federal Reserve of U.S.A.
(B) Asian Development Bank
(C) World Bank
(D) International Monetary Fund
(E) None of these
Ans : (D)

28. Which of the following is not a public sector undertaking under the Ministry of Defence, Govt. of India ?
(A) Mazagaon Dock Ltd.
(B) Garden Reach Shipbuilders and Engineers Ltd.
(C) Bharat Heavy Electricals Ltd.
(D) Hindustan Aeronautics Ltd.
(E) Bharat Earth Movers Ltd.
Ans : (C)

29. Which of the following states won the senior National Women's Football Tournament 2010 ?
(A) Manipur
(B) Assam
(C) Tamil Nadu
(D) Kerala
(E) Delhi
Ans : (A)

30. Which of the following is not a missile developed by the Defence Research and Development Organisation (DRDO) ?
(A) Shaurya
(B) Pinaka
(C) Brahmos
(D) Agni
(E) Nag
Ans : (A)

31. Which of the following declarations/treaties was adopted by the BRIC countries recently to promote Global Food Security ?
(A) Moscow Declaration
(B) Doha Treaty
(C) Delhi Declaration
(D) Kabul Treaty
(E) None of these
Ans : (A)

32. Which of the following statements represent(s) the main objective(s) of the revised National Health Policy–2002 of the Govt. of India ?
1. Increase Public expenditure from 0•9 per cent to 2 per cent of the GDP.
2. Setting up of Medical Grants Commission for funding new Govt. Medical & Dental colleges.
3. Mandatory two years rural posting before awarding the degree to Medical Graduates.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 3
(E) All 1, 2 and 3
Ans : (E)

33. Which of the following metals is used for genration of nuclear Energy by most of the Nuclear Power Plants ?
(A) Zinc
(B) Platinum
(C) Uranium
(D) Nickel
(E) None of these
Ans : (C)


34. Indus Water Treaty is a pact on sharing of river water between India and—
(A) Bangladesh
(B) Pakistan
(C) Nepal
(D) Afghanistan
(E) Myanmar
Ans : (B)

35. The Union Cabinet recently cleared Prohibition of unfair Practices in Technical Medical Educational Institutes and Universities Bill 2010. As per the bill which of the following will now be treated as a cognizable offence ?
(A) Accepting capitation fee from the students
(B) Running a private college
(C) Not allowing students to change their course in between
(D) Running a college without proper facilities
(E) None of these
Ans : (A)

36. Which of the following is/are considered a Renewable Source of Energy ?
1. Wind Energy
2. Solar Energy
3. Nuclear Energy
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (D)

37. Which of the following countries is not amongst the top ten in industrial production in the world during 2010 ?
(A) India
(B) Iran
(C) China
(D) France
(E) U.S.A.
Ans : (B)

38. Commonwealth Games 2010 are being organized in which of the following countries ?
(A) Australia
(B) South Africa
(C) Canada
(D) New Zealand
(E) India
Ans : (E)

39. Which of the following is not a banking related term ?
(A) Radiation
(B) Outstanding amount
(C) Benchmark Prime Lending Rate
(D) Explicit Guarantee
(E) Creditor
Ans : (A)

40. Insurance service provided by various banks is commonly known as—
(A) Investment Banking
(B) Portfolio Management
(C) Merchant Banking
(D) Bancassurance
(E) Micro Finance
Ans : (D)

41. Who amongst the following has recently taken over as the Chairman of the 19th Law Commission ?
(A) Mr. A. R. Lakshmanan
(B) Mr. P. V. Reddy
(C) Mr. Yashwant Sinha
(D) Mr. Ranjan Bharti Mittal
(E) None of these
Ans : (B)

42. Moortidevi Award is given for excellence in the field of—
(A) Classical dance
(B) Literature
(C) Classical music
(D) Cinematography
(E) Social service
Ans : (B)

43. Which of the following terms is used in the game of Cricket ?
(A) Love
(B) Tee
(C) Penalty stroke
(D) No Ball
(E) None of these
Ans : (D)

44. Which of the following awards is given by an agency of the United Nations Organization ?
(A) Normon Borloug Award
(B) Kalinga Prize
(C) Ramon Magsaysay Award
(D) Pulitzer Prize
(E) None of these
Ans : (B)

45. Which of the following countries won the Hockey World Cup 2010 ?
(A) Spain
(B) England
(C) India
(D) Australia
(E) None of these
Ans : (D)

46. Who amongst the following is the author of the English novel 'solo', which was given Common Wealth Writers' Prize 2010 ?
(A) Aamer Hussain
(B) Jonathan Tel
(C) Rana Dasgupta
(D) John Torrence Tate
(E) None of these
Ans : (C)

47. Mr. Surjit Patar who was awarded Saraswati Samman recently is a well known poet of—
(A) Hindi
(B) English
(C) Punjabi
(D) Urdu
(E) Bengali
Ans : (C)

48. Which of the following is the book written by Kiran Desai ?
(A) Higher than Everest
(B) A Passage to England
(C) Affluent Society
(D) All my Yester Years
(E) The Inheritance of Loss
Ans : (E)

49. Which of the following Trophies/cups is associated with the game of Hockey ?
(A) Durand Cup
(B) Santosh Trophy
(C) Rangaswami Cup
(D) Ranji Trophy
(E) K. D. Singh Babu Trophy
Ans : (C)

50. Sandra Bullock who was awarded Oscar recently is a famous—
(A) Actress
(B) Director
(C) Music Composer
(D) Screen play writer
(E) None of these
Ans : (A)

IBPS GENERAL AWARENESS SOLVED QUESTIONS

1. Which of the following statements about CHOGM 2011 is/are true?
1) The Commonwealth Heads of Government Meeting 2011, commonly known as CHOGM 2011, was held in Perth, Australia in October 2011.
2) The 22nd Meeting of the Heads of Government of the Commonwealth of Nations was chaired by Julia Gillard, the Prime Minister of Australia.
3) Hamid Ansari, the Vice President, represented India at the Summit.
4) Canadian Prime Minister Stephen Harper had threatened to boycott the 2013 CHOGM, to be held in Sri Lanka, if allegations of human rights abuses against the country's Tamil minority were not investigated.
5) All the statements are correct.

2. Muammar Qadhafi was killed in October 2011 in his hometown Sirte. He was the former leader of which of the following countries?
1) Tunisia
2) Egypt
3) Syria
4) Libya
5) Yemen

3. The Election Commission has disqualified Umlesh Yadav, an MLA from Uttar Pradesh, from contesting again for three years for suppressing expenditure (the amount spent for issuing the advertisements) in her election accounts. She is the first political victim of the paid news phenomenon. She was elected from which of the following political parties?
1) Rashtriya Janata Dal
2) Samajwadi Party
3) Rashtriya Parivartan Dal
4) Bharatiya Janata Party
5) Bahujan Samaj Party

4. Alain Juppe visited India in October 2011. He is the Minister for Foreign Affairs of which of the following countries?
1) Germany
2) Italy
3) United Kingdom
4) France
5) Spain

5. M.K.Mani has been honoured with the 40th Dhanvantari Award. In which of the following fields is this prestigious award given annually?
1) Print Journalism
2) Cinema
3) Architecture
4) Medical Science
 5) Literature

6. The South India's first metro rail service was started in which of the following cities in October 2011?
1) Chennai
2) Bangalore
3) Hyderabad
4) Cochin
5) None of these

7. Who is the Chairman of the Prime Minister's Economic Advisory Council (PMEAC)?
1) Bimal Jalan
2) Suresh Tendulkar
3) C.Rangarajan
4) Y.V.Reddy
5) Montek Singh Ahluwalia

8. Shakti-2011 is a joint army exercise between India and which of the following countries? (It was conducted in Uttarakhand in October 2011)
1) Sri Lanka
2) France
3) USA
4) China
5) Philippines

9. Who won the National Chess title in Aurangabad in October 2011?
1) Abhijeet Gupta
2) Deepan Chakkravarthy
3) S.P.Sethuraman
4) M.R.Venkatesh
5) Vidit Gujarathi

10. Who has been honoured with the Presidential Citizens Medal by U.S. President Barack Obama for her courage in overcoming and speaking out against domestic abuse in the Indian-American community?
1) Kavya Lahiri
2) Vijaya Emani
3) Kalpana Sen
4) Anuradha Sen
5) None of these

11. Which English cricketer is the author of the book 'The Breaks are off-My Autobiography'?
1) Kevin Pietersen
2) Graeme Swann
3) Alastair Cook
4) Ian Bell
5) Andrew Strauss

12. Who made history by winning the inaugural Formula One Indian Grand Prix at the Buddh International Circuit in Greater Noida in October 2011?
1) Sebastian Vettel
2) Jenson Button
3) Fernando Alonso
4) Mark Webber
5) Michael Schumacher

13. Who was re-appointed the Commonwealth Secretary- General for four more years in October 2011?
1) Don McKinnon
2) Arnold Smith
3) Kamalesh Sharma
4) Shridath Ramphal
5) None

14. Who received "The Hindu Lite-rary Prize for Best Fiction 2011" for his/her debut novel "The Sly Company of People Who Care" in October 2011?
1) N.S.Madhavan
2) Rahul Bhattacharya
3) Amitav Ghosh
4) Anuradha Roy
5) None

15. Who is the author of the book 'The TCS Story…and Beyond'?
1) Ratan Tata
2) N.Chandrasekaran
3) S.Ramadorai
4) N.R.Narayana Murty
5) Nandan Nilekani

16. The National Development Council (NDC) meeting was held in New Delhi recently. Who is the Chairman of the NDC?
1) Manmohan Singh
2) P.Chidambaram
3) Pranab Mukherjee
4) Sonia Gandhi
5) Montek Singh Ahluwalia

17. Jigme Khesar Namgyel Wangchuck visited India recently. He is the king of which of the following countries?
1) Nepal
2) Mauritius
3) Thailand
4) Bhutan
5) None of these

18. New Zealand won the Rugby World Cup in October 2011 after defeating which of the following countries in the final held in Auckland, New Zealand?
1) USA
2) UK
3) Canada
4) Australia
5) France

19. Ellen Johnson Sirleaf is one of the three recipients of the Nobel Peace Prize for 2011. She is the President of which of the following countries?
1) Yemen
2) Liberia
3) Rwanda
4) Sudan
5) Kenya

20. Who is considered as the father of the white revolution in India?
1) M.S.Swaminathan
2) H.G. Khorana
3) U.R.Rao
4) Verghese Kurien
5) None

21. Which of the following terms is used in the game of hockey?
1) Deuce
2) Penalty Corner
3) LBW
4) No Ball
5) Back Hand

22. Which city hosted the 5th IBSA Summit in October 2011?
1) Cape Town
2) Durban
3) Pretoria
4) Johannesburg
5) Bloemfontein

23. Who among the following leaders did not attend the IBSA Summit in October 2011?
1) Dilma Rousseff
2) Jacob Zuma
3) Manmohan Singh
4) Dmitri Medvedev
5) None of these

24. Who among as following has been elected the President of Kyrgyzstan? (He is the present Prime Minister)
1) Adakhan Madumarov
2) Kamchibek Tashiyev
3) Almazbek Atambayev
4) Nursultan Nazarbayev
5) None of these

25. Who was presented the Indira Gandhi Award for National Integration 2010 for his yeoman service in promoting and preserving the spirit of national integration on October 31, 2011, the death anniversary of Indira Gandhi?
1) Vijay Darda
2) Mohan Dharia
3) Jaipal Reddy
4) Pranab Mukherjee
5) A.K.Antony

26. Who headed the Committee on direct transfer of subsidies on Kerosene, LPG and Fertilizers to the beneficiaries?
1) Manmohan Singh
2) Pranab Mukherjee
3) C.Rangarajan
4) Nandan Nilekani
5) Montek Singh Ahluwalia

27. Which of the following programmes launched by the Government of India aims at enhancing the Livelihood security of the people in rural areas by guaranteeing hundred days of employment in a financial year to a rural household?
1) JNNURM
2) ASHA
3) Kutir Jyoyhi
4) Bharat Nirman
5) MGNREGS

28. Which of the following is the period of the first Five Year Plan in India?
1) 1950-55
2) 1947-52
3) 1951-56
4) 1948-53
5) None of these

29. What is the name of the scheme that was launched by the Government of India for adolescent girls in November 2010?
1) ASHA
2) Swabhiman
3) Swawalamban
4) SABALA
5) Aadhar

30. PIIGS is an acronym for nations of which of the following continents?
1) Asia
2) Africa
3) Europe
4)South America
5) North America

31. Who among the following has never worked as RBI Governor?
1) C.Rangarajan
2) Bimal Jalan
3) Manmohan Singh
4) L.K.Jha
5) Yashwant Sinha

32. Which bank has taken over the Centurion Bank of Punjab?
1) ICICI Bank
2) HDFC Bank
3) IDBI Bank
4) AXIS Bank
5) OBC

33. Which country is considered as the pioneer of Micro Finance?
1) India
 2) Pakistan
3) Bangladesh
4) Sri Lanka
5) China

Answers
1) 5 2) 4 3) 3 4) 4 5) 4 6) 2 7) 3 8) 2 9) 1 10) 2 11) 2 12) 1 13) 3 14) 2 15) 3 16) 1 17) 4 18) 5 19) 2 20) 4 21) 2 22) 3 23) 4 24) 3 25) 2 26) 4 27) 5 28) 3 29) 4 30) 3 31) 5 32) 2 33) 3

IBPS GENERAL AWARENESS PRACTICE QUESTIONS

 

1. Which of the following teams won this season’s Indian Premier League (IPL) cricket cup?

a) Royal Challengers Bengalore          

b) Mumbai Indians

c) Kolkata Knight Riders        

d) Deccan Chargers    

e) Chennai Super Kings 

 

2. In the run-up to the free trade agreement between India and the European Union (EU), which of the following subjects has the EU taken up with the World Trade Organisation (WTO) pressing for its inclusion much to India’s discomfort?

a) Farm goods                         

b) Defence articles      

c) Intellectual Property Rights

d) Visa norms              

e) Industrial goods 

 

3. Which of the following cities has been declared as the costliest city in the world?

a) Kobe           

b) Paris            

c) Zurich          

d) Oslo                        

e) Tokyo 

 

4. What is the Minimum Support Price (MSP) per quintal fixed by the Centre for wheat for the season 2010-11?

 a) Rs. 1,000        

b) Rs.1,100        

c) Rs.1,200         

d) Rs.1,300         

e) Rs.1,250 

5.Who is to take over as non-executive chairman of India’s second larges IT company, Infosys, when the incumbent chairman NR Narayana Murthy retires in August this year?

 a) KV Kamath                        

b) Amit Mitra 

c) Renuka Ramnath    

d) Samidha Sharma

e) Vinita Bali 

 

6 In which of the following countries has Tata Motors launched its Nano cars, touted to be the cheapest car of the world, for the first time outside India?

 A) Sri Lanka   

B) Nepal          

C) Malaysia     

D) Indonesia

a) Only (B)                  

b) Only (A) Indonesia             

c) Only (C)

d) Only (A), (B) and (D)

e) None of these 

7. Which f the following business ownership structure companies has been given green signal by the stock market regulator, SEBI, to get membership of stock exchanges and make brokers?

a) Sole proprietorship companies        

b) Limited liability companies

c) Non-profit organizations                 

d) Cooperative companies

e) None of these 

8.Which of the following teams has won the Santosh Trophy football tournament?

a) Manipur       

b) Delhi           

c) Haryana       

d) West Bengal                      

e) Madhya Pradesh 

 

9.With which of the trading partners do Indian farm goods face market access problems on the grounds of arbitrary SPS (Sanitary and Phyto-Sanitary) standards and CCC (chemical residues)?

a) US               

b) ASEAN      

c) SAARC      

d) EU              

e) Japan 

 

10.Indian Railways is to construct the longest tunnel (11km long) on its network in the under-construction railway segments of

a) Indo-Burma rail project                  

b) West Coast Railways of India

c) Katra-Qazigund Pir Panjal Tunnel 

d) Arunachal railway project

e) Gangtok - Siliguri railway project 

 

11. There has been stalemate in the drafting committee of Lokpal Bill between the civil activists and political leader over the contents of he Bill. Which of the following are the major bones of contention between the two sides?

 I. Inclusion of the office of the Prime Minister under anti-corruption watchdog

II. Bringing higher judiciary under the purview of Lokpal

 III. Bringing the office of the Chief Ministers under Lokpal.

IV. In camera monitoring of the activities of MPs in Parliament.

a) Only I and II                       

b) Only IV      

c) Only I, II and IV    

d) All the above

e) None of these 

 

12. Which of the following teams has recently won the Champions Leagues final at Wembley in London?

 a) Manchester United             

b) Barcelona    

c) Real Madrid                        

d) AC Milan

e) Chelsea FC 

 

13.Which of the following countries has recently decided to phase out all it nuclear power plants by 2022?

  a) Japan           

b) Italy                        

c) Ukraine       

d) Germany     

e) Spain 

 

14.Who has been honoured with the prestigious Jawaharlal Nehru Award for International Understanding for 2009?

a) Angela Merkel                    

b) Hillary Clinton        

c) Aung San Suu Kyi

d) Lula da Silva                                  

e) Sheikh Hasina 

 

15.G-4 is an alliance of four countries for the purpose of supporting each other’s bid for permanent seat in the United Nations Security Council. Apart from India, which are the other three countries constitution G4?

a) Brazil, Germany and Japan                         

b) Brazil, South Africa and Japan

c) Mexico, Brazil and South Africa    

d) Japan, Brazil and Mexico

e) None of these 

 

16.In which of the following international universities has a chair been instituted in the memory of India’s pioneering development economist, Sanjay Lall?

a) Cambridge University         

b) Stanford University            

c) Oxford University

d) Moscow University                        

e) San Carlos University 

 

17.Name the new non-linked health insurance plan of the Life Insurance Corporation (LIC) of India which offers comprehensive hospitalization benefits for the whole family and parents-in-law of the principal insured?

a) Rishtey        

b) Jeevan Sathi            

c) Anmol Jeevan         

d) Health Plus

e) Jeevan Arogya 

 

18.Who has been nominated for the CK Naidu Lifetime Achievement award?

a) Lala Amarnath                    

b) Salim Durrani          

c) Syed Mushtaq Ali

d) KN Prabhu                                     

e) Syed Kirmani 

 

19. British - born Sierra Leonean novelist Aminatta Forma won the 2011 Commonwealth Writers’ Prize for which of the following novels?

a) The Devil that Danced on the Water                      

b) Ancestor Stones

c) The Memory of Love 

d) Ancestor  Love                                          

e) All for Love 

 

20. Which of the following rules has/have not been scrapped by the insurance regulator IRDA?

 a) Commission on the sale of ULIP

b) Profitability clause of three years for floating initial public offer (IPOs)

c) Traditional insurance plans have to make 50% investment in government bonds

d) Only a  and b                      

e) Only a and c

 

21.Small Industries Development Bank of India (SIDBI) has been operating under SWS. What is the full form of SWS?

a) Small Welfare Scheme                    

b) Single Window Scheme

c) Small Window Service                   

d) Single Window Service

e) None of these 

 

22.  Which of the following is the target fixed by the 11^th five-year plan pertaining to increase literacy, level by the 2012 The level should be increased to

a) 50%                         

b) 60%             

c) 70%             

d) 85%                        

e) 90%

 

23.‘Blue Revolution’ is related to

a) Space Research                   

b) Fisheries      

c) Drinking Water       

d) Poultry

e) Milk     

                               

24.Normally two types of factors are responsible for industrial sickness - external and internal. Which of the following is not an internal factor of industrial sickness?

a) Shortage of power              

b) Mismanagement      

c) Diversion of funds

d) Excessive overheads           

e) Overestimation of demand 

 

25.Which of the following is an employment - generating scheme?

a) Ganga Kalyan Yojana                                 

b) IRDA         

c) Swarnjayanti Shahri Rozgar Yojana                       

d) Mid-Day Meal Scheme

e) All of the above. 

 

26.Ethanol - mixed petrol is being sold in various states wef January 1, 2003. The percentage of ethanol in petrol is

a) 10%                         

b) 7%               

c) 6%               

d) 5.5%           

e) 5% 

 

27. Which of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India?

a) Services - Industry - Agriculture    

b) Services - Agriculture - Industry

c) Industry - Services - Agriculture    

d) Industry - Agriculture - Services

e) None of these 

 

28.Which of the following agencies recently laid down guidelines for foreign companies who wish to raise money from the Indian capital markets?

a) RBI                         

b) IRDA          

c) Registrar of companies       

d) SEBI

e) None of these 

 

29. Consider the following statements:

A) The repo rate is the rate at which other banks borrow money from the Reserve Bank of India.

B) A value of one for Gini co-efficient in a country implies that there is perfectly equal income for everyone in its population.

 C) Higher interest rates can make EMIs costly. Which of the statements given above is/are correct?

a) Only A        

b) Only A and C        

c) Only B and C          

d) All the above

e) None of these 

 

30. These days, more and more banks in Indian are setting up their ATMs and discouraging people to visit their branches for transaction. Which of the following is/are the limitations of the ATMs which force people to go to branch for transactions?

A) Lack of human interface                

B) Communication gap

C) Limited cash - dispensing ability  

a) Only A                    

b) Only B       

c) Only C        

d) Both A and B

e) A, B, and C All 

 

31.Which of the following countries has the largest stock of foreign exchange reserves in the world?

a) USA                        

b) China          

c) Japan           

d) India                       

e) None of these 

 

32.Which of the following taxes is exclusively and totally assigned to the state government by the Constitutions?

 a) Estate duty              

b) Sales Tax     

c) Taxes on Railway fares and freights

 d) Corporation tax      

e) Entertainment 

 

33. The tax on import and export is known as

a) Income tax 

b) Trade tax     

c) Customs duty          

d) Commercial tax

e) None of the above 

 

34.Which of the following is not an objective of fiscal policy of Indian government?

a) Full employment     

b) Price stability          

c) Regulation of inter-state trade

d) Equitable distribution of wealth and income         

e) None of these 

 

35. In India, national income is estimated by

a) Planning Commission         

b) Central Statistical Organisation

c) Indian Statistical Institute 

d) National Sample Survey Organisation

e) None of these 

 

36.Bharat Nirman Scheme of the UPA government does not include

a) Rural water supply project 

b) Irrigation  benefit programme        

c) Rural electrification                        

d) Sarva Shiksha Abhiyan      

e) None of these 

 

37. Invisible export means export of

a) Services                               

b) Prohibited goods    

c) Unrecorded goods

d) Goods through smuggling 

e) Illegal export through a third county 

 

38.A labour-intensive industry is one that

 a) requires hard manual labour                       

b) pays adequate wages to the labour

c) employs more hands                                   

d) provides facilities to labour

e) None of these 

 

39.In the law of demand, the statement ‘other things remain constant’ means.

 a) income of consumer should not change     

b) prices of other goods should not change   

c) taste of consumer should not change                      

d) All the above

e) None of these 

 

40.A firm is in equilibrium when its

a) Marginal cost equals the marginal revenue             

b) Total cost is minimum

c) Total revenue is maximum                         

d) Average revenue and marginal revenue are equal              

e) None of these 

 

41.Bhagyam oil fields which are being explored by Carins India, is located in

a) Assam         

b) Gujarat        

c) Rajasthan    

d) Karnataka  

e) None of the above

 

42.In which of the following regions of India has the Archaeological Survey of India (ASI) found evidences of hearths built by cutting natural mountains belonging to periods 3,000 to 4,000 years ago, for the first time?

a) Garo Hills, Meghalaya        

b) Mishmi Hills, Arunachal Pradesh

c) Western Ghats                    

d) Ladakh Valley                   

e) Satpura Range, Madhya Pradesh 

 

43.Which of the following famous tabloids of Britain recently ceased its operations after its 168year - long history of scoops and scandals?

a) The Sun       

b) Daily Mirror            

c) The Morning Star    

d) News of the World

 e) None of these

 

44.Which of the following mobile operators has launched its mobile newspaper, Newswrap, for its customers in Hyderabad?

a) Airtel           

b) Reliance      

c) Idea                        

d) Vodafone   

e) Aircel 

 

45.Which of the following countries has taken over the rotational presidency of the European Union (EU) on July 1, 2011?

a) Denmark                 

b) Britain         

c) Germany     

d) Poland

e) Netherlands 

 

46.Which of the following is the youngest country of the world that has joined the community of nations on July 9, 2011?

a) South Sudan           

b) Maldova      

c) Estonia        

d) East Timor

e) None of these 

 

47. Name the Indian woman athlete who has clinched gold medal in high jump in the Asian Athletic Championship in Kobe, Japan.

a) Shiny Wilson                       

b) Mayookha Johny    

c) Soma Biswas

d) Neelam Jaswant Singh       

e) None of these 

 

48.As on June 30, 2011, which of the following rates stipulated by the Reserve Bank of India (RBI) is the lowest?

a) Bank Rate               

b) Repo Rate               

c) Savings Bank Rate

d) Cash Reserve Ratio            

e) Statutory Liquidity Ratio

 

49.Consider the following statements about the contentious issues in the upcoming India-EU free trade agreement.

A) Intellectual property should be included in the investment chapter

B) Government procurement policy in agriculture should be kept out of the purview of the agreement.

C) Greater mutual market access for products such as automobiles, liquor, textile and liquor.

 Which of the above statements is/are true?

a) Only A        

b) Only A and B                    

c) Only A and C         

d) All the above

e) None of these 

 

50.Which of the following states has unveiled “Vision 2025” containing clear-cut policies for promoting investments in infrastructure such as power, ports, and ship building?

a) Andhra Pradesh                  

b) Tamil Nadu                        

c) Gujarat

 d) Karnataka                          

e) None of these 

 

ANSWERS:

1.e       2.c      3.e       4.b      5.a      6.d      7.b      8.d      9.b      10.c

11.c    12.b    13.d    14.a    15.a    16.c    17.e     18.d    19.c    20.d

21.d    22.d    23.b    24.a    25.c    26.e     27.a    28.d    29.d    30.c

31.b    32.b    33.c    34.c    35.b    36.d    37.a    38.c    39.d    40.a

41.c    42.d    43.d    44.d    45.d    46.a    47.b    48.c    49.d    50.b

IBPS GENERAL AWARENESS MCQs

1. Which among the following is not the nationalized bank?
1) Andhra Bank
 2) Syndicate bank
3) Axis bank
4) Central Bank of India
5) Oriental Bank of Commerce

2. Banks cannot accept ...........
1) Cash
2) Postal Stamps
3) Drafts
4) Bill of exchange
5) pay order

3. Cheque facility is not available in ...........?
1) Savings Account
2) Current Account
3) Recurring Account
4) Savings and Current Account
5) All of above

4. The Demand Draft can be issued to ...........?
1) Farmer
2) Student
3) Government employee
4) Business man
5) All of above

5. Core banking means ...........?
1) Connectivity between all branches and RBI
2) Connectivity between all branches and the branches of other bank
3) Connectivity of branches, ATM and online systems of all branches
4) Connectivity between all RRB's and RBI
5) None

6. Which of the following rate usually not declared by RBI?
1) SLR
2) CRR
3) Base rate
4) Repo Rate
5) Reverse repo Rate

7. In private sector bank, the government may have the stake up to ........... percent?
1) 50
2) 51
3) 100
4) 49
5) 0

8. In public sector bank, the government stake must be least ...........percent?
1) 50
2) 100
3) 90
4) 51
5)1

9. NEFT rules are given. Pick the wrong one?
1) NEFT means National Electronic Fund Transfer
2) Up to 2 lakhs the amount can be transferred
3) Both in Savings and Current Account the funds can be transferred
4) The minimum charge on this type of transfer is Rs.1000
5) Many private and Public Sector banks offer this facility these days

10. RTGS rules are given. Pick the wrong one?
1) RTGS means Real Time Gross Settlement
2) Above 2 lakhs the funds can be transferred
3) RTGS facility not available in current account
4) The charges of RTGS to be paid by the customer
5) All of above

11 All savings bank accounts carry nominee name. A nominee cannot be ...........?
1) Friend
2) Mother
3) Father
4) Son
5) Daughter

12. On 19 October 2011, Pranab Mukarjee said the Union Government inject the funds in to public sector banks to maintain Tier Capital of ...........percent?
1) 5
2) 10
3) 6
4) 7
5) 8

13. The negotiable instrument is ...........?
1) Cheque
2) Demand draft
3) Bill of Exchange
4) Treasury Bills
5) All of above

14. Negotialble instruments rules and regulations mentioned by ...........?
1) Negotiable cheque Act 1901
2) Negotiable instruments Act 1901
3) Negotiable instruments Act 1818
4) Negotiable instruments Act 1881
5) None

15. Usually there are three parties in the case of Cheque. The drawer is ...........?
1) One who writes cheque
2) One who receives cheque
3) One who mediates cheque
4) 1 & 3
5) None

16. In the cheques, the drawee is...........
1) One who writes cheque
2) One who mediates cheque
3) RBI
4) Bank
5) All of above

17. Drawing two or three lines on the left head of cheque is called ...........?
1) Nullity
2) Paid
3) Offering
4) Crossing
5) Nothing

18. Crossing means the bank should ...........?
1) Make the payment stop
2) Make the payment late
3) Make the payment to payee through account only
4) Pay the amount to anybody
5) None

19. The cheque bounce due to ...........?
1) If the correct date written
2) If the Sunday date written
3) If the public holiday date written
4) If the date is the 30th of any month
5) Post date written

20. Cheque bounce due to ...........?
1) More funds
2) Funds not excessive at least Rs.1000
3) Lack of funds
4) If the amount has paise denomination
5) In all above cases

21. Cheque bounce due to ...........?
1) If the cheque is given with signature
2) If the cheque issued to government employee
3) Alteration made without signature
4) If the cheque value is more than 50 lakhs
5) In all above cases

22. On 20th October 2011, State Bank of India declared it earned 3.5 NIM in the second quarter. NIM stands for ...........?
1) Net Interest Minimum
2) Not Interest Margin
3) Net Internal Margin
4) Net Interest Module
5) Net Interest Margin

23. ETF stands for ...........(In these days the people are buying GOLD ETF bonds)
1) Extra Trade Forum
2) Exchange Trade Finance
3) Eternal Trade Fund
4) Exchange Trade Forum
5) Exchange Traded Fund

24. Chairman of the National Advisory Committee on Accounting Standards is ...........?
1) D.Subba Rao
2) Y.V.Reddy
3) Y.H.Malegam
4) K.C.Chakravarthy
5) Montek Singh Ahluwalia

25. Which financial institute declared October month as Social Security Month?
1) SBI
2) Religare
3) LIC
4) India First
5) GIC

26. FAO conference on East Africa famine concluded in ...........?
1) Rome
2) Vienna
3) Newyork
4) Washington
5) Canberaa

27. UN AIDS ambassador ...........participated in International AIDS conference on 7 Oct 2011 at Moscow?
1) Preity Zinta
2) Sharmila Tagore
3) Leela Samson
4) Mamatha Sharma
5) Shantha Sinha

28. Two public sector enterprises applied for the status of Maharatna recently. They are ...........?
1) CIL,HCL
2) ONGC,SBI
3) IOC,NTPC
4) SAIL,BEL
5) BHEL,GAIL

29. H- 1 (2011-2012)tax collection increased by ........... percent leading the collection to Rs.4,25,712 crores?
1) 14.5
2) 20.6
3) 22.1
4)18.9
5) 25.6

30. The global economic growth in 2011 will be nearer to ........... percent only, compare to 4 percent in 2010?
1) Eight
2) Ten
3) Six
4) Seven
5) Three

31. ...........has introduced the nation's first petrol pump with self service refuelling facility in New Delhi?
1) ONGC
2) HP
3) IOC
4) BP
 5) None

32. The second highest test Century (35) maker is Dravid. He is the cricketer from ...........?
1) Andhra Pradesh
2) Mumbai
3) Delhi
4) West Bengal
5) Karnataka

33. Baichiung Bhutia retired from international events. He is the former Indian ........... captain?
1) Volley ball
2) Foot Ball
3) Cricket
4) Kho Kho
5) Kabbaddi

34. The term gully used in ...........?
1) Foot ball
2) Volley ball
3) Hand ball
4) Hockey
 5) Cricket

35. The FIFA(Federation of International Football Association) world cup venues given. Pick the correct one?
1) 2010-South Africa
2) 2014-Brazil
3) 2018-Russia
4) 2022-Qatar
5) All of above

36. ...........released $ 1.5 billion aid to Libya on 27 August 2011?
1) USA
2) Russia
3) UNO
4) IBRD
5) IMF

37. Union government sanctioned Rs............crores for tracking cyclones in coastal states?
1) 1500
2) 2500
3) 2000
4) 1700
5) 900

38. Fast attack warship ........... commissioned in Indian Navy on 26 August 2011?
1) Kaurava
2) Pandava
3) Karna
4) Salya
5) None

39. The Prime Minister announced the free import of 61 items from Bangladesh. The currency of Bangladesh is...........?
1) Dollar
2) Rupee
3) Ngultrum
4) Pound
5) Taka

40. Among 28 states in India, 17 states have Lokayukta. The first Lokayukta established in 1970 is ...........
1) Odisha
2) Andhra Pradesh
3) Assom
4) Tamilnadu
5) Sikkim

41. The Lokayukta who inducted Yedurappa, the chief minister of Karnataka is ...........?
1) Justice Rey
2) Justice Kania
3) Justice Panduranga
4) Justice Sudha Misra
5) Justice Santosh Hegdey

42. The Lokayukta who resigned in Karnataka on the allegations of Land Scam?
1) Justice Nanavathi
2) Justice Bhagavathi
3) Justice Chandra Chud
4) Justice Mukarjee
5) Justice Sivaraj Patil

43. Recently the inventor of iPad died. He is ...........?
1) Edwin H. Armstrong
2) Charles Babbage
3) Steve Jobs
4) William Seward Burroughs
5) George Eastman

44. On 17th August 2011, ...........topped as most valuable firm crossing RIL ( Reliance Industries Limited) in market capitalization?
1) BHEL
2) ISRO
3) Bharati Cement
4) Coco-Cola
5) Coal India Limited

45. Top three destinations of Indian exports as per e-Bay site?
1) Eurpoe,USA and UK
2) USA,UK and Germany
3) USA, Indonesia and China
4) USA,UK and Europe
5) USA,UK and Australia

46. The export promotion scheme 'Focus: LAC' applies to ...........?
1) European Union
2) North America
3) South East Asia
4) Africa
5) South America

47. 100th International Labour Organization summit held in ...........on 13 June 2011?
1) Geneva
2) Paris
3) New York
4) Washington
5) Rome

48. National convention of Parliamentarians, Legislators, zilla parishad chairpersons and mayors on HIV/ AIDS held in...........on 4, 5 July 2011?
1) Mumbai
2) Hyderabad
3) Chennai
4) New Delhi
5) Pune

49. World Investors summit will be held in ..........
1) Hyderabad
2) New Delhi
3) Bengaluru
4) Chennai
5) Kolkata

ANSWERS:

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

BANKING & FINANCIAL TERMS

• Accrued interest: Interest due from issue date or from the last coupon payment date to the settlement date. Accrued interest on bonds must be added to their purchase price.
• Arbitrage: Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market.
• Ask Price: The lowest price at which a dealer is willing to sell a given security.
• Asset-Backed Securities (ABS): A type of security that is backed by a pool of bank loans, leases, and other assets. Most ABS are backed by auto loans and credit cards – these issues are very similar to mortgage-backed securities.
• At-the-money: The exercise price of a derivative that is closest to the market price of the underlying instrument.
• Basis Point: One hundredth of 1%. A measure normally used in the statement of interest rate e.g., a change from 5.75% to 5.81% is a change of 6 basis points.
• Bear Markets: Unfavorable markets associated with falling prices and investor pessimism.
• Bid-ask Spread: The difference between a dealer’s bid and ask price.
• Bid Price: The highest price offered by a dealer to purchase a given security.
• Blue Chips: Blue chips are unsurpassed in quality and have a long and stable record of earnings and dividends. They are issued by large and well-established firms that have impeccable financial credentials.
• Bond: Publicly traded long-term debt securities, issued by corporations and governments, whereby the issuer agrees to pay a fixed amount of interest over a specified period of time and to repay a fixed amount of principal at maturity.
• Book Value: The amount of stockholders’ equity in a firm equals the amount of the firm’s assets minus the firm’s liabilities and preferred stock. /p>
• Broker: Individuals licensed by stock exchanges to enable investors to buy and sell securities.
• Brokerage Fee: The commission charged by a broker.
• Bull Markets: Favorable markets associated with rising prices and investor optimism.
• Call Option: The right to buy the underlying securities at a specified exercise price on or before a specified expiration date.
• Callable Bonds: Bonds that give the issuer the right to redeem the bonds before their stated maturity.
• Capital Gain: The amount by which the proceeds from the sale of a capital asset exceed its original purchase price.
• Capital Markets: The market in which long-term securities such as stocks and bonds are bought and sold.
• Certificate of Deposits (CDs): Savings instrument in which funds must remain on deposit for a specified period, and premature withdrawals incur interest penalties.
• Closed-end (Mutual) Fund: A fund with a fixed number of shares issued, and all trading is done between investors in the open market. The share prices are determined by market prices instead of their net asset value.
• Collateral: A specific asset pledged against possible default on a bond. Mortgage bonds are backed by claims on property. Collateral trusts bonds are backed by claims on other securities. Equipment obligation bonds are backed by claims on equipment.
• Commercial Paper: Short-term and unsecured promissory notes issued by corporations with very high credit standings.
• Common Stock: Equity investment representing ownership in a corporation; each share represents a fractional ownership interest in the firm.
• Compound Interest: Interest paid not only on the initial deposit but also on any interest accumulated from one period to the next.
• Contract Note: A note which must accompany every security transaction which contains information such as the dealer’s name (whether he is acting as principal or agent) and the date of contract.
• Controlling Shareholder: Any person who is, or group of persons who together are, entitled to exercise or control the exercise of a certain amount of shares in a company at a level (which differs by jurisdiction) that triggers a mandatory general offer, or more of the voting power at general meetings of the issuer, or who is or are in a position to control the composition of a majority of the board of directors of the issuer.
• Convertible Bond: A bond with an option, allowing the bondholder to exchange the bond for a specified number of shares of common stock in the firm. A conversion price is the specified value of the shares for which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the conversion price.
• Corporate Bond: Long-term debt issued by private corporations.
• Coupon: The feature on a bond that defines the amount of annual interest income.
• Coupon Frequency: The number of coupon payments per year.
• Coupon Rate: The annual rate of interest on the bond’s face value that a bond’s issuer promises to pay the bondholder. It is the bond’s interest payment per dollar of par value.
• Covered Warrants: Derivative call warrants on shares which have been separately deposited by the issuer so that they are available for delivery upon exercise.
• Credit Rating: An assessment of the likelihood of an individual or business being able to meet its financial obligations. Credit ratings are provided by credit agencies or rating agencies to verify the financial strength of the issuer for investors.
• Currency Board: A monetary system in which the monetary base is fully backed by foreign reserves. Any changes in the size of the monetary base has to be fully matched by corresponding changes in the foreign reserves.
• Current Yield: A return measure that indicates the amount of current income a bond provides relative to its market price. It is shown as: Coupon Rate divided by Price multiplied by 100%.
• Custody of Securities: Registration of securities in the name of the person to whom a bank is accountable, or in the name of the bank’s nominee; plus deposition of securities in a designated account with the bank’s bankers or with any other institution providing custodial services.
• Default Risk: The possibility that a bond issuer will default ie, fail to repay principal and interest in a timely manner.
• Derivative Call (Put) Warrants: Warrants issued by a third party which grant the holder the right to buy (sell) the shares of a listed company at a specified price.
• Derivative Instrument: Financial instrument whose value depends on the value of another asset.
• Discount Bond: A bond selling below par, as interest in-lieu to the bondholders.
• Diversification: The inclusion of a number of different investment vehicles in a portfolio in order to increase returns or be exposed to less risk.
• Duration: A measure of bond price volatility, it captures both price and reinvestment risks to indicate how a bond will react to different interest rate environments.
• Earnings: The total profits of a company after taxation and interest.
• Earnings per Share (EPS): The amount of annual earnings available to common stockholders as stated on a per share basis.
• Earnings Yield: The ratio of earnings to price (E/P). The reciprocal is price earnings ratio (P/E).
• Equity: Ownership of the company in the form of shares of common stock.
• Equity Call Warrants: Warrants issued by a company which give the holder the right to acquire new shares in that company at a specified price and for a specified period of time.
• Ex-dividend (XD): A security which no longer carries the right to the most recently declared dividend or the period of time between the announcement of the dividend and the payment (usually two days before the record date). For transactions during the ex-dividend period, the seller will receive the dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the stock’s or unit trust’s name.
• Face Value/ Nominal Value: The value of a financial instrument as stated on the instrument. Interest is calculated on face/nominal value.
• Fixed-income Securities: Investment vehicles that offer a fixed periodic return.
• Fixed Rate Bonds: Bonds bearing fixed interest payments until maturity date.
• Floating Rate Bonds: Bonds bearing interest payments that are tied to current interest rates.
• Fundamental Analysis: Research to predict stock value that focuses on such determinants as earnings and dividends prospects, expectations for future interest rates and risk evaluation of the firm.
• Future Value: The amount to which a current deposit will grow over a period of time when it is placed in an account paying compound interest.
• Future Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will grow over a period of time when it is placed in an account paying compound interest.
• Futures Contract: A commitment to deliver a certain amount of some specified item at some specified date in the future.
• Hedge: A combination of two or more securities into a single investment position for the purpose of reducing or eliminating risk.
• Income: The amount of money an individual receives in a particular time period.
• Index Fund: A mutual fund that holds shares in proportion to their representation in a market index, such as the S&P 500.
• Initial Public Offering (IPO): An event where a company sells its shares to the public for the first time. The company can be referred to as an IPO for a period of time after the event.
• Inside Information: Non-public knowledge about a company possessed by its officers, major owners, or other individuals with privileged access to information.
• Insider Trading: The illegal use of non-public information about a company to make profitable securities transactions
• Intrinsic Value: The difference of the exercise price over the market price of the underlying asset.
• Investment: A vehicle for funds expected to increase its value and/or generate positive returns.
• Investment Adviser: A person who carries on a business which provides investment advice with respect to securities and is registered with the relevant regulator as an investment adviser.
• IPO price: The price of share set before being traded on the stock exchange. Once the company has gone Initial Public Offering, the stock price is determined by supply and demand.
• Junk Bond: High-risk securities that have received low ratings (i.e. Standard & Poor’s BBB rating or below; or Moody’s BBB rating or below) and as such, produce high yields, so long as they do not go into default.
• Leverage Ratio: Financial ratios that measure the amount of debt being used to support operations and the ability of the firm to service its debt.
• Libor: The London Interbank Offered Rate (or LIBOR) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). The LIBOR rate is published daily by the British Banker’s Association and will be slightly higher than the London Interbank Bid Rate (LIBID), the rate at which banks are prepared to accept deposits.
• Limit Order: An order to buy (sell) securities which specifies the highest (lowest) price at which the order is to be transacted.
• Limited Company: The passive investors in a partnership, who supply most of the capital and have liability limited to the amount of their capital contributions.
• Liquidity: The ability to convert an investment into cash quickly and with little or no loss in value.
• Listing: Quotation of the Initial Public Offering company’s shares on the stock exchange for public trading.
• Listing Date: The date on which Initial Public Offering stocks are first traded on the stock exchange by the public
• Margin Call: A notice to a client that it must provide money to satisfy a minimum margin requirement set by an Exchange or by a bank / broking firm.
• Market Capitalization: The product of the number of the company’s outstanding ordinary shares and the market price of each share.
• Market Maker: A dealer who maintains an inventory in one or more stocks and undertakes to make continuous two-sided quotes.
• Market Order: An order to buy or an order to sell securities which is to be executed at the prevailing market price.
• Money Market: Market in which short-term securities are bought and sold.
• Mutual Fund: A company that invests in and professionally manages a diversified portfolio of securities and sells shares of the portfolio to investors.
• Net Asset Value: The underlying value of a share of stock in a particular mutual fund; also used with preferred stock.
• Offer for Sale: An offer to the public by, or on behalf of, the holders of securities already in issue.
• Offer for Subscription: The offer of new securities to the public by the issuer or by someone on behalf of the issuer.
• Open-end (Mutual) Fund: There is no limit to the number of shares the fund can issue. The fund issues new shares of stock and fills the purchase order with those new shares. Investors buy their shares from, and sell them back to, the mutual fund itself. The share prices are determined by their net asset value.
• Open Offer: An offer to current holders of securities to subscribe for securities whether or not in proportion to their existing holdings.
• Option: A security that gives the holder the right to buy or sell a certain amount of an underlying financial asset at a specified price for a specified period of time.
• Oversubscribed: When an Initial Public Offering has more applications than actual shares available. Investors will often apply for more shares than required in anticipation of only receiving a fraction of the requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an indication of the public’s perception of the business potential of the IPO company.
• Par Bond: A bond selling at par (i.e. at its face value).
• Par Value: The face value of a security.
• Perpetual Bonds: Bonds which have no maturity date.
• Placing: Obtaining subscriptions for, or the sale of, primary market, where the new securities of issuing companies are initially sold.
• Portfolio: A collection of investment vehicles assembled to meet one or more investment goals.
• Preference Shares: A corporate security that pays a fixed dividend each period. It is senior to ordinary shares but junior to bonds in its claims on corporate income and assets in case of bankruptcy.
• Premium (Warrants): The difference of the market price of a warrant over its intrinsic value.
• Premium Bond: Bond selling above par.
• Present Value: The amount to which a future deposit will discount back to present when it is depreciated in an account paying compound interest.
• Present Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will discount back to present when it is depreciated in an account paying compound interest.
• Price/Earnings Ratio (P/E): The measure to determine how the market is pricing the company’s common stock. The price/earnings (P/E) ratio relates the company’s earnings per share (EPS) to the market price of its stock.
• Privatization: The sale of government-owned equity in nationalized industry or other commercial enterprises to private investors.
• Prospectus: A detailed report published by the Initial Public Offering company, which includes all terms and conditions, application procedures, IPO prices etc, for the IPO
• Put Option: The right to sell the underlying securities at a specified exercise price on of before a specified expiration date.
• Rate of Return: A percentage showing the amount of investment gain or loss against the initial investment.
• Real Interest Rate: The net interest rate over the inflation rate. The growth rate of purchasing power derived from an investment.
• Redemption Value: The value of a bond when redeemed.
• Reinvestment Value: The rate at which an investor assumes interest payments made on a bond which can be reinvested over the life of that security.
• Relative Strength Index (RSI): A stock’s price that changes over a period of time relative to that of a market index such as the Standard & Poor’s 500, usually measured on a scale from 1 to 100, 1 being the worst and 100 being the best.
• Repurchase Agreement: An arrangement in which a security is sold and later bought back at an agreed price and time.
• Resistance Level: A price at which sellers consistently outnumber buyers, preventing further price rises.
• Return: Amount of investment gain or loss.
• Rights Issue: An offer by way of rights to current holders of securities that allows them to subscribe for securities in proportion to their existing holdings.
• Risk-Averse, Risk-Neutral, Risk-Taking:
  Risk-averse describes an investor who requires greater return in exchange for greater risk.
  Risk-neutral describes an investor who does not require greater return in exchange for greater risk.
  Risk-taking describes an investor who will accept a lower return in exchange for greater risk.
• Senior Bond: A bond that has priority over other bonds in claiming assets and dividends.
• Short Hedge: A transaction that protects the value of an asset held by taking a short position in a futures contract.
• Settlement: Conclusion of a securities transaction when a customer pays a broker/dealer for securities purchased or delivered, securities sold, and receives from the broker the proceeds of a sale.
• Short Position: Investors sell securities in the hope that they will decrease in value and can be bought at a later date for profit.
• Short Selling: The sale of borrowed securities, their eventual repurchase by the short seller at a lower price and their return to the lender.
• Speculation: The process of buying investment vehicles in which the future value and level of expected earnings are highly uncertain.
• Stock Splits: Wholesale changes in the number of shares. For example, a two for one split doubles the number of shares but does not change the share capital.
• Subordinated Bond: An issue that ranks after secured debt, debenture, and other bonds, and after some general creditors in its claim on assets and earnings. Owners of this kind of bond stand last in line among creditors, but before equity holders, when an issuer fails financially.
• Substantial Shareholder: A person acquires an interest in relevant share capital equal to, or exceeding, 10% of the share capital.
• Support Level: A price at which buyers consistently outnumber sellers, preventing further price falls.
• Technical Analysis: A method of evaluating securities by relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Contrasted with fundamental analysis which involves the study of financial accounts and other information about the company. (It is an attempt to predict movements in security prices from their trading volume history.)
• Time Horizon: The duration of time an investment is intended for.
• Trading Rules: Stipulation of parameters for opening and intra-day quotations, permissible spreads according to the prices of securities available for trading and board lot sizes for each security.
• Trust Deed: A formal document that creates a trust. It states the purpose and terms of the name of the trustees and beneficiaries.
• Underlying Security: The security subject to being purchased or sold upon exercise of the option contract.
• Valuation: Process by which an investor determines the worth of a security using risk and return concept.
• Warrant: An option for a longer period of time giving the buyer the right to buy a number of shares of common stock in company at a specified price for a specified period of time.
• Window Dressing: Financial adjustments made solely for the purpose of accounting presentation, normally at the time of auditing of company accounts.
• Yield (Internal rate of Return): The compound annual rate of return earned by an investment
• Yield to Maturity: The rate of return yield by a bond held to maturity when both compound interest payments and the investor’s capital gain or loss on the security are taken into account.
• Zero Coupon Bond: A bond with no coupon that is sold at a deep discount from par value.