IBPS GENERAL AWARENESS PRACTICE MODEL QUESTIONS

1.Michael D.Higgins replaced Mary McAleese as the President of which of the following countries?
1) Colombia
2) Ireland
3) Switzerland
4) Zimbabwe
5) Sweden
Answer: (2)

2.Who is the author of the book 'I was There-Memoirs of a Cricket Administrator'?
1) Ajit Wadekar
2)Chandu Borde
3) Jaywant Lele 
4) Kirti Azad
5) Sharad Pawar
Answer: (3)


3.Devinder Pal Singh became the Chairman and Managing Director of which of the following banks in November 2011?
1) BOB
2) IOB
3) OBC
4) Punjab & Sind Bank
5) Punjab National Bank
Answer: (4)

4.Irom Sharmila Chanu's fast entered 12th year in November 2011. She is demanding the repeal of the Armed Forces (Special Powers) Act, 1958 in which of the following states?
1) Manipur
2) Nagaland
3) Tripura
4) West Bengal
5) Jammu & Kashmir
Answer: (1)

5.Bhupen Hazarika, Dada Saheb Phalke award winner, passed away recently. He was a music legend from which of the following states?
1) Orissa
2) Assam
3) Bihar
4) Jharkhand
5) West Bengal
Answer: (2)

6.Which city hosted the G20 Summit in November 2011?
1) Beijing
2) Toronto
3)Cannes
4) London
5) Seoul
Answer: (3)

7.India signed an agreement to promote oil exploration in South China Sea with which of the following countries during its President Troung Tan Sang's visit to New Delhi in October 2011?
1) Myanmar
2) China
3) Cambodia
4) Vietnam
5) Thailand
Answer: (4)

8.India's Polar Satellite Launch Vehicle(PSLV-C18)put VesselSat in orbit recently. Which country has built this satellite that will help in locating ships?
1) France
2) Luxembourg
3) USA
4) Germany
5) Russia
Answer: (2)

9.Which of the following statements about the HDI is/are correct?
1)The Human Development Report (HDR) 2011, released by the United Nations Development Programme (UNDP), has ranked India at 134th among 187 countries in the Human Development Index (HDI).
2)Norway topped the list for the second consecutive year. Democratic Republic of the Congo is ranked the last.
3)The HDI is a comparative measure of life expectancy, literacy and standards of living for countries worldwide.
4)The index was developed in 1990 by economists Mahbub ul Haq (Pakistan) and Amartya Sen (India).
5) All the above statements are correct.
Answer: (5)

10.The Special Protection Group (SPG) is responsible for the protection of the Prime Minister of India. Who was appointed the new Director of the SPG in November 2011?
1) B.V.Wanchoo
2) K.Durga Prasad
3) S.Subramaniam
4) K.Aravind Rao
5) None of these
Answer: (2)

11.The President of Myanmar visited India recently. His name?
1) U Thein Sein
2) U Aye Myint
3) Than Shwe
4) U Thant
5) None of these
Answer: (1)

12.Which country will host the World Steel Conference in October 2012?
1) China
2) India
3) Japan
4) USA
5) Australia
Answer: (2)

13.The American computer scientist who created the C programming language passed away recently. His name?
1) Steve Jobs
2) Dennis Ritchie
3) Ken Thompson
4) Patrick Fischer
5) None of these
Answer: (2)

14.Two former Presidents were awarded the 2011 World Food Prize for their success in tackling chronic hunger in their countries. One is Luiz Inacio Lula da Silva (Brazil) and the other is John Ag-yekum Kufuor. John Kufuor is the former President of which of the following African countries?
1) Sudan
2) Angola
3) Nigeria
4) Ghana
5) Ethiopia
Answer: (4)

15.Which team won the Durand Cup football tournament in October 2011? (It is the oldest football tournament in India)
1) Churchill Brothers
2) Prayag United
3) Mohun Bagan
4) Chirag United Kerala
5) None of these
Answer: (1)

16.Indian-American Bobby Jindal has been re-elected to a second term as the Governor of which of the following states in the USA?
1) Texas
2) Louisiana
3) Alaska
4) California
5) South Carolina
Answer: (2)

17.World Diabetes Day is observed every year on which of the following days?
1) October 31
2) November 19
3) November 21
4) November 14
5) November 9
Answer: (4)

18.Queen Elizabeth is the constitutional monarch of how many sovereign nations in the world?
1) 9
2) 16
3) 25
4) 8
5) 11
Answer: (2)

19.Which country has test -fired nuclear capable Hatf-7 or Babur cruise missile with a range of 700 km?
1) Afghanistan
2) Pakistan
3) Iran
4) Syria
5) Iraq
Answer: (2)

20.In the October 2011 Tunisian Constituent Assembly election, the first elections since the Tuni-sian Revolution, which party won 91 of the 217 assembly sea-ts, far more than any other party?
1) Ennahda
2) PDP
3) Ettakatol
4) Al Aridha
5) Congress for the Republic
Answer: (1)

21.November 11 is celebrated as the National Education Day. It commemorates the birthday of which of the following eminent personalities?
1) S.Radhakrishnan
2) C.V.Raman
3) B.C.Roy
4) A.P.J Abdul Kalam
5) Maulana Abul Kalam Azad
Answer: (5)

22.Which country has unveiled the world's biggest and heaviest gold coin, weighing 1,012 kilograms?
1) USA
2) UK
3) Qatar
4) Australia
5) Saudi Arabia
Answer: (4)

23.Which country has the world's largest uranium reserves (24% of the planet's known reserves)?
1) Australia
2) Russia
3) Namibia
4) Ukraine
5) Mongolia
Answer: (1)

24.According to the latest Forbes India 100 richest persons list who is the world's richest Indian with a net worth of $ 22.60 billion?
1) Mukesh Ambani
2) Lakshmi Mittal
3) Azim Premji
4) Shashi Ruia & Ravi Ruia
5) Savitri Jindal
Answer: (1)

25.Whose autobiography is titled "A Shot at History"?
1) Gagan Narang
2) Abhinav Bindra
3) Rahul Dravid
4) Manavjit Singh Sandhu
5) None of these
Answer: (2)

26.Megha Tropiques, the satellite that studies the patterns and dynamics of the monsoon was launched from Sriharikota in October 2011. It is a joint venture between India and which of the following countries?
1) Spain
2) Greece
3) France
4) Portugal
5) USA
Answer: (3)

27.Who was crowned the Miss World 2011 at the 61st edition of the Miss World pageant that was held in London in November 2011?
1) Ivian Sarcos (Venezuela)
2)Gwendoline Ruais (Philippines)
3) Amanda Perez (Puerto Rico)
4) Kanishtha Dhankhar (India)
5) None of these
Answer: (1)

28.Fed Cup is the premier team competition in women's tennis. Which country won the Fed Cup in November 2011?
1) Czech Republic
2) Russia
3) USA
4) Spain
5) Italy
Answer: (1)

29.Which of the following statements is not true with regard to Census 2011?
1)Census 2011 is the 15th Natio-nal Census since 1872 and the 7th after indePendence.
2)The population of India is 121.01 crores compared to the 2001 population of 102.87 crores. (An increase by 181 million)
3)Uttar Pradesh is the most populous state with 19.95 crores while Sikkim is the least populated state (6.07 lakhs)
4)India is now home to 17.5 percent of the world's population-compared to China which hosts 19.4 percent.
5)The literacy rate has increased from 64.83 percent in 2001 to 70.04 percent in 2011.
Answer: (5)
 

30. The Order of St. Andrew, Russia’s top medal was conferred on which of the following given personality recently?
1) Vladimir Putin 

2) Dmitry Medvedev 

3) Mikhail Gorbachev 

4) Boris Yeltsin

5) None 

Answer: (3)

Moody’s cuts outlook on Indian banking system to negative

Moody's Investors Service has downgraded its outlook for India's banking system to negative from stable due to concerns that an increasingly challenging operating environment will adversely affect asset quality, capitalisation, and profitability.

"India's economic momentum is slowing because of high inflation, monetary tightening, and rapidly rising interest rates.

"At the same time, concerns have emerged over the sustainability of the recovery in the US and Europe, and the rise in the borrowing programme of the Indian Government, which could drain funds away from the private credit market," said Mr Vineet Gupta, Vice-President and Senior Analyst, Moody’s.

The credit rating agency’s latest outlook for the Indian banking system is valid for the next 12-18 months.

Given the tightening environment, Moody’s is anticipating that the asset quality will deteriorate over the next 12-18 months, thereby causing an increase in provisioning needs for the banks in FY2012 and FY2013. 

Loan growth, a stress on banks' capital

The rating agency expects loan growth to be a strain on the banks' capital over the horizon of this outlook. As monetary conditions tighten and economic activities slow, it sees bank loan growth to fall to 16-18 per cent in FY2012 and FY2013, from 21 per cent in FY2011 

Profitability to come under pressure

When it comes to profitability, Moody’s expects it to come under pressure due to lower interest margins as deposit rates re-price and get a further push from the latest liberalisation on savings deposit rates.

Bank ratings may come under downward pressure, although currently, the negative outlook on the banking system contrasts with the stable outlook assigned to the bank financial strength ratings of 14 of the 15 rated banks, said the agency in a statement.

For those banks with weaker capital ratios on average and higher asset quality pressures, their standalone ratings are likely to come under pressure as underscored by Moody's downgrade of the State Bank of India's banking financial strength rating to ‘D+/Stable/Baa3’ from ‘C-/Stable/Baa2’ on October 4.

But, on the positive side, Moody's has recognised Indian banks' stable customer deposit base and high level of Government securities holdings, which provide them with a resilient funding and liquidity profile that buffer them against destabilising shocks.

Moody's also expects the Government to remain committed towards providing support to both public and 'private' banks. Such potential support translates to an average one-notch uplift to the banks' debt and deposit ratings to ‘Baa2’, compared with their standalone base line credit assessment of Baa3.

Moody's rates 15 commercial banks in India, which together account for about 66 per cent of the banking system's total assets as at March 2011.

The banking system is dominated by public-sector banks, which account for around 75 per cent of the market in asset terms. The weighted average stand-alone banking financial strength rating is ‘D+’, and mapping to a Baseline Credit Assessment of ‘Baa3’. The average long-term deposit rating is ‘Baa2/Prime-2’.

Taxation system in India

India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax.

Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land revenue and tax on professions are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc.

In last 10-15 years, Indian taxation system has undergone tremendous reforms. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India.

Since April 01, 2005, most of the State Governments in India have replaced sales tax with VAT.


Taxes Levied by Central Government

Direct Taxes
Tax on Corporate Income
Capital Gains Tax
Personal Income Tax
Tax Incentives
Double Taxation Avoidance Treaty

Indirect Taxes
Excise Duty
Customs Duty
Service Tax
Securities Transaction Tax

Taxes Levied by State Governments and Local Bodies
Sales Tax/VAT
Other Taxes

Direct Taxes

Taxes on Corporate Income

Companies residents in India are taxed on their worldwide income arising from all sources in accordance with the provisions of the Income Tax Act. Non-resident corporations are essentially taxed on the income earned from a business connection in India or from other Indian sources. A corporation is deemed to be resident in India if it is incorporated in India or if it’s control and management is situated entirely in India.

Domestic corporations are subject to tax at a basic rate of 35% and a 2.5% surcharge. Foreign corporations have a basic tax rate of 40% and a 2.5% surcharge. In addition, an education cess at the rate of 2% on the tax payable is also charged. Corporates are subject to wealth tax at the rate of 1%, if the net wealth exceeds Rs.1.5 mn ( appox. $ 33333).

Domestic corporations have to pay dividend distribution tax at the rate of 12.5%, however, such dividends received are exempt in the hands of recipients.

Corporations also have to pay for Minimum Alternative Tax at 7.5% (plus surcharge and education cess) of book profit as tax, if the tax payable as per regular tax provisions is less than 7.5% of its book profits.

Following measures were taken in the union budget 2007-08

Surcharge on income tax on all firms and companies with a taxable income
of Rs.1 crore or less to be removed.

A five year income tax holiday for two, three or four star hotels and for convention centres with a seating capacity of not less than 3,000; they should be completed and begin operations in National Capital Territory of Delhi or in the adjacent districts of Faridabad, Gurgaon, Ghaziabad or Gautam Budh Nagar during April 1, 2007 to March 31, 2010.

Concession under section 35(2AB) to be extended for five more years until March 31, 2012.

Tax holiday to undertakings in Jammu & Kashmir to be extended for another five years up to March 31, 2012.

Minimum Alternate Tax (MAT) to be extended to income in respect of which deduction is claimed under sections 10A and 10B; deduction under section 36(1) (viii) to be restricted to 20% of profits each year.

Rate of dividend distribution tax to be raised from 12.5% to 15% on dividends distributed by companies; and to 25% on dividends paid by money market mutual funds and liquid mutual funds to all investors.

Expenditure on free samples and on displays to be excluded from the scope of Fringe Benefit Tax (FBT); ESOPs to be brought under FBT.

An additional cess of 1% on all taxes to be levied to fund secondary education and higher education and the expansion of capacity by 54% for reservation for socially and educationally backward classes.

Tax is payable on capital gains on sale of assets.

Long-term Capital Gains Tax is charged if
• Capital assets are held for more than three years and
• In case of shares, securities listed on a recognized stock exchange in India, units of specified mutual funds, the period for holding is one year.

Long-term capital gains are taxed at a basic rate of 20%. However, long-term capital gain from sale of equity shares or units of mutual funds are exempt from tax.

Short-term capital gains are taxed at the normal corporate income tax rates. Short-term capital gains arising on the transfer of equity shares or units of mutual funds are taxed at a rate of 10%.

Long-term and short-term capital losses are allowed to be carried forward for eight consecutive years. Long-term capital losses may be offset against taxable long-term capital gains and short-term capital losses may be offset against both long term and short-term taxable capital gains.

Personal Income tax

Personal income tax is levied by Central Government and is administered by Central Board of Direct taxes under Ministry of Finance in accordance with the provisions of the Income Tax Act. The rates for personal income tax are as follows:-

Income range (Rupee) Tax Rate (%)

0-100,000 Nil
1,00,000-1,50,000 10
1,50,000-2,50,000 20
2,50,000 and above 30

Surcharges of 10% on total tax is levied if income exceeds Rs. 8,50,000

Recent budget initiatives in this regard are as follows:

Threshold limit of exemption in the case of all assessees to be increased by Rs.10,000 thus giving every assessee a relief of Rs.1,000; in the case of a woman assessee, threshold limit to be increased from Rs.135,000 to Rs.145,000 and in case of a senior citizen from Rs.185,000 to Rs.195,000 giving him or her a relief of Rs.2,000; deduction in respect of medical insurance premium under section 80D to be increased to a maximum of Rs.15,000 and, in case of a senior citizen, a maximum of Rs.20,000.

Rates of Withholding Tax

Current rates for withholding tax for payment to non-residents are:-

(i) Interest 20%
(ii) Dividends Dividends paid by domestic companies: Nil
(iii) Royalties 10%
(iv) Technical Services 10%
(v) Any other services Individuals: 30% of the income
Companies: 40% of the net income

The above rates are general and are applicable in respect of countries with which India does not have a Double Taxation Avoidance Agreement (DTAA).

Tax Incentives

Government of India provides tax incentives for:-
• Corporate profit
• Accelerated depreciation allowance
• Deductibility of certain expenses subject to certain conditions.

These tax incentives are, subject to specified conditions, available for new investment in
• Infrastructure,
• Power distribution,
• Certain telecom services,
• Undertakings developing or operating industrial parks or special economic zones,
• Production or refining of mineral oil,
• Companies carrying on R&D,
• Developing housing projects,
• Undertakings in certain hill states,
• Handling of food grains,
• Food processing,
• Rural hospitals etc.

Overview of Indian Financial System

Financial System of any country consists of financial markets, financial intermediation and financial instruments or financial products. This paper discusses the meaning of finance and Indian Financial System and focus on the financial markets, financial intermediaries and financial instruments. The brief review on various money market instruments are also covered in this study. 

The term "finance" in our simple understanding it is perceived as equivalent to 'Money'. We read about Money and banking in Economics, about Monetary Theory and Practice and about "Public Finance". But finance exactly is not money, it is the source of providing funds for a particular activity. Thus public finance does not mean the money with the Government, but it refers to sources of raising revenue for the activities and functions of a Government. Here some of the definitions of the word 'finance', both as a source and as an activity i.e. as a noun and a verb.

The American Heritage® Dictionary of the English Language, Fourth Edition defines the term as under-

1:"The science of the management of money and other assets.";
2: "The management of money, banking, investments, and credit. ";
3: "finances Monetary resources; funds, especially those of a government or corporate body"
4: "The supplying of funds or capital."

Finance as a function (i.e. verb) is defined by the same dictionary as under-
1:"To provide or raise the funds or capital for": financed a new car
2: "To supply funds to": financing a daughter through law school.
3: "To furnish credit to".
Another English Dictionary, "WordNet ® 1.6, © 1997Princeton University " defines the term as under-
1:"the commercial activity of providing funds and capital"
2: "the branch of economics that studies the management of money and other assets"
3: "the management of money and credit and banking and investments"
The same dictionary also defines the term as a function in similar words as under-
1: "obtain or provide money for;" " Can we finance the addition to our home?"
2:"sell or provide on credit "
All definitions listed above refer to finance as a source of funding an activity. In this respect providing or securing finance by itself is a distinct activity or function, which results in Financial Management, Financial Services and Financial Institutions. Finance therefore represents the resources by way funds needed for a particular activity. We thus speak of 'finance' only in relation to a proposed activity. Finance goes with commerce, business, banking etc. Finance is also referred to as "Funds" or "Capital", when referring to the financial needs of a corporate body. When we study finance as a subject for generalising its profile and attributes, we distinguish between 'personal finance" and "corporate finance" i.e. resources needed personally by an individual for his family and individual needs and resources needed by a business organization to carry on its functions intended for the achievement of its corporate goals.

INDIAN FINANCIAL SYSTEM

 The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and household sector.  While performing their activities these units will be placed in a surplus/deficit/balanced budgetary situations.
There are areas or people with surplus funds and there are those with a deficit.  A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit.  A Financial System is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities.

Financial System;

The word "system", in the term "financial system", implies a set of complex and closely connected or interlined institutions, agents, practices, markets, transactions, claims, and liabilities in the economy.  The financial system is concerned about money, credit and finance-the three terms are intimately related yet are somewhat different from each other. Indian financial system consists of financial market, financial instruments and financial intermediation. These are briefly discussed below;

FINANCIAL MARKETS

A Financial Market can be defined as the market in which financial assets are created or transferred. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend.

Money Market- The money market ifs a wholesale debt market for low-risk, highly-liquid, short-term instrument.  Funds are available in this market for periods ranging from a single day up to a year.  This market is dominated mostly by government, banks and financial institutions.

Capital Market -  The capital market is designed to finance the long-term investments.  The transactions taking place in this market will be for periods over a year.

Forex Market - The Forex market deals with the multicurrency requirements, which are met by the exchange of currencies.  Depending on the exchange rate that is applicable, the transfer of funds takes place in this market.  This is one of the most developed and integrated market across the globe.

Credit Market- Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to corporate and individuals.

Constituents of a Financial System

FINANCIAL INTERMEDIATION

Having designed the instrument, the issuer should then ensure that these financial assets reach the ultimate investor in order to garner the requisite amount.  When the borrower of funds approaches the financial market to raise funds, mere issue of securities will not suffice.  Adequate information of the issue, issuer and the security should be passed on to take place.  There should be a proper channel within the financial system to ensure such transfer. To serve this purpose, Financial intermediaries came into existence. Financial intermediation in the organized sector is conducted by a widerange of institutions functioning under the overall surveillance of the Reserve Bank of India. In the initial stages, the role of the intermediary was mostly related to ensure transfer of funds from the lender to the borrower.  This service was offered by banks, FIs, brokers, and dealers.  However, as the financial system widened along with the developments taking place in the financial markets, the scope of its operations also widened. Some of the important intermediaries operating ink the financial markets include; investment bankers, underwriters, stock exchanges, registrars, depositories, custodians, portfolio managers, mutual funds, financial advertisers financial consultants, primary dealers, satellite dealers, self regulatory organizations, etc. Though the markets are different, there may be a few intermediaries offering their services in move than one market e.g. underwriter.  However, the services offered by them vary from one market to another.

Intermediary	Market	Role
Stock Exchange	Capital Market	Secondary Market to securities
Investment Bankers	Capital Market, Credit Market	Corporate advisory services, Issue of securities
Underwriters	Capital Market, Money Market	Subscribe to unsubscribed portion of securities
Registrars, Depositories, Custodians	Capital Market	Issue securities to the investors on behalf of the company and handle share transfer activity
Primary Dealers Satellite Dealers	Money Market	Market making in government securities
Forex Dealers	Forex Market	Ensure exchange ink currencies

FINANCIAL INSTRUMENTS

Money Market Instruments

The money market can be defined as a market for short-term money and financial assets that are near substitutes for money. The term short-term means generally a period upto one year and near substitutes to money is used to denote any financial asset which can be quickly converted into money with minimum transaction cost.

Some of the important money market instruments are briefly discussed below;

1. Call/Notice Money
2. Treasury Bills
3. Term Money
4. Certificate of Deposit
5. Commercial Papers

1. Call /Notice-Money Market

Call/Notice money is the money borrowed or lent on demand for a very short period. When money is borrowed or lent for a day, it is known as Call (Overnight) Money. Intervening holidays and/or Sunday are excluded for this purpose. Thus money, borrowed on a day and repaid on the next working day, (irrespective of the number of intervening holidays) is "Call Money". When money is borrowed or lent for more than a day and up to 14 days, it is "Notice Money". No collateral security is required to cover these transactions.

2. Inter-Bank Term Money

Inter-bank market for deposits of maturity beyond 14 days is referred to as the term money market. The entry restrictions are the same as those for Call/Notice Money except that, as per existing regulations, the specified entities are not allowed to lend beyond 14 days.

3. Treasury Bills.

Treasury Bills are short term (up to one year) borrowing instruments of the union government. It is an IOU of the Government. It is a promise by the Government to pay a stated sum after expiry of the stated period from the date of issue (14/91/182/364 days i.e. less than one year). They are issued at a discount to the face value, and on maturity the face value is paid to the holder. The rate of discount and the corresponding issue price are determined at each auction.

4. Certificate of Deposits

Certificates of Deposit (CDs) is a negotiable money market instrument nd issued in dematerialised form or as a Usance Promissory Note, for funds deposited at a bank or other eligible financial institution for a specified time period. Guidelines for issue of CDs are presently governed by various directives issued by the Reserve Bank of India, as amended from time to time. CDs can be issued by (i) scheduled commercial banks excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs); and (ii) select all-India Financial Institutions that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI. Banks have the freedom to issue CDs depending on their requirements. An FI may issue CDs within the overall umbrella limit fixed by RBI, i.e., issue of CD together with other instruments viz., term money, term deposits, commercial papers and intercorporate deposits should not exceed 100 per cent of its net owned funds, as per the latest audited balance sheet.

5. Commercial Paper

CP is a note in evidence of the debt obligation of the issuer. On issuing commercial paper the debt obligation is transformed into an instrument. CP is thus an unsecured promissory note privately placed with investors at a discount rate to face value determined by market forces. CP is freely negotiable by endorsement and delivery. A company shall be eligible to issue CP provided - (a) the tangible net worth of the company, as per the latest audited balance sheet, is not less than Rs. 4 crore; (b) the working capital (fund-based) limit of the company from the banking system is not less than Rs.4 crore and (c) the borrowal account of the company is classified as a Standard Asset by the financing bank/s. The minimum maturity period of CP is 7 days. The minimum credit rating shall be P-2 of CRISIL or such equivalent rating by other agencies.

Capital Market Instruments

The capital market generally consists of the following long term period i.e., more than one year period, financial instruments; In the equity segment Equity shares, preference shares, convertible preference shares, non-convertible preference shares etc and in the debt segment debentures, zero coupon bonds, deep discount bonds etc.

Hybrid Instruments

Hybrid instruments have both the features of equity and debenture. This kind of instruments is called as hybrid instruments. Examples are convertible debentures, warrants etc.

Financial System in India

India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets, competition and various services sectors. In a number of sectors Government plays the role of regulator.

Ministry of Finance, Government of India looks after financial sector in India. Finance Ministry every year presents annual budget on February 28 in the Parliament. The annual budget proposes changes in taxes, changes in government policy in almost all the sectors and budgetary and other allocations for all the Ministries of Government of India. The annual budget is passed by the Parliament after debate and takes the shape of law.

Reserve bank of India (RBI) established in 1935 is the Central bank. RBI is regulator for financial and banking system, formulates monetary policy and prescribes exchange control norms. The Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934 authorize the RBI to regulate the banking sector in India.

India has commercial banks, co-operative banks and regional rural banks. The commercial banking sector comprises of public sector banks, private banks and foreign banks. The public sector banks comprise the ‘State Bank of India’ and its seven associate banks and nineteen other banks owned by the government and account for almost three fourth of the banking sector. The Government of India has majority shares in these public sector banks.

India has a two-tier structure of financial institutions with thirteen all India financial institutions and forty-six institutions at the state level. All India financial institutions comprise term-lending institutions, specialized institutions and investment institutions, including in insurance. State level institutions comprise of State Financial Institutions and State Industrial Development Corporations providing project finance, equipment leasing, corporate loans, short-term loans and bill discounting facilities to corporate. Government holds majority shares in these financial institutions.

Non-banking Financial Institutions provide loans and hire-purchase finance, mostly for retail assets and are regulated by RBI.

Insurance sector in India has been traditionally dominated by state owned Life Insurance Corporation and General Insurance Corporation and its four subsidiaries. Government of India has now allowed FDI in insurance sector up to 26%. Since then, a number of new joint venture private companies have entered into life and general insurance sectors and their share in the insurance market in rising. Insurance Development and Regulatory Authority (IRDA) is the regulatory authority in the insurance sector under the Insurance Development and Regulatory Authority Act, 1999.

RBI also regulates foreign exchange under the Foreign Exchange Management Act (FERA). India has liberalized its foreign exchange controls. Rupee is freely convertible on current account. Rupee is also almost fully convertible on capital account for non-residents. Profits earned, dividends and proceeds out of the sale of investments are fully repatriable for FDI. There are restrictions on capital account for resident Indians for incomes earned in India.

Securities and Exchange Board of India (SEBI) established under the Securities and Exchange aboard of India Act, 1992 is the regulatory authority for capital markets in India. India has 23 recognized stock exchanges that operate under government approved rules, bylaws and regulations. These exchanges constitute an organized market for securities issued by the central and state governments, public sector companies and public limited companies. The Stock Exchange, Mumbai and National Stock Exchange are the premier stock exchanges. Under the process of de-mutualization, these stock exchanges have been converted into companies now, in which brokers only hold minority share holding. In addition to the SEBI Act, the Securities Contracts (Regulation) Act, 1956 and the Companies Act, 1956 regulates the stock markets.

STOCK EXCHANGE, COMMODITY EXCHANGE RELATED TERMS

   Arbitration :-

        Arbitration is an alternative dispute resolution mechanism provided by a stock exchange for resolving disputes between the trading members and their clients in respect of trades done on the exchange.

            Barcode Labelling :-

         A Barcode is a printed code that consists of a series of vertical bars, which vary in thickness. Barcodes are capable of being ‘read’ and decoded by barcode scanners. They are used in various industries as application tools. They are used to identify retail sales items, identification cards, library books and other products. They are also utilised to manage work in progress, to track documents and for many other automated identification applications.

            Basis Point (bps) :-

        One basis point is one-hundredth of a percentage point.

            Book Building :-

         A process used to ascertain and record the indicative subscription bids of interested investors to a planned issue of securities. The advantages of this technique of obtaining advance feedback, are that it results in optimal pricing and removes uncertainty regarding mobilisation of funds.

            Book Value :-

        Book value is the net worth that comprises of equity capital plus reserves and surplus minus accumulated losses divided by the number of shares outstanding as rendered in the latest annual report of a company. The book value of an equity share tends to increase as the ratio of reserves and surplus to the paid-up equity capital increases.

     Calendar Spread :-

       This is done between futures contracts. The investor buys the near month contract (ex. October gold) when prices rise or sell the positions in the near months and purchase the forward months contracts. This trading is popular in gold, soya, silver, crude, chana, urad, jeera and chilli.

            CDs :-

         A Certificate of Deposit (CD) is a negotiable promissory note issued by the banks and the Financial Institutions (FIs) with a maturity date of upto a year. It is secure in nature and issued at a discount to the face value (the redemption to investors takes place at the face value).  

            Collateralised Borrowings Lending Obligation (CBLO) :-

        Collateralised Borrowings Lending Obligation (CBLO) is a money market instrument for borrowing against the securities, held in custody by the Clearing Corporation of India Limited (CCIL) for the amount lent.

            Commodity Exchange :-

        Like stock exchanges in capital markets, a commodity exchange is an association or a company or any other body corporate that is organising futures trading in commodities. The new generation National-level exchanges have been set up in a corporatised/demutualised environment. There are three nationally recognised commodity exchanges in India and 22 regional exchanges. The National exchanges are Multi Commodities Exchange of India (MCX) in Mumbai, National Commodities and Derivatives Exchange of India (NCDEX) and National Multi Commodities Exchange (NMCE).       

           Commodity:

        A commodity is a product having commercial value that can be produced, bought, sold and consumed. It is normally in a basic raw unprocessed state. But products derived from primary sector and structured products are also traded at these exchanges. In India, the list includes previous metals, ferrous and non-ferrous metals, spices, pulses, plantation crops, sugar and other soft commodities.

 

            Trading done in the Commodity Exchanges:

        Like the stock market online trading system, commodity exchanges are also typically on the online trading system. It is an order-driven, transparent trading platform, which is reachable to the various participants through the Internet, VSAT and leased line modes operated by members or sub-brokers spread around country.

            Demutualisation :-

      It essentially means segregating the trading rights to member brokers from the ownership and management of the exchanges. It aims at curbing the clout of member-brokers in running the exchanges.

            Due Diligence :-

      An internal audit of a target firm by an acquiring firm. Offers are often made contingent upon resolution of the due dilengence process.

            Exchange Rate :-

        Just as the price of any asset, the exchange rates is the price at which you can buy that currency. If at any given rate, the demand for a currency is greater (lesser) than its supply, its price will r
ise (fall).

            What makes currency rates move ?

       The exchange rate reflects the strength of an economy in terms of its growth performance, balance of payments etc. as well as economic expectations that drive the ‘market sentiment’ and how much the market has reacted or ‘discounted’ the anticipated information.

            Are exchange rates entirely market-determined ?

        Under the current managed float regime, most currencies, including India, let their rates fluctuate according to market forces. But if a currency appears to be ‘overvalued’ or ‘undervalued’ by the market or if rate movements are significantly adversely affecting an economy’s macroeconomic performance, then Central banks intervene to depreciate (or appreciate) their currency. Exchange rates also move on expectations of change in regulations relating to exchange markets and official intervention. In India, the Reserve Bank’s basic philosophy is a flexible one, without any particular ‘target’ for the rupee’s rate. With a broad objective to avoid excessive volatility, facilitate growth of Indian exports and generate confidence among overseas investors.

                    Futures contract :-

      Futures contract is an agreement between two parties to buy or sell a specified quantity and defined quality of a commodity at a certain time in future at a price agreed upon at the time of entering into the contract. This is typically traded at regulated commodity exchanges. 

            Futures and options :-

       A futures contract is an agreement between two parties to buy or sell an underlying asset at a certain time in the future at a certain price. It has a standardised date and month of delivery, quantity and price.

   An option gives the buyer the right but not the obligation to buy the underlying asset. A futures contract on the other hand is obligatory on both the buyer and the seller is a transaction between the buyer and seller to buy or sell an asset at an agreed price at a future date. This is a common feature of options trading in shares, stocks and commodities.

            Geographic Information Systems (GIS) :-

       The GIS are computer systems used to store and process geographic data. The GIS scores over other data management systems in its ability to present spatial relationships in a digital map form that is easy to visualise and understand. Data is the central resource of a GIS system. The GIS systems process two kinds of data-spatial and attribute. Spatial data gives the geographic location of a point of interest (e.g. railway station, school, bank branch, the ATM etc). Attribute data contains other characteristics of that point of interest.

 

            Hot Money :-

    Money that moves across country borders in response to interest rate differences and that moves away when the interest rate differential disappears.

            Independent Director :-

          An independent Director is a non-executive Director on the board of a company who has integrity, expertise and independence to balance the interests of the various stakeholders. The idea of having them is to bring objectivity to the board decisions and to protect general interests of the company, including that of the minority and the small shareholders. The independent Directors are expected to improve the corporate governance in a company.

            Who cannot be an independent Director in a listed company ?

        According to the SEBI, having a ‘pecuniary’ relationship with the company or its arms, other than receiving the Director’s remuneration, is a disqualification. The independent Director must not be related to the promoters or anyone in the senior management position from one level below the board. He should not have been an executive of the company or of its audit, consulting or legal firms in the past three financial years.

            Which listed entities are outside the scope of the revised Clause 49 ?

         The Clause will apply to the listed entities which are not companies but body corporates such as the private and the PSU banks, the Financial Institutions (FIs) and the insurance companies, only to the extent that it does not violate the laws governing them. Revised Clause 49 does not apply to mutual funds.

           

            Inter-exchange arbitrage :-

        This is popular among liquid commodities like gold and silver, where the arbitrage can take place between the Indian exchanges and the foreign exchanges, where contract specifications are similar.

            Interest Rate Swaps (IRS) :-

        Interest Rate Swaps (IRS) are Over-The-Counter (OTC) products that involve an exchange of cash flows between the two counter parties at pre-determined specifications wherein the fixed rate interest payments are exchanged for floating rate payments.

            Islamic Banking :-

        It is banking practiced as per the Islamic principles as prescribed in the ‘shariah’ known as ‘Fiqh al-Muamalat’ (Islamic rules on transaction). The Islamic law prohibits interest on both the loans and the deposits. Interest is also called ‘riba’ in Islamic discourse. The argument against interest is that money is not good and profit should be earned on goods and services only and not on control of money itself.

            What are the different products offered ?

        Investment finance is offered by these banks through ‘Musharka’, where a bank participates as a Joint Venture (JV) partner in a project and shares the profits and losses. Investment finance is also offered through ‘Mudabha’, where the banks contribute the finance and the client provides the expertise, management and labour and the profits are shared in a pre-arranged proportion, while the loss is borne by the bank.

            Where is it practised ?

        Islamic banks have come into being since the early 70s. There are nearly 30 Islamic banks all over the world, from Africa, Europe to Asia and Australia and are regulated even within the conventional banking system.

            Kaizen :-

        Kaizen comes from two words : Kai, which means ‘to change’ and zen, which means ‘good or for the better’. Together, the words mean continuous change for the better. It is not just a philosophy of the workplace, it also means continuously improving in every facet of life, including business, industry, commerce Government and diplomacy, among others. In full implementation, it becomes the foundation of all activities. Kaizen requires everyone in the organisation to be involved in the improvement process executives, management, supervisors and workers.

            Letter of Offer :-

         A Letter of Offer is a document addressed to the shareholders of the target company containing disclosures of the acquirer/Persons Acting in Concert (PACs), target company, their financials, justification of the offer price, the offer price, number of shares to be acquired from the public, purpose of acquisition, future plans of acquirer, if any, regarding the target company, change in control over the target company, if any, the procedure to be followed by acquirer in accepting the shares tendered by the shareholders and the period within which all the formalities pertaining to the offer will be completed. 

           

            Merchant Banker :-

        An intermediary who provides various financial services, other than lending money, such as managing public issues, underwriting new issues, arranging loan syndications and giving advice on portfolio management, financial restructuring, mergers and acquisitions.

            Mid-cap stock :-

         The name 'mid-cap' originates from the term medium capitalised. It is based on the market capitalisation of the stock. The National Stock Exchange (NSE) defines the mid-cap as stocks whose average six months' market capitalisation is between Rs.75 crore and Rs.750 crore. In the US, the midcap shares are those stocks that have a market capitalisation ranging from Rs.9,000 crore to Rs.45,000 crore. In India, these shares are classified as large-cap shares.

            MIFOR :-

       MIFOR is an interest rate derivative, which is calculated by adding dollar London Interbank Offered Rate (LIBOR) rates with the rupee-dollar forward premia. The MIFOR rate is hence, the borrowing cost from overseas. It is utilised to hedge against the movement of global interest rates. LIBOR is the term money benchmark for the Euro-dollar market.

            Net worth :-

       Net worth is the difference between the total assets and total liabilities.

            Participatory Notes (PNs) :-

       Participatory Notes (PNs) are a derivative instrument issued by the FIIs to their overseas clients, who are not registered with the Indian regulators.

            Plea Bargaining :-

         Plea Bargaining is the import of principles of contract into criminal law.

 

            Penny Stocks :-

        Penny stocks is a term used to define cheaply available stocks of typically loss-making companies. Penny stock is used in the context of general equities. The stocks that typically sell for less than $1 share, although it may rise to as much as $10/share after the Initial Public Offering (IPO), usually because of heavy promotion.

            Podcasting :-

          A term based on the name of Apple’s portable media player, allows customers to download audio and now video segments for free, to their computers and portable devices.

            Profit Booking :-

        Selling shares when their prices have risen above their purchase price.

            Profit taking :-

        Selling commodities, securities etc. at a profit, either after a market rise or because they show a profit at current levels but will not do so if an expected fall in prices occurs.

           

            Settlement :-

         Settlement refers to the import of principles of contract into civil or administrative law.

            The Cash and Carry Arbitrage :-

        This is the easiest form of arbitrage, where the investor has to buy the commodity in the spot market and sell it in the futures market. This is largely successful in gold and silver and is also popular among various agricultural commodities.

            The Price Earning ratio (P/E ratio) :-

         The P/E ratio is the ratio between the Market Price of the Share (MPS) and the Earning Per Share (EPS). This ratio tells us how many times the market price of the shares is vis-à-vis its earning per share.

IBPS CLERKS EXAM GENERAL STUDIES PRACTICE QUESTIONS

1. We read in the newspapers about the deregulation of the pricing of petroleum products by the Government of India. Consider the following outcomes of the above step:

A This will make petroleum products prices cheaper and the pricing system will become more transparent.

B. This will improve the financial health of the country's Oil Marketing Companies (OMCs) and contribute to fiscal consolidation

C. This will end the subsidy on petroleum products.

Which of the above statements holds correct?

a. Only A         

b. Only B         

c. Only B and C                       

d. Only A and C                      

e. None of these 

 

2. Which of the following committees has given its recommendations on "Financial inclusion"?

a. Vaghul Committee  

b. Raghuram Rajan Committee                      

 c. Rakesh Mohan Committee               

d. Kelkar Committee       

e. None of these

 

3. The agricultural census is done at which of the following intervals?          

a. There is no fixed term                      

b. Every year               

c. Once in 3 years        

d. Once in 10 years      

e. Once in 5 years

 

4. Development of watershed and dry land farming is the part of which of the following points of the Twenty point Programe of the Government of India?

a. Kisan Mitra              

b. Khadya Suraksha                 

c. Garibi Hatao                        

d. Jan Shakti                

e. None of these

 

5. The high rate growth of economy certainly reduces

a. Gender inequalities                          

b. Poverty                    

c. Population of a county                     

d. Flow of foreign investment                   

e. None of these

6.  In economic, it is generally believed that the main objective of a public sector financial company, like bank is to

a. Employ more and more people

b. Maximise total profits

c. Maximise total production

d. Provide financial services to the people across the country

e.  Sell goods at subsidized 

 

7. Whenever the RBI does some Open Market Operation transaction, it actually wishes to regulate which of the following?

a. Inflation only                                         

b. Liquidity in economy    

c. Borrowing powers of the banks       

d. Flow of foreign direct investment

e. None of these

 

8. What is Repo Rate?

a. It is the rate at which RBI sells government securities to banks.

b. It is the rate at which banks borrow rupees from RBI.

c. It is the rate at which RBI allows small loans in the market

d. It is the rate which is offered by banks to their most valued customers or prime customers

e. None of these

 

9. In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as

a. Insider trading          

b. Future trading          

c. Foreign trading         

d.  Stock trading                        

e. None of these

 

10. As per the instructions of the RBI, banks are required to give what percentage of their priority sector lending to weaker sections of the society?

a.15%              

b.25% .                        

c. 30%             

d. 35%                         

e. 40%

11. The process of the total valuation of the financial assets of a company is technically known as ' :

a. Market capitalization                        

b. Gross Domestic Product                  

c. Net wealth of the country    

d. Gross Domestic Resources    

e. None of these

 

12. Many a time, we read about rural indebtedness in various newspapers and magazines. What are the main causes of the rural indebtedness?

A  Poverty                  

B. Inability to repay loans                                                                                 

C. Zamindari System, which prevented farmers from owning the land

a. Only A        

b. Only B         

c. Both A and B                       

d. Only C         

e. All of these

 

13. Very often we read about Special Economic Zones (SEZs) in newspapers. What is the purpose of promoting SEZs in India?

A. They are established to promote exports.               

B. They are established to attract investments from foreign countries.

C They are established to help the poorest of the poor in India as the activities of these zones are reserved only for the poor and those living below the poverty line.

a. Only A         

b. Only B         

c. Only C         

d. Only A and B                      

e. None of these

 

14. Which of the following is the percentage up to which FDI in defence sector is allowed?

a. 26%                         

b.41%              

c. 31%             

d.49%                         

e. None of these

 

15. The maximum amount of the total revenue earned by the Government of India comes from

a. Income Tax              

b. Customs Duty          

c. Excise Duty                         

d. Value Added Tax                

e. Corporate Tax

 

16. Which public sector bank celebrated its Platinum Jubilee in late 2010?

a. Dena Bank               

b. Bank of Maharashtra                       

c. Bank of Baroda       

d. Canara Bank                        

e.  None of these

 

17. Which of the following is not among the six infrastructure industries that comprise the "Core Sector"?

a. Crude oil                  

b. Petroleum refinery products                        

c. Chemicals and fertilizers      

d. Coal 

e.  All the above

 

18. Who among the following will the chairperson of the committee set up by the RBI on "Customer Services in Banks"?

a. YV Reddy                

b. Deepak Prakash                   

c. M Damodaran          

d. Subbarao                 

e. None of these

 

19. Which of the following is the full form of 'BRA" as used in banking industry?

a. Brazilian and Russian Association   

b. Banking Restructuring Act   

c. Borrowing Risk Assessment 

d. Banking Regulation Act                         

e. None of these

 

20. The Securities and Exchange Board of India has decided to allow _____ to visit SEBI Bhavan to help them learn about the capital market regulator. .

a. Students                   

b. Foreign investors                 

c. Tourists d. Press                   

d. Press            

e. None of these

21. Which state government has announced to undertake a detailed census of cancer patients in the state?

a. Delhi            

b. Haryana                   

c. Punjab          

d. Orissa          

e. None of these

 

22. The Central Government has revised wages of agricultural labourers under the Mahatma Gandhi National Rural Employment. The basic wage is revised once in

a. 2 Years        

b. 3 Years        

c. 4 Years        

d. 5 Years        

e. None of these

 

23. Which of the following cannot be called a Debt Instrument as referred in financial transactions?

a. Certificate of Deposits         

b. Bonds                      

c. Stocks                      

d. Commercial Papers  

e. Loans

 

24. Which of the following correctly describes sub-prime lending?

A. Lending to people with less than ideal credit status

B. Lending to people who are valued customers of the banks

C. Lending to those who are not regular customers of a bank

a. Only A         

b. Only B         

c. Only C         

d. Only A and B                      

e. None of these

 

25. Which of the following services provided by a bank in India is not liable for taxation for Service Tax as per existing laws?

a. Safe Deposit Lockers                                               

b. Merchant Banking Services             

c. Credit cards  

d. Discount earned on certain discounted bills        

e. None of these

 

26. For the revival of which of the following fertilizer units of the Fertilizer Corporation of India has the Steel Authority of India Limited been the given the go-ahead by the Cabinet Committee on Economic Affairs (CCEA) recently?

a. Burnpur                   

b. Sindri           

c. Rourkela                  

d. Bhilai           

e. None of these

 

27. According to the latest figures released by the Commerce Ministry. What Is the percentage growth of India's exports durina 2010 -11?

a.46.%                         

b.45.7 %          

c. 52 %                                    

d. 56.9 %         

e. None of these 

 

28. Telecom Commission, the apex decision-making body of the Department of Telecom has permitted Imposition of a uniform licence fee of _______ on all telecom operators.

a. 6%               

b. 6.6%            

c. 8.5%                        

d.10%              

e. None of these

 

29. Securities and Exchange Board of India (SEBI) has proposed to create regulations for alternative investment funds under the title 'SEBI (Alternative Investment Fund) Regulations'. With regard to this proposal, which of the following is/are not true?

a. SEBI made it optional for all types of private pools of capital or investment funds to seek registration with SEBI.

b. For PE funds, investments would be mainly in unlisted companies or companies proposed to be listed.

c. For infrastructure equity funds, minimum half of the investment would, have to be in equity of infrastructure projects/companies.

d. Only 1 and 2

e. None of these

 

30. Name the sports channel that has acquired the exclusive broadcast rights for Euro 2012 in the Indian subcontinent (India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives) for `100 crore.

a. ESPN           

b. DD Sports                

c. Neo Sports               

d. Ten Sports         

e. None of these

 

31. NASA scientists have recently announced that they have found the first evidence of flowing water on which of the following planets.

a. Mars             

b. Jupiter                      

c. Mercury                   

d. Venus          

e. None of these

 

32. Italy approved a draft law banning women from wearing veils in public. Besides Italy which of the following nations have banned women from wearing veil in public?

a. India and Pakistan                

b. China and Afghanistan        

c. Belgium and France                                      

d. Bangladesh and Bhutan           

e. None of these

 

33. The Prime Ministers Economic Advisory Council headed by C Rangarajan has submitted its report on economy-"The Economic Outlook and the Review". Who among the following is not a member of it?

a. Suman K Bery         

b. Dr Sumitra Chaudhary         

c. M Govinda Rao       

d. BB Bhattacharya      

e. Dr KP Krishnan 

 

34. Which of the following departments of the Government of India has initiated the Public Bicycle Scheme for 10 cities under the Mission for Sustainable Habitat?

a. Rural Development Ministry                        

b. Urban Development Ministry                      

c. Environment Ministry 

d. Surface Transport Ministry                  

e. None of these

 

35. After allegations of bio-piracy complaints against US based multinational Monsanto with regard to Bt brinjal, for the hybrid research of which of the folio wing vegetable products is the National Biodiversity Authority of India (NBA) processing Monsanto's application?

a. Cauliflower              

b. Bittergourd               

c. Cabbage                   

d. Potato          

e. Onion

 

36. Consider the following negative impacts on the Indian economy in the context of the ongoing US debt crisis:

A. Adverse impact on Indian exports             

B. RBI will be forced to cut down interest rates

C. FDI flow will slow down.

a. Only A                     

b. Only A and B                                  

c. Only A and C           

d. All A, B and C         

e. None of the above

 

37. Name the Indian executive in the global credit rating agency Standard and Poor's under whose leadership the decision of the historic credit downgrade of the United States was taken and later he was forced to step down.

a. Sanjay Saini             

b. Karan Bhagat           

c. Rajat Gupta              

d. Devesh Sharma                    

e. None of these

 

38. Who has written the book The Financial inclusion: Imperative and Sustainable Approaches?'

a. Deepali Pant Joshi                

b. C Rangarajan           

c. M Damodaran          

d. Amartya Sen.                       

e. None of these

 

39. Who is the author of the book Last Man In Tower?

a. Jhumpa Lahiri          

b. Samit Basu               

c. Aravind Adiga         

d. Amit Chaudhary                  

e. None of these

 

40. Goldman Sachs; citing improvement in macroeconomic situation, has recently upgraded India's rating from 'underweight' to

a. Overweight                          

b. Market weight          

c. In-line                      

d. Underperformer       

e. Market outperformer

41. In which of the following states did the Sadar Hills District hood Demand Committee (SHDDC) recently impose an economic blockade in pursuance of their demand for a separate district?

a. Manipur       

b. Meghalaya               

c. Tripura         

d. Assam          

e. Arunachal Pradesh

 

42. In which of the following public sector companies has     the government recently offloaded its stake to mop up revenue to the tune of Rs.1,144 crores?

a. Indian Oil Corporation         

b. Rashtriya Ispat Nigam Limited         

c. Power Finance Corporation  

d. Hindustan Copper             

e. None of these

 

43. What is the revenue target from disinvestment in Central  public sector enterprises set in the Union Budget 2011-12?

a. Rs. 40,000 crore           

b. Rs. 50,000 crore           

c. Rs. 70,000 crore                       

d. Rs. 90,000 crore                      

e. None of these

 

44. In which of the following Western countries did large scale rioting take place in predominantly African and Caribbean neighbourhoods recently?

a. France          

b. Germany                  

c. Italy             

d. England       

e. None of these

 

45. PC Alexander, who died recently, was a veteran

a. Bureaucrat               

b. Nuclear scientist                  

c. Educationist                         

d. Environmentalist      

e. None of these

 

46. Who is the chairman of the National Commission for       Scheduled Castes?

a. Justice KG Balakrishnan      

b. Wajahat Habibullah             

c. Justice MN Rao        

d. PL Punia      

e. None of these

 

47. Justice Soumitra Sen, against whom impeachment proceedings have been initiated in the Parliament, is the judge of

a. Sikkim High Court               

b. Kamataka High Court                      

c. Calcutta High Court                                      

d. Guwahati High Court               

e. None of these

 

48. Name the chief of the three-member interlocution team on Kashmir which is to submit its report to the government shortly.

a. NM Ansari               

b. Rdha Kumar                        

c. Dileep Padgaonkar               

d. Karan Singh             

e. None of these

 

49. Who is the author of the book Through the Corridors of Power: Insider Story?

a. HNHaksar                

b. Brijesh Mishra         

c..CP Bhambhri                       

d. Kuldip Nayar                                  

e. PC Alexander

 

50 Which of the following states provides the Vishwakarma Contributory Pension Scheme to the labourers of 20 trades of the unorganized sector?

a. Uttar Pradesh           

b. Punjab         

c. Madhya Pradesh      

d. Bihar                       

e..Rajasthan

 

ANSWERS:

 

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

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

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

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

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