Model Test-3

1.‘Sub Prime Lending’ is a term applied to the loans made to

(a)     Those borrowers who do not have a good credit history
(b)     Those who wish to take loan against the mortgage of tangible assets
(c)     Those who have a good credit history and are known to bank for last 10 years
(d)     Those borrowers who are most preferred customers of the bank
(e)     None of these
2. As per the new policy the number of Judges in the Supreme Court would be now
(a) 21                                      (b) 25
(c) 26                                      (d) 30
(e) 31
3.          The President of India recently signed the much-awaited notification for the implementation of the suggestions made by the ‘Delimitation Commission’. What will be the effect of this notification?
(a)     Parliamentary and Assembly constituencies will be             redefined
(b)     Candidates               from        SC/ST
categories will get ail benefits for another 15 years time
(c)     The boundaries of the National Capital, New Delhi will be extended further
(d)     Operations of the Cooperative Banks and Societies will not be limited to the state of their origin. They will also be like Public Sector Banks.
(e)    None of these

4.           As we all know rise of the ‘BRICs’ has left a vast impact on almost all aspects of the global economy. However, which of the following cannot be called as the direct effect(s) of ‘Rise of the BR4Cs’ on global / other powerful economy / economies ?

1.       Countries like China wish to learn more about outsourcing from India.
2.       It has made countries to suffer from sub-prime crisis.
3.       EURO has become a powerful currency and many non-Euro countries are in ‘Swap Agreement’           with various nations.
(a) Only 1                            (b) Only 2
(c)     Only 3
(d)     All 1, 2 and 3
(e)     None of these
5.           As per the reports published in the newspapers the banks, particularly public sector banks are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India ?
1. CARE                              2.CRISIL
3.     ULIP
(a) Only 1
(b) Only 2
(c)     Only 1 and 2
(d)     Only 3
(e)     All 1, 2 and 3

6.           As per the newspaper reports the RBI is planning to introduce ‘Plastic Currency Notes’. What is/are the benefits of ‘Plastic Notes’ ?
1.       Their Shelf life will be longer.
2.       It will replace plastic money or credit, debit cards which are giving birth to many fraudulent practises.
3.       Printing will be cheaper.
(a) Only      3                      (b) Only     2
(c)     Only 1
(d)     All 1, 2 and 3
(e)     None of these
7.           Which is the maximum stake the Govt, of India has in any public sector bank at present ?
(a)    40%                             (b) 49%
(c)    50%                             (d) 64%
(e) 74%
8.           The Govt, of India has launched a new scheme for the ‘Girl Child’. What is the name of the scheme ?
(a)     Raj Lakshmi
(b)     Rani Bitia
(c)     Dhan Lakshmi
(d)     Aanandita
(e)     None of these
9.           As per the reports published in the newspapers/journals how much amount the Govt, of India is planning to infuse in Public Sector Banks to make them competitive and strong globally ?
About :
(a)    Rs. 10,000 crore
(b)     Rs. 15,000 crore
(c)     Rs. 20,000 crore
(d)     Rs. 30,000 crore
(e)     None of these
10.       What is meant by ‘Underwriting’ the term frequently used in financial sector ?
(a)     Under valuation of tKe assets
(b)     The act of taking on a risk for a fee
(c)     Giving a guarantee that a loan will not become a bad loan
(d)     The act of permission to float an IPO
(e)     None of these
11.       The Govt, of India recently constituted the New Finance Commission (13th,. What are its major functions?
To decide-
1.       The salary structure of the employees of the, Central Govt.
2.       The distribution of the net proceeds of taxes between states and Central Govt.
3.       Rate of Income tax and other taxes collected by the Union Govt.
(a) Only 1                             (b)   Only   2
(c)     Only 3
(d)     All 1, 2 and 3
(e)     None of these
12.       As per the news published in some newspapers and magazines two PSUs National Thermal Power Corporation and Coal India Ltd., are going to float a joint venture ‘SPV’. What is the full form of ‘SPV’?
(a)     Small Power Venture
(b)     Special Purpose Vehicle
(c)    Special Power Venture
(d)    Small Purpose Vehicle
(e)    None of these
13. Who amongst the following is the author of the book ‘Economic Nightmare of India’ ?
(a)    Morarji Desai
(b)    K. Rajeshwar Rao
(c)    Charan Singh
(d)    Jyoti Basu
(e)    None of these
14.     The Planning Commission of India has set-up a 12 member committee on financial sector reforms. Who is the Chairman of the Committee?
«
(a)    Janki Raman
(b)    Raghuram Rajan
(c)    Rakesh Mohan
(d)    K. V. Kamath
(e)    None of these
15.     Very often we read about the Doha Ministerial Conference 2001 in reference to WTO negotiations. What were the major issues over which nations were of different opinions?
1.     Providing subsidy to agriculture.
2.     Export of patented drugs/ medicines by developed nations.
3.     Restriction on natural movement of people from one nation to other.
(a)    Only 1
(b)    Only 2
(c)    Only 3
(d)    Both 1 and 3
More of these
Which of the following is the name of very violent and serious types of winds which bring lot of disaster ?
(a)    Trade winds
(b)    Hurricane
(c)    Cirrus
(d)    Stratus
(e)    None of these
17.     As per the reports published in various journals and newspapers the ‘small borrowers’ in rural areas still prefer to take informal route for their credit needs. Which of the following is the ‘informal route’ of credit in financial sector ?
(a)    Credit cards
(b)    Loan against gold from financial institute
(c)    Debit cards
(d)    Money lender
(e)    None of these
18.     Indra K. Nooyi who was elected as the Chairperson of the US-lndia Business Council is the CEO of which of the following Companies?
(a)    PepsiCo.
(b)    Infosys
(c)    Tata Consultancy Services
(d)    NIIT
(e)    None of these
19.     Which of the following is not a banking/finance related term?
(a)    Credit Wrap
(b)    EMI
(c)    Held to Maturity
(d)    Exposure Limit
(e)    Diffusion
20.     The Telecom Regulatory Authority of India (TRAI) recentfy agreed to allow foreign direct investment in the field of mobile television services. Upto what extent FDI is allowed in this field?
(a) 50%                       (b) 60%
(c) 64%                       (d) 70%
(e) 74%
21.      The Global Employment Trends Report 2008 published by the International Labour Organisation has indicated that there may be increase in global unemployment. What according to them is/are the major reasons of this possibility?
1.     Turmoil in Credit Markets all over the world.
2.     Rise in oil prices in international market.
3.     Civil unrest in some under and undeveloped nations.
(a)  Only 1
(b)                 Only 2
(c)  Only 3
(d)                 Only 1 and 2
(e)  None of these
22.      Basel-ll norms are associated with which of the following aspects of the banking industry ?
(a)  Risk management
(b)                 Manpower planning
(c)    Retirement benefits for the employees
(d)                 Corporate Governance
(e)  None of these
23.      The instrument measuring currents of small magnitude is called :
(a)  Electrometer
(b)                 Galvanometer
(c)  Manometer
(d)                 Micrometer
(e) None of these
24.      Which of the following countries is trying to launch a Satellite to study the sun ?
(a)    USA
(b)    India
(c)    Russia
(d)    China
(e)    None of these
25.      Literacy Rate is Highest ” which of the following states ?
(a)    Delhi
(b)    Maharashtra
(c)    Kerala
(d)    Tamil Nadu
(e)    West Bengal
26.      Which of the following cannot be called a major wheat producing state?
(a)    Punjab
(b)    Kerala
(c)    Rajasthan
(d)    Uttar Pradesh
(e)    Haryana
27.      ‘Yen’ is the currency of
(a) China                      (b)   France
(c)    Britain
(d)    Italy
(e)    Japan
28.      Which of the following cannot be called as a benefit of introduction of Information Technology in Banks?
1.     They have replaced paper based and labour intensive methods with automated processes.

2.     It has created a customer friendly atmosphere in banks.

Remote banking and anytime banking is possible.
3. It has made banking perfectly fool proof and safe as breaking electronic security is almost impossible.
(a) Only 1                     (b)  Only  2
(c)    Only 3
(d)    Both 1 and 2
(e)    All 1, 2 and 3
29.      ‘Long Walk to Freedom’ is a book written by-
(a)    Sonia Gandhi
(b)    L.K. Advani
(c)    Nelson Mandela
(d)    Benazir Bhutto
(e)    Nawaz Sheriff
30.      With the help of new advancements, banks in India have implemented various payment systems which are time and cost effective. Which of the following is not one of these payment systems being used by the banks in India ?
(a)    Real Time Gross Settlement (RTGS) System
(b)    Duplex High Speed Data Service (DHSD)
(c)    Structural Financial Messaging Solution (SFMS)
(d)    Centralized Fund Management System (CFMS)
(e)    Negotiated Dealing System (NDs)
31.      Headquarters of the United Nations Organization is located in:
(a)    New York
(b)    Tokyo
(c)    London
(d)    Kathmandu
(e)   Moscow
32.      As we have noticed many banks of Indian origin are opening offices/ branches in foreign countries. Why is this trend emerging at a very fast pace ?
1.     These banks wish to provide banking facilities to foreigners as banking facilities are not plenty in many foreign countries. India wants to take an advantage of the situation.
2.     These banks wish to help Indian firms to acquire funds at internationally competitive rates.
3.     These banks wish to promote trade and investment between India and other countries.
(a) Only 1                     (b)   Only 2
(c)    Only 3
(d)    All 1, 2 and 3
(e)    Only 2 and 3
33.      Which of the following countries does not play international cricket?
(a)    Japan
(b)    New Zealand
(c)    Australia
(d)    Bangladesh
(e)    Sri Lanka
34.      Kosovo declared itself independent from which of the following countries?
(a) Ukraine                  (b) Croatia
(c)   Serbia                   (d) Russia
(e)   None of these
35.      A National Development Fund was created by the Govt, of India a few years ago. What was the purpose of the fund?

Remote banking and anytime banking is possible.

3. It has made banking perfectly fool proof and safe as breaking electronic security is almost impossible.
(a) Only 1                     (b)  Only  2
(c)    Only 3
(d)    Both 1 and 2
(e)    All 1, 2 and 3
29.      ‘Long Walk to Freedom’ is a book written by-
(a)    Sonia Gandhi
(b)    L.K. Advani
(c)    Nelson Mandela
(d)    Benazir Bhutto
(e)    Nawaz Sheriff
30.      With the help of new advancements, banks in India have implemented various payment systems which are time and cost effective. Which of the following is not one of these payment systems being used by the banks in India ?
(a)    Real Time Gross Settlement (RTGS) System
(b)    Duplex High Speed Data Service (DHSD)
(c)    Structural Financial Messaging Solution (SFMS)
(d)    Centralized Fund Management System (CFMS)
(e)    Negotiated Dealing System (NDs)
31.      Headquarters of the United Nations Organization is located in:
(a)    New York
(b)    Tokyo
(c)    London
(d)    Kathmandu
(e)   Moscow
32.      As we have noticed many banks of Indian origin are opening offices/ branches in foreign countries. Why is this trend emerging at a very fast pace ?
1.     These banks wish to provide banking facilities to foreigners as banking facilities are not plenty in many foreign countries. India wants to take an advantage of the situation.
2.     These banks wish to help Indian firms to acquire funds at internationally competitive rates.
3.     These banks wish to promote trade and investment between India and other countries.
(a) Only 1                     (b)   Only 2
(c)    Only 3
(d)    All 1, 2 and 3
(e)    Only 2 and 3
33.      Which of the following countries does not play international cricket?
(a)    Japan
(b)    New Zealand
(c)    Australia
(d)    Bangladesh
(e)    Sri Lanka
34.      Kosovo declared itself independent from which of the following countries?
(a) Ukraine                  (b) Croatia
(c)   Serbia                   (d) Russia

(e)   None of these

35.      A National Development Fund was created by the Govt, of India a few years ago. What was the purpose of the fund?
1.     Boost investment in social sector projects to promote education, healthcare and employment.
2.     Capital investments in selected profitable PSEs to yield adequate returns.
3.     To fund revision in pay structure of Central Govt, employees.
(a)  Only 1                    (b)    Only 2
(c)   Only 3
(d)   Both 1 and 2
(e)   None of these
36.      Census is done in India after a gap of every
(a)  5 years                   (b)  7 years
(c)   10 years
(d)   12 years
(e)   15 years
37.      Which of the following countries is not a member of the South Asian Association for Regional Co­operation (SAARC)?
(a)  Maldives                 (b) Pakistan
(c)  Sri Lanka                (d)     Nepal
(e) South Korea
38.      Who amongst the following is the author of the book ‘An Angel in the Cockpit’ ?
(a)   Kumar Managalam Birla
(b)   Vijaypath Singhania
(c)   Vijay Mallya
(d)   Kiran Bedi
(e)   None of these
39.      Which of the following is/are the easy way(s) to handle inflations in the economy?
1.    Increase the money supply in the economy.
2.     Curb the money supply in the economy.
3.     Increase the credit inflow in the economy.
4.     Curb the credit inflow in the economy.
(a)  Only 1 and 3
(b)  Only 2 and 4
(c)                                         Only 1         (d) Only 3 (e) None of these
40.      Members of Rajya Sabha are elected for a period of-
(a)  Four years
(b)  Two and a half years
(c)                                         Five years   (d) Six years
(e)    Till the age of 68 years
41.      Many a times we come across a term in field of banking operation which reads ‘ECS’. What is the full form of the same ?
(a)  Electronic Coding System
(b) t Extra Coding system
(c)  Electronic Clearing System
(d)

Elementary Clearing System

(e)  None of these
42.      Union Budget is always presented first in the –
(a)  Rajya Sabha
(b)  Lok Sabha
(c)  Joint Session of the Parliament
(d)  Meeting of the Union cabinet
(e)  None of these
43.      There have been suggestions in some quarters that stamp duties levied on various deeds and documents should be abolished. Which of the following is the argument(s) given in favour of the abolition of the stamp duties?
1.     Stamp duties discourage people to take loans. Hence, it is against the interest of the banks.
2.     Government does not get any substantial amount as revenue from this source.
3.     Most of the transactions do not fall in the purview of the registration and no stamp duty is paid.
(a) Only 1                     (b)  Only  2
(c)    Only 3
(d)    Both 1 and 2
(e)    All 1, 2 and 3
44.      Credit/Debit card business in India has completed fairly enough time. Still it has not taken that height which was taken that height which was expected’. Which of the following may be reason(s) for the same ?
1.     Shops/Establishments prefer to accept cash in place of cards.
2.     Shops/establishments are cost conscious as the installation and transaction costs are very high.
3.     People prefer to travel with cash instead of cards as they are not a safe way of payments.
(a)   Only 1                    (b)  Only  2
(c)    Only 3
(d)    Both 1 and 2
(e)    All 1, 2 and 3
45.      The Monetary and Credit Policy is announced by which of the following?
(a)    Ministry of Finance in Centre
(b)    Reserve Bank of India
(c)    State Bank of India
(d)  Planning Commission of India
(e)  None of these
46.      The President of India is elected for a term of-
(a)  Four years
(b)  Five years
(c)  Six years
(d)  Seven years
(e)   Till he completes 75 years of age
47.      Which of the following is not an employment generating scheme?
(a)   Sampoorna Gramin Rozgar Yojana
(b)   National Rural Employment Guarantee Scheme
(c)   Swarnjayanti Shahari Rozgar Yojana
(d)  Kutir Jyoti Yojana
(e)  AII are not employment generating schemes
48.      Which of the following is the full form of G in.‘G-Sec the term we see every then and now in banking/ finance related operations ?
(a) Good                       (b)   Global
(c)  Guaranteed
(d)  Government
(e)  None of these
49.      Uranium is used for the generation of/production of
(a) Power                      (b)    Cement
(c) Iron and Steel (d)            Paper
(e)     None of these
50.      Which of the following is not associated with cricket ?
(a) LBW                        (b)    Love
(c)     Swing                    (d)    Hook

(e)     Googly

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