financialawareness4.docx

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Model Paper 4 (Banking/Financial General Awareness) for BankExam

1. For which one of the following reasons Finance Minister denied entry of NRI fundsfor infra bonds ?(A) It will bring in more liquidity in the country(B) NRIs can withdraw their funds any time(C) It will bring interest burden on the country(D) It could lead to losses at the time of redemption because of fluctuations in theIndian Currency(E) None of these

Ans : (B)

2. What is financial inclusion ?1. Easy access to bank accounts for safe parking of savings2. Availability of cheap credits through appropriately designed loans for poor and lowincome households and small entrepreneurs3. Availability of basic financial products like insurance(A) Only 1(B) Only 2(C) Only 3(D) Both 1 and 2

(E) All 1, 2 and 3Ans : (B)

3. According to the Securities and Insurance Laws (Amendment) Bill 2010, whoamongst the following will be Vice-Chairman of joint commission to resolve differencesamongst the financial regulators ?(A) Finance Minsiter, GOI(B) Deputy Chairman, Planning Commission(C) SEBI Chairman(D) Chairman, Central Vigilance Commission

(E) RBI, GovernorAns : (E)

4. Which of the following terms is used in Economics ?(A) Keynesian(B) Adsorption(C) Affinity Matrix


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(D) Gene Flow(E) None of these

Ans : (A)

5. Which one of the following is the directive given to the Govt. of India in theFinancial Stability Report submitted to it ?(A) Focus on financial consistency(B) To reduce fiscal deficit(C) To ensure GDP growth(D) To reduce revenue deficit(E) None of these

Ans : (B)

6. In which one of the following States, Jangi-Thopon and Thopon-Powari Power

Projects are proposed to be set up ?(A) J & K(B) H. P.(C) U. P.(D) Manipur(E) Meghalaya

Ans : (B)

7. Which one of the following is the proposal under the Food Security Law ?(A) To provide 25 kg of food-grains to ration card holders

(B) To provide 25 kg of food-grains to targeted beneficiaries(C) To provide 35 kg of food-grains to ration card holders(D) To provide 35 kg of food-grains to targeted beneficiaries(E) None of these

Ans : (C)

8. Which one of the following are key policy rates used by RBI to influence interestrates ?1. Bank Rate/the Repo Rate2. Reverse Repo Rate

3. CRR/SLR(A) Only 1(B) Only 2(C) All 1, 2 and 3(D) Only 3(E) Both 1 and 3

Ans : (C)


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9. For giving cooking gas connection to poor families, which of the following one timesubvention (in rupees) will be provided by the Planning Commission ?(A) 500(B) 600(C) 750(D) 1000(E) 1400

Ans : (E)

10. Which one of the following rates signal the RBIs long term out-look on interestrates ?(A) Repo Rate(B) Reverse Repo Rate

(C) Bank Rate(D) SLR(E) CRR

Ans : (C)

11. What do you understand by Para Banking services ?(A) Eligible financial services rendered by banks(B) Utility services provided by banks(C) Services provided through business correspondents(D) Services provided to armed force personnel

(E) None of theseAns : (C)

12. For which one of the following reasons, the Steel Ministry wants complete ban onexport of iron ore from India ?(A) The price of iron ore exports is not competitive(B) The iron ore exports do not provide any value addition to exports(C) The prices of iron ore are high and as such the exports of the ore should bebanned(D) Iron ore is a non-renewable resource like coal and petroleum products, hence it

should be preserved(E) None of these

Ans : (D)

13. What is a cross Border Exchange ?(A) Trading of foreign currency in India(B) Trading of Indian rupee in exchange of other currencies/ goods


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(C) Hawala transactions in Indian Rupee(D) Unauthorized remittance of Indian Rupee(E) None of these

Ans : (A)

14. What is Cartosat-2B ?(A) It is an advanced remote sensing statellite built by ISRO(B) It is a warhead developed by DRDO(C) It is an educational project launched by UGC(D) It is an advanced computer developed by IIT Kanpur(E) None of these

Ans : (A)

15. For which one of the following reasons RBI has decided to undertake mid-quarter

policy reviews ?1. To realign its policies2. To take steps and ensure smooth flow of credit3. To provide guidance to the economy(A) Only 1(B) Only 2(C) Only 3(D) All 1, 2 and 3(E) None of these

Ans : (D)

16. Which one of the following is the objective of Financial Stability and DevelopmentCouncil ?(A) To address inter-regulatory issues only(B) To focus on financial literacy only(C) To focus on financial inclusion only(D) Only (A) and (B)(E) All (A) , (B) and (C)

Ans : (C)

17. For which one of the following reasons has the Planning Com-mission decided toconvert itself into a system Reforms Commission ?(A) It is to make people to people contact(B) It is to understand the problems of people(C) It is to review the implementation of its policies(D) It is aimed at changing economic profile of the country(E) None of these


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Ans : (A)

18. Which one of the following sectors in India has attracted highest amount ofForeign Direct Investment during 2009-10 ?(A) Manufacturing(B) Construction(C) Wholesale and Retail Trade(D) Financial Insurance, Real Estate(E) Civil Aviation

Ans : (B)

19. Which of the following is/are a renewable source of energy ?1. Wind2.Solar

3. Thermal(A) Only 1(B) Only 2(C) All 1, 2 and 3(D) Only 2 and 3(E) Only 1 and 2

Ans : (E)

20. Expand the term SWIFT(A) Society for Worldwide Inter-national Financial Telecommunications

(B) Society for Worldwide Inter-bank Financial Telecommunications(C) Society for Worldwide Inter-national Financial Transfers(D) Society for Worldwide Inter-bank Fiscal Transactions(E) None of these

Ans : (B)

21. For which one of the following reasons. NABARD has set up joint liability groups(JLG) of farmers ?(A) To facilitate delivery of credit to farmers(B) To facilitate better delivery of credit to farmers through informal sources

(C) To facilitate better delivery of credit to share croppers and those who do not havetheir own land(D) To facilitate better delivery of credit to farmers through Panchayats(E) None of these

Ans : (A)

22. Which of the following terms is not used in Banking World ?


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(A) Holding Company(B) Post dated cheque(C) Credit(D) Time deposit(E) Centripetal force

Ans : (E)

23. What is the extent of claim that can be entertained by a Lok Adalat ?(A) Up to lakhs(B) Up to 10 lakhs(C) Up to 20 lakhs(D) Up to 50 lakhs(E) No limit

Ans : (A)

24. ASHA is a scheme for providing which of the following services to the people inIndia ?(A) Health Service(B) Clean water(C) Primary Education(D) Employment for 100 days(E) None of these

Ans : (A)

25. Some private organizations are running e-choupals, to help which of the followingsection of society ?(A) Farmers(B) Small businessman(C) Cooperative Credit Societies(D) School-going children(E) Unemployed youth

Ans : (A)

26. Which is the currency of U.A.E. ?

(A) Dirham(B) Dinar(C) Dollar(D) Taka(E) Pound Sterling

Ans : (A)


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27. Who amongst the following is the author of the book A bend in the River ?(A) Chetan Bhagat(B) V. S. Naipaul(C) Kiran Desai(D) Anita Desai(E) None of these

Ans : (B)

28. Which of the following terms is used in game of Cricket ?(A) Love(B) Scoop(C) LBW(D) Tee(E) Back-hand drive

Ans : (C)

29. Which one of the following was Indias per cent GDP growth during 2009-10 ?(A) 67(B) 92(C) 74(D) 97(E) None of these

Ans : (C)

30. Which one of the following countries in Europe is facing financial crisis ?(A) Ireland(B) Portugal(C) Rumania(D) Hungary(E) France

Ans : (D)

31. Which of the following schemes is launched for school children ?(A) Rajlakshmi

(B) Kutir Jyoti(C) Mid Day Meal(D) Swajal Dhara(E) None of these

Ans : (C)

32. Loans of small or very small amounts given to low income group people are known


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as(A) Investment Loans(B) Micro Credit(C) Savings Loan(D) Secured Loans(E) Cash Credit Loans

Ans : (B)

33. Which of the following is the Central Bank of U.S.A. ?(A) Federation of Banks in U.S.A.(B) Citigroup U.S.A.(C) Bank of America(D) Central Bank of U.S.A.(E) Federal Reserve System

Ans : (E)

34. Which one of the following countries was second biggest net importer of goodsand services in the year 2009 ?(A) U.S.A.(B) India(C) China(D) Germany(E) Russia

Ans : (B)

35. The activity of purchasing shares of various companies is called(A) On-line Trading(B) Share Trading(C) Real estate investment(D) Corporate Trading(E) None of these

Ans : (C)

36. Trade Ministers of Key WTO member countries including India held a meeting at

Davos in Switzerland on January 29, 2011.Which one of the following was the purpose of this meeting ?(A) Negotiations for free trade(B) Negotiations to abolish Restrictive Trade Practices(C) Issues relating to agricultural subsidies(D) Negotiations for a global trade deal(E) To include Pakistan and Iran as members


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Ans : (D)

37. Which one of the following advices has/have been given by leading Economists toFinance Minister during their pre-budget meeting with him ?1. To take measures to boost farm productivity only.2. To improve supply of agricultural products only.3. To reduce the fiscal deficit only.(A) Only 1(B) Only 2(C) Only 3(D) All 1, 2 and 3(E) Only 1 and 2

Ans : (D)

38. As per recent newspaper reports, which one of the following countries has signedhighest number of deals to get global project finance ?(A) Australia(B) USA(C) Saudi Arabia(D) Spain(E) India

Ans : (E)

39. Which of the following terms is used in Banking Field ?(A) Interest Rate Swap(B) Input Devices(C) Sedimentary(D) Zero Hour(E) Privilege Motion

Ans : (A)

40. To which of the following States has the Asian Development Bank given a loan of$ 90 m for development of Power projects ?

(A) Himachal Pradesh(B) West Bengal(C) Tripura(D) Arunachal Pradesh(E) Assam

Ans : (E)


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41. On which one of the following issues can SEBI penalize any company in India ?1. Violation of Banking Regulation Act.2. Violation of foreign portfolio investment guidelines.3. For violation of Negotiable Instrument Act.(A) Only 1(B) All 1, 2 and 3(C) Only 1 and 2(D) Only 2 and 3(E) Only 2

Ans : (E)

42. In the opinion of the Governor of Reserve Bank of India, which one of thefollowing is the reason owing to which Indias inflation is accelerating ?(A) Excess liquidity in market

(B) Speculation in essential goods(C) Higher food cost(D) Commodities futures(E) None of these

Ans : (A)

43. In opinion of the RBI, which one of the following is/are a threat to the smoothfunctioning of Indian Companies ?1. Rising input costs.2. High interest rates.

3. Inflation only.(A) Only 1(B) Only 2(C) Only 1 and 2(D) Only 3(E) All 1, 2 and 3

Ans : (E)

44. For which one of the following reasons Government of India has decided to waiveoff upfront payment of Rs. 1,400 to be made by each customer located in rural areas

to get LPG connection ?1. To help villagers to use LPG in place of firewood/kerosene.2. To help villagers to save kerosene for agricultural activities.3. To lure villagers to use LPG which is of substandard quality and not fit for industrialuse.(A) Only 1(B) Only 2


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(C) Only 3(D) Only 1 and 2(E) Only 2 and 3

Ans : (A)

45. Expand the term ALM as used in Banking/Finance sector ?(A) Asset Liability Mismatch(B) Asset Liability Maturity(C) Asset Liability Management(D) Asset Liability Manpower(E) None of these

Ans : (C)

46. Who amongst the following is the author of the book Half a Life ?

(A) Mark Tully(B) Deepak Chopra(C) Chetan Bhagat(D) Ved Mehta(E) V. S. Naipaul

Ans : (E)

47. In which one of the following states, village level marketing platform has been setup for the first time in the country ?(A) Haryana

(B) Maharashtra(C) Gujarat(D) Bihar(E) Kerala

Ans : (C)

48. The RBI has asked banks to spell out their policy, procedures and size of thebusiness on which of the following aspects of banking ?(A) On-shore banking(B) Off-shore banking

(C) Investments in secondary market(D) Wealth management(E) None of these

Ans : (D)

49. Which of the following organizations has given a US $ 172 billion loan to India tobuild roads in rural areas ?


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(A) Asian Development Bank(B) International Monetary Fund(C) Bill Gates Foundation USA(D) World Bank(E) None of these

Ans : (D)

50. Which one of the following advices has been given by Finance Minister PranabMukherjee to Chartered Accounts ?(A) They must highlight the credit risks(B) They must highlight the operational risks(C) They must bring to the notice of Government tax evasions(D) They must be vigilant against window dressing of companies(E) None of these

Ans : (E)

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