MULTIPLE CHOICE QUESTIONS ON BANKING, FINANCE AND ECONOMY

Test Paper- 6

1. Corporate Governance norms, popularly known as Clause 49 norms, are

imposed by (a) RBI (b) IRDA (c) SEBI (d) TRAI 2. Who is the Deputy Chairman of the Planning Commission? (a) Dr. Y.V.Reddy (b) Pranob Mukherji (c) Montek Singh Ahluwalia (d) Surjit Singh Barna 3. The Eleventh Five Year Plan period is (a) 2001-05 (b) 2002-07 (c) 2007-12 (d) 2006-11 4. The committee, appointed by the plan panel, to look into the financial sector

reforms is headed by (a) Raghuram G. Rajan (b) Montek Singh Ahluwalia (d) Dr. Rangarajan (d) Rakesh Mohan 5. The average growth rate of GDP during the 10th Plan is (a) 9.4% (b) 8% (c) 7.6% (d) 6.7% 6. The growth rate of GDP for the financial year 2006-07 is (a) 8.4% (b) 9.1% (c) 9.4% (d) 9.3% 7. The nuclear powers share of the world energy market is (a) 10% (b) 12% (c) 14% (d) 16% 8. By the market capitalisation, which is the biggest bank in the world now? (a) Citigroup(US) (b) Industrial & Commercial Bank of China (c) HSBC (d) SBI 9. What is the CRR at present (w.e.f. 4.8.2007) (a) 6.5% (b) 6% (c) 7% (d) 7.5% 10. The LAF provided by RBI is available to the Banks (Liquidity Adjustment

Facility) (a) daily (b) weekly (c) fort-nightly (d) monthly

11. What rates are applied in LAF (a) Bank Rate (b) Call Money Market Rate (c) Repo Rate (d) Repo & Reverse Repo Rates 12. What is the Bank Rate at present(12.9.07)? (a) 6% (b) 7% (c) 6.5% (d) 7.5% 13. At present (12.9.07) the Repo and Reverse Repo rates are (a) 6% & 7.75% (b) 7.75% & 6% (c) 6% & 7.5% (d) 7.5% & 6% 14. Percentage of credit availed by the rural people from non-institutional sources

at present is:- (a) 50% (b) 70% (c) 65% (d) 75% 15. Vishing is a fraudulent act which means (a) sending fake e-mails (b) sending fake SMS (c) sending wishes thro e-mails (d) sending wishes thro SMS 16. Micro Finance Institutions are being regulated by (a) RBI (b) SBI (c) NABARD (d) SEBI 17. We should not insist for no-dues certificate from the small and marginal

farmers, share croppers and others upto a loan limit of (a) Rs.25,000/- (b) Rs.1 lac (c) Rs.10,000/- (d) Rs.50,000/- 18. How many clearings are there for NEFT at present? (a) 4 (b) 3 (c) 5 (d) 2 19. Chairman for the Indian Banks Association (IBA) for the year 2007-08 is (a) OP Bhatt (b) TS Narayanasami (c) MBN Rao (d) YV Reddy 20. Banks have been permitted to offer preferential rate of interest on bulk

deposits of above (a) Rs.1 crore (b) Rs.50 lacs (c) Rs.15 lacs (d) Rs.25 lacs 21. The Grameena Bank Model of micro-finance institution was originally

developed in (a) India (b) China (c) Sri Lanka (d) Bangladesh

22. Now, the Banks are required not to finance the purchase of (a) KVPs (b) NSCs (c) IVPs (d) Shares 23. Which of the following is an affiliate of the IBRD (World Bank)? (a) IMF (b) IDA (c) UNDP (d) UNICEF 24. The president of World Bank is (a) Robert Conable (b) Robert Zoellick (c) Gaston Thon (d) Michael Camdessus 25. The World Bank was started in the year (a) 1945 (b) 1947 (c) 1943 (d) 1949 26. Bank for International Settlements (BIS) is established at (a) London (b) Paris (c) New York (d) Basle 27. Big Board is the nick name of (a) BSE (b) NASDAQ (c) NYSE (d) NSE 28. At present the rate of dividend distribution tax is (a) 12.5% (b) 15% (c) 22.5% (d) 10% 29. Which of the following sectors has spent the highest on Information

Technology in the year 2006? (a) Banking (b) Automobile (c) Insurance (d) Pharmaceutical 30. Under NREGS, the rural poor are guaranteed with atleast ______employment

in a year (a) 50 days (b) 75 days (c) 100 days (d) 200 days 31. In 2006, the growth rate of global economy is (a) 5.1% (b) 5.2% (c) 5.4% (d) 5.5% 32. One of these PSUs is not having the Navratna Status:- (a) BEL (b) HAL (c) PFC (d) BEML

33. The new base year of Central Statistical Organisation, which calculates the various economic indicators of the country is:-

(a) 2003-04 (b) 1999-2000 (c) 2001-02 (d) 2002-03 34. The target annual average growth in the 11th five year plan is projected at (a) 9% (b) 7% (c) 8% (d) 10% 35. Which is the biggest Mutual Fund Company, in terms of assets? (a) Reliance MF (b) SBI MF (c) Pru ICICI MF (d) UTI MF 36. Recently, the Government has clarified that, the following identification

number has to be quoted for all financial transactions:- (a) MIN (b) PAN (c) Voter ID No. (d) Mobile No. 37. One of the following State has the lowest per capita income :- (a) Rajasthan (b) Bihar (c) Orissa (d) Arunachal Pradesh 38. MCA-21 is a major initiative taken by the Government of India in which one of

the following areas (a) to set of SEZs (b) to improve e-governance (c) to modernise National Highways (d) to increase FDI 39. Per capita income for the year 2006-07 in India is (a) Rs.20,483 (b) Rs.21,483 (c) Rs.22,2483 (d) Rs.23,483 40. Industrial growth rate for the year 2006-07 (revised estimates) is (a) 8.9% (b) 9.9% (c) 10.9% (d) 11.9% 41. Manufacturing sector growth rate for the year 2006-07 (revised estimates) is (a) 7.0% (b) 12.3% (c) 9.4% (d) 14% 42. Service Sector, has grown at the following rate (revised estimates) for the

year 2006-07 (a) 7% (b) 8% (c) 11% (d) 12% 43. The growth rate of the Agricultural Sector for the year 2006-07 (revised

estimates) is:- (a) 1.7% (b) 2.7% (c) 3.7% (d) 4.7%

44. IPTV means (a) Interactive Protocol Television Service (b) Internet Protocol Television Service (c) Internationally Provided Television Service (d) None of the above

45. The ratio of life insurance premium to Indias GDP is around (a) 3% (b) 4% (c) 5% (d) 6% 46. Life Insurance Corporation of Indias market share in Life Insurance business

is (a) 50% (b) 60% (c) 70% (d) 75% 47. At present, foreign holding in Insurance Companies in India is limited to (a) 50% (b) 26% (c) 74% (d) 24% 48. Most of the Life Insurance business is done through (a) Agents (b) Brokers (c) Companies themselves (d) Corporate Agents 49. The previous name of Axis Bank is (a) GT Bank (b) UTI Bank (c) American Express (d)UCO Bank 50. The Social Security Bill 2007 does not include one of the following:- (a) Maintenance of Pension Fund (b) Aam Admi Bima Yojana (c) National Old Age Pension Scheme (d) Health Insurance Scheme 51. The apex Drugs Regulatory Authority, in India is called (a) DGFT (b) DCGI (c) DCI (d) None of these 52.For the year 2006-07, the biggest tax resource to Central Government is (a) Income Tax (b)Customs Duty (c) Excise Duty (d)Corporation Tax 53.At present, the mandatory percentage of ethanol to be mixed with petrol, is (a) 1% (b) 3% (c) 10% (d) 5% 54. What is the proposed percentage of ethanol to be mixed with petrol by 1.4.2008? (a) 5% (b) 8% (c) 10% (d) 12%

55. Per capita gold consumption in India is (a) 1 gm (b) 0.7gm (c) 2 gm (d) 10gm 56. The largest importer of gold at present is (a) Japan (b) USA (c) China (d) India 57. There is a proposal to merge one of these associate banks with SBI (a) SBS (b) SBM (c) SBT (d) SBH 58. One of the following is the smallest of the seven Associate Banks of SBI (a) SBT (b) SBS (c) SBM (d) SBH 59. The percentage stake of SBI in State Bank of Saurashtra is (a) 75% (b) 51% (c) 59.7% (d) 100% 60. Percentage of total lendings of PSBs to Small Scale Industries, for the year 2005-

06 is:- (a) 7.5% (b) 8.5% (c) 9.5% (d) 14% 61. Approximate percentage of priority sector lendings by All Schedule Commercial

Banks, for the year 2005-06 is:- (a) 34% (b) 40% (c) 35% (d) 39% 62. One of the following business group is the largest tax payer for the year 2006-07

in the country:- (a) Tatas (b) Birlas (c) Reliance (d) Bharti Airtel 63. The name of the merged Airline of Air India and Indian Airlines is:- (a) Air India (b) Indian (c) Go-Air (d) Air India Express 64. The low cost arm of Air India is called:- (a) Air India (b) Indian (c) Go-Air (d) Air India Express 65. National Aviation Company of India Limited is the merged companys name of (a) Air India & Indian Airlines (b) Jet Air & Air Sahara (c) Kingfisher & Deccan Air (d) None of the above

66. For the year 2006-07, the trade deficit for India is:- (a) $64 bn (b) $46 bn (c) $ 50 bn (d) $60 bn 67. For the year 2006-07, the aggregate Inward remittances by the Indian workers,

working abroad is (a) $30.8 bn (b) $27.8bn (c) $29.8bn (d) $28.8 bn 68. For the year 2006-07, the current account deficit for India is:- (a) $9 bn (b) $10 bn (c) $11 bn (d) $8 bn 69. For the year 2006-07, the capital account surplus for India is :- (a) $40 bn (b) $42 bn (c) $45 bn (d) $47 bn 70. Impossible trinity is mainly connected with the (a) monetary policy(b) fiscal policy (c) economic policy (d) Industrial policy 71. One of these is not included in the Impossible Trinity of a Central Bank (a) Achieving GDP Growth (b) Achieving stable forex rates (c) Achieving Interest Rate autonomy (d) Regulating Financial Institutions 72. Safety Net facility means

(a) facility to safe keep the securities with Bank (b) commitment to buy the IPO shares at pre-determined rates after allotment (c) safety provided by IT Department for Tax Payers (d) safety provided by police to the citizens

73. As per the RBIs clean note policy, writing on a currency note is (a) a crime (b) an offence (c) a punishable offence (d) none of these 74. ASCBs (excluding RRBs) shall have to maintain a minimum of ____% of average

fortnightly CRR on each day of the fortnight. (a) 50% (b) 60% (c) 70% (d) 80% 75. What is the floor rate of CRR below which, RBI cannot reduce? (a) 3% (b) 5% (c) 0% (d) None of these

KEY

Q A Q A Q A Q A Q A Q A Q A Q A Q A Q A 1 c 2 c 3 c 4 a 5 c 6 c 7 d 8 b 9 c 10 a 11 d 12 a 13 b 14 b 15 b 16 c 17 d 18 a 19 c 20 c 21 d 22 a 23 b 24 b 25 a 26 d 27 c 28 b 29 a 30 c 31 c 32 d 33 b 34 a 35 c 36 b 37 b 38 b 39 c 40 c 41 b 42 c 43 b 44 b 45 b 46 c 47 b 48 a 49 b 50 a 51 b 52 d 53 d 54 c 55 b 56 d 57 a 58 b 59 d 60 b 61 c 62 a 63 a 64 d 65 a 66 a 67 d 68 a 69 c 70 a 71 d 72 b 73 c 74 c 75 c