SBI Associate & CWE Po- Economics-three
ECONOMICS - THREE
1. Which of the following is the Regulator of the credit rating agencies in India ?
(A) RBI
(B) SBI
(C) SIDBI
(D) SEBI
(E) None of these
2. When more than one banks are allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as—
(A) Participation
(B) Consortium
(C) Syndication
(D) Multiple banking
(E) None of these
3. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy means —
(A) Sale or purchase of Govt. securities
(B) Issuance of different types of bonds
(C) Auction of gold
(D) To make available direct finance to borrowers
(E) None of these
4. The bank rate means—
(A) Rate of interest charged by commercial banks from borrowers
(B) Rate of interest at which commercial banks discounted bills of their borrowers
(C) Rate of interest allowed by commercial banks on their deposits
(D) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
(E) None of these
5. What is an Indian Depository Receipt ?
(A) A deposit account with a Public Sector Bank
(B) A depository account with any of Depositories in India
(C) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(D) An instrument in the form of deposit receipt issued by Indian depositories
(E) None of these
6. An instrument that derives its value from a specified underlying (currency, gold, stocks etc.) is known as—
(A) Derivative
(B) Securitisation Receipts
(C) Hedge Fund
(D) Factoring
(E) Venture Capital Funding
7. Fiscal deficit is—
(A) total income less Govt. borrowing
(B) total payments less total receipts
(C) total payments less capital receipts
(D) total expenditure less total receipts excluding
borrowing
(E) None of these
8. In the Capital Market, the term arbitrage is used with reference to—
(A) purchase of securities to cover the sale
(B) sale of securities to reduce the loss on purchase
(C) simultaneous purchase and sale of securities to make
profits from price
(D) variation in different markets
(E) Any of the above
9. Reverse repo means—
(A) Injecting liquidity by the Central Bank of a country through purchase of Govt. securities
(B) Absorption of liquidity from the market by sale of Govt. securities
(C) Balancing liquidity with a view to enhancing economic growth rate
(D) Improving the position of availability of the securities in the market
(E) Any of the above
10. The stance of RBI monetary policy is—
(A) inflation control with adequate liquidity for growth
(B) improving credit quality of the Banks
(C) strengthening credit delivery mechanism
(D) supporting investment demand in the economy
(E) Any of the above
11. Currency Swap is an instrument to manage—
(A) Currency risk
(B) interest rate risk
(C) currency and interest rate risk
(D) cash flows in different currencies
(E) All of the above
12. ‘Sub-prime’ refers to—
(A) lending done by banks at rates below PLR
(B) funds raised by the banks at sub-Libor rates
(C) Group of banks which are not rated as prime banks as per Banker’s Almanac
(D) lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
(E) All of the above
13. Euro Bond is an instrument—
(A) issued in the European market
(B) issued in Euro Currency
(C) issued in a country other than the country of the currency of the Bond
(D) All of the above
(E) None of these
14. Money Laundering normally involves—
(A) placement of funds
(B) layering of funds
(C) integration of funds
(D) All of (A), (B) and (C)
(E) None of (A), (B) and (C)
15. The IMF and the World Bank were conceived as institutions to—
(A) strengthen international economic co-operation and to help create a more stable and prosperous global economy
(B) IMF promotes international monetary cooperation
(C) The World Bank promotes long term economic development and poverty reduction
(D) All of (A), (B) and (C)
(E) None of (A), (B) and (C)
16. Capital Market Regulator is—
(A) RBI
(B) IRDA
(C) NSE
(D) BSE
(E) SEBI
17. In the term BRIC, R stands for—
(A) Romania
(B) Rajithan
(C) Russia
(D) Regulation
(E) None of these
18. FDI refers to—
(A) Fixed Deposit Interest
(B) Fixed Deposit Investment
(C) Foreign Direct Investment
(D) Future Derivative Investment
(E) None of these
19. What is Call Money ?
(A) Money borrowed or lent for a day or over night
(B) Money borrowed for more than one day but upto 3 days
(C) Money borrowed for more than one day but upto 7 days
(D) Money borrowed for more than one day but upto 14 days
(E) None of these
20. Which is the first Indian company to be listed in
NASDAQ ?
(A) Reliance
(B) TCS
(C) HCL
(D) Infosys
(E) None of these
21. RBI’s open market operation transactions are carried out with a view to regulate—
(A) Liquidity in the economy
(B) Prices of essential commodities
(C) Inflation
(D) Borrowing power of the banks
(E) All the above
22. Consider the following statements about Annual Supplement to Foreign Trade Policy 2009-2014:
a) Benefits Under Market Linked Focus Product Scheme to garment exports to EU extended from October 2010 to March 2011.
b) List of items allowed for duty free import of gems and jewellery sector expanded.
c) Leather sector allowed to re-export of unsold imported raw hides and skins and semi-finished leather from public bonded warehouses, without export duty.
Which of the above statements are true?
A) Only (a) B) Only (b) C) Only (c) D) All the above E)None of these.
23. The first two leading countries as per the statistics of 2009 in natural rubber’s consumption in the world are ________.
a) China and Indian respectively b) China and Brazil respectively
c) China and USA respectively d) USA and India respectively E) None of these.
24. Government has issued an ordinance announcing ULIP as ‘Insurance Product’. The regulations of ULIPs will now be done by _________.
a) IRDA Only b) NABARD Only c) SEBI Only d) SBI Only e) None of these
25. Indian rupee has got its symbol as . This symbol has been designed by _______.
a) P. Kiran Kumar b) D.Udai Kumar c) Chandan Prakash Singh
d) D.Vikram Rao e) None of these
26. The government has approved of 10% stake disinvestment in two public sector units. One of them is coal India, which is the other one.
a) Hindustan Zinc Ltd. b) Hindustan Copper Ltd.
- Hindustan Iron Ltd. d) Hindustan Aluminum Ltd. e) None of these.
27. Lot of Banks in India these days are offering M-Banking Facility to their customers. What is the full form of ‘M’ in ‘M-Banking’ ?
(A) Money
(B) Marginal
(C) Message
(D) Mutual Fund
(E) Mobile Phone
28. Sampurna Gramin Rozgar Yojana has been launched from
a) 1 Apr 2001 b) 25 Sep 2001 c) 30 Sep 2001
d) No scheme of such title has yet been launched e) None of these
29. Which of the following is not the part of the structure of the Financial System in India ?
(A) Industrial Finance
(B) Agricultural Finance
(C) Government Finance
(D) Development Finance
(E) Personal Finance
30. Which of the following is not the part of the scheduled banking structure in India ?
(A) Money Lenders
(B) Public Sector Banks
(C) Private Sector Banks
(D) Regional Rural Banks
(E) State Co-operative Banks
31. As we all know Govt. of India collects tax revenue on various activities in the country. Which of the following is a part of the tax revenue of the Govt. ?
(i) Tax on Income
(ii) Tax on Expenditure
(iii) Tax on Property or Capital Asset
(iv) Tax on Goods and Services
(A) Both (i) and (iii) only
(B) Both (ii) and (iv) only
(C) All (i), (ii), (iii) and (iv)
(D) Only (ii), (iii) and (iv)
(E) None of these
32. We very frequently read about Special Economic Zones (SEZs) in newspapers. These SEZs were established with which of the following objectives ?
(i) To attract foreign investment directly.
(ii) To protect domestic market from direct competition
from multinationals.
(iii) To provide more capital to agricultural and allied
activities.
(A) Only (i)
(B) Only (ii)
(C) Only (iii)
(D) All (i), (ii) and (iii)
(E) None of these
33. According to FICCI study, India has managed to be the 7th largest producer of vehicles. The share of India in global automobile exports is a meager 1% in 2009 and ranks __________ in the world.
a) 15th b) 20th c) 22nd d) 25th e) None of these.
34. The luxury car maker BMW Group has launched BMF Financial Services as a new business entity in India. From which country the company belongs to?
a) France b) Italy c) USA d) Germany e) None of these.
35. Many times we read about Future Trading in newspapers. What is ‘Future Trading’ ?
(i) It is nothing but a trade between any two stock exchanges wherein it is decided to purchase the stocks of each other on a fixed price throughout the year.
(ii) It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price.
(iii) It is an agreement between stock exchanges that they will not trade the stocks of each other under any circumstances in future or for
a given period of time.
(A) Only (i)
(B) Only (ii)
(C) Only (iii)
(D) All (i), (ii) and (iii)
(E) None of these
36. Inflation in India is measured on which of the following indexes/indicators ?
(A) Cost of Living Index (COLI)
(B) Consumer Price Index (CPI)
(C) Gross Domestic Product
(D) Wholesale Price Index (WPI)
(E) None of these
37. Recently India signed a Tax Information Exchange Agreement with
a) USA b) Japan c) Bermuda d) Canada e) None of these
38. According to the Credit Suisse Global Wealth Report, the total wealth in India has tripled in the past decade to $ 3.5 trillion. India’s wealth may rise by 83% to $ 6.4 trillion by
a) 2014 b) 2015 c) 2020 d) 2025 e) None of these.
39. Which of the following is true about Swavalamban Scheme?
A) Finance minister Pranab Mukherjee will launch the Swavalamban scheme in Murshidabad district of West Bengal.
B) As per the scheme, the Centre will contribute Rs.1,000 a year to each New Pension Scheme (NPS) account opened in the current year.
C) The contribution will be made till 2013 – 14.
D) To be eligible, a person will have to make a minimum contribution of Rs.1,000 and maximum contribution of Rs.12,000 per annum.
a) Only A,B & C b) Only A, C & D c) Only A & D d) All the above
e) None of these
40. A report on the state of good insecurity in urban India jointly prepared by the MS Swaminathan Research foundation and the United Nations World Food Programme has noted that the three states that witnessed a spate of farmer suicides were also states where urban food insecurity had worsened between 1998-2000 and 2004-06. Name these states.
a) Maharashtra, Karnataka and Andhra
b) Chhattisgarh, Karnataka and Andhra
c) Madhya Pradesh, Bihar and Orissa d) Maharashtra, Bihar and Orissa
e) None of these
41. India has signed initial agreements for laying a pipeline to wheel gas from _________ though Afghanistan and Pakistan but it is unlikely that the project will get off the ground anytime soon due to lack of stable political equations among the three south Asian countries.
a) Tajikistan b) Kazakhstan c) Turkmenistan d) Uzbekistan
e) None of these
42. The share of government (the main borrower from bilateral and multilateral sources) in India’s total external debt has reduced significantly to ___________in March 2010 from 60% in 1990. The composition of the central government’s public debt reveals that about 89% of the sovereign debt is from domestic sources and external debt accounts for just 11%, most of which is from multilateral sources. Besides, banks and insurance companies account for a sizeable share of the total domestic debt.
a) 26% b) 21% c) 16% d) 11% e) None of these
43. Who has been appointed head of the newly constituted National Innovation Council (NIC)?
a) Sam Pitroda b) K Kasturirangan c) APJ Abdul Kalam
d) C Rangarajan e) None of these
44. Which committee recommended abolition of tax rebates under Section 88?
a) Chelliah Committee b) Kelkar Committee c) Shome Committee
d) Naresh Chandra Committee e) None of these
45. Tarapore Committee submitted its report on “Full Convertibility on Rupee” in
a) Current account b) Capital account
c) Both on current as well as on capital account
- Special Drawing Rights (SDRs) e) None of these
46. CENVAT is related to
a) Sales Tax b) Excise Duty c) Custom Duty d) Service Tax
e) None of these
47. In Rashtriya Madhyamik Shiksha Abhiyan (RMSA) Scheme, government has targeted to ensure universal access to secondary level education by the year.
a) 2012 b) 2015 c) 2017 d) 2020 e) None of these
48. Which of the following schemes is not a social development Scheme ?
(A) Indira Awas Yojana
(B) Mid Day Meal
(C) Bharat Nirman Yojana
(D) Sarva Shiksha Abhiyan
(E) All are social schemes
49. Which statement is correct for the Planning Commission of India?
a) It is not defined in the Indian Constitution
b) Members and Vice – Chairman of it do not have a fixed working duration
c) Members do not require any minimum education d) All of these
e) None of these
50. NABARD was established on the recommendation of
a) Public Accounts Committee b) Shivaraman Committee
c) Narasimham Committee d) Khandelwal Committee e) None of these
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Answers :
1. (D) 2. (B) 3. (A) 4. (D) 5. (C) 6. (C) 7. (D) 8. (C) 9.(A) 10. (E)
11. (D) 12. (D) 13. (C) 14. (D) 15. (D) 16. (E) 17. (C) 18.(C) 19. (A) 20. (D)
21. (E) 22. (D) 23. (A) 24. (A) 25. (B) 26. (B) 27. (E) 28.(B) 29. (E) 30. (A)
31. (C) 32. (A) 33. (C) 34. (D) 35. (B) 36. (D) 37. (C) 38.(B) 39. (D) 40. (A)
- © 42(.A) 43. (A) 44. (B) 45. (B) 46. (D) 47. (C) 48.(C) 49. (D) 50. (B)
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