ECONOMIC DEVELOPMENTS Based Questions

1. A customer can approach banking ombudsman if he does not get satisfactory response to his

grievance from the bank within how many days?

A) 5

B) 20

C) 30

D) 40

E) None

2. National Civil Services Day in India is observed on-

A) April 23

B) April 24

C) April 18

D) April 21

E) None

3. CAG was in the news recently due to 2G spectrum scam. It stands for

A) Commissioner and Auditor General

B) Comptroller and Auditor General

C) Chief Auditor General

D) Chairman and Auditor General

E) None of these

4. FPO stands for?

A) Follow-on public offer

B) First public offer

C) Free public offer

D) Frequent public offer

E) None of these

5. The structure of Basel II is based on how many pillars?

A) One

B) Two

C) Three

D) Four

E) None of these

6. The Monetary and Credit Policy is reviewed by RBI after a gap of

A) One month

B) Three months

C) Six months

D) One year

E) None of these

7. Hosni Mubarak is associated with which country?

A) Tunisia

B) Sudan

C) Libya

D) Syria

E) Egypt

8. Who has been appointed as the new chairman of the Securities Exchange Board of India

(SEBl)?

A) NK Sinha

B) Sushma Seth

C) Darshan Mehta

D) UK Sinha

E) None of these

9. Who has been appointed as the head of the reconstituted National Security Advisory Board

(NSAB)?

A) Shyam Saran

B) Anil Kakodkar

C) C Rajamohan

D) Naresh Chandra

E) None of these

10. What is India's position current FIFA rankings?

A) 120th

B) 132nd

C) 144th

D) 150th

E) None of these

11. What percentage of its total crude oil is imported by India?

A) 40%

B) 50%

C) 60%

D) 80%

E) None of these

12. In Global Gender Gap Report, India has been ranked at?

A) 97th

B) 107th

C) 112th

D) 122nd

E) None of these

13. At present, what is RBI's share in NABARD equity?

A) 100%

B) 74%

C) 51%

D) 1%

E) None of these

14. Who has been appointed as the first chief of the National Green Tribunal (NGT)?

A) Dhanendra Kumar

B) Lokeshwar Singh

C) SushmaNath

D) Sam Pitroda

E) None of these

15. India has finally woken up to the needs of the country's elderly. With the number of people in

the 60-plus age group in India expected to increase to 100 million in 2013 and to 198 million in

2030, the health minister is all set to roll out the?

A) National Programme for Health care for the Elderly

B) National Programme for Senior Citizens

C) National Programme for Old Aged

D) Rashtriya Vriddha Swasthya Yojana

E) None of these

16. In accordance with the Centre's policy to open more banks in rural areas, a target has been set

to open at least one bank branch in each of the 72,000 villages in the country by?

A) 2012

B) 2013

C) 2014

D) 2015

E) None of these

17. The number of Padma Vibhushan Awardees this year is?

A) 13

B) 15

C) 16

D) 17

E) None

18. The Indian music director who was nominated for Oscar Award this year is?

A) AR Rehman

B) Bappi Lahiri

C) Gulzar

D) Chakri

E) None of these

19. An IPO is?

A) Initial price offered by a private limited company to its shareholders

B) An offer by an unlisted company for sale of its shares for the first time to the public

C) Used to increase the share capital of an unlisted company

D) A book building process

E) None of these

20. Private equity investors, invest in a company based mainly on?

A) The age of the company

B) The location of the company

C) The activity undertaken by the company

D) The creditability and the valuation of the company

E) The existing profitability of the company

21. Deuce is a term used in?

a) Polo

b) Lawn tennis

c) Badminton

d) Boxing

e) Volley ball

A) a, b, c

B) b, c, d

C) c, d, a

D) a, b, e

E) b, c, e

22. ISI is the intelligence agency of?

A) United Kingdom

B) USA

C) Israel

D) Pakistan

E) India

23. In broad gauge, the distance between the rails is?

A) 1•00 metre

B) 3 metre

C) 1•67 metre

D) 2•67 metre

E) 0•76 metre

24. CNBC and TV18 TV Channels essentially broadcast?

A) English News

B) Classic English Movies

C) Political Events and News

D) Business and Economic News

E) All important national and international news in English

25. According to a recent newspaper survey, which one of the following is the most preferred

language for leisure reading among the Indian Youth ?

A) Hindi

B) Marathi

C) Bengali

D) Telugu

E) English

26. The RBI reviews its credit and monetary policy at regular inte-rvals and also in between.

What is the purpose of the same?

1) To ensure that inflation does not cross the limit

2) To ensure that banks have enough liquidity

3) To ensure that cost of the fund does not reach a very high level

A) Only 1

B) only 2

C) All, 1, 2 & 3

D) Only 2 and 3

E) None of these

27. The name of the white revolution is associated with?

A) J. V. Narlikar

B) J. C. Bose

C) Kurien Verghese

D) M. S. Swaminathan

E) C. Rangarajan

28. The cabinet committee recently approved the 'IGMSY' a scheme for the welfare of the people

of India. Who amongst the following will get the benefit of the scheme?

A) Pregnant, lactating women and infants

B) Children upto 12 years of age

C) Youth

D) Old and Senior Citizens

E) All the above

29. The Govt. of India provides direct financial support to which of the following schemes?

A) Jeevan Bharati Scheme

B) ULIP

C) Sampoorna Grameen RozgarYojana

D) Packing Credit Guarantee Scheme

E) All of the above

30. Who amongst the following is the author of the Book 'A Bend in the River' ?

A) V S. Naipaul

B) Arun Shourie

C) Octavia paz

D) Daniel Defoe

E) Walter Scott

31. Government recently set up a Ta-sk Force to plug fund wastage? The task force is headed

by?

A) Justice Sri Krishna

B) Nandan Nilekani

C) C. Rangrajan

D) Dr. Bimal Jalan

E) None of these

32. Which of the following countries recently decided to continue £ 28 million annual aid to

India ?

A) U.S.A.

B) U.K.

C) The Netherlands

D) France

E) None of these

33. India in February 2011 signed Free Trade Agreement with?

A) Japan

B) Indonesia

C) South Korea

D) Australia

E) None of these

34. India has signed Comprehensive Economic Cooperation Agreement with?

A) Indonesia

B) Vietnam

C) Malaysia

D) Saudi Arabia

E) None of these

35. Energy Giant BP PIC is a companyof?

A) UK

B) USA

C) UAE

D) Sudan

E) None of these

36. Jhalanath Khanal has been sworn in as the Prime Minister of?

A) Bhutan

B) Sri Lanka

C) Nepal

D) India

E) None of these

37. Who among the following has been honoured with the Fakhru-ddin Ali Ahmed Memorial

Award for National Integration 2008 ?

A) M. J. Akbar

B)Swami Agnivesh

C) Javed Akhtar

D) Digvijay Singh

E) None

Answers

1) C 2) D 3) B 4) A 5) C 6) B 7) E 8) D 9) D 10) C 11) D 12) C

13) D 14) B 15) A 16) A 17) A 18) A 19) B 20) E

21) E 22) D 23) C 24) D 25) E 26) C 27) C 28) A 29) C 30) A

31) B 32) B 33) A 34) C 35) A 36 ) C 37) B

Union Budget 2011-12 objective questions

1) Who presented the Union Budget 2011-12 in the Parliament on February 28, 2011?

a) Manmohan Singh b) Pratibha Devisingh Patil c) Hamid Ansari d) D.Subbarao e) Pranab

Mukherjee

2) The first Union budget of independent India was presented by?

a) R.K.Shanmukham Chetty b) Jawaharlal Nehru c) Morarji Desai d) Indira Gandhi e)

Manmohan Singh

3) Disinvestment Target for 2011-12 has been placed at?

a) Rs. 10000 crore b) Rs. 20000 crore c) Rs. 30000 crore d) Rs. 40000 crore e) None of these

4) Foreign Institutional Investor-(FII) limit for investment in Indian corporate bonds raised from

$20 billion to?

a) $30 billion b) $40 billion c) $50 billion d) $60 billion e) None of these

5) As per Union Budget 2011-12, Indian Micro Finance Equity Fund of Rs.100 crore to be

created with?

a) SBI b)ICICI

c) NABARD d)IDBI e) SIDBI

6) Rural Infrastructure Develo-pment Fund (RIDF) was set up by the Government in?

a) 1995-96 b) 1996-97 c) 1997-98 d)1998-99 e) None of these

7) The corpus allocated for Rural Infrastructure Development Fund (RIDF) for 2011-12 is?

a) Rs.16000 b) Rs.17000 c) Rs.18000 d) Rs.19000 e) None of these

8) The target of credit flow to farmers has been raised from Rs.3,75,000 crore of 2010-11 to

……in 2011-12?

a) Rs.4,75,000 crore b) Rs.5,75,000 crore c) Rs.6,75,000 crore d) Rs.7,75,000 crore e) None of

these

9) Rural Infrastructure Develo-pment Fund (RIDF) is maintained by?

a) RBI b) SBI c) NABARD d) IDBI Bank e) None of these

10) Eligibility for pension under Indira Gandhi National Old Age Pension Scheme for BPL

beneficiaries reduced from 65 years of age to?

a) 64 years b) 63 years c) 62 years d) 61 years e) 6o years

11) Exemption limit for the general category of individual taxpa-yers enhanced from 1,60,000

to?

a) 1,70,000 b) 1,80,000 c) 1,90,000 d) 2,00,000 e) None of these

12) As per Union Budget 2011-12, standard rate of Service Tax is?

a) 10 % b) 11 % c) 12 %d) 13 % e) None of these

13) As per Union Budget 2011-12, Defence allocation is?

a) 1.64 lakh crore b) 1.74 lakh crore c) 1.84 lakh crore d) 1.94 lakh crore e) None of these

14) In the Constitution of India, the Union Budget of India referred to as the?

a) Economic Survey b) Monetary and Credit Policy c) Foreign Trade Policy d) Annual Financial

Statement

e) None of these

15) Which of the following department is not a part of Finance Ministry of India?

a) Department of Economic Affairs

b) Department of Expenditure

c) Department of Revenue

d) Department of Disinvestments

e) Department of Industrial Policy & Promotion

16) Which Department principal responsibility is the prep-aration of the Union Budget annually

(excluding the Railway Budget)?

a) Department of Economic Affairs

b) Department of Expenditure

c) Department of Revenue

d) Department of Disinvestments

e)Department of Financial Servies

17) Which of the following is a government body that offers a single window clearance for

proposals on foreign direct investment in the country that are not allowed access through the

automatic route?

a) Securities and Exchange Board of India

b) Reserve Bank of India

c) Export-Import Bank of India

d) Foreign Investment Promo-tion Board

e) Bombay Stock Exchange

18) The first woman Finance Secretary of India?

a) Sushma Nath

b)Shyamala Gopinath

c) Chanda Kochhar

d) Shikha Sharma

e) None of these

19) The only woman to hold the post of the finance minister of India?

a) Vijaya Lakshmi Nehru Pandit b) Sarojini Naidu

c) Rajkumari Amrit Kaur d) Indira Gandhi e)None of these

20) The Union Budget is always presented first in ?

a) Lok Sabha b) Rajya Sabha c) Joint Session of the Parliament d) State Assemblies e) None of

these

21) Which of the following presents the Economic Survey in the parliament every year, just

before the Union Budget?

a) RBI b) Ministry of Finance c) Ministry of Commerce d) Planning Commission e) Finance

Commission

22) The financial year in India starts on?

a) 1st January b)1stMarch c) 1st April d) 1st July e) None of these

23) A fiscal year in India ends on?

a) February 28 b) March 31 c)April1 d)July1e)December 31

24) A. Gross Tax receipts are estimated at 9,32,440 crore.

B. Non-tax revenue receipts estimated at 1,25,435 crore.

C. Total expenditure proposed at 12,57,729 crore.

D. Increase of 18.3 per cent in total Plan allocation.

E. Increase of 10.9 per cent in the Non-plan expenditure.

Which of the statements given above is/are correct?

a) A and B b) B and C

c) C and D d) D and E e) All of the above

25) A.Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real

terms.

B. Government expects econo-my to grow at 9 % in 2011-12.

C. Fiscal Deficit target at 4.6% for 2011-12, down from 5.1% estimated for 2010-11.

D. Central Government debt estimated at 44.2 per cent of GDP for 2011-12 as against 52.5 per

cent recomm-ened by the 13th Finance Commission.

E. 40,000 crore to be raised through disinvestment in 2011-12.

Which of the statements given above is/are correct?

a) A and B b) B and C

c) C and D d) D and E e) All of the above

26) A. Government committed to retain at least 51 per cent ownership and management control

of the Central Public Sector Undertakings.

B. "India Microfinance Equity Fund" of Rs.100 crore to be created with SIDBI. Gover-nment

considering putting in place appropriate regulatory framework to protect the interest of small

borrowers.

C."Women's SHG's Develo-pment Fund" to be created with a corpus of Rs. 500 crore.

D. Corpus of RIDF XVII to be raised from Rs.16,000 crore to 20,000 crore.

E. 1,000 crore to be provided to SIDBI for refinancing incre-mental lending by banks to these

enterprises.

Which of the statements given above is/are correct?

a) A and D b) A, B and C c) C and D d) D and E e) None of these

27) A.Allocation under Rashtriya Krishi Vikas Yojana (RKVY) increased from Rs. 6,755 crore

to 7,860 crore.

B. Rs.10,000 crore to be contributed to NABARD's Short-term Rural Credit fund for 2011-12.

C. Allocation for Bharat Nirman programme proposed to be increased by Rs.10,000 crore from

the current year to Rs. 58,000 crore in 2011-12.

D. Rs. 21,000 crores for primary education to implement Sarva Shiksha Abhiyan.

E. Defence budget hiked to ’1.64 lakh crore

Which of the statements given above is/are correct?

a) A and B b) B and C c) C and D d) D and E

e) All of the above

28) Consider the following statements:

1) Finance minister Pranab Mukherjee unveiled the Union Budget 2011-12 on February 28,

2011.

2) Economic Survey 2010-11 was presented in the Parliament on Feb 25, 2011.

3) India's Railway Minister Mamta Banerjee presented the new Railway Budget for the year

2011-12 in the parliament on February 25, 2011.

Which of the statements given above is/are correct?

a) 1 only b) 2 only

c) 3 only d) All of the above e) None of these

Answers:

1) e, 2) a, 3) d, 4) a, 5) e, 6) a, 7) c, 8) a, 9) c, 10) e, 11) b, 12) a, 13) a, 14) d, 15) e, 16) a, 17)

d, 18) a, 19) d, 20) a, 21) b, 22) c, 23) b, 24) e, 25) e, 26) b, 27) e, 28) d

Friday, July 22, 2011

Banking Awareness some important Topics

1. What is the Monetary Policy?

 The Monetary and Credit Policy is the policy statement, traditionally announced twice a year,through which the Reserve Bank of India seeks to ensure price stability for the economy.These factors include - money supply, interest rates and the inflation. In banking and economicterms money supply is referred to as M3 - which indicates the level (stock) of legal currency in theeconomy.Besides, the RBI also announces norms for the banking and financial sector and the institutions,which are governed by it. These would be banks, financial institutions, non-banking financialinstitutions, Nidhis and primary dealers (money markets) and dealers in the foreign exchange(forex) market.

2. When is the Monetary Policy announced?

 Historically, the Monetary Policy is announced twice a year - a slack season policy (April-September) and a busy season policy (October-March) in accordance with agricultural cycles.These cycles also coincide with the halves of the financial year.Initially, the Reserve Bank of India announced all its monetary measures twice a year in theMonetary and Credit Policy. The Monetary Policy has become dynamic in nature as RBI reservesits right to alter it from time to time, depending on the state of the economy.However, with the share of credit to agriculture coming down and credit towards the industrybeing granted whole year around, the RBI since 1998-99 has moved in for just one policy in April-end. However a review of the policy does take place later in the year.

3. How is the Monetary Policy different from the Fiscal Policy?

Two important tools of macroeconomic policy are Monetary Policy and Fiscal Policy.The Monetary Policy regulates the supply of money and the cost and availability of credit in theeconomy. It deals with both the lending and borrowing rates of interest for commercial banks.The Monetary Policy aims to maintain price stability, full employment and economic growth.The Reserve Bank of India is responsible for formulating and implementing Monetary Policy. Itcan increase or decrease the supply of currency as well as interest rate, carry out open marketoperations, control credit and vary the reserve requirements.

The Monetary Policy is different

from Fiscal Policy as the former brings about a change in theeconomy by changing money supply and interest rate, whereas fiscal policy is a broader tool withthe government.

The Fiscal Policy can be used

to overcome recession and control inflation. It may be defined asa deliberate change in government revenue and expenditure to influence the level of nationaloutput and prices.For instance, at the time of recession the government can increase expenditures or cut taxes inorder to generate demand.

On the other hand, the government can reduce its expenditures or raise taxes during inflationarytimes. Fiscal policy aims at changing aggregate demand by suitable changes in governmentspending and taxes.The annual Union Budget showcases the government’s Fiscal Policy.

4. What are the objectives of the Monetary Policy?

 The objectives are to maintain price stability and ensure adequate flow of credit to the productivesectors of the economy.Stability for the national currency (after looking at prevailing economic conditions), growth inemployment and income are also looked into. The monetary policy affects the real sector throughlong and variable periods while the financial markets are also impacted through short-termimplications.There are four main ‘channels’ which the RBI looks at:

Quantum channel: money supply and credit (affects real output and price level throughchanges in reserves money, money supply and credit aggregates).

Interest rate channel.

Exchange rate channel (linked to the currency).

Asset price.

5. All this is more linked to the banking sector. How does the Monetary Policy impactthe individual?

 In recent years, the policy had gained in importance due to announcements in the interest rates.Earlier, depending on the rates announced by the RBI, the interest costs of banks wouldimmediately either increase or decrease.A reduction in interest rates would force banks to lower their lending rates and borrowing rates.So if you want to place a deposit with a bank or take a loan, it would offer it at a lower rate of interest.On the other hand, if there were to be an increase in interest rates, banks would immediatelyincrease their lending and borrowing rates. Since the rates of interest affect the borrowing costsof corporates and as a result, their bottom lines (profits), the monetary policy is important for themalso.Being the central bank, however, the RBI would have a say and determine direction on interestrates as it is an important tool to control inflation.The bank rate is a tool used by RBI for this purpose as it refinances banks at the this rate. Inother words, the bank rate is the rate at which banks borrow from the RBI.

6. How was the scenario prior to recent liberalisation?

 Prior to recent liberalisation, the RBI resorted to direct instruments like interest rates regulation,selective credit control and CRR (cash reserve ratio) as monetary instruments

o ne of the risks emerging in the past 5-7 years (through the capital flows and liberalisation of thefinancial sector) is that potential risk has increased for institutions. Thus, financial stability hasbecome crucial and there are concerns relating to credit flows to the agricultural sector and small-scale industries.

7. What do the terms CRR and SLR mean?

 CRR, or cash reserve ratio, refers to a portion of deposits (as cash) which banks have tokeep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank depositsis totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby,inflation.Besides the CRR, banks are required to invest a portion of their deposits in government securitiesas a part of their statutory liquidity ratio (SLR) requirements.The government securities (also known as gilt-edged securities or gilts) are bonds issued by theCentral government to meet its revenue requirements. Although the bonds are long-term innature, they are liquid as they can be traded in the secondary market.Since 1991, as the economy has recovered and sector reforms increased, the CRR has fallenfrom 15 per cent in March 1991 to 5.5 per cent in December 2001. The SLR has fallen from 38.5per cent to 25 per cent over the past decade. (verify about current rate)

8. What impact does a cut in CRR have on interest rates?

 From time to time, RBI prescribes a CRR or the minimum amount of cash that banks have tomaintain with it. The CRR is fixed as a percentage of total deposits. As more money chases thesame number of borrowers, interest rates come down.

9. Does a change in SLR and gilts products impact interest rates?

 SLR reduction is not so relevant in the present context for two reasons:First, as part of the reforms process, the government has begun borrowing at market-relatedrates. Therefore, banks get better interest rates compared to earlier for their statutory investmentsin government securities.Second, banks are still the main source of funds for the government.This means that despite a lower SLR requirement, banks’ investment in government securitieswill go up as government borrowing rises. As a result, bank investment in gilts continues to behigh despite the RBI bringing down the minimum SLR to 25 per cent a couple of years ago.Therefore, for the purpose of determining the interest rates, it is not the SLR requirement that isimportant but the size of the government’s borrowing programme. As government borrowingincreases, interest rates, too, rise.Besides, gilts also provide another tool for the RBI to manage interest rates. The RBI conductsopen market operations (OMO) by offering to buy or sell gilts.If it feels interest rates are too high, it may bring them down by offering to buy securities at alower yield than what is available in the market

10. How does the Monetary Policy affect the domestic industry and exporters inparticular?

 Exporters look forward to the monetary policy since the central bank always makes anannouncement on export refinance, or the rate at which the RBI will lend to banks which haveadvanced pre-shipment credit to exporters.A lowering of these rates would mean lower borrowing costs for the exporter.

11. The stock markets and money move similarly, in some ways. Why?

 Most people attribute the link between the amount of money in the economy and movements instock markets to the amount of liquidity in the system. This is not entirely true.The factor connecting money and stocks is interest rates. People save to get returns on their savings. In true market conditions, this made bank deposits or bonds (whose returns are linked tointerest rates) and stocks (whose returns are linked to capital gains), competitors for people’ssavings.A hike in interest rates would tend to suck money out of shares into bonds or deposits; a fallwould have the opposite effect. This argument has survived econometric tests and practicalexperience.

12. What are the measures to regulate money supply?

 The RBI uses the interest rate, OMO, changes in banks’ CRR and primary placements of government debt to control the money supply. OMO, primary placements and changes in theCRR are the most popular instruments used.Under the OMO, the RBI buys or sells government bonds in the secondary market. By absorbingbonds, it drives up bond yields and injects money into the market. When it sells bonds, it does soto suck money out of the system.The changes in CRR affect the amount of free cash that banks can use to lend - reducing theamount of money for lending cuts into overall liquidity, driving interest rates up, lowering inflationand sucking money out of markets.Primary deals in government bonds are a method to intervene directly in markets, followed by theRBI. By directly buying new bonds from the government at lower than market rates, the RBI triesto limit the rise in interest rates that higher government borrowings would lead to.

13. Considering that interest rates are now tweaked looking at market conditions, isthe Monetary Policy losing its importance?

 Governor of RBI has said he would make the Credit Policy a ‘non-event’ and would use the policyonly to review developments in the banking industry and money markets. Interest rateannouncements since 1998-99 were based on economic and market developments.The policy now concentrates mostly on structural issues in the banking industry.

Some Monetary Policy terms

14. Bank Rate

 Bank rate is the minimum rate at which the central bank provides loans to the commercial banks.It is also called the discount rate. (6%)(29.04.2003)Usually, an increase in bank rate results in commercial banks increasing their lending rates.Changes in bank rate affect credit creation by banks through altering the cost of credit.

15. Cash Reserve Ratio

 All commercial banks are required to keep a certain amount of its deposits in cash with RBI. Thispercentage is called the cash reserve ratio. The current CRR requirement is 6.5 per cent.(28.04.2007)

16. Inflation

 Inflation refers to a persistent rise in prices. Simply put, it is a situation of too much money andtoo few goods. Thus, due to scarcity of goods and the presence of many buyers, the prices arepushed up.The converse of inflation, that is, deflation, is the persistent falling of prices. RBI can reduce thesupply of money or increase interest rates to reduce inflation.

17. Money Supply (M3)

 This refers to the total volume of money circulating in the economy, and conventionally comprisescurrency with the public and demand deposits (current account + savings account) with thepublic.The RBI has adopted four concepts of measuring money supply. The first one is M1, whichequals the sum of currency with the public, demand deposits with the public and other depositswith the public. Simply put M1 includes all coins and notes in circulation, and personal currentaccounts.The second, M2, is a measure of money, supply, including M1, plus personal deposit accounts -plus government deposits and deposits in currencies other than rupee.The third concept M3 or the broad money concept, as it is also known, is quite popular. M3includes net time deposits (fixed deposits), savings deposits with post office saving banks and allthe components of M1.

18. Statutory Liquidity Ratio

 Banks in India are required to maintain 25 per cent of their demand and time liabilities ingovernment securities and certain approved securities.These are collectively known as SLR securities. The buying and selling of these securities laidthe foundations of the 1992 Harshad Mehta scam.

19. Repo

A repurchase agreement or ready forward deal is a secured short-term (usually 15 days) loan byone bank to another against government securities. Present repo rate is 7.75% (31.3.2007)Legally, the borrower sells the securities to the lending bank for cash, with the stipulation that atthe end of the borrowing term, it will buy back the securities at a slightly higher price, thedifference in price representing the interest.

20. Open Market Operations

 An important instrument of credit control, the Reserve Bank of India purchases and sellssecurities in open market operations.In times of inflation, RBI sells securities to mop up the excess money in the market. Similarly, toincrease the supply of money, RBI purchases securities.

Latest Banking Awareness for Ibps exam

1. SBI commercial & International Bank Limited acquired by ...........?

1) Reserve Bank of India

2) Ministry of Commerce

3) SEBI      4) State bank of India

5) None

2. RBI ordered that more than what denomination the Demand Drafts should not be issued against Cash, particularly by RRBs?

1) Rs.1000       2) Rs.10,000  3) Rs.50,000

4) Rs.1,50,000   5)None

3. LIC(Life Insurance Corporation of India) made a pact to issue Credit Cards with ?...........

1) HDFC              2) AXIS Bank 

3) Corporation Bank

4) ICICI 5) Andhra Bank

4. Recently EXIM Bank (Export and Import Bank of India) provided $ 20 million line of credit to...........?

1) Switzerland 2) Zimbwabe 3) Swaziland

4) Australia 5) New Zealand

5. Karnataka State Highway improvement project got $ 315 million from ...........?

1) Asian Development Bank  2) World Bank

3) IMF 4) AFD           5) ODA

6. Most active segment of the money market in India is...........?

1) Repo rate 2) Statutory Liquidity Ratio

3) Call money market

4) Certificate of Deposits market

5) Term note market

7. Syndicated loan means ...........?

1) the loan offered to BPL families

2) loan offered to one bank by different

states in India

3) loan taken by different borrowers from

one bank in the single account

4) loan given by the group of banks to single

borrower

5) loans ban by RBI

8. India signed to get Rs. 1600 cr from German Bank to finance world biggest solar power plants in Dhule district of

1) Andhra Pradesh 2) Karnataka 3) Mysore

4) Maharastra 5) Goa

9. $ 200 million will be given to power distribution in Madhya Pradesh by ….

1) World Bank

2) Asian development Bank        3) AFD

4) International Monetary Fund   5) IFC

10. $ 648 million to be provided by world bank to construct 444 MW hydro power project in...........

1) Uttarakhand  2) Uttar Pradesh  3) Assom

4) Goa              5) Rajasthan

11. LIBOR (London Inter bank Offered Rate) being  published by...........

1) BSE     2) Thomson Reuters

3) Washington Post    4) New York Times

5) London University

12. Till Kharif 2010, how many farmers covered under National Agriculture

Insurance Scheme ...........

1) 20.25 crore   2) 18.65 crore  3) 12.4 crore 

4) 9.6 crore      5) 17.14 crore

13. Center for Monitoring Indian Economy estimated 2011-12 fiscal year growth will be............percent?

1) 5.2 2) 9.1     3) 8.1 4) 10.5 5) 9.5

14. Rastriya Arogya Nidhi available to...........to

get  medical assistance.

1) The inhabitants of poor states

2) The inhabitants of North eastern states

3) BPL families

4) MGNREGA domestic workers only

5) None

15. Dal Bhat Scheme provides a meal for Rs.5 to poor. This is the scheme of...........?

1) Bihar 2) Tamilnadu

3) Arunachal Pradesh 4) Jharkhand

5) Assam

16. Which state has idea of bringing the federations of Self Help Groups (SHG)?

1) Karnataka 2) Maharastra

3) Andhra Pradesh 4) Tamilnadu

5) Uttar Pradesh

17. The chairman of Parliamentary standing committee on Law and Justice?

1) Murali Manohar Joshi

2) P.C.Chako

3) L.K.Advani

4)Yashwanth Sinha

5) Abhisheik Manu Singhvi

18. On 21 July 2011, for the defence pensioners which scheme launched?

1) Sudha 2) Suvidha      3 ) Sugam

4) Saral 5) Sangam

19. International Atomic Energy Agency was invited by India to visit ........... Nuclear plant recently?

1) Apsara 2) Druva

3) Kalpakam 4) Jaitapur

5) None

20. Kaveri Engine to be used in light combat aircraft ( LAC). This engine to be developed with the aid of...........?

1) France                 2) USA 3) UK

4) Germany 5) Japan

21. Recently India and which country sign memorandum of understanding in the cooperation of Rural Development?

1) Brunai 2) Laos 3) Lesotho

4) South Africa 5) None

22. Who heads the panel to estimate the losses of power distribution companies in 2007-2010?

1) Narla Tatha Rao 2) Vidhya Sagar

3) V.K.Shunglu 4) Shantharam

5) Vijay C Kelkar

23. On August 13 , 2011 which multiple missile trail version successful?

1) Agni - II 2) Pruthvi- I 3) Nag

4) Akash 5) Brahmos – III

24. Fifth conference of SAARC speakers and parliamentarians held recently in..........

1) New Delhi 2) Mumbai      3) London

4) Dhaka 5) Male

25. Presently India is the third largest producer of Steel in the world. It becomes the second Largest producer by which year as per the estimate of central government recently?

1) 2013  2) 2020 3) 2045 4) 2050 5) 2015

26. Sevottam Certificate got by...........?

1) GPO, Mumbai

2) GPO, Rastrapathi Bhavan

3) GPO, Hyderabad

4) Gol Dak Khana, the Newdelhi GPO

5) All of above

27. Bank deposits grow by ...........percent during the March 2011- July 2011?

1) 8 2) 5.5 3) 6.1 4) 7 5) 9

28. Raise in inflation rate leads to decline in ?...........

1) interest rate

2) raise in the deposits in the banks

3) decrease the real interest rate

4) raise the credit growth by banks

5) None

29. Difference between interest earned and interest paid is called ..........?

1) Gross Interest

Income

2) Paid Interest

Income

3) Free Interest

Income

4) Net Interest

Income

5)  All of above

30. Express Remit is the brand name remittance facility of ...........?

1) SBH 2) Allahabad Bank

3) Repco Bank 4) UBI 5) SBI

31. Rs.1000 can be withdrawn from the Point ofSales Terminals ( POS) as per the order of RBI. Which is the first bank to introduce this

facility?

1) SBI 2) SBH     3) Union Bank of India

4) ICICI 5) HDFC

32. Recently RBI advised the banks to reduce the Net Interest Margin (NIM) come down to see the double digit growth. What is meant by it ...........

1) Banks accept the deposits at high

rate of interest and lend at higher

rate of interest

2) Banks accept the deposits at high

rate of interest and lend at no rate

of interest

3) Banks accept the deposits at high

rate of interest and lend at lower

rate than the present rates

4) Banks accept the deposits at lower

rate of interest and lend at higher rate

5) None

33. Interest Corridor includes ...........?

1) Base rate and savings rate

2) Bank rate and Reverse Repo rate

3) Base rate and Repo rate

4) Repo rate and Reverse Repo rate

5) None

34. Asset-Liability mismatch usually happened in...........?

1) Home Loan and Infrastructure Project

Financing

2) Education loan and personal loan

3) Personal loan and marriage loan

4) Travel loan and marriage loan

5) Education loan and School Fees

35. First Dedicated Education Loan Company CREDILA is the associate body of...........?

1) HDFC 2) Andhra Bank

3) United Bank of India 4) Axis bank

5) SBH

36. Portal-linked service, which enables a dissatisfied customer to SMS 'unhappy' to 8008202020, if he is a customer of...........this is the first of its kind in India?

1) SBI 2) IDBI 3)HDFC     4) ICICI

5) Indian bank

37. INFINET is a communication channel for transmission of electronic communication by banks. INFINET stands for...........?

1) Indian Financial Internal Network

Electronic Transaction     

2) Indian Financial Internal Network

3) Indian National Financial Internal Net

Extra Track     

4) Indian Financial Network     

5) None

38. RBI subsidiary BRBNMPL related statements are given. Pick the incorrect one?

1) Bharatiya Reserve Bank Note Mudran

Private Limited was established by RBI

2)  its wholly owned subsidiary of RBI

established on 3rd February 1995

3) It is established to handover the functions

of RBI to mint currency

4) It is established to bridge the gap

between the supply and demand for bank

notes in the country.

5) The company manages 2 Presses one at

Mysore in Karnataka and the other at

Salboni in West Bengal.

39. Rohinton Nariman is the new ...........of India?

1) Election Commissioner

2) Auditor General

3) Solicitor General

4) Army General

5) RBI Governor

40. 110th constitutional amendment bill connected to...........?

1) Reservation of woman local bodies

2) Reservation of SC and ST in the

Assembly elections

3) Jan lokpal Bill 4) GST council

5) Direct Taxes Code

41. Rs.117.64 Crores released by the Central Government to promote production of...........?

1) Tobacco 2) Food grains

3) Nutri-cereals 4) Pulses 5) Rice

42. Sucheta becomes first Indian woman to cross ...........?

1) Antartica 2) Arctic Ocean

3) Sahara Desert 4) Gobi Desert

5) Suez Canal

43. Standard & Poor downgrades USA AAA credit rating to

1) AAA ++ 2) AAB 3) BBB

4) AA+ 5) AB+

44. Which coach became first one to train 100 cricket test matches in the world?

1) Waqar Younus        2) Greg Chappel

3) Duncan Fletcher     4) David Boon

5) Kapil Dev

45. 2014 FIFA world Cup to be held from 12 June to 13 July in

1) London (Britain) 2)  Rio ( Brazil)

3) Incheon (South Korea)

4) Washington (USA)       5) None

46. Who was called the Doctor Death, died recently, helped many people to die, if they are suffering from the dreaded and long time diseases?

1) Dr. Subodh Roy     2) Kimitachi Penogogi

3)  Dr.Jack Kevorkian 4) Dr. Shantha Singh

5) None

47. India-South Africa trade to touch $………...billion before 2014?

1) 25 2) 10     3) 50    4) 15      5) 60

48. Modi cup is related to……….?

1) Cricket 2) Golf 3) Hockey

4) Tennis 5) Carrom

49. Arasu Cable TV Corporation belongs to the state of ………..?

1) Tamilnadu   2) Kerala

3) Andhra Pradesh 4) Puduccherry

5) None

50. Direct Tax do not include ………..?

1) Income Tax 2) Corporate Duty

3) Service Tax 4)  Sales Tax

5) Wealth Tax

General Awareness

KEY: 1)4  2)3 3)2 4)3 5)1 6)3 7)4 8)4  9)2

10)1 11)2 12)5 13)3 14)3 15)4 16)3 17)5

18)5 19)4 20)1 21)3 22)3 23)5 24)1 25)1

26)4 27)2 28)3 29)4 30)5 31)3 32)3 33)4

34)1 35)1 36)1 37)4 38)3 39)3 40)1 41)3

42)4 43)4 44)3 45)2 46)3 47)4 48)3 49)1

50)4.