This document contains multiple choice questions related to finance and economics. Some key topics covered include monetary policy tools like CRR, repo rate, reverse repo rate; fiscal policy and the FRBM Act; money supply measures like M1, M2, M3; inflation indexes like WPI, CPI; equilibrium concepts in markets; sectors of the economy; and theories related to demand, supply, and interest. The questions test understanding of core economic and financial concepts.

1. ABM
MODULE-A
The Finance Ministerisrequiredtokeepthe Parliamentinformedthrough____on the implementation
and to take corrective measuresif the reviewsshow deviations.
a. Half yearlyreviews
b. Annual reviews
c. Monthlyreviews
d. Quarterlyreviews
Ans- d
..............................................
Pickodd manout.
a. Rent
b. Interest
c. M3
d. Wages
Ans- d
..............................................
Whichone is the force behindthe SupplyCurve?
a. Cost of production
b. Technological advances
c. Governmentpolicies
d. All of the above
Ans- d
..............................................
In capital marketthe erstwhile badlasystemisreplacedby____.
a. openmarketsystem
b. outcrysystem
c. optionandfutures
d. Loggingsystem
Ans- c
..............................................
Loweringthe elasticityof liquiditypreferencewithrespecttothe changesininterestrate,the LM curve
will be ___.
a. No effect
b. Flat
c. Lesssteep
d. steeper
Ans- d
..............................................
CPIis the cost of livingindex popularlyknownas___.
a. Cost –pushinflation
b. Demand– pull inflation
c. Core inflation
d. Headline inflation
Ans- c
..............................................
Pickthe correct statement.

2. a. The quantityof moneydemandedincreaseswiththe fall inthe rate of interest.
b. The quantityof moneydemandedincreaseswiththe decrease inthe level of nominalincome.
c. Increase inmoney supplyleadstothe rise inthe rate of interest.
d. Demandof moneyisdirectlyrelatedtothe rate of interest.
Ans- a
..............................................
Pickthe incorrectstatement.
a. The supplyof money,ata giventime,isfixedbythe monetaryauthorityof the country.
b. The rate of interestindeterminedbydemandformoneyandsupplyof money.
c. The moneydemandcurve ata givenlevel of income isdownwardsloping.
d. Increase inlevel of moneyleadstodownwardshiftingof the curve of demandformoney(orinshort,
moneydemandcurve).
Ans- d
..............................................
Selectthe incorrectstatement.
a. The higherthe levelof income,the lowerwouldbe the liquiditypreference curve.
b. If the rate of interestislowerthanthe equilibriumrate,there will be excessdemandformoney.
c. Excessdemandformoneyat an interestrate below the equilibriumleadstothe rise inthe interest
rate of the equilibriumlevel.
d. Giventhe moneydemandcure orcurve of liquiditypreference,anincrease inquantityof money
bringsdownthe rate of interest.
Ans- a
..............................................
Pickthe correct statement.
a.a. IS curve tellsuswhatwill be variousratesof interestatdifferentlevelsof income,giventhe
investmentdemandcurve anda familyof
savingcurvesat differentlevelsof income.
b. LM curve isobtainedfroma familyof liquiditypreference curvescorrespondingtovariousincome
levelstogetherwiththe givenstockof
moneysupply.
c. LM curve depictsthe variouscombinationsof interestandincome levels,atwhichmoneymarketisin
equilibrium.
d. All are correct.
Ans- d
..............................................
Pickthe incorrectstatement.
a. IS curve is derivedfromthe classical theory.
b. Intersectionof ISandLM curve determinesboththe interestandincome.
c. As income decreases,liquiditypreference curve shiftsoutwardandtherefore the rate of interestrises.
d. LM curve isderivedfromKeynes’liquiditypreference theoryof interest.
Ans- c
..............................................
IS curve and LM curve relateswhichof the twovariables?
a. Demandand supply
b. Moneyand market
c. Moneyand interestrate
d. Income andrate of interest
Ans- d

3. ..............................................
Market DemandCurve obeysthe ____.
a. Law of downward-slopingdemand
b. Law of upward-slopingdemand
c. Law of diminishing
d. None of these
Ans- a
..............................................
86th constitutional amendmenthasmade free andcompulsoryeducationtoall children_____.
a. up to age 14 girlschild
b. upto 10th class to girl
c. 6 to 14 yr to all children
d. 6 to 14 yr to all female children
Ans- c
..............................................
Whichof the followingisCapitalisticEconomy?
a. England
b. China
c. India
d. None of these
Ans- a
..............................................
An increase ingovernmentexpenditure ortransferpaymentswill shiftthe IScurve ___.
a. To right
b. To left
c. No change
d. Downwards
Ans- a
..............................................
Hindurate of growthis __.
a. 3%
b. 3.5%
c. 5%
d. 7%
Ans- b
..............................................
Whichif the followingstatementisNOTtrue?
a. CPIreflectsthe change inthe level of pricesof a basketof goodsand servicespurchased/consumedby
the householdsatthe retail level.
b. WPIreflectsthe change inthe level of pricesof a basketof goodstradedbetweencorporationsatthe
wholesalelevel.
c. GDP deflatorisbasedona fixedbasketof goodsandservicesandthisbasketisnotchangedaccording
to people’sconsumptionandinvestmentpatterns.
d. WPIhelpstomonitorprice movementsthatreflectprice movementsthatreflectsupplyanddemand
inindustry, manufacturingandconstructionsectors.
Ans- c
..............................................
Pickthe incorrectstatement.

4. a. Bond pricesandrate of interestare inverselyrelated.
b. If bondpricesgo down,rate of interestincreases.
c. If bondpricesgo up,rate of interestrises.
d. If bondpricesgo up, rate of interestdeclines.
Ans- c
..............................................
DemandSchedule isthe ____.
a. Relationshipbetweendemandandquantitybought
b. Relationshipbetweenprice andquantitybought
c. Relationshipbetweenprice anddemand
d. None of these
Ans- b
..............................................
A marketequilibriumcomesatthe price atwhichquantitydemandedequalstoquantity____.
a. Produced
b. Supplied
c. in Inventory
d. inStock
Ans- b
..............................................
In capital market,the screenbasedsystemisreplacedby____.
a. bookkeepingsystem
b. lodgingsystem
c. Openoutcry system
d. TelephonicSystem
Ans- c
..............................................
MoneySupplyrefersto____.
a. The amountof moneyinbanks
b. The amountof moneywiththe people
c. The amountof moneyincirculationinan economy
d. None of these
Ans- c
..............................................
Demographicadvantage ispopularlycalledasdemographic____.
a. Preference
b. Dividend
c. Premium
d. Coupon
Ans- b
..............................................
Forcesbehindthe demandcurve ___.
a. Expectationaboutfuture economicconditions
b. Average Income
c. Cost of production
d. Botha and b
Ans- d
..............................................

5. Governmentof Indiaintroduced____policyforraisinginterestrate tocombat inflation.
a. Expansionarypolicy
b. Monetarypolicy
c. fiscal policy
d. contractionarypolicy
Ans- d
..............................................
Central bankuses____ to control the moneysupplyinthe market.
a. SLR
b. CRR
c. base rate
d. bankrate
Ans- d
..............................................
A downwardSlopingDemandCurve relatesquantitydemandedto____.
a. Supply
b. Income
c. Price
d. Demand
Ans- c
..............................................
Narrowmoneyisindicatedby___.
a. M1
b. M2
c. M3
d. M4
Ans- a
..............................................
Time depositsare ___.
a. Paidon demand
b. Notpaidon demand
c. Relativelylessliquidthancashand demanddeposits
d. Botha & b
Ans- d
..............................................
Demanddepositsare ___.
a. Paidon demand
b. Notpaidon demand
c. Relativelylessliquidthancashand demanddeposits
d. Botha & b
Ans- a
..............................................
Service sectorisalsoreferredtoas ____.
a. Primarysector
b. Secondarysector
c. Tertiarysector
d. None of these
Ans- c

6. ..............................................
Who gave Scarcity Theoryof Economics?
a. AlfredMarshall
b. Lionel Robbins
c. AdamSmith
d. None of these
Ans- b
..............................................
The presentbankingsystemiscalleda_____.
a. On line bankingsystem
b. Fractional reserve bankingsystem
c. Accrual systemof accounting
d. Bookkeepingaccountingsystem
Ans- b
..............................................
____ isthe rate of interestwhichacentral bank chargeson the loansand advance thatit extendsto
commercial banksandotherfinancial intermediaries.
a. Base Rate
b. BankRate
c. CRR
d. RepoRate
Ans- b
..............................................
_____ isthe rate at whichthe RBIlendsshortterm moneytothe banks.
a. Reverse RepoRate
b. RepoRate
c. OMO
d. SLR
Ans- b
..............................................
____ isthe rate at whichbankspark theirshortterm excessliquiditywiththe RBI.
a. Reverse RepoRate
b. RepoRate
c. OMO
d. BankRate
Ans- a
..............................................
Whichof the followingisthe benchmarkforpricingof securitiesinothermarkets?
a. MoneyMarket
b. G - SecsMarket
c. ForeignExchange Market
d. Capital Market
Ans- b
..............................................
Afterthe introductionof financialsectorreformsincapital market,rollingsettlementreplaced___.
a. 14-day settlementcycle
b. Badlasystem

7. c. openoutcry system
d. depositorysystem
Ans- a
..............................................
The FRBM act was enactedas a lawin August2003. The committee whichcreatedthe actwasheaded
by ___.
a. S. H. Khan
b. Narasimhan
c. Dr E. A.S. Sarma
d. Tandon
Ans- c
..............................................
Whichof the followingstatementsthe central governmenthastoplace before the Parliamenteachyear
underFRBMact?
a. MediumTermFiscal Policy
b. Fiscal PolicyStrategy
c. MacroeconomicFramework
d. All of these
Ans- d
..............................................
By whatpercentof GDP, the FRBMact suggeststhe Centre toreduce the fiscal deficit?
a. 2
b. 3
c. 4
d. 7
Ans- b
..............................................
Afterthe introductionof financialsectorreformsincapital market,depositorysystemwasreplacedwith
___.
a. 14-day settlementcycle
b. Badlasystem
c. openoutcry system
d. demattingof securities
Ans- d
..............................................
100% FDI ispermittedunderaverylimitednumberof sectors.Whichof the followingisone of them?
a. retail tradingandlotterybusiness
b. investmentcompanies
c. petroleumandairtransport
d. defence,insurance andassetreconstruction
Ans- a
..............................................
Under whichof the following,100%FDI is notpermitted?
a. retail tradingandlotterybusiness
b. gamblingandbetting
c. atomic energy
d. printmediaandinsurance
Ans- d

8. ..............................................
FIIare permittedtoinvestindebtinstrumentsissuedby__.
a. private corporate
b. government
c. both a and b
d. None of these
Ans- c
..............................................
___ is a standardmeasure of income /expenditure inequality.
a. HDI
b. Gini coefficient
c. GDP
d. GNP
Ans- b
..............................................
Whichpolicyisusedby the government,central bankormonetaryauthoritytocontrol the supply,
availabilityandcostof moneyor ROI to
obtaingrowthand stabilityof the economy?
a. monetarypolicy
b. fiscal policy
c. both a and b
d. None of these
Ans- a
..............................................
Whichpolicyreferstogovernmentborrowings,spendingandtaxation?
a. monetarypolicy
b. fiscal policy
c. both a and b
d. None of these
Ans- b
..............................................
Whichof the followingisalsoknownasdiscountrate?
a. CRR
b. RRR
c. bank rate
d. SLR
Ans- c
..............................................
The depositliabilitiesthatbankshave to maintainwiththe RBIinthe form of liquidcashisknownas ___
and itis a certain percentage of
their__ demandandtime liabilities.
a. CRR, net
b. CRR,total
c. SLR, net
d. SLR, total
Ans- a
..............................................
The amount that all bankshave to maintainincashor in the formof goldor approvedsecurities is

9. knownas ___ and itis a certainpercentage
of their___ demandandtime liabilities.
a. CRR, net
b. CRR,total
c. SLR, net
d. SLR, total
Ans- d
..............................................
To absorb liquidityfromthe system, whichof the following wasintroducedbyRBIinMarch 2004?
a. OMO (OpenMarketOperations)
b. MSS (MarketStabilizationScheme)
c. SCC (Selective CreditControl)
d. None of these
Ans- b
..............................................
What wouldbe the consequence of increasing repo(repurchase) rate?
a. It wouldbe more expensive forbankstoborrow money
b. It wouldbe more cheaperforbanksto borrow money
c. No effectonborrowingfromRBI
d. None of these
Ans- a
..............................................
The central bank absorbsexcessliquidityfromthe banksusing___.Selectthe bestoption.
a. CRR
b. SLR
c. RepoRate
d. Reverse RepoRate
Ans- d
..............................................
The central bank injectsliquidityintothe bankingsystemusing___. Select the bestoption.
a. CRR
b. SLR
c. RepoRate
d. Reverse RepoRate
Ans- c
..............................................
Creditguarantee forcollateral free loanstoMSEunitsis providedbyCreditGuarantee TrustFund
administeredby___.
a. RBI
b. IDBI
c. SIDBI
d. CCI(Controllerof Capital Issues)
Ans- c
..............................................
Whichprice index isusedinIndiato calculate inflationforpolicyformulation?
a. Consumerprice index
b. GDP deflator
c. Wholesale price index

10. d. Retail price index
Ans- c
..............................................
The EquilibriumPrice isalsoknownas_____.
a. Market price
b. Optimumprice
c. Real price
c. Market-clearingprice
Ans- d
..............................................
What governmentof Indiadoesinopenmarketoperationstosuckmoneyfromthe market?
a. absorbsbonds
b. sellsbonds
c. increasesCRR
d. increasesinterestRate
Ans- b
..............................................
Human developmentIndex(HDI) isdeveloped by____.
a. RBI
b. Central Bank
c. World Bank
d. SEBI
Ans- c
..............................................
Theoryof interestisbasedon____. Selectthe incorrectoption.
a. Investmentdemandfunction
b. The interestrate functions
c. The liquiditypreference function
d. The quantityof money
Ans- b
..............................................
If in market,moneysupplyincreasesandinterestrate isdown,the LM curve will be __.
a. Shiftupand to left
b. Shiftdownandto right
c. Shiftupand to right
d. Shiftdownandto left
Ans- b
..............................................
In economics,fiscal policyhasgottwomain instruments,these are ___.
a. governmentreserveandcapital
b. CRR and SLR
c. Base rate and Bank rate
d. governmentspendingandtaxation(revenue collection)
Ans- d
..............................................
On marketequilibriumdenoteswhichone isnottobe there onequilibrium?
a. The booksare clearedof order
b. Demandersandsuppliersare satisfied

11. c. Priceswill fall
d. All supplyanddemandorderare filled
Ans- c
..............................................
Collateral iswaivedforloansuptoRs ___ to MSE units.
a. 1 lakh
b. 2 lakhs
c. 3 lakhs
d. 5 lakhs
Ans- d
..............................................
Whichsector isalsocalledtertiarysectorinIndia?
a. Agricultural
b. Industry
c. Services
d. External
Ans- c
..............................................
Macro Economicsdoesn'tdeal with____.
a. GDP
b. UnemploymentRates
c. Individual Firms
d. Price Indices
Ans- c
..............................................
Moneyis anythingwhichperformsthe following.Pickupthe oddone
a. A measure of value
b. Mediumof exchange
c. A store of value overtime
d. Measure of prosperity
Ans- d
..............................................
NarrowMoney consistsof
a. Currencywiththe public+ demanddepositswiththe bankingsystem+'other'depositswiththe RBI
b. Currencywiththe public+ time deposits+`other'deposits
c. Time deposits+demanddeposits+'other'depositswiththe RBI
d. Currencywiththe public+ DemandDeposits
Ans- a
..............................................
Who gave wealththeory(definition) of economics?
a. AlfredMarshall
b. Lionel Robbions
c. AdamSmith
d. None of these
Ans- c
..............................................
______ is a measure of level of pricesof all new,domesticallyproducedfinal goodsandservicesinan
economy.

12. a. WPI
b. GDP deflator
c. Price index
d. CPI
Ans- b
..............................................
Shiftsinsupplymeans____.
a. Whenchangesinfactors otherthan goodsownprice affectthe quantitysupplied
b. Whenchangesingoodsown price affectthe quantitysupplied
c. Both a and b
d. None of these
Ans- a
..............................................
Who gave welfare theoryof economics?
a. AlfredMarshall
b. Lionel Robbions
c. AdamSmith
d. None of these
Ans- a
..............................................
EconomicSector reformswere startedinIndiain____.
a. 1983
b. 1985
c. 1991
d. 1981
Ans- c
..............................................
In ____ phase of businesscycle,unemploymentwillbe widespread.
a. Recession
b. Depression
c. Recovery
d. Boom
Ans- a
..............................................
In ____ phase of businesscycle,underemploymentwill be widespread.
a. Recession
b. Depression
c. Recovery
d. Boom
Ans- b
..............................................
Who isconsideredasfatherof ModernEconomics?
a. AlfredMarshall
b. Lionel Robbions
c. AdamSmith
d. None of these
Ans- c
..............................................

13. Factors of productionare categorizedinto___ categories.
a. 2
b. 3
c. 4
d. 5
Ans- c
..............................................
Indicesforfuel groupare announced _____.
a. Daily
b. Weekly
c. Monthly
d. Yearly
Ans- b
..............................................
Whichone is not an economicactivity?
a. Investment
b. Production
c. Consumption
d. None of these
Ans- d
..............................................
PurchasingandsellinggovernmentbondsbyRBIin the secondarymarketisperformedunder___.
a. FRBM
b. MSS
c. OMO
d. TOT
Ans- c
..............................................
WhenRBI purchasesgovernmentbonds,the moneyis____.
a. injectedintothe market
b. suckedfromthe market
c. purchasingbondshasno effectonmoneymarket
d. None of these
Ans- a
..............................................
WhenRBI sellsgovernmentbonds,the moneyis____.
a. injectedintothe market
b. suckedfromthe market
c. purchasingbondshasno effectonmoneymarket
d. None of these
Ans- b
..............................................
By whatpercentof GDP,the FRBMact prescribesthe governmenttosetaceilingonguarantees?
a. 0.1
b. 0.5
c. 0.7
d. 1.5
Ans- b

14. ..............................................
CPImeasurespricesat
a. Wholesale Level
b. ConsumerLevel
c. Retail Level
d. None of these
Ans- c
..............................................
Broad moneyisindicatedby___.
a. M1
b. M2
c. M3
d. M4
Ans- c
..............................................
Whichcombinationiswrongfordefinitionof economics?
a. AlfredMarshall - welfare definition
b. Lionel Robbions - Scarcitydefinition
c. AdamSmith - wealthdefinition
d. AlfredMarshall - wealthdefinition
Ans- d
..............................................
In demandcurve,quantityandpricesare.......related
a. Directly
b. Inversely
c. Indirectly
d. Market
Ans- b
..............................................
CSO (Central Statistical Organization) classifiesthe industrial sectorinto___ segments.
a. 2
b. 3
c. 4
c. 5
Ans- b
..............................................
The ___ act prohibitsdeficitfinancing.
a. CompaniesAct1956
b. DEPOSITINSURANCEANDCREDIT GUARANTEE CORPORATION ACT,1961
c. THE BANKINGREGULATION ACT, 1949
d. FRBMAct 2003
Ans- d
..............................................
The way(s) to compute GDPis / are ___.
1. Expenditure wise
2. Income wise
3. Product wise
a. 1 and 2

15. b. 2 and 3
c. 3 and 1
d. All of 1, 2 and 3
Ans- d
..............................................
The factors of productionare ___.
1. land
2. labour
3. capital
4. entrepreneur
a. 1 and 2
b. 2 and 3
c. 1, 2 and 3
d. All of 1, 2, 3 and 4
Ans- d
..............................................
The formula"C + I + G + (X - M)",(where Cstandsfor consumption,Iforgross investment,Gfor
governmentspending,XforexportsandM for imports) isknownas___ methodandis usedtocalculate
___.
a. income,GDP
b. expenditure,GNI
c. income,GNP
d. expenditure,GDP
Ans- d
..............................................
Whichof the followingisnotincludedundergrossinvestment?
a. purchase of newmachinery
b. purchase of software
c. investmentsonfinancial products
d. buyinggoodsandservices
Ans- c
..............................................
Whichof the followingdoesnotinclude governmentspending?
a. transferpaymentslike social securityorunemploymentbenefits
b. salariesof publicservants
c. purchase of weaponsforthe military
d. None of these
Ans- a
..............................................
Whichof the followingequationsiscorrect?
a. GDP at factor cost = GDP at marketprices - indirecttaxes - subsidies
b. GDP at factor cost = GDP at marketprices - indirecttaxes+subsidies
c. GDP at factorcost = GDP at market prices+ indirecttaxes - subsidies
d. GDP at factor cost = GDP at marketprices+ indirecttaxes+ subsidies
Ans- b
..............................................
Real GDP is alsoknownas ___.
a. GDP at current price

16. b. GDP at constantprice
c. GDP at variable price
d. None of these
Ans- b
..............................................
Nominal GDPisalso knownas___.
a. GDP at current price
b. GDP at constantprice
c. GDP at variable price
d. None of these
Ans- a
..............................................
Calculatingtoday'soutputatyesterday'sprice reflects___GDP.
a. real
b. nominal
c. virtual
d. None of these
Ans- a
..............................................
Calculatingtoday'soutputattoday's price reflects___ GDP.
a. real
b. nominal
c. virtual
d. None of these
Ans- b
..............................................
Whichof the followingdoesnotreflectthe real growthinGDP?
a. Calculatingtoday'soutputattoday's price
b. Calculatingtoday'soutputatyesterday'sprice
c. GDP at constantprice
d. Real GDP
Ans- a
..............................................
Whichis a more accurate measure tool foran export - orientedeconomy?
a. GDP
b. GNP
c. GNI
d. All of these
Ans- b
..............................................
Whichphase of businesscycle isreferredtoas“crisis”?
a. Recession
b. Depression
c. Recovery
d. Boom
Ans- a
..............................................

17. Laissez-faireeconomyis____.
a. The extreme case of amarketeconomy
b. The extreme case of a commandeconomy
c. The extreme case of a mixedeconomy
d. None of these
Ans- a
..............................................
Forcesbehindthe supplycurve
a. Cost of production
b. Technological advances
c. Governmentpolicies
d. All of the above
Ans- d
..............................................
Supplycurvesrelatesquantitysuppliedto___.
a. Supply
b. Demand
c. Price
d. Demand
Ans- c
..............................................
Accordingto ___, economicsis the science whichstudieshumanbehaviorasrelationshipbetweenends
and scarce meanswhichhave alternate uses.
a. AlfredMarshall
b. Lionel Robbions
c. AdamSmith
d. None of these
Ans- b
..............................................
Accordingto ___, the subjectmatterof economicsisthe studyof how wealthisproducedand
consumed.
a. AlfredMarshall
b. Lionel Robbions
c. AdamSmith
d. None of these
Ans- c
..............................................
Accordingto ___, the economicsisa studyof mankindinthe ordinarybusinessof life.
a. AlfredMarshall
b. Lionel Robbions
c. AdamSmith
d. None of these
Ans- a
..............................................
The branch of economicsthatstudieshowhouseholdsandfirmsmake decisionstoallocate limited
resourcesisknownas___.
a. Macroeconomics
b. Microeconomics

18. c. Both of these
d. None of these
Ans- b
..............................................
____ isa branch of economicsthatisconcernedwiththe overall performance of the economy.
a. Macroeconomics
b. Microeconomics
c. Both of these
d. None of these
Ans- a
..............................................
The economyinwhichindividualsandprivate firmsmake the majordecisionsaboutproductionand
consumptioniscalleda____.
a. Market economy
b. Capitalisticeconomy
c. Socialisticeconomy
d. Eitherof a andb
Ans- d
..............................................
The economy,inwhichthe governmentdoesnotinterfere atall ineconomicdecisions,iscalleda____
economy.
a. Market economy
b. Capitalisticeconomy
c. Laissez-faireeconomy
d. Commandeconomy
Ans- c
..............................................
The economy,inwhichthe governmentmakesall importantdecisionsaboutproductionand
distribution,iscalleda____ economy.
a. Laissez-faireeconomy
b. Socialisticeconomy
c. Commandeconomy
d. Eitherof b or c
Ans- d
..............................................
Changesinthe level andcompositionof taxationandgovernmentspendingcanhave impactonthe
followingvariablesinthe economy.Pickupthe oddone.
a. Aggregate demandandthe level of economicactivity
b. The patternof resource allocation
c. The properutilizationof funds
d. The distributionof income
Ans- c
..............................................
The Fiscal ResponsibilityandBudgetManagementAct(FRBMAct),a committee setupinJanuary2000,
was headedby____.
a. M Narasimham
b. Dr. E A S Sarma
c. Mr R Raghawan

19. d. Mr A.K. Choudhary
Ans- b
..............................................
Whichof the followingstatementsistrue about‘Inflation’?
a. A rise inthe general level of prices
b. Leadsto fall inpurchasingpower
c. Both a and b
d. None of the above
Ans- c
..............................................
An increase ingovernmentexpenditure ortransferpaymentswill shiftthe IScurve ____.
a. To right
b. To left
c. No change
d. Downwards
Ans- a
..............................................
In whichstage ideal workerare come forwardto workon low wages.
a. Recession
b. Depression
c. Recovery
d. Boom
Ans- c
..............................................
MODULE-B
If there is a indirectrelationshipbetweenrainfall &yieldof cropsthen
a. yieldishigherif rainfall isless
b. yieldislowerif rainfall isless
c. yieldishigherif rainfall ishigher
d. none of the above
Ans- a
.............................................
If a = 2 , b = 1 , independentvariable=4 thendependentvariable foranestimatinglineis
a. 2
b. 4
c. 6
d. none of the above
Ans- c
............................................
If the estimatingequationisY= a – b X. whichof the followingistrue
a. the y interceptisb
b. slope of line isnegative
c. there isinverse relationship
d. b & c
Ans- d

20. .............................................
Mr.Amitpurchaseda propertyforRs.8 lac. He has beenassuredtogetRs 10 lac, afterone yearat 9%
interestrate.Whatis the netpresentvalue of the propertybasedonthisassuredreturn?
a. Rs. 117400
b. Rs.118300
c. Rs. 119200
d. Rs.120100
Ans- a
.............................................
Mr. Raj decidedtodepositRs.5000 everyyear(atendof the year) for10 years.How much amt he will
getif the interestrate of is5% p.a.?
a. Rs.62890
b. Rs.62980
c. Rs.68920
d. Rs.69820
Ans- a
.............................................
In a normallydistributedpopulation,the samplingdistributionof the mean
a. Is normallydistributed
b. Has a meanequal to the populationmean
c. Has a standarddeviationequal tothe populationstandarddeviationdividedbythe square rootof the
sample size
d. All of the above
Ans- d
.............................................
MR. Ramsonsisexpectedtojoinaprofessionnal course in03 yrs fromnow and he wouldneedasum of
Rs 3 lac at that time as admissionfee. MrRam wantsto save the amt inannual installmentsand
prevailinginterestratesare 5%. Howmuch amt he shoulddepositperannum?
a. 95163
b. 95631
c. 953631
d. 96531
Ans- a
.............................................
Suppose that,fora certain population,sigmaxbariscalculatedas20 whensamplesof size 25 are taken
and as 10 whensamplesof size 100 are taken.A quadruplingof sample size,then,onlyhalvedsigma
xbar.We can conclude thatincreasingsample size is
a. Alwayscost-effective
b. Sometimescost-effective
c. NeverCost-effective
d. None of these
Ans- c
.............................................
Work out the discountfactorfor Re 1 to be receivedatthe endof twoyr withprevalent8% .
a. 0.890
b. 0.873
c. 0.857
d. 0.842

21. Ans- c
.............................................
An investmentat10% is compoundedmonthly,whatshall be the effectinterstrateforthis.
a. 10%
b. 10.25%
c. 10.47%
d. 10.5156%
Ans- c
............................................
A console bondof Rs 10000 is issuedat6%. Couponcurrentinterstratesand9%. Findout the current
value of the console bond.
a. Rs.7660
b. Rs.6760
c. Rs.6670
d. Rs.6706
And- c
.............................................
In whichof the situationswouldσ¯x =σnotbe the correct formulaforSampling√n
a. infinite population
b. finite populationwithreplacement
c. finite populationwithoutreplacement
d. none of the above
Ans- c
.............................................
What doesthe Central tendencytheoremstate ?
a. as the sample size increasesthe samplingdistributionof the meanwillapproachnormality
irrespectiveof the shape of the populationdistribution
b. the meanof the samplingdistributionof the meanwill equal the populationmeanevenif the
populationisnotnormal
c. usesof sample statisticstomake inferencesof the the populationparameterswithoutknowledge of
the of the frequencydistribution
d. all of the above
Ans- d
.............................................
Out of the following,which3measuresare usedincorrelationanalysis:
a. standarderror
b. covariance
c. standard deviation
d. coefficientof correlation
e.coefficientof determination.
1) a, b, c
2) a, c, e
3) b, d, e
4) b, c, e
Ans- 3
.............................................
The value of a statistictendstowardsthe value of the populationassize increases.Whatisitsaidto be ?
a. sufficient

22. b. consistent
c. efficient
d. unbiased
Ans- b
.............................................
In a normal distribution95.5%of all the sample statisticsare within_____standarderrors of the
populationparameter
a. ± 5%
b. ± 2.25%
c. ± 3%
d. none of the above
Ans- b
.............................................
The value of r2 is 0.49, thencoefficientof correlationis
a. 0.49
b. 0.7
c. 0.07
d. cannotbe determined
Ans- d
.............................................
If the dependentvariableincreaseswiththe independentvariable thenthe coeff.of correlationis
a. 0 to -1
b. 0 to – 0.5
c. 0 to -2
d. none of these
Ans- d
.............................................
The methodof leastsquaresfindsthe bestfitline that_______ the error betweenobserved&
estimatedpointsonthe line
a. maximises
b. minimizes
c. reducesto zero
d. b & c
Ans- b
.............................................
If sign of r is negative thenitindicates
a. directrelationshipbetweenX& Y
b. indirectrelationshipbetweenX&Y
c. inverse relationshipbetweenX&Y
d. b or c
Ans- d
.............................................
For Y = a - b X we say that relationshipbetweenYand Xis
a. direct& linear
b. indirect&linear
c. indirect& curvilinear
d. direct& curvilinear
Ans- b

23. .............................................
A time seriesof annual datawill containwhichof the followingcomponents
a. seculartrend
b. cyclical fluctuation
c. seasonal variation
d. a & b
Ans- d
.............................................
Removingthe highest&lowestactual-to-movingaverage valueswhencomputingseasonal index for
annual data reduces
a. extreme cyclical variations
b. seculartrend
c. seasonal variations
d. all of these
Ans- a
............................................
The repetitive movementaroundatrendline ina 4- monthperiodisbestdescribedby
a. seasonal variation
b. seculartrend
c. cyclical fluctuation
d. irregularvariation
Ans- a
.............................................
The resultof discardingextreme valuesbefore averagingiscalled________ .
a. residual mean
b. modifiedmean
c. extreme mean
d. none of the above
Ans- b
.............................................
For a givenyearif an adjustedseasonal index is>100 thenfor some otherperioditis
a. < 100
b. > 100
c. = 100
d. none of the above
Ans- a
.............................................
Removingthe highest&lowestactual-to-movingaverage valueswhencomputingseasonal index for
annual data reduces
a. extreme cyclical variations
b. seculartrend
c. seasonal variations
d. all of these
Ans- a
.............................................
The repetitive movementaroundatrendline ina 4- monthperiodisbestdescribedby
a. seasonal variation
b. seculartrend

24. c. cyclical fluctuation
d. irregularvariation
Ans- a
.............................................
The resultof discardingextreme valuesbefore averagingiscalled________ .
a. residual mean
b. modifiedmean
c. extreme mean
d. none of the above
Ans- b
.............................................
From the followingdataidentifythe correctalternative
X 10 20 30 40 50
Y 20 35 50 75 90
a. positive &linear
b. positive &curvilinear
c. negative &linear
d. negative &curvilinear
Ans- b
.............................................
In the followingXandY are independent&dependent variables.Readthe figuresandanswer.
X 1 2 3 4
Y 51312 25
a. there isno correlationbetweenX&Y
b. there is+ve correlationbetweenX& Y
c. there is –ve correlationbetweenX&Y
d. there partial correlationbetweenX&Y
Ans- d
.............................................
In a studyit wasnoticedthataverage heightof sonsof tall fathersislessthanthat of the fathersand
vice versa. Thisis due to
a. extension
b. progression
c. regression
d. hypertension
Ans- c
.............................................
Co-efficientof determination=r2 = explainedvariation.Total variation
Co-efficientof correlation=r
while rexplainscompletelythe relationshipbetweenthe variables,r2doesnot,because
a. r2 islessthan1
b. r2 isalways+ve
c. r2 is always -ve
d. r2 as performulacannotexplaindirection
Ans- d
............................................
A toymanufacturerproducesbicycles(x)&scooters(y).
Readthe followingdataandanswer:

25. Max. availabilityof machinesis12hrs and x takes2 hrs. and y takes4 hrs to make.The total cost of x & y
isRs. 400 & 12000 respectively.The sale pricesof x & y are Rs. 700 & 16000 respectively.The amount
available fordailyproductionisRs.28000. Labour available isfor16 hrs. Labourrequirementforx & y is
4 & 12 hrs respectively
Choose the correct optionfromeachof the following.
Productionconstraint
a. x + 2y ≤ 6
b. 4x + 2y ≤ 12
c. 2x + y ≤ 6
d. 9x = 6y ≤ 12
Ans:aavaiaablityofmachines2x+4y=12 =x+2y<-6
Financial constraint
a. 4x + 120y ≤ 280
b. 4x + 12y ≤ 28
c. 12y + 4x ≤ 28
d. 120x + 4y ≤ 280
Ans- e cost of manufacturing400x+12000y=28000 = 4x+120y<-280
Labour constraint
a. 12x + 4y ≤ 16
b. x + 3y≤ 4
c. 3y + x≤ 4
d. 4x + 12y ≤ 16
Ans- d labourhours= 4x+12y<-16
Profitequation
a. 7x+ 160y
b. 160x +7y
c. 700x + 1600y
d. 70x + 160y
Ans- 700x+16000y =7x+160y
.............................................
the trendequationisY = a + b X
If N = 7, ΣY = 619, ΣX = 0, ΣXY = 141, ΣX2 = 28
Answerthe following
1.Value of a is
a. 66.27
b. 85.55
c. 88.43
d. 74.27
Ans- c
2.Value of b is
a. 2.67
b. 5.04
c. 3.45
d. 5.75
Ans- b
3.EquationY = a + bX is
a. Y = 66.27 + 2.67X
b. Y = 85.55 + 3.45X

26. c. Y = 88.43 + 5.04X
d. Y = 85.55 + 5.75X
Ans- c
4.The monthlytrend eqn.is
a. Y = 5.52 + 0.2225X
b. Y = 7.37 + 0.2875X
c. Y = 7.37 + 0.035X
d. Y = 7.13 + 0.40X
Ans- c
.............................................
In the relationshipbetweenheightandeducational qualification
a. the heightisindependentandeducationisdependentvariable
b. the heightisdependentandeducationisindependentvariable
c. there isinverse relationshipbetweenthe two
d. none of the above
Ans- d
.............................................
In givenQrtly.datathe firststepincomputingseasonal indexiscalculating
a. 4 qtr movingaverage
b. discardhighestandlowestvalues
c. 4 qtr. Movingtotal
d. none of the above
Ans- c
.............................................
For a data of 8 halfyearperiodsthe code forthe 7th half is
a. 2
b. 3
c. 6
d. 5
Ans- d
.............................................
Whencodingfor oddnumberof periods.The followingisdone
a. subtract eachvalue fromthe smallestvalue
b. subtracteach value fromthe highestvalue
c. subtract eachvalue fromthe middlemostterm
d. none of the above
Ans- c
.............................................
PresentValue isdefinedas:
a. Future cash flowsdiscountedtothe presentatan appropriate discountrate
b. Inverse of future cashflows
c. Presentcashflowcompoundedintothe future
d. None of the above
Ans- a
.............................................
If the presentvalue of the cashflowXis Rs.200, and the presentvalue cashof the flow Y isRs.150, than
the presentvalue of the combinedcashflowis:
a. 200

27. b. 150
c. 50
d. 350
Ans- d
.............................................
If the presentvalue ofRs.444tobe paidat the endof one yearisRs.400, whatisthe one yeardiscount
factor?
A.0.909
B.1.11
C.0.11
D.None of the above
Ans- a
.............................................
If you investRs.100,000 todayat 12% interestrate forone year,what isthe amount youwill have atthe
endof the year?
A.Rs.90,909
B.Rs.112,000
C.Rs.100,000
D.None of the above
Ans- b
.............................................
What issamplingforgroupswithconsiderable variationwithinbutsimilartoeachothercalled?
a. cluster
b. stratified
c. systematic
d. random
Ans- a
.............................................
If inflationrate ishigherin aneconomy,the discountrate shouldgenerally,
a. Be lower
b. Be higher
c. Be Stable
d. Be fluctuating
Ans- B
.............................................
A cash flowthatis expectedtogrowata constantrate forever,iscalled.
a. Annuity
b. Perpetuity
c. Growingannuity
d. Growingperpetuity
Ans- growingperpetuity
.............................................
Whichof the followingisnota methodof selectingsamplesfromapopulation?
a. Judgementsampling
b. Randomsampling
c. Probabilitysampling
d. None of these
Ans- c

28. .............................................
Choose the pairof symbolsthatdoesn'tcomplete thissentence: —isaparameter,whereas –is a
statistic.
a. N, g
b. y,s
c. N, n
d. All of these
Ans- a
.............................................
A bondthat has nomatuarityand paysa fixedcoupon(orrate of interest) iscalled...
a. Long termbond
b. Perpetual bonds
c. Console bonds
d. Non-repayable bonds
Ans:C
.............................................
In randomsampling,we candescribe mathematicallyhow objective ourestimatesare.Whyisthis?
a. We alwaysknowthe chance that any populationelementwill be includedinthe sample
b. Everysample alwayshasan equal chance of beingselected
c. All the samplesare exactlythe same size andcan be counted
d. botha and b
Ans- d
............................................
A constantflowpaidor receivedatregulartime intervalsisknownas...
a. Annuity
b. Perpetuity
c. Growingannyuity
d. Growingperpetuity
Ans- a
.............................................
A fundwhichiscreatedby companiestomake paymentof balloonrepaymentloansbyregularannual
contributionstohave adequate fundsatthe endof the period,whenrepaymentfailsdue iscalled...
a. reserve fund
b. balloonfund
c. sinkingfund
d. repaymentfund
Ans- c
.............................................
An investmentat12% interestrate compoundedmonthlyisequal toanannual rate of
a. 12.68%
b. 12.36%
c. 12%
d. None of the above
Ans- a
.............................................
A 5-yearGovt. bondwitha couponrate of 8% hasa face value of 1000. What isthe annual interest
payment?
a. 80

29. b. 40
c. 100
d. None of the above
Ans- a
.............................................
If A investsRupees100 at 7per centinterestrate for3 years,whatwill be the value atthe endof 3
years?
a. 125.20
b. 122.50
c. 152.50
d. 120.50
Ans- b
............................................
A constantflowpaidor receivedatregulartime intervalsforeverisknownas...
a. Annuity
b. Perpetuity
c. Growingannyuity
d. Growingperpetuity
Ans- b
.............................................
The dispersionamongsample meansis,the dispersionamongthe sampleditemsthemselvesbecause
a. Each sample is smallerthanthe populationfromwhichitisdrawn
b. Verylarge valuesare averageddownandverysmall valuesare averagedup
c. The sampleditemsare all drawnfromthe same population
d. None of these
Ans- b
.............................................
The central limittheoremassuresusthatthe samplingdistributionof the mean
a. Is alwaysnormal
b. Isalwaysnormal for large sample sizes
c. Approachesnormalityassample size increases
d. Appearsnormal onlywhenN isgreaterthan1,000
Ans- b
.............................................
I start savingRs.1 lakhfor the next4 years.If the interestrate is10 percentpa,how muchwill Iget at
the endof 4 years?
a. Rs. 4,46,100
b. Rs.4,61,400
c. Rs. 4,64,100
d. Rs.4,14,600
Ans- c
.............................................
Moneyhas a time value isshownbywhichof the followingconcept.
a. Market value
b. Face value
c. PresentValue
d. b& C
Ans- c

30. .............................................
A borderpatrol checkpointthatstops everypassengervanisusing
a. Simple randomsampling
b. Systematicsampling
c. Stratifiedsampling
d. Complete enumeration
Ans- d
.............................................
Value todayof Re.1 to be receivedinfuture iscalled
a. Presentvalue
b. Compoundedfactor
c. Discountfactor
d. Yieldfactor
Ans- c
.............................................
Suppose thata populationwithN isequal to144 hasp is equal to24. What is the meanof the sampling
distributionof the meanforsamplesof size 25?
a. 24
b. 2
c. 4.8
d. Cannotbe determinedfromthe informationgiven
Ans- a
.............................................
A loanfor whichonlyinterestispaidduringitsrepaymentperiodwhilethe principalisrepaidatthe end
iscalled
a. Term loan
b. Interstdemandloan
c. Lumpsumpaymentloans
d. Balloonrepaymentloan
Ans- d
.............................................
A quarterlyrepaymentsof aloan carry an interestrate of 8 % perannum.What isthe effective annual
interestrate?
a. 8.4 %
b. 8.2 %
c. 8.3 %
d. 8.5 %
Ans- b
.............................................
The central limittheorem
a. Requiressome knowledge of the frequencydistribution
b. Permitsusto use sample statisticstomake inferencesaboutpopulationparameters
c. Relatesthe shape of a samplingdistributionof the meantothe manof the sample
d. Requiresasample tocontainfewerthan30 observations
Ans- b
............................................
Mr.Ram wants to have Rs 20000 aftera year.How much he shoulddepositinabank to getthisamount
if the prevailingrate of interestis9%?

31. a. 17896
b. 18104
c. 18224
d. 18348
Ans- d
.............................................
CAIIB-ABM-MOD-B
In RandomSampling,we pickupone,keepitawayandthenpick another fromthe remaining.Thisis
called...
a. Samplingwithreplacement
b. Simple randomsampling
c. Samplingwithoutreplacement
d. None of the above
Ans- c
.............................................
A populationhavingastatedorlimitedsize iscalledas...
a. LimitedPopulation
b. Infinite Population
c. Finite Population
d. unlimitedPopulation
Ans- c
.............................................
Seasonal variationis...
a. Repetitive
b. Predictable
c. Both a and b
d. None of the above
Ans- c
.............................................
The probabilitythatwe associate withaninterval estimate iscalled...
a. Estimate level
b. ConfidenceLevel
c. ProbabilityLevel
d. None of the above
Ans- b
.............................................
As yousettighterconfidence interval,youwouldgettoa ...level
a. higher
b. lower
c. eitherhigherorlower
d. none of the above
Ans- b
.............................................
In RandomSampling,we pickupone,we note itdown,putit back withthe remainingandpickthe next
one.Thisiscalled...
a. Samplingwithreplacement
b. Simple randomsampling
c. Samplingwithoutreplacement

32. d. None of the above
Ans- a
.............................................
The standard errorof the meanfor a sample size of twoor more is
a. Alwaysgreaterthanthe standarddeviationof the population
b. Generallygreaterthanthe standarddeviationof the population
c. Usually, the standarddeviationof the population
d. None of these
Ans- c
.............................................
A higherdiscountrate will leadto...
a. A higherpresentvalue of the future cashflow
b. Lowerpresentvalue of the future cashflow
c. No change inpresentvalue of the future cashflow
d. Nochange
Ans- b
.............................................
A processbywhichpresentcashfloware convertedintotheirfuture value iscalled.
a. compounding
b. discounting
c. converting
d. findingpresentvalue
Ans- b
.............................................
‘Asthe outputincreases,the productivityperworkerincreases.’Whatrelationshipdoesitleadto?
a. directlinearrelationship
b. curvilinearrelationship
c. inverse relationship
d. none of the above
Ans- b
.............................................
What are samplinggroupswhichare verysimilarwithinbutdissimilarwithoutare called?
a. cluster
b. stratified
c. systematic
d. random
Ans- b
.............................................
If the maturityof a bond islongintothe future the interest rate ishigher.Why?
a. longertermmaturityismore sensitive toprice fluctuationthanshorterterm
b. the attractivenessof longertermisrelatedtointerestonly
c. longertermbondsare generallyissuedbyinstitutionsof lesserrating
d. longertermmaturityislesssensitive tofluctuationthanshorterterm
Ans- a
.............................................
What variationdoesmovingaverage methodeliminate ?
a. seasonal
b. Cyclical

33. c. Irregular
d. Seculartrend
Ans- a
.............................................
What isa scatterdiagram ?
a. diagramwhichscattersall elementsof the variable.
b. A graphicrepresentationof the relationshipof the variables
c. Helpsplotobservedvalues
d. b & c
Ans- d
.............................................
whichisan example of forsinkingfund?
a. perpetuity
b. annuity
c. gratuity
d. none of the above
Ans- b
.............................................
If a standarderror of a statisticislessthanthat of anotherthenwhatis the formerissaidto be.
a. efficient
b. unbiased
c. consistent
d. sufficient
Ans- a
.............................................
What isrepaymentof entire loanprincipal atthe endof the loanperiodcalled?
a. balloonpayment
b. compounded payment
c. annuity
d. termpayment
Ans- a
............................................
What isthe rule of 72 ?
a. 12 timestable
b. rule forcalculatingfuture cashflows
c. rule for compoundingpresentcashflows
d. rule forknowinghowquicklymoneydoubles
Ans- d
.............................................
If pricesdouble,whathappenstoreal value of rupee?
a. remainssame
b. doubles
c. halves
d. changesinunlike proportions
Ans- c
.............................................
Whichmethodwhichhelpsdrawa line betweenthe setof scatteredpoints
a. regressionmethod

34. b. correlationmethod
c. leastsquare method
d. leastfitmethod
Ans- c
.............................................
What isa zerocouponbond?
a. there isgainonlyin price
b. gainincoupon
c. no gainat all
d. none of these
Ans- a
.............................................
MODULE-C
The system’scostsare projectedatwhichstage of the SDLC?
a. PlanningandAnalysis
b. Design
c. Implementation
d. OperationandMaintenance
Ans- b
.............................................
Whichof the followingisnotthe essential characteristicof the strategictypesof information?
a. Simulated“whatif”informationof ashort-termnature
b. Competitive actions
c. Demographicstudies
d. Customeractions
Ans- a
.............................................
Whichof the followingisnotthe essential characteristicof DecisionSupportSystem?
a. Outputdirectedtoorganizationpersonnel atall levels
b. Comprehensivedatabase
c. Adaptive systemovertime
d. None of these
Ans- d
.............................................
In projectmanagement,whichof the followingdoesnotshow precedence relationshipamongthe tasks
and milestonesof the project?
a. Gantt Chart
b. PERT
c. CASE Tools
d. None of these
Ans- a
.............................................
Whichof the followingisnotthe layerindata warehouse architecture?
a. External database layer
b. Metadata layer
c. Data staginglayer
d. None of these
Ans- d

35. .............................................
Whichof the followingisthe approachthat a data miningtool uses?
a. Association
b. Classification
c. Clustering
d. All of the above
Ans- d
.............................................
In MICR howmany digitsare available foramount?
a. 13
b. 11
c. 10
d. 9
Ans- d
.............................................
Real tile grosssettlementsystemis
a. Netsettlementsystem
b. Designated–time settlementsystem
c. Designated-timenetsettlementsystem
d. None of these
Ans- d
.............................................
What isthe message flowstructure inourRTGS System?
a. V
b. Y
c. L
d. T
Ans- b
.............................................
Whichof the followingisthe queue processingandreorderinginRTGS?
a. FIFO
b. BypassFIFO
c. FIFOwithprioritization
d. All of the above
Ans- d
.............................................
Whichof the followingisnotcorrect forSFMS?
a. Uses Textmessages
b. UsesserversigningPKCs
c. Uses serverencryptionPKCs
d. Access can be restrictedtoHTTPS
Ans- a
.............................................
Whichof the followingisnotthe type of smart cards?
a. StoredValue Cards
b. Re-loadable anddisposable cards
c. Closedandopenstoredvalue cards

36. d. None of these
Ans- d
.............................................
In RTGS, IDL is
a. Intra Day Liquidity
b. Inter-bankDebitList
c. InstrumentDebitList
d. None of these
Ans- a
.............................................
FEDWIRE is a
a. Netsettlementsystem
b. Gross Settlementsystem
c. Deferrednetsettlementsystem
d. Deferredgrosssettlementsystem
Ans- b
.............................................
CHIPSis a
a. Netsettlementsystem
b. Gross settlementsystem
c. settlesinforex currencyonly
d. a & c both
Ans- a
.............................................
StructuredFinancial MessagingSystem(SFMS) isfor
a. Inter-bankmessaging
b. Intra Bankmessaging
c. RTGS
d. All of the above
Ans- d
.............................................
Electronically,customers fundcanbe transmittedacrossthe bankby
a. CENTRALISEDBANKINGSYSTEM
b. SFMS
c. RTGS
d. ATMS
Ans- c
.............................................
Whichof the followingisnotthe basicobjective of the SystemAudit?
a. Safeguardingassets
b. Maintainingprocessintegrity
c. Maintainingdataintegrity
d. None of these
Ans- d
.............................................
Whichof the followingfunctionalitycanbe accomplishedbygeneralizedauditsoftware?
a. Evaluatingthe qualityof data
b. Evaluatingthe qualityof systemprocessing

37. c. Analytical review
d. All of the above
Ans- d
.............................................
Whichof the followingtechnique isusedforconcurrentaudit?
a. IntegratedTestfacility(ITF)
b. SystemControl AuditReview File (SCARF)
c. ContinuousandIntermittentSimulation(CIS)
d. All of the above
Ans- d
.............................................
Thisemphasizesonthe patternof (mutual) expectations.
a. Job
b. Task
c. Role
d. Work
Ans- c
.............................................
Who calledworkersasVital machines?
a. HaneryFoyal
b. PeterDuker
c. EltonMayo
d. CharlesBabbage
Ans- b
.............................................
EstablishingTrainingandDevelopmentsystemaspartof the HRD effortsdoesn'tinvolve...
a. identificationof trainingneeds
b. conductingthe training
c. evaluationof training
d. None of these
Ans- d
.............................................
Whichis a basic elementof ajob ?
a. Job
b. Task
c. Role
d. Work
Ans- b
.............................................
Who iscalledas the founderof scientificmanagementapproach?
a. CharlesBabbage
b. EltonMayo
c. Fredricktylor
d. PeterDuker
Ans- c
.............................................
Whichlabel can be appliedforthe purpose of facilitatingcommunication,toimprove the performance

38. of individual onhispresentjob?
a. Training
b. Education
c. Development
d. None of the above
Ans- a
.............................................
Whichtheoriesstate that the learnerispassive inthe processof learning?
a. OrganismicTheories
b. MechanisticorBehaviouristTheories
c. Cognitive Theories:
d. HumanisticTheories
Ans- b
............................................
The concept of howthorne studieswasgiven by...
a. Fredricktylor
b. CharlesBbbage
c. EltonMayo
d. PeterDuker
Ans- c
.............................................
Whichencompassessocio-psychological relationship?
a. Job
b. Task
c. Role
d. Work
Ans- d
.............................................
Whichtheoriesequate manwithhisbrain?
a. OrganismicTheories
b. MechanisticorBehaviouristTheories
c. Cognitive Theories
d. HumanisticTheories
Ans- c
.............................................
Objectivesof HRMis mainlyrelatedto understand...
a. the fundamentalsof HRM.
b. CustomerandStaff behaviour.
c. The comprehensive perspectiveof HRM& relationshipwithHRD.
d. The role of HR professionals&developmentof HRfunctions.
Ans- b
.............................................
Whichis true regardingfunctions&structure of HRM & HRD ?
a. There isno conflictbetweenthe two.
b. There isdifferenceonlyinthe approachandemphasis.
c. HRM is the sub-systemofHRD
d. HRM dealsroutine functions&HRD functionsemphasize onchange managementprocess.
Ans- c

39. .............................................
Whichtheoriesholdthatlearningoccursonlywhenlearnershave the 'freedomtolearn'?
a. OrganismicTheories
b. MechanisticTheories
c. Cognitive Theories:
d. BehaviouristTheories
Ans- a
.............................................
Attitude canbe classifiedintothree basiccomponents.Whichisnotone amongthem?
a. Emotional
b. Formal
c. Informational
d. Behavioural
Ans- b
.............................................
Whichlabel can be appliedforthe purpose of facilitatingcommunication,inanindividual'spreparation
for an identifiedjobinanot-toodistant
future ?
a. Training
b. Education
c. Development
d. None of the above
Ans- b
.............................................
Whenthe adulteducationisorganizedwiththe model (forchildren),itisknownas.....
a. Childmodeling
b. Andragogy
c. Pedagogy
d. paragogy
Ans- c
.............................................
Transferof learningtoworkplace take place at whichlevel of evaluationof training?
a. ReactionLevel
b. LearningLevel
c. The behaviorlevel
d. Functionlevel
Ans- c
.............................................
Whichlabel can be appliedforthe purpose of facilitatingcommunication,inlearningforgrowthof the
individualnotrelatedtoaspecificpresentorfuture job?
a. Training
b. Education
c. Development
d. None of the above
Ans- c
.............................................
Who wasan earlyadvocate of "Divisionof labour"?
a. Fredricktylor

40. b. CharlesBabbage
c. EltonMayo
d. RobertOwen
Ans- b
.............................................
Whichis nota sub-systemof HRM?
a. Administration
b. Maintenance
c. Credit
d. Development
Ans- c
.............................................
Whichof the followingindustriesinIndiawasthe firstto use the term"Personnel Officer"?
a. Insurance
b. Banks
c. Chemical andPharmaceutical
d. Steel
Ans- c
.............................................
Whichis saidto be the beginningstage of career?
a. Mentor
b. Apprentice
c. Colleague
d. Sponsor
Ans- b
.............................................
Accordingto Dalton,ThomsonandPrice,careerrolesare dividedinto...categories.
a. 2
b. 3
c. 4
d. 5
Ans- c
............................................
Accordingto Eric Berne,there are typically...typesof egostatesintransactional analysis.
a. 3
b. 4
c. 5
d. 6
Ans- a
.............................................
One'sbelief aboutwhoisresponsible for the eventinone'sliferefersto...
a. Adultegostate
b. change catalyst
c. personal efficacy
d. Locus of Control
Ans- d
.............................................

41. Whichstage of careerrolessignifiesthe beginningof complex functions?
a. Apprentic
b. colleague
c. Mentors
d. Sponsors
Ans:c
.............................................
Mr. XYZ isworkingasGM of ABC co. He is trustworthy,opentoother'sideas,acceptsuggestions,have
betterself awareness,receivedfeedbackfromothersandmake more andmore disclosures.He will
come in whichstage of self awareness?
a. ARENA
b. BLIND
c. CLOSED
d. BLIND
Ans- a
.............................................
The concept of howthorne studieswasgivenby...
a. Fredricktylor
b. CharlesBbbage
c. EltonMayo
d. PeterDuker
Ans- c
.............................................
Who had notcontributedmuchtowardsthe dimensionsof Motivation?
a. ChirisArgyris
b. HaneryFoyal
c. EltonMayo
d. AbrahamMaslow
Ans- b
.............................................
MODULE-D
As perRBI guidelines,Commercial banksare requiredtolend......of prioritysectortoweakersections.
a. 10%
b. 18%
c. 25%
d. 32%
Ans- c
.............................................
Advancesonor after01.04.2013 for purchase and distributionof fertilisers,pesticides,seedsetc.upto
Rs....are coveredunderprioritysector.
a. 25 Lakhs
b. 50 Lakhs
c. 1 Crore
d. 5 Crores
Ans- d
.............................................
Statutorycorporationsare controlledbywhichact for creditmanagement?

42. a. Indiancontract act
b. Companyact
c. Acts that createdthem
d. Indianpartnershipact
Ans- c
.............................................
whichone of the followingisnota nonfundbase credit?
a. Letterof credit
b. Bill discounting
c. Co-acceptance of bills
d. Forwardcontracts
Ans- b
.............................................
As perRBI latestguidelines,loanstocooperativesocietiesof farmersfordisposingof the produce of
membersuptoRs....are coveredunder prioritysector.
a. 25 Lakhs
b. 50 Lakhs
c. 1 Crore
d. 5 Crores
Ans- d
.............................................
Industries&businessenterpriseswhose turnoverforthe accountingperiodexceedsRs.50crore has to
submitsegment-wise reportingasper...
a. AS-3
b. AS-7
c. AS-17
d. AS-21
Ans- c
.............................................
No penal interestshouldbe chargedtoborrowersof loanunderprioritysectoruptoRs.
a. 10000
b. 20000
c. 25000
d. 50000
Ans- c
.............................................
Whichone is not a Basic conceptusedinpreparingof financial statements?
a. Entityconcept
b. MoneyMarket concept
c. Going Concernconcept
d. Accural concept
Ans- b
.............................................
No collateral security isrequiredforloanunderMSME formanufacturing/productionandprovidingor
renderingof servicesuptoRs.
a. 1 lakh
b. 2 lakh
c. 5 lakh

43. d. 10 lakh
Ans- c
.............................................
Advancesagainstpledge/hypothecationof agricultural produce sanctionedtofarmersonor after
01.04.2013 upto Rs....are coveredunderprioritysector.
a. 10 Lakhs
b. 15 Lakhs
c. 25 Lakhs
d. 50 Lakhs
Ans- d
.............................................
Whichone doesn'tcome underLiability?
a. Share capital
b. Reserve &surplus
c. Miscellaneousexpenditure
d. currentliability&provisions
Ans- c
.............................................
Whichaccountingstandardmakesit mandatoryforsome enterprisestoprepare cashFlow Statement
for the accountingperiod?
a. AS-1
b. AS-3
c. AS-9
d. AS-17
Ans- b
.............................................
Whichone doesn'tcome underCurrentliabilities?
a. Advance paymentsreceived
b. pre-paidexpenses
c. unclaimeddividend&dividends
d. provisions fortaxes
Ans- b
.............................................
Inventorynormsforvariousindustrieswasprescribedby?
a. Narshimmancommittee
b. Raghwancommittee
c. Tandon committee
d. Chakrabortycommittee
Ans- c
.............................................
Target foragricultural advancesincase of foreignbanksis...
a. 10
b. 20
c. 32
d. NoTarget
Ans- c
.............................................

44. In orderto avoidthe problemindelayinrealizationof bills,bankmaytake advantage of improved
computer/communicationnetworkcalled......
a. GUI
b. SFMS(StructuredFinancial MessagingSystem)
c. ETF
d. SWIFT
Ans- b
.............................................
Whichof the followingisratio,indicative of the repayingcapacityof aborrower?
a. Quickratio
b. T O L/T N W
c. D S C R
d. D E R
Ans- c
.............................................
Bank guarantee shouldnormallyhave amaturityof more than.
a. 5 years
b. 10 years
c. 15 years
d. 20 years
Ans- b
.............................................
Turnovermethodof assessmentshouldbe appliedforworkingcapital limitof uptoRs ......incase of SSI
units.
a. One Crore
b. TwoCrores
c. Five Crores
d. TenCrores
Ans- c
.............................................
Projectloanscan be givenbythe bank to
a. Onlycorporates
b. Onlycorporatesandpartnershipfirms
c. Onlycorporate,partnershipfirmsandsocieties
d. Anybusinessentity
Ans- d
.............................................
The conduct of LC businessisgovernedby......
a. RBI
b. IRDA
c. UCPDC 600
d. AMFA
Ans- c
.............................................

45. RegulatedInterestratesbyRBI,are applicable forcreditlimituptoRs... lakh.
a. 1
b. 2
c. 3
d. 5
Ans- b
.............................................
The total prioritysectortargetfor foreignbanks,operatinginIndia,is...
a. 20%
b. 32%
c. 40%
d. 18%
Ans- b
.............................................
Match the followingtermsandtheiruse:
i) purchase - 1. usedincase of - usance bills
ii) discount- 2. usedincse of - billsdrawnunderLC,openedbythe purchaser’sbank
iii) negotiation - 3.usedincase of - demandbills
a. i - 2, ii- 3. iii - 1
b. i - 3. ii - 1. iii - 2
c. i - 2, ii - 1, iii - 3
d. None of these
Ans- b
.........................................................................................................
Selectthe INCORRECTsentence:
1. Term loansare providedforacquiringthe fixedassets.
2. Workingcapital term loansare providedforsustainingcurrentassets.
3. Term loanare payable asper demand.
4. Workingcapital term loansare payable as perrepaymentschedule
a. both1 and 2
b. both2 and 3
c. both 3 and 4
d. both1 and 4
Ans- c
.........................................................................................................
What shoulda bankdo if the ownerof the collateral securityissomeone otherthanthe borrower?
a. Rejectthe loan
b. Transfersecuritytothe name of borrower
c. Make the ownerof the collateral securityasfirstguaranterof the loanand create charge over the
security
d. securityshouldbe hypothecatedtothe banker
Ans- c
.............................................
Whichof the Followingisnotarisk mentionedinthe Basel IIAccord
a. Operational risk
b. Market risk
c. Defaultrisk
d. Creditrisk

46. Ans- c
.............................................
Whichof the followingstatementsisnottrue foran infrastructure project?
a. It has longgestationperiod
b. It reducesthe riskforthe lenderashisfundsget assureddeploymentfora longtime.
c. The debtequityratioisnormallyhighforaninfrastructure project
d. The implementationperiodisusuallylong
Ans- b
.............................................
Foreignbankswith20 branchesand above inIndianeed toachieve PStargetof 40% in how many years
?
a. 02 years
b. 03 years
c. 04 years
d. 05 years
Ans- d
.............................................
Whichof the followingisanexternal factoraffectingcreditrisk?
a. Governmentpolicies
b. Faultyloan andrepaymentstructuring
c. Overexposure(concentration) of credittoa particularsegment
d. Lack of an efficientrecoverymachinery
The correct choice is …
a. Governmentpolicies
.............................................
What bankshoulddo toavoidasset-liabilitymaturitymismatchthatmayarise out extendinglongtenor
to infrastructure projects?
a. Returnon investment
b. Break- evenanalysis
c. LiquiditysupportfromIDFC
d. Take-outfinancingarrangement
Ans- d
.............................................
A D G P isissuedbythe bankfor ----------,byitsclient.
a. Sale of goods
b. Purchase of goods
c. Sale of capital goods
d. Purchase of capital goods
Ans- d
.............................................
Whichof the followingisnota source of fundsformeetingthe costof fixedassetsbyanenterprise?
a. Creditbysupplierof assets
b. Internal accruals
c. Debentures
d. D P G (Deferred PaymentGuarantee)
Ans- d
.............................................

47. Whichof the followingis notcorrect regardingtermloansbythe banks?
a. Assetliabilitymatchingisanimportantconsiderationintermfinancing
b. Installmentof termloan,payable withinone yearisconsideredascurrentliability
c. Repaymentof a termloancan be inequated monthlyinstalments
d. Currentratiois the mostimportantratioin appraisal of a termloan
Ans- d
.............................................
Whichof the followingisnotcorrect regardinginfrastructure projectbythe banks?
a. Banksare allowedto fundspromoters'equityincertaincircumstances
b. Exposure normsare relaxedbyRB I
c. AssetliabilitymismatchhasbeenpermittedbyRB I
d. I D F C providesliquiditysupporttobanks
Ans- c
.............................................
Whichof the followingstatementsisnotcorrectfor projectappraisal?
a. Examinationof technical feasibilityiscarriedout
b. The contributionof promotersformsapart of economicappraisal
c. Promoters'backgroundispart of the managementappraisal
d. Capacityof promotersto arrange for additional funds,incase of contingencies,formsapart of
economicappraisal.
Ans- d
.............................................
Whichof the followingisnota creditrisk?
a. Unwillingnessof acustomertomeethis commitmentrelatingtoa financial transactionwiththe bank
b. Inabilityof the customertoreimburse the bankincase of invocationof a guarantee ordevolvement
of an L.C
c. Inabilityof acustomerto meethiscommitmentrelatingtoa financial transactionwiththe bank
d. Lossto the bankdue to fraud
Ans- d
.............................................
Whichof the followingisnotan internal factoraffectingcreditrisk?
a. Excessive lendingtocyclical industries
b. Lowqualityof creditappraisal andmonitoring
c. Deficienciesinthe loanpolicyof the bank
d. Protectionistpoliciesof othercountries
Ans- d
.............................................
Whichof the followingisnota macro level actionformitigationof creditrisk?
a. Periodicallyreviewsof the exposurenormsforsingle andgroupborrowers
b. Improvingappraisal standardsof creditproposals
c. Frequentreviewsof normsandfixinginternallimitsforaggregate commitmentstospecificsectorsof
the industryor business
d. Periodicreviewof total creditportfoliobasedonqualityparameters
Ans- b
.............................................
Whichof the followingisnota micro level actionformitigationof creditrisk?
a. Improvingsanctioninganddeliveringprocess
b. Obtentionof collateralsecurity

48. c. Monitoringandreviewof individual proposals/categoriesof proposals
d. Periodical reviewsof the exposure limitsforbusinessorindustrysegment
Ans- d
.............................................
Whichof the following statementsisnottrue regardingcreditderivativesproducts?
a. These are usedto hedge creditrisktothe bank
b. The protectionbuyeristhe lendingbank
c. The protectionsellercanbe anotherbankor any otherorganization
d. The creditassetis transferredincase of derivatives
Ans- d
.............................................
Creditratingisa systemof:
a. Measuringrisk
b. Mitigatingrisk
c. Migratingrisk
d. Creditappraisal
Ans- a
.............................................
Internal ratingmeAns -
a. Ratingthe project
b. Ratingthe promoters
c. Ratingthe riskfor internal use
d. None of the above
Ans- d
.............................................
For external creditrating,banksdependon:
a. Ratingagencies
b. Experiencedstaff of the bank
c. Bankingconsultants
d. None of the above
Ans- a
.............................................
Whichof the followingisnotan approachfor assessmentof creditrisks,laiddownunderBasel 2
Accord?
a. Standardizedapproach
b. Foundation Internal RatingBased(IRb.approach
c. AdvancedInternal RatingBased(IR b.approach
d. SimplifiedInternalRatingBased(IRb. approach
Ans- d
.............................................
Whichof the followingstatementsistrue regardingStandardizedapproach?
a. It has alreadybeenadoptedbyall the banks
b. It hasbeenadoptedonlythe foreignbanksoperatinginIndia.
c. It has beenadoptedbythe foreignbanksoperatinginIndiaandsome of the Indianbanks
d. It hasto be adoptedbythe all the banks byMarch 2010
Ans- a
.............................................
R B I hassuggestedwhichof the followingearliestdate of makingapplicationbybankstoR B I regarding

49. implementationof the advanced
approaches(Foundationaswell asIR b.
a. 1, April 2012
b. 1, April 2013
c. 1, April 2014
d. 1, April 2015
Ans- a
.............................................
Whichof the followingisnota purpose of creditmonitoring?
a. To ensure enduse of the fundsby the borrower
b. To detectanydeteriorationinthe securitychargedtothe bank
c. To complywiththe guidelinesof the RBI
d. To ascertainthat the businesscontinuestorunonthe projectedlines
Ans- c
.............................................
Whichof the followingisnota tool available tocheckthe bankfor creditmonitoring?
a. Sendingregularreminderstothe borrower
b. Periodicvisitstothe businessplace forinspection
c. Analysisof financial statements
d. Examine conductof borrower'saccount
Ans- a
.............................................
Whichof the followingisnota methodfordetectingwrongmentionof inventoryinastockstatement?
a. Stock audit
b. Inspectionof stocks
c. Analysisof financial statements
d. Cross-checkfromthe balance sheetfigure
Ans- c
.............................................
Whichof the followingisnota methodfordetectingwrongmentionof receivablesinstockstatement
submittedbythe borrower?
a. Analysisof financial statements
b. Crosscheck fromthe balance sheetfigure
c. Receivablesaudit
d. Inspectionof booksof account
Ans- a
.............................................
Whichof the followingisnota dangersignabout the directionof businessof the borrower?
a. Devolvementof LCs, invocationof BankGuarantees
b. Demandforhigherlimit
c. Delaysinsubmissionof stock/receivablesstatements
d. Returnof chequesorbills
Ans- d
.............................................
Whichof the followingisnotan unsatisfactorysigninconductof the account of the borrower?
a. Delayinpaymentof interestorinstalments,
b. routingof transactionswithsome otherbank

50. c. Frequentoverdrawings
d. Highturnover
Ans- d
.............................................
Whichof the followingisnotthe purpose creditaudit?
a. Improvementinthe qualityof creditportfolio
b. Reviewsanctionprocessandcompliance statusof large loans
c. Feedbackonregulatorycompliance
d. Stockinspection
Ans- d
.............................................
Purpose of appointingbank’snomineeoncompany’sboardof borrowingcompanyis:
a. To keepa tab on the importantdecisionsof the board
b. To be a part of the management
c. To guide the companyfor betterworking
d. To safeguardthe securitieschargedtothe bank
Ans- a
.............................................
The aim of a rehabilitationprogrammeis:
a. To make the operationsof the enterprise viable again
b. To helpinemploymentgeneration
c. To complywithR B I guidelines
d. To increase bank'sadvances
Ans- a
.............................................
Banksenterintocompromise withborrowersincase of default,because:
a. Recoverythroughlegal actionistime consuming
b. Adequate securityisnotavailable
c. Realizationorsecuritymaybe difficult
d. All the above
Ans- a
.............................................
Maximumloanamountunderhousingfinance torepaira house ata rural place can be Rs. ?
a. 1 lakh
b. 2 Lakh
c. 5 Lakh
d. 10 Lakh
Ans- a
.............................................
BPLR systemof lendingrateswasreplacedbybase rate systemwitheffect from...
a. 01 Jun 2010
b. 01 Jul 2011
c. 01 Jun 2011
d. 01 Jul 2010
Ans- d
.............................................
......%of small enterprisesadvancesshouldgotomicro enterprisesincase of foreignbanks.

51. a. 20
b. 40
c. 60
d. 80
Ans- c
.............................................