Vijaya Bank PO Exam, 2008 Solved Paper

General Awareness on Socio-Economic Developments 

(Exam Held on 2–3–2008)

1. The Foreign Exchange Reserve of India are kept in the custody of……
(A) World Bank
(B) International Monetary Fund
(C) Prime Minister Rahat Kosh
(D) Reserve Bank of India
(E) None of these
Ans. (D) Reserve Bank of India
2. The Reserve Bank of India issues coins and notes of various denominations. At present RBI does not issue coins of which of the following denominations ?
(A) 10 paise
(B) 20 paise
(C) 25 paise
(D) 50 paise
(E) 1·00 Rupee
Ans. (B) 20 paise
3. The European Union has adopted which of the following as a common currency ?
(A) Dollar
(B) Dinar
(C) Yen
(D) Peso
(E) Euro
Ans. (E) Euro
4. Various Banks in the country have installed machines which disburse money to general public. These machines are called……
(A) Coin dispensing machines
(B) ATMs
(C) Debit Card Machines
(D) Ledger Machines
(E) None of these
Ans. (B) ATMs
5. Which of the following names is not associated with the insurance business in India ?
(A) Bajaj Allianz
(B) LIC
(C) GIC
(D) Tata AIG
(E) GE Money
Ans. (E) GE Money
6. Commodity Exchanges at various places in India are trading in many metals like gold, silver, etc. Many times we read in newspapers that gold no more has emained the highest trading option and has been replaced by a non-traditional metal known as……
(A) copper
(B) steel
(C) zinc
(D) white gold
(E) None of these
Ans. (D) white gold
7. Which of the following is known as Plastic money ?
1. Demand Draft
2. Credit Card
3. Debit Card
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 2 and 3
(E) All 1, 2 and 3
Ans. (D) Both 2 and 3
8. Many a time we see a term in newspapers ‘IPO’. What is the full form of the same ?
(A) Indian Public Offer
(B) Institutional Purchase
(C) Industrial Purchase Order
(D) Indian Purchase Offer
(E) Initial Public Offer
Ans. (E) Initial Public Offer
9. Many a times we read in financial newspapers a term/name NMCEX. What is the full form of the same ?
(A) New Multi Capital Exchange
(B) National Medium Commodity Exchange
(C) National Multi Commodity Exchange
(D) Net Marketable Commodity Exchange
(E) None of these
Ans. (C) National Multi Commodity Exchange
10. Many Banks these days are entering into business of offering loans against property. This business of the banks can be categorized under which of the following heads of banking ?
(A) Corporate Banking
(B) Personal Banking
(C) Merchant Banking
(D) Portfolio Management Service
(E) None of these
Ans. (B) Personal Banking
11. Which of the following organizations/banks has done a commendable work in the field of micro finance and was awarded Nobel Prize also in the past ?
(A) Gramin Bank of Bangladesh
(B) CRY
(C) ASHA
(D) NABARD
(E) None of these
Ans. (A) Gramin Bank of Bangladesh
12. Nobel Prizes are not given for the performance in the area of…
(A) Literature
(B) Physics
(C) Chemistry
(D) Music
(E) Medical Science
Ans. (D) Music
13. In which of the following Hindi films has actor Shahrukh Khan played the role of a Hockey Coach ?
(A) Guru
(B) Chak De India
(C) Om Shanti Om
(D) Jab We Met
(E) None of these
Ans. (B) Chak De India
14. Which of the following countries has not made any significant investment in India ?
(A) Japan
(B) USA
(C) Nepal
(D) Britain
(E) France
Ans. (C) Nepal
15. Which of the following is considered an informal method of getting credit/finance ?
(A) Internet Banking
(B) Branch visits
(C) Going to money lenders
(D) Tele Banking
(E) All of these
Ans. (C) Going to money lenders
16. Which amongst the following nations is not a member of the SAARC ?
(A) Bangladesh
(B) Bhutan
(C) Nepal
(D) Maldives
(E) South Africa
Ans. (E) South Africa
17. Which of the following indexes is developed to measure life expectancy, level of literacy, education and standard of living of people in a country ?
(A) Inflation
(B) Sensex
(C) Human Development Index
(D) SLR
(E) None of these
Ans. (C) Human Development Index
18. Which of the following is not a Public Sector Unit/Undertaking/Agency ?
(A) ECGC
(B) SEBI
(C) SIDBI
(D) Axis Bank
(E) BHEL
Ans. (B) SEBI
19. Which of the countries represent letter ‘C’ in the category known as BRIC countries ?
(A) Canada
(B) Chile
(C) Cuba
(D) Croatia
(E) China
Ans. (E) China
20. Who amongst the following addresses the nation on the Independence Day from the ramparts of the Red Fort, Delhi ?
(A) President of India
(B) UPA Chairperson
(C) Speaker of the Lok Sabha
(D) Prime Minister of India
(E) None of these
Ans. (D) Prime Minister of India
21. Which of the following awards is given for excellence in the field of sports ?
(A) Kalidas Samman
(B) Dhyanchand Award
(C) Shram Vir Award
(D) Shanti Swarup Bhatnagar Award
(E) None of these
Ans. (B) Dhyanchand Award
22. Which of the following does not represent the name of a bank working in India ?
(A) YES
(B) HDFC
(C) TATA
(D) Kotak Mahindra
(E) Axis
Ans. (C) TATA
23. Twenty-20 matches are played in the game of……
(A) Hockey
(B) Football
(C) Badminton
(D) Tennis
(E) Cricket
Ans. (E) Cricket
24. Which of the following deals between India and one major country was put on a hold for some time as India is finding difficult to implement it ?
(A) 123 Pact with USA
(B) Fifth generation fighter plane deal with Russia
(C) Heavy Water deal with Iran
(D) Border talks with China
(E) None of these
Ans. (A) 123 Pact with USA
25. Which of the following is a type of tax levied by the Govt. on goods and services ?
(A) SAT
(B) NET
(C) PAN
(D) VAT
(E) None of these
Ans. (D) VAT
26. As per the news appeared in some major newspapers India is number two in getting ‘PE’. What is the full form of ‘PE’ as used in the financial world ?
(A) Professional and Ecofriendly
(B) Profitable Equity
(C) Profitable and Economical
(D) Private and Economical
(E) Private Equity
Ans. (E) Private Equity
27. Many a times we read in newspapers about ‘Financial Inclusion’. What does it really mean ? [Pick up correct statement(s)]
1. Allow the merger and acquisition of banks so that only few big banks exist and continue to cater to the need of corporate sector.
2. Expending the network of banks in such a way that people from lower strata of society also get the benefit of services provided by banks.
3. Providing Insurance cover to each and every citizen so that he/she can live a healthy and long life.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 1 and 2
(E) All 1, 2 and 3
Ans. (B) Only 2
28. Which of the following organizations recently issued some guidelines related to ‘Participatory Notes’ as used in financial world ?
(A) RBI
(B) IRDA
(C) SEBI
(D) AMFI
(E) None of these
Ans. (C) SEBI
29. Heavy Water is normally used by which of the following industries ?
(A) Nuclear Power generation plants
(B) Pharma Industry
(C) Paper Industry
(D) Sugar plants
(E) None of these
Ans. (A) Nuclear Power generation plants
30. As per news items published in various newspapers, Italy has offered its help in developing ‘SMEs’ in India. What is the full form of ‘SME’ ?
(A) Small and Monopolistic Economy
(B) Small and Medium Enterprises
(C) Speedy and Mechanical
(D) Small and Medium Level Economy
(E) None of these
Ans. (B) Small and Medium Enterprises
31. Which of the following statements about the ‘exports’ from India is true ?
1. Exports are showing good rate of growth.
2. Exports are growing in volume but still they are poorer than imports in terms of value.
3. Exports are not improving the way they were growing two years back.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 1 and 3 are correct
(E) None of these
Ans. (C) Only 3
32. Which of the following countries for the first time elected a lady as its President recently ?
(A) Argentina
(B) China
(C) New Zealand
(D) Russia
(E) None of these
Ans. (A) Argentina
33. The Govt. of India keeps on clearing the proposal of setting up new SEZs at several places. What does the letter ‘S’ represent in the ‘SEZ’ ?
(A) Soft
(B) Small
(C) Special
(D) Supportive
(E) None of these
Ans. (C) Special
34. Which of the following is not a foodgrain ?
(A) Wheat
(B) Rice
(C) Maize
(D) Jowar
(E) Cotton
Ans. (E) Cotton
35. Who amongst the following was made the Chairman of the National Land Reforms Council ?
(A) Smt. Sonia Gandhi
(B) Arjun Singh
(C) Pranav Mukherjee
(D) Kamal Nath
(E) Manmohan Singh
Ans. (E) Manmohan Singh
36. Various Govt. agencies/organizations are given responsibilities for implementing various policies/decisions of the Govt. of India. Policies about credit flow to the agricultural/priority sector are framed/implemented through which of the following apex bodies ?
(A) ECGC
(B) NABARD
(C) UTI
(D) IDBI Bank
(E) None of these
Ans. (B) NABARD
37. As we read every then and now the Monetary and Credit Policy is reviewed and changes/corrections are made frequently. Who amongst the following exactly takes this decision in India ?
(A) Deputy Chairman, Planning Commission
(B) Prime Minister
(C) Finance Minister
(D) Chairman Finance Commission
(E) None of these
Ans. (E) None of these
38. The World Bank sanctioned Rs. 18,000 crores to which of the following states for its Poverty Alleviation Programme ?
(A) Karnataka
(B) Gujarat
(C) Maharashtra
(D) Uttar Pradesh
(E) None of these
Ans. (D) Uttar Pradesh
39. The UNO has declared year 2008 as the year of……
(A) AIDS Prevention
(B) Potato
(C) Water Harvesting
(D) Social Justice to Children
(E) None of these
Ans. (B) Potato
40. Who amongst the following is the author of the book ‘Pakistan– The Gathering Storms’ ?
(A) Benazir Bhutto
(B) Parvez Musharraf
(C) Arun Shourie
(D) Arun Gandhi
(E) None of these
Ans. (A) Benazir Bhutto
41. Which of the following is not a gallantry Award ?
(A) Vir Chakra
(B) Jeevan Raksha Padak
(C) Ashok Chakra
(D) Mahavir Chakra
(E) Saraswati Samman
Ans. (E) Saraswati Samman
42. Which of the following states has approved sharing Neyyar Irrigation Project water with Tamil Nadu ?
(A) Karnataka
(B) Andhra Pradesh
(C) Kerala
(D) Maharashtra and Karnataka
(E) None of these
Ans. (C) Kerala
43. Which of the following is not a foreign bank working in India ?
(A) HSBC
(B) Barclays
(C) Standard Chartered
(D) Yes Bank
(E) All are foreign banks
Ans. (D) Yes Bank
44. Who amongst the following is the Chairman of the 13th Finance Commission ?
(A) Bimal Jalan
(B) Y. V. Reddy
(C) C. Rangarajan
(D) Vijay Kelkar
(E) None of these
Ans. (D) Vijay Kelkar
45. India has the least or negligible trade relations with …………
(A) Japan
(B) Britain
(C) South Africa
(D) Uganda
(E) Iran
Ans. (D) Uganda
46. Your friend has received a sum of Rs. 10000 from his grandparents. He wants to deposit this sum in a bank under a condition of not to withdraw fully or partially for at least two years. He will be needed to open which type of account in the bank ?
(A) Small savings account
(B) Current account
(C) Fixed deposit account
(D) Demat account
(E) None of these
Ans. (C) Fixed deposit account
47. Recently, this was in news that ASEAN is an association of ……
(A) Commonwealth nations
(B) SAARC nations
(C) South-Eastern Asian nations
(D) Oil-exporting nations
(E) African nations
Ans. (C) South-Eastern Asian nations
48. Names of two important persons are often visible in newspapers/magazines/electronic media. These names are Dr. C. Rangarajan and Dr. Bimal Jalan. Which of the following facts are identical in the life of both these two persons ?
(A) Both are principal economic advisors to the Prime Minister
(B) Both are the Members of the Lok Sabha
(C) Both are the former Governors of RBI
(D) Both were the Finance Ministers of India
(E) There is nothing similar in both
Ans. (C) Both are the former Governors of RBI
49. Which of the following places of West Bengal was in news recently, since some violent incidences took place due to an attempt of agricultural land aquisition for industrial purposes ?
(A) Khadakpur
(B) Nandigram
(C) Howrah
(D) Bolepur
(E) None of these
Ans. (B) Nandigram
50. In accordance with the reports published in the papers/magazines, the Government of India and some NGOs have declared/started some projects to help/ to provide relief to the farmers in general and specially to perplexed farmers. Which of the following is not such a plan ?
(A) Crop insurance plan
(B) E-Chaupal
(C) Subsidy for chemical fertilizers
(D) Reconstruction of watershade/water-bodies
(E) Mid-day meal
Ans. (E) Mid-day meal

ECONOMY TERMS

Bretton Woods: An international monetary system operating from 1946-1973. The value of the dollar was fixed in terms of gold, and every other country held its currency at a fixed exchange rate against the dollar; when trade deficits occurred, the central bank of the deficit country financed the deficit with its reserves of international currencies. The Bretton Woods system collapsed in 1971 when the US abandoned the gold standard.

Balance of Payment is the summation of imports and exports made between one country and the other countries that it trades with.

Balance of trade: The difference in value over a period of time between a country's imports and exports.

Base year: In the construction of an index, the year from which the weights assigned to the different components of the index is drawn. It is conventional to set the value of an index in its base year equal to 100.

Bill of exchange: A written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. Also known as a draft. It is the most commonly used financial instrument in international trade.

Call money: Price paid by an investor for a call option. There is no fixed rate for call money. It depends on the type of stock, its performance prior to the purchase of the call option, and the period of the contract. It is an interest bearing band deposits that can be withdrawn on 24 hours notice.

Capital account; Part of a nation's balance of payments that includes purchases and sales of assets, such as stocks, bonds, and land. A nation has a capital account surplus when receipts from asset sales exceed payments for the country's purchases of foreign assets. The sum of the capital and current accounts is the overall balance of payments.

Current account: Part of a nation's balance of payments which includes the value of all goods and services imported and exported, as well as the payment and receipt of dividends and interest. A nation has a current account surplus if exports exceed imports plus net transfers to foreigners. The sum of the current and capital accounts is the overall balance of payments.

Currency appreciation: An increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates; a unit of one currency buys more units of another currency. Opposite is the case with currency depreciation.

Fiscal deficit is the gap between the government's total spending and the sum of its revenue receipts and non-debt capital receipts. The fiscal deficit represents the total amount of borrowed funds required by the government to completely meet its expenditure

Foreign exchange reserves: The stock of liquid assets denominated in foreign currencies held by a government's monetary authorities (typically, the finance ministry or central bank). Reserves enable the monetary authorities to intervene in foreign exchange markets to affect the exchange value of their domestic currency in the market. Reserves are invested in low-risk and liquid assets, often in foreign government securities.

Gross domestic product (GDP): Gross Domestic Product: The total of goods and services produced by a nation over a given period, usually 1 year. Gross Domestic Product measures the total output from all the resources located in a country, wherever the owners of the resources live.

Gross national product (GNP) is the value of all final goods and services produced within a nation in a given year, plus income earned by its citizens abroad, minus income earned by foreigners from domestic production. The Fact book, following current practice, uses GDP rather than GNP to measure national production. However, the user must realize that in certain countries net remittances from citizens working abroad may be important to national well being. GNP equals GDP plus net property income from abroad.

Inflation: In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation is also erosion in the purchasing power of money a loss of real value in the internal medium of exchange and unit of account in the economy.

International Monetary Fund (IMF) An autonomous international financial institution that originated in the Bretton Woods Conference of 1944. Its main purpose is to regulate the international monetary exchange system, which also stems from that conference but has since been modified. In particular, one of the central tasks of the IMF is to control fluctuations in exchange rates of world currencies in a bid to alleviate severe balance of payments problems.

Monetary policy: The regulation of the money supply and interest rates by a central bank in order to control inflation and stabilize currency. If the economy is heating up, the central bank (such as RBI in India) can withdraw money from the banking system, raise the reserve requirement or raise the discount rate to make it cool down. If growth is slowing, it can reverse the process - increase the money supply, lower the reserve requirement and decrease the discount rate. The monetary policy influences interest rates and money supply.

Subsidy: A payment by the government to producers or distributors in an industry to prevent the decline of that industry (e.g., as a result of continuous unprofitable operations) or an increase in the prices of its products or simply to encourage it to hire more labor (as in the case of a wage subsidy). Examples are export subsidies to encourage the sale of exports; subsidies on some foodstuffs to keep down the cost of living, especially in urban areas; and farm subsidies to encourage expansion of farm production and achieve self-reliance in food production.

Treasury bill: A short-term debt issued by a national government with a maximum maturity of one year. Treasury bills are sold at discount, such that the difference between purchase price and the value at maturity is the amount of interest.

Central Bank of India Probationary Officers Exam., 2010

 

General Awareness
(Exam Held on 25-7-2010)

1. Equity schemes managed strong NAV gains, which boost their assets’ was a news in some financial newspapers. What is the full form of the term NAV as used in above head lines ?
(A) Nil Accounting Variation
(B) Net Accounting Venture
(C) Net Asset Value
(D) New Asset Venture
(D) None of these
Ans : (C)
2. As per reports published in various news papers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 per cent—
(A) Of the total investments they made collectively during the year
(B) More than their profits during previous year
(C) Of the total capital of the company
(D) Less than the total expenditure of the companies
(D) None of these
Ans : (B)
3. As per the news published in various news papers Pakistan has imposed 15 per cent regulatory duty on exports of cotton yarn. Why countries are required to impose regulatory duties on exports of some of their commodities while in the eyes of the layman more exports means more foreign exchange and more revenue for the Govt. ?
1. It is done to control the exports of a commodity as it may be needed more in local markets than in foreign countries.
2. It is done to control the general inflation in the country as the inordinate exports of various commodities create imbalance and also cost push inflation.
3. It is a good short time measure to collect more revenue from the exports of the commodity which is in high demand in overseas markets.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (A)
4. As per the reports published in some major news papers ‘ADAG companies’ made good profits during the year. ADAG companies are popularly known as—
(A) Companies owned by Tata Group
(B) Aditya Birla Companies
(C) Reliance companies
(D) Companies owned by Aptech
(E) None of these
Ans : (C)
5. ONGC – Mittal Energy finds hydrocarbons in two blocks OPL-279 & OPL -285 in Nigerian sea was the news in some major news papers. what is the full form of the term OPL as used in the above head line ?
(A) Oil Prospecting License
(B) Ownership and Partnership Lease
(C) Overseas Private Line
(D) ONGC Petroleum Ltd.
(E) None of these
Ans : (A)
6. “Mutual Funds reported exceptional performance in 2009-10” was the news in major financial news papers recently. What is a mutual fund ?
1. A type of collective investment scheme that pools money from many investors and invest it in stocks, bonds or other money market instruments.
2. It is a subsidiary of a bank or financial company created specially to ralse money to be invested in a particular industry i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else.
3. When several banks and financial companies come together and create a common pool of money to fund
mega infrastructural project like bridges, roads, power plants etc. the common pool is known as Mutual Fund.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (B)
7. As we all know the Bank Rate at present is fixed at 6%. What does it mean in context to the banking operations ?
(A) No bank will be able to give loan to any party on a rate lower than the Bank Rate
(B) Bank should give loan to their priority sector customers/borrowers at the rate of 6% only. They cannot charge less or more than this from their priority sector clients
(C) Banks are required to invest 6% of their total capital on financial inclusion and inclusive banking operations
(D) Banks will be required to give 6% of their total deposits to the Govt. of India for meeting its Balance of Trade requirements
(E) None of these
Ans : (A)
8. As per the reports in various news papers many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organizations/agencies issue the licence for the same ?
(A) Securities & Exchange Board of India (SEBI)
(B) Indian Institute of Banking & Finance (IIBF)
(C) Indian Bank Association
(D) Registrar of Companies
(E) None of these
Ans : (E)
9. We very frequently read about Europe’s Sovereign—debt crisis these day. Which of the following statement/s is/are true about the same ?
1. In early 2010 the Euro crisis developed in some countries like Greece, Spain and Portugal.
2. This created a credit default swap between the countries of the European Union.
3. SAARC countries have offered some assistance to some of severely affected countries like Portugal, Spain & Greece.
(A) Only 1
(B) Only 2
(C) Only 1 and 2
(D) All 1, 2 and 3
(E) None of these
Ans : (A)
10. As we all know the RBI has raised the Cash Reserve Ratio (CRR) by 25 bps. in April 2010. What action banks will have to take to implement the same ?
1. They will have to deposit some more money with the RBI as a reserved money.
2. Banks will be required to give some more loan to projects of the priority sector.
3. Banks will be required to give loan equivalent to the CRR to the Govt. of India for its day to day expenditure as and when required.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (A)
11. As per estimates given by the RBI the Economic Growth during the year 2010-11 will be at which of the following levels ?
(A) 6•5%
(B) 7%
(C) 7•5%
(D) 8%
(E) None of these
Ans : (D)
12. Which of the following is/are correct about the RBI’s credit policy announced in April 2010 ?
1. Repo rate raised by 25 bps.
2. A new reporting platform was introduced for secondary market transactions in Certificate of Deposits (CDs) and Commercial Papers (CPs).
3. Core Investment Companies (CICs) having an asset size of Rs. 100 crore are required to register also with the RBI.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (A)
13. As per the announcement made by the RBI some Stock Exchanges in India are allowed to introduce Plain Vanilla Currency Options. The term Plain Vanilla Currency Options is associated with which of the following activities / operations ?
(A) Dollar – Rupee Exchange Rate
(B) Floating of Commercial Papers
(C) Launch of new mutual funds
(D) Deciding the opening price of a share on a particular business day
(E) None of these
Ans : (A)
14. Which of the following is not a term related to banking/finance operations ?
(A) Provision Coverage Ratio
(B) Securitization
(C) Consolidation
(D) Commodification
(E) Derivatives
Ans : (C)
15. The process of “Artificial Application of Water to the soil usually for assisting in growing crops”, is technically known as—
(A) water harvesting
(B) irrigation
(C) water recharging
(D) percolation
(E) None of these
Ans : (B)
16. As per the news published in major news papers/journals henceforth the Credit Card holders will be able to access their credit card information though automated interactive voice response system over the phone instead of speaking to the staff. This decision ofthe banks/credit card companies will provide—
1. an additional hurdle to the customers as people feel comfortable in talking to the staff instead of talking to a machine.
2. an additional security to the customers as this does not allow any staff to handle any transaction directly.
3. some comfort to the banks as they will be able to reduce their staff strength.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) Only 1 and 3
Ans : (B)
17. The 34th National Game which were postponed several times are scheduled to be held in which of the following states ?
(A) Gujarat
(B) Kerala
(C) Tamil Nadu
(D) Uttar Pradesh
(E) Jharkhand
Ans : (E)
18. Waste Water generates which of the following gases which is more powerful and dangerous than CO2 ?
(A) Nitrogen
(B) Sulphur di-oxide
(C) Hydrogen
(D) Methane
(E) None of these
Ans : (D)
19. Which of the following days was observed as World Water Day 2010 ?
(A) 20th June
(B) 22nd July
(C) 22nd March
(D) 20th May
(E) None of these
Ans : (C)
20. Late Vinda Karandikar who died a few months back was a famous—
(A) Author
(B) Cine-Actor
(C) Sportsman
(D) Classical Singer
(E) Social Worker
Ans : (A)
21. As per the reports published recently the Govt. of India has decided to create a separate agency/body scrutinize all Foreign Direct Investments (FDIs) officially. Up till now the security screening was being done by the—
(A) Ministry of Foreign Affairs Govt. of India
(B) Reserve Bank of India
(C) Securities & Exchange Board of India
(D) Ministry of Finance, Govt. of India
(E) Ministry of Home Affairs Govt. of India
Ans : (E)
22. As per the news reports in various news papers the USA has outlined some major policy goals to prevent the danger of nuclear terrorism. Which of the following is/are included in those policy goals ?
1. Convene a nuclear security summit within a year’s time under the leadership of the USA.
2. A new agreement/pact should be introduced in place of present Nuclear Non Proliferation Treaty (NPT).
3. Call for a global effort to secure all nuclear weapons at all vulnerable sites all over the world.
(A) Only 1
(B) Only 2
(C) Only 1 and 3
(D) Only 2 and 3
(E) All 1, 2 and 3
Ans : (E)
23. ‘Indira Gandhi Canal’ which is around 450 km long provide irrigation facility mainly to which of the following states ?
(A) Punjab
(B) Haryana
(C) Madhya Pradesh
(D) Gujarat
(E) Rajasthan
Ans : (E)
24. Former caption of the Indian Cricket team, Ajit Wadekar is conferred which of the following awards for the year 2010 ?
(A) Bharat Ratna
(B) Khel Shri Award
(C) Dronacharya Award
(D) Rajiv Gandhi Khel Ratna Award
(E) None of these
Ans : (E)
25. Who amongst the following is the director of the popular Hindi film “Oye Lucky ! Lucky Oye” ?
(A) Mani Ratnam
(B) David Dhavan
(C) Dibankar Banerjee
(D) R. Balakrishnan
(E) None of these
Ans : (C)
26. India recently signed an agreement to import Liquified Natural Gas (LNG) from a country which is the largest LNG producer and supplier of the world. Which is that country ?
(A) Kuwait
(B) Qatar
(C) Iran
(D) Saudi Arabia
(E) None of these
Ans : (B)
27. As a measure to help countries hit by global financial meltdown the RBI has purchased notes worth US $ 10 billion in terms of Special Drawing Rights from a World Organisation/agency. Which is this agency/organization ?
(A) Federal Reserve of U.S.A.
(B) Asian Development Bank
(C) World Bank
(D) International Monetary Fund
(E) None of these
Ans : (D)
28. Which of the following is not a public sector undertaking under the Ministry of Defence, Govt. of India ?
(A) Mazagaon Dock Ltd.
(B) Garden Reach Shipbuilders and Engineers Ltd.
(C) Bharat Heavy Electricals Ltd.
(D) Hindustan Aeronautics Ltd.
(E) Bharat Earth Movers Ltd.
Ans : (C)
29. Which of the following states won the senior National Women’s Football Tournament 2010 ?
(A) Manipur
(B) Assam
(C) Tamil Nadu
(D) Kerala
(E) Delhi
Ans : (A)
30. Which of the following is not a missile developed by the Defence Research and Development Organisation (DRDO) ?
(A) Shaurya
(B) Pinaka
(C) Brahmos
(D) Agni
(E) Nag
Ans : (A)
31. Which of the following declarations/treaties was adopted by the BRIC countries recently to promote Global Food Security ?
(A) Moscow Declaration
(B) Doha Treaty
(C) Delhi Declaration
(D) Kabul Treaty
(E) None of these
Ans : (A)
32. Which of the following statements represent(s) the main objective(s) of the revised National Health Policy–2002 of the Govt. of India ?
1. Increase Public expenditure from 0•9 per cent to 2 per cent of the GDP.
2. Setting up of Medical Grants Commission for funding new Govt. Medical & Dental colleges.
3. Mandatory two years rural posting before awarding the degree to Medical Graduates.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 3
(E) All 1, 2 and 3
Ans : (E)
33. Which of the following metals is used for genration of nuclear Energy by most of the Nuclear Power Plants ?
(A) Zinc
(B) Platinum
(C) Uranium
(D) Nickel
(E) None of these
Ans : (C)
34. Indus Water Treaty is a pact on sharing of river water between India and—
(A) Bangladesh
(B) Pakistan
(C) Nepal
(D) Afghanistan
(E) Myanmar
Ans : (B)
35. The Union Cabinet recently cleared Prohibition of unfair Practices in Technical Medical Educational Institutes and Universities Bill 2010. As per the bill which of the following will now be treated as a cognizable offence ?
(A) Accepting capitation fee from the students
(B) Running a private college
(C) Not allowing students to change their course in between
(D) Running a college without proper facilities
(E) None of these
Ans : (A)
36. Which of the following is/are considered a Renewable Source of Energy ?
1. Wind Energy
2. Solar Energy
3. Nuclear Energy
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (D)
37. Which of the following countries is not amongst the top ten in industrial production in the world during 2010 ?
(A) India
(B) Iran
(C) China
(D) France
(E) U.S.A.
Ans : (B)
38. Commonwealth Games 2010 are being organized in which of the following countries ?
(A) Australia
(B) South Africa
(C) Canada
(D) New Zealand
(E) India
Ans : (E)
39. Which of the following is not a banking related term ?
(A) Radiation
(B) Outstanding amount
(C) Benchmark Prime Lending Rate
(D) Explicit Guarantee
(E) Creditor
Ans : (A)
40. Insurance service provided by various banks is commonly known as—
(A) Investment Banking
(B) Portfolio Management
(C) Merchant Banking
(D) Bancassurance
(E) Micro Finance
Ans : (D)
41. Who amongst the following has recently taken over as the Chairman of the 19th Law Commission ?
(A) Mr. A. R. Lakshmanan
(B) Mr. P. V. Reddy
(C) Mr. Yashwant Sinha
(D) Mr. Ranjan Bharti Mittal
(E) None of these
Ans : (B)
42. Moortidevi Award is given for excellence in the field of—
(A) Classical dance
(B) Literature
(C) Classical music
(D) Cinematography
(E) Social service
Ans : (B)
43. Which of the following terms is used in the game of Cricket ?
(A) Love
(B) Tee
(C) Penalty stroke
(D) No Ball
(E) None of these
Ans : (D)
44. Which of the following awards is given by an agency of the United Nations Organization ?
(A) Normon Borloug Award
(B) Kalinga Prize
(C) Ramon Magsaysay Award
(D) Pulitzer Prize
(E) None of these
Ans : (B)
45. Which of the following countries won the Hockey World Cup 2010 ?
(A) Spain
(B) England
(C) India
(D) Australia
(E) None of these
Ans : (D)
46. Who amongst the following is the author of the English novel ‘solo’, which was given Common Wealth Writers’ Prize 2010 ?
(A) Aamer Hussain
(B) Jonathan Tel
(C) Rana Dasgupta
(D) John Torrence Tate
(E) None of these
Ans : (C)
47. Mr. Surjit Patar who was awarded Saraswati Samman recently is a well known poet of—
(A) Hindi
(B) English
(C) Punjabi
(D) Urdu
(E) Bengali
Ans : (C)
48. Which of the following is the book written by Kiran Desai ?
(A) Higher than Everest
(B) A Passage to England
(C) Affluent Society
(D) All my Yester Years
(E) The Inheritance of Loss
Ans : (E)
49. Which of the following Trophies/cups is associated with the game of Hockey ?
(A) Durand Cup
(B) Santosh Trophy
(C) Rangaswami Cup
(D) Ranji Trophy
(E) K. D. Singh Babu Trophy
Ans : (C)
50. Sandra Bullock who was awarded Oscar recently is a famous—
(A) Actress
(B) Director
(C) Music Composer
(D) Screen play writer
(E) None of these
Ans : (A)

Syndicate Bank Specialist Officers Exam., 2010

General Awareness

(Exam Held on 23-5-2010)

1. In one of his speeches Pranab Mukherjee said that the Govt. had no plans to dilute the roles of market regulators. This means the role of which of the following will not be diluted ?
(A) Life Insurance Corporation of India (LIC)
(B) Confederation of Indian Industry (CII)
(C) Federation of Chamber of Commerce & Industry (FICCI)
(D) Bureau of Indian Standards
(E) Securities & Exchange Board of India (SEBI)
Ans : (E)
2. What is the full form of ‘ULIP’, the term which was in the news recently ?
(A) Universal Life & Investment Plan
(B) Unit Loan & Insurance Plan
(C) Universal Loan & Investment Plan
(D) Uniformly Loaded Investment Plan
(E) Unit Linked Insurance Plan
Ans : (E)
3. As per the news published in some major financial newspapers the Maharashtra Govt. is planning to introduce ‘Green Tax’ on vehicles. What is the purpose of Green Tax ?
(A) It has been introduced with the aim of discouraging high consumption of petroleum products
(B) It is a tax levied by the Govt. in place of VAT as VAT is not very profitable for State Govts.
(C) It is just like a toll tax which will be charged from all the vehicles whenever they enter green areas of a city like hospitals, schools, and old age homes
(D) This is a tax levied on big commercial vehicles only with the aim of prohibiting them from entering residential areas and non commercial areas
(E) None of these
Ans : (E)
4. Very often we read in newspapers about 3G or 3rd Generation technology. This is a set of standards used by which of the following ?
(A) To combat climatic changes
(B) Production of Nuclear Energy
(C) Film Production
(D) Mobile Telecommunications
(E) All of these
Ans : (D)
5. Which of the following companies is not in the field of insurance business ?
(A) ICICI Prudential
(B) Bajaj Allianz
(C) Tata AIG
(D) AEGON Religare
(E) Royal Orchid
Ans : (E)
6. Many times we read that a corporate entity is in the process of raising its capital base. Why is a company required to raise money to strengthen its capital base ?
1. To finance its expansion plans
2. To finance its diversification plans
3. To repay its loans and borrowings
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (A)
7. Many times we read in newspapers that a company is planning to bring public issue. What does it mean ?
1. Shares of the company will be issued only through public sector organizations like banks/central financial institutions etc.
2. Shares of the company will be issued to general public only through primary market.
3. This means some stakeholders/promoters are willing to leave the company.
Hence, they wish to sell their stock to the general public.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (B)
8. Whenever some people wish to enter into business world, it is a must for them to approach a bank. What services do banks provide them in this regard ?
1. Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them.
2. Maintaining account books for them for their day to day activities so that they are not required to appoint account/finance personnel on a regular basis.
3. Lending money by way of overdraft installment loan, credit or advance for business activities.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 3
(E) None of these
Ans : (C)
9. As we all have noticed banks these days are giving more emphasis on ‘Branch less Banking’. What does this really means ?
1. Banks will not have many branches as used to be in the good old days. Instead the number of branches will be restricted and will conduct only a specified core business.
2. Banks will launch/operate many delivery channels like ATMs, Mobile Banking/Internet Banking etc. so that people are not required to visit a branch for their usual banking needs.
3. This means banks will issue only debit or credit cards for all types of day to day financial transactions.
Cheques/cash payments will not be allowed.
(A) Only 1
(B) Only 2
(C) Only 1 and 2
(D) Only 2 and 3
(E) All 1, 2 and 3
Ans : (D)
10. As per the news published in various financial newspapers Maruti Suzuki has no immediate plans to enter into ‘low cost segment’. This means—
1. Maruti-Suzuki will not reduce the price of its various products, as is being done by some other manufacturers.
2. Maruti-Suzuki does not want to produce a ‘Nano’ like low cost car in the near future.
3. Maruti-Suzuki wants to retain its existing position of luxury car makers and will not enter into the area of makers of cars for the general public.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (B)
11. Which of the following is not a function of a bank ?
(A) Providing project finance
(B) Selling Mutual Funds
(C) Deciding policy rates like CRR, Repo Rates/SLR etc.
(D) Settlement of payments on behalf of the customers
(E) All of these are functions of a bank
Ans : (C)
12. Which of the following is a form of ‘Small Savings Bank’ popular among the poor or children ?
(A) Core Banking
(B) Credit Banking
(C) Debit Card
(D) Merchant Banking
(E) Piggy Banking
Ans : (E)
13. As published in various newspapers India and European Union are trying to finalize a free trade pact. How will this helps India and EU ?
1. Both the parties will be able to export-import goods without tariffs, quotas and preferences on most of the goods and services traded between them.
2. The European Union will have to accept all payments in rupees only whereas India will accept all payments for its exports in Euro only. The Dollar will have no role in this business.
3. Both parties will have to decide the total value of trade between them in advance and will be bound to obey the commitment made thus.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (A)
14. The G-20 Summit in June 2010 is scheduled to be held at which of the following places ?
(A) London
(B) Washington
(C) Tokyo
(D) Paris
(E) Toronto
Ans : (E)
15. As we all know the Govt. of India has initiated several projects/schemes for revival and recharging of water bodies/lakes etc. What is meant by recharging of water bodies ?
1. Recharge in fact is deep drainage of water bodies so that water starts moving downwards from the surface.
2. Recharge is nothing but digging new wells and lakes so that more water is available for use.
3. Recharging means levy of a tax on use of ground water for private purposes. This is done in addition to the usual tax that civic bodies collect on the usual water supply.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (B)
16. As per the news published in various newspapers China had to face its first ‘Trade Deficit’ in six years. This means China—
(A) did not earn as much from its exports as it had to pay for its imports
(B) earn much more than its expectations on its exports and paid very less on imports
(C) has decided to stop imports and exports for the time being as it is producing just enough for tis consumption
(D) has failed to keep its commitment to supply (export) goods as promised to various countries. The result is it may have to devalue its currency (Yuan) as it has lost its credibility in the market
(E) None of these
Ans : (A)
17. Several Public Sector organizat ons like ONGC, SAIL and NTPC received ‘Scope Award.’ The award is given for which of the following ?
(A) Earning the highet profit amongst all PSUs
(B) For creating the maximum number of jobs in a year
(C) For donating the maximum amount in Pradhan Mantri Rahat Kosh in a year
(D) For cutting down expenditure by 50% or more in a year to wipe out losses made in the previous year
(E) Best Corporate Governance
Ans : (E)
18. Iron Ore is found in which of the following states in India ?
(A) Punjab
(B) Rajasthan
(C) Orissa
(D) Jammu & Kashmir
(E) Uttar Pradesh
Ans : (C)
19. Which of the following countries is in a deep crisis these days and is struggling to finance its budget deficit and govt. debt ?
(A) Russia
(B) Greece
(C) Britain
(D) USA
(E) None of these
Ans : (B)
20. As per the budget documents placed in the Parliament in February 2010, what are the challenges India is facing on its economic front ?
1. To quickly revert to the high GDP growth path of 9%.
2. Making development more inclusive.
3. To strengthen the governmental system and the process of governance at different levels.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (D)
21. Prabha Rao was the Governor of which of the following States immediately prior to her death ?
(A) Rajasthan
(B) Himachal Pradesh
(C) Maharashtra
(D) Goa
(E) None of these
Ans : (A)
22. Who amongst the following is not a famous Lawn Tennis player ?
(A) Cara Black
(B) Mike Bryan
(C) Denis Ndiso
(D) Serena Williams
(E) Leander Paes
Ans : (C)
23. Dr. K. Radhakrishnan whose name was in the news recently is the Chariman of—
(A) Indian Space Research Organisation
(B) Atomic Energy Commission
(C) Department of Information Technology
(D) Unique Identification Authority of India
(E) None of these
Ans : (A)
24. Which of the following awards is given by the Govt. of Madhya Pradesh ?
(A) Shanti Swarup Bhatnagar Award
(B) Jawaharlal Nehru Award
(C) Shikhar Samman
(D) Pravasi Bhartiya Samman
(E) None of these
Ans : (C)
25. Which of the following terms is not used in Cricket ?
(A) Ashes
(B) Backfoot shot
(C) Smash
(D) Crease
(E) All are used in cricket
Ans : (C)
26. Which of the following cups/trophies is not given for excellence in the game of Badminton ?
(A) Uber Cup
(B) Thomas Cup
(C) Syed Modi Memorial Trophy
(D) Aros Junior Cup
(E) Merdeka Cup
Ans : (E)
27. The Ministerial level meeting of the BASIC Group of countries was held in New Delhi in January 2010. Which of the following is not a member of the BASIC Group ?
(A) Brazil
(B) South Africa
(C) Russia
(D) China
(E) India
Ans : (C)
28. Which of the following Bills recently approved in the Union Cabinet will help in better health services in the country ?
(A) Right to Better Health Services Bill
(B) National Health Care Bill
(C) Clinical Establishments (Registration & Regulation) Bill
(D) Essential Services Bill
(E) None of these
Ans : (C)
29. Who amongst the following is a Padmashri Award Winner given away recently ?
(A) Chanda Kochhar
(B) Kumar Mangalam Birla
(C) Saif Ali Khan
(D) Harsh Pati Singhania
(E) None of these
Ans : (C)
30. Who amongst the following is not a famous author ?
(A) V. S. Naipual
(B) Leander Paes
(C) Anita Desai
(D) Kiran Desai
(E) Chetan Bhagat
Ans : (B)
31. Ivo Josipovic whose name was in news recently is the—
(A) Prime Minister of Croatia
(B) President of Croatia
(C) President of Barbados
(D) Prime Minister of Bolivia
(E) None of these
Ans : (B)
32. Priyanka Chopra was given a National Award at the 56th National Awards for her acting for which of the following films ?
(A) Love Story 2050
(B) What’s your Rashee
(C) Kaminey
(D) Fashion
(E) None of these
Ans : (D)
33. Roger Federer is a famous—
(A) Film actor
(B) Author
(C) Lawn Tennis Player
(D) Cricketer
(E) None of these
Ans : (C)
34. Who amongst the following was awarded the prestigious Dada Saheb Phalke Award recently ?
(A) V. K. Moorthy
(B) Madhur Bhandarkar
(C) Mahesh Bhatt
(D) Rekha
(E) Hema Malini
Ans : (A)
35. Lee Myung-bak who was the Chief Guest at 61st Republic Day Function of India is the—
(A) President of South Korea
(B) Prime Minister of South Korea
(C) President of Vietnam
(D) Prime Minister of Vietnam
(E) None of these
Ans : (A)
36. The Late Jyoti Basu was associated with which of the following political parties ?
(A) BJP
(B) CPI (M)
(C) Congress
(D) Samajwadi Party
(E) None of these
Ans : (B)
37. Which of the following schemes launched by the Govt. of India is a scheme to improve the performance of the agricultural sector ?
(A) National Horticulture Mission
(B) Pulse Polio Abhiyan
(C) Old Age Pension Scheme
(D) Bharat Nirman Yojana
(E) None of these
Ans : (A)
38. ‘LBW’ is a term related to the game of—
(A) Badminton
(B) Cricket
(C) Hockey
(D) Football
(E) None of these
Ans : (B)
39. ‘Saraswati Samman’ is an award given for excellence in the field of—
(A) Sports
(B) Social Service
(C) Literature
(D) Science & Technology
(E) None of these
Ans : (C)
40. ‘Heavy Water’ is used in which of the following fields ?
(A) Thermal Power
(B) Cement
(C) Iron & Steel
(D) Nuclear Power
(E) None of these
Ans : (D)
41. Which of the following is a Horticulture Crop ?
(A) Paddy
(B) Wheat
(C) Mango
(D) Bajara
(E) None of these
Ans : (C)
42. Dr. Amartya Sen is a famous—
(A) Physicist
(B) Chemical Engineer
(C) Psychologist
(D) Economist
(E) None of these
Ans : (D)
43. Which of the following nations is considered the originator of the concept of Micro Finance ?
(A) India
(B) Bangladesh
(C) South Africa
(D) USA
(E) None of these
Ans : (B)
44. India’s first transgenic Crop was—
(A) Potato
(B) Brinjal
(C) Sugarcane
(D) Bt. cotton
(E) None of these
Ans : (D)
45. ‘White Tiger’ is a book written by—
(A) R. K. Narayanan
(B) Shobha De
(C) Khushwant Singh
(D) Arundhati Roy
(E) Aravind Adiga
Ans : (E)
46. Shanti Swarup Bhatnagar Award is given for excellence in the field of—
(A) Literature
(B) Music
(C) Sports
(D) Science & Technology
(E) None of these
Ans : (D)
47. Usain Bolt is a famous—
(A) Cricket player
(B) Athlete
(C) Badminton Player
(D) Footballer
(E) None of these
Ans : (B)
48. Govt. normally does not announce the Minimum Support Price (MSP) of—
(A) Wheat
(B) Paddy
(C) Sugarcane
(D) Jute
(E) All of these
Ans : (D)
49. At present Dr. D. Subba Rao is the—
(A) Governor of Orissa
(B) Deputy Chairman of the Planning Commission
(C) Chairman of the FICCI
(D) India’s Representative in IMF
(E) None of these
Ans : (E)
50. Banks borrow money from the RBI on which of the following rates ?
(A) Bank rate
(B) CRR
(C) SLR
(D) Reverse Repo Rate
(E) Repo Rate
Ans : (E)

Corporation Bank PO Exam Paper 2010

Socio-Economic Developments

(Held on 09-05-2010)

1. As a policy to boost the agricultural sector in the country, the Govt. of India has taken several special measures over the years. Which of the following cannot be considered a measure/ measures which will have a direct impact(s) on the agricultural sector ?
1. Setting up of a National Food Processing Bank.
2. Opening irrigation, sanitation and water projects for development under public private participation.
3. Efforts to bring down fiscal deficit to 5•5 per cent level of GDP.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (C)
2. The Govt. of India is plannning to bring a Second Green Revolution. This will be launched specifically for which of the following parts of the country ?
(A) North East and Eastern Regions
(B) Central India
(C) Jammu & Kashmir
(D) Tamil Nadu, Kerala and Andhra Pradesh
(E) None of these
Ans : (A)
3. As we all know, the limit of exemption on personal income tax has been raised by Rs. 10,000. Whenever a relief in direct taxes is given, the underlying motive is always to make money available for which of the following purposes ?
1. Savings
2. Investment for High returns
3. Personal Consumption
(A) Only 1
(B) Only 2
(C) Only 1 and 3
(D) Only 2 and 3
(E) None of these
Ans : (C)
4. As we know, a special scheme ‘One Village One Project’ is in vogue in some parts of our country and has proved a good incentive to boost the rural economy and the agricultural sector. Now the Govt. has decided to develop 60,000 villages to produce which of the following single crops as a major crop ?
(A) Pulses or Oilseeds
(B) Wheat or Bajra
(C) Sugar or Jute
(D) Sunflower or Rose flower
(E) None of these
Ans : (A)
5. The Govt. of India has decided to bring down the fiscal deficit from 6•6 per cent to the level of 5•5 per cent of the GDP so that it can meet growth targets well in time. This target of 5•5 per cent is to be achieved by the end of—
(A) January 2011
(B) March 2011
(C) December 2010
(D) January 2012
(E) None of these
Ans : (D)
6. Some economists and financial experts are of the opinion that the Finance Minister of India has done a good job by allocating a fairly good share of budget to ensure that the benefits of the growth also reach the poor and unorganized sectors of the society. What amount in terms of percentage has been allocated to various schemes of the social sector in the Union Budget 2010-11 ?
(A) 5%
(B) 7•5%
(C) 10%
(D) 12•5%
(E) None of these
Ans : (E)
7. Many people talk about the roll back of stimulus packages provided last year by the Govt. of India to help certain sectors. If these stimulus packages are rolled back, this would mean that—
1. those who have availed these benefits would be required to return them to the Govt. of India.
2. no such incentive would be available henceforth to these sectors.
3. all such benefits/incentives would be available to all the people across the country and will not be restricted to some selected few.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 3
(E) Only 2 and 3
Ans : (C)
8. In order to develop infrastructure in the country at a faster pace, the Govt. of India has fixed some targets. In order to achieve this target, at present, how many kilometers of highway is required to be constructed per day ?
(A) 5 km
(B) 10 km
(C) 15 km
(D) 20 km
(E) None of these
Ans : (D)
9. “South India will get K-G gas by 2012” was the news in a major financial newspaper. ‘K-G’ is the abbreviated name of which of the following ?
(A) Karnataka-Goa
(B) Kaveri-Ganga
(C) Krishna-Godavari
(D) Karnataka-Gulf
(E) None of these
Ans : (C)
10. Many a times, we read in newspapers that some big banks have revised their lending rates to make them dearer or cheaper. Though the decision to raise the lending rates is always in the hands of the banks normally they announce this decision of theirs—
1. immediately after the Union Budget is presented in the Lok Sabha every year.
2. when the RBI makes changes in its policy rates.
3. when the Monetary and Credit Policy of the RBI is reviewed periodically.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 2 and 3
(E) All 1, 2 and 3
Ans : (C)
11. How much amount in cash is the Govt. of India planning to infuse in public sector banks, to strengthen their capital base this year ?
(A) Rs. 10,000 crore
(B) Rs. 12,500 crore
(C) Rs. 14,000 crore
(D) Rs. 16,500 crore
(E) None of these
Ans : (E)
12. As we all know, the rate of MAT has been increased from the present 15% to 18% with effect from April 2010. What is the full form of MAT ?
(A) Maximum Alternate Tax
(B) Minimum Alternate Tax
(C) Minimum Affordable Tax
(D) Maximum Affordable Tax
(E) None of these
Ans : (B)
13. One of the headlines in a major financial newspaper recently was “Is Spain the next Greece or Italy or Portugal ?” What is the actual meaning of this headline because of which the author has been comparing Spain with the other three countries ?
(A) All these three countries have abandoned the membership of the European Union. Spain is also planning to do so
(B) All these three countries were the first to come out of recent global recession and that too within a short span of time. Spain is next in queue to declare itself free from the trouble
(C) These three nations are badly trapped in a situation where their economy is proceeding from bad to worse condition. Spain also appears to be in the same situation
(D) Greece, Itlay and Portugal have signed some special agreements with US and are availing stimulus packages to promote their exports to US on some specific terms. Spain is also willing to do the same
(E) None of these
Ans : (C)
14. Many times we read in newspapers that several companies are adopting the FCCBs route to raise capital. What is the full form of FCCBs ?
(A) Foreign Currency Convertible Bonds
(B) Foreign Convertible Credit Bonds
(C) Financial Consortium and Credit Bureau
(D) Future Credit and Currency Bureau
(E) None of these
Ans : (A)
15. The Govt. of India has asked all big companies and corporates to create a separate fund for their ‘Corporate Social Responsibility Activities’. What is/are the purpose(s) of this directive issued by the Govt. ?
1. To ensure that companies spend some money on social activities.
2. To bring transparency in matters of financial transactions and dealings by corporates.
3. To ensure that corporate entities do not get involved in non commercial activities in the name of social activities as they are required to spend money only on the welfare of the employees and their families.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (B)
16. Which of the following is an innovative mechanism adopted by banks to meet the targets fixed for lending to priority sector by the Banks ?
(A) Buying & Selling of Priority Sector Lending Certification
(B) Sale of Kisan Vikas Patra
(C) Inter Bank Participation Certificates
(D) Adoption of Core Banking Solution
(E) None of these
Ans : (C)
17. The Reserve Bank of India (RBI) recently announced a hike in some policy rates and also indicated that there may be another change in near future. Which of the following is/are considered a policy rate(s) in the hands of the RBI ?
1. Repo Rate
2. SLR
3. Inflation
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (D)
18. Zain, which was in news recently, is a company based in which of the following nations ?
(A) Kuwait
(B) South Africa
(C) UAE
(D) China
(E) None of these
Ans : (A)
19. Who amongst the following was awarded the prestigious ‘Moortidevi Award’ recently for his literary works ? (Awardee is a Minister in the Union Cabinet)
(A) Veerappa Moily
(B) Pranab Mukherjee
(C) P. Chidambaram
(D) Kapil Sibal
(E) None of these
Ans : (A)
20. The Indian Ministry of Agriculture has decided that despite good stocks of wheat and rice, India will not export the excess stocks. Which of the following may be the reason(s) owing to which the Ministry has taken this decision ?
1. Indian wheat and rice are not in much demand in foreign countries. Hence, very few are takers for the same.
2. The National Food Security Bill has a provision to provide 25 kg of wheat or rice to the families living below poverty line. A huge stock of grains will be needed for the same in near future.
3. Since most countries are still to recover from the global recession, a formula is being worked out where imports and exports will be compensated simply by exchange of commodities available with the countries. India is planning to use its food grain stocks for the same.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (B)
21. As per the reports published in various newspapers, RBI has asked banks to make a plan to provide banking services to all villages having a population of 2000. This directive issued by the RBI will fall in which of the following categories ?
(A) Plan for Financial Inclusion
(B) Efforts to meet the targets of Priority Sector Lending
(C) Extension of Relief Packages to the Farmers
(D) Extensions of Internal and Branchless Banking
(E) None of these
Ans : (A)
22. Which of the following is not a bank or finance company ?
(A) Barclays
(B) BNP Paribas
(C) Lufthansa
(D) HSBC
(E) All are banks/finance companies
Ans : (C)
23. The Indian Railways is in the process of purchasing Bullet Train Technology from which of the following nations ?
(A) France
(B) China
(C) Japan
(D) Russia
(E) Spain
Ans : (C)
24. Some State Govts. have started a project ‘Save Snow Leopards’. Snow Leopards are found mainly in—
(A) Jammu & Kashmir
(B) Rajasthan
(C) Kerala
(D) Punjab
(E) Tamil Nadu
Ans : (A)
25. India recently signed an agreement for an ‘Action Plan to Advance Security Cooperation’ with which of the following nations ?
(A) China
(B) Bangladesh
(C) Pakistan
(D) Nepal
(E) Japan
Ans : (E)
26. Sanya Richards who was named as the IAAF World Athlete of 2009 represents which of the following countries ?
(A) Jamaica
(B) Kenya
(C) France
(D) Britain
(E) USA
Ans : (E)
27. Who amongst the following was adjudged the European Footballer of the year 2009 ?
(A) Roberto Baggio
(B) Edger Davids
(C) Xavi Hamandez
(D) Cristiano Ronaldo
(E) Lionel Messi
Ans : (E)
28. The latest nuclear power reactor of India recently attained criticality at Rawatbhata. Rawatbhata is a place in—
(A) Uttar Pradesh
(B) Madhya Pradesh
(C) Uttarakhand
(D) Orissa
(E) Rajasthan
Ans : (E)
29. Who amongst the following has recently received the Highest Civilian Honour of France ?
(A) Kareena Kappor
(B) A. R. Rahman
(C) Javed Akhtar
(D) Lata Mangeshkar
(E) None of these
Ans : (D)
30. Who amongst the following represented India at the 15th United Nations Climate Change Conference 2009 held in Copenhagen ?
(A) Smt. Sonia Gandhi
(B) Smt. Pratibha Patil
(C) Dr. Manmohan Singh
(D) Smt. Meira Kumar
(E) None of these
Ans : (C)
31. Three Indian sportsmen, C. Raju Srither, I.R. Sanam and Ratan Singh recently went to Indonesia and won Gold Medals in one of the events. All three are associated with which of the following sports ?
(A) Weightlifting
(B) Rifle Shooting
(C) Swimming
(D) Golf
(E) Archery
Ans : (E)
32. A two-day meeting of the South Asian Association for Regional Cooperation (SAARC) was organized recently in—
(A) Thimpu
(B) Islamabad
(C) Kabul
(D) Dhaka
(E) New Delhi
Ans : (A)
33. By nominating its Ambassador to which of the following countries after a gap of five years has the USA established its diplomatic relation with it ?
(A) Syria
(B) Iran
(C) Iraq
(D) China
(E) None of these
Ans : (A)
34. Which of the following organizations/ agencies is providing a US $ 850 million loan to India for the development of its infrastructure and Khadi industry ?
(A) World Bank
(B) European Union Finance Corporation
(C) Asian Development Bank
(D) Govt. of South Africa
(E) None of these
Ans : (C)
35. Goodluck Jonathan whose name was in news recently is from which of the following countries ?
(A) Kenya
(B) Uganda
(C) Nigeria
(D) Sudan
(E) None of these
Ans : (C)
36. The census in India is done after a gap of every—
(A) 5 years
(B) 10 years
(C) 12 years
(D) 15 years
(E) None of these
Ans : (B)
37. Pankaj Advani won which of the following titles in the year 2009 ?
(A) Asian Games Gold Medal
(B) Asian Billiards Championship
(C) WSA Challenge Tour
(D) World Professional Billiards Championship
(E) None of these
Ans : (D)
38. Which of the following awards is given for Excellence in the field of sports ?
(A) Kalinga Award
(B) Golden Pen Award
(C) Arjuna Award
(D) Bharat Ratna
(E) None of these
Ans : (C)
39. Which of the following states started ‘April Mandis’ project in all districts of the state to ensure the supply of vegetables and fruits at fair prices ?
(A) Gujarat
(B) Uttar Pradesh
(C) Haryana
(D) Delhi
(E) None of these
Ans : (C)
40. Which of the following terms is not used in Economics ?
(A) Balanace of Trade
(B) Centrifugal force
(C) Break even
(D) Fiscal Deficit
(E) Capital Account
Ans : (B)
41. The Indira Gandhi Peace Prize 2009 was given to the President of—
(A) Fiji
(B) Bhutan
(C) Nepal
(D) Bangladesh
(E) None of these
Ans : (D)
42. The Govt. of India recently launched the Jawaharlal Nehru National Solar Mission. This mission is one of the key missions on India’s National Action Plan on—
(A) Second Green Revolution
(B) Climate Change
(C) Recharging of Water bodies
(D) Electricity to all
(E) None of these
Ans : (B)
43. Voting in local bodies elections is compulsory in which one of the following states ?
(A) Delhi
(B) Maharashtra
(C) Kerala
(D) Gujarat
(E) None of these
Ans : (D)
44. India’s exports of which of the following to USA has been growing at a fast pace despite the global slowdown and recession ?
(A) Handicrafts and Carpets
(B) Textiles and Clothing
(C) Horticultural products
(D) Foodgrains
(E) Services
Ans : (E)
45. Russia recently agreed to resume import of natural gas from which of the following countries after a gap of about a month following a dispute over prices of the same ?
(A) Iran
(B) Turkmenistan
(C) China
(D) Kazakhstan
(E) N. Korea
Ans : (B)
46. India recently signed an agreement for cooperation in the field of nuclear power for civil purposes. This agreement is free from any restrictions on India. India signed this agreement with—
(A) France
(B) Germany
(C) USA
(D) Canada
(E) Russia
Ans : (E)
47. ‘Between the Assassinations’ is a book written by—
(A) Chetan Bhagat
(B) Kiran Desai
(C) Shobha De
(D) Vikram Seth
(E) Arvind Adiga
Ans : (E)
48. Which of the following prizes/ awards is not given for Excellence in the field of Literature ?
(A) Dronacharya Award
(B) Aga Khan Prize for Fiction
(C) Commonwealth Award
(D) Nobel Prize
(E) Man Booker Prize
Ans : (A)
49. Which of the following terms is not used in the game of Hockey ?
(A) Centre
(B) Downswing
(C) Drop pass
(D) Goal line
(E) Blue line
Ans : (B)
50. ‘Invisible’ is a novel written by—
(A) Vikram Seth
(B) Chetan Bhagat
(C) Anita Desai
(D) Meghnad Desai
(E) Paul Auster
Ans : (E)

State of India's Economy 2010-11

In 2010-11 the Indian economy emerged from the slowdown caused by the global financial meltdown of 2007-09 with remarkable rapidity. As per the Advance Estimates of the Central Statistics Office, released on February 7, 2011, the turnaround was strong, with a rebound in agriculture and continued momentum in manufacturing. The deceleration in community, social, and personal services, as also industry, remained a cause for concern.

The medium to long-run prospect of the economy, including the industrial sector, however, continues to remain positive. On the demand side, a rise in savings and investment, and pick-up in private consumption resulted in strong growth of GDP at constant market prices at 9.7 per cent in 2010-11.

Food items largely drove inflation, which remained at elevated levels for greater part of the year, though the goods that were inflating at the beginning of the year were different from the goods for which prices had risen in the end part of the year.

The rise in the purchasing power owing to the rapid growth of the economy and inclusive programmes like the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) partly might have contributed to the upward trend in inflation.

Despite tightening of the money markets and moderate growth in deposits, the financial situation remained orderly with a pick-up in credit growth, vibrant equity market and stable foreign exchange market.

In last three years the Indian economy had been severely buffeted by two shocks in rapid succession—the onset of global financial crisis in 2007-09 and erratic monsoon resulting in drought in 2009-10. This period of economic stress severely tested the policymakers. Yet the Indian economy came through with resilience and strength, by following counter-cyclical macro-economic policies, structural measures to promote growth, and social spending to provide a stronger foundation to protect the poor.

The estimated level of growth in the GDP at constant 2004-05 prices at factor cost (real GDP) in 2010-11 was composed of: growth of 5.4 per cent in agriculture, growth of 8.1 per cent in industry, and a decelerated growth of 9.6 per cent in services.

The service sector, with a share of 57.3 per cent in 2009-10, has, however, started to gather momentum and given the fact that it is the power house of the Indian growth story, this portends well for the medium-term prospects. The savings rate has gone up to a level of 33.7 per cent and investment rate is up to 36.5 per cent of the GDP in 2009-10.

The fiscal policy being followed is now on the consolidation path with revenues doing well on the strength of the rebound in economic activity and, going forward, this is likely to yield growth dividends in the medium to long term.

Headline inflation, year-on-year, as measured by the wholesale price index (WPI), remained at elevated levels from December 2009, even though it has, by and large, been on downward trajectory since April 2010, when the WPI inflation peaked at 11 per cent year-on-year. Inflation in primary articles, particularly food articles, was the main contributor to the elevated levels of WPI inflation. Inflation in food articles remained in double digits for 76 weeks from June 5, 2009.

The inflationary pressures on the domestic front are likely to be exacerbated by the high levels of global commodity prices and also the easy money policy being followed in several industrial nations trying to jump-start their own economies.

The growth of agriculture and allied sectors continues to be a critical factor in the overall performance of the Indian economy. For four consecutive years from 2005-06 to 2008-09, food-grains production registered a rising trend and touched a record level of 234.47 million tonnes in 2008-09. The production of food-grains declined o 218.20 million tonnes during 2009-10 (4th Advanced Estimates) due to long spell of drought in various parts of India in 2009.

The agricultural sector, however, is today at a crossroads with rising demand for food items and relatively slow supply response in many commodities, resulting in spikes in food inflation. The technological breakthrough achieved in 1960s is gradually waning. The need for a second green revolution is being recognized more than ever before. There is a need to significantly step up both private and public investment in the agricultural sector to ensure sustained growth so as to achieve the target growth of around 4 per cent per annum.

Six core industries that have a large bearing on infrastructure registered a growth of 6.6 per cent (provisional) in December 2010, compared to 6.2 per cent in December 2009.  The investment in infrastructure reached 7.18 per cent of GDP in 2008-09. Rapid reduction of the infrastructure deficit holds the key to competitiveness in an increasingly globalized economic environment.

In 2010-11, the achievement under various phases of the National Highway Development Project (NHDP), up to November 2010, was about 1007 km of road. About 25 per cent of the total length of National Highways continues to be single lane; about 52 per cent is two-lane standard; and the balance 23 per cent is four-lane standard or more.

In the civil aviation sector, the scheduled domestic passenger traffic at 51.53 million clocked a growth rate of 19 per cent during January-December 2010, as compared to a level of 43.3 million during the corresponding period in 2009. The total number of non-scheduled operators stood at 121 in December 2010 with 360 aircraft in their fleet. 12 scheduled airlines are operational (10 passenger and 2 cargo).

Total telephone connections increased to 84.5 per cent in November 2010 as against a meager 5 per cent in 1999. Tele-density, an important indicator of telecom penetration, rose to 64.34 per cent. In rural areas the tele-density rose to 30.18 per cent while in urban areas it has risen to 143.95 per cent at the end of November 2010.

The services sector has played a dominant role in the Indian economy with a 57.3 per cent share in the GDP. The sector showed a growth rate of 10.1 per cent in 2009-10. It has a high share in FDI equity inflows with the financial and non-financial services category alone contributing 21 per cent during April 2000 to November 2010; and a 35 per cent share in total exports with 27.4 per cent export growth in the fist half of 2010-11.

High-growth services categories include financing, insurance, real estate, and business services and transport. Growth of trade, hotels and restaurants, which slowed down in 2008-09, has recovered moderately in 2009-10. Among other services, education and medical health are two important services in terms of relative share of the GDP. They had growth rate of 13.9 per cent and 5.3 per cent, respectively, in 2009-10.

In tandem with world trade volumes, India’s exports fell rapidly following the deepening of the global financial crisis through 2008-09. The exports, however, rose in the second half of 2009-10, which continued through 2010-11 until June 2010. Thereafter, growth decelerated till October 2010 and picked up subsequently to reach 36.4 per cent in December 2010, which is the highest growth in last two years. The cumulative export growth in April-December 2010-11 was 29.5 per cent and reached $ 164.7 billion during the period.

India’s merchandise imports, also affected by the global recession, fell to $288.4 billion with a negative growth of -5.0 per cent in 2009-10. Trade deficit (on customs basis) increased by 2.4 per cent to $82 billion in 2010-11 (April-December). The lower level of surpluses on the invisible balance, the relatively higher import growth compared to export growth in fist half of 2010-11 raised concerns of unsustainable current account deficit levels.

Foreign exchange reserves increased from $ 252 billion at the end of March 2009 to $279.1 billion at the end of March 2010. Of the total increase, $13.6 billion was account of valuation gain and remaining in account of Balance of Payment (BoP).

India’s external debt stood at $ 295.8 billion at the end of September 2010, recording an increase of $ 33.5 billion (12.8 per cent) over the level of end-March 2010. The rise in debt was largely due to higher commercial borrowings, short-term trade credits, and multilateral government borrowings.

In 2007-09, a surge in capital flows far in excess of the absorptive capacity and with implications for competitiveness had complicated monetary management on account of trade-offs involving the impossible objectives of open capital account, exchange rate stability and monetary policy independence. However, with the recovery in 2009-10 and 2010-11, the external sector broadly remained supportive as rising capital flows easily financed the elevated levels of current account deficits. The concerns of sustainability, however, remain.

On the monetary front, the Reserve Bank of India (RBI) raised the policy rates six times during 2010-11, wherein the repo rate under its liquidity adjustment facility was increased cumulatively by 175 basis points, raising it to 6.5 per cent, and the reverse repo rate was increased by 225 bps, raising it to 5.5 per cent. The cash reserve ration (CRR) was at 6 per cent of net demand and time liabilities (NDTL) of banks. The steps by RBI resulted in tightening of liquidity conditions.

With the clear evidence of economic recovery in 2009-10, the 2010 Budget resumed the path of fiscal consolidation with a partial exit from the stimulus measures. The fiscal outcome in the first nine months of 2010-11 remained broadly on the consolidation track chalked out by the Budget. With a much higher than budgeted realization in non-tax revenues, arising from telecom 3G/BWA auctions, there was headroom for higher expenditure at the given fiscal deficit targets.

The expenditure on social services, by Central and State governments combined, has increased to 25.2 per cent of GDP in 2010-11. Sector-specific priorities are reflected in the continued higher budgetary allocations in areas like rural development, education, medical and public health, family welfare, water supply and sanitation, housing, and welfare of Scheduled Tribes and Castes, as also Other Backward Classes.

On the employment front, India has been able to withstand the adverse impact of the global crisis. The upward trend in employment has been continuously observed since July 2009. During the quarter July to September 2010, the overall employment has been estimated to increase by 4.35 lakh. The progress under the MGNREGA that guarantees wage employment on an unprecedented scale has been satisfactory. During 2010-11, 4.10 crore households were provided employment under the scheme till December 2010.

As per the Economic Survey 2011, India’s real GDP is expected to grow by 9 per cent in 2011-12. The savings and investment rates had gone down a little during 2008-09 because of the deliberate decision by the government to encourage consumption as an antidote to the economic downturn. The 2009-10 data, however, shows that the savings rate has gone up from 32.3 per cent in previous year to 33.7 per cent. The investment rate has also increased to 36.5 per cent. Since savings and investments now are showing a positive momentum and the government is implementing a gradual exit from the stimulus package, the savings and investment rates are likely to rise further.

The point to note is that once an economy begins to operate close to its capacity, the savings and investment rates are no longer such effective drivers of GDP growth, which then depends much more on skill development and innovative activity in the country. Fortunately, there is awareness of this in India and efforts are afoot in terms of budgetary allocation and actual initiatives to boost the development of skill and human capital. As a consequence, the next two decades should see the Indian economy growing faster than it has done any time in the past.

However, forecasts, no matter how carefully they are made, are subject to many factors. A sharp deterioration in weather conditions or a disproportionate spike in the price of crude can lead to slower growth. Certain amount of uncertainty continues to prevail over economic conditions in Europe and USA. The fiscal situation and level of sovereign debt in a large number of industrialized nations are in a somewhat tenuous situation. India will be adversely hit in the event of a serious crisis in any of the industrialized nations.