General Knowledge

                                                             Sample Paper 2


1. RBI’s open market operation transactions are
carried out with a view to regulate—
(A) Liquidity in the economy
(B) Prices of essential commodities
(C) Inflation
(D) Borrowing power of the banks
(E) All the above


2. When more than one banks are allowing
credit facilities to one party in coordination
with each other under a formal arrangement,
the arrangement is generally known as—
(A) Participation
(B) Consortium
(C) Syndication
(D) Multiple banking
(E) None of these

3. Open market operations, one of the measures
taken by RBI in order to control credit
expansion in the economy means —
(A) Sale or purchase of Govt. securities
(B) Issuance of different types of bonds
(C) Auction of gold
(D) To make available direct finance to
borrowers
(E) None of these


4. The bank rate means—
(A) Rate of interest charged by commercial
banks from borrowers
(B) Rate of interest at which commercial
banks discounted bills of their borrowers
(C) Rate of interest allowed by commercial
banks on their deposits
(D) Rate at which RBI purchases or rediscounts
bills of exchange of commercial
banks
(E) None of these


5. What is an Indian Depository Receipt ?
(A) A deposit account with a Public Sector
Bank
(B) A depository account with any of
Depositories in India
(C) An instrument in the form of depository
receipt created by an Indian depository
against underlying equity shares of the
issuing company
(D) An instrument in the form of deposit
receipt issued by Indian depositories
(E) None of these


6. An instrument that derives its value from a
specified underlying (currency, gold, stocks
etc.) is known as—
(A) Derivative
(B) Securitisation Receipts
(C) Hedge Fund
(D) Factoring
(E) Venture Capital Funding


7. Fiscal deficit is—
(A) total income less Govt. borrowing
(B) total payments less total receipts
(C) total payments less capital receipts
(D) total expenditure less total receipts
excluding borrowing
(E) None of these


8. In the Capital Market, the term arbitrage is
used with reference to—
(A) purchase of securities to cover the sale
(B) sale of securities to reduce the loss on
purchase
(C) simultaneous purchase and sale of
securities to make profits from price
(D) variation in different markets
(E) Any of the above


9. Reverse repo means—
(A) Injecting liquidity by the Central Bank of
a country through purchase of Govt. securities
(B) Absorption of liquidity from the market
by sale of Govt. securities
(C) Balancing liquidity with a view to
enhancing economic growth rate
(D) Improving the position of availability of
the securities in the market
(E) Any of the above


10. The stance of RBI monetary policy is—
(A) inflation control with adequate liquidity
for growth
(B) improving credit quality of the Banks
(C) strengthening credit delivery mechanism
(D) supporting investment demand in the
economy
(E) Any of the above


11. Currency Swap is an instrument to manage—
(A) Currency risk
(B) interest rate risk
(C) currency and interest rate risk
(D) cash flows in different currencies
(E) All of the above


12. ‘Subprime’ refers to—
(A) lending done by banks at rates below
PLR
(B) funds raised by the banks at sub-Libor
rates
(C) Group of banks which are not rated as
prime banks as per Banker’s Almanac
(D) lending done by financing institutions
including banks to customers not
meeting with normally required credit
appraisal standards
(E) All of the above


13. Euro Bond is an instrument—
(A) issued in the European market
(B) issued in Euro Currency
(C) issued in a country other than the country
of the currency of the Bond
(D) All of the above
(E) None of these


14. Money Laundering normally involves—
(A) placement of funds
(B) layering of funds
(C) integration of fund
(D) All of(A),(B) and (C)
(E) None of (A), (B) and (C)


15. The IMF and the World Bank were conceived
as institutions to—
(A) strengthen international economic cooperation
and to help create a more< stable and prosperous global economy
(B) IMF promotes international monetary
cooperation
(C) The World Bank promotes long term
economic development and poverty
reduction
(D) All of (A), (B) and (C)
(E) None of (A), (B) and (C)


16. Capital Market Regulator is—
(A) RBI
(B) IRDA
(C) NSE
(D) BSE
(E) SEBI


17. In the term BRIC, R stands for—
(A) Romania
(B) Rajithan
(C) Russia
(D) Regulation
(E) None of these


18. FDI refers to—
(A) Fixed Deposit Interest
(B) Fixed Deposit Investment
(C) Foreign Direct Investment
(D) Future Derivative Investment
(E) None of these


19. What is Call Money ?
(A) Money borrowed or lent for a day or
over night
(B) Money borrowed for more than one day
but upto 3 days
(C) Money borrowed for more than one day
but upto 7 days
(D) Money borrowed for more than one day
but upto 14 days
(E) None of these


20. Which is the first Indian company to be listed
in NASDAQ ?
(A) Reliance
(B) TCS
(C) HCL
(D) Infosys
(E) None of these


21. Which of the following is the Regulator of the
credit rating agencies in India ?
(A) RBI
(B) SBI
(C) SIDBI
(D) SEBI
(E) None of these


22. Who is Brand Endorsing Personality of Bank
of Baroda ?
(A) Juhi Chawla
(B) Kiran Bedi
(C) Amitabh Bachchan
(D) Kapil Dev
(E) None of these


23. The branding line of Bank of Baroda is—
(A) International Bank of India
(B) India’s International Bank
(C) India’s Multinational Bank
(D) World’s local Bank
(E) None of these


24. The logo of Bank of Baroda is known as—
(A) Sun of Bank of Baroda
(B) Baroda Sun
(C) Bank of Baroda’s Rays
(D) Sunlight of Bank of Baroda
(E) None of these


25. Which of the following statements(s) is/are
True about the exports of China which is a
close competitor of India ?
(i) China’s economic success is basically on
the fact that it exports cheaper goods to
rich nations like the USA, etc.
(ii) In the year 2007 China’s exports became
almost 40% of its GDP.
(iii) When compared to India China’s share
in the World Exports is more than 30%
whereas India’s share is mere 6% of the
global exports.

(A) Only (i)
(B) Only (ii)
(C) Both (i) and (ii)
(D) All (i), (ii) and (iii)
(E) None of these


26. One of the major challenges banking industry
is facing these days is money laundering.
Which of the following acts/norms are
launched by the banks to prevent money
laundering in general ?
(A) Know Your Customer Norms
(B) Banking Regulation Act
(C) Negotiable Instrument Act
(D) Narcotics and Psychotropic Substance
Act
(E) None of these


27. Lot of Banks in India these days are offering
M-Banking Facility to their customers. What
is the full form of ‘M’ in ‘M-Banking’ ?
(A) Money
(B) Marginal
(C) Message
(D) Mutual Fund
(E) Mobile Phone


28. Which of the following is/are true about the
‘Sub-Prime Crisis’ ? (The term was very
much in news recently.)
(i) It is a mortgage crisis referring to credit
default by the borrowers.
(ii) Sub-Prime borrowers were those
borrowers who were rated low and were
high risk borrowers.
(iii) This crisis originated because of
negligence in credit rating of the
borrowers.
(A) Only (i)
(B) Only (ii)
(C) Only (iii)
(D) All (i), (ii) and (iii)
(E) None of these

29. Which of the following is not the part of the
structure of the Financial System in India ?
(A) Industrial Finance
(B) Agricultural Finance
(C) Government Finance
(D) Development Finance
(E) Personal Finance

30. Which of the following is not the part of the
scheduled banking structure in India ?
(A) Money Lenders
(B) Public Sector Banks
(C) Private Sector Banks
(D) Regional Rural Banks
(E) State Co-operative Banks

31. As we all know Govt. of India collects tax
revenue on various activities in the country.
Which of the following is a part of the tax
revenue of the Govt. ?
(i) Tax on Income
(ii) Tax on Expenditure
(iii)Tax on Property or Capital Asset
(iv) Tax on Goods and Services

(A) Both (i) and (iii) only
(B) Both (ii) and (iv) only
(C) All (i), (ii), (iii) and (iv)
(D) Only (ii), (iii) and (iv)
(E) None of these

32. We very frequently read about Special
Economic Zones (SEZs) in newspapers.
These SEZs were established with which of
the following objectives ?
(i) To attract foreign investment directly.
(ii) To protect domestic market from direct
competition from multinationals.
(iii) To provide more capital to agricultural
and allied activities.

(A) Only (i)
(B) Only (ii)
(C) Only (iii)
(D) All (i), (ii) and (iii)
(E) None of these

33. Which of the following groups of countries
has almost 50% share in global emission of
carbon every year ?
(A) US, China, India, South Africa
(B) India, China, Russia, Britain
(C) South Africa, Nepal, Myanmar
(D) US, Russia, China & India
(E) None of these

34. Which of the following correctly describes
the concept of ‘Nuclear Bank’ floated by
International Atomic Energy Agency ?
(i) It is a nuclear fuel bank to be shared by
all the nations jointly.
(ii) It is a facility to help nations in
enrichment of uranium.
(iii) It is an agency which will keep a close
vigil on the nuclear programme of all the
nations.

(A) Only (i)
(B) Only (ii)
(C) Both (i) and (iii) only
(D) Only (iii)
(E) Both (i) and (ii) only


35. Many times we read about Future Trading in
newspapers. What is ‘Future Trading’ ?
(i) It is nothing but a trade between any two
stock exchanges wherein it is decided to
purchase the stocks of each other on a
fixed price throughout the year.
(ii) It is an agreement between two parties to
buy or sell an underlying asset in the
future at a predetermined price.
(iii) It is an agreement between stockexchanges
 that they will not trade thestocks of each other
 under any circumstancesin future or for a given
 period of time.

(A) Only (i)
(B) Only (ii)
(C) Only (iii)
(D) All (i), (ii) and (iii)
(E) None of these

36. Inflation in India is measured on which of the
following indexes/ indicators ?
(A) Cost of Living Index (COLI)
(B) Consumer Price Index (CPI)
(C) Gross Domestic Product
(D) Wholesale Price Index (WPI)
(E) None of these

37. As per the reports published in the
newspapers a section of society staged a
demonstration at the venue of the G-8
Summit recently. What was/were the issues
towards which these demonstrators were
trying to draw the attention of G-8 leaders ?
(i) Food shortage which has taken 50
million people in its grip.
(ii) Inflation which has gone up substantially
across the Globe.
(iii)USA’s consistent presence in Iraq.

(A) Only (i)
(B) Only (ii)
(C) Only (iii)
(D) Both (i) and (ii) only
(E) None of these

38. Hillary Clinton formally suspended her
campaign to ensure election of who amongst
the following for the next President of USA ?
(A) George Bush
(B) Barack Obama
(C) John McCain
(D) Bill Clinton
(E) None of these

39. Hugo Chavez whose name was recently in
news is the—
(A) President of Congo
(B) Prime Minister of Uganda
(C) President of Venezuela
(D) Prime Minister of Brazil
(E) None of these

40. The Govt. of India has raised the amount of
the Loan Waiver to the farmers by 20%. Now
the amount is nearly—
(A) Rs. 60,000 crore
(B) Rs. 65,000 crore
(C) Rs. 72,000 crore
(D) Rs. 76,000 crore
(E) Rs. 80,000 crore

41. Delimitation Commission has made a recommendation
that next Census should be Panchayat-
wise. When is the next Census due?
(A) 2010
(B) 2011
(C) 2012
(D) 2013
(E) 2015

42. The World Health Organisation has urged that
advertisements of which of the following
should be banned to protect youth from bad
effects of the same ?
(A) Tobacco
(B) Alcoholic drinks
(C) Junk Food
(D) Soft drinks with chemical preservatives
(E) None of these

43. Which of the following countries has
allocated a huge amount of US $ 10 billion to
provide relief to its earthquake victims ?
(A) Japan
(B) South Korea
(C) China
(D) South Africa
(E) None of these

44. India and Nepal have many agreements on
sharing of the water of various rivers. Which
of the following rivers is not covered under
these agreements ?
(A) Kosi
(B) Gandak
(C) Ganga
(D) Mahakali
(E) All these rivers are covered

45. Which of the following names is not closely
associated with space programme of India or
any other country ?
(A) CARTOSAT
(B) NLS - 5
(C) RUBIN - 8
(D) GSLV
(E) SCOPE

46. Vijay Hazare Trophy is associated with the
game of—
(A) Hockey
(B) Cricket
(C) Badminton
(D) Football
(E) Golf

47. Which of the following was the theme of the
Olympic Torch ?
(A) Journey of Harmony
(B) Green World Clean World
(C) Journey of Peace
(D) Journey for Hunger-free World
(E) None of these

48. Which of the following schemes is not a
social development Scheme ?
(A) Indira Awas Yojana
(B) Mid Day Meal
(C) Bharat Nirman Yojana
(D) Sarva Shiksha Abhiyan
(E) All are social schemes

49. Which of the following is not a member of
the ASEAN ?
(A) Malaysia
(B) Indonesia
(C) Vietnam
(D) Britain
(E) Singapore

50. Which of the following Awards are given for
excellence in the field of Sports ?
(A) Kalinga Prize
(B) Shanti Swarup Bhatnagar Award
(C) Arjun Award
(D) Pulitzer Prize
(E) None of these

Answers  :-

1. (E) 2. (B) 3. (A) 4. (D) 5. (C)6. (C) 7. (D) 8. (C) 9. (A) 10. (E)
11. (D) 12. (D) 13. (C) 14. (D) 15. (D)16. (E) 17. (C) 18. (C) 19. (A)
20. (D)21. (D) 22. (E) 23. (B) 24. (B) 25. (C)26. (E) 27. (E) 28. (D)
29. (E) 30. (A) 31. (C)32. (A) 33. (D) 34. (B) 35. (B) 36. (D)37. (B)
38. (B) 39. (C) 40. (A) 41. (B)42. (A) 43. (C) 44. (C) 45. (E) 46. (B)
47. (A) 48. (C) 49. (D) 50. (C)