Banking Awareness eBook

BANKING & GENERAL AWARENESS A complete Guide to prepare Banking Awarenes

IBPS CWE 2012

Creator of this eBook

Ashok Lothia

www.IBPSExamination.blogspot.com

www.BharatNewsPortal.blogpsot.com www.ThOnlineGK.wordpress.com www.UPSCExamsGuide.blogspot.com www.AllCurrentAffairs.blogspot.com www.CAExamsGuide.blogspot.com www.AllExamsPaper.tk www.AlleBooks4u.tk

BANKING & GENERAL AWARENESS A complete Guide to prepare Banking Awareness

by Ashok Lothia

Contact us [email protected]

Contents Indian Banking Industry: Emerging Trends 1 Financial Literacy in India

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Economic Survey to have special chapter on financing of climate change

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Bankrolling the banks

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BANK EXAMS GENERAL AWARENESS PRACTICE QUESTIONS

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RBI releases Mid Quarter Monetary Policy Review 33 BANK EXAMS GENERAL AWARENESS MCQs 40 Crisis management group for financial markets on cards

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IBPS CLERKS EXAM GENERAL AWARENESS MODEL PAPER

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IBPS CWE GENERAL AWARENESS MODEL PAPER 67 Equip ATMs to accept cash directly, suggests panel 78 IRDA launched Two Online Initiatives to Safeguard the Interest of Insurance-seekers GENERAL KNOWLEDGE PRACTICE MCQs 83

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Market Capitalization of all 24 Listed Public Sector Banks below that of 15 Listed Private Banks

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Corp Bank scheme for Kerala Govt employees 96 BANKING AWARENESS MCQs 97 IBPS CWE GENERAL AWARENESS MODEL PAPER 105 NABARD signed MoU with All Cooperative Banks in Punjab to Launch Core Banking Solution

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Indian Bank launched e-banking Lounge & Inter-bank Mobile Payment Services

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K. S. Sreenivasan appointed non-official director on board of Oriental Bank of Commerce

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Fresh Capital to be infused in SBI to help it achieve Compliance with Capital Adequacy Ratio Norms

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Ratings Firm Moody's downgraded Indian Banking System's Rating outlook from Stable to Negative

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IBPS CWE GENERAL AWARENESS MODEL SOLVED PAPER

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IBPS CWE GENERAL AWARENESS MODEL SOLVED PAPER

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IBPS CLERKS GENREAL AWARENESS MODEL PAPER

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IBPS BANKING AWARENESS PRACTICE MODEL PAPER

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IBPS BANKING AWARENESS PRACTICE QUESTIONS

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SBI Associate Banks Probationary Officers Exam., 2011

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GENERAL AWARENESS MODEL QUESTIONS 222 Women use their debit cards less frequently, reveals RBI survey

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Customer service slips in public sector banks 233 Regional rural banks see healthy growth in saving bank deposits

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SBI, ICICI Bank lead peers in global branch network 238 GENERAL AWARENESS MCQs FOR BANK EXAMS 240 IBPS GENERAL AWARENESS MCQs 252 IBPS GENERAL AWARENESS PRACTICE MODEL QUESTIONS

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Moody’s cuts outlook on Indian banking system to negative

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Taxation system in India

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Overview of Indian Financial System 288 Financial System in India

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STOCK EXCHANGE, COMMODITY EXCHANGE RELATED TERMS

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IBPS CLERKS EXAM GENERAL STUDIES PRACTICE QUESTIONS

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Human Development Report 2011 329 GENERAL AWARENESS MCQs FOR BANK EXAMS 345 IBPS GENERAL AWARENESS SOLVED QUESTIONS 365 IBPS GENERAL AWARENESS PRACTICE QUESTIONS

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IBPS GENERAL AWARENESS MCQs 393 BANKING & FINANCIAL TERMS 407 BANKING TERMINOLOGY FINANCIAL & BANKING AWARENESS MCQs 445

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Indian Banking Industry : Emerging Trends

Fierce competition, innovative strategies and competitive spirit have satiated banks with palpating activities. Banks are adopting different strategies in an environment of increased competitive pressure. Active strategies with focus on new fields of business and defensive strategy concentrating on cost cutting are embraced together. Flawless service delivery is the target with diffused liabilities and multiple choices available to customers. Technology has completely changed the nature and pace of delivery of banking services world over. The speed has considerably improved alongwith the quality of the services. Various delivery channels are available with banks for customers. Broadly, the levels of banking services offered through internet can be categorized in to three types namely—Basic Level Service, Simple Transactional Websites and Fully Transactional Websites. Indian banking was provided an opportunity by the liberalization in 1990s to extend its working para-meters beyond geographical borders. The banking reform has indeed helped to restore semblance of efficiency and stability. Our banking industry enjoys greater autonomy, operational flexibility and liberalized norms allowing it to be more com-petitive. Technology Driven Indian Banking System The growing universalisation and internationalisation of banking operations have altered the face of banks from one of mere inter-mediator to one of provider of quick, efficient and consumer centric ser-vices. There has been massive use of technology across many areas of banking business in India, both from the

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asset and the liability side of a bank’s balance sheet. Banks pass through phases namely the inception phase, where the technology behind the application is in its infancy and a substantial amount of investment is required so as to make the application widely available commercially; the growth phase, where the application is increasingly available to the custo-mers and the technology behind the application is widely available; and the maturity phase, wherein the application is in widespread use and institutions not offering such applica-tions are likely to be at a competitive disadvantage. The introduction of MICR based cheque processing—a first for the region, during the years 1986-88 was one of the earliest steps in Indian banking on the march of technology. 1. Technological Changes in Indian Banking System —The introduction of Core Banking Core Banking Systems Systems (CBS) which was at its nascent stages has become full blown and all banks are at varying stages of implementation of Core Banking Systems in their branches. There are 5 ingredients that form part of the Core Banking system viz. General Ledger Customer, Information System, Deposit System, Loan System and Management Information System. INFINET—INFINET (Indian Financial Network), is used by a large number of banks for funds and non-funds-based message transfers, and is made available by the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad. INFINET is perhaps among the few networks in the world which uses the latest in technology and security called Public Key Infrastructure—PKI, which is not only state-of-the-art and robust but also well within the legal requirements of the Information

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Technology Act, 2000. RBI introduced National Electronic Funds Transfer System— an electronic funds transfer system to facilitate an efficient, secure, econo-mical, reliable and expeditious system of funds transfer and clearing in the banking sector throughout India, and to relieve the stress on the existing paper-based funds transfer and clearing system called National Electronic Funds Transfer System (NEFT System). The parties to a funds transfer under this NEFT System are the sending bank, the sending Service Centre, the NEFT Clearing Centre, the receiving Service Centre and the beneficiary branch. The EFT scheme enables transfer of funds within and across cities and between branches of a bank and across banks. —The objective of National Electronic Clearing Services National Electronic Clearing Services (NECS) is to facilitate centralised processing for repetitive and bulk payment instructions. Sponsor banks shall submit NECS data at a single centre viz. at Mumbai. While NECS (Credit) shall facilitate multiple credits to beneficiary accounts at destination branch against a single debit of the account of a User with the sponsor bank, the NECS (Debit) shall facilitate multiple debits to destination account holders against single credit to user account. —The Centralized Centralized Funds Management System Funds Management System (CFMS), is a system to enable operations on current accounts maintained at various offices of the Bank, through standard message formats in a secure manner. It is set up, operated and maintained by the Reserve Bank of India. —Mobile payments is defined as Mobile Banking Services infor-mation exchange between a bank and its customers for

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financial transactions through the use of mobile phones. Mobile payment involves debit/credit to a customer’s account’s on the basis of funds transfer instruc-tion received over the mobile phones. Only Indian Rupee-based dome-stic services shall be provided. Use of mobile banking services for cross border inward and outward transfers is strictly prohibited. Only banks which have implemented core bank-ing solutions would be permitted to provide mobile banking services. Banks shall file Suspicious Trans-action Report (STR) to Financial Intelligence Unit–India (FIU-IND) for mobile banking transactions as in the case of normal banking transactions. To ensure inter-operability between banks, and between their mobile banking service providers, banks shall adopt the message formats like ISO 8583, with suitable modification to address specific needs. Hence, banks offering mobile banking should notify the customers the timeframe and the circumstances in which any stop-payment instructions could be accepted. 2. Current Position of Technological Banking Services Drift Towards Innovative Banking 1. Presence of Women on Boards Banking in the West has tradi-tionally been a male bastion and continues to be so. Study titled “Women on Corporate Boards in India 2010” ranked the companies listed in the Bombay Stock Exchange (BSE-100) in terms of the gender diversity of their boards, with those with the highest percentage of women on their boards appearing at the top. The BSE-100 comprises 26 industry classifications with the banking industry making up the largest group of companies.

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Indian banks, with better gender equality on board than their western counterparts, scraped though the economic slowdown unscathed. Kalpana Morparia heads the Indian arm of global financial leviathan J. P. Morgan Chase & Co; Meera Sanyal is the country executive for Royal Bank of Scotland and; Manisha Girotra is the managing director of Union Bank of Switzer-land’s India operations. K. J. Udeshi is the Chairman of Governing Council of BCSBI. 2. Mobile Branches Domestic scheduled commercial banks (other than RRBs) were granted general permission by RBI, to opera-tionalise Mobile branches in Tier 3 to Tier 6 centres (with population upto 49,999 as per Census 2001) and in rural, semi urban and urban centres in the North Eastern States and Sikkim, subject to reporting. The mobile branch should be stationed in each village/location for a reasonable time on specified days and specified hours, so that its services could be utilized properly by customers. The business transacted at the mobile branch shall be recorded in the books of the base branch/data centre. The bank may give wide publicity about the mobile branch in the village, including details of ‘specified days and working hours’ at various locations so as to avoid any confusion to local customers; and any change in this regard should also be publicized. 3. Social Responsibility, Sustain-able Development and Non-Financial Reporting Government infused into bank-ing sector the ‘socialist’ constituent through nationalization of major banks.

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CSR entails the integration of social and environmental concerns by companies in their business opera-tions as also in interactions with their stakeholders. SD essentially refers to the process of maintenance of the quality of environmental and social systems in the pursuit of economic development. NFR is basically a system of reporting by organizations on their activities in this context, especially as regards the triple bottom line, that is, the environmental, social and economic accounting. RBI circular (dated December 20, 2007) on Role of Banks in Cor-porate Social Responsibility, Sustain-able Development and Non-Financial Reporting is appreciable. Stressing the need for Corporate Social Res-ponsibility (CSR), RBI pointed out that these initiatives by the banks are vital for sustainable development. Banks have been directed to start; non-financial reporting will help to audit their initiatives towards the corporate social responsibility (CSR). Such a reporting will cover the work done by the banks towards the social, economic and environmental better-ment of society. 4. Universal Banking Universal Banking refers to those services offered by banks beyond traditional banking service such as saving accounts and loans and includes Pension Funds Manage-ment, undertaking equipment leas-ing, hire purchase business and factoring services, Primary Dealer-ship (PD) business, insurance busi-ness and mutual fund business. The issue of universal banking came to limelight in 2000, when ICICI gave a presentation to RBI to discuss the time frame and possible options for transforming itself into an univer-sal bank.

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Later on RBI asked financial institutions which are interested to convert them into a universal bank, to submit their plans for transition to a universal bank for consideration and further discussions. FIs need to for-mulate a road map for the transition path and strategy for smooth con-version into an universal bank over a specified time frame. The plan should specifically provide for full com-pliance with prudential norms as applicable to banks over the pro-posed period. Though the DFIs would continue to have a special role in the Indian financial System, until the debt market demonstrates substantial improvements in terms of liquidity and depth, any DFI, which wishes to do so, should have the option to transform into bank (which it can exercise), provided the prudential norms as applicable to banks are fully satisfied. To this end, a DFI would need to prepare a transition path in order to fully comply with the regula-tory requirement of a bank. The DFI concerned may consult RBI for such transition arrangements. Reserve Bank will consider such requests on a case by case basis. Thus, Indian financial structure is slowly evolving towards a conti-nuum of institutions rather than discrete specialization. Conclusion The applicability of various existing laws and banking practices to e-banking is not tested and is still evolving, both in India and abroad. With rapid changes in technology and innovation in the field of e-banking, there is a need for constant review of different laws relating to banking and commerce. A re-orientation of strategy is required in order to accommodate the changes and challenges of the present globa-lised scenario. Technological developments may become threat but still enable banks to access the global market through the electronic networks.

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IT usage by banks would continue to exist in substantial scales. Indian Banking is trying to embrace latest technology upgrading its services. Clientele are reveling sophisticated services specific needs, preferences and conveniences by the banks.

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Financial Literacy in India

The Essence of Money We all acknowledge the fact that money is essential for sheer existence and survival yet tend to escape from learning how to manage money. Managing money means the ability to judiciously save and multiply the money earned, through an informed understanding of the financial pro-ducts and services available. It is also the question of avoiding risks and being protected from falling prey to unscrupulous elements. In my opinion the single most critical factor in effective money management is to stay away from greed. Greed for making quick money often restricts the power to think and take appro-priate decisions. Greed and lust for easy money overpowers application of mind and the capacity to think sanely. We ignore the fact that money invested legally and ethically can hardly ever give returns which are disproportionate with respect to pre-vailing market conditions. Yet regu-larly we hear of people losing their hard earned money by succumbing to fraudulent schemes which promise attractive returns or trusting someone who tempts them with windfall gains. We must always remember that money does not grow on trees and investments/savings can fetch only normal returns which are in con-formity with market norms. Our indulgence in fancy schemes and faith in promoters whose credentials are not verified arises due to lack of adequate knowledge and the ability to think rationally. Money lost is difficult to retrieve; though checks and balances are there it is only the well informed who can pursue his case by approaching the respective authorities for redressal. We need to

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respect money for its value and its significance for sheer survival. Financial literacy is therefore crucial for the well being of an individual from any section of society. What is Financial Literacy ? It is not logical to assume that all educated individuals are financially literate and the less educated are weak. In fact the converse could be true. What then is financial literacy? Simply expressed it is the ability to manage one’s personal finance judiciously by making best/optimum use of one’s resources. There are different financial products and ser-vices available which cater to differ-ent needs and requirements. Under-standing these products and services and choosing according to the wants is what constitutes the right approach. These wants differ from individual to individual and even during the life span of a person the wants keep changing. The requirements are linked to the risk taking capacity as the element of safety is crucial in an individual’s life. Be it savings through bank/post office schemes, investing in stock markets or mutual funds, buying life cover and general insurance, raising loans or use of credit cards it is essen-tial to know the products thoroughly to make a well thought out decision. A prudent man generally relies on his personal judgement rather than dubious relationship managers/un-solicited help as trust and integrity in financial matters are an absolute necessity. It is better to stay away from complex products and services if the knowledge levels are low as safeguarding of money is more impor-tant than taking unwanted risks. With the spread of technology and opening of the economy it has become even more important to select the appro-priate product after due diligence. Though technology has made ser-vices swifter and efficient it has also introduced many

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hazards. A thorough understanding of the safe-guards in the technology process is all the more essential to avoid being a victim of fraudulent transactions. To appreciate the significance and relevance of financial literacy for sound money management it may be worthwhile to capture a few illustra-tions. (1) Taking the simple example of payment of interest on savings bank accounts not many still know that interest is now paid on the daily balance in the account. Rather than withdrawing money which may not be immediately required for a week at least it would be profitable if the same amount remains with the bank as it would continue to earn interest for the account holder. Better still the surplus funds in a savings account could be transferred to a fixed deposit account which would give higher interest. (2) Those seeking loans from banks often do not read the terms and conditions of the bank and blindly sign the documents thereby agreeing to the terms of the document. At times these papers are signed in blank without even bothering to understand the significance of the loan contract. Loan means having to fulfil many obligations by the bor-rower till it is cleared and pleading ignorance later does not help. In case of default the assets can be seized by the lender and the borrower has no scope to protect the asset without clearing the dues. (3) Most loan documents require one or more guarantors to sign along with the borrower. This strengthens the lender in case the borrower defaults. How many really know that the guarantor is liable to pay if the borrower does not repay the dues. There are many instances where the guarantors regretted signing the documents and protested when they were asked to clear the loan. Such

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protests citing ignorance or lack of knowledge are of no use later. (4) Most credit card holders do not realize that interest on roll over dues are charged abnormally high interest rates and interest gets com-pounded every month if the balance remains unpaid. Moreover service tax is also levied on the interest amount. Higher the interest amount higher the service tax becomes payable. (5) Non-banking finance com-panies and corporates invite deposits from the public with offer of higher interest rates than most banks. It is quite logical for certain persons to be tempted to invest their funds in these schemes for the additional interest amount. What is of prime importance is to study thoroughly the back-ground and strength of the company before investing as the repayment of the deposit on maturity is not guaran-teed. There are so many examples where the companies have not retur-ned the money on maturity for various reasons. Some have even disappeared from the market after mobilizing substantial money. Ima-gine the poor person of meager means having to suffer the loss of money as he deposited in good faith but without full knowledge. (6) RBI regularly releases reports of forged or counterfeit currency notes in circulation and the need to be cautious. How many of us really bother to understand the security features of currency notes to identify forged notes and take preventive action. The desired know how can stop the fraudulent use of illegal money and prevent undesirable con-sequences. RBI’s campaign ‘Paisa Bolta Hai’ is an excellent audiovisual presentation on the measures to check the authenticity of a currency note. (7) For the sake of credit and debit card holders there are regular warnings to avoid sharing their PIN and card numbers with any third person. Despite the constant educa-tion it is often seen that card

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users are asking total strangers at ATM centres and elsewhere how to operate their cards. The fact that they are inviting trouble is overlooked for the sake of momentary help. Little do we realize that knowledge can prevent many untoward happenings ? (8) Insurance policies are pur-chased as tax savings schemes rather than the main objective of insuring life. The type of policy is also not properly understood as to the type of risk cover it is providing. Unfor-tunately the insurance agent is at times not fully educated himself or avoids suggesting the right policy for making higher commission payouts. (9) Insurance policies carry a 15 days or in some cases one month free look period during which time the buyer can reconsider his decision to purchase the life cover. This enables the buyer to study carefully the features of the policy and compare it with his actual need. Very few really know about this facility which again demonstrates the need to be aware and vigilant. (10) Retail investors enter the stock market hoping to make quick gains. Very few make their own independent studies but merely rely on hearsay. The results are obvious as a few lucky ones may make some money without adequate knowledge but the large majority suffer loses. There is also the ‘ASBA’ facility for subscribing to new issues without blocking one’s funds but very few take advantage of it. SEBI has tried to popularize this facility in many ways through advertisement campaigns and it is for the investor to gain from it. Once again the informed person only benefits. (11) Investing in mutual funds has also become fashionable because of the coverage the sector gets. Yet it is a matter of debate as to how many can differentiate between equity or debt funds or even hybrid varieties. The investment is not linked to the risk taking

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capacity of the investor and his financial priorities. Often the investor is not aware whether his holdings in the fund belong to the growth or dividend option. The above examples relate to very basic transactions but convey the significance of possessing sound knowledge for prudent decision making. Absence of financial literacy can truly damage substantially the interests of the persons concerned. It is difficult to escape for any age group as money is needed by all. The Spread of Financial Literacy It is better to start early with the process of financial education as discipline in money matters is an important characteristic of an indivi-dual. Children should be taught the benefits of saving and introducing the age old concepts of having a piggy bank can be a welcome start. Schools need to inculcate these habits in students and gradually introduce them to the basics of personal finance. A beginning has already been made by introducing subjects on basic finance in the school curriculum at certain centres. Reserve Bank of India is promoting this early education of children by adopting a friendly and entertaining way through the medium of comics. They are also encouraging the young to participate in contests, the winners of which are awarded scholarships. It is the vulnerable sections of society like women, senior citizens, the rural and urban poor who need to be adequately educated and equipped. The Financial Literacy programme of RBI is tackling all these issues through different means. Their website is a store house of knowledge provided there is an urge to learn. The individual has to be proactive and be eager to grasp the necessary knowledge to safeguard himself and thereby his money. RBI is making extra efforts to be as trans-parent as possible in the larger interest of the

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common citizen by reaching out to them through their out reach programmes. These pro-grammes which were held during the 75th year of RBI in 2010 in far corners of the country were primarily to educate the masses about the activi-ties of RBI and how to utilize the available banking services for their betterment. Most banks also have their finan-cial literacy departments and credit counseling centres where personal problems are addressed. How much of these centres are successes is deba-table because a very small percentage of people know about these facilities and even if they know there is an inherent hesitation to seek their help. The websites of banks and financial institutions also have all the details about their products and services. In case of doubts it is advisable to refer to these portals to avoid making any wrong or improper decision. The concern is that incomplete or half baked knowledge is not used to take decisions which are repented later. BCSBI or Banking Codes and Standards Board of India has been set up by RBI as an apex body to improve the working of banks and introduce systemic changes wherever necessary for better treatment of customers. While their primary focus remains on customer service they are also par-ticipating in disseminating informa-tion on different aspects of banking. For an effective literacy campaign it is important that information asym-metry between service provider and customer is reduced. In this connec-tion banks have unilaterally under-taken to comply with a Code of Commitment to Customers detailing the nature of services provided by banks, the normal time taken for rendering these services and the various obligations of banks who have signed these codes. Only when there is awareness can the customers use the code to their benefit. It is for the individual to take advantage of the provisions provided there

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is will-ingness to learn. BCSBI also publishes a quarterly newsletter which is both informative and educative. The importance of promoting financial literacy and the enormity of the task is being gradually under-stood. This has made many organi-zations enter this field to make their presence felt. Innovative ways have been adopted to keep the literacy efforts simple and user friendly for maximum benefit. Websites, print media and audio visual communi-cations relating to financial education are easily accessible for the average individual to improve his under-standing of the financial market, its products and services. National dailies, banks, financial institutions, private organisations are individually contributing through easy to understand pamphlets, comic strips, newsletters etc. to reach the consumer covering fundamental issues. Seminars, conferences, inter-active sessions are often arranged to address issues of common concern and dissemination of information. Spreading of information and awareness is critical for an emerging economy like India. If the vast popu-lation of deprived people is brought into the mainstream it would be of immense benefit both as a social necessity as well as an economic push. The call for financial inclusion in the country has therefore become an immediate priority and is engag-ing the attention of policy makers for effective execution. It would reap dividends only when the targeted people are financial literate. Only then would they be able to make the most appropriate choice of the pro-ducts and services which would improve their position. The vast majority of our people are extremely vulnerable as they depend upon informal sources of finance for meet-ing their needs. Only by empowering them with the adequate knowledge can we hope to improve their lot and that of

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the economy as a whole. The penetration of banking and insurance services is extremely poor in India and if the coverage is extended by simultaneous spreading of financial literacy it would be a huge progress for overall growth. The formal channels of money transmission has to be introduced for all round benefit as for far too long the poor, gullible people have suffered at the hands of the money lender and his brethren. The international body Orga-nisation for Economic Development OECD is putting its weight behind RBI in promoting financial literacy in India. There is no running away from this hard fact for which the financial service providers are also being trained to encourage the dissemi-nation of information in as compre-hensive a way as possible. However it is the individual as the consumer who needs to grasp and absorb the knowledge for his betterment and safety. Money creation through the legi-timate way is hard and painstaking but can be lost in no time if there is improper financial planning. Finan-cial awareness is a critical component in the process of protecting and enlarging the corpus of funds that an individual may have.

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Economic Survey to have special chapter on financing of climate change

The Finance Ministry will include a special chapter on financing of climate change in the Economic Survey, the Chief Economic Advisor, Mr Kaushik Basu, has said. “This year we have decided to devote a special chapter on the topic of financing of climate change in the Economic Survey,” Mr Basu said while addressing a UNDP event. Speaking at the event, the Economic Affairs Secretary, Mr R. Gopalan, said that the climate change issue is posing a challenge for the world. “The challenges are both environmental and developmental. Addressing climate change is a challenge for all humanity and it is in our interest that the world community address the issue effectively,” Mr Gopalan said. He said there is a need to change the way we use natural resources and device new technology to meet the challenges. As per the 2010-11 Economic Survey, India’s total carbon-di-oxide emissions were about 4 per cent of the global emissions. The survey also showed that it cost India 2.84 per cent of its GDP to adapt to climate change. Studies show that even with 8-9 per cent GDP growth every year for the next decade, India’s per-capita emissions will be well below developed countries average.

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Bankrolling the banks

The Reserve Bank of India's (RBI) recently released draft guidelines on the proposed implementation of international norms of capital adequacy (Basel–III) would require Indian banks to mobilise huge sums of capital during the next five years. Under the existing Basel-II norms, the Indian banking industry has to maintain total capital — drawn from a combination of equity and preference shares plus long-term debt, both accorded lower priority to monies belonging to depositors — amounting to 9 per cent of their assets calibrated suitably for riskiness (‘risk-weighted assets' or RWA). While the overall ratio has been retained under the proposed new norms, a minor reshuffle has been attempted between equity/preference stock holders and long-term bond holders in the event of a bank failure, with the former having to contribute an additional one percentage point capital to their existing 6 per cent of the total 9 per cent. Further, equity/preference share holders have to come up with an additional 2.5 percentage points in capital as a buffer for any unforeseen contingencies. That takes the aggregate capital adequacy ratio (CAR) to 11.5 per cent, of which common equity alone would make up 8 per cent. The emphasis is clearly not just on meeting a broadly defined overall CAR of 8 per cent (as it was two decades ago), but also on improving the transparency and quality of the capital base. The implementation period for all these is from January 1, 2013 to March 31, 2017. The rationale behind fashioning a tighter capital (especially core equity) regulatory regime for banks stems largely from the banking crises that followed the global recession of 2008 and also the

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ongoing European sovereign debt troubles. These have created renewed concerns over the banking sector's ability to withstand financial shocks and minimise risks of spill-over to the real economy. But implementation will be a huge challenge, with the estimates of fresh capital needed to be raised by all Indian banks ranging anywhere from Rs 1.4 lakh to Rs 3 lakh crore. Given the dominance of public sector banks, it would necessitate large government infusion of funds. Where this money is going to come from, if the Centre would not even be prepared to dilute its stake below 51 per cent, is a huge question mark. This issue came to the fore not too long back, when Moody's downgraded the State Bank of India's credit rating, after its Tier-1 CAR fell below the Government's own 8 per cent prescription. Related to this is the more immediate problem of rising non-performing assets (NPA) on account of loans to a host of troubled sectors from telecom and airlines to power. As these mount – under pressure from high interest rates and the general economic slowdown – banks would have to find resources to maintain even existing capital adequacy levels. The RBI, under the circumstances, cannot be totally oblivious to concerns over the proposed implementation schedule for Basel-III, which is seen to be rather frontloaded.

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BANK EXAMS GENERAL AWARENESS PRACTICE QUESTIONS

1.Which country's lower house of Parliament is called Wolesi Jirga? 1) Russia 2) Afghanistan 3) Japan 4) Pakistan 5) Bangladesh 2.Which of the following statements is/are correct? 1)The UNESCO-Madanjeet Si-ngh Prize for the Promotion of Tolerance and Non-Violence is a prize awarded every two years by UNESCO. 2)This award has been instituted in memory of Mahatma Gandhi. 3)This prize of US $ 1, 00,000 was made possible by the donation of the Indian diplo-mat Madanjeet Singh who is also the Goodwill Ambas-sador of UNESCO. 4) The 2011 awardees are Afgh-anistan's women's rights cam-paigner Anarkali Honaryar and Palestinian peace activist Khaled Abu Awwad. 5) All the above statements are correct. 3.Who among the following was chosen for the UNESCO-Madanjeet Singh Prize for the Promotion of Tolerance and Non-Violence in 2002, but was allowed to accept the prize only in November 2011? 1) Taslima Nasreen (Bangladesh)

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2) Aung San Suu Kyi (Myanmar) 3) Francois Houtart (Belgium) 4) Abdul Sattar Edhi (Pakistan) 5) None of these 4.Which of the following days is observed as the International Day for Tolerance? 1) October 2 2) November 16 3) October 24 4) October 16 5) November 14 5.Scientists have found the best evidence yet for water just beneath the surface of Europa. Europa is the icy moon of which of the following planets? 1) Mars 2) Saturn 3) Jupiter 4) Venus 5) Uranus 6.Which of the following countries is not a member of the Nuclear Suppliers Group (NSG)? 1) USA 2) Australia 3) Canada 4) India 5) France

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7.Metro Cash& Carry is planning to invest Rs. 2400 crore in India on new stores in the next four years. To which country does this retailing giant belong? 1) Germany 2) Indonesia 3) Singapore 4) Malaysia 5) USA 8.The renovated Advanced Landing Ground (ALG) of Vijay-nagar, a completely air-mainta-ined and strategically located human settlement, was inaugur-ated recently. In which state is this Vijaynagar airfield located? 1) Assam 2) Nagaland 3) Karnataka 4) Arunachal Pradesh 5) None 9.A delegation from the Unites States Nuclear Regulatory Com-mission (USNRC) visited the nuclear facilities at Kalpakkam. In which state is Kalpakkam situated? 1) Karnataka 2) Kerala 3) Tamil Nadu 4) Maharashtra 5) None of these

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10.The United Nations General Ass-embly has re-elected who among the following as a member of the International Law Commission (ILC) for a five- year term? 1) Mota Singh 2) Narinder Singh 3) Swaraj Paul 4) P.Venkat Ram Reddy 5) None 11.What is the disinvestment target for the current financial year i.e. 2011-12? 1) Rs.25, 000 crore 2) Rs.30, 000 crore 3) Rs.40, 000crore 4) Rs.50, 000 crore 5) None 12.Gloria Macapagal Arroyo was arrested for electoral fraud recently. She was the President of which of the following countries from 2001 to 2010? 1) Singapore 2) Philippines 3) Venezuela 4) Honduras 5) Vietnam 13.Sarath Fonseka was sentenced to spend three more years in prison in November 2011. He is the former army chief of which of the following countries?

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1) Nepal 2) Mauritius 3) Sri Lanka 4) Pakistan 5) Myanmar 14.Which of the following badmi-nton tournaments was won by Saina Nehwal in the year 2011? 1) Singapore Super Series 2) Indonesia Super Series 3) Hong Kong Super Series 4) All England Badminton Championship 5) None 15.Guru Saidutt excelled in which of the following sports? 1) Table Tennis 2) Badminton 3) Lawn Tennis 4) Volleyball 5) Basketball 16.Which of the following trains covers the largest rail route in the country 4,286 km? 1) Vivek Express (Dibrugarh to Kanya Kumari) 2) Himsagar Express (Jammu Tawi to Kanya Kumari) 3) Dibrugarh-Chennai Express 4) Howrah-Amritsar Express 5) None of these

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17.Sukh Ram was sentenced to five years' imprisonment by a special CBI Court in November 2011. He was a Minister of State for Communications in which of the following governments? 1) A.B.Vajpayee 2) P.V.Narasimha Rao 3) Rajiv Gandhi 4) Indira Gandhi 5) None 18.Eurasian Union is an economic body designed to reintegrate the former Soviet economies. Which of the following countries is not a member of this new group? 1) Russia 2) Kazakhstan 3) Belarus 4) Georgia 5) All the above mentioned countries are members 19.Basil D' Oliveira, the South Africa-born English player passed away recently. He was a renowned player in which of the following sports? 1) Football 2) Cricket 3) Rugby 4) Basketball 5) Boxing 20.Which Indian leader was honored by Singapore as a "Friend to our Shores" and a "Visionary" in November 2011?

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1) Jawaharlal Nehru 2) Mahatma Gandhi 3) Sardar Vallabhbai Patel 4) Indira Gandhi 5) A.B.Vajpayee 21.Which of the following groups/ organizations has funded a sports centre in Ramallah, Palestine? 1) BRICS 2) BASIC 3) IBSA 4) SAARC 5) APEC 22.Which was the first non-Arab state to recognize the Palestine Liberation Organization (PLO) in 1975? 1) India 2) Israel 3) China 4) USA 5) France 23.The Bar Council of India (BCI) was formed in 1961 as a regulatory body for the legal profession governed by the Indian Advocates Act. It is celebrating its golden jubilee. Who is its present Chairman? 1) Satish Abarao Deshmukh 2) Ashok K. Parija 3) S.Prabakaran

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4) T.S.Ajith 5) None of theses 24.Tipaimukh Dam is a proposed dam on the river Barak in which state of India? (This project has led to a controversy between India and Bangladesh) 1) Assam 2) Nagaland 3) Manipur 4) Tripura 5) Arunachal Pradesh 25.Which team was crowned overall champions at the 65th Senior National Aquatic Championships in Ranchi in November 2011? 1) Karnataka 2) Maharashtra 3) Railways 4) Kerala 5) Gujarat 26.Which woman swimmer won 5 gold medals in the 65th Senior National Aquatic Championships held in Ranchi in November 2011? 1) Pooja Alva 2) Richa Mishra 3) Bhoomi Motwani 4) Talasha Prabhu 5) Surabhi Tipre 27.Who won the Men's singles title at the Hong Kong Open

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badminton championships in November 2011? 1) Lin Dan 2) Chen Jin 3)Cai Yun 4)Fu Haifeng 5)None 28.Which of the following teams won the Presidents Cup golf tournament in November 2011? 1) Internationals 2) USA 3) Europe 4) Australia 5) None 29.Which of the following teams has won both the men's and wo-men's Kabaddi world cup that was held in Ludhiana in Nove-mber 2011? 1) Canada 2) Pakistan 3) USA 4) India 5) Australia 30.Who has been selected for the Indira Gandhi Prize for Peace, Disarmament and Development 2011, an award instituted by the Indira Gandhi Memorial Trust? 1) Sheikh Hasina 2) Ela Bhatt

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3) Angela Merkel 4) Hillary Clinton 5) Medha Patkar 31.Which city will host the 2018 Commonwealth Games? 1) Hambantota (Sri Lanka) 2) Glasgow (Scotland) 3) Gold Coast (Australia) 4) Wellington (New Zealand) 5) London (United Kingdom) 32.Mohammad Zillur Rahman is the President of which of the following countries? 1) Pakistan 2) Bangladesh 3) Iran 4) Afghanistan 5) Syria 33.Which of the following institut-ions decides the Bank rate? 1) SEBI 2) SBI 3) IRDA 4) NABARD 5) RBI 34.Which scientist was conferred with the Ernesto Illy Trieste Science Prize for 2011 in November 2011? (This prize was instituted by the Academy of Sciences of the Developing World. It

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carries a cash compo-nent of 1,00,000 dollars. It seeks to honor distinguished scientists from developing countries.) 1) Tessy Thomas 2) V.K.Saraswat 3) C.N.R Rao 4) Venkatraman Ramakrishnan 5) None of these 35.National Income Accounting, Conduct of Annual Survey of In-dustries, Economic Census and its follow up surveys, compil-ation of index of industrial prod-uction, etc. are some of the activ-ities of which of the following institutions/organizations? 1) Reserve Bank of India 2) Planning Commission 3) Central Statistics Office 4)National Development Council 5)Unique Identification Authority of India 36.The distribution of Teesta river water is a bone of contention between India and which of the following countries? 1) Pakistan 2) Nepal 3)China 4)Bangladesh 5)Bhutan 37.Which of the following organiz-ations/ agencies was set up to boost overall rural development in India? 1) RBI

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2) SIDBI 3) NABARD 4) SEBI 5) None of these 38.BR Act controls banking activities in India. What does the letter 'R' denote? 1) Reformation 2) Regulation 3) Reporting 4) Ranking 5) None of these 39.Who is the ex-officio Chairman of the Rajya Sabha? 1) Meira Kumar 2) Mohammad Hamid Ansari 3) Karia Munda 4) K.Rahman Khan 5) Manmohan Singh ANSWERS: 1. (2) 2. (5) 3. (2) 4. (2) 5. (3) 6. (4) 7. (1) 8. (4) 9. (3) 10. (2) 11. (3) 12. (2) 13. (3) 14. (5) 15. (2) 16. (1) 17. (2) 18. (4) 19. (2) 20. (1) 21. (3) 22. (1) 23. (2) 24. (3) 25. (1) 26. (2) 27. (1) 28. (2) 29. (4) 30. (2) 31. (3) 32. (2) 33. (5) 34. (3) 35. (3) 36. (4) 37. (3) 38. (2) 39. (2)

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RBI releases Mid Quarter Monetary Policy Review

Monetary Measures On the basis of the current macroeconomic assessment, it has been decided to: • keep the cash reserve ratio (CRR) unchanged at 6 per cent; and • keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.5 per cent. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.5 per cent and the marginal standing facility (MSF) rate at 9.5 per cent. Introduction Since the Reserve Bank’s Second Quarter Review (SQR) of October 25, 2011, the global economic outlook has worsened significantly. The recent European Union (EU) summit agreement did not assuage negative market sentiments, thereby increasing the likelihood of persistent financial turbulence as well as a recession in Europe. Both factors pose threats to emerging market economies (EMEs), including India. Significantly, despite these developments, crude oil prices remain elevated. On the domestic front, growth is clearly decelerating. This reflects the combined impact of several factors: the uncertain global environment, the cumulative impact of past monetary policy tightening and domestic policy uncertainties. Both inflation and inflation expectations are currently above the comfort level of the Reserve Bank. However, reassuringly,

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inflationary pressures are expected to abate in the coming months despite high crude oil prices and rupee depreciation. The growth deceleration is contributing to a decline in inflation momentum, which is also being helped by softening food inflation. Global Economy The global economic situation continues to be fragile with no credible solution as yet to the immediate euro area sovereign debt problem. At the EU summit on December 8-9, the European leaders agreed on a new fiscal compact, involving stronger coordination of economic policies to strengthen fiscal discipline. While the agreement is necessary for medium and long-term sustainability of the euro area, its ability to resolve short-term funding pressures was questioned by markets. Q3 euro area growth, at 0.8 per cent, was anaemic and 2012 growth is now expected to be weaker than earlier projected. Reflecting these projections, the European Central Bank (ECB) cut its policy rate twice in the last two months, and also implemented some non-standard measures. By contrast, growth in the US in Q3 of 2011 was better than in Q2, although still substantially below trend. Growth in EMEs is also moderating on account of sluggish growth in advanced economies and the impact of monetary tightening to contain inflation. In view of the slowing down of their economies, Brazil, Indonesia, Israel and Thailand cut their policy rates, while China cut its reserve requirements. EME currencies have also come under varying degrees of downward pressure as a result of global risk aversion and financial stress emanating from the euro area. Domestic economy

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Growth GDP growth moderated to 6.9 per cent in Q2 of 2011-12 from 7.7 per cent in Q1 and 8.8 per cent in the corresponding quarter a year ago. The deceleration in economic activity in Q2 was mainly on account of a sharp moderation in industrial growth. On the expenditure side, investment showed a significant slowdown. Overall, during the first half (April-September) of 2011-12, GDP growth slowed down to 7.3 per cent from 8.6 per cent last year. Industrial performance has further deteriorated as reflected in the decline of the index of industrial production (IIP) by 5.1 per cent, y-o-y, in October 2011. This was mainly due to contraction in manufacturing and mining activities. The contraction was particularly sharp in capital goods with a y-o-y decline of 25.5 per cent, reinforcing the investment decline story emerging from the GDP numbers. Other indicators also suggest a similar tendency, though by no means as dramatic as the IIP. The HSBC purchasing managers' index (PMI) for manufacturing suggested further moderation in growth in November 2011. However, PMI-services index recovered in November from contractionary levels in the preceding two months. Corporate margins in Q2 of 2011-12 moderated significantly as compared with their levels in Q1. The decline in margins was largely on account of higher input and interest costs. Pricing power is evidently declining. On the food front, the progress of sowing under major rabi crops so far has been satisfactory, with area sown under foodgrains and pulses so far being broadly comparable with that of last year. Inflation

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On a y-o-y basis, headline WPI inflation moderated to 9.1 per cent in November from 9.7 per cent in October, driven largely by decline in primary food articles inflation. Fuel group inflation went up marginally. Notably, non-food manufactured products inflation remains elevated, actually increasing to 7.9 per cent in November from 7.6 per cent in October, reflecting rising input costs. The new combined (rural and urban) consumer price index (base: 2010=100) rose further to 114.2 in October from 113.1 in September. Inflation in terms of other consumer price indices was in the range of 9.4 to 9.7 per cent in October 2011. Reassuringly, headline momentum indicators, such as the seasonally adjusted month-on-month and 3-month moving average rolling quarterly inflation rate, show continuing signs of moderation. External sector Merchandise exports growth decelerated sharply to an average of 13.6 per cent y-o-y in October-November from an average of 40.6 per cent in the first half of 2011-12. However, as imports moderated less than exports, the trade deficit widened, putting pressure on the current account. This, combined with rebalancing of global portfolios by foreign institutional investors and the tendency of exporters to defer repatriating their export earnings, has led to significant pressure on the rupee. As on December 15, 2011, the rupee had depreciated by about 17 per cent against the US dollar over its level on August 5, 2011, the day on which the US debt downgrade happened. In the face of this, several measures were taken to attract inflows. Limits on investment in government and corporate debt instruments by foreign investors were increased. The ceilings on interest rates payable on nonsresident deposits were raised. The allsinscost

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ceiling for external commercial borrowings was increased. Further, a series of administrative measures that discourage speculative behaviour were also initiated. The Reserve Bank is closely monitoring the developments in the external sector and it will respond to the evolving situation as appropriate. Fiscal Situation The central government’s key deficit indicators worsened during 2011-12 (April-October), primarily on account of a decline in revenue receipts and increase in expenditure, particularly subsidies. The fiscal deficit at 74.4 per cent of the budgeted estimate in the first seven months of 2011-12 was significantly higher than 42.6 per cent in the corresponding period last year (about 61.2 per cent if adjusted for more than budgeted spectrum proceeds received last year). The likely slippage in this year’s fiscal deficit has inflationary implications. Money, Credit and Liquidity Conditions The y-o-y money supply (M3) growth moderated from 17.2 per cent at the beginning of the financial year to 16.3 per cent on December 2, 2011, although still higher than the projected trajectory of 15.5 per cent for the year. Y-o-y non-food credit growth at 17.5 per cent on December 02, 2011, however, was below the indicative projection of 18 per cent. Consistent with the stance of monetary policy, liquidity conditions have remained in deficit during this fiscal year. However, the deficit increased significantly beginning the second week of November 2011. The average borrowings under the daily LAF increased to around ` 89,000 crore during November-December (up to December 15, 2011) from around `49,000 crore during April-October 2011. The Reserve Bank conducted open market

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operations (OMOs) on three occasions in November-December 2011 for an amount aggregating about ` 24,000 crore to ease liquidity conditions. There are currently no significant signs of stress in the money market. The overnight call money rate is stable around the policy repo rate and liquidity facilities such as marginal standing facility (MSF) remain unutilised. However, in view of the fact that borrowings from the LAF are persistently above the Reserve Bank's comfort zone, further OMOs will be conducted as and when seen to be appropriate. Outlook Global growth for 2011 and 2012 is now expected to be lower than earlier anticipated. Increased strains in financial markets on the back of growing concerns over euro area sovereign debt, limited monetary and fiscal policy manoeuvrability, high unemployment rates, weak housing markets and elevated oil prices are all contributory factors. These factors have also contributed to moderating growth in the EMEs. As a consequence of all-round slower growth, inflation has also started declining, both in advanced countries and EMEs. On the domestic front, agricultural prospects look promising on the back of expected record kharif output and satisfactory progress on rabi sowing. However, industrial activity is moderating, driven by deceleration in investment, which is a matter of serious concern. Overall, the growth momentum in the economy is clearly moderating. Further, considering the global and domestic macroeconomic situation, the downside risks to the Reserve Bank’s growth projection, as set out in the SQR, have increased significantly.

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Between the First Quarter Review (FQR) and the SQR, while non-oil commodity prices had declined significantly, the rupee too had depreciated sharply. Consequently, the headline inflation projection at 7 per cent for March 2012, as set out in the FQR, was retained in the SQR. With moderation in food inflation in November 2011 and expected moderation in aggregate demand and hence in non-food manufactured products inflation, the inflation projection for March 2012 is retained at 7 per cent. The Reserve Bank will make a formal numerical assessment of its growth and inflation projections for 2011-12 in the third quarter review of January 2012. Guidance While inflation remains on its projected trajectory, downside risks to growth have clearly increased. The guidance given in the SQR was that, based on the projected inflation trajectory, further rate hikes might not be warranted. In view of the moderating growth momentum and higher downside risks to growth, this guidance is being reiterated. From this point on, monetary policy actions are likely to reverse the cycle, responding to the risks to growth. However, it must be emphasised that inflation risks remain high and inflation could quickly recur as a result of both supply and demand forces. Also, the rupee remains under stress. The timing and magnitude of further actions will depend on a continuing assessment of how these factors shape up in the months ahead.

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BANK EXAMS GENERAL AWARENESS MCQs

1. Sushil Kumar, the winner of 'Kaun Banega Crorepati', was appointed as the brand ambass-ador for which of the following programmes? 1) JNNURM 2) IAY 3) Bharat Nirman 4) MGNREGA 5) None of these 2. Mario Monti became the new Prime Minister of which of the following countries in November 2011? (He succeeded Silvio Berlusconi) 1) France 2) Greece 3) Italy 4) Russia 5) Poland 3. Which of the following stateme-nts about the International Child-ren's Film Festival is/are correct? 1) The 17th International Childr-en's Film Festival was titled 'The Golden Elephant'. 2) The film festival was organiz-ed by the Children's Film Soc-iety of India (CFSI). Nandita Das is the chairperson of CFSI. 3) In the Indian competition section, 'Chillar Party' won the Best Feature Film.

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4) Alafzar(Meadow), an Iranian film, was adjudged the Best Feature Film in the Competit-ion International section. 5) All the above are correct. 4. Which of the following countries was suspended from the Arab League in November 2011? 1) Qatar 2) Syria 3) Jordan 4) Libya 5) Saudi Arabia 5. Which is the first Indian comp-any to be listed in NASDAQ? 1) TCS 2) Reliance 3) Infosys 4) Wipro 5) None of these 6. With which game is Vijay Hazare Trophy associated? 1) Hockey 2) Football 3) Tennis 4) Table Tennis 5) Cricket 7. Which of the following countries is not a member of ASEAN? 1) Pakistan 2) Indonesia

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3) Singapore 4) Malaysia 5) Thailand 8. Renowned cricket writer Peter Roebuck committed suicide recently. He was the captain of which of the following English county teams in the 1980s? 1) Oxford shire 2) Somerset 3) Kent 4) Essex 5) Sussex 9. Which city hosted the 17th International Children's Film Festival in November 2011? 1) Mumbai 2) Bangalore 3) Hyderabad 4) New Delhi 5) None of these 10. Who was named the Male World Athlete of the Year for 2011 by athletics' governing body, the International Association of Athletics Federation (IAAF)? 1) Yohan Blake (Jamaica) 2) Kirani James (Grenada) 3) Usain Bolt (Jamaica) 4) LaShawn Merritt (USA) 5) None of these

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11. Sally Pearson, the world 100m hurdles champion, was named the Female World Athlete of the year for 2011 by the IAAF. To which country does she belong? 1) Australia 2) New Zealand 3) U.K. 4) U.S.A. 5) Denmark 12. Which of the following awards/ prizes is given for science? 1) Templeton Prize 2) Jnanpith Award 3) Phalke Ratna 4) Shanti Swarup Bhatnagar Award 5) None of these 13. Who is the author of the book 'The Exile', which is based on the life of Duleep Singh, the last Maharaja of Lahore? 1) Chetan Bhagat 2) Navtej Sarna 3) Mulk Raj Anand 4) Khushwant Singh 5) None of these 14. Which of the following is not a plantation crop? 1) Rubber 2) Arecanut 3) Cocoa

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4) Potato 5) Coconut 15. The term Bull's eye is associated with which of the following sports? 1) Badminton 2) Boxing. 3) Shooting 4) Cricket 5) Hockey 16. Which of the following is/are considered as allied agricultural activity? 1) Poultry 2) Fisheries 3) Dairy 4) Sheep rearing 5) All the above 17. Which of the following program-mes was launched by the govern-ment to develop rural infrastruct-ure in India? 1) SHGs 2) Bharat Nirman 3) JNNURM 4) IAY 5) None of these 18. Which of the following is not the name of a foreign bank? 1) BNP Paribas

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2) Deutsche Bank 3) Barclays 4) Cathay Pacific 5) RBS 19. Which of the following schemes has been successful in attracting children to come to school and get educated? 1) MGNREGA 2) Food for Work 3) Mid Day Meal 4) NRLM 5) None of these 20. Guru Tegh Bahadur Gold Cup tournament is associated with which of the following sports? 1) Hockey 2) Badminton 3) Cricket 4) Soccer 5) None of these 21. Where is the National Commo- dity and Derivatives Exchange Limited (NCDEX) located? 1) Hyderabad 2) Mumbai 3) Kolkata 4) Bangalore 5) New Delhi

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22. Which former Chief Election Commissioner is the author of the book 'The Miracle of Demo-cracy: India's Amazing Journey'? 1) T.N.Seshan 2) M.S.Gill 3) B.B.Tandon 4) T.S.Krishnamurthy 5) Navin Chawla 23. What is the full form of 'POS'? 1) Permission of Sale 2) Point of Sale 3) Point of Support 4) Potential of Service 5) None 24. Which of the following is not a banking term? 1) Overdraft 2) CBS 3) Equator 4) Account payee 5) SME Finance 25. The Doing Business Report (DBR) is released every year by which of the following instituti-ons? 1) IMF 2) World Bank 3) WTO 4) ADB 5) UNCTAD

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26. Which of the following banking terms is used to describe bad loans? 1) CBS 2) NPA 3) RTGS 4) Prime Loans 5) Prime Assets 27. Which country's currency is called Yen? 1) China 2) North Korea 3) South Korea 4) Japan 5) Thailand 28. Which of the following approves the draft of the Five Year Plans? 1) Planning Commission 2) National Innovation Council 3) National Development Council 4) Finance Commission 5) None of these 29. Which of the following is an extra-constitutional and non-statutory body? 1) Election Commission 2) Finance Commission 3) Planning Commission

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4) Union Public Service Commission 5) None of these 30. Which of the following gives Crystal Award? 1) WTO 2) WEF 3) APEC 4) IBRD 5) ADB 31. Which of the following decides the distribution of tax incomes between the central and state governments? 1) Law Commission 2) Pay Commission 3) Planning Commission 4) Finance Commission 5) Administrative Reforms Commission 32. Who is the author of the book 'Termites in the Trading System'? 1) Jagdish Bhagwathi 2) Amartya Sen 3) M.S.Swaminathan 4) Paul Krugman 5) None of these 33. Which of the following is not a football club? 1) Chelsea 2) Arsenal 3) Manchester United

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4) Monte Carlo 5) Liverpool 34. Putrajaya is the administrative capital of which of the following countries? 1) Malaysia 2) Indonesia 3) Sri Lanka 4) Nepal 5) None of these 35. Which of the following South American countries is a member of the Organization of Petroleum Exporting Countries (OPEC)? 1) Peru 2) Ecuador 3) Chile 4) Brazil 5) Argentina ANSWERS: 1) 4 2) 3 3) 5 4) 2 5) 3 6) 5 7) 1 8) 2 9) 3 10) 3 11) 1 12) 4 13) 2 14) 4 15) 3 16) 5 17) 2 18) 4 19) 3 20) 1 21) 2 22) 4 23) 2 24) 3 25) 2 26) 2 27) 4 28) 3 29) 3 30) 2 31) 4 32) 1 33) 4 34) 1 35) 2

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Crisis management group for financial markets on cards

With high volatility in the equity and currency markets, the Government aims to set up an empowered ‘Crisis Management Group' for the financial markets. This group is likely to take shape on December 8, when the sub-committee of the Financial Stability and Development Council (FSDC) will meet. It is proposed to nominate a Deputy Governor of the Reserve Bank of India as the Chairman, along with senior officials from market regulator SEBI, insurance regulator IRDA, pension regulator PFRDA and the Ministry of Finance as members. A senior Government official familiar with the development says, “The effort is to bring sufficiently high level of representation, so that prompt decisions could be taken for effective crisis management.” He said that though every segment of the financial sector has crisis prevention systems in place, an integrated system was needed to avoid sudden shocks which can quickly spread across market segments and institutions. The genesis of the crisis may be different from time to time, but the manifestation is similar. Timely management of the crisis requires early detection of fault lines based on information on diverse institutions and markets, he added. The official explained the whole concept with the impact of Euro zone crisis on the Indian capital and financial systems. The benchmark BSE Sensex is down by over 18 per cent from January. Analysts say it is because foreign institutional investment in equity markets has turned negative by $187 million (January 3-December 2, 2011).

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This and several other factors have impacted the rupee, which depreciated by over 15 per cent. On the other hand, a sudden fall in the market price of equity or debt instruments might trigger redemption pressure on mutual funds. Liquid funds Among mutual funds, as on October 31, 2011, income funds had the largest share of assets at 45 per cent, followed by liquid or money market funds with 24 per cent and equity funds with 23 per cent. Here the most happening segment is liquid fund. As on September 30, the investor profile of liquid funds was dominated by corporates with 75 per cent share and banks/financial institutions with 20 per cent. Now, when corporates, banks or any other financial institutions face liquidity shortfall, they start withdrawing from liquid funds. At the same time, fresh investment falls, leading to liquidity pressure on entities like non-banking financial companies, which receive investments from liquid funds.

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IBPS CLERKS EXAM GENERAL AWARENESS MODEL PAPER

1. Who among the following served as the first chairman of the governing body of IBPS? 1) Dr. Manmohan Singh 2) Sir Smith 3) P. C. Mahalanobis 4) Dr. J.C. Chakraborthy 5) Dr. A.K.Qureshi 2. 'Saranda Action Plan', has been recently launched by Rural Development Ministry. It will be implemented firstly in Naxal-hit Saranda district of which among the following states? 1) Chhattisgarh 2) Jharkhand 3) Odisha 4) Punjab

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5) Haryana 3. How many key infrastructure sectors are known as Core sector in India Economy used for Index of Industrial Production (IIP) data? 1) six 2) seven 3) eight 4) ten 5) three 4. The Ennahda Party has emerged as largest political party in the first elections after the Arab Spring in which among the following countries? 1) Tunisia 2) Syria 3) Libya 4) Algeria 5) Sudan 5. Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) was initiated by which among the following countries? 1) India 2) Sri Lanka 3) Maldives 4) Mauritius 5) Nepal 6. Nabam Tuki has been sworn in as Chief Minister of which among the following states recently?

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1) Nagaland 2) Mizoram 3) Arunachal Pradesh 4) Meghalaya 5) Sikkim 7. Who among the following has recently topped the Fortune India's 50 Most Powerful Women in Business list? 1) Kiran Mazumdar Shaw 2) Chanda Kochar 3) Ekta Kapoor 4) Shikha Sharma 5) Lalitha Dutta 8. Which among the following decides the Saving Banks Account Interest Rate in India? 1) Ministry of Finance 2) Reserve Bank of India 3) Indian Banks' Association (IBA) 4) Banks themselves 5) IBPS 9. For which among the following criminal activities related to Business, tycoon Raj Rajaratnam was sent to jail recently? 1) Terrorist Funding 2) Insider Trading 3) Tax Evasion 4) Hawala Transaction 5) Smuggling

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10. Which of the following banks recently completed its Platinum Jubilee celebrations? 1) Central Bank of India 2) Reserve bank of India 3) Andhra Bank 4) Canara Bank 5) IDBI 11. Unique Identification Authority of India (UIDAI), which provides AADHAAR is a part of which among the following? 1) National Development Council 2) Planning Commission 3) Ministry of Home Affairs 4) Ministry of Planning and Implementation 5) Planning and Statistics 12. Which among the following country is the host to 17th South Asian Association for Regional Cooperation (SAARC) summit in November 2011? 1) Bangladesh 2) Maldives 3) Nepal 4) Pakistan 5) India 13. Accounts are allowed to be operated by cheques in respect of ________ 1) Both saving bank accounts and fixed deposit accounts

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2) Both saving bank accounts and current accounts 3) Both saving bank accounts and loan accounts 4) Both saving bank accounts and cash accounts 5) Both saving bank account and credit accounts 14. Vasanth Sathe , who recently died is known for spearheading the move to bring which among the following to India 1980s? 1) Personal Computers 2) Color TVs 3) Washing Machines 4) Motor Cycles 5) Telecom revolution 15. Recently which of the following bank celebrated its CENTENARY Anniversary ? 1) Andhra Bank 2) Bank of India 3) Central Bank of India 4) Vijaya Bank 5) Canara Bank 16. The students of which among the following institutions have built the 'Jugnu' satellite which is a remote-sensing satellite that will monitor vegetation and waterbodies? 1) IIT Kanpur 2) IIT Kharagpur 3) SRM University 4) Andhra University 5) Delhi University

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17. Who among the following is the winner of 26th Indira Gandhi Award for National Integration? 1) Anil Kakodkar 2) Amjad Ali Khan 3) Mohan Dharia 4) Prof. Jagdish Bhagwati 5) Prof.Niharika VidyaSagar 18. On October 25, the Reserve Bank of India (RBI) had deregulated the savings bank deposit rates and asked banks to determine their own. Banks are required to offer a uniform rate on deposits up to which among the following amounts? 1) Rs. 50,000 2) Rs. 1,00,000 3) Rs. 1,20,000 4) Rs. 1,50,000 5) Rs.2,00,000 19. What is the requirement of the minimum capital adequacy ratio under the new Basel III guidelines released in 2010? 1) 9% 2) 9.5% 3) 10% 4) 10.5% 5) 11% 20. Which among the following states have topped India Human Development Report 2011?

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1) Kerala 2) Tamil Nadu 3) Himachal Pradesh 4) Punjab 5) Andhra Pradesh 21. Who among the following is India's Permanent Representative to the United Nations? 1) Arundhati Ghose 2) Hardeep Singh Puri 3) B N Rau 4) Nirupam Sen 5) Nidhi Razdan 22. P. C. Haldar was recently making news for being appointed as interlocutor by the Government to remove bottlenecks on the road to a dialogue in which among the following issues in India? 1) Gorkhaland Talks 2) Assam Peace Talks 3) Jammu & Kashmir Problem 4) Naxalite Problem 5) Delhi bomb blasts 23. Before it was transferred to Agriculture Insurance Company of India Ltd, the National Agricultural Insurance Scheme was being implemented by which among the following companies? 1) General Insurance Corporation of India 2) Oriental Insurance Company Ltd. 3) New India Assurance Company Ltd.

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4) National Insurance Company Ltd 5) Food Corporation of India 24. As per the latest data, which among the following is the nearest figure to the average population of India per bank branch? 1) 8000 2) 13000 3) 18000 4) 21000 5) 25000 25. Who among the following is the current Chief of National Security Guards? 1) AK Mitra 2) JK Dutt 3) NPS Aulakh 4) Rajan K Medhekar 5) Jagadish Patnaik 26. RBI has decided to release Rs 5 coin to mark the 1000 years of which of the following temple recently ? 1) Vaishno Devi temple 2) Brihadeswara temple 3) Kashi Vishwanath temple 4) Sabarimala Temple 5) Tirumala Dwaraka 27. Which of the following approved $ 1 billion loan for the National Ganga River Basin project recently ?

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1) Asian Development Bank 2) World Bank 3) UNEP 4) IMF 5) None 28. The National Green tribunal headquartered at Delhi will have benches at all the following places except ___ 1) Bhopal 2) Pune 3) Kolkatta 4) Jaipur 5) Chennai 29. India assumed the chairmanship of which of the following international organisations in September 2011 ? 1) G24 2) BRICS 3) G20 4) G8 5) IBSA 30. Which of the following is a private sector bank ? 1) Corporation Bank 2) Indian Bank 3) Karur Vysya Bank 4) Oriental Bank of Commerce 5) None of the above

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31. What is the minimum time of operation an insurance company is required to complete for becoming eligible to launch an IPO ( Initial Public Offer )? 1) 2 years 2) 5 years 3) 7 years 4) 8 years 5) 10 years 32. SCORES is a complaint redressal system launched by ____ 1) CCI 2) RBI 3) TRAI 4) SEBI 5) SBI 33. The national broadband plan is aimed at rolling out broadband infrastructure to every village with more than____ people ? 1) 2000 2) 3000 3) 1000 4) 200 5) 500 34. Indian mining companies have bid for stake in Hajigak ore mines in Afghanistan, which of the following is the mines famous for ? 1) Iron 2) Bauxite

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3) copper 4) Coal 5) Cobalt 35. From which of the following state National Rural Livelihood Mission launched recently? 1) Andhra Pradesh 2) Punjab 3) Haryana 4) Karnataka 5) Rajasthan 36. 'Aichi Targets' refers to which of the following? 1) Trade 2) Environment 3) S & T 4) Commerce 5) Education 37. Where in India World Spice Organisation set up recently ? 1) Guntur 2) Bangalore 3) Chennai 4) Kochi 5) Delhi 38. ASHA is a low priced milk food drink introduced for rural consumers by which of the following ? 1) Nestle

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2) Amul 3) Heinz 4) GlaxosmithKline 5) None 39. Which of the following is the new income tax return form for salaried employees introduced by Finance Minister Recently ? 1) Suvida 2) Sugam 3) Sahaj 4) Saral 5) Samasya 40. Which Bank has announced an end to its TEASER home loan scheme recently? 1) SBI 2) Andhra Bank 3) Vijaya Bank 4) ICICI 5) HDFC 41. Kimberley process certificated are compulsory for trade in which of the following ? 1) Gold 2) Trade 3) Diamonds 4) Nuclear materials 5) Radio active materials

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42. Accredited Social Health Activists (ASHAs ) in which of the states are known as Mitanins ? 1) Punjab 2) Haryana 3) Chhattisgarh 4) Madhya Pradesh 5) Kerala 43. Which of the foreign bank has the highest number of employees in India ? 1) HSBC 2) RBS 3) Bank of America 4) UBS 5) Standard Chartered Bank 44. What is the FDI limit in the insurance sector in India ? 1) 26 % 2) 25 % 3) 30% 4) 50% 5) 49 % 45. Which of the following state has recently announced a monthly allowance to unemployed under graduates recently ? 1) Karnataka 2) Rajasthan 3) Goa 4) Maharashtra 5) Punjab

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46. Which of the following has launched the EVERYWHERE TELLER MACHINE in India ? 1) Andhra Bank 2) ICICI Bank 3) Axis Bank 4) RBS 5) SBI 47. French Auction is a term used in which of the following sectors of financial services ? 1) Capital Markets 2) Banks 3) Insurance 4) NBFC 5) Micro Credit 48. Which state has the second highest literacy rate as per the provisional figures of the census 2011 ? 1) Gujarat 2) Mizoram 3) Assam 4) Rajasthan 5) Punjab 49. China emerged as the world's second largest economy in 2010 overtaking which of the following ? 1) France 2) Germany

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3) Italy 4) India 5) Japan 50. The new head of IMF is ? 1) Montek Singh Ahluwalia 2) Christine Lagarde 3) John Paul 4) Liu Xiabaou 5) Robert Zoellick ANSWERS: 1)1 2)2 3)3 4)1 5)4 6)3 7)2 8)4 9)2 10)2 11)2 12)2 13)2 14)2 15)3 16)1 17)3 18)2 19)4 20)1 21)2 22)2 23)1 24)2 25)4 26)2 27)2 28)4 29)2 30)4 31)5 32)4 33)5 34)1 35)5 36)2 37)4 38)4 39)3 40)1 41)3 42)3 43)5 44)1 45)3 46)3 47)1 48)2 49)5 50)2

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IBPS CWE GENERAL AWARENESS MODEL PAPER

1. Lucas Papadesmos became the new Prime Minister of which of the following countries in November 2011? 1) Spain 2) Italy 3) Greece 4) Belgium 5) None of these 2. Which Indian city hosted the World Economic Forum's (WEF) Indian Economic Summit in November 2011? 1) Mumbai 2) New Delhi 3) Chennai 4) Bangalore 5) Hyderabad 3. Moshe Katsav has been sentenced to seven years in prison on the charges of sexual harassment and obstruction of justice. He was the 8th President of whi-ch of the following countries? 1) Iran 2) Israel 3) Syria 4) Sudan 5) Germany 4. Which former Australian cricketer's autobiography is titled 'Fierce

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Focus'? 1) Allan Border 2) Shane Warne 3) Steve Waugh 4) Greg Chappell 5) Adam Gilchrist 5. Which of the following teams lifted the Beighton Cup hockey tournament in November 2011? 1) IOC 2) ONGC 3) Air India 4) Railways 5) None of these 6. Who became the first batsman in Test cricket history to score four centuries in successful fourth innings run chases in November 2011? 1) Hashim Amla 2) Graeme Smith 3) Ricky Ponting 4) Rahul Dravid 5) Sachin Tendulkar 7. Who was reelected as the Presid-ent of Liberia in November 2011? 1) Joseph Boakai 2) Gyude Bryant 3) William Tolbert

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4) Ellen Johnson Sirleaf 5) None of these 8. Indian Prime Minister Manmohan Singh addressed the People's Majlis recently. It is the Parliament of which of the following countries? 1) Iraq 2) Maldives 3) Lebanon 4) UAE 5) Saudi Arabia 9. Which country lifted the inaugural Sultan of Johor Cup hockey tournament in November 2011? 1) Malaysia 2) Australia 3) India 4) South Korea 5) None of these 10. Which country test fired Jericho, a ballistic missile, in November 2011? 1) Pakistan 2) Israel 3) Iran 4) Iraq 5) None of these 11. Who is the winner of the National Premier Women's chess

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championship that was held in Chennai in November 2011? 1) Mary Ann Gomes 2) Eesha Karavade 3) Tania Sachdev 4) Nisha Mohota 5) Padmini Rout 12. Who is the first player to take 500 catches in Test cricket? 1) Rahul Dravid 2) Adam Gilchrist 3) Mark Boucher 4) Kumar Sangakkara 5) None of these 13. Joe Frazier died of liver cancer. In which of the following sports did he excel? 1) Golf 2) Boxing 3) Squash 4) Snooker 5) Weightlifting 14. Which city hosted the 23rd annual meeting of the Asia Pacific Economic Cooperation (APEC) in November 2011? 1) Canberra 2) Singapore 3) Seoul 4) Bangkok 5) Honolulu

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15. Which of the following statements about the South Asian Association for Regional Coope-ration (SAARC) is/are true? 1) SAARC was started in 1985 with headquarters in Kathmandu. 2) It is dedicated to economic, technological, social and cultural development emphasizing collective self reliance. 3) Mohamed Nasheed is the present chairman of SAARC. 4) The 17th SAARC Summit was held in Addu city, Maldives in November 2011. 5) All the above are correct. 16. ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corporation, has signed an agreement to take a 25 per cent stake in Satpayev oil block. In which country is Satpayev block located? 1) Russia 2) Mongolia 3) Ukraine 4) Kazakhstan 5) Kyrgyzstan 17. Which state became the first in the country to achieve total financial inclusion in September 2011? (Each household in the state has at least one bank account) 1) Tamil Nadu 2) Kerala 3) Karnataka 4) Manipur 5) Assam

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18. DVC, NHPC, PGCIL and NTPC are the four public sector undertakings working in which of the following sectors? 1) Coal 2) Telecom 3) Power 4) Textiles 5) None of these 19. Who is the author of the book "India and Global Financial Crisis: Managing Money and Finance"? 1) P. Chidambaram 2) Pranab Mukherjee 3) C.Rangarajan 4) Y.V.Reddy 5) Bimal Jalan 20. What is the full form of NFSM? 1) National Food Security Mechanism 2) New Food Security Mechanism 3) National Food Security Mission 4) National Farmers Security Mechanism 5) None of these 21. India is not a member of which of the following organizations? 1) BRICS 2) IBSA 3) SAARC 4) OPEC

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5) The Commonwealth 22. Which of the following is not a Kharif crop? 1) Rice 2) Wheat 3) Sorghum 4) Bajra 5) Ragi 23. What per cent of foreign direct investment (FDI) is allowed in apiculture (beekeeping) under controlled conditions? 1) 20% 2) 26% 3) 100% 4) 49% 5) None of these 24. The FDI limit in FM radio has been increased from the existing 20% to? 1) 26% 2) 51% 3) 49% 4) 100% 5) None of these 25. Which is the largest producer and the consumer of tea in the world? 1) Brazil 2) India

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3) Indonesia 4) Pakistan 5) Vietnam 26. Which state has the highest number of operational special economic zones in India? 1) Tamil Nadu 2) Karnataka 3) Maharashtra 4) Kerala 5) Andhra Pradesh 27. Which of the following has become the first public sector company to introduce Employee Stock Option Plan (ESOP) for its employees? 1) NMDC 2) IOC 3) NALCO 4) NTPC 5) ONGC 28. Which of the following groups can be called financially excluded people? 1) Urban slum dwellers 2) Marginal farmers 3) Landless laborers 4) Unorganized sector employees 5) All the above

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29. In which year was the Bank of Calcutta established? 1) 1802 2) 1805 3) 1806 4) 1809 5) 1800 30. Which of the following stock exchanges was initially known as "The Native Share & Stock Brokers Association"? 1) Bombay 2) Madras 3) Jaipur 4) Cochin 5) Uttar Pradesh 31. Who among the following served as the Finance Minister before becoming the President of India? 1) N.Sanjeeva Reddy 2) Pratibha Patil 3) R.Venkatraman 4) A.P.J.Abdul Kalam 5) S.Radhakrishnan 32. Which bank has recently launched 'Everywhere Teller Machine' service in Vijayawada, Andhra Pradesh? (ETM allows debit card holders to withdraw upto Rs.1000 in cash per day from a Point of Sale terminal at select merchant outlets.) 1) ICICI Bank 2) Axis Bank

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3) SBI 4) SBH 5) HDFC Bank 33. The Hindustan Copper Limited will develop an underground copper-ore mine at Malanjkhand with an investment of Rs.1,856 crore. In which state is this mine located? 1) Rajasthan 2) Madhya Pradesh 3) Jharkhand 4) Orissa 5) Bihar 34. Alok Prasad is the Chief Executive Officer of which of the following industry associations? 1) ASSOCHAM 2) FICCI 3) MFIN 4) NASSCOM 5) None of these 35. Who is the chairman of the Wor-king Group on Benchmark Prime Lending Rate (BPLR) appointed by the Reserve Bank of India? 1) Deepak Mohanty 2) Bimal Jalan 3) Usha Thorat 4) R.V.Gupta 5) None of these

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ANSWERS: 1. (3) 2. (1) 3. (2) 4. (4) 5. (1) 6. (2) 7. (4) 8. (2) 9. (1) 10. (2) 11. (1) 12. (3) 13. (2) 14. (5) 15. (5) 16. (4) 17. (2) 18. (3) 19. (4) 20. (3) 21. (4) 22. (2) 23. (3) 24. (1) 25. (2) 26. (5) 27. (3) 28. (5) 29. (3) 30. (1) 31. (3) 32. (2) 33. (2) 34. (3) 35. (1)

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Equip ATMs to accept cash directly, suggests panel

A year down the line government-owned bank ATMs in urban as well as rural areas may start accepting cash (not in an envelope but directly), have solar powered back-up, and 24x7 surveillance. The aforementioned are some of the recommendations of a government-appointed committee on ATMs headed by Dr Ashok Jhunjhunwala, Professor, IIT-Madras. These come at a time when the Government has directed the 21 banks in which it owns majority stake to go in for joint procurement of ATMs.

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Cash acceptor Besides dispensing notes, which are soiled but can be issued, and retracting notes left behind by customers, the ATMs to be deployed by public sector banks will come equipped with a cash acceptor. The cash acceptor will accept teller grade currency notes of denominations ranging from Rs 50 to Rs 1,000. The idea behind incorporating the cash acceptance feature — intra-bank and inter-bank — in ATMs is to ensure that customers such as small retailers, traders, and vegetable vendors can deposit cash after the close of business hours and get immediate credit for the same in their account. Banks could also add the currency recycle feature so that the frequency of replenishing the ATMs comes down. Currently, bank ATMs offer cash deposit facility in an envelope. However, there is a delay of a day or two in crediting the depositor's account. This is so because the envelope has to be deposited at the designated branch, and opened and counted by bank staff in the presence of two witnesses. Integrated Surveillance To tackle incidents such as stolen ATM cards being misused, the committee said all ATMs must have an internal camera. It should store images in a digital format for at least two months. The integrated ATM surveillance solution must be able to capture and stamp the transaction information on the images and also allow for monitoring from a central location.

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ATMs must be able to handle an average of 300 transactions in urban and semi-urban areas and 200 transactions in rural areas in a day and must work for at least 16 hours a day using solar power alone. The committee has emphasised the importance of solar powered back-up for ATMs due to the frequent power cuts in rural and semi-urban areas. Further, the ATMs must be able to function without air-conditioner. Besides cash withdrawal and acceptance, ATMs should, among others, enable transactions such as change in personal identification number (PIN), registration for mobile banking, mini-statement of last 10 transactions, balance enquiry, request for cheque books and funds transfer (intra and inter bank)

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IRDA launched Two Online Initiatives to Safeguard the Interest of Insurance-seekers

The Insurance Regulatory and Development Authority (IRDA) announced two online initiatives to safeguard the interest of insurance-seekers. The first of the two online initiatives is the extensive guidelines pertainining to web aggregators and the second one relates to the launch of a mobile application to compare unitlinked insurance policies (ULIPS) from various companies and their premium rates. Guidelines to web aggregators Web aggregators are sites like policybazaar.com, i-save.com, medimanage.com and click2insure.in that provide information on insurance products from various companies. The information so collated can help insurance-seekers compare premium rates for life, health, travel and motor insurance. Most portals just generate leads and not all offer the option to purchase a product online. However, some do facilitate an online buying process to the extent possible, usually by directing the insurance-seekers to the companies’ website. However, aggregators often sell visitors’ personal information to several insurers, resulting in customers being bombarded with sales calls from the companies or their agents. IRDA therefore directed the aggregators not to pass visitor’s information on to companies on the site’s home page. To ensure that aggregators do no indulge in promoting products, the

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insurance regulator has decreed that they cannot display ratings, rankings, endorsements or bestsellers of insurance products on their websites. Similarly, they have been barred from commenting on insurers or their products. In addition, aggregators will from here on be required to highlight links to the product comparison charts and tables for each category of products covered by them. Items to be displayed include premiums quoted by each insurer as per age and other personal details, policy and premium term, sum assured, default underwriting requirements such as medical examination, diagnostics, etc, and key features of the product chosen. The diktat also puts the onus of safeguarding and securing the entire process on the aggregators. Launch of the mobile application The launch of the mobile application, is intended to help insurance-seekers compare ULIPs launched after 1 September 2010. The tool, which works on Android, iPhone, Nokia and Blackberry platforms, has been termed a mobile application and can be accessed even via a personal computer. Users can search products for comparison through three options – By company, Policy type and Keywords. Up to three products can be selected at a time for comparison, with the criteria listed being benefits offered, premium-paying term, tenure, charges and so on.

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GENERAL KNOWLEDGE PRACTICE MCQs

1. Namrata Randhawa Haley (Nik-ki Haley) is the first woman and non-white governor of which of the following states of the USA? 1) Louisiana 2) South Carolina 3) Texas 4) Alaska 5) California 2. Identify the mismatched pair 1) January 9 -Pravasi Bharatiya Divas (NRI Day) 2) January 12-National Youth Day 3) January 15 - Army Day 4) January 24- National Girl Child Day 5) January 27-National Voters Day 3. Fathimath Dhiyana Saeed is the new Secretary General of SAARC. She was the former attorney general of which of the following countries? 1) Pakistan 2) Afghanistan 3) Maldives 4) Bangladesh 5) India 4. The Permanent Representative of India to the United Nations is also presently the chairman of the United Nations Security Council

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Counter-Terrorism Committee. Name him/her? 1) Hardeep Singh Puri 2) Meera Shankar 3) Nirupama Rao 4) Ranjan Mathai 5) None of these 5. Who is the first sitting head of state ever indicted by the International Criminal Court (ICC) as well as the first to be charged with genocide? 1) Zubair Mohamed Salih 2) Ali Osman Taha 3) Omar al-Bashir 4) John Garang 5) None of these 6. Who among the following is the winner of the Phalke Ratna Award for the year 2011? 1) Dev Anand 2) Dharmendra 3) Shammi Kapoor 4) Shashi Kapoor 5) Amitabh Bachchan 7. Which of the following pairs is not matched correctly? AUTHOR BOOK 1) Tony Blair - A Journey 2) George Bush - Decision Points 3) Bill Clinton - My Life

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4) Cherie Blair- Speaking for Myself 5) Ronald Reagan- Going Rogue: An American Life 8. Where are the headquarters of ASEAN located? 1) Jakarta 2) Manila 3) Singapore 4) Bangkok 5) Kuala Lumpur 9. Which of the following organisations was officially commenced on January 1, 1995 under the Marrakech Agreement? 1) UNO 2) IMF 3) World Bank 4) ADB 5) WTO 10. Which foreign bank has 4.8% stake in Yes Bank? 1) BNP Paribas 2) Rabobank 3) HSBC 4) RBS 5) Barclays 11. Identify the mismatched pair COUNTRY PRESIDENT 1) Sri Lanka- Mahinda Rajapakse 2) Iran -Mahmoud Ahmadinejad

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3) Chile - Sebastian Pinera 4) Philippines - Benigno Aquino 5) Zimbabwe- Goodluck Jonathan 12. Which of the following statements about the Youth Olympic Games is not true? 1) The Youth Olympic Games (YOG) are held every four years and these games feature athletes between the ages of 14 and 18. 2) Johann Rosenzopf of Austria has developed the idea of the YOG. 3) The first summer YOG were held in Singapore in 2010. 4) The second summer YOG will be held in Nanjing, China in 2014. 5) The inaugural winter YOG will be held in Sochi in 2012. 13. Identify the mismatched pair ORGANIZATION CHIEF 1) World Bank -Robert Zoellick 2) IMF -Christine Lagarde 3) WTO -Pascal Lamy 4) ADB - Haruhiko Kuroda 5) Amnesty International-Kamalesh Sharma 14. Which of the following books is not written by Chetan Bhagat? 1) Five Point Someone 2) One Night @ Call Center 3) Three Mistakes of My Life 4) Listening to Grasshoppers 5) 2 States:The Story of My Marriage 15. Which of the following famous personalities is the brand

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ambassador of Bank of Baroda? 1) Yusuf Pathan 2) Geet Sethi 3) Amitabh Bachchan 4) Irfan Pathan 5) Rahul Dravid 16. Which city will host the 99th Indian Science Congress in January 2012? 1) Chennai 2) Bhubaneswar 3) New Delhi 4) Hyderabad 5) Kolkata 17. Who among the following is a Billiards/ Snooker champion? 1) Jyothi Randhawa 2) Jeev Milka Singh 3) Pankaj Advani 4) Arjun Atwal 5) Gaganjeet Bhullar 18. Which of the following Prizes is given for mathematicians? 1) Templeton Prize 2) Nobel Prize 3) Kalinga Prize 4) Abel Prize 5) Pritzker Prize

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19. Which of the following books is not written by Orhan Pamuk, the Nobel Prize winner from Turkey? 1) My Name is Red 2) Snow 3) Enigma of Arrival 4) The Museum of Innocence 5) Istanbul: Memories and the City 20. Anil Agarwal is the chief of which of the following companies? 1) Corus 2) Caparo 3) Arcelor Mittal 4) Vedanta Resources 5) Ashok Leyland 21. Which company manufactures Blackberry smart phones? 1) Nokia 2) Samsung 3) Onida 4) Sony Ericsson 5) Research In Motion 22. The headquarters of the North Atlantic Treaty Organization (NATO) is situated in which of the following cities? 1) London 2) Washington 3) Brussels 4) Vienna 5) Paris

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23. Which of the following countries will host both the 2014 FIFA world cup football and the 2016 Olympic Games? 1) UK 2) Brazil 3) South Africa 4) USA 5) Qatar 24. Merdeka Cup is associated with which of the following sports? 1) Cricket 2) Football 3) Hockey 4) Chess 5) Volleyball 25. The recession occurring two times with a short gap in between is called? 1) Double deflation 2) Double inflation 3) Double Dip recession 4) Depression 5) None of these 26. Which of the following terms is not used in Cricket? 1) Ashes 2) Doosra 3) Silly Point 4) Love

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5) Long On 27. What is the full form of SHGs? 1) Self Help Groups 2) Small Help Groups 3) Small Hope Groups 4) Self Hope Groups 5) Selfless Help Groups 28. In which year were the SBI Associate Banks nationalized? 1) 1955 2) 1949 3) 1959 4) 1969 5) 1980 29. In which year was the IDBI established? 1) 1961 2) 1960 3) 1962 4) 1964 5) 1965 30. Small Industries Development Bank of India (SIDBI) was established in 1990 with the headquarters in? 1) Lucknow 2) New Delhi 3) Mumbai 4) Nagpur

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5) Kolkata 31. In which year did NHB start its operations? 1) 1985 2) 1988 3) 1987 4) 1990 5) 1992 32. Which city hosted the 12th Inter-national Indian Film Academy (IIFA) Awards ceremony in June 2011? 1) Bangkok 2) Macau 3) Colombo 4) Toronto 5) None of these 33. Who was selected for the prestigious G.D. Birla Award for Scientific Research for his contributions in the area of electronic communications for the year 2011? 1) Mahindra Agrawal 2) Subhasis Chaudhuri 3) Raghavan Varadarajan 4) Santanu Bhattacharya 5) None of these 34. The Saraswati Samman, an annual award for outstanding prose or poetry literary works in any Indian language, was instituted in 1991 by the K.K. Birla Foundation. Who was given this award in

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April 2011? 1) S.L. Bhyrappa 2) Surjit Paatar 3) Naiyer Masud 4) Jagannath Prasad Das 5) None of these 35. The Vyas Samman, instituted by the K.K. Birla Foundation, is given to an outstanding literary work in Hindi authored by an Indian citizen during the preceding ten years. Who was given this award for 2010 for his collection of poems 'Phir Bhi Kuch Rah Jayega'? 1) Amar Kanth 2) Mannu Bhandari 3) Vishwanath Prasad Tiwari 4) Kailash Vajpayee 5) None of these 36. In which field is the Chameli Devi Jain Award given annually? 1) Social Work 2) Journalism 3) Classical Dance 4) Cinema 5) Trade and Industry 37. The K.C Kulish International Award for Excellence in Print Media 2009 was conferred on the team of 'The New Crusading Guide' in June 2011. It is a newspaper published in which of the following countries? 1) South Africa

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2) Sudan 3) Zimbabwe 4) Ghana 5) Egypt

Answers 1) 2 2) 5 3) 3 4) 1 5) 3 6) 2 7) 5 8) 1 9) 5 10) 2 11) 5 12) 5 13) 5 14) 4 15) 5 16) 2 17) 3 18) 4 19) 3 20) 4 21) 5 22) 3 23) 2 24) 2 25) 3 26) 4 27) 1 28) 3 29) 4 30) 1 31) 2 32) 4 33) 2 34) 1 35) 3 36) 2 37) 4

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Market Capitalization of all 24 Listed Public Sector Banks below that of 15 Listed Private Banks

The combined market capitalization of all 24 listed public sector banks,which control 73% of bank deposits,is currently below that of the 15 listed private banks. On 15 November 2011, the combined market capitalization of the 24 public sector banks which include 19 nationalized banks, SBI and its three associates and IDBI was Rs 311877 crore. As against this,the market capitalization of 14 private banks was Rs 321613 crore. This is a reversal of the position at the beginning of 2011. As on 1 April 2011, the total mkt-cap of government-owned banks was Rs 439600 crore much higher than the Rs 374218 crore for private banks. As on end-June 2011,PSU banks accounted for 74.6% of bank deposits while private sector banks had only 18%,with the rest of the funds lying with regional rural banks and foreign banks.In matters of credit, PSU banks account for 74.9% of bank loans in the country while private banks have only a 17.6% share. Two bad quarters of 2011-12 for State Bank of India and reports of loan restructuring and NPA worries in public sector banks hit valuations hard. HDFC Bank overtook SBI to become the most valuable bank in the country.Incidentally,SBI the largest lender in the country has

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contributed the most to the decline in value of public sector banks. PSU banks can work around capital constraints in the short-term by consolidation or via a relaxation in norms that require the government to hold a minimum 51% stake.There also exists larger social burden on the public sector banks because of which they have had to restructure large loans. Compared to them the private banks have been selective in their lending and have had far fewer NPAs.

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Corp Bank scheme for Kerala Govt employees December 01, 2011 Corporation Bank has announced special benefits for the permanent employees of the State Government. Mr A.M.M.G. Nair, Zonal Manager, Corporation Bank, regional office, Kochi, said Corp Payroll Account is available for routing the salary of permanent employees through which they can withdraw 50 per cent of the amount as overdraft from the second month. Instant ATM-cum-debit card, Internet banking, SMS banking, free remittance facility, cheque book, multi-city cheques and passbook are also available. Payment of tax, insurance payment and NEFT can be done free of charge through Internet and ATM. There is a concession of 1 per cent on interest rates and 50 per cent of processing charges on housing loans and 0.25 per cent concession on interest rates for vehicle loans. Gift cards are also available free of charge.

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BANKING AWARENESS MCQs

1.Which of the following bodies tightened the norms for foreign exchange risk cover in India mentioning that only companies with a networth of Rs 200 crore can use derivatives to hedge against risk of volatility in currency rates? a.IMF b. Reserve Bank of India c. SEBI d. Union Ministry of Finance Ans: b 2. Which body in India finally provided tax exemption on the 9.5 per cent interest income on PF deposits for 2010-11? a.Reserve Bank of India b. Income Tax Department c. Employees’ Provident Fund Organisation d. Corporate Affairs Ministry Ans: b 3.(1) The report on Customer Service in Banks by a committee chaired by M. Damodaran, former Chairman of the Securities and Exchange Board of India (SEBI) that was released on 3 July 2011 recommended an increased deposit insurance cover of Rs.5 lakh so as to encourage individuals to keep all their deposits in banks. (2) The panel also suggested blocking of lost ATM cards through

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SMS and immediate restoration of funds in case of non-dispensation of cash at an ATM within 5 working days. Which of the above is not true? a. Only 1 b. Only 2 c. Both 1 & 2 d. None of the above Ans: b 4. The Reserve Bank of India (RBI) in a bid to tame inflationary pressure hiked the short-term indicative policy rate (repo rate) by 50 basis points on 26 July 2011. The repo rate currently stands at what percentage? a. 7% b. 7.5% c. 8% d. 8.5% Ans: c 5. Which bank posted a 99 per cent drop in net profit at Rs 21 crore for the fourth quarter ended 31 March 2011 against Rs 1867 crore during the corresponding period in 2010? a. Indian Overseas Bank b. State Bank of India c. Bank of India d. United Bank of India Ans: b 6. Who did global payments processing company MasterCard

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appoint as the General Manager, South Asia and Country President, India? a. T. V. Seshadri b. Vicky Bindra c. Tunde Lemo d. Ajay Banga Ans: a 7. Government of India on 19 July 2011 appointed Usha Ananthasubramanian, former general manager of Bank of Baroda (BoB) as executive director of which public sector lender? a. Central Bank of India b. Punjab National Bank c. United Bank of India d. Gramin Bank Ans: b 8. Name the public sector lender that selected Metlife as its partner for a proposed foray into the life insurance segment. a. Syndicate Bank b. Punjab National Bank c. Corporation Bank d. United Bank of India Ans: b 9. Which bank signed a memorandum of understanding with Dewan Housing Finance Corporation (DHFL) under which DHFL will distribute home loans to Yes Bank's customers? a. Canara Bank

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b. ABN Amro bank c. Yes Bank d. HSBC Ans: c 10. Which life insurance company in India launched a new non-linked health insurance plan, Jeevan Arogya? a. HDFC Standard Life Insurance Co. Ltd b. Life Insurance Corporation of India c. IDBI Fortis Life Insurance Company Ltd. d. SBI Life Insurance Co. Ltd Ans: b 11. Which of the following public sector banks in November 2011 froze its lending to the power sector? a. State Bank of India b. Allahabad Bank c. Punjab National Bank d. United Bank of India Ans: b 12. Which Indian bank on 10 May 2011 raised benchmark prime lending rate 75 basis points to 14% following raising of interest rates by RBI by basis points on 3 May 2011? a. State Bank of India b. Union Bank c. Punjab National Bank d. Bank of Baroda Ans: a

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13. The Reserve Bank of India on 26 April 2011 fined 19 banks, including the country's top private and foreign banks for violating its guidelines on derivatives. Which is the only public sector bank on the list of banks to be fined? a. State bank of India b. Punjab National Bank c. Bank of India d. Indian Bank Ans: a 14. The Reserve Bank of India on 25 August 2011 released its Annual Report for 2010-11. Which of the following was not discussed in the Annual Report the Central Board of the RBI? a. assessment of the macroeconomic performance during 2010-11 b. prospects for 2011-12 c. working and operations of the Reserve Bank and its financial accounts d. role of regulatory bodies in controlling the financial markets Ans: d 15. Reserve Bank of India (RBI) panel headed by headed by Usha Thorat, Director, Centre for Advanced Financial Research and Learning (CAFRAL) on 29 August 2011 came up with suggestion on non-banking finance company (NBFC). Which of the following related to this statement is not true? 1. The panel suggested the central bank to insist on a minimum asset size of more than Rs.25 crore for registering any new non-banking finance company (NBFC)

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2. Transfer of shareholding, direct or indirect, of 25 per cent and above, change in control, merger or acquisition of any registered NBFC will require prior approval of the Reserve Bank. 3. Tier-I capital for capital to risk weighted assets ratio (CRAR) purposes would be specified at 12 per cent to be achieved in three years for all registered deposit-taking and non-deposit-taking NBFCs. 4. NBFCs would be subject to regulations similar to banks while lending to stock brokers and merchant banks and similar to stock brokers, as specified by the Securities and Exchange Board of India (SEBI) a. 1 & 4 b. 2 & 4 c. Only 4 d. Only 1 Ans: d 16. Which Indian PSU bank in tune with its plans to expand its retail division in the UK entered the mortgage market in the country for the first time? a. Punjab National Bank b. Oriental Bank of Commerce c. State bank of India d. Indian Overseas Bank Ans: c 17. Which of the following banks set up two loan processing centres for the small and medium enterprise (SME) segment on a pilot basis in Bangalore & in New Delhi in September 2011?

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a. Corp Bank b. United Bank of India c. Syndicate Bank d. Bank of Baroda Ans: c 18. The government suspended M Ramadoss for alleged violations in issuing insurance cover to an airline during his stint as head of another state-run insurer. To which insurance group did he belong to? a. New India Assurance b. LIC c. GIC d. ICICI Insurance Ans: a 19. Which of the following banks in early May 2011 entered into a tie-up with non-banking finance companies such as Future Capital, Bajaj Finance, and Reliance Capital to grow its retail portfolio? a. Central Bank of India b. State Bank of India c. Bank of India d. HDFC Bank Ans: a 20. Which are the two Gujarat-based cooperative sector lenders on which Reserve bank of India imposed a financial penalty of Rs 1 lakh each for violation of various rules, including anti-money laundering guidelines?

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1. Shree MahalaxmiMercantile Co-operative Bank 2. Rander People's Co-operative Bank 3. Abad District Co Op Bank 4. Ahd Mercantile Co-Op Bank Ltd a. 1 & 2 b. 2 & 3 c. 1 & 4 d. 3 & 4 Ans: (a)

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IBPS CWE GENERAL AWARENESS MODEL PAPER

1.Which of the following statements about new RBi policy on bank loans to non-banking finance companies (NBFCs) is / are correct ? I) Bank loans to NBFCs will not come under 'priority sector' lending II) NBFCs cannot charge a rate of interest higher than the RBI prescribed rate in lending funds borrowed from banks III) The interest margin earned by NBFCs in lending funds borrowed from banks cannot exceed the ceiling prescribed by the RBI 1) I only 2) I and II only 3) II only 4) I and III only 5) None of these 2.Which of the following has proposed the setting up of a National Knowledge Functional Hub (NKFH) to facilitate interaction between the industry and institutions of higher education to produce better quality manpower recently ? 1) National Knowledge Commission 2) CII 3) ASSOCHAM 4) FICCI 5) None of these 3.The Reserve bank of India has increased the amount of money that can be loaded on mobile phones (mobile - wallet) to ..... from the existing limit of Rs. 5,000 recently

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1) Rs. 10,000 2) Rs. 15,000 3) Rs. 25,000 4) Rs. 50,000 5) None of these 4.What are 'structural adjustment programmes'? 1) Programmes to increase the spread of financial services in developing countries 2) Programmes to improve road safety in developing countries 3) Requirements to qualify for World Bank and IMF loans 4) UN building regulations for disaster preparedness 5) None of these 5.Nuclear plants in India have an 'Exclusion Zone' of .... surrounding the power station, in which no habitation is permitted. 1) 1.6 km 2) 4.2 km 3) 8.4 km 4) 11.6 km 5) None of these 6.Improving regulation of which of the following was the subject of the Finance Ministry appointed KP Krishnan Committee ? 1) Microfinance institutions 2) Mutual funds 3) General insurance companies 4) Credit rating agencies 5) None of these

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7. 'Asha' is a low - priced milk food drink introduced for rural consumers by which of the following ? 1) Nestle 2) Cadbury 3) Heinz 4) GlaxoSmithKline 5) None of these 8.ONGC Videsh Ltd (OVL) signed an agreeemtn to acquire 25% stake in the Satpayev oil block in Central Asia recentlyh. Which of the following statements is / are correct ? I) Satpayev s in Turkmenistan II) Satpayev is in Black Sea III) Satpayev is believed to hold 1.75 billion barrels of oil reserves 1) I only 2) I and II only 3) II only 4) III only 5) None of these 9.Which of the following is the new income tax return form for salaried employees introduced by the Finance Ministry recently ? 1) Suvidha 2) Sugam 3) Sahaj 4) Saral 5) None of these

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10.The Commerce Ministry has launched 'Buyer's Credit under the National Export Insurance Account (NEIA)' to : 1) Facilitate foreign direct investment in India 2) Facilitate project exports of Indian companies 3) Facilitate acquisitions by Indian companies overseas 4) Facilitate employment of Indian professionals abroad 5) None of these 11.Which of the following banks has launched 'Tiny Cards' with biometric identification to expand the coverage of banking services in rural parts of the country ? 1) ICICI Bank 2) NABARD 3) State Bank of India 4) Bank of India 5) None of these 12.Which of the following statements about IRDA guidelines for distance marketing of products issued recently is / are correct ? I) Telemarketing of all Unit - Linked Insurance Products (ULIPs) has been disallowed II) Only telemarketers trained by institutes accredited by IRDA can be employed III) All telemarketing calls will have to be recorded 1) I only 2) I and II only 3) I and III only 4) II and III only 5) None of these

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13.The Bureau of Energy Efficiency labelling is compulsory for all of the following except : 1) Laptops 2) Frost-free refrigerators 3) Tubular fluorescent lamps 4) Ceiling fans 5) None of these 14.What is the investment limit in plant and machinery for classification under Small Scale Industries ? 1) Rs. 10 lakh 2) Rs. 50 lakh 3) Rs. 1 crore 4) Rs. 10 crore 5) None of these 15.The government has recently decided to allow FIIs investment in infrastructure bonds upto ..... annually. 1) $5 billion 2) $ 10 billion 3) $ 15 billion 4) $ 25 billion 5) None of these 16.The term ASBA (Applications Supported by Blocked Amount) is used in which of the following financial services ? 1) General Insurance 2) Capital markets

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3) Life Insuracne 4) Micro finance 5) None of these 17.The Government has decided to notify a provision exempting people of salary income up to ..... a year from filing returns 1) Rs. 2 lakh 2) Rs. 2.5 lakh 3) Rs. 4 lakh 4) Rs. 5 lakh 5) None of these 18.Which of the following is the largest mutual fund in India with assets under management (AUM) exceeding Rs. 100,000 crore on March 31, 2011 ? 1) UTI MF 2) HDFC MF 3) Reliance MF 4) birla Sun Life 5) None of these 19.Which of the following identifies and funds social welfare projects under its India Development Marketplace initiative ? 1) IMF 2) USAID 3) Intel 4) World Bank 5) None of these

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20.Which of the following has been set up by the government to fund energy saving technologies recently ? 1) National Renewable Energy Fund 2) National Green Energy Fund 3) National Carbon Reduction Fund 4) National Clean Energy Fund 5) None of these 21.Which of the following is the new income tax return form for small businessmen and self-employed professionals introduced by the Finance Ministry recently ? 1) Suvidha 2) Sugam 3) Sahaj 4) Saral 5) None of these 22.A Committee was constituted to review the functioning fo the Central Economic Intelligence Bureau (CEIB) recently. What is the objective of CEIB ? 1) TO gie suggestions for promoting financial inclusion 2) TO compile data for calculating GDP growth and per capita income 3) To gather data on tax evasion and other financial crimes 4) To assist the RBI in formulating monetary policy 5) None of these 23.Mission Document of the National Water Mission (NWM) was approved byt he Union Cabinet recently. Which of the following

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statements is / are correct ? I) NWM is one of the constituents of the National Action Plan for Climate Change II) Improving share of hydroelectricity in country's total energy production is one of the objective of NWM III) NWM will adjudicate in water sharing disputes involving inter-state rivers 1) I only 2) I and II only 3) I and II only 4) II and III only 5) None of these 24.Which country's 'Zero Kero' LPG programme is being considred for use in India to encourage customers to switch from kerosene to LPG recently ? 1) Thailand 2) Sri Lanka 3) Malaysia 4) Indonesia 5) None of these 25.Which of the folowing was launched by Union Ministry for Youth Affairs and SPorts in association with National Skill Development Corporation (NSDC) at Imphal, Manipur recently? 1) Sports Employability SKill Project 2) Youth Skill Development Project 3) Youth Employability Skill Project 4) Tribal Employability Skill Project

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5) None of these 26. Government has decided to introduce biometric ...... to weed out duplicate and fake ones recently 1) Debit cards 2) Passports 3) Driving licenses 4) PAN cards 5) None of these 27.Which country is the single largest source for foreign direct investment to India, accounting for 40 percent of FDI flows in the last ten years, according to the Reserve bank of India ? 1) USA 2) UK 3) Singapore 4) Mauritius 5) None of these 28.The government plans to set up a Green National Accounting (GNA) system to evaluate impact of economic growth on environment. Who has been selected as the Chairperson of the expert group on GNA ? 1) Parthasarathi Shome 2) Madhav Gadgil 3) Partha Dasgupta 4) B. Ulhas Karanth 5) None of these

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29.Global Assessment Report (GAR) of which of the following has complimented the Government of India for its National Rural Employment Guarantee Act (NREGA) recently ? 1) European Union 2) ILO 3) IMF 4) UN 5) None of these 30. The regulations pertaining to mergers and amalgamations (M & A) were issued by the Competition Commission of India (CCI) on May 12, 2011. Which of the following statements is / are correct ? I) Overseas acquisitions of Indina companies with no impact on the domestic market will not come under the ambit of CCI II) M & A deals that were initiated before June 1, 2011 will not come under the ambit of CCI III) Scrutiny of all M & A deals will be completed by the CCI within 180 calendar days 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 31.Which of then following statements about foreign investment in Limited Liability Partnership (LLP) companies is / are correct ? I) FDI will be allowed in LLPs in sectors like mining, power, roads and highways, manufacturing activities, drugs and pharmaceuticals II) FDI will not be allowed in LLPs engaged in agricultural and

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plantation activities, print media or real estate business III) LLPs have been allowed to access external commercial borrowings 1) I only 2) I and II only 3) II and III only 4) III and I only 5) None of these 32.Which is the first state to introduce e-payment system for commercial tax payers recently ? 1) Maharashtra 2) Uttarakhand 3) Karnataka 4) Madhya Pradesh 5) None of these 33.Which of the following is not among the industries / sectors given priority in natural gas supply in the country ? 1) Fertiliser 2) LPG 3) Steel 4) Power 5) None of these 34.Where was the World Spice Organisation (WSO) set up recently ? 1) Kannur 2) Kochi

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3) Kollam 4) Kottayam 5) None of these 35.Which of the following submitted a report titled 'Social Protection for a Changing India' - a comprehensive review of anti-poverty schemes such as PDS, MGNREGS, RSBY and IAY recently ? 1) World Economic Forum 2) CMIE 3) World Bank 4) IMF 5) None of these 36.Which of the following not one of the objectives of setting up the Warehousing Development and Regulatory Authority ? 1) To improve farm sector yiled 2) To enable farmers to avail of loans against foodgrains stored 3) To reduce post-harvest losses in foodgrain storage 4) To prevent post-harvest distress sales by farmers 5) None of these 37.The government approved the revival of Scooters India Limited (SIL) through induction of a joint venture partner recently. SIL sells scooters under which trademark ? 1) Mayur 2) Bharat 3) Vijay 4) Vikram 5) None of these

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38.The Petroleum Conservation and Research Association (PCRA) has unveiled plans to set up India's first Carbon Credit Aggregation Centre (CCA) in which state ? 1) Himachal Pradesh 2) Uttarakhand 3) Rajasthan 4) Chhattisgarh 5) None of these 39.Which sectors were added to the list of six 'core sector infrastructure industries' recently? I) Water supply II) Natural gas III) Fertilisers 1) I only 2) I and II only 3) II only 4) III and II only 5) None of these 40.Bina Refinery is a joint venture of Bharat Petroleum and ........ Oil Company to set up a 6 MMTPA grass root refinery at Bina in Madhya Pradesh. 1) Shell 2) Qatar 3) Emirates 4) Oman 5) None of these

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41.A high level committee of Bankers submitted its report on Rural Housing recently. Which of the following statements regarding its recommendations for Below the Poverty Line (BPL) Households is / are correct ? I) Allocation of grants for construction of rural housing units for BPL Households should be increased to Rs. 75,000 per dwelling unit II) Repayment period should be reduced to ten years III) BPL households should be provided a loand of Rs. 50,000 at 4% rate of interest 1) II only 2) I and II only 3) II only 4) III and I only 5) None of these 42.'Aichi Targets' refers to which of the following? 1) Trade 2) Education 3) Nuclear safety 4) Environment 5) None of these 43.Scheduled commercial banks do not require permission from the Reserve bank of India for opening new branches in towns with population less than ......... 1) 49,999 2) 99,999 3) 2,49,999

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4) 4,99,999 5) None of these 44.The National Rural Livelihoods Mission (NRLM) was launched recently. Which of the following statements is / are correct ? I) NRLM seeks to bring the rural poor under the Self Help Group (SHG) network II) Services of Business Correspondents (BCs) will be utilised to spread the concept of NRLM III) NLRM will facilitate access of bank credit to those covered under the Mission 1) I only 2) I and II only 3) II and III only 4) I and III only 5) None of these 45.A committee headed by RBI deputy governor Shyamala Gopinath has recommended a 'holding company' structure for both banking and nonbanking financial groups recently. Which of the following statements is / are correct ? I) Both the holding company as well as the subsidiaries can be listed on stock exchange II) The subsidiaries will own equity stake in the holding company 1) II only 2) I and II only 3) I only 4) All of these 5) None of these

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46.Which Indian corporate group has decided to enter the financial services business in a tie up with D.E. Shaw of the US ? 1) AV Birla Group 2) Wipro Ltd 3) Mahindra & Mahindra 4) RIL 5) None of these 47.The Reserve Bank of India (RBI) recently relaxed the eligibility norms for using credit default swaps (CDS) on corporate bonds. What are CDS ? 1) A form of loan that can be taken by pledging shares of a company 2) A form of credit rating that compares companies on their cash flow 3) A form of insurance that protects the lender in case of loand default 4) A form of loan that can be converted into equaity 5) None of these 48.Which of the following statements is /a re correct about Indian Depository Receipts (IDRs) ? 1) They are issued by Indian companies to raise funds from overseas stock markets 2) They are issued by foreign companies to raise funds from Indian stock markets 3) They are denominated in foreign currency 4) None of the above

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5) None of these 49.Which is the first state in the country to sign an agreement with the World Bank for securing carbon credits for its 'Clean Development Mechanism' (CDM) recently ? 1) Sikkim 2) Uttarakhand 3) Jammu Kashmir 4) Himachal Pradesh 5) None of these 50. From which state was the National Rural Livelihood Mission launched recently ? 1) Kerala 2) Maharashtra 3) Haryana 4) Rajasthan 5) None of these ANSWERS: 1) 1 2) 4 3) 4 4) 3 5) 1 6) 4 7) 4 8) 4 9) 3 10) 2 11) 3 12) 4 13) 1 14) 3 15) 4 16) 2 17) 4 18) 3 19) 4 20) 4 21) 2 22) 3 23) 1 24) 4 25) 3 26) 4 27) 4 28) 3 29) 4 30) 4 31) 2 32) 3 33) 3 34) 2 35) 3 36) 1 37) 4 38) 3 39) 4 40) 4 41) 2 42) 4 43) 1 44) 4 45) 2 46) 4 47) 3 48) 2 49)

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4 50) 4

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NABARD signed MoU with All Cooperative Banks in Punjab to Launch Core Banking Solution

National Bank for Agriculture and Rural Development today on 8 April 2011 signed MoU with all cooperative banks in Punjab to launch core banking solution (CBS). Under the pan India project NABARD sought the willingness of State Cooperative Bank (SCB) at the state level as well as District Central Cooperative Banks (DCCBs) at the district level under the Short Term Cooperative Credit Structure (STCCS) to join the project by executing a Memorandum of Understanding (MoU) with NABARD. The project is aimed at providing application software, maintenance of data centre, disaster recovery centre, related network connection and regular maintenance and support of hardware and software. The agreement reached under the project is likely to go a long way to bring the functioning of Cooperative Banks at par with Commercial Banks and Regional Rural Banks in Punjab.

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Indian Bank launched e-banking Lounge & Inter-bank Mobile Payment Services

Indian Bank launched its 24 hour operating e-banking lounge on 11 April 2011 in Chennai. The e-banking lounge was inaugurated by C Rangarajan, Chairman, Prime Minister's Economic Advisory Council. The new service will provide the customers of Indian Bank with the facility of cash deposit, cash withdrawal, cheque deposit with acknowledgement, internet banking, touch screen banking for all account related transactions. Dr. Rangarajan also launched two new tech products namely maestro enabled debit card for senior citizens and inter-bank mobile payment services. The senior citizen debit card will contain details like year of birth, blood group and photo of the senior citizen. Indian Bank has always been keen on introducing innovative, easy to use new tech products for the benefit of all types of customers and the general public. The bank also plans to introduce e-banking lounges in various metros.

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K. S. Sreenivasan appointed non-official director on board of Oriental Bank of Commerce November 23, 2011 The Ministry of Finance (Department of Financial Services) on 27 september 2011 appointed K. S. Sreenivasan as part-time, non-official director on the board of Oriental Bank of Commerce. Sreenivasan has been appointed for a period of three years. He had earlier served on the board of Union Bank of India between 2006 and 2009 and also on the board of Madras School of Economics. Sreenivasan, a practising chartered accountant with nearly 26 years of experience, is also a life member of the Indian Council of Arbitration.

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Fresh Capital to be infused in SBI to help it achieve Compliance with Capital Adequacy Ratio Norms November 23, 2011 Union Finance Minister Pranab Mukherjee on 16 October 2011 voiced the Finance Ministry’s decision to to recapitalise State Bank of India (SBI). Funds would be provided to the PSU lender to enable it to achieve compliance with capital adequacy ratio (CAR) norms. Fresh capital is to be infused in SBI. The government will inject Rs 3,000-4000 crore into SBI during the current fiscal 2011-12 to help it achieve an 8 per cent capital adequacy ratio (CAR). Recapitalisation of banks is a continuing process and the government will continue to provide funds to PSU lenders through the Budget to ensure that they can meet solvency requirements. According to estimates, SBI needs about Rs 20000 crore of fresh capital to maintain the pace of growth without sacrificing solvency margin norms. Moody's had recently downgraded the credit rating of SBI, citing inadequate capital and poor asset quality as reasons. Following the downgrade, major private sector lenders like ICICI Bank, HDFC Bank and Axis Bank currently have a better standing than SBI in terms of their credit rating. The government holds a 59 per cent stake in the country's largest bank, SBI.

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Ratings Firm Moody's downgraded Indian Banking System's Rating outlook from Stable to Negative November 23, 2011 Global ratings firm Moody's on 9 November 2011 downgraded the entire Indian banking system's rating outlook from stable to negative indicating a deterioration in asset quality in the months ahead. In September 2011, Standard & Poor's (S&P) downgraded the country's largest lender, the State Bank of India, by one notch. Arguing its case for the outlook downgrade the Moody's mentioned that with asset quality was anticipated to deteriorate over the next 12-18 months, thereby causing an increase in provisioning needs for the banks in financial year 2012 and 2013. The Moody's decision was announced at a time when the Eurozone financial system is in turmoil and a large number of European banks are in dire straits. The government rejected it claiming that the country's lending institutions are much healthier than their global counterparts. Indian bankers termed the move unwarranted and premature at this point of time. The market apprehended that the downgrade by the Moody's would render overseas borrowings costlier for Indian banks. The negative sentiment sparked a major sell-off in banking stocks, resulting in the banking index on the Bombay Stock Exchange tumbling by 2.62 per cent on 9 November.

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IBPS CWE GENERAL AWARENESS MODEL SOLVED PAPER

1.We often come across the term Production Sharing Contract [PS(3)] in financial news these days. PSC refers to sharing of output with the government by companies, public sector as well private ones, in which sector ? 1) Fertiliser 2) Food processing 3) Telecom 4) Petroleum 5) None of these 2.What is the meant by recent news reports saying – "Indian Rupee is appreciating"? I) THe purchasing power of the Rupee in India has declined II) The exchange rate of Rupee in India has gone up III) The purchasing power of the Rupee in India has gone up 1) I only 2) II only 3) II or III only 4) III only 5) None of these 3.Which state was in news for passing a Bill for regulating Micro Finance Institutions recently? 1) Tamil Nadu 2) Bihar

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3) Karnataka 4) Andhra Pradesh 5) None of these 4.Which of the following has become the first state to sign a MoU with the Ministry of Statistics and Programme Implementation under the state statistical strengthening project (SSSP) that will aim at building statistical capacity and infrastructure recently ? 1) Uttar Pradesh 2) Karnataka 3) Kerala 4) Tamil Nadu 5) None of these 5.The Pension Fund Regulatory and Development Authority (PFRDA) has taken which of the following decisions to popularise the New Pension System (NPS) recently ? 1) It has increased the interest rate on NPS deposits 2) It has allowed premature withdrawals 3) It has increased govt. subsidy for NPS deposit holders 4) It has increased distributors' commission 5) None of these 6.The All India Federation of Horoogical Industries represents the interests of which of the following sectors ? 1) Horticulture 2) Gems & Jewellery 3) Watch 4) Pharmaceuticals

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5) None of these 7.The Ministry of New and Renewable Energy has decided to ti-up with which country to tap the latter's expertise in exploiting geo-thermal energy resources recently ? 1) South Africa 2) Iran 3) Iceland 4) Bolivia 5) None of these 8.Which public sector bank copelted the acquisition JSC Dana Bank of Kazakhstan recently? 1) Dena Bank 2) Canara Bank 3) PNB 4) Bank of India 5) None of these 9. GRIHA rating system is used for which of the following ? 1) Cement 2) NBFCs 3) Buildings 4) Gold 5) None of these 10.The Genetic Engineering Appraisal Committee (GAC) recently gave its approval for field trials of a genetically modified variety of which of the following cash crops ?

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1) Coconut 2) Pepper 3) Cardamom 4) Rubber 5) None of these 11.Which of the following statements is/are correct about the distribution of Central financial assistance to states ? I) Central financial assistance for states is calculated according to the Gadgil Formula II) The highest weightage is given to the per capita income of the state III) The lowest weightage is given to the population of the state 1) I only 2) I and II only 3) II only 4) I and III only 5) None of these 12.Which of the following public sector companies sells gold coins and silver ornaments under the trademark 'Sanchi'? 1) Rare Earths Ltd 2) State Trading Corporation (STC) 3) National Mineral Development Corporation (NMDC) 4) Minerals and Metals Trading Corporation (MMTC) 5) None of these 13.Power produced from which of the following sources has the highest share in India's annual power generation capacity ?

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1) Hydro 2) Coal 3) Gas 4) Nuclear 5) None of these 14.What is the share of private expenditure on health in the total health expenditure in India according to the World Health Report of the World Health Organisation released recently? 1) 12% 2) 37% 3) 46% 4) 72% 5) None of these 15.BHAVINI is a public sector company in which sector ? 1) Shipping 2) Metals trading 3) Space 4) Nuclear energy 5) None of these 16.Which of the following statements about the Indian Economy in 2050 as per a recent report by Pricewaterhouse Coopers (Pwc) is / are correct ? I) India's GDP in Market Exchange Rate (MER) terms will be the fourth highest in the world in 2050 II) India's GDP in Purchasing Power Parity (PPP) terms is the second highest in the world in 2050

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III) Only China will be ahead of India in both MER and PPP terms in 2050 1) I only 2) I and II only 3) II only 4) II and III only 5) None of these 17.Which of the following are not listed on stock exchanges in India ? 1) Fertiliser companies 2) NBFCs 3) Insurance companies 4) Airlines 5) None of these 18.What should be the minimum share of solar energy in states' total power purchases by 2022 as per the amendment in power tariff policy recently ? 1) 1% 2) 2% 3) 3% 4) 4% 5) None of these 19.Which of the following statements about FDI in retail sector is / are correct ? I) 100 per cent FDI is permitted in cold chain through the automatic route.

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II) Up to 33 per cent FDI is permitted in single brand retail III) 100 per cent FDI is permitted in wholesale cash and carry 1) I only 2) I and II only 3) II only 4) III and I only 5) None of these 20.Which of the following pairs of large banks and their countries of origin is / are correctly matched ? I) JPM organ Chase - Britain II) ING Group - Netherlands III) Standard Bank - South Africa 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 21.Which of the following statements about exicise duty on cotton and man - made (synthetic) fibres is / are correct ? I) Man - made (synthetic) fibres attract a higher excise duty than cotton fibres II) Man-made (synthetic) fibres attract lower excise duty than cotton fibres III) No excise duty is levied on cotton fibres 1) I only 2) II only 3) I and III only

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4) III only 5) None of these 22.The Bombay Stock Exchange launched the BSE TASIS Shariah 50 - a stock index that is compliant with Shariah - recently. The Index cannot invest in shares of companies in which of the following sectors ? I) Banking II) Cement & Steel III) Alcohol & tobacco products 1) I only 2) I and II only 3) III only 4) I and III only 5) None of these 23.Which of the following has launched the 'Bank on Bike' initiative to cover villages untouched by banking facilities so far recently ? 1) Bank of India 2) Bank of Baroda 3) Central Bank of India 4) SBI 5) None of these 24.Which of the following has decided to enter the nuclear power sector following an agreement with the Nuclear Power Corporation recently ? 1) Tata Power 2) NHPC

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3) Indian Oil 4) ONGC 5) None of these

25.Which of the following pairs of India's public sector banks and their headquarters are correctly matched ? I) Punjab National Bank - New Delhi II) Allahabad bank – Kolkata III) Bank of India - Mumbai 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 26.The tax on short - term capital inflows is named after which Nobel Laureate in economics ? 1) Gary Becker 2) james M. Buchanan 3) James Tobin 4) Myron Scholes 5) None of these 27. The term 'round - tripping' often appears in financial news these days. What does it mena? 1) Importing products that are not easily available in the domestic markes 2) Indian companies re-exporting imported products without any

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value addtion 3) Brining back illicit money hiddern aborad by Indians under a different name 4) Imposing high customs duty to discourage dumping of goods in Indian market 5) None of these 28.Infant Mortality Rate (IMR) data for high focus states (states where IMR is above national average) is collected once every five years. The Union Health Ministry has now decided to collect such data ....... 1) half yearly 2) annually 3) once every two years 4) once every three years 5) None of these 29.Which country's gold output of 340.88 tonnes was the highest in the world in 2010 ? 1) Canada 2) South Africa 3) China 4) USA 5) None of these 30.Which of the following became the first oil & gas company to find shale gas deposits in India recently ? 1) Reliance Industries Ltd. 2) Cairn India

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3) Essar Oil 4) ONGC 5) None of these 31.'Anushakti Vidhyut Nigam Ltd' was incorporated as a joint venture between Nuclear Power Corporation of India Ltd and which of the following recently ? 1) NMDC 2) NHPC 3) BEL 4) NTPC 5) None of these 32.Which of the following was founded in 1956 by the Government of India with funding from the Ford Foundation ? 1) National Institute of Public FInance and Policy 2) National Institute of Bank Management 3) National Institute of Findnancial Management 4) National Council of Applied Economic Research 5) None of these 33.China emerged as the world's second largest economy in 2010 overtaking ...... 1) France 2) Britain 3) Germany 4) Japan 5) None of these

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34.CARINGS has been launched by Ministry of Womena nd Child Development to : 1) improve gender parity 2) reduce infant mortality 3) improve child immunisation 4) facilitate adoption 5) None of these 35.The Union Cabinet has approved amendments in the Coinage Bill 2009 that seeks to amalgamate four existing Acts relating to coinage recently. Which of the following Acts is the oldest ? 1) The Indian Coinage Act 2) The Small Coins (Offences) Act 3) The Metal Token Act 4) The Bronze Coin (Legal Tender) Act 5) None of these 36.Which of the following is not a hedge fund ? 1) Magellan 2) Hibhbridge 3) Gartner 4) D.E. Shaw 5) None of these 37.Preferred Provder Network (PPN) is a term used n which of the following businesses ? 1) Commodities trading 2) Retailing 3) Health insurance

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4) Foreign trade 5) None of these 38.Which of the following has introduced a new tool named Data Ware Housing and Business Intelligence System (DWBIS) for speedy analysis of data and identification of violations? 1) IRDA 2) SEBI 3) RBI 4) TRAI 5) None of these 39.The government has introduced three new consumer price indices – CPI (Rural), CPI (Urban) & CPI (Combined) – with 2010 as the base year recently. Which of the following is not among the five major commodity groups covered in the indics ? 1) Food, beverages and tobacco 2) Fuel and light 3) Education and schooling 4) Housing 5) None of these 40.Which of the following has launched the 'Everywhere Teller Machine' (ETM) in India ? 1) Stanchart Bank 2) HDFC Bank 3) SBI 4) Axis Bank 5) None of these

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41.Regional Rural Banks (RRBs) are owned b : I) Their Sponsor Bank II) Government of the state where they are located III) Union government 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 42.'Easy Exit Scheme 2011' floated by the Ministry of Corporate Affairs refers to which of the following ? 1) Privatisation of loss-making public sector companies 2) Removal of names of defunct companies from the Registrar of Companies 3) Closure of loss-making industries after paying off creditors 4) Removal of SEZ status for companies not fulfilling export obligations 5) None of these 43.What is the financial inclusion campaign lacunched by the government to bring banking services to vast unbanked rural areas in the country recently named ? 1) Swawlamban 2) Swatantra 3) Swadhar 4) Swabhiman 5) None of these

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44.Whch of the following statements about India's population and surface area is are correct as per the provisional figures of Census 2011 ? I) India accounts for 2.4 percent of the world surface area II) India sustains 17.5 percent of the world population III) Population density has increased between 2001 and 2011 1) I only 2) I and II only 3) III and I only 4) I, II and III 5) None of these 45.According to the RBI, branches serving population of ........ and above are classified as Metropolitan branches 1) 5 lakh 2) 10 lakh 3) 25 lakh 4) 50 lakh 5) None of these 46.Which state government has announced introduction of 'Vanita Family Card' for below poverty line families that will enable them travel in road transport corporation buses at concessional fares recently ? 1) Karnataka 2) Tamil Nadu 3) Maharashtra 4) Andhra Pradesh

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5) None of these 47.'French Auction' is a term used in which of the following sectors of financial services ? 1) Banking 2) Insurance 3) Capital markets 4) Micro-finance 5) None of these 48.The department of industrial policy and promotion (DPP) is promoting NMIZs to improve the spread of industrilisation in the country. NMIZ refers to which of the following ? 1) New Manufacturing and Investment Zones 2) National Medium Industry Zones 3) National Manufacturing Industry Zones 4) National Manufacturing and Investment Zones 5) None of these 49.Which state / union territory has the lowest literacy rate as per provisional figures of Census 2011 ? 1) Orissa 2) Mizoram 3) Bihar 4) Rajasthan 5) None of these 50.The Department of Industrial Poliyc and Promotion announced changes in FDi policy recently. Which of the following statements is

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/ are correct ? I) Indian companies have been allowe to convert foreign debt into equity II) Indian companies have been allowed to issue equity to fund imports of machinery and capital goods III) 51 per cent FDI is currently allowed in multi-branch retail trade 1) I only 2) I and II only 3) II and III only 4) III and I only 5) None of these ANSWERS: 1) 4 2) 2 3) 4 4) 2 5) 4 6) 3 7) 3 8) 3 9) 3 10) 4 11) 1 12) 4 13) 2 14) 4 15) 4 16) 4 17) 3 18) 3 19) 4 20) 3 21) 3 22) 4 23) 4 24) 3 25) 4 26) 3 27) 3 28) 2 29) 3 30) 4 31) 4 32) 4 33) 4 34) 4 35) 3 36) 3 37) 3 38) 2 39) 3 40) 4 41) 4 42) 2 43) 4 44) 4 45) 2 46) 4 47) 3 48) 4 49) 3 50) 2

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IBPS CWE GENERAL AWARENESS MODEL SOLVED PAPER

1. We often come across the term Production Sharing Contract [PS(3)] in financial news these days. PSC refers to sharing of output with the government by companies, public sector as well private ones, in which sector ? 1) Fertiliser 2) Food processing 3) Telecom 4) Petroleum 5) None of these 2.What is the meant by recent news reports saying – "Indian Rupee is appreciating"? I) THe purchasing power of the Rupee in India has declined II) The exchange rate of Rupee in India has gone up III) The purchasing power of the Rupee in India has gone up 1) I only 2) II only 3) II or III only 4) III only 5) None of these 3.Which state was in news for passing a Bill for regulating Micro Finance Institutions recently? 1) Tamil Nadu 2) Bihar

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3) Karnataka 4) Andhra Pradesh 5) None of these 4.Which of the following has become the first state to sign a MoU with the Ministry of Statistics and Programme Implementation under the state statistical strengthening project (SSSP) that will aim at building statistical capacity and infrastructure recently ? 1) Uttar Pradesh 2) Karnataka 3) Kerala 4) Tamil Nadu 5) None of these 5.The Pension Fund Regulatory and Development Authority (PFRDA) has taken which of the following decisions to popularise the New Pension System (NPS) recently ? 1) It has increased the interest rate on NPS deposits 2) It has allowed premature withdrawals 3) It has increased govt. subsidy for NPS deposit holders 4) It has increased distributors' commission 5) None of these 6.The All India Federation of Horoogical Industries represents the interests of which of the following sectors ? 1) Horticulture 2) Gems & Jewellery 3) Watch 4) Pharmaceuticals

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5) None of these 7.The Ministry of New and Renewable Energy has decided to ti-up with which country to tap the latter's expertise in exploiting geo-thermal energy resources recently ? 1) South Africa 2) Iran 3) Iceland 4) Bolivia 5) None of these 8.Which public sector bank copelted the acquisition JSC Dana Bank of Kazakhstan recently? 1) Dena Bank 2) Canara Bank 3) PNB 4) Bank of India 5) None of these 9.GRIHA rating system is used for which of the following ? 1) Cement 2) NBFCs 3) Buildings 4) Gold 5) None of these 10.The Genetic Engineering Appraisal Committee (GAC) recently gave its approval for field trials of a genetically modified variety of which of the following cash crops ?

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1) Coconut 2) Pepper 3) Cardamom 4) Rubber 5) None of these 11.Which of the following statements is/are correct about the distribution of Central financial assistance to states ? I) Central financial assistance for states is calculated according to the Gadgil Formula II) The highest weightage is given to the per capita income of the state III) The lowest weightage is given to the population of the state 1) I only 2) I and II only 3) II only 4) I and III only 5) None of these 12.Which of the following public sector companies sells gold coins and silver ornaments under the trademark 'Sanchi'? 1) Rare Earths Ltd 2) State Trading Corporation (STC) 3) National Mineral Development Corporation (NMDC) 4) Minerals and Metals Trading Corporation (MMTC) 5) None of these 13.Power produced from which of the following sources has the highest share in India's annual power generation capacity ?

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1) Hydro 2) Coal 3) Gas 4) Nuclear 5) None of these 14.What is the share of private expenditure on health in the total health expenditure in India according to the World Health Report of the World Health Organisation released recently? 1) 12% 2) 37% 3) 46% 4) 72% 5) None of these 15.BHAVINI is a public sector company in which sector ? 1) Shipping 2) Metals trading 3) Space 4) Nuclear energy 5) None of these 16.Which of the following statements about the Indian Economy in 2050 as per a recent report by Pricewaterhouse Coopers (Pwc) is / are correct ? I) India's GDP in Market Exchange Rate (MER) terms will be the fourth highest in the world in 2050 II) India's GDP in Purchasing Power Parity (PPP) terms is the second highest in the world in 2050

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III) Only China will be ahead of India in both MER and PPP terms in 2050 1) I only 2) I and II only 3) II only 4) II and III only 5) None of these 17.Which of the following are not listed on stock exchanges in India ? 1) Fertiliser companies 2) NBFCs 3) Insurance companies 4) Airlines 5) None of these 18.What should be the minimum share of solar energy in states' total power purchases by 2022 as per the amendment in power tariff policy recently ? 1) 1% 2) 2% 3) 3% 4) 4% 5) None of these 19.Which of the following statements about FDI in retail sector is / are correct ? I) 100 per cent FDI is permitted in cold chain through the automatic route.

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II) Up to 33 per cent FDI is permitted in single brand retail III) 100 per cent FDI is permitted in wholesale cash and carry 1) I only 2) I and II only 3) II only 4) III and I only 5) None of these 20.Which of the following pairs of large banks and their countries of origin is / are correctly matched ? I) JPM organ Chase - Britain II) ING Group - Netherlands III) Standard Bank - South Africa 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 21.Which of the following statements about exicise duty on cotton and man - made (synthetic) fibres is / are correct ? I) Man - made (synthetic) fibres attract a higher excise duty than cotton fibres II) Man-made (synthetic) fibres attract lower excise duty than cotton fibres III) No excise duty is levied on cotton fibres 1) I only 2) II only 3) I and III only

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4) III only 5) None of these 22.The Bombay Stock Exchange launched the BSE TASIS Shariah 50 - a stock index that is compliant with Shariah - recently. The Index cannot invest in shares of companies in which of the following sectors ? I) Banking II) Cement & Steel III) Alcohol & tobacco products 1) I only 2) I and II only 3) III only 4) I and III only 5) None of these 23.Which of the following has launched the 'Bank on Bike' initiative to cover villages untouched by banking facilities so far recently ? 1) Bank of India 2) Bank of Baroda 3) Central Bank of India 4) SBI 5) None of these 24.Which of the following has decided to enter the nuclear power sector following an agreement with the Nuclear Power Corporation recently ? 1) Tata Power 2) NHPC

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3) Indian Oil 4) ONGC 5) None of these 25. Which of the following pairs of India's public sector banks and their headquarters are correctly matched ? I) Punjab National Bank - New Delhi II) Allahabad bank – Kolkata III) Bank of India - Mumbai 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 26.The tax on short - term capital inflows is named after which Nobel Laureate in economics ? 1) Gary Becker 2) james M. Buchanan 3) James Tobin 4) Myron Scholes 5) None of these 27.The term 'round - tripping' often appears in financial news these days. What does it mena? 1) Importing products that are not easily available in the domestic markes 2) Indian companies re-exporting imported products without any value addtion

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3) Brining back illicit money hiddern aborad by Indians under a different name 4) Imposing high customs duty to discourage dumping of goods in Indian market 5) None of these 28.Infant Mortality Rate (IMR) data for high focus states (states where IMR is above national average) is collected once every five years. The Union Health Ministry has now decided to collect such data ....... 1) half yearly 2) annually 3) once every two years 4) once every three years 5) None of these 29.Which country's gold output of 340.88 tonnes was the highest in the world in 2010 ? 1) Canada 2) South Africa 3) China 4) USA 5) None of these 30.Which of the following became the first oil & gas company to find shale gas deposits in India recently ? 1) Reliance Industries Ltd. 2) Cairn India 3) Essar Oil

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4) ONGC 5) None of these 31.'Anushakti Vidhyut Nigam Ltd' was incorporated as a joint venture between Nuclear Power Corporation of India Ltd and which of the following recently ? 1) NMDC 2) NHPC 3) BEL 4) NTPC 5) None of these 32.Which of the following was founded in 1956 by the Government of India with funding from the Ford Foundation ? 1) National Institute of Public FInance and Policy 2) National Institute of Bank Management 3) National Institute of Findnancial Management 4) National Council of Applied Economic Research 5) None of these 33.China emerged as the world's second largest economy in 2010 overtaking ...... 1) France 2) Britain 3) Germany 4) Japan 5) None of these 34.CARINGS has been launched by Ministry of Womena nd Child

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Development to : 1) improve gender parity 2) reduce infant mortality 3) improve child immunisation 4) facilitate adoption 5) None of these 35.The Union Cabinet has approved amendments in the Coinage Bill 2009 that seeks to amalgamate four existing Acts relating to coinage recently. Which of the following Acts is the oldest ? 1) The Indian Coinage Act 2) The Small Coins (Offences) Act 3) The Metal Token Act 4) The Bronze Coin (Legal Tender) Act 5) None of these 36.Which of the following is not a hedge fund ? 1) Magellan 2) Hibhbridge 3) Gartner 4) D.E. Shaw 5) None of these 37.Preferred Provder Network (PPN) is a term used n which of the following businesses ? 1) Commodities trading 2) Retailing 3) Health insurance 4) Foreign trade

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5) None of these 38.Which of the following has introduced a new tool named Data Ware Housing and Business Intelligence System (DWBIS) for speedy analysis of data and identification of violations? 1) IRDA 2) SEBI 3) RBI 4) TRAI 5) None of these 39.The government has introduced three new consumer price indices – CPI (Rural), CPI (Urban) & CPI (Combined) – with 2010 as the base year recently. Which of the following is not among the five major commodity groups covered in the indics ? 1) Food, beverages and tobacco 2) Fuel and light 3) Education and schooling 4) Housing 5) None of these 40.Which of the following has launched the 'Everywhere Teller Machine' (ETM) in India ? 1) Stanchart Bank 2) HDFC Bank 3) SBI 4) Axis Bank 5) None of these

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41.Regional Rural Banks (RRBs) are owned b : I) Their Sponsor Bank II) Government of the state where they are located III) Union government 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 42.'Easy Exit Scheme 2011' floated by the Ministry of Corporate Affairs refers to which of the following ? 1) Privatisation of loss-making public sector companies 2) Removal of names of defunct companies from the Registrar of Companies 3) Closure of loss-making industries after paying off creditors 4) Removal of SEZ status for companies not fulfilling export obligations 5) None of these 43.What is the financial inclusion campaign lacunched by the government to bring banking services to vast unbanked rural areas in the country recently named ? 1) Swawlamban 2) Swatantra 3) Swadhar 4) Swabhiman 5) None of these

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44.Whch of the following statements about India's population and surface area is are correct as per the provisional figures of Census 2011 ? I) India accounts for 2.4 percent of the world surface area II) India sustains 17.5 percent of the world population III) Population density has increased between 2001 and 2011 1) I only 2) I and II only 3) III and I only 4) I, II and III 5) None of these 45.According to the RBI, branches serving population of ........ and above are classified as Metropolitan branches 1) 5 lakh 2) 10 lakh 3) 25 lakh 5) 50 lakh 5) None of these 46.Which state government has announced introduction of 'Vanita Family Card' for below poverty line families that will enable them travel in road transport corporation buses at concessional fares recently ? 1) Karnataka 2) Tamil Nadu 3) Maharashtra 4) Andhra Pradesh 5) None of these

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47.'French Auction' is a term used in which of the following sectors of financial services ? 1) Banking 2) Insurance 3) Capital markets 4) Micro-finance 5) None of these 48.The department of industrial policy and promotion (DPP) is promoting NMIZs to improve the spread of industrilisation in the country. NMIZ refers to which of the following ? 1) New Manufacturing and Investment Zones 2) National Medium Industry Zones 3) National Manufacturing Industry Zones 4) National Manufacturing and Investment Zones 5) None of these 49.Which state / union territory has the lowest literacy rate as per provisional figures of Census 2011 ? 1) Orissa 2) Mizoram 3) Bihar 4) Rajasthan 5) None of these 50.The Department of Industrial Poliyc and Promotion announced changes in FDi policy recently. Which of the following statements is / are correct ?

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I) Indian companies have been allowe to convert foreign debt into equity II) Indian companies have been allowed to issue equity to fund imports of machinery and capital goods III) 51 per cent FDI is currently allowed in multi-branch retail trade 1) I only 2) I and II only 3) II and III only 4) III and I only 5) None of these ANSWERS: 1) 4 2) 2 3) 4 4) 2 5) 4 6) 3 11) 1 12) 4 13) 2 14) 4 15) 4 20) 3 21) 3 22) 4 23) 4 24) 3 29) 3 30) 4 31) 4 32) 4 33) 4 34) 4 39) 3 40) 4 41) 4 42) 2 43) 4 44) 4 45) 2 3 50) 2

7) 3 8) 3 9) 3 10) 4 16) 4 17) 3 18) 3 19) 4 25) 4 26) 3 27) 3 28) 2 35) 3 36) 3 37) 3 38) 2 46) 4 47) 3 48) 4 49)

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IBPS CLERKS GENREAL AWARENESS MODEL PAPER

1.Cairo Programme of Action (POA) refers to which of the following ? 1) Vaccination 2) Adult literacy 3) Food security 4) Population control 5) None of these 2.Justice Wadhwa Committee is reviewing the functioning of which of the following ? 1) Mid-day meal programme 2) Rashtriya Swasthaya Bima Yojna 3) Public Distribution System 4) Public Distribution System 5) None of these 3.What is the objective of the Central Registry launched under the provisions of the SARFAESI Act 2002, recently ? 1) To preent leakage of funds in delivery of central government sponsored rural emloyment sches 2) To prevent tax evasion by Indians by keeping track of large transactions in the banking system 3) To prevent frauds in loan cases involving multiple lending from different banks on the same asset 4) To ensure timely delivery of agricultural credit under priority sector norms by public sector banks

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5) None of these 4. What is the objective of the National Mission for Electric Mobility launched recently ? 1) Promoting the use of energy saving devices 2) Promoting the replaement of diesel by electric locomotives in Indian Railways 3) Promoting spread of mob ile services in rural areas 4) Promoting the use of battery operated vehicles 5) None of these 5.What is the objective of India Smart Grid Forum (ISGF) ? 1) To promote R 7 D collaboration between universities and industry 2) To promote the use of non - renewable sources of energy 3) To promote higher education using broadband 4) TO promote energy effeciency in power sector 5) None of these 6.Which of the following became India's first bank to facilitate payment of income tax using ATMs recently ? 1) State Bank of India 2) Punjab National Bank 3) Canara Bank 4) Union Bank of India 5) None of these 7.Which of the following has / have been selected as the sole fund manager by the Employees Provident Fund Organisation (EPFO) to manage its corpus of about Rs 3.5 lakh crore recetly ?

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1) State bank of India 2) ICICI Prudential 3) HSBC 4) Reliance Capital 5) None of these 8.Rabobank has received the Reserve Bank of India approval to set up its first branch in India recently. It is a bank headquartered in which country ? 1) France 2) Belgium 3) Britain 4) Netherlands 5) None of these 9.The government has approved the creation of posts of 'Indirect Tax Ombudsmen' in several cities recently. Which of the following statements about is / are correct ? I) It will be set up in seven cities II) It will examine public complaints on income tax matters III) It will have the powers to give settle claims and give awards" to the aggrieved parties 1) I only 2) II and III only 3) II only 4) III and I only 5) None of these 10.What does 'remittances', a word we often come across in articles

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on foreign exchange reserves in newspapers, refer to ? 1) Postponement of paymnets to the IMF 2) Money transfer by amigrant worker to their home country 3) Donation by individuals to a chartiy 4) Taxation obligation of developing countries 5) None of these 11.Which state has launched the 'Jeevandhara' programme to provide quality medicines at affordable prices to the poor recently ? 1) Andhra Pradesh 2) Maharashtra 3) Rajasthan 4) Gujarat 5) None of these 12.The abbreviation 'EAG states' mentioned in the Census 2011 refers to which of the following? 1) Eligible Action Group States 2) Economically Advancing Group States 3) Empowered Action Group States 4) Empowered Advancing Group States 5) None of these 13. Which of the following had the highest share of bank credit (occupation - wise) as on March 31, 2009 according to a RBI report released recently ? 1) Agriculture 2) Industry 3) Trade

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4) Transport Operators 5) None of these 14.Which of the following statements is / are correct about the Pension Fund Regulatory and Development Authority (PFRD) (1) Bill introduced in Lok Sabha ? I) The Bill gives statutory status to interim pension regulator II) The Bill was supported by Left Parties III) The Bill was supported by the BJP 1) I only 2) I and II only 3) II and III only 4) III and I only 5) None of these 15.The Banking Laws (amendment) Bill 2011 was tabled in Parliament recently. Which of the following statements is / are correct as per current policy ? I) Nationalised banks cannot issue bonus shares II) Nationalised banks can raise capital through rights issues III) Nationalised banks cannot issue preference shares 1) I only 2) I and II only 3) II only 4) III and I only 5) None of these 16.The government has tabled a Constitution Amendment Bill on the Goods and Services Tax (GST) in Parliament recently. WHich of

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the following statements is /a re correct ? I) GST will replace many taxes levived at the Centre, including excise duty and service tax II) GST will replace many taxes levied at the state level, including sales tax and entertainment tax III) Currently states are not allowed to tax sale of goods, while the Centre cannot tax services 1) I only 2) I and II only 3) II only 4) III and II only 5) None of these 17. The Banking Laws (amendment) Bill 2011 was tabled in Parliaent recently. Which of the following statements is / are correct as per current policy ? 1) At present promoters and shareholders of private banks cannot exercise voting rights in proportion to their shareholding II) Voting rights of a non - governments shareholder in nationalised banks cannot exceed 5% irrespective of the size of his shareholding III) Voting rights of a shareholder in private sector banks cannot exceed 10% irrespective of the size of his shareholding 1) I only 2) I and II only 3) II only 4) III and I only 5) None of these 18.What is the FDi limit in the insurance sector in India ?

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1) 11% 2) 26% 3) 49% 4) 51% 5) None of these 19.Which of the following is launchign 'Rupay' as a domestic alternative to the global real-time payment processing firms like Visa, MasterCard? 1) CCA venue Payment Gateway 2) PayPal Corporation of India 3) Industrial Financial Corporation of India 4) National Payments Corporation of India 5) None of these 20. Export of which of the following crop is / are allowed currently ? 1) Wheat 2) Non-Basmati rice 3) Sugar 4) Pulses 5) None of these 21.Which of the following is the oil exploration & production company operating in Siberia and owned by the ONGC ? 1) Venture Production 2) Regarl Petroleum 3) Enterprise Oil 4) Imperial Energy 5) None of these

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22. The government has decided provide equity support to public sector banks (PSBs) to raise its holding to ......... 1) 55% 2) 58% 3) 62% 4) 68% 5) None of these 23.Which of the following is / are not covered under the compulsory labelling programme of the Bureau of Energy Efficiency (BEE) ? 1) Air conditioners 2) Refrigerators 3) Geysers 4) Distribution transformers 5) None of these 24. Which foreign bank publishes the monthly Purchasing Managers' Index (PMI) that measures the health of manufacturing sector in India and is based on a survey of top 500 companies ? 1) Barclays 2) HSBC 3) Stanchart Bank 4) Citi Bank 5) None of these 25. Which of the following has become the first state in the country to announce a monthly allowance to unemployed under-graduates recently ?

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1) Karnataka 2) Rajasthan 3) Goa 4) Maharashtra 5) None of these 26. How many commercial banks are functioning in India as per the 'Statistical Tables Relating To Banks in India 2009-10 unveiled by the RBI in March 2011 ? 1) 135 2) 167 3) 193 4) 256 5) None of these 27.The Rashtriya Krishi Vikas Yojana (RKVY) will be implemented in the coming year (2011 - 12) with a budget of Rs. 7860 crore and nine sub - schemes. Which of the following sub-scheme refers to livestock development, dairy farming and fisheries ? 1) Rainfed Area Development Programme 2) National Mission for Protein Supplements 3) Promotion of Oil Palm 4) Accelerated Fodder Development Programme 5) None of these 28. What was the share of priority sector lending in lending by commercial banks as on March 31, 2010 as per the 'Statistical Tables Relating to Banks in India 2009-10' report univeiled by the RBI recently ?

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1) 16% 2) 24% 3) 31% 4) 36% 5) None of these 29. Under the current merger & acquisition policy, any deal involving acquisition of ..... or more in a listed company requires the acquirer to make an open offer for buying at least ....... stake from public shareholders. 1) 5 per cent, 10 per cent 2) 10 per cent, 15 per cent 3) 15 per cent, 20 per cent 4) 20 per cent, 25 per cent 5) None of these 30.Pradhan Mantri Adarsh Gram Yojana (PMAGY) is for the integrated development of which of the following category of villages ? 1) Villages where SCs comprise more than 25% of population 2) Villages where SCs & STs comprise more than 50% of population 3) Villages where STs comprise more than 25% of population 4) Villages where SCs comprise more than 50% of population 5) None of these 31. How much as the requirement of water for irrigation in India as per a recent assessment by the National Commission for Integrated Water Resources Development (NCIWRD) ?

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1) 4000 billion cubic meters (BCM) 2) 1869 BCM 3) 1123 BCM 4) 557 BCM 5) None of these 32.Which foreign bank has the highest number of employees in India ? 1) HSBC 2) Royal Bank of Scotland (RBS) 3) Standard Chartered Bank 4) Citibank 5) None of these 33.Which of the following statements about solvency ratio in the insurance sector is /are correct? I) IRDA has directed general insurance companies to increase their solvency ratios for vehicle insurance II) A high solvency ratio indicats lower probability of default III) A higher solvency ratio indicates better financial health of the insurance company 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 34. Which of the following regions had the highest number of bank branches in the country as per the 'Statistical Tables Relating to

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Banks in India 2009-10' unveiled by the RBI recently? 1) Rural 2) Semi-Urban 3) Urban 4) Metropolitan 5) None of these 35.Which state has the highest number of commercial bank branches in India as on March 31, 2010 as per the 'Statistical Tables Relating to Banks in India 2009-10' report unveiled by the RBI recently ? 1) UP 2) Maharashtra 3) Andhra Pradesh 4) Tamil nadu 5) None of these 36. Which of the following does not come under the definition of Scheduled Commercial Banks in India ? 1) Scheduled State Co - operative Banks 2) cheduled Urban Co - operative Banks 3) REgional Rural Banks 4) None of the above 5) None of these 37.Which of the following is / are implementing the Traditional Knowledge Digital Library (TKDL) project ? I) Ministry of Science and Technology II) Council of Scientific and Industrial Research

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III) Ministry of Health and Family Welfare 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 38. What ws the poverty rate in 2009-10 according to recent estimates by Planning Commission ? 1) 28% 2) 30% 3) 32% 4) 34% 5) None of these 39.Which of the following statements about demand and supply of petroleum products in India is / are correct ? I) India's current petroleum refining capacity is 240 million tonnes per annum (MTPa) II) India's demand for the petroleum products is less than its refining capacity III) Further addition in refining capacity is likely to boost country's exports of petroleum products 1) I only 2) I and II ony 3) II and III only 4) III and I only 5) None of these

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40. Which of the following has launched the 'Trans Union Score' that will indicate credit worthiness of consumers applying for loans from banks ? 1) Experian Credit Information Co 2) Indian Credit Rating Agency 3) Credit Information Bureau Ltd 4) Euifax Information Services 5) None of these 41. Which bank has announced an end to its 'teaser' home loan scheme recently ? 1) Bank of India 2) HDFC Bank 3) Union Bank 4) State Bank of India 5) None of these 42.The government has decided to set up an inter-ministerial group chaired by Planning Commission member Arun Maira to examine the ssue of imposing restrictions on FDI in pharmaceutical industry. How much FDI is permitted currently ? 1) 33% 2) 49% 3) 51% 4) 100% 5) None of these 43. Which of the following is the criterion for allocation of foodgrains under the Public Distribution System (PDS) to below poverty line

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(BPL) families ? 1) Same quantity of foodgrains is given to every BPL family 2) The quantity of foodgrains given depends on the number of members in the BPL family 3) The quantty of foodgrains given depends on the annual income of the BPL family 4) Both (2) & (3) 5) None of these 44.How much was the net Foreign Institutional Investor (FII) investment in Indian stock markets in 2010-11 acording to SEBI ? 1) Rs. 0.76 lakh crores 2) Rs. 0.95 lakh crore 3) Rs. 1.17 lakh crore 4) Rs. 1.46 lakh crore 5) None of these 45.The government has launched 'Service Discharge Benefit Scheme' for over 2.7 lakh employees of which organisation recently ? 1) Department of Telecom 2) Indian Army 3) Department of Posts 4) Indian Railways 5) None of these 46. Accredited Social Health Activists (ASHAs) In which state are known as 'Mitanins' ? 1) Jharkhand

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2) Rajasthan 3) Orissa 4) Chhattisgarh 5) None of these 47. 'Health and Wellness Tourism – Advantage India', a study that offers a 10 - point prescription to boost health and wellness tourism in India, is a joint initiative of YES Bank and .... 1) MCI 2) IMA 3) FICCI 4) CII 5) None of these 48. Kimberley Process certificates are compulsory for for trade in which of the following ? 1) Gold 2) Diamonds 3) Radioactive materials 4) All the above 5) None of these 49. The Ministry of Statistics 7 Programme Implementation recently decided to allow MPs to spend a maximum of Rs. 10.00 lakhs per year from their MPLAD funds for : 1) creating awareness about social welfare schemes of the government 2) building sports facilites in their constitutencies 3) rehabilitation of those affected by natural calamities

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4) giving assistance to the physically challenged in their constitutencies 5) None of these 50. The Foreign Contribution Regulation Act (FCRa) 2010 came into effect from May 1, 2011. Which of the following statements is / are correct ? I) 'Organisations of political nature' can receive foreign funds only after prior clearances from the government II) Organisations that receive foreign funds will have to renew their registration once every three years III) Banks will have to immediately report to the government about all foreign funds exceeding Rs. 10 lakh 1) I only 2) I and II only 3) II only 4) III only 5) None of these ANSWERS: 1) 4 2) 4 3) 3 4) 4 5) 4 1 11) 1 12) 3 13) 2 14) 4 4 20) 3 21) 4 22) 2 23) 3 24) 2 3 30) 4 31) 4 32) 3 33) 4 34) 1 40) 3 41) 4 42) 4 43) 1 44) 4

6) 4

7) 1 8) 4 9) 4 10)

15) 4 16) 2 17) 4 18) 2

19)

25) 3 26) 2 27) 2 28) 3 29) 35) 1 36) 4 37) 4 38) 3 39) 3 45) 3 46) 4 47) 3 48) 2

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49)

4 50) 4

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IBPS BANKING AWARENESS PRACTICE MODEL PAPER

1. From which state was the Janani 0 Shishu Suraksha Karyakram (JSSK) of the Ministry of Health and Family Welfare launched recently ? 1) Kerala 2) Maharashtra 3) Haryana 4) Rajasthan 5) None of these 2. RBI has decided to release a Rs. 5 coin mark 1000 years of which temple recently ? 1) Sabarimala Temple 2) Kashi Vishwanath Temple, Varanasi 3) Brihadeeswara Temple, Thanjavur 4) Vaishno Devi Temple 5) None of these 3. Which of the following approved $ 1 billion loan for the National Ganga River Basin Project recently ? 1) UNEP 2) ADB 3) World Bank 4) All above jointly 5) None of these 4. The revised estimates of national income for the financial year

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2010-11 were released by the Central Statistical Organisation (CSO) on May 31, 2011. Which of the following statements is / are correct ? I) Gross Domestic Product (GDP) at factor cost at 2004-05 prices is Rs. 4877842 crore II) Per Capita GDP at factor cost at 2004-05 prices is Rs. 38,247 III) Per Capita Net National Incoem (NNI) at factor cost at 2004-05 prices is Rs. 35,917 1) I only 2) I and II only 3) II and III only 4) I and III only 5) None of these 5. The government has set up ......... Vidyut Vyapar Nigam' as the Central Agency to purchase solar power from the developers and sell it to distribution companies such as state electricity boards. 1) BHEL 2) NHPC 3) REC 4) NTPC 5) None of these 6. The Reserve Bank of India (RBI) announced a change in its overseas direct investment guidelines to give Indian companies more flexibility in managing international joint ventures (JVs) and wholly-owned subsidiaries. Which of the following statements is / are correct ? I) Listed companies will be allowed to write off 25 per cent capital,

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loans and other receivables such as royalty and management fee of their JVs and wholly-owned subsidiaries without seeking RBI permission II) These guidelines will be applicable for JVs in which Indian promoters own at least 51 per cent III) Existing regulations allow restructuring of balance sheets only for winding - up of JVs and wholly - owned subsidiaries abroad 1) II only 2) I and II only 3) III and I only 4) I, II and III 5) None of these 7. Which public sector bank is associated witht he launch of India's first Gramin Bank (Rural Bank) ATM Card in asociation with Vranasi - based Kashi Gomti Samyut Gramin Bank and National Payments Corporation of India (NPCI) recently ? 1) Allahabad Bank 2) SBI 3) Canara Bank 4) UBI 5) None of these 8. The government announced the setting up of a special wing Directorate of Income Tax (Criminal Investigation) - to investigate criminal offences under direct tax laws recently. Which of the following statements is / are correct ? I) It will work under the purview of Enforcement Directorat II) It will cover evasion of income tax and corporate tax

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III) It will cover evasion of excise and customs duties 1) I only 2) I and II only 3) II only 4) III only 5) None of these 9. Which of the following is not among the five-fold strategy adopted by the government to tackle the menace of illicit funds ? 1) Joining global crusade against 'black money' 2) Creating an appropriate legislative framework 3) Setting up institutions for dealing with Illicit Funds 4) Offering amnesty schemes to bring back black money 5) None of these 10. The National Food Security Mission (NFSM) does not cover : 1) Rice 2) Coarse Cereals 3) Pulses 4) All the above 5) None of these 11. Which of the following statements about rules governing the New Pension Scheme (NPS) is / are correct ? I) Fund managers under NPS can be from public sector as well as private sector II) NPS funds cannot be invested in equity markets III) Both government and private sector employees can invest in NPS

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1) I only 2) I and II only 3) II and III only 4) I and III only 5) None of these 12. SCORES is a complaints redressal system launched by : 1) SEBI 2) IBA 3) CBDT 4) CCI 5) None of these 13. Direct tax collections account for what share of GDP in India ? 1) 9.26 per cent 2) 7.62 per cent 3) 5.66 per cent 4) 4.72 per cent 5) None of these 14. The government has increased the duty - free import quota for garments from which neighbouring country by two million pieces to 10 million recently ? 1) Nepal 2) Bangladesh 3) Myanmar 4) Bhutan 5) None of these

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15. The Committee set up to review the functioning of the National Small Savings Fund (NSSF) submitted its report to the Finance Ministry recently. Which of the following statements is / are correct ? I) It has recommended an increase in the ceiling on annual subscriptions in Public Provident Fund (PPF). II) It has recommended an upward revision of the rate of interest in Post Office Saving Account from 3.5% to 4%. III) It has recommended in increae in the compulsory investment of net small savings collections in State Government Securities 1) I only 2) I and II only 3) II and III only 4) I and III only 5) None of these 16. Which of the following statements regarding recent changes in the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) is / are correct ? I) Age limit for identification of beneficiaries has been lowered II) 60 years is the new age limit for identification of beneficiaries III) Monthly pension has been increased for al beneficiaries 1) I only 2) I and II only 3) II only 4) I, II and III 5) None of these 17. The draft National Manufacturing Policy was given in principle approval by a High Level Committee on Manufacturing,

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held under the Chairmanship of the Prime Minister recently. Which of the following statements is / are correct ? I) The objective is to generat 100 million additional jobs by 2025 II) The objective is to raise the share of manufacturing in GDP to 30% by 2025 III) Manufacturing Industry Promotion Board (MIPB) should be set up to facilitate overseas investments by Indian companies 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 18. The government announced certain changes in the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) recently. Which of the following statements is / are correct ? I) More than 3 crore persons are covered under the IGNOAPS currently II) Total additional requirement of funds for implementing the changes will be Rs. 2,770 crore in 2011-12 II) Age limits for windows and disabled covered under the scheme has been lowered 1) I only 2) I and II only 3) II only 4) II and III only 5) None of these 19. The National Broadband Plan is aimed at rolling out

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broadband infrastructure to every village with more than ...... people. 1) 500 2) 1000 3) 1500 4) 2000 5) None of these 20. The new series of the Index of Industrial Production (IIP) was unveiled recently. Which of the following statements is / are correct ? I) 2004-05 will be the base year II) The weight of manufacturing in the new IIP has been increased III) The weight of mining and electricity has been reduced in the new IIP 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these 21. The government replaced the Duty Entitlement Pass Book [DEP(2)] scheme of export promotion replaced with Duty Drawback scheme on September 30. Which of the following statements is / are correct? I) DEPB was a reimbursement of Customs duty paid by an exporter on an imported input used in the export product II) DEPB was a cashless export promotion scheme III) DEPB was administered by the revenue department of Finance Ministry

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1) I only 2) I and II only 3) II and III only 4) III and I only 5) None of these 22. What is the interest rate in 2011-12 on fresh loans for farmers who have repaid their previous short - term loans on time ? 1) 3% 2) 4% 3) 5% 4) 6% 5) None of these 23. Which of the following indexes was coined by economist Arthur Okun ? 1) Corruption Perception Index 2) Network Readiness Index 3) Terrorism Risk Index 4) Misery Index 5) None of these 24. Which of the following category of workers were included under the Rashtriya Swasthya Bima yojana (RSBY) recently ? 1) Railway porters 2) Beedi workers 3) Carpenters 4) Masons 5) None of these

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25. Which of the following have been disallowed from opening branches abroad by the RBI recently ? 1) Private sector banks 2) Pension Funds 3) Cooperative banks 4) NBFCs 5) None of these 26. Which of the following is the power excahnge being set up by NPTC ? 1) Bharat Power Exchange Ltd 2) National Power Exchange Ltd 3) Power Exchange India Ltd 4) None of the above 5) None of these 27. India has filed an application for an extension of its Exclusive Economic Zone (EEZ) from ...... nautical miles to ............. nautical miles with the United Nations Commission on the Law fo the Sea 1) 100, 300 2) 200, 250 3) 100, 250 4) 200, 350 5) None of these 28. Which was India's best performing state during 1980-2004 in terms of productivity of the organised manufacturng sector, according to a RBI sponsored study unveiled recently ?

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1) Bihar 2) Tamil Nadu 3) Karnataka 4) Haryana 5) None of these 29. What was the insurance penetration (percentage of insurance premium to Gross Domestic Product) in India in 2009 according to figures released by the Finance Ministry in August 2011 ? 1) 3.14 2) 4.80 3) 4.70 4) 5.39 5) None of these 30. Indian - mining companies have bid for a stake in Hajigak ..... ore mines in Afghanistan 1) Bauxite 2) Copper 3) Iron 4) Coal 5) None of these 31. India and ir Lanka signed a MoU to develop the ....... port in July 2011 1) Kankesanthurai 2) Hambantota 3) Trincomalee 4) Galle

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5) None of these 32. The establishment of Serious Fraud Investigation Office to tackle white collar crimes is based on the recommendations of : 1) Vepa kamesam committee 2) J. Venkateswarlu committee 3) Jaydeep N. Shah committee 4) Nilesh S. Vikamsey committee 33. 'Sukhi Griha Parikalpana' is a housing welfare scheme for rehabilitation of slum dwellers launched by which central government ministry? 1) Railway 2) Rural Development 3) Urban Development 4) Labour & Employment 5) None of these 34. A draft policy on foreign direct investment (FDI) in multi-brand retail was unveiled by a committee of secretaries (CoS) in July 2011. Which of the following statements regarding current FDI policy in retail is / are correct ? I) FDI upto 10% is permitted in multi-brand retail. II) 100% FDI is permitted in cash & carry wholesale trade III) FDI upto 51% is permitted in single - brand retail 1) I only 2) I and II only 3) II and III only 4) I, II and III

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5) None of these 35. The government approved the acquisition of ...... Commercial and International Bank Ltd.' by ........ was approved by the government in July 2011. 1) State Bank of India 2) Bank of India 3) Axis Bank 4) ICICI 5) None of these 36. What is the base year of the new series of Consumer Price Indices (CPI) for rural, urban and combined introduced by the govenment in January, 2011 ? 1) 2005 2) 2007 3) 2008 4) 2010 5) None of these 37. Which of the following was imposed a penalty of Rs. 55.5 crore for abusing its dominant position in the currency derivative (CD) market in June 2011 ? 1) National Stock Exchange 2) MCX-SX 3) Bombay Stock Exchange 4) OTCEI 5) None of these

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38. Use of the which of the following softwares in reporting financial results of companies was made compulsory by the government recently? 1) XBRL 2) Tally 3) HTML 4) COBOL 5) None of these 39. What is the minimum time of operation an insurance company is required to launch an initial public offer (IPO) ? 1) 3 years 2) 5 years 3) 7 years 4) 10 years 5) None of these 40. The Finance Ministry recently unveiled the structure of the infrastructure debt funds (IDFs) proposed in Budget 2011-12. Which of the following statements is / are correct ? I) IDF can be set up as a mututal fund (MF) II) IDF can be set up as a non - banking finance company (NBFC) III) IDF can be regulated by RBI or SEBI 1) I and II only 2) II only 3) II and III only 4) I, II and III 5) None of these

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41. The securities and Exchange Board of India (SEBI) announced key changes int he Takeover Code governing mergers and acquisitions of companies in the country in July 2011. According to the new rules an investor whose shareholding in a company exceeds a certain limit will have to make an open offer to acquire a further ..... of the shareholding of the company 1) 18% 2) 20% 3) 24% 4) 26% 5) None of these 42. The comprehensive economic partnership agreement (CEPA) between India and Japan came into effect on August 1, 2011. This is India's third CEPA after ....... 1) USA and United Kingdom 2) Singapore and South Korea 3) Malaysia and Thailand 4) China and Hong Kong 5) None of these 43. The European Union has decided to lift restrictions on India's export of which of the following passing through European ports ? 1) Processed food 2) Cheap medicines 3) Arms and Ammunition 4) Radioactive waster 5) None of these

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44. Which state has the highest slum population in India according to Housing and Urban Poverty Alleviation Ministry ? 1) Maharashtra 2) Andhra Pradesh 3) Uttar Pradesh 4) West Bengal 5) None of these 45. What is India's Per Capita Income at current prices in 2010-11 ? 1) Rs. 41,532 2) Rs. 45,278 3) Rs. 49,294 4) 54.835 5) None of these 46. What is the share of Micro, Small and Medium Enterprises (MSMEs) in India's industrial production ? 1) 8.72% 2) 16.18% 3) 24.67% 4) 44.86% 5) None of these 47. The M. Damodaran committee on customer services by banks has suggested sweeping changes in banking practices in its report submitted to the Reserve Bank of India (RBI) in August 2011. Which of the following statements regarding its recommendations is / are correct ?

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I) There should be a common customer service call centre for all banks II) Insurance cover for deposits should be raised to Rs 500, 000 from Rs 100,000 now III) Banks should offer savings accounts with facilities like cheque facility, ATM card, etc without prescribing a minimum balance requirement 1) I only 2) I and II only 3) II and III only 4) I, II and III 48. The State Bank of India (Subsidiary Banks Laws) Amendment Bill 2009 was passed by the Lok Sabha on August 11, 2011. Which of the following statements is / are correct ? I) It allows subsidiary banks of State Bank of India (SBI) to raise capital through public issue route or through preferential allotment of equity shares II) It authorises the Centre to approve increase in or reduction of the authorised capital of a subsidiary bank III) It permits the SBI Chairman to nominate an official of the State Bank or the subsidiary bank as the Chairman of the Board of a subsidiary bank 1) I only 2) I and II only 3) II and III only 4) I, II and III 5) None of these

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49. Which of the following is / are sold below market price to consumers in India ? 1) Kero sene 2) Diesel 3) LPG 4) All the above 5) None of these 50. The Standing Committee on Petroleum and Natural Gas in its report submitted on August 3, 2011 has called for an end to sale of subsidised domestic cooking gas (LPG) for people with income of more than ....... per annum. 1) Rs 2 lakh 2) Rs 3 lakh 3) Rs 4 lakh 4) Rs 6 lakh 5) None of these ANSWERS: 1) 3 2) 3 3) 3 4) 4 5) 4 6) 4 7) 4 8) 3 9) 4 10) 2 11) 4 12) 1 13) 3 14) 2 15) 2 16) 2 17) 1 18) 4 19) 1 20) 1 21) 2 22) 3 23) 4 24) 2 25) 4 26) 2 27) 4 28) 1 29) 4 30) 3 31) 1 32) 1 33) 1 34) 4 35) 1 36) 4 37) 1 38) 1 39) 4 40) 4 41) 4 42) 2 43) 2 44) 1 45) 4 46) 4 47) 4 48) 4 49) 4 50) 4

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IBPS BANKING AWARENESS PRACTICE QUESTIONS

1.Which of the following bodies tightened the norms for foreign exchange risk cover in India mentioning that only companies with a networth of Rs 200 crore can use derivatives to hedge against risk of volatility in currency rates? a.IMF b. Reserve Bank of India c. SEBI d. Union Ministry of Finance Ans: b 2. Which body in India finally provided tax exemption on the 9.5 per cent interest income on PF deposits for 2010-11? a.Reserve Bank of India b. Income Tax Department c. Employees’ Provident Fund Organisation d. Corporate Affairs Ministry Ans: b 3.(1) The report on Customer Service in Banks by a committee chaired by M. Damodaran, former Chairman of the Securities and Exchange Board of India (SEBI) that was released on 3 July 2011 recommended an increased deposit insurance cover of Rs.5 lakh so as to encourage individuals to keep all their deposits in banks. (2) The panel also suggested blocking of lost ATM cards through SMS and immediate restoration of funds in case of non-dispensation of cash at an ATM within 5 working days. Which of the above is not true? a.Only 1

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b. Only 2 c. Both 1 & 2 d. None of the above Ans: b 4. The Reserve Bank of India (RBI) in a bid to tame inflationary pressure hiked the short-term indicative policy rate (repo rate) by 50 basis points on 26 July 2011. The repo rate currently stands at what percentage? a. 7% b. 7.5% c. 8% d. 8.5% Ans: c 5. Which bank posted a 99 per cent drop in net profit at Rs 21 crore for the fourth quarter ended 31 March 2011 against Rs 1867 crore during the corresponding period in 2010? a. Indian Overseas Bank b. State Bank of India c. Bank of India d. United Bank of India Ans: b 6. Who did global payments processing company MasterCard appoint as the General Manager, South Asia and Country President, India? a. T. V. Seshadri b. Vicky Bindra c. Tunde Lemo d. Ajay Banga Ans: a

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7. Government of India on 19 July 2011 appointed Usha Ananthasubramanian, former general manager of Bank of Baroda (BoB) as executive director of which public sector lender? a. Central Bank of India b. Punjab National Bank c. United Bank of India d. Gramin Bank Ans: b 8. Name the public sector lender that selected Metlife as its partner for a proposed foray into the life insurance segment. a. Syndicate Bank b. Punjab National Bank c. Corporation Bank d. United Bank of India Ans: b 9. Which bank signed a memorandum of understanding with Dewan Housing Finance Corporation (DHFL) under which DHFL will distribute home loans to Yes Bank's customers? a. Canara Bank b. ABN Amro bank c. Yes Bank d. HSBC Ans: c 10. Which life insurance company in India launched a new non-linked health insurance plan, Jeevan Arogya? a. HDFC Standard Life Insurance Co. Ltd b. Life Insurance Corporation of India c. IDBI Fortis Life Insurance Company Ltd. d. SBI Life Insurance Co. Ltd

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Ans: b 11. Which of the following public sector banks in November 2011 froze its lending to the power sector? a. State Bank of India b. Allahabad Bank c. Punjab National Bank d. United Bank of India Ans: b 12. Which Indian bank on 10 May 2011 raised benchmark prime lending rate 75 basis points to 14% following raising of interest rates by RBI by basis points on 3 May 2011? a. State Bank of India b. Union Bank c. Punjab National Bank d. Bank of Baroda Ans: a 13. The Reserve Bank of India on 26 April 2011 fined 19 banks, including the country's top private and foreign banks for violating its guidelines on derivatives. Which is the only public sector bank on the list of banks to be fined? a. State bank of India b. Punjab National Bank c. Bank of India d. Indian Bank Ans: a 14. The Reserve Bank of India on 25 August 2011 released its Annual Report for 2010-11. Which of the following was not discussed in the Annual Report the Central Board of the RBI? a. assessment of the macroeconomic performance during 2010-11

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b. prospects for 2011-12 c. working and operations of the Reserve Bank and its financial accounts d. role of regulatory bodies in controlling the financial markets Ans: d 15. Reserve Bank of India (RBI) panel headed by headed by Usha Thorat, Director, Centre for Advanced Financial Research and Learning (CAFRAL) on 29 August 2011 came up with suggestion on non-banking finance company (NBFC). Which of the following related to this statement is not true? 1. The panel suggested the central bank to insist on a minimum asset size of more than Rs.25 crore for registering any new non-banking finance company (NBFC) 2. Transfer of shareholding, direct or indirect, of 25 per cent and above, change in control, merger or acquisition of any registered NBFC will require prior approval of the Reserve Bank. 3. Tier-I capital for capital to risk weighted assets ratio (CRAR) purposes would be specified at 12 per cent to be achieved in three years for all registered deposit-taking and non-deposit-taking NBFCs. 4. NBFCs would be subject to regulations similar to banks while lending to stock brokers and merchant banks and similar to stock brokers, as specified by the Securities and Exchange Board of India (SEBI) a. 1 & 4 b. 2 & 4 c. Only 4 d. Only 1 Ans: d

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16. Which Indian PSU bank in tune with its plans to expand its retail division in the UK entered the mortgage market in the country for the first time? a. Punjab National Bank b. Oriental Bank of Commerce c. State bank of India d. Indian Overseas Bank Ans: c 17. Which of the following banks set up two loan processing centres for the small and medium enterprise (SME) segment on a pilot basis in Bangalore & in New Delhi in September 2011? a. Corp Bank b. United Bank of India c. Syndicate Bank d. Bank of Baroda Ans: c 18. The government suspended M Ramadoss for alleged violations in issuing insurance cover to an airline during his stint as head of another state-run insurer. To which insurance group did he belong to? a. New India Assurance b. LIC c. GIC d. ICICI Insurance Ans: a 19. Which of the following banks in early May 2011 entered into a tie-up with non-banking finance companies such as Future Capital, Bajaj Finance, and Reliance Capital to grow its retail portfolio? a. Central Bank of India

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b. State Bank of India c. Bank of India d. HDFC Bank Ans: a 20. Which are the two Gujarat-based cooperative sector lenders on which Reserve bank of India imposed a financial penalty of Rs 1 lakh each for violation of various rules, including anti-money laundering guidelines? 1. Shree MahalaxmiMercantile Co-operative Bank 2. Rander People's Co-operative Bank 3. Abad District Co Op Bank 4. Ahd Mercantile Co-Op Bank Ltd a. 1 & 2 b. 2 & 3 c. 1 & 4 d. 3 & 4 Ans: (a)

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SBI Associate Banks Probationary Officers Exam., 2011

General Awareness, Marketing and Computers (Exam Held on 7-8-2011) 1. A major Public Sector Bank raised interest rates on loans by 25 basis points–was news in some major financial newspapers recently. This means bank has raised interest by 25 basis points of– (A) Savings Bank Interest Rate (B) Base Lending Rate (C) Repo Rates (D) Present Rates on Deposits (E) Discounted Rates of Interest Ans : (B) 2. The Finance Minister of India in one of his press conferences said that inflationary pressure is likely to continue following recent increase in rates of some commodities in international markets. Which of the following commodities was he referring to as it gets frequent increase at international levels and disturbs our Home Economy substantially ? (A) Gold and Silver (B) Petroleum products (C) Tea and Coffee (D) Sugar (E) Jute and Jute products Ans : (B)

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3. Immediately prior to change in the measure of Food Inflation, which of the following indexes was being used for measuring it? (A) Wholesale Price Index (B) Consumer Price Index (C) Interest Rates offered by banks on deposits (D) Sensex and Nifty (E) None of these Ans : (B)

4. What is the full form of 'FINO' a term we see frequently in financial newspapers ? (A) Financial Investment Network and Operations (B) Farmer's Investment in National Organisation (C) Farmers Inclusion News and Operations (D) Financial Inclusion Network and Operations (E) None of these Ans : (E) 5. Which of the following is / are commodity/ies on which subsidy is given to farmers / poor in India ? 1. Fertilizer 2. Kerosene 3. LPG (A) Only1 (B) Only 2 (C) Only 3 (D) Only 1 and 3

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(E) All 1, 2 and 3 Ans : (E) 6. 'Bhagyam Oilfields' which were recently in news are located in which of the following states in India ? (A) Rajasthan (B) Gujarat (C) Assam (D) Maharashtra (E) Karnataka Ans : (A) 7. The Finance Minister of India recently decided to review the position of 'Bad Debts' in priority sector. Which of the following is/are the reason(s) owing to which PM took this decision ? 1. Bad Debt in agriculture is still rising substantially every year despite special treatment to it. 2. Bad Debt in other areas of priority sector is almost nil now, 3. Govt. is planning to disburse another installment of Rs. 1,60,000 crore which will bring 'Bad Debts' almost at 'Nil level' and no special treatment will be needed in next fiscal year. (A) Only 1 (B) Only 2 (C) Only 3 (D) Both 1 and 2 (E) All 1, 2 and 3 Ans : (E) 8. Which amongst the following countries is not a member of the

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TAPI pipe line project, which was in news recently ? (A) India (B) Afghanistan (C) Portugal (D) Pakistan (E) Turkmenistan Ans : (C) 9. An agreement on Arms Reduction popularly known as 'START' is one of the major issues in the way of smooth relations between which of the following two countries ? (A) India–Pakistan (B) India–China (C) China–Japan (D) USA–Russia (E) Russia–Iran Ans : (D) 10. The International WWW Conference-2011 was organized in which of the following places in March 2011 ? (A) London (B) Paris (C) Vienna (D) Manila (E) Hyderabad Ans : (E) 11. Which of the following international agencies/ organizations had initiated an "International Convention for the 'Protection of All

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Persons from Enforced Disappearance' , which came into effect recently ? (A) World Health Organisation (WHO) (B) International Court of Justice (C) International Maritime Organisation (D) International Atomic Energy Agency (E) United Nations organization Ans : (E) 12. 'BRIC' which was the Organisation of 4 nations namely Brazil, Russia, India and China has now become 'BRICS'. Which is the fifth nation included in it ? (A) South Korea (B) Sp Lanka (C) Singapore (D) Spain (E) South Africa Ans : (E) 13. The process of acquisition of agricultural land and its compensation to farmers recently came up as a major issue in which of the following states ? (It also created law and order problem in the State) (A) Haryana (B) Gujarat (C) Uttar Pradesh (D) Rajasthan (E) Punjab Ans : (C)

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14. What does the letter 'L' denote in term 'LAF' as referred every now and then in relation to monetary policy of the RBI ? (A) Liquidity (B) Liability (C) Leveraged (D) Longitudinal (E) Linear Ans : (A) 15. BP Pic which was in news recently is a major international company in field of– (A) Heavy Machinery (B) Oil exploration and processing (C) Atomic Energy (D) Information Technology (E) None of these Ans : (B) 16. Who amongst the following has been appointed as the new coach of the Indian Cricket team for a period of two years ? (A) Stuart Law (B) Allan Border (C) Gary Kirsten (D) Duncan Fletcher (E) Allan Donald Ans : (D) 17. Why was Kanishtha Dhankhars name in news recently ?

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(A) She was crowned Femina Miss India-2011 (B) She was adjudged Best Actress-2010 by Film Fare (C) She is the new Capital of India's woman cricket team (D) She is the new Dy. Minister Textile in place of Dayanidhi Maran (E) None of these Ans : (A) 18. K. Balachander, who was awarded prestigious Dada Saheb Phalke Award-2010, is basically a/an– (A) Actor (B) Director (C) Photographer (D) Music Director (E) Choreographer Ans : (D) 19. Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short term securities as a reserve all the time. In Banking World this is known as– (A) CRR (B) Fixed Asset (C) SLR (D) PLR (E) None of these Ans : (A) 20. Which of the following Space agencies recently launched three satellites and placed them into Polar Sun Synchronous Orbit

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successfully? (A) NASA (B) ROSCOSMOS (C) cnsa (D) ISRO (E) JAXA Ans : (D) 21. As per the decision taken by the Govt. of India recently, "Bamboo is a liberated item now". What does it really mean ? 1. Bamboo, henceforth will be treated as a minor forest produce only. 2. Now villagers are free to sell bamboo in their community forest areas. 3. Gramsabha is given right to issue transport passes to legally transport the produce. (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these Ans : (D) 22. Union Cabinet recently passed a Rs. 7000 crore project to clean-up which of the following rivers in India? (A) Narmada (B) Ravi (C) Ganga (D) Chambal

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(E) Krishna Ans : (C) 23. As per estimates of the Planning Commission of India the target growth rate of 12th Five Year Plan is set to– (A) 7 to 8% (B) 8.0% to 8.5% (C) 9% to 9.5% (D) 10 to 10.5% (E) 11% Ans : (E) 24. Goodluck Jonathan was recently reelected the President of– (A) South Africa (B) Nigeria (C) Kosovo (D) Haiti (E) None of these Ans : (B) 25. Which of the following schemes is not launched by the Ministry of Rural Development, Govt. of India ? (A) National Old Age Pension Scheme (B) National Maternity Benefit Scheme (C) National Family Benefit Scheme (D) Mid-Day Meal Scheme (E) All are launched by Ministry of Rural Development Ans : (D)

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26. Where you are likely to find an embedded operating system ? (A) on a desktop operating system (B) on a networked PC (C) on a network server (D) on a PDA (E) on a mainframe Ans : (D) 27. An online discussion group that allows direct 'live' communication is known as– (A) Webcrawler (B) chat group (C) regional service provider (D) hyperlink (E) e-mail Ans : (B) 28. Which of the following is a program that uses a variety of different approaches to identify and eliminate spam ? (A) Directory search (B) Anti-spam program (C) Web server (D) Web storefront creation package (E) Virus Ans : (B) 29. Connection or link to other documents or Web Pages that contain related information is called– (A) dial-up

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(B) electronic commerce (C) hyperlink (D) e-cash (E) domain name Ans : (C) 30. Which of the following is a programming language for creating special programs like applets ? (A) Java (B) cable (C) domain name (D) Net (E) COBOL Ans : (A) 31. The system unit– (A) coordinates input and output devices (B) is the container that houses electronic components (C) is a combination of hardware and software (D) controls and manipulates data (E) does the arithmetic operations Ans : (C) 32. System software– (A) allows the user to diagnose and troubleshoot the device (B) is a programming language (C) is part of a productivity suit (D) is an optional form of software

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(E) helps the computer manage internal resources Ans : (E) 33. Computer and communication technologies, such as communication links to the Internet that provide help and understanding to the end user is known as– (A) presentation file (B) information technology (C) program (D) worksheet file (E) FTP Ans : (B) 34. Which of the following is contained on chips connected to the system board and is a holding area for data instructions and information ? (processed data waiting to be output to secondary storage) (A) program (B) mouse (C) Internet (D) memory (E) modem Ans : (D) 35. Microsoft's Messenger allows users to– (A) to bypass a browser to surf the Web (B) create a blog (C) communicate via direct live communication (D) identify and eliminate spam

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(E) make graphic presentations Ans : (C) 36. Portable computer, also known as laptop computer, weighing between 4 and 10 pounds is called– (A) general-purpose application (B) Internet (C) scanner (D) printer (E) notebook computer Ans : (E) 37. The main circuit-board of the system unit is the– (A) computer program (B) control unit (C) motherboard (D) RAM (E) None of these Ans : (C) 38. Which of the following is billionth of a second ? (A) Gigabyte (B) Terabyte (C) Nanosecond (D) Microsecond (E) Terasecond Ans : (C) 39. Online Marketing is the function of which of the following ?

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(A) Purchase Section (B) Production Department (C) I.T. Department (D) Designs Section (E) A collective function of all staff Ans : (E) 40. Customisation is useful for– (A) Designing customer specific products (B) Call centers (C) Publicity (D) Motivating the staff (E) Cold calls Ans : (A) 41. The key challenge to market driven strategy is– (A) Selling maximum products (B) Employing maximum DSAs (C) Delivering superior value to customers (D) Being rigid to changes (E) Adopting short term vision Ans : (C) 42. Effective Selling skills depends on– (A) Size of the sales teams (B) Age of the sales teams (C) Peerstrength (D) Knowledge level of the sales team (E) Educational level of the sales team

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Ans : (C) 43. Generation of sales leads can be improved by– (A) Being very talkative (B) Increasing personal and professional contacts (C) Being passive (D) Engaging Recovery Agents (E) Product designs Ans : (B) 44. A Market Plan is– (A) Performance Appraisal of marketing staff (B) Company Prospectus (C) Documented marketing strategies (D) Business targets (E) Call centre Ans : (C) 45. Marketing channels mean– (A) Delivery objects (B) Sales targets (C) Delivery outlets (D) Delivery boys (E) Sales teams Ans : (C) 46. Social Marketing means– (A) Share market prices (B) Marketing by the entire society

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(C) Internet Marketing (D) Marketing for a social cause (E) Society bye-laws Ans : (D) 47. Service Marketing is the same as– (A) Internet Marketing (8) Telemarketing (C) Internal Marketing (D) Relationship Marketing (E) Transaction Marketing Ans : (D) 48. Market driven strategies include– (A) Identifying problems (8) Planning marketing tactics of peers (C) Positioning the Organisation and its brands in the market place (D) Internal marketing (E) Selling old products Ans : (C) 49. Innovation in marketing is same as– (A) Motivation (8) Perspiration (C) Aspiration (D) Creativity (E) Teamwork Ans : (D)

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50. Personal Loans can be canvassed among– (A) Salaried persons (8) Pensioners (C) Foreign Nationals (D) NRI customers (E) Non-customers Ans : (A)

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GENERAL AWARENESS MODEL QUESTIONS

1. As per the existing norms and policies of the RBI, Banks are required to advance how much of their total advances to priority sectors ? A.30% B. 35% C. 40% D. 25% Answer: (C) 2. The rate of interest, banks charge to its main/major and prime; customers is popularly called as.............. A. risk premium B. prime lending rate C. repo rate D.reverse repo rate Answer: (B) 3. Which of the following was the mutual fund listed on the newly launched mutual fund platform on National Stock Exchange ? A. UTI Mutual Fund B. SBI Mutual Fund C. LIC Mutual Fund D. Bank of Baroda Mutual Fund Answer: (A) 4. Which of the following cannot be called as debt instrument as

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referred in financial transaction ? A.certificate of deposit B. bonds C. stocks D. loans Answer: (D) 5. Which of the following organizations/agencies has recently released "Asian Development Outlook 2011" ? A. world bank B. Asian Development Bank C. UNCTAD D. UNESCO Answer: (B) 6. When was the "Self Help Group" bank linkage programme started ? A. 1992 B. 1995 C. 1998 D. 2001 Answer: (A) 7. While returning cheques, the uniforms regulations and rules for bankers clearing houses expect the banks that the returning memo sent by banks to the collecting banks : A.should be signed B.should be signed or initialed C.if it is computerized no signatures or initials are required

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D.all of the above Answer: (B) 8. The RBI on July 5,2011 extended the .......... percent ceiling of bank investment in liquid schemes of mutual funds to include short-term debt funds. A.5 B.8 C.10 D.12 Answer: (C) 9. RBI has introduced a new series of 'star' bank note, which will be issued in denominations of ? A. Rs. 10 , Rs. 20 , Rs. 50 B. Rs. 10 , Rs. 50 , Rs. 100 C. Rs. 20 , Rs. 50 , Rs.100 D.Rs. 20 , Rs. 100 , Rs. 500 Answer: (A) 10. Recently which bank has successfully completed 100 years? A. Punjab National bank B. Central Bank of India C. Bank of India D.State Bank of India Answer: (B) 11. If you see a big hoarding at a prominent public place, the punch line of which says ‘We All Were Born Free’; ‘We All Have Equal

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Rights’, in all probability, the hoarding is put up by— A. Union Public Service Commission B. Ministry of Foreign Affairs C. National Human Rights Commission D. National Commission for Farmers Answer: (C) 12. Who amongst the following was India’s official candidate for the post of UNO’s Secretary General ? A.Mr. Shyam Saran B. Mr. Vijay Nambiar C.Mr. Shashi Tharoor D.Dr. C. Rangarajan Answer: (C) 13. Prof. Muhammad Yunus the recipient of the Nobel Peace Prize 2006 is the exponent of which of the following concepts in the field of banking ? A. Core Banking B. Micro Credit C. Retail Banking D. Internet Banking Answer: (B) 14. Many a time we read in the newspapers that RBI has changed or revised a particular ratio/rate by a few basis points. What is basis point ? A. Ten per cent of one hundredth point B. One hundredth of 1%

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C. One hundredth of 10% D.Ten per cent of 1000 Answer: (B) 15. Expand the term NREGA— A.National Rural Employment Guarantee Act B. New Rural Employment Guarantee Agency C.National Rural Employment Guarantee Act D.National Rural Employment Guarantee Agency Answer: (A) 16. Which of the following awards is not given for excellence in the field of literature ? A.Arjun Award B. Bharatiya Gnanpith Award C.Nobel Prize D. Booker Prize Answer: (A) 17. Who is the author of the book ‘Future Shock’ ? A.Kenneth Blanchard B.Napoleon Hill C.Tom Peters D.Alvin Toffler Answer: (D) 18. The market in which long term securities such as stocks and bonds are bought and sold is commonly known as— A.Capital Market

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B .Bull Market C.Commodities Exchange D.Bullion Market Answer: (D) 19. The Tarapore committee report is concerned with which of the following :: A.SBI B.RBI C.SEZ D.Capital A/c convertibility Answer: (D) 20. The per-capita income in India is estimated by ? A.Central statistical organization B. RBI C. Central bank D. Census commission Answer: (A) 21. Which of the following is not a bank or finance company? A.Barclays B. BNP Paribas C.Lufthansa D. HSBC Answer: (C) 22. Approximately what per cent of the Indian population lives on $ 1 or even less a day?

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A. 35 B. 30 C. 25 D. 20 Answer: (A) 23. The J.L. Nehru Centre for Advanced Scientific Research was recently in the news because of: A.ultra modern scientific courses in India B.Ist nano-technology lab in India C.success in DNA coding D.international meeting of scientists Answer: (B) 24. Karvar, Sasan, Akaltara, Mudra and Ratnagiri are the sites proposed for: A.archaeological survey B.test sites for Indian missiles C.hydroelectric power projects D.ultra-mega power plants Answer: (D) 25. Which of the following is NOT one of the recommendations of the committee setup on Financial Sector Reforms under the Chairmanship of Raghuram G.Rajan ? (1) Give more freedoms to banks to setup branches and ATMS anywhere (2) Setup an office of financial ombudsmen (3) All deposits taking institutions should be free from the

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supervision of the RBI A.Only 1 B.Only 2 C.Only 3 D. All Answer: (A) 26. Federal Reserves is the Central Bank of— A.China B.Canada C.U.S.A. D.Japan Answer: (C) 27. Which of the following companies of Indian origin has been placed amongst the World's seven Best Firms in Financial Sector ? A.ICICI Bank B.HDFC Bank C.Bajaj Capitals D.IDBI Bank Answer: (B) 28. Which of the following is one of the two sub-schemes under the Rashtriya Krishi Vikas Yojana (RKVY) launched in union budget 2011-2012 ? A.saffron mission B.accelerated fodder development program C.bringing green revolution to eastern India D.national mission for protein supplements

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Answer: (A) 29. Who among the following leaders did not attend the IBSA summit in October 2011 ? A.Dmitri Medvedav B. Manmohan singh C.Jacob Zuma D. Dilma Raussef Answer: (B) 30. Financial market department was setup in RBI in ? A.July 2006 B.July 2005 C.August 2006 D. August 2005 Answer: (B)

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Women use their debit cards less frequently, reveals RBI survey

This piece of information may give you some insight into how women deal with money. The Reserve Bank of India, in a survey, has found that they use their debit cards less frequently. What one could deduce from this finding is that women prefer to use credit cards for shopping to avail themselves of the 45-day credit period. But when it comes to hard cash for daily needs, it is the hubby who swipes the debit card at an ATM.

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“Women may be smarter when it comes to money matters. The 45-day free credit period that comes with shopping with a credit card is an irresistible attraction,” said Mr Sanjay Sharma, Managing Director IDBI Intech, a banking and financial service technology provider. The number of debit and credit cards outstanding as at September-end 2011 was 25 crore and 1.76 crore respectively. Some of the other findings of the RBI's survey to assess customer satisfaction in the usage of ATMs across the country are: the use of cards for shopping was more among the youth; the use of debit cards for shopping was the highest in Maharashtra and Andhra Pradesh. Further, debit cards were mainly used for withdrawing cash or shopping purposes and the use of these cards for bills payment/ticket purchase was still low. The survey covered 600 ATMs distributed proportionately over metro, urban, semi-urban and rural regions, constituting one per cent of the total number of 60,000 ATMs in the country.

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Customer service slips in public sector banks

While a good number of people generally state that they prefer to have their accounts in state-run banks, citing safety as the most important criteria, the banking regulator's findings reveal that customer service complaints against public sector banks have risen in 2010-11 as compared to those against private sector and foreign banks. ‘Customer satisfaction is an integral element in inculcating trust among the common people on the banking sector,' states the Report on Trend and Progress of Banking in India 2010-11. Understanding the importance of customer service in banking, the RBI set up a separate customer service department in 2006 as also Banking Ombudsman (BO) offices in 15 major banking centres. The BO has since proved to be a forum for redressing complaints received from customers.

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According to the latest Trend and Progress report, the number of complaints received by the banking ombudsman has dipped in 2010-11 to 71,274 from 79,266 in 2009-10. The decline in complaints has been more visible in the BO offices in Chennai, where it fell from 12,727 in 2009-10 to 7,668 in 2010-11, in New Delhi from 12,045 to 10,508 and in Mumbai from 10,058 to 7,566. In the midst of this declining trend, Bhopal, Patna, Ahmedabad, Chandigarh and Guwahati reported an increase in the number of complaints. The report further points out that the number of complaints per branch was high for foreign banks at 22.34, with almost a-fourth of the total received against credit/debit/ ATM cards. The second largest number of complaints was with regard to pension followed by loans and advances. More than 90 per cent of the total complaints relating to Direct Selling Agents (DSA) were received against foreign banks and new private banks in 2010-11 and 50 per cent (of the total complaints) related to hidden charges. Such complaints were found to be relatively less in public sector banks. Pension-related complaints were instead quite high, accounting for almost 95 per cent of the total complaints, in public sector banks. The RBI had constituted a Committee under the Chairmanship of the former Chairman of SEBI, Mr M. Damodaran, to examine banking services rendered to retail and small customers, including pensioners in 2010. The Committee was also mandated to look into the grievance redressal mechanism prevalent in banks, suggest measures for

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expeditious resolution of complaints. The committee interacted with various stakeholders on all aspects of customer service, including attitude of bank staff towards small and rural customers, service charges, transparency in operations, grievance redressal, customer rights and expectations, among others.

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Regional rural banks see healthy growth in saving bank deposits November 15, 2011 It looks like people in rural areas put more money in savings bank (SB) deposits than in term deposits. This was visible in 82 regional rural banks (RRBs), which saw SB deposits rise by nearly Rs 15,000 crore and term deposits by around Rs 4,800 crore in 2010-11. Also, current account deposits were up by around Rs 1,100 crore. These figures were released by the RBI in its Report on Trend and Progress of Banking in India 2010-11 on Monday. The CASA (current account savings account) deposits constituted almost 60 per cent of the total deposits. The vast rural presence and small-ticket deposits helped boost CASA. While agriculture credit constituted nearly 55 per cent of the total credit. The crop loan alone was around 40 per cent of the total credit. In all, priority sector lending was 82.4 per cent to the total credit. The credit-deposit ratio, which was 57.1 per cent in 2009-10, increased to 59.69 per cent during 2010-11. PROFIT GROWTH The RRBs in the country recorded a net profit of Rs 1,988 crore (Rs 1,884 crore), a growth of 5.5 per cent. The growth in net profit was mainly because of a nearly 30 per cent decline in provisions and contingencies during the period. The provisions and contingencies decreased to Rs 705 crore (Rs 1,029 crore) during the period.

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On the income side, the interest income stood at Rs 15,225 crore (Rs 12,945 crore), recording a growth of 17.6 per cent. On the expenditure side, the wage bill saw a jump of 42.9 per cent — from Rs 2,676 crore in 2009-10 to Rs 3,825 crore in 2010-11. The migration of banking operations to core banking solution (CBS) gained pace, and 65 of the 82 RRBs implemented them by the end of September 30.

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SBI, ICICI Bank lead peers in global branch network

State Bank of India and ICICI Bank appropriated to themselves the credit of running the most extensive global networks from among the country's public and private sector banks. State Bank of India (SBI) owns the largest network of foreign offices (64) as at August-end, says the Report on Trend and Progress of Banking in India 2010-11. Bank of Baroda followed with 60. Together, these two accounted for 51 per cent of total foreign offices of banks. SBI also undertook the largest expansion of foreign operations by opening five new offices abroad during the year under reference. ICICI Bank (19) led the private sector banks in terms of largest foreign presence. FOREIGN BANKS

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The number of foreign banks operating here is 38 (34 a year ago). The number of branches too rose to 321 (315). Another 47 (45) banks had representative offices. Standard Chartered had the largest network, followed by HSBC, Citibank and the Royal Bank of Scotland. Permission was granted to National Australia Bank, Industrial and Commercial Bank of China, Rabobank International and Woori Bank to open one branch each. Besides, Sumitomo Mitsui Banking Corporation was allowed to open a representative office. Foreign operations of Indian banks expanded to a network of 244 offices as compared with 233 offices in the previous year.

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GENERAL AWARENESS MCQs FOR BANK EXAMS

1. Which of the following countries is not a member of G-8? 1) Canada 2) Russia 3) Spain 4) France 5) Italy 2. Which of the following is a Public sector bank? 1) Dena 2) Karnataka 3) South Indian 4) Karur Vysya 5) IndusInd 3. Which of the following committees is associated with the microfinance institutions (MFIs)? 1) B.N. Srikrishna 2) Kirit Parikh 3) Rangarajan 4) Y.H. Malegam 5) Bimal Jalan 4. U.K.Sinha is the Chairman of which of the following regulators? 1) SEBI 2) IRDA 3) FMC

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4) TRAI 5) AERA 5. Who became the first Indian author to win the Man Booker Prize in 1981? 1) Salman Rushdie 2) Arundhati Roy 3) Kiran Desai 4) Aravind Adiga 5) None

6. Which of the following cups is associated with Lawn Tennis? 1) Yonex Cup 2) Hopman Cup 3) Thomas Cup 4) Uber Cup 5) Tunku Abdul Rahman Cup 7. Which of the following international groups/organizations consists of only developing countries? 1) UNO 2) G8 3) G15 4) G20 5) OECD 8. The banking Ombudsman sche-me was formulated by the Reserve bank of India to provide an expeditious redressal

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grievan-ce mechanism to bank custom-ers. When did this scheme beco-me operational? 1) 1990 2) 1992 3) 1995 4) 1998 5) 1996 9. Which of the following is the pu-nchline of the Bank of Baroda? 1) With you all the way 2) Pure banking Nothing else 3) The Banker to every Indian 4) Nation banks on us 5) India's International Bank 10. Taufik Hidayat, Joachim Person, Lin Dan and Chetan Anand are the famous players associated with which of the following sports? 1) Tennis 2) Table Tennis 3) Badminton 4) Chess 5) Golf 11. The Lok Sabha passed a Bill recently to change the name of which of the following states? 1) Assam 2) Orissa 3) Uttarakhand 4) Karnataka

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5) Andhra Pradesh 12. Ollanta Humala, who previously served as an army officer, beca-me the President of which of the following countries in July 2011? 1) Uganda 2) Peru 3) Mexico 4) South Africa 5) None of these 13. Ms. Pauline Nyiramasuhuko became the first-ever woman to be found guilty of genocide by an international tribunal. She was a former minister for women's em-powerment of which of the following countries? 1) Sudan 2) Algeria 3) Ethiopia 4) Rwanda 5) Uganda 14. Who was appointed the Central Vigilance Commissioner (CVC) in July 2011? 1) P.J. Thomas 2) Pradeep Kumar 3) Ajit Seth 4) Ajit Singh 5) None of these

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15. What is the annual funding under the Member of Parliament Local Area Development Scheme (MPLADS) for the current fiscal (2011-12)? 1) Rs. 2 Crore 2) Rs. 3 Crore 3) Rs. 5 Crore 4) Rs. 4 Crore 5) None of these 16. Which country recently opened the world's longest sea bridge (36.48km) to traffic? 1) India 2) USA 3) China 4) Japan 5) Russia 17. Which Indian shuttler won the title at the Maldives International badminton challenge held in Male, Maldives in June 2011? 1) Saina Nehwal 2) P.C. Tulasi 3) P.V. Sindhu 4) Gutta Jwala 5) Ashwini Ponappa 18. Mayookha Johny of India won a gold medal at the 19th Asian athletics championships in Kobe, Japan in July 2011. In which spo-rting event did she win the gold medal? 1) High Jump

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2) Pole Vault 3) Shot Put 4) Discus throw 5) Long Jump 19. The Karpoor Chandra Kulish International Award is given for excellence in which of the following fields? 1) Classical music 2) Print Journalism 3) Movies 4) Sports 5) None of these 20. Which Indian-origin student won the 2011 Scripps National Spel-ling Bee competition held in Maryland, USA? 1) Sameer Mishra 2) Kavya Shivshankar 3) Anamika Veeramani 4) Sukanya Roy 5) None of these 21. Naresh Goyal has been re-elected to the prestigious Board of Governors of the International Air Transport Association (IA-TA) from 2011 to 2013. He is the chairman of which of the following airlines? 1) SpiceJet 2) Kingfisher Airlines 3) IndiGo 4) Jet Airways

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5) None of these 22. Broken Republic is a book about the Maoist guerrilla movement in the forests of central India. Who is the author? 1) Siddhartha Deb 2) Kiran Desai 3) Anita Desai 4) Arundhati Roy 5) None 23. Who was honoured with the Jawaharlal Nehru Award for International Understanding for 2009 in May 2011? 1) Nelson Mandela 2) Aung San Suu Kyi 3) Angela Merkel 4) Luiz Inacio Lula da Silva 5) None of these 24. Yingluck Shinawatra is the first woman Prime Minister of which of the following countries? 1) Myanmar 2) Thailand 3) Cambodia 4) Malaysia 5) Indonesia 25. Indian Overseas Bank (IOB) has launched its 'e-Kiosk', an automated cheque depositing system, recently. Where is the headquarters of the IOB?

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1) Mumbai 2) Chennai 3) New Delhi 4) Kolkata 5) Pune 26. Which country has decided to phase out nuclear power by 2034 after the Japan disaster shook pu-blic confidence in the Industry? 1) France 2) USA 3) India 4) Switzerland 5) Pakistan 27. The Reserve Bank of India has directed banks to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within how many days of an account holder's complaint? ( With effect from July 1,2011) 1) 7 2) 10 3) 12 4) 15 5) 30 28. Who won the U.S. open golf championship in June 2011? 1) Tiger Woods 2) Graeme McDowell 3) Lucas Glover

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4) Rory McIlory 5) None 29. Who became the Ambassador of India to the United States of America in August 2011? 1) Shiv Shankar Menon 2) Meera Shankar 3) Ranjan Mathai 4) Nirupama Rao 5) None 30. Sepp Blatter was re-elected as the President of which of the following sports governing bodies in May 2011? 1) ICC 2) FIFA 3) IAAF 4) FIH 5) None of these 31. The concessional rate of interest which is lower than the normal bank rate of interest is called? 1) Repo rate 2) Reverse repo rate. 3) Cash Reserve ratio 4) bank rate 5) base rate 32. Which scheme seeks to improve the conditions of the urban slum dwellers living below the poverty line that do not possess

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adequate shelter? 1) JNNURM 2) NREGP 3) VAMBAY 4) Bharat Nirman 5) None of these 33. Who is the author of the book 'My Country, My Life'? 1) Khushwant Singh 2) Jaswant Singh 3) Jawaharlal Nehru 4) L.K. Advani 5) None of these 34. Oscar awards are given annually in which of the following fields? 1) Literature 2) Science 3) Peace 4) Economics 5) Films 35. Which of the following institutions regulate the Unit Linked Insurance Plans (ULIPs)? 1) SEBI 2) LIC 3) RBI 4) IRDA 5) FMC

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36. Which of the following banks' mascot is the DOLLe (dolphin)? 1) IndusInd 2) Syndicate 3) Andhra 4) Bank of India 5) State Bank of India 37. In which field is Pritzker Prize given? 1) Mathematics 2) Architecture 3) Medicine 4) Peace 5) None 38. Which of the following authors was given the Lost Man Booker Prize in 2010 for his book 'Troubles'? (He is also the author of the book 'The Siege of Krishnapur, that won the 1973 Booker Prize'.) 1) P.H. Newby 2) J. G. Farrell 3) V. S. Naipaul 4) William Golding 5) Ruth Prawer Jhabvala ANSWERS: 1. (3) 2. (1) 3. (4) 4. (1) 5. (1) 6. (2) 7. (3) 8. (3) 9. (5) 10. (3) 11. (2) 12. (2) 13. (4) 14. (2) 15. (3) 16. (3) 17. (3) 18. (5) 19. (2) 20. (4) 21. (4) 22. (4) 23. (3) 24. (2) 25. (2) 26. (4) 27. (1) 28. (4) 29. (4) 30. (2)

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31. (5) 32. (3) 33. (4) 34. (5) 35. (4) 36. (3) 37. (2) 38. (2)

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IBPS GENERAL AWARENESS MCQs

1) This agency issued guidelines on distance marketing of products on 6 April 2011 to protect the interest of people who buy policies over phone or Internet. Identify the agency. a. SEBI b. IRDA c. TRAI d. DoT 2) In India’s first sale of rupee perpetual bonds by a non-finance company Rs 1500 crore ($332 million) was raised. Name the non-finance company. a. Tata Steel b. Pantallons Retail c. RIL d. Maruti Suzuki 3) Which of the following Indian cricket players took the highest number of wickets in the recently concluded ICC World Cup 2011 along with Pakistan’s Shahid Afridi? a. Yuvraj Singh b. Zaheer Khan c. Munaf Patel d. Harbhajan Singh 4) Union Sports Ministry on 6 April 2011 formed a committee to fine-tune the draft National Sports Development Bill. Who is heading the committee?

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a. Justice Mukul Mudgal b. Justice Tej Pratap Singh Mann c. Justice Gurdev Singh d. Justice Jaswant Singh Phogat 5) Name the cricketer who beat Michael Clarke by a comfortable 15-vote margin to bag the Allan Border Medal besides being named Australia’s ODI Player of the Year in Feb 2010? a. Shane Watson b. Simon Katich c. Mitchell Johnson d. Sachin Tendulkar 6) Record food grain production helped to reduce food inflation to a four month low for the week ending 26 March 2011. What was the inflation percentage for the week? a. 9.18% b. 9.25% c. 9.21% d. 9.36% 7) Praveen Kumar Tripathi took over as the Chief Secretary of which of the following governments on 4 April 2011? a. Delhi Government b. Haryana Government c. Uttar Pradesh Government d. Uttarakhand Government 8) The Union Government gifted a Kendriya Vidyalaya to a nondescript village Indrapura to which of the following Indian states?

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a. Bihar b. Odisha c. Rajasthan d. Madhya Pradesh 9) The Supreme Court on 5 April 2011 passed an order to lift iron export ban imposed by which of the following Indian states on 26 July 2010 and also ordered it to implement the new rules for regulating iron ore mining and transportation? a. Tamil Nadu b. Andhra Pradesh c. Karnataka d. Odisha 10) To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee Fund was announced to be created under which of the following scheme or Yojana? a. Rajiv Awas Yojana b. Rajiv Gandhi Grameen Vidyutikaran Yojana c. Indira Awas Yojana d. Mahatama Gandhi NREGA 11) Which agency issued guidelines on distance marketing of products on 6 April 2011 to protect the interest of people who buy policies over phone or Internet? a. SEBI b. IRDA c. TRAI d. DoT

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12) Buyer's Credit was launched by the Commerce and Industry Minister, Anand Sharma, on 6 April 2011 to boost project exports from India. Under which of the following was Buyer’s Credit launched? a. National Export Insurance Account b. Export-Import Bank of India c. Export Credit Guarantee Corporation of India d. Reserve Bank of India 13) Read the two statements mentioned with regard to the budgetary allocations for addressing environmental concerns. 1. The budget proposed that the solar lantern used in far-flung villages will attract no duty from 10 per cent charged earlier. 2. To provide green and clean transportation for the masses, National Mission for Hybrid and Electric Vehicles will be launched in the year 2011 in collaboration with all stakeholders. Which of them is true? a. Only 1 b. Only 2 c. Both 1 & 2 d. None of the above 14) 21 year old Marjan Kalhor is the first Iranian woman to have entered an Olympic event. She is a participant in the 2010 Winter Olympics that began in Vancouver on 12 Feb 2010. Which sport is she associated with? a. Ski b. Shot put c. Cycling

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d. Bobsleigh 15) With his victory in the men’s large hill ski jump on 20 Feb 2010 at the Vancouver Olympics, he became the first person to win four individual gold ski jumping medals. Name this sportsperson. a. Simon Ammann (Switzerland) b. Ahonen Janne (Finland) c. Alexander Nicholas (USA) d. Bardal Anders (Norway) 16) The Indian Government in April 2011 issued a notice to which of the following companies to terminate licences for Kerala, West Bengal and Assam for delay in roll- out of services in these three circles? a. Sistema Shyam Teleservices b. Tata Teleservices c. Reliance d. BSNL 17) Which Italian luxury sports car makers on 6 April 2011 announced its entry into the Indian market where it will sell its high-performance cars priced between Rs1.20 crore and Rs1.43 crore? a. Maserati b. Bentley c. Aston Martin d. Maybach 18) Who did HDFC Bank, the country's second-largest private sector lender appoint in March 2011 to head its investment banking division?

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a. Rakesh Singh b. Charul Madan c. Gaurav Khungar d. Atul Singh 19) Gangaur, a festival which marks the union of Lord Shiva and his consort, Goddess Parvati is celebrated for 18 days from the day after Holi in which of the following Indian states? a. Rajasthan b. Karnataka c. Tamil Nadu d. Uttaranchal 20) Read the following statements with regard to the allocation in the Educational sector as proposed by Union Budget 2011-12. 1. For Sarva Siksha Abhiyan the allocation was increased by 40 percent to 21000 crore rupees. 2. All institutions of higher learning will be connected through optical fibers by March 2012. 3. 500 crore rupees was proposed to be provided for national skill development fund. 4. For the needy scheduled castes ad scheduled tribe candidates studying in class-IX and Xth prematric scholarship scheme was proposed to be introduced. Which of the above mentioned statements is not true? a. 1 b. 2 c. 3 & 4 d. 4

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21) Scientists recently developed a computer that could be controlled by the power of thought. It would help people unable to speak or move. What is the name of the technology which they used to develop this kind of computer? a. electrocortiography b. symbian C++ c. java d. flash lite 22) Which of the following companies bought the Pringles brand from Procter & Gamble Co for $1.5 billion? a. Diamond Foods Inc b. PepsiCo's Frito-Lay c. Emerald Nuts d. Kettle Potato Chips 23) Online marketplace eBay India, in association with leading apparel brand Reebok auctioned a bat autographed by Indian cricketer Mahendra Singh Dhoni. The proceeds of the auction will go to which of the following NGOs? a. Oxfem b. CRY c. All Bengal Women’s Union d. UNEM 24) Which Indian hockey player was in April 2011 named captain of the Indian Hockey team

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the upcoming Sultan Azlan Shah Cup scheduled to be played in Malaysia from 5-15 May 2011? a. Arjun Halappa b. Rajpal Singh c. Bharat Kumar Chetri d. Mohd. Amir Khan 25) Under the Godfrey Phillips Zonal Bravery Awards given away by the former ruler of Jodhpur, Gaj Singh in Jaipur on 5 April 2011, which of the following NGOs was honoured with the Amodhini Award of Rs.1 lakh? a. Udyogini b. Charities Aid Foundation c. CRY d. Akhil Bharatiya Vanavasi Kalyan Ashram 26) The Basic Customs Duty exemption was proposed to be extended to which of the following sectors? a. art and antiquities for exhibition or display in private art galleries b. Cinematographic film, factory-built ambulances c. syringes and needles d. agricultural machinery 27) A massive Tsunami caused by a devastating earthquake of the 8.9 magnitude hit about 400 km north-east of Tokyo, capital of Japan. Where is the Pacific Tsunami Warning System headquartered?

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a. Hawai b. Tokyo c. Manila d. Jakarta 28) Which of the following companies announced on 6 April 2011 that it won contract to provide broadband internet connectivity to Indian Railways through state-run RailTel Corp of India Ltd? a. DEL b. IBM c. Infosys d. HCL Infosystems 29) Which super luxury carmaker on 7 April 2011 unveiled Continental GT sedan in India? a. Ferrati b. Bentley c. Maybach d. Maserati 30) What amount of money was allocated for Bharat Nirman? a. 1000 crore b. 58000 crore c. 55438 crore d. 14362 crore 31) Who defeated Tamarine Tanasugarn on 15 Feb 2010 to retain the Pattaya Open title? a. Vera Zvonareva of Russia

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b. Sabine Lisicki of Germany, c. Ayumi Morita of Japan d. Kimiko Date Krumm of Japan 32) A massive Tsunami caused by a devastating earthquake of the 8.9 magnitude hit about 400 km north-east of Tokyo, capital of japan. What are the possible factors which can cause Tsunami? i) An Earthquake ii) A landslide iii) A volcanic eruption or explosion iv) Impact by a meteorite Please choose the right option a. i, ii, iii and iv b. i and ii only c. ii and iii only d. i and iv only 33) Which of the following Indian cricket is the most heavily insured player for the forthcoming Indian Premier League (IPL) 4 T-20 tournament which begins on 8 April 2011? a. Sachin Tendulkar b. Yuvraj Singh c. M S Dhoni d. Virender Sehwag 34) The Union Budget for 2011-12 proposed lowering of qualifying age for tax relief for senior

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citizens from 65 years to _? a. 55 b. 58 c. 60 d. 62 35) Finance Minister Pranab Mukherjee proposed to increase the Income Tax Exemption Limit for individual tax payers from 1 lakh 60 to _? a. 1 lakh 80 thousand b. 1 lakh 90 thousand c. 2 lakh d. 2 lakh 20 thousand 36) Noted Social worker Anna Hazare on 5 April 2011 started his hunger strike at Jantar Mantar in New Delhi to protest against the reported delay in bringing in which of the following bills to effectively deal with corruption? a. Lokpal Bill b. The Competition (Amendment) Bill c. The Airports Economic Regulatory Authority of India Bill d. The Appropriation (No.3 ) Bill 37) Who became the world number one badminton player? a. Saina Nehwal b. Wang Xin c. Sania Mirza d. Wang Shixian 38) When is the National Youth Day observed?

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a. January 14 b. February 14 c. August 31 d. January 12 39) What is Tejas? a. Spacecraft b. Missile c. Submarine d. Light combat aircraft 40) Who is the Chairperson of the Central Board Film Certification? a. Sharmila Tagore b. Karan Johar c. Nafisa Ali d. Om Puri e. None of these 41) Ali Akbar Salehi is the foreign minister of a. Israel b. Iran c. Afghanistan d. Indonesia 42) Who is the new chief of Research and Analysis Wing (RAW)? a. AP Singh b. Arun Shourie c. Sanjeev Tripathi d. BK Gupta

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43) According to an extensive genetic study on modern humans, two conclusions were drawn out. i) There is an enormous amount of diversity in the African hunter-gatherer populations. ii) The genetic diversity among 27 present-day African populations originated in southern Africa and progressed to northern Africa. Which of the above statements is/are correct? a. Both i and ii b. Neither I and ii c. Only i d. Only ii 44) Which one of the following Indian states recently released a Braille version of the RTI (Right to Information) Act and its rules for the benefit of visually challenged? a. Gujarat b. Bihar c. Haryana d. Madhya Pradesh 45) Roger Federer won his fourth Australian Open Tennis Championship and 16th Grand Slam on 31 Jan 2010. Who did he defeat in the final of the Australian Open 2010? a. Rafael Nadal b. Andy Murray c. Fred Perry

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d. Rod Laver 46) Which of the following Bollywood Actress won the Best Actress trophy at the 13th London Asian Film Festival for her performance in Onir’s I AM? a. Nandita Das b. Juhi Chawla c. Tabu d. Konkona Sen Sharma 47) In tiger census 2010, i) Pugmarks were used as the only indicator of tiger numbers. ii) An advanced Scientific process was adopted which included video trapping and use of satellite data. Which of the above statements is/are incorrect? Choose the right option: a. Only i is incorrect b. Only ii is incorrect c. Both i and ii are incorrect d. Both i and ii are not incorrect 48) India defeated Pakistan by 29 runs in the semi finals of the ICC World Cup 2011 played at Mohali. Who was declared man of the match of the high powered game? a. Saeed Ajmal b. Sachin Tendulkar c. Munaf Patel d. Wahab Riaz 49) Which of the following bodies put off indefinitely the new rules governing unwanted telemarketing calls which were supposed to be

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implemented from 21 March 2011? a. Department of Telecommunication (DoT) b. Telecom Regulatory Authority of India (TRAI) c. Indian Ministry of communication & Technology d. HRD Ministry 50) The Indian government in March 2011 conferred the Miniratna status on which of the following PSUs? a. National Small Industries Corporation (NSIC) b. Air India Charters Ltd c. Cement Corporation of India d. HMT Machine Tools Ltd Answers: 1) B 2) A 3) B 4) A 5) A 6) A 7) A 8) C 9) C 10) A 11) B 12) A 13) B 14) A 15) A 16) A 17) C 18) A 19) A 20) B 21) A 22) A 23) B 24) A 25) A 26) A 27) A 28) D 29) B 30) B 31) A 32) A 33) C 34)C 35) A 36) A 37) B 38) D 39) D 40) A 41) B 42) C 43) A 44) A 45) B 46) B 47) A 48) B 49) B 50) A

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IBPS GENERAL AWARENESS PRACTICE MODEL QUESTIONS

1.Michael D.Higgins replaced Mary McAleese as the President of which of the following countries? 1) Colombia 2) Ireland 3) Switzerland 4) Zimbabwe 5) Sweden Answer: (2) 2.Who is the author of the book 'I was There-Memoirs of a Cricket Administrator'? 1) Ajit Wadekar 2)Chandu Borde 3) Jaywant Lele 4) Kirti Azad 5) Sharad Pawar Answer: (3)

3.Devinder Pal Singh became the Chairman and Managing Director of which of the following banks in November 2011? 1) BOB 2) IOB 3) OBC 4) Punjab & Sind Bank

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5) Punjab National Bank Answer: (4) 4.Irom Sharmila Chanu's fast entered 12th year in November 2011. She is demanding the repeal of the Armed Forces (Special Powers) Act, 1958 in which of the following states? 1) Manipur 2) Nagaland 3) Tripura 4) West Bengal 5) Jammu & Kashmir Answer: (1) 5.Bhupen Hazarika, Dada Saheb Phalke award winner, passed away recently. He was a music legend from which of the following states? 1) Orissa 2) Assam 3) Bihar 4) Jharkhand 5) West Bengal Answer: (2) 6.Which city hosted the G20 Summit in November 2011? 1) Beijing 2) Toronto 3)Cannes 4) London 5) Seoul

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Answer: (3) 7.India signed an agreement to promote oil exploration in South China Sea with which of the following countries during its President Troung Tan Sang's visit to New Delhi in October 2011? 1) Myanmar 2) China 3) Cambodia 4) Vietnam 5) Thailand Answer: (4) 8.India's Polar Satellite Launch Vehicle(PSLV-C18)put VesselSat in orbit recently. Which country has built this satellite that will help in locating ships? 1) France 2) Luxembourg 3) USA 4) Germany 5) Russia Answer: (2) 9.Which of the following statements about the HDI is/are correct? 1)The Human Development Report (HDR) 2011, released by the United Nations Development Programme (UNDP), has ranked India at 134th among 187 countries in the Human Development Index (HDI). 2)Norway topped the list for the second consecutive year. Democratic Republic of the Congo is ranked the last.

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3)The HDI is a comparative measure of life expectancy, literacy and standards of living for countries worldwide. 4)The index was developed in 1990 by economists Mahbub ul Haq (Pakistan) and Amartya Sen (India). 5) All the above statements are correct. Answer: (5) 10.The Special Protection Group (SPG) is responsible for the protection of the Prime Minister of India. Who was appointed the new Director of the SPG in November 2011? 1) B.V.Wanchoo 2) K.Durga Prasad 3) S.Subramaniam 4) K.Aravind Rao 5) None of these Answer: (2) 11.The President of Myanmar visited India recently. His name? 1) U Thein Sein 2) U Aye Myint 3) Than Shwe 4) U Thant 5) None of these Answer: (1) 12.Which country will host the World Steel Conference in October 2012? 1) China 2) India

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3) Japan 4) USA 5) Australia Answer: (2) 13.The American computer scientist who created the C programming language passed away recently. His name? 1) Steve Jobs 2) Dennis Ritchie 3) Ken Thompson 4) Patrick Fischer 5) None of these Answer: (2) 14.Two former Presidents were awarded the 2011 World Food Prize for their success in tackling chronic hunger in their countries. One is Luiz Inacio Lula da Silva (Brazil) and the other is John Ag-yekum Kufuor. John Kufuor is the former President of which of the following African countries? 1) Sudan 2) Angola 3) Nigeria 4) Ghana 5) Ethiopia Answer: (4) 15.Which team won the Durand Cup football tournament in October 2011? (It is the oldest football tournament in India) 1) Churchill Brothers

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2) Prayag United 3) Mohun Bagan 4) Chirag United Kerala 5) None of these Answer: (1) 16.Indian-American Bobby Jindal has been re-elected to a second term as the Governor of which of the following states in the USA? 1) Texas 2) Louisiana 3) Alaska 4) California 5) South Carolina Answer: (2) 17.World Diabetes Day is observed every year on which of the following days? 1) October 31 2) November 19 3) November 21 4) November 14 5) November 9 Answer: (4) 18.Queen Elizabeth is the constitutional monarch of how many sovereign nations in the world? 1) 9 2) 16 3) 25

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4) 8 5) 11 Answer: (2) 19.Which country has test -fired nuclear capable Hatf-7 or Babur cruise missile with a range of 700 km? 1) Afghanistan 2) Pakistan 3) Iran 4) Syria 5) Iraq Answer: (2) 20.In the October 2011 Tunisian Constituent Assembly election, the first elections since the Tuni-sian Revolution, which party won 91 of the 217 assembly sea-ts, far more than any other party? 1) Ennahda 2) PDP 3) Ettakatol 4) Al Aridha 5) Congress for the Republic Answer: (1) 21.November 11 is celebrated as the National Education Day. It commemorates the birthday of which of the following eminent personalities? 1) S.Radhakrishnan 2) C.V.Raman 3) B.C.Roy

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4) A.P.J Abdul Kalam 5) Maulana Abul Kalam Azad Answer: (5) 22.Which country has unveiled the world's biggest and heaviest gold coin, weighing 1,012 kilograms? 1) USA 2) UK 3) Qatar 4) Australia 5) Saudi Arabia Answer: (4) 23.Which country has the world's largest uranium reserves (24% of the planet's known reserves)? 1) Australia 2) Russia 3) Namibia 4) Ukraine 5) Mongolia Answer: (1) 24.According to the latest Forbes India 100 richest persons list who is the world's richest Indian with a net worth of $ 22.60 billion? 1) Mukesh Ambani 2) Lakshmi Mittal 3) Azim Premji 4) Shashi Ruia & Ravi Ruia 5) Savitri Jindal

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Answer: (1) 25.Whose autobiography is titled "A Shot at History"? 1) Gagan Narang 2) Abhinav Bindra 3) Rahul Dravid 4) Manavjit Singh Sandhu 5) None of these Answer: (2) 26.Megha Tropiques, the satellite that studies the patterns and dynamics of the monsoon was launched from Sriharikota in October 2011. It is a joint venture between India and which of the following countries? 1) Spain 2) Greece 3) France 4) Portugal 5) USA Answer: (3) 27.Who was crowned the Miss World 2011 at the 61st edition of the Miss World pageant that was held in London in November 2011? 1) Ivian Sarcos (Venezuela) 2)Gwendoline Ruais (Philippines) 3) Amanda Perez (Puerto Rico) 4) Kanishtha Dhankhar (India) 5) None of these Answer: (1)

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28.Fed Cup is the premier team competition in women's tennis. Which country won the Fed Cup in November 2011? 1) Czech Republic 2) Russia 3) USA 4) Spain 5) Italy Answer: (1) 29.Which of the following statements is not true with regard to Census 2011? 1)Census 2011 is the 15th Natio-nal Census since 1872 and the 7th after indePendence. 2)The population of India is 121.01 crores compared to the 2001 population of 102.87 crores. (An increase by 181 million) 3)Uttar Pradesh is the most populous state with 19.95 crores while Sikkim is the least populated state (6.07 lakhs) 4)India is now home to 17.5 percent of the world's population-compared to China which hosts 19.4 percent. 5)The literacy rate has increased from 64.83 percent in 2001 to 70.04 percent in 2011. Answer: (5) 30. The Order of St. Andrew, Russia’s top medal was conferred on which of the following given personality recently? 1) Vladimir Putin 2) Dmitry Medvedev 3) Mikhail Gorbachev 4) Boris Yeltsin

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5) None Answer: (3)

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Moody’s cuts outlook on Indian banking system to negative

Moody's Investors Service has downgraded its outlook for India's banking system to negative from stable due to concerns that an increasingly challenging operating environment will adversely affect asset quality, capitalisation, and profitability. "India's economic momentum is slowing because of high inflation, monetary tightening, and rapidly rising interest rates. "At the same time, concerns have emerged over the sustainability of the recovery in the US and Europe, and the rise in the borrowing programme of the Indian Government, which could drain funds away from the private credit market," said Mr Vineet Gupta, Vice-President and Senior Analyst, Moody’s. The credit rating agency’s latest outlook for the Indian banking system is valid for the next 12-18 months. Given the tightening environment, Moody’s is anticipating that the asset quality will deteriorate over the next 12-18 months, thereby causing an increase in provisioning needs for the banks in FY2012 and FY2013. Loan growth, a stress on banks' capital The rating agency expects loan growth to be a strain on the banks' capital over the horizon of this outlook. As monetary conditions tighten and economic activities slow, it sees bank loan growth to fall to 16-18 per cent in FY2012 and FY2013, from 21 per cent in FY2011 Profitability to come under pressure

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When it comes to profitability, Moody’s expects it to come under pressure due to lower interest margins as deposit rates re-price and get a further push from the latest liberalisation on savings deposit rates. Bank ratings may come under downward pressure, although currently, the negative outlook on the banking system contrasts with the stable outlook assigned to the bank financial strength ratings of 14 of the 15 rated banks, said the agency in a statement. For those banks with weaker capital ratios on average and higher asset quality pressures, their standalone ratings are likely to come under pressure as underscored by Moody's downgrade of the State Bank of India's banking financial strength rating to ‘D+/Stable/Baa3’ from ‘C-/Stable/Baa2’ on October 4. But, on the positive side, Moody's has recognised Indian banks' stable customer deposit base and high level of Government securities holdings, which provide them with a resilient funding and liquidity profile that buffer them against destabilising shocks. Moody's also expects the Government to remain committed towards providing support to both public and 'private' banks. Such potential support translates to an average one-notch uplift to the banks' debt and deposit ratings to ‘Baa2’, compared with their standalone base line credit assessment of Baa3. Moody's rates 15 commercial banks in India, which together account for about 66 per cent of the banking system's total assets as at March 2011. The banking system is dominated by public-sector banks, which account for around 75 per cent of the market in asset terms. The weighted average stand-alone banking financial strength rating is ‘D+’, and mapping to a Baseline Credit Assessment of ‘Baa3’. The average long-term deposit rating is ‘Baa2/Prime-2’. 279

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Taxation system in India

India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax. Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land revenue and tax on professions are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc. In last 10-15 years, Indian taxation system has undergone tremendous reforms. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India. Since April 01, 2005, most of the State Governments in India have replaced sales tax with VAT.

Taxes Levied by Central Government Direct Taxes Tax on Corporate Income

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Capital Gains Tax Personal Income Tax Tax Incentives Double Taxation Avoidance Treaty Indirect Taxes Excise Duty Customs Duty Service Tax Securities Transaction Tax Taxes Levied by State Governments and Local Bodies Sales Tax/VAT Other Taxes Direct Taxes Taxes on Corporate Income Companies residents in India are taxed on their worldwide income arising from all sources in accordance with the provisions of the Income Tax Act. Non-resident corporations are essentially taxed on the income earned from a business connection in India or from other Indian sources. A corporation is deemed to be resident in India if it is incorporated in India or if it’s control and management is situated entirely in India. Domestic corporations are subject to tax at a basic rate of 35% and a 2.5% surcharge. Foreign corporations have a basic tax rate of

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40% and a 2.5% surcharge. In addition, an education cess at the rate of 2% on the tax payable is also charged. Corporates are subject to wealth tax at the rate of 1%, if the net wealth exceeds Rs.1.5 mn ( appox. $ 33333). Domestic corporations have to pay dividend distribution tax at the rate of 12.5%, however, such dividends received are exempt in the hands of recipients. Corporations also have to pay for Minimum Alternative Tax at 7.5% (plus surcharge and education cess) of book profit as tax, if the tax payable as per regular tax provisions is less than 7.5% of its book profits. Following measures were taken in the union budget 2007-08 Surcharge on income tax on all firms and companies with a taxable income of Rs.1 crore or less to be removed. A five year income tax holiday for two, three or four star hotels and for convention centres with a seating capacity of not less than 3,000; they should be completed and begin operations in National Capital Territory of Delhi or in the adjacent districts of Faridabad, Gurgaon, Ghaziabad or Gautam Budh Nagar during April 1, 2007 to March 31, 2010. Concession under section 35(2AB) to be extended for five more years until March 31, 2012.

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Tax holiday to undertakings in Jammu & Kashmir to be extended for another five years up to March 31, 2012. Minimum Alternate Tax (MAT) to be extended to income in respect of which deduction is claimed under sections 10A and 10B; deduction under section 36(1) (viii) to be restricted to 20% of profits each year. Rate of dividend distribution tax to be raised from 12.5% to 15% on dividends distributed by companies; and to 25% on dividends paid by money market mutual funds and liquid mutual funds to all investors. Expenditure on free samples and on displays to be excluded from the scope of Fringe Benefit Tax (FBT); ESOPs to be brought under FBT. An additional cess of 1% on all taxes to be levied to fund secondary education and higher education and the expansion of capacity by 54% for reservation for socially and educationally backward classes. Tax is payable on capital gains on sale of assets. Long-term Capital Gains Tax is charged if • Capital assets are held for more than three years and • In case of shares, securities listed on a recognized stock exchange in India, units of specified mutual funds, the period for holding is one year.

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Long-term capital gains are taxed at a basic rate of 20%. However, long-term capital gain from sale of equity shares or units of mutual funds are exempt from tax. Short-term capital gains are taxed at the normal corporate income tax rates. Short-term capital gains arising on the transfer of equity shares or units of mutual funds are taxed at a rate of 10%. Long-term and short-term capital losses are allowed to be carried forward for eight consecutive years. Long-term capital losses may be offset against taxable long-term capital gains and short-term capital losses may be offset against both long term and short-term taxable capital gains. Personal Income tax Personal income tax is levied by Central Government and is administered by Central Board of Direct taxes under Ministry of Finance in accordance with the provisions of the Income Tax Act. The rates for personal income tax are as follows:Income range (Rupee) Tax Rate (%) 0-100,000 Nil 1,00,000-1,50,000 10 1,50,000-2,50,000 20 2,50,000 and above 30

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Surcharges of 10% on total tax is levied if income exceeds Rs. 8,50,000 Recent budget initiatives in this regard are as follows: Threshold limit of exemption in the case of all assessees to be increased by Rs.10,000 thus giving every assessee a relief of Rs.1,000; in the case of a woman assessee, threshold limit to be increased from Rs.135,000 to Rs.145,000 and in case of a senior citizen from Rs.185,000 to Rs.195,000 giving him or her a relief of Rs.2,000; deduction in respect of medical insurance premium under section 80D to be increased to a maximum of Rs.15,000 and, in case of a senior citizen, a maximum of Rs.20,000. Rates of Withholding Tax Current rates for withholding tax for payment to non-residents are:(i) Interest 20% (ii) Dividends Dividends paid by domestic companies: Nil (iii) Royalties 10% (iv) Technical Services 10% (v) Any other services Individuals: 30% of the income Companies: 40% of the net income The above rates are general and are applicable in respect of countries with which India does not have a Double Taxation Avoidance Agreement (DTAA).

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Tax Incentives Government of India provides tax incentives for:• Corporate profit • Accelerated depreciation allowance • Deductibility of certain expenses subject to certain conditions. These tax incentives are, subject to specified conditions, available for new investment in • Infrastructure, • Power distribution, • Certain telecom services, • Undertakings developing or operating industrial parks or special economic zones, • Production or refining of mineral oil, • Companies carrying on R&D, • Developing housing projects, • Undertakings in certain hill states, • Handling of food grains, • Food processing, • Rural hospitals etc.

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Overview of Indian Financial System

Financial System of any country consists of financial markets, financial intermediation and financial instruments or financial products. This paper discusses the meaning of finance and Indian Financial System and focus on the financial markets, financial intermediaries and financial instruments. The brief review on various money market instruments are also covered in this study. The term "finance" in our simple understanding it is perceived as equivalent to 'Money'. We read about Money and banking in Economics, about Monetary Theory and Practice and about "Public Finance". But finance exactly is not money, it is the source of providing funds for a particular activity. Thus public finance does not mean the money with the Government, but it refers to sources of raising revenue for the activities and functions of a Government. Here some of the definitions of the word 'finance', both as a source and as an activity i.e. as a noun and a verb. The American Heritage® Dictionary of the English Language, Fourth Edition defines the term as under1:"The science of the management of money and other assets."; 2: "The management of money, banking, investments, and credit. "; 3: "finances Monetary resources; funds, especially those of a government or corporate body" 4: "The supplying of funds or capital." Finance as a function (i.e. verb) is defined by the same dictionary as under1:"To provide or raise the funds or capital for": financed a new car 2: "To supply funds to": financing a daughter through law school.

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3: "To furnish credit to". Another English Dictionary, "WordNet ® 1.6, © 1997Princeton University " defines the term as under1:"the commercial activity of providing funds and capital" 2: "the branch of economics that studies the management of money and other assets" 3: "the management of money and credit and banking and investments" The same dictionary also defines the term as a function in similar words as under1: "obtain or provide money for;" " Can we finance the addition to our home?" 2:"sell or provide on credit " All definitions listed above refer to finance as a source of funding an activity. In this respect providing or securing finance by itself is a distinct activity or function, which results in Financial Management, Financial Services and Financial Institutions. Finance therefore represents the resources by way funds needed for a particular activity. We thus speak of 'finance' only in relation to a proposed activity. Finance goes with commerce, business, banking etc. Finance is also referred to as "Funds" or "Capital", when referring to the financial needs of a corporate body. When we study finance as a subject for generalising its profile and attributes, we distinguish between 'personal finance" and "corporate finance" i.e. resources needed personally by an individual for his family and individual needs and resources needed by a business organization to carry on its functions intended for the achievement of its corporate goals. INDIAN FINANCIAL SYSTEM

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The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and household sector. While performing their activities these units will be placed in a surplus/deficit/balanced budgetary situations. There are areas or people with surplus funds and there are those with a deficit. A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. A Financial System is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities. Financial System;

The word "system", in the term "financial system", implies a set of complex and closely connected or interlined institutions, agents, practices, markets, transactions, claims, and liabilities in the economy. The financial system is concerned about money, credit and finance-the three terms are intimately related yet are somewhat different from each other. Indian financial system consists of financial market, financial instruments and financial intermediation. These are briefly discussed below; FINANCIAL MARKETS A Financial Market can be defined as the market in which financial assets are created or transferred. As against a real transaction that

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involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend. Money Market - The money market ifs a wholesale debt market for low-risk, highly-liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks and financial institutions. Capital Market - The capital market is designed to finance the long-term investments. The transactions taking place in this market will be for periods over a year. Forex Market - The Forex market deals with the multicurrency requirements, which are met by the exchange of currencies. Depending on the exchange rate that is applicable, the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe. Credit Market - Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to corporate and individuals. Constituents of a Financial System

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FINANCIAL INTERMEDIATION Having designed the instrument, the issuer should then ensure that these financial assets reach the ultimate investor in order to garner the requisite amount. When the borrower of funds approaches the financial market to raise funds, mere issue of securities will not suffice. Adequate information of the issue, issuer and the security should be passed on to take place. There should be a proper channel within the financial system to ensure such transfer. To serve this purpose, Financial intermediaries came into existence. Financial intermediation in the organized sector is conducted by a widerange of institutions functioning under the overall surveillance of the Reserve Bank of India. In the initial stages, the role of the intermediary was mostly related to ensure transfer of funds from the lender to the borrower. This service was offered by banks, FIs, brokers, and dealers. However, as the financial system widened along with the developments taking place in the financial markets, the scope of its operations also widened. Some of the important intermediaries operating ink the financial markets include; investment bankers, underwriters, stock exchanges, registrars, depositories, custodians, portfolio managers, mutual funds, financial

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advertisers financial consultants, primary dealers, satellite dealers, self regulatory organizations, etc. Though the markets are different, there may be a few intermediaries offering their services in move than one market e.g. underwriter. However, the services offered by them vary from one market to another. Intermediary Market Role Stock Exchange Capital Market Secondary Market to securities Corporate advisory Investment Bankers Capital Market, Credit services, Issue of Market securities Subscribe to Underwriters Capital Market, Money unsubscribed portion Market of securities Issue securities to the Registrars, investors on behalf of Depositories, Capital Market the company and Custodians handle share transfer activity Primary Dealers Satellite Dealers Money Market Market making in government securities Forex Dealers Forex Market Ensure exchange ink

currencies

FINANCIAL INSTRUMENTS Money Market Instruments The money market can be defined as a market for short-term money and financial assets that are near substitutes for money. The

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term short-term means generally a period upto one year and near substitutes to money is used to denote any financial asset which can be quickly converted into money with minimum transaction cost. Some of the important money market instruments are briefly discussed below; 1. Call/Notice Money 2. Treasury Bills 3. Term Money 4. Certificate of Deposit 5. Commercial Papers 1. Call /Notice-Money Market Call/Notice money is the money borrowed or lent on demand for a very short period. When money is borrowed or lent for a day, it is known as Call (Overnight) Money. Intervening holidays and/or Sunday are excluded for this purpose. Thus money, borrowed on a day and repaid on the next working day, (irrespective of the number of intervening holidays) is "Call Money". When money is borrowed or lent for more than a day and up to 14 days, it is "Notice Money". No collateral security is required to cover these transactions. 2. Inter-Bank Term Money Inter-bank market for deposits of maturity beyond 14 days is referred to as the term money market. The entry restrictions are the same as those for Call/Notice Money except that, as per existing regulations, the specified entities are not allowed to lend beyond 14 days. 3. Treasury Bills.

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Treasury Bills are short term (up to one year) borrowing instruments of the union government. It is an IOU of the Government. It is a promise by the Government to pay a stated sum after expiry of the stated period from the date of issue (14/91/182/364 days i.e. less than one year). They are issued at a discount to the face value, and on maturity the face value is paid to the holder. The rate of discount and the corresponding issue price are determined at each auction. 4. Certificate of Deposits Certificates of Deposit (CDs) is a negotiable money market instrument nd issued in dematerialised form or as a Usance Promissory Note, for funds deposited at a bank or other eligible financial institution for a specified time period. Guidelines for issue of CDs are presently governed by various directives issued by the Reserve Bank of India, as amended from time to time. CDs can be issued by (i) scheduled commercial banks excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs); and (ii) select all-India Financial Institutions that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI. Banks have the freedom to issue CDs depending on their requirements. An FI may issue CDs within the overall umbrella limit fixed by RBI, i.e., issue of CD together with other instruments viz., term money, term deposits, commercial papers and intercorporate deposits should not exceed 100 per cent of its net owned funds, as per the latest audited balance sheet. 5. Commercial Paper CP is a note in evidence of the debt obligation of the issuer. On issuing commercial paper the debt obligation is transformed into an instrument. CP is thus an unsecured promissory note privately placed with investors at a discount rate to face value determined by

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market forces. CP is freely negotiable by endorsement and delivery. A company shall be eligible to issue CP provided - (a) the tangible net worth of the company, as per the latest audited balance sheet, is not less than Rs. 4 crore; (b) the working capital (fund-based) limit of the company from the banking system is not less than Rs.4 crore and (c) the borrowal account of the company is classified as a Standard Asset by the financing bank/s. The minimum maturity period of CP is 7 days. The minimum credit rating shall be P-2 of CRISIL or such equivalent rating by other agencies. Capital Market Instruments The capital market generally consists of the following long term period i.e., more than one year period, financial instruments; In the equity segment Equity shares, preference shares, convertible preference shares, non-convertible preference shares etc and in the debt segment debentures, zero coupon bonds, deep discount bonds etc. Hybrid Instruments Hybrid instruments have both the features of equity and debenture. This kind of instruments is called as hybrid instruments. Examples are convertible debentures, warrants etc.

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Financial System in India

India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets, competition and various services sectors. In a number of sectors Government plays the role of regulator. Ministry of Finance, Government of India looks after financial sector in India. Finance Ministry every year presents annual budget on February 28 in the Parliament. The annual budget proposes changes in taxes, changes in government policy in almost all the sectors and budgetary and other allocations for all the Ministries of Government of India. The annual budget is passed by the Parliament after debate and takes the shape of law. Reserve bank of India (RBI) established in 1935 is the Central bank. RBI is regulator for financial and banking system, formulates monetary policy and prescribes exchange control norms. The Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934 authorize the RBI to regulate the banking sector in India. India has commercial banks, co-operative banks and regional rural banks. The commercial banking sector comprises of public sector banks, private banks and foreign banks. The public sector banks comprise the ‘State Bank of India’ and its seven associate banks and nineteen other banks owned by the government and account for almost three fourth of the banking sector. The Government of India has majority shares in these public sector banks.

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India has a two-tier structure of financial institutions with thirteen all India financial institutions and forty-six institutions at the state level. All India financial institutions comprise term-lending institutions, specialized institutions and investment institutions, including in insurance. State level institutions comprise of State Financial Institutions and State Industrial Development Corporations providing project finance, equipment leasing, corporate loans, short-term loans and bill discounting facilities to corporate. Government holds majority shares in these financial institutions. Non-banking Financial Institutions provide loans and hire-purchase finance, mostly for retail assets and are regulated by RBI. Insurance sector in India has been traditionally dominated by state owned Life Insurance Corporation and General Insurance Corporation and its four subsidiaries. Government of India has now allowed FDI in insurance sector up to 26%. Since then, a number of new joint venture private companies have entered into life and general insurance sectors and their share in the insurance market in rising. Insurance Development and Regulatory Authority (IRDA) is the regulatory authority in the insurance sector under the Insurance Development and Regulatory Authority Act, 1999. RBI also regulates foreign exchange under the Foreign Exchange Management Act (FERA). India has liberalized its foreign exchange controls. Rupee is freely convertible on current account. Rupee is also almost fully convertible on capital account for non-residents. Profits earned, dividends and proceeds out of the sale of

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investments are fully repatriable for FDI. There are restrictions on capital account for resident Indians for incomes earned in India. Securities and Exchange Board of India (SEBI) established under the Securities and Exchange aboard of India Act, 1992 is the regulatory authority for capital markets in India. India has 23 recognized stock exchanges that operate under government approved rules, bylaws and regulations. These exchanges constitute an organized market for securities issued by the central and state governments, public sector companies and public limited companies. The Stock Exchange, Mumbai and National Stock Exchange are the premier stock exchanges. Under the process of de-mutualization, these stock exchanges have been converted into companies now, in which brokers only hold minority share holding. In addition to the SEBI Act, the Securities Contracts (Regulation) Act, 1956 and the Companies Act, 1956 regulates the stock markets.

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STOCK EXCHANGE, COMMODITY EXCHANGE RELATED TERMS

Arbitration :Arbitration is an alternative dispute resolution mechanism provided by a stock exchange for resolving disputes between the trading members and their clients in respect of trades done on the exchange. Barcode Labelling :A Barcode is a printed code that consists of a series of vertical bars, which vary in thickness. Barcodes are capable of being ‘read’ and decoded by barcode scanners. They are used in various industries as application tools. They are used to identify retail sales items, identification cards, library books and other products. They are also utilised to manage work in progress, to track documents and for many other automated identification applications. Basis Point (bps) :One basis point is one-hundredth of a percentage point. Book Building :A process used to ascertain and record the indicative subscription bids of interested investors to a planned issue of securities. The advantages of this technique of obtaining advance feedback, are that it results in optimal pricing and removes uncertainty regarding mobilisation of funds. Book Value :-

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Book value is the net worth that comprises of equity capital plus reserves and surplus minus accumulated losses divided by the number of shares outstanding as rendered in the latest annual report of a company. The book value of an equity share tends to increase as the ratio of reserves and surplus to the paid-up equity capital increases. Calendar Spread :This is done between futures contracts. The investor buys the near month contract (ex. October gold) when prices rise or sell the positions in the near months and purchase the forward months contracts. This trading is popular in gold, soya, silver, crude, chana, urad, jeera and chilli. CDs :A Certificate of Deposit (CD) is a negotiable promissory note issued by the banks and the Financial Institutions (FIs) with a maturity date of upto a year. It is secure in nature and issued at a discount to the face value (the redemption to investors takes place at the face value). Collateralised Borrowings Lending Obligation (CBLO) :Collateralised Borrowings Lending Obligation (CBLO) is a money market instrument for borrowing against the securities, held in custody by the Clearing Corporation of India Limited (CCIL) for the amount lent. Commodity Exchange :Like stock exchanges in capital markets, a commodity exchange is an association or a company or any other body corporate that is organising futures trading in commodities. The new generation National-level exchanges have been set up in a

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corporatised/demutualised environment. There are three nationally recognised commodity exchanges in India and 22 regional exchanges. The National exchanges are Multi Commodities Exchange of India (MCX) in Mumbai, National Commodities and Derivatives Exchange of India (NCDEX) and National Multi Commodities Exchange (NMCE). Commodity: A commodity is a product having commercial value that can be produced, bought, sold and consumed. It is normally in a basic raw unprocessed state. But products derived from primary sector and structured products are also traded at these exchanges. In India, the list includes previous metals, ferrous and non-ferrous metals, spices, pulses, plantation crops, sugar and other soft commodities. Trading done in the Commodity Exchanges: Like the stock market online trading system, commodity exchanges are also typically on the online trading system. It is an order-driven, transparent trading platform, which is reachable to the various participants through the Internet, VSAT and leased line modes operated by members or sub-brokers spread around country. Demutualisation :It essentially means segregating the trading rights to member brokers from the ownership and management of the exchanges. It aims at curbing the clout of member-brokers in running the exchanges. Due Diligence :-

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An internal audit of a target firm by an acquiring firm. Offers are often made contingent upon resolution of the due dilengence process. Exchange Rate :Just as the price of any asset, the exchange rates is the price at which you can buy that currency. If at any given rate, the demand for a currency is greater (lesser) than its supply, its price will r ise (fall). What makes currency rates move ? The exchange rate reflects the strength of an economy in terms of its growth performance, balance of payments etc. as well as economic expectations that drive the ‘market sentiment’ and how much the market has reacted or ‘discounted’ the anticipated information. Are exchange rates entirely market-determined ? Under the current managed float regime, most currencies, including India, let their rates fluctuate according to market forces. But if a currency appears to be ‘overvalued’ or ‘undervalued’ by the market or if rate movements are significantly adversely affecting an economy’s macroeconomic performance, then Central banks intervene to depreciate (or appreciate) their currency. Exchange rates also move on expectations of change in regulations relating to exchange markets and official intervention. In India, the Reserve Bank’s basic philosophy is a flexible one, without any particular ‘target’ for the rupee’s rate. With a broad objective to avoid excessive volatility, facilitate growth of Indian exports and generate confidence among overseas investors. Futures contract :-

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Futures contract is an agreement between two parties to buy or sell a specified quantity and defined quality of a commodity at a certain time in future at a price agreed upon at the time of entering into the contract. This is typically traded at regulated commodity exchanges. Futures and options :A futures contract is an agreement between two parties to buy or sell an underlying asset at a certain time in the future at a certain price. It has a standardised date and month of delivery, quantity and price. An option gives the buyer the right but not the obligation to buy the underlying asset. A futures contract on the other hand is obligatory on both the buyer and the seller is a transaction between the buyer and seller to buy or sell an asset at an agreed price at a future date. This is a common feature of options trading in shares, stocks and commodities. Geographic Information Systems (GIS) :The GIS are computer systems used to store and process geographic data. The GIS scores over other data management systems in its ability to present spatial relationships in a digital map form that is easy to visualise and understand. Data is the central resource of a GIS system. The GIS systems process two kinds of data-spatial and attribute. Spatial data gives the geographic location of a point of interest (e.g. railway station, school, bank branch, the ATM etc). Attribute data contains other characteristics of that point of interest. Hot Money :-

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Money that moves across country borders in response to interest rate differences and that moves away when the interest rate differential disappears. Independent Director :An independent Director is a non-executive Director on the board of a company who has integrity, expertise and independence to balance the interests of the various stakeholders. The idea of having them is to bring objectivity to the board decisions and to protect general interests of the company, including that of the minority and the small shareholders. The independent Directors are expected to improve the corporate governance in a company. Who cannot be an independent Director in a listed company ? According to the SEBI, having a ‘pecuniary’ relationship with the company or its arms, other than receiving the Director’s remuneration, is a disqualification. The independent Director must not be related to the promoters or anyone in the senior management position from one level below the board. He should not have been an executive of the company or of its audit, consulting or legal firms in the past three financial years. Which listed entities are outside the scope of the revised Clause 49 ? The Clause will apply to the listed entities which are not companies but body corporates such as the private and the PSU banks, the Financial Institutions (FIs) and the insurance companies, only to the extent that it does not violate the laws governing them. Revised Clause 49 does not apply to mutual funds.

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Inter-exchange arbitrage :This is popular among liquid commodities like gold and silver, where the arbitrage can take place between the Indian exchanges and the foreign exchanges, where contract specifications are similar. Interest Rate Swaps (IRS) :Interest Rate Swaps (IRS) are Over-The-Counter (OTC) products that involve an exchange of cash flows between the two counter parties at pre-determined specifications wherein the fixed rate interest payments are exchanged for floating rate payments. Islamic Banking :It is banking practiced as per the Islamic principles as prescribed in the ‘shariah’ known as ‘Fiqh al-Muamalat’ (Islamic rules on transaction). The Islamic law prohibits interest on both the loans and the deposits. Interest is also called ‘riba’ in Islamic discourse. The argument against interest is that money is not good and profit should be earned on goods and services only and not on control of money itself. What are the different products offered ? Investment finance is offered by these banks through ‘Musharka’, where a bank participates as a Joint Venture (JV) partner in a project and shares the profits and losses. Investment finance is also offered through ‘Mudabha’, where the banks contribute the finance and the client provides the expertise, management and labour and the profits are shared in a pre-arranged proportion, while the loss is borne by the bank. Where is it practised ?

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Islamic banks have come into being since the early 70s. There are nearly 30 Islamic banks all over the world, from Africa, Europe to Asia and Australia and are regulated even within the conventional banking system. Kaizen :Kaizen comes from two words : Kai, which means ‘to change’ and zen, which means ‘good or for the better’. Together, the words mean continuous change for the better. It is not just a philosophy of the workplace, it also means continuously improving in every facet of life, including business, industry, commerce Government and diplomacy, among others. In full implementation, it becomes the foundation of all activities. Kaizen requires everyone in the organisation to be involved in the improvement process executives, management, supervisors and workers. Letter of Offer :A Letter of Offer is a document addressed to the shareholders of the target company containing disclosures of the acquirer/Persons Acting in Concert (PACs), target company, their financials, justification of the offer price, the offer price, number of shares to be acquired from the public, purpose of acquisition, future plans of acquirer, if any, regarding the target company, change in control over the target company, if any, the procedure to be followed by acquirer in accepting the shares tendered by the shareholders and the period within which all the formalities pertaining to the offer will be completed. Merchant Banker :An intermediary who provides various financial services, other than lending money, such as managing public issues, underwriting

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new issues, arranging loan syndications and giving advice on portfolio management, financial restructuring, mergers and acquisitions. Mid-cap stock :The name 'mid-cap' originates from the term medium capitalised. It is based on the market capitalisation of the stock. The National Stock Exchange (NSE) defines the mid-cap as stocks whose average six months' market capitalisation is between Rs.75 crore and Rs.750 crore. In the US, the midcap shares are those stocks that have a market capitalisation ranging from Rs.9,000 crore to Rs.45,000 crore. In India, these shares are classified as large-cap shares. MIFOR :MIFOR is an interest rate derivative, which is calculated by adding dollar London Interbank Offered Rate (LIBOR) rates with the rupee-dollar forward premia. The MIFOR rate is hence, the borrowing cost from overseas. It is utilised to hedge against the movement of global interest rates. LIBOR is the term money benchmark for the Euro-dollar market. Net worth :Net worth is the difference between the total assets and total liabilities. Participatory Notes (PNs) :Participatory Notes (PNs) are a derivative instrument issued by the FIIs to their overseas clients, who are not registered with the Indian regulators. Plea Bargaining

:-

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Plea Bargaining is the import of principles of contract into criminal law. Penny Stocks :Penny stocks is a term used to define cheaply available stocks of typically loss-making companies. Penny stock is used in the context of general equities. The stocks that typically sell for less than $1 share, although it may rise to as much as $10/share after the Initial Public Offering (IPO), usually because of heavy promotion. Podcasting :A term based on the name of Apple’s portable media player, allows customers to download audio and now video segments for free, to their computers and portable devices. Profit Booking :Selling shares when their prices have risen above their purchase price. Profit taking :Selling commodities, securities etc. at a profit, either after a market rise or because they show a profit at current levels but will not do so if an expected fall in prices occurs. Settlement :Settlement refers to the import of principles of contract into civil or administrative law. The Cash and Carry Arbitrage :This is the easiest form of arbitrage, where the investor has to buy the commodity in the spot market and sell it in the futures

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market. This is largely successful in gold and silver and is also popular among various agricultural commodities. The Price Earning ratio (P/E ratio) :The P/E ratio is the ratio between the Market Price of the Share (MPS) and the Earning Per Share (EPS). This ratio tells us how many times the market price of the shares is vis-à-vis its earning per share.

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IBPS CLERKS EXAM GENERAL STUDIES PRACTICE QUESTIONS

1. We read in the newspapers about the deregulation of the pricing of petroleum products by the Government of India. Consider the following outcomes of the above step: A This will make petroleum products prices cheaper and the pricing system will become more transparent. B. This will improve the financial health of the country's Oil Marketing Companies (OMCs) and contribute to fiscal consolidation C. This will end the subsidy on petroleum products. Which of the above statements holds correct? a. Only A b. Only B c. Only B and C d. Only A and C e. None of these 2. Which of the following committees has given its recommendations on "Financial inclusion"? a. Vaghul Committee b. Raghuram Rajan Committee c. Rakesh Mohan Committee d. Kelkar Committee e. None of these

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3. The agricultural census is done at which of the following intervals? a. There is no fixed term b. Every year c. Once in 3 years d. Once in 10 years e. Once in 5 years 4. Development of watershed and dry land farming is the part of which of the following points of the Twenty point Programe of the Government of India? a. Kisan Mitra b. Khadya Suraksha c. Garibi Hatao d. Jan Shakti e. None of these 5. The high rate growth of economy certainly reduces a. Gender inequalities b. Poverty c. Population of a county d. Flow of foreign investment e. None of these 6. In economic, it is generally believed that the main objective of a public sector financial company, like bank is to a. Employ more and more people b. Maximise total profits

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c. Maximise total production d. Provide financial services to the people across the country e. Sell goods at subsidized 7. Whenever the RBI does some Open Market Operation transaction, it actually wishes to regulate which of the following? a. Inflation only b. Liquidity in economy c. Borrowing powers of the banks d. Flow of foreign direct investment e. None of these 8. What is Repo Rate? a. It is the rate at which RBI sells government securities to banks. b. It is the rate at which banks borrow rupees from RBI. c. It is the rate at which RBI allows small loans in the market d. It is the rate which is offered by banks to their most valued customers or prime customers e. None of these 9. In a company, the use of price-sensitive corporate information by the company people to make gains or cover losses is known as a. Insider trading b. Future trading c. Foreign trading d. Stock trading e. None of these

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10. As per the instructions of the RBI, banks are required to give what percentage of their priority sector lending to weaker sections of the society? a.15% b.25% . c. 30% d. 35% e. 40% 11. The process of the total valuation of the financial assets of a company is technically known as ' : a. Market capitalization b. Gross Domestic Product c. Net wealth of the country d. Gross Domestic Resources e. None of these 12. Many a time, we read about rural indebtedness in various newspapers and magazines. What are the main causes of the rural indebtedness? A Poverty B. Inability to repay loans C. Zamindari System, which prevented farmers from owning the land a. Only A b. Only B

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c. Both A and B d. Only C e. All of these 13. Very often we read about Special Economic Zones (SEZs) in newspapers. What is the purpose of promoting SEZs in India? A. They are established to promote exports. B. They are established to attract investments from foreign countries. C They are established to help the poorest of the poor in India as the activities of these zones are reserved only for the poor and those living below the poverty line. a. Only A b. Only B c. Only C d. Only A and B e. None of these 14. Which of the following is the percentage up to which FDI in defence sector is allowed? a. 26% b.41% c. 31% d.49% e. None of these

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15. The maximum amount of the total revenue earned by the Government of India comes from a. Income Tax b. Customs Duty c. Excise Duty d. Value Added Tax e. Corporate Tax 16. Which public sector bank celebrated its Platinum Jubilee in late 2010? a. Dena Bank b. Bank of Maharashtra c. Bank of Baroda d. Canara Bank e. None of these 17. Which of the following is not among the six infrastructure industries that comprise the "Core Sector"? a. Crude oil b. Petroleum refinery products c. Chemicals and fertilizers d. Coal e. All the above 18. Who among the following will the chairperson of the committee set up by the RBI on "Customer Services in Banks"? a. YV Reddy

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b. Deepak Prakash c. M Damodaran d. Subbarao e. None of these 19. Which of the following is the full form of 'BRA" as used in banking industry? a. Brazilian and Russian Association b. Banking Restructuring Act c. Borrowing Risk Assessment d. Banking Regulation Act e. None of these 20. The Securities and Exchange Board of India has decided to allow _____ to visit SEBI Bhavan to help them learn about the capital market regulator. . a. Students b. Foreign investors c. Tourists d. Press d. Press e. None of these 21. Which state government has announced to undertake a detailed census of cancer patients in the state? a. Delhi b. Haryana c. Punjab d. Orissa

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e. None of these 22. The Central Government has revised wages of agricultural labourers under the Mahatma Gandhi National Rural Employment. The basic wage is revised once in a. 2 Years b. 3 Years c. 4 Years d. 5 Years e. None of these 23. Which of the following cannot be called a Debt Instrument as referred in financial transactions? a. Certificate of Deposits b. Bonds c. Stocks d. Commercial Papers e. Loans 24. Which of the following correctly describes sub-prime lending? A. Lending to people with less than ideal credit status B. Lending to people who are valued customers of the banks C. Lending to those who are not regular customers of a bank a. Only A b. Only B c. Only C d. Only A and B

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e. None of these 25. Which of the following services provided by a bank in India is not liable for taxation for Service Tax as per existing laws? a. Safe Deposit Lockers b. Merchant Banking Services c. Credit cards d. Discount earned on certain discounted bills e. None of these 26. For the revival of which of the following fertilizer units of the Fertilizer Corporation of India has the Steel Authority of India Limited been the given the go-ahead by the Cabinet Committee on Economic Affairs (CCEA) recently? a. Burnpur b. Sindri c. Rourkela d. Bhilai e. None of these 27. According to the latest figures released by the Commerce Ministry. What Is the percentage growth of India's exports durina 2010 -11? a.46.% b.45.7 % c. 52 % d. 56.9 %

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e. None of these 28. Telecom Commission, the apex decision-making body of the Department of Telecom has permitted Imposition of a uniform licence fee of _______ on all telecom operators. a. 6% b. 6.6% c. 8.5% d.10% e. None of these 29. Securities and Exchange Board of India (SEBI) has proposed to create regulations for alternative investment funds under the title 'SEBI (Alternative Investment Fund) Regulations'. With regard to this proposal, which of the following is/are not true? a. SEBI made it optional for all types of private pools of capital or investment funds to seek registration with SEBI. b. For PE funds, investments would be mainly in unlisted companies or companies proposed to be listed. c. For infrastructure equity funds, minimum half of the investment would, have to be in equity of infrastructure projects/companies. d. Only 1 and 2 e. None of these 30. Name the sports channel that has acquired the exclusive broadcast rights for Euro 2012 in the Indian subcontinent (India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives) for

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`100 crore. a. ESPN b. DD Sports c. Neo Sports d. Ten Sports e. None of these 31. NASA scientists have recently announced that they have found the first evidence of flowing water on which of the following planets. a. Mars b. Jupiter c. Mercury d. Venus e. None of these 32. Italy approved a draft law banning women from wearing veils in public. Besides Italy which of the following nations have banned women from wearing veil in public? a. India and Pakistan b. China and Afghanistan c. Belgium and France d. Bangladesh and Bhutan e. None of these 33. The Prime Ministers Economic Advisory Council headed by C Rangarajan has submitted its report on economy-"The Economic Outlook and the Review". Who among the following is not a

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member of it? a. Suman K Bery b. Dr Sumitra Chaudhary c. M Govinda Rao d. BB Bhattacharya e. Dr KP Krishnan 34. Which of the following departments of the Government of India has initiated the Public Bicycle Scheme for 10 cities under the Mission for Sustainable Habitat? a. Rural Development Ministry b. Urban Development Ministry c. Environment Ministry d. Surface Transport Ministry e. None of these 35. After allegations of bio-piracy complaints against US based multinational Monsanto with regard to Bt brinjal, for the hybrid research of which of the folio wing vegetable products is the National Biodiversity Authority of India (NBA) processing Monsanto's application? a. Cauliflower b. Bittergourd c. Cabbage d. Potato e. Onion

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36. Consider the following negative impacts on the Indian economy in the context of the ongoing US debt crisis: A. Adverse impact on Indian exports B. RBI will be forced to cut down interest rates C. FDI flow will slow down. a. Only A b. Only A and B c. Only A and C d. All A, B and C e. None of the above 37. Name the Indian executive in the global credit rating agency Standard and Poor's under whose leadership the decision of the historic credit downgrade of the United States was taken and later he was forced to step down. a. Sanjay Saini b. Karan Bhagat c. Rajat Gupta d. Devesh Sharma e. None of these 38. Who has written the book The Financial inclusion: Imperative and Sustainable Approaches?' a. Deepali Pant Joshi b. C Rangarajan c. M Damodaran d. Amartya Sen.

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e. None of these 39. Who is the author of the book Last Man In Tower? a. Jhumpa Lahiri b. Samit Basu c. Aravind Adiga d. Amit Chaudhary e. None of these 40. Goldman Sachs; citing improvement in macroeconomic situation, has recently upgraded India's rating from 'underweight' to a. Overweight b. Market weight c. In-line d. Underperformer e. Market outperformer 41. In which of the following states did the Sadar Hills District hood Demand Committee (SHDDC) recently impose an economic blockade in pursuance of their demand for a separate district? a. Manipur b. Meghalaya c. Tripura d. Assam e. Arunachal Pradesh 42. In which of the following public sector companies has the government recently offloaded its stake to mop up revenue to the

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tune of Rs.1,144 crores? a. Indian Oil Corporation b. Rashtriya Ispat Nigam Limited c. Power Finance Corporation d. Hindustan Copper e. None of these 43. What is the revenue target from disinvestment in Central public sector enterprises set in the Union Budget 2011-12? a. Rs. 40,000 crore b. Rs. 50,000 crore c. Rs. 70,000 crore d. Rs. 90,000 crore e. None of these 44. In which of the following Western countries did large scale rioting take place in predominantly African and Caribbean neighbourhoods recently? a. France b. Germany c. Italy d. England e. None of these 45. PC Alexander, who died recently, was a veteran a. Bureaucrat b. Nuclear scientist

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c. Educationist d. Environmentalist e. None of these 46. Who is the chairman of the National Commission for Scheduled Castes? a. Justice KG Balakrishnan b. Wajahat Habibullah c. Justice MN Rao d. PL Punia e. None of these 47. Justice Soumitra Sen, against whom impeachment proceedings have been initiated in the Parliament, is the judge of a. Sikkim High Court b. Kamataka High Court c. Calcutta High Court d. Guwahati High Court e. None of these 48. Name the chief of the three-member interlocution team on Kashmir which is to submit its report to the government shortly. a. NM Ansari b. Rdha Kumar c. Dileep Padgaonkar d. Karan Singh e. None of these

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49. Who is the author of the book Through the Corridors of Power: Insider Story? a. HNHaksar b. Brijesh Mishra c..CP Bhambhri d. Kuldip Nayar e. PC Alexander 50 Which of the following states provides the Vishwakarma Contributory Pension Scheme to the labourers of 20 trades of the unorganized sector? a. Uttar Pradesh b. Punjab c. Madhya Pradesh d. Bihar e..Rajasthan ANSWERS: 1. b a

2. b

3. e

4. a 5. b

6. d 7. b 8. b 9. a 10.

11. a 12. e 13. d 14. a 15. c 16. b 17. c 18. c 19. d 20. a 21. c 22. d 23. c 24. a 25. c 26. b 27. d 28. c 29. c 30. c

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31. a 32. c 33. d 34. b 35. e 36. c 37. d 38. a 39. c 40. b 41. a 42. c 43. a 44. d 45. a 46. d 47. c 48. c 49. e 50. e

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Human Development Report 2011

The 2011 Report—Sustainability and Equity: A Better Future for All—released by the United Nations Development Programme (UNDP) on November 2, 2011, notes that Norway, Australia and the Netherlands lead the world in the 2011 Human Development Index (HDI), while the Democratic Republic of the Congo, Niger and Burundi are at the bottom of the Human Development Report’s annual rankings of national achievement in health, education and income. The United States, New Zealand, Canada, Ireland, Liechtenstein, Germany and Sweden round out the top 10 countries in the 2011 HDI, but when the Index is adjusted for internal inequalities in health, education and income, some of the wealthiest nations drop out of the HDI’s top 20: the United States falls from #4 to #23, the Republic of Korea from #15 to #32, and Israel from #17 to #25. Gender Inequality Index ranks India at 129 and Inequality Adjusted HDI rank is 93. The 2011 HDI covers a record 187 countries and territories, up from 169 in 2010, reflecting in part improved data availability for many small island states of the Caribbean and the Pacific. The 2011 Report also notes that income distribution has worsened in most of the world, with Latin America remaining the most unequal region in income terms, even though several countries, including

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Brazil and Chile, are narrowing internal income gaps. Yet in overall IHDI terms, including life expectancy and schooling, Latin America is more equitable than sub-Saharan Africa or South Asia. To assess income distribution, as well as varying levels of life expectancy and schooling within national populations, the IHDI uses methodology developed by the renowned British economist Sir Anthony Barnes Atkinson. Average HDI levels have risen greatly since 1970—41 percent globally and 61 percent in today’s low-HDI countries—reflecting major overall gains in health, education and income. The 2011 HDI charts progress over five years to show recent national trends: 72 nations moved up in rank from 2006 to 2011, led by Cuba (+10 to #51), Venezuela and Tanzania (+7 each to #73 and #152, respectively), while another 72 fell in rank, including Kuwait (-8 to #63) and Finland (-7 to #22). The 10 countries that place last in the 2011 HDI are all in sub-Saharan Africa: Guinea, Central African Republic, Sierra Leone, Burkina Faso, Liberia, Chad, Mozambique, Burundi, Niger, and the Democratic Republic of the Congo. The Gender Inequality Index (GII) shows that Sweden leads the world in gender equality, as measured by this composite index of reproductive health, years of schooling, parliamentary representation, and participation in the labour market. Sweden is followed in the gender inequality rankings by the Netherlands, Denmark, Switzerland, Finland, Norway, Germany, Singapore,

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Iceland and France. Yemen ranks as the least equitable of the 146 countries in the GII, followed by Chad, Niger, Mali, Democratic Republic of the Congo, Afghanistan, Papua New Guinea, Liberia, Central African Republic and Sierra Leone. The Multi-dimensional Poverty Index (MPI) examines factors at the family level—such as access to clean water and cooking fuel and health services, as well as basic household goods and home construction standards—that together provide a fuller portrait of poverty than income measurements alone. Some 1.7 billion people in 109 countries lived in ‘multi-dimensional’ poverty in the decade ending in 2010, by the MPI calculus, or almost a third of the countries’ entire combined population of 5.5 billion. That compares to the 1.3 billion people estimated to live on US$1.25 a day or less, the measure used in the UN Millennium Development Goals, which seeks to eradicate “extreme” poverty by 2015. Niger has the highest share of multi-dimensionally poor, at 92 percent of the population, followed by Ethiopia and Mali, with 89 percent and 87 percent, respectively. The 10 poorest nations as measured by the MPI are all in sub-Saharan Africa. But the largest group of multi-dimensionally poor is South Asian: India, Pakistan and Bangladesh have some of the highest absolute numbers of MPI poor.

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India has by far the largest number of multi-dimensionally poor, according to the Report–612 million, more than half the country’s population, and larger than the total number of people measured according to the same criteria in all sub-Saharan countries. The MPI also provides insight into environmental problems in the poorest households, including indoor air pollution and disease from contaminated water supplies. The Report notes that in South Asia and sub-Saharan Africa, more than 90 percent of the multi-dimensionally poor cannot afford clean cooking fuel, relying principally on firewood, while some 85 percent lack basic sanitation services. The 2011 Human Development Report offers important new contributions to the global dialogue on this challenge, showing how sustainability is inextricably linked to basic questions of equity—that is, of fairness and social justice and of greater access to a better quality of life. Sustainability is not exclusively or even primarily an environmental issue, as the Report so persuasively argues. It is fundamentally about how we choose to live our lives, with an awareness that everything we do has consequences for the 7 billion of us here today, as well as for the billions more who will follow, for centuries to come. Understanding the links between environmental sustainability and equity is critical if we are to expand human freedoms for current and future generations. The remarkable progress in human development over recent decades, which the global Human Development Reports have documented, cannot continue without bold global

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steps to reduce both environmental risks and inequality. The Report identifies pathways for people, local communities, countries and the international community to promote environmental sustainability and equity in mutually reinforcing ways. In the 176 countries and territories where the United Nations Development Programme is working every day, many disadvantaged people carry a double burden of deprivation. They are more vulnerable to the wider effects of environmental degradation, because of more severe stresses and fewer coping tools. They must also deal with threats to their immediate environment from indoor air pollution, dirty water and unimproved sanitation. Forecasts suggest that continuing failure to reduce the grave environmental risks and deepening social inequalities threatens to slow decades of sustained progress by the world’s poor majority—and even to reverse the global convergence in human development. Major disparities in power shape these patterns. New analysis shows how power imbalances and gender inequalities at the national level are linked to reduced access to clean water and improved sanitation, land degradation and deaths due to indoor and outdoor air pollution, amplifying the effects associated with income disparities. Gender inequalities also interact with environmental outcomes and make them worse. At the global level governance arrangements often weaken the voices of developing countries and exclude marginalized groups. Yet, there are alternatives to inequality and un-sustainability.

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Growth driven by fossil fuel consumption is not a prerequisite for a better life in broader human development terms. Investments that improve equity—in access, for example, to renewable energy, water and sanitation, and reproductive healthcare—could advance both sustainability and human development. Stronger accountability and democratic processes, in part through support for an active civil society and media, can also improve outcomes. Successful approaches rely on community management, inclusive institutions that pay particular attention to disadvantaged groups, and cross-cutting approaches that coordinate budgets and mechanisms across government agencies and development partners. The financing needed for development—including for environmental and social protection— will have to be many times greater than current official development assistance. Today’s spending on low-carbon energy sources, for example, is only 1.6 percent of even the lowest estimate of need, while spending on climate change adaptation and mitigation is around 11 percent of estimated need. Hope rests on new climate finance. While market mechanisms and private funding will be vital, they must be supported and leveraged by proactive public investment. Beyond raising new sources of funds to address pressing environmental threats equitably, the Report advocates reforms that promote equity and voice. Financing flows need to be channelled towards the critical challenges of un-sustainability and inequity— and not exacerbate existing disparities. Human development, which is about expanding people’s choices, builds on shared natural resources. Promoting human development

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requires addressing sustainability—locally, nationally and globally—and this can and should be done in ways that are equitable and empowering, says the Report. The environmental disaster scenario leads to a turning point before 2050 in developing countries—their convergence with rich countries in HDI achievements begins to reverse. These projections suggest that in many cases the most disadvantaged people bear and will continue to bear the repercussions of environmental deterioration, even if they contribute little to the problem. For example, low HDI countries have contributed the least to global climate change, but they have experienced the greatest loss in rainfall and the greatest increase in its variability, with implications for agricultural production and livelihoods. Around the world rising HDI has been associated with environmental degradation. Countries with faster improvements in the HDI have also experienced faster increases in carbon dioxide emissions per capita. These changes over time—rather than the snapshot relationship—highlight what to expect tomorrow as a result of development today. On the other hand, while incomes and economic growth have an important explanatory role for emissions, the relationship is not deterministic. And complex interactions of broader forces change the risk patterns. For example, international trade allows countries to outsource the production of goods that degrade the environment; large-scale commercial use of natural resources has different impacts than subsistence exploitation; and urban and rural

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environmental profiles differ. Several countries have achieved significant progress both in the HDI and in equity and environmental sustainability. Sweden is notable for its high reforestation rate compared with regional and global averages. More generally, however, environmental trends over recent decades show deterioration on several fronts, with adverse repercussions for human development, especially for the millions of people who depend directly on natural resources for their livelihoods. Globally, nearly 40 percent of land is degraded due to soil erosion, reduced fertility and overgrazing. Land productivity is declining, with estimated yield loss as high as 50 percent in the most adverse scenarios. Agriculture accounts for 70–85 percent of water use, and an estimated 20 percent of global grain production uses water un-sustainably, imperilling future agricultural growth. Deforestation is a major challenge. Between 1990 and 2010, Latin America and the Caribbean and Sub-Saharan Africa experienced the greatest forest losses, followed by the Arab States. The other regions have seen minor gains in forest cover. Desertification threatens the dry-lands that are home to about a third of the world’s people. Some areas are particularly vulnerable—notably Sub-Saharan Africa, where the dry-lands are highly sensitive and adaptive capacity is low. Adverse environmental factors are expected to boost world food prices 30–50 percent in real terms in the coming decades and to

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increase price volatility, with harsh repercussions for poor households. The largest risks are faced by the 1.3 billion people involved in agriculture, fishing, forestry, hunting and gathering. To the extent that women in poor countries are disproportionately involved in subsistence farming and water collection, they face greater adverse consequences of environmental degradation. Many indigenous peoples also rely heavily on natural resources and live in ecosystems especially vulnerable to the effects of climate change, such as small, island developing States, arctic regions and high altitudes. Evidence suggests that traditional practices can protect natural resources, yet such knowledge is often overlooked or downplayed. The effects of climate change on farmers’ livelihoods depend on the crop, region and season, underlining the importance of in-depth, local analysis. Impacts will also differ depending on household production and consumption patterns, access to resources, poverty levels and ability to cope. Taken together, however, the net biophysical impacts of climate change on irrigated and rain-fed crops by 2050 will likely be negative—and worst in low HDI countries. The MPI measures serious deficits in health, education and living standards, looking at both the number of deprived people and the intensity of their deprivations. This year the report explores the pervasiveness of environmental deprivations among the multi-dimensionally poor and their overlaps at the household level, an innovation in the MPI.

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The poverty-focused lens allows us to examine environmental deprivations in access to modern cooking fuel, clean water and basic sanitation, the report says. These absolute deprivations, important in themselves, are major violations of human rights. Ending these deprivations could increase higher order capabilities, expanding people’s choices and advancing human development. In developing countries at least 6 people in 10 experience one of these environmental deprivations, and 4 in 10 experience two or more. These deprivations are especially acute among multi-dimensionally poor people, more than 9 in 10 of whom experience at least one. Most suffer overlapping deprivations: 8 in 10 multi-dimensionally poor people have two or more, and nearly 1 in 3 (29 percent) is deprived in all three. These environmental deprivations disproportionately contribute to multi-dimensional poverty, accounting for 20 percent of the MPI—above their 17 percent weight in the index. Across most developing countries deprivations are highest in access to cooking fuel, though lack of water is paramount in several Arab States. Countries with the lowest share of poor people facing at least one deprivation are mainly in the Arab States and Latin American and the Caribbean (7 of the top 10). Of the countries with the fewest multi-dimensionally poor people with all three environmental deprivations, better performers are concentrated in South Asia—5 of the top 10. Several South Asian countries have reduced some environmental deprivations, notably access to potable water, even as other deprivations have remained severe. And five countries are

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in both top 10 lists—not only is their environmental poverty relatively low, it is also less intense. The disease burden arising from indoor and outdoor air pollution, dirty water and unimproved sanitation is greatest for people in poor countries, especially for deprived groups. Indoor air pollution kills 11 times more people living in low HDI countries than people elsewhere. Disadvantaged groups in low, medium and high HDI countries face greater risk from outdoor air pollution because of both higher exposure and greater vulnerability. In low HDI countries more than 6 people in 10 lack ready access to improved water, while nearly 4 in 10 lack sanitary toilets, contributing to both disease and malnourishment. Climate change threatens to worsen these disparities through the spread of tropical diseases such as malaria and dengue fever and through declining crop yields. Despite near universal primary school enrolment in many parts of the world, gaps remain. Nearly 3 in 10 children of primary school age in low HDI countries are not even enrolled in primary school, and multiple constraints, some environmental, persist even for enrolled children. Lack of electricity, for example, has both direct and indirect effects. Electricity access can enable better lighting, allowing increased study time, as well as the use of modern stoves, reducing time spent collecting fuel wood and water, activities shown to slow education progress and lower school enrolment. Girls are more often adversely affected because they are more likely to combine resource collection and schooling. Access to clean water and improved sanitation is also especially important for girls’

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education, affording them health gains, time savings and privacy. Household environmental deprivations can coincide with wider environmental stresses, constricting people’s choices in a wide range of contexts and making it harder to earn a living from natural resources: people have to work more to achieve the same returns or may even have to migrate to escape environmental degradation. Environmental stress has also been linked to an increased likelihood of conflict. The link is not direct, however, and is influenced by the broader political economy and contextual factors that make individuals, communities and society vulnerable to the effects of environmental degradation. The Gender Inequality Index (GII), updated this year for 145 countries, shows how reproductive health constraints contribute to gender inequality. This is important because in countries where effective control of reproduction is universal, women have fewer children, with attendant gains for maternal and child health and reduced greenhouse gas emissions. For instance, in Cuba, Mauritius, Thailand and Tunisia, where reproductive healthcare and contraceptives are readily available, fertility rates are below two births per woman. But substantial unmet need persists worldwide, and evidence suggests that if all women could exercise reproductive choice, population growth would slow enough to bring greenhouse gas emissions below current levels. Meeting unmet need for family planning by 2050 would lower the world’s carbon emissions an estimated 17 percent below what they

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are today. The GII also focuses on women’s participation in political decision-making, highlighting that women lag behind men across the world, especially in Sub-Saharan Africa, South Asia and the Arab States. This has important implications for sustainability and equity. Because women often shoulder the heaviest burden of resource collection and are the most exposed to indoor air pollution, they are often more affected than men by decisions related to natural resources. Recent studies reveal that not only is women’s participation important but also how they participate—and how much. And because women often show more concern for the environment, support pro-environmental policies and vote for pro-environmental leaders, their greater involvement in politics and in non-governmental organizations could result in environmental gains, with multiplier effects across all the Millennium Development Goals. These arguments are not new, but they reaffirm the value of expanding women’s effective freedoms. Thus, women’s participation in decision-making has both intrinsic value and instrumental importance in addressing equity and environmental degradation. Evidence is accumulating that power inequalities, mediated through political institutions, affect environmental outcomes in a range of countries and contexts. This means that poor people and other

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disadvantaged groups disproportionately suffer the effects of environmental degradation. New analysis for the Report covering some 100 countries confirms that greater equity in power distribution, broadly defined, is positively associated with better environmental outcomes, including better access to water, less land degradation and fewer deaths due to indoor and outdoor air pollution and dirty water—suggesting an important scope for positive synergies. The large disparities across people, groups and countries that add to the large and growing environmental threats pose massive policy challenges. But there is cause for optimism. In many respects the conditions today are more conducive to progress than ever—given innovative policies and initiatives in some parts of the world. Taking the debate further entails bold thinking, especially on the eve of the UN Conference on Sustainable Development (Rio+20) and the dawn of the post-2015 era. The Report advances a new vision for promoting human development through the joint lens of sustainability and equity. A key theme of the Report is the need to fully integrate equity concerns into policies that affect the environment. Traditional methods of assessing environmental policies fall short. They might expose the impacts on the path of future emissions, for example, but they are often silent on distributive issues. Even when the effects on different groups are considered, attention is typically restricted to people’s incomes. The importance of equity and inclusion is already explicit in the objectives of green economy policies. The report proposes taking the agenda further.

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Embedding environmental rights in national constitutions and legislation can be effective, not least by empowering citizens to protect such rights. At least 120 countries have constitutions that address environmental norms. And many countries without explicit environmental rights interpret general constitutional provisions for individual rights to include a fundamental right to a healthy environment. Constitutionally recognizing equal rights to a healthy environment promotes equity by no longer limiting access to those who can afford it. And embodying this right in the legal framework can affect government priorities and resource allocations. Alongside legal recognition of equal rights to a healthy, well functioning environment is the need for enabling institutions, including a fair and independent judiciary, and the right to information from governments and corporations. The international community, too, increasingly recognizes a right to environmental information. Where governments are responsive to popular concerns, change is more likely. An environment in which civil society thrives also engenders accountability at the local, national and global levels, while freedom of press is vital in raising awareness and facilitating public participation. The Report proposes an emphasis on four country-level sets of tools to take this agenda forward:

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• Low-emission, climate-resilient strategies—to align human development, equity and climate change goals. • Public-private partnerships—to catalyse capital from businesses and households. • Climate deal-flow facilities—to bring about equitable access to international public finance. • Coordinated implementation and monitoring, reporting and verification systems—to bring about long-term, efficient results and accountability to local populations as well as partners. Finally, it calls for a high-profile, global Universal Energy Access Initiative with advocacy and awareness and dedicated support to developing clean energy at the country level. Such an initiative could kick-start efforts to shift from incremental to transformative change. The Report casts light on the links between sustainability and equity and shows how human development can become more sustainable and more equitable. It reveals how environmental degradation hurts poor and vulnerable groups more than others.

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GENERAL AWARENESS MCQs FOR BANK EXAMS

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 percent— (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

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(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

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(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

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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)

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(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

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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

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(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

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(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

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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)

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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)

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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

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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

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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 ?

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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

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(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

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(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

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(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

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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

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(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

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Ans : (A)

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IBPS GENERAL AWARENESS SOLVED QUESTIONS

1. Which of the following statements about CHOGM 2011 is/are true? 1) The Commonwealth Heads of Government Meeting 2011, commonly known as CHOGM 2011, was held in Perth, Australia in October 2011. 2) The 22nd Meeting of the Heads of Government of the Commonwealth of Nations was chaired by Julia Gillard, the Prime Minister of Australia. 3) Hamid Ansari, the Vice President, represented India at the Summit. 4) Canadian Prime Minister Stephen Harper had threatened to boycott the 2013 CHOGM, to be held in Sri Lanka, if allegations of human rights abuses against the country's Tamil minority were not investigated. 5) All the statements are correct.

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2. Muammar Qadhafi was killed in October 2011 in his hometown Sirte. He was the former leader of which of the following countries? 1) Tunisia 2) Egypt 3) Syria 4) Libya 5) Yemen 3. The Election Commission has disqualified Umlesh Yadav, an MLA from Uttar Pradesh, from contesting again for three years for suppressing expenditure (the amount spent for issuing the advertisements) in her election accounts. She is the first political victim of the paid news phenomenon. She was elected from which of the following political parties? 1) Rashtriya Janata Dal 2) Samajwadi Party 3) Rashtriya Parivartan Dal 4) Bharatiya Janata Party 5) Bahujan Samaj Party 4. Alain Juppe visited India in October 2011. He is the Minister for Foreign Affairs of which of the following countries? 1) Germany 2) Italy 3) United Kingdom 4) France 5) Spain

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5. M.K.Mani has been honoured with the 40th Dhanvantari Award. In which of the following fields is this prestigious award given annually? 1) Print Journalism 2) Cinema 3) Architecture 4) Medical Science 5) Literature 6. The South India's first metro rail service was started in which of the following cities in October 2011? 1) Chennai 2) Bangalore 3) Hyderabad 4) Cochin 5) None of these 7. Who is the Chairman of the Prime Minister's Economic Advisory Council (PMEAC)? 1) Bimal Jalan 2) Suresh Tendulkar 3) C.Rangarajan 4) Y.V.Reddy 5) Montek Singh Ahluwalia 8. Shakti-2011 is a joint army exercise between India and which of the following countries? (It was conducted in Uttarakhand in October 2011) 1) Sri Lanka

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2) France 3) USA 4) China 5) Philippines 9. Who won the National Chess title in Aurangabad in October 2011? 1) Abhijeet Gupta 2) Deepan Chakkravarthy 3) S.P.Sethuraman 4) M.R.Venkatesh 5) Vidit Gujarathi 10. Who has been honoured with the Presidential Citizens Medal by U.S. President Barack Obama for her courage in overcoming and speaking out against domestic abuse in the Indian-American community? 1) Kavya Lahiri 2) Vijaya Emani 3) Kalpana Sen 4) Anuradha Sen 5) None of these 11. Which English cricketer is the author of the book 'The Breaks are off-My Autobiography'? 1) Kevin Pietersen 2) Graeme Swann 3) Alastair Cook 4) Ian Bell

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5) Andrew Strauss 12. Who made history by winning the inaugural Formula One Indian Grand Prix at the Buddh International Circuit in Greater Noida in October 2011? 1) Sebastian Vettel 2) Jenson Button 3) Fernando Alonso 4) Mark Webber 5) Michael Schumacher 13. Who was re-appointed the Commonwealth Secretary- General for four more years in October 2011? 1) Don McKinnon 2) Arnold Smith 3) Kamalesh Sharma 4) Shridath Ramphal 5) None 14. Who received "The Hindu Lite-rary Prize for Best Fiction 2011" for his/her debut novel "The Sly Company of People Who Care" in October 2011? 1) N.S.Madhavan 2) Rahul Bhattacharya 3) Amitav Ghosh 4) Anuradha Roy 5) None 15. Who is the author of the book 'The TCS Story…and Beyond'?

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1) Ratan Tata 2) N.Chandrasekaran 3) S.Ramadorai 4) N.R.Narayana Murty 5) Nandan Nilekani 16. The National Development Council (NDC) meeting was held in New Delhi recently. Who is the Chairman of the NDC? 1) Manmohan Singh 2) P.Chidambaram 3) Pranab Mukherjee 4) Sonia Gandhi 5) Montek Singh Ahluwalia 17. Jigme Khesar Namgyel Wangchuck visited India recently. He is the king of which of the following countries? 1) Nepal 2) Mauritius 3) Thailand 4) Bhutan 5) None of these 18. New Zealand won the Rugby World Cup in October 2011 after defeating which of the following countries in the final held in Auckland, New Zealand? 1) USA 2) UK 3) Canada 4) Australia

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5) France 19. Ellen Johnson Sirleaf is one of the three recipients of the Nobel Peace Prize for 2011. She is the President of which of the following countries? 1) Yemen 2) Liberia 3) Rwanda 4) Sudan 5) Kenya 20. Who is considered as the father of the white revolution in India? 1) M.S.Swaminathan 2) H.G. Khorana 3) U.R.Rao 4) Verghese Kurien 5) None 21. Which of the following terms is used in the game of hockey? 1) Deuce 2) Penalty Corner 3) LBW 4) No Ball 5) Back Hand 22. Which city hosted the 5th IBSA Summit in October 2011? 1) Cape Town 2) Durban 3) Pretoria

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4) Johannesburg 5) Bloemfontein 23. Who among the following leaders did not attend the IBSA Summit in October 2011? 1) Dilma Rousseff 2) Jacob Zuma 3) Manmohan Singh 4) Dmitri Medvedev 5) None of these 24. Who among as following has been elected the President of Kyrgyzstan? (He is the present Prime Minister) 1) Adakhan Madumarov 2) Kamchibek Tashiyev 3) Almazbek Atambayev 4) Nursultan Nazarbayev 5) None of these 25. Who was presented the Indira Gandhi Award for National Integration 2010 for his yeoman service in promoting and preserving the spirit of national integration on October 31, 2011, the death anniversary of Indira Gandhi? 1) Vijay Darda 2) Mohan Dharia 3) Jaipal Reddy 4) Pranab Mukherjee 5) A.K.Antony

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26. Who headed the Committee on direct transfer of subsidies on Kerosene, LPG and Fertilizers to the beneficiaries? 1) Manmohan Singh 2) Pranab Mukherjee 3) C.Rangarajan 4) Nandan Nilekani 5) Montek Singh Ahluwalia 27. Which of the following programmes launched by the Government of India aims at enhancing the Livelihood security of the people in rural areas by guaranteeing hundred days of employment in a financial year to a rural household? 1) JNNURM 2) ASHA 3) Kutir Jyoyhi 4) Bharat Nirman 5) MGNREGS 28. Which of the following is the period of the first Five Year Plan in India? 1) 1950-55 2) 1947-52 3) 1951-56 4) 1948-53 5) None of these 29. What is the name of the scheme that was launched by the Government of India for adolescent girls in November 2010? 1) ASHA

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2) Swabhiman 3) Swawalamban 4) SABALA 5) Aadhar 30. PIIGS is an acronym for nations of which of the following continents? 1) Asia 2) Africa 3) Europe 4)South America 5) North America 31. Who among the following has never worked as RBI Governor? 1) C.Rangarajan 2) Bimal Jalan 3) Manmohan Singh 4) L.K.Jha 5) Yashwant Sinha 32. Which bank has taken over the Centurion Bank of Punjab? 1) ICICI Bank 2) HDFC Bank 3) IDBI Bank 4) AXIS Bank 5) OBC 33. Which country is considered as the pioneer of Micro Finance? 1) India

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2) Pakistan 3) Bangladesh 4) Sri Lanka 5) China Answers 1) 5 2) 4 3) 3 4) 4 5) 4 6) 2 7) 3 8) 2 9) 1 10) 2 11) 2 12) 1 13) 3 14) 2 15) 3 16) 1 17) 4 18) 5 19) 2 20) 4 21) 2 22) 3 23) 4 24) 3 25) 2 26) 4 27) 5 28) 3 29) 4 30) 3 31) 5 32) 2 33) 3

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IBPS GENERAL AWARENESS PRACTICE QUESTIONS

1. Which of the following teams won this season’s Indian Premier League (IPL) cricket cup? a) Royal Challengers Bengalore b) Mumbai Indians c) Kolkata Knight Riders d) Deccan Chargers e) Chennai Super Kings 2. In the run-up to the free trade agreement between India and the European Union (EU), which of the following subjects has the EU taken up with the World Trade Organisation (WTO) pressing for its inclusion much to India’s discomfort? a) Farm goods b) Defence articles c) Intellectual Property Rights

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d) Visa norms e) Industrial goods 3. Which of the following cities has been declared as the costliest city in the world? a) Kobe b) Paris c) Zurich d) Oslo e) Tokyo 4. What is the Minimum Support Price (MSP) per quintal fixed by the Centre for wheat for the season 2010-11? a) Rs. 1,000 b) Rs.1,100 c) Rs.1,200 d) Rs.1,300 e) Rs.1,250 5.Who is to take over as non-executive chairman of India’s second larges IT company, Infosys, when the incumbent chairman NR Narayana Murthy retires in August this year? a) KV Kamath b) Amit Mitra c) Renuka Ramnath d) Samidha Sharma e) Vinita Bali

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6 In which of the following countries has Tata Motors launched its Nano cars, touted to be the cheapest car of the world, for the first time outside India? A) Sri Lanka B) Nepal C) Malaysia D) Indonesia a) Only (B) b) Only (A) Indonesia c) Only (C) d) Only (A), (B) and (D) e) None of these 7. Which f the following business ownership structure companies has been given green signal by the stock market regulator, SEBI, to get membership of stock exchanges and make brokers? a) Sole proprietorship companies b) Limited liability companies c) Non-profit organizations d) Cooperative companies e) None of these 8.Which of the following teams has won the Santosh Trophy football tournament? a) Manipur b) Delhi c) Haryana d) West Bengal e) Madhya Pradesh

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9.With which of the trading partners do Indian farm goods face market access problems on the grounds of arbitrary SPS (Sanitary and Phyto-Sanitary) standards and CCC (chemical residues)? a) US b) ASEAN c) SAARC d) EU e) Japan 10.Indian Railways is to construct the longest tunnel (11km long) on its network in the under-construction railway segments of a) Indo-Burma rail project b) West Coast Railways of India c) Katra-Qazigund Pir Panjal Tunnel d) Arunachal railway project e) Gangtok - Siliguri railway project 11. There has been stalemate in the drafting committee of Lokpal Bill between the civil activists and political leader over the contents of he Bill. Which of the following are the major bones of contention between the two sides? I. Inclusion of the office of the Prime Minister under anti-corruption watchdog II. Bringing higher judiciary under the purview of Lokpal III. Bringing the office of the Chief Ministers under Lokpal. IV. In camera monitoring of the activities of MPs in Parliament.

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a) Only I and II b) Only IV c) Only I, II and IV d) All the above e) None of these 12. Which of the following teams has recently won the Champions Leagues final at Wembley in London? a) Manchester United b) Barcelona c) Real Madrid d) AC Milan e) Chelsea FC 13.Which of the following countries has recently decided to phase out all it nuclear power plants by 2022? a) Japan b) Italy c) Ukraine d) Germany e) Spain 14.Who has been honoured with the prestigious Jawaharlal Nehru Award for International Understanding for 2009? a) Angela Merkel b) Hillary Clinton c) Aung San Suu Kyi

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d) Lula da Silva e) Sheikh Hasina 15.G-4 is an alliance of four countries for the purpose of supporting each other’s bid for permanent seat in the United Nations Security Council. Apart from India, which are the other three countries constitution G4? a) Brazil, Germany and Japan b) Brazil, South Africa and Japan c) Mexico, Brazil and South Africa d) Japan, Brazil and Mexico e) None of these 16.In which of the following international universities has a chair been instituted in the memory of India’s pioneering development economist, Sanjay Lall? a) Cambridge University b) Stanford University c) Oxford University d) Moscow University e) San Carlos University 17.Name the new non-linked health insurance plan of the Life Insurance Corporation (LIC) of India which offers comprehensive hospitalization benefits for the whole family and parents-in-law of the principal insured? a) Rishtey

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b) Jeevan Sathi c) Anmol Jeevan d) Health Plus e) Jeevan Arogya 18.Who has been nominated for the CK Naidu Lifetime Achievement award? a) Lala Amarnath b) Salim Durrani c) Syed Mushtaq Ali d) KN Prabhu e) Syed Kirmani 19. British - born Sierra Leonean novelist Aminatta Forma won the 2011 Commonwealth Writers’ Prize for which of the following novels? a) The Devil that Danced on the Water b) Ancestor Stones c) The Memory of Love d) Ancestor Love e) All for Love 20. Which of the following rules has/have not been scrapped by the insurance regulator IRDA? a) Commission on the sale of ULIP b) Profitability clause of three years for floating initial public offer (IPOs)

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c) Traditional insurance plans have to make 50% investment in government bonds d) Only a and b e) Only a and c 21.Small Industries Development Bank of India (SIDBI) has been operating under SWS. What is the full form of SWS? a) Small Welfare Scheme b) Single Window Scheme c) Small Window Service d) Single Window Service e) None of these 22. Which of the following is the target fixed by the 11 th five-year plan pertaining to increase literacy, level by the 2012 The level should be increased to a) 50% b) 60% c) 70% d) 85% e) 90% 23.‘Blue Revolution’ is related to a) Space Research b) Fisheries c) Drinking Water d) Poultry

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e) Milk 24.Normally two types of factors are responsible for industrial sickness - external and internal. Which of the following is not an internal factor of industrial sickness? a) Shortage of power b) Mismanagement c) Diversion of funds d) Excessive overheads e) Overestimation of demand 25.Which of the following is an employment - generating scheme? a) Ganga Kalyan Yojana b) IRDA c) Swarnjayanti Shahri Rozgar Yojana d) Mid-Day Meal Scheme e) All of the above. 26.Ethanol - mixed petrol is being sold in various states wef January 1, 2003. The percentage of ethanol in petrol is a) 10% b) 7% c) 6% d) 5.5% e) 5%

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27. Which of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India? a) Services - Industry - Agriculture b) Services - Agriculture - Industry c) Industry - Services - Agriculture d) Industry - Agriculture - Services e) None of these 28.Which of the following agencies recently laid down guidelines for foreign companies who wish to raise money from the Indian capital markets? a) RBI b) IRDA c) Registrar of companies d) SEBI e) None of these 29. Consider the following statements: A) The repo rate is the rate at which other banks borrow money from the Reserve Bank of India. B) A value of one for Gini co-efficient in a country implies that there is perfectly equal income for everyone in its population. C) Higher interest rates can make EMIs costly. Which of the statements given above is/are correct? a) Only A b) Only A and C

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c) Only B and C d) All the above e) None of these 30. These days, more and more banks in Indian are setting up their ATMs and discouraging people to visit their branches for transaction. Which of the following is/are the limitations of the ATMs which force people to go to branch for transactions? A) Lack of human interface B) Communication gap C) Limited cash - dispensing ability a) Only A b) Only B c) Only C d) Both A and B e) A, B, and C All 31.Which of the following countries has the largest stock of foreign exchange reserves in the world? a) USA b) China c) Japan d) India e) None of these 32.Which of the following taxes is exclusively and totally assigned to the state government by the Constitutions?

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a) Estate duty b) Sales Tax c) Taxes on Railway fares and freights d) Corporation tax e) Entertainment 33. The tax on import and export is known as a) Income tax b) Trade tax c) Customs duty d) Commercial tax e) None of the above 34.Which of the following is not an objective of fiscal policy of Indian government? a) Full employment b) Price stability c) Regulation of inter-state trade d) Equitable distribution of wealth and income e) None of these 35. In India, national income is estimated by a) Planning Commission b) Central Statistical Organisation c) Indian Statistical Institute d) National Sample Survey Organisation

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e) None of these 36.Bharat Nirman Scheme of the UPA government does not include a) Rural water supply project b) Irrigation benefit programme c) Rural electrification d) Sarva Shiksha Abhiyan e) None of these 37. Invisible export means export of a) Services b) Prohibited goods c) Unrecorded goods d) Goods through smuggling e) Illegal export through a third county 38.A labour-intensive industry is one that a) requires hard manual labour b) pays adequate wages to the labour c) employs more hands d) provides facilities to labour e) None of these 39.In the law of demand, the statement ‘other things remain constant’ means. a) income of consumer should not change

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b) prices of other goods should not change c) taste of consumer should not change d) All the above e) None of these 40.A firm is in equilibrium when its a) Marginal cost equals the marginal revenue b) Total cost is minimum c) Total revenue is maximum d) Average revenue and marginal revenue are equal e) None of these 41.Bhagyam oil fields which are being explored by Carins India, is located in a) Assam b) Gujarat c) Rajasthan d) Karnataka e) None of the above 42.In which of the following regions of India has the Archaeological Survey of India (ASI) found evidences of hearths built by cutting natural mountains belonging to periods 3,000 to 4,000 years ago, for the first time? a) Garo Hills, Meghalaya b) Mishmi Hills, Arunachal Pradesh c) Western Ghats

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d) Ladakh Valley e) Satpura Range, Madhya Pradesh 43.Which of the following famous tabloids of Britain recently ceased its operations after its 168year - long history of scoops and scandals? a) The Sun b) Daily Mirror c) The Morning Star d) News of the World e) None of these 44.Which of the following mobile operators has launched its mobile newspaper, Newswrap, for its customers in Hyderabad? a) Airtel b) Reliance c) Idea d) Vodafone e) Aircel 45.Which of the following countries has taken over the rotational presidency of the European Union (EU) on July 1, 2011? a) Denmark b) Britain c) Germany d) Poland e) Netherlands

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46.Which of the following is the youngest country of the world that has joined the community of nations on July 9, 2011? a) South Sudan b) Maldova c) Estonia d) East Timor e) None of these 47. Name the Indian woman athlete who has clinched gold medal in high jump in the Asian Athletic Championship in Kobe, Japan. a) Shiny Wilson b) Mayookha Johny c) Soma Biswas d) Neelam Jaswant Singh e) None of these 48.As on June 30, 2011, which of the following rates stipulated by the Reserve Bank of India (RBI) is the lowest? a) Bank Rate b) Repo Rate c) Savings Bank Rate d) Cash Reserve Ratio e) Statutory Liquidity Ratio 49.Consider the following statements about the contentious issues in the upcoming India-EU free trade agreement.

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A) Intellectual property should be included in the investment chapter B) Government procurement policy in agriculture should be kept out of the purview of the agreement. C) Greater mutual market access for products such as automobiles, liquor, textile and liquor. Which of the above statements is/are true? a) Only A b) Only A and B c) Only A and C d) All the above e) None of these 50.Which of the following states has unveiled “Vision 2025” containing clear-cut policies for promoting investments in infrastructure such as power, ports, and ship building? a) Andhra Pradesh b) Tamil Nadu c) Gujarat d) Karnataka e) None of these ANSWERS: 1.e

2.c

3.e

4.b

5.a

6.d

7.b

11.c 12.b 13.d 14.a 15.a 16.c 17.e 21.d 22.d 23.b 24.a 25.c 26.e

8.d

9.b

10.c

18.d 19.c 20.d

27.a 28.d 29.d 30.c

31.b 32.b 33.c 34.c 35.b 36.d 37.a 38.c 39.d 40.a 41.c 42.d 43.d 44.d 45.d 46.a 47.b 48.c 49.d 50.b

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IBPS GENERAL AWARENESS MCQs

1. Which among the following is not the nationalized bank? 1) Andhra Bank 2) Syndicate bank 3) Axis bank 4) Central Bank of India 5) Oriental Bank of Commerce 2. Banks cannot accept ........... 1) Cash 2) Postal Stamps 3) Drafts 4) Bill of exchange 5) pay order 3. Cheque facility is not available in ...........? 1) Savings Account 2) Current Account

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3) Recurring Account 4) Savings and Current Account 5) All of above 4. The Demand Draft can be issued to ...........? 1) Farmer 2) Student 3) Government employee 4) Business man 5) All of above 5. Core banking means ...........? 1) Connectivity between all branches and RBI 2) Connectivity between all branches and the branches of other bank 3) Connectivity of branches, ATM and online systems of all branches 4) Connectivity between all RRB's and RBI 5) None 6. Which of the following rate usually not declared by RBI? 1) SLR 2) CRR 3) Base rate 4) Repo Rate 5) Reverse repo Rate 7. In private sector bank, the government may have the stake up to ........... percent?

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1) 50 2) 51 3) 100 4) 49 5) 0 8. In public sector bank, the government stake must be least ...........percent? 1) 50 2) 100 3) 90 4) 51 5)1 9. NEFT rules are given. Pick the wrong one? 1) NEFT means National Electronic Fund Transfer 2) Up to 2 lakhs the amount can be transferred 3) Both in Savings and Current Account the funds can be transferred 4) The minimum charge on this type of transfer is Rs.1000 5) Many private and Public Sector banks offer this facility these days 10. RTGS rules are given. Pick the wrong one? 1) RTGS means Real Time Gross Settlement 2) Above 2 lakhs the funds can be transferred 3) RTGS facility not available in current account 4) The charges of RTGS to be paid by the customer 5) All of above

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11 All savings bank accounts carry nominee name. A nominee cannot be ...........? 1) Friend 2) Mother 3) Father 4) Son 5) Daughter 12. On 19 October 2011, Pranab Mukarjee said the Union Government inject the funds in to public sector banks to maintain Tier Capital of ...........percent? 1) 5 2) 10 3) 6 4) 7 5) 8 13. The negotiable instrument is ...........? 1) Cheque 2) Demand draft 3) Bill of Exchange 4) Treasury Bills 5) All of above 14. Negotialble instruments rules and regulations mentioned by ...........? 1) Negotiable cheque Act 1901 2) Negotiable instruments Act 1901

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3) Negotiable instruments Act 1818 4) Negotiable instruments Act 1881 5) None 15. Usually there are three parties in the case of Cheque. The drawer is ...........? 1) One who writes cheque 2) One who receives cheque 3) One who mediates cheque 4) 1 & 3 5) None 16. In the cheques, the drawee is........... 1) One who writes cheque 2) One who mediates cheque 3) RBI 4) Bank 5) All of above 17. Drawing two or three lines on the left head of cheque is called ...........? 1) Nullity 2) Paid 3) Offering 4) Crossing 5) Nothing 18. Crossing means the bank should ...........? 1) Make the payment stop

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2) Make the payment late 3) Make the payment to payee through account only 4) Pay the amount to anybody 5) None 19. The cheque bounce due to ...........? 1) If the correct date written 2) If the Sunday date written 3) If the public holiday date written 4) If the date is the 30th of any month 5) Post date written 20. Cheque bounce due to ...........? 1) More funds 2) Funds not excessive at least Rs.1000 3) Lack of funds 4) If the amount has paise denomination 5) In all above cases 21. Cheque bounce due to ...........? 1) If the cheque is given with signature 2) If the cheque issued to government employee 3) Alteration made without signature 4) If the cheque value is more than 50 lakhs 5) In all above cases 22. On 20th October 2011, State Bank of India declared it earned 3.5 NIM in the second quarter. NIM stands for ...........? 1) Net Interest Minimum

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2) Not Interest Margin 3) Net Internal Margin 4) Net Interest Module 5) Net Interest Margin 23. ETF stands for ...........(In these days the people are buying GOLD ETF bonds) 1) Extra Trade Forum 2) Exchange Trade Finance 3) Eternal Trade Fund 4) Exchange Trade Forum 5) Exchange Traded Fund 24. Chairman of the National Advisory Committee on Accounting Standards is ...........? 1) D.Subba Rao 2) Y.V.Reddy 3) Y.H.Malegam 4) K.C.Chakravarthy 5) Montek Singh Ahluwalia 25. Which financial institute declared October month as Social Security Month? 1) SBI 2) Religare 3) LIC 4) India First 5) GIC

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26. FAO conference on East Africa famine concluded in ...........? 1) Rome 2) Vienna 3) Newyork 4) Washington 5) Canberaa 27. UN AIDS ambassador ...........participated in International AIDS conference on 7 Oct 2011 at Moscow? 1) Preity Zinta 2) Sharmila Tagore 3) Leela Samson 4) Mamatha Sharma 5) Shantha Sinha 28. Two public sector enterprises applied for the status of Maharatna recently. They are ...........? 1) CIL,HCL 2) ONGC,SBI 3) IOC,NTPC 4) SAIL,BEL 5) BHEL,GAIL 29. H- 1 (2011-2012)tax collection increased by ........... percent leading the collection to Rs.4,25,712 crores? 1) 14.5 2) 20.6 3) 22.1 4)18.9

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5) 25.6 30. The global economic growth in 2011 will be nearer to ........... percent only, compare to 4 percent in 2010? 1) Eight 2) Ten 3) Six 4) Seven 5) Three 31. ...........has introduced the nation's first petrol pump with self service refuelling facility in New Delhi? 1) ONGC 2) HP 3) IOC 4) BP 5) None 32. The second highest test Century (35) maker is Dravid. He is the cricketer from ...........? 1) Andhra Pradesh 2) Mumbai 3) Delhi 4) West Bengal 5) Karnataka 33. Baichiung Bhutia retired from international events. He is the former Indian ........... captain? 1) Volley ball

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2) Foot Ball 3) Cricket 4) Kho Kho 5) Kabbaddi 34. The term gully used in ...........? 1) Foot ball 2) Volley ball 3) Hand ball 4) Hockey 5) Cricket 35. The FIFA(Federation of International Football Association) world cup venues given. Pick the correct one? 1) 2010-South Africa 2) 2014-Brazil 3) 2018-Russia 4) 2022-Qatar 5) All of above 36. ...........released $ 1.5 billion aid to Libya on 27 August 2011? 1) USA 2) Russia 3) UNO 4) IBRD 5) IMF 37. Union government sanctioned Rs............crores for tracking cyclones in coastal states?

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1) 1500 2) 2500 3) 2000 4) 1700 5) 900 38. Fast attack warship ........... commissioned in Indian Navy on 26 August 2011? 1) Kaurava 2) Pandava 3) Karna 4) Salya 5) None 39. The Prime Minister announced the free import of 61 items from Bangladesh. The currency of Bangladesh is...........? 1) Dollar 2) Rupee 3) Ngultrum 4) Pound 5) Taka 40. Among 28 states in India, 17 states have Lokayukta. The first Lokayukta established in 1970 is ........... 1) Odisha 2) Andhra Pradesh 3) Assom 4) Tamilnadu 5) Sikkim

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41. The Lokayukta who inducted Yedurappa, the chief minister of Karnataka is ...........? 1) Justice Rey 2) Justice Kania 3) Justice Panduranga 4) Justice Sudha Misra 5) Justice Santosh Hegdey 42. The Lokayukta who resigned in Karnataka on the allegations of Land Scam? 1) Justice Nanavathi 2) Justice Bhagavathi 3) Justice Chandra Chud 4) Justice Mukarjee 5) Justice Sivaraj Patil 43. Recently the inventor of iPad died. He is ...........? 1) Edwin H. Armstrong 2) Charles Babbage 3) Steve Jobs 4) William Seward Burroughs 5) George Eastman 44. On 17th August 2011, ...........topped as most valuable firm crossing RIL ( Reliance Industries Limited) in market capitalization? 1) BHEL 2) ISRO 3) Bharati Cement

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4) Coco-Cola 5) Coal India Limited 45. Top three destinations of Indian exports as per e-Bay site? 1) Eurpoe,USA and UK 2) USA,UK and Germany 3) USA, Indonesia and China 4) USA,UK and Europe 5) USA,UK and Australia 46. The export promotion scheme 'Focus: LAC' applies to ...........? 1) European Union 2) North America 3) South East Asia 4) Africa 5) South America 47. 100th International Labour Organization summit held in ...........on 13 June 2011? 1) Geneva 2) Paris 3) New York 4) Washington 5) Rome 48. National convention of Parliamentarians, Legislators, zilla parishad chairpersons and mayors on HIV/ AIDS held in...........on 4, 5 July 2011? 1) Mumbai

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2) Hyderabad 3) Chennai 4) New Delhi 5) Pune 49. World Investors summit will be held in .......... 1) Hyderabad 2) New Delhi 3) Bengaluru 4) Chennai 5) Kolkata ANSWERS: 1)3 2)2 3)3 4)5 5)3 6)3 7)4 8)4 9)4 10)3 11)1 12)5 13)5 14)4 15)1 16)4 17)4 18)3 19)5 20)3 21)3 22)5 23)5 24)3 25)3 26)1 27)1 28)5 29)3 30)5 31)3 32)5 33)2 34)5 35)5 36)3 37)1 38)1 39)5 40)1 41)5 42)5 43)3 44)5 45)5 46)5 47)1 48)4 49)3.

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BANKING & FINANCIAL TERMS

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Accrued interest : Interest due from issue date or from the last coupon payment date to the settlement date. Accrued interest on bonds must be added to their purchase price.

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Arbitrage : Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market.

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Ask Price : The lowest price at which a dealer is willing to sell a given security.

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: A type of security that is Asset-Backed Securities (ABS) backed by a pool of bank loans, leases, and other assets. Most ABS are backed by auto loans and credit cards – these issues are very similar to mortgage-backed securities.

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At-the-money : The exercise price of a derivative that is closest to the market price of the underlying instrument.

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Basis Point : One hundredth of 1%. A measure normally used in the statement of interest rate e.g., a change from 5.75% to 5.81% is a change of 6 basis points.

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Bear Markets : Unfavorable markets associated with falling prices and investor pessimism.

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Bid-ask Spread : The difference between a dealer’s bid and ask price.

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Bid Price : The highest price offered by a dealer to purchase a given security.

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Blue Chips : Blue chips are unsurpassed in quality and have a long and stable record of earnings and dividends. They are issued by large and well-established firms that have impeccable financial credentials.

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Bond : Publicly traded long-term debt securities, issued by corporations and governments, whereby the issuer agrees to pay a fixed amount of interest over a specified period of time and to repay a fixed amount of principal at maturity.

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Book Value : The amount of stockholders’ equity in a firm equals the amount of the firm’s assets minus the firm’s liabilities and preferred stock. /p>

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Broker : Individuals licensed by stock exchanges to enable investors to buy and sell securities.

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Brokerage Fee : The commission charged by a broker.

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Bull Markets : Favorable markets associated with rising prices and investor optimism.

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Call Option : The right to buy the underlying securities at a specified exercise price on or before a specified expiration date.

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Callable Bonds : Bonds that give the issuer the right to redeem the bonds before their stated maturity.

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Capital Gain : The amount by which the proceeds from the sale of a capital asset exceed its original purchase price.

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Capital Markets : The market in which long-term securities such as stocks and bonds are bought and sold.

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: Savings instrument in which Certificate of Deposits (CDs) funds must remain on deposit for a specified period, and premature withdrawals incur interest penalties.

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: A fund with a fixed number of Closed-end (Mutual) Fund shares issued, and all trading is done between investors in the open market. The share prices are determined by market prices instead of their net asset value.

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Collateral : A specific asset pledged against possible default on a bond. Mortgage bonds are backed by claims on property. Collateral trusts bonds are backed by claims on other securities. Equipment obligation bonds are backed by claims on equipment.

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Commercial Paper : Short-term and unsecured promissory notes issued by corporations with very high credit standings.

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Common Stock : Equity investment representing ownership in a corporation; each share represents a fractional ownership interest in the firm.

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Compound Interest : Interest paid not only on the initial deposit but also on any interest accumulated from one period to the next.

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Contract Note : A note which must accompany every security transaction which contains information such as the dealer’s name (whether he is acting as principal or agent) and the date of contract.

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: Any person who is, or group of Controlling Shareholder persons who together are, entitled to exercise or control the exercise of a certain amount of shares in a company at a level (which differs by jurisdiction) that triggers a mandatory general offer, or more of the voting power at general meetings of the issuer, or who is or are in a position to control the composition of a majority of the board of directors of the issuer.

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: A bond with an option, allowing the Convertible Bond bondholder to exchange the bond for a specified number of shares of common stock in the firm. A conversion price is the specified value of the shares for which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the conversion price.

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Corporate Bond corporations.

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Coupon : The feature on a bond that defines the amount of annual interest income.

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Coupon Frequency

: Long-term debt issued by private

: The number of coupon payments per year.

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Coupon Rate : The annual rate of interest on the bond’s face value that a bond’s issuer promises to pay the bondholder. It is the bond’s interest payment per dollar of par value.

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Covered Warrants : Derivative call warrants on shares which have been separately deposited by the issuer so that they are available for delivery upon exercise.

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Credit Rating : An assessment of the likelihood of an individual or business being able to meet its financial obligations. Credit ratings are provided by credit agencies or rating agencies to verify the financial strength of the issuer for investors.

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Currency Board : A monetary system in which the monetary base is fully backed by foreign reserves. Any changes in the size of the monetary base has to be fully matched by corresponding changes in the foreign reserves.

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Current Yield : A return measure that indicates the amount of current income a bond provides relative to its market price. It is shown as: Coupon Rate divided by Price multiplied by 100%.

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: Registration of securities in the name of Custody of Securities the person to whom a bank is accountable, or in the name of the bank’s nominee; plus deposition of securities in a designated account with the bank’s bankers or with any other institution providing custodial services.

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Default Risk : The possibility that a bond issuer will default ie, fail to repay principal and interest in a timely manner.

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: Warrants issued by a third Derivative Call (Put) Warrants party which grant the holder the right to buy (sell) the shares of a listed company at a specified price.

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: Financial instrument whose value Derivative Instrument depends on the value of another asset.

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Discount Bond : A bond selling below par, as interest in-lieu to the bondholders.

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Diversification : The inclusion of a number of different investment vehicles in a portfolio in order to increase returns or be exposed to less risk.

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Duration : A measure of bond price volatility, it captures both price and reinvestment risks to indicate how a bond will react to different interest rate environments.

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Earnings : The total profits of a company after taxation and interest.

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: The amount of annual earnings Earnings per Share (EPS) available to common stockholders as stated on a per share basis.

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Earnings Yield : The ratio of earnings to price (E/P). The reciprocal is price earnings ratio (P/E).

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Equity : Ownership of the company in the form of shares of common stock.

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Equity Call Warrants : Warrants issued by a company which give the holder the right to acquire new shares in that company at a specified price and for a specified period of time.

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Ex-dividend (XD) : A security which no longer carries the right to the most recently declared dividend or the period of time between the announcement of the dividend and the payment (usually two days before the record date). For transactions during the ex-dividend period, the seller will receive the dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the stock’s or unit trust’s name.

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Face Value/ Nominal Value : The value of a financial instrument as stated on the instrument. Interest is calculated on face/nominal value.

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Fixed-income Securities periodic return.

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Fixed Rate Bonds maturity date.

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Floating Rate Bonds : Bonds bearing interest payments that are tied to current interest rates.

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: Research to predict stock value that Fundamental Analysis focuses on such determinants as earnings and dividends

: Investment vehicles that offer a fixed

: Bonds bearing fixed interest payments until

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prospects, expectations for future interest rates and risk evaluation of the firm. •

Future Value : The amount to which a current deposit will grow over a period of time when it is placed in an account paying compound interest.

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: The amount to which a stream of Future Value of an Annuity equal cash flows that occur in equal intervals will grow over a period of time when it is placed in an account paying compound interest.

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Futures Contract : A commitment to deliver a certain amount of some specified item at some specified date in the future.

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Hedge : A combination of two or more securities into a single investment position for the purpose of reducing or eliminating risk.

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Income : The amount of money an individual receives in a particular time period.

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Index Fund : A mutual fund that holds shares in proportion to their representation in a market index, such as the S&P 500.

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Initial Public Offering (IPO) : An event where a company sells its shares to the public for the first time. The company can be referred to as an IPO for a period of time after the event.

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Inside Information : Non-public knowledge about a company possessed by its officers, major owners, or other individuals with privileged access to information.

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Insider Trading : The illegal use of non-public information about a company to make profitable securities transactions

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Intrinsic Value : The difference of the exercise price over the market price of the underlying asset.

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Investment : A vehicle for funds expected to increase its value and/or generate positive returns.

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Investment Adviser : A person who carries on a business which provides investment advice with respect to securities and is registered with the relevant regulator as an investment adviser.

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IPO price : The price of share set before being traded on the stock exchange. Once the company has gone Initial Public Offering, the stock price is determined by supply and demand.

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Junk Bond : High-risk securities that have received low ratings (i.e. Standard & Poor’s BBB rating or below; or Moody’s BBB rating or below) and as such, produce high yields, so long as they do not go into default.

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Leverage Ratio : Financial ratios that measure the amount of debt being used to support operations and the ability of the firm to service its debt.

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Libor : The London Interbank Offered Rate (or LIBOR) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). The LIBOR rate is published daily by the British Banker’s Association and will be slightly higher than the London Interbank Bid Rate (LIBID), the rate at which banks are prepared to accept deposits.

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Limit Order : An order to buy (sell) securities which specifies the highest (lowest) price at which the order is to be transacted.

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Limited Company : The passive investors in a partnership, who supply most of the capital and have liability limited to the amount of their capital contributions.

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Liquidity : The ability to convert an investment into cash quickly and with little or no loss in value.

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Listing : Quotation of the Initial Public Offering company’s shares on the stock exchange for public trading.

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Listing Date : The date on which Initial Public Offering stocks are first traded on the stock exchange by the public

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Margin Call : A notice to a client that it must provide money to satisfy a minimum margin requirement set by an Exchange or by a bank / broking firm.

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Market Capitalization : The product of the number of the company’s outstanding ordinary shares and the market price of

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each share. •

Market Maker : A dealer who maintains an inventory in one or more stocks and undertakes to make continuous two-sided quotes.

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Market Order : An order to buy or an order to sell securities which is to be executed at the prevailing market price.

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Money Market : Market in which short-term securities are bought and sold.

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Mutual Fund : A company that invests in and professionally manages a diversified portfolio of securities and sells shares of the portfolio to investors.

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Net Asset Value : The underlying value of a share of stock in a particular mutual fund; also used with preferred stock.

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Offer for Sale : An offer to the public by, or on behalf of, the holders of securities already in issue.

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Offer for Subscription : The offer of new securities to the public by the issuer or by someone on behalf of the issuer.

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Open-end (Mutual) Fund : There is no limit to the number of shares the fund can issue. The fund issues new shares of stock and fills the purchase order with those new shares. Investors buy their shares from, and sell them back to, the mutual fund itself. The share prices are determined by their net asset value.

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Open Offer : An offer to current holders of securities to subscribe for securities whether or not in proportion to their existing holdings.

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Option : A security that gives the holder the right to buy or sell a certain amount of an underlying financial asset at a specified price for a specified period of time.

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Oversubscribed : When an Initial Public Offering has more applications than actual shares available. Investors will often apply for more shares than required in anticipation of only receiving a fraction of the requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an indication of the public’s perception of the business potential of the IPO company.

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Par Bond : A bond selling at par (i.e. at its face value).

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Par Value : The face value of a security.

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Perpetual Bonds

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Placing : Obtaining subscriptions for, or the sale of, primary market, where the new securities of issuing companies are initially sold.

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Portfolio : A collection of investment vehicles assembled to meet one or more investment goals.

: Bonds which have no maturity date.

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: A corporate security that pays a fixed Preference Shares dividend each period. It is senior to ordinary shares but junior to bonds in its claims on corporate income and assets in case of bankruptcy.

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Premium (Warrants) : The difference of the market price of a warrant over its intrinsic value.

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Premium Bond : Bond selling above par.

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Present Value : The amount to which a future deposit will discount back to present when it is depreciated in an account paying compound interest.

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: The amount to which a stream of Present Value of an Annuity equal cash flows that occur in equal intervals will discount back to present when it is depreciated in an account paying compound interest.

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Price/Earnings Ratio (P/E) : The measure to determine how the market is pricing the company’s common stock. The price/earnings (P/E) ratio relates the company’s earnings per share (EPS) to the market price of its stock.

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Privatization : The sale of government-owned equity in nationalized industry or other commercial enterprises to private investors.

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Prospectus : A detailed report published by the Initial Public Offering company, which includes all terms and conditions,

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application procedures, IPO prices etc, for the IPO •

Put Option : The right to sell the underlying securities at a specified exercise price on of before a specified expiration date.

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: A percentage showing the amount of Rate of Return investment gain or loss against the initial investment.

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Real Interest Rate : The net interest rate over the inflation rate. The growth rate of purchasing power derived from an investment.

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Redemption Value

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Reinvestment Value : The rate at which an investor assumes interest payments made on a bond which can be reinvested over the life of that security.

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: A stock’s price that changes Relative Strength Index (RSI) over a period of time relative to that of a market index such as the Standard & Poor’s 500, usually measured on a scale from 1 to 100, 1 being the worst and 100 being the best.

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: An arrangement in which a security is Repurchase Agreement sold and later bought back at an agreed price and time.

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: A price at which sellers consistently Resistance Level outnumber buyers, preventing further price rises.

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Return : Amount of investment gain or loss.

: The value of a bond when redeemed.

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Rights Issue : An offer by way of rights to current holders of securities that allows them to subscribe for securities in proportion to their existing holdings.

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: Risk-Averse, Risk-Neutral, Risk-Taking Risk-averse describes an investor who requires greater return in exchange for greater risk. Risk-neutral describes an investor who does not require greater return in exchange for greater risk. Risk-taking describes an investor who will accept a lower return in exchange for greater risk.

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Senior Bond : A bond that has priority over other bonds in claiming assets and dividends.

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Short Hedge : A transaction that protects the value of an asset held by taking a short position in a futures contract.

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Settlement : Conclusion of a securities transaction when a customer pays a broker/dealer for securities purchased or delivered, securities sold, and receives from the broker the proceeds of a sale.

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Short Position : Investors sell securities in the hope that they will decrease in value and can be bought at a later date for profit.

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Short Selling : The sale of borrowed securities, their eventual repurchase by the short seller at a lower price and their return to the lender.

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Speculation : The process of buying investment vehicles in which the future value and level of expected earnings are highly uncertain.

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Stock Splits : Wholesale changes in the number of shares. For example, a two for one split doubles the number of shares but does not change the share capital.

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Subordinated Bond : An issue that ranks after secured debt, debenture, and other bonds, and after some general creditors in its claim on assets and earnings. Owners of this kind of bond stand last in line among creditors, but before equity holders, when an issuer fails financially.

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: A person acquires an interest in Substantial Shareholder relevant share capital equal to, or exceeding, 10% of the share capital.

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Support Level : A price at which buyers consistently outnumber sellers, preventing further price falls.

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: A method of evaluating securities by Technical Analysis relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Contrasted with fundamental analysis which involves the study of financial accounts and other information about the company. (It is an attempt to predict movements in security prices from their trading volume history.)

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Time Horizon : The duration of time an investment is intended for.

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Trading Rules : Stipulation of parameters for opening and intra-day quotations, permissible spreads according to the prices of securities available for trading and board lot sizes for each security.

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Trust Deed : A formal document that creates a trust. It states the purpose and terms of the name of the trustees and beneficiaries.

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Underlying Security : The security subject to being purchased or sold upon exercise of the option contract.

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Valuation : Process by which an investor determines the worth of a security using risk and return concept.

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Warrant : An option for a longer period of time giving the buyer the right to buy a number of shares of common stock in company at a specified price for a specified period of time.

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Window Dressing : Financial adjustments made solely for the purpose of accounting presentation, normally at the time of auditing of company accounts.

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Yield (Internal rate of Return) return earned by an investment

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Yield to Maturity : The rate of return yield by a bond held to maturity when both compound interest payments and the

: The compound annual rate of

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investor’s capital gain or loss on the security are taken into account. •

Zero Coupon Bond : A bond with no coupon that is sold at a deep discount from par value.

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BANKING TERMINOLOGY October 24, 2011 Anytime Banking : With introduction of ATMs, Tele-Banking and internet banking, customers can conduct their business anytime of the day and night. The 'Banking Hours' is not a constraint for transacting banking business. Refers to banking not only by ATMs, Anywhere Banking : Tele-Banking and internet banking, but also to core banking solutions brought in by banks where customer can deposit his money, cheques and also withdraw money from any branch connected with the system. All major banks in India have brought in core banking in their operations to make banking truly anywhere banking. ATM :ATMs are Automatic Teller Machines, which do the job of a teller in a bank through Computer Network. ATMs are located on the branch premises or off branch premises. ATMs are useful to dispense cash, receive cash, accept cheques, give balances in the accounts and also give mini-statements to the customers. Bank Ombudsman : Bank Ombudsman is the authority to look into complaints against Banks in the main areas of collection of cheque / bills, issue of demand drafts, non-adherence to prescribed hours of working, failure to honour guarantee / letter of credit commitments, operations in deposit accounts and also in the areas of loans and advances where banks flout directions / instructions of RBI. This Scheme was announced in 1995 and is functioning with new

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guidelines from 2007. This scheme covers all scheduled banks, the RRBs and co-operative banks. Bancassurance refers to the distribution of Bancassurance : insurance products and the insurance policies of insurance companies which may be life policies or non-life policies like home insurance - car insurance, medi-policies and others, by banks as corporate agents through their branches located in different parts of the country by charging a fee. Banker's Lien : Bankers lien is a special right of lien exercised by the bankers, who can retain goods bailed to them as a security for general balance of account. Bankers can have this right in the absence of a contract to the contrary. Banking : Accepting for the purpose of lending or investment of deposits of money from Public, Repayable on demand or otherwise and withdrawable by cheques, drafts, order, etc. Basel-II : The Committee on Banking Regulations and Supervisory Practices, popularity known as Basel Committee, submitted its revised version of norms in June, 2004. Under the revised accord the capital requirement is to be calculated for credit, market and operational risks. The minimum requirement continues to be 8% of capital fund (Tier I & II Capital) Tier II shall continue to be not more than 100% of Tier I Capital. Brick and Mortar Banking refers to Brick & Mortar Banking : traditional system of banking done only in a fixed branch premises

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made of brick and mortar. Now there are banking channels like ATM, Internet Banking,tele banking etc. Accepting deposits, borrowing money, Business of Banking : lending money, investing, dealing in bills, dealing in Foreign Exchange, Hiring Lockers, Opening Safe Custody Accounts, Issuing Letters of Credit, Traveller's Cheques, doing Mutual Fund business, Insurance Business, acting as Trustee or doing any other business which Central Government may notify in the official Gazette. Where an account does not have Bouncing of a cheque : sufficient balance to honour the cheque issued by the customer , the cheque is returned by the bank with the reason "funds insufficient" or "Exceeds arrangement".This is known as 'Bouncing of a cheque' . Certificate of Deposits are negotiable Certificate of Deposit :. receipts in bearer form which can be freely traded among investors. This is also a money market instrument,issued for a period ranging from 7 days to f one year .The minimum deposit amount is Rs. 1 lakh and they are transferable by endorsement and delivery. Cheque : Cheque is a Bill of Exchange drawn on a specified banker ordering the banker to pay a certain sum of money to the drawer of cheque or another person. Money is generally withdrawn by clients by cheques. Cheque is always payable on demand. Cheque truncation, truncates or stops the Cheque Truncation : flow of cheques through the banking system. Generally truncation

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takes place at the collecting branch, which sends the electronic image of the cheques to the paying branch through the clearing house and stores the paper cheques with it. Also called receiving banker, who collects on Collecting Banker : instruments like a cheque, draft or bill of exchange, lodged with himself for the credit of his customer's account. It is implemented from 1987 to enforce Consumer Protection Act : consumer rights through a simple legal procedure. Banks also are covered under the Act. A consumer can file complaint for deficiency of service with Consumer District Forum for amounts upto Rs.20 Lacs in District Court, and for amounts above Rs.20 Lacs to Rs.1 Crore in State Commission and for amounts above Rs.1 Crore in National Commission. An association of persons who collectively Co-operative Bank : own and operate a bank for the benefit of consumers / customers, like Saraswat Co-operative Bank or Abhyudaya Co-operative Bank and other such banks. When an association of persons collectively Co-operative Society : own and operate a unit for the benefit of those using its services like Apna Bazar Co-operative Society or Sahakar Bhandar or a Co-operative Housing Society. Core Banking Solutions is a buzz Core Banking Solutions (CBS) : word in Indian banking at present, where branches of the bank are connected to a central host and the customers of connected

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branches can do banking at any breach with core banking facility. Creditworthiness : It is the capacity of a borrower to repay the loan / advance in time alongwith interest as per agreed terms. Crossing refers to drawing two parallel Crossing of Cheques : lines across the face of the cheque.A crossed cheque cannot be paid in cash across the counter, and is to be paid through a bank either by transfer, collection or clearing.A general crossing means that cheque can be paid through any bank and a special crossing, where the name of a bank is indicated on the cheque, can be paid only through the named bank. Current account with a bank can be opened Current Account : generally for business purpose. There are no restrictions on withdrawals in this type of account. No interest is paid in this type of account. Customer : A person who maintains any type of account with a bank is a bank customer. Consumer Protection Act has a wider definition for consumer as the one who purchases any service for a fee like purchasing a demand draft or a pay order. The term customer is defined differently by Laws, softwares and countries. A plastic card issued by banks to customers to Debit Card : withdraw money electronically from their accounts. When you purchase things on the basis of Debit Card the amount due is debited immediately to the account . Many banks issue Debit-Cum-ATM Cards.

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Debtor : person.

A person who takes some money on loan from another

Deposits which are withdrawn on demand by Demand Deposits : customers.E.g. savings bank and current account deposits. Demat Account concept has revolutionized the Demat Account : capital market of India. When a depository company takes paper shares from an investor and converts them in electronic form through the concerned company, it is called Dematerialization of Shares. These converted Share Certificates in Electronic form are kept in a Demat Account by the Depository Company, like a bank keeps money in a deposit account. Investor can withdraw the shares or purchase more shares through this demat Account. Non-payment of a cheque by the paying Dishonour of Cheque : banker with a return memo giving reasons for the non-payment. A plastic card issued by banks to customers to Debit Card : withdraw money electronically from their accounts. When you purchase things on the basis of Debit Card the amount due is debited immediately to the account . Many banks issue Debit-Cum-ATM Cards. Debtor : person.

A person who takes some money on loan from another

Demand Deposits :

Deposits which are withdrawn on demand by

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customers.E.g. savings bank and current account deposits. Demat Account concept has revolutionized the Demat Account : capital market of India. When a depository company takes paper shares from an investor and converts them in electronic form through the concerned company, it is called Dematerialization of Shares. These converted Share Certificates in Electronic form are kept in a Demat Account by the Depository Company, like a bank keeps money in a deposit account. Investor can withdraw the shares or purchase more shares through this demat Account. Non-payment of a cheque by the paying Dishonour of Cheque : banker with a return memo giving reasons for the non-payment. E-Banking : E-Banking or electronic banking is a form of banking where funds are transferred through exchange of electronic signals between banks and financial institution and customers ATMs, Credit Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like SWIFT, RTGS belong to this category. EFT is a device to facilitate EFT - (Electronic Fund Transfer) : automatic transmission and processing of messages as well as funds from one bank branch to another bank branch and even from one branch of a bank to a branch of another bank. EFT allows transfer of funds electronically with debit and credit to relative accounts. Either or Survivor : Refers to operation of the account opened in two names with a bank. It means that any one of the account

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holders have powers to withdraw money from the account, issue cheques, give stop payment instructions etc. In the event of death of one of the account holder, the surviving account holder gets all the powers of operation. E-Commerce is the Electronic Commerce (E-Commerce): paperless commerce where the exchange of business takes place by Electronic means. When a Negotiable Instrument contains, on the Endorsement : back of the instrument an endorsement, signed by the holder or payee of an order instrument, transferring the title to the other person, it is called endorsement. Where the name of the endorsee or Endorsement in Blank : transferee is not mentioned on the instrument. Where the name of the endorsee or Endorsement in Full : transferee appears on the instrument while making endorsement. Execution of documents is done by Execution of Documents : putting signature of the person, or affixing his thumb impression or putting signature with stamp or affixing common seal of the company on the documents with or without signatures of directors as per articles of association of the company. Factoring : Business of buying trade debts at a discount and making a profit when debt is realized and also taking over collection of trade debts at agreed prices.

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Foreign Banks : Banks incorporated outside India but operating in India and regulated by the Reserve Bank of India (RBI),. e..g., Barclays Bank, HSBC, Citibank, Standard Chartered Bank, etc. Forfaiting : In International Trade when an exporter finds it difficult to realize money from the importer, he sells the right to receive money at a discount to a forfaiter, who undertakes inherent political and commercial risks to finance the exporter, of course with assumption of a profit in the venture. Forgery : when a material alteration is made on a document or a Negotiable Instrument like a cheque, to change the mandate of the drawer, with intention to defraud. Garnishee Order : When a Court directs a bank to attach the funds to the credit of customer's account under provisions of Section 60 of the Code of Civil Procedure, 1908. General Lien : A right of the creditors to retain possession of all goods given in security to him by the debtor for any outstanding debt. A contract between guarantor and beneficiary to Guarantee : ensure performance of a promise or discharge the liability of a third person. If promise is broken or not performed, the guarantor pays contracted amount to the beneficiary. Holder : Holder means any person entitled in his own name to the

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possession of the cheque, bill of exchange or promissory note and who is entitled to receive or recover the amount due on it from the parties. For example, if I give a cheque to my friend to withdraw money from my bank,he becomes holder of that cheque. Even if he loses the cheque, he continues to be holder. Finder cannot become the holder. A person who receives a Negotiable Holder in due course : Instrument for value, before it was due and in good faith, without notice of any defect in it, he is called holder in due course as per Negotiable Instrument Act. In the earlier example if my friend lends some money to me on the basis of the cheque, which I have given to him for encashment, he becomes holder-in-due course. Charge against property for an amount of debt Hypothecation : where neither ownership nor possession is passed to the creditor. In pledge, possession of property is passed on to the lender but in hypothecation, the property remains with the borrower in trust for the lender. Identification : When a person provides a document to a bank or is being identified by a person, who is known to the bank, it is called identification. Banks ask for identification before paying an order cheque or a demand draft across the counter. Indemnifier : When a person indemnifies or guarantees to make good any loss caused to the lender from his actions or others' actions.

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Indemnity : Indemnity is a bond where the indemnifier undertakes to reimburse the beneficiary from any loss arising due to his actions or third party actions. Insolvent : Insolvent is a person who is unable to pay his debts as they mature, as his liabilities are more than the assets . Civil Courts declare such persons insolvent. Banks do not open accounts of insolvent persons as they cannot enter into contract as per law. When cheque is given by a company or an Interest Warrant : organization in payment of interest on deposit , it is called interest warrant. Interest warrant has all the characteristics of a cheque. involves more than two nations or International Banking : countries. If an Indian Bank has branches in different countries like State Bank of India, it is said to do International Banking. Introduction : Banks are careful in opening any account for a customer as the prospective customer has to be introduced by an existing account holder or a staff member or by any other person known to the bank for opening of account. If bank does not take introduction, it will amount to negligence and will not get protection under law. Joint Hindu Family Account is account of a firm JHF Account : whose business is carried out by Karta of the Joint family, acting for all the family members.. The family members have common ancestor and generally maintain a common residence and are subject to common social, economic and religious regulations.

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When two or more individuals jointly open an Joint Account : account with a bank. Karta : Manager of a Hindu Undivided Family (HUF) who handles the family business. He is usually the eldest male member of the undivided family. Doing banking from a cubicle from which food, Kiosk Banking : newspapers, tickets etc. are also sold. KYC Norms : Know your customer norms are imposed by R.B.I. on banks and other financial institutions to ensure that they know their customers and to ensure that customers deal only in legitimate banking operations and not in money laundering or frauds. Law of Limitation : Limitation Act of 1963 fixes the limitation period of debts and obligations including banks loans and advances. If the period fixed for particular debt or loan expires, one can not file a suit for is recovery, but the fact of the debt or loan is not denied. It is said that law of limitation bars the remedy but does not extinguish the right. Financing for the business of renting houses or Lease Financing : lands for a specified period of time and also hiring out of an asset for the duration of its economic life. Leasing of a car or heavy machinery for a specific period at specific price is an example. Letter of Credit :

A document issued by importers bank to its

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branch or agent abroad authorizing the payment of a specified sum to a person named in Letter of Credit (usually exporter from abroad). Letters of Credit are covered by rules framed under Uniform Customs and Practices of Documentary Credits framed by International Chamber of Commerce in Paris. Accounts of companies Limited Companies Accounts : incorporated under the Companies Act, 1956 . A company may be private or public. Liability of the shareholders of a company is generally limited to the face value of shares held by them. Mandate : Written authority issued by a customer to another person to act on his behalf, to sign cheques or to operate a bank account. Material Alteration : Alteration in an instrument so as to alter the character of an instrument for example when date, amount, name of the payee are altered or making a cheque payable to bearer from an order one or opening the crossing on a cheque. Merchant Banking : When a bank provides to a customer various types of financial services like accepting bills arising out of trade, arranging and providing underwriting, new issues, providing advice, information or assistance on starting new business, acquisitions, mergers and foreign exchange. Micro Finance: Micro Finance aims at alleviation of poverty and empowerment of weaker sections in India. In micro finance, very small amounts are given as credit to poor in rural, semi-urban and urban areas to enable them to raise their income levels and improve

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living standards. Minor Accounts : A minor is a person who has not attained legal age of 18 years. As per Contract Act a minor cannot enter into a contract but as per Negotiable Instrument Act, a minor can draw, negotiate, endorse, receive payment on a Negotiable Instrument so as to bind all the persons, except himself. In order to boost their deposits many banks open minor accounts with some restrictions. With the help of M-Banking or mobile banking Mobile Banking : customer can check his bank balance, order a demand draft, stop payment of a cheque, request for a cheque book and have information about latest interest rates. When a customer uses banking channels to Money Laundering : cover up his suspicious and unlawful financial activities, it is called money laundering. Money market is not an organized market like Money Market : Bombay Stock Exchange but is an informal network of banks, financial institutions who deal in money market instruments of short term like CP, CD and Treasury bills of Government. Moratorium : R.B.I. imposes moratorium on operations of a bank; if the affairs of the bank are not conducted as per banking norms. After moratorium R.B.I. and Government explore the options of safeguarding the interests of depositors by way of change in management, amalgamation or take over or by other means.

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Mortgage : Transfer of an interest in specific immovable property for the purpose of offering a security for taking a loan or advance from another. It may be existing or future debt or performance of an agreement which may create monetary obligation for the transferor (mortgagor). NABARD : National Bank for Agriculture & Rural Development was setup in 1982 under the Act of 1981. NABARD finances and regulates rural financing and also is responsible for development agriculture and rural industries. Negotiation : In the context of banking, negotiation means an act of transferring or assigning a money instrument from one person to another person in the course of business. Non-Fund Based Limits are those type Non-Fund Based Limits : of limits where banker does not part with the funds but may have to part with funds in case of default by the borrowers, like guarantees, letter of credit and acceptance facility. Non-Resident : non-resident.

A person who is not a resident of India is a

Non-Resident Accounts : Accounts of non-resident Indian citizens opened and maintained as per R.B.I. Rules. A Lawyer who is authorized by Government to Notary Public : certify copies of documents .

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NPA Account : If interest and instalments and other bank dues are not paid in any loan account within a specified time limit, it is being treated as non-performing assets of a bank. Those items which affect the financial Off Balance Sheet Items : position of a business concern, but do not appear in the Balance Sheet E,g guarantees, letters of credit . The mention "off Balance Sheet items" is often found in Auditors Reports or Directors Reports. Online Banking : made interactive.

Banking through internet site of the bank which is

Pass Book : A record of all debit and credit entries in a customer's account. Generally all banks issue pass books to Savings Bank/Current Account Holders. Personal Identification Personal Identification Number (PIN) : Number is a number which an ATM card holder has to key in before he is authorized to do any banking transaction in a ATM . Credit Cards, Debit Cards, ATM Cards and Plastic Money : International Cards are considered plastic money as like money they can enable us to get goods and services. Pledge : A bailment of goods as security for payment of a debt or performance of a promise, e.g pledge of stock by a borrower to a banker for a credit limit. Pledge can be made in movable goods only.

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A Cheque which bears the date which is Post-Dated Cheque : subsequent to the date when it is drawn. For example, a cheque drawn on 8th of February, 2007 bears the date of 12th February, 2007. It is a document executed by one person Power of Attorney : Donor or Principal, in favour of another person , Donee or Agent - to act on behalf of the former, strictly as per authority given in the document. Term deposits like Fixed Deposits, Call Premature Withdrawals : Deposits, Short Deposits and Recurring Deposits have to mature on a particular day. When these deposits are sought to be withdrawn before maturity , it is premature withdrawal. Prime Lending Rate (PLR) : best (prime) customers.

The rate at which banks lend to their

consist of loans and advances to Priority Sector Advances : Agriculture, Small Scale Industry, Small Road and Water Transport Operators, Retail Trade, Small Business with limits on investment in equipments, professional and self employed persons, state sponsored organisations for lending to SC/ST, Educational Loans, Housing Finance up to certain limits, self-help groups and consumption loans. Promissory Note is a promise / undertaking Promissory Note : given by one person in writing to another person, to pay to that

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person , a certain sum of money on demand or on a future day. Provisioning : Provisioning is made for the likely loss in the profit and loss account while finalizing accounts of banks. All banks are supposed to make assets classification . and make appropriate provisions for likely losses in their balance sheets. Public Sector Bank : Government.

A bank fully or partly owned by the

Rearranging the repayment of a debt Rescheduling of Payment : over a longer period than originally agreed upon due to financial difficulties of the borrower. Where endorser desires that Restrictive Endorsement : instrument is to be paid to particular person only, he restricts further negotiation or transfer by such words as "Pay to Ashok only". Now Ashok cannot negotiate the instrument further. As per Section 59 of the Indian Contract Right of Appropriation : Act, 1972 while making the payment, a debtor has the right to direct his creditor to appropriate such amount against discharge of some particular debt. If the debtor does not do so, the banker can appropriate the payment to any debt of his customer. When a banker combines two accounts in the Right of Set-Off : name of the same customer and adjusts the debit balance in one account with the credit balance in other account, it is called right of set-off. For example, debit balance of Rs.50,000/- in overdraft

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account can be set off against credit balance of Rs.75,000/- in the Savings Bank Account of the same customer, leaving a balance of Rs.25,000/- credit in the savings account. Safe Custody : When articles of value like jewellery, boxes, shares, debentures, Government bonds, Wills or other documents or articles are given to a bank for safe keeping in its safe vault,it is called safe custody.. Bank charges a fee from its clients for such safe custody. All banks in India are having the facility of Savings Bank Account : opening savings bank account with a nominal balance. This account is used for personal purposes and not for business purpose and there are certain restrictions on withdrawals from this type of account. Account holder gets nominal interest in this account. Teller : Teller is a staff member of a bank who accepts deposits, cashes cheques and performs other banking services for the public. Underwriting : is an agreement by the underwriter to buy on a fixed date and at a fixed rate, the unsubscribed portion of shares or debentures or other issues. Underwriter gets commission for this agreement. When Banks and Financial Institutions are Universal Banking : allowed to undertake all types of activities related to banking like acceptance of deposits, granting of advances, investment, issue of credit cards, project finance, venture capital finance, foreign exchange business, insurance etc. it is called Universal Banking.

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Virtual banking is also called internet banking, Virtual Banking : through which financial and banking services are accessed via internet's world wide web. It is called virtual banking because an internet bank has no boundaries of brick and mortar and it exists only on the internet. Wholesale banking is different from Retail Wholesale Banking : Banking as its focus is on providing for financial needs of industry and institutional clients.

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FINANCIAL & BANKING AWARENESS MCQs

1) At present number of public sector banks inIndia: a) 26 b) 27 c) 28 d) 29 e) None of these 2) At present number of private sector banks inIndia: a) 21 b) 22 c) 23 d) 24 e) None of these 3) Nationalisation of 14 major banks in………………….. a) 1949 b) 1955 c) 1959 d) 1969 e) None of these 4) Nationalisation of six banks in………………………….. a) ) 1949 b) 1955 c) 1959 d) 1969

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e) 1980 5)The largest commercial bank inIndia: a) SBI b) ICICI Bank c) PNB d) HDFC Bank e) None of these 6) The Second largest public sector commercial bank inIndia: a) Punjab National Bank b) Bank of Baroda c) Bank of India d) IDBI Bank e) Corporation Bank 7) The Largest private sector commercial bank inIndia: a) AXIS Bank b) HDFC Bank c) ICICI Bank d) Federal Bank e) None of these 8) The second largest private sector commercial bank inIndia: a) IDBI Bank b) AXIS Bank c) HDFC Bank d) ICICI Bank e) None of these

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9) The first Indian bank to open a branch outsideIndiainLondonin 1946: a) State Bank of India b) Punjab National Bank c) Bank of Baroda d) Canara Bank e) Bank of India 10) Latest Public Sector Bank inIndia: a) SBI b) ICICI Bank c) HDFC Bank d) IDBI Bank e) None of these 11) Latest Private Sector Bank inIndia: a) Federal Bank b) South Indian Bank c) YES Bank d) Kotak Mahindra Bank e) None of these 12) The Largest foreign bank operating inIndia: a) Citi Bank b) HSBC c) Barclays Bank d) ABN Amro Bank e) Standard Chartered Bank

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13) Which bank is the largest issuer of credit cards inIndia? a) SBI b) ICICI Bank c) HDFC Bank d) IDBI Bank e) None of these 14) Who is the current MD & CEO of ICICI Bank? a) Shyamala Gopinath b) Shikha Sharma c) Chanda Kochhar d) Renu Challu e) Sushma Nath 15) The Chairman of Indian Banks Association(IBA) (For 2011-12): a) M.D.Mallya b) Pratip Chaudhuri c) D.Subbarao d) Subir Gokarn e) U.K.Sinha 16) The largest bank inChina: a) Industrial and Commercial Bank of China Ltd. (ICBC) b) Hongkong and Shanghai Banking Corporation(HSBC) c) Deutsche Bank AG d) BNP Paribas e) DBS Bank

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17) Bad loans in banking terminology are generally known as………………… a) CBS b) PLR c) NPAs d) CRR e) None of these 18) In Financial Term NPA, P stands for……….. a) Potential b) Peforming c) Prodiction d) Professional e) None of these 19) Which of the following pairings is wrong? (Bank & Country) a) Citi Bank : USA b) ABN AMRO Bank : TheNetherlands c) BNP Paribas :Russia d) Hongkong and Shanghai Banking Corporation(HSBC) :United Kingdom e) Deutsche Bank AG :Germany 20) Which of the following pairings is wrong? (Bank & Country) a) Barclays Bank : United Kingdom b) J P Morgan Chase Bank :USA c) Societe Generale :France d) Standard Chartered Bank :South Africa e) Sonali Bank :Bangladesh

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21) The New Capital Adequacy Framework prescribed for the banks is commonly known as …………. a)KYC norms b)Credit Policy c)Basel Accord d)Fiscal Policy e) None of these 22) The central bank of theUnited States: a) Citi Group b) Bank ofAmerica c) JP Morgan Chase d) Federal Reserve e) Bank for International Settlements 23) Which of the following pairings is wrong? (Bank & Tagline) a) State Bank ofIndia: With you all the way b) Punjab National Bank : The name you can BANK upon! c) Bank ofBaroda:India’s International Bank d) Oriental Bank of Commerce : Where every individual committed e) Bank of India : The World’s local bank 24) Axis Bank previously called as………. a) IDBI Bank b) HDFC Bank c) YES Bank d) ICICI Bank e) UTI Bank

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25) Which of the following is not a commercial bank? a) IDBI Bank b) HDFC Bank c) ICICI Bank d) EXIM Bank e) AXIS Bank 26) Which of the following pairings is wrong?(Bank/Financial Institution & Establishment Year) a) RBI : April 1, 1935 b) SBI : July 1, 1955 c) NABARD : July 12, 1982 d) NHB : July 9, 1988 e) SIDBI : April 1, 1990 27) The largest bank inPakistan: a) State Bank of Pakistan b) Habib Bank Limited c) Sonali Bank d) DBS Bank e) None of these 28) Consider the following sentences: A. Non Performing Asset (NPA) is an asset, including a leased asset, becomes non performing when it ceases to generate income for the bank. B. Core banking is a general term used to describe the services provided by a group of networked bank

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branches. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions. C. Banking Ombudsman is an independent dispute resolution authority provided by RBI to deal with disputes that bank customers have with their respective banks. D. Base Rate is the minimum rate of interest that a bank is allowed to charge from its customers. Unless mandated by the government, RBI rule stipulates that no bank can offer loans at a rate lower than base Rate to any of its customers. E. NBFC or Non Banking Financial Companies is a company inIndia, which is registered under the Companies Act, 1956, and which provides banking services without meeting the legal definition of a bank. Which of the statements given above is/are correct? a) Only A & B b) Only B & C c) Only C & D d) Only D & E e) All are correct 29) Which of the following is the Apex level institution for housing? a) EXIM Bank b) NABARD c) NHB d) SIDBI e) None of these

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30) Which of the following is not a nationalized bank? a) PNB b) Indian Bank c) Bank of India d) Karnataka Bank e) Canara Bank 31) Which of the following banks was merged with ICICI Bank in 2010? a) Bank of Rajasthan b) Bank of Maharashtra c) Karnataka Bank d) State Bank ofIndore e) Global Trust Bank 32) Which of the following banks was merged with SBI in 2010? a) State Bank of Travancore b) State Bank of Mysore c) State Bank of Indore d) State Bank of Saurashtra e) State Bank of Hyderabad

ANSWERS 1) a 2) b 3) d 8) c 9) e 10) d 11) c 12) e 13) b 18) b 19) c 20) d 21) c 22) d 23) e 28) e

29) c

30) d

4) e

5)a

6)a

7) c

14) c

15) a

16) a

17) c

24) e

25) d

26) e

27) b

31) a

32)c 453

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