BANKING & GENERAL

AWARENESS

A complete Guide to prepare Banking Awarenes

IBPS CWE 2012

Creator of this eBook

Ashok Lothia

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BANKING & GENERAL AWARENESS

A complete Guide to prepare Banking Awareness

by Ashok Lothia

Contact us AshokLothia@Gmail.com

Contents

Indian Banking Industry: Emerging Trends 1

Financial Literacy in India 9

Economic Survey to have special chapter on financing 18

of climate change

Bankrolling the banks 19

BANK EXAMS GENERAL AWARENESS PRACTICE 21

QUESTIONS

RBI releases Mid Quarter Monetary Policy Review 33

BANK EXAMS GENERAL AWARENESS MCQs 40

Crisis management group for financial markets on 50

cards

IBPS CLERKS EXAM GENERAL AWARENESS 52

MODEL PAPER

IBPS CWE GENERAL AWARENESS MODEL PAPER 67

Equip ATMs to accept cash directly, suggests panel 78

IRDA launched Two Online Initiatives to Safeguard the 81

Interest of Insurance-seekers

GENERAL KNOWLEDGE PRACTICE MCQs 83

Market Capitalization of all 24 Listed Public Sector 94

Banks below that of 15 Listed Private Banks

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 123

Punjab to Launch Core Banking Solution

Indian Bank launched e-banking Lounge & Inter-bank 124

Mobile Payment Services

K. S. Sreenivasan appointed non-official director on 125

board of Oriental Bank of Commerce

Fresh Capital to be infused in SBI to help it achieve 126

Compliance with Capital Adequacy Ratio Norms

Ratings Firm Moody's downgraded Indian Banking 127

System's Rating outlook from Stable to Negative

IBPS CWE GENERAL AWARENESS MODEL 128

SOLVED PAPER

IBPS CWE GENERAL AWARENESS MODEL 145

SOLVED PAPER

IBPS CLERKS GENREAL AWARENESS MODEL 162

PAPER

IBPS BANKING AWARENESS PRACTICE MODEL 180

PAPER

IBPS BANKING AWARENESS PRACTICE 198

QUESTIONS

SBI Associate Banks Probationary Officers Exam., 205

2011

GENERAL AWARENESS MODEL QUESTIONS 222

Women use their debit cards less frequently, reveals 231

RBI survey

Customer service slips in public sector banks 233

Regional rural banks see healthy growth in saving bank 236

deposits

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 267

QUESTIONS

Moody’s cuts outlook on Indian banking system to 278

negative

Taxation system in India 281

Overview of Indian Financial System 288

Financial System in India 297

STOCK EXCHANGE, COMMODITY EXCHANGE 300

RELATED TERMS

IBPS CLERKS EXAM GENERAL STUDIES 311

PRACTICE QUESTIONS

Human Development Report 2011 329

GENERAL AWARENESS MCQs FOR BANK EXAMS 345

IBPS GENERAL AWARENESS SOLVED QUESTIONS 365

IBPS GENERAL AWARENESS PRACTICE 376

QUESTIONS

IBPS GENERAL AWARENESS MCQs 393

BANKING & FINANCIAL TERMS 407

BANKING TERMINOLOGY 425

FINANCIAL & BANKING AWARENESS MCQs 445

Indian Banking Industry : Emerging Trends

Fierce competition, innovative strategies and competitive

spirit have satiated banks with palpating activities. Banksare adopting different strategies in an environment of increased

competitive pressure. Active strategies with focus on new fields ofbusiness and defensive strategy concentrating on cost cutting areembraced together. Flawless service delivery is the target withdiffused liabilities and multiple choices available to customers.Technology has completely changed the nature and pace ofdelivery of banking services world over. The speed hasconsiderably 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 in1990s to extend its working para-meters beyond geographical borders. The banking reform has indeed helped to restoresemblance of efficiency and stability. Our banking industry enjoysgreater autonomy, operational flexibility and liberalized normsallowing it to be more com-petitive. Technology Driven Indian Banking SystemThe growing universalisation and internationalisation of bankingoperations have altered the face of banks from one of mereinter-mediator to one of provider of quick, efficient and consumercentric ser-vices. There has been massive use of technologyacross 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, wherethe technology behind the application is in its infancy and asubstantial amount of investment is required so as to make theapplication widely available commercially; the growth phase, where the application is increasingly available to the custo-mersand the technology behind the application is widely available; andthe maturity phase, wherein the application is in widespread useand 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 inIndian banking on the march of technology.1. Technological Changes in Indian Banking SystemCore Banking Systems —The introduction of Core BankingSystems (CBS) which was at its nascent stages has become fullblown and all banks are at varying stages of implementation ofCore Banking Systems in their branches. There are 5 ingredientsthat form part of the Core Banking system viz. General LedgerCustomer, Information System, Deposit System, Loan Systemand Management Information System.INFINET—INFINET (Indian Financial Network), is used by a largenumber of banks for funds and non-funds-based message transfers,and is made available by the Institute for Development andResearch in Banking Technology (IDRBT), Hyderabad. INFINETis perhaps among the few networks in the world which uses thelatest in technology and security called Public KeyInfrastructure—PKI, which is not only state-of-the-art and robust butalso well within the legal requirements of the Information

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Technology Act, 2000.National Electronic Funds Transfer System— RBI introducedan electronic funds transfer system to facilitate an efficient, secure, econo-mical, reliable and expeditious system of funds transfer andclearing in the banking sector throughout India, and to relieve thestress on the existing paper-based funds transfer and clearingsystem called National Electronic Funds Transfer System (NEFTSystem).The parties to a funds transfer under this NEFT System are thesending bank, the sending Service Centre, the NEFT ClearingCentre, 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.National Electronic Clearing Services —The objective ofNational Electronic Clearing Services (NECS) is to facilitatecentralised processing for repetitive and bulk paymentinstructions. Sponsor banks shall submit NECS data at a singlecentre viz. at Mumbai. While NECS (Credit) shall facilitate multiplecredits to beneficiary accounts at destination branch against asingle debit of the account of a User with the sponsor bank, theNECS (Debit) shall facilitate multiple debits to destination accountholders against single credit to user account.Centralized Funds Management System —The CentralizedFunds Management System (CFMS), is a system to enableoperations on current accounts maintained at various offices ofthe Bank, through standard message formats in a secure manner. Itis set up, operated and maintained by the Reserve Bank of India.Mobile Banking Services —Mobile payments is defined asinfor-mation exchange between a bank and its customers for

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financial transactions through the use of mobile phones. Mobilepayment involves debit/credit to a customer’s account’s on thebasis 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 haveimplemented core bank-ing solutions would be permitted to

provide mobile banking services. Banks shall file SuspiciousTrans-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 shalladopt the message formats like ISO 8583, with suitable modificationto address specific needs. Hence, banks offering mobile bankingshould notify the customers the timeframe and the circumstances inwhich any stop-payment instructions could be accepted.

2. Current Position of Technological Banking Services

Drift Towards Innovative Banking1. Presence of Women on BoardsBanking in the West has tradi-tionally been a male bastion andcontinues to be so. Study titled “Women on Corporate Boardsin 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 theirboards appearing at the top. The BSE-100 comprises 26 industryclassifications with the banking industry making up the largestgroup of companies.

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Indian banks, with better gender equality on board than their

western counterparts, scraped though the economic slowdownunscathed.Kalpana Morparia heads the Indian arm of global financial leviathan J. P. Morgan Chase & Co; Meera Sanyal is the countryexecutive for Royal Bank of Scotland and; Manisha Girotra isthe managing director of Union Bank of Switzer-land’s Indiaoperations. K. J. Udeshi is the Chairman of Governing Council ofBCSBI.2. Mobile BranchesDomestic scheduled commercial banks (other than RRBs) weregranted general permission by RBI, to opera-tionalise Mobilebranches in Tier 3 to Tier 6 centres (with population upto 49,999 as

per Census 2001) and in rural, semi urban and urban centres inthe North Eastern States and Sikkim, subject to reporting.The mobile branch should be stationed in each village/location fora reasonable time on specified days and specified hours, sothat its services could be utilized properly by customers. Thebusiness transacted at the mobile branch shall be recorded in thebooks of the base branch/data centre. The bank may give widepublicity about the mobile branch in the village, includingdetails of ‘specified days and working hours’ at various locationsso as to avoid any confusion to local customers; and any change inthis regard should also be publicized.3. Social Responsibility, Sustain-able Development andNon-Financial ReportingGovernment infused into bank-ing sector the ‘socialist’ constituentthrough nationalization of major banks.

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CSR entails the integration of social and environmental concernsby companies in their business opera-tions as also in interactions

with their stakeholders. SD essentially refers to the process ofmaintenance of the quality of environmental and social systems inthe pursuit of economic development. NFR is basically a systemof reporting by organizations on their activities in this context,especially as regards the triple bottom line, that is, theenvironmental, social and economic accounting.RBI circular (dated December 20, 2007) on Role of Banks inCor-porate Social Responsibility, Sustain-able Development andNon-Financial Reporting is appreciable. Stressing the need forCorporate Social Res-ponsibility (CSR), RBI pointed out that theseinitiatives by the banks are vital for sustainable development.Banks have been directed to start; non-financial reporting will helpto audit their initiatives towards the corporate social responsibility(CSR). Such a reporting will cover the work done by the bankstowards the social, economic and environmental better-ment of

society.4. Universal BankingUniversal Banking refers to those services offered by banks beyondtraditional banking service such as saving accounts and loansand includes Pension Funds Manage-ment, undertakingequipment leas-ing, hire purchase business and factoring

services, Primary Dealer-ship (PD) business, insurance busi-nessand mutual fund business.The issue of universal banking came to limelight in 2000, whenICICI gave a presentation to RBI to discuss the time frame andpossible 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 fortransition to a universal bank for consideration and furtherdiscussions. FIs need to for-mulate a road map for the transitionpath and strategy for smooth con-version into an universal bank

over a specified time frame. The plan should specifically provide forfull com-pliance with prudential norms as applicable to banksover the pro-posed period. Though the DFIs would continue tohave 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 optionto transform into bank (which it can exercise), provided theprudential norms as applicable to banks are fully satisfied. To thisend, a DFI would need to prepare a transition path in order to fullycomply 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.ConclusionThe applicability of various existing laws and banking practices toe-banking is not tested and is still evolving, both in India andabroad. With rapid changes in technology and innovation in the field

of e-banking, there is a need for constant review of different lawsrelating to banking and commerce. A re-orientation of strategyis required in order to accommodate the changes and challenges ofthe present globa-lised scenario.Technological developments may become threat but still enablebanks 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 itsservices. Clientele are reveling sophisticated services specific

needs, preferences and conveniences by the banks.

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Financial Literacy in India

The Essence of MoneyWe all acknowledge the fact that money is essential for sheerexistence and survival yet tend to escape from learning how to

manage money. Managing money means the ability to judiciouslysave and multiply the money earned, through an informedunderstanding of the financial pro-ducts and services available. It isalso the question of avoiding risks and being protected from fallingprey to unscrupulous elements. In my opinion the single mostcritical 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 easymoney overpowers application of mind and the capacity to thinksanely. We ignore the fact that money invested legally and ethicallycan hardly ever give returns which are disproportionate with respectto pre-vailing market conditions. Yet regu-larly we hear of peoplelosing their hard earned money by succumbing to fraudulent schemes which promise attractive returns or trusting someone whotempts 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 incon-formity with market norms. Our indulgence in fancy schemesand faith in promoters whose credentials are not verified arises dueto 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 byapproaching the respective authorities for redressal. We need to

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respect money for its value and its significance for sheersurvival. Financial literacy is therefore crucial for the well being of anindividual from any section of society.What is Financial Literacy ?It is not logical to assume that all educated individuals are financiallyliterate and the less educated are weak. In fact the converse could

be true. What then is financial literacy? Simply expressed it is theability to manage one’s personal finance judiciously bymaking best/optimum use of one’s resources. There are different financial products and ser-vices available which cater to differ-entneeds and requirements. Under-standing these products and

services and choosing according to the wants is what constitutesthe right approach. These wants differ from individual to individualand 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 stockmarkets 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 thandubious relationship managers/un-solicited help as trust andintegrity in financial matters are an absolute necessity. It is betterto stay away from complex products and services if the knowledgelevels are low as safeguarding of money is more impor-tant thantaking unwanted risks. With the spread of technology and openingof the economy it has become even more important to select theappro-priate product after due diligence. Though technology hasmade 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 victimof fraudulent transactions.To appreciate the significance and relevance of financial literacy forsound money management it may be worthwhile to capture a fewillustra-tions.(1) Taking the simple example of payment of interest on savingsbank accounts not many still know that interest is now paid on the

daily balance in the account. Rather than withdrawing money whichmay not be immediately required for a week at least it would beprofitable if the same amount remains with the bank as it wouldcontinue to earn interest for the account holder. Better still thesurplus funds in a savings account could be transferred to a fixeddeposit account which would give higher interest.(2) Those seeking loans from banks often do not read the termsand conditions of the bank and blindly sign the documents therebyagreeing to the terms of the document. At times these papers are

signed in blank without even bothering to understand thesignificance of the loan contract. Loan means having to fulfil manyobligations by the bor-rower till it is cleared and pleading ignorancelater does not help. In case of default the assets can be seized bythe lender and the borrower has no scope to protect the assetwithout clearing the dues.(3) Most loan documents require one or more guarantors to signalong with the borrower. This strengthens the lender in case theborrower defaults. How many really know that the guarantor is liableto 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 overdues are charged abnormally high interest rates and interest getscom-pounded every month if the balance remains unpaid. Moreoverservice tax is also levied on the interest amount. Higher the interestamount higher the service tax becomes payable. (5) Non-banking finance com-panies and corporates invite depositsfrom the public with offer of higher interest rates than most banks. It is quite logical for certain persons to be tempted to invest their fundsin these schemes for the additional interest amount. What is ofprime importance is to study thoroughly the back-ground andstrength of the company before investing as the repayment of thedeposit on maturity is not guaran-teed. There are so manyexamples where the companies have not retur-ned the money onmaturity for various reasons. Some have even disappeared from themarket after mobilizing substantial money. Ima-gine the poor personof meager means having to suffer the loss of money as hedeposited in good faith but without full knowledge.(6) RBI regularly releases reports of forged or counterfeit currencynotes in circulation and the need to be cautious. How many of usreally bother to understand the security features of currency notesto identify forged notes and take preventive action. The desiredknow how can stop the fraudulent use of illegal money and preventundesirable con-sequences. RBI’s campaign ‘Paisa Bolta Hai’ isan excellent audiovisual presentation on the measures to check theauthenticity of a currency note.(7) For the sake of credit and debit card holders there are regularwarnings to avoid sharing their PIN and card numbers with any thirdperson. 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 howto operate their cards. The fact that they are inviting trouble isoverlooked for the sake of momentary help. Little do we realize thatknowledge can prevent many untoward happenings ?(8) Insurance policies are pur-chased as tax savings schemesrather 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 fullyeducated himself or avoids suggesting the right policy for makinghigher 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 studycarefully the features of the policy and compare it with his actualneed. Very few really know about this facility which againdemonstrates 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 newissues without blocking one’s funds but very few take advantage of it. SEBI has tried to popularize this facility in many ways throughadvertisement 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 fashionablebecause of the coverage the sector gets. Yet it is a matter of debateas to how many can differentiate between equity or debt funds oreven 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 investoris 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 prudentdecision making. Absence of financial literacy can truly damagesubstantially the interests of the persons concerned. It is difficult toescape for any age group as money is needed by all.The Spread of Financial LiteracyIt 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 andintroducing the age old concepts of having a piggy bank can be awelcome start. Schools need to inculcate these habits in studentsand gradually introduce them to the basics of personal finance. Abeginning has already been made by introducing subjects on basic

finance in the school curriculum at certain centres. Reserve Bank ofIndia is promoting this early education of children by adopting afriendly and entertaining way through the medium of comics. They

are also encouraging the young to participate in contests, thewinners of which are awarded scholarships. It is the vulnerablesections of society like women, senior citizens, the rural and urbanpoor who need to be adequately educated and equipped. TheFinancial Literacy programme of RBI is tackling all these issues

through different means. Their website is a store house ofknowledge provided there is an urge to learn. The individual has to

be proactive and be eager to grasp the necessary knowledge tosafeguard himself and thereby his money. RBI is making extraefforts 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 75thyear of RBI in 2010 in far corners of the country were primarily toeducate the masses about the activi-ties of RBI and how to utilizethe available banking services for their betterment. Most banks also have their finan-cial literacy departments and creditcounseling centres where personal problems are addressed. Howmuch of these centres are successes is deba-table because a verysmall 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 advisableto refer to these portals to avoid making any wrong or improperdecision. 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 beenset up by RBI as an apex body to improve the working of banks andintroduce systemic changes wherever necessary for bettertreatment of customers. While their primary focus remains oncustomer service they are also par-ticipating in disseminatinginforma-tion on different aspects of banking. For an effective literacy

campaign it is important that information asym-metry betweenservice provider and customer is reduced. In this connec-tion bankshave unilaterally under-taken to comply with a Code of Commitmentto Customers detailing the nature of services provided by banks, the

normal time taken for rendering these services and the variousobligations of banks who have signed these codes. Only when thereis awareness can the customers use the code to their benefit. It isfor the individual to take advantage of the provisions provided there

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is will-ingness to learn. BCSBI also publishes a quarterly newsletterwhich is both informative and educative.The importance of promoting financial literacy and the enormity ofthe task is being gradually under-stood. This has made manyorgani-zations enter this field to make their presence felt. Innovativeways have been adopted to keep the literacy efforts simple and userfriendly for maximum benefit. Websites, print media and audiovisual communi-cations relating to financial education are easilyaccessible for the average individual to improve his under-standingof the financial market, its products and services.National dailies, banks, financial institutions, private organisationsare 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 anddissemination of information.Spreading of information and awareness is critical for an emergingeconomy like India. If the vast popu-lation of deprived people isbrought 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 thetargeted people are financial literate. Only then would they be ableto make the most appropriate choice of the pro-ducts and serviceswhich would improve their position. The vast majority of our peopleare extremely vulnerable as they depend upon informal sources of finance for meet-ing their needs. Only by empowering them with theadequate 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 hugeprogress for overall growth. The formal channels of moneytransmission has to be introduced for all round benefit as for far toolong the poor, gullible people have suffered at the hands of themoney lender and his brethren.The international body Orga-nisation for Economic DevelopmentOECD is putting its weight behind RBI in promoting financial literacyin India. There is no running away from this hard fact for which thefinancial service providers are also being trained to encourage

the dissemi-nation of information in as compre-hensive a way aspossible. 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 painstakingbut can be lost in no time if there is improper financial planning.Finan-cial awareness is a critical component in the process ofprotecting and enlarging the corpus of funds that an individual mayhave.

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Economic Survey to have special chapter on financing ofclimate change

The Finance Ministry will include a special chapter on financing ofclimate 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 topicof financing of climate change in the Economic Survey,” Mr Basusaid 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 challengefor the world.“The challenges are both environmental and developmental.Addressing climate change is a challenge for all humanity and it isin 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 resourcesand device new technology to meet the challenges.As per the 2010-11 Economic Survey, India’s total carbon-di-oxideemissions were about 4 per cent of the global emissions. The

survey also showed that it cost India 2.84 per cent of its GDP toadapt 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 capitaladequacy (Basel–III) would require Indian banks to mobilise huge

sums of capital during the next five years. Under the existingBasel-II norms, the Indian banking industry has to maintain totalcapital — drawn from a combination of equity and preferenceshares plus long-term debt, both accorded lower priority to moniesbelonging 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 newnorms, a minor reshuffle has been attempted betweenequity/preference stock holders and long-term bond holders in the

event of a bank failure, with the former having to contribute anadditional one percentage point capital to their existing 6 per cent ofthe total 9 per cent. Further, equity/preference share holders haveto come up with an additional 2.5 percentage points in capital as a

buffer for any unforeseen contingencies. That takes the aggregatecapital adequacy ratio (CAR) to 11.5 per cent, of which commonequity alone would make up 8 per cent. The emphasis is clearly notjust on meeting a broadly defined overall CAR of 8 per cent (as itwas two decades ago), but also on improving the transparency andquality 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 bankingcrises that followed the global recession of 2008 and also the

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ongoing European sovereign debt troubles. These have createdrenewed concerns over the banking sector's ability to withstandfinancial shocks and minimise risks of spill-over to the real economy. But implementation will be a huge challenge, with theestimates of fresh capital needed to be raised by all Indian banksranging anywhere from Rs 1.4 lakh to Rs 3 lakh crore. Given thedominance of public sector banks, it would necessitate largegovernment infusion of funds. Where this money is going to come

from, if the Centre would not even be prepared to dilute its stakebelow 51 per cent, is a huge question mark. This issue came to the

fore not too long back, when Moody's downgraded the State Bankof 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 risingnon-performing assets (NPA) on account of loans to a host oftroubled sectors from telecom and airlines to power. As these mount – under pressure from high interest rates and the general economicslowdown – 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 proposedimplementation schedule for Basel-III, which is seen to be ratherfrontloaded.

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BANK EXAMS GENERAL AWARENESS PRACTICEQUESTIONS

1.Which country's lower house of Parliament is called Wolesi Jirga?1) Russia2) Afghanistan3) Japan4) Pakistan5) 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 byUNESCO.2)This award has been instituted in memory of Mahatma Gandhi.3)This prize of US $ 1, 00,000 was made possible by the donationof the Indian diplo-mat Madanjeet Singh who is also the GoodwillAmbas-sador of UNESCO.4) The 2011 awardees are Afgh-anistan's women's rightscam-paigner Anarkali Honaryar and Palestinian peace activistKhaled 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 Toleranceand Non-Violence in 2002, but was allowed to accept the prize onlyin 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 Dayfor Tolerance?1) October 22) November 163) October 244) October 165) November 14

5.Scientists have found the best evidence yet for water just beneaththe surface of Europa. Europa is the icy moon of which of thefollowing planets?1) Mars2) Saturn3) Jupiter4) Venus5) Uranus

6.Which of the following countries is not a member of the NuclearSuppliers Group (NSG)?1) USA2) Australia3) Canada4) India5) France

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7.Metro Cash& Carry is planning to invest Rs. 2400 crore in India onnew stores in the next four years. To which country does thisretailing giant belong?1) Germany2) Indonesia3) Singapore4) Malaysia5) USA

8.The renovated Advanced Landing Ground (ALG) of Vijay-nagar, a

completely air-mainta-ined and strategically located humansettlement, was inaugur-ated recently. In which state is thisVijaynagar airfield located?1) Assam2) Nagaland3) Karnataka4) Arunachal Pradesh5) 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) Karnataka2) Kerala3) Tamil Nadu4) Maharashtra5) None of these

23

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 Singh2) Narinder Singh3) Swaraj Paul4) P.Venkat Ram Reddy5) None

11.What is the disinvestment target for the current financial year i.e.2011-12?1) Rs.25, 000 crore2) Rs.30, 000 crore3) Rs.40, 000crore4) Rs.50, 000 crore5) None

12.Gloria Macapagal Arroyo was arrested for electoral fraudrecently. She was the President of which of the following countriesfrom 2001 to 2010?1) Singapore2) Philippines3) Venezuela4) Honduras5) Vietnam

13.Sarath Fonseka was sentenced to spend three more years inprison in November 2011. He is the former army chief of which ofthe following countries?

24

1) Nepal2) Mauritius3) Sri Lanka4) Pakistan5) Myanmar

14.Which of the following badmi-nton tournaments was won bySaina Nehwal in the year 2011?1) Singapore Super Series2) Indonesia Super Series3) Hong Kong Super Series4) All England Badminton Championship5) None

15.Guru Saidutt excelled in which of the following sports?

1) Table Tennis2) Badminton3) Lawn Tennis4) Volleyball5) Basketball

16.Which of the following trains covers the largest rail route in thecountry 4,286 km?1) Vivek Express (Dibrugarh to Kanya Kumari)2) Himsagar Express (Jammu Tawi to Kanya Kumari)3) Dibrugarh-Chennai Express4) Howrah-Amritsar Express5) None of these

25

17.Sukh Ram was sentenced to five years' imprisonment by aspecial CBI Court in November 2011. He was a Minister of State forCommunications in which of the following governments?1) A.B.Vajpayee2) P.V.Narasimha Rao3) Rajiv Gandhi4) Indira Gandhi5) 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) Russia2) Kazakhstan3) Belarus4) Georgia5) All the above mentioned countries are members

19.Basil D' Oliveira, the South Africa-born English player passedaway recently. He was a renowned player in which of the followingsports?1) Football2) Cricket3) Rugby4) Basketball5) Boxing

20.Which Indian leader was honored by Singapore as a "Friend toour Shores" and a "Visionary" in November 2011?

26

1) Jawaharlal Nehru2) Mahatma Gandhi3) Sardar Vallabhbai Patel4) Indira Gandhi5) A.B.Vajpayee

21.Which of the following groups/ organizations has funded a sportscentre in Ramallah, Palestine?1) BRICS2) BASIC3) IBSA4) SAARC5) APEC

22.Which was the first non-Arab state to recognize the Palestine

Liberation Organization (PLO) in 1975?1) India2) Israel3) China4) USA5) France

23.The Bar Council of India (BCI) was formed in 1961 as aregulatory body for the legal profession governed by the IndianAdvocates Act. It is celebrating its golden jubilee. Who is its presentChairman?1) Satish Abarao Deshmukh2) Ashok K. Parija3) S.Prabakaran

27

4) T.S.Ajith5) None of theses

24.Tipaimukh Dam is a proposed dam on the river Barak in whichstate of India? (This project has led to a controversy between India

and Bangladesh)1) Assam2) Nagaland3) Manipur4) Tripura5) Arunachal Pradesh

25.Which team was crowned overall champions at the 65th SeniorNational Aquatic Championships in Ranchi in November 2011?1) Karnataka2) Maharashtra3) Railways4) Kerala5) Gujarat

26.Which woman swimmer won 5 gold medals in the 65th SeniorNational Aquatic Championships held in Ranchi in November 2011?1) Pooja Alva2) Richa Mishra3) Bhoomi Motwani4) Talasha Prabhu5) Surabhi Tipre

27.Who won the Men's singles title at the Hong Kong Open

28

badminton championships in November 2011?1) Lin Dan2) Chen Jin3)Cai Yun4)Fu Haifeng5)None

28.Which of the following teams won the Presidents Cup golftournament in November 2011?1) Internationals2) USA3) Europe4) Australia5) 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 inNove-mber 2011?1) Canada2) Pakistan3) USA4) India5) Australia

30.Who has been selected for the Indira Gandhi Prize for Peace,Disarmament and Development 2011, an award instituted by theIndira Gandhi Memorial Trust?1) Sheikh Hasina2) Ela Bhatt

29

3) Angela Merkel4) Hillary Clinton5) 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 thefollowing countries?1) Pakistan2) Bangladesh3) Iran4) Afghanistan5) Syria

33.Which of the following institut-ions decides the Bank rate?

1) SEBI2) SBI3) IRDA4) NABARD5) RBI

34.Which scientist was conferred with the Ernesto Illy TriesteScience Prize for 2011 in November 2011? (This prize was

instituted by the Academy of Sciences of the Developing World. It

30

carries a cash compo-nent of 1,00,000 dollars. It seeks to honordistinguished scientists from developing countries.)

1) Tessy Thomas2) V.K.Saraswat3) C.N.R Rao4) Venkatraman Ramakrishnan5) None of these

35.National Income Accounting, Conduct of Annual Survey ofIn-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 India2) Planning Commission3) Central Statistics Office4)National Development Council5)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) Pakistan2) Nepal3)China4)Bangladesh5)Bhutan

37.Which of the following organiz-ations/ agencies was set up toboost overall rural development in India?1) RBI

31

2) SIDBI3) NABARD4) SEBI5) None of these

38.BR Act controls banking activities in India. What does the letter'R' denote?1) Reformation2) Regulation3) Reporting4) Ranking5) None of these

39.Who is the ex-officio Chairman of the Rajya Sabha?1) Meira Kumar2) Mohammad Hamid Ansari3) Karia Munda4) K.Rahman Khan5) 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)

32

RBI releases Mid Quarter Monetary Policy Review

Monetary MeasuresOn the basis of the current macroeconomic assessment, it has beendecided 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 remainunchanged at 7.5 per cent and the marginal standing facility (MSF) rate at 9.5 per cent.IntroductionSince the Reserve Bank’s Second Quarter Review (SQR) ofOctober 25, 2011, the global economic outlook has worsenedsignificantly. The recent European Union (EU) summit agreementdid not assuage negative market sentiments, thereby increasing thelikelihood of persistent financial turbulence as well as a recession inEurope. 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 reflectsthe combined impact of several factors: the uncertain globalenvironment, the cumulative impact of past monetary policytightening and domestic policy uncertainties. Both inflation and inflation expectations are currently above the

comfort level of the Reserve Bank. However, reassuringly,

33

inflationary pressures are expected to abate in the coming monthsdespite high crude oil prices and rupee depreciation. The growthdeceleration is contributing to a decline in inflation momentum, which is also being helped by softening food inflation.Global EconomyThe global economic situation continues to be fragile with nocredible solution as yet to the immediate euro area sovereign debtproblem. 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 theagreement is necessary for medium and long-term sustainability ofthe euro area, its ability to resolve short-term funding pressures wasquestioned by markets. Q3 euro area growth, at 0.8 per cent, was

anaemic and 2012 growth is now expected to be weaker thanearlier projected. Reflecting these projections, the EuropeanCentral 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 tocontain inflation. In view of the slowing down of their economies,Brazil, Indonesia, Israel and Thailand cut their policy rates, whileChina cut its reserve requirements. EME currencies have also comeunder varying degrees of downward pressure as a result of globalrisk aversion and financial stress emanating from the euro area.Domestic economy

34

GrowthGDP growth moderated to 6.9 per cent in Q2 of 2011-12 from 7.7per cent in Q1 and 8.8 per cent in the corresponding quarter a yearago. The deceleration in economic activity in Q2 was mainly on

account of a sharp moderation in industrial growth. On theexpenditure side, investment showed a significant slowdown.Overall, during the first half (April-September) of 2011-12, GDPgrowth slowed down to 7.3 per cent from 8.6 per cent last year.Industrial performance has further deteriorated as reflected in thedecline of the index of industrial production (IIP) by 5.1 per cent,y-o-y, in October 2011. This was mainly due to contraction inmanufacturing and mining activities. The contraction wasparticularly sharp in capital goods with a y-o-y decline of 25.5 percent, reinforcing the investment decline story emerging from theGDP 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 ingrowth in November 2011. However, PMI-services index recovered

in November from contractionary levels in the preceding twomonths. Corporate margins in Q2 of 2011-12 moderated

significantly as compared with their levels in Q1. The decline inmargins 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 sofar has been satisfactory, with area sown under foodgrains andpulses so far being broadly comparable with that of last year. Inflation

35

On a y-o-y basis, headline WPI inflation moderated to 9.1 per centin November from 9.7 per cent in October, driven largely by declinein primary food articles inflation. Fuel group inflation went upmarginally. Notably, non-food manufactured products inflationremains elevated, actually increasing to 7.9 per cent in Novemberfrom 7.6 per cent in October, reflecting rising input costs. The newcombined (rural and urban) consumer price index (base: 2010=100)rose further to 114.2 in October from 113.1 in September. Inflationin terms of other consumer price indices was in the range of 9.4 to9.7 per cent in October 2011. Reassuringly, headline momentumindicators, such as the seasonally adjusted month-on-month and3-month moving average rolling quarterly inflation rate, show

continuing signs of moderation. External sectorMerchandise exports growth decelerated sharply to an average of13.6 per cent y-o-y in October-November from an average of 40.6per cent in the first half of 2011-12. However, as imports moderatedless than exports, the trade deficit widened, putting pressure on thecurrent account. This, combined with rebalancing of global portfoliosby foreign institutional investors and the tendency of exporters todefer 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, theday on which the US debt downgrade happened. In the face of this,several measures were taken to attract inflows. Limits oninvestment in government and corporate debt instruments by

foreign investors were increased. The ceilings on interest ratespayable on nonsresident deposits were raised. The allsinscost

36

ceiling for external commercial borrowings was increased. Further, a series of administrative measures that discourage speculativebehaviour were also initiated. The Reserve Bank is closelymonitoring the developments in the external sector and it willrespond to the evolving situation as appropriate. Fiscal SituationThe central government’s key deficit indicators worsened during2011-12 (April-October), primarily on account of a decline inrevenue 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 ifadjusted for more than budgeted spectrum proceeds received lastyear). The likely slippage in this year’s fiscal deficit has inflationaryimplications.Money, Credit and Liquidity ConditionsThe y-o-y money supply (M3) growth moderated from 17.2 per centat the beginning of the financial year to 16.3 per cent on December2, 2011, although still higher than the projected trajectory of 15.5per cent for the year. Y-o-y non-food credit growth at 17.5 per centon December 02, 2011, however, was below the indicativeprojection of 18 per cent.Consistent with the stance of monetary policy, liquidity conditions

have remained in deficit during this fiscal year. However, the deficitincreased significantly beginning the second week of November 2011. The average borrowings under the daily LAF increased toaround ` 89,000 crore during November-December (up toDecember 15, 2011) from around `49,000 crore duringApril-October 2011. The Reserve Bank conducted open market

37

operations (OMOs) on three occasions in November-December2011 for an amount aggregating about ` 24,000 crore to easeliquidity conditions.There are currently no significant signs of stress in the moneymarket. The overnight call money rate is stable around the policyrepo rate and liquidity facilities such as marginal standing facility(MSF) remain unutilised. However, in view of the fact thatborrowings from the LAF are persistently above the Reserve Bank'scomfort zone, further OMOs will be conducted as and when seen tobe appropriate.OutlookGlobal growth for 2011 and 2012 is now expected to be lower thanearlier anticipated. Increased strains in financial markets on theback of growing concerns over euro area sovereign debt, limitedmonetary and fiscal policy manoeuvrability, high unemploymentrates, 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-roundslower growth, inflation has also started declining, both in advanced

countries and EMEs.On the domestic front, agricultural prospects look promising on theback of expected record kharif output and satisfactory progress onrabi 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 domesticmacroeconomic situation, the downside risks to the Reserve Bank’sgrowth projection, as set out in the SQR, have increasedsignificantly.

38

Between the First Quarter Review (FQR) and the SQR, whilenon-oil commodity prices had declined significantly, the rupee toohad depreciated sharply. Consequently, the headline inflationprojection at 7 per cent for March 2012, as set out in the FQR, wasretained in the SQR. With moderation in food inflation in November2011 and expected moderation in aggregate demand and hence innon-food manufactured products inflation, the inflation projection forMarch 2012 is retained at 7 per cent. The Reserve Bank will make a formal numerical assessment of itsgrowth and inflation projections for 2011-12 in the third quarterreview of January 2012.GuidanceWhile inflation remains on its projected trajectory, downside risks togrowth have clearly increased. The guidance given in the SQR was

that, based on the projected inflation trajectory, further rate hikesmight 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 arelikely to reverse the cycle, responding to the risks to growth.However, it must be emphasised that inflation risks remain high andinflation could quickly recur as a result of both supply and demandforces. Also, the rupee remains under stress. The timing andmagnitude of further actions will depend on a continuing

assessment of how these factors shape up in the months ahead.

39

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) JNNURM2) IAY3) Bharat Nirman4) MGNREGA5) None of these

2. Mario Monti became the new Prime Minister of which of thefollowing countries in November 2011? (He succeeded SilvioBerlusconi)1) France2) Greece3) Italy4) Russia5) Poland

3. Which of the following stateme-nts about the InternationalChild-ren's Film Festival is/are correct?

1) The 17th International Childr-en's Film Festival was titled 'TheGolden Elephant'.2) The film festival was organiz-ed by the Children's Film Soc-iety ofIndia (CFSI). Nandita Das is the chairperson of CFSI.3) In the Indian competition section, 'Chillar Party' won the BestFeature Film.

40

4) Alafzar(Meadow), an Iranian film, was adjudged the Best FeatureFilm in the Competit-ion International section. 5) All the above are correct.

4. Which of the following countries was suspended from the ArabLeague in November 2011?1) Qatar2) Syria3) Jordan4) Libya5) Saudi Arabia

5. Which is the first Indian comp-any to be listed in NASDAQ?1) TCS2) Reliance3) Infosys4) Wipro5) None of these

6. With which game is Vijay Hazare Trophy associated?1) Hockey2) Football3) Tennis4) Table Tennis5) Cricket

7. Which of the following countries is not a member of ASEAN?1) Pakistan2) Indonesia

41

3) Singapore4) Malaysia5) Thailand

8. Renowned cricket writer Peter Roebuck committed suiciderecently. He was the captain of which of the following Englishcounty teams in the 1980s?1) Oxford shire2) Somerset3) Kent4) Essex5) Sussex

9. Which city hosted the 17th International Children's Film Festivalin November 2011?1) Mumbai2) Bangalore3) Hyderabad4) New Delhi5) None of these

10. Who was named the Male World Athlete of the Year for 2011 by

athletics' governing body, the International Association of AthleticsFederation (IAAF)?1) Yohan Blake (Jamaica)2) Kirani James (Grenada)3) Usain Bolt (Jamaica)4) LaShawn Merritt (USA)5) None of these

42

11. Sally Pearson, the world 100m hurdles champion, was namedthe Female World Athlete of the year for 2011 by the IAAF. Towhich country does she belong?

1) Australia2) New Zealand3) U.K.4) U.S.A.5) Denmark

12. Which of the following awards/ prizes is given for science?1) Templeton Prize2) Jnanpith Award3) Phalke Ratna4) Shanti Swarup Bhatnagar Award5) 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 Bhagat2) Navtej Sarna3) Mulk Raj Anand4) Khushwant Singh5) None of these

14. Which of the following is not a plantation crop?1) Rubber2) Arecanut3) Cocoa

43

4) Potato5) Coconut

15. The term Bull's eye is associated with which of the followingsports?1) Badminton2) Boxing.3) Shooting4) Cricket5) Hockey

16. Which of the following is/are considered as allied agriculturalactivity?1) Poultry2) Fisheries3) Dairy4) Sheep rearing5) All the above

17. Which of the following program-mes was launched by the

govern-ment to develop rural infrastruct-ure in India?1) SHGs2) Bharat Nirman3) JNNURM4) IAY5) None of these

18. Which of the following is not the name of a foreign bank?1) BNP Paribas

44

2) Deutsche Bank3) Barclays4) Cathay Pacific5) RBS

19. Which of the following schemes has been successful inattracting children to come to school and get educated?1) MGNREGA2) Food for Work3) Mid Day Meal4) NRLM5) None of these

20. Guru Tegh Bahadur Gold Cup tournament is associated withwhich of the following sports?1) Hockey2) Badminton3) Cricket4) Soccer5) None of these

21. Where is the National Commo- dity and Derivatives ExchangeLimited (NCDEX) located?1) Hyderabad2) Mumbai3) Kolkata4) Bangalore5) New Delhi

45

22. Which former Chief Election Commissioner is the author of thebook 'The Miracle of Demo-cracy: India's Amazing Journey'?1) T.N.Seshan2) M.S.Gill3) B.B.Tandon4) T.S.Krishnamurthy5) Navin Chawla

23. What is the full form of 'POS'?1) Permission of Sale2) Point of Sale3) Point of Support4) Potential of Service5) None

24. Which of the following is not a banking term?1) Overdraft2) CBS3) Equator4) Account payee5) SME Finance

25. The Doing Business Report (DBR) is released every year by

which of the following instituti-ons?1) IMF2) World Bank3) WTO4) ADB5) UNCTAD

46

26. Which of the following banking terms is used to describe badloans?1) CBS2) NPA3) RTGS4) Prime Loans5) Prime Assets

27. Which country's currency is called Yen?1) China2) North Korea3) South Korea4) Japan5) Thailand

28. Which of the following approves the draft of the Five YearPlans?1) Planning Commission2) National Innovation Council 3) National Development Council4) Finance Commission5) None of these

29. Which of the following is an extra-constitutional andnon-statutory body?1) Election Commission2) Finance Commission3) Planning Commission

47

4) Union Public Service Commission5) None of these

30. Which of the following gives Crystal Award?1) WTO2) WEF3) APEC4) IBRD5) ADB

31. Which of the following decides the distribution of tax incomesbetween the central and state governments?1) Law Commission2) Pay Commission3) Planning Commission4) Finance Commission5) Administrative Reforms Commission

32. Who is the author of the book 'Termites in the Trading System'?1) Jagdish Bhagwathi2) Amartya Sen3) M.S.Swaminathan4) Paul Krugman5) None of these

33. Which of the following is not a football club?1) Chelsea2) Arsenal3) Manchester United

48

4) Monte Carlo5) Liverpool

34. Putrajaya is the administrative capital of which of the followingcountries?1) Malaysia2) Indonesia3) Sri Lanka4) Nepal5) None of these

35. Which of the following South American countries is a member of the Organization of Petroleum Exporting Countries (OPEC)?1) Peru2) Ecuador3) Chile4) Brazil5) Argentina

ANSWERS:1) 4 2) 3 3) 5 4) 2 5) 36) 5 7) 1 8) 2 9) 3 10) 311) 1 12) 4 13) 2 14) 4 15) 316) 5 17) 2 18) 4 19) 3 20) 121) 2 22) 4 23) 2 24) 3 25) 226) 2 27) 4 28) 3 29) 3 30) 231) 4 32) 1 33) 4 34) 1 35) 2

49

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 shapeon December 8, when the sub-committee of the Financial Stabilityand Development Council (FSDC) will meet.It is proposed to nominate a Deputy Governor of the Reserve Bankof India as the Chairman, along with senior officials from marketregulator SEBI, insurance regulator IRDA, pension regulatorPFRDA 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 crisisprevention systems in place, an integrated system was needed to

avoid sudden shocks which can quickly spread across marketsegments and institutions. The genesis of the crisis may be differentfrom time to time, but the manifestation is similar.Timely management of the crisis requires early detection of faultlines based on information on diverse institutions and markets, headded.The official explained the whole concept with the impact of Eurozone crisis on the Indian capital and financial systems. Thebenchmark 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-December2, 2011).

50

This and several other factors have impacted the rupee, whichdepreciated by over 15 per cent.On the other hand, a sudden fall in the market price of equity ordebt instruments might trigger redemption pressure on mutualfunds.

Liquid funds

Among mutual funds, as on October 31, 2011, income funds hadthe largest share of assets at 45 per cent, followed by liquid ormoney 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 wasdominated by corporates with 75 per cent share and banks/financial institutions with 20 per cent.Now, when corporates, banks or any other financial institutions faceliquidity shortfall, they start withdrawing from liquid funds.At the same time, fresh investment falls, leading to liquidity pressureon entities like non-banking financial companies, which receiveinvestments from liquid funds.

51

IBPS CLERKS EXAM GENERAL AWARENESS MODELPAPER

1. Who among the following served as the first chairman of thegoverning body of IBPS?1) Dr. Manmohan Singh2) Sir Smith3) P. C. Mahalanobis4) Dr. J.C. Chakraborthy5) Dr. A.K.Qureshi

2. 'Saranda Action Plan', has been recently launched by RuralDevelopment Ministry. It will be implemented firstly in Naxal-hitSaranda district of which among the following states?1) Chhattisgarh2) Jharkhand3) Odisha4) Punjab

52

5) Haryana

3. How many key infrastructure sectors are known as Core sector inIndia Economy used for Index of Industrial Production (IIP) data?1) six2) seven3) eight4) ten5) three

4. The Ennahda Party has emerged as largest political party in thefirst elections after the Arab Spring in which among the followingcountries?1) Tunisia2) Syria3) Libya4) Algeria5) Sudan

5. Indian Ocean Rim Association for Regional Cooperation(IOR-ARC) was initiated by which among the following countries?1) India2) Sri Lanka3) Maldives4) Mauritius5) Nepal

6. Nabam Tuki has been sworn in as Chief Minister of which among

the following states recently?

53

1) Nagaland2) Mizoram3) Arunachal Pradesh4) Meghalaya5) Sikkim

7. Who among the following has recently topped the Fortune India's50 Most Powerful Women in Business list?1) Kiran Mazumdar Shaw2) Chanda Kochar3) Ekta Kapoor4) Shikha Sharma5) Lalitha Dutta

8. Which among the following decides the Saving Banks AccountInterest Rate in India?1) Ministry of Finance2) Reserve Bank of India3) Indian Banks' Association (IBA)4) Banks themselves5) IBPS

9. For which among the following criminal activities related toBusiness, tycoon Raj Rajaratnam was sent to jail recently?1) Terrorist Funding2) Insider Trading3) Tax Evasion4) Hawala Transaction5) Smuggling

54

10. Which of the following banks recently completed its Platinum

Jubilee celebrations?1) Central Bank of India2) Reserve bank of India3) Andhra Bank4) Canara Bank5) IDBI

11. Unique Identification Authority of India (UIDAI), which providesAADHAAR is a part of which among the following?1) National Development Council2) Planning Commission3) Ministry of Home Affairs4) Ministry of Planning and Implementation5) Planning and Statistics

12. Which among the following country is the host to 17th SouthAsian Association for Regional Cooperation (SAARC) summit inNovember 2011?1) Bangladesh2) Maldives3) Nepal4) Pakistan5) India

13. Accounts are allowed to be operated by cheques in respect of________1) Both saving bank accounts and fixed deposit accounts

55

2) Both saving bank accounts and current accounts3) Both saving bank accounts and loan accounts4) Both saving bank accounts and cash accounts

5) Both saving bank account and credit accounts

14. Vasanth Sathe , who recently died is known for spearheadingthe move to bring which among the following to India 1980s?1) Personal Computers2) Color TVs3) Washing Machines4) Motor Cycles5) Telecom revolution

15. Recently which of the following bank celebrated itsCENTENARY Anniversary ?

1) Andhra Bank2) Bank of India3) Central Bank of India4) Vijaya Bank5) Canara Bank

16. The students of which among the following institutions have built the 'Jugnu' satellite which is a remote-sensing satellite that willmonitor vegetation and waterbodies?1) IIT Kanpur2) IIT Kharagpur3) SRM University4) Andhra University5) Delhi University

56

17. Who among the following is the winner of 26th Indira Gandhi Award for National Integration?1) Anil Kakodkar2) Amjad Ali Khan3) Mohan Dharia4) Prof. Jagdish Bhagwati5) Prof.Niharika VidyaSagar

18. On October 25, the Reserve Bank of India (RBI) hadderegulated the savings bank deposit rates and asked banks todetermine their own. Banks are required to offer a uniform rate ondeposits up to which among the following amounts?

1) Rs. 50,0002) Rs. 1,00,0003) Rs. 1,20,0004) Rs. 1,50,0005) Rs.2,00,000

19. What is the requirement of the minimum capital adequacy ratiounder 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 HumanDevelopment Report 2011?

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1) Kerala2) Tamil Nadu3) Himachal Pradesh4) Punjab5) Andhra Pradesh

21. Who among the following is India's Permanent Representativeto the United Nations?1) Arundhati Ghose2) Hardeep Singh Puri3) B N Rau4) Nirupam Sen5) Nidhi Razdan

22. P. C. Haldar was recently making news for being appointed asinterlocutor by the Government to remove bottlenecks on the road

to a dialogue in which among the following issues in India?1) Gorkhaland Talks2) Assam Peace Talks3) Jammu & Kashmir Problem4) Naxalite Problem5) Delhi bomb blasts

23. Before it was transferred to Agriculture Insurance Company ofIndia Ltd, the National Agricultural Insurance Scheme was beingimplemented by which among the following companies?1) General Insurance Corporation of India2) Oriental Insurance Company Ltd. 3) New India Assurance Company Ltd.

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4) National Insurance Company Ltd5) Food Corporation of India

24. As per the latest data, which among the following is the nearestfigure to the average population of India per bank branch?1) 80002) 130003) 180004) 210005) 25000

25. Who among the following is the current Chief of NationalSecurity Guards?1) AK Mitra2) JK Dutt3) NPS Aulakh4) Rajan K Medhekar5) Jagadish Patnaik

26. RBI has decided to release Rs 5 coin to mark the 1000 years ofwhich of the following temple recently ?1) Vaishno Devi temple2) Brihadeswara temple3) Kashi Vishwanath temple4) Sabarimala Temple5) 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 Bank2) World Bank3) UNEP4) IMF5) None

28. The National Green tribunal headquartered at Delhi will havebenches at all the following places except ___1) Bhopal2) Pune3) Kolkatta4) Jaipur5) Chennai

29. India assumed the chairmanship of which of the following

international organisations in September 2011 ?1) G242) BRICS3) G204) G85) IBSA

30. Which of the following is a private sector bank ?1) Corporation Bank2) Indian Bank3) Karur Vysya Bank4) Oriental Bank of Commerce5) None of the above

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31. What is the minimum time of operation an insurance company isrequired to complete for becoming eligible to launch an IPO ( InitialPublic Offer )?1) 2 years2) 5 years3) 7 years4) 8 years5) 10 years

32. SCORES is a complaint redressal system launched by ____

1) CCI2) RBI3) TRAI4) SEBI5) SBI

33. The national broadband plan is aimed at rolling out broadbandinfrastructure to every village with more than____ people ?1) 20002) 30003) 10004) 2005) 500

34. Indian mining companies have bid for stake in Hajigak oremines in Afghanistan, which of the following is the mines famous for ?1) Iron2) Bauxite

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3) copper4) Coal5) Cobalt

35. From which of the following state National Rural LivelihoodMission launched recently?1) Andhra Pradesh2) Punjab3) Haryana4) Karnataka5) Rajasthan

36. 'Aichi Targets' refers to which of the following?1) Trade2) Environment3) S & T4) Commerce5) Education

37. Where in India World Spice Organisation set up recently ?1) Guntur2) Bangalore3) Chennai4) Kochi5) Delhi

38. ASHA is a low priced milk food drink introduced for ruralconsumers by which of the following ?1) Nestle

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2) Amul3) Heinz4) GlaxosmithKline5) None

39. Which of the following is the new income tax return form forsalaried employees introduced by Finance Minister Recently ?1) Suvida2) Sugam3) Sahaj4) Saral5) Samasya

40. Which Bank has announced an end to its TEASER home loanscheme recently?1) SBI2) Andhra Bank3) Vijaya Bank4) ICICI5) HDFC

41. Kimberley process certificated are compulsory for trade in whichof the following ?1) Gold2) Trade3) Diamonds4) Nuclear materials5) Radio active materials

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42. Accredited Social Health Activists (ASHAs ) in which of thestates are known as Mitanins ?1) Punjab 2) Haryana3) Chhattisgarh4) Madhya Pradesh5) Kerala

43. Which of the foreign bank has the highest number of employeesin India ?1) HSBC2) RBS3) Bank of America4) UBS5) 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 monthlyallowance to unemployed under graduates recently ?1) Karnataka2) Rajasthan3) Goa4) Maharashtra5) Punjab

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46. Which of the following has launched the EVERYWHERETELLER MACHINE in India ?1) Andhra Bank2) ICICI Bank3) Axis Bank4) RBS5) SBI

47. French Auction is a term used in which of the following sectorsof financial services ?1) Capital Markets2) Banks3) Insurance4) NBFC5) Micro Credit

48. Which state has the second highest literacy rate as per the

provisional figures of the census 2011 ?1) Gujarat2) Mizoram3) Assam4) Rajasthan5) Punjab

49. China emerged as the world's second largest economy in 2010overtaking which of the following ?1) France2) Germany

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3) Italy4) India5) Japan

50. The new head of IMF is ?

1) Montek Singh Ahluwalia2) Christine Lagarde3) John Paul4) Liu Xiabaou5) 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)316)117)3 18)2 19)4 20)1 21)2 22)2 23)1 24)2 25)4 26)2 27)2 28)4 29)230)4 31)5 32)433)5 34)1 35)5 36)2 37)4 38)4 39)3 40)1 41)3 42)3 43)5 44)1 45)346)3 47)1 48)249)5 50)2

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IBPS CWE GENERAL AWARENESS MODEL PAPER

1. Lucas Papadesmos became the new Prime Minister of which ofthe following countries in November 2011?1) Spain2) Italy3) Greece4) Belgium5) None of these

2. Which Indian city hosted the World Economic Forum's (WEF)Indian Economic Summit in November 2011?1) Mumbai2) New Delhi3) Chennai4) Bangalore5) Hyderabad

3. Moshe Katsav has been sentenced to seven years in prison onthe charges of sexual harassment and obstruction of justice. He

was the 8th President of whi-ch of the following countries?1) Iran2) Israel3) Syria4) Sudan5) Germany

4. Which former Australian cricketer's autobiography is titled 'Fierce

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Focus'?1) Allan Border2) Shane Warne3) Steve Waugh4) Greg Chappell 5) Adam Gilchrist

5. Which of the following teams lifted the Beighton Cup hockeytournament in November 2011?1) IOC2) ONGC3) Air India4) Railways5) None of these

6. Who became the first batsman in Test cricket history to score fourcenturies in successful fourth innings run chases in November 2011?1) Hashim Amla2) Graeme Smith3) Ricky Ponting4) Rahul Dravid5) Sachin Tendulkar

7. Who was reelected as the Presid-ent of Liberia in November2011?1) Joseph Boakai2) Gyude Bryant3) William Tolbert

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4) Ellen Johnson Sirleaf5) None of these

8. Indian Prime Minister Manmohan Singh addressed the People'sMajlis recently. It is the Parliament of which of the following

countries?1) Iraq2) Maldives3) Lebanon4) UAE5) Saudi Arabia

9. Which country lifted the inaugural Sultan of Johor Cup hockeytournament in November 2011?1) Malaysia2) Australia3) India4) South Korea5) None of these

10. Which country test fired Jericho, a ballistic missile, in November

2011?1) Pakistan2) Israel3) Iran4) Iraq5) 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 Gomes2) Eesha Karavade3) Tania Sachdev4) Nisha Mohota5) Padmini Rout

12. Who is the first player to take 500 catches in Test cricket?1) Rahul Dravid2) Adam Gilchrist3) Mark Boucher4) Kumar Sangakkara5) None of these

13. Joe Frazier died of liver cancer. In which of the following sportsdid he excel?1) Golf2) Boxing3) Squash4) Snooker5) Weightlifting

14. Which city hosted the 23rd annual meeting of the Asia PacificEconomic Cooperation (APEC) in November 2011?1) Canberra2) Singapore3) Seoul4) Bangkok5) Honolulu

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15. Which of the following statements about the South AsianAssociation 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 inNovember 2011.5) All the above are correct.

16. ONGC Videsh Ltd (OVL), the overseas arm of Oil and NaturalGas Corporation, has signed an agreement to take a 25 per centstake in Satpayev oil block. In which country is Satpayev blocklocated?1) Russia2) Mongolia3) Ukraine4) Kazakhstan5) Kyrgyzstan

17. Which state became the first in the country to achieve totalfinancial inclusion in September 2011? (Each household in the statehas at least one bank account)1) Tamil Nadu2) Kerala3) Karnataka4) Manipur5) Assam

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18. DVC, NHPC, PGCIL and NTPC are the four public sectorundertakings working in which of the following sectors?1) Coal2) Telecom3) Power4) Textiles5) None of these

19. Who is the author of the book "India and Global Financial Crisis:Managing Money and Finance"?1) P. Chidambaram2) Pranab Mukherjee3) C.Rangarajan4) Y.V.Reddy5) Bimal Jalan

20. What is the full form of NFSM?1) National Food Security Mechanism2) New Food Security Mechanism3) National Food Security Mission4) National Farmers Security Mechanism5) None of these

21. India is not a member of which of the following organizations?1) BRICS2) IBSA3) SAARC4) OPEC

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5) The Commonwealth

22. Which of the following is not a Kharif crop?1) Rice2) Wheat3) Sorghum4) Bajra5) Ragi

23. What per cent of foreign direct investment (FDI) is allowed inapiculture (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 existing20% 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 theworld?1) Brazil2) India

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3) Indonesia4) Pakistan5) Vietnam

26. Which state has the highest number of operational specialeconomic zones in India?1) Tamil Nadu2) Karnataka3) Maharashtra4) Kerala5) Andhra Pradesh

27. Which of the following has become the first public sector company to introduce Employee Stock Option Plan (ESOP) for itsemployees?1) NMDC2) IOC3) NALCO4) NTPC5) ONGC

28. Which of the following groups can be called financially excluded

people?1) Urban slum dwellers2) Marginal farmers3) Landless laborers4) Unorganized sector employees5) All the above

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29. In which year was the Bank of Calcutta established?1) 18022) 18053) 18064) 18095) 1800

30. Which of the following stock exchanges was initially known as"The Native Share & Stock Brokers Association"?

1) Bombay2) Madras3) Jaipur4) Cochin5) Uttar Pradesh

31. Who among the following served as the Finance Minister beforebecoming the President of India?1) N.Sanjeeva Reddy2) Pratibha Patil3) R.Venkatraman4) A.P.J.Abdul Kalam5) S.Radhakrishnan

32. Which bank has recently launched 'Everywhere Teller Machine'service in Vijayawada, Andhra Pradesh? (ETM allows debit cardholders to withdraw upto Rs.1000 in cash per day from a Point ofSale terminal at select merchant outlets.)1) ICICI Bank2) Axis Bank

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3) SBI4) SBH5) HDFC Bank

33. The Hindustan Copper Limited will develop an undergroundcopper-ore mine at Malanjkhand with an investment of Rs.1,856crore. In which state is this mine located?1) Rajasthan2) Madhya Pradesh3) Jharkhand4) Orissa5) Bihar

34. Alok Prasad is the Chief Executive Officer of which of thefollowing industry associations?1) ASSOCHAM2) FICCI3) MFIN4) NASSCOM5) None of these

35. Who is the chairman of the Wor-king Group on BenchmarkPrime Lending Rate (BPLR) appointed by the Reserve Bank ofIndia?1) Deepak Mohanty2) Bimal Jalan3) Usha Thorat4) R.V.Gupta5) 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 aswell as rural areas may start accepting cash (not in an envelope butdirectly), have solar powered back-up, and 24x7 surveillance. Theaforementioned are some of the recommendations of agovernment-appointed committee on ATMs headed by Dr AshokJhunjhunwala, Professor, IIT-Madras. These come at a time whenthe Government has directed the 21 banks in which it owns majoritystake to go in for joint procurement of ATMs.

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Cash acceptor

Besides dispensing notes, which are soiled but can be issued, andretracting notes left behind by customers, the ATMs to be deployedby public sector banks will come equipped with a cash acceptor.The cash acceptor will accept teller grade currency notes ofdenominations 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 customerssuch as small retailers, traders, and vegetable vendors can depositcash after the close of business hours and get immediate credit forthe same in their account.Banks could also add the currency recycle feature so that thefrequency 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'saccount. This is so because the envelope has to be deposited at thedesignated branch, and opened and counted by bank staff in thepresence 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 shouldstore 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 allowfor monitoring from a central location.

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ATMs must be able to handle an average of 300 transactions inurban and semi-urban areas and 200 transactions in rural areas in aday and must work for at least 16 hours a day using solar poweralone.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 functionwithout air-conditioner.Besides cash withdrawal and acceptance, ATMs should, amongothers, enable transactions such as change in personalidentification number (PIN), registration for mobile banking,mini-statement of last 10 transactions, balance enquiry, request forcheque books and funds transfer (intra and inter bank)

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IRDA launched Two Online Initiatives to Safeguard theInterest of Insurance-seekers

The Insurance Regulatory and Development Authority (IRDA)announced two online initiatives to safeguard the interest ofinsurance-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 compareunitlinked 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 oninsurance products from various companies. The information socollated can help insurance-seekers compare premium rates for life,health, travel and motor insurance. Most portals just generate leadsand not all offer the option to purchase a product online.

However, some do facilitate an online buying process to the extentpossible, usually by directing the insurance-seekers to thecompanies’ website. However, aggregators often sell visitors’

personal information to several insurers, resulting in customers

being bombarded with sales calls from the companies or theiragents. IRDA therefore directed the aggregators not to pass visitor’sinformation 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 commentingon insurers or their products.

In addition, aggregators will from here on be required to highlightlinks to the product comparison charts and tables for each categoryof products covered by them. Items to be displayed includepremiums quoted by each insurer as per age and other personaldetails, policy and premium term, sum assured, default underwritingrequirements such as medical examination, diagnostics, etc, andkey features of the product chosen. The diktat also puts the onus ofsafeguarding and securing the entire process on the aggregators.

Launch of the mobile application

The launch of the mobile application, is intended to helpinsurance-seekers compare ULIPs launched after 1 September2010. The tool, which works on Android, iPhone, Nokia andBlackberry platforms, has been termed a mobile application and canbe 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 canbe selected at a time for comparison, with the criteria listed beingbenefits 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 andnon-white governor of which of the following states of the USA?1) Louisiana2) South Carolina3) Texas4) Alaska5) California

2. Identify the mismatched pair1) January 9 -Pravasi Bharatiya Divas (NRI Day)2) January 12-National Youth Day3) January 15 - Army Day4) January 24- National Girl Child Day5) 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 thefollowing countries?1) Pakistan2) Afghanistan3) Maldives4) Bangladesh5) India

4. The Permanent Representative of India to the United Nations isalso presently the chairman of the United Nations Security Council

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Counter-Terrorism Committee. Name him/her?

1) Hardeep Singh Puri2) Meera Shankar3) Nirupama Rao4) Ranjan Mathai5) None of these

5. Who is the first sitting head of state ever indicted by theInternational Criminal Court (ICC) as well as the first to be chargedwith genocide?1) Zubair Mohamed Salih2) Ali Osman Taha3) Omar al-Bashir4) John Garang5) None of these

6. Who among the following is the winner of the Phalke RatnaAward for the year 2011?1) Dev Anand2) Dharmendra3) Shammi Kapoor4) Shashi Kapoor5) Amitabh Bachchan

7. Which of the following pairs is not matched correctly?AUTHOR BOOK1) Tony Blair - A Journey2) George Bush - Decision Points3) 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) Jakarta2) Manila3) Singapore4) Bangkok5) Kuala Lumpur

9. Which of the following organisations was officially commenced on

January 1, 1995 under the Marrakech Agreement?1) UNO2) IMF3) World Bank4) ADB5) WTO

10. Which foreign bank has 4.8% stake in Yes Bank?1) BNP Paribas2) Rabobank3) HSBC4) RBS5) Barclays

11. Identify the mismatched pairCOUNTRY PRESIDENT1) Sri Lanka- Mahinda Rajapakse2) Iran -Mahmoud Ahmadinejad

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3) Chile - Sebastian Pinera4) Philippines - Benigno Aquino5) Zimbabwe- Goodluck Jonathan

12. Which of the following statements about the Youth OlympicGames is not true?1) The Youth Olympic Games (YOG) are held every four years andthese 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 pairORGANIZATION CHIEF1) World Bank -Robert Zoellick2) IMF -Christine Lagarde3) WTO -Pascal Lamy4) ADB - Haruhiko Kuroda5) Amnesty International-Kamalesh Sharma

14. Which of the following books is not written by Chetan Bhagat?1) Five Point Someone2) One Night @ Call Center

3) Three Mistakes of My Life4) Listening to Grasshoppers5) 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 Pathan2) Geet Sethi3) Amitabh Bachchan4) Irfan Pathan5) Rahul Dravid

16. Which city will host the 99th Indian Science Congress inJanuary 2012?1) Chennai2) Bhubaneswar3) New Delhi4) Hyderabad5) Kolkata

17. Who among the following is a Billiards/ Snooker champion?

1) Jyothi Randhawa2) Jeev Milka Singh3) Pankaj Advani4) Arjun Atwal5) Gaganjeet Bhullar

18. Which of the following Prizes is given for mathematicians?1) Templeton Prize2) Nobel Prize3) Kalinga Prize4) Abel Prize5) Pritzker Prize

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19. Which of the following books is not written by Orhan Pamuk, theNobel Prize winner from Turkey?1) My Name is Red2) Snow3) Enigma of Arrival4) The Museum of Innocence5) Istanbul: Memories and the City

20. Anil Agarwal is the chief of which of the following companies?1) Corus2) Caparo3) Arcelor Mittal4) Vedanta Resources5) Ashok Leyland

21. Which company manufactures Blackberry smart phones?1) Nokia2) Samsung3) Onida4) Sony Ericsson5) Research In Motion

22. The headquarters of the North Atlantic Treaty Organization(NATO) is situated in which of the following cities?1) London2) Washington3) Brussels4) Vienna5) 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) UK2) Brazil3) South Africa4) USA5) Qatar

24. Merdeka Cup is associated with which of the following sports?1) Cricket2) Football3) Hockey4) Chess5) Volleyball

25. The recession occurring two times with a short gap in between

is called?1) Double deflation2) Double inflation3) Double Dip recession4) Depression5) None of these

26. Which of the following terms is not used in Cricket?1) Ashes2) Doosra3) Silly Point4) Love

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5) Long On

27. What is the full form of SHGs?1) Self Help Groups2) Small Help Groups3) Small Hope Groups4) Self Hope Groups5) Selfless Help Groups

28. In which year were the SBI Associate Banks nationalized?1) 19552) 19493) 19594) 19695) 1980

29. In which year was the IDBI established?1) 19612) 19603) 19624) 19645) 1965

30. Small Industries Development Bank of India (SIDBI) wasestablished in 1990 with the headquarters in?

1) Lucknow2) New Delhi3) Mumbai4) Nagpur

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5) Kolkata

31. In which year did NHB start its operations?1) 19852) 19883) 19874) 19905) 1992

32. Which city hosted the 12th Inter-national Indian Film Academy(IIFA) Awards ceremony in June 2011?1) Bangkok2) Macau3) Colombo4) Toronto5) None of these

33. Who was selected for the prestigious G.D. Birla Award for

Scientific Research for his contributions in the area of electroniccommunications for the year 2011?1) Mahindra Agrawal2) Subhasis Chaudhuri3) Raghavan Varadarajan4) Santanu Bhattacharya5) None of these

34. The Saraswati Samman, an annual award for outstanding proseor 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. Bhyrappa2) Surjit Paatar3) Naiyer Masud4) Jagannath Prasad Das5) None of these

35. The Vyas Samman, instituted by the K.K. Birla Foundation, isgiven to an outstanding literary work in Hindi authored by an Indiancitizen during the preceding ten years. Who was given this award

for 2010 for his collection of poems 'Phir Bhi Kuch Rah Jayega'?

1) Amar Kanth2) Mannu Bhandari3) Vishwanath Prasad Tiwari4) Kailash Vajpayee5) None of these

36. In which field is the Chameli Devi Jain Award given annually?

1) Social Work2) Journalism3) Classical Dance4) Cinema5) 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' inJune 2011. It is a newspaper published in which of the followingcountries?1) South Africa

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2) Sudan3) Zimbabwe4) Ghana5) Egypt

Answers1) 2 2) 5 3) 3 4) 1 5) 3 6) 27) 5 8) 1 9) 5 10) 2 11) 5 12) 513) 5 14) 4 15) 5 16) 2 17) 3 18) 419) 3 20) 4 21) 5 22) 3 23) 2 24) 225) 3 26) 4 27) 1 28) 3 29) 4 30) 131) 2 32) 4 33) 2 34) 1 35) 3 36) 237) 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 sectorbanks,which control 73% of bank deposits,is currently below that ofthe 15 listed private banks.

On 15 November 2011, the combined market capitalization of the24 public sector banks which include 19 nationalized banks, SBI and its three associates and IDBI was Rs 311877 crore. As againstthis,the market capitalization of 14 private banks was Rs 321613crore. This is a reversal of the position at the beginning of 2011. Ason 1 April 2011, the total mkt-cap of government-owned banks wasRs 439600 crore much higher than the Rs 374218 crore for privatebanks.

As on end-June 2011,PSU banks accounted for 74.6% of bank

deposits while private sector banks had only 18%,with the rest ofthe funds lying with regional rural banks and foreign banks.Inmatters 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 ofloan restructuring and NPA worries in public sector banks hitvaluations 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 byconsolidation 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 theyhave had to restructure large loans. Compared to them the private

banks have been selective in their lending and have had far fewerNPAs.

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Corp Bank scheme for Kerala Govt employees

December 01, 2011Corporation Bank has announced special benefits for thepermanent employees of the State Government.Mr A.M.M.G. Nair, Zonal Manager, Corporation Bank, regionaloffice, Kochi, said Corp Payroll Account is available for routing thesalary of permanent employees through which they can withdraw 50per cent of the amount as overdraft from the second month.Instant ATM-cum-debit card, Internet banking, SMS banking, freeremittance facility, cheque book, multi-city cheques and passbookare also available.Payment of tax, insurance payment and NEFT can be done free ofcharge through Internet and ATM.There is a concession of 1 per cent on interest rates and 50 percent of processing charges on housing loans and 0.25 per centconcession on interest rates for vehicle loans. Gift cards are alsoavailable 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 riskof volatility in currency rates?a.IMFb.Reserve Bank of India

c. SEBId.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 Indiab. Income Tax Department c. Employees’ Provident Fund Organisationd.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 andExchange Board of India (SEBI) that was released on 3 July 2011recommended an increased deposit insurance cover of Rs.5 lakh soas 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 ofnon-dispensation of cash at an ATM within 5 working days.Which of the above is not true?a. Only 1b. Only 2c. 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 50basis points on 26 July 2011. The repo rate currently stands at whatpercentage?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 crorefor the fourth quarter ended 31 March 2011 against Rs 1867 crore

during the corresponding period in 2010?a. Indian Overseas Bankb. State Bank of India

c. Bank of Indiad. 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 CountryPresident, India?a. T. V. Seshadri b. Vicky Bindrac. Tunde Lemo

d. Ajay BangaAns: a

7. Government of India on 19 July 2011 appointed UshaAnanthasubramanian, former general manager of Bank of Baroda(BoB) as executive director of which public sector lender?a. Central Bank of Indiab. Punjab National Bankc. 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 Bankc. 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 willdistribute home loans to Yes Bank's customers?a. Canara Bank

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b. ABN Amro bankc. 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. Ltdb. Life Insurance Corporation of Indiac. IDBI Fortis Life Insurance Company Ltd. d. SBI Life Insurance Co. LtdAns: b

11. Which of the following public sector banks in November 2011froze its lending to the power sector?a. State Bank of India

b. Allahabad Bank

c. Punjab National Bankd. United Bank of India

Ans: b

12. Which Indian bank on 10 May 2011 raised benchmark primelending 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 Bankc. Punjab National Bankd. Bank of BarodaAns: 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 itsguidelines on derivatives. Which is the only public sector bank on

the list of banks to be fined?a. State bank of Indiab. Punjab National Bankc. Bank of Indiad. Indian BankAns: a

14. The Reserve Bank of India on 25 August 2011 released itsAnnual Report for 2010-11. Which of the following was notdiscussed 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 financialaccountsd. role of regulatory bodies in controlling the financial markets

Ans: d

15. Reserve Bank of India (RBI) panel headed by headed by UshaThorat, Director, Centre for Advanced Financial Research andLearning (CAFRAL) on 29 August 2011 came up with suggestion onnon-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 minimumasset size of more than Rs.25 crore for registering any newnon-banking finance company (NBFC)

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2. Transfer of shareholding, direct or indirect, of 25 per cent andabove, change in control, merger or acquisition of any registeredNBFC 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 threeyears for all registered deposit-taking and non-deposit-takingNBFCs.4. NBFCs would be subject to regulations similar to banks whilelending to stock brokers and merchant banks and similar to stockbrokers, as specified by the Securities and Exchange Board of India(SEBI)a. 1 & 4

b. 2 & 4

c. Only 4d. Only 1Ans: d

16. Which Indian PSU bank in tune with its plans to expand its retaildivision in the UK entered the mortgage market in the country forthe first time?a. Punjab National Bankb. Oriental Bank of Commercec. State bank of Indiad. Indian Overseas BankAns: c

17. Which of the following banks set up two loan processing centresfor the small and medium enterprise (SME) segment on a pilot basisin Bangalore & in New Delhi in September 2011?

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a. Corp Bankb. United Bank of India

c. Syndicate Bank

d. Bank of BarodaAns: c

18. The government suspended M Ramadoss for alleged violations

in issuing insurance cover to an airline during his stint as head ofanother state-run insurer. To which insurance group did he belongto?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 atie-up with non-banking finance companies such as Future Capital,Bajaj Finance, and Reliance Capital to grow its retail portfolio?

a. Central Bank of Indiab. State Bank of India

c. Bank of Indiad. HDFC Bank

Ans: a

20. Which are the two Gujarat-based cooperative sector lenders onwhich Reserve bank of India imposed a financial penalty of Rs 1lakh each for violation of various rules, including anti-moneylaundering guidelines?

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1. Shree MahalaxmiMercantile Co-operative Bank2. Rander People's Co-operative Bank

3. Abad District Co Op Bank

4. Ahd Mercantile Co-Op Bank Ltda. 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 RBIprescribed rate in lending funds borrowed from banksIII) The interest margin earned by NBFCs in lending funds borrowedfrom banks cannot exceed the ceiling prescribed by the RBI1) I only2) I and II only3) II only4) I and III only5) None of these

2.Which of the following has proposed the setting up of a NationalKnowledge Functional Hub (NKFH) to facilitate interaction betweenthe industry and institutions of higher education to produce betterquality manpower recently ?1) National Knowledge Commission

2) CII3) ASSOCHAM4) FICCI5) None of these

3.The Reserve bank of India has increased the amount of moneythat can be loaded on mobile phones (mobile - wallet) to ..... from

the existing limit of Rs. 5,000 recently

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1) Rs. 10,0002) Rs. 15,0003) Rs. 25,0004) Rs. 50,0005) None of these

4.What are 'structural adjustment programmes'?1) Programmes to increase the spread of financial services indeveloping countries2) Programmes to improve road safety in developing countries3) Requirements to qualify for World Bank and IMF loans

4) UN building regulations for disaster preparedness5) None of these

5.Nuclear plants in India have an 'Exclusion Zone' of .... surroundingthe power station, in which no habitation is permitted.1) 1.6 km2) 4.2 km3) 8.4 km4) 11.6 km5) None of these

6.Improving regulation of which of the following was the subject ofthe Finance Ministry appointed KP Krishnan Committee ?1) Microfinance institutions2) Mutual funds3) General insurance companies4) Credit rating agencies5) None of these

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7. 'Asha' is a low - priced milk food drink introduced for ruralconsumers by which of the following ?1) Nestle2) Cadbury3) Heinz4) GlaxoSmithKline5) 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 ofthe following statements is / are correct ?I) Satpayev s in TurkmenistanII) Satpayev is in Black SeaIII) Satpayev is believed to hold 1.75 billion barrels of oil reserves

1) I only2) I and II only3) II only4) III only5) None of these

9.Which of the following is the new income tax return form forsalaried employees introduced by the Finance Ministry recently ?1) Suvidha2) Sugam3) Sahaj4) Saral5) 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 India2) Facilitate project exports of Indian companies3) Facilitate acquisitions by Indian companies overseas4) Facilitate employment of Indian professionals abroad

5) None of these

11.Which of the following banks has launched 'Tiny Cards' withbiometric identification to expand the coverage of banking servicesin rural parts of the country ?1) ICICI Bank2) NABARD3) State Bank of India4) Bank of India5) None of these

12.Which of the following statements about IRDA guidelines fordistance marketing of products issued recently is / are correct ?I) Telemarketing of all Unit - Linked Insurance Products (ULIPs) hasbeen disallowedII) Only telemarketers trained by institutes accredited by IRDA canbe employedIII) All telemarketing calls will have to be recorded1) I only2) I and II only3) I and III only4) II and III only5) None of these

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13.The Bureau of Energy Efficiency labelling is compulsory for all ofthe following except :1) Laptops2) Frost-free refrigerators3) Tubular fluorescent lamps4) Ceiling fans5) None of these

14.What is the investment limit in plant and machinery forclassification under Small Scale Industries ?1) Rs. 10 lakh2) Rs. 50 lakh3) Rs. 1 crore4) Rs. 10 crore5) None of these

15.The government has recently decided to allow FIIs investment ininfrastructure bonds upto ..... annually.1) $5 billion2) $ 10 billion3) $ 15 billion4) $ 25 billion5) None of these

16.The term ASBA (Applications Supported by Blocked Amount) is

used in which of the following financial services ?1) General Insurance2) Capital markets

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3) Life Insuracne4) Micro finance5) None of these

17.The Government has decided to notify a provision exemptingpeople of salary income up to ..... a year from filing returns1) Rs. 2 lakh2) Rs. 2.5 lakh3) Rs. 4 lakh4) Rs. 5 lakh5) 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 onMarch 31, 2011 ?1) UTI MF2) HDFC MF3) Reliance MF4) birla Sun Life5) None of these

19.Which of the following identifies and funds social welfare projectsunder its India Development Marketplace initiative ?

1) IMF2) USAID3) Intel4) World Bank5) None of these

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20.Which of the following has been set up by the government tofund energy saving technologies recently ?1) National Renewable Energy Fund2) National Green Energy Fund3) National Carbon Reduction Fund4) National Clean Energy Fund5) None of these

21.Which of the following is the new income tax return form forsmall businessmen and self-employed professionals introduced by

the Finance Ministry recently ?1) Suvidha2) Sugam3) Sahaj4) Saral5) None of these

22.A Committee was constituted to review the functioning fo theCentral Economic Intelligence Bureau (CEIB) recently. What is theobjective of CEIB ?1) TO gie suggestions for promoting financial inclusion2) TO compile data for calculating GDP growth and per capitaincome3) To gather data on tax evasion and other financial crimes4) To assist the RBI in formulating monetary policy5) None of these

23.Mission Document of the National Water Mission (NWM) wasapproved 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 forClimate ChangeII) Improving share of hydroelectricity in country's total energyproduction is one of the objective of NWM

III) NWM will adjudicate in water sharing disputes involvinginter-state rivers1) I only2) I and II only3) I and II only4) II and III only5) None of these

24.Which country's 'Zero Kero' LPG programme is being considredfor use in India to encourage customers to switch from kerosene toLPG recently ?1) Thailand2) Sri Lanka3) Malaysia4) Indonesia5) None of these

25.Which of the folowing was launched by Union Ministry for YouthAffairs and SPorts in association with National Skill DevelopmentCorporation (NSDC) at Imphal, Manipur recently?1) Sports Employability SKill Project2) Youth Skill Development Project3) Youth Employability Skill Project4) Tribal Employability Skill Project

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5) None of these

26. Government has decided to introduce biometric ...... to weed outduplicate and fake ones recently1) Debit cards2) Passports3) Driving licenses4) PAN cards5) 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 thelast ten years, according to the Reserve bank of India ?

1) USA2) UK3) Singapore4) Mauritius5) None of these

28.The government plans to set up a Green National Accounting(GNA) system to evaluate impact of economic growth onenvironment. Who has been selected as the Chairperson of the

expert group on GNA ?1) Parthasarathi Shome2) Madhav Gadgil3) Partha Dasgupta4) B. Ulhas Karanth5) 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 RuralEmployment Guarantee Act (NREGA) recently ?1) European Union2) ILO3) IMF4) UN5) 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 thedomestic market will not come under the ambit of CCIII) M & A deals that were initiated before June 1, 2011 will not come

under the ambit of CCIIII) Scrutiny of all M & A deals will be completed by the CCI within180 calendar days1) I only2) I and II only3) II and III only4) I, II and III5) None of these

31.Which of then following statements about foreign investment inLimited Liability Partnership (LLP) companies is / are correct ?

I) FDI will be allowed in LLPs in sectors like mining, power, roadsand highways, manufacturing activities, drugs and pharmaceuticalsII) FDI will not be allowed in LLPs engaged in agricultural and

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plantation activities, print media or real estate businessIII) LLPs have been allowed to access external commercialborrowings1) I only2) I and II only3) II and III only4) III and I only5) None of these

32.Which is the first state to introduce e-payment system for

commercial tax payers recently ?1) Maharashtra2) Uttarakhand3) Karnataka4) Madhya Pradesh5) None of these

33.Which of the following is not among the industries / sectors givenpriority in natural gas supply in the country ?1) Fertiliser2) LPG3) Steel4) Power5) None of these

34.Where was the World Spice Organisation (WSO) set up recently?1) Kannur2) Kochi

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3) Kollam4) Kottayam5) None of these

35.Which of the following submitted a report titled 'Social Protectionfor a Changing India' - a comprehensive review of anti-povertyschemes such as PDS, MGNREGS, RSBY and IAY recently ?1) World Economic Forum2) CMIE3) World Bank4) IMF5) None of these

36.Which of the following not one of the objectives of setting up theWarehousing Development and Regulatory Authority ?1) To improve farm sector yiled

2) To enable farmers to avail of loans against foodgrains stored3) To reduce post-harvest losses in foodgrain storage4) To prevent post-harvest distress sales by farmers5) None of these

37.The government approved the revival of Scooters India Limited(SIL) through induction of a joint venture partner recently. SIL sellsscooters under which trademark ?1) Mayur2) Bharat3) Vijay4) Vikram5) 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 AggregationCentre (CCA) in which state ?1) Himachal Pradesh2) Uttarakhand3) Rajasthan4) Chhattisgarh5) None of these

39.Which sectors were added to the list of six 'core sectorinfrastructure industries' recently?I) Water supplyII) Natural gasIII) Fertilisers1) I only2) I and II only3) II only4) III and II only5) None of these

40.Bina Refinery is a joint venture of Bharat Petroleum and ........ OilCompany to set up a 6 MMTPA grass root refinery at Bina inMadhya Pradesh.1) Shell2) Qatar3) Emirates4) Oman5) None of these

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41.A high level committee of Bankers submitted its report on RuralHousing recently. Which of the following statements regarding itsrecommendations for Below the Poverty Line (BPL) Households is /are correct ?I) Allocation of grants for construction of rural housing units for BPLHouseholds should be increased to Rs. 75,000 per dwelling unitII) Repayment period should be reduced to ten yearsIII) BPL households should be provided a loand of Rs. 50,000 at 4%rate of interest1) II only2) I and II only3) II only4) III and I only5) None of these

42.'Aichi Targets' refers to which of the following?1) Trade2) Education3) Nuclear safety4) Environment5) None of these

43.Scheduled commercial banks do not require permission from theReserve bank of India for opening new branches in towns withpopulation less than .........1) 49,9992) 99,9993) 2,49,999

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4) 4,99,9995) None of these

44.The National Rural Livelihoods Mission (NRLM) was launchedrecently. Which of the following statements is / are correct ?

I) NRLM seeks to bring the rural poor under the Self Help Group(SHG) networkII) Services of Business Correspondents (BCs) will be utilised to

spread the concept of NRLMIII) NLRM will facilitate access of bank credit to those covered under

the Mission1) I only2) I and II only3) II and III only4) I and III only5) None of these

45.A committee headed by RBI deputy governor ShyamalaGopinath has recommended a 'holding company' structure for bothbanking and nonbanking financial groups recently. Which of thefollowing statements is / are correct ?I) Both the holding company as well as the subsidiaries can belisted on stock exchangeII) The subsidiaries will own equity stake in the holding company1) II only2) I and II only3) I only4) All of these5) None of these

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46.Which Indian corporate group has decided to enter the financialservices business in a tie up with D.E. Shaw of the US ?

1) AV Birla Group2) Wipro Ltd3) Mahindra & Mahindra4) RIL5) None of these

47.The Reserve Bank of India (RBI) recently relaxed the eligibilitynorms 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 acompany2) A form of credit rating that compares companies on their cash

flow3) A form of insurance that protects the lender in case of loanddefault4) 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 IndianDepository Receipts (IDRs) ?1) They are issued by Indian companies to raise funds fromoverseas stock markets2) They are issued by foreign companies to raise funds from Indianstock markets3) They are denominated in foreign currency4) 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 withthe World Bank for securing carbon credits for its 'CleanDevelopment Mechanism' (CDM) recently ?1) Sikkim2) Uttarakhand3) Jammu Kashmir4) Himachal Pradesh5) None of these

50. From which state was the National Rural Livelihood Mission

launched recently ?1) Kerala2) Maharashtra3) Haryana4) Rajasthan5) None of these

ANSWERS:1) 1 2) 4 3) 4 4) 3 5) 1 6) 4 7) 4 8) 4 9) 3 10)211) 3 12) 4 13) 1 14) 3 15) 4 16) 2 17) 4 18) 3 19)4 20) 421) 2 22) 3 23) 1 24) 4 25) 3 26) 4 27) 4 28) 3 29)4 30) 431) 2 32) 3 33) 3 34) 2 35) 3 36) 1 37) 4 38) 3 39) 440) 441) 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 tolaunch core banking solution (CBS). Under the pan India projectNABARD 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 CooperativeCredit Structure (STCCS) to join the project by executing aMemorandum of Understanding (MoU) with NABARD.

The project is aimed at providing application software, maintenanceof data centre, disaster recovery centre, related network connectionand regular maintenance and support of hardware and software. The agreement reached under the project is likely to go a long wayto bring the functioning of Cooperative Banks at par withCommercial 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 11April 2011 in Chennai. The e-banking lounge was inaugurated by CRangarajan, Chairman, Prime Minister's Economic AdvisoryCouncil. The new service will provide the customers of Indian Bankwith the facility of cash deposit, cash withdrawal, cheque depositwith acknowledgement, internet banking, touch screen banking for

all account related transactions.

Dr. Rangarajan also launched two new tech products namelymaestro enabled debit card for senior citizens and inter-bank mobilepayment 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, easyto use new tech products for the benefit of all types of customers

and the general public. The bank also plans to introduce e-bankinglounges in various metros.

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K. S. Sreenivasan appointed non-official director on board

of Oriental Bank of Commerce

November 23, 2011The Ministry of Finance (Department of Financial Services) on 27september 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 2006and 2009 and also on the board of Madras School of Economics.Sreenivasan, a practising chartered accountant with nearly 26 yearsof 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 achieveCompliance with Capital Adequacy Ratio Norms

November 23, 2011Union Finance Minister Pranab Mukherjee on 16 October 2011voiced the Finance Ministry’s decision to to recapitalise State Bankof India (SBI). Funds would be provided to the PSU lender toenable it to achieve compliance with capital adequacy ratio (CAR)

norms. Fresh capital is to be infused in SBI. The government willinject Rs 3,000-4000 crore into SBI during the current fiscal 2011-12to help it achieve an 8 per cent capital adequacy ratio (CAR).

Recapitalisation of banks is a continuing process and thegovernment will continue to provide funds to PSU lenders throughthe Budget to ensure that they can meet solvency requirements.

According to estimates, SBI needs about Rs 20000 crore of freshcapital to maintain the pace of growth without sacrificing solvencymargin norms.

Moody's had recently downgraded the credit rating of SBI, citinginadequate capital and poor asset quality as reasons. Following thedowngrade, major private sector lenders like ICICI Bank, HDFCBank and Axis Bank currently have a better standing than SBI interms of their credit rating. The government holds a 59 per centstake in the country's largest bank, SBI.

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

November 23, 2011Global ratings firm Moody's on 9 November 2011 downgraded the

entire Indian banking system's rating outlook from stable to negativeindicating a deterioration in asset quality in the months ahead. InSeptember 2011, Standard & Poor's (S&P) downgraded thecountry's largest lender, the State Bank of India, by one notch.

Arguing its case for the outlook downgrade the Moody's mentionedthat with asset quality was anticipated to deteriorate over the next12-18 months, thereby causing an increase in provisioning needsfor 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 lendinginstitutions are much healthier than their global counterparts. Indianbankers termed the move unwarranted and premature at this pointof time.

The market apprehended that the downgrade by the Moody's would

render overseas borrowings costlier for Indian banks. The negativesentiment sparked a major sell-off in banking stocks, resulting in the

banking index on the Bombay Stock Exchange tumbling by 2.62 percent on 9 November.

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IBPS CWE GENERAL AWARENESS MODEL SOLVEDPAPER

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 privateones, in which sector ?1) Fertiliser2) Food processing3) Telecom4) Petroleum5) None of these

2.What is the meant by recent news reports saying – "Indian Rupeeis appreciating"?I) THe purchasing power of the Rupee in India has declinedII) The exchange rate of Rupee in India has gone up

III) The purchasing power of the Rupee in India has gone up

1) I only2) II only3) II or III only4) III only5) None of these

3.Which state was in news for passing a Bill for regulating MicroFinance Institutions recently?1) Tamil Nadu2) Bihar

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3) Karnataka4) Andhra Pradesh5) 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 Pradesh2) Karnataka3) Kerala4) Tamil Nadu5) 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 deposits2) It has allowed premature withdrawals3) It has increased govt. subsidy for NPS deposit holders

4) It has increased distributors' commission5) None of these

6.The All India Federation of Horoogical Industries represents theinterests of which of the following sectors ?1) Horticulture2) Gems & Jewellery3) Watch4) Pharmaceuticals

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5) None of these

7.The Ministry of New and Renewable Energy has decided to ti-upwith which country to tap the latter's expertise in exploitinggeo-thermal energy resources recently ?1) South Africa2) Iran3) Iceland4) Bolivia5) None of these

8.Which public sector bank copelted the acquisition JSC Dana Bankof Kazakhstan recently?1) Dena Bank2) Canara Bank3) PNB4) Bank of India5) None of these

9. GRIHA rating system is used for which of the following ?1) Cement2) NBFCs3) Buildings4) Gold5) None of these

10.The Genetic Engineering Appraisal Committee (GAC) recently

gave its approval for field trials of a genetically modified variety ofwhich of the following cash crops ?

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1) Coconut2) Pepper3) Cardamom4) Rubber5) None of these

11.Which of the following statements is/are correct about thedistribution of Central financial assistance to states ?

I) Central financial assistance for states is calculated according tothe Gadgil FormulaII) The highest weightage is given to the per capita income of thestateIII) The lowest weightage is given to the population of the state1) I only2) I and II only3) II only4) I and III only5) None of these

12.Which of the following public sector companies sells gold coinsand silver ornaments under the trademark 'Sanchi'?1) Rare Earths Ltd2) 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 thehighest share in India's annual power generation capacity ?

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1) Hydro2) Coal3) Gas4) Nuclear5) None of these

14.What is the share of private expenditure on health in the totalhealth expenditure in India according to the World Health Report ofthe 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) Shipping2) Metals trading3) Space4) Nuclear energy5) None of these

16.Which of the following statements about the Indian Economy in2050 as per a recent report by Pricewaterhouse Coopers (Pwc) is /are correct ?I) India's GDP in Market Exchange Rate (MER) terms will be thefourth highest in the world in 2050II) 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

20501) I only2) I and II only3) II only4) II and III only5) None of these

17.Which of the following are not listed on stock exchanges in India?1) Fertiliser companies2) NBFCs3) Insurance companies4) Airlines5) 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 automaticroute.

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II) Up to 33 per cent FDI is permitted in single brand retailIII) 100 per cent FDI is permitted in wholesale cash and carry

1) I only2) I and II only3) II only4) III and I only5) 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 - BritainII) ING Group - NetherlandsIII) Standard Bank - South Africa1) I only2) I and II only3) II and III only4) I, II and III5) None of these

21.Which of the following statements about exicise duty on cottonand man - made (synthetic) fibres is / are correct ?I) Man - made (synthetic) fibres attract a higher excise duty thancotton fibresII) Man-made (synthetic) fibres attract lower excise duty than cottonfibresIII) No excise duty is levied on cotton fibres

1) I only2) II only3) I and III only

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4) III only5) None of these

22.The Bombay Stock Exchange launched the BSE TASIS Shariah

50 - a stock index that is compliant with Shariah - recently. TheIndex cannot invest in shares of companies in which of the followingsectors ?I) BankingII) Cement & SteelIII) Alcohol & tobacco products1) I only2) I and II only3) III only4) I and III only5) None of these

23.Which of the following has launched the 'Bank on Bike' initiativeto cover villages untouched by banking facilities so far recently ?1) Bank of India2) Bank of Baroda3) Central Bank of India4) SBI5) None of these

24.Which of the following has decided to enter the nuclear powersector following an agreement with the Nuclear Power Corporation

recently ?1) Tata Power2) NHPC

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3) Indian Oil4) ONGC5) 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 DelhiII) Allahabad bank – KolkataIII) Bank of India - Mumbai1) I only2) I and II only3) II and III only4) I, II and III5) None of these

26.The tax on short - term capital inflows is named after whichNobel Laureate in economics ?1) Gary Becker2) james M. Buchanan3) James Tobin4) Myron Scholes5) 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 domesticmarkes2) Indian companies re-exporting imported products without any

136

value addtion3) Brining back illicit money hiddern aborad by Indians under a

different name4) Imposing high customs duty to discourage dumping of goods inIndian market5) None of these

28.Infant Mortality Rate (IMR) data for high focus states (stateswhere IMR is above national average) is collected once every fiveyears. The Union Health Ministry has now decided to collect such

data .......1) half yearly2) annually3) once every two years4) once every three years5) None of these

29.Which country's gold output of 340.88 tonnes was the highest inthe world in 2010 ?1) Canada2) South Africa3) China4) USA5) 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

137

3) Essar Oil4) ONGC5) None of these

31.'Anushakti Vidhyut Nigam Ltd' was incorporated as a jointventure between Nuclear Power Corporation of India Ltd and whichof the following recently ?1) NMDC2) NHPC3) BEL4) NTPC5) None of these

32.Which of the following was founded in 1956 by the Governmentof India with funding from the Ford Foundation ?1) National Institute of Public FInance and Policy2) National Institute of Bank Management3) 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) France2) Britain3) Germany4) Japan5) None of these

138

34.CARINGS has been launched by Ministry of Womena nd ChildDevelopment to :1) improve gender parity2) reduce infant mortality3) improve child immunisation4) facilitate adoption5) None of these

35.The Union Cabinet has approved amendments in the Coinage

Bill 2009 that seeks to amalgamate four existing Acts relating tocoinage recently. Which of the following Acts is the oldest ?1) The Indian Coinage Act2) The Small Coins (Offences) Act 3) The Metal Token Act4) The Bronze Coin (Legal Tender) Act5) None of these

36.Which of the following is not a hedge fund ?1) Magellan2) Hibhbridge3) Gartner4) D.E. Shaw5) None of these

37.Preferred Provder Network (PPN) is a term used n which of thefollowing businesses ?1) Commodities trading

2) Retailing3) Health insurance

139

4) Foreign trade5) None of these

38.Which of the following has introduced a new tool named Data

Ware Housing and Business Intelligence System (DWBIS) forspeedy analysis of data and identification of violations?1) IRDA2) SEBI3) RBI4) TRAI5) None of these

39.The government has introduced three new consumer price

indices – CPI (Rural), CPI (Urban) & CPI (Combined) – with 2010as the base year recently. Which of the following is not among the

five major commodity groups covered in the indics ?1) Food, beverages and tobacco2) Fuel and light3) Education and schooling4) Housing5) None of these

40.Which of the following has launched the 'Everywhere TellerMachine' (ETM) in India ?1) Stanchart Bank2) HDFC Bank3) SBI4) Axis Bank5) None of these

140

41.Regional Rural Banks (RRBs) are owned b :I) Their Sponsor BankII) Government of the state where they are locatedIII) Union government1) I only2) I and II only3) II and III only4) I, II and III5) None of these

42.'Easy Exit Scheme 2011' floated by the Ministry of CorporateAffairs refers to which of the following ?1) Privatisation of loss-making public sector companies

2) Removal of names of defunct companies from the Registrar ofCompanies3) Closure of loss-making industries after paying off creditors4) Removal of SEZ status for companies not fulfilling exportobligations5) None of these

43.What is the financial inclusion campaign lacunched by thegovernment to bring banking services to vast unbanked rural areasin the country recently named ?1) Swawlamban2) Swatantra3) Swadhar4) Swabhiman5) None of these

141

44.Whch of the following statements about India's population andsurface area is are correct as per the provisional figures of Census

2011 ?I) India accounts for 2.4 percent of the world surface areaII) India sustains 17.5 percent of the world populationIII) Population density has increased between 2001 and 20111) I only2) I and II only3) III and I only4) I, II and III5) None of these

45.According to the RBI, branches serving population of ........ and

above are classified as Metropolitan branches

1) 5 lakh2) 10 lakh3) 25 lakh4) 50 lakh5) None of these

46.Which state government has announced introduction of 'VanitaFamily Card' for below poverty line families that will enable themtravel in road transport corporation buses at concessional fares

recently ?1) Karnataka2) Tamil Nadu3) Maharashtra4) Andhra Pradesh

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5) None of these

47.'French Auction' is a term used in which of the following sectorsof financial services ?1) Banking2) Insurance3) Capital markets4) Micro-finance5) None of these

48.The department of industrial policy and promotion (DPP) is

promoting NMIZs to improve the spread of industrilisation in thecountry. NMIZ refers to which of the following ?1) New Manufacturing and Investment Zones2) National Medium Industry Zones3) National Manufacturing Industry Zones4) National Manufacturing and Investment Zones

5) None of these

49.Which state / union territory has the lowest literacy rate as perprovisional figures of Census 2011 ?1) Orissa2) Mizoram3) Bihar4) Rajasthan5) None of these

50.The Department of Industrial Poliyc and Promotion announcedchanges in FDi policy recently. Which of the following statements is

143

/ are correct ?I) Indian companies have been allowe to convert foreign debt intoequityII) Indian companies have been allowed to issue equity to fundimports of machinery and capital goodsIII) 51 per cent FDI is currently allowed in multi-branch retail trade1) I only2) I and II only3) II and III only4) III and I only5) None of these

ANSWERS:1) 4 2) 2 3) 4 4) 2 5) 4 6) 3 7) 3 8) 3 9) 3 10)411) 1 12) 4 13) 2 14) 4 15) 4 16) 4 17) 3 18) 3 19)4 20) 321) 3 22) 4 23) 4 24) 3 25) 4 26) 3 27) 3 28) 2 29)3 30) 431) 4 32) 4 33) 4 34) 4 35) 3 36) 3 37) 3 38) 2 39)3 40) 441) 4 42) 2 43) 4 44) 4 45) 2 46) 4 47) 3 48) 4 49)3 50) 2

144

IBPS CWE GENERAL AWARENESS MODEL SOLVEDPAPER

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 privateones, in which sector ?1) Fertiliser2) Food processing3) Telecom4) Petroleum5) None of these

2.What is the meant by recent news reports saying – "Indian Rupeeis appreciating"?I) THe purchasing power of the Rupee in India has declinedII) The exchange rate of Rupee in India has gone up

III) The purchasing power of the Rupee in India has gone up

1) I only2) II only3) II or III only4) III only5) None of these

3.Which state was in news for passing a Bill for regulating MicroFinance Institutions recently?1) Tamil Nadu2) Bihar

145

3) Karnataka4) Andhra Pradesh5) 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 Pradesh2) Karnataka3) Kerala4) Tamil Nadu5) 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 deposits2) It has allowed premature withdrawals3) It has increased govt. subsidy for NPS deposit holders

4) It has increased distributors' commission5) None of these

6.The All India Federation of Horoogical Industries represents theinterests of which of the following sectors ?1) Horticulture2) Gems & Jewellery3) Watch4) Pharmaceuticals

146

5) None of these

7.The Ministry of New and Renewable Energy has decided to ti-upwith which country to tap the latter's expertise in exploitinggeo-thermal energy resources recently ?1) South Africa2) Iran3) Iceland4) Bolivia5) None of these

8.Which public sector bank copelted the acquisition JSC Dana Bankof Kazakhstan recently?1) Dena Bank2) Canara Bank3) PNB4) Bank of India5) None of these

9.GRIHA rating system is used for which of the following ?1) Cement2) NBFCs3) Buildings4) Gold5) None of these

10.The Genetic Engineering Appraisal Committee (GAC) recently

gave its approval for field trials of a genetically modified variety ofwhich of the following cash crops ?

147

1) Coconut2) Pepper3) Cardamom4) Rubber5) None of these

11.Which of the following statements is/are correct about thedistribution of Central financial assistance to states ?

I) Central financial assistance for states is calculated according tothe Gadgil FormulaII) The highest weightage is given to the per capita income of thestateIII) The lowest weightage is given to the population of the state1) I only2) I and II only3) II only4) I and III only5) None of these

12.Which of the following public sector companies sells gold coinsand silver ornaments under the trademark 'Sanchi'?1) Rare Earths Ltd2) 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 thehighest share in India's annual power generation capacity ?

148

1) Hydro2) Coal3) Gas4) Nuclear5) None of these

14.What is the share of private expenditure on health in the totalhealth expenditure in India according to the World Health Report ofthe 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) Shipping2) Metals trading3) Space4) Nuclear energy5) None of these

16.Which of the following statements about the Indian Economy in2050 as per a recent report by Pricewaterhouse Coopers (Pwc) is /are correct ?I) India's GDP in Market Exchange Rate (MER) terms will be thefourth highest in the world in 2050II) India's GDP in Purchasing Power Parity (PPP) terms is the

second highest in the world in 2050

149

III) Only China will be ahead of India in both MER and PPP terms in

20501) I only2) I and II only3) II only4) II and III only5) None of these

17.Which of the following are not listed on stock exchanges in India?1) Fertiliser companies2) NBFCs3) Insurance companies4) Airlines5) 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 automaticroute.

150

II) Up to 33 per cent FDI is permitted in single brand retailIII) 100 per cent FDI is permitted in wholesale cash and carry

1) I only2) I and II only3) II only4) III and I only5) 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 - BritainII) ING Group - NetherlandsIII) Standard Bank - South Africa1) I only2) I and II only3) II and III only4) I, II and III5) None of these

21.Which of the following statements about exicise duty on cottonand man - made (synthetic) fibres is / are correct ?I) Man - made (synthetic) fibres attract a higher excise duty thancotton fibresII) Man-made (synthetic) fibres attract lower excise duty than cottonfibresIII) No excise duty is levied on cotton fibres

1) I only2) II only3) I and III only

151

4) III only5) None of these

22.The Bombay Stock Exchange launched the BSE TASIS Shariah

50 - a stock index that is compliant with Shariah - recently. TheIndex cannot invest in shares of companies in which of the followingsectors ?I) BankingII) Cement & SteelIII) Alcohol & tobacco products1) I only2) I and II only3) III only4) I and III only5) None of these

23.Which of the following has launched the 'Bank on Bike' initiativeto cover villages untouched by banking facilities so far recently ?1) Bank of India2) Bank of Baroda3) Central Bank of India4) SBI5) None of these

24.Which of the following has decided to enter the nuclear powersector following an agreement with the Nuclear Power Corporation

recently ?1) Tata Power2) NHPC

152

3) Indian Oil4) ONGC5) None of these

25. Which of the following pairs of India's public sector banks andtheir headquarters are correctly matched ?I) Punjab National Bank - New DelhiII) Allahabad bank – KolkataIII) Bank of India - Mumbai1) I only2) I and II only3) II and III only4) I, II and III5) None of these

26.The tax on short - term capital inflows is named after whichNobel Laureate in economics ?1) Gary Becker2) james M. Buchanan3) James Tobin4) Myron Scholes5) None of these

27.The term 'round - tripping' often appears in financial news thesedays. What does it mena?1) Importing products that are not easily available in the domesticmarkes2) Indian companies re-exporting imported products without anyvalue addtion

153

3) Brining back illicit money hiddern aborad by Indians under a

different name4) Imposing high customs duty to discourage dumping of goods inIndian market5) None of these

28.Infant Mortality Rate (IMR) data for high focus states (stateswhere IMR is above national average) is collected once every fiveyears. The Union Health Ministry has now decided to collect such

data .......1) half yearly2) annually3) once every two years4) once every three years5) None of these

29.Which country's gold output of 340.88 tonnes was the highest inthe world in 2010 ?1) Canada2) South Africa3) China4) USA5) 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 India3) Essar Oil

154

4) ONGC5) None of these

31.'Anushakti Vidhyut Nigam Ltd' was incorporated as a jointventure between Nuclear Power Corporation of India Ltd and whichof the following recently ?1) NMDC2) NHPC3) BEL4) NTPC5) None of these

32.Which of the following was founded in 1956 by the Governmentof India with funding from the Ford Foundation ?1) National Institute of Public FInance and Policy2) National Institute of Bank Management3) 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) France2) Britain3) Germany4) Japan5) None of these

34.CARINGS has been launched by Ministry of Womena nd Child

155

Development to :1) improve gender parity2) reduce infant mortality3) improve child immunisation4) facilitate adoption5) None of these

35.The Union Cabinet has approved amendments in the Coinage

Bill 2009 that seeks to amalgamate four existing Acts relating tocoinage recently. Which of the following Acts is the oldest ?1) The Indian Coinage Act2) The Small Coins (Offences) Act 3) The Metal Token Act4) The Bronze Coin (Legal Tender) Act5) None of these

36.Which of the following is not a hedge fund ?1) Magellan2) Hibhbridge3) Gartner4) D.E. Shaw5) None of these

37.Preferred Provder Network (PPN) is a term used n which of thefollowing businesses ?1) Commodities trading

2) Retailing3) Health insurance4) Foreign trade

156

5) None of these

38.Which of the following has introduced a new tool named Data

Ware Housing and Business Intelligence System (DWBIS) forspeedy analysis of data and identification of violations?1) IRDA2) SEBI3) RBI4) TRAI5) None of these

39.The government has introduced three new consumer price

indices – CPI (Rural), CPI (Urban) & CPI (Combined) – with 2010as the base year recently. Which of the following is not among the

five major commodity groups covered in the indics ?1) Food, beverages and tobacco2) Fuel and light3) Education and schooling4) Housing5) None of these

40.Which of the following has launched the 'Everywhere TellerMachine' (ETM) in India ?1) Stanchart Bank2) HDFC Bank3) SBI4) Axis Bank5) None of these

157

41.Regional Rural Banks (RRBs) are owned b :I) Their Sponsor BankII) Government of the state where they are locatedIII) Union government1) I only2) I and II only3) II and III only4) I, II and III5) None of these

42.'Easy Exit Scheme 2011' floated by the Ministry of CorporateAffairs refers to which of the following ?1) Privatisation of loss-making public sector companies

2) Removal of names of defunct companies from the Registrar ofCompanies3) Closure of loss-making industries after paying off creditors4) Removal of SEZ status for companies not fulfilling exportobligations5) None of these

43.What is the financial inclusion campaign lacunched by thegovernment to bring banking services to vast unbanked rural areasin the country recently named ?1) Swawlamban2) Swatantra3) Swadhar4) Swabhiman5) None of these

158

44.Whch of the following statements about India's population andsurface area is are correct as per the provisional figures of Census

2011 ?I) India accounts for 2.4 percent of the world surface areaII) India sustains 17.5 percent of the world populationIII) Population density has increased between 2001 and 20111) I only2) I and II only3) III and I only4) I, II and III5) None of these

45.According to the RBI, branches serving population of ........ and

above are classified as Metropolitan branches

1) 5 lakh2) 10 lakh3) 25 lakh5) 50 lakh5) None of these

46.Which state government has announced introduction of 'VanitaFamily Card' for below poverty line families that will enable themtravel in road transport corporation buses at concessional fares

recently ?1) Karnataka2) Tamil Nadu3) Maharashtra4) Andhra Pradesh5) None of these

159

47.'French Auction' is a term used in which of the following sectorsof financial services ?1) Banking2) Insurance3) Capital markets4) Micro-finance5) None of these

48.The department of industrial policy and promotion (DPP) is

promoting NMIZs to improve the spread of industrilisation in thecountry. NMIZ refers to which of the following ?1) New Manufacturing and Investment Zones2) National Medium Industry Zones3) National Manufacturing Industry Zones4) National Manufacturing and Investment Zones

5) None of these

49.Which state / union territory has the lowest literacy rate as perprovisional figures of Census 2011 ?1) Orissa2) Mizoram3) Bihar4) Rajasthan5) None of these

50.The Department of Industrial Poliyc and Promotion announcedchanges in FDi policy recently. Which of the following statements is/ are correct ?

160

I) Indian companies have been allowe to convert foreign debt intoequityII) Indian companies have been allowed to issue equity to fundimports of machinery and capital goodsIII) 51 per cent FDI is currently allowed in multi-branch retail trade1) I only2) I and II only3) II and III only4) III and I only5) 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) 420) 3 21) 3 22) 4 23) 4 24) 3 25) 4 26) 3 27) 3 28) 229) 330) 4 31) 4 32) 4 33) 4 34) 4 35) 3 36) 3 37) 3 38) 239) 3 40) 441) 4 42) 2 43) 4 44) 4 45) 2 46) 4 47) 3 48) 4 49)3 50) 2

161

IBPS CLERKS GENREAL AWARENESS MODEL PAPER

1.Cairo Programme of Action (POA) refers to which of the following?1) Vaccination2) Adult literacy3) Food security4) Population control5) None of these

2.Justice Wadhwa Committee is reviewing the functioning of whichof the following ?1) Mid-day meal programme2) Rashtriya Swasthaya Bima Yojna3) Public Distribution System4) Public Distribution System5) None of these

3.What is the objective of the Central Registry launched under theprovisions of the SARFAESI Act 2002, recently ?1) To preent leakage of funds in delivery of central governmentsponsored rural emloyment sches2) To prevent tax evasion by Indians by keeping track of largetransactions in the banking system3) To prevent frauds in loan cases involving multiple lending fromdifferent banks on the same asset4) To ensure timely delivery of agricultural credit under prioritysector norms by public sector banks

162

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 devices2) Promoting the replaement of diesel by electric locomotives inIndian Railways3) Promoting spread of mob ile services in rural areas4) Promoting the use of battery operated vehicles5) None of these

5.What is the objective of India Smart Grid Forum (ISGF) ?1) To promote R 7 D collaboration between universities and industry2) To promote the use of non - renewable sources of energy3) To promote higher education using broadband

4) TO promote energy effeciency in power sector5) None of these

6.Which of the following became India's first bank to facilitatepayment of income tax using ATMs recently ?

1) State Bank of India2) Punjab National Bank3) Canara Bank4) Union Bank of India5) None of these

7.Which of the following has / have been selected as the sole fundmanager by the Employees Provident Fund Organisation (EPFO) tomanage its corpus of about Rs 3.5 lakh crore recetly ?

163

1) State bank of India2) ICICI Prudential3) HSBC4) Reliance Capital5) 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 inwhich country ?1) France2) Belgium3) Britain4) Netherlands5) None of these

9.The government has approved the creation of posts of 'IndirectTax Ombudsmen' in several cities recently. Which of the followingstatements about is / are correct ?I) It will be set up in seven citiesII) It will examine public complaints on income tax mattersIII) It will have the powers to give settle claims and give awards" tothe aggrieved parties1) I only2) II and III only3) II only4) III and I only5) None of these

10.What does 'remittances', a word we often come across in articles

164

on foreign exchange reserves in newspapers, refer to ?1) Postponement of paymnets to the IMF2) Money transfer by amigrant worker to their home country3) Donation by individuals to a chartiy4) Taxation obligation of developing countries5) None of these

11.Which state has launched the 'Jeevandhara' programme toprovide quality medicines at affordable prices to the poor recently ?1) Andhra Pradesh2) Maharashtra3) Rajasthan4) Gujarat5) None of these

12.The abbreviation 'EAG states' mentioned in the Census 2011refers to which of the following?1) Eligible Action Group States2) Economically Advancing Group States3) Empowered Action Group States4) Empowered Advancing Group States5) 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 reportreleased recently ?1) Agriculture2) Industry3) Trade

165

4) Transport Operators5) None of these

14.Which of the following statements is / are correct about thePension Fund Regulatory and Development Authority (PFRD) (1)Bill introduced in Lok Sabha ?I) The Bill gives statutory status to interim pension regulatorII) The Bill was supported by Left PartiesIII) The Bill was supported by the BJP1) I only2) I and II only3) II and III only4) III and I only5) None of these

15.The Banking Laws (amendment) Bill 2011 was tabled inParliament recently. Which of the following statements is / arecorrect as per current policy ?I) Nationalised banks cannot issue bonus sharesII) Nationalised banks can raise capital through rights issuesIII) Nationalised banks cannot issue preference shares1) I only2) I and II only3) II only4) III and I only5) None of these

16.The government has tabled a Constitution Amendment Bill onthe Goods and Services Tax (GST) in Parliament recently. WHich of

166

the following statements is /a re correct ?I) GST will replace many taxes levived at the Centre, includingexcise duty and service taxII) GST will replace many taxes levied at the state level, includingsales tax and entertainment taxIII) Currently states are not allowed to tax sale of goods, while theCentre cannot tax services1) I only2) I and II only3) II only4) III and II only5) None of these

17. The Banking Laws (amendment) Bill 2011 was tabled inParliaent recently. Which of the following statements is / are correctas per current policy ?1) At present promoters and shareholders of private banks cannotexercise voting rights in proportion to their shareholdingII) Voting rights of a non - governments shareholder in nationalisedbanks cannot exceed 5% irrespective of the size of his shareholdingIII) Voting rights of a shareholder in private sector banks cannot exceed 10% irrespective of the size of his shareholding1) I only2) I and II only3) II only4) III and I only5) None of these

18.What is the FDi limit in the insurance sector in India ?

167

1) 11%2) 26%3) 49%4) 51%5) None of these

19.Which of the following is launchign 'Rupay' as a domesticalternative to the global real-time payment processing firms like

Visa, MasterCard?1) CCA venue Payment Gateway2) PayPal Corporation of India3) Industrial Financial Corporation of India4) National Payments Corporation of India5) None of these

20. Export of which of the following crop is / are allowed currently ?

1) Wheat2) Non-Basmati rice3) Sugar4) Pulses5) None of these

21.Which of the following is the oil exploration & production

company operating in Siberia and owned by the ONGC ?1) Venture Production2) Regarl Petroleum3) Enterprise Oil4) Imperial Energy5) None of these

168

22. The government has decided provide equity support to publicsector 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 compulsorylabelling programme of the Bureau of Energy Efficiency (BEE) ?1) Air conditioners2) Refrigerators3) Geysers4) Distribution transformers5) None of these

24. Which foreign bank publishes the monthly Purchasing

Managers' Index (PMI) that measures the health of manufacturingsector in India and is based on a survey of top 500 companies ?

1) Barclays2) HSBC3) Stanchart Bank4) Citi Bank5) None of these

25. Which of the following has become the first state in the country

to announce a monthly allowance to unemployed under-graduatesrecently ?

169

1) Karnataka2) Rajasthan3) Goa4) Maharashtra5) 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) 1352) 1673) 1934) 2565) None of these

27.The Rashtriya Krishi Vikas Yojana (RKVY) will be implementedin the coming year (2011 - 12) with a budget of Rs. 7860 crore andnine sub - schemes. Which of the following sub-scheme refers to

livestock development, dairy farming and fisheries ?1) Rainfed Area Development Programme2) National Mission for Protein Supplements3) Promotion of Oil Palm4) Accelerated Fodder Development Programme5) None of these

28. What was the share of priority sector lending in lending bycommercial banks as on March 31, 2010 as per the 'StatisticalTables Relating to Banks in India 2009-10' report univeiled by theRBI recently ?

170

1) 16%2) 24%3) 31%4) 36%5) None of these

29. Under the current merger & acquisition policy, any deal involvingacquisition of ..... or more in a listed company requires the acquirerto 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 cent3) 15 per cent, 20 per cent4) 20 per cent, 25 per cent5) None of these

30.Pradhan Mantri Adarsh Gram Yojana (PMAGY) is for theintegrated development of which of the following category of villages?1) Villages where SCs comprise more than 25% of population2) Villages where SCs & STs comprise more than 50% of

population3) Villages where STs comprise more than 25% of population4) Villages where SCs comprise more than 50% of population5) 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 IntegratedWater Resources Development (NCIWRD) ?

171

1) 4000 billion cubic meters (BCM)2) 1869 BCM3) 1123 BCM4) 557 BCM5) None of these

32.Which foreign bank has the highest number of employees inIndia ?1) HSBC2) Royal Bank of Scotland (RBS)3) Standard Chartered Bank4) Citibank5) None of these

33.Which of the following statements about solvency ratio in theinsurance sector is /are correct?I) IRDA has directed general insurance companies to increase theirsolvency ratios for vehicle insurance

II) A high solvency ratio indicats lower probability of defaultIII) A higher solvency ratio indicates better financial health of the

insurance company1) I only2) I and II only3) II and III only4) I, II and III5) None of these

34. Which of the following regions had the highest number of bankbranches in the country as per the 'Statistical Tables Relating to

172

Banks in India 2009-10' unveiled by the RBI recently?1) Rural2) Semi-Urban3) Urban4) Metropolitan5) None of these

35.Which state has the highest number of commercial bankbranches in India as on March 31, 2010 as per the 'StatisticalTables Relating to Banks in India 2009-10' report unveiled by theRBI recently ?1) UP2) Maharashtra3) Andhra Pradesh4) Tamil nadu5) None of these

36. Which of the following does not come under the definition ofScheduled Commercial Banks in India ?1) Scheduled State Co - operative Banks2) cheduled Urban Co - operative Banks3) REgional Rural Banks4) None of the above5) None of these

37.Which of the following is / are implementing the TraditionalKnowledge Digital Library (TKDL) project ?I) Ministry of Science and TechnologyII) Council of Scientific and Industrial Research

173

III) Ministry of Health and Family Welfare

1) I only2) I and II only3) II and III only4) I, II and III5) None of these

38. What ws the poverty rate in 2009-10 according to recentestimates 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 ofpetroleum products in India is / are correct ?I) India's current petroleum refining capacity is 240 million tonnesper annum (MTPa)II) India's demand for the petroleum products is less than its refining

capacityIII) Further addition in refining capacity is likely to boost country's

exports of petroleum products1) I only2) I and II ony3) II and III only4) III and I only5) 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 loansfrom banks ?1) Experian Credit Information Co2) Indian Credit Rating Agency3) Credit Information Bureau Ltd4) Euifax Information Services5) None of these

41. Which bank has announced an end to its 'teaser' home loan

scheme recently ?1) Bank of India2) HDFC Bank3) Union Bank4) State Bank of India5) None of these

42.The government has decided to set up an inter-ministerial groupchaired 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 foodgrainsunder 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 family2) The quantity of foodgrains given depends on the number ofmembers in the BPL family3) The quantty of foodgrains given depends on the annual incomeof the BPL family4) 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 crores2) Rs. 0.95 lakh crore3) Rs. 1.17 lakh crore4) Rs. 1.46 lakh crore5) 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 Telecom2) Indian Army3) Department of Posts4) Indian Railways5) None of these

46. Accredited Social Health Activists (ASHAs) In which state areknown as 'Mitanins' ?1) Jharkhand

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2) Rajasthan3) Orissa4) Chhattisgarh5) None of these

47. 'Health and Wellness Tourism – Advantage India', a study thatoffers a 10 - point prescription to boost health and wellness tourismin India, is a joint initiative of YES Bank and ....1) MCI2) IMA3) FICCI4) CII5) None of these

48. Kimberley Process certificates are compulsory for for trade inwhich of the following ?1) Gold2) Diamonds3) Radioactive materials4) All the above5) None of these

49. The Ministry of Statistics 7 Programme Implementation recentlydecided to allow MPs to spend a maximum of Rs. 10.00 lakhs peryear from their MPLAD funds for :1) creating awareness about social welfare schemes of thegovernment2) building sports facilites in their constitutencies3) rehabilitation of those affected by natural calamities

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4) giving assistance to the physically challenged in theirconstitutencies5) None of these

50. The Foreign Contribution Regulation Act (FCRa) 2010 came intoeffect from May 1, 2011. Which of the following statements is / arecorrect ?I) 'Organisations of political nature' can receive foreign funds onlyafter prior clearances from the governmentII) Organisations that receive foreign funds will have to renew theirregistration once every three yearsIII) Banks will have to immediately report to the government aboutall foreign funds exceeding Rs. 10 lakh1) I only2) I and II only3) II only4) III only5) None of these

ANSWERS:1) 4 2) 4 3) 3 4) 4 5) 4 6) 4 7) 1 8) 4 9) 4 10)111) 1 12) 3 13) 2 14) 4 15) 4 16) 2 17) 4 18) 2 19)4 20) 321) 4 22) 2 23) 3 24) 2 25) 3 26) 2 27) 2 28) 3 29)3 30) 431) 4 32) 3 33) 4 34) 1 35) 1 36) 4 37) 4 38) 3 39) 340) 341) 4 42) 4 43) 1 44) 4 45) 3 46) 4 47) 3 48) 2 49)

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4 50) 4

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IBPS BANKING AWARENESS PRACTICE MODEL PAPER

1. From which state was the Janani 0 Shishu SurakshaKaryakram (JSSK) of the Ministry of Health and Family Welfarelaunched recently ?1) Kerala2) Maharashtra3) Haryana4) Rajasthan5) None of these

2. RBI has decided to release a Rs. 5 coin mark 1000 years ofwhich temple recently ?1) Sabarimala Temple2) Kashi Vishwanath Temple, Varanasi3) Brihadeeswara Temple, Thanjavur4) Vaishno Devi Temple5) None of these

3. Which of the following approved $ 1 billion loan for the National Ganga River Basin Project recently ?1) UNEP2) ADB3) World Bank4) All above jointly5) 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 / arecorrect ?I) Gross Domestic Product (GDP) at factor cost at 2004-05 prices is

Rs. 4877842 croreII) Per Capita GDP at factor cost at 2004-05 prices is Rs. 38,247III) Per Capita Net National Incoem (NNI) at factor cost at 2004-05prices is Rs. 35,9171) I only2) I and II only3) II and III only4) I and III only5) None of these

5. The government has set up ......... Vidyut Vyapar Nigam' as theCentral Agency to purchase solar power from the developers andsell it to distribution companies such as state electricity boards.1) BHEL2) NHPC3) REC4) NTPC5) None of these

6. The Reserve Bank of India (RBI) announced a change in itsoverseas direct investment guidelines to give Indian companiesmore 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 oftheir JVs and wholly-owned subsidiaries without seeking RBIpermissionII) These guidelines will be applicable for JVs in which Indianpromoters own at least 51 per centIII) Existing regulations allow restructuring of balance sheets only for

winding - up of JVs and wholly - owned subsidiaries abroad1) II only2) I and II only3) III and I only4) I, II and III5) None of these

7. Which public sector bank is associated witht he launch ofIndia's first Gramin Bank (Rural Bank) ATM Card in asociation with

Vranasi - based Kashi Gomti Samyut Gramin Bank and NationalPayments Corporation of India (NPCI) recently ?1) Allahabad Bank2) SBI3) Canara Bank4) UBI5) None of these

8. The government announced the setting up of a special wing -Directorate of Income Tax (Criminal Investigation) - to investigatecriminal offences under direct tax laws recently. Which of thefollowing statements is / are correct ?I) It will work under the purview of Enforcement DirectoratII) It will cover evasion of income tax and corporate tax

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III) It will cover evasion of excise and customs duties1) I only2) I and II only3) II only4) III only5) None of these

9. Which of the following is not among the five-fold strategyadopted by the government to tackle the menace of illicit funds ?1) Joining global crusade against 'black money'2) Creating an appropriate legislative framework3) Setting up institutions for dealing with Illicit Funds

4) Offering amnesty schemes to bring back black money5) None of these

10. The National Food Security Mission (NFSM) does not cover : 1) Rice2) Coarse Cereals3) Pulses4) All the above5) None of these

11. Which of the following statements about rules governing theNew Pension Scheme (NPS) is / are correct ?

I) Fund managers under NPS can be from public sector as well asprivate sectorII) NPS funds cannot be invested in equity marketsIII) Both government and private sector employees can invest inNPS

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1) I only2) I and II only3) II and III only4) I and III only5) None of these

12. SCORES is a complaints redressal system launched by :1) SEBI2) IBA3) CBDT4) CCI5) None of these

13. Direct tax collections account for what share of GDP in India ?

1) 9.26 per cent2) 7.62 per cent3) 5.66 per cent4) 4.72 per cent5) None of these

14. The government has increased the duty - free import quota forgarments from which neighbouring country by two million pieces to10 million recently ?

1) Nepal2) Bangladesh3) Myanmar4) Bhutan5) None of these

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15. The Committee set up to review the functioning of the NationalSmall Savings Fund (NSSF) submitted its report to the FinanceMinistry recently. Which of the following statements is / are correct ?I) It has recommended an increase in the ceiling on annualsubscriptions in Public Provident Fund (PPF).II) It has recommended an upward revision of the rate of interest inPost 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 Securities1) I only2) I and II only3) II and III only4) I and III only5) None of these

16. Which of the following statements regarding recent changes inthe Indira Gandhi National Old Age Pension Scheme (IGNOAPS) is/ are correct ?I) Age limit for identification of beneficiaries has been loweredII) 60 years is the new age limit for identification of beneficiaries

III) Monthly pension has been increased for al beneficiaries

1) I only2) I and II only3) II only4) I, II and III5) 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 2025II) The objective is to raise the share of manufacturing in GDP to30% by 2025III) Manufacturing Industry Promotion Board (MIPB) should be setup to facilitate overseas investments by Indian companies1) I only2) I and II only3) II and III only4) I, II and III5) None of these

18. The government announced certain changes in the IndiraGandhi 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 IGNOAPScurrentlyII) 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 schemehas been lowered1) I only2) I and II only3) II only4) II and III only5) 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) 5002) 10003) 15004) 20005) None of these

20. The new series of the Index of Industrial Production (IIP) wasunveiled recently. Which of the following statements is / are correct?I) 2004-05 will be the base yearII) The weight of manufacturing in the new IIP has been increasedIII) The weight of mining and electricity has been reduced in the newIIP1) I only2) I and II only3) II and III only4) I, II and III5) None of these

21. The government replaced the Duty Entitlement Pass Book[DEP(2)] scheme of export promotion replaced with Duty Drawbackscheme on September 30. Which of the following statements is / are

correct?I) DEPB was a reimbursement of Customs duty paid by an exporteron an imported input used in the export product II) DEPB was a cashless export promotion schemeIII) DEPB was administered by the revenue department of FinanceMinistry

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1) I only2) I and II only3) II and III only4) III and I only5) 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 economistArthur Okun ?1) Corruption Perception Index2) Network Readiness Index3) Terrorism Risk Index4) Misery Index5) None of these

24. Which of the following category of workers were included

under the Rashtriya Swasthya Bima yojana (RSBY) recently ?1) Railway porters2) Beedi workers3) Carpenters4) Masons5) None of these

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25. Which of the following have been disallowed from openingbranches abroad by the RBI recently ?1) Private sector banks2) Pension Funds3) Cooperative banks4) NBFCs5) None of these

26. Which of the following is the power excahnge being set up byNPTC ?1) Bharat Power Exchange Ltd2) National Power Exchange Ltd3) Power Exchange India Ltd4) None of the above5) None of these

27. India has filed an application for an extension of its ExclusiveEconomic Zone (EEZ) from ...... nautical miles to ............. nauticalmiles with the United Nations Commission on the Law fo the Sea1) 100, 3002) 200, 2503) 100, 2504) 200, 3505) None of these

28. Which was India's best performing state during 1980-2004 interms of productivity of the organised manufacturng sector,according to a RBI sponsored study unveiled recently ?

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1) Bihar2) Tamil Nadu3) Karnataka4) Haryana5) None of these

29. What was the insurance penetration (percentage of insurancepremium to Gross Domestic Product) in India in 2009 according tofigures released by the Finance Ministry in August 2011 ?

1) 3.142) 4.803) 4.704) 5.395) None of these

30. Indian - mining companies have bid for a stake in Hajigak .....ore mines in Afghanistan1) Bauxite2) Copper3) Iron4) Coal5) None of these

31. India and ir Lanka signed a MoU to develop the ....... port inJuly 20111) Kankesanthurai2) Hambantota3) Trincomalee4) Galle

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5) None of these

32. The establishment of Serious Fraud Investigation Office totackle white collar crimes is based on the recommendations of : 1) Vepa kamesam committee2) J. Venkateswarlu committee3) Jaydeep N. Shah committee

4) Nilesh S. Vikamsey committee

33. 'Sukhi Griha Parikalpana' is a housing welfare scheme forrehabilitation of slum dwellers launched by which centralgovernment ministry?1) Railway2) Rural Development3) Urban Development4) Labour & Employment5) None of these

34. A draft policy on foreign direct investment (FDI) in multi-brandretail was unveiled by a committee of secretaries (CoS) in July2011. 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 tradeIII) FDI upto 51% is permitted in single - brand retail1) I only2) I and II only3) II and III only4) 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 thegovernment in July 2011.1) State Bank of India2) Bank of India3) Axis Bank4) ICICI5) None of these

36. What is the base year of the new series of Consumer PriceIndices (CPI) for rural, urban and combined introduced by thegovenment in January, 2011 ?1) 20052) 20073) 20084) 20105) None of these

37. Which of the following was imposed a penalty of Rs. 55.5crore for abusing its dominant position in the currency derivative(CD) market in June 2011 ?

1) National Stock Exchange2) MCX-SX3) Bombay Stock Exchange4) OTCEI5) None of these

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38. Use of the which of the following softwares in reportingfinancial results of companies was made compulsory by thegovernment recently?1) XBRL2) Tally3) HTML4) COBOL5) None of these

39. What is the minimum time of operation an insurance companyis required to launch an initial public offer (IPO) ?1) 3 years2) 5 years3) 7 years4) 10 years5) None of these

40. The Finance Ministry recently unveiled the structure of theinfrastructure debt funds (IDFs) proposed in Budget 2011-12. Whichof 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 SEBI1) I and II only2) II only3) II and III only4) I, II and III5) None of these

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41. The securities and Exchange Board of India (SEBI)announced key changes int he Takeover Code governing mergersand acquisitions of companies in the country in July 2011.According to the new rules an investor whose shareholding in acompany exceeds a certain limit will have to make an open offer to

acquire a further ..... of the shareholding of the company1) 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. Thisis India's third CEPA after .......1) USA and United Kingdom2) Singapore and South Korea3) Malaysia and Thailand4) China and Hong Kong5) None of these

43. The European Union has decided to lift restrictions on India'sexport of which of the following passing through European ports ?1) Processed food2) Cheap medicines3) Arms and Ammunition4) Radioactive waster5) None of these

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44. Which state has the highest slum population in India accordingto Housing and Urban Poverty Alleviation Ministry ?1) Maharashtra2) Andhra Pradesh3) Uttar Pradesh4) West Bengal5) None of these

45. What is India's Per Capita Income at current prices in 2010-11?1) Rs. 41,5322) Rs. 45,2783) Rs. 49,2944) 54.8355) 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 bankshas suggested sweeping changes in banking practices in its reportsubmitted to the Reserve Bank of India (RBI) in August 2011. Whichof the following statements regarding its recommendations is / arecorrect ?

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I) There should be a common customer service call centre for allbanksII) Insurance cover for deposits should be raised to Rs 500, 000from Rs 100,000 nowIII) Banks should offer savings accounts with facilities like chequefacility, ATM card, etc without prescribing a minimum balancerequirement1) I only2) I and II only3) II and III only4) I, II and III

48. The State Bank of India (Subsidiary Banks Laws) AmendmentBill 2009 was passed by the Lok Sabha on August 11, 2011. Whichof the following statements is / are correct ?I) It allows subsidiary banks of State Bank of India (SBI) to raisecapital through public issue route or through preferential allotment ofequity sharesII) It authorises the Centre to approve increase in or reduction of

the authorised capital of a subsidiary bankIII) It permits the SBI Chairman to nominate an official of the StateBank or the subsidiary bank as the Chairman of the Board of asubsidiary bank1) I only2) I and II only3) II and III only4) I, II and III5) None of these

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49. Which of the following is / are sold below market price toconsumers in India ?1) Kero sene2) Diesel3) LPG4) All the above5) None of these

50. The Standing Committee on Petroleum and Natural Gas in itsreport submitted on August 3, 2011 has called for an end to sale ofsubsidised domestic cooking gas (LPG) for people with income ofmore than ....... per annum. 1) Rs 2 lakh2) Rs 3 lakh3) Rs 4 lakh4) Rs 6 lakh5) 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) 419) 1 20) 121) 2 22) 3 23) 4 24) 2 25) 4 26) 2 27) 4 28) 1 29)4 30) 331) 1 32) 1 33) 1 34) 4 35) 1 36) 4 37) 1 38) 1 39) 440) 441) 4 42) 2 43) 2 44) 1 45) 4 46) 4 47) 4 48) 4 49)4 50) 4

197

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 riskof volatility in currency rates?a.IMFb.Reserve Bank of India

c. SEBId.Union Ministry of Finance

Ans: b2. 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 Indiab. Income Tax Department c. Employees’ Provident Fund Organisationd.Corporate Affairs Ministry

Ans: b3.(1) The report on Customer Service in Banks by a committee

chaired by M. Damodaran, former Chairman of the Securities andExchange Board of India (SEBI) that was released on 3 July 2011recommended an increased deposit insurance cover of Rs.5 lakh soas to encourage individuals to keep all their deposits in banks. (2) The panel also suggested blocking of lost ATM cards throughSMS and immediate restoration of funds in case ofnon-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 2c. Both 1 & 2

d. None of the above

Ans: b4. The Reserve Bank of India (RBI) in a bid to tame inflationary

pressure hiked the short-term indicative policy rate (repo rate) by 50basis points on 26 July 2011. The repo rate currently stands at whatpercentage?a. 7%b. 7.5%

c. 8%d. 8.5%

Ans: c5. Which bank posted a 99 per cent drop in net profit at Rs 21 crorefor the fourth quarter ended 31 March 2011 against Rs 1867 crore

during the corresponding period in 2010?a. Indian Overseas Bankb. State Bank of India

c. Bank of Indiad. United Bank of India

Ans: b6. Who did global payments processing company MasterCardappoint as the General Manager, South Asia and CountryPresident, India?a. T. V. Seshadri b. Vicky Bindrac. Tunde Lemo

d. Ajay BangaAns: a

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7. Government of India on 19 July 2011 appointed UshaAnanthasubramanian, former general manager of Bank of Baroda(BoB) as executive director of which public sector lender?a. Central Bank of Indiab. Punjab National Bankc. United Bank of India

d. Gramin Bank

Ans: b8. 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 Bankc. Corporation Bank

d. United Bank of India

Ans: b9. Which bank signed a memorandum of understanding with Dewan

Housing Finance Corporation (DHFL) under which DHFL willdistribute home loans to Yes Bank's customers?a. Canara Bank

b. ABN Amro bankc. Yes Bank

d. HSBC

Ans: c10. Which life insurance company in India launched a new

non-linked health insurance plan, Jeevan Arogya?a. HDFC Standard Life Insurance Co. Ltdb. Life Insurance Corporation of Indiac. IDBI Fortis Life Insurance Company Ltd. d. SBI Life Insurance Co. Ltd

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Ans: b11. Which of the following public sector banks in November 2011froze its lending to the power sector?a. State Bank of India

b. Allahabad Bank

c. Punjab National Bankd. United Bank of India

Ans: b12. Which Indian bank on 10 May 2011 raised benchmark primelending 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 Bankc. Punjab National Bankd. Bank of BarodaAns: a13. The Reserve Bank of India on 26 April 2011 fined 19 banks,including the country's top private and foreign banks for violating itsguidelines on derivatives. Which is the only public sector bank on

the list of banks to be fined?a. State bank of Indiab. Punjab National Bankc. Bank of Indiad. Indian BankAns: a14. The Reserve Bank of India on 25 August 2011 released itsAnnual Report for 2010-11. Which of the following was notdiscussed 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 financialaccountsd. role of regulatory bodies in controlling the financial markets

Ans: d15. Reserve Bank of India (RBI) panel headed by headed by UshaThorat, Director, Centre for Advanced Financial Research andLearning (CAFRAL) on 29 August 2011 came up with suggestion onnon-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 minimumasset size of more than Rs.25 crore for registering any newnon-banking finance company (NBFC)

2. Transfer of shareholding, direct or indirect, of 25 per cent andabove, change in control, merger or acquisition of any registeredNBFC 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 threeyears for all registered deposit-taking and non-deposit-takingNBFCs.4. NBFCs would be subject to regulations similar to banks whilelending to stock brokers and merchant banks and similar to stockbrokers, as specified by the Securities and Exchange Board of India(SEBI)a. 1 & 4

b. 2 & 4

c. Only 4d. Only 1Ans: d

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16. Which Indian PSU bank in tune with its plans to expand its retaildivision in the UK entered the mortgage market in the country forthe first time?a. Punjab National Bankb. Oriental Bank of Commercec. State bank of Indiad. Indian Overseas BankAns: c17. Which of the following banks set up two loan processing centresfor the small and medium enterprise (SME) segment on a pilot basisin Bangalore & in New Delhi in September 2011?

a. Corp Bankb. United Bank of India

c. Syndicate Bank

d. Bank of BarodaAns: c18. The government suspended M Ramadoss for alleged violations

in issuing insurance cover to an airline during his stint as head ofanother state-run insurer. To which insurance group did he belongto?a. New India Assurance

b. LIC

c. GIC

d. ICICI Insurance

Ans: a19. Which of the following banks in early May 2011 entered into atie-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 Indiad. HDFC Bank

Ans: a20. Which are the two Gujarat-based cooperative sector lenders onwhich Reserve bank of India imposed a financial penalty of Rs 1lakh each for violation of various rules, including anti-moneylaundering guidelines?1. Shree MahalaxmiMercantile Co-operative Bank2. Rander People's Co-operative Bank

3. Abad District Co Op Bank

4. Ahd Mercantile Co-Op Bank Ltda. 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 25basis points–was news in some major financial newspapersrecently. 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 conferencessaid 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 getsfrequent 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 productsAns : (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 theseAns : (B)

4. What is the full form of 'FINO' a term we see frequently infinancial 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 theseAns : (E)

5. Which of the following is / are commodity/ies on which subsidy isgiven to farmers / poor in India ?1. Fertilizer2. Kerosene3. LPG(A) Only1(B) Only 2(C) Only 3(D) Only 1 and 3

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(E) All 1, 2 and 3Ans : (E)

6. 'Bhagyam Oilfields' which were recently in news are located inwhich of the following states in India ?(A) Rajasthan(B) Gujarat(C) Assam(D) Maharashtra(E) KarnatakaAns : (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. 1,60,000crore which will bring 'Bad Debts' almost at 'Nil level' and no specialtreatment 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 3Ans : (E)

8. Which amongst the following countries is not a member of the

207

TAPI pipe line project, which was in news recently ?(A) India(B) Afghanistan(C) Portugal(D) Pakistan(E) TurkmenistanAns : (C)

9. An agreement on Arms Reduction popularly known as 'START' is

one of the major issues in the way of smooth relations betweenwhich of the following two countries ?

(A) India–Pakistan(B) India–China(C) China–Japan(D) USA–Russia(E) Russia–IranAns : (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) HyderabadAns : (E)

11. Which of the following international agencies/ organizations hadinitiated an "International Convention for the 'Protection of All

208

Persons from Enforced Disappearance' , which came into effectrecently ?(A) World Health Organisation (WHO)(B) International Court of Justice(C) International Maritime Organisation(D) International Atomic Energy Agency(E) United Nations organizationAns : (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 AfricaAns : (E)

13. The process of acquisition of agricultural land and itscompensation to farmers recently came up as a major issue inwhich of the following states ? (It also created law and orderproblem in the State)(A) Haryana(B) Gujarat(C) Uttar Pradesh(D) Rajasthan(E) PunjabAns : (C)

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14. What does the letter 'L' denote in term 'LAF' as referred everynow and then in relation to monetary policy of the RBI ?(A) Liquidity(B) Liability(C) Leveraged(D) Longitudinal(E) LinearAns : (A)

15. BP Pic which was in news recently is a major internationalcompany in field of–(A) Heavy Machinery(B) Oil exploration and processing(C) Atomic Energy(D) Information Technology(E) None of theseAns : (B)

16. Who amongst the following has been appointed as the newcoach 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 theseAns : (A)

18. K. Balachander, who was awarded prestigious Dada SahebPhalke Award-2010, is basically a/an–

(A) Actor(B) Director(C) Photographer(D) Music Director(E) ChoreographerAns : (D)

19. Banks and other financial institutions in India are required tomaintain a certain amount of liquid assets like cash, precious metals

and other short term securities as a reserve all the time. In BankingWorld this is known as–(A) CRR(B) Fixed Asset(C) SLR(D) PLR(E) None of theseAns : (A)

20. Which of the following Space agencies recently launched threesatellites and placed them into Polar Sun Synchronous Orbit

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successfully?(A) NASA(B) ROSCOSMOS(C) cnsa(D) ISRO(E) JAXAAns : (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 produceonly.2. Now villagers are free to sell bamboo in their community forestareas.3. Gramsabha is given right to issue transport passes to legallytransport the produce.(A) Only 1(B) Only 2(C) Only 3(D) All 1, 2 and 3(E) None of theseAns : (D)

22. Union Cabinet recently passed a Rs. 7000 crore project toclean-up which of the following rivers in India?

(A) Narmada(B) Ravi(C) Ganga(D) Chambal

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(E) KrishnaAns : (C)

23. As per estimates of the Planning Commission of India the targetgrowth 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 theseAns : (B)

25. Which of the following schemes is not launched by the Ministryof 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 DevelopmentAns : (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 mainframeAns : (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-mailAns : (B)

28. Which of the following is a program that uses a variety ofdifferent approaches to identify and eliminate spam ?(A) Directory search(B) Anti-spam program(C) Web server(D) Web storefront creation package(E) VirusAns : (B)

29. Connection or link to other documents or Web Pages thatcontain related information is called–(A) dial-up

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(B) electronic commerce(C) hyperlink(D) e-cash(E) domain nameAns : (C)

30. Which of the following is a programming language for creatingspecial programs likeapplets ?(A) Java(B) cable(C) domain name(D) Net(E) COBOLAns : (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 operationsAns : (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 ascommunication links to the Internet that provide help andunderstanding to the end user is known as–(A) presentation file(B) information technology(C) program(D) worksheet file(E) FTPAns : (B)

34. Which of the following is contained on chips connected to thesystem board and is a holding area for data instructions andinformation ? (processed data waiting to be output to secondarystorage)(A) program(B) mouse(C) Internet(D) memory(E) modemAns : (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 presentationsAns : (C)

36. Portable computer, also known as laptop computer, weighingbetween 4 and 10 pounds is called–

(A) general-purpose application(B) Internet(C) scanner(D) printer(E) notebook computerAns : (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 theseAns : (C)

38. Which of the following is billionth of a second ?(A) Gigabyte(B) Terabyte(C) Nanosecond(D) Microsecond(E) TerasecondAns : (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 staffAns : (E)

40. Customisation is useful for–(A) Designing customer specific products(B) Call centers(C) Publicity(D) Motivating the staff(E) Cold callsAns : (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 visionAns : (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 designsAns : (B)

44. A Market Plan is–(A) Performance Appraisal of marketing staff(B) Company Prospectus(C) Documented marketing strategies

(D) Business targets(E) Call centreAns : (C)

45. Marketing channels mean–(A) Delivery objects(B) Sales targets(C) Delivery outlets(D) Delivery boys(E) Sales teamsAns : (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-lawsAns : (D)

47. Service Marketing is the same as–(A) Internet Marketing(8) Telemarketing(C) Internal Marketing(D) Relationship Marketing(E) Transaction MarketingAns : (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 productsAns : (C)

49. Innovation in marketing is same as–(A) Motivation(8) Perspiration(C) Aspiration(D) Creativity(E) TeamworkAns : (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-customersAns : (A)

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GENERAL AWARENESS MODEL QUESTIONS

1. As per the existing norms and policies of the RBI, Banks arerequired 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 premiumB. prime lending rateC. repo rateD.reverse repo rateAnswer: (B)

3. Which of the following was the mutual fund listed on the newlylaunched mutual fund platform on National Stock Exchange ?

A. UTI Mutual FundB. SBI Mutual FundC. LIC Mutual FundD. Bank of Baroda Mutual FundAnswer: (A)

4. Which of the following cannot be called as debt instrument as

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referred in financial transaction ?A.certificate of depositB. bondsC. stocksD. loansAnswer: (D)

5. Which of the following organizations/agencies has recentlyreleased "Asian Development Outlook 2011" ?

A. world bankB. Asian Development BankC. UNCTADD. UNESCOAnswer: (B)

6. When was the "Self Help Group" bank linkage programme started

?A. 1992B. 1995C. 1998D. 2001Answer: (A)

7. While returning cheques, the uniforms regulations and rules for

bankers clearing houses expect the banks that the returning memosent by banks to the collecting banks :A.should be signedB.should be signed or initialedC.if it is computerized no signatures or initials are required

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D.all of the aboveAnswer: (B)

8. The RBI on July 5,2011 extended the .......... percent ceiling ofbank investment in liquid schemes of mutual funds to includeshort-term debt funds.A.5B.8C.10D.12Answer: (C)

9. RBI has introduced a new series of 'star' bank note, which will beissued in denominations of ?A. Rs. 10 , Rs. 20 , Rs. 50B. Rs. 10 , Rs. 50 , Rs. 100C. Rs. 20 , Rs. 50 , Rs.100D.Rs. 20 , Rs. 100 , Rs. 500Answer: (A)

10. Recently which bank has successfully completed 100 years?A. Punjab National bankB. Central Bank of IndiaC. Bank of IndiaD.State Bank of IndiaAnswer: (B)

11. If you see a big hoarding at a prominent public place, the punchline 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 AffairsC. National Human Rights CommissionD. National Commission for FarmersAnswer: (C)

12. Who amongst the following was India’s official candidate for the

post of UNO’s Secretary General ?A.Mr. Shyam SaranB. Mr. Vijay NambiarC.Mr. Shashi TharoorD.Dr. C. RangarajanAnswer: (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 BankingB. Micro CreditC. Retail BankingD. Internet BankingAnswer: (B)

14. Many a time we read in the newspapers that RBI has changedor revised a particular ratio/rate by a few basis points. What is basispoint ?A. Ten per cent of one hundredth pointB. One hundredth of 1%

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C. One hundredth of 10%D.Ten per cent of 1000Answer: (B)

15. Expand the term NREGA—A.National Rural Employment Guarantee ActB. New Rural Employment Guarantee AgencyC.National Rural Employment Guarantee ActD.National Rural Employment Guarantee AgencyAnswer: (A)

16. Which of the following awards is not given for excellence in thefield of literature ?A.Arjun AwardB. Bharatiya Gnanpith AwardC.Nobel PrizeD. Booker PrizeAnswer: (A)

17. Who is the author of the book ‘Future Shock’ ?A.Kenneth BlanchardB.Napoleon HillC.Tom PetersD.Alvin TofflerAnswer: (D)

18. The market in which long term securities such as stocks andbonds are bought and sold is commonly known as—

A.Capital Market

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B .Bull MarketC.Commodities Exchange

D.Bullion MarketAnswer: (D)

19. The Tarapore committee report is concerned with which of thefollowing ::A.SBIB.RBIC.SEZD.Capital A/c convertibilityAnswer: (D)

20. The per-capita income in India is estimated by ?A.Central statistical organizationB. RBIC. Central bankD. Census commissionAnswer: (A)

21. Which of the following is not a bank or finance company?A.BarclaysB. BNP ParibasC.LufthansaD. HSBCAnswer: (C)

22. Approximately what per cent of the Indian population lives on $1 or even less a day?

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A. 35B. 30C. 25D. 20Answer: (A)

23. The J.L. Nehru Centre for Advanced Scientific Research wasrecently in the news because of:A.ultra modern scientific courses in IndiaB.Ist nano-technology lab in India

C.success in DNA codingD.international meeting of scientistsAnswer: (B)

24. Karvar, Sasan, Akaltara, Mudra and Ratnagiri are the sitesproposed for:A.archaeological survey

B.test sites for Indian missilesC.hydroelectric power projectsD.ultra-mega power plantsAnswer: (D)

25. Which of the following is NOT one of the recommendations of the committee setup on Financial Sector Reforms under theChairmanship of Raghuram G.Rajan ?(1) Give more freedoms to banks to setup branches and ATMSanywhere(2) Setup an office of financial ombudsmen(3) All deposits taking institutions should be free from the

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supervision of the RBIA.Only 1B.Only 2C.Only 3D. AllAnswer: (A)

26. Federal Reserves is the Central Bank of—

A.ChinaB.CanadaC.U.S.A.D.JapanAnswer: (C)

27. Which of the following companies of Indian origin has beenplaced amongst the World's seven Best Firms in Financial Sector ?A.ICICI BankB.HDFC BankC.Bajaj CapitalsD.IDBI BankAnswer: (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 missionB.accelerated fodder development programC.bringing green revolution to eastern IndiaD.national mission for protein supplements

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Answer: (A)

29. Who among the following leaders did not attend the IBSAsummit in October 2011 ?A.Dmitri MedvedavB. Manmohan singhC.Jacob ZumaD. Dilma RaussefAnswer: (B)

30. Financial market department was setup in RBI in ?A.July 2006B.July 2005C.August 2006D. August 2005Answer: (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 thehubby who swipes the debit card at an ATM.

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“Women may be smarter when it comes to money matters. The45-day free credit period that comes with shopping with a creditcard is an irresistible attraction,” said Mr Sanjay Sharma, ManagingDirector 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 customersatisfaction in the usage of ATMs across the country are: the use ofcards for shopping was more among the youth; the use of debit cards for shopping was the highest in Maharashtra and AndhraPradesh.Further, debit cards were mainly used for withdrawing cash or

shopping purposes and the use of these cards for billspayment/ticket purchase was still low. The survey covered 600ATMs distributed proportionately over metro, urban, semi-urban andrural regions, constituting one per cent of the total number of 60,000ATMs 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 tohave their accounts in state-run banks, citing safety as the mostimportant criteria, the banking regulator's findings reveal thatcustomer service complaints against public sector banks have risenin 2010-11 as compared to those against private sector and foreignbanks.‘Customer satisfaction is an integral element in inculcating trustamong the common people on the banking sector,' states theReport 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 alsoBanking Ombudsman (BO) offices in 15 major banking centres.The BO has since proved to be a forum for redressing complaintsreceived from customers.

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According to the latest Trend and Progress report, the number ofcomplaints 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 inChennai, where it fell from 12,727 in 2009-10 to 7,668 in 2010-11, inNew Delhi from 12,045 to 10,508 and in Mumbai from 10,058 to7,566.In the midst of this declining trend, Bhopal, Patna, Ahmedabad,Chandigarh and Guwahati reported an increase in the number ofcomplaints.The report further points out that the number of complaints perbranch was high for foreign banks at 22.34, with almost a-fourth ofthe 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 DirectSelling Agents (DSA) were received against foreign banks and newprivate 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 ofthe former Chairman of SEBI, Mr M. Damodaran, to examinebanking services rendered to retail and small customers, includingpensioners in 2010.The Committee was also mandated to look into the grievanceredressal mechanism prevalent in banks, suggest measures for

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

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Regional rural banks see healthy growth in saving bankdeposits

November 15, 2011It 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 Rs15,000 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 constitutedalmost 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 totalcredit. 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 (Rs1,884 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 contingenciesdecreased 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 thecredit of running the most extensive global networks from amongthe 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 ofBanking 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 thelargest expansion of foreign operations by opening five new officesabroad during the year under reference.ICICI Bank (19) led the private sector banks in terms of largestforeign 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 andCommercial Bank of China, Rabobank International and Woori Bankto open one branch each.Besides, Sumitomo Mitsui Banking Corporation was allowed toopen 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) Canada2) Russia3) Spain4) France5) Italy

2. Which of the following is a Public sector bank?

1) Dena2) Karnataka3) South Indian4) Karur Vysya5) IndusInd

3. Which of the following committees is associated with themicrofinance institutions (MFIs)?1) B.N. Srikrishna2) Kirit Parikh3) Rangarajan4) Y.H. Malegam5) Bimal Jalan

4. U.K.Sinha is the Chairman of which of the following regulators?

1) SEBI2) IRDA3) FMC

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4) TRAI5) AERA

5. Who became the first Indian author to win the Man Booker Prize

in 1981?1) Salman Rushdie2) Arundhati Roy3) Kiran Desai4) Aravind Adiga5) None

6. Which of the following cups is associated with Lawn Tennis?

1) Yonex Cup2) Hopman Cup3) Thomas Cup4) Uber Cup5) Tunku Abdul Rahman Cup

7. Which of the following international groups/organizations consistsof only developing countries?1) UNO2) G83) G154) G205) OECD

8. The banking Ombudsman sche-me was formulated by theReserve bank of India to provide an expeditious redressal

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grievan-ce mechanism to bank custom-ers. When did this schemebeco-me operational?1) 19902) 19923) 19954) 19985) 1996

9. Which of the following is the pu-nchline of the Bank of Baroda?

1) With you all the way2) Pure banking Nothing else3) The Banker to every Indian4) Nation banks on us5) India's International Bank

10. Taufik Hidayat, Joachim Person, Lin Dan and Chetan Anand arethe famous players associated with which of the following sports?1) Tennis2) Table Tennis3) Badminton4) Chess5) Golf

11. The Lok Sabha passed a Bill recently to change the name ofwhich of the following states?1) Assam2) Orissa3) Uttarakhand4) 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 July2011?1) Uganda2) Peru3) Mexico4) South Africa5) None of these

13. Ms. Pauline Nyiramasuhuko became the first-ever woman to be

found guilty of genocide by an international tribunal. She was aformer minister for women's em-powerment of which of the followingcountries?1) Sudan2) Algeria3) Ethiopia4) Rwanda5) Uganda

14. Who was appointed the Central Vigilance Commissioner (CVC)in July 2011?1) P.J. Thomas2) Pradeep Kumar3) Ajit Seth4) Ajit Singh5) None of these

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15. What is the annual funding under the Member of ParliamentLocal Area Development Scheme (MPLADS) for the current fiscal(2011-12)?1) Rs. 2 Crore2) Rs. 3 Crore3) Rs. 5 Crore4) Rs. 4 Crore5) None of these

16. Which country recently opened the world's longest sea bridge(36.48km) to traffic?1) India2) USA3) China4) Japan5) Russia

17. Which Indian shuttler won the title at the Maldives Internationalbadminton challenge held in Male, Maldives in June 2011?1) Saina Nehwal2) P.C. Tulasi3) P.V. Sindhu4) Gutta Jwala5) Ashwini Ponappa

18. Mayookha Johny of India won a gold medal at the 19th Asianathletics championships in Kobe, Japan in July 2011. In whichspo-rting event did she win the gold medal?1) High Jump

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2) Pole Vault3) Shot Put4) Discus throw5) Long Jump

19. The Karpoor Chandra Kulish International Award is given forexcellence in which of the following fields?1) Classical music2) Print Journalism3) Movies4) Sports5) None of these

20. Which Indian-origin student won the 2011 Scripps NationalSpel-ling Bee competition held in Maryland, USA?1) Sameer Mishra2) Kavya Shivshankar3) Anamika Veeramani4) Sukanya Roy5) None of these

21. Naresh Goyal has been re-elected to the prestigious Board ofGovernors of the International Air Transport Association (IA-TA)from 2011 to 2013. He is the chairman of which of the following

airlines?1) SpiceJet2) Kingfisher Airlines3) IndiGo4) Jet Airways

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5) None of these

22. Broken Republic is a book about the Maoist guerrilla movementin the forests of central India. Who is the author?

1) Siddhartha Deb2) Kiran Desai3) Anita Desai4) Arundhati Roy5) None

23. Who was honoured with the Jawaharlal Nehru Award for

International Understanding for 2009 in May 2011?

1) Nelson Mandela2) Aung San Suu Kyi3) Angela Merkel4) Luiz Inacio Lula da Silva5) None of these

24. Yingluck Shinawatra is the first woman Prime Minister of whichof the following countries?1) Myanmar2) Thailand3) Cambodia4) Malaysia5) 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) Mumbai2) Chennai3) New Delhi4) Kolkata5) Pune

26. Which country has decided to phase out nuclear power by 2034after the Japan disaster shook pu-blic confidence in the Industry?1) France2) USA3) India4) Switzerland5) Pakistan

27. The Reserve Bank of India has directed banks to reimbursecustomers for amounts wrongfully debited from their accounts infailed ATM transactions within how many days of an accountholder's complaint?( With effect from July 1,2011)1) 72) 103) 124) 155) 30

28. Who won the U.S. open golf championship in June 2011?

1) Tiger Woods2) Graeme McDowell3) Lucas Glover

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4) Rory McIlory5) None

29. Who became the Ambassador of India to the United States ofAmerica in August 2011?1) Shiv Shankar Menon2) Meera Shankar3) Ranjan Mathai4) Nirupama Rao5) None

30. Sepp Blatter was re-elected as the President of which of thefollowing sports governing bodies in May 2011?1) ICC2) FIFA3) IAAF4) FIH5) None of these

31. The concessional rate of interest which is lower than the normal bank rate of interest is called?1) Repo rate2) Reverse repo rate.3) Cash Reserve ratio4) bank rate5) base rate

32. Which scheme seeks to improve the conditions of the urbanslum dwellers living below the poverty line that do not possess

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adequate shelter?1) JNNURM2) NREGP3) VAMBAY4) Bharat Nirman5) None of these

33. Who is the author of the book 'My Country, My Life'?1) Khushwant Singh2) Jaswant Singh3) Jawaharlal Nehru4) L.K. Advani5) None of these

34. Oscar awards are given annually in which of the following

fields?1) Literature2) Science3) Peace4) Economics5) Films

35. Which of the following institutions regulate the Unit LinkedInsurance Plans (ULIPs)?1) SEBI2) LIC3) RBI4) IRDA5) FMC

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36. Which of the following banks' mascot is the DOLLe (dolphin)?

1) IndusInd2) Syndicate3) Andhra4) Bank of India5) State Bank of India

37. In which field is Pritzker Prize given?1) Mathematics2) Architecture3) Medicine4) Peace5) 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 thebook 'The Siege of Krishnapur, that won the 1973 Booker Prize'.)

1) P.H. Newby2) J. G. Farrell3) V. S. Naipaul4) William Golding5) 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.

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(2)

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 productson 6 April 2011 to protect the interest of people who buy policiesover phone or Internet. Identify the agency.a. SEBIb. IRDAc. TRAId. DoT2) In India’s first sale of rupee perpetual bonds by a non-financecompany Rs 1500 crore ($332 million) was raised. Name thenon-finance company.a. Tata Steelb. Pantallons Retailc. RILd. Maruti Suzuki3) Which of the following Indian cricket players took the highest number of wickets in the recently concluded ICC World Cup 2011along with Pakistan’s Shahid Afridi?a. Yuvraj Singhb. Zaheer Khanc. Munaf Pateld. Harbhajan Singh4) Union Sports Ministry on 6 April 2011 formed a committee to

fine-tune the draft National Sports Development Bill. Who is headingthe committee?

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a. Justice Mukul Mudgalb. Justice Tej Pratap Singh Mannc. Justice Gurdev Singhd. Justice Jaswant Singh Phogat5) Name the cricketer who beat Michael Clarke by a comfortable15-vote margin to bag the Allan Border Medal besides being namedAustralia’s ODI Player of the Year in Feb 2010?a. Shane Watsonb. Simon Katichc. Mitchell Johnsond. Sachin Tendulkar6) Record food grain production helped to reduce food inflation to afour month low for the week ending 26 March 2011. What was theinflation 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 ofwhich of the following governments on 4 April 2011?

a. Delhi Governmentb. Haryana Governmentc. Uttar Pradesh Governmentd. Uttarakhand Government8) The Union Government gifted a Kendriya Vidyalaya to anondescript village Indrapura to which of the following Indianstates?

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a. Biharb. Odishac. Rajasthand. Madhya Pradesh9) The Supreme Court on 5 April 2011 passed an order to lift ironexport ban imposed by which of the following Indian states on 26July 2010 and also ordered it to implement the new rules forregulating iron ore mining and transportation?a. Tamil Nadub. Andhra Pradeshc. Karnatakad. Odisha10) To enhance credit worthiness of economically weaker sectionsand LIG households, a Mortgage Risk Guarantee Fund wasannounced to be created under which of the following scheme orYojana?a. Rajiv Awas Yojanab. Rajiv Gandhi Grameen Vidyutikaran Yojana

c. Indira Awas Yojanad. Mahatama Gandhi NREGA11) Which agency issued guidelines on distance marketing ofproducts on 6 April 2011 to protect the interest of people who buypolicies over phone or Internet?a. SEBIb. IRDAc. TRAId. DoT

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12) Buyer's Credit was launched by the Commerce and IndustryMinister, Anand Sharma, on 6 April 2011 to boost project exportsfrom India. Under which of the following was Buyer’s Creditlaunched?a. National Export Insurance Accountb. Export-Import Bank of Indiac. Export Credit Guarantee Corporation of India

d. Reserve Bank of India13) Read the two statements mentioned with regard to thebudgetary allocations for addressing environmental concerns.1. The budget proposed that the solar lantern used in far-flungvillages 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 inthe year 2011 in collaboration with all stakeholders. Which of themis true?a. Only 1b. Only 2c. Both 1 & 2d. None of the above14) 21 year old Marjan Kalhor is the first Iranian woman to have

entered an Olympic event. She is a participant in the 2010 WinterOlympics that began in Vancouver on 12 Feb 2010. Which sport is

she associated with?a. Skib. Shot putc. Cycling

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d. Bobsleigh15) 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 ofthe 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 Teleservicesb. Tata Teleservicesc. Relianced. BSNL17) 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 Rs1.43crore?a. Maseratib. Bentleyc. Aston Martind. Maybach18) Who did HDFC Bank, the country's second-largest private

sector lender appoint in March 2011 to head its investment bankingdivision?

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a. Rakesh Singhb. Charul Madanc. Gaurav Khungard. Atul Singh19) Gangaur, a festival which marks the union of Lord Shiva and hisconsort, Goddess Parvati is celebrated for 18 days from the dayafter Holi in which of the following Indian states?a. Rajasthanb. Karnatakac. Tamil Nadud. Uttaranchal20) Read the following statements with regard to the allocation inthe 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 opticalfibers by March 2012.3. 500 crore rupees was proposed to be provided for national skilldevelopment fund.4. For the needy scheduled castes ad scheduled tribe candidatesstudying in class-IX and Xth prematric scholarship scheme wasproposed to be introduced. Which of the above mentionedstatements is not true?a. 1b. 2c. 3 & 4d. 4

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21) Scientists recently developed a computer that could becontrolled by the power of thought.It would help people unable to speak or move. What is the name ofthe technology which theyused to develop this kind of computer?a. electrocortiographyb. symbian C++c. javad. flash lite22) Which of the following companies bought the Pringles brandfrom Procter & Gamble Cofor $1.5 billion?a. Diamond Foods Incb. PepsiCo's Frito-Layc. Emerald Nutsd. Kettle Potato Chips23) Online marketplace eBay India, in association with leading

apparel brand Reebokauctioned a bat autographed by Indian cricketer Mahendra SinghDhoni. The proceeds of theauction will go to which of the following NGOs?a. Oxfemb. CRYc. All Bengal Women’s Uniond. UNEM24) Which Indian hockey player was in April 2011 named captain ofthe 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 Halappab. Rajpal Singhc. Bharat Kumar Chetrid. Mohd. Amir Khan25) Under the Godfrey Phillips Zonal Bravery Awards given away bythe former ruler ofJodhpur, Gaj Singh in Jaipur on 5 April 2011, which of the followingNGOs was honoured withthe Amodhini Award of Rs.1 lakh?a. Udyoginib. Charities Aid Foundationc. CRYd. Akhil Bharatiya Vanavasi Kalyan Ashram26) The Basic Customs Duty exemption was proposed to beextended to which of the followingsectors?a. art and antiquities for exhibition or display in private art galleriesb. Cinematographic film, factory-built ambulances

c. syringes and needlesd. agricultural machinery27) A massive Tsunami caused by a devastating earthquake of the8.9 magnitude hit about 400km north-east of Tokyo, capital of Japan. Where is the Pacific

Tsunami Warning Systemheadquartered?

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a. Hawaib. Tokyoc. Manilad. Jakarta28) Which of the following companies announced on 6 April 2011that it won contract toprovide broadband internet connectivity to Indian Railways throughstate-run RailTel Corp ofIndia Ltd?a. DELb. IBMc. Infosysd. HCL Infosystems29) Which super luxury carmaker on 7 April 2011 unveiled

Continental GT sedan in India?a. Ferratib. Bentleyc. Maybachd. Maserati30) What amount of money was allocated for Bharat Nirman?a. 1000 croreb. 58000 crorec. 55438 crored. 14362 crore31) Who defeated Tamarine Tanasugarn on 15 Feb 2010 to retainthe Pattaya Open title?a. Vera Zvonareva of Russia

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b. Sabine Lisicki of Germany,c. Ayumi Morita of Japand. Kimiko Date Krumm of Japan32) A massive Tsunami caused by a devastating earthquake of the8.9 magnitude hit about 400km north-east of Tokyo, capital of japan. What are the possiblefactors which can causeTsunami?i) An Earthquakeii) A landslideiii) A volcanic eruption or explosioniv) Impact by a meteoritePlease choose the right option

a. i, ii, iii and ivb. i and ii onlyc. ii and iii onlyd. i and iv only33) Which of the following Indian cricket is the most heavily insuredplayer for theforthcoming Indian Premier League (IPL) 4 T-20 tournament which

begins on 8 April 2011?a. Sachin Tendulkarb. Yuvraj Singhc. M S Dhonid. Virender Sehwag34) The Union Budget for 2011-12 proposed lowering of qualifyingage for tax relief for senior

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citizens from 65 years to _?a. 55b. 58c. 60d. 6235) Finance Minister Pranab Mukherjee proposed to increase theIncome Tax ExemptionLimit for individual tax payers from 1 lakh 60 to _?a. 1 lakh 80 thousandb. 1 lakh 90 thousandc. 2 lakhd. 2 lakh 20 thousand36) Noted Social worker Anna Hazare on 5 April 2011 started hishunger strike at JantarMantar in New Delhi to protest against the reported delay in bringingin which of the followingbills to effectively deal with corruption?a. Lokpal Billb. The Competition (Amendment) Billc. The Airports Economic Regulatory Authority of India Bill d. The Appropriation (No.3 ) Bill37) Who became the world number one badminton player?a. Saina Nehwalb. Wang Xinc. Sania Mirzad. Wang Shixian38) When is the National Youth Day observed?

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a. January 14b. February 14c. August 31d. January 1239) What is Tejas?a. Spacecraftb. Missilec. Submarined. Light combat aircraft40) Who is the Chairperson of the Central Board Film Certification?a. Sharmila Tagoreb. Karan Joharc. Nafisa Alid. Om Purie. None of these41) Ali Akbar Salehi is the foreign minister ofa. Israelb. Iranc. Afghanistand. Indonesia42) Who is the new chief of Research and Analysis Wing (RAW)?a. AP Singhb. Arun Shouriec. Sanjeev Tripathid. BK Gupta

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43) According to an extensive genetic study on modern humans,two conclusions were drawnout.i) There is an enormous amount of diversity in the Africanhunter-gatherer populations.ii) The genetic diversity among 27 present-day African populationsoriginated in southern Africa and progressed to northern Africa.Which of the above statements is/are correct?

a. Both i and iib. Neither I and iic. Only id. Only ii44) Which one of the following Indian states recently released aBraille version of the RTI(Right to Information) Act and its rules for the benefit of visuallychallenged?a. Gujaratb. Biharc. Haryanad. Madhya Pradesh45) Roger Federer won his fourth Australian Open Tennis

Championship and 16th GrandSlam on 31 Jan 2010. Who did he defeat in the final of theAustralian Open 2010?a. Rafael Nadalb. Andy Murrayc. Fred Perry

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d. Rod Laver46) Which of the following Bollywood Actress won the Best Actresstrophy at the 13th LondonAsian Film Festival for her performance in Onir’s I AM?a. Nandita Dasb. Juhi Chawlac. Tabud. Konkona Sen Sharma47) In tiger census 2010,i) Pugmarks were used as the only indicator of tiger numbers. ii) An advanced Scientific process was adopted which includedvideo trapping and use of satellite data. Which of the above

statements is/are incorrect?Choose the right option:a. Only i is incorrectb. Only ii is incorrectc. Both i and ii are incorrectd. Both i and ii are not incorrect48) India defeated Pakistan by 29 runs in the semi finals of the ICCWorld Cup 2011 played at Mohali. Who was declared man of thematch of the high powered game?a. Saeed Ajmalb. Sachin Tendulkarc. Munaf Pateld. Wahab Riaz49) 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 Ministry50) The Indian government in March 2011 conferred the Miniratnastatus on which of thefollowing PSUs?a. National Small Industries Corporation (NSIC)b. Air India Charters Ltdc. Cement Corporation of Indiad. HMT Machine Tools LtdAnswers:1) B 2) A 3) B 4) A 5) A 6) A 7) A 8) C 9) C 10) A11) B 12) A 13) B 14) A 15) A 16) A 17) C 18) A19) A 20) B 21) A 22) A 23) B 24) A 25) A 26) A27) A 28) D 29) B 30) B 31) A 32) A 33) C 34)C35) 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 MODELQUESTIONS

1.Michael D.Higgins replaced Mary McAleese as the President ofwhich of the following countries?1) Colombia2) Ireland3) Switzerland4) Zimbabwe5) SwedenAnswer: (2)

2.Who is the author of the book 'I was There-Memoirs of a Cricket Administrator'?1) Ajit Wadekar2)Chandu Borde3) Jaywant Lele4) Kirti Azad5) Sharad PawarAnswer: (3)

3.Devinder Pal Singh became the Chairman and Managing Director of which of the following banks in November 2011?1) BOB2) IOB3) OBC4) Punjab & Sind Bank

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5) Punjab National BankAnswer: (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) Manipur2) Nagaland3) Tripura4) West Bengal5) 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) Orissa2) Assam3) Bihar4) Jharkhand5) West BengalAnswer: (2)

6.Which city hosted the G20 Summit in November 2011?

1) Beijing2) Toronto3)Cannes4) London5) Seoul

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Answer: (3)

7.India signed an agreement to promote oil exploration in SouthChina Sea with which of the following countries during its PresidentTroung Tan Sang's visit to New Delhi in October 2011?1) Myanmar2) China3) Cambodia4) Vietnam5) ThailandAnswer: (4)

8.India's Polar Satellite Launch Vehicle(PSLV-C18)put VesselSat inorbit recently. Which country has built this satellite that will help inlocating ships?1) France2) Luxembourg3) USA4) Germany5) RussiaAnswer: (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 Indiaat 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 theprotection of the Prime Minister of India. Who was appointed thenew Director of the SPG in November 2011?1) B.V.Wanchoo2) K.Durga Prasad3) S.Subramaniam4) K.Aravind Rao5) None of theseAnswer: (2)

11.The President of Myanmar visited India recently. His name?1) U Thein Sein2) U Aye Myint3) Than Shwe4) U Thant5) None of theseAnswer: (1)

12.Which country will host the World Steel Conference in October2012?1) China2) India

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3) Japan4) USA5) AustraliaAnswer: (2)

13.The American computer scientist who created the Cprogramming language passed away recently. His name?1) Steve Jobs2) Dennis Ritchie3) Ken Thompson4) Patrick Fischer5) None of theseAnswer: (2)

14.Two former Presidents were awarded the 2011 World Food Prizefor their success in tackling chronic hunger in their countries. One isLuiz Inacio Lula da Silva (Brazil) and the other is John Ag-yekumKufuor. John Kufuor is the former President of which of the followingAfrican countries?

1) Sudan2) Angola3) Nigeria4) Ghana5) EthiopiaAnswer: (4)

15.Which team won the Durand Cup football tournament in October2011? (It is the oldest football tournament in India)1) Churchill Brothers

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2) Prayag United3) Mohun Bagan4) Chirag United Kerala5) None of theseAnswer: (1)

16.Indian-American Bobby Jindal has been re-elected to a secondterm as the Governor of which of the following states in the USA?1) Texas2) Louisiana3) Alaska4) California5) South CarolinaAnswer: (2)

17.World Diabetes Day is observed every year on which of the

following days?1) October 312) November 193) November 214) November 145) November 9Answer: (4)

18.Queen Elizabeth is the constitutional monarch of how manysovereign nations in the world?1) 92) 163) 25

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4) 85) 11Answer: (2)

19.Which country has test -fired nuclear capable Hatf-7 or Baburcruise missile with a range of 700 km?1) Afghanistan2) Pakistan3) Iran4) Syria5) IraqAnswer: (2)

20.In the October 2011 Tunisian Constituent Assembly election, thefirst elections since the Tuni-sian Revolution, which party won 91 ofthe 217 assembly sea-ts, far more than any other party?1) Ennahda2) PDP3) Ettakatol4) Al Aridha5) Congress for the RepublicAnswer: (1)

21.November 11 is celebrated as the National Education Day. Itcommemorates the birthday of which of the following eminentpersonalities?1) S.Radhakrishnan2) C.V.Raman3) B.C.Roy

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4) A.P.J Abdul Kalam5) Maulana Abul Kalam AzadAnswer: (5)

22.Which country has unveiled the world's biggest and heaviestgold coin, weighing 1,012 kilograms?1) USA2) UK3) Qatar4) Australia5) Saudi ArabiaAnswer: (4)

23.Which country has the world's largest uranium reserves (24% ofthe planet's known reserves)?1) Australia2) Russia3) Namibia4) Ukraine5) MongoliaAnswer: (1)

24.According to the latest Forbes India 100 richest persons list whois the world's richest Indian with a net worth of $ 22.60 billion?1) Mukesh Ambani2) Lakshmi Mittal3) Azim Premji4) Shashi Ruia & Ravi Ruia5) Savitri Jindal

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Answer: (1)

25.Whose autobiography is titled "A Shot at History"?1) Gagan Narang2) Abhinav Bindra3) Rahul Dravid4) Manavjit Singh Sandhu5) None of theseAnswer: (2)

26.Megha Tropiques, the satellite that studies the patterns anddynamics of the monsoon was launched from Sriharikota in October2011. It is a joint venture between India and which of the following

countries?1) Spain2) Greece3) France4) Portugal5) USAAnswer: (3)

27.Who was crowned the Miss World 2011 at the 61st edition of theMiss 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 theseAnswer: (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 Republic2) Russia3) USA4) Spain5) ItalyAnswer: (1)

29.Which of the following statements is not true with regard toCensus 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 whileSikkim is the least populated state (6.07 lakhs)4)India is now home to 17.5 percent of the world'spopulation-compared to China which hosts 19.4 percent.5)The literacy rate has increased from 64.83 percent in 2001 to70.04 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 Putin2) Dmitry Medvedev3) Mikhail Gorbachev4) Boris Yeltsin

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5) NoneAnswer: (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'sbanking system to negative from stable due to concerns that anincreasingly challenging operating environment will adversely affectasset 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 borrowingprogramme of the Indian Government, which could drain fundsaway 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 theasset quality will deteriorate over the next 12-18 months, therebycausing an increase in provisioning needs for the banks in FY2012and FY2013.Loan growth, a stress on banks' capitalThe 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 fallto 16-18 per cent in FY2012 and FY2013, from 21 per cent inFY2011Profitability to come under pressure

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When it comes to profitability, Moody’s expects it to come underpressure due to lower interest margins as deposit rates re-price andget a further push from the latest liberalisation on savings deposit rates.Bank ratings may come under downward pressure, althoughcurrently, 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 higherasset quality pressures, their standalone ratings are likely to comeunder pressure as underscored by Moody's downgrade of the StateBank 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 towardsproviding support to both public and 'private' banks. Such potentialsupport translates to an average one-notch uplift to the banks' debtand deposit ratings to ‘Baa2’, compared with their standalone baseline credit assessment of Baa3.Moody's rates 15 commercial banks in India, which togetheraccount for about 66 per cent of the banking system's total assetsas at March 2011.The banking system is dominated by public-sector banks, whichaccount 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’.

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280

Taxation system in India

India has a well-developed tax structure with clearly demarcatedauthority between Central and State Governments and local bodies.Central Government levies taxes on income (except tax onagricultural 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 onprofessions are levied by the State Governments. Local bodies areempowered to levy tax on properties, octroi and for utilities likewater supply, drainage etc.

In last 10-15 years, Indian taxation system has undergonetremendous reforms. The tax rates have been rationalized and taxlaws have been simplified resulting in better compliance, ease of tax

payment and better enforcement. The process of rationalization oftax administration is ongoing in India.

Since April 01, 2005, most of the State Governments in India havereplaced sales tax with VAT.

Taxes Levied by Central Government

Direct TaxesTax on Corporate Income

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Capital Gains TaxPersonal Income TaxTax IncentivesDouble Taxation Avoidance Treaty

Indirect TaxesExcise DutyCustoms DutyService TaxSecurities Transaction Tax

Taxes Levied by State Governments and Local BodiesSales Tax/VATOther Taxes

Direct Taxes

Taxes on Corporate Income

Companies residents in India are taxed on their worldwide incomearising from all sources in accordance with the provisions of theIncome Tax Act. Non-resident corporations are essentially taxed onthe income earned from a business connection in India or fromother Indian sources. A corporation is deemed to be resident in

India if it is incorporated in India or if it’s control and management issituated entirely in India.

Domestic corporations are subject to tax at a basic rate of 35% anda 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 aresubject to wealth tax at the rate of 1%, if the net wealth exceedsRs.1.5 mn ( appox. $ 33333).

Domestic corporations have to pay dividend distribution tax at therate 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 taxpayable 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 taxableincomeof Rs.1 crore or less to be removed.

A five year income tax holiday for two, three or four star hotels andfor convention centres with a seating capacity of not less than3,000; they should be completed and begin operations in NationalCapital Territory of Delhi or in the adjacent districts of Faridabad, Gurgaon, Ghaziabad or Gautam Budh Nagar during April 1, 2007 toMarch 31, 2010.

Concession under section 35(2AB) to be extended for five moreyears until March 31, 2012.

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Tax holiday to undertakings in Jammu & Kashmir to be extended foranother five years up to March 31, 2012.

Minimum Alternate Tax (MAT) to be extended to income in respectof which deduction is claimed under sections 10A and 10B; deduction under section 36(1) (viii) to be restricted to 20% of profitseach year.

Rate of dividend distribution tax to be raised from 12.5% to 15% on

dividends distributed by companies; and to 25% on dividends paidby money market mutual funds and liquid mutual funds to allinvestors.

Expenditure on free samples and on displays to be excluded fromthe scope of Fringe Benefit Tax (FBT); ESOPs to be brought underFBT.

An additional cess of 1% on all taxes to be levied to fund secondaryeducation 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 stockexchange in India, units of specified mutual funds, the period forholding 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 incometax rates. Short-term capital gains arising on the transfer of equityshares 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 maybe offset against taxable long-term capital gains and short-termcapital 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 isadministered 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 Nil1,00,000-1,50,000 101,50,000-2,50,000 202,50,000 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 beincreased by Rs.10,000 thus giving every assessee a relief ofRs.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 seniorcitizen from Rs.185,000 to Rs.195,000 giving him or her a relief ofRs.2,000; deduction in respect of medical insurance premium undersection 80D to be increased to a maximum of Rs.15,000 and, incase 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 incomeCompanies: 40% of the net income

The above rates are general and are applicable in respect ofcountries with which India does not have a Double TaxationAvoidance 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 specialeconomic 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 IndianFinancial System and focus on the financial markets, financialintermediaries and financial instruments. The brief review on variousmoney market instruments are also covered in this study.The term "finance" in our simple understanding it is perceived asequivalent to 'Money'. We read about Money and banking inEconomics, about Monetary Theory and Practice and about "PublicFinance". But finance exactly is not money, it is the source ofproviding funds for a particular activity. Thus public finance does notmean 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 sourceand 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 under-1:"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 agovernment or corporate body"4: "The supplying of funds or capital."Finance as a function (i.e. verb) is defined by the same dictionary as

under-1:"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 under-1:"the commercial activity of providing funds and capital"2: "the branch of economics that studies the management of moneyand other assets"3: "the management of money and credit and banking and

investments"The same dictionary also defines the term as a function in similarwords as under-1: "obtain or provide money for;" " Can we finance the addition toour home?"2:"sell or provide on credit "All definitions listed above refer to finance as a source of funding anactivity. In this respect providing or securing finance by itself is adistinct 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 tothe financial needs of a corporate body. When we study finance asa subject for generalising its profile and attributes, we distinguish

between 'personal finance" and "corporate finance" i.e. resourcesneeded personally by an individual for his family and individualneeds and resources needed by a business organization to carry onits 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 progressof the various economic units, broadly classified into corporatesector, government and household sector. While performing theiractivities these units will be placed in a surplus/deficit/balancedbudgetary situations.There are areas or people with surplus funds and there are thosewith a deficit. A financial system or financial sector functions as anintermediary and facilitates the flow of funds from the areas ofsurplus to the areas of deficit. A Financial System is a compositionof 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 ofcomplex and closely connected or interlined institutions, agents,practices, markets, transactions, claims, and liabilities in theeconomy. The financial system is concerned about money, creditand finance-the three terms are intimately related yet are somewhatdifferent from each other. Indian financial system consists offinancial market, financial instruments and financial intermediation.These are briefly discussed below;FINANCIAL MARKETSA Financial Market can be defined as the market in which financialassets are created or transferred. As against a real transaction that

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involves exchange of money for real goods or services, a financialtransaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to thepayment 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 inthis 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 marketwill be for periods over a year.Forex Market - The Forex market deals with the multicurrencyrequirements, which are met by the exchange of currencies.Depending on the exchange rate that is applicable, the transfer offunds takes place in this market. This is one of the most developedand integrated market across the globe.Credit Market - Credit market is a place where banks, FIs andNBFCs purvey short, medium and long-term loans to corporate andindividuals.

Constituents of a Financial System

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FINANCIAL INTERMEDIATIONHaving designed the instrument, the issuer should then ensure thatthese financial assets reach the ultimate investor in order to garnerthe 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 securityshould be passed on to take place. There should be a properchannel within the financial system to ensure such transfer. Toserve this purpose, Financial intermediaries came into existence.Financial intermediation in the organized sector is conducted by awiderange of institutions functioning under the overall surveillanceof the Reserve Bank of India. In the initial stages, the role of theintermediary was mostly related to ensure transfer of funds from thelender to the borrower. This service was offered by banks, FIs,brokers, and dealers. However, as the financial system widenedalong with the developments taking place in the financial markets,the scope of its operations also widened. Some of the importantintermediaries 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 bythem vary from one market to another.

Intermediary Market Role

Stock Exchange Capital Market Secondary Market to securitiesCorporate advisory

Investment Bankers Capital Market, Credit services, Issue ofMarket

securitiesSubscribe to

Underwriters Capital Market, Money unsubscribed portionMarket

of securitiesIssue securities to the

Registrars, investors on behalf ofDepositories, Capital Market the company andCustodians handle share transfer

activityPrimary DealersSatellite Dealers Money Market Market making in government securities

Forex Dealers Forex Market Ensure exchange inkcurrencies

FINANCIAL INSTRUMENTSMoney Market InstrumentsThe 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 nearsubstitutes to money is used to denote any financial asset whichcan be quickly converted into money with minimum transaction cost.

Some of the important money market instruments are brieflydiscussed below;

1. Call/Notice Money2. Treasury Bills3. Term Money4. Certificate of Deposit5. Commercial Papers1. Call /Notice-Money MarketCall/Notice money is the money borrowed or lent on demand for avery short period. When money is borrowed or lent for a day, it is

known as Call (Overnight) Money. Intervening holidays and/orSunday are excluded for this purpose. Thus money, borrowed on aday and repaid on the next working day, (irrespective of the numberof intervening holidays) is "Call Money". When money is borrowedor 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 isreferred to as the term money market. The entry restrictions are thesame as those for Call/Notice Money except that, as per existingregulations, the specified entities are not allowed to lend beyond 14days.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 apromise 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. lessthan one year). They are issued at a discount to the face value, andon maturity the face value is paid to the holder. The rate of discountand the corresponding issue price are determined at each auction.4. Certificate of DepositsCertificates of Deposit (CDs) is a negotiable money market instrument nd issued in dematerialised form or as a UsancePromissory Note, for funds deposited at a bank or other eligiblefinancial institution for a specified time period. Guidelines for issueof CDs are presently governed by various directives issued by theReserve Bank of India, as amended from time to time. CDs can beissued by (i) scheduled commercial banks excluding Regional RuralBanks (RRBs) and Local Area Banks (LABs); and (ii) select all-IndiaFinancial Institutions that have been permitted by RBI to raiseshort-term resources within the umbrella limit fixed by RBI. Bankshave 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 notexceed 100 per cent of its net owned funds, as per the latest audited balance sheet.5. Commercial PaperCP is a note in evidence of the debt obligation of the issuer. Onissuing commercial paper the debt obligation is transformed into aninstrument. 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 tangiblenet worth of the company, as per the latest audited balance sheet,is not less than Rs. 4 crore; (b) the working capital (fund-based) limitof the company from the banking system is not less than Rs.4 croreand (c) the borrowal account of the company is classified as aStandard Asset by the financing bank/s. The minimum maturityperiod of CP is 7 days. The minimum credit rating shall be P-2 ofCRISIL or such equivalent rating by other agencies. Capital Market InstrumentsThe capital market generally consists of the following long termperiod i.e., more than one year period, financial instruments; In the

equity segment Equity shares, preference shares, convertiblepreference shares, non-convertible preference shares etc and in the

debt segment debentures, zero coupon bonds, deep discount bonds

etc.Hybrid InstrumentsHybrid 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 independentregulators in the sectors of banking, insurance, capital markets, competition and various services sectors. In a number of sectorsGovernment plays the role of regulator.

Ministry of Finance, Government of India looks after financial sectorin India. Finance Ministry every year presents annual budget on

February 28 in the Parliament. The annual budget proposeschanges in taxes, changes in government policy in almost all the

sectors and budgetary and other allocations for all the Ministries ofGovernment 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, formulatesmonetary 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 ruralbanks. The commercial banking sector comprises of public sectorbanks, private banks and foreign banks. The public sector banks

comprise the ‘State Bank of India’ and its seven associate banksand nineteen other banks owned by the government and accountfor almost three fourth of the banking sector. The Government ofIndia 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 ininsurance. State level institutions comprise of State FinancialInstitutions and State Industrial Development Corporations providingproject finance, equipment leasing, corporate loans, short-termloans and bill discounting facilities to corporate. Government holdsmajority shares in these financial institutions.

Non-banking Financial Institutions provide loans and hire-purchasefinance, mostly for retail assets and are regulated by RBI.

Insurance sector in India has been traditionally dominated by stateowned Life Insurance Corporation and General InsuranceCorporation and its four subsidiaries. Government of India has nowallowed FDI in insurance sector up to 26%. Since then, a number of new joint venture private companies have entered into life andgeneral insurance sectors and their share in the insurance market inrising. Insurance Development and Regulatory Authority (IRDA) is

the regulatory authority in the insurance sector under the InsuranceDevelopment and Regulatory Authority Act, 1999.

RBI also regulates foreign exchange under the Foreign ExchangeManagement 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 oncapital account for resident Indians for incomes earned in India.

Securities and Exchange Board of India (SEBI) established underthe Securities and Exchange aboard of India Act, 1992 is theregulatory authority for capital markets in India. India has 23recognized stock exchanges that operate under governmentapproved rules, bylaws and regulations. These exchangesconstitute an organized market for securities issued by the central and state governments, public sector companies and public limitedcompanies. The Stock Exchange, Mumbai and National Stock

Exchange are the premier stock exchanges. Under the process ofde-mutualization, these stock exchanges have been converted intocompanies 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 stockmarkets.

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STOCK EXCHANGE, COMMODITY EXCHANGE RELATEDTERMS

Arbitration :-

Arbitration is an alternative dispute resolution mechanismprovided by a stock exchange for resolving disputes between thetrading members and their clients in respect of trades done on theexchange.

Barcode Labelling :-

A Barcode is a printed code that consists of a series of verticalbars, which vary in thickness. Barcodes are capable of being ‘read’and decoded by barcode scanners. They are used in variousindustries as application tools. They are used to identify retail salesitems, identification cards, library books and other products. Theyare 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 indicativesubscription bids of interested investors to a planned issue ofsecurities. The advantages of this technique of obtaining advancefeedback, 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 plusreserves and surplus minus accumulated losses divided by thenumber of shares outstanding as rendered in the latest annualreport of a company. The book value of an equity share tends toincrease as the ratio of reserves and surplus to the paid-up equitycapital increases.

Calendar Spread :-

This is done between futures contracts. The investor buys the

near month contract (ex. October gold) when prices rise or sell thepositions in the near months and purchase the forward monthscontracts. This trading is popular in gold, soya, silver, crude, chana,urad, jeera and chilli.

CDs :-A Certificate of Deposit (CD) is a negotiable promissory noteissued by the banks and the Financial Institutions (FIs) with a

maturity date of upto a year. It is secure in nature and issued at adiscount to the face value (the redemption to investors takes placeat the face value).

Collateralised Borrowings Lending Obligation (CBLO) :-

Collateralised Borrowings Lending Obligation (CBLO) is a

money market instrument for borrowing against the securities, heldin custody by the Clearing Corporation of India Limited (CCIL) forthe amount lent.

Commodity Exchange :-Like stock exchanges in capital markets, a commodityexchange is an association or a company or any other bodycorporate that is organising futures trading in commodities. The newgeneration National-level exchanges have been set up in a

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corporatised/demutualised environment. There are three nationallyrecognised commodity exchanges in India and 22 regionalexchanges. The National exchanges are Multi CommoditiesExchange of India (MCX) in Mumbai, National Commodities and

Derivatives Exchange of India (NCDEX) and National MultiCommodities Exchange (NMCE).

Commodity:A commodity is a product having commercial value that can beproduced, bought, sold and consumed. It is normally in a basic rawunprocessed 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, commodityexchanges 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 linemodes operated by members or sub-brokers spread around

country.Demutualisation :-

It essentially means segregating the trading rights to memberbrokers from the ownership and management of the exchanges. Itaims at curbing the clout of member-brokers in running theexchanges.

Due Diligence :-

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An internal audit of a target firm by an acquiring firm. Offers areoften made contingent upon resolution of the due dilengenceprocess.

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 demandfor a currency is greater (lesser) than its supply, its price will rise (fall).

What makes currency rates move ?The exchange rate reflects the strength of an economy in termsof its growth performance, balance of payments etc. as well aseconomic expectations that drive the ‘market sentiment’ and howmuch the market has reacted or ‘discounted’ the anticipatedinformation.

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 aneconomy’s macroeconomic performance, then Central banksintervene to depreciate (or appreciate) their currency. Exchangerates also move on expectations of change in regulations relating toexchange markets and official intervention. In India, the ReserveBank’s basic philosophy is a flexible one, without any particular‘target’ for the rupee’s rate. With a broad objective to avoidexcessive volatility, facilitate growth of Indian exports and generateconfidence among overseas investors.

Futures contract :-

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Futures contract is an agreement between two parties to buy orsell a specified quantity and defined quality of a commodity at acertain time in future at a price agreed upon at the time of enteringinto the contract. This is typically traded at regulated commodityexchanges.

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 certainprice. It has a standardised date and month of delivery, quantity andprice.An option gives the buyer the right but not the obligation to buy theunderlying asset. A futures contract on the other hand is obligatoryon both the buyer and the seller is a transaction between the buyerand 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 andcommodities.

Geographic Information Systems (GIS) :-

The GIS are computer systems used to store and processgeographic data. The GIS scores over other data managementsystems in its ability to present spatial relationships in a digital mapform that is easy to visualise and understand. Data is the centralresource of a GIS system. The GIS systems process two kinds of data-spatial and attribute. Spatial data gives the geographic locationof a point of interest (e.g. railway station, school, bank branch, the

ATM etc). Attribute data contains other characteristics of that pointof 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 ratedifferential disappears.

Independent Director :-

An independent Director is a non-executive Director on theboard of a company who has integrity, expertise and independenceto balance the interests of the various stakeholders. The idea ofhaving them is to bring objectivity to the board decisions and to

protect general interests of the company, including that of theminority and the small shareholders. The independent Directors areexpected 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 withthe company or its arms, other than receiving the Director’sremuneration, is a disqualification. The independent Director must not be related to the promoters or anyone in the seniormanagement position from one level below the board. He shouldnot 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 revisedClause 49 ?The Clause will apply to the listed entities which are notcompanies but body corporates such as the private and the PSUbanks, 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 aresimilar.

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 fixedrate 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’ (Islamicrules on transaction). The Islamic law prohibits interest on both theloans and the deposits. Interest is also called ‘riba’ in Islamicdiscourse. The argument against interest is that money is not goodand profit should be earned on goods and services only and not oncontrol 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. Investmentfinance is also offered through ‘Mudabha’, where the bankscontribute the finance and the client provides the expertise, management and labour and the profits are shared in apre-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, Europeto Asia and Australia and are regulated even within the conventionalbanking system.

Kaizen :-Kaizen comes from two words : Kai, which means ‘to change’

and zen, which means ‘good or for the better’. Together, the wordsmean continuous change for the better. It is not just a philosophy ofthe workplace, it also means continuously improving in every facetof life, including business, industry, commerce Government anddiplomacy, among others. In full implementation, it becomes thefoundation of all activities. Kaizen requires everyone in theorganisation 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 shareholdersof the target company containing disclosures of theacquirer/Persons Acting in Concert (PACs), target company, their

financials, justification of the offer price, the offer price, number ofshares to be acquired from the public, purpose of acquisition, futureplans of acquirer, if any, regarding the target company, change incontrol over the target company, if any, the procedure to be followed

by acquirer in accepting the shares tendered by the shareholdersand the period within which all the formalities pertaining to the offerwill 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 andacquisitions.

Mid-cap stock :-

The name 'mid-cap' originates from the term mediumcapitalised. It is based on the market capitalisation of the stock. TheNational Stock Exchange (NSE) defines the mid-cap as stockswhose average six months' market capitalisation is between Rs.75crore and Rs.750 crore. In the US, the midcap shares are thosestocks that have a market capitalisation ranging from Rs.9,000 croreto Rs.45,000 crore. In India, these shares are classified aslarge-cap shares.

MIFOR :-MIFOR is an interest rate derivative, which is calculated byadding dollar London Interbank Offered Rate (LIBOR) rates with therupee-dollar forward premia. The MIFOR rate is hence, the

borrowing cost from overseas. It is utilised to hedge against themovement of global interest rates. LIBOR is the term moneybenchmark for the Euro-dollar market.

Net worth :-Net worth is the difference between the total assets and totalliabilities.

Participatory Notes (PNs) :-Participatory Notes (PNs) are a derivative instrument issued bythe 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 intocriminal law.

Penny Stocks :-

Penny stocks is a term used to define cheaply available stocksof typically loss-making companies. Penny stock is used in thecontext of general equities. The stocks that typically sell for lessthan $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 forfree, to their computers and portable devices.

Profit Booking :-Selling shares when their prices have risen above theirpurchase price.

Profit taking :-Selling commodities, securities etc. at a profit, either after amarket 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 civilor administrative law.

The Cash and Carry Arbitrage :-

This is the easiest form of arbitrage, where the investor has tobuy 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 alsopopular among various agricultural commodities.

The Price Earning ratio (P/E ratio) :-The P/E ratio is the ratio between the Market Price of theShare (MPS) and the Earning Per Share (EPS). This ratio tells ushow many times the market price of the shares is vis-à-vis itsearning per share.

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IBPS CLERKS EXAM GENERAL STUDIES PRACTICEQUESTIONS

1. We read in the newspapers about the deregulation of the pricingof petroleum products by the Government of India. Consider thefollowing 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 Ab. Only Bc. Only B and Cd. Only A and Ce. None of these

2. Which of the following committees has given its

recommendations on "Financial inclusion"?a. Vaghul Committeeb. Raghuram Rajan Committeec. Rakesh Mohan Committeed. Kelkar Committeee. None of these

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3. The agricultural census is done at which of the following

intervals?a. There is no fixed termb. Every yearc. Once in 3 yearsd. Once in 10 yearse. 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 theGovernment of India?a. Kisan Mitrab. Khadya Surakshac. Garibi Hataod. Jan Shaktie. None of these

5. The high rate growth of economy certainly reducesa. Gender inequalitiesb. Povertyc. Population of a countyd. Flow of foreign investmente. None of these6. 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 peopleb. Maximise total profits

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c. Maximise total productiond. Provide financial services to the people across the countrye. 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 onlyb. Liquidity in economyc. Borrowing powers of the banksd. Flow of foreign direct investmente. 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 marketd. It is the rate which is offered by banks to their most valued

customers or prime customerse. None of these

9. In a company, the use of price-sensitive corporate information bythe company people to make gains or cover losses is known asa. Insider tradingb. Future tradingc. Foreign tradingd. Stock tradinge. None of these

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10. As per the instructions of the RBI, banks are required to givewhat percentage of their priority sector lending to weaker sections ofthe society?a.15%b.25% .c. 30%d. 35%e. 40%11. The process of the total valuation of the financial assets of acompany is technically known as ' :a. Market capitalizationb. Gross Domestic Productc. Net wealth of the countryd. Gross Domestic Resourcese. None of these

12. Many a time, we read about rural indebtedness in variousnewspapers and magazines. What are the main causes of the rural indebtedness?A PovertyB. Inability to repay loans

C. Zamindari System, which prevented farmers from owning thelanda. Only Ab. Only B

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c. Both A and Bd. Only Ce. All of these

13. Very often we read about Special Economic Zones (SEZs) innewspapers. What is the purpose of promoting SEZs in India?A. They are established to promote exports.B. They are established to attract investments from foreigncountries.C They are established to help the poorest of the poor in India asthe activities of these zones are reserved only for the poor andthose living below the poverty line.a. Only Ab. Only Bc. Only Cd. Only A and Be. None of these

14. Which of the following is the percentage up to which FDI indefence 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 theGovernment of India comes froma. Income Taxb. Customs Dutyc. Excise Dutyd. Value Added Taxe. Corporate Tax

16. Which public sector bank celebrated its Platinum Jubilee in late2010?a. Dena Bankb. Bank of Maharashtrac. Bank of Barodad. Canara Banke. None of these

17. Which of the following is not among the six infrastructureindustries that comprise the "Core Sector"?a. Crude oilb. Petroleum refinery productsc. Chemicals and fertilizersd. Coale. All the above

18. Who among the following will the chairperson of the committeeset up by the RBI on "Customer Services in Banks"?a. YV Reddy

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b. Deepak Prakashc. M Damodarand. Subbaraoe. None of these

19. Which of the following is the full form of 'BRA" as used inbanking industry?a. Brazilian and Russian Associationb. Banking Restructuring Actc. Borrowing Risk Assessmentd. Banking Regulation Acte. None of these

20. The Securities and Exchange Board of India has decided toallow _____ to visit SEBI Bhavan to help them learn about thecapital market regulator. .a. Studentsb. Foreign investorsc. Tourists d. Pressd. Presse. None of these21. Which state government has announced to undertake a detailedcensus of cancer patients in the state?a. Delhib. Haryanac. Punjabd. Orissa

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e. None of these

22. The Central Government has revised wages of agriculturallabourers under the Mahatma Gandhi National Rural Employment.The basic wage is revised once ina. 2 Yearsb. 3 Yearsc. 4 Yearsd. 5 Yearse. None of these

23. Which of the following cannot be called a Debt Instrument as

referred in financial transactions?a. Certificate of Depositsb. Bondsc. Stocksd. Commercial Paperse. Loans

24. Which of the following correctly describes sub-prime lending?A. Lending to people with less than ideal credit statusB. Lending to people who are valued customers of the banksC. Lending to those who are not regular customers of a banka. Only Ab. Only Bc. Only Cd. 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 Lockersb. Merchant Banking Servicesc. Credit cardsd. Discount earned on certain discounted billse. None of these

26. For the revival of which of the following fertilizer units of theFertilizer Corporation of India has the Steel Authority of IndiaLimited been the given the go-ahead by the Cabinet Committee onEconomic Affairs (CCEA) recently?a. Burnpurb. Sindric. Rourkelad. Bhilaie. None of these

27. According to the latest figures released by the CommerceMinistry. What Is the percentage growth of India's exports durina2010 -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 theDepartment of Telecom has permitted Imposition of a uniformlicence 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 tocreate regulations for alternative investment funds under the title'SEBI (Alternative Investment Fund) Regulations'. With regard tothis proposal, which of the following is/are not true?a. SEBI made it optional for all types of private pools of capital orinvestment 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 investmentwould, have to be in equity of infrastructure projects/companies.d. Only 1 and 2e. None of these

30. Name the sports channel that has acquired the exclusivebroadcast 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. ESPNb. DD Sportsc. Neo Sportsd. Ten Sportse. 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. Marsb. Jupiterc. Mercuryd. Venuse. None of these

32. Italy approved a draft law banning women from wearing veils inpublic. Besides Italy which of the following nations have bannedwomen from wearing veil in public?a. India and Pakistanb. China and Afghanistanc. Belgium and Franced. Bangladesh and Bhutane. None of these

33. The Prime Ministers Economic Advisory Council headed by C

Rangarajan has submitted its report on economy-"The EconomicOutlook and the Review". Who among the following is not a

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member of it?a. Suman K Beryb. Dr Sumitra Chaudharyc. M Govinda Raod. BB Bhattacharyae. Dr KP Krishnan

34. Which of the following departments of the Government of India

has initiated the Public Bicycle Scheme for 10 cities under theMission for Sustainable Habitat?a. Rural Development Ministryb. Urban Development Ministryc. Environment Ministryd. Surface Transport Ministrye. None of these

35. After allegations of bio-piracy complaints against US based

multinational Monsanto with regard to Bt brinjal, for the hybridresearch of which of the folio wing vegetable products is the

National Biodiversity Authority of India (NBA) processingMonsanto's application?a. Cauliflowerb. Bittergourdc. Cabbaged. Potatoe. Onion

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36. Consider the following negative impacts on the Indian economyin the context of the ongoing US debt crisis:A. Adverse impact on Indian exportsB. RBI will be forced to cut down interest ratesC. FDI flow will slow down.a. Only Ab. Only A and Bc. Only A and Cd. All A, B and Ce. None of the above

37. Name the Indian executive in the global credit rating agencyStandard and Poor's under whose leadership the decision of thehistoric credit downgrade of the United States was taken and laterhe was forced to step down.a. Sanjay Sainib. Karan Bhagatc. Rajat Guptad. Devesh Sharmae. None of these

38. Who has written the book The Financial inclusion: Imperativeand Sustainable Approaches?'a. Deepali Pant Joshib. C Rangarajanc. M Damodarand. Amartya Sen.

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e. None of these

39. Who is the author of the book Last Man In Tower?a. Jhumpa Lahirib. Samit Basuc. Aravind Adigad. Amit Chaudharye. None of these

40. Goldman Sachs; citing improvement in macroeconomicsituation, has recently upgraded India's rating from 'underweight' toa. Overweightb. Market weightc. In-lined. Underperformere. Market outperformer41. In which of the following states did the Sadar Hills District hoodDemand Committee (SHDDC) recently impose an economicblockade in pursuance of their demand for a separate district?a. Manipurb. Meghalayac. Tripurad. Assame. 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 Limitedc. Power Finance Corporationd. Hindustan Coppere. 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 croreb. Rs. 50,000 crorec. Rs. 70,000 crored. Rs. 90,000 croree. None of these

44. In which of the following Western countries did large scalerioting take place in predominantly African and Caribbeanneighbourhoods recently?a. Franceb. Germanyc. Italyd. Englande. None of these

45. PC Alexander, who died recently, was a veterana. Bureaucratb. Nuclear scientist

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c. Educationistd. Environmentaliste. None of these

46. Who is the chairman of the National Commission forScheduled Castes?a. Justice KG Balakrishnanb. Wajahat Habibullahc. Justice MN Raod. PL Puniae. None of these

47. Justice Soumitra Sen, against whom impeachment proceedingshave been initiated in the Parliament, is the judge ofa. Sikkim High Courtb. Kamataka High Courtc. Calcutta High Courtd. Guwahati High Courte. None of these

48. Name the chief of the three-member interlocution team onKashmir which is to submit its report to the government shortly.a. NM Ansarib. Rdha Kumarc. Dileep Padgaonkard. Karan Singhe. None of these

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49. Who is the author of the book Through the Corridors of Power:Insider Story?a. HNHaksarb. Brijesh Mishrac..CP Bhambhrid. Kuldip Nayare. PC Alexander

50 Which of the following states provides the VishwakarmaContributory Pension Scheme to the labourers of 20 trades of theunorganized sector?a. Uttar Pradeshb. Punjabc. Madhya Pradeshd. Bihare..Rajasthan

ANSWERS:

1. b 2. b 3. e 4. a 5. b 6. d 7. b 8. b 9. a 10.a11. a 12. e 13. d 14. a 15. c 16. b 17. c 18. c 19. d 20.a21. 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.b41. 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 forAll—released by the United Nations Development Programme(UNDP) on November 2, 2011, notes that Norway, Australia and theNetherlands lead the world in the 2011 Human Development Index

(HDI), while the Democratic Republic of the Congo, Niger andBurundi are at the bottom of the Human Development Report’sannual rankings of national achievement in health, education andincome.

The United States, New Zealand, Canada, Ireland, Liechtenstein,Germany and Sweden round out the top 10 countries in the 2011HDI, but when the Index is adjusted for internal inequalities inhealth, education and income, some of the wealthiest nations dropout of the HDI’s top 20: the United States falls from #4 to #23, theRepublic of Korea from #15 to #32, and Israel from #17 to #25.

Gender Inequality Index ranks India at 129 and Inequality AdjustedHDI rank is 93.

The 2011 HDI covers a record 187 countries and territories, up from169 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 worsenedin most of the world, with Latin America remaining the most unequalregion 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 SirAnthony Barnes Atkinson.

Average HDI levels have risen greatly since 1970—41 percentglobally and 61 percent in today’s low-HDI countries—reflectingmajor 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 insub-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 ofreproductive health, years of schooling, parliamentary

representation, and participation in the labour market. Sweden isfollowed 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 Republicand Sierra Leone.

The Multi-dimensional Poverty Index (MPI) examines factors at thefamily 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 ofpoverty 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, oralmost a third of the countries’ entire combined population of 5.5billion. That compares to the 1.3 billion people estimated to live onUS$1.25 a day or less, the measure used in the UN MillenniumDevelopment Goals, which seeks to eradicate “extreme” poverty by

2015.

Niger has the highest share of multi-dimensionally poor, at 92percent of the population, followed by Ethiopia and Mali, with 89percent and 87 percent, respectively. The 10 poorest nations asmeasured by the MPI are all in sub-Saharan Africa. But the largestgroup of multi-dimensionally poor is South Asian: India, Pakistanand Bangladesh have some of the highest absolute numbers of MPIpoor.

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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’spopulation, and larger than the total number of people measuredaccording to the same criteria in all sub-Saharan countries.

The MPI also provides insight into environmental problems in thepoorest households, including indoor air pollution and disease from

contaminated water supplies. The Report notes that in South Asiaand sub-Saharan Africa, more than 90 percent of the

multi-dimensionally poor cannot afford clean cooking fuel, relyingprincipally on firewood, while some 85 percent lack basic sanitation

services.

The 2011 Human Development Report offers important newcontributions to the global dialogue on this challenge, showing howsustainability is inextricably linked to basic questions of equity—thatis, of fairness and social justice and of greater access to a betterquality of life. Sustainability is not exclusively or even primarily anenvironmental issue, as the Report so persuasively argues. It isfundamentally about how we choose to live our lives, with anawareness that everything we do has consequences for the 7 billionof us here today, as well as for the billions more who will follow, forcenturies to come.

Understanding the links between environmental sustainability andequity is critical if we are to expand human freedoms for current and

future generations. The remarkable progress in human developmentover recent decades, which the global Human DevelopmentReports 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 theinternational community to promote environmental sustainability and

equity in mutually reinforcing ways.

In the 176 countries and territories where the United NationsDevelopment Programme is working every day, manydisadvantaged people carry a double burden of deprivation. Theyare more vulnerable to the wider effects of environmentaldegradation, because of more severe stresses and fewer copingtools. They must also deal with threats to their immediateenvironment from indoor air pollution, dirty water and unimprovedsanitation. Forecasts suggest that continuing failure to reduce thegrave environmental risks and deepening social inequalitiesthreatens to slow decades of sustained progress by the world’s poormajority—and even to reverse the global convergence in humandevelopment.

Major disparities in power shape these patterns. New analysisshows how power imbalances and gender inequalities at thenational level are linked to reduced access to clean water andimproved sanitation, land degradation and deaths due to indoor andoutdoor air pollution, amplifying the effects associated with incomedisparities. Gender inequalities also interact with environmentaloutcomes and make them worse. At the global level governance

arrangements often weaken the voices of developing countries andexclude 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 abetter life in broader human development terms. Investments that improve equity—in access, for example, to renewable energy, waterand sanitation, and reproductive healthcare—could advance bothsustainability and human development. Stronger accountability and

democratic processes, in part through support for an active civil society and media, can also improve outcomes. Successfulapproaches rely on community management, inclusive institutionsthat pay particular attention to disadvantaged groups, andcross-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 thancurrent official development assistance. Today’s spending onlow-carbon energy sources, for example, is only 1.6 percent of eventhe lowest estimate of need, while spending on climate changeadaptation 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 leveragedby proactive public investment. Beyond raising new sources offunds to address pressing environmental threats equitably, theReport advocates reforms that promote equity and voice. Financing

flows need to be channelled towards the critical challenges ofun-sustainability and inequity— and not exacerbate existingdisparities.

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 andglobally—and this can and should be done in ways that areequitable and empowering, says the Report.

The environmental disaster scenario leads to a turning point before2050 in developing countries—their convergence with rich countriesin HDI achievements begins to reverse. These projections suggest that in many cases the most disadvantaged people bear and willcontinue to bear the repercussions of environmental deterioration,even if they contribute little to the problem. For example, low HDIcountries have contributed the least to global climate change, butthey have experienced the greatest loss in rainfall and the greatestincrease in its variability, with implications for agricultural productionand livelihoods.

Around the world rising HDI has been associated withenvironmental degradation. Countries with faster improvements inthe HDI have also experienced faster increases in carbon dioxideemissions per capita. These changes over time—rather than thesnapshot relationship—highlight what to expect tomorrow as aresult of development today.

On the other hand, while incomes and economic growth have animportant explanatory role for emissions, the relationship is notdeterministic. 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 differentimpacts than subsistence exploitation; and urban and rural

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environmental profiles differ.

Several countries have achieved significant progress both in theHDI and in equity and environmental sustainability. Sweden isnotable for its high reforestation rate compared with regional and

global averages.

More generally, however, environmental trends over recent decadesshow deterioration on several fronts, with adverse repercussions for

human development, especially for the millions of people whodepend 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, withestimated yield loss as high as 50 percent in the most adversescenarios. Agriculture accounts for 70–85 percent of water use, andan estimated 20 percent of global grain production uses waterun-sustainably, imperilling future agricultural growth.

Deforestation is a major challenge. Between 1990 and 2010, LatinAmerica and the Caribbean and Sub-Saharan Africa experiencedthe greatest forest losses, followed by the Arab States. The otherregions have seen minor gains in forest cover. Desertificationthreatens the dry-lands that are home to about a third of the world’s

people. Some areas are particularly vulnerable—notablySub-Saharan Africa, where the dry-lands are highly sensitive andadaptive capacity is low.

Adverse environmental factors are expected to boost world foodprices 30–50 percent in real terms in the coming decades and to

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increase price volatility, with harsh repercussions for poorhouseholds. The largest risks are faced by the 1.3 billion peopleinvolved in agriculture, fishing, forestry, hunting and gathering.

To the extent that women in poor countries are disproportionatelyinvolved in subsistence farming and water collection, they facegreater adverse consequences of environmental degradation. Manyindigenous peoples also rely heavily on natural resources and live inecosystems especially vulnerable to the effects of climate change, such as small, island developing States, arctic regions and highaltitudes.

Evidence suggests that traditional practices can protect naturalresources, yet such knowledge is often overlooked or downplayed. The effects of climate change on farmers’ livelihoods depend on thecrop, region and season, underlining the importance of in-depth, local analysis. Impacts will also differ depending on householdproduction and consumption patterns, access to resources, povertylevels and ability to cope. Taken together, however, the netbiophysical impacts of climate change on irrigated and rain-fedcrops by 2050 will likely be negative—and worst in low HDIcountries.

The MPI measures serious deficits in health, education and living

standards, looking at both the number of deprived people and theintensity of their deprivations. This year the report explores thepervasiveness of environmental deprivations among themulti-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 environmentaldeprivations in access to modern cooking fuel, clean water andbasic 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 ofthese environmental deprivations, and 4 in 10 experience two ormore. These deprivations are especially acute amongmulti-dimensionally poor people, more than 9 in 10 of whomexperience at least one. Most suffer overlapping deprivations: 8 in

10 multi-dimensionally poor people have two or more, and nearly 1in 3 (29 percent) is deprived in all three. These environmentaldeprivations disproportionately contribute to multi-dimensional poverty, accounting for 20 percent of the MPI—above their 17percent weight in the index. Across most developing countriesdeprivations are highest in access to cooking fuel, though lack ofwater is paramount in several Arab States.

Countries with the lowest share of poor people facing at least onedeprivation are mainly in the Arab States and Latin American andthe Caribbean (7 of the top 10). Of the countries with the fewestmulti-dimensionally poor people with all three environmentaldeprivations, better performers are concentrated in South Asia—5of the top 10. Several South Asian countries have reduced some

environmental deprivations, notably access to potable water, evenas other deprivations have remained severe. And five countries are

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in both top 10 lists—not only is their environmental poverty relativelylow, 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 poorcountries, especially for deprived groups. Indoor air pollution kills 11times more people living in low HDI countries than people

elsewhere. Disadvantaged groups in low, medium and high HDIcountries face greater risk from outdoor air pollution because of both higher exposure and greater vulnerability. In low HDI countriesmore than 6 people in 10 lack ready access to improved water,while nearly 4 in 10 lack sanitary toilets, contributing to both diseaseand malnourishment. Climate change threatens to worsen thesedisparities through the spread of tropical diseases such as malariaand dengue fever and through declining crop yields.

Despite near universal primary school enrolment in many parts ofthe world, gaps remain. Nearly 3 in 10 children of primary schoolage in low HDI countries are not even enrolled in primary school,and multiple constraints, some environmental, persist even forenrolled 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 shownto 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 cleanwater 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 naturalresources: people have to work more to achieve the same returnsor may even have to migrate to escape environmental degradation.

Environmental stress has also been linked to an increasedlikelihood of conflict. The link is not direct, however, and isinfluenced by the broader political economy and contextual factorsthat make individuals, communities and society vulnerable to the

effects of environmental degradation.

The Gender Inequality Index (GII), updated this year for 145countries, shows how reproductive health constraints contribute to

gender inequality. This is important because in countries whereeffective control of reproduction is universal, women have fewerchildren, with attendant gains for maternal and child health andreduced greenhouse gas emissions. For instance, in Cuba,Mauritius, Thailand and Tunisia, where reproductive healthcare andcontraceptives are readily available, fertility rates are below twobirths per woman. But substantial unmet need persists worldwide,and evidence suggests that if all women could exercise reproductivechoice, population growth would slow enough to bring greenhousegas emissions below current levels.

Meeting unmet need for family planning by 2050 would lower theworld’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 politicaldecision-making, highlighting that women lag behind men acrossthe world, especially in Sub-Saharan Africa, South Asia and theArab States. This has important implications for sustainability andequity. Because women often shoulder the heaviest burden ofresource collection and are the most exposed to indoor air pollution,they are often more affected than men by decisions related tonatural resources. Recent studies reveal that not only is women’sparticipation important but also how they participate—and howmuch.

And because women often show more concern for the environment,support pro-environmental policies and vote for pro-environmentalleaders, their greater involvement in politics and innon-governmental organizations could result in environmentalgains, with multiplier effects across all the Millennium DevelopmentGoals.

These arguments are not new, but they reaffirm the value ofexpanding women’s effective freedoms. Thus, women’sparticipation in decision-making has both intrinsic value andinstrumental importance in addressing equity and environmental degradation.

Evidence is accumulating that power inequalities, mediated through

political institutions, affect environmental outcomes in a range ofcountries and contexts. This means that poor people and other

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disadvantaged groups disproportionately suffer the effects ofenvironmental degradation. New analysis for the Report coveringsome 100 countries confirms that greater equity in powerdistribution, broadly defined, is positively associated with better environmental outcomes, including better access to water, less landdegradation and fewer deaths due to indoor and outdoor airpollution and dirty water—suggesting an important scope forpositive synergies.

The large disparities across people, groups and countries that add

to the large and growing environmental threats pose massive policychallenges. But there is cause for optimism. In many respects the

conditions today are more conducive to progress than ever—giveninnovative policies and initiatives in some parts of the world. Takingthe debate further entails bold thinking, especially on the eve of theUN Conference on Sustainable Development (Rio+20) and thedawn of the post-2015 era. The Report advances a new vision forpromoting human development through the joint lens ofsustainability and equity.

A key theme of the Report is the need to fully integrate equityconcerns into policies that affect the environment. Traditionalmethods of assessing environmental policies fall short. They mightexpose the impacts on the path of future emissions, for example,but they are often silent on distributive issues. Even when theeffects on different groups are considered, attention is typicallyrestricted to people’s incomes. The importance of equity andinclusion is already explicit in the objectives of green economypolicies. The report proposes taking the agenda further.

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Embedding environmental rights in national constitutions andlegislation 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 explicitenvironmental rights interpret general constitutional provisions forindividual rights to include a fundamental right to a healthyenvironment.

Constitutionally recognizing equal rights to a healthy environmentpromotes equity by no longer limiting access to those who canafford it. And embodying this right in the legal framework can affectgovernment priorities and resource allocations.

Alongside legal recognition of equal rights to a healthy, wellfunctioning environment is the need for enabling institutions,including a fair and independent judiciary, and the right toinformation from governments and corporations. The internationalcommunity, 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 alsoengenders 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 oftools to take this agenda forward:

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• Low-emission, climate-resilient strategies—to align humandevelopment, equity and climate change goals.• Public-private partnerships—to catalyse capital from businesses

and households.• Climate deal-flow facilities—to bring about equitable access tointernational public finance.• Coordinated implementation and monitoring, reporting andverification systems—to bring about long-term, efficient results andaccountability to local populations as well as partners.

Finally, it calls for a high-profile, global Universal Energy AccessInitiative with advocacy and awareness and dedicated support todeveloping clean energy at the country level. Such an initiativecould kick-start efforts to shift from incremental to transformativechange.

The Report casts light on the links between sustainability and equityand shows how human development can become more sustainableand more equitable. It reveals how environmental degradation hurtspoor 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 fullform 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 theseAns : (C)

2. As per reports published in various news papers, mutual fundcompanies showed 94 per cent growth in their total profits during2009-10. This means the profits earned by these companies were94 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 theseAns : (B)

3. As per the news published in various news papers Pakistan has

imposed 15 per cent regulatory duty on exports of cotton yarn. Whycountries are required to impose regulatory duties on exports ofsome of their commodities while in the eyes of the layman moreexports means more foreign exchange and more revenue for theGovt. ?1. It is done to control the exports of a commodity as it may beneeded more in local markets than in foreign countries.2. It is done to control the general inflation in the country as theinordinate exports of various commodities create imbalance and

also cost push inflation.3. It is a good short time measure to collect more revenue from theexports of the commodity which is in high demand in overseasmarkets.(A) Only 1(B) Only 2(C) Only 3(D) All 1, 2 and 3(E) None of theseAns : (A)

4. As per the reports published in some major news papers 'ADAGcompanies' 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 theseAns : (C)

5. ONGC – Mittal Energy finds hydrocarbons in two blocks OPL-279

& OPL-285 in Nigerian sea was the news in some major newspapers. what is the full form of the term OPL as used in the abovehead line ?(A) Oil Prospecting License(B) Ownership and Partnership Lease(C) Overseas Private Line(D) ONGC Petroleum Ltd.(E) None of theseAns : (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 frommany investors and invest it in stocks, bonds or other money market instruments.2. It is a subsidiary of a bank or financial company created speciallyto ralse money to be invested in a particular industry i.e. housing orinsurance etc. The money raised thus cannot be invested anywhereelse.3. When several banks and financial companies come together andcreate 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 theseAns : (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 lowerthan the Bank Rate(B) Bank should give loan to their priority sectorcustomers/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 financialinclusion and inclusive banking operations(D) Banks will be required to give 6% of their total deposits to theGovt. of India for meeting its Balance of Trade requirements

(E) None of theseAns : (A)

8. As per the reports in various news papers many privatecompanies are trying to obtain the licences to launch a banking

company in India. Which of the following organizations/agenciesissue the licence for the same ?(A) Securities & Exchange Board of India (SEBI)(B) Indian Institute of Banking & Finance (IIBF)

348

(C) Indian Bank Association(D) Registrar of Companies

(E) None of theseAns : (E)

9. We very frequently read about Europe's Sovereign—debt crisisthese day. Which of the following statement/s is/are true about thesame ?1. In early 2010 the Euro crisis developed in some countries likeGreece, 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 ofseverely 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 theseAns : (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 taketo implement the same ?1. They will have to deposit some more money with the RBI as areserved money.2. Banks will be required to give some more loan to projects of thepriority sector.3. Banks will be required to give loan equivalent to the CRR to the

349

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 3Ans : (A)

11. As per estimates given by the RBI the Economic Growth duringthe year 2010-11 will be at which of the following levels ?(A) 6.5%(B) 7%(C) 7.5%(D) 8%(E) None of theseAns : (D)

12. Which of the following is/are correct about the RBI's credit policyannounced in April 2010 ?1. Repo rate raised by 25 bps.2. A new reporting platform was introduced for secondary markettransactions in Certificate of Deposits (CDs) and CommercialPapers (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 theseAns : (A)

13. As per the announcement made by the RBI some StockExchanges in India are allowed to introduce Plain Vanilla CurrencyOptions. The term Plain Vanilla Currency Options is associated withwhich 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 theseAns : (A)

14. Which of the following is not a term related to banking/financeoperations ?(A) Provision Coverage Ratio(B) Securitization(C) Consolidation(D) Commodification(E) DerivativesAns : (C)

15. The process of "Artificial Application of Water to the soil usuallyfor 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 theseAns : (B)

16. As per the news published in major news papers/journalshenceforth the Credit Card holders will be able to access their creditcard information though automated interactive voice responsesystem over the phone instead of speaking to the staff. Thisdecision ofthe banks/credit card companies will provide—1. an additional hurdle to the customers as people feel comfortablein talking to the staff instead of talking to a machine.2. an additional security to the customers as this does not allow anystaff to handle any transaction directly.3. some comfort to the banks as they will be able to reduce theirstaff strength.(A) Only 1(B) Only 2(C) Only 3(D) All 1, 2 and 3(E) Only 1 and 3Ans : (B)

17. The 34th National Game which were postponed several timesare 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 ismore powerful and dangerous than CO2 ?(A) Nitrogen(B) Sulphur di-oxide(C) Hydrogen(D) Methane(E) None of theseAns : (D)

19. Which of the following days was observed as World Water Day2010 ?(A) 20th June(B) 22nd July(C) 22nd March(D) 20th May(E) None of theseAns : (C)

20. Late Vinda Karandikar who died a few months back was afamous—(A) Author(B) Cine-Actor(C) Sportsman(D) Classical Singer(E) Social WorkerAns : (A)

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21. As per the reports published recently the Govt. of India hasdecided to create a separate agency/body scrutinize all ForeignDirect Investments (FDIs) officially. Up till now the securityscreening wasbeing 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 IndiaAns : (E)

22. As per the news reports in various news papers the USA hasoutlined some major policy goals to prevent the danger of nuclearterrorism. Which of the following is/are included in those policygoals ?1. Convene a nuclear security summit within a year's time under theleadership 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 3Ans : (E)

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23. 'Indira Gandhi Canal' which is around 450 km long provideirrigation facility mainly to which of the following states ?(A) Punjab(B) Haryana(C) Madhya Pradesh(D) Gujarat(E) RajasthanAns : (E)

24. Former caption of the Indian Cricket team, Ajit Wadekar isconferred 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 theseAns : (E)

25. Who amongst the following is the director of the popular Hindifilm "Oye Lucky ! Lucky Oye" ?(A) Mani Ratnam(B) David Dhavan(C) Dibankar Banerjee(D) R. Balakrishnan(E) None of theseAns : (C)

26. India recently signed an agreement to import Liquified NaturalGas (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 theseAns : (B)

27. As a measure to help countries hit by global financial meltdownthe RBI has purchased notes worth US $ 10 billion in terms ofSpecial Drawing Rights from a World Organisation/agency. Which isthis agency/organization ?

(A) Federal Reserve of U.S.A.(B) Asian Development Bank(C) World Bank(D) International Monetary Fund(E) None of theseAns : (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) DelhiAns : (A)

30. Which of the following is not a missile developed by the DefenceResearch and Development Organisation (DRDO) ?(A) Shaurya(B) Pinaka(C) Brahmos(D) Agni(E) NagAns : (A)

31. Which of the following declarations/treaties was adopted by theBRIC countries recently to promote Global Food Security ?(A) Moscow Declaration(B) Doha Treaty(C) Delhi Declaration(D) Kabul Treaty(E) None of theseAns : (A)

32. Which of the following statements represent(s) the mainobjective(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 theGDP.2. Setting up of Medical Grants Commission for funding new Govt. Medical & Dental colleges.3. Mandatory two years rural posting before awarding the degree toMedical Graduates.(A) Only 1(B) Only 2(C) Only 3(D) Only 1 and 3(E) All 1, 2 and 3Ans : (E)

33. Which of the following metals is used for genration of nuclearEnergy by most of the Nuclear Power Plants ?(A) Zinc(B) Platinum(C) Uranium(D) Nickel(E) None of theseAns : (C)

34. Indus Water Treaty is a pact on sharing of river water betweenIndia and—(A) Bangladesh(B) Pakistan(C) Nepal(D) Afghanistan

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(E) MyanmarAns : (B)

35. The Union Cabinet recently cleared Prohibition of unfair

Practices in Technical Medical Educational Institutes andUniversities Bill 2010. As per the bill which of the following will nowbe 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 theseAns : (A)

36. Which of the following is/are considered a Renewable Source ofEnergy ?1. Wind Energy2. Solar Energy3. Nuclear Energy(A) Only 1(B) Only 2(C) Only 3(D) Only 1 and 2(E) All 1, 2 and 3Ans : (D)

37. Which of the following countries is not amongst the top ten inindustrial 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 ofthe following countries ?(A) Australia(B) South Africa(C) Canada(D) New Zealand(E) IndiaAns : (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) CreditorAns : (A)

40. Insurance service provided by various banks is commonlyknown as—(A) Investment Banking(B) Portfolio Management(C) Merchant Banking(D) Bancassurance

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(E) Micro FinanceAns : (D)

41. Who amongst the following has recently taken over as theChairman 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 theseAns : (B)

42. Moortidevi Award is given for excellence in the field of—(A) Classical dance(B) Literature(C) Classical music(D) Cinematography(E) Social serviceAns : (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 theseAns : (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 theseAns : (B)

45. Which of the following countries won the Hockey World Cup2010 ?(A) Spain(B) England(C) India(D) Australia(E) None of theseAns : (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 theseAns : (C)

47. Mr. Surjit Patar who was awarded Saraswati Samman recentlyis a well known poet of—(A) Hindi

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(B) English(C) Punjabi(D) Urdu(E) BengaliAns : (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 LossAns : (E)

49. Which of the following Trophies/cups is associated with thegame 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 inOctober 2011.2) The 22nd Meeting of the Heads of Government of theCommonwealth of Nations was chaired by Julia Gillard, the PrimeMinister of Australia.3) Hamid Ansari, the Vice President, represented India at theSummit.4) Canadian Prime Minister Stephen Harper had threatened to

boycott the 2013 CHOGM, to be held in Sri Lanka, if allegations ofhuman 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 hometownSirte. He was the former leader of which of the following countries?

1) Tunisia2) Egypt3) Syria4) Libya5) Yemen

3. The Election Commission has disqualified Umlesh Yadav, anMLA from Uttar Pradesh, from contesting again for three years forsuppressing expenditure (the amount spent for issuing theadvertisements) in her election accounts. She is the first politicalvictim of the paid news phenomenon. She was elected from whichof the following political parties?1) Rashtriya Janata Dal2) Samajwadi Party3) Rashtriya Parivartan Dal4) Bharatiya Janata Party5) 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) Germany2) Italy3) United Kingdom4) France5) 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 givenannually?1) Print Journalism2) Cinema3) Architecture4) Medical Science5) Literature

6. The South India's first metro rail service was started in which of the following cities in October 2011?1) Chennai2) Bangalore3) Hyderabad4) Cochin5) None of these

7. Who is the Chairman of the Prime Minister's Economic Advisory

Council (PMEAC)?1) Bimal Jalan2) Suresh Tendulkar3) C.Rangarajan4) Y.V.Reddy5) Montek Singh Ahluwalia

8. Shakti-2011 is a joint army exercise between India and which ofthe following countries? (It was conducted in Uttarakhand inOctober 2011)1) Sri Lanka

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2) France3) USA4) China5) Philippines

9. Who won the National Chess title in Aurangabad in October

2011?1) Abhijeet Gupta2) Deepan Chakkravarthy3) S.P.Sethuraman4) M.R.Venkatesh5) Vidit Gujarathi

10. Who has been honoured with the Presidential Citizens Medal byU.S. President Barack Obama for her courage in overcoming andspeaking out against domestic abuse in the Indian-Americancommunity?1) Kavya Lahiri2) Vijaya Emani3) Kalpana Sen4) Anuradha Sen5) None of these

11. Which English cricketer is the author of the book 'The Breaks

are off-My Autobiography'?1) Kevin Pietersen2) Graeme Swann3) Alastair Cook4) 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 inOctober 2011?1) Sebastian Vettel2) Jenson Button3) Fernando Alonso4) Mark Webber5) Michael Schumacher

13. Who was re-appointed the Commonwealth Secretary- General for four more years in October 2011?1) Don McKinnon2) Arnold Smith3) Kamalesh Sharma4) Shridath Ramphal5) 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" inOctober 2011?1) N.S.Madhavan2) Rahul Bhattacharya3) Amitav Ghosh4) Anuradha Roy5) None

15. Who is the author of the book 'The TCS Story…and Beyond'?

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1) Ratan Tata2) N.Chandrasekaran3) S.Ramadorai4) N.R.Narayana Murty5) Nandan Nilekani

16. The National Development Council (NDC) meeting was held inNew Delhi recently. Who is the Chairman of the NDC?

1) Manmohan Singh2) P.Chidambaram3) Pranab Mukherjee4) Sonia Gandhi5) Montek Singh Ahluwalia

17. Jigme Khesar Namgyel Wangchuck visited India recently. He isthe king of which of the following countries?1) Nepal2) Mauritius3) Thailand4) Bhutan5) None of these

18. New Zealand won the Rugby World Cup in October 2011 afterdefeating which of the following countries in the final held in

Auckland, New Zealand?1) USA2) UK3) Canada4) Australia

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5) France

19. Ellen Johnson Sirleaf is one of the three recipients of the NobelPeace Prize for 2011. She is the President of which of the following

countries?1) Yemen2) Liberia3) Rwanda4) Sudan5) Kenya

20. Who is considered as the father of the white revolution in India?1) M.S.Swaminathan2) H.G. Khorana3) U.R.Rao4) Verghese Kurien5) None

21. Which of the following terms is used in the game of hockey?1) Deuce2) Penalty Corner3) LBW4) No Ball5) Back Hand

22. Which city hosted the 5th IBSA Summit in October 2011?1) Cape Town2) Durban3) Pretoria

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4) Johannesburg5) Bloemfontein

23. Who among the following leaders did not attend the IBSASummit in October 2011?1) Dilma Rousseff2) Jacob Zuma3) Manmohan Singh4) Dmitri Medvedev5) None of these

24. Who among as following has been elected the President ofKyrgyzstan? (He is the present Prime Minister)1) Adakhan Madumarov2) Kamchibek Tashiyev3) Almazbek Atambayev4) Nursultan Nazarbayev5) None of these

25. Who was presented the Indira Gandhi Award for NationalIntegration 2010 for his yeoman service in promoting and preservingthe spirit of national integration on October 31, 2011, the deathanniversary of Indira Gandhi?1) Vijay Darda2) Mohan Dharia3) Jaipal Reddy4) Pranab Mukherjee5) A.K.Antony

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26. Who headed the Committee on direct transfer of subsidies onKerosene, LPG and Fertilizers to the beneficiaries?1) Manmohan Singh2) Pranab Mukherjee3) C.Rangarajan4) Nandan Nilekani5) Montek Singh Ahluwalia

27. Which of the following programmes launched by theGovernment of India aims at enhancing the Livelihood security ofthe people in rural areas by guaranteeing hundred days ofemployment in a financial year to a rural household?1) JNNURM2) ASHA3) Kutir Jyoyhi4) Bharat Nirman5) MGNREGS

28. Which of the following is the period of the first Five Year Plan inIndia?1) 1950-552) 1947-523) 1951-564) 1948-535) None of these

29. What is the name of the scheme that was launched by theGovernment of India for adolescent girls in November 2010?

1) ASHA

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2) Swabhiman3) Swawalamban4) SABALA5) Aadhar

30. PIIGS is an acronym for nations of which of the following

continents?1) Asia2) Africa3) Europe4)South America5) North America

31. Who among the following has never worked as RBI Governor?1) C.Rangarajan2) Bimal Jalan3) Manmohan Singh4) L.K.Jha5) Yashwant Sinha

32. Which bank has taken over the Centurion Bank of Punjab?1) ICICI Bank2) HDFC Bank3) IDBI Bank4) AXIS Bank5) OBC

33. Which country is considered as the pioneer of Micro Finance?1) India

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2) Pakistan3) Bangladesh4) Sri Lanka5) China

Answers1) 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) 226) 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 Bengaloreb) Mumbai Indiansc) Kolkata Knight Ridersd) Deccan Chargerse) Chennai Super Kings

2. In the run-up to the free trade agreement between India and theEuropean Union (EU), which of the following subjects has the EUtaken up with the World Trade Organisation (WTO) pressing for itsinclusion much to India’s discomfort?a) Farm goodsb) Defence articlesc) Intellectual Property Rights

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d) Visa normse) Industrial goods

3. Which of the following cities has been declared as the costliestcity in the world?a) Kobeb) Parisc) Zurichd) Osloe) Tokyo

4. What is the Minimum Support Price (MSP) per quintal fixed bythe Centre for wheat for the season 2010-11?a) Rs. 1,000b) Rs.1,100c) Rs.1,200d) Rs.1,300e) Rs.1,2505.Who is to take over as non-executive chairman of India’s secondlarges IT company, Infosys, when the incumbent chairman NRNarayana Murthy retires in August this year?a) KV Kamathb) Amit Mitrac) Renuka Ramnathd) Samidha Sharmae) Vinita Bali

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6 In which of the following countries has Tata Motors launched itsNano cars, touted to be the cheapest car of the world, for the firsttime outside India?A) Sri LankaB) NepalC) MalaysiaD) Indonesiaa) Only (B)b) Only (A) Indonesiac) Only (C)d) Only (A), (B) and (D)e) None of these7. Which f the following business ownership structure companies

has been given green signal by the stock market regulator, SEBI, toget membership of stock exchanges and make brokers?

a) Sole proprietorship companiesb) Limited liability companiesc) Non-profit organizationsd) Cooperative companiese) None of these8.Which of the following teams has won the Santosh Trophy footballtournament?a) Manipurb) Delhic) Haryanad) West Bengale) Madhya Pradesh

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9.With which of the trading partners do Indian farm goods facemarket access problems on the grounds of arbitrary SPS (Sanitaryand Phyto-Sanitary) standards and CCC (chemical residues)?

a) USb) ASEANc) SAARCd) EUe) Japan

10.Indian Railways is to construct the longest tunnel (11km long) onits network in the under-construction railway segments ofa) Indo-Burma rail projectb) West Coast Railways of India

c) Katra-Qazigund Pir Panjal Tunneld) Arunachal railway projecte) Gangtok - Siliguri railway project

11. There has been stalemate in the drafting committee of LokpalBill between the civil activists and political leader over the contentsof he Bill. Which of the following are the major bones of contentionbetween the two sides?I. Inclusion of the office of the Prime Minister under anti-corruptionwatchdogII. 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 IIb) Only IVc) Only I, II and IVd) All the abovee) None of these

12. Which of the following teams has recently won the ChampionsLeagues final at Wembley in London?a) Manchester Unitedb) Barcelonac) Real Madridd) AC Milane) Chelsea FC

13.Which of the following countries has recently decided to phaseout all it nuclear power plants by 2022?a) Japanb) Italyc) Ukrained) Germanye) Spain

14.Who has been honoured with the prestigious Jawaharlal NehruAward for International Understanding for 2009?a) Angela Merkelb) Hillary Clintonc) Aung San Suu Kyi

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d) Lula da Silvae) 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 SecurityCouncil. Apart from India, which are the other three countriesconstitution G4?a) Brazil, Germany and Japanb) Brazil, South Africa and Japanc) Mexico, Brazil and South Africa

d) Japan, Brazil and Mexicoe) None of these

16.In which of the following international universities has a chair been instituted in the memory of India’s pioneering developmenteconomist, Sanjay Lall?a) Cambridge University

b) Stanford Universityc) Oxford Universityd) Moscow Universitye) San Carlos University

17.Name the new non-linked health insurance plan of the LifeInsurance Corporation (LIC) of India which offers comprehensivehospitalization benefits for the whole family and parents-in-law ofthe principal insured?a) Rishtey

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b) Jeevan Sathic) Anmol Jeevand) Health Pluse) Jeevan Arogya

18.Who has been nominated for the CK Naidu LifetimeAchievement award?a) Lala Amarnathb) Salim Durranic) Syed Mushtaq Alid) KN Prabhue) Syed Kirmani

19. British - born Sierra Leonean novelist Aminatta Forma won the2011 Commonwealth Writers’ Prize for which of the following

novels?a) The Devil that Danced on the Waterb) Ancestor Stonesc) The Memory of Love

d) Ancestor Lovee) All for Love

20. Which of the following rules has/have not been scrapped by theinsurance regulator IRDA?a) Commission on the sale of ULIPb) Profitability clause of three years for floating initial public offer(IPOs)

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c) Traditional insurance plans have to make 50% investment ingovernment bondsd) Only a and be) Only a and c

21.Small Industries Development Bank of India (SIDBI) has beenoperating under SWS. What is the full form of SWS?a) Small Welfare Schemeb) Single Window Schemec) Small Window Serviced) Single Window Servicee) None of these

th22. Which of the following is the target fixed by the 11 five-yearplan pertaining to increase literacy, level by the 2012 The levelshould be increased toa) 50%b) 60%c) 70%d) 85%e) 90%

23.‘Blue Revolution’ is related toa) Space Researchb) Fisheriesc) Drinking Waterd) Poultry

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e) Milk

24.Normally two types of factors are responsible for industrialsickness - external and internal. Which of the following is not aninternal factor of industrial sickness?a) Shortage of powerb) Mismanagementc) Diversion of fundsd) Excessive overheadse) Overestimation of demand

25.Which of the following is an employment - generating scheme?a) Ganga Kalyan Yojanab) IRDAc) Swarnjayanti Shahri Rozgar Yojanad) Mid-Day Meal Schemee) All of the above.

26.Ethanol - mixed petrol is being sold in various states wef January1, 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 DomesticProduct of India?a) Services - Industry - Agricultureb) Services - Agriculture - Industryc) Industry - Services - Agricultured) Industry - Agriculture - Servicese) None of these

28.Which of the following agencies recently laid down guidelines forforeign companies who wish to raise money from the Indian capitalmarkets?a) RBIb) IRDAc) Registrar of companiesd) SEBIe) None of these

29. Consider the following statements:A) The repo rate is the rate at which other banks borrow moneyfrom the Reserve Bank of India.B) A value of one for Gini co-efficient in a country implies that thereis perfectly equal income for everyone in its population.C) Higher interest rates can make EMIs costly. Which of thestatements given above is/are correct?a) Only Ab) Only A and C

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c) Only B and Cd) All the abovee) None of these

30. These days, more and more banks in Indian are setting up theirATMs and discouraging people to visit their branches fortransaction. Which of the following is/are the limitations of the ATMswhich force people to go to branch for transactions?A) Lack of human interfaceB) Communication gapC) Limited cash - dispensing abilitya) Only Ab) Only Bc) Only Cd) Both A and Be) A, B, and C All

31.Which of the following countries has the largest stock of foreignexchange reserves in the world?a) USAb) Chinac) Japand) Indiae) None of these

32.Which of the following taxes is exclusively and totally assigned tothe state government by the Constitutions?

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a) Estate dutyb) Sales Taxc) Taxes on Railway fares and freightsd) Corporation taxe) Entertainment

33. The tax on import and export is known asa) Income taxb) Trade taxc) Customs dutyd) Commercial taxe) None of the above

34.Which of the following is not an objective of fiscal policy of Indian

government?a) Full employmentb) Price stabilityc) Regulation of inter-state traded) Equitable distribution of wealth and income

e) None of these

35. In India, national income is estimated bya) Planning Commissionb) Central Statistical Organisationc) Indian Statistical Instituted) National Sample Survey Organisation

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e) None of these

36.Bharat Nirman Scheme of the UPA government does not includea) Rural water supply projectb) Irrigation benefit programmec) Rural electrificationd) Sarva Shiksha Abhiyane) None of these

37. Invisible export means export ofa) Servicesb) Prohibited goodsc) Unrecorded goodsd) Goods through smugglinge) Illegal export through a third county

38.A labour-intensive industry is one thata) requires hard manual labourb) pays adequate wages to the labourc) employs more handsd) provides facilities to labour

e) None of these

39.In the law of demand, the statement ‘other things remainconstant’ means.a) income of consumer should not change

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b) prices of other goods should not changec) taste of consumer should not changed) All the abovee) None of these

40.A firm is in equilibrium when itsa) Marginal cost equals the marginal revenueb) Total cost is minimumc) Total revenue is maximumd) Average revenue and marginal revenue are equale) None of these

41.Bhagyam oil fields which are being explored by Carins India, islocated ina) Assamb) Gujaratc) Rajasthand) Karnatakae) None of the above

42.In which of the following regions of India has the ArchaeologicalSurvey of India (ASI) found evidences of hearths built by cuttingnatural mountains belonging to periods 3,000 to 4,000 years ago,for the first time?a) Garo Hills, Meghalayab) Mishmi Hills, Arunachal Pradeshc) Western Ghats

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d) Ladakh Valleye) 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 Sunb) Daily Mirrorc) The Morning Stard) News of the Worlde) None of these

44.Which of the following mobile operators has launched its mobilenewspaper, Newswrap, for its customers in Hyderabad?a) Airtelb) Reliancec) Idead) Vodafonee) Aircel

45.Which of the following countries has taken over the rotationalpresidency of the European Union (EU) on July 1, 2011?a) Denmarkb) Britainc) Germanyd) Polande) Netherlands

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46.Which of the following is the youngest country of the world thathas joined the community of nations on July 9, 2011?a) South Sudanb) Maldovac) Estoniad) East Timore) None of these

47. Name the Indian woman athlete who has clinched gold medal inhigh jump in the Asian Athletic Championship in Kobe, Japan. a) Shiny Wilsonb) Mayookha Johnyc) Soma Biswasd) Neelam Jaswant Singhe) 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 Rateb) Repo Ratec) Savings Bank Rated) Cash Reserve Ratioe) Statutory Liquidity Ratio

49.Consider the following statements about the contentious issuesin the upcoming India-EU free trade agreement.

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A) Intellectual property should be included in the investment chapterB) Government procurement policy in agriculture should be kept outof 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 Ab) Only A and Bc) Only A and Cd) All the abovee) 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 Pradeshb) Tamil Naduc) Gujaratd) Karnatakae) None of these

ANSWERS:1.e 2.c 3.e 4.b 5.a 6.d 7.b 8.d 9.b 10.c

11.c 12.b 13.d 14.a 15.a 16.c 17.e 18.d 19.c 20.d

21.d 22.d 23.b 24.a 25.c 26.e 27.a 28.d 29.d 30.c31.b 32.b 33.c 34.c 35.b 36.d 37.a 38.c 39.d 40.a41.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 Bank2) Syndicate bank3) Axis bank4) Central Bank of India5) Oriental Bank of Commerce

2. Banks cannot accept ........... 1) Cash2) Postal Stamps3) Drafts4) Bill of exchange5) pay order

3. Cheque facility is not available in ...........?1) Savings Account2) Current Account

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3) Recurring Account4) Savings and Current Account5) All of above

4. The Demand Draft can be issued to ...........?

1) Farmer2) Student3) Government employee4) Business man5) All of above

5. Core banking means ...........?1) Connectivity between all branches and RBI2) Connectivity between all branches and the branches of otherbank3) Connectivity of branches, ATM and online systems of allbranches4) Connectivity between all RRB's and RBI5) None

6. Which of the following rate usually not declared by RBI?

1) SLR2) CRR3) Base rate4) Repo Rate5) Reverse repo Rate

7. In private sector bank, the government may have the stake up to........... percent?

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1) 502) 513) 1004) 495) 0

8. In public sector bank, the government stake must be least ...........percent?1) 502) 1003) 904) 515)1

9. NEFT rules are given. Pick the wrong one?1) NEFT means National Electronic Fund Transfer2) Up to 2 lakhs the amount can be transferred3) Both in Savings and Current Account the funds can be

transferred4) 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 Settlement2) Above 2 lakhs the funds can be transferred3) RTGS facility not available in current account4) The charges of RTGS to be paid by the customer5) All of above

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11 All savings bank accounts carry nominee name. A nomineecannot be ...........?1) Friend2) Mother3) Father4) Son5) Daughter

12. On 19 October 2011, Pranab Mukarjee said the Union

Government inject the funds in to public sector banks to maintainTier Capital of ...........percent?1) 52) 103) 64) 75) 8

13. The negotiable instrument is ...........?1) Cheque2) Demand draft3) Bill of Exchange4) Treasury Bills5) All of above

14. Negotialble instruments rules and regulations mentioned by...........?1) Negotiable cheque Act 19012) 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. Thedrawer is ...........?1) One who writes cheque2) One who receives cheque

3) One who mediates cheque4) 1 & 35) None

16. In the cheques, the drawee is...........1) One who writes cheque2) One who mediates cheque3) RBI4) Bank5) All of above

17. Drawing two or three lines on the left head of cheque is called...........?1) Nullity2) Paid3) Offering4) Crossing5) Nothing

18. Crossing means the bank should ...........?1) Make the payment stop

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2) Make the payment late3) Make the payment to payee through account only4) Pay the amount to anybody5) None

19. The cheque bounce due to ...........?1) If the correct date written2) If the Sunday date written3) If the public holiday date written4) If the date is the 30th of any month5) Post date written

20. Cheque bounce due to ...........?1) More funds2) Funds not excessive at least Rs.10003) Lack of funds4) If the amount has paise denomination5) In all above cases

21. Cheque bounce due to ...........?1) If the cheque is given with signature2) If the cheque issued to government employee3) Alteration made without signature4) If the cheque value is more than 50 lakhs5) In all above cases

22. On 20th October 2011, State Bank of India declared it earned3.5 NIM in the second quarter. NIM stands for ...........?1) Net Interest Minimum

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2) Not Interest Margin3) Net Internal Margin4) Net Interest Module5) Net Interest Margin

23. ETF stands for ...........(In these days the people are buyingGOLD ETF bonds)1) Extra Trade Forum2) Exchange Trade Finance3) Eternal Trade Fund4) Exchange Trade Forum5) Exchange Traded Fund

24. Chairman of the National Advisory Committee on AccountingStandards is ...........?1) D.Subba Rao2) Y.V.Reddy3) Y.H.Malegam4) K.C.Chakravarthy5) Montek Singh Ahluwalia

25. Which financial institute declared October month as SocialSecurity Month?1) SBI2) Religare3) LIC4) India First5) GIC

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26. FAO conference on East Africa famine concluded in ...........?1) Rome2) Vienna3) Newyork4) Washington5) Canberaa

27. UN AIDS ambassador ...........participated in International AIDSconference on 7 Oct 2011 at Moscow?

1) Preity Zinta2) Sharmila Tagore3) Leela Samson4) Mamatha Sharma5) Shantha Sinha

28. Two public sector enterprises applied for the status of Maharatna recently. They are ...........?1) CIL,HCL2) ONGC,SBI3) IOC,NTPC4) SAIL,BEL5) BHEL,GAIL

29. H- 1 (2011-2012)tax collection increased by ........... percent leading the collection to Rs.4,25,712 crores?1) 14.52) 20.63) 22.14)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) Eight2) Ten3) Six4) Seven5) Three

31. ...........has introduced the nation's first petrol pump with self service refuelling facility in New Delhi?1) ONGC2) HP3) IOC4) BP5) None

32. The second highest test Century (35) maker is Dravid. He is thecricketer from ...........?1) Andhra Pradesh2) Mumbai3) Delhi4) West Bengal5) Karnataka

33. Baichiung Bhutia retired from international events. He is theformer Indian ........... captain?

1) Volley ball

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2) Foot Ball3) Cricket4) Kho Kho5) Kabbaddi

34. The term gully used in ...........?1) Foot ball2) Volley ball3) Hand ball4) Hockey5) Cricket

35. The FIFA(Federation of International Football Association) worldcup venues given. Pick the correct one?1) 2010-South Africa2) 2014-Brazil3) 2018-Russia4) 2022-Qatar5) All of above

36. ...........released $ 1.5 billion aid to Libya on 27 August 2011?

1) USA2) Russia3) UNO4) IBRD5) IMF

37. Union government sanctioned Rs............crores for trackingcyclones in coastal states?

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1) 15002) 25003) 20004) 17005) 900

38. Fast attack warship ........... commissioned in Indian Navy on 26August 2011?1) Kaurava2) Pandava3) Karna4) Salya5) None

39. The Prime Minister announced the free import of 61 items fromBangladesh. The currency of Bangladesh is...........?1) Dollar2) Rupee3) Ngultrum4) Pound5) Taka

40. Among 28 states in India, 17 states have Lokayukta. The firstLokayukta established in 1970 is ...........1) Odisha2) Andhra Pradesh3) Assom4) Tamilnadu5) Sikkim

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41. The Lokayukta who inducted Yedurappa, the chief minister ofKarnataka is ...........?1) Justice Rey2) Justice Kania3) Justice Panduranga4) Justice Sudha Misra5) Justice Santosh Hegdey

42. The Lokayukta who resigned in Karnataka on the allegations of Land Scam?1) Justice Nanavathi2) Justice Bhagavathi3) Justice Chandra Chud4) Justice Mukarjee5) Justice Sivaraj Patil

43. Recently the inventor of iPad died. He is ...........?1) Edwin H. Armstrong2) Charles Babbage3) Steve Jobs4) William Seward Burroughs5) George Eastman

44. On 17th August 2011, ...........topped as most valuable firm

crossing RIL ( Reliance Industries Limited) in market capitalization?

1) BHEL2) ISRO3) Bharati Cement

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4) Coco-Cola5) Coal India Limited

45. Top three destinations of Indian exports as per e-Bay site?1) Eurpoe,USA and UK2) USA,UK and Germany3) USA, Indonesia and China4) USA,UK and Europe5) USA,UK and Australia

46. The export promotion scheme 'Focus: LAC' applies to ...........?

1) European Union2) North America3) South East Asia4) Africa5) South America

47. 100th International Labour Organization summit held in...........on 13 June 2011?1) Geneva2) Paris3) New York4) Washington5) Rome

48. National convention of Parliamentarians, Legislators, zillaparishad chairpersons and mayors on HIV/ AIDS held in...........on 4,5 July 2011?1) Mumbai

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2) Hyderabad3) Chennai4) New Delhi5) Pune

49. World Investors summit will be held in ..........1) Hyderabad2) New Delhi3) Bengaluru4) Chennai5) 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)116)4 17)418)3 19)5 20)3 21)3 22)5 23)5 24)3 25)3 26)1 27)1 28)5 29)3 30)531)3 32)5 33)234)5 35)5 36)3 37)1 38)1 39)5 40)1 41)5 42)5 43)3 44)5 45)5 46)547)1 48)4 49)3.

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BANKING & FINANCIAL TERMS

• Accrued interest : Interest due from issue date or from the lastcoupon payment date to the settlement date. Accrued interest onbonds must be added to their purchase price.

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

• Ask Price : The lowest price at which a dealer is willing to sell a

given security.

• Asset-Backed Securities (ABS) : A type of security that isbacked 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.

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

• Basis Point : One hundredth of 1%. A measure normally used inthe statement of interest rate e.g., a change from 5.75% to

5.81% is a change of 6 basis points.

• Bear Markets : Unfavorable markets associated with fallingprices and investor pessimism.

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

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• Bid Price : The highest price offered by a dealer to purchase a

given security.

• Blue Chips : Blue chips are unsurpassed in quality and have along and stable record of earnings and dividends. They are

issued by large and well-established firms that have impeccablefinancial credentials.

• Bond : Publicly traded long-term debt securities, issued by

corporations and governments, whereby the issuer agrees topay a fixed amount of interest over a specified period of time andto repay a fixed amount of principal at maturity.

• Book Value : The amount of stockholders’ equity in a firm equalsthe amount of the firm’s assets minus the firm’s liabilities andpreferred stock. /p>

• Broker : Individuals licensed by stock exchanges to enable

investors to buy and sell securities.

• Brokerage Fee : The commission charged by a broker.

• Bull Markets : Favorable markets associated with rising pricesand investor optimism.

• Call Option : The right to buy the underlying securities at a

specified exercise price on or before a specified expiration date.

• 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.

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

• Certificate of Deposits (CDs) : Savings instrument in which

funds must remain on deposit for a specified period, andpremature withdrawals incur interest penalties.

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

• 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.

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

• Common Stock : Equity investment representing ownership in acorporation; each share represents a fractional ownershipinterest in the firm.

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

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• Contract Note : A note which must accompany every securitytransaction which contains information such as the dealer’sname (whether he is acting as principal or agent) and the date ofcontract.

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

• Convertible Bond : A bond with an option, allowing thebondholder to exchange the bond for a specified number ofshares of common stock in the firm. A conversion price is thespecified value of the shares for which the bond may be

exchanged. The conversion premium is the excess of the bond’svalue over the conversion price.

• Corporate Bond : Long-term debt issued by privatecorporations.

• Coupon : The feature on a bond that defines the amount ofannual interest income.

• Coupon Frequency : The number of coupon payments per year.

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

• Covered Warrants : Derivative call warrants on shares which

have been separately deposited by the issuer so that they areavailable for delivery upon exercise.

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

• Currency Board : A monetary system in which the monetary

base is fully backed by foreign reserves. Any changes in the sizeof the monetary base has to be fully matched by corresponding

changes in the foreign reserves.

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

• Custody of Securities : Registration of securities in the name ofthe person to whom a bank is accountable, or in the name of thebank’s nominee; plus deposition of securities in a designated

account with the bank’s bankers or with any other institutionproviding 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.

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

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

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

• Diversification : The inclusion of a number of differentinvestment vehicles in a portfolio in order to increase returns orbe exposed to less risk.

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

• Earnings : The total profits of a company after taxation andinterest.

• Earnings per Share (EPS) : The amount of annual earningsavailable to common stockholders as stated on a per sharebasis.

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

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• Equity : Ownership of the company in the form of shares of

common stock.

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

• Ex-dividend (XD) : A security which no longer carries the right tothe most recently declared dividend or the period of timebetween 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 innewspapers with an (x) next to the stock’s or unit trust’s name.

• Face Value/ Nominal Value : The value of a financial instrumentas stated on the instrument. Interest is calculated onface/nominal value.

• Fixed-income Securities : Investment vehicles that offer a fixed

periodic return.

• Fixed Rate Bonds : Bonds bearing fixed interest payments until maturity date.

• Floating Rate Bonds : Bonds bearing interest payments that aretied to current interest rates.

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

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prospects, expectations for future interest rates and riskevaluation of the firm.

• Future Value : The amount to which a current deposit will growover a period of time when it is placed in an account paying

compound interest.

• Future Value of an Annuity : The amount to which a stream of

equal cash flows that occur in equal intervals will grow over aperiod of time when it is placed in an account paying compound

interest.

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

• Hedge : A combination of two or more securities into a single

investment position for the purpose of reducing or eliminatingrisk.

• Income : The amount of money an individual receives in aparticular time period.

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

• Initial Public Offering (IPO) : An event where a company sellsits shares to the public for the first time. The company can bereferred to as an IPO for a period of time after the event.

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• Inside Information : Non-public knowledge about a companypossessed by its officers, major owners, or other individuals withprivileged access to information.

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

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

• Investment : A vehicle for funds expected to increase its value

and/or generate positive returns.

• Investment Adviser : A person who carries on a business whichprovides investment advice with respect to securities and is

registered with the relevant regulator as an investment adviser.

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

• Junk Bond : High-risk securities that have received low ratings

(i.e. Standard & Poor’s BBB rating or below; or Moody’s BBBrating or below) and as such, produce high yields, so long asthey do not go into default.

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

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• Libor : The London Interbank Offered Rate (or LIBOR) is a dailyreference rate based on the interest rates at which banks offer to

lend unsecured funds to other banks in the London wholesalemoney market (or interbank market). The LIBOR rate ispublished daily by the British Banker’s Association and will beslightly higher than the London Interbank Bid Rate (LIBID), the

rate at which banks are prepared to accept deposits.

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

• Limited Company : The passive investors in a partnership, whosupply most of the capital and have liability limited to the amountof their capital contributions.

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

• Listing : Quotation of the Initial Public Offering company’s

shares on the stock exchange for public trading.

• Listing Date : The date on which Initial Public Offering stocks

are first traded on the stock exchange by the public

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

• Market Capitalization : The product of the number of thecompany’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 ormore stocks and undertakes to make continuous two-sidedquotes.

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

• Money Market : Market in which short-term securities are boughtand sold.

• Mutual Fund : A company that invests in and professionallymanages a diversified portfolio of securities and sells shares ofthe portfolio to investors.

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

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

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

• Open-end (Mutual) Fund : There is no limit to the number ofshares the fund can issue. The fund issues new shares of stockand fills the purchase order with those new shares. Investors

buy their shares from, and sell them back to, the mutual funditself. The share prices are determined by their net asset value.

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• Open Offer : An offer to current holders of securities to subscribefor securities whether or not in proportion to their existing

holdings.

• Option : A security that gives the holder the right to buy or sell acertain amount of an underlying financial asset at a specified

price for a specified period of time.

• Oversubscribed : When an Initial Public Offering has moreapplications than actual shares available. Investors will oftenapply for more shares than required in anticipation of onlyreceiving a fraction of the requested number. Investors andunderwriters will often look to see if an IPO is oversubscribed asan indication of the public’s perception of the business potentialof the IPO company.

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

• Par Value : The face value of a security.

• Perpetual Bonds : Bonds which have no maturity date.

• Placing : Obtaining subscriptions for, or the sale of, primarymarket, where the new securities of issuing companies areinitially sold.

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

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

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

• Premium Bond : Bond selling above par.

• Present Value : The amount to which a future deposit willdiscount back to present when it is depreciated in an accountpaying compound interest.

• Present Value of an Annuity : The amount to which a stream of

equal cash flows that occur in equal intervals will discount backto present when it is depreciated in an account payingcompound interest.

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

• Privatization : The sale of government-owned equity innationalized industry or other commercial enterprises to private

investors.

• Prospectus : A detailed report published by the Initial PublicOffering 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 aspecified exercise price on of before a specified expiration date.

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

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

• Redemption Value : The value of a bond when redeemed.

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

• Relative Strength Index (RSI) : A stock’s price that changesover a period of time relative to that of a market index such asthe Standard & Poor’s 500, usually measured on a scale from 1

to 100, 1 being the worst and 100 being the best.

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

• Resistance Level : A price at which sellers consistentlyoutnumber buyers, preventing further price rises.

• Return : Amount of investment gain or loss.

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

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

in exchange for greater risk.

• Senior Bond : A bond that has priority over other bonds inclaiming assets and dividends.

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

• Settlement : Conclusion of a securities transaction when acustomer pays a broker/dealer for securities purchased ordelivered, securities sold, and receives from the broker theproceeds of a sale.

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

• Short Selling : The sale of borrowed securities, their eventualrepurchase by the short seller at a lower price and their return tothe lender.

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• Speculation : The process of buying investment vehicles in

which the future value and level of expected earnings are highlyuncertain.

• Stock Splits : Wholesale changes in the number of shares. Forexample, a two for one split doubles the number of shares butdoes not change the share capital.

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

• Substantial Shareholder : A person acquires an interest in

relevant share capital equal to, or exceeding, 10% of the sharecapital.

• Support Level : A price at which buyers consistently outnumbersellers, preventing further price falls.

• Technical Analysis : A method of evaluating securities byrelying on the assumption that market data, such as charts ofprice, volume, and open interest, can help predict future (usuallyshort-term) market trends. Contrasted with fundamental analysiswhich 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 intendedfor.

• 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.

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

• Underlying Security : The security subject to being purchased

or sold upon exercise of the option contract.

• Valuation : Process by which an investor determines the worth

of a security using risk and return concept.

• Warrant : An option for a longer period of time giving the buyerthe right to buy a number of shares of common stock incompany at a specified price for a specified period of time.

• Window Dressing : Financial adjustments made solely for thepurpose of accounting presentation, normally at the time ofauditing of company accounts.

• Yield (Internal rate of Return) : The compound annual rate ofreturn earned by an investment

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

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investor’s capital gain or loss on the security are taken intoaccount.

• 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, 2011Anytime Banking : With introduction of ATMs, Tele-Banking andinternet banking, customers can conduct their business anytime of the day and night. The 'Banking Hours' is not a constraint for

transacting banking business.

Anywhere Banking : Refers to banking not only by ATMs,Tele-Banking and internet banking, but also to core bankingsolutions brought in by banks where customer can deposit hismoney, cheques and also withdraw money from any branch

connected with the system. All major banks in India have brought incore banking in their operations to make banking truly anywherebanking.

ATM :ATMs are Automatic Teller Machines, which do the job of ateller in a bank through Computer Network. ATMs are located onthe branch premises or off branch premises. ATMs are useful todispense cash, receive cash, accept cheques, give balances in theaccounts and also give mini-statements to the customers.

Bank Ombudsman : Bank Ombudsman is the authority to look intocomplaints against Banks in the main areas of collection of cheque /bills, issue of demand drafts, non-adherence to prescribed hours ofworking, 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. ThisScheme was announced in 1995 and is functioning with new

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guidelines from 2007. This scheme covers all scheduled banks, theRRBs and co-operative banks.

Bancassurance : Bancassurance refers to the distribution ofinsurance products and the insurance policies of insurance

companies which may be life policies or non-life policies like homeinsurance - car insurance, medi-policies and others, by banks ascorporate 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 bythe bankers, who can retain goods bailed to them as a security for

general balance of account. Bankers can have this right in theabsence of a contract to the contrary.

Banking : Accepting for the purpose of lending or investment ofdeposits of money from Public, Repayable on demand or otherwiseand withdrawable by cheques, drafts, order, etc.

Basel-II : The Committee on Banking Regulations and SupervisoryPractices, popularity known as Basel Committee, submitted itsrevised version of norms in June, 2004. Under the revised accord

the capital requirement is to be calculated for credit, market andoperational risks. The minimum requirement continues to be 8% of

capital fund (Tier I & II Capital) Tier II shall continue to be not morethan 100% of Tier I Capital.

Brick & Mortar Banking : Brick and Mortar Banking refers totraditional system of banking done only in a fixed branch premises

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made of brick and mortar. Now there are banking channels likeATM, Internet Banking,tele banking etc.

Business of Banking : Accepting deposits, borrowing money,lending money, investing, dealing in bills, dealing in Foreign

Exchange, Hiring Lockers, Opening Safe Custody Accounts, IssuingLetters of Credit, Traveller's Cheques, doing Mutual Fund business,Insurance Business, acting as Trustee or doing any other businesswhich Central Government may notify in the official Gazette.

Bouncing of a cheque : Where an account does not have

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 'Bouncingof a cheque' .

Certificate of Deposit :. Certificate of Deposits are negotiablereceipts 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. 1lakh and they are transferable by endorsement and delivery.

Cheque : Cheque is a Bill of Exchange drawn on a specified bankerordering the banker to pay a certain sum of money to the drawer ofcheque or another person. Money is generally withdrawn by clientsby cheques. Cheque is always payable on demand.

Cheque Truncation : Cheque truncation, truncates or stops theflow of cheques through the banking system. Generally truncation

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takes place at the collecting branch, which sends the electronicimage of the cheques to the paying branch through the clearing

house and stores the paper cheques with it.

Collecting Banker : Also called receiving banker, who collects oninstruments like a cheque, draft or bill of exchange, lodged with

himself for the credit of his customer's account.

Consumer Protection Act : It is implemented from 1987 to enforce

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.20Lacs in District Court, and for amounts above Rs.20 Lacs to Rs.1Crore in State Commission and for amounts above Rs.1 Crore inNational Commission.

Co-operative Bank : An association of persons who collectively

own and operate a bank for the benefit of consumers / customers,like Saraswat Co-operative Bank or Abhyudaya Co-operative Bankand other such banks.

Co-operative Society : When an association of persons collectivelyown and operate a unit for the benefit of those using its services likeApna Bazar Co-operative Society or Sahakar Bhandar or aCo-operative Housing Society.

Core Banking Solutions (CBS) : Core Banking Solutions is a buzzword 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 of Cheques : Crossing refers to drawing two parallellines across the face of the cheque.A crossed cheque cannot bepaid in cash across the counter, and is to be paid through a bankeither by transfer, collection or clearing.A general crossing meansthat 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 : Current account with a bank can be openedgenerally for business purpose. There are no restrictions onwithdrawals in this type of account. No interest is paid in this type ofaccount.

Customer : A person who maintains any type of account with abank is a bank customer. Consumer Protection Act has a widerdefinition for consumer as the one who purchases any service for afee like purchasing a demand draft or a pay order. The term

customer is defined differently by Laws, softwares and countries.

Debit Card : A plastic card issued by banks to customers towithdraw money electronically from their accounts. When youpurchase things on the basis of Debit Card the amount due isdebited immediately to the account . Many banks issueDebit-Cum-ATM Cards.

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Debtor : A person who takes some money on loan from another

person.

Demand Deposits : Deposits which are withdrawn on demand by

customers.E.g. savings bank and current account deposits.

Demat Account : Demat Account concept has revolutionized thecapital market of India. When a depository company takes papershares from an investor and converts them in electronic formthrough the concerned company, it is called Dematerialization ofShares. These converted Share Certificates in Electronic form are

kept in a Demat Account by the Depository Company, like a bankkeeps money in a deposit account. Investor can withdraw theshares or purchase more shares through this demat Account.

Dishonour of Cheque : Non-payment of a cheque by the paying

banker with a return memo giving reasons for the non-payment.

Debit Card : A plastic card issued by banks to customers towithdraw money electronically from their accounts. When youpurchase things on the basis of Debit Card the amount due isdebited immediately to the account . Many banks issueDebit-Cum-ATM Cards.

Debtor : A person who takes some money on loan from another

person.

Demand Deposits : Deposits which are withdrawn on demand by

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customers.E.g. savings bank and current account deposits.

Demat Account : Demat Account concept has revolutionized thecapital market of India. When a depository company takes papershares from an investor and converts them in electronic formthrough the concerned company, it is called Dematerialization ofShares. These converted Share Certificates in Electronic form are

kept in a Demat Account by the Depository Company, like a bankkeeps money in a deposit account. Investor can withdraw theshares or purchase more shares through this demat Account.

Dishonour of Cheque : Non-payment of a cheque by the paying

banker with a return memo giving reasons for the non-payment.

E-Banking : E-Banking or electronic banking is a form of bankingwhere funds are transferred through exchange of electronic signalsbetween banks and financial institution and customers ATMs, CreditCards, Debit Cards, International Cards, Internet Banking and newfund transfer devices like SWIFT, RTGS belong to this category.

EFT - (Electronic Fund Transfer) : EFT is a device to facilitateautomatic transmission and processing of messages as well asfunds from one bank branch to another bank branch and even fromone branch of a bank to a branch of another bank. EFT allowstransfer of funds electronically with debit and credit to relativeaccounts.

Either or Survivor : Refers to operation of the account opened intwo 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, issuecheques, 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.

Electronic Commerce (E-Commerce): E-Commerce is thepaperless commerce where the exchange of business takes placeby Electronic means.

Endorsement : When a Negotiable Instrument contains, on theback 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.

Endorsement in Blank : Where the name of the endorsee ortransferee is not mentioned on the instrument.

Endorsement in Full : Where the name of the endorsee ortransferee appears on the instrument while making endorsement.

Execution of Documents : Execution of documents is done byputting signature of the person, or affixing his thumb impression or putting signature with stamp or affixing common seal of thecompany on the documents with or without signatures of directorsas 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 difficultto realize money from the importer, he sells the right to receive

money at a discount to a forfaiter, who undertakes inherent politicaland commercial risks to finance the exporter, of course withassumption of a profit in the venture.

Forgery : when a material alteration is made on a document or aNegotiable 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 fundsto 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 outstandingdebt.

Guarantee : A contract between guarantor and beneficiary to

ensure performance of a promise or discharge the liability of a third

person. If promise is broken or not performed, the guarantor payscontracted 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 theparties. For example, if I give a cheque to my friend to withdrawmoney from my bank,he becomes holder of that cheque. Even if he

loses the cheque, he continues to be holder. Finder cannot becomethe holder.

Holder in due course : A person who receives a NegotiableInstrument for value, before it was due and in good faith, withoutnotice of any defect in it, he is called holder in due course as perNegotiable Instrument Act. In the earlier example if my friend lends

some money to me on the basis of the cheque, which I have givento him for encashment, he becomes holder-in-due course.

Hypothecation : Charge against property for an amount of debtwhere neither ownership nor possession is passed to the creditor. In

pledge, possession of property is passed on to the lender but inhypothecation, the property remains with the borrower in trust forthe lender.

Identification : When a person provides a document to a bank or isbeing identified by a person, who is known to the bank, it is calledidentification. Banks ask for identification before paying an ordercheque or a demand draft across the counter.

Indemnifier : When a person indemnifies or guarantees to makegood any loss caused to the lender from his actions or others'actions.

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Indemnity : Indemnity is a bond where the indemnifier undertakesto reimburse the beneficiary from any loss arising due to his actionsor 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 Courtsdeclare such persons insolvent. Banks do not open accounts ofinsolvent persons as they cannot enter into contract as per law.

Interest Warrant : When cheque is given by a company or anorganization in payment of interest on deposit , it is called interestwarrant. Interest warrant has all the characteristics of a cheque.

International Banking : involves more than two nations orcountries. 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 acustomer as the prospective customer has to be introduced by anexisting account holder or a staff member or by any other personknown to the bank for opening of account. If bank does not takeintroduction, it will amount to negligence and will not get protectionunder law.

JHF Account : Joint Hindu Family Account is account of a firmwhose business is carried out by Karta of the Joint family, acting forall the family members.. The family members have commonancestor and generally maintain a common residence and aresubject to common social, economic and religious regulations.

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Joint Account : When two or more individuals jointly open an

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 theundivided family.

Kiosk Banking : Doing banking from a cubicle from which food,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 theircustomers and to ensure that customers deal only in legitimatebanking operations and not in money laundering or frauds.

Law of Limitation : Limitation Act of 1963 fixes the limitation periodof debts and obligations including banks loans and advances. If theperiod fixed for particular debt or loan expires, one can not file a suitfor 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 extinguishthe right.

Lease Financing : Financing for the business of renting houses orlands for a specified period of time and also hiring out of an assetfor the duration of its economic life. Leasing of a car or heavymachinery 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 sumto a person named in Letter of Credit (usually exporter fromabroad). Letters of Credit are covered by rules framed underUniform Customs and Practices of Documentary Credits framed byInternational Chamber of Commerce in Paris.

Limited Companies Accounts : Accounts of companiesincorporated under the Companies Act, 1956 . A company may beprivate or public. Liability of the shareholders of a company isgenerally limited to the face value of shares held by them.

Mandate : Written authority issued by a customer to another personto act on his behalf, to sign cheques or to operate a bank account.

Material Alteration : Alteration in an instrument so as to alter thecharacter of an instrument for example when date, amount, name ofthe payee are altered or making a cheque payable to bearer froman 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 andempowerment of weaker sections in India. In micro finance, verysmall amounts are given as credit to poor in rural, semi-urban andurban 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 legalage of 18 years. As per Contract Act a minor cannot enter into acontract but as per Negotiable Instrument Act, a minor can draw,negotiate, endorse, receive payment on a Negotiable Instrument soas to bind all the persons, except himself. In order to boost theirdeposits many banks open minor accounts with some restrictions.

Mobile Banking : With the help of M-Banking or mobile banking

customer can check his bank balance, order a demand draft, stoppayment of a cheque, request for a cheque book and haveinformation about latest interest rates.

Money Laundering : When a customer uses banking channels to

cover up his suspicious and unlawful financial activities, it is calledmoney laundering.

Money Market : Money market is not an organized market like

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; ifthe affairs of the bank are not conducted as per banking norms.After moratorium R.B.I. and Government explore the options ofsafeguarding the interests of depositors by way of change inmanagement, amalgamation or take over or by other means.

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Mortgage : Transfer of an interest in specific immovable propertyfor the purpose of offering a security for taking a loan or advancefrom another. It may be existing or future debt or performance of anagreement 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 andregulates rural financing and also is responsible for developmentagriculture and rural industries.

Negotiation : In the context of banking, negotiation means an act oftransferring or assigning a money instrument from one person toanother person in the course of business.

Non-Fund Based Limits : Non-Fund Based Limits are those typeof limits where banker does not part with the funds but may have topart with funds in case of default by the borrowers, like guarantees, letter of credit and acceptance facility.

Non-Resident : A person who is not a resident of India is a

non-resident.

Non-Resident Accounts : Accounts of non-resident Indian citizens

opened and maintained as per R.B.I. Rules.

Notary Public : A Lawyer who is authorized by Government tocertify 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.

Off Balance Sheet Items : Those items which affect the financialposition of a business concern, but do not appear in the BalanceSheet E,g guarantees, letters of credit . The mention "off BalanceSheet items" is often found in Auditors Reports or DirectorsReports.

Online Banking : Banking through internet site of the bank which ismade interactive.

Pass Book : A record of all debit and credit entries in a customer's

account. Generally all banks issue pass books to SavingsBank/Current Account Holders.

Personal Identification Number (PIN) : Personal IdentificationNumber is a number which an ATM card holder has to key in beforehe is authorized to do any banking transaction in a ATM .

Plastic Money : Credit Cards, Debit Cards, ATM Cards andInternational Cards are considered plastic money as like moneythey 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 abanker for a credit limit. Pledge can be made in movable goodsonly.

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Post-Dated Cheque : A Cheque which bears the date which issubsequent to the date when it is drawn. For example, a chequedrawn on 8th of February, 2007 bears the date of 12th February,2007.

Power of Attorney : It is a document executed by one person -Donor or Principal, in favour of another person , Donee or Agent - to

act on behalf of the former, strictly as per authority given in thedocument.

Premature Withdrawals : Term deposits like Fixed Deposits, CallDeposits, Short Deposits and Recurring Deposits have to mature ona particular day. When these deposits are sought to be withdrawnbefore maturity , it is premature withdrawal.

Prime Lending Rate (PLR) : The rate at which banks lend to theirbest (prime) customers.

Priority Sector Advances : consist of loans and advances toAgriculture, Small Scale Industry, Small Road and Water TransportOperators, Retail Trade, Small Business with limits on investment in

equipments, professional and self employed persons, statesponsored organisations for lending to SC/ST, Educational Loans,Housing Finance up to certain limits, self-help groups and

consumption loans.

Promissory Note : Promissory Note is a promise / undertakinggiven 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 aresupposed to make assets classification . and make appropriateprovisions for likely losses in their balance sheets.

Public Sector Bank : A bank fully or partly owned by the

Government.

Rescheduling of Payment : Rearranging the repayment of a debtover a longer period than originally agreed upon due to financialdifficulties of the borrower.

Restrictive Endorsement : Where endorser desires thatinstrument is to be paid to particular person only, he restricts furthernegotiation or transfer by such words as "Pay to Ashok only". NowAshok cannot negotiate the instrument further.

Right of Appropriation : As per Section 59 of the Indian ContractAct, 1972 while making the payment, a debtor has the right to direct his creditor to appropriate such amount against discharge of someparticular debt. If the debtor does not do so, the banker can

appropriate the payment to any debt of his customer.

Right of Set-Off : When a banker combines two accounts in thename of the same customer and adjusts the debit balance in oneaccount with the credit balance in other account, it is called right ofset-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 theSavings Bank Account of the same customer, leaving a balance ofRs.25,000/- credit in the savings account.

Safe Custody : When articles of value like jewellery, boxes, shares, debentures, Government bonds, Wills or other documents orarticles 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 suchsafe custody.

Savings Bank Account : All banks in India are having the facility of

opening savings bank account with a nominal balance. This accountis used for personal purposes and not for business purpose andthere are certain restrictions on withdrawals from this type ofaccount. 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 thisagreement.

Universal Banking : When Banks and Financial Institutions are

allowed to undertake all types of activities related to banking likeacceptance of deposits, granting of advances, investment, issue ofcredit cards, project finance, venture capital finance, foreign

exchange business, insurance etc. it is called Universal Banking.

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Virtual Banking : Virtual banking is also called internet banking,through which financial and banking services are accessed viainternet's world wide web. It is called virtual banking because aninternet bank has no boundaries of brick and mortar and it existsonly on the internet.

Wholesale Banking : Wholesale banking is different from RetailBanking 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) 26b) 27c) 28d) 29e) None of these

2) At present number of private sector banks inIndia: a) 21b) 22c) 23d) 24e) None of these

3) Nationalisation of 14 major banks in…………………..a) 1949b) 1955c) 1959d) 1969e) None of these

4) Nationalisation of six banks in…………………………..a) ) 1949b) 1955c) 1959d) 1969

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e) 1980

5)The largest commercial bank inIndia:a) SBIb) ICICI Bankc) PNBd) HDFC Banke) None of these

6) The Second largest public sector commercial bank inIndia: a) Punjab National Bankb) Bank of Barodac) Bank of Indiad) IDBI Banke) Corporation Bank

7) The Largest private sector commercial bank inIndia:a) AXIS Bankb) HDFC Bankc) ICICI Bankd) Federal Banke) None of these

8) The second largest private sector commercial bank inIndia:a) IDBI Bankb) AXIS Bankc) HDFC Bankd) ICICI Banke) None of these

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9) The first Indian bank to open a branch outsideIndiainLondonin

1946:a) State Bank of Indiab) Punjab National Bankc) Bank of Barodad) Canara Banke) Bank of India

10) Latest Public Sector Bank inIndia:a) SBIb) ICICI Bankc) HDFC Bankd) IDBI Banke) None of these

11) Latest Private Sector Bank inIndia:a) Federal Bankb) South Indian Bankc) YES Bankd) Kotak Mahindra Banke) None of these

12) The Largest foreign bank operating inIndia:a) Citi Bankb) HSBCc) Barclays Bankd) ABN Amro Banke) Standard Chartered Bank

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13) Which bank is the largest issuer of credit cards inIndia?a) SBIb) ICICI Bankc) HDFC Bankd) IDBI Banke) None of these

14) Who is the current MD & CEO of ICICI Bank?a) Shyamala Gopinathb) Shikha Sharmac) Chanda Kochhard) Renu Challue) Sushma Nath

15) The Chairman of Indian Banks Association(IBA) (For 2011-12):a) M.D.Mallyab) Pratip Chaudhuric) D.Subbaraod) Subir Gokarne) 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 AGd) BNP Paribase) DBS Bank

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17) Bad loans in banking terminology are generally known

as…………………a) CBSb) PLRc) NPAsd) CRRe) None of these

18) In Financial Term NPA, P stands for………..a) Potentialb) Peformingc) Prodictiond) Professionale) None of these

19) Which of the following pairings is wrong? (Bank & Country)a) Citi Bank : USAb) ABN AMRO Bank : TheNetherlandsc) BNP Paribas :Russiad) Hongkong and Shanghai Banking Corporation(HSBC) :UnitedKingdome) Deutsche Bank AG :Germany

20) Which of the following pairings is wrong? (Bank & Country)a) Barclays Bank : United Kingdomb) J P Morgan Chase Bank :USAc) Societe Generale :Franced) Standard Chartered Bank :South Africae) Sonali Bank :Bangladesh

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21) The New Capital Adequacy Framework prescribed for the banksis commonly known as ………….a)KYC normsb)Credit Policyc)Basel Accordd)Fiscal Policye) None of these

22) The central bank of theUnited States:a) Citi Groupb) Bank ofAmericac) JP Morgan Chased) Federal Reservee) Bank for International Settlements

23) Which of the following pairings is wrong? (Bank & Tagline)a) State Bank ofIndia: With you all the wayb) Punjab National Bank : The name you can BANK upon!c) Bank ofBaroda:India’s International Bankd) 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 Bankb) HDFC Bankc) YES Bankd) ICICI Banke) UTI Bank

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25) Which of the following is not a commercial bank?

a) IDBI Bankb) HDFC Bankc) ICICI Bankd) EXIM Banke) AXIS Bank

26) Which of the following pairings is wrong?(Bank/FinancialInstitution & Establishment Year)a) RBI : April 1, 1935b) SBI : July 1, 1955c) NABARD : July 12, 1982d) NHB : July 9, 1988e) SIDBI : April 1, 1990

27) The largest bank inPakistan:a) State Bank of Pakistan

b) Habib Bank Limitedc) Sonali Bankd) DBS Banke) None of these

28) Consider the following sentences:A. Non Performing Asset (NPA) is an asset, including a leasedasset, becomes non performing when it ceases to generate incomefor 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 andinformation technology are merged to suitcore needs of banking is known as Core Banking Solutions. C. Banking Ombudsman is an independent dispute resolutionauthority 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 allowedto charge from its customers. Unlessmandated by the government, RBI rule stipulates that no bank can

offer loans at a rate lower than baseRate to any of its customers.E. NBFC or Non Banking Financial Companies is a company

inIndia, which is registered under theCompanies 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 & Bb) Only B & Cc) Only C & Dd) Only D & Ee) All are correct

29) Which of the following is the Apex level institution for housing?a) EXIM Bankb) NABARDc) NHBd) SIDBIe) None of these

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30) Which of the following is not a nationalized bank?a) PNBb) Indian Bankc) Bank of Indiad) Karnataka Banke) Canara Bank

31) Which of the following banks was merged with ICICI Bank in2010?a) Bank of Rajasthanb) Bank of Maharashtrac) Karnataka Bankd) State Bank ofIndoree) Global Trust Bank

32) Which of the following banks was merged with SBI in 2010?

a) State Bank of Travancoreb) State Bank of Mysorec) State Bank of Indored) State Bank of Saurashtrae) State Bank of Hyderabad

ANSWERS1) a 2) b 3) d 4) e 5)a 6)a 7) c8) c 9) e 10) d11) c 12) e 13) b 14) c 15) a 16) a 17) c18) b 19) c 20) d21) c 22) d 23) e 24) e 25) d 26) e 27) b

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28) e 29) c 30) d 31) a 32)c

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