Banking awareness test 01

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Ok now take out your pen & paper & start this test. It has 53 ques.. you’ve 30 minutes. I am calling it Banking / 01/ 05.07.2014.. once finished find answers on http://bank-exam-notes.blogspot.in/2014/07/answer-keys-to-banking-01-05072014.html


You may comment your scores... 3. 2. 1.


1) RBI established on ____ ?
a) 1st June 1935
b) 1st April 1935
c) 1st June 1934
d) 1st April 1934

2) RBI was established on the recommendations of ____ commission?
a) Central bank of British India Commission
b) John Hilton Young Commission
c) Bank of England Commission
d) Norman Commission
e) Sir Osborne Smith commission

3) RBI was nationalised wef ___ ?
a) 01 Jan 1949
b) 01 June 1949
c) 01 Mar 1949
d) 15 Aug 1947
e) none of these

4) RBI's central office is situated in ___ ?
a) Delhi
b) Mumbai
c) Kolkata
d) Chennai

5) Which of the following(s) is/are function/powers of RBI?
i) Managment of public debt
ii) lender of last resort to banks
iii) grants license to carry on banking business
iv) RBI fixes interest rates on SB

a) ii only
b) i & ii only
c) iii only
d) i, ii & iii only
e) all of the above

6) Which of the following(s) is/are Negotiable Instrument?
i) Promissory note
ii) Bill of exchange
iii) Cheque payable to order or bearer
iv) Currency note

a) i only
b) i & ii only
c) ii & iii only
d) i, ii & iii only
e) all of the above.

7) Which of a following is not a Commercial Bank ?
(A) Reserve Bank of India
(B) State Bank of India
(C) Canara Bank
(D) Oriental Bank of Commerce

8) Which of the following(s) is/are true of Bearer cheque?
i) it is payable to the person who presents it to the bank for encashment or a/c transfer
ii) these cheques are risky, as it could be misused if lost
iii) it is payable to any person who presents it for payment at the bank counter
iv) such cheques are not permitted by RBI

a) iv only
b) i & ii only
c) i, ii & iii only
d) all of the above

9) Which of the following(s) is/are true of Order cheque?
i) it is payable to a particular person only
ii) these cheques can be encashed over the counter by any person - hence the name 'order'
iii) In India order cheques are rarely used
iv) Banks don't encourage such cheques as it restricts payments system of the country

a) iv only
b) iii & iv only
c) ii only
d) i only

10) Full form of CTS?
a) clearing Truncation system
b) cheque transaction system
c) cheque truncation system
d) checking truncation system

11)  What is Cheque Truncation?
a) instead of physical cheque, image is transmitted to the drawee bank branch
b) movement of physical cheques to nearest clearing houses in efficient way
c) discourage use of cheques & move to epayment system
d) sorting of cheques as per their banks according to the MICR codes by machines


12) Which of the following(s) is/are true of CTS 2010?
i) it will speed up the process of cheque clearance.
ii) eliminates the time, money and manpower wasted during physical movement of cheques.
iii) it enhances the scope for clearing-related frauds as earlier each bank had its own security features on the cheque.
iv) in 2010, RBI came up with the guidelines for CTS.

a) i only
b) i & ii only
c) iv only
d) i, ii & iv only

13) A Banker's cheque issued by SBI is valid only for ___ months?
a) 2 months
b) 4 months
c) 3 months
d) 6 months

14) A Mutilated Cheque is ___ ?
a) e-cheques
b) new form of cheques encouraged by banks
c) a cheque torn in two or more pieces
d) a stale cheque


15)India’s First Financial Archive has been set up at—
(1) Mumbai
(2) New Delhi
(3) Ahmadabad
(4) Kolkata
(5) None of these

16) Which of the following(s) is/are true?
i) an 'Uncrossed/open' cheque can be paid across counter or by account transfer
ii) two parallel lines on the left corner of the cheque makes it a crossed cheque
iii) a crossed cheque is payable by account transfer only
iv) a crossed cheque can be paid in cash

a) i & ii only
b) i, ii & iv only
c) i, ii & iii only
d) all of the above

17) Which of the following(s) is/are true of Electronic cheques?
i) its exact mirror image of paper cheque
ii) its generated in a secured system only
iii) its scanned form of a physical cheque
iv) digital signature is used to sign it

a) iii only
b) i & ii only
c) i & iv only
d) i, ii & iv only


18) Currency notes are not Promissory notes?
a) True
b) False
c) Currency notes of Rs 1 denomination are not P-notes as they are issued by Govt
d) depends on the denomination of the note

19) Cash can't be accepted by banks for issuing Demand Drafts above Rs 50,000/-. Why?
a) DD can be issued against cash payments of upto Rs 1 lac.
b) to avoid banks being used by unscruplous elements for money laundering
c) to encourage electronic transfer of money
d) to inculcate financial discipline among general public & use of SB a/cs.

20) For the purpose of KYC, a customer may be defined as ...?
a) only Savings account holders of a bank
b) Savings & loan account holders only
c) beneficial owners only
d) any person or entity connected with any financial transaction

21) Banks are required to maintain secrecy of customer's account?
a) no such restriction, banks can share info freely with others
b) banks can disclose affairs of customers if deemed reasonable
c) to maintain secrecy of a/cs is a legal duty
d) Info can be shared on case-by-case basis

22) Match following correctly:
i) Garnishee order - issued by court
ii) Attachment oder - issued by Income Tax authorities
iii) Garnishee order - issued by Income Tax authorities
iv) Attachment oder - issued by court

a) i & ii only
b) i & iv only
c) i only
d) iii & iv only


23) When a contract is 'void ab initio' what does it mean?
a) No contract exists from beginning
b) contract ceases if any stipulation voilated
c) contract ends from the day any of its terms are unacceptable to any party
d) none of these

24) Max no. of partners in a Partnership firm involved in banking business?
a) 5
b) 7
c) 10
d) 20

25) What does 'Ultra Vires' means?
a) Beyond the powers
b) latest ultra violet machine to detect fake notes
c) define ultra rich people
d) Wire transfer method

26) A deposit account can be closed by ___ ?
a) customer only
b) customer &/or bank
c) customer &/or bank after giving due notice
d) can't be closed, its perpetual

27) First Governer of RBI?
a) Sir James Braid Taylor
b) Sir C D Deshmukh
c) H V R Iengar
d) Sir Osborne Smith

28) First Indian Governer of RBI?
a) Sir Osborne Smith
b) H V R Iengar
c) C D Deshmukh
d) Sir Benegal Rama Rau

29) Talwar Committee in banking was related to ?
a) Expansion of banking in rural areas
b) FDI in banking
c) Customer service
d) NPA in banking

30) Banking Ombudsman scheme is related to ?
a) resolution of complaints related to banking services through conciliation & mediation
b) NPA resolution by compromise
c) providing cheap banking services to low-income group
d) none of these

31) Banking Ombudsman scheme covers which of the following?
a) all commercial banks
b) comercial & RRB banks
c) all comercial & scheduled primary co-operative banks
d) all of the above i.e. commercial, RRB & scheduled primary co-operative banks

32) Complaints older than ___ months after receipt of bank's reply are not taken up by Banking Ombudsman?
a) 6months
b) 10 months
c) 12 months
d) 24 months

33) Who can be an Ombudsman?
a) ex-banker from any scheduled bank
b) appointed by Lead bank
c) well-known economist or banker
d) CGM/GM from RBI

34) Complaints can be filed in Ombudsman by whom?
i) through any advocate on behalf of the aggrieved person only
ii) by the aggrieved person himself only
iii) authorised representative of the aggrieved person only
iv) by the aggrieved person or his advocate

a) i & ii only
b) ii only
c) iv  only
d) ii & iii only

35) Banking Ombudsman gives award or reject a complaint within __?
a) 15 days
b) 7 days
c) 30 days
d) 90 days

36) Max amount of compensation that can be awarded by Ombudsman?
a) 1lac
b) No such limit
c) 10 lacs
d) 20 lacs

37) 'Banking code for Customer Service' released by BCSBI (Banking codes & Standard Board of India) are ___ ?
a) Mandatory rules for all banks
b) Voluntary code for banks
c) some parts are mandatory for all banks
d) mandatory for scheduled banks only

38) Consumer Protection Act 2002 is applicable for ?
i) Banking sector
ii) Insurance sector
iii) all goods & service providers
iv) Private service providers

a) i only
b) i & ii only
c) iv only
d) all of these

39) Which of the following transactions are reported to FIU- IND (Finance Intelligence Unit - India)?
i) CTR
ii) DTR
iii) LTR
iv) STR

a) i only
b) i & ii only
c) i & iv only
d) all of these

40) Which is true about CTR?
i) Large cash transaction of above Rs 10 lac is reported
ii) Large cash transaction of above Rs 1 lac is reported
iii) CTR should be submitted by 15th of succeeding month
iv) individual transaction below Rs 50,000/- may not be included

a) i only
b) i & iii only
c) ii & iii only
d) i, iii & iv only


41) Which is true about STR?
i) suspicious transaction report is based on cash only
ii) report furnished to FIU within 7 days of confirmation of sucpicious transaction
iii) Banks should put restrictions on accounts where suspicious transaction is reported
iv) suspicious transaction report is based on cash or non-cash activity

a) i & ii only
b) i, ii & iii only
c) ii, ii & iv only
d) ii & iv only

42) In which of the following accounts do nomination facility exists?
i) Deposit a/cs
ii) Safe deposit of articles
iii) Lockers
iv) Loans

a) i only
b) i & ii only
c) i, ii & iii only
d) all of these

43) TDS is payable on which account(S)?
i) Savings account
ii) Fixed deposits
iii) Recurring deposits

a) ii only
b) i & ii only
c) ii & iii only
d) all of these

44) TDS is deducted if aggregated amount of Interest per financial year exceeds __?
a) 1000/-
b) 5000/-
c) 10000/-
d) 20000/-

45) Which is/are true about Service tax?
i) its an Indirect tax
ii) rate of ST is 12.36% (12% + 2% Edu cess + 1% secondary & higher edu cess)
iii) its a direct tax
iv) small service provider with turnover up to Rs 10lacs exempted

a) i & ii only
b) ii & iii only
c) ii only
d) i, ii & iv only

46) STT - Security Transaction Tax - is levied for purchasing shares on delivery basis. Rate is ..?
a) 0.1%
b) 0.0125%
c) 0.125%
d) 0.01%

47) A savings/current account is tagged "Inoperative or Dormant" if its not operational by customer for a period of
 ...?
a) 12 months
b) 6months
c) 24 months
d) 18 months

48) Amount of Total unclaimed deposits lying with all scheduled commercial banks at the end of December 2012?
a) 1156 crore
b) around 2000 crore
c) 3652 crore
d) 2562 crore

49) Which of the following is true of 'Depositor Education and Awareness Fund (DEAF)'
i) banks should remit unclaimed deposits only - to the fund
ii) banks should remit unclaimed deposits alongwith interest accrued to the fund
iii) DEAF was first announced in the annual monetary policy by RBI in May, 2013
iv) banks should transfer amounts becoming due in each calendar month on the last working day of the subsequent month

a) i only
b) i & iii only
c) ii & iv only
d) ii, iii & iv only

50) What are 'Unclaimed deposits'?
a) an account which is not operated for 10 years
b) an account not operated for 2 years
c) an account not operated for 12 years
d) an account not operated for 10 months

51) What are 'Notice Deposits'?
a) Term Deposit for a specific period but withdrawable on giving at least one complete banking day's notice
b) another name for Savings account
c) another name for current account
d) Normal Fixed Deposits in banks for short duration

52) Which of the following(s) is/are true about interests on Savings bank (SB) a/c?
i) RBI deregulated SB interest rate wef 25 Oct 2011
ii) Interest on SB can be paid on Quaterly basis or longer period
iii) Banks must offer uniform interest rates on deposits of upto Rs 1 lacs, thereafter differential rates can be given.
iv) Wef April 1, 2010 payment of interest on savings a/c would be calculated on a daily product basis

a) i only
b) i, ii only
c) i,ii & iii only
d) i, iii & iv only

53) Which is true about PPF a/c?
i) Tenure of PPF a/c is 15 year.
ii) current interest rate is 8.7% p.a
iii) you can invest min 500 & max 1lacs per FY
iv) Scheme is available to Residents, NRIs

a) i only
b) i & iii only
c) i, ii & iii only
d) all of these


Answer keys to Banking / 01/ 05.07.2014

Answer keys to Banking / 01/ 05.07.2014


1. B. 1st April 1935
2. B. John Hilton Young Commission also 'Royal commission on Indian currency & Finance'
3. A. 01 Jan 1949
4. B. Mumbai
5. d) i, ii & iii only. Banks are free to decide SB rates. Some offer 4%, few 6%.
6. d) i, ii & iii only. Negotiablity means valid transferability of the said instruments. Currency not Negotiable.
7. (A) Reserve Bank of India
8. c) i, ii & iii only
9. d) i only. When you write 'order' on the cheque or delete 'bearer' out of the 2 words mentioned then it becomes order cheque. safe method on issuing chq. Payee can give it to someone else by signing his/her name on backside (officially called endorsement).
10) c) cheque truncation system
11. a) instead of physical cheque, image is transmitted to the drawee bank branch
12. d) i, ii & iv only. RBI has brought unique security features like bar codes, encrypted codes, logos, watermarks, holograms on CTS cheques - they are secure & fraud proof.
13. c) 3 months. All cheques/DD/BC have validity of 3months. Expired cheque is also known as Stale cheque.
14. c) a cheque torn in two or more pieces. It can be paid - after getting confirmation from drawer.
15. (4) Kolkata
16. c) i, ii & iii only
17. d) i, ii & iv only
18. a) True
19. b) to avoid banks being used by unscruplous elements for money laundering
20. d) any person or entity connected with any financial transaction
21. c) to maintain secrecy of a/cs is a legal duty
22. a) i & ii only
23. a) No contract exists from beginning
24. c) 10
25. a) Beyond the powers (Bank can't go beyond the scope of their objects)
26. c) customer & bank after giving due notice
27) d) Sir Osborne Smith
28) c) C D Deshmukh
29) c) Customer service
30) a) resolution of complaints related to banking services through conciliation & mediation
31) d) all of the above i.e. commercial, RRB & scheduled primary co-operative banks
32) c) 12 months
33) d) CGM/GM from RBI
34) d) ii & iii only
35) c) 30 days
36) c) 10 lacs. Award may be actual loss suffered or 10 lacs whichever is lower.
37) b) Voluntary code
38) d) all of these. CPA is applicable to all goods & service providers, private or public.
39) c) i & iv only. CTR= Cash transaction report. STR = Suspicious transaction report.
40) d) i, iii & iv only.
41) d) ii & iv only. Banks should not put restriction on accounts where suspicious transactions are identified.
42) c) i, ii & iii only
43) a) ii only. TDS is not deducted on NRE (non resident external) a/cs also
44) c) 10000/-. Per financial year per branch.
45) d) i, ii & iv only
46) d) 0.01%
47) c) 24 months. No penalty if minimum balance not kept in dormant bank account.
48) c) 3652 crore
49) d) ii, iii & iv only
50) a) an account is not operated for 10 years. Banks are supposed to locate them & properly discharge the balance if party is found... otherwise remit it to the fund - along with interest.
51) a) Term Deposit for a specific period but withdrawable on giving at least one complete banking day's notice
52) d) i, iii & iv only. Banks are now free to give interest shorter duration also (both SB & FD). 'Daily product basis' means banks will have to pay interest on the daily minimum balance in SB a/c.
53) c) i, ii & iii only





MCQs on Finance

Best of luck !

1) Which is the Currency of Malaysia?
a) Malaysian Dollor b) Bhat c) Ringgit d) lira e) Rupiah

2) Which of the following is true about Convertibility of Rupee?
i) Rupee is fully convertible on the current account.
ii) Rupee is partially convertible on the capital account.
iii) Rupee is partially convertible on the current account.
iv) Rupee is non-convertible on the capital account.

a) i & ii only
b) i & iv only
c) ii & iii only
d) none of these

3) Full form of AUM?
a) All under management
b) All asset under-manageable
c) Assets under management
d) Always under management

4) What does full current account convertability of Rupee means?
i) Residents can make & recieve trade related payments in foreign currency & vice-versa.
ii) Can convert local financial assets into foreign assets.
iii) residents can purchase real estate abroad.
iv) for education & tourism purpose Rupee can be converted in restricted manner only.
v) Indian companies can buy foreign companies without restrictions out of Indian resources.

a) i & iii only
b) i, ii & v only
c) ii & iv only
d) i & iv only

5) In stock market parlance what does the term 'bearish' associated to?
a) index in upward trend
b) index in downward trend
c) index volatile & moving both ways
d) index showing not much activity.

6) Expand CAD?
a) Capital account deficit
b) Concurrent audit
c) Current Account deficit.
d) Convertible account deficit.

7) BSE's stock market index - Sensex is based on __ no. of large companies/scrips?
a) 25
b) 30
c) 50
d) 100

8) In stock market parlance what does the term 'short' associated to?
a) a trader sell a scrip/co. first & buys it later.
b) a trader short on money.
c) time period of 5 mins before the market closes.
d) a trader buys a scrip first & sells it later.

9) Which of the following is true about Derivatives?
i) They derive their value from an underlying asset.
ii) Its basically a financial contract refering future price.
iii) They are used to hedge risk in a transaction or for speculation purpose.
iv) They are available in OTC (Over-the-counter) market as well as Exchanges like NSE.

a) i only
b) i & ii only
c) i, ii & iii only
d) All the above.

10) Which of the following is true about Options?
i) they are basically derivative products only.
ii) there is no obligation to honor the contract.
iii) Premium is paid for not honoring the contract.
iv) 'Call option' gives holder right to sell underlying asset at prefixed rate.
v) 'Put option' gives holder right to buy underlying asset at prefixed rate.

a) i, ii only
b) i, ii & iii only.
c) i, iv & v only
d) all the above.

11) Which of the following is true about Futures?
i) these are derivatives products only.
ii) there is no obligation to honor the contract.
iii) they are listed on an exchange.
iv) they are used for hedging & speculation.

a) i & ii only
b) i, iii  & iv only
c) i & iii only
d) all the above.

12) Which of the following is true about Forward Contracts?
i) they are Over-the-counter derivative products
ii) traded on one-to-one basis among parties & mutually agreed terms.
iii) its used for hedging risk
iv) they are listed on an exchange.

a) i only
b) i & ii only
c) ii, iii & iv only
d) i, ii & iii only

13) Which of the following is true about recent Interest Rate Futures contract launched in India?
i) underlying security is either 10 year GoI bond (G-sec) or 91 day T-bill.
ii) contract to buy or sell a debt instrument.
iii) these are non-standard OTC contracts
iv) these are standaridized contracts available on MCX-FX, NSE & BSE.
v) they are basically derivative products only

a) i & v only
b) i, ii, iv & v only
c) i, ii, iii & v only
d) all the above.

14) Which of the following is true about Hedge funds?
i) they are meant for ultra rich individuals.
ii) they invest very aggressively in any class, from G-sec to any exotic derivatives.
iii) they can charge upto 20% of net profit, and do not share losses.
iv) they are virtually unregulated
v) they can market publicly.

a) i, ii only
b) i, ii & iv only
c) i, ii, iii & iv only
d) all the above

15) Which of the following is true about Swaps?
i) Swap is an exchange of cash-flows.
ii) in an Interest-rate swap, basis for calculation of Interest is changed e.g. from floating to fixed or vice-versa.
iii) in Currency Swap, cash flow of one currency is changed to another currency.
iv) Swaps are used to hedge currency & interest rate risks.

a) i only
b) i & ii only
c) i & iv only
d) all of above.

16) Which of the following is true about Volatility Index (Vix)?
i) It captures mood of the market, high volatility is associated with fall in market.
ii) If Vix more than 30%, stock market investors are in fear zone.
iii) A low Vix associated with price rise.
iv) India Vix is based only Nifty 50 Option prices.

a) i & iii only
b) iv only
c) ii & iii only
d) all the above.

17) Whats REIT?
a) REal IT
b) Realistic Infra Technology fund
c) Reference for IT index
d) Real Estate Investment Trust

18) Full form of EURIBOR?
a) EUropean reference for labor market
b) EU's bechmark index
c) Euro Inter-Bank offered rate.
d) EU libor rate

19) 50 basis points means?
a) 5.00 %
b) 0.50 %
c) 0.05%
d) 50.00 %

20) What is meant by Arbitrage?
a) its nothing but name of a movie.
b) practice of taking advantage of a price difference between two or more markets.
c) hedging practice
d) an pre-budget activity.


Tip: boost memory and clear govt exams


Ans:
1) C. Thailand- Bhat. Turkey- Lira. Indonesia- Rupiah.
2) A.
3) C.
4) D.
5) B. And the term "Bullish" refers when Index is in upward trend.
6) C.
7) 30. NSE's Nifty is based on 50 large companies.
8) A. The term 'Long' refers to "buy first, sell later".
9) D. Derivative products includes OTC (forward contracts), Futures (forward contracts on exchanges), Options, Swaps
10) B. Options as the name suggests has no obligation. Call option is right to buy (think you are calling for price), Put option is right to sell (think you are putting 'it' on OLX to sell).
11) B. Furutes have obligation to honor the contract, think of it as buying/selling shares on NSE - you can't go back on trade you've done.
12) D.
13. B. IRF was recently re-launched for 3rd time in India.
14) C. Hedge funds can't market publicly.
15) D.
16) D.
17) D.
18) C.
19) B.
20) B.

MCQs for rbi


1. Currency chest is the property of ____ ?
A. RBI. b) SBI. C) GoI d) Lead bank of the area. e) Bank itself.

2. Which dept of RBI oversees designing of banknotes in India?
a) Dept of banknotes b) Dept of rupee management c) Dept of banking affairs d) Dept of Currency management e) none of these.

3. Where is not a currency printing press located ?
a) Dewas (MP) b) Salboni (WB) c) Nasik d) Mysore e) Mumbai

4. Where is not a coin mint located from below ?
a) Noida b) Delhi c) Hyderabad d) Mumbai e) Calcutta

5. Banknotes & Rs.1 coins can be used to pay any sum upto _____?
a) no such limit b) Rs 1 lacs. c) 1 crore, d) 1.50 lacs

6) 50 Paisa coins can be used to pay/ settle any sum upto ____?
a) Rs Two. b) Rs Five. c) Rs Ten. d) Rs One hundred.

7) Which of the following is true of RBI's balance sheet?
a) RBI's balance sheet is a sum of 2 major Dept i.e. Issue Dept & Banking dept.
b) RBI's annual year closes on 30 june.
c) Currency circulation is backed by 3 major assets of Issue dept ie. Gold, foreign & Rupee security.
d) CRR balances, Open Market Operations, Loans to Govt etc comes under Banking dept's Balance sheet.
e) all of the above.

8) What is KYC?
a) to verify the identity of customers.
b) budget related activity of an organisation.
c) effort to convert black money into white money.
d) legal ways to harass poor customers.
d) none of these.

9) Payment system of the country include which of the following?
i) Cheques. ii) Credit cards. iii) Currency. iv) Electronic transfers

a) i only
b) i & iii only
c) i, ii & iii only
d) all of these

10) Which of the following is not true about WMA - Ways & Means Advance by RBI to State Govts.
a) Short-term finance to state govt to tide over temporary mismatches  in cash flow.
b) non interest-bearing limits
c) if WMA limits are exceeded, its called 'Overdraft' - allowed for few days only.
d) These limits are without any security.
e) B & D


ANS:
1) A. RBI. CC is extension of Issue Dept of RBI.
2) D. This dept essentially oversees work of issue & retrieval of currency. This is performed through 18 issue offices.
3) E. Dewas & Nasik presses' are Govt owned. Salboni & Mysore are owned by RBI, through its wholly owned subsidiary, the Bharatiya Reserve Bank Note Mudran Ltd. (BRBNML).
4) B.
5) A.
6) C.
7) E.
8) A. Know Your Customer.
9) D.
10. B. State govts have to pay interest on these limits.

MCQs on banking

MCQs from various sources important for exams. Answer key is available at the end.

1) What is GAGAN Project developed with the help of ISRO?
a) It's ambitious plan of Indian airforce to develop next generation fighter planes by 2020.
b) It's satellite based system by AAI, to navigate & guide aircrafts over India, Bay of Bengal, South-East Asia & Middle East expanding upto Africa.
c) It's domestic version of GPS.
d) Advance weather forecasting system to be developed with the help of NASA.

2) Match the following correctly.
i. TS Vijayan, ii. UK Sinha, iii. Ila Patnaik, iv. Raghuram Rajan, v. Ramesh Abhishek
A) RBI, B) FMC, C) IRDA, D) SEBI, E) Principal Economic Advisor

(a) i-C, ii-D, iii-E, iv-A, v-B.
(b) i-C, ii-D, iii-B, iv-A, v-E
(c) i-C, ii-E, iii-D, iv-A, v-B
(d) i-D, ii-E, iii-B, iv-A, v-C.

3. Who is not Dy. Governor of RBI from below?
a) Urjit Patel, b) R. Gandhi, c) H R Khan, d) Anand Sinha

4) A Dy. Governor of RBI is appointed for a period of ____?
a) 3 years, b) 4 years, c) 5 years, d) 6 yrs, e) no such limit.

5) Name the youngest governor of RBI.
a) Raghuram Rajan. b) Bimal Jalan. c) YV Reddy. d) SS Tarapore. e) CD Deshmukh

6) Which of the following book is written by Sh Raghuram Rajan?
a) Saving Capitalism, b) Irrational Exuberance, c) The Alchemy of Finance, d) Saving the world, e) none of these

7) Autobiography of actor Dilip Kumar?
a) My Journey through Bollywood. b) Black & White to Colored Cinema. c) 100 years 0f Indian Cinema. d) The Substance and the Shadow. e) The man of substance.


8) When is World environment day?
a) 2 june, b) 3 june, c) 5 july, d) 1 Aug, e) 5 june.

9) Official Mascot of FIFA 2014 is ___?
a) Blu Macaw. b) Zakumi. c) Goleo. d) Fuleco. e) Striker.

10) Who heads 14th Finance Commission?
a) Vijay Kelkar. b) YV Reddy. c) Raghuram Rajan. d) Bimal Jalan.

11) What is 'Cash Recyclers' machine?
a) ATMs that can accept & dispense cash too. b) Recycling machine for soiled notes. c) Note sorting machine. d) Note counting machine.

12) Which of the following is true?
a) Minors above 10 can open & operate Savings account independetely with cheque book & ATM facility.
b) For the purpose of KYC, a bank account can be opened with just one address proof, which can be either permanent or local.
c) All scheduled commercial banks to deploy only “talking ATMs” starting 1 July.
d) all of these.




Ans:
1. B. GPS-Aided Geo Augmented Navigation (GAGAN)
2. A.
3. D.
4. C.
5. E.
6. A. Other being ‘Fault Lines: How Hidden Fractures Still Threaten the World Economy’.
7. D.
8. E.
9. D.
10. B.
11. A.
12. D.

MCQ on Indian economy on eve of Independence


MCQs made on 'Indian economy on the eve of Independence' Chapter 2 of Datt & Sundharam Eco book

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Let's start:
Take a paper & write ans first. Check your progress with answers given at the end. Good luck.

1) Throughout the colonial period there was a generation of a large export ________?
a) Deficit b) surplus c) no conclusive data available

2) Life expectancy during colonial period in India?
a) 30yrs b)50 yrs c) 60 yrs d) 63yrs

3) Muslin which had its origin in Bengal had enjoyed world wide market in Pre-Colonial period. Indian 'Daccai Muslin' had gained fame for its exquisite quality. What is muslin?
a) very fine quality jute ropes b) silk textile (c) a type of cotton textile (d) an exquisite gem stone e) none of these

4) Jute is 2nd most important vegetable fiber after cotton, in terms of usage & global production. Jute is also known as ______?
a) Brown Fiber b) Affordable fiber  c) Yellow fiber d) Golden Fiber e) none of these

5) What is meant by 'progressive ruralization' or 'deindustrialization of India' which characterized colonial rule?
a) There was no industries till colonial period to deindustrialize. b) rural areas were made more progressive to export more raw materials back to UK. c) the trend of growing proportion of the working force in agriculture. d) none of these.

6) The largest source of revenue for Britishers in India was from ______?
a) Textile & Jute industry b) Gems & stone industry. c) Temple tax d) Land revenue e) none of these.

7) In order to bring stability in Agriculture the Britishers introduced land settlement in 1773. Where was it first introduced?
a) fertile lands of Punjab province b) Bombay province c) all directly British ruled areas d) Bengal e) none of these.

8) To enhance land returns a type of 'permanent settlement' which raised the status of revenue collectors to that of Private landlords introduced in Bengal by Britishers is called _____ ?
a) Ryotwari settlement b) Zamindari system c) Bengal Land settlement system d) none of these.

9) Permanent settlement system was brain-child of ______?
a) Philip Francis, English MP in House of Commons. b) William Bentick. c) Warren Hastings. d) Lord Cornwallis. e) none of these

10) How is Ryotwari system introduced by Britishers in large parts of Bombay, Madras, north-eastern & north-western parts of India is different from Zamindari system?
a) Land revenues were excessive in former.
b) Just the name was different for easy understanding by locals otherwise both systems were same.
c) Under Ryotwari system revenues can be collected in both cash & kind.
d) Each peasant holding a plot of land was recognised as landlord & was directly responsible to state for annual land revenue payment.


11) With completion of Industrial revolution in UK during 1850-1947, raw matarials like cotton, jute, sugarcane etc. were in high demand by UK's industry. So much was the policy conditions & high market price that the farmers started production of crops for industrial sale rather than for family consumption, this was called _______?

a) Modernisation of Indian Agriculture b) Commercialisation of Indian Agriculture c) its nothing but 'normal sales of Marketable surplus'. d) Marketed surplus. e) none of these.


12) Which of the following(s) is/are cause(s) of slow growth of private enterprises in India's industrialization (1850-1957)?
a) Unimaginative private enterprise, short-sighted Indian industrialists.
b) complete absense of financial institutions to help transfer of savings to industrial investment.
c) Banking was not highly developed & was more concerned with commerce rather than industry.
d) Lack of support from British government e) all of these

13) The company agents who would sign bonds with local artisans to deliver cotton & silk fabrics much below market price are called
a) Gomastas b) Izaredars c) Thakurs d) Seths e) none of these.

14) What among the following(s) did not characterize "Imperial Preference" clause in the Policy of Discriminating protection adopted by Britishers in response to Indian National Movement?
a) Imports from UK has no/zero duties, while exports to UK are preferred.
b) to help Indian business to undertake investments in India.
c) to help British capital find safe & secure avenues of Investment in India.
d) to help maintain British trade monopoly in India & stop any other country to enter the Indian market. e) all of these.

15) RBI's first census of India's foreign Assets & Liability as on 30 June 1948 revealed total foreign business investments of Rs 302 cr, out of it what was the % of British investments in India?
a) 51% b) 60% c) 72% d) 91% e) 100%.

16) What is meant by Home charges, one of the ways of economic drain of India?
a) Charges for establishment of industries in India. b) Incentives for exporting raw material to UK. c) Remuneration paid to British officials for working in India. d) Payments on account of interest on foreign debts incurred by India, remittances of Salaries, Savings, Pension by Britishers etc. e) none of these.

17) First train on India soil was run on 1853 between?
a) Bombay to Thane. b) Thane to Bombay. c) Bombay to Surat. d) none of these.

18) Who among the following are some of the notable economists who estimated India’s per capita income during the colonial period.
a) Dadabhai Naoroji. b) William Digby. c) Findlay Shirras d) V.K.R.V. Rao.  e) R.C. Desai


ANSWERS

1. ANS: B
2. Ans: A
3. Ans: C.  Egyptian mummies dating back 2000 BC were wrapped in Indian Muslin. Greeks called it Gangetika.
4. Ans: D
5. C. The unemployed craftsmen & artisans shifted to agriculture also described as back-to-the-land movement. In mid nineteenth century 55%, in 1901 68%, in 1931 72% of population was dependent on Agri.
6. D.
7. D. First 'Izaredari system' was introduced by Warren Hastings. In it the right to collect revenue was given to the highest bidder (who may change). Izaredars then squeezed everybody to pay to the Company. This 'bidding' process was later changed to a more permanent system which was hereditary.
8. B. Under Zamindari system land revenue were fixed for perpetuity. Zamindars were reponsible for payment of land revenue to the state.
9. D.
10. D. Ryots=peasant cultivators/hired labor. Later Mahalwari system (Mahal= house, district) was introduced in UP, Punjab in which along with village communities, landlords were jointly responsible for revenue.
11. B.
12. E.
13. A
14. B.
15. C.
16. D.
17. A.
18. All of the these ;).



Indian economy on eve of independence notes

Britishers changed structure of Indian economy — India end up being net supplier of raw materials and consumer of finished industrial products from UK. India was feeder of UK's Industrial base.

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Agriculture: Mainly Agrarian economy. 85% of population lived in villages & derived livelihood directly or indirectly from agri. Stagnant growth, bad land/ revenue settlement system - zamindari system.

Industrial sector: declining handicraft industries in India resulted in high unemployment, and demand was meet by cheap UK goods. From 1850s cotton & jute textile mills come up in Maharashtra, Gujrat. Jute mills in Bengal. 1900s- Iron/steel, TISCO(Tata Iron & Steel Co 1907) were set up.

However no Capital goods industry. {Capital goods industry means industries which can produce machine tools which are, in turn, used for producing articles for current consumption.}

Another drawback of colonial rule was Public sector was confining its activities only to the railways, power generation, communications, ports and some other departmental undertakings.

Foreign Trade: more than 50% of foreign trade was with UK. India was basically exporting raw goods (raw silk, cotton, wool, sugar, indigo, jute etc.) and importing finished consumers goods (cotton, silk and woollen clothes and capital goods like light machinery).

Most Importantly throughout the colonial period there was a generation of a large export surplus. This means that several essential commodities - food grains, clothes, kerosene etc were scarcely available here. The surplus was used to pay off British Government's war efforts.

Demographic condition: 1st modern census of 1881. Before 1921, India was in the first stage of demographic transition. The second stage of transition began after 1921.

{Demographic Transition : It is a concept developed by demographer Frank Notestein in 1945 to describe the typical pattern of falling death and birth rates in response to better living conditions associated with economic development. Notestein identified three phases of demographic transition, pre-industrial, developing and modern industrialised societies. Later another phase, post-industrial was also included.}


Social Development indicators was not good. Overall literacy level - 16%, for women: 7%. Life expectancy just 32yrs.

Occupational Structure:


Infrastructure: Real motive behind development of infra was to sub-serve colonial interest. Social benefits of railways outweighed huge economic losses.

Read MCQs to complete your understanding of this part.