RBI GRADE ‘B’ OFFICER’S EXAM Held on: 11.10.2009 (Part-IV)

(A) It has projected that the Wholesale Price Index (WPI) based inflation would be around 4% by. March 2010.

(B) The RBI has decided that it would continue to use the completion of monetary and debt management tools to ensure successful completion of Govt. borrowing plans.

(C) As per RBI projections de- posits of scheduled commercial banks would grow to about 18%.

(A) The banks in India are in a good position to absorb shocks due to credit, liquidity and market risks.

(B) It is found that the financial sector is generally sound, and fairly liquid. However, cooperative sector needs some strengthening.

(C) Committee recommended that the foreign investments in infrastructure and banking sector should not be more than 22% as the free flow of the same is adversely affecting the growth of domestic deposit and savings. Domestic investors do not get attractive investment options.

(A) The Committee recommended that a Global Economic Council should be set up urgently to address global financial issues.

(B) All developed countries should take strong coordinated and effective actions to stimulate their economies. Industrial nations should dedicate 1.0% of their stimulus package for this cause.

(C) Developed countries should suspend all their investments they are making in developing and poor countries at least for a period of 5 years. The only aid which should continue should be to UN sponsored Food Assistance and emergency programmes. This will help developed nations to consolidate their domestic positions.

(A) Lack of inflation (deflation) is not necessarily a thing which is always good. (B) Inflation is an increase in the general level of prices for goods and services. (C) When inflation goes up, the purchasing power of the money also goes up.

(A) National Income means the total amount of money Govt. earns only through direct tax collections. every year.

(B) It is the total value of all sorts of stocks held by a country at a panicluar point of time.

(C) This is the measure of the volume of commodities and services turned out during a given period counted without duplication.

(A) The cooperative banks disbursed credit on the loans on demand mostly without proper guarantees and documents. Hence repayments were always at the mercy of the borrowers and upto some extent on good crops.

(B) The cooperative banks are mostly under the supervisory control of the Panchayats, which are not professionally qualified to control such institutions.

(C) Cooperative Banks do not get any relief package from the Govt. Hence they have to manage their affairs on their own resources only.

(A) By providing insurance products banks are earning additional revenue in terms of fee/commission.

(B) Banks with their huge customer base are leveraging on their existing relation- ship to convert customers into policyholders.

(C) With increase of health related problems, everybody wants an insurance cover no matter how big or small it is. Banks are coming up with many attractive offers, which are also affordable.