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

Total Questions: 60

31. One of the key factors that provide impetus to strong growth is Interest Rates. How do interest rates contribute to the growth of economy particularly when these are lowered down ?

(A) It gives corporations the opportunity to prepay high cost debts and replace them with fresh funds raised at lower rates.

(B) Banks use this opportunity to maximize profits on their treasury operations and these excess profits are used to clean their Balance Sheets by making higher provisions for NPAs or sticky loans.

(C) The Govt. also gets benefited as it can borrow funds from open market at low interest rates and bridge its fiscal deficit.

(1) Only A
(2) Only B
(3) Only C
(4) All A, B, & C
(5) None of these

Correct Answer: (1) Only A

Solution:Only A

32. The concept of "Meeting the needs of present without compromising the ability of future generation to meet their needs", is generally known as the concept of _____.

(1) Climate migration
(2) Sustainable Development
(3) Structural Development
(4) Inclusive growth
(5) None of these

Correct Answer: (2) Sustainable Development

Solution:Sustainable Development

33. Which of the following is NOT the component of India's Securities Market ?

(1) Commodity Futures
(2) Small Savings in National Saving Certificates.
(3) Government Bonds
(4) Corporate Equity
(5) Derivatives on currency

Correct Answer: (5) Derivatives on currency

Solution:Derivatives on currency

34. Which of the following was/ were the objectives of the Competition Act 2002 ?

(A) To keep a check on unfair trade practices.

(B) To promote Govt. supported products/services in competition to those launched by private parties

(1) Only A
(2) Only B
(3) Only C
(4) All A, B & C
(5) None of these

Correct Answer: (1) Only A

Solution:Only A

35. Which of the following is/was NOT included in the agenda set for the Banking Reforms in India ?

(1) Dismantling of administered Interest rates
(2) Measures to strengthen risk management
(3) Promulgation of SARFAESI Act
(4) Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt.
(5) Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market

Correct Answer: (4) Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt.

Solution:Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt.

36. Which of the following is the full form of the 'BRA' as used in banking field ?

(1) Brazilian and Russian As- sociation
(2) Banking Restructuring Act
(3) Banking Resources for Ag- riculture
(4) Borrowing Risk Assessment
(5) Banking Regulation Act

Correct Answer: (5) Banking Regulation Act

Solution:Banking Regulation Act

37. As we all know Govt. of India pays special emphasis on management of Fiscal Deficit. What is Fiscal Deficit ?

(1) The gap between projected or estimated GDP and actual GDP
(2) The gap between the total number and value of the currency notes issued by the RBI uptill now over the number and value of those which are of actual circulation
(3) The gap between the actual borrowings of the Govt. of India and the expected expenditure for which provision is made in the budget
(4) Excess of Gov's disburse- ment comprising current and capital expenditures over its current receipts (Tax/non tax receipts)
(5) None of these

Correct Answer: (4) Excess of Gov's disburse- ment comprising current and capital expenditures over its current receipts (Tax/non tax receipts)

Solution:Excess of Govt's disburse- ment comprising current and capital expenditures over its current receipts (Tax/non tax receipts)

38. An argument amongst the economists all over the world is going on on the issue of imposing special taxes on goods and services whose prices do not reflect the true social cost of their consumption, for example, tax on polluting environment. Which of the following are the other examples of such taxes?

(A) Duties on cigarettes

(B) Duties on alcohol

(D) Airport Tax

(1) Only A
(2) Only A & B
(3) Only A, B & C
(4) All A, B, C & D
(5) None of these

Correct Answer: (2) Only A & B

Solution:Only A & B

39. The presidential election of Iran held in June 2009 was contested between Mohd. Ahmadinejad and:

(1) Hashmi Rafsanjani
(2) Ali Larijani
(3) Mohd. Ali Jafari
(4) Mir Hossein Moussavi
(5) None of these

Correct Answer: (4) Mir Hossein Moussavi

Solution:Mir Hossein Mousavi

40. The presidential and Provincial Council elections took place in which of the following countries in August 2009 ?

(1) Nepal
(2) Afghanistan
(3) Myanmar
(4) Pakistan
(5) Sri Lanka

Correct Answer: (2) Afghanistan

Solution:Afghanistan

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