RBI GRADE ‘B’ OFFICER’S EXAM Held on : 17.11.2002 (Part-I)

1. Which of the following is considered as financial deriva- tives ?

(1) These are risk shifting devices, which hedge the risk of owning assets that are subject to unexpected price fluctuations.
(2) Extension of loans to retail banking segments
(3) Cross border currency swap
(4) Forward contracts
(5) None of these

Correct Answer: (1) These are risk shifting devices, which hedge the risk of owning assets that are subject to unexpected price fluctuations.

2. Following a dispute over the distribution of petrol pumps, LPG distributions and Kero- sene dealership, all the allotments belonging to which of the following periods got cancelled ?

Correct Answer: (3) 2000-2002

3. RBI has recently issued following instructions in respect of exchange control of goods and services export. Which of these is not correct ?

(1) Export of Indian currency upto Rs. 10,000 is free, without exchange control.
(2) Direct despatch of documents is allowed in case of status exporters.
(3) All SEZ units are treated as status holder for extension of normal six months period.
(4) Information must be sent to RBI by the forex dealer once in six months.
(5) Consultancy exporters can keep the entire foreign exchange earning in their account.

Correct Answer: (2) Direct despatch of documents is allowed in case of status exporters.

4. The 'Arria Formula' which was recently in news is

(1) an informal arrangement at the U.N. Security-Council under which members can seek briefings on vari- ous issues concerning international peace and security.
(2) A formula suggested by the Mexico to solve Kashmir problem with the help of some third party mediation.
(3) The solution provided by some countries to overcome the problems created by the new policies of the WTO.
(4) The agreement made by the member countries of EURO club to overcome the prob- lems created by the introduction of fully covertible EURO currency from 1st January 2002.
(5) None of these

Correct Answer: (1) an informal arrangement at the U.N. Security-Council under which members can seek briefings on vari- ous issues concerning international peace and security.

5. As per the reports published in print media, the revenue collection may miss budget targets in current year also. Which of the following is the target fixed in terms of the per cent of GDP ?

Correct Answer: (4) 5.3%

6. Which of the following state- ments is not true about the 'Asian Brown Cloud', a project report which was in news recently ?

(A) The report is prepared by a agency of the United Nations Organisation.

(B) The report says that impact of vast pollution clouds was damaged the weather system and monsoon pattern.

Correct Answer: (3) Only C

7. All members of the Election Commission led by the Chief Election Commissiner visited which of the following states in August 2002 so that they can take decision to announce Assembly elections there ?

Correct Answer: (1) Jammu & Kashmir

8. As per present norms the Mergers and Acquisitions in the corporate sector need a clearance from which of the following in addition to RBI etc. ?

(A) High Courts of the Respective states

(B) Union Cabinet

Correct Answer: (1) A & B both

9. Which among the following statements is/are TRUE regarding Reserve Bank of India's (RBI) annoucement to provide 5 per cent relief to the banks who provide 'Sail of Pete' fund ?

(1) Public sector banks will be benefitted from it.
(2) Selected banks will be benefitted from it.
(3) Disinvestment will get a boost.
(4) It will be beneficial to the RBI to keep control on the public sector banks.
(5) None of these

Correct Answer: (4) It will be beneficial to the RBI to keep control on the public sector banks.

10. C.R.M.D has been established by the big banks. C.R.M.D. means—

(1) Credit Review Management Department
(2) Credit Risk Management Department
(3) Credit Review Monitoring Department
(4) Credit Review And Management Department
(5) None of these

Correct Answer: (2) Credit Risk Management Department