RBI GRADE ‘B’ OFFICER’S EXAM Held on : 18.12.2011 (Part-II)

1. Which of the following statements is TRUE about International Monetary Fund (IMF)?

(1) IMF provide Ways and Means Funds to member countries
(2) IMF is an agency of the World Bank and is situated in Prague
(3) IMF makes all the rules and regulations in relation to the World Trade between the nations
(4) On becoming member of the IMF, countries get finance as temporary Balance of payment needs
(5) IMF is an organization floated by the members of NATO and caters to the need of those countries only

Correct Answer: (4) On becoming member of the IMF, countries get finance as temporary Balance of payment needs

Solution:IMF continues to provide short- and medium-term financial assistance to member
nations that run into temporary balance of payments difficulties.

2. The bank rate is

(1) free to fluctuate according to the forces of demand and supply
(2) set by the R. B. I.
(3) set by the R. B. I. as di- rected by the Union Ministry of Finance
(4) set by R. B. I. as advised by the Indian Banks Association
(5) set by Government of India on the recommendation of the Planning Commissoin

Correct Answer: (2) set by the R. B. I.

Solution:Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and
other financial intermediaries.

3. Which of the following terms is used in the field of Banking and Finance?

Correct Answer: (1) Special Drawing Rights

Solution:Special drawing rights (SDRs) are supplementary foreign exchange reserve assets
defined and maintained by the International Monetary Fund (IMF).

4. Which of the following is one of the Millennium Development Goals fixed by the United Nations Organisation (UNO)?

(1) Develop a global partnership for development
(2) Develop new varieties of food grains which can ensure bumper crops
(3) To ensure that population does not increase in Least Developed countries at an alarming rate
(4) Develop measures to avert deadly Hurricanes/Tsunamies etc. in an effective way
(5) Ensure that a Global Economy is developed where all nations can participate according to their strengths

Correct Answer: (1) Develop a global partnership for development

Solution:The Millennium Development Goals (MDGs) are eight international development
goals that all 193 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015. They include eradicating extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDS, and developing a global partnership for development.

5. Which of the following countries recently got a new bailout package with the help of the Private Sector?

Correct Answer: (4) Greece

Solution:The second bail-out, which follows the euro 110 billion rescue funds agreed in May
2011, will cut Greece's debt by a quarter.

6. By which of the followin months Goods and Service Tax (GST) is to be implemented in India?

Correct Answer: (4) April 2012

Solution:The Goods and Services Tax (GST) is a value added tax to be implemented in India by
April 2012.

7. India recently completed negotiations with 16 countries for entering into a 'TIEA'. TIEA denotes which of the following?

(1) Tax India Exchange Account
(2) Tax Information Exchange Agreement
(3) Total Information Exchange Accord
(4) Terminal Issue and Exchange Agreement
(5) Tax Issues and Export Agreements

Correct Answer: (2) Tax Information Exchange Agreement

Solution:India's Prime Minister, Manmohan Singh, in 2010, announced his intention to
expand the country's Tax Information Exchange Agreement (TIEA) network, starting
with Bahamas and Bermuda.

8. Famous Sardar Sarovar Dam is built across which of the following rivers?

Correct Answer: (4) Narmada

Solution:The Sardar Sarovar Dam is a dam on the Narmada River near Navagam, Gujarat, India.

9. Which of the following is NOT a Credit Rating Agency?

Correct Answer: (2) Lint as India Pvt. Ltd.

Solution:Lintas India Private Limited is engaged in outdoor advertising, market research etc.

10. Who among the following is the President (Chief) of the World Bank at present?

Correct Answer: (3) Robert B Zoellick

Solution:Robert Bruce Zoellick is the eleventh president of the World Bank, a position he has held since July 1, 2007.