RBI OFFICER GRADE ‘B’ ONLINE EXAM Held on : 25.08.2013 (Part-I)

Total Questions: 50

1. U.K. Sinha, who was in the recent news, is the Chairman of

(1) Planning Commission of India
(2) Securities and Exchange Board of India
(3) Competition Commission of India
(4) Insurance Regulatory and Development Authority
(5) Forwards Market Commission

Correct Answer: (2) Securities and Exchange Board of India

Solution:Upendra Kumar Sinha is the present chairman of SEBI. His term started in February He has been appointed for a period of three years

2. Which of the following does not correctly describe NAB- ARD?

(1) It is an apex development bank
(2) Its headquarters is based in New Delhi
(3) It was established in 1982 by a special act by the parliament
(4) It is active in developing financial inclusion policy
(5) It is responsible for credit flow for elevation of agriculture & rural non farm sector

Correct Answer: (2) Its headquarters is based in New Delhi

Solution:National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India having headquarters based in Mumbai (Maharashtra) and other branches are all over the country. It was established on 12 July 1982 by a special act by the parliament and its main focus was to uplift rural India by increasing the
credit flow for elevation of agriculture & rural non farm sector.

3. Who among the following was recently appointed as the new Governor of the Reserve Bank of India?

(1) K C Chakrabarty
(2) Urjit Patel
(3) Raghuram Rajan
(4) Anand Sinha
(5) H.R. Khan

Correct Answer: (3) Raghuram Rajan

Solution:Internationally renowned economist Raghuram Rajan took over as Reserve Bank of
India (RBI) Governor on 4 September 2013. There are four deputy governors presently
under the RBI organization, Deputy Governor K C Chakrabarty, Urjit Patel, Anand Sinha and H.R. Khan.

4. To which country does Muhammad Yunus, who developed the concepts of microcredit and microfinance, belong?

(1) Egypt
(2) Pakistan
(3) Indonesia
(4) Pakistan
(5) Bangladesh

Correct Answer: (5) Bangladesh

Solution:Muhammad Yunus is a Bangladeshi banker, economist and Nobel Peace Prize recipient. As a professor of economics, he developed the concepts of microcredit and microfinance. These loans are given to entrepreneurs too poor to qualify for traditional bank loans.

5. Which of the following does not correctly explain the market practice of Insider Trading?

(1) It is the trading of a public company's stock
(2) It is the trading of bonds or stock options by individuals with access to non-public information about the company
(3) Matters related to insider trading in India are dealt by Forward Market Commission
(4) Insider trading in India is governed by the Prohibition of Insider Trading regulations 1992
(5) None of these

Correct Answer: (3) Matters related to insider trading in India are dealt by Forward Market Commission

Solution:Matters related to insider trading in India is regulated and governed by the Securities
and Exchange Board of India. Prohibition of Insider Trading is governed by the SEBI Regulations of 1992. SEBI was recently (in July 2013) allowed access to data on telephone records of suspects under investigation. It will also have new powers to carry out searches and regulate group
investment programmes.

6. Which of the following has the authority to appoint Banking Ombudsman in India?

(1) SEBI
(2) RBI
(3) NABARD
(4) CII
(5) Ministry of Finance, Government of India

Correct Answer: (2) RBI

Solution:The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. The Banking Ombudsman Scheme was introduced under section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

7. Union Finance Minister P Chidambaram recently asked Public sector banks of India to set up ATMs in all branches by

(1) December 2013
(2) January 2014
(3) March 2014
(4) October 2014
(5) January 2015

Correct Answer: (3) March 2014

Solution:Union Finance Minister P Chidambaram, in July 2013, asked Public sector banks of India to set up ATMs in all branches by March 2014 to enable customers in rural
pockets to do banking round the-clock. The Finance Minister has also asked banks to
take steps to set up 8,000 branches in the country, especially in rural areas.

8. Which of the following companies manufacture Electronic Voting Machines (EVMs) in India?

(1) Bharat Electronics Limited
(2) Electronics Corporation of India
(3) Hindustan Machine Tool and
(4) Steel Authority of India Limited
(5) Both 1 and 2

Correct Answer: (5) Both 1 and 2

Solution:The EVMs were devised and designed by Election Commission of India in collaboration with two Public Sector undertakings viz., Bharat Electronics Limited, Bangalore and Electronics Corporation of India Limited, Hyderabad. EVMs were first used in 1981 in the by-election to North Paravur Assembly Constituency of Kerala.

9. Which of the following, in the banking sector, measures the ability of a company to meet its short term debt obligations?

(1) Current ratio
(2) Acid test ratio
(3) Cash ratio
(4) Working capital ratio
(5) All of the above

Correct Answer: (5) All of the above

Solution:Liquidity ratios are the ratios that measure the ability of a company to meet its
short term debt obligations. The liquidity ratios are a result of dividing cash and other liquid assets by the short term borrowings and current liabilities. Most common examples of liquidity ratios include current ratio, acid test ratio (also known as quick ratio), cash ratio and working capital ratio.

10. The Reserve Bank of India recently barred from disbursing loans against gold coins weighing more than

(1) 10 gram
(2) 25 gram
(3) 50 gram
(4) 100 gram
(5) 122 gram

Correct Answer: (3) 50 gram

Solution:Banks have been barred from disbursing loans against gold coins weighing more than 50 gram. The announcement was made by the Reserve Bank of India (RBI) in its monetary policy 2013-14 released in May 2013.

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