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

Total Questions: 50

31. The document which specifies the internal operations of a company is known as

(1) Audit Report
(2) Assessment Report
(3) Article of Association
(4) Operational Synopsis
(5) Blueprint

Correct Answer: (3) Article of Association

Solution:In corporate governance, a company's articles of is a document which, along with the
memorandum of association form the company's constitution. This document defines
the responsibilities of the directors, the kind of business to be undertaken, and the
means by which the shareholders exert control over the board of directors.

32. With reference to the Swadhar Scheme, who among the following is/are not its beneficiaries?

(1) Women victims of terrorist/ extremist violence
(2) Widows deserted by their families
(3) Women subject to domestic violence
(4) Women survivors of natural disaster
(5) Women with HIV/AIDS deserted by their family

Correct Answer: (3) Women subject to domestic violence

Solution:Swadhar' scheme caters to the requirement of various types of women in distress in
diverse situations under different conditions. It purports to address the specific vulnerability of each group of women in difficult circumstances through a Home-based holistic and integrated approach. Women subject to domestic violence are not its
beneficiary.

33. Which of the following companies has maximum shareholding in the India Mortgage Guarantee Corporation (IMGC)?

(1) National Housing Bank
(2) Genworth
(3) Asian Development Bank
(4) International Finance Corporation
(5) World Bank

Correct Answer: (1) National Housing Bank

Solution:The Foreign Investment Promotion Board (FIPB) had recently given its nod for foreign shareholders - Genworth (36 per cent stake), ADB (13 per cent) and IFC (13 percent) to infuse funds into the company. National Housing Bank (NHB) will have 38 percent stake in the mortgage guarantee company.

34. The Reserve Bank recently released the final guidelines for issuing of new banking licenc- es. As per these guidelines, foreign shareholding in the new bank for the first five years will be up to

(1) 16 per cent
(2) 33 per cent
(3) 49 per cent
(4) 51 per cent
(5) 64 per cent

Correct Answer: (3) 49 per cent

Solution:According to the guidelines, aggregate non-resident shareholding (foreign shareholding) in the new bank will be up to 49 per cent for the first five years. The minimum paid-up equity capital is Rs 500 crore.

35. Which term is used to describe a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high?

(1) Recession
(2) Depreciation
(3) Stagflation
(4) Depression
(5) Running inflation

Correct Answer: (3) Stagflation

Solution:The term 'stagflation' is used in economics to describe a situation where an inflation
rate is high, the economic growth rate slows down, and unemployment remains
steadily high. It raises a dilemma for economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.

36. Which of the following is not correct regarding the Reverse Repo Rate?

(1) It is the rate at which commercial banks borrow money from Reserve Bank of India
(2) It is a monetary policy instrument
(3) An increase in the reverse repo rate will decrease the money supply
(4) Both 2 and 3
(5) None of these

Correct Answer: (1) It is the rate at which commercial banks borrow money from Reserve Bank of India

Solution:Reverse repo rate is the rate at which the central bank of a country (RBI in case of India) borrows money from commercial banks within the country. It is a monetary pol-
icy instrument which can be used to control the money supply in the country. An increase in the reverse repo rate will decrease the money supply and vice-versa.

37. Which measure is used by the Reserve Bank of India to buy or sell government bonds or other securities in open market?

(1) Rationing of Credit
(2) Direct Action
(3) Consumer Credit Regulation
(4) Statutory Liquidity Ratio
(5) Open Market Operations

Correct Answer: (5) Open Market Operations

Solution:An open market operation is an activity by a central bank to buy or sell government bonds on the open market. The usual aim of open market operations is to manipulate the short term interest rate and the supply of base money in an economy. It indirectly controls the total money supply, in effect expanding money or contracting the money supply.

38. Who among the following is the Director of the Central Bureau of Investigation?

(1) Ranjit Sinha
(2) Amar Pratap Singh
(3) U.S. Misra
(4) R.K. Raghavan
(5) P.C. Sharma

Correct Answer: (1) Ranjit Sinha

Solution:Ranjit Sinha, an Indian Police Service officer of the 1974 batch, is the current Di-
rector of the Central Bureau of Investigation. He was the Director General of Police of
the Indo-Tibetan Border Police (ITBP) and the Director General of the Railway Protection Force before joining as the CBI Director in December 2012 for a two-year tenure.

39. Who among the following is the recipient of the Rajiv Gandhi National Sadhbhavna Award 2013?

(1) A.R. Rahman
(2) D.R. Mehta
(3) Amjad Ali Khan
(4) Yash Chopra
(5) Shiv Kumar Sharma

Correct Answer: (3) Amjad Ali Khan

Solution:Sarod maestro Amjad Ali Khan has been honoured with the Rajiv Gandhi National Sadhbhavna Award for his contribution towards promotion of communal harmony and peace. The award carries a citation and a cash award of Rs 5 lakh. It was conferred on
Khan on August 20, the birth anniversary of Rajiv Gandhi.

40. Who is appointed as the Chair- man of the Federal Reserve Bank of the United States of America?

(1) Treasury Secretary of the United States
(2) A member of the Board of Governors of the federal Reserve Bank
(3) A former Governor on the board of the International Monetary Fund
(4) Anyone having expertise in the field of finance and social service
(5) None of these

Correct Answer: (2) A member of the Board of Governors of the federal Reserve Bank

Solution:The Chairman of the Federal Reserve Bank is the "active executive officer of the
Board of Governors of the Federal Reserve System. As stipulated by the Banking Act of
1935, the President appoints the seven members of the Board of Governors; they must
then be confirmed by the Senate and serve for 14 years. The chairman and vice-chairman are chosen by the President from among the sitting Governors for four-year terms.

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