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

Total Questions: 50

41. Which term is generally used for an Insurance Broker?

(1) Underwriter
(2) Agent
(3) Liaison Officer
(4) Actuary
(5) Assessor

Correct Answer: (2) Agent

Solution:An insurance broker is also known as insurance agent. He sells, solicits, or negotiates insurance for compensation. Brokers and agents are the retail side of insurance.

42. What is the expanded form of VAT?

(1) Value Additional Tariff
(2) Varying Actual Tax
(3) Variable Aviation Tariff
(4) Value Added Tax
(5) Variable Accounting Tax

Correct Answer: (4) Value Added Tax

Solution:A value added tax (VAT) is a form of indirect tax. It is like a sales tax in that ultimately
only the end consumer is taxed. From the perspective of the buyer, it is a tax on the
purchase price. From that of the seller, it is a tax only on the value added to a product,
material, or service.

43. Biocon is a

(1) Fertilizer company
(2) Gas company
(3) Hydro Power company
(4) Pharmaceutical company
(5) Water Harvesting company

Correct Answer: (4) Pharmaceutical company

Solution:Biocon Limited is an Indian biopharmaceutical compa- ny based in Bangalore. The Company manufactures generic active pharmaceutical ingredients (APIs) that are sold in the developed markets of the United States and Europe. It also manufactures Insulin.

44. Which is the designated body for creating the necessary infrastructure to ensure KYC compliance for the Mutual Fund Industry?

(1) SEBI
(2) RBI
(3) FICCI
(4) CVL
(4) CVL

Correct Answer: (4) CVL

Solution:CDSL Ventures Limited (CVL) has been formed by the Mutual Fund industry to create the necessary infrastructure to handle the KYC on behalf of the Mutual Fund Industry. CVL is a wholly owned subsidiary of Central Depository Services (India) Limited.

45. Under the Senior Citizens Savings Scheme, 2004, what was the tenure of the deposit account?

(1) 1 year
(2) 2 years
(3) 3 years
(4) 5 years
(5) 7 years

Correct Answer: (4) 5 years

Solution:Under the Senior Citizens Savings Scheme, 2004, the tenure of the deposit account
was 5 years which could be extended by 3 years. Non Resident Indians (NRIs), Persons
of Indian Origin (PIO) and Hindu Undivided Family (HUF) are not eligible to open an account under the Scheme.

46. The government recently approved liberalisation of FDI norms in a dozen of sectors. In this context, which global supermarket chain has been allowed to set up cold storages and warehouses in the country?

(1) Wal-Mart Stores
(2) Tesco
(3) Sub Way
(4) Nestle Inc
(5) Only 1 and 2

Correct Answer: (5) Only 1 and 2

Solution:The government eased investment rules for the retail sector allowing foreign super-
market operators to procure from small businesses which have invested no more than
the equivalent of $2 million in plant and machinery. Global supermarket chains like WalMart Stores Inc and Tesco have been allowed to invest 50 per cent of an "initial" mandatory investment of $100 million in setting up cold storages and warehouses in
the country.

47. Which internet giant recently bought the micro-blogging and social networking website Tumblr?

(1) Google
(2) Yahoo
(3) Facebook
(4) MySpace
(5) AOL

Correct Answer: (2) Yahoo

Solution:Yahoo announced a $1.1 billion deal for blogging site Tumblr in May 2013. The deal
will help Yahoo to tap into the younger, active online user base at Tumblr. Tumblr has 300 million monthly unique visitors and 120,000 sign-ups every day, with about 900
posts a second.

48. The Government of India re- cently launched a nation- wide campaign "Tears you apart" to raise awareness on

(1) HIV/AIDS
(2) Smokeless Tobacco
(3) Female Infanticide
(4) Global Warming and Climate Change
(5) The Landslide in Uttarakhand which led to human tragedy

Correct Answer: (1) HIV/AIDS

Solution:Ministry of Health & Family Welfare, Government of India, has launched a nation-
wide National Tobacco Control Campaign called "Tears you apart". The Campaign
aims to raise public awareness about the dangers of smoke- less tobacco consumed by
tens of millions of Indian every day.

49. Accounting practices that follow required laws and regulations, but deviate from what those standards intend to accomplish, are known as

(1) Imaginative accounting
(2) Creative accounting
(3) Innovative accounting
(4) Window dressing
(5) Aesthetic accounting

Correct Answer: (2) Creative accounting

Solution:Creative accounting is the term for accounting practices that follow required laws and
regulations, but deviate from what those standards intend to accomplish. Creative ac-
counting capitalizes on loopholes in the accounting standards to falsely portray a better image of the company.

50. Which of the following countries has the highest population density in the world?

(1) Monaco
(2) Bangladesh
(3) India
(4) Mauritius
(5) Mongolia

Correct Answer: (1) Monaco

Solution:With population above 1 million, Monaco has the highest population density of 7301
per square km. With population above 10 million, Bangladesh is the densest with
1034 people found per square km. since the question does not specify population criteria, we can safely say that Monaco in South Europe has the record for being the most densely populated nation in the world.

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