RBI OFFICER GRADE ‘B’ PHASE-I EXAM Held on : 03.08.2014(Part-II)

Total Questions: 50

1. Which ship was used by Prime Minister Narendra Modi for his first defence outing?

Correct Answer: (2) INS Vikramaditya
Solution:Prime Minister Narendra Modi, on 14 June 2014, chose INS Vikramaditya, India's biggest and most potent ship, for his first defence outing. He spent over four hours on board watching various elements of naval combat power despite rain and rough sea.

2. Which among the following is not a characteristic of leasing?

Correct Answer: (5) None of the above
Solution:A lease is an agreement where-by the lessor conveys to the lessee, in return for rent, the right to use an asset for an agreed period of time. Its characteristics are: parties, asset, term, and lease rentals.

3. Who, at present, is the CEO of Apple Inc?

Correct Answer: (2) Tim Cook
Solution:Tim Cook, an American business executive, is the CEO of Apple Inc. He was named the CEO of Apple on August 24, 2011, succeeding Steve Jobs.

4. Which of the following is correct regarding SLR?

Correct Answer: (4) Both 1 and 2
Solution:Statutory liquidity ratio (SLR) refers amount that the commercial banks require to maintain in the form of gold or govt. approved securities before providing credit to the customers. It is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit. It is a quantitative measure of credit control.

5. The present Indian monetary system is based on

Correct Answer: (4) Minimum Reserve System
Solution:In terms of Section 22 of the Reserve Bank of India Act, the RBI has been given the statutory function of note issue on a monopoly basis. The note issue in India was originally based upon "Proportional Reserve System". When it became difficult to maintain the reserve proportionately, it was replaced by "Minimum Reserve System."

6. What does DTL stand for in the field of banking?

Correct Answer: (1) Demand and Time Liabilities
Solution:DTL stands for Demand and Time Liabilities. Demand Liabilities of a bank are liabilities which are payable on demand. These include current deposits, demand liabilities portion of savings bank deposits, etc. Time Liabilities of a bank are those which are payable otherwise than on demand. These include fixed deposits, cash certificates, cumulative and recurring deposits, etc.

7. Real time settlement of fund transfer is known as

Correct Answer: (1) RTGS
Solution:Real Time Gross Settlement (RTGS) is a funds transfer systems where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. Settlement in "real time" means payment transaction is not subjected to any waiting period. "Gross settlement" means the transaction is settled on one to one basis without bunching or netting with any other transaction.

8. Which of the following does not come under the regulatory purview of the Securities and Exchange Board of India (SEBI)?

Correct Answer: (3) regulating the monetary pol- icy of the country
Solution:Monetary policy is the process by which monetary authority of a country, generally a central bank (Reserve Bank of India) controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth.

9. Interest rate spreads indicate how efficiently banks

Correct Answer: (5) all of the above
Solution:Interest rate spread is the interest rate charged by banks on loans to private sector customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. Interest rate spreads indicate how efficiently banks perform their intermediation role of savings mobilisation and allocation.

10. The capital of which of the following countries is not correctly matched?

Correct Answer: (4) Mauritius: Abu Dhabi
Solution:Port Louis is the capital city of Mauritius. Abu Dhabi is the capital and the second most populous city in the United Arab Emirates and also capital of the largest of the UAE's seven member emirates.