Q.1 Statements;
1) Under the SLR commercial banks keep the liquid assets with themselves
2) Arbitrage is the process of purchase & sale of securities to reduce the loss on purchase
Codes:
A) Only 1
B) Only 2
C) Both are correct
D) Both are incorrect
Ans. C
Q.2 Statements:
1) Only Commodities can be traded on National Spot Exchange of India ?
2) Interest rate risk can be placed under the Market risk as well as Credit risk
Codes:
A) Only 1
B) Only 2
C) Both are correct
D) Both are incorrect
Ans. A
Interest rate risk can be placed under the Market risk
Q.3 Statements:
1) Balance Of Payments is the statement of receipt from the foreign countries & payments made to the foreign countries
2) Fiscal Deficit reflects the overall budgetary position of the Government of India
Codes:
A) Only 1
B) Only 2
C) Both are correct
D) Both are incorrect
Ans. C
Q.4 Which of the following are the elements of the Union Budget ?
1) Estimates of Expenditure
2) Estimates of Revenue
3) Ways & Means to raise the revenue
Codes:
A) 1 & 3
B) 2 & 3
C) 1 & 2
D) 1,2,3
Ans. D
Q.5 Which of the following is/are the part of the tax revenue of the Government ?
1) Tax on Goods & Services
2) Tax on Expenditure
3) Tax on Income
4) Tax on property or Capital assets
Codes:
A) 1,3,4
B) 2,3,4
C) 1,2,3
D) 1,2,3,4
Ans. D
Q.6 In context with the VAT, consider the following statements:
1) It is levied by the Union Government & a small part of it goes to the State Governments
2) Income tax on retailers is now decided on the basis of their VAT collection in a year
3) It is a consumption tax levied on a value added to the product on every stage of its production
Codes:
A) 1 & 3
B) Only 3
C) 1 & 2
D) 1,2,3
Ans. B
A value-added tax (VAT) is a form of consumption tax. 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, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs.
The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax.
The value added to a product by or with a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products.
Q.7 Consider the statements regarding ATMs :
1) It does not accept deposits
2) It has a lack of human interference
3) It has a limited cash disbursement capacity
Codes:
A) 1 & 3
B) 2 & 3
C) 1 & 2
D) 1,2,3
Ans. D
Q.8 Statements:
1) Increase in Cash Reserve ratio will reduces the credit creation
2) Increase in CRR depicts Commercial banks have less money to lend
Codes:
A) Only 1
B) Only 2
C) Both are correct
D) Both are incorrect
Ans. C
Q.9 In context with the SLR, consider the following statements:
1) SLR is maintained by the banks itself
2) SLR restricts banks leverage in pumping more money into the economy
3) To meet SLR Commercial banks can use cash only
Codes:
A) 1 & 3
B) 2 & 3
C) 1 & 2
D) 1,2,3
Ans. C
Q.10 What is included in the other income ?
1) Commission for selling insurance policies
2) Interest on advances & loans
3) Fee for providing various services like ATM, extra cheque
Codes:
A) 1 & 3
B) 2 & 3
C) 1 & 2
D) 1,2,3
Ans. A
Q.11 RBI’s open market operation transactions are carried out to regulate;
1) Inflation
2) Borrowing power of the banks
3) Prices of essential commodities
4) Liquidity in the economy
Codes:
A) 1,3,4
B) 2,3,4
C) 1,2,3
D) 1,2,3,4
Ans. D
Q.12 Which among the following are the functions of RBI ?
1) To provide credit facility to the general public
2) To frame Monetary policy & Credit Policy
3) To keep Government money in the various account heads
4) To keep foreign exchange reserves of country in safe custody
Codes:
A) 1,3,4
B) 2,3,4
C) 1,2,3
D) 1,2,3,4
Ans. D
Q.13 Which of the following is the financial inclusion ?
1) Providing all sorts of financial aids/grants to the people living below poverty line as a social welfare measure without earning any profit
2) Opening of bank branches in rural areas only
3) Reaching banking services of all sections of the society in all parts of the country
Codes:
A) Only 2
B) 1 & 3
C) Only 1
D) Only 3
Ans. D
