COPYRIGHT Q.528 – FRAMED FROM THE HINDU
Q.1 With reference to the Libra cryptocurrency, consider the following statements :
- The Libra reserve will include bank deposits and government bonds in several international
currencies
- Demand or scarcity are the driving factors of the Libra currency
Select the correct answer using the codes given below :
- A) Only 1
- B) Only 2
- C) Both are correct
- D) Both are incorrect
Ans. A
What is the difference between Bitcoin and Libra cryptocurrency?
Though popular, Bitcoin cryptocurrency has been known to be volatile, especially in recent years.
Unlike Bitcoin, Libra will be backed by a reserve of real assets, meaning that the value of the
currency will be linked to something with intrinsic value rather than driven by demand or scarcity.
The Libra reserve will include bank deposits and government bonds in several international currencies.
The reserve will be administered by a non-profit associated headquartered in Geneva, Switzerland.
What is Libra Cryptocurrency?
The Libra cryptocurrency is a digital currency, built on a blockchain designed with security in mind.
It will be stored in a digital wallet called ‘Calibra’, which will be available as an app, as well as
within Facebook Messenger and whatsapp as an integrated payments system. This will enable users to
send and receive money through messages.
Will the Libra cryptocurrency work offline as well?
Facebook aims for Libra to be used for offline payments as well including for public transport, buying
groceries or paying bills. Facebook also plans to make its cryptocurrency available for exchange from
traditional currency through physical ATM machines.
Who will be able to access the Libra cryptocurrency?
The Libra cryptocurrency will be accessible to anyone with an entry-level smartphone and data
connectivity.
Who will manage the Libra cryptocurrency project ?
Facebook will not be governing the services of the Libra cryptocurrency. The social media giant has
created an independent organisation called the Libra Association, which will build applications
related to the new digital currency.
Where is Bitcoin legal and illegal?
Introduced in 2009, Bitcoin cryptocurrency is popularly used for transactions in many nations across
the world including the United States, European Union, Canada and Australia. However, the
cryptocurrency is considered illegal in many nations such as China, Russia, Vietnam and Bolivia.
COPYRIGHT Q.518 – FRAMED FROM THE HINDU
Q.2 With reference to the Teaser Loans, consider the following statements :
- It is an adjustable interest rate mortgage loan in which borrower pays a very low initial interest
rate, which increases after a few years
- In India, Teaser loans are mostly given to the inexperienced entrepreneurs to set up manufacturing
or exports unit
Select the correct answer using the codes given below :
- A) Only 1
- B) Only 2
- C) Both are correct
- D) Both are incorrect
Ans. A
Teaser Loans ;
It is an adjustable interest rate mortgage loan in which borrower pays a very low initial interest
rate, which increases after a few years
COPYRIGHT Q.517 – FRAMED FROM THE HINDU
Q.3 With reference to the Monetary Transmission , consider the following statements :
- It refers to the process by which a central bank’s monetary policy decisions are passed on to the
financial markets
- Rising Non performing Assets & higher returns on small saving schemes may hinder effective monetary
transmission
- Lowering of CRR & SLR requirements may help ensure effective monetary transmission
Select the correct answer using the codes given below :
- A) 1 & 3
- B) 2 & 3
- C) 1 & 2
- D) 1,2,3
Ans. D
Monetary Transmission :
– It refers to the process by which a central bank’s monetary policy decisions are passed on to the
financial markets
-Rising Non performing Assets & higher returns on small saving schemes may hinder effective monetary
transmission
-Lowering of CRR & SLR requirements may help ensure effective monetary transmission
MOCK Q.516 – FRAMED FROM THE HINDU
Q.4 Debt Recovery Tribunals were established under the Recovery of Debts Due to Banks & Financial
Institutions Act,1993. With reference to the Debt Recovery Tribunals (DRT) consider the following
statements :
- DRT is presided over by presiding officer who is generally a judge of the rank of district &
session judge
- DRT is fully empowered to pass comprehensive orders like civil courts
- Tribunal can hear cross suits , counterclaims & allow set offs
Select the correct answer using the codes given below :
- A) Only 2
- B) 1 & 3
- C) 2 & 3
- D) 1,2,3
Ans. D
Debt Recovery Tribunals were established under the Recovery of Debts Due to Banks & Financial
Institutions Act,1993
-DRT is presided over by presiding officer who is generally a judge of the rank of district & session
judge
-DRT is fully empowered to pass comprehensive orders like civil courts
-Tribunal can hear cross suits , counterclaims & allow set offs
MOCK Q.515 – FRAMED FROM THE HINDU
Q.5 Which among the following is not the function of the Asset Rehabilitation Agency that has been
recommended by the Economic Survey 2017 ?
- A) The agency will sell assets of loss making PSUs & will collect the payments due towards electricity
boards
- B) The agency take over the NPAs from the banks for a fixed cost , which is less than NPA amount
- C) The agency will issue security receipts for fixed interest rate & will raise the money
- D) NPA is transferred to the ARC along with any security pledged while taking loan
Ans. A `
Asset reconstruction companies or Public Asset Rehabilitation Agencies acquire bad loans from any bank
or financial institution for the purpose of realization of such loans
HOW ARC WORKS ?
The agency take over the NPAs from the banks for a fixed cost , which is less than NPA amount
The agency will issue security receipts for fixed interest rate & will raise the money
NPA is transferred to the ARC along with any security pledged while taking loan
MOCK Q.514 – FRAMED FROM THE HINDU
Q.6 With reference to the Insolvency & Bankruptcy code 2016, which among the following statement is not
correct ?
- A) The code will apply companies, partnerships, limited liability partnerships, Individuals & other
body specified by the government
- B) Insolvency resolution process could be initiated either by the debtor or creditor
- C) As per the code, debtor could be jailed for upto 3 years for concealing property or defrauding
creditors
- D) Resolution process will have to be completed within 180 days with an extension of upto 90 days if
75% of creditors agree
Ans. C
Insolvency & Bankruptcy code 2016 :
-The code will apply companies, partnerships, limited liability partnerships, Individuals & other body
specified by the government
-Insolvency resolution process could be initiated either by the debtor or creditor
-As per the code, debtor could be jailed for upto 5 years for concealing property or defrauding
creditors
-Resolution process will have to be completed within 180 days with an extension of upto 90 days if
75% of creditors agree
MOCK Q.513 – FRAMED FROM THE HINDU
Q.7 With reference to the Basel norms , consider the following statements :
- These are the broad supervisory substandards to ensure that the financial institutions have enough capital to meet unexpected losses
- At present banks are adhering to Basel III norms
- Basel III introduced tighter capital requirements in comparison to Basel I & II
Select the correct answer using the codes given below :
- A) 1 & 3
- B) Only 1
- C) 2 & 3
- D) 1,2,3
Ans. A
RBI has mandated that Indian banks are required to adopt Basel III norms upto 31 March 2019(Earlier this date was 31 March 2018)
Basel III introduced tighter capital requirements
These are the broad supervisory substandards to ensure that the financial institutions have enough
capital to meet unexpected losses
MOCK Q.8 – FRAMED FROM THE HINDU
- Which of the following statements best describes “Anchor Banks”?
- A) These are the public sector banks that will drive the consolidation process among the state owned
banks
- B) It is a body of eminent professionals that have been set up to insulate public sector banks from
interference by the government
- C) These are the separate institutes formed by the bank or group of banks or by the government itself
- D) These are the public sector banks that have been classified as Domestically Systemically Important
banks
Ans. A
Anchor Banks : These are the public sector banks that will drive the consolidation process among the
state owned banks
Bank Board Bureau : It is a body of eminent professionals & consists of only one government official.
CAG has been appointed as head of the BBB.
It has been set up to insulate public sector banks from interference by the government
MOCK Q.511 – FRAMED FROM THE HINDU
Q.9 Which one of the following best describes the term “BOOT” sometimes seen in news ?
- A) It is a PPP model in which a private entity is required to design, procure material & construct the
project
- B) It is a form of PPP in which a private entity builds a complete project & leases it to the
government
- C) It is a form of PPP in which a private entity builds the project , operates the project to recover
its costs & thereafter handovers the project to the government
- D) It is a form of PPP in which ownership of the project remains with the private company
Ans. C
EPC (ENGINEERING –PROCUREMENT CONSTRUCTION ) :It is a PPP model in which a private entity is required
to design, procure material & construct the project
BLT (BUILD LEASE TRANSFER) : It is a form of PPP in which a private entity builds a complete project &
leases it to the government
BOOT ( BUILD OWN OPERATE TRANFER) : It is a form of PPP in which a private entity builds the project ,
operates the project to recover its costs & thereafter handovers the project to the government
BOO (BUILD OWN OPERATE ) : It is a form of PPP in which ownership of the project remains with the
private company
MOCK Q.509 – FRAMED FROM THE HINDU
- Of the following what is the difference between Greenfield & Brownfield project ?
- A) In Greenfield , a new facility offers maximum design flexibility & efficiency to meet the project
needs while in Brownfield , building is already constructed
- B) A Greenfield project is usually started at a less cost than a brownfield project
- C) A Greenfield project requires fewer approvals than a brownfield project
- D) In Greenfield , building is already constructed while in Brownfield , a new facility offers maximum design flexibility & efficiency to meet the project needs
Ans. A
In Greenfield , a new facility offers maximum design flexibility & efficiency to meet the project needs.
New facilities are typically less costly
In Brownfield , building is already constructed. Time devoted to construction can be avoided as well
