1. How can an Indian company receive foreign investment?
a) Automatic Route: Foreign Investment is allowed under the automatic route without prior approval of the Government or the Reserve Bank of India,
b) Government Route: Foreign investment in activities not covered under the automatic route requires prior approval of the Govern ment which are considered by the Foreign Investment Promotion Board (FIPB),
c) Both (a) and (b)
d) Through black money market
e) None of these
2. What are the instruments for receiving foreign investment in an Indian company?
a) Equity shares
b) Fully and mandatorily convertible preference shares, and fully and mandatorily convertible debentures.
c) Partly paid equity shares and warrants issued by an Indian company in accordance with the provision of the Companies
d) All the above
e) None of these
3. Into which sectors foreign investment is prohibited?
a) Lottery Business including Government / private lottery, online lotteries, etc.
b) Gambling and Betting including casinos etc.
c) Chit funds
d) All the above
e) None of these
4. What are the other modes of issues of shares for which general permission is available?
a) ESOP
b) Sweat Equity
c) Bonus, Rights
d) Swap of Shares
e) All the above
5. Give details of the Specified Bank Notes (Cessation of Liabilities) Ordinance 2016?
a) The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 has been promulgated by the President of India (GoI Ordinance No. 10 of 2016 dated December 30, 2016).
b) It is to provide for cessation of liabilities on the Specified Banknotes and for connected/incidental matters
c) It comes into effect from December 31, 2016
d) All the above
e) None of these
6. The Reserve Bank of India signed a Memorandum of Understanding (MoU) on “Supervisory Cooperation and Exchange of Supervisory Information” with which bank in Africa?
a) Bank of England
b) Bank of Zambia
c) Federal Reserve
d) Bank of Japan
e) None of these
7. Give details about ECBs ?
a) ECBs are external commercial borrowings/ loans raised by eligible resident entities from recognized non-resident entities
b) It should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc.
c) It is like loan
d) All the above
e) None of these
8. What is Forward Rate Agreement (FRA)?
a) A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange interest payments for a ‘notional principal’ amount on settlement date, for a specified period from start date to maturity date
b) It is SLR
c) It is CRR
d) It is CAR
e) None of these
9. What is Interest Rate Swap (IRS)?
a) An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or swapping a stream of interest payments for a ‘notional principal’ amount on multiple occasions during a specified period. Such contracts generally involve exchange of a ‘fixed to floating’ or ‘floating to floating’ rates of interest
b) It is Bank Rate
c) It is Repo Rate
d) It is Reverse Repo Rate
e) None of these
10. It has been decided to increase the quantum of loan that could be granted under the scheme, from Rs.1.00 lakh to Rs.2.00 lakh subject to which conditions?
a) The period of the loan shall not exceed 12 months from the date of sanction.
b) Interest will be charged to the account at monthly rests but will become due for payment along with principal only at the end of 12 months from the date of sanction.
c) RRBs should maintain a Loan to Value (LTV) ratio of 75% on the outstanding amount of loan including the interest on an ongoing basis, failing which the loan will be treated as a Non Performing Asset (NPA).
d) All the above
e) None of these
11. ‘Hallmarking’ of gold jewellery ensures which of the following?
a) The quality of gold used in the jewellery
b) Caratage
c) Fineness
d) Purity
e) All the above
12. RBI will reimburse banks the MDR on debit cards used for payment of tax and non-tax dues to the Government of India with effect from which date?
a) 1.1.2017
b) 1.11.2016
c) 1.7.2016
d) 1.1.2016
e) None
13. What is “Hybrid Debt”?
a) Shares only
b) “Hybrid Debt” means capital instrument which possesses certain characteristics of equity as well as of debt
c) Bonds only
d) Dividend
e) None
14. What is ‘Standard Asset’?
a) “Standard asset” means the asset in respect of which, no default in repayment of principal or payment of interest is perceived and which does not disclose any problem nor carry more than normal risk attached to the business
b) Gold
c) Diamonds
d) House
e) None
15. ‘Assets’ (i.e.loans given to the public)in banks are classifiedinto how many types?
a) Standard assets
b) Sub-standard assets
c) Doubtful assets
d) Loss assets
e) All the above
16. A”doubtful asset” may be ______
a) A term loan,
b) A lease asset
c) A hire purchase asset
d) Any other asset
e) Any one of the above
17. “Net Asset Value” means what?
a) The latest declared net asset value by the mutual fund concerned in respect of that particular scheme
b) Profits only
c) Losses only
d) Interest only
e) None of these
18. What is a ‘Credit Score’?
a) A Credit Score is a three digit numeric summary of your credit history
b) The value ranges between 300-900
c) It is derived by using details found in the Accounts and Enquiries section on your Credit Information Report (CIR)
d) It indicates the ‘probability of default’ of a borrower based on their credit history.
e) All the above
19. Who can access CIBIL Credit Reports? Give details.
a) CIBIL Members, which include leading Banks and Financial Institutions, can access information from CIBIL on the principle of reciprocity i.e. only those Members who have provided all their data to CIBIL are permitted to access CIBIL Credit Reports.
b) Members can do so only to take valid credit decisions. Disclosure to any other person or entity is prohibited.
c) Individuals can also request access to their Credit Reports directly from CIBIL
d) All the above
e) None of these
20. What is CIBIL Credit Report? Give details.
a) CIBIL Credit Report is a factual record of your credit payment history compiled from information received from different credit grantors.
b) Credit grantors are leading Banks, Financial Institutions, State Financial Corporations, Non-Banking Financial Companies, Housing Finance Companies, Credit Card Companies, who are Members of CIBIL.
c) The purpose is to help credit grantors make informed lending decisions – quickly and objectively, and enable faster processing of your credit applications to provide you speedier access to credit at better terms
d) All the above
e) None of these
21. What are the long standing meta-challenges before India, as per Economic Survey Report 2016-17?
a) Inefficient redistribution
b) Ambivalence about the private sector and property rights
c) Improving but still – challenged state capacity
d) All the above
e) None of these
22. Trans Union CIBIL Limited (formerly Credit Information Bureau (India) Limited) was incorporated based on recommendations made by which committee?
a) RBI Siddiqui Committee
b) Ghoshe Committee
c) Goiporia Committee
d) Dave Committee
e) None of these
23. Who is a ‘Significant Unit holder’?
a) A “Significant Unitholder” means any entity holding 5% or more of the total corpus of any scheme managed by the member and includes all entities directly or indirectly controlled by such a unitholder
b) 1% shares holder
c) 0.5% shares holder
d) 0.25% shares holder
e) None of these
24. Which is a ‘Trustee Company’?
a) A “Trustee Company” is a company incorporated as a Trustee Company and set up for the purpose of managing a mutual fund.
b) Partnership
c) Private Limited Company
d) Sole Proprietorship
e) None of these
25. With around 51.1 million units throughout the geographical expanse of the country, MSMEs contribute around 8% of GDP, 40% of the total exports and around 45% of the manufacturing output 3. They are also estimated to provide employment to how many persons in the country?
a) 10 million persons
b) Around 120 million persons
c) 5 million persons
d) 2 million persons
e) None of these
26. In order to solve the problem of delayed payment to MSMEs, RBI has licensed how many entities for operating the Trade Receivables Discounting System (TReDS)? The objective is to create Electronic Bill Factoring Exchanges which could electronically accept and settle bills so that MSMEs could encash their receivables without delay.
a) Three entities
b) 5 entities
c) 6 entities
d) 2 entities
e) None
27. In order to provide more choices of investors to Indian entities issuing Rupee denominated bonds abroad, it has been decided to also permit whom where India is a member country, to invest in these Rupee denominated bonds?
a) Individuals
b) Multilateral and Regional Financial Institutions
c) Cinema stars
d) Sportsmen
e) None
28. Gadgil formula deals with what?
a) V.N.Gadgil recommended a formula for the devolution of central plan assistance to states
b) Globalisation
c) Disinvestment
d) LPG
e) None of these
29. What are components of capital receipts?
a) Recoveries of loans
b) Market borrowings
c) Provident funds
d) Small savings
e) All the above
30. Article ____ of the Constitution of India indicates Union Finance Minister to place budget in the parliament .
a) 112
b) 118
c) 114
d) 110
e) 99
31. Who is the chairman of the Finance Commission?
a) K.C.Niyogi
b) Kaldar
c) Vanchoo
d) RangaRajan
e) Narasimham
32. Doha and Cancun concern with which of the following?
a) WHO
b) World Trade Organisation ministerial meetings
c) ILO
d) FAO
e) IAEA
33. Priority sector in India dealings with which of the following?
a) Agriculture
b) Small Scale Industries
c) Self Employed
d) Small business and retail business
e) All the above
34. In which of the following periods there was no five year plan?
a) 1966-69
b) 1979-80
c) 1990-92
d) All the above
e) None of these
35. What are the functions of RBI?
a) Issue of currency notes & coins
b) Banker to government
c) Banker’s bank
d) Custodian of foreign exchange reserves
e) All the above
36. How many types of organized money markets are there?
a) Call Money market
b) Commercial bills market
c) Treasury bill market
d) Mutual funds market
e) All the above
37. R.N. Malhotra committee was appointed for which of the following?
a) Insurance sector reforms
b) Banking sector reforms
c) Agriculture sector reforms
d) Industrial sector reforms
e) None
38. Bond market is part of which market?
a) Capital market
b) Agriculture market
c) Retail market
d) Whole sale market
e) None of these
39. A member of stock exchange who trade stocks (viz.,shares/debentures) is called as what?
a) Jobber
b) Contractor
c) Bailor
d) Depositor
e) None of these
40. What are functions of Money market?
a) It provides short term funds to business men, industrialists and traders and government
b) Exchange of shares
c) Exchange of gold
d) Exchange of Diamonds
e) None of these
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