If RBI adopts an expansionist open market operation policy, this means that it will

(a) openly announce to the market that it will intends to expand credit
(b) offer the commercial banks more credit in the open market
(c) buy securities from non government holders
(d) sell securities in the open market

Q. Which of the following best describes the pattern of age sex structure of a
population passing through a stage of high fertility and high mortality?
(a) Population pyramid that represents a narrow base and gradually tapering top.
(b) The base of the pyramid is of medium size but the middle portion, particularly
specified for male population, is enlarged and gradually reduces at he top.
(c) Population pyramid that represents a broader base and gently sloping
sides.
(d) The base of the pyramid is narrower than the immediate higher-age interval
and gradually reduces at the top.
Heng Seng index : hong kong

RBI Grade B Phase II Finance (Risk Management in Banking Sector).

Level of Difficulty - Very High.
Q. Which of the following has lowest (among given 4 options) Risk Weight in
Calculation of CRAR of Commercial Bank?
(a) Deposits placed with SIDBI / NABARD / NHB in lieu of shortfall in lending
to priority sector.
(b) Claims on commercial banks.
(c) Investments in instruments issued by NBFC-ND-SI.
(d) Investments in Venture Capital Funds.

RBI Grade B Phase II Finance (Risk Management in Banking Sector).

Level of Difficulty - Medium.
Q. Banks perform multifarious functions. However financial inter mediation and maturity transformation are by far the
most significant activities performed by banks. Banks essentially have a ____liability profile as against an____asset
profile.
(a) illiquid, illiquid
(b) illiquid, liquid
(c) liquid, liquid
(d) liquid, illiquid

Deposits are banks liabilities...and loans are banks assets. e.g Housing Loan cannot be
recovered immediately. So loans get matured slowly and difficult to recover in short span of
time

 A P Shah Committee recommends MAT relief to FIIs

Minimum Alternate Tax (MAT) should not be imposed on FIIs retrospectively for
the period preceding 1st April 2015

R Gandhi committee of RBI recommends conversion of UCBs into regular

banks
conversion of Urban Cooperative Banks (UCBs) with business size of 20,000
crore rupees or more into regular banks
smaller UCBs with business size of less than 20,000 crore rupees who are willing to convert to
Small Finance Banks can apply to the RBI.

Licenses for conversion to operate as UCBs will be issued to well-managed and

financially sound cooperative credit societies having a minimum track record of 5years.
With the conversion, UCBs will be allowed to grow and proliferate further to meet
the objective of financial inclusion.

\
D

RBI Grade B Phase II (Finance)

Level of Difficulty : Medium
Q.Which of the following is / are not classified as Financial Regulators in India?
1. Securities and Exchange Board of India
2. Reserve Bank of India
3. Ministry of Finance
4. Ministry of Corporate Affairs
5. IRDA
6. PFRDA
(a) Only 3
(b) Only 4
(c) Only 3 and 4
(d) None

D
All are the regulator

Credila is a non-banking finance company and was the first Indian Lender to
exclusively focus on education loans. It is an associate of_________
a) ICICI Bank
b) HDFC Bank
c) Bank of India
d) State Bank of India
e) Canara Bank

Q. The buyer of a futures contract:

1. Goes long in the cash market because the contract requires her to take delivery
of the underlying asset on the expiry date
2. Goes short in the cash market because the contract requires her to take
delivery of the underlying asset on the expiry date
3. Goes short in the cash market because the contract requires her to deliver the
underlying asset on the expiry date
4. Goes long in the cash market because the contract requires her to deliver the
underlying asset on the expiry date

Q. What advantage do over-the-counter derivatives have over exchange-traded

derivatives?

1. Over-the-counter contracts are more readily tradable

2. Over-the-counter contracts are always for longer periods
3. There is less risk of default on over-the-counter contracts
4. Over-the-counter contracts are more flexible
4

Natural Disaster is one risk that can not be attributed to Anything Thus its aGeneral Risk. As
we have seen Crisis at Greece, China or Ireland has impact all Over India so Sovereign Risk is
a Global Risk. Current Account Deficit is an indicatore or Macroeconomic health and thus its a

macroeconomic risk, Foreign exchange is Heavily dependent on Market and it affect export
import market so its Market risk, Regulation Affect the whole institution whether its banking or
Housing risk. So Institutional is under regulatory risk. So A-3 B-4 C-1 D 2 E 5

In budget 2015-2016, the allocation for rural infrastructure development fund (ridf)
set up in NABARD stands at
A. 18000 crore
B.20000 crore
C.25000 crore
D. 30000 crore

25000 cr

According to the World Economic Forum Study which of the following is the worlds
biggest employer?
a) Indian Railways
b) Peoples Liberation Army
c) TCS
d) US department of defense

Schemes launched by Prime Minister

1. Pradhan Mantri surakshabima yojana

Eligibility age group 18-70 having saving bank account can be enrolled under
scheme.
Premium rs 12 per annum
Payment mode through saving bank account of the subscriber
Insurance cover- for accidental death- rs 2 lakh, for partial disability rs 1 lakh
2. Pradhan Mantri jeevan jyoti bima yojana
Eligibility age group 18-50 having saving bank account can be enrolled under

scheme.
Premium rs 330 per annum
Payment mode through saving bank account of the subscriber
Insurance cover - forrs 2 lakh in case of death due to any reason
3. Atal pension yojana
Purpose pension
Age minimum 18 years and maximum 40 years
Fixed pension Rs 1000 to Rs 5000 per month at the age of 60 years
Contribution depends upon your age
Government contribution 50% of your contribution or Rs 1000, whichever is
lower
Saving bank account is mandatory
4. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Smart
Cities
Project scope- 100 smart Cities and 500 cities for AMRUT
Central allocation Rs 48000 crore for smart cities and Rs 50000 crore for
AMRUT
Period 5 years
Smart cities to be selected through City Challenge Competition
AMRUT will cover all cities with population more than 1 lakh and above
5. Skill Development Program
It will provide training and skill development to 500 million youth of our country by
2020, covering each and every village.
6. Pradhan MantriAwasYojana
It is a reformation of the scheme Housing for All.
The aim of this scheme is to construct more than two crore houses across the
length and bredth of the nation.
The target beneficiaries of the scheme would be poor and people living under
EWS and LIG categories in urban establishments of the country.
The government would provide an interest subsidy of 6.5% on housing loans
availed by the beneficiaries for a period of 15 years from the start of loan.

The houses under Pradhan MantriAwasYojana would be allotted to preferably the

female member of the family.
7. Digital India
Aim To ensure the government services are made available to citizens
electronically.
Digital India has three core components. These includeThe creation of digital infrastructure, Delivering services digitally, Digital literacy
The project is slated for completion by 2019.
Monitored and Controlled by - Ministry of Communications and IT
9 Key points of Digital India Programme are as follow Universal Access to Phones
Broadband Highways
Public Internet Access Programme
e-Governance Reforming government through Technology
e-Kranti Electronic delivery of services
Information for All
Electronics Manufacturing Target NET ZERO Imports
IT for Jobs
Early Harvest Programmes
8. Heritage City Development and Augmented Yojana
Amount allocated Rs 500 Crore
City allocated 12 cities (namely, Ajmer, Amaravati,(Andhra Pradesh), Amritsar,
Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and
Warangal).
Aim To bring together urban planning, economic growth and heritage
conservation in an inclusive manner to preserve the heritage character of each
Heritage City.
9. Sukanya Samriddhi Account Yojana
Investment type- small deposit account
Where post office and selected banks
Max number of account- 1 account per girl

Max number of accounts per family max. 2 girl child

Agefrom birth till 10 years of girl child
Min. deposit Rs 1000/ per year, further multiple of rs 100
Max. deposit 1.5 lakh/year
Interest rate 9.1% of financial year 2014-15. it will change every year
Partial withdrawal50% allowed at the age of 18 years of girl
Maturity 21 years from the date of account open or marriage, whichever is
earlier
10. PAHAL scheme
Aim - to bring transparency and terminate pilferage from distribution of funds
sponsored by Central Government of India.

Assertion (A) : Indirect taxes promote inequalities in the distribution of

income.
Reason (R) : The poor bear more burden of indirect taxes.

Codes : (A) (A) is true but (R) is false. (B) Both (A) and (R) are true
and (R) is the correct explanation of (A). (C) (A) is false but (R) is
true. (D) Both (A) and (R) are false

Consider following statements :

1. Credit creation varies inversely with Cash Reserve Ratio (CRR).
2. Credit creation varies positively with Cash Reserve Ratio (CRR).
3. Bond price and interest rate are inversely related.
4. Bond price and interest rate are positively related.
Which of the above statements is correct ?

an inferior good is a good that decreases in demand when

consumer income rises (or rises in demand when consumer income
decreases),

Normal goods are those for which consumers' demand increases when their
income increases.

a superior good, one that is often associated with wealth and the wealthy,
whereas an inferior good is often associated with lower socio-economic groups.

quantity theory of money

1. the hypothesis that changes in prices correspond to changes
in the monetary supply.

tax incidence or tax burden does not depend on where the revenue is collected,
but on the price elasticity of demand and price elasticity of supply

SBI is the agent of RBI in international arena

marginal cost is the change in the total cost that arises when the
quantity produced is incremented by one unit. That is, it is thecost of
producing one more unit of a good. In general terms, marginal cost at
each level of production includes any additional costs required to
produce the next unit.

MUDRA bank has partnered with how many state and regional level coordinates
to reach the last mile financiers for micro business ?
A. 19

The bank accredited by the Green Climate Fund as an implementing entity for
climate change related projects in India ? \
NABARD

A country that has a trade deficit experiences a nominal exchange rate

depreciation. As a result
Trade deficit will decline

Tendulkar comittiee estimated d new all India poverty line for year 04-05 for rural
and urban and whole at?
.
A- 41.8% for rural 25.7 for urban and 37.2 for whole.

Union Government recently signed a $300 million loan agreement for National
Urban Health Mission with ADB. The mission seeks to cover all the cities with a
population _.
1) Above 50000

Maurice Obstfeld appointed as Chief Economist of which of the following

organisation? IMF

RBI recently relaxed Branch Authorisation Policy to allow banks to merge or close branches in urban areas under of
the Banking Regulation Act, 1949. SECTION 23

COMMITTEES ON VARIOUS SECTORS OF INDIAN ECONOMY

--------------------------------------------------------------------------------AC Shah Committee -- NBFC
Bimal Jalan Committee -- Market Infrastructure Instruments
Malegam Committee -- Functioning of Micro Finance
Birla Committee -- Corporate Governance
Kirti Parikh Committee -- Rationalization of Petroleum product prices
Chaturvedi Committee -- Improving National Highways in India
SR Hasim Committee -- Urban Poverty
Abhijit Sen -- Whole sale price index
C Ranarajan -- Service Price Index
Abid Hussain Committee -- Development of capital Markets
Damodaran Committee -- Customer service in Banks
Khandelwal Committee -- HR in Commercial Banks
Patil Committee -- Corporate Debt
VK Sharma Committee -- Credit to Marginal Farmers
Sarnagi Committee -- NPA
Khanna Committee -- regional rural banks

Dantawala Committee -- Lead Bank Scheme

Gadil Committee --Financial Inclusion

Which of the following Indian bank recently signed a $200-million loan agreement
with ADB? AXIS

As per recently announced by the Union Government, Handloom Day will be

celebrated accross the nation on

7th August

Union Ministry for Minority Affairs launched Nai Manzil Scheme is intended to
cover people in between the age group of
17-35 yrs
National Income estimates in India is prepared by
A. RBI
B. C.S.O.
C. Finance Ministry
D. Planning Commission

Cso

RBI recently notified the Union Budget- 2015-16 Interest Subvention Scheme
(ISS) and asked all banks to provide interest concession of 2 percent on short
term crop loans of up to
.
1) Rs 10 Lakh
2) Rs 5 Lakh
3) Rs 2 Lakh
4) Rs 3 Lakh
5) Rs 1 Lakh

Upto 3 lakhs

Which of the following country named as World Book Capital for 2016 by
UNESCO?
1) Buenos Aires
2) Conakry
3) Incheon
4) Wroclaw
5) New Delhi
Wroclaw

Surcharge on tax for the income exceeding 10 crores has been increased
1. From 6 to 12%
2. From 6 to 10%
3. From 8 to 12%
4. From 10 to 12%
Similar on income exceeding 1 crore

1. From 5 to 10%
2. From 6 to 12%
3. From 5 to 7%
4. From 6 to 9%

Govt proposed to reduce the corporate tax over the next four years, starting from
next financial year from 30% to what?
1. 25%
2. 24%
3. 20 %
4. 22%

RBI recently relaxed Branch Authorisation Policy to allow banks to merge or close
branches in urban areas under of the Banking Regulation Act, 1949.

Section 23

Under new guidelines issued by CBDT, any person who gives credible inputs
against the declared tax defaulter would receive reward as ___ % of tax realised
with maximum limit of 15 lakh on reward.

1. 1
2. 5
3. 10
4. 25

TOBIN TAX

The tax on foreign exchange transactions was devised to cushion exchange rate
fluctuations. The idea is very simple: at each exchange of a currency into another
a small tax would be levied - let's say, 0.5% of the volume of the transaction. This
dissuades speculators as many investors invest their money in foreign exchange
on a very short-term basis. If this money is suddenly withdrawn, countries have to

drastically increase interest rates for their currency to still be attractive. But high
interest is often disastrous for a national economy, as the nineties' crises in
Mexico, Southeast Asia and Russia have proven. My tax would return some
margin of manoeuvre to issuing banks in small countries and would be a measure
of opposition to the dictate of the financial markets

7- Points Mission INDRA-DHANUSH

Revitalising PSBs
1. Appointments of MD & CEO
2. Bank Bord Bureau
3. Capitalisation- priority will be given to 6-big Size banks
Disinvestment - upto 52
Need of the hour - 180000 crore
4- Distressed Assets - High rising NPAs Redressal mechanism
5- Empowerment - freedom of Deciding Interest Rates
6- Framework for Performance - incentives to Employees
7- Governance - Person who influence Decision Making - how banks are allowed
to Function .