Current Affairs Questions

1. Recently GoM approved (A) Religion-based census (B) Caste-based census (C) Sub-caste-based census (D) None of the above Ans : (B) 2. Which political party has emerged as the richest one in India ? (A) BJP (B) Congress (C) CPM (D) BSP Ans : (B) 3. The Central Government has set up a committee to evolve a comprehensive policy on autonomy for (A) Central Universities (B) Indian Institutes of Technology (C) The Indian Institutes of Management (D) All of the above Ans : (D)

4. Nuclear Submarine Akula has been handed over to India recently by (A) France (B) Russia (C) USA (D) Germany Ans : (B) 5. Lok Sabha on August 25, 2010 adopted (A) Educational Tribunal Bill (B) Bill on Whistle Blowers (C) Nuclear Liability Bill (D) None of the above Ans : (C) 6. The Worlds Number two economy is

(A) USA (B) Japan (C) China (D) Germany Ans : (C) 7. As per the recent report how many UN peacekeeping missions India has taken part in? (A) 50 (B) 42 (C) 60 (D) 70 Ans : (B) 8. The United States recently concluded a major phase of military withdrawal from (A) Afghanistan (B) Iraq (C) Iran (D) Cuba Ans : (B) 9. Which of the following signed recently a pact to fight terrorism ? (A) Russia, Afghanistan, Pakistan and Tajikistan (B) Tajikistan, China, Pakistan and India (C) India, Iran, Pakistan and China (D) None of the above Ans : (A) 10. Russia recently extended base lease in (A) Georgia (B) Armenia (C) Turkey (D) Azerbaijan Ans : (A) 11. Karrar is the unmanned bomber aircraft of (A) Iraq (B) Iran (C) Turkey

(D) Pakistan Ans : (B) 12. Iran recently test-fired its (A) Gauri Missle (B) The Fateh 110 (C) Shaheen (D) None of the above Ans : (B) 13. Which African country recently adopted its new Constitution ? (A) Kenya (B) Zimbabwe (C) Mozambique (D) South Africa Ans : (A) 14. ESPO which recently came into news stands for (A) Eastern Siberia Pacific Ocean pipeline (B) Eastern Sino Philippines Ocean pipeline (C) East Siberia-Philippines Ocean pipeline (D) None of the above Ans : (A) 15. Saina Nehwal has been named the brand ambassador for (A) Orissa (B) Andhra Pradesh (C) Tamil Nadu (D) Kerala Ans : (B) 16. North Indias first Food Processing Park is being developed in (A) Haryana (B) Kerala (C) Himachal Pradesh (D) Karnataka Ans : (A) 17. Justice Barin Ghosh has recently been appointed Chief Justice of

(A) Uttarakhand High Court (B) Patna High Court (C) Calcutta High Court (D) Madras High Court Ans : (A) 18. Justice Bhagwati Prasad has recently been appointed as the Chief Justice of (A) Orissa High Court (B) Patna High Court (C) Jharkhand High Court (D) None of the above Ans : (C) 19. Who has recently been honoured with 18th Rajiv Gandhi National Sadbhavana Award ? (A) Shabana Azmi (B) Maulana Wahiduddin Khan (C) Javed Akhtar (D) None of the above Ans : (B) 20. Who among the following has not been honoured with the 2010 Ramon Magsaysay Award ? (A) Tadatoshi Akiba (B) Huo Daishan (C) Fu Quiping (D) Ratan Tata Ans : (D)

Bank of Baroda Probationary Officers Exam., 2011

(Held on 13-3-2011)

General Socio-Economic & Banking Awareness : Solved Paper

1. Trade Ministers of Key WTO member countries including India held a meeting at Davos in Switzerland on January 29, 2011. Which one of the following was the purpose of this meeting ?

(A) Negotiations for free trade (B) Negotiations to abolish Restrictive Trade Practices (C) Issues relating to agricultural subsidies (D) Negotiations for a global trade deal (E) To include Pakistan and Iran as members Ans : (D) 2. Which one of the following advices has/have been given by leading Economists to Finance Minister during their pre-budget meeting with him ? 1. To take measures to boost farm productivity only. 2. To improve supply of agricultural products only. 3. To reduce the fiscal deficit only. (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) Only 1 and 2 Ans : (D) 3. As per recent newspaper reports, which one of the following countries has signed highest number of deals to get global project finance ? (A) Australia (B) USA (C) Saudi Arabia (D) Spain (E) India Ans : (E)

4. Which of the following terms is used in Banking Field ? (A) Interest Rate Swap (B) Input Devices (C) Sedimentary (D) Zero Hour (E) Privilege Motion Ans : (A) 5. To which of the following States has the Asian Development Bank given a loan of $ 90 m for development of Power projects ? (A) Himachal Pradesh (B) West Bengal (C) Tripura (D) Arunachal Pradesh (E) Assam Ans : (E)

6. On which one of the following issues can SEBI penalize any company in India ? 1. Violation of Banking Regulation Act. 2. Violation of foreign portfolio investment guidelines. 3. For violation of Negotiable Instrument Act. (A) Only 1 (B) All 1, 2 and 3 (C) Only 1 and 2 (D) Only 2 and 3 (E) Only 2 Ans : (E) 7. In the opinion of the Governor of Reserve Bank of India, which one of the following is the reason owing to which Indias inflation is accelerating ? (A) Excess liquidity in market (B) Speculation in essential goods (C) Higher food cost (D) Commodities futures (E) None of these Ans : (A) 8. In opinion of the RBI, which one of the following is/are a threat to the smooth functioning of Indian Companies ? 1. Rising input costs. 2. High interest rates. 3. Inflation only. (A) Only 1 (B) Only 2 (C) Only 1 and 2 (D) Only 3 (E) All 1, 2 and 3 Ans : (E) 9. For which one of the following reasons Government of India has decided to waive off upfront payment of Rs. 1,400 to be made by each customer located in rural areas to get LPG connection ? 1. To help villagers to use LPG in place of firewood/kerosene. 2. To help villagers to save kerosene for agricultural activities. 3. To lure villagers to use LPG which is of substandard quality and not fit for industrial use. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 2 (E) Only 2 and 3 Ans : (A)

10. Expand the term ALM as used in Banking/Finance sector ? (A) Asset Liability Mismatch (B) Asset Liability Maturity (C) Asset Liability Management (D) Asset Liability Manpower (E) None of these Ans : (C) 11. Who amongst the following is the author of the book Half a Life ? (A) Mark Tully (B) Deepak Chopra (C) Chetan Bhagat (D) Ved Mehta (E) V. S. Naipaul Ans : (E) 12. In which one of the following states, village level marketing platform has been set up for the first time in the country ? (A) Haryana (B) Maharashtra (C) Gujarat (D) Bihar (E) Kerala Ans : (C) 13. The RBI has asked banks to spell out their policy, procedures and size of the business on which of the following aspects of banking ? (A) On-shore banking (B) Off-shore banking (C) Investments in secondary market (D) Wealth management (E) None of these Ans : (D) 14. Which of the following organizations has given a US $ 172 billion loan to India to build roads in rural areas ? (A) Asian Development Bank (B) International Monetary Fund (C) Bill Gates Foundation USA (D) World Bank (E) None of these Ans : (D) 15. Which one of the following advices has been given by Finance Minister Pranab Mukherjee to Chartered Accounts ? (A) They must highlight the credit risks

(B) They must highlight the operational risks (C) They must bring to the notice of Government tax evasions (D) They must be vigilant against window dressing of companies (E) None of these Ans : (E) 16. Who amongst the following has asked banks to adopt six step approach to prevent diversion of funds by the companies ? (A) Company Registrar (B) SEBI (C) RBI (D) AMFI (E) All of these Ans : (C) 17. Which one of the following countries has been invited to join BRIC ? (A) Indonesia (B) Bangladesh (C) South Africa (D) China (E) Argentina Ans : (C) 18. Who is Nicolas Sarkozy ? (A) French Prime Minister (B) French President (C) Russian Prime Minister (D) Russian President (E) None of these Ans : (B) 19. Through which one of the following sources domestic funds are raised by Companies ? 1. IPO only 2. FPO only 3. Commercial papers. (A) Only 3 (B) All 1, 2 and 3 (C) Only 1 and 3 (D) Only 1 (E) Only 1 and 2 Ans : (D) 20. Which one of the following was the reason owing to which Govt. wants Reserve Bank of India to tighten prudential norms for NBFCs ? (A) To reduce liquidity in the market

(B) It is as per Basel II requirements (C) It is as per Bank for International Settlement (BIS) directives (D) It is to protect NBFCs from any impact of possible economic slowdown (E) None of these Ans : (D) 21. According to World Economic Forum, which one of the following risks is the greatest risk faced by the world in the year 2011 ? (A) Credit Risk (B) Country Risk (C) Counterparty Risk (D) Sovereign Default Risk (E) None of these Ans : (D) 22. Which one of the following decisions has been taken by Govt. in respect of MGNREGA ? (A) The wages should be revised by the State Governments (B) The wages are to be revised by Planning Commission (C) The District Authorities who allot work can give differential wages (D) The wages shall be linked to inflation (E) None of these Ans : (A) 23. What are teaser loan rates charged by banks ? (A) Fixed rate of interest charged by banks (B) Floating rate of interest charged by banks (C) Rate of interest in the initial period is less and goes up subsequently (D) Rate of interest in the initial period is more and it goes down subsequently (E) None of these Ans : (C) 24. On which one of the following subjects Pranab Sen Committee has submitted its recommendations to the Govt. of India ? (A) MGNREGA (B) Food Security (C) Inflation (D) Food processing industries (E) None of these Ans : (E) 25. Expand the term CCEA as used in administrative circles (A) Cabinet Committee on External Affairs (B) Cabinet Committee on Economic Affairs (C) Cabinet Council on External Affairs (D) Cabinet Council on Economic Affairs

(E) None of these Ans : (B) 26. With which one of the following games, Baichung Bhutia is associated ? (A) Hockey (B) Golf (C) Kabaddi (D) Football (E) Tennis Ans : (D) 27. What the full form of the term LIBOR as used in financial banking sectors ? (A) Local Indian Bank Offered Rate (B) London-India Bureau of Regulations (C) Liberal International Bank Official Ratio (D) London Inter Bank Offered Rate (E) None of these Ans : (D) 28. In which one of the following States, Patratu Thermal Power Plant is proposed to be set up ? (A) Madhya Pradesh (B) Bihar (C) Jharkhand (D) West Bengal (E) Kerala Ans : (C) 29. On the basis of which of the following reasons, IMF has projected Indias GDP growth at 88 per cent in 2010-11 ? 1. Strong industrial growth. 2. Strong farm sector growth. 3. High domestics consumption demand. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 3 (E) Only 2 and 3 Ans : (C) 30. Who amongst the following is the ICC Cricketer of the year ? (A) Sachin Tendulkar (B) Kevin Pietersen (C) M. S. Dhoni (D) Sanath Jayasuriya (E) None of these

Ans : (A) 31. Who is Montek Singh Ahluwalia ? (A) Chairman, Planning Commission (B) Dy. Chairman, Planning Commission (C) Cmmerce Secretary, GOI (D) Economic Advisor to Prime Minister (E) None of these Ans : (B) 32. Who amongst the following is the Prime Minister of Australia at present ? (A) Julia Gillard (B) Kevin Rudd (C) Dilma Rousseff (D) Sebastian Vettel (E) None of these Ans : (A) 33. Expand the term FSDC which is used in financial sectors ? (A) Financial Security and Development Council (B) Financial Stability and Development Council (C) Fiscal Security and Development Council (D) Fiscal Stability and Development Council (E) None of these Ans : (B) 34. According to US Department of Agriculture, which one of the following countries in the world is the largest producer of dairy products ? (A) Australia (B) USA (C) China (D) Norway (E) India Ans : (E) 35. With which one of the following games is Tiger Woods associated ? (A) Golf (B) Swimming (C) Tennis (D) Table Tennis (E) Badminton Ans : (A) 36. Which one of the following is largest producer of power in India ? (A) Reliance Power (B) Tata Power

(C) National Hydro Power (D) Adani Power (E) NTPC Ans : (C) 37. For which one of the following States, centre has appointed interlocutors ? (A) H.P. (B) J & K (C) Nagaland (D) Manipur (E) None of these Ans : (B) 38. Expand the term GSLV (A) Geosynchronous Satellite Launch Vehicle (B) Global Satellite Launch Vehicle (C) Geosynchronous Station Launch Vehicle (D) Global Station Launch Vehicle (E) None of these Ans : (A) 39. For which one of the following reasons Basel II norms are to be followed by Commercial Banks ? (A) Risk management (B) Adoption of international accounting standards (C) Restriction on bonus payments to bank executives (D) Transparency in disclosures (E) None of these Ans : (A) 40. With which one of the following sports, the name of Parupalli Kashyap is associated ? (A) Chess (B) Tennis (C) Badminton (D) Athletics (E) None of these Ans : (C) 41. Which of the following terms is used in cricket ? (A) Centre forward (B) Goal (C) Love (D) LBW (E) Bulls eye Ans : (D)

42. With which one of the following activities, Golden Globe Awards are associated ? (A) Journalism (B) Social work (C) Peace initiatives (D) Films (E) None of these Ans : (D) 43. Goodbye Shahzadi is a book written by (A) Shyam Bhatia (B) Ashok Mehta (C) Janardhan Thakur (D) Arun Gandhi (E) None of these Ans : (A) 44. Malayalam writer Akkithom Achyuthan Nambhodiri will be the recipient of which of the following awards ? (A) Moortidevi award (B) Pulitzer Prize (C) Best Asian Author (D) Kalidas Sanman (E) Arjuna Award Ans : (A) 45. With which one of the following sports, Narain Karthikeyen is connected ? (A) F1 (B) Tennis (C) Badminton (D) Table Tennis (E) Snooker Ans : (A) 46. In which one of the following States, Sabari mala temple is located ? (A) Tamil Nadu (B) A.P. (C) Kerala (D) Karnataka (E) None of these Ans : (C) 47. Which one of the following will set up core banking infrastructure for rural banks ? (A) RBI (B) NABARD (C) SIDBI

(D) IBA (E) None of these Ans : (B) 48. Who is Robert Zoelick ? (A) IMF Chief (B) World Bank President (C) ADB President (D) Chief UNIDO (E) None of these Ans : (B) 49. Justice K. G. Balakrishnan is holding the post of (A) Chief Justice of India (B) Chairman, National Human Rights Commission (C) Cabinet Secretary, Govt. of India (D) Revenue Secretary, Govt. of India (E) None of these Ans : (B) 50. Mehbooba Mufti belongs to which one of the following political parties ? (A) National Conference (B) PDP (C) NCP (D) Janta Dal (E) None of these Ans : (B)

Bank of Maharashtra Probationary Officer Exam., 2010

General Awareness : Solved Paper

(Held on 19-12-2010) 1. Which of the following statements is/are correct about the economy of China ? (It was recently in news). 1. China is the worlds fastest growing economy with average growth rate of 10% for the last 30 years. 2. China is the worlds second largest economy by purchasing power parity. 3. Chinas economy was valued a little higher than that of Japans. (A) Only 1 (B) Only 2 (C) All 1, 2 and 3 (D) Only 2 and 3

(E) Only 1 and 2 Ans : (D) 2. As per the news published a few days back Reliance Power got a huge loan from the US Export-Import Bank for building a coal fired based power plant in India. The plant will be developed in (A) Sasan (MP) (B) Angul (Odisha) (C) Banswara (Rajasthan) (D) Barauni (Bihar) (E) None of these Ans : (A) 3. As per the reports published in various newspapers, the Reserve Bank of India has directed all core investment companies in India to register themselves with it if their asset size is 100 crore or more. Which of the following is True about the Core Investment Companies (CICs) ? 1. CICs are non-banking finance companies. 2. CICs invest in shares for the purpose of taking stake in a company rather than for trading. 3. CICs are required to register with RBI as most of them were found involved in business in foreign countries and not in India. (A) Only 1 (B) Only 1 and 2 (C) Only 2 and 3 (D) All 1, 2 and 3 (E) None of these Ans : (B) 4. As per newspaper reports, the RBI recently divested its stake in NABARD. Now RBIs stake in it is only (A) 10% (B) 5% (C) 3% (D) 1% (E) None of these Ans : (D) 5. The Union Commerce and Industry Minister, while talking to press expressed his desire that India and USA both should work together for a Comprehensive Economic Partnership Agreement (CEPA). How will this help India ? 1. It is the agreement which allows liberalization of trade in goods by cutting/eliminating tariffs on most or all goods from both the sides. 2. It will help in easing of the flow of investment and special treatment to each other. 3. It will help USA to outsource more jobs to Indian companies and also to employ more

Indians without any restriction. (A) Only 1 and 2 (B) Only 1 (C) Only 2 and 3 (D) Only 1 and 3 (E) None of these Ans : (D) 6. Immediately prior to Prithviraj Chavan who amongst the following was the Chief Minister of Maharashtra ? (A) Vilasrao Deshmukh (B) Ashok Chavan (C) Ajit Pawar (D) R.R. Patil (E) None of these Ans : (B) 7. The RBI has been asked to study and give a report on the loan waiver scheme announced by the United Progressive Alliance Govt. for farmers in 2008. How much amount was given by the Govt. for the scheme ? About (A) 10,000 crore (B) 20,000 crore (C) 50,000 crore (D) 71,680 crore (E) 2,00,000 crore Ans : (D) 8. Which of the following organizations/agencies has sought an emergency fund of 1000 crore from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers ? (A) Regional Rural and Cooperative Banks (B) RBI (C) Micro Finance Institutions (D) NABARD (E) None of these Ans : (B) 9. The ministry of Finance recently released a comprehensive paper on Govt. debt. Which of the following is/are true about the same ? 1. The paper presents the road map for general debt to be raised by the Govt. of India during the period of 2011-2015 which is the period of the awards of the 13th Finance Commission. 2. As per the estimates, the target debt in the terminal year 2014-15 will be lower than whatever recommended by the 13th Finance Commission. 3. The paper has recommended that the Govt. should try to generate resources in such a way that it does not have to depend much on debt. The total debt should not be more

than 1/3rd of the total requirements. (A) Only 1 (B) Only 2 (C) Only 1 and 2 (D) Only 2 and 3 (E) None of these Ans : (C) 10. As a measure to check inflation, the RBI on November 2, 2010 increased its short term indicative rates Repo and Reverse Repo by (A) 25 basis points (B) 50 basis points (C) 75 basis points (D) 100 basis points (E) None of these Ans : (A) 11. What is the Cash Reserve Ratio (CRR) at present ? (A) 4% (B) 45% (C) 5% (D) 55% (E) None of these Ans : (E) 12. The Finance Ministry has decided to provide 8,700 crore as equity support to public sector banks so that they can raise funds from the capital market without diluting the Govt. holding in them. What is the Govt. holding in most of the public sector banks ? (A) 49% (B) 50% (C) 51% (D) 59% (E) None of these Ans : (C) 13. Which of the following is not amongst the core industries/sectors ? (A) Coal (B) Service sector (C) Crude oil (D) Power (E) Steel Ans : (E) 14. Who amongst the following Indian players won maximum number of Gold Medals (4 gold) in Commonwealth Games 2011 held in Delhi ? (A) Saina Nehwal

(B) Deepika Kumari (C) Sushil Kumar (D) Gagan Narang (E) None of these Ans : (D) 15. Mr. Zhou Yong Kang was recently on a visit to India. Who is Mr. Zhou Yong Kang ? (A) President of China (B) Member of the Polit Bureau of China (C) Prime Minister of Vietnam (D) Member of the Polit Bureau of Vietnam (E) None of these Ans : (B) 16. The countries these days are most worried about the currency war. They are arguing about whose actions harmed the world economy the most. What are the views of the rich countries, particularly USA, in this regard ? 1. They feel that it was China who was unwilling to allow the Yuan to rise. 2. They feel that it was India who had snatched jobs in most of the European countries and USA. This made the situation more grim. 3. Some countries feel that it was Japan who allowed swapping of its currency with other nations and created a grim situation in world market. (A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these Ans : (A) 17. As per reports in various newspapers, Ben Bernanke, the Chairman of the Federal Reserve has predicted a bleak outlook for the economy in his country. This means the economy in which of the following countries is likely to be gloomy in the days to come ? (A) UK (B) Australia (C) Canada (D) Germany (E) USA Ans : (E) 18. India recently signed some agreements of strategic importance with Japan. Which of the following areas are covered under these agreements ? 1. Some mega infrastructure projects in North-Western India. 2. Implementation of a Comprehensive Economic Partnership Agreement. 3. Indias role in resolving crisis in Sudan. (A) Only 1

(B) Only 2 (C) Only 3 (D) Only 1 and 2 (E) Only 2 and 3 Ans : (D) 19. Which of the following is true about the Sudanese Civil War which is going on since last several years ? 1. The war started in 2003 when the Sudan Liberation Movement Army and some others took up arms against the Govt. of Sudan. 2. The main accusation was that the Govt. is involved in genocide of blacks in favour of Arabs. 3. The main cause of the war is Govt.s support to European Nations and non willingness to join OPEC. The other party feels Sudan should play active role in OPEC as it is one of the main oil producing nations. (A) Only 1 and 2 (B) Only 2 and 3 (C) Only 3 (D) All 1, 2 and 3 (E) None of these Ans : (A) 20. FBTR is a term/abbreviated name related to the area of (A) Nuclear Power (B) Agriculture (C) Economy (D) Medical Science (E) Sports Ans : (A) 21. Worlds largest Diamond Bourse was recently inaugurated in (A) New Delhi (B) Kolkata (C) Hyderabad (D) Jaipur (E) Mumbai Ans : (E) 22. Which of the following summits (17th summit) was organized in Hanoi in October 2010 in which Dr. Manmohan Singh took part ? (A) G-8 (B) G-15 (C) OPEC (D) EU (E) ASEAN Ans : (E)

23. The European Union is recently considering its membership to Serbia. Years back Serbia decided to become an independent nation by breaking up from (A) Russia (B) Yugoslavia (C) Armenia (D) Lithuania (E) None of these Ans : (B) 24. Busher Nuclear Plant was recently in news. The plant is located in (A) Iraq (B) Russia (C) Iran (D) UAE (E) North Korea Ans : (C) 25. N. K. P. Salve Challenger Series is a tournament associated with which of the following games ? (A) Hockey (B) Football (C) Cricket (D) Lawn Tennis (E) Badminton Ans : (C) 26. Irani Trophy is associated with (A) Hockey (B) Badminton (C) Football (D) Lawn Tennis (E) Cricket Ans : (E) 27. Trecia Kaye Smiths name was in news recently. She is a well known (A) Athlete (B) Journalist (C) Film Actress (D) Politician (E) None of these Ans : (A) 28. Dilma Rousseff has taken over as the first female President of (A) Japan (B) Brazil

(C) Cameroon (D) Romania (E) Portugal Ans : (B) 29. Miss World 2010 contest in which Alexandria Mills was crowned Miss World was organized in (A) China (B) India (C) Britain (D) France (E) None of these Ans : (A) 30. Roger Federer won the Stockholm open 2010 by defeating (A) Leander Paes (B) Mikhail Youzhny (C) Rafael Nadal (D) Gael Monfils (E) Florian Mayer Ans : (E) 31. Harward Jacobsons name was recently in news. Who is Harward Jacobson ? (A) Film Actor (B) Politician (C) Author (D) Sports person (E) Journalist Ans : (C) 32. Which of the following is recognized as the biggest cause of Global Hunger in the world ? (A) Inflation (B) Poor management of public distribution system (C) Unemployment and/or underemployment (D) Malnutrition (E) All of these Ans : (D) 33. What is the purpose of National Green Tribunal, which started functioning recently ? (A) It is a Save Earth Campaign (B) It will hear the cases related to environmental degradation (C) It is launched to promote awareness towards climatic changes (D) Its main aim is to give suggestionshow to protect and increase forest cover in India (E) None of these Ans : (B)

34. Shri Nitish Kumar who won the recent elections held in Bihar is from which of the following parties ? (A) Congress (I) (B) BSP (C) JD (U) (D) Communist Party of India (E) None of these Ans : (C) 35. The BridgeThe Life and Rise of Barack Obama, is a book written by (A) Cynthia Tucker (B) Sarah Palin (C) Barbara Walters (D) Michelle Obama (E) David Remnick Ans : (E) 36. Human Rights Day is observed on which of the following dates ? (A) December 15th (B) December 20th (C) December 10th (D) November 15th (E) November 20th Ans : (C) 37. The 8th Asia-Europe Meeting (ASEM) was organized in October 2010 in (A) New Delhi (B) Paris (C) Dhaka (D) London (E) Brussels Ans : (E) 38. Dale T. Mortensen and Christopher A. Pissarides are the joint winners of the Nobel Prize 2010 in (A) Medicine (B) Economics (C) Literature (D) Peace (E) Physics Ans : (B) 39. Mr. O. N. V. Kurup who is the winner of the Jnanpith Award, announced recently, writes in (A) Tamil

(B) Telugu (C) Malayalam (D) English (E) Hindi Ans : (C) 40. The Govt. of India recently brought an IPO to offload its 10% stake in which of the following companies ? (A) Hindustan Organic Chemicals Ltd. (B) Electronics Corporation of India Ltd. (C) Steel Authority of India Ltd. (D) Air India Ltd. (E) Coal India Ltd. Ans : (E) 41. Which of the following terms is not used in the field of banking and finance ? (A) Blue chip companies (B) Commercial paper (C) Hedge (D) Premium Bonds (E) Wobbe Index Ans : (E) 42. Which of the following prizes/award is not given for excellence in literature ? (A) Murtidevi Award (B) Arjuna Award (C) Vyas Samman (D) Pulitzer Prize (E) Saraswati Samman Ans : (B) 43. Which of the following schemes is not launched by the Govt. of India ? (A) Mid Day Meal Scheme (B) Rural Health Mission (C) Programme for Control of Blindness (D) Jeevan Anurag (E) ASHA Ans : (E) 44. Which of the following programmes is run by the Govt. of India to provide safeguard against starvation during the period of natural calamities ? (A) Targeted Public Distribution System (B) Antyodaya Anna Yojana (C) National Food for work programme (D) Village Grain Bank Scheme (E) None of these

Ans : (E) 45. India is not self-sufficient in the production of (A) Sugar (B) Milk (C) Wheat (D) Edible oil (E) Jute Ans : (E) 46. Which of the following is a famous Pharma Company in India ? (A) HCL (B) BPCL (C) IDPL (D) Infosys Technology (E) Grasim Industries Ans : (C) 47. Rohan Bopanna who represented India in International events is a famous (A) Football player (B) Lawn Tennis player (C) Cricket player (D) Hockey player (E) Athlete Ans : (B) 48. As per Fortune Magazine who amongst the following Indians is The Businessman of the Year ? (A) Anil Agarwal (B) Kumarmangalam Birla (C) Mukesh Ambani (D) Ratan Tata (E) None of these Ans : (E) 49. The World Habitat Day is observed on which of the following dates ? (A) October 24 (B) October 14 (C) November 4 (D) November 14 (E) None of these Ans : (E) 50. Chewang Norphel who was given prestigious Jamnalal Bajaj Award 2010 recently, has made contributions in the field of (A) Rural development

(B) Literature (C) Folk art/music (D) Sports (E) Film production Ans : (A)

Reserve Bank of India Grade B Officers Exam., 2011

(Held on 6-2-2011)

General Awareness : Solved Paper

1. What role do Micro, Small and Medium Enterprises (MSMEs) play in a countrys economic and industrial development ? 1. They have the capacity to absorb skilled and unskilled labour available in the country. 2. Such institutions help in distribution of income in a wide spectrum and do not allow it to get concentrated in few hands or in few areas. 3. They help in eradication of poverty by providing selfemployment opportunities. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 3 (E) All 1, 2 and 3 Ans : (E) 2. Which of the following statements about the Indian Economy is correct ? (A) Indian economy is as developed as that of China (B) About 70% Indians are involved in some type of selfemployment and are the owners of some or the other micro or small enterprise (C) In India single biggest employment is agriculture and allied activities (D) About 48% Indian workforce is employed in foreign countries or in organizations assisted by foreign capital (E) None of these Ans : (C) 3. Which of the following is/are correct about the problems of Indian Agriculture ? 1. Large agricultural subsidies are hampering productivityenhancing investments. 2. Irrigation infrastructure is in bad shape and needs immediate improvement. 3. Frequent takeovers of fertile land by private companies and multinationals to launch big business complexes. (A) Only 1 (B) Only 1 and 2 (C) Only 1 and 3

(D) All 1, 2 and 3 (E) None of these Ans : (D)

4. As per news in various journals, many banks have failed to achieve agri-loan target fixed by the RBI for the year 2010-11. What was the target fixed for the year ? (A) 10% (B) 15% (C) 18% (D) 24% (E) 30% Ans : (C) 5. Which of the following statements about Agro and Allied activities is not correct ? (A) Farmers do not get adequate credit for purchase of cattle (B) There is a need to improve breed and genetic characteristics of the cattle folk (C) India has huge forest cover and also degraded and marshy land which can be used for productive purposes (D) India is the 10th largest producer of medicinal and aromatic plants. But the products are not of commercial value (E) Animal husbandry plays an important role in providing sustainability under Rain fed conditions Ans : (C) 6. Which of the following schemes launched by the Govt. of India aims at enhancing the livelihood security of the people in rural areas by guaranteeing hundred days of employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work ? (A) TRYSEM (B) Pradhan Mantri Gram Sadak Yojana (C) Kutir Jyoti Scheme (D) ASHA (E) MGNREGA Ans : (E) 7. In some parts of India, farmers face acute distress because of heavy burden of debt from noninstitutional lenders. Who can be called a non-institutional lender ? (A) Small Banks (B) Grameen Banks (C) Credit Cooperative Societies (D) Micro Finance Institutions (E) Money Lenders Ans : (E) 8. The South Asian Free Trade Agreement (SAFTA) was introduced with a view of

levying how much custom duty for trading any product within the SAARC zone ? (A) 5% (B) 4% (C) 2% (D) 1% (E) No custom duty Ans : (E) 9. Which of the following organisation prepares rural credit plans on annual basis for all districts in India, which in turn from the base for annual credit plans of all rural financial institutions ? (A) SIDBI (B) NABARD (C) RBI (D) Indian Banks Association (E) CII Ans : (B) 10. Which of the following is TRUE about the current population trend(s) in India ? 1. Every year India adds more people to the worlds population than any other country. 2. Currently India has a young population which will grow somewhat older largely as a result of decline in fertility. 3. The National Family Planning Programme did not contribute much in controlling fertility rate (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 2 (E) All 1, 2 and 3 Ans : (D) 11. In economic terms, which of the following factors determine the Individuals demand of a product/commodity ? 1. Price of a commodity. 2. Income of the individual. 3. Utility and quality of a commodity. (A) Only 1 (B) Only 2 (C) Only 3 (D) Only 1 and 3 (E) All 1, 2 and 3 Ans : (E) 12. Which of the following terms is used in the field of economics ? (A) Adiabatic (B) Bohr Theory

(C) Plasma (D) Barter System (E) Viscosity Ans : (D) 13. Pascal Lamy calls on trade negotiators to move out of their comfort zones towards agreements, was the headline in some major newspapers. This news is associated with which of the following organizations/agencies ? (A) World Trade Organization (B) International Monetary Fund (C) World Bank (D) United Nations Organisations (E) North Atlantic Treaty Organisation Ans : (A) 14. Which of the following is not a function of the Planning Commission of India ? (A) Assessment of the material, capital and human resources of the country (B) Formulation of plans for the most effective and balanced utilization of countrys resources (C) Public cooperation in national development (D) Preparation of annual budget of the country and collection of taxes to raise capital for the implementation of the plans (E) Determination of stages in which the plan should be carried out Ans : (D) 15. Which of the following periods represents the period of the first Five Year Plan in India ? (A) 1948 53 (B) 1947 52 (C) 1952 57 (D) 1950 55 (E) 1951 56 Ans : (E) 16. Which of the following is the name of the process available to common people to seek courts intervention in matters of public interest ? (A) Public Interest Litigation (PIL) (B) Habeas Corpus (C) Ordinance (D) Residuary power (E) None of these Ans : (A) 17. Indias foreign policy is based on several principles, one of which is (A) Panchsheel (B) Satyamev Jayate

(C) Live and Let Live (D) Vasudhaiv Kutumbkam (E) None of these Ans : (A) 18. As we know thousands of tonnes of foodgrain was washed away in the floods in Haryana and Punjab a few months back. This incident is an example which indicates that there is a scope for improvement in our machinery controlling our (A) Mid Day Meal Scheme (B) Public Distribution System (C) Food for Work Programme (D) Village Grain Bank Scheme (E) Operation Flood Scheme Ans : (B) 19. President Barack Obama was on a visit to India a few months back. His visit is said to have forged both the nations into a new era of relations. India managed to sign a special agreement with US in which of the following fields/areas as a byproduct of the visit of Obama ? 1. Energy sector and Nuclear energy as US has lifted sanctions on supply of high tech machines. 2. Skill Development Programmes in IT sector in which US has super-specialisation. 3. Training in management of Micro finance Institutions. (A) Only 1 (B) Only 2 (C) Only 1 and 3 (D) Only 2 and 3 (E) Only 1 and 2 Ans : (A) 20. Many times we read a term Tax Haven in various newspapers. What does it mean ? 1. It is a country where certain taxes are levied at a very low rate. 2. It is a country where people can dump their illegal money without any problem. 3. It is a place where foreigners can work without paying any tax on their income. (A) Only 1 and 2 (B) Only 2 (C) Only 2 and 3 (D) Only 1 (E) All 1, 2 and 3 Ans : (E) 21. As per existing law, what is the minimum per day wages paid to a worker from unorganised sector in India ? (A) 50 (B) 75

(C) 100 (D) 125 (E) No such law is there Ans : (C) 22. Who amongst the following was awarded the Indira Gandhi Peace Prize for 2010 ? (A) Ronald Noble (B) Luiz Inacio Lula DSilva (C) Mohammed Elbaradei (D) Aung San Su Kyi (E) None of these Ans : (B) 23. Which of the following is not a Poverty Eradication Programme launched by the Govt. of India ? (A) Swarnjayanti Gram Swarozgar Yojana (B) Jawahar Gram Samridhi Yojana (C) National Social Assistance Programme (D) ADHAR (E) National Family Benefit Scheme Ans : (D) 24. According to the World Bank estimate about 40% Indians are living below International Poverty line of US $ (A) 1 per day (B) 125 per day (C) 2 per day (D) 25 per day (E) 3 per day Ans : (B) 25. The 10th Trilateral Ministerial Meeting of RIC group was organized in November 2010. Who are the members of the RIC ? (A) RussiaIranChina (B) RussiaIndiaChina (C) RomaniaIranCanada (D) RomaniaIsraelChile (E) RussiaIndiaCroatia Ans : (B) 26. India and Syria recently decided to double their trade in next 2 years. Indian Govt. has decided to export which of the following commodities to Syria ? (A) Natural gas (B) Milk (C) Oil (D) Wheat

(E) All of these Ans : (E) 27. India has sanctioned a 26 million grant to which of the following countries for development of tube wells ? (A) Myanmar (B) Bangladesh (C) Nepal (D) Pakistan (E) Sri Lanka Ans : (C) 28. Which of the following is the name of the scheme launched by the Govt. of India for adolescent girls ? (Launched in November 2010) (A) Swawlamban (B) SABALA (C) Aadhar (D) ASHA (E) None of these Ans : (B) 29. Many times we see in financial journals/bulletins a term M3. What is M3 ? (A) Currency in circulation on a particular day (B) Total value of the foreign exchange on a particular day (C) Total value of export credit on a given date (D) Total value of the tax collected in a year (E) None of these Ans : (E) 30. As per news in various newspapers, Govt. has allocated a huge sum of 31,000 crore for RTE. What is full form of RTE ? (A) Right of Education (B) Reforms in Technical Education (C) Return to Empowerment (D) Right to Empowerment (E) Renewable Technology for Energy Ans : (A) 31. Which of the following is not a major function of the RBI in India ? (A) Issuance of currency notes (B) To facilitate external trade and payment and developing a foreign exchange market in India (C) Maintaining price stability and ensuring adequate flow of credit to productive sectors (D) Taking loans/credit from World Bank/IMF and ADB etc., and reallocating it for various activities decided by the Govt. of India (E) Formulation and monitoring the monetary and credit policy

Ans : (C) 32. The RBI has regional offices at various places. At which of the following places it does not have an office ? (A) Kota (B) Shimla (C) Lucknow (D) Panaji (E) Guwahati Ans : (C) 33. Which of the following organizations/agencies has given a US $ 407 billion loan to India to boost up its micro finance services in unbanked areas ? (A) IMF (B) World Bank (C) Bank of Japan (D) ADB (E) Jointly by IMF and ADB Ans : (B) 34. The Prime Ministers Economic Advisory Council (PMEAC) has projected that the Indian Exports will grow by what percentage during 2010-11 ? (A) 15% (B) 18% (C) 22% (D) 24% (E) 28% Ans : (B) 35. Which of the following organisations/agencies has given the estimate that the India will be third largest FDI recipient in 201012 ? (A) UNCTAD (B) WTO (C) World Bank (D) IMF (E) None of these Ans : (A) 36. The performance of which of the following industries is considered performance of a core industry ? (A) Garments (B) Leather (C) IT (D) Oil and Petroleum (E) Handicrafts Ans : (D)

37. Who amongst the following is not a recipient of Nobel Prize in economics ? (A) Peter A. Diamond (B) Dale T. Mortensen (C) Amartya Sen (D) Paul Krugman (E) Robert G. Edwards Ans : (E) 38. Basel Committee has given its recommendations on which of the following aspects of banking operations ? (A) Marketing of bank products (B) Priority sector lending (C) Risk Management (D) Micro financing (E) All of these Ans : (C) 39. Which of the following is the rank of India in Human Development Report 2010 prepared by the UNO ? (A) 99 (B) 100 (C) 115 (D) 119 (E) None of these Ans : (D) 40. Which of the following was/where the key objectives of the RBIs review of Monetary and Credit Policy 2010-11 which was reviewed again on 2nd November 2010 ? 1. To sustain the anti inflationary thrust. 2. To maintain an interest rate regime consistent with price. 3. To provide extra tax incentives to exporters who were in stress due to market fluctuations. (A) Only 1 (B) Only 2 (C) Only 1 and 2 (D) All 1, 2 and 3 (E) None of these Ans : (A) 41. PIIGS is the group of nations falling under (A) Euro zone (B) Asia Pacific (C) SAARC (D) NATO (E) Commonwealth

Ans : (A) 42. Which of the following is/are the preconditions, the IMF has put to provide bail out package to Ireland ? 1. It should gradually lower down unemployment benefits. 2. It should bring down the minimum wages in order to boost employment. 3. It should import some of the crucial commodities from non euro countries as an immediate measure to improve shortage of the same. (A) Only 1 and 2 (B) Only 2 and 3 (C) Only 1 and 3 (D) Only 1 (E) All 1, 2 and 3 Ans : (B) 43. India is self-sufficient in production of which of the following commodities ? (A) Edible oil (B) Milk (C) Pulses (D) Natural gas (E) All of these Ans : (B) 44. Which of the following is used as a fuel in Nuclear power stations in India ? (A) Thorium (B) Copper (C) Tin (D) Chromium (E) All of these Ans : (A) 45. Which of the following States has taken up the job of improving Dams with the help of the World Banks Dam Rehabilitation and Improvement project ? (A) Kerala (B) Gujarat (C) Tamil Nadu (D) Uttar Pradesh (E) Guwahati Ans : (A) 46. Nitish Kumar led National Democratic Alliance won how many seats in recently held assembly elections in Bihar ? (A) 150 (B) 243 (C) 200 (D) 206

(E) None of these Ans : (D) 47. Who amongst the following is the author of the book Development as Freedom ? (A) M. S. Swaminathan (B) C. Rangarajan (C) Manmohan Singh (D) Y. V. Reddy (E) Amartya Sen Ans : (E) 48. Which of the following terms is used in Finance and Banking ? (A) Line of Sight (B) Scattering loss (C) Revenue (D) Oscillation (E) Shielding Ans : (A) 49. Who amongst the following is a famous economist ? (A) Richard Dawkins (B) Alan Greenspan (C) Vernon Heywood (D) Olivar Sachs (E) Stephan Hawking Ans : (B) 50. Who amongst the following has never held post of the Governor of the RBI ? (A) C. Rangarajan (B) L. K. Jha (C) Manmohan Singh (D) Bimal Jalan (E) Usha Thorat Ans : (E)

Indian Bank Probationary Officers Exam., 2011

(Held on 2-1-2011) General Awareness : Solved Paper

1. On which one of the following Head of Expenses, the expenses of the Government of India are highest ? (A) Food subsidy (B) Fertilizer subsidy (C) Pradhan Mantri Gram Sadak Yojana (D) Maintenance of national highways (E) Oil subsidy Ans : (A) 2. Which one of the following foreign agencies will assist the municipal agencies to improve quality of municipal schools through its School Excellence Programmes (SEP) ? (A) IMF (B) UNDP (C) UNICEF (D) ADB (E) None of these Ans : (C) 3. Which of the following carries out Open Market Operations ? (A) Finance Ministry (B) External Affairs Ministry (C) Reserve Bank of India (D) Planning Commission (E) Ministry of Commerce Ans : (C)

4. Who among the following Ministers will hold telecom portfolio in addition to his own portfolio till next reallotment ? (A) Kamal Nath (B) Kapil Sibal (C) Pranab Mukherjee (D) Mamta Banerjee (E) None of these Ans : (B) 5. Under provisions of which one of the following Acts, the RBI issues directives to the Banks in India ? (A) RBI Act (B) Banking Regulation Act (C) Essential Commodities Act (D) RBI and Banking Regulation Act (E) None of these Ans : (B)

6. Which one of the following tools is used by RBI for selective credit control ? (A) It advises banks to lend against certain commodities (B) It advises banks to recall the loans for advances against certain commodities (C) It advises banks to charge higher rate of interest for advance against certain commodities (D) It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable (E) None of these Ans : (C) 7. For which one of the following Loan Products teaser loans are offered by Banks ? (A) Education Loans (B) Commercial Loans (C) Loans against security of gold (D) Retail Trade Loans (E) Home Loans Ans : (E) 8. The Commonwealth Games 2010 were held in Delhi from October 3 to 14, 2010. Who amongst the following picked up the Games first gold medal ? (A) Augustina Nwaokolo (B) Ravinder Singh (C) Azhar Hussain (D) Carol Huynh (E) None of these Ans : (A) 9. In which one of the following cities was the recent meet of G20 Countries organised ? (A) Tokyo (B) Seoul (C) London (D) Beijing (E) Singapore Ans : (B) 10. As per recent newspaper reports, which one of the following countries (among the given) has highest literacy rate ? (A) India (B) Sri Lanka (C) China (D) Vietnam (E) Bangladesh Ans : (D)

11. Which one of the following has decided to give guarantee for infra loans ? (A) IDBI (B) SBI (C) IIFCL (D) SIDBI (E) None of these Ans : (C) 12. In which one of the following States is the uranium project proposed to be set up ? (A) Manipur (B) Meghalaya (C) Orissa (D) Assam (E) Nagaland Ans : (C) 13. Amongst 169 countries on Human Development Index which one of the following is Indias rank ? (A) 89 (B) 91 (C) 119 (D) 129 (E) 138 Ans : (C) 14. What is Kaveri ? (A) Indias indigeneous aircraft engine (B) Indias low cost laptop (C) Indias Air to Air Missile (D) Indias guided Surface to Air Missile (E) Unmanned Aircraft acquired from Israel Ans : (A) 15. An increasing finished good stock as % to sales of a manufacturing Company indicates that . 1. the market is getting competitive 2. the quality of the goods is not upto the mark 3. the production cost has increased 4. the production has decreased (A) Only 1 and 2 (B) Only 2 and 3 (C) Only 3 and 4 (D) Only 3 (E) Only 4 and 1 Ans : (A)

16. Which one of the following has got RBI nod to issue prepaid cards to its clients ? (A) LIC (B) GIC (C) SIDBI (D) NABARD (E) None of these Ans : (A) 17. For which one of the following reasons is an amendment in Companies Bill 2009 proposed ? (A) To provide more powers to Department of Company Affairs (B) To provide regulatory powers to Department of Company Affairs (C) To make Indian Accounting Standards applicable with effect from 1.4.2011 (D) To ensure smooth convergence of the Indian Accounting Standards with IFRS (E) None of these Ans : (E) 18. As per recent newspaper reports, Indias public debt rises 28 per cent to Rs. 28 lakh crore. Which one of the following is the reason that has forced commercial banks to buy Government securities ? (A) Lack of credit growth (B) Increase in credit growth (C) Raising of repo rate (D) Raising of reverse repo rate (E) None of these Ans : (A) 19. In which one of the following States Sariska Tiger Reserve is located ? (A) M. P. (B) U. P. (C) Orissa (D) Gujarat (E) Rajasthan Ans : (E) 20. On which one of the following characters, Biometric security is based ? (A) Finger prints and palm recognition only (B) Face recognition and voice recognition only (C) Hand writing and manual recognition only (D) Only (A) and (B) (E) All (A), (B) and (C) Ans : (D) 21. Which one of the following may be the consequence of buying forex in the marked by the RBI ? (A) It leads to inflation

(B) It leads to control over inflation (C) It does not affect inflation (D) It results into deflation (E) None of these Ans : (A) 22. Under provisions of which one of the following Acts, the Reserve Bank of India has the power to regulate, supervise and control the banking sector ? (A) RBI Act (B) Banking Regulation Act (C) Negotiable Instrument Act (D) RBI and Banking Regulation Act (E) None of these Ans : (B) 23. Who amongst the following is the author of the book The God of Small Things ? (A) Chetan Bhagat (B) V. S. Naipul (C) Namita Gokhale (D) Kiran Desai (E) Arundhati Roy Ans : (E) 24. Which one of the following has proposed $ 11 billion infrastructure debt fund ? (A) NABARD (B) SBI (C) RBI (D) Ministry of Finance, Govt. of India (E) Planning Commission Ans : (D) 25. Myanmars pro-democracy leader Suu Kyi is a . (A) 42 years old politician (B) Bharat Ratna (C) Military General (D) Nobel Prize winner (E) None of these Ans : (D) 26. Which one of the following factors influence working capital of a unit ? (A) Seasonality of operations only (B) Production Policy only (C) Suppliers Term only (D) Only (A) and (B) (E) All (A), (B) and (C) Ans : (E)

27. One of the following states is a major producer of spices . (A) Karnataka (B) Tamil Nadu (C) Kerala (D) Gujarat (E) Manipur Ans : (C) 28. The NAV of a mutual fund (A) Is always constant (B) Keeps going up at a steady rate (C) Fluctuates with market price movements (D) Cannot go down at all (E) None of these Ans : (E) 29. The expansion of TRAI is . (A) Telecom Regulations and Inspection (B) Transport Regulatory Authority of India (C) Train Regulatory Authority of India (D) Telecom Regulatory Authority of India (E) Transfer Regulations Act of India Ans : (D) 30. ASBA, a facility while applying / submitting an application for purchase of shares under a public issue, is . (A) Applications Simple Balance Amount (B) Amount Saved and Balance in Account (C) Already Savings Blocked Amount (D) Applications Supported by Blocked Amount (E) None of these Ans : (D) 31. A Saving Bank Deposit Account is one where . (A) Amounts are deposited and are withdrawn as per requirement of the customers (B) The deposits are made only once in a year (C) Periodical Fixed amount are deposited month wise and withdrawals are allowed after a fixed period (D) All the above (E) None of these Ans : (A) 32. Who is the Chief Minister of Maharashtra at present ? (A) Ashok Chavan (B) R. R. Patil

(C) Vilasrao Deshmukh (D) Sushil Kumar Shinde (E) None of these Ans : (E) 33. The expansion of CDMA is . (A) Calculated Division of Many Applications (B) Computer Divided Multiple Access (C) Code Diversified Memory Applications (D) Code Division Multiple Access (E) None of these Ans : (D) 34. Merdeka Cup is associated with the game of . (A) Tennis (B) Hockey (C) Badminton (D) Cricket (E) Football Ans : (E) 35. Which of the following is a financial asset ? (A) Gold (B) Silver (C) Shares in a demat account (D) Land & buildings (E) None of these Ans : (C) 36. Zero balance account is generally allowed to be opened for . (A) Salaried class (B) businessmen (C) foreign customers (D) children (E) Senior Citizens Ans : (A) 37. In Deposits Account KYC (Know Your Customer) has been implemented in 2002 as per directive of . (A) IBA (B) RBI (C) Ministry of Finance (D) SEBI (E) IRDA Ans : (B)

38. The regulator of the banking system in India is (A) AMFI (B) Finance Minister (C) SEBI (D) IBA (E) RBI Ans : (E) 39. Ten Rupee notes contain the signature of (A) Finance Secretary, GOI (B) Chairman, State Bank of India (C) Governor, Reserve Bank of India (D) Finance Minister, GOI (E) Prime Minister Ans : (C) 40. Statue of Liberty is the national monument of . (A) Italy (B) Australia (C) France (D) Denmark (E) USA Ans : (E) 41. Loan against the security of immovable property is by executing an agreement of . (A) Assignment (B) Pledge (C) Transfer (D) Mortgage (E) None of these Ans : (D) 42. Credit Rating . (A) is used to rate the borrowers while giving advances (B) is used to work out performance of the employees (C) is used to calculate the number of excellent audit rated branches (D) is NOT used in any Bank (E) is necessary before giving promotion to employees Ans : (A) 43. Who amongst the following is the recipient of the Dadasaheb Phalke Award 2010 ? (A) Javed Akhtar (B) Amitabh Bachchan (C) Gulzar (D) Hema Malini

(E) None of these Ans : (E) 44. In Corporate Hedging, which one of the following types of risks can be covered ? (A) Liquidity risk (B) Currency risk (C) Credit risk (D) Transaction risk (E) None of these Ans : (B) 45. Bank of Rajasthan is now merged with which of the following banks ? (A) AXIS Bank (B) IDBI Bank (C) ICICI Bank (D) HDFC Bank (E) None of these Ans : (C) 46. As per GDP figures on calendar year basis, according to World Bank, which one of the following economies will have highest GDP growth in the year 2011 ? (A) US (B) China (C) Japan (D) India (E) Brazil Ans : (B) 47. In respect of infrastructure bonds issued under provisions of Section 80 CCF of the Income Tax Act, what is the maximum amount (Rs. in thousands), upto which these bonds can be covered ? (A) 30 (B) 20 (C) 40 (D) 50 (E) None of these Ans : (E) 48. Which of the following is the full form of the abbreviation IFRS as used in corporate / finance sector ? (A) Indian Financial Reconciliation Standards (B) Interpretation and Formal Reporting System (C) International Financial Reporting Standards (D) International Financial Reporting System (E) None of these Ans : (C)

49. As per the new guidelines issued by SEBI, companies are required to list shares within how many days of the closure of the Initial Public Offers (IPOs) ? (A) 60 days (B) 12 days (C) 30 days (D) 45 days (E) None of these Ans : (D) 50. RTGS stands for . (A) Real Time Gross Settlements (B) Reduced Time Gross Settlements (C) Relative Time Gross Settlements (D) Real Total Gross Securities (E) None of these Ans : (A)

Common Glossary Related to Budget

Union Budget
Under Article 112 of the constitution, a statement of estimated receipts and expenditure, called the Annual Financial Statement, has to be placed before Parliament for each financial year. This Statement is the main budget document. It is an estimate of the Governments revenue and expenditure at the end of a fiscal year, which runs from April 1 to March 31. A Union Budget is the most comprehensive report of the Governments finances, in which revenues from all sources and outlays to all activities are consolidated. The budget also contains estimates of the Governments accounts for the next fiscal, called budgeted estimates.

Capital Budget
The capital budget consists of capital receipts and payments. Capital receipts are Government loans raised from the public, Government borrowings from the Reserve

Bank and treasury bills, divestment of equity holding in public sector enterprises, loans received from foreign Governments and bodies, securities against small savings, State provident funds, and special deposits. Capital payments refer to capital expenditures on construction of capital projects and acquisition of assets like land, buildings machinery and equipment. It also includes investments in shares, and loans and advances granted by the Central Government to State Governments, Government companies, corporations and other parties.

Revenue Budget
The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments etc. Revenue expenditure is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides. It also includes interest on its borrowings, subsidies and grants given to State Governments and other parties. This expenditure does not result in the creation of assets. In case the difference between revenue receipts and revenue expenditure is negative, there is a revenue deficit. It shows the shortfall of the Governments current receipts over current expenditure. If the capital expenditure and capital receipts are taken into account too, there will be a gap between the receipts and expenditure in a year. This gap constitutes the overall budgetary deficit, and it is covered by issuing 91-day Treasury Bills, mostly held by the Reserve Bank. Revenue surplus is the excess of revenue receipts over revenue expenditure.

Fiscal Deficit
This is the gap between the Governments total spending and the sum of its revenue

receipts and non-debt capital receipts. It represents the total amount of borrowed funds required by the Government to completely meet its expenditure. The gap is bridged through additional borrowing from the Reserve Bank of India, issuing Government securities etc. Fiscal deficit is one of the major contributors to inflation.

Primary Deficit
The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Governments borrowings are going towards meeting expenses other than interest payments.

Finance Bill
The Government proposals for the levy of new taxes, alterations in the present tax structure, or continuance of the current tax structure are placed before the Parliament in this bill. The bill contains amendments proposed to direct and indirect taxes.

Direct and Indirect Taxes

Direct taxes are levied on the incomes of individuals and corporates. For example, income tax, corporate tax etc. Indirect taxes are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

Some Other Terms

Central plan outlay : It refers to the allocation of monetary resources among the different sectors in the economy and the ministries of the Government. Public account : The Government acts like a banker for transactions relating to provident funds, small savings collection etc. The funds that the Government thus receives from its bank like operations are kept in the public account, from which the related disbursements are made. These funds do not belong to the Government and have to be paid back to the persons and authorities who have deposited them. Ad-valorem duties : These are the duties determined as a certain percentage of the price of products. Balance of payments : Balance of payments is the difference between the demand for,

and supply of, a countrys currency on the foreign exchange market. Budget estimates : It is an estimate of fiscal and revenue deficits for the year. The term is associated with the estimates of the Centres spending during the financial year and the income received through taxes. Capital receipt : Loans raised by the Centre from the market. Government borrowings from the Reserve Bank and other parties, sale of Treasury Bills, and loans received from foreign governments form a part of capital receipt. Other items that also fall under this category include recovery of loans granted by the Centre to State Governments and proceeds from disinvestments of Government stake in public sector undertakings. Consolidated fund : Under this, the Government pools all its funds together. It includes all Government revenues, loans raised, and recoveries of loans granted. All expenditure of the Government is incurred from the consolidated fund and no amount can be withdrawn from the fund without authorisation of the Parliament. Contingency fund : This is a fund used for meeting emergencies where the Government cannot wait for an authorisation of the Parliament. The Government subsequently obtains Parliamentary approval for the expenditure. The amount spent from the contingency fund is returned to the fund later. Monetary policy : This comprises actions taken by the central bank to regulate the level of money or liquidity in the economy, or change the interest rates.

Economic Glossary
Active Market
This is a term used by stock exchange which specifies the particular stock or share which deals in frequent and regular transactions. It helps the buyers to obtain reasonably large amounts at any time.

Administered Price

The administrative body e.g., the government a marketing board or a trading group determines this price. The competitive market force are not entitled to determine this price. The government fixes a price in accordance with demand supply portion in the market.

Ad-valorem Tax
Ad-valorem tax is a kind of indirect tax in which goods are taxed by their values. In the case of ad-volorem tax, the tax amount is calculated as the proportion of the price of the goods. Value added Tax (VAT) is an ad-volorem Tax.

Advanced Countries
Advanced countries are countries which are industrially advanced, having high national and per capita income and ensure high rate of capital formation. These countries possess highly developed infrastructure and apply most updated and advanced technical know-how in their productive activities. A strong and well organised financial structure is found in these advanced countries.

Amalgamation
It means merger. As and when necessity arises two or more companies are merged into a large organisation. This merger takes place in order to effect economies, reduce competition and capture market. The old firms completely lose their identity when the merger takes place.

Appreciation
Appreciation means an increase in the value of something e.g., stock of raw materials or manufactured goods. It also includes an increase in the traded value of a currency. It is the antonym of Depreciation. When the prices rise due to inflation, appreciation may occur. It causes scarcity or increase in earning power.

Arbitrage
When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets.

Arbitration
Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees.

Auction
When a commodity is sold by auction, the bids are made by the buyers. Whose ever

makes the highest bid, gets the commodity which is being sold. The buyers make the bid taking into consideration the quality and quantity of the commodity.

Autarchy
If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries.

Automation
Automation means the use of machinery & technology to replace the labours work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation.

Balanced Budget
When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget.

Balance of Payment
Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.

Balance of Trade
Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.

Balance Sheet
Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.

Bank
Bank is a financial institution. It accepts funds on current and deposit accounts. It also lends money. The bank pays the cheques drawn by customers against current and deposits accounts. The bank is a trader that deals in money and credit.

Bank Draft
Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque.

Bank Rate
Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.

Bilateralism
It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others.

Birth Rate
Birth Rate (or Crude Birth Rate) is number of the births per thousand of the population during a period, usually a year. Only live births are included in the calculation of birth rate.

Black Money
It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.

Blue Chip
It is concerned with such equity shares whose purchase is extremely safe. It is a safe investment. It does not involve any risk.

Blue Collar Jobs

These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.

Brain-Drain
It means the drift of intellectuals of a country to another country. Scientists, doctors and technology experts generally go to other prominent countries of the world to better their lot and earn huge sums of money. This Brain-Drain deprives a country of its genius and capabilities.

Bridge Loan

A loan made by a bank for a short period to make up for a temporary shortage of cash. On the part of borrower, mostly the companies for example, a business organization wants to install a new company with new equipments etc. while his present installed company / equipments etc. are not yet disposed off. Bridge loan covers this period between the buying the new and disposing of the old one.

Budget
It is a document containing a preliminary approved plan of public revenue and public expenditure. It is a statement of the estimated receipt and expenses during a fixed period, it is a comparative table giving the accounts of the receipts to be realized and of the expenses to be incurred.

Budget Deficit
Budget may take a shape of deficit when the public revenue falls short to public expenditure. Budget deficit is the difference between the estimated public expenditure and public revenue. The government meets this deficit by way of printing new currency or by borrowing.

Bull
Bull is that type of speculator who gains with the rise in prices of shares and stocks. He buys share or commodities in anticipation of rising prices and sells them later at a profit.

Bull Market
It is a market where the speculators buy shares or commodities in anticipation of rising prices. This market enables the speculators to resale such shares and make a profit.

Buoyancy
When the government fails to check inflation, it raises income tax and the corporate tax. Such a tax is called Buoyancy. It concerns with the revenue from taxation in the period of inflation.

Business Cycle
Business cycle (also known as trade cycle) are species of fluctuations in the economic activity of organised communities. It is composed of period of good trade characterised by rising prices and low unemployment, alternating with period of bad trade characterised by falling prices and high unemployment. Every trade cycle have five different subphasesdepression, recovery, full employment, prosperity (boom) and recession.

Call Money
Call money is in the form of loans and advances which are payable on demand or within the number of days specified for the purpose.

Capital Budgeting

Capital budgeting represents the process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects. In other words, it is the process of budgeting capital expenditure by means of an annual or longer period capital budget.

Capital-labour Ratio
Latest models of machinery and equipment raise the labour efficiency and the output is maximized. Capitallabour ratio is the amount of capital against the given labours that a firm employs. Capital-labour ratio is the ratio of capital to labour.

Capital Market
Capital market is the market which gives medium term and long term loans. It is different from money market which deals only in short term loans.

Capitalism
Capitalism is an economic system in which all means of production are owned by private individuals Selfprofit motive is the guiding feature for all the economic activates under capitalism. Under pure capitalism system economic conditions are regulated solely by free market forces. This system is based on Laissez-faire system i.e., no state intervention. Sovereignty of consumer prevails in this system. Consumer behaves like a king under capitalism.

Cash Reserve Ratio (CRR)

The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR. It influences the commercial banks volume of credit because variation in CRR affects the liquidity position of the banks and hence their ability to lend.

Census
Census gives us estimates of population. Census is of great economic importance for the country. It tells us the rate at which the total population is increasing among different age groups. In India census is done after every 10 years. The latest census in India has been done in 2001.

Central Bank
Central Bank may be defined as the apex barking and monetary institution whose main function is to control, regulate and stabilize the banking and the monetary system of the country in the national interest.

Cheque
Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money.

Clearing Bank
Clearing bank is one which settles the debits and credits of the commercial banks. Even of the cash balances are lesser, clearing bank facilitates banking operation of the commercial bank.

Clearing House
Clearing house is an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation.

Closed Economy
Closed economy refers to the economy having no foreign trade (i.e., export and import). Such economies depend exclusively on their own internal domestic resources and have no dependence on outside world.

Collusion
Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion.

Coinage
Art and practice of making coins is called coinage. The metal is melted and moulded to shape into a coin. The coinage is a medium of exchange (money).

Collectivism
Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection.

Commercial Bank
Commercial Bank is an institution of finance. It deals with the banking services through its branches in whole of the country. Operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank.

Communism
Communism is a political and economic system in which the state makes the major economic decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system.

Core Sector
Economy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries.

Corporation Tax
It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for.

Cost-push Inflation
It arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.

Credit Rationing
Credit rationing takes place when the banks discriminates between the borrowers. Credit rationing empowers the bank to lend to some and to refuse to lend to others. In this way credit rationing restricts lending on the part of bank.

Credit Squeeze
Monetary authorities restrict credit as and when required. This credit restriction is called credit squeeze. Monetary authorities adopt the policy of credit squeeze to control inflationary pressure in the economy.

Custom Duty
Custom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.

Cyclical Unemployment
It is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business cycle turns up again.

Dear Money
Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.

Death Duty
It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former.

Death Rate
Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death

rate. A country having high life expectancy will have a high crude death rate.

Decentralisation
Decentralisation means the establishment of various unit of the same industry at different places. Large scale organisation or industry can not be run at one particular place or territory. In order to increase the efficiency of the industry, various units at different places are located.

Debt Service (Total)

The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF.

Deficit Financing
It is a practice resorted to by modern government of spending more money than it receives in revenue. It is a policy of bridging a deficit between governments expenditure and revenue. Deliberately budgeting for a deficit is called deficit financing. This practice was popularised by Prof. J. M. Keynes to deal with the depression and unemployment situations and to stimulate economic activity. Deficit financing, though having inflationary effects, has now become a common practice in all countries.

Deflation
Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the general price level falls and the value of money rises.

Devaluation
The loss of value of currency of a country relative to other foreign currency is known as devaluation. Devaluation is a process in which the government deliberately cheapens the exchange value of its own currency in terms of other currency by giving it a lower exchange value. Devaluation is used for improving, the balance of payment situation in the country.

Direct Tax
A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax.

Disinflation
It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-

inflationary measure.

Dissaving
Dissaving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality.

Dividend
Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors.

Economic Integration
Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration.

Engel's Law
This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa.

Estate Duty
It is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature.

Excise Duty
It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature.

Face Value
It refers to that normal value of coin at which the coin circulates and is accepted in the discharge of debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value.

Fascism
It is a form of political system. In it every economic consideration rests on one criterionthe increase in the people's standard of living. It also lays emphasis on military strength and prestige of the country. It is the extreme nationalism and the ultimate goal is self-sufficiency.

Federal Economy
It refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the centre and the states are independent in the exercise of this authority.

Fiduciary Issue
Generally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation.

Fertility Rate
The term fertility refers to the actual bearing of children or occurrence of births. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy.

Fiscal Policy
Fiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole.

GEM
GEM (Gender Empowerment Measure) is a composite index measuring gender inequality in three basic dimensions of empowermenteconomic participation and decision making, political participation and decision making, and power over economic resources.

GDI
GDI (Gender Related Development Index) is a composite index measuring average achievement in the three basic dimensions captured in the human development indexa long and healthy life, knowledge and a decent standard of livingadjusted to account for inequalities between men and women.

Gini-coefficient
It represents the measurement of inequality derived from the Lorenz Curve, with every increase in the degree of inequality, the curvature of the Lorenz Curve also increases and line becomes larger.the area between the curve and 45 The Gini-coefficient is measured as G =Area between Lorenz Curve & LineLine/Area above the 4545

Giffin Goods
Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward from left to right. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours.

Gresham's Law
Bad money (if not limited in quantity) drives good money out of circulationThis statement was given by Sir Thomas Gresham, the economic Adviser of Queen Elizabeth. This law states that people always want to hoard good money and spend bad money when two forms of money are in circulation at the same time.

Gross Domestic Product (GDP)

It is the money value of all final goods and services produced within the geographical boundaries of the country during a given period of time (usually a year). GDP can be calculated both at current prices and at constant prices. If we add net factor income from abroad to the GDP, we get Gross National Product (GNP).

Gross National Product (GNP)

It refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

Gross National Product Deflator

It is a Price Index Number used to correct the money value of Gross National Product (GNP) for price changes so as to isolate the changes which have taken place in the physical output of goods and services.

Guild Socialism
This form of socialism accepts the leadership of artisans. The operation of the whole economy specially the management and control of industries lies in the hands of artisans Socialism established by artisans is termed a Guild Socialism.

HDI
HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human lifea long and healthy life, knowledge and a decent standard of living.

Import Duty
Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.

Indirect Tax
Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and

intention that he shall indemnify himself at the expense to another.

Inflation
A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising.

Joint Demand
Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other.

Joint Sector
When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector.

Labour Union
Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting collective bargaining measures with the management of the industry in particular.

Laffer Curve
This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rates.

Laissez Faire
It is a French word meaning non-interference. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals.

Life Expectancy at Birth

The number of years a newborn infant would live if prevailing pattern of age specific mortality rates at the time of birth were to stay the same throughout the childs life.

Liquidation
It refers to the termination (or winding up) of a registered company. Liquidation takes place because of company's insolvency. In liquidation, assets are turned into cash for settling outstanding debts and for apportioning the balance, if any, amongst the owners.

Liquidity
Assets which can easily be converted into cash money are said to have liquidity. Land does not possess liquidity at it takes longer time to get converted into cash.

Liquidity Ratio
The commercial banks under banking regulations have to maintain a certain specified proportion of their total deposits of various categories in liquid assets. This maintainable proportion is called liquidity ratio.

Lock-out
Lock-out refers to such a situation when the management does not permit the workers to work unless they agree to accept the employer's term. Lock-out is the closing of work by the management for an uncertain period of time to put pressure on the labour union. It is an action by the employer equivalent to a strike by employees.

Lorentz Curve
This curve shows the degree of inequalities of a frequency distribution in a graphical manner. It is a curve on a graph which shows the cumulative proportion of a statistical population against this cumulative share of some characteristic. This curve is commonly used to depict income distribution showing the cumulative percentage of people from the poorest up and their cumulative share of national income.

Lump Sum Tax

Lump sum tax is a fixed amount which has imperative nature irrespective of the income level. This tax is not equitable in nature.

Merit Goods
Merit goods refer those goods that are very essential to the society as a whole and hence the government ensures their availability to all consumers, regardless of their ability to pay to reasonable price.

Mixed Economy
It refers to that economic system in which both private and public sector co-exists. Indian economy is an example of a mixed economy.

Monetary Policy
Monetary policy comprises all measures applied by the monetary authorities with a view to produce a deliberate impact on the nature and volume of money so as to achieve the objectives of general economic policy. It aims at regulating the flow of currency, credit and other money substitutes in an economy with a view to affect the total stock of such assets as well as to influence the demand of the community for such assets.

Monetary Reforms
When a new currency is introduced in a country due to hyperinflation or due to a deliberate policy measure (such as decimalization) it is termed as monetary reform.

Monopoly

Monopoly refers to that market structure where there is only one seller in the market who controls the entire market supply and no substitute of the product is available in the market.

Monopsony
Monopsony is that market situation in which there is only one single buyer of the product in the market. In other word, buyer's monopoly is termed as monopsony.

Multinational Company
It is a large scale company which has its production base in several countries and the bulk of the production is produced in outside nations. This company produces more overseas than they do in its parent country. Increased trade and economies of scale have encouraged such type of companies in the recent years.

National Income
In the simplest way it can be defined as factor income accruing to the national residents of a country. It is the sum of domestic factor income and net factor income earned from abroad. Net national product at factor cost is called national income.

Net National Product (NNP)

When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP).

Oligopoly
Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production.

Open Economy
Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy.

Okuns Law
Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 25% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okuns Law.

Perfect Competition
Perfect competition is the market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence market price.

Poverty Line
Poverty line is a virtual line demarcating persons living below and above it. In India all those persons are treated living below poverty line who are not able to earn that much of income which is not sufficient to acquire food equivalent to 2100 calories per person per day in urban areas and 2400 calories per person per day in rural areas. As per UNDP, one US dollar (1993 PPP US $) per person per day is treated as poverty line.

PQLI
PQLI is known as Physical Quality of Life Index which is used to assess the level of social development. This index was developed by Jim Grant for The Overseas Development Council PQLI is calculated by using indices of (i) Adult literacy rate, (ii) IMR, (iii) Life Expectancy.

Price Mechanism
Price mechanism signifies the working of those market forces which establishes equilibrium in the economy. Laissez faire policy is the basis for the working of price mechanism.

Price Ring
It is an unofficial syndicate by which the prices are controlled with the prior understanding among the traders. These dealers under a price ring decide not to overbid one another at the public auction to keep the prices low. This price ring may discourage outsiders from coming to the auctions.

Private Sector
Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector.

Privatisation
Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation.

Public Debt
Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt.

Public Goods
Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods.

Public Sector
Public sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur.

Peril Point
It indicates that point beyond which tariff reductions would threaten the existence of domestic industry.

Quick Asset
Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash.

Quoted Company
That company is called quoted company whose share prices are quoted on a stock exchange.

Reflation
It signifies general increase in the level of business activity in the economy. Reflation generally involves greater government expenditure and the easing of credit to encourage increased production.

Regressive Tax
It is a tax in which rate of taxation falls with an increase in income. In regressive taxation incidence falls more on people having lower incomes than that of those having higher incomes.

Repressed Inflation
It is a state in which aggregate demand is greater than the total supply of goods and services in an economy, but prices are prevented from rising to eliminate excess demand. The holding down of price is sometimes done by government as a means of suppressing inflation.

Reserve Asset Ratio

It is the ratio of a banks reserve assets to its eligible liabilities.

Revolving Credit
It is a bank credit that is renewed automatically until notice of cancellation is received. Revolving credits may be sanctioned for an unlimited amount in total but with a limit on the amount that may be drawn at any one time or within a specified period, e.g., one month.

Seasonal Unemployment

It is that unemployment which is caused by seasonal variation in demand for labour by various industries, such as agriculture, construction and tourism. Seasonal unemployment normally declines in spring as more outdoor work can be undertaken.

Security
Security refers to a share, bond or government stock that can be bought and sold, usually on the stock exchange or on a secondary market, and carries a right to some form of income, either in the form of a fixed rate of interest or dividends.

Shadow Price
It is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare.

Share Capital
It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value of the issued shares.

Single Tax System

It is a system in which all tax revenues are raised from one form of taxation.

Socialism
The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer cooperatives.

Social Security
Provision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security.

Soft Currency
A currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling.

Special Drawing Rights (SDRs)

It is a reserve asset (known as Paper Gold) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now

forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies.

Special Tax (Unit Tax)

It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem.

Stabilization Policy
It is Government economic policy announced at reducing the cyclical and other fluctuations that take place in a market economy.

Stagflation
It is a state of the economy in which economic activity is slowing down, but wages and prices continue to rise. The term is a blend of the words stagnation and inflation.

Surplus Value
It is the difference between the amount paid to a factor and the revenue earned by selling the output it produced.

Tariff
It is a tax or a duty on imports, which can be levied either on physical units, e.g., per tonne (specific), or on value (ad-valorem). Tariffs may be imposed for a variety of reasons including; to raise government revenue, to protect domestic industry from subsidized or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments.

Trade Gap
It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.

Trade Union
It is an organisation of employees who join together to further their interests. Trade Unions negotiate on behalf of their members in collective bargaining with employers, and in the event of a dispute may put pressure on employers by withdrawing labour (i.e. strike) or by some less drastic form of action (i.e. go-slow, working to rule).

Transfer Payment
It is a payment made by public authority other than one made in exchange for goods or services produced. Transfer payments are not the part of National Income. Examples includes unemployment benefit and child benefits.

Vital Statistics
Vital statistics refers to those data which are associated with vital events of masses like birth, death, marriage divorce etc.

VAT (Value Added Tax)

VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation. In other words, the tax already paid can be claimed at the next stage of value addition.

Wealth Tax
Wealth tax is that tax which is imposed on the value of total assets but the wealth upto a certain limit is exempted from such tax.

Welfare State
It refers to a nation that provides to all at least the minimum standards in respect of education, health, housing, pensions and other social benefits.

Wholesale Price Index

Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.