Gurgaon Gramin Bank Officers Exam Solved Paper 2012

Gurgaon Gramin Bank Officers Exam., 2012

(Held on 15-4-2012)

Financial Awareness : Solved Paper
1. What does the term Short selling refer to ?
(A) Contract with a broker for sale of shares in a rising market
(B) Hoarding commodities to create artificial shortage and reduce sales
(C) Selling shares through a broker without actually holding shares generally either in a falling market and/or to induce a bear phase
(D) Selling shares through a broker in a 'Bear' phase of the market
(E) None of these
Ans : (C)

2. What does the term Depreciation mean as used in finance/banking operations ?
(A) Closure of a Plant due to lock out
(B) Reduction in the value/loss of equipment/plant over a time due to wear and tear
(C) Loss incurred during a year due to plant breakdown
(D) Unusually high repair expenses incurred on the plant during the year
(E) None of these
Ans : (B)

3. Inflation has become a major area of concern in India these days. What measure does the Govt. of India/RBI normally take to control the same ?
1. Fixation of maximum price of the commodities
2. System of Dual prices.
3. Increase in supply of food grains.
4. Control on credit and liquidity in market.
(A) Only 1 (B) Only 2
(C) Only 3 (D) Only 2, 3, and 4
(E) All of these
Ans : (D)

4. The present band approved by Reserve Bank of India between REPO and reverse REPO is–
(A) 0.5% (B) 1%
(C) 1.5% (D) 0.75%
(E) None of these
Ans : (B)

5. Which of the following is the Regulator of the credit rating agencies in India ?
Ans : (D)

6. Which of the following was the industrial group whose small car plant was shifted to Gujarat due to political expediency ?
(A) General Motors (B) Hyundai Motors
(C) Maruti (D) Mahindra and Mahindra
(E) Tata Motors
Ans : (E)

7. Which of the following cannot be called an organized sector in India ?
(A) Nationalised Banks (B) Regional Rural Banks
(C) Cooperative Banks (D) Chits and Money Lenders
(E) State Co-operative Banks
Ans : (D)

8. What is the full form of the term IRAC ? (as used in financial sector)
(A) Internal Review and Accounting Corpus
(B) Income Recognition and Asset Classification
(C) Industrial Restructuring and Accounting Codes
(D) Investment Rating and Asset Classification
(E) India Revenue and Accounting Codes
Ans : (B)

9. Which of the following is the indicative RBI rate that is followed in recent years by banks to arrive at their individual interest rates ?
(A) Bank Rate (B) Base Rate
(C) Bond Rate (D) Prime Lending Rate
(E) None of these
Ans : (D)

10. The first set of Fourteen Nationalized Banks were nationalized in the year–
(A) 1947 (B) 1955
(C) 1969 (D) 1973
(E) 1981
Ans : (C)

11. In India which one among the following formulates the fiscal policy?
(A) Parliament (B) Planning Commission
(C) Finance Commission (D) Ministry of Finance
(E) Prime Minister's Office
Ans : (D)

12. Which of the following is the Authority for regulation of the Insurance Sector in India ?
Ans : (E)

13. Which of the following is the largest Bank in the Private sector category in India in terms of number of branches/volume of business ?
(A) AXIS Bank (B) HDFC Bank
(C) ICICI Bank (D) Kotak Mahindra
(E) None of these
Ans : (C)

14. Consumer loans are repaid by borrowers out of–
(A) Other income of the borrower
(B) Income generated by the financed goods
(C) Sale of goods financed
(D) Return of the goods financed
(E) None of these
Ans : (A)

15. The term 'Power of Attorney' refers to–
(A) Power of a person
(B) An authority to operate a Bank Account
(C) An instrument by which a person is empowered to act for another person
(D) All of these
(E) None of these
Ans : (C)

16. Term LIBOR is related with which of the following ?
(A) Stock market prices (B) Commodity prices
(C) Sensitive Advances (D) Interest rates
(E) None of these
Ans : (D)

17. What percentage of net bank credit do Foreign Banks have to lend as Priority Sector advances as per target fixed by RBI ?
(A) 40% (B) 45%
(C) 30% (D) 35%
(E) None of these
Ans : (A)

18. Which of the following are the depositories in India handling dematerialized shares ?
1. National Securities Depository Ltd. (NSDL)
2. Bombay Stock Exchange (BSE)
3. Central Depository Services Ltd. (CDSL)
(A) Only 1 and 3 (B) Only 2
(C) Only 3 (D) Only 1 and 2
(E) All of these
Ans : (A)

19. The CRR is maintained in the form of–
(A) Cash balances with RBI
(B) Cash balances with banks
(C) Cash balances with branches of banks
(D) Cash balances with banks and RBI both
(E) Cash balances with IMF
Ans : (A)

20. When RBI lowers credit creation capacity of the system, i.e., increase in CRR/SLR, it is said to be following a–
(A) Tight money policy (B) Easy money policy
(C) Open money policy (D) Closed money policy
(E) None of these
Ans : (A)

21. If a farmer avails a loan against pledge of gold ornaments for his agricultural needs, the loan in this case would be which of the following ?
(A) Classified as Gold Loan (B) Consumption loan
(C) Granted as agricultural loan (D) Treated as personal loan
(E) None of these
Ans : (A)

22. What does the term 'Kite Flying' mean?
(A) Doing unauthorized business
(B) Allowing indiscriminate withdrawals to borrowers
(C) Permitting withdrawals against uncleared effects, i.e., cheque sent in clearing or to be sent for clearing
(D) Opening of letters of credit and discounting such LCs for accommodation
(E) Sanctioning large advance limits without proper assessment
Ans : (C)

23. What is the full from of BIFR ?
(A) Bureau for Industrial and Financial Rehabilitation
(B) Board for Institutional Finance and Rehabilitation
(C) Board for Investigation and Formal Reconstruction
(D) Board for Industrial and Financial Reconstruction
(E) None of these
Ans : (D)

24. Which are the two critical variables that generally go into monetary planning by RBI ?
(A) Demand and interest rates (B) Growth and Inflation
(C) Price and supply (D) Growth and interest rates
(E) Movement in money market
Ans : (B)

25. Who among the following cannot issue Commercial Paper ?
(A) Fls (B) Companies
(C) Primary Dealers (D) Banks
(E) All of these
Ans : (C)


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