1. According to Reserve Bank of India's latest study, which one of the following states ranks as the best performing state in most of the key fiscal parameters?

A. Gujarat B. Kerala C. Chhattisgarh D. Odisha E. None of these

2. The Reserve Bank of India has power to print currency notes of up to Rs ____?

A. 1,000 B. 5,000 C. 10,000 D. 15,000 E. None of these

3. The RBI has recently decided to withdraw from circulation of currency notes that had been issued before___?

A. 2004 B. 2006 C. 2005 D. 2008 E. None of these

4. India on 2 January 2014 has signed a credit agreement of 160 million dollar with World Bank for the modernization of

A. Uttar Pradesh Road Sector B. Rajasthan Road Sector C. Bihar Road Sector D. West Bengal Road Sector E. None of these

5. Which institution has been recognized by RBI recently to act as local operating unit for issuing globally compatible legal entity identifiers (LEI) in India?

A. FICCI B. India Inc C. Clearing Corporation of India Ltd. D. Financial Stability Board E. None of these

6. A panel of Reserve Bank of India has suggested to set-up specialized banks to cater to the low income households and small businesses. These banks will ensure that every citizen have a bank account by 2016. The panel was headed by

A. Mukul Mudgal B. Nachiket Mor C. Raghuram Rajan D. Bilal Nazaki E. None of these

7. Who has been appointed as the Managing Director and Chief Executive Officer of General India Life Insurance?

A. Arvind Mayaram B. Santosh Hegde C. JS Mathur D. Munish Sharda E. None of these

8. The Bank of Japan (BOJ) and the Reserve Bank of India (RBI) recently agreed to expand the amount of the Bilateral Swap Agreement (BSA) to

A. 15 billion dollars B. 35 billion dollars C. 50 billion dollars D. 75 billion dollars E. None of these

9. Who is the Governor of the Bank of Japan?

A. Matsukata Masayoshi B. Haruhiko Kurodo C. Toyotaro Yuki D. Masaaki Shirakawa E. None of these

10. National Bank for Agriculture and Rural Development (NABARD) recently reduced the refinance rates for the banks and other lending agencies by 0.20 percent. The NABARD was established on the recommendation of which committee?

A. Narendran Commission B. Mukherjee Commission C. Justice Shah Commission D. B Sivaraman Committee E. None of these

Answers
1. Answer - Option C
2. Answer - Option C
3. Answer - Option C
4. Answer - Option B
5. Answer - Option C
6. Answer - Option B
7. Answer - Option D
8. Answer - Option C
9. Answer - Option B
10. Answer - Option D

1. Reserve Bank of India (RBI) on 15 January 2014 included two countries in the sensitive list under FEMA Act, 2000. The countries in question are

A. Iran and China B. Hong Kong and Macau C. Syria and Sudan D. Israel and Libya E. None of these

2. Reserve Bank of India on 20 January 2014 constituted an Expert Committee to Review Governance of Bank Boards in India. The expert committee will be chaired by?

A. Urjit R. Patel B. HR Khan C. KC Chakrabarty D. PJ Nayak E. None of these

3. Recently, an Expert Panel on Monetary Framework set up by the RBI recommended to strengthen and revise the current monetary policy framework. The Expert Panel was headed by?

A. Raghuram G Rajan B. Peter J. Montiel C. Rupa Nitsure D. Urjit Patel E. None of these

4. Recently RBI issued new guidelines on loan restructuring of Non-banking Financial Companies (NBFCs). The guidelines were based on the recommendation of which Committee?

A. Nachiket Mor Committee B. Urijit Patel Committee C. Bimal Jalan Committee D. B Mahapatra Committee E. None of these

5. In international banking system, what does the TIBOR stands for ___?

A. Tokyo Interbank Offered Rate B. Taiwan Interbank Offered Rate C. Thailand Interbank Offered Rate D. Tongling Interbank Offered Rate E. None of these

6. Which one of the following committees was set up by RBI to study the various issues relating to financial benchmarks?

A. Umesh Chandra B. Vijaya Bhaskar C. Urjit Patel D. Subbu Rao E.None of these

7. Who among the following has been appointed new chairman of NABARD?

A. Harsh Kumar Bhanwala B. Chandra Shekar C. Hemanth Banswal D. Amith Mishra E. None of these

8. Which of the following foreign banks has been granted license to start its banking operation in India, recently?

A. Doha Bank B. Bank of Japan C. Barclays Bank D. Kookmin Bank E. None of these

9. Consider the following banks: 1. ABN Amro Bank 2. Barclays Bank 3. Kookmin Bank Which of the following correctly represents their countries of origin?

A. Dutch, USA, Japan B. Japan, USA, China C. Dutch, UK, South Korea D. Dutch, USA, China E. None of these

10. Who is the chairperson of State Bank Of India?

A. Arundhati Bhattacharya B. Naina Lal Kidwai C. Chanda Kochar D. Shikha Sharma E. None of these

Answers
1. Answer - Option B
2. Answer - Option D
3. Answer - Option D
4. Answer - Option D
5. Answer - Option A
6. Answer - Option B
7. Answer - Option A
8. Answer - Option A
9. Answer - Option C
10. Answer - Option A

1. The World Bank has set a new goal of reducing extreme poverty to:

A. 9 percent by 2020 B. 6 percent by 2015 C. 3 percent by 2025 D. 0 percent by 2015 E. None of these

2. Consider the following statements in regard to inclusive development : (1) As per the RBI guidelines Public Sector Banks has to give loans to women SHGs at the interest rate of 7% (2) The initiative is to get benefit of interest rate subvention scheme under the Damini scheme Which of the statements given above is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

3. Consider the following statements regarding medium term note (MTN) programme : (1) Medium term note (MTN) is a debt bond which usually matures in 5 to 10 years (2) Recently Union Bank of India has hit the global debt market to raise around USD 500 million through bond issuance Which of the statements given above is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

4. Consider the following statements : (1) Instant Money Transfer (IMT scheme is launched by Bank of India (2) It allows withdrawal of funds to individuals from its ATMs without an account in the bank Which of the statements given above is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

5. Consider the following statements: 1. The RBI has announced the 'Depositor Education and Awareness Fund Scheme, 2014'. 2. The Depositor Education and Awareness Fund Scheme will utilize unclaimed bank deposits for education and awareness of depositor. 3. The scheme will be funded by centre for depositor's education. Which among the above is/ are correct statements?

A. 1, 2 & 3 B. 2 & 3 C. Only 1, & 2 D. one of the above E. None of these

6. Consider the following statements : (1) Umesh Chandra committee was set up by RBI to study the various issues relating to financial benchmarks. (2) The committee has recommended change in determining money market benchmark. Which of the statements given above is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

7. Which among the following finance companies has received RBI approvals to set up a minimum of 9,000 white label ATMs (WLAs) in the next three years in rural India?

A. CMS Finvest Ltd. B. SREI Infrastructure Finance Ltd. C. Reliance Capital Ltd. D. Tokyo Finance Ltd. E. None of these

8. Which of the following is the largest bank in the world in terms of market capitalization?

A. China Construction Bank B. Industrial & Commercial Bank of China C. Wells Fargo & Co D. Bank of America E. None of these

9. Recently, RBI has proposed setting up of a trade Receivables and credit exchange (TCE) for financing ____?

A. Regional Rural Banks B. Micro, Small and Medium Enterprises C. Public Sector Banks D. Non Banking Financial Corporations E. None of these

10. Which among the following is the largest foreign bank operating in India in terms of asset base?

A. Stanchart B. HSBC C. Citibank D. DBS E. None of these

Answers
1. Answer - Option A
2. Answer - Option A
3. Answer - Option C
4. Answer - Option C
5. Answer - Option C
6. Answer - Option B
7. Answer - Option B
8. Answer - Option B
9. Answer - Option B
10. Answer - Option C

1. Consider the following statements: 1. The Reserve Bank of India (RBI) on 2 April 2014 granted in-principle approvals to IDFC Ltd and Bandhan Financial Services Pvt. Ltd to start new banks in India. 2. These approvals have been granted under the guidelines on licensing of new banks in the public sector. 3. The two have been granted the permission to set-up banks from a field of 25 aspirants. Which of the statements given above is/are correct?

A. 1 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3 E. None of these

2. The Reserve Bank of India on 1 April 2014 adopted the Consumer Price Index (CPI) as the key measure of Inflation. It was adopted in the first bi-monthly monetary policy statement for 2014-15. It was adopted on the basis of recommendations of which Committee report?

A. Urjit R Patel Committee B. A Ghosh Committee C. C Rao Committee D. Bhagwati Committee E. None of these

3. Consider the following statements: 1. Asian Development Outlook 2014 was released on 1 April 2014 by the Asian Development Bank. 2. According to the ADB Outlook 2014, developing Asia is expected to extend its steady growth from 6.1 percent in 2013 to 6.2 percent in 2014 and 6.4 percent in 2015. Which of the statements given above is/are correct?

A. 1 only B. 1 and 2 C. 2 only D. None of the above E. None of these

4. President Pranab Mukherjee on 30 March 2014 cleared the re-promulgation of the SEBI Ordinance Securities Laws (Amendment) Bill 2013. The ordinance aims to give powers to 1. Securities and Exchanges Board of India (SEBI) to act against Ponzi scheme. 2. The move was to arm the regulator with more stringent powers comes in the wake to curb the illegal involvement of chit fund companies. 3. Parliament passed the Securities Laws (Amendment) Bill 2013 in the Winter session. Consider the above statements and choose the correct

A. 1 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3 E. None of these

5. The Reserve Bank of India (RBI) extended the timeline for full implementation of the Basel III capital regulations by a year. Now the banks are required to comply with the Basel III norms by 31 March 2019 instead of

A. 31 March 2016 B. 31 March 2018 C. 31 March 2017 D. 31 March 2015 E. None of these

6. The Purchasing Managers' Index (PMI) is a venture of ___?

A. HDFC B. HSBC C. ICICI D. EXIM Bank of India E. None of these

7. Factors responsible for the widespread popularity of consumer finance in recent years: Providing access to purchasing power to the middle class consumer has been the most significant achievement of this product class. A complainant not satisfied with the decision of the Banking Ombudsman, has the right to appeal to the _______.

A. Governor SBP B. AVP of the concerned bank C. High Court D. Supreme Court E.None of these

8. Which of the following constitutes a significant portion of banks' lending portfolios?

A. Credit finance B. Foreign Exchange C. Consumer finance D. Money laundering E. None of these

9. Consider the following statements: 1. The Reserve Bank of India (RBI) has said the investment limit in the inflation indexed bonds for individuals has been doubled to Rs 10 lakh. 2. Interest rates on the bonds are linked to Consumer Price Index (CPI). Which of the statements given above is/are correct?

A. 1 only B. 1 and 2 C. 2 only D. Either 1 or 2 E. None of these

10. The public sector banks are banks where a majority state is held by the Government. Which of the following banks is the second largest public sector bank among the 236 PSBs in India in terms of profit?

A. Bank of India B. Punjab National bank C. bank of baroda D. Central Bank of India E. None of these

Answers
1. Answer - Option C
2. Answer - Option A
3. Answer - Option B
4. Answer - Option B
5. Answer - Option B
6. Answer - Option B
7. Answer - Option A
8. Answer - Option C
9. Answer - Option B
10. Answer - Option C

1. Consider the following statements: 1. RBI in consultation with Union Government on 1 April 2014 capped the Ways and Means Advances (WMA) limits for the first half of the new financial year 2014-15 (April 2014-Sep 2014) at 35000 crore rupees. 2. The second half of the limit would be fixed in September 2014. 3. This notification of Reserve Bank of India (RBI) is aimed at triggering fresh flotation of market loans when the government utilizes 75 percent of the WMA limit. Consider the above statements and choose the correct option.

A. 1 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3 E. None of these

2. CSO in its advanced estimates for the year 2013-14 projected the GDP growth rate at constant prices to be-

A. 4.6% B. 4.8% C. 4.9% D. 5.1% E. None of these

3. At current prices, the GDP growth rate for the year 2013-14, as projected by CSO stands at

A. 11.9% B. 12.3% C. 13.3% D. 14.5% E. None of these

4. RBI decided to withdraw currency notes from the circulation which were released prior to the year-

A. 2003 B. 2004 C. 2005 D. 2006 E. None of these

5. As per the status on January 28, 2014 the Marginal Standing Facility (MSF) stands at-

A. 8.5% B. 8.75% C. 9.0% D. 9.25% E. None of these

6. Tele-density in India at end November 2013 has been estimated to be-

A. 73.32 B. 73.69 C. 78.41 D. 79.80 E. None of these

7. India’s economic freedom score in 2014 stands at 55.7 and on the basis of it, India has been placed at...rank in the list of Economic Freedom Index 2014.

A. [latex]{118}^{th}[/latex] B. [latex]{119}^{th}[/latex] C. [latex]{120}^{th}[/latex] D. [latex]{121}^{th}[/latex] E. None of these

8. Petroleum, Ministry has raised the cap of subsidized LPG cylinders-

A. From 6 to 9 B. From 6 to 12 C. From 9 to 12 D. Made unlimited E. None of these

9. Which of the following year has registered the maximum GDP growth rate?

A. 2005-06 B. 2006-07 C. 2007-08 D. 2010-11 E. None of these

10. During the first nine months of the financial year 2013-14, the trade deficit in India stood at-

A. 105 billion dollar B. 108 billion dollar C. 110 billion dollar D. 112 billion dollar E. None of these

Answers
1. Answer - Option D
2. Answer - Option C
3. Answer - Option B
4. Answer - Option C
5. Answer - Option C
6. Answer - Option B
7. Answer - Option C
8. Answer - Option C
9. Answer - Option B
10. Answer - Option C

1. During the first nine months of the financial year 2013-14, India’s exports registered the growth of-

A. + 2.98% B. + 5.94% C. – 4.76% D. – 5.94% E. None of these

2. During the first nine months of the financial year 2013-14, India’s imports registered the growth of-

A. – 4.64% B. – 6.55% C. + 4.64% D. + 6.55% E. None of these

3. A global organization Transparency International presents Corruption Perception Index for 177 countries in the world on the basis of their corruption levels. In this list India has been placed at-

A. [latex]{89}^{th}[/latex] Rank B. [latex]{92}^{nd}[/latex] Rank C. [latex]{94}^{th}[/latex] Rank D. [latex]{96}^{th}[/latex] Rank E. None of these

4. In the Interim Union Budget 2014-15, the revised estimate of fiscal deficit for the year 2013-14 has been placed at-

A. 4.5% of GDP B. 4.6% of GDP C. 4.7% of GDP D. 4.8% of GDP E. None of these

5. In the Interim Union Budget 2014-15, the budget estimate of fiscal deficit for the year 2014-15 stands at-

A. 4.1% of GDP B. 4.3% of GDP C. 4.5% of GDP D. 4.8% of GDP E. None of these

6. In the Interim Union Budget 2014-15, the budget estimate of revenue deficit for the year 2014-15 stands at-

A. 3.6% of GDP B. 3.3% of GDP C. 3.2% of GDP D. 3.0% of GDP E. None of these

7. In the Interim Union Budget 2014-15, out of ` one, how many paise have been allotted to interest payment-

A. 19 B. 20 C. 21 D. 22 E. None of these

8. In the Interim Union Budget 2014-15, out of ` one, how many paise have been allotted to defence-

A. 8 B. 9 C. 10 D. 11 E. None of these

9. Which of the following gives the maximum share in ` one collection as per the Interim Budget 2014-15?

A. Income Tax B. Corporation tax C. Custom duty D. Union excise duty E. None of these

10. The share of Income Tax in ` one collection as per Interim Budget 2014-15 comes to be-

A. 11 paise B. 12 paise C. 13 paise D. 14 paise E. None of these

Answers
1. Answer - Option B
2. Answer - Option B
3. Answer - Option C
4. Answer - Option B
5. Answer - Option A
6. Answer - Option B
7. Answer - Option C
8. Answer - Option C
9. Answer - Option B
10. Answer - Option D

1. As per the first revised estimates of national income, the GDP growth rate of Indian Economy slipped to .........in 2012- 13.

A. 4.0 per cent B. 4.5 per cent C. 3.0 per cent D. 3.8 per cent E. None of these

2. As per the first revised estimates of national income for the year 2012-13, the per capita income at constant prices (2004- 05) is-

A. 38048 B. 38856 C. 39178 D. 40126 E. None of these

3. Who is the new President of NASSCOM?

A. R. Chandrashekher B. Som Mittal C. Nandan Nelikini D. None of the above E. None of these

4. Who is the first women President of Federal Reserves?

A. Ellen Costello B. Janet Yellen C. Karen Peetz D. Carrie Tolstedt E.None of these

5. Consider the list-I and list-II and choose the correct code :

A. (A) [latex]\rightarrow[/latex] 4; (B) [latex]\rightarrow[/latex] 3; (C) [latex]\rightarrow[/latex] 2; (D) [latex]\rightarrow[/latex] 1; B. (A) [latex]\rightarrow[/latex] 1; (B) [latex]\rightarrow[/latex] 2; (C) [latex]\rightarrow[/latex] 3; (D) [latex]\rightarrow[/latex] 4; C. (A) [latex]\rightarrow[/latex] 4; (B) [latex]\rightarrow[/latex] 2; (C) [latex]\rightarrow[/latex] 3; (D) [latex]\rightarrow[/latex] 1; D. (A) [latex]\rightarrow[/latex] 2; (B) [latex]\rightarrow[/latex] 4; (C) [latex]\rightarrow[/latex] 3; (D) [latex]\rightarrow[/latex] 1; E. None of these

6. As per the interim budget 2014-15, the interest payment as per cent of total tax revenue is-

A. 46.7% B. 41.0% C. 45.5% D. 43.3% E. None of these

7. As per the interim budget 2014-15, total subsidy bill of the central government is-

A. 255708 crore B. 257079 crore C. 217941 crore D. 250000 crore E. None of these

8. As per the interim railways budget the operation ratio in 2014-15 is projected to-

A. 89.8% B. 90.8% C. 87.8% D. 90.2% E. None of these

9. As per revised estimates for the year 2013-14, the operating ratio in Indian Railways stood at-

A. 87.8% B. 89.2% C. 90.8% D. 92.1% E. None of these

10. In the Interim Rail Budget 2014-15, the operational ratio for the year 2014-15 has been estimated at-

A. 89.8% B. 90.6% C. 92.1% D. 93.5% E. None of these

Answers
1. Answer - Option A
2. Answer - Option B
3. Answer - Option A
4. Answer - Option B
5. Answer - Option A
6. Answer - Option D
7. Answer - Option A
8. Answer - Option A
9. Answer - Option C
10. Answer - Option A

1. In Interim Budget 2014-15, the excise duty on some capital goods and consumer durables has been cut down-

A. From 14 to 12% B. From 12 to 10% C. From 14 to 10% D. From 10 to 8% E. None of these

2. In Interim Budget 2014-15, the excise duty on small cars, two wheelers and commercial vehicles has been cut down from-

A. 12 to 10% B. 12 to 8% C. 10 to 8% D. 10 to 6% E. None of these

3. Credit policy review of RBI on January 28, 2014 made alteration in

A. Repo Rate and CRR B. CRR and SLR C. Repo Rate and Reverse Repo Rate D. Only CRR E. None of these

4. The Ministerial Conference of World Trade Organisation (WTO) in December 2013 was held in

A. Japan B. Mexico C. Canada D. Indonesia E. None of these

5. Who among the following succeeded Som Mittal as President of NASSCO M on January 5, 2014?

A. Subodh Agarwal B. R. Chandrashekhar C. Sidharth Birla D. Rana Kapoor E. None of these

6. Who is the newly appointed Managing Director and CEO of MCX-SX?

A. Srikant Javlekar B. Saurabh Sarkar C. U.K. Sinha D. Prateep Chowdhary E. None of these

7. During the first half on 2013-14 India's foreign trade deficit stood at :

A. $ 110.042 billion B. $ 126.231 billion C. $ 146.826 billion D. $ 156.562 billion E. None of these

8. Which is the latest round of NELP unveiled by the government for the auction?

A. NELP-IX B. NELP-X C. NELP-XI D. NEP-XIII E. None of these

9. In the fortune's updated and latest list of Indian Global 500 Companies, which stands at the top?

A. Reliance industries B. Indian Oil Corporation C. Bharat Petroleum D. State Bank of India E. None of these

10. Government has notified the New Gas Price Mechanism, applicable to all domestically produced natural gas for a period of five years which has/will become effective since-

A. January 1, 2014 B. February 15, 2014 C. April 1, 2014 D. June 1, 2014 E. None of these

Answers
1. Answer - Option B
2. Answer - Option B
3. Answer - Option C
4. Answer - Option D
5. Answer - Option B
6. Answer - Option C
7. Answer - Option A
8. Answer - Option B
9. Answer - Option B
10. Answer - Option C

1. Which of the following committee is associated with the review of Insider Trading Regulations?

A. Sodhi Committee B. Sinha Committee C. Tarapore Committee D. Chandrashekhar Committee E. None of these

2. World Economic Situation and Prospects Report is associated with :

A. IMF B. World Bank C. United Nations D. WTO E. None of these

3. In India's total foreign debt on September 30, 2013, the share of Multilateral Debt stands at

A. 13.1% B. 14.1% C. 14.6% D. 15.1% E. None of these

4. Nachiket Mor committee has submitted its recommendations which are related to:

A. Insider Trading B. Financial Inclusion C. Micro Financing D. None of the above E. None of these

5. Interest rate on EPF deposits of the employees for the year 2013-14 has been declared to be:

A. 8.25% B. 8.50% C. 8.75% D. 9.00% E. None of these

6. New Nation Youth Policy 2014 includes the youth between the age group of

A. 14-30 years B. 15-29 years C. 15-35 years D. 15-25 years E. None of these

7. RBI has introduced Inflation Indexed Bond which have the locking period of :

A. 5 years B. 10 years C. 15 years D. 20 years E. None of these

8. Consider the following statements in regard to money market in India: (1) It is a market for short-term and long-term funds with maturity ranging from overnight to one year. (2) It acts as an instrument of liquidity adjustment for the Central Bank Which of the statements given above is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

9. Which of the following can be the outcomes of very high inflation in the economy? (1) Reduction in economic growth (2) Increase in savings (3) Reduction in exports Select the correct answer using the codes below :

A. 1 and 3 only B. 3 and 4 only C. 2 and 3 D. 1 and 4 only E. None of these

10. Which of the following activities can lead to financial inclusion in India? (1) Issuing of general purpose credit cards. (2) Strict know your customer’ (KYC) norms (3) Opening of Bank branches in unbanked rural areas. (4) Opening of no-frills account.

A. 1, 2 and 3 only B. 2, 3 and 4 only C. 1, 3 and 4 only D. 2 and 3 only E. None of these

Answers
1. Answer - Option A
2. Answer - Option C
3. Answer - Option A
4. Answer - Option B
5. Answer - Option C
6. Answer - Option B
7. Answer - Option B
8. Answer - Option B
9. Answer - Option D
10. Answer - Option C

1. Consider the following statements : (1) Fiat money is a term used for Gold coins (2) Currency Deposit Ratio is the proportion of the total deposits commercial banks keep as reserves. Which of the above statements is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

2. When the RBI wants to inject liquidity into economy, it may adopt the following : (1) Buy the government securities from the banks. (2) Enter into reverse repo operations (3) Raise cash Reserve Ratio (4) Reduce SLR. Select the correct answer using the codes given below:

A. 1 only B. 1 and 4 only C. 1, 2 and 4 only D. 1, 2, 3 and 4 E. None of these

3. Which of the following statements is/are correct in regard to ‘micro-finance’? (1) Micro-credit extended by banks to individual is reckoned as a part of their priority sector lending. (2) RBI has prescribed a particular model the banks to provide micro-finance. Choose the correct answer using the codes given below:

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

4. Consider the following statements in regard to ‘marginal standing facility (MSF)’ of RBI : (1) It will help in reducing volatility in the overnight lending rates in the inter-bank market. (2) The borrowing under the MSF should be over and above the statutory liquidity requirement. Which of the statements given above is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

5. ‘Based III’ norms target at which of the following? (1) Improve the banking sector’s ability to absorb shocks arising from financial and economic stress. (2) Improve risk management and governance. (3) Strengthen banks’ transparency. Choose the correct answer using the codes given below:

A. 1 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3 E. None of these

6. Which of the following is not correctly matched?

A. Chitra Ramkrishna – National Stock Exchange B. Chanda Kochar – ICICI Bank C. Naina Lal Kidwai – HSBC D. Shikha Sharma – SBI E. None of these

7. Which of the following definitions are correct? (i) Basis points: increase in interest rates in percentage terms. (ii) Repo rate: rate at which commercial banks borrow from the RBI by selling their securities or financial assets to the RBI for a long-period of time. (iii) Reverse repo rate: rate of interest at which the central bank borrows funds from other banks for a short duration. (iv) Cash reserve ratio: minimum percentage of cash deposits that banks must keep with itself to avoid liquidity issues.

A. (i) & (ii) B. (ii), (iii) & (iv) C. (ii) & (iv) D. (iii) & (iv) E. None of these

8. During which plan was the National Bank for Agriculture and Rural Development (NABARD) established to facilitate the rural credit and agricultural development?

A. Third Five Year Plan B. Fifth Five Year Plan C. Sixth Five Year Plan D. Eighth Five Year Plan E. None of these

9. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

A. Commercial Banks B. Co-operative Banks C. Regional Rural Banks D. Micro-finance Institutions E. None of these

10. Choose the correct statements in the context of Cooperative Banks in India. 1. Cooperative Banks operate on no profit no loss basis. 2. Cooperative Banks are allowed to operate only in the agriculture sector. 3. NABARD is a Cooperative Bank.

A. 1 only B. 1 and 2 C. 1 and 3 D. Either 1 or 2 E. None of these

Answers and Explanations
1. Answer - Option D
Explanation -
Currency notes and coins are called fiat money. They don’t have intrinsic value like a gold or silver coin. The currency-deposit ratio measures the relationship between the cash people have on hand and what they have in their accounts.
2. Answer - Option B
Explanation -
By Buying the government securities from the banks and reducing SLR may inject money into the system. However Raising cash Reserve Ratio may take away liquidity from the market as the banks will have to deposit more money with the RBI and similarly entering the reverse repo operations may also take away liquidity from the market.
3. Answer - Option C
Explanation -
Micro-credit extended by banks to individuals is reckoned as a part of their priority sector lending and no particular model has been prescribed for micro-finance and banks have been extended freedom to formulate their own models.
4. Answer - Option A
Explanation -
Marginal Standing Facility (MSF) is the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. Banks can borrow funds through MSF during acute cash shortage (considerable shortfall of liquidity). This measure has been introduced by RBI to regulate short-term asset liability mismatch more effectively and the borrowing is within Statutory liquidity requirements.
The Marginal Standing Facility (MSF) is pegged 100 bps or 1 % above the Repo Rate.
5. Answer - Option D
Explanation -
Basel III (or the Third Basel Accord) is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk. So all the given statements are correct.
6. Answer - Option D
7. Answer - Option C
Explanation -
Basis points: It is the increase in interest rates in percentage terms. For instance, if the interest rate increases by 50 basis points (bsp), then it means that interest rate has been increase by 50%. One percentage point is broken down into 100 basis points. Therefore, an increase from 2% to 3% is an increase of one percentage point or 100 basis points.
Repo rate: Repo rate is the policy rate and is part of RBI’s Liquidity Adjustment Facility (LAF). It is the rate at which commercial banks borrow from the RBI by selling their securities or financial assets to the RBI for a short-period of time. It comes with an agreement that the sold securities will be repurchased by the commercial banks from the RBI at a future date at predetermined price. The repo rate is used by the central bank to increase liquidity in the system.
Reverse repo rate: Reverse Repo Rate is also a part of LAF. It is the rate of interest at which the central bank borrows funds from other banks for a short duration. The banks deposit their short term excess funds with the central bank and earn interest on it. This rate is used by the central bank to absorb liquidity from the economy. Generally it is one percentage less than the Repo rate.
Bank rate: The only way the bank rate is different from the repo rate is that the bank rate is the rate at which banks borrow money from the central bank without any sale of securities. It is generally for a longer period of time. Cash reserve ratio: CRR is the minimum percentage of cash deposits that banks must keep with the central bank. The current rate is 4%, which means for a cash deposit of Rs. 100, the bank has to park 4 rupee with the central bank.
8. Answer - Option c
Explanation -
National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India having headquarters in Mumbai. It was established on 12 July 1982 in sixth five year plan by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture and rural non-farm sector.
9. Answer - Option A
Explanation -
In India, commercial banks have the highest share in the disbursement of credit to agriculture and allied activities.The commercial banks disburse around 60% credit followed by cooperative banks around 30% and RRB and others.
10. Answer - Option A
Explanation -
Cooperative Banks operate on no profit no loss basis, and they operate in all sectors including agriculture sector. NABARD is not a Cooperative Bank National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India.

1. Consider the following statements : 1. Regional Rural Banks grant direct loans and advances to marginal farmers and rural artisans. 2. NABARD is responsible for laying down policies and to oversee the operations of the RRBs Which of the statements given above is/are correct?

A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2 E. None of these

2. Which one of the following agencies is not included in the operation of the Kisan Credit Cards?

A. Scheduled Commercial Banks B. Co-operative Banks C. Regional Rural Banks D. NABARD E. None of these

3. The Reserve Bank of India, released its June Mid-quarter Monetary Policy. Consider the following statements: 1. RBI left its key policy, repo rate unchanged at 7.25% in line. 2. CRR (Cash Reserve Ratio), remained at 4%. 3. Repo is the rate at which banks borrow from the central bank. Select the correct answer using codes given below: Codes:

A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3 E. None of these

4. Consider the following statements about Bharitiya Mahila Bank: 1. The Proposed Bank will be headquartered in Mumbai. 2. It will start 6 branches in Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahati. Select the correct answer using codes given below: Codes:

A. 1 only B. 2 only C. Both 1 and 2 D. Either 1 or 2 E. None of these

5. Consider the list-I and list-II and choose the correct code :

A. 4 3 2 1 B. 3 4 1 2 C. 2 1 3 4 D. 1 2 4 3

6. Core Banking Solution(CBS) provides: 1. multiple delivery channels to the customers. 2. better MIS and reporting to external agencies such as government, RBI, etc. 3. better asset liability management and risk management by banks. Select the answer from the codes given below: Codes:

A. 1 and 2 B. 2 and 3 C. 1 and 3 D. All of the above E. None of these

7. Under which of the following circumstances Reserve Bank of India (RBI) raised the Repo rate under Liquidity Adjustment Facility (LAF) from 7.75 to 8 per cent in January 2014? 1. Global uncertainty continues to surround the prospects for some emerging economies. 2. Domestic fragilities getting accentuated. 3. Financial market contagion is a clear potential risk. 4. The CPI inflation is expected to be on the upside risk . Select the answer from the codes given below: Codes:

A. 1, 2 and 3 B. 2, 3 and 4 C. 2, 3 and 4 D. All of the above E. None of these

8. The RBI Expert Committee to revise and strengthen the monetary policy framework is headed by

A. Dr. Urjit R. Patel Committee B. Suresh Mathur Panel C. Vijay Kelkar Committee D. Shah Nawaz Committee E. None of these

9. RBI appointed a Committee to Review Governance of Boards of Banks in India chaired by P.J. Nayak would 1. review the regulatory compliance require-ments of banks' boards in India. 2. judge what can be rationalised and where requirements need to be enhanced. 3. examine the working of banks’ boards. 4. analyse the representation on banks’ boards. Select the answer from the codes given below: Codes:

A. 1, 2 and 3 B. 2, 3 and 4 C. 1, 3 and 4 D. All of the above E. None of these

10. Which of the following are the recommendations of the RBI Expert Committee to revise and strengthen the monetary policy framework? 1. It recommended that a new Consumer Price Index (CPI) should be adopted by Reserve Bank of India (RBI) to anchor the monetary policy. 2. The committee has also set an inflation target at 4 percent with a band of plus/minus 2 percent around it. 3. The monetary policy decision should be vested in the hands of the Monetary Policy Committee (MPC) that will be headed by the Governor. 4. Not to detach Open Market Operations (OMOs) from the fiscal operations and instead linked solely to the liquidity management. Select the answer from the codes given below: Codes:

A. 1, 2 and 3 B. 2, 3 and 4 C. 1, 3 and 4 D. All of the above E. None of these

Answers and Explanations
1. Answer - Option C
Explanation -
National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India . It was established on 12 July 1982 in sixth five year plan and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture and rural non-farm sector and laying down policies and to oversee the operations of the RRBs Moreover Regional Rural Banks grant direct loans and advances to marginal farmers and rural artisans. So both statements are correct.
2. Answer - Option D
Explanation -
A Kisan Credit Card is a credit card to provide affordable credit for farmers in India. It was started by the Government of India, Reserve Bank of India (RBI), and National Bank for Agricultural and Rural Development (NABARD) in 1998-99 to help farmers access timely and adequate credit. The farmers can use cards to withdraw money from most of the banks like commercial bank,cooperative bank and regional rural banks. However in day-to-day operations NABARD is not included
3. Answer - Option D
Explanation -
According to June-Mid-quarter Monetary Policy of Reserve Bank of India its key policy repo rate, remained unchanged at 7.25% in line. Repo is the rate at which banks borrow from the central bank. CRR (Cash Reserve Ratio) remained at 4%.
4. Answer - Option B
Explanation -
Bharitiya Mahila Bank will be head quartered in New Delhi. It will start 6 branches in Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahati.
5. Answer - Option B
Explanation -
ASSOCHAM - Rana Kapoor FICCI - Naina Lal Kidwai NASSCOM - Krishna Kumar Natarajan IBA - K R Kamath
6. Answer - Option D
Explanation -
The CBS also provides quick and safe transfer of funds, low transaction cost, and anytime anywhere banking facilities. Nowadays, most banks use core banking applications to support their operations where CORE Banking stands for “centralized online real-time electronic banking”. This basically means that all the bank’s branches access applications from centralized data centers. This means that the deposits made are reflected immediately on the bank’s servers and the customer can withdraw the deposited money from any of the bank’s branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution.
7. Answer - Option C
Explanation -
Also, domestically, some loss of momentum of growth is likely. Importantly, following the recommendation of the Dr. Urjit Patel Committee, monetary policy reviews will ordinarily be undertaken in a two-monthly cycle, consistent with the availability of key macroeconomic and financial data
8. Answer - Option A
Explanation -
Expert Committee to revise and strengthen the monetary policy framework submitted its report to the Governor of RBI on 21 January 2013. The committee was headed by Dr. Urjit R Patel, the Deputy Governor of RBI and was constituted on 12 September 2013 by the Governor Dr. Raghuram G Rajan. It has been done to make it transparent and predictable
9. Answer - Option D
Explanation -
The committee would examine the working of banks’ boards including whether adequate time is devoted to issues of strategy, growth, governance and risk management and will also review central bank regulatory guidelines on bank ownership, ownership concentration and representation in the board. It would analyse the representation on banks’ boards to see whether the boards have the appropriate mix of capabilities and the necessary independence to govern the institution, and to investigate possible conflicts of interest in board representation, including among owner representatives and regulators.
10. Answer - Option A
Explanation -
The committee has suggested detachment of Open Market Operations (OMOs) from the fiscal operations and instead linked solely to the liquidity management. OMOs should not be used for managing yields on government securities. These recommendations are intended to better ground inflation expectations by making it clear that inflation is the RBI’s primary objective. It also expects to be held accountable for its performance in this regard. As per the suggestions the government also needs to ensure the fiscal deficit as a ratio of GDP should be brought down to 3 percent by 2016-17 which should be consistent with the Fiscal Responsibility and Budget Management (Amendment) Rules 2013. In its suggestion it has suggested two schemes namely Market Stabilization Scheme (MSS) and Cash Management Bills (CMBs) may be phased out and the government debt and cash management should be taken over by the Debt Management Office of the government. It has also suggested that all fixed income financial products should be treated on par with the bank deposits for the purposes of taxation and TDS.

1. Which of the following organizations is selected by the RBI for issuing globally compatible Legal Entity Identifiers (LEIs)?

A. Industrial Credit and Investment Corporation of India (ICICI ) B. Clearing Corporation of India Ltd (CCIL) C. Housing Development Finance Corporation (HDFC) D. Security and Exchange Board of India (SEBI) E. None of these

2. The primary objective of the European Central Bank, as mandated in Article 2 of the Statute of the Bank, is

A. to define and implement the monetary policy for the Eur-ozone B. to conduct foreign exchange operations C. to maintain price stability within the Eur-ozone. D. to take care of the foreign reserves of the European System of Central Banks and operation of the financial markets. E. None of these

3. Reserve Bank of India has decided to withdraw all currency notes printed before 2005. It is being done:

A. to detect, weed out and estimate the quantum of fake currency in India. B. to unearth the black money in the country. C. for no stated reason. D. to issue plastic currency in near future. E. None of these

4. Consider the following facts about Bhartiya Mahila Bank : 1. BMB was inaugurated on 19th November, 2013, the birth anniversary of Late Indira Gandhi. 2. Usha Ananthasubramanian is the founder Chairperson of the BMB. 3. BMB offered 4.5% interest rate on savings bank deposits upto ` 1 lakh and 5% on deposits above Rs. 1 lakh. The correct codes are

A. 1 only B. 1 and 2 only C. 2 and 3 only D. All of these E. None of these

5. The Reserve Bank of India imposed a fine of ‘10.5 crore in June 2013 on which of the following bank(s) for not adhering to the KYC norms? 1. Axis Bank 2. HDFC Bank 3. ICICI Bank 4. Yes Bank

A. 1 and 2 only B. 2, 3 and 4 only C. 1, 2 and 3 only D. 1, 3 and 4 only E. None of these

6. RBI increased the validity period of the in-principle approval of setting up of new banks from one year to

A. 14 months B. 16 months C. 18 months D. 20 months E. None of these

7. Recently the Reserve Bank penalised three banks for violation of KYC norms and anti-money laundering guidelines. Which one is not among them?

A. Axis Bank B. HDFC C. ICICI D. Kotak Mahindra Bank E. None of these

8. RBI constituted an expert committee for examining its current monetary policy framework. Who is the chairman of the committee?

A. Dr. Urjit Patel B. H R Khan C. Dr Anand Sinha D. K C Chakrabarty E. None of these

9. RBI reduced the Marginal Standing Facility (MSF) Rate to 9% from

A. 9.5% B. 9.3% C. 9.8% D. 9.9% E. None of these

10. Who is the first chairperson and managing director of public sector Bharatiya Mahila Bank (BMB)?

A. Shilpa Phadnis B. Usha Anantha Subramanian C. Reeba Zachariah D. Sudha Misra E. None of these

11. Which is not a source of Agriculture finance in India?

A. Co-operative societies B. Commercial Banks C. Regional Rural Banks D. Central Rural Bank E. None of these

12. In India ‘Report on Currency and Finance’ is the annual publication of

A. SEBI B. RBI C. Finance Commission D. Finance Ministry E. None of these

Answers and Explanations
1. Answer - Option B
Explanation -
Legal Entity Identifiers (LEI) are a 20-character unique identity code assigned to entities which are parties to a financial transaction.Clearing Corporation of India Ltd (CCIL) will issue unique identifier codes to the eligible legal entities participating in financial markets across the globe on a non-profit cost recovery basis. CCIL is recognized by the Regulatory Oversight Committee of the global LEI system and the unique identity codes issued by it will be accepted globally. Once the infrastructure is set up, the LEI numbers will be mandatory for Over-the-Counter (OTC) derivative transactions. The implementation of the global LEI system is led by the Financial Stability Board (FSB). The functioning of CCIL as LEI will be under the regulation and oversight of the Reserve Bank of India.
2. Answer - Option C
Explanation -
The primary objective of the European Central Bank, as mandated in Article 2 of the Statute of the Bank, is to maintain price stability within the Eur-ozone. The basic tasks, as defined in Article 3 of the Statute, are to define and implement the monetary policy for the Eur-ozone, to conduct foreign exchange operations, to take care of the foreign reserves of the European System of Central Banks and operation of the financial market infrastructure under the TARGET2 payments system and the technical platform (currently being developed) for settlement of securities in Europe (TARGET2 Securities).
3. Answer - Option A
4. Answer - Option A
5. Answer - Option C
6. Answer - Option C
7. Answer - Option D
8. Answer - Option A
9. Answer - Option A
10. Answer - Option B
11. Answer - Option D
Explanation -
Co-operative societies, Commercial Banks and Regional Rural Banks are source of agriculture finance in India. They provide finance under various schemes run by central government and state governments to purchase seeds, implements, fertilizer, pesticides etc.
12. Answer - Option B
Explanation -
In India, ‘Report on Currency and Finance’ is the annual publication of Reserve Bank of India.The report highlights the evaluation or devaluation of rupee as a currency along with it other aspects and projects the financial condition of the economy