Exam Details

Subject e.a.f.m
Paper paper 2
Exam / Course
Department
Organization rajasthan public service commission
Position college lecturer
Exam Date 28, June, 2016
City, State rajasthan,


Question Paper

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Admn And Finance ManagementII
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Rajasthan Public Service Commission 2016
Paper Economic Admn And Finance ManagementII
Ques: 150
Time: 3 Hours
Ques
Which function is not included in quantitative methods of credit control by Reserv Bank of India
Bank Rate
Open market operations
Rationing of Credit
Change in cash reserve ratio
...... ....... .... ... ... ........ ......... ... .... ..... .. ...... ..... ..... ... ..
.... ..
.... ..... ... ........
... ... ........
... ... ...... ... .........
Ques
Regional Rural Banks issued for credit facilities to farmers.
Ration card
Debit card
Kishan credit card
PAN card
........ .. ... ....... .. ..... ....... ..... ...... .. ........ ..... ...
.... .....
...... .....
...... ....... .....
... .....
Ques
Which asstes will not be considered as NPA's recommended by Narsimham Committee
Standard
Sub standard
Doubtful
Loss
........ ....... ...... ... ... ........... ... .... .......... .. ... ...
...... .......... .. ... ... .... ... ..

..........
.. ..
........
..........
.....
Ques
Present capital adequacy norms are followed by banks based on
Reserve Bank of India Act
Banking Regulation Act

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Indian Company Act
Basel recommendations
...... ...... ....... ..... ......... ..... ... ..... .. ....... ...
...... ....... .... .........
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Ques
Cost per transaction for bank is minimum by using
Telephone
ATM
Internet
Manual
.. ..... .... .. .... .. ..... ..... .... .... ....... .... ...
......
. ... ..
.......
........
Ques
Authorized capital of Industrial Financial Corporation of India IFCI has been increasing in various steps
from 20 crores to
Rs. 1000 crore
Rs. 1500 crore
Rs. 2500 crore
Rs. 5000 crore
...... ......... ...... ..... ... ....... ..... ......... ..... ... 20 .... .. ..... ... .. ..... .. .
... 1000 ....
... 1500 ....
... 2500 ....
... 5000 ....
Ques
Largest contributor regarding initial financial resources of Unit Trust of India is
Reserve Bank of India
Life Insurance Corporation of India
State Bank of India
Central Government
...... ...... .... .. ......... ........ ........ ... .... ... ....... ..
...... ....... ....
...... .... .... .....
...... ..... ....
......... .....

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Ques
Headquarter of Small industrial Development Bank of India SIDBI is located in
Patna
Lucknow
Bangaluru
Kolkata
...... ... ...... ...... .... .. ........ ... ..... ...
....
....
........
........
Ques
Capital adequacy is a great challenge before banks because
Public sector banks hesitate to tap market.
Bank customers are not interested
Non cooperation
of top management of banks
Bank reform is not allowing to do it
..... ......... ...... .. .... .. ...... ...... .. ........
........... .... ..... .. ...... ... ..... .... ..
.... ...... ... ..... ..... ..
...... .. .... ..... .. ......
.... ..... ... .... ... ....... ..... ....
Ques :10
New product launching in the market is a big challenge before banks because
Customer is not ready to accept new product
Competition amongst various financial institutions
Reserve Bank of India discourage to launch new product
Government policy is not allowing it
..... ... .. ...... .. ...... ...... .. .... .. ... ...... .. ........
..... .. ...... .. ....... .... .. ..... ..... ..... ..
......... ........ ......... .. .... ............
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....... ..... ... .... ... ....... ..... ....
Ques :11
Implementation of charter of customer rights is a challenge before banks because
Most of the banks customer are illeterate
Customers dislike it
Treating customer fairly is moto of banking
Customers are not facing any problems
........ ....... ...... .... .... ...... .. .... ...... .. ........
........ .... .... ......... ..

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.... ...... .... ..
.......... .. ... ..... ....... ...... .. ....... ..
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Ques :12
In Basle committee recommendations, one of the recommendation relates to
Profitability ratio
Capital adequacy ratio
Activity ratio
Assets Liabilities
ratio
..... ....... ... ........... ..., .. ......... ......... ..
....... ......
..... ......... ......
........ ......
...... .....
... ......
Ques :13
Foreign Direct Investment has been allowed in private sector banks upto
49
35
39
10
..... ...... ... ....... ....... ......... ... ....... .. ... .. ..... ..
49
35
39
10
Ques :14
An investment made by multinational corporation to increase its international business is
Foreign Institutional Investment
International Finance Investment
Foreign Direct Investment
Capital Market Investment
........... ..... ...... .... ............. ....... ... ...... .... .. ..... ..... ... ......... ..
....... ....... .........
............. .........
....... ....... .........
..... ..... .........
Ques :15
The country that attracted the largest foreign direct investment inflows was in 2001.
Hong Kong
China
Singapore
India

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.. ... ..... .... 2001 ... ......... ....... ....... ......... ........ ........ ..... ..
........
...
.........
....
Ques :16
are the receipts issued by the depository against the shares issued by an Indian or any other foreign
firm and that are deposited with the depository.
American Deposit Receipts
Global Deposit Receipts
Euro Deposit Receipts
Special Drawing Rights
... ...... .. .. ........ ...... ..... ...... .. .... ... ....... .... ...... .......... ..... .. .......
.......... ... .... .. .. .. ........ .. ... ... .... ...
......... ........ ......
....... ........ ......
.... ........ ......
...... .... .......
Ques :17
The Balance of payment statement consists of accounts.
2
3
4
5
...... ...... ...... .... .. ...... .... ...
2
3
4
5
Ques :18
The World Trade Organization was formed in the year with GATT as its basis.
1993
1994
1995
1996
...... ....... ..... .. .... ... ... .. .... .. ... ... ... ..... ....
1993
1994
1995
1996
Ques :19
Any foregin institutional investor wants to invest in India should get registered in
Securities Exchange Board of India

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Reserve Bank of India
Government of India
Ministry of Finance
... ....... ........ ............ .... ... ......... .... ..... .., ... ... ....... .... .....
...... .......... . ......... .....
...... ....... ....
......... .....
...... .......
Ques :20
Accounting unit of IMF is
GDRs
SDRs
ADRs
EDRs
............. ..... ... ... ....... .... ..
.. .. ..
.. .. ..
. .. ..
. .. ..
Ques :21
Member of International Monetory Fund contributes quota subscription for Determine voting power
Determine SDRs Form a pool of money Select the correct answer using the codes given below
only
only
and
(B)and
............. ..... ... .. ..... .. .... .. ...... .... ... ..... ..... ......... ......
.... ....... ......... ..... .. ... .... .... ... ..... .. ..... .... ... .... ..... .. ... .......

....
....
..
..
Ques :22
is not a function of World Bank.
Exchange stability
Lending
Guarantee
Technical assistance
...... .... .. ..... ..... ..
........ .......
.... ....


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....... ....
....... ......
Ques :23
International Bank for Reconstruction and Development is called as
Asian Development Bank
World Bank
International Monitory Fund
International Development Association
............. ............. . ...... .... .. .. ... ... ...... .... ...
...... ...... ....
...... ....
............. ..... ...
............. ...... .......
Ques :24
Main financial resources of Asian Development Bank are Share capital Loan Special Fund Select
the correct answer using the codes given below
only
only
and
and
...... ...... .... .. ..... ........ ...... ..
... ..... .. ...... ... .... .... ... ..... ..
..... .... ... .... ..... .. ... .......
....
....
..
..
Ques :25
Export Import
Bank of India was set up for the purpose of foreign trade. Financing
Facilitating Promoting Select the correct answer using the codes given below
only
and
and
and
.... .. ........ ....
.... ....... ....... .. .. ....... .... ..... ..... .... ...... ....
......... ..... .... ....... .... .... .... ... ..... .. ..... .... ... .... ..... .. ... .......
....
..
..
..
Ques :26
The risk which is not covered by Export Credit and Guarantee Corporation of India

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Insolvency of importer
Loss due to change in exchange rate
Stop payment due to war
Refusal of taking delivery
.... .. ........ ... . ....... ..... .... ...... .. ...... ..... ..... ....
..... .. .......... ....
........ .. ... ......... .. .....
.... .. .... ...... .....
......... .... .. ......
Ques :27
Hedging techniques are risk management tools cosits of Forward contract Future Contract
SWAPS Select the correct answer using the codes given below
and
and
and
and
.......... ........ ....... ...... ..... ..... .. .. ...... .... ..
..... ...... ....
...... ..... .... .... ... ..... .. ..... .... ... .... ..... .. ... .......
..
..
..
..
Ques :28
A SWAP transaction is a combination of
Spot and forward
Forward and future
SWAP and spot
SWAP and forward
.. ..... ..... .. ..... ..
..... ... .....
..... ... ....
..... ... .....
..... ... .....
Ques :29
Exposure is defined as change in the Value of assets Liabilities Income or expenses Select the
correct answer using the codes given below
only
and
and
and
...... ... ......... .. ... ... .......... ..
.......... .. ..... ........ .. . .... ....
.... ... ..... .. ..... .... ... .... ..... .. ... .......

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....
..
..
..
Ques :30
For trade, travel, tourism and education to abroad rupee is
Partial convertibility for current account
Fully convertibility for current account
Partial convertibility for capital account
Fully convertibility for capital account
...... ......, ....., ...... . ...... .... ..... ...
.... .... .. .... ...... .............
.... .... .. ..... ..... .............
..... .... .. .... ...... .............
..... .... .. ..... ..... .............
Ques :31
The main service functions of primary market are Origination Underwriting Distribution Select
the correct answer using the codes given below
and
and
and
and
........ ..... .. ..... .... ..... ..
..... ........ ...... .... .... ... ..... .. ..... ....
... .... ..... .. ... .......
..
..
..
..
Ques :32
The public issue programme manage by
Promoters
Lead Managers
Advertising Agent
SEBI
.......... ........ ........ .. ..... .. ...... ..... .... ...
.......
.... ......
........ .........
....
Ques :33
Which one credit rating agency in India won prestigious award

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ICAR
CARE
CRISIL
ONICRA
.... ... .... ... ......... ...... .. .......... ........ ....
.. .. .. . (....)
.. . .. . (....)
.. .. .. .. .. .. (........)
. .. .. .. .. . (.......)
Ques :34
Who manages for the issue of Central Government Securities
Central Government
Reserve Bank of India
Ministry of Finance
Ministry of Company Affairs
......... ....... ............. .. ........ .. ..... ... .... ..
..... .....
...... ....... ....
...... .......
..... ...... .. .......
Ques :35
Merchant Banks are not playing development role in Technical aspects Managerial aspects
Enterpreneurial aspects Select the correct answer using the codes given below
and
and
and
and
....... .... ... ........... ....... ..... ..... ... ..
....... .... ......... .......
.... .... ... ..... .. ..... .... ... .... ..... .. ... .......
..
..
..
..
Ques :36
Highly Liquid security remains in
Shares
Mutual fund units
Commercial papers
Treasury bills
.... ... .......... ..
...


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.......... ... ....
.......... ...
....... ......
Ques :37
Deciding factor of measuring the systematic risk is
Theta
Beta
Gamma
Delta
......... ...... .. .... .. ......... ... ..
....
....
....
......
Ques :38
According to Arbitrage Pricing Theory, an investorwould try to increase returns from his portfolio
By reducing the risk
Without changing the portfolio
By increasing the portfolio
By increasing the risk
......... ..... ......... ........ .. ...... .. .......... .... ............ .. ....... ...... .. .....
.....
...... .. .. .... ...
............ ... ..... ......... ..
............ ... ... ...... .... ...
...... .. ..... ...
Ques :39
Mutual Funds in India are regularized by SEBI for safeguard of
Trustee
Sponsor
Asset Management Company
Investors
.... ... .... ...... .......... ..... .. ...... ... ...... ...... .. ... ... ..... .... ..1)
........
.......
....... ..... ......
..........
Ques :40
Investor Protection and Education Fund is created by
Central Government
Reserve Bank of India

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SEBI
Ministry of Commerce
.......... ...... ... ...... ... .. .. ...... ..... ..... ...
..... .....
...... ....... ....
....
....... .......
Ques :41
The Ministry of Corporate Affairs provides wide range of services like Investor helpline Watch out
investors Portal for public grievances Investor awareness programme Which is correct of the above
A
B
C
D
..... ...... ....... ............ .. .... ......... ... ... ...... ..... .... .., ....
..........
......... .......... ... ........ .. ......... ...... .......... ........ ........ .......
... .. ..... .... ..
A
B
C
D
Ques :42
As capital market regulator, the SEBI has been making tremendous effort towards: Investor Protection
Capital market development Policy formulation Select the correct answer using the codes given below

only
only
and
and
.... ...... ..... ..... ....... .. ... ... .. ...... ..... ..... .. ... ..
.......... ......
..... ..... ...... ..... ........ .... .... ... ..... .. ..... .... ... .... ..... .. ... .......
....
....
..
..
Ques :43
The headquarter of the Securities and Exchange Board of India (SEBI) is in
Chennai
Delhi
Mumbai
Kolkata
...... .......... ... ........ ..... .. ........ ..
......
........

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.....
........
Ques :44
The SEBI is not empowered for
Stock exchange regulation
Stcok brokers regulation
Investor protection
Payment and settlement
.... .. ........ ..... ..... ..
..... ........ ......
..... .... ......
........ ......
...... . ......
Ques :45
Capital budget defines as the firm's decision to invest in the asstes.
Very short term
Short term
Medium term
Long term
..... ... ..... .... .. .......... ... ......... .. .......... .... ..
.... ..........
..........
..........
............
Ques :46
A flexible budget is necessary for a business enterprises whose demand for goods is . Stable
Unstable Seasonal Select the correct answer using the codes given below
only
only
and
and
.. ........... ..... ..... ....... ... .... .., .... .... .. ...... ... ...... ..

..... ...... ..... .... .... ... ..... .. ..... .... ... .... ..... .. ... .......
....
....
..
..
Ques :47
Estimated expenditure on Man Power planning at different levels is called
Labour budget
Human resource budget

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Union budget
Master budget
......... ...... .. .... ..... .. ....... .. .... .... ......... .... .. ... .... ..
... ...
.... ...... ...
... ... ...
...... ...
Ques :48
Factor does not influence the size of working capital
Business Cycle
Growth and Expansion
Nature of Business
Dividend policy
........ ..... .. .... .. ........ ..... .... .... ... ..
....... ...
...... . ........
....... ... .......
...... .....
Ques :49
The impact of changes in sales on operating profit shows
Financial leverage
Operating leverage
Combined leverage
Optimum Capital structure
.......... ... .. ...... ... ......... .. ..... ....... ..
........ .......
........ .......
....... .......
........ .......
Ques :50
If financial leverage is fixed interest charges Rs. 1,00,000. Operation profit would be
3,00,000
4,00,000
2,00,000
1,00,000
.... ........ ....... 2 ... ...... ..... .. .... 1,00,000 ... ... ........ ... ....
3,00,000
4,00,000
2,00,000
1,00,000
Ques :51

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Formula for calculating Acid Test
Ratio is
Current Assets Current Liabilities
Quick Assets Quick Liabilities
Current Assets Quick Liabilities
Quick Assets Current Liabilities
.... ...
...... .. .... ..
.... .......... .... ........
....... .......... ....... ........
.... .......... ....... ........
....... .......... .... ........
Ques :52
Which is not acivity ratio
Sales Inventories
Net Profit Sales
Sales Trade debtors
Purchase Creditors
..... ........ ...... ..... ..
...... .....
.... ... ......
...... .......... ......
... ......
Ques :53
Debt Equity
ratio is a
Liquidity ratio
Leverage ratio
Profitable ratio
Activity ratio
.. ....
...... ..
..... ......
....... ......
....... ......
........ ......
Ques :54
Current Asstes Turnover Ratio is included in
Activity ratio
Profitable ratio
Liquidity ratio
Leverage ratio
.... ....... ..... ...... ... ...... ..... .... ...
........ ......
....... ......
..... ......

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....... ......
Ques :55
Increase is fixed assets due to purchase is a
Sources of funds
Uses of funds
Sources and Uses of funds both
Capital gain
... .. .... ...... .......... ... ...... ...
... .. ......
... .. .....
... .. ...... . ..... .....
..... ...
Ques :56
Owner of retained earning is
Equity shareholders
Preference shareholders
Debenture holders
Bond holders
........... .. .. ...... ..
.... ........
............ ........
.. ...
....
.... ....
Ques :57
Confidence among shareholder remains due to
Liberal dividend policy
Conservative dividend policy
Stable dividend policy
Interim dividend policy
......... ... ........ .... .. ..
.... ...... .....
.... ...... .....
..... ...... .....
....... ...... .....
Ques :58
The term Regression was first used by
Sir Fransis Galton
Goode and Half
P V Young
Morris Hamberg
........ .... .. ..... .... ... .. .... ..... ...

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.. ........ ......
.... ... ...
... ... ...
...... ........
Ques :59
In any distribution the success and failure does not ramian constant, that distribution can not be
Binomial
Poisson
Normal
Gaussian
..... .. ...... ... ..... ... ...... ..... ..... .... .., .. ..... .. .....
..........
.....
.......
.......
Ques :60
Number of accidents met by a taxi driver in a year. The distribution is applicable.
Binomial
Poisson
Normal
Gaussian
.......... ... ...... .. ..... .. .... ... ...... ..... ...... ..... .. .... .., .... .... .... ...
..........
.....
.......
.......
Ques :61
Each and every unit of the population has an equal chance of being selected in case of
Purposive method
Mixed method
Random method
Self Selected
....... ... ...... ... ....... .... .. ... .... ... ....... ..... .... ..
..........
........
.........
..... ...... ......
Ques :62
A drop of blood is an example of
Random sample

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Extensive sample
Area sample
Quota sample
... ... .. .... .. .. ...... ..
......... ........
... ........
..... ........
...... ........
Ques :63
" The hypothesis is a proposition which can be put to test to determine validity" defined by
Lundberg
Goode and Half
P. V. Young
Morris Hamberg
" .......... .. ... .. .. ..... .. ......... ... ......... .... .. ... ... .......... ..... ... .. "
........
.... ... ....
.. .. ...
...... ........
Ques :64
The error refers to the rejection of a null hypothesis when it is true is symbolized by
Alfa
Beta
Gamma
Theta
.. ...... .. ..... .......... .. .. .. .... .., .. ....... .... ... .. ...... .... .., ... ......
...... ...... ..... .... ...
.....
....
....
....
Ques :65
In ANOVA table variance ratio is stated as
F
T
Z
X
..... ....... ... ...... ...... .. ... ... ...... ..... .... ..
..
...
...
...

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Ques :66
The method in which the given data are plotted on a graph paper is called
Parabolic curve method
Newton's method
Graphic method
Langrang's method
.. ...... ..... .... .. ..... .. ... .... .. ..... ..... .... ..
.......... ... ......
...... ......
...... ......
...... ......
Ques :67
The linear programming suggests the selection of the possible combination of production to get
maximum profit.
Good
Better
Best
Reasonable
..... ....... ....... ... .... ....... .. ....... ..... .. ... .. ..... .... ..
......
........
........
.....
Ques :68
Graphic method of linear programming is suitable in case of variable only.
2
3
4
5
..... ....... ... .... ..
... ...... .. ....... ... ..... .. .. .... ... ...... .... ...
2
3
4
5
Ques :69
The number that exists at the intersection of the key column and key row of a simple table is known as
Slack variable
Key number
Row number
Column number
......... ....... ... ... ...... . ... .... .. .......... .. ...... ...... .. .... ..
........ ..

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... ......
...... ......
.... ......
Ques :70
The sixplex method was originated by
George B. Dantzig
James B. Dantzig
George B. Dante
George V Dantzig
........... ...... .. ..... .. ...... ..... ...
..... .. .......
..... .. .......
..... .. .....
..... .. .......
Ques :71
A person or a unit coming to the counter of service centre for the purpose of getting specific serviced is called

Person
Consumer
Customer
Unit
.. ....... .. .... .. ......... .... ..... .... .. .... .... ..... .. ... .., ... .... ..
.......
........
....
....
Ques :72
Balking refers
A customer decides not to join the queue due to much lenght queue
Leaving one queue and joining other queue
Customers remains in the queue
Customer waits in the queue for some time and then quits
....... ......... ..
.. .... .. ..... .... .. .... . ..... .. .... ..
.. .... ..... ...... .... ... ..... ..
.... .... ... ... .... ..
.... .... ... ... ... .. ..... ....... .... .. .. ... ... ... .... ..
Ques :73
Arrival rate denotes by
Lamda
Mue

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Beta
Gama
.... .. .. .. ... ... ........... ..... .... ..
......
....
....
....
Ques :74
Reneging refers
A customer who waits in the queue for some time
A customer decides not to join the queue due to much length
A Customer who waits in the queue for some time and then quits
A Customer who does not like to join the queue
..... .... ...... .... ..
.... .. ... ... .. .... .... ... ....... .... ..
.... .. ..... ..... .... .. .... .... ... . ..... .. .... ..
.... .... ... ... ... .. ..... ....... .... .. .. ... ... ... .... ..
.... .. .... ... ..... .... ..... ....
Ques :75
The technique which helps in minimizing total waiting and service cost is
Probability
Linear Programming
Game theory
Queuing theroy
.. ..... .. ... ....... ... . . .... .... .. ....... .... ... ... .... ..
.........
..... ........
...... ........
.... ........
Ques :76
The game theory propounded by
John von
Erving
Henry
Dantzig
... ........ ........... ..... ...
... ...
.......
......
.......
Ques :77

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Minimax refers to the value which is minimum of maximum value of a
Pay off matrix
Row
Column
Game
.......... .. ....... ....... ... ....... ..... .. ......... ..
........
......
....
...
Ques :78
The course of action adopted by the competitor of the game is known as
Game
Player
Play
Competitor
...... ... ... .... .... ............. .. ...... ... .......... .. ...... .... .. ... .... .... ..
......
.......
...
.........
Ques :79
Critical path indicates the possible time for the completion of a project.
Minimum
Reasonable
Maximum
Sufficient
......... ..... ......... .. ..... .... .. ..... ...... ........ ... .. ..... .... ..
.......
.....
.......
.......
Ques :80
Dummy activity is that activity performed
Before an activity
After an activity
Along with other activity
Without time determination
... ...... .. ... ...... .. .. .. ....... ... .... ..
..... ...... .. .....
..... ...... .. ...


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..... ...... .. ...
..... ... .........
Ques :81
Node is the event of two or more activities.
Beginning
Ending
In between
Any time
... .. .. .. .. ..... ........ ... .... ..
.........
......
... ...
..... .. ...
Ques :82
Programme and Evaluation Technique was developed by
Navy of United States America
Army of United States America
Airforce of United States America
Defence of United States America
........ ......... ... ...... ..... .. ...... ..... ...
....... .... ........ ... ...... ......
....... .... ........ ... .... ......
....... .... ........ ... .... ..... ......
....... .... ........ ... .... ......
Ques :83
Which of the following cannot be called as a debt Instrument as reffered in financial transactions
Bonds
Loans
Stocks
Commercial Papers
........ ........ ... ......... ...... ...... ... .. ..... .. ..... ..... ... .. ....
.......
..
......
.......... ...
Ques :84
Which of the following is known as plastic money
Bearer cheque
Credit Cards
Demand Drafts
Gift cheque

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...... ... .. ..... ........ ..... .. ... ... .... .... ..
.... ...
....... .....
.... .....
..... ...
Ques :85
Electronic clearing service in Banks can be availed only by
Individuals
Corporates
Senior Ciizens
All of these
...... ... ........... ....... .... .... .. ......
..........
..........
....... .........
..... .. ...
Ques :86
The first nationalisation of commercial banks was done on
19.07.1969
19.07.1970
19.07.1967
15.08.1967
.......... ...... .. .... ........... .. ..... ...
19.07.1969
19.07.1970
19.07.1967
15.08.1967
Ques :87
RBI was established in 1935 pursuant to recommendation of
Gorwala committee
Talwar Committee
The Hilton Young Commission
None of these
1935 ... ...... ....... .... ... ....... ... ........... .. ...... ... ...
....... .......
..... .......
....... ... .....
..... .. ... .....
Ques :88
One rupeenote and all coins are issued by

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Reserve Bank of India
Centeral Governmet
Central and State Government
All of these
.. ..... .. ... ... ... ....... ...... ..... ..... .... ..
...... ....... ....
..... .....
..... ... .... .......
..... .. ...
Ques :89
Banking ombudsman has been constituted under which act
Banking Regulation Act
RBI Act
SBI Act
All of these
........ ...... .. ... .... ......... .. ... ..... ... ..
........ ......... .........
RBI .........
SBI .........
..... .. ...
Ques :90
The WTO was born out of negotiations in which round of the GATT.
Tokyo Round
Geneva Round
Turkey Round
Uruguay Round
... .. ... .. ...... ... ...... .. ...... ....... ..... ....... ... ..
...... ......
...... ......
.... ......
...... ......
Ques :91
Basel norms which are important regulatory stipulations are meant for which sector
Micro Finance
Insurance
Pension Funds
Banking
.... ....... .. .......... ....... ... .., .... ..... .. .... .... ..
...... ......
....
..... ...
........

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Ques :92
Export Import
Bank of India was setup in
1982
1983
1992
1994
.... .....
... .... ... ........ ..... ...
1982
1983
1992
1994
Ques :93
What is call money
Money borrowed or lent for a day.
Money borrowed for more than one day but upto 3 days
Money borrowed for more than one day but upto 7 days
Money borrowed for more than one day but upto 14 days
... ..... .... ..
.. .... .. ..... ..... .... ... ... .. .... ... ...
.. .... .. ..... ...... ... ...... .. .. ..... ..... .... ... ...
.. .... .. ..... ...... ... ...... .. .. ..... ..... .... ... ...
.. .... .. ..... ...... 14 ...... .. .. ..... ..... .... ... ...
Ques :94
Return on a security consists which of the following
Dividend
Capital gain
Both dividend and capital gain
None of these
.......... .. ....... ...... ... .. ..... ...... .... ..
......
..... ...
...... ... ..... ... .....
..... .. ... .....
Ques :95
Which of the following is not considered a money market instrument
Treasury Bills
Shares and Bonds
Commercial paper
Certificate of deposit
......... .. ..... ..... ..... ..... ..... .... ....
....... ......
... ... .....

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.......... ...
... .. ..... ...
Ques :96
Which of the following tax is exempted for Mutual Funds
Income Tax
Capital Gain Tax
Wealth Tax
All of these
.......... ..... .. ..... ...... ... .. ... .. .. ... ... ... ... ..
....
..... ... ..
.. ..
..... .. ...
Ques :97
In financial system reforms, market lots abolished for shares traded in form.
Physical
Dematerialised
Both Physical and Dematerialised
None of these
........ ....... ....... ... ... ... ..... .. ....... .. ..... ..... ..... .. ..... ..... ...
......
.....
...... ... ..... .....
..... .. ... .....
Ques :98
In the traditional protfolio construction approach, a portfolio manager considers
Risk
Return
Risk and Return
Risk and capital Gain
........ ............ ........ ......... ..., .. ............ ...... ...... .... ..
......
.......
...... ... .......
...... ... ..... ...
Ques :99
Markowitz model of portfolio theory was developed in
1952
1962
1972

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1982
............ ........ .. ........... .... ... ........ ..... ... ..
1952
1962
1972
1982
Ques :100
Whic one of the following is not a current liability
Outstanding expenses
Advance Payment
Income Tax Payable
Bank Overdraft
...... ... .. ..... .... ........ ..... ..
..... ....
..... ......
... ....
.... ...........
Ques :101
If the opening stock is Rs. 58,000, purchase is Rs. 4,84,000 sales is Rs. 6,40,000 Gross Profit rate 25 on
sales, then what will be the stock turnover ration
5 times
7 times
8 times
10 times
.... ......... ..... 58,000 ... .., ... 4,84,000 ... .., ....... 6,40,000 ... .., ... ... .. ....... .. 25% .., ..
..... ..... ...... .... ....
5 ....
7 ....
8 ....
10 ....
Ques :102
The excess of sales over variable cost is called
Margin of safety
Contribution
Fixed cost
Profit
....... .. ............ .... .. ... ....... ...... ..
...... ... ....
......
..... ....
...

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Ques :103
Which one of the following is not the example of Intangible Assets
Goodwill
Copyright
Trade mark
Preliminary expenses
...... ... .. ..... ...... .......... .. ...... ..... ..
.......
........
........
......... ....
Ques :104
ABC analysis technique is related to
Ratio Analysis
Inventory Analysis
Trend Analysis
Funds Flow Analysis
..... ......... ..... .. ........ ..
...... .........
..... .........
........ .........
... ..... .........
Ques :105
Margin of saftey is
Projected sales Actual
sales
BEP sales Projected
sales
Actual sales BEP
sales
Actual sales Cost
of goods sold
...... ... .... ..
......... ....... ..
....... .......
....
...... ....... ..
....... .......
......... ....... ....
...... .......
......... ....... ....
.. ... ... ....
Ques :106
What will be the affect of rise in price per unit on BEP, if other things remain same
BEP will increase
BEP will decrease
BEP will remain the same
None of these
..... .... ..... ... ...... .. .. ..
...... ...... .. .... ..... ...., .... .... ..... .... .... ..
.. ..
...... ....... .. ......
.. ..
...... ....... .. ......

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.. ..
...... ....... .... .....
..... .. ... .....
Ques :107
When the current ration is 2 5 and the amount of current liabilities is Rs. 25,000 what is the amount of
current assets
Rs. 62,500
Rs. 12,500
Rs. 10,000
Rs. 5,000
.. .... ...... 2 5 .. ... .... .......... ... .... 25,000 ... .., .... .......... ... ..... .... ..
Rs. 62,500
Rs. 12,500
Rs. 10,000
Rs. 5,000
Ques :108
Profitability Index is the ratio of
Initial Investment to Present value of cash Inflows
Present value of cash Inflows to Initial Investment
Initial Investment to Average cash Inflows
Project's Average Profit after tax to Initial Investment in Project
......... ....... ...... ..
......... ...... .. .... ............ .. ....... .....
.... ............ .. ....... ..... .. ......... ......
......... ...... .. ... .... ............
.. ....... ......... .. ... ... .. ......... ... ......... ......
Ques :109
Marginal cost equation is
S V
F P
S V F P
S V
F P
S V F P
...... .... ...... ..
S V
F P
S V F P
S V
F P
S V F P
Ques :110
Annual consumption of material 50,000 units, cost of processing an order is Rs. 20 and carrying cost per unit
is 50 paise per year, then what will be EOQ
40,000 units
2,000 units
1,000 units
500 units

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...... .. ........ ..... 50,000 ......., .. .... .... ... .... 20 ..... ... ..... .... ......
.... 50 .... ......... .., .. ....... .... ..... .... ....
40,000 .......
2,000 .......
1,000 .......
500 .......
Ques :111
Which of the following budget is a consolidated summary of all the functional budget
Master
Sales
Production
Cash
............. ..... ... .. ..... ... .......... ..... .. .. ....... ...... ..
......
......
.......
....
Ques :112
What are the limits of the correlation coefficient
No limit
1
and 1
0 and including the limits
1
and including the limits
....... ...... ... ....... .... ..
... .... .....
1
... 1
0 ... ...... .....
1
... ...... .....
Ques :113
The two lines of regression become identical when
r 1
r 1
r 0
r 1 or r 1
........ ... ..... ....... .... .. .... .., ..
r 1
r 1
r 0
r 1 .. r 1
Ques :114
Given the regression equation as 3x y 13 and 2x 5y 20, which one is the regression equation of y on x

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1st equation
2nd equation
Both 1st equation and 2nd equation
None of these
3x y 13 ... 2x 5y 20 .. ... ... ........ ...... ..... ... .., ... .. x .. y .. ........
...... ..
.... ......
..... ......
.... ...... ... ..... ...... .....
..... .. ... .....
Ques :115
If two events A and B are independent, then
They can be mutually exclusive
They cannot be mutually exclusive
They cannot be exhaustive
Both, They cannot be mutually exclusive and They cannot be exhaustive
.... .. ....... A ... B ....... .., ..
.. ...... ...... .. .... ..
.. ...... ...... ..... .. .... ..
.. ........ ..... .. .... ..
.. ...... ...... ..... .. .... .. ... .. ........ ..... .. .... .. .....
Ques :116
A bag contains 12 balls which are numbered from 1 to 12. If a ball is selected at random, what is the
probability that the number of ball will be a multiple of 5 or 6
0.30
0.25
0.20
1/3
.. .... ... 12 ..... .., ... .. 1 .. 12 .. ..... ..... ... .., .... ......... ... .. .. .... .... .... .., ....
......... .. ... .... ... ...... 5 .. 6 .... ... ....
0.30
0.25
0.20
1/3
Ques :117
A number is selected from the first 25 natural numbers. What is the probability that it would be divisible by 4
or 7
9/25
11/25
9/625
11/625
..... 25 .......... ........ .. .. ...... .. ..... ..... ..., .... ......... .. ... .. 4 .. 7 .. .......
....

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9/25
11/25
9/625
11/625
Ques :118
In normal distribution mean, median and mode are
Zero
Not equal
Equal
None of these
....... ...... ... ....., ...... ... ..... ..
.....
.... .....
....
..... .. ... .....
Ques :119
If S.D. 20 and sample size is 100, then standard error of mean is
2
5
1/5
None of these
.... S. D. 20 ... ......... .... 100 .. .. ..... ... ..... ...... ..
2
5
1/5
..... .. ... .....
Ques :120
If the price of all commodities in a place have increased 1.25 times in comparison to the base period, the index
number of prices of that place is now
125
150
225
None of these
.... .. ..... ... ... ....... .. ..... .... .... ... ..... ... 1.25 .... .. .... .., .. .. ..... .. .......
.. ....... ..
125
150
225
..... .. ... .....
Ques :121
Linear Programming was developed by
George B. Dantzig
T. C. Koopans
J. V. Neuman

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Oscar Margenstern
..... .......... ...... ........ ... ... ..
..... ... .........
.... ... ......
... ... .......
..... ...........
Ques :122
Main sources of hypothesis construction is
General Traits
Analogies
Personal experiances
All of these
.......... ........ .. ..... ...... ..
....... .........
.........
......... .....
..... .. ...
Ques :123
Game Theory helps to understand the behaviour of firms
That are strategically independent
That are strategically interdependent
That do not face any competition
That are not profit maximization
...... ........ .... .. .... ..... ... ..... ..
.. ........ ... .. ....... ..
.. ........ ... .. ...... ....... ..
.. ... .. ............ .. ..... ..... ....
.. ... ........... ..... ..
Ques :124
An index number is used
To measure changes in quantity
To measure changes in demand
To measure changes in price
To measure changes in variable over time
....... ..... ..... .... ..
..... ... ......... ..... ..
.... ... ......... ..... ..
..... ... ......... ..... ..
........ .... ... ......... ..... ..
Ques :125

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How many local boards of RBI are there
4
5
6
3
....... .... .. ...... ....... ..... .... ..
4
5
6
3
Ques :126
Which of the following Acts not administerd by the RBI
Banking Regulation Act
Government Securities Regulation Act
Foreign Exchange Management Act
Depositories Act
............. ........... ... .. ..... ....... .... ...... ........ ..... ..
........ ...... .........
....... .......... ...... .........
....... ........ ...... .........
.......... .........
Ques :127
How much is the repo rate
as on 31st March 2016
6.75
5.75
7.75
8.75
31 ..... 2016 .. ..... ... ...... ..
6.75
5.75
7.75
8.75
Ques :128
Which of the following was the first financial institution in India for industrial finance
ICICI
IFCI
SIDB
SFCs
......... ...... .. ..... .... ... ............. ... .. ..... .... ........ ...... ..
......... ... ... ......... .....
...... ......... ...... .....
... ...... ...... .....
.... ...... .......

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Ques :129
Which of the following was India's first mutual fund
PNB mutual fund
BOI mutual fund
SBI mutual fund
Unit trust of India
.... ... ............. ... .. ..... .... .......... .... ..
..... ..... .... .......... ....
.... .. ....... .......... ....
..... .... .. ....... .......... ....
...... .... ....... .....
Ques :130
When the GATT come into being
1948
1949
1947
1951
... .. ........ ... ...
1948
1949
1947
1951
Ques :131
External Commercial borrowings are administerd by
Commercial Banks
Enforcement Directrate
Reserve Bank of India
Ministry of External Trade
...... .......... .. .. ...... ..... .... ..
.......... ...... ......
....... ......... ......
....... .... ......
....... ....... ....... ......
Ques :132
Current account, as a part of overall balance of payment, does not take into account
Merchandise
Invisibles
Foreign Direct Investment
Insurance
... ...... ...... .. ... .. ... ... .... .... ... ..... .. ... ......... ..... ..
.......... .......
...... ....

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....... ....... .........
....
Ques :133
Netting helps in
Reduction in transaction cost
Reduction in Cash requirement
Better control of subsidiaris
Reduction in interest cost
....... .. ...... ...... ..
...... .... ... ... .... ...
..... ... ........ ...
..... .......... .. ..... ........ ...
..... .... ... ... .... ...
Ques :134
An inverted yield curve is considered to be sign of
Economic boom
Economic recession
Economic stagnation
None of these
........ ....... ... ..... .... .... ..
....... ........
....... .....
....... ........
..... .. ... .....
Ques :135
When the securities plotted above the security market line are considered to be
Overpriced
Underpriced
Aggressive
Defensive
.......... ..... .... .. ... ............. .. ...... .. ........ ..
...............
..............
......
..........
Ques :136
The extreme form of efficient market hypothesis is
Weak form
Superstrong form
Strong form
Semistrong
form

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.... ..... .......... .. ....... ..
....... ...
......... ...
..... ...
.......... ...
Ques :137
SEBI's main objective is
To protect the interest of investors
To operate stock exchange
To decide the price of stocks in stock exchange
To manage stock brokerage firms
.... .. ..... ....... ..
................ .. ...... .. ........ ....
...... .......... .. ......
...... .......... ... ... ... ..... ......... ....
...... .... ... .. ...... ....
Ques :138
Which authority regulates stock exchange
Ministry of finance
RBI
SEBI
NSDL
..... ......... .......... .. ...... .... ..
...... .......
....... .... .. .......
....
..... ............. .......... ....
Ques :139
The main objective of financial management is
Sales maximization
Profit maximization
Wealth maximization
Production maximization
........ ...... .. ..... ...... ..
...... .. ....... ....
... .. ....... ....
....... .. ....... ....
....... .. ....... ....
Ques :140

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If the internal rate of return is greater than required rate of return, the project will be
Accepted
Rejected
No decision will be made
Put on hold
........ ......... .. ....... ......... .. ..... .... .. .........
....... ... ......
....... ... ......
... ....... ..... ....
... ....... .. .......
Ques :141
In aggressive working apital model, the size of working capital is
Very high
Very low
Moderate
None of these
..... ........ ..... .... ... ........ ..... .. .... ....
..... ....
..... .....
.......
..... .. ... .....
Ques :142
One of the following does not affect the determination of working capital
Credit policy
Availability of raw material
Inflation
Operating cycle
...... ... .. ... .. ........ ..... .. ......... ..... ..
... .....
..... ... ... ........
..... ......
........ ...
Ques :143
Calculate operating leverage from following information Sales Rs. 80,00,000 Variable Cost Rs. 40,00,000
Fixed Cost Rs. 5,00,000 Borrowed Capital Rs. 40,00,000 10% p.a.
2.00
1.00
1.14
1.28
............. ..... .. ........ ....... .... ....... :..
.... 80,00,000 ..... ............ ....
40,00,000 ..... ..... .... 5,00,000 .. ..... 40,00,000 10% ..... .... ..... ..
2.00
1.00

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1.14
1.28
Ques :144
If current ration is 5 2 and current liabilities are Rs. 200,000. How much is current assets
14,00,000
7,00,000
5,00,000
8,00,000
.... .... ...... 5 2 .. ... .... ........ 2,00,000 ..... .. .. .... ....... ....
14,00,000
7,00,000
5,00,000
8,00,000
Ques :145
Gross Profit is Rs. 80,000; Gross Profit Inventory ratio is 25 Calculate sales
Rs. 200,000
Rs. 3,50,000
Rs. 400,000
Rs. 3,20,000
... ... .. 80,000 ....., ... ... ... .......... ...... .. 25 ...... .... .......
Rs. 200,000
Rs. 3,50,000
Rs. 400,000
Rs. 3,20,000
Ques :146
An increase in working capital is considered as
Application of funds
Sources of funds
No impact on source application
It is merely a transfer of funds offsetting
........ ..... ... ...... .. ........ ....
..... .. .....
..... .. ......
..... ... ...... .. ... ..... .....
.. .... ..... .. ............ .......... ..
Ques :147
Funds flow analysis helps in following
Sources and Application of funds
Funds received or lost in operations
About preparation of Budget
All of these
... ..... ......... .. ..... ... ... ...... ..
..... .. ...... ... .....

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...... ... ...... .... ..... ... ......
... ........ ...
..... .. ...
Ques :148
Assume Sales Rs. 40,000 Fixed overhead Rs. 10,000 Find out marginal cost if profit is planned at Rs. 5000.
Rs. 25,000
Rs. 30,000
Rs. 15,000
Rs. 50,000
... .. ...... 40,000 ..... ...... ......... 10,000 ..... ........ ... 5,000 ..... .. ....... .....
.....
Rs. 25,000
Rs. 30,000
Rs. 15,000
Rs. 50,000
Ques :149
There is an increase in sales from Rs. 20 lakh to Rs. 30 lakhs and increase in profit from Rs. 2 lakh to Rs. 4
lakhs. What P/V ratio
10
30%
20
11.5
.... ...... Rs. 20 ... .. .... Rs. 30 ... ..; ... 2 ... .. .... 4 ... .. .. ... ..... ...... ....
10
30%
20
11.5
Ques :150
Issue of Bonus shares results into
Change in ownership percentage
Change in Assets
Increase in number of shares outstanding
Non cpaitalization
of reserves
.... .... .. ........ .. ....... ....
.......... ....... ... .........
.......... ... .........
..... ... ...... ... ......
..... .. ... ........



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