COOPERATIVE BANKING
COOPERATIVE BANKING MCQ
1. The International Co-operative Alliance (ICA) was formed in the year :
(A) 1888 (B) 1895 (C) 1890 (D) 1892
Ans: B
2. The country in which Co-operative movement was first originated?
(A) France (B) Denmark (C) Germany (D) England
Ans: D
3. The President of a Co-operative society is an :
(A) Officer (B) Employee (C) Owner (D) Advisor
Ans: A
4. What was the objective of National Policy on Co- operatives framed in 2002?
(A) Provide support for promotion and development of cooperatives (B) Reduction of’ regional imbalances
(C) Strengthening of co-operative education, training and human resource development. (D) All of the above
Ans: D
5. Which year National Development Council (NDC) had recommended a National Policy on Co-operative Societies?
(A) 1955 (B) 1958 (C) 1960 (D) 1957
Ans: B
6. A famous personality who has adopted new measures for giving relief to the people living in urban areas of Germany?
(A) F. W. Raiffeisen (B) Herr Franz Schulze (C) Sir Devzil lbbetson (D) Sir Malcolm Darling
Ans: B
7. The Multi-State Co-operative Societies Act 2002 of India has incorporated Co-operative values and principles in its ————————— schedule.
(A) First (B) Second (C) Third (D) Fourth
Ans: B
8. The Committee headed by ————————— recommended the principle ‘One Man One Vote’.
(A) Raiffeisen (B) Gorwala (C) Mac Lagan (D) Minto Morley
Ans: C
9. In which Five Year Plan, National Co-operative Consumers’ Federation was established?
(A) First (B) Second (C) Third (D) Fourth
Ans: D
10. The Kaira District Milk Producers Union was formed in the year :
(A) 1912 (B) 1915 (C) 1946 (D) 1950
Ans: C
11. Which committee recommended the formation of NABARD?
(A) B.Sivaraman (B) Khusro (C) Brahm Prakash (D) None of these
Ans: A
12. Interest rates of deposits of Co-operative Credit Societies are fixed by :
(A) General Body (B) RBI (C) Government (D) Registrar
Ans: D
13. Operation flood III was launched by:
(A) NDDB (B) NCDC (C) NCUI (D) NAFED
Ans: A
14. Rochdale friendly Co-operative Society was formed in :
(A) 1825 (B) 1830 (C) 1835 (D) 1840
Ans: B
15. LAMPS stands for :
(A) Large Sized Adivasi Multipurpose Co-operative Societies (B) Large Sized Multipurpose Co-operative Societies
(C) Large Agricultural Multipurpose Co-operative Societies (D) None of the above
Ans: A
16. The first All India Co-operative Congress held at:
(A) Patna (B) Bombay (C) New Delhi (D) Calcutta
Ans: B
(A) 1888 (B) 1895 (C) 1890 (D) 1892
Ans: B
2. The country in which Co-operative movement was first originated?
(A) France (B) Denmark (C) Germany (D) England
Ans: D
3. The President of a Co-operative society is an :
(A) Officer (B) Employee (C) Owner (D) Advisor
Ans: A
4. What was the objective of National Policy on Co- operatives framed in 2002?
(A) Provide support for promotion and development of cooperatives (B) Reduction of’ regional imbalances
(C) Strengthening of co-operative education, training and human resource development. (D) All of the above
Ans: D
5. Which year National Development Council (NDC) had recommended a National Policy on Co-operative Societies?
(A) 1955 (B) 1958 (C) 1960 (D) 1957
Ans: B
6. A famous personality who has adopted new measures for giving relief to the people living in urban areas of Germany?
(A) F. W. Raiffeisen (B) Herr Franz Schulze (C) Sir Devzil lbbetson (D) Sir Malcolm Darling
Ans: B
7. The Multi-State Co-operative Societies Act 2002 of India has incorporated Co-operative values and principles in its ————————— schedule.
(A) First (B) Second (C) Third (D) Fourth
Ans: B
8. The Committee headed by ————————— recommended the principle ‘One Man One Vote’.
(A) Raiffeisen (B) Gorwala (C) Mac Lagan (D) Minto Morley
Ans: C
9. In which Five Year Plan, National Co-operative Consumers’ Federation was established?
(A) First (B) Second (C) Third (D) Fourth
Ans: D
10. The Kaira District Milk Producers Union was formed in the year :
(A) 1912 (B) 1915 (C) 1946 (D) 1950
Ans: C
11. Which committee recommended the formation of NABARD?
(A) B.Sivaraman (B) Khusro (C) Brahm Prakash (D) None of these
Ans: A
12. Interest rates of deposits of Co-operative Credit Societies are fixed by :
(A) General Body (B) RBI (C) Government (D) Registrar
Ans: D
13. Operation flood III was launched by:
(A) NDDB (B) NCDC (C) NCUI (D) NAFED
Ans: A
14. Rochdale friendly Co-operative Society was formed in :
(A) 1825 (B) 1830 (C) 1835 (D) 1840
Ans: B
15. LAMPS stands for :
(A) Large Sized Adivasi Multipurpose Co-operative Societies (B) Large Sized Multipurpose Co-operative Societies
(C) Large Agricultural Multipurpose Co-operative Societies (D) None of the above
Ans: A
16. The first All India Co-operative Congress held at:
(A) Patna (B) Bombay (C) New Delhi (D) Calcutta
Ans: B
17. Who had visited India in the capacity of a Co-operative Consultant to the Planning Commission in 1957?
(A) Sir. Malcolm Darling (B) Dr. Ulkrik (C) Dr. William King (D) Lougi Luzzatti
Ans: A
18. Regional Rural Banks came into existence as per the recommendations of ————————— Committee.
(A) C.V. Nair (B) Sivaraman (C) Narsimhan (D) Mehtha
Ans: C
19. NABARD started functioning from
(A) January 1982 (B) April 1982 (C) July 1982 (D) September 1982
Ans: C
20. The shortcomings in the Act of 1904 was removed by another legislation known as
(A) Co-operative Societies Act of 1912. (B) The Model Co-operative Act
(C) Constitution Amendment Bill (D) None of’ these
Ans: A
21. The first Diary Co-operative Society in India was registered at
(A) Anand in Gujarat (B) Allahabad in Uttar Pradesh (C) Aurangabad in Maharashtra (D) Ahmedabad in Gujarat
Ans: B
22. ——————— recommended the adoption of Crop Loan system:
(A) The All India Rural Credit Survey Committee (B) The Planning Commission (C) National Co-operative Union (D) RBI
Ans: A
23. ————————— is the federation of central Co-operative banks in a state:
(A) District Co-operative Bank (B) Co-operative Union (C) Land Development Bank (D) State Co-operative Bank
Ans: D
24. Organisational structure followed by co-operatives in India:
(A) Decentralised (B) Centralised (C) Federal (D) None of these
Ans: C
25. ————————— has been playing an important role in the development of Co-operative Marketing in India:
(A) NAFED (B) MARKETFED (C) NCDC (D) NCMF
Ans: A
26. IFFCO First put up two fertilizer plants in the State of:
(A) U.P (B) Gujarat (C) Bihar (D) Maharashtra
Ans: B
27. ————— is an apex organization of Consumers’ Co-operatives in India.
(A) NCCF (B) NACF
(C) NCFI (D) NCUI
Ans: A
28. The National Co-operative Housing Federation of India was set up in the year :
(A) 1965 (B) 1970
(C) 1969 (D) 1966
Ans: C
29. VMNICOM was set up in the year 1967 at :
(A) Mumbai (B) Baroda (C) Pune (D) Ahmadabad
Ans: C
30. The final authority of a co-operative society shall be vested in the:
(A) Managing Committee (B) General Body
(C) Registrar (D) Secretary
Ans: B
31. The committee of a society is liable to call a Special General Body Meeting after getting a requisition either from :
(A) Registrar or 1/5 of total members
(B) Secretary or 1/5 of total members
(C) Registrar or 1/4 of total members
(D) President or 1/4 of total members
Ans: A
32. The quorum for a meeting of Committee shall be more than :
(A) 20% of the total number of members of that committee
(B) 30% of the total number of members of that committee
(C) 50% of the total number of members of that committee
(D) 25% of the total number of members of that committee
Ans: C
33. Who shall be the custodian of cash securities and other properties of the society?
(A) President (B) Committee
(C) Cashier (D) Secretary
Ans: D
34. Principal State Partnership Fund can be utilized for the purpose of:
(A) Directly purchasing shares in another society with limited liability
(B) Providing funds to a central society to purchase shares in another society
(C) To repay the amount to the Government
(D) All of the above
Ans: D
35. Every co-operative society shall transfer an amount not less than ————————— % of its net profit to the Reserve Fund:
(A) 10% (B) 15% (C) 20% (D) 25%
Ans: B
36. Every society with limited liability which are accepting deposits and not coming within the Banking Regulation Act shall maintain minimum liquid cover of 25% on :
(A) Total loans and advances (B) Net loans and advances (C) Total demand and time liabilities (D) Total liabilities
Ans: C
37. Audit fees is exempted from which of the following societies :
(A) Coir societies (B) Housing societies (C) Transport societies (D) Farming societies
Ans: D
38. Registrar shall issue an order of inquiry in a society:
(A) Registrar on his own motion (B) Receipt of inquiry report of the Vigilance Officer
(C) On receipt of application by majority of members of the committee (D) All of these
Ans: D
39. Any dispute arises in the affairs of a co-operative society shall be decided by:
(A) Co-operative Arbitration Court and Registrar (B) Registrar (C) Co-operative Arbitration Court (D) None of these
Ans: A
40. One of the following is not a reason for winding up of a society:
(A) Total number of’ members has been reduced to less than twenty five
(B) Society has not commenced working within five months of its registration
(C) Registrar received application for winding up from three-fourth of the members of the society
(D) Registrar after conducting an inquiry/inspection under section 65 or 66 is of the opinion that the society ought to be wound up
Ans: B
41. The liquidator shall complete the winding up proceedings within a period of ————————-- from the date of his appointment :
(A) 2 years (B) 3 years (C) 1 year (D) 2.5 years
Ans: B
42. A co-operative bank which has been affiliated with the Deposit Insurance and Credit Guarantee Corporation is called :
(A) insured co-operative bank
(B) Guaranteed co-operative bank
(C) Protected co-operative bank
(D) None of these
Ans: A
43. Statements to be prepared and submitted by co-operative society to the Registrar include:
(A) Receipt and Disbursement for the year (B) Profit and Loss Account (C) Balance Sheet (D) All of these
Ans: D
44. The term of office of the members of’ the general body of’ State Co-operative Union shall be ————————— years :
(A) 3 years (B) 4 years
(C) 5 years (D) No limit
Ans: C
45. SARFAESI ACT came into force in:
(A) 2000 (B) 2001
(C) 2002 (D) 2003
Ans: C
46. ————————— are the foundation stone of the grass root level co-operative credit structure in India :
(A) PACS (B) DCCB’s
(C) SCB’s (D) UCB’s
Ans: A
47. The executive and administrative functions of’ District Central Co-operative Banks are carried out by :
(A) Chairman (B) Vice Chairman
(C) Chief Executive Officer (D) Manager
Ans: C
48. The nodal agency at the state level for chnnelization of funds from RBI/ NABARD:
(A) SCB’s (B) DCCB’s
(C) UCB’s (D) PACS
Ans: A
49. Urban Co-operative Banks are controlled by :
(A) RBI
(B) Co-operative Registrar
(C) Both RBI and Co-operative Registrar
(D) None of these
Ans: C
50. Which Act lays down the law relating to payment of customer’s cheque by a bank and also protection available to a bank?
(A) Banking Regulation Act (B) Negotiable Instruments Act (C) Investor Protection Act (D) SEBI Act
Ans: B
(A) Sir. Malcolm Darling (B) Dr. Ulkrik (C) Dr. William King (D) Lougi Luzzatti
Ans: A
18. Regional Rural Banks came into existence as per the recommendations of ————————— Committee.
(A) C.V. Nair (B) Sivaraman (C) Narsimhan (D) Mehtha
Ans: C
19. NABARD started functioning from
(A) January 1982 (B) April 1982 (C) July 1982 (D) September 1982
Ans: C
20. The shortcomings in the Act of 1904 was removed by another legislation known as
(A) Co-operative Societies Act of 1912. (B) The Model Co-operative Act
(C) Constitution Amendment Bill (D) None of’ these
Ans: A
21. The first Diary Co-operative Society in India was registered at
(A) Anand in Gujarat (B) Allahabad in Uttar Pradesh (C) Aurangabad in Maharashtra (D) Ahmedabad in Gujarat
Ans: B
22. ——————— recommended the adoption of Crop Loan system:
(A) The All India Rural Credit Survey Committee (B) The Planning Commission (C) National Co-operative Union (D) RBI
Ans: A
23. ————————— is the federation of central Co-operative banks in a state:
(A) District Co-operative Bank (B) Co-operative Union (C) Land Development Bank (D) State Co-operative Bank
Ans: D
24. Organisational structure followed by co-operatives in India:
(A) Decentralised (B) Centralised (C) Federal (D) None of these
Ans: C
25. ————————— has been playing an important role in the development of Co-operative Marketing in India:
(A) NAFED (B) MARKETFED (C) NCDC (D) NCMF
Ans: A
26. IFFCO First put up two fertilizer plants in the State of:
(A) U.P (B) Gujarat (C) Bihar (D) Maharashtra
Ans: B
27. ————— is an apex organization of Consumers’ Co-operatives in India.
(A) NCCF (B) NACF
(C) NCFI (D) NCUI
Ans: A
28. The National Co-operative Housing Federation of India was set up in the year :
(A) 1965 (B) 1970
(C) 1969 (D) 1966
Ans: C
29. VMNICOM was set up in the year 1967 at :
(A) Mumbai (B) Baroda (C) Pune (D) Ahmadabad
Ans: C
30. The final authority of a co-operative society shall be vested in the:
(A) Managing Committee (B) General Body
(C) Registrar (D) Secretary
Ans: B
31. The committee of a society is liable to call a Special General Body Meeting after getting a requisition either from :
(A) Registrar or 1/5 of total members
(B) Secretary or 1/5 of total members
(C) Registrar or 1/4 of total members
(D) President or 1/4 of total members
Ans: A
32. The quorum for a meeting of Committee shall be more than :
(A) 20% of the total number of members of that committee
(B) 30% of the total number of members of that committee
(C) 50% of the total number of members of that committee
(D) 25% of the total number of members of that committee
Ans: C
33. Who shall be the custodian of cash securities and other properties of the society?
(A) President (B) Committee
(C) Cashier (D) Secretary
Ans: D
34. Principal State Partnership Fund can be utilized for the purpose of:
(A) Directly purchasing shares in another society with limited liability
(B) Providing funds to a central society to purchase shares in another society
(C) To repay the amount to the Government
(D) All of the above
Ans: D
35. Every co-operative society shall transfer an amount not less than ————————— % of its net profit to the Reserve Fund:
(A) 10% (B) 15% (C) 20% (D) 25%
Ans: B
36. Every society with limited liability which are accepting deposits and not coming within the Banking Regulation Act shall maintain minimum liquid cover of 25% on :
(A) Total loans and advances (B) Net loans and advances (C) Total demand and time liabilities (D) Total liabilities
Ans: C
37. Audit fees is exempted from which of the following societies :
(A) Coir societies (B) Housing societies (C) Transport societies (D) Farming societies
Ans: D
38. Registrar shall issue an order of inquiry in a society:
(A) Registrar on his own motion (B) Receipt of inquiry report of the Vigilance Officer
(C) On receipt of application by majority of members of the committee (D) All of these
Ans: D
39. Any dispute arises in the affairs of a co-operative society shall be decided by:
(A) Co-operative Arbitration Court and Registrar (B) Registrar (C) Co-operative Arbitration Court (D) None of these
Ans: A
40. One of the following is not a reason for winding up of a society:
(A) Total number of’ members has been reduced to less than twenty five
(B) Society has not commenced working within five months of its registration
(C) Registrar received application for winding up from three-fourth of the members of the society
(D) Registrar after conducting an inquiry/inspection under section 65 or 66 is of the opinion that the society ought to be wound up
Ans: B
41. The liquidator shall complete the winding up proceedings within a period of ————————-- from the date of his appointment :
(A) 2 years (B) 3 years (C) 1 year (D) 2.5 years
Ans: B
42. A co-operative bank which has been affiliated with the Deposit Insurance and Credit Guarantee Corporation is called :
(A) insured co-operative bank
(B) Guaranteed co-operative bank
(C) Protected co-operative bank
(D) None of these
Ans: A
43. Statements to be prepared and submitted by co-operative society to the Registrar include:
(A) Receipt and Disbursement for the year (B) Profit and Loss Account (C) Balance Sheet (D) All of these
Ans: D
44. The term of office of the members of’ the general body of’ State Co-operative Union shall be ————————— years :
(A) 3 years (B) 4 years
(C) 5 years (D) No limit
Ans: C
45. SARFAESI ACT came into force in:
(A) 2000 (B) 2001
(C) 2002 (D) 2003
Ans: C
46. ————————— are the foundation stone of the grass root level co-operative credit structure in India :
(A) PACS (B) DCCB’s
(C) SCB’s (D) UCB’s
Ans: A
47. The executive and administrative functions of’ District Central Co-operative Banks are carried out by :
(A) Chairman (B) Vice Chairman
(C) Chief Executive Officer (D) Manager
Ans: C
48. The nodal agency at the state level for chnnelization of funds from RBI/ NABARD:
(A) SCB’s (B) DCCB’s
(C) UCB’s (D) PACS
Ans: A
49. Urban Co-operative Banks are controlled by :
(A) RBI
(B) Co-operative Registrar
(C) Both RBI and Co-operative Registrar
(D) None of these
Ans: C
50. Which Act lays down the law relating to payment of customer’s cheque by a bank and also protection available to a bank?
(A) Banking Regulation Act (B) Negotiable Instruments Act (C) Investor Protection Act (D) SEBI Act
Ans: B
51. Capturing the essential required particulars from the paper’ cheque to form an electronic image is Called :
(A) Crossing of cheque (B) MICR cheque (C) Truncation of cheque (D) None of these
Ans: C
52. Which of the following grants protection to a collecting bank?
(A) Bank has in good faith and without negligence received payment for a customer in properly opened account
(B) Bank has collected the payment through clearing system
(C) Bank has collected the payment in a properly opened account
(D) Where the cheque deposited for collection was account payee and crossed
Ans: A
53. Which agency is in charge of’ planning and coordination of co-operative training programmes in the country?
(A) NCCT (B) NABARD (C) NICT (D) NOCT
Ans: A
54. The Bankers’ right to retain securities etc.. in respect of general balance due by their owner to the banker is called :
(A) Particular Lien (B) General Lien (C) Set- off (D) Appropriation
Ans: B
55. For Central or State Government, to file suit, the limitation period is ————————— years as per limitation Act.1963
(A) 3 years (B) 10 years (C) 20 years (D) 30 years
Ans: D
56. A term loan shall be classified as Non Performing. if interest and / or installment of principal of that loan remain overdue for a period of more than ————————-- days:
(A) 45 days (B) 90 days (C) 180 days (D) 365 days
Ans: B
57. Risks arise out of external and uncontrollable factors are called :
(A) Systematic risk (B) Unsystematic Risk (C) Default Risk (D) Business Risk
Ans: A
58. All urban co-operative banks are required to maintain stipulated level of :
(A) CRR only (B) SLR only (C) Both CRR & SLR (D) None of these
Ans: C
59. For what purpose the Treasury Bills are issued?
(A) For the short term requirements of the Government (B) For the capital requirements of’ RBI
(C) For the long term requirements of the Government (D) For the capital requirements oh RBI approved Financial Institutions
Ans: A
60. The rate at which RBI borrow money from banks is called :
(A) Coupon Rate (B) Repo Rate (C) Reverse Repo Rate (D) Floating Rate
Ans: C
61. ————————— involves vertical expansion of functions and responsibility of the job holder.
(A) Job Enlargement (B) Job Description (C) Job Enrichment (D) Job Analysis
Ans: C
62. One of the following is not a technique of De Jobbing :
(A) Pyramid Organisation (B) Flatter Organisation (C) Boundaryless Organisation (D) None of these
Ans: A
63. Employing a competent and experienced person already working with another reputed company in the same or different industry is called :
(A) Outsourcing (B) E-Recruitment (C) Referrals (D) Poaching
Ans: D
64. The practice of’ identifying. studying and building upon best practices in the industry or in the world is called :
(A) TQM (B) Benchmarking (C) Kaizen (D) Re-engineering
Ans: B
65. One of the following is not coming under On the job training :
(A) Mentoring (B) Vestibule Training
(C) Coaching (D) Position Rotation
Ans: B
66. A small group of people who voluntarily perform quality improvement activities at the work place is called :
(A) Quality Management System
(B) Quality Improvement System
(C) Total Quality Management
(D) Quality Circle
Ans: D
67. Who introduced the concept Management By Objective (MBO)?
(A) Elton Mayo (B) Henry Fayol
(C) Peter F Drucker (D) F.W Taylor
Ans: C
68. As per Herzberg’s Motivation — Hygiene Theory. One of’ the following is a hygiene factor :
(A) Salary
(B) Recognition
(C) Possibility of’ Growth
(D) Advancement
Ans: A
69. Prevention of’ Money Laundering Act passed in the year :
(A) 2004 (B) 2002
(C) 2006 (D) 2007
Ans: B
70. One of the following is not a Credit Rating Institution :
(A) CRISIL (B) ARCIL
(C) CARE (D) FITCH
Ans: B
(A) Crossing of cheque (B) MICR cheque (C) Truncation of cheque (D) None of these
Ans: C
52. Which of the following grants protection to a collecting bank?
(A) Bank has in good faith and without negligence received payment for a customer in properly opened account
(B) Bank has collected the payment through clearing system
(C) Bank has collected the payment in a properly opened account
(D) Where the cheque deposited for collection was account payee and crossed
Ans: A
53. Which agency is in charge of’ planning and coordination of co-operative training programmes in the country?
(A) NCCT (B) NABARD (C) NICT (D) NOCT
Ans: A
54. The Bankers’ right to retain securities etc.. in respect of general balance due by their owner to the banker is called :
(A) Particular Lien (B) General Lien (C) Set- off (D) Appropriation
Ans: B
55. For Central or State Government, to file suit, the limitation period is ————————— years as per limitation Act.1963
(A) 3 years (B) 10 years (C) 20 years (D) 30 years
Ans: D
56. A term loan shall be classified as Non Performing. if interest and / or installment of principal of that loan remain overdue for a period of more than ————————-- days:
(A) 45 days (B) 90 days (C) 180 days (D) 365 days
Ans: B
57. Risks arise out of external and uncontrollable factors are called :
(A) Systematic risk (B) Unsystematic Risk (C) Default Risk (D) Business Risk
Ans: A
58. All urban co-operative banks are required to maintain stipulated level of :
(A) CRR only (B) SLR only (C) Both CRR & SLR (D) None of these
Ans: C
59. For what purpose the Treasury Bills are issued?
(A) For the short term requirements of the Government (B) For the capital requirements of’ RBI
(C) For the long term requirements of the Government (D) For the capital requirements oh RBI approved Financial Institutions
Ans: A
60. The rate at which RBI borrow money from banks is called :
(A) Coupon Rate (B) Repo Rate (C) Reverse Repo Rate (D) Floating Rate
Ans: C
61. ————————— involves vertical expansion of functions and responsibility of the job holder.
(A) Job Enlargement (B) Job Description (C) Job Enrichment (D) Job Analysis
Ans: C
62. One of the following is not a technique of De Jobbing :
(A) Pyramid Organisation (B) Flatter Organisation (C) Boundaryless Organisation (D) None of these
Ans: A
63. Employing a competent and experienced person already working with another reputed company in the same or different industry is called :
(A) Outsourcing (B) E-Recruitment (C) Referrals (D) Poaching
Ans: D
64. The practice of’ identifying. studying and building upon best practices in the industry or in the world is called :
(A) TQM (B) Benchmarking (C) Kaizen (D) Re-engineering
Ans: B
65. One of the following is not coming under On the job training :
(A) Mentoring (B) Vestibule Training
(C) Coaching (D) Position Rotation
Ans: B
66. A small group of people who voluntarily perform quality improvement activities at the work place is called :
(A) Quality Management System
(B) Quality Improvement System
(C) Total Quality Management
(D) Quality Circle
Ans: D
67. Who introduced the concept Management By Objective (MBO)?
(A) Elton Mayo (B) Henry Fayol
(C) Peter F Drucker (D) F.W Taylor
Ans: C
68. As per Herzberg’s Motivation — Hygiene Theory. One of’ the following is a hygiene factor :
(A) Salary
(B) Recognition
(C) Possibility of’ Growth
(D) Advancement
Ans: A
69. Prevention of’ Money Laundering Act passed in the year :
(A) 2004 (B) 2002
(C) 2006 (D) 2007
Ans: B
70. One of the following is not a Credit Rating Institution :
(A) CRISIL (B) ARCIL
(C) CARE (D) FITCH
Ans: B
71. The appropriate objective of an enterprise is :
(A) Maximization of production (B) Maximization of sales
(C) Maximization of owner’s wealth (D) Maximization of profit
Ans: C
72. The reciprocal of the earnings yield is called the ————————— ratio.
(A) Dividend yield (B) Price - earning
(C) Earnings per share (D) Dividend per share
Ans: B
73. Net working capital means :
(A) Excess of current liabilities over current assets (B) Total of current assets
(C) Excess of current assets over current liabilities (D) Excess of total assets over total liabilities
Ans: C
74. Capitalization of undistributed profit is called :
(A) Rights shares (B) Sweat equity shares (C) Preferential shares (D) Bonus shares
Ans: D
75. The use of debt capital along with the owners’ equity in the capital structure is described as :
(A) Financial leverage (B) Operating leverage (C) Fair capitalization (D) Optimum capital structure
Ans: A
76. The rate of return foregone on the next best alternative investment opportunity of comparable risk is termed as :
(A) Opportunity cost (B) Specific cost (C) Return on equity (D) Weighted cost
Ans: A
77. The discount rate which equates the present values of an investment’s cash inflows and out flows is called :
(A) Net Present Value (B) Average Rate of Return (C) Profitability Index (D) Internal Rate of’ Return
Ans: D
78. ————————— indicates the level of sales at which costs and revenues are in equilibrium.
(A) Margin of Safety (B) Contribution Ratio (C) Break Even Point (D) All of these
Ans: C
79. Agency costs increases with the increase of ————————— in the capital mix.
(A) Equity (B) Debt (C) Retained earnings (D) None of these
Ans: B
80. Unsecured promissory notes issued by better rated firms to raise short term funds is called :
(A) Secured Premium Note (B) Zero Coupon Bond (C) Commercial Paper (D) Letter of Credit
Ans: C
81. The parameters that invite corrective action from the RBI does not include :
(A) CRAR (B) Profitability Ratio (C) Net NPA (D) Return on Assets
Ans: B
82. The Insolvency and Bankruptcy Code came into force in the year :
(A) 2013 (B) 2014 (C) 2016 (D) 2018
Ans: C
83. One of the following is not true in the case of Payment Banks :
(A) Payment banks can receive deposits
(B) Payment banks can lend money
(C) Payment banks have to invest 75% of its demand deposits in G Sec and T Bills
(D) Minimum paid up capital of Payment banks is 100 crores
Ans: B
84. The concept of Small Finance Banks was given by ————————— Committee on financial inclusion :
(A) Nachiket mor (B) Raghuram Rajan (C) D.Subbarao (D) Subhash Chandra Bose
Ans: A
85. Delphi method of estimating future demand for a product or service is associated with :
(A) Econometric analysis (B) Expert Opinion method (C) Market Test method (D) Sales Force opinion
Ans: B
86. Economic growth potential that can result from shift in population’s age structure is called :
(A) Population Dividend (B) Demographic Surplus (C) Demographic Dividend (D) New Generation Reward
Ans: C
87. Which of the following is an example for product attribute?
(A) Product Design (B) Product Packaging (C) Brand (D) Brand Equity
Ans: A
88. Who introduced the concept Bottom of the Pyramid?
(A) Philip kotler (B) Michael porter (C) S.L. Hart (D) C.K.Prahalad
Ans: D
89. The practice of selling two or more separate products together for a single, lower price than what the items would cost if sold separately is called :
(A) Price Bundling (B) Price Lining (C) Reference Pricing (D) Competition Pricing
Ans: A
90. Which of the following is not the stage of new product development?
(A) Idea Generation (B) Business Analysis (C) Test Marketing (D) Market Segmentation
Ans: D
91. Consumers who like to avoid change and rely on traditional products until they are no longer available are called :
(A) Late majority (B) Laggards (C) Lame duck (D) Late comers
Ans: B
92. A firm‘s practice of setting a very low price for one or more of its products with the intent to drive its competition out of business is called :
(A) Price Skimming (B) Predatory pricing (C) Cost pricing (D) Price discrimination
Ans: B
93. In which stage of product life cycle. the company takes decision whether to maintain. harvest or drop the product?
(A) Pioneering (B) Growth (C) Maturity (D) Decline
Ans: D
94. The objective of Test Marketing is to :
(A) Test consumers with the product (B) Introduce product in open market
(C) Predict product’s performance and its future (D) Test the market with consumers
Ans: C
95. Design products on a computer and then produce rough models to show potential consumers for their reactions is called :
(A) Rapid prototyping (B) Physical prototyping (C) Product imaging (D) None of these
Ans: A
96. How many banks merged with SBI in the year 2017?
(A) 4 (B) 5 (C) 6 (D) 7
Ans: C
97. Time norm for disposal of loan application below Rs. 25.000 under priority sector is :
(A) 15 days (B) 30 days (C) 45 days (D) None of these
Ans: A
(A) Maximization of production (B) Maximization of sales
(C) Maximization of owner’s wealth (D) Maximization of profit
Ans: C
72. The reciprocal of the earnings yield is called the ————————— ratio.
(A) Dividend yield (B) Price - earning
(C) Earnings per share (D) Dividend per share
Ans: B
73. Net working capital means :
(A) Excess of current liabilities over current assets (B) Total of current assets
(C) Excess of current assets over current liabilities (D) Excess of total assets over total liabilities
Ans: C
74. Capitalization of undistributed profit is called :
(A) Rights shares (B) Sweat equity shares (C) Preferential shares (D) Bonus shares
Ans: D
75. The use of debt capital along with the owners’ equity in the capital structure is described as :
(A) Financial leverage (B) Operating leverage (C) Fair capitalization (D) Optimum capital structure
Ans: A
76. The rate of return foregone on the next best alternative investment opportunity of comparable risk is termed as :
(A) Opportunity cost (B) Specific cost (C) Return on equity (D) Weighted cost
Ans: A
77. The discount rate which equates the present values of an investment’s cash inflows and out flows is called :
(A) Net Present Value (B) Average Rate of Return (C) Profitability Index (D) Internal Rate of’ Return
Ans: D
78. ————————— indicates the level of sales at which costs and revenues are in equilibrium.
(A) Margin of Safety (B) Contribution Ratio (C) Break Even Point (D) All of these
Ans: C
79. Agency costs increases with the increase of ————————— in the capital mix.
(A) Equity (B) Debt (C) Retained earnings (D) None of these
Ans: B
80. Unsecured promissory notes issued by better rated firms to raise short term funds is called :
(A) Secured Premium Note (B) Zero Coupon Bond (C) Commercial Paper (D) Letter of Credit
Ans: C
81. The parameters that invite corrective action from the RBI does not include :
(A) CRAR (B) Profitability Ratio (C) Net NPA (D) Return on Assets
Ans: B
82. The Insolvency and Bankruptcy Code came into force in the year :
(A) 2013 (B) 2014 (C) 2016 (D) 2018
Ans: C
83. One of the following is not true in the case of Payment Banks :
(A) Payment banks can receive deposits
(B) Payment banks can lend money
(C) Payment banks have to invest 75% of its demand deposits in G Sec and T Bills
(D) Minimum paid up capital of Payment banks is 100 crores
Ans: B
84. The concept of Small Finance Banks was given by ————————— Committee on financial inclusion :
(A) Nachiket mor (B) Raghuram Rajan (C) D.Subbarao (D) Subhash Chandra Bose
Ans: A
85. Delphi method of estimating future demand for a product or service is associated with :
(A) Econometric analysis (B) Expert Opinion method (C) Market Test method (D) Sales Force opinion
Ans: B
86. Economic growth potential that can result from shift in population’s age structure is called :
(A) Population Dividend (B) Demographic Surplus (C) Demographic Dividend (D) New Generation Reward
Ans: C
87. Which of the following is an example for product attribute?
(A) Product Design (B) Product Packaging (C) Brand (D) Brand Equity
Ans: A
88. Who introduced the concept Bottom of the Pyramid?
(A) Philip kotler (B) Michael porter (C) S.L. Hart (D) C.K.Prahalad
Ans: D
89. The practice of selling two or more separate products together for a single, lower price than what the items would cost if sold separately is called :
(A) Price Bundling (B) Price Lining (C) Reference Pricing (D) Competition Pricing
Ans: A
90. Which of the following is not the stage of new product development?
(A) Idea Generation (B) Business Analysis (C) Test Marketing (D) Market Segmentation
Ans: D
91. Consumers who like to avoid change and rely on traditional products until they are no longer available are called :
(A) Late majority (B) Laggards (C) Lame duck (D) Late comers
Ans: B
92. A firm‘s practice of setting a very low price for one or more of its products with the intent to drive its competition out of business is called :
(A) Price Skimming (B) Predatory pricing (C) Cost pricing (D) Price discrimination
Ans: B
93. In which stage of product life cycle. the company takes decision whether to maintain. harvest or drop the product?
(A) Pioneering (B) Growth (C) Maturity (D) Decline
Ans: D
94. The objective of Test Marketing is to :
(A) Test consumers with the product (B) Introduce product in open market
(C) Predict product’s performance and its future (D) Test the market with consumers
Ans: C
95. Design products on a computer and then produce rough models to show potential consumers for their reactions is called :
(A) Rapid prototyping (B) Physical prototyping (C) Product imaging (D) None of these
Ans: A
96. How many banks merged with SBI in the year 2017?
(A) 4 (B) 5 (C) 6 (D) 7
Ans: C
97. Time norm for disposal of loan application below Rs. 25.000 under priority sector is :
(A) 15 days (B) 30 days (C) 45 days (D) None of these
Ans: A