General and Financial Awareness Test - Central Bank of India PO 2010 - Part 1

1. Equity schemes managed strong NAV gains, which boost their assets’ was a news in some financial newspapers. What is the full form of the term NAV as used in above head lines ?
Nil Accounting Variation  Net Accounting Venture  Net Asset Value  New Asset Venture  None of these
 

2. As per reports published in various news papers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 per cent-
Of the total investments they made collectively during the year  More than their profits during previous year  Of the total capital of the company  Less than the total expenditure of the companies  None of these
 

3. As per the news published in various newspapers Pakistan has imposed 15 per cent regulatory duty on exports of cotton yarn. Why countries are required to impose regulatory duties on exports of some of their commodities while in the eyes of the layman more exports means more foreign exchange and more revenue for the Govt. ?
1. It is done to control the exports of a commodity as it may be needed more in local markets than in foreign countries.
2. It is done to control the general inflation in the country as the inordinate exports of various commodities create imbalance and also cost push inflation.
3. It is a good short time measure to collect more revenue from the exports of the commodity which is in high demand in overseas markets.
Only 1  Only 2  Only 3  All 1, 2 and 3  None of these
 

4. As per the reports published in some major newspapers ‘ADAG companies’ made good profits during the year. ADAG companies are popularly known as-
Companies owned by Tata Group  Aditya Birla Companies  Reliance Companies  Companies owned by Aptech  None of these
 

5. ONGC-Mittal Energy finds hydrocarbons in two blocks OPL-279 & OPL-285 in Nigerian sea was the news in some major newspapers. what is the full form of the term OPL as used in the above head line ?
Oil Prospecting License  Ownership and Partnership Lease  Overseas Private Line  ONGC Petroleum Ltd.  None of these
 

6. “Mutual Funds reported exceptional performance in 2009-10” was the news in major financial newspapers recently. What is a mutual fund ?
1. A type of collective investment scheme that pools money from many investors and invest it in stocks, bonds or other money market instruments.
2. It is a subsidiary of a bank or financial company created specially to ralse money to be invested in a particular industry i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else.
3. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants etc. the common pool is known as Mutual Fund.
Only 1  Only 2  Only 3  All 1, 2 and 3  None of these
 

7. As we all know the Bank Rate at present is fixed at 6%. What does it mean in context to the banking operations ?
No bank will be able to give loan to any party on a rate lower than the Bank Rate  Bank should give loan to their priority sector customers/borrowers at the rate of 6% only. They cannot charge less or more than this from their priority sector clients  Banks are required to invest 6% of their total capital on financial inclusion and inclusive banking operations  Banks will be required to give 6% of their total deposits to the Govt. of India for meeting its Balance of Trade requirements  None of these
 

8. As per the reports in various newspapers many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organizations/agencies issue the licence for the same ?
Securities and Exchange Board of India (SEBI)  Indian Institute of Banking and Finance (IIBF)  Indian Bank Association  Registrar of Companies  None of these
 

9. We very frequently read about Europe’s Sovereign-debt crisis these day. Which of the following statement/s is/are true about the same ?
1. In early 2010 the Euro crisis developed in some countries like Greece, Spain and Portugal.
2. This created a credit default swap between the countries of the European Union.
3. SAARC countries have offered some assistance to some of severely affected countries like Portugal, Spain and Greece.
Only 1  Only 2  Only 1 and 2  All 1, 2 and 3  None of these
 

10. As we all know the RBI has raised the Cash Reserve Ratio (CRR) by 25 bps in April 2010. What action banks will have to take to implement the same ?
1. They will have to deposit some more money with the RBI as a reserved money.
2. Banks will be required to give some more loan to projects of the priority sector.
3. Banks will be required to give loan equivalent to the CRR to the Govt. of India for its day to day expenditure as and when required.
Only 1  Only 2  Only 1 and 2  All 1, 2 and 3  None of these
 

Part I        Part II        Part III