FINANCIAL AWARENESS (SBI MANAGEMENT EXECUTIVE EXAM, 23-02-2014 – Pravious year paper)

1

Financial awareness  ||  Reasoning  ||  Data analysis and interpretation  ||  English  

FINANCIAL AWARENESS

 

  1. In order to sell mutual fund efficiently, an agent
    (1) Needs to make inflated assurance before the customer
    (2) Need not Pass the exam for selling the products
    (3) Needs to have proper license
    (4) Both 1 and 2
    (5) All of the above

    Show Answer

    Solution:3
  2. Which of the following correctly explains credit intermediation?
    (1) Banks borrow and lend back-to-back on their own account as middle men
    (2) Banks lend money to ordinary commercial and personal borrowers
    (3) Banks borrow more on demand debt and short term debt, but provide more long term loans
    (4) Banks act as both collection and paying agents for customers
    (5) Banks give out a loan in a fractional-reserve banking system

    Show Answer

    Solution:1
  3. When computing NAV of fund, SEBI requires accrual of major expenses to be accounted
    (1) Quarterly
    (2) Annually
    (3) Half-yearly
    (4) On a day-to-day basis
    (5) When actually paid

    Show Answer

    Solution:4
  4. Which institution of the Government of India provides Export Credit Insurance?
    (1) EPFS
    (2) SEBI
    (3) RBI
    (4) NABARD
    (5) ECGC

    Show Answer

    Solution:5
  5. Which of the following is not correct regarding Bond Market?
    (1) It is a financial market where participants can issue new debt
    (2) It is known as the primary market
    (3) It aims to provide a mechanism for long term funding of public and private expenditures
    (4) It is often used to indicate changes in interest rates or the shape of the yield curve
    (5) It usually refer to the private companies’ bond market

    Show Answer

    Solution:5
  6. In the Budget 2013-14, HUFs, firms and entities who admitted to a taxable income exceeding 1 crore per year, came as many as ………….. persons.
    (1) 18,500
    (2) 33,000
    (3) 42,800
    (4) 51,700
    (5) 60,000

    Show Answer

    Solution:3
  7. In the case of Mutual Funds, Excess distribution expenses are to be borne by the
    (1) AMC
    (2) Unit holders
    (3) SEBI
    (4) AMFI
    (5) All of these

    Show Answer

    Solution:1
  8. The value of goods and services in terms of money is
    (1) M1
    (2) NNP
    (3) GDP
    (4) PPP
    (5) M3

    Show Answer

    Solution:3

  9. Which of the following is correct regarding dematerialization?
    (1) It is the process by which an investor can get physical ‘certificates converted into electronic form
    (2) The investors can dematerialize only those share certificates that are already registered in their name
    (3) The electronic certificates are maintained in an account with the Depository Participant
    (4) Both 1 and 3
    (5) All of the above

    Show Answer

    Solution:5
  10. The social aspect of marketing ensures
    (1) Social good
    (2) Delivery of effective and efficient social change programs
    (3) Customer engagement
    (4) All of these
    (5) Both 1 and 2

    Show Answer

    Solution:4
  11. Which of the following is the “name, term, design, symbol, or any other feature that is used to identify a good?
    (I) Logo
    (2) Brand
    (3) Corporate identity
    (4) Stationery goods
    (5) All of these

    Show Answer

    Solution:2
  12. With effect from April 1, 2010 payment of interest on savings bank accounts by scheduled commercial banks was announced to be calculated on a
    (1) Weekly product basis
    (2) Daily product basis
    (3) Fortnightly product basis
    (4) Monthly product basis
    (5) Hourly product basis

    Show Answer

    Solution:2
  13. Which of the following is not correct regarding Product Mix?
    (1) It is the combination of products offered for sale by a retail outlet
    (2) It takes into account both the variety and quantity of goods
    (3) It is used to attract a certain demographic of shoppers to the store
    (4) It is a number of products grouped together based on similar characteristics
    (5) It is more than just inventory

    Show Answer

    Solution:4
  14. Shareholders purchase and sell a fund at the fund’s net asset value (NAV), which is calculated daily. NAV is the price used for all Mutual fund share transactions which include
    (1) New purchases
    (2) Sales (redemptions)
    (3) Exchanges from one fund to another within the same fund family
    (4) Both 1 and 2
    (5) All of these

    Show Answer

    Solution:5
  15. Which of the following Derivatives Contract gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period?
    (1) Option contracts
    (2) Future contracts
    (3) Swap contracts
    (4) Forward contracts
    (5) Hedge contracts

    Show Answer

    Solution:1
  16. The Reserve Bank of India (RBI) has proposed a four-tier banking structure as opposed to the existing two-tier model in order to enhance competition and finance higher growth in the country. Which of the following will not come under the third tier of the proposed system?
    (1) Old private sector banks
    (2) Regional rural banks
    (3) Multi-state urban cooperative banks
    (4) Branches of foreign banks in India
    (5) None of these

    Show Answer

    Solution:4
  17. Mutual Fund Agents are compensated through
    (1) Salaries
    (2) Commissions
    (3) An annual fee
    (4) Not in cash but in kind
    (5) Any of these depending upon his/her quarterly performance

    Show Answer

    Solution:2
  18. Which of the following is not correct regarding FSLRC?
    (1) It reviews, simplifies and rewrites the legislations affecting the financial markets in India
    (2) It evolves a common set of principles for governance of financial sector regulatory institutions
    (3) It streamlines the regulatory architecture of financial markets
    (4) It was formed in 2013
    (5) None of these

    Show Answer

    Solution:4
  19. All records of an individual’s payments pertaining to loans and credit cards are submitted to Credit Information Bureau (India) by member banks and credit institutions, on a
    (1) Daily basis
    (2) Weekly basis
    (3) Fortnightly basis
    (4) Monthly basis
    (5) Quarterly basis

    Show Answer

    Solution:4
  20. Investments made by a mutual fund on behalf of investors are accounted as
    (1) Assets
    (2) Liabilities
    (3) Capital
    (4) Hedge Fund
    (5) Collateral

    Show Answer

    Solution:1
  21. The advertisement of life insurance must not have which of the following terms?
    (1) Investment
    (2) Investment plan
    (3) Expansion plan
    (4) Retirement plan
    (5) All of these

    Show Answer

    Solution:5
  22. A life insurance policy can only be made paid up if what particular policy feature exists?
    (1) Indexing contribution
    (2) Nomination facility
    (3) Rider benefits
    (4) Savings element
    (5) All of these

    Show Answer

    Solution:4
  23. VCES stands for:
    (1) Voluntary Compliance Encouragement Scheme
    (2) Value of Customer’s Estimated Securities
    (3) Voluntary Customer Engagement Services
    (4) Voluntary Compulsory Employment Scheme
    (5) None of these

    Show Answer

    Solution:1
  24. A Mutual Fund’s NAV calculated on a day is known as
    (1) Asset value per Fund
    (2) Price value per share
    (3) Asset value per stock
    (4) Price value per Fund
    (5) Net asset price

    Show Answer

    Solution:2
  25. Into which of the following can FCEB (Foreign Currency Exchange Bond) be exchanged?
    (1) Shares of Issuing company
    (2) A foreign country
    (3) Debt instruments
    (4) Equity shares of Offered Company
    (5) Gilt-edged securities

    Show Answer

    Solution:4
  26. NABARD stands for
    (1) National Association for Building Asset Reconstruction Department
    (2) National Bank for Agriculture and Rural Development
    (3) National Agency of Banking Regulatory Directives
    (4) National Asset Building and Reconstruction Department
    (5) None of these

    Show Answer

    Solution:2
  27. An insurance policy qualifies as micro-insurance policy if the benefits don’t exceed
    (1) Rs. 10,000
    (2) Rs. 25,000
    (3) Rs 50,000
    (4) Rs. 1 lakh
    (5) Rs. 2 lakh

    Show Answer

    Solution:3
  28. Base Rate of loans are
    (1) Set by the Reserve Bank of India
    (2) Fixed by individual banks
    (3) Applicable to all new loans after July 2010
    (4) Both 1 and 2
    (5) Both 2 and 3

    Show Answer

    Solution:5
  29. The main reason why a life insurance proposal form often asks for the proposer’s height is to enable a reasonable comparison with the proposer’s
    (1) Age
    (2) Gender
    (3) Occupation
    (4) Weight
    (5) None of these

    Show Answer

    Solution:4
  30. In a mutual fund, investors’ subscriptions are accounted for as
    (1) Liabilities
    (2) Deposits
    (3) Unit Capital
    (4) Assets
    (5) None of these

    Show Answer

    Solution:3
  31. What is the term for the conversion of existing assets or future cash flows into marketable securities?
    (1) Dematerialization
    (2) Securitization
    (3) Underwriting
    (4) Monetization
    (5) Hedging

    Show Answer

    Solution:2
  32. Which of the following does not correctly explain Mutual Fund?
    (1) It is a collective investment scheme
    (2) It is regulated and sold to the general public
    (3) It is managed by an Asset Management Company
    (4) It is a depository financial intermediary
    (5) None of these

    Show Answer

    Solution:4
  33. Which of the following is an unsecured money market instrument?
    (1) Treasury Bills
    (2) Certificates of Deposit
    (3) Commercial Paper
    (4) Bankers’ Acceptances
    (5) All of these

    Show Answer

    Solution:3
  34. According to a recent Government policy, companies have been mandated to spend 2 percent of their average net profit for past three years on fulfilling
    (1) Financial Inclusion
    (2) Millennium Development Goals
    (3) KYC norms
    (4) Corporate Social Responsibilities
    (5) Steps against money laundering

    Show Answer

    Solution:4
  35. What does MSF stand for?
    (I) Mutual Secure Finance
    (2) Marginal Standing Facility
    (3) Minimum Structured Finance
    (4) Material Securitized Fund
    (5) Minimum Social Fund

    Show Answer

    Solution:2
  36. What is the term when a seller tries to sell the same good at different prices?
    ( 1) Price Differential
    (2) Dumping
    (3) Price Discrimination
    (4) Bullying
    (5) None of these

    Show Answer

    Solution:3
  37. Which of the following does not constitute customer identification process in the banking sector?
    (1) confirming the date of birth from an official document
    (2) confirming the permanent address
    (3) contacting the customer by telephone, by letter or by email to confirm the information supplied after an account has been opened
    (4) confirming the marital status of the customer
    (5) confirming the validity of the official documentation provided through certification

    Show Answer

    Solution:4
  38. Which of the following explains the sound marketing of products?
    (1) 3 Rs
    (2) 4 Ps
    (3) 3 Cs
    (4) 2 Ms
    (5) 4 Ss

    Show Answer

    Solution:2
  39. What is the term for fixing high price for new product?
    (1) Decoy Pricing
    (2) Skimming
    (3) Freernium
    (4) Absorption Pricing
    (5) Odd Pricing

    Show Answer

    Solution:2
  40. Which price index is a measure of the average change over time in the prices?
    (1) CPI
    (2) WPI
    (3) PPI
    (4) Both 1 and 2
    (5) All of these

    Show Answer

    Solution:1
  41. A micro enterprise is defined as an enterprise engaged in the manufacture or production of goods pertaining to any industry where the investment in plant and machinery does not exceed
    (1) Rs 5 lakh
    (2) Rs. 10 lakh
    (3) Rs. 25 lakh
    (4) Rs. 50 lakh
    (5) Rs. 1 crore

    Show Answer

    Solution:3
  42.  A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently the insurer can only decline this risk if the
    (1) Customer submits a second quotation request.
    (2) Insurer increases its underlying premium rates.
    (3) Market place experiences a significant downturn.
    (4) Material facts change
    (5) None of these

    Show Answer

    Solution:4
  43. What does SEBI stand for?
    (1) Securities and Exchange Board of India
    (2) Service and Employment Building of India
    (3) Securities Exchange Board of India
    (4) Service Estimated by Banks in India
    (5) None of these

    Show Answer

    Solution:1
  44. BSDA stands for
    (1) Basic Securities Demat Account
    (2) Bombay Soft Drinks Association
    (3) Basic Services Demat Account
    (4) Basic Services Development Authority
    (5) None of these

    Show Answer

    Solution:3
  45. Which of the following examines the current monetary policy of India?
    (1) National Development Council
    (2) Planning Commission
    (3) Reserve Bank of India ‘
    (4) Ministry of Finance, Government of India
    (5) SEBI

    Show Answer

    Solution:3
  46. Making, issuing, or circulating any written or oral statement that misrepresents the benefits, conditions, or terms of any insurance policy, or transaction is an example of:
    (1) Twisting
    (2) Unfair
    (3) Misrepresentation
    (4) Concealment
    (5) All of these

    Show Answer

    Solution:3
  47. Under whom has the Reserve Bank of India set up an expert committee to examine the current monetary policy framework of RBI and recommend what needs to be done to revise and strengthen it?
    (1) P.J. Nayak
    (2) Urjit Patel
    (3) J.P. Morgan
    (4) Chetan Ghate
    (5) Sajid Chenoy

    Show Answer

    Solution:2
  48. An individual has secured a $12,000 loan from the bank to purchase a boat, which is scheduled for repayment in monthly installments over 48 months. Which life insurance would protect the lender should the borrower die prior to retiring the debt?
    (1) Level Term
    (2) Enhanced Whole Life
    (3) Modified Premium Life
    (4) Decreasing Term
    (5) None of these

    Show Answer

    Solution:4
  49. Which of the following recently launched a new health scheme `Stri Swasthya Suraksha Yojana for women’?
    (1) CII
    (2) NDMC
    (3) SEBI
    (4) IRDA
    (5) NABARD

    Show Answer

    Solution:2
  50. Where was the Third BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Summit held?
    (1) India
    (2) Sri Lanka
    (3) Bangladesh
    (4) Myanmar
    (5) Indonesia

    Show Answer

    Solution:4

Leave A Reply

Your email address will not be published.

1 Comment

  1. Kourtney says

    That’s not just the best anwsre. It’s the bestest answer!

error: Disabled by Admin!!!