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Quiz 581: GK Questions for RBI Grade B Examination

1. Consider the following statements:
  1. There is almost no speculation in the G-sec market
  2. The Investors in the G-Sec Market are predominantly the institutions

Which among the above statements is / are correct?

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Nether 1 nor 2 is correct

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Correct Answer: C [Both 1 & 2 are correct]
2.  The Arabic word “Sukuk” is best placed in which among the following?
[A] A tenet of Islam
[B] A Festival of Islam
[C] A term related to Islamic Banking
[D] A term related to Saudi Politics

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Correct Answer: C [A term related to Islamic Banking]
Notes:
In Arabic Sukuk means a check or financial certificate. It is the Islamic bond. Islamic bonds, also known as sukuk, are asset-based securities that pay a profit rate to investors to comply with Shariah`s prohibition of interest and speculation.
3.  Consider the following statement:
  1. The Tiny units in industries was defined for the first time in Industrial Policy Statement 1977
  2. There was a complete NO to the foreign investment in the Industrial Policy Statement 1977

Which among the above statements is/ are correct?

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Neither 1 nor 2 is correct

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Correct Answer: A [Only 1 is correct]
Notes:
Industrial Policy Statement 1977 was announced by the Janta Government. For the first time, this statement defined a `tiny unit` as a unit with investment in machinery and equipment up to Rs. 1 Lakh and situated in towns or villages with a population of less than 50,000 (as per 1971 census). The second statement is not correct because, In this statement, the foreign investment in the `unnecessary areas` means those which had not role to play in development of the country, was prohibited and this was a complete NO to the foreign investment. This was the time when George Fernandes, kicked the Coca Cola and IBM out of India.
4. Consider the following:
  1. Banking Regulation Act
  2. Insurance Act
  3. Securities Contract Regulation Act

Which among the following presents a correct set of years in which the above acts were legislated?

[A] 1949, 1958, 1992
[B] 1949, 1938, 1992
[C] 1949, 1938, 1956
[D] 1938, 1948, 1959

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Correct Answer: C [1949, 1938, 1956]
Notes:
Insurance Act was enacted in 1938 while the Banking Regulation Act was enacted in 1949.The Securities Contract Regulation Act 1956 is another old legislation enacted at a time when derivatives were unknown and without an independent market regulator; which had to wait till 1992.
5. Which among the following is the most spoken mother tongue in the European Union?
[A] English
[B] French
[C] German
[D] Spanish

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Correct Answer: C [German]
6. Consider the following statements in context with the Cash Management Bills:
  1. Cash Management Bills are a kind of short term money market instruments with maturity less than 91 days
  2. Cash Management Bills are issued on discount
  3. Cash Management Bills are introduced only by Central Government

Which among the above statements is/ are correct?

[A] Only 1 is correct
[B] Only 1 & 2 are correct
[C] all are correct
[D] Only 2 & 3 are correct

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Correct Answer: C [all are correct]
Notes:
The Government of India, in consultation with the Reserve Bank of India, finalized and introduced a new short-term instrument, known as Cash Management Bills, to meet the temporary cash flow mismatches of the Government. The Cash Management Bills are non-standard, discounted instruments issued for maturities less than 91 days and could be issued as and when need arises
7. Consider the following statements:
  1. Area between 200 mts to 500 mts in Coastal Regulation Zone – III has been declared as No Development Zone (NDZ).
  2. Some activities are permissible in this zone after obtaining necessary approvals from concerned authorities

Which among the above statements is/ are correct?

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Neither 1 nor 2 is correct

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Correct Answer: C [Both 1 & 2 are correct]
8. Consider the following statements:
  1. MG NREGA is the first law internationally, that guarantees wage employment
  2. MG NREGA act mandates 33% participation for women
  3. Pronab Sen Committee has been constituted for developing an index for fixing Mahatma Gandhi NREGA wage rates and its periodic revisions.

Which among the above statements is/ are correct?

[A] Only 1 is correct
[B] 1 & 2 are correct
[C] All are correct
[D] 2 & 3 are correct

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Correct Answer: C [All are correct]
9. Tendulkar Committee report has revealed that in 2004-05, India’s poverty which was measured 27% at that time is actually increased more than 10% and actual poverty was 37% . Which among the following was the reason behind these two conflicting measures of poverty in India?
[A] There was a discrepancy in the data’s collected at that time
[B] The new poverty line measures poverty on a wider access to commodity and services like health and education and not calories
[C] The calories definition of poverty has been changed by the world Bank
[D] The government at that time misled the public on by showing the wrong figures

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Correct Answer: B [The new poverty line measures poverty on a wider access to commodity and services like health and education and not calories]
10. The investment in Plant & Machinery up to which among the following amounts in India is called a Tiny Unit in India?
[A] Rs. 5 Lakh
[B] Rs. 10 Lakh
[C] Rs. 15 Lakh
[D] Rs. 25 Lakh

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Correct Answer: D [Rs. 25 Lakh]
Notes:
Please note that today, the units where investment in Plant & Machinery is up to Rs. 25 lakh is called a `Tiny Enterprise`, irrespective of the location of the unit. This change was based upon the recommendation of Abid Hussain Committee.