General Socio-Economics and Banking Awareness for Bank PO exams

General Socio-Economics and Banking Awareness for Bank PO exams

This is the solved paper of Bank of Baroda PO 2011 exam of General Socio-Economics and Banking Awareness. These questions are also helpful for other Bank POs exam as well.

1. As per the reports published in various newspapers, Non­Performing Assets of the banks have increased a little during 2009-10. What does it indicate about the performance of the banks during that period?

1. Banks have not earned good profit during the period.

2. Banks had given some loans which became bad loans.

3. Banks did not make provi­sion for such bad loans earlier.

(A) Only 1

(B) Only 2

(C) Only 3

(D) Only 1 and 3 (E) Only 2 and 3

2. Which of the following is the full form of the term SLR as used in the banking sector?

(A) Social Lending Ratio (B) Statutory Liquidity Ratio (C) Scheduled liquidity Rate (D) Separate Lending Rate (E) None of these

3. As per the news published in various newspapers, some public sector banks are getting fresh capital infusion as a part of the recapitalization plan announced by the Finance Minister in Union Budget 2010-11. How much money was earmarked for the same?

(A) rupee 10,000 crore (B) rupee 12,000 crore (C) rupee 15,500 crore (D) rupee 16,500 crore (E) None of these

4. The RBI has decided to introduce which of the following systems in place of the existing 'Bench­mark Prime Lending Rate System' for charging interest on loans/ advances from July 2010?

(A) Prime Asset Lending System (B) Base Lending Rate System (C) Net Lending Rate System (D) Gross

 Lending Rate System (E) None of these

5. As per the news published in a major newspaper, profits of a major private bank in the 4th quarter of the year increased by 35% as the bank decided to keep a tight control on the cost. What are some of the ways by which the banks can control the cost?

By lowering down the interest rates on deposits

By bringing down the operating expenses

By reducing the interest rates on the credit

(A) Only I (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these

6. As we all know, the major source of income of the banks is lending money (providing credit) and earning interest on it. In normal circumstances, the demand of the credit comes mainly from which of the following sectors ?

1. Personal Loans

2. Priority Sector Lending and

3. Bailout Packages

4. Project Finance

(A) Only I

(B) Only 2

(C) Only 3

(D) All I, 2 and 3 (E) None of these

7. One of the sources of income of banks is to charge fee for certain services. What are some of the services provided by the banks for which they charge fee?

1. Issuing Demand Drafts/Pay Orders

2. Issue of ATM/Credit/Debit Cards

3. Electronic Transfer of Money

(A) Only 1

(B) Only 2

(C) Only 3

(D) AliI, 2 and 3 (E) None of these

8. The Prime Minister of India was recently on a visit to Bhutan. He went there for which of the following purposes ?

(A) To attend SAARC Summit (B) To attend the CHOGAM

(C) To inaugurate the first nuclear power plant of Bhutan made with the help of India

(D) He was to attend the 50th Independence Day of Bhutan as Chief Guest

(E) None of these

9. Many banks have launched/ floated their subsidiaries which are fully owned by them. Banks launch subsidiaries normally for which of the following busines­ses?

1. Home Loan Business

2. To sell Insurance Policies

3. To control Online Opera­tions or Internet Banking business

(A) Only 1(B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these

10. In one of his speeches, Dr. Pranab Sen said that there is No firm indication of sustainable recovery of India's economy. Who is Dr. Pranab Sen ?

(A) He is Chief Statistician of India(B) He is Chief Economist of RBI (C) He is the Deputy Chairman of the Planning Commission of India (D) He is the Foreign Secretary of India (E) None of these

11. "The set of directive principles issued by the Central Bank of a country or the process adopted by it to control the supply of money, availability of money, cost of money and rate of interest, etc. in order to bring stability and growth of the economy" are commonly known as-

(A) Monetary policy of the Central Bank of the country (B) Budget of the Govt. (C) Profit and Loss Account (D) Business Policy of the Bank (E) None of these

12. When the common people of a nation start getting very high salary or wages, the consump­tion of the goods like eatables and white goods, also start increasing. This situation brings which of the following types of inflation in the economy?

1. Cost push inflation

2. Demand pull inflation

3. Low inflation

(A) Only 1 and 3 (B) Only 2 (C) Only 3 (D) 1, 2 and 3 (E) Only 1

13. As per the news in some major newspapers, 'Kawasaki' has established an Indian unit to manufacture its products locally. What is the product of the Kawasaki ?

(A) Luxury cars (B) Motor-cycles (C) Tractors (D) Power tillers and agricul­tural equipments

(E) None of these

14. As per the news published in some newspapers, some Indian business houses are willing to import Uranium from Australia. But due to certain regulatory issues, this is not possible for

them. What is/are these regula­tory problems particularly those which govern the import/ export of Uranium like materials?

1. India has a special agree­ment with USA which does not allow India to import such radioactive materials from anywhere else.

2. India is not a signatory of Non-Proliferation Treaty. Hence, it cannot import Uranium from Australia or other such countries.

3. As per WTO rules, the export-import of radioactive material in its raw form is not allowed as it creates health hazards.

(A) Only 1 (B) Only 2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these

15. As per the news in some major newspapers, Tata Group of Industries has launched a joint venture in some countries which is planning to generate power by 'the energy of the heat of the earth'. Energy generated through this method is technically known as-

(A) Hydro-thermal energy (B) Natural power energy (C) Geo-thermal energy (D) Solar energy

(E) None of these

1. (D) 2. (B) 3. (D) 4. (B) 5. (B) 6. (D) 7. (D) 8. (A) 9. (D) 10. (A) 11. (A) 12. (B) 13. (B) 14. (B) 15. (C)