TARGET JAIIB Most Important Question Solved

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Q1. According to the 'American Institute of Certified Q5. Which among the following statements is incorrect
Public Accountants', which among the following is not about Management Accounting?
a fundamental part of the accounting process? a) It is forward looking and generally follows more
a) Recording
stringent accounting standards.
b) Analysing
c) Summarising b) It generally includes cost accounting and budgeting.
d) Classifying c) It assists management in the formulation of policies
and in decision making.
d) All the statements given above are true.
Q2. Which among the following is not a primary
objective of accounting?
a) To record, classify and summarise the data related
Q6. Who made the first attempt to include figures on
to economic transactions.
human capital in the company balance sheets?
b) To provide financial information to help decision
a) Hermansson
making about deployment of resources.
b) Morisson
c) To decide on the personal choices made by the
c) Johansson
promoters in a company.
d) Alfredson
d) To communicate the information about economic
activities of a firm to all concerned stakeholders.
Q7. Presently, 'Fair Value Accounting' does not enjoy
wide degree of acceptance due to
Q3. During fifteenth century, wealthy people employed a) increased cost and delays.
trained officers to keep records of their transactions, b) non availability of reliable information.
property, debts they owed, and the debts others owed c) fast changes in the market prices.
them. This system developed in Italy and was later d) All of the above
adopted by the other European nations. It also came to
be known as 'Double Entry Bookkeeping'.
What is the type of accounting system described Q8. Which among the following statements is incorrect
above? about the definition of accounting given by AICPA?
a) Stewardship Accounting 1. Accounting is a service activity which provides
b) Financial Accounting quantitative financial information.
c) Cost Accounting 2. Accounting is an analytical discipline which
d) Management Accounting defines, classifies and summarises data relating
to economic transactions.
3. Accounting is an information system which
Q4. What is the most important social purpose of collects and communicates economics
financial accounting? information to concerned people.
a) To manage the debt owed by the company to a) 1 and 3 only
maintain fiscal prudence. b) 1 and 2 only
b) To relay reliable information to investors to enable c) 2 and 3 only
them to take efficient investment decisions. d) None of the above
c) To limit the liability of the members to the nominal
values of their shares.
d) To give a legal form to the doctrine of stewardship. Q9. Which section of the Companies Act 2013 casts a
responsibility on the Board of Directors to comply with
mandatory accounting standards?
a) Section 134 (5)
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b) Section 120 (1) c) 1-b; 2-a; 3-d; 4-c
c) Section 137 (4) d) 1-b; 2-d; 3-c; 4-a
d) Section 141 (1)
Q14. Match the following:

Q10. The 'Accounting Standards Board (ASB)' was 1. AS 16 a. Related party disclosure
constituted by 'Institute of Chartered Accountants of 2. AS 17 b. Segment Reporting
India (ICAI)' in 3. AS 18 c. Borrowing Cost
a) 1967 a) 1-a; 2-c; 3-b
b) 1977 b) 1-c; 2-b; 3-a
c) 1987 c) 1-a; 2-b; 3-c
d) 1997 d) 1-b; 2-a; 3-c
Q11. Which among the following Accounting Standards Q15. Which Accounting Standard deals with effects of
is incorrectly matched? changes in Foreign Exchange Rates?
a) AS 3 – Cash Flow Statements a) AS 3
b) AS 4 – Contingencies b) AS 10
c) AS 5 – Revenue Recognition c) AS 7
d) AS 7 – Construction Contracts d) AS 11
Q12. Which of the following statements is/are

incorrect? Q16. Match the following:
1. Additional guidance given in Ind AS over and 1. Ind AS 101 a. Business Combinations
above what is given in IFRS, is termed as ‘Carve 2. Ind AS 103 b. First Time Adoption
in’. 3. Ind AS 105 c. Non-Current Assets Held for Sale
2. Differences that are in deviation to the a) 1-a; 2-b; 3-c
accounting principles and practices stated in b) 1-b; 2-a; 3-c
IFRS, are commonly known as ‘Carve-outs’. c) 1-c; 2-b; 3-a
3. The Government of India in consultation with the d) 1-c; 2-a; 3-b
ICAI decided to converge and not to adopt IFRS
issued by the IASB. Q17. Which among the following Ind AS deals with
a) 1 and 2 Statement of Cash Flows?
b) 2 and 3 a) Ind AS 107
c) 1 and 3 b) Ind AS 108
d) None of the above c) Ind AS 7
d) Ind AS 8

1. AS 9 a. Revenue Recognition Q18. Match the following:
2. AS 10 b. Property Plant and Equipment 1. Ind AS 21 a. Property, Plant & Equipment
3. AS 12 c. Accounting for government grants 2. Ind AS 33 b. Change in Foreign Exchange
4. AS 13 d. Accounting for Investments Rates
a) 1-a; 2-b; 3-c; 4-d 3. Ind AS 12 c. Income Taxes
b) 1-b; 2-a; 3-c; 4-d 4. Ind AS 16 d. Earnings per share

a) 1-a; 2-b; 3-c; 4-d b) Tangible Real Accounts
b) 1-b; 2-a; 3-c; 4-d c) Intangible Real Accounts
c) 1-b; 2-a; 3-d; 4-c d) Artificial Personal Accounts
d) 1-b; 2-d; 3-c; 4-a
Q22. Which among the following is not an essential

Q19. Which of the following given statements is/are item that must be recorded in an accounting voucher?
correct? a) Date of transaction.
1. Quantitative Characteristics are the attributes b) Name of the accounts to be credited and debited.
of accounting information that tend to enhance c) The page number of the journal where the voucher
its understandability and usefulness. is recorded.
2. Relevance means information should be free d) Name of person who prepared the voucher.
from error and bias.
3. Relevance, Understandability, Reliability, and
Comparability are the Qualitative Q23. Arrange the following processes in the correct
Characteristics of accounting information. order from first to last according to the accounting
Choose the correct answer using the codes given below: cycle:
a) 1 and 2 1. Entries are posted to appropriate ledger account.
b) 2 only 2. All transactions are entered into journal or
c) 1 and 3 subsidiary books.
d) 3 only 3. Preparation of trial balance and income
statement.
a) 1 - 2 - 3
Q20. Which of the following given statements is/are b) 2 - 1 - 3
incorrect? c) 1 - 3 – 2
1. Balance Sheet is a financial statement that d) 2 - 3 - 1
provides aggregate data regarding all cash
inflows and outflows of a company.
2. A trial balance is a financial statement that Q24. The owner withdraws Cash and Goods from the
reports a company's assets, liabilities, and office for personal use.
shareholder equity at a specific point in time. Journalise the above transaction.
3. The Cash Flow Statement only shows the a) The Cash and Sales account will be debited and the
company's outflows. Drawings account will be credited.
4. Income Statement that shows the company's b) The Cash and Purchases account will be debited and
income and expenditures. the Drawings account will be credited.
Choose the correct answer using the codes given below: c) The Drawings account will be debited and the Cash
a) 1,2 and 4 and Purchases account will be credited.
b) 2 and 3 d) The Drawings account will be debited and the Cash
c) 1 and 3 and Purchases account will be credited.
d) 1, 2 and 3
Q25. Which of the following given statements is/are

Q21. Which among the following is not a type of incorrect?
account that is commonly used in accountancy? 1. As per the modern approach of rules of
a) Tangible Personal Accounts journalizing accounts are divided into 3 categories.

2. In the journal, in each transaction, a brief Choose the correct answer using the codes given below:
description of the transaction is given which is a) 1 and 2
known as narration. b) 2 and 3
3. Wages paid for the erection of machinery are c) 1 and 3
debited to the profit and loss account. d) 2 only
a) 1 and 2
b) 2 and 3
c) 1 and 3 Q29. A trader has made a sale of Rs 50,000 out of which
d) Only 1 cash sales amounted to Rs 15,000. He showed trade
receivables on 31st March at Rs 35,000. Which concept
is followed by him?
Q26. Which of the following given statements is/are a) Revenue Recognition Concept
correct? b) Accrual Basis
1. An Account is in the form of L shape. c) Money Measurement Concept
2. Trial Balance is prepared from Ledger. d) Matching Concept
3. When an entry is made in journal accounts to be
debited are listed first.
4. Balancing of Accounts means the difference in the Q30. When a person invests money in his business as
total of debit and credit. capital, it is recorded in the accounting records as
a) 1, 2 and 3 ________ of the business to the owner.
b) 2, 3 and 4 a) Asset
c) 1, 3 and 4 b) Liability
d) Only 1 c) Income
d) Loss
Q27. Which among the following statements is Q31. A company purchases a new computer for Rs
incorrect? 10,000 in 2019. The computer is expected to last 10
a) The process of recording a transaction in a journal is years, meaning it will produce projects for the
known as Journalising. projected decade. The company should charge the
b) The transfer of Journal Entry to a Ledger account is computer's price tag to the depreciation expense of Rs
called Posting. 1,000 per year, adding up to 10 years.
c) Journal reduces the possibility of an error. Which accounting concept is highlighted above?
d) In Journal, all entries are recorded in random order. a) Business Entity Concept
b) Materiality Concept
c) Going Concern Concept
Q28. Which of the following given statement is/are d) Matching Concept
incorrect?
1. The Objectivity concept requires that the same
accounting method should be used from one Q32. Which of the following statement is incorrect?
accounting period to the next. a) It is assumed that a business follows Going Concern
2. The Full Disclosure Principle states that Concept.
financial statements should disclose all b) Personal Transactions and Business transactions are
significant information. distinguished according to Business Entity Concept.
3. The Prudence concept is also known as
Consistency Concept.

c) Materiality Concept states that expenses incurred in b) 1-b; 2-a; 3-c
an accounting period should be matched with c) 1-c; 2-b; 3-a
revenues during that period. d) 1-c; 2-a; 3-b
d) The Cost concept requires that all assets are
recorded in the book of accounts at their purchase Q37. Which of the following given statements is/are
price. incorrect?
1. Salary is a liability.
2. Bank Overdraft is a liability.
Q33. With reference to the 'Cost Concept', which of the 3. Furniture is an asset.
following statements is incorrect? 4. Cash and Cash equivalents are assets.
a) Fixed assets are kept at the historical cost of a) 1 only
purchase. b) 1, 2 and 3
b) Every transaction is recorded with present value. c) 2, 3 and 4
c) Unrealised gains are recorded with the value of d) 1 and 4
estimated realisation.
d) An item which has no cost, is not recorded in books.
Q38. Things that cannot be touched but can be
measured in monetary terms, like goodwill, patent
Q34. Which of the following statement is incorrect? rights, trademarks etc., are recorded in which type of
a) As per the money measurement concept, non- account?
monetary transactions are recorded in the books of a) Real Account
accounts. b) Personal Account
b) Going Concern assumes that business would not be c) Nominal Account
liquidated in the foreseeable future. d) None of the above
c) The Business Entity Principle is also known as the
Separate Entity Principle.
d) The Cash Basis of accounting violates GAAP. Q39. The Journal Entry to record the purchase of
equipment (asset) for Rs 2,00,000 cash and a balance of
Rs 8,00,000 due in 30 days include
Q35. Which of the given above following statement is a) Equipment A/c Dr. 2,00,000
correct in respect of Double entry accounting? To Cash A/c 2,00,000
a) All transactions that create debits to asset accounts b) Equipment A/c Dr. 10,00,000
must create credits to liability or capital accounts. To Cash A/c 2,00,000
b) A transaction that requires a debit to a liability To Creditors A/c 8,00,000
account require a credit to an asset account. c) Equipment A/c Dr. 10,00,000
c) Every transaction must be recorded with equal To Cash A/c 2,00,000
debits equal total credits. To Debtors A/c 8,00,000
d) All of the statements are correct. d) Equipment A/c Dr. 10,00,000
To Cash A/c 10,00,000

1. Rent Paid Account a. Real Account Q40. The business started with Cash of Rs 10,000,
2. Rent Receivable Account b. Personal Account Furniture worth Rs 4,000 and Goods worth Rs 6,000.
3. Cash Account c. Nominal Account Journalise the above transaction.
a) 1-a; 2-b; 3-c

a) The cash account, furniture account, and purchases What is the status of his capital as on 31st March 2017?
account will be debited and the Funds account will a) 25000
be credited. b) 20000
b) The cash account, and furniture account, will be c) 27500
debited and the Purchases account will be credited. d) 30000
c) The cash account will be debited and the furniture
account and purchases account will be credited.
d) None of the above is the correct journalisation. Q45. On 31st March 2017, the total assets and external
liabilities were Rs 2,00,000 and Rs 6,000 respectively.
During the year, the proprietor introduced additional
Q41. ‘Rent Receivable Account’ is a type of capital of Rs 20,000 and he withdrew Rs 12,000 for
a) Intangible Real Account personal use. He made a profit of Rs 20,000 during the
b) Representative Personal Account year. Calculate the capital as on 1st April 2016.
c) Nominal Account a) 1,66,000
d) None of the above b) 1,76,000
c) 1,56,000
d) 2,16,000
Q42. Profit and loss account contains various items
related to Expenses and Income. The nature of which is
a) Nominal Account Q46. Which of the following given statements is/are
b) Real Account correct?
c) Personal Account A bill of exchange is drawn by the drawer upon his
d) None of these debtor.
Transfer of a negotiable instrument to another person
by signing on it is known as Endorsement.
Q43. Which of the following given statements is/are Bill of exchange cannot be enchased from the bank.
incorrect? a) 1 and 2
1. Accounts related to an individual, firm, company, or b) 2 and 3
institution are called real accounts. c) 1 and 3
2. Accounts that relate to both tangible and intangible d) Only 2
assets to the firm are called personal accounts.
3. Accounts that relate to expenses, losses, revenue,
and gain are called nominal accounts. Q47. Which of the following given statements is/are
a) 1 and 2 incorrect?
b) 2 and 3 1. 5 days of grace are added in terms of the bill to
c) 1 and 3 calculate the date of its maturity.
d) Only 1 2. A person who endorses the promissory note in
favour of another is known as an Endorser.
3. A bill that is accepted by a party and for which
Q44. Kashyap started a business on 1st April 2015 with he has to pay the money is called a Bills
a capital of Rs 10,000 and a loan of Rs 5,000 borrowed Receivable.
from Ramesh. a) 1 and 2
During 2016 - 17, he introduced additional capital of Rs b) 2 and 3
7,500 and had withdrawn Rs 2,500 for personal use. c) 1 and 3
On 31st March 2017, his assets were Rs 30,000. d) Only 2

a) Suspense A/c Dr 1600
To Megha 1600
Q48. Which of the following given statements is/are b) Megha Dr 1600
incorrect? To Suspense A/c 1600
1. A trial balance is normally prepared at end of the c) Suspense A/c Dr 600
year. To Megha 600
2. In Trial Balance, the debit balance must be equal to d) Suspense A/c Dr 1000
the credit balance. To Megha 1000
3. Trial Balance helps in identifying all the errors.
a) 3 only
b) 1 and 2 Q52. What will be debited in the rectification entry if
c) 1 and 3 the Rent paid Rs. 2,000 was wrongly shown as payment
d) 1 only to the landlord in the cashbook?
a) Rent A/c
b) Expenses A/c
Q49. Which among the following statements is c) Payment A/c
incorrect? d) Landlord A/c
a) Trial Balance can be prepared in two ways.
b) Under totals method, the total of each side in the
ledger (debit and credit) is ascertained separately Q53. Sale of old machinery recorded as sales. This is an
and shown in the trial balance in the respective example of
columns. a) Error of Principle
c) Under the balances method, a trial balance is b) Error of Commission
prepared by showing the balances of all ledger c) Error of Omission
accounts and totaling up debit and credit columns. d) Compensating Error
d) Totals-cum Balances method is a combination of the
totals method and the balances method.
Q54. Which among the following statements is
incorrect?
Q50. Which among the following statements is correct? a) Compensating Error is not disclosed by a trial
a) Errors of Commission are the errors that are balance.
committed due to the wrong posting of b) Rectifying entries are passed in Journal proper.
transactions. c) A suspense account is used to balance the trial
b) Errors of Commission are the errors that are balance.
committed due to the wrong totaling or wrong d) The wrong casting of subsidiary books does not
balancing of the accounts. affect the trial balance.
c) Errors of Commission are the errors that are
committed due to the wrong casting of the
subsidiary books. Q55. Which of the following items is/are correct in
d) All of the above regard to property, plant, and equipment?
a) Computer software bought for use during a single
accounting period
Q51. What will be a rectified journal entry if sales b) A machine bought for use in more than one
returns from Megha Rs 1,600 were posted to her accounting period
account as Rs 1,000?

c) A machine bought for use during a single accounting b) Capital Expenditure is shown in the balance sheet.
period c) Revenue Expenditure gives benefit of enduring
d) A machine bought for resale to a customer nature.
d) Capital expenditure increases the earning capacity
of a business.
Q56. Entity A purchased an asset on 1st April 2015 for
1,00,000 and the asset had an estimated useful life of
10 years and a residual value of nil. On 1st January Q60. Which among the following statements is correct?
2019, the directors review the estimated life and decide a) The benefit of Revenue Expenditure extends to
that the asset will probably be useful for a further 4 periods beyond the accounting period.
years. b) Payment of Rent, Salaries, are examples of Revenue
Calculate the amount of depreciation for each year Expenditure.
starting from the 5th year, if the company charges c) Revenue Expenditure is shown in Balance Sheet.
depreciation on Straight Line basis. d) Revenue Expenditure is shown in the credit side of
a) Rs 10,000 the profit and loss account.
b) Rs 15,000
c) Rs 60,000
d) Rs 40,000 Q61. Which of the following is incorrect about financial
statements?
1. Profit and loss account shows the profit or loss of a
Q57. Which of the following statements is incorrect? business as on a given date.
1. Conversion of loan into equity results in change in 2. Balance sheet shows the position of assets and
liabilities but total liabilities remain the same. liabilities of a business as on a particular date.
2. Purchase of fixed assets on credit results in change 3. Trading account shows a net profit or a net loss.
in total liabilities only. a) 1 and 2
3. Repayment of loan results in change in both assets b) 2 and 3
and liabilities. c) 1 and 3
a) 1 only d) Only 2
b) 2 only
c) 3 only
d) None of the above Q62. Which of the following is not a contingent liability?
1. Uncalled liability on investments in partly paid
shares.
Q58. Which of the following statements is incorrect? 2. Cost of issue of debenture
a) In case of a business entity, an asset is created by 3. Preliminary expenses incurred
taking a lability of an equal amount. 4. Statutory liability under dispute
b) The liabilities consist of claims of owners and claims a) 1 and 2
of outsiders. b) 2 and 3
c) If assets increase and liabilities do not, Capital will c) 1 and 3
decrease. d) Only 1
d) None of the above.
Q63. Rectify the following errors by making suitable

Q59. Which of the following statements is incorrect? rectification entry:
a) Legal expenses are capital expenditures. Rent paid ₹200 is posted in the ledger account as ₹2000.

a) Rent A/c Dr. 200 3. Debit balance in Suspense account is shown in
To Cash A/c 200 balance sheet on Asset side.
b) Cash A/c Dr. 1800 a) 1 and 2
To Rent A/c 1800 b) 2 and 3
c) Rent A/c Dr. 1800 c) 1 and 3
To Cash A/c 1800 d) Only 2
d) Cash A/c Dr. 200
To Rent A/c 200
Q67. Which of the following given statements is/are
incorrect?
Q64. Which of the following given statement is/are 1. Personal account balances at closing are
correct? transferred to next account period.
1. Net Profit = Gross Profit + Other Income - Indirect 2. Nominal accounts balances at closing are
Expenses. transferred to the asset side of the balance
2. Earning Before Interest and Tax is also known as sheet.
Operating Profit a) 1 only
3. Operating Profit = Net Sales- Operating Cost b) 2 only
a) 1 and 2 c) Both 1 and 2
b) 2 and 3 d) Neither 1 nor 2
c) 1 and 3
d) All of the above
Q68. What is the objective to form a ‘Profit & Loss
Adjustment Account’?
Q65. Rectify the following errors by making suitable a) To rectify errors in nominal accounts of the
rectification entry: preceding accounting period.
Goods purchased from Sohanlal wrongly recorded in b) To rectify the compensating errors in the trial
sales register with amount ₹500. balance of current accounting period.
a) Sales A/c Dr. 500 c) To rectify errors in the profit & loss account in the
Purchase A/c Dr. 500 current accounting period.
To Sohanlal A/c 1000 d) To assimilate entries in Suspense account in the
b) Sales A/c Dr. 500 Journal proper.
To Sohanlal A/c 500
c) Purchase A/c Dr. 500
To Sales A/c 500 Q69. Which among the following reasons for
d) Sohanlal A/c Dr. 1000 differences in Cashbook and passbook do not require a
To Purchases A/c 500 change in the cashbook?
To Sales A/c 500 a) Interests earned in savings account.
b) Amount paid by banks on standing instructions.
c) Cheques issued but not presented for payment.
Q66. Which of the following given statements is/are d) Dishonour of cheques.
correct?
1. Suspense account is used to rectify one sided
errors in ledgers. Q70. Reconciliation of overcasting on receipts side of
2. If the trial balance debit total is more, it is shifted cash book ____________.
to the debit side of suspense account. a) increases the balance in cash book
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b) increases the balance in passbook What is the overdraft value as per the bank passbook?
c) decreases the balance in cash book a) Rs. 8,220
d) decreases the balance in passbook b) Rs. 7,390
c) Rs. 7,320
d) Rs. 13,320
Q71. A machine costing Rs 10,00,000 is purchased; Rs
2,00,000 is paid in cash and for the rest Rs 8,00,000, a
credit arrangement is made which would be paid after Q74. Aman Brothers has an overdraft of Rs. 40,000 as
6 months. How this transaction would impact the per the Cash Book on 31 March. On 22 March, a cheque
balance sheet? for Rs. 5,000 was issued to a supplier, but not presented
a) Total assets would increase by Rs 10,00,000 and for payment till 31 March. Dividend of Rs. 2,500 was
total Liabilities by 10,00,000 directly credited to the bank on 27 March but was
b) Total assets would increase by Rs 8,00,000 and total informed to Aman Brothers on 2 April. A cheque for Rs.
Liabilities by 8,00,000 3,600 was deposited in the bank on 29 March, but
c) Total assets would increase by 2,00,000 payment was realised on 4 April. The overdraft as per
d) Total Liabilities would increase by 10,00,000 passbook is:
a) 36,100
b) 46,100
Q72. When assets are listed in order of liquidity in a c) 38,900
balance sheet, in which order the following shall d) 43,900
appear?
1. Goodwill
2. Cash in Hand Q75. Repairs of second hand machinery purchased is
3. Machinery debited to repairs account. It is an error of
4. Bills Receivables a) Compensating
a) Cash in Hand, Bills Receivables, Machinery, b) Omission
Goodwill. c) Commission
b) Cash in Hand, Bills Receivables, Goodwill, d) Principle
Machinery.
c) Goodwill, Machinery, Bills Receivables, Cash in
Hand. Q76. Which of the following is an error of commission ?
d) Machinery, Goodwill, Bills Receivables, Cash in a) Sales book was overcast by Rs. 600 and purchase
Hand. book was undercast by the same amount
b) Treating charges as addition to asset
c) A sale of Rs. 6,000 omitted to be recorded
Q73. The following is the information available of X d) A purchase of Rs. 7,400 was wrongly posted
Limited as on 31st March 2018.
1. Overdraft as per the cash book Rs. 7,300
2. Cheques paid into the bank account but not credited Q77. Which of the following is the correct treatment for
Rs. 3,400 the adjustment of unpaid salaries as on 31 March 2021?
3. Cheques issued but not presented for payment Rs. a) Debit Outstanding salaries A/c, credit Salaries A/c
450 and show as Current assets in the balance sheet.
4, Bank charges debited in the passbook Rs. 70 b) Debit Salaries A/c, credit Outstanding salaries A/c
5. Cheques directly deposited by the customer into the and show as Current liabilities in the balance sheet.
bank account Rs. 3,000.

c) Debit Outstanding salaries A/c, credit Salaries A/c 2. Update and renovation
and show as Current liabilities in the balance sheet. 3. Accidents
d) Debit Salaries A/c, credit Outstanding salaries A/c 4. Inflation
and show as Current assets in the balance sheet. a) Only 4
b) Only 1
c) Only 3
Q78. It is given in adjustment that during the d) Only 2
accounting year, the trader distributed goods worth
₹5,000 as free samples. While preparing Final Accounts,
this will be shown in Q83. Which of the following is a need for accounting for
a) Profit and Loss Account depreciation of assets?
b) Both in Trading and Profit and Loss Account a) To correctly ascertain the profits or losses of the
c) Trading Account firm.
d) Balance Sheet b) To correctly determine the value of assets to depict
them in the balance sheet.
c) To make provision for replacement of assets.
Q79. Freight expenses for carrying Machinery is carried d) All of the above.
to Travel A/c, then rectification in trial balance is
_________.
a) Debit Machinery a/c and credit travel a/c Q84. Which of the following is a factor of depreciation?
b) Credit Machinery a/c and debit travel a/c 1. Cost of the assets
c) Credit Profit & Loss a/c and debit travel a/c 2. Residual cost of assets
d) Debit Profit and Loss a/c and credit travel a/c 3. Estimated years of useful life
a) 1 and 2
b) 2 and 3
Q80. Which of the following will not affect Trial c) 1 and 3
Balance? d) All of the above
a) Goods sold on credit not recorded in the books.
b) Overstating of sales register
c) Rent account credited instead on debit Q85. In which one of the following methods of
d) Salary debited to the extent of half the amount paid. calculating depreciation, the amount of depreciation
depends on the volume of production?
a) Sum of digits of years
Q81. Which of the following is an incorrect statement b) Units of production
about Depreciation? c) Written down value
a) Depreciation is a part of operating cost. d) Straight line
b) It is a reduction in the value of asset.
c) Depreciation occurs due to change in market values
due to inflation. Q86. A fixed percentage is charged as depreciation on
d) All assets depreciate in value with time. the diminishing value of the asset each year during the
useful life of the asset under _________.
a) Straight line method
Q82. Which of the following is not a cause for b) Annuity method
depreciation? c) Written down method
1. Wear & tear d) Sinking fund method

Q87. Which one of the following is not true? d) Debit the cost to the property, plant, and
a) Depreciation is an expense charged to the Profit & equipment account.
Loss account.
b) Depreciation is not a part of the operating costs.
c) All assets are not depreciated necessarily at the Q92. An asset has a useful life of 3 years.
same rate. Cost of the asset is Rs 3,000.
d) Depreciation is like an insurance expense. Residual Value is Rs 600.
Rate of depreciation is 50%.
Using Diminishing Balance Method, Depreciation
Q88. Depreciation shrinks the __________. expense for the 3rd year will be ______.
a) Scrap value of asset a) Rs 800
b) Market value of asset b) Rs 300
c) Residual value of asset c) Rs 600
d) Book value of asset d) Rs 900
Q89. Accounting Standards in India (AS10 and Ind AS Q93. Which one of the following statements best
16) recognize which of the following methods of describes the 'carrying value' of an asset?
calculating depreciation? a) The amount at which the asset is recognised in the
a) Straight line method balance sheet after deducting any accumulated
b) Diminishing balance method depreciation and accumulated impairment losses.
c) Units of production method b) The higher of the asset's value in use and its
d) All of the above recoverable amount.
c) The cost of the asset less its residual value.
d) The higher of the asset's NRV and its value in use.
Q90. Company A buys a piece of equipment for Rs
10,700. The equipment has an expected life of 10 years
and a salvage value of Rs 1400. Calculate the Q94. The objective of this Standard is to prescribe the
depreciation amount per year under straight line basis. accounting treatment for property, plant and
a) Rs 1,210 equipment so that users of the financial statements can
b) Rs 1,070 discern information about an entity’s investment in its
c) Rs 930 property, plant and equipment and the changes in such
d) Rs 1,033.33 investment.
Which of the following Ind AS constitutes the above
objective ?
Q91. An entity installed an assembly line in Year 1. Four a) Ind AS 10
years later, Rs 1,00,000 was invested to automate the b) Ind AS 107
line. The automation increased the market value and c) Ind AS 16
productive capacity of the assembly line but did not d) Ind AS 113
affect its useful life. Proper accounting for the cost of
the automation should be to ____________.
a) Report it as an expense in Year 5 Q95. The H&W Co. acquired a new industrial washing
b) Establish a separate account for the Rs 1,00,000. machine, the list price of which was Rs 52,000. The
c) Allocate the cost of automation between the asset supplier allowed a trade discount of Rs 4,000 off the list
and accumulated depreciation accounts.

price. On delivery, the cost of installing the machine in b) the number of production or similar units expected
its desired location was Rs 950. to be obtained from the asset by an enterprise
According to AS - 10 - 'Property, Plant and Equipment', c) It is the higher of an asset’s net selling price and its
what is the cost of the machine to be capitalised? value in use.
a) Rs 48,000 d) Both A and B
b) Rs 52,950
c) Rs 48,950
d) Rs 56,950 Q100. Which of the following is the correct formula for
straight-line depreciation?
a) Straight-Line Depreciation = (Purchase Price +
Q96. An ___________ is the amount by which the Salvage Value) / Useful Life
carrying amount of an asset exceeds its recoverable b) Straight-Line Depreciation = (Purchase Price –
amount. Salvage Value) / Useful Life
a) impairment profit c) Straight-Line Depreciation = Purchase Price –
b) impairment loss Salvage Value
c) impairment income d) Straight-Line Depreciation = Purchase Price/ Useful
d) impairment gain Life
Q97. Which of the following statements is/are Q101. An expenditure is decided to be ‘capital’ or
incorrect? ‘revenue’ depending upon which of the following
1. AS 10 is also known as Accounting Standard for factors?
Fixed Assets. 1. Nature of expense
2. AS 6 was withdrawn after the issuance of AS 10 2. Effect of revenue earning capacity
Property Plant and Equipment. 3. Benefit from expenditure
3. Ind AS 16 deals with Property Plant and a) 1 and 2 only
Equipment. b) 2 and 3 only
a) 1 and 2 c) 1 and 3 only
b) 2 and 3 d) 1, 2 and 3
c) 1 and 3
d) Only 1
Q102. Which of the following statement is incorrect?
1. Non – recurring expenditure is capital expenditure
Q98. ____________ is the estimated book value of an in nature.
asset after depreciation is complete. 2. Purchase of motor cars or buildings is capital
a) Premium Value expenditure.
b) Salvage Value 3. Expenses which help to generate income in the
c) Par Value current year are capital in nature.
d) Final Value a) Only 1
b) Only 3
c) Only 2
Q99. What is the useful life of an asset? d) 1, 2 and 3
a) the period over which an asset is expected to be
available for use by an enterprise.

Q103. A wall clock is purchased for ₹500 for use in office Q108. If the bill is drawn on 28th April 2023 Payable
for 10 years. But it may be treated as a revenue after 30 days, what is the final maturity date of the bill?
expenditure based on the provisions of which of the a) 31st May 2023
following concept? b) 30th May 2019
a) Going concern concept c) 29th May 2019
b) Materiality concept d) 31st March 2019
c) Matching concept
d) Consistency concept
Q109. What is the accounting entry in the books of the
creditor on the date of final maturity of the bill, in case
Q104. Freight expenses for moving machinery to the Creditor Retains the Bill till Maturity?
factory is ________. a) Cash/Bank A/c Dr. to Bills Receivable A/c
a) Revenue expenses b) Bills Receivable A/c Dr. to Debtors A/c
b) Deferred revenue expenditure c) Debtors A/c Dr. to Creditors A/c
c) Capital expenditure d) Creditors A/c Dr. to Debtors A/c
d) None of the above
Q110. What is the accounting entry when the creditor

Q105. Which one of the following is incorrect? discounts the bill in a bank?
a) Replacement of defective part of machinery is a) Bank A/c Dr. To Discount A/c To Bills Receivable A/c
revenue expenditure. b) Bills Receivable A/c Dr. To Discount A/c To Bank A/c
b) Daily wages paid for erection/installing of c) Bank A/c Dr. Discount A/c Dr. To Bills Receivable A/c
machinery is capital expenditure. d) Bank A/c Dr. Bills Receivable A/c Dr. To Discount A/c
c) Underwriting commission for issue of shares is
revenue expenditure.
d) Excess of sale price of Machinery over is written – Q111. When a bill is drawn and accepted, which of the
value but less than cost price is treated as revenue following journal entry is passed in the books of the
receipt. drawer?
a) Debtors A/c Dr. to Bills Receivable A/c
b) Creditors A/c Dr. to Debtors A/c
Q106. For an expense to be classified as revenue or c) Bills Receivable A/c Dr. to Acceptor's A/c
capital depends on _________. d) Acceptor's A/c Dr. to Creditor's A/c
a) Kind of expense
b) Duration of benefit of expenditure
c) Effect on revenue earning capacity Q112. Which of the following given statements is/are
d) All of the above incorrect?
1. There are three parties in a bill of exchange.
2. Drawer is the person upon whom the bill of
Q107. Which among the following statements is/are exchange is drawn.
correct? 3. Drawee is the maker of the bill of exchange.
a) Acceptance by other person is must, otherwise, it a) 1 and 2
would not be a valid bill of Exchange b) 2 and 3
b) A bill of exchange must be in writing. c) 1 and 3
a) The order to make payment is unconditional. d) Only 2
b) All of the above.

Q113. Which among the following statements is/are Q117. Mahesh draws a bill on Sanjay for Rs.3000.
incorrect? Mahesh endorsed it to Suresh. Suresh endorsed it to
a) Normally, the drawer and the payee are the same Ramesh. The payee of the bill will be
person. a) Suresh
b) Drawer and Drawee cannot be the same parties in a b) Ramesh
bill of exchange. c) Mahesh
c) According to the Reserve Bank of India Act, a d) Sanjay
promissory note payable to the bearer is legal.
d) A promissory note does not require any acceptance.
Q118. Which of the following options are available to
the receiver of a Bill of Exchange?
Q114. Which among the following statements is/are a) Retain the bill till maturity
incorrect? b) Discounting the bill with the bank
a) There are two parties to a promissory note. c) Endorse the bill in favour of a creditor
b) Drawee is the person who makes or draws the d) All of the above
promissory note.
c) Payee is the person in whose favour the promissory
note is drawn. Q119. Which of the following given statements is/are
d) Generally, the drawee is also the payee. incorrect?
1. Bills Receivable is a liability.
2. Bills Payable is an asset.
Q115. Which among the following statements is/are 3. From an Accounting point of view, Bills of
incorrect? Exchange are of two types.
a) Noting authenticates the fact of dishonour. a) 1 and 2
b) A fees is charged by the Notary Public which is called b) 2 and 3
Noting Charges. c) 1 and 3
c) When a bill is dishonored, it is customary to get it d) 1, 2 and 3
Noted by Notary Public.
d) Noting charges are ultimately borne by the drawer.
Q120. Which act governs the Bills of Exchange in India?
a) Companies Act 2013
Q116. Which of the following given statements is/are b) Indian Negotiable Instruments Act, 1881
incorrect? c) Foreign Exchange Management Act, 1999
1. Kite Bill is an informal name for Accomodation d) Consumer Protection Act, 1986
Bill.
2. Accommodation Bill is a bill drawn and
accepted for mutual help. Q121. A bill of exchange was drawn on 11th July 2013;
3. Due date is the period between the dates of its term was 1 month. What will be the date of
drawing the bill and when it becomes due for maturity?
payment. a) 14th August
a) 1 and 2 b) 15th August
b) 2 and 3 c) 11th August
c) 1 and 3 d) 16th August
d) Only 3

Q122. If the due date is a public holiday what will be the Q127. Goods sold for cash Rs 30,000. Plus 5% GST. Sales
due date of the bill? account will be credited by:
a) The same day a) 30,000
b) Preceding day b) 31,500
c) Following day c) 33,000
d) After 3 days d) 28,000
Q123. Ramesh drew on Suresh three Bills of Exchange Q128. Match the following:
respectively on 29th, 30th, and 31st January, 2013. The 1. Defective goods returned by Raja a. Journal
term in each case is 1 month. What will be the due date Proper
of payment in each case? 2. Providing interest on capital b.
a) 1st March Purchase Book
b) 2nd March 3. Sold goods to Ravi c.
c) 3rd March Sales Return Book
d) 4th March 4. Purchased goods from Asha Traders d. Sales
Book
a) 1-c, 2-a, 3-d, 4-b
Q124. Which of the following will be the journal entry b) 1-b, 2-a, 3-d, 4-c
for the cancellation of the old bill in the books of c) 1-c, 2-d, 3-a, 4-b
Drawee? d) 1-a, 2-c, 3-d, 4-b
a) Bills Payable A/c Dr To Drawer's A/c
b) Bills Payable A/c Dr To Drawee's A/c
c) Bills Receivable A/c Dr To Drawer's A/c Q129. M/s Randeep & Sons sold 40 ink pads @ Rs 8
d) Bills Receivable A/c Dr To Drawee's A/c each, 50 files @ Rs 10 each, 20 colour books @ Rs 20
each to Ishan Stationary and provided 5% trade
discount.
Q125. The act of signing and transferring the bill is How this transaction will be recorded in the Ishan
called an _________. Stationary Ledger Account?
a) Honoured a) To Sales A/c 1,159
b) Dishonoured b) By Sales A/c 1,220
c) Endorsement c) To Sales A/c 1,161
d) Discounted d) By Sales A/c 1,227
Q126. In which book of original entry, will you record a Q130. In which, books of original entry the following
bill receivable of Rs 10,000, which was received from a transactions will be recorded:
debtor in full settlement for a claim of Rs 10,100, is 1. Goods purchased from Suyash for Rs 50,000 on
dishonored? credit.
a) Purchases Return Book 2. Provisions for doubtful debts created @10% on
b) Bills Receivable Book debtors.
c) Journal Proper a) Journal Proper, Bills Receivable Book
d) Purchases Book b) Sales Book, Journal Proper
c) Purchases Book, Journal Proper
d) Purchases Return Book, Sales Book

Q131. Which of the following given statement is/are d) None of the above.
incorrect?
1. A cash book is both a subsidiary book and a
principal book. Q135. Which one of the following is not a debit
2. The debit Side of the cash book shows payments voucher?
made in cash. a) Challans for deposits into Government accounts.
3. The credit side of the cash book shows the receipts b) Cheques issued by customers.
of the cash. c) Drafts issued by other branches of bank payable at
a) 1 and 2 the branch.
b) 2 and 3 d) Term deposit receipts presented for payment.
c) 1 and 3
d) 1, 2 and 3
Q136. Which one of the following is not a credit
voucher?
Q132. In which, books of original entry the following a) Pay in slip filled by customers for deposit in their
transactions will be recorded: accounts.
1. Defective goods sold to Parul on credit worth Rs b) Application for issue of term deposits.
40,000 were returned by her. c) Letter of authority signed by the customer
2. Purchased furniture on credit from Mr. Ratan for Rs containing standing instructions.
15,000. d) None of the above.
a) Sales Return Book, Journal Proper
b) Journal Proper, Purchases Book
c) Purchase Return Book, Purchases Book Q137. Which of the following statements is/are not
d) Sales Book, Journal Proper correct about accounting systems in the banks?
a) Accounting systems in different banks vary in terms
of nature of transactions processed.
Q133. Which one of the following is true? b) The software used in accounting systems do not
a) An insolvent is a person from whom some portion differ amongst different banks.
of the debt is recoverable. c) Accounting system in a bank is designed considering
b) Drawer drags the drawee to court in case of the nature and volume of operations.
dishonour of accommodation bill. d) All the above statement are correct.
c) When the due date of a bill falls on a public holiday,
it is payable on the preceding day.
d) Drawee is a person to whom bill is endorsed. Q138. Which one of the following functions in a bank is
normally not performed by the Back office?
a) Reminders for renewals of term deposits.
Q134. Banks follow the accounting procedure of b) Deposit of cash by the customers at the counter.
‘voucher posting’ under which the vouchers are c) Calculation and posting of interest in loan accounts.
_______. d) Maintenance of General Ledger and other books of
a) First posted in General Ledger and then to the account.
individual accounts in subsidiary ledgers.
b) Straightway posted to the individual accounts in
subsidiary ledgers. Q139. Which one of the following transactions does not
c) First posted in the Day – book and then to the result in Inter-Office debit or credit entry?
accounts in the subsidiary ledgers.

a) Advance to a staff member by debit to suspense a) Ensure that the financial statements give a true and
account. fair view.
b) Payment of travellers’ cheques issued by other b) Detect of errors.
branches. c) Detect and prevent frauds.
c) Receipts from other branches of the proceeds of the d) Enhance the shareholder value.
instruments sent for collection.
d) Issue of drafts.
Q145. Internal audit is aimed at __________.
a) Improving profitability
Q140. The problem about reconciliation at the branch b) Tax planning
level, which has not been resolved by computerization, c) Ensuring accuracy of books of accounts
is that of d) Ensuring equitable distribution of loans to weaker
a) Savings Bank accounts sections of society.
b) Current accounts
c) Drafts issued accounts
d) Suspense and Sundry deposit accounts Q146. Which one of the following statements is not
correct?
a) Forensic audit is an examination and evaluation of
Q141. Which of the following is/are the typical and financial information for use of evidence in court.
most common types of errors observed in Inter – office b) Tax audit is an analysis of tax returns submitted.
accounts? c) Only large borrower accounts are normally
a) Recording of particulars in incorrect fields. subjected to stock and receivables audit.
b) Double recording of the same transaction. d) Management audit is conducted by the
c) Posting of transactions in incorrect office accounts. management of bank.
d) All of the above
Q147. The book ‘An Introduction to Indian Government

Q142. Which of the following are the common errors in Accounts and Audit’ is issued by
the branch daily statements? a) Reserve Bank of India
a) Wrong identification of the type of transaction b) Comptroller and Auditor General of India
b) Recording of particulars in incorrect fields c) Controller of Accounts
c) Difference between the closing and opening d) Statistical Institute of India
balances in success
d) After 3 days
Q148. Which chapter of the Companies Act 2013 deals
with appointment of auditors, their removal,
Q143. Long Form Audit Report is issued by ________. resignation, powers etc.?
a) Concurrent Auditor a) Chapter IX
b) Statutory Auditor b) Chapter X
c) Internal Auditor c) Chapter XI
d) Tax Auditor d) Chapter XII
Q144. Primary objective of financial audit is to Q149. Which among the following statements is
_________. incorrect?

a) Auditor must exercise judgement and only express Q154. Internal audit is generally undertaken by
an opinion. _________.
b) Auditor has to depend on explanation by others. a) Tax experts
c) Auditors must check each and every transaction to b) Auditors approved by RBI
determine their accuracy. c) Company secretary
d) All of the above statements are correct. d) Bank’s own staff
Q150. Which among the following statements is Q155. When the balance as per the cash book is staring
incorrect regarding Ind AS 16? point, in the reconciliation, the amount of cheques
a) Each part of PPE with a cost significant in relation to issued and not presented are
the total cost of the item shall be depreciated a) Subtracted
separately. b) Added
b) Depreciation charge for each period shall be c) Ignored
mentioned in the Balance sheet. d) Either added or subtracted
c) Depreciation methods used should be disclosed in
the financial statements.
d) Depreciation rates and useful life of assets should Q156. Which of the following is true when a debtor
be disclosed in the financial statements. pays his dues?
a) Assets side of balance sheet will decrease.
b) Asset side of the balance sheet will increase.
Q151. According to AS 10, an item of PPE that qualifies a) Liability side of balance sheet will increase.
as an asset should be measured at cost which includes b) There is no change in total assets or total liabilities.
a) Purchase cost including import duties
b) Non refundable taxes
c) Cost of dismantling Q157. Based on which of the following concepts, is
d) All of the above share capital account shown on the liability side of a
balance sheet?
a) Business entity concept
Q152. Banks are encouraged to adopt International b) Money measurement concept
Internal Audit Standards, like those issued by c) Cost concept
a) Basel Committee on Banking Supervision d) Going concern concept
b) Institute of Internal Auditors
c) Both a & B
d) None of the above Q158. Which one of the following is not considered as
Research & Development costs?
a) Testing in search for product alternatives
Q153. Which one of the following is not true? b) Legal work on patent application
a) Head of Internal Audit shall be an outside person c) Modification of design of a process
approved by RBI. d) Searching for application of new research findings
b) Head of Internal Audit has access to all records or
files.
c) Head of Internal Audit has authority to Q159. Which among the following is not a type of bank
communicate with any staff member. audit?
d) All of the above mentioned statements are true. a) Concurrent audit

b) Legal audit 4. Foreign Exchange transactions
c) Internal audit a) 1, 2 and 3
d) Statutory audit b) 2, 3 and 4
c) 1, 2 and 4
d) 1, 3 and 4
Q160. Which among the following is not a regular stage
of statutory audit?
a) Detection of revenue leakages Q164. The scope of work to be entrusted to concurrent
b) Understanding Risk Management Processes auditors, coverage of business/branches, etc. is left to
c) Determining Audit Materiality the discretion of the
d) Assessing risks associated with outsourcing of a) Head of Internal Audit
activities. b) Chief Executive Officer
c) Chairman of Board of Directors
d) Banking Ombudsman
incorrect about the internal audit in banks?
a) The internal audit function should not be Q165. Which among the following system is incorrect?
outsourced. a) Banks’ Internal Audit Department should develop a
b) Experts, including former employees, can be hired reporting system for concurrent auditors.
on contractual basis for internal audit. b) Minor irregularities pointed out by the concurrent
c) The Head of Internal Audit should be appointed for auditors shall be brought to the notice of Head
a long period, preferably for a minimum of three Office/Controlling Office.
years. c) The zone-wise findings of concurrent audit may be
d) Remuneration of internal audit staff should be reported to ACB/LMC on a quarterly basis.
linked to financial performance of business lines. d) Whenever fraudulent transactions are detected,
they should immediately be reported to Internal
Audit Department and also to the Chief Vigilance
Q162. Which of the following statements are incorrect Officer.
about ‘Concurrent Audit’?
a) It shortens the interval between a transaction and
its examination. Q166. Risk-Based Internal Audit (RBIA) system has been
b) There is emphasis on test checking rather than mandated by RBI for which of the following?
substantive checking in key areas. 1. All Scheduled Commercial Banks
c) It is a continuous audit which goes on all the year 2. All Regional Rural Banks
around. 3. All Non-Deposit Taking NBFCs
d) Any exceptions found are recorded in the 4. All Urban Cooperative Banks with asset size of
Concurrent Audit Report. ₹500 crore and above
a) 1, 3 and 4
b) 1, 2 and 3
Q163. Which among the following are included in the c) 2, 3 and 4
Minimum areas of coverage under Concurrent Audit, d) 1, 2 and 4
according to RBI guidelines?
1. Cash transactions
2. Treasury operations Q167. A firm has deposited with the bank ₹50000 cash
3. Outsourcing of operations but bank credited this amount to another account. A

cheque issued by the firm for ₹43000 has been
dishonoured due to the above reason. The balance as
per cash book is ₹9745. What is the balance as per pass Q172. On 1st January 2018, Abhinav & Co purchased a
book? machinery by cheque for ₹4 lakhs. The estimated scrap
a) ₹8765 value of the machinery is ₹60000. Depreciation is
b) ₹2755 provided @15% p.a. by diminishing balance method.
c) ₹6577 Calculate the value of machinery at the beginning of 3rd
d) ₹2745 year.
a) ₹360000
b) ₹340000
Q168. The depreciation method in which the c) ₹245650
depreciation is calculated on the principle value and d) ₹289000
assets lose equal value every year is called as ______.
a) Straight line method
b) Written down value method Q173. A machine is purchased for ₹10 lakhs. Installation
c) Sum of years’ digits method charges of ₹100000 were incurred. Depreciation @10%
d) Double declining method was provided on Straight line basis. The machine was
sold for ₹600000 after 5 years. Calculate the profit or
loss on sale of machine?
Q169. The __________ is the scrap value of the asset a) ₹ 50000 loss
after end of the useful life of that asset. b) ₹100000 loss
a) Book Value c) ₹50000 profit
b) Residual value d) ₹60000 profit
c) Market value
d) None of these
Q174. An equipment purchased is to be depreciated on
fixed instalment system. The journal entry for charging
Q170. A machinery costs ₹5 lakh and its life is 15 years depreciation is ________?
& scrap value is ₹50000. What is the depreciated value a) Depreciation a/c Dr. To P&L a/c
of the machinery at the end of 4th year as per straight b) P&L a/c Dr. To Depreciation a/c
line method? c) P&L a/c Dr. To Equipment a/c
a) ₹410000 d) Depreciation a/c Dr. To Equipment a/c
b) ₹380000
c) ₹350000
d) ₹320000 Q175. The rule ‘Credit the Giver’ would be applicable in
which of the following transactions?
a) Purchase of goods on credit from Mr. X
Q171. A new machine is purchased for ₹5 lakh. b) Introduction of capital by the promoter
Depreciation is provided @10% by diminishing balance c) Taking a loan from bank
method. If machine is sold for ₹450000 at the end of 3rd d) All of the above
year then what will be the profit or loss?
a) 45000 loss
b) 45000 profit Q176. Ram sold goods to Shyam on credit worth
c) 85500 loss ₹50000. Which among the following is correct Journal
d) 85500 profit entry made by Ram?

a) Shyam a/c Dr. To Sales a/c Q182. Which among the following statements is
b) Shyam a/c Dr. To Goods a/c incorrect?
c) Sales a/c Dr. To Shyam a/c a) Recording is the process of entering business
d) None of the above transactions in the books of original entry.
b) Communication involves communicating the
financial statements to various users.
Q177. Which of the following is a nominal account? c) Identifying involves analyzing and interpreting
a) Rent payable financial data.
b) Salary receivable d) Measuring means quantification of business
c) Commission outstanding transactions into financial terms.
Q183. A Which of the following statement will be

Q178. What type of account is “Goodwill Account”? recorded in the books of Accounts?
a) Real Account a) A new communication channel was implemented
b) Personal Account by the company.
c) Nominal Account b) Rajlaxmi was appointed as the Manager of the
d) None of the above company.
c) Company paid salary to Ratan.
d) Rohit was shifted from Manufacturing Department
Q179. Credit means to Sales Department.
a) Increase in asset account
b) Decrease in liability account
c) Decrease in capital account Q184. The increasing awareness on the part of
d) None of these entrepreneurs and industrial managers for using
scientific principles of management led to the
development of
Q180. A firm allows discount of 5% to its customer a) Cost Accounting
whenever they make payment before the due date. It b) Financial Accounting
is called c) Scientific Accounting
a) Trade discount d) Value Accounting
b) Commission on sales
c) Cash discount
d) Discount on sales Q185. Which of the following given statements is/are
correct?
1. Measurement means the quantification of
Q181. Which among the following is not a feature of business transactions into financial terms by using
Bank Reconciliation Statement? monetary units.
a) It helps in arriving at the actual position of the bank 2. Communication means determining what
balance. transactions to record.
b) It is prepared by the bank. 3. Recording is the process of entering business
c) It will record any delays in clearing. transactions in the books of accounts.
d) BRS helps in fraud detection of cheques. Choose the correct answer using the codes given below:
a) 1 and 2
b) 2 and 3

c) 1 and 3 a) Banks may adopt appropriate system and practices
d) Only 1 for conducting IS audit on annual basis.
b) The banks may adopt an IS audit policy (if not done
already) appropriate to its level of computerization.
Q186. Inflation accounting is concerned with the c) Information systems audits should be preferably
overcoming of limitations arising in financial undertaken after the statutory audit.
statements because of d) The IS audit reports should be placed before the top
a) changes in interest rates. management and the compliance should be
b) changes in labour turnover. ensured within the time frame as outlined in the
c) assumption of stable monetary unit. audit policy
d) losses because of depreciation.
Q191. Which of the following systems is incorrect?

Q187. Which of the following statement is/are a) An institution’s board of directors establishes an
incorrect? “Audit Committee” to oversee audit functions.
a) Financial Accounting is concerned with generating b) A designated member of an Audit Committee needs
accounting information. to possess the knowledge of Information Systems,
b) Cost Accounting helps in price-fixation decisions. related controls and audit issues.
c) Management Accounting addresses the needs of c) Internal Audit is a part of the Board’s assurance
the management. process with regard to the integrity and
d) All of the statements above are correct. effectiveness of systems and controls.
Q188. Fair Value Accounting is also known as

a) Fixed Value Accounting Q192. Which among the following is a critical
b) Nominal Value Accounting component or process related to Information Systems
c) Real Value Accounting Audit?
d) Current Value Accounting a) System Characterisation
b) Vulnerability Identification
c) Impact Analysis
Q189. Which of the following statements is/are d) All of the above
correct?
1. The traditional method of 'double entry
bookkeeping originated in Greece. Q193. Which among the following is not a benefit of
2. Kautilya wrote a book on accountancy which was doing a Computer Assisted Audit?
named ‘Arthashastra’. a) Reduces the time to complete the audit.
Choose the correct answer using the codes given below: b) Less need of professional skills on part of auditors.
a) 1 only c) Increases accuracy of the audit.
b) 2 only d) Improves compliance and lessens chance of making
c) Both 1 and 2 errors.
d) Neither 1 nor 2
Q194. Which among the following is not among the

Q190. Which among the following statements is Computer assisted audit techniques?
incorrect about Information Systems Audit? a) Stratification

b) Duplicate Record Checks Q199. For the bank as a whole, the transactions which
c) Sampling remained unmatched/unreconciled appears as inter
d) Ranging office adjustments balance in “Branch Adjustment
Account” in the balance sheet of the bank – under the
head ‘Other Assets’ if it is debit and under ‘Other
Q195. ________ represents the difference on account Liabilities and Provisions’ if it is credit.
of incomplete recording of transactions between one a) Other Assets ; Other Liabilities and Provisions
branch and another branch or between one branch and b) Other Incomes ; Other Expenses
head office. c) Other Liabilities and Provisions ; Other Assets
a) Incomplete Transactions A/c d) Deferred Assets ; Deferred Liabilities and Provisions
b) Inter Office Adjustment (Net) A/c
c) Pending Adjustments A/c
d) None of the above Q200. Which among the following statements is
incorrect?
a) A company has separate legal entity.
Q196. Which of the following is not a transaction that b) Shareholders are the owners of the company.
will result in Inter Office debit or credit entry? c) Liability of a shareholder is limited to paid-up value of
a) Transactions through NEFT,ECS and RTGS the shares allotted to him.
b) Payment of instruments like gift cheques/bankers’ d) Maximum number of members in a private company
cheque is 200.
c) Deposit made by customers at home branches.
d) Head Office interest receivable and payable by
branches Q201. Which among the following statements is not
correct?
a) An asset is created by taking a liability of an equal
Q197. RBI had instructed the banks to reconcile the amount.
entries outstanding in their inter branch accounts b) Net worth of a business is the liability of the
within a period of business towards its owners.
a) Three months c) The claim of owners do not include the balance of
b) Six months reserves and surplus.
c) Nine months d) The liabilities consist of claims of owners and claims
d) Twelve months of outsiders.
Q198. Banks have been advised by RBI to segregate the Q202. Which among the following is an incorrect
credit entries outstanding for more than 5 year in inter representation of Balance sheet equation?
branch accounts and transfer them to a separate a) Assets = Total Claims on the Company
__________. b) Outside Liabilities = Assets – Capital
a) Open account c) Claims of owners = Assets + Claims of Creditors
b) Blocked account d) Net worth = Assets - Creditors
c) Pending Transactions account
d) None of these
Q203. If assets increase and liabilities do not, the capital
will _________.
a) increase

b) decrease Q209. At the end of an accounting period, the balances
c) do not change of _______ are transferred to the Profit & Loss Account.
d) change depending upon the change in revenues. a) All the ledger accounts
b) All the income and expense accounts
c) Only the tangible real accounts and some income
Q204. Conversion of loan into equity results in and expense accounts
_________. d) Some intangible real accounts and some income
a) Change in both assets and liabilities and expense accounts
b) Change in total assets only
c) Change in total liabilities only
d) Change in liabilities but total liabilities remain the Q210. Which one of the following accounts is used for
same providing dividend?
a) Profit & Loss Appropriation account
b) Profit & Loss Account
Q205. Purchase of fixed assets on credit results in c) Profit & Loss Adjustment account
_______. d) Reserves and surplus account
a) Change in total assets only
b) Change in both assets and liabilities
c) Change in total liabilities only Q211. Which one of the following is correct about
d) Change in liabilities but total liabilities remain the methods of valuation of closing stocks, permitted by
same Ind AS 2?
a) It permits use of only LIFO method for inventory
valuation.
Q206. Repayment of loan results in _________. b) It permits use of only FIFO method for inventory
a) Change in both assets and liabilities valuation.
b) Change in total assets only c) It permits use of FIFO or Weighted Average method
c) Change in total liabilities only also for inventory valuation.
d) Change in liabilities but total liabilities remain the d) It is silent about the methods of valuation of closing
same stocks.
Q207. Sale of goods on credit results in _______. Q212. Which one of the following entries in the ledger
a) Change in both assets and liabilities is made without any financial transaction?
b) Change in total assets only a) Purchase of raw material during the year.
c) Change in total liabilities only b) Sale of goods on credit during the year.
d) Change in assets but total assets remain the same c) Discounts received during the year.
d) Depreciation during the year.
Q208. Which among the following is not an example of

liability for a business? Q213. A firm has received advance rent from a tenant,
a) Creditors for the month of April, in March. Which of the following
b) Bills payable adjustment entries is correct while preparing the
c) Stock in trade accounts for the year ending in March?
d) Bank overdraft a) Debit ‘Advance Rent Received’ account; credit ‘Rent
Received’ account.

b) Debit ‘Rent Payable’ account; credit ‘Advance Rent c) 70,000
Received’ account. d) 50,000
c) Debit ‘Rent Received’ account; credit ‘Bank’
account.
d) Debit ‘Rent Received’ account; credit ‘Advance Rent Q218. Which among the following statements is
Received’ account. incorrect?
a) Trading account consists of two sides.
b) The trading account helps to compare closing stock
Q214. ________ is an entry in a company's general and opening stock.
ledger that occurs at the end of an accounting period to c) Trading account is prepared at the end of the
record any unrecognized income or expenses for the period.
period. d) 'Wages and Salaries' account is treated as an
a) Adjustment entry indirect expense.
b) Pending entry
c) Closing entry
d) Contra entry Q219. Which among the following is shown in the debit
side of the profit & loss appropriation account?
a) Surplus balance brought forward from previous
Q215. Which among the following statements is year.
incorrect? b) Transfer to dividend / interim dividend.
a) Ind AS 1 requires that financial statements must be c) Net profit for the year.
prepared using the accrual basis of accounting. d) Amount withdrawn from general reserve.
b) Adjustment entries are made prior to preparing the
financial statements.
c) Accrual accounting is based on the revenue Q220. Which of the following documents is not part of
recognition principle. the complete set of financial statements as prescribed
d) Adjustment entries involve balance sheet accounts by Ind AS 1?
only. a) Profit & Loss Appropriation statement
b) Statement of changes in equity
c) Statement of cash flows
Q216. Which of the following statement is incorrect d) Profit & Loss statement
regarding the objective of inventory valuation?
a) To determine true profit and Loss
b) To show true financial position of the business Q221. Which one of the following is not a feature of a
c) To properly value closing stock joint stock company?
d) To evade tax liability a) It has an independent legal status.
b) Common seal is mandatory to be affixed on all
important documents.
Q217. Ram started his business on April 1, 2016 with his c) Members’ liability is limited.
own capital of Rs 60,000 and took a loan from the bank d) It has perpetual succession.
of Rs 50,000. On 31st march, 2017 Total assets were Rs
1,80,000. Calculate profit earned during the year ending
31st March 2017. Q222. Food Corporation of India is an example of
a) 1,10,000 a) Statutory company
b) 1,80,000 b) Chartered company

c) Private limited company Q227. Which among the following statements is/are
d) Holding company incorrect.
a) Company’s shares are generally transferable.
b) Share application account is a personal account.
Q223. When can a company issue equity shares at a c) The director of a company must be a shareholder.
discount? d) Paid up capital can exceed called up capital.
a) If the company has not begun commercial
production.
b) If the company is in loss for last 3 years. Q228. A salient characteristic of the capital of a
c) If the shares are issued to its own staff. company is that the amount on its shares can be
d) If the shares are issued as sweat equity. gradually collected in easy instalments spread over a
period of time depending upon its growing financial
requirement. The first instalment is collected along
Q224. In which of the following situations can a with application and is known as
company forfeit the shares already issued? a) Front money
a) When a shareholder becomes insolvent. b) Allotment money
b) When a company is under liquidation. c) Application money
c) When a shareholder does not pay dues on shared d) Call money
which he holds.
d) Shares once issued cannot be forfeited.
Q229. Which among the following is shown in the debit
side of the profit & loss appropriation account?
Q225. Which one of the following statements is correct a) Surplus balance brought forward from previous
about minimum paid up capital of a company? year.
a) It is ₹1 lakh for a private limited company. b) Transfer to dividend / interim dividend.
b) It is ₹10 lakh for a public limited company. c) Net profit for the year.
c) It is ₹5 lakh for a private limited company. d) Amount withdrawn from general reserve.
d) No minimum paid up capital is prescribed.
Q230. All money received along with application for

Q226. Which among the following statements is issue of shares is deposited with a scheduled bank in a
incorrect? separate account opened for the purpose.
a) The total capital that a corporation accepts from its The journal entry is as follows:
investors by issuing shares that are listed in the a) Bank A/c Dr.
firm’s official documents is known as authorized To Share Application A/c
share capital. b) Share Application A/c Dr.
b) The portion of Authorized Share Capital that is To Share Capital A/c
issued to the public for subscription is known as c) Share Application A/c Dr.
Issued Share Capital. To Bank A/c
c) The portion of issued capital that has been sold to d) Share Allotment A/c Dr.
the public is known as subscribed capital. To Share Capital A/c
d) All the statements are correct.
Q231. Which one of the following is not classified under

‘Intangible Assets’?

a) Brands / Trademarks Q236. For the purpose of preparing cash flow
b) Computer hardware statement, which one of the following is considered as
c) Mining rights ‘Financing Activity’?
d) Goodwill a) Issue of fresh capital
b) Processing of goods
c) Redemption of debentures
Q232. In the balance sheet of a company the trade d) Sale of manufactured goods
receivables are required to be sub-classified into 3
categories. Which one of the following is not amongst
these? Q237. For the purpose of preparing cash flow
a) Unsecured, considered good statement, which one of the following is considered as
b) Doubtful ‘Investment activity’?
c) Secured, considered good a) Buyback of shares
d) Loss b) Redemption of debentures
c) Manufacture of goods
d) Disposal of machinery
Q233. Which one of the following entities is required to
present consolidated financial statements, as per Ind
AS 110? Q238. Which one of the following is a source of funds?
a) All companies having more than one division. a) Increase in fixed assets
b) All government companies. b) Increase in inventory
c) Entity that controls one or more other entities. c) Increase in current liabilities
d) All the companies are required to present d) Decrease in capital
consolidated financial statements.
Q239. Which one of the following is a use of funds?

Q234. In the prescribed format of the Statement of a) Increase in capital
Profit & Loss of a company, which one of the following b) Increase in current liabilities
items is not included? c) Increase in term loans
a) Earnings per equity share d) Increase in receivables
b) Profit before tax
c) Profit (loss) for the period Q240. Which among the following is not a correct
d) Price earnings ratio statement regarding Cash Flow or Fund Flow
statements?
a) Both Cash flow and Fund flow statements are
Q235. For the purpose of preparing cash flow mandatory part of financial statements.
statement, which one of the following is considered as b) Cash flows from operating, financing and investing
‘Operating Activity’? activities to be shown separately.
a) Acquisition of machinery c) Funds flow statement used the accrual system of
b) Purchase of goods for sale accounting.
c) Issue of debentures d) Funds flow statement determines the changes in
d) Repayment of term loan working capital through a specific period.

Q241. Which one of the following is not considered to d) None of the above
be a ‘Subsidiary book’ in the banks?
a) Current account ledger
b) General ledger Q247. For the core banking system of a large bank,
c) Loan ledger which one of the following statements is true?
d) Bills discounted and purchased ledger a) Each branch has its own server connected directly
to servers of other branches.
b) There is only one powerful server at centralized
Q242. Schedule 10 of the balance sheet of a bank data centre.
provides details of _______. c) Each branch has a server connected to the server at
a) Fixed assets centralized data centre.
b) Current assets d) None of the above
c) Investments
d) Other assets
Q248. Which one of the following is not amongst the
benefits of core banking?
Q243. Rebate on bills discounted refers to a) It supports multi-currency operations.
a) Concessional rate of discount for priority sector b) It provides 24x7 operations.
b) Rebate provided to priority customers of the bank c) It provides improved customer satisfaction.
c) Unexpired discount d) It increases bank’s profit as customers are charged
d) None of the above extra for core banking.
Q244. ‘Operating expenses’ shown in one of the Q249. Which one of the following statements is not
schedules of the Profit & Loss account of the bank, do correct regarding computerized accounting?
not include _________. a) Business transactions are captured in the form of
a) Law charges accounting entries.
b) Printing and stationary expenses b) It offers benefits of speed and accuracy.
c) Payments to employees c) Higher costs, as compared to human labour, is a
d) Interest expenditure disadvantage of it.
d) Mostly, digital computers are used in computerized
accounting.
Q245. Interest earned by a bank is shown under which
schedule of the Profit & Loss account?
a) Schedule 13 Q250. Which one of the following is not amongst the
b) Schedule 14 disadvantages of computerized accounting?
c) Schedule 15 a) Requirement of qualified staff for operations.
d) Schedule 16 b) Costly computer peripherals and stationery.
c) Regular back up is required.
d) Secrecy of customers’ transactions is lost.
Q246. In a computerized bank, we should ___________.
a) Change our password at least once a month
b) Not share our password with anyone under any Q251. Which Section of the Banking Regulation Act
circumstance (1949) defines Banking as “the accepting, for the
c) Not allow anyone to use our computer purpose of lending or investment, of deposits of money

from the public repayable on demand or otherwise and d) None of the statements are incorrect.
withdraw able by cheque, draft, order or otherwise’ ?
a) Section 3
b) Section 5 Q256. Which among the following is an incorrect pair
c) Section 7 with regards to the schedules furnished with the
d) Section 10 balance sheet?
1. Schedule 1 - Capital
2. Schedule 2 - Borrowings
Q252. Which among the following statements is 3. Schedule 3 - Deposits
incorrect regarding the accounting system followed in a) 1 and 3 only
banks? b) 2 only
a) Entries in the personal ledgers are made directly c) 2 and only
from the vouchers. d) 1 only
b) The general ledger’s trial balance is extracted and
agreed every day.
c) Single voucher is prepared for every transaction not Q257. A banking company has to disclose ‘Cash in hand’
involving cash. and ‘Balances with RBI’ under which of the following
d) All the statements given above are correct. schedule?
a) Schedule 4
b) Schedule 5
Q253. The ‘General Ledger’ in banking companies does c) Schedule 6
not usually include which of the following books? d) Schedule 7
a) Personal ledgers
b) Profit & Loss accounts
c) Bill for collection register Q258. Which among the following is not included under
d) Loan ledger ‘Other Assets’ disclosed under Schedule 11?
a) Interest accrued
b) Stationery and stamps
Q254. A trial balance is prepared in a bank every day. In c) Inter office adjustments
case the trial balance does not tally and there is a short d) Leased assets
credit, the difference is temporarily transferred to
a) Sundry credits account
b) Unreconciled account Q259. The amount of provision for taxation is charged
c) Adjustment account to the Profit & Loss Account under __________, and in
d) Sundry deposit account the Balance Sheet it will be shown under __________.
a) ‘Outstanding Expenses’ ; ‘Other Liabilities &
Provisions’
Q255. Which among the following statements is b) ‘Outstanding Expenses’ ; ‘Contingent Liabilities’
incorrect? c) ‘Provisions & Contingencies’ ; ‘Other Liabilities &
a) All deposits accepted at the branch are deemed to Provisions’
have been passed on to head office. d) ‘Provisions & Contingencies’ ; ‘Contingent
b) All loans made at the branch are deemed to have Liabilities’
been made from funds received from head office.
c) Head office pays interest to the branch for its
deposits.

Q260. Which among the following is an incorrect pair Q264. Which among the following is not a category
with regards to the schedules furnished with the Profit under which SLR and Non-SLR securities are classified in
& Loss Account? banks?
1. Schedule 13 - Operating expenses a) Available for sale
2. Schedule 14 - Other Incomes b) Held to maturity
3. Schedule 15 - Interest earned c) Held for security
a) 1 and 3 only d) Held for trading
b) 2 only
c) 2 and only
d) 1 only Q265. Which among the following statements is
incorrect?
a) Investments under ‘Held to Maturity’ should not
Q261. Which among the following statements is exceed 50% of total investments in banks.
incorrect? b) Securities held by banks for trading should be sold
a) A bank’s advances are divided between performing within ninety days.
and non-performing assets. c) Securities held by banks till maturity need not be
b) A term loan is treated as NPA, if the interest remains marked to market.
overdue for more than 90 days. d) None of the statements are incorrect.
c) The income for performing assets is recognized on
accrual basis.
d) Interest income from non-performing assets is Q266. Which among the following is an incorrect pair
recognized on accrual basis. with regards to disclosure requirements prescribed by
BASEL III Capital regulations?
1. Pillar 1 - Minimum Capital Requirements
Q262. Which among the following is correctly matched? 2. Pillar 2 - Supervisory Review Process
1. Sub - Standard Asset - Asset which has remained 3. Pillar 3 - Market Discipline
NPA for less than 12 months a) 1 and 3 only
2. Doubtful Asset - Asset which has remained sub- b) 2 only
standard for 12 months c) 2 and only
3. Loss Asset - Identified by auditors or RBI but not d) 1 , 2 and 3
written off wholly
a) 1 and 2 only
b) 2 and 3 only Q267. Banks are required to make Pillar 3 disclosures at
c) 1 and 3 only least on a half yearly basis, with the exception of which
d) 1, 2 and 3 of the following?
a) Capital adequacy
b) Credit Risk: General disclosures for All banks
Q263. What is the provisioning requirement prescribed c) Credit Risk: Disclosures for Portfolios subject to
for ‘Loss assets’ in the balance sheets of banks? Standardised Approach
a) 0.25% to 1% depending on type of advance d) All of the above
b) 15% general provision on total outstanding
c) 25% general provision on total outstanding
d) 100% of total outstanding Q268. Which among the following items is not shown in
the Assets side of the Balance sheet of Banking
companies?

a) Lockers or Safe Deposit Vaults a) Conflict of interest between the company and its
b) Acceptance Endorsements suppliers
c) Reserve Funds b) Conflict of interest between the company and its
d) Loan Advances customers
c) Conflict of interest between the company and
government
Q269. Which among the following is not recognized as d) Conflict of interest between the shareholders and
an operating expense in Profit & Loss Accounts of the management of the company.
Banking companies?
a) Interest on Inter-bank Borrowings
b) Depreciation of Bank’s property Q274. Risk return trade-off implies which of the
c) Rent, taxes and lighting following?
d) Auditor’s fees and expenses a) Aiming at high return and low risk
b) Aiming at low risk and low return
c) Striking a balance between risk and return
Q270. Which among the following is a systems layer d) None of the above
between the Head office server and the branch server?
a) Presentation layer
b) Delivery layer Q275. Capital structure implies which one of the
c) Application layer following?
d) All of the above a) Proportion of fixed and current assets.
b) Proportion of current assets and liabilities.
c) Proportion of long term and short term liabilities.
Q271. Which one of the following statements about d) Proportion of debt and capital.
Corporate Social Responsibility (CSR), is not correct?
a) Companies Act 2013, specifies the companies which
are required to spend money on CSR. Q276. Which among the following statement is wrong
b) CSR spend is totally voluntary and there is no legal about ‘Sole Proprietary Firm’?
requirement to spend money on CSR. a) There is a legal distinction between the owner and
c) Only specified activities are eligible to be covered the firm.
under CSR. b) Profit of the firm is taxed as personal income of the
d) Companies are required to spend at least 2% of their proprietor.
average net profits on CSR. c) This type of firm is subject to minimum regulations.
d) Proprietor exclusively owns all the assets and profits
of the business.
Q272. Which one of the following is not amongst
business ethics?
a) Philanthropy Q277. What can be the maximum number of members
b) Honesty in a Partnership Firm as per the Companies Act 2013
c) Integrity and Companies (Miscellaneous) Rules 2014?
d) Trustworthiness a) 25
b) 50
c) 75
Q273. Which one of the following can be considered as d) 100
an Agency Problem in Financial Management?

Q278. Which among the following is not one of the c) While calculating Quick Ratio, all current liabilities
fundamental principles of Finance? are not taken into account.
a) A rupee received today is more valuable than a d) Debtors’ Turnover Ratio is higher if the company
rupee received in future. sells more goods on credit basis than on cash basis.
b) An investment contains both rewards of profit and
risk of loss.
c) Risk should be diversified over many investments. Q283. Which one of the following is true?
d) Short term fund requirements should be met with a) Higher debt/equity ratio increases the profit margin
long term sources to maintain prudence. of a company.
b) Debt/equity ratio is an indicator of solvency of a
company.
Q279. Which among the following is not recognized as c) A high current ratio is always an indicator of the
a building block of the modern financial management? efficient management.
a) Accountability d) Depreciation is not an expense and should be
b) Integrity excluded while calculating profitability ratios.
c) Stability
d) Viability
Q284. Which one of the following statements is correct
about Fixed Assets Ratio?
Q280. If return from existing assets is lower than a) It is a ratio of fixed assets and net worth.
potential returns from some other asset, a finance b) It is a ratio of fixed assets and long term funds.
manager may decide to dispose existing assets and shift c) A ratio of less than 1 indicates that short term
to the other assets. Which fundamental principle of resources have been diverted for creation of fixed
finance will be followed to take such a decision? assets.
a) Return Cost d) None of the above statements is correct.
b) Potential Investment Incentive
c) Uncertainty Cost
d) Opportunity Cost Q285. An amount of ₹40,000 for 3 years fetches a
simple interest of 11% p.a. The total interest at the end
of 3 years is ₹_______.
Q281. DSCR Ratio is used in which of the following? a) 14,400
a) Judging the margin of safety available before there is b) 13,200
default in repaying the loan. c) 10,200
b) Judging whether the firm has borrowings d) 8,800
disproportionate to its net worth.
c) Judging the capacity of the firm to service the interest
on debt. Q286. Which one of the following is not a type of
d) All of the above. Annuity?
a) Special annuity
b) Annuity due
Q282. Which one of the following is true? c) Ordinary annuity
a) Both EPS and PE Ratio vary with the stock market d) All of the above are types of annuities
price of company’s share.
b) While calculating Debt/Equity ratio, fixed deposits
from Shareholders are taken as part of debt.

Q287. Which one of the following statements is correct b) Bonds are part of the net worth of an enterprise.
about compounding of interest? c) A bond is issued for a specified period of time.
a) When the period of compounding is reduced, the d) A bond carries a specific rate of interest.
amount of total interest is more.
b) Compounding of interest means that interest is paid
on the principal and the accumulated interest. Q292. The duration of a bond is ______.
c) If the rate of interest is same, the total amount of a) The holding period for which interest rate risk
interest is more under compound interest disappears.
compared to that under the simple interest. b) The period remaining for the maturity.
d) All of the above statements are correct c) The period for which the bond has been issued.
d) The gap between two interest payments.
Q288. Which one of the following is a method of

repayment of a debt? Q293. When the required rate of return (market
a) Equal monthly/quarterly installment plus interest rate) is equal to the coupon rate, the value of
accumulated interest. the bond is ________.
b) Equated monthly/quarterly installment covering a) Less than its par value.
both the principal and the interest. b) More than its par value.
c) Buffet/balloon repayment. c) Equal to its par value.
d) All of the above. d) Decided by its unexpired period.
Q294. Which one of the following statements is

Q289. A sinking fund is created ____________. correct?
a) When there is a need for a specified amount of a) Bonds can be issued only with call option.
money at a specified future date. b) Bonds can be issued only with put option.
b) When the profit of an enterprise is more than its c) Bonds can be issued with both call and put option.
requirements. d) Bonds can be issued with either call or out option.
c) As it is mandatory.
d) To take care of future working capital needs.
Q295. Which one of the following statements is correct
about zero-coupon bonds?
Q290. Which among the following statements is a) Zero-coupon bonds pay no regular interest.
incorrect? b) They are issued at a discount to par value.
a) Ratios provide data for inter-firm comparison but c) The bondholder receives the full principal amount
not for intra firm comparison. on the redemption rate.
b) Ratios help in planning and forecasting for the d) All of the statements are correct.
future investments.
c) Ratios simplify the comprehension of financial
statements. Q296. When the exchange of currencies takes place on
d) All of the statements given above are correct. the next working day, it is known as _____.
a) SPOT
b) TOM
Q291. Which one of the following statements about c) CASH
bonds is not correct? d) READY
a) Bonds are debt instruments.

Q297. When the exchange of currencies takes place on Q301. Calculate Working Capital from the following
the second working day, after the date of the deal, it is data:
known as ________.
a) SPOT
b) TOM
c) CASH
d) READY
a) 1,64,900
Q298. Which one of the following statements is correct b) -28,300
about forward rate? c) 28,300
a) In case of direct rates, if the forward rate is more d) 79,700
than the spot rate, the base currency is at a
premium.
b) In case of direct rates, if the forward rate is less than Q302. Match the following:
the spot rate, the base currency is at a discount. A. Subscribed share 1. The part of authorized
capital capital that has not yet
c) The forward premium or discount, expressed in
been called up by the
basis points, is called Forward Points. company.
d) All of the above B. Issued share capital 2. Difference between
issued capital and
unsubscribed capital
Q299. Which one of the following factors determine the C. Uncalled capital 3. The amount of capital
forward points? that the company has
Offered to the public for
a) Supply and demand for the currency for the
subscription
settlement date. a) A-2; B-3; C-1
b) Market view, i.e. expectations, about the future.
b) A-3; B-2; C-1
c) The interest rate differential between the countries,
c) A-1; B-3; C-2
whose currencies are being exchanged. d) A-3; B-1; C-2
d) All of the above.

Q300. Decision on capital structure of a firm is affected incorrect?
by _______.
a) Cash flow statement shows inflows and outflows of
a) Banking requirements
the cash and cash equivalents.
b) Cost of debt b) Cash Flow Statements are prepared in accordance
c) Taxation
with Accounting Standard- 5 (AS-5).
d) All of the above
c) The primary objective of cash flow statement is to
provide useful information about cash flows of an
enterprise during a particular period under various
heads.
d) Cash flow statement classifies cash flows into
operating, investing and financing activities.

Q304. Which of the following given statement is/are Q308. While preparing the Cash Flow Statement,
correct? 'interest paid on debentures' will be considered as
1. Cash flow information is useful in assessing the a) Operating Activity
ability of the enterprise to generate cash and cash b) Investing Activity
equivalents. c) Financing Activity
2. The Cash flow statement enhances the d) Both A and C
comparability of the reporting of
operating performance by different enterprises.
3. The Cash flow statement does not help in Q309. Which of the transactions will result into a 'flow
of cash' into the business?
balancing its cash inflow and cash outflow.
a) 1 and 2 a) Deposited 10,000 into the bank.
b) 2 and 3 b) Withdrew cash from bank Rs 15,000.
c) 1 and 3 c) Sale of Machinery of the book value of Rs 74,000 at a
d) Only 2 loss of Rs 9,000
d) Converted Rs 2,00,000, 10% debentures into equity
shares.
Q305. Which of the following given statement is/are

correct? Q310. Which section of the Companies Act 2013 has
1. Principle revenue-producing activities mean prescribed that the Share Capital of a company is of two
types?
business activities being carried by the enterprise
to earn profit. a) Section 41
2. A single transaction does not include cash flow b) Section 43
under two different activities. c) Section 45
3. An inflow or outflow between the components of d) Section 50
Cash and Cash Equivalents is not considered while
preparing the cash flow statement. Q311. Which among the following statements is
a) 1 and 2 incorrect?
b) 2 and 3 a) Rate of dividend is fixed in Preference Shares.
c) 1 and 3 b) Equity Shares are convertible into debentures.
d) Only 2 c) Preference Shares are redeemed on the due date.
d) Equity Shareholders have the right to participate in
the management of the company.
Q306. Depreciation is a
a) Cash Operating Expenditure
b) Non-Cash Operating Expenditure Q312. Which of the following given statement is/are
c) Non- Cash Non-Operating Expenditure correct?
d) Cash Non Operating Expenditure 1. A company can issue redeemable equity shares.
2. A preference share that does not carry the right
of sharing in surplus profits is called Non-
Q307. Which of the following is not included in Cash Participating Preference Share.
and Cash Equivalents? 3. Reserve Capital is also known as Capital
a) Inventories Reserve.
b) Current Investments a) 1 and 2
c) Short-Term Deposits b) 2 and 3
d) Marketable Securities c) 1 and 3
d) Only 2 Q317. X limited spent Rs. 10,00,000 towards the
construction of the office building. It also spent Rs.
50,000 towards construction of temporary store and
Q313. Opening stock is ____________ used the store for building construction purpose. On
a) Debited in Trading A/c completion of building construction the store was
b) Credited in Trading A/c
dismantled and the materials were sold for Rs. 20,000.
c) Credited in Profit & Loss A/c Mr. A, a supervisor was paid Rs. 60,000 as his salary
d) Debited in Profit & Loss A/c during the period of construction and he devoted 2/3rd
of his time for the building construction.
Q314. Which of the following is true about financial The capitalized cost of office building is ____________.
statements? a) Rs 10,00,000
1. Financial statement gives a summary of accounts. b) Rs 11,10,000
2. Financial statements can be stated as recorded facts. c) Rs 10,90,000
a) 1 only d) Rs 10,70,000
b) 2 only
c) Both 1 and 2 Q318. Which of the following is an example of a liability
d) Neither 1 nor 2 ?
a) Creditors
Q315. From the given information, find the value of b) Debtors
Closing stock - c) Cash
Sales - Rs 15,000 d) Building
Opening Stock - Rs 6,000
Purchases - Rs 10,000 Q319. Which of the following will not be included in the
Closing Stock - Rs X Profit and Loss Account?
Cost of Goods sold - Rs 9,000 a) Salaries
Trade Expenses - Rs 4,000 b) Drawings
Gross Profit - Rs Y
c) Rent Received
Net Profit - Rs Z d) Carriage Outwards
a) Rs 9,000
b) Rs 8,000
c) Rs 4,000 Q320. A prepayment of insurance premium will appear
d) Rs 7,000 in the Balance Sheet and in the Insurance Account
respectively as _____________
a) a liability and a debit balance
Q316. Revenue Expenditure wrongly recorded as b) an asset and a debit balance
Capital Expenditure will result in ________________ c) an asset and a credit balance
a) Overstatement of net profit and understatement of d) a liability and a credit balance
assets
b) Understatement of net profit and overstatement of
assets Q321. Which one of the following is not considered to
c) Overstatement of net profit and overstatement of be a subsidiary book in the banks?
assets a) Current account Ledger.
d) Understatement of net profit and understatement of b) General Ledger.
assets c) Loan Ledger.
d) Bills discounted and purchased Ledger.
Q322. Schedule 10 of the balance sheet of a bank Q326. In a computerised accounting system, the
provides the details of ________. framework of storage and processing of data is called
a) Fixed assets. a) Recording environment
b) Current assets. b) Operating environment
c) Investments. c) Computing environment
d) Other assets. d) None of the above
Q323. Which of the following statements is incorrect? Q327. Core banking. Is delivered as a set of integrated
1. Banking Regulation Act has prescribed Form A for core banking components that are then tailored to fit
the format of Balance Sheet. the institution’s individual business requirements.
2. The Govt. has notified that account of the banking These components include
companies shall be closed on 31st March every a) Core bank financial institution infrastructure
year as against 31st December earlier. b) Core bank customer management and customer
overview
a) 1 only c) Core bank payments
b) 2 only d) All of the above
c) Both 1 and 2
d) Neither 1 nor 2
Q328. Which among the following is not amongst the
Q324. Match the Following: benefits of core banking?
Schedule in Form A Related to a) It supports multi-currency operations.
1. Schedule 1 a. Other Liabilities & provisions b) It provides 24x7 operations.
2. Schedule 3 b. Deposits c) It provides improved customer satisfaction.
3. Schedule 5 c. Capital d) it increases profits as customers are charged extra
4. Schedule 7 d. Balances with Banks & Money for core banking.
at call and Short Notice
a) 1-a; 2-b; 3-c; 4-d
Q329. Which of the following CBS systems are
b) 1-a; 2-c; 3-b; 4-d incorrectly matched with their development
c) 1-c; 2-b; 3-d; 4-a companies?
d) 1-c; 2-b; 3-a; 4-d a) BaNCS - Tata Consultancy services
b) Finacle - Wipro
c) Flexcube - Oracle
Q325. Match the Following: d) None of the above
Schedule in Form B Related to
1. Schedule 13 a. Operating Expenses Q330. ___________ provides the same set of services.
2. Schedule 14 b. Profit of sale of Land To customers across all channels come, whether digital
3. Schedule 15 c. Interest Earned or physical. Users can access all banking services via
4. Schedule 16 d. Interest Expended website., Mobile app, Bank, Branch, Call Center or even
a) 1-a; 2-b; 3-c; 4-d social media platforms, such as WhatsApp, Facebook,
b) 1-a; 2-c; 3-b; 4-d Instagram, etc.
c) 1-c; 2-b; 3-d; 4-a a) Omni Channel Banking
d) 1-c; 2-b; 3-a; 4-d b) Neo Banking
c) Multi Banking

d) Retail Banking c) Difference between Current Assets and Fixed Assets.
d) Cash and Bank Balance.
Q331. A ___________ is a bank that operates without

physical branch, i.e., the banking business is conducted Q336. Which of the following will impact the current
ratio?
entirely online.
a) Virtual bank a) Stock acquired for cash
b) Meta bank b) Machinery acquired on credit
c) Neo bank c) Stock sold on credit
d) Debentures converted into equity capital.
d) Digi Bank
Q332. _________ ratios are a measure of the speed Q337. Which of the following statements is incorrect?
with which various accounts are converted into sales or a) Liquidity ratios are calculated to measure the short-
cash. term solvency of the business.
a) liquidity b) Quick assets are defined as those assets which are
b) activity quickly convertible into cash
c) debt c) Quick Ratio is also known as liquid ratio or Acid-test
d) profitability ratio
d) A very high current ratio is good for a business.
Q333. The two basic measures of liquidity are:

a) inventory turnover and current ratio Q338. Which of the following statements is correct?
b) current ratio and liquid ratio a) Solvency ratios are calculated to determine the
c) gross profit margin and operating ratio ability of the business to service its debt in the long
d) current ratio and average collection period run.
b) The Interest Coverage Ratio measures the
relationship between long-term debt and equity.
Q334. Which of the following statements is incorrect? c) The Debt-Equity Ratio refers to the ratio of long-
1. Analysis of data provided in the financial statements term debt to the total of external and internal funds
is termed as financial analysis. (capital employed or net assets).
2. Long-term borrowings are concerned about the d) Debt to capital employed ratio expresses the
ability of a firm to discharge its obligations to pay relationship of proprietor’s (shareholders) funds
interest and repay the principal amount. to net assets
3. Ratios help in comparisons of a firm’s results over a
number of accounting periods as well as with other
business enterprises. Q339. Which of the following given statements is/are
a) 1 only incorrect?
b) 2 only 1. Liquidity ratios measure the long-term solvency
c) 3 only of a concern.
d) None of the above 2. Inventory is a part of liquid assets.
3. The rule of thumb for the acid test ratio is 1:1.
a) 1 and 2
Q335. Working Capital is the ________. b) 2 and 3
a) Capital borrowed from the Banks. c) 2 and 4
b) Difference between Current Assets and Current d) Only 1
Liabilities.
Q340. Which of the following statements is incorrect? 3. Municipalities and Panchayats
a) Activity or Turnover Ratio comprises of Dividend 4. Income Tax Tribunals
Payout Ratio. 5. Artificial Judicial Person
b) Total Assets to Debt Ratio is normally computed for Choose the correct answer using the codes given below
evaluating the solvency of the business. a) 1, 2, 3 and 5
c) A proprietary ratio is a type of Solvency Ratio. b) 2, 3, 4 and 5
d) Ratio analysis helps to understand efficacy of c) 1, 2, 4 and 5
decisions. d) 1, 2 and 5
Q341. Which among the following is not a limitation of Q345. Which among the following categories of income
Ratio Analysis? heads is exempt from income tax?
1. Income from house property
a) No additional data needs to be presented along with
2. Income from agriculture
ratios. 3. Income from professional practice
b) Window dressing of ratios 4. Scholarships received for education
c) Price level changes Choose the correct answer using the codes given below:
d) No fixed standards. a) 2 and 3
b) 1, 3 and 4
c) 2 and 4
Q342. Income tax is based on the ‘Ability-To-Pay’ d) 1, 2 and 4
principle. What does this principle state?
a) Those who spend more should pay more taxes.
Q346. _____________________ denotes the formal
b) Those who earn more should pay more taxes.
accounting mechanism by means of which costs are
c) Those who save more should pay more taxes.
ascertained by recording them in the books of account.
d) Those who invest more should pay more taxes.
a) Costing
b) Cost Analysis
c) Cost Control
Q343. Which among the following statements is d) Cost Accounting
correct?
1. As per the IT Act, any company making a payment is
required to deduct tax at source (TDS) for all the
Q347. Which of the following is/are the correct
payments.
objectives of cost accounting?
2. The provisions of TDS apply to payments like salary,
a) Ascertainment of the cost.
interest, commission, professional fees etc.
b) Determination of Selling Price and Profitability
Choose the correct answer using the codes given below:
c) Cost Reduction
a) 1 only
d) All of the above
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
correct?
1. Out-of-pocket costs are those costs that do not
Q344. Under Section 2 of the Income Tax Act, who
involve cash outlays or require the utilization of
among the following can be treated as a ‘Person’?
current resources.
1. Hindu Undivided Family
2. Implicit Costs are not recorded in the books of
2. Limited Liability Partnership
accounts.
3. All non-manufacturing costs such as general & Q352. ___________________ method is used in mass
administrative expenses, selling and production industries manufacturing standardized
distribution expenses are recognised as period products in continuous processes of manufacturing.
costs. a) Process Costing
a) 1 and 2 b) Job Costing
b) 2 and 3 c) Contract Costing
c) 1 and 3 d) Batch Costing
d) Only 2

incorrect?
Q349. Which of the following is incorrect regarding a) In Standard costing, we only consider these variable
the example of Indirect Costs? costs while calculating the production costs.
a) Lubricating Oil b) Marginal costing is a technique where the firm
b) Consumables compares the costs that were incurred for the
c) Nuts and Bolts production of the goods and the costs that should
d) Timber in Furniture have been incurred for the same.
c) Budgetary control is the preparation of budgets and
analysis of the actual performance of the firm in
Q350. Which of the following constitutes the formula of comparison to the budgeted numbers.
Overheads? d) Both A & B
a) Direct Materials + Direct Labour + Direct Expenses
b) Indirect Materials + Indirect Labour + Indirect
Expenses Q354. In this technique, the separation of costs into
c) Direct Materials + Indirect Labour + Indirect fixed and variable is of special interest and importance.
Expenses This is because _______ costing regards only variable
d) Indirect Materials + Direct Labour + Indirect costs as the cost of the products.
Expenses Which technique is being discussed above?
a) Standard Costing
b) Budgetary Control
Q351. Which of the following statements is/are c) Both A and B
incorrect? d) Marginal Costing
1. Cost bookkeeping is concerned with the
verification of cost accounts.
2. Costing is concerned with the ascertainment of Q355. Which of the following statement is/are correct?
the cost of products, processes, jobs, services, a) Financial accounts show the detailed cost and profit
etc. data for each product line.
3. Cost audit involves maintaining complete b) Maintenance of Cost Accounts is compulsory.
record of costs incurred. c) Cost Accounting provides detailed cost information
a) 1 and 2
to management.
b) 2 and 3 d) Both A and C
c) 1 and 3
d) Only 2

Q356. Which of the following statements is are correct? Q361. Standard Cost is a ______________ cost.
1. Variable Cost is a cost which remain constant a) Pre determined
and do not increase or decrease when volume b) Actual
of production changes. c) Historical
2. Direct Costs are those costs which can be easily d) short term
and conveniently identified with a unit of
product.
3. Indirect Costs cannot be identified with a unit Q362. Which of the following statements is/are
of product incorrect?
a) 1 and 2 1. The limitations of budgetary costing system
b) 2 and 3 have led to the development of standard
c) 1 and 3 costing system.
d) Only 1 2. The deviation of the actual cost or profit or
sales from the standard cost or profit or sale is
known as Mismatch.
Q357. Which of the following statement is correct ? 3. An unfavourable material price variance occurs
a) Cost accounting is a branch of financial accounting. because of Price increase in raw materials.
b) Conversion cost is the aggregate of direct labour, a) 1 and 2
direct expenses and manufacturing overhead. b) 2 and 3
c) Depreciation is an out-of-pocket cost. c) 1 and 3
d) Contract costing is used in oil refineries. d) Only 2
Q358. Which of the following costing relates to the Q363. Which of the following industries uses standard
ascertainment of costs after they have been incurred? costing?
a) Historical Costing a) service
b) Absorption Costing b) process
c) Contract Costing c) manufacturing
d) Both A and C d) All of the above
Q359. Which of the following is not an advantage of

cost accounting ? Q364. Material price variance is calculated by
a) Reveals what is profitable or not profitable _________________.
b) Decision making a) Standard Price * Actual Quantity - Actual Price *
c) Ignores futuristic situation of products cost Actual Quantity
d) Formulating policies b) Standard Price * Actual Quantity - Actual price *
Standard Quantity
c) Actual Price * Actual Quantity - Standard price *
Q360. If Profit is Rs 5000, Overheads are Rs 8000, Sales Standard Quantity
is Rs 26000 then what is the Prime Cost ? d) Actual price * Standard Quantity - Standard price *
a) 3000 Standard Quantity
b) 40000
c) 13000
d) 1500

Q365. Material Usage Variance is calculated by Q369. Calculate the standard yield from the following
_____________________. information:
a) Standard Price * Standard Quantity - Actual Price
* Standard Quantity
b) Standard Price * Actual Quantity - Actual Price * Standard Loss allowed is 10% of input and standard rate
Actual Quantity of scrap realisation is Rs 6 per unit. Actual Output is 440
c) Standard Quantity * Actual Price - Actual Quantity * units.
Actual Price a) 450 units
d) Standard Quantity * Standard Price - Actual b) 550 units
Quantity * Standard Price c) 350 units
d) 250 units
Q366. The standard material required to manufacture

one unit of Product X is 10 kgs. and the standard price Q370. Which of the following statements is/are correct
per kg of material is Rs 25. The cost accounts records, regarding the objectives of Standard Costing?
however, reveal that 11,500 kgs of materials costing Rs a) To provide basis for suitable cost comparisons.
2,76,000 were used for manufacturing 1,000 units of b) To introduce a system of management by
Product X. Calculate the material variances. exception.
Calculate the Material Cost Variance. c) To provide means of performance evaluation.
a) Rs 11500 Favourable d) All of the above
b) Rs 26000 Adverse
c) Rs 37500 Adverse
d) Rs 11500 Adverse Q371. Which of the following statements is/are correct
?
a) Standard Costing serves as a basis for measuring
operating performance and cost control.
Q367. Material Yield Variance is calculated by
b) Standard Costing aids price fixing.
___________________.
c) Standard Costing serves as a basis for inventory
a) Actual rate (Actual Yield - Standard Yield)
valuation.
b) Standard rate (Actual Yield - Standard Yield)
d) All of the above
c) Actual Quantity (Standard Price - Actual Price)
d) Standard Quantity (Standard Price - Actual Price)

incorrect?
1. Production Overhead= Variable Production
correct?
Overhead + Fixed Production Overhead.
1. An unfavourable material usage variance occurs
2. Administration Overhead= Variable
because of less usage than standard of materials.
Production Overhead - Fixed Production
2. There are 3 types of standards.
Overhead.
3. A manufacturing organization sets standards for only
3. Selling Overhead= Variable Selling Overhead -
direct materials.
Fixed Selling Overhead.
a) 1 and 2
a) 1 and 2
b) 2 and 3
b) 2 and 3
c) 1 and 3
c) 1 and 3
d) Only 2
d) Only 2
d) Only 1
Q373. Which of the following statement is correct?
a) Variance Analysis is done for Direct Labour only.
b) Cost Variance may exist due to Price Variance only. Q378. Which of the following statements is/are correct
c) Direct material total variance is also known as regarding the assumptions of marginal costing?
material cost variance. a) All the elements of cost can be divided into fixed
d) Both A and B and variable components.
b) Total fixed cost remains constant at all levels of
output.
Q374. ___________ Variances are those which can be c) Total variable costs varies in proportion to the
controlled by the departmental heads. volume of output.
a) Controllable d) All of the above
b) Uncontrollable
c) Traceable
d) Untraceable Q379. Which of the following statements is correct?
a) Marginal costing is not very useful in situations
where a very small proportion of total cost is
Q375. The deviation between standard and actual cost variable cost.
is known as ______________. b) In many organisations, the splitting of semi-variable
a) Variable Cost Analysis costs into fixed and variable may not be possible
b) Variance Analysis accurately.
c) Linear Trend Analysis c) Valuation of stock, WIP at marginal cost may not
d) Multiple Analysis show the true profit of the organisation.
d) All of the above are true.
Q376. Which of the following constitutes the formula of

Overheads? Q380. Budgets must be prepared for a ___________.
a) Fixed a) definite period
b) Variable b) indefinite period
c) Semi Variable c) not less than a period of 24 months
d) Both A and B d) not less than a period of 36 months
Q377. Which of the following statements is/are Q381. ______________ also known as subsidiary
incorrect? budgets.
1. Marginal costs is taken as equal to Fixed a) Functional Budget
Overheads. b) Master Budget
2. Marginal Costing is also known as Variable c) Sales Budget
Costing. d) Either A or B
3. Marginal cost is calculated as the total
expenses required to manufacture one
additional good. Q382. __________________ is a practice of preparing
a) 1 and 2 the budget based on the evaluation of the productivity
b) 2 and 3 of the different operations in an organization.
c) 1 and 3 a) Performance Budgeting
b) Zero Based Budgeting Q387. Which of the following taxation systems imposes
c) Responsibility Accounting a flat tax rate irrespective of the income of an
d) None of the above individual?
a) Progressive taxation
b) Regressive taxation
Q383. Which of the following statement is/are correct? c) Proportional Taxation
a) A master budget is also known as cash budget. d) All of the above
b) Budgetary Control does not facilitate Management
by Exception
c) Budgeting is an expensive process Q388. With the passage of which constitutional
d) All of the above amendment act the parliament gave approval to the
Goods and services act?
a) 98th Constitutional amendment act
Q384. Production Overhead Budget includes b) 99th Constitutional amendment act
______________ c) 100th Constitutional amendment act
a) Cost of indirect material d) 101st Constitutional amendment act
b) Cost of indirect labour
c) Cost of indirect expenses
d) All of the above
Q389. Which of the following state indirect taxes has
been subsumed under Goods and Services Tax?
Q385. Which of the following statements is/are 1.Luxury tax
incorrect? 2.Entry tax
1. Activity Ratio= (Standard hours of actual 3.Purchase tax
production / Actual hours worked) * 100 4.Tax on advertisement.
2. Capacity Ratio= (Actual hours worked / a) 2, 3 and 4
Budgeted hours) * 100 b) 1, 2, 3 and 4
3. Efficiency Ratio= (Standard hours for actual c) 3 only
output / Budgeted hours) * 100 d) 1, 2 and 3
a) 1 and 2
b) 2 and 3
c) 1 and 3 Q390. GST is a consumption of goods and service tax
d) Only 2 based on?
a) Dividend
b) Development
Q386. Which of the following is one of the c) Duration
disadvantages of the progressive taxation method? d) Destination
a) Discourages more earnings.
b) It supports low growth and development.
c) Opens door for tax evasion Q391. What does “I” stands for in IGST?
d) All of the above a) International
b) Internal
c) Integrated
d) Intra

c) Only 4
d) Only 2
Q392. A bond that pays no interest and trades at a
discount to its face value is called __________ .
a) Coupon bonds
b) Zero coupon bond
c) Fixed Rate Bonds Q397. There are two bonds. One with maturity of 5
d) Floating Rate Bonds years and other with maturity of 10 years. The Face
value and Coupon rate are same on both the bonds. If
Q393. The yields on government bonds are usually less the yield decreases by 2% which bond will have larger
than yields on corporate bonds of similar maturity increase in the price?
because of which of the following reasons? a) Bond with 5 years Duration would have larger
a) Corporate bonds have greater maturity than that of increase in price
a government bonds b) Bond with 10 years Duration would have larger
b) Governments are non-profit-making institutions increase in price
c) Government bonds are riskier than corporate bonds c) Both the bonds will have same increase in price as
d) Government bonds are less risky than corporate both have same coupon rate and Face Value
bonds d) There will be no change in the bond's price
Q394. Which of the following is not a variable used in Q398. If you have a strong gut feeling that Interest rates
will decrease in coming times and you want to make
the pricing of bonds?
a) Time to maturity maximum profits by selling Bonds, then which of the
b) Quoted price following Bonds will give you maximum appreciation ?
a) Low Coupon and Low Maturity
c) Coupon payments
d) Yield to maturity b) High Coupon and High Maturity
c) Low Coupon and High Maturity
d) High Coupon and Low Maturity
Q395. What is assumption made while calculating Yield

to Maturity?
Q399. An 12% bond of Rs. 5000 has a maturity period
a) The interest rate will be the same as coupon rate
b) The coupon payments would be re-invested further of 5 years. The current price of bond is 4050. If the YTM
at the same rate as the current yield of the bond is 14% then find its duration ?
c) Both A and B a) 4.5 yrs
d) The interest rate would be floating in nature b) 2.5 yrs
c) 2 yrs
d) 3 yrs
Q396. Which among the following is the odd one out?

1. Puttable Bonds
2. Convertible Bonds Q400. Ram and Sham are 2 friends. Ram bought a bond
of 1000 with coupon payment of 6% annually which
3. Callable Bonds
4. Zero Coupon Bonds matures 3 years from now. Sham bought a bond of
a) 2 & 4 1000 with semi-annual coupon payment of 6% annual
b) 1 & 3 rate which also matures 3 years from now. If the

discount rate is assumed to be 5% then which of the
following statements is true?
a) Ram would be getting more money than Sham in
present value terms
b) Ram would be getting same money as Sham in
present value terms
c) Ram would be getting less money than Sham in
present value terms
d) Ram would get exactly twice the amount of money
sham will get in present value terms

SOLUTIONS
Question No. Answer Question No. Answer Question No. Answer Question No. Answer
1 B 101 D 201 C 301 D
2 C 102 B 202 C 302 A
3 A 103 B 203 A 303 B
4 B 104 C 204 D 304 A
5 A 105 C 205 B 305 C
6 A 106 D 206 A 306 B
7 D 107 D 207 D 307 A
8 D 108 A 208 C 308 C
9 A 109 A 209 B 309 C
10 B 110 C 210 A 310 B
11 C 111 C 211 C 311 B
12 D 112 B 212 D 312 D
13 A 113 C 213 D 313 A
14 B 114 B 214 A 314 C
15 D 115 D 215 D 315 D
16 B 116 D 216 D 316 C
17 C 117 B 217 C 317 D
18 D 118 D 218 D 318 A
19 D 119 A 219 B 319 B
20 D 120 B 220 A 320 C
21 A 121 A 221 B 321 B
22 C 122 B 222 A 322 A
23 B 123 C 223 D 323 D
24 C 124 A 224 C 324 D
25 C 125 C 225 D 325 C
26 B 126 C 226 D 326 B
27 D 127 A 227 D 327 D
28 C 128 A 228 C 328 D
29 B 129 A 229 B 329 B
30 B 130 C 230 A 330 A
31 D 131 B 231 B 331 C
32 D 132 A 232 D 332 B
33 C 133 C 233 C 333 B
34 A 134 B 234 D 334 D
35 C 135 A 235 D 335 B
36 C 136 C 236 A 336 B
37 A 137 B 237 D 337 B
38 A 138 B 238 C 338 A
39 B 139 A 239 D 339 A
40 D 140 D 240 A 340 A
41 B 141 D 241 B 341 A
42 A 142 D 242 A 342 B
43 A 143 B 243 C 343 B
44 A 144 A 244 D 344 A
45 A 145 C 245 A 345 C
46 A 146 D 246 A 346 D
47 C 147 B 247 C 347 D
48 A 148 B 248 D 348 B
49 A 149 C 249 C 349 D
50 D 150 B 250 D 350 B
51 C 151 D 251 B 351 C
52 A 152 C 252 C 352 A
53 A 153 A 253 C 353 D
54 D 154 D 254 D 354 D
55 B 155 B 255 D 355 C
56 B 156 D 256 D 356 B
57 B 157 A 257 C 357 B
58 C 158 B 258 D 358 A
59 C 159 B 259 C 359 C
60 B 160 A 260 D 360 C
61 C 161 D 261 D 361 A
62 B 162 B 262 D 362 A
63 C 163 C 263 D 363 D
64 D 164 A 264 C 364 A
65 A 165 B 265 A 365 D
66 C 166 A 266 D 366 B
67 B 167 D 267 D 367 B
68 A 168 A 268 C 368 D
69 C 169 B 269 A 369 A
70 C 170 B 270 D 370 D
71 C 171 D 271 B 371 D
72 A 172 C 272 A 372 B
73 C 173 C 273 D 373 C
74 A 174 D 274 C 374 A
75 D 175 B 275 D 375 B
76 D 176 A 276 A 376 B
77 B 177 A 277 B 377 D
78 C 178 A 278 D 378 D
79 A 179 B 279 C 379 D
80 A 180 C 280 D 380 A
81 D 181 B 281 A 381 A
82 D 182 C 282 B 382 A
83 D 183 C 283 B 383 C
84 D 184 A 284 B 384 D
85 B 185 C 285 B 385 C
86 A 186 C 286 A 386 D
87 B 187 A 287 D 387 C

88 D 188 D 288 D 388 D
89 D 189 B 289 A 389 B
90 C 190 C 290 A 390 D
91 C 191 D 291 B 391 C
92 C 192 D 292 A 392 B
93 A 193 B 293 C 393 D
94 C 194 D 294 C 394 B
95 C 195 B 295 D 395 B
96 B 196 C 296 B 396 C
97 D 197 B 297 A 397 B
98 B 198 B 298 D 398 C
99 D 199 A 299 D 399 A
100 B 200 C 300 D 400 B

Module-A
1. Which of the following statements regarding a Bank is incorrect?

a) Deposits should only be for lending and investment purposes.
b) Co-operative Societies accepting deposits from their members are not considered banks.
c) The deposits accepted by Banks should only be from the public.
d) Acceptance of deposits can be in a form other than money.
Answer: d)
2. In case of an overdraft to a Bank’s Current A/C the customer becomes the _____ and the bank is
the_______.
a) Debtor, Creditor
b) Creditor, Debtor
c) Beneficiary, Trustee
d) Principal, Agent
Answer: a)
3. A customer accidentally left his bag and documents in the bank. In this case the bank will be holding
the customer’s belongings in the capacity of__________
a) Agent
b) Trustee
c) Lessor
d) Creditor
Answer: b)
4. When a customer deposits certain valuables, bonds, securities or other documents with the bank, for
their safe custody, the bank besides becoming a trustee, also becomes a____________
a) Lessor
b) Bailee
c) Indemnifier
d) Agent
Answer: b)
5. A contract by which one party promises to save the other from loss caused to him by the conduct of
the promisor himself is a contract of _______.
a) Trust
b) Indemnity
c) Hypothecation
d) Principal
Answer: b)
6. How is pledge different from mortgage and hypothecation?

a. In case of pledge the collateral remains in the possession of the pledgee.
b. Only immoveable properties are kept as security in case of pledge.
c. Gold can’t be pledged but it can be mortgaged and hypothecated.
d. Only long-term loans are available against pledged securities.
Answer: a)
7. A customer who has a credit balance in his/her bank a/c will be a _____ of the bank.
a) Creditor
b) Debtor
c) Principal
d) Trustee
Answer: b)
8. _______ accounts are used when a party wants to exercise some control on the use of the funds
received in the account in the name of another party.
a) Trusteeship
b) Escrow
c) Executor
d) Trading
Answer: b)
9. If a Bank pays for the utility bills on the behalf of the customer, he is acting in the capacity of a
______.
a) Principal
b) Agent
c) Indemnifier
d) Debtor
Answer: b)
10. The bank provides safe deposit lockers to the customers for the use on lease basis. The customer
acts in the capacity of__________.
a) Lessee
b) Lessor
c) Bailor
d) Creditor
Answer: a)
11. Demand deposits can be withdrawn ______

a) Expiry of deposit period
b) On demand
c) By closing the account
d) By sanction
Answer: b)
12. Which of the following is not a type of Time Deposits?

a) Fixed Deposits
b) Recurring Deposits
c) Flexi Recurring Deposits
d) Savings Account
Answer: d)
13. Overdue deposits are a type of_______.

a) Demand deposits
b) Time deposits
c) Both a) and b)
d) Neither a) nor b)
Answer: a)
14. Unclaimed deposits are a type of______.

a) Demand deposits
b) Time deposits
c) Both a) and b)
d) Neither a) nor b)
Answer: a)
15. Unclaimed Deposits are transferred to ________ maintained by RBI.

a) Investor Education Fund
b) Settlement Guarantee Fund
c) Depositor Education and Awareness Fund
Answer: c)
16. Which of the following is not a stage in Money Laundering?

a) Placement
b) Raising
c) Layering
d) Integration
Answer: b)
17. RBI has issued the KYC guidelines under __________________-and any contravention of the same
will attract penalties under the relevant provisions of the Act.
a) Section 34 (B) of the Reserve Bank of India Act, 1934
b) Section 38 (C) of the Prevention of Money Laundering Act,2002
c) Section 35 (A) of the Banking Regulation Act, 1949
d) Section 24 of the Securities and Exchange Board of India Act,1992
Answer: c)
18. ____ is the global money laundering and terrorist financing watchdog which sets international
standards that aim to prevent these illegal activities and the harm they cause to society
a) United Nations Office on Drugs and Crime (UNODC)
b) G-20
c) United Nations Security Council (UNSC)
d) Financial Action Task Force (FATF)
Answer: d)
19. Based on FATF recommendations, In India Prevention of Money Laundering Act, 2002 was enacted
under which obligations were stipulated on financial sector players and certain non-finance
businesses termed as___________
a) Reporting Entities
b) Informant Entities
c) Enforcement Directorate
d) Service Institutions
Answer: a)
20. The ____________ is a multi-disciplinary organization mandated with investigation of offence of

money laundering and violations of foreign exchange laws in India.
a) Financial Intelligence Unit
b) Directorate of Enforcement
c) Income Tax Department
d) Reserve Bank of India
Answer: b)
21. __________ is the central, national agency responsible for receiving, processing, analyzing and
disseminating information relating to suspect financial transactions to enforcement agencies and
foreign FIUs.
a) Financial Intelligence Unit - India
b) Enforcement Directorate
c) Reserve Bank of India
d) Finance Ministry
Answer: a)
22. Section-45 of Prevention of Money Laundering Act,2002 stipulates that all offences under PMLA are
deemed to be__________ and _________.
a) non-cognizable, non-bailable
b) cognizable, non-bailable
c) cognizable, bailable
d) non-cognizable, bailable
Answer: b)
23. Which of the following statement regarding punishment under PMLA,2002 is incorrect?
a) The minimum punishment for money laundering offence is not less than 3 years and but up to 7
years.
b) Offender under PMLA can be fined maximum up to Rs 10 lakhs or 5 times the amount of money
involved in the crime.
c) In cases connected with offences under Narcotics Drugs and Psychotropic Substances Act the
imprisonment may extend up to maximum 10 years
d) All the options are correct
Answer: b)
24. According to PMLA who among the following will be defined as "client"?
a) A person who is engaged in a financial transaction with a reporting entity.

b) A person on whose behalf the person who engaged in the transaction is acting.
c) The person having continuous financial relationship with the reporting entity.
d) Both A and B
Answer: d)
25. For the purpose of KYC requirements, a bank needs to includes persons availing which of the
following service?
a) Opening a bank account
b) Third party product such as Mutual Fund
c) Stand Alone Remittance Facility
d) All of the above
Answer: d)
26. Which of the following statements regarding KYC is incorrect?

a) It is to be approved by the Board of Directors.
b) It should be reviewed at least once in a year.
c) The Designated Director/Principal Officer is responsible for keeping the KYC policy updated.
d) The bank needs to obtain introduction for a new customer from an existing account holder or from a
staff member.
Answer: d)
27. Under PMLA the Reporting Entities are obligated to maintain records of all transactions for
_________from the date of transaction.
a) 3 years
b) 7 years
c) 5 years
d) 10 years
Answer: c)
28. The Bank is obligated to maintain the identity documents of clients and beneficials owners for a
period of _________ from the date of closure of accounts or end of relationship, whichever is later.
a) 2 years
b) 5 years
c) 7 years
d) 10 years
Answer: b)
29. Based on the risk perception of the bank, customers are classified into how many risk categories?
a) 3
b) 4
c) 6
d) 2
Answer: a)
30. Who among the following is not a high/medium risk category customer?
a) Politically exposed Persons
b) High Net Worth Individuals
c) Businesses with high turnover
d) Individuals with easily identifiable identities and source of wealth
Answer: d)
31. Who among the following is not a low-risk customers?

a) Salaried employees
b) People belonging to lower economic strata of the society
c) Government owned companies
d) Purdahnashin
Answer: d)
32. Which of the following is incorrect regarding KYC updation?

a) Updating KYC of Low-Risk Customers: Every 10 years.
b) Updating KYC of Medium Risk Customers: Every 8 years.
c) Updating KYC of High-Risk Customers: Every 2 years
d) All are correct
Answer: a)
33. Review of risk categorization of customers is carried out at least every _______ based on
transactions carried out by customers.
a) 3 months
b) 6 months
c) 12 months
d) 18 months
Answer: b)
34. The ____________ is responsible for timely submission of CTR, STR and reporting of counterfeit
notes to FIU-IND.
a) Designated Director
b) Branch Manager
c) Principal Officer
d) Senior Accountant
Answer: c)
35. Countries that are considered safe haven for supporting terror funding and money laundering are
put in the FATF ________ list.
a) Black
b) Red
c) Grey
d) White
Answer: c)
36. Foreign Account Tax Compliance Act has been enacted by which of the following country?
a) United Kingdom
b) India
c) United States of America
d) Australia
Answer: c)
37. Non-Profit Organisation Report (NTR) includes transactions regarding receipts by non-profit
organisations of what value?
a) Rs 50 lakh or more
b) Rs 15 lakh or more
c) Rs 20 lakh or more
d) Rs 10 lakh or more
Answer: d)
38. Which date of the succeeding month should the CTR for each month be submitted to FIU-IND as part
of PMLA rules?
a) 7th
b) 10th
c) 15th
d) Last working day
Answer: c)
39. Banks are required to submit this report to FIU-IND if any suspicious transaction noticed by them,
within 7 days of establishing suspicion.
a) STR
b) CTR
c) NTR
d) CBWTR
Answer: a)
40. Cross Border Wire Transfer Report (CBWTR) reports all the transactions with cross border transfers of
more than _________ or equivalent where either the origin or destination of fund is in India.
a) Rs 5 lakh
b) Rs 10 lakh
c) Rs 2.5 lakh
d) Rs 7.5 lakh
Answer: a)
41. Consider the following statements regarding Counterfeit Currency Report (CCR)-
1. Banks are required to report cash transactions, where forged or counterfeit currency notes or bank
notes have been used as genuine if the value of transaction exceeds Rs 2000.
2. The report is submitted within 7 days of reporting of the forged currency transaction.
3. The report includes all transactions where any forgery of a valuable security or a document has taken
place.
Which of the above statement(s) is/are correct?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
42. Which of the following statement correctly defines Correspondent banking?

a) These are individuals/entities engaged by a bank in India for providing banking services in unbanked
/ under-banked geographical territories.
b) It is an arrangement under which one bank holds deposits owned by other banks and provides
payment and other services to those respondent banks
c) It allows banks to bring their services directly to users rather than requiring them to visit a physical
branch
d) It is a payment service that allows a bank customer to use Aadhaar as his/her identity to access
his/her Aadhaar enabled bank account and perform basic banking transactions like balance enquiry,
cash withdrawal, remittances through a Business Correspondent.
Answer: b)
43. An account held by one bank for another is referred to by the holding bank as a __________, or our
account on your books.
a) vostro account
b) correspondent account
c) nostro account
d) holder account
Answer: c)
44. Which of the following statement best defines a shell bank?

a) A bank which has no deposits by the public.
b) A bank which is receiving deposits but is not involved in any lending or investment.
c) A bank which has its origin in a tax-haven country.
d) A bank that has no physical presence in the country in which it is incorporated and licensed
Answer: d)
45. Which of the following is not an exception to the secrecy obligations of banks regarding the
information received from the customers?
a) Where disclosure is under compulsion of law
b) Where there is a duty to the public to disclose
c) The interest of bank requires disclosure
d) When the information is demanded by the spouse
Answer: d)
46.Which of the following statement correctly explains the 'Placement' stage of Money Laundering?
a) Inject the “dirty money” into the legitimate financial system.
b) Conceal the source of the money through a series of transactions and bookkeeping tricks.
c) The laundered money is withdrawn from the legitimate account to be used for whatever purposes
the criminals have in mind for it.
d) Use money for the purposes of carrying out illegal acts.
Answer: a)
47. Which of the following are the stages of Financing of terrorism?

1. Raising
2. Moving
3. Integration
4. Structuring
5. Storing
6. Using
Choose the correct code-
a) 2,3,4 and 6
b) 1,3,4 and 5
c) 3,4,5 and 6
d) 1,2,5 and 6
Answer: d)
48. Which of the following steps can be taken by the FIU against a bank for non-compliance of PMLA?
a) Issue a written warning
b) Direct to take specific remedial measures
c) Impose monetary penalty
d) All of the above
Answer: d)
49. KYC compliance procedures and operational norms also apply to branches of banks located abroad.
In case there is variance in KYC/AML standards prescribed by the RBI and the host country regulator,
branches are required to adopt
a) the more lenient regulation of the two.
b) the more lenient stringent of the two.
c) the regulations framed through bilateral treaty.
d) the regulations framed by RBI.
Answer: b)
50. Which of the following is incorrect regarding norms to be included in Customer Acceptance Policy?
a) No A/c is opened in anonymous or fictitious/benami name.
b) In case of Joint A/c Customer Due Diligence is to be carried only for the primary account holder.
c) No A/c is to be opened where appropriate Customer Due Diligence measured can't be applied.
d) A customer can be allowed to act on behalf of another person/entity.
Answer: b)
Module-B
1. Consider the following statements regarding borrowing by a minor individual-

1. Contract entered by a minor is void.
2. If a bank lends money to a minor to meet the expenses of purchasing necessities, then such loan
can’t be recovered.
Which of the above statement(s) is/ are incorrect?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b)
2. Who among the following is competent to enter a contract according to the Indian contract act
1872?
a) Minor
b) Not of sound mind
c) Purdahnashin Woman
d) All of the above
Answer: c)
3. Which of the following statement(s) is/are correct regarding a Hindu Undivided Family?
1. In Mitraksha Law the right over ancestral property is by succession.
2. In Dayabhag Law the right over ancestral property is by survivorship.
3. Hindu Succession Act applies to Hindus, Sikhs, Parsis and Jains
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: a)
4. Consider the following statements regarding Private company?

1. Shares are freely transferrable.
2. Limits the number of members to 200.
3. Prohibits invitation to public to subscribe for any securities of the company.
a) 1 only
b) 2 and 3
c) 1 and 3
d) 2 only
Answer: b)
5. _______ is the charter of the company, and enables the shareholders, creditors, and those dealings
with the company to know its permitted range of business.
a) Memorandum of Understanding
b) Article of Association
c) Certificate of Incorporation
d) Common seal
Answer: a)
6. Which of the following is a Non-Fund Based Credit Facility?

1. Bill Finance
2. Bank Guarantee
3. Letter of Credit Facility
4. Overdraft
5. Acceptance Facility
a) 1, 2 and 3
b) 2,3,4 and 5
c) 2,3 and 5
d) All of the above
Answer: c)
7. Consider the consider the following statements regarding the working capital of a company.
1. Investment in these assets represent the part of capital which is blocked on permanent or fixed
basis.
2. The networking capital should be lesser than 1:1 to ensure sufficient liquidity and availability of
working funds.
Which of the above statement(s) is/are incorrect?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
8. M/s. XYZ has an average holding period for stocks and duration for creditors and debtors are as given
below.
 Procurement of raw material- 30 days
 Conversion Time- 15 days
 Average time of holding finishes goods- 15 days.
 Average collection period- 30 days
Its annual turnover is Rs 70,00,000 and annual operating expenses are Rs 60,00,000. The working
capital requirements will be?
a) 10 lakhs
b) 20 lakhs
c) 15 lakhs
d) 25 lakhs
Answer: c)
9. Consider the following statements regarding sources of finance for a company-

1. Equity Shareholders get a fixed rate of dividend every year.
2. Debentures can be converted into equity shares, but equity shares cannot be converted into
debentures.
3. Preference shareholders are given dividend after the dividend is paid to equity shareholders.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
10. The exposure of a bank to the capital markets in all forms should not exceed _________of its net
worth as on March 31 of the previous year.
a) 25 %
b) 40%
c) 50%
d) 75%
Answer: b)
11. The loan sanctioned by banks against gold should not exceed ________ of the value of gold
ornaments and the jewellery.
a) 40%
b) 50%
c) 75%
d) 80%
Answer: c)
12. _________ is a mode of providing security to a banker for an advance. It is transfer of a right
property or a debt.
a) Lien
b) Set-off
c) Assignment
d) Hypothecation
Answer: c)
13. Following cases set off right will not be available to the banker-
1. Loan in the name of guardian and deposit in the name of minor operated by guardian.
2. Loan in the name of trustee and deposit in the name of trust.
3. Loan in the name of one of the partners and deposit in the name of partnership firm.
4. Loan in the name of proprietorship firm and deposit in the name of proprietor.
a) 1,2 and 3
b) 2,3 and 4
c) 1,3 and 4
d) All of the above
Answer: a)
14. ____means bailment of goods for purpose of providing security for payment of debt or performance
of a promise.
a) Hypothecation
b) Pledge
c) Lien
d) Mortgage
Answer: b)
15. Which of the statement(s) is or correct?

1. Pawnee has right of foreclosure.
2. Mortgagee has no right of foreclosure.
3. Under foreclosure the ownership of the property mortgaged against the loan is transferred over to
the lender who can legally auction the foreclosed property, selling it to the highest bidder to recover
the loan amount.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) 3 only
Answer: d)
16. A _________is one where the bank or the internal or external auditors or the RB inspection has
identified the loss, but the amount has not been written off wholly.
a) Substandard assets
b) Doubtful assets
c) Loss assets
d) Non-performing asset
Answer: c)
17. Consider the following statements regarding Asset Reconstruction Company-

1. It obtains certificate of registration from SEBI.
2. It has net owned funds not less than 500 crores on an ongoing basis.

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: d)
18. The insolvency and Bankruptcy Code provisions applied to which of the following-
1. A company incorporated under the Companies Act 2013 and not under any previous law.
2. Partnership firms
3. Proprietorship firms
4. Personal guarantors to corporate debtors
a) 1,2 and 3
b) 2,3 and 4
c) 1,3 and 4
d) All of the above
Answer: b)
19. According to the Law of Limitation what is the period of limitation for filing an appeal in High Court
against the judgement of a lower court from the date of decree-
a) Ninety days
b) Thirty Days
c) Sixty Days
d) Three years
Answer: a)
20. Which of the following statement(s) regarding an indemnity contract is/are correct?
a) In an indemnity the risk is contingent and not subsisting.
b) There are only 2 parties to a contract.
c) It covers only the actual loss suffered caused by an event mentioned in the contract.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above
Answer: d)
21. Which of the following statement(s) is/are correct?

1. Law doesn’t debar a married woman from seeking advance from a bank, but husband will not be
liable for her borrowings.
2. An illiterate person has the capacity to enter into a valid contract.,
3. A convicted person cannot enter into a contract while undergoing sentence.

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: d)
22. Which of the following entities are not a partnership firm?

1. Association
2. Club
3. HUF
4. Co-ownership

a) 1,2 and 3
b) 2, 3 and 4
c) 1,2 and 4
d) All of the above
Answer: d)

1. Clubs, Societies, and other non-trading associations can enter into transactions without
incorporation if provided by the byelaws of such an organization.
2. In Limited Liability partnership the liability of partners is limited to their agreed contribution in the
LLP.
a) 1 and 2
b) 1 only
c) 2 only
d) Both 1 and 2
Answer: c)
24. Which of the following is a Fund—based credit facility?

1. Overdrafts
2. Demand Loans
3. Term Loans
4. Bill Finance
5. Bank Guarantee
6. Letter of Credit facility

a) 1,2,3,4
b) 4,5,6
c) 1,2,4,5
d) All of the above
Answer: a)
25. Which of the following statement(s) is/are incorrect regarding operating cycle?
1. It refers to the time it takes a company to buy goods, sell them and receive cash for the sale of
said goods.
2. It denotes time taken for a company to turn its inventories to cash.
3. The operating cycle is generally the same in different industries.
a) 1 and 3
b) 2 only
c) 3 only
d) 2 and 3
Answer: c)
26. Which of the following statement(s) is/are correct regarding working capital?
1. Working capital requirements vary for different industries.
2. It is fixed in nature.
3. Inadequate working capital results in production interruptions.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
27. Amar overdrew his account and there was no written contract for an overdraft. The bank demanded
repayment of the money overdrawn with interest. The customer refused to pay interest. The bank
therefore filed a suit for recovery of the money overdrawn with interest. What should be the court
verdict?
a) There is no need for express contract for an overdraft and the borrower should repay the money
with interest as there is an implied contract for an overdraft.
b) There is no express contract, so the borrower is under no obligation to pay the overdraft money
back.
c) There is no express contract so the borrower is not obligated to pay the interest but should payback
the principal amount
d) There is no express contract so the borrower is not obligated to pay the principal amount but should
pay the interest to the bank.
Answer: a)
28. A firm was enjoying temporary overdraft facility to a limit of ₹5000 and for a period of 4 years. No
document was executed nor was a security furnished. The bank unilaterally without notice
terminated the facility with the result that a cheque drawn by the firm was dishonoured by the bank
on the ground that there was so insufficient balance in the account. The firm claimed damages for
wrongful dishonour of the cheque. A court case was filed. What should be the court verdict?
a) It was a facility provided by the bank without contract, so the bank has all the right to stop this
facility.
b) The overdraft facility was under an implied contract and the bank has no right to terminate overdraft
facility without notice.
c) the customer should have checked with the bank before drawing the cheque so the customer cannot
claim losses.
d) The overdraft is a temporary facility and cheques can’t be drawn on an overdrawn account.
Answer: b)
29. Which of the following statement(s) is/are incorrect regarding a Self-Help Group?
1. If SHG is not in default, some members being defaulter should not stop the bank from financing the
SHG.
2. Credit information reporting is not done for SHG financing.
3. Savings Bank account can be opened for SHGs only if they are registered.
4. The bank can decide the interest rates for SHGs as per regulatory guidelines.
a) 1 and 3
b) 2 and 3
c) 1,2 and 4
d) 1,3 and 4
Answer: b)
30. Help groups help in development of the poor through which of the following benefits
a) Mobilising resources of individual members for collective development.
b) Uplifting living conditions of poor.
c) Creating saving habits
d) All of the above
Answer: d)
31. The MUDRA has 3 schemes for providing assistance at different stages. The _____scheme covers
loans up to Rs 50,000 and up to Rs 5,00,000.
a) Tarun
b) Kishor
c) Shishu
d) Vaibhav
Answer: b)
32. What are the following statements are correct regarding Pradhan Mantri Suraksha Bima yojana?
1. The scheme is available to people in the age group of 18 to 65 years with the bank account who give
their consent to join.
2. The risk coverage under the scheme is ₹2,00,000 for accidental death and full disability.
3. The premium of ₹20 per annum is to be deducted from the account holders bank account through
auto debit facility in one installment.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: b)
33. Consider the following statement(s) regarding Pradhan Mantri Jan Dhan Yojana-
1. A person without Officially Valid Documents can open a small account.
2. No overdraft facility is available in PMJDY.
3. Minimum age of applicant is 16 years.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: b)
34. What is the criteria of classifying as medium enterprise?

a) Where the investment in plant and machinery or equipment does not exceed one crore rupees and
turnover does not exceed five crore rupees.
b) Where the investment in plant and machinery or equipment does not exceed ten crore rupees and
turnover does not exceed fifty crore rupees.
c) Where the investment in plant and machinery or equipment does not exceed fifty crore rupees and
turnover does not exceed two hundred fifty rupees.
d) Where the investment in plant and machinery or equipment does not exceed a hundred crore rupees
and turnover does not exceed five crore rupees.
Answer: c)
35. _________ is an electronic platform for facilitating/discounting of trade receivables of MSMEs

through multiple financers.
a) Bill Discounting System
b) Trade Receivables Discounting System
c) Performance and Credit Rating Scheme
d) Credit Guarantee Fund Scheme
Answer: b)
36. The PM SVANidhi scheme is available to which of the following category of people?
a) BPL
b) Street Vendors
c) Farmers
d) Unskilled Labour
Answer: b)
37. Which of the following statement(s) is/are correct regarding NBFCs?

1. They cannot accept term deposits.
2. Their activities include hiring, leasing, infrastructure finance, venture capital finance, housing
finance, and so on.
3. For all Companies currently applying for registration as a NBFC, the minimum Net Owned Funds
requirement is INR 10 Crore
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: b)
38. An NBFC can be registered under which of the following acts?

a) Chit Funds Act
b) Companies Act,2013
c) RBI Act
d) All of the above
Answer: d)
39. Which of the following facilities are available in the Kisan Credit Card scheme?
1. Loan
2. Insurance coverage
3. Assistance in the purchase of fertilizers, seeds, etc.
4. Operate KCC account through bank ATMs.
a) 1 and 2
b) 2 and 3
c) 1, 3 and 4
d) All of the above
Answer: d)
40. Which of the following has been categorized as a Priority Sector for Priority Sector Lending?
1. MSME
2. Export Credit
3. Education
4. Social Infrastructure
5. Renewable Energy
a) 1,2 and 3
b) 2, 3, 5
c) 1,3,5
d) All of the above
Answer: d)
41. Which of the following statements is correct regarding Information Utilities (IU) under The Insolvency
and Bankruptcy Code?
1. It collects, collates and disseminates financial information.
2. They maintain electronic databases on lenders and terms of lending.

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
42. Corporate Insolvency Resolution Process can be initiated by which of the following-
1. financial creditor
2. operational creditor
3. corporate applicant
4. Corporate debtor
a) 1 and 2
b) 1,2 and 3
c) 2,3 and 4
d) All of the above
Answer: b)
43. Suppose a bank’s customer were to import capital goods where the installment is to be paid over a
5-year period. In the meanwhile, the chances of importers going bankrupt may rise. The exporter
could demand surety for future payments. In this situation the importer should ask for ___________
from his/her bank which will assure the exporter of the timely payments of future payments.
a) Indemnity
b) Deferred Payments Guarantee
c) Loan
d) Letter of credit
Answer: b)
44. In international trade both buyer and seller are unaware of each other’s financial position and deal
through their bankers. The seller should have confidence that the buyer will pay for the goods when
due. In this case the buyer can provide a _________ to the supplier for assuring him of payment.
a) Letter of credit
b) Indemnity
c) Advance Payment
d) Income tax statements
Answer: a)
45. Identify the document with the help of following statements-

1. To ship any goods, it is required and acts as a receipt and a contract.
2. It shows that the carrier has received the freight as described and is obligated to deliver that freight
in good condition to the consignee.

a) Deferred Payments Guarantee
b) Letter of credit
c) Bill of Lading
d) Insurance Documents
Answer: c)
46. This type of Letter of Credit not only permits pre shipment advance but also permits advances to the
exporter to cover storage at the port of shipment.
a) Red Clause
b) Black Clause
c) Brown Clause
d) Green Clause
Answer: d)
47. Which of the following statements are correct regarding Clean Bills?
1. This document is not supported by documents of title to goods.
2. These are normally drawn to effect discharge of a debt or claim.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
48. Mastercard, RuPay, Visa are example of_______

a) Card Issuers
b) Merchants
c) Merchant Acquirers
d) Credit Card Associations
Answer: d)
49. Which of the following statement(s) is/are correct regarding personal loan?
1. The bank will not question you about the end use when you are applying for a Personal Loan.
2. It does not require any collateral or security such as property, shares or gold.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
50. For calculating Priority sector targets, we use CEOBE. What does it stand for?
a) Certificate of Eligibility for Outward Bound Endorsement
b) Certificate of Eligibility Amount of Off-Balance Sheet Exposure
c) Credit Equivalent Amount of Outward-Bound Endorsement
d) Credit Equivalent Amount of Off-Balance Sheet Exposure
Answer: d)
51. What is the target of Priority sector lending for Small Finance Banks?
a) 40 per cent of ANBC or CEOBE whichever is higher.
b) 18 per cent of ANBC or CEOBE, whichever is higher; out of which a target of 10 % is prescribed for
Small and Marginal Farmers (SMFs)
c) 75 per cent of ANBC or CEOBE whichever is higher.
d) 12 % of ANBC or CEOBE, whichever is higher
Answer: a)
52. Which of the following category of Bank are required by RBI to achieve PSL targets?
1. Regional Rural Banks
2. Domestic commercial banks
3. Small Finance Banks
4. Primary Urban Co-operative Bank

a) 1,2 and 3
b) 2,3 and 4
c) 2 and 4
d) All of the above
Answer: d)
53. Priority sector loans to the which of the following borrowers will be considered as lending under
Weaker Sections category-
1. Small and Marginal Farmers
2. Artisans, village, and cottage industries where individual credit limits do not exceed ₹5 lakh.
3. Self Help Groups
4. Persons with disabilities
5. Minority communities

a) 1,2 and 3
b) 1,3, 4 and 5
c) 3,4 and 5
d) 1,4 and 5
Answer: b)
54. Consider the following statements regarding MSP-

1. It stands for Maximum Support Price.
2. The MSP is the rate at which the government purchases crops from farmers and is based on a
calculation of at least one-and-a-half times the cost of production incurred by the farmers.
3. The Commission for Agricultural Costs & Prices (CACP) recommends MSPs to the Government.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: b)
55. Which of the following services are offered by a NBFC?

1. Gold loans.
2. Microfinance.
3. Leasing and hire-purchase services.
4. Credit card services.
5. Insurance services
a) 1,2 and 5
b) 2,3,4 and 5
c) 1,2,3 and 5
d) All of the above
Answer: d)
56. In accordance with the provisions of the SARFAESI Act, 2002 who is a sponsor in an Asset
Reconstruction Company?
a) Any person holding not less than 10% of the paid-up equity capital of an asset reconstruction
company.
b) Any person holding not less than 15% of the paid-up equity capital of an asset reconstruction
company.
c) Any person holding not less than 20% of the paid-up equity capital of an asset reconstruction
company.
d) Any person holding not less than 12% of the paid-up equity capital of an asset reconstruction
company.
Answer: a)
57. In 2021, the formation of an ARC-AMC structure, comprising two entities for aggregation and
resolution of Non-Performing Assets (NPAs) in the banking industry. Which are those 2 entities?
1. National Asset Reconstruction Company Limited
2. India Debt Resolution Company Limited
3. National Asset Regeneration Company Limited
4. Indian Debtors Resolution Company Limited
a) 1 and 2
b) 2 and 4
c) 1 and 3
d) 3 and 4
Answer: a)
58. Which of the following statements correctly defines Securitisation of Assets?

a) When a bank combines several liquid assets and converts them into a security that can be purchased
or sold in the financial markets, thus providing liquidity in the market and lower risk.
b) It is the process in which certain types of assets are pooled so that they can be repackaged into
interest-bearing securities.
c) It is a financial entity set up to buy Non-Performing Assets (NPAs), or Bad Loans, from banks.
d) It is a corporate structure which isolates illiquid and high-risk assets held by a bank or a financial
organisation, or perhaps a group of banks or financial organizations.
Answer: b)
59. Consider the following statements regarding Sarfaesi Act-

1. It is a legislation that permits banks and other financial institutions to successfully recover bad debts.
2. It extends to whole of India excluding State of Jammu & Kashmir.
3. It is not applicable to any security interest created on agricultural land.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
60. Consider the following statements regarding Continuing Guarantee-

1. It is a guarantee which extends to a series of transactions.
2. It can’t be revoked by the surety before the completion of the said number of transactions.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b)
61. Which of the following statement(s) is/are correct regarding contract of guarantee?
1. It may or may not be supported by consideration.
2. The person who gives the guarantee is called the beneficiary.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: d)
62.What do you understand by the term derivatives?

a) It is a security with a price that is dependent upon one or more underlying assets.
b) It uses financial instruments or market strategies to offset the risk of any adverse price movements.
c) It is a protection that investors can use to protect their investments from sudden and unforeseen
changes in financial markets.
d) It is the process in which certain types of assets are pooled so that they can be repackaged into
interest-bearing securities.
Answer: a)
63. Which of the following is a source of finance for companies?

1. Share Capital
2. Term Loans
3. Debentures
4. Deferred Credit
5. Incentive sources
a) 1,2 and 3
b) 2,3 and 4
c) 2,3 and 4
d) All of the above
Answer: d)
64. Consider the following statements regarding IBA Model education loan-
1. NRIs are not eligible for this scheme.
2. Only tuition fees and hostel expenses are considered.
Which of the above statements is/are incorrect?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
65. Which of the following statement(s) is/are correct regarding debentures?

1. These are debt instruments issued by the company that promises a fixed interest rate on the due
date.
2. Debentures can be secured or unsecured.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
66. In vehicle finance a lenders’ charge is registered with the Regional Transport Office (“RTO”) under
__________________ in accordance the Motor Vehicle Act, 1988.
a) SAARTHI
b) CHAALAK
c) VAAHAN
d) PUSHPAK
Answer: c)

1. In contract of bailment if goods are bailed for hire, the bailor is responsible for any damage whether
he was aware of the existence of such faults in the goods bailed or not.
2. If the bailee has rendered any service in respect of the goods bailed to him, he has the right to lien
until he receives due remuneration.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: c)
68. The concept of hypothecation in India is regulated by__________

a) The Indian Contract Act, 1872
b) Banking Regulation Act, 1949
c) SARFAESI Act 2002
d) Insolvency and Bankruptcy Code, 2016
Answer: c)
69. Which of the following can be categorized as NPA?

1. The interest or instalment is overdue for a period of more than 90 days in respect of a term loan.
2. The account remains out of order in respect of an overdraft/cash credit.
3. The bill remains overdue for a period of more than 90 days, in case of bills purchased or
discounted.
4. The instalment of the principal or the interest thereon remains overdue for three crop seasons
for short duration crops.
a) 1 and 2
b) 2,3 and 4
c) 1,2 and 3
d) All of the above
Answer: c)
70. Which of the following statements is correct?

a) If loss assets are permitted to remain in the books of accounts for any reason, 200% of the
outstanding should be provided for.
b) No provision is created for Standard Assets by the banks.
c) A bank may voluntarily make specific provisions for advances at higher rates than the rates
prescribed by RBI.
d) All of the above statements are correct.
Answer: c)
Module-C
1. In this Network Topology all devices in the network are connected to a single continuous cable and
transmission is received by all workstations-
a) Ring Topology
b) Star Topology
c) Bus Topology
d) Tree Topology
Answer: c)
2. _________is a network security system that monitors and controls incoming and outgoing network
traffic based on retirement security rules.
a) Network Protocols
b) Network Topology
c) Firewall
d) Uninterrupted Power System
Answer: c)
3. __________ is a simple form of a data warehouse that is focused on a single subject or line of business
such as sales finance or marketing.
a) Data Warehousing
b) Data Mart
c) Data Lake
d) Data Mining
Answer: b)
4. ___________ allows organizations to store large amount of structured and unstructured data and
immediately make it available for real time analytics.
a) Data Warehousing
b) Data Mart
c) Data Lake
d) Data Mining
Answer: c)
5. ______is the process of automatically finding patterns and relations in large databases which reveals the
strategic information hidden in the data warehouse.
a) Data Warehousing
b) Data Mart
c) Data Lake
d) Data Mining
Answer: d)
6. ATMs which are set up, owned, and operated by non-banks are called_________.
a) White Label ATMs
b) Brown Label ATMs
c) Pink Label ATMs
d) Cash Dispenser
Answer: a)
7. Which of the following statement correctly defines Charge cards?

a) It is an electronic payment card where the card holder is not charged interest but needs the user
to pay the balance due in full upon receipt of statement.
b) In these cards the funds are immediately debited to the cardholders’ accounts.
c) They are used exclusively by members of a club or a chain of hotels.
d) These cards can be used at POS terminals of merchant establishments by simply tapping the
card.
Answer: a)
8. What is a Neo-Bank?
a) These banks manage investment portfolios.
b) Banks offering personalized banking services.
c) Banks that challenge traditional banking models by offering innovative products and services.
d) Digital-only banks that operate entirely online with no physical branches.
Answer: d)
9. Which of the following is true about an optical fibre?

1. It supports a data rate of 2 gigabits/second.
2. The transmissions are not affected by electromagnetic interference.
3. The data transfer is through a thin glass with a beam of light.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: d)
10. In this mode of transmission data movement is in both directions but only one direction at a time-
a) Simplex
b) Half-simplex
c) Half-duplex
d) Full simplex
Answer: c)
11. Consider the following statement(s) about INFINET-

1. It is managed by Indian Financial Technology and Allied Services
2. It designs, deploys & provides the essential IT-related services, required by the Reserve Bank of
India, banks, and financial institutions.
3. Individuals can’t use services of INFINET as it has a closed user group.
a) 2 only
b) 1 and 3
c) 2 and 3
d) All of the above
Answer: d)
12. Consider the following statement(s) regarding SWIFT-

1. It is a co-operative non-profit organisation established under Belgian Law
2. It’s headquartered in Geneva.
3. It is message transmission system.
a) 2 only
b) 1 and 3
c) 2 and 3
d) All of the above
Answer: a)
13. Which Electronic Payment System is being talked about in the following statements?
1. It is an electronic payment system that allows users to initiate direct one-to-one payment anywhere
across the country.
2. It can be accessed 24*7.
3. It has no minimum or maximum limit on the amount to be transferred.
4. Settlement is on half hourly basis.
a) IMPS
b) RTGS
c) NEFT
d) NECS
Answer: c)
14. Consider the following statements regarding Cheque Truncation System-

1. It is not defined under Negotiable Instruments Act,1881.
2. A cheque truncation system promotes the processing of a cheque electronically through the
Magnetic Ink Character Reader (MICR) data and a scanned image.
3. CTS has increased the time taken in the payment processing of a cheque.
a) 1 only
b) 2 only
c) 3 only
d) All of the above
Answer: b)
15. What is the minimum amount for customer transaction for IMPS?
a) Rs 50,000
b) Rs 100,000
c) Rs 200,000
d) No limit
Answer: d)
16. Consider the following statements regarding NPCI-

1. It stands for National Payment Company of India
2. It is a not-for-profit organisation.
3. It was established by RBI and Indian Banks’ Association
a) 1 only
b) 2 only
c) 2 and 3
d) 1 and 3
Answer: a)
17. ____________is the largest network of shared ATMs in India developed and deployed by Institute for
Development and Research in Banking Technology-
a) National Payment Corporation of India
b) National Financial Switch
c) National Automated Clearing House
d) Unified Payments Interface
Answer: b)
18. Which of the following service is not available in Bharat Interface for Money (BHIM)?
a) Blocking of User
b) Splitting the bill
c) Applications for IPO
d) All of the above are available.
Answer: d)
19. _________ is the nodal agency to deal with cyber security threats like hacking and phishing.
a) CoE-IT
b) CERT-IN
c) GeM
d) BBNL
Answer: b)
20. ___________ are software applications that mimic written or spoken human speech for the purpose of
stimulating a conversation or interaction with a real person.
a) Robotic Process Automation
b) Artificial Intelligence
c) Chatbots
d) Augmented Reality
Answer: c)
21. Which of the following is not a Network Topology Layout?

a) Bus
b) Ring
c) Plant
d) Star
Answer: c)
22. __________ is a networking device and it forwards data packets between computer networks.
a) Repeaters
b) Network Interface Cards
c) Routers
d) Bridge
Answer: c)
23. __________ Network topology connects each device to every other device in the network.
a) Mesh
b) Hybrid
c) Bus
d) Star
Answer: a)
24. Which of the following is not a benefit of Core banking System?

a) Servers are mandatory at branch locations.
b) Customers need not necessarily transact only from the home branch.
c) Establishes a reliable centralized data repository for the bank.
d) Facilitates data mining and data warehousing.
Answer: a)
25. Consider the following statement(s) regarding Kiosk Banking-

1) Kiosks are small booths with internet connections established with personnel to help the customers
avail basic bank services.
2) It is not available in India.
3) The services provided are usually withdrawals, deposits, remittances
Which of the above statements is/are correct?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
26. Tap to pay allows purchasers to pay by tapping or hovering over the payment terminal with a contactless
chip-enabled card. What technology is used for this?
a) Near-field communication
b) Radio Frequency Identification
c) Electromagnetic waves
Answer: a)
27. Which of the following statement correctly defines file transfer protocol?
a) It is a communication protocol used for the transfer of computer files from server to a client on a
computer network
b) It is a method for the delivery of voice communications and multimedia sessions over Internet
protocol networks.
c) It is a facility that organises Internet related resources which may information access quite easy
where documents are linked together.
d) It is a network that allows users of one computer log into another computer that is part of the same
network
Answer: a)
28. Which of the following statements correctly defines AePS?

a) It facilitated multiple credits to beneficiary accounts with destination branches across the country
against a single debit of the account of the sponsor bank.
b) Under this payment system Basic banking transactions cab ne done at the Micro ATM of the Business
Correspondent of any bank using Aadhaar authentication.
c) It is an umbrella system for payment of all bills.
d) It is a process of stopping the physical movement of cheques.
Answer: b)
29. Consider the following statements regarding Cheque Truncation-

1) It is an electronic image of a paper cheque.
2) The paper cheque is sent to the customer after truncation as the bank keeps the electronic copy for
verification.
3) The addition of the digital signature of the truncating Bank to the electronic image of the cheque is
optional/
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: c)
30. Which of the following is not a web browser?

1. Google Chrome
2. Microsoft Edge
3. Mozilla Firefox
4. Chat GPT
5. Safari
6. Opera
a) 1,2 and 3
b) 4,5 and 6
c) 4 only
d) 3,4,5 and 6
Answer: c)
31. What is the role of National Automated Clearing House (NACH)?
a) It is a centralized system for financial institutions, corporate and government as a web-based solution
for the facilitation of interbank, high volume electronic transactions.
b) It is an electronic payment system developed by RBI to facilitate transfer of funds by customers from
one bank to another bank in India.
c) It is a RBI mandated system which offers integrated and interoperable bill payment services to
customers across geographies with certainty, reliability and safety of transactions.
d) It is a technology invented in the 1950s that's used to verify the legitimacy or originality of checks
and other paper documents.
Answer: a)
32. Which of the following statements is/are correct regarding Unified Payments Interface (UPI)
1. It is a system that powers multiple bank accounts into a single mobile application.
2. Authentication of transactions happens through single Click, two-factor authentications.
3. It is not available on iOS.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: a)
33. Consider the following statements regarding NPCI-

1. It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of
Companies Act 1956.
2. It is an umbrella organisation for operating retail payments and settlement systems in India.
3. It has been instrumental in the development of RuPay, BBPS and AePS.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: d)
34. Consider the following statements regarding RuPay-

1. It was launched in 2012 by the Reserve Bank of India (RBI).
2. RuPay is an initiative of the National Payment Corporation of India (NPCI).
3. RuPay cards has a comparatively lower processing cost and processing time in comparison to Visa
and MasterCard.

a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: d)
35. What is the name of the national cloud (cloud computing) initiative of the Indian government?
a) MANYATAA
b) MeghRaj
c) VarshComp
d) PAWAN
Answer: b)
36. RBI has launched the “Payments Vision2025”. What is its core theme?
a) E-Payments through Digital India
b) E-payments for Everyone, Everywhere, Every time
c) Bharat development through Bharat Pay
d) Safe, secure Digital India
Answer: b)
37. Which of the following areas have been impacted by the adaptation of information technology in the
banking sector?
a) Service Quality
b) Training needs of staff
c) Privacy and confidentiality of data
d) All of the above
Answer: d)
38. Which of the following is not a characteristic of 5G technology?

a) High latency
b) High data Capacity
c) Reliability
d) All are characteristics of 5G technology.
Answer: a)
39. Which of the following are examples of crypto currency?

1. Ethereum
2. Litecoin
3. Ripple
4. Bitcoin
a) 1 and 2
b) 2,3 and 4
c) 1,2 and 4
d) All of the above
Answer: d)
40. Which of the following is a type of cyber-attack?

1. Phishing
2. Malware.
3. Denial-of-Service (DoS) Attacks.
4. Spoofing.
a) 1,2 3
b) 1,2 and 4
c) 3 and 4
d) All of the above
Answer: d)
Module-D
1. Consider the following statements regarding the Theory of Trusteeship-

1. It was explained/given by Lal Bahadur Shastri.
2. It stipulates that the rich should consider their property as what God trusted them to manage for the
benefit of the poor.
Which of the above statement(s) is/ are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b)
2. Which of the following is not a Principle of Business Ethics?

a) Dignity
b) Fairness
c) Honesty
d) Profit
Answer: d)
3. ________ protects people who provide information about wrongdoing.

a) Public Servants Disclosure Protection Act (PSDPA)
b) Protected Disclosures Act, 2002
c) The Whistle Blowers Protection Act, 2011
d) All of the above
Answer: c)
4. Which of the following correctly defines the term, Norm?
a) It is the expectation of proper behaviour and not the requirements of that behaviour.
b) These are principles that help you to decide what is right and wrong.
c) It is an acceptance that something exists or is true, whether or not there is proof or evidence.
d) It is the moral principles for judging the rightness of something.
Answer: a)
5. Consider the following statements regarding Personal Ethics-

1. It is a class of philosophy that governs an individual’s beliefs about morality and correct-incorrect
behaviours.
2. These are often regulated by legal and regulatory requirements.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: a)
6. Consider the following statements regarding Business Ethics-

1. These are often regulated by legal and regulatory requirements.
2. The business ethics are always in sync with the individual ethics.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: a)
7. What is the Golden Rule in moral/ethical principles?

a) One should treat others as they themselves would like to be treated.
b) Wealth without work is a sin for the individual.
c) Commerce without morality is unethical.
d) All of the above.
Answer: a)
8. Consider the following statements regarding Ethical Dilemmas-

1. It is any situation where the moral principles can't determine whether the action taken is ether right
or wrong.
2. It can be a clash between two rights.
3. End-result based thinking can help in resolving the dilemma in many situations.
a) 2 only
b) 1 and 3
c) 2 and 3
d) All of the above
Answer: d)
9. Which of the following approaches can help in resolving the Ethical Dilemmas-
1. End-result based thinking
2. Rule based thinking
3. Care based thinking
4. Profit based thinking
a) 1 and 2 only
b) 1,2 and 3
c) 2 and 3
d) 1, 3 and 4
Answer: b)
10. Individual integrity is____________

a) Firm adherence to code of values.
b) Firm adherence to rules and regulations.
c) Moral, legal, and mental accountability.
d) Process of recognizing which decisions require ethical judgements.
Answer: a)
11. A CEO of a corporation buys 1,000 shares of stock in the corporation. The trade is reported to the
Securities and Exchange Board of India. It is an example of
a) Legal Trading
b) Illegal Trading
c) Job advantage
d) Bribery
Answer: a)
12. A board member of a company knows that a merger is going to be announced within the next day or
so and that the company stock is likely to go way up. He buys 1,000 shares of the company stock in
his mother's name so he can make a profit using his insider knowledge without reporting the trade
to the Securities and Exchange Commission and without news of the purchase going public. It is an
example of________
a) Insider trading
b) Legal Trading as the shares were not bought by the board member himself.
c) insider trading only if the mother transfers the profit to the Board member.
d) Insider trading only if all the proceeds are transferred to the board member.
Answer: a)
13. Insider trading is prohibited in India. It is regulated by_______

a) BASEL norms
b) Companies Act,2013
c) Securities and Exchange Board of India
d) Securities and Exchange Commission
Answer: c)
14. Which of the following is an example of Job Discrimination?

a) Women being given menstrual leave
b) Physically disable person not being recruited for Police Service
c) Person removed from job based on sexual orientation
d) All of the above
Answer: c)
15. Which of the following can be included in the definition of sexual harassment?
a) Demand for sexual favours
b) Non-verbal conduct of sexual nature
c) Non-physical conduct of sexual nature
d) All of the above
Answer: d)
16. ____________is a situation where someone has distinct obligations to different people that
contradict one another.
a) Ethical Dilemna
b) Conflict of Interest
c) Insider Trading
d) Whistle Blowing
Answer: b)
17. The Whistle Blowers Protection Act, 2011 provides punishment for false or frivolous complaints. The
protection of genuine complainant is the responsibility of______
a) Serious Fraud Investigation Office
b) Comptroller and Auditor General of India
c) Central Information Commission
d) Central Vigilance Commission
Answer: d)
18. Which of the following doesn’t constitute conducting personal business during office hours?
a) Filing tax return by a CA for his spouse free of cost
b) Searching for products on Flipkart
c) Helping your new colleague in office work
d) Completing work assignment of your friend who works in some other firm
Answer: c)
19. The famous Golden Arches of McDonald's in the shape of the letter M can’t be used by any other
organisation as McDonald’s has a ______ for it.
a) Copyright
b) Trademark
c) Patent
d) Intellectual Property Right
Answer: b)
20. Committee headed by retired justice B.N. Krishnan identifies 7 principles for the data protection
laws, one of which is Technology Agnosticism. What does it mean?
a) Data protection law must be flexible to include the changing technologies
b) Data sought and processed should be minimal and as necessary
c) No data should be collected without consent
d) All of the above
Answer: a)
21. The word ethics has been derived from which of the following Greek word?
a) Ethos
b) Ethees
c) Ethaas
d) Ethiia
Answer: a)
22. Ethics are used to determine the goodness of our_______

a) Thoughts
b) Actions
c) Values
d) All of the above
Answer: b)
23. A pharmaceutical company has invented a new medicine that can cure cancer. What type of
Intellectual Property Right will be used to protect the formula of the medicine?
a) Trademark
b) Patent
c) Copyright
Answer: b)
24. Ram walks into a hostage situation. There are 20 hostages, and he is told that if he shoots one
hostage, he will save the lives of the other 19. What ethical theory would approve killing of one of
the hostages because the other 19 lives are a greater benefit, regardless of the fact that the cost
would be one person’s life?
a) Deontology
b) Utilitarianism
c) Virtue
Answer: b)
25. The Vishakha guidelines are related to which of the following?

a) Job Discrimination
b) Insider trading
c) Sexual Harassment
d) Conflict of Interest
Answer: c)
26. Which of the following statement(s) is/are correct regarding values?

1. They are universal.
2. They are influenced by family, society, and religion.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer: b)
27. Which of the following in incorrect regarding bribery-

1) Indian banking system is free from this malice.
2) Taking bribes is an unlawful activity but giving bribe is only frowned upon and is not punishable.
3) Only monetary benefits count as bribery.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: d)
28. A company has invented a medicine that will cure AIDS. The company has to spend a huge amount of
money on the research. AIDS is prevalent around the world and the drug could save hundreds of
lives. They want to give it for free, but it will be detrimental for the company’s financial health. What
is the term to describe this situation?
a) Ethics
b) Ethical Dilemna
c) Immorality
d) Whistle Blowing
Answer: b)
29. Which of the following is not an example of abuse of official position?

a) Using office staff to pick and drop children from school.
b) Using office car for official trips.
c) Getting your official work done from a junior.
d) Delegating authority to your employees
Answer: d)
30. Which of the following statements correctly defines Corporate Culture-

a) It refers to the shared values, attitudes, standards, and beliefs that characterize members of an
organization and define its nature.
b) It is individual belief that motivate people to act one way or another and serve as a guide for human
behavior.
c) It is a collection of rules and principles intended to assist employees and directors in making
decisions about their conduct in relation to the firm's business.
d) It is the state of believing; conviction or acceptance that certain things are true or real.
Answer: a)
31. Which of the following is an indicator of an ethical workplace?

a) Respectful treatment of all categories of customers by the front-office personnel.
b) High salaries
c) Fair and appropriate treatment given to co-employees.
d) Both a) and c)
Answer: d)
32. It is an examination or inspection of systems or processes hey to make sure that they are compliant
with ethics-related requirements.
a) Ethical Dilemna
b) Ethical audit
c) Whistleblowing
d) Both a) and b)
Answer: b)
33. Which of the following statements correctly defines terminal value?

a) It is a tool or means for acquiring a final value.
b) It is an ultimate goal which we desire to achieve in our lifetime.
c) It is a value which cannot be achieved in our lifetime.
d) Expectation of proper behaviour from an individual in emergency situation.
Answer: b)
34. Consider the following statements regarding core values of an organization-

1. An organization’s core values are based on human values.
2. Core values are fundamental beliefs of a person or an organization
3. A company should effectively and properly communicate it core values to all the stakeholders
especially its employees.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: d)
35. There is a hierarchy in which human beings generally think about the purpose of one's life. Owing
option correctly identified the hierarchy starting from the most important.
a) Self- family- community- religion- society- global causes
b) Self- family- society- global causes- community- religion
c) Self- family- society- global causes- community- religion-
d) Family- Self- - community- religion- society- global causes
Answer: a)
36. Which of the following is the major cause of unethical behaviour in the workplace?
1. Non availability of code of ethics manual
2. Lack of fear of action
3. Unrealistic targets
4. Influence of co employees
5. Unprincipled leadership
6. Means are not appreciated
a) 1,2,3 and 6
b) 2,3,4 and 5
c) 1,4,5 and 6
d) All of the above
Answer: d)
37. Which of the following are some common unethical practices found at the workplace -
1. Abuse of official email
2. Not hiring pregnant woman
3. Data leakage to customer’s wife
4. Helping friends in getting information from company database
a) 1,2 and 3
b) 2,3 and 4
c) 1,3 and 4
d) All of the above
Answer: d)
38. What do you understand by the term data minimization?

a) A data controller should limit the collection of personal information to what is directly relevant
and necessary to accomplish a specified purpose.
b) It refers to something that is generalized so that it is interoperable among various systems.
c) It refers to the creation of an asset by an individual or anyone using his or her creativity.
Answer: a)
39. Ram created an artistic work. What category will he use to protect his work from being copied?
a) IPR
b) Trademark
c) Patent
d) Copyright
Answer: d)
40. This theory believes that pleasure is the most important thing in life.
a) Liberalism
b) Hedonism
c) Agnosticism
d) Utilitarianism
Answer: b)
Q.1) According to the Angus Maddison database, which two countries contributed 50.5 per
cent of global GDP in 1000 AD (GDP computed in 1990 dollars and in purchasing power parity
terms)?
[A] India and Russia
[B] India and China
[C] Britain and China
[D] Britain and America
Q.2) According to the Angus Maddison database, by 1600 AD, India accounted for ________ of global
GDP.
[A] 52%
[B] 29%
[C] 23%
[D] 10%
Q.3) According to the Angus Maddison database which among the following statement is correct?
[A] The GDP share of India in the global GDP has increased between 1600 AD and 1700 AD
[B] The GDP share of China and India in the global GDP has decreased between 1600 AD and 1700 AD
[C] The GDP share of India in the global GDP has decreased between 1600 AD and 1700 AD
[D] The GDP share of India in the global GDP has risen to 34.4 per cent by 1700 AD
Q.4) Indian economy is ranked in the world in terms of GDP purchasing power parity (PPP)?
[A] 1st

[B] 5th
[C] 3rd
[D] 4th
Q.5) Which among the following statement(s) is/are correct with respect to Indian
Economy before independence?
1. During the pre-independence era, the Indian Economy was characterised by near stagnation.
2. The British East India Company encouraged industrialisation in the nation.

[A] 1 only
[B] 2 only
[C] Both 1 and 2
[D] Neither 1 nor 2
Q.6) World Bank classifies economies considering per capita income into categories.
[A] 2
[B] 4
[C] 5
[D] 6
Q.7) As per the World Bank, Indian Economy falls under which category considering per-capita income?
[A] Low Income
[B] Lower Middle-Income
[C] Upper Middle-Income
[D] Higher Income
Q.8) Which among the following is not a characteristic of the Indian Economy?

[A] High per capita real income
[B] Rapid population growth
[C] High rate of unemployment
[D] Excessive reliance on primary sector
Q.9) Which among the following was the dominant sector in the Indian economy in 1950?
[A] Agricultural sector
[B] Industrial sector
[C] Tertiary sector
[D] Services sector
Q.10) The service sector surpassed agriculture sector to become the largest contributor to India's GDP in
the year _
[A] 1950-51
[B] 1970-71
[C] 1980-81
[D] 1990-91
Q.11) Which among the following statement(s) is/are correct with respect to the Indian
economy during the British era?
1. India's commerce, trade, and investment were hampered by the unilateral transfer of
capital and raw materials to Britain.
2. Under British rule, India developed into a high-quality labour market.
3. According to statistics, less than one-sixth of Indians were only literate.
Select the correct answer using the code given below:

[A] 1 and 3 only
[B] 2 only
[C] 1 and 2 only

[D] 2 and 3 only
Q.12) Who among the following published the first estimates of national income in India
in his book "Poverty and Un-British Rule in India" for the year 1867-1868?
[A] William Digby
[B] DadabhaiNaor i
[C] Findlay Shirras
[D] V.K.R.V. Rao
Q.13) According to the work of Cambridge economist Angus Maddison, India accounted for _______
percent of global trade in 1600
[A] 23%
[B] 26%
[C] 33%
[D] 34%
Q.14) Which among the following statement is correct with respect to variations in Gross
Domestic Product (GDP) and Per Capita GDP of India, between 1600 AD and 1950 AD, as per the
work of Cambridge economist Angus Maddison?
[A] There was a regular growth in per capita GDP
[B] The GDP of India increased while the per capita GDP did not grow constantly
[C] Both GDP and Per Capita GDP grew constantly
[D] During the British era there was not much change in GDP
Q.15) Which among the following were the features of Indian Economy during the British era?
1. De-industrialisation
2. Agricultural commercialisation
3. Wealth drain
4. Westernisation of Indian Education system

[A] 1 and 2 only
[B] 1, 2 and 3 only
[C] 2, 3 and 4 only
[D] 1, 2, 3 and 4
Q.16) Who among the following have done research and written about wealth drain from India to
Britain?
1. Dadabhai Naoroji
2. R.C. Dutta
3. C.N. Vakil
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.17) Who among the following studied the Wealth drain theory during the British era and
classified it into four broad streams?
[A] Edmumd Burke
[B] DadabhaiNaor i
[C] Philip Francis
[D] R.C. Dutta
Q.18) Which among the following is/are part of the 'Home Charges' of the British colonial
government from India between 1858 and 1947?
1. Dividends to East India Company shareholders
2. Interest on loans raised by the Government of India in England
3. Expenditure on British army stationed in India and bringing them to India

4. Salaries of the Secretary of state for India and his staff
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.19) India's per capita income from 1600-1947 increased by per cent.
[A] 12%
[B] 553%
[C] 24%
[D] 52%
Q.20) The term 'Hindu Rate of growth' was coined in 1978 by
[A] Dilip Abreu
[B] Shankar Acharya
[C] Professor Raj Krishna
[D] Amiya Kumar Bagchi
Q.21) The growth rate of the Indian economy referred to by the 'Hindu rate of growth' is _
[A] 6-7%
[B] 7-8%
[C] 9%
[D] 3.5%
Q.22) India was able to break the curse of the 'Hindu Rate of Growth' during which Five Year Plan?
[A] Fifth Five Year Plan
[B] Sixth Five Year Plan

[C] Seventh Five Year Plan
[D] Eighth Five Year Plan
Q.23) Which among the following factor(s) helped the Indian Economy to break through the
Hindu Rate of Growth and show a higher rate of growth?
1. Higher government spending.
2. Liberalised import policies of the government
3. Increased imports of capital goods and raw materials for manufacturing
4. Boosting the production of non-luxury goods in the
country. Select the correct answer using the code
given below:
[A] 1, 2 and 3 only
[B] 1, 2 and 4 only
[C] 2, 3 and 4 only
[D] 1, 3 and 4 only
Q.24) The growth rate of the Indian Economy during the eight five-year plan was _
[A] 5.7%
[B] 6.7%
[C] 7.8%
[D] 5.3%
Q.25) The main reason(s) for the high growth rate of the Indian Economy during the Five-Year plan
after the implementation of Economic Reforms of 1991 are:
1. Increase in the inflow of foreign capital.
2. Favourable economic policies
3. Global economic boom

[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.26) From 2002-03 to 2006-07, India's GDP grew at an 8.6 per cent annual rate, making it the world's
[A] Fastest growing economy
[B] Second fastest growing economy
[C] Third fastest growing economy
[D] Fourth fastest growing economy
Q.27) Prior to the COVID-19 pandemic, the Indian economy's average annual growth rate
between 2008-09 and 2019-20 (at base year 2011-12 prices) was
[A] 3.5%
[B] 5.6%
[C] 6.5%
[D] 9%
Q.28) The only sector that positively contributed to investment demand in 2020-21 was _
[A] Services sector investment
[B] Manufacturing sector investment
[C] Government expenditure supporting Gross Fixed Capital Formation (GFCP)
[D] Real estate sector investment supporting growth in green buildings
Q.29) The sector that have remained Resilient post-pandemic with respect to the Indian Economy are?
1. Agriculture
2. Financial Services
3. Transport Services
4. Public Administration

[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2 and 4 only
Q.30) RBI has predicted that India will offset COVID-19 losses in __________ year.
[A] 2023-24
[B] 2028-29
[C] 2034-35
[D] 2026-27
Q.31) Which among the following is correct with respect to the Indian Economy?
[A] The Agriculture sector is the largest contributor to India's GDP
[B] The contribution to the GDP of the Services sector has surpassed the Agriculture sector
but not the manufacturing sector.
[C] In India, the industrial sector has largely replaced the agriculture sector, and it now
dominates the economy.
[D] In India, the services sector has largely replaced the industrial sector, and it now dominates the
economy.
Q.32) In 2020-21, the services sector contributed __________ per cent of the economy.
[A] 60.9%

[B] 71.2%
[C] 19.8%
[D] 17.7%
Q.33) According to the Angus Maddison database, India and China contributed of global GDP in
1000 AD.
[A] 23 per cent
[B] 34.5 per cent
[C] 75 per cent
[D] 50.5 per cent
Q.34) The contribution of sector is maximum to the Indian Economy
[A] Primary
[B] Secondary
[C] Tertiary
[D] Industrial
Q.35) Which period with respect to the Indian Economy is called the post-reform period?
[A] 1951-1960
[B] 1961-1980
[C] 1980-1990
[D] 1992-2008
Q.36) The sector which includes all those economic activities where there is the direct use of natural
resources is .
[A] Industrial Sector
[B] Secondary Sector
[C] Primary Sector

[D] Quniary Sector
Q.37) Which among the following statement(s) is/are correct?
1. Secondary sector includes all those economic activities where direct use of natural resources takes
place.
2. Secondary sector is also called a Industrial Sector.
3. An industrial economy is one, in which, the secondary sector generates at least half of
a country's national GDP and employment
[A] 1 and 2 only
[B] 2 and 3 only
[C] 1 only
[D] 3 only
Q.38) Which among the following is/are the sub-sectors of tertiary sector?
1. Primary sector
2. Secondary sector
3. Quaternary sector
4. Quinary sector
[A] 1 and 2 only
[B] 2 only
[C] 3 only
[D] 3 and 4 only

Q.39) Employees in office buildings, elementary schools and universities come under which
among the following sectors of the Indian Economy?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] Quaternary sector
Q.40) The people working in which among the following sector are regarded as the brain
behind an economy's socioeconomic performance?
[A] Primary Sector
[B] Industrial Sector
[C] Tertiary Sector
[D] Quinary Sector
Q.41) Which among the following is not a feature of Indian agriculture?
[A] Food-grain oriented farming
[B] Low diversification
[C] Irrigation-based farming
[D] Agricultural commercialisation
Q.42) Who among the following is considered the Father of Indian Green Revolution?
[A] Mr. M.S. Swaminathan
[B] Mr. Verghese Kurien
[C] Mr. Sam Pitroda
[D] Dr. Arun Krishnan
Q.43) The White Revolution or Operation Flood began in which among the following years?

[A] 1996
[B] 1980
[C] 1970
[D] 1966
Q.44) Who among the following is considered as the 'Father of Yellow Revolution' in India?
[C] Mr. Sam Pitroda
[D] Dr. Arun Krishnan
Q.45) Blue Revolution was implemented within which among the following years?
[A] 1966-1970
[B] 1973-2002
[C] 2014-2020
[D] 1969-1978
Q.46) Who among the following is considered as the 'Father of Golden Revolution' in India?
[A] Mr. M.S. Swaminanthan
[C] Mr. Hiralal Chaudri
[D] Mr. Nirpakh Tutej
Q.47) The Golden Fibre Revolution is related to increasing the production of which among the following?
[A] Wheat
[B] Jute
[C] Silk
[D] Cotton

Q.48) The Silver Revolution in India is related to increasing the production of
[A] Cotton
[B] Eggs
[C] Silk
[D] Jute
Q.49) Silver Fibre Revolution is related to the increase in the production of which among the following?
[A] Jute
[B] Silk
[C] Banana fibers
[D] Cotton
Q.50) Pink Revolution in India is related to the increase in the production of
[A] Pharmaceuticals, Prawns and Onion
[B] Fertilisers
[C] Leather
[D] Tomato
Q.51) Who among the following is considered the 'Father of Brown Revolution' in India?
[C] Mr. Sam Pitroda
[D] Mr. Hiralal Chaudri
Q.52) The Red Revolution related to meat and tomato was launched during which among
the following years?
[A] 1960s
[B] 1970s
[C] 1980s
[D] 1990s
Q.53) The Grey Revolution in India is related to the increase in the production of
[A] Eggs
[B] Fertilisers
[C] Cotton fibre
[D] Silk fibre
Q.54) Who among the following is considered the 'Father of Evergreen Revolution' in India?
[A] Mr. Vishal Tewari
[B] Mr. M.S. Swaminathan
[C] Mr. Narendra Modi
[D] Mrs. Indira Gandhi
Q.55) Black Revolution in India is related to increase in the production of which among the following?
[A] Potato
[B] Leather
[C] Petroleum
[D] Meat
Q.56) Round Revolution in India is related to increase in production of _
[A] Onion
[B] Tomato
[C] Cotton

[D] Potato
Q.57) The term 'Protein Revolution' in Indian context was coined by _
[B] Mr. Sam Pitroda
[C] Mr. Narendra Modi
[D] Mrs. Indira Gandhi
Q.58) The contribution of the Manufacturing sector to the Indian GDP is nearly
[A] 14%
[B] 27%
[C] 42.6%
[D] 51%
Q.59) Which among the following has the biggest private sector considering the Indian Economy?
[B] Agriculture Sector
[C] Secondary Sector
[D] Quaternary Sector
Q.60) Which among the following sector accounts for the employment of the largest
number of unorganised labour?
[C] Tertiary Sector
[D] Quaternary Sector
Q.61) The percentage of the total workforce engaged in agricultural and allied sector activities
as per the Indian Census 2011 is ---

[A] 45%
[A] 17%
[B] 70%
[C] 38%
[D] 54.6%
Q.62) The contribution of the Indian Agriculture sector to India's Gross Value Added (GVA) is nearly
[A] 42.4%
[B] 43.6%
[C] 17.8%
[D] 13.4%
Q.63) The net area sown is about % of the total Geographical Area of India
[A] 38%
[B] 17.7%
[C] 53.6%
[D] 42.4%
Q.64) The contribution of the manufacturing sector to India's GVA is per cent.
[A] 18%
[B] 8%
[C] 28%
[D] 29%
Q.65) The contribution of the construction sector to the total Gross Value Added (GVA) of India is

[A] 18%
[B] 8%
[C] 2%
[D] 3%
Q.66) Which among the following time period is known as the post-reform era in Indian Economy?
[A] 1951-1965
[B] 1965-1980
[C] 1980-1991
[D] 1991 onwards
Q.67) The base year for the calculation of the Index of Industrial Production (IIP) in India is _
[A] 1980-81
[B] 1990-91
[C] 2000-01
[D] 2011-12
Q.68) The combined Index of Eight Core Industries (ICI) increased by _________ % in December 2022
compared to the Index of December 2021
[A] 3.4%
[B] 15%
[C] 7.4%
[D] 5.6%
Q.69) Which among the following is/are part of the services sector of India?
1. Trade
2. Hotels and restaurants

3. Real estate
4. Government administration
[A] 1, 2, 3 and 4
[B] 1, 2 and 4 only
[C] 1 and 2 only
[D] 1, 2 and 3 only
Q.70) As per the findings of the Ministry of Statistics and Programme Implementation (MoSPI), the largest
contributor to the Services sector GVA is _______________.
[A] Trade, hotels and transport sectors
[B] Financial, real estate & professional services
[C] Public administration, defence & other services
[D] Communication and services related to broadcasting
Q.71) Of the total net Service Exports of India, about 40% pertains to which among the following?
[A] Sea Transport
[B] Health - related services
[C] Education-related services
[D] Software
Q.72) The Manufacturing sector in India employs roughly _________ per cent of the labour force.
[A] 17.2%
[B] 25.9%
[C] 26.8%
[D] 12%
Q.73) Which among the following sector is the second largest employment sector in India?
[A] Services Sector
[C] Textile Sector
[D] Construction Sector
Q.74) The construction industry employs over million people and accounting for
around per cent of total employment.
[A] 25 million; 13%
[B] 31 million; 8%
[C] 20 million; 13%
[D] 2 million; 1%
Q.75) A sector of the Indian Economy which is still in its infancy, but has the potential for significant
growth is called ____________.
[A] Sunset Sector
[B] Sunrise Sector
[C] Primary Sector
[D] Organised Sector
Q.76) Which among the following is not a Sunrise sector in India?
[A] Green Energy
[B] Fintech
[C] Pharmaceuticals
[D] Oil and gas extraction

Q.77) Which among the following is not a feature of Organised sector of an Economy?
[A] Job terms are fixed and regular
[B] Employees are guaranteed regular work
[C] Has higher unemployment than the unorganised sector
[D] Employees have social security
Q.78) Which among the following is/are the feature(s) of Unorganised Sector of an Economy?
1. Employment terms are not defined
2. Enterprises are not registered with the government.
3. Low wages, unstable and irregular work
4. Relies less on labour and indigenous
technologies Select the correct answer using
the code given below:
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1 and 2 only
Q.79) According to the National Commission for Enterprises in Unorganised Sector (NCEUS)
categorisation, the unorganised sector comprises of all unincorporated private enterprises
owned by individuals or households engaged in the sale and production of goods and services
operated on a proprietary or partnership basis and with fewer than _____total workers.
[A] 15
[B] 20
[C] 30
[D] 10
Q.80) The first country to implement Regional Planning in 1916 was _________.
[A] Russia
[B] United States of America
[C] India
[D] Sri Lanka
Q.81) The first country to implement Five-year planning in 1928 was .
[A] United States of America
[B] India
[C] Soviet Union
[D] South Africa
Q.82) The First Five Year Plan in India was started in the year
[A] 1947
[B] 1948
[C] 1950
[D] 1951
Q.83) The strategy for the Second Indian Five Year Plan was devised by
[A] Amartya Sen
[B] Kunjulekshmi Saradamoni
[C] Gopal Krishna Sarangi
[D] Prof. Mahalanobis
Q.84) The Five Year Plan during which the Pakistan and Chinese wars along with drought-led famine
hit India was __________
[A] First Five Year Plan

[B] Second Five Year Plan
[C] Third Five Year Plan
[D] Fourth Five Year Plan
Q.85) Three annual plans were implemented successively in India between which among
the following years?
[A] 1950-53
[B] 1961-64
[C] 1966-69
[D] 1972-75
Q.86) Which among the following Five-Year Plan was based on the 'Gadgil Strategy'?
[A] Second Five Year Plan
[B] Third Five Year Plan
[C] Fourth Five Year Plan
[D] Fifth Five Year Plan
Q.87) The Twenty-point Programme was started during which among the following Five-Year Plans?
[A] First Five-Year Plan
[B] Second Five-Year Plan
[C] Third Five-Year Plan
[D] Fifth Five-Year Plan
Q.88) The slogan of 'Garibi Hatao' was the motto of which among the following Five-Year Plan?
[B] Third Five-Year Plan

[C] Sixth Five-Year Plan
[D] Seventh Five-Year Plan

Q.89) Immediately after which among the following Five-Year Plans did the Indian government
bring in comprehensive reforms to the Indian Economy in the form of Liberaliastion, Privatisation
and Globalisation (LPG)?
[A] Fifth Five-Year Plan
[B] Sixth Five-Year Plan
[C] Seventh Five-Year Plan
[D] Eigth Five-Year Plan
Q.90) The main focus of the Two Annual Plans between 1990 and 1992 was _
[A] Poverty alleviation and industrialisation
[B] Employment maximisation and social reform
[C] Inflation targeting and social reform
[D] Rapid food grain production and Poverty alleviation
Q.91) Which among the following was the first Five-Year plan implemented in India that went on
to examine the macroeconomic strategies that the government had been following for decades?
[B] Sixth Five-Year Plan
[D] Eighth Five-Year Plan
Q.92) Which among the following was not part of the seven designated Basic Minimum
Services (BMS) which were focused upon under the Ninth Five Year Plan (1997-2002)?
[A] Safe drinking water
[B] Primary health service
[C] Universalisation of primary education
[D] Sanitation and hygiene

Q.93) Imperative Planning is mostly followed by which among the following kinds of economies?
[A] Capitalistic Economy
[B] Command Economy
[C] Mixed Economy
[D] Free market Economy
Q.94) The first successfully implemented indicative planning was the Monnet Plan of 1947.
Which among the following countries had implemented this plan?
[A] India
[B] Soviet Union
[C] Germany
[D] France
Q.95) The Indian Five Year Plan which for the first time went to set 'monitorable targets' and
considered Governance as a factor of development was _
[A] Fourth Five-Year Plan
[B] Fifth Five-Year Plan
[C] Eighth Five-Year Plan
[D] Tenth Five-Year Plan
Q.96) The growth rate targeted by the Eleventh Five-Year Plan was %.
[A] 7%
[B] 8%
[C] 5%
[D] 10%
Q.97) The Indian Five-Year Plan which saw the highest amount of consultation was

[B] Second Five-Year Plan
[D] Twelfth Five-Year Plan
Q.98) Which among the following statement(s) is/are correct with respect to the Twelfth
Five-Year Plan (2012-17)?
1. Growth rate of 12 per cent was targeted for the Plan.
2. It underlines the importance of stepping up efforts to achieve 4 per cent average

growth in the agriculture sector over the Plan period.
3. Commercial energy supply must grow at a pace of 6.5 to 7 per cent per year.

[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1 and 3 only
Q.99) The time period of the Twelfth Five Year Plan was
[A] 2010-2015
[B] 2012-2017
[C] 2007-2012
[D] 2014-2019
Q.100) The Five-Year plan that was implemented during an overall 'slowdown' in the economy, caused by
the South-East Asian Financial Crisis was _
[A] Fourth Five Year Plan
[B] Sixth Five Year Plan
[C] Eighth Five Year Plan

[D] Ninth Five Year Plan
Q.101) The Government of India delegated the responsibility of inflation stabilisation to the
Reserve Bank of India during which among the following Five-Year Plans?
[B] Third Five-Year Plan
[C] Fifth Five-Year Plan
[D] Seventh Five-Year Plan
Q.102) In which among the following Five Year Plans, Agriculture sector was declared a Prime
Moving Force (PMF) of the Indian Economy?
[A] First Five Year Plan
[B] Second Five Year Plan
[C] Third Five Year Plan
[D] Tenth Five Year Plan
Q.103) Plan Holiday in the context of Indian economy is
[A] Time period just after the implementation of the Economic reforms in India
[B] The years when instead of a Five-Year Plan, an Annual Plan was introduced
[C] The Years when neither a Five-Year Plan nor an Annual Plan is rolled out
[D] The time period during which industrialisation was not considered the main focus
Q.104) Which among the following is/are the characteristics of Five-Year Plans of India?
1. Most of the Five-Year Plans saw lower GDP growth rates than targeted.
2. Massive fluctuations were noticed across the plans.
3. Negative per capita income growth was recorded in some of the plan periods.
4. Agriculture growth has been highly volatile.

[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.105) The National Institution for Transforming India (NITI) Aayog was established on
[A] January 1, 2015
[B] February 20, 2015
[C] February 20, 2017
[D] December 1, 2015
Q.106) Which among the following is/are the feature(s) of NITI Aayog?
1. It is a 'Think Tank' of the Government of India established by an Act of the Indian Parliament.
2. The creation of NITI Aayog is focused on two hubs: Team India and the Knowledge and Innovation Hub.
3. NITI Aayog has been transforming itself into a cutting-edge resource
centre. Select the correct answer using the code given below:
[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1, 2 and 3
Q.107) The NITI Aayog is chaired by the
[A] President of India
[B] Finance Minister of India
[C] Home Minister of India
[D] Prime Minister of India

Q.108) Which among the following is not a function of NITI Aayog?
[A] Develop a shared vision of national development priority sectors
[B] To promote cooperative federalism
[C] To ensure that national security
[D] Implement Central Sector Schemes
Q.109) Which among the following prompted the establishment of NITI Aayog?
1. Inconsistencies like conflict between planning framework and market's role.
2. Inconsistencies like conflict between centralised authority over resource allocation and
the states developmental role.
3. Promoting greater accountability.
[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1, 2 and 3
Q.110) The number of critical areas identified by the NITI Aayog Strategy for New India @75 to
develop a new India by 2022 were?
[A] 21
[B] 31
[C] 11
[D] 41
Q.111) The 'NITI Aayog Strategy for New India @75' aims to make India a trillion economy by 2022-23.
[A] $4 trillion

[B] $5 trillion
[C] $3.5 trillion
[D] $3 trillion
Q.112) Which among the following contributes the most to plan financing in India?
[A] Deficit Financing
[B] Financing by RBI
[C] Domestic Budgetary Sources
[D] Foreign Assistance
Q.113) Which among the following statement(s) is/are correct with respect to 'Deficit Financing' in India?
1. The government resorts to withdrawing money from its cash deposited in the RBI.
2. The government orders the RBI to print new currency notes or borrows money from the
public in the form of bonds and other securities.
3. The government borrows money from the public in the form of bonds and other
securities. Select the correct answer using the code given below:
[A] 1 and 2 only
[B] 2 only
[C] 2 and 3 only
[D] 1, 2 and 3
Q.114) The Micro, Small, and Medium Enterprises (MSMEs) sector contributes to nearly ________ % of
manufacturing output in India.
[A] 37%
[B] 56%
[C] 78%
[D] 45%

Q.115) Priority Sector Lending norms applicable to banks involves lending to certain sectors of the
economy. It includes _
[A] Only those sectors that have the Scheduled Castes and Scheduled Tribes employed in majority
[B] Only those sectors that have a high proportion of women employed
[C] Only those sectors that contribute most to Indian GDP
[D] Only those sectors that have a substantial influence on vast portions of the
population and are employment-intensive
Q.116) The Micro, Small, and Medium Enterprises (MSMEs) sector contributes to about % of
exports in India.
[A] 28%
[B] 64%
[C] 20%
[D] 40%
Q.117) The current framework of Priority Sector Lending (PSL) in India dates back to the year.
[A] 1905
[B] 1925
[C] 1947
[D] 1967
Q.118) The Micro, Small, and Medium Enterprises (MSMEs) contributes to more than ______ % of
Gross Domestic Product (GDP) in India.
[A] 45%
[B] 40%
[C] 39%
[D] 28%
Q.119) Which among the following sectors are 'Priority Sectors' under Priority Sector Lending norms?
1. Agriculture
2. Micro, Small and Medium Enterprises (MSMEs)
3. Export Credit
4. Information Technology
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1 and 2 only
Q.120) What does ANBC stand for in terms of Priority Sector Lending?
[A] Appraised Net Bank Credit
[B] Appraised National Bank Credit
[C] Adjusted Net Balance Credit
[D] Adjusted Net Bank Credit
Q.121) What is CEOBE in the context of Priority Sector Lending in India?
[A] Capital Equivalent of Off Balance Sheet Exposure
[B] Credit Equivalent of Off Balance Sheet Exposure
[C] Cash Equivalent of Off Balance Sheet Exposure
[D] Cost Equivalent of Off Balance Sheet Exposure
Q.122) The Overall Priority Sector Lending target of Scheduled Commercial Banks in India is _
[A] 45 per cent of ANBC or CEOBE whichever is higher
[B] 50 per cent of ANBC or CEOBE whichever is higher

[C] 55 per cent of ANBC or CEOBE whichever is higher
[D] 40 per cent of ANBC or CEOBE whichever is higher
Q.123) The Overall Priority Sector Lending target of Regional Rural Banks in India is _
Q.124) The Overall Priority Sector Lending target of Small Finance Banks in India is _
Q.125) The Overall Priority Sector Lending target of Foreign Banks in India is _
[A] 35 per cent of ANBC or CEOBE whichever is lower
[C] 75 per cent of ANBC or CEOBE whichever is lower
Q.126) Out of the Overall Priority Sector Lending target of Foreign Banks (with less than 20
branches) in India upto percent can be in the form of lending to exports.
Q.127) Out of the Overall Priority Sector Lending target of Regional Rural Banks in India can be

reckoned for lending to Medium Enterprises, Social Infrastructure and Renewable Energy.
[A] 35 per cent of ANBC
[B] 25 per cent of ANBC
[C] 15 per cent of ANBC
[D] 5 per cent of ANBC
Q.128) The Priority Sector Lending target of Commercial Banks in India towards Agriculture sector is
[B] 7.5 per cent of ANBC or CEOBE whichever is higher
Q.129) Out of the Priority Sector Lending towards Agriculture sector by the
Commercial Banks in India per cent is prescribed for Small and Marginal
Farmers (SMFs).
[B] 1O per cent of ANBC or CEOBE whichever is higher
[D] 7.5 per cent of ANBC or CEOBE whichever is higher
Q.130) The Priority Sector Lending target of Commercial Banks in India towards Micro Enterprises sector

Q.131) The Priority Sector Lending target of Commercial Banks in India towards Weaker Sections is
[A] 7.5 per cent of ANBC or CEOBE whichever is higher
Q.132) The Priority Sector Lending target of Foreign banks with 20 branches and above, in India, towards
Agriculture is _
Q.133) The Priority Sector Lending target of Foreign banks with 20 branches and above, in India, towards
micro Enterprises is _
Q.134) The Priority Sector Lending target of Foreign banks with 20 branches and above, in
India, towards Weaker Sections is ----

Q.135) The Priority Sector Lending target of Foreign banks with less than 20 branches, in India, towards
Agriculture is .
[D] None of the above
Micro Enterprises is
[C] 7.5 per cent of ANBC or CEOBE whichever is higher
Weaker Sections is _
Q.138) The Priority Sector Lending target of Regional Rural Banks in India, towards Agriculture is

Q.139) Out of the Priority Sector Lending towards Agriculture sector by the Regional Rural Banks in India
per cent is prescribed for Small and Marginal Farmers (SMFs).
Q.140) The Priority Sector Lending target of Regional Rural Banks in India, towards Micro Enterprises is
[B] 1O per cent of ANBC or CEOBE whichever is higher
Q.141) The Priority Sector Lending target of Regional Rural Banks in India, towards Weaker Sections is
Q.142) The Priority Sector Lending target of Small Finance Banks in India, towards Agriculture sector is

Q.143) The Priority Sector Lending target of Small Finance Banks in India, towards Micro Enterprises is
Q.144) The Priority Sector Lending target of Small Finance Banks in India, towards Weaker Sections is
Q.145) For an Enterprise to be classified as a Micro enterprise, its investment in plant and
machinery or equipment should not exceed as per the definition of Micro, Small and
Medium Enterprises of the Government of India.
[A] 1 crore
[B] 5 crores
[C] 10 crores
[D] 50 crores
Q.146) For an Enterprise to be classified as a Small enterprise, its Annual turnover should not exceed
asper the definition of Micro, Small and Medium Enterprises of the Government of India.
[A] 1 crore

[B] 5 crores
[C] 10 crores
[D] 50 crores
Q.147) For an Enterprise to be classified as a Medium enterprise, its investment in plant and
machinery or equipment should not exceed as per the definition of Micro, Small and
Medium Enterprises of the Government of India.
[A] 1 crore
[B] 5 crores
[C] 10 crores
[D] 50 crores
Q.148) Which among the following statement(s) is/are correct with respect to the Micro, Small
and Medium Sector?
1. The sector has great employment potential although at a high capital cost.
2. Small and Medium Enterprises(SMEs) account for around 90 percent of businesses globally.
3. Small and Medium Enterprises (SMEs) account for more than 50 percent of
employment globally. Select the correct answer using the code given below:
[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1 and 3 only
Q.149) Which among the following statement is correct with respect to Micro
Small and Medium Enterprises Sector (MSME) in India?
[A] The growth rate of the MSME Sector has been continuously increasing since 2014-15 to 2018-19
[B] The percentage share of MSME Sector in GVA has been continuously increasing since
2014-15 to 2018- 19
[C] The percentage share of MSME Sector in All India GDP has been continuously increasing
since 2014-15 to 2018-19
Q.150) The MSME Sector has helped India achieve which among the following?
1. High contribution to domestic production
2. Significant export earnings
3. Low investment requirements
4. Low intensive imports
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.151) The Ministry of MSME has set a goal of increasing the MSME sector's contribution
to GDP to_ _ _ _ _ _ _ _ per cent, by 2025?
[A] 70%
[B] 60%
[C] 30%
[D] 50%
Q.152) Which among the following is not a pillar of the 'Make in India' initiative of the Government
of India?
[A] New Processes
[B] New Infrastructure
[C] New Sectors
[D] New Government

Q.153) Individual Micro and Small Enterprises can apply for collateral-free loans from the Ministry of
MSME and the Small Industries Development Bank of India (SIDB) up to __________.
[A] Rs. 1 crore
[B] Rs. 10 crore
[C] Rs. 20 lakhs
[D] Rs. 50 crore
Q.154) The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding
[A] Jute industry
[B] Cotton industry
[C] Horticulture sector
[D] Khadi Programme
Q.155) Which among the following statement(s) is/are correct with respect to 'Start-up India' Scheme?
1. It aims to support individuals that have recently formed their own start-ups
2. It aims to support businesses that have recently formed their own start-ups
3. The scheme offers better finance, including tax breaks, and ensuring that the process of
establishing a start-up in India is smooth and quick.
[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1, 2 and 3
Q.156) Which among the following is not a target beneficiary of the Stand-up India Scheme?
[A] Females
[B] People belonging to Scheduled Caste
[C] People belonging to Scheduled Tribe
[D] Physically Handicapped
Q.157) Which among the following is not a part of the PLI sector?
[A] Pharmaceutical Drugs
[B] Food Products
[C] Speciality Steel
[D] Agriculture
Q.158) Udyami Mitra Portal has been launched by _
[A] Union Ministry of Electronics and Information Technology
[B] Reserve Bank of India (RBI)
[C] Small Industries Development Bank of India (SIDBI)
[D] National Bank for Agriculture and Rural Development (NABARD)
Q.159) MSME Sambandh aims at monitoring which among the following?
[A] Credit access to MSMEs
[B] Technology upgradation of MSMEs
[C] Investment growth in MSMEs
[D] Public Procurement
Q.160) The implementing agency of the Prime Minister Employment Generation Programme at
the National level is
[A] Union Ministry of Labour & Employment
[B] National Skill Development Corporation
[C] Khadi and Village Industries Commission (KVIC)

[D] Small Industries Development Bank of India (SIDBI)
Q.161) The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is an initiative
of which among the following?
[A] Ministry of Electronics and Information Technology
[B] MSME Ministry
[C] Ministry of Labour
[D] Ministry of Culture
Q.162) The National Manufacturing Competitiveness Programme (NMCP) was

formulated for ________years
[A] 3 years
[B] 4 years
[C] 5 years
[D] 7 years
Q.163) Which among the following acts as the Principal Financial Institution for Promotion,
Financing and Development of MSMEs?
[A] Reserve Bank of India (RBI)
[B] Small Industries Development Bank of India (SIDBI)
[C] Mudra Bank
[D] EXIM Bank
Q.164) Which among the following is not an example of Hard Infrastructure?
[A] Roads
[B] Ports
[C] Airports
[D] Healthcare

Q.165) India's ranking in the Renewable Energy power capacity in the world is _
[A] 1st
[B] 2nd
[C] 3rd
[D] 4th
Q.166) The Foreign Direct Investment cap in the Telecom sector is
[A] 25%
[B] 49%
[C] 51 %
[D] 100%
Q.167) Tarang Sanchar is a web portal for which among the following?
[A] Information sharing on e-commerce
[B] Monitoring of Schemes for the welfare of Scheduled Tribes
[C] Monitoring of Schemes for the welfare of Scheduled Castes
[D] Information sharing on Mobile Towers and Electromagnetic frequency (EMF) Emission Compliance
Q.168) The National Optical Fiber Network (NOFN) of the Government of India aims to provide
broadband connectivity to
[A] City dwellers
[B] Slum dwellers
[C] Gram Panchayats
[D] Government Departments
Q.169) Which among the following is/are the example(s) of Critical Infrastructure?
1. Electricity generation

2. Gas production
3. Telecommunication
4. Water supply
[A] 1 and 2 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.170) As per the Central Pollution Control Board, India's current water treatment capacity is nearly
[A] 27.3%
[B] 14%
[C] 18.6%
[D] 55%
Q.171) The PM Gati Shakti initiative of the Indian Government aims at bringing of rail
network under Kavach in 2022-23.
[A] 1000 km
[B] 2000 km
[C] 3000 km
[D] 4000 km
Q.172) Urban areas account for about _____________ per cent of Government Revenues.
[A] 30%
[B] 50%
[C] 70%

[D] 90%
Q.173) Which among the following is not an example of 'Green Infrastructure'?
[A] Wildlife Sanctuary
[B] Green belts
[C] Bird Sanctuaries
[D] National Highways
Q.174) Which among the following is/are the included in Social Infrastructure of an economy?
1. Health
2. Education
3. Water supply
4. Management of natural resources
[A] 1 and 3 only
[B] 1, 2 and 3 only
[C] 2, 3 and 4 only
[D] 1, 2, 3 and 4
Q.175) At the time of independence the life expectancy of India was about _______________ year at birth
[A] 20
[B] 25
[C] 32.5
[D] 56
Q.176) The three most essential factors which determine the long-term and ethical impact of a business
or
company investment referred to as ESG are _
[A] Environmental, Social, and Governance

[B] Environmental, Scientific and Governance
[C] Economic, Social and Governance
[D] Economic, Scientific, and Governance
Q.177) The 2017 National Health Policy aimed to boost government health spending to _______ per cent
of GDP by 2025.
[A] 2%
[B] 2.5%
[C] 3%
[D] 4%
Q.178) The Ayushman Bharat Health Infrastructure Mission was launched in the Union Budget 2021-22 to
be implemented over the next years.
[A] One
[B] Two
[C] Three
[D] Five
Q.179) The expenditure towards the education sector has been nearly percent of total expenditure.
[A] 3%
[B] 9%
[C] 20%
[D] 36%
Q.180) Which among the following is not a pillar of the National Education Policy 2022?
[A] Accessibility
[B] Equity
[C] Quantity

[D] Quality
Q.181) In 1952, became the first Country in the world to implement a National Programme for
Family Planning.
[A] China
[B] South Korea
[C] Japan
[D] India
Q.182) Which among the following statement(s) is/are not correct with respect to the Social
Service Sector Expenditure by the Central and State Governments of India?
[A] The expenditure on social service is about 6.8% of GDP in 2021-22
[B] The expenditure on Education is about 9.7% of total expenditure in 2021-22
[C] The expenditure on Health is about 2.1% of GDP in 2021-22
[D] The expenditure on Education is about 36.6% of the total expenditure on Social services in 2021-22
Q.183) The PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) is the largest pan-
India public health infrastructure initiative aimed to benefit which among the following?
1. Primary healthcare sector
2. Secondary healthcare sector
3. Tertiary healthcare sector
[A] 1 and 2 only
[B] 1 only
[C] 2 and 3 only
[D] 1, 2 and 3
Q.184) is the core and fundamental goal of family welfare programme in India.
[A] Better education

[B] Higher literacy
[C] Better quality of life
[D] Population management
Q.185) Globalisation is defined as a rise in among nations
[A] Economic integration
[B] Political integration
[C] Spiritual integration
[D] Intellectual integration
Q.186) The term Globalisation was popularised in the mid-1980s by the _________.
[A] World Trade Organisation (WTO)
[B] International Monetary Fund (IMF)
[C] Organisation for Economic Cooperation and Development (OECD)
[D] World Bank (WB)
Q.187) The concept of Globalisation was formally introduced in India__________.
[A] The years after independence.
[B] With the introduction of the Green revolution in the 1960s
[C] With the introduction of the new economic policy in 1991-92
[D] With the introduction of reforms during the Lehman collapse
Q.188) Which among the following is not a benefit of globalisation?
[A] Technology transfer
[B] Job creation
[C] Political stability
[D] Economic development

Q.189) Which among the following is/are the benefit(s) of globalisation to India?
1. Increased per capita income
2. Better employment opportunities
3. More options for customers.
4. Mobilising large investments in the agriculture sector.
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.190) Which among the following is/are the requirment(s) of Fair Globalisation?
1. Advantages of globalisation are shared equally among nations and people.
2. Govermment measures must safeguard the interests of all citizens.
3. Fair, inclusive, democratically governed activities of Globalisation.
4. Inclusion of sound institutions are required to promote opportunity and enterprise.
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.191) Which among the following is a characteristic of 'De-globalisation'?
1. Reducing dependency amongst nations.
2. Reducing integration amongst nations.
3. Increasing protectionism.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.192) Which among the following is not a protectionism measure?

[A] Increased tariff
[B] Increased quota
[C] Non-tariff barriers
[D] Increased capital account convertibility
Q.193) Fair globalisation must be supported by the interdependent and mutually reinforcing pillars of
1. Economic development
2. Social development
3. Environmental protection
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.194) The Levelling: What's Next After Globalisation is a book written by
[A] Michael O'Sullivan
[B] Philip Francis
[C] R.C. Desai
[D] C.N. Vakil
Q.195) Economic reform refers to the process, whereby, a government specifies _
[A] A declining role for the private sector or an expanding one for the state in the economy.
[B] A declining role for the state or an expanding one for the private sector in the economy.

[C] A declining role for both the state and the private sector in the economy.
[D] An expanding one for both the state and the private sector in the economy.
Q.196) The 1980s reforms in India were influenced by the _
[A] Bretton Woods Conference
[B] General Agreement on Tariffs and Trade (GATT)
[C] Conference on International Economic
[D] Washington Consensus
Q.197) The reasons for the implementation of Economic reforms in India in 1991 were
1. Adverse balance of payments
2. Poor performance of the public sector
3. A drop in foreign exchange reserves
4. Large government debts
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.198) Which is not one of the primary pillars of the 1991 economic reforms?
[A] Automation
[B] Liberalisation
[C] Globalisation
[D] Privatisation
Q.199) The most important goals of the Economic reforms of 1991 are
1. Lowering inflation

2. Minimising the current account deficit
3. Attracting significant foreign direct investment
4. Increasing foreign trade
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.200) The changes brought about due to the reforms of 1991 were
1. Reduced poverty
2. Enhanced capacity in agriculture and industrial output
3. Improved the socioeconomic indices
4. Improved level of living among common people.

[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.201) Which among the following is the changes brought about as part of the Liberalisation
introduced during the reforms to Indian economy in 1991?
1. Relaxing regulations imposed on trade agreements.
2. Opening of economic frontiers for international investors and multinationals.
3. Enhanced production capacity.
4. Abolition of government industrial licencing.
[A] 1, 2 and 3 only
[B] 1, 2 and 4 only
[C] 1, 3 and 4 only

[D] 1, 2, 3 and 4
Q.202) Which among the following is the changes brought about as part of the Privatisation
introduced during the reforms to Indian economy in 1991?
1. Providing the private sector more opportunities.
2. Inviting more foreign participation.
3. Inviting more FDI.
4. Providing healthy competition to Indian goods and services
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.203) Which among the following Committees was formed in 1985 to review Monetary Policy in India?
[A] Verma Committee
[B] Narsimham Committee-I
[C] Chakravarti Committee
[D] Narsimham Committee-II
Q.204) The Narsimham Committee-I was formed in 1991 with respect to which among the following?
[A] Financial Sector Reforms
[B] Monetary Policy Reforms
[C] Reviewing Bank Supervision
[D] Weak Banks
Q.205) Which among the following Committees were formed to review Indian Bank Supervision in 1996?
[A] Chakravarti Committee

[C] Padmanabhan Committee
[D] Verma Committee
Q.206) The Narsimham Committee - II formed in 1997 aims at which among the following?
[A] Monetary Policy reforms
[B] Review Bank Supervision
[C] Banking Sector Reforms
[D] Weak Banks
Q.207) Which among the following Committees was formed in 1998 to review Weak Banks in India?
[A] Chakravarti Committee
[C] Padmanabhan Committee
[D] Verma Committee
Q.208) The RH Khan Committee formed in the year 1998 aimed at which among the following?
[A] Monetary Policy Reforms
[B] Reviewing Bank Supervision
[C] Banking Sector Reforms
[D] Weak Banks
Q.209) Which among the following was/were the reform(s) introduced as per the
recommendations of Narsimham Committee I of 19927
1. Capital adequacy norms
2. Progressive reduction of Cash Reserve Ratio and Statutory Liquidity Ratio
3. Deregulation of Lending rates

4. Strong Supervisory System,
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.210) The Second phase of reforms under the Narsimham Committee were recommended in the year
[A] 1987
[B] 1992
[C] 1996
[D] 1998
Q.211) Which among the following is not a part of the supervisory reforms, CAMELS?
[A] Capital Adequacy
[B] Asset quality
[C] Merger
[D] Earnings
Q.212) Which among the following measures were not taken by the Indian Government to
make Indian banks competitive?
[A] Extension of Public Sector Banks (PSBs)' Autonomy
[B] Lowering of public ownership in Public Sector Banks
[C] Restricting the operation of private and international banks in India
[D] Allowed PSBs to obtain capital from the stock market
Q.213) Which among the following is not a market reforms introduced by the Indian
government to improve the Indian Financial System?
[A] Reduction of CRR and SLR rates
[B] Discontinuation of ad hoc treasury bills
[C] Government administered pricing for government securities
[D] Establishment of a pure inter-bank call money market
Q.214) The Banking Ombudsman Scheme was introduced in India in the year _
[A] 1985
[B] 1990
[C] 1994
[D] 1995
Q.215) INFINET was launched in India so as to provide for _
[A] Seamless financial transactions
[B] Tracking technology usage in the Financial sector
[C] Financial sector's communication backbone
[D] Direct Benefit Transfers
Q.216) Which among the following is not a measure included in the Debt Market Reforms
introduced by the Indian Government?
[A] Introduction of 91-day Treasury Bill
[B] Foreign Institutional Investors (Flis) were restricted while investing in government securities
[C] Introduction of automated screen-based trading in government securities
[D] Setting up of risk-free payments and settlement system in government securities
Q.217) Which among the following is not a Foreign Exchange Market Reform taken by
the Indian Government?
[A] Transition to a market-determined floating exchange rate system
[B] Increase in foreign exchange market instruments

[C] Replacing Foreign Exchange Management Act with the Foreign Exchange Regulation Act (FERA)
[D] Authorised dealers permitted to initiate trading positions
Q.218) Which among the following is not a measure taken as a reform in the Insurance Sector by
the Indian Government and Insurance companies in India?
[A] Creation of the Insurance Regulatory and Development Agency (IRDA)
[B] Cross-selling of products through Bancassurance
[C] Better technical know-how consequent upon foreign collaboration
[D] Weakening of the agency network
Q.219) Which among the following is not an instrument used by Indian Corporate Sector to
access funds from international capital markets?
[A] ADRs
[B] GDRs
[C] FCCBs
[D] IPOs
Q.220) The net inflows of foreign direct investment (FDI) into India are about per cent of GDP.
[A] 15.5%
[B] 37.9%
[C] 55.6%
[D] 2.5%
Q.221) Some of the failures of Indian economy as highlighted by Jagdish Bhagwati were?
1. Strong bureaucratic controls over production, investment, and trade
2. Inward-looking trade and foreign investment policies
3. Inefficient public-sector enterprise functioning.

[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.222) Which among the following is not the reason for the Balance of Payment crisis in India in 1991?
[A] Oil shock of 1990
[B] Higher fiscal deficit
[C] Higher Current Account Deficit
[D] Low inflation rates
Q.223) The fiscal deficit during the Balance of Payment crisis of India in 1990 was about?
[A] 5.1%
[B] 2.5%
[C] 8.4%
[D] 10.2%
Q.224) The Current Account Deficit in India during the time of Balance of Payment crisis was?
[A] 5.1%
[B] 8.4%
[C] 3.69%
[D] 1.35%
Q.225) The inflation rate in India during 1990-91 was about .
[A] 5%
[B] 11.3%
[C] 2.5%

[D] 25%
Q.226) Which among the following statement(s) is/are correct with respect to the Foreign
Trade Policy of India?
1. It refers to the economic policy that governs an economy's export-import activity.
2. It is a set of guidelines and instructions established by the Directorate General of Foreign Trade (DGFT).
3. The new FTP of India came into force in the year 2016.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.227) The New Foreign Policy of India (2015-2020) aims at increasing India's merchandise and services
exports to by 2019-20.
[A] $900 billion
[B] $700 billion
[C] $600 billion
[D] $500 billion
Q.228) The New Foreign Policy of India (2015-2020) aims at increasing India's share of global exports to
[A] 1%
[B] 2%
[C] 2.5%
[D] 3.5%
Q.229) The Foreign Trade Policy 2015-20 led to the launch of which among the following scheme(s)?
1. Merchandise Exports from India Scheme (MEIS)

2. Services Exports from India Scheme (SEIS)
3. Agricultural Infrastructure Incentive Scrip
4. Vishesh Krishi Gram Udyog Yojana (VKGUY)
[A] 1 and 2 only
[B] 2 and 4 only
[C] 3 and 4 only
[D] 1, 2 and 3 only
Q.230) Which among the following scheme(s) have been merged into a single scheme
Merchandise India Scheme (MEIS)?
1. Focus Product Scheme
2. Market Linked Focus Product Scheme
3. Focus Market Scheme
4. Agricultural Infrastructure Incentive Scrip

[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.231) The Scrips issued under Merchandise India Scheme (MEIS) can be used for payment of
which among the following?
[A] Customs duty for import of inputs/goods
[B] Integrated Goods and Services Tax (IGST)
[C] Central Goods and Services Tax (CGST)
[D] State Goods and Services Tax (SGST)
Q.232) Scrips issued under Exports from India Schemes can be used for the payments of which
among the following?
1. Customs duty for import of inputs/goods

2. Excise duty on domestic procurement of inputs or goods
3. Tax on procurement of services
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.233) Under the Export Promotion Capital Goods (EPCG) plan, if capital goods were purchased from
domestic producers, the particular export obligation was decreased to _
[A] 25 per cent
[B] 50 per cent
[C] 65 per cent
[D] 75 per cent
Q.234) Which among the following was/were the Trade Facilitation and Ease of doing
business reforms under the Merchandise Export from India Scheme (MEIS) & Services Export
from India Scheme (SEIS)?
1. Hard copies of applications and specified papers were no longer required.
2. Landing paperwork for export consignments were allowed to be submitted digitally as evidence.
3. Once permanent records/ documents are uploaded in the exporter/importer profile, there
was no need to provide copies with each application.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.235) Which among the following is/are eligible for availing the benefits of Merchandise Exports
from India Scheme (MEIS)?
1. E-commerce exports of handloom products

2. Books/periodicals
3. Leather footwear
4. Toys and customised fashion garments through courier or foreign post office
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.236) Which among the following is a provision of the 'Approved Exporter System' under
the Foreign Trade Policy 2015-20?
[A] Reducing specific export obligation to 75 per cent for indigenous manufacturers
[B] Boost to exports of defence and hi-tech items
[C] Manufacturers can self-certify their manufactured goods so that they qualify for preferential
treatment
[D] Promoting exports of notified services
Q.237) E-commerce exports of handloom products of values up to can get the

benefit of Merchandise Exports from India Scheme (MEIS).
[A] Rs. 10,000
[B] Rs. 15,000
[C] Rs. 20,000
[D] Rs. 25,000
Q.238) Which among the following is/are the changes that will be helping India to obtain an edge in
Trade?
1. Diversification of import sources and export destinations.
2. Reducing the dependency on a few countries for import of specific products.
3. Exploring unexplored products for exports.

[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.239) A Foreign Direct Investment (FDI) is an investment made in a country by a foreign investor to
1. Investing short-term capital in stocks or hedge funds.
2. Control the ownership of an entity.
3. Invest in the machinery of an Indian
company. Select the correct answer using
the code given below:
[A] 1 only
[B] 3 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.240) The most important sectors that have been recently liberalised for investing through
the Foreign Direct Investment (FDI) are
1. Defence
2. Construction
3. Broadcasting
4. Civil aviation
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only

[D] 1, 2, 3 and 4
Q.241) Net Foreign Direct Investment (FDI) in India has increased to __________ by 2021-22.
[A] $20 billion
[B] $36.6 billion
[C] $6.5 billion
[D] $23 billion
Q.242) The number of Routes through which Foreign Direct Investment (FDI) can enter India is _
[A] 2
[B] 3
[C] 4
[D] 5
Q.243) The Indian firm that receives Foreign Direct Investment (FDI) through the automatic
route must follow which among the following?
1. Report to the Foreign Exchange Department and Regional Office concerned of the RBI
2. Issuing shares to the RBI.
3. Take the permission of the Cabinet Committee on Economic Affairs.
[A] 1 only
[B] 3 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.244) Proposals involving a total foreign equity infusion through the Government Route of
Foreign Direct Investment (FDI) of more than crores require clearance from the Cabinet
Committee on Economic Affairs.
[A] Rs. 1000 crores

[B] Rs. 1500 crores
[C] Rs. 2000 crores
[D] Rs. 5000 crores
Q.245) The Foreign Direct Investment Limit allowed in Agriculture & Animal Husbandry in India is
[A] 100% investment through the Automatic route
[B] 49% investment through the Government route
[C] 26% investment through the Government route
[D] 51% investment through the Automatic route
Q.246) The Foreign Direct Investment Limit allowed in Plantation Sector in India is
[B] 74% investment through the Automatic route
[C] 51% investment through the Automatic route
[D] 26% investment through the Government route
Q.247) The Foreign Direct Investment Limit allowed in Defence Manufacturing including access
to modern technology in India is
Q.248) The Foreign Direct Investment Limit allowed in Print Media in India is

Q.249) FDI limit in Private banking is
[A] 20%
[B] 26%
[C] 49%
[D] 74%
Q.250) FDI limit in Insurance Sector is _

[A] 20%
[B] 26%
[C] 51%
[D] 74%
Q.251) FDI limit in Pension Sector is _
[A] 20%
[B] 26%
[C] 49%
[D] 51%
Q.252) FDI limit in White label ATM Operations is
[A] 20%
[B] 26%
[C] 49%
[D] 100%
Q.253) FDI limit in Financial Services activities regulated by RBI is _
[A] 26% investment through the Government route

Q.254) FDI limit in Financial Services activities regulated by SEBI is _
Q.255) FDI limit in Financial Services activities regulated by any Financial Regulator in India is _
Q.256) An investment in which Daiichi Sankyo of Japan acquires Ranbaxy India is an example
of which among the following?
[A] Green Foreign Direct Investment
[B] Greenfield Foreign Direct Investment
[C] Brownfield Foreign Direct Investment
[D] Joint Venture Foreign Direct Investment
Q.257) An investment in which a parent corporation establishes a subsidiary in the destination country
and it builds operations from the scratch is ____________.
[A] Brown Foreign Direct Investment
[B] Greenfield Foreign Direct Investment
[C] Brownfield Foreign Direct Investment

Q.258) A Foreign Direct Investment in which a foreign company and a local company join up to share
investment is .
[A] Brown Foreign Direct Investment
[B] Brownfield Foreign Direct Investment
[C] Green Foreign Direct Investment
Q.259) FOi in India is prohibited in which of the sectors?
[A] Defence
[B] Irrigation
[C] Health
[D] Lottery Business
Q.260) Which among the following is known as 'Hot Money'?
[A] FDI
[B] FIi
[C] FPI
[D] All of the above
Q.261) FDI from Pakistan is placed under .
[A] Automatic route
[B] Partially under automatic route and partially under government route.
[C] Prohibited category of FDI
[D] Government route

Q.262) Which among the following statement is correct with respect to Foreign Direct
Investment and Foreign Institutional Investment?
[A] Foreign Direct Investment goes into hedge funds.
[B] Foreign Direct Investment goes into short-term equities.
[C] Foreign Institutional Investment goes directly into production of goods and services.
[D] Foreign Direct Investment goes into long-term perspective.
Q.263) Which among the following statement is correct with respect to Foreign Direct Investment?
[A] Foreign Direct Investment contributes into GDP of a country by way of production of goods and
services
[B] Foreign Direct Investment does not go into production activities but in short-term equities
[C] Foreign Direct Investment can be recalled by the investor at any time
[D] Foreign Direct Investment is generally volatile in nature
Q.264) Which among the following statement(s) is/are correct with respect to Foreign
Institutional Investment?
1. It depends upon the arbitrage and hedging variations across different parts of the world.
2. It has a long-term perspective.
3. It is called Hot money and takes the form of hedge funds.
[A] 1 only
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1 and 3 only
Q.265) Which among the following statement is correct with respect to Economic Development?
[A] Apart from national income growth, it encompasses social, cultural, political, and
economic developments.
[B] When compared to Economic growth, economic development is a restricted term

[C] It entails rise in output only in quantitative terms
[D] Economic growth is a wider concept than Economic Development
Q.266) Which among the following statement is correct with respect to 'Economic growth'?
1. It gives an idea of the economy's actual national and per capita income grows over time.
2. When compared to economic development, economic growth is a restricted term.
3. It entails a rise in output in quantitative terms, but it also includes qualitative changes
such as social attitudes and behaviours.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.267) Which among the following statement is correct?
[A] Economic Development refers to the increment in amount of goods and services
produced in an economy
[B] Economic Development refers to the reduction and elimination of poverty,

inequality and unemployment
[C] Economic Development means an increase in real national income in quantitative terms
[D] Economic growth means an improvement in the quality of life and living standards
Q.268) Which among the following statement is correct with respect to Economic growth?
[A] Economic growth focuses on production of goods and services
[B] Economic growth mainly focuses on distribution of goods and services
[C] Economic growth is multi dimensional and focuses both on income and
improvement of living standards of the people.
[D] Economic growth comes after economic development.
Q.269) Which among the following is the indicator of Economic growth?

[A] Gross Domestic Product (GDP)
[B] Human Development Index (HDI)
[C] Human Poverty Index (HPI)
[D] GINI Coefficient
Q.270) Which among the following statement is correct with respect to Economic growth
and Economic development?
[A] Economic development only looks at the quantitative aspect of an economy
[B] Economic growth refers to increase in productivity
[C] Economic growth is a wider concept than economic development
[D] Economic growth is more relevant metric for assessing progress in developed countries
Q.271) Which among the following is/are known as Bretton Woods Institutions?
1. World Trade Organization (WTO)
2. International Monetary Fund (IMF)
3. World Bank (WB)
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.272) The International Monetary Fund (IMF) was formed in the year
[A] 1930
[B] 1944
[C] 1945
[D] 1995

Q.273) India became a member of IMF in the year _
[A] 1944
[B] 1945
[C] 1947
[D] 1999
Q.274) Which among the following is/are the function(s) of the International Monetary Fund (IMF)?
1. IMF members are required to pursue economic policies that are consistent with the IMF's goals.
2. The IMF can help member nations to comply with IMF's goals but does not have the legal
authority to supervise member compliance.
3. During a temporary balance of payment crisis, the IMF loans to member countries to
help them implement corrective measures.
4. The IMF serves as a catalyst assisting member nations in mobilising external funding.
[A] 1, 2 and 3 only
[B] 1 and 2 only
[C] 2, 3 and 4 only
[D] 1, 3 and 4 only
Q.275) Which among the following statement(s) is/are correct with respect to the
International Monetary Fund (IMF)?
1. The IMF makes concessional loans to poor countries in order to support their efforts to reduce poverty.
2. The IMF participates in the Heavily Indebted Poor Countries (HIPC) Initiative.
3. Before committing their own resources to a nation, bilateral and multilateral lenders and
donors rely on an IMF endorsement of that country's economic policies.
[A] 1 only
[B] 2 only
[C] 1 and 2 only

[D] 1, 2 and 3

1. The International Monetary Fund (IMF) acts as a forum for members to consult and
collaborate on international monetary and financial issues.
2. The IMF collaborates with other multilateral organisations to develop international standards.
3. To augment international liquidity, the IMF established an international reserve asset, known
as Special Drawing Rights (SDRs) in 1996.
[A] 2 only
[B] 3 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.277) Which among the following is/are the function(s) of the International Monetary Fund (IMF)?
1. The IMF offers technical support and training to member nations in order to assist them in
developing economic policies.
2. It assists member countries, in reducing the risk of policy failures and increasing their
resilience to shocks.
3. The IMF conducts economic analyses of its member nations.
4. It disseminates data through a variety of economic reports and research projects.
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.278) Which among the following countries became the founding members of the International
Monetary Fund (IMF)?
1. Belgium
2. Canada
3. China
4. India
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.279) Who among the following is the ex-officio Governor on the Board of Governors of
the International Monetary Fund from India?
[A] Finance Secretary
[B] Union Finance Minister
[C] Governor of RBI
[D] Any Member of RBI
1. India is a founding member of the international Monetary Fund (IMF).
2. Union Finance Minister is the ex-officio Governor on the Board of Governors of the IMF.
3. In 1970, India was given a permanent seat on the executive board of directors.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.281) India's current IMF quota gives India per cent stake.
[A] 1%
[B] 1.5%
[C] 2.76%
[D] 3.89%
Q.282) India is International Monetary Fund's largest quota holding member.
[A] Second
[B] Third
[C] Fourth
[D] Sixth
Q.283) Which among the following statement is not correct with respect to the Special Drawing
Rights (SDR) of the International Monetary Fund (IMF)?
[A] The SDR was created as a supplementary international reserve asset, in the context of
the Bretton Woods fixed exchange rate system.
[B] The SDR serves as the unit of account of the IMF and other international organisations.
[C] The shift of major currencies to floating exchange rate regimes, lessened the reliance on the
SDR, as a global reserve asset.
[D] The SDR is an international currency.
Q.284) The Special Drawing Rights (SOR) of the International Monetary Fund (IMF) was initially
defined as equivalent to _
[A] 0.888671 grams of fine bronze
[B] 0.888671 grams of fine silver
[C] 0.888671 grams of fine gold
[D] 1O US dollars
Q.285) Which among the following is a criterion which is required to be satisfied by a currency
to be part of the International Monetary Fund (IMF)'s SOR basket of currencies?
1. The issuer of the currency should be a member of IMF.
2. The issuer of the currency is one of the top five world exporters.
3. The issuer of the currency can be a part of a monetary union that includes IMF members.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.286) Which among the following is a criterion which is required to be satisfied by a currency
to be part of the International Monetary Fund (IMF)'s SOR basket of currencies?
1. The currency should be widely used to make payments for international transactions.
2. The currency should be widely traded in the principal exchange markets.
3. The currency can be used in Fund financial transactions.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.287) Which among the following is not one of currency included in the baskets of five
currencies used for SDR valuation?
[A] US Dollar
[B] Canadian Dollar
[C] Japanese Yen
[D] Chinese Renminbi
Q.288) The valuation of the Special Drawing Rights (SDRs) is done based on five currencies. It is
reviewed every years.
[A] Two
[B] Three
[C] Four
[D] Five

Q.289) The value of the Special Drawing rights (SDRs) of the International Monetary
Fund (IMF) is determined based on market exchange rates.
[A] Daily
[B] Weekly
[C] Monthly
[D] Quarterly
Q.290) Which among the following emerged out of the United Nations Monetary and Financial
Conference held in 1944?
[A] World Bank
[B] World Trade Organisation
[C] Asian Development Bank
[D] New Development Bank
Q.291) Which among the following statement(s) is/are correct with respect to World Bank?
1. It emerged from the Bretton Woods Conference held in 1944.
2. Its formation was aimed at assisting in the rebuilding of Western Europe following
World War-II devastation.
3. After accomplishing this historic task, its efforts have been directed towards alleviating
poverty in developing countries.
[A] 1 only
[B] 3 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.292) Which among the following are fields in which World Bank's activities are focused?
1. Human Development
2. Agriculture and Rural development
3. Poverty Alleviation

4. Environmental pollution
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.293) The World Bank has provided technical and/or monetary assistance to which among
the following initiatives of the Indian Government?
1. Swachh Bharat Mission
2. Sarva Shiksha Abhiyan
3. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
4. Project Neeranchal
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.294) Which among the following statement(s) is/are not correct?
[A] The World Bank makes low-interest loans to member nations.
[B] The World Bank provides grants to the poorest countries.
[C] The International Bank for Reconstruction and Development (IBRD) concentrates on
middle-income countries.
[D] The International Bank for Reconstruction and Development (IBRD) concentrates on
world's poorest countries.

Q.295) The World Bank group is a collection of number of international institutions headquartered
[A] Two
[B] Three
[C] Four
[D] Five
Q.296) India is not one of the founding members of which of the Institutions?
[A] International Development Association (IDA)
[B] International Bank for Reconstruction and Development (IBRD)
[C] Multilateral Investment Guarantee Agency (MIGA)
[D] International Finance Corporation (IFC)
Q.297) Which among the following is not one of the institution/organisation included under the
World Bank Group (WBG)?
[A] International Bank for Reconstruction and Development (IBRD)
[B] International Development Association (IDA)
[C] International Finance Corporation (IFC)
[D] International Monetary Fund (IMF)
Q.298) Which among the following statement is incorrect with respect to the World Bank Group (WBG)?
[A] WBG is owned by its member countries who contribute to its basic share capital.
[B] The members who contribute to the basic share capital of WBG have voting rights
proportionate to their shareholding
[C] Additional votes conferred on member nations is contingent on financial

contributions to the organisation.
[D] WB does not raise any funds from the international credit markets.

Q.299) International Centre for Settlement of Investment Disputes (ICSID) was founded in the year
[A] 1944
[B] 1947
[C] 1948
[D] 1966
Q.300) The Multilateral Investment Guarantee Agency (MIGA) encourages foreign direct
investment into developing countries by protecting investors against which among the
following?
1. Commercial risks.
2. Non-commercial risks.
3. Political risks.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.301) is International Finance Corporation (IFC)'s single largest country exposure

globally and IFC's largest advisory client.
[A] China
[B] India
[C] Japan
[D] United States of America
Q.302) Which among the following statement is not correct with respect to the International
Development Association (IDA)?

[A] It was established in 1960 to support the world's poorest countries
[B] It is responsible for primarily delivering short-term, interest-free loans to around 80 of

the world's poorest countries
[C] IDA repayments are spread out over 25 to 40 years, with a five- to ten-year grace period in between.
[D] It makes grants to nations that are in debt difficulties.
Q.303) The International Development Association (IDA) was established in ___________.
[A] 1947
[B] 1945
[C] 1950
[D] 1960
Q.304) The International Bank of Reconstruction and Development (IBRD) mainly focuses on
1. High-income countries.
2. Middle-income countries.
3. Creditworthy low-income countries.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.305) India is not a member of which among the following?
[A] International Bank for Reconstruction and Development (IBRD)
[B] International Development Association (IDA)
[C] International Finance Corporation (IFC)
[D] International Centre for Settlement of Investment Disputes (ICSID)

Q.306) The World Bank started assisting India in the year _
[A] 1947
[B] 1948
[C] 1950
[D] 1957
Q.307) Which among the following is/are the advantage(s) of borrowing from the World Bank?
1. The borrowing is of low-cost.
2. The financing is stable.
3. The borrowing has extended maturity periods.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.308) Which among the following statement is not correct?
[A] The International Monetary Fund oversees the international monetary system.
[B] The World Bank Group comprises of five institutions.
[C] The World Bank Group seeks to promote the economic development of the world's poorest countries.
[D] The International Monetary Fund is a collection of five institutions
Q.309) Which among the following statement is not correct with respect to the
International Monetary Fund?
[A] It promotes exchange rate stability in its member countries and globally
[B] It promotes monetary stability in its member countries and globally

[C] It assists developing countries through long-term financing of development projects and programmes
[D] It assists BoP bailout funds, by providing short- to medium-term credits
Q.310) Which among the following statement is correct with respect to the World Bank Group?
[A] It encourages private enterprises in developing countries through its affiliate, the
International Finance Corporation (IFC)
[B] It assists with BoP bailout funds, by providing short-to medium-term credits
[C] It has insurance and arbitration wings
[D] International Bank for Reconstruction and Development (IBRD) and IFC acquire most of
their financial resources by borrowing from the international bond market.
Q.311) The General Agreement on Tariffs and Trade (GATT) came into effect in the year _
[A] 1948
[B] 1931
[C] 1994
[D] 1995
Q.312) The headquarters of World Trade Organization is at _
[A] Washington D.C.
[B] New York
[C] Beijing
[D] Geneva
Q.313) Which among the following statement is not correct with respect to the General
Agreement on Tariffs and Trade (GATT) and the World Trade Organisation (WTO)?
[A] The General Agreement on Tariffs and Trade (GATT) was signed by 23 nations in the year 1947.
[B] India was not a founding member of the GATT.

[C] On January 1, 1995, the World Trade Organisation (WTO) was formed.
[D] Geneva is the headquarters of the World Trade organization.
Q.314) The WTO's top decision-making body, the Ministerial Conference of trade/commerce ministers,
meets roughly every years.
[A] Two
[B] Three
[C] Four
[D] Five
Q.315) Which among the following is/are function(s) of the World Trade Organisation (WTO)?
1. Administering WTO trade agreements
2. Providing forum for trade negotiations
3. Handling trade disputes
4. Monitoring national trade policies
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.316) WTO was conceived during the eighth GATT cycle as part of the round of negotiations
[A] Bali round

[B] Geneva round
[C] Doha round
[D] Uruguay round

Q.317) India has been a member of the World Trade Organization (WTO) since the year _
[A] 1947
[B] 1948
[C] 1966
[D] 1995
Q.318) The 12th Ministerial Conference of the World Trade Organisation was held at
[A] Singapore
[B] Geneva
[C] Seattle
[D] Bali
Q.319) The WTO members reached historic agreements on response to which among the following?
1. Fishing subsidies.
2. Food insecurity.
3. COVID-19 vaccinations.
4. Eco-friendly tourism.
[A] 1, 2 and 3 only
[B] 1, 3 and 4 only
[C] 2, 3 and 4 only
[D] 1, 2 and 4 only
Q.320) The European Union was established in the year _
[A] 1947
[B] 1948
[C] 1951
[D] 1993
Q.321) Which nation is not a member of the South Asian Association for Regional Cooperation (SAARC)?
[A] India
[B] Maldives
[C] Pakistan
[D] Thailand
Q.322) The Association of Southeast Asian Nations (ASEAN) is a regional trade bloc whose
headquarters are based in
[A] Philippines
[B] Malaysia
[C] Thailand
[D] Indonesia
Q.323) Which nation is not a member of the Organisation of Petroleum Exporting Countries (OPEC)?
[A] Kuwait
[B] Saudi Arabia
[C] UAE
[D] Qatar
Q.324) Which nation is not a member of the Group of Seven (G-7)?
[A] Canada
[B] France
[C] Germany
[D] China
Q.325) The Group of Twenty (G-20) countries contribute to________ per cent of Global GDP?
[A] 70 per cent
[B] 75 per cent
[C] 80 per cent
[D] 85 per cent
Q.326) Which among the following statement is correct with respect to the Organization for
Economic Co- operation and Development (OECD)?
[A] The Organization for Economic Co-operation and Development (OECD) is an

intergovernmental economic organisation.
[B] It roughly consists of 36 member nations
[C] It was founded in 1961
[D] India is not a member of OECD.
Q.327) The Indian Ocean Rim Association for Regional Cooperation (IORARC) consists of
member states
[A] 15
[B] 10
[C] 22
[D] 44
Q.328) Which among the following country is not a founding member of BIMSTEC found in 1997?
[A] Bangladesh
[B] India
[C] Sri Lanka

[D] Nepal
Q.329) To limit global warming to 1.5°C, scientists recommend that by 2030, global emissions
should be cut by compared to 2010 levels.
[A] 45 per cent
[B] 25 per cent
[C] 5 per cent
[D] 10 per cent
Q.330) Which among the following statement is not correct with respect to climate change?
[A] Long-term changes in temperature and weather patterns are referred to as climate change.
[B] The cause of climate change can be natural or human activities
[C] Climate change threatens economic growth
[D] Human activities since the 1600s is the cause of climate change
Q.331) Which among the following Sustainable Development Goal relates to Climate Action?
[A] Sustainable Development Goal 1
[B] Sustainable Development Goal 7
[C] Sustainable Development Goal 12
[D] Sustainable Development Goal 13
Q.332) The total number of targets that the Sustainable Development Goals envisage are _
[A] 15
[B] 70
[C] 89
[D] 169

Q.333) The Sustainable Development Goals were proposed in the year _
[A] 2002
[B] 2005
[C] 2007
[D] 2012
Q.334) The Sustainable Development Goals have a time frame of _
[A] 2000-2015
[B] 2007-2015
[C] 2010-2030
[D] 2016-2030
Q.335) Which among the following is the Sustainable Development Goal on 'Zero Hunger'?
[A] Sustainable Development Goal 2
[B] Sustainable Development Goal 1
[C] Sustainable Development Goal 3
[D] Sustainable Development Goal 12
Q.336) Which among the following is/are the primary goals of the United Nations?
1. Maintaining peace
2. Safeguarding human rights
3. Building a framework for international justice
4. Combating challenges like AIDS
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only

[C] 1, 3 and 4 only
[D] 1, 2, 3 and 4
Q.337) Which of the following Indian States lead the SDG India Index 2021?
[A] Himachal Pradesh
[B] Kerala
[C] Karnataka
[D] Gujarat
Q.338) The SDG India index is prepared by which among the following?
[A] Union Finance Ministry
[B] United Nations Development Programme
[C] NITI Aayog
[D] Union Ministry of Statistics and Programme Implementation
Q.339) The task of coordinating the SDGs in India has been entrusted to _
[A] NITI Aayog
[B] Observer Research Foundation
[C] Union Finance Ministry
[D] Institute of Peace and Conflict Studies
Q.340) India aims to achieve the target of net zero emissions by which year?
[A] 2030
[B] 2040
[C] 2050
[D] 2070

Q.341) India aims to achieve the target of 500 Giga Watt non-fossil energy capacity by _
[A] 2030
[B] 2040
[C] 2050
[D] 2060
Q.342) Which among the following statement(s) is/are correct with respect to 'Panchamrit'
commitments to combat climate change?
1. Fulfilling 45 per cent of its energy requirements from renewable energy sources, by 2030
2. India will reduce the total projected carbon emissions by one billion tonnes from now onwards, till
2030
3. By 2030, India will reduce the carbon intensity of its economy, by less than 45 per cent
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.343) India announced the 'One Sun, One World, One Grid' (OSOWOG)' initiative in the _
[A] CoP 23 of UNFCCC
[B] CoP 24 of UNFCCC
[C] CoP 25 of UNFCCC
[D] CoP 26 of UNFCCC
Q.344) India launched the 'Plastic Hackathon 2021' campaign to ensure that the country is free of single-
use plastic by _________.
[A] 2022
[B] 2023

[C] 2025
[D] 2027
Q.345) As per the World Bank estimates, climate change is likely to lower India's GDP by ____________
by 2050.
[A] 6.8 per cent
[B] 2.8 per cent
[C] 9.8 per cent
[D] 7.8 per cent
Q.346) Which among the following is/are the strategies which can help in enhancing Green
Financing adopted by the Financial Services Taskforce (FSTF) of Sustainable Markets Initiative?
1. Benchmarking the definition of sustainable financing for further investments
2. Undertaking scenario analysis
3. Assessing the risks and opportunities in sustainable financing mechanisms
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.347) Green finance refers to the financial arrangements that are specific to the use for which
among the following projects?
[A] Production of energy from renewable sources
[B] Clean transportation that involves lower greenhouse gas emission
[C] Energy efficient projects like green building
Q.348) The National Action Plan on Climate Change (NAPCC) was launched in the year _________.

[A] 2002
[B] 2004
[C] 2005
[D] 2008
Q.349) The Security and Exchange Board of India (SEBI) made it mandatory for top listed entities
based on market capitalization at BSE and NSE to publish annual business responsibility reports
since 2012.
[A] 20
[B] 10
[C] 50
[D] 100
Q.350) India aims to reduce greenhouse gas emission intensity by below 2005 levels
as per its commitments under the 2015 Paris Agreement.
[A] 33 to 35 per cent
[B] 20 to 30 per cent
[C] 43 to 45 per cent
[D] 53 to 55 per cent
Q.351) Which among the following statement(s) is/are correct with respect to the
initiatives taken by the Indian Government to promote solar energy generation?
1. The Government of India (Gol) offers 30 per cent of the installation cost of the rooftop
solar panels as subsidy.
2. In some of the special category states, the subsidy is up to 70 per cent of the installation cost.
3. The excess power can be sold at a tariff set by the government.

[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.352) The FAME scheme aims at _____________.
[A] Supporting manufacturing of high efficiency modules in the arena of renewable energy
[B] Reducing the up-front purchase price of electric vehicles
[C] Increasing transmission of Monetary Policy.
[D] Capital infusion into Scheduled Commercial Banks
Q.353) Under the Priority Sector Lending (PSL) Scheme of the Reserve Bank of India for promoting green
finance, firms in renewable energy sector are eligible for loans upto _
[A] 5 Crore
[B] 10 Crore
[C] 15 Crore
[D] 30 Crore
Q.354) Green bonds constituted __________ of all the bonds issued in India since 2018.
[A] 0.5 per cent
[B] 0.7 per cent
[C] 2.7 per cent
[D] 3.9 per cent
Q.355) Which Section of the Companies Act 2013 provides legal support for CSR in India?
[A] Section 135

[B] Section 235
[C] Section 295
[D] Section 195
Q.356) Which Schedule of the Companies Act 2013 provides overall support to CSR in India
[A] Schedule I
[B] Schedule II
[C] Schedule IV
[D] Schedule VII
Q.357) Which among the following statement is incorrect with respect to the provisions of the
Companies Act 2013 with respect to Corporate Social Responsibility (CSR) activities?
[A] Section 135 of the Companies Act 2013 provides legal support for CSR in India.
[B] Schedule VII provides the overall direction for CSR efforts.
[C] In India, the maximum ceiling of amount mandated to be spent on CSR activities every 3
years is 2% of their net profits in a year
[D] Non-compliance with CSR provisions is a civil offence in India
Q.358) As per the IMF's World Economic Outlook (WEO) April 2022, name the world's fastest-
growing major economy in the foreseeable future.
[A] India
[B] China
[C] Japan
[D] USA
Q.359) According to the IMF's World Economic Outlook (WEO) April 2022, the Indian economy
would grow by in the fiscal year 2022-23.
[A] 6.7 per cent

[B] 7.1 per cent
[C] 8.9 per cent
[D] 1O per cent
Q.360) As per Planning Commission estimates (2011-12), the percentage of population below poverty line
in rural areas is ______________.
[A] 13.7%
[B] 20.7%
[C] 25.7%
[D] 27.7%
Q.361) As per Planning Commission estimates (2011-12), the percentage of population below poverty line
in urban areas is ________.
[A] 10.5%
[B] 13.7%
[C] 11.9%
[D] 25.7%
Q.362) Which among the following statement(s) is/are not correct with respect to the term 'Jobless
growth'?
[A] It is an economic phenomenon in which the economy grows while maintaining its employment level.
[B] It is an economic phenomenon in which the economy grows while lowering its employment level.
[C] It can be caused because of stringent labour laws.
[D] The labour-intensive industrial sector drives majority of economic growth in India.
Q.363) According to the Census 2011, the labour force growth rate in India was _________

[A] 1.4 per cent
[B] 1.8 per cent
[C] 2.23 per cent
[D] 7 per cent
Q.364) As per the World Inequality Report (2022), top 10 percent of the Indians earn __ of the national
income.
[A] 27%
[B] 37%
[C] 47%
[D] 57%
Q.365) According to Oxfam lnternational's report in 2022, the top 10 per cent of the Indian population
controls of the entire national wealth.
[A] 27%
[B] 37%
[C] 47%
[D] 77%
Q.366) Which among the following is a method to reduce inequalities in India?

1. Government spending on healthcare, education, and social welfare.
2. Government investing in free and high-quality public services.
3. Government investing more in R&D and innovation.
4. Taxing the rich more heavily

[A] 1, 2 and 3 only
[B] 2, 3 and 4 only

[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.367) Which among the following is/are not the negative effects of migration into a region?
[A] Impact on the landscape at the migrant's destination owing to over-exploitation of resources.
[B] Accelerated environmental degradation.
[C] Detrimental effect on soil and water conservation.
Q.368) Which among the following is/are the economic issues of India?
1. Weak demand.
2. Jobless economic growth.
3. Chronic unemployment and under-employment.
4. Burgeoning disparities in wealth distribution.
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only
[D] 1, 2, 3 and 4
Q.369) Which among the following statement(s) is/are correct with respect to the term 'Economics'?
1. Economics is concerned with the production, consumption, and distribution of goods and services.
2. It is the study of how resources can best be distributed to meet the needs of the greatest
number of people.
3. The term 'economy' is derived from the Latin word 'oikonomia'.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 2 and 3 only
Q.370) The term 'economy' is derived from the word 'oikonomia' which means _
[A] Production of resources
[B] Consumption of resources
[C] Distribution of resources
[D] Household management
Q.371) Which among the following statement is not correct?
[A] Economics is the science which studies human behaviour.
[B] Economics is the science which studies a relationship between ends and scarce means
[C] Economics involves the study of choices, as they are affected by incentives and resources.
Q.372) Who is considered as the founder of the field of Modern Economics?
[A] Lionel Robbins
[B] Amartya Sen
[C] Adam Smith
[D] Maynard Keynes
Q.373) Adam Smith defined Economics as a
[A] Study of welfare
[B] Study of 'means' and 'ends'
[C] Study of wealth
[D] Study of production

Q.374) The book 'An Enquiry into the Nature and Causes of the Wealth of Nations (1776)' is written by
[A] Loinel Robbins
[B] Amartya Sen
[C] Prof. Alfred Marshall
[D] Adam Smith
Q.375) The Welfare definition of Economics was given by
[A] Lionel Robbins
[B] Amartya Sen
[C] Adam Smith
[D] Prof. Alfred Marshall
Q.376) Marshall's Principles of Economics were given in the year _
[A] 1776
[B] 1890
[C] 1905
[D] 1911
Q.377) Who among the following has given the definition of Economics as a 'Study of 'means' and 'ends'?
[A] Lionel Robbins
[B] Adam Smith
[D] John Maynard Keynes

Q.378) As per, Lionel Robbins' definition of Economics, 'Ends' refer to _
[A] Demand
[B] Resources
[C] Utility
[D] Wants
Q.379) Which among the following statement is not correct with respect to Lionel Robbins'
Definition of Economics?
[A] This definition presents Economics as a study of 'means' and 'ends'.
[B] The definition describes that wants of human beings are unlimited.
[C] As per the definition, the means to satisfy human wants are limited.
[D] As per the definition, resources do not have alternative uses.
Q.380) Microeconomics is concerned with the behaviour of _
[A] Gross Domestic Product
[B] Individual entities
[C] Economy as a whole
[D] Unemployment rates
Q.381) Which among the following statement(s) is/are correct with respect to 'Microeconomics'?
1. It is the branch of economics which is concerned with the behaviour of individual

entities such as markets, firms and households.
2. Microeconomies analyses the market behaviour of individual consumers and firms.
3. It studies how households and firms make decisions to allocate limited resources.
[A] 1 only

[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.382) Who among the following is known as the founding father of Macroeconomics?
[A] Loinel Robbins
[B] Adam Smith
[D] John Maynard Keynes
Q.383) Macroeconomics deals with _______________.
[A] Gross Domestic Product
[B] Unemployment Rates
[C] Price indices
[D] AlI of the above
Q.384) Macroeconomics develop models that explain the relationship amongst which of the following?
1. National income
2. Unemployment
3. Inflation
4. Savings
[A] 1, 2 and 3 only
[B] 2, 3 and 4 only
[C] 1, 2 and 4 only

[D] 1, 2, 3 and 4
Q.385) Market Economy is also known as
[A] Mixed Economy
[B] Capitalistic Economy
[C] Command Economy
[D] State Economy
Q.386) Which among the following is a Capitalistic Economy?
[A] United States of America
[B] China
[C] India
[D] Former USSR
Q.387) Laissez-faire economy is
[A] The extreme case of a Market Economy
[B] The extreme case of a Command Economy
[C] The extreme case of a State Economy
[D] The extreme case of a Mixed Economy
Q.388) A market economy is one

[A] In which individuals and private firms make the major decisions about production and consumption.
[B] In which the government makes all important decisions about production and distribution.
[C] In which the government owns and directs the operations of enterprises in most industries.

Q.389) A Command Economy is also called
[A] Capitalist Economy
[B] Socialistic Economy
[C] Laissez faire Economy
[D] Mixed Economy
Q.390) Which of the following is a Socialist Economy?
[A] England
[B] United States of America
[C] Former Soviet Union
[D] China
Q.391) A Command Economy is one
[A] In which individuals and private firms make the major decisions about production and consumption
[B] In which government makes all important decisions about production and distribution
[C] Firms produce the commodities that yield the highest profits
[D] Consumption is determined by individuals' decisions
Q.392) India is a
[A] Capitalistic Economy
[B] Socialistic Economy
[C] Mixed Economy
[D] Command Economy

1. No contemporary society or economy falls completely into either of the extreme categories of
Capitalistic or Command Economy.
2. The government plays an important role in overseeing the functioning of the market
in a Mixed Economy.
3. The government passes laws that regulate economic life, produce goods and services,
and control pollution in a Mixed Economy.
[A] 1 only
[B] 2 only
[C] 1 and 2 only
[D] 1, 2 and 3
Q.394) Which among the following statement is not correct with respect to the theory of
supply and demand?
[A] This theory shows how consumer preferences determine consumer demand for commodities
[B] This theory shows how business costs determine the supply of commodities.
[C] Changes in supply and demand drive changes in output and prices
Q.395) The Demand Schedule is the
[A] Relationship between demand and quantity bought
[B] Relationship between price and quantity bought
[C] Relationship between income and demand
[D] Relationship between income and quantity bought
Q.396) Consider the following data with respect to variation in quantity demanded of a
commodity based upon the price of the commodity. Answer the following three questions (No.
396, 397 and 398) based on the data given above:
Price Quantity demanded

(Rs. per box) (million of boxes per year)

A 500 (a)
B 400 (b)
C 300 (c)
D 200 (d)
E 100 (e)
If the quantities demanded are 10, 9, 12, 20 and 15 millions of boxes per year. How will the
blanks (a), (b), (c), (d) and (e) be filled considering the relationship between price change and
quantity demanded, as per the 'Law of Demand' and other things remaining constant?
[A] In a descending order
[B] In an ascending order
[C] First in ascending then in descending order
[D] First in descending then in ascending order
Q.397) If the quantities demanded are 10, 9, 12, 20 and 15 millions of boxes per year. What is the
quantity demanded if the price of the commodity is Rs. 500 per box?
[A] 10
[B] 12
[C] 9
[D] 20
Q.398) If the quantities demanded are 10, 9, 12, 20 and 15 millions of boxes per year. What
is the quantity demanded if the price of the commodity is Rs. 100 per box?
[A] 10
[B] 9
[C] 12
[D] 20

Q.399) Market demand curve obeys the
[A] Law of downward-sloping demand
[B] Law of upward-sloping demand
[C] Law of diminishing demand
[D] Law of neutral-sloping demand
Q.400) How does average income of consumers effect the demand curve?
[A] As people's income rises, individuals tend to buy more of almost everything, even if prices do not
change.
[B] As people's income rises, individuals tend to buy more of everything, only if the prices drop.
[C] As people's income rises, individuals tend to buy more of everything, only if the prices rise.
[D] As the price of commodities go up, people find themselves poorer and thus cut their consumption.
Answers
1.B 2.A 3.A 4.C 5.A 6.B 7.B 8. A 9. A 10. C 11. A 12. B
13. C 14. B 15. D 16. D 17. C 18. D 19. A 20. C 21. D 22. B 23. A 24. B
25. D 26.B 27.C 28.C 29.D 30.C 31.D 32.A 33.D 34.C 35.D 36.C
37. B 38.D 39.D 40.D 41.C 42.A 43.C 44.C 45.B 46.D 47.B 48.B
49.D 50.A 51.D 52.C 53.B 54.B 55.C 56.D 57.C 58.A 59.B 60.B
61.D 62.C 63.D 64.A 65.B 66.D 67.D 68.C 69.A 70.B 71.D 72.D
73.D 74.B 75.B 76.D 77.C 78.A 79.D 80.B 81.C 82.D 83.D 84.C
85.C 86.C 87.D 88.C 89.C 90.B 91.D 92.D 93.B 94.D 95.D 96.D
97.D 98.C 99.B 100.D 101.C 102.D 103.B 104.D 105.A 106.C 107.D 108.D
109.D 110.D 111.A 112.C 113.D 114.D 115.D 116.D 117.D 118.D 119.A 120.D
121.B 122.D 123.C 124.B 125.B 126.C 127.C 128.A 129.B 130.B 131.D 132.B
133. D 134.C 135.D 136.D 137.D 138.D 139.D 140.C 141.C 142.D 143.D 144.C
145.A 146.D 147.D 148.C 149.D 150.D 151.D 152.D 153.A 154.D 155.D 156.D
157.D 158.C 159.D 160.C 161.B 162.C 163.B 164.D 165.D 166.D 167.D 168.C
169.D 170.A 171.B 172.D 173.D 174.D 175.C 176.A 177.B 178.D 179.B 180.C
181.D 182.A 183.D 184.D 185.A 186.C 187.C 188.C 189.D 190.D 191.D 192.D
193.D 194.A 195.B 196.D 197.D 198.A 199.D 200.D 201.D 202.D 203.C 204.A
205.C 206.C 207.D 208.D 209.D 210.D 211.C 212.C 213.C 214.D 215.C 216.B
217.C 218.D 219.D 220.D 221.A 222.D 223.C 224.C 225.B 226.C 227.A 228.D
229.A 230.D 231.A 232.D 233.D 234.D 235.D 236.C 237.D 238.D 239.D 240.D
241.B 242.A 243.C 244.D 245.A 246.A 247.D 248.D 249.D 250.D 251.B 252.D
253. C 254.D 255.D 256.C 257.B 258.D 259.D 260.B 261.D 262.D 263.A 264.D
265.A 266.D 267.B 268.A 269.A 270.D 271.D 272.B 273.B 274.D 275.D 276.C
277.D 278.D 279.B 280.A 281.C 282.D 283.D 284.C 285.D 286.D 287.B 288.D
289.A 290.A 291.D 292.D 293.D 294.D 295.D 296.C 297.D 298.D 299.D 300.D
301.B 302.B 303.D 304.D 305.D 306.B 307.D 308.D 309.C 310.B 311.A 312.D
313.B 314.A 315.D 316.D 317.D 318.D 319.A 320.D 321.D 322.D 323.D 324.D
325.A 326.D 327.C 328.D 329.A 330.D 331.D 332.D 333.D 334.D 335.A 336.D
337.B 338.B 339.A 340.D 341.A 342.D 343.D 344.A 345.B 346.D 347.D 348.D
349.D 350.A 351.D 352.B 353.D 354.A 355.A 356.D 357.C 358.A 359.C 360.C
361.B 362.D 363.C 364.D 365.D 366.D 367.D 368.D 369.C 370.D 371.D 372.C
373.C 374.D 375.D 376.B 377.A 378.D 379.D 380.B 381.D 382.D 383.D 384.D
385.B 386.A 387.A 388.A 389.B 390.C 391.B 392.C 393.D 394.D 395.B 396.B
397.C 398.D 399.A 400.A

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Q110. What is the accounting entry when the creditor

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Q147. The book ‘An Introduction to Indian Government

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Q183. A Which of the following statement will be

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Q191. Which of the following systems is incorrect?

Q188. Fair Value Accounting is also known as

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Q230. All money received along with application for

Q231. Which one of the following is not classified under

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Q239. Which one of the following is a use of funds?

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Q288. Which one of the following is a method of

Q294. Which one of the following statements is

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Q303. Which among the following statements is

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Q305. Which of the following given statement is/are

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Q331. A ___________ is a bank that operates without

Q333. The two basic measures of liquidity are:

Q353. Which of the following statements is/are

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Q359. Which of the following is not an advantage of

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