Finance
Objective: 1 Mark
1.The Reserve Bank of India offers temporary financial assistance to the Central and State
Governments. What is the name of this financial instrument?
(a) Overdraft
(b) Loan
(c) Short term finance
(d) Ways and Means advance
(e) None of the above
Explanation: The RBI has given the Government of India a short-term loan termed as the WMA
to assist it with short-term liquidity problems. It limits for the second half of FY 2022–23 has
been set by the Reserve Bank of India at INR 1, 50,000 crores.
2. The company that keeps track of borrowers' histories in India is ________, which is also
India's oldest provider of credit information.
(a) SEBI
(b) CIBIL
(c) CARE
(d) RBI
(e) CRISIL
Explanation: With a market share of more than 60%, CRISIL is India's biggest credit rating
company.
A 12-digit code serves as the verification code.
3. RBI will charge commercial banks a …… yearly penalty over the bank rate if they cease to
keep up with the SLR.
A) 3.5%
B). 2.5%.
C). 3%
D). 2%
Explanation: Every bank must maintain the SLR in accordance with RBI regulations. If any
commercial bank violates the SLR, the RBI will impose a 3% annual charge above the bank
rate. A 5% penalty will be assessed if you default the following working day as well.
4. What does the term ISO 9362 signify in regard to banking?
(a) RTGS
(b) NEFT
(c) SWIFT
(d) All of them
Explanation: The Business Identifier Code (BIC), a universal identifier code for both financial
and non-financial institutions, is defined by ISO 9362. Other names for BIC are SWIFT-BIC,
SWIFT ID, and SWIFT code.
5. Which of the following individuals represents the Government of India with regard to her
IMF membership?
a) RBI
b) Ministry of finance
c) NABARD
d) SEBI
Explanation: In addition to the reserves, it has deposited with the IMF, India's foreign exchange
reserves also include gold and special drawing rights (SDR) that have been given to it by the
organization. The RBI is in charge of holding and managing foreign exchange reserves only
interacts with foreign currencies that are IMF members.
2 Mark Questions & Answers
Paragraph 1: Risk involved with buying supplies in dollars from an importing company and
then selling the finished product for local currency. Devaluation could cause losses for the
company, preventing it from meeting its financial obligations.
1. In this passage, which type of risk mentioned here
a) Credit
b) Market
c) Liquidity
d) Operational
Explanation: Economic uncertainties are a major contributor to market risk. These risk
sources include changes in the prices of assets, liabilities, and derivatives.
2. Which of the following best suits for the market risk?
a) Investment
b) Health
c) Infrastructure
d) Commercial
Explanation: The commercial sector is one such. Revenue has increased for businesses who
have successfully adapted to the digital market to offer their products online.
3. Depreciation increases import
a) Dearer
b) Rarer
c) Cheaper
d) Nearer
Explanation: Devaluation increases the cost of imports and discourages them, but cheaper
exports encourage trading partners to purchase more products from the devalued country.
Devaluation is advantageous for countries that produce industrial commodities on a big scale.
Paragraph 2: For buyers and sellers to exchange financial assets including bonds, shares,
derivatives, commodities, and currencies, financial markets and services provide a platform.
They serve as a reflection of the market's supply and demand dynamics, have an impact on
economic development, aid in securing foreign money, enhance the effectiveness of financial
operations, and stabilize the prices of various assets.
1. Who will issue debts instruments?
a) NBFC
b) Private
c) Industries
d) Insurance companies
Explanation: The following organisations are permitted to issue debt instruments by the
Reserve Bank of India:
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Central and State Governments
Municipal Corporations
Government agencies
Banks
NBFCs
Public Sector Units
Corporates
2. Which contracts prohibit the buyer and seller from meeting in person and concluding
a deal.
a) Forward
b) Swap
c) Future
d) Options
Explanation: The buyer and seller cannot meet in person to negotiate a future
contract. The deal is actually finalised through exchange method.
Management
Objective : 1 Mark
1. A....... is a type of nonverbal or non vocal communication in which a specific message is
conveyed through observable bodily actions.
a) Aesthetic
b) Gesture
c) Posture
d) Paralanguage
Explanation: Gestures used to convey ideas include head nodding, eye rolling, mouth
smacking, and other movements.
2. Based on these two characteristics (concern for output and concern for people) present in
organizations, the managerial grid defines five leadership philosophies.
a)
b)
c)
d)
hierarchical grid
modular grid
managerial grid
gutters grid
Explanation: The Leadership Grid, formerly known as the Managerial Grid, is based on
two behavioral dimensions: concern for production, which is plotted along the X-axis
on a scale from one to nine points, and care for people, which is represented along the
Y-axis on a similar scale.
3. Which management style gives employees total freedom?
a)
b)
c)
d)
Autocratic
Democratic
Participative
Free Rein
Explanation: The entire process is left to the subordinates in this management style
after the manager has decided on the rules, programs, and restrictions for action. All
tasks are carried out by group members, and the manager typically keeps in touch with
people outside the group to bring in the information and supplies the group requires.
4. Prior to surgery, a patient would have diagnostic procedures, have a treatment done in
surgery, and then receive postoperative care in which type of department by…….
a) Customer
b) Function
c) Process
d) Numbers
Explanation: Departmentalization by process divides work into divisions according to the flow
of a product or a customer. Each method provides a foundation for uniformly classifying labor
tasks and calls for specific talents. Each of these services is run by a distinct department.
5. An employee is evaluated by his supervisor, peers, subordinates, and clients with whom he
interacts while performing his job under which feedback appraisal system.
a) Grading
b) 360 degree
c) Ranking
d) MBO
Explanation: In a 360-degree appraisal, an employee's supervisors, subordinates, peers, and
even customers and clients are surveyed about their performance, including their skills,
abilities, and behaviours.
2 Mark Questions & Answers
Paragraph 1: Jane will be more likely to feel emotionally at ease and less under strain if
she meets with her boss and is told that she is on target with her work. This is because she
will have received a vote of confidence from management.
1. In The context of the passage, Which of the following reflects the passage?
a) Motivation
b) Morale
c) Job Satisfaction
d) Self Confidence
Explanation: An individual's or group's general attitude towards all parts of their work, such
as the organisation, the job, the supervisors, their coworkers, the working environment, etc.,
is referred to as morale.
2. In this passage, Which types of Morale is defined?
a) Employer Morale
b) Company Morale
c) Employee Morale
d) Self Morale
Explanation: Employee morale is a term used to describe how employees feel about
themselves and their work environment. Those who are content and have a good attitude at
work
Paragraph 2: For instance, some workers perform better when their manager has a more
dictatorial and directive style. Others will have a better chance of success if the leader can
take a back seat and rely on his team to make decisions and carry out plans without direct
supervision. On a related point, Different business environments and industry types call for
different sets of skills and leadership qualities. While innovation is highly valued in some
industries, personal charisma and a strong client relationship are far more crucial in others.
1. In this instance, which type of theory defined?
a) Trait Theory
b) Situational theory
c) Contingency theory
d) Both b & c
Explanation: The foundation of situational theories of leadership is the idea that the
best leadership approach varies depending on the circumstance. A leader needs to be
flexible in order to be most effective and successful in many situations.
2. In which two factors this theory was based on?
a) Leadership Style
b) Maturity
c) Both a & c
d) Behaviour
Explanation: The leadership style of the leader and the maturity or readiness of the followers
should be suitably matched, according to this leadership philosophy.
3. Maturity Level M2 defines which type of style.
a) Telling
b) Participating
c) Delegating
d) Selling
Explanation: 1. Telling style is most effective when managing staff members at the M1 level
(low competence, poor commitment).
2. Leading personnel at the M2 level (low competence, great dedication) benefit most from
the selling technique.
3. Participating approach is most effective for managing staff members at the M3 level (high
competence, low commitment/confidence).
4. M4 employees (high competence, strong commitment/confidence) respond best to
delegation style.
Descriptive
Part A. Answer any 2 questions out of the following:
1. Define about
a) SEBI
 The purpose of SEBI (Security Exchange Board of India) was to encourage the
growth and regulation of the securities market as well as to safeguard the interests
of investors in securities.
 It regulates stock exchanges and issues financial institutions licenses.
 Assess penalties for wrongdoing and rule-breaking against the middlemen.
b) PACS
 The grassroots components of the short-term cooperative lending structure are the
Primary Agricultural lending Societies.
 Rural (agricultural) debtors are dealt with directly by PACs, who also disburse loans
and collect repayments. and perform marketing and distribution tasks as well.
 PACS encourage farmers to save money, which can be used to improve their
livelihoods and invest in their farms.
c) Priority Lending Sector:
 Small-value loans to farmers for agricultural and related operations, microloans to
small businesses, housing assistance for the poor, education loans for students, and
other low-income groups and weaker sections are all considered priority sectors.
 Regional Rural Banks (RRB) and Small Finance Banks (SFB) are exempt from PSL
because they already operate in the sector covered by PSL rules.
d) NPA
 It refers to a loan or advance where the principal or interest payment was past due
for 90 days.
 As a result, NPA somehow fails to generate revenue for the lender in the form of
principle or interest payments. NPA is another name for "bad debts" or "bad loans."
e) Banking Ombudsman
 It provides bank clients with a quick and affordable forum for the settlement of
grievances regarding specific services provided by banks.
 The submission and resolution of customer complaints are free of charge for the
Banking Ombudsman.
 The Banking Ombudsman Scheme, 2006 covers/includes all Scheduled Commercial
Banks, Regional Rural Banks, and Scheduled Primary Co-operative Banks.
2. What is NPCI? List the services of NPCI and Explain it.
NPCI:
In India, the operation of retail payments is governed by the National Payments
Corporation of India (NPCI). The Reserve Bank of India and the Indian Bank's Association
founded this organization. The Reserve Bank of India centrally encouraged the
incorporation of NPCI in December 2008. In April 2009, the Certificate of Business
Initiation was released.
Services:
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NFS, or the National Financial Switch, is a mechanism that enables access to banking
systems from any ATM, regardless of the bank.
AePS, also known as the Aadhar Enabled Payments System, aids in bringing payment
systems to underserved areas.
The Aadhar Bridge Payments System (ABPS) enables state and federal government
entities to transfer benefits of various subsidies and programs directly to beneficiaries.
National Automated Clearing House is known as NACH. Paperless collecting method
for both account-based and Aadhaar-based transactions is facilitated by an offline
system.
Real-time payments in the retail industry are made through IMPS, or Immediate
Payment Service.
Bharat Bill Payment System (BBPS) is a one-stop shop for paying bills with access to
more than 200 merchants. In addition to others, categories include telecom services,
DTH, loan repayment, insurance, FASTag, cable, and utilities like electricity, gas, and
water.
The National Electronic Toll Commission (NETC) offers electronic payment options
using FASTags at state and local toll booths.
RuPay: RuPay is a domestic card programme in India that combines an EMV chip and
a magnetic stripe. In India, 300 cooperative banks and Regional Rural Banks (RRBs) can
issue this card, which can be used at practically all ATMs.
Unified Payments Interface (UPI): On April 11, 2016, the Unified Payments Interface
(UPI) technology for immediate interbank payments was introduced. This payment
method was created to give users of mobile devices a platform for quick money
transfers between two bank accounts.
3. Discuss about the five regulatory bodies in India.
Regulatory Body:
An entity created by the government to perform regulatory duties is known as a
regulatory body.
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RBI: The RBI is an independent regulatory organisation for the banking, capital
markets, insurance, commodities market, and pension funds within the Indian
financial system. The Banking Regulation Act, 1949 primarily governs how
banks and other financial organisations are regulated in India.
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SEBI : The Securities and Exchange Board of India (SEBI) is a statutory entity
wholly owned by the Indian government that was founded on April 12, 1992,
in accordance with the SEBI Act 1992. Protecting investors' interests and
regulating the securities market are SEBI's two main responsibilities.
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EPFO: The statutory provident fund, pension, and life insurance plans for all
Indian employees in the commercial and public sectors are administered by the
Employees' Provident Fund Organisation, or EPFO, which is a significant social
security authority.
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SIDBI: The MSME (Micro, Small, and Medium Enterprise) sector is promoted,
developed, and funded by the Small Industries Development Bank of India, a
major organisation created under a law passed by Parliament.
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FCI: The largest public-sector initiative in the nation, FCI works to guarantee
the country's food security. The headquarters of FCI are located in Delhi and
are divided into four sections: the Institute of Food Security (IFS), which is led
by an Executive Director, the Personnel Establishment (P.E. ), Policy & Industrial
Relations (P&IR), and Headquarters Section.
Part B. Answer any 2 questions out of the following:
1.In recent years, India has seen a significant rate of inflation. Examine the main causes of
inflation in the Indian economy and the success of the government's efforts to control it.
Answer:
An economic phenomena called inflation causes prices for products and services to gradually
rise overall over time. Consumer price inflation (CPI) in India has been strong recently, with
an average of over 6%. Even so, it exceeded 7.5% last year.
Major factors causing inflation in the Indian economy:
Russian-Ukrainian hostility: The global supply chain had been significantly damaged by the
disruption of two important trade routes—Russia and Ukraine—and by the sanctions placed
on Russia. As a result, oil prices skyrocketed to all-time highs, driving up inflation. India was
affected by the knock-on effects as well.
Higher Food Inflation: In India, the level of inflation has skyrocketed due to higher food
inflation, particularly in the cost of cereal crops like wheat and maize. In essence, other costs
increased as a result of higher food and gasoline prices.
Core Inflation: A study claims that by the end of 2022, the core inflation rate will have risen
from 6.1% to 6.2%. The change in prices of products and services other than food and fuel are
referred to as core inflation.
Increased input costs being passed on to customers by businesses: As a result, while inflation
in the services sector is slowing, core goods inflation has continued to increase year over year.
Government actions made to reduce inflation:
The RBI's monetary policy committee occasionally boosted the repo rates in accordance with
its hawkish attitude.
Decreased import duty on pulses: In order to make pulses more affordable in India, the
government has either totally eliminated or decreased the import duty on pulses to a single
digit amount.
In order to improve the production of pulses in India during the upcoming sowing season, the
government has also implemented measures to encourage farmers to cultivate pulses.
Making edible oil imports tax-free: In order to ensure an easy and enough supply of edible
oil, the import of edible oil has been rendered nearly tax-free for the last three years.
Reducing the excise duty on gas and diesel: In an effort to lower the cost of goods and
logistics, the government announced a reduction in the excise charge on petrol and diesel last
year.
Limiting sugar exports: Last year, the government put restrictions on sugar exports to
maintain a sufficient supply within the nation, prevent unforeseen sugar price increases, and
lessen reliance on crude oil by increasing ethanol production. October 2023 has been added
to this cap.
Ban on wheat exports: As part of attempts to rein in soaring local prices, the government
banned wheat exports from May 2022.
2.'POSDCORB': Describe the functions of management.
Planning: Planning is the process of foreseeing or projecting future activity in a particular way
or structure. It is the fundamental job function that is necessary for every organization.
Organising: It is the collecting or uniting of all resources, both inside and outside the
organization, in order to effectively accomplish the organizational aim.
Staffing: It entails choosing the ideal candidate for the position at the ideal time. The
management's responsibility is to evaluate each employee, determine whether he is qualified
for the position, and then assign the appropriate amount of work inside the company.
Directing: It provides which by specifying the proper course to take to accomplish the
organizational objective in the allotted amount of time.
Controlling: Controlling as a role involves monitoring the individual or assessing whether he
is acting appropriately or not. In order to accomplish the shared objective as effectively as
feasible.
Coordinating: A type of support function is coordination. It entails building up the work to
complete the task.
Budgeting: Allocation of resources is referred to as budgeting. For upcoming events, it involves
budgeting.
Reporting: It is a summary for the top management that details the numerous actions. It
displays the state of the completed task.
3.Compare between Maslow's and Herzberg's theories
The MASLOW theory Herzberg's theory
1. He separated the building's construction into five tiers.
2. Needs are emphasised
3. Hierarchies are observed
4. Money is an incentive
5. The theory is a descriptive one.
6. Applicable to all cadres of persons
Herzberg's theory
He separated the hypothesis into two factors: 1.
2. Satisfaction is prioritized
3. All demands come at once.
4. Pay is a component of the hygiene factor.
5. It is a theory with prescriptions.