Advance Bank Management Credit & HR

Q. 1 Higher, the Rate of Return _____________ will be Present Value (Higher/Lower)

Ans. Lower

Q. 2 Find out Effective Rate of Interest on a bond with Coupon rate 10% and Compounding is

Quarterly.

Ans. 10.38

Q. 3 A Gold ring worth Rs. 1.00 will have market value Rs. 1.50 lac after 2 years. Calculate the

Present Value of the amount receivable after two years assuming kd 10%

Ans. Formula is C1(Future Value /(1+ r)raise to power nos. of years

i.e. 150000/1.21 = 123966 Ans

Q. 4 RBI issues 6% bond of Rs. 100 with maturity period of 3 years. Rate of return in the market is

15%. Find PV of the bond?

Ans. 80.12

Q.5 A 10% bond of Face Value Rs. 100 is purchased at 113.62. Hence it gives 8.8% return. This

return is called_________ (Yield or Yield to Maturity).

Ans Yield

Q. 6 A 6% bond of Face Value of Rs. 1000 is purchased at 1010.77 and sold next year at 1020. The

rate of return will be ____________.

Ans 6.51%

Q.7 The bonds on which no interest is paid and on which the investors gain is only difference

between Purchase price and Face Value are called ____________bonds.

Ans Zero Coupon Bond

Q. 8 What is difference between Capital Cost and Cost of Capital?

Ans Capital cost is the amount paid on Assts whereas cost of capital is rate of return on particular

asset.

Q. 9 A property worth Rs. 4.00 lac fetches Rs. 5.00 lac after 1 year. The Rate of return in the market

is 9%. Calculate NPV

Ans. C1/1+r i.e. 500000/1.09 i.e. 458715.59 Deduct Rs. 400000 and get answer Rs.

58715.

Q. 10 How much should I invest annually to accumulate Rs. 20.00 lac in 10 years if interest rate is

12%

Ans. Rs. 114285/- ( Future Value Formula C*(1+.12) raise to power 10) 1 / r

Q. 11 Your Father deposited Rs. 10.00 lac on his retirement in a bank, which pays 10% interest. What

can he withdraw annually for a period of 10 years.

Ans. 162730/- ( Present Value Formula)

Q. 12 What is Perpetuity?

Ans. Constant Cash flows paid or received at regular intervals for ever.

Q. 13 Explain the formulae of Perpetuity.

Ans. PV of Perpetuity = A/R (where A=annuity and R=Market Rate.

Q. 14 A bond having Face Value Rs. 1000, Coupon Rate 6% and Market Rate of Return is 9%.

Calculate Present Value of the Bond?

Ans A/R i.e. 60/.09 i.e. 667/-.

Q. 14 Present Value of Rs. 2000 received at the end of 3rd year at 8% interest rate is equal to

Ans. PV=C1/(i+r)raise to power n i.e. 2000/1.2597 i.e. 1588/-

Q. 15 What is formula for calculating Rate of Return?

Ans. Coupon Income + Price change / Investment

Q. 16 6% 1000 FV bond is purchase for 1010.77. Coupon payment of Rs. 60/- is received during the

year. The Real worth of Bond is 1037.72. Calculate Rate of Return.

Ans. 60+26.95/1010.77 = .860 i.e. 8.6%

Q. 17 If Rate of Interest is 12%, it takes ____years to double the amount as per Rule 72.

Ans. 6 years

Q. 18 The terms used to describe a Sample e.g. mean(x), median, size(n) and Standard Deviation (s)

are called Sample Statistics or Parameters.

Ans. Statistics

Q. 19 Parameters describe ___________ (Sample/Population)

Ans. Population

Q. 20 If each group has small variation within itself, it is called _________type of Sampling.

(Stratified or Cluster)

Ans. Stratified

Q. 21 If each group has considerable variation within itself, it is called _________type of Sampling.

(Stratified or Cluster)

Ans. Cluster

Q. 22 Probability distribution of all possible means of Sample drawn from Population is called

___________ (Standard Error or Sampling distribution)

Sampling Distribution

Q. 23 Standard Deviation of distribution of Sample Means is called______________________

(Standard Error or Sampling distribution)

Standard Error

Q. 24 What is formula of Standard Error?

Standard Deviation of Mean i.e SD of Population/ n

Q. 25 In a sample of 16 observations from a normal distribution having mean of 150 and variance of

256, calculate Standard Deviation.

Ans. Standard Deviation = Square root of variance i.e. 16.

Q. 26 In the above example calculate Probability that sample mean will be less than 160 or

Solve P(Mean X < 160)

Standard Error = 16/16 = 4 z = x-/ standard error = 160-150/4 i.e. 10/4 i.e.2.5

from probability table, we get .4983 Add .5000 and get .9983 99.88% Ans

Q. 27 Solve P(Mean X >142)

Value of z = 142-150/4 =8/4 =2 probability table gives value .4772

Add .5000 in .4772 and get .9772 i.e. 97.72% Ans

Q. 28 In a sample of 19 observations, with mean 18 and sd 4.8, what is P(16

Ans. Value of Y will be taken 5 i.e. between 57.77 and 67.77

Q. 41 In normal distribution (Central limit theory) of Sample mean, 99% confidence level conveys :

1st.error, 2 st.error, 2.58 st.error

Ans. 2.58 st.error

Q. 42 In Time Series, steady and long term growth shown on the graph is called _________Trend.

(Secular/Seasonal/Cyclical)

Ans. Secular

Q. 43 Pattern of changes within a year shown on the graph are called ___________variations.

(Secular/Seasonal/Cyclical)

Ans. Seasonal

Q. 44 Peaks and slumps in the business over a period of time shown on the graph is called

__________.(Secular/Seasonal/Cyclical)

Ans. Cyclical

Q. 45 Bu using Coded time, what is the equation of slope i.e. b

Ans. B= xy/x sq

Q. 46 Also write the equation of Y intercept i.e. a

Ans. A= Y mean

Q. 47 You estimate to score 60-65 marks in CAIIB. Which type of estimate is it?

Ans. Interval Estimate

Q. 48 Sample mean is ____________of (Parameter/Estimator)

Ans. Estimator

Q. 49 Light Bulbs are produced in a factory and have mean life of 540 hours and Standard Deviation is

50 hours. Find fraction of bulbs that have life less than 500 hours.

Ans. Z=(500-540)/50 = -40/50 = -.8 = .2881(Probability from table)

Deduct .2881 from .5 We get .2119 (Ans.)

Q. 50 Fraction of bulbs having life span between 500 & 600 hours

Ans. Z=(600-540)/50 = 60/50 = 1.2 (Probability from table)

.6730 (.2881 +.2119)

Q. 51 Mean and sd of marks in a class are 55 and 8 respectively. Within what interval at-least 90%

marks lie.

Ans. Use formula X mean Standard Errorx.6(sd) *x mean Ans. Between 42 & 68

Q. 52 Under Linear programming, the effects of changes in various constraints on the optimal

solutions studied. What is it called?

Ans. Sensitivity Analysis

Q. 53 The solution satisfies all constraints and maximizes profit. It is called _________solution.

Ans. Optimal Solution

Q. 54 Statisticians use Normal distribution as an approximation to sampling distribution whenever the

sample size is at least__________.

Ans. 30

Q. 55 With regard to HRM, Frederick Taylor gave concept of

1) Division of Labour

2) Time and Motion Study

3) Both 1 & 2

4) None

Ans. Both 1 & 2

Q. 56 The tasks can be broken into simple and easy to understand. People do work in return of

money. This concept was given by

Ans. Gantt and Gilberth

Q. 57 Sense of Belongingness and Sense of Proud are important dimentions of Human behavior as

per ______________Study.

Ans. Hawthorne

Q. 58 NILM (National Institute of Labour Management) was merged with _________________in the

year 1982.

Ans. NIPM (National Institute of Personnel Management.

Q. 59 Name the legislation for settling disputes of workers.

Ans. Industrial Dispute Act, 1947

Q. 60 Learning is enhanced when learner is motivated. It requires feedback. It increases performance

which is transferable to job. This idea was given by

Ans. Decenzo and Robbins

Q. 61 There are 5 life stages i.e. Adolescence, Young Adulthood, Adult hood and Maturity. These have

been explained by ___________ (writer)

Ans. Erik Erikson

Q. 62 Apprentice, Colleague, Mentors and Sponsors are four Career ______________given by Dalton,

Thompson and Price. (Roles/Patterns/Anchors)

Ans. Career Roles

Q. 63 Linear Career ,Steady Career and Spiral Career are Career __________

(Roles/Patterns/Anchors)

Ans. Career Patterns

Q. 64 Why an individual follows a particular Pattern depends upon his Competence, Security,

Creativity and autonomy. These are called Career______________ (Roles/Patterns/Anchors)

Ans. Career Anchors

Q. 65 Eric Berne has given 3 Ego states. Name these.

Ans. Parent, Adult and Child

Q. 66 Harris gave idea of 3 Life Positions. If a person considers that he has no value but the other

party has Value. What is it ?

Ans. I am not OK, You are OK

Q. 67 Creativity, Curiosity and Reaction are the signs of Which Ego State. (Parent/Child/Adult)

Ans. Child

Q. 68 Known to Self and Known to Others is which type of Personality as per SWOT Analyses

Ans. ARENA

Q. 69 SWOT Analysis is relevant to refer to the concept of ___________Window given by Luft and

Ingham.

Ans. Johari

Q. 70 Friedman, Mayer and Ray classified human personality into two types:

Type A and Type B. The persons who are restless, Impatient, Multi-tasker and desiring quick

achievement are which type of Persons.

Ans. Type A

Q. 71 Finding immediate pleasure from Internal environment or Biological pleasure is called

__________(id/ego superego)

Ans. Id

Q. 72 __________controls it so that pleasures are granted at appropriate time and in acceptable

manner. (id/ego/ superego)

Ans. Ego

Q. 73 ____________is the restraining force which supports ego which is also called conscience.

(id/ego/superego)

Ans Super ego

Q. 74 Left Hemisphere controls ______side of the body.

Ans. Right

Q. 75 Speech, Logic, Reading and Writing are controlled by _____________Hemisphere.

Ans. Left

Q. 76 Simulations, Emotions, Creativity are controlled by ________________Hemisphere

Ans. Right

Q. 77 Payment to workers on Differential Piece Rate basis is the rationale of Scientific Management

mooted by ________________.

Ans. FW Taylor

Q.78 Human needs are classified into 5 categories in hierarchy. Psychological needs, Safety needs,

Social needs, Self Esteemed needs and Self Actualization needs. This is called

_______________Hierarchy of needs.

Ans. Maslows Hierarchy of needs.

Q. 80 Pattern of actions expected of a person is called __________ (Role/Position)

Ans. _________________is Power related concept. (Role/Position)

Q. 81 What is 360 degree appraisal.

Ans. When appraisal is done by all the persons around the employee i.e.

customers/superiors/colleagues/Self and Subordinates.

Q. 82 Who is Nurturing Parent in Parent Ego?

Ans. A person who understands and cares about other people.

Q. 83 A person who plans the work in such a way that urgent matters are disposed of in time.

Ans. Type B persons

Q. 84 What is MBO (Management by Objectives).

Ans. When short term goals are set by superiors and employees jointly.

Q. 85 In Transactional Analysis, which of the following is most desirable life position.

Ans. I am OK, You are OK.

Q. 86 On specified date, bonds are converted into shares at pre-determined price. These bonds are

called _______________Bonds. (Flexible/Convertible)

Ans. Convertible

Q. 87 A bond with Face value of Rs. 10000 each and coupan rate 8%. If market rate increases to 8.25

%

1. Price of Bond will ______________(Rise/decline)

2. Current Yield ________________( Rise/decline)

Ans 1. Decline

2. Rise

Q. 88 A bond with Face value of Rs. 10000 each and coupan rate 8%. If market rate falls to 7.5%

1. Price of Bond will ______________(Rise/decline)

2. Current Yield ________________( Rise/decline)

1. Rise

2. Decline

Q. 89 What is objective of Simulation?

Ans. a) To find out causes of past occrance.

b) To forecast future effects of assumed circumstances.

Q. 90 What is sequence of simulation?

Ans. Start, define problem, construct Simulation model and then run the model.