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Check Your ProgressMODULE A

UNIT-1 Fundamentas o! Econom"cs# M"croeconom"cs and

Macroeconom"cs and T$%es o! Econom"cs

&uest"on 1' Adam (m"th de)ned Econom"cs as a*

The cho"ces are*

1. Study of welfare

2. Study of 'means' and 'ends'

3. Study of Wealth

4. None of these

+"ght Ans,er* ./ (tud$ o! 0eath

&uest"on ' Macroeconom"cs deas ,"th2

The cho"ces are*

(1) Gross domestic product

(2) nemployment rate

(3) !rice indices

(4) "ll the a#o$e

+"ght Ans,er* 3/ A the a4o5e'

&uest"on .' 0ho "s cons"dered as the !ounder o! the )ed o!

M"croeconom"cs6

The cho"ces are*

(1) %ionel &o##ins

(2) "martya Sen.

(3) "dam Smith

(4) !rof. "lfred arshall

+"ght Ans,er* ./ Adam (m"th

&uest"on 3' M"croeconom"cs "s concerned ,"th the 4eha5"our o!


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The cho"ces are*

(1) Gross domestic product

(2) ndi$idual entities

(3) conomy as a whole

(4) None of the a#o$e

+"ght Ans,er* / Ind"5"dua ent"t"es'

&uest"on 7' Ends re!er to

The cho"ces are*

(1) *emand

(2) &esources

(3) tility

(4) Wants

+"ght Ans,er* 3/ 0ants

&uest"on 8' A market econom$ "s one

The cho"ces are*

(1) n which indi$iduals and pri$ate +rms ma,e the ma-or decisions a#outproduction and consumption.

(2) n which the o$ernment ma,es all important decisions a#outproduction and distri#ution.

(3) /oth (1) and (2)

(4) None of these

+"ght Ans,er* 1/ In ,h"ch "nd"5"duas and %r"5ate )rms make thema9or dec"s"ons a4out %roduct"on and consum%t"on'

&uest"on :' Ind"a "s a

The cho"ces are*

(1)0apitalistic conomy

(2) Socialistic conomy

(3) ied conomy


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(4) %aissefaire economy

+"ght Ans,er* ./ M";ed Econom$

&uest"on


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&uest"on1' Demand (chedue "s the

The cho"ces are*

(1) &elationship #etween demand and 6uantity #ouht

(2) &elationship #etween price and 6uantity #ouht

(3) &elationship #etween price and demand

(4) None of these

+"ght Ans,er* / +eat"onsh"% 4et,een %r"ce and @uant"t$ 4ought

&uest"on 'Market Demand Cur5e o4e$s the

The cho"ces are*

(1) %aw of downwardslopin demand

(2) %aw of upwardslopin demand

(3) %aw of diminishin

(4) None of these

+"ght Ans,er* 1/ La, o! do,n,ard-so%"ng demand

&uest"on .' Forces 4eh"nd the demand cur5e

The cho"ces are*

(1) pectation a#out future economic conditions

(2) "$erae ncome

(3) 0ost of production

(4) /oth (1) and (2)

+"ght Ans,er* 3/ oth 1/ and /

&uest"on 3' A do,n ,ard (o%"ng Demand Cur5e reates @uant"t$

demanded to

The cho"ces are*

(1) Supply

(2) ncome


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(3) !rice

(4) *emand

+"ght Ans,er* ./ Pr"ce

&uest"on 7' (h"!ts "n (u%%$ means

The cho"ces are*

(1) When chanes in factors other than oods own price a7ect the 6uantity

supplied.

(2) When chanes in oods own price a7ect the 6uantity supplied.

(3) /oth (1) and (2)

(4) None of these

+"ght Ans,er* 1/ 0hen changes "n !actors other than goods o,n %r"ce

aBect the @uant"t$ su%%"ed'

&uest"on 8' The E@u""4r"um Pr"ce "s aso kno, as

The cho"ces are*

(1) ar,et price

(2) 8ptimum price

(3) &eal price

(4) ar,etclearin price

+"ght Ans,er* 3/ Market-cear"ng %r"ce

&uest"on :' Forces 4eh"nd the (u%%$ Cur5e

The cho"ces are*

(1) 0ost of production

(2) echnoloical ad$ances

(3) Go$ernment policies

(4) "ll of the a#o$e

+"ght Ans,er* 3/ A o! the a4o5e


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The Cho"ces are*

(1) Supply

(2) ncome

(3) !rice

(4) *emand

+"ght Ans,er* ./ Pr"ce

&uest"on >' Market e@u""4r"um comes at the %r"ce at ,h"ch @uant"t$

demanded e@uas to @uant"t$

The cho"ces are*

(1) !roduced

(2) Supplied

(3) n$entory

(4) *emand

+"ght Ans,er* / (u%%"ed

Un"t-. Mone$ (u%%$ and Inat"on

Tick the Correct Answer

&uest"on 1' Mone$ (u%%$ re!ers to

The cho"ces are*

(1) he amount of money in #an,s

(2) he amount of money with the people

(3) he amount of money in circulation in an economy

(4)None of the a#o$e.

+"ght Ans,er* ./ The amount o! mone$ "n c"rcuat"on "n an econom$

&uest"on ' Narro, Mone$ cons"sts o!

The cho"ces are*


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(1) 0urrency with the !u#lic9 *emand *eposits9 '8ther '*eposits with the &/

(2) 0urrency with the !u#lic9 ime *eposits9 :8ther' *eposits

(3) ime deposits9 *emand *eposits9 '8ther' *eposits with the &/

(4) 0urrency with the !u#lic9 *emand *eposits

+"ght Ans,er; 1/ Currenc$ ,"th the Pu4"c# Demand De%os"ts# OtherDe%os"ts ,"th the +I

&uest"on .' T"me De%os"ts are

The cho"ces are*

(1) !aid on demand

(2) Not paid on demand

(3) &elati$ely less li6uid than cash and demand deposits

(4)/oth (1) and (2)

+"ght Ans,er* 3/ oth 1/ and /

&uest"on3' Demand De%os"ts are

The cho"ces are*

(1) !aid on demand

(2) Not paid on demand

(3) &elati$ely less li6uid than cash and demand deposits

(4) /oth (1) and (2)

+"ght Ans,er* 1/ Pa"d on demand&uest"on 7' 0h"ch o! the !oo,"ng statements "s true a4outInat"on6

The cho"ces are*

(1) " rise in the eneral le$el of prices

(2) %eads to fall in purchasin power

(3) /oth (1) and (2)


+"ght Ans,er* ./ oth 1/ and /&uest"on 8' Pr"ce Inde; used "n Ind"a to cacuate "nat"on !or %o"c$!ormuat"on "s

The cho"ces are*

(1) 0onsumer price inde

(2) G*! de


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(3) Wholesale price inde

(4) &etail price inde

+"ght Ans,er* ./ 0hoesae %r"ce "nde;

&uest"on :' Consumer %r"ce "nde; measures %r"ces at

The cho"ces are*

(1) Wholesale le$el

(2) &etail le$el

(3) !roducer le$el

(4) 0onsumer le$el

+"ght Ans,er; / +eta" e5e

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UNIT 3 -TGEO+Y OF INTE+E(T

ic, the 0orrect "nswer

=uestion1. !ic, odd man out;

he choices are;

(1) &ent

(2) nterest

(3) Waes(4) oney

+"ght Ans,er* 3/ Mone$

=uestion 2. "ccordin to >..?eynes rate of interest and #ond prices arerelated

he 0hoices are;

(1) n$ersely

(2) *irectly

(3) !arallel(4)@oriontal

+"ght Ans,er* 1/ In5erse$

=uestion 3. ?eynes eplained interest in terms of

he choices are;

(1) &eal forces


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(2) conomic forces

(3) onetary forces

(4) Social forces

+"ght Ans,er* ./ Monetar$ !orces

=uestion 4. he initials % stand for

he choices are;

(1) %i6uidity odel

(2) %i6uidity preference and oney supply e6uili#rium

(3) %i6uidity and oney odel

(4) %i6uidity and money

+"ght Ans,er* / L"@u"d"t$ %re!erence and Mone$ su%%$e@u""4r"um

=uestion A. S cur$e is deri$ed from

he choices are;

(1) 0lassical theory.

(2) ?eynesian li6uidity preference theory of interest

(3) %aw of diminishin marinal utility

(4) %aw of e6uimarinal utility

+esuts* 1/ Cass"ca theor$'

=uestionB. % cur$e is deri$ed from he choices are;

(1) 0lassical theory

(2) ?eynesian li6uidity preference theory of interest

(3) %aw of diminishin marinal utility

(4) %aw of e6uimarinal utility

+"ght Ans,er* / He$nes"an "@u"d"t$ %re!erence theor$ o! "nterest

UNIT-7 us"ness C$cesT"ck the Correct Ans,er*

&uest"on1'us"ness C$ce "s aso kno,n as


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The cho"ces are*

(1) ntrepreneur cycle

(2) conomic cycle

(3) Cicious circle

(4) None of the po$erty

+"ght Ans,er* / Econom"c c$ce

&uest"on ' P"ck odd man out

The cho"ces are*

(1) /oom

(2) *epression

(3) Slowdown

(4) &eco$ery+"ght Ans,er* ./ (o,do,n

&uest"on' . Underem%o$ment o! 4oth men and mater"as "s acharacter"st"c o! ,h"ch %hase6

The cho"ces are*

(1) *epression

(2) /oom

(3) &eco$ery

(4) &ecession+"ght Ans,er; 1/ De%ress"on

&uest"on 3' 0h"ch %hase o! the 4us"ness c$ce s aso kno,n as thecr"s"s6

The cho"ces are*

(1) /oom

(2) *epression

(3) &eco$ery

(4) &ecession+"ght Ans,er* 3/ +ecess"on


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UNIT 8- Ind"an Econom$ and Jar"ous (ectors o! the

Econom$

T"ck the Correct Ans,er.

&uest"on 1' The a5erage gro,th rate o! Ind"an econom$ o5er a

%er"od o! 7 $ears s"nce 1>


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The Cho"ces are*

(1)!rimary Sector

(2) Secondary Sector

(3) ertiary Sector


+"ght Ans,er* ./ Tert"ar$ (ector

&uest"on 8' The share o! ser5"ces "n the nat"ona "ncome !rom theast 1? $ears "s

The cho"ces are*

(1) decreasin

(2) 0onstant

(3) ncreasin

(4)Nominal

+"ght Ans,er* ./ Increas"ng

UNIT :- Econom"c +e!orms

T"ck the Correct Ans,er.

&uest"on 1' +e!orms ,ere started "nThe cho"ces are*

(1) 1DF1

(2) 1DD1

(3) 1D1

(4) 1DDA

+"ght Ans,er* / 1>>1

&uest"on ' T,"n econom"c "m4aances e;"sted dur"ng 1>>?

The cho"ces are*

(1) Eiscal crisis and eternal payment crisis

(2) Eiscal and monetary crisis

(3) onetary and eternal payment crisis



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+"ght Ans,er* 1/ )sca cr"s"s and e;terna %a$ment cr"s"s

&uest"on.' +ea (ector Po"c$ means !ocus on ; ; ; "n the ear$stages o! re!orm %rocess'

The cho"ces are*

(1) inin and 6uarryin(2) lectricity

(3) anufacturin sector


+"ght Ans,er* ./ Manu!actur"ng sector

&uest"on3' E;%and I T E (.

The cho"ces are*

(1) nformation echnoloy and lectronic Ser$ices

(2) nformation echnoloy and na#led Ser$ices

(3) nformation echnoloy and Hcient Ser$ices


+"ght Ans,er* / In!ormat"on Technoog$ and Ena4ed (er5"ces'

&uest"on 7' E;%and 0 M A

(1) Wealth and eans "d$ances

(2) Wealth and onetary "d$ances

(3) Ways and onetary "d$ances(4) Ways and eans "d$ances.

+"ght Ans,er* 3/ 0a$s and Means Ad5ances'

&uest"on8' EKPAND N E F T'

The cho"ces are*

(1) Nominal lectronic Eunds ransfer

(2) National lectronic Eunds ransfer

(3) National lectronic Eunds ransformation


+"ght Ans,er* / Nat"ona Eectron"c Funds Trans!er


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UNIT < Monetar$ Po"c$ and F"sca Po"c$

T"ck the Correct Ans,er

&uest"on 1' ank rate "s aso re!erred to as

The cho"ces are*

(1) *iscount rate

(2) Su#sidy rate

(3) arinal rate


+"ght Ans,er* 1/ D"scount rate

&uest"on ' E;%and C + +

The cho"ces are*

(1) 0redit &eference &ate(2) 0redit &eser$e &atio

(3) 0ash &eser$e &atio

(4) 0ash &eser$e &ate

+"ght Ans,er* ./ Cash +eser5e +at"o

&uest"on.' E;%and ( L +

(1) Statutory %e$erae &atio

(2) Statutory %i6uidity &atio

(3) Statutory %i6uidity &ate

(4) Static %i6uidity &atio

+"ght Ans,er* / (tatutor$ L"@u"d"t$ +at"o

&uest"on3' E;%and O M O

(1) 8pen ar,et 8perations

(2) 8pen ar,et 8raniation

(3) 8pen onetary 8perations


+"ght Ans,er* 1/ O%en Market O%erat"ons

&uest"on7' E;%and F + M Act

The cho"ces are*

(1) Eiscal &esponsi#ility and /usiness anaement "ct


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(2) Eiscal &ole and /udet anaement "ct

(3) Eiscal &ole and /usiness anaement "ct

(4) Eiscal &esponsi#ility and /udet anaement "ct

+"ght Ans,er* 3/ F"sca +es%ons"4""t$ and udget Management Act

&uest"on 8' F + M Act enacted "n

The cho"ces are*

(1) 2II1 (2) 2II3 (3) 2II4 (4) 2III

+"ght Ans,er; / ??.

UNIT > -DP Conce%ts


&uest"on1'Persona Consum%t"on e;%end"ture on househodsd"5"ded "nto2

The cho"ces are*

(1) *ura#le oods

(2) Nondura#le oods

(3) Ser$ices

(4) "ll of the a#o$e

+"ght Ans,er* 3/ A o! the a4o5e

&uest"on ' Factors o! Product"on are*

The cho"ces are;

(1) %and9 %a#our and 0apital

(2) "ssets9 achineries and oney

(3) %and9 %a#our9 0apital and ntrepreneur

(4) None of the a#o$e.

+"ght Ans,er* ./ Land# La4our# Ca%"ta and Entre%reneur

&uest"on .' Market Pr"ce "s the ; ; ; %r"ce !or ,h"ch goods orser5"ce "s oBered at the market %ace'

The cho"ces are*

(1) Nominal !rice9 (2) conomic !rice (3) arinal !rice9 (4) *e+cit !rice.

+"ght Ans,er* / Econom"c Pr"ce


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UNIT 1?- Un"on udget


&uest"on1' E;%and N C C D

The cho"ces are*

(1) National 0ouncil on 0rime and *elin6uency

(2) National council on 0redit and *e#entures

(3) National council on 0ommerce and dereulation


+"ght Ans,er* 1/ Nat"ona Counc" on Cr"me and De"n@uenc$

&uest"on' P"ck odd man out

The cho"ces are*

(1) 0ustoms

(2) Ser$ice a

(3) nterest &eceipts

(4) ncome a

+"ght Ans,er* ./ Interest +ece"%ts

&uest"on.' P"ck odd man out

The cho"ces are*

(1) Securities issued aainst Small Sa$ins

(2) &eco$eries of %oans J "d$ances

(3) State !ro$ident Eunds

(4) 8ther &eceipts

+"ght Ans,er* / +eco5er"es o! Loans Ad5ances

&uest"on3' P"ck odd man out'


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The cho"ces are*

(1) %oans to !u#lic nterprises

(2) !ensions

(3) Su#sidies

(4) !olice

+"ght Ans,er* 1/ Loans to Pu4"c Enter%r"ses

&uest"on 7' Net )sca de)c"t "s the d"Berence 4et,een

The cho"ces are*

(1) ross +scal de+cit and net interest payments

(2) ross +scal de+cit and interest payments

(3) ross +scal de+cit and net lendin


+"ght Ans,er* ./ gross )sca de)c"t and net end"ng

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UNIT-11 Chaenges Fac"ng Ind"an Econom$

T"ck the Correct Ans,er

&uest"on 1' P"ck odd man out

The cho"ces are*

(1) /rail

(2) Erance

(3) ndia

(4) &ussia+"ght Ans,er* / France

&est"on' E;%and EMEs

The cho"ces are*

(1) ternal ar,etin conomics

(2) n$ironmental Hciency


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(3) merin ar,et conomies


+"ght Ans,er* ./ Emerg"ng Market Econom"es

&uest"on .' E;%and PL+s

The cho"ces are*

(1) /enchmar, !rime %endin &ates

(2) /enchmar, !rime %oan &ates

(3) /enchmar, !rocess %endin &ates

(4)None of the a#o$e

+"ght Ans,er* 1/ enchmark Pr"me Lend"ng +ates

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MODULE

UNIT 1. (am%"ng Methods

State whether followin statements are true or false.


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(a) When the items included in a sample are #ased on the -udement of theindi$idual conductin the sample9 the sample is said to #e nonrandom.rueor Ealse

Ans,er* True

(#) " statistic is a characteristic of a population. rueor Ealse

Ans,er* Fase

(c) " samplin plan that selects mem#ers from a population at uniforminter$als in time order or space is called strati+ed samplin.

rue or Ealse

Ans,er* True

(d) "s a eneral rule9 it is not necessary to include a +nite populationmultiplier in a computation for standard error of the mean when the sie of the sample is reater than AI.

rue or Ealse

Ans,er* Fase

(e) he pro#a#ility distri#ution of all the possi#le means of samples is ,nownas the sample distri#ution of the mean.

rue or Ealse

Ans,er* True

(f)he principles of simple random samplin are the theoretical foundationfor statistical inference.

rue or Ealse

Ans,er* True

() he standard error of the mean is the standard de$iation of thedistri#ution of sample means.

rue or Ealse

Ans,er* True

(h) " samplin plan that di$ides the population into wellde+ned roups fromwhich random samples are drawn is ,nown as cluster samplin.

rue or Ealse

Ans,er* True

() With increasin sample sie9 the samplin distri#ution of the meanapproaches normality9 reardless of the distri#ution of thepopulation.

rue or Ealse

Ans,er* True


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(-) he standard error of the mean decreases in direct proportion to samplesie.

rue or Ealse

Ans,er* True

(,) o perform a complete enumeration9 one would need to eamine e$eryitem in a population. rueor Ealse

Ans,er* True

(l) n e$eryday life9 we see many eamples of in+nite populations of physicalo#-ects. rue or Ealse

Ans,er* Fase

(m) o o#tain a theoretical samplin distri#ution9 we consider all the samplesof a i$en sie.

rueorEalse

Ans,er* True

(n) %are samples are always a ood idea #ecause they decrease thestandard

error. rueorEalse

Ans,er* True

(o) f the mean for a certain population were 1A9 it is li,ely that most of thesamples we could ta,e from that population would ha$e means of 1A.

rue or EalseAns,er* Fase

(p) he standard error of a sample statistic is the standard de$iation of itssamplin distri#ution.

rue or Ealse

Ans,er* True

(6) >udement samplin has the disad$antae that it may lose somerepresentati$e ness of a sample.

rue or Ealse

Ans,er* True(r) he samplin fraction compares the sie of a sample to the sie of the

population. rueor Ealse

Ans,er* True

(s) "ny samplin distri#ution can #e totally descri#ed #y its mean and


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standard de$iation. rueorEalse

Ans,er* True

(t) he precision with which the sample mean can #e used to estimate the

population mean decreases as the standard error increases. rue or Ealse

Ans,er* True

Pease seect the correct ans,er !rom the cho"ces %ro5"ded-

1. Which of the followin is a method of selectin samples from a populationK

(a) >udement samplin (#) &andom samplin

(c) !ro#a#ility samplin (d) "ll of these (e) (a) and (#) #ut not (c)

Ans,er* e/ a/ and 4/ 4ut not c/

2. 0hoose the pair of sym#ols that #est completes this sentence; Lis aparameter9 whereas M is a statistic.

(a) N9 (#) (y9 s

(c) N9 n (d) "ll of these (e) (#) and (c) #ut not (a)

Ans,er* e/ 4/ and c/ 4ut not a/

3. n random samplin9 we can descri#e mathematically how o#-ecti$e ourestimates are. Why is thisK

(a) We always ,now the chance that any population element will #e includedin the sample

(#) $ery sample always has an e6ual chance of #ein selected

(c) "ll the samples are eactly the same sie and can #e counted

(d)None of these

(e) (a) and (#) #ut not (c)

Ans,er* e/ a/ and 4/ 4ut not c/

4. Suppose you are performin strati+ed samplin on a particular populationand ha$e di$ided it into strata of di7erent sies. @ow can you now ma,e yoursample selectionK

(a) Select at random an e6ual num#er of elements from each stratum

(#) *raw e6ual num#ers of elements from each stratum and weih theresults

(c) *raw num#ers of elements from each stratum proportional to theirweihts in the population.


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(d) (a) and (#) only

(e) (#) and (c) only

Ans,er* e/ 4/ and c/ on$

A. n which of the followin situations would (99 is e6ual to (Eor9rn #e the

correct formula to use for computin(a) Samplin is from an in+nite population

(#) Samplin is from a +nite population with replacement

(c) Samplin is from a +nite population without replacement

(d) (a) and (#) only

(e) (#) and (c) only

Ans,er* d/ a/ and 4/ on$

B. he dispersion amon sample means is 9 the dispersion amon thesampled items themsel$es #ecause

(a) ach sample is smaller than the population from which it is drawn

(#) Cery lare $alues are a$eraed down and $ery small $alues are a$eraedup

(c) he sampled items are all drawn from the same population

(d) None of these

(e) (#) and (c) #ut not (a)

Ans,er* 4/ Jer$ arge 5aues are a5eraged do,n and 5er$ sma5aues are a5eraged u%

. Suppose that a population with N is e6ual to 144 has p is e6ual to 24.What is the mean of the samplin distri#ution of the mean for samples of sie 2AK

(a) 24(#) 2

(c)4.F

(d) 0annot #e determined from the information i$en

Ans,er* a/ 3

F. he central limit theorem assures us that the samplin distri#ution of the mean

(a) s always normal

(#) s always normal for lare sample sies

(c) "pproaches normality as sample sie increases


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(d) "ppears normal only when N is reater than 19III

Ans,er* 4/ Is a,a$s norma !or arge sam%e s"=es

D. Suppose that9 for a certain population9 sima #ar is calculated as 2I

when samples of sie 2A are ta,en and as 1I when samples of sie 1II areta,en. " 6uadruplin of sample sie9 then9 only hal$ed sima #ar. We canconclude that increasin sample sie is

(a) "lways coste7ecti$e (#) Sometimes coste7ecti$e (c) Ne$er 0oste7ecti$e

Ans,er* c/ Ne5er Cost-eBect"5e

1I. Eor the pre$ious 6uestions9 what must #e the $alue of ( for this in+nitepopulationK

(a) 19III (#) AII

(c) 3.A (d) 1II

Ans,er* d/ 1??

11. he +nite population multiplier does not ha$e to #e used when thesamplin fraction is

(a) Greater than I.IA (#) Greater than I.AI

(c) 9 I.AI (d) Greater than I.DI

(e) None of these

Ans,er* e/ None o! these

12. he standard error of the mean for a sample sie of two or more is

(a) "lways reater than the standard de$iation of the population

(#) Generally reater than the standard de$iation of the population

(c) sually 9 the standard de$iation of the population

(d) None of these

Ans,er* c/ Usua$ # the standard de5"at"on o! the %o%uat"on

13. " #order patrol chec,point that stops e$ery passener $an is usin

(a) Simple random samplin (#) Systematic samplin(c) Strati+ed samplin (d) 0omplete enumeration

Ans,er* d/ Com%ete enumerat"on

14. n a normally distri#uted population9 the samplin distri#ution of themean

(a) s normally distri#uted


24/51

(#) @as a mean e6ual to the population mean

(c) @as a standard de$iation e6ual to the population standard de$iationdi$ided #y the s6uare root of the sample sie

(d) "ll of the a#o$e

(e) /oth (a) and (#)Ans,er* d/ A o! the a4o5e

1A. he central limit theorem

(a) &e6uires some ,nowlede of the fre6uency distri#ution

(#) !ermits us to use sample statistics to ma,e inferences a#out populationparameters

(c) &elates the shape of a samplin distri#ution of the mean to the man of the sample

(d) &e6uires a sample to contain fewer than 3I o#ser$ationsAns,er* 4/ Perm"ts us to use sam%e stat"st"cs to make "n!erencesa4out %o%uat"on %arameters

1. " portion of the elements in a population chosen for direct eaminationor measurement is a OOOOOOOOOOOOOOOOOOO

Ans,er* (am%e

F. he proportion of the population contained in a sample istheOOOOOOOOOOOOOOOOOOO

Ans,er* (am%"ng !ract"on'

1D. OOOOOOOOOOOOOOO is the process #y which inferences a#out a populationare made from information a#out a sample.

Ans,er* (tat"st"ca "n!erence'

2I.OOOOOOOOOOOOO samplin should #e used when each roup considered hassmall $ariation within itself #ut there is wide $ariation #etween di7erentroups.

Ans,er* (trat")ed'

2% " method of random samplin in which elements are selected from thepopulation at uniform inter$als is calledOOOOOOOOOOOOOOOO samplin.

Ans,er* ($stemat"c

2 2. OOOOOOOOOOO is the deree of accuracy with which the sample mean canestimate the population mean.

Ans,er* (tandard error o! the mean'

23. Within a population9 roups that are similar to each other (althouh theroups themsel$es ha$e wide internal $ariation) are called OOOOOOOOOOOO


25/51

Ans,er* Custer'

24. " samplin distri#ution of the proportion is a pro#a#ility distri#ution of the OOOOOOOOOO

Ans,er* (am%e %ro%ort"on'

5555555555555555555555555555555555555555555555555555555555555555555555555555

MODULE C

G+M

UNIT ? Fundamentas o! Guman +esources Management

(tate ,hether the !oo,"ng statements are true or !ase*

1. !eople component of an oraniation has always recei$ed due attention.

Ealse.

2. ndustrial re$olution led to the rise of unions. Ealse

3. anaement theories and approach to people manaement are $ery closely

related.

rue.

4. Scienti+c anaement approach is the foundation of today's concept of @uman


26/51

&esource anaement. Ealse.

A. %a#our anaement to @uman &esource anaement is not -ust a 6uantitati$e

epansion of the people manaement function #ut is 6ualitati$ely di7erent. rue.

B. !ersonnel anaement and @ & * are synonymous terms. Ealse.

. @ & * and human relations mo$ement are not the same. rue.

F. @ & and @ & * are unrelated to each other. Ealse.

D. @ & * is a su#system of @ & . rue.

1I. @ & is a su#system of @ & *. Ealse.

11. @ & * and @ & are more or less same concepts. Ealse.

(tate ,hether the !oo,"ng statements are true or !ase*

1' he role of the @ & Eunctionaries has underone 6ualitati$e chane. rue.

' @ & functionaries ha$e total responsi#ilities a#out the manaement of human

resource in the oraniation. Ealse.

.' @ & functionaries arc responsi#le for de$elopment of @ &related systems.

rue.

3' @ & professionals must ha$e 6uali+cations in @ & . rue.

7' %ine anaers should not meddle with the manaement of @ &. Ealse.

8' &ole of @ & professionals is con+ned to @ & acti$ities of the oraniations hence

they should not #e in$ol$ed in strateic plannin. Ealse.

(tate ,hether the !oo,"ng statements are True or Fase*

1. ndustrial *isputes "ct was the #einnin of manaement of people in ndia.

Ealse.

2. "t the time of independence9 ndians were not amon the industrialists #ut

personnel and welfare oHcers were $isi#le. rue.

3. %a#our welfare9 industrial relations9 personnel administration were synonymous

to !ersonnel anaement. Ealse.

4. he !ersonnel anaement was accepted as a profession #y 1DBIs. rue.

A. Some ndian oraniations had adopted @ & approach lon time ao e$en when

it was not tal,ed a#out. rue


27/51

UNIT 1 De5eo%ment o! Guman +esources


1/ $en thouh the focus on people manaement underwent chane9 the systemswhich were de$eloped in the past could continue and need not chane. Ealse.

/ !erformance "ppraisal9 rainin and *e$elopment are critical elements

(su#systems) in the entire @uman &esource *e$elopment System of @&. rue.

./ Eor @& functionaries9 ma-or challene in trainin is to ,eep the wor,force

updated with current ,nowledeP what is not sini+cant now can #e forotten.

Ealse.

3/ New s,ills can #e easily #lended with the old ones. Ealse.

7/ >o# "nalysis is the #asic framewor, for most of the @&* systems. rue.

8/ !erformance "ppraisal is one system which has 6ualitati$ely ot modi+ed.

rue.

:/ !erformance and !otential "ppraisal systems ha$e lot in common. Ealse.

/ When an oraniation de$elops in sie and its #usiness9 it is called

oraniational de$elopment. Ealse.


1/ rainin should #e i$en in the oraniation #ecause people li,e to learn new

thins. Ealse.

/ mployees can learn anythin that they want for their de$elopment. Ealse.

./ rainin9 education and de$elopment ha$e di7erent meanins9 they need to #e

di7erentiated. rue.

3/ !edaoy and androoy mean the same thin. Ealse.

7/ %earnin will not ta,e place if there is no moti$ation. rue.

8/ t is #etter to do all the trainin inhouse. Ealse.

:/ rainin need analysis is a systematic process of loo,in into the aps #etween

what is there and what is desired. rue.


28/51

>/ he methodoloies adopted in trainin situations are decided #y the trainer's

s,ill. Ealse.

1?/ $aluation of trainin is an important step #ut it may not #e possi#le to

6uantify all the aspects. rue.

11/ 8perational personnel do not need trainin in teachin methodoloy. Ealse.

1/ !rimary purpose of trainin is learnin related to present -o#. rue.

1./ he purpose of de$elopment is learnin for rowth and not related to any

speci+c -o#. rue.


1/ "ttitude is directed towards some o#-ect a#out which a person has feelins and

#eliefs. rue.

/ "ttitudes do not ha$e any impact on the emotions of a person. Ealse.

./ "ttitudes of employees ha$e sini+cant impact on their wor, performance.

rue.

3/ "ttitudes are formed #ased on facts and o#-ecti$e criteria. Ealse.

7/ 0hanin attitude is not possi#le for most of the people. Ealse.

8/ here are ways in which the #arriers can #e o$ercome and attitudes can #e

chaned. rue.


1. 8raniations cannot ta,e responsi#ility of indi$idual's career. Ealse.

' 0areer !lannin is not one time eercise9 plans ha$e to chane. rue.

.' 0areer !lannin is se6uencin e$ents for de$elopment. rue.

3' 0areer !roression is the riht of the indi$idual. Ealse.

7' 0areer !lannin is a new concept for ndian oraniations. Ealse.

8' 0areer !lannin can #ecome successful when the @& functionaries9 the indi$idualand the immediate super$isor percei$e this as a -oint responsi#ility. rue.


1' 8raniational chanes are not e7ecti$e unless the people also chane their way

of thin,in accordinly. rue.


29/51

' ndi$iduals can accept only those chanes that relate to the wor,. Ealse.

.' 8raniations need to ma,e the indi$idual chane. Ealse.

3' Selfperceptions are enouh to #rin a#out impro$ements. Ealse.

7' !ersonal eHcacy is how eHciently one is doin his -o#. Ealse.

8' '%ocus of 0ontrol' refers to one's #elief a#out who is responsi#le for the e$ents in

one's life. rue.

:' !eople ha$e di7erent moti$ational #ases. Some recei$e satisfaction in achie$in

#y themsel$es9 some others #y wor,in in roups while some others #y eertin

in


30/51

2. ype Q/R is an easy oin indi$idual. 9 rue.

3. ype Q"R person is not achie$ement oriented. 9 rue.

4. ype Q/R person does not eperience any competiti$e dri$e in his acti$ity. 9

Ealse.

A. ri,son's model of personality has eiht staes. 9 rue.

B. *urin youth9 accordin to ri,son9 one de$elops a need for intimate relationship

with others. 9 rue.

. here is mutuality of interest amon oraniational mem#ers. 9 rue.

F. ype Q/R person does se$eral thins at a time. 9 Ealse.

Ans,er the !oo,"ng True or Fase*

1' d is the foundation of the unconscious. . rue.

' n order to create a normal personality there should #e a #alance in the

relationship amon the id9 the eo and the super eo. . rue.

.' !eople #eha$in in a forceful manner in most situations could #e descri#ed as

sentimental. . Ealse.

3' We ha$e an imae of our own and our actions are consistent with that imae. .

rue.

7' !ersonality is a sum total of all that a person has learnt. . rue.

Ans,er the !oo,"ng statements "n True or Fase*

1' @uman #rain is #elie$ed to contain de+nite pleasura#le and painful areas. .

rue.

' tro$erts are 6uiet9 re


31/51

Ans,er the !oo,"ng statements "n Yes or No*

1' he term oti$ation has #een deri$ed from the %atin word 'mo$ere' (to mo$e).

. es.

' aylor's Scienti+c anaement theory #elons to 0ontent heories of oti$ation.

. No.

.' @uman &elations odel is one of the early theories of oti$ation. . es

3' lton ayo contri#uted to a reat etent to @uman &elation odel. . es

Pease ment"on ,hether the !oo,"ng statements are true or !ase*

1' here are +$e types of needs accordin to aslow's theory. . rue.

' Selfesteem needs is the hihest need in aslow's Need @ierarchy. . Ealse.

.' @er#er theory is prescripti$e in nature. . rue.

3' @er#er's theory is #ased on two factors namely moti$ators and hyiene. .

rue.

(tate ,hether the !oo,"ng statements are True or Fa,*

1' &G theory was de$eloped #y "lderfer.

' here are four needs as per "chie$ement oti$ation theory.

.' nstrumentality theory is another name for pectancy odel.

3' here are +$e items in 6uity theory.

7' &einforcement theory has positi$e and neati$e reinforcements.

8' ndi$idual's #eha$iour in one situation does not in


32/51

8' &ole set con


33/51

:' Q0afeteriaR or QenuR option of compensation refers to pro$idin cafeteria or

canteen facilities to the employees. Ealse.


34/51

UNIT 7 G+M and In!ormat"on Technoog$

Check Your Progress (A)

State whether the followin statements are rue or Ealse;

1' he information technoloy is rele$ant only to de$eloped countries notde$elopin ones. . Ealse.

' nformation echnoloy is a merin of computin and communicationtechnoloy. . rue.

.' can e7ecti$ely9 su#stitute our present manual systems and no otherchane will #e re6uired. . Ealse.

3' can #e used in @& to reduce the drudery of accountin and preparinsalaries. . Ealse.

7' here is a certain loss of power in as no sinle one has eclusi$eauthority and access to information. . rue.

8' he positi$e aspect of is that more num#er of people can #e utilied forstrateic decision ma,in. . rue.

:' has reduced the importance of human resources in oraniations. .Ealse.


1' *ata#ase is useful only for ta,in decisions reardin trainin andplacement. . Ealse.

' *ecisions #ased on computeried data can impro$e the o#-ecti$ity9

fairness and percei$ed as un#iased in decisionma,in. . rue..' @uman &esource nformation System (@&S) can #e used for ta,in $italdecisions relatin to indi$idual employees. . rue.

3' 0omputeried data#ase can allow only one person to access it at a time.. Ealse.

7' 0on+dentiality cannot #e maintained in computeried data as it can #eaccessed #y anyone from any location. . Ealse.

8' ntellience for decision ma,in cannot #e em#edded into thecomputeried systems. . Ealse.

(tate ,hether the !oo,"ng statements are True or Fase*1' &esearch orientation in @& is not as necessary as in other functions. .Ealse.

' @& research is helpful to feel the pulse of the wor,force. . rue.

.' 0ost of @& &esearch is much hiher than its percei$ed #ene+ts. . Ealse.

3' @& research has not #een i$en due importance in #an,s. . rue.


35/51

7' o remain sensiti$e to internal en$ironment9 reular opinion sur$eys9climate studies9 etc.9 should #e conducted. . rue.

8' !eople do not ta,e interest in sur$eys9 therefore the sur$eys are useless.. Ealse.

:' Eor a #etter understandin of the intani#le en$ironment which is $erycritical9 a climate or a -o# satisfaction sur$ey can pro$ide data for action. . rue.


1' ?nowlede manaement most closely refers to capturin tacit ,nowledeof people for future use. . rue.

' echnoloy o7ers an opportunity in tailorin and desinin trainininter$ention to suit indi$idual learner. . rue.

.' na#les learner to study at his con$enient time and place and can ha$epri$acy. . rue.

3' 0annot simulate to reallife situation. . Ealse.

7' 0ommunication technoloy facilitated anywhere learnin. . rue.

8' echnoloydri$en trainin has made the trainers totally redundant. .Ealse.


36/51

MODULE D

C+EDIT MANAEMENT

UNIT 8 O5er5"e, o! Cred"t Management

F" "n the 4anks ,"th correct cho"ce*

1' "s per &/ uidelines9 the turno$er method of assessment should #eapplied for wor,in capital limit of up to &s ..in case of SS units.

(a) 8ne 0rore (#) wo 0rores (c ) Five Crores (d) en 0rores

' nterest rates9 reulated #y &/9 are applica#le for credit limit up to &s ..la,h.

(a) 8ne (#) Two (c ) Ei$e (d) en

.' he total priority sector taret for forein #an,s9 operatin in ndia9 is ..

(a) 2IT (#) 32% (c ) 4IT (d) 1FT

State True or False:

3' "s per &/ uidelines9 the assets should #e classi+ed as Standard9 Nonstandard and dou#tful. . Ealse.

7' "s per &/ uidelines9 no pro$ision is re6uired for Standard "ssets. .Ealse.


37/51

8' "s per S* "ct 2IIB9 small manufacturin enterprise is an enterprisewhere the in$estment in plant and machinery is more than &s 2A la,h #utdos not eceed &s A crore. . rue.

:' Eair practices code pro$ides uidance and is not compulsory for the #an,sin ndia. . Ealse.

UNIT : Ana$s"s o! F"nanc"a (tatements

(tate True or Fase*

1. 0ompanies "ct has prescri#ed the format of the #alance sheet. . rue.

2. Eormat for ! J % account for #an,in companies is prescri#ed #y the/an,in &eulation "ct. . rue.

3. "s per 0ompanies "ct9 shortterm holdin of +nancial securities has to #eshown %inder in$estments. . rue.

4. he furniture a$aila#le in a furniture shop is classi+ed under Eied "ssets.. Ealse.

A. Eor the purpose of analysis9 installments of term loan9 due within one year9is classi+ed under current assets. . rue.

B. /an,s reduce the amount of intani#le assets from the Net Worth for thepurpose of analysis of +nancial statements. . rue.

. he chane in the method of in$entory $aluation does not a7ect the pro+tin an accountin year. . Ealse.

F. he method of ratio analysis is the #est method of +nancial analysis9 as itdoes not su7er from any de+ciency. . Ealse.

D. *e#t; 6uity ratio (* &) is a ratio of total outside lia#ility to the net worthof an enterprise. . Ealse.

1I. nterest 0o$erae &atio ( 0 &) is calculated #y di$idin / (earnins#efore interest and ta) #y total interest on lon term #orrowins . rue.

11. * S 0 & indicates the a#ility of an enterprise to ser$ice interest andinstallments. . rue.

12. 0ontinent lia#ilities of an enterprise do not a7ect the +nancial analysis.. Ealse.

13. Eunds


38/51

Un"t < - 0O+HIN CAPITAL FINANCE

1' Net Wor,in 0apital (N W 0) means

he choices are;

(a) otal current assets minus #an, +nance

(#) otal current assets minus credit from suppliers

(c) otal current assets minus total current lia#ilities

(d) Short term sources #rouht in #y the promoters

he correct choice is; c/ Tota current assets m"nus tota current"a4""t"es

2. Which of the followin statements is not true for eHcient in$entory manaementK

he choices are;(a) t results in reduction in in$entory

(#) t reduces the wor,in capital re6uirements of the enterprise

(c) t reduces the N W 0 a$aila#le with the enterprise

(d) t increases the n$entory urno$er &atio if the le$el of salesremains same.

he correct choice is; c/ It reduces the N 0 C a5a"a4e ,"th theenter%r"se

3. Which of the followin is not a source for meetin wor,in capitalre6uirementsK

he choices are;

(a) Suppliers' credit

(#) /an, +nance

(c) 8ther current lia#ilities

(d) "d$ance payment to suppliers

he correct choice is; d/ Ad5ance %a$ment to su%%"ers

(4) Which of the followin is a li6uidity ratioK

he choices are;

(a) =uic, ratio

(#) 8 % U N W

(c) * S 0 &


39/51

(d) 8ther current lia#ilities

he correct choice is; a/ &u"ck rat"o

(A) Which of the followin is not correct reardin 0urrent &atioK

he choices are;(a) Eor same le$el of current assets9 increase in N W 0 results in increased

current ratio.

(#) he current ratio can #e less than one

(c) he current ratio can #e neati$e

(d) 0urrent ratio is an indicator of li6uidity

he correct choice is; c/ The current rat"o can 4e negat"5e

(B) he commercial paper can #e issued #y

he choices are;

(a) 0orporates

(#) 0orporates and partnership +rms

(c) "ny #usiness entity

(d) None of the a#o$e

he correct choice is; a/ Cor%orates

() Which of the followin is not correct reardin EorfaitinK he choices are;

(a) t a form of wor,in capital +nance

(#) t is used in eport +nance

(c) t is with recourse to the drawer of the #ill

(d) nder this +nancier discounts the #ills drawn on #uyer.

he correct choice is; c/ It "s ,"th recourse to the dra,er o! the 4"'

(F) Which of the followin is correct reardin %etters of 0redit. he choices are;

(a) hese are opened #y a #an, for eport sales #y the client

(#) hese are opened #y a #an, for local sales #y the client

(c) %etters of 0redit do not carry much ris, for the openin #an,


40/51

(d) %etters of 0redit are opened #y a #an, for purchase of oods #y the client

he correct choice is; d/ Letters o! Cred"t are o%ened 4$ a 4ank !or %urchase

o! goods 4$ the c"ent'

(D) nder urno$er method of assessment9 the limit is sanctioned at per cent of the

pro-ected turno$er. he choices are;

(a) 2A (#) 2I (c) 3I (d) 3A

he correct choice is; 4/ ?

(1I) 0ash #udet method of assessment is more suita#le for those #usiness

enterprises which ha$e . he choices are;

(a) uniform le$el of operations

(#) @ih le$el of operations

(c) %ow le$el of operations

(d) Seasonal operations

he correct choice is; d/ (easona o%erat"ons'

UNIT > Term Loans

1' " * G ! is issued #y the #an, for 9 #y its client. he choices are

(a) Sale of oods

(#) !urchase of oods

(c) Sale of capital oods

(d) !urchase of capital oods

he correct choice is d/ Purchase o! ca%"ta goods

' Which of the followin statements is not true for an infrastructure pro-ectK

he choices are

(a) t has lon estation period

(#) t reduces the ris, for the lender as his funds et assured deployment for

a lon time.


41/51

(c) he de#t e6uity ratio is normally hih for an infrastructure pro-ect

(d) he implementation period is usually lon

he correct choice is 4/ It reduces the r"sk !or the ender as h"s !undsget assured de%o$ment !or a ong t"me'

.' Which of the followin is not a source of funds for meetin the cost of +ed assets #y an enterpriseK

he choices are

(a) 0redit #y supplier of assets

(#) nternal accruals

(c) *e#entures

(d) * ! G

he correct choice is d/ DP

3' Which of the followin is ratio9 indicati$e of the repayin capacity of a#orrowerK

he choices are

(a) =uic, ratio

(#) 8 %U N W

(c) * S 0 &

(d) * &

he correct choice is c/ D ( C +

7' Which of the followin is not correct reardin term loans #y the #an,sK

he choices are

(a) "sset lia#ility matchin is an important consideration in term +nancin

(#) nstallment of term loan9 paya#le within one year is considered as current

lia#ility

(c) &epayment of a term loan can #e in e6uated monthly instalments

(d) 0urrent ratio is the most important ratio in appraisal of a term loan

he correct choice is d/ Current rat"o "s the most "m%ortant rat"o "na%%ra"sa o! a term oan

8' !ro-ect loans can #e i$en #y the #an, to


42/51

he choices are

(a) 8nly corporates

(#) 8nly corporates and partnership +rms

(c) 8nly corporate9 partnership +rms and societies

(d) "ny #usiness entity

he correct choice is d/ An$ 4us"ness ent"t$

:' Which of the followin is not correct reardin infrastructure pro-ect #ythe #an,sK

he choices are

(a) /an,s are allowed to funds promoters' e6uity in certain circumstances

(#) posure norms are relaed #y & /

(c) "sset lia#ility mismatch has #een permitted #y & /

(d) * E 0 pro$ides li6uidity support to #an,s

he correct choice is c/ Asset "a4""t$ m"smatch has 4een %erm"tted4$ + I


43/51

(2) he date of eecution of documents can #e earlier than the date of stampin. .Ealse.

(3) he parties eecutin the documents should ha$e the necessaryauthority and the capacity to enter into a contract and eecute thedocuments in that capacity. . rue.

(4) /an, should ensure that the person sinin the documents is doin sowith his free will. . rue.

(A) he documents can #e +lled in after these are sined. .Ealse.

(B) n case of companies9 the chare should #e reistered with &80 within BIdays from the date of eecution of the documents. .Ealse.

() Some documents may #e re6uired to #e reistered with the su#reistrar.. rue.

(F) hird party uarantees can #e ta,en from indi$iduals only. "ny other lealentity can not #e third party uarantor. .Ealse.

(D) /an, can create chare o$er security not #elonin to either the#orrower or the uarantor. .Ealse.

(1I) nder '@ypothecation'9 the possession of oods remains with the#orrower. . rue.

(11) nder '!lede'9 the possession of oods may remain with the #orrowerdependin on #an,'s decision. . rue.

(12) "s per &/ uidelines9 in the case of #orrowers en-oyin wor,in capitalcredit limits of &s. 1I crore and a#o$e from the #an,in system9 the loancomponent should normally #e FI per cent. . rue.

(13) nder '%oan system'9 the #orrower has to maintain a minimum de#it#alance in his loan account9 while the cash credit account may ha$e a credit#alance. . rue.

(14) /an,s dis#urse the term loans as per the proress of the pro-ect . rue.

(1A) 0onsortium #an,in and ultiple #an,in are same. .Ealse.

(1B) &/ encouraes ultiple or 0onsortium #an,in for small loans. . Ealse.

555555555555555555555555555555555555555555555555555555555555555555555555555555


44/51

UNIT .1 Cred"t Contro and Mon"tor"ng

1' 0h"ch o! the !oo,"ng "s not a %ur%ose o! cred"t mon"tor"ng6 hechoices are;

(a) o ensure end use of the funds #y the #orrower

(#) o detect any deterioration in the security chared to the #an,

(c) o comply with the uidelines of the &/

(d) o ascertain that the #usiness continues to run on the pro-ected lines

he correct choice is.. c/ To com%$ ,"th the gu"de"nes o! the +I

' 0h"ch o! the !oo,"ng "s not a too a5a"a4e to check the 4ank !or cred"t mon"tor"ng6

he choices are;

(a) Sendin reular reminders to the #orrower

(#) !eriodic $isits to the #usiness place for inspection

(c) "nalysis of +nancial statements

(d) amine conduct of #orrower's account

he correct choice is.. a/ (end"ng reguar rem"nders to the 4orro,er

.' 0h"ch o! the !oo,"ng "s not a method !or detect"ng ,rongment"on o! "n5entor$ "n a stock statement6 he choices are;

(a) Stoc, audit

(#) nspection of stoc,s

(c) "nalysis of +nancial statements

(d) 0rosschec, from the #alance sheet +ure

he correct choice is c/ Ana$s"s o! )nanc"a statements

3' 0h"ch o! the !oo,"ng "s not a method !or detect"ng ,rongment"on o! rece"5a4es "n stock statement su4m"tted 4$ the4orro,er6 he choices are;

(a) "nalysis of +nancial statements

(#) 0ross chec, from the #alance sheet +ure

(c) &ecei$a#les audit


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(d) nspection of #oo,s of account

he correct choice is.. a/ Ana$s"s o! )nanc"a statements

7' 0h"ch o! the !oo,"ng "s not a danger s"gn a4out the d"rect"on o! 4us"ness o! the 4orro,er6 he choices are;

(a) *e$ol$ement of % 0s9 in$ocation of /an, Guarantees

(#) *emand for hiher limit

(c) *elays in su#mission of stoc,Urecei$a#les statements

(d) &eturn of che6ues or #ills

he correct choice is.. d/ +eturn o! che@ues or 4"s

8' 0h"ch o! the !oo,"ng "s not an unsat"s!actor$ s"gn "n conduct o!

the account o! the 4orro,er6 he choices are;(a) *elay in payment of interest or instalments9

(#) routin of transactions with some other #an,

(c) Ere6uent o$er drawins

(d) @ih turno$er

he correct choice is d/ G"gh turno5er

:' 0h"ch o! the !oo,"ng "s not the %ur%ose cred"t aud"t6 he choices

are;(a) mpro$ement in the 6uality of credit portfolio

(#) &e$iew sanction process and compliance status of lare loans

(c) Eeed#ac, on reulatory compliance

(d) Stoc, inspection

he correct choice is d/ (tock "ns%ect"on


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(d) o safeuard the securities chared to the #an,

he correct choice is a/ To kee% a ta4 on the "m%ortant dec"s"ons o! the

4oard

555555555555555555555555555555555555555555555555555555555555555555555555555555555555

UNIT . +"sk Management and Cred"t +at"ng

1' 0h"ch o! the Foo,"ng +I(H not a r"sk ment"oned "n the ase IIAccord

he choices are

(a) 8perational ris,

(#) ar,et ris,

(c) *efault ris,

(d) 0redit ris,

he correct choice is c/ De!aut r"sk'

' 0h"ch o! the !oo,"ng "s not a cred"t r"sk6 he choices are

(a) nwillinness of a customer to meet his commitment relatin to a

+nancial transaction with the #an,

(#) na#ility of the customer to reim#urse the #an, in case of in$ocation of a

uarantee or de$ol$ement of an %.0

(c) na#ility of a customer to meet his commitment relatin to a +nancial

transaction with the #an,

(d) %oss to the #an, due to fraud

he correct choice is d/ Loss to the 4ank due to !raud

.' 0h"ch o! the !oo,"ng "s an e;terna !actor aBect"ng cred"t r"sk6 he choices are

(a) Go$ernment policies

(#) Eaulty loan and repayment structurin

(c) 8$ereposure (concentration) of credit to a particular sement


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(d) %ac, of an eHcient reco$ery machinery

he correct choice is a/ o5ernment %o"c"es

3' 0h"ch o! the !oo,"ng "s not an "nterna !actor aBect"ng cred"tr"sk6

he choices are

(a) cessi$e lendin to cyclical industries

(#) %ow 6uality of credit appraisal and monitorin

(c) *e+ciencies in the loan policy of the #an,

(d) !rotectionist policies of other countries

he correct choice is d/ Protect"on"st %o"c"es o! other countr"es

7' 0h"ch o! the !oo,"ng "s not a macro e5e act"on !or m"t"gat"on o! cred"t r"sk6

he choices are

(a) !eriodically re$iews of the eposure norms for sinle and roup #orrowers

(#) mpro$in appraisal standards of credit proposals

(c) Ere6uent re$iews of norms and +in internal limits for areate

commitments to speci+c sectors of the industry or #usiness

(d) !eriodic re$iew of total credit portfolio #ased on 6uality parameters

he correct choice is 4/ Im%ro5"ng a%%ra"sa standards o! cred"t%ro%osas

8' 0h"ch o! the !oo,"ng "s not a m"cro e5e act"on !or m"t"gat"on o! cred"t r"sk6

he choices are

(a) mpro$in sanctionin and deli$erin process

(#) 8#tention of collateral security

(c) onitorin and re$iew of indi$idual proposalsUcateories of proposals(d) !eriodical re$iews of the eposure limits for #usiness or industry sement

he correct choice is d/ Per"od"ca re5"e,s o! the e;%osure "m"ts !or4us"ness or "ndustr$ segment

:' 0h"ch o! the !oo,"ng statements "s not true regard"ng cred"tder"5at"5es %roducts6


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he choices are

(a) hese are used to hede credit ris, to the #an,

(#) he protection #uyer is the lendin #an,

(c) he protection seller can #e another #an, or any other oraniation

(d) he credit asset is transferred in case of deri$ati$es

he correct choice is d/ The cred"t asset "s trans!erred "n case o! der"5at"5es'


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(#) Eoundation nternal &atin /ased ( & /) approach

(c) "d$anced nternal &atin /ased ( & /) approach

(d) Simpli+ed nternal &atin /ased ( & /) approach

he correct choice is d/ ("m%")ed Interna +at"ng ased I + /a%%roach

1' 0h"ch o! the !oo,"ng statements "s true regard"ng(tandard"=ed a%%roach6

he choices are; (a) t has already #een adopted #y all the #an,s

(#) t has #een adopted only the forein #an,s operatin in ndia.

(c) t has #een adopted #y the forein #an,s operatin in ndia and some of

the ndian #an,s

(d) t has to #e adopted #y the all the #an,s #y arch 2I1I

he correct choice is a/ It has aread$ 4een ado%ted 4$ a the4anks

1.' + I has suggested ,h"ch o! the !oo,"ng ear"est date o! mak"ng a%%"cat"on 4$ 4anks to + I regard"ng "m%ementat"on o! the ad5anced a%%roaches Foundat"on as ,e as I + / he choicesare

(a) 19 "pril 2I12

(#) 19 "pril 2I13

(c) 19 "pril 2I14

(d) 19 "pril 2I1A

he correct choice is a/ 1# A%r" ?1

55555555555555555555555555555555555555555555555555555555555555555555555555555555

UNIT .. - +eha4""tat"on and +eco5er$

(tate true or Fase*

1' n the case of fund #ased lendin9 credit default means that principalUandor interest amount may not #e repaid as per the terms of repayment. rue.

' n the case of uarantees or letters of credit9 credit default meanscrystalliation of the lia#ility. Ealse.


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.' "s per & / directi$es9 #an,s in ndia ha$e to classify their assets into!erformin ( standard ) assets or Non performin assets(N ! "s). N ! "s arefurther classi+ed into Su#standard9 dou#tful and loss assets rue.

3' he amount of pro$ision re6uired to #e made on the asset portfolio of a#an, depends on the classi+cation of assets. rue.

7' No pro$ision is re6uired to #e made #y a #an, on its Standard "ssets. Ealse.

8' he default due to the reasons #eyond the control of the #orrower9 isreferred to as wilful default. Ealse.

:' he default in payment as per areed terms could #e intentional or due tothe reasons #eyond the control of the #orrower. rue.


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(d) o increase #an,'s ad$ances

he correct answer is a/ To make the o%erat"ons o! the enter%r"se 5"a4e

aga"n

1>' /an,s enter into compromise with #orrowers in case of default9 #ecause;

he choices are;

(a) &eco$ery throuh leal action is time consumin

(#) "de6uate security is not a$aila#le

(c) &ealiation or security may #e diHcult

(d) "ll the a#o$e

he correct answer is d/ A the a4o5e

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