1. Select the correct statement /statements regarding ‘numeraire’ from the given list:
i. It is a monetary unit for denominating international exchange on a common basis.
ii. Today the special Drawing Rights (SDRs) of the IMF is accepted as the standard numeraire in the world.
(a) Only I
(b) Only ii
(c) Both i and ii
(d) Neither i and ii

2. Select the correct situation of voting and non-voting shares in India:
(a) Voting shares are the equity shares of a company, which have voting rights. They have higher dividend than the non-voting shares, too.
(b) Non-voting shares have no voting power at the general meeting of a company also get lower-dividend than the voting shares.
(c) Non-voting shares may be given 20% higher dividend than the voting shares by a company.
(d) Voting shares may be given 20% higher dividend than the voting shares by a company.

3. ‘Sensitive sector’ as defined by RBI includes(s)-
(a) Capital Market
(b) Real Estate
(c) Commodities
(d) All of the above

4. Select the incorrect statement/statements about the co-operative banks in India from given choices:
i. Co-operative banks are small sized units organized in the cooperative sector, which operate both in urban and non-urban centers.
ii. They are regulated by RBI, Banking Regulation Act, 1949 and Banking laws (Co-operative societies) Act, 1965.
(a) Only I
(b) Only ii
(c) Both i and ii
(d) Neither i and ii

5. Select the incorrect statement /statements related to the national income accounting of the economy:
i. An economy may have its NDP and GDP of the same value.
ii. None of the developing economies had their NDPs and GDPs of the same values for any year.
iii. Few developing economies have been able to have their NDPs and GDPs of the same values but at the purchasing power parity(PPP) only.
(a) i and ii
(b) ii and iii
(c) i and iii
(d) i, ii and iii

6. What is correct about the headline inflation of India? Select the answer given below:
i. It is measured at the wholesale as well as consumer prices.
ii. We see enough diversities among the Indian consumers; that is why we have four variants of the inflation index at the consumer prices.
iii.The concept was first forwarded by Mr.C.Rangarajan in the late 1980s.
(a) Only i
(b) i and ii
(c) Only iii
(d) None of these

7. When the Government starts repurchasing its bonds from the public before their maturity period, it means
(a) The Government is promoting an ‘expansionist’ monetary policy
(b) The Government is trying to increase the saving rate of the economy
(c) The Government is trying to check the rising inflation
(d) The Government is trying to promote more credit creation by the banks

8. Which of the following countries has registered top source of foreign direct investment (FDI) into India in 2014-15?
(a) Singapore
(b) Mauritius
(c) China
(d) USA

9. Select the correct statement related to the “Ambedkar Hasthilip Vikas Yojana”:
(a) A scheme of Government of India to promote handicrafts among the rural women of India belonging to the Schedule Cast category
(b) A scheme to promote tribal handicrafts.
(c) A scheme of the Government of Maharashtra to promote handicrafts among the Mahar women of the state.
(d) A scheme of Government of UP to promote women empowerment in the state through handicrafts.

10. Match List-1 with List-2 and select the correct answer using the code given below:
List-1 List-2
1. Core inflation A. Profit calculation after adjusting inflation
2. Inflation B. upward pull Premium of prices and wages by each other.
3. Inflation C. inflation excluding Accounting manufactured items.
4. Inflation spiral D. The bonus brought by inflation to borrowers.

(a) 1 2 3 4
(b) 3 4 1 2
(c) 2 1 4 3
(d) 4 3 2 1

11. What is the basic difference between bank and a non-bank?
(a) While banks allow withdrawal of money from savings accounts, a non-bank does not allow the opening of a saving account.
(b) Current account could be opened in non-banks.
(c) While banks are regulated by the RBI, non-banks are directly regulated by the Ministry of Finance.
(d) All limited companies in India are entitled to set up non-banking institutions.

12. Which one of the following statements regarding ‘financial literacy’ is not true?
(a) Its objective is to make people aware of the risks and rewards of investments so that they can make an informed choice.
(b) India has a formal nationwide structured financial education programme.
(c) This would enhance the effectiveness and integrity of financial markets.
(d) It reduces the government burden in protecting the common person from elements of market failure.

13. Consider the following about Capital Adequacy Ratio:
1. It is the ratio of the total deposits of a bank to its non-performing assets.
2. It is the ratio of the total capital of a bank to its non-performing assets.
3. It is the ratio of the total capital of a bank to its risk-weighted assets.
4. It is the ratio which ensures strength and stability of a bank.
Select the correct answer using the codes given below:
(a) 2 and 4 only
(b) 3 and 4 only
(c) 1 and 3 only
(d) 1, 3 and 4 only

14. The percentage contribution of indirect taxes to India’s GDP is close to:
(a) 5.5 percent
(b) 4.5 percent
(c) 7.5 percent
(d) 9 percent

15. Laffer Curve is a curve which establishes relationship between
(a) Tax concessions and tax revenue.
(b) Expenditure incurred for collecting taxes and revenue collected from taxes
(c) Revenue collected from direct taxes vis-à-vis indirect taxes
(d) Tax rates and tax revenues