Check Your Progress
MODULE A
UNIT-1
Fundamentals of Economics, Microeconomics and Macroeconomics and Types of
Economics
The choices are:
1. Study of welfare
2. Study of 'means' and 'ends'
3. Study of Wealth
4. None of these
Right Answer: (3) Study of Wealth
Question 2. Macroeconomics deals with;
The choices are:
(1) Gross domestic product
(2) Unemployment rate
(3) Price indices
(4) All the above
Right Answer: (4) All the above.
Question 3. Who is considered as the
founder of the field of Microeconomics?
The choices are:
(1) Lionel Robbins
(2) Amartya Sen.
(3) Adam Smith
(4) Prof. Alfred Marshall
Right Answer: (3) Adam Smith
Question 4. Microeconomics is
concerned with the behaviour of
The choices are:
(1) Gross domestic product
(2) Individual entities
(3) Economy as a whole
(4) None of the above
Right Answer: (2) Individual entities.
Question 5. Ends refer to
The choices are:
(1) Demand
(2) Resources
(3)
Utility
(4) Wants
Right Answer: (4) Wants
Question 6. A market economy is one
The choices are:
(1) In which individuals and private firms
make the major decisions about production and consumption.
(2) In which the government makes all
important decisions about production and distribution.
(3) Both (1) and (2)
(4) None of these
Right
Answer: (1) In which individuals and private firms make the major decisions about
production and consumption.
Question
7. India is a
The choices are:
(1)Capitalistic Economy
(2) Socialistic Economy
(3) Mixed Economy
(4) Laissez-faire economy
Right
Answer: (3) Mixed Economy
Question 8. Laissez-faire economy is
The choices are:
(1) The extreme case of a market Economy
(2) The extreme case of a Command Economy
(3) The extreme case of a mixed Economy
(4) None of these
Right Answer: (1) The extreme case of
a market Economy
Question
9. Market economy is also known as
The
choices are:
(1) Mixed Economy
(2) Capitalistic Economy
(3) Command Economy
(4) Socialistic Economy
Right Answer: (2) Capitalistic Economy
Question10. Which of the following is
Capitalistic Economy?
The choices are:
(1) England
(2) China
(3) India
(4) None of the above
Right
Answer: (1) England
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Unit-2 Supply and Demand
Pick
the correct Answer
Question1.
Demand Schedule is the
The
choices are:
(1) Relationship between demand and
quantity bought
(2) Relationship between price and quantity
bought
(3) Relationship between price and demand
(4) None of these
Right
Answer: (2) Relationship between price and quantity bought
Question
2.Market Demand Curve obeys the
The
choices are:
(1) Law of downward-sloping demand
(2) Law of upward-sloping demand
(3) Law of diminishing
(4) None of these
Right
Answer: (1) Law of downward-sloping demand
Question
3. Forces behind the demand curve
The
choices are:
(1) Expectation about future economic conditions
(2) Average Income
(3) Cost of production
(4) Both (1) and (2)
Right
Answer: (4) Both (1) and (2)
Question
4. A down ward Sloping Demand Curve relates quantity demanded to
The
choices are:
(1) Supply
(2) Income
(3) Price
(4) Demand
Right
Answer: (3) Price
Question
5. Shifts in Supply means
The
choices are:
(1) When changes in factors other than
goods own price affect the quantity supplied.
(2) When changes in goods own price affect
the quantity supplied.
(3) Both (1) and (2)
(4) None of these
Right
Answer: (1) When changes in factors other than goods own price affect the
quantity supplied.
Question
6. The Equilibrium Price is also know as
The
choices are:
(1) Market price
(2) Optimum price
(3) Real price
(4) Market-clearing price
Right
Answer: (4)
Market-clearing price
Question
7. Forces behind the Supply Curve
The
choices are:
(1) Cost of production
(2) Technological advances
(3) Government policies
(4) All of the above
Right
Answer: (4) All of the above
8.
Supply curve relates quantity supplied to
The
Choices are:
(1) Supply
(2) Income
(3) Price
(4) Demand
Right
Answer: (3) Price
Question
9. Market equilibrium comes at the price at which quantity demanded equals to
quantity
The
choices are:
(1)
Produced
(2) Supplied
(3) Inventory
(4) Demand
Right
Answer: (2) Supplied
Unit-3 Money Supply and Inflation
Tick
the Correct Answer
Question 1. Money Supply
refers to
The choices are:
(1) The amount of
money in banks
(2) The amount of
money with the people
(3) The amount of
money in circulation in an economy
(4)None of the
above.
Right Answer: (3) The amount of money
in circulation in an economy
Question 2. Narrow Money consists of
The choices are:
(1) Currency with
the Public, Demand Deposits, 'Other 'Deposits with the RBI
(2) Currency with
the Public, Time Deposits, `Other' Deposits
(3) Time deposits,
Demand Deposits, 'Other' Deposits with the RBI
(4) Currency with
the Public, Demand Deposits
Right Answer: (1)
Currency with the Public, Demand Deposits, 'Other 'Deposits with the RBI
Question 3. Time
Deposits are
The choices are:
(1) Paid on demand
(2) Not paid on
demand
(3) Relatively less
liquid than cash and demand deposits
(4)Both (1) and (2)
Right Answer: (4)
Both (1) and (2)
Question4. Demand Deposits are
The choices are:
(1) Paid on demand
(2) Not paid on
demand
(3) Relatively less
liquid than cash and demand deposits
(4) Both (1) and (2)
Right Answer: (1) Paid on demand
Question 5. Which of the following
statements is true about ‘Inflation?’
The choices are:
(1) A rise in the
general level of prices
(2) Leads to fall
in purchasing power
(3) Both (1) and (2)
(4) None of the
above
Right Answer: (3) Both (1) and (2)
Question 6. Price Index used in India
The choices are:
(1) Consumer price index
(2) GDP deflator
(3) Wholesale price
index
(4) Retail price
index
Right Answer: (3) Wholesale price
index
Question 7. Consumer
price index measures prices at
The choices are:
(1) Wholesale level
(2) Retail level
(3) Producer level
(4) Consumer level
Right Answer: (2)
Retail level
************************************************************************
UNIT
4 -THEORY OF INTEREST
Tick the Correct Answer
Question1. Pick odd man out:
The choices are:
(1) Rent
(2) Interest
(3) Wages
(4) Money
Right
Answer: (4) Money
Question 2. According to J.M.Keynes rate of
interest and bond prices are related
The Choices are:
(1) Inversely
(2) Directly
(3) Parallel
(4)Horizontal
Right
Answer: (1) Inversely
Question 3. Keynes explained interest in terms
of
The choices are:
(1) Real forces
(2) Economic forces
(3) Monetary forces
(4) Social forces
Right
Answer: (3) Monetary forces
Question 4. The initials LM stand for
The choices are:
(1) Liquidity Model
(2) Liquidity preference and Money supply
equilibrium
(3) Liquidity and Money Model
(4) Liquidity and money
Right
Answer: (2) Liquidity preference and Money supply equilibrium
Question 5. I S curve is derived from
The choices are:
(1) Classical
theory.
(2)
Keynesian liquidity preference theory of interest
(3) Law of diminishing marginal utility
(4) Law of equimarginal utility
Results:
(1) Classical theory.
Question6. LM curve is derived from
The choices are:
(1) Classical theory
(2) Keynesian liquidity preference theory of
interest
(3) Law of diminishing marginal utility
(4) Law of equimarginal utility
Right
Answer: (2) Keynesian liquidity preference theory of interest
*********************************************************************
UNIT-5 Business Cycles
Tick
the Correct Answer:
Question1.Business
Cycle is also known as
The
choices are:
(1) Entrepreneur cycle
(2) Economic cycle
(3) Vicious circle
(4) None of the poverty
Right
Answer: (2) Economic cycle
Question
2. Pick odd man out
The
choices are:
(1) Boom
(2) Depression
(3) Slowdown
(4) Recovery
Right
Answer: (3) Slowdown
Question.
3 Underemployment of both men and materials
is a characteristic of which phase?
The
choices are:
(1) Depression
(2) Boom
(3) Recovery
(4) Recession
Right
Answer: (1)
Depression
Question
4. Which phase of the business cycle s also known as the crisis?
The
choices are:
(1) Boom
(2) Depression
(3) Recovery
(4) Recession
Right
Answer: (4) Recession
**************************************************************************
UNIT 6- Indian Economy and Various Sectors of the Economy
Tick
the Correct Answer.
Question
1. The average growth rate of Indian economy over a period of 25 years since
1980-81was about
The
choices are:
(1) 3 to 4 per cent
(2) 6
per cent
(3) 9 per cent
Right
Answer: (2) 6 per cent
Question
2. What sector is called as Primary Sector in India
The choices
are:
(1) Industrial Sector
(2) Service Sector
(3) External Sector
(4) Agricultural Sector
Right
Answer: (4)
Agricultural Sector
Question
3. CSO classifies the Industrial Sector in to how many segments?
The
choices are:
(1) Three
(2) Four
(3) Six
(4) Two
Right
Answer: (1) Three
Question
4. MSE means
The
Choices are:
(1) Medium and Small Enterprises
(2) Micro and Small Enterprises
(3) Medium
State
(4) None of the above.
Right
Answer: (2) Micro and Small Enterprises
Question
5. Service Sector is also called as
The
Choices are:
(1)Primary Sector
(2) Secondary Sector
(3) Tertiary Sector
(4) None of the above
Right
Answer: (3) Tertiary Sector
Question
6. The share of services in the national income from the last 10 years is
The
choices are:
(1) decreasing
(2) Constant
(3) Increasing
(4)Nominal
Right
Answer: (3) Increasing
***************************************************************************
UNIT 7- Economic Reforms
Tick the Correct Answer.
Question 1. Reforms were started in
The choices are:
(1) 1981
(2) 1991
(3) 1971
(4) 1995
Right Answer: (2) 1991
Question 2. Twin economic imbalances
existed during 1990
The choices are:
(1) Fiscal crisis
and external payment crisis
(2) Fiscal and
monetary crisis
(3) Monetary and
external payment crisis
(4) None of the
above
Right Answer: (1) fiscal crisis and external payment crisis
Question3. Real Sector Policy means focus on x x x in the early stages
of reform process.
The choices are:
(1) Mining and
quarrying
(2) Electricity
(3) Manufacturing
sector
(4) None of the
above
Right Answer: (3) Manufacturing sector
Question4. Expand I T E S.
The choices are:
(1) Information
Technology and Electronic Services
(2) Information
Technology and Enabled Services
(3) Information Technology
and Efficient Services
(4) None of the
above
Right Answer: (2) Information
Technology and Enabled Services.
Question 5. Expand W M A
(1) Wealth and
Means Advances
(2) Wealth and
Monetary Advances
(3) Ways and
Monetary Advances
(4) Ways and Means
Advances.
Right Answer: (4) Ways and Means
Advances.
Question6. EXPAND N E F T.
The choices are:
(1) Nominal
Electronic Funds Transfer
(2) National
Electronic Funds Transfer
(3) National
Electronic Funds Transformation
(4) None of the
above
Right Answer: (2) National Electronic
Funds Transfer
*****************************************************************************
UNIT 8 – Monetary Policy and Fiscal Policy
Tick
the Correct Answer
Question
1. Bank rate is also referred to as
The
choices are:
(1) Discount rate
(2) Subsidy rate
(3) Marginal rate
(4) None of the above
Right
Answer: (1) Discount rate
Question
2. Expand C R R
The
choices are:
(1) Credit Reference Rate
(2) Credit Reserve Ratio
(3) Cash Reserve Ratio
(4) Cash Reserve Rate
Right
Answer: (3) Cash Reserve Ratio
Question3.
Expand S L R
(1) Statutory Leverage Ratio
(2) Statutory Liquidity Ratio
(3) Statutory Liquidity Rate
(4) Static Liquidity Ratio
Right
Answer: (2) Statutory Liquidity Ratio
Question4.
Expand O M O
(1) Open Market Operations
(2) Open Market Organization
(3) Open Monetary Operations
(4) None of the above
Right
Answer: (1) Open Market Operations
Question5.
Expand F R B M Act
The
choices are:
(1) Fiscal Responsibility and Business
Management Act
(2) Fiscal Role and Budget Management Act
(3) Fiscal Role and Business Management Act
(4) Fiscal Responsibility and Budget
Management Act
Right
Answer: (4) Fiscal Responsibility and Budget Management Act
Question
6. F R B M Act enacted in
The
choices are:
(1) 2001 (2) 2003 (3) 2004 (4) 2000
Right
Answer: (2)
2003
***********************************************************************
UNIT 9 -GDP Concepts
Tick
the Correct Answer
Question1.Personal Consumption
expenditure on households divided into;
The choices are:
(1) Durable goods
(2) Non-durable
goods
(3) Services
(4) All of the
above
Right Answer: (4) All of the above
Question 2. Factors of Production are:
The choices are:
(1) Land, Labour
and Capital
(2) Assets,
Machineries and Money
(3) Land, Labour,
Capital and Entrepreneur
(4) None of the
above.
Right Answer: (3) Land, Labour,
Capital and Entrepreneur
Question 3. Market Price is the x x x
price for which goods or service is offered at the market place.
The choices are:
(1) Nominal Price,
(2) Economic Price (3) Marginal Price,
(4) Deficit Price.
Right Answer: (2) Economic Price
UNIT 10- Union Budget
Tick the Correct Answer
Question1. Expand N C C D
The
choices are:
(1) National Council on Crime and
Delinquency
(2) National council on Credit and
Debentures
(3) National council on Commerce and
deregulation
(4) None of the above
Right
Answer: 1) National Council on Crime and Delinquency
Question2.
Pick odd man out
The
choices are:
(1) Customs
(2) Service Tax
(3) Interest Receipts
(4) Income Tax
Right Answer: (3) Interest Receipts
Question3.
Pick odd man out
The
choices are:
(1) Securities issued against Small Savings
(2) Recoveries of Loans & Advances
(3) State Provident Funds
(4) Other Receipts
Right
Answer: (2) Recoveries of Loans & Advances
Question4.
Pick odd man out.
The
choices are:
(1) Loans to Public Enterprises
(2) Pensions
(3) Subsidies
(4) Police
Right
Answer: (1) Loans to Public Enterprises
Question
5. Net fiscal deficit is the difference between
The
choices are:
(1) gross fiscal deficit and net interest
payments
(2)
gross fiscal deficit and interest payments
(3) gross fiscal deficit and net lending
(4) None of the above
Right
Answer: (3) gross fiscal deficit and net lending
*************************************************************************
UNIT-11 Challenges Facing Indian Economy
Tick
the Correct Answer
Question
1. Pick odd man out
The
choices are:
(1) Brazil
(2) France
(3) India
(4) Russia
Right
Answer: (2) France
Qestion2.
Expand EMEs
The
choices are:
(1) External Marketing Economics
(2) Environmental Efficiency
(3) Emerging Market Economies
(4) None of the above
Right
Answer: (3) Emerging Market Economies
Question
3. Expand BPLRs
The
choices are:
(1) Benchmark
Prime Lending Rates
(2) Benchmark Prime Loan Rates
(3) Benchmark Process Lending Rates
(4)None of the above
Right
Answer: (1) Benchmark Prime Lending Rates
*****************************************************************
MODULE B
UNIT 13 – Sampling Methods
State whether
following statements are true or false.
(a) When the items
included in a sample are based on the judgement of the individual conducting the
sample, the sample is said to be non-random. True
or False
Answer: True
(b) A statistic is
a characteristic of a population. True or False
Answer: False
(c) A sampling plan
that selects members from a population at uniform intervals in time order or
space is called stratified sampling. True or False
Answer: True
(d) As a general
rule, it is not necessary to include a finite population multiplier in a
computation for standard error of the mean when the size of the sample is
greater than 50. True
or False
Answer: False
(e) The probability
distribution of all the possible means of samples is known as the sample
distribution of the mean. True
or False
Answer: True
(f)The principles
of simple random sampling are the theoretical foundation for statistical
inference. True
or False
Answer: True
(g) The standard
error of the mean is the standard deviation of the distribution of sample
means. True
or False
Answer: True
(h) A sampling plan
that divides the population into well-defined groups from which random samples
are drawn is known as cluster sampling. True or False
Answer: True
(I)
With
increasing sample size, the sampling distribution of the mean approaches
normality, regardless of the distribution of the population. True
or False
Answer: True
(j) The standard
error of the mean decreases in direct proportion to sample size. True
or False
Answer: True
(k)
To perform a complete enumeration, one would need to examine every item in a
population. Trueor False
Answer: True
(l)
In everyday life, we see many examples of infinite populations of physical
objects. True or False
Answer: False
(m) To obtain a
theoretical sampling distribution, we consider all the samples of a given size.
TrueorFalse
Answer: True
(n) Large samples
are always a good idea because they decrease the standard
error. TrueorFalse
Answer: True
(o) If the mean for
a certain population were 15, it is likely that most of the samples we could
take from that population would have means of 15. True
or False
Answer: False
(p) The standard
error of a sample statistic is the standard deviation of its sampling
distribution. True
or False
Answer: True
(q) Judgement
sampling has the disadvantage that it may lose some representative ness of a
sample. True
or False
Answer: True
(r) The sampling
fraction compares the size of a sample to the size of the
population. True
or False
Answer: True
(s) Any sampling
distribution can be totally described by its mean and
standard deviation.
TrueorFalse
Answer: True
(t) The precision
with which the sample mean can be used to estimate the population mean
decreases as the standard error increases. True or False
Answer: True
Please select the correct answer from
the choices provided‑
1. Which of the following
is a method of selecting samples from a population?
(a) Judgement
sampling (b) Random sampling
(c) Probability
sampling (d) All of these (e) (a) and
(b) but not (c)
Answer: (e) (a) and (b) but not (c)
2. Choose the pair
of symbols that best completes this sentence: —is a parameter, whereas – is a
statistic.
(a) N, g (b) (y, s
(c) N, n (d) All of these (e) (b) and (c) but
not (a)
Answer: (e) (b) and (c) but not (a)
3. In random
sampling, we can describe mathematically how objective our estimates are. Why
is this?
(a) We always know
the chance that any population element will be included in the sample
(b) Every sample
always has an equal chance of being selected
(c) All the samples
are exactly the same size and can be counted
(d)None of these
(e) (a) and (b) but not (c)
Answer: (e) (a) and (b) but not (c)
4. Suppose you are
performing stratified sampling on a particular population and have divided it
into strata of different sizes. How can you now make your sample selection?
(a) Select at
random an equal number of elements from each stratum
(b) Draw equal
numbers of elements from each stratum and weigh the results
(c) Draw numbers of
elements from each stratum proportional to their weights in the population.
(d) (a) and (b)
only
(e) (b) and (c)
only
Answer: (e) (b) and (c) only
5. In which of the
following situations would (7,, is equal to (For,rn be the correct formula to
use for computing
(a) Sampling is
from an infinite population
(b) Sampling is
from a finite population with replacement
(c) Sampling is
from a finite population without replacement
(d) (a) and (b)
only
(e) (b) and (c)
only
Answer: (d) (a) and (b) only
6. The dispersion
among sample means is , the dispersion among the sampled items themselves
because
(a) Each sample is
smaller than the population from which it is drawn
(b) Very large
values are averaged down and very small values are averaged up
(c) The sampled
items are all drawn from the same population
(d) None of these
(e) (b) and (c) but
not (a)
Answer: (b) Very large values are
averaged down and very small values are averaged up
7. Suppose that a
population with N is equal to 144 has p is equal to 24. What is the mean of the
sampling distribution of the mean for samples of size 25?
(a) 24 (b) 2
(c)4.8
(d) Cannot be
determined from the information given
Answer: (a) 24
8. The central limit theorem assures us
that the sampling distribution of the mean
(a) Is always
normal
(b) Is always
normal for large sample sizes
(c) Approaches
normality as sample size increases
(d) Appears normal
only when N is greater than 1,000
Answer: (b) Is always normal for large
sample sizes
9. Suppose that,
for a certain population, sigma xbar is calculated as 20 when samples of size
25 are taken and as 10 when samples of size 100 are taken. A quadrupling of
sample size, then, only halved sigma xbar. We can conclude that increasing sample size is
(a) Always
cost-effective (b) Sometimes cost-effective
(c) Never Cost-effective
Answer: (c) Never Cost-effective
10. For the
previous questions, what must be the value of (Y for this infinite population?
(a) 1,000 (b) 500
(c) 377.5 (d) 100
Answer: (d) 100
11. The finite
population multiplier does not have to be used when the sampling fraction is
(a) Greater than
0.05 (b) Greater than 0.50
(c) , 0.50 (d) Greater than 0.90
(e) None of these
Answer: (e) None of these
12. The standard
error of the mean for a sample size of two or more is
(a)
Always greater than the standard deviation of the population
(b) Generally
greater than the standard deviation of the population
(c) Usually , the
standard deviation of the population
(d) None of these
Answer: (c) Usually , the standard
deviation of the population
13. A border patrol
checkpoint that stops every passenger van is using
(a) Simple random
sampling (b) Systematic sampling
(c) Stratified
sampling (d) Complete enumeration
Answer: (d) Complete enumeration
14. In a normally
distributed population, the sampling distribution of the mean
(a) Is normally
distributed
(b) Has a mean
equal to the population mean
(c) Has a standard
deviation equal to the population standard deviation divided by the square root
of the sample size
(d) All of the
above
(e) Both (a) and
(b)
Answer: (d) All of the above
15. The central
limit theorem
(a) Requires some
knowledge of the frequency distribution
(b) Permits us to
use sample statistics to make inferences about population parameters
(c) Relates the
shape of a sampling distribution of the mean to the man of the sample
(d) Requires a
sample to contain fewer than 30 observations
Answer: (b) Permits us to use sample
statistics to make inferences about population parameters
17. A portion of
the elements in a population chosen for direct examination or measurement is a
___________________
Answer: Sample
I8. The proportion
of the population contained in a sample is the___________________
Answer: Sampling fraction.
19. _______________ is the process by which inferences
about a population are made from information about a sample.
Answer: Statistical inference.
20._____________ sampling should be used when each group
considered has small variation within itself but there is wide variation
between different groups.
Answer: Stratified.
2L A method of
random sampling in which elements are selected from the population at uniform
intervals is called________________ sampling.
Answer: Systematic
2 2. ___________ is the degree of accuracy with which the
sample mean can estimate the population mean.
Answer: Standard error of the mean.
23. Within a
population, groups that are similar to each other (although the groups
themselves have wide internal variation) are called ____________
Answer: Cluster.
24. A sampling
distribution of the proportion is a probability distribution of the __________
Answer: Sample proportion.
****************************************************************************
MODULE C
HRM
UNIT 20 Fundamentals of Human Resources Management
State whether the following statements are
true or false:
1. People component of an organization has
always received due attention. ---- False.
2. Industrial revolution led to the rise of
unions. ---- False
3. Management theories and approach to
people management are very closely related. ----
True.
4. Scientific Management approach is the
foundation of today's concept of Human
Resource
Management. ---- False.
5. Labour Management to Human Resource
Management is not just a quantitative expansion of the people management function
but is qualitatively different. ---- True.
6. Personnel Management and H R D are
synonymous terms. ---- False.
7. H R D and human relations movement are
not the same. ---- True.
8. H R M and H R D are unrelated to each
other. ---- False.
9. H R D is a subsystem of H R M. ----
True.
10. H R M is a subsystem of H R D. ----
False.
11. H R D and H R M are more or less same
concepts. ---- False.
State whether the following statements are
true or false:
1. The role of the H R Functionaries has undergone qualitative change.
---- True.
2. H R functionaries have total responsibilities about the management
of human resource in the organization. ---- False.
3. H R functionaries arc responsible for development of H R-related
systems. ---- True.
4. H R professionals must have qualifications in H R M. ---- True.
5. Line Managers should not meddle with the management of H R. ----
False.
6. Role of H R professionals is confined to H R activities of the
organizations hence they should not be involved in strategic planning. ----
False.
State whether the following statements are
True or False:
1. Industrial Disputes Act was the
beginning of management of people in India
2. At the time of independence, Indians
were not among the industrialists but personnel and welfare officers were visible. ---- True.
3. Labour welfare, industrial relations,
personnel administration were synonymous to Personnel Management. ---- False.
4. The Personnel Management was accepted as
a profession by 1960s. ---- True.
5. Some Indian organizations had adopted H R
M approach long time ago even when it was not talked about. ---- True
***********************************************
UNIT 21 Development of Human Resources
State whether the following statements
are True or False:
(1) Even though the focus on people management underwent change, the
systems which were developed in the past could continue and need not change.
---- False.
(2) Performance Appraisal, Training and Development are critical
elements (subsystems) in the entire Human Resource Development System of HRM.
---- True.
(3) For HR functionaries, major challenge in training is to keep the
workforce updated with current knowledge; what is not significant now can be
forgotten. ---- False.
(4) New skills can be easily blended with the old ones. ---- False.
(5) Job Analysis is the basic framework for most of the HRD systems.
---- True.
(6) Performance Appraisal is one system which has qualitatively got
modified. ---- True.
(7) Performance and Potential Appraisal systems have lot in common.
---- False.
(8) Career Planning is a motivational exercise. ---- True.
(9) When an organization develops in size and its business, it is
called organizational development. ---- False.
State whether the following statements
are True or False:
(1) Training should be given in the organization because people like to
learn new things. ---- False.
(2) Employees can learn anything that they want for their development.
---- False.
(3) Training, education and development have different meanings, they
need to be differentiated. ---- True.
(4) Pedagogy and androgogy mean the same thing. ---- False.
(5) Learning will not take place if there is no motivation. ---- True.
(6) It is better to do all the training in-house. ---- False.
(7) Training need analysis is a systematic process of looking into the
gaps between what is there and what is desired. ---- True.
(8) Training plan is a summary of all training needs identified. ----
False.
(9) The methodologies adopted in training situations are decided by the
trainer's skill. ---- False.
(10) Evaluation of training is an important step but it may not be
possible to quantify all the aspects. ---- True.
(11) Operational personnel do not need training in teaching methodology.
---- False.
(12) Primary purpose of training is learning related to present job.
---- True.
(13) The purpose of development is learning for growth and not related
to any specific job. ---- True.
State whether the following statements
are True or False:
(1) Attitude is directed towards some object about which a person has
feelings and beliefs. ---- True.
(2) Attitudes do not have any impact on the emotions of a person. ----
False.
(3) Attitudes of employees have significant impact on their work
performance. ---- True.
(4) Attitudes are formed based on facts and objective criteria. ----
False.
(5) Changing attitude is not possible for most of the people. ----
False.
(6) There are ways in which the barriers can be overcome and attitudes
can be changed. ---- True.
State whether the following statements
are True or False:
1. Organizations cannot take responsibility
of individual's career. ---- False.
2. Career Planning is not one time exercise, plans have to change.
---- True.
3. Career Planning is sequencing events for development. ---- True.
4. Career Progression is the right of the individual. ---- False.
5. Career Planning is a new concept for Indian organizations. ----
False.
6. Career Planning can become successful when the HR functionaries,
the individual and the immediate supervisor perceive this as a joint
responsibility. ---- True.
State whether the following statements
are True or False:
1. Organizational changes are not effective unless the people also
change their way of thinking accordingly. ---- True.
2. Individuals can accept only those changes that relate to the work.
---- False.
3. Organizations need to make the individual change. ---- False.
4. Self-perceptions are enough to bring about improvements. ----
False.
5. Personal efficacy is how efficiently one is doing his job. ----
False.
6. 'Locus of Control' refers to one's belief about who is responsible
for the events in one's life. ---- True.
7. People have different motivational bases. Some receive satisfaction
in achieving by themselves, some others by working in groups while some others
by exerting influence. ---- True.
8. With experience, age and hierarchy in the organization, the Child
component of the personality should be eliminated. ---- False.
9. The Adult ego state is mainly responsible for creativity, curiosity
and reactions to others. ---- False.
10. The Parent ego state mainly regulates behaviour and nurtures it.
---- True.
11. ARENA refers to the part of personality known to 'self' but not
known to others. ---- False.
12. BLIND refers to the part of personality known to self but not known
to others. ---- False.
13. CLOSED refers to the part of personality known to self but not
known to others. ---- True.
14. DARK refers to the part of personality not known to self or known
to others. ---- True.
15. Emotional Intelligence refers to being emotional. ---- False.
16. Emotional Intelligence refers to being empathetic. ---- True.
17. Emotional Intelligence refers to being self-motivated. ---- True.
18. Emotional Intelligence refers to being self- regulated. ---- True.
*****************************************************************************
UNIT 22 Human Implications of Organizations
Answer the following – True or False:
1. Type ‘A’ person feels a chronic of time
urgency. ----, True.
2. Type ‘B’ is an easy going individual.
----, True.
3. Type ‘A’ person is not achievement
oriented. ----, True.
4. Type ‘B’ person does not experience any
competitive drive in his activity. ----, False.
5. Erikson's model of personality has eight
stages. ----, True.
6. During youth, according to Erikson, one
develops a need for intimate relationship with others. ----, True.
7. There is mutuality of interest among organizational
members. ----, True.
8. Type ‘B’ person does several things at a
time. ----, False.
Answer the following — True or False:
1. Id is the foundation of the unconscious. …. True.
2. In order to create a normal personality there should be a balance
in the relationship among the id, the ego and the super ego. …. True.
3. People behaving in a forceful manner in most situations could be
described as sentimental. …. False.
4. We have an image of our own and our actions are consistent with
that image. …. True.
5. Personality is a sum total of all that a person has learnt. ….
True.
Answer the following statements in True
or False:
1. Human brain is believed to contain definite pleasurable and painful
areas. …. True.
2. Extroverts are quiet, reflective people. …. False.
3. Successful people have high tolerance for ambiguity. …. True.
4. Individuals with low self-esteem take more risk in their career. ….
False.
5. Personality job fit theory was developed by John Holland. …. True.
6. Right brain controls intuitive and creative behaviour. …. True.
7. Left brain controls analytical behaviour. …. True.
8. Right brain controls Speech and Verbal ability. …. False.
Answer the following statements in Yes
or No:
1. The term Motivation has been derived from the Latin word 'movere'
(to move). …. Yes.
2. Taylor
3. Human Relations Model is one of the early theories of Motivation. ….
Yes
4. Elton Mayo contributed to a great extent to Human Relation Model.
…. Yes
Please mention whether the following
statements are true or false:
1. There are five types of needs according to Maslow's theory. ….
True.
2. Self-esteem needs is the highest need in Maslow's Need Hierarchy.
…. False.
3. Herzberg theory is prescriptive in nature. …. True.
4. Herzberg's theory is based on two factors namely motivators and
hygiene. …. True.
State whether the following statements
are True or Falw:
1. ERG theory was developed by Alderfer.
2. There are four needs as per Achievement Motivation theory.
3. Instrumentality theory is another name for Expectancy Model.
4. There are five items in Equity theory.
5. Reinforcement theory has positive and negative reinforcements.
6. Individual's behaviour in one situation does not influence that
individual's behaviour in a similar situation.
Mention whether the following statements
are True or False:
1. The role integrates an individual with an organization. …. True.
2. Role and position are one and the same concept. …. False.
3. Each individual occupies and plays several roles. …. True.
4. Role ambiguity is caused due to personal inadequacy. …. False.
5. Intra-role conflict leads to role isolation. …. True.
6. Role set conflicts for a role occupant refers to erosion of role
due to creation of new roles and positions. …. False.
****************************************************
Unit 23 – Employees’ Feedback and Reward System
State whether the following statements
are True or False:
1. Employees' feedback is useful for the organization. …. True
2. Conducting climate surveys does not serve much purpose as employees
do not come out with their views freely. …. False.
3. The surveys have to be designed well otherwise they can be counter
productive. …. True
4. The survey questionnaire should be customized for different organizations
keeping in view the peculiarity of the organization. …. True
5. It is beneficial to take the help of a consultant for organizing a
climate survey. …. True
6. There is no need to develop a questionnaire for the organization as
they are available in the marked which can be used across the organizations. ….
False.
State whether the following statements
are True or False:
1. People do not give much importance to the compensation in the organizations.
--- False.
2. Wage, salary and remuneration all mean the same. --- False.
3. The reward linked to the performance generally improves the
motivation level of employees. ---- True.
4. It is not necessary to give market -linked wages to employees. They
may otherwise continue because of job security. ---- False.
5. Uniform wage structure helps in improving the performance. ----
False.
6. Job Evaluation is necessary as it helps in distinguishing jobs in
the level of complexity, skills required and risk involved. ---- True.
7. ‘Cafeteria’ or ‘Menu’ option of compensation refers to providing
cafeteria or canteen facilities to the employees. ---- False.
8. The compensation paid to the managerial position is generally
referred to as salary. ---- False.
************************************************
UNIT 24 - Performance Management
State whether the Following statements are
True or False:
1. Performance appraisal is not required in most of the organizations
because performance cannot be measured objectively. …. False.
2. Performance appraisal system can be widely used for employees'
development. …. True.
3. Appraisers do not devote much time on appraisal due to their busy
schedule. …. True.
4. There is no need to make the system open and transparent; it may
spoil the relations at workplace. …. False.
5. The system generally suffers from the halo effect. …. True.
6. Performance and potential appraisals are more or less the same ….
False.
7. Performance appraisal has no other use except that in case of promotions
…. False.
8. MBO process does not involve seeking participation …. False.
State whether the following statements are
True or False:
1. Giving feedback is an art; the appraiser
should avoid criticism of the person and focus on his performance. ---- True.
2. Conducting appraisal interviews is waste of
time. ---- False.
3. Even negative feedback can help an employee
to improve his performance. ---- True.
4. Counselling of low performers do not yield
any results. ---- False.
5. The main purpose of performance review is
to do mid-course correction. ---- True.
6. Counselling does not help an individual
to realize his problems and issues which are acting as a hurdle in his
performance ---- False.
***************************************************
UNIT 25 – HRM and Information Technology
Check Your Progress (A)
State whether the following statements are
True or False:
1. The information technology is relevant only to developed countries
not developing ones. …. False.
2. Information Technology is a merging of computing and communication
technology. …. True.
3. IT can effectively, substitute our present manual systems and no
other change will be required. …. False.
4. IT can be used in HRM to reduce the drudgery of accounting and
preparing salaries. …. False.
5. There is a certain loss of power in IT as no single one has
exclusive authority and access to information. …. True.
6. The positive aspect of IT is that more number of people can be
utilized for strategic decision making. …. True.
7. IT has reduced the importance of human resources in organizations.
…. False.
State whether the following statements are
True or False:
1. Database is useful only for taking decisions regarding training and
placement. …. False.
2. Decisions based on computerized data can improve the objectivity,
fairness and perceived as unbiased in decision-making. …. True.
3. Human Resource Information System (HRIS) can be used for taking
vital decisions relating to individual employees. …. True.
4. Computerized database can allow only one person to access it at a
time. …. False.
5. Confidentiality cannot be maintained in computerized data as it can
be accessed by anyone from any location. …. False.
6. Intelligence for decision making cannot be embedded into the
computerized systems. …. False.
State whether the following statements are
True or False:
1. Research orientation in HRM is not as necessary as in other
functions. …. False.
2. HR research is helpful to feel the pulse of the workforce. …. True.
3. Cost of HR Research is much higher than its perceived benefits. ….
False.
4. HR research has not been given due importance in banks. …. True.
5. To remain sensitive to internal environment, regular opinion
surveys, climate studies, etc., should be conducted. …. True.
6. People do not take interest in surveys, therefore the surveys are
useless. …. False.
7. For a better understanding of the intangible environment which is
very critical, a climate or a job satisfaction survey can provide data for
action. …. True.
State whether the following statements are
True or False:
1. Knowledge management most closely refers to capturing tacit
knowledge of people for future use. …. True.
2. Technology offers an opportunity in tailoring and designing
training intervention to suit individual learner. …. True.
3. Enables learner to study at his convenient time and place and can
have privacy. …. True.
4. Cannot simulate to real-life situation. …. False.
5. Communication technology facilitated anywhere learning. …. True.
6. Technology-driven training has made the trainers totally redundant.
…. False.
*********************************************
MODULE D
CREDIT MANAGEMENT
UNIT 26 Overview of Credit Management
Fill in the blanks with correct choice:
1. As per RBI guidelines, the turnover method of assessment should be
applied for working capital limit of up to Rs …..in case of SSI units.
(a)
One Crore (b) Two Crores (c ) Five Crores (d) Ten Crores
2. Interest rates, regulated by RBI, are applicable for credit limit
up to Rs ….. lakh.
(a) One (b) Two (c ) Five (d)
Ten
3. The total priority sector target for foreign banks, operating in
India, is …..
(a)
20% (b) 32% (c ) 40% (d) 18%
State True or False:
4. As per RBI guidelines, the assets should be classified as Standard,
Non-standard and doubtful. …. False.
5. As per RBI guidelines, no provision is required for Standard
Assets. …. False.
6. As per MSMED Act 2006, small manufacturing enterprise is an
enterprise where the investment in plant and machinery is more than Rs 25 lakh
but dos not exceed Rs 5 crore. …. True.
7. Fair practices code provides guidance and is not compulsory for the
banks in India
UNIT 27 – Analysis of Financial Statements
State True or False:
1. Companies Act has prescribed the format of
the balance sheet. …. True.
2. Format for P & L account for banking
companies is prescribed by the Banking Regulation Act. …. True.
3. As per Companies Act, short-term holding of
financial securities has to be shown Linder investments. …. True.
4. The furniture available in a furniture shop
is classified under Fixed Assets. …. False.
5. For the purpose of analysis, installments
of term loan, due within one year, is classified under current assets. …. True.
6. Banks reduce the amount of intangible
assets from the Net Worth for the purpose of analysis of financial statements.
…. True.
7. The change in the method of inventory
valuation does not affect the profit in an accounting year. …. False.
8. The method of ratio analysis is the best
method of financial analysis, as it does not suffer from any deficiency. ….
False.
9. Debt: Equity ratio (D E R) is a ratio of
total outside liability to the net worth of an enterprise. …. False.
10. Interest Coverage Ratio (I C R) is
calculated by dividing E B I T(earnings before interest and tax) by total
interest on long term borrowings …. True.
11. D S C R indicates the ability of an
enterprise to service interest and installments. …. True.
12. Contingent liabilities of an enterprise do
not affect the financial analysis. …. False.
13. Funds flow statement and the statement of
Sources and Uses of funds are the same. …. True.
14. Liquidity ratios indicate the capacity of
an enterprise to meet its short term obligations. …. True.
*******************************************************************************
Unit 28 - WORKING CAPITAL FINANCE
1. Net Working Capital (N W C) means …
The choices are:
(a)
Total current assets minus bank finance
(b)
Total current assets minus credit from suppliers
(c)
Total current assets minus total current liabilities
(d)
Short term sources brought in by the promoters
The correct choice is: (c) Total current assets minus total current liabilities
2. Which of the following statements is not
true for efficient inventory management?
The
choices are:
(a) It
results in reduction in inventory
(b) It
reduces the working capital requirements of the enterprise
(c) It
reduces the N W C available with the enterprise
(d) It
increases the Inventory Turnover Ratio if the level of sales remains same.
The correct choice is: (c) It reduces the N W C available with the enterprise
3. Which of the following is not a source for
meeting working capital requirements?
The choices are:
(a) Suppliers' credit
(b) Bank finance
(c) Other current liabilities
(d) Advance payment to suppliers
The correct choice is: (d) Advance payment to suppliers
(4) Which of the following is a liquidity
ratio?
The choices are:
(a) Quick ratio
(b) T O L / T N W
(c) D S C R
(d) Other current liabilities
The correct choice is:
(a) Quick ratio
(5) Which of the
following is not correct regarding Current Ratio?
The choices are:
(a) For same level of current assets, increase
in N W C results in increased current ratio.
(b) The current ratio can be less than one
(c) The current ratio can be negative
(d) Current ratio is an indicator of liquidity
The correct choice is:
(c) The current ratio can be negative
(6) The commercial
paper can be issued by
The choices are:
(a) Corporates
(b) Corporates and partnership firms
(c) Any business entity
(d) None of the above
The correct choice is: (a) Corporates
(7) Which of the
following is not correct regarding Forfaiting? The choices are:
(a) It a form of working capital finance
(b) It is used in export finance
(c) It is with recourse to the drawer of the
bill
(d) Under this financier discounts the bills
drawn on buyer.
The correct choice is:
(c) It is with recourse to the drawer of
the bill.
(8) Which of the following is correct
regarding Letters of Credit. The choices
are:
(a) These are opened by a bank for export
sales by the client
(b) These are opened by a bank for local sales
by the client
(c) Letters of Credit do not carry much risk
for the opening bank
(d) Letters of Credit are opened by a bank for
purchase of goods by the client
The correct choice is:
(d) Letters of Credit are opened by a
bank for purchase of goods by the client.
(9) Under Turnover method of assessment,
the limit is sanctioned at per cent of the projected turnover. The choices are:
(a) 25
(b) 20 (c) 30 (d) 35
The correct choice is: (b) 20
(10) Cash budget
method of assessment is more suitable for those business enterprises which have
…. The choices are:
(a) uniform level of operations
(b) High level of operations
(c) Low level of operations
(d) Seasonal operations
The correct choice is:
(d) Seasonal operations.
UNIT – 29 Term Loans
1. A D G P is issued by the bank for ----------, by its client.
The choices are
(a) Sale
(b) Purchase of goods
(c) Sale
(d) Purchase of capital goods
The correct choice is (d) Purchase of capital goods
2. Which of the following statements is not true for an infrastructure
project?
The choices are
(a) It has long gestation period
(b) It reduces the risk for the lender as his
funds get assured deployment for a long time.
(c) The debt equity ratio is normally high for
an infrastructure project
(d) The implementation period is usually long
The correct choice is (b) It reduces the risk for the lender as his funds get assured
deployment for a long time.
3. Which of the following is not a source of funds for meeting the
cost of fixed assets by an enterprise?
The choices are
(a) Credit by supplier of assets
(b) Internal accruals
(c) Debentures
(d) D P G
The correct choice is (d) DPG
4. Which of the following is ratio, indicative of the repaying capacity
of a borrower?
The choices are
(a) Quick ratio
(b) T O L/T N W
(c) D S C R
(d) D E R
The correct choice is (c) D S C R
5. Which of the following is not correct regarding term loans by the
banks?
The choices are
(a) Asset liability matching is an important
consideration in term financing
(b) Installment of term loan, payable within
one year is considered as current liability
(c) Repayment of a term loan can be in equated
monthly instalments
(d) Current ratio is the most important ratio
in appraisal of a term loan
The correct choice is (d) Current ratio is the most important ratio in appraisal of a term
loan
6. Project loans can be given by the bank to
The choices are
(a) Only corporates
(b) Only corporates and partnership firms
(c) Only corporate, partnership firms and
societies
(d) Any business entity
The correct choice is (d) Any business entity
7. Which of the following is not correct regarding infrastructure
project by the banks?
The choices are
(a) Banks are allowed to funds promoters'
equity in certain circumstances
(b) Exposure norms are relaxed by R B I
(c) Asset liability mismatch has been
permitted by R B I
(d) I D F C provides liquidity support to
banks
The correct choice is (c) Asset liability mismatch has been permitted by R B I
8. Which of the following statements is not correct for project
appraisal?
The choices are
(a) Examination of technical feasibility is
carried out
(b) The contribution of promoters forms a part
of economic appraisal
(c) Promoters' background is part of the
management appraisal
(d) Capacity of promoters to arrange for
additional funds, in case of contingencies, forms a part of economic appraisal.
The correct choice is (d) Capacity of promoters to arrange for
additional funds, in case of contingencies, forms a part of economic appraisal.
*****************************************************************************************
UNIT 30 – Credit Delivery
State True or False:
(1) The stamp duty on documents varies from
State to State. …. True.
(2) The date of execution of documents can be
earlier than the date of stamping. ….False.
(3) The parties executing the documents should
have the necessary authority and the capacity to enter into a contract and
execute the documents in that capacity. …. True.
(4) Bank should ensure that the person signing
the documents is doing so with his free will. …. True.
(5) The documents can be filled in after these
are signed. ….False.
(6) In case of companies, the charge should be
registered with ROC within 60 days from the date of execution of the documents.
….False.
(7) Some documents may be required to be
registered with the sub-registrar. …. True.
(8) Third party guarantees can be taken from
individuals only. Any other legal entity can not be third party guarantor.
….False.
(9) Bank can create charge over security not
belonging to either the borrower or the guarantor. ….False.
(10) Under 'Hypothecation', the possession of
goods remains with the borrower. …. True.
(11) Under 'Pledge', the possession of goods
may remain with the borrower depending on bank's decision. …. True.
(12) As per RBI guidelines, in the case of
borrowers enjoying working capital credit limits of Rs. 10 crore and above from
the banking system, the loan component should normally be 80 per cent. …. True.
(13) Under 'Loan system', the borrower has to
maintain a minimum debit balance in his loan account, while the cash credit
account may have a credit balance. …. True.
(14) Banks disburse the term loans as per the
progress of the project …. True.
(15) Consortium banking and Multiple
banking are same. ….False.
(16) RBI encourages Multiple or Consortium
banking for small loans. …. False.
******************************************************************************
UNIT 31 – Credit Control and Monitoring
1. Which of the following is not a purpose
of credit monitoring? The choices are:
(a) To ensure end use of the funds by the
borrower
(b) To detect any deterioration in the
security charged to the bank
(c) To comply with the guidelines of the RBI
(d) To ascertain that the business continues
to run on the projected lines
The correct choice
is.. (c) To comply with the guidelines of the RBI
2. Which of the following is not a tool
available to check the bank for credit monitoring?
The choices
are:
(a) Sending regular reminders to the borrower
(b) Periodic visits to the business place for
inspection
(c) Analysis of financial statements
(d) Examine conduct of borrower's account
The correct choice is.. (a)
Sending regular reminders to the borrower
3. Which of the following is not a method
for detecting wrong mention of inventory in a stock statement? The choices are:
(a) Stock audit
(b) Inspection of stocks
(c) Analysis of financial statements
(d) Cross-check from the balance sheet figure
The correct choice is (c) Analysis of financial statements
4. Which of the following is not a method
for detecting wrong mention of receivables in stock statement submitted by the
borrower? The choices are:
(a) Analysis of financial statements
(b) Cross check from the balance sheet figure
(c) Receivables audit
(d) Inspection of books of account
The correct choice
is.. (a) Analysis of financial statements
5. Which of the following is not a danger
sign about the direction of business of the borrower? The choices are:
(a) Devolvement of L Cs, invocation of Bank
Guarantees
(b) Demand for higher limit
(c) Delays in submission of stock/receivables
statements
(d) Return of cheques or bills
The correct choice
is.. (d) Return of cheques or bills
6. Which of the following is not an
unsatisfactory sign in conduct of the account of the borrower? The choices are:
(a) Delay in payment of interest or instalments,
(b) routing of transactions with some other
bank
(c) Frequent over drawings
(d) High turnover
The correct choice is (d) High turnover
7. Which of the following is not the
purpose credit audit? The choices are:
(a) Improvement in the quality of credit
portfolio
(b) Review sanction process and compliance
status of large loans
(c) Feedback on regulatory compliance
(d) Stock inspection
The correct choice is (d) Stock inspection
8. Purpose of appointing bank’s nominee on
company’s board of borrowing company is:
The choices are:
(a) To keep a tab on the important decisions
of the board
(b) To be a part of the management
(c) To guide the company for better working
(d) To safeguard the securities charged to the
bank
The correct choice is (a) To keep a tab on the important
decisions of the board
************************************************************************************
UNIT 32 – Risk Management and Credit Rating
1. Which of the Following RISK not a risk
mentioned in the Basel II Accord
The choices are
(a) Operational risk
(b) Market risk
(c) Default risk
(d) Credit risk
The correct choice is
… (c) Default risk.
2. Which of the following is not a credit
risk? The choices are
(a) Unwillingness of a customer to meet his
commitment relating to a financial transaction with the bank
(b) Inability of the customer to reimburse the
bank in case of invocation of a guarantee or devolvement of an L.C
(c) Inability of a customer to meet his
commitment relating to a financial transaction with the bank
(d) Loss to the bank due to fraud
The correct choice is … (d) Loss to the bank due to fraud
3. Which of the following is an external
factor affecting credit risk?
The choices are
(a) Government policies
(b) Faulty loan and repayment structuring
(c) Overexposure (concentration) of credit to
a particular segment
(d) Lack of an efficient recovery machinery
The correct choice is … (a) Government policies
4. Which of the following is not an
internal factor affecting credit risk?
The choices are
(a) Excessive lending to cyclical industries
(b) Low quality of credit appraisal and
monitoring
(c) Deficiencies in the loan policy of the
bank
(d) Protectionist policies of other countries
The correct choice is … (d) Protectionist policies of other countries
5. Which of the following is not a macro
level action for mitigation of credit risk?
The choices are
(a) Periodically reviews of the exposure norms
for single and group borrowers
(b) Improving appraisal standards of credit
proposals
(c) Frequent reviews of norms and fixing
internal limits for aggregate commitments to specific sectors of the industry
or business
(d) Periodic review of total credit portfolio
based on quality parameters
The correct choice is … (b) Improving appraisal standards of credit proposals
6. Which of the following is not a micro
level action for mitigation of credit risk?
The choices are
(a) Improving sanctioning and delivering
process
(b) Obtention of collateral security
(c) Monitoring and review of individual
proposals/categories of proposals
(d) Periodical reviews of the exposure limits
for business or industry segment
The correct choice is … (d) Periodical reviews of the exposure limits for business or industry
segment
7. Which of the following statements is not
true regarding credit derivatives products?
The choices are
(a) These are used to hedge credit risk to the
bank
(b) The protection buyer is the lending bank
(c) The protection seller can be another bank
or any other organization
(d) The credit asset is transferred in case of
derivatives
The correct choice is … (d) The credit asset is transferred in case of derivatives.
8. Credit rating is a system of: The choices are
(a) Measuring risk
(b) Mitigating risk
(c) Migrating risk
(d) Credit appraisal
The correct choice is … (a) Measuring risk
9. Internal rating means: The choices are
(a) Rating the project
(b) Rating the promoters
(c) Rating the risk for internal use
(d) None of the above
The correct choice is … (d) None of the above.
10. For external credit rating, banks
depend on: The choices are
(a) Rating agencies
(b) Experienced staff of the bank
(c) Banking consultants
(d) None of the above
The correct choice is … (a) Rating agencies
11. Which of the following is not an
approach for assessment of credit risks, laid down under Basel 2 Accord? The choices are
(a) Standardized approach
(b) Foundation Internal Rating Based (I R B)
approach
(c) Advanced Internal Rating Based (I R B)
approach
(d) Simplified Internal Rating Based (I R B)
approach
The correct choice is … (d) Simplified Internal Rating Based (I R B) approach
12. Which of the following statements is
true regarding Standardized approach?
The choices are: (a) It has already been
adopted by all the banks
(b) It has been adopted only the foreign banks
operating in India
(c) It has been adopted by the foreign banks
operating in India
(d) It has to be adopted by the all the banks
by March 2010
The correct choice is … (a) It has already been adopted by all the banks
13. R B I has suggested which of the
following earliest date of making application by banks to R B I regarding
implementation of the advanced approaches (Foundation as well as I R B) The choices are
(a) 1, April 2012
(b) 1, April 2013
(c) 1, April 2014
(d) 1, April 2015
The correct choice is …(a) 1, April 2012
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UNIT 33 - Rehabilitation and Recovery
State true or False:
1. In the case of fund based lending, credit default means that
principal/and or interest amount may not be repaid as per the terms of
repayment. … True.
2. In the case of guarantees or letters of credit, credit default
means crystallization of the liability. … False.
3. As per R B I directives, banks in India have to classify their
assets into Performing ( standard ) assets or Non performing assets(N P As). N P
As are further classified into Sub-standard, doubtful and loss assets … True.
4. The amount of provision required to be made on the asset portfolio
of a bank depends on the classification of assets. … True.
5. No provision is required to be made by a bank on its Standard
Assets. … False.
6. The default due to the reasons beyond the control of the borrower,
is referred to as wilful default. … False.
7. The default in payment as per agreed terms could be intentional or
due to the reasons beyond the control of the borrower. … True.
8. Writing off a loan means that the borrower is no longer liable to
pay the amount to the bank. … False.
9. In case of finance under government sponsored schemes,
responsibility for recovery lies with the government. … False.
10..Banks reschedule or restructure
the loans in accordance with the revised cash flow estimates of the borrower. …
True.
11. The Debt Recovery Tribunals are meant for recovery of dues of the
banks and financial institutions only. … True.
12. For filing cases in the Debt Recovery Tribunals, the amount of
claim must be more than Rupees 10 lacs. … True.
13. SARFAESI Act provides for enforcement of security interest for
realization of dues without the intervention of courts or tribunals. … True.
14. Banks can settle disputes involving amounts up to Rupees.20 lac
through the forum of Lok Adalats. … True.
15. As per R B I directives, banks can
reschedule/restructure/renegotiate borrowal accounts with retrospective effect.
… False.
16. For restructuring of SME loans, no forum like CDR is available. …
False.
17. Credit Information System was started with the objective of sharing
information about borrowers committing defaults with any of the banks. … True.
Select the Correct Answer:
18. The aim of a rehabilitation programme is: The choices are:
(a) To make the operations of the enterprise
viable again
(b) To help in employment generation
(c) To comply with R B I guidelines
(d) To increase bank's advances
The correct answer is … (a) To make the operations of the
enterprise viable again
19. Banks enter into compromise with borrowers in case of default,
because:
The choices are:
(a) Recovery through legal action is time
consuming
(b) Adequate security is not available
(c) Realization or security may be difficult
(d) All the above
The correct answer is … (d) All the above
Mix
acute inflationary situation
a. Market savings in the form of bank deposits less attractive
b. market savings more attractive
c. Arises due to liquidity trap
d. All the above
ans-d
Many of the basic problems of economy emerge from
a. unlimited resources
b. Incompetent govt
c. The use of limited resources to satisfy human wants
d. unlimited wants
ans-c
Indian economy can be best described as
a. Developed economy
b. underdeveloped economy
c. developing economy
d. underdeveloped
ans- c
The liquidity preference arises due (i) transaction motive (ii) precautionary motive (iii) speculative motive
a. Only (i) and (ii)
b. only (i) and (iii)
c. only (ii) and (iii)
d.(i),(ii) and (iii)
ans- d
brand of economics that is concerned with the over all performance of the economy
a. Macro economcis
b. micro economics
c. both of these
d. none of these
ans-a
which phase of the business cycle is referred to as " crisis '
a. recession
b. depression
c. recovery
d. boom
ans-a
GDP
in economics, fiscal policy has got two main instruments, these are
a. govt reserves and capital
b. CRR and SLR
c. Base rate and Bank rate
d. govt spending and taxation( revenue collection)
ans-d
Real GDP is also known as
a. GDP at current price
b. GDP at constant price
c. GDP at variable price
d. none of these
ans-b
the problem of unemployment in rural ares is mainly due to
a. seasonal and underemployment
b. fractional employment
c. Stuctural employment
d. Technical employment
ans- a
SOURCE :Mcmillan book , Internet
Please correct me if any ans is wrong .
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