Banking Awareness,

Q1. The World Bank Group consists of how many organisations-

(a) One

(b) Two

(c) Three

(d) Four

(e) Five

Q2. The World Bank is like a cooperative, made up of --------------- member countries. These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank. 

(a) 189

(b) 193

(c) 159

(d) 173

(e) 187

Q3. Name the agency, Which is an agency to provide ‘soft-loans’ to developing countries?

(a) Asian Infrastructure Investment Bank (AIIB)

(b) Organization of the Petroleum Exporting Countries (OPEC) 

(c) Asian Development Bank (ADB)

(d) World Trade Organization (WTO)

(e) International Development Association (IDA)

Q4. On July 15, 2014 at the sixth summit in Fortaleza, Brazil the member countries signed the Articles for the New Development Bank (NDB). What is the authorised capital of NDB?

(a) USD 200 billion

(b) USD 300 billion

(c) USD 500 billion

(d) USD 100 billion

(e) None of the above

Q5. The first Board of Governors meeting of the BRICS New Development Bank was held in ____________ on July 7, 2015 where the Bank formally came into existence as a legal entity. 

(a) Brazil

(b) Russia

(c) South Africa

(d) India

(e) China

Q6. With effect from March 31, 2005, an asset would be classified as _____________ if it has remained in the sub­standard category for a period of 12 months. 

(a) Sub­standard Assets

(b) Profit Assets

(c) Doubtful Assets

(d) Loss Assets

(e) None of the above

Q7. What is the financial limit Under MUDRA's Shishu scheme?

(a) Rs. 5,00,000

(b) Rs. 50,000

(c) Rs. 1,00,000

(d) Rs. 10,000

(e) Rs. 1,50,000

Q8. What is the financial limit Under MUDRA's Kishor scheme?

(a) Rs. 50,000 to Rs. 10 lakh

(b) Rs. 50,000 to Rs. 3 lakh

(c) Rs. 50,000 to Rs. 1 lakh

(d) Rs. 50,000 to Rs. 2 lakh

(e) Rs. 50,000 to Rs. 5 lakh

Q9. Which among the following Incentives and facilities offered to the SEZs is not correct-

(a) Duty-free import/domestic procurement of goods for development, operation and maintenance of SEZ units.

(b) Exemption from State sales tax and other levies as extended by the respective State Governments.  (c) Exemption from minimum alternate tax under section 115JB of the Income Tax Act.

(d) 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for 10 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.

(e) Exemption from Central Sales Tax.

Q10. ___________ is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. 

(a) SEZs

(b) FDI

(c) FIPB

(d) CDR

(e) CSR

Q11. IBA was set up in ________ with 22 members to discuss issues of common interests.

(a) 1946

(b) 1955

(c) 1934

(d) 1921

(e) 1961

Q12. What is the effort of IBA?

(a) Assist and provide common services to members.

(b) Promote sound and progressive banking principles and practices. 

(c) Co-ordinate and co-operate on procedural, legal, technical, administration, professional matters. 

(d) Build Image of banking industry through publicity and public relations.

(e) All of the above

Q13. Central Government has notified in the Official Gazette ___________ CPI inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent.

(a) 4 percent

(b) 3 percent

(c) 5 percent

(d) 2 percent

(e) None of the above

Q14. What is the full form of CPI?

(a) Customer Price Index

(b) Consumer Price Index

(c) Consumer Product Index

(d) Consumer Price Indian

(e) Custom Price Index

Q15. What is the focus & Priorities of IBA?

(a) The Government of India on policy related issues 

(b) Industry unions on wage negotiations and improving industrial relations 

(c) Foreign counterparts to widen the horizon and perspectives 

(d) Members to encourage inter-bank co-operation and co-ordination 

(e) All of the above

Solutions

S1. Ans.(e)
Sol. The World Bank Group consists of five organizations. These are:-
1. International Bank for Reconstruction and Development (IBRD)
2. International Development Association IDA)
3. International Finance Corporation (IFC)
4. Multilateral Investment Guarantee Agency (MIGA)
5. International Centre for Settlement of Investment Disputes (ICSID)

S2. Ans.(a)
Sol. The World Bank is like a cooperative, made up of 189 member countries. These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank.

S3. Ans.(e)
Sol. International Development Association (IDA) is an agency to provide ‘soft-loans’ to developing countries.

S4. Ans.(d)
Sol. At the fourth BRICS Summit in New Delhi (2012), the leaders of Brazil, Russia, India, China and South Africa considered the possibility of setting up a New Development Bank (NDB) to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries. the authorised capital of NDB is USD 100 billion.

S5. Ans.(b)
Sol. The inaugural meeting of the Board of Governors of the NDB was chaired by Russia and held on the eve of the Ufa Summit on 7 July 2015, when the Bank formally came into existence as a legal entity.

S6. Ans.(c)
Sol. With effect from March 31, 2005, an asset would be classified as doubtful if it has remained in the sub­standard category for a period of 12 months. A loan classified as doubtful has all the weaknesses inherent in assets that were classified as sub­standard, with the added characteristic that the weaknesses make collection or liquidation in full,– on the basis of currently known facts, conditions and values – highly questionable and improbable.

S7. Ans.(b)
Sol. Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products/schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth/development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes is:-
(a) Shishu:- covering loans up to  50,000/-
(b) Kishor:- covering loans above  50,000/- and up to  5 lakh
(c) Tarun:- covering loans above  5 lakh to  10 lakh

S8. Ans.(e)
Sol. Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products/schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth/development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes is:-
(a) Shishu:- covering loans up to  50,000/-
(b) Kishor:- covering loans above  50,000/- and up to  5 lakh
(c) Tarun:- covering loans above  5 lakh to  10 lakh

S9. Ans.(d)
Sol. The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-
(a) Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
(b) 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
(c) Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
(d) External commercial borrowing by SEZ units up to US $ 500 million in a year without any maturity restriction through recognized banking channels.
(e) Exemption from Central Sales Tax.
(f) Exemption from Service Tax.
(g) Single window clearance for Central and State level approvals.
(h) Exemption from State sales tax and other levies as extended by the respective State Governments.

S10. Ans.(a)
Sol. Special Economic Zones (SEZs) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.

S11. Ans.(a)
Sol. Indian Banks' Association (IBA) set up in 1946 with 22 members to discuss issues of common interests. Over the years, IBA emerged as the Voice of Indian Banking Industry. IBA adopts a consultative approach to give its views on any issue pertaining to the banking sector.

S12. Ans.(e)
Sol. Effort of IBA is-
1. Promote sound and progressive banking principles and practices.
2. Assist and provide common services to members.
3. Co-ordinate and co-operate on procedural, legal, technical, administration, professional matters.
4. Collate, classify and circulate statistical and other information.
5. Pool expertise towards common objectives of reduction in costs, increase efficiency, productivity and improve systems, procedures and banking practices.
6. Build Image of banking industry through publicity and public relations.

S13. Ans.(a)
Sol. The amended RBI Act also provides for the inflation target to be set by the Government of India, in consultation with the Reserve Bank, once in every five years. Accordingly, the Central Government has notified in the Official Gazette 4 per cent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent.

S14. Ans.(b)
Sol. CPI stands for Consumer Price Index.

S15. Ans.(e)
Sol. Focus & Priorities of IBA is:-
1. The Government of India on policy related issues
2. Industry unions on wage negotiations and improving industrial relations
3. Members to encourage inter-bank co-operation and co-ordination
4. Foreign counterparts to widen the horizon and perspectives
5. Other trade bodies for better co-ordination
6. Its constituents and stakeholders for new initiatives
7. The Reserve Bank of India on regulatory issues