Finance Management (FM) Questions for RBI Grade B Phase 2 | Test-11
Attempt Free FM Questions for RBI Grade B Phase 2 exam. Get RBI Grade B Finance and Management (FM) Notes PDFs, ESI Question Paper & Quizzes. Finance Management (FM) Questions for RBI Grade B 2024.
Finance Management (FM) Questions for RBI Grade B Phase 2 Exam
FM Questions for RBI Grade B Phase 2
Attempt Free FM Questions for RBI Grade B Phase 2 exam. RBI Grade B Finance and Management Note PDF. RBI Grade B FM Study Material PDF. RBI Finance and Management (FM) Books, PDF, Previous Papers, Question Set, and study material. As we all know that RBI Grade B Notification 2024 is out. The Reserve Bank of India (RBI) conducted the RBI Grade B Phase I Exam for the post of Grade B (Grade ‘B’ (DR) – (General) & others). It’s the right time when you should start your RBI Grade B Phase 2 preparation at full pace.
If you are preparing for RBI Grade B (Phase 2), you will come across a section on “Finance and Management (FM)” wherein 65 questions will be there carrying 50 marks. Here we are providing you with “Finance and Management (FM) Questions for RBI Grade B” with answers based on the latest pattern of your daily practice.
Finance Management (FM) Questions for RBI Grade B | Test-11
1. Feedback in the communication process can be obtained from which of the following ways:
Market Research
Internal systems and forums
Verbal and non-verbal ways
None of the above
All of the above
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Correct Answers: E. All of the above
Explanation- In communication process feedback is very important. Feedback can be acquired in many ways like:
(i) By establishing proper internal systems and forums for the employees to give feedback.
(ii) By establishing Market Research channels, company can get feedback from internal employees and external target groups.
(iii) Feedback can also be received from verbal and non-verbal cues.
2. The origin of management as a discipline was developed in the late _____century.
20th
19th
18th
17th
None of the above
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Correct Answers: B. 19th
Explanation- The practice of management is as old as human civilization. The ancient civilizations of Egypt (the great pyramids), Greece (leadership and war tactics of Alexander the great) and Rome displayed the marvelous results of good management practices. The origin of management as a discipline was developed in the late 19th century. Over time, management thinkers have sought ways to organize and classify the voluminous information about management that has been collected and disseminated. These attempts at classification have resulted in the identification of management approaches. The approaches of management are theoretical frameworks for the study of management. Each of the approaches of management is based on somewhat different assumptions about human beings and the organizations for which they work.
3. Whom of the below was a major contributor to bureaucratic management?
Fredrick Winslow Taylor
Henri Fayol
Max Weber
Elton Mayo
None of the above
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Correct Answers: C. Max Weber
Explanation- Bureaucratic management focuses on the ideal form of organization. Max Weber was the major contributor to bureaucratic management. Based on observation, Weber concluded that many early organizations were inefficiently managed, with decisions based on personal relationships and loyalty. He proposed that a form of organization, called a bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability, would lead to more efficient management. Weber also contended that managers’ authority in an organization should be based not on tradition or charisma but on the position held by managers in the organizational hierarchy.
Correct Answers: B. Produce, Promotion, price, Place
Explanation- There are two sections one is production mix and marketing mix/management. Under marketing management there are 4Ps and they are Produce, Promotion, Price and physical distribution.
5. Which of the following statement is not defined in HRD?
HRD helps in study and practice of individuals, groups and organisation through learning for the purpose of human and organisational growth.
HRD develops manpower through methods like training, promotions and opportunities for career development.
HRD helps in developing highly efficient and innovative products to increase the profitability of the organisation.
HRD is the integrated use of Training and development, career development and organisational development.
All of the above
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Correct Answers: C. HRD helps in developing highly efficient and innovative products to increase the profitability of the organisation.
Explanation- HRD is responsible for Employee development, career development and organisational development. They ensure that employees are getting regular training and given a career path which gives them opportunities of promotions.
6. Kisan Credit Card Scheme was introduced in which year?
1991
1994
1996
1998
2003
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Correct Answers: D. 1998
Explanation- The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks. This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V.GUPTA committee to provide term loans and agricultural needs. Its objective is to meet the comprehensive credit requirements of the agriculture sector by giving financial support to farmers. Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks. The scheme has short term credit limits for crops, and term loans. KCC credit holders are covered under personal accident insurance up to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risk. The premium is borne by both the bank and borrower in a 2:1 ratio. The validity period is five years, with an option to extend for up to three more years. Kisan Credit Card (KCC) offering credit to the farmers in two types viz, 1. Cash Credit 2. Term Credit (for allied activities such as pump sets, land development, plantation, drip irrigations).
7. If the interest rate is decreased in an economy, it will-
decrease the consumption expenditure in the economy
increase the tax collection of the Government
increase the investment expenditure in the economy
increase the total savings in the economy
Both (A) and (B)
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Correct Answers: C. increase the investment expenditure in the economy
Explanation- Decline in the rate of interest will increase the investment expenditure in the economy.
8. The minimum amount of investment required to issue a certificate of deposit is _______.
50,000 Rs.
1 lakh Rs.
1.5 lakh Rs.
3 lakh Rs.
All of above
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Correct Answers: B. 1 lakh Rs.
Explanation- Certificate of deposit market deals with the certificate of deposits issued by commercial banks. A certificate of deposit is a document of title to a time deposit. The minimum amount of investment should not be less than Rs. 1 lakh and in the multiples of 1 lakh thereafter. The maturity period of CDs issued by banks should not be less than seven days and not more than one year. They are freely transferable by endorsement and delivery. Certificate of deposits provides greater flexibility to an investor in the deployment of their short-term funds.
Note:
(i) Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for a specified time period. CDs can be issued by (i) scheduled commercial banks {excluding Regional Rural Banks and Local Area Banks}; and (ii) select All-India Financial Institutions (FIs) that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI.
9. Which of the following is not a credit derivative?
Assets Swaps
Credit Link Notes
Total return swaps
Forward Rate Option
Synthetic Collateralized Debt Obligation
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Correct Answers: D. Forward Rate Option
Explanation- A credit derivative is a financial instrument that transfers credit risk from one party to another without transferring the underlying asset / portfolio of asset. Forward rate Option is a financial contract between two parties to exchange interest payments based on a notional principal for a specified future period. It is an example of Interest Rate derivative and no credit risk is involved in this.
10. Which of the following is best suitable for a start up as an alternative source of funding?
Angel Investors
Venture capital
Social Impact investment
Equity crowd funding
All the above
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Correct Answers: A. Angel Investors
Explanation- Angel investors are usually affluent individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. The angel investors play a crucial role in mentoring business owners by offering their hands-on experience and a network of valuable connections. For this reason, it is not unusual for angel investors to focus on those industries in which they have already succeeded. An increasing number of angel investors now invest through crowd funding platforms online or organize themselves into angel groups or angel networks to share research and pool their investment capital.
