RBI Grade B Finance Management (FM) Questions | Test-6
Attempt Free RBI Grade B Finance Management (FM) Questions for Phase 2 exam. Get RBI Grade B Finance and Management Notes PDFs, ESI Question Paper & Quizzes.
Finance Management (FM) Questions for RBI Grade B Phase 2 Exam
RBI Grade B Finance Management (FM) Questions for Phase 2
RBI Grade B Finance Management (FM) Questions for 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.
RBI Grade B Finance Management (FM) Questions | Test-6
1. The Indian government has decided to withdraw which of the following Bonds?
Cash management bills
Capital Gains Bonds Scheme
Sovereign Gold Bond Scheme
Savings Bonds Scheme
None of these
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Correct Answer: D. Savings Bonds Scheme
Explanation: The government has decided to withdraw 7.75% Savings (Taxable) Bonds scheme from the close of banking business on Thursday due to declining interest rates. The scheme, commonly known as RBI Bonds or GOI bonds, is popular among retail investors who looking for safety of principal and a regular income. The Reserve Bank of India too has notified the Cessation of 7.75% Savings (Taxable) Bonds, 2018. Interest on the Bonds is taxable. The Bonds are issued at par at ₹100. The minimum subscription was fixed at ₹1,000. As per the scheme, the Bonds are be repayable on the expiration of seven years from the date of issue.
2. Which motivational technique promotes collective goal setting and teamwork?
Profit sharing
Solicit Employee Input
Recognizing Achievements
Providing Incentives
None of the above
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Correct Answer: A. Profit sharing
Explanation: Sharing Profits technique will motivate employees with incentives based on profit sharing through earnings. It helps in promoting collective goal setting and teamwork by giving full ownership to the employees.
3. In Human Resource Management, which among the following theory is an economic approach where people are considered as valuable assets?
Institutional Theory
Human Capital Theory
Resource Dependency Theory
Agency Theory
None of the above
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Correct Answer: B. Human Capital Theory
Explanation: According to the guiding theories in Human Resource Management, Human Capital theory is an economic approach, here people are valuable assets. This theory makes the formula of training and development as returnable assets which could be the investment capital of an organization.According to the guiding theories in Human Resource Management, Human Capital theory is an economic approach, here people are valuable assets. This theory makes the formula of training and development as returnable assets which could be the investment capital of an organization.
4. Behavioural studies on leaderships says that a leader should set an inspiring example for followers and that he should possess following characteristics:
Correct Answer:B. Diligence, Daring, Innovation and creativity, peer assessment
Explanation: The behavioural studies of management, shows that a leader should be Daring. He should be innovative and creative in his approach. He should asses the strength and weakness of his peer. He should always apply due diligence in each and every task.
5. Name the theory that says that there is one best way to do a particular job, that can be taught to employees and that they should be followed strictly and without any error or deviation.
Likert’s Theory
Vroom’s Expectancy Theory
Scientific Management
Theory X and Y
Theory Z
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Correct Answer: C. Scientific Management
Explanation: F.W. Taylor in 1911 gave the Principles of scientific management. It has features like:
(i) Systematic Approach
(ii) Bringing Complete Mental Change
(iii) Discards Traditional management
(iv) Requires Strict Observation
(v) Improves Efficiency of work
6. Sweat equity shares should be locked in for a period of ________ years
1
2
3
4
None of these
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Correct Answer: C. 3
Explanation: Sweat equity means equity shares issued by the company to its employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions. The SEBI (Issue of Sweat Equity) Regulations, 2002 have been framed and the main provisions laid down for issue of sweat equity are the following:
1. The issue of sweat equity shares is authorized by a special resolution passed by the company in the general meeting. The resolution specifies the number of shares, current market price, consideration, if any, and the class or classes of directors or employees to whom such equity shares are to be issued.
2. The sweat equity shares should be locked in for a period of three years.
3. The pricing of the sweat equity shares should be as per the formula prescribed for that of preferential allotment.
4. Not less than one year has elapsed at the date of the issue since the date on which the company was entitled to commence business.
5. The sweat equity shares of a company whose equity shares are listed on a recognized stock exchange are issued in accordance with the regulations made by the Securities and Exchange Board of India in this behalf.
7. Which clause of Companies Act, 2013 details composition of CSR committee of the board-
130
154
153
135
None of the above
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Correct Answer: D. 135
Explanation:The Companies Act, 2013 has formulated Section 135, Companies (Corporate Social Responsibility) Rules, 2014 and Schedule VII which prescribes mandatory provisions for Companies to fulfil their CSR.
8. Which among the following will not come under Operating Activities?
Purchase of Machinery
Cash payments to and on behalf of the employees
Cash payments to suppliers for goods and services.
cash receipts from royalties, fees, commissions and other revenues
None of these
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Correct Answer: A. Purchase of Machinery
Explanation: Cash Flow of a Company is divided into three sections – cash flow from operating activities, cash flow from Investing and cash flow from financing activities. Cash flow from operating activities (CFO) is an accounting item that indicates the amount of money a company brings in from the ongoing regular business activities, such as manufacturing and selling goods or providing a service. Cash flow from operating activities does not include long-term capital expenditures or investment costs, as they may be one time activities. CFO focuses only on the core business and is also known as operating cash flow (OCF) or net cash from operating activities. So, the investment in Purchase of Machinery is part of Investing Activities (Long term capital Expenditure).
9. A leadership theory which states that leaders are born with right traits and abilities for leading is called-
Great Man Theory
Behavioural theory
Situational Theory
Contingency Theory
Trait Theory
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Correct Answer: A. Great Man Theory
Explanation: According to the Great man theory, the best leaders are born, not made. Leaders are born with the right traits and abilities for leading like intellect, confidence, communication and social skills.
10. Which of the following committees has recommended the establishment of Small Finance Banks?
Deepak Mohanty Committee on financial inclusion
Nachiket Mor committee on financial inclusion
Rangarajan committee on financial inclusion
All the above
None of these
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Correct Answer: B. Nachiket Mor committee on financial inclusion
Explanation: The “Committee on Comprehensive Financial Services for Small Businesses and Low Income Households” was set up by the RBI in Sep 2013 under the chairmanship of Nachiket Mor, an RBI board member.
Key Recommendations are-
* Providing a universal bank account to all Indians above the age of 18 years by January 1, 2016. To achieve this, a vertically differentiated banking system with payments banks for deposits and payments and wholesale banks for credit outreach. These banks need to have Rs.50 crore by way of capital, which is a tenth of what is applicable for new banks that are to be licensed.
* Aadhaar will be the prime driver towards rapid expansion in the number of bank accounts.
* Monitoring at the district level such as deposits and advances as a percentage of gross domestic product (GDP).
* Adjusted 50 per cent priority sector lending target with adjustments for sectors and regions based on difficulty in lending.
