RBI Grade B Finance Management (FM) Questions | Test-7

Correct Answer – B. Decoder

Explanation- A communication process involves the following:

1) Sender/Communicator: It is the person who is sending the message.

2) Message: It is the subject matter of communication.

3) Encoding: It refers to the process of converting the message into communication symbols.

4) Media/Transmission: A message is sent by some medium, it can either be face–to–face conversation, through letter, telephone, E–mail etc.

5) Receiver: A receiver is a person to whom the message is sent

6) Decoder: It is the person who is responsible to make the message understandable, if the message is encoded using some technique.

7) Feedback: It is a signal showing that the message is being received and understood by the receiver.

Correct Answer: B. Cognitivism

Explanation- Under Cognitivism theory of learning human resource development, educators focus on improving mental processes rather than physical actions.

Correct Answer: B. Lenient/strict Tendency

Explanation:Managers rating have various tendencies. Some are:
(i) Halo Effect: The tendency to make inappropriate generalizations from one aspect of a person’s job performance.
(ii) Leniency: The tendency to evaluate all people outstanding or give inflated ratings.
(iii) Strictness: The tendency to rate all people at the lower end of the scale.
(iv) Central tendency: The tendency to evaluate every person as average.

Correct Answer – A. It is the impact of the price levels of previous year on the calculation of inflation rate.

Explanation:It is the impact of the price levels of previous year on the calculation of inflation rate.

Correct Answer – C. 17.33%

Explanation- Cash Sales = ₹ 3,00,000
% of Cash sales = 100% – Credit Sales%
= 100 % – 90% = 10%
10% of Total Sales = Cash Sales
Total Sales =3000 × 100/10 = ₹ 30,00,000

Gross Profit Ratio = 20%
So, Gross Profit = Total Sales × GP Ratio
= 30,00,000 × 20/100

= ₹ 6,00,000
Net Profit = GP – Indirect Expenses
= 6,00,000 – 80,000
=₹ 5,20,000

Net profit ratio = 520000/3000000 x 100 = 17.33%

Correct Answer – D. National Payment Corporation of India (NPCI)

Explanation- National Payment Corporation of India (NPCI) has launched an artificial intelligence (AI) based chatbot, PAi, to create awareness around its products like FASTag, RuPay, UPI, AePS on a real time basis. This is yet another NPCI’s initiative to improve digital financial inclusion in India. The AI virtual assistant, PAi is available round the clock helping users with access to accurate information on NPCI products. Customers can ask their queries in English and Hindi, via text or voice on the websites of NPCI, RuPay, and UPI Chalega. Through PAi, users get verified automated responses to their queries on all NPCI’s products. PAi would also be accessible to global RuPay Cardholders as well.

Correct Answer – D. It is in an organization’s own best interest to act in an ethical way.

Explanation- The Enlightened Self-Interest model of CSR states that an organization should act in ethical way. Enlightened Self-interest advances the belief that ethical behaviour can be good for business – for example, gaining a competitive edge by adding value to an organisation’s products or increasing the company’s public reputation.