RBI Grade B Finance Management (FM) Questions | Test-8

Correct Answer – E. 1 and 2

Explanation- There are two types of motivation, Intrinsic and Extrinsic motivation and the entities that provide such motivations are called motivators (intrinsic or extrinsic). Intrinsic motivation means that the individual’s motivational stimuli are coming from within. The individual has the desire to perform a specific task, because its results are in accordance with his belief system or fulfills a desire and therefore importance is attached to it. Some examples of intrinsic motivators are: acceptance, curiosity, honour, power, etc. Extrinsic motivation means that the individual’s motivational stimuli are coming from outside. In other words, our desires to perform a task are controlled by an outside source. Some examples of extrinsic motivators are: pay package, bonus, praise, awards, etc.

Correct Answer: A. Offer

Explanation- MIBOR stands for Mumbai Interbank Offer Rate. It is one iteration of India’s interbank rate, which is the rate of interest charged by a bank on a short-term loan to another bank.

Correct Answer: D. Rs 10 crore

Explanation : Under the administrative arrangements, the Central Government is required to maintain a minimum cash balance with the Reserve Bank. Currently, this amount is Rs.10 crore on a daily basis and Rs.100 crore on Fridays, as also at the annual account closing day of the Centre and the Reserve Bank (end of March and June).

Correct Answer – E. Rs 1 lakh

Explanation:Under the provisions of Section 11 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), no primary (urban) cooperative bank can commence or carry on banking business if the real or exchangeable value of its paid-up capital and reserves is less than Rs. 1 lakh.

Correct Answer – C. It is the tendency of people to work better when they are under observation.

Explanation- The Hawthorne effect (also referred to as the observer effect) is a type of reactivity in which individuals modify an aspect of their behavior in response to their awareness of being observed. The original research at the Hawthorne Works in Cicero, Illinois, on lighting changes and work structure changes such as working hours and break times was originally interpreted by Elton Mayo and others to mean that paying attention to overall worker needs would improve productivity. Later interpretations such as that done by Landsberger suggested that the novelty of being research subjects and the increased attention from such could lead to temporary increases in workers’ productivity. This interpretation was dubbed “the Hawthorne effect”.

Correct Answer – D. It is a decrease in the rate of inflation in the economy.

Explanation-Disinflation is a reduction in the rate of inflation. Although they may sound the same, disinflation should not be confused with deflation. Deflation is a decrease in general price levels of commodities throughout an economy, while disinflation is what happens when price inflation slows down temporarily.

Correct Answer – C. RBI

Explanation- The CICs have the widest mandate for collection and sharing of all sort of credit information from banks, non-banks and other credit providing agencies. They are regulated by RBI under the Credit Information Companies (Regulation) Act (CICRA), 2005.