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Exam Year: 2010

  • ,

    In the parlance of financial investments, the term ‘bear’ denotes

    (a)

    An investor who feels that the price of a particular security is going to fall

    (b)

    An investor who expects the price of particular shares to rise

    (c)

    A shareholder or a bondholder who has an interest in a company, financial or otherwise

    (d)

    Any lender, whether by making a loan or buying a bond

    Correct Answer:

    (a)

  • ,

    A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?

    (a)

    India has preference, for certain countries as regards receiving FDI

    (b)

    India has double taxation avoidance agreement with Mauritius

    (c)

    Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India

    (d)

    Impending dangers of global climate change prompt Mauritius to make huge investments in India

    Correct Answer:

    (b)

  • ,

    Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act, 2003 ?

    (a)

    Elimination of revenue deficit by the end of fiscal year 2007-08

    (b)

    Non-borrowing by the central government from Reserve Bank of India except under certain circumstances

    (c)

    Elimination of primary deficit by the end of the fiscal year 2008-09

    (d)

    Fixing government guarantees in any financial year as a percentage of GDP

    Correct Answer:

    (c)

  • ,

    With reference to soil conservation, consider the following practices :
    1. Crop rotation
    2. Sand fences
    3. Terracing
    4. Wind breaks
    Which of the above are considered appropriate methods for soil conservation in India ?

    (a)

    1,2 and 3 only

    (b)

    2 and 4 only

    (c)

    1,3 and 4 only

    (d)

    1,2,3 and 4

    Correct Answer:

    (d)

  • ,

    With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements :
    1. They cannot engage in the acquisition of securities issued by the government.
    2. They cannot accept demand deposits like Savings Account.
    Which of the statements given above is/are correct ?

    (a)

    1 only

    (b)

    2 only

    (c)

    Both 1 and 2

    (d)

    Neither 1 nor 2

    Correct Answer:

    (b)

  • ,

    A pesticide which is a chlorinated hydrocarbon is sprayed on a food crop. The food chain is: Food crop – Rat -Snake – Hawk. In this food chain, the highest concentration of the pesticide would accumulate in which one of the following?

    (a)

    Food crop

    (b)

    Rat

    (c)

    Snake

    (d)

    Hawk

    Correct Answer:

    (d)

  • ,

    Widespread resistance of malarial parasite to drugs like chloroquine has prompted attempts to develop a malarial vaccine to combat malaria. Why is it difficult to develop an effective malaria vaccine ?

    (a)

    Malaria is caused by several species of Plasmodium

    (b)

    Man does not develop, immunity to malaria during natural infection

    (c)

    Vaccines can be developed only against bacteria

    (d)

    Man is only an intermediate host not the definitive host.

    Correct Answer:

    (a)

  • ,

    Which one of the following statements is an appropriate description of deflation ?

    (a)

    It is a sudden fall in the value of a currency against other currencies

    (b)

    It is a pertinent recession in both the financial and real sectors of the economy

    (c)

    It is a persistent fall in the general price levels of goods and services

    (d)

    It is a fall in the rate of inflation over a period of time

    Correct Answer:

    (c)

  • ,

    In order to comply with TRIPS Agreement, India enacted the Geographical Indications of Goods (Registration & Protection) Act, 1999. The difference/differences between a ‘Trade Mark’ and a Geographical Indication is/are:
    1. A Trade Mark is an individual or a company’s right whereas a Geographical Indication is a community’s right.
    2. A Trade Mark can be licensed whereas a Geographical Indication cannot be licensed.
    3. A Trade Mark is assigned to the manufactured goods whereas the Geographical Indication is assigned to the agricultural goods/products and handicrafts only.
    Which of the statements given above is/are correct ?

    (a)

    1 only

    (b)

    1 and 2 only

    (c)

    2 and 3 only

    (d)

    1,2 and 3

    Correct Answer:

    (b)

  • ,

    Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government ?

    (a)

    Cash Credit Ratio

    (b)

    Debt Service Obligation

    (c)

    Liquidity Adjustment Facility

    (d)

    Statutory Liquidity Ratio

    Correct Answer:

    (d)