SEBI Grade A (General Stream) Mock Test - 3 - Bank Exams MCQ

The correct answer is Option 2.

Key Points

• The passage explicitly states that one of Vladimir Putin's key decisions after being sworn in as Russia’s President for the fifth time was to remove his long-time Minister of Defence, Sergei Shoigu. This directly answers the question.
• Andrei Belousov, mentioned as a replacement for the Minister of Defence, is brought in due to his background as a civilian economist, highlighting the economic aspects of the war in Ukraine faced by Russia. This context emphasizes the significance of removing Sergei Shoigu and appointing Andrei Belousov, aligning with option 2.
• The passage provides a brief review of Shoigu's tenure, mentioning his successful military operations such as the annexation of Crimea and Russia’s military intervention in Syria. This background information emphasizes the importance of his removal from the role.

​Therefore, the correct answer is 'Sergei Shoigu'.

Additional Information

• Option 1 (Andrei Belousov) is incorrect because he was appointed to run the Defence Ministry, not removed from it.
• Option 3 (Yevgeny Prigozhin) is mentioned in the passage as the late Wagner chief who led a rare rebellion. He was not the one removed from the role of Minister of Defence.
• Option 4 (A civilian economist) refers to Andrei Belousov's professional background rather than his name, but it does not accurately answer the question of who was removed.
• Option 5 (None of the above) is inaccurate because Sergei Shoigu, who is listed as option 2, was indeed removed from the role according to the passage.

The correct answer is: Option 3.

Key Points

• The word "repressive" means something that restricts freedom and controls individuals in a strict or authoritarian manner. (दमनकारी)
  • Example: The regime was criticized for its repressive policies against political dissidents.
• "Liberating" refers to something that provides freedom or relief from restrictions, making one feel free and unburdened. (मुक्तिदायक)
  • Example: The fall of the oppressive government was a liberating moment for the citizens.
• Hence, we can infer that the opposite of 'repressive' is 'liberating'.

Therefore, the correct answer is: Liberating.

Additional Information

Here are the other options explained along with their Hindi meanings and example sentences:

• Oppressive (उत्पीड़क): Causing discomfort or distress, often through harsh or authoritarian measures.
  • Example: The oppressive heat made it difficult to work outside.
• Authoritarian (सत्तावादी): favouring or enforcing strict obedience to authority at the expense of personal freedom.
  • Example: The authoritarian government imposed strict censorship on the media.
• Confining (सीमित करनेवाला): Restricting the movement or freedom of someone or something.
  • Example: The small, confining space made me feel claustrophobic.
• Restrictive (प्रतिबंधात्मक): Imposing limitations or restrictions.
  • Example: The new law introduced restrictive measures on immigration.

• The sentence indicates that the Sharmas had a display of their wealth that was meant to impress or attract notice.
• The word "ostentatious" means characterized by vulgar or pretentious display, designed to impress or attract notice, which fits the context of the Sharmas displaying their ill-gained wealth. (दिखावटी)
• The words "imaginary," "apparent," and "daring" do not fit the context of the sentence, making them incorrect choices.
• Understanding the meaning of "ostentatious" in the context of the sentence helps to clarify that the display was meant to show off their wealth in an exaggerated manner.

• Imaginary (कल्पित) means existing only in the imagination.
• Apparent (स्पष्ट) means clearly visible or understood; obvious.
• Daring (साहसी) means adventurous or audaciously bold.

The correct answer is Option 2.

Key Points

• Let's first identify the logical flow of the paragraph while keeping in mind that sentence C is the third sentence.
  • B: This sentence gives the introduction about the aggressive behaviour of commercially reared chickens and provides background information.
  • D: This gives additional information on the conditions in which chickens are kept to mitigate aggressive behaviour.
  • C: This sentence, which is already identified as the third sentence, suggests a solution by altering the bird's environment.
  • F: This sentence provides evidence of the effectiveness of the solution suggested in sentence C.
  • A: This describes the results of the experiment in detail, highlighting the behavior of the birds.
  • E: This concludes by mentioning the potential benefits of using bales, thus wrapping up the paragraph.
• So the correct order of the sentences is BDCFAE.
• Hence, the first sentence in the correct order is: B.

​Therefore, the correct answer is B.

Rearranged Paragraph: Commercially reared chicken can be unusually aggressive and are often kept in darkened sheds to prevent them from pecking at each other. In low light conditions, they behave less belligerently but are more prone to ophthalmic disorders and respiratory problems. Altering the bird's environment, by adding bales of wood-shaving to their pens, can work wonders. In an experiment, aggressive head-pecking was all but eliminated among birds in the enriched environment. The birds spent far more of their time - up to a third - pecking at the inanimate objects in the pens, in contrast to birds in other pens, which spent a lot of time attacking others. In an experiment, aggressive head-pecking was all but eliminated among birds in the enriched environment.

Calculation:

Let be assume the marked price of the article is MP

and cost price of the article is CP

and the discount percentage is X

From statement l,

⇒ CP × (120/100) = MP × (100 - X)/100 ----(i)

Also,

⇒ CP × (96/100) = MP × (100 - 2X)/100 ----(ii)

Dividing (i) and (ii), we get:

⇒ 5/4 = (100 - X)/(100 - 2X)

⇒ X = (50/3)%

⇒ Hence, statement l alone is sufficient to answer the question

From statement ll,

⇒ MP = CP × (160/100)

⇒ Hence, statement ll alone is not sufficient to answer the question

∴ The data in statement (I) alone is sufficient to answer the question.

Given:

From Statement I,

Praveen's present age = 2 × (Bipin's present age)

From statement II,

4 years ago Praveen's age = 3 × (4 years ago Bipin's age)

Calculation:

From statement I and II together,

Let Bipin's present age be x years.

And Praveen's present age = 2x years

4 years ago Bipin's age = (x - 4) years

4 years ago Praveen's age = (2x - 4) years

Now according to the statement II,

(2x - 4) = 3(x - 4)

⇒ 2x - 4 = 3x - 12

⇒ 3x - 2x = 12 - 4

⇒ x = 8

Hence, the present age of Praveen = 2 × 8

⇒ 16 years

∴ Both statement I and statement II together is needed to answer the question.

The series follows the following pattern:

(∵ subtracting prime numbers)

⇒ 6³ = 216 ⇒ 216 – 2 = 214

⇒ 7³ = 343 ⇒ 343 – 3 = 340

⇒ 8³ = 512 ⇒ 512 – 5 = 507

⇒ 9³ = 729 ⇒ 729 – 7 = 722

⇒ 10³ = 1000 ⇒ 1000 – 11 = 989

⇒ 11³ = 1331 ⇒ 1331 – 13 = 1318

The series follows the following pattern:

17 × 1 + 5 = 22

22 × 2 + 4 = 48

48 × 3 + 3 = 147

147 × 4 + 2 = 590

590 × 5 + 1 = 2951

∴ The missing term in the series is 590.

The series follows the following pattern:

5 + (1 × 8.5) = 13.5

13.5 + (2 × 8.5) = 30.5

30.5 + (4 × 8.5) = 64.5

64.5 + (8 × 8.5) = 132.5

132.5 + (16 × 8.5) = 268.5

Alternate Logic :

5 × 2 + 3.5 = 13.5

13.5 × 2 + 3.5 = 30.5

30.5 × 2 + 3.5 = 64.5

64.5 × 2 + 3.5 = 132.5

132.5 × 2 + 3.5 = 268.5

Number of players sold to CSK = 270 × (80/360) = 60

Number of Indian players sold to SRH = 70% of 60 = 42

Number of players sold to DC = 270 × (128/360) = 96

Required percent = (42/96) × 100 = 43.75%

The least possible Venn diagram for the given statements is as follows -

Conclusions:

1). No Motivation is Battle. → True (Only Warriors are Battles means All Battles are Warriors and Battles cannot be related to any other element except Warriors. So it is definite that No Motivation is Battle. Hence, it follows.)

2). Some Motivation can be Battles. → False (Only Warriors are Battles means All Battles are Warriors and Battles cannot be related to any other element except Warriors. So it is not possible that Some Motivation is Battle. Hence, it doesn't follow.)

3). Some Battles can be Wounds. → False (Only Warriors are Battles means All Battles are Warriors and Battles cannot be related to any other element except Warriors. So it is not possible that Some Battles are Wounds. Hence, it doesn't follow.)

4). All Warriors can be Motivation. → False (Only Warriors are Battles means All Battles are Warriors and Battles cannot be related to any other element except Warriors. It also means that the part of Warriors which are Battles can never be Motivation. So, it is not possible that All Warriors are Motivation. Hence, it doesn't follow.)

5). All Battles being Motivation is a possibility. → False (Only Warriors are Battles means All Battles are Warriors and Battles cannot be related to any other element except Warriors. So it is not possible that All Battles are Motivation. Hence, it doesn't follow.)

Hence, the correct answer is No Motivation is Battle.

People: Hari, Anil, Ravi, Vihan, Deep, Shiv, Isha and Neha.

Floors: 1, 2, 3

Profession: Teacher, Businessman or Doctor.

From three Doctors two stay on floor numbered 3. Shiv and Ravi stay on the same floor, and there are three businessmen. Therefore, there are 3 businessmen, 3 Doctors and 2 Teacher. In each floor, there are at least two and at most three flats. And at least two peoples are in each profession but not more than three.

1) Hari stays on floor numbered 2 and Vihan do not stay on the same floor as Hari.

2) Both people staying on floor numbered 2 are Teachers.

3) Shiv is Doctor but does not stay on floor numbered 1.

4) Vihan and Deep stay on different floors but not on floor numbered 1 and are in different professions but not Doctor

5) From three Doctors two stay on floor numbered 3.

6) Anil and Ravi stay on different floors but not in floor numbered 2, and both are in the same profession.

7) Neha and Isha stay on the same floor and are in the same profession, but not Doctor.

8) Shiv and Ravi stay on the same floor.

Final arrangement will be

Anil lives in first floor and just above him is second floor where Hari and Deep lives.

Clearly,

on → cap

useless → usa

Hence, the code for 'on useless' is cap usa.

We have drawn the figure according to the information given in the question,

There is a difference of 4km horizontally between the final position of Misty i.e. S and Shristy's final position i.e. N

Hence, Misty's final position is northwest of Shristy's Final position.

The correct answer is Ensure short-term liquidity.

Key Points

• Increase bank capital requirements: Refers to the Basel III requirement that banks hold a certain level of capital to mitigate risks.
• Reduce systemic risk: Overall goal of Basel III, aiming to prevent financial crises by improving the banking sector's ability to absorb shocks.
• Ensure short-term liquidity: LCR ensures that banks have an adequate level of unencumbered, high-quality liquid assets that can be converted into cash to meet their short-term obligations.
• Phase out Tier 1 capital: Incorrect; Basel III actually places greater emphasis on Tier 1 capital, which is the core measure of a bank's financial strength from a regulator's point of view.
• Enhance market discipline: A goal of the Basel framework, encouraging banks to manage their risks better through transparency and regulatory oversight.

The correct answer is Job Enrichment.

Key Points

• Job Design: It refers to the process of arranging work tasks for individual employees. While it influences morale, it is not exclusively focused on enhancing satisfaction or engagement.
• Job Analysis: The process of studying and collecting information relating to the operations and responsibilities of a specific job. It's more about understanding the job than affecting morale directly.
• Job Enrichment: It involves redesigning jobs in such a way that they are more challenging to the employee and have less repetitive work. This enhances employee satisfaction and engagement, thereby positively impacting morale.
• Organizational Culture: While it encompasses norms, values, and practices within an organization and can influence morale, it is broader than the concept of job enrichment.
• Organizational Climate: It refers to the shared perceptions of employees about their work environment. Like culture, it affects morale but is not directly related to job enrichment practices.

The correct answer is Underlying asset transfer.

Key Points

• The following are the features of Swaps:
  • Risk management
  • Cash flow exchange
  • Customizability
  • Interest rate exposure
• "Swaps" involve the exchange of cash flows rather than the transfer of the underlying assets themselves, distinguishing them from other derivative structures.

The correct Answer is Option 1

The realizable value of the scrap is deducted from the factory overheads while preparing the cost sheet.Key Points

• Scrap value is a relatively minor sum received by a company from the sale of manufacturing elements that remain after the creation of its goods in cost accounting.
• When a physical object is deemed no longer viable, scrap value is the value of its various components. Individual components, referred to as scrap, are worth anything if they can be repurposed.
• Scrap is made from various materials that are leftover over after manufacturing in cost accounting. Scrap is a commodity with a poor resale value.
• The realizable value of the scrap is deducted from the factory overheads while preparing the cost sheet
• Scrap value is present as follows in cost sheet:

The correct answer is Future orientation.

Key Points

• Historical Cost Principle: Involves recording assets and liabilities at their original purchase cost.
• Objectivity, Verifiability, Stability: These characteristics are inherent to the historical cost concept, given it requires recording the cost as it objectively happened, can be verified, and provides stability in financial reporting.
• Relevance: While historical cost is relevant at the time of acquisition, its relevance can diminish over time due to inflation or changes in market value.
• Future Orientation: Incorrect for historical cost, as it focuses on past costs rather than future values or potential.

The correct answer is Schedule 7.

Key Points

• Corporate Social Responsibility is mentioned under Schedule 7 (Section 135) in the Companies Act, 2013.
• The term "Corporate Social Responsibility" in general can be referred to as a corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.
• In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.
• India is the first country in the world to mandate CSR spending along with a framework to identify potential CSR activities. Hence, Statement 1 is incorrect.
• The Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities. Hence, Statement 2 is incorrect.
• The CSR provisions within the Act are applicable to companies with an annual turnover of 1,000 crores and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crores and more.
• The Act requires companies to set up a CSR committee that shall recommend a Corporate Social Responsibility Policy to the Board of Directors and also monitor the same from time to time.

Additional Information

• Any donation to the PM CARES Fund will quantify as CSR.
  • The Chief Minister’s Relief Fund or State Relief Fund for Covid-19 is not included in Schedule VII of the Companies Act, 2013, and therefore any contribution to such funds shall not qualify as admissible CSR expenditure. Hence, Statement 3 is incorrect.
  • Schedule VII of the Companies Act, 2013 provides the list of activities that can be included in CSR.
  • However, donations to the State Disaster Management Authority to combat Covid-19 can be counted as admissible CSR expenditure.

The correct answer is Authoritarian.

Key Points

• Democratic:
  • In this style, leaders often consult team members and consider their opinions before making a final decision.
  • It promotes the sharing of responsibilities and consensus-building.
• Authoritarian:
  • Here, the leader makes decisions unilaterally without much input from team members.
  • It’s often efficient in scenarios where quick decision-making is critical but may reduce creativity and team satisfaction.
• Laissez-faire:
  • This leadership style offers little or no guidance to group members and leaves decision-making up to team members.
  • It can be effective when team members are highly skilled and motivated.
• Transformational:
  • Leaders inspire and motivate their team to achieve extraordinary outcomes by fostering a company vision, with high levels of communication from the leader to the followers.
• Transactional:
  • This style is based on transactions or exchanges between the leader and the followers.
  • It involves setting clear objectives and goals for the followers as well as the use of rewards or disciplinary actions.

The correct answer is General Reserve.

Key Points

• Cash: It is incorrect because the issuance of bonus shares involves no cash transaction.
• General Reserve: It is correct as it represents profits set aside over the years and can be converted into share capital through bonus shares.
• Share Capital: This account is credited, not debited, in the process of issuing bonus shares.
• Securities Premium: It is used when shares are issued at a premium, not typically debited for bonus shares.

The correct answer is Unemployment.

Important Points

• Statistics related to the unemployment rate (UR), labor force participation rate (LFPR) and worker population ratio (WPR) released by the Labour Bureau of India have been added to the States of India service.
• The survey categorizes a person into either of the three activity categories:
  • Working or being engaged in ‘economic activity.
  • Not working, but making tangible efforts to seek ‘work’ or being available for ‘work’ if ‘work’ is available.
  • Being not engaged in any economic activity (work) and also not available for ‘work’.
• The usual Principal Status (UPS) approach relates to the activity status of a person during the 365 days preceding the date of the survey.
  • The activity status on which a person has spent a relatively long time (183 days or more) during the period is considered the usual principal activity status of the person.
  • A person unemployed under this approach indicates chronic unemployment.
• The usual Principal Status and Subsidiary Status approach is an extension to the principal status approach.
  • If a person has engaged in any economic activity for a period of 30 days or more during the preceding 365 days a person is considered as employed under this approach.

Additional Information

• GDP stands for Gross Domestic Product.
  • The meaning of GDP is the measure of the value of the economic activity within the country.
  • In simpler words, GDP is defined as the sum of the final prices of the goods and services produced in an economy in a given period.
• Inflation is defined as a situation where there is a sustained, unchecked increase in the general price level and a fall in the purchasing power of money.
  • Thus, inflation is a condition of price rise.
  • The reason for price rise can be classified under two main heads : (1) Increase in demand (2) Reduced supply.

The correct answer is 2005.

Money Laundering:

• When a person generates a large amount of money through illegal activities like smuggling, terrorist funding etc. The money generated is called Dirty Money.
• Money Laundering is the process of conversion of 'dirty money', to make it appear as 'legitimate' money.
• Prevention of Money-Laundering Act((PMLA), 2002 is the legal framework in India to prevent Money Laundering
• PMLA and the Rules notified there under came into force with effect from July 1, 2005.
• The act was amended in the year 2005, 2009, 2012 and 2018

The correct answer is Current costs plus cost of beginning work-in-process inventory.

Key Points

Weighted Average method of process costing:

When using the weighted average method, we divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. In this calculation, the cost of goods available for sale is the sum of beginning inventory and net purchases. This weighted average figure is then used to assign a cost to both ending inventory and the Cost Of Goods Sold.

Equivalent Units:

• Equivalent units are used to describe how much work has been done on a set of physical goods.
• To simply calculate equivalent units, you can multiply the number of physical items by the percentage of the work done on them. For two items that are 50% done, you would have one equivalent unit (2 x 50% = 1).

Important Points

The main difference between FIFO method and average method is that units of opening work in process and their cost are taken in full under average method, while under FIFO method only the remaining work done now is considered.

Under Weighted Average Method

manufacturing cost per equivalent unit = current cost + cost of beginning work-in-process inventory.

The correct answer is Primary Deficit.

Key Points

• The primary Deficit is measured by subtracting the interest payments from the fiscal deficit.
• Primary Deficit = Fiscal Deficit - Interest Payments
• Primary deficit is a measure of the current year's fiscal operation after excluding the liability of interest payment created due to borrowings of the past.
• Primary deficit is considered a tool in the process of bringing in more transparency in the government’s expenditure pattern.

Additional Information

• Revenue Deficit: Difference between total revenue expenditure and total revenue receipts.
• Budget Deficit: Difference between total expenditure and total receipts
• Monetised Deficit: Increase in the net RBI credit to the Union Government.

The correct answer is Feedback absence.

Key Points

• Nomenclature complexity, or the complexity of language used, can be a barrier in any communication direction but isn't specific to downward communication.
• The absence of a feedback loop in downward communication can lead to misinterpretation and lack of engagement as recipients may not be able to ask for clarification or express concerns.
• Geographical distance affects all forms of communication, particularly in spreading a consistent message across widespread locations.
• Personal biases impact all communication directions by affecting the sender's message clarity and the receiver's interpretation.
• System incompatibilities, referring to technological mismatches, can hinder communication flow in any direction, not just downward.

The correct answer is Journal entry.

Key Points

• Balance Sheet: Shows the company's financial position at a specific point in time, not a document for transaction initiation.
• Sales Invoice, Purchase Order, Cash Receipt: These are evidence of transactions that need to be recorded but themselves are not the start of the recording process.
• Journal Entry: The actual act of entering a transaction into the accounting records, making it the initiation of the recording process.

The correct answer is Fiscal Deficit to GDP ratio.

Key Points

• The FRBM Act primarily targets the reduction of the Fiscal Deficit to GDP ratio to ensure long-term economic stability through responsible fiscal practices.
• Direct Tax Revenue is a source of government revenue, not a target for reduction under FRBM.
• Disinvestment Receipts are also a source of revenue rather than a reduction target.
• While external borrowings might be indirectly affected, the act specifically focuses on the overall fiscal deficit.
• Non-tax revenue, like Direct Tax Revenue, is a revenue source, not a direct target for reduction under FRBM.

The correct answer is Company limited by guarantee.

Key Points

• The company limited by guarantee can be either a private limited company or a public limited company also, where the capital is not divided into shares.
• Here, the capital to be introduced by the members is in the nature of the guarantee.
• The subscriber to the Memorandum subscribes to the amount guaranteed and puts signature against the amount guaranteed.
• Here, the percentage of the ownership is based on the amount guaranteed.
• Whenever the requirement of capital arises, the members introduce the capital to the company.
• The liability of members is limited up to the amount of guarantee provided only.
• These companies can also issue shares, where the shareholders are also liable up to the amount unpaid on the shares as discussed above.
• However, shareholding is not the criteria for deciding ownership.
• In an unlimited company, the liability of the members is not limited. In case any debt arises, the liability of the members does not limit to their part in the company, rather it extends to their personal assets also.

Additional Information

• Foreign companies are owned by foreigners. An entity is registered as a foreign company when foreign participation in shareholding increases to more than 50%. Businesses registered outside India find it the most accessible way to set up business in India.
• In Company limited by shares, the capital is introduced in the form of Shares i.e. the capital of the company is divided into a small portion, known as shares. In this type of company, the liability of the members is limited up to the unpaid capital on the shares subscribed.
• A type of Private Company itself, One Person Company is commonly known as OPC. In OPC, there is only 1 member at any time during its existence. Here, this member must be an individual and an Indian resident.