SEBI Grade A (General Stream) Mock Test - 1 - Bank Exams MCQ

The Correct Answer is Bangladesh.

In News

• Bangladesh to host 24th Asian Archery Championships in 2025.

Key Points

• Bangladesh will host the 24th Asian Archery Championships in 2025 after winning by 14-10 votes in the bid at the World Archery Asia Congress held in Bangkok, Thailand.
• A total of twenty four member countries of the Asian continent participated in the congress.
• Bangladesh and China applied for bids as host countries for the 24th Asian Archery Championship.
• The 23rd Asian Archery Championship organised in Bangkok, Thailand.

The correct answer is Option 1, i.e. Companies Act, 1956

• Non-Banking Financial Company (NBFC) is a registered company under the Companies Act, 1956.
• These are involved in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by the government or local authorities or other marketable securities of like nature, leasing, hire-purchase, insurance business, chit business.
• Following are few important Acts related to banking and finance :

The correct answer is 1, 2, and 3.

In News

• The market capitalization of companies listed on BSE has crossed $5 trillion for the first time.
• Currently, only four stock markets in the world are in the $5-trillion-plus club.
• The surge in market capitalization was primarily driven by a surge in broader market indices.

Key Points

• The market capitalization of companies listed on BSE has crossed $5 trillion for the first time.
• Only four stock markets the world over are in the $5-trillion-plus club, namely, the USA, China, Japan, and Hong Kong.
• The surge in the market capitalization of Indian equities was primarily driven by a surge in broader market indices.
• India's market capitalization has risen nearly 12%, while for the US it has gone up by 10%, and Hong Kong's has risen 16%.

Additional Information

• Market capitalization
  • Only four stock markets are in the $5-trillion-plus club: USA, China, Japan, and Hong Kong.
  • The surge was driven by a rise in broader market indices.

The Correct Answer is Lord Shiva.

In News

• Portion of Virupaksha Temple in Hampi collapses after Heavy Rainfall.

Key Points

• A small portion of the 'Salu Mantapa' at the 'Ratha Beedi' of the renowned Virupaksha Temple in Hampi has collapsed following heavy rainfall.
• The Virupaksha Temple in Hampi, Karnataka, is one of the oldest temples still in use in India.
• It was built around the year 700 AD and is dedicated to Lord Shiva.
• Vijayanagara Dynasty's capital Hampi was declared World Heritage Site by UNESCO in 1986.

The correct answer is Skyroot Aerospace

In News

• Skyroot Aerospace, a Hyderabad-based space technology company, successfully test-fired Stage-2 of its Vikram-1 orbital rocket, known as Kalam-250.

Key Points

• The test took place at ISRO’s propulsion testbed in Sriharikota.
• This achievement is a significant milestone towards India’s first private orbital rocket launch, following Skyroot’s suborbital space launch of the Vikram-S in November 2022.
• The 85-second test recorded a peak sea-level thrust of 186 kilonewtons (kN), expected to be around 235kN during flight.
• The Kalam-250 rocket features a high-strength carbon composite rocket motor using solid fuel and an Ethylene-Propylene-Diene terpolymers (EPDM) thermal protection system (TPS).
• It includes a carbon ablative flex nozzle and electro-mechanical actuators for thrust vector control, crucial for achieving the desired trajectory during ascent.

The correct answer is Rapid growth of the Indian banking system.

Key Points

• The given passage is about the Indian Financial System.
• Let us refer to the line from the passage, "After independence, the Indian banking system has recorded rapid growth. This was due to economic planning, increase in money supply, growth of banking sector, control and guidance by the RBI and nationalization of banks in July 1969".
• From the given line we get to know after independence, there was an increase in money supply, economic planning and proper guidance of RBI and nationalization of all banks in July 1969 lead to rapid growth in the Indian banking system.
• So, ​'Rapid growth of the Indian banking system' is the correct option.

The correct answer is 'A.'

Key Points

• The correct sequence of the segments after rearrangement is AECBD.
  • The sentence 'A' is independent of any other sentence as it introduces the topic of ''The discovery of cosmic microwave background radiation.'' Hence, 'A' is the first part.
  • Sentence E will come after A as it is giving information about when and who discovered cosmic background radiation i.e. in 1964 by US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson.
  • Sentence C will come after E as it gives further information about where and when cosmic background radiation was accepted or needed.
  • Sentence B will come after C as it is talking about a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941.
  • The sentence 'D' is the concluding or final part as it concludes by saying that the significance of the measurement of the cosmic background radiation by Andrew McKellar was understood later after the Penzias and Wilson measurements.

Hence, the correct answer is option 4.

Paragraph after rearranging the sentences: The discovery of cosmic microwave background radiation constitutes a major development in modern physical cosmology. In 1964, US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson discovered the CMB, estimating its temperature as 3.5 K, as they experimented with the Holmdel Horn Antenna. The new measurements were accepted as important evidence for a hot early Universe and as evidence against the rival steady-state theory as theoretical work around 1950 showed the need for a CMB for consistency with the simplest relativistic universe models. There had been a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941 at an effective temperature of 2.3 K using CN stellar absorption lines observed by W. S. Adams. Although no reference to the CMB is made by McKellar, it was not until much later after the Penzias and Wilson measurements that the significance of this measurement was understood.

The correct answer is 'B.'

Key Points

• The correct sequence of the segments after rearrangement is AECBD.
  • The sentence 'A' is independent of any other sentence as it introduces the topic of ''The discovery of cosmic microwave background radiation.'' Hence, 'A' is the first part.
  • Sentence E will come after A as it is giving information about when and who discovered cosmic background radiation i.e. in 1964 by US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson.
  • Sentence C will come after E as it gives further information about where and when cosmic background radiation was accepted or needed.
  • Sentence B will come after C as it is talking about a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941.
  • The sentence 'D' is the concluding or final part as it concludes by saying that the significance of the measurement of the cosmic background radiation by Andrew McKellar was understood later after the Penzias and Wilson measurements.

Hence, the correct answer is option 1.

Paragraph after rearranging the sentences: The discovery of cosmic microwave background radiation constitutes a major development in modern physical cosmology. In 1964, US physicist Arno Allan Penzias and radio-astronomer Robert Woodrow Wilson discovered the CMB, estimating its temperature as 3.5 K, as they experimented with the Holmdel Horn Antenna. The new measurements were accepted as important evidence for a hot early Universe and as evidence against the rival steady-state theory as theoretical work around 1950 showed the need for a CMB for consistency with the simplest relativistic universe models. There had been a prior measurement of the cosmic background radiation (CMB) by Andrew McKellar in 1941 at an effective temperature of 2.3 K using CN stellar absorption lines observed by W. S. Adams. Although no reference to the CMB is made by McKellar, it was not until much later after the Penzias and Wilson measurements that the significance of this measurement was understood.

The correct answer is option 1.

Key Points

• From the given options, only the combination of phrases 'AD and BF' creates correct sentences.
• Let's look at the sentences:
  • 'AD' talks about the fact that not only did they move abroad, but they also sold all their belongings.
  • 'BF' states that not only did they find a great place to live in, but they also decorated it beautifully.

Hence, the correct answer is option 1.

Solution :

The series follows the following pattern :

⇒2³ = 8

⇒4² = 16

⇒6³ = 216

⇒8² = 64

⇒10³ = 1000

⇒12² = 144

⇒ The wrong term in the series will be 146 .

Hence 146 is the correct answer.

Given:

Principle = 20000

Rate of interest = 10%

Time = 2 years

Formula used:

Amount = P (1 + r/100)ⁿ

P = principle, r = rate of interest, n = number of times interest is credited

Calculations:

In yearly basis,

Amount = 20000 (1 + 10/100)² = 24200

∴ Interest = 24200 – 20000 = 4200

In half yearly basis,

Interest rate for 6 months = 10/2 = 5%

Number of terms = 4

Amount = 20000 (1 + 5/100)⁴ = 24310.125

∴ Interest = 24310.125 – 20000 = 4310.125

∴ Required difference = (4310.125 - 4200) = 110.125

Given:

In a group there are 7 men and 3 women, a committee of 4 is to be selected such that it contains at least 1 men and 1 women

The concept used:

Permutations and Combinations

Formula used:

ⁿC_r = n! /r! (n - r)!

ⁿC_n = 1

ⁿC₁ = n

ⁿC_r = ⁿC_n-_r

Calculation:

We may have (1 man and 3 women) or (2 men and 2 women) or (3 men and 1 women)

In the 1st possibility, total number of combinations = ⁷C₁ × ³C₃

In the 2nd possibility, total number of combinations = ⁷C₂ × ³C₂

In the 3rd possibility, total number of combinations = ⁷C₃ × ³C₁

But only one of the above possibilities will occur; 1^st or 2^nd or 3^rd.

So the total number of required combinations is

⇒ (⁷C₁ × ³C₃) + (⁷C₂ × ³C₂) + (⁷C₃ × ³C₁)

⇒ (7 × 1) + (21 × 3) + (35 × 3)

⇒ 7 + 63 + 105

⇒ 175

Total number of chair before increased = 450 + 1200 + 250 + 1000 = 2900

Total number of chair after increased = 2900 + 10% of 2900 = 2900 + 290 = 3190

Total number of pen = 850 + 950 + 550 + 1050 = 3400

∴ Required ratio = 3400 : 3190 = 340 : 319

Concept used:

Follow BODMAS rule to solve this question, as per the order given below

Calculations:

20% of 420 – % of ? = 25 × 42 ÷ 15

⇒ (20/100) × 420 – (100/300) of ? = 1050 ÷ 15

⇒ 84 – ?/3 = 70

⇒ ?/3 = 14

⇒ ? = 42

∴ The value of ? is 42

Concept used:

Follow the BODMAS rule to solve this question, as per the order given below

Calculations:

14 × 23 + ?2 + 10% of 1910 = 25% of 6148

⇒ 322 + ?² + (10/100) × 1910 = (25/100) × 6148

⇒ 322 + ?² + 191 = 1537

⇒ ?² = 1537 – 513

⇒ ?² = 1024

⇒ ? = √1024 = 32

∴ The value of ? is 32

1. The train with Wiring is delivered four days before the train H which is delivered two days after the train with Insulation.

2. The train | delivered immediately before the train with Insulation. The leave is planned on the day before the delivery of the train H and after the train I.

3. The train J, which is not delivered after leave, delivers immediately after the delivery of the train with Lumber which is not delivered after the train with Wiring. Hence, case 1 gets eliminated.

4. The train G delivers three days before the train K which is not delivered on the last day of the week. Hence, case 3 gets eliminated.

5. The train with Gravel is delivered immediately before the train with Glass. Hence, Case 3a gets eliminated.

Final arrangement

Glass material is delivered on the last day of the week

Forward Pairs - NS, IN

Backward Pairs - IM, NO

Thus, there are four such pairs of letters in the word “TRANSMISSION” which have as many letters between them as in the English alphabetical series (both in forward and backward directions).

Hence, the correct answer is Four.

Given:

Eight persons: P, Q, R, S, T, U, V, and W

1) Only three persons are designated between Q and S, where S is junior to Q.

2) V is two posts senior to Q.

3) Only one person is designated between U and W.

4) As many persons senior to U is same as the persons junior to V.

5) Neither R nor P is the Principal.

6) P is three posts junior to T but is not HOD. U is senior to S.

After arranging as per 5th and 6th point, the case - 1 gets eliminated.

So, the final arrangement is:

Hence, 'the one who is Principal' is related to W.

Given word - INCOMPREHENSIBILITY

The alphabetical series,

1) All the consonants are replaced by the previous letter and all vowels to the next letter;

Given word: I N C O M P R E H E N S I B I L I T Y

After replacement: J M B P L O Q F G F M R J A J K J S X

After arranging them in alphabetical order: A B F F G J J J J K L M M O P Q R S X

2) Sum of the place value letters which is Fifth and Ninth from the left and right end respectively, i.e; G and L which are 7th and 12th letters in the alphabetical series.

Hence, 19 will be the sum.

Given:

We use the following symbols to denote the relation between parties:

1. The father-in-law of S, who is married to the son of U, has 2 grandchildren of the same gender.

2. X is the sister of R, who is the son of O.

3. R has 2 daughters.

4. Q is married to W.

5. T is the sister-in-law of P, who is married to V.

6. U is the mother of X.

7. Q is the father of S.

Combining all of them together, we get:

Hence, there are 4 males in the family.

The correct answer is Kaizen

Key Points

• Kaizen emphasizes small, incremental changes that continuously improve processes and reduce waste.
• Just-in-Time (JIT) focuses on producing only what is needed, when it is needed.
• Six Sigma aims to reduce defects and improve quality through rigorous data analysis.
• Total Productive Maintenance (TPM) involves proactive and preventive maintenance to improve equipment efficiency.
• Cellular Manufacturing involves organizing production workstations in a sequence that supports a smooth flow of materials and components.

Additional Information

• Just-in-Time (JIT)
  • A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs.
• Six Sigma
  • A set of techniques and tools for process improvement aimed at reducing defects and variability.
• Total Productive Maintenance (TPM)
  • Focuses on maintaining and improving the integrity of production and quality systems through proactive and preventive maintenance.
• Cellular Manufacturing
  • Organizes the production floor into small, self-contained units (cells) that include all necessary resources to complete a product.

The correct answer is 1 and 3 only

Key Points

• PPPs involve a partnership where both public and private sectors share risks and rewards.
• The private sector often brings in efficiency, innovation, and funding.
• Financial risk in PPP projects is typically shared between public and private entities, not borne solely by the private sector.
• PPPs aim to improve the quality and efficiency of public services through private sector involvement.

The correct answer is Variance

Key Points

• Variance analysis helps in identifying the reasons for differences between standard costs and actual costs.
• Margin refers to the difference between sales revenue and cost of goods sold.
• Overhead includes indirect costs associated with production.
• Contribution refers to the difference between sales revenue and variable costs.
• Absorption costing includes all manufacturing costs, both fixed and variable, in the cost of a product.

Additional Information

• Variance
  • A variance is the difference between a standard cost and the actual cost, analyzed to understand the reasons for the deviation.
• Margin
  • The difference between sales revenue and cost of goods sold, representing the gross profit.
• Overhead
  • Indirect costs associated with production, such as utilities, rent, and administrative expenses.
• Contribution
  • The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and profit.
• Absorption Costing
  • Includes all manufacturing costs, both fixed and variable, in the cost of a product.

The correct answer is Laissez-faire

Key Points

• Laissez-faire leadership allows team members to take control of their work, fostering creativity and innovation.
• This style works well when employees are self-motivated and require little supervision.
• Leaders provide support and resources but avoid interfering with the team's processes.
• It can lead to high job satisfaction and empowerment among team members.

Additional Information

• Autocratic Leadership
  • Effective in crisis situations where quick decision-making is required.
• Democratic Leadership
  • Involves team members in decision-making, fostering collaboration and consensus.
• Transactional Leadership
  • Focuses on exchanges between leader and followers, effective for achieving specific tasks and goals.
• Transformational Leadership
  • Motivates and inspires followers to achieve extraordinary outcomes and bring about change.

The correct answer is Revenue Recognition Method

Key Points

• Revenue Recognition Method is used for determining when revenue should be recognized in the financial statements.
• It is governed by separate accounting standards, specifically related to revenue.
• Depreciation methods like Straight Line, Reducing Balance, Units of Production, and Sum of Years' Digits are methods to allocate the cost of an asset over its useful life.
• Each depreciation method has a different approach to calculating annual depreciation expense.

Additional Information

• Straight Line Method
  • Depreciation is calculated by dividing the cost of the asset by its useful life.
• Reducing Balance Method
  • Depreciation is calculated by applying a fixed percentage to the carrying amount of the asset each year.
• Units of Production Method
  • Depreciation is based on the actual usage of the asset, often measured in units produced or hours used.
• Sum of Years' Digits Method
  • Depreciation is calculated by applying a fraction of the depreciable amount, based on the sum of the years' digits.

The correct answer is Consumption

Key Points

• The consumption function shows how changes in disposable income affect consumption levels.
• Investment function relates to the relationship between investment and interest rates.
• Production function represents the relationship between input factors and output.
• Savings function shows the relationship between savings and disposable income.
• The multiplier effect describes how an initial change in spending leads to a larger change in national income.

Additional Information

• Consumption Function
  • Shows the relationship between consumption (C) and disposable income (Yd), typically represented as C = a + bYd.
• Investment Function
  • Relates to the relationship between investment (I) and interest rates (r), often represented as I = I(r).
• Production Function
  • Shows the relationship between input factors (e.g., labor, capital) and output (Q), represented as Q = f(L, K).
• Savings Function
  • Shows the relationship between savings (S) and disposable income (Yd), typically represented as S = -a + (1 - b)Yd.
• Multiplier Effect
  • Describes how an initial change in spending leads to a larger change in national income, represented as 1/(1 - MPC), where MPC is the marginal propensity to consume.

The correct answer is 1, 2, and 3

Key Points

• Chapter X mandates the rotation of auditors to ensure independence and objectivity in the audit process.
• An auditor is typically appointed for a term of five years, with the possibility of reappointment based on compliance with the rotation requirements.
• Auditors are required to attend annual general meetings (AGMs) to answer shareholder questions regarding the audit and financial statements.
• This ensures transparency and accountability in the company's financial reporting and audit process.

Additional Information

• Rotation of Auditors
  • Mandatory for listed companies to prevent long-term associations that could impair auditor independence.
• Term of Appointment
  • An auditor is appointed for a term of five years, with potential reappointment subject to rotation rules.
• Annual General Meeting (AGM)
  • Auditors must attend the AGM to address any questions regarding their audit report, ensuring transparency and accountability.

The correct answer is INR 10 crore

Key Points

• Chapter XII mandates the constitution of an Audit Committee for companies with significant paid-up capital to ensure proper financial oversight.
• The Audit Committee is responsible for overseeing the financial reporting process, internal controls, and audit functions.
• The threshold for constituting an Audit Committee is set at a paid-up capital of INR 10 crore or more.
• This requirement aims to enhance corporate governance and accountability in companies with substantial financial resources.

Additional Information

• Audit Committee
  • A committee is responsible for overseeing the company's financial reporting, internal controls, and audit functions.
• Threshold Requirement
  • The requirement to constitute an Audit Committee applies to companies with a paid-up capital of INR 10 crore or more.
• Corporate Governance
  • Enhanced corporate governance practices are promoted through the establishment of an Audit Committee.

The correct answer is 1 and 2 only.

Key Points

• HRD focuses on both personal and professional growth, ensuring employees develop the skills needed for current and future job requirements.
• The primary goals of HRD include improving organizational effectiveness, enhancing employee satisfaction, and fostering career development.
• HRD practices include training and development programs, performance appraisals, career planning, and succession planning.
• Statement 3 is incorrect as training and development programs are a fundamental component of HRD.

The correct answer is WPI is used to measure inflation at the producer level, while CPI measures inflation at the consumer level

Key Points

• The Wholesale Price Index (WPI) tracks changes in the prices of goods at the wholesale level, which is the price at which goods are sold in bulk and typically to retailers.
• The Consumer Price Index (CPI) tracks changes in the prices of goods and services at the retail level, reflecting the prices paid by consumers.
• WPI does not include services, while CPI includes both goods and services.
• CPI is the preferred measure for setting monetary policy, as it reflects the inflation experienced by consumers.

Additional Information

• Wholesale Price Index (WPI)
  • Measures changes in the prices of goods at the wholesale level, providing an indication of price changes at the producer level.
• Consumer Price Index (CPI)
  • Measures changes in the prices of goods and services at the retail level, reflecting the cost of living for consumers.
• Basket of Goods and Services
  • WPI and CPI include different baskets of goods and services, tailored to their respective measurements of producer and consumer inflation.