SBI CBO Mock Test - 1 - Bank Exams MCQ

"Adequate" means satisfactory or sufficient. It fits:

• Sentence 1: "Adequate" (meets nutritional needs).
• Sentence 2: "Adequate" (satisfactory job).
• Sentence 3: "Adequate" (sufficient protection).
• Sentence 4: "Perfectly adequate" is grammatically correct but less natural, as "adequate" implies sufficiency, not perfection.

 "Adequate" fits 3 of 4 sentences best. Therefore, Correct Answer is Option B.

One word substitution is Dotage.

Imbecility: Stupid or insane behaviour.

Youth: The period between childhood and adult age.

Dotage: The period of life in which a person is old and weak, especially with some loss of mental ability.

Superannuation: Regular payment made into a fund by an employee towards a future pension.

After being driven to the museum, Professor Kumar was dropped at his hotel.

In times of economic crisis, the nagging sense about universities could be option 2 or 4. During economic crisis it does not make sense to say that people are 'studying' to make ends meet, 'struggling' makes better sense.

I remember being taken to the museum by my sister.

V1 (Ist form of verb) + ing in Active Voice changes to ‘being + V3’ (IIIrd form of verb) in Passive Voice.
 

as in a small one

He has been working in

The Reserve Bank of India was set up based on the recommendations of the Hilton Young Commission.

Net asset value:

• The net asset value (NAV) is the total value of an entity's assets minus the entire value of its liabilities, and it represents the entity's net worth.
• The NAV indicates the per share/unit price of a mutual fund or an exchange-traded fund (ETF) on a certain date or time and is most typically used in the context of a mutual fund or an exchange-traded fund (ETF).
• The NAV is the price at which shares/units of funds registered with the Securities and Exchange Commission (SEC) in the United States are exchanged (invested or redeemed).

A Development Financial Institution (DFI)

• It is defined as “an institution endorsed or supported by the Government of India primarily to provide development/Project finance to one or more sectors or sub-sectors of the economy.
• India’s first DFI was operationalized in 1948 and it set up State Financial Corporations (SFCs) at the state level after passing of the SFCs Act, 1951, succeeded by the development of the Industrial Finance Corporation of India (IFCI).
• DFIs can be classified into four categories of institutions as per their functions:
  • National Development Banks e.g. IDBI, SIDBI, ICICI, IFCI, IRBI, IDFC
  • Sector-specific financial institutions e.g. TFCI, EXIM Bank, NABARD, HDFC, NHB
  • Investment Institutions e.g. LIC, GIC, and UTI
  • State-level Institutions e.g. State Finance corporations and SIDCs
  • Specialized development financial institutions (DFIs), such as Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India (IDBI), National Bank for Agriculture and Rural Development (NABARD), National Housing Board (NHB) and Small Industry Development Bank of India (SIDBI), with majority ownership of the RBI were launched to meet the long-term financing needs of industry and agriculture in India for driving growth in our economy post-independence.

Though, RBI does not engage in direct financing. There is no specific use of the term 'DFI' in either the RBI Act, 1934 or the Companies Act, 1956 or various statutes establishing DFIs.
Hence, Option 4 is the correct answer.

Payment and Settlement Systems constitute a major aspect of a country’s financial and economic structure. A payment system is a system that enables payment between two entities i.e. a payer and payee and constitutes clearing, settlement, or payment service.

Foreign Direct Investment involves establishing a direct business interest in a foreign country, such as buying or establishing a manufacturing business, building warehouses, or buying buildings.

• Money Market or Working Capital Market refers to the market for short-term requirements and deployment of funds.
• Money Markets instrument are those instruments which have a maturity period of less than one year.
• The money market does not deal in cash or money rather it provides a Marketplace for the different credit and financial instruments which includes treasury bills, promissory notes, bill of exchange etc, which are the close substitute of money.
• Different Instruments of Money Market:
  • Treasury bill
  • Commercial bills
  • Cash management bills(CMBs)
  • Certificates of Deposits (CDs)
  • Commercial Papers (CPs)
  • Money Market Mutual Funds (SEBI)
  • Repo/Reverse Repo Market
  • Discount And Finance House of India (DFHI)
• Money Market is regulated by both RBI and SEBI
• Note: Mostly Money market instruments are regulated by RBI except mutual funds which is regulated by the Securities and Exchange Board of India (SEBI)
• Cash Management Bills(CMBs) have the generic character of Treasury Bills.
• It means both serve the same purpose but Cash Management Bills are issued for maturities less than 91 days, while Treasury Bills are issued for maturity period of 91 days, 182 days and 364 days. Hence CMBs and Treasury Bills are not the same

• Liquid funds are a type of mutual fund that invests in securities with a residual maturity of up to 91 days.
• Investment is not tied up for a long time as liquid funds do not have a lock-in period.
• Return on investment in the liquid funds depends on the market performance.
• Mutual funds are governed by the Securities and Exchange Board of India (SEBI).
• The Securities and Exchange Board of India was established on April 12, 1992, in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
• Its headquarters is in Mumbai.
• Madhabi Puri Buch is the current chairman of SEBI.(March 2022)

• The co-operative bank is basically for the retail customers or cooperatives not for the large scale customers. It is also known as Bank of Cooperatives.
• It can be classified into two segments which are - 1) Urban Cooperative Banks and 2) Rural Cooperatives.
• Urban Cooperative Banks are monitored by RBI.
• Banking activities of Rural Cooperatives are regulated by a shared arrangement between RBI and NABARD.
• Headquarters of RBI and NABARD both are in Mumbai.

MMID is used as an identifier of mobile money.

External Commercial Borrowings are commercial loans raised by eligible resident entities from recognized non-resident entities.
The utilization of ECB proceeds is now permitted to satisfy general corporate purposes, working capital requirements, repayment of INR loans and for such on-lending purposes. ECBs cannot be used for investment in the stock market or speculation in real estate.
Hence, Only 1 and 2 us correct. 

EARLY INSURERS

• In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd, and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commenced business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years.
• The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. 

MALHOTRA COMMITTEE

• In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. 
• The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.

The Government of India has introduced several financial Inclusion schemes. They are
i. Basic Savings Bank Deposit Account (BSBDA)
ii. Lead Bank scheme
iii. PradhanMantri Jan DhanYojana (PMJDY)
iv. Business correspondents
v. Stand up India scheme

• Equity funds are the type of mutual funds that invest investors money in the stock market.
• Large-cap mutual funds - In large-cap funds, a large portion of the investment is done in companies with large market capitalization. Large-cap are big, well-established companies in the equity market. These companies are strong, reputable, and trustworthy. Large-cap companies generally are the top 100 companies in a market.
  • ​Large-cap funds have lower growth potential and give investors lower returns on investment as compared to mid and small-cap funds.
  • Such companies have capital worth 20,000 crores or more.
• Mid-cap mutual funds - In mid-cap funds, a large portion of the investment is done in companies with medium market capitalization.
  • It has better growth potential and gives investors higher returns on investment as compared to large-cap funds.
• Small-cap mutual funds - In small-cap funds, a large portion of the investment is done in companies with small market capitalization i.e. having a market cap of less than INR 500 crore.
  • It has exponential growth potential and gives investors high returns on investment.
• Equity-linked saving scheme(ELSS) - These funds provide tax savings to the investors and hence most popular among them.  But these funds have a lock-in period of 3 years.
  • Investors cannot redeem their money before the maturity date. 
  • It also provides an opportunity for long term capital appreciation.

On June 6, 2012, Union Bank of India, one of India's biggest public sector banks, launched India's first Truly Accessible and Talking ATM in Vastrapur, Ahmedabad, Gujarat, for the visually and physically impaired.

Based on the major activity undertaken by them, Financial Institutions (FIs) get classified into three broad categories:

• Term-lending institutions, whose main activity is direct lending by way of term loans and investments. IFCI Ltd., IDBI, IDFC Ltd., IIBI Ltd. comes under the term-lending institutions in India.
• Refinance institutions, such as the National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI) and National Housing Bank (NHB), which mainly extend refinance to banks as well as non-banking financial institutions and;
• Investment institutions such as Life Insurance Corporation (LIC), which deploy their assets largely in marketable securities.
• SBI and PNB are also term-lending institutions in India.

Von-Neumann first offered his idea for a computer system in 1945; this concept became known as the Von-Neumann Architecture. It had a Control Unit, Registers, an Arithmetic and Logical Memory Unit (ALU), and Inputs and Outputs.

As a message is divided into a number of packets, each packet can, if necessary, be sent by a different route across the internet. Packets can arrive in a different order than the order they were sent in. The Internet Protocol just delivers them. So, routing which is the process of moving data from one network to another by forwarding packets via gateways, is the correct answer.

In MS-Excel, without using the mouse or the arrow keys, the fastest way of getting to cell A1 is to press Ctrl+Home key in a spreadsheet.

The Advanced Research Projects Agency Network (ARPANET), the forerunner of the Internet, was a pioneering long-haul network funded by the U.S. Department of Defense's Advanced Research Projects Agency (ARPA).

Absolute Reference: A formulated cell reference that will not adjust when used to calculate the sum of specific cells. Most commonly used in spreadsheet applications.