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SBI CBO Mock Test - 4 - Bank Exams MCQ


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120 Questions MCQ Test Mock Test Series for SBI CBO Exam 2024 - SBI CBO Mock Test - 4

SBI CBO Mock Test - 4 for Bank Exams 2024 is part of Mock Test Series for SBI CBO Exam 2024 preparation. The SBI CBO Mock Test - 4 questions and answers have been prepared according to the Bank Exams exam syllabus.The SBI CBO Mock Test - 4 MCQs are made for Bank Exams 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for SBI CBO Mock Test - 4 below.
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SBI CBO Mock Test - 4 - Question 1

In the decades following World War II, American business had undisputed control of the world economy, producing goods of such high quality and low cost that foreign corporations were unable to compete. But in the mid-1960s the United States began to lose its advantage and by the 1980s American corporations lagged behind the competition in many industries. In the computer chip industry, for example, American corporations had lost most of both domestic and foreign markets by the early 1980s.

The first analysts to examine the decline of American business blamed the U.S. government. They argued that stringent governmental restrictions on the behaviour of American corporations, combined with the wholehearted support given to foreign firms by their governments, created and environment in which American products could not compete. Later analysts blamed predatory corporate raiders who bought corporations, not to make them more competitive in the face of foreign competition, but rather to sell off the most lucrative divisions for huge profits.

Still later analysts blamed the American workforce, citing labour demands and poor productivity as the reasons American corporations have been unable to compete with Japanese and European firms. Finally, a few analysts even censured American consumers for their unpatriotic purchases of foreign goods. The blame actually lies with corporate management, which has made serious errors based on misconceptions about what it takes to be successful in the marketplace.

These missteps involve labour costs, production choices, and growth strategies. Even though labour costs typically account for less than 15% of a product‘s total cost, management has been quick to blame the costs of workers‘ wages for driving up prices, making American goods uncompetitive. As a result of attempts to minimize the cost of wages, American corporations have had trouble recruiting and retaining skilled workers.

The emphasis on cost minimization has also led to another blunder: an over-concentration on high technology products. Many foreign firms began by specializing in the mass production and sale of low technology products, gaining valuable experience and earning tremendous profits. Later, these corporations were able to break into high technology markets without much trouble; they simply applied their previous manufacturing experience and ample financial resources to the production of higher quality goods.

American business has consistently ignored this very sensible approach.  The recent rash of corporate mergers and acquisitions in the U.S. has not helped the situation either. While American firms have neglected long-range planning and production, preferring instead to reap fast profits through mergers and acquisitions, foreign firms have been quick to exploit opportunities to ensure their domination over future markets by investing in the streamlining and modernization of their facilities.

Direction: Read the above Paragraph and answer the following Questions.
Q. The passage suggests that compared to Japanese workers, American workers are often considered:  

Detailed Solution for SBI CBO Mock Test - 4 - Question 1

Mapping the Passage:

  • Para 1 outlines the decline of American business.
  • Para 2 and 3 list reasons that analysts have given for the decline and introduce the author‘s own theory for American business problems: incompetent management.
  • Para 4 lists management‘s problems with labour.
  • Para 5 explains the problem with America's fixation on high-tech products.
  • Para 6 uses mergers to show that corporations lack long-range planning.

A quick scan of the answer choices shows that you have to compare the workers of the two nations on two criteria: contentedness and efficiency.
Search for a part of the passage that touches on this. Para 3 is the only one that cites Japan and mentions that analysts consider American workers less productive and less content. So Option (C) is correct.

SBI CBO Mock Test - 4 - Question 2

In the decades following World War II, American business had undisputed control of the world economy, producing goods of such high quality and low cost that foreign corporations were unable to compete. But in the mid-1960s the United States began to lose its advantage and by the 1980s American corporations lagged behind the competition in many industries. In the computer chip industry, for example, American corporations had lost most of both domestic and foreign markets by the early 1980s.

The first analysts to examine the decline of American business blamed the U.S. government. They argued that stringent governmental restrictions on the behaviour of American corporations, combined with the wholehearted support given to foreign firms by their governments, created and environment in which American products could not compete. Later analysts blamed predatory corporate raiders who bought corporations, not to make them more competitive in the face of foreign competition, but rather to sell off the most lucrative divisions for huge profits.

Still later analysts blamed the American workforce, citing labour demands and poor productivity as the reasons American corporations have been unable to compete with Japanese and European firms. Finally, a few analysts even censured American consumers for their unpatriotic purchases of foreign goods. The blame actually lies with corporate management, which has made serious errors based on misconceptions about what it takes to be successful in the marketplace.

These missteps involve labour costs, production choices, and growth strategies. Even though labour costs typically account for less than 15% of a product‘s total cost, management has been quick to blame the costs of workers‘ wages for driving up prices, making American goods uncompetitive. As a result of attempts to minimize the cost of wages, American corporations have had trouble recruiting and retaining skilled workers.

The emphasis on cost minimization has also led to another blunder: an over-concentration on high technology products. Many foreign firms began by specializing in the mass production and sale of low technology products, gaining valuable experience and earning tremendous profits. Later, these corporations were able to break into high technology markets without much trouble; they simply applied their previous manufacturing experience and ample financial resources to the production of higher quality goods. American business has consistently ignored this very sensible approach.

The recent rash of corporate mergers and acquisitions in the U.S. has not helped the situation either. While American firms have neglected long-range planning and production, preferring instead to reap fast profits through mergers and acquisitions, foreign firms have been quick to exploit opportunities to ensure their domination over future markets by investing in the streamlining and modernization of their facilities. 

Direction: Read the above Paragraph and answer the following questions.
Q. With which of the following general statements would the author most likely NOT agree?

Detailed Solution for SBI CBO Mock Test - 4 - Question 2

Mapping the Passage:

  • Para 1 outlines the decline of American business.
  • Para 2 and 3 list reasons that analysts have given for the decline and introduce the author‘s own theory for American business problems: incompetent management.
  • Para 4 lists management‘s problems with labour.
  • Para 5 explains the problem with America's fixation on high-tech products.
  • Para 6 uses mergers to show that corporations lack long-range planning.

An inference question; make sure that you‘re clear on the main points of the author‘s argument. Remember that the author will agree with four, but will disagree with the correct answer. The three wrong answers could be easily eliminated, leading to option (B).
However, you can also reason that since management has suffered by cutting labour costs, cost-cutting doesn‘t always result in lowered prices.

SBI CBO Mock Test - 4 - Question 3

In the decades following World War II, American business had undisputed control of the world economy, producing goods of such high quality and low cost that foreign corporations were unable to compete. But in the mid-1960s the United States began to lose its advantage and by the 1980s American corporations lagged behind the competition in many industries. In the computer chip industry, for example, American corporations had lost most of both domestic and foreign markets by the early 1980s.

The first analysts to examine the decline of American business blamed the U.S. government. They argued that stringent governmental restrictions on the behaviour of American corporations, combined with the wholehearted support given to foreign firms by their governments, created and environment in which American products could not compete. Later analysts blamed predatory corporate raiders who bought corporations, not to make them more competitive in the face of foreign competition, but rather to sell off the most lucrative divisions for huge profits.

Still later analysts blamed the American workforce, citing labour demands and poor productivity as the reasons American corporations have been unable to compete with Japanese and European firms. Finally, a few analysts even censured American consumers for their unpatriotic purchases of foreign goods. The blame actually lies with corporate management, which has made serious errors based on misconceptions about what it takes to be successful in the marketplace.

These missteps involve labour costs, production choices, and growth strategies. Even though labour costs typically account for less than 15% of a product‘s total cost, management has been quick to blame the costs of workers‘ wages for driving up prices, making American goods uncompetitive. As a result of attempts to minimize the cost of wages, American corporations have had trouble recruiting and retaining skilled workers.

The emphasis on cost minimization has also led to another blunder: an over-concentration on high technology products. Many foreign firms began by specializing in the mass production and sale of low technology products, gaining valuable experience and earning tremendous profits. Later, these corporations were able to break into high technology markets without much trouble; they simply applied their previous manufacturing experience and ample financial resources to the production of higher quality goods. American business has consistently ignored this very sensible approach.

The recent rash of corporate mergers and acquisitions in the U.S. has not helped the situation either. While American firms have neglected long-range planning and production, preferring instead to reap fast profits through mergers and acquisitions, foreign firms have been quick to exploit opportunities to ensure their domination over future markets by investing in the streamlining and modernization of their facilities.

Direction: Read the above Paragraph and answer the following questions.
Q.  Which of the following would most weaken the author‘s argument about the over-concentration on high technology products?  

Detailed Solution for SBI CBO Mock Test - 4 - Question 3

Mapping the Passage:

  • Para 1 outlines the decline of American business
  • Para 2 and 3 list reasons that analysts have given for the decline and introduce the author‘s own theory for American business problems: incompetent management.
  • Para 4 lists management‘s problems with labour.
  • Para 5 explains the problem with America's fixation on high-tech products.
  • Para 6 uses mergers to show that corporations lack long-range planning.

Paraphrase the author‘s argument about high technology: it‘s better to start out with low-tech, get experience, and then ramp up to high-tech.
Search the answer choices for something that would contradict this. Option (B) clearly does, if the processes are completely different, why start with low-tech.

SBI CBO Mock Test - 4 - Question 4

In the decades following World War II, American business had undisputed control of the world economy, producing goods of such high quality and low cost that foreign corporations were unable to compete. But in the mid-1960s the United States began to lose its advantage and by the 1980s American corporations lagged behind the competition in many industries. In the computer chip industry, for example, American corporations had lost most of both domestic and foreign markets by the early 1980s. The first analysts to examine the decline of American business blamed the U.S. government. They argued that stringent governmental restrictions on the behaviour of American corporations, combined with the wholehearted support given to foreign firms by their governments, created and environment in which American products could not compete. Later analysts blamed predatory corporate raiders who bought corporations, not to make them more competitive in the face of foreign competition, but rather to sell off the most lucrative divisions for huge profits. Still later analysts blamed the American workforce, citing labour demands and poor productivity as the reasons American corporations have been unable to compete with Japanese and European firms. Finally, a few analysts even censured American consumers for their unpatriotic purchases of foreign goods. The blame actually lies with corporate management, which has made serious errors based on misconceptions about what it takes to be successful in the marketplace. These missteps involve labour costs, production choices, and growth strategies. Even though labour costs typically account for less than 15% of a product‘s total cost, management has been quick to blame the costs of workers‘ wages for driving up prices, making American goods uncompetitive. As a result of attempts to minimize the cost of wages, American corporations have had trouble recruiting and retaining skilled workers. The emphasis on cost minimization has also led to another blunder: an over-concentration on high technology products. Many foreign firms began by specializing in the mass production and sale of low technology products, gaining valuable experience and earning tremendous profits. Later, these corporations were able to break into high technology markets without much trouble; they simply applied their previous manufacturing experience and ample financial resources to the production of higher quality goods. American business has consistently ignored this very sensible approach. The recent rash of corporate mergers and acquisitions in the U.S. has not helped the situation either. While American firms have neglected long-range planning and production, preferring instead to reap fast profits through mergers and acquisitions, foreign firms have been quick to exploit opportunities to ensure their domination over future markets by investing in the streamlining and modernization of their facilities.
Direction: Read the above Paragraph and answer the following questions.
Q. Which of the following best encapsulates the primary reason for the decline of American business competitiveness according to the passage?

Detailed Solution for SBI CBO Mock Test - 4 - Question 4

The passage outlines several theories that analysts have proposed to explain the decline of American business competitiveness, including government restrictions, corporate raiders, the American workforce, and consumer behavior. However, the passage concludes by stating that "the blame actually lies with corporate management," which has made "serious errors based on misconceptions about what it takes to be successful in the marketplace." These errors are specifically identified as missteps in labour costs, production choices, and growth strategies.

  • Option A is incorrect because it is mentioned as an early analysis, but the passage ultimately refutes this as the primary reason.
  • Option B is also mentioned as an analysis by later analysts, but again, the passage refutes this as the primary reason.
  • Option C is the correct answer because it is the conclusion drawn by the passage after considering and refuting other analyses.
  • Option D is incorrect because, although mentioned, it is not supported as the primary reason for the decline in competitiveness.
  • The passage clearly indicates that the primary reason for the decline in American business competitiveness is the strategic errors made by corporate management, making Option C the correct answer.
SBI CBO Mock Test - 4 - Question 5

Directions: Spot the error in the underlined part of the sentence and choose the correct sentence accordingly.

Though subjected to varying influences, the distinctive features of China's artistic activity possess a unity which is quite as complete as that of our Western art.

Detailed Solution for SBI CBO Mock Test - 4 - Question 5
  • There is no error in the original sentence nor does it need any improvement.
  • 'features' needs a plural verb 'possess'.
  • To establish comparison 'that of' is necessary.
SBI CBO Mock Test - 4 - Question 6

Finding a/an ____________ candidate for the job is not easy.

Detailed Solution for SBI CBO Mock Test - 4 - Question 6

The correct answer should be 'a' because in the question it is given that finding a/an.... that means the word should start with a vowel.

So, the correct answer is Appropriate.

SBI CBO Mock Test - 4 - Question 7

The national unity of a free people

P: to make it impracticable
Q: for there to be an arbitrary administration
R: depends upon a sufficiently even balance of political power
S: against a revolutionary opposition that is irreconcilably opposed to it

The Proper sequence should be:

Detailed Solution for SBI CBO Mock Test - 4 - Question 7

The correct order will be:
The national unity of a free people → depends upon a sufficiently even balance of political power (R)→ against a revolutionary opposition that is irreconcilably opposed to it (S)→ to make it impracticable (P)→ for there to be an arbitrary administration. (Q)

SBI CBO Mock Test - 4 - Question 8

Cars _________ to accommodate wheelchair users are vital to disabled people to get out and about and enjoy _________ lives.

Detailed Solution for SBI CBO Mock Test - 4 - Question 8

There is nothing in the context to justify healthy or itinerant (moving form place to place; wandering—like a salesperson) option 1 'enjoy their lives' is grammatically correct but logically it does not justify "to get out and about'—hence active is justified. Cars can be adapted, modified or designed. The best combination, however, is option 3.

SBI CBO Mock Test - 4 - Question 9

The rocket _____ the target and did not cause any casualty.         

Detailed Solution for SBI CBO Mock Test - 4 - Question 9

The correct answer is C: missed.
Explanation:
- The word "missed" means that the rocket did not hit the target.
- Since the sentence states that the rocket did not cause any casualty, it implies that the rocket did not reach or hit the target.
- The word "sensed" (option A) does not fit because it implies that the rocket detected something, which is not relevant to the sentence.
- The word "reached" (option B) does not fit because it implies that the rocket successfully hit the target.
- The word "exploded" (option D) does not fit because it implies that the rocket caused damage or destruction, which is contradictory to the sentence.
- The word "aimed" (option E) does not fit because it describes the intention or direction of the rocket, but not the outcome.
Therefore, the correct answer is C: missed, as it accurately describes the rocket not hitting the target and causing no casualties.
SBI CBO Mock Test - 4 - Question 10

His powerful desire brought about his downfall.

Detailed Solution for SBI CBO Mock Test - 4 - Question 10

His desire for power brought about his downfall.

SBI CBO Mock Test - 4 - Question 11

"He must not (to be left) like this."

Detailed Solution for SBI CBO Mock Test - 4 - Question 11

The modal verb “must” is followed by the past participle form of the verb. Therefore “to be left” is replaced by “be left”.

SBI CBO Mock Test - 4 - Question 12

DirectionsIn questions given below out of four alternatives, choose the one which can be substituted for the given word/sentence.

Q. A style in which a writer makes a display of his knowledge.

Detailed Solution for SBI CBO Mock Test - 4 - Question 12

One word substitution is Pedantic.

Pedantic: Excessively concerned with minor details or rules.

Verbose: Using or expressed in more words than are needed.

Pompous: Self-important, arrogant.

Ornate: Elaborately or highly decorated.

SBI CBO Mock Test - 4 - Question 13

Do you imitate others?

Detailed Solution for SBI CBO Mock Test - 4 - Question 13

 As per the given above sentence is given in Passive Voice. 
Are others imitated by you? 
Therefore , option B will be correct answer .

SBI CBO Mock Test - 4 - Question 14

Directions: Spot the error in the underlined part of the sentence and choose the correct sentence accordingly.

In the fission reactions that nuclear power generation rely on today, heavy elements breaks into smaller ones.

Detailed Solution for SBI CBO Mock Test - 4 - Question 14

This is a pure subject-verb agreement question. The subject 'nuclear power generation' requires the singular verb 'relies' and 'heavy elements' requires the plural verb 'break'.

SBI CBO Mock Test - 4 - Question 15

You can always rely on Alex. He is very _____________.

Detailed Solution for SBI CBO Mock Test - 4 - Question 15

Dependable means trustworthy and reliable.

SBI CBO Mock Test - 4 - Question 16

The grocer

P: did not listen to the protests of customer
Q: who was in the habit of weighing less
R: whom he had cheated
S: with great audacity

The Proper sequence should be:

Detailed Solution for SBI CBO Mock Test - 4 - Question 16

The correct order will be:
The grocer → who was in the habit of weighing less (Q)→ did not listen to the protests of customer (P)→ whom he had cheated (R)→ with great audacity. (S)

SBI CBO Mock Test - 4 - Question 17

Print, paper, and newspapers enabled the rise of new types of ____based on expanded popular participation.

Detailed Solution for SBI CBO Mock Test - 4 - Question 17

'based on expanded popular participation' and 'print, paper, and newspaper' (media) control the word in the blank. Political systems relate to both, whereas all the other options are not necessarily related to one or the other.

SBI CBO Mock Test - 4 - Question 18

You must ensure the correctness of the information before _____ to conclusion.        

Detailed Solution for SBI CBO Mock Test - 4 - Question 18
Correct Answer:

D: jumping


Explanation:

Before coming to a conclusion, it is important to ensure the correctness of the information. This means that one should carefully evaluate and verify the information before making any final judgments or decisions. The options provided are:



  • A: drawing - Drawing refers to creating a picture or visual representation. This is not the correct option as it does not relate to the act of evaluating or verifying information.

  • B: enabling - Enabling means to facilitate or make something possible. This is not the correct option as it does not relate to the act of evaluating or verifying information.

  • C: leaning - Leaning refers to inclining or resting against something for support. This is not the correct option as it does not relate to the act of evaluating or verifying information.

  • D: jumping - Jumping refers to making a sudden movement or decision without careful consideration. This is not the correct option as it contradicts the idea of ensuring correctness before coming to a conclusion.

  • E: examining - Examining means to carefully inspect or investigate something. This is the correct option as it aligns with the idea of evaluating and verifying information before reaching a conclusion.


Therefore, the correct answer is D: examining.
SBI CBO Mock Test - 4 - Question 19

He sent a word to me that he would be coming late.

Detailed Solution for SBI CBO Mock Test - 4 - Question 19

He sent word to me that he would be coming late.

SBI CBO Mock Test - 4 - Question 20

" I'm (having to) too much fun."

Detailed Solution for SBI CBO Mock Test - 4 - Question 20

“Having to” implies that one has to do something. In the given sentence, “to” is not needed. Hence, having to should be replaced by having

SBI CBO Mock Test - 4 - Question 21

DirectionsIn questions given below out of four alternatives, choose the one which can be substituted for the given word/sentence.

Q. List of the business or subjects to be considered at a meeting.

Detailed Solution for SBI CBO Mock Test - 4 - Question 21

One word substitution is Agenda.

Schedule: A plan for carrying out a process or procedure, giving lists of intended events and times.

Timetable: A chart showing the departure and arrival times of trains, buses, or aircraft.a chart showing the departure and arrival times of trains, buses, or aircraft.

Agenda: A list of items to be discussed at a formal meeting.

Plan: A detailed proposal for doing or achieving something.

SBI CBO Mock Test - 4 - Question 22

You need to clean your shoes properly.

Detailed Solution for SBI CBO Mock Test - 4 - Question 22

Your shoes need to be cleaned properly.

SBI CBO Mock Test - 4 - Question 23

Directions: In the question given below there are two statements, each statement consists of two blanks. You have to choose the option which provides the correct set of words that fits both the blanks in both the statements appropriately and in the same order making them meaningful and grammatically correct.

I. A Minneapolis City Council committee will vote Tuesday on an ________ that would require companies to obtain a license to ________ the rental electric scooters in the city.

II. The government passed the first reading of an ________ to ________ the machines that will support major aspects of construction for the project.

Detailed Solution for SBI CBO Mock Test - 4 - Question 23

In the first blank, the only options that fit in are options B and D- Order and Ordinance. Pass does not fit in the second blank in either of the sentences. Operate is the perfect fit for the second blank.

Hence, Option D is the answer.

SBI CBO Mock Test - 4 - Question 24

Read the each sentence to find out whether there is any grammatical error in it. The error, if any will be in one part of the sentence. The letter of that part is the answer. If there is no error, the answer is 'D'. (Ignore the errors of punctuation, if any).

Detailed Solution for SBI CBO Mock Test - 4 - Question 24

why does Professor Dhavan

SBI CBO Mock Test - 4 - Question 25

Directions: In the question given below there are two statements, each statement consists of two blanks. You have to choose the option which provides the correct set of words that fits both the blanks in both the statements appropriately and in the same order making them meaningful and grammatically correct.

I. President Trump says he is confident North Korean leader Kim Jong Un would ________ an agreement they reached last month to________ denuclearization.
II. The students held a ceremony in ________ of their new professor who left engineering to ________ teaching.

Detailed Solution for SBI CBO Mock Test - 4 - Question 25

In the second blank, the only options that fit in are options A and B- Follow and Pursue. However, Condemn does not fit in the first blank of the second statement. Honor is the perfect fit for the first blank.

Hence, B is the answer.

SBI CBO Mock Test - 4 - Question 26

Read the each sentence to find out whether there is any grammatical error in it. The error, if any will be in one part of the sentence. The letter of that part is the answer. If there is no error, the answer is 'D'. (Ignore the errors of punctuation, if any).

Detailed Solution for SBI CBO Mock Test - 4 - Question 26

There is no grammatical  error in the sentences .

SBI CBO Mock Test - 4 - Question 27

Directions: In the question given below there are two statements, each statement consists of two blanks. You have to choose the option which provides the correct set of words that fits both the blanks in both the statements appropriately and in the same order making them meaningful and grammatically correct.

I. In the seventies, one school of thought believed that inflation was a ________ of class ________, or at least conflict between different sections of society for a share of the economic pie.
II. Corporations and wealthy individuals have more money to pour into political campaigns and as a ________ they get a better deal, while labor unions have far less because America’s shift from farm to factory was accompanied by decades of bloody labor ________.

Detailed Solution for SBI CBO Mock Test - 4 - Question 27

Option A: skirmish does not fit in contextually in any of the sentences.

Option C: Outcome does not fit contextually in the second statement.

Option D: reaction does not fit in contextually in any of the sentences.

Option B fits perfectly in both the statements.

Hence, option B is the correct answer.

SBI CBO Mock Test - 4 - Question 28

Read the each sentence to find out whether there is any grammatical error in it. The error, if any will be in one part of the sentence. The letter of that part is the answer. If there is no error, the answer is 'D'. (Ignore the errors of punctuation, if any).

Detailed Solution for SBI CBO Mock Test - 4 - Question 28

bigger than any other city

SBI CBO Mock Test - 4 - Question 29

Directions: In the question given below there are two statements, each statement consists of two blanks. You have to choose the option which provides the correct set of words that fits both the blanks in both the statements appropriately and in the same order making them meaningful and grammatically correct.

I. Today there are tens of millions of Indians living in ________ corners of the country who don’t have access to some of the basic ________ city dwellers take for granted.
II. Use of geo-spatial techniques like ________ sensing can be of immense help in identifying villages lacking in basic ________ and ensuring their all round development at micro-level.

Detailed Solution for SBI CBO Mock Test - 4 - Question 29

Option A: Isolated does not fit contextually in the second statement.

Option B: Distant does not fit contextually in the second statement.

Option D: Inaccessible does not fit contextually in the second statement.

Option C fits perfectly in both the statements.

Hence, option C is the correct answer.

SBI CBO Mock Test - 4 - Question 30

Read the each sentence to find out whether there is any grammatical error in it. The error, if any will be in one part of the sentence. The letter of that part is the answer. If there is no error, the answer is 'D'. (Ignore the errors of punctuation, if any).

Detailed Solution for SBI CBO Mock Test - 4 - Question 30

hasn't she

SBI CBO Mock Test - 4 - Question 31

Under which Act is a Land Development Bank registered in our country?

Detailed Solution for SBI CBO Mock Test - 4 - Question 31

Land Development Banks (LDBs) are essentially co-operative institutions. All the LDBs are registered under the Co-operative Societies Act.

SBI CBO Mock Test - 4 - Question 32

RBI's open market operation transactions are carried out with a view to regulate

Detailed Solution for SBI CBO Mock Test - 4 - Question 32

RBI's open market operation transactions are carried out with a view to regulate liquidity in the economy, prices of essential commodities and inflation. Open market operations refer to sale and purchase of securities in the open market.

SBI CBO Mock Test - 4 - Question 33

Which of the following committees is related to Financial Inclusion?

Detailed Solution for SBI CBO Mock Test - 4 - Question 33
  • Government of India had set up a committee in 2006 whose chairman was Dr. C. Rangarajan to study the pattern of exclusion from access to financial services throughout the region, gender, and occupational mechanism and to identify the barriers confronted by vulnerable individuals in accessing credit and financial services and suggest the steps required for financial inclusion. The committee submitted its report in January 2008.
  • According to the committee, Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups like weaker sections and groups with low income at an affordable cost.
SBI CBO Mock Test - 4 - Question 34

Consider the following statements with respect to “Money Market"
(a) Maturity period of Money market instruments ranges from overnight to 364 days.
(b) Money market is a market for short term debts instruments
(c) Cash management bills are also known as Treasury Bills
(d) Money market instruments are issued only by RBI
Which of the above following statements are true?

Detailed Solution for SBI CBO Mock Test - 4 - Question 34
  • 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
SBI CBO Mock Test - 4 - Question 35

A cash credit account will become NPA if it ________

Detailed Solution for SBI CBO Mock Test - 4 - Question 35
  • NPA stands for Non-Performing Asset.
  • It is an asset when it ceases to generate income for the bank and becomes overdue for more than 90 days.
  • It places a financial burden on the lender.
  • NPA is categorized into 3 categories:
    • Sub-standard assets: For less than 12 months.
    • Doubtful assets: For more than 12 months.
    • Loss assets: The one that needs to be fully written off. 
  • 'Project Sashakt India AMC' has been implemented by the government to tackle the problem of NPAs.
  • The project is recommended by Sunil Mehta Committee.
  • SBI has the highest NPA in India with over Rs. 1.86 lakh crore followed by Punjab National Bank and Bank of India.
SBI CBO Mock Test - 4 - Question 36

Under whose recommendation was Imperial bank of India nationalized and renamed as State Bank of India on July 1, 1955?

Detailed Solution for SBI CBO Mock Test - 4 - Question 36

On the Gorewala Committee's recommendation, the Imperial Bank was nationalized in 1955 and renamed the State Bank of India.

SBI CBO Mock Test - 4 - Question 37

What was the authorized capital of the Reserve Bank of India at the time of establishment?

Detailed Solution for SBI CBO Mock Test - 4 - Question 37

At the time of establishment, the authorized capital of the Reserve Bank of India was Rs. 5 crores.

SBI CBO Mock Test - 4 - Question 38

Financial inclusion attempts to provide digital financial solutions to the country's economically disadvantaged citizens. Which of the following is one among the schemes introduced to promote Financial Inclusion?

Detailed Solution for SBI CBO Mock Test - 4 - Question 38

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

SBI CBO Mock Test - 4 - Question 39

What are the types of Financial Market?

Detailed Solution for SBI CBO Mock Test - 4 - Question 39

Financial markets are classified as:

  1. Money market
  2. Capital market
SBI CBO Mock Test - 4 - Question 40

What are the causes of Non- Performing Assets (NPAs)?

Detailed Solution for SBI CBO Mock Test - 4 - Question 40

Causes of NPA:

  1. Business Management problems
  2. Internal bank Management
  3. Credit Policy
  4. Lack of adequate resources
SBI CBO Mock Test - 4 - Question 41

Which of the following statements is/are correct regarding Exim Bank?

  1. It provides financial advice and counseling services for internationalisation of business of Indian companies which are foreign oriented.
  2. It provides working capital term loan to export-oriented units.
  3. It extends buyers' credit and lines of credit
Detailed Solution for SBI CBO Mock Test - 4 - Question 41

Export-Import Bank of India is a finance institution in India, established in 1982 under Export-Import Bank of India Act 1981. Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. The main functions of EXIM are:

  1. To ensure and integrated and co-ordinated approach in solving the allied problems encountered by exporters in India.
  2. To pay specific attention to the exports of capital goods;
  3. Export projection;
  4. To facilitate and encourage joint ventures and export of technical services and international and merchant banking;
  5. To extend buyers' credit and lines of credit;
  6. To tap domestic and foreign markets for resources for undertaking development and financial activities in the export sector.
  7. To provide term loans/deferred payment guarantees to 100% export‑oriented units, units in trade zones and computer software exporters.
  8. To provide financial advice and counseling services for internationalisation of business of Indian companies which are foreign oriented.
SBI CBO Mock Test - 4 - Question 42

The Reserve Bank of India has decided to help banks as a temporary measure, by providing additional liquidity support under LAF. What does LAF stand for?

Detailed Solution for SBI CBO Mock Test - 4 - Question 42

A liquidity adjustment facility (LAF) is a tool used in monetary policy, primarily by the Reserve Bank of India (RBI), that allows banks to borrow money through repurchase agreements (repos) or for banks to make loans to the RBI through reverse repo agreements. This arrangement manages liquidity pressures and assures basic stability in the financial markets. In the United States, the Federal Reserve transacts repos and reverse repos under its open market operations.

SBI CBO Mock Test - 4 - Question 43

Which of the following Organization introduced the concept of Financial Inclusion in India ?

Detailed Solution for SBI CBO Mock Test - 4 - Question 43
  • The concept of financial inclusion was first introduced in India in 2005 by the Reserve Bank of India.​ 
  • Reserve Bank of India (RBI):-
    • The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act 1934
    • since Nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
  • AIM:
    • ​To regulate the issue of Banknotes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.
    • It is known as Banker's Bank.
    • It has the power to provide and cancel the license to other commercials, scheduled banks.
    • Headquarters: Mumbai.
    • Governor: Shakthikantha Das.
SBI CBO Mock Test - 4 - Question 44

Consider the following statements regarding the Money and Capital market in India:

  1. Money markets are generally much safer than capital markets.
  2. Investment in the capital market requires a huge financial outlay to invest compared to the money market.
  3. Capital market generally yields a higher return for investors than the money markets. 

Which of the statements given above is/are correct?

Detailed Solution for SBI CBO Mock Test - 4 - Question 44

Money and Capital market in India

  • Capital market instruments are riskier both concerning returns and principal repayment.
  • Issuing companies may fail to perform as per projections and promoters may defraud investors.
  • On the other hand, the money market is generally much safer with a minimum risk of default. Hence, Statement 1 is correct.
  • This is due to the shorter duration of investing and also to the financial soundness of the issuers, which primarily are the government, banks, and highly rated companies.
  • Investment in the capital market i.e., securities do not necessarily require a huge financial outlay. Hence, Statement 2 is incorrect.
  • The value of units of securities is generally low i.e., Rs 10, Rs 100. In the money market, transactions entail huge sums of money as the instruments are quite expensive. 
  • Investment in capital markets generally yields a higher return for investors than the money markets. Hence, Statement 3 is correct.
  • The possibility of earnings is higher if the securities are held for a longer duration.
  • First, there is the scope of earning capital gains in equity shares.
  • Second, in the long run, the prosperity of a company is shared by shareholders by way of high dividends and bonus issues. 
SBI CBO Mock Test - 4 - Question 45

What is meant “By Technical NPA”?

Detailed Solution for SBI CBO Mock Test - 4 - Question 45

NPA is a loan account becoming NPA for non – renewal, for not obtaining stock statements and non- recording the due date after re-phasing / restructuring of a loan account.

SBI CBO Mock Test - 4 - Question 46

Which of the following is the First Indian Commercial bank wholly owned and managed by Indians?

Detailed Solution for SBI CBO Mock Test - 4 - Question 46

The Central Bank of India, founded in 1911, was the first Indian commercial bank to be entirely owned and operated by Indians.

SBI CBO Mock Test - 4 - Question 47

Who served as the first Governor of the Reserve Bank of India (RBI)?

Detailed Solution for SBI CBO Mock Test - 4 - Question 47

Sir Osborne Smith was the first Governor of the Reserve Bank.

SBI CBO Mock Test - 4 - Question 48

When was the Basic Savings Bank Deposit Account (BSBDA) introduced in India replacing No-Frill Accounts?

Detailed Solution for SBI CBO Mock Test - 4 - Question 48

To provide widespread access to banking services, no-frills bank accounts demand a zero or very low minimum balance, as well as additional financial services such as withdrawals, ATM, and Debit card services at no cost. In the year 2012, no-frills bank accounts were called Basic Saving Bank Deposit Accounts.

SBI CBO Mock Test - 4 - Question 49

What are the functions of the Capital Market?

Detailed Solution for SBI CBO Mock Test - 4 - Question 49

Functions of Capital Market:

  1. The Capital Markets help to accelerate the process of economic growth
  2. Facilitates the movement of capital to be used more profitability and productively to boost the national income
  3. Minimization of transaction and information cost
  4. Quick valuations of financial instruments
  5. Encourages a massive range of ownership of productive assets
SBI CBO Mock Test - 4 - Question 50

If an NPA remains for a period less than or equal to 12 months, then it is considered to be ___________.

Detailed Solution for SBI CBO Mock Test - 4 - Question 50

If an NPA remains for a period less than or equal to 12 months is considered to be Sub- Standard Assets.

SBI CBO Mock Test - 4 - Question 51

Which of the following statements is/are correct regarding National Housing Bank?

  1. It provides refinance to scheduled commercial banks.
  2. It provides Guarantee and Under-writing services to Housing Finance institutions.
  3. It is not authorised to audit account books of Housing Finance institutions and scheduled commercial banks.
Detailed Solution for SBI CBO Mock Test - 4 - Question 51

Only the first and the second statements are correct. If the National Housing Bank is of the opinion that it is necessary to do it in the public interest or in the interest of the housing finance institution or in the interest of the depositors of such institution, it may at any time by order, direct that a special audit of the accounts of the housing finance institution in relation to any such transaction or class of transactions or for such period or periods, as may be specified in the order, shall be conducted and the National Housing Bank may appoint an auditor or auditors to conduct such special audit and direct the auditor or the auditors to submit the report to it.

SBI CBO Mock Test - 4 - Question 52

Under the provisions of which of the following acts does the Reserve Bank of India have the power to regulate, supervise and control the banking sector?

Detailed Solution for SBI CBO Mock Test - 4 - Question 52

Banking Regulation Act gives the Reserve Bank of India (RBI) the power to license banks, have regulation over shareholding and voting rights of shareholders, supervise the appointment of the boards and management, regulate the operations of banks, lay down instructions for audits, control moratorium, mergers and liquidation, issue directives in the interests of public good and on banking policy, and impose penalties.

SBI CBO Mock Test - 4 - Question 53

Financial inclusion is needed because of the following?

  1. Growth
  2. Development
  3. Service delivery
Detailed Solution for SBI CBO Mock Test - 4 - Question 53

The need for financial inclusion can be observed in:

  • Development – Greater access to financial services = Increase in savings + Decrease in income inequality & poverty + Increase in employment levels
  •  Growth – It encourages the habit to save, thus enhancing capital formation in the country and giving it an economic boost. Also, the availability of sufficient and transparent credit from formal banking institutions will promote the entrepreneurial spirit among the people = increase in productivity and prosperity in rural areas.
  • Service delivery – Direct cash transfers to beneficiary bank accounts rather than physical cash payments against the subsidy.
SBI CBO Mock Test - 4 - Question 54

Money Market is divided into how many types?

Detailed Solution for SBI CBO Mock Test - 4 - Question 54

Money Market is divided into three types-Call Money, Term Money and Notice Money. 

SBI CBO Mock Test - 4 - Question 55

Which of the following statement is correct with respect to Doubtful Assets?

Detailed Solution for SBI CBO Mock Test - 4 - Question 55

The asset which remains substandard for a period of 12 months are doubtful assets.

SBI CBO Mock Test - 4 - Question 56

Which bank is the first bank to introduce a savings account in India?

Detailed Solution for SBI CBO Mock Test - 4 - Question 56

Presidency Bank was the first bank in India to establish a savings account system in 1833.

SBI CBO Mock Test - 4 - Question 57

Who was the first Indian Governor of the Reserve Bank of India?

Detailed Solution for SBI CBO Mock Test - 4 - Question 57

The first Indian Governor of the Bank was Chintaman Dwarkanath Deshmukh, a member of the Indian Civil Service. When he was appointed Government liaison officer in 1939, he began his affiliation with the Bank. He went on to become Secretary of the Bank and then Deputy Governor in 1941.

SBI CBO Mock Test - 4 - Question 58

What are all the conditions of holding a Basic Savings Bank Deposit Account?

Detailed Solution for SBI CBO Mock Test - 4 - Question 58

Conditions of BSBD Account:

  1. Maximum balance in the account should not exceed Rs. 50000 rupees at any time
  2. Total credit in the BSBD account should not exceed Rs.1 lakh in a year.
  3. Total cash withdrawals and transfers shall not exceed Rs.10,000 in a month.
  4. Small accounts are valid for 12 months initially which may be extended by another 12 months if the person provides proof of OVDs
  5. Remittances from abroad cannot be credited to small accounts without completing KYC formalities.
SBI CBO Mock Test - 4 - Question 59

What are the types of Capital Market?

Detailed Solution for SBI CBO Mock Test - 4 - Question 59

The capital market consists of two types i.e. Primary and Secondary.

SBI CBO Mock Test - 4 - Question 60

__________ are the borrowers who are unwilling to repay their debt obligations, despite having the capacity to pay.

Detailed Solution for SBI CBO Mock Test - 4 - Question 60

In any of the four situations listed below, a person or company is considered a "wilful defaulter": When a borrower (person or business) fails to meet their payment obligations, although having the financial means to do so. There is a planned plan to default on the debt.

SBI CBO Mock Test - 4 - Question 61

The amount of deposits placed by a non-scheduled Urban Cooperative Bank with any scheduled Urban Cooperative Bank should not exceed _____ of the depositing bank's total deposit liabilities.

Detailed Solution for SBI CBO Mock Test - 4 - Question 61

The amount of deposits placed by a non-scheduled UCB with any scheduled UCB should not exceed 5% of the depositing bank's total deposit liabilities as on March 31 of the previous financial year. The total inter-UCB deposits accepted by a scheduled UCB should not exceed 10% of its total deposit liabilities as on 31st March of the previous financial year.

SBI CBO Mock Test - 4 - Question 62

Who has the sole right to issue paper currency in India, except rupee note?

Detailed Solution for SBI CBO Mock Test - 4 - Question 62

Under Section 22 of the Reserve Bank of India Act, RBI has the sole right to issue currency notes of various denominations, except one rupee notes. The one rupee note is issued by the Ministry of Finance and bears the signature of the Finance Secretary, while other notes bear the signature of the RBI Governor.

SBI CBO Mock Test - 4 - Question 63

Which of the following is introduced by banks to increase financial inclusion?

Detailed Solution for SBI CBO Mock Test - 4 - Question 63

A business correspondent is a bank-in-person, who is authorised to collect small ticket deposits and extend small credit on behalf of the banks. Business correspondents are an important medium of promoting financial inclusion in rural and backward regions, with limited availability of bank branches.

SBI CBO Mock Test - 4 - Question 64

Which of the following organizations is a Capital market regulator?

Detailed Solution for SBI CBO Mock Test - 4 - Question 64

Securities & Exchange Board of India (SEBI)

  • It is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India.
  • SEBI’s primary functions include protecting