SEBI Grade A (General Stream) Mock Test - 4 - Bank Exams MCQ

The correct answer is Vijaya Bharathi Sayani

In News

• Vijaya Bharathi Sayani, a member of the NHRC, was appointed to act as the Chairperson.

Key Points

• Notification of Appointment: The Ministry of Home Affairs issued a notification regarding the appointment of an acting chairperson for the NHRC.
• Appointee: Vijaya Bharathi Sayani, a member of the NHRC, was appointed to act as the Chairperson.
• Effective Date: The appointment is effective from June 2, 2024.
• Legal Basis: The appointment was made under Section 7(1) of the Protection of Human Rights Act, 1993.
• Tenure Details: Sayani will serve as acting Chairperson until a new Chairperson is appointed to fill the vacancy.
• Previous Position: Sayani joined as a member of the NHRC on December 28 of the previous year.
• Predecessor: Former Supreme Court Judge Justice Arun Kumar Mishra, who served as NHRC Chairperson since June 2, 2021, retired on June 1, 2024

• Russian cosmonaut Oleg Kononenko became 1st person to spend 1,000 cumulative days in space.

• This record was announced by Russia's space agency, Roscosmos, and marks a historic moment in human spaceflight.
• Kononenko's journey to this record began with his first mission, Expedition 17 to the International Space Station (ISS), which launched in April 2008.
• Over the years, Kononenko has participated in five separate missions to the ISS, accumulating days that contributed to this record.
• His current mission began on September 15, 2023, and is planned to end on September 23, 2024, which will bring his total number of days in space to 1,110.
• This record surpasses the previous record of 878 days set by his colleague, Gennady Padalka.

Additional Information

• Kononenko's commitment to space exploration is driven by his passion for the field, as he mentioned that his motivation to fly into space is not for setting records but for the love of the profession.
• His achievement not only showcases his dedication but also highlights the extensive preparation and endurance required for long-duration space missions.
• Therefore, the correct answer is Oleg Kononenko, whose extraordinary space career has now included spending a cumulative total of 1,000 days aboard the ISS.

The correct answer is OTTplay

In News

• OTTplay, backed by HT Labs, achieved significant success at the INMA Global Media Awards 2024, reinforcing its position in the digital media landscape.

Key Points

• The platform secured Gold in the Best Product Iteration category and Silver in the Best Use of an Event to Build a News Brand category.
• OTTplay's transformation from a recommendation platform to an OTT aggregator addressing the challenge of managing multiple subscriptions while offering a unified content discovery and consumption experience was acknowledged as innovative and groundbreaking.
• The platform's unique initiative, OTTplay Awards, which celebrates the best movies, shows, actors, and makers across India, contributed to winning Silver in the Best Use of an Event to Build a News Brand category.
• This initiative promotes language-agnostic content and provides a platform for content from all Indian regional languages to compete on an equal footing.
• Avinash Mudaliar, CEO and Co-founder of OTTplay, expressed gratitude for the recognition, highlighting the dedication and innovative spirit of the team.
• OTTplay is India's leading OTT aggregator utilizing AI-based recommendations to transform content discovery and consumption.
• The platform's recent introduction of OTTplay Premium offers curated content from 37 premier OTT platforms personalized to each user's preferences.

The correct answer is Option 2.

Key Points

• Alice Munro expressed that her familial roles greatly influenced her writing, finding them integral to her process. Thus, statement A is correct.
• The Vancouver Sun's headline on Munro actually emphasized her domestic roles over her literary accomplishments, reading: “Housewife finds time to write short stories.” This makes statement B incorrect because it claims the headline focused on her success as a writer without mentioning her domestic responsibilities, which is the opposite of what was reported.
• Munro was indeed recognized for her mastery over the short story genre when she was awarded the Man Booker International Prize in 2009, making statement C correct.
• Hence, we can infer that only the statement B is incorrect.

Therefore, the correct answer is 'Only B'.

The correct answer is 'Option 3'.

Key Points

• The error in part (C) is the use of the word "precise".
• The word "precise" should be replaced with "precision".
• "Accuracy" and "precision" are both nouns, and they should be used parallelly.
• The correct phrase should be "with great accuracy and precision in planning".

Hence, the correct answer is option 3.

Correct sentence: It was an unprecedented situation and they worked with great accuracy and precision in planning every move against the enemy.

• Option 1 (A): "It was an unprecedented" is grammatically correct and does not contain any error.
• Option 2 (B): "situation and they worked" is also correct. There is no grammatical mistake here.
• Option 4 (D): "every move against the enemy" is grammatically correct and does not contain any error.
• Option 5 (E): "No error" is incorrect because there is an error in part (C).

The correct answer is BCEAD

Key Points

• To find the correct order of the given words, we first need to understand their meaning as well as their grammatical application, the following table does the same:

• As the table above clarifies the meanings of the given words we can infer the following points:
  • 'Customer' is a noun that refers to someone who purchases the goods from some organization, in this case, it seems to be a restaurant (the mention of a 'waiter' later on reveals this). The 'customer' is also mentioned again later. Thus, B is apt for the first sentence.
  • 'Despicably' is an adverb that refers to the quality of something, in this case, 'treatment'. None of the other options are adverbs and thus C is apt for the second sentence.
  • 'Arrogant' is an adjective used to describe and person, and is usually found in someone who sees themselves as superior in a situation. In a restaurant, in a waiter-customer relationship, it would make sense that the customer feels this way. Thus, E is apt for the third sentence.
  • 'Indignant' is what a person can be described as when they are angry about unfair treatment. The passage mentions that a customer had thrown a glass of water in the face of Mark, this would make him angry. Thus, A is apt for the fourth sentence.
  • 'Confronted' is a verb (an action) used to refer to talking to someone with an intention to accuse them or to argue with them. It is an action that can happen between 2 people, in this case, Mark and his boss. Thus, D is apt for the fifth sentence.
• From the above inferences, we can conclude that the correct rearrangement of the words is as follows - BCEAD

Correct Passage

Mark was treated really badly by the B. customer. He had been a waiter for over 5 years, but no one had treated him so C. despicably. The customer was E. arrogant and he threw a glass of water in Mark’s face. Mark was A. indignant, but he kept his cool and handed over the table of the customer to another waiter. He then D. confronted his boss about allowing customers to behave in this way with the staff.

Calculation:

I. 3X² – 42X + 135 = 0

⇒ X² – 14X + 45 = 0 ----(∵ divide by 3 )

⇒ X² – 9X – 5X + 45 = 0

⇒ X(X – 9) – 5(X – 9) = 0

⇒ (X – 5) (X – 9) = 0

∴ The value of X is 5, 9.

II. 2Y² – 42y + 220 = 0

⇒ Y² – 11Y – 10Y + 110 = 0 ----(∵ taking 2 as common)

⇒ Y(Y – 11) – 10Y(Y – 11) = 0

⇒ (Y – 10) (Y – 11) = 0

∴ The value of Y is 10, 11.

∴ X < Y

10.8 seconds

Given:

The speed of the train = 50 km/h

The total length of the train = 100 m

The total length of the platform = 500 m.

Formula Used:

;

where t = time taken by the train to cross the platform,

= length of the platform,

= length of the train,

= velocity of the train.

Conversion of speed from km/h to m/s = velocity in km/h × (5/18)

Calculation:

(2/5)th the length of the platform = (2/5) × 500 = 200 m

Double the initial speed of the train = 2 × 50 km/h = 100 km/h

This speed in m/s = 100 × (5/18) = (250/9) m/s

So the total time to cover the required distance at the new speed = seconds

∴ The time taken by the train to cover (2/5)th the length of the platform at double its initial speed = 10.8 seconds

Solution:

Number of books sold in 2020 = (2020 - 1000) = 1020

Number of poetry books sold in 2020 = (750 - 500) = 250

Number of fiction books sold in 2020 = (1020 - 250) = 770

Similarly, we can calculate the number of books sold in different years.

Number of fiction books sold in 2021 = 230

Number of poetry books sold in 2021 = 1250

Total revenue in 2021 = (230 x 350) + (1250 x 250) = Rs. 393000

Hence, the correct answer is option 3.

People : Rita, Sarita, Shyam, Raj, Raman and Rahul.

Product : Car, Wardrobe, Washing machine, Sofa set, Curtain and Air purifier

Month : January to June (but not necessarily in the same order).

1) Raj will buy Curtain but not in February.

2) Sarita will neither buy Wardrobe nor Car.

3) One of the people will buy Washing machine in March.

4) Sarita will buy product just immediate after Raj.

5) Rahul will buy product immediate before Raj.

6) Rahul will neither buy Washing machine nor Car.

(So, Rahul will buy Product in April month)

7) Shyam will not buy Washing machine but will buy product immediate after Raman.

(So, Raman will buy Product in January and Shyam will buy Product in February.)

8) Raman will neither buy Car nor Sofa set.

(Hence, Shyam will buy Car.)

9) Rahul will not buy Wardrobe Product. Sofa set was purchased before Air purifier.

All except Shyam - Rahul brought in consecutive month.

Two persons have more credit scores than Lata.

Kashvi has a higher credit score than Lata. Pooja has a higher credit score than Kashvi.

Ayush has a higher credit score than Shriyansh and Mayank. Mayank's score is not the least.

Ayush credit score is 650 and Pooja's credit score is 700.

Hence, Pooja has the maximum credit score.

Two persons have more credit scores than Lata.

Kashvi has a higher credit score than Lata. Pooja has a higher credit score than Kashvi.

Ayush has a higher credit score than Shriyansh and Mayank. Mayank's score is not the least.

Ayush credit score is 650 and Pooja's credit score is 700.

Lata will have score in between 650 - 700 so from the given option 680 is the score.

Hence, the possible credit score of Lata is 680.

The correct answer is Chapter XXVII.

Key Points

• Chapter XXVII provides frameworks for the restructuring and rehabilitation of financially distressed companies, aiming to facilitate their recovery through organized and strategic measures.
• Chapter II deals with the incorporation of the company & matters incidental thereto.
• Chapter XIII deals with the appointment and remuneration of the Managerial Personnel.
• Chapter IX deals with the accounts of the companies.
• Chapter III deals with the prospectus & allotment of securities.

The correct answer is When payment is received in advance of services rendered.

Key Points

• Deferred revenue, a liability, occurs when a company receives payment for goods or services yet to be delivered or performed.
• When services are rendered in advance of payment: This would result in an accounts receivable.
• When expenses are prepaid: This results in a prepaid expense asset.
• When debts are forgiven: This may affect both revenue recognition and bad debts.
• When assets are depreciated: Relates to the reduction of the carrying amount of fixed assets.

The correct answer is Pareto Efficiency

Key Points

• Pareto Efficiency, a concept from welfare economics, describes a state where it is impossible to make one individual better off without making another individual worse off.
• This principle is used as a benchmark to evaluate the efficiency of economic systems and resource allocations.
• It is often used to assess the effectiveness of public policies in terms of their ability to improve societal welfare without detriment to any community.

Additional Information

• Keynesian Equilibrium
  • Describes a state in an economy where demand equals supply (aggregate demand equals aggregate supply).
• Nash Equilibrium
  • A concept of game theory where each player's strategy is optimal when considering the choices of other players.
• Rational Expectations
  • Assumes that individuals form forecasts about the future based on all available information in an unbiased and consistent manner.
• Invisible Hand
  • Adam Smith's famous concept that individuals' self-interested actions can lead to positive social outcomes as if guided by an invisible hand.

To control central bank credit and investment, the following should be done by selling securities in the open market and increasing the cash fund ratio.

• Open Market Operation refers to the purchase and sale of government securities in the money market
• It is exercised by the central bank through the direct purchase or sale of government bonds to regulate liquidity and credit conditions through the monetary policy committee.
• If the central bank seeks money supply growth then it buys government bonds thereby channeling money into the market.
• If the central bank seeks to restrict money supply it sells the government securities and borrows money from commercial banks
• Cash Reserve Ratio is a minimum amount of the total deposit of customers that is required by the commercial bank as a reserve either in cash or as deposits with RBI.
• At the time of high inflation, the central bank needs to ensure that excess money is not available in the economy.
• The central bank increases the cash reserve ratio and the amount of money that is available with the banks reduces. This restricts the excess flow of money in the economy

The correct answer is Process Costing.

Key Points

• Process costing is used in industries like chemicals, oil refining, and flour milling, where products are indistinguishable from each other and it is not feasible to assign specific costs to individual units.
• Job Costing: Used where production is not continuous and costs are assigned to specific jobs or batches.
• Batch Costing: Similar to job costing but costs are compiled for batches rather than individual units.
• Contract Costing: Costs are assigned to specific contracts, typically in construction.
• Activity-Based Costing: Costs are assigned based on activities that drive costs, not specific to continuous production processes.

The correct answer is ​The weighted average time until all cash flows are received.

Key Points

• Duration is a financial metric that measures the weighted average time it takes to receive all cash flows from a bond, commonly used to assess a bond's sensitivity to changes in interest rates.

Additional Information

• Total time until maturity: While related to duration, this does not account for the time value of money.
• Interest rate: Refers to the coupon rate, which is distinct from duration.
• Credit risk: Involves the likelihood of default, which is not measured by duration.
• Coupon frequency: Affects the calculation of duration but does not define it.

The correct answer is Transformational Leadership

Key Points

• Transformational leaders work by motivating employees to exceed their initial expectations and encouraging innovation and creativity.

Additional Information

• Transactional Leadership
  • Focuses on routines and roles.
  • Highly structured and very rigid in operational execution.
• Autocratic Leadership
  • Leaders make decisions unilaterally.
  • Little to no input from group members.
• Bureaucratic Leadership
  • Leaders follow strict rules and procedures.
  • Best suited where strict safety rules and quality standards are needed.
• Laissez-faire Leadership
  • Minimal to no guidance from leaders.
  • Relies on the self-motivation of employees.

The correct answer is A NBFC can extend loans and advances

• NBFC’s lend and make investments and hence their activities are similar to that of banks; however there are a few differences as given below:

1. NBFC cannot accept demand deposits;
2. NBFCs do not form part of the payment and settlement system and hence cannot issue cheques
3. Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

The correct answer is Divisional Structure

Key Points

• Divisional structures organize a business according to geographical area, product/service line, or market.
  • Each division operates almost like its own company, containing all the necessary functions within it.
  • This structure allows for flexibility and rapid response to changes in external market conditions because each division focuses closely on its specific operational area.
  • It can lead to efficiencies in operations where different products or services require distinctly different marketing strategies, production tasks, and talent management.

The correct answer is Accounts Receivable.

Key Points

• Accumulated depreciation is a contra-asset account used to record depreciation expenses, reducing the total value of the asset affected.
• Accounts Receivable: An asset account representing money owed by customers.
• Prepaid Insurance: An asset account representing insurance payments made in advance.
• Goodwill: An intangible asset that represents non-physical assets like reputation.
• Inventory: An asset account holding the value of goods available for sale.

The correct answer is It can cause the model to be unstable and difficult to audit.

Key Points

• Circularity in financial models, especially those involving project finance where interest expense might depend on the amount of debt, which in turn depends on cash flows influenced by interest expenses, can create instability and make the model complex and harder to audit.
• Model Stability: Circular references can lead to errors or require iterative calculations, complicating the model.
• GAAP Requirement: Generally Accepted Accounting Principles do not require circularity; they aim to prevent it in financial reporting.
• Model Simplification: Circularity typically complicates rather than simplifies financial models

The correct answer is Depreciation.

Key Points

• Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value over time.
• Amortization: The process of spreading the cost of an intangible asset over its useful life.
• Depletion: A similar concept to depreciation, applied to natural resources.
• Liquidation: Refers to the process of closing a business and distributing its assets to claimants.
• Dilution: This occurs when a company issues additional shares that reduce an existing shareholder's proportionate ownership.

The correct answer is The relationship between government revenue raised by taxation and the rate of taxation.

Key Points

• The Laffer Curve is a theoretical representation suggesting that there is an optimal tax rate which maximizes total revenue.
  • It proposes that at a certain point, increases in tax rates will cause a decrease in overall revenue.
  • This concept is used to illustrate the trade-off between tax rates and taxable income, indicating that higher taxes might deter economic activity and reduce tax revenue.
  • It is often used as an argument against excessive taxation, suggesting that lower tax rates could encourage more business activity and thus increase tax revenue.

The correct answer is Economies of scale

Key Points

• Economies of scale occur when a company's production increases, leading to a decrease in the average cost per unit through more efficient use of production resources, particularly fixed costs.
• This phenomenon helps firms become more profitable as they grow, assuming that the cost of inputs does not rise disproportionately.
• It is particularly significant in industries requiring heavy capital investment, such as manufacturing and transportation.

Additional Information

• Marginal utility
  • Describes the benefit or satisfaction a consumer gains from consuming one more unit of a good or service.
• Price elasticity
  • Refers to how the quantity demanded of a good responds to a change in the price of that good, epitomizing the economic concept of elastic and inelastic goods.
• Law of diminishing returns
  • States that in productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower incremental per-unit returns.
• Break-even point
  • The production level at which total revenues for a product equal total incurred costs, thus assessing the feasibility and profitability of producing an item.

The correct answer is Arbitrage opportunities and rapid execution.

Key Points

• Long-term investment strategies: HFT focuses on short-term market movements rather than long-term holdings.
• Manual trading techniques: HFT utilizes advanced algorithms and high-speed data networks, opposing manual methods.
• Arbitrage opportunities and rapid execution: HFT strategies involve identifying price discrepancies across markets or securities and executing trades quickly to profit from them.
• Insider information: Utilization of insider information is illegal and not a legitimate part of HFT.
• Public equity offerings: HFT deals with existing securities in the market rather than new issues.

The correct answer is A prospectus is not required for private placements of securities.

Key Points

• Private placements of securities, as per Chapter III, do not require a prospectus to be issued.
• This provision allows companies to raise funds from a select group of investors without the extensive disclosures typically required for public offerings.

Additional Information

• Listing on stock exchanges: Not a requirement under this chapter; companies can choose where to list their securities.
• Issue a prospectus for each security: The requirement for a prospectus depends on the type of offering and exemptions applicable.
• Include financial projections: Not mandatory; prospectuses need to include prescribed information primarily about the issuer's financial condition and business prospects.
• Filing with SEBI: While filings are necessary, the specifics depend on whether the issuance is public or private and the type of securities offered.

The correct answer is Job Costing.

Key Points

• Job Costing is ideal for businesses that produce custom products or services as it allows for detailed tracking of costs for individual jobs based on specific customer orders.
• Process Costing: Used for standardized production processes.
• Batch Costing: Suitable for groups of similar items that are produced together.
• Contract Costing: Typically used for long-term projects such as construction.
• Service Sector Costing: Used for businesses that provide services rather than tangible goods.

The correct answer is it is invisible and intangible

Key Points

• Company: A Company is an invisible, artificial, legal entity formed by a group of persons who have come together to engage into some business activity.

Important Points

• A company is called an artificial person because it is a legal entity that is created by law.
• A company does not have a physical existence. It exists artificially in the contemplation of law. It has no physical body of a human being.