General Awareness Paper 7

General Awareness Paper 7


1. As we all know Securities and Exchange Board of India (SEBI) has taken some corrective steps to restrict functioning of Partici-patory Notes (P-Notes) in Indian Stock Markets. Why are P-Notes considered dangerous for the financial markets of a country ?
1. This allows a foreign inves-tor to invest funds without knowing the history/finan-cial health of a company. If Company fails foreign investors lose their money. Govt. of India does not want this as this will bring a bad name to the country.
2. P-Notes allow foreign inves-tors to buy shares of blue chip companies without following know Your Customer (KYC) norms. Hence money invested here may not be from a valid and legal source.
3. P-Notes are launched to arrange funds only for social schemes. Due to huge funds available with NRI for investment they are sending it in bulk. Hence cost of such investments is very high and it is not commercially viable for banks to accept such investments.
(A) Only (1) is correct
(B) Only (2) is correct
(C) Only (3) is correct
(D) Both (1) and (2) are correct
(E) None of these

2. The Banking Industry a few years back was badly in the grip of Non Performing Assets (Bad loans) for which the RBI and banks took special measures. As per the latest financial reports of the industry, what is the status of NPAs at present ?
1. There are no NPAs now as not a single loan of Rs. 5 lakhs and above is given by the bank without proper paperwork.
2. As reported of 2006-07 the NPAs have declined.
3. As the interest rates are very high banks are not providing loans to middle class and poor general borrows. Hence NPAs in private and personal bank-ing area are ‘zero’ where as in industrial credit sector NPAs are still at the level of 22 per cent.
(A) Only (1) is correct
(B) Only (2) is correct
(C) Both (1) and (2) are correct
(D) Only (3) is correct
(E) None of these


3. Which of the following car com-panies has launched a small cheaper car Nano?
(A) Maruti Suzuki Udhyog Ltd.
(B) Hyundai Motor India Ltd.
(C) Tata Motors Ltd.
(D) Hindustan Motors Ltd.
(E) None of these

4. The Govt. of India in general and the Banks in particular are very much after the Financial Inclusion goal which both of them wish to achieve as early as pos-sible. What is the actual meaning of ˜Financial Inclusion” ?
1. Each and every individual above the age of 21 years should have an employ-ment and/or independent source of income enough for him/her to sustain.
2. It is a concept which envi-sages that maximum people in India should have access to banking services.
3. Banking services should be provided only to those who have a valid and legal source of income as Govt. of India wants each and every per-son in the income tax net irrespective of the level of their income.
(A) Only (1) is true
(B) Only (2) is true
(C) Only (3) is true
(D) Both (1), (2), (3) are true
(E) None of these

5. As per the reports in the major financial newspapers India has urged China to redress imbalance in trade. What does it really mean ?
(A) India exports more items to China whereas China does not export much to India
(B) India is not able to export much to China whereas its import from China is of higher value
(C) China and India are not at all trade partners. Hence there is no transaction between the two countries
(D) As per WTO laws India is supposed to export food grains to China. But China has not placed any order for the same in 2006-07. It has also refused to accept 200 lakh tonnes of wheat exported to it by India.
(E) None of these

6. As reported in the newspapers the collection of Direct Taxes which includes IT, FBT, STT and BCTT grew by about 50% during the current fiscal year. Which of the following is the name of the tax levied on a cash withdrawal or deposit from/to a bank ?
(A) IT                         (B) FBT
(C) STT                      (D) BCTT
(E) None of these

7. As reported in some financial newspapers some banks in India (including major banks) these days are not accepting US dollar transactions from Iranian buyers. Which of the following is the major reason of banks not accep-ting such transactions from Iran ?
1. USA has put a ban on major iranian Banks hence Indian banks are also not accepting transaction from Iran as they do not get return of the same from it.
2. Iran is facing a major Reces-sion hence all Banks have stopped major transactions with Iranian banks.
3. Iran has declared itself as an Islamic country and hence its banking is also Islamic Banking. This is the reason owing to which most of the countries are not able to develop financial ties with it.
(A) Only (1)
(B) Only (2)
(C) Only (3)
(D) Both (1) and (2)
(E) All (1), (2) and (3)

8. As reported in some major financial news papers many times it is said that ˜Other Income” boosts the profit of a bank to a substantial level. What is this other income for a bank ? (Pick up the option (s) which are the part (s) of this other income)
1. Commission for selling insurance policies.
2. Fee for providing various services (like ATM/Extra cheque etc.)
3. Interest on advances and loans.
(A) Only (1)
(B) Only (2)
(C) Both (1) and (2)
(D) Only (3)
(E) All (1), (2) and (3)

9. Amongst the BRIC nations the GDP of which of the following took a fast growth of 11•5% in recent past ?
(A) None             (B) Brazil
(C) Russia             (D) India
(E) China

10. Which of the following is the achievement/outcome of Mrs. Sonia Gandhi’s visit to China in October 2007 ?
1. A working group is established to prepare a frame-work for the settlement of boundary issue.
2. China has agreed to support India’s claim to have a permanent seat in UN Security Council.
3. China agreed to stop all exports to Pakistan till it switches over to a democratically elected government.
(A) Only (1)
(B) Only (2)
(C) Only (3)
(D) Both (1), (2) and (3)
(E) None of these

11. As reported time and again and in the media most of the Indian Industrialists are against a regional trade pact with China. Why China is not a preferred partner in trade and business activities in India ?
1. India has already instigated maximum number of cases against China under anti dumping laws.
2. China is not a quality cons-cious country. Hence the products are not of good market value.
3. China has maximum trade agreements with those countries whose activities are not liked by India and some major countries of E.U. China is importing goods from them and redirecting it to India.
(A) Only (1)
(B) Only (2)
(C) Only (3)
(D) All (1), (2) and (3)
(E) None of these

12. India has a regional trade pact SAFTA. This pact is with members of which of the following group of countries ?
(A) IBSA                    (B) EU
(C) OPEC                   (D) BRIC
(E) SAARC

13. As reported in some news-papers/magazines some banks have decided to install Biometric ATMs so that fraudulent withdrawals can be prevented. Bio-metric ATMs will be able to do so as it also checks
1. Signatures of the card holdes.
2. Finger prints of the card holders.
3. Skin colour of the card holders.
(A) Only (1)
(B) Only (2)
(C) Only (3)
(D) Both (1) and (3)
(E) All (1), (2) and (3)

14. Which of the following schemes is launched specifically for helping Senior Citizens to avail loan by mortgage of their residential property ?
(A) English mortgage scheme
(B) Senior Capital Loan scheme
(C) Reverse Mortgage Loan scheme
(D) DEMAT Account Scheme
(E) None of these

15. Who amongst the following received the Nobel Prize 2007 for Medicine ?
1. Martin Evans
2. Mario Capecchi
3. Oliver Smiths
(A) Only (1)
(B) Only (2)
(C) Only (3)
(D) Both (1) and (3)
(E) All (1), (2) and (3) jointly

16. A summit of which of the following two countries took place for the first time recently which is being considered a big leap in the direction of diffusing conflict between them from last 50 years ?
(A) China-Russia
(B) Vietnam-USA
(C) China-Pakistan
(D) Russia-USA
(E) South-Korea-North Korea

17. The Gorkha Hill Council is in function in which of the following districts of West Bengal (SinceOctober 2007) ?
(A) Midnapore
(B) Birbhum
(C) Nadia
(D) Howrah
(E) Darjeeling

18. Prime Minister of India was on a visit to Russia in November 2007. Which of the following is/are the outcome of his meeting with Russian Leaders ?
1. Both the countries signed an agreement for their joint space programme.
2. India signed a nuclear deal with Russia for construction of four new Nuclear Reac-tions in Tamil Nadu.
3. India and Russia agreed to take a joint military action to stop insurgency problem in some parts of India.
(A) Only (1)
(B) Only (2)
(C) Both (1) and (2)
(D) Only (3)
(E) All (1), (2) and (3)

19. The Govt. of India has decided to take a major stake in Sakhalin IV and Sakhalin V oil fields. Both these oil fields are situated in which of the following countries ?
(A) Brazil
(B) Russia
(C) China
(D) Saudi Arabia
(E) None of these

20. The Planning commission of India has established a National Fund to improve the distribution of which of the following in the country ?
(A) Electricity
(B) Cooking gas
(C) Food grains through public distribution system
(D) Fresh currency notes
(E) None of these

21. The US economy is in a bad shape these days as a slow down is noticed in it in recent past. What will be its impact on Global economy in general ?
1. Dollar will be depreciated.
2. Export from European markets will gain strength.
3. Interest rates of short term loans in money market will shoot up sharply as demand for short term rupee loan will shoot up.
(A) Only (1)
(B) Only (2)
(C) Both (1) and (2)
(D) Only (3)
(E) All (1), (2) and (3)

22. As published in the newspapers the RBI has issued certain guide-lines to be followed by the Recovery Agents appointed by the banks. In addition to this the Indian Bank Association (IBA) has to formulate a special training course for them. Why RBI and IBA has to come into picture for such an issue which is the responsibility of the banks ?
1. RBI and Govt. were getting many complaints from the public about the misbehavior of Recovery agents.
2. Govt. of India is paying much emphasis on providing banking services to the poor section of society. News about ill treatment by agents or suicides due to inability to payback loans create a negative picture. RBI do not want this to happen.
3. Despite banks efforts to recover loans many people still do not wish to repay their loans intentionally. Recovery agents will help banks to get their money back by all possible means.
(A) Only (1)
(B) Only (2)
(C) Both (1) and (2)
(D) Only (3)
(E) All (1), (2) and (3)

23. The imports of which of the following items from Indiahas been lesser than its Exports of the same during 2007-08 ?
(A) Oil                 (B) Chemicals
(C) Steel              (D) Tea
(E) None of these

24. The Planning commission of India decided to fix the target growth of GDP during 11th Five year plan at 9%. What was the growth rate in 10th plan period ?
(A) 4%                (B) 8%
(C) 5•5%             (D) 7•6%
(E) 6•7%


1. (d) 2. (C) 3. (C) 4. (B) 5. (a)
6. (D) 7. (D) 8. (D) 9. (E) 10. (A)
11. (B) 12. (e) 13. (e) 14. (c) 15. (e)
16. (E) 17. (e) 18. (a) 19. (b) 20. (c)
21. (e) 22. (A) 23. (D) 24. (B)

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