RBI Grade B Finance & Management Quiz for Phase II 2023
RBI Grade B Finance & Management Quiz for Phase II 2023

RBI Grade B Finance & Management Quiz for Phase II 2023

Finance and Management (FM) Questions with the answer. RBI Grade B Finance and Management Note PDF. RBI Grade B FM Study Material PDF. RBI Finance and Management (FM) Books, PDF, Previous Papers, Question Set, and study material. As we all know that RBI Grade B Notification 2023 is out. The Reserve Bank of India (RBI) conducted the RBI Grade B Phase I Exam for the post of Grade B (Grade ‘B’ (DR) – (General) & others). It’s the right time when you should start your RBI Grade B 2023 Phase II preparation at full pace.

If you are preparing for RBI Grade B 2023 (Phase II), you will come across a section on “Finance and Management (FM)” wherein 65 questions will be there carrying 50 marks. Here we are providing you with “Finance and Management (FM) Questions for RBI Grade B” with answers based on the latest pattern of your daily practice.

Finance and Management (FM) Questions For RBI Grade B | Set-15


1. Read the given passage and answer the questions that follow based on the information mentioned in it.
Carol Jarrett uses the teaching as inquiry approach in her department to investigate what she labels “problems of practice”. Carol shares her experiences in the classroom with colleagues, encouraging an environment where teachers feel safe to talk about their practice. They reframe the conversation using the teaching as inquiry tool – describe the problem, identify possible solutions, make a change, evaluate. Carol recognizes that teachers need to take ownership of the process if the change is to be successful. She says it is important for participants to understand the change – what it is and why it is being prioritized. We think about our practice in terms of problems of practice. Not as a problem in a negative sense or a pejorative sense, but as a problem to be solved, a challenge. Then suddenly the conversation changes. So you’re moving away from ‘I’m failing, I’m not a particularly effective teacher’ into ‘Well this is quite interesting isn’t it? So how can we get around that?’ The benefits for teachers, when you look at problems of practice in a positive way, are that it actually then become safe to try things. It also surfaces what’s going on for them in their practice. They don’t have to hide things. They don’t have to revert to practice that perhaps isn’t effective. They can actually try things knowing that if it doesn’t work out, that’s OK, they’re going to have a safe conversation, it’s going to be about their learning, and then we look at solutions to how we move it forward.
Which of the following is NOT true about Servant leadership?

  1. A leadership style marked by going beyond the leader’s own self-interest and instead focusing on opportunities to help followers grow and develop.
  2. These leaders go beyond their self-interest and focus on opportunities to help followers grow and develop.
  3. Servant leadership may be more prevalent and more effective in certain cultures.
  4. Servant leadership is not value-free.
  5. This leadership increases team potency, which in turn leads to higher levels of group performance.

Show Correct Answers

Correct Answer: D. Servant leadership is not value-free.

Explanation: Scholars have recently considered ethical leadership from a new angle by examining servant leadership. Servant leaders go beyond their self-interest and focus on opportunities to help followers grow and develop. They don’t use power to achieve ends. They emphasize persuasion. Characteristic behaviors include listening, empathizing, persuading, accepting stewardship, and actively developing followers; potential. This leadership increases team potency, which in turn leads to higher levels of group performance.
Servant leadership is a leadership philosophy. Traditional leadership generally involves the exercise of power by one at the “top of the pyramid.” By comparison, the servant-leader shares power puts the needs of others first and helps people develop and perform as highly as possible. Servant leadership turns the power pyramid upside down; instead of the people working to serve the leader, the leader exists to serve the people. When leaders shift their mindset and serve first, they unlock purpose and ingenuity in those around them, resulting in higher performance and engaged, fulfilled employees.

2. Read the given passage and answer the questions that follow based on the information mentioned in it.
Carol Jarrett uses the teaching as inquiry approach in her department to investigate what she labels “problems of practice”. Carol shares her experiences in the classroom with colleagues, encouraging an environment where teachers feel safe to talk about their practice. They reframe the conversation using the teaching as inquiry tool – describe the problem, identify possible solutions, make a change, evaluate. Carol recognizes that teachers need to take ownership of the process if the change is to be successful. She says it is important for participants to understand the change – what it is and why it is being prioritized. We think about our practice in terms of problems of practice. Not as a problem in a negative sense or a pejorative sense, but as a problem to be solved, a challenge. Then suddenly the conversation changes. So you’re moving away from ‘I’m failing, I’m not a particularly effective teacher’ into ‘Well this is quite interesting isn’t it? So how can we get around that?’ The benefits for teachers, when you look at problems of practice in a positive way, are that it actually then become safe to try things. It also surfaces what’s going on for them in their practice. They don’t have to hide things. They don’t have to revert to practice that perhaps isn’t effective. They can actually try things knowing that if it doesn’t work out, that’s OK, they’re going to have a safe conversation, it’s going to be about their learning, and then we look at solutions to how we move it forward.
Which of the following is the most important strength of leadership?

  1. Focus
  2. Strategic planning
  3. Courage
  4. Cooperation
  5. Patience

Show Correct Answers

Correct Answer: B. Strategic planning

Explanation: Great leaders are outstanding at strategic planning. It’s another one of the most important leadership strengths. They have the ability to look ahead, to anticipate with some accuracy where the industry and the markets are going. Leaders have the ability to anticipate trends, well in advance of their competitors. They continually ask, “Based on what is happening today, where is the market going? Where is it likely to be in three months, six months, one year, and two years?” They do this through thoughtful strategic planning. Because of increasing competitiveness, only the leaders and organizations that can accurately anticipate future markets can possibly survive. Only leaders with foresight can gain the “first mover advantage.”

3. Read the given passage and answer the question that follow based on the information mentioned in it.
Although HRM has been considered as a key element in organizational success, its alignment to organizational strategic objectives has been confutative. The resource-based view emphasizes the need for this strategic alignment to gain competitive advantage through human resource competencies (O’Reilly & Pfeffer 2000; Wright, Dunford & Snell 2001). The behavioral perspective also argues that HR processes should be harmonized with the required employee behaviors to exceed organizational strategic objectives (Wright & McMahan 1992). Performance management is regarded as the key function in the discipline of HRM as organizational success relies on this evaluative aspect (Muczyk & Gable 1987). Performance management has evolved to be a broader organizational concept whereas individual evaluative measures are commonly described as performance appraisal (PA). The important role PA can play in influencing organizational outcomes has led researchers to explore new horizons in this discipline in the 21st century. Budworth and Mann (2011) report that PA has been one of the most researched disciplines in papers published in the Journal of Psychology between 2003 and 2007. Evaluating employees’ performance on pre-defined parameters (Armstrong 2009) has been highlighted as a differentiating factor among the market leaders and survivors (Lawler & Worley 2011).

Among the options given below who plays a vital role from beginning to end when it comes to decision making with regards to performance appraisal?

  1. Human Resource Development Department
  2. Strategic managers
  3. Human Resource Managers
  4. Employee’s immediate supervisor
  5. Line managers

Show Correct Answers

Correct Answer: E. Line managers

Explanation: Often the human resource department is responsible for coordinating the design and implementation of performance appraisal programs. However, it is essential that line managers play a key role from beginning to end. These individuals usually conduct the appraisals, and they must directly participate in the program if it is to succeed. Several possibilities exist with regard to the person who will actually rate the employee.

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4. Read the given passage and answer the question that follow based on the information mentioned in it.
The Indian IT industry is facing uncertain times, thanks to the recent political and social developments taking place globally. In such a time, India’s second largest software firm – Infosys – flagging concerns over transparency and corporate governance by questioning the compensation package of CEO Vishal Sikka may have a strong impact not only on Infosys as an organization, but on the Indian IT sector in general. Sources said the founders did not raise questions on Sikka’s performance as such, given that the entire IT industry has been witnessing slowing growth. However, some of the founders, led by NR Narayana Murthy, raised questions on certain decisions taken by the company in the last one year that they perceive as questionable.
According to them, the transparency and corporate governance at the company has been hit by the huge pay package paid to Sikka as salary and the amount paid to its former chief compliance officer David Kennedy, reports Business Standard. They also wanted the board to be prudent on setting the ambitious goal of achieving $20 billion in revenues by 2020. Under the current circumstances, achieving this ambitious target would mean doubling of revenues in the next three years. Founders of Infosys also felt that the board should have been more proactive in questioning the decisions taken by the executive team of the company. There were even suggestions that “value based members” namely TV Mohandas Pai, V Balakrishnan and Marty Subramanian should be brought back into the board. However, any likely decision regarding the composition of the board or the future plans of the company will be taken after discussion with key investors, the company said.
Minority shareholders with how many % voting rights also have the right to drag companies to Court for ‘oppression and mismanagement?’

  1. 20
  2. 10
  3. 7
  4. 15
  5. 9

Show Correct Answers

Correct Answer: B. 10

Explanation: The present corporate governance norms, enshrined in the Companies Act, SEBI listing regulations and Clause 49 of the listing agreement are the result of deliberations by these committees. Yet another committee — the Uday Kotak committee — has recently been tasked with a further review.
Today, India’s corporate governance framework requires listed companies to have independent directors manning one-third of their Board, disclose all related party deals, disclose comparative metrics on managerial pay, appoint audit and nomination committees, and require the CEO and CFO to sign off on the governance norms being met in the financial statements. Minority shareholders with 10 per cent voting rights also have the right to drag companies to Court for ‘oppression and mismanagement’.

5. Read the given passage and answer the questions(s) that follow.
Below given is the balance-sheet of a company.

Liabilities Amount (In Rs.)
Share Capital 1,00,000
Sundry Creditors 50,000
Bills Payable 50,000
Profit & Loss account 30,000
General Reserve 40,000
Debentures 40,000
Total 3,10,000

 

Assets Amount (In Rs.)
Land and Building 2,00,000
Plant and Machinery 1,00,000
Stock 20,000
Sundry Debtors 30,000
Bills Receivables 15,000
Cash in Bank 50,000
Total 4,10,000


Find the quick ratio for the above data.

  1. 15:20
  2. 19:20
  3. 14:15
  4. 9:10
  5. 7:12
Show Correct Answers

Correct Answer: B. 19:20

Explanation: Quick ratio= (Liquid Assets) / (Liquid liabilities)
= (Sundry debtors + Cash +Bills receivables) / (Sundry creditors+ Bills payable)
= (30,000+ 50,000 + 15,000) / (50,000+50,000)
= 19:20

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6.Read the given passage and answer the questions(s) that follow.
Below given is the balance-sheet of a company.

Liabilities Amount (In Rs.)
Share Capital 1,00,000
Sundry Creditors 50,000
Bills Payable 50,000
Profit & Loss account 30,000
General Reserve 40,000
Debentures 40,000
Total 3,10,000

 

Assets Amount (In Rs.)
Land and Building 2,00,000
Plant and Machinery 1,00,000
Stock 20,000
Sundry Debtors 30,000
Bills Receivables 15,000
Cash in Bank 50,000
Total 4,10,000

Find the proprietary ratio for the above data.

  1. 15:31
  2. 16:47
  3. 17:41
  4. 31:41
  5. 23:41
Show Correct Answers

Correct Answer: C. 17:41

Explanation: Proprietary ratio = (Shareholders’ Fund) / (Total Assets)
= (1,00,000 +30,000 +40,000) / 4,10,000
= 17:41

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7. Read the given passage and answer the questions(s) that follow.
Below given is the balance-sheet of a company.

Liabilities Amount (In Rs.)
Share Capital 1,00,000
Sundry Creditors 50,000
Bills Payable 50,000
Profit & Loss account 30,000
General Reserve 40,000
Debentures 40,000
Total 3,10,000

 

Assets Amount (In Rs.)
Land and Building 2,00,000
Plant and Machinery 1,00,000
Stock 20,000
Sundry Debtors 30,000
Bills Receivables 15,000
Cash in Bank 50,000
Total 4,10,000

Find the current ratio for the above data.

  1. 23:20
  2. 21:20
  3. 20:31
  4. 21:30
  5. 23:31
Show Correct Answers

Correct Answer: A. 23:20

Explanation: Current ratio = (Current Assets) / (Current Liabilities)
= (Sundry debtors + Cash +Bills receivables+ Stock) / (Sundry creditors+ Bills payable)
= (30,000+ 50,000 + 15,000+20) / (50,000+50,000)
= 23:20

8. Read the following passage and answer the question(s) that follow.

The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector. As of August 2013, the total AUM stood at Rs. 7.66 trillion. However, growth rates of AMCs have come down from the peak levels seen in the early 2000s.One of the biggest reasons behind this is the lack of healthy participation from a large part of the country.

What is the current AUM/GDP ratio in India?

  1. 5%
  2. 10%
  3. 23%
  4. 32%
  5. 34%

Show Correct Answers

Correct Answer: B. 10%

Explanation: The AUM/GDP ratio is one of the best indicators of how much of the yearly income in a given economy is being invested into mutual funds. The total Assets under Management (AUM) to GDP ratio of India stands at a mere 10%, way below the global average of 55%.

9. Read the following passage and answer the question(s) that follow.

The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector. As of August 2013, the total AUM stood at Rs. 7.66 trillion.However, growth rates of AMCs have come down from the peak levels seen in the early 2000s.One of the biggest reasons behind this is the lack of healthy participation from a large part of the country.

Which is the first non- UTI mutual fund in India?

  1. ICICI prudential MF
  2. Motilal Oswal MF
  3. SBI MF
  4. Kotak MF
  5. Mirae asset India MF
Show Correct Answers

Correct Answer: C. SBI MF

Explanation: The mutual fund industry in India began in 1963 with the formation of the Unit Trust of India (UTI) as an initiative of the Government of India and the Reserve Bank of India. Much later, in 1987, SBI Mutual Fund became the first non-UTI mutual fund in India. Subsequently, the year 1993 heralded a new era in the mutual fund industry. This was marked by the entry of private companies in the sector. After the Securities and Exchange Board of India (SEBI) Act was passed in 1992, the SEBI Mutual Fund Regulations came into being in 1996. Since then, the Mutual fund companies have continued to grow exponentially with foreign institutions setting shop in India, through joint ventures and acquisitions. As the industry expanded, a non-profit organization, the Association of Mutual Funds in India (AMFI), was established on 1995. Its objective is to promote healthy and ethical marketing practices in the Indian mutual fund Industry. SEBI has made AMFI certification mandatory for all those engaged in selling or marketing mutual fund products.

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10.Read the following passage and answer the question(s) that follow.

The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector. As of August 2013, the total AUM stood at Rs. 7.66 trillion. However, growth rates of AMCs have come down from the peak levels seen in the early 2000s. One of the biggest reasons behind this is the lack of healthy participation from a large part of the country. The mutual funds industry in India began in _______?

  1. 1957
  2. 1963
  3. 1974
  4. 1988
  5. 1994

Show Correct Answers

Correct Answer: B. 1963

Explanation: The mutual fund industry in India began in 1963 with the formation of the Unit Trust of India (UTI) as an initiative of the Government of India and the Reserve Bank of India. Much later, in 1987, SBI Mutual Fund became the first non-UTI mutual fund in India. Subsequently, the year 1993 heralded a new era in the mutual fund industry. This was marked by the entry of private companies in the sector. After the Securities and Exchange Board of India (SEBI) Act was passed in 1992, the SEBI Mutual Fund Regulations came into being in 1996. Since then, the Mutual fund companies have continued to grow exponentially with foreign institutions setting shop in India, through joint ventures and acquisitions. As the industry expanded, a non-profit organization, the Association of Mutual Funds in India (AMFI), was established on 1995. Its objective is to promote healthy and ethical marketing practices in the Indian mutual fund Industry. SEBI has made AMFI certification mandatory for all those engaged in selling or marketing mutual fund products.

Finance and Management (FM) Quizzes For RBI Grade B 2023

Set-15 Set-14 Set-13 Set-12 Set-11
Set-10 Set-9 Set-8 Set-7 Set-6
Set-5 Set-4 Set3 Set-2 Set-1

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