RBI Grade B Finance & Management Quiz for Phase II 2021
RBI Grade B Finance & Management Quiz for Phase II 2021
Finance and Management (FM) Questions with the answer. RBI Grade B Finance and Management Notes 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 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 2021 Phase II preparation with full pace.
If you are preparing for RBI Grade B 2021 (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.
RBI Grade B Finance & Management Questions with Answer| Set-7
1. The public sector policy of the 1991 has identified strategic areas and non- strategic areas for the public sector. The government decided to concentrate only on strategic sector by withdrawing the public sector from most of the non-strategic sectors. Which of the followings are not in strategic areas?
A. Postal Services
B. Railway transport
C. Atomic Energy
D. Arms and Ammunitions
E. None of the above
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Correct Answer: A. Postal Services
Explanation-The following are in the strategic areas:
(i) Arms and Ammunitions and the allied items of defence equipment.
(ii) Atomic Energy (Except in the areas related to the generation of nuclear power and application of radiation and radio-isotopes to agriculture and medicine)
(iii) Railway Transport.
2. Theory Z by William Ouchi is the mix of Theory X and Y from Mc.Gregor. What are the features of Theory Z?
A. Long-term employment
B. Slow Promotion
C. Job Rotation
D. Collective Decision Making
E. All of the above
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Correct Answer – E. All of the above
Explanation- Theory Z has the following characteristics:
(i) Collective Decision Making
(ii) Job Rotation
(iii) Slow Promotion
(iv) Long-term employment
(v) Focus on Training
(vi) Formalised measures
(vii) Individual personality
(viii) Care for personal circumstances
3. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day. But he did not give him the authority of requisition tools and materials from the stores department. Which principle of management is violated here. A. Principle of Equity
B. Principle of Scalar Chain
C. Principle of discipline
D. Principle of Authority and Responsibility
E. None of these
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Correct Answer – D. Principle of Authority and Responsibility
Explanation:In this case the principle of ‘Authority and Responsibility’ is violated. Fayol suggested that there must be a balance between authority and responsibility. Authority and responsibility must go hand in hand. Responsibility without adequate authority will make the subordinate ineffective, i.e., he will not be able to perform his duties properly. At the same time giving authority without fixing responsibility may lead to misuse of authority.
4. Manisha is appointed in a company. Her job is to convert symbols, signs or pictures that the company receive as a part of the message, in a meaningful message that can be easily comprehend and understood by the management. Her job in the communication process is that of a/an_______ A. Encoder
B. Decoder
C. Sender
D. Receiver
E. None of these
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Correct Answer – B. Decoder
Explanation- A communication process involves the following:
1) Sender/Communicator: It is the person who is sending the message.
2) Message: It is the subject matter of communication.
3) Encoding: It refers to the process of converting the message into communication symbols.
4) Media/Transmission: A message is sent by some medium, it can either be face–to–face conversation, through letter, telephone, E–mail etc.
5) Receiver: A receiver is a person to whom the message is sent
6) Decoder: It is the person who is responsible to make the message understandable, if the message is encoded using some technique.
7) Feedback: It is a signal showing that the message is being received and understood by the receiver.
5. Under which theory of Learning Human Resource development, educators focus on improving mental processes rather than physical actions?
A. Behaviourism
B. Cognitivism
C. Connectivism
D. Constructivism
E. None of these
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Correct Answer: B. Cognitivism
Explanation- Under Cognitivism theory of learning human resource development, educators focus on improving mental processes rather than physical actions.
6. A manager during appraisal is rating everyone as either high or low. What type of rating tendency is being shown by the manager?
A. Bevioural Tendency
B. Lenient/strict Tendency
C. Biasing Tendency
D. Liaisoning tendency
E. None of these
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Correct Answer: B. Lenient/strict Tendency
Explanation:Managers rating have various tendencies. Some are:
(i) Halo Effect: The tendency to make inappropriate generalizations from one aspect of a person’s job performance.
(ii) Leniency: The tendency to evaluate all people outstanding or give inflated ratings.
(iii) Strictness: The tendency to rate all people at the lower end of the scale.
(iv) Central tendency: The tendency to evaluate every person as average.
7. A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?
A. It is the impact of the price levels of previous year on the calculation of inflation rate.
B. It is the impact of the surge in demand due to rapid economic growth
C. It is the impact of drastic deficiency in supply due to failure of crops.
D. Both A and B
E. None of the statements is correct.
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Correct Answer – A. It is the impact of the price levels of previous year on the calculation of inflation rate.
Explanation:It is the impact of the price levels of previous year on the calculation of inflation rate.
8. Gross Profit Ratio of a company is 20%. Its cash sales are ₹ 3,00,000 and credit sales are 90% of the total sales. The indirect expenses of the company are ₹ 80,000. Find the Net Profit Ratio of the company.
A. 15%
B. 25%
C. 17.33%
D. 22.67%
E. 20%
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Correct Answer – C. 17.33%
Explanation- Cash Sales = ₹ 3,00,000
% of Cash sales = 100% – Credit Sales%
= 100 % – 90% = 10%
10% of Total Sales = Cash Sales
Total Sales =3000 × 100/10 = ₹ 30,00,000
Gross Profit Ratio = 20%
So, Gross Profit = Total Sales × GP Ratio
= 30,00,000 × 20/100
= ₹ 6,00,000
Net Profit = GP – Indirect Expenses
= 6,00,000 – 80,000
=₹ 5,20,000
Net profit ratio = 520000/3000000 x 100 = 17.33%
9. Which financial organizations has launched an artificial intelligence (AI) based chatbot, PAi, to create awareness around its products like FASTag, RuPay, UPI, AePS on a real time basis?
A. Reserve Bank of India (RBI)
B. National Electronic Clearing Service (NECS)
C. Institute for Development and Research in Banking Technology
D. National Payment Corporation of India (NPCI)
E. Clearing Corporation of India Limited (CCIL)
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Correct Answer – D. National Payment Corporation of India (NPCI)
Explanation- National Payment Corporation of India (NPCI) has launched an artificial intelligence (AI) based chatbot, PAi, to create awareness around its products like FASTag, RuPay, UPI, AePS on a real time basis. This is yet another NPCI’s initiative to improve digital financial inclusion in India. The AI virtual assistant, PAi is available round the clock helping users with access to accurate information on NPCI products. Customers can ask their queries in English and Hindi, via text or voice on the websites of NPCI, RuPay, and UPI Chalega. Through PAi, users get verified automated responses to their queries on all NPCI’s products. PAi would also be accessible to global RuPay Cardholders as well.
10. Which of the following statement is true for the enlightened self-interest model of CSR? A. Organisation should follow the legislation and abide by the law.
B. Organization should consider what a shareholder would want.
C. An organization’s best interest is to put it’s needs before the ethics.
D. It is in an organization’s own best interest to act in an ethical way.
E. All of the above
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Correct Answer – D. It is in an organization’s own best interest to act in an ethical way.
Explanation- The Enlightened Self-Interest model of CSR states that an organization should act in ethical way. Enlightened Self-interest advances the belief that ethical behaviour can be good for business – for example, gaining a competitive edge by adding value to an organisation’s products or increasing the company’s public reputation.
