Finance & Management (FM) Questions For RBI Grade B Phase II 2023 | Set-9

Correct Answer: A. Inventory management is efficient and sales were high due to overstocking items

Explanation-It indicates efficient management of inventory because more frequently the stock is sold, lesser amount of money is required to finance the inventory.

Correct Answers: B. Peer2Peer Lending

Explanation- P2P lending, a form of crowd funding, has become increasingly popular globally post financial crisis of 2008. P2P based lending platform seeks to connect interested investors and borrowers with matching requirements without any involvement of a formal financial institution, unlike other Fin-tech companies which act as intermediaries between the banks and borrowers. It caters to the borrowers without the need for collaterals and at affordable rates which are lower than the bank rates.

Correct Answers: C. To plan to achieve its goals

Explanation- The budgetary control aims at the maximization of profits of the enterprise.To achieve this goal, proper planning and coordination of different functions are undertaken. There is legal control over different capital and revenue expenditures.

Correct Answer – C. Underlying

Explanation-Derivatives derive their names from their respective underlying assets.Derivatives are financial instruments that have values derived from other assets like stocks, bonds, or foreign exchange. Derivatives are sometimes used to hedge a position (protecting against the risk of an adverse move in an asset) or to speculate on future moves in the underlying instrument.

Correct Answer: C. listed companies

Explanation- As per the Companies (Share Capital and Debentures) Rules 2014, all listed companies, NBFCs, HFCs and unlisted companies were to create a DRR with 25 per cent of the value of outstanding debentures from their profits.

Correct Answer: A. Social

Explanation: The CSR pyramid with four components was published by Carroll in 1979.

The four components are in order of rank- Economic, Legal, Ethical and Philanthropic.

Carroll stated that CSR is the behaviour of firms that is economically sustainable, follows the law, is ethical and caters to social responsibility and charity.

Correct Answer – C. James MacGregor Burns

Explanation: Transformational model of leadership is the final theory of leadership that has attracted a lot of interest in recent years.James MacGregor Burns has developed the theory of Transformational leadership.

Correct Answers: A. Nodes that do not split further

Explanation-There are various terms in decision tree model:
Root node, Splitting, decision node, leaf, pruning, branch, parent and child node.

Leaf is the node that do not split further. It is also called terminal node.

Correct Answer – B. Instrumental Values

Explanation-Instrumental values are the acceptable modes of conductor that are known to be the means of achieving the terminal values.Its example includes Being honest, sincere, ethical, and being ambitious.

Correct Answer – C. Kirkpatric

Explanation-The Kirkpatrick Four-Level Training Evaluation Model is designed to objectively measure the effectiveness of training. The model was created by Donald Kirkpatrick in 1959, with several revisions made since then.The four levels are Reaction, Learning, Behavior, and Results