CAIIB ABM MCQs2

1) In the Keynes model above, which is independent:
a) Investment b) Consumption c) National income d) Consumption and investment
2) How many motives for demanding money has been given by Keynes: a) 1 b) 2 c) 3 d) 4
3) Recession is associated with fall in: a) Demand b) Supply c) Disinvestment d) Investment
4) Devaluation means: a) Fall in Marginal utility of Money b) Fall in printing of currency c) Risk in black money d) Fall in the value
of money in terms of foreign currency
5) Acute inflationary situation: a) Makes savings in the form of bank deposits less attractive b) Makes savings more attractive c)
Arises due to liquidity trap d) All the above
6) Inflation means: a) Increase in price b) Decrease in value of money c) Boom d) All of the above
7) The problem of unemployment in rural areas is mainly due to: a)Seasonal and under employment b) Frictional unemployment
c) Structural unemployment d) Technical Lriernpleyrnent
8) NNP for a given year can be defined as: a) Market value of final goods only b) The market value of all final goods and services c)
The market value of all final services only d) None of the above
9) LiqUidity preference is the term, which is used to refer to: a) The Reserve Bank of India's shareholdings in other financial
institutions b) The extent to which investors prefer to keep their assets in money c) The community's preference for a goldbacked
currency d) An inducement to save.
10) Which of the following are among the major determinants of the interest rate in the Keynesian theory?
a) People's desire to hold money and to keep their wealth in liquid form b) The available stock of money c) The intensity of
speculation on the stock exchange d) The value of gold and silver on the world's markets
11) The famous book written by J.M. Keynes is entitled: a) Principles of Economics b) Law of Markets c) The General Theory of
Employment, Interest and Money d)None of the above.
12) To a layman, investment means putting his money in a financial asset like bonds, fixed deposit etc. What does it mean to an
economist: a) Purchase of machines b) Stock of durable goods c) Purchase of real capital assets d) All of the above
13) The liquidity preference arises due to: a) Transaction Motive b) Precautionary Motive c) Speculative Motive d) All of these
14) Liquidity trap is likely to result when: a) Rate of Interest at its lowest b) Rate of Interest at its highest c) No change in supply
of money d) When an increase in the supply of money fails to reduce the rate of interest
15) Which theory is called the Neo-Classical theory of rate of interest?
a) Risk Theory b) Liquidity Preference Theory c) a and b d) Loanable Funds Theory.
16) The agency estimating the National Income of India is:
a) Reserve Bank of India b) Planning Commission c) Ministry of Finance d) Central Statistical Organisation
17) The goals of monetary policy do not include a) Maximum output b) Full ernploymeot
c) Price stability ,d) Maximum tax revenue
18) Gross National Product (GNP) is: a) The total output of goods and services produced by the country's economy b) The total
domestic and foreign output claimed by residents of the country c) The sum of gross domestic product and investment d)
National income minus national expenditure
19) If an economy is in equilibrium at the point where plans to save and to invest are equal, then government expenditure must
be: a) Curtailed b) Equal to government income c) Increased d) None of the above


20) Which of the following is correct regarding the gross domestic savings in India?
a) Contribution of corporate sector is largest b) Contribution of government sector is the largest c) Contribution of household
sector is the largest d) None of these
21) NNP (Net National Product) or National Income is the money value of
a) Final goods and services produced annually in the economy b) Annual service generation in the Economy
c) Tangible goods produced annually in the economy d) Tangible goods available in the economy
22) Which of the following is included in the calculation of gross domestic product? a) Personal consumption expenditure b)
Gross domestic investment c) Purchase by the government d) All of the above
23) Gross National Product is greater than gross domestic product when: a) NFI (from abroad) > 0 b) NFI < 0 c) NFI = 0,d) NFI = -1
24) Which of the following is deducted from gross national product in order to estimate net national product?
a) Depreciation b) compensation of employees c) expenditure on buildings d) expenditure on raw material
25) Changes in the standard of living in a country are best reflected in changes in the: a) Social Welfare b) Economic
Welfare c) Per capita income at rent prices d) Per capital income at constant prices
26) Whicl: is the primary indicator to recognise a country's rate of economic growth? a) Increase inter per capita income b)
Setting of more industries c) Rate of growth in national income More exports
27) NationalIncome is based on: a) Total Production x prices b) Rent + wages + Interest,+ Profit c) Domestic Income + NFI d) The
sum of all factor incomes e) All the above
28) Net National Production excludes:
a) Gross Investment b) Netinvestment c) Foreign Investment d) Replacement investment
29) Here are four statements about various national income / expenditure I product relationships. Which one of the following is
true: a) GNP less NIT = NNP b) GNP less NFI = NNP c) GNPplus depreciation = NNP d) GNP less depreciation allowances = NNP
30) The term GDP incorporates the economic activity: a) Taking place within the geographical boundary of the country b) Within
the land territorial c)Within water territorial d) Within air space
31) The term "Hindu rate of growth" refers to the 3.5% per annum growth rate achieved by the Indian economy over the first six
Five-Year Plans. The term was coined by a) Chakravaty b) J.N. Bhagwati c) Raj Krishna d) K.N. Raj
32) Essential services owned and controlled by government is called:
a) Public monopoly b) Public utility c) Public Sector d) All of the above
33) Which of the following is not a fiscal monopoly?
a) Printing of currency b) Minting of coins c) Electricity supply d) None of the above
34) In a planned economy the economic problem of what shall be produced is determined primarily by:
a) Computers deciding what consumers want. b) Direction by the oovernment. c) The pattern of consumer's spending d) The
independent decisions of entrepreneurs.
35) Development means economic growth plus: a) Price stability b) Social change c) Inflation d) Deflation
36) Which Plan recommended Zero-Based Budgeting (ZBB) as a step to control public expenditure?
a) Fifth Plan b) Sixth Plan c) Seventh Plan d) Eighth plan
37) All revenues received, loans raised and money received in repayment of loans by the Union Government go into. a) Public
Account of India b) Contingency Fund in India c) Consolidated fund in India d) none of the above
38) Which one of the following is not directly the concern of the economist? .a) Choices relating to location of a steel plant b)
Bargaining between the workers' unions and the employers c) Effects of a change in money supply. d) Imposition of tax to
discourage cigarette smoking
39) Customs duties, export duties, corporation taxes, taxes on capital value of assets (excluding agricultural land of individuals
and companies) ate: a) Taxes and duties levied by the Centre but wholly appropriated by the States b) Taxes and duties levied by
the Centre but collected by the States c) Taxes and duties that accrue wholly to the Union Government d) Taxes levied and
collected by the Union but which are shared with the States.
40) "Funded debt" means: a) All Government securities which are marketable on the stock exchange market b) All private
securities c) Shares of Companies d) KisanVikasPatras
41) "Annual Financial Statement" is another name of:
a) Balance of payment b) Fiscal Budget, c) Budgetd) Debt & Credit
42) "Multi-Currency Basket" means: a) Relationship with world bank b) Currency + coins c) Number of major international
currencies to which the external value of the Indian rupee is linked d) None of the above
43) Which of the following is not a seiective credit control measure?
a) Rationalizing of Credit b) Open market observations c) Changes in the statutory liquidity ratio d) a and -c
44) Public finance is said to be: a) Science of taxes and pending b) Science of demand and supply of money c) Science of money
and cost d) Science of income and expenditure
45) One of the distinctions between public finance and private finance is that:
a) The State adjusts "income to expenditure' while an individual adjusts "expenditure to income" b) The State maximizes the

general welfare of the public while an individual maximizes his own satisfaction c) The State has no coercive powers while the
individual has d) The State cannot borrow money while the individual can get loans
46) A tax takes away a higher proportion of one's income rise is termed is:
a) Proportional Tax b) Indirect Tax c) Regressive Tax d) Progressive Tax
47 Co orate tax is imposed by:
a) Local Government b) Central Government c) State Government d) Both Central and State Government
48) Which of the following are direct taxes? a) Gift tax b) Income tax c) Corporation tax d) All of the above
49) From the following, which is not a direct tax?
a) Tax on wealth b) Tax on entertainment c) Tax income d) Tax on expenditure
50) An Direct tax is one where: a) Tax is levied always on property b) Points of impact and incidence are different c) Tax is levied
on wealth d) Points of impact and incidence are the same
51) The name of Indirect tax is: a) Income tax b) Sale tax c) Corporate tax d) Wealth tax
52) A regressive tax will tend to redistribute income more: a) Equally b) Equitably c) Unequally d) Inequitably
53) Which of the following does not grant any tax rebate?
a) Indira VikasPatra b) Public Provident Fund c) National Saving Scheme d) National SavingCertificate
54) The Indian Income tax is:
a) Direct and progressive b) Obssessive c) Indirect and proportional d) Direct and proportional
55) Temporary tax levied to obtain additional revenue is called: a) Fee b) Surcharge c) Cess d) Rate
56) Which of the following taxes is/are levied by the Central Govt. and collected appropriated by the States?
a) Estate Duty b) Stamp Duties c) Passenger and goods tax d) Taxes on Newspaper
57) Taxes raised are credited into:
a) Consolidated Fund b) Public Accounts c) Contingency Accounts ,d) Private Accounts
58) Generally tax on production are: a) Indirect taxes b) Both A and B c) Direct taxes d) None of the above
59) Tax on incomes is: a) Indirect b) Both A and B c) Direct d) None of the above
60) Which of the following taxes is levied on services?
a) Personal tax b) Value added tax c) Capital gains tax d) Corporate tax
61) Income tax is raised by:a) Local Government b) Central Government c) Municipality d) State Government
62) Sales tax is levied by: a) Local government b) State government c) Central government d) None of the above
63) Union Excise Duties are a part of Central Government's:
a) Tax revenue b) Capital receipts c) Non-tax revenue d) None of the above
64) All taxes come under: a) Capital receipts b) Revenue receipts c) Public debt d) Both A and C
65) In India, the States gets maximum income from:
a) Sales tax b) State Excise duties c) Land Revenue d) Agricultural Income tax
66) Progressive tax in India is: a) Income tax b) Wealth tax c) Corporate tax d) Sales tax
67) Which of the following is a direct tax? a) Sales tax b) Entertainment tax c) Excise duty d) Estate duty
68) Which of the most important source of revenue to the State Government of India ?
a) Land Revenue b) Agriculture Income-tax c) State excise duties d) Sales tax
69) A budget is the summary of:
a) Proper allocation of resources b) Income reallocation c) Resource reallocation d) Revenue and expenditure
70) The budget deficit refers to the difference between all-revenue and expenditure of: a) Revenue account only b) Increased
government expenditure c) Capital account only d) Both revenue and capital accounts
71) Borrowing from capital market is a part of: a) Revenue budget b) Capital budget c) Both a and b d) None
72) Revenue deficit in India is: a) Negative b) Positive c) Zero d) None of 'he above
73) Capital deficit in India is: a) Positive b) Zero c) Negative d) None of the above
74) Funds, which do not belong to the government, are?
a) Consolidated fund b) Contingency fund c) Public accounts d) None of the above
75) Which budget in India is passed separately? a) Airlines b) Railways c) Defence d) Atomic energy
76) Which one of the following cannot be influenced by budgetary policy? a) Power of private monopolies
b) Balance of trade c) General level of prices d) Regional distribution of employment
77) Which budget is measured in financial terms only?
a) Dominance budget b) Programme performance budget c) Zero-base budget d) Central budget
78) Deficit Financing means: a) Government spends in excess of revenue and capital receipt to that budget deficit in incurred
which is financed by borrowing from the RBI. b) Difference of total expenditure & income revenue from all sources. c) Difference
in borrowing an internal and external resources d) Capital expenditure on items of public construction, public enterprises and
public borrowings.
79) The need for deficit financing in India arises due:

a) Failure of the government to mobilize the desired volume of surplus for the public sector plans. b) The rapidly growing
expenditure incurred by the government c) Neither A nor B. ' d) Both A and B
80) Deficit financing leads to: a) Inflation b) Capital formation c) Neither A nor B ?d) Both A and B
81) Deficit financing means: a) Difference in borrowing and internal and external resources b) Capital expenditure on items of
public construction, public enterprises and public borrowings c) Government spends in excess of revenue and capital receipts so
that budget deficit is incurred which is financed by borrowing from the RBI. d) Difference of total expenditure and income by
revenue from all sources
82) The effect of deficit financing is: a) Never inflationary b) Always inflationary c) Sometimes inflationary and sometimes not so
depending cn conditions of the economy and the dose of deficit financing.d) None of these
83) The direct effect of deficit financing is:
a) Deficit financing leads to extra money supply which in turn pushes up prices b) Demand and supply both increase c) The
price situation comes under complete control dj Deficit financing leads to extra money supply, which in turn makes market more
& more competitive.
84) Fiscal policy is related to: a) Exports and Imports b) Public revenue and expenditure c) Issues and circulation of currencies d)
Monetary Control measures
85) A restrictive monetary-fiscal policy is a good way to deal with:
a) Demand— shift inflation b) Any short of inflation that occurs when the economy falls below full employment c) Demand — pull
inflation d) Cost — push inflation
86) Grants—in-aid given by the Centre to the states is meant: a) To cover the gaps on revenue accounts. b) For flood control c)
Po( boosting agriculture in the State. d) For financing State plan projects
87) The finance commission is appointed every: a) 7 years b) 6 years 'C) 5 years d) 3 years
88) The Narsimham Committee submitted its report to the government on:
a) Depoliticising appointments in public sector undertakes b) Import and Export c) NPA d) Banking structure
89) "Interest is the reward for pure waiting." Which theory of interest explains it? a)Time Preference Theory b) Classical Theory c)
Liquidity Preference Theory d) Loanable Funds Theory
90) What is not true for the Classical theory of interest? a) Demand and Supply Theory b) Saving-Investment Theory c) Nonmonetary
Theory d) Monetary Theory of Interest
91) The Loanable Funds Theory of interest is also known as: a) The neo-classical theory of interest b) The classical theory of
interest c) The real theory of interest d) The modern theory of interest
92) Rate of interest is a function of I, S, M, r = f (I, S, M, L) is explained by which of the following theories? a)Liquidity Preference
Theory b) Saving-Investment Theory c) Loanable Funds Theory d) Modern Theory
93) For which of the following motives for liquidity preference, the demand for liquidity is determined by the rate of interest? a)
Transaction motive b) Precautionary motive c) Speculative motive d) All the three motives.
94) Which of the following is known as monetary theory of interest?
a) Loanable Funds Theory b) Modern Theory c) Liquidity Pi eference Theory d) Saving-Investment Theory
95) What is not true of the modern theory of interest?
a) Neo-Keynesian Theory b) Hicks and Hansen's synthesis c) Monetary Theory d) IS-LM Curves Analysis
96) Which of the following is not a c4Idracteristic of business cycles?
a) Recurrent in nature b) Periodicity c) Regular d) Cumulative
97) Who gave innovation theory of business cycles ? a) Pigou b) .1. A. Hobson c) Schumpeter d) J. Tinbergen
98) Which of the following assumptions is not correct in relation to Hicks' theory of business cycle ?
a) The equilibrium of the economy is influenced by changes in consumption and investment b) Fall employment is the ceiling of
expansion c) Autonomous investment increases at some constant rate even during depression d) Accelerator remains operative
in all phases of business cycle, but the multiplier stops operating during depression
99) Economic growth refers to :
a) An increase in per capita income at current prices b) A sustained increase in per capita output c) An increase in income and
output in real terms and not in money d) An increase in economic welfare
100) National income differs from NNP at market prices by the amount of : a) Current transfers from the rest of the world, b) Net
indirect taxes .9-) National debt interest, d) It does not differA
NSWER
1 A 2 C 3 A 4 D 5 A 6 B 7 A 8 B 9 B 10 C
11 C 12 C 13 D 14 A 15 D 16 D 17 D 18 B 19 B 20 C
21 A 22 D 23 A 24 AA 25 D 26 C 27 E 28 D 29 D 30 A
31 C 32 D 33 C 34 B 35 B 36 C 37 C 38 A 39 C 40 A
41 C 42 C 43 D 44 D 45 A 46 D 47 B 48 D 49 B 50 B
51 B 52 C 53 A 54 A 55 B 56 A 57 A 58 C 59 C 60 B
61 B 62 B 63 A 64 B 65 A 66 A 67 D 68 D 69 D 70 D
71 B 72 A 73 A 74 C 75 B 76 A 77 B 78 A 79 D 80 D
81 C 82 C 83 A 84 B 85 B 86 A 87 C 88 D 89 B 90 D
91 A 92 C 93 C 94 C 95 C 96 C 97 C 98 D 99 B 100 B

CAIIB ABM MCQs1

1) Micro-economic theory studies how an economy determines.
a)The price of goods b)The price of services c)The price of economic resources d) All of the above.
2) A producer's positively sloped supply curve for a commodity represents. a)In one sense a maximum and in another sense a minimum
boundary of the.producer's intentions. b)A maximum boundary of the producer's intentions.c)A minimum boundary of the producer's
intentions. d)None of the above.
3) The theory of distribution refers to: a)The distribution of income among various factors of the production. b)The distribution of income
among different individuals in the economy. c)Both of the above d)None of these
4) Interest is reward for parting with liquidity according to: a) B. Ohlin b) Von Haberler c) J.M. Keynes d) Alfred Marshall
5) Economics may be divided into macro-economics and micro-economics. Among the subject matter of micro economics may be found: a)The
nature of value in exchange.b)The size of a country's national income c)The allocation of resources among competing uses d) The relative prices
of specific services.
6) The statement that'economics is positive and not normative' means:
a)That economics can be used to prove that capitalism is better than socialism.b)That economics tells us what kind of economic behaviour or
policy is wholesome and what evil c)That economics tells policy makers which alternative to choose from among several efficient ones. d)That
economics can only indicate consequences of policies, choices, or conditions.
7) Which of the following statements is incorrect? a)Micro-economics is primarily concerned with the problem of what, how and for whom to
produce.b)Micro-economics is primarily concerned with the behaviour of individual decision making units when at equilibrium.c)MiCroeconomics
is primarily concerned with the time path and process by which one equilibrium position evolves into another d)Micro-economics is
primarily concerned with comparative static rather dynamics.
8) Economic laws may be described as: a)Principles derived from analysis of price input / output determination. b)Generations concerning the
economic behaviour of individuals and institutions.c)Forecasts in quantitative terms of the economic development of society.d)Expression of the
basic features of competition.
9) The main difference between positive economics and normative economics is that the former. a)Discusses the ethical implications of its
laws.b)Concerns itself only with hypotheses which can generally be tested.c) Is based on the value judgements of economists.d)Considers
carefully the political significance of its laws for a democratic society.
10) Adam Singh advocates: a) Laissez-faireb) Division of Labour c) Both of the above d) None of the above
11) The term'consumer goods' is used by economists to refer to: a) Goods produced for consumers in a free market only.b) Goods other than
free goods, whose use directly satisfies consumers wants.c) Goods produced by consumers in return for a wage.d) Goods which are used by
consumers in order to earn their living
12) The basic characteristic of a Capitalistic economy is: a) Full employment b) The private ownership of the means of production.c) An absence
of monopoly d) Large-scale production in primary industries.
13) In a free capitalist society the allocation of the factors of production among the various productive activities is determined by: a) The pattern
of consumer's spending b) The traditional employment of Locals c) Decisions of the Government d) The wealth of the entrepreneurs.
14) Who believed that an automatic equilibrating mechanism of the perfectly competitive market, known as'invisible hand' tended to maximize
national wealth: a) Adam Smith b) Keynes c) J.B. Say d) None of the above
15) The fundamental economic problem being faced is one of: a) Consumer's choice b) Decision-making by the governmentc) 'Multiplicity of
wants and scarcity of resources.d) Shortage of labour.
16) Which one of the following is not directly the concern of the economist? a) Aid to underdeveloped countries b) The effect of an increase in
Bank rate c) The choice between alternative sites for a factory d) The use of taxation to discourage smoking of cigarettes.
17) The meaning of the word'economic' is most closely connected with the word: a) Free b) Scarce c) Unlimited d) Restricted
18) Which of the following is not an economic problem?
a) Deciding between extra paid work and extra leisure. b) Deciding between different ways of spending leisure lime . c) ;:eciding on the level and
form of personal saving d) Deciding between expenditure on one good and another.
19) Which one of the following statement is not true?
a) Exchange is one method of helping to solve the basic economic problem. b) The basic ecolomic problem is one of choice.c) Choice is necessary
because of Limited wants.d) The means to satisfy wants i.e., the factors of production, are limited.
20) Who gave scarcity definition of economics? a) Adam Smith b) Robbins c) Keynes d) J.B. Say
21) Who is known as the Father of Economics? a) Keynes b) Ricardo c) Adam Smith d) J.S. Mill
22) Many of the basic problems of economics emerge from:
a) Unlimited resources b) Incompetent govt. c) The use of limited resources to satisfy human wants d) Unlimited wants
23) The utility may be defined as: a) The power of a commodity to satisfy wants b) The desire for a commodity c) The usefulness of a commodity
d) The necessity of a commodity
24) The utility of a commodity is: a) Its expected social value b) Its relative scarcity c) The extent of its practical use d) The degree of its fashion
25) Marginal utility curve of a given consumer is also his: a) Indifference curve b) Demand curve c) Supply curve d) Total utility curve
26) The total utility is maximum when: a) MU is zero b) AU is the highest c) MU is the highest d) MU is equal to AU
27) The law of diminishing marginal utility states that:
a) As more of a commodity is consumed total satisfaction diminishes.b) The more you have of a particular commodity the less you want more of
it. c) As more units of a commodity are produced the price of the commodity will fall d) The consumption of further units of a commodity will
bring a steady thcrease in the amount of satisfaction obtained.
28) The law of diminishing returns or increasing cost will operate at an earlier level, in agriculture than in industry because:
a) More mechanization is applicable to agriculture b) Agriculture is an industry where land is used extensively c) Less mechanization is applicable
to agriculture. d) More labour is used in agriculture.
29) Opportunity costs are also known as: a) Spillover costs b) Alternative cost c) Social costs d) Money costs
30) An increase in the price‘of a commodity, other things remaining same, results in:
a) Increase in pricing b) Increases in quantity supplied c) Increase in demand d) Taxes
31) Supply remaining constant, if demand increases, price will a) Rise b) Remains constant c) Fluctuate d) Fall
32) Perfect competition is said to exist if: a) There are homogenous products b) Each firm in the industry accepts the market price because it has
to accept it. c) Price is fixed not by a firm d) All of the above
33) Consumer's surplus is highest in case of: a) Luxuries b) Necessities c) Comforts d) Conventional necessities.
34) A "Giffen Goods" is one for which, in response to a small change in price. a) A zero income effect is just outweighed by a positive substitution
effect. b) A negative income effect is just outweighed by a positive substitution effect. c) A zero income effect is matched by a zero substitution
effect. d) A negative income effect outweighed any'substitution effect.
35) Which is correct?
a) An "increase of demand" is not the same thing as an "extension of demand". b) An "increase of demand is the same thing as an "extension of
demand". c) An increase of demand is just equal to the extension of demand. d) All the above statements are wrong e) An increase of demand
invariably reduces the extension of demand.
36) Demand means: a) The desire and willingness of an individual for all goods and services for his standard of living. b) The desire, ability and
willingness of an individual to purchase goods and services at a given time and price c) Both A and B d) None of the above
37) The demand function for a commodity is defined as: a) Quantity demanded as a function of the goods, own price, the price of the substitute
and the buyer's income b) Price of Substitutes as a functions of the goods own prices c)Quantity demanded as a function of tne price of other
goods d) All the above
38) In the typical demand schedule, quantity demanded.
a) Varies directly with price.b) Varies proportionately with price c) Is independent of price d) Varies inversely with price
39) Law of demand states that when:
a) Income rises demand rises.b) Price rises demand rises.c) Price falls demand falls.d) Price falls demand rises
40) The law of demand indicates: a) The relationship between income and quantity demanded b) The relationship between price of a
commodity and price of ifs cubstitutes c) The relationship between price of two commodity.d) The relationship between the price of commodity
and the quantity demanded.
41) Which of the following conditions is required condition for the operation of law of demand? a) Price of subStitute change,,,b) Income and
Taste of consumer remains constant c) Production does not increase d) Taste of the consumer change
42) Demand curve shows:
a) Inverse relationship between quiantitydemailed and its cost of production.b) Inverse relationship between the rate of change of demand and
price.c) Inverse relationship between the rate of change in demand and cost of production at a given times. d) Direct relationship between the
demand and the price of a commodity at a given time.
43) When we say that a demand curve for a commodity slopes downwards to the right we mean: a) More of the commodity will be demanded
as income increase b) More of the commodity will be demanded as the price of the substitutes falls. c) More of the commodity will be
demanded as population rise.d) More of the commodity will be demanded as its own price falls.
44) A fall in the price of a commodity leads to:
a) A shift in demand b) A fall in demand c) A fall in the consumers real income d) A rise in the consumers real income
45) An exceptional demand curve is one that slopes: a) Upward to the lift b) Upward to the right c) DoWnward to the right d) Horizontal
46) Which one is not an exception to the Law of Demand? a) Ignoranceb) Inferior good c) Normal good d) Articles of Distinction
47) Demand for a commodity is elastic when has:
a) Only one use b) Many Use c) Uses, which cannot be postponed d) Uses very essential for the consumer
48) Which of the following pairs of commodities is an example of substitute:
a) Coffee and milk b) Mustard oil and coconut oil c) Diamond and cow d) Pen and ink
49) For most customers apples and oranges are substitute goods. Therefore, we would expect a rise in the price of apples to lead to: a) A
rightward shift in the supply curve of oranges b) A leftward shift in the supply curve of oranges. c) A fall in the price of oranges d) An upward
change in the demand curve of oranges.
50) A change in climate ,conditions resulting in hot weather, price remaining the same, would cause a consumer of cold drinks: a) To move to a
lower curve b) To move lower down the demand curve c) To move to a higher demand curve d) To move up the same demand curve
51) When an individual's income falls (while everything else remains the same) his demand for an inferior goods:
a) Increase b) Remaining unchanged c) We cannot say without additional information d) Decrease

a) Increase b) Remaining unchanged c) We cannot say without additional information d) Decrease
17 | P a g e
52) A fall in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity to: a) Remain
unchanged b) Increasec) Decrease d) Any of the above
53) The relationship between demand for a commodity and price, ceteris paribus, is:
%a) Negative b) Positivec) Non-negative d) Non-positive
54) Other things being equal a decrease in the quantity supplied to the market at given prices leads to:
a) A higher price and a contraction of demand b) A higher price and an expansion of demand. c) A higher price and an expansion of demand d) A
lower price and a contraction of demand.
55) Law of demand explains: a) Quantitative relationship between price and demand b) Qualitative relationship between price and demand c)
Relationship between demand and supply d) Rate of change in price and demand
56) We can say with certainty that when the demand for TVs increases in the long run, prices:
a) Will go down b) Will go up c) Change proportionately d) Cannot be predicted with the knowledge of elasticity of demand
57) In the normal demand schedule, quantity demanded:
a) Varies directly with price b) Is independent of price c) Varies inversely with price d) Varies proportionately with price
58) An example of derived demand is demand for: a) Pen and ink b) Wool and mutton c) Petrol and Car d) None of the above
59) By increase in demand we mean: a) Movement upwards on a demand curve b) Movement downwards on demand curve c) Shifting
upwards of a demand curve d) None of these
60) Law of demand operates because of
a) Price changes b) The principle of different income c) Changes in advertisement expenses d) None of the above
61) Multiple uses of a commodity will make the demand go up when:
a) Price increases b) Price remains the samec) Price falls down d) None of the above
62) Status symbol goods are: a) Veblen goods b) Exception to law of demand c) Goods of conspicuous consumption d) ALL OF THE ABOVE
63) Price - demand relationship in the case of Giffen goods is: a) Inverse b) Direct c) Absent d) None of the above
64) The downward sloping demand curve may be partly explained by the "income effect" which refers to:
a) People's tendency to save more as their real incomes fall in the short period. b) An increase or decrease in the amount of a good purchased
because of a price-induced change in the purchasing power of a fixed income. c) Changes in the relative importance of good purchased because
of changes in the con imunity's tastes resulting from adverting. d) Changes in the distribution of income in a community.
65) The demand curve for a commodity is generally drawn on the assumption that:
a) The commodity has no substitutes b) Tastes, income and aii other prices remain constant. c) The average household consist of two persons d)
Purchases of the commodity are made by a free market.
66) A fall in the price of a commodity leads to:
a) A shift in demand b) A fall in demand c) A rise in consumer's real income d) A fall in the consumer's real income.
67) In the case of Giffin good like Bajra a fall in its price tends to:
a) Make the demand remain constant b) Reduce the demand c)Increase the demand d)Change demand in an abnormal way.
68) Which of the following pairs of commodities is an example of substitutes:
a) Coffee and milk b) Diamond and cow c) Pen and ink d) Mustard oil and coconut oil.
69) For most consumers apples and oranges are substitute goods. Therefore, we would expect a rise in the price of apples to lead to: a) A
rightward shift in the demand curve of oranges b) A leftward shift in the supply curve of apples c) A downward change in the demand curve of
oranges d) A fall in the price of oranges
70) A change in climatic conditions resulting in hot weather, price remaining the same, would cause a consumer of cold drink: a) To move to a
higher demand curve b) To move up the same demand curve c) To move lower down the curve d) To move to a lower demand curve.
71) If two goods are complementary, this means that a rise in the price of one commodity will induce:
a) An upward shift in demand for the other commodity b) Arise in the price of the other commodity c) A downward shift in demand for other
commodity d) No shift in demand for the other commodity.
72) If more is demanded at the same price or same quantity at a higher price, this fact of demand is known as:
Extension of demand b) Increase of demand c) Contraction of demand d) Decrease of demand.
73) Other things being equal a decrease in demand can be caused by: a. rise in the price of the commodity
b) A rise in the income of the consumer c) A fall in the price of the commodity d) A fall in the income of the consumer
74) An increase in demand can result from: a) A decline in market price b) An increase in income c) A reduction in the price of substitutes d) An
increase in the price of complementary goods e) All the above
75) Which of the following circumstances would be likely to bring about a change in the demand schedule for a product?
a) A fall in the price of the product b) An increase in the number of potential consumers c) A new method of producing the product d) An
increase in the quantity produced. e) Both a &b
76) If the price of good A affects the demand for good B, then: a) A is a substitute for B b) B is complement of A c) Changes in the price of A will
cause movement along the demand schedule for A d) Changes in the price of B will not change the demand for A. e) Changes in the price of A
will shift or change the demand for B.
77) Cross demand is the change in the quantity demanded of a given commodity in response to the:
a) Change in the utility of another commodity b) Change in the price of another commodity c) Change in the nature of another commodity d)
Change in the size of another commodity.
78) The law of demand states that: a) Demand increases with increase in income b) When income and prices rise. the demand also rises c)
When income and prices rise. the demand also rises d) When price increases, demand increases
79) A consumer's equilibrium choice or position is one at which:
a) His savings are maximised b) His assets are maximised c) His satisfaction is maximum d) Price of goods is maximised
80) For most consumers, milk and tea are substitute goods. Therefore, we should expect a rise in price of milk to lead to:
a) A rightward shift in the supply curve of tea. b) A leftward shift in the supply curve of tea. c) A fall in the price of tea. d) An upward shift in the
demand curve for tea.
81) Other things being equal, a fall I contraction in demand can be caused by a: a) Rise in prices of the substitute
a) Rise in prices of the substitute b) Rise in prices of the substitute c) Rise in the income of the consumer d) Rise in the price of the commodity
82) The demand for a good is elastic if:
a) The demand for that good increases when price falls b) A decrease in price results in a decrease in total expenditure c) The quantity
demanded increases less than proportionately with the decrease in price level
83) A rightwards shifts in supply schedule indicates:
a) A decrease in Supply b) A decrease in quantity supply c)An increase in quantity supply d) An increase in supply.
84) A rightwards shift in supply curve indicates:
a) A decrease in supply b) An increase in quantity supplied c) An increase in supply d) None of the above
85) A supply curve will generally take an upwardsslopin9 form left to right because:
a) Market price is normally above total costs of production. b) Consumers' income tend to increase in the long period. c) Producers' costs
tend 'to increase as their output expands d) Supply of most goods is essentially a short-term phenomenon.
86) Other things being equal an increase in supply can cause by:
a) A rise in the price of the commodity b) An improvement in the techniques of production c) A rise in the income of the consumer d) An
increase in the income of the seller.
87) The shift of the supply curve for a commodity to the left may indicate, other things being equal, that:
a) Shares in the producing firms are in great demand on the Stock Exchange. b) Producers of the commodity wish to make and sell less at same
price. c) Prices raw materials used in the production of the commodity have fallen. d) Wages paid to the producers' employees have fallen.
88) Ceteris paribus, a decrease in quantity supplied of a commodity can be caused by:
a) A fall in its price b) Fall in income c) Rise in price d) Fall in raw material
89) The supply schedule for a commodity is usually assumed to be directly open to influence by all the following except:
a) The quantity demanded b) The prices of the factors of production c) The costs of production d) The prices of other goods
90) Which of the following could explain why the supply curve for a commodity slopes downwards?
a) Producers do not like increasing production. b) Producers have to lower price to induce consumers to buy more c) Costs fall as production
increases d) Diminishing marginal utility is in operation
91) "Free Trade Area" denotes: a) Pitlicy of Laissez faire b) A group of countries which have decided to impose no duties of any kind on imports
from other members of the group c) Free Exports & Imports d) All the above
92) Temporary control of inflation can be effected by:
a) Lowering Bank Rate b) Purchasing of securities by RBI c) Restraint on the growth of money supply d) None of these
93) The term "hyper-inflation" is used to denote: a) Creeping inflation b) Step by step inflation c) A "Runaway" or "galloping" inflationary
situation where the monetary unit becomes almost worthless d) None of these
. 94) In calculating a country's GNP at market prices one of the following is not included:
a) Depreciation b) Net factor income from abroad c) Net indirect taxes d) Transfer Payment
95) Indian Economy can be best described as:
a) Developed economy b) Undeveloped economy c) Developing economy d) Underdeveloped
96) The term "balance of trade" means: a) Difference between exports & imports b) Net Exports including merchandise c) The difference
between the cost of the imports and exports of a country. d) a and c
97) The open market operations refer to the sale and purchase by the RBI of:
a) Foreign exchange b) Gold c) Government securities d) All c' the above
98) At full employment level, which of the following would be most likely to lead to inflation?
a) A fall in taxation with no changes in gevemment expenditure b) An increase in productivity without any increase in wages c) A fall in
investment with no change in prosperity to consumer d) A rise in the prosperity to save with no change in investment
99) Deflation is: a) Deficit budget b) Reduction in taxation c) Contraction in volume of money or credit that results in a decline of price level d)
Increase in public expenditure
100) Bank rate means: a) Interest rate charged by moneylenders, b) Interest rate charged by the scheduled banks c) Rate of profit of the banking
institution d) The official rate of interest charged by the central bank of the country Micro-economic theory studies how an economy
determines.


ANSWER
1 D 2 A 3 A 4 C 5 D 6 D 7 A 8 B 9 B 10 C
11 B 12 B 13 A 14 C 15 C 16 C 17 C 18 B 19 C 20 B
21 C 22 C 23 A 24 B 25 B 26 A 27 B 28 B 29 B 30 B
31 A 32 D 33 B 34 B 35 A 36 B 37 A 38 D 39 D 40 D
41 B 42 B 43 D 44 D 45 B 46 C 47 B 48 B 49 D 50 C
51 D 52 A 53 A 54 D 55 C 56 D 57 C 58 D 59 C 60 A
61 C 62 D 63 B 64 B 65 B 66 C 67 B 68 D 69 A 70 A
71 C 72 B 73 D 74 B 75 E 76 E 77 B 78 C 79 C 80 D
81 D 82 C 83 D 84 C 85 C 86 D 87 B 88 A 89 A 90 C
91 B 92 C 93 C 94 D 95 C 96 D 97 D 98 A 99 C 100 D

Target JAIIB and Its strategy

Target JAIIB and Its strategy

If you have just joined the banking Industry, you must have applied for JAIIB or if not yet, you’ll be applying soon. And one thing everyone wants to know is how to pass JAIIB in first attempt. The obvious reason for clearing JAIIB i.e., Junior Associate of Indian Institute of Bankers is to get an extra increment. So sooner you pass the JAIIB exam, earlier you get an extra increment. If you have joined as Scale – I Officer (P.O.), your initial basic salary would be Rs.23700 and if you clear JAIIB, you get one increment and your basic salary increase by Rs.970. So, if you miss it first time, your increment gets delayed by 6 months. That means loss of Rs.5820+DA. So it becomes important to clear the JAIIB in first attempt itself.

JAIIB exam is held twice a year (June and December) and around 1.50 lacs candidates appear for the exam. Only 22-25% candidates are able to clear the exam each time. So, does it mean that JAIIB is difficult to crack? What should be the strategy to clear the JAIIB in first attempt itself? How one should prepare for JAIIB.

Passing marks for JAIIB are 50% aggregate and 45% in each subject. If aggregate marks are less than 50% or marks in a particular paper are less than 45% but you score 50% or more in any subject, you do not qualify the exam but you need not give that particular paper in next attempt, in which you score 50% or more. The best part of JAIIB exam is that result of each paper is shown to you immediately after you submit your online exam.

Simple steps to prepare for the JAIIB exam

Take off the burden from your mind, you are required to score only 50%, which is not very difficult. And the good thing is that there is no negative marking.

Here is a simple step by step guide which will help the bankers to be prepared for JAIIB.

If you come from finance or commerce background and have studied B.Com, MBA (Finance) etc., it is relatively easy to crack the JAIIB. Because you would have studied atleast 60% of the topics covered in JAIIB. If you are not from commerce or finance background, you need to make little extra efforts

Preparation strategy for JAIIB examination:

JAIIB exam needs some dedicated preparation to crack the exam, especially for the non commerce graduates. Many young bankers prepare for the exam only during the last week; Then they write one paper after getting low marks, they simply give up the attempt. Some take two days leave before the exam and prepare for it eventually they fail because of shortage of four or five marks. These strategies may work for few talent bankers but not for all. After our busy working hours, daily we have to spend some time for preparation of the exam. Since most of us are very new to the banking industry and its concepts, we need regular revisions to familiarise with the concepts.So all it needs a self disciplined and determined mind to prepare for the exam.

Allocation of Study time:

Daily we need to spend at least 1 1/2 to 2 hours a day for preparation of the JAIIB exam. Cramming before the exam night or before two days won’t help for understanding the information. It may help for few direct questions but it won’t be useful for complex questions. Also we wont have enough time to complete the sy1llabus and will lead to anxiety & stress. Sacrificing our sleep before the exam night will also make us counterproductive so it better to study every day.

Importance of Studying daily:

Studying daily and revising regularly helps to familiarise with concepts. It also helps us to understand the information. Having a study routine is not only helpful for exam but also improves our reading habit which every banker needs, as our industry is very dynamic. In our hectic banking hours finding time for continuously 2 hrs a day is very hard. But having small sessions of 30 to 40 minutes thrice in a day is easy to find. In the era of smart phones, we can study anything at anywhere so when you find a spare time please use it.

Study Material:

For preparation, I strictly recommend the three comprehensive courseware developed by IIBF, published by MacMillan for each paper. These books are not only helpful for the exam but also for our Banking career. If you really want to pursue your career as banker then these books are must and fundamental. They act like a reference manual for us. So my humble request to all, please don’t prepare only for clearing the exam; Kindly prepare with the motive of improving knowledge in the banking field. Because the knowledge gathered during our JAIIB exam will also aid us during our day-to-day banking life.

Apart from the MacMillan books, the books and work books prepared by JAIIB coaching centres such as N S Noor, Deewan Banking Academy etc,. are also available in the market. Mostly they are good but not comprehensive and may not have clear explanation for some topics. All the books are about same cost, so I recommend the Macmillan books

They are many free study material is available in the facebook groups and in websites also. If possible get that too for your reference but my best suggestion is to buy Macmillan books. The amount spent is more than worthy, the book will be useful for our banking career.

For Latest developments & Current affairs related to Banking Industry:

Apart from the above syllabus we need to refer the following for full preparation of the JAIIB exam.

1. Current developments in Master Circulars/ Master revisions issued by RBI

2. Websites of RBI, SEBI, BIS, IRDAI, FEDAI for reference and development in concerned subjects

3. IIBF Vision and Bank Quest published by IIBF for the members it is free and sent to email id.

4. Financial newspapers/publication can also be referred for current affairs.

5. New Government Schemes related to banking sector.

Nature of Questions:

Depending upon the complexity of the question, the marks of the question varies.

0.50 mark – Direct question which requires one word answers. Answer this questions with 100% accuracy. Most of these questions are from definitions, types or classification, abbreviation, simple explanations etc,. So at least read and go through all the topics in Macmillan Book twice.

Planning a study schedule:

Now we have allocated our time and purchased & collected the necessary materials for preparation of JAIIB exam. Now, “What is next??;” Having a strategy/plan/routine schedule for preparation of JAIIB Exam. Strategic planning is important for any activity because it provides a sense of direction and evaluation of progress in our efforts towards goal. A goal without a plan is just a wish, so please make a plan and try to stick to it.

We have already seen the JAIIB syllabus here. In order to pass the JAIIB exam all we need to do is to get 50% of marks in each paper within four consecutive attempts. So we don’t need to study all modules deeper and do research on each topic. If we cover 75% of the syllabus for each paper is enough to get more than 50%.

The strategy and study plan I discuss below are just an example for understanding, viewers and readers are instructed to prepare their own schedule based on their level of knowledge and skills in each subjects.

Overlapped Topics:

Some topics of a paper is also a covered in other papers and questions can be asked in any of the paper. For example AML/KYC is also common for Accounting & Finance and Legal & Regulatory aspects of Banking. Since questions can be asked in any of three exams from this topics, prepare for the paper which has most topics & sub-topics in that particular subject. Also revise the same when you need to prepare for the overlapped topic.

Study Plan: Principles & Practices of Banking:

In my view this is the easiest subject to pass when compared to other papers. Because in this paper, all the topic are conceptual and mostly related to our day-to-day banking activities. Hence most of the topics (not all) are already familiar to us.

Module A: Indian Financial System

Read and understand all the topics and sub topics without any omission.

If possible take notes in the form of snippets this will help for revision of the topic. Since we all new to banking terms repeated revisions are required for this module.

We can expect 20 to 25 marks in this unit.

Question from current development is asked from this unit.

Prepare to score all the marks from this module.

Module B: Functions of Banks

This unit is also important and all the topics should be thoroughly studied.

We can expect 20 to 25 marks from this unit.

This unit is also needed repeated revision so taking notes while studying is recommended.

Question from current development is asked from this unit.

This is also the our scoring section, prepare in a way to get all the marks from this module.

Module C: Banking Technology

If your are techie, take full 6 hrs and study thoroughly.

For techies, this unit helps to surpass the minimum marks comfortably.

Others prepare in a way to answer the direct question from this module.

From this unit we can expect 15 to 20 marks.

We can expect question from latest development in Banking related to IT.

Module D: Support Services & Marketing of Banking Services/Products

If you are BBA or MBA and studied marketing related concepts in your graduation then take full 6 hrs and thoroughly study the unit.

Others prepare to answer for direct questions.

We can expect 10 to 15 marks from this unit.

Study Plan: Accounting & Finance for Bankers:

Many bankers treat the Accounting & Finance paper as tough. The main reason is cramming of information won’t work here like other papers. Since here we have to study, understand and apply the concepts, we need to study regularly and practice. So a good study routine is must and here all the modules are important for exam purpose as well as for our knowledge. So there is no skipping of modules in this paper and give importance to all topics.

Module A: Business Mathematics and Finance

This is a must read and must know module for all bankers. So don’t even skip a small topic.

Since these module is mathematical in nature, write down all the formulas and go thorough it daily.

Practice yourself with formulas by assuming different values from the exercise and solved examples.

Don’t ever fail to take notes and snippets for formula’s explanation & applicability.

We can expect 25 or more marks in this unit.

Understanding of calculation and concepts is must so that we can answer confidently if the questions are twisted.

Module B: Principles of Book Keeping and Accountancy

This unit is also important and all the topics should be thoroughly studied because if we are in bank we should know the accountancy.

We can expect 20 to 25 marks from this unit.

Understand the concept is key for this paper. Don’t mug-up; if you cannot understand a topic just ask your B.Com friend. Or ask him to simply explain the basics of accountancy.

This unit is also needed repeated revision so taking notes while studying is highly recommended.

This is also the our scoring section, prepare in a way to get all the marks from this module.

Module C: Final Accounts

This unit is the most important and very useful for our day-to-day activities.

This unit is conceptual as well mathematical.

So take notes for formulas and revise it.

B.Com friend is the best mentor for this module.

From this unit we can expect 20 to 25 marks.

Module D: Banking Operations and Accounting Functions

This unit is comparatively less important but good preparation of this unit will help to score the pass mark.

This unit will have many overlapped topics

Prepare to answer for direct questions.

We can expect 15 to 20 marks from this unit.

Question from latest development can be asked in this module.

Study Plan: Legal & Regulatory Aspects of Banking:

Many people underestimate the legal paper and say this exam is very easy to clear. This is purely a law oriented paper, so many of the legal terms used in the topics are new to us. In order to familiarise and to understand those topics, we have to spend more time for this paper. Also good memorization skill is required to remember the numbers & data. All the modules are about equally important, hence don’t skip a topic.

Module A: Regulation and Compliance

This is a less important but easier module compared to other modules of the paper.

This module is full of theory related to Banking Regulation and its compliance.

Don’t ever fail to take notes and snippets for explanation & applicability.

We can expect 15 to 20 marks in this unit.

Question from latest development can be asked in this unit.

Module B: Legal aspects of Banking Operations

This module is a foundation and must study.

Understand the concepts and definitions for legal terms

Take notes, Take notes, Take notes and revise it until having a clear picture about the topic.

This is a scoring module so prepare well.

20-30 marks can be expected from this unit.

Module C: Banking related laws

A toughest module and it is a must study for all

Repeated revision is required to remember the numbers & data.

This unit will consume more time and make us feel bore. So study the topics in different sessions of 30 mins.

We can expect 25 to 30 marks from this unit, so it is a mark scoring unit.

Question can be asked from current developments or amendments so update accordingly.

Module D: Commercial Laws with reference to banking operations

This module is conceptual and also requires memorization too.

Some of the topics are common with Module D of Paper 2: Accounting & Finance.

This also a scoring module we can expect 20 – 25 marks from this unit.

On the actual test day

Choose the easy questions first as they will give you an estimate of the score. Then come back to the questions which were missed. Also, there is no negative marking, so attempt all questions. If you stuck in a question, leave that by marking and go ahead.

We hope this will help you out to pass the JAIIB in first attempt. If you have any queries/ suggestions, please write in comment box below.

Conclusion:

The time period mentioned above are for studying those topics at least one time and indicative for understanding. It will vary depending upon personal capacity, skill and knowledge in the subjects. So prepare your own study schedule and stick with it. Remember a determined and self disciplined mind is key to the success. So whatever the strategy you follow for JAIIB examination make sure you are sticking with your plan and be true to yourself.

https://iibfadda.blogspot.com/2018/08/target-jaiib-and-its-strategy.html

Ten Mistakes to avoid while preparing for CAIIB exam

Ten Mistakes to avoid while preparing for CAIIB exam

1.Not allocating sufficient amount of Study time daily:

This is a very common mistake done by many CAIIB aspirants, Cramming the information before the night of the exam or before two days may helped you in JAIIB examination (Although it is a wrong way of preparation). But here in CAIIB examination it won’t help you to even score thirty marks. A thorough understanding of concepts are needed for almost all topics so having a daily study routine is must for all aspirants.

I know it is very tough to find time during our busy banking hours. If you don’t have time for continuous 2 hrs then split the study hours into three or four sessions of 30 to 40 minutes a day. Since syllabus of CAIIB subjects cover many topics; In depth understanding of each topic is also needed to answer questions that test our knowledge, analytical skills and problem solving skills. So daily allocating sufficient amount of study time is necessary.

2.Not having clear focus on optional paper:

Selecting the correct optional paper and having clear focus on it, is must for successful completion of CAIIB exam. Although the Retail banking and Financial Banking are easy papers to clear, You need choose your optional paper based on your knowledge, interested areas in banking and career development. Don’t follow others recommendation for optional paper blindly. You have to analyse and decide your optional paper.

Remember CAIIB is not only for increments; it also provides many useful theoretical knowledge in different areas of banking.

3.Not learning the basic concepts:

Every topic of a subject has basic and fundamental concepts to be learnt by heart. Learning them thoroughly makes us to understand the more complex concepts. Complex concepts are nothing but complex combination of simple and basic concepts. We should have studied the fun1damental concepts in JAIIB (who knows it now ;P ;)). If not revise it then and there when it is required.

To learn the fundamental concepts of economy, business maths, accountancy you can refer more books from your commerce background friends. Remember learning complex concepts won’t be useful if you don’t understand the fundamental concepts behind them.

4.Not understanding and giving importance to syllabus:

In any examination if we want to pass that exam we should thoroughly understand the syllabus first. Because understanding the syllabus will give us a clear picture of what we are going to learn. We also get some insights about the subject. It also helps us to have an idea whether we are familiar with that topic or not. This will help you to assess the complexity of the subject and how much time you need to spend with a topic.

Give importance to syllabus helps to choose the right books for our preparation. Because there are materials that doesn’t cover the full syllabus (only the main areas of the syllabus) are available free in many study groups and websites. Aspirants who doesn’t aware of syllabus simply read those material and attend the exam.

5.Not having a preparation strategy and study plan

This is a common mistake many aspirants do, thinking there is no necessary for planning your study. They even think it is a waste of time. Whatever excuses we give, having a preparation strategy and study plan is must for any type of exam. It will help us to be goal oriented and stay focused of our target. If you do your targeted studies every day, it will make you motivated. As your progress through your schedule you will feel relaxed and your stress level for exam is reduced.

Creating a schedule will hardly take one to two hours of your time. While creating a schedule of your own you will also analyse the syllabus. There are many benefits can be pointed for having a good study plan. Though the initial effort may look too much; But the benefits are fruitful and long-lasting.

6.Not taking effective notes while studying itself

Many aspirants not even consider taking notes is a part of study. While studying if you take notes you will give importance to details. Giving importance to details will make you to ask more questions and to find short answers for it. This enhances your understanding about the topic. It also makes you to break down the contents of your learning in an easy way. Therefore your memory increases and whenever you see the notes you can recollect the content.

Thus taking notes helps you for better and easy revision. I know it is time consuming but once you are familiarised, it will be easy for you to take notes. Because your eyes can spot the important detail easily; Your mind organise them with an analogy for easy remembrance.

7.Not solving and practising mathematical problems:

Unlike JAIIB, here calculations, formulas and case studies are very important. You definitely need to solve all the problems in your study materials and work books you got. Don’t simply study a formula using one example of a problem related to it. Change the parameters and create problem of your own then solve it. By doing so, you will learn about importance of each parameter of the formula.

Practice, Practice, Practice!!!!!. There is no replacement for practising when solving problems, case studies and balance sheet analysis. When solving problems related to Balance sheet also use the same method as described above. There by we can improve our problem solving skills and analytical skills

8.Not revising the topics regularly:

Many aspirants ignore the importance of revising, stating there is no time for revising. If you are not making study plan you will not even find time to complete the syllabus. So no excuses, use your notes to revise the topic at regular intervals. For example every Sunday spare 20 to 30 minutes for revising, in addition to your study time.

 “Revise little but often” is the key strategy. Repeated revision make you feel bored and gives a feeling “Ahh!!! I know it. Don’t need to study”. But it makes you to master a topic; If five questions are asked from a single topic for knowledge testing; You can answer all, with 100% accuracy.

9.Not learning from the mistakes:

The biggest and costliest thing is learning from your mistake. If you have failed in an attempt, accept the failure and analyse where you lacked. When I say accept your failure that doesn’t mean to blame yourself. It means asking yourself questions related to find the cause of the failure. What is the main reason for non completion of the syllabus? In which topic i should improve my knowledge? etc,. How can I improve my reading ability further?

The answer to the questions should not be too general. It should be specific to spot your weakness. When you find your weakness please work on it. Nobody is perfect in the universe; So find your weakness and mistakes; Try to rectify it before your next attempt.

10.Not using the technology for proper and effective preparation of exam:

Because of the technology we can study anything from anywhere. So use your mobile, internet, websites, facebook communities,forums and blogs etc,.You can get any information from internet in just a single click or a single press of your finger. I am not saying you to depend on them but to use them as effectively as possible. So do your search whatever you feel useful subscribe to them.

Also many websites offering free mock test use them to test your knowledge. While giving mock test take it as serious as an exam. Then only you can know your time management under pressure and boosts your confidence

Current Affairs on August 30th 2018

Today's Headlines from www:

*Economic Times*

📝 TCS to open up AI platform Ignio to third-party players

📝 Bharti Airtel shareholders approve merger proposal with Tata Teleservices

📝 Nalco pays record dividend of Rs 1,102 crore for FY18

📝 ICICI Prudential sells 2.05% stake in Tata Chemicals

📝 Aditya Birla Fashion gets shareholders' nod to raise up to Rs 1,250 crore

📝 Domestic pharma players eye Bharat Serums acquisition

📝 ISRO keen to outsource PSLV, small satellite launch vehicle

📝 Cabinet approves additional funding of Rs 635 crore for IPPB

*Business Standard*

📝 MakeMyTrip and Yatra looking to optimise promotional costs to trim losses

📝 Jaguar Land Rover India registers 83% growth in 2017-18, says MD Rohit Suri

📝 Household financial savings climb to 7-year high, says RBI report

📝 Government hikes spending on postal payments bank to Rs 14.35 billion

📝 ICICI Bank tells Sebi it was unaware of conflict of interest

📝 Government mulls action against India heads of social media on fake news

📝 Finance Ministry to push S&P for ratings upgrade on Thursday

📝 RBI balance sheet expands by 9.5% in FY18 on rise in foreign investments

*Financial Express*

📝 Nomura pegs total stressed assets at Rs 16.30 lakh crore

📝 Rupee slips to record closing low of 70.59

📝 Sundaram Mutual plans to raise up to Rs 400 crore via NFO

📝 HCL opens IoT innovation labs in US, India

📝 US economy grew at a brisk 4.2 percent annual rate in Q2

📝 RBI surplus transfer to government rises 63.08% in FY18

📝 Current account deficit expected to be largely financed by FDI flows

📝 Irdai makes long-term insurance for new cars, two-wheelers mandatory

*Mint*

📝 Demonetisation comes to haunt govt as RBI says 99.3% notes back

📝 Aditya Birla, Varde to set up $1 billion JV to buy stressed assets

📝 RInfra sells Mumbai power utility to Adani

📝 IL&FS plans to divest assets, cut debt by up to ₹30,000 crore

📝 Indian Oil earmarks ₹22,000 crore capex for FY19

📝 Xander firm close to buying Omkar’s upcoming mall for ₹2,300 crore

📝 Unitech Q1 net loss widens to ₹73 crore

📝 Fuel retailers set to expand network after four-year gap.

SARFAESI ACT

SARFAESI ACT Objective:
1. To provide a structured platform to the Banking sector for managing its mounting NPA and keep pace with international
financial institutions
2. To enable banks and Fls to realise long-term assets, manage problems of _liquidity, asset -liability mismatches and improve
recovery by taking possession of securities, sell them and reduce non performing assets (NPAs) by adopting measures for
recovery or reconstruction."
Provisions of the Act
The remedy was suggested by Committees like the Narasirnham Committee II and Andhyarujina Committee, which considered the need for
changes in the legal system to address the issue of NPAs.
The SARFAESI Act was passed in 2002 to legalise securitisation and reconstruction of financial assets and enforcement of security interest. The
act envisaged the formation of asset reconstruction companies (ARCs) /Securitisation Companies (SCs).
The Act has made provisions for registration and regulation of securitisation companies or_reconstruction companies by the RBI, facilitate
securitisation of financial assets of banks, empower SCs/ARCs to raise funds by issuing security receipts to qualified institutional buyers
(QIBs), empowering banks and Fis to take possession of securities given for financial assistance and sell or lease the same or to take over
management in the event of default.
The Act provides alternative methods for recovery of NPAs, namely securitization and asset reconstruction.
Securitisation
 Securitisation means issue of security by raising of receipts or funds by SCs/ARCs.
 A securitisation company or reconstruction company may raise funds from the QIBs by forming schemes for acquiring
financial assets.
 The SCl/ ARC shall keep and maintain separate and distinct accounts in respect of each such scheme for every financial asset acquired,
out of investments made by a QIB and ensure that realisations of such financial asset are held and applied towards redemption of
investments and payment of returns assured on such investments under the relevant scheme.
Asset Reconstruction
 The SCs/ ARCs for the purpose of asset reconstruction should provide for anyone or more of the following measures:
 the proper management of the business of the borrower, by change in, or take over of, the management of the business of
the borrower.
 the sale or lease of a part or whole of the business of the borrower.
 rescheduling of payment of debts payable by the borrower enforcement of security interest in accordance with the
provisions of this Act.
 settlement of dues payable by the borrower
 taking possession of secured assets in accordance with the provisions of this Act.
Securitisation, and Reconstruction of Financial Assets and Enforcement of Security Interest Act
1. The Act was passed in 2002 with the objective of helping banks / Hs in recovery of their dues without intervention of the court. The Act is
applicable throughout India including Jammu & Kashmir.
2. The Act empowers the secured creditor to (i) take possession of the security (ii) sale or lease or assign the right over the same (iii) Manage
the same and/or appoint any person to manage the same (iv) Recover money receivable from 3rd parties. The competent authority to enforce
rights under SARFAESI is Chief Manager and above. However, Board of the bank can also delegate authority to an officer below the rank of
Chief Manager.
3. A bank can exercise rights under the Act provided following conditions are satisfied. (a) The asset to be acquired should be
charged to the bank. The recoverable dues should be more than Rs 1,00,000. The Act is not applicable if 80% of the due amount has been'paid.
A notice of 60 days is required to be given to the borrower and guarantor under section 13(2) of the Act calling upon them to discharge the liabilities
failing which bank can acquire the assets. If loan has been raised from more than one bank/FI, consent of 75% of lenders by value is
required before initiating action under the Act. The Act does not cover agricultural land mortgaged to the credit institution.
(However, other assets charged to bank can be acquired). The account should be NPA. The documents are within the limitation period
The security is not charged by pledge or lien.
4. The Act was challenged before Supreme Court in the case of Mardia Chemicals Limited versus Union of India and others (ICICI). While
upholding the constitutional validity of the Act, the Court struck down a clause that required borrower to deposit 75% of the claim amount
before making an appeal before DRT against action of the bank. Accordingly, the Act was revised in 2004 and the revised provisions are given in
the subsequent paragraphs.
5. If borrower has objection against the action of the bank, he can object to the bank and bank has to reply within one week. If borrower is still
not satisfied he can file application with the DRT within 45 days of the taking over of possession by the bank and is not required to deposit any
amount with DRT at this stage. If bank or borrower is not satisfied with the decision of DRT, either party can make appeal to DRAT within 30
days of receiving the copy of judgement. However, if the borrower prefers an appeal with DRAT, he is
required to deposit 50% of the bank's claim which can be reduced to 25% by the Chairperson. •
6. If the bank wants to sell the acquired assets, 30 days notice is to be given to the borrower/guarantor. The sale can be made by obtaining
quotations or inviting tenders from public or by holding public auction. In case of auctions or tenders, 30 days notice will be published in the
newspaper, reserve price will be fixed by the bank and sale at below reserve price will require consent of the borrower. Sale will be confirmed by
_bank on receipt of 25% of the amount immediately and balance in 15 days.
7. In the case of Transcore versus Union of India & Others, Supreme Court has decided that bank take action simultaneously under
SARFAESI and RDB Act (DRT Act)

CENTRAL ELECTRONIC REGISTRY UNDER THE SARFAESI ACT 2002

CENTRAL ELECTRONIC REGISTRY UNDER THE SARFAESI ACT 2002
Government of India, Ministry of Finance has notified the establishment of the Central Registry. The objective of setting up of Central Registry
is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry of
SRuritisation Asset Reconstruction and Security Interest of India (CERSAI), a Government Company licensed under section 25 of the Companies
Act 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the SARFAESI Act.
initially transactions relating to securitization and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to
secure any loan or advances granted by banks and financial institutions, as defined under the SARFAESI Act, are to be registered in the Central
Registry. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with
the property. Availability of such records would prevent frauds involving multiple lending against the security of same property as well as
fraudulent sale of property without disclosing the security interest over such property.

SECURITISATION

SECURITISATION
Securitisation - Concept
Securitization is a method through which illiquid assets are transformed into more liquid form, which are distributed to a broad
range of investors through the medium of capital market.
It is the process of converting illiquid financial assets into liquid marketable securities through an intermediary called special
purpose vehicle.
Through the securitisation process, the assets are removed from the balance sheet and the funds generated through
securitisation can be ploughed back for further asset expansion.
The Special Purpose Vehicle converts assets into securities called as 'Pass Through Certificates' and sell them to the buyers who may require that
particular asset class as a requirement or investment.
Since these certificates are backed by assets, they are also called asset backed securities (ABS).
If assets which have underlying mortgages are secuiritised, they are called as "Mortgage Based Securitisation".
Securitisation is the process of pooling of individual long term loans which are packaged and sold to various investors in the form of Pass Through
Certificates (marketable securities) through a Special Purpose Vehicle with the provision that the inflow of cash in the form of recoveries will
be distributed pro rata to the buyers.
The advantage of securitisation is that the receivables are removed from the books as they have been sold but the transaction does not create a
liability in the balance-sheet. Thus, securitisation helps in asset-liability management and also in capital adequacy.
Securitisation is a structured process and effected only for standard assets and rated by the rating agencies.
Securitisation Process
The lender first selects the assets they want to securitise.
The issuer (Special Purpose Vehicle) makes payment to the lender for the loans securitised.
The assets are converted into a pool of securities by the issuer for the purpose of issuing Pass Through Certificate (PTC).
The PTCs are sold to other investors who are willing to invest.
The lender continues to receive the recoveries from the original borrowers and the same are passed on to the SPV
The SPV in turn passes the recoveries to the investors.
Securitisation in Retail Banking:
In Retail banking, there is a concept called Collateral Debt Obligation (CDO). In CDO, asset classes/receivables like Car Loans, Credit Card
Receivables and Mortgage Loans like Home Loans, are grouped together and securitised. Multiple layers of PTCs with varying rates and coupons
are issued based on the quality of assets and risk perceptions underlying in the asset.

Debt Recovery Tribunals

DEBT RECOVERY TRIBUNALS
 DRTs are governed by provisions of the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, also popularly
called as the RDB Act.
 DRTs are located across the country. Some cities have more than one Debt Recovery Tribunal located therein. New Delhi and Mumbai
have three benches in Debt Recovery Tribunal. Chennai and Kolkata have two benches Debt Recovery Tribunal each. One Debt
Recovery Tribunal each has been constituted at Ahmedabad, Allahabad, Aurangabad, Bangalore, Chandigarh, Coimbatore, Cuttack,
Ernakulam, Guwahati, Hyderabad, Jabalpur, Jaipur, Lucknow, Nagpur, Patna, Pune, Ranchi and Vishakapatnam.
 Each Debt Recovery Tribunal is presided over by a Presiding Officer. The Presiding Officer is generally a judge of the rank of
Dist. & Sessions Judge.
 A Presiding Officer of a Debt Recovery Tribunal is assisted by a number of officers of other ranks, but none of them need necessarily
have a judicial back ground. Therefore, the Presiding Officer of a Debt Recovery Tribunal is the sole judicial authority to hear and pass
any judicial order.
 Each Debt Recovery Tribunal has two Recovery Officers. The work amongst the Recovery Officers is allocated by the
Presiding Officer. Though a Recovery Officer need not be a judicial Officer, but the orders passed by a Recovery Officer are
judicial in nature, and are appealable before the Presiding Officer of the Tribunal.
 DRTs are fully empowered to pass comprehensive orders like in Civil Courts. The Tribunal can hear cross suits, counter
claims and allow set offs. However, they cannot hear claims of damages or deficiency of services or breach of contract or
criminal negligence on the part of the lenders.
 DRTs can appoint Receivers, Commissioners, pass ex-parte orders, ad-interim orders, interim orders apart from powers to Review its own
decision and hear appeals against orders passed by the Recovery Officers of the Tribunal.
 Recording of evidence by Debt Recovery Tribunal is some what unique. All evidences are taken by way of an affidavit. Cross examination
is allowed only on request by the defense and that too if the Tribunal feels that such a cross examination is in the interest of justice.
Frivolous cross examination may be denied.
 DRTs are special types of courts for effecting recovery of dues of banks and financial institutions.
 DRTs are established under the Recovery of Debts due to banks and financial institutions Act 1993
 The Act is not applicable to J&K.
 DRT is headed by a Presiding Officer. He is assisted by a Recovery Officer and one Registrar.
 Type of Cases: Cases involving recoverable dues of banks and Fls of Rs 10 lees and above only are filed with DRTs. Such
cases can not be filed in the normal civil courts.
 Once the case is decided in favour of the bank or FI, the DRT issues a Recovery Certificate. Recovery Officer who has powers such
as attachment etc. helps in recovery of dues through execution of the decree passed by DRT.
 Appeal against the order of the Recovery Officer can be made to DRT within 30 days of passing the order.
 Any appeal against the judgement of DRT can be preferred with Debt Recovery Appellate Tribunal. The head of DRAT is called
Chairperson. The appeal is made within 45 days of the date of receipt of the order.
 If borrower wants to appeal, 75% of the judgment amount is required to be deposited which can be waived or reduced
by the Chairperson of the DRAT even to nil.
 Fee: for filing case with DRT- up to Rs 10 lac : Rs 12,000; For each additional Rs 1 lac or part thereof it is
 Rs 1000. Maximum amount of fees is Rs 1,50,000.
 For filing appeal with DRAT- Where the amount of debt is less than Rs 10 lakh- Rs 12,000;
 For debts due between Rs 10 lakh to less than Rs 30 lakh- Rs 20,000;
 For debts of Rs 30 lakh and more — Rs 30,000
 For being appointed as DRT, a person should qualify to be District Judge and for being appointed as DRAT, the person
should qualify to be a Judge of the High Court.

Credit Information Companies (N H Siddiqui Working Group)

Credit Information Companies (N H Siddiqui Working Group)
A Credit Information Company (CIC) is an independent organization licensed by RBI that enters into an agreement with banks, NBFCs
and financial institutions (called credit institutions), as its members and aggregates data and identity information for individual
consumers and business entities, from its members.
Legal provisions : The Credit Information Companies (Regulation) Act, 2005 was operationalised with effect from December 14,
2006. In terms of Section 15(1) of the Act, every credit institution has to become member of at least one credit information
company within a period of three months from commencement of the Act or any extended time allowed by RBI on application.
As all commercial banks fall under the definition of credit institutions (Section 2 of the Act), they are required to take
membership of at least one credit information company and provide credit data (positive as well as negative) to the credit
information company in the format prescribed by the credit information company.
Sharing of credit report with customers : Section 21 of the Credit Information Companies (Regulation) Act, 2005, provides that any
person, who applies for grant or sanction of credit facility, from any credit institution, may request to such institution to furnish him a
copy of the credit information obtained by such institution from the credit information company. It also provides that every credit
institution shall on receipt of request furnish to such person a copy of the credit information subject to payment of charges specified
by RBI.
Charges for report : As per Credit Information Companies Regulations, 2006, framed under the Act, RBI has prescribed a
maximum fee of Rs. 50/- (Rupees fifty only) for the purpose.
Source of data : Members of the credit information companies, submit data of their borrowers on a regular basis which is
aggregated by the bureau and presented to its members. A credit bureau only reproduces information that is submitted by its
members.
With CIC Act coming into force, RBI advised banks (Jul 01, 2013) that consent of the borrower to share information with CIC,
prescribed earlier, need not be insisted upon by banks.
Wilful defaulters Banks/Pis are required submit the list of suit-filed accounts of wilful defaulters of Rs.25 lakh and above as at end-
March, June, September and December every year to a credit information company which has obtained certificate of registration
from RBI in terms of Section 5 of the Credit Information Companies (Regulation) Act, 2005 and of which it is a member. Credit
Information Companies have also been advised by RBI to disseminate the information pertaining to suit filed accounts of Wilful
Defaulters on their respective websites.
List of Credit Information Companies (July 2015)
1. CIBIL, 2. Experian Credit Information Company of India Private Ltd. 3. Equifax Credit Information Services Private Ltd., 4. High
Mark Credit Information Services Private Limited.

Ethical behaviour

Ethical behaviour
1. Overview
Of late, serious concerns are voiced about the proprieties in business, because increasingly there are reports of improper behaviour. Some of the world’s biggest companies have been found to have cheated through false accounts and dishonest audit certification. The funds of banks have been misused by their managements to bolster the greed of some friends. Officials have used their authority to promote personal benefits. Increasingly, people who are trusted by the community to perform their tasks are seen to have betrayed the trust. Personal aggrandisement and greed prevails.
Consequently, there is increasing discussion about accountability and corporate governance, all of which together can be called “Ethics” in business. Acts like the ‘Right to Information Act’ and developments like ‘Public Interest Litigation’ have assumed considerable importance as instruments to achieve better accountability and governance.
Ethical behaviour automatically leads to good governance. When one does her duty conscientiously and sincerely, there is good governance. Unethical behaviour shows little concern for others and high concern for self. When one tries to serve self-interest through one’s official position, there is unethical behaviour. It is not wrong to look after one’s interests. But it is wrong to do so at the cost of the interests of others.
Insurance is a business of trust. Issues of propriety and ethics are extremely important in this business of insurance. Breach of trust amounts to cheating and is wrong. Things go wrong when wrong information is given to the prospects tempting them to buy insurance or the plan of insurance suggested does not cater to all the needs of the prospect.
Unethical behaviour happens when the benefits of self are considered more important than of the other. The code of ethics spelt out by the IRDA in the various regulations is directed towards ethical behaviour.
While it is important to know every clause in the code of conduct to ensure that there is no violation of the code, compliance would be automatic if the insurer and its representatives always kept the interests of the prospect in mind. Things go wrong when the officers of insurers become concerned with the targets of business, rather than the benefits to the prospect.

2. Characteristics
Some characteristics of ethical behaviour are:
a) Placing best interests of the client above one’s own direct or indirect benefits
b) Holding in strictest confidence and considering as privileged, all business and personal information pertaining to client’s affairs
c) Making full and adequate disclosure of all facts to enable clients make informed decisions
There could be a likelihood of ethics being compromised in the following situations:
a) Having to choose between two plans, one giving much less premium or commission than the other
b) Temptation to recommend discontinuance of an existing policy and taking out a new one
c) Becoming aware of circumstances that, if known to the insurer, could adversely affect the interests of the client or the beneficiaries of the claim

Communication

Communication may take place several forms
 Oral
 Written
 Non-verbal
 Using body language
It may be face to face, over the phone, or by mail or internet. It may be formal or informal. Whatever the content or form of the message or the media used, the essence of communication is given by what the recipient has understood as being communicated.
It is important for a business to choose how and when it will send messages to intended receivers.
Communication process

i. Source: As the source of the message, the agent must be clear about why she is communicating, and what she wants to communicate, and confident that the information being communicated is useful and accurate.
ii. Message is the information that one wants to communicate.
iii. Encoding is the process of transferring the information one wants to communicate into a form that can be sent and correctly decoded at the other end. Success in encoding depends on how well one is able to convey information and eliminate sources of confusion. For this it is necessary to know one’s audience. Failure to do so can result in delivering messages that are misunderstood.

iv. A Message is conveyed through a channel, which has to be selected for the purpose. The channel may be verbal including personal face-to-face meetings, telephone and videoconferencing; or it may be written including letters, emails, memos, and reports.
v. Decoding is the step wherein the information gets received, interpreted and understood in a certain way, at its destination. It can be seen that decoding [or how one receives a message] is as important as encoding [how one conveys it].
vi. Receiver: Finally there is the receiver, the individual or individuals [the audience] to whom the message is sent. Each member of this audience has his own ideas, beliefs and feelings and these would influence how the message has been received and acted upon. The sender obviously needs to consider these factors when deciding what message to send.
vii. Feedback: Even as the message is being sent and received, the receiver is likely to send feedback in the form of verbal and non-verbal messages to the sender. The latter needs to look for such feedback and carefully understand these reactions as it would help to determine how the message has been received and acted upon. If necessary the message could be changed or rephrased.

Non-verbal communication
Let us now look at some concepts that the agent needs to understand.
Important
Making a great first impression
We have already seen that attraction is the first pillar of any relationship. You can hardly expect to get business from a customer who does not like you. In fact many individuals need just a quick glance, of maybe a few seconds, to judge and evaluate you when you meet for the first time. Their opinion about you gets based on your appearance, your body language, your mannerisms, and how you are dressed and speak. Remember that first impressions last for long. Some useful tips for making a good first impression are:
i. Be on time always. Plan to arrive a few minutes early, allowing flexibility for all kinds of possible delays.
ii. Present yourself appropriately. Your prospect, whom you are meeting for the first time, does not know you and your appearance is usually the first clue he or she has to go on.
 Is your appearance helping to create the right first impression?
 Is the way you dress appropriate for the meeting or occasion?
 Is your grooming clean and tidy – with good haircut and shave, clean and tidy clothes, neat and tidy make up?
iii. A warm, confident and winning smile puts you and your audience immediately at ease with one another.
iv. Being open, confident and positive
 Does your body language project confidence and self-assurance?
 Do you stand tall, smile, make eye contact, greet with a firm handshake?
 Do you remain positive even in the face of some criticism or when the meeting is not going as well as expected?
v. Interest in the other person - The most important thing is about being genuinely interested in the other person.
 Do you take some time to find out about the customer as a person?
 Are you caring and attentive to what he or she says?
 Are you totally present and available to your customer or is your mobile phone engaging you during half your interview?

1. Body language
Body language refers to movements, gestures, facial expressions. The way we talk, walk, sit and stand, all says something about us, and what is happening inside us.
It is often said that people listen to only a small percentage of what is actually said. What we don’t say speaks a lot more and a lot louder. Obviously, one needs to be very careful about one’s body language.
a) Confidence
Here are a few tips about how to appear confident and self-assured, giving the impression of someone to be seriously listened to:
 Posture – standing tall with shoulders held back.
 Solid eye contact - with a "smiling" face
 Purposeful and deliberate gestures
b) Trust
Quite often, a sales person’s words fall on deaf ears because the audience does not trust her – her body language does not give the assurance that she is sincere about what she says. It is very important to be aware of some of the typical signs that may indicate when one is not honest and believable and be on guard against them as listed below:
 Eyes maintaining little or no eye contact, or rapid eye movements
 Hand or fingers are in front of one’s mouth when speaking
 One’s body is physically turned away from the other
 One’s breathing rate increases
 Complexion changes colour; red in face or neck area
 Perspiration increases
 Voice changes such as change in pitch, stammering, throat clearing
 Speech – slow and clear with tone of voice kept moderate to low
Some body movements that indicate defensiveness and non-receptivity include:
 Hand/arm gestures are small and close to one ‘s body
 Facial expressions are minimal
 Body is physically turned away from you
 Arms are crossed in front of body
 Eyes maintain little contact, or are downcast
If your customer expresses any of these, perhaps it is time you checked yourself and paid more attention to what is going on in the customer’s mind.

2. Listening skills
The third set of communication skills that one needs to be aware about and cultivate are listening skills. These follow from a well-known principle of personal effectiveness – ‘first to understand before being understood’.
How well you listen has a major impact on your job effectiveness, and on the quality of your relationships with others. Let us look at some listening tips.
a) Active listening:
It is where we consciously try to hear not only the words but also, more importantly, try to understand the complete message being sent by another.
Let us look at some of the elements of active listening. They are:-
i. Paying attention
We need to give the speaker our undivided attention, and acknowledge the message. Note, non-verbal communication also "speaks" loudly. Some aspects of paying attention are as follows:
 Look at the speaker directly
 Put aside distracting thoughts
 Don't mentally prepare a rebuttal
 Avoid all external distractions [for instance, keep your mobile on silent mode]
 "Listen" to the speaker's body language
ii. Demonstrating that you are listening:
Use of body language plays an important role here. For instance one may:
 Give an occasional nod and smile
 Adopt a posture that is open and draws out the other to speak freely
 Have small verbal comments like yes and uh huh.
iii. Provide feedback:
A lot of what we hear may get distorted by our personal filters, like the assumptions, judgments, and beliefs we carry. As a listener, we need to be aware of these filters and try to understand what really is being said.
 This may require you to reflect on the message and ask questions to clarify what was said
 Another important way to provide feedback is to paraphrase the speaker’s words

Yet a third way is to periodically stop the speaker and make a summary of what the speaker has said and repeat it back to him or her. Example
Asking for clarity - From what I have heard, am I right in assuming, that you have issues about the benefits of some of our health plans, could you be more specific?
Paraphrasing the speaker’s exact words - So you are saying that ‘our health plans are not providing benefits that are attractive enough’ – have I understood you correctly?
iv. Not being judgemental:
One of the biggest hurdles to active listening is our tendency to be judgmental and biased about the speaker. The result is that the listener may hear what the speaker says but listens according to her own biased interpretation of what the speaker might be saying.
Such judgmental approach can result in the listener being unwilling to allow the speaker to continue speaking, considering it a waste of time. It can also result in interrupting the speaker and rebutting the speaker with counter arguments, even before he or she has been able to convey the message in full.
This will only frustrate the speaker and limits full understanding of the message. Active listening calls for:
 Allowing the speaker to finish each point before asking questions
 Not interrupting the speaker with any counter arguments
v. Responding appropriately:
Active listening implies much more than just hearing what a speaker says. The communication can be completed only when the listener responds in some way, through word or action. Certain rules need to be followed for ensuring that the speaker is not put down but treated with respect and deference. These include:
 Being candid, open, and honest in your response
 Asserting one’s opinions respectfully
 Treating another person in a way you would like to be treated yourself
vi. Empathetic listening:
Being empathetic literally means putting yourself in the other person’s shoes and feeling his or her experience as he or she would feel it.

Listening with empathy is an important aspect of all great customer service. It becomes especially critical when the other person is a customer with a grievance and in a lot of pain.
Empathy implies hearing and listening patiently, and with full attention, to what the other person has to say, even when you do not agree with it. It is important to show the speaker acceptance, not necessarily agreement. One can do so by simply nodding or injecting phrases such as "I understand" or "I see."

CERT-In (the Indian Computer Emergency Response Team)

CERT-In (the Indian Computer Emergency Response Team)

CERT-In (the Indian Computer Emergency Response Team) is a government-mandated information technology (IT) security organization. The purpose of CERT-In is to respond to computer security incidents, report on vulnerabilities and promote effective IT security practices throughout the country.
CERT-In was created by the Indian Department of Information Technology in 2004 and operates under the auspices of that department. According to the provisions of the Information Technology Amendment Act 2008, CERT-In is responsible for overseeing administration of the Act.
CERT organizations throughout the world are independent entities, although there may be coordinated activites among groups. The first CERT group was formed in the United States at Carnegie Mellon University.
CERT-In is operational since January 2004. The constituency of CERT-In is the Indian Cyber Community. CERTIn
is the national nodal agency for responding to computer security incidents as and when they occur.
In the recent Information Technology Amendment Act 2008,CERT-In has been designated to serve as the national
agency to perform the following functions in the area of cyber security:
Collection,analysis and dissemination of information on cyber incidents.
Forecast and alerts of cyber security incidents
Emergency measures for handling cyber security incidents
Coordination of cyber incident response activities.
Issue guidelines,advisories,vulnerability notes and whitepapers relating to information security
practices,procedures, prevention,response and reporting of cyber incidents.
Such other functions relating to cyber security as may be prescribed

PMEGP MCQs MSME

1. The Prime Minister's Employment Generation Programme (PMEGP):
(a) has been designed to generate employment opportunities in Rural & Urban areas.
(b) relates to the setting up of new self-employment ventures for industries, services and business.
(c) covers whole of the country including J & K
(d) has replaced PMRY & KVIC-REGP scheme (e) all above
2. To be eligible for loan under PMEGP, minimum qualification required is class pass in case project
cost is above Rs 10 lakh in the manufacturing sector and above Rs. 5 lakh in the business or service sector –
(a) 8 th (b) 9th (c)5th (d)7th (e) none of the above
3. To be eligible under PMEGP, the applicant's age should be :
(a) not-more than 40 years (b) not less than 18 years (c) between 25 to 40 years (d) abovel 8 years
4. Under PMEGP, ________ % of the margin money (subsidy) should go to projects in rural areas:
(a) 25% (b) 40% (c) 30% (d) 60% (e) 50%
5. To be eligible for assistance under PMEGP, family income of the applicant should not exceed:
(a) Rs. 24,000 p.a. (b) Rs. 30,000 p.a. (c) Rs.40,000 p.a. (d) Rs. 60,000 p.a. (e) No limit
6. Under PMEGP, the repayment period can be after moratorium period as per bank discretion.
(a) 3 to 5 year (b) 3 to 7 year (c) 5 to 7 year (d) 5 to 9 year (e) None of these
7. Rate of subsidy available under PMEGP is :
(a) General-category borrowers: 15% of project cost in urban areas and 25%o. in rural areas;
(b) Special category borrowers: 25% of project cost in urban areas and 35% in rural areas.
(c) 15% in rural areas and 25% in urban areas for general category borrowers
(d) Both (a) & (b) above (e) None of these
8. Under PMEGP, the borrower is required to contribute% of project cost as margin money :
(a) 5% for special category and 10% for general category
(b) 10% for special category and 5% for general category
(c) 5% for special category as well as general category
(d) 10% for special category as well as general category (e) none of the above
9. Maximum Project cost in the case of single borrower for business & service category under PMEGP is:
(a) Rs. 10 lakhs (b) Rs. 25 lakh (c) Rs.5 lakhs (d)Rs. 2 lakh (e) None of these
10. Under PMEGP scheme, rural area means place notified as rural area in revenue records and with
population:
(a) up to 10,000 (b)less than 10,000 (c) up to 50,000 (d)up to 20,000 (e) None of these
11. Banks will not insist on collateral security from beneficiaries under PMEGP for loans up to:
(a) Rs. 10 latch (b) Rs. 5 lakh (c) Rs. 1 lakh (d) Rs. 50,000 (e) Rs. 3 lakh
12. Banks should lend at least ___ % of advances under PMEGP to SC/ST
(a) 10% (b) 22.5% (c) 35% (d) 50% (e) None of these
13. Which of the following is not true about PMEGP scheme:
(a) There is no condition for education for project up to Rs 10 lac for industry and Rs 5 lac for service.
(b) There is no limit on Family income. (c) It is not applicable in J&K.
(d) it covers both the rural as well as urban centres
(e) The maximum cost of project for industry is Rs.25 lac and for service & business Rs 10 lakh.
14. Maximum Project cost in the case of single borrower for business & service category under PMEGP is:
(a) Rs. 10 lakhs (b) Rs. 25 lakh (c) Rs.5 lakhs (d)Rs. 2 lakh (e) None of these
15. For which of the following category of beneficiaries, targets have been set up under PMEGP?
(a) SC/ST (b) Women (c) physically handicapped (d) all of these (e) None of these
16. PMEGP is applicable in which of the following areas?
(a) Rural only (b) urban areas only (c) Both Rural and urban areas (d) None of these
17. Which of the following is not correct regarding PMEGP scheme?
(a) Both existing and new projects are eligible (b) Only one person from one family is eligible

(c) Family includes beneficiary and spouse (d) No concession in interest rate(e) None of these
18. Village Industry under PMEGP, means a unit located in the rural area which produces any goods or
renders any service with or without the use of power and in which the fixed capital investment per head
of a full time artisan or worker does not exceed :
(a) Rs. 1 lakh in plain areas (b) Rs.1.50 lakh in hilly areas (c) Rs 2 lac in North East
(d) Both (a) & (b) (e) All of these
9. Identification of beneficiaries under PMEGP will be done at the district level by a Task Force consisting
of representatives from:
(a) KVIC/State KVIB (b) State DICs (c) Banks (d) Both (a) & (b)(e) All of these.
!0. For the purpose of PMEGP scheme, which of the following is not included in special category?
(a) SC / ST, OBC (b) Minorities, Women (c) Ex servicemen & Physically handicapped
(d) North East, Hill and Border areas . (e) None of these
1. Which of the following is not correct regarding margin money (subsidy) under PMEGP?
(a) Subsidy should be kept in the Term Deposit Receipt of three years
(b)No interest will be paid on the TDR & no interest to be charged on loan on corresponding amount of TDR
(c) Subsidy will be credited to the Borrowers loan account after three years from the date of
first disbursement to the borrower.
(d) If loan goes bad before 3 year period, due to reasons, beyond the control of the beneficiary, subsidy can
be credited to loan account before 3 years (e) None of these
22. Under which situations, proportionate or entire subsidy for working capital component has to be returned?
(a) When utilization of limit does not touch 100% limit of CC on any day within three years of lock in period.
(b) When utilization of the sanctioned limit is less than 75% (c) either (a) or (b) (d) None of these
23. Which of the following is correct regarding training of beneficiaries under PMEGP?
(a) First instalment of loan will be released only after completion of EDP training of at least 2 weeks
(b) If beneficiary has undergone training from the recognized institution, no further EDP training is required.
(c) Both (a) & (b) (d) None of these
24. Which of the following is not correct regarding project cost in case of PMEGP scheme?
(a) Project cost will include Capital Expenditure and one cycle of Working Capital.
(b) Projects without Capital Expenditure are not eligible for financing under the Scheme.
(c) Projects. costing more than Rs.5•Iakh, not requiring working capital, need clearance from RO.
(d) Cost of the land should not be included in the Project cost. (e) None of these
25. Under which situations, proportionate or entire subsidy for working capital component has to be returned?
(a) When utilization of limit does not touch 100% limit of CC on any day within three years of lock in period.
(b) When average utilization of the sanctioned limit is less than 75%
(c) When average utilization of the sanctioned limit is lesS than 80%
(d) either (a) or (b) (e) Either (a) or (c)
26. Which of the following is correct regarding training of beneficiaries under PMEGP?
(a) First instalment of loan will be released only after completion of EDP training of at least 2 weeks
(b) If beneficiary has undergone training from the recognized institution, no further EDP training is required.
(c) Both (a) & (b) (d) None of these
27. Which of the following is not correct regarding project cost in case of PMEGP scheme?
(a) Project cost will include Capital Expenditure and one cycle of Working Capital.
(b) Projects without Capital Expenditure are not eligible for financing under the Scheme.
(c) Projects costing more than Rs.5 lakh, not requiring working capital, need clearance from RO.
(d) Cost of the land should not be included in the Project cost. (e) None of these
28. Which of the following is not eligible for loans under the scheme?
(a) Self Help Groups (b) Institutions registered under Societies Registration Act, 1860
(c) Production Co-operative Societies (d) Charitable Trusts (e) None of these

ANSWER
Q A Q A Q A Q A Q A
1 E 2 A 3 D 4 E 5 E
6 B 7 D 8 A 9 A 10 D
11 A 12 E 13 C 14 A 15 E
16 C 17 A 18 C 19 D 20 E
21 D 22 E 23 E 24 E 25 D
26 B 27 E 28 E

New Updated PDF for MSME

New Updated PDF  for MSME

Download link here:

https://drive.google.com/file/d/1vYD1oGrlYSfhh4RfG-bX_XQ55u1U6Wg2/view?usp=sharing


Read corresponding  IIBF book 1st Macmillan / Taxmann.



These all materials are extra information to get knowledge.



All the best

New Updated PDF for KYC AML

New Updated PDF  for KYC AML

Download link here:

https://drive.google.com/file/d/15kAUTcbvNZfUoMz2yPcpyjol89UqbIdo/view?usp=sharing


Read corresponding  IIBF book 1st Macmillan / Taxmann.



These all materials are extra information to get knowledge.



All the best