RBI Grade B 2018 Phase 2 – Economics & Social Issues 111

Passage About scholarship scheme for NRI and 11. What is true about of the scheme?
Overseas Indians (ECR means Emigration Ans: The option containing Capacity Building,
Check Required Countries and include Gulf and Trading and Skill Development, Credit training
Middle East countries): etc (as the subsidy amount of 7500 given is
1. The Scheme doesn't cover which of the incorrect. 7500 is the investment limit and not
discipline. subsidy limit. Moreover other option gave
Ans: Medicine ceiling of Rs 10000 for minor Irrigation project
is also INCORRECT as there is no such ceiling
2. What is the name of the Scholarship Portal prescribed under the scheme.)
under the scheme?
Ans: spdcindia.gov.in 12. Features about the scheme? Which one is
incorrect?
3. What is the name of the Scheme? Ans: There is no Involvement of PRI and it aims
Ans: Scholarship Program for Diaspora at establishing MACRO enterprise
Children (as PRIs are part of the scheme and the scheme
aims at building MICRO enterprises not
4. Features of scheme: All options correct except MACRO)
for the one stating food charges covered
Passage about the scheme: SCHEME OF
5. Total number of Scholarship and that reserved GRANT IN AID TO VOLUNTARY AND OTHER
for ECR countries. ORGANIZATIONS WORKING FOR SC.

6. There was a Passage about JSSK. The question

13. The question was- Name the scheme?
was to Identify name of the scheme.
Ans: As above
Ans: Janani Shishu Suraksha Karyakaram
14. The above scheme comes under Which
7. Under JSSK, the provision of Hospitalization is
ministry?
for how many days for sick new born children?
Ans: Ministry of Social Justice and
Ans: 30 Days
Empowerment

8. For how many days is a Diet provided for

15. What is the Eligibility Criteria for an
Normal and C-section Delivery?
organisation to come under this scheme?
Ans: 3 and 7 Days respectively
Options:
A. Registered under Society Act 1960
9. JSSK was launched from which district?
B. Indian Red Cross society and its Branches
Ans: Mewat District in Haryana
C. Section 25 of Companies Act
Ans: All of the above
10. Passage based on Swarjayanti Gram Swarojgar
Yojana (Launched in April 1999): Name the
(Refer the below Excerpt from Ministry of SJE)
scheme?
In order to be eligible for assistance under this
Ans: Swarnajayanti Gram Swarojgar Yojana

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scheme, an organization should have the Ans: a and c

following characteristics:
i. It should be (Overseas scholarship is not admissible claim.
Refer the below excerpt from official scheme
a) Registered under the Societies Registration Doc from MSJE)
Act, 1860 (XXI of 1860) or any relevant Act of ADMISSIBLE ITEMS 4.1. Assistance under the
the State / Union Territory; or Scheme is admissible for the following items:
b) A public trust registered under the law for the a. Rent for the building in which the project is
time being in force; or being run;
c) A charitable company licensed under Section b. Purchase of furniture;
25 of the Companies Act, 1958; or c. Purchase of equipment and machinery;
d) Indian Red Cross Society or its branches; and d. Honorarium to the staff;
or e. Stipend to the students and trainees; Tuition
e) Any other public body or institution having a fee chargeable by the institutions approved
legal status of its own: under
f) The voluntary organization should have been 2.2 (i) (b) above
registered for, at least two years, at the time f. for students enrolling in courses approved by
of applying for grant under the scheme. This the Ministry under 3.1 (ii)
can, however, be waived by the Secretary, g. Material for use in learning the skills and
Ministry of Social Justice and Empowerment, creating awareness;
for reasons to be recorded in writing, in h. Stationery;
exceptional cases. i. Contingencies which include TA/DA and
g) Number of Scheduled Caste beneficiaries is other such expenditure, and
not less than 60% in cases of voluntary j. Any other item as may be approved by the
organizations. Secretary, Ministry of Social Justice and
h) Any other organization or training institution Empowerment.
of repute, which may be approved by the 4.2 The above is not exhaustive but merely an
Secretary, Ministry of Social Justice and illustrative list of items for which assistance
Empowerment. may be provided. It will be open to the
Government of India to provide assistance for
ii. It is not run for profit to any individual or a any other purpose connected with the
body of individuals except in case of training activities referred to in para 3.1 above.
institutions of repute specifically included
under 17. There was one question about the objectives
of the above scheme?
16. Which of the following is covered under the
scheme? Refer the below excerpt from PIB that was
a) Building rent reproduced in the exam
b) Scholarship for foreign studies abroad for National Income
Orphan children ONLY The GNI at current prices is estimated at
c) Stipend given to students `165.87 lakh crore during 2017-18, as

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compared to `150.77 lakh crore during 2016- 23. The Headline Inflation rate referred in the
17, showing a rise of 10 percent. Per Capita Net passage: CPI Index

National Income 24. Which of the following can be the reason for
The per capita income at current prices during the caution (Options were 1991 Reforms /
2017-18 is estimated to have attained a level High Manufacturing Cost/Govt Ownership of
of `112835 as compared to the estimates for PSBs/ Labour market something)
the year 2016-17 of `103870 showing a rise of
8.6 percent. Doubt about the answer: It can be either of
1991(which integrated Indian economy to
Gross National Income global economy making it more susceptible to
The Gross National Income (GNI) at 2011-12 Global headwinds/Macro issues that IMF
prices is now estimated at `128.64 lakh crore highlighted in the report like surge in oil prices,
during 2017-18, as against the previous year’s global liquidity tightening conditions, Geo
estimate of `120.52 lakh crore. In terms of political risks and protectionism ). The answer
growth rates, the Gross National Income is can also be Public Ownership of the banks as
estimated to have risen by 6.7 percent during IMF highlighted the twin balance sheet and
2017-18, in comparison to the growth rate of low credit off take issue in the report. IMF also
7.1 percent in 2016-17. mentioned about labour market reforms in the
report!!!)
18. There was a Passage about Gross National
Income (GNI) with Blanks. (Excerpt from the Report)
The question was about who releases the However persistently-high household inflation
estimates? expectations and large general government
Ans: MOSPI (As CSO under MOSPI) fiscal deficits and debt remain key
macroeconomic challenges.
19. Which will fill the gap (Referring to the 165 “Systemic macro-financial risks persist, as the
lakh crore which is GNI)? weak credit cycle could impair growth and the
Ans: GNI sovereign bank nexus has created
vulnerabilities,” the report said.
20. How is per capita income computed? Economic risks are tilted to the downside, the
Ans: GNI/ Population report said, adding that on the external side,
risks include a further increase in international
21. Passage About IMF and RBI. Which rate is oil prices, tighter global financial conditions, a
being referred? retreat from cross border integration including
Ans: Repo spill over risks from a global trade conflict, and
rising regional geopolitical tensions.
22. The rate was increased to 6.5% (Many saying “Domestic risks pertain to tax revenue
6.25%. That’s incorrect. The IMF report shortfalls related to continued GST
mentioned in the para was released in August) implementation issues and delays in
addressing the twin balance sheet problems

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RBI Grade B 2018 Phase 2 – Economics & Social Issues 114

and other structural reforms,” it said. IMF Ans: All Govt Expenditure - All Govt receipts
Executive Board Directors welcomed the except borrowings
strong
economic growth and commended the Indian 30. There was a Passage About Ease of Doing.
authorities for the important and wide-ranging Question- Which state has been ranked last as
reforms. per BRAP?
While noting the broadly positive outlook, the Ans: Meghalaya
directors observed that risks are tilted to the
downside from external factors, such as higher 31. What is the full form of BRAP?
global oil prices and tighter global financial Ans: Business Reform Action plan
conditions, as well as domestic financial
vulnerabilities. 32. What is the Number of Points in BRAP?
Against this background, they underscored the Ans: 372
need for continued prudent macroeconomic
policies and renewed emphasis on macro- 33. DIPP has Collaboration with which institution?
financial and structural reforms. Ans: World Bank

25. Name the organisation releasing the report? 34. Feedback Taken from which among the
Ans: IMF following?
Ans: All of the given options
26. One passage about FRBM, Fiscal Deficit based a) Existing businesses
on Budget Speech b) New Businesses
Name of the committee head: c) Architects
Ans: N K Singh d) Lawyers

27. What is India’s Debt to GDP ratio and what of (Excerpt from EODB. DIPP. Gov. In website)
the following are Operational parameters Feedback respondents
used to calculate it? DIPP will solicit feedback from the following
Ans: None of the above groups of respondents: New businesses:
(While 40% was in one of the options, it had This would comprise large, medium and small
both Fiscal Deficit and Revenue Deficit in the scale businesses who had applied for pre-
second blank. While Govt has adopted ONLY establishment and pre-operations licenses in
FISCAL DEFICIT as the operational parameter). the past one year.

28. FRBM paves the way for? Existing businesses:

i. Removal of Ad-hoc Bills This would comprise large, medium and small
ii. Ways and Means Advance businesses operational in the last 5 years.
iii. Short Term? • Architects: Architects who are registered with
the municipal corporations of the largest city/
29. Fiscal Deficit refers to? have applied for a building plan approval or
occupancy certificate in the past one year.

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• Electrical contractors: Electrical contractors 43. Consumer Goods are also referred as?
who have applied for electrical connections for Ans: Final Goods
commercial and industrial uses from
distribution companies in the past one year. 44. HDI is released in Annual Report of?
States/ UTs would need to share the contact Ans: UNDP
details of such contractors.
• Lawyers: Lawyers sourced from the Indian Bar 45. Budget Speech of FM stated that Agricultural
Council of States/ UTs and Bar Council of India. Exports of India are ______ against potential
Since, this exercise is being conducted for the of 100 Billion?
first time, the questions are being limited to Ans: 30 Billion
those with binary (Yes/No) responses only
46. The First P in PPP?
Ans: Purchasing Power Parity
35. Which among the following is one of the
Objectives of SEZ Act 2006?
47. Impact of Globalization on Family, Work and
Ans: All of given options
Culture etc can termed as?
Ans: SOCIAL GLOBALIZATION
ONE MARKERS:
36. Proportion of people below poverty line 48. TRIPS monitored by which organization?
referred as? Ans: WTO
Ans: POVERTY GAP
49. First state in India to have conducted
37. SDG Targets are to be achieved by the year? comprehensive survey to ascertain the extent
Ans: 2030 of Multidimensional Poverty in the state?
Ans: AP
38. First Multilateral Organization having its
secretariat in India? 50. Macro-Economic theory doesn’t involve which
Ans: ISA of the following?
Ans: Analysis of specific Company
39. Poverty due to sudden Health Issue or
Calamity and temporary in Nature? 51. GDP is measured from the Perspective of?
Ans: Situational Poverty Ans: Consumer Perspective (GVA is Producers
Perspective)
40. Budget Allocation for Operation Green?
Ans: 500 Crores 52. Which among the following is National
income?
41. Cumulative Deduction in budget to Salaried Ans: Final of Goods produced + Receivable
Class? from abroad
Ans: 40000
53. Which of the following is true about Fiscal
42. Allocation for Infra in Budget? Policy?
Ans: 5.97 Lac Crore (Either in ESI or FM)

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Ans: None of the given options (All narrated a) Market Power Theory
Monetary Policy aspects!) b) Mark up theory
c) Bottle Neck theory
54. Question about Rural Development scheme? d) Monetary Theory
Ans: Rashtriya Gram Swaraj Abhiyan e) None of the given options

55. Which among the following is Imposed for Mark-up theory of inflation was proposed by
generating revenue and protecting domestic Prof Gardner Ackley. According to him,
industries? inflation cannot occur alone by demand and
Ans: Tariff cost factors, but it is the cumulative effect of
demand-pull and cost-push activities.
56. Trade measures aimed at protecting domestic
Demand-pull inflation refers to the inflation
sector refers to?
that occurs due to excess of aggregate
Ans: Protectionism
demand, which further results in the increases
in price level. The increase in prices levels
57. Which of the following is a Study of impact on
stimulates production, but increases demand
Price of Good A due to change in price of Good
for factors of production. Consequently, the
B?
cost and price both increases.
Ans: Cross Elasticity
In some cases, wages also increase without
58. Institution established in 1945 for securing rise in the excess demand of products. This
results in fall in supply at increased level of
stability, monetary co-operation etc?
Ans: IMF prices as to compensate the increase in wages
with the prices of products. The shortage of
59. GDP calculation doesn’t include? products in the market would result in the
Options: further increase of prices.
a) Govt outlay Therefore, Prof. Gardner has provided a model
b) Pvt Inventory of mark-up inflation in which both the factors,
c) Investment demand cost, are determined. Increase in
d) Exports demand results in the increase of prices of
e) None products as the customers spend more on
products
60. Population that maximizes the country's
Growth and Development? 63. The revised Fiscal Deficit Target is 3.3% against
Ans: Optimal Population the earlier target of 3%.
(This is ESI 1 Marker. The FM one marker was
61. Objective of the Scheme HRIDAY? the what is the Fiscal Deficit Target for Year
Ans: Preservation of Heritage 2018-19? Here Ans is 3.3%)

62. Inflation theory which combines both the Pull

Back and Push Back to explain the inflation:
Options:

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RBI Grade B 2018 Phase 2 – Finance & Management 117

7) Inventory control which uses cards? (In which

1) What type of structure is flexible and method, supply of components is regulated
adaptable? through the use of an instruction card sent
a) Organic along the production line?)
b) Mechanistic a) Abc analysis
c) none b) Just in time
d) boundaryless c) Kanban
d) Kaizan
2) Type of departmentalization (on the basis of
occupation)? 8) Control that makes speculations for
a) Process deviations, rather than after they have
b) Functional occurred?
c) None a) Concurrent
b) Reactive
3) Type of authority where people have direct c) Feedback
responsibility of fulfilling organizational goals? d) None
a) Line
b) Staff 9) Theory which takes task structure and
consideration into account?
4) Type of power where subordinates can be a) Managerial grid
punished?
a) Coercive 10) Leaders are born, not made, which theory?
b) Positional a) Trait
c) Legitimate b) Behavioural
d) Expert c) Path goal

5) Control which once put in system, operates 11) Leadership which takes advice from sub-
automatically? ordinates, and considers their feelings and
a) Cybernetic emotions?
b) Non cybernetic a) Paternalistic
c) Strategic b) Participative
c) Consultative
6) Inventory control which minimizes holding d) Authoritative
and ordering cost, while avoiding stock out e) Exploitative
cost?
a) Economic order quantity 12) Leadership style in which leader’s job is to set
b) Just in time the path for sub ordinates to achieve the
c) Kanban goals?
d) Kaizen a) Path goal theory

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RBI Grade B 2018 Phase 2 – Finance & Management 118

13) Theory in which subordinates measures the b) LLP and Company to NCLT
fairness of reward as compared to others?
a) Equity theory 21) What is the sequence of Order of payment
when a company liquidates?
14) What is the full form of ERG under ERG theory? a) insolvency cost
b) secured creditors
15) What is not a part of motivational factor in 2 c) workmen dues
factor theory? d) govt dues
a) Interpersonal relations
b) Recognition 22) Difference between DRT and LLP?
c) Advancement Ans: DRT is for individuals and partnerships,
NCLT is for Companies and LLPs
16) Eps and market price per share of 5 banks
were given and we were asked to calculate 23) Resolution plan for LLP and company is
which bank gives the highest P/E ratio. (P/E approved by?
ratio covered in detail in the course) a) NCLT
b) DRT
17) When 1:1 bonus shares are issued, which of c) Supreme court
the following will be impacted? Options were d) Govt
a) Face value reduces e) Parliament
b) No impact on net worth (correct)
c) Debt equity ratio will reduce 24) IBC Applies to which of the following:
d) None a) individuals
e) market value will reduce b) Partnership firms
c) Companies
18) What among the following is fastest driver of d) LLPs
market price of a share? e) All of the above
a) Dividend
b) EPS 25) Which all are 3 pillars under Basel?
c) Profit a) Capital adequacy,
d) None b) supervisory review,
c) banking discipline
19) Return on Investment comes under which
ratio? 26) Which all are risks covered under basel?
a) Profitability a) Credit risk,
b) Solvency b) market risk,
c) Liquidity c) operational risk,
d) Coverage d) liquidity risk

20) Who goes for resolution to whom? 27) What constitutes capital as per Basel?
a) Partnership and individual to DRT a) AT 1

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b) CET 1- common equity tier b) Efficacy

c) TIER 1 c) Effectiveness
d) TIER 2 d) Productivity
e) CCB
Ans: All of the above 35) Question on 360 degree appraisal?

28) When rupee depreciates, what should RBI do? 36) Burns and stalker theory is related to?
Ans: RBI sells dollars and buys rupees a) Contingency organizations
b) Traditional organizations
29) CCIL deals with which all clearances? c) Mechanistic organizations
a) Money,
b) G-Secs, 37) Control that takes place before plan initiates?
c) Foreign Exchange and Feed forward
d) Derivative markets
38) Structure that cuts across department lines?
30) MPC inflation target 4, +/-2, if breached for 3 Matrix
quarters, governor is answerable to the
central Govt. 39) Which of the following is a hygiene factor in 2
factor theory? Interpersonal relations
1 MARKERS:
31) Decision matrix under which the worst 40) As per budget, corporates have to raise____
outcome is selected among many and the capital through bonds (25%)
worst pay off related with the outcome is used
in decision making with the idea to minimize 41) Repo sucks liquidity whereas reverse repo
the loss in worst case: max-min inject liquidity

32) Method aimed at reducing times within 42) Rate which is not inclusive of cost of funds but
production system as well as response times reflects liquidity of banks?
from suppliers and to customers a) Base rate
a) JIT b) BPLR
b) EOQ c) MCLR
d) MIBOR
33) Which type of control for operational e) PLR
efficiency?
a) Budgetary control 43) Total PSL 40% of ANBC, what is the share of
b) Strategic control agriculture?
c) Operational control a) 18%
b) 10%
34) Ratio of output-input within time with due c) 17%
consideration for quality is d) 11%
a) Efficiency

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RBI Grade B 2018 Phase 2 – Finance & Management 120

44) PSL limit for housing loan in Metros is? Ans: Small and Medium Enterprises
a) 35,45(> 10 lacs population); 25,30(< 10 lacs
population) 51) PPP used in which type of sector?
b) 40,50(> 10 lacs population); 20,30(< 10 lacs a) Hotel
population) b) Large infrastructure projects
c) 35,45(< 10 lacs population); 25,30(> 10 lacs
population) 52) Budget for infrastructure sector?
d) 40,50(< 10 lacs population); 20,30(> 10 lacs
population) 53) Which one of the following is a way to raise
capital online bypassing regulations?
45) Under PSL, what is the Education loan limits to Ans: Crowd funding
India and abroad?
a) 10, 15 54) UPI is monitored by?
b) 10, 20 Ans: NPCI
c) 5, 10
55) Maximum time for resolution under IBC
46) Ways and Means Advances- Under FRBM, The without extension is?
Government can borrow from RBI through Ans: 180 days
Ans: WMA
56) Fiscal deficit target for 2018-19 is?
47) Which of the following is not a Liquidity tool Ans: 3.3%
used by RBI?
a) Repo, 57) Maximum GST rate is?
b) mss, Ans: 28%
c) msf,
d) omo, 58) Revised series of WPI base year.
e) Interest rate swaps Ans: 2011-12

48) Computer terminology OCR full form?

Ans: Optical character recognition

49) What is the Standard deduction for salaried

employee under budget 2018-19 - normally
not covered by UPSC and RBI aspirants.
Whoever says they have covered it
“holistically” are bluffing. RBI might ask more
such questions from the new budget too so we
will be covering them as well.

50) Udyami Mitra launched by SEBI is for which

sector?

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