Devika College - Model Exam 2 for Kerala bank – Cooperation and Other Economic System, Cooperative Principle , Types of

Cooperatives in India
1. In which sectors have cooperatives made significant contributions in India?
a) Agriculture, fertilizer distribution, consumer activities b) Technology, banking, healthcare
c) Manufacturing, mining, real estate d) Shipping, aviation, and space exploration
2. What are the objects of a Service Cooperative Bank?
I. To provide short and medium-term loans for agricultural purposes and long-term loans for special schemes approved
by NABARD, IDBI, SIDBI, NHB, etc.
II. To arrange the supply of farm requirements such as improved seeds, fertilizers, and insecticides.
III. To raise funds by way of deposits from members and others.
IV. To Maintain and supply costly agricultural implements on hire.
A) I, II, and III B) II and IV C) I and IV D) All of the above
3. What famous formula describes the multi-purpose co-operative society concept?
a) "Farming for the Future" b) "Better Farming, Better Business, and Better Living"
c) "Sustainable Agriculture for All" d) "Co-operation and Prosperity"
4. Statement 1: One of the primary sources of funds for a Service Co-operative Bank is share capital.
Statement 2: Service Co-operative Banks can receive loans, grants, and subsidies from the government.
A) Both Statement 1 and Statement 2 are correct
B) Both Statement 1 and Statement 2 are incorrect
C) Statement 1 is correct, and Statement 2 is incorrect
D) Statement 1 is incorrect, and Statement 2 is correct
5. In which year did the National Commission on Agriculture recommend the formation of Farmers' Service Societies?
a) 1960 b) 1972 c) 1984 d) 1990
6. What did the T.A. Pai Study Group recommend in 1974?
I. The T.A. Pai Study Group recommended the adoption of the Farmers' Service Society model proposed by the
National Commission on Agriculture.
II. The Study Group was in favor of Farmers' Service Society as the most appropriate agency for rural credit.
III. The Study Group suggested the dissolution of all existing rural credit institutions.
IV. The T.A. Pai Study Group recommended the establishment of Farmers' Service Societies in the private sector.
A) I and II B) II and IV C) I and III D) III and IV
7. What distinguished the Roach Dale Pioneers from other co-operative efforts before them?
I. They were the first to organize a co-operative store that succeeded permanently.
II. They focused on competition among members.
III. They established clear principles and rules for running a co-operative.
IV. They prioritized individual gains over community welfare.
A) II and IV B) I and III C) I, III, and IV D) All of the above
8. Which countries were represented in the Karve Commission on Co-operative Principles?
I. UK & USSR II. USA III. India IV. Germany
A) I and II B) I, II, III, and IV C) II, III, and IV D) I and III
9. Which Acts were passed by the Government to help relieve rural indebtedness?
a) Deccan Agricultural Relief Act, 1879 b) Land Improvement Loans Act, 1883
c) Agriculturists Loan Act, 1884 d) All of the above
10. How is the surplus of a co-operative society disposed of?
I. Provision is made for the development of the society. II. Provision is made for common services.
III. The surplus is fully distributed to the government.
IV. Some of the surplus is distributed among the members on an equitable basis.
A) I and II B) I, II, and IV C) II and III D) I, III, and IV
11. Which one of the following is not an objective of Co-operation?
a) Political and religious neutrality b) Raising moral standard of its members
c) Development of corporate life d) Abolition of social equalities
12. Which one of the following is not correct about Co-operative Commonwealth?
I. Co-operative Commonwealth implies economic, political, and social brotherhood among cooperatives of various
countries.
II. In Co-operative Commonwealth, there is no competition, no state control, and no overproduction

DEVIKA COLLEGE – Intensive Coaching Centre for Cooperative Examination – 9495581975, 9037765640
 III. Co-operative Commonwealth replaces profit with service to the community and seeks to balance private interest
with public good.
IV. The development of co-operation in all nations is the only solution to prevent conflicts and realize the Co-operative
Commonwealth.
a) I, II, III b) II, III, IV c) III, IV d) II only
13. How many co-operatives were functioning in Kerala during the pre-independent era?
a) 2000 b) 1000 c) 1669 d) 2500
14. How did religious figures view Co-operation?
I. Some people of the Church, such as Popes and Monks, believed that co-operation is Christianity applied to business.
II. Co-operation was seen as a way to realize "Heaven on Earth."
III. They believed selfishness and the profit motive were contrary to the ideals of co-operation.
IV. Co-operation was considered a means to promote individual success and wealth.
A) I, II, and III B) II and IV C) I and IV D) All of the above
15. What was the purpose of the ICA Sub-committee formed in 1934?
I. To evaluate the relevance of the Rochdale Principles in modern times.
II. To submit a report on how the co-operative principles were being observed.
III. To classify the Rochdale Principles into Essential and Non-Essential.
IV. To create an international co-operative law to replace the Rochdale Principles.
A) I, III, and IV B) II and IV C) I and IV D) I, II, and III
16. How is the surplus of the co-operative society disposed of?
I. Provision is made for the development of the society. II. Provision is made for common services.
III. Some of the surplus is distributed among members on an equitable basis.
IV. Surplus is used for overall development of the entire state .
A) I, II, and III B) II and IV C) I and IV D) All are correct
17. What is included in co-operative education?
I. Education of members. II. Education of office bearers.
III. Education of prospective members. IV. Education of General Public about Cooperation
A) I, II, and III B) II and IV C) I and IV D) All of the above
18. What is the Principle of Co-operation Among Co-operatives?
I. Co-operative organizations should actively co-operate with other co-operatives at local, national, and international levels.
II. Co-operation among co-operatives is necessary to gain greater strength and face adverse conditions.
III. The principle encourages co-operatives to work in isolation to avoid competition.
IV. The trend of modern economy towards closer economic integration supports co-operation among co-operatives.
A) I, II, and IV B) II and III C) I and IV D) III and IV
19. Which section of the KCS Amendment Act deals with the amalgamation of District Cooperative Banks (DCB) with the
Kerala State Cooperative Bank?
a) Section 14 AA b) Section 74 H c) Section 28 A d) Section 21 B
20. Which principle of co-operation is also known as the principle of growth?
a) Voluntary and Open Membership b) Democratic Member Control
c) Co-operation Among Co-operatives d) Concern for Community
21. What does the Co-operative Commonwealth presuppose?
I. The production and distribution of goods should largely be undertaken on a co-operative basis.
II. Co-operatives should play a dominant role in the national economy of countries.
III. International trade can be taken up by co-operatives.
IV. The co-operative system is limited to national boundaries and restricted by state control.
A) I, II, and III B) II and IV C) I and IV D) III and IV
22. In which century did the Co-operative Movement in India take its origin?
a) 18th century b) 19th century c) 20th century d) 21st century
23. Who sponsored the Co-operative Movement in India?
a) The British Government b) Indian farmers
c) International organizations d) Indian industrialists
24. Which of the following are distinguishing features of Capitalism?
I. Non-intervention of Government in economic matters.
II. Exploitation of man by man.
III. Class conflict and resultant class struggle.
DEVIKA COLLEGE – Intensive Coaching Centre for Cooperative Examination – 9495581975, 9037765640
 IV. Competition in the market as the regulator of price and business activities.
A) I, II, and III B) I, III, and IV C) II and IV D) I, II, III, and IV
25. Who started agricultural banks in Poona, Bombay province, in 1882?
a) Sir Robert Owen b) Sir William Wedderburn
c) Friedrich Raiffeisen d) Vithal Laxman Kavthekar
26. What is incorrect related to capitalism ?
I. Class conflict between labour and capital.
II. Wide gap between the 'haves' and 'have nots'.
III. Competition in the market as the regulator of price and business activities.
IV. Exploitation of man by man.
A) I and II B) II and IV C) None of these D) All of the above
27. Why are the Rochdale Pioneers considered the pioneers of the Co-operative Movement?
I. They organized the first permanently successful co-operative store.
II. They gave a definite shape to the co-operative movement.
III. The individuals involved were outstanding personalities.
IV. They established a co-operative wholesale society that remains prominent in Britain today.
A) I, II, and III B) II and IV C) I and IV D) I, II, III, and IV
28. Which committee first recommended the need for a separate agency for providing long-term loans in India?
a) Central Banking Enquiry Committee 1931 b) Royal Commission on Agriculture 1928
c) Mac Lagan Committee d) Banking Regulation Committee
29. What role did the International Co-operative Alliance (ICA) play in the reformulation of co-operative principles?
I. The ICA is an international body set up to promote co-operative ideas worldwide.
II. The ICA appointed a Sub-committee in 1934 to evaluate the Rochdale Principles.
III. In 1937, the ICA classified the Rochdale Principles into Essential and Non-Essential categories.
IV. The ICA formulated entirely new co-operative principles in 1937.
A) I, II, and III B) II and IV C) I and IV D) I, II, and IV
30. What are the goals of an economic system?
I. Economic freedom II. Economic efficiency III. Economic equity (fairness) IV. Economic stability
A) I, II, III B) I and III C) II and IV D) All of the above
31. Who was the chairman of the Royal Commission on Agriculture, which recommended the formation of land mortgage
banks?
a) H. Calvert b) T.A. Pai c) Lord Macaulay d) S. Saraiya
32. What was the first land mortgage bank in the world known as?
a) The Berlin Credit Bank b) The Silesian Land Shaft c) The American Land Bank
d) The German Agricultural Bank
33. When was the Travancore-Cochin Co-operative Societies Act passed?
a) 1949 b) 1951 c) 1969 d) 1914
34. What does an economic system involve?
I. The production, distribution, and consumption of goods and services.
II. A mechanism or social institution for coordinating economic activities.
III. The establishment of political institutions for international trade.
IV. A system for addressing the economic needs of a particular society.
A) I, II, and IV B) II and III C) I and III D) III and IV
35. Cooperation is described as a system based on:
a) Greed and personal aggrandizement b) Equality and equity
c) Competition and profit-making d) Bureaucratic control and regimentation
36. The Nidhis prevalent in South India are an example of which type of association?
a) Industrial Association b) Credit Association
c) Agricultural Association d) Export Association
37. What are the fundamental points on which Capitalism depends?
I. Right of inheritance II. Right of free enterprise
III. Right of contract IV. Right of private gain and personal freedom
A) I, II, and III B) II and IV C) I, III, and IV D) I, II, III, and IV
38. In which national development plans has the cooperative movement been included in India?
a) Industrial Development Plans b) Agricultural Expansion Programs
DEVIKA COLLEGE – Intensive Coaching Centre for Cooperative Examination – 9495581975, 9037765640
 c) Five Year Plans d) Educational Reforms
39. Who is responsible for issuing directions regarding the smooth implementation of the amalgamation of DCB with
Kerala Bank?
a) Government of Kerala b) The Registrar c) RBI d) The Managing Director of Kerala Bank
40. Which state in Kerala took the lead by enacting co-operative regulations in 1913?
a) Travancore b) Malabar c) Cochin d) Madras
41. Co-operative values include:
I. Self-responsibility II. Solidarity III. Openness IV. Individualism
A) I, II, and III B) II and IV C) I and IV D) III and IV
42. What are the four requisites of a co-operative society that relate to a State?
I. Territory (the area of operation of a co-operative society)
II. Population (its members of co-operatives)
III. Government (the managing committee or General Body)
IV. Sovereignty (the General Body having full power)
A) I, II, III B) I and III C) II and IV D) All of the above
43. Under which Act were Taccavi Loans (long-term loans) issued before the establishment of separate co-operative banks
for long-term loans?
a) Land Improvement Act 1883 b) Banking Regulation Act 1949
c) Cooperative Societies Act 1912 d) Agricultural Credit Act 1928
44. How does a co-operative society operate under state laws?
I. The laws in force in a state apply to a co-operative society.
II. The byelaws of the society must not exceed the provisions of the Co-operative Societies Act and Rules.
III. A co-operative society can bypass state laws to establish its own rules.
IV. Co-operative byelaws have no legal limitations.
A) I and II B) II and IV C) None of these D) All of the above
45. What was the name of the Co-operative Societies Act in the Malabar region before the formation of Kerala?
a) Cochin Co-operative Regulations b) Travancore Co-operative Regulations
c) Madras Co-operative Societies Act of 1932 d) Kerala Co-operative Societies Act, 1969
46. How does the co-operative movement relate to different economic systems?
I. The co-operative movement can co-exist with any form of economic system.
II. The co-operative movement adapts while upholding its special characteristics.
III. The co-operative movement depends entirely on capitalist systems.
IV. The co-operative movement cannot exist alongside socialism.
A) I and II B) II and IV C) I and III D) All of the above
47. Which Central Act gave legal sanction to provinces and princely states to regulate co-operatives?
a) Indian Co-operative Societies Act, 1935 b) Co-operative Societies Act, 1912
c) Travancore Co-operative Societies Act, 1951 d) Kerala Co-operative Societies Act, 1969
48. Statement 1: Capitalism operates with a minimum of government interference, allowing private enterprises to function
freely.
Statement 2: In a capitalist system, the government plays a central role in regulating and planning all economic
activities.
A) Both Statement 1 and Statement 2 are correct B) Both Statement 1 and Statement 2 are incorrect
C) Statement 1 is correct, and Statement 2 is incorrect D) Statement 1 is incorrect, and Statement 2 is correct
49. Which section of the 2019 Kerala Cooperative Societies (KCS) Amendment Act deals with the transfer of assets and
liabilities of District Cooperative Banks (DCB) to Kerala Bank?
a) Section 14 A b) Section 28 A c) Section 74 H d) Section 50 C
50. What role does the General Body play in a co-operative society?
I. The General Body holds full sovereignty over the co-operative society.
II. The General Body acts as the governing authority of the co-operative society.
III. The General Body's power is extebded to internal and external affairs of the society .
IV. The General Body is the final authority of the Cooperative society
A) I and II B) II and IV C) I and III D) All of the above
51. Land mortgage banks are also known as what?
a) Crisis Banks b) Depression Babies c) Development Banks d) Growth Banks
52. Statement 1: In a capitalistic society, individuals and businesses aim to earn a profit through their investments and labor.
DEVIKA COLLEGE – Intensive Coaching Centre for Cooperative Examination – 9495581975, 9037765640
 Statement 2: In capitalism, the means of production and distribution of goods and services are owned by private
individuals.
A) Both Statement 1 and Statement 2 are correct B) Both Statement 1 and Statement 2 are incorrect
C) Statement 1 is correct, and Statement 2 is incorrect D) Statement 1 is incorrect, and Statement 2 is correct
53. What was the purpose of the Kerala Co-operative Societies Act of 1969?
a) To establish co-operative banks in urban areas b) To enact a uniform law on co-operation throughout Kerala
c) To dissolve all co-operative societies in Kerala d) To regulate co-operatives only in rural areas
54. Which of the following is incorrect related to Capitalism
I There is a class war between Rich and Poor
II. There are strict government regulations preventing private contracts.
III. Freedom of contract ensures equality among all individuals.
IV. Private enterprises are managed for public welfare instead of private gain.
A) I only B) II and IV C) I and III D)II, III and IV
55. Before the formation of Kerala State, co-operatives were administered under which Act in Travancore?
a) Madras Co-operative Societies Act 1932 b) Cochin Co-operative Societies Act AVT
c) Travancore Co-operative Societies Act V of 1112 ME d) Kerala Co-operative Societies Act 1969
56. What major amendment occurred in the Kerala Co-operative Societies Act in 2000?
a) Establishment of the Co-operative Service Examination Board b) Introduction of cooperative tribunal
c) Regulation of private banks d) Formation of trade unions
57. When did the Kerala Co-operative (Amendment) Act, 1999 come into force?
a) 1.1.1999 b) 1.1.2000 c) 15.5.1969 d) 31.12.1999
58. What is the method of valuation adopted by Primary Cooperative Agriculture and Rural Development Banks for
advancing agricultural development loans called?
a) Market value b) Presumptive value or prospective value c) Book value d) Present value
59. What was included in the Kerala Co-operative (Amendment) Act 1999, which came into force in 2000?
I. Providing membership to local body institutions.
II. Introduction of a Deposit Guarantee Scheme in Primary Agricultural Credit Societies.
III. Consortium Lending Scheme and Co-operative Development and Welfare Fund.
IV. Establishment of an Independent Election Commission for co-operatives.
A) I, II, and III B) II and IV C) I, III, and IV D) I, II, III, and IV
60. What major amendments were made to the Kerala Co-operative Societies Act in 2000?
I. Appointment of a Director of Audit. II. Creation of a Co-operative Election Commission.
III. Establishment of a Co-operative Service Examination Board.
IV. Creation of a fund for consortium lending.
A) All of the above B) I and II C) II and IV D) III and IV
61. What was the primary purpose of the Kerala Co-operative Societies Act, 1969?
I. To regulate co-operatives in the State of Kerala.
II. To create a Co-operative Tribunal with certain powers of the court.
III. To provide a legal framework for the constitution of a Co-operative Union.
IV. To promote co-operatives at a national level.
A) I, II, and III B) II and IV C) I and IV D) III and IV
62. When did the Kerala Co-operative (Amendment) Act, 1999 come into force?
a) 1.1.1999 b) 1.1.2000 c) 15.5.1969 d) 31.12.1999
63. Which committee suggested the constitution of Rural Banks for the development of the rural sector in 1972?
a) T.A. Pai Committee b) Saraiya Committee
c) National Development Council d) Planning Commission
64. In which year did the National Commission on Agriculture submit its report?
a) 1971 b) 1972 c) 1974 d) 1969
65. Farmers Service Societies (FSS) are intended for which of the following groups?
a) Large-scale farmers b) Urban businessmen
c) Small and marginal farmers in rural areas d) Industrialists
66. How many days' notice must be given to members of DCB before they are allowed to withdraw their shares, deposits,
and loans?
a) 15 days b) 7 days c) 30 days d) 45 days

DEVIKA COLLEGE – Intensive Coaching Centre for Cooperative Examination – 9495581975, 9037765640
67. Who is responsible for issuing guidelines on the scope of the administrative audit and the audit memorandum for
Kerala Bank?
a) RBI b) Government of India c) The Registrar in consultation with the Government
d) The Board of Kerala Bank
68. Which of the following statements about NAFCUB are correct?
I. NAFCUB is an apex-level promotional body for Urban Co-operative Banks and Credit Societies in India.
II. It was started on 17-2-1977, with its headquarters in New Delhi.
III. The primary objective is to promote the Urban Co-operative Credit movement and protect the sector's interest.
IV. NAFCUB was registered under the Multi-State Co-operative Societies Act as a Multi-State Co-operative Society.
A) I, II, and III B) II and IV C) I and IV D) I, II, III, and IV
69. When and where was the second land mortgage bank established in India?
a) 1930 in Bombay b) 1924 in Nowgoan, Bengal
c) 1935 in Madras d) 1925 in Delhi
70. What does "Presumptive Value" refer to in the context of agricultural development loans?
a) The current value of the land b) The historical value of the land
c) The prospective value of the land after development and issuance of loans
d) The value based on the borrower's assets
71. What is "Incremental Income" in the context of agricultural loans?
a) The original income before the loan was issued b) The income lost due to land development
c) The additional income generated by the borrower due to the utilization of the loan
d) The income taxed after loan repayment
72. Statement 1: The D.V. File contains the application form of the member availing the loan, and ends with the voucher on
the disbursement of the loan amount.
Statement 2: The D.V. File also includes the security of the loan, such as the Valuation Certificate, Title Deed, and
Encumbrance Certificate.
A) Both Statement 1 and Statement 2 are correct B) Both Statement 1 and Statement 2 are incorrect
C) Statement 1 is correct, and Statement 2 is incorrect D) Statement 1 is incorrect, and Statement 2 is correct
73. Statement 1: The Valuation Officer in PCARDB is the custodian of the D.V. File and acts as the Co-Trustee on behalf of
the Registrar.
Statement 2: The Secretary of PCARDB is the custodian of the D.V. File throughout the loan process.
A) Both Statement 1 and Statement 2 are correct B) Both Statement 1 and Statement 2 are incorrect
C) Statement 1 is correct, and Statement 2 is incorrect D) Statement 1 is incorrect, and Statement 2 is correct
74. Under which rule are milk societies mentioned in the context of Dairy Co-operatives?
a) Rule 28 (A) b) Rule 10 (2) c) Rule 15 (5) d) Rule 22 (B)
75. What was the primary objective of the White Revolution in India?
a) To increase grain production b) To enhance milk production and dairy development
c) To improve fisheries d) To expand textile industries
76. What type of co-operative society is COIRFED an example of?
a) Consumer Society b) Marketing Society
c) Apex Producers Society d) Housing Society
77. What is the motto of COIRFED?
a) "Uniting for Progress" b) "Weaving Together Nature and Beauty"
c) "Empowering Farmers" d) "Towards a Green Future"
78. What is the term used to describe the coir business in Kerala?
a) Blue Business b) Green Business
c) Yellow Business d) White Business
79. Which city is known as the Coir capital of the country?
a) Alappuzha b) Kochi c) Kollam d) Kottayam
80. Which organization provides a major source of financial assistance to COIRFED?
a) NABARD b) NCDC c) RBI d) SIDBI
81. What is the name of the monthly journal published by COIRFED?
a) Coir Vyavasayam b) Coir Times c) Coir News d) Coir Journal
Model Exam 2 – Devika College – Answers Available on Devika College Mobile Application

DEVIKA COLLEGE – Intensive Coaching Centre for Cooperative Examination – 9495581975, 9037765640