Indian Overseas Bank Exam Paper

Indian Overseas Bank P.O. Exam., 2009
English Language : Solved Paper
(Held on 5-4-2009)

Directions—(Q. 1–15) Read the following passage carefully and answer the questions given below it.
Certain words have been printed in bold to help you locate them while answering some of the
questions.
Goldman Sachs predicted that crude oil price would hit $200 and just as it appeared that alternative
renewable energy had a chance of becoming an economically viable option, the international price of
oil fell by over 70%. After hitting the all-time high of $147 a barrel, a month ago, crude oil fell to less
than $40 a barrel. What explains this sharp decline in the international price of oil? There has not been
any major new discovery of a hitherto unknown source of oil or gas. The short answer is that the
demand does not have to fall by a very sizeable quantity for the price of crude to respond as it did. In
the short run, the price elasticity of demand for crude oil is very low. Conversely, in the short run, even
a relatively big change in the price of oil does not immediately lower consumption. It takes months, or
years, of high oil price to inculcate habits of energy conservation. World crude oil price had remained
at over $60 a barrel for most of 2005-2007 without making any major dent in demand.
The long answer is more complex. The economic slowdown in the US, Europe and Asia along with
dollar depreciation and commodity speculation have all had some role in the downward descent in the
international price of oil. In recent years, the supply of oil has been rising but not enough to catch up
with the rising demand, resulting in an almost vertical escalation in its price. The number of crude oil
futures and options contracts have also increased manifold which has led to significant speculation in
the oil market. In comparison, the role of the Organization of Petroleum Exporting Countries (OPEC)
in fixing crude price has considerably weakened. OPEC is often accused of operating as a cartel
restricting output thus keeping prices artificially high. It did succeed in setting the price of crude during
the 1970s and the first half of the 80s. But, with increased futures trading and contracts, the control of
crude pricing has moved from OPEC to banks and markets that deal with futures trading and contracts.
It is true that most oil exporting regions of the world have remained politically unstable fuelling
speculation over the price of crude. But there is little evidence that the geopolitical uncertainties in west
Asia have improved to weaken the price of oil. Threatened by the downward slide of oil price, OPEC
has, in fact, announced its decision to curtail output.
However most oil importers will heave a sigh of relief as they find their oil import bills decline except
for those who bought options to import oil at prices higher than market prices. Exporting nations, on
the other hand, will see their economic prosperity slip. Relatively low price of crude is also bad news
for investments in alternative renewable energy that cannot compete with cheaper and non-renewable
sources of energy.
1. Why are oil importing countries relieved ?
(A) Price of crude reached $ 147 not $ 200 as was predicted
(B) Discovery of oil reserves within their own territories
(C) Demand for crude has fallen sharply
(D) There is no need for them to invest huge amounts of money in alternative sources of energy
(E) None of these
Ans : (E)
2. Which of the following factors is responsible for rise in speculation in crude oil markets ?
1. OPEC has not been able to restrict the oil output and control prices
2. The supply of oil has been rising to match demand
3. Existence of large number of oil futures and oil contracts
(A) Only 1
(B) Both 1 & 2
(C) Only 3
(D) All 1, 2 & 3
(E) None of these
Ans : (C)
3. What does the phrase “the price elasticity of demand for crude oil is very low” imply ?
(A) When the price rises the demand for crude oil falls immediately
(B) A small change in demand will result in a sharp change in the price of crude
(C) Within a short span of time the price of crude oil has fluctuated sharply
(D) Speculation in oil does not have much of an impact on its price
(E) None of these
Ans : (E)
4. Which of the following is/are TRUE in the context of the passage ?
1. The decline in oil prices has benefited all countries
2. Renewable energy sources are costlier than non-renewable ones
3. Lack of availability of alternative renewable energy resulted in rise in demand for crude
(A) Only 2
(B) Both 1 & 2
(C) Both 2 & 3
(D) Only 3
(E) None of these
Ans : (D)
5. What has been the impact of the drop in oil prices ?
(A) Exploration for natural gas resources has risen
(B) The dollar has fallen sharply
(C) OPEC has decided to restrict its production of oil
(D) Economic depression in oil importing countries
(E) Drastic fall in demand for crude oil
Ans : (C)
6. What led to alternative energy sources being considered economically feasible ?
(A) The price of oil rose by 70 per cent while renewable energy sources are cheap
(B) Exorbitant crude oil prices made alternative energy sources an attractive option
(C) Expert predictions that the price of oil would alternately escalate and plunge sharply
(D) Evidence that no new sources of oil and gas are available
(E) None of these
Ans : (B)
7. What does the author want to convey by citing the statistic of 2005-2007 ?
(A) The prices of crude were rising gradually so people were not alarmed
(B) The dollar was a strong currency during that period
(C) Many people turned to alternative renewable energy sources because of high oil prices
(D) If the price of oil is high for a short time it does not necessarily result in a drop in consumption
(E) People did not control their demand for fuel then which created the current economic slowdown
Ans : (D)
8. Which of the following factors is not responsible for the current drop in oil prices ?
(A) Economic crisis in America, European and Asian nations
(B) Speculation in oil markets
(C) Weakening of the dollar
(D) Political stability in oil exporting countries
(E) All the above are not responsible for the current drop in oil prices
Ans : (E)
9. Which of the following is NOT TRUE in the context of the passage ?
1. OPEC was established in 1970 to protect the interests of oil importing countries
2. When demand for oil exceeds supply there is a sharp rise in price
3. Today futures trading markets set the oil prices to a large extent
(A) Only 1
(B) Only 3
(C) Both 1 & 3
(D) Only 2
(E) None of these
Ans : (D)
10. Which of the following is the function of OPEC ?
(A) Controlling speculation in oil
(B) Ensuring profits are equally distributed to all its members
(C) Monitoring inflation in oil prices and taking necessary steps to lower it
(D) Guaranteeing political instability in oil exporting countries does not impact output
(E) Determining prices of crude oil
Ans : (E)
Directions—(Q. 11–13) Choose the word which is most similar in meaning to the word printed in bold
as used in the passage.
11. INCULCATE
(A) Modify
(B) Construct
(C) Initiate
(D) Fix
(E) Instill
Ans : (D)
12. FUELLING
(A) Incentive
(B) Supplying
(C) Stimulating
(D) Irritating
(E) Restoring
Ans : (C)
13. DENT
(A) Reduction
(B) Break
(C) Tear
(D) Breach
(E) Split
Ans : (A)
Directions—(Q. 14–15) Choose the word which is most opposite in meaning to the word printed in
bold as used in the passage.
14. CONVERSELY
(A) Compatibly
(B) Similarly
(C) Likely
(D) Aligning
(E) Resembling
Ans : (B)
15. WEAKEN
(A) Powerful
(B) Nourish
(C) Intense
(D) Boost
(E) Energise
Ans : (D)
Directions—(Q. 16–20) Which of the phrases (A), (B), (C) and (D) given below each sentence should
replace the phrase printed in bold in the sentence to make it grammatically correct ? If the sentence is
correct as it is given and no correction is required, mark (E) as the answer.
16. We have hired an advertising agency to prepare a campaign to encourage people votes.
(A) People from voting
(B) Voting for people
(C) People to vote
(D) Votes by people
(E) No correction required
Ans : (C)
17. During the training programme the new recruits will be briefed about how their role in the new
organisation.
(A) What their roles
(B) About their role
(C) For its roles
(D) Which are their role
(E) No correction required
Ans : (B)
18. The equipment is in such poor condition that we have no alternative to buy new ones.
(A) Many alternative like
(B) Any alternative except
(C) No other alternative
(D) No alternative but
(E) No correction required
Ans : (D)
19. Since the deadline has been changed from next week to this Thursday you should give this work
priority.
(A) Be given this work priority
(B) Not give priority this work
(C) Prioritised this work
(D) Priority this work
(E) No correction required
Ans : (E)
20. After the success of our project we have been receiving more requests than we do not have the
resources to handle them.
(A) Many requests but
(B) Most of the requests
(C) More requests that
(D) Too many requests
(E) No correction required
Ans : (A)
Directions—(Q. 21–25) In each question below, a sentence with four words printed in bold type is
given. These are lettered as (A), (B), (C) and (D).One of these four words printed in bold may be either
wrongly spelt or inappropriate in the context of the sentence. Find out the word which is wrongly spelt
or inappropriate, if any. The letter of that word is your answer. If all the words printed in bold are
correctly spelt and also appropriate in the context of the sentence, mark (E) i.e., ‘All correct’ as your
answer.
21. The document (A) he gave me was long and complicated (B) and I struggled (C) to understand (D)
it. All correct (E)
Ans : (E)
22. We shall have to await (A) and see if these measures (B) are sufficient (C) to address (D) the
problem. All correct (E)
Ans : (A)
23. They are negotiating (A) to try and reach (B) an agreement which will beneficial (C) everyone
concerned. (D) All correct (E)
Ans : (C)
24. The company has decided (A) to allott (B) a substantial (C) portion (D) of its profits to research and
development. All correct (E)
Ans : (B)
25. It remains (A) to be seen whether (B) these reforms (C) will be acceptable (D) by the Board. All
correct (E)
Ans : (D)
Directions—(Q. 26–30) Rearrange the following five sentences (1), (2), (3), (4) and (5) in the proper
sequence to form a meaningful paragraph; then answer the questions given below them.
(1) For instance, if we measure the room temperature continuously and plot its graph with time on Xaxis
and temperature on the Y-axis,we get a continuous waveform, which is an analog signal. Analog is
always continuous.
(2) The absence or presence of something can be used to plot a digital signal.
(3) An analog signal is a continuously varying signal, similar to a sinusoidal waveform.
(4) Any signal can be classified into one of the two types : analog and digital.
(5) In contrast, a digital signal takes the form of pulses,where we have something or nothing.
26. Which of the following should be the FIRST sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (D)
27. Which of the following should be the FIFTH sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (B)
28. Which of the following should be the FOURTH sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (E)
29. Which of the following should be the THIRD sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (A)
30. Which of the following should be the SECOND sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (C)
Directions—(Q. 31–40) Read each sentence to find out whether there is any grammatical error or
idiomatic error in it. The error, if any, will be in one part of the sentence. The letter of that part is the
answer. If there is no error, the answer is (E) (Ignore errors of punctuation, if any.)
31. He has taken care to (A) / compliance with the norms (B) / so he expects the proposal (C) / to be
approved without delay. (D) No error (E)
Ans : (B)
32. Under the terms of the new deal (A) / the channel can broadcast (B) / the next cricket tournament to
be (C) / played among India and Australia. (D) No error (E)
Ans : (D)
33. Our equipment gets damage (A) / very often in summer (B) / because there are (C) / frequent power
cuts. (D) No error (E)
Ans : (A)
34. We have received many (A) / of the letters from customers (B) / asking us to extend (C) / the
deadline to repay their loans. (D) No error (E)
Ans : (B)
35. Since I had lived there (A) / for many years the villagers (B) / were very comfortable talked (C) / to
me about their problems. (D) No error (E)
Ans : (C)
36. We have been under (A) / a lot of pressure to (B) / open fifty new stores (C) / by the ending of the
year. (D) No error (E)
Ans : (D)
37. The government has (A) / launched many creative schemes (B) / to make banking services (C) /
available to everyone. (D) No error (E)
Ans : (E)
38. The company is in debt (A) / and has been unable (B) / to pay their employees’ salaries (C) / for the
past six months. (D) No error (E)
Ans : (C)
39. This is turned out to be (A) / one of our most successful projects (B) / and we have made quite (C) /
a large profit from it. (D) No error (E)
Ans : (A)
40. A non banking financial company is a (A) / financial institution similarly to a bank (B) / but it
cannot issue (C) / cheque books to customers. (D) No error (E)
Ans : (B)
Directions—(Q. 41–50) In the following passage there are blanks, each of which has been numbered.
These numbers are printed below the passage and against each, five words are suggested, one of which
fits the blank appropriately. Find out the appropriate word in each case.
On October 2, 1983 the Grameen Bank Project …(41)… the Grameen Bank. We invited the Finance
Minister to be the Chief Guest at our …(42)… ceremony. But when the Ministry came to …(43)… that
the ceremony would take place in a remote district, they said it would not be an …(44)… place to
launch a Bank and that the ceremony should be …(45)… in Dhaka so that all the top Government
Officials could …(46)… We stood firm and …(47)… to them that we did not work in urban areas so it
made no …(48)… to have the ceremony in a city …(49)… we had no borrowers. We had the ceremony
in a big open field with the Finance Minister present as Chief Guest. For all of us who had worked so
hard to …(50)… this it was a dream come true.
41. (A) reorganised
(B) merged
(C) named
(D) converted
(E) became
Ans : (E)
42. (A) opening
(B) closing
(C) dedicated
(D) inaugurate
(E) induction
Ans : (A)
43. (A) reveal
(B) know
(C) aware
(D) inform
(E) acquaint
Ans : (B)
44. (A) excellent
(B) available
(C) inauspicious
(D) appropriate
(E) obvious
Ans : (D)
45. (A) invited
(B) assembled
(C) done
(D) shifted
(E) held
Ans : (E)
46. (A) present
(B) accompany
(C) attend
(D) involve
(E) entertain
Ans : (C)
47. (A) apologised
(B) told
(C) explained
(D) denied
(E) refused
Ans : (C)
48. (A) difference
(B) sense
(C) difficulty
(D) meaning
(E) point
Ans : (B)
49. (A) where
(B) while
(C) that
(D) however
(E) which
Ans : (A)
50. (A) obey
(B) achieve
(C) discover
(D) built
(E) perform
Ans : (B)

INDIAN OVERSEAS BANK 2009

GENERAL AWARENESS

1Q. Which one of the following is the percentage upto which FDI in defense sector is allowed ?
(A) 26%
(B) 41%
(C) 31%
(D) 49%
(E) None of these
Answer : (A)

2Q. Whenever RBI does some Open Market Operation Transactions, actually it wishes to regulate which of the following ?
(A) Inflation only
(B) Liquidity in economy
(C) Borrowing powers of the banks
(D) Flow of Foreign Direct Investments
(E) None of these
Answer : (C)

3Q. The maximum amount of the Total Revenue earned by the Govt. of India comes from—
(A) Income Tax
(B) Customs Duty
(C) Excise Duty
(D) Value Added Tax
(E) Corporate Tax
Answer : (E)

4Q. In economics it is generally believed that the main objective of a Public Sector Financial Company like Bank is to—
(A) Employ more and more people
(B) Maximize total profits
(C) Maximize total production
(D) Provide financial service to the people of the nation of its origin across the country
(E) Sell the goods at subsidized cost
Answer : (D)

5Q. Which of the following is TRUE about the ‘Single—EURO Payment Area’ a concept very much in news these days ?
1. It is a concept floated by European Union.
2. It aims to create an integrated market for payment services in EURO.
3. It is a contract to convert all US dollar payments into EURO, which is a currency almost free from fluctuations in its value.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) None of these
Answer : (D)

6Q. What is a Repo Rate ?
(A) It is a rate of which RBI sell Govt. securities to banks
(B) It is a rate at which RBI buys Govt. securities from banks
(C) It is a rate at which RBI allows small loans in the market
(D) It is a rate which is offered by Banks to their most valued customers or prime customers
(E) None of these
Answer : (A)

7Q. In a Company the use of price sensitive corporate information by the Company-people to make gains or cover losses is known as—
(A) Insider trading
(B) Future trading
(C) Foreign trading
(D) Stock trading
(E) None of these
Answer : (A)

8Q. As per the directives issued by the Prime Minister’s Economic Advisory Council (EAC), the percentage of the current account deficit (of the total GDP) during 2008-2009 should not be more than—
(A) 2•8%
(B) 3•0%
(C) 3•1%
(D) 3•2%
(E) None of these
Answer : (D)

9Q. The agricultural census is done at which of the following intervals ?
(A) There is no fixed term
(B) Every year
(C) Once in three years
(D) Once in ten years
(E) Once in five years
Answer : (E)

10. Which of the following cannot be called as a Debt Instrument as referred in financial transactions ?
(A) Certificate of Deposits
(B) Bonds
(C) Stocks
(D) Commercial Papers
(E) Loans
Answer : (C)

11Q. The amount of which of the following reflects the overall budgetary position of the Govt. of India at a given time ?
(A) Revenue Deficit
(B) Total Amount of Income Tax collected
(C) Capital Deficit
(D) Fiscal Deficit
(E) None of these
Answer : (D)

12Q. The 11th Five Year Plan is termed as plan for—
(A) India’s Health
(B) Eradication of poverty from India
(C) India’s Education
(D) Development of Rural India
(E) None of these
Answer : (C)

13Q. Who amongst the following gave the concept of PURA (Providing Urban facilities in Rural Areas) ?
(A) Rajiv Gandhi
(B) Manmohan Singh
(C) A.P.J. Abdul Kalam
(D) Sonia Gandhi
(E) None of these
Answer : (C)

14Q. The higher rate of growth of economy certainly reduces the—
(A) Gender inequalities
(B) Poverty
(C) Population of a country
(D) Flow of foreign direct investment
(E) None of these
Answer : (B)

15Q. Bharat Nirman does not cover which of the following areas ?
(A) Rural employment
(B) Rural Housing
(C) Rural Water supply
(D) Irrigation facilities
(E) It covers all the above areas
Answer : (A)

16Q. Which of the following committees has given its recommendations on ‘Financial Inclusion’ ?
(A) Rakesh Mohan Committee
(B) Rangarajan Committee
(C) Sinha Committee
(D) Kelkar Committee
(E) None of these
Answer : (B)

17Q. Which of the following correctly describes what sub-prime lending is ?
1. Lending to the people who cannot return the loans.
2. Lending to the people who are high value customers of the banks.
3. Lending to those who are not a regular customer of a bank.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Answer : (A)

18Q. Which of the following is/are the major concepts visible in today’s banking industry in India ?
1. Risk Based Management
2. Growing competition
3. IT Initiatives
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 2 and 3
(E) All 1, 2 and 3
Answer : (A)

19Q. Which of the following services provided by a bank in India is not liable for Service Tax as per existing laws ?
(A) Safe Deposit Lockers
(B) Merchant Banking Services
(C) Credit cards
(D) Discount earned on certain discounted bills
(E) None of these
Answer : (D)

20Q. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as—
(A) Probability risk
(B) Market risk
(C) Inflation risk
(D) Credit risk
(E) None of these
Answer : (B)

21Q. In India Minimum Support Prices are announced by the Govt. of India every year. Which of the following commodities is not covered under this policy ?
(A) Sugar
(B) Wheat
(C) Cotton
(D) White goods
(E) All are covered under the policy
Answer : (D)

22Q. Which of the following policies of a country brings a crucial impact on the economic growth of the nation ?
1. Fiscal policy
2. Foreign policy
3. Social policies
(A) Only 1
(B) Only 2
(C) Only 1 and 2
(D) Only 2 and 3
(E) All 1, 2 and 3
Answer : (C)

23Q. Which of the following financial products is not much popular in India as they are launched recently only ?
(A) Development Bonds
(B) Insurance Policies
(C) Mutual funds
(D) Sovereign Wealth Funds
(E) All are very popular products in India
Answer : (D)

24Q. Which of the following countries is given permanent membership of the World Trade Organisation recently ?
(A) Ukrain
(B) India
(C) Pakistan
(D) Sri Lanka
(E) None of these
Answer : (E)

25Q. When the prices of commodities, goods and services start declining consistently, the phenomenon is known as—
(A) Discount yield
(B) Deflation
(C) Negative growth
(D) Market capitalization
(E) None of these
Answer : (B)

26Q. Which of the following products launched by most of the banks help farmers in getting instant credit for various agicultural purposes ?
(A) Kissan Credit Card
(B) Personal Loan
(C) Business Loan
(D) ATM Card
(E) None of these
Answer : (A)

27Q. Which of the following policies of the financial sectors is basically designed to transferring local financial assets into foreign financial asset freely and at market determined exchange rates ? Policy of—
(A) Capital Account convertibility
(B) Financial Deficit Management
(C) Minimum Support Price
(D) Restrictive Trade Practices
(E) None of these
Answer : (A)

28Q. A customer wishes to purchase some US dollars in India. He/ She should go to—
(A) Public Debt Division of the RBI only
(B) American Express Bank Only
(C) RBI or any branch of a bank which is authorized for such business
(D) Ministry of Foreign Affairs
(E) None of these
Answer : (C)

29Q. India’s Look East Policy was launched in the year—
(A) 1990
(B) 1992
(C) 1995
(D) 2000
(E) None of these
Answer : (B)

30Q. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign nation ?
(A) Personal Loan
(B) Corporate Loan
(C) Educational Loan
(D) Mortgage Loan
(E) None of these
Answer : (C)

31Q. A Bank/Financial Organization these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced organization’s security awareness manual. This step of the organization can be classified under which one of the following categories of measures for a business ?
(A) Preventive
(B) Compliance
(C) Corrective
(D) Detective
(E) None of these
Answer : (B)

32Q. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank ?
1. It does not accept deposits.
2. It has a limited cash disbursement capacity.
3. Lack of human interface
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these are limitations
Answer : (B)

33Q. Which of the following is/are the objectives of developing Special Economic Zones (SEZs) ?
1. Generate additional economic activities.
2. Generate additional employment opportunities.
3. Promotion of export of goods and services.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Answer : (E)

34Q. An industry which is fighting hard to increase its market share in existing market (with new popular products) is known as—
(A) Market vendor
(B) Market operator
(C) Market leader
(D) Market follower
(E) Market challenger
Answer : (D)

35Q. Maruti view Tata Motors as prominent competitor but does not view Volvo as a competitor. This type of competition in the market is known as—
(A) Product competition
(B) Production flow competition
(C) Cost Control competition
(D) Service competition
(E) None of these
Answer : (C)

36. Which of the following is not a social assistance programme launched by the Govt. of India ?
(A) National Old Age Pension Scheme
(B) Annapurna Scheme
(C) National Family Benefit Scheme
(D) Indira Awaas Yojana
(E) All are social assistance programmes
Answer : (D)

37Q. What is the Statutory Liquidity Ratio (SLR) at present ?
(A) 14%
(B) 18%
(C) 20%
(D) 24%
(E) None of these
Answer : (D)

38. Mr. Raman Singh has taken over as the Chief Minister of which of the following States after aGeneral Election in November/December 2008 ?
(A) Jammu & Kashmir
(B) Madhya Pradesh
(C) Delhi
(D) Chhattisgarh
(E) None of these
Answer : (D)

39. The World Development Report- 2009 is released a few months earlier, by which of the following Organisations ?
(A) UNESCO
(B) ADB
(C) IMF
(D) WTO
(E) World Bank
Answer : (E)

40. As per news published in newspapers, how much money Govt. of India has decided to invest in Infrastructure Sector as an initiative ? About—
(A) Rs. 30,000 crores
(B) Rs. 40,000 crores
(C) Rs. 50,000 crores
(D) Rs. 60,000 crores
(E) Rs. 70,000 crores
Answer : (E)

41. Mr. Hosni Mubarak who is the recipient of the Jawaharlal Nehru Award for International Understanding recently is the—
(A) President of South Africa
(B) Prime Minister of South Africa
(C) President of Egypt
(D) Prime Minister of Egypt
(E) Secretary General of UNO
Answer : (C)

42. Mr. Paul Krugman whose name was in news recently is a famous—
(A) Medical Scientist
(B) Economist
(C) Author
(D) Astrophysicist
(E) Sports Personality
Answer : (B)

43Q. The Buckingham Canal which is declared a National Waterway of India recently is a Canal running from—
(A) Punjab to Haryana
(B) Mumbai to Goa
(C) Vijayawada Villupuram
(D) Cochin to Kozhikode
(E) Kanyakumari to Rameshwaram
Answer : (C)

44Q. Many times we see in newspapers that some projects are launched by the Govt. Authorities on ‘PPP’ basis. What is the full form of ‘PPP’ ?
(A) Preferential Payment Plan
(B) Public Private Partnership
(C) Partial Payment Project
(D) Popular Private Project
(E) Public Private Plan
Answer : (B)

45Q. Which of the following countries is not the member of Asia Pacific Economic Cooperation (APEC) which was in news recently ?
(A) South Korea
(B) Canada
(C) China
(D) India
(E) U.S.A.
Answer : (D)

46Q. The compulsory Education Act will ensure education to the children upto the age of—
(A) 10 years
(B) 12 years
(C) 8 years
(D) 6 years
(E) None of these
Ans : (E)

47Q. Saniya Mirza and Mahesh Bhupati won which of the following titles recently ?
(A) Australia Open
(B) U.S. Open
(C) Wimbledon Finals
(D) Davis Cup Finals
(E) None of these
Answer : (A)

48Q. Mr. Kunwar Narayan who was selected for the Jnanpith Award (for 2005) recently is a famous poet and writer in—
(A) Urdu
(B) English
(C) Gujarathi
(D) Punjabi
(E) Hindi
Answer : (E)

49Q. Which of the following countries is planning to launch its Moon Mission Space Vehicle named as Moon-LITE ?
(A) Pakistan
(B) Germany
(C) Russia
(D) France
(E) Britain
Answer : (E)

50Q. Which of the following books is written by Mr. Nandan Nilekani ?
(A) Imagining India
(B) A Good Woman
(C) Between the Assassinations
(D) The White Tiger
(E) None of three
Answer : (A)

Indian Overseas Bank PO 2009 Solved Question Paper
General Awareness

1. As we all know rise of the ‘BRICs’ has left a vast impact on almost all aspects of the global economy. However, which of the following cannot be called as the direct effect(s) of ‘Rise of the BRICs’ on global/other powerful economy/economies ?
1. Countries like China wish to learn more about outsourcing from India.
2. It has made countries to suffer from Sub-prime Crisis.
3. EURO has become a powerful currency and many non-Euro countries are in ‘Swap Agreement’ with various nations.

(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these

2. As per the reports published in the newspapers/journals how much amount the Govt. of India is planning to infuse in Public Sector Banks to make them competitive and strong globally ?
About—
(A) Rs. 10,000 crore
(B) Rs. 15,000 crore
(C) Rs. 20,000 crore
(D) Rs. 25,000 crore
(E) Rs. 30,000 crore

3. What is the maximum stake the Govt. of India has in any public sector bank at present ?
(A) 40%
(B) 49%
(C) 50%
(D) 64%
(E) 74%

4. Which of the following is not a major highlight of the Union Budget 2008-09 ?
1. A target of Rs. 2•80 lakhs crore is fixed for providing credit to agriculture sector.
2. Limit of the Banking Cash Transaction Tax is raised from present 1% to 1•5%.
3. PAN requirement is not mandatory for financial transactions. Other Ids are also acceptable.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 2 and 3
(E) All 1, 2 and 3

5. As per the news in major financial newspapers a ‘Rashtriya Swasthya Bima Yojana’ is launched in Delhi and Haryana States for members of unorganized sectors. Under the scheme each family is likely to get the benefit of Rs.………
(A) 15,000
(B) 20,000
(C) 25,000
(D) 30,000
(E) 50,000

6. As proposed in the Union Budget 2008-09 a ‘Risk Capital Fund’ is set up by the Govt. of India. Who amongst the following will maintain and operate that fund ?
(A) NABARD
(B) SIDBI
(C) ECGC
(D) RBI
(E) None of these

7. As per the Economic Survey 2007-08 presented in the Lok Sabha in February 2008, what has been the percentage growth in Bank credit ? About—
(A) 10%
(B) 15%
(C) 18%
(D) 21%
(E) 26%

8. As per the budget of the Indian Railways for 2008-09 the operating ratio of the railways has—
(A) Improved only by 0•5%
(B) Decreased by 0•5%
(C) Remained at the same level on which it was in 2007-08
(D) Reached at the level of 81%
(E) Reduced to the level of 63% which was the level of 2000-01

9. The government of India has launched a new scheme for the ‘Girl Child’. What is the name of the scheme ?
(A) Raj Lakshmi
(B) Rani Bitia
(C) Dhan Lakshmi
(D) Aanandita
(E) None of these

10. The President of India recently signed the much-awaited notification for the implementation of the suggestions made by the ‘Delimitation Commission’.
What will be the effect of this notification ?
(A) Parliamentary and Assembly constituencies will be redefined
(B) Candidates from SC/ST categories will get all benefits for another 15 years’ time
(C) The boundaries of the National Capital, New Delhi will be extended further
(D) Operations of the Cooperative Banks and Societies will not be limited to the state of their origin. They will also be like Public Sector Banks
(E) None of these

11. As per the new policy the number of Judges in the Supreme Court would be now—
(A) 21
(B) 25
(C) 26
(D) 30
(E) 31

12. As per the reports published in the newspapers the banks, particularly public sector banks are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India ?
1. CARE
2. CRISIL
3. ULIP
(A) Only 1
(B) Only 2
(C) 1 and 2 only
(D) Only 3
(E) All 1, 2 and 3

13. As per the newspaper reports the RBI is planning to introduce ‘Plastic Currency Notes’. What is/are the benefits of ‘Plastic Notes’ ?
1. Their Shelf life will be longer.
2. It will replace plastic money or credit, debit cards which are giving birth to many fraudulent practices.
3. Printing will be cheaper.
(A) Only 3
(B) Only 2
(C) Only 1
(D) All 1, 2 and 3
(E) None of these

14. ‘Sub Prime Lending’ is a term applied to the loans made to—
(A) Those borrowers who do not have a good credit history
(B) Those who wish to take loan against the mortgage of tangible assets
(C) Those who have a good credit history and are known to bank since 10 years
(D) Those borrowers who are most preferred customers of the Bank
(E) None of these

15. As per the reports published in various journals and newspapers the ‘small borrowers’ in rural areas still prefer to take informal route for their credit needs. Which of the following is the ‘informal route’ of credit in financial sector ?
(A) Credit cards
(B) Loan against gold from financial institute
(C) Debit cards
(D) Money lender
(E) None of these

16. The Planning Commission of India has set up a 12 member committee on financial sector reforms. Who is the Chairman of the Committee ?
(A) Janki Raman
(B) Raghuram Rajan
(C) Rakesh Mohan
(D) K. V. Kamath
(E) None of these

17. Basel-II norms are associated with which of the following aspects of the banking industry ?
(A) Risk management
(B) Manpower planning
(C) Retirement benefits for the employees
(D) Corporate Governance
(E) None of these

18. What is meant by ‘Underwriting’ the term frequently used in financial sector ?
(A) Under valuation of the assets
(B) The Act of taking on a risk for a fee
(C) Giving a Guarantee that a loan will not become a bad loan
(D) The act of permission to float an IPO
(E) None of these

19. The government of India recently constituted the New Finance Commission (13th). What are its major functions ? To decide—
1. The salary structure of the employees of the Central Government.
2. The distribution of the net proceeds of taxes between states and Central Govt.
3. Rate of Income Tax and other taxes collected by the Union Govt.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these

20. Who amongst the following was the Captain of the Indian cricket team which registered its victory in tri-series ODI matches against Australia played in March 2008 ?
(A) M.S. Dhoni
(B) Anil Kumble
(C) Rahul Dravid
(D) Saurav Ganguly
(E) Sachin Tendulkar

21. Mr. Nicolas Sarkozy who was the chief guest during the Republic Day Function 2008 is the—
(A) President of Brazil
(B) Prime Minister of Brazil
(C) President of France
(D) Prime Minister of France
(E) Foreign Secretary of USA

22. Who amongst the following has taken over as the President of Serbia after the General elections held there in February 2008 ?
(A) Boris Tadic
(B) Tomislav Nicolic
(C) Samak Sundaravej
(D) Novak Djokovic
(E) None of these

23. Indra K. Nooyi who was elected as the Chairperson of the US-India Business Council is the CEO of which of the following Companies ?
(A) Pepsi Co.
(B) Infosys
(C) Tata Consultancy Services
(D) NIIT
(E) None of these

24. Maria Sharapova won the Australian Open 2008 Women’s singles by defeating—
(A) Shahar Peer
(B) Kateryna Bondarenko
(C) Sania Mirza
(D) Victoria Azarenka
(E) Ana Ivanovic

25. Saina Nehwal won the Seniors’ Championship match of which of the following games held in Goa in January 2008 ?
(A) Golf
(B) Tennis
(C) Table tennis
(D) Archery
(E) Badminton


26. As per the news published in some newspapers magazines two PSUs National Thermal Power Corporation and Coal India Ltd. are going to float a joint venture ‘SPV’. What is the full form of ‘SPV’ ?
(A) Small Power Venture
(B) Special Purpose Vehicle
(C) Special Power Venture
(D) Small Purpose Vehicle
(E) None of these

27. The Telecom Regulatory Authority of India (TRAI) recently agreed to allow foreign direct investment in the field of mobile television services. Upto what extent FDI is allowed in this field ?
(A) 50%
(B) 60%
(C) 64%
(D) 70%
(E) 74%

28. As per the performance assessment data released by the Economic Advisory Council (EAC) in January 2008. Which of the following sectors registered a growth of 3•6 per cent ?
(A) Agriculture Sector
(B) Banking Sector
(C) Tourism Sector
(D) Aviation Services Sector
(E) None of these

29. Which of the following is the name of very violent and serious types of winds which bring lot of disaster ?
(A) Trade winds
(B) Hurricane
(C) Cirrus
(D) Stratus
(E) None of these

30. The Global Employment Trends Report 2008 published by the International Labour Organization has indicated that there may be increase in global unemployment. What according to them is/are the major reasons of this possibility ?
1. Turmoil in Credit Markets all over the world.
2. Rise in oil prices in international market.
3. Civil unrest in some under and undeveloped nations.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) None of these

31. As we have noticed many banks of Indian origin are opening offices/branches in foreign countries. Why is this trend emerging at a very fast pace ?
1. These Banks wish to provide banking facilities to foreigners as banking facilities are not plenty in many foreign countries. India wants to take an advantage of the situation.
2. These banks wish to help Indian firms to acquire funds at internationally competitive rates.
3. These banks wish to promote trade and investment between India and other countries.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) Only 2 and 3

32. Many economists, bankers and researchers in India often advocate that banks should equip themselves for new challenges. These challenges are in which of the following shapes/forms ?
1. As Indian economy is getting increasingly integrated with the rest of the world the demand of the Corporate banking is likely to change in terms of size, composition of services and also the quality.
2. The growing foreign trade in India will have to be financed by the local banks.
3. Foreigners are habitual of the comforts provided by the technology. India has to do a lot in this reference.
(A) Only 1 is correct
(B) Only 2 is correct
(C) Only 3 is correct
(D) All 1, 2 and 3 are correct
(E) None of these

33. As per the reports published in the newspapers Indian Rupee is now fully accepted in Asian countries like, Singapore, Hong Kong, Malaysia etc. What does it really mean ?
1. Anybody from Asian country can purchase Indian Rupee and keep it in his/her bank account in his/her country without any restrictions.
2. Now people in these nations are not required to go for a double conversion first in dollar and then in rupee.
3. People travelling European/Asian countries can make their payments in rupee anywhere without any problem.
(A) Only 1 is correct
(B) Only 2 is correct
(C) Only 3 is correct
(D) All 1, 2 and 3 are correct
(E) None of these

34. Which of the following is not a banking/finance related term ?
(A) Credit wrap
(B) EMI
(C) Held to Maturity
(D) Exposure limit
(E) Diffusion

35. Very often we read about the Doha Ministerial Conference 2001 in reference to WTO negotiations. What were the major issues over which nations were of different opinions ?
1. Providing subsidy to agriculture.
2. Export of patented drugs/medicines by developed nations.
3. Restriction on natural movement of people from one nation to other.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 1 and 3
(E) None of these

36. The Technology Mission on Cotton was launched during Xth plan. The scheme was designed to get increase in production of cotton by which of the following levels by the end of the plan ?
(A) 100 lakh bales
(B) 150 lakh bales
(C) 175 lakh bales
(D) 200 lakh bales
(E) None of these

37. A National Development Fund was created by the Government of India a few years ago. What was the purpose of the fund ?
1. Boost investment in social sector projects to promote education, healthcare and
employment.
2. Capital investments in selected profitable PSEs to yield adequate returns.
3. To fund revision in pay structure of Central Government employees.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 1 and 2
(E) None of these

38. Olympic 2008 are scheduled to be held in—
(A) Paris
(B) Tokyo
(C) London
(D) Moscow
(E) None of these

39. The general elections took place in which of the following countries in March 2008 ?
(A) Iran
(B) Iraq
(C) Afghanistan
(D) Myanmar
(E) Sri Lanka

40. Who amongst the following is the author of the book ‘Economic Nightmare of India’ ?
(A) Morarji Desai
(B) K. Rajeshwar Rao
(C) Charan Singh
(D) Jyoti Basu
(E) None of these

41. As per the targets for 11th plan educated unemployment is to be reduced to which of the following levels ?
(A) 5%
(B) 6%
(C) 7%
(D) 8%
(E) 9%

42. ‘Long Walk’ to Freedom’ is a book written by—
(A) Sonia Gandhi
(B) L. K. Advani
(C) Nelson Mandela
(D) Benazir Bhutto
(E) Nawaz Sheriff

43. India recently signed a pact with which of the following countries on solving the problems of Indian labour in that country ?
(A) Iran
(B) UAE
(C) Malaysia
(D) Kuwait
(E) None of these

44. Which of the following countries is trying to launch a Satellite to study the sun ?
(A) USA
(B) India
(C) Russia
(D) China
(E) None of these

45. Jang Hyun Jong who was adjudged as the ‘Asian Hockey Player of the year’ is from—
(A) China
(B) Singapore
(C) South Korea
(D) India
(E) None of these

46. Who amongst the following is the winner of Padma Vibhushan Awards given away recently ?
(A) Rahul Gandhi
(B) Priya Dutt
(C) Vinod Dua
(D) Ratan Tata
(E) None of these

47. Which of the following films was adjudged ‘Best Film’ in 14th Star Screen Awards given away in January 2008 ?
(A) Om Shanti Om
(B) Guru
(C) Taare Zameen Par
(D) Jab We Met
(E) Chak De India

48. A meeting of the European Leaders was held in January 2008 at which of the following places to discuss ‘Global Economic Turmoil’ ?
(A) London
(B) New Delhi
(C) New York
(D) Tokyo
(E) Milan

49. Castro Sibling is the new President of—
(A) Romania
(B) Cuba
(C) Israel
(D) Venezuela
(E) None of these

50. Kosovo declared itself independent from which of the following countries ?
(A) Ukraine
(B) Croatia
(C) Serbia
(D) Russia
(E) None of these

Answers with Explanations :

1. (B) 2. (C) 3. (E) 4. (A) 5. (D) 6. (B)
7. (D) According to Economic Survey 2007-08, the percentage growth in bank credit is 21•5%.
8. (D) 9. (C) 10. (A) 11. (E) 12. (A)
13. (C) 14. (A) 15. (D) 16. (B) 17. (A)
18. (A) 19. (B) 20. (A) 21. (C) 22. (A)
23. (A) 24. (E) 25. (E) 26. (B) 27. (E)
28. (A) 29. (B) 30. (D) 31. (E) 32. (A)
33. (D) 34. (E) 35. (A) 36. (D) 37. (A)
38. (E) 39. (A) 40. (C) 41. (A) 42. (C)
43. (D) 44. (A) 45. (C) 46. (D) 47. (E)
48. (A) 49. (E) 50. (E)

Indian Overseas Bank (IOB) Probationary Officers P.O. Exam 2009
General English : Solved Paper
(Held on 5-4-2009)
 

Directions—(Q. 1–15) Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some of the questions.

Goldman Sachs predicted that crude oil price would hit $200 and just as it appeared that alternative renewable energy had a chance of becoming an economically viable option, the international price of oil fell by over 70%. After hitting the all-time high of $147 a barrel, a month ago, crude oil fell to less than $40 a barrel. What explains this sharp decline in the international price of oil? There has not been any major new discovery of a hitherto unknown source of oil or gas. The short answer is that the demand does not have to fall by a very sizeable quantity for the price of crude to respond as it did. In the short run, the price elasticity of demand for crude oil is very low. Conversely, in the short run, even a relatively big change in the price of oil does not immediately lower consumption. It takes months, or years, of high oil price to inculcate habits of energy conservation. World crude oil price had remained at over $60 a barrel for most of 2005-2007 without making any major dent in demand.

The long answer is more complex. The economic slowdown in the US, Europe and Asia along with dollar depreciation and commodity speculation have all had some role in the downward descent in the international price of oil. In recent years, the supply of oil has been rising but not enough to catch up with the rising demand, resulting in an almost vertical escalation in its price. The number of crude oil futures and options contracts have also increased manifold which has led to significant speculation in the oil market. In comparison, the role of the Organization of Petroleum Exporting Countries (OPEC) in fixing crude price has considerably weakened. OPEC is often accused of operating as a cartel restricting output thus keeping prices artificially high. It did succeed in setting the price of crude during the 1970s and the first half of the 80s. But, with increased futures trading and contracts, the control of crude pricing has moved from OPEC to banks and markets that deal with futures trading and contracts. It is true that most oil exporting regions of the world have remained politically unstable fuelling speculation over the price of crude. But there is little evidence that the geopolitical uncertainties in west Asia have improved to weaken the price of oil. Threatened by the downward slide of oil price, OPEC has, in fact, announced its decision to curtail output.

However most oil importers will heave a sigh of relief as they find their oil import bills decline except for those who bought options to import oil at prices higher than market prices. Exporting nations, on the other hand, will see their economic prosperity slip. Relatively low price of crude is also bad news for investments in alternative renewable energy that cannot compete with cheaper and non-renewable sources of energy.

1. Why are oil importing countries relieved ?
(A) Price of crude reached $ 147 not $ 200 as was predicted
(B) Discovery of oil reserves within their own territories
(C) Demand for crude has fallen sharply
(D) There is no need for them to invest huge amounts of money in alternative sources of energy
(E) None of these
Ans : (E)

2. Which of the following factors is responsible for rise in speculation in crude oil markets ?
1. OPEC has not been able to restrict the oil output and control prices
2. The supply of oil has been rising to match demand
3. Existence of large number of oil futures and oil contracts
(A) Only 1
(B) Both 1 & 2
(C) Only 3
(D) All 1, 2 & 3
(E) None of these
Ans : (C)

3. What does the phrase “the price elasticity of demand for crude oil is very low” imply ?
(A) When the price rises the demand for crude oil falls immediately
(B) A small change in demand will result in a sharp change in the price of crude
(C) Within a short span of time the price of crude oil has fluctuated sharply
(D) Speculation in oil does not have much of an impact on its price
(E) None of these
Ans : (E)

4. Which of the following is/are TRUE in the context of the passage ?
1. The decline in oil prices has benefited all countries
2. Renewable energy sources are costlier than non-renewable ones
3. Lack of availability of alternative renewable energy resulted in rise in demand for crude
(A) Only 2
(B) Both 1 & 2
(C) Both 2 & 3
(D) Only 3
(E) None of these
Ans : (D)

5. What has been the impact of the drop in oil prices ?
(A) Exploration for natural gas resources has risen
(B) The dollar has fallen sharply
(C) OPEC has decided to restrict its production of oil
(D) Economic depression in oil importing countries
(E) Drastic fall in demand for crude oil
Ans : (C)

6. What led to alternative energy sources being considered economically feasible ?
(A) The price of oil rose by 70 per cent while renewable energy sources are cheap
(B) Exorbitant crude oil prices made alternative energy sources an attractive option
(C) Expert predictions that the price of oil would alternately escalate and plunge sharply
(D) Evidence that no new sources of oil and gas are available
(E) None of these
Ans : (B)

7. What does the author want to convey by citing the statistic of 2005-2007 ?
(A) The prices of crude were rising gradually so people were not alarmed
(B) The dollar was a strong currency during that period
(C) Many people turned to alternative renewable energy sources because of high oil prices
(D) If the price of oil is high for a short time it does not necessarily result in a drop in consumption
(E) People did not control their demand for fuel then which created the current economic slowdown
Ans : (D)

8. Which of the following factors is not responsible for the current drop in oil prices ?
(A) Economic crisis in America, European and Asian nations
(B) Speculation in oil markets
(C) Weakening of the dollar
(D) Political stability in oil exporting countries
(E) All the above are not responsible for the current drop in oil prices
Ans : (E)

9. Which of the following is NOT TRUE in the context of the passage ?
1. OPEC was established in 1970 to protect the interests of oil importing countries
2. When demand for oil exceeds supply there is a sharp rise in price
3. Today futures trading markets set the oil prices to a large extent
(A) Only 1
(B) Only 3
(C) Both 1 & 3
(D) Only 2
(E) None of these
Ans : (D)

10. Which of the following is the function of OPEC ?
(A) Controlling speculation in oil
(B) Ensuring profits are equally distributed to all its members
(C) Monitoring inflation in oil prices and taking necessary steps to lower it
(D) Guaranteeing political instability in oil exporting countries does not impact output
(E) Determining prices of crude oil
Ans : (E)

Directions—(Q. 11–13) Choose the word which is most similar in meaning to the word printed in bold as used in the passage.

11. INCULCATE
(A) Modify
(B) Construct
(C) Initiate
(D) Fix
(E) Instill
Ans : (D)

12. FUELLING
(A) Incentive
(B) Supplying
(C) Stimulating
(D) Irritating
(E) Restoring
Ans : (C)

13. DENT
(A) Reduction
(B) Break
(C) Tear
(D) Breach
(E) Split
Ans : (A)

Directions—(Q. 14–15) Choose the word which is most opposite in meaning to the word printed in bold as used in the passage.

14. CONVERSELY
(A) Compatibly
(B) Similarly
(C) Likely
(D) Aligning
(E) Resembling
Ans : (B)

15. WEAKEN
(A) Powerful
(B) Nourish
(C) Intense
(D) Boost
(E) Energise
Ans : (D)

Directions—(Q. 16–20) Which of the phrases (A), (B), (C) and (D) given below each sentence should replace the phrase printed in bold in the sentence to make it grammatically correct ? If the sentence is correct as it is given and no correction is required, mark (E) as the answer.

16. We have hired an advertising agency to prepare a campaign to encourage people votes.
(A) People from voting
(B) Voting for people
(C) People to vote
(D) Votes by people
(E) No correction required
Ans : (C)

17. During the training programme the new recruits will be briefed about how their role in the new organisation.
(A) What their roles
(B) About their role
(C) For its roles
(D) Which are their role
(E) No correction required
Ans : (B)

18. The equipment is in such poor condition that we have no alternative to buy new ones.
(A) Many alternative like
(B) Any alternative except
(C) No other alternative
(D) No alternative but
(E) No correction required
Ans : (D)

19. Since the deadline has been changed from next week to this Thursday you should give this work priority.
(A) Be given this work priority
(B) Not give priority this work
(C) Prioritised this work
(D) Priority this work
(E) No correction required
Ans : (E)

20. After the success of our project we have been receiving more requests than we do not have the resources to handle them.
(A) Many requests but
(B) Most of the requests
(C) More requests that
(D) Too many requests
(E) No correction required
Ans : (A)

Directions—(Q. 21–25) In each question below, a sentence with four words printed in bold type is given. These are lettered as (A), (B), (C) and (D).One of these four words printed in bold may be either wrongly spelt or inappropriate in the context of the sentence. Find out the word which is wrongly spelt or inappropriate, if any. The letter of that word is your answer. If all the words printed in bold are correctly spelt and also appropriate in the context of the sentence, mark (E) i.e., ‘All correct’ as your answer.

21. The document (A) he gave me was long and complicated (B) and I struggled (C) to understand (D) it. All correct (E)
Ans : (E)

22. We shall have to await (A) and see if these measures (B) are sufficient (C) to address (D) the problem. All correct (E)
Ans : (A)

23. They are negotiating (A) to try and reach (B) an agreement which will beneficial (C) everyone concerned. (D) All correct (E)
Ans : (C)

24. The company has decided (A) to allott (B) a substantial (C) portion (D) of its profits to research and development. All correct (E)
Ans : (B)

25. It remains (A) to be seen whether (B) these reforms (C) will be acceptable (D) by the Board. All correct (E)
Ans : (D)

Directions—(Q. 26–30) Rearrange the following five sentences (1), (2), (3), (4) and (5) in the proper sequence to form a meaningful paragraph; then answer the questions given below them.
(1) For instance, if we measure the room temperature continuously and plot its graph with time on X-axis and temperature on the Y-axis,we get a continuous waveform, which is an analog signal. Analog is always continuous.
(2) The absence or presence of something can be used to plot a digital signal.
(3) An analog signal is a continuously varying signal, similar to a sinusoidal waveform.
(4) Any signal can be classified into one of the two types : analog and digital.
(5) In contrast, a digital signal takes the form of pulses,where we have something or nothing.

26. Which of the following should be the FIRST sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (D)

27. Which of the following should be the FIFTH sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (B)

28. Which of the following should be the FOURTH sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (E)

29. Which of the following should be the THIRD sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (A)

30. Which of the following should be the SECOND sentence after rearrangement ?
(A) 1
(B) 2
(C) 3
(D) 4
(E) 5
Ans : (C)

Directions—(Q. 31–40) Read each sentence to find out whether there is any grammatical error or idiomatic error in it. The error, if any, will be in one part of the sentence. The letter of that part is the answer. If there is no error, the answer is (E) (Ignore errors of punctuation, if any.)

31. He has taken care to (A) / compliance with the norms (B) / so he expects the proposal (C) / to be approved without delay. (D) No error (E)
Ans : (B)

32. Under the terms of the new deal (A) / the channel can broadcast (B) / the next cricket tournament to be (C) / played among India and Australia. (D) No error (E)
Ans : (D)

33. Our equipment gets damage (A) / very often in summer (B) / because there are (C) / frequent power cuts. (D) No error (E)
Ans : (A)

34. We have received many (A) / of the letters from customers (B) / asking us to extend (C) / the deadline to repay their loans. (D) No error (E)
Ans : (B)

35. Since I had lived there (A) / for many years the villagers (B) / were very comfortable talked (C) / to me about their problems. (D) No error (E)
Ans : (C)

36. We have been under (A) / a lot of pressure to (B) / open fifty new stores (C) / by the ending of the year. (D) No error (E)
Ans : (D)

37. The government has (A) / launched many creative schemes (B) / to make banking services (C) / available to everyone. (D) No error (E)
Ans : (E)

38. The company is in debt (A) / and has been unable (B) / to pay their employees’ salaries (C) / for the past six months. (D) No error (E)
Ans : (C)

39. This is turned out to be (A) / one of our most successful projects (B) / and we have made quite (C) / a large profit from it. (D) No error (E)
Ans : (A)

40. A non banking financial company is a (A) / financial institution similarly to a bank (B) / but it cannot issue (C) / cheque books to customers. (D) No error (E)
Ans : (B)

Directions—(Q. 41–50) In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.

On October 2, 1983 the Grameen Bank Project …(41)… the Grameen Bank. We invited the Finance Minister to be the Chief Guest at our …(42)… ceremony. But when the Ministry came to …(43)… that the ceremony would take place in a remote district, they said it would not be an …(44)… place to launch a Bank and that the ceremony should be …(45)… in Dhaka so that all the top Government Officials could …(46)… We stood firm and …(47)… to them that we did not work in urban areas so it made no …(48)… to have the ceremony in a city …(49)… we had no borrowers. We had the ceremony in a big open field with the Finance Minister present as Chief Guest. For all of us who had worked so hard to …(50)… this it was a dream come true.

41. (A) reorganised
(B) merged
(C) named
(D) converted
(E) became
Ans : (E)

42. (A) opening
(B) closing
(C) dedicated
(D) inaugurate
(E) induction
Ans : (A)

43. (A) reveal
(B) know
(C) aware
(D) inform
(E) acquaint
Ans : (B)

44. (A) excellent
(B) available
(C) inauspicious
(D) appropriate
(E) obvious
Ans : (D)

45. (A) invited
(B) assembled
(C) done
(D) shifted
(E) held
Ans : (E)

46. (A) present
(B) accompany
(C) attend
(D) involve
(E) entertain
Ans : (C)

47. (A) apologised
(B) told
(C) explained
(D) denied
(E) refused
Ans : (C)

48. (A) difference
(B) sense
(C) difficulty
(D) meaning
(E) point
Ans : (B)

49. (A) where
(B) while
(C) that
(D) however
(E) which
Ans : (A)

50. (A) obey
(B) achieve
(C) discover
(D) built
(E) perform
Ans : (B)

Indian Overseas Bank Probationary Officers Exam., 2009
General Awareness : Solved Paper
(Held on 5-4-2009)
 

1. Which one of the following is the percentage upto which FDI in defense sector is allowed ?
(A) 26%
(B) 41%
(C) 31%
(D) 49%
(E) None of these
Ans : (A)

2. Whenever RBI does some Open Market Operation Transactions, actually it wishes to regulate which of the following ?
(A) Inflation only
(B) Liquidity in economy
(C) Borrowing powers of the banks
(D) Flow of Foreign Direct Investments
(E) None of these
Ans : (C)

3. The maximum amount of the Total Revenue earned by the Govt. of India comes from—
(A) Income Tax
(B) Customs Duty
(C) Excise Duty
(D) Value Added Tax
(E) Corporate Tax
Ans : (E)

4. In economics it is generally believed that the main objective of a Public Sector Financial Company like Bank is to—
(A) Employ more and more people
(B) Maximize total profits
(C) Maximize total production
(D) Provide financial service to the people of the nation of its origin across the country
(E) Sell the goods at subsidized cost
Ans : (D)

5. Which of the following is TRUE about the ‘Single—EURO Payment Area’ a concept very much in news these days ?
1. It is a concept floated by European Union.
2. It aims to create an integrated market for payment services in EURO.
3. It is a contract to convert all US dollar payments into EURO, which is a currency almost free from fluctuations in its value.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) None of these
Ans : (D)

6. What is a Repo Rate ?
(A) It is a rate of which RBI sell Govt. securities to banks
(B) It is a rate at which RBI buys Govt. securities from banks
(C) It is a rate at which RBI allows small loans in the market
(D) It is a rate which is offered by Banks to their most valued customers or prime customers
(E) None of these
Ans : (A)

7. In a Company the use of price sensitive corporate information by the Company-people to make gains or cover losses is known as—
(A) Insider trading
(B) Future trading
(C) Foreign trading
(D) Stock trading
(E) None of these
Ans : (A)

8. As per the directives issued by the Prime Minister’s Economic Advisory Council (EAC), the percentage of the current account deficit (of the total GDP) during 2008-2009 should not be more than—
(A) 2•8%
(B) 3•0%
(C) 3•1%
(D) 3•2%
(E) None of these
Ans : (D)

9. The agricultural census is done at which of the following intervals ?
(A) There is no fixed term
(B) Every year
(C) Once in three years
(D) Once in ten years
(E) Once in five years
Ans : (E)

10. Which of the following cannot be called as a Debt Instrument as referred in financial transactions ?
(A) Certificate of Deposits
(B) Bonds
(C) Stocks
(D) Commercial Papers
(E) Loans
Ans : (C)

11. The amount of which of the following reflects the overall budgetary position of the Govt. of India at a given time ?
(A) Revenue Deficit
(B) Total Amount of Income Tax collected
(C) Capital Deficit
(D) Fiscal Deficit
(E) None of these
Ans : (D)

12. The 11th Five Year Plan is termed as plan for—
(A) India’s Health
(B) Eradication of poverty from India
(C) India’s Education
(D) Development of Rural India
(E) None of these
Ans : (C)

13. Who amongst the following gave the concept of PURA (Providing Urban facilities in Rural Areas) ?
(A) Rajiv Gandhi
(B) Manmohan Singh
(C) A.P.J. Abdul Kalam
(D) Sonia Gandhi
(E) None of these
Ans : (C)

14. The higher rate of growth of economy certainly reduces the—
(A) Gender inequalities
(B) Poverty
(C) Population of a country
(D) Flow of foreign direct investment
(E) None of these
Ans : (B)

15. Bharat Nirman does not cover which of the following areas ?
(A) Rural employment
(B) Rural Housing
(C) Rural Water supply
(D) Irrigation facilities
(E) It covers all the above areas
Ans : (A)

16. Which of the following committees has given its recommendations on ‘Financial Inclusion’ ?
(A) Rakesh Mohan Committee
(B) Rangarajan Committee
(C) Sinha Committee
(D) Kelkar Committee
(E) None of these
Ans : (B)

17. Which of the following correctly describes what sub-prime lending is ?
1. Lending to the people who cannot return the loans.
2. Lending to the people who are high value customers of the banks.
3. Lending to those who are not a regular customer of a bank.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
Ans : (A)

18. Which of the following is/are the major concepts visible in today’s banking industry in India ?
1. Risk Based Management
2. Growing competition
3. IT Initiatives
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 2 and 3
(E) All 1, 2 and 3
Ans : (A)

19. Which of the following services provided by a bank in India is not liable for Service Tax as per existing laws ?
(A) Safe Deposit Lockers
(B) Merchant Banking Services
(C) Credit cards
(D) Discount earned on certain discounted bills
(E) None of these
Ans : (D)

20. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as—
(A) Probability risk
(B) Market risk
(C) Inflation risk
(D) Credit risk
(E) None of these
Ans : (B)

21. In India Minimum Support Prices are announced by the Govt. of India every year. Which of the following commodities is not covered under this policy ?
(A) Sugar
(B) Wheat
(C) Cotton
(D) White goods
(E) All are covered under the policy
Ans : (D)

22. Which of the following policies of a country brings a crucial impact on the economic growth of the nation ?
1. Fiscal policy
2. Foreign policy
3. Social policies
(A) Only 1
(B) Only 2
(C) Only 1 and 2
(D) Only 2 and 3
(E) All 1, 2 and 3
Ans : (C)

23. Which of the following financial products is not much popular in India as they are launched recently only ?
(A) Development Bonds
(B) Insurance Policies
(C) Mutual funds
(D) Sovereign Wealth Funds
(E) All are very popular products in India
Ans : (D)

24. Which of the following countries is given permanent membership of the World Trade Organisation recently ?
(A) Ukrain
(B) India
(C) Pakistan
(D) Sri Lanka
(E) None of these
Ans : (E)

25. When the prices of commodities, goods and services start declining consistently, the phenomenon is known as—
(A) Discount yield
(B) Deflation
(C) Negative growth
(D) Market capitalization
(E) None of these
Ans : (B)

26. Which of the following products launched by most of the banks help farmers in getting instant credit for various agicultural purposes ?
(A) Kissan Credit Card
(B) Personal Loan
(C) Business Loan
(D) ATM Card
(E) None of these
Ans : (A)

27. Which of the following policies of the financial sectors is basically designed to transferring local financial assets into foreign financial asset freely and at market determined exchange rates ? Policy of—
(A) Capital Account convertibility
(B) Financial Deficit Management
(C) Minimum Support Price
(D) Restrictive Trade Practices
(E) None of these
Ans : (A)

28. A customer wishes to purchase some US dollars in India. He/ She should go to—
(A) Public Debt Division of the RBI only
(B) American Express Bank Only
(C) RBI or any branch of a bank which is authorized for such business
(D) Ministry of Foreign Affairs
(E) None of these
Ans : (C)

29. India’s Look East Policy was launched in the year—
(A) 1990
(B) 1992
(C) 1995
(D) 2000
(E) None of these
Ans : (B)

30. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign nation ?
(A) Personal Loan
(B) Corporate Loan
(C) Educational Loan
(D) Mortgage Loan
(E) None of these
Ans : (C)

31. A Bank/Financial Organization these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced organization’s security awareness manual. This step of the organization can be classified under which one of the following categories of measures for a business ?
(A) Preventive
(B) Compliance
(C) Corrective
(D) Detective
(E) None of these
Ans : (B)

32. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank ?
1. It does not accept deposits.
2. It has a limited cash disbursement capacity.
3. Lack of human interface
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these are limitations
Ans : (B)

33. Which of the following is/are the objectives of developing Special Economic Zones (SEZs) ?
1. Generate additional economic activities.
2. Generate additional employment opportunities.
3. Promotion of export of goods and services.
(A) Only 1
(B) Only 2
(C) Only 3
(D) Only 1 and 2
(E) All 1, 2 and 3
Ans : (E)

34. An industry which is fighting hard to increase its market share in existing market (with new popular products) is known as—
(A) Market vendor
(B) Market operator
(C) Market leader
(D) Market follower
(E) Market challenger
Ans : (D)

35. Maruti view Tata Motors as prominent competitor but does not view Volvo as a competitor. This type of competition in the market is known as—
(A) Product competition
(B) Production flow competition
(C) Cost Control competition
(D) Service competition
(E) None of these
Ans : (C)

36. Which of the following is not a social assistance programme launched by the Govt. of India ?
(A) National Old Age Pension Scheme
(B) Annapurna Scheme
(C) National Family Benefit Scheme
(D) Indira Awaas Yojana
(E) All are social assistance programmes
Ans : (D)

37. What is the Statutory Liquidity Ratio (SLR) at present ?
(A) 14%
(B) 18%
(C) 20%
(D) 24%
(E) None of these
Ans : (D)

38. Mr. Raman Singh has taken over as the Chief Minister of which of the following States after a General Election in November/December 2008 ?
(A) Jammu & Kashmir
(B) Madhya Pradesh
(C) Delhi
(D) Chhattisgarh
(E) None of these
Ans : (D)

39. The World Development Report- 2009 is released a few months earlier, by which of the following Organisations ?
(A) UNESCO
(B) ADB
(C) IMF
(D) WTO
(E) World Bank
Ans : (E)

40. As per news published in newspapers, how much money Govt. of India has decided to invest in Infrastructure Sector as an initiative ? About—
(A) Rs. 30,000 crores
(B) Rs. 40,000 crores
(C) Rs. 50,000 crores
(D) Rs. 60,000 crores
(E) Rs. 70,000 crores
Ans : (E)

41. Mr. Hosni Mubarak who is the recipient of the Jawaharlal Nehru Award for International Understanding recently is the—
(A) President of South Africa
(B) Prime Minister of South Africa
(C) President of Egypt
(D) Prime Minister of Egypt
(E) Secretary General of UNO
Ans : (C)

42. Mr. Paul Krugman whose name was in news recently is a famous—
(A) Medical Scientist
(B) Economist
(C) Author
(D) Astrophysicist
(E) Sports Personality
Ans : (B)

43. The Buckingham Canal which is declared a National Waterway of India recently is a Canal running from—
(A) Punjab to Haryana
(B) Mumbai to Goa
(C) Vijayawada Villupuram
(D) Cochin to Kozhikode
(E) Kanyakumari to Rameshwaram
Ans : (C)

44. Many times we see in newspapers that some projects are launched by the Govt. Authorities on ‘PPP’ basis. What is the full form of ‘PPP’ ?
(A) Preferential Payment Plan
(B) Public Private Partnership
(C) Partial Payment Project
(D) Popular Private Project
(E) Public Private Plan
Ans : (B)

45. Which of the following countries is not the member of Asia Pacific Economic Cooperation (APEC) which was in news recently ?
(A) South Korea
(B) Canada
(C) China
(D) India
(E) U.S.A.
Ans : (D)

46. The compulsory Education Act will ensure education to the children upto the age of—
(A) 10 years
(B) 12 years
(C) 8 years
(D) 6 years
(E) None of these
Ans : (E)

47. Saniya Mirza and Mahesh Bhupati won which of the following titles recently ?
(A) Australia Open
(B) U.S. Open
(C) Wimbledon Finals
(D) Davis Cup Finals
(E) None of these
Ans : (A)

48. Mr. Kunwar Narayan who was selected for the Jnanpith Award (for 2005) recently is a famous poet and writer in—
(A) Urdu
(B) English
(C) Gujarathi
(D) Punjabi
(E) Hindi
Ans : (E)

49. Which of the following countries is planning to launch its Moon Mission Space Vehicle named as Moon-LITE ?
(A) Pakistan
(B) Germany
(C) Russia
(D) France
(E) Britain
Ans : (E)

50. Which of the following books is written by Mr. Nandan Nilekani ?
(A) Imagining India
(B) A Good Woman
(C) Between the Assassinations
(D) The White Tiger
(E) None of three
Ans : (A)