Q.1.

The following does not represent a market situation: (A) A bank run dispensary located in its staff quarters (B) A fund raising chairity show for the members of an NGO (C) A meditation camp of a religious organisation conducted for its members (D) A stall distributing kada prasad in a gurudwara. (E) None of these Ans-(D) Q.2. The markets are grouped into different types based on the geographical area, location of market palace , product,nature of transaction, and volume of the transaction : In the above statement the following is not correct: (A) Nature of transaction (B) Geographical area (C) Location of marketplace (D) Volume of transaction (E) None of these Ans-(C) Q.3. The following offering is not a service : (A) Fixed deposit receipt (B) Postage stamp (C) Gift coupon of a chain store (D) Insurance Policy Ans-(C) Q.4. The act of obtaining a desired object from someone by offering something in return is called as a (n).... (A) Transaction (B) Exchange (C) Relationship (D) Value Ans-(B) Q.5. Economists use the term......to refer to a collection of buyers and sellers who transact in a particular product class : (A) Customer (B) Market (C) Experience (D) None of these Ans-(B). Q.6. Out of the items mentioned below,......is not a product: (A) Lecture by Shri Sudhansu Maharaj (B) Simla (C) Visit to Bank's London office (D) None of these Ans-(C) Q.7. A product line is a group of related products that function in a similar manner, are sold to the same customer groups, and marketed through the same type of outlets : (A) Group (B) Line (C) Category (D) Market Ans- (B) Q.8. Goods that are typically bought by a consumer based on a comparison of suitability, quality, price,and style are called.....goods: (A) Industrial (B) Speciality (C) Shopping (D) Convenience Ans-(C) Q.9. Out of the following,.....is not one of the three levels of a product : (A) Core (B) Augmented (C) Actual (D) Fragmented Ans-(D) Q.10. Out of the following,.....is not an objective of pricing : (A) Profit

(B) Stabilising demand and sales of the product (C) Improvement in product quality (D) Expansion of business Ans-(D). Q.11. Abank has a special product for senior citizens which provides cheque book on saving account with customer name on chaque book, free of cost debit card with over draft facility of rs 15,000, a special pouch for holding passbook, cheque book and debit card, facility for withdrawal and deposites at any branch of the bank,free of cost remittances to any branch of the bank, and free of cost remittances to any branch of another bank covered under RTGS facility. Which of the following is the core product in this offering ? (A) Overdraft (B) Remittances (C) Saving account (D) None of these Ans : (C). Q.12. Of the following pricing methods,......is not based on competitors pricing : (A) English Auction (B) Sealed--Bid Auction (C) Group Pricing (D) None of these Ans : (C) Q.13. Of the following pricing strategies,......is not ideal for new products : (A) Market-Skimming (B) Discriminatory Pricing (C)Promotional Pricing (D) None of these Ans: (B) Q.14.A...discount is offered by the seller to intermediary who performs functionslike selling, storing and record keeping :

(A) Quantity (B) Trade (C) Cash (D) Seasonal Ans : (B) Q.15. In market skimming pricing strategy : (A) Initially price is lower and then it is increased (B) Initially price is higher and then it is reduced (C) Intial price is high and is maintained high (D) None of these Ans : (B) Q.16. Bank of Mathura is offering 1% higher interest rate on fixed diposite to senior citizens of 60 years and above. It is practising...... : (A) Promotional pricing (B) Psychological pricing (C) Segmental pricing (D) Product mix pricing Ans : (C) Q.17. with....pricing, the products are priced below list price (or even below cost)for a temporary period to create buying urgency : (A) Reference (B) By-product (C) Promotional (D) Market penetration Ans : (C) Q.18. Of the following pricing methods,....is not cost-based method. (A) Value pricing

(B) Target-return pricing (C) Mark-up Pricing (D) Marginal cost pricing Ans : (A).

1. A prospect means a) any customer who walks into the bank b) an employee of the bank c) a customer who is likely to be interested in bank's product or service d) a depositor of the bank' e) a borrower of the bank 2. A lead means a) a prospect who is more likely to avail of the Bank's product b) a political leader c) a religious leader d) a bank chairman e) None of these 3. Innovation means a) Compensation b) inspiration c) additional perquisites d) implementing new ideas or new methods e) None of these 4. A Call means a) calling on friends b) calling on bank employees c) calling on prospective customers d) to make telephone calls e) calling on relatives 5. The Traditional Marketing style involves a) Telemarketing b) Digital Marketing c) Indirect Marketing d) Direct Marketing e) All of these 6. Modern Method of Marketing include a) Publicity on the net b) Advertisement on the net c) Soliciting business through e-mails d) Tele marketing e) All of these 7. A true marketing requires a) Command and other mindset b) Control Mindset c) Passive mindset d) Active mindset

e) None of these 8. Which of the following sentences is true? a) Marketing is not required in a Buyers' Market b) Marketing is not required in a Sellers's market c) Marketing is not required due to competition d) Marketing is not required due to liberalization e) Marketing is not required due to globalisation 9. For effective marketing the salesmen should have which of these qualities? a) Creativity b) Team spirit c) Motivation d) Effective communication skills e) All of these 10. Market information means a) Knowledge of shops and bazaars b) Knowledge of shopping malls c) Knowledge of customer profile and product mix d) knowledge of various languages e) None of these 11. Market Research is needed for a) checking the market area b) checking the right product to be sold c) making proper marketing decisions d) deciding right time to sell e) All of these 12. Which of the following statement is true a) Marketing makes the company to go into loss due to higher expenses b) Marketing is not required in profit making companies c) Marketing sharpens the minds of the employees d) Marketing is a time bound seasonal function e) Marketing is a waste of time 13. Marketing plan helps in a) better lead generation b) better systems c) better results d) improved balance sheet e) better customer service 14. If Marketing is done effectively which of the following is not required? a) Advertisement b) Publicity c) Market Research d) Market Segmentation e) None of these 15. Motivation means a) Inspiring employees to perform better b) Better communication skills c) Sales Coaching d) Market Research e) None of these 16. In a Selling Process in today's world? a) Only standard products are sold b) No customization required c) the seller need not have product knowledge d) the seller should aim at customer satisfaction

e) only quantum of sales matters 17. Find the true statement a) Marketing is a waste of the employees' time b) Marketing is not required in India due to its vast population c) Marketing involves additional work d) Marketing involves team work e) Marketing is not required today due to IT advancement 18. A Target market is a) entire country b) entire city c) entire globe d) that which consists of customers who need the identified product e) all of these 19. Sales forecasting involves a) Sales Planning b) Sales Pricing c) Distribution Channels d) Consumer tastes e) All of these 20. Which of the following product is being sold under the brand name ZODIAC a) Shirts b) Ties c) Both A and B d) Liberty 21. SWIFT - cars are being manufactured by a) DCM b) Maruti c) Premier Automobiles d) Hyundai 22. With you all the way is the slogan of a) Vodafone b) SBI c) ICICI d) Raymonds 23. Which company used the slogan "The complete Man" a) DCM b) GRASIM c) RAYMONDS d) VIMAL 24. Which brand uses the slogan "Made for each other" for its cigarettes? a) Cavenders b) Four Square c) Red & White d) Wills 25. Cross Selling means a) Identifying customer needs b) matching the products to customer needs c) convincing the customers of product benefits d) responding to questions and objections of customers e) all of these ANSWERS

1 (c)

2 (a)

3 (d)

4 ( c)

5 (d)

6 (e) 11 (e) 16 (d) 21 (b)

7 (d) 12 (c) 17 (d) 22 (b)

8 (b) 13 ( c) 18 (d) 23 (c)

9 (e) 14 (b) 19 (e) 24 (d)

10 (c ) 15 (a) 20 (c) 25 (e)

1. When did Regional Rural Banks start functioning in India? (A) 1975 (B) 1947 (C) 1956 (D) 1960 2. Who was the Chairman of the Sixth Central Pay Commission? (A) Justice B. N. Srikrishna (B) Prof. Ravindra Dholakia (C) J. S. Mathur (D) Sushma Nath 3. The 11th Five Year Plan is termed as plan for. (A) Indias Health (B) Eradication of poverty from India (C) Indias Education (D) Development of Rural India 4. Which of the following correctly describes what sub-prime lending is? (1) Lending to the people with less than ideal credit status. (2) Lending to the people who are high value customers of the banks. (3) Lending to those who are not a regular customer (A) Only 1 (B) Only 2 (C) Only 3 (D) All 5. 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 6. 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 7. The World Development Report 2009 is released by which of the following Organisations? (A) UNESCO (B) ADB (C) IMF (D) World Bank

8. Which of the following statements is/are TRUE about the Lehman Brothers Holdings Inc. which was in news sometimes back? (1) The US government provided a US$ 7000 million bailout package to the company. (2) The company filed for bankruptcy in a court in New York. (3) The company is now out of financial crisis and is busy in its restructuring so that it can start afresh. (A) Only (1) (B) Only (2) (C) Only (3) (D) All 9. The Reserve Bank of India has recently issued guidelines to banks on Pillar 2 of Basel II framework. Pillar 2 deals with which of the following? (1) Better human resource management (2) Adequate capital to support risks (3) Better profitability with minimum number of employees (A) Only (1) (B) Only (2) (C) Only (3) (D) None of these 10.The World Investment Report 2008 was released in September 20This report is published every year by: (A) Government of India (B) World Trade Organisation (WTO) (C) Asian Development Bank (ADB) (D) United Nations Conference on Trade and Development (UNCTAD) 11. As we all know some new initiatives were introduced in the area of Fiscal Management by the government of India. Which of the following acts was passed a few years back to keep a check on the fiscal indiscipline on macroeconomic parameters? (A) FERA (B) FRBMA (C) FEMA (D) Public Debt Act 12. Which of the following has the sole right of issuing paper notes in India? (A) Union Government (B) Reserve Bank of India (C) Ministry of Finance (D) Supreme Court 13. Decision taken at Bretton Woods Conference led to the formation of (A) IDA (B) IMF (C) ADB (D) IFC 14. Which of the following is known as plastic money? (A) bearer cheques (B) credit cards (C) demand drafts (D) gift cheques 15. Euro is the currency of European Union. When did it come into being? (A) 1999 (B) 1995 (C) 2000 (D) 2001 16. Which is the largest commercial bank in India? (A) Reserve Bank of India (B) State Bank of India

(C) ICICI Bank (D) Bank of India 17. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form (A) Reserve Bank of India (B) Imperial Bank of India (C) Bank of India (D) Union Bank of India 18.In India, income tax is levied by (A) Union Government (B) State Governments (C) Ministry of Finance (D) RBI 19. The Reserve Bank of India was nationalized in? (A) 1947 (B) 1948 (C) 1950 (D) 1956 20. What is a Bank which has capital and reserves of over Rs. 5 lakhs called? (A) National Bank (B) Cooperative Bank (C) Scheduled Bank (D) Unscheduled Bank

Business Glossary (Important for Bank PO)

Accounting period:
The period of time covered by business, financial and management accounts. Financial accounts are generally prepared once or twice in twelve calendar months, but the interval of management accounts must be much shorter in order to ensure adequate management control over the regular operations.

Annual Depreciation:
The reduction in book value of an asset at a certain percentage rate per annum. Appreciation: An increase in the value of an asset over its purchase price or book value.

Asset:
Any business resource both tangible and intangible acquired at monetary cost and which is expected to be of benefit to the business for a period of time, such as buildings, machinery, etc. Intangibles include goodwill etc. Any resource of a deceased or insolvent person from which claims may be met.

Bad Debt:
A debt which is irrecoverable and is therefore written off as a loss in the accounts of a company/bank etc.

Balance sheet:
Statement of the financial position of a company on a particular date, showing the nature and amount of a company's assets and liabilities on a particular date, usually the end of the accounting year. The assets include fixed assets, investment, current assets (which include Inventories, sundry debtors, cash and bank balances) and loans and advances. The liabilities include shareholders' fund (equity capital plus reserves). Loan funds (secured and unsecured loans) and current liabilities and provisions. The assets and liabilities must balance.

Blank cheque:
A cheque which has been signed and dated but in which the amount payable has not been filled in. This is left for the payee to insert.

Break Even Point:

That level of activity of a business at which neither profit nor loss is incurred, total costs equating with total revenue. Also called break-even performance.

Brokerage:
The payment charged by brokers for their services in arranging a contract. It is usually expressed as a percentage of the monetary value of the contract.

Bullion:
Gold and silver, usually in bar form, which is regarded as a commercial commodity at recognised degrees of purity.

Capital:
All resources which have been produced by mankind and which themselves are used in the process of production. Capital is thus different from land, since this is a natural rather than a man made resource. The total resources of a person or business. The sum of money subscribed by the members of a company, by partners or by an individual when starting a company.

Central Bank:
A bank, usually state owned whose operations are directed by the government as an instrument of financial policy. Typical functions of a central bank include acting as banker to the state and the commercial banks, controlling the note issue and managing the state's currency and credit policies. The German Bundesbank and the American Federal Reserve are the most autonomous of all central banks in the world. RBI will surely count amongst the least autonomous ones. Autonomy of the central bank reduces government extravagancea and minimises political interference.

Cheque:
A written order to banker authorising him to pay a specified sum of money to a person named in the order, to his order or to bearer from funds deposited with the banker.

Consumer Durables:
Solid items bought by the general public for use in the house. These may include washing machines, cookers and refrigerators, which are likely to be in use for several years.

Consumer Goods:
Commodities or services consumed directly to satisfy a want rather than one used to produce something else. For Example: Soft drinks etc. Capital goods (like machineries), on the other hand, are used to generate some other goods.

Credit Rating:
The amount which is credit agency states a borrower is capable of repaying. Credit Rating can be done for stocks, bonds or nations themselves. Some global credit rating agencies are Standard and Poor's (S & P), Moody's etc. CRISIL is the Indian agency rating bonds etc. CRISIL or Credit Rating Information Services of India Limited: Jointly sponsored by the UTI and the Industrial Credit and Investment Corporation of India (ICICI), CRISIL has been functioning since January 1988. It rates the safety and timely payment of interest on debt securities like debentures and fixed deposits of public and private sector companies. The rating, subjected to periodic review, is given in alphabetical symbols preceded by d for Debentures and F for Fixed Safety, an adequate safety, B inadequate safety, C high risk, D default.

Debentures:
An instrument of debt, called bond in the US. A debenture holder is a creditor to the company who loans funds for a period of 7-10 years against a fixed rate of interest. After the stipulated loan period the debentures are redeemed, i.e., the loan is paid back, sometimes with a very small premium. Debentures are generally secured against the company's assets. Convertible debentures can be either fully or partly converted into a certain number of shares, usually at a premium, after a stated period of time. Convertible debentures may carry a lower rate of interest than non convertible debentures investment; there is little risk but also little prospect of appreciation.

Debt-Equity Ratio:
Also called financial Leverage ratio in the US. There are three methods of calculating this ratio, the last being more common: 1. The total liabilities of a company divided by the shareholders' equity 2. The total long term debt divided by shareholders' equity

3. The total long term debt plus the par value of preference shares divided by the par value of equity shares. All the three ratios measure a company's solvency.

Depreciation:
1. The reduction in the value of an asset through wear and tear, obsolescence, etc. 2. An accounting device by means of which the value of an asset is converted into an expense for each of the accounting periods during which the asset is expected to contribute value.

Disinflation:
The process or policy of removing pressures on the economy which are forcing prices upwards and the real value of the monetary unit downwards. Pressure may be removed by curtailing expenditure through credit restrictions and a dear money policy, and by taxation.

Deficit:
An excess of liabilities over assets or of expenditure over revenue.

Disinvestment:
Especially in the Indian context, it refers to the process of offloading of shares in a firm by a party. The government of India has partially disinvested its holding in several Public Sector undertaking (PSUs) with the ultimate aim of privatising them to increase accountability and productivity.

Elasticity of Demand:
A measurement of economics of the degree of response of a change in one factor to a change in a related factor, expressed in a price demand, price supply or demand income relationships.

Floating Capital:
Funds available for carrying on a business, including funds employed in marketable investments.

Foreign Exchange:
The process of trading one currency for another. This takes place on the international exchange markets where trading sets the exchange rates of currencies. Foreign currency is required by individuals, business and governments to finance the purchase of goods and services and to make loans to other countries.

Free Market Economy:

An economic system where the government does not interfere in any way in business activity.

Golden Handshake:
Compensation paid to an executive of a company on his displacement and especially on his retirement.

Gross Domestic Product:

The value of goods and services produced in an economy. The value may be measured by aggregating market values of goods and services or by aggregating incomes from employment, profits, dividends, etc. (i.e., factor cost, which is equivalent to market values less purchase tax plus subsidies). It is equivalent to gross national product less the value of net property abroad.

Gross National Product:

The total monetary value of all the goods and services produced by a country in a year, expressed either at factor cost or at market prices.

Inflation:
The rate at which prices grow in an economy. Thus, reduced rate of inflation would mean that the rate at which prices will rise has slowed down, but not that the prices will fall.

Liquid Assets:
Assets that can be converted into cash comparatively quickly. They are widely regarded as comprising shares, short term bills of exchange, bank deposits and cash itself.

Lay off:
The temporary dismissal of a worker because there is no work to be done. Merchandise: Goods which are offered for sale.

National Income:
The sum of the value of goods and services available to an economy through its economic activity in a given time period. The income many be evaluated: 1. by adding the incomes generated by economic activity, e.g., wages, salaries, dividends, profits and net income from abroad; 2. by adding the prices of goods and services, less indirect taxes plus subsidies, together with government expenditure. Both methods produce similar total and the movement in the total is indicative of economic

progress over time, once allowance is made for price inflation, population growth, etc. Growth of national income need not be synonymous with improvement in living standards

Real Interest Rate:

Current interest rate less the rate of inflation; of relevance in decision regarding long term fixed interest securities. Since most current interest is taxed, the post tax interest is likely to fall below double digit inflation rates, which means a steady erosion of capital. Redemption: Buying back a loan instrument by paying off the lender. In the case of debentures or preference shares redemption means paying back the investor, either in cash, or through equity shares.

Sensex:
it is the sensitive index of the Bombay Stock Exchange. It reflects the weighted average price of 30 most volatile A Group shares on the BSE. Widely criticised to be an unrepresentative but highly influential index.

Yield:
The actual rate of return received or obtainable from an investment, generally as the annual income calculated as a percentage of the purchase price of the investment. The rate of return for a capital investment project which equates the net capital expenditure with the discounted value of futures net cash inflows. The output of a process.

1. The International Bank for Reconstruction and Development (IBRD) is better known as (A) World Bank (B) Asian Development Bank (C) IMF (D) It is known by its name 2. When was the Reserve Bank of India established? (A) 1935 (B) 1920 (C) 1928 (D) 1947 3. Which is the largest commercial bank in India? (A) Reserve Bank of India (B) State Bank of India (C) ICICI Bank (D) Bank of India 4. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form

(A) Reserve Bank of India (B) Imperial Bank of India (C) Bank of India (D) Union Bank of India 5. Which sister organization of the World Bank helps private activity in developing countries by financing projects with long-term capital in the form of equity and loans? (A) Asian Development Bank (B) IMF (C) International Developmental Association (D) International Finance Corporation

6. Which sister organization of the World Bank provides long term loans at zero interest to the poorest developing countries? (A) Asian Development Bank (B) IMF (C) International Developmental Association (D) International Finance Corporation 7. Who is known as the Father of Economics? (A) Adam Smith (B) Chanakya (C) Machiavelli (D) None of these 8. Which was the first Indian Bank to introduce credit card? (A) State Bank of India (B) Central Bank of India (C) Union Bank of India

(D) ICICI 9. What does devaluation of a currency mean? (A) decrease in the internal value of money (B) decrease in the external value of money (C) decrease both in the external and internal values of money (D) none of these 10.Which of the following is known as plastic money? (A) bearer cheques (B) credit cards (C) demand drafts (D) gift cheques 11. Which of the following statements best describes the concept of involvement in the context of buyer behaviour? (A) The length of time involved in the buying process (B) The potential impact of a product on an individual's self-identity (C) The number of people involved in the decision-making unit (D) The complexity of an order 12. Buying decisions generally follow a pattern of overlapping stages. Which of the following best describes the typical stages of the buying process? (A) Need recognition > Information search > Evaluation > Decision > Post purchase evaluation (B) Need recognition > Evaluation > Information search > Decision > Post purchase evaluation (C) Information search > Need recognition > Evaluation > Decision > Post purchase evaluation (D) Need recognition > Information search > Decision > Evaluation > Post purchase evaluation 13. Needs differ from wants because: (A) Wants are a socialized manifestation of underlying needs (B) Needs are a socialized manifest Needs are historical; wants are about the futuretation of underlying wants

(C) Needs are historical; wants are about the future (D) Needs and wants are exactly the same 14. Which of the following levels of Maslow's Hierarchy of Needs is most likely to be associated with consumers' purchase of goods which appeal to their inner sense of peace of mind (e.g. art classes)? (A) Self-actualization (B) Love (C) Security (D) Physiological 15. An individual is considering buying a new microwave cooker and is faced with the possibility of several models. Which of the following describes the widest range of microwave cookers, which the buyer considers in some form? (A) The choice set (B) The awareness set (C) The total set (D) The pre-evaluation set 16. A company uses The Coors to endorse its range of snack foods. This endorsement is likely to be particularly effective if the Coors are seen by Large numbers of the company's target market as: (A) A primary reference group. (B) A tertiary reference group. (C) A secondary reference group. (D) A non-reference group. 17. Which of the following consumer responses is LEAST likely to overcome cognitive dissonance experienced by a consumer who is dissatisfied with their purchase? (A) Rationalizing to ourselves that a product is actually quite good (B) Seeing the product in a different light so that we emphasize the bad aspects of a product (C) Seeing the product in a different light so that we emphasize the good aspects of a product (D) Complaining and returning goods to the supplier 18.Which of the following labels is NOT associated with a role in a buying Decision Making Unit?

(A) Supplier (B) Gatekeeper (C) Decision maker (D) User 19. A secretary who answers calls for a company buyer may be taking on which role within the company's decision-making unit? (A) User (B) Influencer (C) Gatekeeper (D) Buyer 20. Which of the following is NOT an element of a Marketing Information System? (A) Marketing research (B) Decision support system (C) Production monitoring system (D) None of these