PSC Chief General Manager Model Questions and Answers

76. EFT stands for
(A) Easy Fund transfer (B) Maintenance fund transfer
(C) Paperless Banking (D) Electronic Funds Transfer
Answer: D

77. …………. act as a consortium leader of the banking institutions in the district
(A) Lead Bank (B) Social Banking
(C) Core Banking (D) District Co-operative Bank
Answer: A

78. Cheque in circulation for more than six months from the date of the cheque is a
(A) Post dated cheque (B) Anti dated cheque
(C) Stale cheque (D) Bearer cheque
Answer: C

79. …………… means signing on the back of a negotiable instrument with a view to transfer the the title of the instrument to another person
(A) Underwriting (B) Document
(C) Instrument (D) Endorsement
Answer: D

80. RTGS has been implemented in India w.e.f.
(A) 26 March 2004 (B) 13 May 2004
(C) 26April 2005 (D) 13 January2003
Answer: A

81. First stock exchange in India is
(A) NSC
(B) BSC
(C) Cochin Stock Exchange
(D) Ahmadabad Stock Exchange
Answer: Question Cancelled

82. Blue chip shares means
(A) Those shares which are listed in the stock exchange
(B) Those shares whose guarantee is given by Government
(C) Those shares on whom dividend is paid at higher rate regularly
(D) Those shares which are issued at first time
Answer: C

83. Days of grace are allowed to
(A) Demand Bill (B) Cheque
(C) Time Bill (D) Promissory Note
Answer: C

84. In India 14 commercial Banks were nationalized in the year
(A) 1955 (B) 1969
(C) 1972 (D) 1980
Answer: B

85. Crossing of the cheque can be made by
(A) Drawer only (B) Banker only
(C) Any holder (D) None of these
Answer: C

86. Accounting principles are acceptable when they, in general, satisfy the basic norms
(A) Usefulness and Objectivity
(B) Objectivity and feasibility
(C) Usefulness, Objectivity and Feasibility
(D) Usefulness, Objectivity, Feasibility and Obligatory
Answer: C

87. The term ‘playing safe’ relate to
(A) Convention of conservatism
(B) Convention of materiality
(C) Realization concept
(D) Going concern concept
Answer: A

88. Which of the following method does not consider as a Method of Depreciation?
(A) Double Declining Balance Method
(B) Mileage Method
(C) Service Hours Method
(D) Striking Product Method
Answer: D

89. According to Rolland, Trail balance is defined as “the final list of balances, ……………”
(A) adjusted and totalled
(B) totalled in a column form
(C) totalled and combined
(D) totalled and accumulated
Answer: C

90. The case Gurner V/s Murray relate to
(A) Admission of a partner (B) Retirement of a partner
(C) Death of a partner (D) Insolvency of a partner
Answer: D

91. The term ‘credit’ derived from the Latin word
(A) Credre (B) Creditum
(C) Creditmn (D) Croditum
Answer: A

92. Mr.A, Mr.B are partners. Their old profit sharing ratio was 3:1. Mr. A surrendered 1/32 of his share and Mr. B surrendered 3/32 of his share in favor of Mr.C. Calculate Sacrificing ratio of A & B.
(A) 3/128:3/128 (B) 93/128:29/128
(C) 3/128:5/128 (D) 5/128:3/128
Answer: A

93. As per section 128 of the Companies Act, managerial remuneration is
(A) 11 % of Net Profit
(B) 5 % of Net Profit
(C) 10% of Net Profit
(D) 4 % of Net Profit
Answer: A

94. Green Limited had total purchases of Rs. 80,000 during the year. The opening and closing balance of creditors were Rs.20,000 and 30,000 respectively. Payments made to creditors during the year were Rs 60,000. Discount received was Rs 2,000. The credit purchases during the year …………..
(A) 82,000 (B) 72,000
(C) 86,200 (D) 86,400
Answer: B

95. The RBI appointed a committee under the chairmanship of K.B Chore in April …………. to review the working of cash credit system.
(A) 1981 (B) 1979
(C) 1982 (D) 1974
Answer: B

96. Irrelevance theory of capital structure, assumptions does not include
(A) No corporate tax
(B) Cost of debt is constant
(C) Cost of debt is lower than cost of equity
(D) None of these
Answer: D

97. A company expects a net income of Rs 80,000. It has Rs 2,00,000 debentures of 8% rate of interest. The equity capitalization rate of the company is 10 %. Compute overall capitalization rate according to Net Income Approach, ignoring income tax.
(A) 9 % (B) 8.3%
(C) 8.52% (D) 9.52%
Answer: D

98. A ‘Yen note’ floated in Germany is an example of
(A) Euro bond (B) Yen bond
(C) Floating rate yen bond (D) Euro commercial paper
Answer: A

99. Research and Development expenditure is an example of
(A) Capital expenditure (B) Revenue expenditure
(C) Deferred revenue expenditure (D) None of these
Answer: C

100. Section …………. for buy back of shares as per Companies Act 1956
(A) 78 (B) 79
(C) 77 (D) 81
Answer: C