Practice Static GA Questions and Answers

• An annuity due is an annuity in which the periodic payments are made at the beginning of each payments interval.
• The future value of a general annuity due is greater than the future value of the corresponding ordinary general annuity by the interest on it for one paym...
• The perpetuity payment is the interest earned by the present value of the perpetuity in one interest period. 
• NPV and IRR, both methods, ignore periodic depreciation charges on investment proposals.
• PayBack Period takes into account cash flows beyond the payback period. 
• In ARR method the decision is to accept the project if ARR is more than the minimum expected rate of return
• Profitability Index (PI) overcomes the shortcoming of NPV in which the absolute amount is considered.
• In case of mutually exclusive projects and when NPV and IRR giving conflicting results, go for the project having higher IRR
• Money multiplier measures an estimate of the maximum amount of commercial bank money that can be created
• Interbank deposit (deposit of one bank with the other) is taken into account in money multiplier
• District Credit Plan is prepared by the Lead District Manager (LDM) of the NABARD 
• Priority Sector Lending Certificates (PSLCs) incentivises the seller bank for over-achievement of the PSL targets
• The Future Value of an Annuity is equal to the future value of the sum of individual cash flows.
• A loan is categorised as NPA when its interest or principal repayment become overdue for more than 180 days 
• Where is the Head Office of Krishna Bhima Samrudhi LAB situated?
• What is the Number of RRBs functional now?
• Total number of bank branches in India is about?
• In early 1990s banking system was struggling with large NPAs. Approximately what percent of the loans were non-performing in 1994?
• Committee on Banking Sector reforms (Narasimham Committee 2) submitted its report in?
• Head Office of Bank of International Settlement is at?
• What does DRI stands for?
• ‘C’ in CBS stands for?
• Before introduction of new private sector banks in 1990s, share of public sector banks in banking was?
• Cooperative Credit Societies Act was enacted in the year?
• RBI has set up task force and has signed MoU (Memorandum of Understanding) with many state governments for better regulation of?
• Vaidyanathan Committee (Task Force on Revival of Cooperative Credit Institutions) was set up in the year?
• RBI does not manage/influence?
• RBI is regulator and supervisor of
• Which is not a function of RBI?
• Which of the following is not covered under Payment and Settlement?
• Loan repayment by instalment payments is called as -
• Annuity calculation assumes that every payment is
• Which of the following is not correct about ARR method?
• In case of mutually exclusive projects having uneven cash flows and when the result of NPV and IRR are conflicting; NPV is a better method because:
• When inflation is going very high central bank  
• Which of the following is not an objective of the monetary policy  
• RBI can issue any amount of notes on the basis of reserves maintained in the form of  
• Which of the following are assets of issue department of RBI
• WMA stands for-  
• M1 is defined as: