Saturday, June 18, 2011

Punjab National Bank Agriculture Officers Exam. 2009 Solved Paper

Professional Knowledge (Economics)


1. Say’s Law of Markets states that—
(A) Demand creates its own supply
(B) Supply creates its own demand
(C) Demand creates its own demand
(D) Supply creates its own supply
(E) None of these
Ans : (D)

2. Malthusian theory of population is based on—
(A) Harmonic progression of population
(B) Geometric progression of food production
(C) Arithmetic progression of population
(D) Geometric progression of population
(E) All of the above
Ans : (D)

3. Gresham’s Law states that—
(A) Good money drives bad money out of circulation
(B) Bad money drives good money out of circulation
(C) Both good money and bad money may co-exist
(D) Neither bad money nor good money may be long in circulation
(E) None of these
Ans : (B)

4. The on-going melt down had its origin in—
(A) The real sector
(B) The financial sector
(C) The service sector
(D) The textile sector
(E) None of these
Ans : (A)

5. A competitive firm maximizes its profit when—
(A) MR = AR
(B) MR = MC
(C) MC = AC
(D) MC = AR
(E) None of these
Ans : (B)


6. ‘Supernormal’ profit may exist in a market due to—
(A) Asymmetry of information
(B) Restriction of information
(C) Quantity restriction
(D) Price restriction
(E) All the above
Ans : (A)

7. Profit is caused by—
(A) Dynamic element in the economy
(B) Innovation
(C) Windfall
(D) All of the above
(E) None of these
Ans : (D)

8. Interest is paid—
(A) To compensate for inflation
(B) Due to superiority of present over future goods
(C) Because demand for money outstrips its supply
(D) To ensure the growth of the real sector
(E) All the above
Ans : (B)

9. Investment is defined as a—
(A) Deployment of a sum in business operations
(B) Purchasing an interest bearing bond
(C) Change in the stock of capital
(D) All the above
(E) None of these
Ans : (C)

10. The unproductive expenditure of the rich is—
(A) Necessary to the employment of the poor
(B) An impediment to the growth of an economy
(C) Having no bearing on the economy
(D) Having bearing only on the economy of the rich
(E) None of these
Ans : (A)

11. Heckscher-Ohlin theory explains—
(A) Pattern of trade in terms of relative factor endowments of countries
(B) Why a country may import products which use extensively the country’s scarce factor
(C) The law of comparative cost
(D) The concept of reciprocal demand
(E) All the above
Ans : (A)

12. ‘Quasi-rents’—
(A) Are in the nature of free gifts
(B) May be applicable to all factors of production
(C) Comprise of all the returns to the firm in excess of the returns of the marginal firm
(D) All the above
(E) None of these
Ans : (C)

13. The indifference curve technique is essentially—
(A) A cardinal approach
(B) An ordinal approach
(C) A quasi-ordinal approach
(D) All the above
(E) None of these
Ans : (B)

14. The slope of an indifference curve expresses—
(A) The marginal rate of substitution of two goods
(B) A ratio of marginal utility of one good to another
(C) Both (A) and (B)
(D) A ratio of total utility of one good to another
(E) None of these
Ans : (A)

15. ‘Pass through’ effect in international trade theory refers to—
(A) The proportion of an exchange rate change that is reflected in export and import price change
(B) Exports and imports not facing any tariff barrier
(C) Exports and imports not facing any technical barrier
(D) All of the above
(E) None of these
Ans : (A)

16. Uruguay Round of multilateral trade negotiations—
(A) Started in 1986 and completed at the end of 1993
(B) Aimed at reversing the rising trend of non-tariff trade barriers
(C) Replaced the GATT with WTO
(D) Brought services and agriculture into WTO
(E) All of the above
Ans : (E)

17. Product Cycle Model in international trade theory (Vernon, 1966)—
(A) Is an extension of technological gap model
(B) Is an extension of Heckscher-Ohlin model
(C) Explains dynamic comparative advantage of new products and new processes of production
(D) All of the above
(E) None of these
Ans : (E)

18. Hedging and speculation in forex markets—
(A) Are opposite activities
(B) Parallel activities
(C) Same activities
(D) All of the above
(E) None of these
Ans : (A)

19. A currency swap refer to—
(A) A spot sale of currency combined with a forward repurchase of the same currency—as part of single transaction
(B) A forward sale of currency combined with a forward repurchase of the same currency—as part of a single transaction
(C) A forward sale of currency combined with a forward repurchase of the same currency—in two different transactions
(D) All of the above
(E) None of these
Ans : (A)

20. Public-Private Partnership projects in India are mostly related to—
(A) Airports
(B) Ports
(C) Railways
(D) Roads
(E) Urban development
Ans : (D)

21. The largest share in the short term money market of India in recent times belonged to the segment—
(A) Collaterised Borrowing and Lending Obligation (CBLO)
(B) Traditional repo
(C) Clearcorp Repo Over Matching System (CROMS)
(D) Call
(E) Others
Ans : (D)

22. As per the revised estimate of CSO, the GDP in India at factor cost during 2008-09 was—
(A) Rs. 28,71,120 crore
(B) Rs. 31,29,717 crore
(C) Rs. 33, 39,375 crore
(D) Rs. 44,82,436 crore
(E) None of these
Ans : (C)

23. Mid Day Meal Scheme—
(A) Is a centrally funded and largest school meal scheme in the world
(B) Provides each child in government and government aided school a minimum of 300 calories and 8–12 gm of protein each day of school for a minimum of 200 days
(C) Provides lunch to about 120 million children
(D) All of the above
(E) None of these
Ans : (C)

24. Insurance penetration is defined as the—
(A) Ratio of premium underwritten in a year to GDP
(B) Ratio of premium underwritten in a year to total population
(C) Ratio of insurance subscribers in a year to total population
(D) Ratio of total number of policy holders in a year to total population
(E) None of these
Ans : (A)

25. Insurance density is defined as the—
(A) Ratio of premium underwritten in a year to GDP
(B) Ratio of premium underwritten in a year to total population
(C) Ratio of insurance subscribers in a year to total population
(D) Ratio of total number of policy holders in a year to total population
(E) None of these
Ans : (B)

26. Minimum Support Prices of crops are recommended by—
(A) Planning Commission of India
(B) Commission for Agricultural Costs and Prices (CACP)
(C) Finance Commission of India
(D) Farmers’ Commission of India
(E) None of these
Ans : (B)

27. The Electricity (Amendment) Act 2007—
(A) Dispensed with licence requirement for sale from captive units
(B) Provided for joint effort by the Central and State governments for providing access to all areas including villages and markets
(C) Expanded the definition of theft to cover the use of tampered meters
(D) All of the above
(E) None of these
Ans : (D)

28. In times of slowdown of the economy, the fiscal policy influences aggregate demand through—
(A) Discretionary element
(B) Non-discretionary element
(C) Lowering of tax rates
(D) All of the above
(E) None of these
Ans : (C)

29. Thirteenth Finance Commission is headed by—
(A) Dr. Rangarajan
(B) Dr. Vijay L. Kelkar
(C) Dr. Suresh Tendulkar
(D) Dr. C. H. Hanumantha Rao
(E) None of these
Ans : (B)

30. A constitutionally recognized body is—
(A) Planning Commission
(B) Finance Commission
(C) Forward Commission
(D) Farmers Commission
(E) None of these
Ans : (B)

31. Rashtriya Krishi Vikas Yojana was launched by GOI in August 2007 with the objective(s) of—
(A) To incentivise the states to increase public investment in agriculture and allied sectors
(B) To ensure that local needs/crops/priorities are better reflected
(C) To achieve the goal of reducing the yield gaps in important crops
(D) All of the above
(E) None of these
Ans : (D)

32. The Buffer Stock of foodgrains at the beginning of February 2009 stood at—
(A) 16•2 million tonnes
(B) 20•0 million tonnes
(C) 37•4 million tonnes
(D) 36•2 million tonnes
(E) None of these
Ans : (D)

33. Public Private Partnership came to be introduced in India to—
(A) Mitigate the financial burden of the governments
(B) Respond to the technological change that allow unbundling of infrastructure
(C) Alter the character of goods and services from pure public to private ones
(D) All of the above
(E) None of these
Ans : (A)

34. Heteroscedasticity in econometric analysis means—
(A) The variance for each disturbance term (Vi) is the same for all i’s
(B) The variance for each disturbance term (Vi) is not the same for all i’s
(C) The co-variance for each pair of disturbance term is the same
(D) The co-variance for each pair of disturbance term is not the same
(E) None of these
Ans : (B)

35. Autocorrelation in econometric analysis refers to—
(A) The correlation between the values of different variables
(B) The correlation between the values of alternative variables
(C) The correlation between successive values of the same variable
(D) All of the above
(E) None of these
Ans : (A)

36. Durbin-Watson Test is applied in econometric models to test—
(A) Presence of heteroscedasticity in a model
(B) For autocorrelated errors in the sample data
(C) For multicorrelinearity
(D) For autoregressive disturbances
(E) None of these
Ans : (B)

37. A weakly stationary stochastic process is so called, if—
(A) Its mean and variance are constant over time
(B) The value of covariance between two time periods depends only on lag between two time periods
(C) The value of covariance does not depend on the actual time at which the covariance is computed
(D) All the above
(E) None of these
Ans : (D)

38. Dummy variables are used in regression models—
(A) To represent important variables that are not qualitatively measurable
(B) To capture the effect of specific attributes
(C) As binary variables
(D) To distinguish between two groups of population
(E) All of the above
Ans : (C)

39. Principal components in econometric analysis—
(A) Are linear combinations
(B) Help to increase the degrees of freedom
(C) Help to reduce high degree of multicorrelinearity
(D) All of the above
(E) None of these
Ans : (A)

40. If world population grows at 2•6 per cent, then it will double in—
(A) 44.34 years
(B) 36.92 years
(C) 29.32 years
(D) 26.66 years
(E) None of these
Ans : (E)
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CURRENT AFFAIRS PREPARATION PLAN

“Current Affairs” and “General Knowledge” cover many topics like from economy to sports or education to politics, or even technology to automobiles. In every second some issues are happening around the world in these sectors, and to accumulate the excerpt of some highlighted news, and memorize it is a good plan to prepare current affairs and GK.

Some Important Tips to Follow:

Read Newspapers regularly

We all know that “Old is Gold”, same thing applies here too. We need to make a habit of reading newspapers regularly. I’ll suggest you to read more than one newspaper. It will be better if you read one newspaper of your mother language, and other of English. Some useful newspapers are “The Times of India”, “The Hindu”, “The Telegraph” etc. You need to start this habit at least 6 months before the actual exam that will help you to get access to all the important events of that period of time.

You need to keep an eye on what’s happening around you in your country and world as well. Trust me guys, you will surely find it interesting after several days. We all know that staying updated is always a good idea, as it will stand you apart from the rest.

Read Magazines thoroughly

This is another great option to prepare the subject we are talking about. There are many leading magazines that focus on current affairs and General Knowledge. You need to buy it from your local magazine seller, and start reading it thoroughly. These magazines beautifully categorize the articles with its genres to make it interesting to read on. Some of the useful magazines are Pratiyogita Darpan andManorma.

Try to read some business magazines and sports magazines too along with a general magazine. This will increase your chances of cracking the competitive exams with ease. Some useful business magazines areBusiness Today, Business Line etc.

Follow News Channels

You will need to follow news channels at least once a day. Now most of the leading news channels are active for 24*7. You need to pick up a suitable time for yourself to watch any favorite news channel of yours. You can watch ABP News, NDTV, Times Now, ET Now, Zee News etc. Try to go through all the breaking and highlighted news, and make it a habit.

I know that watching news channels for long will bore you, so I’ll suggest you to allocate only 30 minutes for it in a whole day. All the leading ones shows the glimpses of all important events of the day quite frequently, so 30 minutes will be enough for you to boost up your current affairs and GK knowledge.

Maintain a Diary

My teacher used to tell me that whenever you learn something try to write it down in your diary, as it will help you to memorize it in a better manner. He is so right, as this method helped me a lot to score good marks in every exam that I appeared for. As I already mentioned before that a lot of events are occurring in the country and around the world, so it is easily understandable that it is not easy to remember everything. It’s always a superb idea to maintain a diary of current events.

You need to update this diary on a daily basis with all the events that you consider as important ones. This diary will become quite useful for the revision part, as it will provide you information about all the important events at a place. You should keep revising the diary frequently, as it will help you to memorize important names, dates, awards etc.

Channelize your Preparation Accordingly

All the competitive exams are not same, as all of them have different pattern, even when it comes to the same topic as ‘Current Affairs’ or ‘GK’. For example for civil services exam, you need to give importance on events of National value. On the other scenario, in matter of bank job exam, the focus should be on the news on banking sectors, and economic and business news.

Thus I’ll suggest you to prepare as per the exams you are appearing for, as channelizing your preparation according to the pattern of the exam will accelerate your chance of getting selected.

Use Internet Resources

“Google, YouTube and Wikipedia are my favorite teachers’; one of my friends told me this once. This is quite true indeed, so you should use all the available online resources to study current affairs and GK for exams. For example this blog is all about “Current Affairs”, so you can check this blog regularly by subscribing to us (check the sidebar for subscription options). You can actively take part some forums that are focusing on current events. The good part is you can follow the websites of all leadingnewspapers online if you don’t have enough time to read newspapers.

Use Social Networking Sites for Good

Believe me or not you can surely use social networking sites to your benefits. Especially to prepare current affairs and General knowledge Facebook, Twitter, LinkedIn and StumbleUpon may help you a lot. You can join some Facebook pages, or follow some twitter accounts that are related to current affairs. You can join our Facebook Page too for this matter, or connect with me at LinkedIn or circle me in Google Plus for all the information on recent happenings to boost up your General Knowledgeability.

Give Priority to your Strength

We usually find difficulties when we try to learn everything at once. In that process basically we study a lot, but remember a little. We need to first select our strength areas for our preparation. Try to givepriority to your strength areas. It may be Sports, economy, Government Affairs or technology. Suppose you are applying for Bank exams, then you should prepare industry related news. Along with that you may pick any 2-3 areas of your strength like sports or technology. You need to prepare these sections to the utmost level. I can assure you that these strategies will help you to score much better in Current Affairs section.

Participate in Online Quizzes

You should participate in some free quizzes that are available online to evaluate yourself. For this matter you can easily access our “Quiz Section”. This will give you proper idea whether you are ready for the big exam day or not. As an added factor it will also provide you confidence i.e. very much essential. You can download Monthly-wise current affairs questions from Here.