January Test Solution - INR Bondsinrbonds.com/wp-content/uploads/2015/02/JAN_TEST_SOLN.pdf · January Test Solution ... India's Current Account Deficit (CAD) ... Till January 2015

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January Test Solution

(Question): In the 2004-2014 period, ten year benchmark government bond yield movement was largely ____________ (A): Upwards (B): Downwards (Correct): A (Question): CPI (Consumer Price Index) was at record lows of _______% for November 2014. (A): 4.38 (B): 5.38 (C): 6.38 (D): 3.38 (Correct): A (Question): The sharp fall in inflation since November 2013 is largely attributed to________________ (A): Base effect (B): Fall in food and commodity prices (C): Weak demand scenario (D): All of the above (E): Only (a) and (b) (F): Only (c) and (b) (Correct): D (Question): In an economy with weak demand scenario manufacturers have less pricing power. (A): True (B): False (Correct): A (Question): Inflation as measured by the WPI (Wholesale Price Index) was at 0% for November 2014. (A): True (B): False (Correct): A



(Question): Currently India has __________ food grain stocks to keep prices in check in a bad production year. (A): Sufficient (B): Insufficient (Correct): A (Question): India's major import is __________ which forms _____% of India's imports. (A): LPG,50 (B): Crude Oil,50 (C): LPG,34 (D): Crude Oil,34 (Correct): D (Question): India's fiscal deficit has come down both as a percentage of GDP and in absolute terms since 2009-10. (A): True (B): False (Correct): B (Question): India's outstanding government debt moved up _______ times over the last 6 years. (A): 3 (B): 6 (C): 10 (D): 8 (Correct): A (Question): High levels of market borrowing by government have resulted in government bond yields trending higher on a sustained basis. (A): True (B): False (Correct): A (Question): The government is projecting a fiscal deficit of ______% and _____% of GDP for the 2015-16 and 2016-17 respectively. (A): 1.6,1 (B): 2.6.2 (C): 3.6,3 (D): 0.6,1



(Correct): C (Question): Falling deposit growth and cut in SLR (Statutory Liquidity Ratio) from 25% to 22% over the last few years makes banks hold __________ (A): More government bonds (B): Less government bonds (Correct): B (Question): Government bonds worth Rs 1.75 trillion and Rs 2.31 trillion are coming up for redemption in the next two fiscal years. (A): True (B): False (Correct): A (Question): Current Account Deficit (CAD) was at _______ % of GDP in 2013-14. (A): 1.7 (B): 2.7 (C): 0.7 (D): 3.7 (Correct): A (Question): India's Current Account Deficit (CAD) is expected to stay at levels of ____% of GDP over the next few years. (A): 2-2.5 (B): 1-1.5 (C): 3-3.5 (D): 0.5-1 (Correct): A (Question): Falling oil prices are a big positive factor for keeping down the CAD. (A): True (B): False (Correct): A (Question): CAD (Current account deficit) is financed by _________ (A): Government borrowing (B): Capital flows (C): None of the above (Correct): B



(Question): Positive BOP (Balance of Payment) position will lead to accretion of fx reserves. (A): True (B): False (Correct): A (Question): Higher CAD can lead to _________ INR (A): Weak (B): strong (Correct): A (Question): The necessary conditions for the ten year government bond yield to move down are_____________ (A): Low inflation expectations (c,e) (B): Manageable fiscal deficit levels (C): Sustainable CAD(Current account deficit) (D): Global liquidity flows (E): Low capital flows (F): All of the above (G): (a,b,c,d) (Correct): G (Question): In the current fiscal year, upto October 2014, RBI has bought USD _____billion. (A): 10 (B): 20 (C): 30 (Correct): B (Question): RBI is expected to buy around USD 40 billion in fiscal 2015-16 given the expected BOP. (A): True (B): False (Correct): A (Question): Euro has appreciated against USD in year 2014. (A): True (B): False (Correct): B



(Question): USD depreciated against Japanese Yen (JPY) in year 2014 (A): True (B): False (Correct): B (Question): Sharp fall in commodities in 2014 is attributed to_________ (A): Global economic slowdown (B): Excess supply (C): Muted growth in China (D): All of the above (E): None of the above (Correct): D (Question): US monetary policy has significant importance in determining commodity prices in 2015. (A): True (B): False (Correct): A (Question): Expected rise in interest rates in US economy is negative for commodity prices. (A): True (B): False (Correct): A (Question): In year 2014 Brent crude has fallen by around _____%. (A): 19 (B): 29 (C): 49 (D): 89 (Correct): C (Question): Reasons for crude oil fall are ________ (A): Supply glut (B): Lower demand (C): Only (b) (D): Both (a) and (b) (E): Only (a) (Correct): D



(Question): Russia is among the top five oil producing countries. (A): True (B): False (Correct): A (Question): Russia is among the top five oil consuming countries. (A): True (B): False (Correct): A (Question): US Oil production is expected to increase in the near future at a rapid pace with the Shale Oil revolution. (A): True (B): False (Correct): A (Question): __________is seen as a safe haven asset in times of crisis points in the global economy. (A): Silver (B): Gold (C): Copper (D): None of the above (Correct): B (Question): Gold prices have fallen from highs in USD and INR terms since 2011 (A): True (B): False (Correct): A (Question): _________is considered a hedge against inflation (A): Crude oil (B): US treasury (C): Gold (Correct): C (Question): _________ is the major demand driver for aluminium as nearly 40% of demand is coming from the country alone.



(A): US (B): Australia (C): China (D): India (Correct): C (Question): The US dollar will benefit from lower commodity prices as growth imbalances heighten. (A): True (B): False (Correct): A (Question): Oil forms around ______% of India's subsidy bill (A): 88 (B): 78 (C): 68 (D): 38 (Correct): D (Question): The Thompson Reuters/Jefferies CRB Index (CRB Index) is a ______ index (A): Equity (B): Commodity (C): Debt (D): None of the above (Correct): B (Question): The Thompson Reuters/Jefferies CRB Index (CRB Index) has _______ in last 1 year. (A): Increased (B): Decreased (Correct): B (Question): Increasing commodity prices are good for commodity export driven economies. (A): True (B): False (Correct): A (Question): Organization of Petroleum Exporting Countries (OPEC) pledged to keep supply constant despite plunging oil prices, in November 2014.



(A): True (B): False (Correct): A (Question): The USD index tracks the USD against a basket of _______ major currencies (A): 6 (B): 8 (C): 12 (D): 4 (Correct): A (Question): As on January 2015 USD index is at 10 year highs at 94 levels. (A): True (B): False (Correct): A (Question): In 2014 _______ appreciated against USD (A): Chinese Yuan (CNY) (B): Swiss franc(CHF) (C): Bazillion real(BRL) (D): None of the above (Correct): D (Question): US third quarter 2014 GDP printed at ____%, the highest growth rate seen since 2006. (A): 2.5 (B): 1.5 (C): 5 (D): 3.5 (E): 6.5 (Correct): C (Question): Unemployment rate in US has increased since January 2014. (A): True (B): False (Correct): B (Question): Strong USD is positive for Eurozone and Japan. (A): True



(B): False (Correct): A (Question): ECB and BoJ are increasing stimulus measures to boost their economies and fight deflation. (A): True (B): False (Correct): A (Question): Russian Ruble ________ 44% in the last year against the USD. (A): declined (B): increased (Correct): A (Question): ________ economy is hugely dependent on export of oil and natural gas for revenues (A): US (B): UK (C): Russia (D): China (E): Brazil (F): Australia (Correct): C (Question): Inflation Target for Bank Of Japan is ___________% (A): 4 (B): 6 (C): 2 (D): 0.1 (Correct): C (Question): In the last 5 years Yuan (CNY) has appreciated against USD. (A): True (B): False (Correct): A



(Question): Australian dollar is impacted by ________ (A): Falling iron ore prices (B): Weak demand for commodities from china (C): Both (a) and (b) (D): None of the above (Correct): C (Question): Indian Rupee (INR) has declined in the last 5 years against the USD (A): True (B): False (Correct): A (Question): Sovereign ten year bond yields from US to Germany to Japan have _____ sharply over the last one year on the back of lack of inflation globally. (A): Fallen (B): Risen (Correct): A (Question): As on January 2015 Brent crude is at USD ______ /bbl levels (A): 60 (B): 55 (C): 50 (D): 65 (Correct): C (Question): Government surplus has gone __________ after advance tax receipt in December 2014. (A): Up (B): Down (Correct): A (Question): RBI has sucked out close to Rs 500 billion through OMO in the April-December 2014 period to negate the liquidity infusion through fx purchases. (A): True (B): False (Correct): A (Question): India's fiscal deficit stood at Rs 5250 billion as of November 2014, which is _______% of full year deficit estimates.



(A): 80 (B): 99 (C): 56 (D): 70 (Correct): B (Question): Total tax collection in the April-November 2014 period was _______% of budget estimates. (A): 45.6 (B): 66.6 (C): 76.6 (D): 36.6 (Correct): A (Question): Till January 2015 Government of India has not realized its revenues from disinvestments and spectrum auctions budgeted for fiscal 2014-15. (A): True (B): False (Correct): A (Question): The Swiss Central Bank, the SNB (Swiss National Bank) in January 2014 lowered the deposit rate to -0.75% to ________ funds being parked in Swiss deposit accounts. (A): encourage (B): discourage (Correct): B (Question): ________ is buying covered bonds and asset backed securities to increase its balance sheet size. (A): Fed (B): RBI (C): ECB (D): None of the above (Correct): C (Question): The CHF is considered a safe haven currency due to the strong economic fundamentals of the country. (A): True (B): False (Correct): A (Question): Switzerland is export driven country.



(A): True (B): False (Correct): A (Question): _________ is the lowest indebted nation in Europe (A): Italy (B): Switzerland (C): Portugal (D): Spain (Correct): B (Question): CAD was at 1.7% of GDP in fiscal 2013-14 against 4.7% of GDP in fiscal 2012-13. (A): True (B): False (Correct): A (Question): Low global crude oil prices helps India in_____________ (A): Containing Fiscal and Current Account Deficit (B): Increasing tax revenues (Correct): A (Question): Low global crude oil prices can affect India's growth______ (A): Yes if commodity dependent economies collapse leading to falling world demand (B): No as India can lower interest rates and improve economic growth (Correct): A (Question): Best funds to invest in when commodity prices are falling are_______ (A): Gilt funds (B): Liquid funds (C): Fixed deposits (Correct): A (Question): Since 2008-09 lowest level for crude oil was seen at ______ USD/bbl (A): 55 (B): 50 (C): 40 (D): 15 (E): 20 (Correct): C



(Question): Five year OIS (Overnight Index Swaps) is at ________ levels as of January 2015. (A): 6.75 (B): 6.25 (C): 8.28 (D): 9.25 (Correct): A (Question): As of January 2015 government bond yield curve is flat (A): True (B): False (Correct): A (Question): As of November 2014 government has already spent ________% of plan expenditure. (A): 52.4 (B): 92.4 (C): 72.4 (D): 32.4 (Correct): A (Question): The government is scheduled to borrow Rs _______ billion in the January - March 2015 period. (A): 810 (B): 1010 (C): 410 (D): 310 (Correct): A (Question): The USD/INR pair is quoted as the amount of USD required to purchase one INR. (A): True (B): False (Correct): B (Question): The Federal Reserve had ended quantitative easing in __________ (A): October 2013 (B): October 2014 (C): November 2013



(D): November 2014 (Correct): B (Question): Lower credit growth by banks is positive for bond funds. (A): True (B): False (Correct): A (Question): Mutual funds are the largest buyers of government bonds. (A): True (B): False (Correct): B (Question): Finance Ministry Mid-Year Economic Review projects India GDP growth for fiscal year 2014-15 at _____% (A): 6.5 (B): 5.5 (C): 4.5 (D): 7.5 (Correct): B (Question): Which of the following commodities has gained in year 2014. (A): Gold (B): Silver (C): Copper (D): Coffee (Correct): D (Question): Government's commitment to bring down fiscal deficit to 3% of GDP by 2016-17 is positive for_________ (A): Gilt funds (B): Income funds (C): Short term funds (D): All of the above (E): Only (a) (F): Only (a) and (b) (Correct): D



(Question): Capital flows into India ________ in year 2014. (A): Increased (B): Decreased (Correct): A

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January Test Solution - INR Bondsinrbonds.com/wp-content/uploads/2015/02/JAN_TEST_SOLN.pdf · January Test Solution ... India's Current Account Deficit (CAD) ... Till January 2015