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BRBNMPL Online Test study materials
BRBNMPL Online Test study resources

BRBNMPL Online Test practice questions

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Question 1General Awareness (company, banking and note production context)

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) functions primarily as which type of organisation within the RBI ecosystem?

  1. A wholly owned subsidiary of the Reserve Bank of India engaged in banknote printing Correct answer.
  2. A joint venture between the Government of India and commercial banks
  3. An autonomous statutory board that regulates cooperative banks
  4. A department of the Ministry of Finance handling coin distribution

Explanation

BRBNMPL was incorporated in 1995 as a private limited company fully owned by the Reserve Bank of India, created to modernise and expand the country's banknote printing capacity. Because the RBI holds the entire shareholding, it is a wholly owned subsidiary rather than a statutory regulator or a government ministry wing.

Question 2General Awareness (company, banking and note production context)

Which two cities host the banknote printing presses operated by BRBNMPL?

  1. Mysuru and Salboni Correct answer.
  2. Hyderabad and Noida
  3. Nashik and Dewas
  4. Thiruvananthapuram and Bhubaneswar

Explanation

BRBNMPL runs its two paper-and-ink banknote printing presses at Mysuru in Karnataka and Salboni in West Bengal. Nashik and Dewas, by contrast, are the locations of the presses run by the Security Printing and Minting Corporation of India.

Question 3General Awareness (company, banking and note production context)

The paper on which Indian banknotes are printed is notable for which characteristic?

  1. It is made entirely from recycled newsprint
  2. It is ordinary writing paper coated with starch
  3. It is a polymer film supplied from abroad
  4. It is a cotton-based substrate with no wood pulp Correct answer.

Explanation

Indian banknote paper is a special security paper made predominantly from cotton rags and cotton linters, giving it strength and a distinct feel. Wood pulp is deliberately avoided because it weakens the sheet and shortens the life of a note in circulation.

Question 4General Awareness (company, banking and note production context)

Which security feature on an Indian banknote changes appearance when the note is tilted?

  1. The year of printing printed at the bottom
  2. The micro-lettering inside the watermark window
  3. The bleed lines on the left edge
  4. The colour-shifting numeral in the centre Correct answer.

Explanation

The denomination numeral printed in the central band uses optically variable ink, so its colour shifts between green and blue as the note is tilted. This tilt-dependent behaviour is what distinguishes it from static printed elements.

Question 5General Awareness (company, banking and note production context)

Intaglio printing is used in banknote production because it produces which effect?

  1. Raised ink that can be felt by touch Correct answer.
  2. A perforated pattern of tiny holes
  3. A magnetic stripe along the border
  4. A flat, uniform ink layer across the whole sheet

Explanation

In intaglio printing the design is engraved below the surface of the plate and ink is transferred under high pressure, leaving a raised deposit on the paper. This tactile relief is both a security feature and an aid for visually impaired users.

Question 6General Awareness (company, banking and note production context)

The Mahatma Gandhi New Series of banknotes was introduced primarily to achieve which objective?

  1. To strengthen security features and improve accessibility Correct answer.
  2. To reduce the number of denominations in circulation
  3. To replace paper notes entirely with coins
  4. To allow commercial banks to print their own notes

Explanation

The Mahatma Gandhi New Series, introduced from 2016, upgraded security features and redesigned the layout for better visual recognition, including larger numerals and tactile marks. Accessibility for the visually impaired was an explicit design goal alongside counterfeit resistance.

Question 7General Awareness (company, banking and note production context)

In the RBI's currency management framework, what does the term 'clean note policy' refer to?

  1. Printing only newly designed denominations each year
  2. Withdrawing soiled and mutilated notes and replacing them with fresh ones Correct answer.
  3. Ensuring every note is washed before issue
  4. Limiting cash withdrawals at bank branches

Explanation

The clean note policy requires banks to sort notes, return soiled and unfit ones to the RBI, and issue only good-quality notes to the public. Its purpose is to keep the currency in circulation clean and genuine.

Question 8General Awareness (company, banking and note production context)

Which agency is responsible for deciding the volume of banknotes to be printed in a year?

  1. Individual scheduled commercial banks based on their demand
  2. The Securities and Exchange Board of India
  3. BRBNMPL's own board of directors independently
  4. The Reserve Bank of India, in consultation with the Government of India Correct answer.

Explanation

Under the RBI Act, the Reserve Bank has the responsibility for currency management and decides indents for note supply in consultation with the Government of India. Printing agencies such as BRBNMPL execute the indents rather than setting them.

Question 9General Awareness (company, banking and note production context)

What is the role of a watermark in banknote security?

  1. It is formed within the paper during manufacture and is visible against light Correct answer.
  2. It is printed on the surface with ordinary ink
  3. It is applied as a sticker after printing
  4. It is a magnetic thread woven into the border

Explanation

A watermark is created by varying the density of fibres while the paper is being made, so it is integral to the sheet and cannot be printed on later. It becomes visible when the note is held up to light, making it hard to counterfeit by simple printing.

Question 10General Awareness (company, banking and note production context)

Which of the following best describes the function of a security thread embedded in an Indian banknote?

  1. It provides a machine-readable and visually verifiable authentication element Correct answer.
  2. It carries the serial number of the note
  3. It allows the note to be traced to the bank that issued it
  4. It stiffens the paper so notes do not fold

Explanation

The security thread is embedded in the paper during manufacture and carries features such as colour-shift and micro-text that can be checked by eye and by sorting machines. It is an authentication device rather than a structural or record-keeping element.

Question 11General Awareness (company, banking and note production context)

Under the RBI's rules, notes that are torn, excessively soiled or otherwise unfit are generally handled in which way?

  1. Exchanged only at the issuing press where they were printed
  2. Refused outright with no compensation in every case
  3. Always exchanged at half value regardless of condition
  4. Exchanged at face value only if the missing area is small, otherwise adjudicated under the note refund rules Correct answer.

Explanation

The RBI Note Refund Rules provide for full or half value depending on the extent of the missing portion and the denomination, with adjudication by designated bank branches or RBI offices. Notes that fail these thresholds are not refunded.

Question 12General Awareness (company, banking and note production context)

What is the significance of the 'star' series in Indian banknote printing?

  1. It marks notes printed for export to other countries
  2. It denotes notes printed before independence
  3. It indicates notes valid only in a particular state
  4. It is used for replacement notes issued in place of defective ones Correct answer.

Explanation

Star series notes are replacement notes printed to substitute for sheets or notes rejected during quality control, keeping the serial numbering of the original packet intact. They are legal tender like any other note of that denomination.

Question 13General Awareness (company, banking and note production context)

Which body regulates and supervises the banking system in India, giving it a direct link to the note supply chain through currency chests?

  1. The Ministry of Corporate Affairs
  2. The Reserve Bank of India Correct answer.
  3. The Competition Commission of India
  4. The Insurance Regulatory and Development Authority of India

Explanation

The RBI regulates banks and also administers currency chests maintained at bank branches, which are the distribution nodes through which fresh notes reach the public. This makes the RBI the common authority over both banking supervision and currency logistics.

Question 14General Awareness (company, banking and note production context)

A currency chest is best described as which of the following?

  1. A fund used by banks to lend to each other overnight
  2. A coin-operated machine for dispensing change
  3. A printing unit located inside a bank branch
  4. A vault maintained by a designated bank branch to hold RBI currency on the RBI's behalf Correct answer.

Explanation

Currency chests are repositories set up at selected bank branches where notes and coins belonging to the RBI are stored and from which they are distributed to other branches. The stock in a chest is treated as RBI property held in custody by the bank.

Question 15General Awareness (company, banking and note production context)

Which of these is a soiled-note detection consideration for bank sorting machines?

  1. Counting the number of letters in the serial number
  2. Checking whether the note was printed on a Monday
  3. Measuring the weight of the ink used in intaglio printing
  4. Assessment of optical and physical properties such as dirt level and limpness Correct answer.

Explanation

Note sorting machines assess fitness using sensors that measure soiling, limpness, holes and other physical attributes, and divert unfit notes for destruction. Serial number letter counts or printing-day details play no part in fitness sorting.

Question 16General Awareness (company, banking and note production context)

What does the term 'seigniorage' refer to in the context of currency issuance?

  1. The fee paid by banks for sorting soiled notes
  2. The cost of transporting coins to rural branches
  3. The penalty levied for damaging a banknote
  4. The profit or benefit accruing to the issuer from creating currency Correct answer.

Explanation

Seigniorage is the difference between the face value of currency issued and the cost of producing and maintaining it, accruing to the issuing authority. It is a macroeconomic concept about issuance gains, not a service charge on banks.

Question 17General Awareness (company, banking and note production context)

Which of the following is an example of a 'micro-perforation' type security feature concept in modern banknote design?

  1. A holographic sticker applied at the branch
  2. Tiny laser-drilled holes forming a discernible pattern when held to light Correct answer.
  3. A handwritten signature of the governor
  4. A printed bar code on the reverse

Explanation

Micro-perforations are minute holes created in the paper that form a recognisable pattern or numeral when the note is held against light. They are a machine-verifiable and visually checkable security element produced during manufacture.

Question 18General Awareness (company, banking and note production context)

In the context of note production, what does 'indent' mean?

  1. An order placed for supply of a specified quantity of banknotes Correct answer.
  2. A register of soiled notes destroyed
  3. A design proof approved by the press
  4. A penalty for short supply of notes

Explanation

An indent is the formal order specifying the quantity and denominations of notes to be supplied, placed by the RBI with the printing presses. It is a supply instruction, not a penalty, proof or destruction record.

Question 19General Awareness (company, banking and note production context)

Which feature helps a visually impaired user identify the denomination of an Indian banknote?

  1. The colour of the serial number ink
  2. The thickness of the security thread
  3. The size of the governor's signature
  4. Raised tactile marks on the left edge of the note Correct answer.

Explanation

Indian banknotes carry raised bleed lines on the left edge whose count and arrangement differ by denomination, allowing tactile identification. This accessibility feature was reinforced in the Mahatma Gandhi New Series.

Question 20General Awareness (company, banking and note production context)

What is the primary purpose of the 'serial number' on a banknote?

  1. To show the date of demonetisation
  2. To uniquely identify each note for tracking and authentication Correct answer.
  3. To record the bank branch that issued it
  4. To indicate the value of the note

Explanation

Every note carries a unique serial number that allows individual identification, supports authentication checks and helps investigations into counterfeiting or theft. The denomination is shown by numerals and words, not by the serial number.

Question 21General Awareness (company, banking and note production context)

Which of the following statements about the RBI's role in coinage is accurate?

  1. Coins are minted by BRBNMPL alongside banknotes
  2. Coins are imported and only stamped by the RBI
  3. Coins are minted by the Government of India and distributed by the RBI Correct answer.
  4. Coins are issued directly by commercial banks without RBI involvement

Explanation

Under the Coinage Act, coins are minted by the Government of India through the mints, while the RBI is responsible for putting them into circulation and managing distribution. BRBNMPL's mandate covers banknote printing, not coin minting.

Question 22General Awareness (company, banking and note production context)

A bank branch receives a bundle of notes whose packets appear tampered with. Under currency chest discipline, what is the appropriate first step?

  1. Verify the packet contents and report the discrepancy as per prescribed chest procedures Correct answer.
  2. Issue the bundle to customers before it is checked
  3. Return the bundle to the customer who deposited it
  4. Destroy the bundle immediately without recording it

Explanation

Currency chest operations require systematic verification of packets and immediate reporting of shortages or tampering under prescribed procedures. Unverified or suspect bundles must not be pushed into circulation, and destruction without record-keeping is improper.

Question 23General Awareness (company, banking and note production context)

Which term describes the deliberate imitation of a banknote with intent to deceive?

  1. Demonetisation
  2. Counterfeiting Correct answer.
  3. Revaluation
  4. Sterilisation

Explanation

Counterfeiting is the production of fake currency intended to pass as genuine, and it is a criminal offence under Indian law. The other terms refer to currency withdrawal, adjustment of currency value, and central bank liquidity operations respectively.

Question 24General Awareness (company, banking and note production context)

Why do central banks periodically introduce new banknote series even when existing notes remain secure?

  1. To stay ahead of improving reproduction technology and to refresh worn stock Correct answer.
  2. To increase the face value of all denominations
  3. To eliminate the need for serial numbers
  4. To reduce the number of printing presses in operation

Explanation

Reproduction technology improves over time, so central banks update designs and security features to keep counterfeiting difficult, while also replacing worn stock. New series do not change face values or remove the need for serial numbers.

Question 25General Awareness (company, banking and note production context)

Which combination correctly pairs a printing process with its typical role in banknote production?

  1. Offset printing for background patterns, intaglio for the main portrait and tactile elements Correct answer.
  2. Letterpress for the watermark, intaglio for the paper substrate
  3. Screen printing for the watermark, offset for the security thread
  4. Intaglio for background patterns, offset for serial numbers only

Explanation

Banknote production typically uses offset printing for multi-colour background designs and intaglio for the principal motifs that carry tactile relief. Watermarks and threads are formed in the paper itself, so they cannot be assigned to printing processes.

Question 26General Awareness (company, banking and note production context)

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) operates its banknote printing presses as a wholly owned subsidiary of which institution?

  1. Securities and Exchange Board of India
  2. NITI Aayog
  3. Reserve Bank of India Correct answer.
  4. State Bank of India

Explanation

BRBNMPL was set up in 1995 as a private limited company fully owned by the Reserve Bank of India to produce banknotes. Its two presses at Mysuru and Salboni supply the RBI's currency requirement alongside the government press at Nashik.

Question 27General Awareness (company, banking and note production context)

Which pair correctly identifies the two banknote printing presses operated by BRBNMPL?

  1. Mysuru and Salboni Correct answer.
  2. Kanpur and Bengaluru
  3. Hyderabad and Kolkata
  4. Nashik and Dewas

Explanation

BRBNMPL runs its note presses at Mysuru in Karnataka and Salboni in West Bengal. The Nashik, Dewas and Hyderabad presses belong to the Security Printing and Minting Corporation of India, which prints under the Government of India route.

Question 28General Awareness (company, banking and note production context)

In banknote production, the paper on which Indian banknotes are printed is distinctive mainly because it is manufactured with which characteristic?

  1. Fully transparent polymer film
  2. A glossy clay coating on both faces
  3. Recycled newsprint pulp with high lignin
  4. A high rag content with no optical brighteners Correct answer.

Explanation

Banknote paper is a durable cotton-based (rag) paper made without optical brightening agents, which keeps it dull under ultraviolet light and helps authentication. Its strength and lack of brighteners also support watermark and thread features.

Question 29General Awareness (company, banking and note production context)

Which printing process gives Indian banknotes their raised, tactile feel on elements such as the portrait and the denomination numeral?

  1. Screen printing
  2. Offset lithography
  3. Flexographic printing
  4. Intaglio printing Correct answer.

Explanation

Intaglio printing uses engraved plates and high pressure, depositing thick ink that stands proud of the paper and can be felt by touch. This tactile quality is a deliberate security and accessibility feature of Indian banknotes.

Question 30General Awareness (company, banking and note production context)

A counterfeit note is detected at a bank counter. Under the RBI's prescribed handling framework, which action is generally required of the bank?

  1. Destroy the note locally without any record
  2. Impound the note and report it to the police and the RBI Correct answer.
  3. Return the note to the customer after punching it
  4. Exchange the note for a genuine note of equal value

Explanation

Banks are required to impound counterfeit notes detected at counters, issue a receipt to the tenderer if asked, and report the matter to the local police and the RBI. The note is not returned to the customer or exchanged for value.

Question 31General Awareness (company, banking and note production context)

Which security feature on Indian banknotes changes appearance when the note is tilted, showing colour shifts or movement?

  1. Optically variable ink element Correct answer.
  2. Watermark
  3. Latent image
  4. Microlettering

Explanation

Optically variable ink contains pigments that shift colour or appearance as the viewing angle changes, which is hard to reproduce. Watermarks, latent images and microlettering are static features viewed under specific conditions rather than angle-dependent colour shifts.

Question 32General Awareness (company, banking and note production context)

In the RBI's currency management, what does 'remittance' of notes by a currency chest to the Issue Department primarily involve?

  1. Sending surplus or unfit notes back to the RBI's issue offices Correct answer.
  2. Transferring notes between two commercial bank branches
  3. Exchanging notes for foreign currency
  4. Lending notes to customers against gold

Explanation

Currency chests remit surplus and unfit notes back to the RBI's issue offices, where they are verified and processed. This keeps the note supply aligned with demand and removes soiled notes from circulation.

Question 33General Awareness (company, banking and note production context)

Which of the following best explains why banknote printing capacity is planned well ahead of demand?

  1. Notes must be printed only in the month they are issued
  2. Notes require long lead times for paper, ink and secure logistics Correct answer.
  3. Printing is banned during the monsoon
  4. Banks refuse to hold stock beyond one week

Explanation

Currency production involves long lead times for security paper, ink, plates and secure transport, so capacity and indents are planned in advance. This ensures adequate fresh notes are available for replacement and seasonal demand.

Question 34General Awareness (company, banking and note production context)

What is the purpose of the 'bleed' or 'gutter' margin in the layout of banknote sheets during printing?

  1. To allow clean cutting and handling without damaging the printed note area Correct answer.
  2. To reduce the cost of ink
  3. To provide space for advertising
  4. To mark the note as unfit

Explanation

Sheet layout includes margins so that cutting, perforating and handling do not intrude on the printed design of each note. These margins are trimmed away during finishing.

Question 35General Awareness (company, banking and note production context)

Which body decides the design and denominations of coins in India, while the RBI manages their distribution?

  1. BRBNMPL
  2. The Government of India Correct answer.
  3. SEBI
  4. The Reserve Bank of India

Explanation

Coinage is a Government of India responsibility under the Coinage Act, with designs and denominations decided by the government. The RBI acts as the agent for distribution and exchange of coins.

Question 36General Awareness (company, banking and note production context)

A candidate reads that BRBNMPL supplies banknotes to the RBI. Which statement best captures the commercial relationship?

  1. BRBNMPL sells notes directly to the public
  2. BRBNMPL prints notes on the RBI's indent and is paid for the supply Correct answer.
  3. BRBNMPL lends notes to banks at interest
  4. BRBNMPL issues its own currency

Explanation

The RBI places indents on BRBNMPL, which prints and supplies notes under that arrangement and is compensated for the supply. BRBNMPL does not issue currency or deal with the public.

Question 37General Awareness (company, banking and note production context)

Which of these is a reason central banks recall and destroy old-series notes after a new series is introduced?

  1. To standardise security features and reduce counterfeiting risk Correct answer.
  2. To increase the total money supply
  3. To raise the value of each note
  4. To eliminate the need for banks

Explanation

Phasing out old series lets the central bank move the public to notes with improved security features and consistent design, which makes counterfeiting harder. Withdrawal of old notes is about quality and security, not money supply expansion.

Question 38General Awareness (company, banking and note production context)

What does the term 'fit note' mean in currency operations?

  1. A note issued only to foreigners
  2. A note printed in a special colour
  3. A note suitable for continued circulation Correct answer.
  4. A note that has been cancelled

Explanation

Fit notes are those judged clean and intact enough to remain in circulation after sorting. Unfit notes are removed and destroyed.

Question 39General Awareness (company, banking and note production context)

Which of the following is the most direct purpose of a currency chest's verification of note packets received from the RBI?

  1. To assess the credit rating of the RBI
  2. To confirm quantity and detect shortages or tampering Correct answer.
  3. To decide the interest rate on loans
  4. To fix the exchange rate of the rupee

Explanation

Currency chests verify packets against the accompanying advice to confirm quantity and integrity, detecting shortages or tampering early. This protects both the chest and the note supply chain.

Question 40General Awareness (company, banking and note production context)

Which statement about the role of the RBI's Issue Department is accurate?

  1. It manages the issuance of notes and holds the backing assets Correct answer.
  2. It mints coins for the government
  3. It prints banknotes at Mysuru
  4. It regulates stock exchanges

Explanation

The Issue Department is responsible for issuing currency and maintaining the assets that back it, separate from the Banking Department. Printing and minting are handled by other entities.

Question 41General Awareness (company, banking and note production context)

A visually impaired customer asks for help identifying a note. Which feature set is specifically designed for tactile identification on Indian banknotes?

  1. Watermark and latent image
  2. Raised intaglio print and a distinct tactile mark Correct answer.
  3. Microlettering and see-through register
  4. Serial number and signature

Explanation

Indian banknotes include raised intaglio printing and a tactile identification mark in different shapes for different denominations, enabling recognition by touch. Watermarks, latent images and microlettering require sight or tools.

Question 42General Awareness (company, banking and note production context)

Which of the following best describes the function of 'security paper' supplied to a note press?

  1. It is ordinary office paper with a logo
  2. It is used only for stationery in the press office
  3. It carries covert features that make imitation difficult Correct answer.
  4. It is a plastic sheet used for packaging

Explanation

Security paper for banknotes incorporates covert features such as watermarks, embedded threads and fibres that are difficult to replicate. These features support authentication throughout the note's life.

Question 43General Awareness (company, banking and note production context)

In note production, what does 'spoilage' refer to?

  1. The transport of notes to a chest
  2. The exchange of worn notes at a bank
  3. Printed sheets rejected for quality defects Correct answer.
  4. The profit earned on issuing currency

Explanation

Spoilage is the proportion of printed sheets that fail quality checks and must be rejected. Controlling spoilage is a key measure of press efficiency and cost.

Question 44General Awareness (company, banking and note production context)

Which of these would most likely be classified as an 'unfit' note during sorting?

  1. A note with a large tear and heavy soiling Correct answer.
  2. A note that is clean with sharp corners
  3. A note with a minor fold
  4. A note that is slightly limp but intact

Explanation

Notes with large tears, heavy soiling or missing portions are unfit and are removed from circulation. Minor folds or slight limpness may still allow a note to remain fit.

Question 45General Awareness (company, banking and note production context)

Which of the following is a plausible reason for using machine-readable features in banknote design?

  1. To reduce the weight of notes
  2. To let sorting and authentication machines verify notes quickly Correct answer.
  3. To allow notes to be printed at home
  4. To make notes easier to fold

Explanation

Machine-readable features enable high-speed sorters and authentication devices to verify notes and detect counterfeits. They are designed to be read by sensors, not by the naked eye.

Question 46General Awareness (company, banking and note production context)

Which statement correctly distinguishes BRBNMPL from SPMCIL in India's currency supply chain?

  1. BRBNMPL is an RBI subsidiary, while SPMCIL is a government enterprise Correct answer.
  2. SPMCIL is an RBI subsidiary, while BRBNMPL is a government enterprise
  3. Both are subsidiaries of the RBI
  4. Both are private banks

Explanation

BRBNMPL is wholly owned by the RBI, whereas SPMCIL is a Government of India enterprise that operates mints and presses. Both contribute to currency production but under different ownership.

Question 47General Awareness (company, banking and note production context)

What is the main reason banknote inks are formulated with special properties rather than ordinary printing inks?

  1. To make notes soluble in water
  2. To lower the melting point of paper
  3. To resist wear and support authentication features Correct answer.
  4. To make notes smell pleasant

Explanation

Banknote inks are engineered for durability against handling and for security behaviour such as fluorescence or colour shift. Ordinary inks lack these properties.

Question 48General Awareness (company, banking and note production context)

A currency chest notices a persistent mismatch between physical notes and book balances. Which control is most appropriate?

  1. Conduct a reconciliation and report the discrepancy under prescribed procedures Correct answer.
  2. Transfer the difference to a customer account
  3. Adjust the books to match the physical count silently
  4. Ignore the mismatch if it is small

Explanation

Discrepancies must be reconciled and reported through prescribed channels so that shortages or fraud are investigated. Silent book adjustments or transfers would conceal the problem.

Question 49General Awareness (company, banking and note production context)

Which of these statements about the relationship between note quality and public confidence is most accurate?

  1. Only coins affect public confidence
  2. Clean, genuine-looking notes make it easier for the public to spot fakes Correct answer.
  3. Soiled notes improve confidence because they look used
  4. Note quality has no effect on confidence

Explanation

Clean notes with intact security features help the public distinguish genuine currency from counterfeits, supporting trust. Poor-quality notes make authentication harder and erode confidence.

Question 50General Awareness (company, banking and note production context)

Which term describes the process of checking printed sheets for defects before they are cut into individual notes?

  1. Sheet examination Correct answer.
  2. Remittance
  3. Indent
  4. Seigniorage

Explanation

Sheet examination is the inspection stage where printed sheets are checked for printing and paper defects before finishing. Defective sheets are removed as spoilage.