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Question 1Professional Knowledge (Civil / Electrical Engineering)

In concrete technology, the slump test on fresh concrete is primarily used to assess which property?

  1. Permeability of the concrete
  2. Compressive strength of hardened concrete
  3. Durability under aggressive exposure
  4. Workability of the concrete mix Correct answer.

Explanation

The slump test measures the consistency and workability of fresh concrete, helping judge how easily the mix can be placed and compacted. It does not directly measure strength, durability, or permeability, which are assessed on hardened concrete using separate tests.

Question 2Professional Knowledge (Civil / Electrical Engineering)

A saturated soil deposit has its water table at the ground surface. At a depth of 5 m, the saturated unit weight is 20 kN/m³ and the unit weight of water is 10 kN/m³. The effective vertical stress at that depth is:

  1. 100 kPa
  2. 50 kPa Correct answer.
  3. 0 kPa
  4. 150 kPa

Explanation

Total vertical stress equals saturated unit weight times depth, or 20 × 5 = 100 kPa. Pore water pressure equals 10 × 5 = 50 kPa, so effective stress is 100 − 50 = 50 kPa by the principle of effective stress.

Question 3Professional Knowledge (Civil / Electrical Engineering)

As per IS 456 limit state of collapse, the partial safety factors applied to the material strengths of concrete and steel are, respectively:

  1. 1.5 and 1.5
  2. 1.15 and 1.15
  3. 1.5 and 1.15 Correct answer.
  4. 1.15 and 1.5

Explanation

IS 456 adopts a partial safety factor of 1.5 on concrete strength and 1.15 on steel strength for the limit state of collapse. These factors account for material variability, construction tolerances, and design-model uncertainties.

Question 4Professional Knowledge (Civil / Electrical Engineering)

A rectangular channel 5 m wide carries a discharge of 20 m³/s at a flow depth of 2 m. Taking g = 9.81 m/s², the Froude number is closest to:

  1. 0.45 Correct answer.
  2. 0.90
  3. 1.20
  4. 2.20

Explanation

Velocity is Q/(b × y) = 20/(5 × 2) = 2 m/s. For a rectangular channel, hydraulic depth equals flow depth, so Fr = V/√(gy) = 2/√(9.81 × 2) ≈ 0.45, indicating subcritical flow.

Question 5Professional Knowledge (Civil / Electrical Engineering)

On a topographic map, a contour line connects points having the same:

  1. Ground elevation Correct answer.
  2. Magnetic bearing from true north
  3. Soil bearing capacity
  4. Horizontal distance from a benchmark

Explanation

A contour line is an imaginary line on a map joining points of equal ground elevation above a datum. The spacing and shape of contours indicate slope steepness and terrain features, not soil strength or bearing direction.

Question 6Professional Knowledge (Civil / Electrical Engineering)

A 12 V DC source is connected across a 4 Ω resistor. The current through the resistor is:

  1. 48 A
  2. 0.33 A
  3. 3 A Correct answer.
  4. 16 A

Explanation

Ohm’s law gives I = V/R. Substituting V = 12 V and R = 4 Ω gives I = 12/4 = 3 A through the resistor.

Question 7Professional Knowledge (Civil / Electrical Engineering)

A balanced three-phase load draws 10 A per phase at a line voltage of 400 V and power factor 0.8. The total active power is closest to:

  1. 8.0 kW
  2. 3.2 kW
  3. 5.5 kW Correct answer.
  4. 6.9 kW

Explanation

For a balanced three-phase load, active power is P = √3 × V_L × I_L × cos φ. Thus P = √3 × 400 × 10 × 0.8 ≈ 5542 W, which is about 5.5 kW.

Question 8Professional Knowledge (Civil / Electrical Engineering)

In a transformer, which loss is essentially independent of the load current?

  1. Core loss from hysteresis and eddy currents Correct answer.
  2. Copper loss varying with load current
  3. Dielectric loss in the insulation
  4. Stray load loss in the windings

Explanation

Core loss consists of hysteresis and eddy current losses and depends mainly on the applied voltage and frequency, not on load current. Copper loss, by contrast, varies approximately as the square of the load current.

Question 9Professional Knowledge (Civil / Electrical Engineering)

An over-excited synchronous motor operating at no load on an infinite bus will:

  1. Draw lagging current and absorb reactive power
  2. Draw zero current because no mechanical load exists
  3. Draw leading current and supply reactive power Correct answer.
  4. Operate at lagging power factor and reduce voltage

Explanation

Increasing the field excitation of a synchronous motor beyond normal makes it over-excited, so it draws a leading current and supplies reactive power to the bus. It still draws a small active power from the supply to cover no-load losses.

Question 10Professional Knowledge (Civil / Electrical Engineering)

The Buchholz relay in an oil-immersed transformer is used primarily to detect:

  1. External short circuits on the secondary side
  2. Incipient internal faults such as winding insulation failure Correct answer.
  3. Unbalanced load currents in the phases
  4. Overvoltage surges on the transmission line

Explanation

A Buchholz relay is installed in the oil connection between the transformer tank and conservator. It detects gas accumulation or oil surge caused by incipient internal faults such as insulation breakdown, helping protect the transformer before a major fault develops.

Question 11Professional Knowledge (Civil / Electrical Engineering)

In the standard Proctor compaction test, the compaction curve is plotted between dry unit weight and which quantity?

  1. Curing period
  2. Water content Correct answer.
  3. Cement content
  4. Compaction energy

Explanation

The standard Proctor test compacts soil in layers at increasing moisture contents, and dry unit weight is plotted against moulding water content. The peak of the curve gives the optimum moisture content and the maximum dry unit weight for that compaction energy.

Question 12Professional Knowledge (Civil / Electrical Engineering)

A three-phase induction motor is running at its synchronous speed. Its per-unit slip is:

  1. -1.0
  2. 0 Correct answer.
  3. 0.5
  4. 1.0

Explanation

Slip is defined as (Ns - N)/Ns. At synchronous speed N = Ns, so the slip is zero; an induction motor cannot produce torque at exact synchronous speed.

Question 13Professional Knowledge (Civil / Electrical Engineering)

In differential levelling, the staff reading taken on a benchmark of known reduced level before shifting the instrument is called a:

  1. Change point
  2. Backsight Correct answer.
  3. Foresight
  4. Intermediate sight

Explanation

A backsight is the first reading after setting up the instrument, taken on a point of known reduced level such as a benchmark. It establishes the height of instrument for subsequent foresight and intermediate-sight readings.

Question 14Professional Knowledge (Civil / Electrical Engineering)

A simply supported beam of span 6 m carries a uniformly distributed load of 10 kN/m over its entire span. The maximum bending moment is:

  1. 90 kNm
  2. 30 kNm
  3. 45 kNm Correct answer.
  4. 60 kNm

Explanation

For a simply supported beam with a uniformly distributed load, the maximum bending moment is wL²/8. Substituting w = 10 kN/m and L = 6 m gives 10 × 36 / 8 = 45 kNm at midspan.

Question 15Professional Knowledge (Civil / Electrical Engineering)

A transformer has an iron loss of 1 kW and a full-load copper loss of 2 kW. Maximum efficiency occurs at what fraction of full load?

  1. 1.000 of full load
  2. 0.866 of full load
  3. 0.500 of full load
  4. 0.707 of full load Correct answer.

Explanation

Maximum efficiency occurs when the variable copper loss equals the constant iron loss. Since copper loss varies with the square of the load current, the load fraction is sqrt(Pi/Pcu) = sqrt(1/2) = 0.707.

Question 16Professional Knowledge (Civil / Electrical Engineering)

A soil sample has a liquid limit of 45% and a plastic limit of 25%. Its plasticity index is:

  1. 70%
  2. 45%
  3. 20% Correct answer.
  4. 25%

Explanation

The plasticity index is the range of water content over which the soil remains plastic. It is calculated as PI = LL - PL, so here PI = 45 - 25 = 20%.

Question 17Professional Knowledge (Civil / Electrical Engineering)

A shunt generator fails to build up voltage. Which condition must be satisfied for voltage build-up to occur?

  1. The armature resistance is exactly equal to zero ohms
  2. Residual magnetism and field resistance below critical Correct answer.
  3. The series field is connected to oppose the shunt field
  4. The load is completely disconnected from the armature

Explanation

A shunt generator needs residual magnetism in the field poles and a field circuit resistance below the critical resistance at the driven speed. If either condition is absent, the induced emf cannot rise to the normal terminal voltage.

Question 18Professional Knowledge (Civil / Electrical Engineering)

A venturimeter with inlet diameter 200 mm and throat diameter 100 mm carries water under a differential head of 0.2 m. Taking the coefficient of discharge as 1.0 and g = 9.81 m/s², the ideal discharge is closest to:

  1. 32.2 L/s
  2. 8.0 L/s
  3. 16.1 L/s Correct answer.
  4. 64.4 L/s

Explanation

The discharge is Q = A2 sqrt(2gH / (1 - (A2/A1)²)). Here A2/A1 = (100/200)² = 0.25, so Q = 0.007854 × sqrt(3.924 / 0.9375) ≈ 0.0161 m³/s, which is 16.1 L/s.

Question 19Professional Knowledge (Civil / Electrical Engineering)

A 500 kVA, 6600/400 V transformer has a per-unit impedance of 0.05. The symmetrical short-circuit current on the 400 V side for a bolted short circuit is closest to:

  1. 7.2 kA
  2. 14.4 kA Correct answer.
  3. 1.44 kA
  4. 28.9 kA

Explanation

The rated low-voltage current is 500,000 / (√3 × 400) ≈ 721.7 A. The short-circuit current equals rated current divided by per-unit impedance, so 721.7 / 0.05 ≈ 14,434 A, or about 14.4 kA.

Question 20Professional Knowledge (Civil / Electrical Engineering)

In a capacitor-start single-phase induction motor, what is the main function of the capacitor in the auxiliary winding circuit?

  1. To create a phase difference between winding currents Correct answer.
  2. To provide direct-current excitation to the squirrel-cage rotor
  3. To increase the effective rotor resistance during starting
  4. To reduce the supply frequency applied to the auxiliary winding

Explanation

The capacitor makes the auxiliary winding current lead the main winding current, producing a phase difference close to 90 electrical degrees. This creates a rotating magnetic field at starting and develops starting torque.

Question 21Professional Knowledge (Civil / Electrical Engineering)

In concrete mix design, the water–cement ratio is primarily selected to satisfy which requirement?

  1. Workability of the mix
  2. Grading of coarse aggregate
  3. Duration of curing
  4. Strength and durability Correct answer.

Explanation

Abrams' law shows that concrete strength falls as the water–cement ratio rises, and durability also requires a low ratio to limit permeability. Workability is adjusted mainly through water content, aggregate grading, and admixtures rather than by choosing the water–cement ratio alone.

Question 22Professional Knowledge (Civil / Electrical Engineering)

A DC shunt motor is running at no load. If its field circuit is accidentally opened, the motor will most likely:

  1. stop immediately
  2. draw zero armature current
  3. overspeed dangerously Correct answer.
  4. reverse its direction

Explanation

Loss of field flux reduces back emf, so the armature current and speed rise sharply; a shunt motor can reach runaway speed at light load. Protection against field failure is therefore important.

Question 23Professional Knowledge (Civil / Electrical Engineering)

In a closed traverse with n sides, the theoretical sum of the included angles is:

  1. 90° × (n − 2)
  2. 180° × (n − 2) Correct answer.
  3. 360° × (n − 1) + 90°
  4. 180° × n

Explanation

The interior angles of a closed polygon with n sides sum to (n − 2) × 180°, which is the standard angular check before traverse adjustment. This relation follows directly from dividing the polygon into n − 2 triangles.

Question 24Professional Knowledge (Civil / Electrical Engineering)

The coefficient of consolidation (cv) of a clay sample in an oedometer test is commonly determined using:

  1. vane shear testing
  2. direct shear box testing
  3. log-time curve fitting Correct answer.
  4. standard Proctor testing

Explanation

The coefficient of consolidation is obtained from the time–settlement curve of an oedometer test, commonly by Casagrande's logarithm-of-time method or Taylor's root-time method. The vane shear and direct shear tests measure strength, while the Proctor test measures compaction.

Question 25Professional Knowledge (Civil / Electrical Engineering)

A 3-phase, 4-pole, 50 Hz induction motor runs at 1440 r/min. The frequency of the rotor currents is:

  1. 50 Hz
  2. 48 Hz
  3. 2 Hz Correct answer.
  4. 4 Hz

Explanation

Synchronous speed is 120f/P = 120 × 50/4 = 1500 r/min, so slip is (1500 − 1440)/1500 = 0.04. Rotor frequency equals slip times stator frequency, giving 0.04 × 50 = 2 Hz.

Question 26Professional Knowledge (Civil / Electrical Engineering)

A transformer has per-unit resistance 0.01 and per-unit reactance 0.05. At full load and 0.8 power factor lagging, its approximate voltage regulation is:

  1. 5.0%
  2. 3.8% Correct answer.
  3. 4.2%
  4. 2.6%

Explanation

Approximate regulation is r cos φ + x sin φ for lagging power factor, so 0.01 × 0.8 + 0.05 × 0.6 = 0.038 per unit. This equals 3.8% at full load.

Question 27Professional Knowledge (Civil / Electrical Engineering)

A propped cantilever of span L carries a concentrated load W at midspan. The reaction at the prop is:

  1. 5W/16 Correct answer.
  2. W/2
  3. 11W/16
  4. 3W/8

Explanation

Using compatibility, the downward deflection at the prop due to W at midspan is 5WL³/(48EI), and the upward deflection due to prop reaction R is RL³/(3EI). Equating these gives R = 5W/16, with the fixed end carrying the remaining 11W/16.

Question 28Professional Knowledge (Civil / Electrical Engineering)

A 220 kV, 3-phase transmission line has a surge impedance of 400 Ω. Its surge impedance loading is approximately:

  1. 55 MW
  2. 400 MW
  3. 121 MW Correct answer.
  4. 220 MW

Explanation

Surge impedance loading is V_L²/Z_s when V_L is in kV and Z_s in ohms, giving MW directly. Here 220²/400 = 121 MW, the power at which the line's reactive generation and absorption balance.

Question 29Professional Knowledge (Civil / Electrical Engineering)

In highway soil classification, the group index (GI) of a subgrade soil is used mainly to:

  1. Determine the compaction energy needed in the field
  2. Measure the permeability of the subgrade soil
  3. Compute the shear strength of the subgrade soil
  4. Rate subgrade quality for pavement design Correct answer.

Explanation

The group index combines plasticity, liquid limit, and gradation to give a numerical rating of subgrade quality; higher values indicate poorer soil. Highway agencies use it in pavement-thickness design, not as a direct measure of permeability or shear strength.

Question 30Professional Knowledge (Civil / Electrical Engineering)

In a moving-iron instrument, the deflecting torque is proportional to which quantity?

  1. The square of the current Correct answer.
  2. The inverse of the current
  3. The rate of change of current
  4. The current

Explanation

A moving-iron instrument develops torque proportional to the square of the current (or voltage), so its scale is non-uniform and it responds to the RMS value. This makes it suitable for AC measurements but not for a linear current scale.

Question 31Professional Knowledge (Civil / Electrical Engineering)

In concrete construction, the slump test on fresh concrete is used mainly to assess which property?

  1. Compressive strength after 28 days
  2. Permeability of the hardened concrete
  3. Durability under sulphate attack
  4. Workability and consistency of the mix Correct answer.

Explanation

The slump test measures the consistency and workability of fresh concrete by observing the settlement of a moulded cone under its own weight. It gives no direct measurement of hardened properties such as strength, durability, or permeability, which require separate tests on cured specimens.

Question 32Professional Knowledge (Civil / Electrical Engineering)

The shunt branch in the equivalent circuit of a practical transformer represents which effect?

  1. Load current referred to the primary side
  2. Core loss and magnetising current Correct answer.
  3. Winding resistance and leakage reactance
  4. Copper loss under short-circuit test conditions

Explanation

The shunt branch carries the no-load current, whose active component supplies hysteresis and eddy-current core loss while the reactive component magnetises the core. Series impedance, by contrast, represents winding resistance and leakage reactance.

Question 33Professional Knowledge (Civil / Electrical Engineering)

In the Bowditch rule used to adjust a closed traverse, the correction applied to each latitude and departure is proportional to which quantity?

  1. The total closing error divided equally among all sides
  2. The length of that side divided by the traverse perimeter Correct answer.
  3. The sine of the bearing of that line
  4. The included angle at the station at the end of that line

Explanation

The Bowditch, or compass, rule distributes the closing error in proportion to the length of each traverse leg relative to the total perimeter. This assumes that the angular and linear errors are distributed uniformly along the survey lines.

Question 34Professional Knowledge (Civil / Electrical Engineering)

A fixed beam of span L carries a concentrated load W at midspan. The fixed-end moment developed at each support is:

  1. WL/12
  2. WL/16
  3. WL/8 Correct answer.
  4. WL/4

Explanation

For a prismatic fixed beam with a central point load, symmetry produces equal fixed-end moments of WL/8 at both supports. The resulting support moment is hogging, while the midspan sagging moment is WL/8.

Question 35Professional Knowledge (Civil / Electrical Engineering)

A 6-pole, 50 Hz, three-phase induction motor runs at a full-load slip of 4%. Its rotor speed is:

  1. 1200 r/min
  2. 960 r/min Correct answer.
  3. 1000 r/min
  4. 900 r/min

Explanation

The synchronous speed is Ns = 120f/P = 120 × 50/6 = 1000 r/min. With a slip of 0.04, the rotor speed is N = (1 − s)Ns = 0.96 × 1000 = 960 r/min.

Question 36Professional Knowledge (Civil / Electrical Engineering)

A saturated soil has void ratio e = 0.60 and specific gravity of solids Gs = 2.70. Taking γw = 9.81 kN/m³, its saturated unit weight is closest to:

  1. 21.6 kN/m³
  2. 18.4 kN/m³
  3. 19.1 kN/m³
  4. 20.2 kN/m³ Correct answer.

Explanation

For a saturated soil, γsat = (Gs + e)γw/(1 + e). Substituting gives (2.70 + 0.60) × 9.81/(1 + 0.60) = 20.23 kN/m³, which is closest to 20.2 kN/m³.

Question 37Professional Knowledge (Civil / Electrical Engineering)

In a two-wattmeter measurement on a balanced three-phase load, the wattmeter readings are 5 kW and 1 kW. The load power factor is approximately:

  1. 0.75 lagging
  2. 0.66 lagging Correct answer.
  3. 0.50 lagging
  4. 0.87 lagging

Explanation

For the two-wattmeter method, tan φ = √3(W1 − W2)/(W1 + W2). Here tan φ = √3 × 4/6 = 1.155, giving φ ≈ 49.1° and power factor cos φ ≈ 0.66.

Question 38Professional Knowledge (Civil / Electrical Engineering)

Water flows in a rectangular channel at a uniform depth of 1.0 m with a discharge per unit width of 2.0 m²/s. Taking g = 9.81 m/s², the Froude number is closest to:

  1. 0.45
  2. 0.80
  3. 0.64 Correct answer.
  4. 0.32

Explanation

The velocity is V = q/y = 2.0/1.0 = 2.0 m/s. The Froude number is Fr = V/√(gy) = 2.0/√(9.81 × 1.0) ≈ 0.64, indicating subcritical flow.

Question 39Professional Knowledge (Civil / Electrical Engineering)

A two-hinged parabolic arch of span 40 m and rise 8 m carries a uniformly distributed load of 20 kN/m over its entire span. The horizontal thrust at each hinge is:

  1. 500 kN Correct answer.
  2. 250 kN
  3. 400 kN
  4. 800 kN

Explanation

For a parabolic two-hinged arch under a full-span uniform load, the horizontal thrust is H = wL²/(8h). Substituting w = 20 kN/m, L = 40 m, and h = 8 m gives H = 20 × 1600/64 = 500 kN.

Question 40Professional Knowledge (Civil / Electrical Engineering)

A three-phase, 50 Hz, 4-pole alternator has 48 stator slots and a coil span of 10 slots. The fundamental pitch factor of the winding is:

  1. 0.985
  2. 0.500
  3. 0.866
  4. 0.966 Correct answer.

Explanation

The pole pitch is 48/4 = 12 slots, so the coil is short-pitched by 2 slots. The chording angle is 2 × 180°/12 = 30° electrical, and the fundamental pitch factor is cos(30°/2) = cos 15° ≈ 0.966.

Question 41General Awareness

The Reserve Bank of India commenced operations on 1 April 1935. Its creation was recommended by which body?

  1. Hilton Young Commission Correct answer.
  2. Fowler Committee
  3. Chamberlain Commission
  4. Narasimham Committee

Explanation

The Hilton Young Commission, formally the Royal Commission on Indian Currency and Finance appointed in 1926, recommended setting up a central bank for India. Its recommendation led to the RBI Act, 1934, and the Bank began operations on 1 April 1935. The Fowler Committee of 1898 and the Chamberlain Commission of 1913 dealt with currency and gold-exchange arrangements rather than the creation of a central bank.

Question 42General Awareness

Which section of the Reserve Bank of India Act, 1934 confers on the RBI the sole right to issue banknotes in India?

  1. Section 22 Correct answer.
  2. Section 24
  3. Section 17
  4. Section 42

Explanation

Section 22 of the RBI Act, 1934 gives the Reserve Bank the sole right to issue banknotes in India, which is why no other authority can put notes into circulation. Section 24 deals with denominations of notes, while Section 42 governs the cash reserves that scheduled banks must maintain with the RBI.

Question 43General Awareness

In Indian monetary policy, the rate at which the RBI lends short-term funds to banks against the collateral of government securities is called the:

  1. reverse repo rate
  2. bank rate
  3. repo rate Correct answer.
  4. Marginal Standing Facility rate

Explanation

The repo rate is the policy rate at which banks borrow overnight or short-term funds from the RBI by selling government securities with an agreement to repurchase them. The reverse repo is the rate at which the RBI absorbs liquidity from banks, and the MSF is a penal window priced above the repo rate. The bank rate is a longer-term rate applied without collateral.

Question 44General Awareness

Other things being equal, an increase in the cash reserve ratio (CRR) is most likely to:

  1. lower the interest rate on bank loans
  2. leave total bank credit unchanged
  3. raise the volume of funds that banks have available for lending
  4. reduce the funds banks have available for lending Correct answer.

Explanation

CRR is the share of net demand and time liabilities that a bank must hold as cash with the RBI, so a higher ratio locks up a larger part of deposits and shrinks the resources available for lending. This contraction in lendable funds tends to make credit tighter and loans costlier. Options claiming unchanged credit or cheaper loans contradict this transmission mechanism.

Question 45General Awareness

Under India's flexible inflation targeting framework, the RBI's inflation target is set in terms of which measure?

  1. Wholesale Price Index inflation
  2. Consumer Price Index (Combined) inflation Correct answer.
  3. GDP deflator
  4. Consumer Price Index for Industrial Workers

Explanation

The monetary policy framework agreement and the RBI Act amendment of 2016 make CPI (Combined) inflation the nominal anchor, with a target of 4 per cent and a tolerance band of 2 to 6 per cent. WPI and CPI-IW are widely tracked price indices, but they are not the measure against which the target is defined. The GDP deflator is a broader national accounts concept and plays no role in the target.

Question 46General Awareness

The Unified Payments Interface (UPI) is operated by which organisation?

  1. SWIFT
  2. the Securities and Exchange Board of India
  3. the Reserve Bank of India's Department of Payment and Settlement Systems
  4. the National Payments Corporation of India Correct answer.

Explanation

The National Payments Corporation of India, an umbrella organisation promoted by banks under RBI guidance, develops and runs UPI along with systems such as IMPS and RuPay. The RBI itself operates RTGS and NEFT, SEBI regulates securities markets, and SWIFT is a Belgium-based cross-border messaging network.

Question 47General Awareness

For scheduled commercial banks in India, the overall priority sector lending target is:

  1. 40 per cent of adjusted net bank credit Correct answer.
  2. 75 per cent of adjusted net bank credit
  3. 25 per cent of adjusted net bank credit
  4. 18 per cent of adjusted net bank credit

Explanation

RBI's priority sector guidelines require scheduled commercial banks to lend 40 per cent of adjusted net bank credit, or the credit equivalent of off-balance-sheet exposure, whichever is higher. Within this overall target there are sub-targets such as 18 per cent for agriculture and 7.5 per cent for micro enterprises. The smaller and larger figures in the other options do not correspond to the overall requirement.

Question 48General Awareness

Under the Foreign Exchange Management Act, 1999, which replaced FERA, 1973, the regulatory approach to foreign exchange transactions is best described as:

  1. capital account transactions are freely permitted without limit or condition
  2. current account transactions are largely free; capital account transactions are regulated Correct answer.
  3. current account transactions are prohibited unless a specific licence is obtained from the RBI
  4. every foreign exchange transaction requires prior approval of the RBI

Explanation

FEMA shifted India from the punitive, control-oriented FERA regime to a management approach in which current account transactions such as trade payments and remittances are generally permitted, while capital account transactions are allowed only to the extent specified by rules. This is also why contraventions under FEMA attract civil penalties rather than criminal prosecution.

Question 49General Awareness

The Statutory Liquidity Ratio requires banks to hold a specified portion of their net demand and time liabilities in which form?

  1. gold holdings only
  2. foreign currency deposits maintained with the Reserve Bank of India
  3. cash holdings only
  4. cash, gold or unencumbered approved securities Correct answer.

Explanation

SLR is maintained in the form of cash, gold and unencumbered approved securities such as government bonds, and the ratio is notified by the RBI under the Banking Regulation Act, 1949. It is distinct from CRR, which must be kept solely as cash balances with the RBI. Restricting SLR to a single asset would defeat the purpose of the requirement.

Question 50General Awareness

The committee whose recommendation led to the establishment of NABARD in 1982 was chaired by whom?

  1. C. Rangarajan
  2. M. Narasimham
  3. B. Sivaraman Correct answer.
  4. Sukhamoy Chakravarty

Explanation

NABARD was set up in July 1982 on the recommendation of the committee chaired by B. Sivaraman, constituted to review institutional credit arrangements for agriculture and rural development. Narasimham chaired the committees on financial system reforms, Chakravarty the committee on the monetary system, and Rangarajan the committee on balance of payments.