JAIIB Crash Course May 2025 IE and IFS Quiz-1

02/05/2025

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JAIIB Crash Course May 2025 IE and IFS Quiz-1

JAIIB CAIIB Course Quiz – May 2025: The JAIIB exam for May 2025, conducted by IIBF, is fast approaching. To support your preparation, we are providing regular MCQ-based quizzes specifically designed for the JAIIB CAIIB syllabus. These quizzes are structured module-wise and unit-wise to help you cover the entire syllabus systematically. Practicing these quizzes consistently will strengthen your concepts, improve accuracy, and increase your chances of clearing the exam on your first attempt.

Q.1. Which of the following is not a classification of economy as per capita income by World Bank?
a. Low income
b. Lower income
c. Upper middle income
d. Higher income

Q.2. Which of the following is not a factor of Indian economy?
a. low per capita real income
b. rapid population growth
c. a high rate of unemployment
d. excessive reliance on the secondary sector

Q.3. Who was mentioned India the brightest jewel in the British Crown and the poorest country in the world, in terms of per capita income?
a. Dadabhai Naorji
b. VKRV Rao
c. Manmohan Singh
d. Curzon

Q.4. Planning that focuses on influencing the distribution of people and activities in geographical areas is known as:
A) Sectoral Planning
B) Spatial Planning
C) Decentralized Planning
D) Regional Planning

Q.5. Which of the following targets has India set to achieve by 2070?
A) Achieving a renewable energy capacity of 500 GW.
B) Reducing the carbon intensity of its economy by 45%.
C) Achieving net-zero emissions.
D) Reducing total projected carbon emissions by one billion tonnes

Q.6. Which of the following was the first bank to issue a green bond in India?
A) Indian Renewable Energy Development Agency Ltd. (2017, 2019)
B) Yes Bank Ltd. (2015)
C) State Bank of India (2016)
D) HDFC Bank (2018)

Q.7. Which of the following is true about the unorganized sector?
A) Workers are guaranteed social security and have fixed job terms
B) Enterprises in this sector are registered with the government
C) It consists of low-wage, unstable, and irregular work, with no protection from legislation or trade unions
D) It is a high-wage sector with stable employment

Q.8. What are “plan holidays” in the context of India’s economic planning?
A) Periods when no economic planning occurs
B) Annual plans introduced during unusual years like wars or crises
C) Celebratory intervals marking the completion of five-year plans
D) Temporary halts in economic growth initiatives

Q.9. According to the amendments in the Companies Act, 2013, how can companies handle the excess amount spent on CSR beyond the mandated 2% of their net profits?
A) The excess amount must be refunded to the government
B) Companies can carry forward the excess amount to future CSR initiatives
C) Companies are not allowed to spend more than the mandated 2%
D) The excess amount can be set off against future CSR expenditures

Q.10. Which five years plan is known as Mahalanobis plan?
a. First five years plan (1951-56)
b. Second five years plan (1956-61)
c. Third five years plan (1961-66)
d. 3 Annual Plan (1966-69)

Q.11. At the COP26 meeting, India announced the ‘One Sun, One World, One Grid’ (OSOWOG) initiative. What is the primary objective of OSOWOG?
A) To promote energy efficiency through the use of renewable sources like wind and geothermal energy.
B) To create a global grid for harnessing solar energy and delivering electricity to regions where it is most needed.
C) To replace all fossil fuel-based energy systems with solar power by 2030.
D) To establish a unified policy framework for energy sharing between developed and developing nations.

Q.12. What does the term “jobless growth” refer to in economics?
A) Economic growth accompanied by proportional employment growth.
B) Economic growth with stagnant or declining employment levels.
C) Economic stagnation with high employment growth.
D) Economic decline with proportional employment decline.

Q.13. Which of the following statements explains the potential impact of in-migration on the environment at the destination?
A) In-migration leads to better management of local natural resources.
B) In-migration can result in overexploitation of natural resources and accelerate environmental degradation.
C) In-migration does not have any significant impact on the environment.
D) In-migration always reduces environmental pressures at the destination.

Q.14. The Quinary Sector includes activities involving:
A) Farming and mining
B) Decision-making by top-level executives in government and corporations
C) Retail and customer service
D) Teaching and healthcare

Q.15. What does the Index of Industrial Production (IIP) measure?
A) The change in the volume of production in a given year in sectors such as mining, manufacturing, and electricity
B) The growth of only the manufacturing sector in India
C) The performance of the agricultural sector in India
D) The index of economic growth for the entire Indian economy

Q.16. Scientists have recommended that global emissions must be reduced by 45% by 2030, compared to 2010 levels, to limit global warming to 1.5°C. However, based on current national commitments, global emissions are projected to:
A) Decline by 45%, achieving the target.
B) Remain unchanged, posing no additional threat.
C) Increase by almost 14%, undermining the 1.5°C target.
D) Decrease slightly, but fall short of the 45% reduction goal

Q.17. What is the primary difference between chronic unemployment and under-employment?
A) Chronic unemployment refers to temporary joblessness, whereas under-employment occurs when individuals work in positions below their skills or capacity.
B) Chronic unemployment is long-term and persistent joblessness, while under-employment refers to working fewer hours or jobs that do not match skills or education.
C) Chronic unemployment refers to individuals not seeking jobs, whereas under-employment occurs only in rural areas.
D) Chronic unemployment is caused by lack of education, while under-employment is caused by lack of opportunities in skilled industries.

Q.18. Which of the following is correct:
A) SDG 2: No Poverty
B) SDG 1: Zero Hunger
C) SDG 9: Decent Work and Economic Growth
D) SDG 10: Reduced Inequalities

Q.19. Which sector includes all economic activities that produce services, such as education, healthcare, banking, and communication, and forms the basis of a service-based economy?
A) Primary Sector
B) Secondary Sector
C) Tertiary Sector
D) Quaternary Sector

Q.20. Under the Foreign Trade Policy, which export category through courier or foreign post office is eligible for MEIS benefits for values up to INR 25,000?
A. Heavy machinery and electronics
B. Processed foods and pharmaceuticals
C. Handloom products, books/periodicals, leather footwear, toys, and customized fashion garments
D. Automobiles and engineering goods

Q.21. Which of the following reflects NITI Aayog’s approach to addressing cross-sectoral and cross-departmental issues in development planning?
A) Relying solely on directives from central ministries
B) Establishing a forum for collaboration and expedited implementation
C) Creating independent plans for each sector without integration
D) Delegating such issues entirely to state governments

Q.22. Which of the following best describes the transition from the General Agreement on Tariffs and Trade (GATT) to the World Trade Organization (WTO)?
A) The GATT was replaced by the WTO, which aimed to regulate only agricultural trade, leaving non-agricultural sectors to be handled by regional agreements.
B) The GATT set the rules for international trade from 1948 to 1994, and was succeeded by the WTO, which expanded the scope of trade governance to include services, intellectual property, and dispute resolution.
C) The GATT was a temporary agreement, and the WTO was formed to consolidate global economic power under a single trade regulator.
D) The GATT ceased to exist in 1994 and was replaced by bilateral trade agreements between countries, with no successor organization.

Q.23. Which of the following best describes a “sunrise sector”?
A) A sector that is fully developed and has limited growth potential
B) A sector in its infancy with the potential for significant growth
C) A sector that only focuses on past technologies
D) A sector with a low degree of innovation and public awareness

Q.24. What is Brownfield FDI?
A. Investment in new ventures or startups in a foreign country
B. Investment in an existing firm or company in a foreign country
C. Investment in public sector companies
D. Investment in non-profit organizations abroad

Q.25. Under the Export Promotion Capital Goods (EPCG) scheme, what was the reduction in the export obligation if capital goods were purchased from domestic producers?
A. 50%
B. 60%
C. 75%
D. 100%

Q.26. Which of the following comes under the category of Home charges?

Dividends to East India Company shareholders
Interest on loans raised by the Government of India in England
Expenditure on British army stationed in India and bringing them to India
Pensions, annuities, etc., of retired British officers
a. All are correct
b. 1 to 3
c. 2 to 4
d. 1, 3 & 4

Q.27. What was the first legislative measure in India to directly address the issue of water pollution and conservation?
A. The Environment Protection Act, 1986
B. The Air (Prevention and Control of Pollution) Act, 1981
C. The Water (Prevention and Control of Pollution) Act, 1974
D. The Forest Conservation Act, 1980

Q.28. What are the two main hubs of NITI Aayog?
A) Development and Planning
B) Strategy and Execution
C) Team India and Knowledge and Innovation
D) Policy Analysis and Resource Management

Q.29. Which of the following best describes the role of the International Finance Corporation (IFC)?
A) It focuses on financing government-led infrastructure projects in developed countries.
B) It provides loans exclusively to private-sector enterprises in advanced economies.
C) It encourages private sector investment in developing nations to alleviate poverty and improve lives, with a focus on financing private-sector initiatives.
D) It mainly regulates international trade policies and enforces global financial standards.

Q.30. What was the purpose of the banking reforms introduced in 1992, such as the progressive reduction of CRR and SLR, and mergers and amalgamations?
A. To enhance credit delivery and improve liquidity
B. To discourage foreign investment in Indian banks
C. To focus only on rural credit delivery systems
D. To limit competition in the banking sector

Q.31 The Foreign Trade Policy (FTP) 2015-20 introduced two new schemes to promote exports. Which of the following correctly matches these schemes with their objectives?
(a) MEIS for promoting service exports and SEIS for promoting merchandise exports
(b) MEIS for exporting defined products to designated destinations and SEIS for promoting exports of designated services
(c) MEIS for promoting agricultural exports and SEIS for promoting industrial exports
(d) MEIS for promoting infrastructure exports and SEIS for promoting technology exports

Q.32 What is the main goal of the A Scheme for Promotion of Innovation, Rural Industries & Entrepreneurship (ASPIRE)?
(a) Focus on large-scale industrial production
(b) Create new jobs, reduce unemployment, and promote entrepreneurship culture
(c) Provide direct financial assistance to startups in urban areas
(d) Support only export-driven industries

Q.33 What is the primary purpose of the International Centre for Settlement of Investment Disputes (ICSID), founded in 1966?
(a) To regulate global trade agreement
(b) To provide loans to multinational corporations
(c) To mediate and resolve legal disputes between international investors and states
(d) To monitor the implementation of environmental policies

Q.34 What is the purpose of the ‘Tarang Sanchar’ web portal launched by the Department of Telecommunication?
(a) To track telecom revenue generation
(b) To share information on mobile towers and electromagnetic field (EMF) emissions
(c) To regulate broadband services across India
(d) To provide guidelines for setting up telecom infrastructure

Q.35 What is the primary goal of the PM Gati Shakti – National Master Plan for Multi-modal Connectivity?
(a) To promote digital payments across ministries
(b) To integrate 16 ministries for coordinated planning and implementation of infrastructure connectivity projects
(c) To enhance rural employment through digital platforms
(d) To develop smart cities with a focus on sustainability

Q.36 Which scheme was introduced to merge multiple export incentive schemes, such as the Focus Product Scheme, Focus Market Scheme, and Vishesh Krishi Gram Udyog Yojana (VKGUY), into a single scheme with simplified conditions?
(a) Special Economic Zone Scheme (SEZS)
(b) Merchandise Export from India Scheme (MEIS)
(c) Duty-Free Import Authorization Scheme (DFIA)
(d) Export Promotion Capital Goods Scheme (EPCG)

Q.37 When was the term “Priority Sector” first introduced in the context of bank lending in India?
(a) December 23, 1967
(b) December 14, 1967
(c) January 1, 1968
(d) July 19, 1969

Q.38 Who was coined the first three decades of growth of India as ‘Hindu rate of growth’?
(a) Manmohan Singh
(b) Raj Kishore
(c) JL Nehru
(d) Narasimham

Q.39 Which of the following is NOT considered part of hard infrastructure?
(a) Roads and highways
(b) Airports
(c) Financial institutions
(d) Pipelines

Q.40 How does the World Trade Organization describe globalization?
(a) The reduction of environmental regulations across borders.
(b) The development towards unrestricted cross-border flows of goods, services, capital, and labor force.
(c) The promotion of cultural homogeneity across countries.
(d) The establishment of regional trade blocks.

Q.41 What is the role of Special Drawing Rights (SDRs) in the international monetary system?
(a) SDRs serve as a currency issued by the IMF to replace member countries’ currencies.
(b) SDRs are a supplementary international reserve asset that can be exchanged for freely usable currencies of IMF members.
(c) SDRs are claims on the IMF directly for obtaining financial aid.
(d) SDRs are used exclusively to regulate exchange rates among IMF member countries.

Q.42 Which of the following were introduced as part of banking sector reforms in India?

Lok Adalats
Debt Recovery Tribunals
Asset Reconstruction Companies
SARFAESI
(a) 1, 2, and 3 only
(b) 2, 3, and 4 only
(c) 1, 3, and 4 only
(d) All of the above

Q.43 What is the primary purpose of government-enacted protectionist laws during deglobalisation?
(a) To increase dependency on foreign markets.
(b) To support home producers and workers against foreign competition.
(c) To encourage international collaboration in trade.
(d) To promote the unrestricted flow of global goods and services.

Q.44 Quaternary Sector, also known as the ‘knowledge’ sector, includes which of the following activities?
(a) Agriculture and fishing
(b) Teaching and research
(c) Manufacturing and construction
(d) Banking and retail

Q.45 What is the total Priority Sector Lending (PSL) target for Small Finance Banks (SFBs)?
(a) 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE), whichever is higher
(b) 50% of ANBC or CEOBE, whichever is higher
(c) 75% of ANBC or CEOBE, whichever is higher
(d) 60% of ANBC or CEOBE, whichever is higher

Q.46 Which of the following is NOT one of the four pillars of the Make in India initiative?
(a) New Processes
(b) New Policies
(c) New Infrastructure
(d) New Mind-set

Q.47 What is one of the key functions of the IMF related to its member countries’ economic policies?
(a) Enforcing trade agreements among member nations
(b) Supervising and reviewing members’ compliance with economic policies
(c) Regulating international stock markets
(d) Imposing sanctions on non-complying nations

Q.48 What does the term “deglobalisation” primarily refer to?
(a) The reduction of dependency and integration among global units.
(b) Increasing interconnectedness among countries through trade and investment.
(c) Expanding international trade and cross-border collaboration.
(d) Encouraging unrestricted flow of goods, services, and people.

Q.49 According to Jagdish Bhagwati, what were the key reasons behind India’s economic failure prior to the 1991 reforms?
(a) Strong bureaucratic controls over production, investment, and trade
(b) Inward-looking trade and foreign investment policies
(c) Inefficient functioning of public-sector enterprises
(d) Excessive focus on globalization

Q.50 Which of the following currencies is not included in the SDR basket?
(a) US dollar
(b) Euro
(c) Japanese yen
(d) Swiss franc

Q.51 The 1991 Economic Reforms in India were introduced due to which of the following factors?

Adverse balance of payments
Poor performance of the public sector
Drop in foreign exchange reserves
Large government debts
Inflationary pressure
Stringent conditions laid down by the World Bank and IMF
(a) 1, 2, 3, and 5 only
(b) 2, 3, 4, and 6 only
(c) 1, 3, 4, 5, and 6 only
(d) All of the above

Q.52 The Verma Committee, set up in 1998, focused on which of the following?
(a) Review of weak banks
(b) Review of bank supervision
(c) Harmonization of the role of FIs and banks
(d) Monetary policy

Q.53 Which committee was set up in 1985 to review India’s monetary policy?
(a) Narsimham Committee-I
(b) Padmanabhan Committee
(c) Chakaravarti Committee
(d) Verma Committee

Answer:

Q1: B
Q2: D
Q3: C
Q4: B
Q5: C
Q6: B
Q7: C
Q8: B
Q9: C
Q10: B
Q11: B
Q12: B
Q13: B
Q14: B
Q15: A
Q16: C
Q17: B
Q18: D
Q19: C
Q20: C
Q21: B
Q22: B
Q23: B
Q24: B
Q25: C
Q26: A
Q27: C
Q28: C
Q29: C
Q30: A
Q31: B
Q32: B
Q33: C
Q34: B
Q35: B
Q36: B
Q37: B
Q38: B
Q39: C
Q40: B
Q41: B
Q42: A
Q43: B
Q44: B
Q45: C
Q46: B
Q47: B
Q48: A
Q49: A
Q50: D
Q51: D
Q52: A
Q53: C