Guidelines

Under this part, you will find the previous year’s questions that were asked in
decision-making section of NABARD Grade A.
This document includes 3 sections:
Section A: Contains the previous year's questions asked in the NABARD Grade A
exam, allowing you to test your knowledge across various concepts. The questions
are categorized according to different examinations for easy reference.
Section B: Provides the answer key for all the questions, facilitating the checking
of marks and understanding of performance.
Section C: Offers detailed explanations for each question, aiding in a
comprehensive understanding of the concepts tested.

Note:
The Questions given in this document are memory-based and small variation is
expected compared to real examination.
We suggest our students not go into the variation part and try to analyze the
question in a holistic way to get the maximum benefit from the sheet.
 Part I - Section A

Questions asked in Phase 1 of the NABARD Grade A exam, from 2021 onwards

Q.1 Consider the consumer making a purchase decision in a particular product category for the
very first time. In this situation, it would be possible for the consumer to make the purchase
decision using which of the following decision processes? NABARD Grade A – Phase 1 – 2021
Options:
A. Programmed Decision Making
B. Non-Programmed Decision Making
C. Routine Decision Making
D. Policy Decision Making
E. None of the Above

Q.2 The process whereby a manager shares his work and authority with his subordinates
is________. NABARD Grade A – Phase 1 – 2021
Options:

A. Decentralization
B. Responsibility.
C. Delegation
D. Decision Making
E. None of Above

Q.3 Which of the following scenarios best illustrates the concept of the working backward
heuristic? NABARD Grade A – Phase 1 – 2021
Options:

A. When you lose your keys, you begin to scour your dorm room because you know that you
will eventually find them that way.
B. When creating a presentation for class, you judge how close you are to finishing by looking
at the quality of your presentation so far.
C. In order to efficiently solve a crossword puzzle, you meticulously inspect each of the
“across” questions and each of the “down” questions.
D. To organize documents in your computer, you create an “All Documents” folder and
proceed to subdivide it into increasingly specific folders.
E. None of Above

Q.4 __________ illustrates that 80% of effects arise from 20% of the causes – or 20% of your
actions/activities will account for 80% of your results/outcomes. NABARD Grade A – Phase 1
– 2021
Options:
A. Pareto Analysis
B. Heuristics
C. Conjoint analysis
D. Cost/Benefit Analysis
E. None of the above

Q.5 Decision-making is one of the basic _______ processes of human behaviors by which a
preferred option or a course of action is chosen from among a set of alternatives based on
certain criteria. NABARD Grade A – Phase 1 – 2021
Options:
A. Cognitive
B. Tactical
C. Operational
D. Strategic
E. None of the above

Q.6 It is a systematic process that businesses use to analyze which decisions to make and which
to forgo. It sums the potential rewards expected from a situation or action and then subtracts
the total costs associated with taking that action. NABARD Grade A – Phase 1 – 2021
Options:
A. Conjoint analysis
B. Cost Benefit Analysis
C. Heuristic methods
D. Paired Comparison Analysis
E. None of the above
Q.7 A manager is considering purchasing new computers for her department. The manager
spends time assessing the computers her department now has. Which stage of the decision-
making process is she going through? NABARD Grade A – Phase 1 – 2021
Options:
A. Identification of a problem
B. Identification of decision criteria
C. Development of alternatives
D. implementation of an alternative
E. None of the above

Q.8 The bounded rationality model is best defined by which of the following statements?
NABARD Grade A – Phase 1 – 2021
Options:
A. All the possible information about the problem is known.
B. Decisions are made only with future outcomes in mind.
C. It is an ideal approach to decision-making.
D. Decision makers strive to make the most rational decisions but understand there are
boundaries.
E. None of the above

Q.9 What do you call a style of leadership that doesn’t take account of others' views, opinions,
and ideas during decision-making? NABARD Grade A – Phase 1 – 2021
Options:
A. Laissez-faire
B. People-oriented
C. Democratic
D. Autocratic
E. None of the Above

Q.10 The decision-making step which consists of organization Goals, predicting alternatives,
and communicating goals is called as _______. NABARD Grade A – Phase 1 – 2021
Options:
A. Organizing
B. Planning
C. Alternation
D. Valuing
E. None of the above

Q.11) There are many factors that affect the overall process of decision-making, in the same
regard, which of the following is an example of Individual factors of decision-making? NABARD
Grade A – Phase 1 – 2022
Options:
A. Organisation Goals and Policies
B. Past Experiences
C. Group Think
D. Commitment to the organization
E. Organisation Hierarchy

Q.12) In the decision-making parlance, when a decision maker deals in the creation of some
new products and he deals with new ideas, new methods or new products/services, this
process is called __________. NABARD Grade A – Phase 1 – 2022
Options:
A. Standard Operating Decisions
B. Critical thinking
C. Creativity
D. Routine Decisions
E. None of Above

Q.13) ____________ can be defined as measuring your performance against that of best-in-
class companies, determining how the best-in-class achieve those performance levels, and
using the information as the basis for your own company's targets, strategies, and
implementation. NABARD Grade A – Phase 1 – 2022
Options:
A. Inventory Control
B. Quality Control
C. Decision Standards
D. Benchmarking
E. None of the above
Q.14) In the decision-making context, a _______________ causes individuals to overestimate
the quality of decisions that had positive outcomes and underestimate the quality of decisions
that had negative outcomes. NABARD Grade A – Phase 1 – 2022
Options:
A. Hindsight Bias
B. Confirmative Bias
C. Conjoint Bias
D. Analysis Bias
E. None of the above

Q.15) Communication is one of the most essential skills that a business leader needs to master
to be successful. In the same regard, which of the following is the result of effective
communication? NABARD Grade A – Phase 1 – 2022
Options:
A. Implementing the required changes
B. Increases the conflict
C. Delay in decisions
D. Wastage of time
E. None of the above

Q.16) There are many biases in decision-making, in the same regard, identify the biases in
decision-making wherein the decision-maker tends to gather facts that support certain
conclusions but disregards other facts that support different conclusions. NABARD Grade A –
Phase 1 – 2022
Options:
A. Hindsight Bias
B. Confirmative Bias
C. Conjoint Bias
D. Analysis Bias
E. None of the above

Q.17) _________________ is a universal and prevalent cognitive bias affecting the decision-
making process and such bias increases the tendency of people to have excessive trust in their
abilities, knowledge, and ideas. NABARD Grade A – Phase 1 – 2022
Options:
 A. Overconfidence
B. Overthinking
C. Choice-supportive bias
D. Primacy Effect
E. None of the above

Q.18) In mechanistic decision-making, decisions are made with rapid reaction to known
situations as well as to situations that are nearly like known situations. In the same regard,
which of the following techniques or methods will help make mechanistic decisions? NABARD
Grade A – Phase 1 – 2022
Options:
A. Scientific techniques like PERT and CPM
B. Decisions are made only with future outcomes in mind.
C. Groupthink
D. Standard Operating Procedures
E. None of the above

Q.19) _________ is a human behaviour pattern in which an individual or group facing

increasingly negative outcomes from a decision, action, or investment nevertheless continue
the behaviour instead of altering course. NABARD Grade A – Phase 1 – 2022
Options:
A. Attribution asymmetry
B. Optimism bias
C. Escalation of commitment
D. Primacy Effect
E. None of the above

Q.20) In the decision-making process, we use many quantitative tools, in the same regard,
identify one quantitative tool from the below-given options, wherein diagrams and arrows are
used to arrive at a decision. NABARD Grade A – Phase 1 – 2022
Options:
A. Decision Tree
B. Flowchart
C. Affinity Diagrams
D. Conjoint Analysis
E. None of the above

Q.21) What technique is used to identify the most important factors that contribute to a
particular problem or outcome, based on the 80:20 ratio? NABARD Grade A – Phase 1 – 2023
Options:
A. Pareto analysis
B. Root cause analysis
C. Ishikawa diagram
D. Five whys
E. Brainstorming

Q.22) What strategies can individuals employ to mitigate confirmation bias in their decision-
making processes? NABARD Grade A – Phase 1 – 2023
Options:
A. By reducing personal thoughts and emphasizing objectivity
B. By reducing objectivity and increasing personal opinion
C. Seeking out only information that supports your existing beliefs
D. Avoiding any kind of critical thinking
E. None of the above

Q.23) What are the key factors contributing to procrastination in the decision-making process
among the following options? NABARD Grade A – Phase 1 – 2023
Options:
A. Analysis paralysis
B. Fear of consequences
C. Loss of opportunity
D. Compounding complexity
E. All of the above

Q.24) What is the term for a methodology that utilizes a panel of experts who provide
anonymous responses to structured questionnaires? NABARD Grade A – Phase 1 – 2023
Options:
A. Delphi method
B. Linear programming
C. PERT (Programming Evaluation and Review Technique)
D. Cost-benefit Analysis
E. None of the above

Q.25) In situations marked by uncertainty in the condition or outcome, but where the
associated risk is deemed minimal, what is the recommended approach to decision-making?
NABARD Grade A – Phase 1 – 2023
Options:
A. Be cautious and conservative.
B. Gather as much information as possible.
C. Consider all possible options.
D. Make a decision based on your intuition.
E. All of the above.

Q.26) What constitutes the initial step in the process of content analysis as applied to decision-
making? NABARD Grade A – Phase 1 – 2023
Options:
A. Data collection
B. Data analysis
C. Hypothesis formulation
D. Sampling
E. Data interpretation

Q.27) Which is the most precise definition of a random heuristic among the following options?
NABARD Grade A – Phase 1 – 2023
Options:
A. A search algorithm that uses a heuristic function to guide the search towards promising
areas of the search space.
B. A search algorithm that uses a combination of randomness and a heuristic function to find
a good solution.
C. A search algorithm that is guaranteed to find the optimal solution to a problem.
D. A search algorithm that is very fast but not very accurate.
E. None of the above
Q.28) Which of the following is a characteristic of the bounded rationality model? NABARD
Grade A – Phase 1 – 2023
Options:
A. Humans have complete information.
B. Humans have unlimited cognitive capacity.
C. Humans make decisions under time pressure.
D. Humans are always rational.
E. Humans always make the best possible decisions.

Q.29) Among the following, which assumption does not align with the principles of rational
decision-making? NABARD Grade A – Phase 1 – 2023
Options:
A. Perfect information
B. Consistency in preferences
C. Emotion-driven decision making
D. Transitivity of preferences
E. Maximizing utility

Q.30) Consider the following statements regarding group conflict. NABARD Grade A – Phase 1
– 2023
1. Group conflict can arise due to differences in goals and interests among group members.
2. Conflict within a group always leads to negative outcomes
3. Effective communication and conflict resolution skills are essential in managing and
resolving group conflicts.

Which among the following statement/s is/are incorrect?

Options-
A. 1 and 2
B. 2 and 3
C. 2 only
D. 2 and 3
E. 1,2, and 3
 Section B
Answer Key

2021 Questions

Question Number Correct Answer

Question 1 Option B
Question 2 Option C
Question 3 Option D
Question 4 Option A
Question 5 Option A
Question 6 Option B
Question 7 Option A
Question 8 Option D
Question 9 Option D
Question 10 Option B

2022 Questions

Question Number Answer

Question 1 Option B
Question 2 Option C
Question 3 Option D
Question 4 Option A
Question 5 Option A
Question 6 Option B
Question 7 Option A
Question 8 Option D
Question 9 Option C
Question 10 Option B

2023 Questions

Question Number Answer

Question 1 Option A
Question 2 Option A
Question 3 Option E
Question 4 Option A
Question 5 Option E
Question 6 Option A
Question 7 Option B
Question 8 Option C
Question 9 Option C
Question 10 Option C
 Section C

Explanation
NABARD Grade A questions 2021 onwards
Q.1 Consider the consumer making a purchase decision in a particular product category for the
very first time. In this situation, it would be possible for the consumer to make the purchase
decision using which of the following decision processes? NABARD Grade A – Phase 1 – 2021
Options:
A. Programmed Decision Making
B. Non-Programmed Decision Making
C. Routine Decision Making
D. Policy Decision Making
E. None of the Above

Answer: (B) Non-Programmed Decision Making

Explanation:
Non-programmed decisions are one-shot decisions. Handled by techniques such as judgment,
intuition, and creativity. A logical approach to deal with extraordinary, unexpected, and unique
problems. Managers take heuristic problem-solving approaches in which logic; common sense
and trial and error are used. Non-programmed decisions are novel and lack clear guidelines for
reaching a solution.

Q.2 The process whereby a manager shares his work and authority with his subordinates
is________. NABARD Grade A – Phase 1 – 2021
Options:
A. Decentralization
B. Responsibility.
C. Delegation
D. Decision Making
E. None of Above

Answer: (C) Delegation

Explanation:
Delegation is commonly defined as the shifting of authority and responsibility for particular
functions, tasks or decisions from one person (usually a leader or manager) to another.
Let’s check other options

• Decentralization: Distributing decision-making throughout an organization.

• Responsibility: Obligation to perform tasks and be accountable for outcomes.
• Decision Making: Selecting a course of action from alternatives.

Q.3 Which of the following scenarios best illustrates the concept of the working backward
heuristic? NABARD Grade A – Phase 1 – 2021
Options:
A. When you lose your keys, you begin to scour your dorm room because you know that you
will eventually find them that way.
B. When creating a presentation for class, you judge how close you are to finishing by looking
at the quality of your presentation so far.
C. In order to efficiently solve a crossword puzzle, you meticulously inspect each of the “across”
questions and each of the “down” questions.
D. To organize documents in your computer, you create an “All Documents” folder and proceed
to subdivide it into increasingly specific folders.
E. None of Above

Answer: (D) To organize documents in your computer, you create an “All Documents” folder
and proceed to subdivide it into increasingly specific folders.
Explanation:
The working backward heuristic is a method of problem-solving in which an individual imagines
they have already solved the problem they are trying to solve.
By imagining the problem is solved they can then work backwards in their mind and eventually
visualize a solution to the problem.

Q.4 __________ illustrates that 80% of effects arise from 20% of the causes – or 20% of your
actions/activities will account for 80% of your results/outcomes. NABARD Grade A – Phase 1
– 2021
Options:
A. Pareto Analysis
B. Heuristics
C. Conjoint analysis
D. Cost/Benefit Analysis
E. None of the above
Answer: (A) Pareto Analysis
Explanation:
The Pareto Principle, also known as the 80/20 Rule, The Law of the Vital Few and The Principle
of Factor Sparsity, illustrates that 80% of effects arise from 20% of the causes – or in laymen’s
terms – 20% of your actions/activities will account for 80% of your results/outcomes.
Let’s check other options-

• Heuristics: Mental shortcuts used for quick decision-making, although they can sometimes
lead to biases due to their simplified nature.
• Conjoint Analysis: A market research method that helps understand consumer preferences
by presenting different product attributes and analyzing which combinations are preferred,
revealing the importance of each attribute.
• Cost/Benefit Analysis: A methodical evaluation of the potential gains and losses associated
with a decision or project, helping decision-makers determine whether the benefits
outweigh the costs before proceeding.

Q.5 Decision-making is one of the basic _______ processes of human behaviors by which a
preferred option or a course of action is chosen from among a set of alternatives based on
certain criteria. NABARD Grade A – Phase 1 – 2021
Options:
A. Cognitive
B. Tactical
C. Operational
D. Strategic
E. None of the above

Answer: (A) Cognitive

Explanation:
Decision-making is a high-level cognitive process based on cognitive processes like perception,
attention, and memory. Real-life situations require a series of decisions to be made, with each
decision depending on previous feedback from a potentially changing environment.
Let’s check the other options:

• Tactical: Short-term actions and strategies to accomplish immediate goals, often involving
specific methods or maneuvers to address current challenges or opportunities.
• Operational: Routine activities and procedures necessary for the functioning of an
organization on a day-to-day basis, such as production, distribution, and administrative
tasks.
• Strategic: Long-term planning and decision-making concerned with defining the overall
direction and objectives of an organization, typically involving high-level decisions that
shape its future trajectory.

Q.6 It is a systematic process that businesses use to analyze which decisions to make and which
to forgo. It sums the potential rewards expected from a situation or action and then subtracts
the total costs associated with taking that action. NABARD Grade A – Phase 1 – 2021
Options:
A. Conjoint analysis
B. Cost Benefit Analysis
C. Heuristic methods
D. Paired Comparison Analysis
E. None of the above

Answer: (B) Cost Benefit Analysis

Explanation:
A cost-benefit analysis is a systematic process that businesses use to analyze which decisions to
make and which to forgo. The cost-benefit analyst sums the potential rewards expected from a
situation or action and then subtracts the total costs associated with taking that action.
Basically, cost-benefit analysis reduces the risk. It lets you lay a stronger foundation for your
decision. It also helps you to foresee the changes that are going to occur to your plan and the
mobilization of peripheral factors.

Q.7 A manager is considering purchasing new computers for her department. The manager
spends time assessing the computers her department now has. Which stage of the decision-
making process is she going through? NABARD Grade A – Phase 1 – 2021
Options:
A. Identification of a problem
B. Identification of decision criteria
C. Development of alternatives
D. implementation of an alternative
E. None of the above

Answer: (A) Identification of a problem

Explanation:
Identification of Problem: The problem is the gap between the actual situation and the desired
situation. The problem must be identified properly so that the correct solution can be found.
The first thing the manager needs to do is identify the problem. More specifically, she needs to
determine whether she actually has a problem or not. If the computers her department now has
are performing satisfactorily, she may decide that she doesn't have a problem and doesn't need
to purchase new computers. The other choices—identifying criteria, developing alternatives, or
implementing an alternative—all come later in the process after the manager has determined
what her problem is.

Q.8 The bounded rationality model is best defined by which of the following statements?
NABARD Grade A – Phase 1 – 2021
Options:
A. All the possible information about the problem is known.
B. Decisions are made only with future outcomes in mind.
C. It is an ideal approach to decision-making.
D. Decision makers strive to make the most rational decisions but understand there are
boundaries.
E. None of the above

Answer: (D) Decision makers strive to make the most rational decisions but understand there
are boundaries.
Explanation:
The bounded rationality model acknowledges that decision-makers strive to make rational
decisions but understand that there are limitations or boundaries to their rationality. Bounded
rationality is the idea that rationality is limited when individuals make decisions. In other words,
humans' "preferences are determined by changes in outcomes relative to a certain reference
level".

Q.9 What do you call a style of leadership that doesn’t take account of others' views, opinions,
and ideas during decision-making? NABARD Grade A – Phase 1 – 2021
Options:
A. Laissez-faire
B. People-oriented
C. Democratic
D. Autocratic
E. None of the above

Answer: (D) Autocratic

Explanation:
Autocratic leadership, also known as authoritarian leadership, is a leadership style characterized
by individual control over all decisions and little input from group members. Autocratic leaders
typically make choices based on their ideas and judgments and rarely accept advice from
followers.

Q.10 The decision-making step which consists of organization Goals, predicting alternatives,
and communicating goals is called _______. NABARD Grade A – Phase 1 – 2021
Options:
A. Organizing
B. Planning
C. Alternation
D. Valuing
E. None of the above

Answer: (B) Planning

Explanation:
In particular, planning helps to critically assess the goal to see if it's realistic. It facilitates decision-
making and allows setting a time frame by predicting when the company can achieve its goal. It
also defines how to measure performance against the set goals and whose responsibility it will
be. Planning is a management process, concerned with defining goals for a company's future
direction and determining the missions and resources to achieve those targets.
Let’s check the other options

• Organizing: Organizing involves arranging resources and tasks to achieve organizational

objectives efficiently. It typically follows the planning stage and involves establishing a
structure, allocating responsibilities, and coordinating activities.
• Alternation: Alternation is a process of making changes or substitutions between different
options or alternatives. However, in the context of decision-making steps, "alternation"
doesn't correspond directly to a recognized stage in the process.
• Valuing: Valuing involves assigning worth or significance to various options or alternatives.
It can be part of the decision-making process where decision-makers assess the potential
benefits and drawbacks of each option based on their values or priorities.

Q.11) There are many factors that affect the overall process of decision-making, in the same
regard, which of the following is an example of Individual factors of decision-making? NABARD
Grade A – Phase 1 – 2022
Options:
A. Organisation Goals and Policies
B. Past Experiences
C. Group Think
D. Commitment to the organization
E. Organization Hierarchy

Answer - (B) Past Experiences

Explanation:
Past Experience: A decision maker's experience provides him guidance for decision-making. It
helps to answer the question involving 'what to do in a particular situation'.
However, while using experience in decision-making, one must evaluate whether the experience
is relevant for the situation under which the decision is being made. A manager should use
experience but need not be blindly bound by it.

Q.12) In the decision-making parlance, when a decision maker deals in the creation of some
new products and he deals with new ideas, new methods, or new product/services, this
process is called as __________. NABARD Grade A – Phase 1 – 2022
Options:
A. Standard Operating Decisions
B. Critical thinking
C. Creativity
D. Routine Decisions
F. None of Above

Answer - (C) Creativity

Explanation:
Creativity improves the quality of decisions. It increases the scope of alternatives to be
considered for problem-solving. It is essential to deal with problems which are non-repetitive
and novel as such problems cannot be solved by pre-defined solutions. They require imaginative
thinking for their solution.
Let’s check other options

• Standard Operating Decisions: These decisions refer to routine or repetitive choices made
within an organization's established procedures or protocols. They are typically made in
response to recurring situations or tasks and involve following predetermined guidelines or
standards.
• Critical Thinking: Critical thinking involves analyzing and evaluating information or ideas
systematically and logically to make reasoned judgments or decisions. It focuses on
questioning assumptions, considering evidence, and assessing arguments to reach well-
informed conclusions.
• Routine Decisions: Routine decisions are those that are made frequently and involve
predictable situations or tasks. These decisions typically follow established procedures or
rules and require minimal analysis or creativity.
Q.13) ____________ can be defined as measuring your performance against that of best-in-
class companies, determining how the best-in-class achieve those performance levels, and
using the information as the basis for your own company's targets, strategies, and
implementation. NABARD Grade A – Phase 1 – 2022
Options:
A. Inventory Control
B. Quality Control
C. Decision Standards
D. Benchmarking
E. None of the above

Answer – (D) Benchmarking

Explanation:
Benchmarking is a popular method for developing requirements and setting goals. In more
conventional terms, benchmarking can be defined as measuring your performance against that
of best-in-class companies, determining how the best-in-class achieve those performance levels,
and using the information as the basis for your own company's targets, strategies, and
implementation.
Benchmarking involves research into the best practices at the industry, firm, or process level.
Benchmarking goes beyond a determination of the industry standard. it breaks the firm's
activities down to process operations and looks for the best-in-class for a particular operation.

Q.14) In the decision-making context, a _______________ causes individuals to overestimate

the quality of decisions that had positive outcomes and underestimate the quality of decisions
that had negative outcomes. NABARD Grade A – Phase 1 – 2022
Options:
A. Hindsight Bias
B. Confirmative Bias
C. Conjoint Bias
D. Analysis Bias
E. None of the above

Answer: (A) Hindsight Bias

Explanation:
A hindsight bias causes individuals to overestimate the quality of decisions that had positive
outcomes and underestimate the quality of decisions that had negative outcomes. The term
"hindsight bias" refers to the tendency people have to view events as more predictable than
they really are. Before an event takes place, while you might be able to offer a guess as to the
outcome, there is really no way to actually know what's going to happen.

Q.15) Communication is one of the most essential skills that a business leader needs to master
to be successful. In the same regard, which of the following is the result of effective
communication? NABARD Grade A – Phase 1 – 2022
Options:
A. Implementing the required changes
B. Increases the conflict
C. Delay in decisions
D. Wastage of time
E. None of the above

Answer: (A) Implementing the required changes

Explanation:
The word communication means sharing the same ideas. In other words, the transmission and
interaction of facts, ideas, opinions, feelings or attitudes. Communication is the essence of
management. The basic function of management (planning, planning, staffing, supervision, and
management) cannot be done effectively without effective communication.
Communication is the sending and receiving of information and it can be one-on-one or between
groups of people and can be face-to-face or through communication devices. Communication
has been found to be the determinant factor of success in the implementation of required
change.

Q.16) There are many biases in decision-making, in the same regard, identify the biases in
decision-making wherein the decision-maker tends to gather facts that support certain
conclusions but disregards other facts that support the different conclusion. NABARD Grade A
– Phase 1 – 2022
Options:
A. Hindsight Bias
B. Confirmative Bias
C. Conjoint Bias
D. Analysis Bias
E. None of the above

Answer: (B) Confirmative Bias

Explanation:
Selective search for evidence (also known as confirmation bias): People tend to be willing to
gather facts that support certain conclusions but disregard other facts that support different
conclusions.
Confirmation bias occurs from the direct influence of desire on beliefs. When people would like
a certain idea or concept to be true, they end up believing it to be true. They are motivated by
wishful thinking. This error leads the individual to stop gathering information when the evidence
gathered so far confirms the views or prejudices one would like to be true.

Q.17) _________________ is a universal and prevalent cognitive bias affecting the decision-
making process and such bias increases the tendency of people to have excessive trust in their
abilities, knowledge, and ideas. NABARD Grade A – Phase 1 – 2022
Options
A. Overconfidence
B. Overthinking
C. Choice-supportive bias
D. Primacy Effect
E. None of the above

Answer: (A) Overconfidence

Explanation:
Overconfidence bias refers to the tendency of people to have excessive confidence in their
abilities, knowledge, and ideas. It is an example of a cognitive bias affecting the success in the
life of people. It can happen irrespective of gender, age, experience, or field of knowledge. The
overconfidence level in individuals may vary. Some people have more of it, and some have less
of it.
For example, a significant portion of Americans thinks they have above-average intelligence.
They demonstrate overconfidence in their knowledge and abilities.

Q.18) In mechanistic decision-making, decisions are made with rapid reaction to known
situations as well as to situations that are nearly like known situations. In the same regard,
which of the following techniques or method will help making mechanistic decision? NABARD
Grade A – Phase 1 – 2022
Options:
A. Scientific techniques like PERT and CPM
B. Decisions are made only with future outcomes in mind.
C. Groupthink
D. Standard Operating Procedures
E. None of the above

Answer: (D) Standard Operating Procedures

Explanation:
A standard operating procedure, or SOP, is a set of detailed step-by-step instructions that
describe how to carry out any given process. Two major benefits of using a standard operating
procedure include consistency and a decrease in the number of errors made and SOPs are very
helpful in making mechanistic decisions.
Let’s check the other options

• Scientific techniques like PERT and CPM: Tools for project management, not specific to
mechanistic decision-making.
• Decisions are made only with future outcomes in mind: Forward-looking approach, not
specific to mechanistic decision-making.
• Groupthink: Phenomenon where group harmony overrides critical evaluation, not specific
to mechanistic decision-making.

Q.19) _________ is a human behavior pattern in which an individual or group facing

increasingly negative outcomes from a decision, action, or investment nevertheless continues
the behavior instead of altering course. NABARD Grade A – Phase 1 – 2022
Options:
A. Attribution asymmetry
B. Optimism bias
C. Escalation of commitment
D. Primacy Effect
E. None of the above

Answer: (C) Escalation of commitment

Explanation:
Escalation of commitment refers to the psychological condition whereby people continue to
support or believe in something that is repetitively failing. In managerial decision-making
escalation of commitment can refer to either continuing with a failed project. It may also refer
to overestimating one’s own managerial capacity or ability.
This can be where you have an emotional, psychological, or financial investment that may be
failing and has led to an irrational compulsion to stick with it or even escalate your commitment.
Q.20) In the decision-making process, we use many quantitative tools, in the same regard,
identify one quantitative tool from the below given options, wherein diagrams and arrows are
used to arrive at a decision. NABARD Grade A – Phase 1 – 2022
Options:
A. Decision Tree
B. Flowchart
C. Affinity Diagrams
D. Conjoint Analysis
E. None of the above

Answer: (B) Flowchart

Explanation:
A flowchart is a type of diagram that represents a workflow or process. A flowchart can also be
defined as a diagrammatic representation of an algorithm, a step-by-step approach to solving a
task. The flowchart shows the steps as boxes of various kinds, and their order by connecting
the boxes with arrows.
Let’s check the other options-

• Decision Tree: Graphical representation of decisions and their outcomes, used in decision-
making under uncertainty.
• Affinity Diagrams: Organize data or ideas into meaningful groups based on relationships or
similarities.
• Conjoint Analysis: Statistical technique to determine the value of different product
attributes in market research.

Q.21) What technique is used to identify the most important factors that contribute to a
particular problem or outcome, based on the 80:20 ratio? NABARD Grade A – Phase 1 – 2023
Options:
A. Pareto analysis
B. Root cause analysis
C. Ishikawa diagram
D. Five whys
E. Brainstorming

Answer: (A) Pareto Analysis

Explanation:
 Pareto analysis is a technique that is used to identify the most important factors that contribute
to a particular problem or outcome, based on the 80:20 ratio. It is a simple and effective way
to prioritize your efforts and focus on the things that will have the biggest impact.
Let’s check other options

• Root cause analysis: Identifies fundamental reasons behind problems.

• Ishikawa diagram: Helps categorize and visualize potential causes.
• Five whys: Repeatedly asks "why" to delve into deeper causes.
• Brainstorming: Generates diverse ideas through group collaboration.

Q.22) What strategies can individuals employ to mitigate confirmation bias in their decision-
making processes? NABARD Grade A – Phase 1 – 2023
Options:
A. By reducing personal thoughts and emphasizing objectivity
B. By reducing objectivity and increasing personal opinion
C. Seeking out only information that supports your existing beliefs
D. Avoiding any kind of critical thinking
E. None of the above

Answer: (A) By reducing personal thoughts and emphasizing objectivity

Explanation:
Confirmation bias is a cognitive bias that leads people to seek out and interpret information in a
way that confirms their existing beliefs. This can lead to inaccurate and irrational decision-
making.
To avoid confirmation bias, it is important to be aware of it and to take steps to mitigate its
effects. One way to do this is to reduce personal thoughts and emphasize objectivity. This means
being open to new information and considering all sides of an issue before forming an opinion.
It is also important to seek out multiple sources of information, including those that challenge
your existing beliefs.

Q.23) What are the key factors contributing to procrastination in the decision-making process
among the following options? NABARD Grade A – Phase 1 – 2023
Options:
A. Analysis paralysis
B. Fear of consequences
C. Loss of opportunity
D. Compounding complexity
 E. All of the above

Answer: (E) All of the above

Explanation:

• Analysis paralysis is a state of overthinking in which a person becomes unable to make a

decision because they are constantly weighing the pros and cons of each option. This is a
common issue for procrastinators, as it can lead them to put off making a decision until
the last minute, or even indefinitely. Hence, Option A is correct
• Fear of consequences is another common reason why people procrastinate on making
decisions. This is especially true for difficult decisions that have potentially negative
consequences. Procrastinators may avoid making these decisions for fear of making the
wrong choice, or for fear of the negative consequences that may follow. Hence, Option B
is correct
• Loss of opportunity is another potential issue of procrastination in decision making. In a
dynamic environment, delaying a decision can mean missing out on opportunities. For
example, a procrastinator who delays making a decision about whether to accept a job
offer may find that the position is filled by someone else before they finally make up their
mind. Hence, Option C is correct
• Compounding complexity is a process in which procrastinating on decisions can make
them more difficult to make in the long run. This is because, as time goes on, the situation
may change and new factors may emerge. This can make it more difficult for the
procrastinator to weigh the pros and cons of each option and make a decision. Hence,
Option D is correct

Therefore, option E is the correct answer

Q.24) What is the term for a methodology that utilizes a panel of experts who provide
anonymous responses to structured questionnaires? NABARD Grade A – Phase 1 – 2023
Options:
A. Delphi method
B. Linear programming
C. PERT (Programming Evaluation and Review Technique)
D. Cost-benefit Analysis
E. None of the above

Answer: (A) Delphi Method

Explanation:
The Delphi method is a forecasting method that uses a panel of experts to gather opinions and
insights on a particular topic. The experts are surveyed multiple times, and their responses are
used to develop a consensus. The anonymity of the experts is preserved to encourage them to
be honest and open in their responses.
Let’s check the other options

• Linear programming: A mathematical technique used to optimize resource allocation by

maximizing or minimizing a linear objective function, subject to linear equality and
inequality constraints.
• PERT (Program Evaluation and Review Technique): A project management tool used to
analyze and represent the tasks involved in completing a project, along with their
dependencies and estimated durations, to determine the critical path and project timeline.
• Cost-benefit Analysis: A systematic approach to evaluating the pros and cons of a decision
or project by comparing the expected costs and benefits, typically expressed in monetary
terms, to determine whether the benefits outweigh the costs.

Q.25) In situations marked by uncertainty in the condition or outcome, but where the
associated risk is deemed minimal, what is the recommended approach to decision-making?
NABARD Grade A – Phase 1 – 2023
Options:
A. Be cautious and conservative.
B. Gather as much information as possible.
C. Consider all possible options.
D. Make a decision based on your intuition.
E. All of the above.

Answer: (E) All of the above

Explanation:
When making decisions in circumstances where the condition or outcome is characterized by a
degree of uncertainty, while the level of associated risk is considered to be minimal, it is
important to be cautious and conservative, gather as much information as possible, consider all
possible options, and make a decision based on your intuition.
Here is a breakdown of each option:

• Be cautious and conservative: This means being careful and avoiding unnecessary risks. In
the context of decision-making, it means choosing options that are less risky, even if they
may not be the most optimal.
• Gather as much information as possible: This means collecting as much data and evidence
as possible before making a decision. This will help you to better understand the situation
and to identify the potential risks and rewards of each option.
• Consider all possible options: This means brainstorming all of the possible ways to solve the
problem or achieve your goal. Once you have a list of options, you can start to evaluate them
and choose the one that is best for you.
• Make a decision based on your intuition: This means trusting your gut feeling. Intuition is
often based on subconscious knowledge and experience, and it can be a valuable tool for
making decisions, especially when there is a lot of uncertainty.

Therefore, the correct answer is option E

Q.26) What constitutes the initial step in the process of content analysis as applied to decision-
making? NABARD Grade A – Phase 1 – 2023
Options:
A. Data collection
B. Data analysis
C. Hypothesis formulation
D. Sampling
E. Data interpretation

Answer: (A) Data Collection

Explanation:
Content analysis involves systematically collecting and organizing data from various sources,
such as texts, images, or audio, to analyze and extract meaningful information. Once data is
collected, subsequent steps in content analysis, such as coding, categorization, and analysis,
follow to make informed decisions.
Let’s check the other options-

• Data analysis: This step comes after data collection and involves examining, organizing, and
interpreting the collected data to identify patterns or insights.
• Hypothesis formulation: This step involves proposing a tentative explanation or theory
based on existing knowledge or observations, which is then tested through data analysis.
• Sampling: Sampling involves selecting a subset of the population or data to study, which is
often done to make the analysis more manageable or to ensure representativeness.
• Data interpretation: Data interpretation is the process of making sense of the analyzed data
by drawing conclusions, identifying implications, and providing explanations or
recommendations based on the findings.

Q.27) Which is the most precise definition of a random heuristic among the following options?
NABARD Grade A – Phase 1 – 2023
Options:
A. A search algorithm that uses a heuristic function to guide the search towards promising
areas of the search space.
B. A search algorithm that uses a combination of randomness and a heuristic function to find
a good solution.
C. A search algorithm that is guaranteed to find the optimal solution to a problem.
D. A search algorithm that is very fast but not very accurate.
E. None of the above

Answer: (B) A search algorithm that uses a combination of randomness and a heuristic function
to find a good solution.
Explanation:
Random heuristics are often used to solve complex problems that are difficult or impossible to
solve using traditional methods. They work by randomly exploring the search space and using a
heuristic function to guide the search towards promising areas.

Q.28) Which of the following is a characteristic of the bounded rationality model? NABARD
Grade A – Phase 1 – 2023
Options:
A. Humans have complete information.
B. Humans have unlimited cognitive capacity.
C. Humans make decisions under time pressure.
D. Humans are always rational.
E. Humans always make the best possible decisions.

Answer: (C) Humans make decisions under time pressure.

Explanation:
The bounded rationality model is a theory of decision-making that recognizes that humans are
limited in their ability to gather and process information, as well as in their cognitive capacity.
This means that humans often cannot make optimal decisions, but instead must settle for "good
enough" decisions.
One of the key characteristics of the bounded rationality model is that humans make decisions
under time pressure. This is because the world is constantly changing, and we often need to
make decisions quickly in order to adapt. For example, if you are driving and you see a pedestrian
crossing the street, you need to make a decision about whether to brake or swerve immediately.
Q.29) Among the following, which assumption does not align with the principles of rational
decision-making? NABARD Grade A – Phase 1 – 2023
Options:
A. Perfect information
B. Consistency in preferences
C. Emotion-driven decision making
D. Transitivity of preferences
E. Maximizing utility

Answer: (C) Emotion Driven Decision Making

Explanation:
Emotion-driven decision-making: Rational decision-making assumes that decisions are not
influenced by emotions but are made based on a logical and objective evaluation of available
options. This is why it is the correct answer to the question, as it goes against the rational
decision-making framework.
Let’s check other options

• Perfect information: This assumption aligns with rational decision-making principles, as it

implies that decision-makers have access to all relevant information necessary to make
informed choices.
• Consistency in preferences: Rational decision-making assumes that individuals have
consistent preferences, meaning their choices follow logical patterns and are not
influenced by arbitrary factors.
• Transitivity of preferences: This assumption suggests that if a decision-maker prefers
option A over option B, and option B over option C, then the decision-maker must prefer
option A over option C. It ensures logical coherence in decision-making.
• Maximizing utility: Rational decision-making involves selecting the option that maximizes
utility or satisfaction, based on the available information and preferences. This principle
guides individuals to make choices that provide the greatest benefit or value.

Q.30) Consider the following statements regarding group conflict. NABARD Grade A – Phase 1
– 2023
1. Group conflict can arise due to differences in goals and interests among group members.
2. Conflict within a group always leads to negative outcomes
3. Effective communication and conflict resolution skills are essential in managing and
resolving group conflicts.

Which among the following statement/s is/are incorrect?

Options-
 A. 1 and 2
B. 2 and 3
C. 2 only
D. 2 and 3
E. 1,2, and 3

Answer: (C) 2 only

Explanation:

• Statement 1 is true. Group conflict can arise due to a variety of factors, including differences
in goals and interests among group members. For example, if one group member is focused
on completing a project quickly while another group member is focused on ensuring high-
quality work, this could lead to conflict.
• Statement 2 is false. Conflict within a group does always lead to negative outcomes. In fact,
some conflicts can be constructive and lead to better decision-making and problem-solving.
However, it is important to manage conflict effectively to avoid negative consequences, such
as decreased productivity, morale, and team cohesion.
• Statement 3 is true. Effective communication and conflict resolution skills are essential in
managing and resolving group conflicts. When group members are able to communicate
effectively and resolve conflicts constructively, this can lead to a more positive and
productive group environment.

Therefore, the only option that is correct is C