1. Hawala transactions in India are prohibited under the provision of which of the following Acts?
a) FRBM Act
b) FEMA
c) RBI Act
d) FATF Act
e) Banking Regulation Act
2. Advantages of Mutual Funds are:
a) The transaction cost is very low
b) Provides more security as compared to shares
c) The small amounts gathered will be invested in diversified sectors
d) Professional Management is provided through AMC
e) All of the above
3. Issuing credit cards falls under ___
a) Corporate banking
b) Rural banking
c) Retail banking
d) Micro finance
e) None of these
4. Banks are considered as 'financial intermediaries', which of the following activity correctly and comprehensively explains the role of banks?
a) Accepting deposits of money for the purpose of lending and investment
b) Granting loans to the weaker sections of the society
c) Accepting money for remittance and issuing bank drafts
d) Providing safe deposit services
e) Opening accounts and accepting deposits therein
5. Banks will come across different types of risks in their day to day activities. Which of the following is one such major risk?
a) Customer risk
b) Reputation
c) Goodwill risk
d) Protection risk
e) Operational risk
6. What does the letter 'R' denotes in the abbreviation 'BR Act' which controls banking activities
in the country?
a) Reformation
b) Regulation
c) Reporting
d) Resolution
e) Ranking
7. Which of the following a largest private sector bank in India in respect of Number of branches/ business?
a) AXIS Bank
b) HDFC Bank
c) ICICI Bank
d) Kotak Mahindra
e) None of these
8. When RBI increases CRR/ SLR it is said to be:
a) Tight money policy
b) Easy money policy
c) Open money policy
d) Closed money policy
e) None of these
9. What per cent of Net bank credit are "domestic commercial banks required lending to Agricultural" sector?
a) 12%
b) 18%
c) 15%
d) 40%
e) None of these
10. Which of the following banks was not nationalized in the first phase of Nationalization in the year 1969?
a) Punjab National Bank
b) Oriental Bank of Commerce
c) Bank of Baroda
d) Union Bank of India
e) None of these
11. A savings bank account opened with a commercial bank with zero balance or very minimum balance is known as:
a) Savings bank - ordinary account
b) Student savings bank account
c) No frill account
d) Current account
e) Safe deposit account
12. Personal Accident Insurance Scheme is available for KCC (Kisan Credit Card) holders. Who pay the insurance premium of Rs. 15?
a) Bank Will pay entire premium
b) KCC Holder will pay entire premium
c) Bank and KCC holder will share equally
d) Bank will pay Rs. 10/- and Rs 5/- will be debited to KCC holder's account
e) KCC Holder will pay Rs. 10/- and Bank will pay the balance of Rs. 5/-
13. Which of the following are correct regarding NABARD?
a) It manages Financial Inclusion Fund
b) It operates Rural Infrastructure Development Fund
c) Established on 12th July 1982
d) It is a Micro Finance Regulatory Authority
e) All of the above
14. A nationalized bank is also called by the following name:
a) Private Sector Bank
b) Self Help Group
c) Grameen bank
d) Public Sector Bank
e) None of these
15. Which of the following is incorrect?
a) EXÏM bank is established in the year 1982
b) SIDBI was established in the year 1990
c) National Housing Bank was Created in the year 1988
d) IRDA was established in the year 1980
e) BIFR was established in the year 1987
16. Who headed the committee on financial benchmarks set up by RBI?
a) Y Venugopal Reddy
b) C Rangarajan
c) Bimal Jalan
d) Vijay Kelkar
e) Vijaya Bhaskar
17. ____ is allowed by the Government of India to increase foreign shareholding from 49 per cent to 62 per cent recently.
a) HDFC
b) Axis Bank
c) YES Bank
d) ICICI bank
e) None of the above
18. Which of the following is/ are considered as a valid proof of address while opening an account
with a bank?
a) PAN card
b) Driving license
c) Electricity bill
d) Passport
e) b, c & d
19. The target for providing finance to Weaker Sections, under priority sector stipulated by RBI is ____
a) 10%
b) 18%
c) 32%
d) 40%
e) None of these
20. The need for CTS - 2010 (Cheque Truncation System) is introduced for the purpose of:
a) Attractive designing
b) Uniform in digits
c) Uniform security features
d) To speed up clearing of instruments to help customers
e) Both c and d
21. Who will guarantee cover to the loans given under CGTMSE?
a) IRDA
b) SEBI
c) NABARD
d) RBI
e) SIDBI & GOI
22. Where is the headquarters of the bank for International Settlements (BIS) located?
a) Hong Kong
b) Vienna
c) Mexico City
d) Basel
e) Antwerp
23. QCCP (Pertaining to payment and settlement section Act 2007) stands for:
a) Queried Central Counterparty
b) Qualifying Central Counterparty
c) Qualitative Central Counterparty
d) Quantitative Central Counterparty
e) None of these
24. A Banking Ombudsman can reject a complaint at any stage on which of the following grounds?
a) There is no loss or damage or inconvenience caused to the complaint in the option of the
Banking Ombudsman
b) The compensation sought from the banking Ombudsman is beyond Rs.10 lakh
c) The complaint is not pursued by the complaint with reasonable diligence
d) Any of the above
e) Only 1 and 3
25. In banking terminology difference between interest earned and interest paid is called as:
a) Margin
b) Interest Income
c) Spread
d) Both b & c
e) None of these
26. IBA at its meeting held on 20th August 2014 elected Mr./ Mrs. ___ as Chairman & Managing
Director of IBA for the year (term) 2014-15.
a) VR Iyer
b) HR Kamath
c) Arundhati Bhattacharya
d) TM Bhasin
e) MV Nair
27. SFMS, in banking parlance, stands for:
a) Scheme for Marginal and Small Farmers
b) Super Financial Message System
c) Systematic Financial Messaging System
d) Structured Financial Messaging System
e) None of the above
28. Call money market deals in short term finance repayable on demand with a maturity period varying from:
a) 1 to 30 days
b) 7 to 14 days
c) 14 to 30 days
d) 30 to 60 days
e) 1 to 14 days
29. Which of the following is not a "Money Market Instrument"?
a) Treasury Bills
b) Commercial Paper
c) Certificate of deposit
d) Equity Shares
e) None of these
30. At present Treasury bills are issued by Government of India through auctions with a maturity periods of:
a) 91 days, 182 days, 364 days
b) 20 days, 60 days, 180 days
c) 30 days, 60 days, 180 days
d) 60 days, 90 days, 180 days
e) 90 days, 180 days, 360 days
31. Which of the following organizations provides Credit Rating and Credit History (Information)
of the borrowers?
a) CRISIL, RBI
b) SEBI, IRDA
c) RBI, ICRA
d) IBA, SEBI
e) CRISIL, CIBIL
32. What is Money Laundering?
a) Conversion of assets into cash
b) Conversion of cash into gold
c) Conversion of illegally obtained money into white money
d) Conversion of gold into money
e) None of these
33. "Reinsurance" means:
a) Insuring twice for the same policy holder
b) This meant for only Bank Loan Borrowers
c) This is meant for Public Sector Employees
d) It is a insurance policy issued by IRDA
e) One insurance company insuring with another big and sound insurance company to manage its probable risks.
34. Apex Bank to take care of Agriculture Credit in India is:
a) NABARD
b) Co - operative bank
c) RBI
d) SBI
e) None
35. As per RBI order, against the certificate of Deposit, the ___
a) Loan cannot be granted
b) Loan can be granted
c) Loan can be granted up to 50% of value
d) Loan can be granted up to 75% of value
e) None
36. Which of the private sector lenders introduced its own card 'Kisan Card' through which a farmer can withdraw up to Rs. 1 lakh per day from ATMs?
a) HDFC
b) ICICI
c) Axis Bank
d) Federal Bank
e) Indus Ind bank
37. ___ % Net Bank Credit (NBC) to be given to priority sector lending by foreign banks as per the order of RBI?
a) 50
b) 40
c) 60
d) 12
e) 32
38. Which one of the following is not an authorized means of banking transactions for the people in India?
a) Mobile
b) Online
c) Phone
d) Visiting Individually
e) Video Conferencing
39. For violation of FEMA, prosecution is done by:
a) RBI
b) DGFT
c) FEDAI
d) Enforcement Directorate
e) None of these
40. Loans of very Small amount given to low income group is called?
a) Cash Credit
b) No Frill Credit
c) Rural Credit
d) Micro Credit
e) Simple over Draft
ANSWERS:
1. b; 2. e; 3. c; 4. a; 5. e; 6. b; 7. c; 8. a; 9. b; 10. b;
11. c; 12. d; 13. e; 14. d; 15. d; 16. e; 17. b; 18. e; 19. a; 20. e;
21. e; 22. d; 23. b; 24. d; 25. d; 26. d; 27. d; 28. e; 29. d; 30. a;
31. e; 32. c; 33. e; 34. a; 35. a; 36. c; 37. e; 38. e; 39. d; 40. d;
a) FRBM Act
b) FEMA
c) RBI Act
d) FATF Act
e) Banking Regulation Act
2. Advantages of Mutual Funds are:
a) The transaction cost is very low
b) Provides more security as compared to shares
c) The small amounts gathered will be invested in diversified sectors
d) Professional Management is provided through AMC
e) All of the above
3. Issuing credit cards falls under ___
a) Corporate banking
b) Rural banking
c) Retail banking
d) Micro finance
e) None of these
4. Banks are considered as 'financial intermediaries', which of the following activity correctly and comprehensively explains the role of banks?
a) Accepting deposits of money for the purpose of lending and investment
b) Granting loans to the weaker sections of the society
c) Accepting money for remittance and issuing bank drafts
d) Providing safe deposit services
e) Opening accounts and accepting deposits therein
5. Banks will come across different types of risks in their day to day activities. Which of the following is one such major risk?
a) Customer risk
b) Reputation
c) Goodwill risk
d) Protection risk
e) Operational risk
6. What does the letter 'R' denotes in the abbreviation 'BR Act' which controls banking activities
in the country?
a) Reformation
b) Regulation
c) Reporting
d) Resolution
e) Ranking
7. Which of the following a largest private sector bank in India in respect of Number of branches/ business?
a) AXIS Bank
b) HDFC Bank
c) ICICI Bank
d) Kotak Mahindra
e) None of these
8. When RBI increases CRR/ SLR it is said to be:
a) Tight money policy
b) Easy money policy
c) Open money policy
d) Closed money policy
e) None of these
9. What per cent of Net bank credit are "domestic commercial banks required lending to Agricultural" sector?
a) 12%
b) 18%
c) 15%
d) 40%
e) None of these
10. Which of the following banks was not nationalized in the first phase of Nationalization in the year 1969?
a) Punjab National Bank
b) Oriental Bank of Commerce
c) Bank of Baroda
d) Union Bank of India
e) None of these
11. A savings bank account opened with a commercial bank with zero balance or very minimum balance is known as:
a) Savings bank - ordinary account
b) Student savings bank account
c) No frill account
d) Current account
e) Safe deposit account
12. Personal Accident Insurance Scheme is available for KCC (Kisan Credit Card) holders. Who pay the insurance premium of Rs. 15?
a) Bank Will pay entire premium
b) KCC Holder will pay entire premium
c) Bank and KCC holder will share equally
d) Bank will pay Rs. 10/- and Rs 5/- will be debited to KCC holder's account
e) KCC Holder will pay Rs. 10/- and Bank will pay the balance of Rs. 5/-
13. Which of the following are correct regarding NABARD?
a) It manages Financial Inclusion Fund
b) It operates Rural Infrastructure Development Fund
c) Established on 12th July 1982
d) It is a Micro Finance Regulatory Authority
e) All of the above
14. A nationalized bank is also called by the following name:
a) Private Sector Bank
b) Self Help Group
c) Grameen bank
d) Public Sector Bank
e) None of these
15. Which of the following is incorrect?
a) EXÏM bank is established in the year 1982
b) SIDBI was established in the year 1990
c) National Housing Bank was Created in the year 1988
d) IRDA was established in the year 1980
e) BIFR was established in the year 1987
16. Who headed the committee on financial benchmarks set up by RBI?
a) Y Venugopal Reddy
b) C Rangarajan
c) Bimal Jalan
d) Vijay Kelkar
e) Vijaya Bhaskar
17. ____ is allowed by the Government of India to increase foreign shareholding from 49 per cent to 62 per cent recently.
a) HDFC
b) Axis Bank
c) YES Bank
d) ICICI bank
e) None of the above
18. Which of the following is/ are considered as a valid proof of address while opening an account
with a bank?
a) PAN card
b) Driving license
c) Electricity bill
d) Passport
e) b, c & d
19. The target for providing finance to Weaker Sections, under priority sector stipulated by RBI is ____
a) 10%
b) 18%
c) 32%
d) 40%
e) None of these
20. The need for CTS - 2010 (Cheque Truncation System) is introduced for the purpose of:
a) Attractive designing
b) Uniform in digits
c) Uniform security features
d) To speed up clearing of instruments to help customers
e) Both c and d
21. Who will guarantee cover to the loans given under CGTMSE?
a) IRDA
b) SEBI
c) NABARD
d) RBI
e) SIDBI & GOI
22. Where is the headquarters of the bank for International Settlements (BIS) located?
a) Hong Kong
b) Vienna
c) Mexico City
d) Basel
e) Antwerp
23. QCCP (Pertaining to payment and settlement section Act 2007) stands for:
a) Queried Central Counterparty
b) Qualifying Central Counterparty
c) Qualitative Central Counterparty
d) Quantitative Central Counterparty
e) None of these
24. A Banking Ombudsman can reject a complaint at any stage on which of the following grounds?
a) There is no loss or damage or inconvenience caused to the complaint in the option of the
Banking Ombudsman
b) The compensation sought from the banking Ombudsman is beyond Rs.10 lakh
c) The complaint is not pursued by the complaint with reasonable diligence
d) Any of the above
e) Only 1 and 3
25. In banking terminology difference between interest earned and interest paid is called as:
a) Margin
b) Interest Income
c) Spread
d) Both b & c
e) None of these
26. IBA at its meeting held on 20th August 2014 elected Mr./ Mrs. ___ as Chairman & Managing
Director of IBA for the year (term) 2014-15.
a) VR Iyer
b) HR Kamath
c) Arundhati Bhattacharya
d) TM Bhasin
e) MV Nair
27. SFMS, in banking parlance, stands for:
a) Scheme for Marginal and Small Farmers
b) Super Financial Message System
c) Systematic Financial Messaging System
d) Structured Financial Messaging System
e) None of the above
28. Call money market deals in short term finance repayable on demand with a maturity period varying from:
a) 1 to 30 days
b) 7 to 14 days
c) 14 to 30 days
d) 30 to 60 days
e) 1 to 14 days
29. Which of the following is not a "Money Market Instrument"?
a) Treasury Bills
b) Commercial Paper
c) Certificate of deposit
d) Equity Shares
e) None of these
30. At present Treasury bills are issued by Government of India through auctions with a maturity periods of:
a) 91 days, 182 days, 364 days
b) 20 days, 60 days, 180 days
c) 30 days, 60 days, 180 days
d) 60 days, 90 days, 180 days
e) 90 days, 180 days, 360 days
31. Which of the following organizations provides Credit Rating and Credit History (Information)
of the borrowers?
a) CRISIL, RBI
b) SEBI, IRDA
c) RBI, ICRA
d) IBA, SEBI
e) CRISIL, CIBIL
32. What is Money Laundering?
a) Conversion of assets into cash
b) Conversion of cash into gold
c) Conversion of illegally obtained money into white money
d) Conversion of gold into money
e) None of these
33. "Reinsurance" means:
a) Insuring twice for the same policy holder
b) This meant for only Bank Loan Borrowers
c) This is meant for Public Sector Employees
d) It is a insurance policy issued by IRDA
e) One insurance company insuring with another big and sound insurance company to manage its probable risks.
34. Apex Bank to take care of Agriculture Credit in India is:
a) NABARD
b) Co - operative bank
c) RBI
d) SBI
e) None
35. As per RBI order, against the certificate of Deposit, the ___
a) Loan cannot be granted
b) Loan can be granted
c) Loan can be granted up to 50% of value
d) Loan can be granted up to 75% of value
e) None
36. Which of the private sector lenders introduced its own card 'Kisan Card' through which a farmer can withdraw up to Rs. 1 lakh per day from ATMs?
a) HDFC
b) ICICI
c) Axis Bank
d) Federal Bank
e) Indus Ind bank
37. ___ % Net Bank Credit (NBC) to be given to priority sector lending by foreign banks as per the order of RBI?
a) 50
b) 40
c) 60
d) 12
e) 32
38. Which one of the following is not an authorized means of banking transactions for the people in India?
a) Mobile
b) Online
c) Phone
d) Visiting Individually
e) Video Conferencing
39. For violation of FEMA, prosecution is done by:
a) RBI
b) DGFT
c) FEDAI
d) Enforcement Directorate
e) None of these
40. Loans of very Small amount given to low income group is called?
a) Cash Credit
b) No Frill Credit
c) Rural Credit
d) Micro Credit
e) Simple over Draft
ANSWERS:
1. b; 2. e; 3. c; 4. a; 5. e; 6. b; 7. c; 8. a; 9. b; 10. b;
11. c; 12. d; 13. e; 14. d; 15. d; 16. e; 17. b; 18. e; 19. a; 20. e;
21. e; 22. d; 23. b; 24. d; 25. d; 26. d; 27. d; 28. e; 29. d; 30. a;
31. e; 32. c; 33. e; 34. a; 35. a; 36. c; 37. e; 38. e; 39. d; 40. d;
