1. ____ is raised in capital markets
a) Funds through long term securities
b) Long term loans through Govt. securities
c) Medium term loans
d) Short - term instruments
e) None of the above
2. Interest on Government securities on fixed basis is known as:
a) Bank rate
b) Coupon
c) Prime Lending Rate
d) Bench mark PLR
e) None of the above
3. As per latest guidelines _____ also attract TDS:
a) Fixed deposits
b) Reinvestment deposits
c) NRO SB
d) NRO FDR
e) Recurring deposits
4. What is meant by development Oriented banking?
a) Infrastructure financing
b) Extending loans to States, which are least developed
c) Taking up the task of development of the economy by providing support to under privileged
sections of the society
d) All of the above
e) None of the above
5. The main function of SIDBI is:
a) Promotion of SSI
b) Finance of SSI
c) Development of SSI
d) All of the above
e) None of the above
6. When a bank returns a cheque unpaid, it is called?
a) Payment of the cheque
b) Drawing of the cheque
c) Cancelling of the cheque
d) Dishonour of the cheque
e) Taking of the cheque
7. Now-a-days RBI uses Selective credit control measures rather infrequently because of:
a) Deregulation of functions
b) Autonomy given to banks
c) Comfortable liquidity
d) Reasonable inflation level
e) All of the above
8. RBI pays interest on CRR balances of banks at _____.
a) Bank Rate
b) Repo Rate
c) Bank Rate minus 2%
d) Zero %
e) None of the above
9. The Bank should comply and intimate the compliance of Award to Ombudsman within ______
a) 2 Months
b) 3 months
c) One month
d) One year
e) None of the above
10. What are the features of selective credit control?
a) They distinguish between essential and nonessential uses of Bank credit
b) Only nonessential uses are brought under the scope of Credit Bank controls
c) They affect not only the lenders but also the borrowers
d) All the above
e) None of the above
11. Which of the following are the targets for different categories of priority sector?
a) Overall target 40% of net Bank credit
b) Agriculture loans (direct and indirect) 18%
c) Priority sector target for foreign Banks is 32%
d) All of the above
e) None of the above
12. NSC (National Savings Certificates) are issued in the denominations of:
a) Rs.100
b) Rs.500
c) Rs.1000
d) Rs.5000 & Rs.10,000 only
e) All of the above
13. Which of the following can be called as intermediary in the Financial System?
a) Insurance companies
b) Banking companies
c) Mutual funds
d) All of the above
e) None of the above
14. A depositor wants to give nomination in favour of a Needy Charitable Trust. Is it acceptable to the banker?
a) Yes, anyone can be a nominee
b) No, only a blood relative should be a nominee
c) As per the discretion of the Branch Manager
d) No, as per Nomination Guide lines only Individuals can be nominated as Nominee and not institutions
e) None of the above
15. Which of the following is not an India based credit rating agency?
a) CRISIL
b) CARE
c) Standard & Poor
d) ICRA
e) None of the above
16. SMERA is an SME Rating Agency in India meant for?
a) Rating on credit worthiness of MSME
b) Rating on Quality Management
c) Rating on Training System
d) Rating on Technology usage in the organization
e) None of the above
17. Which of the following is not insured by the DICGC?
a) All Indian commercial Banks
b) Foreign Banks branches functioning in India
c) Local Area Banks
d) Cooperative Banks
e) Primary cooperative societies
18. Which of the following is not a feature of Recurring Deposit Account?
a) Rate of interest will be higher than Savings Bank Account
b) Loan facility is available on Recurring Deposit
c) No TDS on the interest earned
d) Premature closure of the Recurring Deposit Account is not allowed
e) None of the above
19. Cash Reserve Ratio is to be maintained by banks with reference to which of the following?
a) Time liabilities
b) Demand liabilities
c) Time and demand liabilities
d) Net demand and time liabilities
e) None of the above
20. What is the minimum CRR as per the relevant Act?
a) No minimum
b) 4%
c) 3%
d) 6%
e) 8%
21. Which of the following is not true in case of SARFAESI Act 2002?
a) Banks can take action of recovery of loan, in case of NPA, without intervention of court
b) Minimum Rs 1.00 lakh overdue should be in the loan account
c) Sixty days notice to be given under the Act to the defaulted borrower
d) SARFAESI Act can be implemented even if one installment in term loan is overdue
e) All of the above
22. The main function of an Asset Management Company is:
a) Hold the securities of various schemes
b) Manage the funds by making investments in various types of securities
c) Hold its property for the benefit of the unit holders
d) Act on behalf of SEBI
e) All of the above
23. Which kind of assistance is provided by EXIM Bank to Indian Companies?
a) Direct loans to exporters
b) Technology services
c) Credit for export of capital goods
d) a and b
e) All of the above
24. Which of the following includes "banking business" as per Banking Regulation Act?
a) Acceptance of deposit
b) Collection of bills
c) Buying of foreign exchange
d) All of the above
e) None of the above
25. Which of the following acts deals with the Right of Appropriation?
a) Indian Contract Act
b) Companies Act
c) Negotiable Instruments Act
d) All of the above
e) None of the above
26. Depositories hold shares in ______ form:
a) Physical
b) Dematerialized
c) Either a or b
d) Both a and b
e) None of the above
27. What is the full form of NBMSME?
a) National Bank for Micro, Small and Medium Enterprises
b) National Board for Micro, Small and Medium Enterprises
c) National Board for Micro, Selected Medium Enterprises
d) National Bank for Medium and selected Medium Entrepreneurs
e) None of the above
28. NRI Deposits are classified under:
a) Capital a/c
b) Current a/c
c) Special Foreign Deposit Account
d) Either b or c
e) None of the Above
29. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
30. _____ provides Clearing House facilities for netting of Payments and Security delivery:
a) Primary dealers
b) Banks
c) Stock exchanges
d) All of the above
e) None of the above
31. ____ is the regulatory authority for Mutual funds:
a) IRDA
b) SEBI
c) RBI
d) Ministry of Corporate affairs
e) All of the above
32. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
33. Primary dealers deal in:
a) Shares b) Insurance
c) Government securities
d) None of the above
e) All of the above
Answers:
1) a; 2) b; 3) e; 4) c; 5) d; 6) d; 7) e; 8) d; 9) c; 10) d;
11) d; 12) e; 13) d; 14) d; 15) c; 16) a; 17) e; 18) d; 19) d; 20) a;
21) d; 22) b; 23) e; 24) d; 25) a; 26) b; 27) b; 28) a; 29) c; 30) c;
31) b; 32) b; 33) c.
a) Funds through long term securities
b) Long term loans through Govt. securities
c) Medium term loans
d) Short - term instruments
e) None of the above
2. Interest on Government securities on fixed basis is known as:
a) Bank rate
b) Coupon
c) Prime Lending Rate
d) Bench mark PLR
e) None of the above
3. As per latest guidelines _____ also attract TDS:
a) Fixed deposits
b) Reinvestment deposits
c) NRO SB
d) NRO FDR
e) Recurring deposits
4. What is meant by development Oriented banking?
a) Infrastructure financing
b) Extending loans to States, which are least developed
c) Taking up the task of development of the economy by providing support to under privileged
sections of the society
d) All of the above
e) None of the above
5. The main function of SIDBI is:
a) Promotion of SSI
b) Finance of SSI
c) Development of SSI
d) All of the above
e) None of the above
6. When a bank returns a cheque unpaid, it is called?
a) Payment of the cheque
b) Drawing of the cheque
c) Cancelling of the cheque
d) Dishonour of the cheque
e) Taking of the cheque
7. Now-a-days RBI uses Selective credit control measures rather infrequently because of:
a) Deregulation of functions
b) Autonomy given to banks
c) Comfortable liquidity
d) Reasonable inflation level
e) All of the above
8. RBI pays interest on CRR balances of banks at _____.
a) Bank Rate
b) Repo Rate
c) Bank Rate minus 2%
d) Zero %
e) None of the above
9. The Bank should comply and intimate the compliance of Award to Ombudsman within ______
a) 2 Months
b) 3 months
c) One month
d) One year
e) None of the above
10. What are the features of selective credit control?
a) They distinguish between essential and nonessential uses of Bank credit
b) Only nonessential uses are brought under the scope of Credit Bank controls
c) They affect not only the lenders but also the borrowers
d) All the above
e) None of the above
11. Which of the following are the targets for different categories of priority sector?
a) Overall target 40% of net Bank credit
b) Agriculture loans (direct and indirect) 18%
c) Priority sector target for foreign Banks is 32%
d) All of the above
e) None of the above
12. NSC (National Savings Certificates) are issued in the denominations of:
a) Rs.100
b) Rs.500
c) Rs.1000
d) Rs.5000 & Rs.10,000 only
e) All of the above
13. Which of the following can be called as intermediary in the Financial System?
a) Insurance companies
b) Banking companies
c) Mutual funds
d) All of the above
e) None of the above
14. A depositor wants to give nomination in favour of a Needy Charitable Trust. Is it acceptable to the banker?
a) Yes, anyone can be a nominee
b) No, only a blood relative should be a nominee
c) As per the discretion of the Branch Manager
d) No, as per Nomination Guide lines only Individuals can be nominated as Nominee and not institutions
e) None of the above
15. Which of the following is not an India based credit rating agency?
a) CRISIL
b) CARE
c) Standard & Poor
d) ICRA
e) None of the above
16. SMERA is an SME Rating Agency in India meant for?
a) Rating on credit worthiness of MSME
b) Rating on Quality Management
c) Rating on Training System
d) Rating on Technology usage in the organization
e) None of the above
17. Which of the following is not insured by the DICGC?
a) All Indian commercial Banks
b) Foreign Banks branches functioning in India
c) Local Area Banks
d) Cooperative Banks
e) Primary cooperative societies
18. Which of the following is not a feature of Recurring Deposit Account?
a) Rate of interest will be higher than Savings Bank Account
b) Loan facility is available on Recurring Deposit
c) No TDS on the interest earned
d) Premature closure of the Recurring Deposit Account is not allowed
e) None of the above
19. Cash Reserve Ratio is to be maintained by banks with reference to which of the following?
a) Time liabilities
b) Demand liabilities
c) Time and demand liabilities
d) Net demand and time liabilities
e) None of the above
20. What is the minimum CRR as per the relevant Act?
a) No minimum
b) 4%
c) 3%
d) 6%
e) 8%
21. Which of the following is not true in case of SARFAESI Act 2002?
a) Banks can take action of recovery of loan, in case of NPA, without intervention of court
b) Minimum Rs 1.00 lakh overdue should be in the loan account
c) Sixty days notice to be given under the Act to the defaulted borrower
d) SARFAESI Act can be implemented even if one installment in term loan is overdue
e) All of the above
22. The main function of an Asset Management Company is:
a) Hold the securities of various schemes
b) Manage the funds by making investments in various types of securities
c) Hold its property for the benefit of the unit holders
d) Act on behalf of SEBI
e) All of the above
23. Which kind of assistance is provided by EXIM Bank to Indian Companies?
a) Direct loans to exporters
b) Technology services
c) Credit for export of capital goods
d) a and b
e) All of the above
24. Which of the following includes "banking business" as per Banking Regulation Act?
a) Acceptance of deposit
b) Collection of bills
c) Buying of foreign exchange
d) All of the above
e) None of the above
25. Which of the following acts deals with the Right of Appropriation?
a) Indian Contract Act
b) Companies Act
c) Negotiable Instruments Act
d) All of the above
e) None of the above
26. Depositories hold shares in ______ form:
a) Physical
b) Dematerialized
c) Either a or b
d) Both a and b
e) None of the above
27. What is the full form of NBMSME?
a) National Bank for Micro, Small and Medium Enterprises
b) National Board for Micro, Small and Medium Enterprises
c) National Board for Micro, Selected Medium Enterprises
d) National Bank for Medium and selected Medium Entrepreneurs
e) None of the above
28. NRI Deposits are classified under:
a) Capital a/c
b) Current a/c
c) Special Foreign Deposit Account
d) Either b or c
e) None of the Above
29. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
30. _____ provides Clearing House facilities for netting of Payments and Security delivery:
a) Primary dealers
b) Banks
c) Stock exchanges
d) All of the above
e) None of the above
31. ____ is the regulatory authority for Mutual funds:
a) IRDA
b) SEBI
c) RBI
d) Ministry of Corporate affairs
e) All of the above
32. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
33. Primary dealers deal in:
a) Shares b) Insurance
c) Government securities
d) None of the above
e) All of the above
Answers:
1) a; 2) b; 3) e; 4) c; 5) d; 6) d; 7) e; 8) d; 9) c; 10) d;
11) d; 12) e; 13) d; 14) d; 15) c; 16) a; 17) e; 18) d; 19) d; 20) a;
21) d; 22) b; 23) e; 24) d; 25) a; 26) b; 27) b; 28) a; 29) c; 30) c;
31) b; 32) b; 33) c.
