1. Fiscal Policy is composed of several parts which include?
a) Tax Policy and Expenditure Policy
b) Investment or Disinvestment Strategies
c) Debt or Surplus Management
d) All of the Above
e) None of the above
2. Rural Infrastructure Development fund (RIDF) is financed by?
a) Selected group of public Sector Banks
b) Ministry of Rural Development
c) Reserve Bank of India
d) NABARD
e) None of the above
3. The bank conducts Government business
as an agent of ?
a) Union and state Government
b) Reserve Bank of India
c) State Bank of India
d) SIDBI
e) None of the above
4. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form?
a) Reserve Bank of India
b) Imperial Bank of India
c) Bank of India
d) Union Bank of India
e) None of the above
5. India's largest commercial bank is?
a) Central Bank of India
b) State Bank of India
c) Indian overseas bank
d) Bank of India
e) Punjab National Bank
6. Interest on the savings bank accounts is compounded?
a) Daily
b) Yearly
c) Quarterly
d) Half-yearly
e) All of the above
7. Rates of Interest on deposits are determined by?
a) IBA
b) Ministry of Finance
c) The Bank Itself
d) Government of India
e) Other than the given
8. Current account becomes dormant when there are no withdrawals for the last?
a) 3 months
b) 6 months
c) 24 months
d) 12 months
e) None of the above
9. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a ‘banking company’ means any company which
a) accepts deposits from the public
b) undertakes lending of money
c) transacts the business of banking in
d) All of the above
e) None of the above
10.Which of the following is not a negotiable instrument ?
a) Cheque
b) Pay order
c) Bill of Exchange
d) All of the above are negotiable instruments
e) Other than the given
11. “Currency Swap” is an instrument to manage?
a) Currency Risk
b) Interest Rate Risk
c) Currency and Interest Rate Risk
d) Cash Flows in different currencies
e) All of the above
12. “Plastic Money” denotes?
a) Bearer cheque
b) Credit card
c) Demand Draft
d) Traveller’s cheque
e) Gift cheque
13. National Income of India is estimated by?
a) Central Estimates Survey Committee
b) National Sample Survey Committee
c) Central Statistical Organization
d) Finance Ministry
e) Other than the given
14. Nomination facility is available to?
a) Individuals/Sole Proprietorship accounts/Private Limited Companies
b) Individuals/Sole Proprietorship Accounts/Partnership Accounts
c) Individuals/Sole Proprietorship Accounts
d) All of the above
e) Other than the given
15. Off Shore Banking Unit is?
a) a unit which is situated in Foreign country
b) a unit which is situated in Special Economic Zones and deals in foreign currency only
c) a unit which is actively participating in lending foreign currency loans and in joint ventures
d) All of the above
e) None of the above
16. If a currency note is demonetized, it takes away the ....... of that currency.
a) legal tender character
b) exchange rate
c) value
d) All of the above
e) Other than the given
17. Currency Note containing political slogan is not a legal tender as per:
a) Legal Tender (Inscribed Notes) Act, 1964
b) Negotiable Instruments Act, 1881
c) Reserve Bank of India Act
d) All of the above
e) Other than the given
18. Deposits under NRE/FCNB accounts are linked to?
a) Base Rate
b) SIBOR
c) LIBOR
d) All of the above
e) Other than the given
19. Electronic Fund Transfer scheme of RBI has been renamed as?
a) Clearing
b) Core Banking Solutions
c) Real Time Gross Settlement
d) National Electronic Fund Transfer
e) All of the above
20. Which private bank is recently merged with Kotak Mahindra Bank (KMB)?
a) ING Vysya Bank
b) KarurVysya Bank
c) Lakshmi Vilas Bank
d) Jammu and Kashmir Bank
e) Other than the given
21. Which one of the following rates is not decided by RBI?
a) Repo rate
b) Base rate
c) Bank rate
d) Marginal Standing Facility (MSF) rate
e) Other than the given
22. Which of the following bank is generally not considered as Commercial bank?
a) Public Sector Bank
b) Private Sector Bank
c) Development Bank
d) Foreign Bank
e) Other than the given
23. Which two private sector banks have got license from RBI in 2014?
a) Bandhan and Yes Bank
b) Yes Bank and IDFC
c) IDFC Bank and Bandhan Bank
d) Axis Bank and ICICI
e) Other than the given
24. Which bank first introduced Automated Teller Machine (ATM) in India (1987)?
a) SBI
b) Punjab National Bank
c) Federal Bank
d) HSBC
e) Other than the given
25. Refinance facility is provided by NABARD. Which institutions can avail this facility?
a) State cooperative banks
b) Regional rural banks
c) Commercial bank
d) All of the above
e) Other than the given
26. Which of the following is true?
a) NBFCs can accept deposits from the public
b) NBFCs cannot offer deposit schemes to the public
c) Deposits of NBFCs are insured with DICGC
d) NBFCs can accept deposits from public if they are registered and permitted by RBI
e) Other than the given
27. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?
a) Individual Banks’ Board
b) Ministry of Commerce
c) Ministry of Finance
d) Rreserve Bank of India
e) Interest Rate Commission of India
28. Commercial banks are the largest category of financial intermediaries; others include?
a) Life-insurance companies
b) Pension funds
c) Savings and loan institutions
d) All of the above
e) None of the above
29. An average citizen cannot open a Savings account in which of the following?
a) Commercial bank
b) Post office
c) Co-operative bank
d) RBI
e) Other than the given
30. Educational for All Development Index is released by?
a) IMF
b) World Bank
c) UNO
d) WTO
e) Other than the given
31. Non-Agricultural Market Access (NAMA) word is related to which organization?
a) WTO
b) UNCTAD
c) IMF
d) World Bank
e) NDB
32. RBI has introduced “Marginal Standing Facility” with the objective of:
a) Controlling Inflation
b) Containing instability in long term inter-bank rates
c) Containing instability in the overnight inter-bank rates
d) All of the above
e) None of the above
33. Which of the following is not a measure to control inflation as adopted by Govt. of India and/or RBI?
a) Monetary Policy
b) Fiscal Policy
c) Financial Inclusion
d) Price control
e) Bank Rate Policy
34. card is basically a payment mechanism which allows the holder to make purchase without any immediate cash outflows either physically or through his accounts?
a) Debit
b) Smart
c) Credit
d) ATM
e) Kisan Credit
35. The Negotiable Instruments Act deals with?
a) Cheques, demand drafts, banker’s cheques
b) Promissory notes, bills of exchange and cheques
c) Bills of exchange, Cheques and demand drafts
d) Cheques, demand drafts and saving bank withdrawal forms
e) None of the above
36. Small Industries Development Bank of India’s Single Window scheme means that a borrower is granted?
a) Both term loan for fixed assets & loan for working capital through the same agency, namely, SFCs or Commercial Banks
b) Both term and working capital through SIDBI itself
c) Both term loan and working capital hrough IDBI
d) All of the above
e) None of the above
37. has been declared the first ‘total banking state’ in India, successfully implementing the total financial inclusion thereby ensuring banking facility to all households.
a) Maharashtra
b) Kerala
c) Himachal Pradesh
d) Uttarakhand
e) None of the above
38. What do you understand by the term ‘Mortgage’?
a) Sale of moveable security in the event of default by the borrower
b) Registration of charge with the Registrar of Companies
c) Making the security of immovable property avail able as a cover for a home loan by the borrower
d) Registration of charge with the Regional Transport Authority
e) Returning of the security to borrower by the bank of receipt of full payment
39.Which of the following acts is useful in controlling HAWALA transactions?
a) FEMA Act
b) RBI Act
c) DICGC Act
d) Banking Regulation Act
e) None of the above
40.CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for?
a) Currency
b) Compensation
c) Capital Adequacy
d) Capitalisation
e) None of the above
ANSWERS
1.d 2.d 3.b 4.b 5.b 6.a 7.c 8.c 9.d 10.d
11.d 12.b 13.c 14.c 15.b 16.a 17.a 18.c 19.c 20.a
21.b 22.c 23.c 24.d 25.d 26.d 27.a 28.d 29.d 30.c
31.a 32.c 33.b 34.c 35.c 36.a 37.b 38.c 39.a 40.c
a) Tax Policy and Expenditure Policy
b) Investment or Disinvestment Strategies
c) Debt or Surplus Management
d) All of the Above
e) None of the above
2. Rural Infrastructure Development fund (RIDF) is financed by?
a) Selected group of public Sector Banks
b) Ministry of Rural Development
c) Reserve Bank of India
d) NABARD
e) None of the above
3. The bank conducts Government business
as an agent of ?
a) Union and state Government
b) Reserve Bank of India
c) State Bank of India
d) SIDBI
e) None of the above
4. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form?
a) Reserve Bank of India
b) Imperial Bank of India
c) Bank of India
d) Union Bank of India
e) None of the above
5. India's largest commercial bank is?
a) Central Bank of India
b) State Bank of India
c) Indian overseas bank
d) Bank of India
e) Punjab National Bank
6. Interest on the savings bank accounts is compounded?
a) Daily
b) Yearly
c) Quarterly
d) Half-yearly
e) All of the above
7. Rates of Interest on deposits are determined by?
a) IBA
b) Ministry of Finance
c) The Bank Itself
d) Government of India
e) Other than the given
8. Current account becomes dormant when there are no withdrawals for the last?
a) 3 months
b) 6 months
c) 24 months
d) 12 months
e) None of the above
9. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a ‘banking company’ means any company which
a) accepts deposits from the public
b) undertakes lending of money
c) transacts the business of banking in
d) All of the above
e) None of the above
10.Which of the following is not a negotiable instrument ?
a) Cheque
b) Pay order
c) Bill of Exchange
d) All of the above are negotiable instruments
e) Other than the given
11. “Currency Swap” is an instrument to manage?
a) Currency Risk
b) Interest Rate Risk
c) Currency and Interest Rate Risk
d) Cash Flows in different currencies
e) All of the above
12. “Plastic Money” denotes?
a) Bearer cheque
b) Credit card
c) Demand Draft
d) Traveller’s cheque
e) Gift cheque
13. National Income of India is estimated by?
a) Central Estimates Survey Committee
b) National Sample Survey Committee
c) Central Statistical Organization
d) Finance Ministry
e) Other than the given
14. Nomination facility is available to?
a) Individuals/Sole Proprietorship accounts/Private Limited Companies
b) Individuals/Sole Proprietorship Accounts/Partnership Accounts
c) Individuals/Sole Proprietorship Accounts
d) All of the above
e) Other than the given
15. Off Shore Banking Unit is?
a) a unit which is situated in Foreign country
b) a unit which is situated in Special Economic Zones and deals in foreign currency only
c) a unit which is actively participating in lending foreign currency loans and in joint ventures
d) All of the above
e) None of the above
16. If a currency note is demonetized, it takes away the ....... of that currency.
a) legal tender character
b) exchange rate
c) value
d) All of the above
e) Other than the given
17. Currency Note containing political slogan is not a legal tender as per:
a) Legal Tender (Inscribed Notes) Act, 1964
b) Negotiable Instruments Act, 1881
c) Reserve Bank of India Act
d) All of the above
e) Other than the given
18. Deposits under NRE/FCNB accounts are linked to?
a) Base Rate
b) SIBOR
c) LIBOR
d) All of the above
e) Other than the given
19. Electronic Fund Transfer scheme of RBI has been renamed as?
a) Clearing
b) Core Banking Solutions
c) Real Time Gross Settlement
d) National Electronic Fund Transfer
e) All of the above
20. Which private bank is recently merged with Kotak Mahindra Bank (KMB)?
a) ING Vysya Bank
b) KarurVysya Bank
c) Lakshmi Vilas Bank
d) Jammu and Kashmir Bank
e) Other than the given
21. Which one of the following rates is not decided by RBI?
a) Repo rate
b) Base rate
c) Bank rate
d) Marginal Standing Facility (MSF) rate
e) Other than the given
22. Which of the following bank is generally not considered as Commercial bank?
a) Public Sector Bank
b) Private Sector Bank
c) Development Bank
d) Foreign Bank
e) Other than the given
23. Which two private sector banks have got license from RBI in 2014?
a) Bandhan and Yes Bank
b) Yes Bank and IDFC
c) IDFC Bank and Bandhan Bank
d) Axis Bank and ICICI
e) Other than the given
24. Which bank first introduced Automated Teller Machine (ATM) in India (1987)?
a) SBI
b) Punjab National Bank
c) Federal Bank
d) HSBC
e) Other than the given
25. Refinance facility is provided by NABARD. Which institutions can avail this facility?
a) State cooperative banks
b) Regional rural banks
c) Commercial bank
d) All of the above
e) Other than the given
26. Which of the following is true?
a) NBFCs can accept deposits from the public
b) NBFCs cannot offer deposit schemes to the public
c) Deposits of NBFCs are insured with DICGC
d) NBFCs can accept deposits from public if they are registered and permitted by RBI
e) Other than the given
27. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?
a) Individual Banks’ Board
b) Ministry of Commerce
c) Ministry of Finance
d) Rreserve Bank of India
e) Interest Rate Commission of India
28. Commercial banks are the largest category of financial intermediaries; others include?
a) Life-insurance companies
b) Pension funds
c) Savings and loan institutions
d) All of the above
e) None of the above
29. An average citizen cannot open a Savings account in which of the following?
a) Commercial bank
b) Post office
c) Co-operative bank
d) RBI
e) Other than the given
30. Educational for All Development Index is released by?
a) IMF
b) World Bank
c) UNO
d) WTO
e) Other than the given
31. Non-Agricultural Market Access (NAMA) word is related to which organization?
a) WTO
b) UNCTAD
c) IMF
d) World Bank
e) NDB
32. RBI has introduced “Marginal Standing Facility” with the objective of:
a) Controlling Inflation
b) Containing instability in long term inter-bank rates
c) Containing instability in the overnight inter-bank rates
d) All of the above
e) None of the above
33. Which of the following is not a measure to control inflation as adopted by Govt. of India and/or RBI?
a) Monetary Policy
b) Fiscal Policy
c) Financial Inclusion
d) Price control
e) Bank Rate Policy
34. card is basically a payment mechanism which allows the holder to make purchase without any immediate cash outflows either physically or through his accounts?
a) Debit
b) Smart
c) Credit
d) ATM
e) Kisan Credit
35. The Negotiable Instruments Act deals with?
a) Cheques, demand drafts, banker’s cheques
b) Promissory notes, bills of exchange and cheques
c) Bills of exchange, Cheques and demand drafts
d) Cheques, demand drafts and saving bank withdrawal forms
e) None of the above
36. Small Industries Development Bank of India’s Single Window scheme means that a borrower is granted?
a) Both term loan for fixed assets & loan for working capital through the same agency, namely, SFCs or Commercial Banks
b) Both term and working capital through SIDBI itself
c) Both term loan and working capital hrough IDBI
d) All of the above
e) None of the above
37. has been declared the first ‘total banking state’ in India, successfully implementing the total financial inclusion thereby ensuring banking facility to all households.
a) Maharashtra
b) Kerala
c) Himachal Pradesh
d) Uttarakhand
e) None of the above
38. What do you understand by the term ‘Mortgage’?
a) Sale of moveable security in the event of default by the borrower
b) Registration of charge with the Registrar of Companies
c) Making the security of immovable property avail able as a cover for a home loan by the borrower
d) Registration of charge with the Regional Transport Authority
e) Returning of the security to borrower by the bank of receipt of full payment
39.Which of the following acts is useful in controlling HAWALA transactions?
a) FEMA Act
b) RBI Act
c) DICGC Act
d) Banking Regulation Act
e) None of the above
40.CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for?
a) Currency
b) Compensation
c) Capital Adequacy
d) Capitalisation
e) None of the above
ANSWERS
1.d 2.d 3.b 4.b 5.b 6.a 7.c 8.c 9.d 10.d
11.d 12.b 13.c 14.c 15.b 16.a 17.a 18.c 19.c 20.a
21.b 22.c 23.c 24.d 25.d 26.d 27.a 28.d 29.d 30.c
31.a 32.c 33.b 34.c 35.c 36.a 37.b 38.c 39.a 40.c
