Quiznetik
Basics of Banking and Insurance | Set 2
1. In banking sector, KYC stands for
A. kid and young customers
B. know youth creditors
C. know your customers
D. know your cash requirements.
Correct : C. know your customers
2. The process of replacing physical cheque with electronic cheque is..........
A. demat
B. remat
C. truncation
D. securitisation
Correct : C. truncation
3. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFASIA) came into effect on.............
A. jan 2002
B. june 2002
C. may 2000
D. april 2001
Correct : B. june 2002
4. Commission recommended for the formation of RBI is
A. narasimham commission
B. tandem commission
C. hil ton young commission
D. none of these.
Correct : C. hil ton young commission
5. Dues made by debtors are...............
A. npa
B. nps
C. crr
D. plr
Correct : A. npa
6. ---------- represents the rate at which the central bank absorbs liquidity from the banks
A. repo
B. crr
C. plr
D. reverse repo
Correct : D. reverse repo
7. The first foreign bank which introduced merchant bank in India is
A. grindlays bank
B. hsbc
C. city bank
D. ceylon bank
Correct : A. grindlays bank
8. The first Indian public sector bank which introduced its own merchant bank division in India
A. canara bank
B. pnb
C. sbi
D. syndicate bank
Correct : C. sbi
9. Which of the following is quantitative measure of credit control of RBI
A. direct action
B. moral suasion
C. open market operation
D. margin requirement
Correct : C. open market operation
10. Banking Regulation Act passed in the year
A. 1969
B. 1934
C. 1949
D. 1956
Correct : C. 1949
11. The first development bank in India is
A. idbi
B. ifci
C. icici
D. sidbi
Correct : B. ifci
12. ICICI was established in the year
A. 1980
B. 1948
C. 1955
D. 1964
Correct : C. 1955
13. SIDBI was established as a wholly owned subsidiary of..........
A. ifci
B. sfc
C. idbi
D. rbi
Correct : C. idbi
14. The apex development bank in India is
A. ifci
B. idbi
C. sidbi
D. rbi
Correct : B. idbi
15. The apex financial institution in India is
A. ifci
B. idbi
C. nabard
D. rbi
Correct : D. rbi
16. ATM stands for...........
A. any time money
B. automatic teller machine
C. automated teller machine
D. automatic transfer money
Correct : C. automated teller machine
17. Central Land Mortgage Bank was started in Madras in
A. 1920
B. 1921
C. 1922
D. 1929
Correct : D. 1929
18. Central Co-operative banks are organised at........... level
A. taluk
B. district
C. state
D. national
Correct : B. district
19. Head quarters of RBI is
A. new delhi
B. mumbai
C. calcutta
D. nasik
Correct : B. mumbai
20. Head quarters of NABARD is
A. new delhi
B. mumbai
C. calcutta
D. nasik
Correct : B. mumbai
21. Area of operation of RRB comprises of
A. one or more district
B. a state
C. two or more states
D. taluk
Correct : A. one or more district
22. Chairman of NABARD is appointed by
A. upsc
B. ssc
C. rbi
D. central govt.
Correct : D. central govt.
23. LAB stands for......
A. lead area bank
B. local area bank
C. lending and borrowing
D. leading and banking
Correct : B. local area bank
24. Largest bank in the world (asset wise) is.......
A. bnp paribus
B. sbi
C. german bank
D. british bank of middle east
Correct : A. bnp paribus
25. Largest bank in the world in branches is.......
A. bnp paribus
B. sbi
C. german bank
D. hsbc
Correct : B. sbi
26. The present Governor of RBI is
A. bimal jalan
B. subba rao
C. raghuram rajan
D. rangarajan
Correct : C. raghuram rajan
27. Industrial Reconstruction Bank of India(IRBI) was established in the year
A. 1961
B. 1960
C. 1985
D. 1975
Correct : C. 1985
28. ............ is “Pay later product”
A. debit card
B. atm card
C. credit card
D. both a&b
Correct : C. credit card
29. ............ is “Pay now product”
A. debit card
B. atm card
C. credit card
D. charge card
Correct : A. debit card
30. Banking Ombudsman was established in...........
A. 1993
B. 1997
C. 1995
D. 1987
Correct : C. 1995
31. Another name of credit card is.......
A. debit card
B. money card
C. plastic money
D. card money
Correct : C. plastic money
32. Credit card was first time launched in the world by..........
A. british bank
B. bank of america
C. hsbc
D. sbi
Correct : B. bank of america
33. “Either of Survivor” account in a bank is............account
A. minors account
B. joint account
C. saving account
D. double account
Correct : B. joint account
34. In banking, EFT stands for......
A. economic fund transfer
B. electronic fund transfer
C. economic and financial transaction
D. entries of fund transfer
Correct : B. electronic fund transfer
35. RTGS stands for.........
A. rural transactions of government services
B. real time gross settlement
C. recurring and term gross savings
D. real time government service
Correct : B. real time gross settlement
36. A Head quarter of SIDBI is..........
A. new delhi
B. mumbai
C. calcutta
D. lucknow
Correct : D. lucknow
37. The first new generation bank starts its operation in India
A. icici
B. hdfc
C. axis bank
D. centurion
Correct : A. icici
38. The first new private sector bank is...............
A. hdfc bank
B. icici bank
C. centurion bank
D. uti bank
Correct : D. uti bank
39. Money lenders in Kerala come under purview of........
A. banking regulation act
B. indian companies act
C. kerala banking regulation act
D. kerala money lenders act
Correct : D. kerala money lenders act
40. Imperial bank of India was established by amalgamation of .......... presidency banks
A. 3
B. 5
C. 7
D. 10
Correct : A. 3
41. Custodian of National Rural Credit Stabilisation Fund
A. rbi
B. sbi
C. nabard
D. arbi
Correct : C. nabard
42. Number of public sector Banks in India
A. 14
B. 20
C. 21
D. 28
Correct : D. 28
43. A mutilated cheque will be -----------
A. crossed
B. endorsed
C. marked
D. torn
Correct : D. torn
44. FDR stands for..........
A. fiduciary deposit reserve
B. fixed deposit receipt
C. fixed depreciation rate
D. fixed deposit rate
Correct : B. fixed deposit receipt
45. The chairman of 13th Finance commission is
A. a m khushro
B. c rangarajan
C. vijay kelkar
D. bimal jalan
Correct : C. vijay kelkar
46. The first bank in the world
A. bank of america
B. federal reserve bank
C. bank of venice
D. bank of hindustan
Correct : C. bank of venice
47. The first bank in India
A. allahabad bank
B. punjab national bank
C. nedungadi bank
D. bank of hindustan
Correct : D. bank of hindustan
48. First purely Indian bank is
A. allahabad bank
B. punjab national bank
C. nedungadi bank
D. bank of hindustan
Correct : B. punjab national bank
49. The first bank in Kerala
A. federal bank
B. south malabar gramin bank
C. north malabar gramin bank
D. nedungadi bank
Correct : D. nedungadi bank
50. The first international credit card was introduced in India by
A. sbi
B. canara bank
C. andhra bank
D. bank of baroda
Correct : C. andhra bank
51. Certain percentage of the sum assured is paid periodically according to.......... policy
A. term
B. endowment
C. money back
D. group insurance
Correct : C. money back
52. The principle of indemnity does not apply to
A. burglary insurance
B. fire insurance
C. marine insurance
D. life and personal accident insurance
Correct : D. life and personal accident insurance
53. Transfer of rights and remedies of the insured to the insurer after indemnity has been effected is called
A. insurable interest
B. subrogation
C. proximate cause
D. mitigation of loss
Correct : B. subrogation
54. Guarantee for employer for the loss out of employees dishonest is
A. burglary insurance
B. fidelity insurance
C. third party insurance
D. guarantee insurance
Correct : B. fidelity insurance
55. Motor insurance has its beginning in the
A. usa
B. ussr
C. uk
D. uae
Correct : C. uk
56. Fidelity guarantee insurance does not guarantee
A. the death of the employer
B. the death of the employee
C. the employees honesty
D. the employers honesty
Correct : C. the employees honesty
57. Insurance is based on the principle of
A. co-operation
B. democracy
C. equality
D. welfare
Correct : A. co-operation
58. This policy covers all risks to the ship and its cargo while the ship is at a particular port.
A. voyage policy
B. floating policy
C. time policy
D. port risk policy
Correct : D. port risk policy
59. Fire insurance can be taken in respect of
A. movable properties only
B. immovable properties only
C. both a & b
D. persons only
Correct : C. both a & b
60. The principle of indemnity applicable to...........
A. life insurance
B. personal accident insurance
C. property insurance
D. all of these
Correct : D. all of these
61. Except life insurance the maximum term of other insurance is
A. 12 months
B. 24 months
C. 6 months
D. 36 months
Correct : A. 12 months
62. The person whose risk is insured is called
A. insured
B. assured
C. insurer
D. both a &b
Correct : D. both a &b
63. The person who agrees to compensate the loss arising from the risk is called the ........
A. insurer
B. underwriter
C. assurer
D. all of these
Correct : D. all of these
64. ............ policy matures on the assureds’ death or on his attainment of particular age whichever is earlier
A. endowment policy
B. money back policy
C. joint life policy
D. single premium policy
Correct : A. endowment policy
65. In marine insurance, insurable interest is enough at the time of........
A. claim
B. loss
C. maturity
D. insurance
Correct : B. loss
66. In fire insurance, insurable interest is enough at the time of........
A. effecting the policy
B. loss
C. maturity
D. both a & b
Correct : D. both a & b
67. ......... is an agreement whereby the insurer agrees to indemnify the insured against losses due to sea and port perils
A. fire insurance
B. marine insurance
C. life insurance
D. all the above
Correct : B. marine insurance
68. ....... are those terms, which are written on the policy
A. express warranties
B. implied warranties
C. memorandum clause
D. valuation clause
Correct : A. express warranties
69. When the subject matter insured is destroyed wholly refers to.........
A. partial total loss
B. actual total loss
C. constructive total loss
D. none of these
Correct : B. actual total loss
70. ------- policy issued on the basis of the number of persons assured
A. annuity policy
B. multiple life policy
C. single life policy
D. level premium policy
Correct : B. multiple life policy
71. Process of transferring right in respect of a policy from one person to another is
A. blank transfer
B. surrender
C. assignment
D. endorsement
Correct : C. assignment
72. ......... means a wilful and intentional act on part of self destroyer
A. death
B. suicide
C. murder
D. accident
Correct : B. suicide
73. The central office of LIC is located at
A. new delhi
B. kolkata
C. mumbai
D. chennai
Correct : C. mumbai
74. A person employed to act for another or to represent another while dealing with third party is
A. principal
B. trustee
C. agent
D. servant
Correct : C. agent
75. Maritime perils are also called..........
A. perils of the sea
B. moral hazards
C. morale hazards
D. none of these
Correct : A. perils of the sea
76. ............ policy in which the limits of the risks are determined by place of particular voyage
A. valued
B. time
C. voyage
D. unvalued
Correct : C. voyage
77. ............. policy covers the risk during a particular voyage for a specific period
A. valued
B. time
C. voyage
D. mixed
Correct : D. mixed
78. The term ‘run off or Fully declared’ refers to
A. floating policy
B. wagering policy
C. builders risk policy
D. open cover policy
Correct : A. floating policy
79. Wagering policy also known as
A. policy proof of interest
B. open policy
C. builders risk policy
D. port risk policy
Correct : A. policy proof of interest
80. Risk insured against death is a contract of.......
A. assurance
B. agreement
C. indemnity
D. all the above
Correct : A. assurance
81. Which of the following contract is not legally enforceable
A. contract of insurance
B. contract of guarantee
C. wagering contract
D. contract of indemnity
Correct : C. wagering contract
82. ................. is a document which provides evidence of the contract of insurance
A. proposal form
B. policy form
C. cover note
D. certificate of insurance
Correct : A. proposal form
83. General Insurance Corporation was established in the year
A. 1956
B. 1972
C. 1955
D. 1971
Correct : A. 1956
84. General insurance business was nationalised under
A. gibn act.1971
B. gibn act.1972
C. gibn act.1973
D. gibn act.1974
Correct : B. gibn act.1972
85. The head quarters of New India Assurance Co. Ltd is
A. new delhi
B. mumbai
C. kolkata
D. chennai
Correct : B. mumbai
86. The Head quarters of Oriental Insurance Co.ltd is
A. new delhi
B. mumbai
C. kolkata
D. chennai
Correct : A. new delhi
87. The Head office of National Insurance Co. Ltd is
A. new delhi
B. mumbai
C. kolkata
D. chennai
Correct : C. kolkata
88. The Head office of United India Insurance Co. Ltd is
A. new delhi
B. mumbai
C. kolkata
D. chennai
Correct : D. chennai
89. Life insurance in its present form came to India from
A. uk
B. usa
C. canada
D. germany
Correct : A. uk
90. LIC was set up in the year
A. 1824
B. 1823
C. 1822
D. 1821
Correct : B. 1823
91. LIC was nationalised in the year
A. 1951
B. 1952
C. 1954
D. 1956
Correct : D. 1956
92. The term “Assurance’ refers........
A. life insurance
B. fire insurance
C. marine insurance
D. none of these
Correct : A. life insurance
93. The Oriental Life Insurance Company came to India during
A. 1919
B. 1818
C. 1899
D. 1888
Correct : B. 1818
94. The policies where the premium is payable throughout the life of the assured is called
A. whole life policy
B. renewable term policy
C. sinking fund policy
D. annuity policy
Correct : A. whole life policy
95. With Profit policy is also known as.......
A. multiple life policy
B. participating policy
C. level premium policy
D. lump sum policy
Correct : B. participating policy
96. A reinsurance of reinsurance known as............
A. line
B. retention
C. retrocession
D. cession
Correct : C. retrocession
97. Reinsurance is also termed as..............
A. insurance of insurance
B. retrocession
C. double insurance
D. all of these
Correct : A. insurance of insurance
98. When the same risk and subject matter is insured with more than one insurer is called............
A. insurance of insurance
B. retrocession
C. double insurance
D. none of these
Correct : C. double insurance
99. When the amount for which a subject matter is insured more than its actual value, it is called...............
A. over insurance
B. reinsurance
C. double insurance
D. extra insurance
Correct : A. over insurance
100. IRDA refers to
A. insurance regulatory development authority
B. indian reinsurance development authority
C. insurance regulation and department accreditation
D. insurance regulatory development association
Correct : A. insurance regulatory development authority