2. The ……….is an important function of a bank and this function
distinguishes banks from the non banking institution.
Correct : C. creation of credit
3. ………..function are the core activities of banking.
Correct : B. borrowing and lending
4. Banks lend to special purpose vehicles (SPVs)in the private sector
registered under………… for directly undertaking infrastructure projects.
Correct : D. companies act.
5. Banks categorised housing loan ,education loan etc. as………
Correct : B. retail loan
6. Banks extend need based working capital facilities as well as term
loans to all NBFCs registered with………
Correct : D. reserve bank of india
7. Investment of banks in Govt. securities and other approved securities
is categorised as ……
Correct : B. slr-investment
8. Interest rate risk is a type of
Correct : B. market risk
9. Which of the following is not a motive for the companies to hold cash
Correct : D. outflows
10. VaR means
Correct : B. value at risk
11. In an inflationary trend ,the pricing of the bank products are
Correct : C. increasing tre
12. ……….is a place where inter bank claims arising on account of cheques
received for collection by each bank drawn against other banks are settled.
Correct : C. bankers clearing house
13. The primery function of central bank is to………….of the country.
Correct : B. regulate the monetary system
14. Every central bank has the monopoly right of……….
Correct : B. note issue
15. Open market operation is another important…………… wepon of credit
control.?
Correct : C. quantitative
16. ……………… is a method of credit control adopted by the modern
central banks?
Correct : C. variable reserve ratio.
17. The Govt.of India set up the ……….committee(1991) to examine all
aspects relating to structure ,organisation and the functioning of the Indian banking system.
Correct : A. narasimham
18. How many banks were in second phase of nationalisation?
Correct : C. 6
19. ……….is automation of banks across multiple –delivery channels.
Correct : D. (d) cbs
20. ……….was the first public sector bank to tap the equity market in
December 1993
Correct : C. sbi
21. Large value payment system consist of
Correct : B. rtgs
22. ………..may be defined as an exposure to a transaction with loss ,which
occurs with some probability and which can be expected, measured and minimised.
Correct : C. risk
23. What is CRR?
Correct : A. cash reserve ratio
24. ………….. banks are those banks which are incorporated outside India
and their head office are also situated outside India.
Correct : A. foreign exchange bank
25. Banks have adopted asset-liability management and stress testing as a
tool of ……….
Correct : B. risk management
26. Which of the following NBFC converted itself into a commercial Bank?
Correct : D. kotak mahindra
27. Which is the current revision & year of UCPDC?
Correct : A. ucpdc 500, 1993
28. The rate of which discounting the bills of first class banks is done by
RBI is called
Correct : A. bank rate
29. Banking ombudsman has been constituted under which act?
Correct : B. rbi act
30. The major objective of ……..was to ensure financial safety, soundness,
and solvency of banks
Correct : A. prudential norms
31. A unit of the Unit Trust of India is a
Correct : D. instrument
32. Indian Banks Association (IBA) has a common net working system
forsharing the ATM facilities in Mumbai, which is known as
Correct : B. shared payment network system
33. Arbitrage is
Correct : A. buying and selling in two markets simultaneously
34. E E F C denotes
Correct : A. exchange earners foreign currency account
35. For which of the following currencies is the Indian rupee quotedagainst
100 units of the foreign currency
Correct : C. japanese yen
36. Exchange risk in case of foreign currency Non Resident (Banks)scheme
(FCNB) is borne by
Correct : D. concerned bank
37. Consortium Advances refer to
Correct : C. joint financing by more than one bank
38. NABARD refinance for financing Self Help Groups is to the extent of
Correct : D. 100%
39. The term Allonge refers to
Correct : D. to mortgage deed for the purpose of witness
40. ……………is a system of banking in which one bank carries on its business
through a network of branches spread all over the country.
Correct : C. branch banking
41. As the credit card gives the overdraft facilities and additional………….power
to customer.
Correct : C. borrowing
42. ………..represents short-term loans granted either to the discount houses or to other banks which are obtainable at call.
Correct : B. money at call and short notice
43. Banking ombudsman means
Correct : B. a person to whom customer can approach for redress of his grievances
44. NGO is the term associated with
Correct : A. shg
45. Full form of SLR
Correct : A. statutory liquidity ratio
46. C.R.A. in banking parlance stands for
Correct : C. credit risk assessment
47. E.P.S. in share market stands for
Correct : A. earning per share
48. The Securitization and Reconstruction of Financial Asset and enforce of
Security Interest Act came into force from
Correct : B. 21.06.02
49. The powers of the Board of Directors to borrow from the bank are
mentioned in
Correct : B. memorandum of association
50. The currency Euro has been introduced w.e.f.
Correct : A. 01.01.99
51. Who is authorized to permit premature closer of PPF A/c
Correct : B. ministry of finance department of economic affairs
52. What is USGAAP?
Correct : A. united states generally accepted accounting principles
53. What is the average percentage of Banking transactions through non- branch route in private sector Banks
Correct : C. 70%
54. The C D Ratio of all schedule commercial Banks as on June 2003stood at
Correct : B. 57%
55. The Gross NPA percentage of the following country is highest in Asia
Correct : B. china
56. Credit Risk Assessment of the borrowal units is for
Correct : B. to fix the pricing of the product
57. To be categorized as a schedule Bank the minimum capital & reserve
required is
Correct : B. rs. 5 lacs
58. For Business process re-engineering and IT strategy which bank has employed ‘Gartner
Correct : A. b
59. The objective of Government to appoint Narsimhan Committee is
Correct : A. to strengthen the banking system
60. Which Bank has recently tied up with Apollo Hospital for financing medical facilities
Correct : D. sbi
61. The full form of RBS is
Correct : A. risk based supervision
62. ………….prescribes two tiers of capital for the banks.
Correct : A. basel-i
63. Pricing is equals to
Correct : C. function of risk rating
64. Under the Banking Ombudsman scheme the value of claim shouldn't exceed
Correct : D. 20 lac
65. Which Bank has introduced ‘Pre-paid Card’ first
Correct : A. obc
66. The minimum Capital Adequacy Ratio currently fixed by RBI for Banksis
Correct : C. 9%
67. Who can fix the interest rates of NRE & FCNB deposits ?
Correct : B. banks, as per the directive of rbi
68. The following is not a housing finance intermediary agency
Correct : D. sidco
69. Who is authorised to issue coin in India
Correct : B. ministry of finance
70. Bank can change interest rate without reference to its PLR in thefollowing
Correct : B. nre/ fcnb deposits
71. The maximum penal rate of interest that can be charged is restrictedto
Correct : C. maximum spre
72. Banks can change rate of interest beyond spread announced by themon
advances granted to
Correct : C. nbfc s
73. To which category of customers are banks prohibited to sanctionloans
against shares and debentures?
Correct : D. trust and endowments
74. What should be the method of valuation for advances againstshares/
debentures / bonds?
Correct : B. market price
75. Which kind of bills should not be discounted by banks as per RBIregulation?
Correct : A. customs duty
76. What action is taken if one of the customers tenders forged note?
Correct : C. note is impound
77. Head quarter of ADB is situated at
Correct : C. manila
78. Indian Companies have been allowed to invest upto US$ ---abroad
Correct : A. 10 million
79. As per Basel-I ………..capital can absorb losses without a bank being
required to cease trading.
Correct : A. tier-i
80. Which of the following definition is most correct. UCPDC 500 is
Correct : C. set of rules fram
81. If market quotes USD/INR as 43.61/63 ,at what rate can you buy USD at
the given quote.
Correct : C. 43.63
82. A new category of scheduled banks came into existence in 1975 as RRBs
under the ………
Correct : A. regional rural banks ordinance,1975.
83. The three banks recently have entered in a Mega ATM sharing pact. They
are
Correct : B. sbi, icici, hd
84. Devaluation of currency stands for
Correct : A. reducing the value of internal currency in terms of foreign currency
85. Pari Passu charge refers to a charge
Correct : C. ranking equally in priority in proportion to the lender’s share of advance
86. What are the four categories as per Kapur Committee recommendations for
loan applications under SSI segment
Correct : A. upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacs
87. The area of operation of …………banks are maximum of three geographically
neighbouring districts and they are allowed to open branches only in their area of operation.
Correct : A. local area banks
88. The banker advances money against immovable property only when the property is ……….to the banker.
Correct : B. mortgaged
89. EXIM Bank was set up on
Correct : A. january1, 1982
90. Which commission recommented the foundation of RBI
Correct : B. hilton young commission
91. At what frequency can Banks pay interest on Saving Bank Account asper
RBI guidelines
Correct : C. half yearly
92. The VSAT communication network for banks and financial
institutionslaunched by RBI is known as
Correct : D. infinet
93. ………………..is a transaction where by money is borrowed by the debtor on
the security of the movable property.
Correct : A. hypothication
94. Most modern banking systems are based on
Correct : D. fractional reserves.
95. Which bank has become the first foreign bank to open a branch inIsrael's
diamond exchange:
Correct : D. chartered bank
96. RBI controls money market qualitatively through
Correct : B. selective credit control
97. What was established in Kolkata on 1 st April 1935 in accordance with the provision of an act of the same name passed in 1934?
Correct : B. rbi
98. What unique distinction do the General Bank of India and the Bank of
Hindustan founded in and around 1786 posses in the context of Indian banking history?
Correct : C. they are first indian banks
99. The Imperial Bank of India was re-named on 30th April 1955 as what?
Correct : A. sbi
100. Which bank operates on behalf of the SBI in Nigeria and was established
in 1981?