Banking Awareness | Set 3

1. A mortgage involves:

A. transfer of ownership

B. transfer of possession

C. transfer of interest

D. All of the above

E. None of the above

Correct : C. transfer of interest

2. “Micro Credits‖ are loans:

A. granted to distressed persons (other than farmers) to pre-pay their debt to non-institutional lenders against appropriate collateral or group security

B. not exceeding Rs. 50,000 per borrower provided by banks

C. both (a) and (b)

D. None of the above

E. Cannot be determined

Correct : C. both (a) and (b)

3. RBI issued its first banknote in Jan 1938 bearing the portrait of George IV. What was its denomination?

4. Bank holidays under Section 25 of the Negotiable Instruments Act, 1881 are declared by:

5. The tax payers data flows directly from banks to Tax Information Network (TIN). Who maintains TIN?

A. RBI

B. National Securities Depository Ltd.

C. National Securities Defense Ltd.

D. Enforcement Directorate

E. None of these

Correct : B. National Securities Depository Ltd.

6. Which of the following is not included in ‗CAMELS‘:

A. Capital Adequacy and Asset Quality

B. Management and Earning Performance

C. Employees Performance

D. Liquidity and Systems

E. None of the above

Correct : C. Employees Performance

8. ‗Ways and Means‖ advances are provided by Reserve Bank of India only to:

9. Consider these statements:- Statement I – RBI decides volume and value of banknotes to be Statement II – RBI decides volume and value coins to be minted.

A. Both are true.

B. Both are false.

C. Statement I is true, but statement II is false.

D. Statement I is false, whereas II is true.

E. None of these

Correct : C. Statement I is true, but statement II is false.

10. When a cheque is drawn on a bank, the bank is called the ?

11. Balance in a current account is classified as

12. Capital adequacy is worked out based on?

A. Total demand and time liabilities

B. Net demand and time assets

C. Risk weighted assets

D. Risk weighted liabilities

E. None of the above

Correct : C. Risk weighted assets

13. In which of the following types of banking, there is a direct execution of transaction between a bank and its consumers?

14. “CAMEL model‖ is used by ?

A. Bankers to evaluate a credit proposal

B. Bankers to manage their risks

C. RBI inspectors to evaluate banks functions

D. Merchant Bankers to evaluate portfolio investment

E. None of the above

Correct : C. RBI inspectors to evaluate banks functions

16. Which of the following instruments is not a Negotiable Instrument, as per NI Act, 1881?

17. Deposits under Foreign Currency Non- Resident(FCNR) scheme can be accepted for a minimum of

18. One of the State Government avails of a temporary financial assistance from Reserve Bank of India. This type of finance is called ?

20. Nationalized Bank is also known as .

21. In which of the following accounts, operation by cheques is permitted?

A. Savings bank accounts and fixed deposit accounts

B. Current accounts and fixed deposit accounts

C. Savings bank accounts and floating loan accounts

D. Savings bank accounts and cash accounts

E. Savings banks accounts and current accounts

Correct : E. Savings banks accounts and current accounts

22. Which of the following is NOT comes under the functions of Banks?

A. Accept demand and time deposits from the public

B. Accept items for keeping in safe custody

C. Sell gold coins

D. Buy commodities for trading

E. Accept foreign currency for selling to money changers

Correct : D. Buy commodities for trading

23. RTGS enables .

A. Immediate transfer of money from customer of one bank to customer of another bank

B. Immediate transfer of money from customer of one bank to customer of another branch within the same bank

C. Immediate transfer of money from customer of another country

D. Immediate transfer of money from customer of one bank to customer of RBI

E. None of these

Correct : A. Immediate transfer of money from customer of one bank to customer of another bank

24. Which among the following is the private sector banks?

25. Travellers Cheque is .

A. A supplementary credit card

B. A cheque issued by a bank or finance institution which functions as capital

C. A certificate issued by a bank or finance institution in lieu of cash

D. A cheque issued by a bank or finance institution which functions as a bond

E. A prepaid instrument issued by a bank or financial institutions which can be substitute of cash

Correct : E. A prepaid instrument issued by a bank or financial institutions which can be substitute of cash

26. Mortgage is a security created on .

A. Movable property for a loan given by a bank

B. Immovable property for a deposit received by a bank

C. A confirmation of immovable property given by a bank

D. Movable property for a deposit given by a bank

E. Immovable property for a loan given by a bank

Correct : E. Immovable property for a loan given by a bank

27. Foreign exchange Reserves in India are kept in the custody of .

28. What is the full form of the name ‗ILO‘ an agency of the United Nations?

A. International Labour Organization

B. International Legal Organization

C. Indian Labour Organization

D. Information & Legal Organization

E. Indian Lawyer’s Organization

Correct : A. International Labour Organization

29. For using the safe deposit locker facilities, bank customers pay .

30. Expand MAT related to tax?

A. Minimum Additional Tax

B. Maximum Alternative Tax

C. Maximum Additional Tax

D. Minimum Alternative Tax

E. None of these

Correct : D. Minimum Alternative Tax

31. Local Area Banks

A. are licensed under the Banking Regulation Act, 1956

B. are eligible for inclusion in the Second Schedule to the Reserve bank of India Act, 1934

C. Have minimum paid up capital of Rs. 5 crore with promoters’ contribution being at least Rs. 2 crore

D. all of the above

E. none of the above

Correct : D. all of the above

33. Which of the following is the first Universal Bank established in India?

34. What is the objective of introduction of ‗Marginal Standing Facility‘ by RBI?

A. To contain volatility in the overnight inter-bank rates

B. To contain volatility in MIBOR

C. To contain volatility in LIBOR

D. To match with standard Tier 1 capital Ratio

E. None of these

Correct : A. To contain volatility in the overnight inter-bank rates

35. The term ‗Merchant Banking‘ connotes

A. Services rendered by banks for merchants and traders capital requirements to merchants covered under DICGC Guarantee Scheme

B. Telegraphic transfers effected by merchants

C. Catering to the needs of corporate customers raising finance

D. All of the above

E. none of the above

Correct : C. Catering to the needs of corporate customers raising finance

36. Expand FRBM.

A. Financial Responsibility and Budget Management

B. Fiscal Responsibility and Budget Maintenance

C. Fiscal Responsibility and Budget Management

D. Fiscal Risk and Budget Management

E. None of these

Correct : C. Fiscal Responsibility and Budget Management

37. The promoters of Local Area Banks may comprise

38. The regional Rural Banks are sponsored by

A. Unit Trust of India

B. Reserve Bank of India

C. Life Insurance Corporation of India

D. NABARD

E. Any Scheduled Commercial bank

Correct : E. Any Scheduled Commercial bank

39. Deficit financing can (these are also demerits of it)

40. Central co-operative banks

A. occupy a crucial importance in the co-operative credit structure

B. from an important link between the state co- operative bank at the apex and the primary agricultural credit societies at the base

C. are closer to the primary societies than an apex bank could be

D. all of the above

E. none of the above

Correct : D. all of the above

41. If the RBI wants to infuse credit in Banking system in our country, which of the followings can be done?

42. If the rupees depreciate, what is the effect on the exporters?

43. Under merchant banking, consultancy services are rendered by banks/merchant bankers for

A. floating of new companies

B. preparation, planning and execution of new projects

C. giving expert guidance and managing the new promotions or new promotions of industries/enterprises

D. all of the above

E. none of the above

Correct : D. all of the above

44. When the Government of India cannot raise enough financial resources through taxation, it finances its expenditure through various means like borrowing from market, running down its balances with RBI etc. This can be exactly called as

45. Under the Banking Regulation Act, 1949, which of the following is not qualified to be called as banks in the co-operative sector?

A. Urban Co-operative banks

B. State Co-operative banks

C. Primary Agricultural Credit Societies

D. Central Co-operative Banks

E. None of the above

Correct : C. Primary Agricultural Credit Societies

46. Buying and selling of eligible securities by RBI in the money market can be termed as

A. Open Economy Operations

B. Open Market Operations

C. Credit Control Measures

D. Credit Creation Measures

E. None of these

Correct : B. Open Market Operations

47. Which of the following is the private sector Bank in India?

49. Which of the following conditions must be fulfilled before a bank is included in the Second Schedule to the Reserve Bank of India Act?

A. It must be a State co-operative bank or a company as defined in the Companies Act, 1956 or an institution notified by the Central Government in this behalf or a corporation or a company incorporated by or under any law in force in any place outside

B. It must satisfy the Reserve Bank of India that its affairs are not being conducted in a manner detrimental to the interests of the depositors

C. It must have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lakh

D. Only (a) and (b)

E. All of the above

Correct : E. All of the above

50. Which of the following is NOT a type of cheque issued by an individual?

51. Name the person Currently who is the Governor of the RBI ?

52. Which of the following appears in the balance sheet of a company?

53. Cash Reserve Ratio (CRR) is to be maintained on Net Demand and Time Liabilities (NDTL). SLR is thus required to be maintained on ?

A. Total Demand and Time Liabilities

B. Net Demand and Time Liabilities

C. Total Demand and Time Assets

D. Net Demand and Time Asset

E. None of the above

Correct : B. Net Demand and Time Liabilities

55. CASA is basically the combination of Current account and saving account deposits with a Bank. Why do the Banks put greater emphasis on mobilizing a high CASA ratio?

A. In order to fulfill RBI stipulation for it

B. It helps reduction in average cost of funds

C. These are stable deposits

D. These help Banks maintain a healthy asset- liability ratio

E. None of the Above

Correct : B. It helps reduction in average cost of funds

56. The main foreign exchange reserves in the country are:

58. In Banking parlance, ‗NPA‘ stands for

59. is the duty applied by a government to control the exports of an article of trade, so that the article of trade can be used by the local markets rather than in foreign countries.

60. Which of the following fall under the qualitative method of credit control adopted by the Reserve bank of India?

62. Under which category will you classify Regional Rural Bank?

63. What does FSDC stand for?

A. Financial Security and Development Council

B. Financial Stability and Development Council

C. Fiscal Security and Development Council

D. Fiscal Stability and Development Council

E. None of these

Correct : B. Financial Stability and Development Council

68. The inflation led by rising food prices caused by increased demand for agricultural commodities is called –

69. Which of the following type of budgeting being used in India?

70. Rise in inflation rate leads to decline in ?

A. Interest rate

B. Raise in the deposits in the banks

C. Decrease the real interest rate

D. Raise the credit growth by banks

E. None of the above

Correct : C. Decrease the real interest rate

71. The sheet of record which contains all monetary transaction between an country and the rest of the world is called –

72. Some bank are financing projects like ―Construction Roads/Bridges Etc.

A. Developing Core Sector Industry

B. Project Management

C. Infrastructure Development

D. Financial Inclusion

E. All of these

Correct : C. Infrastructure Development

73. Fiscal deficit is .

A. Total income less government borrowing

B. Total payments less total receipts

C. Total payments less capital receipts

D. Total expenditure less total receipts excluding borrowing

E. None of these

Correct : D. Total expenditure less total receipts excluding borrowing

74. On the current account balances maintained by the Regional Rural Banks with them, the commercial banks may

A. Pay interest up to 9 per cent

B. Pay interest at such rate as may be mutually agreed to

C. Pay interest as applicable to savings accounts

D. Waive incidental charges

E. All of the above

Correct : B. Pay interest at such rate as may be mutually agreed to

75. The one-rupee note bears the signature of .

77. The Bank shall have to state their lending policies. These would include

A. Exposure limits and eligible borrowers

B. Documentation standards, maturity and pricing options

C. Write off review procedures

D. All the above

E. None of these

Correct : D. All the above

79. What is the limitation period for filing a case in a Consumer court?

A. Two years from the date of cause of action

B. Two years from the date purchase of good or service

C. Three year from the date of cause of action

D. One month from the date of purchase

E. None of these

Correct : A. Two years from the date of cause of action

80. The tax levied by Local Governments i.e. Municipal Corporations and municipalities is .

82. For which of the following bank account there is no deduction of TDS?

83. The banks get benefited most from which of the following entity ?

86. Which amongst the following is not term deposits issued by commercial banks?

87. Which among the following bank has offered the best interest on saving accounts in India by Jan 2015?

88. IFSC in a cheque means:

A. Indian Financial System Code

B. It has 11 digits alpha numeric

C. First 4 digits represent Bank Name

D. This code is used in remitting funds through RTGS and NEFT

E. All the above

Correct : E. All the above

89. M-wallet (mobile wallet) application called Buddy lauched by which of the following bank?

90. Which of the following statements is correct about banks?

A. Banks cannot accept demand and time deposits from public.

B. Banks can accept only time deposits from public.

C. Banks can accept both demand and time deposits from public.

D. Banks can accept demand and time deposits only from government.

E. None of the above

Correct : C. Banks can accept both demand and time deposits from public.

91. Which committee is heading the conversion of Urban Cooperative Banks into Regular Banks?

92. Banking Ombudsman services are available to:

A. All Scheduled Commercial Banks

B. Regional Rural Banks

C. Scheduled Primary Co-operative Banks

D. Only a & c

E. All the above

Correct : E. All the above

93. When the conversion rate of our currency goes high in compared to other currency , it is known as-

94. The announcement of Bank holidays on 2nd and 4th Saturday will be effective from-

95. "Allonge" is

A. A piece of paper for making endorsements

B. A piece of paper attached to a negotiable instrument for making available more space for further endorsements

C. Both a and b

D. Duplicate DD issued to a customer

E. Bill payable after sight

Correct : B. A piece of paper attached to a negotiable instrument for making available more space for further endorsements

96. Which of the following is not the function of Payment bank?

98. In which of the following market does devaluation of currency happen?

99. Mutual Fund Scheme that operates continuously without any limit entry for subscriptions and redemptions is:

100. Which of the following Indian company sets it record to be the first company to overtake its parent company in terms of ‗market valuation‘?

Quiznetik

Banking Awareness | Set 3

1. A mortgage involves:

2. “Micro Credits‖ are loans:

3. RBI issued its first banknote in Jan 1938 bearing the portrait of George IV. What was its denomination?

4. Bank holidays under Section 25 of the Negotiable Instruments Act, 1881 are declared by:

5. The tax payers data flows directly from banks to Tax Information Network (TIN). Who maintains TIN?

6. Which of the following is not included in ‗CAMELS‘:

7. When were banknotes in the Mahatma Gandhi Series introduced?

8. ‗Ways and Means‖ advances are provided by Reserve Bank of India only to:

9. Consider these statements:- Statement I – RBI decides volume and value of banknotes to be Statement II – RBI decides volume and value coins to be minted.

10. When a cheque is drawn on a bank, the bank is called the ?

11. Balance in a current account is classified as

12. Capital adequacy is worked out based on?

13. In which of the following types of banking, there is a direct execution of transaction between a bank and its consumers?

14. “CAMEL model‖ is used by ?

15. The Foreign exchange of India is kept with

16. Which of the following instruments is not a Negotiable Instrument, as per NI Act, 1881?

17. Deposits under Foreign Currency Non- Resident(FCNR) scheme can be accepted for a minimum of

18. One of the State Government avails of a temporary financial assistance from Reserve Bank of India. This type of finance is called ?

19. Which of the following forms of securing a loan is the safest one?

20. Nationalized Bank is also known as .

21. In which of the following accounts, operation by cheques is permitted?

22. Which of the following is NOT comes under the functions of Banks?

23. RTGS enables .

24. Which among the following is the private sector banks?

25. Travellers Cheque is .

26. Mortgage is a security created on .

27. Foreign exchange Reserves in India are kept in the custody of .

28. What is the full form of the name ‗ILO‘ an agency of the United Nations?

29. For using the safe deposit locker facilities, bank customers pay .

30. Expand MAT related to tax?

31. Local Area Banks

32. Which agency in India provides refinance of export credit?

33. Which of the following is the first Universal Bank established in India?

34. What is the objective of introduction of ‗Marginal Standing Facility‘ by RBI?

35. The term ‗Merchant Banking‘ connotes

36. Expand FRBM.

37. The promoters of Local Area Banks may comprise

38. The regional Rural Banks are sponsored by

39. Deficit financing can (these are also demerits of it)

40. Central co-operative banks

41. If the RBI wants to infuse credit in Banking system in our country, which of the followings can be done?

42. If the rupees depreciate, what is the effect on the exporters?

43. Under merchant banking, consultancy services are rendered by banks/merchant bankers for

44. When the Government of India cannot raise enough financial resources through taxation, it finances its expenditure through various means like borrowing from market, running down its balances with RBI etc. This can be exactly called as

45. Under the Banking Regulation Act, 1949, which of the following is not qualified to be called as banks in the co-operative sector?

46. Buying and selling of eligible securities by RBI in the money market can be termed as

47. Which of the following is the private sector Bank in India?

48. Which of the following terms NOT used in the field of Banking & Finance?

49. Which of the following conditions must be fulfilled before a bank is included in the Second Schedule to the Reserve Bank of India Act?

50. Which of the following is NOT a type of cheque issued by an individual?

51. Name the person Currently who is the Governor of the RBI ?

52. Which of the following appears in the balance sheet of a company?

53. Cash Reserve Ratio (CRR) is to be maintained on Net Demand and Time Liabilities (NDTL). SLR is thus required to be maintained on ?

54. What does M stand for In CAMELS?

55. CASA is basically the combination of Current account and saving account deposits with a Bank. Why do the Banks put greater emphasis on mobilizing a high CASA ratio?

56. The main foreign exchange reserves in the country are:

57. What is current Reverse Repo rate?

58. In Banking parlance, ‗NPA‘ stands for

59. is the duty applied by a government to control the exports of an article of trade, so that the article of trade can be used by the local markets rather than in foreign countries.

60. Which of the following fall under the qualitative method of credit control adopted by the Reserve bank of India?

61. The treasury bills are issued at a

62. Under which category will you classify Regional Rural Bank?

63. What does FSDC stand for?

64. The Headquarter of Bank of India is located in which of the following city?

65. DAX is the stock exchange of ?

66. What does ‗L‘ stands for in term CBLO?

67. Indian paper currency is minted in Mysore and also in ?

68. The inflation led by rising food prices caused by increased demand for agricultural commodities is called –

69. Which of the following type of budgeting being used in India?

70. Rise in inflation rate leads to decline in ?

71. The sheet of record which contains all monetary transaction between an country and the rest of the world is called –

72. Some bank are financing projects like ―Construction Roads/Bridges Etc.

73. Fiscal deficit is .

74. On the current account balances maintained by the Regional Rural Banks with them, the commercial banks may

75. The one-rupee note bears the signature of .

76. RBI was nationalized in the year

77. The Bank shall have to state their lending policies. These would include

78. What does ‗T‘ in RTGS stand for?