ASSSS

FAQ BANKING 250

PART I

YASHSHREE COMPETITION ZONE

BY- SUSHANT BHAGAT

www.yashshree.net

BANKING & FINANCIAL OBJECTIVE FAQ

RBI/SBI/IBPS/RRB- PO & Assistant.

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BANKING AND FINANCIAL OBJ 500 FAQ ( YASHSHREE COMPETITION ZONE)

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1. On the recommendation of which committee was NABARD established? (a) Shivraman (b) Rangarajan(c) Malegam (d) Vijay Kelkar 2. ‘Swabhiman’, the financial inclusion scheme, comes under the purview of which ministry? (a) Ministry of Commerce (b) Ministry of Home Affairs (c) Ministry of Finance (d) Ministry of External Affairs 3. RBI was established on ? (a) April 1, 1925 (b) April 1, 1935(c) April 1, 1945 (d) April 1, 1955 4. The one-rupee note bears the signature of? (a) RBI Governor (b) Deputy Governor(c) Finance Secretary (d) Finance Minister 5. Which among the following does the RBI not decide? (a) CAR (b) CRR (c) Base Rate (d) Bank Rate 6. What does ‘T’ in RTGS stand for? (a) Transaction (b) Transfer (c) Tax (d) Time 7. In banking, IFSC code stands for? (a) International Format System Code (b) Indian Function System Code (c) International Forex System Code (d) Indian Financial System Code 8. If a customer does not get a satisfactory response to his grievance from the bank within _____ days, then he can approach the Banking Ombudsman? (a) 60 (b) 90 (c) 30 (d) 15 9. Which of the following organizations is the Mutual Fund/credit rating agency Market regulator? (a) AMFI (b) SEBI (c) CIBIL (d) CRISIL 10. Which of the following statements is incorrect regarding RTGS system? (a) The transactions take place in real time (b) The system operates on DNS (Deferred Net Settlement) basis (c) The minimum amount that can be remitted is Rs. 2 lakh (d) Service charges for RTGS transactions vary from one bank to another 11. Banks have recently launched a service through which money can be transferred using mobile phones. This service is known as? (a) MMTF (Mobile Money Transfer Facility) (b) MTMT (Mobile To Mobile Transfer) (c) IMPS (Inter Bank Mobile Payment Service) (d) IBMPS (Internet Banking Mobile Payment Service) 12. Which among the following is at times mentioned as a kind of Direct Debit Facility? (a) ECS (b) RTGS (c) IMPS (d) UTR 13. The discounting rate at which RBI borrows government securities from commercial banks is known as? (a) Repo Rate (b) Reverse Repo (c) Deposit Rate (d) Base Rate 14. Which among the following is an instrument of monetary policy used by the RBI?

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(a) Base Rate (b) PLR (c) CRR (d) BPLR 15. Which among the following statements is incorrect in the context of IMPS? (a) It’s a mobile-to-mobile fund transfer facility (b) For this facility we need a GPS-enabled mobile phone (c) Both the sender and the receiver must have an account in the same bank (d) Both the customers must have an MMID (Mobile Money Identifier Number) number 16. ________is the organization that maintains the borrower’s history in India? (a) CRISIL (b) CIBIL (c) CARE (d) RBI 17. RBI has directed commercial banks to resolve ATM transaction-related complaints within seven working days. If a commercial bank is unable to do so then it has to pay Rs.________per day as compensation? (a) 50 (b) 100 (c) 200 (d) 225 18. RTGS as well as NEFT uses? (a) UTR Number (b) MICR (c) IFSC (d) DNS 19. Which of the following statement is incorrect about SEBI? (a) SEBI is a capital market regulator (b) SEBI is the mutual fund regulator (c) SEBI also regulates the credit rating agencies in India (d) None of them is wrong 20. What does liquidity mean? (a) It means how cash is converted into gold (b) It means how cheaply and quickly an asset is converted into cash (c) It means how cash is converted into SDR (Special Drawing Rights) (d) It means how uncertain the money market conditions are 21. SWIFT is a commonly used acronym in the banking industry. The ‘I’ in SWIFT stands for? (a) Interbank (b) International (c) Intercom (d) Indian 22. What does the term Open Market Operations refer to? (a) Selling of equities in the open market (b) Selling of commodities in the open market (c) Buying and selling of government securities in the open market (d) Buying and selling of products in the wholesale market 23. Under which act does RBI issue directives to banks? (a) PMLA Act, 2002 (b) RBI Act, 1934 (c) DICGC Act, 1961 (d) Banking Regulation Act, 1949 24. Which committee recommended the change in the base year of the Wholesale Price Index? (a) Narsimhan committee (b) Vijay Kelkar committee (c) Srikrishna committee (d) Abhijit Sen committee 25. ____________is the base year of the New Consumer Price Index Series? (a) 2009 (b) 2008 (c) 2006 (d) 2010 26. __________________isn’t a method of measurement of National

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Income? (a) Value-added method (b) Income method (c) Investment method (d) Expenditure method 27. Fastest mode of transfer of money is:? (a) INB (b) IMPS (c) NEFT (d) RTGS 28. In India, the commercial banks are required to provide (ANBC (Adjusted Net Bank Credit) to priority sector) & to maintain CASA A.c (under RBI guide line) is _ ----%? (a) 15 (b) 25 (c) 35 (d) 40 29. 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 30. ___________________has was 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 (Palakkad) (c) Himachal Pradesh (d) Uttarakhand 31. Since April 1, 2012__________has become the validity of cheques and bank drafts.? (a) 2 months (b) 3 months (c) 4 months (d) 6 months 32. On what basis is Ad Valorem Tax (is a tax based on the ?---------- of real

estate or personal property )levied?

(a) Volume (b) Value (c) Imports (d) Exports 33. RBI is coming up with the concept of____________to protect banks against possible harmful effects arising from the operations of their non-banking financial subsidiaries? (a) Financial Holding Company (b) Bank Holding Company (c) Bureau of Credit Union (d) Financial Institutions Audit Cell 34. 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 35. _____________are the beneficiaries of the “Reverse Mortgage Scheme”? (a) Government employees (b) Senior citizens (c) Unemployed persons (d) Persons of BPL category 36. RBI was nationalized in the year? (a) 1949 (b) 1952 (c) 1955 (d) 1964 37. Which of the following is/are associated with the fiscal policy? 1. Marginal Standing Facility 2. Devaluation of Currency 3. Market Stabilization Scheme? (a) 1 & 2 (b) Only 3 (c) 2 & 3 (d) Only 2

http://en.wikipedia.org/wiki/Tax

http://en.wikipedia.org/wiki/Real_estate

http://en.wikipedia.org/wiki/Real_estate

http://en.wikipedia.org/wiki/Personal_property

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38. Parliament of India enacted for regulation and development of securities market in India.

(a) 1988 (b) 1990 (c) 1992 (D) 1995

39. National income of India is estimated by? (a) NCAER (b) Ministry of Statistics (c) Central Statistical Office (d) Ministry of Finance 40. What is understood by Fiduciary Issue of currency? (a) The issue of currency notes without keeping gold or silver as deposit (b) The issue of currency notes keeping gold or silver as deposit (c) The issue of currency notes with partial gold or silver deposits (d) The issue of currency notes with comparative gold or silver deposits 41. _____________is the percentage of total deposits of a bank which it has to keep with itself in the form of liquid assets? (a) Statutory Liquidity Ratio (SLR) (b) Cash Reserve Ratio (CRR) (c) Statutory Reserve Ratio (d) Cash Ratio 42. The exchange rate in India is dependent upon: 1. Government policy 2. Demand-supply forces 3. Monetary policy objectives? (a) Only 2 (b) 2 & 3 (c) 1 & 2 (d) 1, 2 & 3 43. Collateralized Borrowing and Lending Obligation (CBLO) is a/an ? (a) Money Market Instrument (b) Instrument of Monetary Policy (c) Type of Risk Cover (d) Stock Market Instrument 44. Often, we read in newspapers that the RBI has changed the Repo rate and the Reverse Repo rate by a few basis points. What is a basis point? (a) Ten % of one hundredth point (b) One hundredth of 1% (c) One tenth of 1% (d) Ten % of 100 45. Banks generally don’t pay interest on money deposited in which of the following accounts? (a) Savings account (b) Current account (c) Fixed deposit account (d) None of these 46. ‘Fiat Money’ is defined as the money which is ? (a) Accepted internationally (b) Accepted temporarily in lieu of gold (c) Issued by keeping gold or silver as deposit (d) declared as money by the government 47. Which of the following Rates Decided by Bank Individually?

(a) Bank Rate (b) Base Rate (c) PLR (d) Interest on TDR E. more than one 48. For obtaining which among the following does a customer not require a bank account? (a) A loan (b) A cheque (c) A banker’s draft (d) A credit card 49. RBI isn’t expected to perform the role of? (a) Acting as a clearing house (b) Working as a banker to the government (c) Managing forex

http://en.wikipedia.org/wiki/Parliament_of_India

http://en.wikipedia.org/wiki/Security_(finance)

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(d) Accepting deposits from general public 50. Prior to RBI which of the following Bank was known as Regulator of Money Market?

(a) Bank of Bengal (B) Imperial Bank (C) Audh Commercial Bank D) None 51. A bank draft can be defined as a/an? (a) Letter from commercial bank (b) Cheque drawn on the bank itself (c) Direction to a banker to collect a customer’s debt (d) Instruction to dishonour a stop payment 52. When RBI sells government securities, its result is that? (a) The liquidity in the banking system increases (b) The liquidity in the banking system remains unchanged (c) The liquidity in the banking system gets diminished (d) None of the above 53. It has been made mandatory for NBFCs to get themselves registered with …… before July 8, 1997? (a) RBI (b) SEBI (c) Ministry of Finance (d) CBDT 54. Which of the following is not an instrument in the hands of the RBI to check inflation in our country? (a) Open Market Operations (OMO) (b) Special Drawing Rights (SDR) (c) Bank Rate (BR) (d) Cash Reserve Ratio (CRR) 55. In India, which among the following is/are a part of Legal Tender Money? (a) Both coins and currency notes (b) Both coins and bank drafts (c) Both currency notes and SDRs (d) Only currency notes issued by RBI 56. __________has become the first state in India to launch RBI’s e- payment system for commercial tax payers? (a) Goa (b) Kerala (c) Karnataka (d) Maharashtra 57. In which among the following types occurs the Interest Rate Risk? (a) Credit risk (b) Market risk (c) Operational risk (d) All the above 58. DICGC Was established in which year?

(a) 1961 (b) 1971 (c) 1981 (d) 1991

59. Which of the following organization was established with ” purpose of

providing insurance of deposits and guaranteeing of credit facilities”?

(a) Public sec Bank (b) Nabard Bank (c) IRDA (d) DICGC

60. ____________is an agreement under which an issuing bank at the

request of the importer undertakes to make payment to the exporter against

certain specified documents?

(a) Bill of exchange (b) Letter of exchange (c) Letter of credit (d) Bill of entry

61. ____________is the duty applied by a government to control the exports

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of an article of trade, so that the article of trade can be used by the local

markets rather than in foreign countries?

(a) Customs duty (b) Excise duty (c) Anti-dumping duty (d) Dumping

duty

62. DICGC insures all bank deposits, such as saving, fixed, current, recurring

deposits for up to the limit of Rs?

(a) 50000 (b) 1,00,000 (c) 10,00,000 (d) 10,000

63. Which among the following is not incorrect?

(a) Money market provides long term source of finance

(b) Recession in the industrial sector in India is normally due to a fall in exports

(c) Ways and means advances given by RBI are nowhere related to the state’s revenue

(d) Exchange rate is fixed by RBI

64. We have read in the newspapers that the Government of India has signed

a DTAA to broaden the scope of article of exchange of information to include

exchange of banking information. What does DTAA stand for?

(a) Double taxation article agreement (b) Double taxation avoidance agreement

(c) Double taxation avoidance arrangements (d) Dual tax agreement arrangement

65. Which of the statements mentioned below is/are correct?

1. T-bills are issued by the Government of India on behalf of the RBI

2. T-bills are short-term money market instruments

3. T-bills cannot be purchased by a resident of India

(a) All are correct (b) 2 & 3 are correct

(c) Only 2 is correct (d) Only 3 is correct

66. Which of the following is an incorrect statement?

(a) Reverse Repurchase operation by RBI is aimed at increasing the liquidity in the

banking system

(b) Special Drawing Rights (SDR) are issued by IMF

(c) Rupee appreciation results in decrease in imports

(d) Increase in the inflation rate leads to decline in real interest rate

67. What purpose does the MICR number, which is present on a cheque,

serve?

(a) It is used to identify the genuineness of the cheque

(b) It is used to identify the bank branch

(c) It is nothing but a type of cheque number

(d) Both (a) and (b)

68. In TRIPS, what does ‘I’ stand for?

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(a) Intellectual (b) Information (c) Indian (d) Infra

69. Insurance companies use the bank sales channels to sell their products.

Which of the following terms describes this selling process?

(a) Scheduled banking (b) Scheduled Insurance (c) Bankinsuring (d)

Bancassurance

70. Which of the following acts is useful in controlling HAWALA transactions?

(a) FEMA Act (b) RBI Act (c) DICGC Act (d) Banking Regulation Act

71. What does the term SME stand for?

(a) Small and Micro Enterprises (b) Small and Medium Enterprises (c) State and

Medium Economy (d) Small and Medium Economy

72. ‘CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’

stand for?

(a) Currency (b) Compensation (c) Capital Adequacy (d) Capitalisation

73. A Eurobond is ?

(a) A bond released in a currency of the European countries

(b) A bond released in an Indian currency in European nations

(c) A bond released in Euro in our country

(d) A bond released in a currency other than the currency of the country in which it is

issued

74. In banking parlance, ‘NPA’ stands for?

(a) Non Performing Asset (b) Net Producing Asset (c) Net Performing Asset (d)

Not Promoting Asset

75. LAF is an indirect instrument of monetary policy, which is used by \RBI to

regulate the liquidity in banking system. ‘LAF’ stands for?

(a) Liquidity Adjustment Facility (b) Liquidity Account Facility (c) Liquidity

Allotment Facility (d) Long Adjustment Facility

76. On the basis of which commission was RBI established?

(a) Hilton Young Commission (b) British Commission (c) Federal Commission (d)

Federation Commission

77. Life insurance and general insurance companies like LIC, ICICI

Prudential, ICICI Lombard, National Insurance etc. are regulated by which

organisation?

(a) RBI (b) PFRDA (c) IRDA (d) IBA

78. Bank rate is defined as the?

(a) Rate of interest charged by commercial banks from borrowers

(b) Rate of interest at which RBI lends money to banks against government securities

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(c) Rate of interest allowed by commercial banks on their deposits

(d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks

79. An IDR (Indian Depository Receipt) is ?

(a) An instrument of monetary policy used by RBI (b) A deposit account with a

depository in India

(c) An instrument in the form of depository receipt created by an Indian depository

against underlying equity shares of the issuing company (d) An instrument in the form

of deposit receipt issued by an Indian depository

80. 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

81. _____________are NOT a part of the Scheduled Banking structure in

India?

(a) Money lenders (b) Public sector banks (c) Private sector banks (d)

Regional rural banks

82. ‘MAT’ is an acronym which stands for?

(a) Maximum Alternate Tax (b) Minimum Alternate Tax (c) Minimum Affordable Tax

(d) Maximum Affordable Tax

83. Often, we read in the newspapers that several Indian companies are

taking the FCCB route to raise capital. What does the term FCCB stand for?

(a) Foreign Currency Convertible Bond (b) Foreign Convertible Credit Bond (c)

Financial Consortium and Credit Bureau (d) Future Credit and Currency Bureau

84. Which of the following interest rates signifies RBI’s long term stance of

monetary policy?

(a) Repo Rate (b) CRR (c) Bank Rate (d) Reserve Repo Rate

85. DICGC do not cover which org?

(a) Nationalised Banks (b) Private Banks (c) Co-Operative Banks (d) Primary

Credit Society

86. ________________was the main objective of the Fiscal Responsibility

and Budget Management Act, 2003?

(a) Achieving fiscal surplus (b) Eliminating revenue deficit (c) Eliminating

fiscal deficit (d) Stopping money laundering

87. Minimum Age which required for Saving A/c in Banks by RBI is?

(a) 10 Years (b) 18 Years (c) 21 Years (d) 25 Years

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88. Amortizing In Banking is used for?

(a) a loan where the principal of the loan is paid down over the life of the loan. (b) A

loan paid By co Borrower after death of actual Borrower (c) Interest of loan paid by

borrower (d) none

89. In capital markets, the term arbitrage is used in reference to the ?

(a) purchase of securities to cover the sale (b) sale of securities to reduce the loss on

purchase

(c) concomitant sale and purchase of securities to make profits from price (d)

variation in different markets

90. If RBI wants to limit the capital outflows and control currency

depreciation, which of the following would be the most viable action?

(a) Increase interest rates (b) Decrease interest rates (c) Purchase

government bonds (d) Decrease statutory liquidity ratio

91. The buying of shares and bonds of Indian firms by foreign institutional

investors is known as?

(a) FDI (b) Portfolio investment (c) NRI investment (d) Foreign

indirect investment

92. The Financial Sector Assessment Program (FSAP) is a comprehensive and

in-depth analysis of a country’s financial sector. Which among the following

bodies conducts this programme?

(a) International Monetary Fund (b) G-20 (c) World Economic Forum

(d) World Bank

93. The ability of commercial banks to increase their deposits by expanding

their loans and advances is known as?

(a) Capital expansion (b) Credit expansion (c) Credit control (d) Credit

creation

94. Which among the below mentioned is/are dealt by the Indian Capital

Market?

1. Short-term funds 2. Medium-term funds 3. Long-term funds

(a) 1 & 2 (b) 2 & 3 (c) 1 & 3 (d) 1, 2 & 3

95. Net Interest Income is defined as the?

(a) Interest earned on advances (b) Interest earned on investments (c)

Total interest earned on advances on advances and investment (d) Difference

between interest earned and interest paid

96. ‘KYC’ (Know Your Customer) norms were implemented in the Indian

banking system in 2002 as per the directive of ?

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(a) SEBI (b) RBI (c) IBA (d) IRDA

97. ___________ has got RBI’s nod to issue prepaid card to its clients?

(a) LIC (b) SIDBI (c) NABARD (d) GIC

98. If there is an inflationary trend in the economy, what would be the trend

in the pricing of banking services?

(a) Increasing trend (b) Decreasing trend (c) Constant trend (d) There is no

relevance of inflation in pricing of the banking products

99. Which bank known as “lender of the last resort”?

(a) RBI (B) NABARD (C) NHB (d) SIDBI

100. Inflation happens when there are

(a) fewer goods and more buyers (b) more goods and fewer buyers (c) fewer

goods and fewer buyers (d) more goods and more buyers

101. The largest revenue in India is obtained from ?

(A) Railways(B) Excise Duty(C) Sales Tax(D) Corporation Tax

102. The tax levied by Central Government and collected by State Governmentis ?

(A) Stamp Duty (B) Excise Duty (C) Income Tax (D) Gift Tax

103. The tax levied by Local Governments i.e. Municipal Corporations is ?

(A) Income Tax (B) Wealth Tax (C) House Tax (D) Gift Tax

104. The tax collected by the State Governments and given to local bodies is ?

(A) Income Tax (B) Wealth Tax (C) House Tax (D) Professional Ta

105.. The period for Call Money is?

(A) 10 to 15days (B) 1 to 14 Days (C) 15 to 30 Days (D) One Month (E) None

106. Who regulates the money circulation in India?

(A) State Bank of India (B) Reserve Bank of India (C) NABARD (D) Commercial

Banks

107. Which of the following is not an organized sector in India?

(A) Nationalised Banks (B) Regional Rural Banks (C) Cooperative Banks (D) Chits

and Money lenders

108. Who will settle the grievances of customers of banks?

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(A) Reserve Bank of India (B) State Bank of India (C) Local Courts (D) Ombuds

Men

109. Who introduced the Banking Ombudsmen Scheme?

(A) RBI (B) SBI (C) Ministry of Finance (D NABARD

110. When was OMBUDS MEN SCHEME first introduced?

(A) November 2006 B) October 1981 (C) June 1995 (D) January 1999

111. Which was the firth Bank corporated by the Indians?

(A) Imperial Bank of India (B) State Bank of India (C) Avadh Commercial Bank (D)

Reserve Bank of India

112. When was the Avadh Commercial Bank established?

(A) 1881 (B) 1894 (C) 1898 (D) 1899

113. When was Indian Banking Act come into force?

(A) 1948 (B) 1949 (C) 1950 (D) 1951

114. When was Imperial Bank was Changed as State Bank of India?

(A) January 1st 1935 (B) Feb 26 1947 (C) July 1st 1955 (D) July 1st 1959

115. How many banks were first nationalised?

(A) 10 (B) 12 (C) 14 (D) 16

116. When was the second phase of nationalisation done?

(A) 9th July 1969 B) 10th July 1968 (C) 16th August 1985 (D) 15th April, 1980

117. How many banks were in second phase of nationalisation?

(A) 4 (B) 5 (C) 6 (D) 7

118. Who will act as the banker to the Government of India?

(A) State Bank of India (B) Reserve Bank of India (C) NABARD (D) Nationalised

Banks

119. Where is the Head Quarter of Reserve Bank of India?

(A) Mumbai (B) Delhi (C) Kolkotta (D) Ahmedabad

120. Who was first governor of Reserve Bank of India?

(A) K. A. Narasimham (B) V. K. Malhotra (C) A. K. Vadia (D) A. B. A Smith

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121. When was Lead Bank Scheme introduced?

(A) 1967 (B) 1968 (C) 1969 (D) 1977

122.what is CRR?

a) Cash Reserve Ratio b) Current Ratio Rate c) Review Report

d) Credit Rating Record

123.. The first development financial institution in India that has got merged

with a bank is?

a) IDBI b) ICICI c) IDFC d) UTI e) None of these

124. Which of the following NBFC converted itself into a commercial bank?

a) Tata Finance b) Reliance Capital Trust c) Birla Mutual

d) Kotak Mahindrae) None of these

125. The rate of which discounting the bills of first class banks is done byRBI

is called?

a) Bank Rate b) Prime Lending Rate c) Loan Rate d) Discounting Rate

126. Banking ombudsman has been constituted under which act?

a) Banking Regulation Act b) RBI Act c) SBI Act d) COPRA

127. Which was first finance company has been given banking licence by

RBI?

a) Kotak Mahindra b) Ashok Leyland & Finance c) TVS Finance d) Tata Finance

128. Indian Banks Association (IBA) has a common net working system for

sharing the ATM facilities in Mumbai, which is known as?

a) ATM Network b) Shared Payment Network System c) Cash Network

d) None of these

129. Arbitrage is?

a) Buying and selling in two markets simultaneously b) A rate of interest c) A Fee

d) Arbitrage is a dispute e) None of these

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130. Consortium Advances refer?

toa) Concurrent borrowingsb) Multiple financingc) Joint Financing by more than one ban

kd) Financing of consignment businesse) None of these

131. NABARD refinance for financing Self Help Groups is to the extent of?

a) 25% b) 50% c) 75% d) 100%

132. The term Allonge refers to?

a) The stamps affixed on document

b) A sheet of paper attached to mortgage deed for the purpose of witnessc) A sheet of

papers attached to a negotiable instrument for the purposeof making endorsement

thereof when there is no space in the instrument d) None

133. The provision of Consumer Protection Act, 1986 are applicable to the

services rendered by the Banks?

a) To the customers of the bank onlyb) To the customers and the users of services

irrespective of against consideration or free services

c) To the customers and any user of Bank’s services against

considerationd) None of these

134. As per section 16 of the Banking Regulation Act, 1949 a person can be

appointed as a director of how many banking companies?

a) Three b) Two c) One d) Four e) None of these

135. Banking ombudsman means?

a) Person appointed to recover dues from defaulting borrowersb) A person to

whom customer can approach for redress of his

grievancesc) A person appointed to settle dispute between employees andmanagement

d) A person appointed by RBI to oversee the functioning of Foreign

Bankse) None of these

136. NGO is the term associated with?

a) SHGb) PMRYc) SEEUYd) Agri. Advancese) None of these

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137. Full form of Full form of SLR?

a) Statutory Liquidity Ratiob) State Level Recoveryc) Sundry Leverage Ratiod) State Liq

uidity Reserve

138. C.R.A. in banking parlance stands for?

a) Credit Rating Association b) Credit Rating Agency c) Credit Risk Assessment

d) None of these

139. E.P.S. in share market stands?

a) Earning per shareb) Electronic Payment Systemc) Employee Pension Scrolld) Equated

Payment Systeme) None of these

140. The Securitization and Reconstruction of Financial Asset and enforceof

Security Interest Act came into force from?

a) 21.08.02 b) 21.06.02 c) 21.07.02 d) 21.12.02 e) None of these

141. The powers of the Board of Directors to borrow from the bank are

mentioned ?a) Article of Association b) Memorandum of Association

c) Special Resolution d) A & B

142. . Who is authorized to permit premature closer of PPF A/c?

a)RBI b) Ministry of finance Department of Economic affairs

c) Chairman of concerning Bank d) None

143. According to RBI guideline how much Percetage of CASA should have

with commercial banks?

a) 40% b) 50% c) 60% d) 70%

144. To be categorized as a schedule Bank the minimum capital & reservere

quired a) Rs. 10 lacs b) Rs. 5 lacs c) Rs. 20 lacs d) Rs. 7 lacs

e) None of these

145. The objective of Government to appoint Narsimhan Committee

a) To strengthen the banking system b) To improve customer service

c) To strengthen the credit portfol d) None of these

146. The full form of RBS is?

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a)Risk Based Supervision b)Rating by System c)Role Based Supervision

d)Rating Bank Security

147. Who can fix the interest rates of NRE & FCNB deposits ?

a) RBI b) Banks, as per the directive of RBI c) Govt. of India d) IBA

148. The following is not a housing finance intermediary agency?

a) HDFC b) HUDCO c) NHB d) SICOM

149. Who is authorised to issue coin in India?

a) RBI b) Ministry of Finance c) SBI d) None of these

150. Bank can change interest rate without reference to its Base Rate in the

following?

a)Housing loans b) NRE/ FCNB deposits c) Personal loans

d)Educational loans

151. To which category of customers are banks prohibited to sanctionloans against shares and debentures?

a) Institutionsb) PSUs c) Banksd) Trust and endowments

152. What should be the method of valuation for advances againstshares/debentures?

bonds?a) Face valueb) Market pricec) Book Valued) Average Value

153. What action is taken if one of the customers tenders forged note?

a) He is sent to prisonb) Note is returned with remark, forged notec) Note is impoundedd) Note is torn

154. A contract of insurance is a contract of?

a) Indemnity b) Pledge c) Guarantee d) Hypothecation

155. Where is the headquarters of SWIFT?

a) Hong Kong b) Brussels c) London d) Mumbai

156. Which of these is not a credit rating agency?

a) Moody\’s b) Standard & Poor’s c) Price water house d) ICRAe) None of these

157. Who is the Governor of RBI?

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a) Bimal Jalan b) Y V Reddy c) K J Udeshi d) Ranga Reddy e) None of these

158. The VSAT communication network for banks and financial institutions launched by RBI is known as?

a) SWIFTb) SBI NETc) BANK NETd) INFINET

159. What is a Repo Rate?

(A) It is a rate at which RBI sell government securities to banks (B) It is a rate at which banks borrow rupees from RBI (C) It is a rate at which RBI allows small loans in the market (D) It is a rate which is offered by Banks to their most valued customers or prime customers

160. In economics it is generally believed that the main objective of a Public Sector Financial Company like Bank is to?

(A) Employ more and more people (B) Maximize total profits (C) Maximize total production (D) Provide financial service to the people of the nation of its origin across the country 161. Which of the following cannot be called as a Debt Instrument as referred in financial transactions? (A) Certificate of Deposits (B) Bonds (C) Stocks (D) Commercial Papers (E) Loans 162. The government formed the panel after many ex-servicemen returned their medals to protest the rejection of their ‘one rank one pension’ demand. Who is heading this panel? (A) K.M. Chandrasekhar (B) R Balakrishanan (C) B S Padmanabham (D) T. Raja Shekhar 163. Whenever RBI does some Open Market Operation Transaction, actually it wishes to regulate which of the following? (A) Inflation only (B) liquidity in economy (C) Borrowing powers of the banks (D) Flow of Foreign Direct Investments (E) None of these 164. The maximum amount of the total Revenue earned by the government of India comes from: (A) Income Tax (B) Customs Duty (C) Excise Duty (D) Value Added Tax E) Corporate Tax 165. Which was the first Indian Bank to introduce credit card? (A) State Bank of India (B) Central Bank of India (C) Union Bank of India (D) ICICI 166. Capital Market Regulator is— (A) RBI (B) IRDA (C) NSE (D) BSE (E) SEBI 167. FDI refers to? (A) Fixed Deposit Interest (B) Fixed Deposit Investment (C) Foreign Direct Investment (D) Future Derivative Investment (E) None of these 168. What is Call Money?

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(A) Money borrowed or lent for a day or over night (B) Money borrowed for more than one day but upto 3 days (C) Money borrowed for more than one day but upto 7 days (D) Money borrowed for more than one day but upto 14 days 169. Which is the first Indian company to be listed in NASDAQ ? (A) Reliance (B) TCS (C) HCL (D) Infosys (E) None of these 170. Which among the following decides the oil Prices in India? (A) Government of India (B) Government of Respective states (C) Ministry of Petroleum (D) Oil Companies (E) None of these 171. SEBI has been imposed a restriction on money flow in equity through ‘P-notes’. What is the full form of ‘P-notes’? (A) Promissory notes (B) purchase notes (C) participatory notes (D) private notes 172. Which of the following is known as plastic money? (A) bearer cheques (B) credit cards (C) demand drafts (D) gift cheques 173. Who is known as the ‘Father of Economics’? (A) Adam Smith (B) Marshall (C) J.M. Keynes (D) Pareto (E) None of these 174. Which sister organization of the World Bank provides long term loans at zero interest to the poorest developing countries? (A) Asian Development Bank (B) IMF (C) International Developmental Association (D) International Finance Corporation 175. When there is an inflationary trend in the economy what would be trend in the pricing of the Bank products ? (A) Increasing trend (B) Decreasing trend (C) Constant trend (D) There is no relevance of the inflation in pricing of the Banking Products 176. Banks in our country normally publicize that additional interest rate is allowed on retail domestic term deposits of? a) Minors b) Married Women c) Senior citizens d) Government Employees e) Rural residents 177. When the rate of inflation increases? a) Purchasing power of money increases b) Purchasing power of money decreases c) Value of money increases d) Purchasing power of money remains unaffected 178. A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as? a) Investment Banking b) Core Banking c) Mobile Banking d) National Banking e) Specialized Banking 179. Which of the following is NOT considered a money market instrument? a) Treasury Bills b) Repurchase Agreement c) Commercial Paper d) Certificate of Deposit e) Shares and Bonds 180. Which of the following is necessary while opening deposit accounts in banks? a) Will b) Registration c) Identity d) Indemnity e) Guarantee

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181. Which of the following is not a banking term? a) Letter of credit b) MIBOR c) Factoring services d) Entry load e) None of these 182. Which of the following organizations issue the rules of global trade? a) IMF b) World Trade Organization c) Foreign trade d) G-20 183. One single statement that depicts the financial position of a Bank and / or Business enterprise at a given point of time is called? a) Statement of product details b) Foreign exchange c) Balance Sheet d) Balance of payment 184. The Reverse Mortgage scheme is launched to give benefit to which of the following groups of society? a) Persons below 60 yrs b) Senior Citizens c) Unemployed youth d) Orphan e) All 185. One of the major challenges banking industry is facing these days is curbing deliberate effortsof some people to bring money earned through illegal activities in circulation. Which of the following act is passed to prevent this activity? a) Payment & settlements Act b) Control money supply Act c) Narcotics and Psychotropic substance Act d) Prevention of Money laundering Act 186. Which of the following scheme is not meant for investment purposes? a) National saving certificate b) Infrastructure bonds c) Mutual funds d) Letter of credit e) None of these 187. Basel norms which are important regulatory stipulations are meant for which sector? a) Insurance b) Banking c) Micro finance d) Pension funds e) None 188. Systematic investment Plans relates to? a) Mutual Funds b) Life Insurance Companies c) Commercial Banks d) Post office savings schemes 189. Euro money is the official currency of? a) NATO b) UN c) European d) Germany and England 190. Which of the following is an example of cash less purchase? a) Debit card b) Credit card c) ATM withdrawal d) All of the above 191. Whose signature appears on Indian Rs. 100 note? a) Finance Minister b) RBI Governor c) Finance Secretary d) Chairman, Planning Commission 192. While discussing investments there is a mention of short term government security. What is this investment? a) Debenture b) Mutual funds c) Treasury bill d) Share e) None of these 193. NBFCs are an important part of the Indian financial system. what is meant by this term? a) New Banking Financial Companies b) Non Banking Financial Companies c) Neo Banking Financial Confederation d) Non banking Fiscal corporation 194. Banking loan against property requires the asset to be free from encumbrances. What does it mean?

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a) The asset to be free from any liability b) The asset to be properly registered c) The property to be fully constructed d) The asset should not have multiple owners 195. RBI stipulates a healthy mix of CASA in the business figures of banks. What is CASA? a) Customer Analysis and Savings Pattern b) Cost Appreciation and selling Analysis c) Current Account and saving Account d) Credit and savings Aggregate 196. Which one of the following is not an electronic banking delivery channel? a) Mobile Vans d) Mobile Phone Banking c) Internet Banking d) Tele Banking e) ATM 197. The Rate at which the domestic currency can be converted into foreign currency and viceversa is known as the? a) Exchange rate b) MIBOR c) Inter bank Call money rate d) Base rate e) LIBOR 198. Now-a-days Banks are selling third party products. Example of third party product is? a) Mutual funds b) Term deposits c) Credit cards d) All of these 199. Electronic Clearing Service in banks can be availed only by? a) Individuals b) Corporates c) Senior Citizens d) All of these e) None 200. The usual deposit accounts of banks are?

a) Current accounts, electricity accounts and insurance premium accounts.

b) Current accounts, post office savings, bank accounts and term deposit accounts.

c) Loan accounts, savings bank accounts and term deposit accounts.

d) Current accounts, savings bank accounts and term deposit accounts.

e) Current bill accounts and term deposit accounts.

201. Fixed deposits and recurring deposits are? a) Repayable after an agreed period b) Repayable on demand c) Not repayable d) Repayable after death of depositors e) Repayable on demand or after an agreed period as per bank’s choice 202. Accounts are allowed to be operated by cheques in respect of? a) Both savings bank accounts and fixed deposit accounts. b) Savings bank accounts and current accounts. c) Both savings bank accounts and loan accounts. d) Both savings bank accounts and cash accounts only. e) Both current accounts and fixed deposit accounts. 203. Which of the following is correct statement? a)No interest is paid on current deposit accounts. b)Interest is paid on current accounts at the same rate as term deposit accounts. c) The rate of interest on current accounts and savings accounts are the same. d) No interest is paid on any deposit by the bank. e) Savings deposits are the same as current deposits. 204. Banking services delivered to a customer by means of a computer control system that does not directly involve banks branch is called? a) Universal banking b) Virtual banking c) Narrow banking d) Brick & Mortal banking e) None

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205. Financial inclusion means provision of ? a) Financial services namely payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the bank b) Ration at affordable cost to persons not yet given the same c) House at affordable cost to persons not yet given the same d) Food at affordable cost to persons not yet given the same e) Education at affordable cost to persons not yet given the same 206. When a bank returns a cheque unpaid, it is called? a) Payment of the cheque b) Drawing of the cheque c) Canceling of the cheque d) Dishonour of the cheque e) Taking of the cheque 207. Who is the Chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions (MFI) Sector? a) YH Malegam b) Dr. KC Chakraborty c) C. Rangrajan d) M. Damodaran e) Usha Thorat 208. Which of the following types of accounts are known as ‘Demat Accounts’? a) Accounts which are Zero Balance b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there c) Accounts in which shares of various companies are traded in electronic form d) Accounts which are operated through internet banking facility e) None of the above 209. NEFT means? a) National Electronic Funds Transfer b) Negotiated Efficient Fund Transfer system c) National Efficient Fund Transfer solution d) Non Effective Fund Transfer system e) Negotiated Electronic Foreign Transfer system. 210. In respect of partnership business, LLP stands for? a) Local Labour Promotion b) Low Labour Projects c) Limited Loan Partnership d) Longer Liability Partnership e) Limited Liability Partnership 211. What is a stale cheque? a) A cheque issued without drawer’s signature. b) A cheque with only signature of the drawer. c) A cheque which has completed 3 months from the date of its issue. d) Any one of the above. e) None 212. Largest shareholder (in percentage shareholding) of a Nationalized bank is ? a) RBI b) NABARD c) LIC d) Govt of India e) IBA 213. Banking Ombudsman is appointed by? A. Reserve Bank of India B. Government of India C. Concerned State Govt, where RBI office is located D. Finance Minister E. None of the above 214. Before approaching Ombudsman what should the complainant do?

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A. Take up the matter with State Government B. Take up the matter with concerned Bank Branch within 30 days of cause of action C. Approach Lok Adalat D. Can directly approach Banking Ombudsman 215. What is the maximum period within which the aggrieved customer can approach OMBUSAMAN? A. Within 2 year B. Within 1 year C. Within one month D. No such limitation period E. None of the above 216. What is the maximum amount for which the Award Can be given by OMBUDSMAN? A. Rs 1,00,000 B. Rs 2,00,000 C. Rs 5,00,000 D. Rs 10,00,000 E. No limit 217. Who will be appointed as Banking Ombudsman? A. CGM or GM of RBI B. Deputy Governor of RBI C. Governor RBI I is an ex-officio Ombudsman D. Finance Secretary E. None of the above 218. KYC norms are liberalized in case of following accounts? A. Current Account B. Savings Account C. Term Deposit Account D. No Frills Account. 219. The KYC does not include obtaining the following ? A. Identity Proof B. Address Proof C. Customer Profile D. Vehicle details of the customer 220. AML Stands for? A. Anti Monitory Limit B. Anti Money Laundering C. Always money laundering D. Anytime Money Laundering E. None of the above 221. KYC –Know Your Customer is to identify the Customer, whereas AML- Anti Money Laundering is to identify the Source of Income? A. False B. True C. True only in case of small amounts D. Not necessary in all cases E. Any of the above 222. If a Depositor is not a Senior Citizen and his Taxable Income is within the exempted limits then he has to submit ———————— to the Bank for not deducting tax at source? A. Form 15G B. Form 15 H C. Form 61 D. Form 60 E. None of the above 223. In case the prospective customer whose income comes from only Agriculture sources then he has to give a declaration in Form 61? A. True B. False C. He has to submit form 60 D. No such requirement E. None of the above 224. Nomination is available for? A. Deposit accounts B. Safe custody articles C. Lockers. D. Partnership firms E. Only A B C 225. Nomination can be given only for? A. Individuals B. Joint Individuals C. Limited Companies D. Only A, and B

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226. Money deposited at a bank that cannot be withdrawn for at fixed period of time is known as a? A. Demand Deposit B. Checking Account C. Saving Bank deposit D. Time Deposit 227. With reference to a cheque which of the following is the ‘drawee bank’? A. The bank that collects cheque. B. The payee’s bank. C. The endorsee’s bank. D. The bank of the Drawer of the Cheque 228. Base Rate is the rate below which no Bank can allow their lending to anyone. Who will fix this ‘Base Rate’ for Banks? A. Individuals Banks Board B. Ministry of Commerce C Ministry of Finance D. RBI 229. Expand NPA? A. No Provision Account B. Non Performing Asset (An asset which ceases to generate income) C. No Profit Account D. Non-Personal Accounts E. None of the above 230. Finance Ministry advised RBI to allow common ATMs to be owned and managed by Non Banking Institutions. Such ATMs are called? A. NBFC ATMs B. Off Site ATMs C. Third Party ATMs D. White Label ATMs 231. An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated? A. Indian Penal Code B. Negotiable Instrument Act C. Criminal Procedure Code D. Payment and Settlement Act E. Indian Contract Act 232. What is CTS? A. Cash Transaction system (in banks) B. Cheque Transfer System C. Cheque Truncation System D. Cash Transfer System E. None of the above 233. The headquarters of European Union is situated in which of the following countries? A. UK B. Germany C. France D. Belgium E. Netherlands 234. Bharat Ratna was instituted in? A. 1954 B. 1955 C. 1961 D. 1969 E. 1960 235. The USP of a Current account is? A. High minimum balance B. No restrictions on transactions C. No interest payable D. Restricted deposits E. None of these 236. Leads for Home Loans can be obtained from? A. Traders B. Trusts C. Builders D. Cooperative societies E. None of these 237. The target group for SME loans is? A. Students B. Housewives C. Entrepreneurs D. Salaried persons E. Government undertakings

238. Which of the following terms is used in the field of finance and banking?

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A. Metabolism B. Genetic process C. Centrifugal force D. Debt instrument E. Experimental error 239. The National Social Security Fund (NSSF) helps which of the following groups of society? A. Bank employees B. Central government employees C. Workers in the unorganized sector D. Workers in the textile industry E. Women employees 240. Which of the following tools is used by the RBI to control credit and monetary situations of the markets? A. RTGS B. NEFT C. ECS D. CRR E. Balance of trade 241. Which of the following countries is located in South America? A. South Sudan B. South Korea C. Uganda D. Angola E. Uruguay 242. Which of the following is the currency of Myanmar? A. Taka B. Dinar C. Kyat D. Yen E. Dollar 243. Which of the following terms is not used in the field of Economics? A. Net income B. Cost of project C. Flow of fund D. Balance sheet E. Cold chain 244. What happens when an economy is in recession? A. GDP growth slows down B. Unemployment rate rises C. Bankruptcies rise D. Both A & B E. All A, B & C 245. Retail investors means which of the following types of stock market investors? A. Mutual funds B. Corporate bodies C. Promoters of companies D. Individuals E. FIIs 246. Functions of Reserve Bank are? A. Bankers bank B. Banker to Government C. Lender of last resort D. Controlling financial requirements of banks through Repo/Reverse Repo E. All the above 247. Reverse Repo Rate has the following characteristic? A. Borrowing by RBI from banks B. Borrowing with government security as collateral C. Short Term Borrowing D. All the above 248. Indian commercial banks are categorized into? A. Public Sector banks B. Foreign Banks C. Private Sector Banks D. All the above 249. Regional Rural Banks have been set up with the basic objective of: A. Providing credit to semi-urban and urban population B. providing deposits facilities to farmers C. Providing credit and deposit facilities to rural areas D. Providing credit, deposit and other banking facilities to people in rural areas E. None of the above

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250. The following is a mechanism for injecting liquidity by RBI to the financial system? A. Reverse Repo B. Hike in CRR C. Hike in interest rate D. Decreased in Repo Rate

E. None of the above

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