1. 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
2. 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
e) Amount of money in circulation decreases
3. 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
4. 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
5. Which of the following is necessary while opening deposit accounts in banks?
a) Will
b) Registration
c) Nomination
d) Indemnity
e) Guarantee
6. 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
7. Which of the following organizations issue the rules of global trade?
a) IMF
b) World Trade Organization
c) Foreign trade
d) G-20
e) None
8. 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
e) Trading and Manufacturing account
9. 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) Orphans
e) All the above
10. One of the major challenges banking industry is facing these days is curbing deliberate efforts of 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
e) None
11. 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
12. Basel norms which are important regulatory stipulations are meant for which sector?
a) Insurance
b) Banking
c) Micro finance
d) Pension funds
e) None
13. Systematic investment Plans relates to:
a) Mutual Funds
b) Life Insurance Companies
c) Commercial Banks
d) Post office savings schemes
e) None
14. Euro money is the official currency of ___?
a) NATO
b). United Nations
c) European Union
d) Germany and England
e) None of these
15. 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
e) None
16. Whose signature appears on Indian Rs. 100 note?
a) Finance Minister
b) RBI Governor
c) Finance Secretary
d) Chairman, Planning Commission
e) None
17. 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
18. 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 Companies
19. Banking loan against property requires the asset to be free from encumbrances. What does it mean?
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
e) None
20. 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
e) None of these
21. Which one of the following is not an electronic banking delivery channel?
a) Mobile Vans
b) Mobile Phone Banking
c) Internet Banking
d) Tele Banking
e) ATM
22. The Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as the ____
a) Exchange rate
b) MIBOR
c) Inter bank Call money rate
d) Base rate
e) LIBOR
23. 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
e) None
24. Electronic Clearing Service in banks can be availed only by:
a) Individuals
b) Corporates
c) Senior Citizens
d) All of these
e) None
25.What is the full form of CRR as used in banking sector?
a) Crucial Reserve Rate
b) Cash Reserve Ratio
c) Current Reserve Ratio
d) Core Current Ratio
e) None.
26.What is the full form of LAF as used in the banking world very frequently ?
a) Liquid Advances Finance
b) Liquidity Adjustment Facility
c) Legal Adjournment Formality
d) Local Advance Finance
e) Late Arrival of Finance
27.Where is the headquarters of International Monetary Fund?
a) Geneva
b) Paris
c) London
d) Manila
e) Washington DC
28. Many Regional Rural Banks are given licence to open branches in small cities and towns. These licences are given by:
a) Cabinet Committee on Economic Affairs
b) Reserve Bank Of India
c) NABARD
d) Indian Banks' Association
e) None of these
29. Which of the following organisations/agencies is not associated with the world of Banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) SPCA
30. Banks recover term loan from the parties in EMIs. What does the letter 'E' represent in the term?
a) Easy
b) Effective
c) Equated
d) Essential
e) Economical
31. What is the Bank Rate at Present?
a) 2%
b) 4%
c) 8.25%
d) 8%
e) None of these
32. Which of the following is not a scheduled commercial bank?
a) IDBI
b) AXIS
c) HDFC
d) NABARD
e) Kotak Mahindra Bank
33. Which of the following certainly is an effort in the direction of Financial Inclusion?
a) Internet Banking
b) Anywhere Banking
c) No-frills Account
d) Foreign Currency Accounts
e) All of these
34. Who amongst the following Padma Bhushan awardees is a famous Banker?
a) Azim H Premji
b) Kapila Vatsyayan
c) Chanda Kochhar
d) Waheeda Rahman
e) Brajesh Mishra
35. Which of the following Acts has specially been launched to facilitate banks in recovery of bad loans?
a) RBI Act
b) Banking Regulation Act
c) Companies Act
d) Income Tax Act
e) SARFAESI Act
36. The financial assistance or loans of Rs. 10,000 by a bank to a very small borrower will be called?
a) Business Finance
b) Govt. Finance
c) Micro Finance
d) Small Finance
e) KYC finance
37. Who amongst the following cannot work as a Business Correspondent as given in the scheme launched by the banks ?
a) Kirana Store
b) Post Office
c) Self Help Group
d) A Bank Officer
e) Co-operative Society
38. Some banks are financing big projects like construction of roads, bridges etc. Finacing such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing Core Sector Industry
d) Financial Inclusion
e) All of these
39. As we know, a lot of new concepts are being used in the field of banking these days, which of the following is NOT one such concept/product directly associated with banks ?
a) RTGS
b) SMS alert
c) Demat Account
d) ATM/Debit card
e) Number Portability
40. Which of the following is NOT a Nationalised bank?
a) Union Bank of India
b) Central Bank of India
c) YES Bank
d) Syndicate Bank
e) Indian Bank
41. Interest payable on savings bank accounts is?
a) De-regulated by RBI
b) Regulated by State Governments
c) Regulated by Central Govt
d) Regulated by RBI
e) Regulated by Finance Minister
42. 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.
43. 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
44. 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.
45. 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.
46. 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
47. 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
48. 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
49. 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
50. 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
51. 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.
52. Distribution of insurance products and insurance policies by banks as corporate agents is known as?
a) General insurance
b) Non life insurance
c) Bancassurance
d) Insurance Banking
e) Deposit Insurance
53. 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
54. 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
55. Interest on savings bank account is now calculated by banks on?
a) Minimum balance during the month
b) Minimum balance from 7th to last day of the month
c) Minimum balance from 10th to last day of the month
d) Maximum balance during the month
e) Daily product basis
56. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?
a) RBI
b) NABARD
c) LIC
d) Govt of India
e) IBA
57. An account that can be opened by business organisations and also individuals is known as a?
a) Term deposit
b) Checking Account
c) Saving Bank deposit
d) No Frills Accounts
e) Current deposit
58. A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as?
a) CHAPS
b) SWIFT
c) NEFT
d) SFMS
e) CHIPS
59. Buy now & pay later refers to?
a) Foreign Currency
b) Internet Banking
c) US Dollars
d) Traveler's cheques
e) Credit Cards
60. Which one of the following is not 'Money Market Instrument'?
a) Treasury Bills
b) Commercial Paper
c) Fixed Deposit
d) Equity Shares
e) None
61. Which one of the following is a retail banking product?
a) Home Loans
b) Working capital finance
c) Corporate Term Loans
d) All the above
e) None
62. Finance Ministry has asked the RBI to allow common ATMs that will be owned and managed by non-banking entities hoping to cut transaction costs for banks. Such ATMs are known as?
a) Black label ATMs
b) Offsite ATMs
c) On site ATM's or red ATMs
d) Third party ATMs
e) White label ATMs
63. Technological advancement in the recent times has given a new dimension to banks, mainly to which one of the following aspects?
a) New Age Financial Derivatives
b) Service Delivery Mechanism
c) Any Banking
d) Any type banking
e) Multilevel Marketing
64. Which of the following is NOT a function of the Reserve Bank of India?
a) Fiscal Policy Functions
b) Exchange Control Functions
c) Issuance, Exchange and Destruction of currency notes
d) Monetary Authority Functions
e) Supervisory and Control Functions
65. Which of the following is NOT required for opening a bank account?
a) Identity Proof
b) Address Proof
c) Recent Photographs
d) Domicile Certificate
e) None
66. What is the maximum deposit amount insured by DICGC?
a) Rs. 2,00,000 per depositor per bank
b) Rs. 2,00,000 per depositor across all banks
c) Rs. 1,00,000 per depositor per bank
d) Rs. 1,00,000 per depositor across all bank
e) None
67. The present Foreign Trade Policy of India will continue till?
a) Dec 2012
b) Mar 2013
c) Mar 2014
d) Jun 2013
e) Dec 2014
68. With reference to a cheque who is drawee?
a) The bank that collects cheque.
b) The payee's bank.
c) The endorsee's bank.
d) The endorser's bank.
e) The bank upon which the cheque is drawn.
69. In which of the following fund transfer mechanisms, funds can be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
a) RTGS
b) NEFT
c) TT
d) EFT
e) MT
70. Banking Ombudsman Scheme is applicable to the business of ?
a) All Scheduled commercial banks excluding RRBs.
b) All Scheduled commercial banks including RRBs.
c) Only Public Sector Banks
d) All Banking Companies
e) All scheduled banks except private banks.
71. Nationalization of banks aimed at all of the following except?
a) Provision of adequate credit for agriculture, SME & exports.
b) Removal of control by a few capitalists.
c) Provision of credit to big industries only.
d) Access of banking to masses.
e) Encouragement of a new class of entrepreneurs.
72. Which one of the following banks is headed by a Woman CEO?
a) Bank of Baroda
b) HDFC Bank
c) Central Bank of India
d) PNB
e) ICICI
73. Base Rate is the rate below which no Bank can lend their funds. Who sets up this 'Base Rate' for Banks?
a) Individuals Banks Board
b) Ministry of Commerce
c) Ministry of Finance
d) RBI
e) Interest Rate Commission of India
74. What is a 'Debit Card'?
a) It is a card issued by a Rating Agency.
b) It is a card which can be used for withdrawing cash or making payment even in the absence of any balance in the account.
c) It is a card which can be used for withdrawing cash or making payment at Point of Sales (POS) if there is balance in the account.
d) It is a card issued to borrowers
e) It is a card which can be used for making STD calls.
75. Bad advances of a Bank are called?
a) Standard accounts
b) Book debts
c) Non Performing Assets
d) Out of order accounts
e) Overdrawn accounts
76. Axis Bank is a?
a) Public Sector Bank
b) Private Sector Bank
c) Co-operative Bank
d) Foreign Bank
e) Gramin Bank
77. By increasing repo rate, the economy may observe the following effects ______
a) Rate of interest on loans and advances will be costlier.
b) Industrial output would be affected to an extent.
c) Banks will increase rate of interest on deposits.
d) Industry houses may borrow money from foreign countries.
e) All of these.
78. Increased interest rates, as is existing in the economy at present will_______
a) Lead to reduction in borrowings
b) Lead to lower GDP growth.
c) Mean higher cost of raw materials.
d) Mean lower cost of raw materials.
e) Mean higher wage bill.
79. Which of the following schemes is launched to provide pension to the members of unorganized sectors in India?
a) Swabhiman
b) Jeevan Dhara
c) Jeevan Kalyan
d) ASHA
e) Swalamban
80. A cheque returned for insufficiency of funds. Payee will have right to issue notice and approach court of law for justice under section 138 of which act?
a) Indian Penal Code
b) Negotiable Instrument Act
c) Criminal Procedure Code
d) Payment and Settlement Act
e) Indian Contract Act
81. Mr. Rajendra had filed a complaint with Banking Ombudsman and is not satisfied with the decision. What is the next option available for him to get his problem redressed?
a) Write to the CMD of the Bank.
b) File an appeal before the Finance Minister.
c) File an appeal before the Banking Ombudsman again.
d) File an appeal before the Dy. Governor RBI.
e) Simply close the matter as going to court involves time and money.
82. Which of the following is an example of Financial assets?
a) National Saving Certificate
b) Infrastructure Bonds
c) Indira Vikas Patra
d) Krishi Vikas Patra
e) All of these
83. Bank branches which can undertake foreign exchange business directly are known as:
a) Authorized dealers
b) Foreign dealers
c) Overseas branches
d) Approved dealers
e) Exchange branches
84. Insurance cover for bank deposits in our country is provided by ____
a) SBI
b) Govt of India
c) GIC
d) LIC
e) DICGC
85. The Financial Literacy does not include which of the following?
a) How to invest the funds
b) How to use the limited funds carefully
c) How to minimize the risks
d) How to reinvest the money earned
e) None of these
86. 'ADB' refers to-
a) Amedical Development Bank
b) Amedical Depository Bureau
c) Additional Debit Balance
d) Only a&b
e) Asian Development bank
87. When a banker talks about CDR, what is he talking about?
a) Corporate Debt Restructuring
b) Corporate Debt Rollover
c) Company Debt Rollover
d) Corporate Deposit Restructuring
e) Company Deposit Restructuring
88. Expand the term ALM as used in Banking/Finance sector?
a) Asset Liability Management
b) Asset Liability Maturity
c) Asset Liability Mismatch
d) Asset Liability Manpower
e) Asset Liability Maintenance
89. Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related to which of the following industries/ markets?
a) Capital Market
b) Banking industry
c) Commodities market
d) Money Market
e) Mutual funds
90. What is the maximum period for which domestic term deposits are normally accepted by the banks in our country?
a) 3 yr
b) 5 yr
c) 7 yr
d) 10 yr
e) 12 yr
91. If you wish to purchase some US Dollars for your travel abroad, you should approach?
a) The Ministry of Finance
b) The US Embassy
c) Any Bank Branch authorized to do such activity
d) The Reserve Bank of India
e) External Affairs Ministry
92. What does the letter 'L' stands for in the term LAF commonly used in financial/economic news?
a) Liquidity
b) Least
c) Liabilities
d) Long
e) Liquid
93. Which of the following is not classified as a Commercial Bank?
a) Public Sector Bank
b) Foreign Bank
c) Private Sector Bank
d) Regional Rural Bank
e) Urban Cooperative Bank
94. Which of the following is not the name of the a Banking Organization?
a) HDFC
b) IDBI
c) YES
d) SEBI
e) ICICI
95. Money laundering means
a) Concealment of income source mainly to avoid income tax
b) Money acquired from undisclosed sources and deposited in foreign banks
c) Money acquired from undisclosed sources and deposited in foreign banks
d) Process of conversion of money obtained illegally to appear to have originated from legitimate sources to convert black money into white money
e) Money acquired from drug trafficking
96. Monetary Policy as an arm of the economic policy is administered by
a) Government of India
b) RBI
c) SBI
d) Govt of the respective states
e) None
97. Which of the following is not a primary function of a Bank?
a) Granting loans
b) Collecting cheques/ drafts of Customers
c) Arranging VISA for students for abroad education
d) Issuing bank drafts
e) Selling Gold/Silver Coins.
98. Reserves that can act as a liquidity buffer for Commercial Banks during crisis times are
a) CAR
b) CRR
c) CAR & CRR
d) CRR & SLR
e) SLR
99. National Bank for Agriculture and Rural Development (NABARD) is established in
July, 1982 as per recommendations of Committee headed by
a)Narasimhan
b) Saraf
c) Rangarajan
d) Sivaraman
e) Bimal Jalan
100. What is the name of the trade Association of IT & BPO companies in India?
a) NASSCOM
b) FICCI
c) CII
d) AIMA
e) ASSOCHAM
Answers
1) c; 2) b; 3) b; 4) e; 5) c; 6) d; 7) b; 8) c; 9) b; 10) d;
11) d; 12) b; 13) a; 14) c; 15) d; 16) b; 17) c; 18) b; 19) a; 20) c;
21) a; 22) a; 23) a; 24) d 25) b; 26) b; 27) e; 28) b; 29) e; 30) c;
31) c; 32) d; 33) c; 34) c; 35) e; 36) c; 37) d; 38) a; 39) e; 40) c.
41) a; 42) d; 43) a; 44) b; 45) a; 46) b; 47) a; 48) d; 49) a; 50) c;
51) a; 52) c; 53) e; 54) c; 55) e; 56) d 57) a; 58) b; 59) e; 60) c;
61) a; 62) e; 63) b; 64) a; 65) d; 66) c; 67) c; 68) e; 69) a; 70) b;
71) c; 72) e. 73) a 74) c; 75) a; 76) b; 77) a; 78) c; 79) e; 80) b;
81) d; 82) a; 83) a; 84) e; 85) e; 86) e; 87) a; 88) a; 89) b; 90) d;
91) c; 92) a. 93) e; 94) d; 95) d; 96) b; 97) c; 98) d: 99) d: 100) a
