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Banking GK (Very Important) Magazine +PDFs > Important Points (Remember) > Flashcards

Important Points (Remember) Flashcards

1
Q 
The major shareholders in Asset Reconstruction Company of India Limited (ARCIL) other than SBI are : 
A. IDBI &Canara Bank
B. ICICI & HDFC
C. IDBI & HDFC
D. IDBI & ICICI
A

D. IDBI & ICICI

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2
Q 
The minimum and maximum court fee that is required to be paid for filing a suit in a Debt Recovery Tribunal is:
A. Rs. 5,000; Rs. 1,00,000
B. Rs. 10,000; Rs. 1,00,000
C. Rs. 12,000; Rs. 1,50,000
D. None of the above
A

C

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3
Q

The practice of reducing NPAs through cross-lending to square off loans from bank is known as :

A

A. “Ever-Greening” of advances

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4
Q

The risks involved in paying a post-dated cheque are :
A. the drawer may issue other cheques which bear a date prior to the date of such a cheque and if the balance is insufficient, the bank may be held liable
B. an Attachment Order may be received attaching the balance in the account
C. the drawer may stop payment
D. All of the above

A

D. All of the above

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5
Q 
The single largest component of external debt is : 
A. Commercial borrowings
B. Multilateral debt 
C. Short term debt
D. NRI deposits
A

A. Commercial Borrowings

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6
Q 
The term “Holder” under an Option Contract refers to : 
A. Buyer of the Option 
B. Seller of the Option 
C. Middleman/broker 
D. Dealer
A

A

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7
Q 
The type of charge created on LIC Policy is : 
A. pledge
B. hypothecation 
C. assignment 
D. all of these
A

C

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8
Q

To revitalize RRBs, the Central Government has taken some significant steps. One of these is not such a step :
A. made SARFAESI Act applicable to RRBs
B. permitted RRBs to accept NRI deposits
C. permitted RRBs for Branch Expansion
D. RRBs can undertake Insurance Business

A

D. RRBs can undertake Insurance Business

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9
Q 
Under CDR Mechanism, Category-I CDR System is applicable to accounts classified as under in the books of at least 90 per cent of the creditors (by value):
A. Standard 
B. Standard and Sub-Standard 
C. Sub-Standard or Doubtful 
D. Standard or Sub-Standard or Doubtful
A

B. Standard and Sub-Standard

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10
Q

Under Section [S.2(h)] of the RTI Act, 2005 “Other Public Authority” means:
A. by notification issued or by order of the appropriate government
B. all bodies owned, controlled or subsequently financed by the government
C. all non governmental organizations substantially financed by the government
D. all of the above

A

D. all of the above

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11
Q 
Commercial Papers are secured by: 
A. floating charge on stocks 
B. unsecured loans
C. fixed assets
D. book-debts
A

B. unsecured loans

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12
Q 
Concept of "Service Area Approach" was recommended by: 
A. R.V. Gupta
B. A.D. Gorawala
C. Dr. P.D. Ojha Committee
D. Dr. Kalia
A

A). R.V. Gupta

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13
Q 
Certificate in respect of an SSI unit is given by: 
A. RBI
B. Chamber of Commerce
C. District Industries Centre
D. None of these
A

C. District Industries Centre

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14
Q

Credit Exposure does not include:
A. Bridge Loans
B. Working Capital Demand Loan
C. Shares of the company underwritten by the bank
D. Advances against the Bank’s fixed deposits granted to a company

A

D. Advances against the Bank’s fixed deposits granted to a company

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15
Q

Currency Note containing political slogan is not a legal tender as per:
A. Legal Tender (Inscribed Notes) Act, 1964
B. Negotiable Instruments Act, 1881
C. Reserve Bank of India Act
D. None of the above

A

A

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16
Q 
Demand draft for 20,000 and above: 
A. can be paid in cash
B. should not be paid in cash
C. mode of payment will depend on the status of the customer
D. None of the above
A

B. should not be paid in cash

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17
Q 
Deposits under NRE/FCNB accounts are linked to: 
A. Base Rate
B. SIBOR
C. LIBOR
D. None of these
A

C

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18
Q 
Electronic Fund Transfer scheme of RBI has been renamed as: 
A. Clearing
B. Core Banking Solutions
C. Real Time Gross Settlement
D. National Electronic Fund Transfer
A

D

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19
Q 
Escrow account is useful/helpful to: 
A. importers
B. exporters
C. both A and B
D. None of these
A

B

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20
Q

The issue of new securities to existing shareholders at ratio to those already held is known as

a) Preference shares
b) rights shares
c) bonus shares
d) cumulative preference shares
e) none of the above

A

b) rights shares

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21
Q

_________________refers to that market wherein short term monetary assets are bought and sold and according to Reserve Bank of India, it is the centre of dealings mainly of short term character in monetary assets

A

Money market

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22
Q

_____________is a mechanism that allows people to buy and trade financial securities such as stocks. Bonds, commodities and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis.

a) Commodity markets
b) financial markets
c) capital market
d) all the above
e) None

A

E

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23
Q

____________is the standard rate at which Reserve Bank of India is prepared to buy or rediscount bills of exchange or other eligible commercial paper from the banks

a) Base rate
b) CRR
c) bank rate
d) Reverse repo
e) repo rate

A

E

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24
Q

When it comes to the following term namely- PLR – what do you mean by ”L”?

a) Liberalisation
b) Liquidity
c) Lending
d) License
e) Loan

A

C

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25
Q

Cheque books are issued in respect of which among the deposits as mentioned below?

a) Fixed deposit
b) savings bank
c) current account
d) recurring deposit
e) (b) and (c) as above

A

E

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26
Q

Crossing has been defined in the following act:

a) Banking regulation act 1949
b) Reserve Bank of India, 1934
c) Indian companies act 1956
d) Negotiable Instruments act 1881
e) none of the above

A

D

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27
Q

When it comes to the facility of nomination available in bank products, which is the odd man out among the following?

a) Fixed deposit
b) savings bank
c) reinvestment deposit
d) safe deposit locker
e) housing loan

A

E

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28
Q

When it comes to the regulatory functions of Reserve Bank of India, which among the following is not true?

a) Qualitative credit control
b) open market operations
c) maintenance of CRR and SLR
d) credit authorization scheme
e) promotion of export through refinance facilities

A

E

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29
Q

When the requirements of any borrower is very huge, normally banks join together and lend the borrower on sharing basis and this form of finance is called as:

a) Joint financing
b) coordinated financing
c) consortium advance
d) collective finance
e) cumulative finance

A

C

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30
Q

According to the norms prescribed by RBI for setting up of white label ATMs, what is the minimum net worth the NBFCs should have?

(1) Rs. 50 crore
(2) Rs. 75 crore
(3) Rs. 100 crore
(4) Rs. 200 crore
(5) Rs. 150 crore

A

3

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31
Q

Treasury Bills means

(1) Salary bills by Government officials on the treasury
(2) Bills drawee by the Government contractors and other suppliers on the treasury for the dues owed to them by the Government
(3) Obligation of the Government of India issued by the Reserve Bank of India and payable normally 91 days after issue
(4) A mode of drawings by the Treasury Office on the Reserve Bank of India
(5) None of the above

A

3

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32
Q

Which of the following cannot issue a Commercial Paper?

(1) Companies
(2) Primary Dealers
(3) Commercial Banks
(4) All India Financial Institution
(5) None of these

A

3

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33
Q

Maximum period for which a commercial paper can be issued is

(1) 3 months
(2) 6 months
(3) 1 year
(4) 2 year
(5) None of these

A

3

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34
Q

Which of the following is not a money market instrument?

(1) Treasury Bills
(2) Commercial Paper
(3) Certificate of Deposit
(4) Equity Share
(5) None of these

A

4

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35
Q

Government securities with terms of more than 1 year are called

(1) Government bonds
(2) Treasury bills
(3) Bills of exchange
(4) Capital bills
(5) All of the above

A

1

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36
Q

Money that a government has required to be accepted in settlement of debts is

(1) Barter money
(2) Commodity money
(3) Legal tender
(4) Currency value
(5) None of these

A

3

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37
Q

Inflation can defined as

(1) A persistent rise in general price level
(2) A persistent fall in general price level
(3) An increase purchasing power
(4) Increase in value of money
(5) Decrease in money

A

1

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38
Q

Reason for cost push inflation is

(1) Increase in wage rate
(2) Increase in interest rate
(3) Increase in the price of raw material
(4) Increase in indirect tax
(5) Decrease in cost of production

A

(3)Increase in the price of raw material

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39
Q

Which of the following is not a reason for demand pull inflation?

(1) Shortage of consumer goods
(2) More exports
(3) Economic growth
(4) Less import
(5) More exports and less imports

A

1

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40
Q

Under which of the following methods of depreciation, amount of depreciation varies every year
A.Written Down Value Method
B.Straight Line Method
C.Amount of depreciation does not very on year to year basis

A

A.Written Down Value Method

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41
Q

What do you mean by “Outcome Budget”:
A.It denotes reaction of the media after Budget Papers are approved in the Parliament
B.It aims to measure performance of the Government in various departments
C.It is a report submitted by the Government of India indicating made in different projects by ministries and departments as a first step towards converting outlays into income

A

C

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42
Q 
What is “Stagflation” : 
A.inflation with growth 
B.deflation with growth 
C.Inflation with stagnant growth
D.inflation with depression
A

C.Inflation with stagnant growth

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43
Q

What is true about “white Card” :
A. It is related to companies producing milk products
B. It does not carry on its face, the brand of the issuer
C. It is meant to covert blank money into the economy
D. None of these

A

B

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44
Q 
When a country decide to conduct trade on favorable terms with another country for mutual benefits, this is called : 
A. FTA System 
B. MFN Status 
C. Bilateral Trade 
D. Counter Trade
A

B. MFN Status

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45
Q 
When a security is not treated in the Stock Exchange for a period of ………….. days prior to the date of valuation, it is treated as “Non-Traded” security : 
A. 30 days  
B. 45 days  
C. 60 days 
D. 90 days
A

C

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46
Q 
When banks invest their deposit accruals in Government securities, it is called : 
A. Asset Securitization 
B. Hedging 
C. Narrow Banking  
D. Forfaiting
A

C

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47
Q

What is Yield Curve Risk:
A.It is a line of graph plotting the yield of all maturities of a particular instrument
B.Yield curve changes its slope and shape from time to time
C.Yield curve can be twisted to the desired direction through the intervention of RBI
D.All of the above

A

D

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48
Q 
Currency Swaps are: 
A.common currency transactions involving borrowing and lending 
B.currency loans from a foreign country 
C.back-to-back loan 
D.None of the above
A

D

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49
Q 
Reserve Bank of India has not authorized banks to approve limits relating to: 
A.Cash Reserve Ratio 
B.Statutory Liquidity Ratio 
C.Foreign Exchange Operations 
D.None of the above
A

D

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50
Q

Settlement risk can be avoided only if:
A.Settlements are made on real time basis
B.there is a global settlement agency
C.foreign exchange transactions are traded in Derivatives
D.All of the above

A

A

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51
Q 
Reverse Repo means:
A.rate RBI charges on funds lent to banks
B.rate offered to Blue chip companies 
C.a rate equal to Bank rate
D.None of the above
A

A

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52
Q 
S.L. Kapoor Committee relates to:
A.financing of Small Scale Industries 
B.Agriculture financing  
C.both A and B 
D.None of the above
A

A

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53
Q 
SEBI controls : 
A.Capital Market
B.Money Market
C.Both A and B
D.None of these
A

A

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54
Q

Securitization is :
A.non-performing loans are acquired from banks and financial institutions at a discounted value and security receipts issued to them so that these loans are removed from their balance sheet enabling them to reduce the provision in respect of such loans improve profitability
B.converting the illiquid loans of banks and financial institutions by Securitization company into tradable securities, after they are acquired and sold to the investors
C.a process of acquisition of non-performing loans from banks by a Securitization company and covert them into tradable securities and sold to the investors

A

All of them

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55
Q

Shares of companies notified by SEBI can be traded only when these are in ………. form :
A.physical
B.dematerialized
C.either A or B

A

B

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56
Q 
TDR offered as security for an advance is transferred to the bank by way of : 
A.pledge 
B.charge 
C.assignment 
D.all of these
A

C

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57
Q 
The Bank which has entered into carbon credit trading advisory services is : 
A. ICICI Bank
B. UCO Bank
C. IDBI Bank
D. Yes Bank
A

C

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58
Q 
The Base Rate system has replaced BPLR with effect from : 
A. 01.05.2010
B. 01.06.2010
C. 01.07.2010
D. 01.08.2010
A

C

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59
Q 
The buyer or the importer who procures a Letter of Credit from his banker is called 
A. opener of the credit 
B. beneficiary of the credit 
C. negotiator of the credit 
D. None of the above
A

A

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60
Q

The coverage of Right to Information Act (RTI), 2005 is:
A. whole of India
B. whole of India, except North Eastern States
C. whole of India, except the State of Jammu & Kashmir
D. None of the above

A

C. whole of India, except the State of Jammu & Kashmir

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61
Q 
The difference between a Term Loan and a Deferred Payment Guarantee relates to :
A. end use of funds
B. outlay of funds 
C. both A and B
D. None of these
A

B

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62
Q

The expansion for BIFR, in the context of the Indian Industry is :
A. Board for Industrial and Financial Reconstruction
B. Bureau for Industrial and Financial Reconstruction
C. Board for Investment and Financial Reconstruction
D. Bureau for Investment and Financial Reconstruction

A

A

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63
Q 
The Financial Year of RBI starts from : 
A. 1st April
B. 1st June 
C. 1st July
D. 1st December
A

C

64
Q

The Government has approved framework for “Mobile-linked No-Frills Accounts” by banks. Which of the following is/are correct regarding the Government’s expectations in this regard.
A. nearly 500 million should be able to access financial services through mobile phones
B. each bank to start its implementation from 31st July and complete it by 31st December 2010
C. this will be a core micro payment platform for payment transfer of benefits of Government Schemes, and financial inclusion of target groups
D. All of the above

A

D. All of the above

65
Q 
The largest financial conglomerate of India is : 
A. HDFC Bank 
B. ICICI Bank 
C. IFCI
D. SBI
A

D

66
Q 
When we discuss Negotiated Dealing System, it denotes:
A.Settlement of Security dealing 
B.Trading in Stock Markets 
C.Trading in Government Securities 
D.None of the above
A

C

67
Q 
Which category of accounts are opened under Financial Inclusion:
A.Senior Citizens Deposit 
B.Super Sever Accounts 
C.No-Frill Accounts
D.SBI Vishesh
A

C.No-Frill Accounts

68
Q 
Which is the first bank in India to launch its interactive banking service through Dish TV:
A.SBI
B.ICICI Bank 
C.HDFC Bank 
D.Axis Bank
A

B- ICICI Bank

69
Q 
Which is the first bank in India to produce Green Power for captive use through wind mills: 
A.HDFC
B.ICICI
C.SBI 
D.Axis Bank
A

C

70
Q

While opening a current account, an introductory reference is absolutely necessary:
A.the introducer can be held responsible if the account becomes irregular
B.this is required under directions from the Reserve Bank of India
C.if it not taken, the bank may be held responsible for being negligent and may, therefore, lose statutory protection available under Section 131 of the Negotiable Instruments Act, 1881

A

C

71
Q 
Who was the first Indian Governor of the Reserve Bank of India: 
A.C.D. Deshmukh
B.Sachindra Ray 
C.S. Mukherjee 
D.I. G. Patel
A

A

72
Q

There is a joint account in the names of A and B, to be operated by both of them jointly. There is a debit balance of Rs. 23,100 when the bank receives a notice of A’s death:
A.the amount can be recovered from B only
B.the amount can be recovered from the estate of the deceased A only
C.the amount can be recovered from B and/or the estate of the deceased A

A

C

73
Q

Mohan, who will be 18 next December, approaches the bank for a loan of Rs. 1,00,000 to be repaid out of the property that will vest in him on his attaining majority: True or false ?
A minor’s agreement being void ab-initio the proposal in question will not be entertained

A

True

74
Q

The term “kite flying” in banking refers to :
A. drawing a cheque without providing sufficient funds to meet it
B. drawing and acceptance of a bill of exchange without consideration with a view to accommodate the other party

A

B

75
Q

Primary relationship between the banker and the customer is that of :
A. trustee and beneficiary
B. debtor and creditor

A

B

76
Q

A debt becomes time-barred after :
A. one year
B. two and a half year
C. three years

A

C

77
Q

Bank rate is :
A. a rate of interest charged by the commercial banks from the borrowers for advances against Government Securities
B. the lowest rate of interest charged by the commercial banks from the borrowers
C. the rate of which the Reserve Bank of India would rediscount bills of exchange or other eligible commercial papers, or advance against eligible securities to the scheduled banks

A

C

78
Q

What is Gilts:
A.Securities issued by government or Treasuries
B.They do not have any credit Risk
C.A and B both

A

C

79
Q

For which of the following purpose can banks grant Working Capital Term Loan:
A.Meeting margin for term loan
B.Meeting margin for working capital loan
C.Meeting contingent expenses

A

C

80
Q

Know Your Customers (KYC) guidelines are as per the provisions of:
A.Section 35 of Negotiable Instruments Act, 1881
B.Section 35A of Banking Regulation Act, 1949

A

B

81
Q

Maximum period for which a commercial paper can be issued is:
A.3 months
B.6 months
C.1 year

A

C

82
Q

One of the following is not correct in regard to Capital Market:
A.It is a market for long term financial assets
B.Maturity Period less than one year
C.Dealings take place at Stock Exchange
D.Unlimited number of players
E.Regulated by SEBI

A

B

83
Q

The approaches suggested by Basel Committee for purpose of computing Credit Risk under Basel-II are:
A.Advance Standard Approach, Internal Rating-Based Foundation Approach and Internal Risk-Based Advance Approach
B. Standard Approach, Internal Rating-Based Foundation Approach, and Internal Rating-Based Advance Approach
C.Basic Indicator Approach, Internal Rating-Based Foundation Approach, and Internal Risk-Based Advance Approach

A

B

84
Q

The duration of Ways & Means Advances (WMAs) is:
A.10 working days for Central Government 14 days for State Government
B.10 consecutive working days for Central Government and 14 days for State Government

A

B

85
Q

What are the characteristics of Treasury Bills:
A.These are borrowings by the Central/State Government
B.These are in the form of Promissory Notes
C.These are issued at a discount and for a fixed period of time
D.All of the above

A

D

86
Q 
Credit Guarantee Fund Trust for Small Industries has been set up on the recommendations of: 
A.Narasimham Committee
B.Ghosh Committee 
C.Chore Committee 
D.Kapoor Committee
A

D

87
Q 
What is full form of SLR in banking term:
A.Statutory liquidity rate
B.Statutory liquidity ratio
C.Statutory liquid rate
D.Stagnent liquidity ratio
A

B

88
Q

“Claused Bill of Lading” is one which indicates:
A. no defects in packaging or condition of goods
B. defective condition of package and goods
C. no documents attached to it

A

B

89
Q

“Cost Overrun” means:
A. Remaining constant in Project Cost
B. escalation in Project Cost
C. decrease in Project Cost

A

B

90
Q

“Dark Block” is an area:
A. where literacy rate is below 15 per cent
B. where people below the poverty line are more than 90 per cent
C. where underground source of water is not available
D. where more than 85 per cent exploitation has taken place on the available underground water

A

D

91
Q 
“Gearing” in accounting parlance refers to : 
A .Break Even Sales 
B.Current Ratio 
C.Debt/Equity 
D DSCR
A

C

92
Q

“Hedging” denotes:
A.protecting against fluctuations/uncertainly risk in forex markets
B.credit risk assessment in respect of advances
C.speculative buying/selling of foreign currency
D.None of these

A

A

93
Q 
“Working Capital” means: 
A.Own Capital of the Proprietor 
B.Borrowed Capital 
C.All Assets minus All Liabilities 
D.Current Assets minus Current Liabilities
A

D

94
Q

“Working Capital Gap” means:

Excess of current assets over current liabilities other than bank borrowings. True or false?

A

True

95
Q

Which was the first committee recommended for establishment of Special Recovery Tribunals for Books and Financial Institution:
Tiwari Committee

A

Yes

96
Q

Which of the following committees also recommended the set up of Debt Recovery Tribunals:
A.Committee on Financial Sector Reforms
B.Committee on Customer Service
C.Committee on RRBs

A

A

97
Q 
In which year the Recovery of Debts Due to Banks and Financial Institutions Act, was enacted: 
A.1991 
B.1993 
C.1994 
D.1995
A

C

98
Q

The material difference between debentures and bonds is:
A.Debentures are governed by relevant provisions of company law
B.Debentures are transferrable on registration
C.Bonds are negotiable instrument governed by law of Contract

A

A

99
Q

Where is the headquarters of “Society for worldwide Interbank Financial Telecommunication – SWIFT”?

a) New York
b) Los Angels
c) Brussels
d) Hague

A

B

100
Q

Basel II accord is mostly concerned with:

a) Central vigilance commission
b) non performing assets
c) capital adequacy ratio

A

C

101
Q

Cheque truncation means:

a) Tearing a cheque into two or more pieces
b) sending the photostat copy of a cheque in collection
c) using the electronic image of a cheque

A

C

102
Q

Sebi is a ?

A

Statutory Body

103
Q

What is ‘NIKKEI’:
A. Share Price Index of Tokyo share market
B. Name of Japanese Central Bank
C. Japanese name of the country’s Planning Commission
D. Foreign Exchange Market of Japan

A

A

104
Q 
NABARD was established on the recommendation of: 
A. Public Accounts Committee 
B. Shivaraman Committee 
C. Narasimham Committee 
D. Khandelwal Committee
A

B

105
Q

What do we mean by Green Shoe Option:
A. It is the shoe which is green in colour
B. It is type of carbon credit rights that the nation have to purchase to get the right to emit carbon
C. It gives the underwriter the right to sell investors more shares than originally planned

A

C

106
Q

“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

A

C

107
Q

Rural Infrastructure Development Fund (RIDF) is financed by:
A. Selected group of Public Sector Banks
B. Ministry of Rural Development
C. Reserve Bank of India
D. NABARD

A

D

108
Q

The term “Credit Management” covers:
A. pre-sanction, appraisal, sanction, documentation, disbursement and post lending supervision and control
B. management of all short term, medium and long term loans and on balance sheet transactions
C. management of the credit portfolio (advances) of banks and financial institutions
D. all of the above

A

D

109
Q

“Ways and Means” advances are provided by Reserve Bank of India only to:
A. Central Government
B. State Government
C. Both A and B

A

C

110
Q

Which of the following has become the first Regional Rural Bank issuing debit card in the country?
A.Punjab Gramin Bank
B.Nanital/Almora Bank
C.Kashi Gomti Sanyukta Gramin Bank

A

C

111
Q 
Which of the following Acts govern a Bank Guarantee? 
A.Negotiable Instruments Act, 1881 
B.Indian Contract Act, 1872 
C.Sale of Goods Act, 1930 
D.Indian Companies Act, 1956
A

B

112
Q 
Number of nationalised banks in India are: 
A.14 
B.20 
C.25 
D.28
A

B) 20

113
Q 
In which year six more commercial banks (in addition to the first lot of 14) were nationalised in India: 
A.1976 
B.1979 
C.1980 
D.1982
A

C

114
Q

Who was the Finance Minister when 14 Banks were nationalised.pn 19th July, 1969:
A.Mrs. Indira Gandhi
B.Morarji Desai

A

B

115
Q

Regional Rural Bank were established in the year:
A. 1968
B. 1970
C. 1975

A

C

116
Q 
Which of the following is the name of the organization set up to boost overall small finance in India: 
A. RBI
B. SIDBI
C. NABARD
D. SEBI
A

B

117
Q 
Who is to certify that any bill is a Money Bill?
A.Finance Minister 
B.Speaker of Lok Sabha
C.Prime Minister 
D.None of the above
A

B- Doubtful

118
Q

The RBI has asked the banks to step up legal action against willful defaulters whose default money is over?

A

1 crore

119
Q

The credit-deposit (CD) ratio of ……… is highest in the banking sector?

A

Foreign Banks

120
Q

Banks are not allowed to accept any fresh deposits or open any fresh account by way of renewal or otherwise under the two schemes — Non-Resident Non-Repatriable (NRNR) and Non-Resident. Special Rupee (NRSR) with effect from?

A

B.April 1, 2002

121
Q 
Committee on decontrolling the prices of petrol and diesel was headed by? 
A.Vijai Kelkar
B.C. Rangrajan
C.Abhijit Sen
D.Kirit S Parekh
A

D

122
Q 
What is the minimum number of directors in a public limited company? 
A.2
B.3
C.5
D.7
A

7

123
Q

Pure Banking, Nothing Else’ is a slogan raised by?
A.ICICI Bank
B.HDFC Bank
C.SBI

A

SBI

124
Q

The government has allowed issue of Long-Term Bonds for Insurance Companies and others upto?
A.10 years
B.15 years
C.25 years

A

C

125
Q

Negative lien is?

A

a declaration of the borrower to the effect that his assets are free from encumbrance and that he shall not encumber or dispose them of without bank’s permission

126
Q

Discount on issue of shares is a?
A. revenue loss
B. capital loss

A

B

127
Q

Which of the following Committee recommended a separate Act, for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act?
A.Rangarajan Committee
B.T.R. Andhyarajuna Committee

A

B

128
Q

The essential features of securitization are?
A.Acquisition of Financial Assets by a Securitisationor Reconstruction Company
B.The Assets may be NPA or standard
C.On sale the Assets go out of the Books of the Originator
D.All of the above

A

D

129
Q

The significance of index linked bonds is?
A.It provides protection against inflation rate rise
B.It is inbuilt in the process
C.Both A and B

A

C

130
Q

Commercial banks influence money supply through ____?

(a) Printing of one rupee notes
(b) Augmentation of savings and time deposits
(c) Provision of high denomination notes
(d) Creation of demand deposits

A

D

131
Q

An increase in bank rate, other things being equal, will result into ____?

(a) A decline in the cost of credit including greater and the demand for borrowing
(b) An increase in the cost of credit discouraging demand for credit

A

B

132
Q

Open market operations are mainly used as ______?

(a) A fiscal device which assists Government borrowing
(b) A monetary measure to regulate quantity of money in circulation and the cash reserves of the commercial banks
(c) A measure to counteract extreme trends in business
(d) A measure to influence the balance of payments position

A

B

133
Q

What is Debt Equity Ratio?

A

Ratio of long-term borrowing to tangible net worth

134
Q

Intangible assets are _____?

(a) Preliminary expenses
(b) Patents, copyright, goodwill
(c) Losses which cannot be reduced from share capital
(d) All the above

A

D

135
Q

Liability-side of the balance-sheet comprises ______?

(a) Capital and reserve
(b) Long-term liabilities
(c) Current liabilities
(d) All the above

A

D

136
Q

Export Credit Packing Advance sanctioned to SSI exporters are covered under the credit guarantee scheme of ______?

(a) DICGC
(b) ECGC
(c) DRI
(d) GIC

A

b)

137
Q

Treasury Bills are issued at _____?

(a) a discount
(b) a premium
(c) at face value
(d) both a and b

A

a)

138
Q

The word “BANK” is derived from _____?

(a) Italian word “banco”
(b) Word “bancus” or “banque” which means bench
(c) Work “back” from German meaning “joint stock fund
(d) All of these

A

d)

139
Q

The term “MSME” used in banking parlance means _____?

(a) Mini, Small and Medium Enterprises
(b) Micro, Small and Medium Enterprises
(c) Mini scale Marketing Enterprises
(d) Medium Scale Marketing Enterprises

A

b)

140
Q 
Which of the following is not credit substitute? 
A.Commercial Paper
B.Mortgage Loan
C.Corporate Bond   
D.Certificate of Deposit
A

B

141
Q

The difference between a Bond and Loan is?
A.The loan has normally fixed rate of interest. Bond price is dependent on market interest rate movements
B Bonds are more liquid
C.Yield to maturity value can be known easily in a bond
D.All of the above

A

D

142
Q

What is securitization?
A. A process which converts conventional credit into tradable Treasure Assets
B. Credit receivable of the Bank can be converted into Bonds i.e., pass through certificates
C. These certificates can be traded in the market
D. All of the above

A

D

143
Q

The advantages of securitization for a Bank is?
A.It provides liquidity to the issuing Bank
B.The Bank capital does not get blocked
C.Securitisation proceeds can be used for fresh lending
D.All of the above

A

D

144
Q

Which one of the following statements is incorrect?
A.Advances against gold ornaments are exempt from NPA norms
B.Classification of NPA should be done borrower wise and not facility wise
C.An NPA need not go through the various stages of classification
D.The existence of security should be ignored if the value is less than 10 per cent of the outstanding in the borrowal account

A

A

145
Q

Which one of the following statements is ‘false’?
A.The provision on standard assets can be included as Tier-II Capital
B.Statutory reserves kept by foreign banks in India are eligible for inclusion under Tier-I Capital
C.Nationalised banks can raise 51 per cent of their capital funds from the public
D.For foreign banks in India, foreign currency loans granted to India parties are not eligible for inclusion in capital funds

A

C

146
Q 
(SEZs) in India where some of the economic laws and restrictions of the land are relaxed with the purpose of giving incentives to investors are commonly known as? 
A.Preferential Zones 
B.Economic Corridors 
C.Industrial Parks  
D.Special Economic Zones
A

C

147
Q 
Advanced payment of tax is in the nature of: 
A. Asset
B. Liability
C. Prepaid Expenses
D. Revenue Expenses
A

C

148
Q 
In India, bank is regulated by: 
A. Indian Contract Act, 1872
B. Banking Regulation Act, 1949
C. Indian Companies Act, 1956 466.
D. None of these
A

B

149
Q 
Matching the following: 
List-I                                 List-II
1. Indian Contract Act         (a) 1872
2. Companies Act              (b) 1956 
3. Banking Regulation Act  (c) 1949
4. Revenue Expenses         (d) 1932
A

B. (a) (c) (b) (d)

150
Q

Expand IASB?
INFINET stands for?
The full form of RBS is?

A

International Accounting Standards Board
Indian Financial Network
Risk Based Supervision

151
Q

Cheap Money means?

A

Low Rate of Interest

152
Q

Consequent upon the recommendations of the Working Group on Rural Banks, 5 Rural Regional Banks were initially set up in the year?

A

1975

153
Q

Who is authorised to issue coins in India?

A

Ministry of Finance

154
Q

State Bank of India has………circles?

A

14

155
Q 
Personal Banking includes? 
A. Deposits 
B. Insurance 
C. Investment 
D. Above all
A

D

156
Q

Micro Finance is related to?
National Income of India is estimated by?
PannirSelvam Committee Report relates to?
Perpetual Non-Cumulative Preference Shares are part of?

A

Poor class
Central Statistical Organization
NPAs
Tier-I Capital

Banking GK (Very Important) Magazine +PDFs (2 decks)

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