302 Unit Test Series
What is the
meaning of “financing” in the financial market?
Advising an organization to raise charity
funds
Investing in the securities market
Sourcing funds
Converting the assets into cash
Yes, the
answer is correct.
Feedback:
Financing is
the process of providing funds for business activities, making purchases, or
investing
Accepted
Answers:
Sourcing
funds
Financial
instrument such as commercial paper can be sold
Issued by commercial banks
directly
with brokers or dealers
functional buyers
Yes, the
answer is correct.
Feedback:
Commercial
paper is an unsecured, short-term debt instrument issued by a corporation,
typically for the financing of accounts payable and inventories and meeting
short-term liabilities.
Accepted
Answers:
directly
Type of instrument
whoever holds it, gets interest and principal amount is classified as
term instrument
interim instrument
primary instrument
bearer instrument
Yes, the
answer is correct.
Feedback:
A bearer
instrument, or bearer bond, is a type of fixed-income security in which no
ownership information is recorded and the security is issued in physical form
to the purchaser.
Accepted
Answers:
bearer
instrument
Negotiable
deposit certificate are traded in
secondary markets
primary markets
direct markets
indirect markets
Yes, the
answer is correct.
Feedback:
NCDs are
guaranteed by a bank and can be traded in a highly-liquid secondary market.
Accepted
Answers:
secondary
markets
In primary
markets, property of shares which made it easy to sell newly issued security is
considered as
increased liquidity
decreased liquidity
money flow
large funds
Yes, the
answer is correct.
Feedback:
In primary
markets, property of shares which made it easy to sell newly issued security is
considered as increased liquidity.
Accepted
Answers:
increased
liquidity
Building
bought for commercial purpose is a financial asset.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Building,
Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of
financial assets.
Accepted
Answers:
TRUE
LIC is
primarily a money market intermediary.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
A financial
intermediary is an institution or individual that serves as a middleman among
diverse parties in order to facilitate financial transactions.
Accepted
Answers:
FALSE
The
unorganized financial system includes ___________.
Commercial Banks
Merchant Banks
Indigenous Banks
Private Banks
Yes, the
answer is correct.
Feedback:
he
unorganised sector of the money market is largely made up of indigenous
bankers, money lenders, traders, commission agents etc.
Accepted
Answers:
Indigenous
Banks
Long-term
debt instruments have a maturity of __________
One year
Over one year
One and half year
Two year
Yes, the
answer is correct.
Feedback:
Long-term
debt is debt that matures in more than one year.
Accepted
Answers:
Over one
year
The
liberalization of Indian Banking and Regulation was done based on
recommendation of________.
R Gandhi Committee
Narasimham Committee
Basel Committee
Khusro Committee
Yes, the
answer is correct.
Feedback:
The
Narsimham Committee was set up in order to study the problems of the Indian
financial system and to suggest some recommendations for improvement in the
efficiency and productivity of the financial institution.
Accepted
Answers:
Narasimham
Committee
In which
year was The Banking Regulation Act passed in India?
1947
1935
1949
1965
Yes, the
answer is correct.
Feedback:
In the wake
of deteriorating condition of cooperative banks in the country, the central
government amended the Banking Regulation Act, 1949
Accepted
Answers:
1949
How many
banks were nationalized in India in the year 1969?
12
29
14
6
Yes, the
answer is correct.
Feedback:
The
government through the Banking Companies (Acquisition and Transfer of
Undertakings) Ordinance, 1969 and nationalised the 14 largest commercial banks
on 19 July 1969.
Accepted
Answers:
14
Imperial
Bank of India was nationalized in which year?
1945
1955
1949
1965
Yes, the
answer is correct.
Feedback:
The creation
of the State Bank of India in July 1955 followed the passage of the Imperial
Bank of India into state ownership.
Accepted
Answers:
1955
The services
rendered by a banker as an agent of his customers are called
Principal services
Agency services
General utility services
Social services
Yes, the
answer is correct.
Feedback:
Commercial
banks function as agents to customers in several aspects, and the amount in
their account is one of the most important agency services rendered by the
banks
Accepted
Answers:
Agency
services
Which of the
following is not a function of a Bank
To accept deposits
To waive loans
To grant advances
To supply input to farmers
Yes, the
answer is correct.
Feedback:
To supply
input to farmers is not the function of a bank.
Accepted
Answers:
To supply
input to farmers
Banks keep
our jewellery and important documents in safe custody with them.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
The bank
provides a locker facility for the safe custody of valuable documents, gold
ornaments and other valuable.
Accepted
Answers:
TRUE
Banks do not
deal in foreign exchange.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
As per the
latest circular Issued by the RBI, there are around 110 entities who are
qualified under the segment of Authorized Dealers category for foreign
exchange.
Accepted
Answers:
FALSE
The
liberalization of Indian Banking and Regulation was done based on
recommendation of________.
R Gandhi Committee
Narasimham Committee
Basel Committee
Khusro Committee
Yes, the
answer is correct.
Feedback:
The
Narsimham Committee was set up in order to study the problems of the Indian
financial system and to suggest some recommendations for improvement in the
efficiency and productivity of the financial institution.
Accepted
Answers:
Narasimham
Committee
Punjab
National Bank was established in _______.
1881
1894
1913
1917
Yes, the
answer is correct.
Feedback:
The bank was
founded in 1894 and is the second largest public sector bank.
Accepted
Answers:
1894
Export and
Import Bank of India (EXIM) establised in______
1986
1985
1982
1990
Yes, the
answer is correct.
Feedback:
Export-Import
Bank of India (EXIM Bank) is a specialized financial institution, wholly owned
by Government of India, set up in 1982.
Accepted
Answers:
1982
RBI provides
the Ways and Means Advances to whom ?
Central Government
State Government
Commercial Banks
Local Government
Yes, the
answer is correct.
Feedback:
2.2 Under
Section 17(5) of RBI Act, 1934, the RBI provides Ways and Means Advances (WMA)
to the States banking with it to help them to tide over temporary mismatches in
the cash flow of their receipts and payments.
Accepted
Answers:
State
Government
As per the
RBI's clean note policy writing on a currency note is
An offense
A crime
A punishable offence
The notes becomes non-legal tender
Yes, the
answer is correct.
Feedback:
Writing on
currency notes is a punishable offence as per the Reserve Bank of India's clean
note policy
Accepted
Answers:
A punishable
offence
RBI has
withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3
paise, 5 paise, 10 paise, 20 paise and 25 paise in which year ?
2010
2011
2012
2013
Yes, the
answer is correct.
Feedback:
RBI has
withdrawn the circulation of coins in the denomination of 1 paise, 2 paise, 3
paise, 5 paise, 10 paise, 20 paise and 25 paise in which year in 2011.
Accepted
Answers:
2011
RBI
increases the rate of interest in the situation of:
Higher inflation
Lower inflation
In the pressure of commercial banks
In the pressure of Government
Yes, the
answer is correct.
Feedback:
In order to
control credit, Reserve Bank of India should Increase CRR and increase Bank
rate. During high inflation in the economy, RBI raises the CRR to lower the
bank's loanable funds.
Accepted
Answers:
Lower
inflation
On which of
the following date, RBI was established ?
22nd April, 1934
1st August, 1935
1st April, 1935
22nd August, 1934
Yes, the
answer is correct.
Feedback:
The Reserve
Bank of India was established on April 1, 1935 in accordance with the
provisions of the Reserve Bank of India Act, 1934.
Accepted
Answers:
1st April,
1935
RBI does not
regulate the credit flow.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
The Reserve
Bank of India, as the central bank of the country, regulates the flow of
credit.
Accepted
Answers:
FALSE
RBI is known
as the Banker's Bank.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
In India,
Reserve Bank Of India or RBI is known as the banker's bank. It is so called
because it acts as a bank for all the commercial banks in India.
Accepted
Answers:
TRUE
Which one of
the following rates is not decided by RBI________
Bank Rate
Base Rate
Repo Rate
Prime Lending Rate
Yes, the
answer is correct.
Feedback:
Prime rate
or prime lending rate is a term applied in many countries to reference an
interest rate used by banks. It is not
determined by RBI
Accepted
Answers:
Prime
Lending Rate
RBI pays
interest on CRR balances of banks at _____
Bank Rate
Repo Rate
Bank Rate minus 2%
Zero %
Yes, the
answer is correct.
Feedback:
With the
amendment of the RBI Act, from 2007, no interest is paid on CRR balances.
Accepted
Answers:
Zero %
Which of the
institution_______ works as the agent of RBI while it has no own offices ?
IMF
SBI
GOI
Ministry of Finance
Yes, the
answer is correct.
Feedback:
SBI works as
an agent RBI, where it has no offices.
Accepted
Answers:
SBI
Interest
rate of deposits of a co-operative credit societies are fixed by :
Registrar
Government
RBI
General Body
Yes, the
answer is correct.
Feedback:
Interest
rate of deposits of a co-operative credit societies are fixed by Registrar.
Accepted
Answers:
Registrar
The rules
and regulations of a co-operative society is formed in its:
Co-operative Act
Co-operative Rules
By-laws
General Body
Yes, the
answer is correct.
Feedback:
The rules
and regulations of a co-operative society is formed in Co-operative Act.
Accepted
Answers:
Co-operative
Act
The
Co-operative Societies Act was passed in India in the year
1904
1912
1919
1949
Yes, the
answer is correct.
Feedback:
The
Co-operative Societies Act was passed in India in the year 1912.
Accepted
Answers:
1912
The Urban
Credit Cooperatives are also commonly known as:
Urban Cooperative Banks
Cooperative Banks
National Banks
Local Banks
Yes, the
answer is correct.
Feedback:
The term
Urban Co-operative Banks (UCBs), though not formally defined, refers to primary
cooperative banks located in urban and semi-urban areas.
Accepted
Answers:
Cooperative
Banks
Life Insurance
Corporation (LIC) is an example
Development Bank
Investment Bank
Cooperative banks
Commercial Banks
Yes, the
answer is correct.
Feedback:
Life
Insurance Corporation (LIC) is an example of Investment Bank.
Accepted
Answers:
Investment
Bank
The primary
co-operative credit society is an alliance of borrowers and non-borrowers
living in a particular location.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
This is an
association of borrowers and non-borrowers living in a particular locality.
Accepted
Answers:
TRUE
Central
co-operative banks are the partnerships
of primary credit societies in a district.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Central
co-operative banks are the partnership of primary credit societies in a
district.
Accepted
Answers:
TRUE
'One man,
One vote' principle was recommended by ______Committee?
Gorwala
MacLagan
Minto Morley
Montague Chelmsford
Yes, the
answer is correct.
Feedback:
'One man,
One vote' principle was recommended by Mac Lagan Committee? One man, one vote
expresses the principle that individuals should have equal representation in
voting.
Accepted
Answers:
MacLagan
The members
of co-operative society have ____liability.
Limited
Unlimited
Joint
Joint & Several
Yes, the
answer is correct.
Feedback:
The
liability of members of a co-operative society is limited to the extent of
capital contributed by them
Accepted
Answers:
Limited
The_________controls
the cooperative banks that falls under the banking regulations act of 1949.
NABARD
RBI
National cooperatie unions of India
Local Government
Yes, the
answer is correct.
Feedback:
The Banking
Regulation Act, 1949 is a law that regulates banking ... cooperative banks
under the supervision of the Reserve Bank of India.
Accepted
Answers:
RBI
Small loans
provided by the Banks to very poor families without any collateral security is
popularly known as ?
Personal finance
Project finance
Macro finance
Micro finance
Yes, the
answer is correct.
Feedback:
Microfinance
is a banking service provided to unemployed or low-income individuals or groups
who otherwise would have no other access to financial services.
Accepted
Answers:
Micro
finance
“One Family
One Bank” tagline is associated with a PSB Bank. The Public Sector Bank (PSB)
in the Question is
Canara Bank
Bank of Maharashtra
Bank of India
Corporation Bank
Yes, the
answer is correct.
Feedback:
Bank of
Maharashtra
Accepted
Answers:
Bank of
Maharashtra
Which of the
following is not a function of the commercial Bank ?
Acting as a lender of last
resort.
Lending to the private and public sectors
The provision of a cheque system for setting
debts
The provision of safe deposit facilities
Yes, the
answer is correct.
Feedback:
Acting as a
lender of last resort. This role is played by RBI.
Accepted
Answers:
Acting as a
lender of last resort.
When a
commercial bank creates credit, its immediate effect is that it raises:
The exchange rate
The interest rate
The money supply
The real national income
Yes, the
answer is correct.
Feedback:
It raises the
money supply.
Accepted
Answers:
The money
supply
Demand
deposits mean:
Saving account
Profit loss account
Chequeable deposits
Time deposits
Yes, the
answer is correct.
Feedback:
A demand
deposit account (DDA) consists of funds held in a bank account from which
deposited funds can be withdrawn at any time, such as checking accounts.
Accepted
Answers:
Chequeable
deposits
Letter of
Credit is used only for international trading payment operations:
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Letters of
credit are indispensable for international transactions since they ensure that
payment will be received.
Accepted
Answers:
FALSE
The saving
bank deposit can be opened with a small amount.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Saving bank
deposits can be operated with small sum of money as these type of accounts are
encouraged by all the commercial banks because it accumulates huge amount of
deposit and are paid nominal rate of interest.
Accepted
Answers:
TRUE
A customer
does not require a bank account to obtain ______
Loan
Overdraft
Cheque
Banker's draft
Yes, the
answer is correct.
Feedback:
A banker's
draft is a cheque (or check) provided to a customer of a bank or acquired from
a bank for remittance purposes, that is drawn by the bank, and drawn on another
bank or payable through or at a bank.
Accepted
Answers:
Banker's
draft
Bank
overdraft is a good source of finance for ______
Short term
Medium term
Long term
Short and Medium term
Yes, the
answer is correct.
Feedback:
Bank
overdraft is a good source of finance for Short term. An overdraft facility
allows the business to spend more money than is deposited in the bank account.
Accepted
Answers:
Short term
A ____ is a
document from a bank guaranteeing that a seller will receive payment in full as
long as certain delivery conditions have been met:
Agreement
Letter of Credit
Bill Paper
Certificate of Deposit
Yes, the
answer is correct.
Feedback:
A letter of
credit, or "credit letter" is a letter from a bank guaranteeing that
a buyer's payment to a seller will be received on time and for the correct
amount.
Accepted
Answers:
Letter of
Credit
A banking
system where business is carried on by a bank through a network of branches
spread throughout the country is known as
Unit Banking
Branch Banking
Chain Banking
Group Banking
Yes, the
answer is correct.
Feedback:
Branch
banking refers to a bank that is connected to one or more other banks in an
area or outside of it.
Accepted
Answers:
Branch
Banking
At present
most of the Indian Banks are falling under the
Chain Banking System
Unit Banking System
Branch
Banking System
Group Banking System
Yes, the
answer is correct.
Feedback:
At present
most of the Indian Banks are falling under the Branch banking system.
Accepted Answers:
Branch
Banking System
Which type
of banking is most helpful in cross-selling?
Virtual Banking
Relationship Banking
Wholesale Banking
Agricultural Banking
Yes, the
answer is correct.
Feedback:
Relationship
banking is strategy used by banks to offer a variety of different products,
strengthen customer loyalty, and generate additional revenue.
Accepted
Answers:
Relationship
Banking
Which one of
the following is controlled by the World Wide Web?
Universal Banking
Virtual Banking
Wholesale Banking
Shadow Banking
Yes, the
answer is correct.
Feedback:
A virtual
bank is a bank that offers banking services through electronic channels.
Accepted
Answers:
Virtual
Banking
The banks
which are engaged in diverse kind of banking activities are called__________
Unit Banking
Modern Banking
Group Banking
Universal Banking
Yes, the
answer is correct.
Feedback:
Universal
banking is a system in which banks provide a wide variety of comprehensive
financial services, including those tailored to retail, commercial, and
investment services.
Accepted
Answers:
Universal
Banking
Deposit
banking brings together the savings of the people and makes them available for
long-term loans for industrialisation.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
banking in
which bank credit is in the form of deposits instead of the issue of notes.
Accepted
Answers:
FALSE
Germany
recommends mixed banking system for rapid industrialization.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
German
Banking system presents the best example of mixed banking in the world. Infact
the German Banks perform such as a large variety of functions that they are
very often referred to as "universal banks".
Accepted
Answers:
TRUE
________is a
system under which an individual bank carries on banking business with a
network of banks. branches spread all over the country
Mixed Banking
Branch Banking
Unit Banking
Corresponding Banking
Yes, the
answer is correct.
Feedback:
Branch
banking refers to a bank that is connected to one or more other banks in an
area or outside of it;
Accepted
Answers:
Branch
Banking
Core banking
is a __________ branch computerization model
Centralized
Decentralized
Unified
ATM
Yes, the
answer is correct.
Feedback:
Decentralized
banking has grown from a blockchain-based FinTech sandbox into a complex array
of platforms through which borrowers, lenders and investors can undertake
bank-like transactions without banks
Accepted
Answers:
Decentralized
Referring to
various types of banking, 'Mixed banking' is _______
Banking system that combines
commercial and investment banking
Banking system that combines virtual and
branch banking
Banking system that combines retail and
wholesale banking
Banking system that combines offline and
relationship banking
Yes, the
answer is correct.
Feedback:
Mixed
banking is an approach where banks undertake both commercial and industrial
banking and is a popular banking model in countries like Germany and Japan.
German banks present a typical case of banking where they undertake multiple
functions and are thus referred to as 'Universal Banks'
Accepted
Answers:
Banking
system that combines commercial and investment banking
BASEL NORMS
are related to the:
Insurance sector
Tele communication
Real estate
Banking sector
Yes, the
answer is correct.
Feedback:
Basel norms
or Basel accords are the international banking regulations issued by the Basel
Committee on Banking Supervision.
Accepted
Answers:
Banking
sector
Which
section was added in the Banking regulation Act to include the Cooperative
Banks under its purview?
Section 61
Section 56
Section 35
Section 28
Yes, the
answer is correct.
Feedback:
In 1965, the
Act was amended to include cooperative banks under its purview by adding the
Section 56.
Accepted
Answers:
Section 56
Which of the
following section of Banking Regulation Act, 1949 deals with licensing of
banking companies?
Section 18
Section 21
Section 22
Section 23
Yes, the
answer is correct.
Feedback:
The Section
22 of the Banking Regulation Act, 1949 deals with the Licensing of Banking
Companies in India.
Accepted
Answers:
Section 22
Which of the
following section of Banking Regulation Act, 1949 deals with restrictions on
loans and advances?
Section 18
Section 20
Section 22
Section 23
Yes, the
answer is correct.
Feedback:
Section 20
of Banking Regulation Act, 1949 (B.R. Act, 1949) prohibits banks from granting
any loan or advance to any of its Directors.
Accepted
Answers:
Section 20
Which of the
following section of Banking Regulation Act, 1949 deals with maintenance of a
percentage of assets?
Section 20
Section 22
Section 23
Section 24
Yes, the
answer is correct.
Feedback:
Section 25
of Banking Regulation Act, 1949 deals with Assets in India.
Accepted
Answers:
Section 24
RBI is a
profit making institution acting in the interest of government?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
the primary
mandate of the RBI is not to earn profits but to preserve the value of the
rupee.
Accepted
Answers:
FALSE
RBI does not
perform any ordinary commercial banking functions?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
RBI is not
involved in any commercial banking activity.
Accepted
Answers:
TRUE
______ of
Banking Regulation Act, 1949 deals with prohibition of trading.
Section 6
Section 7
Section 8
Section 9
Yes, the
answer is correct.
Feedback:
Section 8 of
Banking Regulation Act, 1949 deals with prohibition of trading
Accepted
Answers:
Section 8
______ of
Banking Regulation Act, 1949 deals with use of words “Banker”,”Bank”, “Banking”
or “Banking Company”
Section 6
Section 7
Section 8
Section 9
Yes, the
answer is correct.
Feedback:
Section 7 of
Banking Regulation Act, 1949 deals with use of words “Banker”,”Bank”, “Banking”
or “Banking Company”
Accepted
Answers:
Section 7
Section 17 of
Banking Regulation Act, 1949 deals with _______
Reserve Fund
Cash Reserve
Audit
Assets in India
Yes, the
answer is correct.
Feedback:
Every
banking company incorporated in India shall create a reserve fund and 99 [***]
shall, out of the balance of profit of each year as disclosed in the profit and
loss account prepared under section 29.
Accepted
Answers:
Reserve Fund
The Cash
Reserve Ratio is an effective instrument of credit control. Under the RBI Act,
1934 every ______bank has to keep certain minimum cash reserves with RBI:
Public Bank
Commercial Bank
Industrial and Agricultural Banks
Cooperative Banks
Yes, the
answer is correct.
Feedback:
Under the
RBI Act, 1934 every commercial bank has to keep certain minimum cash reserves
with RBI:
Accepted
Answers:
Commercial
Bank
The RBI is
empowered to vary the CRR between:
2 % and 16%
3% and 15%
5% and 25%
1% and 10%
Yes, the
answer is correct.
Feedback:
Cash reserve
ratio is a certain percentage of bank deposits which banks are required to keep
with RBI in the form of reserves or balances.
Accepted
Answers:
3% and 15%
LAF stands
for:
Liquidity Adjustment Facility
Liquidity Adjustment Finance
Lending Adjustment Facility
Lending Adjusted Finance
Yes, the
answer is correct.
Feedback:
A liquidity
adjustment facility (LAF) is a tool used in monetary policy, primarily by the
Reserve Bank of India (RBI) that allows banks to borrow money through
repurchase agreements (repos) or to make loans to the RBI through reverse repo
agreements.
Accepted
Answers:
Liquidity
Adjustment Facility
Which among
the following defines Repo Rate?
The rate at which banks place their surplus
funds with the RBI
The rate at which banks can borrow against
their excess SLR securities to meet additional liquidity requirements
The rate at which the Reserve Bank is prepared
to buy or re-discount bills of exchange or other commercial paper eligible for
purchase
The rate at which banks borrow
funds from the Reserve Bank against eligible collaterals
Yes, the
answer is correct.
Feedback:
Repo rate is
the rate at which the central bank of a country (Reserve Bank of India in case
of India) lends money to commercial banks in the event of any shortfall of
funds. Repo rate is used by monetary authorities to control inflation.
Accepted Answers:
The rate at
which banks borrow funds from the Reserve Bank against eligible collaterals
Which among
the following defines Reverse Repo Rate?
The rate at which banks place
their surplus funds with the RBI
The rate at which banks can borrow against
their excess SLR securities to meet additional liquidity requirements
The rate at which the Reserve Bank is prepared
to buy or re-discount bills of exchange or other commercial paper eligible for
purchase
The rate at which banks borrow funds from the Reserve
Bank against eligible collaterals
Yes, the
answer is correct.
Feedback:
Reverse Repo
rate is the rate at which the Reserve Bank of India borrows funds from the
commercial banks in the country. In other words, it is the rate at which
commercial banks in India park their excess money with Reserve Bank of India
usually for a short-term.
Accepted
Answers:
The rate at
which banks place their surplus funds with the RBI
Open Market
Operations means Overnight sale/purchase of government securities?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Open market
operations is the sale and purchase of government securities and treasury bills
by RBI or the central bank of the country.
Accepted
Answers:
TRUE
The Central
Bank has the duty to see that legitimate credit requirements are met?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
True. The
Central Bank has the duty to see that legitimate credit requirements are met.
Accepted
Answers:
TRUE
The main
objective of monetary policy in India is______.
Growth with Stability
Reduce Poverty and Achieve Stability
Overall Monetary Stability
Printing of currency
Yes, the
answer is correct.
Feedback:
The
objectives of monetary policy include ensuring inflation targeting and price
stability, full employment and stable economic growth.
Accepted
Answers:
Growth with
Stability
Monetary
Policy is a regulatory policy by which the ______or monetary authority of a
country controls the supply of money, availability of bank credit and cost of
money that is the rate of interest:
Central Bank
DBI
SEBI
IBA
Yes, the
answer is correct.
Feedback:
Monetary
Policy is a regulatory policy by which thecentral bank or monetary authority of
a country controls the supply of money, availability of bank credit and cost of
money that is the rate of interest:
Accepted
Answers:
Central Bank
The goals of
monetary policy do not include the promotion of _____________
Maximum employment
Low Taxes
Stable Prices
Moderate long-term interest rates
Yes, the
answer is correct.
Feedback:
The goals of
monetary policy are to promote maximum employment, stable prices and moderate
long-term interest rates.
Accepted
Answers:
Low Taxes
A retail
bank channels funds from savers to borrowers. This role of a retail bank is
best described as:
Asset transformation
Money creation
Financial intermediation
Proprietary trading
Yes, the
answer is correct.
Feedback:
A retail
bank channels funds from savers to borrowers and serving individuals with their
complete financial needs through efficient channels at supreme levels of
customer service
Accepted
Answers:
Financial
intermediation
Retail
banking provides financial services for:
Personal
Large Industries
Small scale industries
Medium Scale industries
Yes, the
answer is correct.
Feedback:
Retail banking
offers bank accounts and basic financial services to individual consumers.
Accepted
Answers:
Personal
What is
considered a mass market banking
Wholesale banking
Bulk banking
Retail banking
Unit Banking
Yes, the
answer is correct.
Feedback:
Mass market
banking is also called Retail Banking.
Accepted
Answers:
Retail
banking
How many
Bharat QR transactions can be done in a day?
25
There is no limit on number of transactions
There is no limit on number of
transactions but subject to daily transaction amount limits on your
Debit/Credit Cards
Set by banks
Yes, the
answer is correct.
Feedback:
As of now,
there is a limit of twenty transactions per day using Bharat QR. In case the
payments are being made via the BHIM app however, the transaction limits have
been limited to Rs 10,000 per transaction and Rs 20,000 per day.
Accepted
Answers:
There is no
limit on number of transactions but subject to daily transaction amount limits
on your Debit/Credit Cards
Retail Loan
Processing Centres of banks are designed to
Source retail asset business
Process retail loans
Do the valuation/legal opinion wherever
necessary
Release the loan either at their
end or advise sanction to branches
Yes, the
answer is correct.
Feedback:
Retail Loan
Processing Centres of banks are designed to for faster delivery of retail loan
requirements, and there is no more hassle of going to branch.
Accepted
Answers:
Release the
loan either at their end or advise sanction to branches
Cross
Selling refers to selling additional products/services to the existing
customers.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Cross-selling
is the practice of marketing additional products to existing customers, often
practiced in the financial services industry.
Accepted
Answers:
TRUE
Cross
Selling refers to selling additional products/services to the new customers.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Financial
advisors can often earn additional revenue by cross-selling additional products
and services to their existing client base.
Accepted
Answers:
FALSE
_____is not
a characteristic of retail banking?
Banking facilities to individual customers.
Banking facilities to small size businesses
Banking facilities to medium size businesses
Banking facilities to large size
businesses
Yes, the
answer is correct.
Feedback:
To Provide
Banking facilities to large size businesses.
Accepted
Answers:
Banking
facilities to large size businesses
______is not
a Retail Deposit Products?
Recurring Deposit Account
Term Deposit Account
CC/OD account facility to a
corporate office
Current Deposit Account
Yes, the
answer is correct.
Feedback:
To provide
CC/OD account facility to a corporate offices.
Accepted
Answers:
CC/OD
account facility to a corporate office
Retail
banking is confined to ............... Customers
Corporate
Firm
Individual
Individual and corporate
Yes, the
answer is correct.
Feedback:
Retail
banking is solely confined to benefit individual customers.
Accepted
Answers:
Individual
In executing
the standing instructions, there exists a relationship of :
debtor and creditor
Trustee and Beneficiary
Bailee and Bailor
Agent and Principal
Yes, the
answer is correct.
Feedback:
In executing
the standing instructions, there exists a relationship of ,Agent and Principal.
Accepted
Answers:
Agent and
Principal
The banker
has a statutory obligation to:
Honour customers' cheque
Exercise lien
Maintain secrecy of his customers' accounts
Honour customers' bill
Yes, the
answer is correct.
Feedback:
The main
obligations of the banker towards the customers towards the Obligation to
Honour Cheques:
Accepted
Answers:
Honour
customers' cheque
A person
deposits money in the bank with a view to:
Safety
Fear
Earn interest
loan
Yes, the
answer is correct.
Feedback:
A person
deposits money in the bank with a view to earn interest on depoits.
Accepted
Answers:
Earn
interest
A Collecting
banker is given the statutory protection only when he acts as
A banker
A holder for value
A holder in due course
An
agent
Yes, the
answer is correct.
Feedback:
Banker can
avail protection only when he acts as an agent for collection of his customer
cheques but not as its holder for value
Accepted
Answers:
An agent
The document
which can be used only for making local payment is
A cheque
A bill of exchange
A banker's cheque
A draft
Yes, the
answer is correct.
Feedback:
The document
that can be used to make local payment is a Banker's cheque.
Accepted
Answers:
A banker's
cheque
Ordinary
Customers are those who are competent to enter into contract under the laws of
land.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Ordinary
Customers are those who are competent to enter into contract under the laws of
land.
Accepted
Answers:
TRUE
Net worth is
the total assets minus total outside liabilities of an individual or a company.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
An
individual's net worth is simply the value that is left after subtracting
liabilities from assets.
Accepted
Answers:
TRUE
A Miner is a
person who has not attained the age of _______years.
20
18
22
25
Yes, the
answer is correct.
Feedback:
A Miner is a
person who has not attained the age of 18 years.
Accepted
Answers:
18
The balance
of a joint A/c in the name of X,Y,Z Should be paid on the death of X........
To the legal representative of x
To Y and Z
To Y or Z
TO the legal representative of
X,Y and Z
Yes, the
answer is correct.
Feedback:
It should be
paid to the legal representive of X, Y and Z.
Accepted
Answers:
TO the legal
representative of X,Y and Z
The
reasonable period allowed in India for the presentation of a cheque is_______.
1 year
3 months
9 months
Six months
Yes, the
answer is correct.
Feedback:
From the
scheme of Sections 138 and 142 of the Indian Negotiable Instruments Act, 1881,
it is thus seen that a cheque can be presented to the bank within the period of
six months from the date on which it is drawn or within the period of its
validity, whichever is earlier.
Accepted
Answers:
Six months
Non- Banking
Financial Companies are engaged in activities of :
Hire purchase
Agriculture Industry
Sale and Purchase of immovable property
Lease
Yes, the
answer is correct.
Feedback:
A
Non-Banking Financial Company (NBFC) is a company registered under the
Companies Act, 1956 engaged in the business of loans and advances, acquisition
of shares/stocks/bonds/debentures/securities issued by Government or local
authority or other marketable securities of a like nature, leasing,
hire-purchase, insurance etc.
Accepted
Answers:
Hire
purchase
Which of the
following activity is not permissible for NBFC?
loans and advances
acquisition of shares
insurance business
construction of immovable
property
Yes, the
answer is correct.
Feedback:
NBFC does
not include any institution whose principal business is that of agriculture
activity, industrial activity, purchase or sale of any goods (other than
securities) or providing any services and sale/purchase/construction of
immovable property.
Accepted
Answers:
construction
of immovable property
Which of the
following does not have any roles in regulation of NBFCs?
National Housing Bank
RBI
SIDBI
Ministry of Corporate Affairs
Yes, the
answer is correct.
Feedback:
SIDBI does
not have any regulating authority in framing rules for NBFC.
Accepted
Answers:
SIDBI
In India,
Microfinance development and Equity fund is maintained by ?
SIDBI
RBI
NABARD
CII
Yes, the
answer is correct.
Feedback:
Micro
Finance Development and Equity Fund – has been set up . The fund is managed by
a Board consisting of representatives of NABARD, commercial banks and
professionals with domain knowledge.
Accepted
Answers:
SIDBI
The company
will be treated as a non-banking financial company (NBFC) if its financial
assets are more than its total assets by how much:
50%
25%
75%
60%
Yes, the
answer is correct.
Feedback:
The company
will be treated as an NBFC if its financial assets are more than 50 per cent of
its total assets
Accepted
Answers:
50%
The
repayment of deposits by NBFCs is guaranteed by RBI.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
No guarantee
is provided by RBI.
Accepted
Answers:
FALSE
NBFCs are
part of the Payments and Settlements system
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
NBFCs do not
form part of the payment and settlement system and cannot issue cheques drawn
on itself
Accepted
Answers:
FALSE
NBFCs with
asset size more than ___ are considered to be systemically important NBFCs.
Rs 500 crore
Rs 100 crore
Rs 200 crore
Rs 350 crore
Yes, the
answer is correct.
Feedback:
NBFCs whose
asset size is of ₹ 500 cr or more as per last audited balance sheet are
considered as systemically important NBFCs.
Accepted
Answers:
Rs 500 crore
NBFCs which
deploys at least 75 per cent of its total assets in infrastructure loans is
known as ______
Loan Company
Investment Company
Infrastructure Finance Company
(IFC)
Systemically Important Core Investment Company
(CIC-ND-SI)
Yes, the
answer is correct.
Feedback:
IFC is a
non-banking finance company a) which deploys at least 75 per cent of its total
assets in infrastructure loans.
Accepted
Answers:
Infrastructure
Finance Company (IFC)
______test
is used by RBI to determine whether or not a company is into financial
business?
50-50 test
80-20 rule
fintech test
nominal test
Yes, the
answer is correct.
Feedback:
This test is
commonly called the 50-50 test and is used to determine if a company is engaged
in financial business or not. A company which fulfils both these criteria can
then be registered as an NBFC by RBI or other regulatory bodies.
Accepted Answers:
50-50 test
State
Financial Corporations give assistance mainly to develop?
Small and Medium scale
industries
Large scale industries
Cotton industry
Agricultural farms
Yes, the
answer is correct.
Feedback:
the state
Financial Corporation has given assistance to mainly develop medium and small
scale industries.
Accepted
Answers:
Small and
Medium scale industries
NABARD was
established on the recommendations of :
Shivaraman Committee
Malhotra Committee
Kumarmangalam Committee
Narsimha Committee
Yes, the
answer is correct.
Feedback:
NABARD was
established on the recommendations of B. Sivaramman Committee (by Act 61, 1981
of Parliament) on 12 July 1982 to implement the National Bank for Agriculture
and Rural Development Act 1981.
Accepted Answers:
Shivaraman
Committee
Which among
the following is considered as 100% CSR company:
SDB (Small Development Banks)
NABARD
RRBs (Regional Rural Banks)
SBI
Yes, the
answer is correct.
Feedback:
NABARD is
considered as 100% CSR company.
Accepted
Answers:
NABARD
In
insurance, “Causa Proxima” means
Utmost good faith
Contribution
Prevent the causes of loss
Closely connected perils
Yes, the
answer is correct.
Feedback:
Proximate
cause, or the Latin Causa Proxima, relates to the cause of the loss in that the
event of the peril insured against must be covered under the insurance contract
(policy), and the dominant cause of the event must not be excluded.
Accepted
Answers:
Closely
connected perils
Industrial
Development Bank of India (IDBI) established in
1964
1965
1966
1967
Yes, the
answer is correct.
Feedback:
Industrial
Development Bank of India (IDBI) was constituted under Industrial Development
Bank of India Act, 1964 as a Development Financial Institution (DFI) and came
into being as on July 01, 1964 vide GoI notification dated June 22, 1964.
Accepted
Answers:
1964
Providing
finance and also refinance for production and marketing in the rural areas?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
NABARD is
the body responsible for these activities.
Accepted
Answers:
TRUE
Promoting
research in agriculture and rural development
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Solely in
terms of numbers of people, there is a very strong case for giving high
priority to rural development.
Accepted
Answers:
TRUE
ICICI was
formed in ____
1956
1955
1957
1958
Yes, the
answer is correct.
Feedback:
Industrial
Credit and Investment Corporation of India (ICICI) was established in 1955 as
public limited company under Indian Company Act.
Accepted
Answers:
1955
The
principal objective was to create a development financial institution for
providing ______project financing to Indian businesses:
Medium Term
Long Term
Short Term
Medium Term and Long Term
Yes, the
answer is correct.
Feedback:
For
providing medium-term and long-term project financing to Indian businesses.
Accepted
Answers:
Medium Term
and Long Term
Specialized
financial institution, are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Leasing companies
UTI
NBFC
Development bank
Yes, the
answer is correct.
Feedback:
Institutions
aim at promoting the industrial development of a country, these are also called
'Development banks' or Development Financial Institutions (DFI).
Accepted
Answers:
Development
bank
Term refers
to a financial investment in a highly risky and growth oriented venture with
the objective of earning a high rate of return.
Venture capital
Merchant banking
Leasing
Investment
Yes, the
answer is correct.
Feedback:
Venture
capital is a form of private equity and a type of financing that investors
provide to startup companies and small businesses that are believed to have
long-term growth potential. Venture capital generally comes from well-off
investors, investment banks and any other financial institutions.
Accepted
Answers:
Venture
capital
It is needed
for developing a product in the initial stages:
Seed capital
Startup capital
first round funding
Initial funding
Yes, the
answer is correct.
Feedback:
Seed capital
is the funding required to get a new business started. This initial funding,
which usually comes from the business owner(s) and perhaps friends and family,
supports preliminary activities such as market research, product research and
development (R&D) and business plan development.
Accepted
Answers:
Seed capital
Full service
factoring is often
Recourse
factoring
Non-recourse factoring
Agency factoring
Disclosed factoring
Yes, the
answer is correct.
Feedback:
Provides the
complete answer to slow-paying customers, shortage of working capital and if
needed, protection against bad debt losses.
Accepted
Answers:
Recourse
factoring
In mutual
fund, ELSS stands for
Entry to Limited Subscribers Scheme
Equity Linked Saving Scheme
Equity Like Saving Scheme
Entry Load for Saving Scheme
Yes, the
answer is correct.
Feedback:
Equity
Linked Savings Scheme. It is a type of diversified equity mutual fund, that
comes with twin features. First is definitely the tax benefit under section 80C
(therefore it is also known as a tax saving fund).
Accepted
Answers:
Equity
Linked Saving Scheme
Under
factoring the factor acts in the capacity of
an agent of his client
a trustee
a holder for value
an administrator
Yes, the
answer is correct.
Feedback:
Under
factoring the factor acts in the capacity of a holder for value.
Accepted Answers:
a holder for
value
Merchant
banker shall not associate with any business other than that of the securities
market
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
a merchant
banker refers to, “any person who is engaged in the business of issue
management either by making arrangement regarding buying, selling or
subscribing to securities or acting as manager, consultant or rendering
corporate advisory services in relation to such issue management”.
Accepted
Answers:
TRUE
Factoring is
considered as a financial weakness on the part of buying company.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Factoring is
a financial transaction and a type of debtor finance in which a business sells
its accounts receivable (i.e., invoices) to a third party (called a factor) at
a discount.
Accepted
Answers:
FALSE
Refactoring
charges have to be paid in the case of _________
Maturity factoring
With recourse factoring
Invoice factoring
Full service factoring
Yes, the
answer is correct.
Feedback:
A fee charged
by a factoring & invoice discounting specialist (in this case Skipton
Business Finance) when an invoice is recoursed back to the client.
Accepted
Answers:
With
recourse factoring
Equipment
leasing is ............... financial service.
Fund based
Fee based
Non-fund based
Non-fee based
Yes, the
answer is correct.
Feedback:
Obtaining
the use of machinery, vehicles or other equipment on a rental basis. This
avoids the need to invest capital in equipment. Ownership rests in the hands of
the financial institution or leasing company, while the business has the actual
use of it.
Accepted
Answers:
Fund based
__________
is more or less similar to “Consortium financing”
Merchant banking
Retail banking
Whole sale banking
Loan syndication
Yes, the
answer is correct.
Feedback:
a consortium
refers to several lending institutions that group together to jointly finance a
single borrower.
Accepted
Answers:
Loan
syndication
What is the
full form of CRR:
Cash Reserve Rate
Cash Reserve Ratio
Cash Recession Ratio
Core Reserve Rate
Yes, the
answer is correct.
Feedback:
Cash Reserve
Ratio
Accepted
Answers:
Cash Reserve
Ratio
The money
market where debt and stocks are traded and maturity period is more than a year
is classified as
shorter term markets
capital markets
counter markets
long-term markets
Yes, the
answer is correct.
Feedback:
The money
market refers to trading in very short-term debt investments. At the wholesale
level, it involves large-volume trades between institutions and traders. At the
retail level, it includes money market mutual funds bought by individual
investors and money market accounts opened by bank customers.
Accepted
Answers:
capital
markets
In capital
markets, the major suppliers of trading instruments are
government and corporations
liquid corporations
instrumental corporations
manufacturing corporations
Yes, the
answer is correct.
Feedback:
Capital
market is a market where buyers and sellers engage in trade of financial
securities like bonds, stocks, etc.
Accepted
Answers:
government
and corporations
The markets
in which new securities are issued by the corporations to raise funds are
called
primary markets
secondary markets
Gross markets
proceeds markets
Yes, the
answer is correct.
Feedback:
The primary
market is where securities are created. It's in this market that firms sell
(float) new stocks and bonds to the public for the first time. An initial
public offering, or IPO, is an example of a primary market.
Accepted
Answers:
primary
markets
Shares can
be distributed through outright sale by companies to select group of persons,
this is known as__________
Public issue
Private placement
Forex market
Debt market
Yes, the
answer is correct.
Feedback:
A private
placement is a sale of stock shares or bonds to pre-selected investors and
institutions rather than on the open market. It is an alternative to an initial
public offering (IPO) for a company seeking to raise capital for expansion.
Accepted
Answers:
Private
placement
Secondary
market is the market in which new securities are bought & sold
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
The
secondary market is where investors buy and sell securities they already own.
It is what most people typically think of as the "stock market,"
though stocks are also sold on the primary market when they are first issued.S
Accepted
Answers:
TRUE
A blue chip
company is called that which has bad credit rating in the market.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
A blue-chip
company is a nationally recognized, well-established, and financially healthy
company. These are basically the 100 biggest companies listed on the stock
exchange. This category of companies generally sells high-quality and widely
accepted products and services to a large customer base.
Accepted
Answers:
FALSE
QIP stands
for ------------
Qualified Institutional Placement
Qualified Investment Placement
Qualified Investor Placement
Qualified Institutional Players
Yes, the
answer is correct.
Feedback:
Qualified
Institutional Placement
Accepted
Answers:
Qualified
Institutional Placement
Listing is
mandatory for -------------
Trading in stock market
Marketing a new issue
Trading in international market
Declaring dividend
Yes, the
answer is correct.
Feedback:
Listing
means the admission of securities of a company to trading on a stock exchange.
Accepted
Answers:
Trading in
stock market
A depository
is ------------
An electronic transfer through
dematerialization
A fixed deposit in a bank
A transfer of physical securities
Surveillance on price manipulation
Yes, the
answer is correct.
Feedback:
A depository
is a facility or institution, such as a building, office, or warehouse, where
something is deposited for storage or safeguarding.
Accepted
Answers:
An
electronic transfer through dematerialization
Which of the
following is not the objective of the IMF:
To promote international monetary cooperation
To ensure balanced international trade
To ensure exchange rate stability
To provide loan to private
sectors
Yes, the
answer is correct.
Feedback:
To provide
loan to private sectors is not the objective of IMF.
Accepted
Answers:
To provide
loan to private sectors
Which of the
following is known as the Paper Gold?
US Dollar
Pound
Demand draft
Special Drawing Right
Yes, the
answer is correct.
Feedback:
Special
drawing rights (SDRs) are supplementary foreign exchange reserve assets defined
and maintained by the International Monetary Fund (IMF). They represent a claim
to currency held by IMF member countries for which they may be exchanged.
Accepted
Answers:
Special
Drawing Right
Who issues
the Special Drawing Rights (SDR) ?
World Bank
World Trade Organization
International Monetary Fund
Asian Development Bank
Yes, the
answer is correct.
Feedback:
Special
Drawing Rights (SDR) are issued by IMF.
Accepted
Answers:
International
Monetary Fund
Every member
of the IMF is required to subscribe to the fund an amount
Equivalent
to its quota
More than its quota
Less than its quota
Equivalent to its borrowings
Yes, the
answer is correct.
Feedback:
Every member
of the IMF is required to subscribe to the fund an amount equivalent to its
quota.
Accepted
Answers:
Equivalent
to its quota
What was the
name of the Agreement that laid the foundations for the creation of the WTO,
the IMF and the World Bank Group?
The Bretton Woods Agreement
(1944)
The Potsdam Agreement (1945)
The Dayton Agreement (1995)
The Luxembourg Agreement (2003)
Yes, the
answer is correct.
Feedback:
The Bretton
Woods Agreement (1944).
Accepted
Answers:
The Bretton
Woods Agreement (1944)
International
Financial institution is regulated by international law.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
An
international financial institution (IFI) is a financial institution that has
been established (or chartered) by more than one country, and hence is subject
to international law.
Accepted
Answers:
FALSE
International
Financial Institution aimed at proving monetary assistance to the deprived
countries of the world and to establish international monetary cooperation.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
True.International
Financial Institution aimed at proving monetary assistance to the deprived
Accepted
Answers:
TRUE
The value of
Special Drawing Right (SDR) is determined by the basket of ......currencies.
4
5
6
7
Yes, the
answer is correct.
Feedback:
The value of
the SDR is based on a basket of five currencies—the U.S. dollar, the euro, the
Chinese renminbi, the Japanese yen, and the British pound sterling.
Accepted
Answers:
5
The name
“Wall Street” is used to synonyms to..........
BSE
FTSE
NSE
New York Stock Exchange
Yes, the
answer is correct.
Feedback:
Wall Street
is home to the world's two largest stock exchanges by total market
capitalization, the New York Stock Exchange and NASDAQ.
Accepted
Answers:
New York
Stock Exchange
______institutions
is not part of the World Bank community?
IBRD
WTO
IDA
IFC
Yes, the
answer is correct.
Feedback:
The World
Trade Organization (WTO) is an intergovernmental organization that is concerned
with the regulation of international trade between nations.
Accepted
Answers:
WTO
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