Shakthii Academy Increasing Confidence ; Reaching Goals

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1 Banking Awareness Set 1 1. Which of the following foreign banks is going to set up business in India? ' (1) Royal Bank of Scotland (2) Industrial and Commercial Bank of China (3) US based GE Capital 2. The commercial banks have been organised either as public corporations under separate Acts of Parliament or as joint stock companies under the Companies Act 1)1949 2)1956 3)1965 4) The Co-operative bank is governed by the Banking Regulation Act 1949 and Banking Laws (Cooperative Societies Act) of (1) )1960 (3) 1965 (4) Net Inter-bank liabilities have been exempted from the maintenance of Statutory Liquid Ratio effective from (1) April 26, ) April 29, ) May ) July 12, The Reserve Bank is empowered to issue directive to the banking companies to determine the policy In relation to advances to be followed by them. These directive may relate to 1 The margins to be maintained in respect of secured advances 2 The maximum amount of advance to any borrower 3 Either (1) or (2) 4. Both (1) and (2) 6.coperative banks in India finance rural areas under 1)cattle and Milk 2)Farming 3)Hatchery and personal finance 4)all of the above 7. The first among the private sector ranks in Kerala to become a scheduled bank in 1946 under the RSI Act was 1

2 1.south Indian Bank (2) Canara Bank these Shakthii Academy (3) State Bank of Travancore (4) None of 8. Which Bank was not set up during 1906 and 1913? (1) Bank of Baroda (2) Central Bank of India (3) Bank of Mysore (4) Bank of Madras 9. India's oldest, largest and most successful commercial bank, offering the widest possible range of domestic, international and NRI products and services, through its vast network in India and overseas is (1) Allahabad Bank (2) Bank of India (3) State Bank of India (4) Punjab National Bank 10. When the Credit Guarantee Corporation was created? (1) 1971 (2) 1973 (3) 1980 (4) Regional Rural Banks were created in (1) 1968 (2) 1970 (3) 1975 (4) When did the nationalisation of seven banks with deposits over 200 crore take place? (1) 1975 (2) 1980 (3) 1982 (4) Which committee worked for the liberalisation of the banking practices? (1) M Narasimham Committee (2) Y Sabarwal Committee (3) S Ramanujan Committee (4) V Chelliah Committee 14. The State Bank of India is India's largest commercial Bank and is ranked one of the top (1) 10 banks of the world (2) 20 banks of the world (3) 5 banks of the world (4) 3 banks of the world 2

3 15. Till 1980, approximately what percent of the banking segment in India were under Government ownership? (1) 60 % (3) 80 /o (2) 70 % (4) 90 % 16. Magnetic strips in credit cards were used for the first time in (1) 1960 (2) 1970 (3) 1975 (4) Which of the following is not one of the varieties of credit cards in India? (1) ANZ-Gold (2) BOB Exclusive (3) Master Card (4) Bol - Taj Premium 18. The first international credit card was issued to a restricted number of customers in 1987 by (1) Bank of India (2) Andhra Bank (3) Bank of Punjab (4) Bank of Baroda 19. A scheduled Bank must be (1) A company as defined in the Companies Act, (2) An institution notified by the Central Government in this behalf (3) A corporative or company incorporated by or under any law in force in any place outside India 20. Which of the following is true of RBI licensing of Banking Companies? (1) The company is or will be in a position to pay its present or future depositors in full as their claims accrue. (2) That the affairs of the company are not being or are not likely to be conducted in a manner detrimental to the interests of its present or future depositors. (3) That the company has adequate capital structure and earning prospects. Set In which year the concept of credit cards was used with the launch of charge cards in USA by Diners Club and American Express? (1) 1930 (2) 1940 (3) 1950 (4) What is one of the plus features of credit cards in India? (1) Insurance on goods purchased (2) Waiver of payment in case of accidental death 3

4 (3) Lost baggage insurance 3. Assets against which RBI issue bank notes is (1) Gold coin and billions (2) Foreign Securities (3) The bill of exchange and promissory notes payable in India which are eligible for purchase by the bank 4. The Reserve Bank of India is authorised to make to the Central and State Governments ways and means advances which are repayable within (1) 3 months from the date of making of advances (2) 6 months from the date of making of advances (3) 9 months from the date of making of advances (4) 12 months from the date of making of advances 5. The first credit card was issued in India by Visa in (1) 1980 (2) 1981 (3) 1983 (4) The country's first Gold Card was issued from Visa in 1)1982 2)1986 3)1984 4) The number of days given to you on your card before the card issuer starts charging you interest is called (1) Silent Period (2) Advance Period (3) Grace Period (4) None of these 8. In personal loan, one can get a sanctioned loan amount between (1) Rs. 25,000 to 10,00,000 (2) Rs. 25,000 to 5,00,000 (3) Rs. 25,000 to 1,00,000 (4) None of these 9. Car Loan/ auto loan are sanctioned to the extent of (1) 75% upon the ex-showroom price of the car (2) 80% upon the ex-showroom price of the car (3) 85% upon the ex-showroom price of the car (4) 100% upon the ex-showroom price of the car 10. From 2003 to 2004, the international money transfer market grew at the rate of 4

5 (1)8.5% (2)9% (3) 9.3% (4) 9.5% Shakthii Academy 11. Apart from banks few financial institutions and online portals give services of money transfer to India. Which of the following is one of them? (1) Ikobo Money Transfer (2) Union Money Transfer (3) Money Gram International 12. A scheduled bank must have a paid up capital and reserves of an aggregate value of not less than Rs. (1) 5 lakh (2) 10 lakhs (3) 1 crore (4) 5 crore 13. For licensing a foreign bank, the RBI must be satisfied about the fact that (l)the carrying on of banking business by such bank in India will be in the public interest. (2) That the Government or law of the country of its origin does not discriminate against banking companies registered in India (3) That the company complies with all the provisions of the Act applicable to such companies 14. Reserve Bank's prior approval is necessary for appointment or reappointment or termination of appointment of a (1) Chairman (2) Managing Director (3) Manager 15. Banking Regulation Act, 1949 requires every banking company to maintain in India in cash, gold or unencumbered approved securities, an amount which shall not, at the close of business on any day, be less than 25 percent of its net demand and time liabilities in India. This is called (1) Statutory Liquid Ratio (2) Statutory Reserve Ratio (3) Statutory Balance (4) None of these 16. Which of the following is not correctly matched? 5

6 (1) Bengal Central Bank Ltd 1918 (2) Comilla Union Bank Ltd 1922 (3) Hooghly Bank Ltd 1932 (4) Comilla Banking Corporation Ltd The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was (1) Indus Ind Bank (2) Housing Development Finance Corporation Limited (3) United Western Bank (4) Bank of Rajasthan 18. HDFC Bank Limited commenced operations as scheduled commercial bank in (1) January 1995 (2) March 1996 (3) July 1997 (4) July ING Vysya was incorporated in (1) 1980 (2) 1960 (3) 1930 (4) According to Euro Money magazine, which of the following is the world best private bank? (1) Switzerland's UBS (2) Royal Bank of Scotland (3) US based GE Capital (4) Commercial Bank of China Set 3 1. Many times we read about 'Balance of Payment' in economic literature. Which of the following statement(s) define the term correctly? (A) It is a record of all transactions made between one particular country and all other countries. (B) It is a record of all transactions made between the countries wherein the payment was made in a currency other than US Dollar. (C) It is a record of all exports/ imports from/by a country and difference in amount of both in terms of payment in US dollars. (1) Only (A) (2) Only(C) (3) Only (B) (4) Both (A) and (B) (5) Only (B) and (C) 2. As per the existing policy the Cash Reserve Ratio (CRR) of scheduled banks is fixed at a certain percentage of their NDTL. What is full form of NDTL? 6

7 (1) New Demand & Tenure Liabilities (2) Net Demand & Time Liabilities (3) National Deposits & Total Liquidity (4) Net Duration & Total Liquidity (5) New Deposits and Term Liquidity 3. The Reserve Bank of India recently decided to review its monetary policy more frequently. This measure of the RBI will be called RBl's (A) Monetary Measure (B) Financial Market Measure (C) Regulatory Measure (1) Only (A) (2) Only (B) (3) All (A), (B)and (C) (4) Both (A) and (B) (5) Only (C) 4. "Basel Committee on Banking Supervision" is also/or popularly known as (1) Thomas Cook Committee (2) Talwar Committee (3) Bank for International Settlements Committee (4) Peter Cook Committee (5) Banking Regulation Committee 5. Which of the following is/are the highlights of the Foreign Trade Policy , which was reviewed by the Government recently? (A) Government to increase exports upto US $ 200 billion this fiscal year. (B) List of items allowed for duty free imports reduced by 30%. (C) Few towns like Barmer, Bhiwandi and Agra were declared towns of Export Excellence. (1) Only (A) (2) Only (B) (3) Only (C) (4) Only (B) and (C) (5) Only (A) and (C) 6. The Direct Tax Code which was revised recently will be implemented from which of the following dates? (1) April 2011 (2) April 2012 (3) January 2011 (4) January 2012 (5) None of these 7. Government may reduce its budgetary deficit by various measures. Which of the following is NOT one such measure? (1) Market borrowing (2) Deficit financing (3) Foreign grants (4) Increasing taxes (5) Reducing taxes and increasing subsidies 8. 'Commercial Papers' are issued by- 7

8 (1) a company to a bank (2) Banks to Companies (3) Banks to Banks (4) Company to its suppliers 9. MAT provision in Income Tax stands for (1) Medium Alternate Tax (2) Maximum Alternate Tax (3) Minimum Alternate Tax (4) Mild Alternate Tax 10. Many times we read about SWIFT in newspapers. What is its full form? (1) Sound World wide Institution for Transactions (2) Safe Window In case of Financial Transaction (3) Society for World wide Interbank Financial Telecommunication (4) Safe Window for Inter bank Financial Transactions 11. In the world of commodity exchanges - the concept of "A standard contract to buy or sell a specified commodity at a certain date in future and at a market driven price" - is known as (1) Future contract (2) Forward contract (3) Market contract (4) Standard contract 12. The foreign trade policy in India is announced by the (1) Reserve Bank of India (2) Ministry of Commerce (3) FEDAI (4) Ministry of Finance 13. Lending to Self Help Groups (SHGs) by Banks is known as (1) Non priority Sector (2) Priority sector (3) Commercial sector (4) Corporate Sector 14. Through which one of the following source(s), Indian companies are allowed to access funds from abroad? (A) External Commercial Borrowings (ECB) only (B) Foreign Currency Convertible Bonds (FCCBs)/Foreign Currency Exchangeable Bonds only 8

9 (C) Preference Shares only (1) Only (A) (2) Only(B) (3) All (A).(B) and(c) (4) Only (A) and (C) (5) Only (C) Set 4 1. While tackling the problem of inflation, which one of the following aspects is taken into consideration by the RBI? (1) Balance between budget deficit and price stability (2) Balance between growth and financial stability (3) Balance between price of all essential commodities (4) Balance between growth, price stability and financial stability 2. Which of the following is/are a/ an indicator of the financial health of a country? (A) GDP (B) PPP (C) FDI in a year (1) Only (A) (2) Only (B) (3) Only (C) (4) All (A), (B) and (C) (5) None of these 3. Stock Exchanges' play a role in an economy which may be termed as (1) hardly useful (2) useful but need strict regulation (3) harmful to proper capital markets (4) a gambling - where many investors get ruined (5) a very important segment to regulate inflation 4. Which of the following is/are called Key Policy rates by the Reserve Bank of India? (A) Bank rate (B) CRR (C) SLR (1) Only (A) (2) Only(B) (3) Only (B) and (C) (4) Only (A) and (B) (5) All (A), (B) and(c) 5. As per the reports published in various newspapers, the Reserve Bank of India has directed all core investment companies in India to register themselves with it if their asset size is Rs. 100 crore or more. Which of the following is True about the Core Investment Companies (CICs)? (A) CICs are non-banking finance companies. (B) CICs invest in shares for the purpose of taking stake in a company rather than for trading. 9

10 (C) CICs are required to register with RBI as most of them were found involved in business in foreign countries and not in India. (1) Only (A) (2) Only (A) and (B) (3) Only (B) and (C) (4) All (A) (B) and (C) 6.As per newspaper reports, the RBI recently divested it stake in NABARD. Now RBI s stake in it is only (1) 10% (2) 5% (3) 3% (4) 1% 7.Which of the following terms is NOT used in the field of banking and finance? (1) Blue chip companies (2) Commercial paper (3) Hedge (4) Premium Bonds (5) Wobbe Index 8. Which one of the following advice has been given by the Finance Minister of India to Banks, while addressing the 5th International Banking and Finance Conference? (1) Banks should provide ATMs in unbanked areas (2) Banks should extend loans to the people in rural areas (3) Banks should relax security norms for small businesses (4) Banks should prepare a roadmap for financial inclusion covering rural households 9. Expand the term IFRS (1) Indian Financial Review Standards (2) Indian Financial Reporting Standards (3) International Financial Review Standards (4) International Financial Reporting Standards 10. What is a corporate Hedging? (1) It is a mechanism to protect firm's exposure to equity risk (2) It is a mechanism to protect firm's exposure to market risk (3) It is a mechanism to protect firm's exposure to forex risk (4) It is a mechanism to protect firm's exposure in international trade 10

11 11.India is following a system of "fiat money", while issuing currency. What is 'fiat money'? (1) The currency is backed by Government Guarantee (2) The currency is backed by tangible assets (3) The currency is backed by gold reserves (4) The currency is backed by budgetary support 12. A lease (1) is a rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on specified dates to the owner (2) is a legal contract-between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset. (3) is mainly used for machine (4) is one of the ways resorted to by the companies. 13.Factoring (1) is an easy way of raising cap ital from a factoring company by small business. (2) is selling of account receivables on a contract basis for cash payment to a factor before it is due. (3) Is an arrangement for raising short term money against prepaid expenses. (4) is a method of discounting of long term bills. Set 5 1. Under provisions of which one of the following Acts, the RBI issues directives to the Banks in India? (1) RBI Act (2) Banking Regulation Act (3) Essential Commodities Act (4) RBI and Banking Regulation Act 2. Which one of the following tools is used by RBI for selective credit control? (1) It advises banks to lend against certain commodities (2) It advises banks to recall the loans for advances against certain commodities (3) It advises banks to charge higher rate of interest for advance against certain commodities 11

12 (4) It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable 3. For which one of the following Loan Products teaser loans are offered by Banks? (1) Education Loans (2) Commercial Loans (3) Loans against security of gold (4) Retail Trade Loans (5) Home Loans 4. Which one of the following has decided to give guarantee for infra loans? (1) IDBI (2) SBI (3) IIFCL (4) SIDBI 5. Which one of the following has got RBI nod to issue pre-paid cards to its clients? (1) LIC (2) GIC (3) SIDBI (4) NABARD 6. As per recent newspaper reports India's public debt rises 2.8 percent to Rs. 28 lakh crores. Which one of the following is the reason that has forced commercial banks to buy Government securities? (1) Lack of credit growth (2) Increase in credit growth (3) Raising of repo rate (4) Raising of reverse repo rate 7. Which one of the following may be the consequence of buying forex in the market by the RBI? (1) It leads to inflation (2) It leads to control over inflation (3) It does not affect inflation (4) It results into deflation 8. Under provisions of which one of the following Acts, the ReserveBank of India has the power to regulate, supervise and control the banking sector? (1) RBI Act (2) Banking Regulation Act (3) Negotiable Instrument Act (4) RBI and Banking Regulation Act 9. Which one of the following has proposed $ 11 billion infrastructure debt fund? (1) NABARD (2)SBI (3) RBI (4) Ministry of Finance, Govt. of India (5) Planning Commission 10. The NAV of a mutual fund 12

13 (1) Is always constant (2) Keeps going up at a steady rate (3) Fluctuates with market price movements (4) Cannot go down at all 11. A Saving Bank Deposit Account is one where (1) Amounts are deposited and are withdrawn as per requirement of the customers. (2) The deposits are made only once in a year (3) Periodical Fixed amount are deposited month wise and withdrawals are allowed after a fixed period 12. Which of the following is a financial asset? (1) Gold (2) Silver (3) Shares in a demat account (4) Land & buildings (5) None of these 13. Zero balance account is generally allowed to be opened for (1) Salaried class (2) businessmen (3) foreign customers (4) children (5) Senior Citizens 14. In Deposits Account "KYC" (Know Your Customer) has been implemented in 2002 as per directive of- (1) IBA (2) RBI (3) Ministry of Finance (4) SEBI (5) IRDA 15. The regulator of the banking system in India is-- (1) AMFI (2) Finance Minister (3) SEBI 4) IBA (5) RBI 16. Ten Rupee notes contain the signature of (1) Finance Secretary, GOI (2) Chairman, State Bank of India (3) Governor, Reserve Bank of India (4) Finance Minister, GOI (5) Prime Minister 17. Loan against the security of immovable property is by executing an agreement of (1) Assignment (2) Pledge (3) Transfer (4) Mortgage 18. Credit Rating 13

14 (1) is used to rate the borrowers while giving advances. (2) is used to work out performance of the employees. (3) is used to calculate the number of excellent audit rated branches. (4) is NOT used in any Bank. (5) is necessary before giving promotion to employees Set 6 1. In Corporate Hedging, which one of the following types of risks can be covered? (1) Liquidity risk (2) Currency risk (3) Credit risk (4) Transaction risk (5) None of these 2. Bank of Rajasthan is now merged with which of the following banks? (1) AXIS Bank (2) IDBI Bank (3) ICICI Bank (4) HDFC Bank (5) None of these 3. Which of the following is the full form of the abbreviation "IFRS" as used in corporate/finance sector? (1) Indian Financial Reconciliation Standards (2) Interpretation and Formal Reporting System (3) International Financial Reporting Standards (4) International Financial Reporting System 4. As per the new guidelines issued by SEBI, companies are required to list shares within how many days of the closure of the Initial Public Offers (IPOs)? (1) 60 days (2) 12 days (3) 30 days (4) 45 days 5. RTGS stands for (1) Real Time Gross Settlements (2) Reduced Time Gross Settlements (3) Relative Time Gross Settlements (4) Real Total Gross Securities 6. DSCR indicates the ability of a company to- (1) meet its current liabilities (2) service its shareholders (3) meet its long term debt obligations (4) raise further capital 7.An IPO is 14

15 (1) initial price offered by a private limited company to its shareholders (2) an offer by an unlisted company for sale of its shares for the first time to the public (3) used to increase the share capital of an unlisted company (4) a book building process 8.A decreasing current ratio indicates (1) a stable liquidity (2) an increasing liquidity (3) a strained liquidity (4) satisfactory current solvency 9.Private equity investors, invest in a company based mainly on (1) the age of the company (2) the location of the company (3) the activity undertaken by the company (4) the creditability and the valuation of the company (5) the existing profitability of the company 10.Financial ratio analysis of a company helps is understanding (A) the long term debt raising capacity (B) the short term solvency (C) the reasons for fluctuations in its stock prices (D) the net worth of the company (E) the profitability (1) A, B, C, D (2) B, C, D (3) C, D, E (4) C, A, B, D (5) A, B, D, E 11.The RBI reviews its credit and monetary policy at regular intervals and also in between. What is the purpose of the same? (a) To ensure that inflation does not cross the limit. (B) To ensure that banks have enough liquidity. (C) To ensure that cost of the fund does not reach a very high level. (1) Only (A) (2) Only(B) (3) All (A), (B)and (C) (4) Only (B) and (C) (5) None of these 12. The Reserve Bank does not have an office in (1) Kanpur (2) Jaipur (3) Lucknow (4) Bhopal (5) Gulbarga 15

16 13. Which one of the following is the objective of Corporate Social Responsibility (CSR) issued by the Government? (1) To ensure that Companies take steps for rehabilitation of project affected people (2) To ensure that Companies use some of their profits for educating the project affected people (3) To ensure that Companies provide health care to project affected people (4) To ensure that Companies take preventive measures to avoid environmental damage 14. Which one of the following have provided bailout package to Ireland to deal with its debt crisis? (1) EU only (2) IMF only (3) World Bank only (4) Only (1) and (2) above (5) All (1), (2) and (3) above 15. Which one of the following has launched guidebook on standards for exporters? (1) RBI (2) SEBI (3)IBA (4) UNIDO (5) UNESCO 16. Which of the following banks has taken over the Centurion Bank of Punjab? (1) ICICI Bank (2) IDBI Bank (3) HDFC Bank (4) AXIS Bank (5) None of these Set 7 1. The first Bank in India to be given as ISO certification is (1) Punjab National Bank (2) Canara Bank (3) State Bank of India (4) Bank of India 2. The General Bank of India was set up in (1) ) 1785 (3) 1786 (4) The first Indian Bank to have been started solely with Indian capital is (1) Bank of India (2) Punjab National Bank (3) State Bank of India (4) Central Bank 4, The East India Company established Bank of Bengal in (1) 1809 (3) 1834 (2) 1813 (4)

17 5. Bank of Bombay was established in (1) 1843 (2) 1846 (3) 1850 (4) 1840 Shakthii Academy 6. The first Bank in Northern India to get ISO 9002 certification for their selected branches is (1) Punjab National Bank (2) Sind Bank (3) State Bank of Bikaner (4) Allahabad Bank 7. Bank of Madras was established in (1) 1840 (2) 1843 (3) 1846 (4) In 1865 which Bank was established exclusively by Indians? (1) Allahabad Bank (2) Canara Bank (3) Bank of Maharashtra (4) Bank of Baroda 9. The Headquarters of Punjab National Bank established in 1894 was at. (1) Bombay (2) Calcutta (3) Amritsar (4) Lahore 10. India's second largest private sector bank and is now the largest scheduled commercial bank of India is (1) The Federal Bank Limited (2) Bank of India (3) BankofBaroda (4) Punjab National Bank 11. Bank which started as private share holders bank, mostly Europeans is (1) The Federal Bank-Limited (2) Imperial Bank of India (3) Bank of India (4) Bank of Madras 12. The Banking Company Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of (1) 1960 (2) 1965 (3) 1970 (4) In which year the Government nationalised Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas? (1) 1955 (2) 1960 (3) 1971 (4) Banking Regulation Act were enacted in (1) 1939 (2) 1945 (3) 1949 (4)

18 15. The subsidiaries of SBI was nationalised in (1) 1959 (2) 1969 (3) 1979 (4) Bank of India was founded in (1) 1907 in Madras (2) 1906 in Calcutta (3) 1907 in Calcutta (4) 1906 in Mumbai 17. Which of the following is the first Indian Bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974? (1) Bank of Maharashtra (2) Bank of Allahabad (3) Bank of India (4) Bank of Punjab 18. The oldest Public Sector Bank in India having branches all over India and serving the customers for the last 132 years is (1) Allahabad Bank (2) State Bank of India (3) Bank of Baroda (4) Canara Bank 19. The first Indian Commercial Bank which was wholly owned and managed by Indians is (1) Bank of India (2) State Bank of India (3) Central Bank of India (4) Allahabad Bank 20. The State Bank of India serves 90 million customers through a network of (1) 5000 branches (2) 7000 branches (3) 9000 branches (4) 10,000 branches 21. As on 30th June 1999, how many scheduled banks were there in India having total network of 64,918 branches? (1) 100 (2) 200 (3)300 (4) Which of the following is a Scheduled Bank in Private Sector? (1) ICICI Banking Corporation Bank Ltd. (2) HDFC Bank Limited (3) Bank of Punjab Ltd. 23. Which of the following is/are scheduled foreign banks in India? (1) Bank of Tokyo Ltd. (2) Dresdner Bank AG (3) Citi Bank N.C. (4) All of the above 18

19 24. Under which section of the RBIAct of 1934, it is obligatory on the part of the RBI to appoint the SBI as its sole agent at all places where the Bank has no branch or office of its Banking Department but where there is a branch of the State Bank or its Subsidiary bank? (1) Section 38 (2) Section 45 (3) Section 46 (4) Section 52 Set 8 1 At present, all scheduled commercial banks are required to maintain statutory liquid ratio at the rate of % (1) 31.8% on deposit liability outstanding as on September 30, 1994 (2) 25% on incremental deposits after that date (3) Both (1) and (2) (4) Either (l)or (2) 2. Which bank was formed in 1950 with the amalgamation of Bengal Centra] Bank Ltd; Comilla Union Bank Ltd., Hooghly Bank Ltd., and Comilla Banking Corporation Ltd? (1) United Bank of India (2) Central Bank of India (3) Bank of India (4) Vijaya Bank 3. Cooperative banks in India Finance urban areas under (1) Small Scale Units (2) Home Finance (3) Consumer Finance 4) All of the above 4. Initial authorised share capital of each Rural bank was (1) Rs. 5 lakhs (2) Rs. 10 lakhs (3) Rs. 1 crore (4) None of these 5. The commercial banks are governed by all the sections of the Banking Regulation Act but only some of the sections of this Act are applicable to (1) Regional Rural Banks (2) Co-operative banks (3) HDFC 6. The Co-operative banks are organised on a (1) Three tier system (2) Two-tier system (3) Unitary basis (4) None of these 7. RBI issues directives to check speculation and rising prices (1) By exercising moral influence on the banks 19

20 (2) By changing the statutory reserve maintained by Scheduled Banks with the Reserve Bank under Section 42 of the RBI Act (3) By changing the Bank Rate and its policy of granting accommodation to the commercial banks 8. Banking institutions modelled on European lines were first established in (1) Delhi (2) Bombay (3) Bengal (4) Madras 9. The first Indian enterprise in the field of banking based on joint stock limited liability principle was the (1) Oudh commercial Bank started in 1881 (2) BankofAndhra, 1882 (3) Bank of India Punjab National Bank (1894) and People's Bank (1901) was started by (1) LalaLajpat Rai (2) Harkishan Singh (3) Harkishan Lai Gauba (4) Amarjeet Singh 11. A fiscal commission under the Presidenship of Sir Ibra'him Rahimatullah was appointed in October (1) 1921 (3) 1931 (2) 1925 (4) In 1914 foreign banks held over 70 percent of all bank deposits in India. By 1937 their share had decreased to (1)25% (2)34% (3) 46 % (4) 57 % 13. With the enactment of the Regional Rural Banks (Amendment) Act, 1987, the authorised capital of each RRB has been raised to Rs. (1) Rs. 10 lakhs (2) Rs. 1 crore (3) Rs. 5 crores (4) Rs. 10 crores 14. At the end of December 1987 the advances of RRBs to the weaker sections accounted for (1) 70 % of their total direct advances (2) 82 % of their total direct advances 20

21 (3) 92 % of their total direct advances (4) 95 % of their total direct advances Shakthii Academy 15. The Regional Rural Banks avail of the refinance facilities from the (1) National Bank for Agriculture and Rural Development (2) Co-operative Bank (3) Commercial Banks (4) Reserve Bank of India 16. How many Regional Rural Banks the State Bank of India has? (1) 10 (2)20 (3) 30 (4) Which of the following is a rural bank? (l)haryana State Cooperative Apex Bank Limited (2) Sindhanur Urban Souharda Co-operative Bank (3) United Bank of India 18. A commercial bill arises out of bonafide commercial or trade transaction. It should be drawn on and payable in India and mature within (1) 90 days from the date of purchase or discount (2) 60 days from the date of purchase or discount (3) 180 days from the date of purchase or discount (4) None of these 19. If the bill arises out of transaction relating to export of goods from India the period of maturity maybe (1) 120 days (2) 180 days (3) 360 days (4) None of these 20. Bill for financing agricultural operations should be drawn or issued for the purpose of financing seasonal agricultural operations or the marketing of crops and mature within (1)3 months (2) 6 months (3) One year (4) 15 months Set 9 21

22 1. To encourage the practice of rediscounting of bills, the Reserve Bank introduced the Bills Rediscounting Scheme with effect from (1) November 1, 1971 (2) November 2, 1971 (3) December 6, 1974 (4) January 1, The structure of Land Development Banks is unitary (operative directly through their own branches at the district level) in the states of (1) Gujarat (2) Jammu & Kashmir (3) Uttar Pradesh 3. The Land Development Banks meet the requirements of the farmers for (1) Provision of equipment like pumpsets, tractors and machinery (2) Land improvement in the form of levelling, bunding, reclamation of land etc. (3) Sinking of new wells and repairs to old wells (4)All of the above 4. The Central Land Development Banks raised their resources by floating debentures in the market. These debentured carry the guarantee of the State Government and subscribed by the (1) Commercial Banks (2) Life Insurance Corporation (3) Central and State Governments 5. The Land Development Bank secure short term accommodation from the (1) State Governments (2) Commercial Banks (3) State Co-operative Banks 6. Industrial Development Bank of India was set up in (1) 1952 (2) 1956 (3) 1964 (4) IDBI was delinked from the Reserve Bank of India on (1) 16th February 1976 (2) 15th March 1978 (3) 31st March 1980 (4) 1st April

23 8. When did IDBI introduced equipment Finance Scheme, wherein foreign currency loans are made available to industrial concerns for import of capital goods and equipment not related to any specific project? (1)1970 (2)1978 (3) 1984 (4) Industrial Development Bank of India subscribes share and bonds of (l)sfcs (2) SIDCs (3) National Small Industries Corporation Ltd. (4) All of the above 10. The IDBI was wholly owned by the Government of India till (1) (2) (3) (4) The Industrial Development Bank of India raises the bulk of its funds from (1) Market borrowings by way of bonds (2) The borrowings out of National Industrial Credit Funds of the Reserve Bank (3) Foreign currencies by way of loans and private placement of its bonds in foreign capital markets. 12. Which of the following institutions is co-sponsored by IDBI? (1) National Stock Exchange of India (2) Over the Counter exchange of India (3) Discount and Finance House of India Ltd. 13. The Industrial Finance Corporation of India was the first development bank established in India in the year (1) 1948 (2) 1952 (3) 1965 (4) When did the Industrial Finance Corporation of India (IFCI) was converted into a joint stock company to enable it to function with more flexibility? (1) 1985 (3) 1993 (2) 1990 (4)

24 15. Under Project Finance IFCI are provided assistance in different ways. Which of the following is not one of them? (1) Underwriting of equity, preference and debenture issue (2) Guaranteeing the deferred payments in respect of machinery imported from abroad or purchased in India (3) Underwriting of loans raised in foreign currency from foreign financial institution (4)Subscribing to equity preference and debenture issues 16. ICICI was set up as a joint stock company in (1) 1955 (2) 1960 (3) (4) The public-cum right issue of Capital by ICICI was in (1) 1991 (2) 1993 (3) 1996 (4) Recently which financial institutions has granted assistance for technology upgradation and modernisation of balancing equipment out of World Bank's lines of credit (1) Allahabad Bank (2) ICICI Bank (3) Central Bank (4) Bank of India 19. The Industrial Reconstruction Corporation of India Ltd. was set up in (1) 1980 (2) 1983 (3) 1985 (4) The Industrial Reconstruction Corporation of India was renamed as the Industrial Reconstruction Bank of India by an Act of Parliament with effect from March 20, (1) 1971 (3) 1979 (2) 1976 (4) 1980 Set The Industrial Reconstruction Bank of India itself was renamed as Industrial Investment Bank of India in March (1) 1990 (2) 1997 (3) 1999 (4) The Tamil Nadu Industrial Investment Corporation was set up as a joint stock company in (1) 1949 (2) 1952 (3) 1964 (4)

25 3. All the State Financial Corporations except the Tamil Nadu Industrial Investment Corporation, have been set up under the State Financial Corporation Act of (1) 1949 (2) 1951 (3) 1956 (4) Which of the following is not the function of Industrial Investment Bank of India? (1) to act as an agent of Central and State Governments, Reserve Bank, State Bank, Scheduled Commercial and State Co-operative Banks, Public Financial Institutions, SFCs etc. (2) to underwrite stocks, shares, bonds and debentures (3) to underwrite loans deferred payments and performance obligations of any contracts undertaken by industrial concerns (4) to grant loans and advances to industrial concerns. 5. The maximum amount that can be sanctioned to an industrial concern of SFC is (1) Rs. 50 lakhs (2) Rs. 60 lakhs (3) Rs. 75 lakhs (4) Rs. 1 crore 6. When did Reserve Bank of India issue guidelines for the setting up of new private sector banks in India in (1) January 1993 (2) February 1994 (3) March 1995 (4) March The new banks are required to be registered as public limited companies under the Companies Act, 1956, with initial paid up capital of (1993 guide lines) (1) Rs. 50 crores (2) Rs. 75 crores (3) Rs. 100 crores (4) Rs. 200 crores 8. In January 2001, Reserve Bank of India issued fresh guidelines for private banks raising the share capital of banks to (1) Rs. 150 crores (2) Rs. 200 crores (3) Rs. 500 crores (4) None of these 9. Government decided to allow new local area banks in (1) 1995 (2) 1996 (3) 1994 (4) The minimum paid up capital for Local Area Banks is (1) Rs. 1 crore (2) Rs. 2 crores (3) Rs. 3 crores and the promoters contribution is 1 crore 25

26 (4) Rs. 5 crores and the promoters contribution is Rs. 2 crores. 11. National Housing Bank was set up in (1) July 1988 (2) March 1989 (3) March 1990 (4) April New Bank of India was merged with (1) State Bank of India (2) Allahabad Bank (3) Punjab National Bank (4) None of these 13. The subsidiary banks were established under the State Bank of India (Subsidiary) Act of (1) ) 1959 (3) 1965 (4) During recent years State Bank of India and some of the nationalised banks have enlarged their capital by issuing shares to the public. Which of the following is not one of them? (1) Oriental Bank of Commerce (2) Dena Bank (3) Bank of India (4) All of the above 15. The investments of Life Insurance Corporation are regulated by section 27A of the Insurance Act of (1) 1935 (2) 1938 (3) 1940 (4) According to the guidelines issued by the Government what percent of the accretions to the funds of GIC were required to be invested in the socially oriented sectors? (1)50% (2)60% (3) 70 % (4) 80 % 17. The Unit Trust of India is a statutory public sector investment institution set up in (1) 1956 (2) 1964 (3) 1966 (4) Which of the following is not correctly matched? (1) The Unit Linked Insurance Plan (2) The Income Share Scheme (3) Monthly Income Unit Scheme (4) Unit Schemes for Charitable and Religious Trusts and Registered Societies

27 19. The Export-Import Bank of India was set up in (1) January 1, 1982 (2) January (3) March 31, 1985 (4) April 17, The paid up capital of the EXIM Bank is (1) Rs. 100 crores (2) Rs. 200 crores (3) Rs. 500 crores (4) Rs crores Set Which of the following is not a function of the EXIM bank? (1) financing of joint ventures in foreign countries. (2) financing of export and import of machinery and equipment on lease basis. (3) financing of export from and imports into not only India, but also third countries, of goods and services. (4) providing loans to a foreign parry to as to enable it to contribute in the share capital of a joint venture in India. 2. EXIM banks provide loans to foreign Government companies and Financial Institutions under its (1) overseas Buyer's Credit Scheme (2) Lines of Credit to foreign governments (3) Relending facility to banks overseas 3. The EXIM banks provide loans to Indian companies under its (1) Technology and consultancy services (2) Pre-shipment credit in case of export contract for capital goods (3) Direct financial assistance to exporters 4. National Bank for Agriculture and Rural Development (NABARD) was set up on (1) 12th July 1982 (2) 10th August 1981 (3) 12th September 1982 (4) 6th December NABARD provides different types of refinance to the eligible institutions namely (1) State Co-operative Banks 27

28 (2) Regional Rural Banks (3) State Land Development Banks Shakthii Academy 6. If Regional Rural Banks and Cooperative Banks seek permission of the Reserve Bank for opening branches, it will have to obtain recommendation from (1) State Bank of India (2) ICICI Bank (3) NABARD (4) None of these 7. The Housing Bank has launched a Home Loan Account Scheme with effect from (1) July 1, 1989 (2) June 1, 1990 (3) August 15, 1991 (4) September 8, Discount and Finance House of India Ltd. (DFHI) a unique institution of its kind, was set up in (1) April 1988 (2) May 1989 (3) May 1990 (4) June The Share capital of DFHI is (1) Rs. 100 crores (2) Rs. 200 crores (3) Rs. 300 crores (4) Rs. 500 crores 10. At present DFHI's activities are restricted to (1) Government data securities (2) Dealing in commercial papers and certificates of deposits (3) Rediscounting short term commercial bills 11. The Small Industries Development Bank of India (SIDBI) has started its operations from (1) April (2) May (3) June 8, 1992 (4) July 10, The authorised capital of Small Industries Development Bank of India has been raised to (1) Rs. 200 crores (2) Rs. 500 crores (3) Rs crores (4) Rs crores 13. Which of the following countries has sanctioned loans for on-lending to Small Scale units through the refinance scheme of SIDBI? (1) Japan (2) Germany (3) France (4) America 14. The Deposit Insurance Corporation was established by an Act of Parliament on 28

29 (1) January 1, 1978 (2) January 1, 1962 (3) July 10, 1964 (4) August 15, With its share capital of 50 crores, Deposit Insurance and Credit Guarantee Corporation is wholly owned by (1) State Bank of India (2) NABARD (3) Reserve Bank of India (4) None of these 16. The Securities Trading Corporation of India has started operations in (1) June 1994 (2) July 1995 (3) June 1996 (4) August By the numbers of shareholders in India is estimated at (1) 10 million (2) 20 million (3) 25 million (4) 30 million 18. The Unit Trust of India remains easily the biggest mutual fund controlling a corpus of nearly (1) Rs. 50,000 crores (2) Rs. 70,000 crores (3) Rs. 80,000 crores (4) None of these 19. SEBI the capital market regulator, was established in (1) 1992 (2) 1993 (3) 1994 (4) Which of the following banks is bought into by LIC? (1) Bank of Baroda (2) Bank of Punjab (3) Vijaya Bank (4) Corporation Bank 21. Reserve Bank of India was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of (1) Hilton Young Commission (2) Hunter Commission (3) Butler Commission (4) Woods dispatch Set Reserve Bank of India was nationalised in (1) 1948 (2) 1949 (3) 1964 (4) Originally the assets of Issue Department in RBI were to consist of not less than two-fifth of 29

30 gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs. 40 crore in value. Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Rs. 200 crores of which the gold is of at least (1) Rs. 100 crores (2) Rs. 115 crores (3) Rs. 125 crores (4) Rs. 150 crores 3. When did India become the member of IMF? (1) 1940 (2) 1945 (3) 1946 (4) Which of the following is not correctly matched? (1) Agricultural Refinance Corporation of India 1963 (2) Industrial Reconstruction Corporation of India 1972 (3) Reserve Bank of India Act 1934 (4) The Unit Trust of India The Reserve Bank of India is an agent of Central Government but not an agent of (1) Himachal Pradesh (2) Jammu and Kashmir (3) M.P. and U.P (4) Jharkhand and Chhattisgarh 6. The Business Correspondence Model being adopted by the banks provides Banking facilities to which of the following (1) Only Corporate borrowers (2) Only Weaker sections the society and people of small villages (3) Only those who are taking housing loans (4) All (1), (2) and (3) above 7. Which of the following agencies/ organizations in India maintains the Micro Finance Development and Equity Fund which was in news recently? (1) Confederation of Industries in India (CII) (2) Indian Banks Association (IBA) (3) Small Industries Development Bank of India (SIDBI) (4) Reserve Bank of India (RBI) (5) National Bank for Agriculture and Rural Development (NABARD) 30

31 8. As per news in various newspapers kfw Group released another instalment of its financial aid to India, kfw is an organisation/ bank based in (1) France (2) Japan (3) Italy (4) China (5) Germany 9. Which of the following agencies/organisations has decided to make major changes for ULIPs? (1) IRDA (2) RBI (3) AMFI (4) FRBI 10. Which of the following is NOT a financial term? (1) Acid Test (2) Double Fault (3) Gross Profit (4) Depreciation (5) Cash flow 11. In the terms of economics, the recession occurring two times with a small gap in between is known as (1) Double Deflation (2) Deflation 3) Deep Recession 4) Double Dip Recession. 12. A consortium of commercial banks has Joined hands to float a new company which will collect data related to frauds and security risks. Which of the following is the name of the company? (1) Loss Data Consortium (2) Customer Service Corporation (3) Bank net India Ltd. (4) Nu Tech Corporate Services Ltd. 13. As per newspaper reports the Bank of Japan, which is the central Bank of the country took special measures, first time in last six years, to contain the rise in the value of Yen. Why pan had to take this special measure which surprised many countries? (A] Japan was fearful that a rising currency would damage its export-led recovery plan (B) It was one of the measures taken by Japan to come out of its economic setback it suffered in the recent past (c) Since the US Dollar has became a Weak Global Currency, Japan wants the be recognized as the global currency in place of the US dollar (1) Only (A) (2) Only 159 (3) Only (C) (4) Only (A) and (B) (5) Only (B) and (C) 31

32 14. The Reserve Bank of India has set up a Working Group to review current operating procedure of monetary policy including 'LAF. What is full form of LAF (1) Liquid Assets and Funds (2) Liabilities and Funds (3) Liabilities Adjustment Finance (4) Liquidity and Finance (5) Liquidity Adjustment Facility 15. Which of the following organizations/agencies plays a major and crucial role to moderate & control inflation in a country? (A) Central Bank of the country (B) Stock Markets of the country (C) Planning Commission country (1) Only(B) (2) Only(A) (3) Both (A) and (B) (4) Both (B) and (C) (5) A11(A),(B) and(c) Set Which of the following nation is considered the originator of the concept of Micro Finance? (1) India (2) Bangladesh (3) South Africa (4) USA 2. What is the full form of ULIP, the term which was in the news recently? (1) Universal Life & Investment Plan (2) Unit Loan & Insurance Plan (3) Universal Loan & Investment Plan (4) Uniformly Loaded Investment Plan (5) Unit Linked Insurance Plan 3. The main function of I. M. F. is to (1) Finance investment loans to developing countries (2) Act as a private sector lending arm of the World Bank 3) Help to solve balance of payment problems of member countries (4) Arrange international deposits from banks 4. RBI has asked banks to make a plan to provide banking services to all villages having a population 32

33 upto This directive issued by the RBI will fall in which of the following categories? (1) Plan for Financial Inclusion (2) Efforts to meet the targets of Priority Sector Lending (3) Extension of Relief Packages to the Farmers (4) Plan for opening more rural branches 5. Which of the following is not a part of the scheduled banking structure in 'India? (1) Money Lenders (2) Public Sector Banks (3) Private Sector Banks (4) Regional Rural Banks (5) State Co-operative Banks 6. The rate of interest on Savings Bank Account is stipulated by (1) The concerned bank (2) RBI (3) Indian Banks Association (4) Government of India (5) Banking Codes and Standards Board of India 7. Many times we read a term CBS used in banking operation." What is the full form of the letter 'C in the term 'CBS'? (1) Core (2) Credit (3) Continuous (4) Complete 8. Which one of the following is a driving force influencing the industrial growth of an economy? (1) Economic Factors only (2) Investment only (3) Innovation/Market Base only (4) Only (1) and (2) (5) All (l), (2) and (3) 9. By which one of the following years, Government proposes to introduce IFRS norms? (1) April 2011 (2) October 2011 (3) April 2012 (4) October 2012 (5) None of these 10. At which one of the following rate, the Central Bank lends to banks against government securities? (1) RepoRate (2) Reverse Repo Rate 3) Bank Rate 4) SLR (5) CRR 33

34 11. As per the reports published in the newspapers the banks, particularly public sector banks are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India? (A) CARE (B) CR1SIL (C) ULIP (1) OnlyA (2) Only B (3) A and B only (4) Only C (5) All A, B and C 12. As per the newspaper reports the RBI is planning to introduce "Plastic Currency Notes". What is/are the benefits of "Plastic Notes"? (A) Their Shelf life will be longer. (B) It will replace plastic money or credit, debit cards which are giving birth to many fraudulent practices. (C) Printing will be cheaper. (1) Only C (2) Only B (3) Only A (4) All A. B and C 13. Sub Prime Lending is a term applied to the loans made to (1) those borrowers who do not have a good credit history. (2) those who wish to take loan against the mortgage of tangible assets. (3) those who have a good credit history and are known to bank since 10 years. (4) those borrowers who are most preferred customers of the Bank. 14.As per the reports published in various journals and newspapers the "small borrowers" in rural areas still prefer to take informal route for their credit needs. Which of the following is the in-formal route" of credit in financial sector? (1) Credit cards (2) Loan against gold from financial institute (3) Debit cards (4) Moneylender 15.Basel-II norms are associated with which of the following aspects of the banking industry? (1) Risk management (2) Manpower planning (3) Retirement benefits for the employees (4) Corporate Governance (5)None of these Set 14 34

35 1. What is meant by "Underwriting" the term frequently used in financial sector? (1) Under valuation of the assets (2) The Act of taking on a risk for a fee (3) Giving a Guarantee that a loan will not become a bad loan (4) The act of permission to float an IPO 2. As we have noticed many banks of Indian origin' are opening offices/branches in foreign countries. Why is this trend emerging at a very fast pace? (A) These Banks wish to provide banking facilities to foreigners as banking facilities are not plenty in many foreign countries. India wants to take an advantage of the situation. (B) These banks wish to help Indian firms, to acquire funds at internationally competitive rates. (C) These banks wish to promote trade and investment between India and other countries. (1) Only A (2) Only B (3) Only C (4) All A, Band C (5) Only B and C 3. Which of the following is NOT a banking/finance related term? (1) Credit wrap (2) EMI (3) Held to Maturity (4) Exposure limit (5) Diffusion 4. A National development Fund was created by the Government of India a few years ago. What was the purpose of the fund? (A) Boost investment in social sector projects to promote education, healthcare and employment. (B) Capital investments in selected profitable PSEs to yield adequate returns. (C) To fund revision in pay structure of central Government employees. (1) Only A (2) Only B (3) OnlyC (4) Both A and B 5.What is Forex? (1) It is buying of foreign currency (2) It is selling of foreign currency (3) It is buying of one currency and selling of another currency (4) It is simultaneous buying of one currency and selling of another currency 6.Expand the term FLCC. 35