McqMate
| 101. |
Net interest income is |
| A. | interest earned on advances |
| B. | interest earned on investment |
| C. | total interest earn |
| D. | on advances and investment |
| Answer» D. on advances and investment | |
| 102. |
The ……….is an important function of a bank and this function distinguishes banks from the non banking institution. |
| A. | accepting deposit |
| B. | lending money |
| C. | creation of credit |
| D. | agency service |
| Answer» C. creation of credit | |
| 103. |
………..function are the core activities of banking. |
| A. | agency and general utility |
| B. | borrowing and lending |
| C. | accepting deposit a |
| D. | borrow money |
| Answer» B. borrowing and lending | |
| 104. |
Banks lend to special purpose vehicles (SPVs)in the private sector registered under………… for directly undertaking infrastructure projects. |
| A. | reserve bank of india |
| B. | state bank of india |
| C. | local courts |
| D. | companies act. |
| Answer» D. companies act. | |
| 105. |
Banks categorised housing loan ,education loan etc. as……… |
| A. | wholesale loan |
| B. | retail loan |
| C. | risk loan |
| D. | personal loan |
| Answer» B. retail loan | |
| 106. |
Banks extend need based working capital facilities as well as term loans to all NBFCs registered with……… |
| A. | companies act. |
| B. | state bank of india |
| C. | commercial bank |
| D. | reserve bank of india |
| Answer» D. reserve bank of india | |
| 107. |
Investment of banks in Govt. securities and other approved securities is categorised as …… |
| A. | lending |
| B. | slr-investment |
| C. | non-slr investment |
| D. | anbc |
| Answer» B. slr-investment | |
| 108. |
Interest rate risk is a type of |
| A. | credit risk |
| B. | market risk |
| C. | operational risk. |
| D. | all of the above |
| Answer» B. market risk | |
| 109. |
Which of the following is not a motive for the companies to hold cash |
| A. | transactional motive |
| B. | precautionary motive |
| C. | lack of proper synchronization between cash inflows a |
| D. | outflows |
| Answer» D. outflows | |
| 110. |
VaR means |
| A. | value of business at risk |
| B. | value at risk |
| C. | volume on risk |
| D. | value as risk. |
| Answer» B. value at risk | |
| 111. |
In an inflationary trend ,the pricing of the bank products are |
| A. | decreasing trend |
| B. | constant |
| C. | increasing tre |
| D. | d.no relevance. |
| Answer» C. increasing tre | |
| 112. |
……….is a place where inter bank claims arising on account of cheques received for collection by each bank drawn against other banks are settled. |
| A. | investment house |
| B. | issuehouse |
| C. | bankers clearing house |
| D. | none of these |
| Answer» C. bankers clearing house | |
| 113. |
The primery function of central bank is to………….of the country. |
| A. | control the system |
| B. | regulate the monetary system |
| C. | plan the monetary system |
| D. | none of these |
| Answer» B. regulate the monetary system | |
| 114. |
Every central bank has the monopoly right of………. |
| A. | moral suasion |
| B. | note issue |
| C. | direct action |
| D. | credit regulation |
| Answer» B. note issue | |
| 115. |
Open market operation is another important…………… wepon of credit control.? |
| A. | qualitative |
| B. | normal |
| C. | quantitative |
| D. | none of the above |
| Answer» C. quantitative | |
| 116. |
……………… is a method of credit control adopted by the modern central banks? |
| A. | consumer credit |
| B. | margin requirements |
| C. | variable reserve ratio. |
| D. | rationing of credit, |
| Answer» C. variable reserve ratio. | |
| 117. |
The Govt.of India set up the ……….committee(1991) to examine all aspects relating to structure ,organisation and the functioning of the Indian banking system. |
| A. | narasimham |
| B. | malhotra |
| C. | vadia |
| D. | smith |
| Answer» A. narasimham | |
| 118. |
How many banks were in second phase of nationalisation? |
| A. | 4 |
| B. | 5 |
| C. | 6 |
| D. | 7 |
| Answer» C. 6 | |
| 119. |
……….is automation of banks across multiple –delivery channels. |
| A. | anbc |
| B. | obe |
| C. | naba |
| D. | (d) cbs |
| Answer» D. (d) cbs | |
| 120. |
……….was the first public sector bank to tap the equity market in December 1993 |
| A. | sbt |
| B. | pnb |
| C. | sbi |
| D. | boi |
| Answer» C. sbi | |
| 121. |
Large value payment system consist of |
| A. | ecs |
| B. | rtgs |
| C. | neft |
| D. | obe |
| Answer» B. rtgs | |
| 122. |
………..may be defined as an exposure to a transaction with loss ,which occurs with some probability and which can be expected, measured and minimised. |
| A. | profit |
| B. | loss |
| C. | risk |
| D. | opportunity |
| Answer» C. risk | |
| 123. |
What is CRR? |
| A. | cash reserve ratio |
| B. | current ratio rate |
| C. | review report |
| D. | credit rating record |
| Answer» A. cash reserve ratio | |
| 124. |
………….. banks are those banks which are incorporated outside India and their head office are also situated outside India. |
| A. | foreign exchange bank |
| B. | schedule bank |
| C. | non-schedul |
| D. | bank |
| Answer» A. foreign exchange bank | |
| 125. |
Banks have adopted asset-liability management and stress testing as a tool of ………. |
| A. | profit management |
| B. | risk management |
| C. | loss management |
| D. | opportunity management |
| Answer» B. risk management | |
| 126. |
Which of the following NBFC converted itself into a commercial Bank? |
| A. | tata finance |
| B. | reliance capital trust |
| C. | birla mutual |
| D. | kotak mahindra |
| Answer» D. kotak mahindra | |
| 127. |
Which is the current revision & year of UCPDC? |
| A. | ucpdc 500, 1993 |
| B. | ucodc 400, 1993 |
| C. | ucpdc 300, 1973 |
| D. | none of these |
| Answer» A. ucpdc 500, 1993 | |
| 128. |
The rate of which discounting the bills of first class banks is done by RBI is called |
| A. | bank rate |
| B. | prime lending rate |
| C. | loan rate |
| D. | discounting rate |
| Answer» A. bank rate | |
| 129. |
Banking ombudsman has been constituted under which act? |
| A. | banking regulation act |
| B. | rbi act |
| C. | sbi act |
| D. | copra |
| Answer» B. rbi act | |
| 130. |
The major objective of ……..was to ensure financial safety, soundness, and solvency of banks |
| A. | prudential norms |
| B. | risk norms |
| C. | profit norms |
| D. | none of these |
| Answer» A. prudential norms | |
| 131. |
A unit of the Unit Trust of India is a |
| A. | share |
| B. | debenture |
| C. | negotiabl |
| D. | instrument |
| Answer» D. instrument | |
| 132. |
Indian Banks Association (IBA) has a common net working system forsharing the ATM facilities in Mumbai, which is known as |
| A. | atm network |
| B. | shared payment network system |
| C. | cash network |
| D. | none of these |
| Answer» B. shared payment network system | |
| 133. |
Arbitrage is |
| A. | buying and selling in two markets simultaneously |
| B. | a rate of interest |
| C. | a fe |
| D. | arbitrage is a dispute |
| Answer» A. buying and selling in two markets simultaneously | |
| 134. |
E E F C denotes |
| A. | exchange earners foreign currency account |
| B. | importer’s account with bank |
| C. | account maintain |
| D. | by a exporter with rbi |
| Answer» A. exchange earners foreign currency account | |
| 135. |
For which of the following currencies is the Indian rupee quotedagainst 100 units of the foreign currency |
| A. | deutsche mark |
| B. | pound |
| C. | japanese yen |
| D. | us dollars |
| Answer» C. japanese yen | |
| 136. |
Exchange risk in case of foreign currency Non Resident (Banks)scheme (FCNB) is borne by |
| A. | rbi |
| B. | depositor |
| C. | govt. of india |
| D. | concerned bank |
| Answer» D. concerned bank | |
| 137. |
Consortium Advances refer to |
| A. | concurrent borrowings |
| B. | multiple financing |
| C. | joint financing by more than one bank |
| D. | financing of consignment business |
| Answer» C. joint financing by more than one bank | |
| 138. |
NABARD refinance for financing Self Help Groups is to the extent of |
| A. | 25% |
| B. | 50% |
| C. | 75% |
| D. | 100% |
| Answer» D. 100% | |
| 139. |
The term Allonge refers to |
| A. | the sheets of paper used in writing a deed |
| B. | the stamps affixed on document |
| C. | a sheet of paper attach |
| D. | to mortgage deed for the purpose of witness |
| Answer» D. to mortgage deed for the purpose of witness | |
| 140. |
……………is a system of banking in which one bank carries on its business through a network of branches spread all over the country. |
| A. | chain banking |
| B. | unit banking |
| C. | branch banking |
| D. | none of these |
| Answer» C. branch banking | |
| 141. |
As the credit card gives the overdraft facilities and additional………….power to customer. |
| A. | lending |
| B. | deposit |
| C. | borrowing |
| D. | creating |
| Answer» C. borrowing | |
| 142. |
………..represents short-term loans granted either to the discount houses or to other banks which are obtainable at call. |
| A. | balance with other banks |
| B. | money at call and short notice |
| C. | bills discount |
| D. | cash in hand |
| Answer» B. money at call and short notice | |
| 143. |
Banking ombudsman means |
| A. | person appointed to recover dues from defaulting borrowers |
| B. | a person to whom customer can approach for redress of his grievances |
| C. | a person appoint |
| D. | to settle dispute between employees and management |
| Answer» B. a person to whom customer can approach for redress of his grievances | |
| 144. |
NGO is the term associated with |
| A. | shg |
| B. | pmry |
| C. | seeuy |
| D. | agri. advances |
| Answer» A. shg | |
| 145. |
Full form of SLR |
| A. | statutory liquidity ratio |
| B. | state level recovery |
| C. | sundry leverage ratio |
| D. | state liquidity reserve |
| Answer» A. statutory liquidity ratio | |
| 146. |
C.R.A. in banking parlance stands for |
| A. | credit rating association |
| B. | credit rating agency |
| C. | credit risk assessment |
| D. | none of these |
| Answer» C. credit risk assessment | |
| 147. |
E.P.S. in share market stands for |
| A. | earning per share |
| B. | electronic payment system |
| C. | employee pension scroll |
| D. | equated payment system |
| Answer» A. earning per share | |
| 148. |
The Securitization and Reconstruction of Financial Asset and enforce of Security Interest Act came into force from |
| A. | 21.08.02 |
| B. | 21.06.02 |
| C. | 21.07.02 |
| D. | 21.12.02 |
| Answer» B. 21.06.02 | |
| 149. |
The powers of the Board of Directors to borrow from the bank are mentioned in |
| A. | article of association |
| B. | memorandum of association |
| C. | special resolution |
| D. | a & b |
| Answer» B. memorandum of association | |
| 150. |
The currency Euro has been introduced w.e.f. |
| A. | 01.01.99 |
| B. | 01.01.2000 |
| C. | 01.08.99 |
| D. | 01.03.99 |
| Answer» A. 01.01.99 | |
| 151. |
Who is authorized to permit premature closer of PPF A/c |
| A. | rbi |
| B. | ministry of finance department of economic affairs |
| C. | chairman of concerning bank |
| D. | none of these |
| Answer» B. ministry of finance department of economic affairs | |
| 152. |
What is USGAAP? |
| A. | united states generally accepted accounting principles |
| B. | union state generous agreement & accounting principles |
| C. | unit |
| D. | state general allies & army practices |
| Answer» A. united states generally accepted accounting principles | |
| 153. |
What is the average percentage of Banking transactions through non- branch route in private sector Banks |
| A. | 50% |
| B. | 60% |
| C. | 70% |
| D. | 65% |
| Answer» C. 70% | |
| 154. |
The C D Ratio of all schedule commercial Banks as on June 2003stood at |
| A. | 51% |
| B. | 57% |
| C. | 53% |
| D. | 65% |
| Answer» B. 57% | |
| 155. |
The Gross NPA percentage of the following country is highest in Asia |
| A. | india |
| B. | china |
| C. | malaysia |
| D. | indonesia |
| Answer» B. china | |
| 156. |
Credit Risk Assessment of the borrowal units is for |
| A. | assessing the repayment capacity |
| B. | to fix the pricing of the product |
| C. | to review the units performance |
| D. | none of these |
| Answer» B. to fix the pricing of the product | |
| 157. |
To be categorized as a schedule Bank the minimum capital & reserve required is |
| A. | rs. 10 lacs |
| B. | rs. 5 lacs |
| C. | rs. 20 lacs |
| D. | rs. 7 lacs |
| Answer» B. rs. 5 lacs | |
| 158. |
For Business process re-engineering and IT strategy which bank has employed ‘Gartner |
| A. | b |
| B. | sbi |
| C. | pnb |
| D. | bom |
| Answer» A. b | |
| 159. |
The objective of Government to appoint Narsimhan Committee is |
| A. | to strengthen the banking system |
| B. | to improve customer service |
| C. | to strengthen the credit portfolio |
| D. | none of these |
| Answer» A. to strengthen the banking system | |
| 160. |
Which Bank has recently tied up with Apollo Hospital for financing medical facilities |
| A. | icici |
| B. | hd |
| C. | bob |
| D. | sbi |
| Answer» D. sbi | |
| 161. |
The full form of RBS is |
| A. | risk based supervision |
| B. | rating by system |
| C. | role bas |
| D. | supervision |
| Answer» A. risk based supervision | |
| 162. |
………….prescribes two tiers of capital for the banks. |
| A. | basel-i |
| B. | basel-ii |
| C. | basel-iii |
| D. | none of these |
| Answer» A. basel-i | |
| 163. |
Pricing is equals to |
| A. | cost of the product |
| B. | break even point of the firm |
| C. | function of risk rating |
| D. | all of the above |
| Answer» C. function of risk rating | |
| 164. |
Under the Banking Ombudsman scheme the value of claim shouldn't exceed |
| A. | 5 lac |
| B. | 10 l |
| C. | 15 lac |
| D. | 20 lac |
| Answer» D. 20 lac | |
| 165. |
Which Bank has introduced ‘Pre-paid Card’ first |
| A. | obc |
| B. | bob |
| C. | corporation bank |
| D. | sbi |
| Answer» A. obc | |
| 166. |
The minimum Capital Adequacy Ratio currently fixed by RBI for Banksis |
| A. | 12% |
| B. | 10% |
| C. | 9% |
| D. | 11% |
| Answer» C. 9% | |
| 167. |
Who can fix the interest rates of NRE & FCNB deposits ? |
| A. | rbi |
| B. | banks, as per the directive of rbi |
| C. | govt. of india |
| D. | iba |
| Answer» B. banks, as per the directive of rbi | |
| 168. |
The following is not a housing finance intermediary agency |
| A. | hdfc |
| B. | hudco |
| C. | nhb |
| D. | sidco |
| Answer» D. sidco | |
| 169. |
Who is authorised to issue coin in India |
| A. | rbi |
| B. | ministry of finance |
| C. | sbi |
| D. | none of these |
| Answer» B. ministry of finance | |
| 170. |
Bank can change interest rate without reference to its PLR in thefollowing |
| A. | housing loans |
| B. | nre/ fcnb deposits |
| C. | personal loans |
| D. | educational loans |
| Answer» B. nre/ fcnb deposits | |
| 171. |
The maximum penal rate of interest that can be charged is restrictedto |
| A. | 2 % |
| B. | 3 % |
| C. | maximum spre |
| D. | announced over plr |
| Answer» C. maximum spre | |
| 172. |
Banks can change rate of interest beyond spread announced by themon advances granted to |
| A. | film companies |
| B. | chit funds |
| C. | nbfc s |
| D. | hotels |
| Answer» C. nbfc s | |
| 173. |
To which category of customers are banks prohibited to sanctionloans against shares and debentures? |
| A. | institutions |
| B. | psus |
| C. | banks |
| D. | trust and endowments |
| Answer» D. trust and endowments | |
| 174. |
What should be the method of valuation for advances againstshares/ debentures / bonds? |
| A. | face value |
| B. | market price |
| C. | book value |
| D. | average value |
| Answer» B. market price | |
| 175. |
Which kind of bills should not be discounted by banks as per RBIregulation? |
| A. | customs duty |
| B. | installation charges |
| C. | sale of goods |
| D. | purchase of books |
| Answer» A. customs duty | |
| 176. |
What action is taken if one of the customers tenders forged note? |
| A. | he is sent to prison |
| B. | note is returned with remark, forged note |
| C. | note is impound |
| D. | note is torn |
| Answer» C. note is impound | |
| 177. |
Head quarter of ADB is situated at |
| A. | new york |
| B. | chicago |
| C. | manila |
| D. | tokyo |
| Answer» C. manila | |
| 178. |
Indian Companies have been allowed to invest upto US$ ---abroad |
| A. | 10 million |
| B. | 15 million |
| C. | 5 million |
| D. | 20 million |
| Answer» A. 10 million | |
| 179. |
As per Basel-I ………..capital can absorb losses without a bank being required to cease trading. |
| A. | tier-i |
| B. | tier-ii |
| C. | tier-iii |
| D. | none of these |
| Answer» A. tier-i | |
| 180. |
Which of the following definition is most correct. UCPDC 500 is |
| A. | set of rules applicable to cc transactions |
| B. | set of rules having 500 article |
| C. | set of rules fram |
| D. | by icc governing lc business globally |
| Answer» C. set of rules fram | |
| 181. |
If market quotes USD/INR as 43.61/63 ,at what rate can you buy USD at the given quote. |
| A. | 43.61 |
| B. | 43.62 |
| C. | 43.63 |
| D. | none of the above |
| Answer» C. 43.63 | |
| 182. |
A new category of scheduled banks came into existence in 1975 as RRBs under the ……… |
| A. | regional rural banks ordinance,1975. |
| B. | regional reconstruction banks ordinance,1975. |
| C. | register |
| D. | rural banks ordinance,1975. |
| Answer» A. regional rural banks ordinance,1975. | |
| 183. |
The three banks recently have entered in a Mega ATM sharing pact. They are |
| A. | sbi, icici, & b |
| B. | sbi, icici, hd |
| C. | icici, andhra bank, hdfc |
| D. | andhra bank, canara bank, sbi |
| Answer» B. sbi, icici, hd | |
| 184. |
Devaluation of currency stands for |
| A. | reducing the value of internal currency in terms of foreign currency |
| B. | increasing the value of indian currency in terms of foreign currency |
| C. | keeping the value of internal currency constant in terms of foreign currency |
| D. | none of these |
| Answer» A. reducing the value of internal currency in terms of foreign currency | |
| 185. |
Pari Passu charge refers to a charge |
| A. | ranking in priority, regardless of quantum of advances |
| B. | merely notional in nature |
| C. | ranking equally in priority in proportion to the lender’s share of advance |
| D. | none of these |
| Answer» C. ranking equally in priority in proportion to the lender’s share of advance | |
| 186. |
What are the four categories as per Kapur Committee recommendations for loan applications under SSI segment |
| A. | upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacs |
| B. | upto 10 lacs, upto 25 lacs, upto 50 lacs and above 50 lacs |
| C. | upto 2 lacs, upto 1 crores, upto 2 crores, a |
| D. | above 2 crores |
| Answer» A. upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacs | |
| 187. |
The area of operation of …………banks are maximum of three geographically neighbouring districts and they are allowed to open branches only in their area of operation. |
| A. | local area banks |
| B. | co-operative banks |
| C. | rrb |
| D. | foreign exchange banks |
| Answer» A. local area banks | |
| 188. |
The banker advances money against immovable property only when the property is ……….to the banker. |
| A. | loan |
| B. | mortgaged |
| C. | pledg |
| D. | hypothicated |
| Answer» B. mortgaged | |
| 189. |
EXIM Bank was set up on |
| A. | january1, 1982 |
| B. | january 26,1989 |
| C. | march 15,1981 |
| D. | march15,1982 |
| Answer» A. january1, 1982 | |
| 190. |
Which commission recommented the foundation of RBI |
| A. | sarkaria commission |
| B. | hilton young commission |
| C. | narasimha commission |
| D. | none of these |
| Answer» B. hilton young commission | |
| 191. |
At what frequency can Banks pay interest on Saving Bank Account asper RBI guidelines |
| A. | monthly |
| B. | quarterly |
| C. | half yearly |
| D. | yearly |
| Answer» C. half yearly | |
| 192. |
The VSAT communication network for banks and financial institutionslaunched by RBI is known as |
| A. | swift |
| B. | sbi net |
| C. | bank net |
| D. | infinet |
| Answer» D. infinet | |
| 193. |
………………..is a transaction where by money is borrowed by the debtor on the security of the movable property. |
| A. | hypothication |
| B. | mortage |
| C. | pledge |
| D. | charge |
| Answer» A. hypothication | |
| 194. |
Most modern banking systems are based on |
| A. | money of intrinsic value. |
| B. | commodity money. |
| C. | 100 percent reserves |
| D. | fractional reserves. |
| Answer» D. fractional reserves. | |
| 195. |
Which bank has become the first foreign bank to open a branch inIsrael's diamond exchange: |
| A. | american express bank |
| B. | citibank |
| C. | standa |
| D. | chartered bank |
| Answer» D. chartered bank | |
| 196. |
RBI controls money market qualitatively through |
| A. | open market operation |
| B. | selective credit control |
| C. | bank rate |
| D. | none of the above. |
| Answer» B. selective credit control | |
| 197. |
What was established in Kolkata on 1 st April 1935 in accordance with the provision of an act of the same name passed in 1934? |
| A. | sbi |
| B. | rbi |
| C. | icici |
| D. | idbi |
| Answer» B. rbi | |
| 198. |
What unique distinction do the General Bank of India and the Bank of Hindustan founded in and around 1786 posses in the context of Indian banking history? |
| A. | they are not registered banks |
| B. | they are owned by rbi |
| C. | they are first indian banks |
| D. | they are nationalized banks. |
| Answer» C. they are first indian banks | |
| 199. |
The Imperial Bank of India was re-named on 30th April 1955 as what? |
| A. | sbi |
| B. | rbi |
| C. | icici |
| D. | idbi |
| Answer» A. sbi | |
| 200. |
Which bank operates on behalf of the SBI in Nigeria and was established in 1981? |
| A. | sbi |
| B. | rbi |
| C. | icici |
| D. | inmb |
| Answer» D. inmb | |
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