Core Course Banking Services Management - … of Distance Education Banking Services Management Page...

School of Distance Education

Banking Services Management

UNIVERSITY OF CALICUT

SCHOOL OF DISTANCE EDUCATION

B Com(Specialization- Banking & Insurance)

(2011 Admission Onwards)

V Semester

Core Course

Banking Services ManagementQUESTION BANK

1. Who regulates the money circulation in India?(A) State Bank of India(B) Reserve Bank of India

(C) NABARD(D) Commercial Banks

2. Which of the following is not an organized sector in India?(A) Nationalised Banks(B) Regional Rural Banks

(C) Cooperative Banks(D) Chits and Money lenders

3. Who will settle the grievances of customers of banks?(A) Reserve Bank of India(B) State Bank of India

(C) Local Courts(D) Ombuds Men

4. Who introduced the Banking Ombudsmen Scheme?(A) RBI(B) SBI

(C) Ministry of Finance(D NABARD

5. Which was the firth Bank corporated by the Indians? (1881)(A) Imperial Bank of India(B) State Bank of India(C) Avadh Commercial Bank(oudh)(D) Reserve Bank of India



6. When was Reserve Bank of India established?(A) 1920(B) 1925

(C) 1935(D) 1948

7. When was Reserve Bank of India Nationalised?(A) 1947(B) 1948

(C) 1949(D) 1950

8. When was Indian Banking Act come into force?(A) 1948(B) 1949

(C) 1950(D) 1951

9. Imperial Banks were amalgamated and changed as _________(A) Reserve Bank of India(B) State Bank of India

(C) Subsidiary Banks(D) Union Bank of India

10. How many banks were first nationalised?(A) 10(B) 12

(C) 14(D) 16

11. When was the second phase of nationalisation done?(A) 9th July 1969(B) 10th July 1968

(C) 16th August 1985(D) 15th April, 1980

12. Who will act as the banker to the Government of India?(A) State Bank of India(B) Reserve Bank of India

(C) NABARD(D) Nationalised Banks

13. Where is the Head Quarter of Reserve Bank of India?(A) Mumbai(B) Delhi

(C) Kolkotta(D) Ahmedabad

14. When was Lead Bank Scheme introduced?(A) 1967(B) 1968

(C) 1969(D) 1974

15. The first development financial institution in India that has got mergedwith a bank is

a) IDBIb) ICICIc) IDFC

d) UTIe) None of these

16. ……….prepared a framework through a consultative process to secureinternational convergence of supervisory regulations governing the capitaladequacy of international banks.

a) Basel Committee on Banking Supervisionb) Banking Committee on Banking Supervisionc) Basel Company on Banking Supervisiond) Banking Company on Banking Supervisione) None of these



17. Gilt edged securities refer toa) Government Securitiesb) Securities issued by municipal corporationsc) Securities issued by first class companiesd) None of these

18. Indian Banks Association (IBA) has a common net working system forsharing the ATM facilities in Mumbai, which is known as

a) ATM Networkb) Shared Payment Network Systemc) Cash Networkd) None of these

19. World Bank stands fora)NABARDb) GATT

c) IBRDd) Bank of England

20. Where is the headquarters of SWIFT?a) Hong Kongb) Brussels

c) Londond) Mumbai

21. NABARD is aa)Department of RBIb) Wholly owned subsidiary of RBIc) Subsidiary of SBId) None of the above

22.Which of the following statement is correct.a) Foreign Exchange markets are localized marketsb) Foreign Exchange markets operate within a country’s time zone.c) Foreign Exchange Markets are dynamic and round the clock

marketsd) Foreign Exchange markets are used only for trade related

transactions.

23. Who is the Governor of RBI?a) Bimal Jalanb) Y V Reddyc) Raghuram Rajan

d) Ranga Reddye) Duwuri subbarao

24. Section 14 of Banking Regulation Act, 1949(a) Prohibits a banking company from creating a charge upon any

unpaid capital of the company.(b) Contains a system of licensing of banks by the R.B.I.(c) Provides that the subscribed capital of a banking company should

not be less than one-half of its authorized capital.(d) None of these

25. A Bank is under a statutory obligations to honour its customer'scheques vide



(a) Section 10 of the Banking Regulation Act, 1949.(b) Section 3 of the R.B.I. Act, 1934.(c) Section 31 of the Negotiable Instruments Act, 1881.(d) None of these

26.The Reserve Bank of India was originally constituted as a share holder'sBank with a share capital of --

(a) Rs. 50 lakh(b) Rs. 100 lakh

(c) Rs. 10 crores(d) Rs. 5 crores

27. Infrastructure Development Finance Company was established in -(a) 1961(b) 1997

(c) 1994(d) 1991

28. Nationalised Banks have been permitted to offer their equity shares tothe public to the extent of 49% of their capital as per amendments made in1994 in

(a) Banking Regulation Act, 1949(b) Banking Companies (Acquisition & Transfer of Undertakings) Acts

1970/1980(c) both in (i) and (ii)(d) none of the above

29. EXIM Bank is owned by -(a) Govt, of India and RBI jointly(b) RBI and select Commercial Banks jointly(c) Fully owned by Govt, of India(d) partly by financial institutions

30. Contribution towards Rural Infrastructure Development Fund is made by(a) NABARD and Commercial Banks jointly(b) State Govts. And Govt, of India(c) Only those commercial banks who fail to achieve the stipulated

benchmark of agricultural advances and / or priority sector advances(d) Infrastructure Development Finance Company

31. Credit rationing is a…………method of credit control.(a) quantitative credit control(b) qualitative credit control

(c) direct credit control(d) continuous credit control

32. The development programme began in our country with the launch ofa. Community Development Programmeb Integrated Rural Development Programmec Small Farmers Development Agencyd. Intensive Agriculture Area Programme

33. "Sans recourse" means ____.a I am not afraidb. Do not touch me

c Ask the drawerd. Without liability to me



34. When a drawer draws a cheque without keeping sufficient balance andif the cheque is bounced for insufficient funds. The drawer is punishablewith imprisonment which may extend to and or a fine.

a Two Monthsb. One Year

c. Four Monthsd. Six Months

35. The highest credit risk rating that can be awarded to any company byCRISIL is…..

a ++Ab AAA

c. +AAd. None of the above

36. Bankers, in general, are hesitant to finance HUF because .a The firms ceases to exist when the Karta is dead.b. The firm ceases to exist with the death of any of the male coparcener.c The liability of the firm to the banker is susceptible to change with

the birth of male child or with the death of a male coparcener in theHUF.

d. None of the above.

37. Factoring means .a Financing against bills receivables.b. Financing invoices without recourse only.c Purchasing and/or administering the receivables of a concern.d. Collecting the receivables and remitting to the seller.

38.Under law of limitation , the liability of a guarantor is .a 3 years form the date of document.b. 3 years from the date of default of the advance.c. 3 years from the date when the demand is made on guarantor.d. There is not limit of time.

39.The first bank to be established in India was ________ ,a Bank of Bengalb. Bank of Hindustan

c. Allahabad Bankd. Punjab National Bank

40. Which type of securities are held by Reserve Bank of India beforeissuance of currency notes ?

a Gold coins and bullionb Foreign Securitiesc. Government of India's securitiesd. All of these

41. Quasi Negotiable Instrument is accepted like Negotiable Instrumentbecause of

(a) the force of law(b) the customs and practice(c) their character of negotiability(d) none of these

42. Loan documents executed out of India must be presented forregistration within……….of its arrival in India.



(a) three months(b) four months

(c) six months(d) twelve months

43. Usance bills or promissory notes drawn out of India are required to bestamped by

(a) first holder in India(b) any holder

(c) any party

44.Command Area Development Programme relates to __________(a) Desert development(b) Hill area development

(c) Livestock development(d) Irrigation development

45. The minimum percentage of Priority Sector advances to be maintainedby foreign banks in India is .

(a) 40%(b) 22%

(c) 32%(d) 18%

46. Margin money scheme of KVIC is applicable to the project of individualsand entrepreneurs ______________ .

(a) Where the total project cost does not exceed Rs. 10 lakh(b) Where the total project cost does not exceed Rs. 25 lakh(c) Where the total project cost does not exceed Rs. 5 lakh(d) None of these

47. "Customer" is defined in -a Banking Regulation Actb. N.I. Act

c. R.B.I. Actd. Nowhere it is defined

48. Prospectus is issued by a Private Limited Company when it issuesa Debenturesb Sharesc. Both debentures and sharesd. None of these

49. A Public Limited Company should have minimum membership of -a 50 b. 15 c. 7 d. No limit

50. Introduction of rating methodology for banks was introduced by RBI onthe lines of-

a CAMELb. IRAC

c. CMAd. None of these

51. In terms of the N.I. Act, finder of a lost cheque is :a. A holder but not holder in due course, if payable to orderb. A holder in due course, if payable to bearerc. Both holder and holder in due course, in either cased. None of these

52. The charge created on a security of National Savings Certificate is -a Pledgeb. Hypothecation

c. Assignmentd .Mortgage



53. Internet is the cheapest of all banking channels and helps banks togain substantially in terms of………….cost.

a. auditingb. deposit

c. investmentd. transaction

54. Drawing power in an account means(a) Limit sanctioned(b) Value of security(c) Value of security minus unpaid stock(d) Value of stock minus unpaid stock minus margin

55. Lien becomes time-barred three years after(a) the date of loan(b) date of delivery o the relative goods(c) due date of loan(d) lien has no limitation period

56. Negative lien means -(a) A declaration by a company not to encumber assets of the

company without previous consent of banker(b) Deposit of title deeds with the Bank with an oral declaration to

mark bank's lien(c) A lien letter executed by the company authorising the Bank to

mark lien on its fixed deposit receipt(d) A trust letter executed by the company when goods are taken from

the pledged stock.

57. Letter of Probate means-(a) A letter attached with a Will containing signatures of the witnesses(b) Confirmation of Succession Certificate(c) A certificate issued by the court containing the name of the person

who has to administer the property of a deceased person(d) A certificate issued by the court containing also the name of the

Executor of a will

58. Non-registration of a firm will affect in the following manner-(a) On dissolution of the firm, remaining partners will have to

approach to the court for settlement of their dues.(b) Bank will not allow an unregistered firm to open an account.(c) No partner shall be in a position to institute a suit against any

other partner of the firm(d) None of these

59. Working Capital Gap means-(a) Total current assets minus Total current liabilities(b) total assets minus intangible assets(c) total liabilities minus terms liabilities.(d) Total current assets minus current liabilities (other than bankborrowing)

60. …………… constitute the largest source of funds for the banks



a. cashb. loan

c. depositd. agency service

61. Banker's lien is a type of security.(a) Hypothecated(b) Mortgaged

(c) Implied pledge(d) pledged

62. Section 85(1) of the Negotiable Instrument Act 1881 provides protectionto the paying banker in respect of

(a) forged endorsement(b) material alterations on the face of the cheque(c) forgery of drawer's signature(d) all of these

63. Collection of cheques for customer is a………….function of bank.(a) Agency function(b) trustee function

(c) planned function(d) deposit function

64. In periods of boom, which leads to economic instability, Reserve Bankresorts to

(a) sale in the market of first class securities in its possession toreduce the supply of money as a measure of open marketoperations

(b) buying of approved securities in the market as a measure of penmarket operations

(c) hike in the bank rate as a measure of open market operations(d) none of these

65. Under Section 17 of the Banking Regulation Act 1949, every bankingcompany incorporated in India is required to transfer each year to a reservefund a sum equivalent to not less than

(a) 10 per cent of profit before dividends;(b) 20 per cent of profit after interest tax and dividend;(c) 25 per cent of profit before dividends;(d) 5 per cent of gross profit

66. After a customer has closed the account______(a) the banker is no more liable to observe secrecy of his account

because the contractual relationship comes to an end(b) the banker is still bound by his duty of secrecy(c) the banker's duty of secrecy comes to an end in terms of the

provisions of the Negotiable Instrument Act, 1881(d) none of these

67. ………….is a new scheme of deposit mobilization have been evolved bythe Indian commercial banks.

(a) current deposit(b) saving deposit(c) insurance linked deposit(d) fixed deposit



68. A mandate may continue to be operative even in the case of—(a) death of the agent(b) lunacy of the agent

(c) insolvency of the agent(d) none of these

69. ………….is a document issued by the bank acknowledge the receipt of afixed sum of money on deposit.

(a)collection receipt(b) withdrawal receipt

(c) fixed deposit receipt(d) investment receipt

70. A bill should be presented for acceptance in case of insolvency of adrawee to

a. Official receiverb. Drawee in case of need

c. Acceptor for honour

71.An order instrument can be made payable to the bearer by makinga. Conditional endorsementb. Full endorsement

c. General endorsement

72. The endorser will not liable to the holder on dishonor of a negotiableinstrument if he makes

a. Sans-recourse endorsementb. Facultative endorsementc. Sans-frais endorsement

73. Negotiation-back impliesa. Return of the instrument back of he person who indorsed it earlierb. The endorser does not want the instrument to be indorsed back to

himc. The endorser does not want the endorsee to incur any expenses on

endorser’s account

74.Once a bearer instrument always a bearer instrument is true in case ofa. A cheque onlyb. A bill of exchange onlyc. All negotiable instruments

75. ……are treated as negotiable instrument by usage or custom of trade.a. bill of exchangeb. promissory note

c. cashd.hundies

76. The relationship between a banker and its customer is basically that ofa. A debtor and a creditorb. A trustee and the beneficiaryc. A principal and an agent

77. The banker's answer in case of dishonor of a cheque on a account ofinsufficiency of funds is generally

a. Refer to drawer (RD)b. No funds (NF)c. Not arranged for (NAF)



78. The title of the endorsee will not be better than of the endorser in case acheque is crossed containing the words

a. & cob. Not negotiable

c. Account Payee

79. Cancellation of crossing can be done bya. Holder of the chequeb. Payee of the cheque

c. Drawer of the cheque

80. Travelers cheques are issue bya. Travel agenciesb. Commercial banksc. Tourist department of government of India

81.When a banker accepts the securities for safe custody, the relationshipbetween a banker and a customer is that of

a. A debtor and a creditorb. Trustee and beneficiary

c. Principal and agent

82. A right of appropriation first lies with thea. Debtorb. Creditor

c. Court

83. The period of limitation in case of deposits with bankers from the dateon which

a. Deposit was madeb. Deposit maturesc. Date of demand for payment by the customer

84. Pay order is issued by the banks fora. Local paymentsb. Inter-state payments

c. Foreign payments

85. Certificate of Deposit cannot be issued bya. Scheduled Commercial Banksb. Regional rural Banksc. All India Financial Institution

86.The recurring deposit account combine the characteristics of ……….andfixed deposit account.

a. savings accountb. current account

c. loan account

87. The drawee banker of a demand draft has received intimation of theloss of the draft from the purchaser. The banker should

a. Stop the paymentb. Exercise cautionc. Refuse to accept the notice andd. Issue a duplicate draft

88…………..is always drawn on a specified banker.



a. bill of exchangeb. promissory note

c. investment receipt.d. cheque

89. A customer requests for issue of a bearer demand draft. The bankershould

a. Strike off the word 'order' and should put the word 'bearer' on the draftb. Request the customer to go to the Head Officec. Refuse to issue the draft

90. A and B have jointly hired a locker under "Either or Survivor" caluse.A dies. The bank should

a. Permit B to operate the lockerb. Seal the locker and open it only in the presence of B and A is legal

representativec. Permit operation by B and legal representative of A jointlyd. Not have allowed operation

91.Pay order is issued by the banks fora. local paymentsb. inter state payments

c. foreign payments

92. When a banker collects a cheque for which he has already given cash,hisposition is that of a…………

a. collecting bankb. dealer

c. agentd holder for value

93 Merchant banking includesa. Managing issue of sharesb. Opening branches in mandis or bazaarsc. Financing intermediary businessmen

94.In case of ………….days of grace are alloweda. withdrawal receiptb. bill of exchange

c. chequed. money order

95. A minor can open and operate an account in his own name if he hasatleast attained the age of

a. 12 yearsb. 16 years

c. 15 years

96. .The person appointed to operate the account after his death by thedeceased himself before his I death is called

a. Executorb. Administrator

c. Attorney

97.A joint account can be opened by the banker on receipt of applicationsigned by

a. Majority of the joint account holdersb. All joint account holdersc. Any joint account holder



98.A minor cannota. Accept a billb. Draw a bill

c. Endorse a cheque

99. A bank maintains an account in the names of A & B payable jointly. Onthe death of A, the balance in the account is payable to

a. Bb. A's legal representativec. B and A's legal representative in equal proportiond. legal representative of A&B

100 .The interest and principle amount of a loan not repaid by a customer ina bank ,the bank consider such loan as……..

a. RDb. FD

c. NPAd. TOD

101.Banks create money bya. Liberal creditb. Differential instrument

c. Accepting depositd. All or some of the above.

102.The Apex Co-operative Bank is known asa. Central Co-operative bankb. State Co-operative bank

c.RRBd. NABRD

103.Net interest income isa. Interest earned on advancesb. Interest earned on investmentc. Total interest earned on advances and investmentd. Difference between interest earned and interest paid.

104.The ……….is an important function of a bank and this functiondistinguishes banks from the non banking institution.

(A) accepting deposit(B) lending money

(C) creation of credit(D) agency service

105. ………..function are the core activities of banking.(A) agency and general utility(B) borrowing and lending(C) accepting deposit and borrow money(D) lending and bill discounting

106. Banks lend to special purpose vehicles (SPVs)in the private sectorregistered under………… for directly undertaking infrastructure projects.

(A) Reserve Bank of India(B) State Bank of India

(C) Local Courts(D) Companies Act.

107. Banks categorised housing loan ,education loan etc. as………(A) wholesale loan(B) retail loan

(C) risk loan(D personal loan



108. Banks extend need based working capital facilities as well as termloans to all NBFCs registered with………

(A) companies Act.(B) State Bank of India

(C) commercial bank(D) Reserve Bank of India

109. Investment of banks in Govt. securities and other approved securitiesis categorised as ……

(A) Lending(B) SLR-investment

(C) non-SLR investment(D) ANBC

110.Interest rate risk is a type ofa. Credit riskb. Market Risk

c. Operational Risk.d. All of the above

111.The June 1999Basel Committee on Banking Supervision issuedproposal for reform of its 1988 Capital Accord (the Basel II Proposal)Theseproposals contained mainly

a. Settlement risk managementb. Capital requirementsc. Supervisory reviewd. The handling of hedge fundse. Contingency plansf. Market discipline

(i)a,b,d(ii)b,c,d

(iii)b,c,f(iv)a,b,f

112.Which of the following is not a motive for the companies to hold casha.Transactional motiveb.Precautionary motivec.Lack of proper synchronization between cash inflows and outflowsd.capital investments.

113.VaR meansa.Value of Business at Riskb.Value at Risk

c.Volume on Riskd.Value as Risk.

114.In an inflationary trend ,the pricing of the bank products area.Decreasing trendb.Constant

c.Increasing trendd.no relevance.

115. ……….is a place where inter bank claims arising on account of chequesreceived for collection by each bank drawn against other banks are settled.

(A) investment house(B) issuehouse

(C) Bankers clearing house(D) none of these

116.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



117. Every central bank has the monopoly right of……….(A) moral suasion(B) note issue

(C) direct action(D) credit regulation

118. Open market operation is another important…………… wepon of creditcontrol.?

(A)qualitative(B) normal

(C) quantitative(D) none of the above

119. ……………… is a method of credit control adopted by the moderncentral banks?

(A) consumer credit(B) margin requirements

(C)variable reserve ratio.(D) rationing of credit,

120. The Govt.of India set up the ……….committee(1991) to examine allaspects relating to structure ,organisation and the functioning of the Indianbanking system.

(A) Narasimham(B) Malhotra

(C) Vadia(D) Smith

121. How many banks were in second phase of nationalisation?(A) 4(B) 5

(C) 6(D) 7

122. ……….is automation of banks across multiple –delivery channels.(A) ANBC(B) OBE

(C) NABARD(D) CBS

123. ……….was the first public sector bank to tap the equity market inDecember 1993

A) SBT(B) PNB

(C) SBI(D) BOI

124. Large value payment system consist of(A) ECS(B) RTGS

(C) NEFT(D) OBE

125. ………..may be defined as an exposure to a transaction with loss ,whichoccurs with some probability and which can be expected, measured andminimised.

(A) profit(B) loss

(C) risk(D) opportunity

126. What is CRR?a) Cash Reserve Ratiob) Current Ratio Ratec) Review Reportd) Credit Rating Recorde) None of these



127. ………….. banks are those banks which are incorporated outside Indiaand their head office are also situated outside India.

a) foreign exchange bankb) schedule bankc) non-scheduled bank

d) commercial banke) None of these

128. Banks have adopted asset-liability management and stress testing as atool of ……….

a) profit managementb) risk managementc) loss management

d) opportunity managemente) None of these

129. Which of the following NBFC converted itself into a commercial Bank?a) Tata Financeb) Reliance Capital Trustc) Birla Mutual

d) Kotak Mahindrae) None of these

130. Which is the current revision & year of UCPDC?a) UCPDC 500, 1993b) UCODC 400, 1993

c) UCPDC 300, 1973d) None of these

131. The rate of which discounting the bills of first class banks is done byRBI is called

a) Bank Rateb) Prime Lending Rate

c) Loan Rated) Discounting Rate

132. Banking ombudsman has been constituted under which act?a) Banking Regulation Actb) RBI Act

c) SBI Actd) COPRA

133. The major objective of ……..was to ensure financial safety, soundness,and solvency of banks

a) prudential normsb) risk normsc) profit norms

d) none of thesee) None of these

134. Gilt edged securities refer toa) Government Securitiesb) Securities issued by municipal corporationsc) Securities issued by first class companiesd) None of these

135. A unit of the Unit Trust of India is aa) Shareb) Debenturec) Negotiabld Instrumente) None of these

136. Indian Banks Association (IBA) has a common net working systemforsharing the ATM facilities in Mumbai, which is known as



a) ATM Networkb) Shared Payment Network Systemc) Cash Networkd) None of these

137. Arbitrage isa) Buying and selling in two markets simultaneouslyb) A rate of interestc) A Feed) Arbitrage is a disputee) None of these

138. E E F C denotesa) Exchange Earners Foreign Currency Accountb) Importer’s account with Bankc) Account maintained by a exporter with RBId) None of these

139. For which of the following currencies is the Indian rupee quotedagainst100 units of the foreign currency

a) Deutsche Markb) Pound

c) Japanese Yend) US Dollars

140. Exchange risk in case of foreign currency Non Resident (Banks)scheme(FCNB) is borne by

a) RBIb) Depositorc) Govt. of India

d) Concerned Banke) None of these

141. Consortium Advances refer toa) Concurrent borrowingsb) Multiple financingc) Joint Financing by more than one bankd) Financing of consignment businesse) None of these

142. NABARD refinance for financing Self Help Groups is to the extent ofa) 25%

b) 50%c) 75%

d) 100%e) None of these

143. The term Allonge refers toa) The sheets of paper used in writing a deedb) The stamps affixed on documentc) A sheet of paper attached to mortgage deed for the purpose of witnessd) A sheet of papers attached to a negotiable instrument for the purpose of

making endorsement thereof when there is no space in the instrument

144. ……………is a system of banking in which one bank carries on its businessthrough a network of branches spread all over the country.

a) chain bankingb) unit banking

c) branch bankingd) None of these



145. As the credit card gives the overdraft facilities and additional………….powerto customer.

a) lendingb) depositc) borrowing

d) creatinge) None of these

146. ………..represents short-term loans granted either to the discount housesor to other banks which are obtainable at call.

a) balance with other banksb) money at call and short noticec) bills discountedd) cash in hande) None of these

147. Banking ombudsman meansa) Person appointed to recover dues from defaulting borrowersb) A person to whom customer can approach for redress of his grievancesc) A person appointed to settle dispute between employees and

managementd) A person appointed by RBI to oversee the functioning of Foreign Bankse) None of these

148. NGO is the term associated witha) SHGb) PMRYc) SEEUY

d) Agri. Advancese) None of these

149. Full form of SLRa) Statutory Liquidity Ratiob) State Level Recovery

c) Sundry Leverage Ratiod) State Liquidity Reserve

150. C.R.A. in banking parlance stands fora) Credit Rating Associationb) Credit Rating Agency

c) Credit Risk Assessmentd) None of these

151. E.P.S. in share market stands fora) Earning per shareb) Electronic Payment Systemc) Employee Pension Scrolld) Equated Payment Systeme) None of these

152. The Securitization and Reconstruction of Financial Asset and enforce ofSecurity Interest Act came into force from

a) 21.08.02b) 21.06.02c) 21.07.02d) 21.12.02e) None of these



153. The powers of the Board of Directors to borrow from the bank arementioned in

a) Article of Associationb) Memorandum of Associationc) Special Resolution

d) A & Be) None of these

154. The currency Euro has been introduced w.e.f.a) 01.01.99b) 01.01.2000c) 01.08.99

d) 01.03.99e) None of these

155. Who is authorized to permit premature closer of PPF A/ca) RBIb) Ministry of finance Department of Economic affairsc) Chairman of concerning Bankd) None of these

156. What is USGAAP?a) United States Generally Accepted Accounting Principlesb) Union State Generous Agreement & Accounting Principlesc) United State General Allies & Army Practicesd) Union State Generous Accounts & Affairs and Practices

157. What is the average percentage of Banking transactions through non-branch route in private sector Banks

a) 50%b) 60%c) 70%


158. The C D Ratio of all schedule commercial Banks as on June 2003stood ata) 51%b) 57%c) 53%


159. The Gross NPA percentage of the following country is highest in Asiaa) Indiab) Chinac) Malaysia

d) Indonesiae) None of these

160. Credit Risk Assessment of the borrowal units is fora) Assessing the repayment capacityb) To fix the pricing of the productc) To review the units performanced) None of these

161. To be categorized as a schedule Bank the minimum capital & reserverequired is

a) Rs. 10 lacsb) Rs. 5 lacsc) Rs. 20 lacs

d) Rs. 7 lacse) None of these



162. For Business process re-engineering and IT strategy which bank hasemployed ‘Gartner

’a) BOBb) SBIc) PNB

d) BOMe) None of these

163. The objective of Government to appoint Narsimhan Committee isa) To strengthen the banking systemb) To improve customer servicec) To strengthen the credit portfoliod) None of these

164. Which Bank has recently tied up with Apollo Hospital for financing medicalfacilities

a) ICICIb) HDFCc) BOB

d) SBIe) None of these

165. The full form of RBS isa)Risk Based Supervisionb)Rating by System

c)Role Based Supervisiond)Rating Bank Security

166. ………….prescribes two tiers of capital for the banks.a)Basel-Ib) Basel-II

c) Basel-IIId) None of these

167. Pricing is equals toa)Cost of the productb)Break Even Point of the firm

c)Function of risk ratingd)All of the above

168. Under the Banking Ombudsman scheme the value of claim shouldnotexceed

a)5 lacb)10 lac

c)15 lacd)20 lac

169. Which Bank has introduced ‘Pre-paid Card’ firsta) OBCb) BOBc) Corporation Bank

d) SBIe) None of these

170. The minimum Capital Adequacy Ratio currently fixed by RBI for Banksisa) 12%b) 10%c) 9%


171. Who can fix the interest rates of NRE & FCNB deposits ?a) RBIb) Banks, as per the directive of RBIc) Govt. of Indiad) IBA



172. The following is not a housing finance intermediary agencya) HDFCb) HUDCO

c) NHBd) SIDCO

173. Who is authorised to issue coin in Indiaa) RBIb) Ministry of Finance

c) SBId) None of these

174. Bank can change interest rate without reference to its PLR in thefollowinga)Housing loansb) NRE/ FCNB deposits

c) Personal loansd)Educational loans

175. The maximum penal rate of interest that can be charged is restrictedtoa) 2 %b) 3 %c) Maximum spread announced over PLRd) 5 %

176. Banks can change rate of interest beyond spread announced by themonadvances granted to

a) Film companiesb) Chit funds

c) NBFC sd) Hotels

177. To which category of customers are banks prohibited to sanctionloansagainst shares and debentures?

a) Institutionsb) PSUs

c) Banksd) Trust and endowments

178. What should be the method of valuation for advances againstshares/debentures / bonds?

a) Face valueb) Market price

c) Book Valued) Average Value

179. Which kind of bills should not be discounted by banks as per RBIregulation?a) Customs dutyb) Installation charges

c) Sale of goodsd) Purchase of books

180. What action is taken if one of the customers tenders forged note?a) He is sent to prisonb) Note is returned with remark, forged notec) Note is impoundedd) Note is torn

181. Head quarter of ADB is situated ata) New Yorkb) Chicago

c) Manilad) Tokyo

182. Indian Companies have been allowed to invest upto US$ ---abroada) 10 millionb) 15 million

c) 5 milliond) 20 million



183. As per Basel-I ………..capital can absorb losses without a bank beingrequired to cease trading.

a)Tier-Ib) Tier-II

c) Tier-IIId) None of these

184. Which of the following definition is most correct. UCPDC 500 isa) Set of rules applicable to CC transactionsb) Set of rules having 500 articlec) Set of rules framed by ICC governing LC business globallyd) Set of universally applicable rules governing LC business in India only.

185. If market quotes USD/INR as 43.61/63 ,at what rate can you buy USD atthe given quote.

a) 43.61b) 43.62

c) 43.63d) None of the above

186. A new category of scheduled banks came into existence in 1975 as RRBsunder the ………

a) Regional Rural Banks Ordinance,1975.b) Regional Reconstruction Banks Ordinance,1975.c) Registered Rural Banks Ordinance,1975.d) none of these.

187. The three banks recently have entered in a Mega ATM sharing pact. Theyare

a) SBI, ICICI, & BOBb) SBI, ICICI, HDFCc) ICICI, Andhra Bank, HDFCd) Andhra Bank, Canara Bank, SBIe) None of these

188. NABARD is aa)Department of RBIb) Wholly owned subsidiary of RBIc) Subsidiary of SBId) None of the above

189. Devaluation of currency stands fora)Reducing the value of internal currency in terms of foreign currencyb) Increasing the value of Indian Currency in terms of foreign currencyc) Keeping the value of internal currency constant in terms of foreign

currencye) None of these

190. Pari Passu charge refers to a chargea) Ranking in priority, regardless of quantum of advancesb) Merely notional in naturec) Ranking equally in priority in proportion to the lender’s share

of advanced) None of these



191. What are the four categories as per Kapur Committee recommendations forloan applications under SSI segment

a) upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacsb) upto 10 lacs, upto 25 lacs, upto 50 lacs and above 50 lacsc) upto 2 lacs, upto 1 crores, upto 2 crores, and above 2 croresd) upto 2 crores, upto 25 crores, upto 50 crores and above 50 crorese) None of these

192.The area of operation of …………banks are maximum of three geographicallyneighbouring districts and they are allowed to open branches only in their areaof operation.

a) Local Area Banksb) Co-operative banksc) RRBd) Foreign Exchange banks

193. The banker advances money against immovable property only when theproperty is ……….to the banker.

a) loanb) mortgaged.c) pledged

d) hypothicatede) None of these

194. EXIM Bank was set up ona) January1, 1982b) January 26,1989c) March 15,1981d) March15,1982

195. Which commission recommented the foundation of RBIa) Sarkaria Commissionb) Hilton Young Commissionc) Narasimha Commissiond) None of these

196. At what frequency can Banks pay interest on Saving Bank Account asperRBI guidelines

a) Monthlyb) Quarterly

c) Half Yearlyd) Yearly

197. The VSAT communication network for banks and financialinstitutionslaunched by RBI is known as

a) SWIFTb) SBI NET

c) BANK NETd) INFINET

198. ………………..is a transaction where by money is borrowed by the debtor onthe security of the movable property.

a)hypothicationb)mortage

c)pledged)charge



199. Most modern banking systems are based onA) money of intrinsic value.B) commodity money.

C) 100 percent reservesD) fractional reserves.

200. Which bank has become the first foreign bank to open a branch inIsrael'sdiamond exchange:

a) American Express Bankb) Citibank

c) Standard Chartered Bankd) State Bank of India

201.RBI controls money market qualitatively througha.Open market operationb.Selective credit control

c.Bank rated.None of the above.

202. What was established in Kolkata on 1 st April 1935 in accordance with theprovision of an act of the same name passed in 1934?

(a)SBI(b)RBI

(c)ICICI(d)IDBI

203 What unique distinction do the General Bank of India and the Bank ofHindustan founded in and around 1786 posses in the context of Indian bankinghistory?

(a)they are not registered banks(b)they are owned by RBI(c)they are first Indian banks(d)they are nationalized banks.

204 The Imperial Bank of India was re-named on 30th April 1955 as what?(a)SBI

(b)RBI(c)ICICI(d)IDBI

205 Which bank operates on behalf of the SBI in Nigeria and was establishedin 1981?

(a)SBI(b)RBI(c)ICICI(d)INMB



ANSWER KEY

1- B 41-b 81-b 121-c2- D 42-b 82-a 122-d3- D 43-a 83-c 123-c4- A 44-d 84-a 124-b5- C 45-c 85-b 125-c6- C 46-a 86-a 126-a7- C 47-d 87-b 127-a8- B 48-d 88-d 128-b9- B 49-c 89-c 129-d10-C 50-a 90-a 130-a11-D 51-d 91-a 131-a12-B 52-a 92-d 132-b13-A 53-d 93-a 133-a14-C 54-d 94-b 134-a15-B 55-d 95-a 135-d16-A 56-a 96-b 136-b17-A 57-d 97-b 137-a18-B 58-c 98-a 138-a19-C 59-d 99-c 139-c20-B 60-c 100-c 140-d21-D 61-c 101-d 141-c22-C 62-a 102-b 142-d23-C 63-a 103-d 143-d24-a 64-a 104-c 144-c25-c 65-c 105-b 145-c26-d 66-b 106-d 146-b27-b 67-c 107-b 147-b28-b 68-c 108-d 148-a29-c 69-c 109-b 149-a30-c 70-a 110-b 150-c31-b 71-c 111-iii 151-a32-a 72-a 112-d 152-b33-d 73-a 113-b 153-b34-b 74-a 114-c 154-a35-b 75-d 115-c 155-b36-c 76-a 116-b 156-a37-c 77-a 117-b 157-c38-c 78-b 118-c 158-b39-b 79-c 119-c 159-b40-d 80-b 120-a 160-b



161-b 202-b162-a 182-a 203-c163-a 183-a 204-a164-d 184-c 205-d165-a 185-c166-a 186-a167-c 187-b168-d 188-d169-a 189-a170-c 190-c171-b 191-a172-d 192-a173-b 193-b174-b 194-a175-c 195-b176-c 196-c177-d 197-d178-b 198-a179-a 199-d180-c 200-d181-c 201-b

(c)Reserved

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