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Multiple Choice Questions
Banking & Finance
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Sr. No
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Question
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Answer
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1
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What is CRR?
a)
Cash
Reserve Ratio
b)
Current
Ratio Rate
c)
Review
Report
d)
Credit
Rating Record
e)
None of
these
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a
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2
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Interest rates? being charged by Banks in India has
shown ------- trend in recent year.
a)
Falling
b)
Rising
c)
Stable
d)
Volatile
e)
None of
these
|
a
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3
|
The first development financial institution in India
that has got merged with a bank is
a)
IDBI
b)
ICICI
c)
IDFC
d)
UTI
e)
None of
these
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b
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4
|
Who is the chairman of Pension Fund Committee?
a)
S.A. Dave
b)
A.N.
Joshi
c)
C.
Ramarajan
d)
C.N.
Bhattacharya
e)
None of
these
|
a
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5
|
Which of the following NBFC converted itself into a
commercial Bank?
a)
Tata
Finance
b)
Reliance
Capital Trust
c)
Birla Mutual
d)
Kotak
Mahindra
e)
None of
these
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d
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6
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Which is the current revision & year of UCPDC?
a)
UCPDC
500, 1993
b)
UCODC
400, 1993
c)
UCPDC
300, 1973
d)
None of
these
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a
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7
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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
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a
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8
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Banking ombudsman has been constituted under which act?
a)
Banking
Regulation Act
b)
RBI Act
c)
SBI Act
d)
COPRA
|
a
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9
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Which finance company has been given banking
licence by RBI
recently
a)
Kotak
Mahindra
b)
Ashok
Leyland & Finance
c)
TVS
Finance
d)
Tata
Finance
e)
None of
these
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a
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10
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Gilt edged securities refer to
a)
Government
Securities
b)
Securities
issued by municipal corporations
c)
Securities
issued by first class companies
d)
None of
these
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c
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11
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A unit of the Unit Trust of India is a
a)
Share
b)
Debenture
c)
Negotiable
Instrument
d)
None of
these
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d
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12
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Indian Banks Association (IBA) has a common net working
system for sharing the ATM facilities in Mumbai, which is known as
a)
ATM
Network
b)
Shared
Payment Network System
c)
Cash
Network
d)
None of
these
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b
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13
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The present rate of SLR & CRR are
a)
15%, 5%
b)
25%, 5.5%
c)
25%, 4.5%
d)
30%, 6%
e)
None of
these
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c
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15
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Arbitrage is
a)
Buying
and selling in two markets simultaneously
b)
A rate of
interest
c)
A Fee
d)
Arbitrage
is a dispute
e)
None of
these
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a
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16
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The Basic Travelling quota for going abroad is
a)
USD
10,000
b)
USD 5,000
c)
USD
20,000
d)
USD
15,000/-
e)
No
ceiling
|
a
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17
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E E F C denotes
a)
Exchange
Earners Foreign Currency Account
b)
Importer?s
account with Bank
c)
Account
maintained by a exporter with RBI
d)
None of
these
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a
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18
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For which of the following currencies is the Indian
rupee quoted against 100 units of the foreign currency
a)
Deutsche
Mark
b)
Pound
c)
Japanese
Yen
d)
US
Dollars
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c
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19
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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
e)
None of
these
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d
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20
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Which of these is not a credit rating agency?
a)
Moody?s
b)
Standard
& Poor?s
c)
Price
water house
d)
ICRA
e)
None of
these
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c
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22
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Consortium Advances refer to
a)
Concurrent
borrowings
b)
Multiple
financing
c)
Joint
Financing by more than one bank
d)
Financing
of consignment business
e)
None of
these
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c
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23
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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
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c
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24
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NABARD refinance for financing Self Help Groups is to
the extent of
a)
25%
b)
50%
c)
75%
d)
100%
e)
None of
these
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d
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25
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The term ?Allonge? refers to
a) The sheets of paper used in writing a deed
e)
The
stamps affixed on document
f)
A sheet
of paper attached to mortgage deed for the
Purpose of witness
d) A sheet of papers attached to a negotiable instrument
for the purpose of making endorsement thereof when there is no space
in the instrument
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d
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26
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The provision of Consumer Protection Act, 1986 are
applicable to the services rendered by the Banks
a)
To the
customers of the bank only
b)
To the
customers and the users of services irrespective of against consideration or
free services
c)
To the
customers and any user of Bank?s services against consideration
d)
None of
these
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c
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27
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As per section 16 of the Banking Regulation Act, 1949 a
person can be appointed as a director of how many banking companies
a)
Three
b)
Two
c)
One
d)
Four
e)
None of
these
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c
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28
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Nayak Committee Recommendations are applicable for
sanction of Fund Based Working Capital Limit upto
a)
Rs.25
lacs
b)
Rs.1
crores
c)
Rs. 2
crores
d)
Rs. 5
crores
e)
None of
these
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d
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29
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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, and above 2 crores
d)
upto 2
crores, upto 25 crores, upto 50 crores and above 50 crores
e)
None of
these
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a
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30
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The code of Fair Banking Practice ?Towards Excellence?
and general terms and conditions of service came into effect from
a)
01.07.97
b)
01.08.97
c)
01.10.97
d)
None of
these
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c
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31
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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
appointed to settle dispute between employees and management
d)
A person
appointed by RBI to oversee the functioning of Foreign Banks
e)
None of
these
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b
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33
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NGO is the term associated with
a)
SHG
b)
PMRY
c)
SEEUY
d)
Agri.
Advances
e)
None of
these
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a
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34
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Member of ?Credit Information Bureau of India Ltd.? Are
a)
SBI,
HDFC, Dun & Bradsheet, Trans Union
b)
ICICI,
UTI, SBI, Trans Union
c)
PNB, SBI,
HDFC, Dun & Bradsheet
d)
HDFC,
PNB, Dun & Brandsheet, Trans union
e)
None of
these
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a
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35
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Full form of SLR
a)
Statutory
Liquidity Ratio
b)
State
Level Recovery
c)
Sundry
Leverage Ratio
d)
State
Liquity Reserve
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a
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36
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C.R.A. is banking parlance stands for
a)
Credit
Rating Association
b)
Credit
Rating Agency
c)
Credit
Risk Assessment
d)
None of
these
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c
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37
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E.P.S. in share market stands for
a)
Earning
per share
b)
Electronic
Payment System
c)
Employee
Pension Scroll
d)
Equated
Payment System
e)
None of
these
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a
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38
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Who is the Governor of RBI
a)
Bimal
Jalan
b)
Y V Reddy
c)
K J
Udeshi
d)
Ranga
Reddy
e)
None of
these
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b
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39
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The Securitisation 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
e)
None of
these
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b
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40
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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
e)
None of
these
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b
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41
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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
e)
None of
these
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a
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43
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Which Bank is ranked 7th India Company in the ET 2003 for
listing as per market capitalization?
a) ICICI
b) HDFC
c) SBI
d) BOB
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c
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44
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Who is authorised 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
|
b
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45
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Which Bank has introduced ?Pre-paid Card? first
a)
OBC
b)
BOB
c)
Corporation
Bank
d)
SBI
e)
None of
these
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a
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46
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What is USGAAP
a) United States Generally Accepted Accounting
Principles
b) Union State Generous Agreement & Accounting
Principles
c) United State General Allies & Army Practices
e)
Union
State Generous Accounts & Affairs and Practices
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a
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47
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For Business process re-engineering and IT strategy
which bank has employed ?Gartner?
a)
BOB
b)
SBI
c)
PNB
d)
BOM
e)
None of
these
|
a
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48
|
What is the average percentage of Banking
transactions through non-
branch route in private sector Banks
a)
50%
b)
60%
c)
70%
d)
65%
e)
None of
these
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c
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50
|
The C D Ratio of all schedule commercial Banks as on
June 2003 stood at
a)
51%
b)
57%
c)
53%
d)
65%
e)
None of
these
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b
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51
|
Recently ICICI issued winding up notice to the following
financial institutions
a)
IDBI
b)
MSFC
c)
IFCI
d)
SICOM
e)
None of
these
|
c
|
|
52
|
The Gross NPA percentage of the following country is
highest in Asia
a)
India
b)
China
c)
Malaysia
d)
Indonesia
e)
None of
these
|
b
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53
|
The gross amount of NPA of Public Sector Banks as on
31.03.03 is
a)
Rs.82,071
crores
b)
Rs.
54,086 crores
c)
Rs.
58,067 crores
d)
Rs.
46,738 crores
e)
None of
these
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b
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54
|
How many foreign Banks are operating in India
a)
30
b)
25
c)
20
d)
35
e)
None of
these
|
c
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55
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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
e)
None of
these
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b
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56
|
NRE deposit rates have been recently lowered to
a)
LIBOR +
.25
b)
LIBOR +
.20
c)
LIBOR +
.30
d)
LIBOR +
.50
|
a
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57
|
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
|
a
|
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58
|
Which Bank has recently tied up with Apollo Hospital for
financing medical facilities
a)
ICICI
b)
HDFC
c)
BOB
d)
SBI
e)
None of
these
|
d
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59
|
The three banks recently have entered in a Mega ATM
sharing pact. They are
a)
SBI,
ICICI, & BOB
b)
SBI,
ICICI, HDFC
c)
ICICI,
Andhra Bank, HDFC
d)
Andhra
Bank, Canara Bank, SBI
e)
None of
these
|
b
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60
|
Who is authorised to issue coin in India
a)
RBI
b)
Ministry
of Finance
c)
SBI
d)
None of
these
|
b
|
|
61
|
The minimum Capital Adequacy Ratio currently fixed by
RBI for Banks is
a)
12%
b)
10%
c)
9%
d)
11%
e)
None of
these
|
c
|
|
62
|
The full form of RBS is
a)Risk Based Supervision
b)Rating by System
c)Role Based Supervision
d)Rating Bank Security
|
a
|
|
63
|
RBI has recently permitted which Bank to participate in
the Government Securities Repo Market
a)SBI
b)UTI
c)ICICI
d)PNB
|
b
|
|
64
|
Second Basle Accord is proposed to be implemented in the
year
a)2005
b)2003
c)2004
d)2006
|
a
|
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65
|
The ceiling for Bank?s daily borrowings in Call Money
should not exceed---% of owned funds
a)100%
b)50%
c)75%
d)150%
|
a
|
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66
|
The fiscal deficit in 2001-2002 was ---% of GDP
a)5.1%
b)5.3%
c)5.5%
d)5.4%
|
d
|
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67
|
Indian Companies have been allowed to invest upto US$
---abroad
a)10 million
b)15 million
c)5 million
d)20 million
|
a
|
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68
|
Under the Banking Ombudsman scheme the value of claim
should not exceed
a)5 lac
b)10 lac
c)15 lac
d)20 lac
|
d
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69
|
At what frequency can Banks pay interest on Saving Bank
Account as per RBI guidelines
a)Monthly
b)Quarterly
c)Half ? Yearly
d)Yearly
|
c
|
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71
|
Who
can fix the interest rates of NRE
& FCNB deposits ?
a)
RBI
b) Banks,
as per the directive of RBI
c) Govt.
of India
e) IBA
|
b
|
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72
|
The
following is not a housing finance intermediary agency
a)
HDFC
b)
HUDCO
c)
NHB
e) SICOM
|
d
|
|
73
|
Bank can
change interest rate without reference to its PLR in the following
a)Housing
loans
b) NRE/
FCNB deposits
c)
Personal loans
d)Educational
loans
|
b
|
|
74
|
The
maximum penal rate of interest that can be charged is restricted to
a)
2
%
b)
3
%
c)
Maximum
spread announced over PLR
d)
5 %
|
c
|
|
75
|
Banks can
change rate of interest beyond spread announced by them on advances granted
to
a) Film companies
b) Chit funds
c) NBFC s
d) Hotels
|
c
|
|
76
|
To which
category of customers are banks prohibited to sanction loans against shares
and debentures ?
a) Institutions
b) PSUs
c) Banks
d) Trust and endowments
|
d
|
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77
|
Which
kind of bills should not be discounted by banks as per RBI regulation ?
a)
Customs
duty
b)
Installation
charges
c)
Sale
of goods
d)
Purchase
of books
|
a
|
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78
|
What
should be the method of valuation for advances against shares/debentures / bonds ?
a) Face value
b) Market price
c) Book Value
d) Average Value
|
b
|
|
79
|
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 impounded
d) Note is torn
|
c
|
|
80.
|
A contract
of insurance is a contract of
a) Indemnity
b) Pledge
c) Guarantee
d) Hypothecation
|
a
|
|
81.
|
Restriction
on number of partners in a firm is imposed by
a) Indian Companies Act 1956
b) Indian Partnership Act 1932
c) Indian Contract Act 1872
d) None of these
|
b
|
|
82.
|
The
certificate to commence business is to be called for perusal and returned for
opening of an account of
a) Public limited company
b) Club and association
c) Private limited company
d) Trust
|
a
|
|
83
|
Which of
the following is not a measure of the profitability of the branch?
a) GRR
b) Expenses
ratio
c) Business per
employee
d) Net profit per
Employee
|
c
|
|
84
|
Where is
the headquarters of SWIFT ?
a) Hong Kong
b) Brussels
c) London
d) Mumbai
|
b
|
|
85
|
The VSAT
communication network for banks and financial institutions launched by RBI is
known as
a) SWIFT
b) SBI NET
c) BANK NET
d) INFINET
|
d
|
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