Multiple Choice Questions Set 3

1. The membership to RTGS system would be open to (A.) All licensed banks, (B.) Primary dealers, (C.) Special institutions and (D.) Clearing houses / clearing agencies.

a.  A to D. All

b.  a , B. And C. Only

c.   B. , C. And D. Only

d.  a , B. And D. Only

2. The non-bank finance companies have the following categories only (A.) Asset finance company (B.) Investment company (C.) Loan company (D.) Equipment leasing company

a.  A to D. All

b.  a , B. And C. Only

c.   B. , C. And D. Only

d.  a , B. And D. Only

3. The overdue receivables representing positive mark-to-market value of a derivative contract will be treated as a non-performing asset, if these remain unpaid for ____days or more.

a.  120 days

b.  90 days

c.   60 days

d.  30 days

4. The period for allowing pre-shipment credit to an exporter is

a.  maximum 360 days

b.  maximum 180 days

c.   discretion of banks looking into time involved for procurement, processing or manufacturing for export

d.  any of the above, whichever is lower

5. The period of pre-shipment credit is determined by banks but concessional rate of interest can be allowed maximum for a period of

a.  360 days

b.  270 days

c.   180 days

d.  90 days.

6. The proposal under CDR for SME is to be approved by the bank concerned within a period of

a.  30 days

b.  60 days

c.   90 days

d.  120 days

7. The quick assets can be calculated as

a.  current assets - stocks - prepaid expenses

b.  current assets + book debts - prepaid expenses

c.   current assets - book debts - cash

d.  book debts + cash + prepaid expenses

8. The refinance facility provided during December 2008 by RBI to the National Housing Bank (NHB) (A.) Is for loans granted to housing finance companies (B.) Is allowed at Repo rate under LAF for 90 days (C.) Is available up to Mar 2010.

a.  A to C. All

b.  B. And C. Only

c.   B. And a only

d.  A and C. Only

9. The renewal of a term deposit can be done from date of maturity itself if

a.  overdue period does not exceed 14 days on the date of receipt of such request

b.  overdue period does not exceed 15 days on the date of receipt of such request

c.   overdue period does not exceed 45 days on the date of receipt of such request

d.  no such privilege is available as there can be change in interest rates in the mean time

10. The Standing Committee on Customer Service within a bank is an executive level committee (A.) Which is headed by CMD or ED (B.) Which ensures compliance of RBI guidelines (C.) It is headed by General Manager of the bank incharge of customer service department (D.) Which reviews the practices and procedures prevalent in the bank.

a.  A and B. Only

b.  B. , C. And D. Only

c.   a , B. And D. Only

d.  A and D. Only

11. The term ‘normal transit period’ in case of export bills, stands for, the period taken

a.  to reach the goods from port of shipment to port of destination

b.  to reach the documents from exporter’s bank to importer’s bank

c.   to credit the proceeds of the bill in NOSTRO account from date of purchase/ discount

d.  to be defined by RBI from time to time

12. The validity period of agreement between banks and FI under CDR is ____ years, which can be renewed by another ___ years later on.

a.  2 years, 2 years

b.  3 years, 3 years

c.   2 years, 3 years

d.  3 years, 2 years

13. The value of a security in a loan account is 8% from the time the loan was sanctioned. The present balance is ₹10Lakh. Due to non-recovery it is placed in sub-standard category by the bank and provision at 20% is made. The auditors insist that provision should be 100% of the outstanding balance. What is the correct position

a.  the account is still a sub-standard account and provision made by the bank is correct

b.  due to security value less than 10%, the account is in loss category, hence provision should be 100%

c.   provision for ₹80000 should be 10% and for balance ₹9.20Lakh at 100%

d.  the matter requiresa clarification by RBI

14. The village industry as per PMEGP is the one where the investment per head of full time artisan or worker is restricted to

a.  ₹1.50Lakh in plain and hilly areas

b.  ₹1.00Lakh in plain and hilly areas

c.   ₹1.50Lakh in plain and ₹1Lakh in hilly areas

d.  ₹1.00Lakh in plain and ₹1.50Lakh hilly areas

15. There is short position in foreign exchange with the dealer of a bank and he wants to square the position. In this context which of the following is correct

a.  if the rates are appreciating, bank will gain

b.  if the rates are appreciating, bank will loose

c.   if the rates are declining, the bank will gain

d.  bank will gain irrespective of the fact whether the rates are declining or increasing.

16. To absorb excess liquidity in the banking system RBI undertakes which of the following

a.  Reverse Repo

b.  decrease in CRR

c.   decrease in SLR

d.  Repo

17. To ensure the safety, security and integrity of payment services the access to a the national payment system should be restricted, controlled and subject to certain minimum standards.

a.  is restricted and banned

b.  controlled and banned

c.   restricted, controlled and subjected to certain minimum standards

d.  all the above

18. To provide legal basis between banks and Financial institution, which of the following agreement is executed

a.  debtor credit agreement

b.  joint deed of hypothecation

c.   inter-creditor agreement

d.  consortium agreement

19. Two student approached your bank for sanction of an education loan for studies in Australia and Ahmedabad. The maximum amount of loan under priority sector, that can be allowed is

a.  maximum ₹10Lakh in both the cases

b.  maximum ₹20Lakh in both the cases

c.   maximum ₹10Lakh in first case and ₹20Lakh in 2nd case.

d.  maximum ₹20Lakh in first case and ₹10Lakh in 2nd case.

20. Under Basic indicator approach to provide capital for Operational Risk for capital adequacy purpose, the amount of capital charge will be

a.  15% of the operational risk weighted assets

b.  15% of the total risk weighted assets

c.   15% of the total loan assets

d.  15% of 3 years average positive profits

21. Under CDR, the promoter’s contribution should be equal to

a.  10% of project cost

b.  15% of project cost

c.   15% of creditors’ sacrifice

d.  no contribution from promoter is required since bank is dealing with a sick account

22. Under CDR-I, a reference to CDR could be triggered by (i) any or more of the creditor who have minimum 20% share in either working capital or term finance , or (ii) by the concerned corporate, if supported by a bank or financial institution having stake as in (i) above (iii) by the concerned company of its own.

a.  A to C. All

b.  A and B. Only

c.   B. And C. Only

d.  A and C. Only

23. Under gold card scheme, stand-by limit is available to exporter to meet the urgent needs at ___% of the assessed limit

a.  10%          b. 15%      c. 20%     d. 25%

24. Under gold card scheme, the in-principle sanction is available for a period of ___ years, with automatic renewal

a.  2 years

b.  3 years

c.   4 years

d.  5 years

25. Under gold card scheme, the loan application disposal period is (which is not true)

a.  fresh request - 25 days

b.  renewal - 15 days

c.   ad hoc - 10 days

d.  none of the above

26. Under PMEGP ___% of the margin money (subsidy) should go to projects in rural areas

a. 60%     b. 50%     c.40%    d. 25%

27. Under PMEGP, collateral security can be taken in which of the following cases

a.  if the project involves loan at least ₹10Lakh for business and service purpose

b.  if the project involves loan at least ₹10Lakh for industry purpose

c.   if the project involves loan at least ₹5Lakh for business, industry or service purpose

d.  if the project involves loan at least ₹5Lakh for industry alone

28. What is correct with regard to provision on standard accounts

a.  1% on housing loans above ₹20Lakh

b.  2% on commercial real estate loans, personal loans, capital market exposure

c.   0.40 on general accounts and 0.25% on SME and direct agriculture accounts

d.  0.25% on SME and all agriculture accounts

29. What is correct with regard to subsidy in the context of PMEGP scheme

a.  it will be kept as an FDR on which no interest will be paid.

b.  it will be credited to account, when the loan is paid.

c.   the amount of subsidy is restricted to 25% for projects in rural areas

d.  the amount is restricted to 10% for projects in urban areas

30. Service charges can be recovered by banks for inward transactions out of the following

a.  RTGS/NEFT

b.  NEFT/ECS

c.   ECS/RTGS

d.  None of the above

31. What is special feature of a not negotiable crossing of a cheque

a.  further transfer is possible

b.  further transfer is not possible

c.   further transfer is allowed with defect free title

d.  further transfer not available but defect free title is available.

32. What is the amount of provision as on 31.03.2020, in case of a loan turned Doubtful on 26.02.18. The o/s balance in the account is ₹9Lakh and the value of security is ₹4Lakh and CGF guarantee cover is 60%

a.  ₹9Lakh

b.  ₹3.20Lakh

c.   ₹2.60Lakh

d.  ₹3.50Lakh

33. What is the maximum amount of deposit, that can be taken by the bank for locker facilities

a.  discretion of the bank

b.  ₹2000

c.   2 years advance locker rent

d.  3 years advance locker rent and other charges

34. What is the maximum amount of Indian currency that can be exported under general permission.

a.  ₹50000 in a financial year

b.  ₹20000 in a calendar year

c.   ₹10000 per country

d.  ₹25000  w.e.f 14th June 2014

35. What is the maximum period of post-shipment credit allowed against purchase of demand bills

a.  at the discretion of the bank

b.  at the discretion of the exporter

c.   as per normal transit period (NTP) fixed by FEDAI

d.  as per period fixed by RBI

36. What is the maximum period of post shipment credit allowed against discount of usance foreign bills

a.  at the discretion of the bank

b.  at the discretion of the exporter

c.   as per NTP fixed by FEDAI

d.  365 days including NTP and grace period if any

37. What is the normal minimum time period for which banking services are to be rendered on a particular day (A.) On a normal day 4 hours (B.) On Saturday 2 hours (C.) For extension counters  discretion of the bank (D.) Discretion of bank in all cases

a.  a , B. And C. Correct

b.  a , B. And D. Correct

c.   C. And D. Correct

d.  only D. Correct

38. What is the time limit for which records are to be preserved under Right to Information Act

a.  there is no such time period

b.  10 years

c.   5 to 8 years

d.  20 years

39. When a bank sanctions pre-shipment credit limit to an exporter, the time limit of maximum 270 days, relates to which of the following

a.  max period for concessional rate of interest

b.  max period for pre-shipment credit

c.   max period for pre-shipment and post-shipment credit

d.  max period for shipment

40. When RBI offers liquidity adjustment facility to banks this leads to (A.) Improvement in the liquidity position of banks (B.) Increase in their capacity to lend (C.) Increase in their deposits (D.) Improvement in income of banks by more lending

a.  A to D. All

b.  a , B. And C.

c.   a , B. And D.

d.  B. , C. And D.

41. When Repo rate is increased by RBI, it leads to

a.  reduction of cost to borrowers on loans from banks

b.  increase in cost of loans to borrowers from banks

c.   reduction in cost of borrowing by banks from RBI

d.  increase in cost of borrowing by banks from RBI

42. The standing liquidity facilities provided to banks (export credit refinance) and PDs from the Reserve Bank to be available at

a.  Bank Rate

b.  Reverse Repo Rate

c.   Repo Rate

d.  Transaction wise as decided by RBI

43.  Aboout Positive Pay System for Cheque Truncation System (CTS) which shall be implemented w.e.f.1^stJan 2021, which statement is correct.

a.    The concept of Positive Pay involves a process of reconfirming key details of large value cheques.

b.    Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the drawee bank,

c.     For amount of Rs. 50,000 and above.

d.    All of the above

44. When a cheque is presented bearing a date as per National Calendar (Saka Samvat)

a.  the cheque will be paid if the date can be ascertained as per English calendar

b.  the cheque will not be paid if the date cannot be ascertained as per English calendar

c.   the date will be ascertained as per Gregorian Calendar to ensure that the cheque has not become stale and cheque will be paid if otherwise in order

d.  discretion of the bank to take a decision in such cases

45. When a term deposit is to be renewed by the bank, which of the following is not correct

a.  if overdue period is less than 14 days, it can be renewed from date of maturity

b.  if overdue period is more than 14 days, overdue period interest will be kept in separate interest free sub-account and shall be paid at the time of release of origin al fixed deposit receipt.

c.   if overdue period is more than 14 days, overdue period interest will be added to the amount of principal and shall be paid at the time of release of origin al fixed deposit receipt.

d.  discretion of the bank

46. Where a guarantor makes payment of bank loan, all securities are required to be transferred by bank to the guarantor, under which of the following

a.  right of redemption

b.  right of foreclosure

c.   right of subrogation

d.  right of appropriation

47. Where an export bill has become due and has not been paid, what interest rate will be charged

a.  bank rate + 5% up to 270 days

b.  BPLR + 2.5% up to 180 days

c.   BPLR + 2.5% up to 180 days

d.  Repo Rate + 2.5% up to 180 days

48. Where exporter is not able to realize the proceeds of shipment within prescribed period for reasons beyond his control, the AD Category 1 can allow extension up to ____. If permission is required from RBI it is to be sought by exporter through AD on form No.___

a.  3 months, ETN

b.  6 months, ETN

c.   6 month, ETX

d. 12 months, ETN

49. Where exports are for the purpose of exhibition or trade fair, the export proceeds can be deposited outside India in a bank account, subject to the condition that these are repatriated to India within ____ from date of closure of the trade fair

a.  15 days

b.  one month

c.   3 months

d.  6 months

50. Where goods have been exported for exhibition and remain unsold these can be sold at a discount by an exporter up to

a.  USD 5000 per exporter, for all exhibition / trade fairs in a Financial year

b.  USD 10000 per exporter, per exhibition / trade fair

c.   USD 5000 per exporter, per exhibition / trade fair

d.  USD 10000 per exporter, for all exhibition / trade fairs in a financial year

51. Where pre-shipment credit exceeding the value of actual export is allowed, that portion is required to be adjusted by the exporter in cash or by sale of residual by-product within a period of ___ from date of advance

a.  30 days

b.  45 days

c.   60 days

d.  90 days

52. Where the exporters fail to realize the export proceeds within prescribed period or request for extension beyond the prescribed period

a.  Regional Office of RBI is to be informed about this, with reasons

b.  Duplicate copy of GR form to be retained by the AD till realisation

c.   AD to follow up with the exporter and any laxity is viewed seriously by RBI

d.  all the above

53. Where the FCNR(B) account carries floating rate, the re-set period is

a.  3 months

b.  6 months

c.   9 months

d.  12 months

54. Where the goods are exported for reimport purpose, such as for repair / testing etc. The bill of entry form is to be submitted within _____ month/s of the re-import.

a.  1 month

b.  2 months

c.   3 months

d.  6 months

55. Where the practice of trade is such that some amount of the exported goods cannot be invoiced immediately due to checking of the weight, quantity etc. By the buyer, maximum how much value can be left undrawan ____

a.  5% of the full export value

b.  10% of the full export value

c.   15% of the full export value

d.  20% of the full export value

56. Where there is delay in collection bills by a collecting bank, it will compensate the lodger of the bills

a.  at 2% rate of interest above the bank rate

b.  at 2% rate of interest above the saving bank rate

c.   at 2% rate of interest above the term deposit rate

d.  at term deposit rate for corresponding maturity

57. In a negotiated bill, if invoice value is to be reduced for genuine reasons, by the exporter, he can be allowed to reduce the value by ___%

a. 5%    b.10%    c.20%     d.25%

58. Where a person has lost his both hands and is unable to put his thumb impression or his signature, he can

a.  put any mark of his body as per IBA guidelines and a Supreme Court judgement to obtain the payment

b.  give oral authority to another person as per IBA guidelines and a Supreme Court judgement to obtain the payment

c.   give oral authority to any person as per Supreme Court judgement

d.  any of the above

59. Where a term deposit of a customer is frozen by Govt. And it has fallen due

a.  it can be renewed on the request of customer and the Govt. Only

b.  it can be renewed on the request of the customer and information will be sent to Govt. Deptt under intimation to customer by issuing a new receipt.

c.   it can be renewed on the request of the customer and information will be sent to Govt. Deptt under intimation to customer without issuing a new receipt.

d.  at the discretion of the bank.

60. Which among the following is correct in connection with branch level customer committee (A.) It include the branch staff members (B.) It includes customers (C.) It includes senior citizens (D.) It meets once in a month

a.  A to D. All

b.  a , B. And C. Only

c.   A and B. Only

d.  only a

61. Which among the following is correct in the context of requirement of submission of a photograph

a.  a pardanashin lady need not submit photograph

b.  persons who are operating the account as agents is not required

c.   instead of origin al photographs, the copies of driving licence/pass port containing photograph is suffice

d.  banks are to obtain 2 copies of the photographs

62. Which among the following is part of the National Payment System in India

a.  RTGS & SWIFT

b.  RTGS & NEFT

c.   NEFT & SWIFT

d.  All the above

63. Which among the following types of accounts are eligible under CDR for SME A. ) All non-corporate smes irrespective of the level of dues to banks B. ) All corporate smes, enjoying banking facilities froma single bank, irrespective of the level of dues to the bank C. ) All corporate smes, which have funded and non-funded outstanding up to ₹10 crore under multiple/ consortium banking arrangement

a.  A and B. Only

b.  B. And C. Only

c.   A and C. Only

d.  A to C. All

64. Which companies cannot issue Foreign currency exchangeable bonds (A.) Only A. Company that not eligible to raise funds from Indian capital market (B.) Only A. Company which is restricted by SEBI to access the capital market (C.)A company which has not raised the funds abroad so far

a.  A and B. Only

b.  B. And C. Only

c.   A and C. Only

d.  A to C. All

65. Which group of risk is taken care of by Real Time Gross Settlement.

a.  settlement risk and liquidity risk

b.  systemic risk and liquidity risk

c.   settlement risk and systemic risk

d.  liquidity and market risk

66. Which of the following a most appropriate representation of tangible net worth

a.  capital + intangible assets

b.  capital + reserves + long term loans + intangible assets

c.   capital + reserves + fictitious assets

d.  capital + reserves + intangible assets - fictitious assets

67. Which of the following about mobile banking services is correct (A.) Only CBS enabled banks can offer the services (B.) Banks are required to file STR with FIU-India (C.) Banks are required to file CTR with FIU-India.

a.  a , B. And C. All

b.  B. And C. Only

c.   A and B. Only

d.  A and C. Only

68. Which of the following can allow loans to PMEGP (A.) All public sector banks (B.) All RRBs (C.) All private banks and cooperative banks (D.) SIDBI

a.  A to D. All

b.  a , B. And D. Only

c.   B. , C. And D. Only

d.  a , C. And D. Only

69. Which of the following cannot be a nominee

a.  a non-resident person

b.  an old person aged above 100 years

c.   a minor below 10 years of age

d.  a Hindu undivided family

70. Which of the following cannot be allowed loan under PMEGP

a.  individuals and SHG

b.  institutions registered under Societies Act

c.   Charitable Trusts and Production Coop Societies

d.  Companies and partnership firms

71. Which of the following facility cannot be allowed to a visually challenged (blind) bank customer, because higher degree of risk exists in such transaction

a.  issue of cheque book and ATM facility

b.  allotment of locker or net banking facility

c.   credit card, retail loan

d.  none of the above

72. Which of the following guidelines are not applicable on Mobile Banking services

a.  KYC guidelines

b.  anti-money laundering guidelines

c.   combating terrorism fin ancing guidelines

d.  none of the above

73. Which of the following is correct in respect of project cost in PMEGP

a.  for manufacturing unit ₹25Lakh and for service/business units ₹10Lakh

b.  for manufacturing unit ₹15Lakh and for service/business units ₹10Lakh

c.   for manufacturing unit ₹25Lakh and for service/business units ₹15Lakh

d.  for manufacturing unit ₹25Lakh and for service/business units ₹25Lakh

74. Which of the following is correct regarding the Margin Money (Subsidy)

a.  banks will claim subsidy on the basis of cost of project approved in the sanction

b.  if the actual capital expenditure is lower, the subsidy will be reduced on pro-rata basis

c.   if availment of working capital limit is not as per prescribed levels, the prorata subsidy will be returned to KVIC.

d.  full amount of subsidy is available in all cases, if the project is run successfully

75. Which of the following is correct with regard to eligibility criteria for PMEGP

a.  age of individual should be between 18 -35 years

b.  there is no income ceiling criteria

c.   assistance is available to new as well as old unit

d.  minimum education is 8th pass for if the cost of project is above ₹10Lakh for all units.

76. Which of the following is eligible for special treatment for subsidy etc. In PMEGP (A.) SC/ST and OBC (B.) Minority (C.) Women (D.) North Eastern Region (e) economically weaker persons.

a.  a to e all

b.  A to D. Only

c.   B. To e only

d.  A to C. Only

77. Which of the following is non-current asset for a manufacturing firm

a.  investment in firms, cash, book-debt old than 6 months

b.  investment in unquoted shares, equipment used in business, long term security deposit

c.   investment in long term govt. Security, loans to sister firms, un-usable stocks

d.  3 months old book debts, 6 months old stocks, investment in shares listed on stock exchange

78. Which of the following is not correct regarding the margin money (subsidy)

a.  it will be kept by the bank in the form of a non-interest TDR for 3 year

b.  non-interest loan equal to amount of subsidy to be allowed as additional loan

c.   subsidy to be credited to customers account at the end of 3 year from date of first disbursement

d.  if the loan becomes NPA, the amount subsidy can be used at the end of 3 years only.

79. Which of the following is not correct regarding Training for availing loan under PMEGP

a.  it is pre-condition for availing the loan and ifa person has already obtained such training, he has to under go the training afresh

b.  its duration can be 2-3 weeks

c.   projects will be declared ineligible if at least 2 weeks EDP is not completed

d.  training cost per beneficiary is restricted to ₹2500 to ₹4000.

80. Which of the following is not correct with reference to obtaining photograph in deposit accounts

a.  in case of saving bank or current account, photographs of all persons operating the account are to be obtained.

b.  in case of term deposits, photographs of all accounts holders are to be obtained.

c.   in case of account in the name of minor, photograph of guardian to be obtained

d.  one set of photographs should be obtained for each deposit account separately

81. Which of the following is not correct with regard to projects in PMEGP

a.  project cost includes capital expenditure and one cycle of working capital.

b.  projects without capital expenditure not eligible

c.   projects costing above ₹5Lakh not requiring working capital need permission Regional Office of the bank.

d.  cost of land to be included to the extent of 20% of the total project cost.

82. Which of the following is not included in the category of pre-paid instruments (A.) Smart card (B.) Magnetic stripe card (C.) Internet accounts or internet wallet or internet purse (D.) Mobile accounts or mobile wallet or mobile purse.

a.  B. And C.

b.  A and D.

c.   B., C. And D.

d.  none of the above

83. Which of the following is part of long term use of funds of a firm

a.  purchase of vehicle, investment in other firms, bank fixed deposit with 2-year maturity

b.  long term security deposit, goodwill, purchase of land and building

c.   construction of building, investment in bonds, pre-paid expenses

d.  pre-operative expenses, preliminary expenses, outstanding expenses

84. Which of the following loan accounts, is eligible under CDR scheme

a.  loan of ₹15 cr availed bya large company from Bank-A.

b.  loan of ₹3 cr availed by a medium enterprise from Bank - B.

c.   loan of ₹9 cr availed bya company from bank C. And Bank D.

d.  all the above

85. Which of the following loan application in priority sector can be rejected by the branch manager

a.  artisan, SGSY, education loan to ST borrower

b.  crop loan, MSE loan to SC, DRI loan

c.   DRI, SGSY, SRMS

d.  Minority, SC/ST, DRI

86. Which of the following loans will not be classified as indirect agriculture advance

a.  Limit of ₹30Lakh to a dealer of fertilisers

b.  Loan for construction of a storage godown in urban areas

c.   overdraft of ₹25000 in a rural area againsta No-frill account

d.  loan of ₹750Lakh to a company, for preharvest activities

87. Which of the following statement is not correct

a.  Net worth minus intangible = Tangible net worth

b.  net worth + long term liabilities = long term sources

c.   long term liabilities + current liabilities = total liabilities

d.  current liabilities = short term sources

88. Which of the following statement regarding Prime Minister’s Employment Generation Program (PMEGP) is not correct

a.  scheme is administered by Ministry of MSE, Govt. Of India

b.  at national level, the scheme is to be implemented by KVIC

c.   at State level, it will be implemented by State Govt. Department of Industry and commercial banks

d.  at State level it will be implemented by KVIC Boards, Distt. Industries centres and commercial banks only

89. Which of the following types of loan account can be taken up bya bank for restructuring

a.  fraud account

b.  malfeasance account

c.   willful defaulter’s account which bank has reconsidered

d.  none of the above

90. Which of the following types of services / transactions are allowed under Mobile Banking

a.  Indian rupee domestic services

b.  cross border outward transfers

c.   cross border inward transfers

d.  all the above

91. Which Pillar description for Basel II pillar does not match in the following

a.  market discipline: Pillar 1

b.  supervisory review: Pillar 3

c.   minimum capital standard: Pillar 2

d.  all the above

92. While sanctioning/renewing credit limits to borrowers enjoying working capital limits of _____ and above from the banking system, banks are advised to fix separate sub-limits, within the overall limits, specifically for meeting payment obligations in respect of purchases from ssis either on cash basis or on bill basis.

a.  ₹1 cr

b.  ₹5 cr

c.   ₹10 cr

d.  ₹20 cr

93. With effect from close of business in India as on September 16, 2008, the ceiling interest rates on Non-Resident (External) Rupee (NRE) Term Deposits can be

a.  equal to LIBOR / Swap rate

b.  LIBOR/Swap + 1%

c.   LIBOR/SWAP + 50 basis points

d.  LIBOR/SWAP + 100 basis points

94. A bank has made investment in the 8% fixed interest rate govt. Bonds with a maturity of 5 year The current interest rate in the market is prevailing around 9.5%. What will be the effect on the market value of the bonds.

a.  The market value will decline and will be below the face value

b.  the market value will increase and will be above the face value

c.   the market value will not change

d.  market value is affected by the market sentiment and not the interest rate as interest rate is already fixed.

95. A bank wants to sell its NPA loan to another bank. Which of the following can be sold as on April 01, 2015

a.  loan that had become out of order on Jan 10, 2013

b.  loan that had become sub-standard on May 12, 2013

c.   loan that had become doubtful on April 10, 2014.

d.  none of the above

Note: A non­performing asset in the books of a bank shall be eligible for sale to other banks only if it has remained a non­performing asset for at least two years in the books of the selling bank.

96. A banking system in which the banks undertake banking business by offering high risk, medium risk and low risk products is called

a.  door-step banking

b.  universal banking

c.   narrow banking

d.  international banking

97. A bill dated 12.06.14, presented on 14.06.14 and accepted on 16.06.14, is payable 2 month after date. Its due date shall be

a.  August 14, 2014

b.  August 15, 2014

c.   August 16, 2014

d.  August 19, 2014

98. A chartered accountant has two current accounts (A) one for office and (B) one for his clients. He is having another account jointly with his wife in addition to an account in the name of his minor daughter under his guardianship.a garnishee order is received. It will be applicable on

a.  office account, joint account

b.  office account

c.   office account, account under guardianship

d.  office account, client account, joint account

99. A contract is entered between an exporter and importer to exchange foreign currency flows. This is known as

a.  arbitrage

b.  swap

c.   forward contract

d.  futures

100. The foreign banks having shortfall in lending to stipulated priority sector lending target/sub-targets will be required to contribute to

a.  Funds to be set up with Small Industries Development Bank of India (SIDBI) or with other Financial Institutions

b.  Micro and Small Industries Development Fund

c.   rural infrastructure development fund

d.  there is no requirement for shortfall in weaker section target