1. The term SWIFT stands for which of the following A. Society for world-over international financial transfers B. Society for world-wide interbank financial transfers C. Society for world-wide interbank financial telecommunication D. Society for worst international financial terrorism
2. The term WWW is used for which of the following A. World wide web B. World wise web C. Web world wide D. Wide world web
3. The term `special purpose vehicle is used in which of the following contexts A. Factoring of receivables B. Forfaiting of export receivables C. Venture capital funding D. Securitisation of receivables
4. There are certain financial instruments whose prices are derived from the price of the underlying currency or interest rate or stocks etc. These are known as A. Derivatives B. Securitisation C. Leasing D. Factoring
5. To work out productivity of your branch you need the data relating to business per employee. It comprises of. A. All types of business being done by the bank branches B. Deposits of the branch C. Deposits and advances D. Advances of the branch
6. Under a crop loan, the farmers are generally allowed a time period of ___ months after harvest of the crop, for marketing of the produce and repay the dues of the bank. A. 6 months B. 5 months C. 4 months D. 2 months
7. Global Bank is approached by one of their existing customers to retire an import bill received by the bank for collection from a foreign seller, the due date of which is falling shortly. Which of the following rates, the bank will apply for this transaction A. Bills selling rate B. Forward sale contract rate if it is already booked C. Bill buying rate D. A and b above
8. What is an Indian Depository Receipt A. A depository account with any of Depositories in India B. A deposit account with a public sector bank C. An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company D. An instrument in the form of deposit receipt issued by Indian depositories
9. Indirect finance to the micro and small (manufacturing as well as service) enterprises sector will not include credit to A. Persons involved in assisting the decentralised sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries. B. Loans granted by banks to nbfcs for on-lending to micro and small enterprises (manufacturing as well as service). C. Loans granted to KVIC D. All of these
10. Initially no target was fixed for Priority Sector. In November ________ the banks were advised to raise the share of these sectors in their aggregate advances to the level of 33 1/3 per cent by March 1979. A. 1972 B. 1974 C. 1976 D. 1978
11. What is the maximum ceiling on Foreign Direct Investment (FDI) for investment in the equity of public sector banks in India A. 20% B. 25% C. 40% D. 49% ANSWER: 20%
12. What is the name for the system which uses electronic means to collect payments from customers made by the credit/debit card holders and installed at retailer A. ATM B. POS C. CBT D. CIP
13. What is the no. Of members of a self help group for financing under SGSY scheme A. Normally 10-20 B. For disabled 5-20 C. For hilly terrains 5-20 D. All the above
14. What is the period for which deposit can be accepted under the scheme Foreign Currency Non-Resident B A. Minimum 6 months and maximum 12 months B. Minimum 6 months and maximum 36 months C. Minimum 12 months and maximum 24 months D. Minimum 12 months and maximum 60 months
15. What is the quantum of margin under National Urban Livelihoods Mission (NULM) scheme A. 5% of the project cost B. 5% of the loan amount C. 7.5% of the project cost D. 5-10 % of the project cost
16. What is the target for DRI advances in Priority Sector A. 1% of net bank credit B. 1% of gross bank credit of previous year C. 1% of total advances of previous year D. 1% of incremental credit.
17. When a foreign currency for forward transactions is quoted at discount A. The currency is dearer in future B. The currency is expected to be cheaper in future C. The currency at same rate in future D. Currency will be available with ease in future
18. When a letter of credit is confirmed by a confirming bank, the request for such confirmation should come from which of the following A. Negotiating bank B. Exporter C. Importer D. Opening bank
19. When does a commercial paper becomes transferable A. Not transferable B. After 15 days of issue C. After 29 days of issue D. Any time
20. When more than one banks are allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is known as. A. Participation B. Consortium C. Syndication D. Multiple banking
21. When the objective is to conduct the affairs of a company or bank in a transparent manner for giving fair deal to all the stake holders, this is called A. Implementation of prudential guidelines B. Organisational restructuring C. Corporate governance D. Corporate restructuring
22. Which among other conditions, is the condition that should be satisfied so as to constitute a person as resident in India under FEMA A. He should have stayed in India for 182 days B. He should have been in India for 182 days during the previous year C. He should have been in India for 182 days during the previous calendar year D. He should have been in India for 182 days during the previous financial year
23. Which among the following is approved modes for maintenance of the cash reserve ratio A. In the form of balance in currency chest of the currency chest bank branches B. In the form of cash balances maintained by various branches of the banks C. In the form of balances with other banks maintained by bank branches D. In the form of balances in a special account with RBI opened for this purpose
24. Which among the following is considered a small farmer for the purpose of loans under priority sector A. Whose minimum 50% income is from agriculture operations B. Whose irrigated land holding is less than 2.5 acres C. Whose unirrigated land holding is less than 5 acres D. B and c above
25. Which combination of current ratio and debt-equity ratio is generally acceptable to the banker A. Current ratio 1.7.1 and Debt equity ratio 4.1 B. Current ratio 1.33 and Debt equity ratio 2.1 C. Current ratio 1.17 & debt equity ratio 1.5.1 D. Current ratio 1.1 and debt equity ratio 1.1
26. Which of the following alterations is not a material alteration. A. Converting order to bearer cheque B. Cancelling crossing of a cheque C. Changing payees name D. Crossing an uncrossed cheque
27. Which of the following can be considered as fiscal deficit A. Total income less govt. Borrowing B. Total payments less total receipts C. Total payments less capital receipts D. Total expenditure less total receipts excluding borrowing
28. Which of the following cannot be categorized as a word processor A. MS word B. Word Perfect C. Word Star D. Windows Excel
29. Which of the following is not considered as advance to agriculture under priority sector A. Loans to State Electricity Board for erection of high-power transmission line B. Loans to Primary Agr. Service society C. Subscription to bonds of NABARD for agriculture investment purpose D. Loans for bio gas plant
30. Which of the following is one of the disclosures introduced by RBI for balance sheet A. Advances against selective credit control B. Advances against selective items C. Advances against software development D. Advances to sensitive sectors
31. Which of the following is responsible for identification of the activities to be undertaken by SGSY beneficiaries in a block under this scheme A. NABARD B. Lead Distt Bank C. SGSY Task Force D. SGSY Committee
32. Which of the following is the part of hexadecimal number system A. A B. A134 C. 1600 D. 1010
33. Which of the following terms describes the computer program better A. Hardware instruction B. Input devices C. Output device D. Software 34. Which of the following will not be considered as intangible assets A. Preliminary expenses B. Pre-operative expenses C. Debit balance of profit and loss account D. None of the above
35. Which of the following, better describes the term internet A. A network of stand alone computers B. A network of servers C. A network of networks D. A network of world-wide computers
36. Who among the following cannot issue a commercial paper A. Companies B. Financial Institutions C. Primary dealers D. Commercial banks
37. Working capital turnover ratio is 6 and current ratio 2.1. If current liabilities are ₹10Lakh and net profit to sales percent 5%, what is the amount of net profits A. ₹10Lakh B. ₹8Lakh C. ₹7Lakh D. ₹6Lakh
38. X has a joint former or survivor account XY with his wife Y. X has an overdraft account, where he is not paying dues. Can you exercise right of set-off as a banker. A. In joint accounts, it is not possible B. It is possible as the account is former or survivor C. Possible with consent of Y D. It is possible as in joint accounts this can be done
39. Your branch had purchased /negotiated a bill under letter of credit but it is not being paid by the foreign buyer. After how much period, it will get crystallised A. Immediately on expiry of the transit period B. Transit period plus 10 days C. Transit period plus 25 days D. Transit period plus 30 days
40. Your branch had sanctioned a pre-shipment credit to an exporter who has sent the goods for shipment but so far he has not handed over the bill of lading, although shipment has taken place few weeks back A. If it not presented to bank within 7 days of shipment it will become stale B. If it is not negotiated within 10 banking days it cannot be negotiated C. If it is not presented to the bank for negotiation within 21 days of date of shipment, it will become stale D. If it not presented for negotiation within 21 days of date of shipment it will be claused bill of lading
41. Your branch has received a loan application for ₹4Lakh under the scheme for providing finance for small scale service and business enterprise scheme. The maximum period during which the application can be disposed off is A. Two weeks B. 8-9 weeks C. 4 weeks D. 3 weeks ANSWER: 4 weeks
42. Your branch opens an account in the name of joint trustees. You receive an information that one of them has died. In such circumstances. A. Bank account will be operated upon by surviving trustees. B. Bank will not permit operations unless it is specifically mentioned in the trust deed C. Surviving trustees can operate the account if bank permits. D. Surviving trustee will get all powers to operate the account ank will not permit operations unless it is specifically mentioned in the trust deed
43. Your exporter customer M/s York Exports Limited presents to you an export bill drawn in Pound Sterling for negotiation under a letter of credit. Which of the following rates will be applied for this bill A. Bills buying rate B. TT buying rate C. Bills selling rate D. TT selling rate ills buying rate
44. The amount representing the full export value of the goods exported shall be received through an AD Bank in the manner: a. Bank draft, pay order, banker's or personal cheques. b. Foreign currency notes/foreign currency travellers’ cheques from the buyer during his visit to India. c. Payment out of funds held in the FCNR/NRE account maintained by the buyer d. International Credit Cards of the buyer. e. all of the above
45. What is the limit for housing loans under priority sector in metropolitan centres with population above ten Lakh? Select one or more: A. 10 Lakh B. 15 Lakh C. 20 Lakh D. 25 Lakh
46. At present what type of Risk approach is being implemented by the banks as regards to Credit and operational Risk. Select one or more: A. Standardized & Basic Indicator Approach B. RBIA C. Adv. RBIA D. None of these
47. In order to encourage a formal channel of communication between customers and banks at the branch level, which one of the following is not true with regard to RBI's latest guidelines Select one or more: A. Banks should include customers in the Branch Level Customer Service Committee (BLCSC). B. As Sr. Citizen usually form an important constituency in banks, a Sr Citizen should also be included in the committee. C. The BLCSC should give quarterly report giving input/suggestions to Standing Committee on Customer Service. D. The BLCSC should meet at least once in a month. E. None of the above.
48. The financial instruments that draw their value from some underlying financial instrument or contract, are called: Select one or more: A. Participatory notes B. Derivatives C. Options D. Futures
49. Which of the following cannot be appointed as a nominee by an NRI account holder, residing in UK: Select one or more: A. His old mother of 98 years, residing in India B. . His minor niece, aged 3 years, living in Canada C. His son living in USA for the last 30 years D. HUF in which he is a Karta
50. Which statement is incorrect about Basic Savings Bank Deposit Account? Select one or more: A. Total credits in such accounts should not exceed one Lakh rupees in a year and maximum balance in the account should not exceed fifty thousand rupees at any time B. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month C. Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities D. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document. E. None of these
| 51. A Bank to operate has to obtain a license from the Reserve Bank of India. Such license is issued as per the provisions of A. Reserve Bank of India Act B. Banking Regulation Act C. Constitution D. Both a & b
52. Ways and Means Advances are provided by A. Nationalized Banks B. Public Sector Banks C. Regional Rural Banks D. None of these
53. Identify the power not pertaining to Reserve Bank of India A. Power to license B. Power regarding audit of banks C. Power to impose penalties D. None of these
54. There is a co-operative bank facing winding up. The said co-operative bank is registered under the Deposit Insurance and Credit Guarantee Corporation Act. Then who has the power to order its winding up. A. Reserve Bank of India B. State Government C. Registrar of Co-operatives D. None of them
55. Reserve Bank of India can issue ₹1000 denomination currency notes as per the provisions of A. Reserve Bank of India Act B. Banking Regulation Act C. Both a & b D. Constitution
56. Co-operative Banks come under the control of RBI by virtue of certain provisions of A. Reserve Bank of India Act B. Banking Laws (Application to Co-operative Societies) Act,1965 C. Banking Regulation Act D. All the above
57. In respect of the terms and conditions of service of its workmen, opening and closing of its branch premises, a bank is Answerable to A. Its Corporate Office B. Reserve Bank of India C. Labor Authorities D. Its Head Office
58. A Co-operative Bank is having branches in more than one State. A. Multi purpose Co-operative Bank B. Multi State Co-operative Bank C. Multi Dimensional Co-operative Bank D. Multi Co-operative Bank
59. MSMED Act 2006 was notified on: A. April 16, 2006 B. January 16. 2006 C. June 16, 2006 D. October 2, 2006
60. Identify the odd one A. State Bank of India B. Axis Bank C. Reserve Bank of India D. Postal Bank
61. Which one is not appropriate A. A Commercial bank is prohibited in selling insurance products B. An urban co-operative bank can sell mutual fund products C. A Private Sector bank can issue a Credit card D. A Nationalized bank is permitted to accept articles under safe custody
62. Accepting deposit receipt under safe custody article is the secondary business of a commercial bank. A. True B. In correct C. False D. In fact it is the Primary business
63. Identify the main liability of a commercial bank A. Term Deposit B. Term Loan C. Both a & b D. None of these
64. These are banking companies operating only in a limited geographical area. A. State Co-operative Bank B. District Co-operative Bank C. Foreign Bank D. Local Area Banks
65. ABC and company approached RBI for a license to start a commercial bank. After examining, RBI has rejected the company?S application. Then ABC company A. Is ineligible to start a banking business B. Can carry on with the banking business after a period of six months C. Is not ineligible to start a banking business D. None of these
66. A banking company, whose license is cancelled can appeal to Banking Ombudsman within a period of 30 days from the date of the order rejecting the license. A. True B. Not Banking Ombudsman, but RBI Governor C. False D. Neither Banking Ombudsman nor RBI Governor but RBI Board
67. Banks should submit their request for new branches, administrative offices, atms for consideration of RBI A. As and when needed B. Once in a year C. Once in every six months D. Once in a quarter
68. Who cannot approach directly RBI for branch licensing A. Regional Rural Banks B. Urban Co-operative Banks C. Nationalized Banks D. Private Sector Banks
69. A Foreign Bank which has a branch in Calcutta has to A. Deposit and keep deposited with RBI a sum of ₹20Lakhs B. Deposit an amount of 20% of the profit each year as disclosed in the profit and loss account with RBI C. Both a & b D. Deposit a token amount as stipulated by RBI from time to time
70. A commercial bank (existing) has a place of business in both Mumbai and Kolkata minimum paid up capital and reserves A. ₹ 5Lakhs B. ₹10Lakhs C. Any amount D. ₹10 crores
71. Identify the Act which stipulates that the subscribed capital of a banking company shall not be less than half of its authorized capital and the paid up capital shall not be less than half of its subscribed capital. A. Banking Regulation Act B. Companies Act C. Reserve Bank of India Act D. All the above
72. A bank when it receives more than the specified % of their shares for transfer to one party, the bank's board has to refer the matter to RBI. The Bank shall not transfer the shares A. Without intimating RBI B. Without receiving RBI's acknowledgment C. Without intimating Finance Ministry D. Without intimating Company Law Board
73. Banks can raise their capital even in the form of A. Innovative debt instruments B. Perpetual instruments C. Perpetual non cumulative preference shares D. Any one of the above
74. Holding of beneficial interest by any individual or his spouse or his minor child, whether singly or taken together in the shares of a company exceeding ₹5Lakhs or 10% of the paid up capital of the company amounts to A. Substantial interest B. Beneficial interest C. Vested interest D. Associated interest
75. A director of a banking company shall not hold office continuously for more than 10 year A. True B. False C. Not 10 years but 8 years D. Neither 10 years nor 8 years but 7years
76. In the absence of a chairman, the management of the whole of the affairs of the banking company shall be entrusted to A. A Managing Director B. A committee of Top Management representatives C. An Executive Director D. None of these
77. RBI may appoint an additional director/s in the interest of A. Public B. Banking policy C. Depositors of the company D. All of these
78. Which one is not the permitted business of banks A. Accepting of term deposits B. Issuing of travellers? Cheques C. Selling of coins D. Making available Safe deposit lockers
79. When the board of a banking company is ordered to be reconstituted as per the provisions of the Banking Regulation Act, directors will not be removed for the purpose of reconstitution by A. Lots B. Majority decision C. Both a and b D. None
80. The shareholders of a banking company are entitled to dividends only before all the capitalized expenses are written off. A. True B. False C. It is after not before D. There is no connection with the capitalized expenses and declaring of dividends
81. If the bank’s board is not properly constituted then the Central Government will have to reconstitute the Board. A. Appropriate B. In fact RBI is empowered C. Not Appropriate D. Neither Central Government Nor RBI but Banking Ombudsman ANSWER: In fact RBI is empowered
82. Any office, sub-office, pay-office, sub-pay office and any place at which deposits are received, cheques enchased or moneys lent is known as A. Place of Banking B. Place of Business C. Branch of a Bank D. Place of a Bank ANSWER: Place of Business
83. A Sr Management Officer is to be appointed as Principal Officer by each bank-as per RBI directives under which of the following? A. Ombudsman Scheme B. KYC directives, C. Clean Note Policy D. Banking supervision E. All the above. 84. Other than the Governor, Deputy Governors of RBI, the other directors are A. Appointed B. Nominated C. Selected D. Elected ANSWER: Nominated
85. As per the provisions of the Reserve Bank of India Act, the Whole time Chairman or the Managing Director of a banking company to hold qualification shares of minimum 50. A. It is not 50 but 100 B. They need not hold any qualification shares C. They need to have minimum qualification shares of 10 as per the provisions of Banking Regulation act and not RBI act D. None of these ANSWER: They need not hold any qualification shares
86. The Regional Rural Banks are constituted under the A. Regional Rural Banks Act,1976 B. Reserve Bank of India Act C. Banking Regulation Act D. Regional Rural Banks Act,1975
87. Which statement is incorrect. (Banking business) A. Carry on and transact guarantee and indemnity business B. Buying or selling or bartering of goods C. Acquire, construct and maintain any building for its own purpose. D. Collecting and transmitting of money and securities
88. The first major study by Cadbury Committee in 1992 led to the introduction of A. Corporate Culture B. Corporate Governance C. Corporate Social Responsibility D. Corporate Sector
89. Identify the Public Sector Banks A. Central Bank of India B. State Bank of Mysore C. United Bank of India D. All the above
90. A Private Bank governed by A. Companies Act B. Banking Regulation Act C. Reserve Bank of India D. A, b & c
91. Which of the following is not the key element of KYC policy to, be framed by individual banks as per RBI directives? A. Customer Acceptance policy, B. Customer Identification Procedure, C. Risk Management, D. Monitoring of transactions E. None of the above.
92. Which one of the following is not true about the introducer, who is introducing the account? A. A staff member can also introduce, B. Introducer must come to the bank for signing the AOF for the purpose of introduction. C. Introducer should have an account which is satisfactorily operated,and the account is not having small and marginal balances, D. Account of introducer should be opened at least 6 months before he introduces an account. E. All the above are true.
93. A Sr Management Officer is to be appointed as Principal Officer by each bank-as per RBI directives under which of the following? A. Ombudsman Scheme B. KYC directives, C. Clean Note Policy D. Banking supervision E. All the above.
94. Which one of the following is not true about the independent confirmation of Customer s address? A. Address be verified from ration card; Driving license, PAN Card etc . B. Sr. Number of the document from which address is verified be noted on AOF. C. If a customer is not able to produce as (1) above, his account can not be opened at all. D. Address can also be verified by deputing an employee for the purpose. E. None of the above.
95. In case of accounts of Minor operated by their guardians, photo of ______ be obtained? A. Minor, B. Guardian, C. Both, D. None, no photo is required. E. None of the above.
96. Regarding issue of fresh cheque book, which one of the following guidelines of RBI is not true? A. Fresh cheque book can be issued to 3rd party only on production of duly signed requisition slip from previous cheque book issued to the party. B. If cheque book is issued against request. Letter, drawer should come personally to receive the cheque book. C. Cheque book against request letter can be issued to 3rd party if his signatures are attested by the drawer and as an additional precautions, banks should send a letter to the customer and written confirmation of that should be received and held on record. D. Cheque book against requisition letter should be sent to the drawer under registered post. E. Loose cheques can be issued to the drawer only and on production of pass book.
97. Transactions in newly operated accounts are to be kept under close watch at least for a period of___? A. 3 Months, B. 6 Months, C. 90 days, D. Fortnight, E. 180 days.
98. U/s 12 of PML act 2002, banks are to keep record of their customer relationship and transactions at least for a period of _ years? A. 5 years, B. 4 years, C. 8 years, D. 10 years, E. None of the above.
99. Regarding introduction given by Staff members, RBI has advised banks that? A. Introduction from staff members should not be accepted. B. Introduction of only confirmed staff members, should be accepted, C. Only person ranked officer & above can introduce, D. Introduction from Staff members should be discouraged, E. All the above.
100. Mr Mohinder Singh opened SB account on 24.04.09, requested for cheque book on 27.04.09 which was issued on the same day. A cheque dated 17.04.09 is presented in clearing. The bank should: A. Return the cheque as it is issued before the date of opening the account B. Pay, if otherwise in order C. Close the account of the customer for unethical practices D. Return the cheque with remarks 'get the date corrected'
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A TO Z IN BANKING - by BHUSHAN BHATIA M:9501130600