OBJECTIVE QUESTIONS ON BANKING INDUSTRY - 6 1. Which of the following cannot be called as a value Added Service offered by a bank ? (1) Special Accounts for poor sections of Society (2) Accident Insurance cover (3) Instant Credit of outstation cheques (4) Free cheque books (5) all are value added services Answer:(4) 2. Opening the Savings Bank Account of a minor girl will be called as which of the following in Banking terminology (1) Retail Banking (2) Merchant Banking (3) Institutional Banking (4) Social Banking (5) Corporate Banking Answer:(1) 3. Which of the following terms is NOT used in Banking Sector ? (1) SLR (2) NPA(3)Credit Rating (4) Fixed (5) PURA Answer:(5) 4. Banking Sector will fall under which of the following sectors ? (1) Agricultural Sector (2) Service Sector (3) Manufacturing (4) Industrial Sector (5) None Answer:(2) 5. An account in which trading of shares in their electronic form is done, is known as ___ (1) Demit Account (2) NRI Account (3) NRIO Account (4) Current Account (5) none Answer:(1) 6. Which of the following is NOT a measure of the Risk Management in Banks ? (1) CRR (2) RTGS (3) SLR (4) Deposit Insurance (5) All are the measures of risk management Answer:(2) 7. RBI’s open market operation transactions are carried out with a view to regulate ___ (1) Liquidity in the economy (2) Prices of essential commodities (3) Inflation (4) Borrowing power of the banks (5) none Answer:(5) 8. When more than one banks are allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as ___ (1) Participation (2) Consortium (3) Syndication (4) Multiple banking (5) None Answer:(2) 9. Open market operations, one of the measures taken by RBI in order to control credit expansion in to economy means ____ (1) Sale or purchase of Govt. securities (2) Issuance of different types of bonds (3) Auction of gold (4) To make available direct fianance to borrowers (5) None Answer:(2) 10. The bank rate means ___ (1) Rate of interest charged by commercial banks from borrowers (2) Rate of interest at which commercial banks discounted bills of their borrowers. (3) Rate of interest allowed by commercial banks on their deposits (4) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks (5) None Answer:(4) 11. What is an Indian Depository Receipt ? (1) A deposit account with a public Sector Bank (2) A depository account with any of Depositories in India (3) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company (4) An instrument in the form of deposit receipt issued by Indian depositories (5) none Answer:(3) 12. Reverse repo means ___ (1) Injecting liquidity by the Central bank of a country through purchase of Govt. securities. (2) Absorption of liquidity from the market by sale of Govt. securities (3) Balancing liquidity with a view to enhance economic growth rate (4) Improving the position of availability of the securities in the market (5) Any of the above Answer:(3) 13. The stance of RBI monetary policy is ____ (1) inflation control with adequate liquidity for growth (2) improving credit quality of the banks (3) strengthening credit delivery mechanism (4) supporting investment demand in the economy (5) Any of the above Answer:(4) 14. What is call Money ? (1) Money borrowed or lent for a day or over night (2) money borrowed for more than one day but upto 3 days (3) Money borrowed for more than one day but up to 7 days (4) Money borrowed for more than one day but up to 14 days (5) None Answer:(3) 15. The branding line of Bank of Baroda is ___ (1) International Bank of India (2) India’s International Bank (3) India’s Multinational Bank (4) World’s local Bank (5) None Answer:(1) 16. The logo of Bank of Baroda is known as ___ (1) Sun of Bank of Baroda (2) Baroda Sun (3) Bank of Baroda’s Rays (4) Sunlight of Bank of Baroda (5) None Answer:(4) 17. One of the major challenges banking industry is facing these days is money laundering. Which of the following acts/norms are launched by he banks to prevent money laundering in general ? (1) Know your Customer Norms (2) Banking Regulation Act (3) Negotiable Instrument Act (4) Narcotics and Psychotropic Substance Act (5) None Answer:(1) 18. Lot of Banks in India these days are offering M-Banking Facility to their customers. What is the full form of ‘M’ in ‘M-Banking’ ? (1) Money (2) Marginal (3) Message (4) Mutual Fund (5) Mobile Phone Answer:(2) 19. Which of the following is/are true about the “Sub-prime Crisis” ? (The term was very much in news recently)? (A) It is a mortgage crisis referring to Credit default by the borrowers (B) Sub- Prime borrowers were those borrowers who were rated low and were high risk borrowers (C) This crisis originated because of negligence in credit rating of the borrowers. (1) Only A (2) Only B (3) Only C (4) All A, B and C (5) None Answer:(4) 20. Which of the following is NOT the part of the scheduled banking structure in India ? (1) Money Lenders (2) Public Sector Banks (3) Private Sector Banks (4) Regional Rural Banks (5) State Co-operative Banks Answer:(1) 21. Very often we read in newspapers/magazines about “Sovereign Wealth Funds”. Which of the following is/are the correct description of the same? (A)These are the funds or the reserves of a government or central bank of a country which are invested further to earn profitable returns. (B)These are the funds , which were accumulated by some people over the years but were not put in active circulation as they retain them as black money for several years. (C)The funds which are created to be used as relief funds or bailouts packages are known as sovereign funds. (1)both (B) and (C) only (2)only(B) (3)only (C) (4)only (A) (5) None Answer:(3) 22. The Ratio of the cash reserves that the banks are required to keep with RBI is known as (1) Liquidity Ratios (2) SLR (3) CRR (4) Net Demand and Time Liability (5) None Answer:(2) 23.very often we read about the monetary policy of the RBI in newspapers/magazines.what is/are the objectives of the monetary policy of the RBI? (A) To maintain price stability and ensure adequate flow of credit to the productive sector of the economy (B) Stability for the national currency, growth in employment and income are also looked into (C) Change in government revenue and expenditure to influence the level of national output and prices (1) Only A (2) Both A and B (3) Only C (4) All A, B and C (5) None Answer:(2) 24. Which of the following services is introduced recently by the Reserve Bank of India and SEBI in India for the first time ? (A) Trading of Currency futures (B) Opening of NRI Accounts in Indian currencies (C) Foreign Direct Investment through Participatory Notes (PNs) by the Foreign Institutional Investors. (1) Only A (2) Only B (3) Only C (4) All A,B and C (5) None Answer:(1) 25. The rate at which the RBI gives loans to the commercial banks is called (1) Repo Rate (2) Bank Rate (3) Reverse Repo (4) CRR(5) None Answer:(1) 26. Which of the following is NOT the part of the organized sector of India Money Market ? (1) Mutual Funds (2) Non- Banking Financial Companies (3) Unit Trust of India (4) Reserve Bank of India (5) Chit funds Answer:(5) 27. Which of the following cannot be called as a Debt Instrument as referred in financial transactions ? (1) certificate of Deposits (2) Bonds (3) Stocks (4) Commercial Papers (5) Loans Answer:(5) 28. Whenever RBI does some open Market Operation Transactions, actually it wishes to regulate which of the following ? (1) Inflation Only (2) Liquidity in economy (3) Borrowing powers of the banks (4) Flow of Foreign Direct Investments (5) None Answer:(3) 29. In economics it is generally believed that the main objective of a public sector financial company like bank is to __ (1) Employ more and more people (2) Maximize total profits (3) Maximize total production (4) Provide financial service to the people of the nation of its origin across the country (5) Sell the goods at subsidized cost Answer:(2) 30. What is the Repo Rate ? (1) It is a rate at which RBI sell Govt. securities to banks (2) It is a rate at which RBI buys Govt. securities from banks (3) It is a rate at which RBI allows small loans in the market (4) It is a rate which is offered by banks to their most valued customers or prime customers (5) None Answer:(1) 31. Which of the following correctly describes what sub-prime lending is ? (A) Lending to the people who cannot return the loans (B) Lending to the people who are high value customers of the banks. (C) Lending to those who are not a regular customer of a bank (1) Only A (2) Only B (3) Only C (4) All, A, B and C (5) None Answer:(1) 32. Which of the following is/are the major concepts visible in today’s banking industry in India ? (A) Risk Based Management (B) Growing Competition (C) IT Initiatives (1) Only A (2) Only B (3) Only C (4) Both B and C (5) All A, B and C Answer:(5) 33. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign nation ? (1) Personal Loan (2) Corporate Loan (3) Educational Loan (4) Mortgage Loan (5) None Answer:(3) 34. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank ? (A) It does not accept deposits (B) It has a limited cash disbursement capacity (C) Lack of human interface (1) Only A (2) Only B (3) Only C (4) All A, B, and C (5) None Answer:(4) 35. A Bank/Financial Organization these days relies heavily on ecommerce for its transaction. As a part of system security, it has introduced organisation’s security awareness manual. This step of the organization can be classified under which one of the following categories of measures for a business / (1) Preventive (2) Compliance (3) Corrective (4) Detective (5) None Answer:(1) 36. A customer wishes to purchase some US dollars in India. He/She should go to ___ (1) Public Debt Division of the RBI only (2) American Express Bank Only (3) RBI or any branch of a bank which is authorized for such business (4) Ministry of Foreign Affairs (5) None Answer:(3) 37. Very often we see in the advertisements published by Financing Institutes/Agencies stating that their products are given high or average Ratings. These Rating Agencies classify bonds/ investments in how many categories ? (A) Low Risk (B) Average Risk (C) High Risk (1) Only (A) (2) Only (B) (3) Only (C) (4) All (A), (B) and (C) (5) None Answer:(1) 38. A consortium of commercial banks has joined hands to float a new company which will collect data related to frauds and security risks. Which of the following is the name of the company ? (1) Loss data Consortium (2)Customer Service Corporation (3) Bank net India Ltd (4) Nu Tech Corporate Services Ltd. (5) None Answer:(1) 39. The Indian Government has introduced a new Wholesale Price Index (WPI) recently. The new WPI is based on which of the following years ? (1) 2004 – 05 (2) 2005 – 06 (3) 2006 – 07 (4) 2008 – 09 (5) None Answer:(1) 40. As per newspaper reports the Bank of Japan, which is the Central Bank of the country, took special measures, first time in last six years, to contain the rise in the value of Yen. Why did Japan had to take this special measure which surprised many countries ? (A) Japan was fearful that a rising currency would damage its export-led recovery plan. (B) It was one of the measures taken by Japan to come out of its economic setback it suffered in the recent past. (C) Since the US Dollar has became a weak Global Currency, Japan wants the Yen to be rcognized as the global currency in place of the US dollar. (1) Only A (2) Only B (3) Only C (4) Only A & B (5) Only B & C Answer:(4) 41. After imposing fine on 19 banks for mis- selling derivative products earlier in 2011, the Reserve Bank of India in July 2011 imposed a penalty of Rs. 25 lakh on which of the following banks for violating ‘Know Your Customer’ and anti-money laundering norms while opening accounts ? (1) HDFC Bank (2) Citibank (3) Indian Overseas Bank (4) Bank of Baroda (5) None Answer:(2) 42. The Reserve Bank of India has set up a Working Group to review current operating procedure of monetary policy including ‘LAF’ What id full form of ‘LAF” ? (1) Liquid Assets & Funds (2) Liabilities And Funds (3) Liabilities Adjustment Finance (4) Liquidity And-Finance (5) Liquidity Adjustment Facility Answer:(5) 43. Which of the following organizations/agencies plays a major and crucial role to moderate & control inflation in a country ? (A) Central Bank of the Country (B) Stock Markets of the country (C) Planning Commission of the country (1) Only B (2) Only A (3) Both (A & B (3) Both B & C (5) All A, B & C Answer:(2) 44. Many times we read about ‘Balance of Payment’ in economic literature. Which of the following statement(s) define the-term correctly ? (A) It is record of all transactions made between one particular country and all other countries. (B) It is a record of all transactions made between the countries wherein the payment was made in a currency other than US Dollar (C) It is a record of all exports/imports from/by a country and difference in amount of both in terms of payment in US dollars. (1) Only A (2) Only C (3) Only B (4) Both A & B (5) Only B & C Answer:(1) 45. As per the existing policy the Cash Reserve Ratio (CRR) of scheduled banks in fixed at a certain percentage of their NDTL. What is full form of NDTL ? (1) New Demand & Tenure Liabilities (2) Net Demand & Time Liabilities (3) National Deposits & Total Liquidity (4) Net Duration and Total Liquidity (5) New Deposits and Term Liquidity Answer:(2) 46. Who among the following were selected for the prestigious Ramon Magsaysay Award for 2011 on July 27, 2011 ? (1) Neelima Mishra (2) Harish hande (3) Tri Mumpuni (4) Koul Panah (5) All of the above Answer:(5) 47. The Reserve Bank of India recently decided to review its monetary policy more frequently. This measure of the RBI will be called RBI’s (A) Monetary Measure (B) Financial Market Measure (C) Regulatory Measure (1) Only (A) (2) Only (B) (3) All (A), (B) & (C) (4) Both (A) & (B) (5) Only (C) Answer:(3) 48. “Basel Committee on Banking Supervision” is also/or popularly known as ___ (1) Thomas Cook Committee (2) Talwar Committee (3) Bank for International Settlements Committee (4) Peter Cook Committee (5) Banking Regulation Committee Answer:(3) 49. Which of the following is/are the objectives of the Public distribution system ? (A) To put an indirect check on the open market prices of various items (B) Providing food grains and other essential items to the vulnerable section of the society. (C) To provide competitive price of the products to farmers. (1) Only A (2) Only B (3) Only A & B (4) Only B & C (5) All A, B & C Answer:(2) 50. Which of the following is/are the highlights of the Foreign Trade Policy 2009-14, Which was reviewed by the Government recently ? (A) Government to increase exports upto US $ 200 billion this fiscal year (B) List of items allowed for duty free imports reduced by 30% (C) Few towns like Barmer, Bhiwandi and Agra were declared towns of Export Excellence. (1) Only A (2) Only B (3) Only C (4) Only B & C (5)OnlyA&C Answer:(5)
Posted on: Thu, 10 Oct 2013 06:28:51 +0000
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