IBPS Bank Examinations - Banking Awareness - Mock Test Papers

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IBPS Bank examinations Mock tests on Banking Awareness by A. Gauri Sankar

IBPS Examinations
Banking Awareness Mock test
papers

Part: 001
ABBREVIATIONS
Prepared by:
A. Gauri Sankar, Chennai 600042
[email protected]

001
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IBPS BANK EXAMINATIONS BANKING AWARENESS PRACTICE TEST
01. Which of the following cannot be called as a debt instrument as referred in the financial transactions?
a) Certificate of deposit; b) Bonds; c) Stocks; d) Commercial papers; e) Debentures

02. Whenever RBI does some open market operation transactions, actually it wishes to regulate which of the
following?
a) Inflation; b)Liquidity in economy; c) Borrowing powers of the banks; d)Flow of foreign direct investments;
e) None of the above

03. In economics, it is generally believed that the main objective of a public sector financial company like bank is to:
e) Employ more and more people; b) Maximize the total profits; c) Maximize total production; d) Provide financial services to
the people of the nation of its origin across the country; e) Sell the goods at subsidized rates

04. In a company by the use of price sensitive corporate information about the company, people closer to the
company try to adopt the technology to make gains or cover losses in share market dealings and such process is
known as:
a) Insider trading; b) Future trading; c) Foreign trading; d) Stock trading; e) None of these

05. What is meant by Repo rate?
a) When a bank is in need of cash it can it can discount bills of exchange and avail loan facilities from Reserve Bank of India.
b) When a bank has excess cash, they buy securities from RBI against cash on the condition that they resell the securities to
RBI on a pre fixed day and price
c) It is rate at which RBI allows temporary loan facilities to commercial banks against government securities on the condition
that the bank will repurchase the securities within a short period.
d) It is a rate which is offered by banks to their most valued customers or prime customers; e) None of these

06. Bharat Nirman does not cover which of the following areas?
a) Rural employment; b) Rural housing c) Rural water supply; d) Irrigation facilities; e) It covers all the above areas

07. Which of the following committee has given its recommendations on Financial inclusions?
a) Rakesh Mohan committee; b) Rangarajan committee; c) Sinha committee; d) Gadgil committee; d) None of these

08. The actual return of an investor is reduced sometimes when the prices of the commodities go up all of a sudden
and in financial sector this type of phenomenon is known as
a) Probability risk; b) Market risk; c) Inflation risk; d) Credit risk; e) None of these

09. An industry which is fighting hard to increase its market share in existing market(with new popular products) is
known as:
a) Market vendor; b) Market operator; c) Market leader; d) Market follower; e) Market challenger

10. Which of the following products launched by most of the banks help farmers in getting instant credit for various
agricultural purposes?
a) Kisan credit card; b) Personal loan; c) Business loan; d) ATM card; e) None of these

11. 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 country?
a) Personal loan; b) Corporate loan; c) Housing loan; d) Educational loan; e) Mortgage loan

12. Which of the following policies of the financial sectors is basically designed to transferring local financial assets
into foreign assets freely and at market determined exchange rates?
a) Capital account convertibility; b) Financial deficit management; c) Minimum support price; d) Restrictive trade practices
e) None of these

13. A customer is willing to purchase some US dollars in the country. He/she should go to:
a) Public Debt Division of the RBI only; b) American Express Bank only; c) RBI or any branch of a bank which is authorized for
conducting such business; d) Ministry of Foreign affairs; e) None of these

14. Which of the following is not a social assistance program launched by the Government of India?
e) National old age pension scheme; b) Annapurna scheme; c) National family benefit scheme; d) Indira Gandhi National
Disability Pension Scheme; e) All are social assistance programs

15. Many times we see in newspapers that some projects are launched by the Government authorities on PPP basis.
What is the full form of PPP?
a) Preferential Payment Plan; b) Public Private partnership; c) Partial payment project; d) Popular private project
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e) Public private plan

16. The ratio of the cash reserves that the banks are required to keep with RBI is known as:
a) Liquidity ratio; b) Statutory liquidity ratio; c) Cash Reserve Ratio; d) Net demand and time liabilities; e) None of these

17. The availability of cash and other cash like marketable instruments that are useful in purchases and investments
are commonly known as:
a) Cash crunch; b)Liquidity; c) Credit; d) Marketability; e) None of these

18. Which of the following schemes launched by the Government of India provides a guaranteed 100 days employment
to rural employment seekers in India?
a) Bharat Nirman; b) Swarnajayanthi Grameen Rozgar Yojana; c) Mahatma Gandhi National Rural Employment Guarantee act;
d) National Food for Work Programme; e) None of these

19. The Reserve Bank of India keeps on modifiying various rates/ratios to keep the flow of liquidity in the market in a
balanced manner and which of the following rates/ratios/indexes is not directly controlled by the RBI?
a) Cash reserve ratio; b) Bank rate; c) Repo rate; d) Reverse repo rate; e) Wholesale price index

20. Many banks have adopted/launched Core Banking Solutions and what do you mean by core banking solutions?
a) A marketing strategy adopted by the banks; b) A new type of automated teller machines useful for rural population; c) A
delivery channel for quick and fast delivery; d) A new product launched to help senior citizens only as they are not able to
visit the branches/ATMs frequently; e) None of these

21. Which of the following terms are not used in banking sector?
a) Statutory liquidity ratio; b) Non performing asset; c) Credit rating; d) Fixed; e) REPO

22. Banking sector comes under which of the following sectors?
a) Agriculture sector; b) Service sector; c) Manufacturing sector; d) Industrial sector; e) None of these

23. An account in which trading of shares in their electronic form is done is known as:
a) Demat account; b) NRE account; c) NRO account; d) FCNR account; e) RFC account

24. Which of the following programmes/schemes of the Government of India is not directly related with agriculture
activities?
a) Drought Prone areas programme; b) Promotion of integrated pest management; c) Integrated wastelands development
programme; d) Annapurna scheme; e) Desert Development programme

25. Find the odd man out from the following groups?
a) ICICI Bank, Canara Bank, Central Bank of India, Punjab National Bank, Indian Bank
b) Canara Bank, State Bank of India, Lakshmi Vilas Bank, Karur Vysya Bank, United Bank of India
c) Bank of India, Corporation Bank, Indian Bank, IDBI Bank, Axis bank
d) Bank of Maharashtra, Barclays bank, Oriental Bank of Commerce, Indian Bank, IDBI bank
e) Union Bank of India, Bank of India, Andhra Bank, Dena Bank, Indian Bank

26. Which among the following is the recently opened private sector bank in the country?
a) ICICI bank; b) HDFC bank; c) AXIS Bank; d) Kotak Mahindra Bank; e) Yes bank

27. Mortgage relates to which type of loan among the following?
a) Housing loan; b) Educational loan; c) Car loan; d) Gold loan; e) Personal loan

28. Fourteen banks were nationalized in the country during the first stage on:
a) 19.07.1970; b) 19.07.1969; c) 19.07.1971; d) 18.07.1969; e) 15.07.1969

29. The sponsorship between State government, central government and sponsor bank is in the ratio of--------- in
respect of Regional Rural Banks in the country:
a) 15-50-35; b) 50-35-15; c) 35-15-50; d) 35-50-15; e) 15-35-50

30. When it comes to providing locker facility to the customer of any bank, the relationship between the customer and
banker is that of:
a) Debtor and creditor; b) Bailor and bailee; c) Lessee and lessor; d) Lessor and lessee; e) Agent and principal

002
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01. When does Reserve Bank of India issues annual policy statement?
b) January; b) April; c) July; d) October; e) None of the above

02. Which of the following has been renamed as Annual Policy Statement by the Reserve Bank of India?
a) Busy season banking policy; b) Slack season banking policy; c) Monetary and credit policy; d) Annual statistical report; e) None
of the above

03. When does RBI review its annual policy statement?
a) July; b) October; c) January; d) All the above; e) None of the above

04. Which is the monitoring and reviewing authority regarding fair practices code as per recent annual policy statement
of Reserve Bank of India?
b) Banking codes and standards Board of India; b) Banking Ombudsman; c) Institute for development in banking technology;
d) debt recovery tribunal; e) none of the above

05. Which committee has recommended introduction of smart card?
a) Rangarajan committee; b) Saraf committee; c) Nayak committee; d) Pannirselvan committee; e) None of the above

06. Which committee had formulated consultative profile in connection with electronic funds transfer?
a) A.K. Purwar committee; b) Y V Reddy committee; c) K S Shere committee; d) S. A. Dave committee; e) none of the above

07. The process of transformation of physical shares, commercial paper or certificate of deposit into electronic form is
called as:
a) Electronic clearing service; b) Electronic securitization; c) Share truncation; d) Dematerialisation; e) None of the above

08. Providing banking services to a customer without his entrance inside the banks branch is called as:
a) Virtual banking; b) relationship banking; c) universal banking; d) mobile banking; e) none of the above

09. Where is the headquarters of Society for worldwide Interbank Financial Telecommunication SWIFT situated?
a) New York; b) Los Angels; c) Brussels; d) Hague; e) None of the above

10. Where has National Financial Switch of IDRBT established?
a) Mumbai; b) New Delhi; c) Hyderabad; d) Bangalore; e) None of the above

11. Cheque truncation means:
a) Tearing a cheque into two or more pieces; b) Sending the photostat copy of a cheque in collection; c) Using the electronic
image of a cheque; d) Keeping the Photostat copy of a cheque with collecting bank before sending the original cheque to the
drawee branch; e) None of the above

12. What do you mean by universal banking?
a) Provision of all financial services in one country; b) Provision of all financial services in one bank; c) Provision of all financial
services at a branch; d) Provision of all financial services at any of the counters of a branch of a bank; e) None of the above

13. Corporate governance is a system
a) By which a company is directed and controlled; b)In which Board of directors are responsible for managing the business
affairs of a company; c) Both the above; d) Governing corporate companies by the government; e) None of the above

14. Whose interest is kept in mind in a good corporate governance system?
a) Shareholders of the company; b) Stakeholders of the company; c) Employees of the company; d) All the above; e) None of
the above

15. What do you mean by risk?
a) Loss; b) Depreciation of capital; c) Decrease in profitability; d) Possible loss that depends upon occurrence and non
occurrence of an incident; e) None of the above

16. The employees of the bank went on strike and when it comes to risk what do you mean by this?
a) Operational risk; b) Employee risk; c) Credit risk; d) Market risk; e) Systemic risk

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17. Basel II accord is mostly concerned with:
a) Central vigilance commission; b) Non performing assets; c) Capital adequacy ratio; d) Foreign direct investment; e) None of
the above

18. A bank is unable to pay its short term deposits because the banks funds are blocked in long term investments. The
risk derived in this case is known is:
a) Market risk; b) Operational risk; c) Liquidity risk; d) Interest rate risk; e) None of the above

19. A bank recently introduced a new deposit scheme which was not popular amongst the public and what do you mean
by the risk associated with this?
a) Operations risk; b)Credit risk; c) Liquidity risk; d) Market risk; e) None of the above

20. The Assets Liabilities committee in a bank makes the assessment of:
a) Liquidity risk; b) Credit risk; c) Operations risk; d) All the above; e) None of the above

21. A debtor makes default in repayment of a bank loan and which type of risk is this for a lending bank?
a) Liquidity risk; b) Operational risk; c)Interest rate risk; d) Credit risk; e) None of the above

22. Which type of risk arises before a bank that trades in government securities?
a) Liquidity risk; b) Market risk; c) Credit risk; d) Trade risk; e) None of the above

23. Which of the following options best defines the risk?
a) Loss occurred due to happening of an event
b) Loss occurred due to non happening of an event
c) Risk experienced due to uncertainty
d) Probability of loss due to uncertainty

24. Which of the following is not included in three pillars of BASEL capital accord?
a) Minimum capital requirement; b) Supervisory review; c) Market discipline; d) Core banking solution; e) None of the above

25. When ICICI Limited merged with ICICI bank?
a) 1
st
August, 2000; b) 1
st
August 2001; c) 1
st
August, 2002; d) 1
st
August, 2003; e) none of the above

26. Bank of Madura Limited merged with:
a) ICICI bank limited; b) UTI bank limited; c) HDFC bank limited; d) IDBI bank e) None of the above

27. Which bank has changed its name to AXIS bank limited?
a) Centurion bank; b) Times bank; c) Bank of Punjab Limited; d) Bank of Karad; e) UTI bank limited

28. Bank of Cochin merged with:
a) Punjab National Bank; b) Bank of Baroda; c) State Bank of India; d) Canara Bank; e) United Commercial bank

29. Times Bank Limited merged with:
a) HDFC Bank; b) Bank of India; c) Punjab National Bank; d) Central Bank of India; e) none of the above

30. What do you mean by horizontal merger?
a) Merger of two or more companies that manufacture homogenous products;
b) Merger of two or more companies that manufacture heterogonous products;
c) Merger of a principal company with its subsidiary company
d) All the above

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01. The merger of two business units, that manufacture different products of like nature, is called as:
c) Horizontal merger; b) Vertical merger; c)Lateral merger; d) Diagonal merger; e) None of the above

02. What do you mean by golden parachute?
a) Attractive benefits that are given to top executives of targets company at the time of acquisition
b) Attractive benefits that are given to clerical staff and subordinate staff of target company at the time of acquisition
c) Attractive benefits that are given to top executives of acquirer company at the time of acquisition
d) Attractive benefits that are given to clerical staff and subordinate staff of acquirer company at the time of ac quisition

03. Which of the following committee was set up in 1993 with a view to recommend insurance sector reforms?
a) M.N. Goiporia committee; b) L.C. Gupta committee; c) R.N. Malhotra committee; d) Narasimhan committee; e) none of the
above

04. What do you mean by bankassurance?
a) Selling insurance policies by the banks; b)Insurance of the properties belonging to the banks; c) Insurance of the properties
by the banks; d) Life insurance business undertaken by the banks; e) None of the above

05. Which of the following is included in bancassurance?
a) Insurance policies issued by the banks in their names
b) Selling by a bank the insurance policies of its ancillary insurance company
c) Selling by a bank the insurance policies of any insurance company
d) All the above

06. A bank wishes to undertake insurance business. Whose permission is necessary before commencement of insurance
business?
a) Life Insurance Corporation of India; b) General Insurance Corporation of India; c) Insurance regulatory and development
authority; d) Reserve Bank of India; e) None of the above

07. Selling of banking products by an insurance company is called as
a) Assurfinance; b) Bankassurance; c) Innovative banking; d) All the above; e) None of the above

08. What is a contract of insurance?
a) It is a contract of guarantee; b)It is a contract of pledge; c) It is a contract of hypothecation; d) It is a contract of indemnity;

09. Which of the following is not an essential condition for an urban cooperative bank to undertake bankassurance
business?
a) The bank should obtain prior permission from Insurance Regulatory and development authority
b) The bank should have a net worth of not less than Rs. 50 crore
c) The bankassurance business can be through their branches
d) The bank will have to enter into an agreement with the insurance agency concerned

10. Which among the following is called as non performing assets?
a) Assets that can exchange income; b) Assets that eases to earn interest income; c) Assets that have not been commented
upon by the auditors; d) All the above; e) None of the above

11. Which of the following does not pertain to non performance assets?
a) Sub standard assets; b) Doubtful assets; c) Loss assets; d) All the above; e) Standard assets

12. Which among the following defines a non performing asset?
a) In a loan account, the principal due has not been paid for more than ninety days
b) In a loan account, the interest due has not been paid for more than ninety days
c) Both (a) and (b) as mentioned above
d) Assets that have not been commented upon by the bank auditors

13. Which among the following committees had recommended Income Recognition and assets classification norms?
a) Rangarajan committee; b) Goiporia committee; c) Narasimhan committee; d) Jankiraman committee; e) None of the above
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14. What do you mean by the term called as DRT, when it comes to recovery of bank dues?
a) Debt Recovery Tribunal; b) Debtor recovery tribunal; c) Debt reminder tribunal; d) Debt recovery tariff; e) Delhi Road
transport

15. Which of the following has introduced Banking Ombudsman in our country?
a) Reserve Bank of India; b) Indian Banks association; c) National Institute of Bank Management; d) Indian Institute of
Banking and Finance; e) None of the above

16. Banking Ombudsman scheme has been introduced under the provisions of
a) Reserve Bank of India act; b) Banking regulation act; c) Indian contract act; d) Consumer protection act; e) All the above

17. What is the maximum period of time after which a customer of a bank can contact Banking Ombudsman, if he does
not receive satisfactory response to his complaint?
a) One month; b)Two months; c) Three months; d) One year; e) None of the above

18. A complaint can be submitted before Banking Ombudsman within ______of final decision by the bank?
a) Two months; b) Three months; c) Six months; d) Twelve months; e) None of the above

19. In the term CIBIL, what do you mean by B?
a) Bank; b) Bureau; c) Borrower; d) Bench; e) None of the above

20. Which committee has recommended financing to self help group?
a) Kalia committee; b) Narasimhan committee; c) Vasu committee; d) Goiporia committee; e) none of the above

21. Which of the following has set up Rural Infrastructure Development Fund?
a) National Bank for agriculture and rural development; b) Reserve Bank of India; c) State Bank of India; d) Five major
commercial banks; e) None of the above

22. When a currency is converted into any other currency without any limit and for any purpose, it is called as
a) Fully convertible; b) Partially convertible; c) Controlled convertible; d) Not at all convertible; e) None of the above

23. Which of the following committees has recommended for capital account convertibility in our country?
a) A T Pannirselvam; b) S. Padmanabhan; c) S. Rangarajan committee; d) S. S. Tarapore committee; e) none of the above

24. What is the necessity of foreign capital for a developing country like India?
a) It encourages savings in the country; b) It is helpful to solve the problem of balance of payment; c) It is helpful for economic
development of a developing country; d) All the above; e) None of the above

25. Which of the following committees were set up by Government of India with a view to attract domestic and foreign
investments in the country?
a) Investment commission; b) Foreign Investment commission; c) Inland and Foreign investment commission; d) National
savings commission; e) None of the above

26. External commercial borrowings is a part of
a) Balance of payment; b) Balance of trade; c) Current account; d) Capital account; e) None of the above

27. External commercial borrowings are governed under:
a) Foreign Exchange Regulation act; b) Securitisation and Reconstruction of Financial assets and enforcement of security
interest act; c) Debt Recovery Tribunal act; d) Foreign exchange management act

28. Foreign trade policy is framed and implemented by:
a) Chief controller of Import and Exports; b) Director General of Foreign Trade; c) Governor of Reserve Bank of India; d)
Chairman of Finance commission; e) None of the above

29. Under which ministry Director General of Foreign Trade function?
a) Commerce ministry; b) Finance ministry; c) Foreign ministry; d) Home ministry; e) None of the above

30. An offshore banking unit (OBU) is a unit
a) That is located in a foreign country; b) That is located in special economic zone and deals in foreign currency; c) That is
engaged in business of lending foreign currency and establishing joint ventures; d) All the above; e) None of the above
004
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01. When it comes to scheduled commercial banks, which out of the following is not true?
d) Nationalised banks; b) Regional Rural banks; c) Foreign banks; d) Private sector banks; e) Local area banks

02. When it comes to nationalization of fourteen banks on 19.07.1969, which among the following is not true?
a) Punjab National Bank; b) Central Bank of India; c) Canara Bank; d) Indian Bank; e) Andhra Bank

03. When it comes to nationalization of six banks during the second stage on 15.04.1980, which among the following is
not true?
a) Andhra Bank; b) Punjab and Sind Bank; c) New Bank of India; d) Vijaya Bank; e) Indian Overseas Bank

04. New Bank of India merged with which of the following banks?
a) Central Bank of India; b) Canara Bank; c) Indian Bank; d) Punjab National Bank; e) Bank of India

05. Which amongst the following is old private sector bank?
a) Axis Bank Limited; b) HDFC Bank Limited; c) Nainital Bank Limited; d) Yes Bank Limited; e) Indus Ind Bank Limited

06. When it comes to new private sector banks, which amongst the following is odd man out?
a) Axis Bank Limited; b) ICICI Bank Limited; c) Kotak Mahindra Bank Limited; d) The Ratnakar Bank Limited; e) Development
Credit Bank Limited

07. Find the odd man out from the following:
a) State Bank of Patiala; b) State Bank of Indore; c) State Bank of Hyderabad; d) State Bank of Bikaneer and Jaipur; e) State
Bank of Mysore

08. When it comes to the regional centres of Reserve Bank of India, which amongst the following is odd man out?
a) Chennai; b) Hyderabad; c) Mumbai; d) New Delhi; e) Kolkatta

09. RBI is responsible for undertaking the following activities except one activity find the irrelevant activity
a) Currency note issuing authority; b) Banker to the banker; c) Financial adviser to the government; d) Controller of capital
markets; e) Custodian of cash reserves of banks

10. Currency note issue is one among several functions of Reserve Bank of India and which amongst the following is
not the responsibility of RBI?
a) Issue of 2 rupee notes; b) Issue of 1000 rupee notes; c) Issue of one rupee note; d) Issue of ten rupees note; e) Issue of
twenty rupees note

11. Which are the traditional functions of Reserve Bank of India?
a) Issue of currency notes; b) Forex management; c) Functions like export assistance and clearing house functions; d) All the
above; e) None of the above

12. Which amongst the following is not the development function of Reserve Bank of India?
a) Agriculture development; b) Promotion of industrial finance; c) Development of bill market; d) Open market operations; e)
Promotion of export through refinance activities

13. The financial system in our country comprises of which amongst the following?
a) Financial markets; b) Financial assets; c) Financial Intermediaries and institutions; d) All the above; e) None of the above

14. Which amongst the following is money market instrument?
a) Call money; b) Term money; c) Notice money; d) All the above; e)None of the above

a) National Bank for agriculture and rural development; b) Industrial Finance corporation of India; c) Industrial Investment
Bank of India; d) IDBI bank; e) EXIM Bank

16. Which amongst the following is not term deposits issued by commercial banks?
a) Current account; b) Fixed deposit; c) Recurring deposit; d) Reinvestment deposit; e) All the above

a) Non resident external account; b) Non resident ordinary account; c) FCNR account; d) Savings bank; e) Resident Foreign
Currency account

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18. The minimum period for opening FCNR deposit account is:
a) Six months; b) Three months; c) One year; d) Two years; e) Three years

19. Non resident external account, FCNR account and RFC account can be opened by means of foreign inward
remittances only and which amongst the following is not foreign inward remittance?
a) Foreign demand draft; b) Foreign currency traveler cheques; c) Foreign currency notes; d) Demand draft; e) Online transfer
of money from accounts maintained with banks in foreign countries

20. Regional Rural Banks were established in our country on:
a) 02.10.1975; b) 02.10.1985; c) 02.10.1976; d) 02.10.1974; e) 02.10.1977

21. At the time of remitting cash into deposit accounts and overdraft accounts, the customers are in a position to
furnish the permanent account number for amount exceeding Rupees:
a) 10000; b) 50000; c) 100000; d) 200000; e) 25000

22. What do you mean by Two parallel transverse lines on the face of the cheque?
a) Open cheque; b) Bearer cheque; c) Order cheque; d) Crossed cheque; e) None of the above

23. On 27.07.2013, on verification of a cheque presented by a customer of your bank, you find that the date of the
cheque has been wrongly written as 27.07.2012 and you are of the opinion that the cheque should be returned to
the customer and with what reasons?
a) Stale cheque; b) Mutilated cheque; c) Post dated cheque; d) Damaged cheque; e) No need to return the cheque

24. In the case of deposit account opened with the bank, the relationship of the banker with the customer is:
a) Creditor and debtor; b) Debtor and creditor; c) Bailor and bailee; d) Agent and principal; e) Lessor and lessee

25. A customer wants to avail a loan against the security of life insurance policy in his name and what is his relationship
with the banker while availing the loan?
a) Pledgor and pledge; b) Mortgagor and mortgagee; c) Assignor and assignee; d) Lessor and lessee; e) Bailor and bailee

26. In the case of safe deposit locker facility availed by one customer, which amongst the following is applicable?
a) Hypothecation; b) Pledge; c) Mortgage; d) Bailment; e) Lease

27. When a company wants to open an account with a bank, the copies of the following are to be produced to the
banker while opening the account:
a) Memorandum of association; b) Articles of association; c) Certificate of incorporation; d) Board resolution; e) All the above

28. Which amongst the following are categorized under priority sector advances?
a) Retail traders; b) Small business enterprises; c) Professional and self employed persons; d) Small scale industries; e) All the
above

29. When it comes to weaker sections, which amongst the following is odd man out?
a) Small business enterprises; b) Marginal farmers; c) Professional and self employed persons; d) DRI beneficiaries; e) Self
help groups

30. Which amongst the following is called as mother of deposits?
a) Current account; b) Fixed deposit; c) Recurring deposit; d) Savings bank; e) Reinvestment deposit

005
10

01. According to know your customer guidelines, which amongst the following are not low risk clients?
e) Salaried customers; b) Government owned companies; c) Government departments; d) Regulatory and statutory bodies; e)
High networth individuals

02. In the following categories of bank customers, who are considered as medium risk customers as per KYC
guidelines?
a) High networth individuals; b) Non resident Indians; c) Blind people; d) All the above; e) None of the above

03. Which is the odd man out in respect of various risks faced by banks when it comes to risks?
a) Credit risk; b) Liquidity risk; c) Operations risk; d) Personal risk; e) Market risk

04. There are various insurance players in the market. Can you identify the public sector insurance companies who take
care of general insurance business in the country:
a) United India Insurance company Limited; b) New India Assurance Company Limited; c) Oriental Insurance company Limited;
d) National Insurance company Limited; e) All the above

05. Which are the specific principles of insurance?
a) Utmost good faith; b) Insurable interest; c) Proximate clause; d) All the above; e) None of the above

06. What is the full form of FINO a term we see frequently in financial newspapers?
a) Financial Information Network and Operations Limited; b) Financial Information National and operations limited; c) Financial
Intelligence Information Network and Operations Limited; d)Financial Interest Network and Operations Limited; e) None of
the above

07. Banks and other financial insititutions in the country are required to maintain a certain amount of liquid assets like
cash, gold, precious metals and other short term securities as a reserve all the time. In the world of banking, this
procedure is known as:
a) SLR; b) CRR; c) REPO; d) Reverse repo; e) None of the above

08. What does the letter, L denote in the term LAF as referred every now and then in relation to monetary policy of
Reserve Bank of India?
a) Liquidity; b) Leverage; c) License; d) Language; e) Lending

09. Personal loans can be canvassed amongst the following:
a) Salaried persons; b) Agriculturists; c) Daily wage workers; d) Retail traders; e) None of the above

10. Which amongst the following is not a development bank as on date?
a) Industrial Finance Corporation of India; b) Export and Import Bank of India; c) Small Industries Development Bank of India;
d) National Bank for agriculture and rural development; e) ICICI bank

11. What do you mean by probagation of cells?
a) Tissue culture; b) Aqua culture; c) Horticulture; d) Pisciculture; e) Olericulture

12. What do you mean by apiculture?
a) Fruit production; b) Honeybee rearing; c) Cultivation of fodder crops; d) Vegetable cultivation; e) Propagation of cells

13. What do you mean by yellow revolution?
a) Cocoa production; b) Meat production; c) Increase in agriculture production; d) Flower production; e) Oil seeds and pulse
production

14. Rubber production is denoted by which kind of revolution?
a) Green revolution; b) Black revolution; c) Blue revolution; d) White revolution; e) Brown revolution

15. State Bank of India having a branch at Chennai opens an account with Bank of America at New York and what do
you mean by the account?
a) Vostro account; b) Nostro account; c) Loro account; d) Current account; e) None of the above

16. Which defines Loro account in respect of the following?
a) Canara Bank, Chennai opening an account with Bank of America at Chicago in US dollars
b) State Bank, Coimbatore opening an account with Deutsche Bank at Bonn in euro currency
c) Bank of America, New York opening an account with Bank of England at London in sterling pounds
11

d) Bank of America, Los Angels opening an account with Central Bank of India, Mumbai in Indian rupees
e) Bank of Tokyo at Osaka opening an account with State Bank of India, New Delhi in Indian rupees

17. Find the correct order in respect of the following when it comes to issue of shares by a company:
a) Authorized capital- issued capital subscribed capital paid up capital
b) Authorized capital subscribed capital issued capital paid up capital
c) Authorized capital paid up capital subscribed capital issued capital
d) Authorized capital issued capital paid up capital subscribed capital
e) Issued capital authorized capital paid up capital subscribed capital

18. Among the following which appears in the balance sheet of a company?
a) Subscribed capital; b) Authorized capital; c) Issued capital; d) Paid up capital; e) Partners capital

19. Which amongst the following is off balance sheet items in respect of a banking company?
a) Guarantees; b) Deposits; c) Loans granted to the public; d) Machinery account; e) Reserves

20. What do you mean by the character; M in the term called as CAMELS?
a) Maintenance; b) Management; c) Misappropriation; d) Money; e) Mortgage

21. Ramesh maintains a current account with State Bank of India and a cheque for Rs. 10000/- was issued by him
whereas his account showed a balance of Rs. 8000.00 and when he approached the bank manager, the manager
assured to help him by the following activity:
a) Permitting temporary overdraft for Rs. 2000; b) Closing the account immediately; c) Advising him to surrender the
remaining cheque leaves; d) Returning the cheque presented to the bank; e) Telling the other party not to present the
cheque once again to the bank

22. What do you mean by money laundering?
a) Washing the currency notes in a good laundery; b) Converting money obtained through illegal sources in to legal money; c)
Keeping the money in currency chests; d) Sending excess cash to the other branch; e) None of the above

23. The term coparcener applies to which amongst the following?
a) Partnership firm; b) Company accounts; c) Proprietorship firm; d) Hindu undivided family; e) Joint account

24. What do you mean by an executor?
a) The person appointed by depositor to receive the money in the case of his death on behalf of his minor legal heir as
mentioned in the will
b) The person appointed for executing cinemas in a mall
c) The person appointed by a court of law to receive the money in case of death of the depositor on behalf of minor son of the
depositor where no will has been made by the depositor
d) Anyone of the above; e) None of the above

25. Bank branches are in a position to send cash transaction report on daily basis in respect of transactions more than:
a) Rs. 10 lakhs; b) Rs. 20 lakhs; c) Rs. 30 lakhs; d) Rs. 50 lakhs; e) None of the above

26. ASBA relates to which amongst the following:
a) Sending money for investment in shares through initial public offer; b) A loan scheme; c) Deposit scheme; c) Foreign
exchange remittance facility; e) Sending money to a share broker for purchase of shares in secondary market

27. What do you mean by the character: S in the term called as RTGS?
a) Settlement; b) Standard; c) Sequence; d) Stimulation; e) Stipulations

28. State Bank of India is considered to be the largest bank in the country. The size is measured by which among the
following?
a) Total deposits and total advances; b) Total number of branches; c) Total number of employees; d) Total deposits; e) Total
advances

29. What do you mean by COPRA?
a) Consumer protection act; b) Consumer programme act; c) Consumer patents act; d) Consumer perfection act; e) none of
the above
30. Nomination is not applicable in respect of which of the following:
a) Term deposits; b) Demand deposits; c) Gold loans; d) Safe deposit locker; e) Safe custody service
006
12

01. The broad sectors of Indian economy are:
f) Primary sector; b) Secondary sector; c) Tertiary sector; d) All the above; e) None of the above

02. In India the financial year ends with
a) March; b) December; c) June; d) September; e) none of the above

03. All banking companies have to submit their annual balance sheets as on:
a) 31
st
March; b) 31
st
December; c) 30
th
June; c) 30
th
September

04. What are the main characterstics of Indian economy:
a) Agrarian economy; b) Mixed economy; c) Developing economy; d) All the above; e) None of the above

05. Gross national product is symbolically represented by the formula: GNP = C + G+ I+(X-M) + (R-P) where, G
represents
a) Net exports; b) Net imports; c) Investment expenditure; d) Net factor income abroad; e) Government expenditure

06. The features of a developing economy are:
a) Low per capita income; b) Low capital per head; c) Low human development indicators; d) Heavy population pressure; e) All
the above
07. National income can be measured by the following methods;
a) Product method; b) Income method; c) Consumption method; d) All the above; e) None of the above

08. The ex officio chairman of the planning commission in India is
a) Prime minister; b) President of India; c) Finance Secretary; d) RBI governor; e) None of the above

09. The headquarters of Canara Bank, one among the nationalized banks is situated at:
a) Chennai; b) Mangalore; c) Bangalore; d) Mumbai; e) Manipal

a) Indian Bank Indian Overseas Bank Canara Bank
b) Indian Overseas Bank Canara Bank Bank of India
c) Canara Bank Bank of India Central Bank of India
d) Bank of India Central Bank of India Bank of Maharashtra
e) Central Bank of India Bank of Maharashtra Federal Bank

11. The first chairman of Planning commission was
a) Jawaharlal Nehru; b) Lal Bahadur Sastri; c) Gulsari Lal Nanda; d) Indira Gandhi; e) Rajiv Gandhi

12. The allocation of resources in terms of men, material and machinery is called as:
a) Planning by inducement; b) Physical planning; c)Indicative planning; d) Imperative planning; e) Rolling plan

13. What do you know by the term called as PURA?
a) Providing urban amenities in rural areas; b) Providing urban arrangement in rural areas; c) Providing unlimited amenities in
rural areas; d) Providing unlimited arrangements in rural areas; e) None of the above

14. Narrow banking means:
a) The bank branch which has narrow corridors; b) The bank situated in narrow street; c) The bank which accepts deposits and
invests the amount in government securities; d) The bank which only lends loans and not accepts any deposits from the
public; e) All the above

15. What do you know by P in the term called as LPG?
a) Privatisation; b) Popularisation; c) Provisions; d) Publications; e) None of the above

16. The document titled as: Towards faster and more inclusive growth pertains to which five year plan amongst the
following:
a) Twelfth plan; b) Eleventh plan; c) Tenth plan; d) Nineth plan; e) Eighth plan

17. What do you know by MTA when it comes to five year plans?
a) Mid term approach; b) Middle term approach; c) Main term approach; d) Middle term approach; e) None of the above

18. The causes of urban poverty are:
13

a) Migration from rural areas; b) Lack of skilled labour; c) Lack of housing facilities; d) Limited job opportunities in cities; e) All
the above

19. The main provisions of MGNREGA are:
a) Employment to be given within 15 days of application for work
b) Employment within 5 kilometres radius, else extra wages to be paid
c) At least one third beneficiaries have to be women
d) Gram sabha will recommend works
e) All the above

20. Egg/poultry production is represented by ;
a) Round revolution; b) Silver revolution; c) Yellow revolution; d) Golden revolution; e) White revolution

21. Round revolution represents
a) Meat and tomato production; b) Potato production; c) Cotton production; d) Egg/poultry production; e) None of the above

22. Commission for agricultural costs and prices called as CACP was set up during 1965 with the name:
a) Agricultural price commission; b) Agriculture product commission; c) Agriculture price committee; d) Agriculture Procedure
commission; e) None of the above

23. Which is the odd man out from the following when it comes to Maharatnas in the country?
a) Oil and Natural Gas corporation; b) Steel authority of India Limited; c) Indian oil corporation Limited; d) National thermal
power corporation Limited; e) Bharat electronics Limited

24. When it comes to Navratnas in the country, which amongst the following is the odd man out?
a) National aluminum company Limited; b) National Mineral development corporation; c) Neyveli Lignite Corporation Limited; d)
Oil India Limited; e) Coal India Limited

25. Among the following which is not relevant to banking?
a) Right of set off; b) Nomination; c) Legal heirs; d) Endowment; e) Either or survivor

26. The main foreign exchange reserves in the country comprises of the following:
a) Foreign currency assets; b) Gold stock; c) Special drawing rights; d) Reserve tranche position; e) All the above

27. What are the salient features of certificate of deposits?
a) It is issued by the commercial banks; b) It is a savings certificate; c) The maturity varies from 3 months to one year; d) All
the above; e) None of the above

28. MIBOR represents
a) The interest rate at which bank borrows funds from other banks; b) The interest rate at which bank borrows from RBI; c)
The interest rate at which RBI borrows from commercial banks; d) The rate at which banks borrow from the public; e) The
rate at which the banks in India borrows from foreign banks

29. What do you mean by CRISIL?
a) Credit rating information services of India Limited; b) Credit rating Intelligence services of India Limited; c) Credit rating
Indicative services of India Limited; d) Credit rating integrated services of India Limited; e) None of the above

30. Sensex is the barometer of Indian capital market BSE representing the weighted stock market index of _____well
established and financial sound companies listed on Bombay Stock exchange
a) Fifty; b)Forty; c) Thirty; d) Twenty; e) One hundred

007
14

01. Reserve Bank of India was established on 1
st
April ______, in accordance with the provisions
of Reserve Bank of India act_________
g) 1935 1934; b) 1934-1935; c) 1935-1936; d) 1937-1938; e) all the above

02. Reserve Bank of India was nationalized during the year:______
a) 1948; b) 1949; c) 1951; d) 1952; e) all the above

03. What do you mean by the term called as FEMA?
a) Foreign exchange maintenance act; b) Forex management act; c) Foreign exchange management act; d) Foreign exchange
managing act; e) Foreign exchange mortgaging act

04. Find the odd man out from the following group:
a) Current account, savings bank, fixed deposit; b) Savings bank, fixed deposit, recurring deposit; c) Fixed deposit, recurring
deposit, reinvestment deposit; d) Recurring deposit, reinvestment deposit, non resident external account; e) Fixed deposit,
current account, savings bank

a) Bank of Tokyo; b) Barclays Bank; c) Hong Kong Bank; d) Bank of America; e) State Bank of India

a) Barclays Bank; b) Hong Kong Bank; c) Bank of America; d) State Bank of India; e) Industrial Finance Corporation of India

07. What do you mean by E in the term called as EFT?
a) Electrical; b) Electronic; c) Elementary; d) Engineering; e) None of the above

08. An account essentially a drawing account against which credit has been granted by the bank and is operated in the
same way as current account in which an overdraft limit has been sanctioned is called as:
a) Overdraft account; b) Cash credit account; c) Current account; d) Term loan account; e) None of the above

09. What are the essentials of money laundering?
a) A crime is committed; b) There are gains from the crime; c) Proceeds have been received from crime; d) There is some
transaction in respect of these proceeds or the gains; e) All the above

10. The aspects which require special mention while judging the standard of corporate governance in a banking
institution are:
a) Constitution of the board of directors; b) Transparency; c) Policy formulation; d) Internal controls; e) All the above

11. Which among the following are called as negotiable instruments?
a) Cheque; b) Demand draft; c) Bill of exchange; d) Promissory note; e) All the above

12. When it comes to IFSC code, it pertains to which among the following ?
a) Bank code; b) Branch code; c) Account code; d) Party code; e) None of the above

13. You are working in Alpha branch and a customer presents a cheque for Rs. 10000.00 crossed to Beta bank for
collection in his account maintained with your branch and you are advised to return the cheque by your supervisor
and with what reasons?
a) Crossed cheque; b) Generally crossed; c) Specially crossed; d) Mutilated; e) Unwarranted

14. Find the correct match from the following:
a) Indian bank-Kolkatta; b) Canara Bank-Bangalore; c) Syndicate Bank Mumbai; d) Indian Overseas Bank-coimbatore; e)
Punjab National Bank Hyderabad

15. Find the incorrect match from the following:
a) Indian Overseas Bank Chennai; b) Indian Bank Chennai; c) Bank of India Mumbai; d) Punjab National Bank
Chandigarh; e) Syndicate Bank-Manipal

16. Find the odd man out from the following :
a) Indian Bank; b) Canara Bank; c) Indian Overseas Bank; d) Corporation Bank; e) Bank of India

17. Jammu and Kashmir Bank is considered to be:
a) Nationalised bank; b) New private sector bank; c) Foreign bank; d) Local area bank; e) Old private sector bank
15

18. The total market value of all final goods and services produced in a year is called as:
a) Gross national product; b) Gross domestic product; c) National income; d) Flat money; e) None of the above

19. Bulls and bears are connected to which among the following:
a) Banking industry; b) Capital market; c) Insurance industry; d) Zoo located in Trivandrum; e) Animals shown in animal planet

20. Bouncing is a word used in banking on account of which among the following:
a) Cheque honouring; b) Cheque discounting; c) Cheque collection; d) Cheque return; e) None of the above

21. When it comes to crossing of a cheque or draft, which among the following is found to be in order?
a) Two parallel transverse lines on the left hand corner of the instrument;
b) Two parallel tranverse lines on the right hand corner of the instrument;
c) Two horizontal transverse lines on the left hand corner of the instrument
d) Two parallel transverse lines on the bottom portion of the instrument

22. The material alteration made on a document or a negotiable instrument like a cheque to change the mandate of the
drawer with intention to defraud is called as:
a) Mutilation; b) Forgery; c) Alteration; d) Correction; e) None of the above

23. The capacity of the borrower to repay the loan or advance in time along with interest as per agreed terms is called
as:
a) Creditworthiness; b) Credibility; c) Credit consciousness; d) Credit control; e) None of the above

24. A person who takes some money from the other person with an undertaking to repay the amount with or without
interest after some time is called as
a) Friend; b) Enemy; c) Neighbor; d) Debtor; e) Thief

25. When it comes to the term called as E-commerce, what do you mean by E?
a) Elementary; b) Electronic; c) Engineering; d) Essential; e) Economics

26. Permanent account number relates to which among the following?
a) Income tax assessment; b) Establishing a shop; c) Getting telephone connection; d) Account number provided for savings
accounts in banks; e) Number provided for each individual while providing AATHAAR card

27. When it comes to the various parties connected to letter of credit which among the following is not in order?
a) Exporter; b) Importer; c) Exporters bank; d) Customs authority; e) Importers bank

28. Banks insist operation conditions while opening joint account with banks and which among the following phrases
is not in practice when it comes to operation in joint accounts?
a) Either or survivor; b) Former or survivor; c) Jointly operated; d) No: 1 or survivor; e) Allow the first party only

29. When it comes to hindu undivided family, who is allowed to operate the account among the following?
a) The senior most male member of the family; b) The senior most female member of the family; c) Either the senior most
male member or female member of the family; d) Any male member in the family; e) None of the above

30. In the term called as GATT, what do you mean by A?
a) Appropration; b) Amendment; c) Adjustment; d) Agreement; e) Analysis

008
16

01. Which term among the following is not related to banking?
h) Right off set off; b) Right to lien; c) Sub standard assets; d) Endowment plan; e) Credit risk

02. Which among the following is short term borrowings for any firm?
a) Debentures; b) Shares; c) Long term loans availed from banks; d) Subordinated borrowings; e) Sundry creditors

03. Raman brothers is a partnership company and they are engaged in selling textile goods and are able to pay Rs. 10
lakhs out of the total purchase of Rs. 30 lakhs and the wholesale dealer enters into credit terms with the firm so
that Raman brothers can settle the dues within 60 days and how it is represented in the balance sheet of the firm?
a) Sundry debtors; b) Term loan; c) Sundry creditors; d) Debt funds; e) None of the above

04. What do you mean by the rate of discount at which the Reserve Bank of India discounts the first class bills of
exchange brought by the banks in the country?
a) Repo rate; b) Bank rate; c) Reverse repo rate; d) Cash reserve ratio; e) None of the above

05. The stock exchange pertaining to BSE is sensex and NSE is nifty and in the case of Tokyo in Japan, it is called as:
a) Simix; b) Nikkei; c) Mibtel; d) Bovasta; e) None of the above

06. Which is not correctly matched in respect of the following?
a) Immovable properties mortgage; b) Movable properties hypothecation; c) Safe deposit locker lease; d) Safe custody
receipt plege; e) Loan against insurance policy assignment

07. The loans granted to the following are treated as priority sector advances except one find the odd man out:
a) Small scale industries; b) Professional and self employed persons; c) Differential rate of interest scheme; d) Loans to
Corporates; e) Small business enterprises

08. When it comes to security precautions as provided in the currency notes issued by RBI in our country, which among
the following are considered to be the odd man out?
a) Security thread; b) Intaglio printing; c) Optically variable ink; d) Currency value; e) Micro letterings

09. When it comes to electronic banking which among the following are not coming under the purview of electronic
banking?
a) Debit cards; b) Credit cards; c) Mobile banking; d) Safe deposit locker; e) Internet banking

10. Bank of America situated at New York is opening an account with State Bank of India at Kolkatta and what do you
mean this?
a) Nostro account; b) Vostro account; c) Loro account; d) RFC account; e) FCNR account

11. The returned non resident Indians are permitted to open the following accounts:
a) Non resident external account; b) Non resident ordinary account; c) Resident Foreign Currency account; d) Foreign Currency
Non Resident account; e) None of the above

12. Find the odd man out from the following when it comes to low risk clients as per KYC guidelines:
a) Regulatory and statutory bodies; b) Government owned companies; c) Salaried customers; d) Pardanashin women; e)
Government companies

a) Oriental Insurance company Limited; b) Life Insurance Corporation of India; c) National Insurance company Limited; d) New
India assurance company Limited; e) United Insurance company Limited

a) Max New York life insurance company limited; b) HDFC life insurance company limited; c) ICICI prudential life insurance
company Limited; d) Life insurance corporation of India; e) Kotak Mahindra life insurance company Limited

15. When it comes to the specific principles of insurance which among the following is odd man out?
a) Utmost good faith; b) Insurable interest; c) Indemnity; d) Balanced funds; e) Subrogation

16. What do you mean by RIDF?
17

a) Rural India development fund; b) Rural Infrastructure development fund; c) Rural Innovative development fund; d) Rural
Industrial development fund; e) None of the above

17. Which among the following is not correctly matched?
a) Equity shares dividend; b) Preference shares interest; c) Debentures interest; d) Bonds interest; e) Non cumulative
preference shares dividend

18. In the term called as UNSCR, what do you mean by S?
a) Secondary; b) Security; c) Sensitivity; d) Seniority; e)Selectivity

19. When it comes to bullion, which among the following is odd man out?
a) Gold; b) Palladium; c) Platinum; d) Silver; e) Diamond

20. Importer exporter code is issued by which among the following?
a) Reserve Bank of India; b) Director general of foreign trade; c) Insurance regulatory and development authority; d) Securities
and exchange board of India; e) Finance ministry

21. When it comes to service industry, which among the following group is odd man out?
a) Education hotel transport; b) Hotel industry transport milk supply; c) Banking insurance hospital; d) Motorcycle
manufacturing industry railways airways; e) Motorcycles rental security share broking

22. When an exporter before shipment of goods avails a loan for procurement of raw materials, processing,
manufacturing, storing and shipping of goods, it represents:
a) Export finance; b)Import finance; c) Packing credit; d) Term loan; e) Cash credit

23. Purchasing the securities at one market and selling the same securities at another market simultaneously is termed
as:
a) Arbitrage; b) Forfaiting; c) Spread; d) Factoring; e) Advancing

24. Find the odd man out when it comes to sanctioning of loans to a customer?
a) Borrowing; b) Lending; c) Advancing; d) Procuring; e) Extending credit

25. Which of the following banks is limited to agriculture and rural finance?
a) SIDBI; b) Reserve Bank of India; c) IFCI; d) EXIM bank; e) NABARD

26. Which among the following do not pertain to current assets of any firm?
a) Cash balance; b) Bank balance; c) Stock of goods; d) Land and buildings; e) Sundry debtors

27. Post offices in India are having deposit and investment schemes like commercial banks in India and out of the
following such schemes, which is the odd man out?
a) Kisan credit card; b) Kisan vikas patra; c) National savings certificate; d) Indira vikas patras; e) All the above

28. What do you mean by the term ALM in banking parlance?
a) Asset liability maintenance; b) Asset liability management; c) Asset liability manpower; d) Asset liability maturity; e) Asset
liability modernization

29. During the recent times, you had come across the following news headlines FIPB clears Jet-Ethiad deal with
riders and what do you mean by FIPB?
a) Foreign Industries promotion board; b) Foreign Investment Promotion board; c) Foreign Investment promotion bureau; d)
Federal Investment promotion board; e) Federal Industries promotion board

30. Measures to stabilize rupee must not hit growth Rajan Hours after the RBI said that stabilizing the battered
rupee is its priority Raghuram Rajam said the RBIs action in this regard must not hurt growth too much these
are the news you had come across in newspapers during recent times Raghuram Rajan functions as:
a) RBI deputy governor; b) RBI chief secretary; c) RBI Governor; d) Secretary to commerce ministry; d) None of the above

009
18

01. Global Trust Bank has been taken over by which among the following banks?
i) HDFC bank; b) ICICI bank; c) Corporation Bank; d) Oriental Bank of Commerce; e) Bank of India

02. When it comes to past and present governors of Reserve Bank of India, which among the following is odd man out?
a) M. Narasimhan; b) Dr. Manmohan singh; c) Dr. Y V Reddy; d) Dr. D V Subba rao; e) Pranab Mukerjee

03. Dr. D. Subba Rao is the present governor of Reserve Bank of India and who was his predecessor?
a) Dr. C. Rengarajan; b) Dr. Bimal Jalan; c) Dr Y V Reddy; d) S. Venkataramanan; e) R N Malhotra

04. Imperial Bank of India is presently called as:
a) Union Bank of India; b) State Bank of India; c) Bank of India; d) Punjab National Bank; e) Reserve Bank of India

05. Where is the headquarters of International Monetary Fund?
a) Washington DC; b) New York; c) Manila; d) Brussels; e) Geneva

06. What do you mean by ILFS?
a) Infrastructure leasing and financial services limited; b) India leasing and financial services Limited; c) International leasing
and financial services limited; d) International lending and financial services limited; e) None of the above

07. When it comes to scheduled commercial banks, which among the following is odd man out?
a) State bank of India and associates; b) Nationalised banks; c) Regional Rural banks; d) Foreign banks; e) Local area banks

08. On the recommendations of which of the following committees banks have been computerized?
a) Goiporia committee; b) Rangarajan committee; c) Narasimhan committee; d) Mitra committee; e) Manmohan committee

09. MICR bank code line on a cheque consists of besides the cheque or draft number, nine digits number. What do the
first three digits of this number denote?
a) Centre/city; b) Bank; c) Branch of a bank; d) Account category current account/savings bank/cash credit account; e) None
of the above

10. You are aware of MICR code available at the bottom of the cheque/draft and what the last three digits of a nine
digits number on a MICR band code line denote?
a) Centre/city; b) bank; c) Branch of a bank; d) Account category savings bank/current account/cash credit account; e) None
of the above

11. Can you say what do the middle three digits of a nine digits number on a MICR band code line denote?
a) Centre/city; b) bank; c) Branch of a bank; d) Account category current account/savings bank account/cash credit account;

12. Smart card has been introduced on the recommendations of which committee among the following?
a) Rangarajan committee; b) Panneerselvam committee; c) Saraf committee; d) Nayak committee; e) Goiporia committee

13. What is the alternative name for Credit card which is in use for availing various facilities through the banking
channel?
a) Pan card; b) Smart card; c) Electronic cheque; d) Electronic purse; e) Plastic money

14. Which committee has recommended introduction of electronic clearing service system in the banking channel?
a) Narasimhan committee; b) Rangarajan committee; c) Saraf committee; d) Pherwani committee; e) None of the above

15. What do you mean by a clearing house?
a) Collection centre for cheques and demand drafts; b) Pooling centre for excess currencies received from the branches; c)
Collection centre for collection of tax and other receipts; d) Collection centre for issuing debit and credit cards to customers;

16. When it comes to Non banking finance companies called as NBFCs, which category undertakes the acquisition of
securities and trading in such securities to earn a profit:
a) Investment company; b) Equipment leasing company; c) Hire purchase company; d) Mutual benefit financial company; e)
None of the above

19

17. Life Insurance Corporation of India came into force in the country on:
a) 01.09.1956; b) 01.09.1957; c) 01.09.1958; d) 01.09.1959 e) None of the above

18. EXIM bank was established in the country during the year:
a) 1982; b) 1972; c) 1983; d) 1984; e) None of the above

19. Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of
a) Employees; b) Senior citizens; c) Women depositors; d) Deposits in the names of minors; e) None of the above

20. You come across the term SMERA through various news channels and what is the main function of SMERA?
a) Share brokers; b) Financial consultants; c) Merchant bankers; d) Credit rating agencies; e) None of the above

21. What do you mean by D in the term called as FEDAI?
a) Derivative; b) Dealers; c) Division; d) Department; e) Distinction

22. You are aware of the existence of BCSBI can you provide the missing words in the term: BANKING _______and
______BOARD OF INDIA?
a) CODES AND SETTLEMENTS; b) CODES AND STANDARDS; c) COMPANIES AND STANDARDS; d) COMMITTEES AND SYSTEMS;
e) COMMISSIONS AND SELECTORS

23. The Chairman and Managing Director of any bank is appointed by whom among the following?
a) Respective banks through promotions; b) Reserve Bank of India; c) Government of India; d) Respective state government;
e) The bank managements in consultation with their unions

24. The process of conversion of money obtained illegally appear to have originated from legitimate sources is called
as:
a) Money capturing; b) Anti money laundering; c) Money laundering; d) Money exchanging; e) None of the above

25. What is the validity period of any cheque as at present ?
a) Four months; b) Six months; c) Three months; d) Five months; e) One year

26. You had recently opened a savings bank account with a bank and you have been issued with a cheque book and
which among the following are the parties connected to any cheque issue?
a) Drawer of the cheque; b) Drawee of the cheque; c) Payee of the cheque; d) All of the above; e) Details incomplete

27. You had recently joined Innovative bank and a customer has just presented a cheque favouring: Pay to Krishnan or
bearer. Krishnan represents which position among the following?
a) Drawee of the cheque; b) Endorser of the cheque; c) Drawer of the cheque; d) Payee of the cheque; e) Endorsee of the
cheque

28. In a cheque who is called as the drawer of the cheque?
a) The bank on whom the cheque has been issued; b) The accountholder who is writing the cheque; c) The person in whose
name the cheque has been issued; d) The person who encashes the cheque; e) The person who removes the cheque from
the cheque book

29. The banking laws committee was headed by whom among the following?
a) Rangarajan; b) Dr Manmohan singh; c) Goiporia; d) P V Rajamannar; e) Paneerselvam

30. When it comes to know your customer guidelines as applicable to banks, customers have been classified as detailed
below and which among the following is found to be irrelevant?
a) Low risk customers; b) Average risk customers; c) Medium risk customers; d) High risk customers; e) None of the above

010
20

01. When it comes to the primary functions of any bank which among the following is odd man out?
j) Accepting deposits from the public; b) Lending cash credit loans to the public; c) Lending agricultural loans to the public; d)
Lending loans to industries; e) Selling mutual fund products

02. When it comes to the secondary functions of any bank, which among the following is found to be irrelevant?
a) Selling gold coins; b) Accepting deposits; c) Selling mutual fund products; d) Selling insurance products; e) Providing
consultancy services

03. Which among the following is considered to be the subsidiary services of any bank?
a) Issue of demand drafts; b) Providing safe deposit locker facility; c) Providing safe custody service; d) All the above; e) None
of the above

04. What is the minimum period for which a fixed deposit can be accepted by any bank?
a) 7 days; b) 14 days; c) 15 days; d) 21 days; e) None of the above

05. Normally interest is paid on ____________basis in respect of fixed deposits
a) Quarterly; b) Half yearly; c) Annually; d) Monthly; e) 0n maturity

06. Cheque books are issued in respect of which among the following ?
a) Fixed deposit; b) Savings bank; c) Current account; d) Recurring deposit; e) (b) and (c) as above

07. You are aware that the backside portion of any cheque do not contain any details and is meant for recording
endorsements and in the case of non availability of space for making additional endorsements, a slip of paper is
attached to the cheque called as______________
a) Additional sheet; b) Extra sheet; c) Attached cheque leaf; d) Allonge; e) Endorsement sheet

08. What do you mean by TDS?
a) Tax deducted at source; b) Traditional development scheme; c) Transport development scheme; d) Tax development source;
e) Tax dedicated at source

09. The principal regulator of the capital market in the country is called as:
a) Insurance regulatory and development authority; b)Securities and exchange board of India; c) Reserve Bank of India; d)
National bank for agriculture and rural development; e) None of the above

10. Find the incorrect match among the following:
a) Reserve Bank of India Canara Bank; b) Securities and exchange board of India TCS Limited; c) Insurance Regulatory and
Development authority Life Insurance Corporation of India; d) Director general of foreign trade- Importer and exporter
code; e) State governments regional rural banks

11. When a customer maintains an account in his personal name, it is called as individual account and when he opens
an account in the name of a firm owned by him, it is called as____________________
a) Partnership account; b) Proprietorship account; c) Company account; d) Trust account; e) Business account

12. When a customer maintains an account in his personal name, it is called as individual account and when he opens
an account in the name of a firm owned by himself and another person, it is called as______________
a) Proprietorship firm; b) Partnership firm; c) Company account; d) Trust account; e) Joint account

13. Two parallel transverse lines on the face of the cheque is called as crossing and when the name of any bank is
included between the two lines, it is called as:
a) General crossing; b) Special crossing; c) Double crossing; d) Bank crossing; e) None of the above

14. Crossing has been defined in the following act:
a) Banking regulation act 1949; b) Reserve Bank of India, 1934; c) Indian companies act 1956; d) Negotiable Instruments act
1881; e) none of the above

15. When it comes to the facility of nomination available for various banking services, which is the odd man out among
the following?
a) Fixed deposit; b) Savings bank; c) Reinvestment deposit; d) Safe deposit locker; e) Housing loan

16. When it comes to the rights of equity share holders of any company, which among the following is not true?
a) The equity shareholders are entitled to dividends as declared by the company
b) Normally dividends are declared subject to the company earning any profits
c) Equity shareholders have voting rights
d) Equity shareholders are eligible to participate in the annual general meeting of the company and deliberate on the
discussions
21

e) They are eligible to get fixed dividends as per agreement

17. Which among the following are not considered to be the duties of any commercial bank in the country?
a) Collection of cheques and demand drafts; b) Transfer of money from one branch to another branch using RTGS and NEFT; c)
Providing automated teller machine facilities; d) Providing safe deposit lockers to the customers; e) Providing consultancy
services for the development of infrastructure like roads, industries etc.,

18. __________________is the concept under which banks can provide various types of services namely: deposits,
loans, safe deposit locker facilities, safe custody receipt facilities, selling of gold coins, provision of mutual fund
products and insurance products etc to the customers:
a) Extended banking; b) Broad banking; c) Wide banking; d) Universal banking; e) Global banking

19. When it comes to the regulatory functions of Reserve Bank of India, which among the following is not true?
a) Qualitative credit control; b) Open market operations; c) Maintenance of CRR and SLR; d) Credit authorization scheme; e)
Promotion of export through refinance facilities

20. When the requirements of any borrower is very huge, normally banks join together and lend the borrower on
sharing basis and this form of finance is called as:
a) Joint financing; b) Coordinated financing; c) Consortium advance; d) Collective finance; e) Cumulative finance

21. When an individual is willing to invest in shares of prominent companies, instead of sending demand drafts, he
avails the cheques issued in _________account wherein the cheque amount is blocked till such time the cheque is
cleared for debiting in the account:
a) Demat account; b) Current account; c) Cash credit account; d) ASBA account; e) Share investment account

22. When the bank concentrates more in __________________banking services, they prioritise lending for housing
loans, personal loans, educational loans and other consumer durables loan:
a) Wholesale banking; b) Retail banking; c) Universal banking; d) Commercial banking; e) Innovative banking

23. ____________is the provision of small loans to poor people especially women in rural and semi urban areas,
particularly in developing countries to help them engage in self employment and escape from the clutches of
poverty
a) Macro credit; b) Micro credit; c) Minute credit; d) Rural credit; e) Broad credit

24. _______________is a phase of dismal economic activity usually accompanied by rising unemployment and it is
usually defined by two successive quarters of negative gross domestic product growth and is considered to have
cyclic character
a) Inflation; b) Deflation; c) Recession; d) Violation; e) Saturation

25. In the case of ____________a bank in need of funds can keep government securities with Reserve Bank of India
against on the condition that the bank will repurchase the securities within a short period.
a) Reverse repo; b) Repo; c) Residual repo; d)Inflation; e) Deflation

26. _______________is an instrument in writing containing an unconditional order signed by the maker directing a
certain person to pay a certain sum of money only to or to the order of a certain person or to the bearer of the
instrument
a) Bill of entry; b) Bill of exchange; c)Promissory note; d) Documentary credit; e) None of the above

27. When the cheque is presented for payment to the banker for encashment, the banker insists the holder to sign on
the backside of the cheque and the signature of the holder on the backside of the cheque is called as:
a) Signing the cheque; b) Endorsement; c) Signature recording; d) Acknowledgment; e) None of the above

28. ___________possesses a computer chip which is used for data storage, processing and identification
a) Credit card; b) Smart card; c) Debit card; d) Electronic card; e) None of the above

29. ______________ is a cheque drawn by a bank on one of its branches or correspondent banks requesting the latter
to pay the specified sum of money to the person named in the instrument
a) Traveller cheque; b) Demand draft; c) Mail transfer; d) Letter of credit; e) Promissory note

30. A tradition of trust is the punchline of which bank among the following?
a) Canara bank; b) Bank of India; c) Central Bank of India; d) State Bank of India; e) Allahabad bank

011
22

01. When it comes to the financial markets available in our country, which among the following is
True?
k) Money market; b) Debt market; c) Forex market; d) Currency market; e) Capital market

02. When it comes to the money market instruments, which among the following is not true?
a) Treasury bills; b) Term money; c) Certificate of deposits; d) Corporate securities; e) Commercial paper

03. The bonds made available through the debt market in our country can be classified as:
a) Financial bonds; b) Public sector undertaking bonds; c) Corporate securities; d) All the above; e) None of the above

04. Which among the following is not under the control of central banking authority?
a) Monetary control; b) Management of government debts; c) Lender of last resort to banks; d) Banker to government; e)
Equity market and debt market supervision and control

05. The capital markets regulatory authority has supervision over:
a) Stock exchanges; b) Foreign institutional investors; c) Equity and debt raisers; d) Mutual funds; e) All the above

06. ______________maintain a register of share and debenture holders and process share and debenture allocation,
when issues are subscribed.
a) Mutual funds; b) Depositories; c) Registrars; d) Brokers; e) Stock exchanges

07. Find the correct match in respect of the following:
a) Chairman and managing director General manager Assistant general manager- Deputy general manager
b) General manager Assistant general manager Deputy general manager Chairman and managing director
c) Chairman and managing director Executive director General manager Deputy general manager
d) Chairman and managing director General manager Executive director Deputy general manager
e) Chairman and managing director Executive director General manager Assistant general manager

08. Find the correct order in respect of the following:
a) Head office Regional office Zonal office Branch
b) Head office Zonal office Regional office Branch
c) Regional office Zonal office Head office Branch
d) Head office Regional office Branch Zonal office

09. Cash reserve ratio is the __________deposit to be held by commercial banks with Reserve Bank of India
a) Voluntary; b) Mandatory; c) Optional; d) As decided by the chairman and managing director e) None of the above

10. Urban cooperative banks are controlled by______________and _________________
a) State government-RBI; b) NABARD RBI; c) SEBI RBI; D) Central government NABARD; e) NABARD state
governments

11. Leasing, hire purchase and bill discounting are the domain of_______________
a) Non banking companies; b) Mutual funds; c) Commercial banks; d) Development banks; e) None of the above

12. Non banking finance companies are licensed and supervised by the__________________and it prescribes that no
NBFC can operate without a valid license from the central banking authority
a) State governments; b) Finance ministry; c) Securities and Exchange Board of India ; d) RBI; e) Both and (d) as above

13. The Reserve Bank of India was constituted under the Reserve Bank of India act, _______and started functioning
with effect from 1
st
April_____________
a) 1934 1935; b) 1935-1934; c) 1944-1945; d) 1936-1937; e) None of the above

14. The overall money supply in the economy is controlled by the central bank through:
a) Money supply; b) Volume of bank credit; c) Cost of bank credit; d) All the above; e) None of the above

15. ____________is the standard rate at which Reserve Bank of India is prepared to buy or rediscount bills of
exchange or other eligible commercial paper from the banks
a) Base rate; b) CRR; c) Bank rate; d) Reverse repo; e) Repo rate

23

16. Reserve Bank of India has used other tools of regulation in the past; however, after the liberalization policy of 1991,
most of these tools have since been discontinued and are no longer used by Reserve Bank of India and these tools
are:
a) Credit rationing/allocation; b) Credit planning; c) Credit authorization scheme; d) Inventory and credit norms; e) All the
above

17. Which among the following are certain regulatory restrictions on lending by banks in terms of RBIs directives or
the Banking Regulation act, 1949:
a) No advance or loan can be granted against the security of the banks own shares or partly paid shares of a company
b) No bank should grant loans against certificate of deposits, fixed deposits issued by other banks
c) No bank should grant loans against money market mutual funds
d) All the above e) none of the above

18. Which among the following are the main tools of Reserve Bank of India?
a) Monetary control; b) Cash reserve ratio; c) Statutory liquidity ratio; d) Open market operations e) All the above

19. The Indian banking system is regulated in terms of the provisions
a) Reserve bank of India act 1934; b) Banking regulation act 1949; c) Companies act 1956; d) Negotiable Instruments act
1881; e) Both (a) and (b) as above

20. Reserve Bank of India is the central banking authority in our country and according to you which is the central
banking authority in United Kingdom?
a) Bank of London; b) Bank of England; c) Federal Reserve Bank; d) Bank of UK; e) None of the above

21. The central board of directors of Reserve Bank of India comprises ________governor; ________ deputy governors
and ____________directors
a) 1-4-15; b) 1-5-15; c) 1-3-15; d) 1-2-15; e) None of the above

22. New and reissuable currency notes are stored in _____________maintained by the commercial banks as agents of
Reserve Bank of India
a) Currency chests; b) Treasuries; c) Branches; d) Service units; e) Godowns

23. To control inflationary situation in the economy, RBI can increase one or more of these monetary tools:
a) CRR-SLR-BANK RATE; b) SLR-CRR-BASE RATE; c) CRR-SLR-REPO RATE; d) CRR-SLR-REVERSE REPO RATE; e) CRR-SLR-
BENCHMARKING PLR

24. When it comes to the following term namely- PLR what do you mean by L?
a) Liberalisation; b) Liquidity; c) Lending; d) License; e) Loan

25. The present days retail banking sector is characterized by which of the following basic features?
a) Multiple products; b)Multiple channels; c) Multiple customer groups; d) All the above; e) None of the above

26. Multiple customer groups - one among the basic features of retail banking sector comprises of
a) Consumer; b) Small business; c) Corporate; d) All the above; e) None of the above

27. When it comes to retail deposit products, which among the following is found to be irrelevant?
a) Recurring deposit accounts; b) Term deposit accounts; c) No frills accounts for common man; d) Depository services; e)
Senior citizen deposit accounts

28. Safe deposit locker a product offered in the Indian retail banking segment under:
a) Retail loan products; b) Retail deposit products; c)Retail services; d)Retail facilities; e) Retail comforts

29. When it comes to the fund based services, which among the following is not true?
a) Working capital finance; b) Short term finance; c) Bill discounting; d) Vendor financing; e) Export credit

30. Find the odd man out from the following when it comes to the value added services provided by commercial banks:
a) Tax collection; b) Syndication services; c) Real time gross settlement; d) Cash management services; e) Bank guarantees

012
24

01. The products offered by commercial banks in India can be classified into four major groups:
l) Fund based services; b) Non fund based services; c) Value added services; d)Internet banking services; e) All the above

02. Which among the following does not belong to the internet banking services provided by commercial banks?
a) Payment gateway services; b) Real time gross settlement; c) Supply chain management; d) Corporate internet
banking; e) Supply chain partners

03. Banks in the country provide preshipment finance in the form of _____________both in terms of rupees as
well as in foreign currencies to assist the exporters for manufacturing or packing the goods for export from the
country
a) Export packing credit; b) Export bill negotiation; c) Export LC confirmation; d) export bill purchase and discounting; e)
Rupee advance against export bills

04. When it comes to the requirements of importers from the commercial banks in the country which among the
following is not true?
a) Import letters of credit; b) Direct import bills; c) Import collection bill services; d) Arranging for buyers and suppliers
credit; e) Suppliers credit

05. _________________is a type of negotiable (transferable) financial instrument that is traded on a local stock
exchange of a country; however, represents a security, usually in the form of equity that is issued by a foreign
publicly listed company
a) Depository receipt; b) Commercial paper; c) Certificate of deposit; d) All the above; e) None of the above

06. The value of the loan amount under retail lending normally ranges between
a) Rs. 20000 to Rs. 1 crore; b) Rs 1 crore to Rs. 10 crore; c) Rs. 10 crore to Rs 100 crore; d) More than Rs. 100 crores; e)
none of the above

07. According to the information available it has been the experience of banks in the country in recent years under
retail lending that the following loans had the least level of impairment (defaults)
a) Home loan portfolio; b) Consumer loan portfolio; c) Vehicle loan portfolio; d) Personal loan portfolio; e) None of the
above

08. Overseas depository bank means which among the following:
a) A bank authorized by the issuing company to issue global depository receipts against issue of foreign currency
convertible bonds or ordinary shares of the issuing company
b) A bank authorized by the government to issue global depository receipts against issue of foreign currency convertible
bonds or ordinary shares of the issuing company
c) A bank authorized by the issuing company to issue global depository receipts against receipt of a foreign currency
d) A bank where deposits in foreign currencies can be made

09. When it comes to the term called as OTCEI, what do you mean by E?
a) Exchange; b) Environment; c) Environment; d) Entitlement; e) Enlistment

10. ______________is the ownership interest in a company of holders of its common and preferred stocks
a) Debenture; b) Bond; c) Equity; d) Treasury bill; e)None of the above

11. _____________________is a type of preference share where the dividend payable on the same accumulates, if
not paid and after a specified date, these shares will be converted into equity capital of the company

a) Preference shares; b) Cumulative preference shares; c) Cumulative convertible preference shares; d) Participating
preference shares; e) None of the above

12. A bond giving the investor the option to convert the bond into equity at a fixed conversion price is referred to
as _____________bond
a) Coupon bond; b) Zero coupon bond; c) Convertible bond; d) Conversion bond; e) None of the above

13. Commercial papers are money market instruments issued normally for a tenure of ___________days
a) Thirty days; b) Ninety days; c) Sixty days; d) 120 days; e) All the above

14. ________________________are those institutional investors who are generally perceived to possess an
expertise and the financial muscle to evaluate and invest in the capital markets
25

a) Qualified Institutional buyers; b) Share transfer agents; c) Certified institutional investors; d) Certified institutional
buyers; e)None of the above

15. Red herring prospectus is a prospectus
a) Which is issued in red colour; b) Which contains some clauses in red colour; c) Which does not have details of either
price or number of shares being offered or the amount of issue; d) All the above; e) None of the above

16. The issue of new securities to existing shareholders at ratio to those already held is known as
a) Preference shares; b) Rights shares; c) Bonus shares; d) Cumulative preference shares; e) None of the above

17. According to you, the main functions of SEBI are
a) Protecting the interests of investors in securities; b) Promoting the development of the securities market; c) Regulating
the securities market; d) All the above; e) None of the above

18. When it comes to the following term namely- IPO, what do you mean by P?
a) Provisions; b) Public; c) Private; d) Prudent; e) Pension

19. The _____________are the specified intermediaries who are required to display due diligence and ensure that
all the requirements of DIP are complied with, while submitting the draft offer document to Securities and
Exchange Board of India
a) Merchant bankers; b) Equity players; c) Share issuers; d) Securities dealers; e) None of the above

20. ______________This refers to the right of certain preference shareholders to participate in profits, after a
specified fixed dividend contracted for is paid
a) Preference shares; b) Cumulative preference shares; c) Participating preference shares; d) Preference shares; e) None
of the above
21. _________________are bonds issued by a company bearing a fixed rate of interest usually payable half yearly,
on specific dates and the principal amount repayable on a particular date on redemption
a) Security receipts; b) Government securities; c) Debentures; d) Treasury bills; e) Commercial paper

22. ____________________refers to a market where securities are traded after being initially offered to the
public in the primary market and/or listed on the stock exchange.
a) Security market; b) Secondary market; c) Stock market; d) Bond market; e) Debenture market

23. What do you mean by C in the term called as FMCG?
a) Customer; b) Consumer; c) Creditor; d) Country; e) None of the above

24. The short term bearer (upto ninetyone days) bearer discount security, issued by the government (through the
Reserve Bank of India) as a means of meeting its cash requirements is called as
a) Treasury bills; b) Commercial paper; c) Coupon bonds; d) Zero coupon bonds; e) Convertible bonds
25. When it comes to the following term FPO, what do you mean by F?
a) Further; b) Facility; c) Favour; d) Future; e) None of the above

26. In the ______________, the securities like shares and debentures are offered to the public subscription for the
purpose of raising capital or fund:
a) Secondary market; b) Primary market; c) Share market; d) Debenture market; e) None of the above

27. What do you mean by BRLM?
a) Book running lead managers; b) Bank running lead managers; c) Bank running liability managers; d) Bank running lead
management; e) None of the above
28. In the term called as AMFI, what do you mean by M?
a) Mutual; b) Money; c) Managing; d) Miscellaneous; e) None of the above

29. As per SEBI guidelines, any entity/person engaged in the marketing and selling of mutual fund products is
required to pass a certification test and obtain a registration number from whom the following?
a) Securities and Exchange Board of India; b) Association of Mutual Funds in India; c) National Stock Exchange; d) OTCEI;
e) Bombay stock exchange

30. The aim of balanced funds is to provide
a) Growth (capital appreciation) b) Regular income; c) Both growth and regular income; d) No such scheme; e) None of the
above

012
26

01. The products offered by commercial banks in India can be classified into four major groups:
m) Fund based services; b) Non fund based services; c) Value added services; d)Internet banking services; e) All the above

02. Which among the following does not belong to the internet banking services provided by commercial banks?
b) Payment gateway services; b) Real time gross settlement; c) Supply chain management; d) Corporate internet
banking; e) Supply chain partners

03. Banks in the country provide preshipment finance in the form of _____________both in terms of rupees as
well as in foreign currencies to assist the exporters for manufacturing or packing the goods for export from the
country
b) Export packing credit; b) Export bill negotiation; c) Export LC confirmation; d) export bill purchase and discounting; e)
Rupee advance against export bills

04. When it comes to the requirements of importers from the commercial banks in the country which among the
following is not true?
b) Import letters of credit; b) Direct import bills; c) Import collection bill services; d) Arranging for buyers and suppliers
credit; e) Suppliers credit

05. _________________is a type of negotiable (transferable) financial instrument that is traded on a local stock
exchange of a country; however, represents a security, usually in the form of equity that is issued by a foreign
publicly listed company
b) Depository receipt; b) Commercial paper; c) Certificate of deposit; d) All the above; e) None of the above

06. The value of the loan amount under retail lending normally ranges between
b) Rs. 20000 to Rs. 1 crore; b) Rs 1 crore to Rs. 10 crore; c) Rs. 10 crore to Rs 100 crore; d) More than Rs. 100 crores; e)
none of the above

07. According to the information available it has been the experience of banks in the country in recent years under
retail lending that the following loans had the least level of impairment (defaults)
b) Home loan portfolio; b) Consumer loan portfolio; c) Vehicle loan portfolio; d) Personal loan portfolio; e) None of the
above

08. Overseas depository bank means which among the following:
f) A bank authorized by the issuing company to issue global depository receipts against issue of foreign currency
convertible bonds or ordinary shares of the issuing company
g) A bank authorized by the government to issue global depository receipts against issue of foreign currency convertible
bonds or ordinary shares of the issuing company
h) A bank authorized by the issuing company to issue global depository receipts against receipt of a foreign currency
i) A bank where deposits in foreign currencies can be made
j) None of the above

09. When it comes to the term called as OTCEI, what do you mean by E?
b) Exchange; b) Environment; c) Environment; d) Entitlement; e) Enlistment

10. ______________is the ownership interest in a company of holders of its common and preferred stocks
b) Debenture; b) Bond; c) Equity; d) Treasury bill; e)None of the above

11. _____________________is a type of preference share where the dividend payable on the same accumulates, if
not paid and after a specified date, these shares will be converted into equity capital of the company

b) Preference shares; b) Cumulative preference shares; c) Cumulative convertible preference shares; d) Participating
preference shares; e) None of the above

12. A bond giving the investor the option to convert the bond into equity at a fixed conversion price is referred to
as _____________bond
b) Coupon bond; b) Zero coupon bond; c) Convertible bond; d) Conversion bond; e) None of the above

13. Commercial papers are money market instruments issued normally for a tenure of ___________days
b) Thirty days; b) Ninety days; c) Sixty days; d) 120 days; e) All the above

14. ________________________are those institutional investors who are generally perceived to possess an
expertise and the financial muscle to evaluate and invest in the capital markets
27

b) Qualified Institutional buyers; b) Share transfer agents; c) Certified institutional investors; d) Certified institutional
buyers; e)None of the above

15. Red herring prospectus is a prospectus
b) Which is issued in red colour; b) Which contains some clauses in red colour; c) Which does not have details of either
price or number of shares being offered or the amount of issue; d) All the above; e) None of the above

16. The issue of new securities to existing shareholders at ratio to those already held is known as
b) Preference shares; b) Rights shares; c) Bonus shares; d) Cumulative preference shares; e) None of the above

17. According to you, the main functions of SEBI are
b) Protecting the interests of investors in securities; b) Promoting the development of the securities market; c) Regulating
the securities market; d) All the above; e) None of the above

18. When it comes to the following term namely- IPO, what do you mean by P?
b) Provisions; b) Public; c) Private; d) Prudent; e) Pension

19. The _____________are the specified intermediaries who are required to display due diligence and ensure that
all the requirements of DIP are complied with, while submitting the draft offer document to Securities and
Exchange Board of India
b) Merchant bankers; b) Equity players; c) Share issuers; d) Securities dealers; e) None of the above

20. ______________This refers to the right of certain preference shareholders to participate in profits, after a
specified fixed dividend contracted for is paid
b) Preference shares; b) Cumulative preference shares; c) Participating preference shares; d) Preference shares; e) None
of the above
21. _________________are bonds issued by a company bearing a fixed rate of interest usually payable half yearly,
on specific dates and the principal amount repayable on a particular date on redemption
b) Security receipts; b) Government securities; c) Debentures; d) Treasury bills; e) Commercial paper

22. ____________________refers to a market where securities are traded after being initially offered to the
public in the primary market and/or listed on the stock exchange.
b) Security market; b) Secondary market; c) Stock market; d) Bond market; e) Debenture market

23. What do you mean by C in the term called as FMCG?
b) Customer; b) Consumer; c) Creditor; d) Country; e) None of the above

24. The short term bearer (upto ninetyone days) bearer discount security, issued by the government (through the
Reserve Bank of India) as a means of meeting its cash requirements is called as
b) Treasury bills; b) Commercial paper; c) Coupon bonds; d) Zero coupon bonds; e) Convertible bonds
25. When it comes to the following term FPO, what do you mean by F?
b) Further; b) Facility; c) Favour; d) Future; e) None of the above

26. In the ______________, the securities like shares and debentures are offered to the public subscription for the
purpose of raising capital or fund:
b) Secondary market; b) Primary market; c) Share market; d) Debenture market; e) None of the above

27. What do you mean by BRLM?
b) Book running lead managers; b) Bank running lead managers; c) Bank running liability managers; d) Bank running lead
management; e) None of the above
28. In the term called as AMFI, what do you mean by M?
b) Mutual; b) Money; c) Managing; d) Miscellaneous; e) None of the above

29. As per SEBI guidelines, any entity/person engaged in the marketing and selling of mutual fund products is
required to pass a certification test and obtain a registration number from whom the following?
b) Securities and Exchange Board of India; b) Association of Mutual Funds in India; c) National Stock Exchange; d) OTCEI;
e) Bombay stock exchange

30. The aim of balanced funds is to provide
b) Growth (capital appreciation) b) Regular income; c) Both growth and regular income; d) No such scheme; e) None of the
above

014
28

01. ____________________refer to a market place where investors can buy and sell stocks and
the price at which each buying and selling transaction takes place is determined by the market forces called as
demand supply for a particular stock
n) Stock markets; b) Commodity markets; c) Bullion markets; d) Deposit markets; e) None of the above

02. When it comes to the term called as CARE, what do you mean by R?
a) Revolution; b) Revenue; c) Return; d) Research; e) None of the above

03. What do you mean by CRISIL?
a) Commercial bank; b) Credit rating agency; c) Bank research institute; d) Information centre; e) None of the above

04. ______________provides financial services such as underwriting facilities, issue organizing, consultancy
services etc.
a) Commodity trading; b) Merchant banking; c) Merchant selling; d) Market trading; e) None of the above

05. Under the purview of Securities and Exchange Board of India, the central government has set up the Investors
Education and protection fund during the year 2001 and its functions are:
a) Educating and guiding investors; b) Protecting the interest of small investors from frauds and malpractices in the capital
market; c) Both (a) and (b) as mentioned above; d) Conducting training on investors education; e) None of the above

06. National Stock Exchange was incorporated during the year 1992 by
a) Industrial development bank of India; b) Industrial Credit and Investment Corporation of India; c) Industrial Finance
Corporation of India; d) All insurance corporations e) All the above

07. Similar to money market operations, debt market operations involve institutions, investors and corporate
bodies entering into transactions of high value in financial instruments like
a) Treasury bills; b) Government securities; c) Commercial papers; d) All the above; e) None of the above

08. S&P CNX Nifty is a well diversified _____stock index accounting for twentyone sectors of the economy and it is
used for a variety of purposes
a) 100; b) 50; c) 30; d) 75; e) 120

09. Nifty is used for a variety of purposes such as
a) Benchmarking fund folios; b) Index based derivatives; c) Index funds; d) All the above; e) None of the above

10. The BSE sensex is a value weighted index composed of ______largest and most actively traded stocks,
representative of various sectors on the Mumbai stock exchange
a) 30; b) 50; c) 60; d) 80; e) All the above

11. First share market in India was established in the country in
a) New Delhi; b) Chennai; c) Mumbai; d) Kolkatta; e) None of the above

12. In ________________account, the debtor is allowed to withdraw a certain amount on a given security and the
debtor withdraws the amount within this limit as per his requirement and also repays it and the interest is
charged by the bank on the amount actually withdrawn
a) Cash credit account; b) Overdraft account; c) Current account; d) Savings bank account; e) None of the above

13. Clients who have current account with the bank get the sanction to withdraw more money than is lying in the
said account and it is called as______________
a) Withdrawal facility; b) Cash credit; c) Overdraft; d) Convenient debit; e) None of the above

14. In order to allow people keep their gold and silver jewellery and other important documents, banks provide
____________at nominal rent
a) Safe custody services; b) Locker facilities; c) Safe utility services; d) Deposit servicing facilities; e) None of the above

15. _____________________ buy and sell foreign exchange and thus promote international trade
a) Savings banks; b) Foreign exchange banks; c) Multinational banks; d) All the above; e) None of the above

16. What is a scheduled bank according to RBI act 1934?
a) It must have a paid up capital and reserves of an aggregated value of at least Rs. 5 lakhs
b) It must satisfy the RBI norms that its affairs are not conducted in a manner detrimental to the interests of depositors
29

c) It must be a corporation and not a partnership or a single owner firm
d) All the above; e) None of the above

17. Which among the following is applicable in the case of non scheduled banks?
a) These are those banks of which the total capital is less than Rs. 5 lakhs
b) These are not included in the second schedule of the Reserve Bank of India
c) Reserve Bank has no specific control upon these banks; however, these banks have to send details of their business to
RBI every month
d) All the above e) None of the above

18. The head office of State Bank of India is located at
a) Chennai; b) Mumbai; c) Kolkatta; d) New Delhi; e) Bangalore

19. Which among the following are the principal objectives of nationalization?
a) Raising public confidence in banking system
b) Expansion of banking facilities in rural and sub urban areas
c) Reducing regional inequalities and helping the poor
d) Providing more credit to the priority sectors
e) All the above

a) The Dhanalakshmi Bank Limited; b) The Karnataka Bank Limited; c) The Ratnakar Bank Limited; d) The South Indian
Bank Limited; e) Kotak Mahindra Bank Limited

21. Which among the following are the main functions of foreign exchange banks?
a) Financing of exports trade; b) Financing of import trade; c) Financing of international trade; d) General banking
functions; e) All the above

22. Reserve Bank of India has opened various training centres at which among the following centers?
a) Bankers training college. Mumbai; b) College of Agricultural Banking, Pune; c) Reserve Bank Staff Training College,
Chennai; d) National Institute of Bank Management, Pune; e) All the above

23. Reserve Bank of India accepts deposits of which among the following?
a) Central government departments; b) State Government departments; c) Port Trusts d) All the above; e) None of the
above

24. Which among the following are the quantitative credit control measures adopted by RBI?
a) Bank rate; b) Differential rates of interest; c) Open market operations; d) Cash reserve ratio; e) All the above

25. Which among the following are the qualitative or selective credit control measures adopted by RBI?
a) Change in margin requirements on loans; b) Maximum limit of the loans; c) Rationing of credit; d) All the above; e)
None of the above

26. Reserve Bank of India generally reviews the monetary policy once in
a) Three months; b) Six months; c) Nine months; d) Ten months; e) None of the above

27. Reserve Bank of India is governed by which among the following acts?
a) Reserve Bank of India act 1934; b) Banking regulation act 1949; c) Companies act 1956; d) Foreign Exchange
regulation act 1973; e) Foreign exchange management act 1999

28. Reserve Bank of India was nationalized on:
a) 01.01.1949; b) 1.07.1955; c) 19
th
July, 1969; d) 15.04.1980; e) None of the above

29. The objective of monetary policy of Reserve Bank of India is to
a) Control inflation; b) Discourage hoarding of commodities; c) Encourage flow of credit into neglected sectors; d) All the
30. Reserve Bank of India in our country is managed by the central board of directors and presently this board
consists of
a) 20 members; b) 19 members; c) 22 members; d) 23 members; e) None of the above

015
30

1. What is a cheque?
(A) It is a negotiable instrument drawn by a person made payable to another person drawn on a bank
(B) It can be made payable to bearer or order
(C) It is a negotiable instrument made payable on a future date
(D) Both (a) and (b)
(E) None of the above
2. The crossing of a cheque denotes
(A) Placing the cheque in a crossed manner one above the other
(B) Drawing two transverse parallel lines on the face of the cheque
(C) The cheque, which is cancelled
(D) All of the above
3. An addition of the name of the bank across the face of the cheque means:
(A) Cheque can be paid across the counters of the bank named
(B) Cheque cannot be paid otherwise than to the bank whose name is mentioned across the instrument
(C) Both (i) and (ii)
(D) The name of the bank cannot be added
4. Endorsement of a cheque means
(A) Signature of the payee or holder on the back side of the cheque
(B) Handing over the cheque to other person
(C) Assigning the cheque to a third party
(D) An additional signature of the drawer on the face of the cheque
5. A customer is one who
(A) Visits the bank regularly
(B) Comes to meet the banks staff for inviting to a dinner
(C) Visits the bank for the purpose of conducting the transactions
6. A customer is having a savings bank account and the relationship the customer has with the bank is
(A) Creditor and Debtor
(B) Debtor and creditor
(C) Principal and agent
(D) Trustee and beneficiary
(E) Lessor and lessee
7. A customer is having a housing loan account with the bank and the relationship between the bank and the customer is that of
(A) Debtor - creditor
(B) Creditor - debtor
(C) Lessor - lessee
(D) Bailor bailee
(E) Principal - agent
8. When a bank accepts securities for safe custody from the customer, the relationship between the bank and its is customer is that of
(A) Debtor creditor
(B) Creditor - debtor
(C) Agent - principal
(D) Bailee Bailor
(E) Lessor and lessee
9. A bank sends some trade bills of a customer for collection to its Kolkatta branch and the relationship between the bank and the customer
is
(A) Creditor - debtor
(B) Agent - principal
(C) Bailor - bailee
(D) Debtor creditor
(E) Debtor - creditor
10. When a bank allots a safe deposit locker to a customer, the relationship between the bank and the customer is that of
(A) Debtor creditor
(B) Creditor debtor
(C) Lessor - lessee
(D) Bailor bailee
(E) Lessee - lessor
11. Money laundering refers to
(A) Bringing the money obtained by illegal means into the banking channels
(B) Converting the money into fixed assets
(C) Sending the money to a launderer
31

12. A merchant establishment, with reference to credit card transactions is
(A) Merchants where credit cards are sold
(B) Merchants who accept the credit cards towards payments for goods sold
(C) Merchants who lends money on credit basis
(D) Both (a) and (b)
13. Which one of the following group is termed as retail loans?
(A) Housing loans, personal loans, cash credit
(B) Personal loans, vehicle loans, housing loans
(C) Credit card dues, personal loans, crop loans
(D) Dairy loans, vehicle loans, housing loans
(E) Housing loans, crop loans, vehicle loans
14. Loans are given by the banks to the indiciduals and find the appropriate statement from among the following:
(A) Person who is above 18 years of age
(B) Persons of all ages
(C) Persons aged 18 years and above and of sound mind
(D) Persons aged between 18 years and 60 years
15. A housing loan is granted on the security of
(A) Hypothecation of the house financed
(B) Mortgage of the house financed
(C) Personal guarantee of the borrower
16. A vehicle loan is granted primarily on the security of:
(A) Personal guarantee of a person acceptable to the bank
(B) Collateral security of the borrowers house
(C) Hypothecation of the vehicle financed
(D) The security can be a house, vehicle or any other security
17. Personal loans are primarily granted considering:.
(A) The income of the borrowers and repaying capacity
(B) The worth of the third party security
(C) Generally given to all persons
(D) All the above
18. Asset classification means
(A) Classification of the assets based on the security value
(B) Classification of the assets based on the asset size
(C) Classification of the assets based on the irregularity in the account
19. A performing asset means:
(A) Assets placed for performing a ritual
(B) Assets, which generate income for the bank
(C) All assets of the bank
(D) Buildings which are strong and stable
20. What is a standard asset?
(A) An asset where the installment or interest is not outstanding for more than ninety days
(B) An asset, which do not have any installment or interest as due for more than ninety days
(C) Asset which is classified as such by Indian Standards Organisation
(D) An asset which has been certified as good by Standards and Poor

016
32

1. The regulatory authority for banks in India is
(A) Indian Bankers Association
(B) Reserve Bank of India
(C) Government of India
(D) All the above
2. Banking codes and standards are mainly aimed at:
(A) Promoting fair banking practices by setting minimum standards of service
(B) Increase transparency so that better understanding of what to expect from banks
(C) Encourage competition to achieve higher operative standards
(D) All the above
3. In the recent past, there has been an increase in the retail loan portfolio because of
(A) Rise in the income levels of middle class population
(B) Migration of workers from rural areas to cities and metros
(C) Increase in the number of credit cards and its usage
(D) All the above
4. A banking ombudsman scheme was formulated by Reserve Bank of India mainly to
(A) Redress the grievances or complaints arising out of the deficiency in the banking services
(B) The scheme is applicable to all commercial banks, its subsidiaries, Regional Rural Banks, Primary Cooperative banks appearing in the
second schedule of the RBI act
(C) The banking ombudsman is a person appointed by the Reserve Bank of India
(D) All the above
5. Which out of the following is not correct when it comes to negotiable instruments?
(A) Cheque
(B) Promissory note
(C) Bill of exchange
(D) Demand draft
(E) Currency note
6. Hypothecation charge is created as security in respect of
(A) Immovable assets of the borrower
(B) Movable assets of the borrower
(C) Both movable and immovable assets of the borrower
(D) The deposit receipts for which loans were granted
7. Mortgage is created in respect of
(A) Immovable assets of the borrower
(B) Movable assets of the borrower
(C) Both movable and immovable assets
(D) Vehicles and stock of goods
8. A bank is a financial institution which acts as
(A) Intermediary between the depositors and borrowers
(B) A blood bank for needy persons
(C) Shares and stocks are sold
(D) Bank can also goods like textiles and leather goods
9. A bank accepts deposits from
(A) General public
(B) Only from merchants
(C) Companies and institutions
(D) Only from professionals and housewives
(E) All the above
10. A bank helps in remitting money from
(A) One branch of the bank to another branch of the bank or another bank
(B) Only within the city where it is located
(C) It will not undertake such act
(D) One clerk of the branch to another clerk of the same branch
(E) None of these

11. A bank accepts instructions from its customers
(A) To supply them the groceries required
(B) To locate the lost goods
(C) To pay all utility bills and remit insurance premia
33

(D) All the above
(E) None of these
12. A bank also does
(A) Acceptance of taxes on behalf of the government
(B) Runs a chit fund
(C) Sells gold coins
(D) Both (a) and (c) above
13. A bank lends money for
(A) Agriculture, purchase of vehicles etc
(B) Doing speculative transactions
(C) Indulging in gambling activities
(D) For money laundering activities
14. A bank gives on rent
(A) Rooms for overnight staying in emergencies
(B) Computers and servers
(C) Both (a) and (b) as mentioned above
(D) Lockers for safekeeping
15. Complaint redressal mechanism is meant for
(A) Periodically checking the facilities available for customers
(B) Ensuring amenities for the staff and recovery agents
(C) To receive complaints from the affected customers and resolving them in a structured way
(D) To look after the welfare of recovery agents
16. The advantages of keeping the deposit with a bank are:
(A) Getting interest on the moneys kept with the bank
(B) To ensure safety of the money
(C) To take back as and when it is necessary
(D) All the above
17. Banks have to lend moneys mobilised as deposits:
(A) In order to generate income for paying interest on depositors
(B) In order to generate income for meeting its own operational expenses
(C) In order to generate profits for its shareholders
(D) All the abovementioned
18. A clean loan means
(A) Moneys lent after proper cleaning
(B) Moneys lent on pledge of securities
(C) Moneys lent without any security
(D) Both (b) and (c) as mentioned above
19. A secured loan means:
(A) Loans given for buying the securities
(B) Loans given for selling the securities
(C) Loans that are backed by the securities
(E) None of these
20. A term loan account where interest or instalment is not paid for two months is called as
(A) Nonperforming assets
(B) Out of order advances
(C) Within the order
(D) Performing assets

017
34

01. Which among the following are rural and urban employment programmes launched
in the country?
a) Employment guarantee scheme of Maharashtra; b) Training Rural Youth for self employment; c) Integrated rural
development programme; d) National rural employment scheme; e) All the above

02. What do you mean by the term called as SJSRY?
a) Swarna Jayanthi Rozgar Yojana; b) Swarna Jayanthi Shahari Rozgar Yojana; c) Swarna Jayanthi Special Rozgar Yojana; d)
Swarna Jayanthi Specialised Rozgar Yojana; e) None of the above

03. When it comes to the following term called as PAT, what do you mean by T?
a) Trade; b) Technology; c) Terminology; d) Tradition; e) Tax

04. Petroleum production is represented by which among the following revolutions?
a) Blue revolution; b) Black revolution; c) Golden revolution; d) Round revolution; e) Liquid revolution

05. Blue revolution represents which among the following?
a) Flower production; b) Fish production; c) River deepening; d) Water storage; e) None of the above

06. Oil seeds production is represented by which among the following revolutions?
a) Silver revolution; b) Evergreen revolution; c) Red revolution; d) Green revolution; e) Yellow revolution

07. When it comes to agricultural credit, there are two sources of credit available to farmers called as institutional
credit and non institutional credit and institutional credit is provided by which among the following?
a) Cooperative societies; b) Banks; c) Regional rural banks; d) NABARD; e) All the above

08. The non institutional credit available to farmers are:
a) Money lenders; b) Traders; c) Commission agents; d) Relatives and friends; e) All the above

09. Which among the following are Maharatnas in the country?
a) Oil and Natural gas corporation; b) Steel authority of India Limited; c) Indian Oil corporation Limited; d) National Thermal
Power Corporation Limited; e) All the above

10. Find the odd man out from the following groups:
a) Oil and Natural Gas corporation Coal India Limited Indian Oil Corporation Limited
b) Coal India Limited Indian Oil Corporation Limited Steel authority of India Limited
c) Indian Oil corporation Limited Steel authority of India Limited National Thermal Power Corporation Limited
d) National Thermal Power Corporation Limited Coal India Limited Indian Oil corporation Limited
e) Coal India Limited Bharat Electronics Limited Hindustan Aeronautics Limited

11. Power Grid Corporation of India Limited represents which among the following?
a) Maharatnas; b) Navaratnas; c) Miniratnas; d) Macroratnas; e) None of the above

12. The large scale industries available in the country are represented by which among the following?
a) Iron and steel industry; b) Cotton and synthetic textile industry; c) Paper industry; d) Automotive industry; e) All the above

13. Which are the different forms of foreign investments in the country?
a) Foreign collaboration; b) Inter governmental loans; c) Loans from international institutions; d) External commercial
borrowings; e) All the above

14. Foreign direct investments are not permitted in the case of
a) Retail trading; b)Lottery business; c) Gambling and betting; d) Chit fund business and nidhi company; e) All the above

15. Balance of trade means:
a) Imports exceeding exports in quantity; b) Imports exceeding exports in value; c) Exports exceeding imports in value; d)
Exports exceeding imports in quantity; e) All the above

16. The main foreign exchange reserves in the country are:
a) Foreign currency assets; b) Gold stock of Reserve Bank of India; c) Special drawing rights; d) Reserve tranche position; e)
All the above

17. What do you mean by FERA?
35

a) Foreign exchange regulation act; b) Foreign exchange remittances act; c) Foreign exchange returns act; d) Foreign exchange
revenue act; e) None of the above

18. When it comes to money market instruments, which among the following is not true?
a) Certificate of deposits; b) Commercial papers; c) 14 day treasury bills; d) 91 day treasury bills; e) Fixed deposit with a bank

19. When it comes to All India Financial Institutions, which among the following is not true?
a) Industrial Finance Corporation of India; b) Small Industries Development Bank of India; c) Tourism Finance Corporation of
India Limited; d) State Finance Corporation of India; e) Indusrial Development Bank of India

20. When it comes to various development banks in the country, which among the following is not true?
a) National Bank for agriculture and Rural Development; b) Small Industries Development Bank of India; c) Industrial
Investment Bank of India; d) National Housing Bank; e) IDBI bank

21. Uttar Pradesh stock exchange functions at which among the following places?
a) Lucknow; b) Kanpur; c) New Delhi; d) Allahabad; e) Varanasi

22. Which among the following is the latest stock exchange established in the country?
a) Cochin stock exchange Limited; b) Hyderabad Stock Exchange Limited; c) Madras Stock Exchange Limited; d) Bombay Stock
Exchange Limited; e) Coimbatore Stock Exchange Limited

23. Public distribution system was launched during the year 1967 to act as price support programme with the basic
aim to provide essential commodities like:
a) Rice; b) Wheat; c) Sugar; d) Edible oil; e)All the above

24. When it comes to opening a savings bank account with commercial banks, which among the following are not
permitted to open savings bank accounts?
a) Individuals; b) Trusts; c) Associations; d) Proprietorship firms; e) Hindu undivided family

25. India has different categories of commercial banks and which among the following is not one such category?
a) Private sector banks; b) Commodity banks; c) Public sector banks; d) Cooperative banks; e) Foreign banks

26. Karta relates to which among the following?
a) Proprietorship firm; b) Partnership firm; c) Hindu undivided family; d) Trust; e) Charitable institution

27. Securities and Exchange Board of India, the controller of capital markets imposed a restriction on money flow in
equity through P-notes and what is the full form of P-notes?
a) Permanent notes; b) Promissory notes; c) Purchase notes; d) Participatory notes; e) Private notes

28. Which of the following organizations/agencies has established a fund known as Investor Protection fund?
a) Securities and Exchange Board of India; b) National Bank for agriculture and rural development; c) Bombay stock exchange;
d) Ministry of health; e) None of the above

29. Among the following departments of Government of India, which department is helping banks in disbursement of
rural credit by the banks?
a) Railways; b) State Road Transports; c) Posts and Telegraphs; d) Ministry of health; e) None of the above

30. During many occasions, we come across the following term called as FII and what is the full form of FII?
a) Final Investment in India; b) Foreign Investment in India; c) Formal Investment in India; d) Fair Institutional Investment; e)
Foreign Institutional Investment

018
8

36

01. Which among the following are classified as scheduled commercial banks in our country?
a) Public sector banks; b) Private sector banks; c) Foreign banks; d) Regional rural banks; e) All the above

02. A scheduled commercial bank should comply with which of the following requirements?
a) It should have been included in the second schedule of RBI act 1934; b) It should have got licence to conduct banking
business as per Banking Regulation act 1949; c) It should have been registered either as a commercial bank or a cooperative
bank; d) all the above; e) None of the above

03. The public sector banks in our country comprise of which among the following?
a) Nationalised banks; b) State Bank of India and associate banks; c) Regional Rural banks; d) All the above; e) None of the
above

04. Nationalisation of banks took place in the country in two stages and during the first stage how many banks were
nationalized?
a) Fourteen banks; b) Sixteen banks; c) Twenty banks; d) Eighteen banks; e) Twentyone banks

05. During the second stage of bank nationalization, how many banks were nationalized in our country?
a) Six banks; b) Eight banks; c) Seven banks; d) Nine banks; e) All the above

06. The first stage of nationalization of banks in our country took place on:
a) 19.07.1970; b) 19.07.1969; c) 19.07.1980; d) 18.07.1969; e) None of the above

07. The second stage of nationalization of banks in our country took place on:

08. New Bank of India merged with which of the following banks?
a) Canara Bank; b) Bank of India; c) Central Bank of India; d) Punjab National Bank; e) None of the above

09. The total number of nationalized banks in our country as at present are:
a) Twenty; b) Twentyone; c) Twentytwo; d) Twentythree; e) Twentyfour

a) Central Bank of India; b) Punjab National Bank; c) Canara Bank; d) Indian Overseas Bank; e) Andhra Bank

a) Punjab and Sind Bank; b) Vijaya Bank; c) Corporation Bank; d) Indian Overseas Bank; e) Oriental Bank of Commerce

12. Which group among the following group is different from others?
a) Central Bank of India-Canara Bank Indian Overseas Bank; b) Canara Bank Bank of India Andhra Bank; c) Central Bank
of India Bank of India Corporation Bank; d) Bank of India Punjab National Bank Oriental Bank of Commerce; e)
Punjab National Bank- Canara Bank Vijaya Bank

13. Which among the following banks has changed its name to Axis Bank?
a) UTI Bank; b) Centurian Bank; c) Times Bank; d) Global Trust Bank; e) Bank of Punjab

14. Which is the recently established bank among the following?
a) Axis Bank Limited; b) Kotak Mahindra Bank Limited; c) Indus Ind Bank Limited; d) Development Credit Bank Limited; e) Yes
Bank Limited

15. Find the odd man out from the following?
a) Nainital Bank Limited; b) Karnataka Bank Limited; c) Federal Bank Limited; d) Tamilnadu Mercantile Bank Limited; e) HDFC
Bank Limited

16. Which among the following has merged with State Bank of India?
a) State Bank of Patiala; b) State Bank of Hyderabad; c) State Bank of Travancore; d) State Bank of Mysore; e) State Bank of
Indore

17. City Union Bank Limited has its headquarters at which among the following places?
a) Tuticorin; b) Chennai; c) Tiruchirapalli; d) Coimbatore; e) Kumbakonam

18. Which private sector bank has its headquarters at Tuticorin?
a) Karur Vysya Bank Limited; b) Tamilnadu Mercantile Bank Limited; c) City Union Bank Limited; d) Lakshmi Vilas Bank
Limited; e) Federal Bank Limited
37

19. Find the odd group from out of the following:
a) Karur Vysya Bank Limited-Tamilnadu Mercantile Bank Limited-Lakshmi Vilas Bank Limited
b) Lakshmi Vilas Bank Limited Tamilnadu Mercantile Bank Limited City Union Bank Limited
c) Tamilnadu Mercantile Bank Limited City Union Bank Limited South Indian Bank Limited
d) Karur Vysya Bank Limited Karnataka Bank Limited Federal Bank Limited
e) South Indian Bank Limited Tamilnadu Mercantile Bank Limited Kotak Mahindra Bank Limited

20. On 2-6-1806, the Bank of Calcutta was established in _____________and it was the first Presidency Bank during
the British Raj
a) Kolkatta; b) Chennai; c) Mumbai; d) Hyderabad; e) Jamshedpur

21. Commercial banks in the country accept the following deposits:
a) Demand deposits; b) Time deposits; c) Occasional deposits; d) Both (a) and (b) as mentioned above; e) None of the above

22. When it comes to time deposits, find the odd man out from the following:
a) Fixed deposit; b) Reinvestment deposit; c) Current deposit; d)Recurring deposit; e) None of the above

23. The minimum period for which a fixed deposit can be accepted in a commercial bank:
a) Seven days; b) Fifteen days; c) Thirty days; d) Fortyfive days; e) None of the above

24. The maximum period for which a term deposit can be accepted in a commercial bank is
a) 120 months; b) 60 months; c) 25 years; d) Twenty years; e) No such condition

25. Banks normally pay no interest in respect of the following accounts:
a) Savings bank; b) Fixed deposit; c) Current account; d) Recurring deposit; e) Reinvestment deposit

26. When it comes to fund based deposit accounts maintained with commercial banks, which among the following is
irrelevant?
a) Current account; b) Savings bank; c) Recurring deposit; d) Fixed deposit; e) Demat account

27. When it comes to negotiable instruments which are in use in commercial banks, which among the following is
found to be irrelevant?
a) Dividend warrants; b) Cheques; c) Deposit receipt; d) Demand drafts; e) Promissory notes

28. Which among the following are called as non negotiable instruments?
a) Money order; b) Postal order; c) Bank deposit receipt; d) Share certificate; e) All the above

29. Which among the following are called as semi negotiable instruments?
a) Bill of lading; b) Dock warrant; c) Carriers receipt; d)Letter of credit; e) All the above

a) Promissory note-bill of exchange-dividend warrant; b) Cheque demand draft promissory note; c) Bank draft-cheque-
dividend warrant; d) Cheque-money order-bank draft; e) Dividend warrant-promissory note-demand draft

019

38

01. What do you know by EXIM ?
b) Exports and Imports Board of India; b) Exports and Industries Bank of India; c) Exports and Imports Bank of India; d)
Exports and Industries Board of India; e) Exports and Imports Bureau of India

02. _________________operates various lending programmes for promotion of exports of engineering and capital goods
and related services from the country
a) Export and Import Bank of India; b) Export Import Corporation of India; c) Export ministry; d) Export conglomeration; e)
None of the above

03. National Housing Bank was established in the country on

04. The schemes for the purpose of mobilization of resources and extension of credit for housing are executed by:
a) National Housing Bank; b) National Housing Board; c) Housing Ministry d) Home Ministry; e) None of the above

05. Interest payable on savings bank accounts is regulated by the following:
a) Reserve Bank of India; b) Respective Banks; c) Either (a) or (b) as mentioned above; d) Government of India; e) None of
the above

06. Issue and management of currency in the country is done by
a) Finance Ministry in Government of India; b) Finance secretary- Government of India; c) Reserve Bank of India; d) Currency
Issuing authority Finance Ministry; e) None of the above

07. When it comes to issue of cheques in deposit accounts which among the following is not relevant?
a) Current account; b) Savings bank; c) Overdraft account; d) Cash credit account; e) Fixed deposit account

08. When it comes to various deposit schemes available in commercial banks, which among the following is odd man
out?
a) Current account; b) Savings bank; c) Recurring deposit; d) Fixed deposit; e) Demat accounts

09. When it comes to the deposit schemes which are repayable after an agreed period which among the following is
irrelevant?
a) Current account; b) Fixed deposit; c) Recurring deposit account; d) Reinvestment deposit; e) None of the above

10. Provision of financial services namely payments, remittances, savings, loans and insurance at affordable cost to
persons not yet provided the same is called as:
a) Financial upliftment; b) Financial inclusion; c) Financial guidance; d) Financial delivery; e) None of the above

11. Sale of insurance policy to a depositor is known as
a) Cross selling by banks; b) Cross insurance; c) Insure finance; d) Insurance sales; e) None of the above

12. Cheque return by the banks is called as:
a) Cheque dishonor; b) Cheque bouncing; c) Return of the cheque; d) All the above; e) None of the above

13. _______________is a security on immovable property for a deposit received by the banks
a) Mortgage; b) Hypothecation; c) Lien; d) Right off set of; e) Assignment

14. What do you mean by the term called as POS?
a) Point of sales; b) Popular Operation Service; c) Priority online service; d) Public online system; e) None of the above

15. Any alteration in the name of the payee, date of the cheque, amount mentioned in words or figures in any cheque is
called as:
a) Bad writing of the cheque; b) Material alteration; c) Manipulation; d) Material dislocation; e) None of the above

16. _______________is termed as off balance sheet item when it comes to the balance sheet of any bank
a) Guarantee; b) Fixed deposit; c) Agricultural loan; d) Land development loan; e) None of the above

17. What do you mean by the term called as IFSC code?
a) Indian financial scheme code; b) Indian financial system code; c) International finance system code; d) Indiscriminate
financial system code; e) None of the above
18. A bank accepts funds from the customers for various deposit schemes and invests the amount received in
government securities and such bank is called as:
a) Small bank; b) Local bank; c) Narrow bank; d) Limited bank; e) None of the above
39

19. While you are working as an officer in XYZ bank, a customer tenders a cheque dated: 10.04.2014 on 10.03.2014 and
as per the rules as prescribed in Negotialble Instruments act 1881, you have to return the cheque with the following
reason:
a) Stale cheque; b) Special cheque; c) Post dated cheque; d) Ante dated cheque; e) None of the above

20. What do you mean by the term called as OPL?
a) Opinion lease; b) Opinion letter; c) Online priority lease; d) Over productive lease; e) None of the above

21. Credits in foreign currency non resident account are permitted in foreign inward remittances and which among the
following are termed as foreign inward remittances in our country?
a) Foreign demand drafts; b) Foreign currency; c) Foreign traveler cheques; d) Transfer through online mode from bank branch
in a foreign country to a bank branch in India; e) All the above

22. Lessor and lessee are terms used in the case of which among the following transactions?
a) Safe deposit locker; b) Safe custody receipt; c) Agricultural loan; d) Foreign currency non resident deposit account; e) None
of the above

23. He is the share investor who is willing to utilize the situation when the market starts crashing:
a) Bull; b) Bear; c) Opportunist; d) Carrier; e) None of the above

24. You are having a savings bank account with ABC bank and on 03.04.2014, the account shows the balance of Rs.
10000.00; on 04.04.2014 Rs. 20000.00; on 05.04.2014 Rs. 30000.00 and in such a case Rs. 20000.00 is called
as
a) Middle balance; b) Neutral balance; c) Average balance; d) Nominal balance; e) None of the above

25. You are having one life insurance policy and you had remitted premium amount to the tune of Rs. 400000.00 and
while you approached ABC bank for a loan against the security of the said policy, the manager insisted you to
perform the following procedure:
a) Mortgage; b) Assignment; c) Hypothecation; d) Lien; e) Right of set off

26. Which among the following is odd man out when it comes to bullion items?
a) Silver; b) Gold; c) Platinum; d) Palladium; e) Diamond

27. While you wanted to avail a loan for purchase of a vehicle from a private financier, the financier insists you to
produce twenty cheques signed by you without writing any amount in words and figures and such cheque is called
as:
a) Signed cheque; b) Blank cheque; c) Open cheque; d) Unwritten cheque; e) None of the above

28. You are a whole sale dealer engaged in selling sarees and A purchases sarees worth Rs. 10.00 lakhs from you for
which he pays Rs. 500000.00 in cash and requests you to provide him a credit for 60 days for the balance amount
and the balance amount of Rs. 5.00 lakh reflects in your balance sheet as
a) Saree advance; b) Purchase due; c) Bills receivable; d) Sundry debtors; e) Both and (d) as mentioned above

29. You purchased machinery worth Rs. 10.00 lakhs for the textile unit owned by you two years back and the auditor
values the machinery as Rs. 7.00 lakhs at present and the balance amount of Rs. 3.00 lakhs is treated as:
a) Deductions; b) Discount; c) Depreciation; d) Devaluation; e) None of the above

30. Against an authorized capital of Rs. 100.00 crores, the company has issued an amount of Rs. 50.00 crores to the
public whereas the public subscribed for a total amount of Rs. 49.00 crores; however, amount received in cash was
to the tune of Rs. 48.00 crores only and the capital column in the balance sheet of the company shows an amount of
Rs. _________
a) 100.00 crores; b) 50.00 crores; c) 49.00 crores; d) 48.00 crores; e) None of the above

020

40

01. Normally while dealing with gold loans, the gold jewels against the security of which loans are granted are to be
examined for its genuineness and such examination is called in banking terms as:
c) Gold examination; b) Gold scrutiny; c) Gold verification; d) Gold appraisal; e) None of the above

02. You are willing to invest in one of the mutual fund schemes of a prominent mutual fund company and the scheme is
available for investment to the public for the period from 01.05.2014 to 14.05.2014 and the scheme is called as
a) Open ended scheme; b) Closed ended scheme; c) Fortnightly scheme; d) Two week scheme; e) None of the above

03. The rules regarding imports, exports, remittances to the foreign country, opening of non resident accounts etc. are
available according to which among the following as at present?
a) Foreign exchange regulation act; b) Foreign exchange management act; c) Foreign exchange guidance act; d) Foreign
exchange maintenance act; e) None of the above

04. Which among the following is called as mother of deposits?
a) Savings bank; b) Current account; c) Fixed deposit; d) Reinvestment deposit; e) None of the above

05. When it comes to Life Insurance Corporation of India, which among the following is found to be relevant?
a) Fire insurance; b) Llife insurance; c) Marine insurance; d) Burglary insurance; e) All the above

06. According to you which are the specific principles of an insurance?
a) Utmost good faith; b) Insurable interest; c) Indemnity; d) Proximate clause; e) All the above

07. When it comes to general insurance business undertaken by government owned insurance companies, which among
the following is odd man out?
a) Life Insurance corporation of India; b) Oriental Insurance company Limited; c) National Insurance company Limited; d) New
India assurance company Limited; e) United India Insurance company Limited

08. When it comes to the different kinds of risks faced by any commercial bank, which among the following is odd man
out?
a) Credit risk; b) Liquidity risk; c) Operations risk; d) Monetary risk; e) Market risk

09. When it comes to money market instruments, which among the following is odd man out?
a) Call money; b) Notice money; c) Reinvestment deposit account; d) Held till maturity; e) Yield to maturity

a) Canara bank Reserve Bank of India; b) Madras stock exchange- SEBI; c) Life insurance corporation of India IRDA; d)
United India Insurance company Limited IRDA; e) NABARD IRDA

11. What do you mean by D in the term called as: NDTL?
a) Demand; b) Decision; c) Directive; d) Direction; e) All the above

12. What do you mean by LAF?
a) Liquidity adjustment facility; b) Liquidity administration facility; c) Liquidity adjustment function; d) Liquidity adjustment
format; e) None of the above

13. Please expand WALR ?
a) Weighted average lending resource; b) Weighted average lending rate; c) Weighted average learning resource; d) Weighted
average lending reasoning; e) None of the above
14. ______________________in India will be owned and operated by non bank entities and from such machines a
customer from any bank will be able to withdraw money, but will need to pay a fee for the services
a) Biometric automated teller machines; b) White label automated teller machines; c) Automated teller machines; d)
Automated teller maintenance facility; e) None of the above

15. According to Basel III norms, which among the following represents one among the two components of tier I
capital?
a) Common equity tier I capital; b) Additional tier I capital; c) Both (a) and (b) as mentioned above; d) Supervisory control e)
None of the above

16. According to Basel III norms, which among the following is called as going concern capital?
a) Tier I capital; b) Tier II capital; c) Both the above; d) Supervisory control; e) Market discipline

17. Which among the following is treated as debt capital instrument?
41

a) Perpetual non cumulative preference shares; b) Equity shares; c) Commercial paper; d) Certificate of deposits; e) Treasury
bills

18. What do you mean by CRAR?
a) Capital to risk weights assets ratio; b) Capital to risk weights assets rationing; c) Capital to risk weights administration rate;
d) Capital to risk weights assets relationship; e) None of the above

19. When it comes to insurance business undertaken by various insurance companies in the country which is not
applicable?
a) Equity; b) Term; c) Whole life; d) Endowment; e) None of the above

20. The total number of regional rural banks in the country as on date:
a) Eightytwo; b) Eightythree; c) Eightyfour; d) Eightysix; e) None of the above

21. Reserve Bank of India was nationalized under transfer of public ownership act during the year:____________

22. The affairs of Reserve Bank of India are regulated by the following:
a) Government of India; b) Finance Ministry; c) Central board of directors; d) Chairman and managing director; e) None of the
above

23. When it comes to issue of currency notes by Reserve Bank of India, which among the following is found to
irrelevant?
a) One rupee note; b) Two rupees note; c) One thousand rupees note; d) Five hundred rupees note; e) Five rupees note

24. When it comes to the legal tenders for acceptance of coins and currency notes by the public which among the
following is odd man out?
a) 20 paise coin; b) Two rupee coin; c) 50 paise coin; d) One rupee coin; e) Both (a) and (c) as mentioned above

25. Which among the following are the credit control measures adopted by Reserve Bank of India?
a) Regulation of cash reserves of commercial banks; b) Regulating the flow of credit; c) Qualitative control; d) Open market
operations; e) All the above

26. Which among the following are treated as scheduled commercial banks in the country?
a) State Bank of India and associate banks; b) Nationalized banks; c) Private sector banks; d) Regional rural banks; e) All the
above

27. The central board of directors of Reserve Bank of India consist which among the following?
a) Governor; b) Four deputy governors; c) Fifteen directors; d) All the above; e) Finance Ministry-Government of India

28. Industrial Finance Corporation of India is a
a) Commercial bank; b) Development bank; c) Cooperative bank; d) Regional rural bank; e) Foreign exchange bank

29. Among the following institutions, who is involved in the development of industrial finance?
a) Industrial Finance Corporation of India; b) Small Industries Development Bank of India; c) Industrial Investment Bank of
India; d) all the above; e) None of the above

30. The operations of Industrial Finance Corporation of India are
a) Project finance; b) Financial services; c) Corporate advisory services; d) All the above; e) None of the above

021

42

01. Industrial Investment Bank of India was set up during the year 1971 for rehabilitation of sick industrial companies
as_____________________under IRBI act 1984
d) Industrial Refinance Corporation of India; b) Industrial Reconstruction Bank of India; c) Industrial Reconstruction Board of
India; d) Industrial Refinance Bank of India; d) None of the above

02. The new private sector banks were formed as per RBI guidelines with effect from ____________

03. Which among the following are applicable in the case of new private sector banks in the country which were
established as per RBI guidelines 1993?
a) They were registered under companies act 1956; b) They were included in the second schedule of RBI act, 1934; c) They got
license for conducing banking business as per Banking Regulation act 1949; d) The minimum paid up capital of the bank
should be Rs. 100 crores; e) All the above

04. Regional Rural banks were established in the country for the purpose of development of rural economy by providing
credit and other facilities for the purpose of development of
a) Agriculture; b) Trade, commerce and industry; c) Productive activities in rural areas; d) All the above; e) None of the above

05. Local area banks were established in the country during:

06. Local area banks are promoted by
a) Individuals; b) Corporate entities; c) Trusts; d) Societies; e) All the above

07. The area of operation of local area bank shall be a maximum of ____________geographically contiguous districts
a) Two; b) Three; c) Four; d) Five; e) All the above

08. Investment company is one among several NBFC companies performing the following functions:
a) Undertaking equipment leasing or the financing of such activity; b) Engaged in hire purchase transaction or the financing of
such transactions; c) Providing finance by making or loans or otherwise for any activity than its own; d) Acquisition of
securities and trading in such securities to earn a profit; e) Acquisition of construction of houses including the acquisition or
development of plots of land.

09. NABARD was established in the country during the year:

10. The principal financial institution which is established for the purpose of financing, facilitating and promoting
Indias foreign trade in the country is called as:
a) EXIM; b) NABARD; c) SIDBI; d) IIBI; e) IFCI

11. The rate of inflation increases when the purchasing power of money
a) Increases; b) Decreases; c) Stabilizes; d) Spreads; e) None of the above

12. Interest payable on savings bank account is now calculated by the banks on which among the following methods?
a) Daily product basis; b) Monthly product basis; c) Weekly product basis; d) Fortnightly product basis; e) None of the above

13. A centralized data base with online connectivity to branches through internet as well as automated teller machines
and has been adopted by all major banks in the country is known as:
a) Customized banking services; b) Core banking solutions; c) Core branch solutions; d) Core banking systems; e) Core
Banking Structure

14. When it comes to money market instruments, which among the following is odd man out?
a) Commercial paper; b) Certificate of deposit; c) Shares; d) Bonds; e) Repurchase agreement

15. With a view to facilitate payment of balance in the deposit account to the person named by the depositor without
any hassles in the event of death of the accountholder, the facility which has been introduced for bank accounts in
the country is known as:
a) Claim settlement; b) Nomination; c) Speedy disposal; d) Fast proposal; e) None of the above

16. The bank branches which can undertake foreign exchange business directly are known as
a) Approved dealers; b) Approved agents; c) Authorized persons; d) Authorized dealers; e) None of the above

17. The insurance cover for the bank deposits in the country is provided by
43

a) Deposit Insurance and Credit Guarantee Corporation; b) Export Credit Guarantee Corporation; c) General Insurance
Corporation; d) Life Insurance Corporation of India; e) None of the above

18. When it comes to the term known as CRISIL, what do you know by- C?
a) Credit; b) Commercial; c) Common; d) Coverage; e) None of the above

19. CRR and SLR are related to
a) Commodities market; b) Banking industry; c) Mutual fund industry; d) Money market; e) Capital market

20. When it comes to the primary function of any banks, which among the following is odd man out?
a) Accepting deposits from the public; b) Providing credit facilities to the borrowers; c) Providing safe deposit locker facilities;
d) Providing remittance services; e) Facilitating import of goods

21. The correct meaning for the term REPO is
a) Rate for borrowing rupees by banks from RBI; b) Rate for borrowing rupees by RBI from banks; c) Rate for borrowing rupees
by banks from the public; d) Rate for borrowing rupees by one nationalized bank from another nationalized bank; e) None of
the above

22. When it comes to the various functions undertaken by the commercial banks, which among the following is
irrelevant?
a) Providing project finance; b) Settlement of payments on behalf of the customers; c)Issuing debit cards to the customers; d)
Providing services such as locker facilities and remittance services; e) Deciding policy rates like CRR

23. The right to stop payment of the cheque before it is paid rests with
a) Drawer; b) Drawee; c) Payee; d) Holder; e) Endorsee

24. When it comes to the different parties to a cheque, which among the following is found to be irrelevant?
a) Drawer; b) Drawee; c) Payee; d) Holder; e) Nominee

25. The credit risk to the bank is high from which among the following cards?
a) Credit cards; b) Smart cards; c) Debit cards; d) Pan cards; e) None of the above

26. When it comes to the various sources of finance for any commercial bank, which among the following is odd man
out?
a) Capital; b) Borrowings from RBI; c) Deposits accepted from the public: d) Cash reserves with RBI; e) Call money borrowings

27. The rate at which the domestic currency can be converted into foreign currency and vice versa is known as
a) Exchange rate; b) Commission rate; c) Conversion rate; d) Repo rate; e) Reverse repo rate

28. When it comes to various deposit accounts maintained by any commercial bank, which among the following groups
is odd man out?
a) Current account- savings bank recurring deposit; b) Recurring deposit-fixed deposit-current account; c) Current account-
savings bank-cash credit account; d) Savings bank-fixed deposit-recurring deposit; e) Fixed deposit-current account-savings
bank

29. The minimum amount that can be remitted using RTGS is
a) Two lakhs; b) Three lakhs; c) Four lakhs; d) Five lakhs; e) None of the above

30. The commercial paper may be issued in multiples of Rupees___________lakhs subject to the minimum size of an
issue to a single investor being Rs. ___________lakhs
a) 5 5; b) 10 10; c) 5 10; d) 10 15; e) None of the above

022

44

01. Monetary policy as an arm of the economic policy is administered by
e) Reserve Bank of India; b) Insurance Regulatory and Development Authority; c) Securities and Exchange Board of India; d)
All the above; e) None of the above

02. The reserves which can act as a liquidity buffer for commercial banks during crisis times are known as
a) CRR; b) SLR; c) Repo; d) Reverse Repo; e) Both (a) and (b) as mentioned above

03. The validity period of a cheque as at present is
a) Four months; b) Three months; c) Six months; d) One year; e) None of the above

04. Effective from 15.04.1980_________banks with demand and time liabilities exceeding Rs. ____crores were
nationalized
a) 6 100; b) 6-200; c) 6-300; d) 6-500; e) None of the above

05. The Unit trust of India came into existence in the country from

06. Securities and Exchange Board of India was established in the country during

07. When it comes to the Indian financial system which comprises of three components, which among the following is
odd man out?
a) Financial assets; b) Financial markets; c) Financial intermediaries; d) All the above; e) Financial conglomerates

08. The primary securities are those securities which represent financial claims against real sectors and the real sectors
represent which among the following:
a) Bills; b) Bonds; c) Shares; d) Book debts; e) All the above

09. The main financial instruments of corporate sector are
a) Shares; b) Debentures; c) Public deposits; d) Loan from the institutions; e) All the above

10. Mutual funds fall within the supervisory purview of
a) Insurance Regulatory and development authority; b) Securities and Exchange Board of India; c) Reserve Bank of India; d)
Bombay stock exchange; e) National stock exchange

11. A term loan is treated as short term when the repayment period of the loan is
a) Upto 36 months; b) 37 to 84 months; c) Above 84 months; d) Up to 12 months; e) None of the above

12. When the repayment period of any term loan is from 37 to 84 months, it is called as
a) Short term loan; b) Medium term loan; c) Long term loan; d) Central term loan; e) None of the above

13. Laxmi commercial bank merged with which among the following banks?
a) Canara Bank; b) Indian Bank; c) Punjab National Bank; d) Central Bank of India; e) Bank of India

14. XYZ bank granted a vehicle loan against the security of one Maruti alto for an amount of Rs. 10.00 lakhs and the risk
associated with the loan is
a) Market risk; b) Operations risk; c) Credit risk; d) Liquidity risk; e) None of the above

15. On 10.04.2014, the employees of ABC bank went on strike by 11.00 A.M. and the bank was in a position to face
a) Market risk; b) Operations risk; c) Credit risk; d) Liquidity risk; e) None of the above

16. When it comes to operations risk faced by any bank, which among the following activities is found to be irrelevant?
a) Employees proceeding on mass leave; b) Automated teller machine is out of order; c) Delayed transactions on account of
poor internet connectivity; d) Repayments not forthcoming in many loans disbursed by the bank; e) Employees finding it
difficult to work on account of power failure

17. When the state government has decided to concentrate more in agriculture production, it is called as
a) White revolution; b) Green revolution; c) Blue revolution; d) Green revolution; e) Yellow revolution

18. Global trust bank was taken over by which among the following banks?
a) Oriental Bank of Commerce; b) Punjab National Bank; c) Central Bank of India; d) Bank of India; e) Corporation Bank

19. Find the odd man out from the following
45

a) Times Bank; b) Global Trust Bank; c) Bank of Punjab; d) Bank of Karad; e) Kotak Mahindra Bank Limited

20. Which among the following is considered as hot money?
a) NRI deposits; b) Corporate deposits; c) New currency notes made available from Nasik Printing Press; d) Deposits obtained
from senior citizens; e) None of the above

21. The instrument issued in a country other than the country of the currency of the bond is called as
a) Euro bond; b) Dollar bond; c) Sterling bond; d) Rupee bond; e) None of the above

22. The symbol $ represents which among the following currencies?
a) Euro; b) US dollar; c) Sterling pound; d) Australian dollar; e) Canadian dollar

23. Banking regulation act 1949 does not apply to which among the following?
a) Primary agricultural credit societies; b) Nationalized banks; c) Regional rural banks; d) Private sector banks; e) Local area
banks

24. As per the provisions of section 12 of the Banking Regulation act 1949, the minimum ratio between the authorized,
subscribed and paid up capital of a banking company should be:
a) 4:2:1; b) 4:3:2) c) 4:3:1; d) 4;2;0.5; e) None of the above

25. When it comes to the term known as FDMA, what do you know by D?
a) Division; b) Department; c) Decision; d) Derivative; e) None of the above

26. When it comes to the various terms related to money market, which among the following is found to be irrelevant?
a) Call money; b) Notice money; c) Term money; d) Held till maturity; e) Fixed deposit

27. Under __________money market, funds are transacted on overnight basis and under __________money, market
funds are transacted for the period between two days and 14 days
a) Call Notice; b) Notice Call; c) Term Notice; d) Term Call; e) Notice Term

28. The participants in call/notice money market currently include
a) Banks; b) Primary dealers; c) Development finance institutions; d) Insurance companies; e) All the above

29. ____________________are negotiable instruments drawn by the seller or drawer of the goods on the buyer or
drawee of the goods for the value of the goods delivered
a) Bills of exchange; b) Cheques; c) Demand drafts; d) Promissory notes; e) None of the above

a) CARE; b) CRISIL; c) SMERA; d) ICRA; e) SSSBE

01. Together we can is the punchline of
f) Canara Bank; b) Punjab National Bank; c) Central Bank of India; d) Bank of India; e) Union Bank of India
023
2

46

02. The punchline of Bank of Baroda is
a) Indias international bank; b) For all your needs; c) A tradition of trust; d) One family one bank; e) Relationship beyond
banking

03. Build a better life around us is the punchline of
a) Central Bank of India; b) Punjab National Bank; c) Bank of India; d) Union Bank of India; e) State Bank of India

04. The punchline of Corporation Bank is
a) Prosperity for all; b) Trusted family bank; c) Your tech friendly bank; d) Good people to grow with; e) Where every
individual is committed

05. The name you can bank upon is the punchline of
a) Punjab and Sind Bank; b) Syndicate Bank; c) United Commercial Bank; d) Punjab National Bank; e) Union Bank of India

06. The bank that begins with U is the punchline of
a) United Bank of India; b) Vijaya Bank; c) State Bank of India; d) State Bank of Hyderabad; e) State Bank of Mysore

07. Find the irrelevant match from the following:
a) Standard Chartered Bank United Kingdom; b) HSBC United Kingdom; c) Citi Bank Singapore; d) ABN AMRO bank
Netherlands; e) Bank of Ceylon- Srilanka

08. Which among the following endorsements are found to be invalid?
a) Endorsement after maturity of the instrument; b) Partial endorsement; c) Endorsement on a discharged instrument; d)
endorsement in the case of negotiation; e) All the above

09. A foreign traveler encashes travelers cheques for $1000 at Rs. 47.25 and it is a
a) Purchase transaction; b) Selling transaction; c) Negotiable transaction; d) Exchange transaction; e) None of the above

10. One rupee currency note bears the signature of the
a) Secretary Ministry of finance; b) Governor RBI; c) Deputy Governor RBI; d) Deputy Secretary Finance Ministry; e)
None of the above

11. In a balance sheet of any company, the profit earned is shown on the liabilities side in the form of
a) General reserve; b) Capital reserve; c) Capital; d) Net profit; e) None of the above

12. Cash balance is shown in the following head in the balance sheet
a) Long term liabilities; b) Long term assets; c) Short term liabilities; d) Short term assets; e) None of the above

13. Which among the following is treated as gross block in any balance sheet?
a) Land-buidling-machinery; b) Capital-reserves-long term borrowings; c) Sundry creditors-overdraft from the bank-provisions;
d) Cash balance-bank balance-sundry debtors; e) None of the above

14. ____________________was launched during the year 2006 to provide at least 100 days wage employment in rural
areas
a) Mahatma Gandhi National Rural Employment Guarantee act; b) Jai Prakash Rozgar Guarantee Yojana; c) Sampoorna Gramin
Rojgar Yojana; d) Shiksha Sahyog Yojana; e) National food for work programme

15. _____________________was launched during the year 2005 for the development of rural infrastructure including
six components-irrigation, water supply, housing, road, telephone and electricity
a) Bharat Nirman Programme; b) AAM admi Bhima Yojana; c) Sarva Shiksha Abyan; d) Indira Gandhi Old age pension scheme;
e) Rashtriya Swasthiya Bima Yojana

16. What do you mean by PMAC?
a) Primary market advisory committee; b) Primary market acceptance commission; c) Primary market acceptance committee;
d) Priority Market advisory committee; e) None of the above

17. A cheque is presented in an account; however, there is no sufficient balance to meet the same and the cheque will
be returned with which of the reasons as mentioned below?
a) Lower balance ; b)No balance; c) Insufficient funds; d) Refer to drawer; e) Less balance

18. Agriculture labourer is a labourer whose income from agriculture is more than
a) 50 percent; b) 40 percent; c) 30 percent; d) 60 percent; e) None of the above
47

19. Goiporia committee has made the following recommendations Commencement of employee working hours
should be __________minutes before the commencement of business hours
a) Twenty; b) Ten; c) Five; d) Fifteen; e) One hour

20. Bipartite settlements are registered under:
a) Industrial disputes act; b) Banking regulation act; c) Reserve Bank of India act; d) Bank nationalization act; e) None of the
above

21. Resident foreign currency accounts are made available for the following:
a) Non resident Indians; b) Persons of Indian origin; c) Home returned Non resident Indians; d) Both (a) and (b) as mentioned
above; e) Both (a) and (c) as mentioned above

22. A is having a current account with XYZ bank and his account shows a debit balance of Rs. 12000.00 and the banker
in such case is
a) Debtor; b) Creditor; c) Neither debtor nor creditor; d) Borrower; e) None of the above

23. What do you mean by PFRDA?
a) Pension Fund Regulatory and Development Authority; b) Pension fund regulatory and development administration; c)
Pension fund regulations and development administration; d) Pension fund regulations and development authority; e) None
of the above

24. When it comes to the term called as CRMPG, what do you know by C?
a) Counterparty; b) Commission; c) Committee; d) Capital; e) All the above

25. It is termed as the continual rise in the general level of prices and it is commonly expressed as an annual
percentage rate of change on an index number
a) Inflation; b) Recession; c) Deflation; d) Price rise; e) None of the above

26. Which of the following is known as market regulator in our country?
a) IBA; b) SEBI; c) AMFI; d) NSDL; e) None of the above

27. Many times, we read in the newspapers about NPA in banking terminology and what is the full form of NPA?
a) New performing avenues; b) Net performing average; c) Not presentable applications; d) Nonperforming assets; e)
Negotiable and preferential asset

28. Which of the following is not tax/duty levied by Government of India?
a) Income tax; b) Education Cess; 3) Service tax; d) Customs duty; e) Toll tax

29. Swayamsidha is a scheme launched by the Government of India in order to help
a) School children only; b) Health workers only; c) Women only; d) Senior citizens without any regular income; e) None of the
above

30. Many times we read in financial newspapers/magazines about Share swap done by big corporates and what do
you mean by Share swap?
x) A business takeover in which the acquiring company uses its own stock to pay for the acquired company
y) When a company uses its own shares to get some short term loan for working capital requirement, it is known as
share swap
z) When companies are required to float a new issue to earn capital for their expansion programmes each shareholder
gets some additional preferential shares. The process of the allotment of preferential share is known as share swap
a) Only x; b) Only y; c) Only x and y; d) Only z; e) None of the above

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48

01. PAN cards are issued by:
g) Commercial banks; b) Development banks; c) Insurance Regulatory and Development Authority; d) Securities and Exchange
Board of India; e) Income tax department

02. When it comes to the term called as BCSBI, what do you know by S?
a) Standards; b) Securities; c) Schedule; d) Structure; e) None of the above

03. Which among the following is not repayable after an agreed period?
a) Fixed deposits; b) Recurring deposits; c) Foreign currency non resident deposits; d) Resident foreign currency deposits; e)
Current account

04. Ramesh went to State Bank of India for transferring an amount of Rs. 2.00 lakhs from his savings bank account to
savings bank account of his brother, Varun with Canara Bank through RTGS and the bank demanded him to mention
IFSC code and the required IFSC code denotes which among the following:
a) Branch code of State Bank of India; b) Branch code of Canara Bank; c) Account code with State Bank of India; d) Account
code with Canara Bank; e) None of the above

05. Ganesh approached XYZ bank at Chennai for transferring an amount of Rs. 1.5 lakhs from his account to his friends
account with ABC bank at Kolkatta through RTGS and the bank was not willing to adhere to the request and
according to you what may be the reasons?
a) Amount cannot be transferred from XYZ bank to ABC bank; b) Amount cannot be transferred from Chennai to Kolkatta; c)
Amount can be transferred from one branch of XYZ bank to another branch of XYZ bank only and not otherwise; d) The
amount to be remitted is less than the minimum stipulated as per the system presently in force; e) None of the above

06. Ramesh and company purchased goods from Sharma and company for an amount of Rs. 20.00 lakhs for which the
firm had paid an amount of Rs. 10.00 lakhs in cash and had assured to pay the balance amount on credit terms
within 60 days and the amount payable by Ramesh and company to Sharma and company appears
as____________in the books of Sharma and company and as_______in the books of Ramesh and company.
a) Sundry Creditors-Sundry Debtors; b) Sundry debtors advance payment; c) Advance payment- Sundry creditors; d)
Advance receivable advance payable; e) Sundry debtors-Sundry Creditors

07. The account in which trading of shares etc. are recorded in electronic form is called as:
a) Current account; b) Savings bank account; c) Recurring deposit account; d) Demat account; e) Remat account

08. Mr Ramesh was having 100 shares of Infosys; 200 shares of Wipro and 300 shares of TCS Limited in electronic form
and he requested his banker to have 100 shares of Infosys in physical form and what do you mean by this?
a) Dematerialization; b) Rematerialisation; c) Demat; d) Remat; e) Either (b) or (d) as mentioned above

09. The banking companies act 1949 was enacted to consolidate and amend the law relating to banking companies with
effect from 01.03.1966 and the name of the act has been changed to
a) Banking registration act 1949; b) Banking regulation act 1949; c) Banking reconstruction act 1949; d) Banking Industries act
1949; e) All the above

10. Banking regulation act 1949 does not all apply to which among the following?
a) Regional rural banks; b) Scheduled cooperative banks; c) Natinalised banks; d) Cooperative land mortgage banks; e) None
of the above

11. NABARD extends refinance to which among the following?
a) State land development banks; b) State cooperative banks; c) Regional rural banks; d) Commercial banks; e) All the above

12. When it comes to the term called as SMERA, what do you mean the character R?
a) Revision; b) Reduction; c) Rating; d) Revenue; e) Return

13. Which among the following pertains to priority sector lending by commercial banks?
a) RDBMS; b) SMERA; c) CRISIL; d) CARE; e) SSSBE

14. The changing face of prosperity is the punchline of which among the following banks?
a) Lakshmi Vilas Bank Limited; b) Karur Vysya Bank Limited; c) South Indian Bank Limited; d) City Union Bank Limited; d)
None of the above

15. When it comes to the foreign banks which are having branches in the country, which among the following does not
pertain to United States?
a) Standard Chartered Bank; b) Cit Bank; c) JP Morgan chase bank; d) Bank of America; e) None of the above
49

16. ABN Amro Bank, a foreign bank having many branches in several cities in the country is having its headquarters in
the following country:
a) United Kingdom; b) United States of America; c) France; d) Netherlands; e) Taiwan

17. A cheque can be crossed by whom among the following?
a) Drawee; b) Drawer; c) Holder; d) Endorsee; e) All other parties except the party mentioned in (a)

18. According to you the date 01.02.1964 pertains to which among the following incidents?
a) Reserve Bank of India was established; b) Unit Trust of India was established; c) Exim bank was established; d) IRBI has
been been named as IIBI; e) Reserve Bank of India was nationalized

a) State Bank of Mysore; b) Canara Bank; c) Indian Bank; d) Indian Overseas Bank; e) Syndicate Bank

a) Indian Bank; b) Indian Overseas Bank; c) Bank of India; d) Punjab National Bank; e) Andhra Bank

a) Canara Bank; b) Bank of India; c) Andhra Bank; d) Corporation Bank; e) New Bank of India

a) State Bank of Hyderabad; b) Canara Bank; c) Punjab National Bank; d) Oriental Bank of Commerce; e) ICICI bank

a) Bank of India; b) State Bank of India; c) Corporation Bank; d) Pandiyan Gramin Bank; e) Axis Bank

a) Axis Bank Limited; b) HDFC Bank Limited; c) Kotak Mahindra Bank Limited; d) Lakshmi Vilas Bank Limited; e) Yes Bank
Limited

a) ICICI bank Limited; b) Kotak Mahindra Bank Limited; c) Yes Bank Limited; d) AXIS bank limited; e) HDFC bank Limited

a) Canara Bank; b) State Bank of Hyderabad; c) Oriental Bank of Commerce; d) Deutsche Bank; e) HDFC bank Limited

27. Regional Rural Banks were established in our country during the year ____________and there are
__________Regional Rural Banks in our country as at present:
a) 1975/82; b) 1985/85; c) 1976/82; d) 1985/82; e) None of the above

28. What do you mean by the following term called as: ICSID?
a) International Centre for settlement and Industrial disputes
b) International centre for standards and industrial disputes
c) International centre for settlement and Industrial decisions
d) Indian centre for settlement and industrial disputes

29. Securities and Exchange Board of India has control over____________and it was established during the
year__________
a) Money market 1988; b) Capital market 1989; c) Money market 1990; d) Insurance market 1990; e) Capital Market
1988

30. When it comes to development banks in the country, which among the following is found to be irrelevant?
a) IFCI; b) SIDBI; c) NABARD; d) IIBI; e) SSSBE

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h) Bombay stock exchange; b) National stock exchange; c) Over the counter stock exchange; d) Multicommodity exchange; e)
Magadh stock exchange

02. Magadh stock exchange is situated at which among the following centres?
a) Mangalore; b) Meerut; c) Patna; d) Kanpur; e) Vadodara

03. OTCEI has its headquarters at which among the following centres?
a) Chennai; b) Mumbai; c) Kolkatta; d) New Delhi; e) Bangalore

04. Chennai stock exchange is situated at Chennai; Bombay stock exchange is situated at Mumbai; Mangalore stock
exchange is situated at Mangalore and what is the name of the stock exchange which is functioning at Trivandrum
in the state of Kerala?
a) Kerala stock exchange; b) Trivandrum stock exchange; c) Gods beautiful country stock exchange; d) Western stock
exchange; e) Capital stock exchange of India of Kerala Limited

05. When it comes to non negotiable instruments which among the following is found to be irrelevant?
a) Money order; b) Postal order; c) Share certificate; d) Demand draft; e) Deposit receipt

06. When it comes to semi negotiable instruments which among the following is found to be irrelevant?
a) Bill of lading; b) Carriers receipt; c) Dock warrant; d) Railway receipt; e) Share warrant

07. When it comes to negotiable instruments which among the following is found to be irrelevant?
a) Promissory note; b) Bill of exchange; c) Cheque; d) Demand draft; e) Deposit receipt

a) Postal order deposit receipt money order; b) Promissory note cheque bank draft; c) Bill of lading railway receipt
wharefingers certificate; d) Bill of lading promissory note airway bill; e) Bill of exchange dividend warrant share
warrant

09. When it comes to various types of hundis which among the following is payable immediately on demand?
a) Mitti hundi; b) Dhani jog hundi; c) Khaka hundi; d) Khoti hundi; e) Dharshani hundi

10. Jawabi hundi pertains to which among the following?
a) It is payable after the expiry of some period; b) It is payable only to person named in the hundi; c) It is a defective hundi; d)
It is payable to holder or bearer; e) It invites acknowledgment from the person on acceptance

11. Ramesh was in receipt of certain documents consisting of a hundi among others and he found that the hundi was
cut into two pieces and the banker was not acceptable to the hundi because it is a
a) Nam jog hundi; b) Mitti bundi; c) Jawabi hundi; d) Khoti hundi; e) None of the above

12. When a person avails any loan against the security of Life insurance policy, it is said to be under
a) Assignment; b) Mortgage; c)Lien; d) Hypothecation; e) Pledge

13. The person named in the will to receive the properties in the will after the death of the person who is writing the
will
a) Executor; b) Administrator; c) Writer; d) Dawer; e) None of the above

14. The following are the parties to a bill of exchange
a) Drawer; b) Drawee; c) Payee; d)All the above; e) None of the above

15. Canara Bank at Chennai is opening an account with Bank of America at Washington; Bank of America at New York
is opening an account with State Bank of India at New Delhi and Deutsche Bank at Bonn is opening an account
with Bank of England in London and how do you relate the above among the following?
a) NOSTRO LORO VOSTRO; b) VOSTRO LORO NOSTRO; c) NOSTRO VOSTRO LORO; d) LORO VOSTRO NOSTRO;
e) none of the above

16. When a company wants to open an account with any commercial bank in the country, they are in a position to
produce the copies of certain documents and which among the following is found to be irrelevant?
a) Certificate of incorporation; b) Memorandum of association; c) Board resolution; d) Articles of association; e) Partnership
deed

17. When it comes to low risk customers according to KYC guidelines, which among the following is found to be
irrelevant?
51

a) Salaried customers; b) Government departments; c) Regulatory and statutory bodies; d) Non resident customers; e)
Government owned companies

18. When it comes to medium risk clients according to KYC guidelines, which among the following is found to be
irrelevant?
a) High networth individuals; b) Blind persons; c) Pardhanashin women; d) High net worth Non resident Indians; e) Non
resident Indians

19. When it comes to high risk clients according to KYC guidelines, which among the following is found to be not in
order?
a) Trusts; b) Charitable institutions; c) Sleeping partners; d) High networth individuals; e) Bullion and jewellery dealers

20. Find the correct order for the following clients pertaining to ABC bank: salaried customers- bullion and jewellery
dealers pardhanashin women:
a) High risk low risk medium risk; b) Low risk high risk medium risk; c) Medium risk low risk high risk; d) High risk
medium risk low risk; e) None of the above

21. Which among the following are considered to be direct agriculture activities undertaken by any commercial bank?
a) Finance to individual farmers; b) Self help groups; c) Crop production; d) Pre harvest and post harvest related activities; e)
All the above

22. When it comes to priority sector advances granted by any commercial bank, which among the following is found
to be irrelevant?
a) Loans to retail traders; b)Loans to professional and self employed persons; c)Loans to self help groups; d) Loans to SC/ST
beneficiaries; e) Vehicle loans availed by employees working in an IT company

23. You are using many currency notes for your day to day purchases and you notice the following in one thousand
rupee note namely; latest image; micro letterings; identification mark; intaglio printing etc. What do you mean by
the above?
a) Designs to attract the public; b) Security provisions; c) Competitive edge; d) To differentiate from other currency note; e)
None of the above

24. When it comes to the following term called as: ARWIND, what do you mean by the character: A?
a) Assurance; b) Administration; c) Arrangement; d) Assistance; e) Amenities

25. The currency in use in our country is called as Rupee and what is the name of the currency which is in use in
China?
a) Dollar; b) Pound; c) Ryal; d) Rupee; e) Yuan

26. The fradulant way of acquiring PIN number and bank passwords using email is called as
a) PIN capturing; b) Phishing; c) Forgery; d) Manipulation; e) None of the above

27. ______________is an instrument in the form of depository receipt created by a depository in India against
underlying equity shares of the issuing company
a) Indian depository receipt; b) American depository receipt; c) National depository receipt; d) Equity depository receipt; e)
None of the above

28. Which among the following assets are considered as near money?
a) Bonds; b) Time deposits; c) Equity shares; d) Travellers cheques; e) All the above

29. On perusal of the recent economic developments in the country you had come to know that the value of rupee had
come down and at one point of time the price of the rupee was Rs. 66.00 against one US dollar. When the value of
dollar increases against rupee, who among the following is benefitted?
a) Importer; b) Indian government; c) US government; d) Exporter; e)The authorized persons

30. When a large number of investors in a country transfer investments elsewhere because of disturbed economic
conditions, it is called as________________
a) Flight of capital; b) Movement of capital; c) External investments; d) Upcountry investments; e) None of the above

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52

01. Dirham is the currency of
i) Egypt; b) Saudi Arabia; c) Iran; d) UAE; e) Iraq

02. _________________refers to lending done by financing institutions including the banks to customers not meeting
with normally required credit appraisal standards
b) Subprime lending; b) Lending without security; c) Unethical lending; d) Retail lending; e) None of the above

03. Standard and Poor is a
a) Credit rating agency; b) Bank in United States; c) Bank in United Kingdom; d) Mutual fund company; e) Insurance
agency

04. Reverse mortgage scheme is beneficial for __________________for availing loan against immovable properties
a) Senior citizens; b) Employees working in IT companies; c) Employees working in banks; d) Employees working in state and
central governments; e) Business people

05. SARFAESI act was framed specially to deal more effectively with the problem of ___________________in the
banking system
a) Nonperforming assets; b) Loan recovery; c) Speedy disbursal of loan facilities; d) Educational loan defaulters; e) Agricultural
loan defaulters

06. The definition of banking has been well defined in which among the following acts?
a) Negotiable Instruments act 1881; b) Banking regulation act 1949; c) Reserve Bank act 1934; d) Companies act 1956; e)
None of the above

07. Ramesh who had completed plus two from a reputed school in the city, aged seventeen years hails from an affluent
family and he approaches ABC bank for a term loan of Rs. 10,00,000.00 against the security of house property
worth Rs. 2.00 crore in his name and the bank manager denied the loan facility for the following reasons:
a) Loan amount is more than the eligible limit; b) He is not a graduate; c) He is a minor; d) All the above; e) None of the above

08. _________________collect deposits from the general public and grant loans to the needy persons out of their own
funds as well as from deposits collected by them from the public and they are much popular in villages and small
towns
a) Local area banks; b) Regional Rural banks; c) Indigenous banks; d) Mini bankers; e) None of the above

a) Primary market- stock exchange; b) Secondary market old issues market; c) SEBI capital market; d) IRDA Life
Insurance Corporation of India; e) RBI Federal Bank

10. What do you mean by the term called as: CRMPG?
a) Counterparty Risk Management Policy Group; b) Counterparty Risk Maintenance Policy Group; c) Counterparty Risk
Management Principal group; d) Counterparty Ratio Management Policy Group; e) None of the above

11. When it comes to issue of various bonds for investments by the public by Post Offices in the country, which among
the following is found to be irrelevant?
a) Indira Vikas Patras; b) Kisan Vikas Patras; c) National savings certificates; d) All the above; e) Kisan Credit Card

12. Bank of Baroda is one among the top five nationalized banks in the country in terms of total business and the logo
of Bank of Baroda is termed as:
a) Baroda lion; b) Baroda King; c) Baroda sun; d) Baroda tiger; e) None of the above

13. The method which is used currently in the country to issue currency note is called as
a) Minimum issue system; b) Minimum reserve system; c) Minimum return system; d) Minimum exchange system; e) None of
the above

14. Which sections of people are covered under financial inclusion?
a) Marginal farmers; b) Landless labourers; c) Self employed persons and unorganized sector enterprises; d) Urban dwellers; e)
None of the above

15. Ramesh an employee working in IT company availed a car loan of Rs. 7.00 lakhs from ABC bank for which his car
was taken as _________security and a house valued at Rs. 20.00 lakhs was taken as______________security
a) Prime security interim security; b) Prime security collateral security; c) Prime security additional security; d) Main
security collateral security; e) None of the above

16. Which among the following are the main resources of Regional Rural Banks in the country?
53

a) Share capital; b) Deposits from the public; c) Borrowing from sponsoring banks; d) Refinance from NABARD; e) All the above

17. By virtue of the amendment carried out by the Regional Rural Bank (Amendment) act, 1987, the chairman of
Regional Rural Bank is to be appointed by sponsoring bank in consultation with________________
a) Reserve Bank of India; b) The state government; c) Central government; d) All the above; e) NABARD

18. Ramesh presented a cheque dated 19.09.2012 on 19.09.2013 to the banker and in this case the cheque is treated
as_______cheque since the validity period of the cheque is _______________
a) Stale cheque four months; b) Stale cheque three months; c) Stale cheque six months; d) Old cheque three months;

19. _________________is also known as supplementary capital and it comprises of property revaluation reserve,
undisclosed reserves, hybrid capital, subordinated term debt and general provisions
a) Tier one capital; b)Tier two capital; c) Issued capital; d) Subscribed capital; e) Authorized capital

20. It is the rate at which Reserve Bank of India allows finance to the commercial banks and it is a tool used by the
central bank for short term purposes and any revision in the said rate is a signal to the banks to revise deposit rates
as well as lending rates
a) Bank rate; b) Repo rate; c) Reverse repo rate; d) Base lending rate; e) None of the above

21. __________________can be defined as use of a third party for the purpose of performing activities on a continuing
basis that would normally be undertaken by the bank itself
a) Outsourcing; b) Underwriting; c) Merchant banking; d) Work sharing; e) None of the above

22. Under section 24(b) of the Banking Regulation act, 1949, every bank is required to maintain at the close of the
business every day, a minimum proportion of their net demand and time liabilities as liquid assets in the form of
cash, gold and unencumbered approved securities and what do you mean by the rate?
a) Repo rate; b) Reverse repo rate; c) Cash reserve ratio; d) Statutory liquidity ratio; e) None of the above

23. The distributors of agricultural inputs and implements and agencies involved in assisting the decentralized sector
are called as
a) Wholesale dealers; b) Retail dealers; c) Intermediary agencies; d) Agricultural distributors; e) None of the above

24. _____________________means the creditor in whose favour the company has created charge on the
properties/assets of the company for due payment of the loans/advances availed from him
a) Secured creditor; b) Lending agency; c) Lending banker; d) All the above; e)None of the above

25. Every person or individual such as shareholders, directors, debtors etc., of the company who are liable to contribute
to the assets of the company at the time of its winding up is called as
a) Contributory; b) Owners; c) Helpers; d) Assistors; e) None of the above

26. ________________is a mode by which the dissolution of the company is brought about and its assets realized and
applied in payment of its debts and after satisfaction of the debts, the balance, if any, is paid back to the members
in proportion to the contribution made by them to the capital of the company
a) Insolvency; b) Winding up; c) Closure; d) Settlement; e) None of the above

27. It is a system to manage the assets and liabilities of a bank and it aims at achieving the maximum returns while
maintaining adequate liquidity at all times and it involves assessment of various types of risks and altering liability
mix portfolio in a dynamic way in order to manage the risks
a) Asset and liability mismatch; b) Asset and liability management; c) Assets and liabilities correction; d) ALM; e) Both (b) and
(d) as mentioned above

28. When it comes to CRISIL, what do you mean by L?
a) Leverage; b) Liquidity; c) Licence; d) Limited; e) None of the above

29. _______________is the final authority who resolves the complaints received from the customers of any bank in
regard to banking service:
a) Banking Ombudsman; b) RBI; c) Head Office of the bank; d) Zonal office of the bank; e) None of the above

30. What is common among the following: CRISIL, SMERA, ICRA, CARE, STANDARD AND POOR, MOODYS?
a) Credit counselors; b) Credit analysers; c) Credit rating agencies; d) Merchant bankers; e) None of the above

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01. When it comes to authorized persons who are empowered to undertake foreign exchange dealings in the country
which among the following are not authorized persons belonging to category No: 02?
a) Commercial banks; b) cooperative banks; c) Regional rural banks; d) Full fledged money changers; e) none of the above

02. For any company which among the following is called as sources of funds?
a) Amount received from the customers; b) Increase in capital; c) Increase in general reserve; d) Sale of old machinery; e) All
the above

03. _________________is issued by Income tax department to the bank with instructions to earmark the amount in
the deposit accounts held by a customer of the bank who is defaulter in income tax
a) Garnishee order; b) Notice; c) Attachment order; d) Confiscation order; e) None of the above

04. ___________________is issued by Court to the bank with instructions to withheld the amount available in the
deposit accounts of the customer of the bank who has been charged with money suit
a) Attachment order; b) Garnishee order; c) Court summons; d) Court decree; e) None of the above

05. is the symbol used for denoting which among the following currencies?
a) Sterling pound; b) United states dollar; c) Euro; d) Australian dollar; e) Canadian dollar

06. _________________is a person who has been appointed to solve the disputes between banks in respect of
customer/bank related issues:
a) Supreme court; b) Testator; c) Executor; d) Administrator; e) Arbitrator

07. When it comes to depreciation, which among the following is found to be irrelevant?
a) Buildings; b) Machinery; c) Stock of goods; d) Land; e) Cash balance

08. Under this situation, the seller delivers the goods alongside the ship while the buyer nominates the carrier and
pays the freight and provides export clearance for the goods:
a) Free alongside ship; b) Free among the ship; c) Free over the ship; d) Free alongside sea; e) None of the above

09. When a customer of any bank is willing to represent his case with banking ombudsman, he has to represent
within_________years from the date of last reply received from his bank
a) Two; b) One; c) Three; d) Six months; e) None of the above

10. For all outward remittances other than foreign imports by way of demand drafts or telegraphic transfers or online
transfer of money, ___________________has to be applied
a) Bills selling rate; b) TT selling rate; c) TC selling rate; d) Currency selling rate; e) None of the above

11. At the time of purchase and negotiation of export bills, which among the following rates are to be applied?
a) TT buying rate; b) Bills buying rate; c) TC buying rate; d) Currency buying rate; e) None of the above

12. ____________________is applied at the time foreign currencies are obtained by the customer in exchange of
local currency and ________________is applied at the time of encashment of foreign currency notes for getting
local currencies
a) Currency selling currency buying; b) Currency buying- currency selling; c) TC selling TC buying; d) TC buying TC
selling; e) None of the above

13. When the exporter sells his rights over the goods under export, it is called as
a) Factoring; b) Forfeiting; c) Settlement; d) Goods oversold; e) None of the above

14. What do you mean by FITT?
a) Foreign Inward Telegraphic Transfer; b) Foreign Inward Telegraphic Treaty; c) Foreign Inward Telegraphic Terms; d) Foreign
Internal telegraphic transfer; e) None of the above

15. For any banker, among the following who are called as constituents?
a) Deposit account holders; b) borrowers; c) Safe deposit holders; d) Demat accountholders; e) All the above

16. The production of meat is represented by which among the following?
a) Brown revolution; b) Grey revolution; c) Red revolution; d) Black revolution; e) None of the above

55

17. When it comes to priority sector advances granted by any commercial bank, which among the following is found
to be irrelevant?
a) Loans to retail traders; b) Loans to SC/ST beneficiaries; c) Loans to DRI beneficiaries; d) Loans to professional and self
employed persons; e) Loans to employees working in IT company for purchase of cars

18. Which among the following terms is not related to banking industry?
a) Cheque truncation; b) Equitable mortgage; c) Letter of credit; d) Substandard assets; e) Whole life policy

19. The central board of RBI consists of twenty members in the following ratio: ______governor; _____deputy
governors; ____government official from Ministry of Finance; ____directors nominated by the central
government; ____directors nominated each one from the four local boards
a) 1-4-1-10-4; b) 1-1-4-10-4; c) 1-4-1-4-10; d) 1-4-2-10-3; e) None of the above

20. When it comes to various functions of Reserve Bank of India, which among the following is found to be irrelevant?
a) Bankers bank and supervisor; b) Foreign exchange manager; c) Controller of capital markets; d) Publication of monetary
data and other statistical information; e) Currency issue and management

21. ____________________refers to the directives issued by RBI under section 21 of Banking Regulation act 1949 to
regulate flow of bank credit against the security of sensitive/selected commodities
a) Open market operations; b) Selective credit control; c) Moral suasion; d) Quantitative credit control; e) None of the above

22. Among the following banks, which is the odd man out?
a) State Bank of Hyderabad; b) State Bank of Mysore; c) State Bank of Patiala; d) State Bank of Travancore; e) State Bank of
Indore

23. When it comes to various slogans utilized by State Bank of India, which among the following is found to be
irrelevant?
a) With you all the way; b) Pure banking nothing else; c) The banker to every Indian; d) Together we can; e) The nation banks
on us

24. When it comes to various cooperative banks functioning in the country which among the following is found to be
irrelevant?
a) Primary agriculture credit societies; b) Central cooperative bank; c) State cooperative bank; d) Cooperative consumer
societies; e) Primary cooperative agriculture and rural development banks

25. United India Insurance company Limited is having its headquarters at which among the following places?
a) Kolkatta; b) Mumbai; c) New Delhi; d) Chennai; e) Bangalore

26. Gross domestic product is measured by which among the following approaches?
a) Expenditure approach; b) Income approach; c) Value based approach; d) All the above; e) None of the above

27. Where is the headquarters of Asian Development Bank?
a) Manila; b) New Delhi; c) Singapore; d) Tokyo; e) Beijing

28. ICRA Limited was established during the year 1991 and it was originally named as IICRA and what do you mean
by IICRA?
a) Investment Information and Credit Rating Agency of India Limited
b) Investment Information and Credit Rating Authority of India Limited
c) Investment Information and Credit Relational agency of India Limited
d) Investment Information and Credit Rating Agency of Institution Limited

29. The basic objectives of Securities and Exchange Board of India are:
a) Promoting the interests of investors in securities; b) Promoting the development of securities market; c) Regulating the
securities market; d) All the above; e) None of the above

30. Which among the following is the largest stock exchange in India?
a) Bombay stock exchange; b) National stock exchange; c) New Delhi stock exchange; d) Kolkatta stock Exchange; e) Chennai
stock exchange

56

01. Right to education bill has been passed by the Parliament and the bill was introduced to help which of the
following groups of the society?
a) College going teenagers; b) Those who are interested in technical education; c) Female students studying senior
secondary school; e) All adults who could not get formal education

02. Which of the following schemes was launched to provide cooked food to school going children in the country so
that they are motivated to come to school regularly?
a) Right to education; b) Food for work scheme; c) Mid day meal scheme; d) Annapurna scheme; e) None of the above

03. Which among the following schemes was launched to promote exports of agricultural produce and their value
added products in the country?
a) Vishesh Krishi and Gram Udyog Yojana; b) Financial inclusion scheme; c) Rashtriya Krishi Vikas Yojana; d) Van Upaj Yojana;
e) None of these

04. Which of the following organizations is not associated with the financial banking sector in the country?
a) NABARD; b) BSE; c) ISRO; d) ECGC; e) DICGC

05. Which of the following terms is not used in the field of banking and finance?
a) Overdraft; b) Cash credit; c) RTGS; d) NEFT; e) Double fault

06. Prudential norms were initiated in the banking sector with a view to
a) Increase operational efficiency; b) Contain the non performing assets; c) Strengthen the soundness of the banking system;
d) improve the customer service; e) None of the above

07. Banking sector reforms in the country were introduced for the purpose of
a) Giving more and more employment opportunities to the educated unemployed;
b) Taking care of the down trodden masses
c) Increasing efficiency in the banking system
d) Giving better return to the Central Government

08. Banks can control their transaction costs by
a) Restricting their lending activities; b) Undertaking more and more non banking activities; c) Encouraging the customers to
the bank with other banks; d) Devoting more attention to operational efficiency; e) None of the above

09. Which of the following is not a part of Indias Money market?
a) Bill markets; b) Call money market; c) Banks; d) Indian Gold Council; e) Mutual funds

10. Which of the following programmes is being implemented in all the districts of the country?
a) Sarva Siksha Abhiyan; b) Navodaya Vidyalay; c) Ultra Mega power project; d) Rajiv Gandhi Grameen Vidyuthirakaran
Yojana; e) None of these

11. Which of the following is/are the measures taken by RBI to ease the liquidity crunch in the country?
a) Cut in cash reserve ratio and statutory liquidity ratio; b) Increase the flow of foreign direct investments; c) Supply of
additional currency notes in the market; d) All the above; e) None of the above

12. Which of the following is true about Antyodaya Anna Yojana?
a) Scheme is for below poverty line families; b) People are provided with cooked meal under the scheme; c) All beneficiaries of
National Rural Employment Guarantee act are covered under this scheme; d) All the above; e) None of the above

13. Which of the following is not a government sponsored organization?
a) Small Industries Development Bank of India; b) National Bank for agriculture and rural development; c) National Housing
Bank; d) ICICI bank; e) Industrial Investment Bank of India

14. Many times we come across the following term FII and what do you mean by the term?
a) Final Investment in India; b) Foreign Investment in India; c) Formal Investment in India; d) Fair Institutional Investment; e)
Foreign Institutional Investment

028
57

15. Many times we read in newspapers that the rupee is appreciating and when we consider the rupee dollar
exchange rate in the light of purchasing power parity, we think that the exchange rate of the two currencies
should be:
a) Equal to the ratio of price levels in the two countries; b) Not be equal to the ratio of price levels in the two countries; c)
Decided on the basis of the value of the third major currency i.e. euro or yen; d) Necessarily be different for both the
currencies as the economies of both of them are driven on two different sets of variables and it has no relation with PPP; e)
None of the above

16. Among the following who is the topmost authority in any bank?
a) General Manager; b) Executive director; c) Chairman and Managing Director; d) Zonal Manager; e) None of the above

17. Many times we read in newspapers about ECB in financial newspapers and what is the full form of ECB?
a) Essential commercial borrowings; b) Essential credit and borrowings; c) External credit and business; d) External
commercial borrowings; e) None of the above

18. Which among the following is not a banking related term?
a) Portfolio management; b) Overdraft; c) Treasury operations; d) Merchant banking; e) Decree

19. Which among the following is the second largest bank in the country?
a) Punjab National Bank; b) State Bank of India; c) ICICI Bank; d) Canara Bank; e) None of the above

20. Which among the following is the second largest public sector bank in the country?
a) Punjab National Bank; b) State Bank of India; c) Bank of Baroda; d) Canara Bank; e) Bank of India

21. _________________are individuals with huge wealth who can maintain large deposits with the bank
a) High Net Worth Individuals; b) Government departments; c) Government owned organsiations; d) Trusts; e) None of the
above

22. _____________________stands for providing various services to corporate clients by helping them to access
capital market
a) Merchant banking; b) Retail banking; c) Corporate Banking; d) Commercial Banking; e) Development Banking

23. ___________________is one among the units which holds the securities like shares and debentures in electronic
form:
a) Depository; b) Demat holder; c) Share Registrar; d) Merchant Banker; e) Issuer

24. _____________is the rate at which Reserve bank of India lends short term funds to commercial banks against
government securities and _________is the rate at which Reserve Bank of India lends funds to commercial banks
against discounting bills of exchanges
a) Bank rate- Repo rate; b) Base rate Repo rate; c) Repo rate Bank rate; d) Bank rate Base rate; e) None of the above

25. It is the interest rate that banks are entitled to get when they deposit surplus funds with the central bank of the
country
a) Base rate; b) Bank Rate; c) Repo rate; d) Reverse Repo rate; e) None of the above

26. Find the incorrect match from among the following:
a) Canara Bank together we can; b) Allahabad Bank a tradition of trust; c) Andhra Bank for all your needs; d) Vijaya Bank
a friend you can bank on; e) Union Bank of India Good people to grow with

27. Find the incorrect match from among the following:
a) ABN Amro Bank The Netherlands; b) BNP Paribas Bank France; c) China Trust Commercial Bank Taiwan; d) Barclays
Bank United States of America; e) Royal Bank of Scotland United Kingdom

28. It is the economy where both public and private sector coexist
a) Agrarian economy; b) Mixed economy; c) Developing economy; d) All the above; e) None of the above

29. When it comes to secondary sector one among the broad sectors of Indian Economy, which among the following
is odd man out?
a) Mining; b) Manufacturing; c) Agriculture; d) Gas and water supply; e) Construction activities

30. The net value of all final goods and services produced in a country during a financial year is termed as:
a) National income; b) National wealth; c) Personal Income; d) Personal disposable income; e) None of the above

58

01. It is the measurement of the production power of an economic system during a given time period
a) National income; b) National wealth; c) Personal income; d) Personal disposable income; e) None of the above

02. It is the measurement of the present assets available at a given time and it is a stock concept
a) National income; b) National wealth; c) Personal Income; d) Personal disposable income; e) None of the above

03. It refers to the money value of total output of production of final goods and services produced by the nationals of a
country during a given period time, normally a year:
a) Gross domestic product; b) Gross national product; c) Net National Product; d) National wealth; e) None of the above

04. It is the total money value of all final goods and services produced within the geographical boundaries of the
country during a given period of time
a) Gross domestic product; b) Gross national product; c) Net National Product; d) National wealth; e) None of the above

05. It is called as the capital stock consumption and it is the net value that is obtained by subtracting depreciation from
gross national product
a) Net national product; b) Personal Income; c) Personal disposable income; d) National Income; e) None of the above

06. It is that income that is actually obtained by the individuals or nationals in a country
a) National income; b) Personal income; c) Personal disposable income; d) Net national product; e) None of the above

07. When personal direct taxes are subtracted from personal income, the obtained value is called as_______________
a) National income; b) Personal disposable income; c) Personal Income; d) Net National product; e) All the above

08. When net national product is calculated at factor cost, it is called as national income and when the national income
is measured at the base year price, it is called as
a) National income at current prices; b) National income at constant prices; c) National income at factor cost; d) National
income at base prices; e) None of the above

09. National income is calculated by which among the following methods?
a) Product method; b) Income method; c) Consumption method; d) All the above; e) None of the above

10. National income is measured by three methods and in this method, the net value of final goods and services
produced in a country during a year is obtained
a) Product method; b) Income method; c) Consumption method; d) Both (a) and (b) as mentioned above; e) None of the
above

11. Planning commission is the central body for making plans in the country and _______________is the ex-officio
chairman of the planning commission
a) The President; b) The Prime Minister; c) The Vice President; d) The finance secretary; e) None of the above

12. The first chairman of the Planning commission in the country was_______________and the first deputy chairman
was__________
a) Jawaharlal Nehru Vallabai Patel; b) Jawaharlal Nehru Dr. Rajindra Prasad; c) Jawaharlal Nehru Gulzarilal Nanda; d)
Jawaharlal Nehru Lal Bahadur Sastri; e) None of the above

13. Which among the following is found to be incorrect when it comes to National Development Council?
a) National Development Council was constituted on 6
th
August, 1952
b) Prime Minister is the Ex-Officio Chairman
c) The secretary of the Planning Commission is the Ex-Officio Secretary of NDC
d) Chief Minister of all the states and the members of the Planning Commission are the members of NDC
e) It is an intra-constitutional body

14. When it comes to the various functions of National Development Council, which among the following is found to be
incorrect?
a) It aims to make cooperative environment for economic planning between the states and the planning commission
b) It evaluates the management of plans from time to time
c) It analyses the policies affecting development
d) It gives suggestions to achieve the fixed aim in the plans
e) It is not responsible for giving final approval to the five year plans
029
59

15. When it comes to ___________of planning, the role of capital accumulations dual character which on the one hand
increases the national income and on the other hand increases the production capacity
a) Harrod Domar Strategy; b) Nehru Mahalanobis strategy; c) Gandhian Strategy; d) LPG strategy; e) Pura strategy

16. When it comes to______________of planning, it emphasizes on four connectivities namely physical, electronic,
knowledge and thereby leading to economic connectivity to enhance the prosperity of cluster of villages in rural
areas
a) Harrod Domar strategy; b) Gandhian strategy; c) LPG strategy; d) PURA strategy; e) Nehru Mahalanobis strategy
17. When it comes to different types of planning, which among the following is irrelevant?
a) Planning by direction; b) Planning by inducement; c) Financial planning; d) Physical planning; e) Economic planning

18. In the case of _____________, every year three new plans namely; annual, fixed and perspective plan are made
and acted upon
a) Indicative planning; b) Imperative planning; c) Rolling plan; d) Core Plan; e) Physical planning

19. The allocation of resources in terms of men, materials and machinery is called as
a) Financial planning; b) Perspective planning; c) Indicative planning; d) Imperative Planning; e) Physical Planning

20. When it comes to eleventh plan, which among the following title of the document is found to be true?
a) Growth with social justice and equality; b) Towards faster and more inclusive growth; c) Faster, sustainable and more
inclusive growth; d) Removal of poverty and attainment of self reliance; e) None of the above

21. What are the essential elements of inclusive development?
a) Poverty reduction and increase in quantity and quality of employment; b) Agriculture development; c) Reduction in regional
disparities; d) Social sector development; e) All the above

22. What do you know by HDR?
a) Human development report; b) Human development return; c) Human density report; d) Human density return; e) None of
the above

23. Which among the following are the causes of rural poverty?
a) Rapid population growth; b) Lack of capital; c) Excessive population pressure on agriculture; d) Lack of implementation of
PDS; e) All the above

24. Which among the following are the causes of urban poverty?
a) Migration from rural areas; b) Lack of skilled labour; c) Lack of housing facilities; d) Lack of vocational education/training; e)
All the above

25. The unemployment generated due to change in market conditions (change in demand and supply condition) is
called as
a) Structural unemployment; b) Under employment; c) Open unemployment; d) Disguised unemployment; e) Frictional
unemployment

26. When it comes to the term called as HYVP, what do you mean by V?
a) Variation; b) Variety; c) Village; d) Venture; e) None of the above

27. What do you mean by IADP?
a) Integrated agricultural district programme; b) Intensive Agricultural District Programme; c) Intensive Agricultural
Development Programme; d) Intensive Administrative Development Programme; e) None of the above

28. Increase in productivity and prosperity without ecological harm is denoted by which among the following
revolutions?
a) Green revolution b) Evergreen revolution; c) Grey revolution; d) Rainbow revolution; e) None of the above

29. What do you know by CACP?
a) Commission for agricultural costs and Prices; b) Committee for agricultural costs and prices; c) Committee for administrative
costs and prices; d) Commission for agricultural costs and production; e) None of the above

30. There are two sources of credit available to the farmers viz., institutional and non institutional and which among the
following do not belong to Non institutional credit?
a) Funds from money lenders; b) Funds from commission agents; c) Funds from relatives; d) Funds from commercial banks; e)
Funds from landlords

030
60

01. The main foreign exchange reserves in the country are:
a) Foreign currency assets; b)Gold stock; c) Special drawing rights; d) Reserve tranche position; e) All the above

02. ___________________was enacted in 1973, to consolidate and regulate dealings in foreign exchange so as to
conserve the foreign exchange and utilize it to promote economic development
a) FERA; b) FEMA; c) FCA; d) EPZ; e) none of the above

03. It is a geographical region that has economic and other laws that are more free market oriented than a countrys
typical national laws:
a) Special Economic Zone; b) Export Processing Zone; c) Geographical economic zone; d) Strategic economic zone; e) None of
the above

04. Financial system refers to the borrowing and lending of funds for the demand and supply of funds of
a) All individuals; b) Institutions; c) Companies; d) The government; e) All the above

05. _________________are the government bonds which are used to raise funds from the money market
a) Treasury bills; b) Certificate of deposits; c) Commercial papers; d) Dated government securities; e) None of the above

06. Certificate of deposits issued by ________________are a saving certificate entitling the bearer to receive interest
and the maturity of a certificate of deposit varies from three months to one year
a) Commercial banks; b) Government; c) Companies; d) All the above; e) None of the above

07. Commercial papers are issued by__________________in multiples of Rs. 25 lakhs subject to a minimum issue of
Rs. 1 crore and the maturity of commercial paper is between three to six months
a) Commercial banks; b) Government; c) Companies; d) All the above; e) None of the above

08. ______________________is an index which helps the investors to decide as to how much and where to invest in
money market through providing information about prevailing market ratio:
a) Money market index; b) capital market index; c) SENSEX; d) NIFTY; e) All the above

09. Stock exchange or share market deals in
a) Shares; b) Debentures; c) Financial securities; d) All the above; e) None of the above

10. The main functions of SEBI are:
a) Protecting the interests of investors in securities
b) Promoting the development of securities market and to regulate the securities market
c) Prohibiting unfair trade practices in the market
d) All the above

11. NASDAQ composite index is an index pertaining to which country among the following?
a) Hongkong; b) Indonesia; c) South Korea; d) United States; e) Europe

12. The stock market index pertaining to South Korea is
a) Hang Seng; b) Nikkei; c) Kospi; d) Dow Jones; e) None of the above

13. __________________is also called as the rediscount rate and it is the rate at which Reserve Bank of India gives
finance to Commercial Banks
a) Bank rate; b) Cash reserve ratio; c) Statutory liquidity ratio; d) Repo rate; e) Reverse repo rate

14. Qualitative selective credit controls are used to control and check the rising tendency of the prices of certain
individual commodities of common use and RBI uses which kinds of selective credit controls?
a) Minimum margins for lending against specific securities; b) Ceiling on the amount of credit for certain purposes; c)
Discriminatory rate of interest charged on certain types of advances; d) All the above; e) None of the above

15. State Bank of India was previously called as Imperial Bank of India in 1921 which was created by amalgamation of
which among the following presidency banks?
a) Bank of Bengal; b) Bank of Bombay; c) Bank of Madras; d) All the above; e) None of the above

16. Among the top five private sector banks in the country which is occupying the third position?
a) Yes Bank; b) Kotak Mahindra Bank; c) Axis Bank; d) HDFC Bank; e) ICICI Bank
61

a) National Insurance Company Limited Kolkatta; b) The New India Assurance Company Limited New Delhi; c) The Oriental
Insurance Company Limited New Delhi; d) The United Insurance Company Limited Chennai; e) Life Insurance
Corporation of India Mumbai

18. Which among the following are the causes of inflation?
a) Printing too much money; b) Increase in production cost; c) Tax rises; d) Decline in exchange rates; e) All the above

19. When it comes to the effects of inflation, which among the following is found to be not in order?
a) It is economically disastrous for lenders; b) Balance of trade can become favourable; c) Severely impacts the common man
by reducing their real income; d) Persistent high level of inflation leads to economic stagnation; e) None of the above

20. When it comes to the measures to control inflation, which among the following is found to be irrelevant?
a) Decreasing the bank interest rates; b) Regulating fixed exchange rates of the domestic currency; c) Controlling prices and
wages; d) Providing the cost of living allowances to citizens; e) None of the above

21. Wholesale price Index called as WPI measures the change in wholesale prices on __________basis and Consumer
Price Index called as CPI measures the change in retail prices on _________basis
a) Monthly-weekly; b) Weekly-Monthly; c) Weekly-fortnightly; d) Fortnightly-Monthly; e) Monthly-Quarterly

22. Which among the following are the main sources of revenue for the country?
a) Customs duties; b) Excise duties; c) Service tax; d) Taxes on property; d) corporate and income; e) All the above

23. When it comes to the sources of expenditure for the country as a whole, which among the following does not belong
to plan expenditure?
a) Agriculture; b) Irrigation and flood control; c) Transport and communications; d) Energy; e) Interest payments

24. _______________comprises of loans raised from the open market treasury bills issued to the Reserve Bank of
India, commercial banks etc., and ___________consists of loans taken from World Bank, International Monetary
Fund, Asian Development Bank etc.,
a) External debt-internal debt; b) Internal debt-External debt; c) Capital expenditure revenue expenditure; d) Capital
receipts-revenue receipts; e) None of the above

25. __________________is the difference between revenue receipts and revenue expenditure and it shows the current
fiscal situation of the government
a) Fiscal deficit; b) Revenue deficit; c) Primary deficit; d) Capital deficit; e) None of the above

26. What are the different types of budgeting which are in use in our country?
a) Zero based budgeting; b) Outcome budgeting; c) Gender budgeting; d) All the above; e) None of the above

27. It is a method of budgeting in which all budgetary allocations are set to nil at the beginning of a financial year
a) Outcome budgeting; b) Zero based budgeting; c) Gender budgeting; d) Economic budgeting; e) None of the above

28. Finance commission was constituted in the country to define financial relations between the centre and the state
and the functions of the commission are to make recommendations to the President in respect of
a) The distribution of net proceeds of taxes to be shared between the Union and the States and the allocation of share of such
proceeds among the states;
b) The principles which should govern the payment of grants in aid by the centre to the state;
c) Any other matter concerning financial relations between the centre and the states

a) Asian Development Bank Manila; b) World Trade Organisation Washington; c) World Bank Washington; d) International
Monetary Fund Washington; e) International Development Association Washington

30. Which committee among the following was entrusted with the work relating to Customer service in banks?
a) Birla committee; b) Damodaran Committee; c) Deepak Mohanty committee; d) Raghuram Rajan committee; e) Sarangi
committee

031
62

01. ___________________refers to transparency in government procurement, trade facilitation, trade and
investment and trade and competition:
a) Singapore Issues; b) Malaysian Issues; c) United States Issues; d) Indian issues; e) None of the above

02. ______________was established in December, 1966 with the aim to accelerate economic and social development
in Asia and Pacific region and it is headquartered at Manila
a) World Bank; b) Asian Development Bank; c) World Trade Organisation; d) International Monetary Fund; e) None of the
above

03. For India _________________ is the ex-officio Governor of the Board of Governor of the International Monetary
Fund and______________ is Indias alternate governor
a) Finance Minister Finance secretary; b) Prime Minister RBI Governor; c) Finance Minister RBI Governor; d) Prime
Minister Finance secretary; e) None of the above

04. When it comes to the population trend in the country, 1951-1981 was graded as
a) Period of stagnant population; b) Period of steady growth; c) Period of high growth; d) Period of declining growth; e) None of
the above

05. What do you mean by the term called as TFR?
a) Total fertility rate; b) Total fertilizer return; c) Total fatality rate; d) Total feminine rate; e) None of the above

06. The functions of the Finance Commission are to make recommendations to the President in respect of
a) The distribution of net proceeds of taxes to be shared between the Union and the states and the allocation of share of such
proceeds among the states
b) The principles which should govern the payment of grants in aid by the centre to the states
c) Any other matter concerning financial relations between the centre and the states; d) All the above; e) None of the above

07. ____________is a tax that is borne by the person on whom it has been levied and such tax cannot be shifted to
any other person
a) Direct tax; b) Indirect tax; c) Direct duty; d) Income tax; e) None of the above

08. ______________is the tax which has its primary burden on impact on one person; however, that person succeeds
in shifting the burden on to others
a) Direct tax; b) Indirect tax; c) Indirect duty; d) Indirect expenditure; e) None of the above

09. When it comes to the taxes which are collected by Union of India which among the following is not true?
a) Corporation tax; b) Custom duties; c) Estate and succession duties other than on agricultural land; d) Taxes on railway
freight and fares; e) Taxes on vehicles, animals and boats

10. When it comes to taxes which are collected by the states in the country, which among the following is not true?
a) Land revenue; b) Taxes on professionals, trades and employment; c) Taxes on the consumption and sale of electricity; d)
Taxes on the entry of goods into a local area; e) Rates of stamp duties on financial documents

11. ______________________tries to ensure that budget outlays translate into concrete outcomes
a) Zero based budgeting; b) Outcome budgeting; c) Gender budgeting; d) National budgeting; e) None of the above

12. ______________________came into being during the year 2004-2005 and in order to contribute towards the
women empowerment and removal of inequality based on gender, role of budgeting has been accepted through
this step
a) Zero based budgeting; b) Outcome budgeting; c) Gender budgeting; d) National budgeting; e) None of the above

13. The budget is prepared by the budget division of___________________after consulting with other ministries and
the planning commission
a) Reserve Bank of India; b) Finance Commission; c) Finance Ministry; d) Planning commission; e) None of the above

14. Revenue expenditure includes which among the following:
a) Interest payments; b) Major subsidies; c) Defence expenditure; d) All the above; e) None of the above

15. Capital receipts include which among the following:
a) Recovery of loans; b) Other receipts (mainly PSU disinvestment); c) Borrowings and other liabilities; d) All the above; e)
None of the above
63

16. When it comes to the four types of deficits which are mentioned in any budget statement, which among the
following is found to be irrelevant?
a) Revenue; b) Budget; c) Fiscal; d) Primary; e) Secondary

17. Non plan expenditure consists of which among the following?
a) Interest payments; b) Defence; c) Subsidies and general services; d) All the above; e) None of the above

18. _________________refers to the management of revenue and capital expenditure finances by the state
a) Fiscal system; b) Fiscal policy; c) Sources of revenue; d) Sources of expenditure; e) None of the above

19. When it comes to the main sources of revenue for the country, which among the following is found to be
irrelevant?
a) Custom duties; b) Excise duties; c) Service tax; d) Taxes on property; e) Minerals

20. _________________refers to the use of taxation, public expenditure and the management of the public debt in
order to achieve certain specified objectives
a) Fiscal system; b) Fiscal policy; c) Sources of revenue; d) Sources of expenditure; e) None of the above

21. __________________________means reducing the value of a currency by the fiscal authorities so as to make
exports cheaper and imports costlier and overcome balance of payments deficit
a) Devaluation of currency; b) Revaluation of the currency; c) Deregulation of the currency; d) Neutralization of the currency;

22. The present monetary system of the country is based on inconvertible paper currency and is managed by
_________________
a) Government of India; b) Reserve Bank of India; c) Finance Ministry; d) Economic affairs wing; e) None of the above

23. It is the general decline in prices, often caused by a reduction in the supply of money of credit and it can be also
caused by a decrease in government, personal or investment spending and the unemployment since there is a
lower level of demand in the economy which can lead to an economic depression
a) Deflation; b) Stagflation; c) Inflation; d) Deregulation; e) None of the above

24. When you have a slow economy with high inflation rates and unemployment, it is usually resultant and when the
economy does not grow and prices continue to rise it will have a ________________cycle in the economy
a) Deflation; b) Stagflation; c) Stagnation; d) Stratification; e) None of the above

25. Basel norms are set by the BIS headquartered in Basel in the country of Switzerland and it prescribes for a set of
minimum capital requirement for banks and what do you mean by BIS?
a) Bureau of Indian Standards; b) Bank of International Settlement; c) Bank of Industrial Settlement; d) Bank of International
Standards; e) none of the above

26. CRAR is composed of Tier I and Tier II capital and according to you what do you mean by CRAR?
a) Capital to risk weighted assets ratio; b) Capital to risk weighted assets return; c) Capital to rate weighted assets ratio; d)
Capital to risk weighted assets range; e) None of the above

27. NSDL has been appointed by the Central Record Keeping Agency for the national payment systems and according
to you what do you mean by NSDL?
a) National Securities Depositories Limited; b) National Standards Depositories Limited; c) National Settlements Depositories
Limited; e) National Securities Depositories Licenciate; e) None of the above

28. Banking Regulation act 1949 was amended during the year_________and once again during the year_______to
permit the entry of new private sector banks in the Indian banking sector and the objective was to instill greater
competition in the banking system to increase productivity and efficiency
a) 1993/2001; b) 1993/2000; c) 1994/2000; d) 1993/2002; e) None of the above

29. During the year 2001 revised guidelines were formulated for the establishment of new private sector banks and
some of these guidelines are:
a) The bank should have minimum net worth of Rs. 100 crores; b) The promoters holding should be a minimum of 25 percent
of the paid up capital; c) Within three years of the starting of the operations, the bank should offer shares to the public; d)
All the above; e) None of the above

30. ____________are the most important among the newer capital market institutions and their functions are to
mobilize the savings of the general public and invest the amount mobilized in stock market securities
a) Mutual funds; b) Venture capital funds; c) Stock exchanges; d) Merchant bankers; e) None of the above
032
64

01. The standard of living in any country is represented by which among the following?
a) National Income; b) Per capita income; c) Poverty ratio; d) Unemployment rate; e) None of the above

02. Which among the following banks merged with State Bank of India during 2010?
a) State Bank of Travancore; b) State Bank of Mysore; c) State Bank of Indore; d) State Bank of Saurashtra; e) State Bank of
Jaipur

03. Balance of payments accounts are prepared by which among the following institutions in our country?
a) Reserve Bank of India; b) Director General of Foreign Trade; c) Securities and Exchange Board of India; d) Finance
Secretary, Government of India; e) None of the above

04. The name of which of the following great national leaders of the country is associated with National Rural
Employment Guarantee scheme of the country?
a) Jawaharlal Nehru; b) Mahatma Gandhi; c) Lal Bahadur Sastri; d) Indira Gandhi; e) Rajiv Gandhi

05. PURA strategy the idea was mooted by whom among the following?
a) Rajiv Gandhi; b) Dr. Manmohan Singh; c) Dr Abdul Kalam; d) Indira Gandhi; e) Narasimha Rao

06. When it comes to the different terms used in banking, which among the following is found to be irrelevant?
a) Savings; b) Recurring; c) Fixed; d) Non Resident; e) Lattitude

07. Among the following currency notes, the design denoting Parliament House of the country has been printed in
which currency note?
a) Rs. 1000; b) Rs. 500; c) Rs. 100; d) Rs. 50; e) Rs. 20

08. Find the incorrect match from among the following groups
a) Reserve Bank of India Canara Bank; b) Insurance Regulatory and Development Authority LIC of India; c) Securities and
Exchange Board of India Mutual funds; d) Association of Mutual Funds in India TCS Limited; e) NABARD Regional Rural
Banks

09. Which among the following banks is limited to meet the needs of Small Industries?
a) SIDBI; b) IFCI; c) EXIM; d) NABARD; e) NHB

a) NABARD AGRICULTURE; b) NHB HOUSING; c) EXIM EXPORT; d) IFCI MUTUAL FUNDS; e) IIBI INDUSTRIES

11. The definition of banking is provided in
a) Negotiable Instruments Act 1881; b) Banking Regulation act 1949; c) Indian Contract act 1872; d) Reserve Bank of India act
1934; e) None of the above

12. Bank holidays are declared according to which among the following acts in the country?
a) Banking Regulation act 1949; b) Negotiable Instruments Act 1881; c) Indian Contract 1872; d) Reserve Bank of India act
1934; e) None of the above

13. James had issued a cheque to Krishnan for Rs. 10000/- dated: 10.09.2013 drawn on State Bank of India, Chennai
and Krishnan endorsed the cheque to Raman and Raman endorsed the cheque to Ramesh and Ramesh endorsed the
cheque to Prema find the correct order for the following: State Bank of India James Krishnan Prema:
a) Drawee drawer payee endorser; b) Drawee drawer payee endorsee; c) Drawee endorser payee endorsee;
d) Drawee drawer payee holder; e) Both (b) and (d) as mentioned above

14. Kannan was having an account with XYZ bank and he issued a cheque for Rs. 20000.00 to Ramesh whereas the
balance in the account was Rs. 19000.00 and the bank manager has passed the cheque as a special case by
permitting____________in the account of Kannan
a) Overdraft; b) TOD; c) Cash Credit; d) Current debit; e) None of the above

15. When the value of currency is falling down, which among the following is found to be the best option to improve the
value of the currency ?
a) Increase in imports; b) Increase in exports; c) Increase in imports and exports; d) Discouraging imports and exports; e)
None of the above

16. Apart from having one automated teller machine adjacent to its branch, ABC bank opened one automated teller
machine in the shopping complex two kilometers away from the branch. How will you classify the first and second
automated teller machines among the following?
a) Offsite Onsite; b) Onsite Offsite; c) Brown label White Label; d) White Label Brown Label; e) None of the above

17. Ramesh was having one ATM card pertaining to State Bank of India and he went to the nearby Automated teller
machine installed by Punjab National Bank for withdrawing money; however, since he could not withdraw the
65

money, he went to another automated teller machine installed by one private entrepreneur VETA and was
successful in getting cash. How can you classify the first and second automated teller machines?
a) OFFSITE-ONSITE; b) WHITE LABEL- BROWN LABEL; c) BROWN LABEL-WHITE LABEL; d) ONSITE-OFFSITE; e) None of the
above

18. Which among the following is engaged in providing guarantee facilities to the exporters in the country?
a) DICGC; b) ECGC; c) RBI; d) EXIM; e) DGFT

19. There are different types of institutions which are engaged in providing insurance facilities for various purposes and
when it comes to National Insurance Company Limited, Life Insurance Corporation of India Limited, DICGC Limited
and ECGC Limited, find the correct order from the following:
a) Life Vehicle deposits exports; b) Vehicle Life exports deposits; c) Vehicle Life deposits exports; d) Life
Vehicle exports deposits; e) None of the above

20. When it comes to the different schemes and facilities available with Post Offices in the country which among the
following is found to be irrelevant?
a) Kisan Vikas Patra; b) National savings certificate; c) Recurring deposit; d) Postal Orders; e) FCNR account

21. Ramesh went to ABC bank with an intention to deposit an amount of Rs. 2.00 lakhs for a period of two years and he
was willing to have the interest on maturity only and which deposit scheme is suitable for him?
a) Current account; b) Savings bank; c) Recurring deposit account; d) Fixed deposit; e) Reinvestment deposit account

22. Vikas was an entrepreneur engaged in manufacturing leather goods and was willing to open various deposit
accounts with ABC bank for the following purposes i) an account exclusively for business dealings ; ii) an account
with intention to save his personal money; iii) to get consolidated amount by investing a fixed amount on monthly
basis for 60 months; iv) to invest a lumpsum money for ten years earning interest. Which among the following is
found to be the correct option for Vikas?
a) Current savings fixed recurring; b) Current-savings-recurring-fixed; c) Savings-current-recurring-fixed; d) Savings-
current-fixed-recurring; e) None of the above

23. Banks in the country fall under which among the following categories ?
a) Body corporate constituted under a special statute; b) Company registered under the Companies act 1956 or a foreign
company; c) Cooperative society registered under a central or state enactment on cooperative societies; d) Anyone of the

24. Banking Regulation act 1949 deals with which among the following?
b) Regulation business of banking companies; b) Control over the management of banking companies; c) Suspension and
winding up of banking business; d) Penalties for violation of the provisions of the act; e) All the above

25. One of the essential characteristics of banking is to accept deposits from the public and utilize the money for
lending to the public or invest in government securities and ABC bank on acceptance of the deposits is willing to
utilize the money only in investing in government securities and how will you classify ABC bank under the above
circumstances?
a) Universal bank; b) Commercial Bank; c) Development Bank; d) Narrow Bank; e) Islamic Bank

26. ___________________are the banking companies operating in limited geographical areas and the licence issued to
these banks restricts them to operate within specific area in order to provide adequate banking services in the
specified area:
a) Local area banks; b) Regional Rural Banks; c) Narrow banks; d) Islamic banks; e) Specific banks

27. _____________________is a dynamic concept involving promotion of corporate fairness, transparency and
accountability in the interests of shareholders, employees, customers and other stakeholders
a) Corporate governance; b) Corporate guidance; c) Corporate Cleanness; d) Corporate goodness; e) None of the above

28. A company has to obtain a______________from Reserve Bank of India to commence banking business in terms of
Section 22 of the Banking Regulation act, 1949.
a) Registration; b) Licence; c) Commencement certificate; d) Incorporation certificate; e) None of the above

29. Which among the following are called as off balance sheet items in a bank balance sheet?
a) Buildings; b) Loans; c) Deposits; d) Reserves; e) Bank guarantees

30. On recruitment as probationary officer in ABC bank, you were assigned the role of credit officer and while reading
the balance sheet of a borrower, you come across the term called as gross block and what do you mean by:
gross block?
a) Land-buildings-machinery; b) Cash-bank balance-stock of goods; c) Bank overdraft-sundry creditors-provisions; d) Paid up
capital-reserves-long term borrowings; e) None of the above
033
66

01. When it comes to various items appearing in a balance sheet of any firm, which among the following is found to
be irrelevant?
a) Sundry debtors; b) Sundry creditors; c) Stock of goods; d) Gross block; e) Salaries to employees

02. Selective credit control seeks to influence the demand for credit by
a) Making borrowing more costly for certain purposes which are considered relatively inessential
b) By imposing stringent conditions on lending for such purposes
c) By giving concessions for certain desired types of activities; d) All the above; e) None of the above

03. What do you mean by net block from among the following?
a) Land+building+machinery; b) (Land+building+machinery) less depreciation; c) Paid up capital; d) Cash and bank balance;

04. For the purpose of building fixed capital, joint stock companies are authorized to issue the following:
a) Equity capital; b) Preference share capital; c) Debentures; d) Securities; e) Both (a) and (b) as mentioned above

05. When it comes to the investment by the public in any company, which among the following is considered to be the
contribution by the owners?
a) Debentures; b) Bonds; c) Equity share capital; d) Securities; e) None of the above

06. You are in charge of savings bank department in your bank branch and a customer approaches you on 12.04.2014
with a cheque dated: 12.04.2013 for an amount of Rs. 7000/- payable to bearer and demands payment and how
do you act?
a) Get the signature of the party and pay the amount; b) Ask the identity proof of the bearer, get the signature and pay the
cheque; c) Return the cheque since it is a stale cheque; d) Tell the customer to meet the manager; e) None of the above

07. You are in the teller counter and are in the process of accepting cash receipts from a customer. You find that one
Rs. 500/- currency note is found to be a fake one and how will you act in such circumstances?
a) Return the currency to the customer; b) Cancel the currency note using scissors; c) Burn the currency note and convert into
ashes; d) Keep the currency note and report to the Police about the facts; e) None of the above

08. A customer aged 17 years approaches you with a cheque for Rs. 2000/- payable to bearer and how will you act in
the circumstances?
a) You pay the amount; b) You will tell the minor boy to bring his father or mother; c) You will not pay the amount; d) You will
keep the cheque and tell the minor to bring his father or mother; e) None of the above

09. NSDL called as National Securities Depositories Limited is one among the depositories in the country which is
promoted by:
a) Bombay stock exchange; b) National Stock Exchange; c) OTCEI; d) Multi Commodity Stock Exchange; e) None of the above

10. CDSL called as Central Depository Services Limited is promoted by which among the following?
a) Bombay Stock exchange; b) National Stock Exchange; c) Multi Commodity Stock Exchange; d) OTCEI; e) None of the above

11. What is the nature of a cooperative bank?
a) It is a state cooperative bank; b) A central cooperative bank; c) Primary cooperative bank; d) All the above; e) None of the
above

12. Banks in our country fall under which among the following categories?
a) A body corporate constituted under a special statute; b) A company registered under the Companies act 1956 or a foreign
company; c) Cooperative society registered under a central or state enactment on cooperative societies

13. What is meant by the soft currency?
a) A currency whose exchange rate has a tendency to fluctuate; b) A currency which can be easily used for settling any
International transactions; c) A currency which cannot be easily used for settling international transactions because it does
not command a value in the International market; d) A currency which is available by way of soft loans from International
agencies; e) All the above

14. BIFR stands for:
a) Board for Industrial and Financial Reconstruction; b) Bureau for Income and Free Reconstruction; c) Board of Industrial and
Framed Reconstruction; d) Bureau of Information and Framework Rights; e) None of the above
67

15. Which of the following is responsible for carrying out open market operations in the country?
a) Stock exchanges in the country; b) Indian Banks Association; c) Securities and Exchange Board of India; d) Planning
Commission; e) Reserve Bank of India

16. When it comes to the various remittance facilities available in banks as at present, which is found to be
irrelevant?
a) Demand drafts; b) Real Time Gross Settlement; c) National Electronic Funds Transfer; d) Telegraphic transfers; e) Travellers
cheques

17. Bank rate means which among the following?
a) Rate of Interest charged by commercial banks from the borrowers
b) Rate of interest at which commercial banks discounted bills of their borrowers
c) Rate of interest allowed by the commercial banks on their deposits
d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks

18. Which among the following has been incorrectly matched?
a) World Trade Organisation Geneva; B) World Bank Washington; c) International Monetary Fund Chicago; d) Reserve
Bank of India Mumbai; e) World Health Organisation Paris

19. Which among the following terms is not related to Capital Market?
a) Bulls; b) Bears; c) Shares; d) Debentures; e) Certificate of deposits

20. The transfer of a loan from one party to another is called as:
a) Assignment; b) Arbitrage; c) Amortization; d) Acquisition; e) None of these

21. Which among the following is not related to economics?
a) Gross Domestic Product; b) National wealth; c) Gross National Product; d) Total National Product; e) Net National Product

22. Interest rate policy is a part of
a) Fiscal policy; b) Industrial policy; c) Monetary policy; d) All of these; e) None of these

23. Banks are maintaining currency chests in different cities and towns in the country for the following purposes:
a) Pooling the excess cash; b) Sorting cash into soiled, cut and issuable notes for recirculation; c) For distributing the currency
to the needy branches and other banks; d) On behalf of RBI for the purpose of maintenance of CRR; e) All the above

24. When it comes to the non performing assets which among the following is found to be irrelevant?
a) Repayment of principal amount is outstanding for more than 90 days; b) Interest amount is outstanding for more than 90
days; c) Both principal amount and interest amount outstanding for more than 90 days; d) Doubtful assets; e) Standard
assets

25. The currency notes deposited in the currency chest are the property of which among the following:
a) Respective banks; b) Government of India; c) Reserve Bank of India; d) State Bank of India; e) None of the above

26. From the bankers point of view, which among the following is found to be a risky charge?
a) Lien; b) mortgage; c) Pledge; d) Hypothecation; e) None of the above

27. Which among the following does not belong to the currency of any country in the world?
a) Euro; b) Lira; c) Sterling Pound; d) Dollar; e) Brussels

28. Among several currencies belonging to different countries, which among the following is found to be not in order?
a) Canadian Dollar; b) Singapore dollar; c) Malaysian ringet; d) Japanese Yen; e) Australian Pound

29. In order to effect better recoveries which among the following act was enacted by Government of India?
a) Companies act 1956; b) Banking Regulation act 1949; c) Foreign Exchange Management act; d) Industrial disputes act; e)
Sarfaesi act

30. Which among the following is termed as call money?
a) Money borrowed or lent for a day or overnight; b) Money borrowed for more than one day but upto seven days; c) Money
borrowed for more than one day but upto seven days; d) Money borrowed for more than one day but upto 14 days; e) None
of the above

034
68

01. What do you mean by ICAAP?
a) Internal capital adequacy assessment process; b) Internal Capital adequacy administration process; c) Industrial capital
adequacy administration procedure; d) Internal Capital adequacy assessment procedure; e) None of the above

02. The detailed procedural rules for entering into transactional relations within the banks is termed as: BPC and what
do you mean by BPC?
a) Best Practices code; b) Best Practitioners Committee; c) Best Procedural Code; d) Best Practitioners Conduct; e) None of the
above

03. The process of risk management broadly comprise which of the following functions:
a) Risk identification; b) Risk measurement or quantification; c) Risk control or risk mitigation; d) Monitoring and reviewing; e)
All the above

04. The rating for domestic banks is defined as: CAMELS and in the case of foreign banks, the rating parameter has
been denoted by CALCS and which among the following is not represented by CALCS?
a) Capital adequacy; b) Asset quality; c) Liquidity; d) Compliance, Systems and Controls; e) Leverage

05. ________________is the risk arising from funding of long term assets by short term liabilities or funding short
term assets by long term liabilities:
a) Market risk; b) Operations risk; c) Interest rate risk; d) Liquidity risk; e) Credit risk

06. Which among the following are the essential elements of money laundering?
a) A crime is committed; b) There are gains from the crime; c) Proceeds have been received from crime; d) There is some
transaction in respect of these proceeds or the gains; e) All the above

07. The basic characteristics of retail banking sector are:
a) Multiple products; b) Multiple delivery channels; c) Multiple customer groups; d) All the above; e) None of the above

08. Which among the following pertains to multiple products one among the characteristics of retail banking sector?
a) Deposits; b) Credit cards; c) Insurance; d) Investments; e) All the above

09. Which among the following pertains to multiple delivery channels one among the characteristics of retail banking
sector?
a) Call centre; b) Branch; c) Internet kiosk; d) All the above; e) None of the above

10. Which among the following pertains to multiple customer groups one among the characteristics of retail banking
sector?
a) Consumer; b) Small business; c) Corporate; d) All the above; e) None of the above

11. __________________is a deposit taking banking institution whose scope of activities includes all currently known
banking activities excluding borrowing and lending on the basis of interest:
a) Islamic banking; b) Narrow banking; c) Savings banks; d) Deposit banks; e) None of the above

12. _____________________is a practice followed by the lenders in various countries (including United States and
United Kingdom) to sanction the loans to the borrowers who do not qualify for the best market interest rates due to
certain deficiency in their credit history
a) Sub Prime Lending; b) B-Paper; c) Near Prime; d) Second chance lending; e) All the above

13. _____________________refers to the use of services of a third party in order to perform certain activities
continuously that otherwise would normally be undertaken by the bank itself:
a) Outsourcing; b) Underwriting; c) Merchant banking; d) Term lending; e) None of the above

14. ___________________is the delivery of banking services at an affordable cost to the vast sections of
disadvantaged and low income groups:
a) Financial inclusion; b) Financial exclusion; c) Financial stabilization; d) Financial intermediation; e) None of the above

15. The securities which are not meant for sale and shall be kept till maturity are called as:
a) Call money; b) Term money; c) Notice money; d) Held till maturity; e) Held for trading
16. Securities acquired by the banks with the intention to trade and take advantage of the short term price/interest
rate movements is called as:
a) Held for trading; b) Available for sale; c) Held till maturity; d) Yield to maturity; e) Term money
69

17. ________________refers to the market meant for short term funds
a) Money market; b) Capital market; c) Insurance market; d) Mutual fund markets; e) None of the above

18. Money lent or borrowed for one day is called as
a) Call money; b) Notice money; c) Term money d) Held till maturity; e) None of the above

19. Money lent or borrowed for 15 days or more in Inter bank market is called as
a) Term money; b) Call money; c) Notice money; d) Held till maturity; e) None of the above

20. It is one among the money market instruments in which the expected rate of return on an existing security is
purchased from the market
a) Yield to maturity; b) Held till maturity; c) Held for trading; d) Available for sale; e) None of the above

21. ________________________is a security that is a claim on the government and is a secure financial instrument
which guarantees certainty of both capital and interest. These securities are free of default risk or credit risk, which
leads to low market risk and high liquidity:
a) Gilt edged security; b) Held till maturity; c) Held for trading; d) Yield to maturity; e) None of the above

22. When it comes to calculation of interest payable under call and notice money markets, it is based on FIMMDA and
what do you mean by D in the term called as FIMMDA?
a) Derivatives; b) Dealers; c) Debentures; d) Deciding; e) None of the above

23. _______________________are the instruments of short term borrowing by the central/state governments and
they are promissory notes issued at discount and for a fixed period
a) Treasury bills; b) Treasury certificates; c) Certificate of deposits; d) Commercial paper; e) None of the above

24. When it comes to certificate of deposits issued by the scheduled commercial banks in the country, which among the
following are eligible to become the investors?
a) Individuals; b) Corporations; c) Companies; d) Trusts; e) All the above

25. The minimum amount accepted for certificate of deposit is Rs ________________lakhs in multiples of Rs.
_________lakhs
a) 1,1; b) 5,1; c) 2,1; d) 2,2; e) None of the above

26. Certificate of deposit is a scheme introduced in July, 1989 to enable the banking system to mobilize bulk deposits
from the market which they can attract at competitive rates of interest and they are not issued by which among the
following?
a) State Bank and its associate banks; b) Nationalised Banks; c) Old private sector banks; d) New Private Sector banks; e)
Regional Rural Banks

27. __________________means a financial instrument to be settled at a future date, whose value is derived from
change in some other variables such as interest rate, foreign exchange rate, stock market index, credit index etc
a) Derivatives; b) Debentures; c) Futures; d) Commercial Paper; e) None of the above

28. ___________________is a standard contract based on an agreement to buy or sell an asset at a certain price at a
certain time in future. It is an obligation on the buyer to purchase the underlying instrument and the seller to sell it
a) Derivatives; b)Futures; c) Debentures; d) Options; e) None of the above

29. _________________it is a contract that binds two counterparties to exchange the different streams of payments
over the specified period at specified rate:
a) Swap; b) Option; c) Futures; d) Forward; e) None of the above

30. When it comes to the term called as CBLO, what do you mean by L in the term called as CBLO?
a) Lending; b) Liquidity; c) Leverage; d) Licence; e) None of the above

IBPS BANK EXAMINATIONS BANKING AWARENESS PRACTICE TESTS ANSWERS
70

TEST 001

1-C 2-A 3-B 4-A 5-C 6-E 7-D 8-A 9-E 10-A
11-D 12-A 13-C 14-C 15-B 16-C 17-B 18-C 19-E 20-C
21-C 22-B 23-A 24-D 25-D 26-E 27-A 28-B 29-A 30-C

TEST 002
1-B 2-C 3-D 4-A 5-B 6-C 7-D 8-A 9-C 10-C
11-C 12-B 13-C 14-D 15-D 16-A 17-C 18-C 19-D 20-A
21-D 22-B 23-D 24-D 25-C 26-A 27-E 28-C 29-A 30-A

TEST 003
1-A 2-A 3-C 4-A 5-D 6-C 7-A 8-D 9-A 10-B
11-E 12-C 13-C 14-A 15-A 16-B 17-B 18-D 19-B 20-A
21-A 22-A 23-D 24-D 25-A 26-D 27-D 28-B 29-A 30-A

TEST 004
1-E 2-E 3-E 4-D 5-C 6-D 7-B 8-B 9-D 10-C
11-D 12-D 13-D 14-D 15-D 16-A 17-D 18-C 19-D 20-A
21-B 22-D 23-A 24-B 25-C 26-E 27-E 28-E 29-C 30-D

TEST 005
1-E 2-D 3-D 4-E 5-D 6-A 7-A 8-A 9-A 10-E
11-A 12-B 13-E 14-B 15-B 16-C 17-A 18-D 19-A 20-B
21-A 22-B 23-D 24-A 25-A 26-A 27-A 28-A 29-A 30-C

TEST 006
1-D 2-A 3-A 4-D 5-E 6-E 7-D 8-A 9-C 10-E
11-A 12-B 13-A 14-C 15-A 16-B 17-A 18-E 19-E 20-B
21-B 22-A 23-E 24-E 25-D 26-E 27-D 28-A 29-A 30-C

TEST 007
1-A 2-B 3-C 4-D 5-E 6-E 7-B 8-B 9-E 10-E
11-E 12-B 13-C 14-B 15-D 16-D 17-E 18-A 19-B 20-D
21-A 22-B 23-A 24-D 25-B 26-A 27-D 28-E 29-A 30-D

TEST 008
1-D 2-E 3-C 4-B 5-B 6-D 7-D 8-D 9-D 10-B
11-C 12-D 13-B 14-D 15-D 16-B 17-B 18-B 19-E 20-B
21-D 22-C 23-A 24-D 25-E 26-D 27-A 28-B 29-B 30-C

TEST 009
1-D 2-E 3-C 4-B 5-A 6-A 7-E 8-B 9-A 10-C
11-B 12-C 13-E 14-B 15-A 16-A 17-A 18-A 19-B 20-D
21-B 22-B 23-C 24-C 25-C 26-D 27-D 28-B 29-D 30-B

TEST 010
1-E 2-B 3-D 4-A 5-A 6-E 7-D 8-A 9-B 10-E
11-B 12-B 13-B 14-D 15-E 16-E 17-E 18-D 19-E 20-C
21-D 22-B 23-B 24-C 25-B 26-B 27-B 28-B 29-B 30-E

TEST 011
1-D 2-D 3-D 4-E 5-E 6-C 7-C 8-B 9-B 10-B
11-A 12-C 13-A 14-D 15-C 16-E 17-D 18-E 19-A 20-B
21-A 22-A 23-A 24-C 25-D 26-D 27-D 28-C 29-D 30-E

TEST 012
1-E 2-B 3-A 4-E 5-A 6-A 7-A 8-A 9-A 10-C
11-C 12-C 13-B 14-A 15-C 16-B 17-D 18-B 19-A 20-C
21-C 22-B 23-B 24-A 25-A 26-B 27-A 28-A 29-B 30-C

TEST 013
1-C 2-C 3-A 4-D 5-D 6-B 7-C 8-B 9-B 10-E
11-B 12-D 13-D 14-B 15-B 16-A 17-B 18-E 19-E 20-D
21-D 22-D 23-D 24-E 25-A 26-E 27-E 28-A 29-D 30-E

71

TEST 014

1-A 2-D 3-B 4-B 5-C 6-E 7-D 8-B 9-D 10-A
11-C 12-A 13-C 14-B 15-B 16-D 17-D 18-B 19-E 20-E
21-E 22-E 23-D 24-E 25-D 26-A 27-A 28-A 29-D 30-A

TEST 015
1-D 2-B 3-B 4-A 5-C 6-A 7-B 8-D 9-B 10-C
11-A 12-B 13-B 14-C 15-B 16-C 17-A 18-C 19-B 20-A

TEST 016
1-B 2-A 3-A 4-A 5-E 6-B 7-A 8-A 9-A 10-A
11-C 12-D 13-A 14-D 15-C 16-D 17-D 18-C 19-C 20-D

TEST 017
1-E 2-B 3-E 4-B 5-B 6-E 7-E 8-E 9-E 10-E
11-B 12-E 13-E 14-E 15-C 16-E 17-A 18-E 19-E 20-E
21-B 22-E 23-E 24-D 25-B 26-C 27-D 28-A 29-E 30-E

TEST 018
1-E 2-D 3-D 4-A 5-A 6-B 7-A 8-D 9-A 10-E
11-D 12-A 13-A 14-E 15-E 16-E 17-E 18-B 19-E 20-A
21-D 22-C 23-A 24-A 25-C 26-E 27-C 28-E 29-E 30-D

TEST 019
1-C 2-A 3-A 4-A 5-B 6-C 7-E 8-E 9-A 10-B
11-A 12-D 13-A 14-A 15-B 16-A 17-B 18-C 19-C 20-B
21-E 22-A 23-B 24-C 25-B 26-E 27-B 28-E 29-C 30-D

TEST 020
1-D 2-B 3-B 4-A 5-B 6-E 7-A 8-D 9-C 10-E
11-A 12-A 13-B 14-B 15-C 16-A 17-A 18-A 19-A 20-A
21-A 22-C 23-A 24-A 25-E 26-E 27-D 28-B 29-D 30-D

TEST 021
1-B 2-A 3-E 4-D 5-A 6-A 7-B 8-D 9-A 10-A
11-B 12-A 13-B 14-E 15-B 16-C 17-A 18-A 19-B 20-E
21-A 22-E 23-A 24-E 25-A 26-D 27-A 28-C 29-A 30-A

TEST 022
1-A 2-E 3-B 4-B 5-A 6-A 7-E 8-E 9-E 10-B
11-A 12-B 13-A 14-C 15-B 16-D 17-B 18-A 19-E 20-A
21-A 22-B 23-A 24-A 25-A 26-E 27-A 28-E 29-A 30-E

TEST 023
1-A 2-A 3-A 4-A 5-D 6-A 7-C 8-E 9-A 10-A
11-A 12-D 13-A 14-A 15-A 16-A 17-C 18-A 19-D 20-A
21-C 22-B 23-A 24-A 25-A 26-B 27-D 28-E 29-C 30-A

TEST 024
1-E 2-A 3-E 4-B 5-D 6-E 7-D 8-E 9-B 10-D
11-E 12-C 13-E 14-A 15-A 16-D 17-E 18-B 19-A 20-E
21-E 22-E 23-E 24-D 25-C 26-D 27-A 28-A 29-E 30-E

TEST 025
1-E 2-C 3-B 4-E 5-D 6-E 7-E 8-D 9-E 10-E
11-D 12-A 13-A 14-D 15-C 16-E 17-D 18-D 19-D 20-B
21-E 22-E 23-B 24-D 25-E 26-B 27-A 28-D 29-D 30-A

TEST 026
1-D 2-A 3-A 4-A 5-A 6-B 7-C 8-C 9-A 10-A
11-E 12-C 13-B 14-E 15-B 16-E 17-E 18-B 19-B 20-A
21-A 22-D 23-C 24-D 25-A 26-B 27-B 28-D 29-A 30-C

72

TEST 027

1-A 2-E 3-C 4-B 5-C 6-E 7-E 8-A 9-B 10-B
11-B 12-A 13-B 14-A 15-E 16-C 17-E 18-E 19-A 20-C
21-A 22-E 23-D 24-D 25-D 26-D 27-A 28-A 29-D 30-B

TEST 028
1-E 2-C 3-A 4-C 5-E 6-C 7-C 8-D 9-D 10-E
11-A 12-A 13-D 14-E 15-A 16-C 17-D 18-E 19-C 20-A
21-A 22-A 23-A 24-C 25-D 26-E 27-D 28-B 29-C 30-A

TEST 029
1-A 2-B 3-B 4-A 5-A 6-B 7-B 8-B 9-D 10-A
11-B 12-C 13-E 14-E 15-A 16-D 17-E 18-C 19-E 20-B
21-E 22-A 23-E 24-E 25-E 26-B 27-C 28-B 29-A 30-D

TEST 030
1-E 2-A 3-A 4-E 5-A 6-A 7-C 8-A 9-D 10-D
11-D 12-C 13-A 14-D 15-D 16-C 17-B 18-E 19-B 20-A
21-B 22-E 23-E 24-B 25-B 26-D 27-B 28-D 29-B 30-B

TEST 031
1-A 2-B 3-C 4-C 5-A 6-D 7-A 8-B 9-E 10-E
11-B 12-C 13-C 14-D 15-D 16-E 17-D 18-A 19-E 20-B
21-A 22-B 23-A 24-B 25-B 26-A 27-A 28-A 29-D 30-A

TEST 032
1-B 2-C 3-B 4-B 5-C 6-E 7-D 8-D 9-A 10-D
11-A 12-B 13-E 14-B 15-B 16-B 17-C 18-A 19-C 20-E
21-E 22-B 23-D 24-E 25-D 26-A 27-A 28-B 29-E 30-A

TEST 033
1-E 2-D 3-B 4-E 5-C 6-C 7-D 8-A 9-B 10-A
11-D 12-D 13-C 14-A 15-E 16-E 17-D 18-C 19-E 20-A
21-D 22-A 23-E 24-E 25-C 26-D 27-E 28-E 29-E 30-A

TEST 034
1-A 2-A 3-E 4-E 5-D 6-E 7-D 8-E 9-D 10-D
11-A 12-E 13-A 14-A 15-D 16-A 17-A 18-A 19-C 20-A
21-A 22-A 23-A 24-E 25-A 26-E 27-A 28-B 29-A 30-A

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IBPS Bank examinations Mock tests on Banking Awareness by A. Gauri Sankar

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