Banking and Finance

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Which of the following terms is used in Banking?

a) Epicentre
b) Pascals Law
c) Currency
d) Centre of Gravity
e) Latitude
Teaser Rates are related to which of the following types of loans?
a) Home Loans
b) Personal Loans
c) Auto Loans
d) Reverse Mortgage Loans
e) Crop Loans
Which of the following documents is/are considered as officially
valid document to satisf y KYC norms f or opening a Bank
account?
A . Passport
B. P A N
C. Aadhar number issued by Unique Identification Authority of India
a) Only (A)
b) Only (B)
c) Only (A) and (B)
d) All (A), (B) and (C)
e) Only (B) and (C)
Which of the following is NOT a Govt-sponsored organisation?
a) Small Industries Development Bank of India
b) NABARD
c) National Housing Bank
d) ICICI Bank
e) All are Govt-sponsored
Fiscal Policy is concerned with which of the following?
a) Export and Import
b) Public Revenue and Expenditure
c) Issue of Currency
d) Population Control
e) Education for all
Which of the following is the apex institution that handles
refinance for agriculture and rural development in India?
a) RBI
b) SIDBI
c) NABARD
d) SEBI
e) None of these
Foreign Exchange Reserves of India are kept in the custody of
which of the following?
a) International Bank for Reconstruction and Development
b) International Monetary Fund
c) Government Treasury
d) Reserve Bank of India
e) State Bank of India
Which of the following services is NOT provided by the post
offices in India?
a) Savings Bank Scheme
b) Retailing of Mutual Funds
c) Sale of stamps
d) Issuance of Demand Drafts
e) Life Insurance cover
Which of the following is/are the objectives of Free Trade
Agreement that India has done with many countries?
A . To provide support to entrepreneurs for setting up new projects
in tiny/SSI sectors
B. For undertaking expansion of business
C. To support technology upgradation

10.

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a) Only (A) and (B)

b) Only (B) and (C)
c) All (A), (B) and (C)
d) Only (A) and (C)
e) None of these
Which of the following organisations issues the rules of global
trade?
a) World Bank
b) World Trade Organisaton
c) Foreign Exchange Dealers Association
d) Directorate General of Foreign Trade
e) None of these
One single statement that depicts the financial position of a
bank and/or business enterprise at a given point of time is
called
a) Statement of product details
b) Reconciliation Statement
c) Balance Sheet
d) Quarterly returns submitted to RBI
e) Trading and manufacturing account
Banks borrow money from the RBI on which of the following
rates?
a) Reverse Repo Rate
b) Repo Rate
c) SLR
d) CRR
e) Savings Rate
The Reverse Mortgage scheme is launched to give benefit to
which of the following groups of the society?
a) Govt employees
b) Senior citizens
c) Unemployed youth
d) War widows
e) None of these
What does the letter M depict in the term SME as used in the
financial world?
a) Maximum
b) Medium
c) Mercantile
d) Mutual
e) Ministry
One of the major challenges banking industry is facing these
days is deliberate efforts of some people to bring money earned
through illegal activities in circulation. Which of the following
acts has been passed to prevent this activity?
a) Payment and Settlements Act
b) Banking Regulation Act
c) Negotiable Instruments Act
d) Narcotics and Psychotropic Substance Act
e) Prevention of Money Laundering Act
Which of the following organisations provides guarantee to the
exporters?
a) Exim Bank
b) Export Credit Guarantee Corporation
c) Director General Foreign Trade
d) Reserve Bank of India
e) Registrar of companies
Which of the following terms is not used in banking world?
a) Credit
b) Rate
c) Financial status
d) Discount
e) Absolute zero
What is the full form of IRR as used in banking/financial sector?

K KUNDAN

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a) Internal Rate of Return

b) Internal Revaluation Reserve
c) Investment Reserve Ratio
d) Internal Risk Return
e) None of the above
Which of the following organisations provides credit history
of the borrowers?
a) CIBIL
b) ARCIL
c) SEBI
d) RBI
e) CCIL
Banks need liquidity to meet which of the following objectives
of banking?
A . To meet deposit withdrawal
B. To fund loan demands
C. To maintain public confidence
a) Only (A)
b) Only (B)
c) Only (C)
d) Only (A) and (B)
e) Only (B) and (C)
Which of the following groups represent key industries?
A. Crude oil and electricity
B. Petroleum refining and finished steel
C. Cement and coal
a) Only (A)
b) Only (B)
c) Only (A) and (B)
d) Only (C)
e) All (A), (B) and (C)
Which of the following is covered in the list of services for
service tax purposes?
A . Insurance/health services
B. Hotel accommodation/air travel services
C. Money changers/legal services
a) Only (A)
b) Only (B)
c) Only (C)
d) Both (A) and (C)
e) All (A), (B) and (C)
Which of the following agencies is providing Unique Identity
Cards to all Indian Residents?
a) Election Commission of India
b) Ministry of Foreign Affairs
c) Govt of Maharashtra
d) Border Security Force
e) None of these
Banks make frequent changes in their product profile including
introduction of new products etc. This is called
a) Product Control
b) Product enhancement
c) Product marketing
d) Product enrichment
e) None of these
Banking and financial services all over the world are regulated
usually by the Monetary Authority of the land. Who controls
this function in India?
a) Ministry of Finance
b) SEBI
c) RBI
d) IRDA
e) FEDAI
FIMMDA stands for
a) Foreign Investment Markets and Derivatives Market Association
b) Fixed Income Money Markets and Derivatives Association
c) Fixed Income and Money Market Development Association
d) Floating Income and Money Markets Derivative Assets
e) None of these

K KUNDAN

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Which of the following terms is NOT used in banking?

a) Debit Card
b) Credit Card
c) Kisan Card
d) ELISA Test
e) None of these
Which of the f ollowing is the reason owing to which
Government charges export duty on some export items?
a) To get benefit from high international prices
b) To improve the tax collection targets
c) It is as per the international practices.
d) To ensure the smooth availability of the items in India
e) None of these
Which of the following is/are the objective(s) of our monetary
policy?
A . To anchor inflation expectations
B. To actively manage liquidity
C. To maintain interest rate regime consistent with price output
and financial stability
a) Only (A)
b) All (A), (B) and (C)
c) Both (A) and (C)
d) Only (B)
e) None of these
Which of the following will set up core banking infrastructure
for rural banks?
a) SIDBI
b) IBA
c) RBI
d) SBI
e) NABARD
What is Gross Domestic Product?
a) It is the cost of production of all final goods and services made in
the country.
b) It is the cost of services made within the borders of a country in a year.
c) It is the market value of all final goods and services made in the
country.
d) It is the market value of all final goods and services made within
the borders of a country in a year.
e) None of these
In which of the following States, Indias first Islamic Bank is
proposed to be set up?
a) Kerala
b) Tamil Nadu
c) Orissa
d) Bihar
e) None of these
Which of the following is NOT used in Economics?
a) Demand and Supply
b) Ad Valorem Tax
c) Break even
d) HIV-positive
e) Cost-benefit analysis
What is financial inclusion?
A . Easy access to bank accounts for safe parking of savings
B. Availability of cheap credits through appropriately designed loans
for poor and low income households and small entrepreneur
C. Availability of basic financial products like insurance
a) Only (A)
b) Only (B)
c) Only (C)
d) Both (A) and (B)
e) All (A), (B) and (C)
Which of the following terms is used in Economics?
a) Keynesian
b) Adsorption
c) Affinity Matrix
d) Gene Flow
e) None of these
Which of the following is/are key policy rates used by RBI to
influence interest rates?

K KUNDAN
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A. Bank Rate and Repo Rate

B. Reverse Repo Rate
C. CRR and SLR
a) Only (A)
b) Only (B)
c) All (A), (B) and (C)
d) Only (C)
e) Both (A) and (C)
Which of the following rates signals the RBIs long-term outlook
on interest rates?
a) Repo Rate
b) Reverse Repo Rate
c) Bank Rate
d) SLR
e) CRR
What do you understand by Para Banking services?
a) Eligible financial services rendered by banks
b) Utility services provided by banks
c) Services provided through business correspondents
d) Services provided to armed force personnel
e) None of these
What is Cross Border Exchange?
a) Trading of foreign currency in India
b) Trading of Indian rupee in exchange of other currencies/goods
c) Hawala transactions in Indian rupee
d) Unauthorized remittance of Indian rupee
e) None of these
Which of the following is the objective of Financial Stability
and Development Council?
a) To address inter-regulatory issues only
b) To focus on financial literacy only
c) To focus on financial inclusion only
d) Both (a) and (b)
e) All (a), (b) and (c)
Expand the term SWIFT.
a) Society for Worldwide International Financial Telecommunications
b) Society for Worldwide Interbank Financial Telecommunications
c) Society for Worldwide International Financial Transfers
d) Society for Worldwide Interbank Fiscal
e) None of these
Which of the following terms is NOT used in the Banking world?
a) Holding Company
b) Postdated cheque
c) Credit
d) Time deposit
e) Centripetal force
Loans of small or very small amounts given to low-incomegroup people are known as
a) Investment Loans
b) Micro Credit
c) Saving loans
d) Secured loans
e) Cash credit loans
Which of the following is the Central Bank of USA?
a) Federation of Banks, USA
b) Citigroup, USA
c) Bank of America
d) Central Bank of USA
e) Federal Reserve
The activity of purchasing shares of various companies is called
a) Online Trading
b) Share Trading
c) Real estate investment
d) Corporate Trading
e) None of these

K KUNDAN

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Telecom Sector is considered as

a) Priority sector
b) Non-priority sector
c) Infrastructural sector
d) Sector with special status
e) Core-Energy sector
The Economic Survey is compiled by the
a) Ministry of Home Affairs
b) Ministry of Finance
c) Ministry of Rural Development
d) Central Board of Direct Taxes
e) Central Statistical Organisation
Who amongst the following was the Head of the committee which
gave its recom-mendations on the modalities for Capital Account
Convertibility?
a) Dr Rakesh Mohan
b) Dr C Rangarajan
c) SS Tarapore
d) KJ Udeshi
e) None of these
The base year for Consumer Index has now been revised from 1982
to
a) 1990
b) 1991
c) 1996
d) 1998
e) 2001
Deflation refers to .
a) general decline in prices of various commodities and services
b) price decline in specific sectors
c) price decline in specific commodities
d) sharp and sudden decline in foreign exchange reserves
e) None of these
Which of the following agencies in India is responsible for
computation of national income?
a) NCAER
b) CSO
c) NSS
d) RBI
e) SBI
The Agriculture Insurance Company was launched with the help
of
a) RBI
b) SIDBI
c) NABARD
d) ECGC
e) IDBI
Which of the following is the full form of KCC as used in the
agriculture sector?
a) Kisan Credit Card
b) Kisan Credit Company
c) Knowledge Credit Corporation
d) Konkan Credit Corporation
e) None of these
In respect of which one of the following areas, YH Malegam
Committee has submitted its recommendations?
a) Interest on Micro-Finance Loans
b) Teaser loans
c) Rural development
d) Advances to agriculture
e) None of these
Which of the following organisations/agencies is actively
involved in drafting the Union Budget of India?
a) The Planning Commission
b) The Comptroller and Auditor General
c) Administrative staff of the Lok Sabha
d) Ministry of Finance
e) Ministry of Rural Development

K KUNDAN

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Which of the following is/are the Non-Tax Revenue components

of the Union Budget of India?
A. Custom Duties
B. Interest Receipts
C. Dividend and Profits
a) Only (A) and (B)
b) Only (B)
c) Only (B) and (C)
d) Only (C)
e) All (A), (B) and (C)
The investments done by Those financial entities which were
launched or incorporated in a foreign country but are investing
in an Indian venture in India are generally known as
a) Patent Money
b) Private Equity
c) Foreign Institutional Investment
d) Current Account Money
e) None of these
Which of the following is NOT a component of Indias Securities
Market?
a) Commodity Futures
b) Small Savings in National Saving Certificates
c) Government Bonds
d) Corporate Equity
e) Derivatives on currency
Which of the following is/was NOT included in the agenda set
for the Banking Reforms in India?
a) Dismantling of administered interest rates
b) Measures to strengthen risk management
c) Promulgation of SARFAESI Act
d) Promotion of the concept of easy credit to all with a guaranteed
subsidy from the Govt
e) Granting of operational autonomy to public sector banks and
allowing them to raise capital from the open market
In which of the following f ora has it been decided that all
countries will try to reduce emission to prevent further increase
in global temperature?
a) Major Economics Forum
b) World Trade Organisation
c) SAARC Summit
d) BRICS Summit
e) None of these
Which of the following was/were the objectives of the
Competition Act 2002?
A . To keep a check on unfair trade practices
B. To promote Govt-supported products/services in competition with
those launched by private parties
C. To control the activities of the stock markets in India which are
considered highly volatile
a) Only (A) and (B)
b) Only (B)
c) All (A) and (B)
d) All (A), (B) and (C)
e) None of these
Who among the following cannot open No Frill Account in a
bank?
a) Agricultural labourer
b) Student
c) A small firm selling white goods
d) Farmer
e) A labourer in unorganised sector

K KUNDAN

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63.

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68.

Which of the following Acts has specially been enacted to help

banks deal with bad loans?
a) Negotiable Instrument Act
b) Banking Regulation Act
c) Offshore Banking Act
d) Companies Act
e) SARFAESI Act
Which of the following organisations is created specially for
providing credit to small and medium enterprises in India?
a) NABARD
b) SIDBI
c) ECGC
d) AMFI
e) None of these
What is the full form of NBFC as used in the financial sector?
a) New Banking Finance Corporation
b) Non-Banking Finance Company
c) New Business Formation Company
d) Net Banking and Finance Cooperative
e) None of these
Which of the following terms is NOT used in the f ield of
Banking/Finance?
a) Goods and Services
b) Refund
c) Tax Deducted at Source
d) Fundamental duties of a citizen
e) Relief to exporters
What does the letter V denote in the term VAT as used in
banking?
a) Valuable
b) Various
c) Vendor
d) Very
e) Value
Which of the following is called the World Bank?
a) International Monetary Fund
b) Asian Development Bank
c) World Trade Organisation
d) International Reconstruction and Development Bank
e) None of these
We frequently read about MFI in newspapers. What is the full
form of this term, which is used in financial sector?
a) Micro-Finance Institutions
b) Micro-Functional Issues
c) Mutual Funds in India
d) Monetary Forum of India
e) Monetary and Financial Institutes
Micro credit or micro-finance is a novel approach to banking
with the poor. In this approach, bank credit is extended to the
poor through
a) Self-Help Groups
b) Anganwadi
c) Cooperative Credit Societies d) RBI
e) None of these
TRAI regulates the f unctioning of which of the f ollowing
services?
a) Port
b) Trade
c) Telecom
d) Transport
e) None of these
Many times we read about Hawala transactions in newspapers.
Hawala, in India, is prohibited under the provision of which of
the following Acts?
a) Fiscal Responsibility and Budget Management Act
b) Banking Regulation Act
c) Financial Action Task Force Act
d) Foreign Exchange Management Act
e) None of these

K KUNDAN

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76.

Which of the following is the popular name of the norms by

which a bank satisfies itself about the customers identity and
activities?
a) Basel norms
b) KYC norms
c) Service norms
d) Lending norms
e) None of these
Mutual funds are regulated by
a) Association of Mutual Funds of India (AMFI)
b) Securities and Exchange Board of India (SEBI)
c) Reserve Bank of India
d) IRDA
e) None of these
Bancassurance is
a) an insurance scheme to insure bank deposits
b) an insurance scheme exclusively for the employees of banks
c) a composite financial service offering both banking and insurance
products
d) a bank deposit scheme exclusively for employees of insurance
companies
e) None of these
Which of the following bills presented in the Parliament will
bring some changes in the existing tax regime?
a) Direct Taxes Code (DTC) Bill
b) Foreign Exchange Management Regulatory Bill
c) Companies Act Bill
d) Salaries and Perks for MPs Bill
e) None of these
The full form of PIN in the parlance of an ATM card is
a) Permanent Information Number
b) Personal Identification Number
c) Professional Identification Number
d) Permanent Identification Number
e) Personal Index Number
Which of the following is not a function of the RBI ?
a) Maintaining Forex
b) Deciding Bank Rate, CRR and SLR from time to time
c) Opening Savings Accounts for general public
d) Prescribing the Capital Adequacy Ratio
e) Currency Management
Obligation of a banker to maintain secrecy is applicable to
a) only in case of existing deposit accounts
b) only in case of existing loan accounts
c) only in case of closed accounts
d) in all types of deposit/loan accounts (existing/closed)
e) None of these
Banks, today, in addition to normal banking services, offer which
of the following services?
a) Internet Banking
b) Depository Services
c) Financial Counselling Services
d) Only (a) and (b) above
e) All (a), (b) and (c) above

K KUNDAN

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Which of the following cannot be called an anti-inflationary

measure?
a) Raising the Bank Rates
b) Raising the Reserve Ratio Requirements
c) Purchasing securities in the Open Markets
d) Rationing of the Credit
e) None of these
Which of the following is the major marine food export item of
India?
a) Frozen Fish
b) Frozen Shrimp
c) Frozen Crab
d) Cephalopod
e) None of these
In context of business and banking, what is CRAR?
a) Capital to Risk (Weighted) Asset Ratio
b) Credit to Risk Asset Ratio
c) Credit to Risk Assessment Ratio
d) Capital to Risk Assessment Rate
e) Credit Rate Assessment Ratio
The monetary authority in India, viz Reserve Bank of India, is
bound to maintain a reserve against the notes issued, whatever
may be the amount. This system is called as
a) Minimum Reserve System
b) Proportional Reserve System
c) Maximum Fiduciary Issue System
d) Simple Deposit System
e) None of these
Consider the following:
(A) Bank Rate Policy
(B) Open Market Operations
(C) Devaluation of Rupee
Which of the above are called fiscal measures?
a) Only (A)
b) Both (A) and (B)
c) Both (A) and (C)
d) Only (C)
e) None of these
Interest rates on which of the following deposit schemes is
fixed by the Reserve Bank of India?
a) Fixed deposits above five years maturity
b) Recurring deposits
c) Savings bank
d) Flexi Deposit scheme
e) None of these
Which of the following policies is known as Annual Policy
Statement?
a) Annual budget of Central Govt
b) Credit and monetary policy of RBI
c) Foreign trade policy of DGFT
d) Regulations issued by SEBI
e) None of these
Govt shareholding in public sector banks cannot be below
a) 33%
b) 51%
c) 74%
d) 76%
e) 100%
As we all know, Govt of India collects tax revenue on various
activities in the country. Which of the following is a part of
the tax revenue of the Govt?

K KUNDAN

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A. Tax on Income
B. Tax on Expenditure
C. Tax on Property or Capital Asset
D. Tax on Goods and Services
a) Both (A) and (C) only
b) Both (B) and (D) only
c) All (A), (B), (C) and (D)
d) Only (B), (C) and (D)
e) None of these
Which of the following Acts was framed specially to deal more
effectively with the problem of Non-Performing Assets in banking
system?
a) Companies Act
b) Banking Regulation Act
c) Foreign Exchange Management Act
d) Industrial Dispute Act
e) SARFAESI Act
Very often we read in newspapers/magazines about Sovereign
Wealth Funds . Which of the f ollowing is/are the correct
description of the same?
A . These are the funds or the reserves of a government or central
bank of a country which are invested further to earn profitable
returns.
B. These are the funds which were accumulated by some people
over the years but were not put in active circulation as they
retain them as black money for several years.
C. The funds which are created to be used as relief funds or bailout
packages.
a) Both (B) and (C) only
b) Only (B)
c) Only (C)
d) Only (A)
e) None of these
Credit Rating
a) is used to rate the borrowers while giving advances.
b) is used to work out performance of the employees.
c) is used to calculate the number of excellent audit-rated branches.
d) is not used in any bank.
e) is necessary before giving promotion to employees.
The names of which of the following rates/ratios cannot be
seen in financial newspapers?
a) Bank Rate
b) Repo Rate
c) Statutory Liquidity Ratio
d) Cash Reserve Ratio
e) Pulse Rate
Invisible Export means export of
a) Perishable goods
b) Prohibited goods
c) Unrecorded goods
d) Goods through smuggling
e) Services
Ten-rupee notes contain the signature of
a) Finance Secretary, GOI
b) Chairman, State Bank of India
c) Governor, Reserve Bank of India
d) Finance Minister, GOI
e) Prime Minister
In Banking terminology, NPA means
a) No-Promise Account
b) Non-Personal Account
c) Non-Performing Asset
d) Net Performing Asset
e) New Promising Ambience

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101.

Govt of India has launched special Green Revolution project for

which of the following states/group of states?
a) North-East states
b) Bihar and Jharkhand
c) West Bengal
d) Tamil Nadu and Kerala
e) None of these
Which of the following sector(s) make(s) maximum contribution
to the national income of india?
a) Services
b) Agriculture
c) Industry
d) Both Agriculture and Industry
e) None of these
Which of the following is not a part of the scheduled banking
structure in India?
a) State Co-operative Banks
b) Public Sector Banks
c) Private Sector Banks
d) Regional Rural Banks
e) Moneylenders
Which of the following is known as Plastic Money?
A. Demand Draft
B. Credit Card
C. Debit Card
a) Only (A)
b) Only (B)
c) Only (C)
d) Both (B) and (C)
e) All (A), (B) and (C)
Which of the following terms is used in the field of Finance
and Banking?
a) Gauge pressure
b) Quantum number
c) Adjustment credit
d) Absolute zero
e) Single bond
Goods and Services Tax ( GST) would replace which of the
following taxes levied at present?
a) Income tax
b) Corporate tax
c) Capital gains tax
d) Value added tax (VAT)
e) All of these
IFRS stands for
a) International Financial Reporting Standards
b) Indian Financial Rating Standards
c) International Financial Rating Standards
d) Indian Functional Reporting Standards
e) None of these
KYC guidelines followed by the banks have been framed on the
recommendations of the
a) Ministry of Home Affairs
b) Ministry of Rural Development
c) Indian Banks Association
d) Financial Intelligence Unit
e) Reserve Bank of India
Bridge loans refer to
a) Loans granted to construction companies for construction of
bridges
b) Loan granted to PWD for construction of bridges over rivers
c) Interim finance allowed by banks to their customers, pending
disbursement of term loans by financial institutions
d) Loan granted to Railway for construction of bridges
e) None of these
On which one of the f ollowing issues has IMF supported
monetary policy of India?

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a) Introduction of GST
b) Stimulus for agriculture sector
c) Concessions for foreign investment
d) Tightening of monetary policy
e) None of these
In the term STRIPS, the first letter S denotes
a) Single
b) Small
c) Special
d) Savings
e) Separate
When the loan is granted for purchase of white goods, it is called
a) Consumption loan
b) White goods loan
c) Consumer durable loan
d) Business loan
e) Proprietary loan
Structure of Basel II is based on how many pillars?
a) Two
b) Ten
c) Four
d) Five
e) Three
Expand the term FRBM.
a) Financial Responsibility and Business Management
b) Fiscal Responsibility and Business Management
c) Financial Responsibility and Budget Management
d) Fiscal Responsibility and Budget Management
e) Formal Responsibility and Business Management
Which of the following organisations/agencies has established
a fund known as Investor Protection Fund?
a) RBI
b) SIDBI
c) Bombay Stock Exchange
d) Ministry of Finance
e) Ministry of Commerce and Industry
Which of the following terms is used in the field of Banking?
a) MRI
b) Refraction
c) Depository Receipt
d) Neutralisation
e) Atomic Number
Reverse Repo is a tool used by RBI to
a) Inject liquidity
b) Absorb liquidity
c) Increase the liquidity with banking system
d) To keep the liquidity at one level
e) None of these
Many times we read a term CBS used in banking operations.
What is the full form of the letter C in the term CBS?
a) Complete
b) Credit
c) Continuous
d) Core
e) None of these
GNP stands for
a) Gross National Product
b) Group Net Product
c) Grand Nuclear Process
d) Group Networking Process
e) None of these
SEBI is a/n
a) Advisory body
b) Statutory body
c) Constitutional body
d) Non-statutory body
e) Registered as a society
Mixed Economy means
a) Co-existence of small and large industries
b) Promoting both agriculture and industries in the economy
c) Co-existence of public and private sectors
d) Co-existence of the rich and the poor
e) Existence of wholesale and retail markets

K KUNDAN

113.

114*.

115*.

116*.

117.

118*. The expansion for BIFR, in the context of the Indian industry,
is
a) Board for Investment and Financial Redevelopment
b) Bureau for Industrial and Financial Revolution
c) Board for Investment and Formal Reconstruction
d) Board for Industrial and Financial Reconstruction
e) Bureau for Investment and Financial Reconstruction
119. Who amongst the following is NOT a famous economist?
a) Amartya Sen
b) Octavio Paz
c) Muhammad Yunus
d) Peter A Diamond
e) Dale I Mortensen
120. Which of the f ollowing is not a measure adopted by the
Government or RBI to control inflation?
a) Monetary Policy
b) Fiscal Policy
c) Public Distribution System
d) Price Control
e) Financial Inclusion
121. The main function of the IMF is
a) to help solve balance-of-payments problems of member countries
b) to arrange international deposits from banks
c) to act as private sector lending arm of the World Bank
d) to finance investment loans to developing countries
e) None of these
122. As per notification issued by RBI, circulation of which of the
following coins shall be ceased wef 29th June, 2011?
a) `1
b) 50 paise
c) 25 paise
d) Both (b) and (c) above
e) None of these
123. Which of the following bodies promoted Securities Trading
Corporation of India Limited (STCI) jointly with the Public Sector
Banks?
a) Securities Exchange Board of India
b) ICICI Ltd
c) IDBI Ltd
d) Reserve Bank of India
e) IRDA
124*. Which of the following is the most active segment of the money
market in India?
a) Call Money/Notice Money Market
b) Repo/Reverse Repo
c) Commercial Paper (CP)
d) Certificate of Deposit (CD)
e) None of these
125*. Which of the following schemes is related ex clusively to
Financial Inclusion?
a) Swawalamban
b) Swadeshi
c) Swabhiman
d) SGSY
e) None of these
126*. Consider the following.
A. Deposit rates
B. Base Rate
C. Prime Lending Rate
Which of the above are decided by the Reserve Bank of India?
a) Only (A)
b) Only (B)
c) Only (C)
d) Both (B) and (C)
e) None of these
127. Which of the following is the biggest borrower in India?

K KUNDAN

128.

129.

130*.

131*.

132.

133.

a) Indian Government
b) Reserve Bank of India
c) Indian Railways
d) State Governments
e) Public Sector Undertakings
Which of the following would result in a fall in asset prices?
a) Low liquidity in the economy
b) High liquidity in the economy
c) RBI increasing the Reverse Repo Rates
d) RBI allowing more banks to play
e) None of these
Which of the following organisations/agencies works solely to
monitor and arrange flow of agriculture credit in India?
a) NABARD
b) SIDBI
c) RBI
d) SEBI
e) None of these
Insurance companies in India are regulated by
a) AMFI
b) IRDA
c) SEBI
d) RBI
e) NABARD
The currency notes of which of the following denominations
are not printed in India?
a) `5
b) `10
c) `50
d) `2,500
e) `1,000
Union Budget, which is presented every year in the parliament,
is also known as
a) General Budget
b) Common Budget
c) Annual Budget
d) Finance Report of the Year
e) Statement of Allocation of Funds
Which of the following is not the name of a bank functioning
in India?
a) Central Bank of India b) UCO Bank
c) Aegon Religare
d) Dena Bank
e) ICICI Bank
When banks accept a fixed sum of money from an individual for
a definite term and pay on maturity with interest, the deposit
is known as
a) Term deposit
b) Demand deposit
c) Bond
d) Mortgage
e) Advance
Which of the following terms is NOT used in Banking/Financerelated matters?
a) Discount Rate
b) Letter of Credit
c) Cheque Clearing
d) General Ledger
e) Law of Motion
Which of the following is NOT a part of the Ministry of Finance?
a) Department of Financial Services
b) Department of Expenditure
c) Department of Revenue
d) Department of Disinvestment
e) Department of Resource Planning
Which of the f ollowing is a leading electronic-payment
technology firm ? (The logo of the firm can be seen printed on
credit cards/ATM centres etc.)
a) Visa
b) Max
c) BSE
d) Sensex
e) SWAP
Global Market means market of
a) USA
b) China
c) OPEC members
d) European Union Countries
e) All major countries and their alliances

K KUNDAN

134*.

135.

136.

137.

138.

139.

140*.

141.

142*.

143*.

144.

What is the full form of CRR as used in banking sector?

a) Crucial Reserve Rate
b) Cash Reserve Ratio
c) Compulsory Return Rate
d) Credit and Reserve Ratio
e) None of these
What is the full form of LAF, as used in banking world very
frequently?
a) Liquid Advances Finance
b) Liquidity Adjustment Facility
c) Legal Adjournment Formality
d) Local Advance Finance
e) Late Arrival of Finance
Where is the headquarters of the International Monetary Fund
( IMF) ?
a) Geneva
b) Paris
c) London
d) Manila
e) Washington DC
As per newspaper reports, ANZ was given licence to open a
branch in Mumbai. ANZ is a bank based in
a) Australia
b) Argentina
c) Afghanistan
d) Angola
e) Austria
Whenever somebody needs foreign currency against Indian Rupee,
banks give equivalent amount of desired currency based on
prevalent
a) bank rate
b) currency rate
c) policy rate
d) exchange rate
e) base rate
Foreign currencies are represented in various abbreviations.
What is meant by USD?
a) US Dollar
b) UAE Dinar
c) Unit of Cunency of Denmark
d) Ukrainian Soviet Dollar
e) None of these
Many Regional Rural Banks are given licence to open branches
in small cities and towns. These licences are given by
a) Cabinet Committee on economic affairs
b) Reserve Bank of India
c) NABARD
d) Indian Banks Association
e) None of these
Which of the following organisations/agencies is not associated
with the world of Banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) SPCA
Banks recover term loan from the parties in EMIs. What does
the letter E represent in the term?
a) Easy
b) Effective
c) Equated
d) Essential
e) Economical
Which of the following is not a scheduled Commercial Bank?
a) IDBI Bank
b) Axis Bank
c) HDFC Bank
d) NABARD
e) Kotak Mahindra Bank
POSCO is a company which manufactures
a) Cement
b) Pharma products
c) Sugar
d) Textiles
e) Steel

K KUNDAN
145*.

146.

147*.

148*.

149*.

150*. The financial results of banks and other organisations normally

are expressed in quarters. What does Q-1 mean?
a) Results of January-March
b) Performance during April-June
c) Profits during July-September
d) The period when the profits are highest
e) None of these
151. Which of the following certainly is an effort in the direction of
Financial Inclusion?
a) Internet Banking
b) Anywhere Banking
c) No-frills Accounts
d) Foreign Currency Accounts
e) All of these
152. Who amongst the following Padma Bhushan awardees is a famous
banker?
a) Azim H Premji
b) Kapila Vatsyayan
c) Chanda Kochar
d) Waheeda Rehman
e) Brajesh Mishra
153*. What does the letter P denote in the term PAN, which is issued
by the Income Tax Department?
a) Provisional
b) Private
c) Personal
d) Permanent
e) Postal
154*. How many banks were nationalised in July 1969 when the first
nationalisation took place?
a) 5
b) 8
c) 10
d) 14
e) None of these
155*. The head office of the Unique Identification Authority of India
is located in
a) Bangalore
b) Mumbai
c) New Delhi
d) Chennai
e) Hyderabad
156. Which of the following is called the Bankers Bank in India?
a) State Bank of India
b) Central Bank of India
c) NABARD
d) Reserve Bank of India
e) None of these
157. As we know, a lot of new concepts are being used in the field of
banking these days. Which of the following is NOT one such
concept/product directly associated with banks?
a) F-payment
b) SMS Alert
c) ATM/Debit Card
d) Demat Account
e) Number Portability
158. Which of the following is NOT a Nation-alised Bank?
a) Union Bank of lndia
b) Central Bank of India
c) Yes Bank
d) Syndicate Bank
e) Indian Bank
159. Who amongst the following cannot open an account in any bank
in India?
a) One who is not earning regularly
b) A housewife
c) A student of 10th Standard
d) A farmer who owns a small piece of land
e) An individual who is well-to-do but his source of income is not
kn ow n

K KUNDAN

160. A major Public Sector Bank raised interest rates on loans by 25

basis points. This means the bank has raised interest by 25 basis
points of
a) Savings Bank Interest Rate
b) Base Lending Rate
c) Repo Rates
d) Present Rates on Deposits
e) Discounted Rates of Interest
161. The Finance Minister of India in one of his press conferences
said that inflationary pressure is likely to continue following
recent increase in rates of some commodities in international
markets. Which of the following commodities was he referring
to as it gets frequent increase at international levels and disturbs
our Home Economy substantially ?
a) Gold and Silver
b) Petroleum products
c) Tea and Coffee
d) Sugar
e) Jute and Jute products
162. Immediately prior to change in the measure of Food Inflation,
which of the following indexes was being used for measuring it?
a) Wholesale Price Index
b) Consumer Price Index
c) Interest Rates offered by banks on deposits
d) Sensex and Nifty
e) None of these
163. What is the full form of FINO, a term we see frequently in
financial news-papers?
a) Financial Investment Network and Operations
b) Farmers Investment in National Organisation
c) Farmers Inclusion News and Operations
d) Financial Inclusion Network and Operations
e) None of these
164. Which of the following is/are commodity/ies on which subsidy
is given to farmers/poor in India?
A. Fertilizer
B. Kerosene
C. LPG
a) Only (A)
b) Only (B)
c) Only (C)
d) Only (A) and (C)
e) All (A), (B) and (C)
165*. What does the letter L denote in the term LAF as referred
every now and then in relation to monetary policy of the RBI?
a) Liquidity
b) Liability
c) Leveraged
d) Longitudinal
e) Linear
166. Banks and other financial institutions in India are required to
maintain a certain amount of liquid assets like cash, precious
metals and other short-term securities as a reserve all the time.
In Banking World this is known as
a) CRR
b) Fixed Asset
c) SLR
d) PLR
e) None of these
167. Which of the following statements is true?
a) Banks cannot accept demand and time deposits from public.
b) Banks can accept only demand deposits from public.
c) Banks can accept only time deposits from public.
d) Banks can accept both demand and time deposits from public.
e) Banks can accept demand and t ime deposits only fr om
government.

K KUNDAN

168.

Interest payable on savings bank accounts is

a) not regulated by RBI.
b) regulated by State Governments.
c) regulated by Central Government.
d) regulated by RBI.
e) regulated by Finance minister.
169. Which of the following is a correct statement?
a) State Bank of India is the sole authority to issue and manage
currency in India.
b) A nationalised bank is the sole authority to issue and manage
currency in India.
c) A cooperative bank is the sole authority to issue and manage
currency in India.
d) RBI is the sole authority to issue and manage currency in India.
e) None of these
170. Accounts are allowed to be operated by cheques in respect of
a) Both savings bank accounts and fixed deposit accounts
b) Savings bank accounts and current accounts
c) Both savings bank accounts and loan accounts
d) Both savings bank accounts and cash accounts only
e) Both current accounts and fixed deposit accounts
171*. Which of the following is a correct statement?
a) Normally no interest is paid on current deposit accounts.
b) Interest is paid on current accounts at the same rate as term
deposit accounts.
c) The rate of interest on current account and savings account are
the same.
d) No interest is paid on any deposit by the bank.
e) Savings deposits are the same as current deposits.
172*. The usual deposit accounts of banks are
a) Current accounts, electricity accounts and insurance premium
accounts
b) Current accounts, post office savings bank accounts and term
deposit accounts
c) Loan accounts, savings bank accounts and term deposit accounts
d) Current accounts, sav ings bank accounts and term deposit
accounts
e) Current bill accounts and term deposit accounts
173. Fixed deposits and recurring deposits are
a) repayable after an agreed period.
b) repayable on demand.
c) not repayable.
d) repayable after death of depositors.
e) repayable on demand or after an agreed period as per banks
choice.
174. Financial inclusion means provision of
a) financial services, namely, payments, remittances, savings, loans
and insurance at affordable cost to persons not yet given the
same.
b) ration at affordable cost to persons not yet given the same.
c) house at affordable cost to persons not yet given the same.
d) food at affordable cost to persons not yet given the same.
e) education at affordable cost to persons not yet given the same.

K KUNDAN

175.

176.

177.

178.

179.

Which of the following is known as cross-selling by Banks?

A . Sale of a debit card to a credit card holder
B. Sale of Insurance policy to a depositor
C. Issuance of cash against cheque presented by a third party
a) Only (A)
b) Only (B)
c) Only (C)
d) Both (A) and (C)
e) All (A), (B ) and (C)
Which of the following states became the first state in the
country to launch RBIs e-payment system for commercial tax
payers?
a) Andhra Pradesh
b) Kerala
c) Gujarat
d) Maharashtra
e) Karnataka
When a bank returns a cheque unpaid, it is called
a) payment of the cheque
b) drawing of the cheque
c) cancelling of the cheque
d) dishonor of the cheque
e) taking of the cheque
Mortgage is a
a) security on movable property for a loan given by a bank.
b) security on immovable property for a loan given by a bank.
c) concession on immovable property for a loan given by a bank.
d) facility on immovable property for a loan given by a bank.
e) security on immovable property for a deposit received by a bank.
Which of the following types of accounts are known as Demat
Accounts?
a) Accounts which are Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken
from the bank. No other business can be conducted from there.
c) Accounts in which shar es of var ious companies are t raded in
electronic form
d) Accounts which are operated through internet banking facility
e) None of these
Who is the chairman of the committee constituted by RBI to
study Issues and Concerns in the Micro Finance Institutions
(MFI) Sector?
a) YH Malegam
b) Dr KC Chakraborty c) C Rangrajan
d) M Damodaran
e) Smt Usha Thorat
Upper limit prescribed for RTGS transaction is
a) `1 lac
b) `2 lacs
c) `5 lacs
d) `50 lacs
e) No upper limit is prescribed
Distribution of insurance products and insurance policies by
banks as corporate agents is known as
a) General Insurance
b) Non-life insurance
c) Bancassurance
d) Insurance banking
e) Deposit insurance
In order to attract more foreign exchange the Govt of India decided
to allow foreign investment in LLP firms. What is full form of
LLP as used in this reference?
a) Local Labour Promotion
b) Low Labour Projects
c) Limited Loan Partnership
d) Longer Liability Partnership
e) Limited Liability Partnership

K KUNDAN
180.

181*.

182.

183*.

184*. NEFT means

a) National Electronic Funds Transfer system
b) Negotiated Efficient Fund Transfer System
c) National Efficient Fund Transfer Solution
d) Non Effective Fund Transfer System
e) Negotiated Electronic Foreign Transfer system
185. When the rate of inflation increases
a) purchasing power of money increases
b) purchasing power of money decreases
c) value of money increases
d) purchasing power of money remains unaffected
e) amount of money in circulation decreases
186. POSCO is in the process of establishing its plants in India.
What does the letter P denote in the name POSCO?
a) Popular
b) Pallin
c) Pohang
d) Paradeep
e) Peterburg
187*. Interest on savings bank account is now calculated by banks on
a) minimum balance during the month
b) minimum balance from 7th to last day of the month
c) minimum balance from 10th to last day of the month
d) maximum balance during the month
e) daily product basis
188*. Which of the f ollowing is not considered a money market
instrument?
a) Treasury bills
b) Repurchase Agreement
c) Commercial Paper
d) Certificate of Deposit
e) Shares and bonds
189. With a view to facilitating payment of balance in the deposit
account to the person named by the depositor without any
hassles in the event of death of the account holder, the following
facility was introduced for bank accounts in our country:
a) Will
b) Registration
c) Nomination
d) Indemnity
e) Guarantee
190. Banks in our country normally publicise that additional interest
rate is allowed on retail domestic term deposits of
a) Minors
b) Married women
c) Senior citizens
d) Govt employees
e) Rural residents
191. Largest shareholder (in percentage shareholding) of a nationalised
bank is
a) RBI
b) NABARD
c) LICI
d) Govt of India
e) IBA
192. The RBI has asked banks to spell out their policy, procedures
and size of the business on which of the following aspects of
banking?
a) On-shore banking
b) Off-shore banking
c) Investments in secondary market
d) Wealth management
e) None of these
193*. Who amongst the following has asked banks to adopt six step
approach to prevent diversion of funds by the companies?
a) Company Registrar
b) SEBI
c) RBI
d) AMFI
e) All of these

K KUNDAN

194*. Through which of the following sources domestic funds are

raised by companies?
A. IPO
B. FPO
C. Commercial papers
a) Only (C)
b) All (A), (B) and (C)
c) Only (A) and (C)
d) Only (A)
e) Only (A) and (B)
195. Which of the following was the reason owing to which Govt
wants Reserve Bank of India to tighten prudential norms for
NBFCs?
a) To reduce liquidity in the market
b) It is as per Basel II requirements.
c) It is as per Bank for International Settlement (BIS) directives.
d) It is to protect NBFCs from any impact of possible economic
slowdown.
e) None of these
196. For which of the following reasons are Basel-II norms to be
followed by Commercial Banks?
a) Risk management
b) Adoption of international accounting standards
c) Restriction on bonus payments to bank executives
d) Transparency in disclosures
e) None of these
197. Which one of the f ollowing will set up core banking
infrastructure for rural banks?
a) RBI
b) NABARD
c) SIDBI
d) ISA
e) None of these
198. On which of the following issues can SEBI penalise any company
in India?
A . Violation of Banking Regulation Act
B. Violation of foreign portfolio investment guidelines
C. Violation of Negotiable Instrument Act
a) Only (A)
b) All (A), (B) and (C)
c) Only (A) and (B)
d) Only (B) and (C)
e) Only (B)
199*. Which of the following terms is used in Banking Field ?
a) Interest Rate Swap
b) Input Devices
c) Sedimentary
d) Zero Hour
e) Privilege Motion
200*. Expand the term ALM as used in Banking/Finance sector.
a) Asset Liability Mismatch
b) Asset Liability Maturity
c) Asset Liability Management
d) Asset Liability Manpower
e) None of these
201. What are teaser loan rates charged by banks?
a) Fixed rate of interest charged by banks
b) Floating rate of interest charged by banks
c) Rate of inter est in t he init ial period is less and goes up
subsequently.
d) Rate of interest in the initial period is more and it goes down
subsequently.
e) None of these

K KUNDAN

2 02 . Expand the term CCEA as used in administrative circles.

a) Cabinet Committee on External Affairs
b) Cabinet Committee on Economic Affairs
c) Cabinet Council on External Affairs
d) Cabinet Council on Economic Affairs
e) None of these
203*. What is the full form of the term LIBOR as used in financial/
banking sector?
a) Local Indian Bank Offered Rate
b) London-India Bureau of Regulations
c) Liberal International Bank Official Ratio
d) London Inter Bank Offered Rate
e) None of these
204*. Expand the term FSDC, which is used in financial sector.
a) Financial Security and Development Council
b) Financial Stability and Development Council
c) Fiscal Security and Development Council
d) Fiscal Stability and Development Council
e) None of these
205. The Govt of India and RBI are making all the efforts to provide
banking facilities to all the villages/habitations in the county.
This is the part of their policy of
a) PURA
b) Financial Inclusion
c) Swawalamban
d) Pradhan Mantri Adarsh Gram Yojana
e) None of these
206. Which of the following is NOT a Private Bank in India?
a) Yes Bank
b) HDFC Bank
c) Axis Bank
d) Kotak Mahindra Bank e) IDBI Bank
207. Which of the following is/are NOT the functions of a bank?
A . Accepting deposits from the public
B. Grant of loans and advances
C. Providing finance to all those who cannot earn enough to survive
a) Only (A)
b) Only (B)
c) Only (C)
d) All (A), (B) and (C)
e) Only (B) and (C)
208*. What does the letter F denote in the abbreviated name IIFCL?
a) Functional
b) Foreign
c) Forwarded
d) Finance
e) None of these
209. Which of the following taxes/cess is levied by States in India?
a) Tax on motor vehicles
b) Educational cess
c) Tax on hotels
d) Tax on wealth
e) All of these
210*. NAV is normally used in respect of schemes floated by
a) Banks
b) Mutual funds
c) Insurance Companies
d) Merchant banker
e) None of these
211*. Money Laundering refers to
a) Conversion of assets into cash
b) Conversion of money which is illegally obtained
c) Conversion of cash into gold
d) Conversion of gold into cash
e) Money power

K KUNDAN

212. The market value of all final goods and services produced and/
Or made with the geographical boundaries of a country in a year
is known as _______
a) Gross Domestic Product
b) Gross National Savings
c) Gross Fiscal Deficit
d) Gross Domestic Capital Formation
e) None of these
213*. Organisation of workers in which of the following groups has
proved a very effective way of providing micro finance by banks
to the rural people and poor in India ?
a) Self Help Groups
b) Vriksha Mitras
c) Shiksha Sevaks
d) Accredited Social Health Activist (ASHA)
e) Link Workers
214. Almost all Banks in India are running special schemes f or
providing banking services to rural poor. This concept is
popularly known as _________.
a) Faster Growth
b) Trade Finance
c) SME Finance
d) Investment Banking
e) Financial Inclusion
215. Which of the following Acts is enacted to help the Union Govt.
to manage its budgeted finances and fiscal deficit in a very
disciplined manner?
a) The Competition Act
b) The Banking Regulation Act
c) The Negotiable Instruments Act
d) Foreign Exchange Management Act
e) Fiscal Responsibility and Budget Management Act
216. Which of the following taxes is not levied by the Government
of India?
a) Income Tax
b) Professional Tax
c) Excise Duty
d) Dividend Distribution Tax
e) Capital Gain Tax
217. Which of the following is not a banking related term?
a) Discount
b) Credit
c) Reynolds Number
d) Post Dated Cheque
e) Time Deposit
218. Which of the following taxes was levied on the buying/selling
of various commodities on recognised exchanges in India? (It is
withdrawn now) .
a) Fringe Benefit Tax
b) Value Added Tax
c) Central Sales Tax
d) Securities Transaction Tax
e) Commodity Transaction Tax
219. Which of the following is NOT a banking related term ?
a) Creditor
b) Outstanding amount
c) Benchmark Prime Lending Rate
d) Explicit Guarantee
e) Centre Pass
220*. When a bank is financing an International Business, it in
fact, is involved in which of the following?
a) Micro Finance
b) Retail Banking
c) Core Banking
d) Trade Finance
e) All of these

K KUNDAN

221. Which of the following schemes/products launched by the banks

to provide instant loan facility to the farmers?
a) Kisan Credit Card
b) Krishi Bima Yojana
c) Crop Loan Scheme
d) Corporate Loan Scheme
e) None of these
2 22 . Insurance service provided by various banks is commonly known
as ________.
a) Investment Banking
b) Risk Management
c) Merchant Banking
d) Bancassurance
e) Micro Finance
223. The National Commodity and Derivatives Exchange Limited
(NCDEX) is located in which of the following cities?
a) Mumbai
b) Kolkata
c) Hyderabad
d) Jaipur
e) New Delhi
224. Many times we read in f inancial newspapers about the
performance of the core sectors in Economy. Which of the
following is NOT included in the core sector of the same?
a) Coal
b) Auto sector
c) Steel
d) Cement
e) Oil and Petroleum sector
225. Micro Credit means _______ .
A . Loans of small amounts to people in unorganized sector
B. Loans to Self Help Groups
C. Loans amounting Rs 50 lakhs to Rs 5 crores to Medium and
Small Industrial Units
a) Only A
b) Only B
c) Only A and B
d) All A, B and C
e) None of these
226. As we all know in India currency market is regulated by the
Reserve Bank of India (RBI), while currency futures are jointly
regulated by the RBI and which of the following other banks?
a) NABARD
b) SlDBI
c) SEBI
d) State Bank of India
e) ICICI Bank
227. As per the news published in various newspapers, the RBI has
given its permission for cash withdrawal at POS terminals.
What is the full form of POS?
a) Permitted on Sale
b) Potential of Service
c) Point of Sale
d) Permission of Sale
e) None of these
228. Which of the following is NOT a banking related term?
a) SME Finance
b) Overdraft
c) Drawing power
d) Sanctioning Authority e) Equinox
229. Bad loans in banking terminology are generally known as _________.
a) Prime Loans
b) Prime Asset
c) BPOs
d) CBS
e) NPAs
230. Many times we read in newspapers/magazines about the increase
or decrease in tax collection. Which of the following taxes is not
included in the tax collection levied by the Union Government?
a) Property Tax
b) Education Cess
c) Corporate Tax
d) Income Tax
e) Fringe Benefit Tax
231. Which of the following is NOT a banking or finance related
term?
a) Letter of Credit
b) Back up Guarantee c) LIBOR
d) Polymerization
e) Factoring Services

K KUNDAN

232. Navratna Status is awarded to which of the f ollowing

organisations / units?
a) Those IITs/IIMs who are doing good research work
b) Defence production units/factories who are showing good profits
c) Any public sector manufacturing unit doing well and earning
good profits
d) A public sector bank rated very high by the RBI in the area of
customer service and recovery of NPAs
e) None of these
233. An Indian citizen can open a Savings Account in which of the
f o llo win g?
a) SIDBI
b) RBI
c) NABARD
d) A Private Sector Bank e) None of these
234. If some people wish to start a banking company in India, they
certainly need a permission of the
a) Indian Banks Association
b) Institute of Chartered Accountants in India
c) Ministry of Finance
d) Banking Ombudsman
e) Reserve Bank of India
235. Basel Norms are related with f urther strengthening and
performance of
a) Public sector manufacturing units
b) Banking industry
c) Educational institutes
d) Hotels
e) None of these
236. Many times, we read a term ISO. What is the full form of the same?
a) International Social Organisation
b) Insurance and Social Obligations
c) International Space Organisation
d) Integrated Security Organisation
e) International Standards Organisation
237. Which of the following apex body and regulator has asked banks
to swap customer-related information so that the frauds and
defaults may be prevented in future?
a) Bombay Stock Exchange (BSE)
b) Indian Banks, Association (IBA)
c) Securities and Exchange Board of India (SEBI)
d) Reserve Bank of India (RBI)
e) None of these
238. The SBI has signed an agreement with which of the following
agencies to obtain a guarantee cover to its loans to Micro and
Small Enterprises?
a) Export Credit Guarantee Corporation
b) Credit Guarantee Trust
c) Small Industrial Development Bank of India
d) Securities and Exchange Board of India
e) None of these
239. Financial year in banks is a period from
a) January to December
b) May to June
c) April to March
d) January to April
e) None of these

K KUNDAN

240. The cooperative movement in which of the following fields

has achieved a great visible success in India?
a) Milk production
b) Banking sector
c) Textile sector
d) Cotton production
e) None of these
241. The Reserve Bank of India does not print currency notes of the
denomination of Rs
a) 20
b) 50
c) 3,000
d) 1,000
e) 500
242*. Which of the following is considered as the financial capital of
India?
a) New Delhi
b) Kolkata
c) Bangalore
d) Ahmedabad
e) None of these
243. Many times we read in financial newspapers/magazines about
Systematic Investment Plans (SIPs). SIPs are an investment
option also operated in the mode of _____
a) Mutual Funds
b) Small Savings Schemes in Post Offices
c) National Pension Fund
d) National Saving Certificates
e) None of these
244. Who amongst the following has suggested to the banks in India
to give details of fund transfers to customers via SMS/E-mails?
a) Reserve Bank of India (RBI)
b) India Banks Association (IBA)
c) Indian Institute of Banking and Finance
d) Securities and Exchange Board of India
e) None of these
245. The short term loans given to the farmers are the loans given
normally for a period of
a) three months
b) six months
c) nine months
d) one year
e) fifteen months
246. India started its five year planning with effect from the year
a) 1955
b) 1951
c) 1960
d) 1965
e) 1948
247*. The Head of the Reserve Bank of India is designated as the _____.
a) Chief Executive Officer
b) Managing Director
c) Chief Banking Officer
d) Dy Governor
e) None of these
248. Which of the following organizations was specially established
to operate in Gramin areas by design itself?
a) Commercial Banks
b) Central Financial Institutes
c) Private Banks
d) Regional Rural Banks
e) None of these
249. Which of the following is NOT a part of Indias Money Market?
a) Bill Markets
b) Call Money Market
c) Banks
d) Mutual Funds
e) Indian Gold Council
250. Which of the following is/are the measure(s) taken by the Reserve
Bank of India (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 investment.
C. Supply of additional currency notes in the market.
a) Onry (A)
b) Only (B)
c) Only (C)
d) All (A), (B) and (C)
e) None of these

K KUNDAN

Answers
1. c
7. d
13. b
19. a
25. c
31. d
37. c
43. b
49. e
55. c
61. e
67. e
73. b
79. d
85. d
91. d
97. a
103. a
109. e
115. a
121. a
127. a
133. c
139. b
145. b
151. c
157. e
163. a
169. d
175. e
181. e
187. e
193. c
199. a
205. b
211. b
217. c
223. a
229. e
235. b
241. c
247. e

2. a
8. d
14. b
20. c
26. b
32. a
38. a
44. e
50. a
56. c
62. c
68. d
74. b
80. e
86. c
92. a
98. a
104. e
110. d
116. b
122. c
128. a
134. a
140. b
146. e
152. c
158. c
164. e
170. b
176. e
182. c
188. e
194. b
200. c
206. e
212. b
218. a
224. b
230. b
236. e
242. e
248. d

3. d
9. b
15. e
21. d
27. d
33. d
39. b
45. b
51. b
57. c
63. e
69. a
75. e
81. c
87. b
93. e
99. e
105. c
111. a
117. c
123. d
129. a
135. e
141. e
147. c
153. d
159. c
165. a
171. a
177. d
183. e
189. c
195. d
201. c
207. c
213. a
219. e
225. c
231. d
237. d
243. a
249. e

4. d
10. b
16. b
22. e
28. d
34. b
40. e
46. c
52. c
58. a
64. b
70. c
76. a
82. a
88. b
94. e
100. d
106. d
112. c
118. d
124. a
130. b
136. e
142. a
148. d
154. d
160. b
166. c
172. d
178. b
184. a
190. c
196. a
202. d
208. d
214. e
220. d
226. a
232. c
238. b
244. a
250. a

5. b
11. c
17. e
23. b
29. b
35. a
41. a
47. b
53. a
59. d
65. b
71. c
77. b
83. a
89. c
95. c
101. c
107. e
113. b
119. b
125. d
131. d
137. a
143. d
149. e
155. c
161. b
167. d
173. a
179. c
185. b
191. d
197. b
203. d
209. e
215. e
221. a
227. c
233. d
239. c
245. d

6. c
12. b
18. a
24. b
30. e
36. c
42. e
48. c
54. a
60. d
66. d
72. d
78. c
84. b
90. e
96. c
102. d
108. c
114. d
120. e
126. a
132. a
138. e
144. a
150. b
156. d
162. a
168. d
174. a
180. a
186. c
192. d
198. e
204. b
210. b
216. b
222. d
228. e
234. e
240. c
246. b

K KUNDAN