General Banking MCQ 1.

As per Government of India directives, which of the following documents is not to be used for establishing identity or proof of residence ? a. Salary slip c. Credit card statements b. Ration Card d. None of these

2. In the light of changing trends in the International Banking scenario, due to globalisation, who has introduced Risk based supervision in Indian banks ? a. Government of India c. State Bank of India b. Reserve Bank of India d. World Bank

3. For a branch to be risk rated as Adequately Controlled, the scoring range should be as under a. Between 70% and <85% c. Between 60% and <80% b. Between 50% and <75% d. Between 40% and <80%

4. SAN (short account number) in IOI refers to a. the first 6 digits appearing on the IOI the IOI c. the Branch code number b. the last 6 digits appearing on

d. IFSC of the branch

5.For Interbank transfers minimum amount that can be transferred under RTGS is a. Rs 20000 c. Rs 500000 b. Rs 1 d. None of these

6. Securities held at the branch are balanced a. at half yearly intervals c. at yearly intervals b. at quarterly intervals d. at monthly intervals

7. Which of the following is correct with regard to BASEL II a. Tier I Capital ratio = 4% b. Core Tier I capital Ratio = 2%

c. The difference between the total capital requirement of 8% and the Tier I can be met with Tier II capital d. All are correct

8. Which of the following is a new initiative in BASEL III a. Capital conservation buffer weighted assets c. Counter cyclical buffer b. New calculation methodology for risk

d. All the above

9. LIC policies kept as security is entered in a. Branch document register c. Miscellaneous Securities Register b. Securities register d. LIC register

10. What should be the relationship between a banker and the customer for giving effect to a Garnishee order ? a. Debtor-Creditor c. Agent-Principal b. Creditor-Debtor d. Bailor-Bailee

11. Under SARFAESI Act, notice for possession has to be sent to borrower by a. Registered post acknowledgement due c. E-mail with written confirmation b. Courier d. All the above

12. Deferred payment guarantee is a a. Financial guarantee c. non financial guarantee b. Contingent guarantee d. None

13. What is the maximum period of repayment under NRI car loan scheme ? a. 72 months b. 48 months c. 36 months d. 84 months e. 60 months

14. Precondition for housing loan takeovers a. The house must be in possession of the applicant b. The applicant must have valid documents c. Repayment should have commenced d. All the above

15. What is the maximum loan under SBIs Tribal Plus Scheme ? a. Rs 10 lacs b. Rs 15 lacs c. Rs 25 lacs d. No limit

16. Under SBI loan to pensioners, what is the maximum age allowed for family pensioner a. 60 years b. 62 years c. 65 years d. 72 years e. None of the above

17. Maximum amount of housing loan that can be sanctioned without prior administrative approval is a. Rs 500 lacs b. Rs 100 lacs c. Rs 50 lacs d. Rs 25 lacs

18. What is the repayment period that can be fixed if we give loan for purchase of second hand vehicle which is 4 years old a. 7 years b. 5 years c. 3 years d. none of these

19. In case of agricultural advances, the cost of photograph is borne by a. borrower c. Bank b. borrower and bank 50:50 d. no photograph to be obtained

20. For conversion of crop loans to term loans which of the following is required a. Annawari certificate b. VAO certificate c. Technical Report d. MDO certificate

21. As per government directives, the share of weaker sections in banks advances should be ________% of priority sector advances a. 40% b. 25% c. 18% d. none of these

22. Financing under produce marketing loans can be made to a. all non overdue ACC/KCC borrowers of the bank b. all crop loan borrowers of other banks c. non borrower farmers d. all of the above

23. SHG can be financed

a. 6 months after opening the savings bank account b. 3 months after formation of group c. 6 months after formation of group d. 12 months after formation of group

24. Maximum loan amount that can be sanctioned under Agri Gold loan is a. Rs 3 lacs b. Rs 10 lacs c. 5 times of the annual farm income

d. no limit is stipulated

25. All the tractor models approved by SBI are tested at a. CFMTTI, Budni b. FMTTI, Hissar c. a or b d. test not required

26. DSCR exercise is useful in a. knowing the income generating capacity of the project against the given instalments of the term loans. b. deciding the repayment schedule/programme for the proposed loan c. both a & b d. none

27. Which of the following LC is reinstated (within the original value of the LC) by the value of the bill which is negotiated a. Transferable LC b. Red Clause LC c. Green clause LC d. Revolving LC

28. Which of the following is not a liquidity ratio a. Current Ratio (current assets/current liabilities) b. Quick Ratio (current assets stock or inventory/current liabilities) c. Acid test ratio (CA-stocks or inventory/CL- bank borrowings) d. TOL/TNW (Total outside liabilities/Tangible net worth)

29. A contract to buy or sell a specified amount of currency at a specified price on a specified future date is called

a. futures

b. forward contract c. hedging

d. derivatives

30. A swap transaction involves a. purchase of currency b. sale of currency c. purchase of currency against sale or forward sale of the currency d. simultaneous purchase and sale of one currency against another for different settlement dates

Rationales

1. Risk focussed internal audit has been introduced in the Bank. a. Impact of deregularization and liberalization of financial sector b. As a measure of internal control system duly confirmed to BASEL norms. c. As per risk based supervision norms imposed by RBI.

2. Banking ombudsman scheme has been introduced. a. For resolution of complaints relating to certain services rendered by Banks in India b. To facilitate the satisfaction or settlements of such schemes

3. Green Channel Counter has been introduced. a. It can help in gradually migrating inactive debit cards of customers to ATMs and POS terminals at various merchants. b. The GCC saves vouchers/stationery/cheque leaves. c. It avoids VVR checking and therefore, reduces back office workload of the staff members.

4. Documents of value to the bank are entered in the Branch Documents Register. a. With a view to ensure proper custody of the documents. b. To enable retrieval of the documents immediately in case of an emergency. c. These documents are of high value to the bank.

5. Banks do not permit locker operations before commencement of business hours and after banking hours.

a. In order to avoid any liability on the part of the bank in the event of seizure of lockers by IT authorities as per section 132 of the IT Act b. To avoid any scope for allegations of collusion by the bank authorities.

6. Password security is observed in the branch a. To avert frauds which can cause loss to both individuals and to the organization. b. The sensitive information can be used by unscrupulous elements for their own vested interests.

7. Bank has decided to engage Business Correspondents and Business Facilitators a. With a view to achieve greater financial inclusion b. In order to substantially increase market share in the rural and semi urban areas.

8. Interest is to be paid to customers on delayed collection of outstation cheques a. to compensate the customer for the loss/inconvenience caused to him on account of the delay b. as a measure of good customer service, recommended by Goiporia committee c. to make branches more conscious of the need for prompt collection of cheques

9. Implementation of credit scoring models for P segment advances has been introduced a. to facilitate business growth by enhanced efficiency in the appraisal and sanction process b. Rate the borrower of a given product based on credit scores

10. Revised scoring models for tractor financing has been introduced a. To counter competition from other banks operating in rural areas. b. To tackle the rise of NPA in the agri sector

11. The Vikas Volunteer Vahini programme, also known as the Farmers Club has been initiated by NABARD a. To transmit the latest agriculture techniques to the farmers fields b. to orient the farmers to establish better relationship with the banks c. to enjoy the benefits of collective bargaining power for procuring inputs as well as for marketing of their produce

12. While financing under dairy schemes, at least two milch animals are financed a. to ensure continuous and uninterrupted supply of milk during the dry period of one of the animals, thereby ensuring cash flows for repayment. b. it is a pre requisite as per NABARD instructions

13. There is no need to deduct margin from the scale of finance while sanctioning crop loans a. The scale of finance of a crop is fixed after taking into account the cost of cultivation minus the margin, the entire amount as per scale of finance can be financed to the farmer.

14. Banks encourage bill financing a. ensures a degree of financial discipline b. a bill is self liquidating in nature c. drawee of the bill is an additional surety

15. SME Smart Score has been designed a. in order to avoid delays in credit delivery due to cumbersome assessment processes. Instead a simple scoring model is designed.

MCQ on General Awareness

1. SBI General Insurance is a joint venture with which of the following a. Cardiff SA c. IAG Australia b. Societe Generale Asset Management d. GE Capital

2. All life insurance contracts are based on utmost good faith reposed by the insurer on the facts mentioned in the application form and on the insureds health, which the applicant warrants to be true. This is a contract of a. Conditious abinitio c. uberrimae fides b. Force Majeure d. None of these

3. Funds that invest predominantly in government securities and treasury bills which is good for investors who desire safety and liquidity a. ELSS GILT Fund b. Go-Go fund c. Growth Fund d.

4. The model of investment in shares whose intrinsic value is above their market price is known as a. Upping the bottom c. Value investment b. Intelligent investment d. Scientific investment

5. The country with largest forex reserves of $ 2.4 trillion as on 31.03.2010 is a. India b. Japan c. China d. South Korea

6. What is the full form of BCBS a. Business committee on banking supervision supervision c. Basel committee on banking supervision supervision b. Basel committee on business

d.

Base

committee

on

Bankers

7. Which is the first bank to start issuance of UID cards to its staff and customers a. State Bank of India b. Punjab National Bank c. Bank of India

d. Oriental Bank of Commerce

8. The first woman President of Brazil a. Maria Ciccone b. Brittany Welton c. Dilma Rousseff d. Elizabeth Gaynor

9. The first mono rail in India is being introduced in a. New Delhi b. Ahmedabad c. Mumbai d. Vishakapatnam

10. Consumer day is celebrated on a. 15th March b. 30th November c. 1st April d. 30th September

11. Chairman cum MD of National Housing Bank is

a. Sri C.V Verma Verma

b. Sri K.C Sharma

c. Sri B.K Gupta

d. Sri R.V

12. The latest version of UCPDC, a publication of ICC is ____ and is effective from a. UCPDC 600 01.07.2007 b. UCPDC 700 27.08.2009 c. UCPDC 600 01.07.2009 d. UCPDC 600 01.07.2008

13. Which among the following countries has recently abolished the official retirement age a. Japan b. France c. Britain d. Russia

14. Which of the following is the operating system for the worlds cheapest tablet PC Aakash Which was launched in New Delhi recently a. Windows b. Linux c. Android d. Symbian

15. Which among the following is the name of the first habitable earth-like planet discovered recently a. Kepler 22b b. Kepler 10b c. Gliese 581g d. none of these

16. Recently SBI decided to set up wind power plants for its captive consumption at various SBI offices and branches in these states of India a. Maharashtra, Gujarat, Kerala b. Maharashtra, Gujarat, Karnataka c. Tamil Nadu, Gujarat, Kerala d. Maharashtra, Gujarat, Tamil Nadu

17. Which among the following is considered the pioneer of credit rating a. J Moodys b. MIB Group Inc c. Fitch Group d. Duff and Phelps

18. Which of the following news services in India offers its services in Hindi through Bhasha a. PTI b. UNI c. ANI d. Reuters e. None of these

19. Which among the following gives a justification about the fact that Green Revolution has not been green as it was made out to be 1) It was confined only to wheat 2) It was confined to selected areas only 3) It helped only big farmers Choose the correct options a. Only (1) b. 1 & 2 c. 1,2 & 3 d. 2 & 3

20. Which among the following organizations calculates and publishes the LIBOR (London Interbank Offered Rate ) a. Bank of England Federaration d. European Central Bank b. Thomson Reuters c. European Banking