education quebsbsbsbndndnbdbstion on banking.ppt

Bank related questions

1. PRINCIPLES OF BANKING
Sample Questions and Sample Questions and
AnswersAnswers
Multiple ChoiceMultiple Choice

2. Question 1Question 1
Which of the following instruments is used by Which of the following instruments is used by
public to directly lend to the Government?public to directly lend to the Government?

(a) Bank Deposits(a) Bank Deposits

(b) Public Provident Fund(b) Public Provident Fund

(c) T-Bills(c) T-Bills

(d) Certificates of Deposit(d) Certificates of Deposit
Answer 1: b

3. Question 2Question 2

Inter-bank call money refers to borrowing Inter-bank call money refers to borrowing
among banks foramong banks for

(a) Overnight(a) Overnight

(b) Two days(b) Two days

(b) More than 14 days(b) More than 14 days

(c) Less than 14 days(c) Less than 14 days
Answer 2: a

4. Question 3Question 3

Certificates of Deposits have to be of a Certificates of Deposits have to be of a
minimum value ofminimum value of

(a) Rupees 1 lakh(a) Rupees 1 lakh

(b) Rupees 10 lakh(b) Rupees 10 lakh

(c) Rupees 25 lakh(c) Rupees 25 lakh

(d) Rupees 1 crore(d) Rupees 1 crore
Answer 3: a

5. Question 4Question 4

Commercial paper can be issuedCommercial paper can be issued

(a) By all corporates(a) By all corporates

(b)(b) By all corporates with net worth of at By all corporates with net worth of at
least Rs. 10 croresleast Rs. 10 crores

(c) By all corporates with net worth of at (c) By all corporates with net worth of at
least Rs. 5 croresleast Rs. 5 crores

(d) Can be issued only by banks(d) Can be issued only by banks
Answer 4: c

6. Question 5Question 5

Commercial Bills market is a part ofCommercial Bills market is a part of

(a) Organised money market(a) Organised money market

(b) Unorganised money market(b) Unorganised money market

(c) Stock market(c) Stock market

(d) None of the above(d) None of the above
Answer 5: a

7. Question 6Question 6

Which of the following statements is not true?Which of the following statements is not true?

(a) Call money market deals with overnight (a) Call money market deals with overnight
loansloans

(b) As special cases, few FIs like LIC, UTI can (b) As special cases, few FIs like LIC, UTI can
borrow in the call money marketborrow in the call money market

(c) Call loans are made on a ‘clean’ basis(c) Call loans are made on a ‘clean’ basis

(d) Is a part of organised money market(d) Is a part of organised money market
Answer 6: b

8. Question 7Question 7

A scheduled commercial bank is one:A scheduled commercial bank is one:

(a) Which is included in the Second (a) Which is included in the Second
Schedule of the RBI Act 1934Schedule of the RBI Act 1934

(b) Which is included in the Banking (b) Which is included in the Banking
Regulation Act, 1949Regulation Act, 1949

(c) Both (a) and (b)(c) Both (a) and (b)

(d) None of the above(d) None of the above
Answer 7: a

9. Question 8Question 8

Indigenous bankers are regulated byIndigenous bankers are regulated by

(a) Reserve Bank of India(a) Reserve Bank of India

(b) Ministry of Finance(b) Ministry of Finance

(c) Registrar of Co-operative Societies(c) Registrar of Co-operative Societies

(d) None of the above(d) None of the above
Answer 8: d

10. Question 9Question 9

What is the current SLR requirements What is the current SLR requirements
of banks?of banks?
a)a)40% of the deposits40% of the deposits
b)b)25% of the deposits25% of the deposits
c)c)31% of the deposits31% of the deposits
d)d)None of the AboveNone of the Above
Answer 9: d

11. Question 10Question 10

What is the CRR currently prescribed What is the CRR currently prescribed
by RBI ?by RBI ?
a)a)5.5%5.5%
b)b)6.0%6.0%
c)c)6.5%6.5%
d)d)7.0%7.0%
Answer 10: c

12. Question 11Question 11

What is the stipulated share of the What is the stipulated share of the
priority sector in the net bank credit?priority sector in the net bank credit?
a)a)35%35%
b)b)20%20%
c)c)40%40%
d)d)45%45%
Answer 11: c

13. Question 12Question 12

Mutual funds are regulated byMutual funds are regulated by
–(a) Association of Mutual Funds of India (a) Association of Mutual Funds of India
(AMFI)(AMFI)
–(b) Securities and Exchange Board of India (b) Securities and Exchange Board of India
(SEBI)(SEBI)
–(c) Reserve Bank of India(c) Reserve Bank of India
–(d) None of the above(d) None of the above
Answer 12: b

14. Question 13Question 13

A growth fund isA growth fund is
–(a) One in which the money is invested in (a) One in which the money is invested in
equitiesequities
–(b) One in which the money is invested in (b) One in which the money is invested in
government bondsgovernment bonds
–(c) One in which the money is invested (c) One in which the money is invested
equally in equity and bondsequally in equity and bonds
–(d) Money is invested only in money market (d) Money is invested only in money market
instrumentsinstruments
Answer 13: a

15. Question 14Question 14
ARCIL is an example of ARCIL is an example of
(a) A financial institution(a) A financial institution
(b) A mutual fund(b) A mutual fund
(c) An asset management company set up (c) An asset management company set up
to acquire NPAs of banksto acquire NPAs of banks
(d) A discount and financing house(d) A discount and financing house
Answer 14: c