Wednesday, April 4, 2012

Banking


1. The largest revenue in India is obtained from __________ 
(A) Railways(B) Excise Duty(C) Sales Tax(D) Direct Taxes
Ans : (B)
2. The tax levied by Central Government and collected by State Governmentis ________
 (A) Stamp Duty(B) Excise Duty(C) Income Tax(D) Gift Tax
Ans : (A)
3. What is the major share in revenue of State Governments?
(A) Stamp Duty(B) Excise Duty(C) Sales Tax(D) Income Tax
Ans : (C)
4. The tax levied by Local Governments i.e. Municipal Corporations andmunicipalities is ____________ (A) Income Tax(B) Wealth Tax(C) House Tax(D) Gift Tax
Ans : (C)
5. The tax collected by the State Governments and given to local bodies is __________ 
(A) Income Tax(B) Wealth Tax(C) House Tax(D) Professional Tax
Ans : (D)
6. The period for Call Money is ________ 
(A) 10 to 15days(B) 1 to 14 Days(C) 15 to 30 Days(D) One Month
Ans : (B)
7. Who regulates the money circulation in India?
(A) State Bank of India(B) Reserve Bank of India(C) NABARD(D) Commercial Banks
Ans : (B)
8. Which of the following is not an organized sector in India?
(A) Nationalised Banks(B) Regional Rural Banks(C) Cooperative Banks(D) Chits and Money lenders
Ans : (D)
9. Who will settle the grievances of customers of banks?(A) Reserve Bank of India(B) State Bank of India(C) Local Courts(D) Ombuds Men
Ans : (D)
10. Who introduced the Banking Ombudsmen Scheme?
(A) ARBI(B) SBI(C) Ministry of Finance(D NABARD
Ans : (A)
11. When was OMBUDS MEN SCHEME first introduced?
(A) November 2006(B) October 1981(C) June 1995(D) January 1998
Ans : (C)
12. Which was the firth Bank corporated by the Indians? (1881)
(A) Imperial Bank of India(B) State Bank of India(C) Avadh Commercial Bank(D) Reserve Bank of India
Ans : (C)
13. When was the Avadh Commercial Bank established?
(A) 881(B) 1894(C) 1898(D) 1899
Ans : (A)
14. When was Reserve Bank of India established?
(A) 1920(B) 1925(C) 1935(D) 1948
Ans : (C)
15. When was Reserve Bank of India Nationalised?
(A) 1947(B) 1948(C) 1949(D) 1950Ans : (C)
16. When was Indian Banking Act come into force?(A) 1948(B) 1949(C) 1950(D) 1951
Ans : (B)
17. Imperial Banks were amalgamated and changed as _________ 
(A) Reserve Bank of India(B) Tata Bank of India(C) Subsidiary Banks(D) Union Bank of India
Ans : (B)
18. When was Imperial Bank was Changed as State Bank of India?
(A) January 1st 1935(B) Feb 26 1947(C) July 1st 1955(D) July 1st 1959
Ans : (C)
19. How many banks were first nationalised?
(A) 10(B) 12(C) 14(D) 16
Ans : (C)
20. When was the second phase of nationalisation done?
(A) 9th July 1969(B) 10th July 1968(C) 16th August 1985(D) 15th April, 1980
Ans : (D)
21. How many banks were in second phase of nationalisation?
(A) 4(B) 5(C) 6(D) 7
Ans : (C)
22. Who will act as the banker to the Government of India?
(A) State Bank of India(B) Reserve Bank of India(C) NABARD(D) Nationalised Banks
Ans : (B)
23. Where is the Head Quarter of Reserve Bank of India?(A) Mumbai(B) Delhi(C) Kolkotta(D) Ahmedabad
Ans : (A)
24. Who was first governor of Reserve Bank of India?
(A) K. A. Narasimham(B) V. K. Malhotra(C) A. K. Vadia(D) A. B. A Smith
Ans : (D)
25. When was Lead Bank Scheme introduced?(A) 1967(B) 1968(C) 1969(D) 1974
Ans : (C) 
26. What is CRR?
a) Cash Reserve Ratio b) Current Ratio Rate c) Review Report d) Credit Rating Record e) None of these
Ans: (a)
 
27. Interest rates being charged by Banks in India has shown ------- trendin recent year.
a) Falling b) Rising c) Stable d) Volatile e) None of these
Ans: (a)
28. The first development financial institution in India that has got merged with a bank is
a) IDBI b) ICICI c) IDFC d) UTI e) None of these
Ans: (b)
29. Which of the following NBFC converted itself into a commercial Bank?
a) Tata Finance
b) Reliance Capital Trust
c) Birla Mutual
d) Kotak Mahindra
e) None of these
Ans: (d)
30. Which is the current revision & year of UCPDC? 
a) UCPDC 500, 1993
b) UCODC 400, 1993
c) UCPDC 300, 1973
d) None of these
Ans: (a)
31. The rate of which discounting the bills of first class banks is done by RBI is called
a) Bank Rate b) Prime Lending Rate c) Loan Rate d) Discounting Rate
Ans: (a)
32. Banking ombudsman has been constituted under which act?
a) Banking Regulation Act b) RBI Act c) SBI Act d) COPRA
Ans: (a)
33. Which finance company has been given banking licence by RB Irecently?
a) Kotak Mahindra b) Ashok Leyland & Finance c) TVS Finance d) Tata Finance
 
e) None of these
Ans: (a)
34. Gilt edged securities refer to
a) Government Securities b) Securities issued by municipal corporations c) Securities issued by first class companies d) None of these
Ans: ( c )
35. A unit of the Unit Trust of India is a
a) Share b) Debenture c) Negotiable Instrument d) None of these
Ans: (d)
36. Indian Banks Association (IBA) has a common net working system for sharing the ATM facilities in Mumbai, which is known as
a) ATM Network b) Shared Payment Network System c) Cash Network d) None of these
Ans: (b)
37. Arbitrage is
a) Buying and selling in two markets simultaneously
 
b) A rate of interest c) A Fee d) Arbitrage is a dispute e) None of these
Ans: (a)’38. E E F C denotes a) Exchange Earners Foreign Currency Account b) Importer’s account with Bank c) Account maintained by a exporter with RBI d) None of these
Ans: (a)
39. For which of the following currencies is the Indian rupee quoted against 100 units of the foreign currency a) Deutsche Mark b) Pound c) Japanese Yen d) US Dollars
Ans: ( c )’
40. Exchange risk in case of foreign currency Non Resident (Banks)scheme (FCNB) is borne by a) RBI b) Depositor c) Govt. of India d) Concerned Bank e) None of these
Ans: (d)
41. Consortium Advances refer to
a) Concurrent borrowings b) Multiple financing c) Joint Financing by more than one bank d) Financing of consignment business e) None of these
Ans: ( c )
42. NABARD refinance for financing Self Help Groups is to the extent of 
a) 25% b) 50% c) 75% d) 100% e) None of these
Ans: (d)
43. The term Allonge refers to a) The sheets of paper used in writing a deed
b) The stamps affixed on document
c) A sheet of paper attached to mortgage deed for the purpose of witness
d) A sheet of papers attached to a negotiable instrument for the purpose of making endorsement thereof when there is no space in the instrument
Ans: (d)
 
44. The provision of Consumer Protection Act, 1986 are applicable to the services rendered by the Banks
a) To the customers of the bank only b) To the customers and the users of services irrespective of against consideration or free services c) To the customers and any user of Bank’s services against consideration d) None of these
Ans: ( c )
45. As per section 16 of the Banking Regulation Act, 1949 a person can be appointed as a director of how many banking companies
a) Three b) Two c) One d) Four e) None of these
Ans: ( c )
46. Nayak Committee Recommendations are applicable for sanction of Fund Based Working Capital Limit upto
a) Rs.25 lacs b) Rs.1 crores c) Rs. 2 crores d) Rs. 5 crores e) None of these
Ans: (d)
 
47. Banking ombudsman means
a) Person appointed to recover dues from defaulting borrowers b) A person to whom customer can approach for redress of his grievances c) A person appointed to settle dispute between employees and management d) A person appointed by RBI to oversee the functioning of Foreign Banks e) None of these
Ans: (b)
48. NGO is the term associated with
a) SHG b) PMRY c) SEEUY d) Agri. Advances e) None of these
Ans: (a)
49. Full form of SLR
a) Statutory Liquidity Ratio b) State Level Recovery c) Sundry Leverage Ratio d) State Liquidity Reserve
Ans: (a)
50. C.R.A. in banking parlance stands for
a) Credit Rating Association b) Credit Rating Agency    c) Credit Risk Assessment d) None of these
Ans: ( c )
51. E.P.S. in share market stands for a) Earning per share b) Electronic Payment System c) Employee Pension Scroll d) Equated Payment System e) None of these
Ans: (a)
52. The Securitization and Reconstruction of Financial Asset and enforce of Security Interest Act came into force from a) 21.08.02 b) 21.06.02 c) 21.07.02 d) 21.12.02 e) None of these
Ans: (b)  
53. The powers of the Board of Directors to borrow from the bank are mentioned in
a) Article of Association b) Memorandum of Association c) Special Resolution d) A & B
e) None of these
Ans: (b)
54. The currency Euro has been introduced w.e.f.
a) 01.01.99 b) 01.01.2000 c) 01.08.99 d) 01.03.99 e) None of these
Ans: (a)
55. Who is authorized to permit premature closer of PPF A/c
a) RBI  b) Ministry of finance Department of Economic affairs c) Chairman of concerning Bank d) None of these
Ans: (b)
56. What is USGAAP?
a) United States Generally Accepted Accounting Principles
b) Union State Generous Agreement & Accounting Principles
c) United State General Allies & Army Practices
d) Union State Generous Accounts & Affairs and Practices
Ans: (a)
57. What is the average percentage of Banking transactions through non-branch route in private sector Banks
a) 50%
b) 60%
c) 70%
d) 65%
e) None of these
Ans: ( c )
58. The C D Ratio of all schedule commercial Banks as on June 2003stood at
a) 51%
b) 57%
c) 53%
d) 65%
e) None of these
Ans: (b)
59. The Gross NPA percentage of the following country is highest in Asia
a) India
b) China
c) Malaysia
d) Indonesia
e) None of these
Ans: (b)
60. The gross amount of NPA of Public Sector Banks as on 31.03.03 is
a) Rs.82,071 crores
b) Rs. 54,086 crores
c) Rs. 58,067 crores
d) Rs. 46,738 crores
e) None of these
Ans: (b)

 
61. To be categorized as a schedule Bank the minimum capital & reserve required is
a) Rs. 10 lacs
b) Rs. 5 lacs
c) Rs. 20 lacs
d) Rs. 7 lacs
e) None of these
Ans: (b)
62. For Business process re-engineering and IT strategy which bank has employed ‘Gartner’
a) BOB
b) SBI
c) PNB
d) BOM
e) None of these
Ans: (a)
63. The objective of Government to appoint Narsimhan Committee is
a) To strengthen the banking system
b) To improve customer service
c) To strengthen the credit portfolio
d) None of these
Ans: (a)
64. Which Bank has recently tied up with Apollo Hospital for financing medical facilities
a) ICICI
b) HDFC
c) BOB
d) SBI
e) None of these
Ans: (d)
65. The full form of RBS is
a)Risk Based Supervision
b)Rating by System
c)Role Based Supervision
d)Rating Bank Security
Ans: (a)
66. RBI has recently permitted which Bank to participate in the Government Securities Repo Market
a)SBI
b)UTI
c)ICICI
d)PNB
Ans: (b)
 
67. The fiscal deficit in 2001-2002 was ---% of GDP
a)5.1%
b)5.3%
c)5.5%
d)5.4%
Ans: (d)
68. Under the Banking Ombudsman scheme the value of claim should not exceed
a)5 lac
b)10 lac
c)15 lac
d)20 lac
Ans: (d)
69. Which Bank has introduced ‘Pre-paid Card’ first
a) OBC
b) BOB
c) Corporation Bank
d) SBI
e) None of these
Ans: (a)
70. The minimum Capital Adequacy Ratio currently fixed by RBI for Banks is
a) 12%
b) 10%
c) 9%
d) 11%
e) None of these
Ans: ( c )
71. Who can fix the interest rates of NRE & FCNB deposits ?
a) RBI
b) Banks, as per the directive of RBI
c) Govt. of India
d) IBA
Ans: (b)
72. The following is not a housing finance intermediary agency
a) HDFC
b) HUDCO
c) NHB
d) SICOM
Ans: (d)
73. Who is authorised to issue coin in India
a) RBI
b) Ministry of Finance
c) SBI
d) None of these
Ans: (b)
 
74. Bank can change interest rate without reference to its PLR in the following
a)Housing loans
b) NRE/ FCNB deposits
c) Personal loans
d)Educational loans
Ans: (b)
75. The maximum penal rate of interest that can be charged is restricted to
a) 2 %
b) 3 %
c) Maximum spread announced over PLR
d) 5 %
Ans: ( c )
76. Banks can change rate of interest beyond spread announced by themon advances granted to
a) Film companies
b) Chit funds
c) NBFC s
d) Hotels
Ans: ( c )
77. To which category of customers are banks prohibited to sanctionloans against shares and debentures?
a) Institutions
b) PSUs
c) Banks
d) Trust and endowments
Ans: (d)
78. What should be the method of valuation for advances againstshares/debentures / bonds?
a) Face value
b) Market price
c) Book Value
d) Average Value
Ans: (b)
79. Which kind of bills should not be discounted by banks as per RBIregulation?
a) Customs duty
b) Installation charges
c) Sale of goods
d) Purchase of books
Ans: (a)
80. What action is taken if one of the customers tenders forged note?
a) He is sent to prison
b) Note is returned with remark, forged note
c) Note is impounded
d) Note is torn
Ans: ( c )
 
81. A contract of insurance is a contract of 
a) Indemnity
b) Pledge
c) Guarantee
d) Hypothecation
Ans: (a)
82. Indian Companies have been allowed to invest upto US$ ---abroad
a) 10 million
b) 15 million
c) 5 million
d) 20 million
Ans: (a)
83. Restriction on number of partners in a firm is imposed by
a) Indian Companies Act 1956
b) Indian Partnership Act 1932
c) Indian Contract Act 1872
d) None of these
Ans: (b)
84. The certificate to commence business is to be called for perusal andreturned for opening of an account of
 a) Public limited company
b) Club and association
c) Private limited company
d) Trust 
Ans: (a)
85. The certificate to commence business is to be called for perusal andreturned for opening of an account of 
a) Public limited company
b) Club and association
c) Private limited company
d) Trust
Ans: ( c )
86. Where is the headquarters of SWIFT?
a) Hong Kong
b) Brussels
c) London
d) Mumbai
Ans: (b)
87. The three banks recently have entered in a Mega ATM sharing pact. They are
a) SBI, ICICI, & BOB
b) SBI, ICICI, HDFC
c) ICICI, Andhra Bank, HDFC
d) Andhra Bank, Canara Bank, SBI
e) None of these
Ans: (b)
88. The Basic Travelling quota for going abroad is
 
a) USD 10,000
b) USD 5,000
c) USD 20,000
d) USD 15,000/-
e) No ceiling
Ans: (a)
89. Which of these is not a credit rating agency?
a) Moody\’s
b) Standard & Poor’s
c) Price water house
d) ICRA
e) None of these
Ans: ( c )
90. Pari Passu charge refers to a charge
a) Ranking in priority, regardless of quantum of advances
b) Merely notional in nature
c) Ranking equally in priority in proportion to the lender’s share of advance
d) None of these
Ans: ( c )
91. What are the four categories as per Kapur Committeerecommendations for loan applications under SSI segment

a) upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacs
b) upto 10 lacs, upto 25 lacs, upto 50 lacs and above 50 lacs
c) upto 2 lacs, upto 1 crores, upto 2 crores, and above 2 crores
d) upto 2 crores, upto 25 crores, upto 50 crores and above 50 crores
e) None of these
Ans: (a)
92. NRE deposit rates have been recently lowered to
a) LIBOR + .25
b) LIBOR + .20
c) LIBOR + .30
d) LIBOR + .50
Ans: (a)
93. Who is the Governor of RBI?
a) Bimal Jalan
b) Y V Reddy
c) K J Udeshi
d) Ranga Reddy
e) None of these
Ans: (b)
94. Which Bank is ranked 7th India Company in the ET 2003 for listing asper market capitalization?
a) ICICI
b) HDFC
c) SBI
d) BOB
Ans: ( c )
 
95. Recently ICICI issued winding up notice to the following financialinstitutions
a) IDBI
b) MSFC
c) IFCI
d) SICOM
e) None of these
Ans: ( c )
96. At what frequency can Banks pay interest on Saving Bank Account asper RBI guidelines
a) Monthly
b) Quarterly
c) Half Yearly
d) Yearly
Ans: ( c )
 97. The VSAT communication network for banks and financial institutionslaunched by RBI is known as
a) SWIFT
b) SBI NET
c) BANK NET
d) INFINET
Ans: (d)
 
98. The ceiling for Bank’s daily borrowings in Call Money should notexceed---% of owned funds
a)100%
b)50%
c)75%
d)150%
Ans: (a)
99. Most modern banking systems are based on:
A) money of intrinsic value.
B) commodity money.
C) 100 percent reserves.
D) fractional reserves.
Ans: (d)
100. Which bank has become the first foreign bank to open a branch inIsrael's diamond exchange:
a) American Express Bank
b) Citibank
c) Standard Chartered Bank
d) State Bank of India
Ans: (d)

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