• Gilt edged securities refers to :
Ans. Govt. Securities.
• Increasing CRR by RBI leads to :
Ans. Squeeze in liquidity.
• Market Captialisation means-
Ans. Number of shares issued by a company multiplied by current market price of the share.
• Unqualified Report means :
Ans. an Audit Report contains no "Clauses".
• "Dividend Stripping" means__
Ans. Purchase or Sale of shares by the individuals or company prior or subsequent to declaration of dividends.
• Higher Foreign Exchange Reserves are associated with the risk of :
Ans. Fluctuation in exchange rates.
• Collateralised Borrowing and Lending Obligation (CBLO) is a:
Ans. Money Market Instrument. .
• Overhead expenses for Banking Sector compared to Manufacturing Sector is :
Ans. Low.
• Islamic Banking means :
Ans. banking according to the Principles of Shariat
• G8 Countries consist mainly of:
Ans. Developed nations.
• Which State took the initiatives for consolidation of Co-operative banks :
Ans. Maharashtra
• Expand VAT :
Ans. Value Added Tax
• Minimum period for which a Commercial Paper can be issued is :
Ans. 7 days
• Monetary Museum of India established by RBI is located at :
Ans. Mumbai
• Yes Bank has been promoted by :
Ans. Mr. Rana Kapoor
• The country which has banned sale of Tobacco is :
Ans. Bhutan
• Expand SACP :
Ans. Special Agriculture Credit Plan .
• Dr. Montek Singh Ahluwalia at present is :
Ans. Deputy Chairman of the Planning Commission
• Expand OSU :
Ans. Off Shore Unit
• Maximum Forex permissible to a Resident Indian going abroad as tourist :
Ans. US $ 10,000 per financial year.
• Banks are required to preserve records as per provisions of :
Ans. Sec 45Y, Banking Regulations Act
• KYC norms were implemented to :
Ans. Prevent Money Laundering.
• A unique example of Co-op bank converting to a private commercial bank :
Ans. Development Credit Bank
• Licence for starting a new Commercial bank is given by :
Ans. RBI
• RBI rediscounts bills of the banks at :
Ans. Bank Rate
• Which charge does not require registration in case of limited companies :
Ans. Pledge
• Irrevocable LC denotes that :
Ans. Terms and condition of LC cannot be changed without
consent of beneficiary.
• Worla Elders days IS on :
Ans. 1st October.
• Chairperson of Committee on Corporate Governance in Banks :
Ans. A.S. Ganguly
• Committee associated with funding of Tea industry :
Ans. Madhukar Committee.
Which committee is associated with Rural Credit System :
Ans. V S Vyas Committee
• Montreal Protocol relates to :
Ans. Protection of Ozone Layer
• Import Licence are issued for :
Ans. CIF value
• The cases referred to Lok Adalats formed by DRT is for :
Ans. above Rs. 20 lac.
• NK Singh Committee is associated :
Ans. Foreign direct investment (FDI)
• NIXI :
Ans. Telecom Regulatory Authority of India (TRAI) has recommended the
establishment of Internet exchanges :
Ans. Nationallntemet Exchange of India
• According Multi Commodity Exchange, _ is the largest Potential Market in the Futures Trading of Carbon Credits in India :
Ans. Gujarat
• __ has become the First Public Sector Bank to raise Equity Capital through Qualified Institutional Placement (QIP) :
Ans. Bank of India
• According to the Global Information Technology Report 2007-08, __ is the Most Networked Economy in the World :
Ans. Denmark
• Supreme Court upheld the Law enacted by the Union Government providing _ quota for other backward classes in Central educational institution such as IIT/ IIM from Academic year 2008-09 :
Ans. 27%.
• Postal Index Number (PIN) will be changed from :
Ans. 6 to 8 digits, to ensure speedier delivery of post.
• ____ is ranked as the World's Most Powerful Brand for the second straight year :
Ans. Google
• The US has placed India and 8 other countries on its 'Priority Watch List' for this year for falling to protect __ :
Ans. The Copyrights, Patents and Trade Marks of American Producers from Piracy .
• In a bid to enhance the insurance cover for exporters, the Govt. has decided to pump in Rs. 100 Crore in _ by way of increasing its Equity :
Ans. ECGC.
• Per Capita Income of Indian is estimated at _ at current prices for 2007-08 as against Rs 16,668 In 2000-01 :
Ans. Rs. 33,299.
• _ has the Largest Petroleum Reserves (almost 1I4th of the World's proven total petroleum reserves) in the World :
Ans. Saudi Arabia.
• China is getting the better of India in Carbon Credits Trading. While the biggest projects in China produces an estimated 11 million Certified Emission Reduction a year, Biggest Prolect in India produces only _ :
Ans. 4 million a year.
• Loss making banks can make donations totaling Rs _ lakhs only in a financial year :
Ans. Rs.5lac
• Is Wheat a commercial crop :
Ans. No
• Largest trading partner country of India :
Ans. USA
• Maximum cotton yielding country :
Ans. India
• Maximum coffee yield :
Ans. Brazil
• Raksha Kawach :
Ans. Railway Security
• Dronacharya award relates to :
Ans. Award to Sports Coach
• Which among the currencies is the costliest in term of Indian Rupee :
Ans. Pound Sterling
• The revised definition of sick SSI unit has been given by :
Ans. Kohli Committee
• Which unit of valuation is known as 'Paper Gold' :
Ans. SDR.
• Emission standard given by :
Ans. Mashelkar Panel.
• Currency of Greece :
Ans. Euro
• Dialysis is related to :
Ans. Kidney patients
• Cholesterol is related to :
Ans. Heart problems.
• 10th Dec. is observed as :
Ans. Human Rights Day.
• Which RBI Committee is studying Lenders liability :
Ans. Dr. N. L. Mitra.
• Which of the following is the computer language :
Ans. COBOL.
• Which gas is emitted by motor vehicle :
Ans. Carbon mono oxide.
• Name of Special animal protection group :
Ans. PETA (People for Ethical Treatment of Animals).
• Handloom' is considered as second largest economic activity after :
Ans. Agriculture in India.
• Documents under LC should be dealt with by the negotiating I issuing bank within a time period of not exceeding _ banking days excluding the date of receipt of documents :
Ans. 5 banking days
• If the due date of CDs falls on a holiday it should be paid on :
Ans. preceding working day.
• ____ refers to purchase of book debts I receivables without recourse to the sellers :
Ans. Factoring
• Maximum housing loans which would be treated as priority sector advance is :
Ans. Rs. 20 lacs.
• Green back currency refers to :
Ans. US$.
• Public holidays are excluded for determining time for presentation or acceptance for payment under :
Ans. Section 105 of Negotiable Instruments Act 1881.
• Sec. 45Z of Banking Regulation Act 1949 deals with :
Ans. Return of paid instruments to account holders.
• Can Bank exercise right of Set-off in respect of contingent liabilities :
Ans. No
• US $ rate is increased from Rs. 401- to Rs. 43/- It will benefit the :
Ans. Exporters and will lead to increase in exports.
• Bearer demand draft cannot be issued as per under Section __ RBI Act :
Ans. Sec 31 of RBI Act
• If a Sole Trustee dies, the Trust will be managed by :
Ans. Court appointed Trustee
• Section 22 of the NI Act provides for a grace period 3 days to be added for arriving at the due date for a :
Ans. Usance bill.
• Equitable Mortgage was created by deposit of title deeds on 1.6.2008. Subsequently Registered Mortgage was executed on 2.6.2008 on same property. Which Mortgage will have priority :
Ans. Equitable Mortgage
• Mulberry loan is related to :
Ans. Sericulture.
• Pre-paid expenses in the shape of insurance premium are classified in the Balance Sheet as :
Ans. Current asset
• The Borrowing of the Board of Directors of the Public Ltd Company should not exceed :
Ans. Paid•up capital and free reserves.
• Working Capital assessment for SSI units sanctioned Working Capital limit upto Rs 5 crore is as per :
Ans. Nayak committee.
• State-sponsored Corporation granted loan for on-lending to Weaker Section is covered by the bank under :
Ans. Indirect advance to agriculture.
• Hypothecation has been defined in :
Ans. Section 2 (n) of SARFAESI Act.
• In a cheque drawn by the drawer, the name of payee is written in English and the other parts, in vernacular language :
Ans. The cheque will be paid if otherwise in order.
• Guarantor stepping into the shoes of creditor on discharging the liability of the principal borrower :
Ans. Right of Subrogation.
• In Sec 148 of Indian Contract Act, Bailment refers to :
Ans. Delivery of goods from one person to another person for some purpose and when the purpose will be over, goods will be returned or disposed-off as per the direction of the deliverer, i.e. bailor.
• Know Your Customer (KYC) guidelines :
Ans. Prevent banks from being used unwittingly used by criminal elements for transfer of illegal funds/ money laundering activities.
• Preferential payment to depositors in respect of winding up of a Banking Company is provided :
Ans. under section 43 A of Banking Regulation Act 1949.
• If Operating Cycle is longer :
Ans. This implies that higher amount of working capital will be required.
• Clayton's Rule applies to :
Ans. appropriation of payments.
• Vostro account means :
Ans. Foreign Bank's A/c with us.
• RFC ale can be opened by :
Ans. home returned NRls.
• Guarantees covering series of transactions :
Ans. Continuing Guarantees.
• Buyer takes possesSion of goods and enjoys as Sole Owner of goods although price of goods not fully paid :
Ans. Hire Purchase.
• As per Sec. 26 NI Act, Minor may draw, endorse, deliver, Negotiable Instrument so as to bind all parties except himself :
Ans. True.
• Mr. A, a current A/c holder executed a power of attorney in favour of Mr. B to operate Current Deposit A/c. Mr. A's death notice is served on the Banker. A cheque duly signed by Mr. B. is received for payment the Bank has to :
Ans. Dishonour the Cheque.
• Contract of Insurance is an :
Ans. indemnity contract.
• Bailment is in :
Ans. Indian Contract Act Sec. 148.
• Cheque may be crossed by drawer, holder, banker :
Ans. All (Sec. 125)
• Mortgage by Deposit of title of deeds is :
Ans. Equitable Mortgage• (Transfer of Property Act, Sec. 58F).
• Mortgage is defined :
Ans. Transfer of Property Act Sec. 58(F)
• Minor can be appointed as an Agent :
Ans. Principal is responsibIe (Sec. 184 of Contract Act).
• A/c Payee crossing is not recognised by an act :
Ans. Outcome of custom and usuage.
• Cheque validfiy period has now statutory sanction as per :
Ans. Sec; 138 of NI Act
• Writing name of bank on face of Cheque with or without two parallel lines
Ans. Special Crossing. .
• A/C payee crossing is direction to :
Ans. Collecting banker.
• Garnishee Order applies to :
Ans. Credit Balance in CC
• Unclaimed Deposit• 10 years and above :
Ans. RBI (Sec. 26 of Banking Regulation Act)
• Material alteration :
Ans. Requires drawers authentication.
• Possession & ownership with borrower :
Ans. Hypothecation
• Safe Custody is covered under which act :
Ans. Indian Contract Act
• Safe Deposit Locker relationship with banker is :
Ans. Lessor• Lessee.
• Debt Equity Ratio :
Ans. Type of Solvency Ratio
• Break even paint means :
Ans. No profit no loss.
• Target of agriculture finance :
Ans. 18% of ANBC or Credit balance of off Balance sheet items, whichever is higher.
• Current ratio = Current Assets + Current Liabilities.
• Under RTI Act, the person seeking information should have qualifying eligibility of :
Ans. Indian Citizenship .
• Minimum and maximum maturity period of a Commercial Paper :
Ans. 7 days and 1 year.
• New name of the Ministry of NRI Affairs :
Ans. Ministry of Overseas Indian Affairs.
• Most popular bench mark rate for Indian money market for one day call rates is :
Ans. MIBOR
• What is the Cash Reserve Ratio that the Overseas Banking units have to maintain while opening the branch in SEZs :
Ans. No requirement
• The country that revalued its currency Yuan against the US dollar is :
Ans. China
• What is the maximum amount for which the CGTMSE guarantee cover• is available :
Ans. Fund & Non Fund based Rs. 1 cr.
• Who has formulated the 'Swaran Jayanti Gram Swarozgar Yojana :
Ans. Ministry of Rural Development
• Which bank has started 'Abhay' credit counselling centres in association with NGO :
Ans. Bank of India.
• Concept of Priority Sector came in the year __ :
Ans. 1972
• What is the minimum and maximum number of persons that can form JLG for tenant farmers :
Ans. 4 to 10 .
• What is the name of in-built device in a computer where data is stored :
Ans. Hard Disc
• What is the target of correspondence in Hindi from Region C to Region C :
Ans. 55% of total letter sent
• What is Corporate Governance :
Ans. Management of an organisation to enhance value for all stakeholders .
• Commission of Govt. business other than Pension :
Ans. 9 paisa per Rs. 100 turnover.
• Expand HTML :
Ans. HyperText Marttup Language
• Number of alphabets in a PAN Card :
Ans. Total 10, out of which 6 alphabets and 4 Numerals.
• Oldest and largest foreign bank in India :
Ans. Standard Chartered Bank
• What is Internet :
Ans. Network for Networks
• Information Technology Act came in to effect from :
Ans. 1.6.2000
• 'Buy now Pay later' is related to :
Ans. Credit Card
• Maximum dividend payout ratio for a bank is :
Ans. 40%
• What enables computers to interact with other network through telephone lines :
Ans. Modem
• Extent of Investment fluctuation reserve for banks Minimum 5% of securities classified as held for :
Ans. Trading and Available for Sale.
• Smallest part of computer memory is :
Ans. Bit .
• A branch is considered as rural branch if it is located as a place with population below :
Ans. 10,000. (RBI definition), however for PMEGP it is 20000
• Converting physical shares to electronic from is called :
Ans. Dematerialization
• Official Language Committee Meeting :
Ans. Once in a quarter
• Minimum age of minor for self operated account :
Ans. 10 years
• Vyas committee recommendations relates to :
Ans. Agriculture credit
• Committee which recommended about Universal Banking :
Ans. R.H. Khan
• Nathu La Pass opened up for trade between China & India is in which State -,- :
Ans. Sikklm
• The Uniform Custom & Practices for Documentary Credits (UCP 600) has _ as the total number of Articles :
Ans. 39
• Agency commission rat~ for governments business receipts is at the rate of_ per transaction :
Ans. Rs. 45
• Which sector has become the world's biggest source of employment :
Ans. Services
• 'Which States has become the first State in India to launch evening Courts :
Ans. Gujarat
• The country which is known as 'Land of Co-operative' is :
Ans. Denmark
• The time period of settlement in case of RTGS is : Ans. "Two Hour
• Which state has got the maximum agricultural credit from the nationalized banks :
Ans. Andhra Pradesh
• As per the latest WTO report, the biggest importer country in the world during 2005 is :
Ans. USA
• Foreign Banks in India and Indian banks having presence outside India are to comply with Basel II norms w.e.f. :
Ans. 31st March, 2008
• In the total food grain output of India, what is the share of Kharif Crops :
Ans. 50%
• The Grameen Bank Model of micro-finance institution was developed originally by :
Ans. Bangladesh
• Interest on Cash Reserve Ratio eligible balance is paid by RBI on __ basis :
Ans. No interest is paid
• Banks are required to maintain minimum of __ of theirCRR requirement on a daily basis :
Ans. 70%
• Stamp duty payable on a Promissory Note is governed by :
Ans. Indian Stamps Act
• Banks can raise up to __ of the total Tier-I capital in the form of perpetual dell :
Ans. 15%
• The rate of commission paid by government for pension payment is :
Ans. . Rs. 60 per transaction
• 'Customer' has been defined in :
Ans. KYC Guidelines
• What is the cut-off point for reforming fraud cases to CBI :
Ans. Rs. 1 crore
• RTGS will minimize __ risk :
Ans. Settlement risk
• What are the Indian Depository Receipts :
Ans. Financial Instruments that allow foreign companies to mobilize funds from Indian markets
• Which act gives legal guarantee of 100 days employment in rural areas to 1 person in every household :
Ans. National Rural Employment Guarantee Act
• Service tax has to be remitted to the Govt. A/c by :
Ans. 5th of the succeeding month
• The risk of loss resulting from inadequate or failed intemal processes, people and systems or from external events is :
Ans. Operational risk
• Which committee had recommended formation of Banking Standards and Codes Board to prescribe guidelines in the banking sector for improving customer service :
Ans. S.S. Tarapore Committee
• Which state stands first in promoting SHG movement :
Ans. Andhra Pradesh
• ICRA, the rating company has become an associate of :
Ans. Moody's Investor Service
• Under what provisions Lok Adalats are set up :
Ans. Legal Services Authority Act, 1987
• What is MCA-21 :
Ans. It is the e-governance project of Ministry of Corporate affairs
• The new name of UTI Bank is :
Ans. Axis Bank
• BPO & KPO stand for :
Ans. Business Process Outsourcing & Knowledge Process Outsourcing
• International Bank for Devl. & Reconstruction is also known as :
Ans. World Bank
• WWW refers to :
Ans. World Wide Web
• The book 'A View from the Outside- Why good Economics works for every one' is written by :
Ans. P.Chidambaram
• Ministry of Labour has banned children less than 14 yrs from working as domestic help :
Ans. With effect from 10th October 2006.
• . ICRA,CRISIL,CARE,FITCH India are names of :
Ans. RBI approved rating agencies In India
• A Common Goods & Services tax is expected to be implemented from :
Ans. April 2010
• 'Pure Banking, Nothing Else' is the signing off statement of _ :
Ans. State Bank of India
• Finnacle, the popular Banking software is a product of :
Ans. INFOSYS
• 'Metropolitan' group includes all banked centres with population of and above :
Ans. 10,00,000
• RBI has allowed NBFCs registered with RBI to issue co-branded credit cards with banks, without risk sharing, with prior RBI approval, for an initial period of :
Ans. Two Years
• Under population group of banked centres, 'Semi urban' group includes all banked centres with population of 10,000 and above but less than :
Ans. 1,00,000
• 'Urban' group is that which has a population above 1,00,000 but below :
Ans. 10,00,000
• Which sector has become the world's biggest source of employment :
Ans. Services
• Which is the largest country in the world in terms of land area :
Ans. Russia
• Which State has become the first State in India to launch evening courts :
Ans. Gujarat
• The country which is known as 'Land of Co-operative' is :
Ans. Denmark
• Right to Education to all children between the age of 6to 14 years is :
Ans. A fundamental right
• The time period of settlement in case of RTGS is :
Ans. Two Hour
• Which state has got the maximum agricultural credit from the nationalized banks :
Ans. Andhra Pradesh
• Which state is at the top in agricultural production in India :
Ans. Punjab
• In the total food grain output of India, what is the share of Kharif Crops :
Ans. 50%
• Who is the chairperson of the National Commission on Farmers Dr. M.S.Swaminathan
• What is India's share in world's total exports of milk dairy products :
Ans. 0.5%
• A bank's aggregate Capital market exposure shall not exceed __ % of the net worth of the bank on a solo and consolidated basis :
Ans. 40%
• Service tax recovered by the Bank in a month has to be remitted to the Govt. A/c by :
Ans. 5th of the succeeding month
• Two currencies which have been include by RBI in the basket of currencies to which rupee is linked :
Ans. Yuan & Hong Kong dollar
• What is the maximum limit permitted for investment by FDls in the equity capital of ARCs :
Ans. 49%
• ICRA, the rating company has become an associate of :
Ans. Moody's Investor Service
• No passport need be presented to money changers for encashment of dollars up to :
Ans. USD500
• Who is the industry leader in mortgage loan :
Ans. HDFC
• What is the ceiling for issue of Innovative perpetual debt instrument by banks :
Ans. It should not exceed 15% of total Tier•1 capital of the bank
• Who is the Chairman of the Committee to recommend the frame work for fuller Capital Account Convertibility :
Ans. S.S. Tarapore, former Deputy Governor,
• RBI Interest subsidy on farm credit has to be claimed by banks :
Ans. on quarterly basis
• Risk weight for investment in RIDF by banks to meet shortfall in agricultural sector is :
Ans. 100% .
• Which are the three pillars under Basel II norms :
Ans. (a) Regulatory requirement of capital, b) Supervisory review, c) Market discipline
• Banks have kept Investment Fluctuation Reserves to manage :
Ans. Interest rate risk
• Indian bank that has been named in the top 500 list of Fortune Global 500 companies :
Ans. State Bank of India
• Opening of branches by Banks is covered under _ of the Banking Regulation Act,1949 :
Ans. Section 23
• Banks have to file with Income Tax Department returns on a __ basis in respect of Interest paid to resident depositors not exceeding Rs. 10,000:
Ans. Quarterly
• RBI's permission to open a bank branch is valid for _ from the date of the consolidated authorization letter issued by it :
Ans. one year
• Which of the following is related to 'Yellow Revolution' :
Ans. Oilseeds Production
• Annual growth rate of national income was recorded lowest during :
Ans. Third Plan
• According to the Sarva Shiksha Abhiyan, India's every child would be able to go to school by :
Ans. 2015
• Banks prefer going. to Lok Adalat because :
Ans. No court fees,' no appeal and compromise decree.
• NICL is abbreviation of :
Ans. National Insurance Company Ltd.
• Who decides the quantum of agricultural finance :
Ans. District Technical Committee.
• The term Insider Trading refers to :
Ans. Sale and Purchase of shares based on classified information available to those connected with company.
• What is meant by Pari-Passu charge :
Ans. Pro-rata in the ratio of outstanding within the consortium approved limits.
• Which financial institutions converted into a Bank on 01.10.04 :
Ans. lDBI Ltd.
• Fire wall is used for :
Ans. Hardware/software to protect the IT system/website from unauthorized access.
• The foreign bank which has its own currency chest in India :
Ans. Standard Chartered
• What is Internet :
Ans. Network of Networks
• Expand INFINET :
Ans. Indian financial Network
• Deferred payment guarantee is a :
Ans. financial guarantee
• Net Block means :
Ans. Fixed Assets minus depreciation
• The declared objective of the 11 th Plan is :
Ans. Faster and More InclusiveGrowth
• Committee on Financial Inclusion for RRBs __ :
Ans. Dr. C Rangarajan.
• SARFAESI Act has been extended to loans advanced by :
Ans. RRBs.
• RRBs to accept :
Ans. NRE / FCNR deposits.
• National Housing Bank (NHB) to launch _ for senior citizens :
Ans. Reverse mortgage
• ___ , to be the sole identification no. for all participants in the securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account :
Ans. PAN.
• Limit of per investor per year with respect to Capital Gains bonds issued by NHAI and REC under section 54EC to continue :
Ans. Rs.50 lakh
• Risk weight on loans up to Rs.1 lakh against gold and silver ornaments for all categories of banks reduced to :
Ans. 50%
• Risk weight on residential housing loans to individuals for loans up to Rs.30 lakh has been reduced to % :
Ans. 50%
• The requirement of 'no due' certificate to be dispensed with for small loans up •to Rs. __ to Small and Marginal Farmers, share-croppers and the like and instead, obtain self-declaration from the borrower :
Ans. 1,00,000.
• RRBs can now take up Corporate agency business for distribution of insurance products, including health and animal insurance on basis :
Ans. Without risk participation.
• Under SARFAESI. secured creditor, before taking possession of the charged assets, should give notice of _ days to the borrower or his authorized agent :
Ans. 60
• For getting finance under SJSRY scheme, the max. project cost for Individuals :
Ans. 50000
• A company is inviting application for fixed deposits from general public. The FDRs so made by it will be classified under :
Ans. Liabilities
• A bill becoming due for payment within __ shall be treated under current liability :
Ans. 12 months.
• Exposure norms for different industries/indivlduals/ groups fixed by the Banks/RBI are part of :
Ans. Risk Management
• . Pre-operative expenses are included in :
Ans. Intangible assets
• Pre-paid expenses-are classified as :
Ans. Current assets
• Assets = Liabilities are as per :
Ans. Dual aspect concept
• Normally, Foreign Traveler cheque 'buying rate is better than Foreign currency rates because of :
Ans. Holding cost
• A bill of USD one lac under Letter of Credit is due for payment after one month. There is appreciation is rupee. The importer will :
Ans. Gain
• Dividend distribution tax is being paid by :
Ans. Company
• CBS refers to :
Ans. Centralized Banking Solution
• RBI has now dispensed with restrictive provisions of service area approach except for :
Ans. Loans under Govt Sponsored Programmes
• In deceased deposit accounts, where nomination has been exercised, banks to inform nominee within. _ months in case of deposit accounts 'and Within months in case of locker accounts :
Ans. 6 : 3
• Debtors velocity ratio of a company is very low, it does indicates :
Ans. Debtors collection management of the company is good
• At what rate, RBI provides advance to Banks against the Govt securities :
Ans. Repo Rate
• Best explain the term "CBLO' :
Ans. It is type of money market instrument, which is used to borrow and lend funds against securities
• Bill for collection appears in the balance sheet on :
Ans. Liability side
• The purpose of Star Series Numbered Notes is the :
Ans. To be issued to general public
• Increases in CRR causes :
Ans. Decreases the lendable resources of the banks
• A borrower has been sanctioned working Capital limit of Rs. 3 lacs at margin of 25%. The amount of stock required to avail the sanctioned limit fully :
Ans. 4.00 lacs
• The difference between Term loan and Deferred payment guarantee is the :
Ans. Outlay of funds
• Main advantage of Cheque Truncation is the :
Ans. It decreases the cost of handling of large paper volume of small vote cheques
• The basic Principal of WC management is :
Ans. Profitability goes with liquidity
• A company sells off part of its assets and make a separate company i.e., unlock its value. After selling off its assets it continues business with the remaining assets. This is called :
Ans. Spin off
• Corporate Governance comprises of :
Ans. Board of directors, Company officials & shareholders
• The Ratio is most affected by decrease in current liabilities :
Ans. Current Ratio
• The %age of risk weight on cash balances with RBI is :
Ans. 0%.
• The %age of risk weight on Central Govt. Guaranteed advances is the :
Ans. 0%
• As per RBI Act, the floor limit is __ and ceiling limit of CRR is____ :
Ans. Nil and 20%.
• The minimum Floor limit and maximum ceiling limit for SLR is :
Ans. Nil and 40%
• CRR is tnaintained as a %age of __ and SLR maintained as a %age. of __ :
Ans. NDTL : DTL .
• Up to how much period, pre-shipment credit card extended without the prior approval of RBI :
Ans. 360 days
• In Red Clause Letter of credit importer has given which type of banking facility for the benefit of the exporter :
Ans. Finance for purchase of raw material
• In respect of letter of credit business, the term "deferred credit' is used for :
Ans. a type of supplier's credit .
• complainant is not satisfied with the reply given, within a period of_ from the date of cause of action arise :
Ans. One year
• TDS will be deducted if amount of rent exceeds Rs. __ p.a. to single payee :
Ans. 1.20 lacs
• Tax deducted for deposit accounts should be deposited within :
Ans. 7 days of the following month.
• A cheque has been issued by Director of the Company is received after the death of the director. Whether cheque will be paid :
Ans. Yes, since cheque has been issued in the representative capacity
• Note printing by RBI results in :
Ans. Inflation generally
• USD is depreciating as compared to world currencies because of :
Ans. Current account deficit
• Which bank has launched EMI Card :
Ans. ICICI Bank.
• Maturity proceeds of FCNR (B) deposits can be remitted :
Ans. To the depositors and to third parties outside India at the request of the depositors
• Which is a derivative instrument in the financial market :
Ans. Credit default swap
• Multicity cheque is payable at all ___ branches :
Ans. Core banking
• In the case of a white label credit card the brand of the issuer is :
Ans. Not mentioned
• Which one of the following is true in respect of issue of duplicate CDs :
Ans. It can be issued only in physical form
• Process of inviting subscriptions to a public issue is through a tendering process which is known as :
Ans. Book building
• Bank's direct investment in shares, convertible bonds, debentures, units of equity oriented mutual funds and all exposures to venture capital should not exceed___ % of its net worth :
Ans. 20
• __ ATM eliminates the need for PIN entry and authenticated customer transactions by thumb impressions :
Ans. Biometric
• Provisions made by a bank in excess of the regulatory provisions is known as__ provisions :
Ans. Floating
• Innovative perpetual debt instruments are issued only with __ options :
Ans. Call
• A company incorporated outside India can issue :
Ans. IDR
• Who has formed the Rural Credit Bureau :
Ans. ICICI, CIBIL, NABARD
• Which one of the following is not the strength of SHG :
Ans. Super profit orientation
• Which is the widely accepted in the Money Market Operations :
Ans. Treasury Bills
• Maximum limit under General Credit Card is Rs._ 100% of the oulstandings are treated as __ agricultural advance :
Ans. Rs. 25,000 ; Indirect
• Date of expiry is not mentioned in the LC. Documents are presented for negotiation. In this case :
Ans. Cannot be negotiated as the LC is not valid.
• As per recent RBI guidelines Branch level Customer Committee should also include
___ as member :
Ans. A customer who should be senior citizen.
• Working group on procedure and processing of Agricultural loans is headed by_ :
Ans. C.P. Swarankar
• As per RBI directives, the complaints relating to cash not dispensed at ATMs although deposit account is debited etc. should be disposed of within a period of ___ :
Ans. 3 days.
• Which state is at the top of a list of best e-governed 20 states :
Ans. Goa
• Surrender value in the context of Life insurance policy means :
Ans. Minimum value that is given by an insurance company in the case of foreclosure of the policy
• Star series notes means those notes which are placed in replacement of defective notes issued in the denomination of :
Ans. Rs10, Rs 20, Rs 50
• When RBI sells the securities to banks and gets cash from banks under LAF, RBI pays interest to banks at :
Ans. Reverse Repo Rate
• Decision given by the Ombudsman has to be implemented by the bank within :
Ans. 1 month from the date of receipt of acceptance from complainant
• In the context of collection of cheques, conversion means :
Ans. Crediting the amount of the cheque to the account of a person who is not entitled to it.
• As per Section 19(2) of the Banking Regulation Act, a banking company shall not hold shares in a company, either as pledge or as owner of an amount exceeding _ of the paid up capital of the company or _of its own paid up capital and reserves whichever is less.
Ans. 30%, 30%
•______ is part of the larger emission trading which is a method worked out to control pollution by using economic incentives :
Ans. Carbon Trading
• According to Transparency International (TI) corruption index, India has ranked :
Ans. 72
• has agreed to declare all its nuclear programmes and disable its main atomic reactor by the end of the year under US supervision :
Ans. N. Korea
• For bank the main advantage of referring the matter to Lok Adalats is :
Ans. It is based on mutual consent hence decision and its execution is fast.
• For which of the following Industries Cash budget system for assessment of MPBF has recently been adopted by the bank :
Ans. Service, Software, Sugar, Tea.
• Probate is a document issue by Court of law and is the' nature of :
Ans. An official confirmation of the will of the deceased.
• Currency & Finance is a report being published by :
Ans. RBI
• Twin sisters of Bretton Woods :
Ans. World Bank and IMF.
• Which,type of Letter of Credits, pre-shipment credit is offered :
Ans. Red-clause letter of credit
• Explain the term 'Islamic Banking' :
Ans. Banking without the factor like" Interest on money deposited or lent"
• In Ombudsman Scheme, Customer Service Committee Report is to be submitted on __ basis :
Ans. Quarterly
• The risk associated with higher foreign exchange reserves is :
Ans. Exchange rate movement risk
• What is the maximum discount that a company can offer to retail investors for their public issues? :
Ans. 10%
• Which country has chosen the face of its motherhood as the first woman to be featured in its banknotes? :
Ans. South Korea
• India ranks as _ in the list of largest carbon emitters :
Ans. Fourth
• Who is the head of internal working gap set up by RBI to examine the recommendations of the Radhakrishna Export on Agricultural indebtedness? :
Ans. Mr V.S. Das,
Ans. Govt. Securities.
• Increasing CRR by RBI leads to :
Ans. Squeeze in liquidity.
• Market Captialisation means-
Ans. Number of shares issued by a company multiplied by current market price of the share.
• Unqualified Report means :
Ans. an Audit Report contains no "Clauses".
• "Dividend Stripping" means__
Ans. Purchase or Sale of shares by the individuals or company prior or subsequent to declaration of dividends.
• Higher Foreign Exchange Reserves are associated with the risk of :
Ans. Fluctuation in exchange rates.
• Collateralised Borrowing and Lending Obligation (CBLO) is a:
Ans. Money Market Instrument. .
• Overhead expenses for Banking Sector compared to Manufacturing Sector is :
Ans. Low.
• Islamic Banking means :
Ans. banking according to the Principles of Shariat
• G8 Countries consist mainly of:
Ans. Developed nations.
• Which State took the initiatives for consolidation of Co-operative banks :
Ans. Maharashtra
• Expand VAT :
Ans. Value Added Tax
• Minimum period for which a Commercial Paper can be issued is :
Ans. 7 days
• Monetary Museum of India established by RBI is located at :
Ans. Mumbai
• Yes Bank has been promoted by :
Ans. Mr. Rana Kapoor
• The country which has banned sale of Tobacco is :
Ans. Bhutan
• Expand SACP :
Ans. Special Agriculture Credit Plan .
• Dr. Montek Singh Ahluwalia at present is :
Ans. Deputy Chairman of the Planning Commission
• Expand OSU :
Ans. Off Shore Unit
• Maximum Forex permissible to a Resident Indian going abroad as tourist :
Ans. US $ 10,000 per financial year.
• Banks are required to preserve records as per provisions of :
Ans. Sec 45Y, Banking Regulations Act
• KYC norms were implemented to :
Ans. Prevent Money Laundering.
• A unique example of Co-op bank converting to a private commercial bank :
Ans. Development Credit Bank
• Licence for starting a new Commercial bank is given by :
Ans. RBI
• RBI rediscounts bills of the banks at :
Ans. Bank Rate
• Which charge does not require registration in case of limited companies :
Ans. Pledge
• Irrevocable LC denotes that :
Ans. Terms and condition of LC cannot be changed without
consent of beneficiary.
• Worla Elders days IS on :
Ans. 1st October.
• Chairperson of Committee on Corporate Governance in Banks :
Ans. A.S. Ganguly
• Committee associated with funding of Tea industry :
Ans. Madhukar Committee.
Which committee is associated with Rural Credit System :
Ans. V S Vyas Committee
• Montreal Protocol relates to :
Ans. Protection of Ozone Layer
• Import Licence are issued for :
Ans. CIF value
• The cases referred to Lok Adalats formed by DRT is for :
Ans. above Rs. 20 lac.
• NK Singh Committee is associated :
Ans. Foreign direct investment (FDI)
• NIXI :
Ans. Telecom Regulatory Authority of India (TRAI) has recommended the
establishment of Internet exchanges :
Ans. Nationallntemet Exchange of India
• According Multi Commodity Exchange, _ is the largest Potential Market in the Futures Trading of Carbon Credits in India :
Ans. Gujarat
• __ has become the First Public Sector Bank to raise Equity Capital through Qualified Institutional Placement (QIP) :
Ans. Bank of India
• According to the Global Information Technology Report 2007-08, __ is the Most Networked Economy in the World :
Ans. Denmark
• Supreme Court upheld the Law enacted by the Union Government providing _ quota for other backward classes in Central educational institution such as IIT/ IIM from Academic year 2008-09 :
Ans. 27%.
• Postal Index Number (PIN) will be changed from :
Ans. 6 to 8 digits, to ensure speedier delivery of post.
• ____ is ranked as the World's Most Powerful Brand for the second straight year :
Ans. Google
• The US has placed India and 8 other countries on its 'Priority Watch List' for this year for falling to protect __ :
Ans. The Copyrights, Patents and Trade Marks of American Producers from Piracy .
• In a bid to enhance the insurance cover for exporters, the Govt. has decided to pump in Rs. 100 Crore in _ by way of increasing its Equity :
Ans. ECGC.
• Per Capita Income of Indian is estimated at _ at current prices for 2007-08 as against Rs 16,668 In 2000-01 :
Ans. Rs. 33,299.
• _ has the Largest Petroleum Reserves (almost 1I4th of the World's proven total petroleum reserves) in the World :
Ans. Saudi Arabia.
• China is getting the better of India in Carbon Credits Trading. While the biggest projects in China produces an estimated 11 million Certified Emission Reduction a year, Biggest Prolect in India produces only _ :
Ans. 4 million a year.
• Loss making banks can make donations totaling Rs _ lakhs only in a financial year :
Ans. Rs.5lac
• Is Wheat a commercial crop :
Ans. No
• Largest trading partner country of India :
Ans. USA
• Maximum cotton yielding country :
Ans. India
• Maximum coffee yield :
Ans. Brazil
• Raksha Kawach :
Ans. Railway Security
• Dronacharya award relates to :
Ans. Award to Sports Coach
• Which among the currencies is the costliest in term of Indian Rupee :
Ans. Pound Sterling
• The revised definition of sick SSI unit has been given by :
Ans. Kohli Committee
• Which unit of valuation is known as 'Paper Gold' :
Ans. SDR.
• Emission standard given by :
Ans. Mashelkar Panel.
• Currency of Greece :
Ans. Euro
• Dialysis is related to :
Ans. Kidney patients
• Cholesterol is related to :
Ans. Heart problems.
• 10th Dec. is observed as :
Ans. Human Rights Day.
• Which RBI Committee is studying Lenders liability :
Ans. Dr. N. L. Mitra.
• Which of the following is the computer language :
Ans. COBOL.
• Which gas is emitted by motor vehicle :
Ans. Carbon mono oxide.
• Name of Special animal protection group :
Ans. PETA (People for Ethical Treatment of Animals).
• Handloom' is considered as second largest economic activity after :
Ans. Agriculture in India.
• Documents under LC should be dealt with by the negotiating I issuing bank within a time period of not exceeding _ banking days excluding the date of receipt of documents :
Ans. 5 banking days
• If the due date of CDs falls on a holiday it should be paid on :
Ans. preceding working day.
• ____ refers to purchase of book debts I receivables without recourse to the sellers :
Ans. Factoring
• Maximum housing loans which would be treated as priority sector advance is :
Ans. Rs. 20 lacs.
• Green back currency refers to :
Ans. US$.
• Public holidays are excluded for determining time for presentation or acceptance for payment under :
Ans. Section 105 of Negotiable Instruments Act 1881.
• Sec. 45Z of Banking Regulation Act 1949 deals with :
Ans. Return of paid instruments to account holders.
• Can Bank exercise right of Set-off in respect of contingent liabilities :
Ans. No
• US $ rate is increased from Rs. 401- to Rs. 43/- It will benefit the :
Ans. Exporters and will lead to increase in exports.
• Bearer demand draft cannot be issued as per under Section __ RBI Act :
Ans. Sec 31 of RBI Act
• If a Sole Trustee dies, the Trust will be managed by :
Ans. Court appointed Trustee
• Section 22 of the NI Act provides for a grace period 3 days to be added for arriving at the due date for a :
Ans. Usance bill.
• Equitable Mortgage was created by deposit of title deeds on 1.6.2008. Subsequently Registered Mortgage was executed on 2.6.2008 on same property. Which Mortgage will have priority :
Ans. Equitable Mortgage
• Mulberry loan is related to :
Ans. Sericulture.
• Pre-paid expenses in the shape of insurance premium are classified in the Balance Sheet as :
Ans. Current asset
• The Borrowing of the Board of Directors of the Public Ltd Company should not exceed :
Ans. Paid•up capital and free reserves.
• Working Capital assessment for SSI units sanctioned Working Capital limit upto Rs 5 crore is as per :
Ans. Nayak committee.
• State-sponsored Corporation granted loan for on-lending to Weaker Section is covered by the bank under :
Ans. Indirect advance to agriculture.
• Hypothecation has been defined in :
Ans. Section 2 (n) of SARFAESI Act.
• In a cheque drawn by the drawer, the name of payee is written in English and the other parts, in vernacular language :
Ans. The cheque will be paid if otherwise in order.
• Guarantor stepping into the shoes of creditor on discharging the liability of the principal borrower :
Ans. Right of Subrogation.
• In Sec 148 of Indian Contract Act, Bailment refers to :
Ans. Delivery of goods from one person to another person for some purpose and when the purpose will be over, goods will be returned or disposed-off as per the direction of the deliverer, i.e. bailor.
• Know Your Customer (KYC) guidelines :
Ans. Prevent banks from being used unwittingly used by criminal elements for transfer of illegal funds/ money laundering activities.
• Preferential payment to depositors in respect of winding up of a Banking Company is provided :
Ans. under section 43 A of Banking Regulation Act 1949.
• If Operating Cycle is longer :
Ans. This implies that higher amount of working capital will be required.
• Clayton's Rule applies to :
Ans. appropriation of payments.
• Vostro account means :
Ans. Foreign Bank's A/c with us.
• RFC ale can be opened by :
Ans. home returned NRls.
• Guarantees covering series of transactions :
Ans. Continuing Guarantees.
• Buyer takes possesSion of goods and enjoys as Sole Owner of goods although price of goods not fully paid :
Ans. Hire Purchase.
• As per Sec. 26 NI Act, Minor may draw, endorse, deliver, Negotiable Instrument so as to bind all parties except himself :
Ans. True.
• Mr. A, a current A/c holder executed a power of attorney in favour of Mr. B to operate Current Deposit A/c. Mr. A's death notice is served on the Banker. A cheque duly signed by Mr. B. is received for payment the Bank has to :
Ans. Dishonour the Cheque.
• Contract of Insurance is an :
Ans. indemnity contract.
• Bailment is in :
Ans. Indian Contract Act Sec. 148.
• Cheque may be crossed by drawer, holder, banker :
Ans. All (Sec. 125)
• Mortgage by Deposit of title of deeds is :
Ans. Equitable Mortgage• (Transfer of Property Act, Sec. 58F).
• Mortgage is defined :
Ans. Transfer of Property Act Sec. 58(F)
• Minor can be appointed as an Agent :
Ans. Principal is responsibIe (Sec. 184 of Contract Act).
• A/c Payee crossing is not recognised by an act :
Ans. Outcome of custom and usuage.
• Cheque validfiy period has now statutory sanction as per :
Ans. Sec; 138 of NI Act
• Writing name of bank on face of Cheque with or without two parallel lines
Ans. Special Crossing. .
• A/C payee crossing is direction to :
Ans. Collecting banker.
• Garnishee Order applies to :
Ans. Credit Balance in CC
• Unclaimed Deposit• 10 years and above :
Ans. RBI (Sec. 26 of Banking Regulation Act)
• Material alteration :
Ans. Requires drawers authentication.
• Possession & ownership with borrower :
Ans. Hypothecation
• Safe Custody is covered under which act :
Ans. Indian Contract Act
• Safe Deposit Locker relationship with banker is :
Ans. Lessor• Lessee.
• Debt Equity Ratio :
Ans. Type of Solvency Ratio
• Break even paint means :
Ans. No profit no loss.
• Target of agriculture finance :
Ans. 18% of ANBC or Credit balance of off Balance sheet items, whichever is higher.
• Current ratio = Current Assets + Current Liabilities.
• Under RTI Act, the person seeking information should have qualifying eligibility of :
Ans. Indian Citizenship .
• Minimum and maximum maturity period of a Commercial Paper :
Ans. 7 days and 1 year.
• New name of the Ministry of NRI Affairs :
Ans. Ministry of Overseas Indian Affairs.
• Most popular bench mark rate for Indian money market for one day call rates is :
Ans. MIBOR
• What is the Cash Reserve Ratio that the Overseas Banking units have to maintain while opening the branch in SEZs :
Ans. No requirement
• The country that revalued its currency Yuan against the US dollar is :
Ans. China
• What is the maximum amount for which the CGTMSE guarantee cover• is available :
Ans. Fund & Non Fund based Rs. 1 cr.
• Who has formulated the 'Swaran Jayanti Gram Swarozgar Yojana :
Ans. Ministry of Rural Development
• Which bank has started 'Abhay' credit counselling centres in association with NGO :
Ans. Bank of India.
• Concept of Priority Sector came in the year __ :
Ans. 1972
• What is the minimum and maximum number of persons that can form JLG for tenant farmers :
Ans. 4 to 10 .
• What is the name of in-built device in a computer where data is stored :
Ans. Hard Disc
• What is the target of correspondence in Hindi from Region C to Region C :
Ans. 55% of total letter sent
• What is Corporate Governance :
Ans. Management of an organisation to enhance value for all stakeholders .
• Commission of Govt. business other than Pension :
Ans. 9 paisa per Rs. 100 turnover.
• Expand HTML :
Ans. HyperText Marttup Language
• Number of alphabets in a PAN Card :
Ans. Total 10, out of which 6 alphabets and 4 Numerals.
• Oldest and largest foreign bank in India :
Ans. Standard Chartered Bank
• What is Internet :
Ans. Network for Networks
• Information Technology Act came in to effect from :
Ans. 1.6.2000
• 'Buy now Pay later' is related to :
Ans. Credit Card
• Maximum dividend payout ratio for a bank is :
Ans. 40%
• What enables computers to interact with other network through telephone lines :
Ans. Modem
• Extent of Investment fluctuation reserve for banks Minimum 5% of securities classified as held for :
Ans. Trading and Available for Sale.
• Smallest part of computer memory is :
Ans. Bit .
• A branch is considered as rural branch if it is located as a place with population below :
Ans. 10,000. (RBI definition), however for PMEGP it is 20000
• Converting physical shares to electronic from is called :
Ans. Dematerialization
• Official Language Committee Meeting :
Ans. Once in a quarter
• Minimum age of minor for self operated account :
Ans. 10 years
• Vyas committee recommendations relates to :
Ans. Agriculture credit
• Committee which recommended about Universal Banking :
Ans. R.H. Khan
• Nathu La Pass opened up for trade between China & India is in which State -,- :
Ans. Sikklm
• The Uniform Custom & Practices for Documentary Credits (UCP 600) has _ as the total number of Articles :
Ans. 39
• Agency commission rat~ for governments business receipts is at the rate of_ per transaction :
Ans. Rs. 45
• Which sector has become the world's biggest source of employment :
Ans. Services
• 'Which States has become the first State in India to launch evening Courts :
Ans. Gujarat
• The country which is known as 'Land of Co-operative' is :
Ans. Denmark
• The time period of settlement in case of RTGS is : Ans. "Two Hour
• Which state has got the maximum agricultural credit from the nationalized banks :
Ans. Andhra Pradesh
• As per the latest WTO report, the biggest importer country in the world during 2005 is :
Ans. USA
• Foreign Banks in India and Indian banks having presence outside India are to comply with Basel II norms w.e.f. :
Ans. 31st March, 2008
• In the total food grain output of India, what is the share of Kharif Crops :
Ans. 50%
• The Grameen Bank Model of micro-finance institution was developed originally by :
Ans. Bangladesh
• Interest on Cash Reserve Ratio eligible balance is paid by RBI on __ basis :
Ans. No interest is paid
• Banks are required to maintain minimum of __ of theirCRR requirement on a daily basis :
Ans. 70%
• Stamp duty payable on a Promissory Note is governed by :
Ans. Indian Stamps Act
• Banks can raise up to __ of the total Tier-I capital in the form of perpetual dell :
Ans. 15%
• The rate of commission paid by government for pension payment is :
Ans. . Rs. 60 per transaction
• 'Customer' has been defined in :
Ans. KYC Guidelines
• What is the cut-off point for reforming fraud cases to CBI :
Ans. Rs. 1 crore
• RTGS will minimize __ risk :
Ans. Settlement risk
• What are the Indian Depository Receipts :
Ans. Financial Instruments that allow foreign companies to mobilize funds from Indian markets
• Which act gives legal guarantee of 100 days employment in rural areas to 1 person in every household :
Ans. National Rural Employment Guarantee Act
• Service tax has to be remitted to the Govt. A/c by :
Ans. 5th of the succeeding month
• The risk of loss resulting from inadequate or failed intemal processes, people and systems or from external events is :
Ans. Operational risk
• Which committee had recommended formation of Banking Standards and Codes Board to prescribe guidelines in the banking sector for improving customer service :
Ans. S.S. Tarapore Committee
• Which state stands first in promoting SHG movement :
Ans. Andhra Pradesh
• ICRA, the rating company has become an associate of :
Ans. Moody's Investor Service
• Under what provisions Lok Adalats are set up :
Ans. Legal Services Authority Act, 1987
• What is MCA-21 :
Ans. It is the e-governance project of Ministry of Corporate affairs
• The new name of UTI Bank is :
Ans. Axis Bank
• BPO & KPO stand for :
Ans. Business Process Outsourcing & Knowledge Process Outsourcing
• International Bank for Devl. & Reconstruction is also known as :
Ans. World Bank
• WWW refers to :
Ans. World Wide Web
• The book 'A View from the Outside- Why good Economics works for every one' is written by :
Ans. P.Chidambaram
• Ministry of Labour has banned children less than 14 yrs from working as domestic help :
Ans. With effect from 10th October 2006.
• . ICRA,CRISIL,CARE,FITCH India are names of :
Ans. RBI approved rating agencies In India
• A Common Goods & Services tax is expected to be implemented from :
Ans. April 2010
• 'Pure Banking, Nothing Else' is the signing off statement of _ :
Ans. State Bank of India
• Finnacle, the popular Banking software is a product of :
Ans. INFOSYS
• 'Metropolitan' group includes all banked centres with population of and above :
Ans. 10,00,000
• RBI has allowed NBFCs registered with RBI to issue co-branded credit cards with banks, without risk sharing, with prior RBI approval, for an initial period of :
Ans. Two Years
• Under population group of banked centres, 'Semi urban' group includes all banked centres with population of 10,000 and above but less than :
Ans. 1,00,000
• 'Urban' group is that which has a population above 1,00,000 but below :
Ans. 10,00,000
• Which sector has become the world's biggest source of employment :
Ans. Services
• Which is the largest country in the world in terms of land area :
Ans. Russia
• Which State has become the first State in India to launch evening courts :
Ans. Gujarat
• The country which is known as 'Land of Co-operative' is :
Ans. Denmark
• Right to Education to all children between the age of 6to 14 years is :
Ans. A fundamental right
• The time period of settlement in case of RTGS is :
Ans. Two Hour
• Which state has got the maximum agricultural credit from the nationalized banks :
Ans. Andhra Pradesh
• Which state is at the top in agricultural production in India :
Ans. Punjab
• In the total food grain output of India, what is the share of Kharif Crops :
Ans. 50%
• Who is the chairperson of the National Commission on Farmers Dr. M.S.Swaminathan
• What is India's share in world's total exports of milk dairy products :
Ans. 0.5%
• A bank's aggregate Capital market exposure shall not exceed __ % of the net worth of the bank on a solo and consolidated basis :
Ans. 40%
• Service tax recovered by the Bank in a month has to be remitted to the Govt. A/c by :
Ans. 5th of the succeeding month
• Two currencies which have been include by RBI in the basket of currencies to which rupee is linked :
Ans. Yuan & Hong Kong dollar
• What is the maximum limit permitted for investment by FDls in the equity capital of ARCs :
Ans. 49%
• ICRA, the rating company has become an associate of :
Ans. Moody's Investor Service
• No passport need be presented to money changers for encashment of dollars up to :
Ans. USD500
• Who is the industry leader in mortgage loan :
Ans. HDFC
• What is the ceiling for issue of Innovative perpetual debt instrument by banks :
Ans. It should not exceed 15% of total Tier•1 capital of the bank
• Who is the Chairman of the Committee to recommend the frame work for fuller Capital Account Convertibility :
Ans. S.S. Tarapore, former Deputy Governor,
• RBI Interest subsidy on farm credit has to be claimed by banks :
Ans. on quarterly basis
• Risk weight for investment in RIDF by banks to meet shortfall in agricultural sector is :
Ans. 100% .
• Which are the three pillars under Basel II norms :
Ans. (a) Regulatory requirement of capital, b) Supervisory review, c) Market discipline
• Banks have kept Investment Fluctuation Reserves to manage :
Ans. Interest rate risk
• Indian bank that has been named in the top 500 list of Fortune Global 500 companies :
Ans. State Bank of India
• Opening of branches by Banks is covered under _ of the Banking Regulation Act,1949 :
Ans. Section 23
• Banks have to file with Income Tax Department returns on a __ basis in respect of Interest paid to resident depositors not exceeding Rs. 10,000:
Ans. Quarterly
• RBI's permission to open a bank branch is valid for _ from the date of the consolidated authorization letter issued by it :
Ans. one year
• Which of the following is related to 'Yellow Revolution' :
Ans. Oilseeds Production
• Annual growth rate of national income was recorded lowest during :
Ans. Third Plan
• According to the Sarva Shiksha Abhiyan, India's every child would be able to go to school by :
Ans. 2015
• Banks prefer going. to Lok Adalat because :
Ans. No court fees,' no appeal and compromise decree.
• NICL is abbreviation of :
Ans. National Insurance Company Ltd.
• Who decides the quantum of agricultural finance :
Ans. District Technical Committee.
• The term Insider Trading refers to :
Ans. Sale and Purchase of shares based on classified information available to those connected with company.
• What is meant by Pari-Passu charge :
Ans. Pro-rata in the ratio of outstanding within the consortium approved limits.
• Which financial institutions converted into a Bank on 01.10.04 :
Ans. lDBI Ltd.
• Fire wall is used for :
Ans. Hardware/software to protect the IT system/website from unauthorized access.
• The foreign bank which has its own currency chest in India :
Ans. Standard Chartered
• What is Internet :
Ans. Network of Networks
• Expand INFINET :
Ans. Indian financial Network
• Deferred payment guarantee is a :
Ans. financial guarantee
• Net Block means :
Ans. Fixed Assets minus depreciation
• The declared objective of the 11 th Plan is :
Ans. Faster and More InclusiveGrowth
• Committee on Financial Inclusion for RRBs __ :
Ans. Dr. C Rangarajan.
• SARFAESI Act has been extended to loans advanced by :
Ans. RRBs.
• RRBs to accept :
Ans. NRE / FCNR deposits.
• National Housing Bank (NHB) to launch _ for senior citizens :
Ans. Reverse mortgage
• ___ , to be the sole identification no. for all participants in the securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account :
Ans. PAN.
• Limit of per investor per year with respect to Capital Gains bonds issued by NHAI and REC under section 54EC to continue :
Ans. Rs.50 lakh
• Risk weight on loans up to Rs.1 lakh against gold and silver ornaments for all categories of banks reduced to :
Ans. 50%
• Risk weight on residential housing loans to individuals for loans up to Rs.30 lakh has been reduced to % :
Ans. 50%
• The requirement of 'no due' certificate to be dispensed with for small loans up •to Rs. __ to Small and Marginal Farmers, share-croppers and the like and instead, obtain self-declaration from the borrower :
Ans. 1,00,000.
• RRBs can now take up Corporate agency business for distribution of insurance products, including health and animal insurance on basis :
Ans. Without risk participation.
• Under SARFAESI. secured creditor, before taking possession of the charged assets, should give notice of _ days to the borrower or his authorized agent :
Ans. 60
• For getting finance under SJSRY scheme, the max. project cost for Individuals :
Ans. 50000
• A company is inviting application for fixed deposits from general public. The FDRs so made by it will be classified under :
Ans. Liabilities
• A bill becoming due for payment within __ shall be treated under current liability :
Ans. 12 months.
• Exposure norms for different industries/indivlduals/ groups fixed by the Banks/RBI are part of :
Ans. Risk Management
• . Pre-operative expenses are included in :
Ans. Intangible assets
• Pre-paid expenses-are classified as :
Ans. Current assets
• Assets = Liabilities are as per :
Ans. Dual aspect concept
• Normally, Foreign Traveler cheque 'buying rate is better than Foreign currency rates because of :
Ans. Holding cost
• A bill of USD one lac under Letter of Credit is due for payment after one month. There is appreciation is rupee. The importer will :
Ans. Gain
• Dividend distribution tax is being paid by :
Ans. Company
• CBS refers to :
Ans. Centralized Banking Solution
• RBI has now dispensed with restrictive provisions of service area approach except for :
Ans. Loans under Govt Sponsored Programmes
• In deceased deposit accounts, where nomination has been exercised, banks to inform nominee within. _ months in case of deposit accounts 'and Within months in case of locker accounts :
Ans. 6 : 3
• Debtors velocity ratio of a company is very low, it does indicates :
Ans. Debtors collection management of the company is good
• At what rate, RBI provides advance to Banks against the Govt securities :
Ans. Repo Rate
• Best explain the term "CBLO' :
Ans. It is type of money market instrument, which is used to borrow and lend funds against securities
• Bill for collection appears in the balance sheet on :
Ans. Liability side
• The purpose of Star Series Numbered Notes is the :
Ans. To be issued to general public
• Increases in CRR causes :
Ans. Decreases the lendable resources of the banks
• A borrower has been sanctioned working Capital limit of Rs. 3 lacs at margin of 25%. The amount of stock required to avail the sanctioned limit fully :
Ans. 4.00 lacs
• The difference between Term loan and Deferred payment guarantee is the :
Ans. Outlay of funds
• Main advantage of Cheque Truncation is the :
Ans. It decreases the cost of handling of large paper volume of small vote cheques
• The basic Principal of WC management is :
Ans. Profitability goes with liquidity
• A company sells off part of its assets and make a separate company i.e., unlock its value. After selling off its assets it continues business with the remaining assets. This is called :
Ans. Spin off
• Corporate Governance comprises of :
Ans. Board of directors, Company officials & shareholders
• The Ratio is most affected by decrease in current liabilities :
Ans. Current Ratio
• The %age of risk weight on cash balances with RBI is :
Ans. 0%.
• The %age of risk weight on Central Govt. Guaranteed advances is the :
Ans. 0%
• As per RBI Act, the floor limit is __ and ceiling limit of CRR is____ :
Ans. Nil and 20%.
• The minimum Floor limit and maximum ceiling limit for SLR is :
Ans. Nil and 40%
• CRR is tnaintained as a %age of __ and SLR maintained as a %age. of __ :
Ans. NDTL : DTL .
• Up to how much period, pre-shipment credit card extended without the prior approval of RBI :
Ans. 360 days
• In Red Clause Letter of credit importer has given which type of banking facility for the benefit of the exporter :
Ans. Finance for purchase of raw material
• In respect of letter of credit business, the term "deferred credit' is used for :
Ans. a type of supplier's credit .
• complainant is not satisfied with the reply given, within a period of_ from the date of cause of action arise :
Ans. One year
• TDS will be deducted if amount of rent exceeds Rs. __ p.a. to single payee :
Ans. 1.20 lacs
• Tax deducted for deposit accounts should be deposited within :
Ans. 7 days of the following month.
• A cheque has been issued by Director of the Company is received after the death of the director. Whether cheque will be paid :
Ans. Yes, since cheque has been issued in the representative capacity
• Note printing by RBI results in :
Ans. Inflation generally
• USD is depreciating as compared to world currencies because of :
Ans. Current account deficit
• Which bank has launched EMI Card :
Ans. ICICI Bank.
• Maturity proceeds of FCNR (B) deposits can be remitted :
Ans. To the depositors and to third parties outside India at the request of the depositors
• Which is a derivative instrument in the financial market :
Ans. Credit default swap
• Multicity cheque is payable at all ___ branches :
Ans. Core banking
• In the case of a white label credit card the brand of the issuer is :
Ans. Not mentioned
• Which one of the following is true in respect of issue of duplicate CDs :
Ans. It can be issued only in physical form
• Process of inviting subscriptions to a public issue is through a tendering process which is known as :
Ans. Book building
• Bank's direct investment in shares, convertible bonds, debentures, units of equity oriented mutual funds and all exposures to venture capital should not exceed___ % of its net worth :
Ans. 20
• __ ATM eliminates the need for PIN entry and authenticated customer transactions by thumb impressions :
Ans. Biometric
• Provisions made by a bank in excess of the regulatory provisions is known as__ provisions :
Ans. Floating
• Innovative perpetual debt instruments are issued only with __ options :
Ans. Call
• A company incorporated outside India can issue :
Ans. IDR
• Who has formed the Rural Credit Bureau :
Ans. ICICI, CIBIL, NABARD
• Which one of the following is not the strength of SHG :
Ans. Super profit orientation
• Which is the widely accepted in the Money Market Operations :
Ans. Treasury Bills
• Maximum limit under General Credit Card is Rs._ 100% of the oulstandings are treated as __ agricultural advance :
Ans. Rs. 25,000 ; Indirect
• Date of expiry is not mentioned in the LC. Documents are presented for negotiation. In this case :
Ans. Cannot be negotiated as the LC is not valid.
• As per recent RBI guidelines Branch level Customer Committee should also include
___ as member :
Ans. A customer who should be senior citizen.
• Working group on procedure and processing of Agricultural loans is headed by_ :
Ans. C.P. Swarankar
• As per RBI directives, the complaints relating to cash not dispensed at ATMs although deposit account is debited etc. should be disposed of within a period of ___ :
Ans. 3 days.
• Which state is at the top of a list of best e-governed 20 states :
Ans. Goa
• Surrender value in the context of Life insurance policy means :
Ans. Minimum value that is given by an insurance company in the case of foreclosure of the policy
• Star series notes means those notes which are placed in replacement of defective notes issued in the denomination of :
Ans. Rs10, Rs 20, Rs 50
• When RBI sells the securities to banks and gets cash from banks under LAF, RBI pays interest to banks at :
Ans. Reverse Repo Rate
• Decision given by the Ombudsman has to be implemented by the bank within :
Ans. 1 month from the date of receipt of acceptance from complainant
• In the context of collection of cheques, conversion means :
Ans. Crediting the amount of the cheque to the account of a person who is not entitled to it.
• As per Section 19(2) of the Banking Regulation Act, a banking company shall not hold shares in a company, either as pledge or as owner of an amount exceeding _ of the paid up capital of the company or _of its own paid up capital and reserves whichever is less.
Ans. 30%, 30%
•______ is part of the larger emission trading which is a method worked out to control pollution by using economic incentives :
Ans. Carbon Trading
• According to Transparency International (TI) corruption index, India has ranked :
Ans. 72
• has agreed to declare all its nuclear programmes and disable its main atomic reactor by the end of the year under US supervision :
Ans. N. Korea
• For bank the main advantage of referring the matter to Lok Adalats is :
Ans. It is based on mutual consent hence decision and its execution is fast.
• For which of the following Industries Cash budget system for assessment of MPBF has recently been adopted by the bank :
Ans. Service, Software, Sugar, Tea.
• Probate is a document issue by Court of law and is the' nature of :
Ans. An official confirmation of the will of the deceased.
• Currency & Finance is a report being published by :
Ans. RBI
• Twin sisters of Bretton Woods :
Ans. World Bank and IMF.
• Which,type of Letter of Credits, pre-shipment credit is offered :
Ans. Red-clause letter of credit
• Explain the term 'Islamic Banking' :
Ans. Banking without the factor like" Interest on money deposited or lent"
• In Ombudsman Scheme, Customer Service Committee Report is to be submitted on __ basis :
Ans. Quarterly
• The risk associated with higher foreign exchange reserves is :
Ans. Exchange rate movement risk
• What is the maximum discount that a company can offer to retail investors for their public issues? :
Ans. 10%
• Which country has chosen the face of its motherhood as the first woman to be featured in its banknotes? :
Ans. South Korea
• India ranks as _ in the list of largest carbon emitters :
Ans. Fourth
• Who is the head of internal working gap set up by RBI to examine the recommendations of the Radhakrishna Export on Agricultural indebtedness? :
Ans. Mr V.S. Das,
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