Financial Awareness – 3

1. National Institute of Bank Management (NIBM) is located at:
a) Mumbai
b) Hyderabad
c) Pune
d) Kolkata
e) Mysore

• View Answer
  Answer: c

2. Which of the following committee report lead to the establishment of SBI?
a) Narasimham Committee
b) S.Chakravarthy Committee
c) All India Rural Survey Committee
d) RBI Select Committee
e) Damodaran Committee

• View Answer
  Answer: c

3. Certificates of Deposit (CDs) and Commercial Paper (CPs) are the instruments widely used in which of the following Financial Sector market?
a) Credit Market
b) Corporate Debt Market
c) Money Market
d) Stock Market
e) None

• View Answer
  Answer: c

4. Phased reduction in the SLR and CRR, accounting standards, income recognition norms and capital adequacy norms are some of the key recommendations of which of the following Committee?
a) S. Chakravarty Committee
b) Ranga Rajan Committee
c) All India Rural Credit Survey Committee
d) MV Nair Committee
e) Narsimahmam Committee

• View Answer
  Answer: e

5. Bharatiya Reserve Bank Note Mudran Limited established as a fully owned subsidiary of the Reserve bank. has it's Bank note press at:
a) Mysore
b) Dewas
c) Nasik
d) Noida
e) Hyderabad

• View Answer
  Answer: a

6. Federal Bank has tied up with US Based payments company for faster International Remittances. The features of this Tie Up are:
a) The US Based NRIs can Transfer money instantly to their NRI account in India
b) Transfer can be done through Debit Card
c) Transfer can be done through Credit card
d) There is no transfer fee if the amount is one thousand dollars or more
e) All the above

• View Answer
  Answer: e

7. Maximum permissible foreign investment in a private bank in India as permitted by RBI is____
a) 49%
b) 51%
c) 60%
d) 74%
e) 70%

• View Answer
  Answer: d

8. Every commercial Bank must transfer___ percentage of their net profits to a Statutory Reserve Fund every year mandatorily:
a) 20%
b) 25%
c) 30%
d) 40%
e)15%

• View Answer
  Answer: b

9. The Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor has recommended the formation of a new category of bank called____
a) Ultra Small Banks(USBs)
b) Local Area Banks(LABs)
c) Payments banks
d) Small Finance Banks(SFBs)
e) Medium Finance Banks (MFBs)

• View Answer
  Answer: c

10. Offering all types of financial products like banking, insurance, mutual funds, capital market related products - all at one place is known as:
a) All in All Banking
b) Whole sale Banking
c) Unique Banking
d) Umbrella Banking
e) Universal Banking

• View Answer
  Answer: e

11. As per SEBI guidelines, in a Book Building process the cap in the price band:
a) Should be at least 10% of the floor price
b) Should not be more than 20% of the floor price
c) Should not be more than 30%
d) Should not be more than 5%
e) No limits

• View Answer
  Answer: b

12. The type of arrangement under which a bank pays the seller the value of the bill and later collects it from the buyer on the due date is called:
a) Bill discounting
b) Factoring
c) Forfaiting
d) Bills Payable
e) None

• View Answer
  Answer: a

13. The 'Bankers Fair Practice' code was brought out by:
a) IBA
b) RBI
c) Banking Codes and Standards Board of India
d) Government of India
e) IDRBT

• View Answer
  Answer: a

14. Sans recourse means:
a) Without fear
b) Without liability to anyone
c) Without liability to me
d) Without liability to payee
e) Any of the above

• View Answer
  Answer: c

15. Committee on Reform of the Insurance Sector' was headed by:
a) RN Malhotra
b) B.Natarajan
c) S. Chakravarty
d) Narasimham
e) Ramachandran

• View Answer
  Answer: a

16. A customer is entitled to issuance of a duplicate DD in place of the lost one, provided:
a) He gives due intimation to the issuing branch
b) Payment of DD not already made by the drawee branch
c) Execution of an indemnity Bond
d) Execution of guarantee bond
e) All above

• View Answer
  Answer: c

17. Housing Loans granted to individuals up to Rs.___for construction of houses (excluding loans granted by banks to their employees) are treated as priority sector advances:
a) 5 lakhs
b) 10 lakhs
c) 25 lakhs
d) 15 lakhs
e) 20 lakhs

• View Answer
  Answer: c

18. Which of the following banks got a nod from SEBI during May 2016 for acting as Custodian of Securities and is given a 12 months’ time to establish its business?
a) Yes Bank
b) SBI
c) HDFC
d) Axis Bank
e) ICICI Bank

• View Answer
  Answer: a

19. Educational loans granted to individuals for educational purposes up to Rs.___for studies in India, will be classified as priority sector:
a) 7.5 lakhs
b) 10 lakhs
c) 15 lakhs
d) 20 lakhs
e) 4 lakhs

• View Answer
  Answer: b

20. The nature of charge created while advancing against LIC policies is called__.
a) Assignment
b) Lien
c) Pledge
d) Set-off
e) Simple Mortgage

• View Answer
  Answer: a

21. Which of the following is an electronic payment environment where Payment instructions processed on a 'continuous' basis and transactions are settled without' being waited for'?
a) NEFT
b) ECS (CREDIT)
c) SWIFT
d) RTGS
e) All

• View Answer
  Answer: d

22. Which Committee has recommended that the Reserve Bank of India should establish a data warehouse on banking and finance for the data collection and warehousing?
a) 1st Rangee of General Insurance Company
b) Vasudevan Committee
c) 2nd Rangarajan Committee
d) Iyer Committee
e) Dorairajan Committee

• View Answer
  Answer: b

23. Which of the following organisation was established as a subsidiary of the Reserve Bank of India with the purpose of providing long term industrial finance?
a) ICICI Ltd
b) IDBI Ltd
c) IFCI Ltd
d) Development Credit Bank of India (DCB)
e) None

• View Answer
  Answer: b

24. Agency which purchases NPA from banks is called:
a) Asset Management Company
b) Assets Reconstruction Company
c) Consolidation Company
d) Financial Reconstruction Company
e) None

• View Answer
  Answer: b

25. Which of the following are true about the Senior Citizen Saving Scheme(SCSS) ?
a) Can be opened in any Post Office across India.
b) Can be opened in any of the branches of Nationalised and Private Banks
c) Can be opened by any individual who has attained 60 years of age
d) Can be opened by Individuals who has attained 55 years of age and has retired on superannuation or has taken VRS
e) All the above

• View Answer
  Answer: e

26. Clearing House Inter-bank Payment System (CHIPS) is a Inter-bank Payment System based at:
a) Hongkong
b) London-UK
c) New York-USA
d) Europe
e) Malaysia

• View Answer
  Answer: c

27. Working capital requirement depends upon___?
a) Level of activity
b) Types of business carried
c) Nature of Production cycle
d) All the above
e) None

• View Answer
  Answer: d

28. Who has been appointed as the new Governor of Bangladesh Bank, country’s Central Bank?
a) Dr. Mohammad Farasuddin
b) Dr. Atiur Rahman
c) Fazel Kabir
d) Kenneth Frazier
e) Dr. Salahuddin Ahmed

• View Answer
  Answer: c

29. Which of the following denominations are in circulation in India?
a) 5
b) 10
c) 15
d) 50
e) None of these

• View Answer
  Answer: c

30. Money has time value because:
a) The individual prefer future consumption to present consumption
b) A rupee today can be productive deployed to general real returns tomorrow
c) A rupee worth today is worth more than tomorrow
d) Money always has its same value
e) Only a & b

• View Answer
  Answer: c

31. During January 2016 on which bank Rs. 1crore penalty was levied by RBI for violation of CRILC norms?
a) SBT
b) SBI
c) ICICI
d) SBH
e) BOM

• View Answer
  Answer: a

32. What is the deadline for exchanging pre-2005 notes?
a) 30/6/2016
b) 31/12/2016
c) 31/8/2016
d) 30/9/2016
e) 30/7/2016

• View Answer
  Answer: a

33. Which Bank has announced launching of mVISA which helps customers to make payments through smart phones by simply scanning the Unique Merchant QR(Quick Response) code at Merchant Outlets?
a) United Bank of India
b) Union Bank of India
c) State Bank of India
d) Bank of Baroda
e) Bank of india

• View Answer
  Answer: c

34. Money received by Payment Banks shall be invested only in?
a) Post Office
b) LIC
c) Government Bonds
d) National Banks
e) Central Banks

• View Answer
  Answer: c

35. By which rate SLR shall be brought down by banks by March 2017?
a) 20.50%
b) 12.50%
c) 16.50%
d) 19.50%
e) 18.50%

• View Answer
  Answer: a

36. Headquarters of AIIB(Asian Infrastructure Investment Bank) is situated in:
a) Delhi
b) Tokyo
c) Lahore
d) Bejing
e) None

• View Answer
  Answer: d

37. The stock of money in circulation in the economy at a given point of time is known as ____
a) Currency supply
b) Money value supply
c) Value supply
d) Money supply
e) Stock invest supply

• View Answer
  Answer: d

38. Narrow Money (M1) refers to __
a) Currency with the public
b) Demand deposits with the banking system
c) "Other" deposits with the RBI
d) Currency with the public + Demand deposits with the banking system + "Other" deposits with the RBI
e) Only a & b

• View Answer
  Answer: d

39. M2 is equal to ___
a) M1 + share market transactions
b) M1 + foreign exchange reserves
c) M1 + Government treasury
d) M1 + Savings deposits of post office savings banks
e) M3 - M1

• View Answer
  Answer: d

40. M3 is equal to___
a) M1 + Time deposits with the banking system
b) M1 + Time deposits with post offices
c) M1 + Time deposits with the banking system and post offices
d) M4 - M1
e) None of the above

• View Answer
  Answer: a

41. It is proposed to set up a bank responsible to set up a Bank Board Bureau that would be responsible for appointment for top jobs at public sector banks which are presently made through a committee led by the ____
a) Secretary ministry of finance
b) Governor, Reserve bank of India
c) Finance Minister
d) Secretary, department of financial services
e) Prime Minister

• View Answer
  Answer: b

42. The Union Cabinet has recently given approval for the creation of Credit Guarantee Fund for MUDRA Units (CGFMU) for guaranteeing loans sanctioned under:
a) PMKSY
b) PMGSY
c) PMMY
d) PMRY
e) PMVY

• View Answer
  Answer: c

43. Banks enter into compromise with borrowers in case of default, because:
a) Recovery through legal action is time consuming
b) Adequate security is not available
c) Realization or security may be difficult
d) a, b, c
e) a, b only

• View Answer
  Answer: d

44. With which of the following banks The New Bank of India was merged during the year 1993?
a) Bank of India
b) Central Bank of India
c) Bank of Baroda
d) Punjab National Bank
e) State Bank of India

• View Answer
  Answer: d

45. A rise in general prices caused by increasing aggregate demand for goods and services is called:
a) Pull Inflation
b) Demand Inflation
c) Demand-Supply Inflation
d) Demand-Pull Inflation
e) Cost Push Inflation

• View Answer
  Answer: d

46. According to the RBI guidelines an individual borrower can now avail from two Microfinance Institutions (MFI), a maximum loan up to ______
a) Rs. 85,000/-
b) Rs. 1,50,000/-
c) Rs. 75,000/-
d) Rs. 50,000/-
e) Rs. 1,00,000/-

• View Answer
  Answer: e

47. If NBFCs provide services similar to traditional commercial banks, it is known as:
a) Off-shore banking
b) Investment banking system
c) Shadow banking system
d) Conventional banking system
e) Merchant banking system

• View Answer
  Answer: c

48. In which of the following states The Union Government has recently launched Ganga Gram Yojana to develop 1600 villages along the banks of River Ganga?
a) Uttar Pradesh
b) West Bengal
c) Uttarakhand
d) Bihar
e) Himachal Pradesh

• View Answer
  Answer: a

49. Inflationary conditions may co-exist with which of the following situation?
a) Increase in factor cost
b) Increase in employment opportunities
c) Growth in GDP and imports
d) Only a, b
e) a, b, c

• View Answer
  Answer: e

50. Under Micro and Small Enterprises and Medium Enterprises Development Act (MSMED Act, 2006), what is the investment limit for an enterprise to be called as "micro enterprise" in Service sector?
a) Investment does not exceed Ten lakh rupees
b) Investment does not exceed Twenty five lakh rupees
c) Investment does not exceed Fifteen lakh rupees
d) Investment does not exceed Five to ten lakh rupees
e) Investment does not exceed Twenty lakh rupees

• View Answer
  Answer: a

51. Which of the following High level Committee has recommended prudential measures for banks while giving Guarantees and Co-acceptances?
a) Narasimham Committee
b) A. Ghosh Committee
c) Raja Raman Committee
d) Malegam Committee
e) Rangarajan Committee

• View Answer
  Answer: b

52. A method of financing the receivables of a business enterprise is known as _____
a) Bills Discounting (BD)
b) Bills Payable (BP)
c) Factoring
d) Swapping
e) Bill purchase

• View Answer
  Answer: c

Published date : 18 May 2016 12:06PM