1) When did the nationalisation of major banks happen?
a. June, 1951
b. June, 1961
c. June, 1969
d. July, 1969
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Answer
Explanation
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ANSWER: July, 1969
Explanation:
In the early years of independence the number of bank offices was very small. The process of expansion gathered momentum after the nationalisation of the major banks in July, 1969. At the end of March, 2009 there were over 80,547 scheduled commercial bank offices in India excluding the administrative offices. The major thrust in branch expansion in the country has come only from the public sector banks. Meanwhile, the RBI has liberated its branch licensing policy and given full freedom to nationalised banks for opening new branches.
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2) 2. The main objectives of the Export-Import Bank (EXIM Bank) are to:
(i) ensure an integrated and coordinated approach to solving the problems of exporters
(ii) provide special attention to capital goods export and export of technical services
(iii) tap domestic and overseas markets for resources, undertake development and finance activities in the areas of exports.
(iv) provide financial assistance to the exporters and importers and act as the principal financial institution for coordinating the working of other institutions engaged in financing exports and imports.
(v) provide refinance facilities to commercial banks and financial institutions against their export-import financing activities.
a. both (i) and (ii)
b. only (iii), (iv), and (v)
c. All the above
d. None of the above
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Answer
Explanation
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ANSWER: All the above
Explanation:
Export-Import Bank of India is the premier export finance institution in India, established in 1982 under the Export-Import Bank of India Act 1981
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3) When was Triton Insurance Company Ltd established?
a. 1834
b. 1850
c. 1907
d. 1938
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Answer
Explanation
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ANSWER: 1850
Explanation:
The first General Insurance Company in India was Triton Insurance Company Ltd. It was set up under the control of British.
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4) What is Factoring?
a. An easy way of raising capital from a factoring company by small business
b. Selling of account receivables on a contract basis for cash payment to a factor before it is due
c. An arrangement for raising short term money against prepaid expenses
d. A method of discounting of long term bills
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Answer
Explanation
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ANSWER: Selling of account receivables on a contract basis for cash payment to a factor before it is due
Explanation:
The three parties involved are the ones who purchase the receivable, the ones who sell the receivable, and the debtors who have a Financial Liability.
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5) Which one of the following is called as initial repayment holiday given to a borrower for repayment of loan?
a. Amortization
b. Moratorium
c. Subvention
d. None of the above
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Answer
Explanation
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ANSWER: Moratorium
Explanation:
The interest rate charged during the moratorium is charged quarterly or half yearly on simple interest basis.
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6) What is the full form of FSDC?
a. Financial Security and Development Council
b. Financial Stability and Development Council
c. Financial Security and Development Convention
d. Fiscal Stability and Development Council
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Answer
Explanation
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ANSWER: Financial Stability and Development Council
Explanation:
The Government of India constituted Financial Stability and Development Council.
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7) Which of the following permit cheque operation?
a. Savings bank accounts and fixed deposit accounts
b. Current accounts and fixed deposit accounts
c. Savings bank accounts and cash accounts
d. Savings bank accounts and current accounts
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Answer
Explanation
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ANSWER: Savings bank accounts and current accounts
Explanation:
When a customer draws a cheque on a bank, it is a mandate on that bank to pay.
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8) Which bank was the sponsor of Prathama Gramin Bank?
a. Bank of Baroda
b. Indian Bank
c. Punjab National Bank
d. Syndicate Bank
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Answer
Explanation
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ANSWER: Syndicate Bank
Explanation:
Prathama Bank was the first Regional Rural Bank established on 2 October 1975.
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9) What does RTGS enable?
a. Immediate transfer of money from customer of one bank to customer of another bank
b. Immediate transfer of money from customer of one bank to customer of another branch within the same bank
c. Immediate transfer of money from customer of one bank to customer of another country
d. Immediate transfer of money from customer of one bank to customer of RBI
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Answer
Explanation
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ANSWER: Immediate transfer of money from customer of one bank to customer of another bank
Explanation:
Real Time Gross Settlement Systems are specialist fund transfer systems where transfer of money takes place on "real time" and on "gross basis"
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10) With whom does the ownership of Public sector banks rest?
a. Wholly with Government of India
b. Jointly with Government of India and share-holders from the public
c. Jointly with Government of India and State Bank of India
d. Jointly with Government of India and Reserve Bank of India
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Answer
Explanation
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ANSWER: Jointly with Government of India and share-holders from the public
Explanation:
Public Sector Banks are banks where a majority stake is held by a government.
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11) What happens if a cheque is post dated?
a. Bank on whom it is drawn will not honour the cheque before the date of the cheque
b. Bank on whom it is drawn has to honour the cheque before the date of the cheque
c. Bank on whom it is drawn has to refer to RBI to honour the cheque before the date of the cheque
d. Bank on whom it is drawn has to refer to court to honour the cheque before the date of the cheque
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Answer
Explanation
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ANSWER: Bank on whom it is drawn will not honour the cheque before the date of the cheque
Explanation:
Post-dated cheque is a cheque written by the drawer for a date in the future
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12) Who issues 'Commercial Papers'?
a. A Company to a Bank
b. Banks to Banks
c. Banks to Companies
d. Company to its suppliers
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Answer
Explanation
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ANSWER: Banks to Banks
Explanation:
Commercial Paper is one of the instruments through which Corporates raise debt from the market.
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13) Which of the following sets up core banking infrastructure for rural banks?
a. IBA
b. NABARD
c. RBI
d. SIDBI
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Answer
Explanation
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ANSWER: NABARD
Explanation:
National Bank for Agriculture and Rural Development has set up joint liability groups (JLG) of farmers to facilitate delivery of credit to farmers. Providing refinance to State Co-operative Banks, Scheduled Commercial Banks and Regional Rural Banks; co-ordinating the activities of different agencies in the field of agriculture and rural credit; improving absorptive capacity of credit delivery system are the major activities of NABARD.
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14) Who regulates the Mutual Funds in India?
a. FRBI
b. SEBI
c. SIDBI
d. RBI
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Answer
Explanation
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ANSWER: SEBI
Explanation:
The Securities and Exchange Board of India is the regulator for the securities market in India.
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15) What do bank customers pay for using safe deposit locker facilities?
a. Commission on locker
b. Exchange on locker
c. Rent on locker
d. Safe custody charges
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Answer
Explanation
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ANSWER: Rent on locker
Explanation:
A safe deposit box is an individually secured container usually held within a larger safe or bank vault.
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16) What does the letter 'R' denote in the abbreviation 'BR Act' which controls banking activities in the country?
a. Reclamation
b. Reformation
c. Regulation
d. Rule
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Answer
Explanation
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ANSWER: Regulation
Explanation:
Winding up of a banking company is done under the provisions of the Banking Regulation Act, 1949. The reasons for this are inability to pay its debts; moratorium placed on the bank or failure to comply with minimum capital adequacy; failure to comply with requirements of Banking Regulation Act.
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17) Which is the minimum lending rate decided by RBI which shall be adopted by all Public Sector Banks?
a. Bank rate
b. Base rate
c. Overnight rate
d. None of the above
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Answer
Explanation
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ANSWER: Base rate
Explanation:
It is also known as prior probabilities.
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18) What is the cost of credit expressed as a percentage on a yearly basis called?
a. APR
b. APY
c. WPI
d. None of these
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Answer
Explanation
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ANSWER: APR
Explanation:
The Annual Percentage Rate (APR) is the simplified counterpart to the effective interest rate that the borrower will pay on a loan.
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19) Which of the following helps the consumers protect their credit identities and recover from identity theft?
a. FACTA
b. FCRA
c. FDCPA
d. FOIA
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Answer
Explanation
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ANSWER: FACTA
Explanation:
The Fair and Accurate Credit Transactions Act (FACTA) of 2003 is a United States federal law. It is passed by the United States Congress on November 22.
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20) Which of the following is the amount of Funds borrowed by the government to meet the expenditures?
a. Fiscal Deficit
b. Current account
c. Fiscal policy
d. Public finance
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Answer
Explanation
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ANSWER: Fiscal Deficit
Explanation:
A country's fiscal deficit is communicated as a percentage of its gross domestic product (GDP).
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21) Which of the following pools money from various investors in order to purchase securities?
a. Fund derivative
b. Money fund
c. Mutual fund
d. Pension fund
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Answer
Explanation
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ANSWER: Mutual fund
Explanation:
Investors in a mutual fund pay the fund's expenses, which reduce the fund's returns and performance.
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22) Which of the following is used when describing the monthly charges on a mortgage?
a. BIS
b. CPI
c. FII
d. PITI
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Answer
Explanation
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ANSWER: PITI
Explanation:
PITI is the common acronym for principal, interest, taxes, and insurance.
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23) Which of the following is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds?
a. Benchmark Prime Lending Rate
b. Annual Percentage Rate
c. Bank Rate
d. Repo Rate
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Answer
Explanation
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ANSWER: Repo Rate
Explanation:
If Repo rate increases it becomes expensive to borrow money from RBI and vice versa.
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24) Which was the first Indian bank to get ISO?
a. Canara Bank
b. Punjab National Bank
c. State Bank of India
d. Central Bank of India
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Answer
Explanation
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ANSWER: Canara Bank
Explanation:
Canara Bank was established in 1906. The bank was nationalised in 1969.
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25) Who was the founder of Punjab National Bank?
a. Bal Gangadhar Tilak
b. Bhagat Singh
c. Bipin Chandra Pal
d. Lala Rajpat Rai
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Answer
Explanation
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ANSWER: Lala Rajpat Rai
Explanation:
His death anniversary is celebrated as Martyrs' Day in India.
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26) Which was the first bank to introduce cheque system in India?
a. Bengal Bank
b. Bank of Hindustan
c. General Bank of India
d. Presidency Bank
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Answer
Explanation
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ANSWER: Bengal Bank
Explanation:
In 1833, cheque system was introduced by Bengal Bank.
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27) Whose signature do the 1 Rupee currency note bear?
a. Governor of RBI
b. Finance Secretary
c. Finance Minister
d. The President
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Answer
Explanation
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ANSWER: Finance Secretary
Explanation:
The Ministry of Finance concerns itself with taxation, financial legislation, capital markets, centre and state finances, and the Union Budget.
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28) What is the full form of TIBOR?
a. Tokyo Interbank Offered Rate
b. Tokyo-India Bureau Of Regulations
c. The Interbank Offered Rate
d. None of the above
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Answer
Explanation
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ANSWER: Tokyo Interbank Offered Rate
Explanation:
It is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks.
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29) Which is the largest bank in the world?
a. BNP Paribas
b. China Construction Bank Corporation
c. HSBC Holdings
d. Industrial & Commercial Bank of China
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Answer
Explanation
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ANSWER: Industrial & Commercial Bank of China
Explanation:
Industrial and Commercial Bank of China Ltd. is the largest bank in the world by total assets. It was founded on January 1, 1984.
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30) According to which guidelines did the Government pick up the entire SBI shares held by the RBI?
a. National Stock Exchange of India
b. Securities Commission
c. Financial Regulations
d. Securities and Exchange Board of India (SEBI)
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Answer
Explanation
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ANSWER: Securities and Exchange Board of India (SEBI)
Explanation:
As per the guidelines of the Securities and Exchange Board of India (SEBI), the Government picked up the entire SBI shares held by the RBI at a price of Rs. 1,130.35 a share.
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31) The subsidiary banks attached to the State Bank are:
(i) State Bank of Bikaner and Jaipur
(ii) State Bank of Hyderabad
(iii) State Bank of Indore
(iv) State Bank of Mysore
(v) State Bank of Patiala
(vi) State Bank of Saurashtra
(vii) State Bank of Travancore
a. Only (i) , (v), and (vi)
b. Only (ii), (iii), (iv), and (vii)
c. All the above
d. None of the above
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Answer
Explanation
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ANSWER: All the above
Explanation:
No explanation is available for this question!
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32) When was the National Bank of Agriculture and Rural Development established?
a. July, 1982
b. July, 1969
c. June, 1951
d. June, 1961
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Answer
Explanation
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ANSWER: July, 1982
Explanation:
In the field of rural credit and agricultural development, establishment of NABARD is a major event. The National bank of Agriculture and Rural Development as an apex body with the responsibility for the overall development, policy, planning and financial support for agriculture and rural development was established on 12th July 1982.
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33) Which bank had the highest concentrations of operations overseas in 2010?
a. Bank of Baroda
b. Bank of India
c. State Bank of India
d. Union Bank of India
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Answer
Explanation
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ANSWER: Bank of Baroda
Explanation:
Bank of Baroda had the highest concentrations of operations with 46 branches, 8 subsidiaries, 3 representative offices and 1 joint venture bank, followed by State Bank of India with 42 branches, 5 subsidiaries, 4 joint ventures and 8 representative offices, and Bank of India with 24 branches, 3 subsidiaries, 1 joint venture bank and 5 representative offices.
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34) When was Life Insurance sector nationalised?
a. 1834
b. 1907
c. 1938
d. 1956
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Answer
Explanation
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ANSWER: 1956
Explanation:
Life Insurance Corporation came into existence in 1956.
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35) When was the Indian Mercantile Insurance established?
a. 1907
b. 1938
c. 1957
d. 1973
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Answer
Explanation
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ANSWER: 1907
Explanation:
The first company to transact all classes of general insurance business was the Indian Mercantile Insurance.
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36) When was the Export Credit Guarantee Corporation of India established?
a. 1938
b. 1957
c. 1973
d. 1971
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Answer
Explanation
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ANSWER: 1957
Explanation:
On 30 July 1957, Export Credit Guarantee Corporation of India Ltd. ( ECGC ) was established. It provides export credit insurance facilities to exporters and banks in India. It functions under the administrative control of Ministry of Commerce & Industry.
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37) What is the expanded form of the term ALM used in banking sector?
a. Asset Liability Maintenance
b. Asset Liability Management
c. Asset Liability Manipulation
d. Asset Liability Maximisation
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Answer
Explanation
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ANSWER: Asset Liability Management
Explanation:
ALM is the practice of managing risks that arise due to mismatches between the assets and liabilities.
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38) Which one of the following does not belong to regulatory bodies in India?
a. FMC
b. IRDA
c. PFRDA
d. SEBI
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Answer
Explanation
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ANSWER: SEBI
Explanation:
Reserve Bank of India, Insurance Regulatory and Development Authority, Forward Market Commission India, Pension Fund Regulatory and Development Authority are the regulatory bodies in India.
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39) What is Call Money?
a. Money borrowed or lent for a day or over night
b. Money borrowed for more than one day but up to 3 days
c. Money borrowed for more than one day but up to 7 days
d. Money borrowed for more than one day but up to 14 days
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Answer
Explanation
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ANSWER: Money borrowed or lent for a day or over night
Explanation:
If it exceeds one day, it is referred to as “notice money”.
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40) What is the most powerful tool used by the Reserve Bank of India to control inflation?
a. Raise interest rates
b. Raise current supply
c. Reduce current supply
d. Reduce interest rates
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Answer
Explanation
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ANSWER: Raise interest rates
Explanation:
No explanation is available for this question!
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41) Name the bank announced to be setup in the budget for regulating and refinancing all Micro-finance Institutions (MFI) which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities?
a. Micro Bank
b. SIDBI Bank
c. MUDRA Bank
d. Micro-Finance Bank
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Answer
Explanation
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ANSWER: MUDRA Bank
Explanation:
The government announced Micro Units Development and Refinance Agency (MUDRA) Bank to be set up with a capital of Rs 20,000 Crore for regulating and refinance all micro-finance institutions. Additional 3,000 Crore rupees would be provided to the MUDRA Bank from the budget to create a Credit Guarantee corpus for guaranteeing loans being provided to the micro enterprises.
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42) Name the scheme announced in the budget 2015-16 under which accidental death insurance cover for up to Rs 2 lakh will be provided to the people of age group of 18-70 years?
a. Atal Jeevan Beema Yojana
b. Pradhan Mantri Suraksha Bima Yojana
c. Pradhan Mantri Jeevan Jyoti Bima Yojana
d. Atal Pension Yojana
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Answer
Explanation
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ANSWER: Pradhan Mantri Suraksha Bima Yojana
Explanation:
Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before June 1 in order to join the scheme. The scheme will be offered by all public sector general insurance companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.
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