1) What is the full form of CVV?
a. Call Verification Value
b. Card Verification Value
c. Credit Verification Value
d. None
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Answer
Explanation
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ANSWER: Card Verification Value
Explanation:
It is a security feature for payment card transactions. It reduce the credit card fraud.
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2) Which is the committee on Banking Ombudsman?
a. Parthasarathi Shome
b. B. Shivaraman Committee
c. Suma Verma Committee
d. Shri Raghuram Rajan Committee
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Answer
Explanation
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ANSWER: Suma Verma Committee
Explanation:
The Reserve Bank of India set up a working group to update the Banking Ombudsman Scheme, 2006.
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3) What does the acronym DICGC mean?
a. District Industries Centre and Government College
b. Department of Insurance in Central Govt. Company
c. Deposit Insurance and Credit Guarantee Corporation
d. Deputy Inspector & Commissioner General for Commodities Trading
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Answer
Explanation
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ANSWER: Deposit Insurance and Credit Guarantee Corporation
Explanation:
DICGC insurance cover is headed by Central Government.
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4) 'Subprime lending' is a term applied to the loans made to _________.
a. Those borrowers who do not have a good credit history
b. Those borrowers who have a good credit history
c. Those borrowers who do not have a good debit history
d. Those borrowers who have a good debit history
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Answer
Explanation
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ANSWER: Those borrowers who do not have a good credit history
Explanation:
These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk.
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5) Which of the following are to be followed by Commercial Banks for risk management?
a. Basel II norms
b. Basel III norms
c. Basel I norms
d. Solvency II norms
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Answer
Explanation
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ANSWER: Basel II norms
Explanation:
Basel II is the second of the Basel Accords which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.
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6) Which bank launched Mobile Bank Accounts in association with Vodafone's m-paisa?
a. Bank of Baroda
b. HDFC Bank
c. ICICI Bank
d. Punjab National Bank
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7) Which is the largest private sector bank in India?
a. Axis Bank
b. ICICI Bank
c. HDFC Bank
d. South Indian Bank
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Answer
Explanation
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ANSWER: ICICI Bank
Explanation:
It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, asset management etc.
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8) Which was the second bank in India with limited liability?
a. Punjab National Bank
b. Imperial Bank of India
c. New Bank of India
d. State Bank of India
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Answer
Explanation
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ANSWER: Punjab National Bank
Explanation:
Banking is over 130 years' old in India. The first bank with limited liability managed by Indians was Oudh Commercial Bank founded in 1881. Subsequently, Punjab National Bank was established.
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9) When did the banking crisis of 1913-1917 end?
a. 1917
b. 1949
c. 1955
d. 1959
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Answer
Explanation
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ANSWER: 1949
Explanation:
The banking crisis of 1913-1917 and the failure of 588 banks in various states during the decade ended in 1949. It underlined the need for the regulation and coordination of commercial banks.
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10) Which among the following is not a public sector bank?
a. Allahabad Bank
b. City Union Bank
c. UCO Bank
d. Vijaya Bank
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Answer
Explanation
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ANSWER: City Union Bank
Explanation:
The City Union Bank is a private sector bank. The bank 'The Kumbakonam Bank Limited', as it was called then, was organized as a limited company on the 31st of October, 1904. In the beginning it was a regional bank but steadily built for itself a place in the Delta District of Thanjavur.
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11) Who headed the committee on Credit Information Reports (CIRs)?
a. Raghuram Rajan
b. Kaushik Basu
c. K.V Kamath
d. Aditya Puri
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Answer
Explanation
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ANSWER: Aditya Puri
Explanation:
No explanation is available for this question!
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12) Which of the following is true about the restrictions on RBI?
(i) It is not to compete with the commercial banks.
(ii) It is not allowed to pay interest on its deposits.
(iii) It cannot engage directly or indirectly in trade.
(iv) It cannot acquire or advice loans against immovable property.
(v) It is prohibited from purchasing its own shares or the shares of any other bank or any company or granting loans on such security.
a. Only (i),(ii),(iii), and (iv)
b. Only (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:
No explanation is available for this question!
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13) Which is the largest commercial bank of the country?
a. Bank of India
b. Canara Bank
c. State Bank of India
d. Union Bank of India
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Answer
Explanation
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ANSWER: State Bank of India
Explanation:
The State Bank of India is the largest commercial bank of the country and is among the 100 topmost banks in the world, excluding the United States of America.
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14) Deposits mobilised by the banks are utilised for.
(i) loans and advances
(ii) investment in government and other approved securities in fulfilment of liquidity stipulation
(iii) investment in commercial paper, shares, debentures up to stipulated ceilings
a. Only (i)
b. Both (ii) and (iii)
c. All the above
d. None of the above
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Answer
Explanation
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ANSWER: All the above
Explanation:
Deposits mobilised by the banks are utilised for loans and advances, investment in government and other approved securities in fulfilment of liquidity stipulation, and investment in commercial papers, shares, debentures up to stipulated ceilings. After the nationalisation of major commercial banks in the country, there has been marked expansion in their business, both with regard to the bank deposits as well as the bank credit. The accretion of deposits was primarily on account of time deposits which increased substantially despite the downward movement of the interest rates and reflected the "safe haven" sentiment.
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15) When was the General Insurance Council formed?
a. 1938
b. 1957
c. 1973
d. 1971
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Answer
Explanation
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ANSWER: 1957
Explanation:
The General Insurance Council was established under the Indian Insurance Act 1938. It designed a code of conduct to ensure fair business practices.
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16) Who sets up 'Base Rate' for Banks?
a. Individual Banks Board
b. Interest Rate Commission of India
c. RBI
d. None of the above
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Answer
Explanation
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ANSWER: RBI
Explanation:
Base Rate is the rate below which no Bank can allow their lending to anyone.
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17) Which organization provides guarantee to the exporters?
a. Exim Bank
b. Export Credit Guarantee Corporation
c. Reserve Bank of India
d. Registrar of companies
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Answer
Explanation
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ANSWER: Export Credit Guarantee Corporation
Explanation:
On 30 July 1957, the ECGC Limited was established with an objective to provide insurance cover in respect of risks in export trade.
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18) Which of the following is not a part of India's Money Market?
a. Banks
b. Bill Markets
c. Call Money Market
d. Indian Gold Council
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Answer
Explanation
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ANSWER: Indian Gold Council
Explanation:
The Money market in India is the money market for short-term and long-term funds with maturity ranging from overnight to one year in India including financial instruments that are deemed to be close substitutes of money.
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19) What happens if a crossed cheque is presented for payment?
a. It can be paid only through a banker
b. It cannot be paid at all
c. It can be paid across the counter in another bank
d. None of the above
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Answer
Explanation
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ANSWER: It can be paid only through a banker
Explanation:
A crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed.
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20) What is an Indian Depository Receipt?
a. An instrument in the form of deposit receipt issued by Indian depositories
b. An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
c. A deposit account with a Public Sector Bank
d. A depository account with any of Depositories in India
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Answer
Explanation
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ANSWER: An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
Explanation:
Standard Chartered PLC became the first global company to file for an issue of Indian depository receipts in India.
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21) What are NEFT and RTGS about?
a. Cheque truncation process
b. Electronic fund transfer from bank to bank
c. Electronic payment products within a bank
d. Various deposit products
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Answer
Explanation
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ANSWER: Electronic fund transfer from bank to bank
Explanation:
NEFT operates on a deferred net settlement (DNS) basis and settles transactions in batches. In RTGS, transactions are processed continuously, all through the business hours.
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22) When should an account be treated as "out of order"?
a. If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 90 days
b. If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 60 days
c. If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 30 days
d. If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for one year
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Answer
Explanation
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ANSWER: If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 90 days
Explanation:
If the outstanding balance remains continuously in excess of the sanctioned limit/drawing power and in cases where the outstanding balance is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days or the credits are not enough to cover the interest during the same period, then the account should be treated as "out of order".
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23) Which organization provides credit history of the borrowers?
a. CIBIL
b. CII
c. FRBI
d. IRDA
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Answer
Explanation
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ANSWER: CIBIL
Explanation:
Credit Information Bureau Limited is the first Credit Information Company in India.
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24) Which among the following made the initial contribution for setting up Financial Inclusion Fund and Financial Inclusion Technology Fund?
a. Government of India, NABARD and RBI
b. NABARD, UTI and RBI
c. SIDBI, Government of India and IDBI Bank
d. SIDBI, NABARD and UTI
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Answer
Explanation
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ANSWER: Government of India, NABARD and RBI
Explanation:
The objectives of the FIF shall be to support developmental and promotional activities with a view to securing greater financial inclusion, particularly among weaker sections, low income groups and in backward regions/hitherto unbanked areas. The objectives of FITF shall be to enhance investment in Information Communication Technology (ICT) aimed at promoting financial inclusion, stimulate the transfer of research and technology in financial inclusion, increase the technological absorption capacity of financial service providers/users and encourage an environment of innovation and cooperation among stakeholders.
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25) What is the percentage rate reflecting the total amount of interest paid on a deposit account called?
a. APR
b. APY
c. WPI
d. None of these
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Answer
Explanation
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ANSWER: APY
Explanation:
No explanation is available for this question!
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26) Which of the following gives consumers the right to see their credit records and correct mistakes?
a. FACTA
b. FCRA
c. FDCPA
d. FOIA
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Answer
Explanation
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ANSWER: FCRA
Explanation:
The Fair Credit Reporting Act (FCRA) is a Federal law established in 1971 and revised in 1997.
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27) Which of the following is the ratio of the loan principal to the appraised value?
a. Combined Loan To Value: (CLTV) ratio
b. Loan-to-Value Ratio
c. Mortgage Loan
d. Statutory Liquidity Ratio
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Answer
Explanation
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ANSWER: Loan-to-Value Ratio
Explanation:
The loans with LTV ratios higher than 100% are called underwater mortgages.
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28) Which is the policy that offers multiple coverage combinations for both buildings and contents?
a. PRP
b. REPO
c. UNDP
d. WPI
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29) Which one of the following is a set of statutes enacted to provide consistency among the States' commercial laws?
a. AIRSCS
b. ARC
c. NSC
d. UCC
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Answer
Explanation
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ANSWER: UCC
Explanation:
Uniform Commercial Code (UCC) includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading.
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30) Which scheme announced in the Budget 2015-16 is aimed to provide life insurance cover of Rs. 2 lakh in case of death for any reason?
a. Pradhan Mantri Jeevan Beema Yojana
b. Pradhan Mantri Suraksha Bima Yojana
c. Pradhan Mantri Jeevan Jyoti Bima Yojana
d. Atal Beema Yojana
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Answer
Explanation
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ANSWER: Pradhan Mantri Jeevan Jyoti Bima Yojana
Explanation:
The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose. This scheme is available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the life cover up to the age of 55 years subject to payment of premium.
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31) Name the scheme that will replace the existing Swavalamban Scheme with effect from 1st June’2015?
a. National Pension Scheme
b. Atal Pension Yojana
c. Pradhan Mantri Vradha Pension Scheme
d. None of these
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Answer
Explanation
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ANSWER: Atal Pension Yojana
Explanation:
The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA) and who are not members of any statutory social security scheme. Under the APY, the subscribers would receive the fixed pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY. The minimum age of joining APY is 18 years and maximum age is 40 years.
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