1. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above
2. What is the purpose of reduction in Cash Reserve Ratio (CRR)?
a) Reduce Credit Flow
b) Enhance Credit Flow
c) Enhance availability of cash
d) Reduce Cash transactions
e) None of the above
3. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate
in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above
4. Who notifies Foreign Trade Policy?
a) RBI
b) DGFT
c) Govt. of India
d) ECGC
e) None of the above
5. Cash kept in the currency chest is owned by?
a) Currency Chest branch bank
b) State Bank of India
c) Central Government
d) Reserve Bank of India
e) None of the above
6. Expand the term LIBOR as used in financial banking sectors?
a) Local Indian Bank Offered Rate
b) London-India Bureau of Regulations
c) Liberal International Bank Official Ratio
d) London Inter Bank Offered Rate
e) None of the above
7. Which one of the following rates is NOT decided by the RBI?
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Income Tax Rates
e) Only a & b
8. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as:
a) Participation
b) Consortium
c) Syndication
d) Multiple Banking
e) All the above
9. The headquarters of International Monetary Fund is ___
a) Geneva
b) Paris
c) London
d) Manila
e) Washington
10. The first insurance company was started in India in 1818 at:
a) Kolkata
b) Chennai
c) Mumbai
d) New Delhi
e) Allahabad
11. Which one of the following is not a "Money Market Instrument"?
a) Treasury Bills
b) Commercial Paper
c) Equity Shares
d) Certificate of Deposit
e) All the above
12. The Banking Codes and Standards Board of India was registered on 18 February, 2006 under
which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above
13. Who is the chairman of Governing Council of BCSBI (Banking Codes and Standards Board of
India)?
a) K.C. Chakrabarty
b) A.C. Mahajan
c) HS Khurana
d) M.V. Nair
e) Salman Khurshid
14. Payment of cheques is governed by sections under_____:
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Negotiable Instruments Act 1881
d) Prevention of Money Laundering Act 2002
e) None of the above
15. The Headquarters of Bank of International settlement is located at:
a) New York
b) London
c) Washington
d) Paris
e) Basel (Switzerland)
16. The Act governing forex activities in India is:
a) RBI act
b) FERA
c) FEMA
d) SEBI
e) Finance Ministry
17. Sri Arun Shrivastava has taken over charge on 15.05.2015 as new CMD of ____ bank.
a) Union Bank of India
b) United Bank of India
c) Syndicate Bank
d) Andhra Bank
e) Allahabad Bank
18. RBI advised Banks that all new cards issued - debit and credit, domestic and International shall be EMV (Europay MasterCard Visa) chip and pin based cards with effect from:
a) 1st September 2015
b) 1st October 2015
c) 1st November 2015
d) 1st August 2015
e) 15th August 2015
19. Benefits in core banking system are:
a) Reliable centralized data recovery
b) Data warehousing and data mining technologies
c) Integrated customer centric services
d) Core infrastructure can be used for future expansion
e) All the above
20. NRI Deposits are classified under:
a) Capital a/c
b) Current a/c
c) Special Foreign Deposit Account
d) Either b or c
e) None of the Above
21. Which of the following can be called as intermediary in the Financial System?
a) Insurance companies
b) Banking companies
c) Mutual funds
d) All the above
e) None of the above
22. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
23. The ceiling for repatriation of funds from NRE/FCNR accounts is:
a) Rs.2 lakhs
b) Rs.5 lakhs
c) Rs.10 lakhs
d) No ceiling
e) None of the above
24. Some banks are financing big projects like construction of roads, bridges etc. Financing
such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above
25. Debentures are governed by____
a) Law of Contract
b) BR Act
c) Company Law
d) Banking Regulation Act
e) None of the above
26. The maturity period of CDs (Certificate of Deposit) issued by banks should not be less than ____ and not more than _____, from the date of issue.
a) 7 days, 6 months
b) 7 days, 1 year
c) 15 days, 6 months
d) 15 days, 1 year
e) 90 days, 180 days
27. The Main activity of the Financial Intelligence Unit India (FIU-IND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
28. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above
29. Crossing a cheque is a direction to the:
a) Drawer
b) Payee
c) Paying Banker
d) Clearing House
e) Collecting banker
30. The minimum amount for which a CD (Certificate of Deposit) can be issued is:
a) Rs. 1 lakh
b) Rs. 2 lakh
c) Rs. 5 lakh
d) Rs. 10 lakh
e) Rs. 20 lakh
31. A rate of exchange established between any two currencies on the basis of the respective quotation
of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above
32. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only
33. Kishore Biyani-led Future Group agreed to merge its retail business stock deal worth Rs. 750
crore to create one of the biggest supermarket chains with Rs. 15,000 crore turnover with which of the following organizations?
a) V-Mart Retail
b) Shoppers Stop
c) Bharti Retail
d) Koutons Retail India
e) None of the above
ANSWERS
1) b 2) b 3) b 4) b 5) d 6) d 7) d 8) b 9) e 10) a
11) c 12) b 13) b 14) c 15) e 16) c 17) c 18) a 19) e 20) a
21) d 22) c 23) d 24) a 25) c 26) b 27) b 28) c 29) c 30) a
31) a 32) c 33) c
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above
2. What is the purpose of reduction in Cash Reserve Ratio (CRR)?
a) Reduce Credit Flow
b) Enhance Credit Flow
c) Enhance availability of cash
d) Reduce Cash transactions
e) None of the above
3. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate
in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above
4. Who notifies Foreign Trade Policy?
a) RBI
b) DGFT
c) Govt. of India
d) ECGC
e) None of the above
5. Cash kept in the currency chest is owned by?
a) Currency Chest branch bank
b) State Bank of India
c) Central Government
d) Reserve Bank of India
e) None of the above
6. Expand the term LIBOR as used in financial banking sectors?
a) Local Indian Bank Offered Rate
b) London-India Bureau of Regulations
c) Liberal International Bank Official Ratio
d) London Inter Bank Offered Rate
e) None of the above
7. Which one of the following rates is NOT decided by the RBI?
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Income Tax Rates
e) Only a & b
8. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as:
a) Participation
b) Consortium
c) Syndication
d) Multiple Banking
e) All the above
9. The headquarters of International Monetary Fund is ___
a) Geneva
b) Paris
c) London
d) Manila
e) Washington
10. The first insurance company was started in India in 1818 at:
a) Kolkata
b) Chennai
c) Mumbai
d) New Delhi
e) Allahabad
11. Which one of the following is not a "Money Market Instrument"?
a) Treasury Bills
b) Commercial Paper
c) Equity Shares
d) Certificate of Deposit
e) All the above
12. The Banking Codes and Standards Board of India was registered on 18 February, 2006 under
which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above
13. Who is the chairman of Governing Council of BCSBI (Banking Codes and Standards Board of
India)?
a) K.C. Chakrabarty
b) A.C. Mahajan
c) HS Khurana
d) M.V. Nair
e) Salman Khurshid
14. Payment of cheques is governed by sections under_____:
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Negotiable Instruments Act 1881
d) Prevention of Money Laundering Act 2002
e) None of the above
15. The Headquarters of Bank of International settlement is located at:
a) New York
b) London
c) Washington
d) Paris
e) Basel (Switzerland)
16. The Act governing forex activities in India is:
a) RBI act
b) FERA
c) FEMA
d) SEBI
e) Finance Ministry
17. Sri Arun Shrivastava has taken over charge on 15.05.2015 as new CMD of ____ bank.
a) Union Bank of India
b) United Bank of India
c) Syndicate Bank
d) Andhra Bank
e) Allahabad Bank
18. RBI advised Banks that all new cards issued - debit and credit, domestic and International shall be EMV (Europay MasterCard Visa) chip and pin based cards with effect from:
a) 1st September 2015
b) 1st October 2015
c) 1st November 2015
d) 1st August 2015
e) 15th August 2015
19. Benefits in core banking system are:
a) Reliable centralized data recovery
b) Data warehousing and data mining technologies
c) Integrated customer centric services
d) Core infrastructure can be used for future expansion
e) All the above
20. NRI Deposits are classified under:
a) Capital a/c
b) Current a/c
c) Special Foreign Deposit Account
d) Either b or c
e) None of the Above
21. Which of the following can be called as intermediary in the Financial System?
a) Insurance companies
b) Banking companies
c) Mutual funds
d) All the above
e) None of the above
22. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
23. The ceiling for repatriation of funds from NRE/FCNR accounts is:
a) Rs.2 lakhs
b) Rs.5 lakhs
c) Rs.10 lakhs
d) No ceiling
e) None of the above
24. Some banks are financing big projects like construction of roads, bridges etc. Financing
such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above
25. Debentures are governed by____
a) Law of Contract
b) BR Act
c) Company Law
d) Banking Regulation Act
e) None of the above
26. The maturity period of CDs (Certificate of Deposit) issued by banks should not be less than ____ and not more than _____, from the date of issue.
a) 7 days, 6 months
b) 7 days, 1 year
c) 15 days, 6 months
d) 15 days, 1 year
e) 90 days, 180 days
27. The Main activity of the Financial Intelligence Unit India (FIU-IND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
28. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above
29. Crossing a cheque is a direction to the:
a) Drawer
b) Payee
c) Paying Banker
d) Clearing House
e) Collecting banker
30. The minimum amount for which a CD (Certificate of Deposit) can be issued is:
a) Rs. 1 lakh
b) Rs. 2 lakh
c) Rs. 5 lakh
d) Rs. 10 lakh
e) Rs. 20 lakh
31. A rate of exchange established between any two currencies on the basis of the respective quotation
of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above
32. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only
33. Kishore Biyani-led Future Group agreed to merge its retail business stock deal worth Rs. 750
crore to create one of the biggest supermarket chains with Rs. 15,000 crore turnover with which of the following organizations?
a) V-Mart Retail
b) Shoppers Stop
c) Bharti Retail
d) Koutons Retail India
e) None of the above
ANSWERS
1) b 2) b 3) b 4) b 5) d 6) d 7) d 8) b 9) e 10) a
11) c 12) b 13) b 14) c 15) e 16) c 17) c 18) a 19) e 20) a
21) d 22) c 23) d 24) a 25) c 26) b 27) b 28) c 29) c 30) a
31) a 32) c 33) c
