Your IIBF Sample Question Results

1. The Regional Rural Banks are sponsored by:

The Correct Answer is :
Any scheduled commercial bank.
2. A Regional Rural Bank has an authorized capital of:
The Correct Answer is :
Rs. 5 crore.
1This is due to the impact of certain tings and .......
3. Paid up share capital of Regional Rural Bank is contributed by:
0.5The Correct Answer is :
Central Government. State Government and the Sponsoring
Commercial
2This is due to the impact of certain tings and .......
4. Regional Rural Banks are classified as:
The Correct Answer is :
Scheduled Commercial Banks.
5. On the current account balances maintained by the Regional Rural Banks with the
Sponsoring Commercial Bank, interest is payable at the rate of:
The Correct Answer is :
Mutually agreed to.
6. Regional Rural banks are allowed to pay half percent additional interest on:
The Correct Answer is :
(a) and (c)
7. The regulatory Authority for Regional Rural Banks is:
The Correct Answer is :
RBI and NABARD.
6This is due to the impact of certain tings and .......
8. RRBs have been making contribution in the area of rural credit since reception still they
suffer from the following weaknesses:
The Correct Answer is :
All of the above.
9. Regional Rural Bank are empowered to transact the business of banking as defined under:
The Correct Answer is :
Section 5 (b) of Banking Regulation Act, 1949.
10. The co-operative credit system consists of:
The Correct Answer is :
All of the above.
11. The short term agricultural credit institutions are in three categories:
The Correct Answer is :
All of the above.
12. The long tern agricultural credit institutions consists of:
The Correct Answer is :
Both (a) and (b).
13. The working funds or primary agricultural societies is obtained from:
The Correct Answer is :
All of the above.
14. The Primary Agricultural Societies:
The Correct Answer is :
All o the above.
15. Central Co-operative Banks:
The Correct Answer is :
All of the above.
16. The primary function of a Central Co-operative Bank is:
The Correct Answer is :
to mobilise deposit from state government.
17. RBI was nationalised in:
The Correct Answer is :
1935
18. On 19th July 1969, 14 banks were nationalised, these banks had deposits of : more than:
The Correct Answer is :
Rs. 75 crore.
19. The state Co-operative Banks:
The Correct Answer is :
All of the above.
20. The first Land Mortgage Bank was established in:
The Correct Answer is :
1920 at Jhind in Panjub.
21. Land Mortgage Bank provides long term credit against the security of:

The Correct Answer is :

Mortgage of land generally for a period of 5 to 20 years.
22. The main objective of Land Development Bank is:
The Correct Answer is :
Providing investment credit for agriculture.
23. Land Development Banks provide long term credit for schemes of basic importance to
agriculture as:
The Correct Answer is :
All of the above.
24. Resources of Land Development Banks are raised by:
The Correct Answer is :
Borrowings comprising of interim accommodation deposits and
debenture.
25. Merchant Banking connotes:
The Correct Answer is :
Catering to the needs of corporate customers for raising finance.
26. The regulatory authority for the activities of Merchant Banker in India is:
The Correct Answer is :
Securities and Exchange Board of Delhi.
27. What are major functions undertaken by merchant bankers?
The Correct Answer is :
Market maker in capital market.
28. Which of the following is not the function of a merchant banker?
The Correct Answer is :
Collection of bills and cheques.
29. Merchant bankers which have networth of more than rupees one crore are allowed SEBI
to function as:
The Correct Answer is :
Both (a) and (b).
30. Merchant bankers with networth of Rs. 50 la and upto Rs. 1 crore are permitted to act as:
The Correct Answer is :
Both of the above.
31. Merchant bankers with networth of over Rs. 20 lac and upto Rs. 50 lac are allowed to act
as:
The Correct Answer is :
Advisors to issue of share/debentures.
32. The following constitute the code of conduct for merchant bankers as stipulatedby SEBI:
The Correct Answer is :
All of the above.
33. Which is the apex institution accredited with all matters concerning policy, planning and
operation in the field of credit for agriculture and other economic activities in rural area?
The Correct Answer is :
NABARD
34. The capital of NABARD is held by:
The Correct Answer is :
Reserve Bank of India and the Government of India in equal
proportion.
35. NABARD has been established on the recommendation of:
The Correct Answer is :
CRAFI CARD.
36. What are the major activities of NABARD?
The Correct Answer is :
It improves absorptive capacity of credit delivery system.
37. NABARD extends refinance to:
The Correct Answer is :
All of the above.
38. NABARD extends refinance to:
The Correct Answer is :
All of the above.
39. In the case of minor irrigation finance, NABARD provides refinance to the extent of:
The Correct Answer is :
95%
40. 100% refinance is available in the case of:
The Correct Answer is :
(a), (b) and (c).
41. A refinance to the extent of 90% under Automatic Refinance Facility is available for loans
and advances granted under:
The Correct Answer is :
All of the above.

42. For loans and advances granted by commercial banks to small, road and water transport
operations scheme (SRWTED), NABARD provides refinance under Automatic Refinance
Facility, subject to the conditions:
The Correct Answer is :
All of the above.
43. Under its investment credit (medium and long term) refinance scheme, refinance is
available to following activities in agriculture and allied activities:
The Correct Answer is :
All of the above.
44. NABARD's refinace is available to commercial banks under non-farm sectorfor investment
activities of:
The Correct Answer is :
All of the above.
45. The industrial Finance Corporation of India is the first institution established tobuild a
term financing institutional structural in India; it was established on:
The Correct Answer is :
July 1948.
46. The operations of IFCI comprise of:
The Correct Answer is :
All of these.
47. The Industrial Finance Corporation of India provides loans to:
The Correct Answer is :
Joint stock companies and co-operative societies engaged in the
manufacturing and processing of goods.
48. Which of the following institutions have been promoted by IFCI?
The Correct Answer is :
All of the above.
49. The IFCI is undertaking diversified activities, such as:
The Correct Answer is :
All of the above.
50. The Merchant Banking Division provides following services:
The Correct Answer is :
All of the above.
51. In 1993, a loss making nationalised bank was merged with the profit making Panjab
National Bank as a result total number of public sector bank is now:
The Correct Answer is :
27
52. The first public sector bank is issue capital to public is:
The Correct Answer is :
Oriental Bank of Commerce.
53. New private Sector Banks (NPSB) have been authorized to be set up under the new
liberalisation policy, the minimum paid up capital should be:
The Correct Answer is :
Rs. 200 crs.
54. The Banking Companies Act, 1949 was enacted to consolidate and amend the law relating
to banking companies w.e.f. 1st March 1966, the name of the Act has been changed as:
The Correct Answer is :
The Banking Regulation Act.
55. As per Sec.6 of the BR Act, a banking can undertake:
The Correct Answer is :
All of the above.
56. RBI has now permitted banks to carry on the business of Leasing. Hire Purchase and
Factoring directly by themselves, the leadings under each Category should not exceed:
The Correct Answer is :
10% of the total bank credit.
57. Under Sec 20 of BR Act, a bank is prohibited from granting any loan or advance to:
The Correct Answer is :
All of the above.
58. S. 17 of the BR Act lays down that banks shall create a reserve fund out of the balance of
profit of each year, also before the declaration of dividend a certain percentage of such profit
should be transferred to the reserve fund. This percentage is:
The Correct Answer is :
20% of such profit.
59. Without the approval of the RBI, a bank can not declare dividend in excess of:
The Correct Answer is :
15%
60. Sec. 20 of the BR Act prohibits a bank from granting any advance against the the security
of:

The Correct Answer is :

Its own shares.
61. A scheduled bank is one, the name of which is included in the second schedule of RBI Act,
1934. Such a bank should have a paid up Capital and Reserves of of an aggregate value of not
less than:
The Correct Answer is :
Rs. Five lakh.
62. The Land Development Banks grant term loan for Land Development etc. against the
mortgage of lands. In some states these banks are known as:
The Correct Answer is :
Land Mortgage Banks.
63. In 1992 RBI had appointed a committee to make recommendation to tone up the working
of the Urban Co-operative Banks. The name of the committee was:
The Correct Answer is :
Marathe Committee.
64. Regional Rural Banks were established pursuant to the recommendations of:
The Correct Answer is :
Narsimham Committee.
65. The working of RRBs was reviewed in 1986 and their continuance and greater
involvement of the sponsor bank in their management was recommended by:
The Correct Answer is :
Kelkar Committee.
66. Which is an apex body in the field of industrial finance in the country?
The Correct Answer is :
Industrial Development Bank of India.
67. The following institutions are eligible for refinance facilities from IDBI :
The Correct Answer is :
All of the above.
68. The objective and functions of IDBI include :
The Correct Answer is :
All o the above.
69. For availing refinance from IDBI :
The Correct Answer is :
Debt equity ratio should not be more than 2 : 1.
70. Bills rediscounting scheme of IDBI is available to commercial banks for obtaining
refinance in respect of :
The Correct Answer is :
Bills discounted which are drawn by the suppliers of machinery
when machinery is sold on deferred payment terms.
71. Under its Bills Rediscounting Scheme, IDBI refinances banks upto 100% of invoice value
subject to minimum amount of rediscounting of bills being :
The Correct Answer is :
Rs. 10,000.
72. The Small Industries Development Bank of India (SIDBI) was set up by the Govt, of India
in April 1990 as a wholly owned subsidiary of :
The Correct Answer is :
IDBI.
73. The objectives of setting up SIDBI are :
The Correct Answer is :
All of the above.
74. The main functions o SIDBI are :
The Correct Answer is :
All of the above.
75. The Discount and Finance House of India (DFHI) was established in April 1988 as per the
recommendations of :
The Correct Answer is :
Working Group on Money Market needed by Shri N. Vaghul.
76. The Share capital of DFHI is Rs. 200 crore, which has been subscribed by :
The Correct Answer is :
RBI, Public Sector Banks and Financial Institutions in the ratio of
51 : 33 : 16.
77. DFHI deals in :
The Correct Answer is :
All of the above.
78. Discount and Finance House of India Ltd. :
The Correct Answer is :
Both of the above.
79. DFHI has enabled :
The Correct Answer is :
None of the above.

80. Export-Import Bank of India was set up as a statutory corporation, whollyowned by Govt.
of India, in :
The Correct Answer is :
January 1981.
81. Export-Import Bank of India has been set up for the purpose of :
The Correct Answer is :
(a), (b) and (c).
82. EXIM Bank meets the needs of various group ; viz., :
The Correct Answer is :
All of these.
83. The following are the schemes of assistance extended by Exim Import Bank of India :
The Correct Answer is :
All of the above.
84. Which is the correct statement in respect of Exim Bank's Lending Programm for Export
Oriented Units?
The Correct Answer is :
All of the above.
85. Under Bulk Import Finance Programme (BIF) of Export-Import Bank of India :
The Correct Answer is :
All of the above.
86. Which is the correct statement about Bulk Import Programme ?
The Correct Answer is :
All of the above.
87. Export-Import Bank of India also operate the following schemes of assistance :
The Correct Answer is :
Re-lending facility to banks situated in foreign countries to enable
them to provide term finance to importers of Indian capital goods.
88. Exim bank under its foreign Currency Preshipment Credit (FCPC), Exim Bankgives short
term foreign currency finance to eligible exports for procurement ofinputs and to commercial
banks for on-lending to export customers; the terms of finance are :
The Correct Answer is :
All of the above.
89. Unit Trust of India (UTI) was set up under an Act of Parliament in 1964 or Statutory
Public Sector Investment Institution. The objectives of the institutions are :
The Correct Answer is :
All of the above.
90. The activities of Unit Trust of India, inter alia, include :
The Correct Answer is :
Short term and long term debt financing.
91. UTI extends the assistance to corporate sector by way of :
The Correct Answer is :
Cash credits.
92. Unit Trust of India has floated the followings
The Correct Answer is :
UTI Securities Exchange Ltd.
93. With the repeal UTI Act 1963, with effect from 01.02.2003, unit Trust of India has been
re-organised into :
The Correct Answer is :
None of the above.
94. Stock Holding Corporation of India Ltd. is promoted by :
The Correct Answer is :
All of these.
95. Stock Holding Corporation of India Ltd. provides :
The Correct Answer is :
Depository, post-trading and custodial services to institutional
investors and retail investors.
96. The primary activity of Stock Holding Corporation of India Ltd. is to :
The Correct Answer is :
Secure effective post trade services relation to transactions in
securities carried out by financial institutions.
97. Which is the authority for regulation insurance business in India ?
The Correct Answer is :
Reserve Bank of India
98. The Life Insurance business was nationalised in .. and Life Insurance Corporation of
India were set up.
The Correct Answer is :
1969.
99. The business of general insurance was nationalised in 1972 and was vested in the hand of
:

The Correct Answer is :

Both (a) and (b).
100. Life Insurance policies generally consists two elements
The Correct Answer is :
Both of the above.
101. Life Insurance policies are of generally :
The Correct Answer is :
Endowment Policy.
102. LIC is required to invest a certain percentage of its funds in Government andapproved
securities. The percentage is :
The Correct Answer is :
35%
103. National Housing Bank was established under National Housing Bank Act.1987 and
started functioning from 9th July 1988. on the recommendation madeby a High Level Group
headed by :
The Correct Answer is :
Dr. C. Rangarajan.
104. National Housing Bank is wholly owned by :
The Correct Answer is :
Reserve Bank of India.
105. The main objectives of National Housing Bank are :
The Correct Answer is :
To promote and develop specialized housing institutions for
mobilization of resources and extending finance for housing activities.
106. Which of the following institutions is the apex institutions in the matter of housing
finance ?
The Correct Answer is :
Housing & Urban Development Corporation.
107. National Housing Bank provides refinance to Scheduled Commercial Banks inrespect of
direct housing loans upto :
The Correct Answer is :
Rs. 100 lakh.
108. For availment of refinance from National Housing Bank, ScheduledBank has to satisfy
the following conditions :
The Correct Answer is :
The Scheduled Commercial Bank has earned profit for the last two
years.
109. National Housing Bank provides refinance assistance for direct/indirect loansalready
advanced by them for purchase/construction/repairs and up gradation ofhousing to :
The Correct Answer is :
All of the above.
110. A company is deemed as None-Banking Financial Company :
The Correct Answer is :
Both of the above.
111. As per the provisions of the Reserve Bank of India (Amendment) Act 1997,Non-Banking
Finance Company has :
The Correct Answer is :
Both of above.
112. As per the existing guidelines of Reserve Bank of India :
The Correct Answer is :
All of the above.
113. NBFCs consist of :
The Correct Answer is :
All of the above.
114. In January 1998, the Reserve Bank of India introduced new regulatory frame work for
safe guarding the interest of depositors. The guidelines comprises :
The Correct Answer is :
All of the above.
115. In regard to NBFCs' which statement is correct
The Correct Answer is :
All of the above.
116. Which of the following statements is correct ?
The Correct Answer is :
All of the above.
117. The word 'Bank' is derived from :
The Correct Answer is :
All of the above.
118. The joint stock Banking System started in the :
The Correct Answer is :
late 18th century/early 19th century.
119. The Bank of Bengal got its charter in :

The Correct Answer is :

1809.
120. The following bank was one of the presidency banks :
The Correct Answer is :
All of these.
121. The three presidency banks were merged in 1921 with the establishment of :
The Correct Answer is :
Imperial Bank of India.
122. The Reserve Bank of India was established in 1935 pursuant to the recommendation of :
1+ 0.25The Correct Answer is :
The Hilton Young Commission.
123. Reserve Bank of India was nationalised in :
The Correct Answer is :
1949.
124. The report of All India Rural Credit Survey Committee (Gorawala Committee)led to the
formation of :
The Correct Answer is :
State Bank of India.
125. Which Bank had taken over the Imperial Bank of India ?
The Correct Answer is :
State Bank of India.
126. Social control on banks was introduced in :
The Correct Answer is :
Feb. 1969.
127. Fourteen banks were nationalised on :
The Correct Answer is :
19th July 1969.
128. The Banking Companies Act, 1949 was enacted to consolidate and amend the law
relating to banking companies, w.e.f. 1st March 1966, the name of Act hasbeen changed as :
The Correct Answer is :
The Banking Regulation Act, 1949.
129. The Banking Regulation Act, 1949 was enacted with the objectives of :
The Correct Answer is :
Consolidating and amending the law relation to banking
companies.
130. The Banking Regulation Act, 1949 came into force on :
The Correct Answer is :
March 16th, 1949.
131. As per Section 6 of B.R. Act, 1949, a banking company is permitted to undertake :
The Correct Answer is :
All of the above.
132. Banking Regulation Act, 1949, does not, at all apply to :
The Correct Answer is :
Primary agricultural credit societies and co-operative land
mortgage banks.
133. Section 20 of the Banking Regulation Act, prohibits a bank from granting anyadvance
against the security of :
The Correct Answer is :
its own shares.
134. As per the provision of Section 20 of the BR Act, a bank is also prohibitedfrom granting
any loan or advance to :
The Correct Answer is :
All of the above.
135. Section 17 of the Banking Regulation Act, 1949, lays down that banks shallcreate a
reserve fund out of the balance of profit of each year, also before thedeclaration of dividend a
certain percentage of such profits should be transferredto the reserve fund. The percentage is
:
The Correct Answer is :
25% of such profit.
136. Section 16 of the Banking Regulation Act, 1949 prohibits a person :
The Correct Answer is :
to be appointed as director as director of more than one banking of
company.
137. A high level committee under the chairmanship of Shri M. Narsimham wasappointed in
August 1991, to :
The Correct Answer is :
None of the above.
138. Narismham Committee's main recommendations include :

The Correct Answer is :

All of the above
139. Which of the following is not a recommendation made by Narasimham Committtee on
the financial system?
The Correct Answer is :
None of the above.
140. The Narasimham Committee recommendation include:
The Correct Answer is :
All of the above.
141. In view of recommendations of Narasimham Committee, RBI has directed that:
The Correct Answer is :
Both of the above.
142. The Narsimham Committee recommended that
The Correct Answer is :
SLR should be reduced to 25% and CRP to 10% over a time period
so that the funds of banks are deployed by them in more remunerative loan assets.
143. The Narsimham Committee recommended that :
The Correct Answer is :
Both of the above.
144. No progress has been made in respect of the following recommendation of the
Narsimhan Committee :
The Correct Answer is :
All of the above.
145. As per the recommendations of Narsimhan Committee, the Govt. passed an Act during
August 1993 providing for :
The Correct Answer is :
creation of recovery tribunals for loan accounts with outstanding
balances of Rs. 10 lac or more.
146. The following capital market reforms have been initiated :
The Correct Answer is :
All of the above.
147. During Dec. 1995 RBI modified its branch licensing policy by putting following new
conditions :
The Correct Answer is :
All of the above.
148. P.S. banks signed the MOU with RBI for the first time with the objective of accountability
and performance as a result of Govt. insistence as a pre-condition for contribution Rs. 5,700
crore as additional capital during the year :
The Correct Answer is :
1993-94.
149. The targets set to be achieved by banks under MOU are :
The Correct Answer is :
Reduction in NPA, Expenses ; Avg, Cost of Deposits/Borrowings.
150. As per the MOU, in terms of the indicators, the Public Sector Banks have to spell out
policies in the following area :
The Correct Answer is :
All of the above.
151. The Banks are required to constitute high power liability management committees
comprising top executives determine suitable policies for :
The Correct Answer is :
All of the above.
152. The banks shall have to state their lending policies. These would include :
The Correct Answer is :
All of the above.
153. As per the MOU the banks will have to develop a plan to improve position against all
NPAs above :
The Correct Answer is :
Rs. 100 lac.
154. RBI has proposed to invoke penalty clauses against those nationlised banks which fail to
meet the targets commited in the MOU. These include :
The Correct Answer is :
All of the above.
155. The world over most of the supervisory authorities have adopted the following as the
basis of assessment of capital adequacy :
The Correct Answer is :
Risk Assets Ratio System.

156. The Committee on Banking Regulations and Srpervisory Practices which released the
agreed frame-work on international convergence of capital measures and capital standards in
July, 1988 is popularly known as :
The Correct Answer is :
Basic Committee.
157. The committee adopted weighted risk assets approach which assigns weights to :
The Correct Answer is :
Both of the above.
158. basic objective behind the committees work on capital convergence is that :
The Correct Answer is :
Both of the above.
159. The basic Committee has defined capital in two Tiers (Tier-I and Tier-II). Tier- capital is
known as :
The Correct Answer is :
Core capital.
160. Tier I capital contains elements that are :
The Correct Answer is :
less permanent or less readily available.
161. Tier-I Capital would mean :
The Correct Answer is :
All of the above.
162. Tier-II capital consists of :
The Correct Answer is :
All of the above.
163. As per RBI stipulations the risk weighted assets ratio of 8% was to be achieved as early
possible and in any case by :
The Correct Answer is :
All of the above.
164. RBI during July 1996 laid down strict prudential norms for those banks that failed to
attain the 8% capital adequacy target before 31st March 1996. One of the major conditions
as a measure of prudence is :
The Correct Answer is :
complete ban on fresh recruitment.
165. Banks that fail to fulfill the minimum requirements will :
The Correct Answer is :
Either (a) or (b).
166. What do you mean by the money market ?
The Correct Answer is :
Money market is a market for short terms financial assets
(generally upto the tenure of 12 months) that are close substitutes of money.
167. Money market consists of :
The Correct Answer is :
Call Money Market.
168. Who are the major players in the call money markets ?
The Correct Answer is :
Development Financial Institutions.
169. What is the limit for funds to be transacted in call money market ?
The Correct Answer is :
Over night basis.
170. Under Notice money market, funds are transacted for the period ranging ;
The Correct Answer is :
2 days to 14 days.
171. Treasury Bill means :
The Correct Answer is :
an instrument is used by the Central Government for short-term
borrowing.
172. Treasury Bill is :
The Correct Answer is :
Negotiable security.
173. Who issues treasury bills ?
The Correct Answer is :
Reserve Bank of India, as the agent of the Central Government.
174. The treasury bills are issued at a :
The Correct Answer is :
Discount.
175. Who can acquire the treasury bills ?
The Correct Answer is :
Scheduled Commercial Banks.
176. Which are the various instruments in the Indian Money Market ?
The Correct Answer is :
Treasury Bills.

177. Certificate of deposit refers to :

The Correct Answer is :
a negotiable money market instrument, issued in dematerialized
form or as a usance promissory note, for funds deposited at a bank or other eligible financial
institution for a specific time period.
178. How much is the minimum amount for issuance of certificate of deposit ?
The Correct Answer is :
No minimum stipulated answer.
179. Certificate of deposit can be subscribed by :
The Correct Answer is :
Trusts, funds, associations etc.
180. Certificate of deposit is issued for a period of :
The Correct Answer is :
15 days to 12 months.
181. In terms of present directives :
The Correct Answer is :
banks are free to issue Certificate of Deposits for any amount, as
per their requirement.
182. What is a Financial system?
The Correct Answer is :
Financial System means a mechanism in an economy to mobilize
the monetary resourcescapital from various surplus sectors of the economy and to allocate
and distribute the same to various needy sectors.
183. Financial system consists of two broad categories, normally:
The Correct Answer is :
Organised sector and unorganised sector.
184. Organised sector refers to:
The Correct Answer is :
Both (a) and (b).
185. Unorganised sector includes:
The Correct Answer is :
All of above.
186. Central Monetary Authority of India is:
The Correct Answer is :
Reserve Bank of India.
187. Commercial Banking System means:
The Correct Answer is :
Both (a) and (b)
188. At present, there are...... nationalised banks in India.
The Correct Answer is :
19
189. Share capital of nationalized banks is held by:
The Correct Answer is :
Central Government and public.
190. Which of the following banks is not wholly owned by the Govt. of India?
The Correct Answer is :
State Bank of India.
191. Which of the following is authorized to act as agent of Reserve Bank of India at the
place where there is no branch of Reserve Bank of India?
The Correct Answer is :
State Bank of India.
192. Banking is defined wide Section 5 (1) (b) of the Banking Regulation Act, 1949 as:
The Correct Answer is :
The accepting, for the purpose of lending or investment, of
deposits of money from the public, repayable on demand or otherwise and withdraw able by
cheque, drafts, order or otherwise.
193. RBI was established in 1935 pursuant to the recommendations of :
The Correct Answer is :
The Hilton Young Commission.
194. As per Section 12 of the Banking Regulation Act, 1949, the minimum ratiobetween
authorized, subscribed and paid up capital of a banking companyshould be :
The Correct Answer is :
4:2:1
195. A customer has a right to ask the bank to return him a paid instrument beforethe expiry
of period of such instruments under the provisions of :
The Correct Answer is :
Section 45 Z of Banking Regulation Act, 1949.
196. While returning a paid instrument to a customer in terms of Section 45 Z (1) ofthe
Banking Regulation Act, 1949, the bank must :

The Correct Answer is :

retain a true copy of all relevant parts of such instrument.
197. Section 21 of the Banking Regulation Act, 1949 empowers Reserve Bank of India to :
The Correct Answer is :
None of the above.
198. Section 14 A (1) of the Banking Regulation Act, 1949 prohibits a bankingcompany from :
The Correct Answer is :
creating floating charge on the undertaking or any property of the
company or any part therof.
199. Section 45 ZA of the Banking Regulation Act, 1949 relates to :
The Correct Answer is :
nomination in respect of bank deposits.
200. Section 26 of the Banking Regulation Act, 1949 requires every banking company to
submit an annual return to the Reserve Bank of India, in respectof :
The Correct Answer is :
all accounts in India which have not been operated upon for ten
years.
201. Except Section 34 A, the provision of the Banking Regulation Act, 1949 do not apply to :
The Correct Answer is :
Industrial Development Bank of India.
202. As per the provision of Section 29 of the Banking Regulation Act, every banking
company is required to prepare its final accounts; viz, Profit & Loss a/c and Balance Sheet in
the firms prescribed in :
The Correct Answer is :
the Third Scheduled to the Banking Regulation Act, 1949.
203. A bank incorporated in India cannot open an office (place of business) outsideIndia
without obtaining prior permission of :
The Correct Answer is :
Reserve Bank of India.
204. For setting up a new private sector bank :
The Correct Answer is :
All of the above.
205. As per guidelines of Reserve Bank of India, a new private sector bank :
The Correct Answer is :
All of the above.
206. A new private sector bank :
The Correct Answer is :
All of the above.
207. As per guidelines issued by RBI on 3rd January, 2001 :
The Correct Answer is :
Both (a) and (b).
208. RBI has given freedom to banks to :
The Correct Answer is :
All of the above.
209. The main thrust of the branch licensing policy is :
The Correct Answer is :
Both (a) and (b).
210. What is the minimum period before which Certificate of Deposit is not transferable ?
The Correct Answer is :
No such minimum period. Certificate of Deposit can be transferable
at any time before its maturity.
211. A commercial paper refers to :
The Correct Answer is :
an unsecured money market instrument issued in the form of
promissory note.
212. Commercial paper can be issued by ;
The Correct Answer is :
All of the above.
213. Commercial paper is :
The Correct Answer is :
unserved money market instrument.
214. Commercial paper is issued for a period of :
The Correct Answer is :
46 days.
215. Commercial paper is issued for a minimum amount of Rs. lakh and in multiples of Rs.
.. lakh to a single investor.

The Correct Answer is :

Rs. 5 lakh, Rs. 5 lakh.
216. For issuing commercial paper, the eligible participant has to obtain minimum credit
rating :
The Correct Answer is :
Any of (a) and (b).
217. Who can make investment in a commercial paper ?
The Correct Answer is :
All of the above.
218. Which of the following statements in regard to commercial paper is not INCORRECT ?
The Correct Answer is :
All of the above.
219. Effective from 10-10-2000, a company intends to issue commercial paper must satisfy
the following conditions(s) :
The Correct Answer is :
All of the above.
220. The Commercial Banking System in India comprises of :
1+ 0.25The Correct Answer is :
Scheduled and Non-schedule Banks.
221. Scheduled bank refers to a bank :
The Correct Answer is :
which, is included in the second schedule to the Reserve Bank of
India Act. 1934.
222. Before a bank is included in the Second Schedule of the RBI Act, it must fulfil the
following condition(s) :
The Correct Answer is :
All of the above.
223. Financial System plays an important role in the growth and development of economy in
the following manners :
The Correct Answer is :
All of the above.
224. What are the two important functions of Banks ?
The Correct Answer is :
(a) and (b).
225. Social Control on banks was introduced in the year :
The Correct Answer is :
1967.
226. Banks are nationalised first time on :
The Correct Answer is :
19th July 1969.
227. Which of the following were considered to be compelling reasons for Bank
Nationalisation ?
The Correct Answer is :
All of the above.
228. Enumerate the main functions of a banker as per Banking Regulation Act, 1949 :
The Correct Answer is :
All of these.
229. The Banking Regulation Act, 1949, consists of :
The Correct Answer is :
56 sections.
230. The Banking Regulation Act, 1949, applies to the following categories of banks :
The Correct Answer is :
All of these.
231. The commercial banks have recently introduced the following activities :
The Correct Answer is :
All of these.
232. For opening new branches, banks need to the complied with the following in conditions :
The Correct Answer is :
All of the above.
233. The Banking Regulation Act, 1949, does not apply to :
The Correct Answer is :
Primary Agricultural Credit Societies and Co-operative Land
Mortgage Banks.
234. A Bank incorporated in India cannot open an office outside India without obtaining prior
approval of :
The Correct Answer is :
Reserve Bank of India.
235. The provision of Section 21 of the Banking Regulation Act, 199, empowers Reserve Bank
of India to :

The Correct Answer is :

control advance by banking companies.
236. Section 26 of the Banking Regulation Act, 1949, requires every banking company of
submit an annual return to the Reserve Bank of India, in respect of :
The Correct Answer is :
all account in India which have not been operated upon for ten
years and above.
237. As per the provision of Section 12 of the Banking Regulation Act,1949, the minimum
ratio between authorized, subscribed and paid up capital of a banking company should be
The Correct Answer is :
4 : 2 : 1.
238. Under the provision of section 35 (b) (ii) of the Banking Regulation Act, 1949, inspection
of branches of Indian bank situated abroad is to be carried out by :
The Correct Answer is :
Reserve Bank of India.
239. Section 29 of the Banking Regulation Act, 1949, stipulates that every banking company
has to prepare its final account i.e., Profit and Loss Account and Balance Sheet, in the forms
prescribed in :
The Correct Answer is :
the third schedule to the Banking Regulation Act, 1949.
240. In terms of section 17 of the Banking Regulation Act, 199, every banking company is
required to transfer each year to a reserve fund a sum equivalent to not less than :
The Correct Answer is :
20 percent of profit before dividends.
241. Reserve Bank of India is :
The Correct Answer is :
an expansion wings of Ministry of finance, Govt. of India.
242. Authorisesd, subscribed and paid up share capital of Reserve Bank of India is :
The Correct Answer is :
None of these.
243. Which bank is the banker to the central government :
The Correct Answer is :
All of these.
244. The term 'Ways and Means' advances refer to :
The Correct Answer is :
lending made under PMRY scheme.
245. The Reserve Bank of India is also called the lender o the last resort to scheduled
commercial banks because :
The Correct Answer is :
they are able to get facilities from private sector banks.
246. RBI has given freedom to banks to :
The Correct Answer is :
All of the above.
247. In term of Section 19 of the RBI Act, 1934, the RBI has been prohibited from :
The Correct Answer is :
All of the above.
248. Introduction of rating methodology for banks was introduced by RBI on the lines of :
The Correct Answer is :
CMA.
249. Scheduled banks are required to keep cash reserves with Reserve Bank of India, in
terms of
The Correct Answer is :
All of the above.
250. The cash reserve requirements for non-scheduled banks are laid down in :
The Correct Answer is :
None of these.
251. Cash Reserve Ratio is maintained in the form of :
The Correct Answer is :
Balance with State Bank of India.
252. RBI is empowered to prescribe Cash Reserve Ratio ranging between :
The Correct Answer is :
None of the above.
253. Statutory Liquidity Ratio means :
The Correct Answer is :
The maximum percentage of demand and time liabilities upto
which bank can extend the advances.
254. The reduction in the Statutory Liquidity Ratio by the Reserve Bank of India
The Correct Answer is :
will not effect the liquidity position.

255. Under the powers derived from Section 20,21 and 21A of the Reserve Bank of India Act,
1934 :
The Correct Answer is :
All of the above.
256. In periods of boom, which leads to economic instability Reserve Bank resorts to :
The Correct Answer is :
sale first class securities in its precession in the market to reduces
the supply of money as a measure of open market operations.
257. The public debt offices function under the control of :
The Correct Answer is :
Public Debt Ministry.
258. Which of the following statements are correct ?
The Correct Answer is :
All of the above.
259. A new department : viz, Department of Supervision has been set up by Reserve Bank of
India w.e.f. 22.12.1993. The above department has taken over :
The Correct Answer is :
the work relating to the supervision of commercial banks from the
Department of Banking Operations and Development.
260. RBI has permitted banks to open, without its prior approval, specialised branches per
center each in the category of :
The Correct Answer is :
All of these.
261. Which of the following guidelines have been issued by Reserve Bank of India based on
the recommendation of Narsimham Committee in regard to branch licensing policy ?
The Correct Answer is :
Banks may close down branches other than in rural areas as well
as to swap unremunerative branches or those in remote areas.
262. Demand liabilities mean :
The Correct Answer is :
All of the above.
263. As per Section 5 (f) of the Banking Regulation Act, 1949, time liabilities mean :
The Correct Answer is :
None of the above.
264. Which is the authority in India for effecting changes in the Cash Reserve Ratio and
Statutory Liquidity Ratio :
The Correct Answer is :
Indian Banks Association.
265. Bank rate means :
The Correct Answer is :
None of the above.
266. To restrict expansion of credit, the Reserve Bank :
The Correct Answer is :
None of these.
267. When Reserve Bank intends to increase credit by the banking system, it :
The Correct Answer is :
reduces the bank rate.
268. Bank rate policy, open market operations, variable reserve requirements and statutory
liquidity requirements as measure of credit control are classified as :
The Correct Answer is :
Both (a) and (b).
269. Which of the following fall under the qualitative method of credit control adopted by
Reserve Bank of India ?
The Correct Answer is :
All of these.
270. The term 'Moral Suasion' refers to :
1+ 0.25The Correct Answer is :
None of the above.
271. 'Currency of India' refers to :
The Correct Answer is :
one rupee notes only.
272. Which of the following is the sole authority for issuance of currency in India ?
The Correct Answer is :
None of these.
273. The note issue system in India is based on :
The Correct Answer is :
Gold Deposit System.
274. One rupee note bears the signature of :
The Correct Answer is :
Vice-President of India.

275. Banks notes are issued under the signature of :

The Correct Answer is :
Any authorised official of RBI.
276. The currency notes issued by RBI have a cent percent cover in :
The Correct Answer is :
trustee securities.
277. The approved assets against which currency notes are issued by RBI, comprise of :
The Correct Answer is :
bills of exchange and promissory notes payable in India which are
eligible for purchase by RBI.
278. The Board for Financial Supervision has been constituted by the Reserve Bank of India
under the Reserve Bank of India (Board for Financial Supervision) Regulation, 1994 on 16th
November 1994. The main objective of Board is :
The Correct Answer is :
None of the above.
279. The Board for Financial Supervision has a term of :
The Correct Answer is :
Ten year.
280. The Board will exercise integrated supervision over :
The Correct Answer is :
All of the above.
281. Retail Banking refers to :
The Correct Answer is :
provision of the basic services of a bank to the individuals.
282. Which of the following would fall under the category of retail banking ?
The Correct Answer is :
All of the above.
283. Which of the following constitute a point of Retail Banking
The Correct Answer is :
Bank branches in college campuses.
284. Retail loans consist of :
The Correct Answer is :
Both of the above.
285. The various channels for delivery of retail banking are :
The Correct Answer is :
All of these.
286. Which of the followings does not come in the purview of Retail Banking ?
The Correct Answer is :
Loan syndicate.
287. Whole Sale Banking refers to the borrowing and lending funds of :
The Correct Answer is :
Large domestic and international companies.
288. Which of the following would not fall under the category of whole sale banking ?
The Correct Answer is :
(a) and (b).
289. As on 31.03.04, the retail portfolio constitutes of . Percent of total outstanding
advances, in the Indian context.
The Correct Answer is :
21.5.
290. Home loans are granted :
The Correct Answer is :
All of the above.
291. In house loans, The prime security for the loan is generally :
The Correct Answer is :
house property for which loan is granted.
292. The quantum of loan under Home loan is decided on the basis of :
The Correct Answer is :
All of the above.
293. Which of the following is correct statement in respect of debit cards ?
The Correct Answer is :
(a) and (b) above.
294. Sources of funds which do not appear in the balance sheet and consequently not owned
by the entity are known as :
The Correct Answer is :
off balance sheet business.
295. Which of the following is an example of off balance sheet finance ?
The Correct Answer is :
Financial loans.
296. Which is the correct statement in regard to off balance sheet finance ?
The Correct Answer is :
As there is no capital outlay, there is no reduction in working
control.

297. What is International Banking ?

The Correct Answer is :
Providing of variety of financial services to the customers who are
living outside their home country.
298. Insurance Business can be divided into :
The Correct Answer is :
(a) and (b).
299. Insurance Business can be divided into :
The Correct Answer is :
(a) and (b).
300. The main objectives of a Life Insurance Company are :
The Correct Answer is :
All of the above.
301. The main objectives of a General Insurance Company are :
The Correct Answer is :
All of the above.
302. Which of the following are operating as life insurers in India
The Correct Answer is :
All of the above.
303. Which of the following statements are correct in respect of insurance business in India ?
The Correct Answer is :
All of the above.
304. Insurance business in India is regulated by :
The Correct Answer is :
Insurance Regulation and Development Authority (IRDA).
305. Insurance Regulatory and Development Auhority.
The Correct Answer is :
is a NGO.
306. Insurance business in India is primarily dealt by following legislation :
The Correct Answer is :
(a) and (c).
307. Which of the following form the part of general insurance business :
The Correct Answer is :
Marine Insurance.
308. Which of the followings are private sector life insurer in India ?
The Correct Answer is :
(b) and (c).
309. What are the functions of IRDA ?
The Correct Answer is :
IRDA has duty to regulate, promise and ensure orderly growth of
the insurance and re-insurance business in India.
310. Bancassurance means :
The Correct Answer is :
Distribution of Insurance policies both life and non-life, by banks
as corporate agents through their branches.
311. Banks are permitted to set up first venture companies for undertaking insurance
business with risk participation, subject to :
The Correct Answer is :
All of the above.
312. For acting as composite corporate agent, banks are required to obtain prior approval
from :
The Correct Answer is :
IRDA.
313. Bancassurance helps the bank to build synergies between insurance business and
distribution of insurance products, because :
The Correct Answer is :
All of the above.
314. Capital Market refers to all the facilities and institutional arrangements for :
The Correct Answer is :
All of these.
315. Capital market is described as market for :
The Correct Answer is :
medium and long term funds.
316. Which of the following are the suppliers of funs in capital market ?
The Correct Answer is :
Insurance companies.
317. Which of the following are the takers of funds in capital market ?
The Correct Answer is :
(a) and (b).
318. Capital market can be divided into ?
The Correct Answer is :
Both (a) and (b).

319. Which of the following are the role functions of capital market ?
The Correct Answer is :
All of the above.
320. The instrument of capital market are :
The Correct Answer is :
All of the above.
321. The term 'Mutual Fund' refers to :
The Correct Answer is :
The business of acquisition, holding, management, trading or
disposal of securities, participation business and unit trust schemes.
322. The main functions of mutual funds are :
The Correct Answer is :
All of the above.
323. An open ended fund means :
The Correct Answer is :
All of the above.
324. A close-ended fund means :
The Correct Answer is :
All of the above.
325. Which of the following is the first commercial bank who had launch a mutual fund ?
The Correct Answer is :
State Bank of India.
326. SEBI has issued guidelines in respect of mutual fund. The same of the guidelines are :
The Correct Answer is :
All of the above.
327. On 1st February 1964, India's first mutual fund came into existence as a statutory
corporation, is :
The Correct Answer is :
Unit Trust of India.
328. Which of the following statements about mutual funds is correct ?
The Correct Answer is :
All of the above.
329. Mutual funds are vehicles for collective investment that pool the savings of many
investors for :
The Correct Answer is :
All of the above.
330. A mutual fund collects money from the members and invests them in diversified
portfolio of financial assets with a view to :
The Correct Answer is :
All of the above.
331. In India Unit Trust of India (UTI) came into existence in 1964 and pioneered the
concept of 'Units'. However, the first Mutual Fund Scheme was launched in 1986 and is
known as :
The Correct Answer is :
Master Share.
332. Which one of the following is the reason for the success of mutual fund ?
The Correct Answer is :
All of the above.
333. The individual investor can claim tax exception for both principal amount and income
from the these units under :
The Correct Answer is :
None of the above.
334. Which of the following statements is correct ?
The Correct Answer is :
All of the above.
335. For launching any new scheme by any MF :
The Correct Answer is :
prior permission of RBI is required.
336. Mutual fund invests funds collected under the schemes in various capital market
instrument except :
The Correct Answer is :
Underwriting, bill discounting, portfolio/fund management
activities.
337. Mutual fund should not undertake :
The Correct Answer is :
All of the above.
338. Mutual Fund Schemes have been allowed to mention an indiative return for schemes for
fixed income securities. This will be subject to the following :
The Correct Answer is :
All of the above.

339. Net Asset value (NAV) of a scheme is a number which basically represents the value to
Rs. Per fund units as on a particular date of the assets of the fundless liabilities and
outstanding expenses. It is represented as :
The Correct Answer is :
[Asset of the Fund]-[Liabilities + Outstanding Expenses]./
[Number of Fund units].
340. An offshare fund is :
The Correct Answer is :
a fund established outside the country.
341. The term 'load factor' refers to :
The Correct Answer is :
a charge levied by the mutual fund from the unit holders at the
time of entry or exit from the mutual fund.
342. Leasing is a contract between lessor and lessee :
The Correct Answer is :
All of the above.
343. How many types of lease are in practice ?
The Correct Answer is :
Both (a) and (b).
344. The advantage of leasing are :
The Correct Answer is :
Leasing allows the lessee, the use of the asset acquired at today's
cost by making payment in future out of future earnings.
345. In a lease finance both lessor and lessee are entitles for tax benefits because :
The Correct Answer is :
Both of the above.
346. A financial lease is spread into :
The Correct Answer is :
Both of the above.
347. The features of operating lease are :
The Correct Answer is :
All of the above.
348. Banks are permitted to undertake financing of equipment leasing, hire purchase and
factoring :
The Correct Answer is :
All of the above.
349. Under lease finance business
The Correct Answer is :
Banks should follow prudential accounting standards.
350. In the case of Financing of equipment leasing, hire-purchase and factoring :
The Correct Answer is :
All of the above.
351. SEBI (Securities & Exchange Board of India) was constituted by Govt. of India in 1988
and was accorded statutory power under :
The Correct Answer is :
SEBI Act, 1992.
352. The following are main objectives of the SEBI :
The Correct Answer is :
All of the above.
353. Which of the following are the actions introduced by the SEBI ?
The Correct Answer is :
All of the above.
354. Which of the following actions have been taken by SEBI ?
The Correct Answer is :
All of the above.
355. The management of SEBI consists of :
The Correct Answer is :
Chairman and five members.
356. Which of the following statements is correct ?
The Correct Answer is :
All of the above.
357. The form 'AMFI' stands for :
The Correct Answer is :
Association of Mutual Funds of India.
358. AMFI (Association of Mutual Funds in India) :
The Correct Answer is :
All of the above.
359. AMFI was established with following objectives :
The Correct Answer is :
None of the above.
360. Name various committees set up by AMFI in order to achieves its objectives :

The Correct Answer is :

All of the above.
361. Pick the correct statement from the following statements in respect of entry of banks
into insurance sector :
The Correct Answer is :
(a), (b) and (c).
362. Factoring is :
The Correct Answer is :
a means of financing traders an manufacturers by taking over their
receivables.
363. The following benefits are offered by factoring services :
The Correct Answer is :
All of the above.
364. While undertaking factoring services, banks should :
The Correct Answer is :
All of the above.
365. RBI has directed banks that :
The Correct Answer is :
All of the above.
366. Factoring was introduced in India during 1991 on the recommendations of :
The Correct Answer is :
Kalyan Sundarama Committee.
367. The advantages of factoring are :
The Correct Answer is :
All of the above.
368. What is securitisation ?
The Correct Answer is :
it is process under which number of long term loans are packed to
gather and then distributed or liquidated to various investors having liquid funds, in the form
of coupons, Pass through certificates (PTCs) or through special purpose vehicles (i.e., SPVs)
of the organisation with the provision that the inflow of cash through recoveries will be
distributed pro-rata to coupon lenders.
369. Securitisation against moveable assets is known as :
The Correct Answer is :
Securitisation backed by assets.
370. Securitisation backed by mortgage relates to :
The Correct Answer is :
Immoveable assets.
371. Choose the correct statement.
The Correct Answer is :
All of the above.
372. In India, securitisation companies and asset reconstruction companies are regulated by
the provisions of :
The Correct Answer is :
The Banking Regulation Act. 1949.
373. A securitisation or a reconstruction company has to obtain a certification of reistration,
before commencement of business, from :
The Correct Answer is :
Reserve Bank of India.
374. A securitisation company or a reconstruction company :
The Correct Answer is :
All of the above.