Banking Awareness

Banking Awareness Question Bank v-3
1. ___________ promoted Securities Trading Corporation of India Limited (STCI) jointly

with the Public sector banks ?
RBI
SBI
UTI
LIC
SEBI
2. A Credit Guarantee Trust Fund has been set up for guaranteeing Collateral Free
Facilities by lending institutions to Small Scale Industries This fund is being managed by
which of the following institutions ?
a. RBI
b. NABARD
c. SIDBI
d. IDBI
e. SBI
3. ______ tied up with travel related financial services company Thomas Cook to offer
online customers a recurring deposit that helps them save toward an inflation proof
holiday. ?
a. RBI
b. HDFC
c. AXIS
d. Yes Bank
e. State Bank of India
4. Which of the following charged by the bank in the customers account is not eligible
for Service Tax ?
a . All those given as options
b. interest on Loans
c. Locker Rent
d. Credit Card payment
e. Merchant Banking Fees
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5. A fund set up for the purpose of investing in startup businesses that is perceived to
have excellent growth prospects but do not have access tocapital markets is known as
______
a. Asset Reconstruction Fund
b. Asset Management Fund
c. Equity Fund
d. Mutual Fund
e. Venture Capital Fund
6. A person who acts as an Agent for a client in the Equity Market and collects his
commission for the services provided is known as _________
a. Investment Advisor
b. Communicator
c. Financial Advisor
d. Share Broker
e. Investo
7. Government approved financial restructuring of ___________, including loan waiver of

over 9000 crores and transfer of 56 acres of Ash Dyke land of Barauni unit to Bihar State
Power Generation Company Limited (BSPGCL) to settle dues of _______ for faster revival
of Barauni Unit
a. Hindustan Fertilizers Corporation Limited
b. SAIL
c. BHEL
d.BEL
e. GAIL
8.. The concept of Preapproved loans from banks is popular in India in the______
a. Trade finance segment
b. Industrial credit segment
c. Agricultural credit segment
d. Home loan segment
e. Export credit segment
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9. According to International Energy Agency (IEA) which country is to be the largest

contributor of energy to the global demand by year 2040?
a. China
b. Japan
c. USA
d. India
e. South Africa
10. A small enterprise is an enterprise where the investment in plant and machinery is
more than Rs. 25 lakh but does not exceed _______ If an enterprise engaged in the
manufacture or production, processing or preservation of goods.
A .Rs. 5 crore
b. Rs. 3 crore
c. Rs. 2 crore
d. Rs. 15 crore
e. Rs. 10 crore
11. What are "Z Group Shares " :
(a) These are shares of companies which comply with the stock Exchange Listing Agreement
fully
(b) These are shares of companies which do not comply with the stock Exchange Listing
Agreement fully
(c) A special category of shares reserved for high worth individuals
(d) None of the above
12. When does a person become insolvent :

(a) When he is left with no property of his own
(b) When he is declared an insolvent by the Court
(c) When he is terminated from a job he was holding
(d) When he declares himself to be an insolvent
13. Which Committee had recommended the introduction of Electronic Funds Transfer (
EFT) System :
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(a) C. Rangarajan Committee
(b) Narasimham Committee
(c) Y.V Reddy Committee
(d) K.S. Shere Committee
14. Who is a " Proxy" in relation to Companies :

(a) A person who acts on behalf of another in a company's meeting
(b) A Proxy has no right to speak at a meeting
(c) Both A and B
15. 'Know Your Customer Guidelines' issued by RBI helps in :
(a) customer identification while opening accounts
(b) adopting anti-money laundering measures
(c) Identifying suspicious transaction
(d) All of these
16. Customer Day in the bank is on and customers are allowed to meet the top officials of
the bank on this day in every month :
(a) 5th
(b) 10th
(c) 15th
(d) 30th
17. Expand " ROCE" :
(a) Return Over Capital Expenditure
(b) Return Over Capital Employed
(c) Return On Capital Employed
(d) None of these
18. For a foreigner temporarily residing in India, type of account to be opened is :
(a) Resident Account
(b) NRO
(c) NRE
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(d) None of these
19. Generally banks borrow in Call Money Market for :

(a) maintaining Cash Reserve Ratio ( CRR)
(b) Investment with central Government
(c) Credit for infrastructure
(d) none of the above
20. Mutual Fund Scheme that operates continuously without any limit entry for
subscription and redemptions is :
(a)Fixed Income
(b) Specific Fund
(c) Close Ended
(d) Open Ended
21. The components of Tier 1 capital of a banking company include :

(a) capital reserve representing surplus arising out of sales proceeds of assets
(b) paid-up capital, statutory reserves and other disclosed free reserves ,if any
(c) Both A and B
22. Certificates of Deposits is :
(a) a certificates issued by IDBI about the financial soundness of a company to accept deposits
from public
(b) a certificate issued by a bank to income- tax authorities stating that a particular amount was
paid as interest to the depositor during the relevant financial year
(c) a certificates issued by Reserve Bank of India,stating the amount held by a bank
(d) a negotiable money market instrument and issued in dematerialised form or as a
Usance promissory Note, for funds deposited at a bank or other eligible financial
institution for a specified time period.
23. Which was the first committee recommended for establishment of Special Recovery
Tribunals for books and Financial Institution :
(a) Tiwari Committee
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(b) Ojha Committee
(c) Narasimham Committee
(d) Rangarajan committee
24. Which of the following committees also recommended the set up of Debt Recovery
Tribunals :
(a) Committee on Financial Sector Reforms
(b) Committee on Customer Tribunals
(c) Committee on RRBs
25. Securitization is :
(a) non - performing loans are acquired from banks and financial institutions at a discounted
value and security receipts issued to them so that these loans are removed from their balance
sheet enabling them to reduce the provision in respect of such loans and improve profitability.
(b) converting the illiquid loans of banks and financial institutions by securitization companies
into tradable securities ,after they are acquired and sold to the investors .
(c) A process of acuquisition of non -performing loans from banks nu a Securitization company
and convert them into tradable securities and sold to the investors.
(d) all of the above
26. The expansion of BIFR,in the context of the Indian Industry is :

(a) Board fro Industrial and Financial Reconstruction
(b) Bureau for Industrial and Financial Reconstruction
(c) Board for Investment and financial Reconstruction
(d) Bureau fro Investment and Financial Reconstruction
27. Under section [S.2(h)] of the RTI Act, 2005 "Other Public authority " means:
(a) by notification issued or by order of the appropriate government
(b) all bodies owned , controlled or subsequently financed by the government
(c) all non government organization substantially financed by the Government
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28. Under the corporate Debt Restructuring (CDR) mechanism, loan assets of banks have
been categorized which on of the following statement is not correct.
(a) Assets belonging to standard and sub- Standard category come under Category I
(b) asset belonging to Doubtful category come under Category 2
(c) Assets belonging to Doubtful and loss categories come under Category 2
(d) Out of total Loan Assets,90 per cent is Standard and sub-standard and Doubtful is 10 per
cent this lot comes under Category I.
29. Under which of the following ,methods of depreciation , amount of depreciation
varies every year:
(a) Written Down Value Method
(b) Straight Line method
(c) Amount of deprection does not vary on year to year basis
30. What is "Stagflation ':

(a) inflation with growth
(b) Deflation with growth
(c) inflation after deflation
(d) inflation with depression
31. What is true about 'white Card ":
(a) It is related to companies producing milk products
(b) It does not carry on its face, the brand of the issuer
(c) It is meant to covert money into the economy
32. when we discuss Negotiated Dealing System. it denotes :

(a) Setllement of security dealing
(b) Trading in stock Markets
(c) Trading in Government Securities
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33. There is a joint account in the names of A and B , to be operated by both of them
jointly . There is a debit balance of Rs 23,100 when the bank receives a notice of A's
death :
(a) the amount can be recovered from B only
(b) the amount cam be recovered from the estate of the deceased A only
(c) the amount can be recovered from B and/or the estate of the decreased A
34. Mohan, who will be 18 next December , approaches the bank for a loan of Rs 1,00,000
to be repaid out of the property that will vest in him on his attaining majority :
(a) the loan may be granted provided the value of the property in question is sufficient
(b) the bank's head office will approached for necessary guidance
(c) the loan may be granted provided, in addition to the security of the property in
question a third party's guarantee is arranged
(d) a minor's agreement being void ab -intitio the proposal in question will not be entertained.
35. A cheque which was returned with the remarks: " Effects drawn against not yet
cleared .Please present against " . has been represented and there are no funds in the
account to pay it :
(a) the cheque should be paid as the banker is under obigation to it
(b) the cheque should be paid and the customer asked to put the account in order
(c) the cheque should be returned with the answer : 'Refer to drawer "
36. Many banks have adopted/;launched 'Core Banking Solution". Core Banking Solution
is :
(a) a marketing strategy adopted by the banks
(b) A new type of ATM useful for rural population
(c) A delivery channel for quick and fast delivery
(d) A new product launched to hep senior citizens only as they are not able to visit
branches/ATMs frequently.
37. "Order Nist" is :

(a) an order to freeze or stop all transactions of the customer in his account
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(b) also a direction to the banker to explain why the funds in the customer's account so
freezed should not be used fro payment of the Judgment debt
(c) Both A and B
38. Bill of lading is a :

(a) Negotiable Instrument
(b) Non- negotiable Instrument
(c) Quasi-Negotiable Instrument
39. If a Demand Promissory Note is obtained unstamped :
(a) penalty of 10 times the deficiency has to be paid and the proper stamp has to be affixed
(b) The Note has to be presentable to the Collector/District Commissioner for adjudication
(c) unstamped/under -stamped DP Note can never be rectified
(d) the note has to be properly stamped at the earliest
40. Foreign citizen of Indian origin is :
(a) person of Indian Origin
(b) Non relating Indian
(c) Ordinary Non Resident
(d) foreign National
41. Out of the following who is not customer of the bank :

(a) Term deposit account holder
(b) "Cash Credit on hypothecation" account holder
(c) outstation party from whom the bank has received a bill of exchange for collection
(d) local party from whom the bank has received a bill of exchange for collection
42. The Statutory definition of the term 'banking " is given in :
(a) The Negotiable Instruments Act, 1881
(b) The Reserve Bank of India Act, 1934
(c) The Companies Act. 1956
(d) The banking Regulation Act, 1949
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43. Regional Rural Banks were established in the year :

(a) 1968
(b) 1970
(c) 1975
(d)1977
44. Which of the following terms is not used in the world of economics/finance :
(a) Sinking Fund
(b) Third World
(c) Open Door Policy
(d) Devaluation
45. Which of the following is the name of the organization created specifically to develop
small scale industrial sector in our country :
(a) NABARD
(b) SEBI
(c) SIDBI
(d) AMFI
46. The credit-deposit ratio of ...... is highest in the banking sector :
(a) Foreign Banks
(b) Regional Rural Bank
(c) Public Sector Bank
(d) private sector Bank
47. Committee on decontrolling the prices of petrol and diesel was headed by :
(a) kelkar Vijai
(b) Rangrajan
(c) Abhijit Sen
(d) Kirit S. Parekh
48. Kisan credit Cartds ( KCC) Scheme was formulated in the year :
(a) 1996
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(b) 1997
(c) 1998
(d) 1999
49. In the case of advance against fixed deposit receipts issued by Banks :
(a) the deposit receipts are assigned to the bank
(b) the deposit receipts are hypothecated to the bank
(c) the deposit receipts are mortgaged to the bank
(d) a lien is created in favour of the bank on the deposit receipts
50. The essential features of securitisation are :

(a) Acquisition of financial Assets by a securitisation or Reconstruction company
(b) The Assets may be NPA or standard
(c) On sale the asset go out of the Books of the Originator
(d) All of the above
51. A Bank may prefer to invest in corporate Bonds because :
(a) Bond is more liquid Asset
(b) Bond has an easy exit
(c)Bond can be sold at discount
52. The advantages of securitisation for a Bank is :

(a) It provides liquidity to the issuing Bank
(b) The Bank capital does not get blocked
(c) Securitisation proceeds can be used for fresh lending
53. Which of the following is true :

(a) Surrplus funds with the banks can be invested in pass through certificates
(b) This will be indirect expansion of credit portfolio
(c) Both A and B
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54. The process of credit Derivative involves :
(a) The protection seller guarantees payment of principal and interest or both of the asset
owned by the Protection Buyer in case of credit default
(b) The Protection Buyer pays a premium to the Protection Seller
(c) Both A and B
55. Which one of the following statements is incorrect :
(a) Advances against gold ornaments are exempt from NPA norms
(b) Classification of NPA should be done borrower wise and not facility wise
(c) An NPA need not go through the various stages of classification
(d) The existance of security should be ignored if the value is less than 10 per cent of
the outstanding in the borrowal account
56. Specially developed Economic Zones in India where some of the economic laws
and restrictions of the land are relaxed with the purpose of giving incentives to
investors are commonly known as :
(a)Preferential zones
(b) Economics Corridors
(c) Industrial Parks
(d) Special Economic Zones
57. The electronically operated commodity exchange at national level is :

(a) National Commodity and Derivative Exchange
(b) National Multi- Commodity Exchange of India
(c) Multi-commodity Exchange of India
(d) Commodity Exchange of India
58. Te Settlement Agent for RTGS is :

(a) Reserve Bank of India
(b) State Bank of India
(c) Indian Bank's Association
(d) National Clearning Corporation
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59. Which of the following is a feature of Spot Trade :
(a) Spot Trade is process of settlement where payments and receipts of funds are settled
in respective currencies
(b) under Spot Trade, settlement takes place within two working days from the date of trade
(c) under spot Trade, a currency can be bought or sold with settlement on the same date
(d) under spot trade , Settlement can happen on the next date
60. Which of the following is considered a material alteration :
(a) converting a cheque from " Bearer" to "Order"
(b) converting a cheque from " Order" to "Bearer"
(c) filling in the date on an undated cheque
(d) crossing an open by the holder
61. Which of the following is correct regarding "Rabi Season";
(a) April to September
(b) October to February
(c) June to December
(d) None of these
62. Fro which one of the following Loan products "Teaser Loans' are offered by Banks :
(a)Education Loans
(b) Commercial Loan
(c) Loan Against security of Gold
(d) Home Loan
63. The Exim Bank has been set up for the purpose of :
(a) Functioning as a specialised institution for providing comprehensive credits on international
competitive terms for except of capital goods, engineering goods, manufactured produced ,
projects and services.
(b) Offering advisory services to exporters for non-traditional exports
(c) providing refinance facilities in regard to export financing by banks and other financial
institutions
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64. Financial Action Task Froce has an office in India at which place :
(a) Mumbai
(b) Chennai
(c) Kolkata
(d) New Delhi
65. "Aadhaar" is the new name of :

(a) PMRY
(b) NREGP
(c) UID
(d) None of these
66. 'Green Tax" is being proposed by the Maharashtra State Government Green tax
relates to :
(a) tax to be levied to all car/vehicle users
(b) tax to be levied to all categories to motor vehicles
(c) tax to be levied to old motor vehicles
67. " Whistle Blowing Policy " denotes :

(a) starting banking operations at the below of a whistle
(b) an arrangement by a company to put in place a procedure by a company internally about
possible irregularities, to the Chairman or a Committee of the Board or the external auditor in
confidence
(c) a situation , where bad advances of a banking company crosses certain fixed level
(d) a situation, where a bank had to sound alert because of massive fraud taking place
68. A short term crop loan becomes NPA if :

(a) loan and interest remains unpaid for one year
(b) loan and interest remains unpaid for two years
(c) loan and interest remains unpaid for one crop season
(d) loan and interest remains unpaid for two crop seasons
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69. As per RBI directives, the complaints relating to cash not dispensed at ATMs
although deposit account is debited , etc.Should be disposed of within a period of :
(a) 3 Days
'(b) 7 days
(c) 15 days
(d) 30 days
70. Association of National Exchanges Members of India ( ANM) is a body consisting of :
(a) Bankers and SEBI
(b) SEBI and IBA
(c) Brokers operating in the national Exchange
(d) Bankers, SEBI, IBA and RBI
71. Base Rate ( BR) is :
(a) The minimum rate of interest that a bank is allowed to charge form its customers
(b) unless mandated by the Government, RBI rule stipulates that no bank can offer loans at
a rate lower than Base Rate of any its customers
(c) Both A and B
72. Inside Trading is related to :

(a) Horse racing
(b) Share market
(c) Taxation
(d) Public Expenditure
73. Full form of PERT is :
(a) Program Entry Review Technique
(b) Program Evaluation and Review Technique
(c) Pre Evaluation and Review Technology
74. "Account Payee" crossing is a :

(a) Restricted crossing
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(b) Special Crossing
(c) General Crossing
(d) None of these
75. " Repository " means :
(a) balance held in non Currency Chest branch
(b) same as Currency Chest
(c) a part of Currency chest
76. When does a Savings Bank account becomes dormant :

If there is no transaction for a period of 12 months.
(b) if there is no withdrawal for a period of 12 months
(c) if there is no withdrawal for a period of 6 months
(d) if there is no credit for a period of 12 months
77. The word " At Sight " and "After Sight" in a bill of Exchange refers to :
(a) both mean on demand
(b) both mean after acceptance
(c) " at sight " means on demand and " after sight" means after acceptance
78. A lien is the right to :

(a) Sell the goods or securities if the dept or loan is not repaid by the borrower
(b) retain goods or securities belonging to a debtor until he has discharged a debt to the
retainer there of
(c) dispose of the goods or securities in case of default on the part of the borrower
79. A bank reconciliation statement is prepared with the help of :
(a) bank pass book and bank column of cash book
(b) Bank pass book and cash column of cash book
(c) bank pass book and petty cash book
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80. The main purpose of preparing a bank reconciliation Statement is :

(a) to know the Cash book Balance
(b) to know the pass book Balance
(c) to compare the transactions in the Cash book and pass Book
(d) To correct the cash book
(e) to reconcile Balance as per Cash Book with the Pass book Balance
81. The goods in the Consumer Protection Act, includes :
(a) Every kind of movable property except money
(b) actionable claims , stocks and shares
(c) growing crops and things attached to or forming a part of the land.
82. Under the Basel-II Accord capital requirement for credit risk can be calculated :
(a) Standardised manner which is based on external credit rating assessment
(b) Internal rating system for credit risk
(c) Both A and B
83. The features of Standardized credit rating approach are :
(a) The risk can be measured in standardised manner based on external credit assessment
(b) The risk wrights are inversely related to the rating of counterparty
(c) Lower the rating , higher the risk
84. The Objective of cash management is to :

(a) Reduce bank overdraft
(b) Minimise cost of borrowings
(c) earn maximum interest income
(d) Maintain cash at optimum levels
85. The term " working Capital Cycle ' refers to :

(a) Money invested in current assets
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(b) rotation of money invested in working capital
(c) the periodic increase or decrease in the requirement of working capital funds
(d) conversion of cash of the business again into cash through the stages of inventory
and receivables
86. A reduction of Cash Reserve Ratio (CRR) will result in:

(a) increase in lendable resource of banks
(b) will not impact the level of bank credit
(c) Increase in bank credit
(d) decrease in bank credit
87. A self help Group may become eiligible for bank loan and subsidy :
(a) after First Grading
(b) after Second Grading
(c) soon after the registration
(d) 6 months after opening of Savings Bank account
88. A time barred debt can be revived by obtaining :
(a) A letter of undertaking to pay the time barred debt
(b) time -barred debt cannot be revived
(c) a back - dated Revival Letter
(d) Revival Savings of the farmer
89. An asset will be immediately categorized as loss Asset, when the realizable value is :
(a) more than 15 per cent
(b) less than 10 per cent
(c) 10 per cent or more
(d) None of these
90. Bank guarantee is a :
(a) Demand Liability
(b) Contingent Liability
(c) Term Liability
(d) None of these
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91. Bank Holidays under Section 25 of the Negotiable Instruments Act, 1881 are declared
by :
(a) State Government for the respective State
(b) Banking Operations Department
(c) Central Government
(d) RBI
92. "Disguised unemployment" Denotes:
(a) a situation where workers are disguised
(b) a situation where too many workers are doing a limited amount of work.
(c) a situation where workers are doing a limited amount of work
93. Expand "FINO":

(a) Fiscal Information Network Organization
(b) Financial Initiative for Network Operations
(c) Financial Information Network operation ltd
(d)None of the above
94. Expand " LIBOR":
(a) London Inter-bank Offered Rate
(b) Legal Indian Borrowal Rate
(c) FEDAI Approved rates
(d) ID rate for PCFC
95. Expand " NEFT":
(a) National Emergency Fund for Traders
(b) National Electronic fund Transfer
(c) National Emergency Fund Transfer
(d) National Electronic Financial Trust
96. Expand :P.I.O" in relation to Right to Information, 2005 :

(a) Public Information Officer
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(b) Principal Information Officer
(c) Press Information Officer
(d) None of these
97. Foreign Trade Policy is Framed by :
(a) RBI
(b) EXIM Bank
(c) DGFT
(d) Ministry of Commerce, Government of India.
98. The "bank rate " is :

(a) Free to fluctuate according to the forces of demand and supply
(b) Set by the Reserve Bank of India
(c) set by the Reserve Bank of India as directed as directed by the Union Ministry of Finance
(d) Set by the Reserve Bank of India as directed as directed by the Indian Banks' Association
99. The term "exchange arbitrage " is the :
(a) Arbitration of exchange disputes
(b) Simultaneous buying selling of foreign exchange to make a profit because interest rates vary
in different countries
(c) Simultaneous purchase of a currency in one market and its sale in another market
wit a view to realise profit
(d) buying of foreign currency to realise a future profit when it appreciates
100. The law regarding negotiable instruments is contained in :
(a) The Bill of Exchange Act, 1881
(b) The Banking Regulation Act, 1949
(c) The Cheques Act, 1881
(d) The Negotiable Instruments Act, 1881
101. " Black Revolution " is associated with :

(a)Tea plantation
(b) Coffee Plantation
(c) Rubber Plantation
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(d) Printing Ink
102. "channel Financing" means:

(a) Financing of supply-delivery chain, i.e.., dealer of identified large corporate entities
financed by banks
(b) Laying of agriculture canals
(c) Financing through NBFCs
103. "from 61' is associated with :

(a) Persons not in receipt to taxable income
(b) persons with agricultural income
(c) both A and B
104. Which one of the following is not correctly matched ?

(a) Rural Credit : NABARD
(b) Industrial
: SIDBI
(c) Rural Poverty : SJSRY

(d) Disguised
: Subsistence unemployment agriculture
105. "Red Clause " Letter of Credit is :

(a) when opening bank advises the advising bank to give advance to the exporter
(b) when advising bank informs the opening bank about credit given to exporter
(c) all the clauses are printed in red
106. A bank normally does not have to deal with an issue related to :
(a) Payments and settlement system
(b) constractual rights of creditors
(c) intellectual property right
(d) cases of insolvency
107. Treasury bills are sold in India by:
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a. Reserve Bank of India
b. State Governments
c. Commercial Banks
d. SEBI
108. . Yuan is a currency of which country:

a. Japan
b. China
c. Korea
d. Indonesia
109. Which institution acts as reinsurer:
a. New India Insurance
b. Life Insurance Company
c. General Insurance Company
d. United India Insurance
110. "Blue Car" denotes:
a. a Credit card
b. a Debit card
c. a proposition by EU to attract highly qualified professionals from other countries
d. none of the above
111. The Headquarter of Asian Development Bank (ADB) is at:

a. Singapore
b. Manila
c. Hong Kong
d. Tokyo
112. Liquid assets means:
a. Cash only
b. Cash and debtors
c. Cash and Debtors (except bad debts)
d. Cash and Debtors (except bad debts) and Marketable Securities
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113. For the developing countries of Asia, the international agency which provides soft
loans is:
a. International Monetary Fund
b. Asian Development Bank
c. International Development Association
d. World Bank
114. No licence from RBI is required for:
a. opening a new bank branch in India
b. opening a new bank branch outside India
c. shifting an existing branch outside the city, village or town
d. shifting an existing branch within the same city, village or town
115. Commercial banks are unique among financial institutions in that they:
a. advance loans to business
b. provide insurance to depositors
c. create demand deposits
d. hold saving deposits
116. Financial Year in banks is a period from:
a. January to December
b. May to June
c. April to March
d. January to April
117. "Pure Banking Nothing Else" is a slogan raised by:
a. ICICI Bank
b. HDFC Bank
c. SBI
UTI Bank
118. 'Smart Money' is a term used for:

a. Internal banking
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b. Credit card
c. Cash with bank
d. Cash with public
119. Pledge means:
a. advance against goods
b. open working capital limits
c. bailment to goods as security for payment of a debt or performance of a promise
d. none of hte above
120. When was the SAARC established:

a. On December 8,1983
b. On January 1, 1984
c. On December 8,1985
d. On January 1, 1985
121. NABARD was established on the recommendation of the:
a. Public Accounts Committee
b. Shivaraman Committee
c. Narsimhan Committee
d. All of hte above
122. The Infrastructure Development Bank of India has its Headquarter in:
a. New Delhi
b. Mumbai
c. Bangalore (Bengluru)
d. Kolkata
123. The guarantor of a customer's account has has the right:

a. to inspect of a customer's account has the right
b. to be provided with the statement of the account
c. to be informed only about the extent of his liability
d. to be provided with all the information about the way the account is conducted
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124. The term "Balance of Trade" means:
a. A point where the values of imports and exports are equal
b. The term is used with reference to bilateral trade agreements with the countries of CIS Block
c. the difference between the cost of the imports and exports of a country
d. the difference between the total of transactions with foreign countries in trade, services and
capital
125. The term "bank money" is used to denote:
a. loans and advances granted by the commercial banks
b. demand deposits used as money, i.e., deposits withdrawable by cheques
c. loans granted by the Reserve Bank of India to the commercial banks
d. money provided by the Reserve Bank of India to the Government
126. " Multi - Currency basket" means:
a. a number of international currencies to which the value of SDRs is linked
b. selected international currencies to which the value of Asian Monetary Unit is linked
c. number of major international currencies to which the external value of the Indian
rupree is linked
d. the name given to a group of West European currencies
127. The term "hyper - inflation" is used to denote:
a. a situation with a moderate rise in price livel
b. an inflationary situation where the external forces are the primary contributing factors
c. a "runway" or "galloping" inflationary situation where the monetary unit becomes
almost worthless
d. a situation where the cost of living index is rising alarmingly
128. "Funded debt" means:

a. all Government securities which are marketable on the stock exchange market
b. all Government debt which is not marketable on the stock exchange market
c. Government borrowings guaranteed by the Government
d. Institutional borrowings guaranteed by the Government
129. "Free port" denotes:
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a. a port where there are no restrictions on incoming and outgoing vessels
b. a port where no licence is required for import of goods
c. a port which allows entry to goods without payment of import duty
d. a port which allows free entry to goods which are to be re-exported
130. "Free trade area" denotes:

a. a group of countries which have decided to impose no duties of any kind on their imports
b. a group of countries which have decided to impose no duties of any kind on imports
from other members of the group
c. an area where there are no restrictions of any kind on the trading activities
d. an area where trade is free from kind of taxes
131. "Floating debt" denotes:
a. Government securities with no definite rate of redemption, but which may be redeemed any
time at the discretion of the Government
b. that part of the public debt which consists of short term borrowings by the
Government
c. Government securities which continue changing hands
d. Government securities whose date of maturity falls within next five years
132. "Treasury bills" means:
a. salary bills drawn by Government officials on the treasury
b. bills drawn by the Government contractors and other supplies on the treasury for the dues
owed to them by the Government
c. obligations of the Government of India issued by the Reserve Bank of India and
payable normally ninety-one days after issue
d. a node of drawings by the Treasury Officer on the Reserve Bank of India
133. "Token money" means:

a. coins where the value of metal in them is equal to the value attached to them by law
b. coins where the value of metal in them is less then the value attached to them by law
c. coins where the value of metal in them is more than the value of metal attached to them by
law
d. money represented by the tokens of specified values issued by the Reserve Bank of India
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134. "Bulls and Bears" are terms used in:
a. bullion markets
b. vegetable markets
c. stock exchange
d. commodity markets
135. The definition of the priority sector was first formalised in 1972 by:
a. Planning Commission
b. National Development Council
c. Reserve Bank of India
d. Ministry of Finance, Government of India
136. Liquidity ratio is fixed by the Reserve Bank of India under the powers conferred on it
by:
a. Reserve Bank of India Act, 1934
b. Companies Act, 1956
c. Banking Regulation Act, 1949
d. Special Powers given by the Union Ministry of Finance
137. Dalal Street is:

a. in Kolkata - famous for jute market
b. in Mumbai - famous for stock exchange market
c. in Delhi -famous for Kabari (Waste goods) market
d. in Bangalore - famous for race course
138. When was the Imperial Bank of India nationalised:
a. 1948
b. 1950
c. 1955
d. 1969
139. Most banks are offering teaser rates on home loans. What does it mean:
a. The rates keep fluctuating during the period of loan with high uncertainty
b. The initial rate is offered at a rate lower than the prevailing market rate for a few
months and then gradually keeps increasing
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c. The initial rate is higher than the current market rate with offer of lower rates at a later date
d. Home loan borrowers of shorter duration are given preferential rate
140. There are many security features which are regularly being explained and stressed
to check against forged currency notes. One of then is Intaglio printing. What is it:
a. It is specialized printing of Rs.1,000 and Rs. 500 denomination currency notes
b. It is raised printing on the currency notes of RBI seal, Ashoka Pillar emblem etc.
c. It is printing on special printing press of RBI
d. It is printing through special inks of the security features on curency etc.
141. What is 'NIKKEI':

a. Share Price Index of Tokyo share market
b. Name of Japanese Central Bank
c. JApanese name of the country's Planing Commission
d. Foreign Exchange market of Japan
142. NABARD was established on the recommendation of:
a. Public Accounts Committee
b. Shivaraman Committee
c. Narasimham Committee
d. Khandelwal Committee
143. What do we mean by Green Shoe Option:

a. It is the shoe which is green in colour
b. It is type of carbon credit rights that the nation have to purchase to get the right to emit
carbon
c. It gives the underwriter the right to sell investors more shares than originally planned
d. The global warming of the earth
144. "Micro Credits" are loans:
a. granted to distressed persons (other than farmers) to pre-pay their debt to non- institutional
lenders against appropriate collateral provided by banks
b. not exceeding Rs.50,000 per borrower provided by banks
c. both A and B
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d. none of the above
145. Who was the Finance Minister when 14 Banks were nationalised on 19th July, 1969:
a. Mrs. Indira Gandhi
b. Morarji Desai
c. C. Subramaniam
d. Pranab Mukherjee
146. Counter guarantee means a guarantee obtained:
a. by banks from customers on whose behalf the banks have to issue guarantees in
favour of third parties, such as Government department, Public bodies, Corporations etc,
b. by banks from ECGC covering export risk
c. by banks from the beneficiary of the guarantee in whose favour the guarantee is to be issued
d. All of the above
147. By "Technical NPA", it means:

a. a loan account becoming NPA for non-renewal
b. a loan account becoming NPA for not obtaining stock statements
c. non-recording the due after re-phasing/restructuring of a loan account
d. All of the above
148. Cash Reserve Ratio (CRR) is maintained in the form of:

a. Investment in Money Market
b. Government Securities
c. Balance with RBI
d. All of the above
149. Computer system failure is classified in the risk category of:

a. Credit Risk
b. Operational Risk
c. Technology Risk
d. Security Risk
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150. Credit facility sanctioned for purchasing, processing and packing of goods meant
for export is known as:
a. packing credit
b. bridge finance
c. forfaiting
d. none of these
151. How is Base Rate calculated:
a. a host of factors, like cost of deposits, administrative costs, profitability of a bank in the
previous financial year are taken into account
b. certain parameters with stipulated weights are considered while calculating a lender's Base
Rate
c. cost of deposit has the highest weight in calculating Base Rate
d. all of the above
152. A commercial bank is prohibited from issuing a bank draft payable to bearer by the
provisions contained in:
a. The Negotiable Instruments Act, 1881
b. The Reserve Bank of India Act, 1934
c. The Companies Act, 1956
d. The Banking Regulation Act, 1979
153. Which of the following organisations/ agencies controls the monetary policy of our
country:
a. SEBI
b. Planning Commission
c. RBI
d. Union Ministry of Finance
154. Negative lien is:
a. a right of the bank to take possession of all the assets hypothecated to the bank in the case
of default by the borrower
b. a special type of lien on the shares of public limited companies
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c. a declaration of the borrower to the effect that his assets are free from encumbrance
and that he shall not encumber or dispose them of without bank's permission
d. noe of the above
155. What is securitisation:
a. A process which converts conventional credit into tradable Treasure Assets
b. Credit receivable of the Bank can be converted into Bonds i.e., pass through certificates
c. These certificate can be traded in the market
d. All of the above
156. Busy Season Credit Policy refers to the period:

a. February and August
b. June and December
c. March to September
d. October to March
157. Consumer Protection Act, 1986 does not cover:

a. failure to open accounts
b. failure to issue drafts
c. sanction of loans
d. ATMs
158. Currency Chest Slip is Serially numbered at the beginning of each year from:
a. January to December
b. March to April
c. April to march
d. July to June
159. Difference between buying and selling rates of a currency is known as:
a. Forward Rate
b. Bid-ask Rate
c. Spot Rate
d. None of these
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160. EEFC account can be opened in the form of:
a. Current Account, SB Account and TDR
b. Current Account and SB Account
c. Current Account only
d. None of the above
161. Government securities are issued for a maximum period of:

a. 10 years
b. 15 years
c. 25 years
d. 30 years
162. The Securities and Exchange Board of India (SEBI), a statutory autonomous body,
aims to:
a. promote a fair and healthy securities market
b. protect investor's rights
c. prevent malpractices in a mobilisation of resources through capital
d. all of the above
163. The creation of over the counter exchange of India (OTC) would help the
introduction of a multi-tiered market for:
a. Exports
b. Securities
c. Small Scale Industries
d. Housing
164. Truncation of cheque means:
a. The cheque in the paper form will be retained by the collecting banker and he will submit only
a computerised statement to the Clearing House
b. Entire clearing operations would be done only through computers
c. Cheque will be scanned and the electronic image, instead of physical cheque, will be
transmitted in the clearing cycle
d. Debiting the drawer's account through internet banking
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165. What is a convertible Bond:
a. It is a mix of Debt and Equity
b. Bond holder has an option to convert debt into equity on a fixed date
c. The conversion price is predetermined
d. All of the above
166. What is External commercial Borrowings:

a. Indian companies can borrow on global market through Bank loan or issue of debt paper
b. The debt can be repaid by reconversion of rupee funds into foreign currency
c. A and B both
167. What is Gilts:
a. Securities issued by government or Treasuries
b. They do not have any credit Risk
c. A and B both
168. SGL Account is:

a. Subsidiary General Ledger
b. It is maintained by public Debt Office of RBI
c. Banks maintain exclusively GOvernment Securities Accounts
d. All of the above
169. Know Your Customer (KYC) guidelines are as per the provisions of:
a. Section 35 of Negotiable Instruments Act, 1881
b. Section 35A of Banking Regulation Act, 1949
c. Section 35A of RBI Act, 1934
d. IBA guidelines
170. Maximum period for which a commercial paper can be issued is:
a. 3 months
b. 6 months
c. 1 year
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d. 2 years
171. Out of the "non customer facing activities" given below, which of hte following has
been moved out of the branch to the maximum extent:
a. Issue of demand drafts
b. Processing of loans
c. Clearing of cheques
d. Opening of Savings Accordingly, the three
172. What does "Round Tripping" in Foreign Direct Investment (FDI) relate to:
a. Using FDI funds inside the country
b. Using FDI funds outside the country
c. Domestic funds used outside the country
173. What does Collateral Security mean:

a. Securities in the form of goods pledged for Cash Credits
b. Securities given to banks for loans against approved securities
c. Securities in the form of shares blue chip companies
d. Security given to banks over and above the primary security
174. When trading takes place among members of a stock Exchange as a create false
volumes and rigging the prices of shares, it is known as:
a. Spot Trading
b. Future Trading
c. Circular Trading
d. Insider Trading
175. When two parties make an arrangement to exchange future cash flows, it is called:
a. Options
b. Arbitrage
c. Swap
d. Futures
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176. What is ECBs?
a. External Commercial Borrowings
b. Existing Commercial Banks
c. External Commercial Banks
d. Exclusive Commercial Borrowings
177. ALM stands for:

a. Asset Liasoning Management
b. Asset Level Management
c. Asset Liability management
d. Assertive Legal Management
178. National Housing Bank (NHB) was established in:
a. 1988
b. 1989
c. 1991
d. 1998
179. In India, The bank NABARD does not provide refinance to:
a. Scheduled Commercial BAnks
b. Regional Rural Banks
c. Export-Import BAnks
d. State Land Development Banks
180. Which of the following is Not a development bank in Indian Context?
a. IDBI
b. SIDBI
c. NABARD
d. SBI
181. Which of the following called a 'banker's cheque'?

a. Demand draft
b. Debit card
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c. Pay order
d. Fixed deposit
182. Bouncing of cheques may lead to________.

a. 6 months imprisonment
b. 1 year imprisonment
c. 2 year imprisonment
d. 3 year imprisonment
183. The main function of the Exim Bank is:

a. to help RBI in the regulation of foreign exchange
b. to prevent unlicensed transaction
c. to promote exports and curtail imports
d. to conserve foreign exchange
184. Open market operations of a Central Bank are sale and purchase of:
a. foreign currencies
b. corporate securities
c. trade bills
d. government securities
185. To prevent recurrence of scams in Indian Capital Market, the Government has
assigned regulatory powers to:
a. RBI
b. SBI
c. SEBI
d. ICICI
186. The Reserve bank of India was set up under the recommendation of which of the
following commissions?
a. Phillip Commission
b. Simon Commission
c. Hilton Young Commission
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d. Hunter Commission
187. Which of the following is now a punishable offence by a bank Account holder?
a. If a cheque is not crossed
b. If a post-dated cheque is issued
c. if a cheque drawn by him is dishonoured for insufficiency of funds in his account
d. Issuing a cheque without signature
188. Which of the following are the functions of the Central Bank of India?
a. Regulation of Currency and flow of credit system
b. Maintaining exchange value of rupee
c. Formulating monetary policy of India
d. Supervisory powers over the indigenous bankers and leasing companies
189. Which bank in India gets the first ISO certification?

a. Syndicate Bank
b. Canara Bank
c. Indian bank
d. State bank of India
190. Which of the following organisations provide credit history of the borrowers?
a. RBI
b. SEBI
c. CIBIL
d. CRISIL
191. A crossed cheque is one, which can be encashed only:
a. By the drawee
b. through a bank
c. at the State Bank of India
d. after is has been transferred to another person
192. Exporters in India get insurance cover and risk cover from which of the following
organizations?
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(a) SIDBI
(b) NABARD
(c) ECGC
(d) RBI
193 . The govt. of India does not provide and direct financial assistance to which of the
following schemes?
(a) Mahatma Gandhi National Rural Employment Guarantee scheme.
(b) Rural Health mission
(c) India Aawas Yojana
(d) Jeevan sathi Yojana
194. Which of the following terms is used in banking and finance?

(a) Abiotic
(b) Demand Deposit
(c) Fat scales
(d) A diabetic
195. Names of which of the following rates/ratios cannot be seen in financial

newspapers?
(a) Bank rate
(b) Repo Rate
(c) Cash Reserve Ratio
(d) Pulse Ratio
196. Who amongst the following can take benefit of the Social Security Fund established
by the Govt. of India for unorganized workers?
(a) Primary school teacher
(b) Employee of Sugar Factory
(c) Taxtile Mazdoor
(d) Rickshaw Puller
197. Who amongst the following was never a Governor of the RBI ?
(a) Bimal Jalan
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(b) Y.V. Reddy
(c) Arup Roy Choudhary
(d) D. Subbarao
198. Which of the following in NOT the name of a bank having branches in India?
(a) State Bank of India
(b) Naively Lignite Corporation
(c) Barclays
(d) HSBC
199. Banks do not provide which of the following services?

(a) Issuing Bank Drafts
(b) Deposting Money
(c) Sale of post cards and postal stamps
(d) Lockers for valueable items/ documents
200. The loan given by a bank to a person to purchase house is called........... .
(a) Project
(b) Business Loan
(c) Credit Loan
(d) Top up Loan
201. Which of the following is an example of cash less purchase?

(a) ATM withdrawal
(b) Credit Card
(c) Debit Card
1. Only 1
2. Only 2
3. Only 1 and 2
4. All of these
202. Which of the following programmes the Govt. of India has launched to develop
comprehensive rural infastructure in the country?
(a) Bharat Nirman
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(b) Indira Aawas Yojana
(c) Watershed Development Programme
(d) None of these
203.The name of which of the following great leaders is now associated with National
Rural Employment Guarantee Scheme?
(a) Indira Gandhi
(b) Mahatma Gandhi
(c) Jawaharlal Nehru
(d) None of these
204. Which of the following is NOT the name of a multinational bank?
(a) BNP Paribas
(b) British Bank of Middle East
(c) Standard Chartered Bank
(d) Cathay Pacific
205. Which of the following terms is NOT associated with banking operations?
(a) Repo Rate
(b) Prime Lending rate
(c) Equator
(d) Corporate Finance
206. Which of the following schemes was launched to promote exports of agricultural
produce and their value added products in India?
(a) Vishesh Krishi and Gram Udyog Yojana
(b) Financial Inclusion Scheme
(c) Rastriya Krishi Vikash Yojana
(d) None of these
207. As per the instructions given by the RBI, now all banks are required to provide
which of the following in all its branches mandatorily?
(a) Note Sorting Machines
(b) Special Counters for senior Citizens
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(c) Service sector
(d) All of these
208. Which of the following terms is NOT used in the field of Banking & Finance ?
(a)Overdraft
(b) Base Line
(c) RTGS
(d) GBC
209. Which of the following apex body and regulators has asked banks to swap customer
related information so that the frauds and defaults may be prevented in future?
(a) Bombay Stock Exchange (BSE)
(b) Indian Bank's Association (IBA)
(c) Securties & Exchange Board of India (SEBI)
(d) Reserve Bank of India (RBI)
210. Who amongst the following is the author of the book (released recently) "India and
Global Financial Crisis : Managing Money and Finance"?
(a) Dr. Bimal Jalan
(b) Dr. C. Rangarajan
(c) Dr. Manmohan Singh
(d) Dr. Y.V. Reddy
211.The Reserve Bank of India does not print currency notes of the denomination of
.............. .
'(a) 20/(b) 50/(c) 3,000/(d) 1,000/212. Which of the following is considered as the financial capital of India?
(a) New Delhi
(b) kolkata
(c) Ahmedabad
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(d) None of these
213. "Micro Credit" means:
(a) Loans of small amounts to people in unorganized sector
(b) Loans to self Help Groups
(c) Loan amounting rs. 50 lakhs t rs 5 crores to Medium and Small Industries Units
1. Only (1)
2. Only (2)
3. Only (1) and (2)
4. None of these
214. The RBI has given its permission for cash withdrawal at "POS terminals." What is
the full form of "POS"?
(a) permitted on sale
(b) potential of service
(c) point of sale
(d) permission of sale
215. " The Doing Business Report" is prepared by which of the following organization
every year?
(a) Asian Development Bank
(b) World Bank'
(c)International Monetary Fund
(d)World Trade Organisation
216. "Yen" is the currency of ....
(a) China
(b) south Korea
(c) North Korea
(d) None of these
217. A new Foreign Bank Sarasin & Co. has launched its operations in India recently.
This is a bank based in:
(a) USA
(b) Switzerland
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(c) France
(d) None of these
218. The Head of the Reserve Bank of India is designated as the :
(a) Chief Executive Officer
(b) Managing Director
(c) chief Banking Officer
(d) None of these
219. Whenever RBI does not open Market operation Transaction, actually it wishes to
regulate which of the following?
(a) Inflaction only
(b) Liquidity in economy
(c) Borrowing powers of the banks
(d) flow of Foreign Direct Investment
220 .In economics it is generally believed that the main objective of a Public Sector
Financial Company like Bank is to:
(a) Employ more and more people
(b) Maximize total profits
(c) Maximize total productions
(d) Provide financial service to the people of the nation of its origin across the country
221.In a Company the use of price sensitive corporate information by the

Caompany__people to make gains or cover losses is known as:
(a) insider trading
(b) future trading
(c) foreign trading
(d) stock trading
222. Which of the following cannot be called as a debt Instrument as referred in financial
transactions?
(a) Certificate of Deposits
(b) Bonds
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(c) stocks
(d) Commercial Papers
223. Which of the following Committees has given its recommendations on " Financial
Inclusion"?
(a) Rakesh Mohan Committee
(b) Rangarajan Committee
(c) sinha Committee
(d) None of these
224. In Bullion Market:

(a) Golds are purchased and sold
(b) Books are purchased and sold
(c) Animals are purchased and sold
(e) None of these
225. Non Banking assets include:
(a) Property seized by the bank
(b) Auction sale of the customer's property
(c) Band Building
(d) Both A and B
(e) None of these
226. Micro credit started from:
(a) USA
(b) India
(c) Bangladesh
(d) Japan
(e) None of these
227. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form:
(a) Imperial Bank of India
(b) Reserve Bank of India
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(c) Bank of India
(d) Union Bank of India
(e) None of these
228. Production and consumption takes place at about the same time. This is a characteristic of:
(a) Manufacturing sector
(b) Agriculture sector
(c) Service sector
(e) None of these
229. The tertiary sector of economy is called as:
(a) Manufacturing Industry
(b) Service Industry
(c) Agro and Fishing Industry
(e) None of these
230. FDR is:

(a) Fix Date Rate
(b) Fixed Deposit Receipt
(c) Full Date Rate
(e) None of these
231. NBA stands for:
(a) Net Banking Assets
(b) Net Book Act
(c) National Banking Act
(d) National Banking Association
(e) None of these
232. Which among the following are called final accounts of a Bank?
(a) Trading Accounts, Profit and Loss Account and Balance Sheet
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(b) Profit and Loss Account and Balance Sheet
(c) Balance Sheet Only
(e) None of these
233. What is the full form of ECB?

(a) Extra Commercial Banking
(b) Extra Commercial Borrowings
(c) External Commercial Borrowings
(e) None of these
234. The following offering is not a service:
(a) Fixed Deposit Receipt
(b) Postage Stamp
(c) Gift coupon of a chain share
(d) Insurance policy
(e) None of these
235. Home loans are granted to:

(a) Individuals
(b) Institutions
(c) Builders
(d) Above all
(e) None of these
236. A call means:
(a) Calling on friends
(b) Calling on bank employees
(c) Calling on prospective customers
(d) To make telephone calls
(e) None of these
237. Financial Inclusion means:
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(a) Opening accounts of finance companies
(b) Financial analysis of balance sheet figures
(c) Opening accounts of HNIs
(d) Opening accounts of underprivileged persons
(e) None of these
238. 'Benchmark' means:

(a) Products lined upon a bench
(b) Salesmen sitting on a bench
(c) Set standards
(e) None of these
239. CRM means:
(a) Customer Relationship Management
(b) Customer Retention Manager
(c) Customer's Relatives Meet
(d) Channel Route Market
(e) None of these
240. Bancassurance means:
(a) Assurance give by banks of Loanees
(b) Assurance to bank with one bank
(c) Assurance to repay loans
(d) Selling insurance products through banks
(e) None of these
241. "HNI" means:

(a) Highly Non-interested Individuals
(b) Highly Needy Individuals
(c) High Networth Individuals
(e) None of these
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242. Expand "EPZ":
(a) Economical Plus Zone
(b) Entertainment Plus Zone
(c) Export Promotion Zone
(d) Electronic Promotion Zone
(e) None of these
245. E.P.S. in share market stands for:
(a) Earnings per share
(b) Electronic Payment System
(c) Employee Pension Scroll
(d) Equated Payment System
(e) None of these
246. The currency, Euro, has been introduced w.e.f.:

(a) 01.01.1999
(b) 01.01.2000
(c) 01.08.2001
(d) 01.03.2002
(e) None of these
247. RBI absorbs liquidity in the system through:
(a) Repo
(b) Reverse Repo
(c) Both A and B
(e) None of these
248. Regional Rural Banks (RRBs) are regulated by:

(a) NABARD
(c) Sponsoring Bank
(d) Board of respective RRBs
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(e) None of these
249. Ten Rupee notes contain the signature of:

(a) Finance Secretary, GoI
(b) Chairman, SBI
(c) Governor, RBI
(d) Finance Minister, GoI
(e) None of these
250. Under provisions of which one of the following Acts, the RBI issues directibes to the Banks
in India:
(a) RBI Act
(b) Banking Regulation Act
(c) Essential Commodities Act
(d) Both A and B above
(e) None of these
251. The main function of IMF is to:
(a) Finance investment loans to developing countries
(b) Act as a private sector lending arm of the World Bank
(c) Help to solve balance of payment problems of member countries
(e) None of the above
252. The Headquarters of NABARD is situated in:
(a) Delhi
(b) Mumbai
(c) Lucknow
(d) Kolkata
(e) None of these
253. What is the full form of ASBA:

(a) Allotment supported by Blocked Amount
(b) Application supported by Blocked Amount
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(c) Application supported by Bank Amount
(d) Allotment supported by Bank Account
(e) None of these
254. National Savings Certificate matures at the end of:
(a) Six years
(b) Six and half years
(c) Seven years
(d) Eight years
(e) None of these
255. A cheque drawn on a Treasury is treated as a:
(a) Cheque
(b) Negotiable instrument
(c) Bill
(d) Government cheque
(e) None of these
256. A marginal farmer is one who owns:

(a) up to 2.5 acres of dry land
(b) up to 1.25 acres wet land
(c) either A or B
(e) None of these
257. Bank branches need tp report suspicious transaction to:
(a) Controllers concerned
(b) RBI
(c) CVC
(d) FIU-IND, New Delhi
(e) None of these
258. Bank for International Settlement (BIS) is headquartered at:

(a) Manila
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(b) Chicago
(c) Basle, Switzerland
(e) None of these
259. Banks can receive deposits from customers up to a maximum period of:
(a) 10 years
(b) 15 years
(c) 20 years
(d) 25 years
(e) None of these
260. Credit Card related grievances can also be referred to:
(a) Consumer Forum
(b) Ombudsman
(c) Lok Adalat
(d) All of these
(e) None of these
261. Expand BIS:

(a) Bank for International Settlements
(b) Bank for Industrial Settlements
(c) Bank for Industrial Sectors
(d) Bank for International Services
(e) None of these
262. For a foreigner temporarily residing in India, type of account to be opened is:
(a) Resident Account
(b) NRO Account
(c) NRE Account
(e) None of these
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263. For which of the following categories of banks is "protected Disclosure Scheme" is
applicable:
(a) Co-operative Banks
(b) Private Banks and Foreign Banks
(c) Public Sector Banks
(e) None of these
264. The punchline "Feel the Difference" is associated with:
(a) DCB Bank
(b) Deutsche Bank
(c) Yes Bank
(d) Citibank
(e) None of these
265. VDMS in Government transactions means:

(a) Verified Date-wise Monthly Statement
(b) Valuable Data Management System
(c) Variable Data Matching System
(e) None of these
266. The term packing credit means:

(a) advances against goods in packages
(b) advance for import of goods
(c) advance for export of goods
(d) advance for financing the purchase, processing, manufacturing or packing of
goods for export against a letter of credit or a confirmed order
(e) None of these
267. The DICGC operates the Credit Guarantee Scheme for small scale industries on behalf of
the:
(a) LIC
(b) IBA
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(c) Union Government
(e) None of these
268. "Window dressing" means:

(a) the modern way of decorating a branch office
(b) a decorative way of presenting the Balance Sheet and Profit and Loss Account of a bank
at its annual general meeting
(c) manipulation of accounts with a view not to give the share holders a true and fair view
(d) a practice of presenting final accounts of a bank with a view to exhibit a
favourable position
(e) None of these
269. The term "dormant accounts" means:
(a) accounts showing an average balance of less than Rs. 100 during a half year
(b) accounts which remains inoperative for an extended period of time
(c) accounts which have been blocked under the exchange control regulations
(d) loan/cash credit/overdraft accounts which are considered irrecoverable
(e) None of these
270. World Investment Report is annually published by:
(a) IBRD
(b) WTO
(c) IMF
(d) UNCTAD
(e) None of these
271. As we know the RBI is the apex Bank of India, similarly the apex Bank of USA is called:
(a) Federal Reserve
(b) The Central Bank of USA
(c) Bank of America
(e) None of these
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272. The regulator of Micro Finance in India is:
(a) Finance Ministry
(c) State Bank of India
(d) All of these
(e) None of these
273. Banker's right of set off can be immediately exercised in case of:
(a) Insolvency of the borrower
(b) Lunacy of the borrower
(c) Death of the borrower
(e) None of these
274. Banks do not purchase/discount:

(a) Accommodation Bills
(b) Documentary Bills
(c) Usance Bills
(d) Clean Bills
(e) None of these
275. The biggest international financial center in the world is:
(a) Frankfurt
(b) Geneva
(c) London
(d) New York
(e) None of these
276. Which of the following Institutions extends maximum term loan to States:
(a) NABARD
(b) LIC
(c) IDBI
(d) IFCI
(e) None of these
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277. For which of the following purpose can banks grant Working Capital Term Loan:
(a) Meeting margin for term loan
(b) Meeting margin for working capital loan
(c) Meeting contingent expenses
(d) Meeting credit needs for peak season in an industry
(e) None of these
278. Loan System of Advances has been recommended by:
(a) Rashid Jilani Committee
(b) Narasimham Committee
(c) Goiporia Committee
(d) Tandon Committee
(e) None of these
279. Which of the following is not an indicator of productivity for a bank branch:
(a) Business Per Employee
(b) Accounts (both deposits and advances) Per Employee
(c) Net Profit Per Employee
(d) Neat and clean ambience
(e) None of these
280. "Service Area Approach" was recommended by:

(a) Dr. P. D. Ojha Committee
(b) A. D. Gorawala
(c) R. V. Gupta
(d) Dr. Kalia
(e) None of these
281. Records, as per Banking Regulation Act, 1949 means:
(a) Vouchers
(b) Account Opening Forms
(c) Ledgers / Registers
(d) All of these
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(e) None of these
282. The Indicative Time Norm for issue of demand draft has been stipulated at:
(a) 5 minutes
(b) 10 mintues
(c) 15 mintues
(d) 20 mintues
(e) None of these
283. In which year the Tiwari Committee recommanded for establishment of Special Tribunals
for Banks dues recovery:
(a) 1981
(b) 1987
(c) 1991
(d) 1995
(e) None of these
284. As per the guidelines issued by the SEBI the permanent Account Number (PAN) is a must
for which of the following:
(a) Demat Accounts
(b) All Savings Bank Accounts
(c) All Housing Loan Accounts
(d) All Current Accounts
(e) None of these
285. The first Indian RRB that is sponsored by the Union Bank that has achieved core banking
solution is:
(a) Kheladi Grameen Bank
(b) Riddhi Siddhi Grameen Bank
(c) Rewa Siddhi Grameen Bank
(d) The Rewa-Dahej Bank
(e) None of these
286. Bad loans in banking terminology are generally known as:
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(a) Prime Loans
(b) Prime Asset
(c) BPOs
(d) NPAs
(e) None of these
287. Currency notes issued by RBI are fully covered by:

(a) Approved assets
(b) Gold
(c) Foreign exchange
(d) All of these
(e) None of these
288. Authority to prescribe retention period of records of banks vests with:

(a) IBA
(b) RBI
(c) GOI
(d) SEBI
(e) None of these
289. Ceiling for settlement through Lok Adalats is:
(a) Rs. 10 lakh
(b) Rs. 15 lakh
(c) Rs. 20 lakh
(d) Rs. 25 lakh
(e) None of these
290. If a bank wants to introduce a new deposit scheme, the same is now approved by:
(a) RBI
(b) IBA
(c) respective Bank's Board
(d) Both A and B
(e) None of these
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291. The main watchdog of international trade is:
(a) IMF
(b) World Bank
(c) GATT
(d) IFC
(e) None of these
292. Which one of the following has largest network, accounts and annual deposits:
(a) IDBI
(b) ICICI
(c) Post office saving bank
(d) IOB
(e) None of these
293. The Interest Rate Policy is a component of:

(a) Fiscal Policy
(b) Monetary Policy
(c) Trade Policy
(d) Direct Control
(e) None of these
294. Credit Guarantee Fund Trust for Small Industries has been set up on the recommendations
of:
(a) Narasimham Committee
(b) Ghosh Committee
(c) Chore Committee
(d) Kapoor Committee
(e) None of these
295. In respect of composite term loans granted to village industries, refinance is obtained from:
(a) NABARD
(b) SIDBI
(c) IDBI
(d) RBI
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(e) None of these
296. RBI had introduced Advanced Approaches for Basel II Framework in India. Accordingly,
the three Approaches are:
(a) Standardized Approach
(b) Basic Indicator Approach
(c) Standardized Duration Approach
(e) None of these
297. Which Act confers on banks their Right of set off:

(a) Banking Regulation Act, 1949
(b) Reserve Bank of India Act, 1934
(c) Negotiable Instruments Act, 1881
(d) Indian Contract Act, 1872
(e) None of these
298. Which Committee was formed to review the system of lending under Consortium
Arrangement:
(a) Kapoor Committee
(b) Khan Committee
(c) J.V. Shetty Committee
(d) Share Committee
(e) None of these
299. Which of the following cannot issue a commercial Paper:
(a) Companies
(b) Primary Dealers
(c) Commercial Banks
(d) All India Financial Institutions
(e) None of these
300. The Bond can be:

(a) Zero Coupon Bond
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(b) Deep Discount Bond
(c) Floating Rate Bond
(d) Any of these
(e) None of these
301. "Refund Banker Scheme" has been launched by:

(a) IBA
(b) RBI
(c) SEBI
(d) Income Tax Department
(e) None of these
302. Bank can issue a duplicate of a lost demand draft at the request of the:
(a) Payee
(b) holder
(c) Purchaser
(d) Either A or C
(e) None of these
303. Under CDR Mechanism, Category-I CDR System is applicable to accounts classified as
under in the books of at least 90 per cent of the creditors (by value):
(a) Standard
(b) Standard and Sub-Standard
(c) Sub-Standard or Doubtful
(d) Standard or Sub-Standard or Doubtful
(e) None of these
302. The amount of advance which may be granted against the security of a life insurance
policy depends on:
(a) the amount of the insurance policy
(b) the surrender value of the policy
(c) the paid-up value of the policy
(d) the total amount of premiums paid
(e) None of these
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303. Consent of RBI is necessary before transferring funds from one chest to another; because:
(a) RBI is the owner of the Chest
(b) RBI arranges transit insurance
(c) Police protection is arranged
(d) Details to be kept a secret
(e) None of these
304. Due date for repayment of a crop loan is crop growing period, plus:
(a) 4 months for marketing
(b) 3 months for marketing
(c) 2 months for marketing
(d) 1 months for marketing
(e) None of these
305. Pillars of BASEL-II are:

(a) Minimum capital ratio
(b) Supervisory review
(c) Market discipline
(d) All of these
(e) None of these
306. When the date of the cheque is later than the date on which it is presented for payment,
the cheque is known as:
(a) stale cheque
(b) invalid cheque
(c) ante-dated cheque
(d) post dated cheque
(e) None of these
307. Term Deposits Receipt is:
(a) transferable by endorsement and delivery
(b) transferable by assignment
(c) cannot be transferred
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(d) not negotiable
(e) None of these
308. The concept of "Narrow Banking" was recommended by:
(a) Khan Committee
(b) Nayak Committee
(c) Sodhani Committee
(d) Tarapore & Narasimham Committee
(e) None of these
309. The level of activity at which total revenue cost equals total sale value or when there is a
"no profit" or "no loss" situation, it is known as:
(a) Break Even Point
(b) Operating Profit
(c) Gross Profit
(d) Net Profit
(e) None of these
310. What are the main objectives of Consumer Protection Act, 1986:
(a) To provide better protection of the interest of consumers
(b) Settlement of consumer disputes
(c) To deal with other connected matters
(e) None of these
311. The services under the Consumer Protection includes:
(a) Banking, Financing and Insurance
(b) Transport and Processing
(c) Supply of electrical and other energy
(e) None of these
312. Economic Order Quantity is a method of:

(a) managing raw materials
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(b) managing finished goods
(c) managing debtors
(d) managing creditors
(e) None of these
313. A cheque can be paid in cash even after business hours when it is presented by:
(a) a person known to bank officals
(b) any person
(c) the drawer
(d) the payee
(e) None of these
314. A mortgage involves:
(a) transfer of ownership
(b) transfer of possession
(c) transfer of interest
(e) None of these
315. Agricultural Term Loan is repaid out of:

(a) cash accrual
(b) sale proceeds of crop
(c) net incremental income
(d) annual savings of the farmer
(e) None of these
316. Branches receive Potential Linked Plan through:

(a) Block Level Banker's Committee
(b) State Level Banker's Committee
(c) District Consultative Committee
(d) Lead Bank Department
317. National Income of India is estimated by:

(a) Central Estimates Survey Committee
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(b) National Sample Survey Committee
(c) Central Statistical Organization
(d) Finance Ministry
(e) None of these
318. Invoice is a:
(a) Accounting document
(b) Legal document
(c) Commercial document
(d) All of these
(e) None of these
319. A cheque dated 31-4-2009 cannot be paid before:
(a) 30-4-2009
(b) 01-05-2009
(c) either A or B
(d) such cheque cannot be paid
(e) None of these
320. Commercial Paper is a:

(a) Demand Promissory Note
(b) Usance Promissory Note
(c) Government Promissory Note
(d) Bond issued by a Company
(e) None of these
321. Garnishee Order can be issued by:
(a) a competent court
(b) a debtor
(c) a creditor
(d) a bank
(e) None of these
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322. In respect of which of the following account, Interest rate is controlled by RBI:
(a) overdraft in Per-segment
(b) Recurring Deposits Account
(c) Savings Bank Account
(d) FCNRB. Account
(e) None of these
323. Loan is not granted by bank against security of:
(a) Gold Ornaments
(b) Certificate of Deposits
(c) Term Deposit Receipts
(d) National savings Certificate
(e) None of these
324. One Rupee Coin forms part of:

(a) Currency Chest
(b) Small Coin Depot
(c) Branch Cash Balance
(e) None of these
325. PMRY is applicable to:
(a) rural area
(b) agriculture
(c) rural and urban areas
(d) all over India
(e) None of these
326. Services associated with banking insurance and securities are called:
(a) Financial Services
(b) Banking Services
(c) Credit Services
(d) Debt Services
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(e) None of these
327. Subsidy under PMRY is reimbursed to banks by:

(a) Government of India
(b) State Government
(c) NABARD
(d) RBI
(e) None of these
328. The term "Trial Netting" is associated with:

(a) vermiculture
(b) sericulture
(c) bee-keeping
(d) pisciculture
(e) None of these
329. A person is not interested in buying the right issue and prefers to give this right to one of
his friends. This is called:
(a) renunciation
(b) surrender
(c) rejection
(d) transfer
(e) None of these
330. A private sector bank should have a minimum paid-up capital of:
(a) Rs. 100 crore
(b) Rs. 200 crore
(c) Rs. 300 crore
(d) Rs. 500 crore
(e) None of these
331. Which of the following sets is correctly matched?

(a) FTSE......New York
(b) HangSang.....Korea
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(c) Nikkei.....Japan
(d)S&P......London
332. For what kind of transactions are demat accounts necessary ?

(a) For having mobile banking facilities
(b) For taking retail loans from banks
(c) For trading in shares of companies
(d) For non resident account
333. Which of the following is not the name of the sensitive index of any stock exchange ?
(a) Nikkei
(b) Dow
(c) Matrix
(d) Kospi
334. Which of the following is not necessarily involved in an IPO process?

(a) Underwriter
(b) Register of companies
(c) Investment bank
(d) Registar of Issues
335. If the company is reporting loss for a financial year at what rate should it declare dividends
for that year ?
(a) 5%
(b) 7%
(c) 0%
(d) 10%
336. SEBI has recently launched a portal to enable investors to post their complains and for
its follow up. What is the name of his portal ?
(a)Aadhar
(b) MORE
(c) SCORES
(d) Happy Times
Page 67
337. Which of the following is not the name of the sensitive index of any stock exchange ?
(a) Nifty
(b) Dow
(c) CRIS
(d) SX 40
338. SIMEX share price index relates to the stock exchange of which of the following ?
(a) London
(b) Tokyo
(c) Singapore
(d) Mumbai
339. How many companies comprise the Bombay Stock Exchange 'Sensex'?
(a) 25
(b) 30
(c) 40
(d) 50
340. The purchase of bonds and shares of Indian companies by Foreign Institutional investors is
known as___
(a) FDI
(b) NRI investment
(c) Portfolio investment
(d) Foreign indirect investment
341. What is common between wall street in new york and Datal Street in Mumbai ?
(a) Both are locations of the central bank of the country
(b) Stock Exchange of the respective countries are located on these streets
(c) These are major banking centres
(d) Financial publication are located here
342. The base period of the sensex index which corresponds to 100 value points is which of the
following?
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(a) 1978-79
(b) 1975-76
(c)1985-86
(d)1988-89
343. SEBI was set by an act of parliament in 1992. It was however through orders of the central
government that it started its operations . when was it ?
(a) 1988
(b) 1990
(c)1992
(d) 1993
344. Which of the following indicates the wealth of a person ?

(a) Assets
(b) Capital
(c) Bank balance
(d) Net worth
345. Settlement risk can be avoided only if:
(a) settlements are made on real time basis
(b) there is a global settlement agency
(c) foreign exchange transactions are traded in Derivatives
346. The minimum and maximum court fee that is required to be paid for filing a suit in a Debt
Recovery Tribunal is:
(a) Rs. 5,000; Rs. 1,00,000
(b) Rs. 10,000; Rs. 1,00,000
(c) Rs. 12,000; Rs. 1,50,000
(d) Rs. 12,000; no ceiling
(e) None of these
347. The primary relationship between the banker and the customer is that of:
(a) trustee and beneficiary
(b) debtor and creditor
Page 69

(c) principal and agent
(d) lesser and lessee
(e) None of these
348. A debt becomes time-barned after:
(a) one year
(b) two and a half years
(c) three years
(d) five years
(e) None of these
349. Which of the following categories of persons is not eligible for being engaged as Business
Facilitation in the Bank:
(a) retired employees of banks
(b) retired bank employees and Government employees
(c) bank employees who retired voluntarily
(d) ex-servicemen
(e) None of these
350. "Gearing" in accounting parlance refers to:

(a) Break Even Sales
(b) Current Ratio
(c) Debt/Equity
(d) DSCR
(e) None of these
351. "Pomology" is associated with:
(a) mushroom cultivation
(b) study of fruit crops
(c) fish farming
(d) vegetable production
(e) None of these
352. Which of the following types of ATMs eliminates the need for PIN entry and authenticated
Page 70

customer transactions by thumb impressions:
(a) White Label ATMs
(b) Biometric ATMs
(c) On-site ATMs
(d) Off-site ATMs
(e) None of these
353. As per Nayak Committee, the margin contribution of SSI units is _____________ per cent
the annual projected turnover.
(a) 5
(b) 10
(c) 20
(d) 25
(e) None of these
354. Authority to prescribe retention period of records of banks vests with:

(a) IBA
(b) RBI
(c) GOI
(d) SEBI
(e) None of these
355. Brazil, Russia, India and China are called:

(a) Nuclear Power countries
(b) Industrialized countries
(c) Developed countries
(d) BRIC countries
(e) None of these
356. Authorized Dealers for foreign exchange transactions are appointed by:
(a) Reserve Bank of India
(b) Government of India
(c) Individual Banks
(d) FEDAI
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(e) None of these
357. Factors influencing customer behaviour in banking are:

(a) location and range of services
(b) safety and return
(c) customer service
(d) both B and C
(e) None of these
358. If a bill of exchange is not drawn for consideration, such a bill is called:
(a) Trade Bill
(b) Accommodation Bill
(c) Clean Bill
(d) Documentary Bill
(e) None of these
359. Mutual Fund Scheme that operates continuously without any limit entry for subscriptions
and redemptions is:
(a) Fixed Income
(b) Specific Fund
(c) Close Ended
(d) Open Ended
(e) None of these
360. If a bank is unable to refund the short term deposits as funds are locked in long term loans,
it involves:
(a) Interest Rate Risk
(b) Operational Risk
(c) Liquidity Risk
(d) Market Risk
(e) None of these
361. In computer parlance, "FTP" means:

(a) File Transfer Protocol
Page 72

(b) File Transit Protocol
(c) File Translate Protocol
(d) File Typing Protocol
(e) None of these
362. Net National Product is equivalent to:

(a) Gross Domestic Product minus Depreciation
(b) Gross National Product minus Indirect Taxes
(c) Net National Income minus Depreciation
(d) Gross National Product minus Depreciation
(e) None of these
363. RBI pays interest to banks on their balances kept with it for purposes of Cash Reserve
Ratio at:
(a) Less than 3 per cent
(b) 3.5 per cent on eligible balances
(c) At bank rate
(d) No interest is paid
(e) None of these
364. S.L. Kapoor Committee relates to:
(a) financing of Small Scale Industries
(b) Agriculture financing
(c) Both A and B
(e) None of these
365. The buyer or the importer who procures a Letter of Credit from his banker is called:
(a) opener of the credit
(b) beneficiary of the credit
(c) negotiator of the credit
(e) None of these
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366. The coverage of Right to information Act (RTI), 2005 is:
(a) whole of India
(b) whole of India, except North Eastern States
(c) whole of India, except the State of Jammu & Kashmir
(e) None of these
367. The difference between a Term Loan and a Deferred Payment Guarantee relates to:
(a) end use of funds
(b) outlay of funds
(c) both A and B
(e) None of these
368. Which is the first bank in India to produce Green Power for captive use through wind mills:
(a) HDFC
(b) ICICI
(c) SBI
(d) Axis Bank
(e) None of these
369. The term "Holder" under an Option Contract refers to:
(a) Buyer of the Option
(b) Seller of the Option
(c) Middleman/broker
(d) Dealer
(e) None of these
370. Which of the following Acts was framed specially to deal more effectively with the problem
of Non-Performing Assets in Banking system:
(a) SARFAESI Act
(b) Banking Regulation Act
(c) Foreign Exchange Management Act
(d) Industrial Disputes Act
Page 74

(e) None of these
371. Many Banks these days are entering into business of offering loans against property. This
business of the banks can be categorized under which of the following heads of banking:
(a) Corporate Banking
(b) Personal Banking
(c) Merchant Banking
(d) Portfolio Management Services
(e) None of these
372. Which of the following banks enjoys the reputation of being at the top in market
capitalization among all the private banks:
(a) ICICI Bank
(b) HDFC Bank
(c) Axis Bank
(d) Yes Bank
(e) None of these
372. "Apiary" is:

(a) export of pearls
(b) export of fish
(c) place where bees are reared for honey
(d) export of diamonds
(e) None of these
373. Which of the following sources of income for a bank is most significant:
(a) service Charges
(b) loans
(c) deposits
(d) fees
(e) None of these
373. Government policy to raise income by additional taxes and allocation of expenditure is
called:
Page 75

(a) Expenditure policy
(b) Monetary policy
(c) Income policy
(d) Fiscal policy
374. In case of Term Loans, the period of limitation is calculated as three years from:
(a) Date of documents
(b) Date of sanction
(c) Date of default
(d) Due date of each installment
(e) None of these
375. ISO 14000 deals with quality standard for:
(a) Environmental Management
(b) Technology Management
(c) Knowledge Management
(d) Information Management
(e) None of these
376. Providing various services relating to Capital Market is called:

(a) Merchant Banking
(b) Retail Banking
(c) Narrow Banking
(d) Modern Banking
(e) None of these
377. Remittance under the Guarantee Bond Scheme can be accepted from:
(a) only Associated Banks
(b) only Nationalized Banks
(c) only foreign Banks
(d) all Scheduled Banks and Co-operative Banks
(e) None of these
378. Blue chip securities refer to :
Page 76

(a) shares of any company
(b) shares of companies, which are listed at any of the stock exchanges
(c) shares of good companies
(e) None of these
379. Which of the following is not included in government securities:

(a) Promissory Notes
(b) Debentures
(c) Bearer Bonds
(d) All of these
(e) None of these
380. TDR offered as security for an advance is transferred to the bank by way of :
(a) pledge
(b) charge
(c) assignment
(d) All of these
(e) None of these
381. The Bank which has entered into carbon credit trading advisory services is:
(a) ICICI Bank
(b) UCO Bank
(c) IDBI Bank
(d) Yes Bank
(e) None of these
382. The Financial Year of RBI starts from :

(a) 1st April
(b) 1st June
(c) 1st July
(d) 1st December
(e) None of these
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383. The major shareholders in Asset Reconstruction Company of India Limited (ARCIL) other
than SBI are:
(a) IDBI & Canara Bank
(b) ICICI & HDFC
(c) IDBI & HDFC
(d) IDBI & ICICI
(e) None of these
384. When a country decides to conduct trade on favorable terms with another country for
mutual benefits, this is called:
(a) FTA System
(b) MFN Status
(c) Bilateral Trade
(d) Counter Trade
(e) None of these
385. When banks invest their deposit accruals in Government securities, it is called:
(a) Asset Securitization
(b) Hedging
(c) Narrow Banking
(d) Forfaiting
(e) None of these
386. Banking Sector will fall under which of the following:

(a) Agricultural Sector
(b) Service Sector
(c) Manufacturing Sector
(d) Industrial Sector
(e) None of these
387. "Working Capital" means:
(a) Own Capital of the Proprietor
(b) Borrowed Capital
(c) All Assets minus All Liabilities
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(d) Current Assets minus Current Liabilities
(e) None of these
388. Concept of "Service Area Approach" was recommended by :

(a) R.V. Gupta
(b) A.D. Gorawala
(c) Dr. P.D. Ojha Committee
(d) Dr. Kalia
389. Electronic Fund Transfer scheme of RBI has been renamed as :

(a) Clearing
(b) Core Banking Solutions
(c) Real Time Gross Settlement
(d) National Electronic Fund Transfer
(e) None of these
390. External Commerical Borrowings (ECBs) form part of :
(a) Current Account
(b) Capital Account
(c) Either A or B
(d) Balance of Payments
(e) None of these
391. RBI absorbs liquidity in the system through :

(a) Repo
(b) Reverse Repo
(c) Both A and B
(d) Either A or B
(e) None of these
392. Mutual Funds are required to be registered with :
(a) AMFI
(b) SEBI
(c) IBA
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(d) RBI
(e) None of these
393. Reserve Bank of India has not authorized banks to approve limits relating to :
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Foreign Exchange Operations
394. The type of charge created on LIC Policy is :

(a) pledge
(b) hypothecation
(c) assignment
(d) All of these
(e) None of these
395. Usually, the validity period of an Income Tax Refund Order is :
(a) 1 months
(b) 2 months
(c) 3 months
(d) 15 months
(e) None of these
396. What is " Stagflation":
(a) inflation with growth
(b) deflation with growth
(c) inflation after deflations
(d) inflation with depression
(e) None of these
397. Which is the first bank in India to launch its interactive banking service through Dish TV:
(a) SBI
(b) ICICI Bank
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(c) HDFC Bank
(d) Axis Bank
(e) None of these
398. Where the signature of the drawer of a cheque is not genuine, such a cheque is called:
(a) post dated cheque
(b) stale cheque
(c) forged cheque
(d) All of these
(e) None of these
399. Account payee crossing is addressed to:
(a) collecting banker
(b) paying banker
(c) payee
(d) All of these
(e) None of these
400. Payment of a cheque may be countermanded by the:

(a) payee
(b) drawer
(c) true owner
(d) drawee
(e) None of these
401. A Usance Bill when presented for acceptance has to be accepted/dishonoured within:
(a) 24 hours
(b) 36 hours
(c) 48 hours
(d) 60 hours
(e) None of these
402. For violation of FEMA, prosecution is done by:

(a) RBI
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(b) DGFT
(c) FEDAI
(d) Enforcement Directorate
(e) None of these
403. The term '' Paper Gold '' means :

(a) paper currency fully backed by gold reserve
(b) paper currency partially backed by gold reserve
(c) international paper currency fully convertible into gold.
(d) special drawing rights of the IMF
404. The previous name of state Bank of India was:

(a) National Bank of India
(b) Premier Bank of India
(c) Imperial Bank of India
405. Reserve Bank of India was nationalised in :

(a) 1945
(b) 1949
(c) 1950
(d) 1955
406. Prior to the establishment of the Reserve Bank of India , the government banking business
was conducted by :
(a) Bank of India
(b) Central Bank of India
(c) National Bank of India
(d) Imperial Bank of India
407. Which of the following is not a general credit control measure:

(a) Bank rate
(b) variable reserve ration
(c) open market operation
(d) regulation of margin requirements on advance against agricultural commodities
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408. When was the currency system in India converted into decimal system :
(a) From 1st April, 1957
(b) From 1st April, 1959
(c) From 1st April , 1961
(d) From 1st April, 1963
409. Statutory cash reserve ratio for non- scheduled banks is regulated by the Reserve Bank of
India under power conferred upon it by :
(a)Reserve Bank of India Act, 1934
(b) Banking Regulation Act , 1949
(c) companies Act , 1956
(d) Union Ministry of finance
410. Which of the following is not a member of the world Bank group :
(a) International Bank for Reconstruction and Development
(b) International Development Association
(c) Bank of International Settlement
(d) International Finance Corporation
411. Kisan credit card can be used for financing :

(a) production needs
(b) Consumption needs
(c) Both A and B
(d) None of these
412. Who is the authorised to sign ' one - rupee ' note ;
(a) Secretary , Ministry of Finance
(b) RBI Governor
(c) Primer minister
(d) Finance Minister
413. Nominee 's Signature is to be obtained on :

(a) Account Opening form
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(b) Nomination Form
(c) Speciman Signature Card
(d) Need not to be obtained
414. Who decide on the value and volume of bank notes to be printed and on what basis :
(a) Finance Ministry
(b) Planning commission
(c) RBI
(d)stock exchange
415. Indian Banking Regulation Act was passed in the year :

(A) 1971
(b) 1969
(c) 1949
(d) 1947
416. Authorised, subscribed and paid up share capital of Reserve Bank of India is :
(a) 1 crore
(b) 5 crore
(c) 50 crore
(d) 100 crore
417. Cash Reserve Ratio in maintained in the form of :

(a) Government Securities
(b) Balance with Reserve Bank of India
(c) Balance with State Bank of India
418. Pledge means :

(a) advance against goods
(b) hypothecation of goods
(c) bailment of goods as security for payment of a debt or performance of a promise.
(d) open limits
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419. Currency Swaps are:

(a) common currency transactions involving borrowing and lending
(b) currency loans from a froeign country
(c) back to back loan
420. The largest financial conglomerate of India is :

(a) HDFC Bank
(b) ICICI Bank
(c) IFCI
(d) SBI
421. The single largest component of external debt is:

(a) Commercial borrowings
(b) Multilateral debt
(c) Short term Debt
(d) NRI deposits
422. Which category of accounts are opened under financial Inclusion :

(a) Senior citizens deposit
(b)Super Saver Accounts
(c) No- Fill Accounts
(d) SBI Vishesh
423. Who was the first Indian Governor of the Reserve Bank of India:
(a) C.D. Deshmukh
(b) Schindra Ray
(c) S. Mukherjee
(d) I.G. Patel
424. Hypothecation is :
(a) a transaction of conditional sale
(b) a legal transaction whereby goods may be mad available as security for a debt.
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(c) Tranfer of ownership by the borrower to the lender
425. stop payment instructions remain in force for a period of :

(a) one year
(b) three months
(c) six months unless revoked by the customer
(d) until the account is closed by the customer
426. The beneficiary of the LC draws a bill of exchange on :

(a) Issuing Bank
(b) Advising Bank
(c) Negotiating Bank
(d) none of these
427. Village Adoption Scheme means :

(a) adopting a village for opening the branch of the bank
(b) adopting a village for intensive deposit mobilisation campaign
(c) Selection of a village for intensive deposit mobilisation compaign
428. ''BCSBI'' Stands for :

A. Banking Codes and Standards Boards of India
B. Board Code for Standards in Branches
C. Board Code for Standard in Banking
D. None of the above
429. As per KYC policy the list of terrorist organizations is supplied to the Bank by the :
A. Government of India
B. CIBIL
C. IBA
D. RBI
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430. As per RBI directives which of the following areas / functions cannot be outsourced by the
Bank:
A. opening and closing of accounts
B. cash collection from the parties
C. recovery of bad loans
D. credit and debit cards
431. Asset Reconstruction Company is associated with :

A.DICGC
B. ECGE
C. NPA
D. SEB
432. Authorized of Trade of a country is euipment to :

A. Reserve Bank of India
B. Government of India
C. Individual Banks
D. FEDAI
433. Banker's right of set off can be exercised on receipt of :

A. Income Tax Attachment order
B. Garnishee Order
C. Both A and B
434. Banks should not grant new loans for purpose of minor irrigation in ;
A. White Block
B. Grey Block
C. Dark Block
D. All of these
435. Closed Economy is one in which :

A. only export takes place
B. money supply is fully controlled
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C. deficit financing takes place
D. neither export nor import takes place
436. Commercial Papers are secured by:

A. floating charge on stockes
B. unsecured loans
C. fixed assets
D. book - debts
437. Demand draft for Rs. 20,000 and above :

A. can be paid in cash
B. should not be paid in cash
C. mode of payment will depend on the status of the customer
438. Deposits under NRF/FCNB accounts are linked to :

A. Base Rate
B. SIBOR
C. LIBOR
D. None of these
439. Escrow account is useful/ helpful to:

A. importers
B. exporters
C. both A and B
D. None of these
440. FEMA provides that a person becomes a resident if he stay in India for ...... or more in
the previous year.
A. 180 Days
B. 181 Days
C. 182 Days
D. 183 Days
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441. Head Office of the Asian Development Bank located in :
A. Jakarta
B. manila
C. Nairobi
D. Tokyo
442. In respect of ' ' Door Step Banking ' ' , RBI has issued directives under the provisions of :
A. Reserve Bank of India Act, 1934
B. Negotiable Instruments Act, 1881
C. Banking Regulation Act, 1949
D. Shops and Establishments Act
443. The methods of credit control by the Reserve Bank of India may be broadly divided into
two parts. These are :
(a) open and close
(b) quantitative and qualitative
(c) monetary and fiscal
(d) rural and urban
444. What is the minimum number of directors in a public limited company :

(a) 2
(b) 3
(c) 5
(d) 7
445. 'Pure Banking,' Nothing Else' is a slogan raised by :

(a) ICICI Bank
(b)HDFC Bank
(c) SBI
(d) UTI Bank
446. 'Smart Money ' is a term used for :

(a) Internet Banking
(b) Cash with Public
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(c) Cash with Bank
(d) Credit Card
447. The government has allowed issue of Long -term Bonds for Insurance Companies and
others upto :
(a) 10 years
(b) 15 years
(c) 25 years
(d) 30 years
448. Discount on issue of shares is a:

(a) revenue loss
(b) capital loss
(c) deferred revenue expenditure
(d) revenue and capital loss both
449. Which of the following committee recommanded a separate Act, for securitisation and
Reconstruction of financial Assets and Enforcement of security Interest Act.
(a) Rangarajan committee
(b) T.R. Andhyarajuna Committee
(c) Narashimham Committee
(d) Nayak Committee
450. What are the Rights available to a secured creditor :

(a) To sell the assets
(b) File application with DRT for recovery of full or remaining dues.
(c) To Proceed against the guarantee
451. The significance of index linked bonds is :

(a) It provides protection against inflation rate rise
(b) It is inbuilt in the process
(c) Both A and B
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452. Which of the following is not credit substitute :

(a) commercial Paper
(b) Mortgage Loan
(c) Corporate Bond
(d) Certificate of Deposit
453. The difference between a bond and Loan is :

(a) The loan has normally fixed rate of interest. Bond price is depended on market interest rate
movements
(b)Bonds are more liquid
(c) Yield to maturity value can be known easily in a bond
454. Advanced payment of tax is in the nature of :

(a) Asset
(b) Liability
(c) Prepaid Expenses
(d) Revenue Expenses
455. CSO has changed its base year National Income estimation. The new base year is :
(a) 1990-91
(b) 2004 -05
(c) 1994-95
(d) 1995-96
456. First share market in India was established in :

(a) Delhi
(b) kolkata
(c) Mumbai
(d) Chennai
457. "Banking Ombudsman" means a person :
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A. appointed to settle dispute between employee and management
B. to whom customer can approach for redressal of his grievances
C. appointed to recover dues from defaulting borrowers
D. none of the above
458. "Bid - Ask Price " is :

A. quotation of the foreign currency
B. rate at which the traders bid for foreign currency
C. rate at which the traders ask for foreign currency
459. " Hundi " is a:

A. Draft
B. cheque
C, Bill of Exchange
D. Promissory Note
460. " Islamic Banking " is a term used for :

A. interest free deposits , investment
B. covering Banking of Muslims
C. covering Islamic nations
461. Banking Industry has been declared as public utility service for purpose of ;
A. Negotiable Instruments Act, 1881
B. Reserve Bank of India Act, 1934
C. Banking Regulation Act, 1949
D.Industrial Disputes Act
462. Cash drawings under kisan cards can be permitted at:

A. designated branches
B. at issuing branches
C. all branches
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D. none of these
463. Currency Chest is the property of :

A. State Bank of India
B. Government of India
C. Reserve Bank of India
D. None of these
464. PAN number is required for all transaction above :

A. Rs. 25,000
B. Rs. 50,000
C. Rs. 1 lac
D. Rs. 10 lacs
465. The government has stipulated that quoting permanent Account nmber is mandatory for :
A. Current accounts
B. Demat Accounts
C. Terms Deposits
D. Savings bank
466. As per the RBI annual report 2014-15, how many metric tonnes of Gold is held by the
Central Bank ?
(a) 292
(b) 850
(c) 145
(d) 557
(e) None of these
467. Which of following is not a part of the scheduled banking structure in India ?
(a) Money lenders
(b) Public sector banks
(c) Private sector banks
(d) Regional rural banks
(e) None of these
Page 93
468. For recapitalization of Public Sector Banks, the World Bank has decided to provide funds
to India. These funds will be made available in the form of ______________.
(a) Term loan
(b) Soft loan
(c) Emergency aid
(d) Grants
(e) None of these
469. Which of the following terms is NOT used in Banking Finance ?

(a) Bid price
(b) Jacksonian Seizure
(c) Call Option
(d) Bluechip
(e) None of these
470. Banks borrow money from the RBI on which of the following rates ?
(a) Bank rate
(b) CRR
(c) SLR
(d) Repo Rate
(d) None of these
(e) None of these
471. Capital market Regulator is ____________.
(a) RBI
(b) NSE
(c) BSE
(d) SEBI
(e) None of these
472. Who was elected as the Vice Chairman of the Bank of International Settlements (BIS) in
November 2015 ?
(a) C. Rangarajan
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(b) Raghuram Rajan
(c) Kaushik Basu
(d) Bimal Jalan
(e) None of these
473. Which of the following has become the first comercial state owned Bank to issue green
bonds ?
(a) Yes Bank
(b) HDFC
(c) Axis Bank
(d) IDBI
(e) None of these
474. Who among the following has been appointed as executive director on the board of the
International Monetary Fund (IMF) ?
(a) Rakesh Mohan
(b) Subir Gokarn
(c) Madam Christien Lagarde
(d) Urjit Patel
(e) None of these
475. ____________ launched Neev fund to help low-income states. It is the first low-income
state infrastructure equity partnership in London.
(a) ICICI Bank
(b) Axis Bank
(c) SBI
(d) HDFC
(e) None of these
476. Non-banking financial intermediators that provide services similar to traditional commerical
banks outside the regulatory control of the central banks, known as the
(a) Local area banks
(b) Corporative banks
(c) Shadow banks
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(d) Private banks
(e) None of these
477. The ratio of deposits in current and savings account to total deposits of a bank, is known
as
(a) NPA ratio
(b) NIM ratio
(c) CD ratio
(d) CASA ratio
(e) None of these
478. According to Reserve Bank of India (RBI) guidelines, payment banks are not permitted to
______________.
(a) set-up branches/ATMs
(b) undertake utility bill payment services
(c) issue debit cards
(d) distribute insurance/mutual fund/pension products
(e) None of these
479. According to the Regional Rural Banks (Amendment) Act 2015, the cap on authorised
capital of RRBs has now been raised from Rs 5 crore to ________________.
(a) Rs 2000 crore
(b) Rs 500 crore
(c) Rs 2500 crore
(d) Rs 1500 crore
(e) None of these
480. The first ATM was set-up in Mumbai in 1987 by _____________.

(a) ICICI Bank
(b) SBI
(c) HDFC Bank
(d) HSBC Bank
(e) None of these
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481. Union Bank of India is one of the major public sector banks in India. It is headquartered in
_____________.
(a) Mumbai
(b) Bengaluru
(c) New Delhi
(d) Chennai
(e) None of these
482. The Asian Development Bank (ADB) is a regional development bank established in 1966.
It is headquartered in ________________.
(a) Shanghai
(b) Metro Manila
(c) Kathmandu
(d) Jakarta
(e) None of these
483. The segment of money market which pertains to day-to-day funds requirements of the
bank, is known as ______________.
(a) Call Money market
(b) Capital market
(c) Mutual fund market
(d) Index funds market
(e) None of these
484. The 'Bank rate' is periodically announced by the ________________.
(a) Indian Banks Association
(c) Reserve Bank of India
(d) Ministry of Finance
(e) None of these
485. Which of the following is the minimum lending rate which the banks can charge their
customers?
(a) Reverse repo rate
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(b) Bank rate
(c) Repo rate
(d) Base rate
(e) None of these
486. The RBI tracks retail inflation in deciding its monetary policy action. The retail inflation in
the month of jun stood at an eight-month high of ____________.
(a) 5.01 per cent
(b) 7.6 per cent
(c) 6.1 per cent
(d) 5.4 per cent
(e) None of these
487. Which of the following banks has launched 'Dhanchayat', an educational film to raise
awareness on the dangers of borrowing money from unorganized sources ?
(a) ICICI Bank
(b) SBI
(c) HDFC Bank
(d) Axis Bank
(e) None of these
488. In the field of banking, which of the following, transactions done through a mobile device
will be termed as mobile banking ?
(a) Loan application
(b) Cheque book request
(c) Balance inquiry
(d) Fund transfer
(e) All the above
489. Which of the following is a secondary function of commerical banks ?

(a) Taking deposits
(b) Facilitating overdraft
(c) Buying/selling securities
(d) Providing money on demand
(e) None of these
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490. Who among the following has been nominated by the Central Govt to be director on the
Central Board of Directors of the RBI with immediate effect ?
(a) UK Sinha
(b) Arvind Subramanian
(c) Rajiv Mehrishi
(d) Ajay Tyagi
(e) None of these
491. The IndusInd Bank has raised Rs. 5,081 cr by issuing six crore new shares via QIP and
preferential issuances. Here, the term QIP stands for ________________________.
(a) Qualified Institutional Purchase
(b) Qualified Institutional Procurement
(c) Qualified Institutional Placement
(d) Qualified Institutional Planning
(e) None of these
492. The infrastructure financier IDFC will start banking operations from Oct 1. Who among the
following will be the chairman of the bank ?
(a) Vikram Limaye
(b) Vinod Rai
(c) Anil Baijal
(d) Rajiv Lall
(e) None of these
493. Which of the following statements about demand drafts (DD) is NOT correct ?
(a) DD is a type of cheque
(b) A DD is payable on demand
(c) DD is a negotiable instrument
(d) If a Bank fails to honour the DD, the Bank is liable for it.
(e) None of these
494. A stop-payment request can be put in the case of which of the following instrument ?
(a) Demand Draft
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(b) Cheque
(c) Money order
(d) NEFT
(e) None of these
495. Which of the following is NOT a part of the techniques/instruments used by the RBI for
money/credit control ?
(a) Sole authority for issuing banknotes
(b) Refinance
(c) Bank rate
(d) Open Market Operations
(e) None of these
496. Name the RBI committee on the urban cooperative bank (UCB) system, on whose
recommendations the central bank has asked the govt to amend co-operative bank laws.
(a) SS Mundra
(b) Urjit Patel
(c) R Gandhi
(d) HR Khan
(e) None of these
497. The qualitative instruments used by the RBI to implement its monetary policy does not
include which of the following?
(a) Moral suasion
(b) Selective credit control
(c) Consumer credit regulation
(d) Margin requirement
(e) None of these
498. Which of the following banks has launched its 'Saral-Rural Housing Loan' at base rate of
9.7 per cent for borrowers from rural areas ?
(a) ICICI Bank
(b) HDFC Bank
(c) Axis Bank
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(d) SBI
(e) None of these
499. Who among the following is NOT a deputy governor of the RBI as of now ?
(a) HR Khan
(b) Urjit R. Patel
(c) R Gandhi
(d) Anand Sinha
(e) None of these
500. Which of the following is one of the public sector banks nationalized in 1980 in the second
phase of nationalization ?
(a) Allahabad Bank
(b) Bank of Baroda
(c) Corporation Bank
(d) Canara Bank
(e) None of these
501. The Asian Development Bank (ADB), established to facilitate economic development
in Asia, is headquartered in ________________.
(a) Bangkok, Thailand
(b) Tokyo, Japan
(c) Manila, philippnies
(d) Jakarta, Indonesia
(e) None of these
502. Currently, the reserve Bank of India (RBI) acts as banker to all the State Govt In
India, except _____________.
(a) Nagaland
(b) Kerala
(c) Sikkim
(d) Goa
(e) None of these
Page 101

503. At present, K V Kamath is the president of the _____________________.
(a) Asian Infrastructure Investment Bank (AIIB)
(b) New Development Bank (NDB)
(c) International Bank for Reconstruction & Development (IBRD)
(d) Asian Development Bank (ADB)
(e) None of these
504. The Banking Regulation Act that governs commerical banks does not apply fully on
which of the following as of now ?
(a) RRBs
(b) Foreign Banks
(c) Private Banks
(d) Cooperative Banks
(e) None of these
505. As per the RBI's guidelines, banks can process contactless transactions below what
amount without a personal identification number (PIN)?
(a) Rs. 5,000
(b) Rs. 4,000
(c) Rs. 3,000
(d) Rs. 2,000
(e) None of these
506. There are two parts of banks balance sheet -assets & liabilities. The assets,
everything that the bank owns or is owned, does not include _____________.
(a) loans made by the bank
(b) bank branch buildings
(c) cash in its vaults
(d) govt bonds
(e) None of these
507. Which of the following banks has announced to buy domestic online retail broking
major sharekhan for an undisclosed sum of money recently?
(a) HDFC Bank
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(b) BNP Paribas
(c) ICICI Bank
(d) Federal Bank
(e) None of these
508. Which of the following does NOT come under the RBI quantitative measure of credit
control?
(a) SLR
(b) CRR
(c) Bank Rate
(d) Moral Suasion
(e) None of these
509. The Green Climate Fund (GCF) has accredited which of the following as an
implementing entity for undertaking climate change-related projects in India ?
(a) RBI
(b) SIDBI
(c) SBI
(d) NABARD
(e) None of these
510. Which of the following was the first bank to introduce the ATM concept in India way
back in 1987 ?
(a) HDFC Bank
(b) ICICI Bank
(c) HSBC
(d) CITI Bank
(e) None of these
511. ____________ provides insurance cover to the deposits with the bank in our
country.
(a) SWIFT
(b) DICGC
(c) ECGC
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(d) National Insurance Co
(e) None of these
512. What is the full form of CDR as used in the field of banking/finance ?
(a) Corporate Deposit Restructuring
(b) Corporate Debt Restructuring
(c) Company Deposit Restructuring
(d) Company Debt Restructuring
(e) None of these
513. Which of the following is NOT an electronic banking delivery channel ?

(a) Mobile banking
(b) Internet banking
(c) Telephone banking
(d) ATM
(e) None of these
514. The govt is considering permitting 100% foreign investment in white-label ATM
operations. The white-label ATM are set up by _______________.
(a) RBI directly
(b) state govts
(c) private sector banks
(d) private non-bank companies
(e) None of these
515. The govt has announced appointment of MD & CEO of five public sector lender.
which of the following is NOT correct in this regard?
(a) Rakesh Sharma- Canara Bank
(b) PS Jayakumar- Bank of Baroda
(c) MO Rego- Bank of India
(d) Usha Ananthasubramanian- Allahabad Bank
(e) None of these
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516. National Rural Development Institute is located at _______________.
(a) Gujarat
(b) Delhi
(c) Hyderabad
(d) Mumbai
(e) None of these
517. What is the new base year of Consumer Price Index (CPI) ?
(a) 2009
(b) 1985
(c) 2001
(d) 2012
(e) None of these
518. Who is the first Vice-chairperson of the newly constituted NITI Aayog ?
(a) Jatin Das
(b) Arvind Panagariya
(c) Rajiv Mehrishi
(d) Ashwani Lohani
(e) None of these
519. Tax Information Network (TIN) is associated with _____________.
(a) Consumption Tax
(b) Dividend Tax
(c) Fuel Tax
(d) Income Tax
(e) None of these
520. Silk and Art Silk Mills Research Association is located in ______________.
(a) Delhi
(b) Mumbai
(c) Nepal
(d) Jhansi
(e) None of these
Page 105
521. India's position in the world Bank's doing business rankings has moved up how
many places in this year ?
(a) 2
(b) 4
(c) 6
(d) 8
(e) None of these
522. The Urban Cooperative Banks are controlled by two entities. One of them is the
Reserve Bank of India (RBI) and the other is/are.
(a) Union Finance Ministry
(b) State Govts
(c) SIDBI
(d) NABARD
(e) None of these
523. The Deutsche Bank, Germany's biggest lender, appointed who among the following
as its new CEO on 7 Jun?
(a) Anshu Jain
(b) Juergen Fitschen
(c) John Cryan
(d) Paul Achleitner
(e) None of these
524. A _____________ is a negotiable financial instrument issued by a bank to represent
a foreign company's publicly traded securities.
(a) Participatory note
(b) Buyer's Credit
(c) Depository receipt
(d) Cross-listed stock
(e) None of these
525. MK Sharma has been appointed as the non-executive Chairman of Which of the
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following Private sector banks in india ?
(a) Axis Bank
(b) Federal Bank
(c) ICICI Bank
(d) HDFC Bank
(e) None of these
526. A universal bank does not undertake which of the following activities ?
(a) Insurance
(b) Investment Banking
(c) Development Banking
(d) Commercial Banking
(e) None of these
527. MS Raghavan is the present chairman and managing director of which of the
following public sector banks ?
(a) Andhra Bank
(b) IDBI Bank
(c) Bank of India
(d) Indian Bank
(e) None of these
528. The portion of the commercial bank's reserves that are maintained in accounts with
the central bank plus the total currency circulating in the public is termed as
_____________.
(a) hot money
(b) call money
(c) reserve money
(d) high-powered money
(e) None of these
529. What is the new Reverse Repo rate after the RBI's Jun 2 policy review ?
(a) 6 per cent
(b) 6.25 per cent
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(c) 6.50 per cent
(d) 6.75 per cent
(e) None of these
530. The deposit of cash under cash receive ratio (CRR) requirement with the RBI is
a_______.
(a) discretionary requirement
(b) voluntary requirement
(c) mandatory requirement
(d) contributory Requirement
(e) None of these
531. ________ Bank became the second Indian bank after 'Yes Bank' & the first
commercial
state-owned bank to issue green bonds worth $350 million.
(a) HDFC
(b) SBI
(c) AXIS
(d) IDBI
532. Green bonds are issued by:

(a) World bank
(b) Corporations
(c) Government agencies & Municipalities
533. Lakshmi Vilas Bank has recently introduced its co-branded credit card in
association with ______.
(a) PNB Card
(b) OBC Card
(c) SBI Card
(d) YES Card
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534. ________ Bank has recently opened an international banking unit at the International
Financial Services Center in Ahmadabad.
(a) ICICI
(b) Federal
(c) YES
(d) AXIS
535. ___________ became the new chairman of BIS(Bank of International Settlement).

(a) Harun R. Khan
(b) Urjit R. Patel
(c) R. Gandhi
(d) Raghuram Rajan
(e) S.S. Mundra

536. To help NRI customers in the gulf to carry out their remittances instantly &
more
conveniently, a leading UAE-based bank has announced partnership
deal with ________.

(a) Punjab National Bank
(c) Oriental Bank of Commerce
(d) Punjab & Sind Bank
537. Headquartered of BIS is located at_______________.

(a) Switzerland
(c) Germany
(b) America
(d) Paris
538. The Asian Development Bank __________ recently announced a five-year, $16
billion
partnership.
(a) China
(b) Dubai
(c) Japan
(d) Canada

539. Axis Bank recently opened a representative office in ____________.
(a) Singapore
(b) Hong Kong
(c) Dhaka
(e) Shanghai
Page 109

540. __________ Bank has signed a pact with the London Stock Exchange (LSE).
(a) Canara
(b) Dena
(c) Yes
(d) Andhra
541. Subir Gokarn was recently appointed as an Executive Director on the board of
_________.
(a) World Bank
(b) BIS
(c) WTO
(d) IMF

542. The Reserve Bank of India has recently imposed Rs 1-crore penalty on
_____________.
(a) IDBI
(b) Bandhan Bank
(c) Dhanlaxmi Bank
(d) Lakshmi Vilas Bank

543. The newly launched ____________ Bank has been included in the second schedule
list.
(a) Andhra
(b) HDFC
(c) Yes
(d) Bandhan
544. Royal Enfield, the two wheeler arm of Eicher Motors, plans to set up its third plant
in ________.
(a) West Bengal
(b) Gujarat
(c) Tamil Nadu
(d) UP

545. In India, RBI started this scheme in ____________.
(a) 1856
(b) 1890
(c) 1745
(d) 1995
Page 110

546. Which country has won the top UNESCO prize Award of Excellence 2015?
a) USA
b) Japan
c) Sri Lanka
d) India
e) None of these
547. The NASAs spacecraft which discovered the presence of neon on the moons
atmosphere is_____________?
a) LADEE
b) LADER
c) LADAA
d) LADSR
e) None of these
548. Union government recently launched a telemedicine initiative under the name?
a) AYUSH
b) e-Swasthya
c) Sehat
d) Tele Medicine
e) None of these
549. World Water Day is Observed on _____________.
a) 1st December
b) 24th March
c) 5th September
d) 22nd March
e) None of these
550. Name the largest lake in India ____________.

a) Chandra Taal
b) Wular Lake
Page 111

c) Dal Lake
d) Pandoh Lake
e) None of these
551. What is the name of America-Canada boundary line ____________?
a) Parallel Line 49
b) Parallel Line 45
c) Parallel Line 31
d) Parallel Line 38
e) None of these
552. Which among the following is Indias highest foreign exchange earner sector?
a) Tourism
b) Jewelry Export
c) Petroleum Products Export
d) Engineering Exports
e) None of these
553. The Buchi Babu Memorial Trophy is associated with which sports?
a) Badminton
b) Cricket
c) Hockey
d) Tennis
e) None of these
554. India's first multi social payment app 'Ping Pay' launched by _____________?
a) Union Bank
b) Corporation Bank
c) SBI
d) ICICI
e) Axis Bank
555. What is the maximum amount of investment under Kisan Vikas Patra (KVP)?
a) No limit
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b) Rs 10,000
c) Rs 50,000
d) Rs 1 lakh
e) Rs 5000
556. Dena Bank is a:

a) Private Sector Bank
b) Public Sector Bank
c) Foreign Bank
d) None of The Above
557. Dena Bank was founded on:
a) 26th March, 1938
b) 27th June, 1938
c) 26th May, 1938
558. Initially, Dena Bank was known as:
a) Dena Banking Company Limited
b) Devi Nal Banking Company Limited
c) Devkaran Nanjee Banking Company Limited
559. The logo of Dena Bank contains image of:

a) Goddess Durga
b) Goddess Lakshmi
c) Bharat Mata
560. Head Office of Dena bank is located at:
a) Mangalore, Karnataka
b) Mumbai, Maharashtra
c) Kolkata, West Bengal
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561. Punch Line of Dena Bank is:

a) Together We Prosper
b) Trusted Family Bank
c) Smart Way to Banking
562. Karur Vysya bank was started in the year ______in Karur:
a) 1916
b) 1900
c) 1895
563. Current MD and CEO of UCO Bank is:
a) Ravi Krishan Singh
b) Ravi Krsihan Malhotra
c) Ravi Krishan Takkar
564. UCO stands for:

a) Unique Commercial Bank
b) United Commercial Bank
c) Universal Commercial Bank
565. Headquarter of UCO bank is situated at:
a) Bengaluru, Karnataka
b) Kolkata, West Bengal
c) Manipal, Karnataka
566. Bandhan Bank Limited was incorporated on _______as a wholly owned subsidiary
of Bandhan Financial Holdings Limited.
a) 23rd December, 2014
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b) 25th December, 2014
c) 29th December, 2014
567. ______banks is the first bank to be set up in eastern part of India after
Independence:
a) SBI
b) Bandhan Bank
c) Axis Bank
568. MD and CEO of Bandhan Bank is:
a) Chandra Shekhar Ghosh
b) C.M. Dixit
c) Pradip Kumar Saha
569. _____ bank is the only Greenfield Bank licence awarded by the RBI in the last two
decades:
a) NABARD
b) SBI
c) Yes Bank
570. _____bank became the first Indian Bank, and the third globally in the banking
Industry to receive certification for its "Complaints Management System (ISO
10002:2004)" by the British Standards Institution (BSI) on August 25, 2010:
a) SBI
b) Yes Bank
c) NABARD
571. Which among the following is correct about the 'Parties to Cheque':
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a) Drawer - The person who signs the cheque and order for payment
b) Drawee - It is always bank on which cheque is drawn and is ordered to pay the amount of
cheque
c) Payee - The person to whom the cheque is payable
d) All of The Above
e) None of The Above
572. _____Cheque is an uncrossed cheque which is payable at counter of the bank:

a) Bearer Cheque
b) Cross Cheque
c) Open Cheque
d) All of The Above
573. When a cheque is payable to person named in the cheque or to his order is called
______. It can be transferred only by endorsement and delivery:
a) Cross Cheque
b) Bearer Cheque
c) Order Cheque
d) Blank Cheque
574. Which among the following characteristics is wrong about the 'Crossed Cheque':
a) It can only be credited to the account of the payee
b) It can't be encashed at the counter of the bank
c) It is the cheque on which two parallel transverse lines are drawn across the top left, with or
without the word - & Co, Not Negotiable, A/c Payee
d) All of The Above
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575. The validity of Stale Cheque is for _____months. If cheque is not presented within
the _____months, it got expired and becomes the Stale Cheque:
a) 3.5 months
b) 3 months
c) 4 months
d) 6 months
576. Stale cheque is also known as:

a) Matured Cheque
b) Outdated Cheque
c) Old Cheque
d) Sleepery Cheque
577. Which among the following definitions is correct :

a) Ante Dated Cheque - A cheque contains the date on which it is drawn. If ti bears a prior date
or back date, it is called Ante - Dated Cheque. Bank will honor this cheque until it exceed the
three months i.e. stale period of cheque.
b) Post Dated Cheque - If the cheque bears the date later than the date on which it is drawn, is
called Post Dated Cheque. This cheque can't be honored before the date written on it.
c) Multilated Cheque - A cheque which is torn into pieces is called Multilated cheque.
d) All of The Above
578. ______are debt instruments which allow the companies or government to raise
funds only by incurring debt and lender is guaranteed of a fixed repayment (Principle and
Interest):
a) Bonds
b) Debentures
c) Shares
d) All of The Above
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579. NRE Account stands for:

a) Non Resident External Account
b) Non Reliable External Account
c) Non Relational External Account
d) Non Recurring External Account
580. Which among the following is correct about the NRE Account:
a) The Non Resident External Account (NRE Account) is a Savings/Current.
b) Such accounts can be opened only by the NRI.
c) Balance held in NRE account are fully repatriable.
d) With effect from March 1, 2014 interest rates offered by banks on NRE deposits can't be
higher than those offered by them on comparable domestic rupee deposits.
e) All of The Above
f) None of The Above
581. Which among the following is correct about 'White Label ATM':
a) These ATMs are set up, owned and operated by non - bank entities
b) These ATMs have been incorporated under Companies Act, 1956
c) RBI's approval is must for setting up of these types of ATMs.
d) All of The Above
582. _______ATMs are owned and maintained by service provider whereas bank whose
brand is used on ATM takes care of cash management and network connectivity:
a) White Label
b) Brown Label
c) Online ATM
d) Stand Alone ATM
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583. ______ATMs are not connect with any ATM network hence their transactions are
restricted to the ATM's branch and link branches only:
a) White Level ATM
b) Brown Level ATM
c) Off Line ATM
d) Stand Alone ATM
584. Off - site ATMs could be installed in:
a) Shopping Malls and Shopping Markets Only
b) Airports
c) Hospitals and Business Areas Only
d) All of The Above
585. If an organization is unable to pay debt then this condition is known as:
a) Liquidation
b) Bankruptcy
c) Fraud
d) Depression
586. ______is a rate at which RBI lends money to commercial banks without any security.
It is used for Long Term Borrowing and this rate is not the main tool to control money
supply:
a) Bank Rate
b) CRR
c) Repo Rate
d) Reverse Repo Rate
587. _____rate is the main tool to Control Money Supply:

a) Repo Rate
b) Bank Rate
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c) Reverse Repo
d) MSF
588. CTS stands for:
a) Cheque Traveller System
b) Cheque Transfer System
c) Cheque Truncation System
d) Cheque Teminology System
589. Acquiring of the properties of person after his death by the government, in case
there is no legal heir or nominee of that person then this type of property is termed as:
a) Goverment Acquisition
b) Escheat
c) Custody
d) Open Property
590. A person who receives a document for value, before it was due and in good faith,
without notice of any defect in it, he is called:
a) Guarantor
b) Holder in Due Course
c) Nominee Party
d) Subrogating Party
591. Paper Based Payments instruments Includes:

a) Cheques only
b) Drafts only
c) Treasury Bills
d) Both (a) and (b)
Page 120
592. Paper Based Payments instruments such as cheques, drafts etc. accounts for nearly
______of the volume of total non - cash transactions in the country.
a) 50%
b) 70%
c) 60%
593. Reserve Bank of India had introduced ______technology for speeding up and
bringing in efficiency in processing of cheques:
a) MICR
b) OMR
c) OCR
594. The Initiatives in Electronic Payments taken by RBI in _____and _____focused on
technology based solutions for the improvement of the payments:
a) Mid 80s and Early 90s
b) Mid 70s and Early 80s
c) Mid 70s and Early 90s
595. ECS stands for:

a) Electronic Cheque Service
b) Electronic Clearing Service
c) Electronic Customer Service
596. RBI introduced the ECS (Credit) scheme during the 1990s to handle and facilitate:
a) bulk payment requirements like salary and interest etc.
b) repetitive payment requirements like dividend payments etc.
c) customer accounts to be credited on the specific value date
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d) All of The Above
597. During September, 2008, RBI launched a new service known as __________ at
National Clearing Cell (NCC), Mumbai :
a) National Electronic Customer Satisfaction Service
b) National Electronic Clearing Speed Service
c) National Electronic Clearing Service
598. ECS (Debit) Scheme was introduced by RBI to provide:

a) a faster method of effecting periodic and repetitive collections of utility companies
b) a faster method of effecting periodic and repetitive collections of private banks
c) a faster method of effecting periodic and repetitive collections of all banks
599. Which among the following is correct about Electronic Funds Transfer:
a) This retail funds transfer system introduced in the Late 1990s.
b) This system enabled a account holder of a bank to electronically transfer funds to another
account holder with any other participating bank.
c) It is available across 15 major centers in the country, this system is no longer available for
use by general public, for whose benefit a feature - rich and more efficient system is now in
place.
d) All of The Above
600. Which among the following is incorrect about NEFT:

a) it accepting cash for originating transactions
b) it initiating transfer requests without any minimum or maximum amount limitations
c) facilitating one - way transfers to Nepal
d) receiving confirmation of the date/time of credit to the account of the beneficiaries
Page 122

e) All of The Above
601. NPCI stands for:

a) National Payment Council of India
b) Non - Payments Corporation of India
c) National Payments Corporation of India
602. NPCI became functional in early:

a) 2007
b) 2008
c) 2009
603. ATMs are one of the most convenient source to make payment to someone.
Presently there are over ________ATMs in India:
a) 59,000
b) 45,000
c) 61,000
604. Savings Bank Customers can withdraw cash from any bank terminal up to
_____times in a month without being charged for the same:
a) 3
b) 5
c) 6
605. There are over _____POS terminals in the country, which enable customers to make
payments for purchases of goods and services by mean of credit/debit cards.
a) 5 Lakh
b) 6 Lakh
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c) 7 Lakh
606. SEBI is related to:
a) Bank
b) Government of India
c) Share Market
d) State Government
607. RRB established in:

a) 5 October, 1936
b) 7 October, 1936
c) 4 October, 1965
d) 2 October, 1975
608. Which of the following is not a part of India's Money Market?
a) Bill Markets
b) Call Money Market
c) Indian Gold Council
d) Mutual Funds
609. Which among the following is not a Government sponsored organization?
a) SIDBI
b) NABARD
c) NHB
d) ICICI Bank
610. In India which agency is entrusted with collection of data of capital information:
a) RBI
b) SBI
Page 124

c) NABARD
d) CSO
611. Which of the following statements are true about LAF:
a) LAF stands for Liquidity Adjustment Facility
b) A tool which allow banks to borrow money through repurchase agreements
c) It was introduced by RBI during 2000, to ensure smooth transaction & keeping pace with
technological up-gradation
d) Both (a) and (b)
e) All of The Above
612. The concept of price elasticity of demand measures:

a) the slope of the demand curve
b) the number of buyers in a market
c) the extent to which the demand curve shifts as a result of a price decline
d) the sensitivity of consumers to price changes
e) None of The above
613. In which process the money can be immediately transferred from one bank account
to another by the use of paper money?
a) NEFT
b) EFT
c) RTGS
d) Open Market Operations
614. Which of the following is called the soft loan window of World Bank?
a) IMF
b) International Finance Corporation
c) IDA
d) All of The Above
Page 125
615. Micro Credit in India comes under:

a) Private Banking
b) NBFC
c) Rural Banking
d) Cooperative Banking
616. Counter Vailing Duties is:
a) Duties imposed on all exports
b) Duties imposed on all imports
c) Duties imposed on imports to prevent unfair trading
d) All of The Above
617. Fiscal Deficit means:

a) level of support extended by RBI to Government borrowing program
b) Gap between Government total spending and sum of its revenue receipts and non debt
capital receipts
c) Primary Deficit minus Interest payments
d) All of The Above
618.Which of the following nation is considered originator of Micro Finance:

a) India
b) Bangladesh
c) South Africa
d) U.S.A
619. Which one of the following is not measure to control inflation:
a) Increase production in agriculture
b) Curb on hoarding and Black Marketing
c) Allow more FDI
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d) All of The Above
620. Which one of the following is not a part of schedule banking in India:
a) Money Lender
b) Regional Rural Bank
c) Private Sector Bank
d) Government Sector Bank
621. Which of the following institute is not related with Finance or Economic:
a) WTO
b) WHO
c) IDA
d) IBRD
622. Which of following bank has been merged with ICICI in August, 2010:
a) Bank of Maharashtra
b) Karnataka Bank Limited
c) Bank of Madurai Limited
d) Bank of Rajasthan
623. Invisible export means export of:
a) Unrecorded Goods
b) Prohibited Goods
c) Goods through Smuggling
d) Services
624. Which of the following are the benefits of Currency Chest?

a) To avoid frequent movement of cash
b) To make payment requirement of the government
Page 127

c) To meet currency requirement of public
d) Only (a)
e) Both (b) and (c)
625. In stock market there is a term used 'Chicken Market'. What does a 'Chicken' mean
in Chicken Market?
a) An investor who earns profit from rising market
b) An investor who earns less from rising market
c) An investor who is not much risk lover
d) An investor, who has deep knowledge of market
626. India signed its first TIEA with Bermuda. What does "I" stands in TIEA?
a) Interview
b) Information
c) Indication
d) Intellectual
627. As per RBI guidelines, investment in which among the following is the Most Risk
Free Asset of a bank?
a) Home Loans
b) Loan against Jewellery
c) Venture Capital Investment
d) Government approved Securities
628. Monetary Policy is the process by which government, central bank of a country
controls:
a) The supply of Money
b) Cost of Money or Rate of Interest
c) Availability of Money
d) All of The Above
Page 128
629. What is meant by Balance of Trade?

a) Total Trade
b) Difference between Imports and Exports
c) The profit earned by a trader
d) Cost price plus profit
630. Increase in Repo Rate indicates:
a) Dear Money Policy
b) Closed Money Policy
c) Cheap Money Policy
d) Open Money Policy
631. A financial contract whose value depends on the values of one or more underlying
assets or indices of assets value. This contract is known as:
a) Share
b) Debentures
c) IPO
d) Derivatives
632. Which of the following is/are not the financial committee?

a) Public Accounts Committee
b) Estimates Committee
c) Committee on Public Undertaking
d) Committee on Private members, bills & resolutions
1) Only A
2) Both B and C
3) Both C and D
4) Only D
5) None of The Above
Page 129
633. Which of the following is not a part of Direct Tax?

a) Corporate Tax
b) Fringe Benefit Tax
c) Entertainment Tax
d) Wealth Tax
634. Gilt edge securities market, is the part of which of the following markets?
a) Capital Market
b) Money Market
c) Unorganized Market
d) Commodities Market
635. The report of HDI (Human Development Index) every year is presented by UNDP
(United Nation Development Program). The HDI is based on which pillars?
a) Poverty Level and Standard of Living
b) Standard of Living, Literacy Rate and Life Expectancy
c) Standard of Living and Literacy Rate
d) All of The Above
636. What is the meaning of call money market?

a) Money borrowed or lent for a day or over night
b) Money borrowed for more than 90 days
c) Money borrowed for more than one day but till 14 days
d) Money borrowed for more than one year
637. Many a times we read in newspaper that several companies are adopting FCCB's
route to raise capital. FCCB stands for?
a) Foreign Currency Convertible Bonds
b) Foreign Convertible Credit Bonds
c) Full Credit and Consortium Bureau
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d) Financial Cover and Consortium Bureau
638. Which amongst the following is illegal?
a) Insider Trading
b) Club Trading
c) Hedging
d) Amalgamation
e) Insider Trading and Club Trading
639. Which of the following does not come under money market?
a) Repos
b) Call Money Option
c) Treasury Bills
d) Derivative Trading
640. Full Form of TRIPS:
a) Trade Related Investment Property Rights
b) Trade Related Intellectual Property Rights
c) Transfer Related Intentional Population Rights
d) Tariffs Related International Property Rights
641. First Regional Rural Bank was established in India is:
a) Prathama Bank
b) Anyone Bank
c) Grameen Bank
d) Number One Bank
e) Ek Shubh Bank
642. Which of the following are considered as Bretton Woods twins:

a) World Bank - ADB
b) World Economic Forum - IMF
Page 131

c) IMF - IRDA
d) IMF - World Bank
643. Which among the following is not a form of currency:
a) Soft Currency
b) Hot Currency
c) Fiat Currency
d) Reserve Currency
644. RTGS stands for:
a) Real Transfer Growth Settlement
b) Real Time Gross Settlement
c) Real Task Growth Supply
d) Real Transfer Gross Supply
645. Full fomr of ASHA:

a) Acquired Synetrome Health Act
b) Arial Social Health Activists
c) Accredited Social Health Activists
d) Association of Social and Health Activists
646. Accounts are allowed to be operated by cheques in respect of ______:
a) both saving bank accounts and fixed deposit accounts
b) saving bank accounts and current accounts
c) both savings bank accounts and loan accounts
d) both savings bank accounts and cash accounts only
e) both current accounts and fixed deposit accounts
647. Fixed Deposits and recurring deposits are :

a) repayable after an agreed period
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b) repayable on demand
c) not repayable
d) repayable after death of depositors
e) repayable on demand or after an agreed period as per bank's choice
648. The usual deposit accounts of bank are:

a) Current accounts, Electricity Accounts and Insurance Premium accounts
b) Current Accounts, Post Office Savings Bank Accounts and Term Deposit Accounts
c) Loan Accounts, Current Accounts, Savings Bank Accounts and Term Deposit
Accounts
d) Current Accounts, Savings Bank Accounts and Term Deposit Accounts
e) Current Bill Accounts and Term Deposit Accounts
649. Interest payable on Savings Bank Accounts is:
a) not regulated by RBI
b) regulated by State Governments
c) regulated by Central Government
d) regulated by RBI
e) regulated by Finance Minister
650. Which among the following is correct statement?
a) State Bank of India is the sole authority to issue and manage currency in India
b) A nationalized banks is the sole authority to issue and manage currency in India
c) A cooperative bank is the sole authority to issue and manage currency in India
d) RBI is the sole authority to issue and manage currency in India
651. Which of the following is correct statement?

a) Normally no interest is paid on current deposit accounts
b) Interest is paid on current accounts at the same rate as term deposit accounts
c) The rate of interest on current account and savings account are the same.
d) No Interest is paid on any deposit by the bank
e) Savings Deposits are the same as current deposits
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652. Mortgage is a:
a) security on movable property for a loan given by a bank
b) security on immovable property for a loan given by a bank
c) concession on immovable property for a loan given by a bank
d) facility on immovable property for a loan given by a bank
e) security on immovable property for a deposit received by a bank
653. Which among the following is known as cross selling by banks?
A) Sale of a debit card to a credit card holder
B) Sale of Insurance policy to a depositor
C) Issuance of Cash against Cheque presented by a third party
a) Only A
b) Only B
c) Only C
d) Both A and C
e) All are Correct
654. Financial Inclusion means provision of:

a) financial service namely payments, remittances, savings, loans and insurance at
affordable cost to person not yet given the same
b) ration at affordable cost to persons not yet given the same
c) house at affordable cost to persons not yet given the same
d) food at affordable cost to persons not yet given the same
e) education at affordable cost to persons not yet given the same
655. Which of the following types of accounts are known as 'Demat Accounts'?
a) Accounts which are Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other
business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
Page 134
656. NEFT means:

a) National Electronic Funds Transfer System
b) Negotiated Efficient Fund Transfer System
c) National Efficient Fund Transfer Solution
d) Non Effective Fund Transfer System
e) Negotiated Electronic Foreign Transfer System
657. Distribution of insurance products and insurance policies by banks as corporate
agents is known as:
a) General Insurance
b) Non - Life Insurance
c) Bancassurance
d) Insurance Banking
e) Deposit Insurance
658. Interest on savings bank account is now calculated by banks on:
a) minimum balance during the month
b) minimum balance from 7th to last day of the month
c) minimum balance from 10th to last day of the month
d) maximum balance during the month
e) daily product basis
659. Largest Shareholder (in percentage shareholding) of a nationalized bank is:

a) Reserve Bank of India
b) NABARD
c) LIC
d) Government of India
e) IBA
660. When the rate of inflation increases:
a) purchasing power of money increases
b) purchasing power of money decreases
c) value of money increase
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d) purchasing power of money remains unaffected
e) amount of money in circulation decre
661. "INDIA's Central Bank" is slogan of:
a) Reserve Bank of India
b) State Bank of India
c) IDBI
d) None of These
662. CPI refers to:

a) Cost Price Index
b) Consumer Price Index
c) Current Price Index
d) None of These
663. "Imperial Bank of India" is the former name of which of the following bank:
a) SBI
b) Indus Ind Bank
c) RBI
d) None of These
664. "RAND" is currency of :
a) South Korea
b) South Africa
c) South America
d) None of These
665. PLR stands for:

a) Poverty Line Remark
b) Price Lending Rate
c) Prime Lending Rate
d) None of These
Page 136

666. The cabinet has approved the extension of Ex-servicemen contributory health
scheme to_______domiciled gorkhas pensioners ex-service men:
a) Bhutan
b) Nepal
c) Tibet
d) None of These
667. Which of the following term is not related to Banking/Finance operations:
a) Consolidation
b) Provision Coverage Ratio
c) Commodification
d) None of These
668. Which of the following committee was related to Foreign Direct Investment:
a) Dutt Committee
b) N.K. Singh Committee
c) Chandra Shekhar Committee
d) None of These
669. The excess of total expenditures over total receipts is known as:
a) Fiscal Deficit
b) Revenue Deficit
c) Budget Deficit
d) None of These
670. Which of the following is a Private Sector Undertaking:
a) Cotton Corporation of India
b) Air India Engineering Services Limited
c) Tata Consultancy Services
d) None of These
671. CBS stands for:

a) Code Banking Solutions
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b) Core Banking Solutions
c) Central Banking Solutions
672. If you buy a financial instrument in one market in order to sell the same instrument
in another market at higher price, it will be called as:
a) Brokerage
b) Arbitrage
c) Forfeiture of Instrument
673. AER stands for:
a) Average Earnings Rate
b) Annual Earnings Rate
c) Appropriate Earning Rate
674. Which Indian State state has the highest per capita income:
a) Haryana
b) Punjab
c) Uttar Pradesh
d) Karnataka
675. The Reserve Bank of India was Nationalized on:
a) 1947
b) 1949
c) 1956
676. Canara Bank was founded by:
a) Lala Lajpat Rai
b) Ammembai Subba Rao Pai
c) Hardyal Khurana
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677. Canara Bank was founded on:

a) December, 1906
b) August, 1906
c) July, 1906
678. Shri Ammembai Subba Rao Pai founded Canara Bank at ______:
a) Patiala
b) Mangalore
c) Kolkata
d) Delhi
679. Canara Bank was nationalized on:

a) November, 1980
b) August, 1970
c) July, 1969
680. Canara Bank with an unbroken record of profits since its inception it has several
first to its credit which includes:
a) Launching of Inter - City ATM Network
b) Obtaining ISO Certification for a Branch
c) Commissioning of Exclusive Mahila Baking Branch
d) Launching of Exclusive subsidiary for IT consultancy
e) All of The Above
681. Which among the following is correct about the initiative taken by Canara Bank:
a) Issuing Credit Card for Farmers
b) Providing Agriculture Consultancy Services
c) Both of The Above
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682. As at June 2015, Canara Bank has further expanded its domestic presence with
____branches spread across all geographical segments:
a) 5708
b) 6708
c) 9708
683. The Canara Bank has ____ATMs covering ____centers:

a) 9039 and 4081
b) 1039 and 5081
c) 5409 and 6081
684. Chairman of Canara Bank is:

a) S.V Khullar
b) T.N. Manoharan
c) Animesh Tyagi
685. MD and CEO of Canara Bank is:
a) Rakesh Sharma
b) Pradyuman Rawat
c) Singh Harpreet
686 "Golden Peacock Business Excellence Award 2015" by the Institute of Directors
India given to:
a) PNB
b) Punjab and Sind Bank
c) Canara Bank
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687. Headquarter of Canara Bank is situated at:

a) New Delhi
b) Bangalore, Karnataka
c) Mangalore, Karnataka
688. Slogan of Canara Bank is:
a) Together We Prosper
b) A Long Tradition of Trust
c) It's easy to change for those who love you, Together We Can
689. MSME Banking Excellence Awards 2014 organized by Chamber of Indian Micro,
Small and Medium Enterprises (CIMSME) at New Delhi award given to:
a) Canara Bank
b) Punjab National Bank
c) State Bank of India
690. Canara Bank opened its _____overseas branch in New York on 10 June, 2014:
a) 9th
b) 7th
c) 2nd
691. United Bank of India is one of the _____major banks which were nationalized on July
19, 1969:
a) 14
b) 13
c) 15
692. United Bank of India Limited was formed in _____:
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a) 1950
b) 1947
c) 1951
693. United Bank of India Limited was formed in 1950 with the amalgamation of:
a) Comilla Banking Corporation Limited (1914)
b) Begal Central Bank Limited (1918)
c) Comilla Union Bank Limited (1922)
d) Hooghly Bank Limited (1932)
e) All of The Above
694. Presently United Bank of India is having a ______tier organizational set up:
a) 5
b) 3
c) 4
695. Which among the following is correct about Three Tier organizational set up:
a) Corporate Office, 36 Regional Office and the Branches
b) Head Office, Corporate Office and the Branches
c) Head Office, 35 Regional Offices and the Branches
d) All of The Above
696. After nationalization of the Bank, The Bank expanded its branch network in a big
way and actively participated in the developmental activities, particularly in the:
a) Both Rural as well as Urban Areas
b) Only Rural Areas
c) Rural and Semi - Urban Areas
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697. 'United Bank of India' is designated as Lead Bank in several districts and at present
it is the Lead Bank in 30 districts in the states of:
a) West Bengal, Meghalaya, Nagaland and Arunachal Pradesh
b) West Bengal, Assam, Manipur and Tripura
c) West Bengal, Jharkhand, Bihar and Uttar Pradesh
698. United Bank of India played a significant role in the spread of banking services in
different parts of the country, more particularly in:
a) Eastern and North Eastern India
b) Eastern and Western India
c) Easter and Southern India
699. UBI is also known as the _______:

a) Tea Bank
b) Coffee Bank
c) Candy Bank
700. United Bank of India is also known as the 'Tea Bank' because:
a) of its age - old association with the financing of tea gardens
b) It has been the largest lender to the tea industry
c) It provide land areas for tea plantation
d) All of The Above
e) Only (a) and (b)
701. The Slogan of 'United Bank of India' is:

a) Your perfect financial banking partner
b) The name you can bank upon
c) The Bank that Begins with "U"
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702. MD and CEO of 'United Bank of India' is:
a) Jatinder Bir Singh
b) P. Srinivas
c) Sindhu Shree Khullar
703. Headquarter of United Bank of India is located at:

a) New Delhi
b) Kolkata, West Bengal
c) Manipal, Karnataka
d) Thrissur, Kerala
704. "United Bank of India" get National Award under Prime Minister Employment
Guarantee Program in north east zone from the Ministry of MSME, Government of India in
the year ____:
a) 2007
b) 2008
c) 2009
705. Which among the following is incorrect:
a) The Bank has three full fledged Overseas Branches
b) Fully equipped dealing room and SWIFT terminal consist branches in Kolkata, New Delhi and
Mumbai
c) The Bank has ATMs all over the country and customers can use United International Debit
Card at all VISA ATMs across the globe.
d) All of The Above
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Banking Awareness Question Bank v-3

1. ___________ promoted Securities Trading Corporation of India Limited (STCI) jointly