Banking Batterfea

IBPS Clerical Cadre
Banking Battery
Exclusively prepared for RACE Circle Students
#1, South Usman Road, T Nagar, Chennai-17
Ph: 044 6456 3030, Mob: 9043303030,
www.RACEinstitute.in
R. A. C. E
Rapid Academy of Competitive Exams
[Unit of Seeman Education]
1. Visa is a leading electronic payment

technology firm (The logo of the firm can be seen
printed on credit cards/ATM centres etc.)
2. NABARD is the organizations/agencies works
solely to monitor and arrange flow of agriculture
credit in India
3. Insurance companies in India are regulated by
IRDA
(Insurance
Regulatory
and
Development Authority)
4. Washington DC is the headquarter of the
International Monetary Fund (IMF)
5. Whenever somebody needs foreign currency
against Indian Rupee, banks give equivalent
amount of desired currency based on prevalent
exchange rate
6. Sub-prime lending refers to lending to the
people with less than standard credit status
7. NBFCs are an important part of the Indian
financial system. The term NBFC is Non Banking
Financial Companies
8. The term CTS is Cheque Truncation System
9. The term MSF is Marginal Standing Facility
10. One rupee note and all coins will be issued by
Central Government
11. NABARD is also known as the National Bank
12. Banks recover term loan from the parties in
EMIs. The letter E represents in the term is
Equated
13. NABARD is NOT a scheduled Commercial
Bank
14. SARFAESI Act Acts is specially launched to

facilitate banks in recovery of bad loans
15.
Which
of
the
following
organizations/
agencies is not associated with the world of

banking and finance
SEBI (Securities and Exchange Board of India)
AMFI (Association of Mutual Funds in India)
RBI (Reserve Bank of India)
ECGC (Export Credit Guarantee Corporation of
India)
ONGC (Oil and Natural Gas Corporation)
16. The financial results of banks and other
organizations normally are expressed in quarters.
Q -1 means Performance during April June
17. Chennai is the Headquarter of Indian Bank
18. Whose signature does a one rupee note bearFinance Secretary
19. Many Regional Rural Banks were given
licenses to open branches in small cities and
towns. These licenses were given by NABARD
20. Banks are required to preserve the old
records. The rules regarding preservation are
framed by Central Govt., as per provisions of
Banking Regulation Act
21. Under Section 5(a) of the Banking Regulation
Act 1949, approved securities denote Securities
Exclusively prepared for R.A.C.E Students

#1, South Usman Road, T Nagar, Chennai-17, Ph: 044 6456 3030, Mob: 9043303030, www.RaceInstitute.in
R. A. C. E
defined under section 20 of the Indian
28. Legal amount in a cheque stands for amount
Trusts Act 1882
in words
22. On the basis of Banking Regulation Act
29. On a cheque issued by a customer, the words
and RBI Act, RBI regulates and controls the
bearer or order are not written. This cheque will
banks in India
be treated as An order cheque
23. Banks can undertake the business of banking
30.
and banking as a term has been defined under
Systematic
Banking Regulation Act Section 5(b)
transaction with the rest of the world
24. Banks have prohibited to staple bank notes
31. How many RRBs are working in the economy
by
- 84
RBI
by
issuing
strict
directives
for
BoP
(Balance
of
record
of
Payment)
all
its
refers
to
economic
implementation under Section 35 A of Banking
32. RBI directives - is a selective credit control
Regulation Act
method
25. All banking company are to prepare balance
33. Which pair is not correct?
sheet and profit & loss account as on Mar 31
EXIM Bank Financing for export import RBI
every
banker`s bank
year
is
prescribed
in
Banking
Regulations Act
IDBI Industrial finance
26. The annual return of unclaimed deposits u/s
FCI Financial assistance to commercial
26
institutions
of
Banking
Regulation
Act
should
be
submitted to RBI within 30 days after close of
34) Due to To meet foreign exchange crisis,
the calendar year
India had to export gold to bank England in
27. A cheque is defined u/s 6 of NI Act
1991.
35. Public account deposit - is not accepted by
38. The first public sector bank in India which
commercial banks
obtained license for Internet Banking from RBI is
(Accepted
deposits
Fixed
deposit,
Demand
Punjab National Bank
deposit, Saving deposit)
39.
Open
market
operations
mean
36. Moral situation is Persuasion of banks to
purchase in the open market of Government
adhere to central bank desires
securities
37. The following instruments of quantitative
40. Loan taken by the person, not telling the
credit control are used by the RBI/
purpose of taking loan is called Personal Loan
1. cash requirement ratio
41. Public Sector Banks include 20 Nationalized
2. Statutory liquidity ratio
Banks + State Bank of India + 5 SBI
3. Open MARKET operations
Associates + IDBI

sale
or
R. A. C. E
42. The formal way of lending includes lending
(c) CRISIL (Credit Rating Information Services of
from
India Limited)
Private
Sector
Banks,
Co-operative
Banks, Public Sector Banks, RRB
(d) Moody
43. Finance commission distributes the taxes
(e) S & P (Standard & Poor's)
between centre and states.
55. What is MZM in money market- Money with
44. The facility available in the BSBDA is deposit
zero maturity
amount, withdrawing of cash, ATM Card,
56. The Tier-1 capital of banks does not include
withdrawal form facility
_______.
45. Mutual funds is a third party product often
(a) Paid-up capital
sold by banks.
(b) Revaluation reserves
46. The co-operative bank is governed by the
(c) Statutory reserves
banking regulation Act 1949 and co-operative
(d) Investment fluctuation reserves
societies Act of 1965
(e) None of these
47. A scheduled bank must be
57.
(1) A corporative or company incorporated
Management (NIBM) located- Pune
by any law in force in any place in India
58.
(2) An institution notified by GOI
observed on October 15
(3) A company as defined by companies act,
59. Which of the following is a fully-owned
2013
subsidiary of RBI?
48. Kapoor committee, 1999 is related to Co-
(a) NHB (National Housing Bank)
operative Banking Reforms
(b)
49. SIDBI is meant for small and medium
Guarantee Corporation)
enterprises.
(c) BRBNMPL (Bharatiya Reserve Bank Note
50. Banking sector comes under which sector-
Mudran Private Limited)
Services sector
(d) All of the above
51. STT - Securities Transaction tax
60. Which bank recently opened a representative
52. Washington D.C. is the headquarters of
office
World Bank
emerging from improving bilateral relationship
53. Swabhiman scheme is related to Financial
and trade between India and Bangladesh- Axis
Inclusion
Bank
54. Which of the following is not a credit rating
61. State Bank of India recently to defunct airline
agency
Kingfisher has declared Vijay Mallya as wilful
(a) WADA (World Anti-Doping Agency)
defaulter after its grievance redressal committee
Where
is
International
DICGC
in
National
Day
(Deposit
Dhaka
to
of
Institute
Rural
the
Bank
Women
Insurance
grab
of
and
is
Credit
opportunities
(b) Fitch

R. A. C. E
rejected the arguments made by the borrower
a) Proof of an Indian companys share
through its legal representative recently.
b) Is an unsecured money MARKET instrument
62. Samiran Chakraborty has been appointed as
c) Proof of ownership of foreign companys
Chief Economist of Citi Bank
share
63. Which of the following methods is currently
d)
used in India to issue note- Minimum Reserve
Companies
System
70. The first bank of India Bank of Hindustan
Proof
of
earnings
or
profits
of
Indian
was established in the year 1770

71. Calcutta, Madras, Bombay are the correct
locations of three presidency banks during British
India
72. Allahabad Bank is the oldest Joint Stock
bank of India
73. Bank of India was the first bank to open a
branch on foreign soil
74. What was the initial share capital of Reserve
Bank of India- Rs. 5 Crore
64. Which of the following is not correctly
75. The Royal Commission on Indian Currency
matched?
and Finance was also known as Hilton-Young
a) ICICI-1956
b) IDBI- 1964
Commission
c) IFCI- 1948
d) SIDBI- 1988
76. Original headquarters of RBI were located at
65. First Indian bank to open overseas branch-
Calcutta
Bank of India
77. In which year, Paper Currency Act was
66. Nationalization of banks took place in India in
enacted by British Government of India- 1861
how many phases-2
78. RBI started working on 1 April 1935
67. Punjab National Bank is the first fully
79. In which year, Indian Rupee was devalued for
Indian bank, established by the Indian capital
the first time-1966
68. Which among the following statement is
80. Housing loan (per family) for purchase or
incorrect about SEBI?
construction of house, up to
a) Capital MARKET regulator
sanctioned in centres with population above 10
b) Mutual fund regulator
lac, can be classified as Housing Loans under
c) Regulates the credit rating agencies in India
priority sector.
d) None
81. Under which of the following will a retail
69. Indian Depository Receipt (IDR) is the
trader in fertilizer will be classified for the
Rs. 25 lac

R. A. C. E
purposes of priority sector advance- Agriculture
83. Your branch has received a proposal for
indirect
sanction of loan of Rs. 18000 under the priority
82. What is the loan limit ceiling for artisans,
sector. What is the time period available to the
village and cottage industries for categorisation
branch to take decision on this proposal- at bank
under weaker section- Rs. 50000
discretion
84. Which of the following can be recovered by
(a) 10000 RBI
the banks in case of priority sector advances up
(b) 50000 NABARD
to Rs. 25000?
(c) 50000 National Housing Bank
(a) Penal interest

(c)
Processing
(b) Inspection charges

charges(d)
Instalment
of
(d) 20000 KVIC margin money

(e) None of these
principl
88. What is the maximum amount of House Loan
(e) All of the above
on which subsidy is available- Rs. 15 lac
85. Loans outstanding under general Credit Cards
89. Credit linked capital subsidy of 15% of cost of
are to be classified as MSE loans
plant and machinery, for MSE for technology up
86.
Loans
sanctioned
by
banks
directly
to
gradation is available, if the following condition is
individuals for setting up off-grid solar and other
satisfied
off-grid
(a) Loan amount is Rs. 100 lac
renewable
energy
solutions
for
households, can be classified as Other priority
(b) Machinery cost Rs. 100 lac
sector loans
(c) Project cost is Rs. 100 lac
87. Which of the following does not match for
(d) None of these
population for the purpose of rural areas?

R. A. C. E
90. On a cheque issued by a customer, the words
98. In case collection of a bank draft the
bearer or order are written. This cheque will be
collecting banker is protected against conversion
treated as: A bearer cheque
under 131 A section of Negotiable Instruments
91. Courtesy amount in a cheque stands for
Act 1881
amount in figures
99. A cheque has been deposited by a customer
92. On which of the following types of cheques
with his bank for collection. The bank allows
alterations are not allowed by RBI
overdraft against the security thereof. The bank
(a) paper cheque
becomes Drawer of the cheque
(b) CTS cheque
100. Recently RBI has signed MoU( Memorandum
(c) Electronic cheque
of Understanding) on Supervisory Cooperation
(d) Cheque with account payee crossing
and Exchange of Supervisory Information with
93. Which of the following cannot be endorsed?
Nepal
(a) A fixed deposit
101. The Reserve Bank of India (RBI) declared
(b) A bank draft
SBI and ICICI banks as Domestic Systemically
(c) A promissory note
Important Banks (D-SIBs) in line with the D-SIB
(d) A usance bill of exchange
Frame work
(e) A cheque
102.
94. Account payee crossing is an direction of the
committee on Medium-Term Path on Financial
drawer to collecting banker
Inclusion
95.
Which
among
the
following
group
of
103.
RBI
RBI
constituted
signed
Deepak
Special
Mohanty
Currency
Swap
instruments can be crossed by the drawer of
Agreement with Sri Lanka
holders?
104. Project Tatkal Launched by SBI Bank
(a) a bill of exchange and delivery order
105. Finance Minister Arun Jaitley Launched two
(b) a delivery order and cheque
funds under Small Industries Development Bank
(c) a promissory note and demand draft
of India(SIDBI) in lline to carter funding for start-
(d) bank draft or cheque
ups and to aid small enterprises in India, what
96. Crossing is a direction
are they- IAF(India Aspiration Fund) and
(a) of drawer to the payee
SMILE
(b) of endorser to endorsee
Enterprises)
(c) of drawer to drawee bank
106. Two new Savings Bank products for children
(d) None of the above
namely
97. In case of collection of cheques and bills, the
introduced by which bank- SBI
relationship of the banker with the customer is
107. U.T.I. officially changed into Axis Bank
(SIDBI
Make
PehlaKadam
in
India
and
Loan
for
PehliUdaan
that of Bank as agent and customer trustee

R. A. C. E
108. What is Indias GDP growth forecast for the
118. The Central Government has extended the
FY 2015-16 according to Fitch Ratings-7.4
cover of Rashtriya Swasthya Bima Yozana (RSBY)
109. K K Mani committee has submitted its
to Beedi Workers and Domestic Workers
views in GST to RS Select Committee
119. One of the major challenges faced by the
110. Which of the following bank has recently
Banking Industry is Money Laundering. Name the
launched Fx Out- SBI
Act/Norms launched by the banks to curb Money
111. HDFC Bank has launched 10 seconds Paper
Laundering, in general- Know your customer
less instant loan Scheme to provide Personal
norms
Loans
120.
112. SEBI has relaxed IPO (Initial Public
communications for banks and FIs launched by
Offer) norms for the Technological start ups?
RBI BANKNET
The
network
for
common
data
121. Debit card is the instrument of payment

called Plastic Money
122. Salary payment rolls is
considered as
part of the batch processing system

123. The term EFT means Electronic Funds
Transfers
124.
INFINET
stands
for
International
Financial network
125. Rs. 115 cr is the minimum value of stock of
113. Reserve Bank of India decided to allow A D
Banks, Cat I banks to borrow foreign currency
from International and Multinational Financial
Institutions
RBI is published Half Yearly
126. Who conducts integrated supervision over

para-banking
financial
institutions,
in
India-
FCMD (Financial Conglomerate Monitoring
115. What is the accounting year period for

Reserve Bank of India- July to June
Division) of RBI
127. Banks disclose the information about their
116. The Narasimham Committee-I was setup to

suggest some recommendations for improvement
in Efficiency and productivity of the financial
institution
borrowers to RBI under Provisions of Section

45-C, RBI Act
128. Rs. 10000 is the highest denomination
bank note that RBI can issue as per provisions of
117. The Narasimham Committee-II was formed

suggest
RBI has to maintain at any point of time.

commercial banks, FIs and NBFCs and other
114. The Financial Stability Report released by
to
gold coins, bullion and foreign securities, which
some
recommendation
for
RBI Act
the
improvement of Banking reform process

R. A. C. E
129. What is meant by Scheduled Bank- A bank
was being paid at 25 per cent of the notional
included in 2nd schedule of RBI Act
value of counterfeit notes detected.
130. European Central Bank is responsible for
140. The RBI has decided to issue 5 Rupee coins
finalizing the interest rates and credit policy of
to commemorate golden jubilee year of 1965
the Euro zone
Indo-Pak War.
131. The full form of the organization known as
141. The IMF has announced which of the
FEDAI
following country among the few bright spots in
is
Foreign
Exchange
Dealers
Association of India
the Global Economy
132. Only public and private sector banks are
(a)Sri Lanka
(b)India
permitted to undertake business of the central
(c)Bhutan
(d)Bangladesh
and state governments in India
142. Bandhan Bank which has recently started its
133. Where does RBI mint CURRENCYcoins-
operation as full-fledged scheduled commercial
Mumbai, Alipore(Kolkata), Hyderabad and
bank is head quartered at Kolkata
Noida
143. The main purpose of Banks Board Bureau
134. India signs Loan Agreement with (ADB)
(BBB) will be Recommend appointment of
Asian
directors in public sector banks
Development
Bank
for
upgrading
Tourism Infrastructure and Services

135.
Forward
has
from trading in Bombay Stock Exchange due to
merged with capital markets watchdog Securities
alleged manipulation of the stock exchange route
and Exchange Board of India (SEBI)
for evading taxes- 59
136. Finance Minister Arun Jaitley has set a
145. How many applicants were granted in-
target of Rs 1.22 lakh cr for loans to be given by
principle approval by Reserve Bank of India
state-run banks under the PMMY. The term PMMY
start payments banks-11 applicants
stands for Pradhan Mantri Mudra Yojana.
146. The
137. Recently, RBI has planned to review its
launched by Axis Bank It will work for both
norms
account and non-account holders to shop, pay
for
Markets
144. How many entities were barred by SEBI
Commission
ECB(External
Commercial
Borrowings)
138.
IDFC
mobile banking
app
to
LIME was
and transfer money

(Infrastructure
Development
147. According to World Bank sources, the top
Finance Company ) has been granted the
five
countries
with
the
biggest
investment
regulatory approval by the RBI to utilise Rs 2,500
commitments in 2014 are Brazil, Turkey, Peru,
crore non-distributable statutory reserves.
Colombia and India
139. The Reserve Bank has withdrawn
the
148. With Axis Bank ,Kochi Metro ties up to
instructions
for
make significant revenues from ticket sales.
on
compensation
to
banks
detecting counterfeit notes. The compensation

R. A. C. E
149. SBI (State Bank of India) cuts its base
rate by 0.4% after the RBI cut the the repo rate
by 50 basis points
150. Euro money is the official currency of
European
151. Debit card, Credit card, ATM withdrawal
are examples of cash less purchase
152. Whose signature appears on Indian Rs. 100
note- RBI Governor
153. While discussing investments there is a
mention of short term government security called
Treasury bill
154. Banking loan against property requires the
asset to be free from encumbrances. The asset
to be free from any liability
155. RBI stipulates a healthy mix of CASA in the
business figures of banks. CASA is Current
Account and saving Account
156. Which one of the following is not an
electronic banking delivery channel?
a) Mobile Vans
b) Mobile Phone Banking
c) Internet Banking d) Tele Banking
e)ATM
157. The Rate at which the domestic currency

can be converted into foreign currency and viceversa is known as the Exchange rate
158. Now-a-days Banks are selling third party
products. Example of third party product is
Mutual funds
159. Electronic Clearing Service in banks can be
availed only by?
a) Individuals
b) Corporates
c) Senior Citizens
d) All of these
e) None
160. Bonds without maturity dates are called

Consols
161. Nominal interest rate = real interest
rate + inflation represents the fishers equation
162. The return on holding a bond till its maturity
is called Yield to maturity
163. Wider the range of outcome wider will be
the
Risk
164. The interest rate that is involved in Present
value calculation is referred to as discount rate
165. Bonds that are issued by Government are
called Treasury bond
166. If a bond sells at a premium, where price
exceeds face value, then we would expect to see
Market interest rates below the coupon rate
167. With direct finance we mean Individuals
(or firms) borrow directly from the savers
168. Investors will hold higher compensation for
the More risky investment.
169. PV(1 + i) best expresses the proceeds a
lender receives from a simple loan.
170. A financial instrument in which a borrower
obtains resources from a lender immediately in
exchange for a promised set of payments in the
future is called as Bank Loan

10
R. A. C. E
171. According to the rule of 72 for reasonable
major banks of our country is known as Core
rates of return, the time it takes to Doubles the
Banking
money will be t =72/i%

172. The return on the bond is equal to Coupon
rate + rate of capital gains
173. A loan that is used to purchase the real
estate is known as Mortgages loan
174. When a bond becomes more liquid relative
to its alternatives, the demand curve for bonds
shifts to the Right
175. Consumer Price Index (CPI) measures the
Changes in the prices
183. Which of the following is NOT considered a
176. A risk-averse investor will Always prefer
money market instrument?
an investment with a certain return to one
a) Treasury Bills
with the same expected return but any
c) Commercial Paper d) Certificate of Deposit
amount of uncertainty
e) Shares and Bonds
177. Move in opposite direction best represent
184.
the true relationships between interest rates and
deposit accounts in banks
bond prices
185. Which of the following is not a banking
178. Time affects the value of which of the
term?
following?
a) Letter of credit
b) MIBOR
d) Entry load
b) Repurchase Agreement
Nomination is necessary while opening
a.Financial Instruments
b.Financial Markets
c) Factoring services
c.Financial Institutions
d.Central Banks
e) None of these
179.
Money is a component of wealth that is
186. Which of the following organizations issue
held in a readily spendable form
the rules of global trade?
180. Banks in our country normally publicize that
a) IMF
additional
c) Foreign trade
interest
rate
is
allowed
on
retail
b) World Trade Organization

d) G-20
domestic term deposits of Senior citizens
e) None
181.
187. One single statement that depicts the
When
the
rate
of
inflation
increases
Purchasing power of money decreases

182.
centralized
database
with
financial position of a Bank and / or Business

online
enterprise at a given point of time is called
connectivity to branches, internet as well as ATM-
Balance Sheet
network which has been adopted by almost all
188. The Reverse Mortgage scheme is launched

to give benefit to Senior Citizens

11
R. A. C. E
189.
One
of
the
major
challenges
banking
196. When a bank returns a cheque unpaid, it is
industry is facing these days is curbing deliberate
called Dishonour of the cheque
efforts of some people to bring money earned
197. What types of accounts are known as
through
Demat Accounts?
illegal
activities
in
circulation.
Prevention of Money laundering act is passed
Accounts
to prevent this activity
companies are traded in electronic form
190. The usual deposit accounts of banks are
198. What is a Repo Rate?
Current accounts, savings bank accounts
It is a rate at which banks borrow rupees
and term deposit accounts.
from RBI
191. Fixed deposits and recurring deposits are
199. In economics it is generally believed that
Repayable after an agreed period
the main objective of a Public Sector Financial
192. Accounts are allowed to be operated by
Company like Bank is to Provide financial
cheques in respect of Savings bank accounts
service to the people of the nation of its
and current accounts.
origin across the country
193. Which of the following is correct statement?
200. Which of the following cannot be called as a
a) No interest is paid on current deposit
Debt
accounts.
transactions?
b) Interest is paid on current accounts at the
(a) Certificate of Deposits
same rate as term deposit accounts.
(c) Stocks
c) The rate of interest on current accounts and
(e) Loans
savings accounts are the same.
201. SEBI has been imposed a restriction on
d) No interest is paid on any deposit by the bank.
money flow in equity through P-notes. What is
e) Savings deposits are the same as current
the full form of P-notes- participatory notes
deposits.
202. Whenever RBI does some Open Market
194. Banking services delivered to a customer by
Operation
means of a computer control system that does
regulate liquidity in economy
not
203. The maximum amount of the total Revenue
directly
involve
banks
branch
is
called
Virtual banking
195.
Financial
Financial
in
which
Instrument
as
shares
of
referred
various
in
financial
(b) Bonds
(d) Commercial Papers
Transaction,
actually
it
wishes
to
earned by the government of India comes from

inclusion
services
means
namely
provision
of
payments,
Excise Duty
204. Central Bank of India was the first Indian
remittances, savings, loans and insurance at
Bank to introduce credit card
affordable cost to persons not yet given the
205.
bank
(Securities and Exchange Board of India)
Capital
Market
Regulator
is
SEBI
206. FDI refers to Foreign Direct Investment

12
R. A. C. E
207. Call Money is called Money borrowed or
218. Overdue recurring deposits is not an
lent for a day or over night
asset of a bank
208.
The
section
85
of
The
Negotiable
219. The banking company has restriction to
Instruments Act, 181 deal with Cheque payable
sanction loan to Directors of the bank
to order
220. Which of the following is a non-depository
209. RBI can carry out inspection of any bank
institution?
under section 35 of Banking Regulation Act.
a) Credit unions
b) Commercial banks
210.
c) Mutual funds
d) Regional rural banks
The
Banking
Ombudsman
can
award
maximum compensation up to Rs. 10 lac
221. Which of the following is not a function of a
211. A banker lien is governed by Indian
commercial bank?
Contract Act
a) Registration of charges and mortgages
212. Mortgage and lease are defined in Transfer
b) Transactions services
of Property Act
c) Asset transaction
213. A cheque is payable on demand
d) Real-time Gross Settlement
214. Bill of Exchange, Promissory Notes and
222. The interest in savings bank accounts of a
Cheques
bank is calculated on Minimum amount of
are
defined
as
Negotiable
Instruments
balance that is maintained in the account in

between 10th and the last day of month
223. The credit policy of a bank does not deal
with
Outstanding
balances
in
deposit
accounts
224. Issuing credit cards is a component of
Retail banking
225. The origin of bank instruments can be
215. An award of Banking Ombudsman is a
traced to Goldsmith receipts
judicial decision
226. Which of the following is not the function of
216. Nomination was introduced in banks by
commercial banks?
amendment in Banking Regulation Act
a) Providing transaction services
217.
Banking
Ombudsman
Scheme
is
not
b) Intermediation in financial services
applicable to
c) Providing transformation services
(a) Associate Banks of SBI
d) Regulating the issue of bank notes
(b) Foreign banks working in India
227. Which of the following is not a criterion to
(c) Private Sector Banks
select the Investment Bankers?
(d) RRB

13
R. A. C. E
a)
No
professional
memberships
or
237.
As part of the Financial Inclusion the
incorporations are required
Mobile banking acts as an alternative to the
b) General reputation in the market
Branch Banking.
c) Good rapport with market intermediaries
238. ECS: Electronic Clearing Service is times
d) Distribution net work of the organization
mentioned and Direct Debit Facility.
228. Mutual funds is a third party product often
239. The discounting rate at which RBI borrows
sold by banks
government securities from commercial banks is
229. The co-operative bank is governed by the
known as Repo Rate.
banking regulation Act 1949 and co-operative
240.
societies Act of 1965
instrument of monetary policy used by the RBI.
230. A scheduled bank must be
241. Context of IMPS- Immediate Payment
(a) A corporative or company incorporated by
Service
any law in force in any place in India
(a) Its a mobile-to-mobile fund transfer facility
(b) An institution notified by GOI
(b) Both the sender and the receiver must have
(c) A company as defined by companies act,
an account in the same bank
2013
(c) Both the customers must have an MMID
(d) All of the above
(Mobile Money Identifier Number) number
231. Kapoor committee, 1999 is related to Co-
242. CIBIL: Credit Information Bureau of
operative Banking Reforms
India Limited is the organization that maintains
232. Under the second phase of nationalization,
the borrowers history in India.
07 banks were nationalized. Their deposits were
243. RBI has directed commercial banks to
over 200 crore.
resolve ATM transaction-related complaints within
233. Gilt-edged securities market is the market
seven working days. If a commercial bank is
for government and semi-government securities.
unable to do so then it has to pay Rs. 100 per
These securities carry Fixed interest rate
day as compensation.
234.
244. RTGS - Real-time gross settlement' systems
AEPS
in
terms
of
banking
Aadhaar-
CRR
Cash
Reserve
Ratio
is
an
enabled Payment system
as well as NEFT - National Electronic Funds
235.
Transfer uses IFSC: Indian Financial System
After the recommendations Narasimhan
Committee the Regional Rural Banks were setup
Code
236. Self Help Group (SHG) Bank Linkgage
245. SEBI - Securities and Exchange Board
programme was first launched by
NABARD
of India is a capital market regulator, mutual
(National Bank for Agriculture and Rural
fund regulator and also regulates the credit
Development)
rating agencies in India

14
R. A. C. E
246. Liquidity means how cheaply and quickly
259. The first committee (year 1985) that gave
an asset is converted into cash.
its recommendations relating to mechanization of
247. SWIFT - Society for Worldwide Interbank
banking system is Rangarajan Committee
Financial Telecommunication.
260. The Rangarajan Committee that gave its
248. Reserve Bank of Indias functions are
recommendation for drawing a perspective plan
classified into:
of computerization for the period 1990-94
a) Supervisory & Regulatory
261. The Saraf Committee that recommended
b) Promotional & Developmental
the introduction of electronic clearing services
c) Refinance Activities
262. The Saraf Committee that suggested the
249. Minimum Bank Rate is:
cheque
a) 3%
b) 4%
c) 5%
truncation
system
for
interbank
transactions
d) None
263. 1998 Committee on Technology upgradation
250. Sec 22 of RBI Act,1934 gives sole power
in Banking Sector is known as Vasudevan
to RBI to issue currency notes.
Committee
251. KYC (Know Your Customer) means Satisfy
264. The software that is used for a centralised
yourselves about the customers identity and
environment in banking operations is called
activities.
centralized banking solutions
252. In a Garnishee Order, the banker on whom
265. The following kinds of environment is
garnishee
provided through Centralized Banking Solution
order
served
is:
Judgement
Debtors Debtor
253.
Sec
131
software
of
NI
Act,1881
extends
(a) any time banking
protection to the Collecting Banker.
(b) any where banking
254. Hypothecation is applicable in the case of
(c)
Movable goods.
customer
255.
Charge
created
on
LIC
Policy
is:
bank
customer
instead
of
branch
266. Rs 100000 per depositors across all
Assignment
banks is the maximum deposit amount insured
256. Under RBI NEFT system, the maximum limit
by DICGC.
of individual transaction presently -No ceiling
267. With reference to a cheque the `drawee
257. The transaction limit under mobile banking
bank` is The bank upon which the cheque is
is bank discretion per customer for transactions
drawn.
involving purchase of goods and services and
268. RTGS is fund transfer mechanisms, can
transfer of FUNDS.
funds be moved from one bank to another and
258. The Shere committee is associated with
where the transaction is settled instantly without
EFT system of RBI.
being bunched with any other transaction.

15
R. A. C. E
269. Banking ombudsman scheme is applicable
271. according to the reserve bank`s instructions
to the business of All banking to masses
on banking matters. The banks can accept
270. Debit card is a card which can be used
interest free deposits in Only current accounts
for withdrawing cash or making payment if there
272. Free market policy is not helpful in
is balance in the account
controlling money supply
273. At
Increase in output and increase in
whatever name called) of mutual FUNDS with
capital stock situation the `investment` will
weighted average maturity of portfolio of not
increase.
more than 1 year, will be subject to a prudential
274. GDR means Global
Depository Receipt
cap of 10% of their net worth as on March 31
which is the mechanism to raise funds from
of the previous year.
international market
278. Net Interest Income (NII) is Difference of
275. Assets minus liabilities equals capital is
interest
income.
fundamental
commercial
bank
accounting
identify.
276.
As
earned
on
assets
and
non-interest
279. Bombay STOCK Exchange index Sensex is

per
SEBI
directives,
25%
is
the
based on the value of top 30 blue chip shares.
minimum public shareholding in case of listed
280.
The
held
for
TRADING
securities
companies
required to be sold within 90 days.
277. RBI has decided that the total investment
281. The SLR and non-SL
are
by banks in liquid/short term debt schemes (by

16
R. A. C. E
R securities of the banks are classified into 3
funds,
short-lived
categories. (monthly, quarterly, half-yearly)
securities
282. RBI changes the CRR to increases the
292. Home loans is a retail banking product.
liquidity position within Indian banks
293. Fiscal policy function is not a function of
283. When Repo rate is reduced by RBI, it
the reserve bank of India.
leads to reduction in cost of borrowing by banks
294. Fiscal policy functions is not required for
from RBI.
opening a bank account.
284. The objective of securitisation of
295.
FINANCIAL assets is recycling of FUNDS and
Securities.
reduce concentration risk.
296. 91, 182 and 364 days are the maturity
285. As per SEBI guidelines, the maximum
period of treasury bills issued by Govt. of India
shares buy-back period has been reduced to 12
297.
months from 6 months.
management bill can be Less than 91 days
286. A money deposited at a bank that cannot be
298. The market for short term financial assets/
withdrawn for a preset fixed period of time is
instruments, that are close substitutes of money,
known as a Term deposit.
is called money market
Gilt-edged
The
mortgage,
market
maturity
asset-backed
deals
period
of
in
Govt.
cash
287. A worldwide financial messaging network

which exchanges messages between banks and
financial
institutions
is
known
as
SFMS
Structured Financial Messaging System.

288. Ministry of Rural development ministers
along with planning commission of India has
decided to set up a corpus fund of Rs 500 crore
for tribals in Naxal hit areas .
289. India decided to vote against Sri Lanka in
the
meeting
of
bodies/agencies
one
of
because
the
of
UN
governed
Violations
of
299. Under call money market, the funds are
human right in srilanka.
transacted by banks on an overnight basis.
290. The term `smart money` refers to Credit
300. Under notice money market, the funds are
cards.
transacted by banks for 2 to 14 days.
291. `money market Instrument`
301.
Treasury
bills,
commercial
paper,
bankers
acceptances, deposits, certificates of deposit, bills
Scheduled
banks
are
listed
on
which
Second schedule of the Reserve Bank of India

Act 1934?
of exchange, repurchase agreements, federal

17
R. A. C. E
302.
Maximum
note
printable
by
RBI
are
317.
Full
form
of
OLTAS-
Online
Tax
Rs.10000
Accounting System
303. CRR must maintain on daily basis at 4% of
318. NBFC deposits are Uninsured and not
NDTL
backed by security.
304. In respect of bills purchased or discounted if
319. Yes Bank has won the Bank of the year in
the bill remain overdue for more than 90 days
UK
then it is called NPA
320. Yes Bank has entered the innovative Green
305. Loans in which initially the rate of interest is
Bonds space with the London Stock Exchange to
low as years go on they will increase the rate are
help finance renewable energy projects in India
known as Teaser Loan
321. Axis Bank launched first display variant
306. Intangible Assets cannot be seen, touch
debit card?
are measured physical.
322. RBI revised the priority sector lending
307. No limit for maximum and minimum limit
targets for RRB to 75%
of NEFT
323. China s currency beat the Indian rupee in
308. If financial assets are more than 50% of its
race for reserve currency status
total assets then that company is treated as
324. HSBC Bank
NBFC
banking business in India
309. SARFAESI Act applies to all loans up to
325. RBI gave in-principle approval to set up and
Rs.1 lakh and above
operate Trade Receivables Discounting System
310. Notice Money is borrowed or lent for
(TReDS)
period between 2 days and 14 days.
Corporation
311. The initial share capital for RBI was Rs.5
Industries Development Bank of India (SIDBI),
crores
Axis Bank and Mynd Solutions.
312. EXIM Bank offers buyers credit and lines of
326. HDFC is the first bank to issue Masala
credit to foreign governments and banks.
bonds?
313. NHB issuance
to housing
327. Dena Bank has got board approval for
finance institutions to ensure their growth on
dilution of government holding to up to 52 per
sound lines.
cent and raise capital up to Rs.2500 crore from
314. The rate of inflation increases when the
various bonds.
purchasing power of money Decreases
328. Current Repo Rate 6.75%
315. Full form of QIB is Qualified Institutional
329. First Indian bank to open overseas branch-
Buyers
Bank of India
316. Insurance cover for bank deposits in India is
330. ECS - Electronic Clearing Service
of direction
to
is shutting down its private
NSE
Strategic
Limited
(NSICL)
Investment
and
Small
provided by DICGC

18
R. A. C. E
331. Conversion of physical form of share into
345.
electronic form is called Demat
proportion of their total assets in the form of
332.
FINO
stands
for
Financial
Inclusion
cash
CRR-Banks
partly
to
always
meet
the
keep
statutory
certain
reserve
Network Operation
requirement and partly to meet day to day need
333. A closed economy is Neither Imports nor
for making cash payments.
Exports take place
346. NEFT(National Electronic Fund Transfer) is
334. RBI carry out open market operations
used for electronic transfer of funds between two
335.
bank accounts. MICR code is not mandatory for
Purpose
of
setting
up
Narsimhan
committee-2 : Banking reform process
a NEFT transaction?
336. Depreciation occurs through rising prices
347. The recent Gold scheme will offer option to
as a result of inflation, increased scarcity on
resident Indians to deposit gold and earn an
increasing earning
interest of 2.5 percent.
337. Amortisation-Exploitation of differences
348. RBI has imposed Rs. 1 crore penalty on
between the prices of financial assets or currency
Dhanalakshmi Bank
within or between markets by buying where
349. Corporation Bank chairman and MD- S R
prices are low and selling prices are higher.
Bansal
338. The Current account is made up of visible
350. IFMR capital, Asian Development Bank(ADB)
trade (merchandise exports and imports) and
and IndusInd Bank Signed a partial guarantee
invisible trade(I.e. income and expenditure for
programme to provide local currency financing to
services such as Banking and insurance etc.)
Microfinance Institutions(MFI)
339. What was Bancor- International currency
351.
340. Cheque drawn by a bank is known as
subscribe to the National Pension System(NPS).
Bankers draft
352. HDFC ranked 27th globally among 250
341.
Soft
currency
is
currency
whose
Recently,
RBI
has
allowed
NRIs
to
banks as the safest bank in the world.
exchange rate is tending to fall because of
353. RBI recently signed MOU with Bangladesh
persistent Balance of Payments deficits.
country for exchange of supervisory information.
342. World Bank is also known as International
354. Bank of Baroda
Bank
commerce is among the scrutiny of SEBI and
for
Reconstruction
and
and Oriental bank of
Develop(IBRD).
stock exchanges in the alleged Forex based Black
343. NABARD gives RRBs short and medium
money case.
loans.
355. No Risk, No reward. This quote is most
344. Open market operation is the purchase and
closely associated with Risk-return trade-off
sale of government securities by the RBI from/to
356. For Illiterate Account no cheque book is
the public and banks on its own account.
issued

19
R. A. C. E

20
R. A. C. E
357. No specific target has been given to the
368. The international standard which defines the
foreign banks operating in India in terms of
shape and size of the I-Cards is ISO/IEC 7810
agriculture loans
369. Visa Card is the first credit card facility to
358. Priority Sector Loans and Statutory
be recognised worldwide?
Liquidity Ratioare often described as Double
370. The cirrus logo on ATM / debit cards
Financial Repression for Banks in India
signifies have cash access facility in and
359. In banking language, which Non fund
outside India.
based lending
371. Original headquarters of RBI were located at
is called Contingent Liability of
the banks
calcutta
360. In terms of agricultural loans in India, the
372. Indian Rupee was devalued for the first time
short term credit refers to the loans made for a
1966
period less than 15 Months
373. 5 crore was the initial share capital of
361.
To
call
loan
NPA,
the
interest
or
Reserve Bank of India
instalment of principal should remain overdue for
374. Imperial Bank of India was the name of
a minimum period of more than 90 Days
State Bank of India (SBI) before it was created
362. Rs. 10 lakh, and Rs. 20 Lakh is the loan
by SBI Act
limit for education under Priority Sector Lending
375. Nainital Bank is a subsidiary of Bank of
(PSL)
Baroda
for
studying
in
India
and
abroad
respectively.
376. Less than 1% share of the Foreign Banks
363. Reserve Bank of India (RBI) monitors
in the branch network in India
Priority
377. NABARD regulates the Regional
Sector
Lending
(PSL)
in
commercial
Rural
banks
Banks
364. If a bank ties up with a retail vendor and
378. The owners of the cooperative bank are also
then both of them sponsor a credit card, then
its Customers
such card would be known as Co- Branded Card
379. The Unit Banking System originated from
365. In terms of Banking Terminology, Affinity
United States
Card refers to The Credit Cards that are
380. USA has largest shadow banking market in
linked to special organizations
the world
366. The concept of Credit Card originated from
381. Bad loans in banking terminology are
USA
generally known as: NPAs
367. The business entity that is authorized to
382. The foreign exchange reserves of India are
accept cards for the payment of goods and
kept in the custody of: RBI
services is called Merchant
383. When more than one bank is allowing credit

facilities to one party in coordination with each

21
R. A. C. E
other
under
formal
arrangement,
the
the rest of the world is called Balance of
arrangement is generally known as: Consortium
Payment
384. Reverse Repo Rate means Absorption of
392. The inflation led by rising food prices caused
liquidity
by
from
the
market
by
sale
of
increased
demand
for
agricultural
government securities
commodities is called Agflation
385. The bank rate means Rate at which RBI
393. A money market instrument used most
purchases or rediscounts bill of exchange of
often in India, that represents an obligation
commercial banks
between a borrower and lender, CBLO can be

traded in the secondary market is called as394. H R Khan Committee has been set up to
examine the un-claimed amount in PPF, post
office and saving schemes?
395. Financial services at affordable costs to the
sections of disadvantaged and low-income group
of society is called as Financial Inclusion
396. Retail banking sector is not characterized by
Multiple Brands A. Multiple products
386.
Open
market
operations,
one
of
the
measures taken by RBI in order to control credit

expansion
in
the
economy
means
Sale
or
purchase of government securities

387. Central Co-operative banks work at District
level
388.
PAN
card
issued
by
the
income
tax
department cannot be used for Proof of a

registered tax payer
389. The EXIM bank of India was established in
1982
390. Government of India, for the first time
nationalized 14 large commercial banks in the
year 1969.
391. The sheet of record which contains all
monetary transaction between an country and
397. A. R Gandhi committee is heading the

conversion of Urban Cooperative Banks into
Regular Banks?
398. 59 entities have been barred recently for
trading,
buying,
selling
or
dealing
in
the
securities markets, either directly or indirectly by

Securities and Exchange Board of India for
manipulating markets and evading taxes.
399. M-wallet (mobile wallet) application called
Buddy lauched by SBI .
400. When the conversion rate of our currency
goes high in compared to other currency , it is
known as Rupee Depreciation
401. A bond giving the investor the option to
convert the bond into equity at a fixed conversion
price is Convertible Bond
402. RBI appoints Banking ombudsman.

22
R. A. C. E
403. Treasury bills are issued by RBI.
trade,
404. Insurance does not include Priority Sector
providing advice, information or assistance on
Lending.
starting new business, acquisitions, mergers etc.
405. CORE stand for Centralized Online Real-
are provided is called as Merchant Banking
time Exchange
418. RBI imposes moratorium on operations of a
406. payable in any branch of a particular
bank if the affairs of the bank are not conducted
bank is Multi city cheque.
as per banking norms.
407. If you are taking a housing loan by
419. Wholesale Banking focuses on providing
depositing your house documents by mortgaging
for financial needs of industry and institutional
your house it is known as Pledge
clients.
408. Endorser is not related to bill of exchange.
420. The dilution or selling of the government
409. Coins in India are minted at Noida and
stake in public sector undertakings is known as
Kolkata
Disinvestment
410. One percent of shareholding in NABARD is
421. Royal Bank of Scotland (RBS) to sell
by RBI
private banking business in India to Sanctum
411. Leverage Ratio is a financial ratio which
Wealth
gives an idea or a measure of a companys ability
422. Indusland Bank acquires RBS bullion
to meet its financial losses.
financing business for Rs 4,100 crore
412. Security which one offers for taking an
423. RBI formed Financial Inclusion Fund with
advance or loan from someone is known as
Rs. 2000 crore corpus
Mortgage .
424. Computer Science Corporation (CSC)
413.
When
undertake
financial
activities
institutions
related
to
and
banks
banking
like
arranging
and
providing
underwriting,
and Hindustan Computer Limited (HCL)forms

joint venture to provide technology services,
investment, issue of debit and credit card etc. it
solutions to banks.
is called as Universal Banking.
425. Infrastructure Development Financing
414. A bond that is sold at good discount as it
Company (IDFC) gets banking licence from RBI
has no coupon is Zero coupon Bond
426. Anand Krishnamurthy appointed CEO and
415. A right of the creditors to retain possession
MD of Catholic Syrian Bank (CSB) bank.
of all goods given in security to him by the debtor
427. Brazil, Russia, India, China and South
for any outstanding debt is General Lien.
Africa (BRICS) bank starts its operations from
416.
Shanghai, China
Banking
sector
comes
under
Service
Sector
428. RBI, Central Bank of Sri Lanka ink currency
417. A type of banking in which various types of
swap agreement
financial services like accepting bills arising out of

23
R. A. C. E
429. National Bank for Agriculture and Rural
death
Development (NABARD) to provide Rs 30,000
introduced for bank account in our country.
crore credit to farmers for irrigation
436. Cash reserve ratio (CRR) rates are
430. e Mudra launches eSign Services
decided by the RBI called as Policy Rate?
431.The
was
are financial institution that does not hold a
Bank
banking license
the
bank
Nomination
nationalized in 1955 and rechristened as State

on
Imperial
holder,
437. Non-Banking Financial Companies (NBFCs)
India
bank
account
was
of
largest
of
recommendation
of
Gorewala Committee.
438. In comparison with Liquidity Adjustment
432. SEBI was established in the year 1992
facility (LAF), Marginal Standing Facility
433 Punjab National Bank is the first public
(MSF) has Higher Rate of Interest
sector bank to be established a fully Indian bank.
439. Indian Depository Receipt (IDR) is the
434. RBI sells government securities its meaning
Proof of ownership of foreign companys
is Liquidity gets diminished
share
435. With a view to facilitate payment of balance
440.
in the deposit account to the person named by
launches Kotak Bharat mobile banking app for
the depositor without any hassles in the event of
un-banked regions
Kotak
Mahindra
Bank
(KMB)

bank
24
R. A. C. E
441.
Export
insurance
of
which
services
can
like
earn
shipping
foreign
and
exchange
452.
Union
Government
Kalyanaraman
as
appoints
National
Housing
Sriram
Bank
without the transfer of goods from one country to
(NHB)
another is known as Invisible Export
453. Bharat Sanchar Nigam Limited (BSNL)
442. By opening and investing in the Tax Saver
launches mobile wallet service Speed Pay
Deposit Account Scheme in a bank, a customer
454. 50 nations, including India sign 60-article
would get benefit under Income Tax.
agreement on China-led AIIB
443. SIDBI is made for empowering Micro,
455. . Australia to join China led AIIB.
Small and Medium enterprises in India?
456. RBI extends deadline for exchanging pre-
444. Bancassurance can be sold to All existing
2005 currency notes till December 2015
and prospective bank customers
457. HDFC Bank launches 10-second paperless
445. Savings account with zero balance can be
instant loan Scheme
opened for Under Financial Inclusion scheme
458. RBI allows NRIs to subscribe Chit funds
446. Capital Adequacy Ratio (CAR) is the
459. Mahendra Kumar Sharma appointed as non-
amount of capital a bank or other financial
executive Chairman of Industrial Credit and
institution has to hold as required by its financial
Investment Corporation of India (ICICI)
regulator.
Bank.
447. The cheque having a date subsequent to the
460. Kotak Mahindra,
date on which it is drawn is known as Post-
cross-border business
dated cheque
461.
448.
Participatory
notes
is
financial
ING Bank ink MoU for
Union Government to form Bank Board
Bureau:
instruments used by the investors that are not
462.
registered with the SEBI to invest in Indian
Currency Contactless Card service in India
securities.
463.
449. Micro Credit is the extension of very small
Development Authority of India (IRDAI)
loans to the unemployed, to poor entrepreneurs
allows Banks to tie up with insurers
and to others living in poverty who are not
464.
considered bankable.
Corporation of India (ICICI) Bank launches
450. Treasury Bills is the lowest risk category
Saral-Rural Housing Loan Scheme for weaker
instruments for the short term. RBI issues them
sections
at a prefixed day and for a fixed amount.
465. Union Government launches Suraksha
451. China nominates Jin Liqun for President of
Bandhan drive in Mission Mode
Asian
467. RBI allows banks to merge, shift or close
(AIIB).
Infrastructure
Investment
Bank
Axis
The
Bank
launched
Insurance
Industrial
Credit
the
First
Regulatory
and
Multiand
Investment
branches in urban areas

25
R. A. C. E
468.
Lok
Sabha
passes
Negotiable
484. Reserve Bank of India (RBI) was established
Instruments (Amendment) Bill, 2015
on
469. HSBC India plans to launch green bonds
Commission
470.
485. Insurances service provided by various bank
RBI
to
issue
Rs.
10
coins
to
mark
International Yoga Day
the
recommendations
of
Hilton
Young
is commonly known as Bancassurance
471. In Banking terminology, NPA means NonPerforming Asset
486.
472. ASHA schemes has been launched for
Non-Banking
Financial
Company
(NBFC) is the full form of NBFC as used in the
providing health services in rural areas.
financial sector?
473. Mid-Day Meal schemes has been launched
487. In India, the bank NABARD does not provide
for the school-going children
refinance to Export-import bank
474.
Sugam is a scheme launched for
Small
488. Syndicate bank Iemblem figures a dog
tax payers
and the words faithful, friendly in it.
475. Unit Linked Insurance Plan is the full
489. If the Cash Reserve Ratio (CRR) is lowered
form of ULIP, the term which was in the news
by the RBI, its impact on credit creation will be
recently?
Increases
476. Insurance service provided by various banks
490.
is commonly known as Bancassurance
lends to banks
477.
Rate
of
interest
is
determined
by
Repo Rate is the rate at which The RBI
491. A customer wishes to purchase some US
Commercial Banks
dollars in India. She/he should go to RBI or any
478.
branch of a bank which is authorized for
india
regional rural banks were established in

on
the
recommendation
of
which
such business
committees Recommendations of Narsimham
492. NABARD make major credit policies for the
Committee
RRBs.
479. Regulatory Authority for Regional Rural
493.
Bank is of RBI and NABARD
money obtained through illegal sources in to
480. Mutual Funds are regulated by Securities
legal money
and Exchange Board of India
494. NTPCL entity became the first-ever public
481. Maximum age for retirement for MD/CEO of
sector
all private banks is 70
debentures as done by it on 26 March 2015.
482. C.D.Deshmukh is the first Indian Governor
495. Treasury bills are the government bonds
of RBI.
which are used to raise funds from money
483. Kochi is the headquarter of Federal Bank.
market.
Money Laundering means
undertaking
(PSU)
to
Converting
issue

bonus
26
R. A. C. E
496. The ratio of the cash reserves that banks
501. The term plastic money relates to credit
are required to keep with RBI is known as CRR
card.
Debentures is a capital market instrument.
502. Credit card business can be conducted by
497.
banks only if their net worth is at least Rs.100
State-issued
money
which
is
neither
convertible by law to any other thing, nor fixed in
crore.
value in terms of any objective standard is called
503. The time gap between closure date of a
Fiat Money
public issue and its listing on stock exchange, has
498. An account in which trading of shares in
been reduced by SEBI from 22 days to 12 days.
their electronic form is done is known as Demat
504. Listed companies are required to disclose
Account
their quarterly financial results within 45 days
499. The maximum compensation by Banking
from close of the quarter.
Ombudsman for a complaint is Rs.10lakh
505. Reliance Industries became the first
500. The Reserve Bank of India was established
corporate to sign the revised listing agreement
on 1935 in accordance with the provision of The
with the BSE recently as mandated under the
Reserve Bank of India Act, 1934
newly introduced Listing Regulation notified by

SEBI.

27
R. A. C. E
506. CAMELS is a type of Bank Rating System.
519. State cooperative Banks is known as
In CAMELS - Capital adequacy Asset quality
highest or apex body of cooperative banks.
Management
520. Small Industries Development Bank of
quality
Earnings
Liquidity
Sensitivity to Market Risk
India (SIDBI) provides refinance facilities under
507. In banking parlance, NPA stands for
ARS - Automatic Refinance Scheme.
Non Performing Asset
521. Decline in the price of goods and services is
508. LAF - Liquidity Adjustment Facility is an
technically known as Deflation.
indirect instrument of monetary policy, which is
522. Gross Domestic Saving and Net Capital
used by RBI to regulate the liquidity in banking
Flow are the component(s) of Gross Domestic
system.
Capital Formation (GDCF).
509. Money lenders are NOT a part of the
523. Small scale industries like handicraft and
Scheduled Banking structure in India.
cottage industries account for nearly 20% of the
510. MAT is an acronym which stands for
countrys exports.
Minimum Alternate Tax
524. Index Residex is associated with: land
511. Often, we read in the newspapers that
prices.
several Indian companies are taking the FCCB
525. Zarin Daruwala was named as new India
route to raise capital. What does the term FCCB
CEO of Standard Chartered.
stand for Foreign Currency Convertible Bond.
526. ATM cards are issued to a person who
512.
maintains any of the Saving bank accounts,
The
Banking
Ombudsman
resolves
complaints of customers.
Current accounts with the bank.
513. Cash reserves with RBI is NOT a source
527. As per the announcement made by RBI on
of funds of a commercial bank.
3rd Sep15, the Reserve Bank of India will shortly
514. KYC (Know Your Customer) norms were
put into circulation Rs.5 coins to commemorate
implemented in the Indian banking system in
golden jubilee of Indo-Pak War 1965.
2002 as per the directive of RBI.
528. On July15 the Supreme Court rejected plea
515. When was the first nationalization of
of applicants for OBC status in Bank PO exam.
banks done? 19th July, 1969
The applicants belong to Jaat community.
516. Two hours is the time taken for effecting
529. IPO- initial public offering belongs to the
fund transfer from one account to another under
time when a company makes the first offering of
RTGS.
the shares to the public.
517. Commercial papers are normally issued in
530. Balance sheet depicts the financial position
the multiple of 5 crore.
of a bank or business enterprise at a given point
518. Headquarters of WTO located in Geneva.
of time.
531. The full form of NAV - Net Asset Value.

28
R. A. C. E
532. State Bank of India is the largest public
545. Allahabad bank is India`s oldest joint
sector bank in India.
STOCK bank.
533. POS Point of Sale allow bank customers
546.
to effect transfers of funds from their deposit
MONEYMARKET India is call money/ notice
accounts and other financial transactions at retail
money market.
establishments.
547. One of the main factors that led to rapid
534. Electronic financial transactions are done by
expansions Indian exports is liberalization of the
E-Banking.
economy.
535. The Reserve Bank of India recently named
548. Tea industry is the largest export industry
two banks as domestic systematically important
of India.
banks. The impact on the two banks (SBI &
549. Objective of a central bank of a country
ICICI) will have to maintain additional capital.
(a) the central bank is given powers to control
536. M1 is known as narrow money.
and regulate the working of the commercial
537.
Section
defines
offence
of
money
The
most
active
segment
of
the
banks
laundering.
(b) central bank generally is a organ of the
538. 500 crores is the notified amount for the
government and run by government officials
auction of 364-day treasury bill.
(c) central bank generally controls the credit
539.
Commercial
papers
is
an
unsecured
(d) central bank is generally banker of the
promissory notes.
government
540. One can enjoy the over draft facility in:
550. Decrease will be the impact on the cash
Current Account.
reserves of commercial banks if RBI conducts a
541. Mumbai is known as the commercial capital
sale of securities.
of India.
551)
542.
CRAR
stands
for
Capital
to
Risk
Margins
requirements
is
major
qualitative control measure in India.
(weighted) Assets Ratio
552) The bulk of India`s exports would come
543. Based on bank rate, reserve banks of India
under
purchase
manufactures.
the
order
commercial
papers
and
raw
material
and
intermediates
rediscount bills of exchange from the banks.

544. Risk management is not a pillar of based
II CRAR.

29
R. A. C. E
*** Exclusively Prepared by RACE RED Team ***

30

Banking Batterfea

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Banking Batterfea

Uploaded by

Copyright:

Available Formats

IBPS Clerical Cadre

1. Visa is a leading electronic payment

14. SARFAESI Act Acts is specially launched to

agencies is not associated with the world of

Exclusively prepared for R.A.C.E Students

28. Legal amount in a cheque stands for amount

Trusts Act 1882

22. On the basis of Banking Regulation Act

29. On a cheque issued by a customer, the words

and RBI Act, RBI regulates and controls the

bearer or order are not written. This cheque will

be treated as An order cheque

23. Banks can undertake the business of banking

and banking as a term has been defined under

Banking Regulation Act Section 5(b)

transaction with the rest of the world

24. Banks have prohibited to staple bank notes

31. How many RRBs are working in the economy

implementation under Section 35 A of Banking

32. RBI directives - is a selective credit control

25. All banking company are to prepare balance

33. Which pair is not correct?

sheet and profit & loss account as on Mar 31

EXIM Bank Financing for export import RBI

IDBI Industrial finance

26. The annual return of unclaimed deposits u/s

FCI Financial assistance to commercial

submitted to RBI within 30 days after close of

34) Due to To meet foreign exchange crisis,

the calendar year

India had to export gold to bank England in

27. A cheque is defined u/s 6 of NI Act

35. Public account deposit - is not accepted by

38. The first public sector bank in India which

obtained license for Internet Banking from RBI is

Punjab National Bank

deposit, Saving deposit)

36. Moral situation is Persuasion of banks to

purchase in the open market of Government

adhere to central bank desires

37. The following instruments of quantitative

40. Loan taken by the person, not telling the

credit control are used by the RBI/

purpose of taking loan is called Personal Loan

1. cash requirement ratio

41. Public Sector Banks include 20 Nationalized

2. Statutory liquidity ratio

Banks + State Bank of India + 5 SBI

3. Open MARKET operations

Exclusively prepared for R.A.C.E Students

(c) CRISIL (Credit Rating Information Services of

Banks, Public Sector Banks, RRB

43. Finance commission distributes the taxes

(e) S & P (Standard & Poor's)

between centre and states.

55. What is MZM in money market- Money with

44. The facility available in the BSBDA is deposit

amount, withdrawing of cash, ATM Card,

56. The Tier-1 capital of banks does not include

withdrawal form facility

45. Mutual funds is a third party product often

(a) Paid-up capital

(b) Revaluation reserves

46. The co-operative bank is governed by the