1.

An account that can be opened by business

Functions c) Issuance, Exchange and Destruction of

organizations and also individuals is known as a?

currency notes

a) Term deposit b) Checking Account c) Saving Bank

d) Monetary Authority Functions e) Supervisory and

deposit d) No Frills Accounts e) Current deposit

Control Functions

2. A worldwide financial messaging network which

9. Which of the following is NOT required for

exchanges messages between banks and financial

opening a bank account?

institutions is known as?

a) Identity Proof b) Address Proof c) Recent

a) CHAPS b) SWIFT c) NEFT d) SFMS e) CHIPS

Photographs d) Domicile Certificate e) None

3. Buy now & pay later refers to?

10. What is the maximum deposit amount insured

a) Foreign Currency b) Internet Banking c) US Dollars

by DICGC?

d) Traveler's cheques e) Credit Cards

a) Rs. 2,00,000 per depositor per bank b) Rs.

4. Which one of the following is not 'Money Market

2,00,000 per depositor across all banks

Instrument'?

c) Rs. 1,00,000 per depositor per bank d) Rs.

a) Treasury Bills b) Commercial Paper c) Fixed

1,00,000 per depositor across all bank e) None

Deposit d) Equity Shares e) None

11. The present Foreign Trade Policy of India will

5. Which one of the following is a retail banking

continue till?

product?

a) Dec 2012 b) Mar 2013 c) Mar 2014 d) Jun 2013

a) Home Loans b) Working capital finance c)

e) Dec 2014.

Corporate Term Loans d) All the above e) None

12. With reference to a cheque who is drawee?

6. Finance Ministry has asked the RBI to allow

a) The bank that collects cheque. b) The payee's

common ATMs that will be owned and managed by

bank. c) The endorsee's bank. d) The endorser's

non-banking entities hoping to cut transaction costs

bank.

for banks. Such ATMs are known as?

e) The bank upon which the cheque is drawn.

a) Black label ATMs b) Offsite ATMs c) On site ATM's

13. In which of the following fund transfer

or red ATMs d) Third party ATMs e) White label

mechanisms, funds can be moved from one bank to

ATMs

another and where the transaction is settled

7. Technological advancement in the recent times

instantly without being bunched with any other

has given a new dimension to banks, mainly to

transaction?

which one of the following aspects?

a) RTGS b) NEFT c) TT d) EFT e) MT

a) New Age Financial Derivatives b) Service Delivery

14. Banking Ombudsman Scheme is applicable to

Mechanism c) Any Banking d) Any type banking

the business of?

e) Multilevel Marketing

a) All scheduled commercial banks excluding RRBs.

8. Which of the following is NOT a function of the

b) All Scheduled commercial banks including RRBs.

Reserve Bank of India?

c) Only Public Sector Banks d) All Banking Companies

a) Fiscal Policy Functions b) Exchange Control

e) All scheduled banks except private banks.

15. Nationalization of banks aimed at all of the

21. By increasing repo rate, the economy may

following except?

observe the following effects ______

a) Provision of adequate credit for agriculture, SME

a) Rate of interest on loans and advances will be

& exports. b) Removal of control by a few capitalists.

costlier. b) Industrial output would be affected to an

c) Provision of credit to big industries only. d)

extent. c) Banks will increase rate of interest on

Access of banking to masses.

deposits. d) Industry houses may borrow money

e) Encouragement of a new class of entrepreneurs.

from foreign countries. e) All of these.

16. Which one of the following banks is headed by a

22. Increased interest rates, as is existing in the

Woman CEO?

economy at present will_______

a) Bank of Baroda b) HDFC Bank c) Central Bank of

a) Lead to reduction in borrowings b) Lead to lower

India d) PNB e) ICICI

GDP growth. c) Mean higher cost of raw materials.

17. Base Rate is the rate below which no Bank can

d) Mean lower cost of raw materials. e) Mean higher

lend their funds. Who sets up this 'Base Rate' for

wage bill.

Banks?

23. Which of the following schemes is launched to

a) Individuals Banks Board b) Ministry of Commerce

provide pension to the members of unorganized

c) Ministry of Finance d) RBI e) Interest Rate

sectors in India?

Commission of India.

a) Swabhiman b) Jeevan Dhara c) Jeevan Kalyan d)

18. What is a 'Debit Card'?

ASHA e) Swalamban

a) It is a card issued by a Rating Agency.

24. A cheque returned for insufficiency of funds.

b) It is a card which can be used for withdrawing

Payee will have right to issue notice and approach

cash or making payment even in the absence of any

court of law for justice under section 138 of which

balance in the account.

act?

c) It is a card which can be used for withdrawing

a) Indian Penal Code b) Negotiable Instrument Act c)

cash or making payment at Point of Sales (POS) if

Criminal Procedure Code d) Payment and Settlement

there is balance in the account.

Act e) Indian Contract Act

d) It is a card issued to borrowers e) It is a card which

25. Mr. Rajendra had filed a complaint with Banking

can be used for making STD calls.

Ombudsman and is not satisfied with the decision.

19. Bad advances of a Bank are called?

What is the next option available for him to get his

a) Standard accounts b) Book debts c) Non

problem redressed?

Performing Assets d) Out of order accounts e)

a) Write to the CMD of the Bank. b) File an appeal

Overdrawn accounts

before the Finance Minister. c) File an appeal before

20. Axis Bank is a?

the Banking Ombudsman again. d) File an appeal

a) Public Sector Bank b) Private Sector Bank c) Co-

before the Dy. Governor RBI.

operative Bank d) Foreign Bank e) Gramin Bank

e) Simply close the matter as going to court involves

time and money.

26. Which of the following is an example of

33. Cash Reserve Ratio (CRR) and Statutory

Financial assets?

Liquidity Ratio (SLR) are terms most closely related

a) National Saving Certificate b) Infrastructure

to which of the following industries/ markets?

Bonds c) Indira Vikas Patra d) Krishi Vikas Patra

a) Capital Market b) Banking industry c)

e) All of these

Commodities market d) Money Market e) Mutual

27. Bank branches which can undertake foreign

funds

exchange business directly are known as:

34. What is the maximum period for which

a) Authorized dealers b) Foreign dealers c) Overseas

domestic term deposits are normally accepted by

branches d) Approved dealers e) Exchange branches

the banks in our country?

28. Insurance cover for bank deposits in our country

a) 3 yr b) 5 yr c) 7 yr d) 10 yr e) 12 yr

is provided by ____

35. If you wish to purchase some US Dollars for

a) SBI b) Govt of India c) GIC d) LIC e) DICGC

your travel abroad, you should approach?

29. The Financial Literacy does not include which of

a) The Ministry of Finance b) The US Embassy c) Any

the following?

Bank Branch authorized to do such activity

a) How to invest the funds b) How to use the limited

d) The Reserve Bank of India e) External Affairs

funds carefully c) How to minimize the risks

Ministry

d) How to reinvest the money earned e) None of

36. What does the letter 'L' stands for in the term

these

LAF commonly used in financial/economic news?

30. 'ADB' refers to-

a) Liquidity b) Least c) Liabilities d) Long e) Liquid.

a) Amedical Development Bank b) Amedical

37. Which of the following is not classified as a

Depository Bureau c) Additional Debit Balance

Commercial Bank?

d) Only a &b e) Asian Development bank

a) Public Sector Bank b) Foreign Bank c) Private

31. When a banker talks about CDR, what is he

Sector Bank d) Regional Rural Bank

talking about?

e) Urban Cooperative Bank

a) Corporate Debt Restructuring b) Corporate Debt

38. Which of the following is not the name of the a

Rollover c) Company Debt Rollover

Banking Organization?

d) Corporate Deposit Restructuring e) Company

a) HDFC b) IDBI c) YES d) SEBI e) ICICI

Deposit Restructuring

39. Money laundering means

32. Expand the term ALM as used in

a) Concealment of income source mainly to avoid

Banking/Finance sector?

income tax

a) Asset Liability Management b) Asset Liability

b) Money acquired from undisclosed sources and

Maturity

deposited in foreign banks

c) Asset Liability Mismatch d) Asset Liability

c) Money acquired from undisclosed sources and

Manpower e) Asset Liability Maintenance

deposited in foreign banks

d) Process of conversion of money obtained illegally

to appear to have originated from legitimate

47. Which of the following organisations/agencies

sources to convert black money into white money

is not associated with the world of Banking and

e) Money acquired from drug trafficking

Finance?

40. Monetary Policy as an arm of the economic

a) SEBI b) AMFI c) RBI d) ECGC e) SPCA

policy is administered by

48. Banks recover term loan from the parties in

a) Government of India b) RBI c) SBI d) Govt of the

EMIs. What does the letter 'E' represent in the

respective states e) None

term?

41. Which of the following is not a primary function

a) Easy b) Effective c) Equated d) Essential e)

of a Bank?

Economical

a) Granting loans b) Collecting cheques/ drafts of

49. What is the Bank Rate at Present?

Customers

a) 2% b) 4% c) 8.25% d) 8% e) None of these.

c) Arranging VISA for students for abroad education

50. Which of the following is not a scheduled

d) Issuing bank drafts e) Selling Gold/Silver Coins.

commercial bank?

42. Reserves that can act as a liquidity buffer for

a) IDBI b) AXIS c) HDFC d) NABARD e) Kotak

Commercial Banks during crisis times are

Mahindra Bank

a) CAR b) CRR c) CAR & CRR d) CRR & SLR e) SLR

51. Which of the following certainly is an effort in

43. What is the full form of CRR as used in banking

the direction of Financial Inclusion?

sector?

a) Internet Banking b) Anywhere Banking c) No-frills

a) Crucial Reserve Rate b) Cash Reserve Ratio c)

Account d) Foreign Currency Accounts e) All of these

Current Reserve Ratio d) Core Current Ratio e) None.

52. Who amongst the following Padma Bhushan

44. What is the full form of LAF as used in the

awardees is a famous Banker?

banking world very frequently ?

a) Azim H Premji b) Kapila Vatsyayan c) Chanda

a) Liquid Advances Finance b) Liquidity Adjustment

Kochhar d) Waheeda Rahman e) Brajesh Mishra

Facility c) Legal Adjournment Formality

53. Which of the following Acts has specially been

d) Local Advance Finance e) Late Arrival of Finance

launched to facilitate banks in recovery of bad

45.Where is the headquarters of International

loans?

Monetary Fund?

a) RBI Act b) Banking Regulation Act c) Companies

a) Geneva b) Paris c) London d) Manila e)

Act d) Income Tax Act e) SARFAESI Act

Washington DC

54. The financial assistance or loans of Rs. 10,000 by

46. Many Regional Rural Banks are given licence to

a bank to a very small borrower will be called?

open branches in small cities and towns. These

a) Business Finance b) Govt. Finance c) Micro

licences are given by:

Finance d) Small Finance e) KYC finance

a) Cabinet Committee on Economic Affairs b) RBI c)

NABARD d) Indian Banks' Association e) None of
these

55. Who amongst the following cannot work as a

term deposit accounts.

Business Correspondent as given in the scheme

e) Current bill accounts and term deposit accounts.

launched by the banks?

61. Fixed deposits and recurring deposits are?

a) Kirana Store b) Post Office c) Self Help Group d) A

a) Repayable after an agreed period b) Repayable

Bank Officer e) Co-operative Society

on demand c) Not repayable

56. Some banks are financing big projects like

d) Repayable after death of depositors e) Repayable

construction of roads, bridges etc. Finacing such

on demand or after an agreed period as per bank's

projects means banks are helping exactly in:

choice

a) Infrastructural Development b) Project

62. Accounts are allowed to be operated by

Management c) Developing Core Sector Industry d)

cheques in respect of?

Financial Inclusion

a) Both savings bank accounts and fixed deposit

e) All of these

accounts. b) Savings bank accounts and current

57. As we know, a lot of new concepts are being

accounts.

used in the field of banking these days, which of the

c) Both savings bank accounts and loan accounts. d)

following is NOT one such concept/product directly

Both savings bank accounts and cash accounts only.

associated with banks?

e) Both current accounts and fixed deposit accounts.

a) RTGS b) SMS alert c) Demat Account d) ATM/Debit

63. Which of the following is correct statement?

card e) Number Portability

a) No interest is paid on current deposit accounts.

58. Which of the following is NOT a Nationalised

b) Interest is paid on current accounts at the same

bank?

rate as term deposit accounts.

a) Union Bank of India b) Central Bank of India c) YES

c) The rate of interest on current accounts and

Bank d) Syndicate Bank e) Indian Bank

savings accounts are the same.

59. Interest payable on savings bank accounts is?

d) No interest is paid on any deposit by the bank. e)

a) De-regulated by RBI b) Regulated by State

Savings deposits are the same as current deposits.

Governments c) Regulated by Central Govt d)

64. Banking services delivered to a customer by

Regulated by RBI

means of a computer control system that does not

e) Regulated by Finance Minister

directly involve banks branch is called?

60. The usual deposit accounts of banks are?

a) Universal banking b) Virtual banking c) Narrow

a) Current accounts, electricity accounts and

banking d) Brick & Mortal banking e) None

insurance premium accounts.

65. Financial inclusion means provision of ?

b) Current accounts, post office savings, bank

a) Financial services namely payments, remittances,

accounts and term deposit accounts.

savings, loans and insurance at affordable cost to

c) Loan accounts, savings bank accounts and term

persons not yet given the bank b) Ration at

deposit accounts.

affordable cost to persons not yet given the same

d) Current accounts, savings bank accounts and

c) House at affordable cost to persons not yet given

the same d) Food at affordable cost to persons not

Insurance

yet given the same

71. In respect of partnership business, LLP stands

e) Education at affordable cost

to persons not yet given the same

for:

66. When a bank returns a cheque unpaid, it is

a) Local Labour Promotion b) Low Labour Projects c)

called?

Limited Loan Partnership d) Longer Liability

a) Payment of the cheque b) Drawing of the cheque

Partnership

c) Canceling of the cheque d) Dishonour of the

e) Limited Liability Partnership

cheque

72. What is a stale cheque?

e) Taking of the cheque

a) A cheque issued without drawer's signature.b) A

67. Who is the Chairman of the committee

cheque with only signature of the drawer.

constituted by RBI to study issues and concerns in

c) A cheque which has completed 3 months from

the Micro Finance Institutions (MFI) Sector?

the date of its issue. d) Any one of the above. e)

a) YH Malegam b) Dr. KC Chakraborty c) C. Rangrajan

None

d) M. Damodaran e) Usha Thorat

73. Interest on savings bank account is now

68. Which of the following types of accounts are

calculated by banks on?

known as 'Demat Accounts'?

a) Minimum balance during the month b) Minimum

a) Accounts which are Zero Balance

balance from 7th to last day of the month

b) Accounts which are opened to facilitate

c) Minimum balance from 10th to last day of the

repayment of a loan taken from the bank. No other

month d) Maximum balance during the month

business can be conducted from there

e) Daily product basis

c) Accounts in which shares of various companies

74. Largest shareholder (in percentage

are traded in electronic form

shareholding) of a Nationalized bank is ?

d) Accounts which are operated through internet

a) RBI b) NABARD c) LIC d) Govt. of India e) IBA

banking facility e) None of the above

75. Banks in our country normally publicize that

69. NEFT means?

additional interest rate is allowed on retail

a) National Electronic Funds Transfer b) Negotiated

domestic term deposits of ____

Efficient Fund Transfer system

a) Minors |b) Married Women c) Senior citizens d)

c) National Efficient Fund Transfer solution d) Non

Government Employees e) Rural residents

Effective Fund Transfer system

76. When the rate of inflation increases ___

e) Negotiated Electronic Foreign Transfer system.

a) Purchasing power of money increases b)

70. Distribution of insurance products and

Purchasing power of money decreases

insurance policies by banks as corporate agents is

c) Value of money increases d) Purchasing power of

known as?

money remains unaffected

a) General insurance b) Non life insurance c)

e) Amount of money in circulation decreases

Bancassurance d) Insurance Banking e) Deposit

77. A centralized database with online connectivity

84. One of the major challenges banking industry is

to branches, internet as well as ATM network which

facing these days is curbing deliberate efforts of

has been adopted by almost all major banks of our

some people to bring money earned through illegal

country is known as ___

activities in circulation. Which of the following act

a) Investment Banking b) Core Banking c) Mobile

is passed to prevent this activity?

Banking d) National Banking e) Specialized Banking

a) Payment & settlements Act b) Control money

78. Which of the following is NOT considered a

supply Act c) Narcotics and Psychotropic substance

money market instrument?

Act

a) Treasury Bills b) Repurchase Agreement c)

d) Prevention of Money laundering Act e) None

Commercial Paper d) Certificate of Deposit e) Shares

85. Which of the following scheme is not meant for

and Bonds

investment purposes?

79. Which of the following is necessary while

a) National saving certificate b) Infrastructure bonds

opening deposit accounts in banks?

c) Mutual funds d) Letter of credit e) None of these

a) Will b) Registration c) Nomination d) Indemnity e)

86. Basel norms which are important regulatory

Guarantee

stipulations are meant for which sector?

80. Which of the following is not a banking term?

a) Insurance b) Banking c) Micro finance d) Pension

a). Letter of credit b). MIBOR c). Factoring services

funds e) None

d). Entry load e). None of these.

87. Systematic investment Plans relates to:

81. Which of the following organizations issue the

a) Mutual Funds b) Life Insurance Companies c)

rules of global trade?

Commercial Banks d) Post office savings schemes e)

a) IMF b) World Trade Organization c) Foreign trade

None

d) G-20 e) None

88. Euro money is the official currency of ___?

82. One single statement that depicts the financial

a) NATO b) United Nations c) European Union d)

position of a Bank and / or Business enterprise at a

Germany and England e) None of these

given point of time is called:

89. Which of the following is an example of cash

a) Statement of product details b) Foreign exchange

less purchase?

c) Balance Sheet d) Balance of payment

a) Debit card b) Credit card c) ATM withdrawal d) All

e) Trading and Manufacturing account

of the above e) None

83. The Reverse Mortgage Scheme is launched to

90. Whose signature appears on Indian Rs. 100

give benefit to which of the following groups of

note?

society?

a) Finance Minister b) RBI Governor c) Finance

a) Persons below 60 yrs b) Senior Citizens c)

Secretary d) Chairman, Planning Commission e)

Unemployed youth d) Orphans e) All the above

None

91. While discussing investments there is a mention

All of these e) None

of short term government security. What is this

98. Electronic Clearing Service in banks can be

investment?

availed only by:

a) Debenture b) Mutual funds c) Treasury bill d)

a) Individuals b) Corporates c) Senior Citizens d) All

Share e) None of these

of these e) None

92. NBFCs are an important part of the Indian

99. Which of the following are the essential

financial system. what is meant by this term?

characteristics of Money?

a) New Banking Financial Companies b) Non Banking

a) Durability b) Portability c) Divisibility d) All A,B &

Financial Companies

C e) None of the above

c) Neo Banking Financial Confederation d) Non

100. The Imperial Bank of India was renamed as ?

banking Fiscal Companies e) None of these

a) Reserve Bank of India b) State Bank of India c)

93. Banking loan against property requires the asset

Union BanK of India d) IDBI e) None

to be free from encumbrances. What does it mean?

101. Plastic money Exchanged electronically

a) The asset to be free from any liability b) The asset

Includes:

to be properly registered

A. Debit Cards B. Credit Cards C. ATM Cards D.

c) The property to be fully constructed d) The asset

Smart Cards E. All the above

should not have multiple owners e) None

102. Some of the institutions covered under all

94. RBI stipulates a healthy mix of CASA in the

India DFIs are:

business figures of banks. What is CASA?

A. Industrial Finance Corporation of India (IFCI) B.

a) Customer Analysis and Savings Pattern b) Cost

IDBI

Appreciation and selling Analysis

C. Industrial Credit and Investment Corporation of

c) Current Account and saving Account d) Credit and

India (ICICI)

savings Aggregate e) None of these

D. Industrial Investment Bank of India (IIBI) E. All the

95. Which one of the following is not an electronic

above

banking delivery channel?

103. OLTAS stands for

a) Mobile Vans b) Mobile Phone Banking c) Internet

A. Online Tax Assessment System B. Online Tata

Banking d) Tele Banking e) ATM

Administrative Services

96. The Rate at which the domestic currency can be

C. Online Tax Analysis System D. Online Tax

converted into foreign currency and vice-versa is

Accounting System E. None of the above

known as the ____

104. Updated technology enables the banks to

a) Exchange rate b) MIBOR c) Inter bank Call money

provide efficient products and services.

rate d) Base rate e) LIBOR

Some of the products and services are:

97. Now-a-days Banks are selling third party

A. ATM Cards B. Credit Cards C. Smart Cards D.

products. Example of third party product is:

Internet Banking E. All the above

a) Mutual funds b) Term deposits c) Credit cards d)

105. ___________has been set up for exchange of

B. Society for Worldwide Indian Financial C. Social

credit information among its members:

net(Working) for International Funds Transfer

A. DICGC B. ECGC C. CIBIL D. EXIM BANK E. RBI

D. Only C E. None of the above

106. BCSBI stands for:

112. RBI is popularly known as a lender:

A. Basel Committee for State Bank of India B. Banker

A. To Central Government B. To State Government C.

Customer Stability Board of India

Of Foreign Currency

C. Banking Codes and Standards Board of India D.

D. Of the last resort E. None of the above

Banking Codes and State Bank of India E. None of

113. Name the scheme in Mutual Funds which is

the above

askin to recurring deposits?

107. IDRBT is a Banking Research Institute,

A. Systematic Invetment Plan B. Unit Linked

established in 1996 by:

Insurance Policy C. Open Ended scheme D. All the

A. Reserve Bankj of India B. Government of India C.

above E. None

Department of Information & Technology D. ICRISAT

114. Name the payment system where payment

E. None of the above

instructions are processed on a

108. Teaser Rate of Interest means:

continuous basis:

A. A teaser rate means, a low introductory interest

A. Protocol Conversion Device B. RTGS C. ECS D.

rate on an Adjustable Rate Mortgage

ATM E. None of the above

(ARM), generally in home loans B. Charging high

115. The benefits of leveraging technology to the

rate of interest

customer are:

C. Charging high rate of interest

for HNIs

A. Easier access B. Quicker services C. Convenience

D. Rate of interest charged to college staff members

of banking D. Global access E. All the above

E. None of the above

116. Which of the following organizations /agencies

109. Urban Cooeprative banks are controlled by

works solely to monitor and arrange

___________ and _______________

flow of agriculture credit in India?

A. State Government and RBI B. State Government

A. NABARD B. RBI C. SIDBI D. SEBI E. None of the

and NABARD

above

C. Both State Government and Central Government

117. IFSC code represents:

D. RBI and NABARD. E. None of the above

A. Indian Financial Systematic Code B. Indian Forex

110. __________regulates all aspects of Insurance

Service Council C. Indian Financial System Code

Business

D. Integrated Financial Services Code F. None of the

A. RBI B. IRDA C. AMFI D. SEBI E. All the above

above

111. SWIFT stands for

118. When banks accept a fixed sum of money from

A. Society for Worldwide Interbank Financial

an individual for a definite term and

Telecommunication

pay on maturity with interest, the deposit is known

as :

A. Term Deposit B. Demand Draft C. Bond D.

A. Identity Proof B. Address Proof C. Customer

Mortgage E. None of the above

Profile D. Vehicle details of the customer E. None

119. Banking Ombudsman is appointed by:

126. AML Stands for

A. Reserve Bank of India

A. Anti Monitory Limit B. Anti Money Laundering C.

B. Government of India

C. Concerned State Govt, where RBI office is located

Always money laundering

D. Finance Minister E. None of the above

D. Anytime Money Laundering E. None of the above

120. Before approaching Ombudsman what should

127. KYC Know Your Customer is to identify the

the complainant do?

Customer, whereas AML- Anti Money

A. Take up the matter with State Government

Laundering is to identify the Source of Income:

B. Take up the matter with concerned Bank Branch

A. False B. True C. True only in case of small amounts

within 30 days of cause of action

D. Not necessary in all cases E. Any of the above

C. Approach Lok Adalat D. Can directly approach

128. If a Depositor is not a Senior Citizen and his

Banking Ombudsman E. Any of the above

Taxable Income is within the exempted

121. What is the maximum period within which the

limits then he has to submit ---------------- to the

aggrieved customer can approach

Bank for not deducting tax at source

OMBUSAMAN?

A. Form 15G B. Form 15 H C. Form 61 D. Form 60

A. Within 2 year B. Within 1 year C. Within one

E. None of the above

month D. No such limitation period E. None of the

129. In case the prospective customer whose

above

income comes from only Agriculture sources

122. What is the maximum amount for which the

then he has to give a declaration in Form 61.

Award Can be given by OMBUDSMAN

A. True B. False C. He has to submit form 60 D. No

A. Rs 1,00,000 B. Rs 2,00,000 C. Rs 5,00,000 D. Rs

such requirement E. None of the above

10,00,000 E. No limit

130. Nomination is available for

123. Who will be appointed as Banking

A. Deposit accounts B. Safe custody articles C.

Ombudsman?

Lockers. D. Partnership firms E. Only A B C

A. CGM or GM of RBI

B. Deputy Governor of RBI

131. Nomination can be given only for:

C. Governor RBI I is an ex-officio Ombudsman

A. Individuals B. Joint Individuals C. Limited

D. Finance Secretary E. None of the above

Companies D. Only A, and B E. None of the above

124. KYC norms are liberalized in case of following

132. Money deposited at a bank that cannot be

accounts:

withdrawn for at fixed period of time is known

A. Current Account B. Savings Account C. Term

as a _____:

Deposit Account D. No Frills Account E. None

A. Term deposit B. Checking Account C. Saving

125. The KYC does not include obtaining the

Bank deposit D. No Frills Accounts E. Current

following :

deposit

133. With reference to a cheque which of the

139. Negotiable Instruments Act extends to

following is the drawee bank?

a. Whole of India b. Whole of India except in J & K

A. The bank that collects cheque. B. The payees

c. Only in States/UTs d) None

bank. C. The endorsees bank. D. The bank of the

140. Identify the Promissory Note from the

Drawer of the Cheque E. None of the above

following:

134. Base Rate is the rate below which no Bank can

a. I promise to pay B or Order Rs.500

allow their lending to anyone.

b. I acknowledge myself to be indebted to B in

Who will fix this Base Rate for Banks?

Rs.1000/- to be paid on demand for value received

A. Individuals Banks Board B. Ministry of Commerce

c. I promise to pay B Rs.500/-, and all other sum

C Ministry of Finance d) RBI

which shall be due to him d. a & b

e) Interest Rate Commission of India

141. Which among the following are the

135. Expand NPA

requirements of a Promissory Note?

A. No Provision Account B. Non Performing Asset

a. It must contain an unconditional promise to pay a

(An asset which ceases to generate income)

certain sum of money

C. No Profit Account D. Non-Personal Accounts E.

b. It must contain a conditional order to pay a

None of the above

certain sum of money

136. Finance Ministry advised RBI to allow common

c. It must be payable to the order of specified person

ATMs to be owned and managed by Non

or bearer

Banking Institutions. Such ATMs are called:

142. I Mrs. A, daughter of Mr. X executed and

A. NBFC ATMs B. Off Site ATMs C. Third Party ATMs

promise that a sum of Rs.15000/- has been

D. White Label ATMs E. None of the above

obtained by me from Mr. B in cash and I agree to

137. An ECS transaction gets bounced and you are

pay thereof that in future on demand the principal

unable to recover your money from your

will paid in one lump sum and this pronote will be

customer. Under which Act criminal action can be

taken by me

initiated?

a. The above statement is a promissory note

A. Indian Penal Code B. Negotiable Instrument Act C.

b. The above statement can never be considered as

Criminal Procedure Code

promissory note

D. Payment and Settlement Act

E. Indian Contract

d. a & c

c. The statement can become a Promissory Note

Act

only after alterations d. None of the above.

138. What is CTS

143. An Usance promissory note has to be

A. Cash Transaction system (in banks) B. Cheque

presented for acceptance by the maker

Transfer System C. Cheque Truncation System

a. It is true

D. Cash Transfer System E. None of the above

always on demand

b. It is false

c. Promissory Note is

d. none

144. Demand promissory note attract stamp duty

153. The word after sight in Bills of Exchange means

only on the amount where as Usance promissory

a. After acceptance b. after payment c. either a or

note attract stamp duty based on the amount and

b d. None

the period [tenor]

154. The liability of Drawee in an Usance bill of

a. True

b. False

c. Partially true

d.

exchange starts

All of these.

a. When bill is drawn b. when the bill is accepted by

145. Stamp duty on Promissory Note is:

him c. Liability is always of drawer d. None

a. Same throughout India b. Varies from state to

155. An Usance bill must be presented to the

state

Drawee:

c. both are correct d. none

146. Promissory Note payable to bearer:

a. At his place of business during his business hours

a. Can be drawn by anybody b. Cannot be drawn

for his acceptance

by everybody

b. At his place of business even after his business

c. It all depends on advocates

d. None of these.

hours for his acceptance

147. Bill of Exchange is defined in Section .of

c. At any place even after his business hours of the

Negotiable Instruments Act

bank

a. 4

b. 5

c. 6

d. None

d. At the banks premises during business hours of

148. Bank Notes and Currency Notes are

the bank

a. Promissory Notes

156. The bill must be presented to the Drawee for

b. Not Promissory

Notes c. Semi Promissory Notes d. None

acceptance / payment within:

49. Bills of Exchange should always contain:

a. 24 hours of receipt of the bill

a. A conditional order to pay a certain sum of

of receipt of the bill

money

c. Any time after receipt of the bill

b. Both a & b

b. 48 hours

d. None of

c. Unconditional order to pay a certain sum of

these

money d. None of these

157. What is the time allowed to the Drawee for

150. A Bills of Exchange in vernacular language is

accepting the bill?

called as

a. 24 hours exclusive of public holidays b. 48 hours

a. Hundi b. It cannot be drawn like this c.

exclusive of public holidays

Vachancccpatra d. none

c. either a or b

151. Acceptance is necessary in case of:

158. When rate of interest is not specified in

a. Demand Bill b. Usance Bill c. Both a or b d.

Instrument, interest on the amount due is payable

None of these

at:

152. At sight Bills of Exchange are also called as

a. 18% p.a. b. 6% p.a. c. At the discretion of

a. Demand Bills b. Usance Bill c. Both a and b d.

Drawee d. None of these

None of these

d. none of these

159. Functions of Reserve Bank are:

166. The first nationalization of banks exercise was

a) Bankers bank b) Banker to Government c) Lender

done on:

of last resort

a) 19.07.1969 b) 19.07.1970 c) 19.07.1967 d)

d) Controlling financial requirements of banks

15.08.1967 e) None of the above

through Repo/Reverse Repo e) All the above

167. How many banks were nationalized In the

160. How many Deputy Governors will be there in

second phase in 1980:

RBI:

a) 5 b) 6 c) 7 d) 4 e) 1

a) 3 b) 5 c) 7 d) 4

e) No Deputy Governor will be

168. The Basic criteria that was considered while

appointed

nationalization of banks in 1969 was The liability

161. Reverse Repo Rate has the following

base of banks is more than:

characteristic:

a) 30 crores or more b) 40 crores or more c) 50

a) Borrowing by RBI from banks b) Borrowing with

crores or more

government security as collateral

d) 60 crores or more e) None of the above

c) Short Term Borrowing d) All the above e) None of

169. Which of the following deposits do not attract

the above

TDS?

162. Indian commercial banks are categorised into:

a) Fixed Deposits b) Deposit Reinvestment Deposits

a) Public Sector banks b) Foreign Banks c) Private

c) Flexi Deposits d) Call Deposits

Sector Banks d) All the above e) None

e) Recurring Deposits

163. Regional Rural Banks have been set up with

170. At present the rate of interest paid by RBI to

the basic objective of:

Commercial Banks on CRR is :

a) Providing credit to semi-urban and urban

a) 3% b) 4% c) 5% d) No interest e) Only for above

population b) Providing deposits facilities to farmers

Rs. 1000 crore CRR balance.

c) Providing credit and deposit facilities to rural

171. The Cash Reserve Ratio is to be maintained by

areas

Commercial Banks in the form of:

d) Providing credit, deposit and other banking

a)Cash in hand at branches b) Balance with other

facilities to people in rural areas

banks

e) None of the above

c)Balance in a special account with RBI d) Funds in

164. The following is a mechanism for injecting

the currency chest e) Any of the above options.

liquidity by RBI to the financial system:

172. Increasing Cash Reserve Ratio from time to

a) Reverse Repo b) Hike in CRR c) Hike in interest

time by Reserve Bank of India leads to:

rate d) Repo e) None of the above

a) Decrease in deposit b) Increasing in deposit

165. ____________ are Local Institutions

b) Increase in lendable resources d) Decrease in

functioning like Banks

lendable resources. c) Any of the above

a) Local Area Banks b) Indigenous Banks c) Private

Banks d) Financial Institutions

173. The interest on Marginal Standing Facility

180. Which of the following cannot be included in

sanctioned by RBI to banks is:

the money market:

a) Repo rate plus 1% b) Repo Rate plus 2% c) Repo

a. call or notice money b. corporate securities c.

Rate plus 3%

certificate of deposit d. treasury bills

d) One percent less than reverse repo rate e) None

181. Which of the following is a part of the money

of the above

market?

174. Who was the first governor of RBI?

A. Bonds issued by the govt. B. bonds issued by

a) Osborne Smith b) James Taylor c) C.Desh Mukh

public undertaking

d) B.R.Rao e) None of the above

C. term money D. Debentures

175. RBI was established in 1935 pursuant to

182. The central bank authority i.e. in India, is

recommendation of:

performing two distinct roles in the context of

a) The Hilton Young Commission b) All India Rural

money market that includes:

Credit Survey Committee

A. monetary control and banking supervision B.

c) Gorawala Committee d) Talwar Committee e)

issue of currency and maintaining of CRR

None of the above

C. handing govt. business and maintaining price

176. One rupee note and all coins will be issued by:

stability D. banking supervision and financial

a) Reserve Bank of India b) Central Government c)

stability

Central and State Governments collectively

183. Money control is exercised by RBI in India

d) None of the above e) All the above

through

177. Who will sign One Rupee Note?

A. payment system B. issue of currency C. cash

a) Governor- RBI b) Governors of concerned state

reserves and liquid reserve ratios

governments

D. Repo rate and reserve repo rate

c) Secretary, Ministry of Finance d) Finance

184. The base rate for lending of banks are

Minister e) None of the above

impacted by RBI by changing:

178. What is MSF?

A. CRR B. SLR C. Repo rates and bank rate D.

a) Marginal Standing Facility b) Micro and Small

guidelines u/s 35A of B R Act

Finance c) Medium Size finance

185. Which of the following functions is not coming

d) Mid Term Sanction facility e) None of the above

under functions of central banking authority In

179. Which of the following cannot be included in

India:

the definition of a financial intermediary?

A. supervision over NBFC B. supervision over the

A. Banks and non-bank finance company B. financial

foreign institution invest

institutions

C. management of financial systems D. regulating

C. mutual fund D. companies engaged in

the money market

manufacturing of goods

186. Which of the following is not the function of

D. management of govt. debt

capital market regulatory authority i.e. SEBI, in

193. The clearing house facilities for payment and

India:

delivery of securities is provided

A. regulating of debt market B. control over the

A.SEBI B. stock exchange C. clearing corporation of

equity market

India D. all the above

C. framing the rules for pension funds D.

194. The funds based outside India and authorized

supervision over listed companies.

by SEBI to invest in Indian equity market through

187. Supervision over the depositors and stock

the stock exchange are called:

exchanges is the role of:

A. foreign institution investors B. overseas

A. RBI B. IRDA C. SEBI D. PFRDA

corporate bodies

188. Which of the following does not match:

C. non-resident funds D. foreigner investment funds

A. regulator of insurance market----IRDA B.

195. The corporate securities are held in electronic

regulator of capital market ---SEBI

from instead of physical

C. regulator of money market ---RBI D. regulator of

A. Registrars B. custodians C. depositors

forex market---SEBI

mutual funds

189. Which of the following functions is not carried

196. Which of the following is the role of mutual

by IRDA in India ?

funds?

A. regulator of insurance companies B. regulating

A. to promote unit based scheme to inculcate saving

the insurance products

habit

C. regulation over the funds managing pension D.

B. pooling of investor money for investment in

supervision of the general insurance market

capital market and other securities

190. The small companies/ organizations that have

C. manage the funds of high net worth individuals

been created exclusively to deal in govt. securities

d. all the above

are called:

197. Which of the following is not a correct

A. NBFCs B. mutual funds C. primary dealers D.

statement?

asset management companies

A. RBI exercises monetary control through CRR and

191. Which of the following have been created to

SLR

provide long term funds for industry or agriculture:

B. clearing house at various centers are maintained

A. mutual funds B. financial institutions C. asset

by SBI C.IRDA is the regulator of insurance market

management companies

D. Rising of money through issue of shares by a

D. non-banking finance companies.

company is part of capital market.

192. Which of the following functions is not carried

198. Urban cooperative banks are controlled by:

out by RBI :

A. NABARD B. Central govt. and NABARD C. state

A. bankers to govt. B. raising deposits from public

GOVT. and RBI D. RBI and NABARD

C. lender of last resort to banks

D.

199. What does the letter 'L' stands for in the term
LAF commonly used in financial/economic news?
a) Liquidity b) Least c) Liabilities d) Long e) Liquid
200. Which of the following is not a primary function
of a Bank?
a) Granting loans b) Collecting cheques/ drafts of
Customers
c) Arranging VISA for students for abroad
education d) Issuing bank drafts
e) Selling Gold/Silver Coins.
Note: CTS mean Cheque Truncation System
wherein instead of sending cheques physically
to clearing house, only scanned images will be sent.
It is also called image based
clearing. This system already started in many states
of India. This reduces the collection
of cheques time considerably and is advantageous
to the customers.

ECS used for Electronic Clearing of cheques

Debit ECS for Collection of loan installments
and
Credit ECS for payments like Dividends,

Salaries etc.

Demand and Time Liabilities (DTL)

Other Demand and Time Liabilities (ODTL)