BANKING MANAGEMENT Online Examination

1.

Classification of Banks on the basis of domicile a) Domestic Banks b) Foreign Banks c)national

d)commercial

( a)

2. Banks are classified as Public, Private and Co-operative on the basis of ownership a) b) ownership c) d) 3. The institution which deals with Money & Credit a) Development institution b) charitable trust c) Bank d)chit fund agency

(b)

(c )

4. A bank included in 2nd schedule of RBI Act,1934 & fulfill necessary conditions

a) Scheduled Banks

b)non scheduled

c)public sector d)foreign bank

(a)

5. A bank not included in 2nd schedule of RBI Act,1934 & fulfill necessary conditions a) Non-Scheduled Banks b) foreign bank c)mutual fund d) Scheduled Banks

(a)

6. Activities of sale of industrial securities i.e. their origination, underwriting & and also corporate advisory for loan syndication etc., are provided by a) commercial Bank b) Merchant Bank c)lending bank d)syndicate bank (b) 7. Branch banking was initially developed in a)America b) England c)Russia d)Japan 8. A big bank as a single institution & under single ownership operate through a network of branches spread all over the security is called as a) Branch Banking b) unit bank c)group bank d)merchant bank (a)

(b)

9. Indigenous banks form part of __________ of money market a) organized Sector b) Un-organized Sector c)commercial bank d)Exchange bank 10. Scheduled and non-scheduled banks for part of _________ of Money Market a) Organized Sector b) Un-organized Sector c) commercial bank d)Exchange bank 11. Nationalization of SBI took place on

(b)

(a)

a)1947

b)1964

c)1969

d) 1955

(d)

12. ATM Means a)Automatic Teller Machine b) Automatic Telling Machine c) Automated Teller Machine d)Automated telling machine (c)

13. The requirement of maintaining minimum cash reserves with RBI is called a) CRR b)SLR c)IRR d)ARR 14. _________ associated with electronic delivery of service s a) Virtual banking b) unit banking c)group banking d)branch banking 15. The post paid card holder can spend wherever, whenever within the limits fixed a) Credit Card b)debit card c)ATM card d)IT card

(a)

(a)

(a)

16. It is prepaid card with some started value, if used by the holder, bank debits his account a) b) c) d) Debit Card 17. RBI was established on ______ under RBI Act 1934 a)April 1925 b) April 1935 c) April 1945 d)April 1965 (b)

(d)

18. RBI was nationalized on a)Jan 1st 1945 b) Jan 1st 1959 c)Jan 1st 1949 d) Jan 1st 1947 (c)

19. ________ acts as bankers bank & controller of credit a) SEBI b) RBI c)IFCI (d)IMF

( b)

20. Under section 24 of Banking regulation act, 1949, all commercial banks have to maintain liquid assets in the form of cash, gold & unencumbered approved securities qua lot not less than 25% of their total demand & time deposit liabilities which is known as a)CRR b)SLR c) GDR d)SDR (b)

21. Buying & Selling of securities by RBI is called a)bank rate b) Prime lending rate c)REPO rate Operations 22. NABARD is for financing a)Industry b) Rural development c) d)small scale industry development

d) Open Market (d)

Agriculture & Rural development

( c)

23. One of the following is not a development bank a) IFCI b) SFCs c)SIDBI 24. SBI has a) 7

d)YES

(d)

b) 5

c)

d)10

(a)

25. Nidhis &Chit funds comes under_____________ of money market a)organized sector b) Un-organized sector c)indigenous banks dpublic sector 26. The rate at which the RBI advances to the member banks against approved securities or rediscount the eligible bills of exchange and other papers a)prime lending b)Repo c) Banks State d)Reverse repo (c) 27. Phase of Nationalization a)1800 to 1950 b) 1700to 1855 c) 1650 to 1780 d) 1969 to 1991 (d)

(b)

28. Phase I of Indian Banking is from a)1786 to 1969 b) 1650 to 1780 c)1700to 1855 d)1800 to 1950

(a)

29. LIC was established __________ as a wholly owned corporation of the Govt. of India a)1991 b) 1956 c)1948 d)1955 (b)

a) GIC was formed in the year a)1972 b) 1956 c)

1972

d)

1980

(a)

b) Regional Rural banks comes under a)public sector b) Commercial Banks c)foreignbanks d)merchant bank

(b)

a) ________ bank proved the required support and assistance to set up a business for exporting products abroad or importing products form foreign countries for sale in our country. a)DENA bank b)NABARD c)EXIM Bank d)Merchant bank (c) b) The system of banking under which a bank place its fund in risk-free assets with maturity period matching its liability maturity profile. So that there is no problem relating to AL match & the quality of assets remains intact without leading to the emergence of substandard assets. a)Narrow Banking b) group banking c)shallow banking d)unit banking (a)

31)The act of overdrawing from a bank account is a)under draft b)demand draft c)Overdraft d)Cheque (c)

32)Term loans are loans which are granted for a tenure of a) less than 1 year b) More than a year c)equal to 1 year d)none (b)

33)A contractual arrangement/transaction in which a party owing an assets, equipment provides the asset for use to another party(transfer the right to use the equipment to the user over a certain/for an agreed period of time for consideration in the form of/in return for periodic payment/rental with or without a further payment (premium)). a)Lease b) hire purchase c)Buyback d) venturing (a)

34)Till the 1950s the foreign banks were called a) Development banks b) Exchange Banks c)narrow bank d)merchant bank (b)

35)The ability to produce cash on demand, and the banker must be able to meet these liabilities whenever they are demanded a)Evaluation b) diversification c)portofolio selection d) Safety (d)

36)Do not keep all the Eggs in one Basket. The statement is related to b) Risk bearing b) Diversification of Risk c)speculation d)trading (b)

37) Deposits, Borrowing from other banks & Capital form part of _______________ of bank

a)Funds b)

assets

c)Liabilities/Sources

d)Long term capital

(c)

38)Loans, Securities, Reserves for part of _________ of Bank a) Debt b) Liabilities/Sources c)securities d) Assets or Uses

(d)

39)The categories of assets (advances, Bills discounted, Overdraft, cash credits etc.,) which ease to generate income for the bank. a)NCAs b) NPAs c) Assets d)sources (b)

40)A set or group or combination of securities hold by an investor a) Scrips b)group c)bunch d) Portfolio (d)

41)________ lend from deposits received form general public a)Banks(Org. Sector) b) In organized Sector c)money lenders d)none (a)

42)The deposits where customer expect to be able to withdraw money at anytime a)recurring deposit b)time deposit c)customer deposits d) Demand Deposits (d)

43)Any Deposit which is not repayable on demand is (b) a)recurring deposit b)A Time Deposit c) Demand Deposits d) customer deposits

44)The first industrial development bank set up by the Govt. of India in July 1948 was a) SFC b) IDBI c)ICICI d) IFCI (d)

45)FCI offers financial assistance to large& medium seized industrial units in a)Private, Public & Cooperatives b) joint sector c) cooperative sector d)small sector

(a)

46)NSE, OTCEI, SHCIL & STCI are promoted by a) IFCI b)IDBI c)ICICI d)UTI (a)

47)IDBI was established in the year a)june 1964 b) july 1967 c)july 1966 d) July 1964 (d)

48)________ was formed as fully owned subsidiary of RBI on July 1964 a)ICICI b) IFCI c)IDBI d)SFC (c)

49)ICICI was established on a)1965 b) 1955 c)1985 d) 1945 (b)

50)ICICI was formed as __________ sector development bank a)Private Sector b) joint c)public d)none (a)

51)ICICI full form a)Industrial Credit and Investment Corporation of India b) Investment Credit and Industrial Corporation of India c)Industrial Credit and Inventory Corporation of India d) Industrial Credit and Insurance Corporation of India

(a)

52)SIDBI was established as a wholly named subsidiary of a)SEBI b)RBI c)IDBI d)SFC (c)

53)SIDBI was established under the small industries development of India Act a)1059 b) 1979 c)1969 d)1989 (d)

54)SFCs are set up under a)SEBI act, 1954 b) RBI act,1932 c)SFC act, 1951 d)SFC act ,1943 (c)

b) The development institution which meet the credit needs of Medium & Small Scale Industries located in backward areas in different states in the country is a)SFC b) IFCI c)IDBI d)SIDBI (a) 55)______ deal is a contract to buy securities and then to sell them back at a particular price and date a)leasing b) REPO c)Reverse repo d)lending (b)

56)________ involves a contract to sell securities and then to repurchase it at a stated future date for a slightly higher price a)Reverse REPO b) REPO c)buying d)purchase deal (a)

57)A_____________ shows that a deposit in made with a bank for a fixed period of time and it will be repaid with interest at the end of the maturity period a)Time depositb) demand deposit c)Certificate of Deposit d)none (c)

58)when an institution accepts a deposit, it is said to a) Hold a CD b) buy a CD c) Repurchase CD d)Issue a CD

(d)

59)When an institution makes a deposit or buys a certificate is the secondary market, it is said to a)Hold a CD b) Repurchase CD c)buy a CD d) none (a) 60)A number of banks join together & form a syndicate to save a large corporate customers this is called a) Acquisition b) merger c)Loan Syndication d) joint venture (c)

61)________ means the accepting for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise a)Banking b) lending c)donating d)charity (a)

62)The agency responsible for impartially investigating complaints from customers against public authority, institution or a company a) Banking b) Ombudsman c)regulatory agency d)investigating agency (b)

63)The securities which are created with the help of finance made available by the bank are a)Primary Securities b) global Securities c) bridge Securities d) none (a)

64)The form of impersonal security, such as Land, Buildings & Machinery comes under a)Primary Securities b) Tangible Securities c)bridge Securities d)none (b)

64)_______ Securities are intangible securities a)bridgeb) impersonal c)Personal d)global (c)

65)Promissory Notes, Bills of Exchange come under_______ Securities a)Personal b) tangible c)mortagage d)collateral (a)

66)Government Securities are example for_________ securities a)Personal b) collateral c)liquid d) mortagage (c)

67)_________ loans are essentially short term loans that are granted pending disbursement of sanctioned term loans a)Composite Loan b) Bridge Loans c)Consumption Loans d) none (b)

68)Education, Automobile loans come under a)Consumption Loans b) Composite Loan c)bridge loans d) none (a)

69)If a loans is taken for buying capital assets as wells as for meeting working capital requirements, it is called a)bridge loan b) Consumption Loans c)Composite Loan d) none (c)

70)In july 1955, Govt. of India nationalized the ___________ to create SBI a)Imperial bank of India b) SBI c) IDBI d)Punjab national bank (a)

71)According to Sec.24 of Banking Reg. Act 1949, every banking company in India is required to maintain cash, gold & unencumbered approved securities equivalent to an amount which is not less than 25% of its time & demand liabilities at the close of business on any day which is called a) ARR b) SLR c)CRR d) IRR (b)

72)Narasimham Committee recommended setting of _________ to take over from the Nationalized banks and financial institutions, a portion of their bad and doubtful debts at the discount. a)Asset Reconstruction Fund (ARF) b) Risk fund c) d) (a)

73)_________ gave recommendations on weak banks a) narasimham committee b) vaghul group c)Varma Panel d)daheja committee

(c)

c) _________ gave recommendations on Corporate Governance a) narasimham committee b) vaghul group c)Varma Panel d) daheja committee (c)

74)Capital to risk weighted assets ratio was fixed ___% as part of Capital adequacy norms as suggested by Narasimham Committee a)8% b) 5% c) 9% d) 4 % (a)

75)As per recommendations of the Narasimham Committee 1991, SLR should be reduced from 38.5% of the net demand & time liabilities of banks to ______% over the next 5 years. a) 15 b) 24 c)20 d)25% (d)

76)CRR Should also be reduced from _______% to 3 to 5% a) 12 b) 25 c)15% d) 29 (c)

77)Quality of Control should be removed. This is one of the recommendations of ______

a) varma panel b) c)Narasimham Committee

vaghul group d)daheja committee

(c)

78)_________ was setup in 1972 to improvise & regularize the working of indigenous bankers in India a)lending commission b)Banking Commission c)regulatory commission d) none

(b)

79)________ is a selective credit control measure used by RBI, through which it sends letters to the commercial banks to use restrain over their credit policies in general & in respect to certain commodities & unsecured loans in particular a)Fiscal policy b) bank rate c)Moral suasion 80)All banks are regulated by a)RBI b)SEBI c)NSDL d)IDBI d)monetary policy (a) (c)

80)ADR stands for a)Americal Depository receipts b)Asian Depository receipts c)African Depository receipts d)none 81)Full form of NPA a)Non Performing Assets b)New performance Agents c)Non Progressive assets d)Non Promoted assets 82)Modern banking system is known as

(a)

(a)

(d)

a)Reserve banking b)net banking c)basis and process banking d)fractional reserve banking

83)How much % of deposits a bank holds as cash reserves a)10 b)9.5 c)9.7 d)10.5

(a)

84)Slack season with respect to commercial banks is the period between a)Jan-March b)Mar-Oct c)Oct-Mar d)Apr-sep 85)How many public sector banks are there in India? a)28 b)26 c)27 d)29 (c)

(d)

86)Acquiring minimum 51% of paid-up capital of a private bank by the state government or central government is called ________ a)globalization b)centralization c)nationalization d)none 87)In the year 1993, the government merged New Bank of India with___ a)IDBI b)UCO bank c)Indian bank d)Punjab national bank (d) (d)

88)Enactment of banking regulation act a)1955 b)1962 c)1948 d)1949 89)_______ is also called the real bills doctrine a)commercial loan theory b)shiftability theory c)the anticipated income theory d)none

(a)

90)The success of ALM depends on the effective existence of

( a)

a)information and policies b)risk management c)both d)none 91)In the year 1980 how many banks were nationalized a)19 b)14 c)07 d)6 92)_______ banking is of international business in which banks and management of groups of many countries participate. (b) a)branch b)offshore c)unit d)group 93)Lending for agriculture and allied activities comes under a)company lending b)farm lending c)small lending d)priority sector lending 94)Nationalized banks and regional rural banks comes under a)public sector b)private sector c)joint sector d)agri sector 95)Largest public sector bank in India (b) (a) (d) (d)

a)Indian bank b)SBI c)Canara bank d)Andhra bank 96)The banking system which combines deposit banking with investment banking is known as a)unit banking b)mixed banking c)virtual banking d)branch banking 97)_______ banking is concerned with providing long term finance to meet the fixed capital requirements of industries. ( a) a)industrial b)group c)E-banking d)branc 98)________ acts as the controller of credit, custodian of Exchange Reserve a)IRCI b)IDBI c) RBI d)BIFR 99)State bank of India and its 7 subsidiaries comes under a)public sector b)joint sector c)private sector d)priority sector ( a) ( c) (b)

100)__________ is a method of charging which can be created only in respect of immovable properties like land and building (b) a)pledge b)mortgage c)lien d)none