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PRESENTS

1. In terms of Section 31 of the Reserve Bank of India Act, 1934 a demand draft payable to bearer may be issued only by _______? (a) Nationalized Banks (b) Scheduled Commercial Banks (c) Reserve Bank of India (d) Foreign Banks (e) None of the above

2. In case of original demand draft is presented after the duplicate has already been paid, the bank will _______? (a) Pay the original demand draft (b) Pay the original demand draft as well and recover the amount from the purchaser on the strength of the indemnity bond (c) Return with remarks “Draft reported lost, duplicate already paid will pay on collecting bank’s guarantee. In case the original draft is again presented, it should be honoured.” (d) Return with the remarks payment stopped by the payee (e) None of the above

3. Collateral securities can be _______? (a) Tangible (b) Intangible in the shape of personal guarantee of a third party (c) None of the above (d) Both of the above

4. The Central Bank in India is ______? (a) The Reserve Bank of India (b) The State Bank of India (c) The Andhra Bank (d) Central Bank of India (e) None of the above

5. Stock exchange securities do not include? (a) Debentures certificate (b) Small debentures issued by port trusts (c) Government promissory notes

(d) Participation certificates (e) None of the above

6. The Definition of ‘Banking’ is given in (a) Negotiable Instrument Act, 1881 (b) RBI Act, 1934 (c) The Banking Regulation Act, 1949 (d) Contract Act (e) None of the above

7. When was SBI established? (a) April 1, 1935 (b) July 31, 1969 (c) May 5, 1955 (d) July 1, 1955

8. Presently, the number of the public sector banks in

India is (a) 8 (b) 20 (c) 27 (d) 14 (e) None of the above

9. Which of the following banks are not commercial banks? (a) Foreign Banks (b) State Co-operative Banks (c) Private Banks (d) Regional Rural Banks (e) None of the Above

10. Regional rural banks are managed by ______? (a) The Central Government (b) The RBI (c) The Board of Directors (d) The State Government (e) None of the above

11. Appellate Tribunal for recovery of debts due to banks and financial institutions is set up at _____? (a) Chennai (b) Bangalore (c) Mumbai (d) Kolkata (e) None of the above

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12. Many a times we read about Special Drawing

Rights (SDR) in newspapers. As per its definition, SDR is a monitory unit of reserve asset of which the following organization/agency? (a) World Bank (b) International Monitory Fund (IMF) (c) Asian Development Bank (ADB) (d) Reserve Bank of India (RBI) (e) None of the above

13. As per recent newspaper reports, RBI is considering the grant of license to some new companies, particularly NBFCs, to act as full-fledged Banks. Which of the following will be considered as NBFC? (a) NABARD (b) Life Insurance Corporation of India (c) Reliance Capital (d) SEBI (e) None of the above

14. Presently which Indian bank has the largest number of foreign branches? (a) SBI (b) Canara Bank (c) Bank of Baroda (d) Bank of India (e) None of the above

15. Under which of the following methods of note-issue the RBI issues notes? (a) Fixed Fiduciary System (b) Maximum Fiduciary System (c) Minimum Reserve System (d) Proportional Reserve System (e) None of the Above

16. Cash deposit ratio means ______? (a) The percentage of cash-in-hand-balance with the Central Bank to the aggregate deposits (b) The percentage of total deposits received by Banks

(c) The percentage of total cash money received as deposits by banks (d) All the above (e) None of the above

17. Lead Bank Scheme was introduced in ______? (a) 1965 (b) 1969 (c) 1981 (d) 1992 (e) None of the above

18. A rise in the reserve ratio of banks ______? (a) Will lead to an increase in the money supply (b) Will lead to a proportionate increase in the money supply (c) Will lead to a decrease in the money supply (d) Will have no impact on money supply (e) None of the above

19. In the case of FCNR accounts the payment of interest is effected in ______? (a) Indian Rupee (b) Only in Pound (£) (c) Same currency in which deposit stands (d) Yen (e) None of above

20. Banks are required to maintain SLR under ____? (a) Section 24 of the Banking Regulation Act (b) Section 49 of the Banking Regulation Act (c) Section 24 of RBI Act (d) None of the above

21. CRR is required to maintain in the form of _____? (a) Approved Government Securities (b) Cash with RBI (c) Cash with bank (d) All the above (e) None of the above

22. In which of the Acts, specimen of the cheque, bill, promissory note is given? (a) Negotiable Instruments Act (b) Banking Regulation Act (c) Mercantile Law (d) None of the above (e) All the above

23. Which of the following negotiable instruments can be crossed to the banks? (a) Cheques (b) Drafts (c) Bills of Exchange (d) All the above (e) None of the above

24. Which of the following can be issued payable to bearer? (a) Cheque (b) Draft (c) Bill of Exchange (d) Demand Promissory Notes (e) None of the above

25. Crossing denotes _____? (a) Cheque cannot be transferred by the payee. (b) A direction to the paying bank to pay the

Cheque through a bank. (c) Cheque will be paid through clearing only. (d) Not payable across the counter but will be

credited to the account of the holder. (e) None of the above





26. FCNR accounts can be opened and maintained as _____? (a) Current Accounts (b) Saving Banks Accounts (c) Term Deposit Accounts (d) Recurring Deposits (e) None of the above

27. Various banks in the country have installed machines which disburse money to general public. These machines are called ____? (a) Coin Dispensing machine (b) A T M (c) Debit card machine (d) Ledger machines (e) None of the above

28. A ‘Not-negotiable’ crossing is a _____? (a) General crossing (b) Special crossing (c) Restricted crossing (d) Non-transferable crossing (e) None of the above

29. Which of the following is the Statutory Liquidity ratio (SLR), at present? (a) 10% (b) 21.5% (c) 20% (d) 24% (e) 33%

30. RBI’s open market operation transactions are carried out with a view to regulate _____? (a) Liquidity in the economy (b) Prices of essential commodities (c) Inflation (d) Borrowing powers of the Bank (e) All of the above

31. Under Open market operations, one of the measures taken by the RBI in order to control credit expansion in the economy, does ____? (a) Sale and purchase of Govt. securities (b) Issuance of different type of Bond (c) Auction of Bond (d) To make available direct finance to Borrowers (e) None of the above

32. Bank rate means _____? (a) Rate of interest charged by commercial Banks from borrowers (b) Rate of interest at which commercial banks discounted bills of their borrowers (c) Rate of interest allowed by commercial Banks from on their depositors (d) Rate at which RBI purchases or re-discounts Bills of Exchange of commercial Banks (e) None of the above

33. What is an Indian Depository Receipt (IDR)? (a) A deposit account with a Public sector Bank (b) A deposit account with any of the Depositories in India

(c) An instrument in the form of Depository Receipt created by an Indian Depository against underlying equity shares of the issuing company (d) An instrument in the form of deposit receipt issued by an Indian Depository (E) None of the Above

34. Fiscal deficit means _____?

(a) Total income less Govt. borrowings (b) Total payments less total receipts (c) Total payments less capital receipts (d) Total expenditure less total receipts

excluding borrowings (e) None of the above

35. Interest on the savings bank accounts is compounded ____? (a) Monthly (b) Yearly (c) Quarterly (d) Half-yearly (e) All of the above

36. The Head of Reserve Bank of India is? (a) Chief Executive Officer (b) Managing Director (c) Chief Banking Officer (d) Dy. Governor (e) None of the above

37. Who supplies interest-charts for different maturities and for different rates of interest? (a) IBA (b) RBI (c) Government of India (d) IBRD (e) None of the above

38. Rates of Interest on deposits are determined by ____? (a) IBA (b) Ministry of Finance (c) The Bank Itself (d) Government of India (e) None of the above

39. Current account becomes dormant when there are no withdrawals for the last _____? (a) 3 months (b) 6 months (c) 24 months (d) 12 months (e) None of the above





40. Which of the following may be adjudged as insolvent? (a) Minor (b) Married woman (c) Firm (d) Lunatic (e) None of the above

41. A cheque becomes stale after _____? (a) 2 months (b) 3 months (c) 6 months (d) 12 months (e) None of the above

42. Bank conducts Government business at its branches as an agent of _____? (a) RBI (b) SBI (c) Government of India (d) State Government (e) None of the above

43. Foreign exchange Reserves of India are kept in the custody of ______? (a) World Bank (b) International Monetary Fund (c) Prime Minister Rahat Kosh (d) Reserve Bank of India (e) None of the above

44. Which of the following Apex body and Regulator has asked banks to swap customer related information so that the frauds and Defaults may be prevented? (a) Bombay Stock Exchange (b) Indian Banks’ Association (c) Securities & Exchange Board of India (d) Reserve Bank of India (e) None of the Above

45. What is meant by Repo Rate? (a) At what rate of interest banks offer the funds to Reserve Bank of India. (b) At what rate of interest World Bank offer the funds to Central Government for not less than the period of 364 days. (c)At what rate of interest banks borrow the funds from Reserve Bank of India for short term. (d) At what rate of interest banks borrow the funds from the other banks for long term. (e) At what rate of interest central government barrow the funds from the other banks for long term.

46. At present, the Repo Rate is ____? (a) 6.75 percent (b) 8.25 percent (c) 7.00 percent (d) 9.00 percent (e) 8.00 percent

47. If the Repo Rate increases by Reserve Bank of India, rate of interest of the loans offered by the banks _____? (a) Decrease (b) Become Zero (c) Become 100 percent (d) Increase (e) None of the above

48. What measure RBI usually takes to control Inflation in India? (a) RBI decrease the Repo Rate (b) RBI ask the Central Government to increase the Repo Rate (c) RBI cancels the option of Repo Rate (d) RBI declares Repo Rate as Zero Percent (e) RBI increase the Repo Rate

49. Reverse Repo Rate means that _____? (a) the rate at which RBI borrows money from

Central Government. (b) the rate at which state governments borrows

money from banks. (c) the rate at which RBI borrows money from

banks. (d) the rate at which RBI borrows money from

State Government. (e) the rate at which RBI borrows money from

World bank. 50. Gilt-edged securities are _____?

(a) Shares of a private limited company (b) First-class Government securities (c) Shares of a company (d) All of the Above (e) None of the above

51. Certificate of Deposits can be issued for a maximum period of _____? (a) 45 days (b) 3 months (c) 6 months (d) 1 year (e) None of the above

52. As per the news reports, India is reported to be number two in getting “PE”. What is the full form of “PE” as used in the financial world? (a) Professional & Eco-friendly (b) Profitable Equity (c) Profitable & Economical (d) Private & Economy (e) Private & Economical

53. Currency notes printed that are deposited in the currency chest are the property of ______? (a) Respective bank (b) RBI (c) SBI (d) Government of India (e) Respective State Government

54. Which of the following notes cannot be exchanged? (a) Solid notes (b) Mismatched notes (c) Mutilated notes (d) All the above (e) None of the Above

55. Daily operations on the currency chest are advised to ______? (a) RBI (b) Concerned bank (c) Main branch of the district (d) Through link branch to RBI (e) All of the above

56. Spurious coins detected at the counter are sent to ______?





(a) Mint (b) Government of India (c) RBI (d) IBRD (e) None of the above

57. Signature on Re. 1 note is made by the Finance Secretary but on the other notes by _____? (a) Prime Minister (b) President of India (c)Governor of Reserve Bank of India (d) Finance Minister (e) None of the above

58. On a cheque instead of two parallel lines only bank’s name is written. It is a _____? (a) General crossing (b) No crossing (c) Payable to bearer (d) Special crossing (e) None of the Above

59. Which of the following acts as the Regulators for the Credit Rating Agencies in India? (a) RBI (b) SBI (c) SIDBI (d) SEBI (e) ARCIL

60. The Branding line of “Bank of Baroda” is ______? (a) International Bank of India (b) India’s International Bank (c) India’s Multinational Bank (d) World’s Local Bank (e) None of the above

61. The logo of Bank of Baroda is known as ______? (a) Sun of Bank of Baroda (b) Baroda Sun (c) Bank of Baroda’s rays (d) Sunlight of Bank of Baroda (e) None of the above

62. One of the major challenges faced by the Banking Industry is Money Laundering. Name the Act/Norms launched by the banks to curb Money Laundering, in general? (a) Know your customer norms (b) Banking Regulation Act (c) Negotiable Instrument Act (d) Narcotics and Psychotropic Act (e) None of the Above

63. Lots of banks in India offer M-Banking facility to their customers. What is the full form of “M” in it? (a) Money (b) Marginal (c) Massage (d) Mutual fund (e) Mobile

64. A cheque which is not crossed is called _______? (a) Open cheque (b) Bearer cheque (c) Uncrossed cheque (d) Order cheque (e) None of the above

65. The safest form of crossing is ______? (a) Account payee crossing (b) General crossing (c) Special crossing (d) Double crossing (e) None of the above

66. A not negotiable crossing restricts what of the cheque ________?

(a) Transferability (b) Negotiability (c) Neither transferability nor negotiability (d) Both transferability and negotiability (e) None of the above

67. An order cheque can be converted into a bearer cheque by means of ________? (a) Sans recourse endorsement (b) Special endorsement (c) Blank endorsement (d) Sans frais endorsement (e) None of the above

68. In Banking parlance, “Sub-Prime” refers to _______? (a) Lending by Banks at rates below PLR (b) Funds raised by banks at sub-LIBOR rates (c) Group of banks which are not rated as Prime

Banks as per Bankers’ Almanac (d) Lending done by Banks/Fls to customers not meeting with normally required credit appraisal standards (e) None of the above

69. “Federal Reserve” is the Financial Organization of ______? (a) The USA (b) The UK (c) UAE (d) France (e) Japan

70. A charge where there is neither the transfer of ownership nor the possession is called ______? (a) Hypothecation (b) Lien (c) Pledge (d) Mortgage (e) None of the above

71. These days Banks are offering Loans against Property? Under which business segment, this activity may be categorized? (a) Corporate Banking (b) Personal Banking (c) Merchant Banking (d) Portfolio Management-Services (e) None of the above

72. What do we mean by “ECB” in financial terms? (a) Essential Commercial Borrowings (b) Essential Credit & Borrowings (c) External Credit & Business (d) External Commercial Borrowings (e) None of the above

73. “Currency Swap” is an instrument to manage ____? (a) Currency Risk (b) Interest Rate Risk (c) Currency and Interest Rate Risk (d) Cash Flows in different currencies (e) All of the above

74. “Plastic Money” denotes ________? (a) Bearer cheque (b) Credit card (c) Demand Draft (d) Traveller’s cheque (e) Gift cheque





75. RBI has recently introduced Cheque Truncation System, which means that ______? (a) Physical movement of a cheque is stopped between banks and instead an electronic image be exchanged for clearance of funds (b) The physical movement of a cheque for clearance of funds be made more secure (c) Issue of cheques to customers be made more secure by introducing more enhanced security features (d) A new technology to process payments between Banks exclusively (e) None of the Above

76. To define a bank, the basic functions of a bank would be? (a) Accepting Deposits (b) Social Upliftment (c) Lending Funds (d) Both a and c (e) All of the above

77. The term “Floating Rupee” means _____? (a) Limited Convertibility of Rupee (b) Removal of all controls on cross-

movement of Foreign exchange on capital account

(c) Removal of all controls on cross-movement of Foreign exchange on Trade & Services

(d) Removal of controls on cross-movement of US Dollar against Indian Rupee on US- India Trade

(e) None of the Above 78. The DICGC covers Bank Deposits under its Deposit

Insurance Scheme of the commercial banks and includes _______? (a) Foreign Banks operating in India, (b) Regional Rural Banks (c) Co-operative Banks (d) Urban Co-operative Bank (e) All of the Above

79. Under the provisions of Section 16(1) of the DICGC Act, the insurance cover available to the Depositors of a bank “in the same right and in similar capacity” at all the Bank branches of a bank put together is ______? (a) Rs. 2,000 (b) Rs. 25,000 (c) Rs. 100,000 (d) Rs. 500,000 (e) None of the above

80. Certificate of Deposit can be issued by _____? (a) Reserve Bank, NABARD and Exim Bank only (b) Commercial banks and term lending

institutions (c) Scheduled commercial banks excluding regional rural banks (d) All the above (e) None of the above

81. The minimum acceptable amount under the Certificate of Deposit is ____? (a) Rs. 1 lakhs (b) Rs. 10 lakhs (c) Rs. 20 lakhs (d) Rs. 25 lakhs (e) None of the above

82. Banks are promised to grant loans against certificates of deposits _____? (a) Yes (b) No (c) Yes, only to NRI (d) Yes, only up to 50% of the face value (e) None of the above

83. Commercial paper may be issued for a period of ____? (a) 90 days (b) 91 to 180 days (c) 181 days to one year (d) 7 days to 1 year

84. The Stock Exchange Board of India was set up by a Special Act in ____? (a) 1988 (b) 1989 (c) 1987 (d) 1990 (e) None of the above

85. Demand deposits mean _____? (a) Deposits which can be on demand by the

depositor (b) Current deposits (c) Fixed deposits (d) Short deposits (e) None of the above

86. What is Call Money”? (a) Money borrowed and lent for overnight or a day (b) Money borrowed for more than a day but

upto 3 days (c) Money borrowed for more than a day but

upto 7 days (d) Money borrowed for more than a day but

upto 14 days (e) None of the above

87. Time deposits means _____? (a) The deposits which are deposited in a

bank for a fixed period (b) Time deposits include overdue fixed deposits (c) Time deposits do not include recurring

deposits as well (d) Time deposits do not include deposits under

Home Loan Account Scheme (e) None of the above

88. Fixed deposits are for the bank ____? (a) Demand liability (b) Fixed asset (c) Time liability (d) None of the above (e) None of the above

89. The Negotiable Instruments Act deals with ____? (a) Cheques, demand drafts, banker’s cheques (b) Promissory notes, bills of exchange and

cheques (c) Bills of exchange, Cheques and demand

drafts





(d) Cheques, demand drafts and saving bank withdrawal forms

(e) None of the above

90. “Muhammad Yunus” is associated with Banking

Industry and is acclaimed for his contribution in the field of ____? (a) Micro-finance (b) Technological advancement (c) Consumer finance (d) Banking Reforms in Bangladesh (e) Low-cost housing

91. A NBFC is prohibited to offer or undertake _____? (a) accept demand deposits (b) accept time deposits (c) Lend long term loans (d) Pay a higher rate of interest on deposits as

compared to Banks (e) None of the Above

92. Small Industries Development Bank of India is wholly subsidiary of _____? (a) RBI (b) Exim Bank (c) NABARD (d) IDBI (e) None of the above

93. Small Industries Development Bank of India’s Single Window scheme means that a borrower is granted _____? (a) Both term loan for fixed assets and loan

for working capital through the same agency, namely, SFCs or Commercial Banks

(b) Both term and working capital through SIDBI itself

(c) Both term loan and working capital through IDBI

(d) None of the above 93. NABARD provides refinance to ______?

(a) Scheduled commercial banks (b) Co-operative banks (c) Regional rural banks (d) All the above (e) None of the above

94. NABARD provides refinance assistance for ______? (a) Promotion of agriculture (b) Promotion of small scale industries (c) Cottage and village industries

(d) All the above (e) None of the above

95. The Export-Import Bank of India was set up in ______? (a) July 1969 (b) April 1970 (c) January 1982 (d) April 1982 (e) None of the Above

96. Exim Bank also provides ______? (a) Refinance facilities (b) Consultancy and technology services (c) Services of finding foreign markets for

exporters (d) All the above

97. Exim Bank concentrates on ______? (a) Medium-term financing (b) Short-term financing (c) Short and medium-term financing (d) Short and long-term financing (e) None of the above

98. The Regional Rural Banks were set up in _____? (a) January 1, 1975 (b) March 11, 1975 (c) April 1, 1975 (d) October 2, 1975 (e) None of the above

99. Regional Rural Banks were set up under _____? (a) Reserve Bank of India Act (b) Regional Rural Banks Act, 1976 (c) NABARD Act (d) None of the above

100. Regional Rural Banks are classified under _____? (a) Land Developments Banks (b) Co-operative Banks (c) Commercial Banks (d) Public Sector Banks (e) None of the Above

101. The chairman of Regional Rural Bank is appointed by _____? (a) State Government (b) Reserve Bank of India (c) Central Government (d) Sponsoring bank in consultation with

NABARD (e) None of the above

102. Which of the following is not a measure to control inflation as adopted by Govt. of India and/or RBI? (a) Monetary Policy (b) Fiscal Policy (c) Financial Inclusion (d) Price control (e) Bank Rate Policy

103. Current accounts are meant and useful for _____? (a) Investment purposes (b) Identity purposes (c) Savings purposes (d) Day-to-day business needs (e) Operational convenience

104. A _____ card is basically a payment mechanism which allows the holder to make purchase without





any immediate cash outflows either physically or through his accounts? (a) Debit (b) Smart (c) Credit (d) ATM (e) Kisan Credit

105. What do we mean by “Demat Accounts” in the financial markets in India? (a) an account which is opened by the people of

the lower income group of society (b) an account in which trading of shares is

done (c) an account, which can be opened only by the

Minors (d) an account, of the nature of Current account,

which can be opened only by the Corporate Houses

(e) None of the above 106. The ‘monetary base for credit expansion’ consists

of _____? (a) The total value of ‘high-powered money’ (b) The demand and time deposit liabilities (c) The size of the deficit in the government’s

budget (d) All of these (e) None of the above

107. Pledge of advance is made against _____? (a) Gold (b) Commodities (c) Coins and notes (d) All the above (e) None of the above

108. Industrial co-operatives covered under SSI can raise loan without ceiling. The loan will be refinanced by ____? (a) IDBI (b) RBI (c) NABARD (d) DICGC (e) None of the above

109. Which bank does not belong to State Bank Group? (a) State Bank of Indore (b) Banaras State Bank (c) State Bank of Bikaner and Jaipur (d) State Bank of Patiala (e) None of the Above

110. CBS stand for? (a) Centralised banking system (b) Computer based Solution (c) Core banking Solution (d) Customised banking Solution (e) None of the Above

111. Which of the following would fall under Retail Banking? (a) Home Loan (b) Vehicle Loan (c) Credit cards (d) Mutual Funds (e) All of these

112. Convertibility of Rupee means _____? (a) Any amount of Rupee can get converted

into other approved currencies, without any legal complications or any questions asked about the purpose.

(b) A limited amount of Rupee can get converted into other approved currencies, without any legal complications or any questions asked about the purpose.

(c) A limited amount of foreign currency can get converted into Indian Rupee and be kept in a foreign currency Bank deposit, without any legal complications or any questions asked about the purpose.

(d) None of the Above 113. Which of the following is/are true about the “Sub-

Prime Crisis”- term which was in the news recently? (1) It is a Mortgage crisis referring to Credit

default by the borrowers. (2) Sub-Prime borrowers were those borrowers

who were rated low and were high risk borrows.

(3) This crisis originated out of negligence in credit rating of the borrowers.

(a) Only 1 (b) Only 2 (c) Only 3 (d) All of the above (e) None of the above

114. Commercial banks influence money supply through ____? (a) Printing of one rupee notes (b) Augmentation of savings and time deposits (c) Provision of high denomination notes (d) Creation of demand deposits (e) None of the above

115. Minimum cash reserves fixed by law constitute ____? (a) A percentage of aggregate deposits of the

bank (b) A %age of aggregate loans and advances of

the bank (c) A %age of capital & reserves of the bank (d) All of the above is correct (e) None of the above is correct

116. An increase in bank rate, other things being equal, will result into ____? (a) A decline in the cost of credit including

greater and the demand for borrowing (b) An increase in the cost of credit

discouraging demand for credit (c) No change in the cost of credit and the

demand for borrowing (d) Cost of credit has no relationship with

demand for borrowing (e) None of the above

117. Intangible assets are _____? (a) Gold (b) Patents, copyright, goodwill (c) Home (d) All the above (e) None of the above





118. The Banking Regulations Act, 1949 was enacted to _____? (a) Nationalise the banks (b) Open regional rural banks (c) Consolidate and amend the laws relating

to banking companies (d) Inviting foreign banks (e) None of the above

119. The Banking Regulation Act was implemented on ______? (a) September 6, 1949 (b) April 1, 1949 (c) March 10, 1949 (d) March 31, 1949 (e) None of the above

120. The fourteen banks were nationalized on _____? (a) July 19, 1969 (b) June 1, 1969 (c) June 16, 1969 (d) July 1, 1969 (e) None of the above

121. The banks were nationalised with the motive to ______? (a) Develop the country economically (b) Give priority to neglected sectors and exports (c) Extend finances to weak and backward areas (d) All the above (e) None of the above

122. The remaining six banks were nationalised on ______? (a) April 15, 1980 (b) April 5, 1980 (c) April 1, 1980 (d) April 1, 1982 (e) None of the above

123. The six more banks which were nationalized had demand deposits and liabilities of _____? (a) Rs. 50 crores or above (b) Rs. 100 crores or above (c) Rs. 150 crores or above (d) Rs. 200 crores or above (e) None of the Above

124. The main functions of Lead Banks are?

(a) Surveying the resources and potential (b) Assisting the small units and small borrowers

and other primary lending agencies (c) Maintaining contacts and liaison with

government and semi-government agencies (d) All the above

(e) None of the above 125. Who are the Regulators for Regional Rural Bank?

(a) Reserve Bank of India (b) NABARD (c) SIDBI (d) Both A and B (e) None of the above

126. Reserve Bank of India Act, 1934 was enacted on the recommendations of _____? (a) The James Raj Commission (b) The Hilton Young Commission (c) The Banking Commission, 1993 (d) The President of India (e) None of the above

127. The term “Bancassurance” means ______? (a) Assurance of quality services by the Bank (b) Selling of Insurance products by Banks (c) Selling of Third party Mutual Funds Products (d) Selling of Add-on Banking Services (e) Selling of Credit Cards

128. RBI was established on ___________. (a) April 1, 1925 (b) April 1, 1935 (c) April 1, 1945 (d) April 1, 1955

129. Which among the following does the RBI not decide? (a) CAR (b) CRR (c) Base Rate (d) Bank Rate

130. What does ‘T’ in RTGS stand for? (a) Transaction (b) Transfer (c) Tax (d) Time

131. In banking, IFSC code stands for_________________. (a) International Format System Code (b) Indian Function System Code (c) International Forex System Code (d) Indian Financial System Code

132. If a customer does not get a satisfactory response to his grievance from the bank within _____ days, then he can approach the Banking Ombudsman. (a) 60 (b) 90 (c) 30 (d) 15

133. Which of the following organizations is the Mutual Fund Market regulator? (a) AMFI (b) SEBI (c) CIBIL (d) CRISIL

134. Which of the following statements is incorrect regarding RTGS system? (a) The transactions take place in real time (b) The system operates on DNS (Deferred Net Settlement) basis (c) The minimum amount that can be remitted is Rs. 2 lakh (d) Service charges for RTGS transactions vary from one bank to another

135. _____is the organization that maintains the borrower’s history in India.





(a) CRISIL (b) CIBIL (c) CARE (d) RBI

136. RBI has directed commercial banks to resolve ATM transaction-related complaints within seven working days. If a commercial bank is unable to do so then it has to pay Rs.____per day as compensation. (a) 50 (b) 100 (c) 200 (d) 225

137. RTGS as well as NEFT uses (a) UTR Number (b) MICR (c) IFSC (d) DNS

138. Which of the following statement is incorrect about SEBI? (a) SEBI is a capital market regulator (b) SEBI is the mutual fund regulator (c) SEBI also regulates the credit rating agencies in India (d) None of them is wrong

139. What does liquidity mean? (a) It means how cash is converted into gold (b) It means how cheaply and quickly an asset is converted into cash (c) It means how cash is converted into SDR (Special Drawing Rights) (d) It means how uncertain the money market conditions are

140. SWIFT is a commonly used acronym in the banking industry. The ‘I’ in SWIFT stands for_______. (a) Interbank (b) International (c) Intercom (d) Indian

141. ________isn’t a method of measurement of National Income. (a) Value-added method (b) Income method (c) Investment method (d) Expenditure method

142. In India, the commercial banks are required to provide ____ ___ % of their ANBC (Adjusted Net Bank Credit) to priority sector. (a) 15 (b) 25 (c) 35 (d) 40

143. What does FSDC stand for? (a) Financial Security and Development Council (b) Financial Stability and Development Council (c) Fiscal Security and Development Council (d) Fiscal Stability and Development Council

144. ___________has been declared the first ‘total banking state’ in India, successfully implementing the total financial inclusion thereby ensuring banking facility to all households. (a) Maharashtra (b) Kerala (c) Himachal Pradesh (d) Uttarakhand

145. RBI has introduced “Marginal Standing Facility” with the objective of:

(a) Controlling Inflation (b) Containing instability in long term inter-bank rates (c) Containing instability in the overnight inter-bank rates (d) All of the above

146. _____________are the beneficiaries of the “Reverse Mortgage Scheme”. (a) Government employees (b) Senior citizens (c) Unemployed persons (d) Persons of BPL category

147. RBI was nationalized in the year (a) 1949 (b) 1952 (c) 1955 (d) 1964

148. Which of the following is/are associated with the fiscal policy?

1. Marginal Standing Facility 2. Devaluation of Currency 3. Market Stabilization Scheme

(a) 1 & 2 (b) Only 3 (c) 2 & 3 (d) Only 2

149. ______is the percentage of total deposits of a bank which it has to keep with itself in the form of liquid assets. (a) Statutory Liquidity Ratio (SLR) (b) Cash Reserve Ratio (CRR) (c) Statutory Reserve Ratio (d) Cash Ratio

150. The exchange rate in India is dependent upon: 1. Government policy 2. Demand-supply forces 3. Monetary policy objectives (a) Only 2 (b) 2 & 3 (c) 1 & 2 (d) 1, 2 & 3

151. Collateralized Borrowing and Lending Obligation (CBLO) is a/an ________. (a) Money Market Instrument (b) Instrument of Monetary Policy (c) Type of Risk Cover (d) Stock Market Instrument

152. Often, we read in newspapers that the RBI has changed the Repo rate and the Reverse Repo rate by a few basis points. What is a basis point? (a) Ten % of one hundredth point (b) One hundredth of 1 (c) One tenth of 1% (d) Ten % of 100

153. Banks generally don’t pay interest on money deposited in which of the following accounts? (a) Savings account (b) Current account (c) Fixed deposit account (d) None of these

154. ‘Fiat Money’ is defined as the money which is (a) Accepted internationally (b) Accepted temporarily in lieu of gold (c) Issued by keeping gold or silver as deposit





(d) Decreed as money by the government 155. Demand-pull inflation can be caused by which of

the following? (a) A decline in consumption expenditure (b) A sharp increase in lending rates (c) A steep decline in income tax (d) An increase in direct taxation

156. For obtaining which among the following does a customer not require a bank account? (a) A loan (b) A cheque (c) A banker’s draft (d) A credit card

157. RBI isn’t expected to perform the role of (a) Acting as a clearing house (b) Working as a banker to the government (c) Managing forex (d) Accepting deposits from general public

158. In India, which among the following is/are a part of Legal Tender Money? (a) Both coins and currency notes (b) Both coins and bank drafts (c) Both currency notes and SDRs (d) Only currency notes issued by RBI

159. __________is the duty applied by a government to control the exports of an article of trade, so that the article of trade can be used by the local markets rather than in foreign countries. (a) Customs duty (b) Excise duty (c) Anti-dumping duty (d) Dumping duty

160. Who decided on the quantity of coins to be minted? (1) The Government of India (2) RBI (3) Either 1 or 2 (4) All of the above (5) None of the above 161. Which among the following is not incorrect?

(a) Money market provides long term source of finance (b) Recession in the industrial sector in India is normally due to a fall in exports (c) Ways and means advances given by RBI are nowhere related to the state’s revenue (d) Exchange rate is fixed by RBI

162. We have read in the newspapers that the Government of India has signed a DTAA to broaden the scope of article of exchange of information to include exchange of banking information. What does DTAA stand for? (a) Double taxation article agreement (b) Double taxation avoidance agreement (c) Double taxation avoidance arrangements (d) Dual tax agreement arrangement

163. Which of the statements mentioned below is/are correct? 1. T-bills are issued by the Government of India on behalf of the RBI

2. T-bills are short-term money market instruments 3. T-bills cannot be purchased by a resident of India (a) All are correct (b) 2 & 3 are correct (c) Only 2 is correct (d) Only 3 is correct

164. Which of the following is an incorrect statement? (a) Reverse Repurchase operation by RBI is aimed at increasing the liquidity in the banking system (b) Special Drawing Rights (SDR) are issued by IMF (c) Rupee appreciation results in decrease in imports (d) Increase in the inflation rate leads to decline in real interest rate

165. What purpose does the MICR number, which is present on a cheque, serve? (a) It is used to identify the genuineness of the cheque (b) It is used to identify the bank branch (c) It is nothing but a type of cheque number (d) Both (a) and (b)

166. In TRIPS, what does ‘I’ stand for? (a) Intellectual (b) Information (c) Indian (d) Infra

167. Insurance companies use the bank sales channels to sell their products. Which of the following terms describes this selling process? (a) Scheduled banking (b) Scheduled Insurance (c) Bankinsuring (d) Bancassurance

168. Which of the following acts is useful in controlling HAWALA transactions? (a) FEMA Act (b) RBI Act (c) DICGC Act (d) Banking Regulation Act

169. What does the term SME stand for? (a) Small and Micro Enterprises (b) Small and Medium Enterprises (c) State and Medium Economy (d) Small and Medium Economy





170. ‘CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for? (a) Currency (b) Compensation (c) Capital Adequacy (d) Capitalisation

171. In banking parlance, ‘NPA’ stands for (a) Non Performing Asset (b) Net Producing Asset (c) Net Performing Asset (d) Not Promoting Asset

172. LAF is an indirect instrument of monetary policy, which is used by \RBI to regulate the liquidity in banking system. ‘LAF’ stands for: (a) Liquidity Adjustment Facility (b) Liquidity Account Facility (c) Liquidity Allotment Facility (d) Long Adjustment Feature

173. _____________are NOT a part of the Scheduled Banking structure in India. (a) Money lenders (b) Public sector banks (c) Private sector banks (d) Regional rural banks

174. ‘MAT’ is an acronym which stands for (a) Maximum Alternate Tax (b) Minimum Alternate Tax (c) Minimum Affordable Tax (d) Maximum Affordable Tax

175. Often, we read in the newspapers that several Indian companies are taking the FCCB route to raise capital. What does the term FCCB stand for? (a) Foreign Currency Convertible Bond (b) Foreign Convertible Credit Bond (c) Financial Consortium and Credit Bureau (d) Future Credit and Currency Bureau

176. ________________was the main objective of the Fiscal Responsibility and Budget Management Act, 2003. (a) Achieving fiscal surplus (b) Eliminating revenue deficit (c) Eliminating fiscal deficit (d) Stopping money laundering

177. DEPB (Duty Entitled Passbook) scheme which ended in September 2011 was related to (a) Foreign direct investment (b) Foreign institutional investment (c) Export promotion (d) Import substitution

178. ‘KYC’ (Know Your Customer) norms were implemented in the Indian banking system in 2002 as per the directive of (a) SEBI (b) RBI (c) IBA (d) IRDA

179. For issuing notes, RBI has required to hold the minimum reserve of Rs. 200 crore of which not lesss than Rs…. crore to be hold in gold. (1) 85 (2) 100 (3) 115 (4) 125 (5) 200

180. Which of the following is a correct statement ?

(a) Normally no interest is paid on current deposit accounts, (b) Interest is paid on current accounts at the same rate as term deposit accounts (c) The rate of interest on current account and savings account are the same (d) No interest is paid on any deposit by the bank, (e) Savings deposits are the same as current deposits

181. What do you understand by the term ‘Mortgage’? (a) Sale of moveable security in the event of default by the borrower (b) Registration of charge with the Registrar of Companies (c) Making the security of immovable property available as a cover for a home loan by the borrower (d) Registration of charge with the Regional Transport Authority (e) Returning of the security to borrower by the bank of receipt of full payment

182. Which of the following is NOT a source of funds of a commercial bank? (a) Capital, (b) Borrowings from RBI (c) Call money, (d) Deposits (e) Cash reserves with RBI

183. The Banking Ombudsman (a) is in charge of bank loan for buses, (b) fixes the rates of interest for loans (c) resolves complaints of customers (d) issues licences for new bank branches (e) is the head of all nationalized banks

184. “Scheduled bank” means a bank (a) incorporated under the Companies Act, 1956, (b) authorized to the Banking business, (c) governed by the Banking Regulation Act, 1949, (d) Included in the Second schedule to the Reserve Bank of India Act 1934

185. For filing and resolving customer complaints the banking Ombusdsman (a) charges a fee of 500/- , (b) does not charge any fee (c) charges a fee of 1500/- (d) charges a fee of 1000/-, (e) none

186. How many banks are presently associated of State Bank of India ? (a) Eight, (b) Seven (c) Six, (d) Five (e) Four





187. To use smart cards/ debit cards/ credit cards for the purchase of an item or for payment of a service of a merchant’s store, the card has to be swiped in a terminal known as: (a) Point of Sale terminal, (b) Real time terminal (c) Shopping terminal (d) All of the above, (e) None of the above

188. A bank account in which a depositor can deposit his funds any number of times he likes and can also withdraw the same any number of times he wishes is called (a)Fixed deposit account, (b) Saving account (c) Current Account (D) Recurring account

189. Any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable is a/an (a) mutilated note, (b) imperfect note, (c) soiled note, (d) mismatched note , (e) none of these

190. Expand the term ALM as used in Banking/ Finance sector: (a) Asset Liability Management, (b) Asset Liability Maturity (c) Asset Liability Mismatch, (d) Asset Liability Manpower (e) Asset Liability Maintenance

191. For repayment of loan availed from Banks/ NBFC we come across a term known as EMI. What does it stand for? (a) Equated Money index, (b)Easy Money Installment (c) Equated Monthly Installment (d) Equal Monthly Installment (e) Equal Minimum Installment

192. The loan amount in case of a reverse mortgage is

decided taking into account which of the following? (a) Value of House property, (b) Age of the borrower (c) prevalent Interest rates. (1) only (A), (2) Only (B), (3) Only (C), (4) All (A), (B),& (C) (5) none of these

193. In India, the RBI prescribes the minimum SLR level for Scheduled Commercial Banks in India in specified assets as a percentage of Bank’s (a) Net Demand and Time Liabilities, (b) Demand Liabilities (c) Time Liability, (d) None of the above (e) All of the above

194. The methods of credit control by the Reserve Bank of India may be broadly divided into two parts .These are: (a) open and close, (b) Quantitative and Qualitative (c) monetary and fiscal (d) rural and urban (e) none of the above

195. As per the directives issued by RBI, a cash credit or overdraft account will be treated as Non-performing Asset if: (a) the account remains ‘out of order’ (b) there are no credits in the account in the month in which interest is applied (c) the debit balance in the account has exceeded the sanctioned limit during the reporting month (d) all of the above(e) none

196. If neither the word ‘Bearer’ nor ‘Order’ is written on a cheque , payment will be made by treating it as: (a) Bearer Cheque, (b) an Order Cheque (c) At bank’s discretion (d) cannot be paid at all (e) None of the above

197. Currency notes issued by RBI are fully covered by: (a) Approved assets, (b) Gold (c) Foreign exchange (d) All of these (e) None of the above

198. The government has stipulated that quoting Permanent Account Number is mandatory for (a) Current Accounts, (b) Demat Account (c) Term Deposits (d) Savings Bank (e) None of the above

199. Truncation of cheques means: (a) The cheques in the paper form will be retained by the collecting banker and he will submit (b) Entire clearing operations would be done only through computers (c) Cheques will be scanned and the electronic image, instead of physical cheque, will be transmitted in the clearing cycle (d) Debiting the drawer’s account through internet banking (e) None of the above

200. The paid –up capital of Non- Scheduled Bank is less than (a) 5 lakh, (b) 10 lakh (c) 12 lakh (d) 15 lakh (e) None of the above





201. In case a depositor wishes to withdraw his deposits prematurely, banks (a) do not allow the same till maturity of the deposits (b) charge a penalty for the same (c) do not charge any penalty and allow the same (d) do not allow premature withdrawal (e) none of the above

202. When the foreign exchange deals take place through telephone or other electronic system (and not through an exchange) it is called— (a) over the counter (b) over the electronic media (c) over all channels (d) over the exchange (e) none of these

203. What is a ’Debit Card’?

(a) it is a card issued by a Rating Agency, (b) it is a card which can be used for withdrawing cash or making payment even in the absence of any balance in the account , (c) it is a card which can be used for withdrawing cash or making payment if there is balance in the account (d) it is a card which carries prepaid balance, (e) It is a card which can be used for making STD calls.

204. Which of the following correctly describes what sub-prime lending is? A. Lending to the people who cannot return the loans. B. Lending to the people who are high value customers of the banks. C. Lending to those who are not a regular customer of a bank. (a) Only A, (b) Only B (c) Only C, (d) All, A, B and C (e) A and C

205. Which among the following is not a power of RBI? (a) Inspection of banks, (b) Nationalization of Banks (c) Call of returns, (d) Control the lending policies of the banks (e) All are powers

206. Open Market Operation By RBI are the part of its (a) Fiscal Policy, (b) Non fiscal Policy (c) Income Policy, (d) Credit policy, (e) none of these

207. When it comes to the following term namely-IPO, what do you mean by “P”? (a) Provisions; b) Public; c) Private; d) Prudent; e) Pension

208. What do you mean by “C” in the term called as FMCG? (a) Customer; b) consumer; c) creditor; d) country; e) none of the above

209. In the term called as AMFI, what do you mean by “M”? (a) Mutual; b) money; c) Managing; d) Miscellaneous; e) none of the above

210. When it comes to the following term namely- PLR – what do you mean by ”L”? (a) Liberalisation; b) Liquidity; c) Lending; d) License; e) Loan

211. When it comes to the term called as “OTCEI”, what do you mean by “E”? (a) Exchange; b) Environment; c) Environment; d) Entitlement; e) Enlistment

212. ______refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange.

(a) Security market; b) secondary market; c) stock market; d) Bond market; e) debenture market

213. When it comes to the following term – FPO, what do you mean by “F”? (a) Further; b) facility; c) favour; d) Follow On e) none of the above

214. In the ______________, the securities like shares and debentures are offered to the public subscription for the purpose of raising capital or fund: (a) Secondary market; b) Primary market; c) share market; d) debenture market; e) none of the above

215. MICR bank code line on a cheque consists of besides the cheque or draft number, nine digits number. What do the first three digits of this number denote? a) Centre/city; b) Bank; c) Branch of a bank; d) account category – current account/savings bank/cash credit account; e) none of the above

216. You are aware of MICR code available at the bottom of the cheque/draft and what the last three digits of a nine digits number on a MICR band code line denote? a) Centre/city; b) bank; c) Branch of a bank; d) Account category – savings bank/current account/cash credit account; e) none of the above





217. Can you say what do the middle three digits of a nine digits number on a MICR band code line denote? a) Centre/city; b) bank; c) Branch of a bank; d) Account category – current account/savings bank account/cash credit account; e) None of the above

218. What do you mean by a clearing house? a) Collection centre for cheques and demand drafts; b) Pooling centre for excess currencies received from the branches; c) Collection centre for collection of tax and other receipts; d) collection centre for issuing debit and credit cards to customers; e) None of the above

219. You Are Aware Of The Existing Of Bcsbi – Can You Provide The Missing Words In The Term: Banking _______And ______Board Of India? A) Codes And Settlements; B) Codes And Standards; C) Companies And Standards; D) Committees And Systems; E) Commissions And Selectors

220. The returned non-resident Indians are permitted to open the following accounts: a) Non-resident external account; b) Non-resident ordinary account; c) RFC account; d) FCNR account; e) None of the above

221. The main foreign exchange reserves in the country comprises of the following: a) Foreign currency assets; b) Gold stock; c) Special drawing rights; d) Reserve tranche position; e) All the above

222. MIBOR represents a) The interest rate at which bank borrows fund from other banks; b) The interest rate at which bank borrows from RBI; c) the interest rate at which RBI borrows from commercial banks; d) the rate at which banks borrow from the public; e) the rate at which the banks in India borrows from foreign banks

223. What do you mean by CRISIL? a) Credit rating information services of India Limited;

b) Credit rating Intelligence services of India Limited; c) Credit rating Indicative services of India Limited; d) Credit rating integrated services of India Limited; e) none of the above

224. In banking the term DTL refers to; A. Detail time limit. B. Demand and time limit.

C. Demand and time liabilities D. None of these.

225. Full form of the term "FINO" is- A. Financial inclusion network and operations.

B. Financial inclusion news and operations. C. Financial investment network and operations. D. None of these.

226. Gross Domestic Product is defined as the value of all: (1) Goods produced in an economy in a year (2) Goods and services produced in an economy in a year (3) Final Goods produced in an economy in a year (4) Final Goods and services produced in an economy in a year

227. The Draft of the Five Year Plans in India is approved by the: (1) National Development Council (2) Planning Commission (3) National Productivity Council (4) Ministry of Finance

228. Deficit financing implies- (1) Printing new currency notes (2) Replacing new currency with worn out currency (3) Public revenue in excess of public expenditure (4) Public expenditure in excess of public revenue

229. Present minimum & maximum limit for RTGS transactions is ____. (1) Rs.50000, Rs 200000 (2) Rs. 1 lac, No Limit (3) Rs. 2 lac, Rs 5 lac (4) Rs.5 lac, Rs 10 lac (5) Rs. 2 lac, No Limit

230. The Capital Account Convertibility of the Indian rupee refers to:





(1) that the Indian rupee can be exchanged for the US dollar for international trade in goods and service (2) that the Indian rupee can be exchanged for any major currency for the purpose of trading financial assets (3) that the Indian rupee can be exchanged by the authorized dealer for travel purpose (4) that the Indian rupee can be exchanged for any major currency for the purpose of trade in goods and services (5) None of the above




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