financial institutions & banking_combined

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The BlankQuestion The Shipping Credit and Investment Company of India Ltd. has

changed its name to ________ effective from October 1992.Correct Answer SCICI Ltd

Your Answer SCICI Ltd

Multiple Choice Multiple Answer Question IFC provides financial assistance :-

Correct Answer Through loans , Through purchase of shares , For economic

developmentYour Answer Largely as aid , Through loans

Select The BlankQuestion Period of Holiday Insurance is ________.

Correct Answer Six months or less

Your Answer Six months or less

Multiple Choice Multiple Answer Question From time to time RBI has issued :-

Correct Answer Straight coupon bonds , Inflation linked bonds , Zero couponbonds

Your Answer Straight coupon bonds , Inflation linked bonds , Zero couponbonds

Multiple Choice Multiple Answer Question R B I issues currency notes against the security of:-

Correct Answer Gold bullion , Foreign securities , GOI securities

Your Answer Gold bullion , Foreign securities , GOI securities

Multiple Choice Single Answer Question The type of banking involving a small number of Large

Customers viz.Corporates & multinationals is :-Correct Answer Wholesale Banking

Your Answer Wholesale Banking

True/False



Question NABARD is an apex institution in the field of Integrated RuralDevelopment.

Correct Answer True

Your Answer True

Select The BlankQuestion The ________ are buy and hold investors and almost never

trade on their investments.Correct Answer Provident Funds

Your Answer Mutual Funds

Multiple Choice Multiple Answer Question Under Project Finance Scheme IDBI provides assistance for :-

Correct Answer New Projects , Renovation , Modernisation

Your Answer New Projects , Renovation , Modernisation

Multiple Choice Multiple Answer Question In case of a Life policy it is possible to withdraw from the

obligation to contribute further premium by :-Correct Answer Surrendering the policy , Converting it into paid up policy ,

Assigning it in the open market

Your Answer Surrendering the policy , Converting it into paid up policy ,Assigning it in the open market

Multiple Choice Multiple Answer Question IDA lends to poor countries :-

Correct Answer By lending at 0% interest. , For periods up to ten years , Byborrowing from IBRD

Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer Question Financial institutions deal in :-

Correct Answer Financial assets

Your Answer Financial assets

Multiple Choice Multiple Answer Question Functions of a Bank's H.O. include:-

Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control



Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Single Answer Question Treasury bills are issued by :-

Correct Answer RBI

Your Answer RBI

True/FalseQuestion The bids for T-Bills are on price/interest basis.

Correct Answer True

Your Answer True

True/FalseQuestion No TDS is deducted on Interest paid on CDs.

Correct Answer True

Your Answer True

Multiple Choice Single Answer Question The underdeveloped markets are characterised by :-

Correct Answer Government regulation and control

Your Answer Government regulation and control

Multiple Choice Multiple Answer Question Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer Sponsor , Trust , Asset Management company

Multiple Choice Multiple Answer Question Prominent Institutional Investors are :-

Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Multiple Choice Single Answer Question A record of the holdings of GOI dated securities of each holder

is contained in :-



Correct Answer SGL pass book

Your Answer SGL pass book

Multiple Choice Single Answer Question The unorganised financial system includes :-

Correct Answer Indigenous bankers

Your Answer Indigenous bankers

Multiple Choice Single Answer Question SIDCs & SIICs are under the control of :-

Correct Answer State Governments

Your Answer State Governments

True/FalseQuestion PFC has been persuading State Governments restructuring of

their power sector to make them viable.Correct Answer True

Your Answer True

Match The Following

Question Correct Answer Your Answer

Advances Loans/cash credits Loans/cash credits

Cash withdrawal facility ATM ATM

Remittances MT/DD/TT/EFT MT/DD/TT/EFT

Government business Collection of taxes Collection of taxes

Select The BlankQuestion GIC raises funds to meet claims from ________.

Correct Answer Premium collected

Your Answer Premium collected

Select The BlankQuestion The CRAFICARD recommended the establishment of

_______.



Select The BlankQuestion The ________ meet the long and medium term credit needs of

agriculture.

Correct Answer Land Development Banks

Your Answer Regional Rural Banks

Multiple Choice Single Answer Question Zero Coupon Bonds are issued at a :-

Correct Answer Discount to face value

Your Answer Discount to face value

True/FalseQuestion NABARD provides Refinance for Marketing of Crops.

Correct Answer True

Your Answer False

True/FalseQuestion The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer False

Multiple Choice Multiple Answer Question Soft Loan Scheme for modernisation is provided by :-

Correct Answer IFCI , ICICI , SIDBI

Your Answer ICICI

True/FalseQuestion In case of T-Bills potential investors have to put in competitive

bids.Correct Answer True

Your Answer True

Match The Following


Development financialinstitutions

IFCI IFCI



Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI

True/FalseQuestion Non bank financial institutions undertake fund and non fund

based activities.Correct Answer True

Your Answer True

Multiple Choice Single Answer Question Instruments issued by DFIs and Banks carry :-

Correct Answer Highest credit ratings

Your Answer Highest credit ratings

Multiple Choice Single Answer Question For a focus on the SSI Sector in 1986 IDBI created :-

Correct Answer SIDF

Your Answer SIDF

True/FalseQuestion Amongst others, ICICI also provided long and medium term

loans or equity finance.Correct Answer True

Your Answer True

Select The Blank

Question Interest on advances is generally calculated on ________ products.Correct Answer Daily

Your Answer Fortnightly

Select The BlankQuestion The ________ has been accredited by RBI as a Primary Dealer

in Governemt Securities.Correct Answer STCI



Your Answer GIC

Select The BlankQuestion _______ is merely an asset created out of book entries.

Correct Answer SDR

Your Answer SDR

Multiple Choice Single Answer Question Development Financial Institutions provide finance to the needy

Correct Answer Corporates & govt. institutions

Your Answer Corporates & govt. institutions




Multiple Choice Multiple Answer Question SIDBI provides :-

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

True/FalseQuestion NABARD does not provide Refinance for stocking & distribution

of Chemical Fertilisers.Correct Answer False

Your Answer False

Multiple Choice Single Answer Question Which of the following services is not provided by Commercial

banks?Correct Answer Deposit Insurance

Your Answer Deposit Insurance

Multiple Choice Single Answer Question IDBI has helped in the establishment of :-

Correct Answer EXIM Bank

Your Answer IFCI

Select The BlankQuestion DFIs are the second largest issuer of ________ after the Govt

and Sovereign bodies.Correct Answer Debt instruments

Your Answer Debt instruments

True/FalseQuestion A Cheque is a Negotiable Instrument.

Correct Answer True

Your Answer True

True/False



Question State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question IIBI (formerly known as IRBI )undertakes :-

Correct Answer Merchant Banking activities , Lease or hire purchase finance ,Consultancy & managerial services

Your Answer Merchant Banking activities , Lease or hire purchase finance ,Consultancy & managerial services

True/FalseQuestion Development financial institutions primarily lend to Agriculture

sector.Correct Answer False

Your Answer False

True/FalseQuestion Banks do not invest in the GOI securities .


Your Answer False

Select The BlankQuestion NABARDs Criteria for Refinance covers Technical ________ of

the project.Correct Answer Feasibility

Your Answer Feasibility

True/FalseQuestion IMF discourages excessive use of its resources by imposing a

surcharge on large loans.Correct Answer True

Your Answer True

Select The BlankQuestion As a banker to the Government, RBI accepts Government

deposits at ________% interest.Correct Answer 0



Your Answer 0

Select The BlankQuestion HDFCs loans were linked up with________.

Correct Answer Planned Savings

Your Answer Planned Savings

Multiple Choice Multiple Answer Question Other than Tourism, International funds remittances comprise of

:-Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty

Your Answer Donations/Charity , Payments of Royalty

Multiple Choice Single Answer Question PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer Power

Multiple Choice Single Answer Question A major part of the credit of SFCs went to :-

Correct Answer SSI units

Your Answer SSI units

Multiple Choice Single Answer Question Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer Over one year

Select The BlankQuestion In addition to IFCI and ________ the Soft Loan Scheme for

modernisation is also undertaken by IDBI.Correct Answer ICICI

Your Answer ICICI

True/FalseQuestion A Bill of Exchange is negotiable.



Correct Answer True

Your Answer True

Select The BlankQuestion NHB at present has a ________ Capital of Rs. 350 crores.

Correct Answer Paid-up

Your Answer Paid-up

Select The BlankQuestion he term ________ refers to the act of a bank extending finance

to the seller against a letter of credit.

Correct Answer Negotiation

Your Answer Negotiation

True/FalseQuestion Under MIGA the World bank offers various forms of Political

Insurance.Correct Answer True

Your Answer True

Select The BlankQuestion The loans under________ are based on Poverty Reduction

Strategy Paper.Correct Answer PRGF

Your Answer PRGF

Multiple Choice Multiple Answer Question The general insurance business can be :-

Correct Answer Marine insurance , Fire insurance , Miscellaneous

Your Answer Marine insurance , Fire insurance , Miscellaneous

Multiple Choice Single Answer Question FIs can be classified into two categories depending on the basis

of incorporation and :-Correct Answer Operation

Your Answer Size

Multiple Choice Multiple Answer



Question The main objective of ICICI was :-

Correct Answer To augment export finance in India , To channelise World

Bank's funds to industries in India , To help in building up aCapital Market in India

Your Answer To augment export finance in India , To help in building up aCapital Market in India , To aid Rural Development in India

Multiple Choice Single Answer Question SIDCs & SIICs give loans ,guarantees & :-

Correct Answer Lease finance

Your Answer Lease finance

Multiple Choice Single Answer Question Commercial Papers are issued by :-

Correct Answer Corporates

Your Answer Corporates

True/FalseQuestion SCICI is a member of the OTCEI.

Correct Answer True

Your Answer True

Select The BlankQuestion The extent of powers enjoyed by a branch depends on the size

of its ________.Correct Answer Business

Your Answer Business

True/FalseQuestion Gramin banks are State Owned Banks.

Correct Answer True

Your Answer False

True/FalseQuestion NIDHIS are Trading Organisations.




Your Answer True

Multiple Choice Single Answer Question Corporate Debentures are :-

Correct Answer Long term debt instruments

Your Answer Long term debt instruments

Multiple Choice Multiple Answer Question Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer Credit report , Banker's report , Confidential report

Match The Following


Largest borrower in theworld

IBRD IBRD

International MonetaryCooperation

IMF IMF

Prevention of crises CCL CCL

Political insurance MIGA MIGA

Multiple Choice Single Answer Question The apex institution in the field of Industrial Development is :-

Correct Answer IDBI

Your Answer IDBI

Multiple Choice Single Answer Question Bills Rediscounting Scheme of IDBI was introduced in the year

:-Correct Answer 1965

Your Answer 1965

Select The BlankQuestion Development financial institutions have been established to

cater to ________ of the industrial sector.Correct Answer Long term financial needs



Your Answer Long term financial needs

Select The BlankQuestion The ________ was set up to help corrections in BOP

maladjustments.Correct Answer IMF

Your Answer UNO

Multiple Choice Multiple Answer Question A member's IMF Quota determines its :-

Correct Answer Financial commitment , Voting power , Drawing power

Your Answer Financial commitment , Voting power , Drawing power

Multiple Choice Multiple Answer Question Functions of R.O. of a bank include :-

Correct Answer Inspection/audit , Control on branches , Grant loans/advances

Your Answer Control on branches , Grant loans/advances , Pay interest ondeposits

Multiple Choice Single Answer

Question IDBI introduced Automatic Refinance Scheme in the year :-

Correct Answer 1978

Your Answer 1975

Select The BlankQuestion The ________ is the apex institution in the field of foreign trade

in India.Correct Answer EXIM bank

Your Answer EXIM bank

Multiple Choice Multiple Answer Question SFCs provide finance to :-

Correct Answer Corporates , Partnerships , Proprietary firms

Your Answer Corporates , Partnerships , Proprietary firms

Match The Following




Aquaculture ,BrackishWater

Fisheries Fisheries

Ploughing, weeding,transplantation

Seasonal AgriculturalOperations

Irrigation & Drainage

Market Yards, Storage &Warehousing

Agricultural Marketing Agricultural Marketing

Hill ,Tribal Areadevelopment

Area Development Area Development

Multiple Choice Multiple Answer Question The financial Assistance provided by the IMF enables member

countries to :-Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer Rebuild resources , Stabilise currencies , Pay for imports




True/FalseQuestion NABARD provides short term refinance for procurement

activities also.Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question Tourism promotes :-

Correct Answer Credit Card Business , International remittances , Travellers'

ChequesYour Answer Credit Card Business , International remittances , Travellers'

Cheques

True/FalseQuestion HDFC was set up by NHB.


Your Answer False

Multiple Choice Single Answer Question IMF articles were amended in 1978 to legalise the :-

Correct Answer Floating exchange rates

Your Answer Special drawing rights

Select The BlankQuestion Syndication involves ________ sanction.

Correct Answer In principle

Your Answer In principle

Multiple Choice Single Answer Question The organised financial system includes :-

Correct Answer Commercial banks

Your Answer Commercial banks

Match The Following




CRR Primary reserverequirement

Prevention of speculativehoarding in

Bankers Bank Controlling the reserves of commercial banks

Controlling the reserves of commercial banks

Exchange control FEMA FEMA

OMO Government securities Secondary reserverequirement

Multiple Choice Multiple Answer Question The prominent Bond issuing PSU are :-

Correct Answer MTNL , NTPC , SAIL

Your Answer MTNL , NTPC , SAIL

Select The BlankQuestion The Premium of ________ is obtained through obligatory

reinsurance premium.Correct Answer GIC

Your Answer GIC

Select The BlankQuestion The ________ does not collect Savings from the Public.

Correct Answer NIICO Ltd.

Your Answer NIICO Ltd.

Multiple Choice Single Answer Question Development Financial institutions include :-

Correct Answer State financial institutions

Your Answer State financial institutions

Match The Following


Money MarketInstruments

CP, T- Bills CP, T- Bills

Negotaible Instruments Bills of exchange,Cheques

Bills of exchange,Cheques



GOI securities ZCB, ILBonds ZCB, ILBonds

Long Term Debtinstruments

PSU Bonds PSU Bonds

Select The BlankQuestion NABARD took over the functions of ACD, RPCC of RBI &

_______.Correct Answer ARDC

Your Answer ARDC

Select The BlankQuestion The price in financial markets is known as ________.

Correct Answer Rate of interest

Your Answer Rate of interest

True/FalseQuestion Banks lend to corporates directly.

Correct Answer True

Your Answer True

True/FalseQuestion Banks authorised to deal in foreign exchange are known as

Authorised Dealers.Correct Answer False

Your Answer False

True/FalseQuestion Under open market operation RBI conducts buyi ng /selling

shares/debentures of blue chip companies.


Your Answer False

Multiple Choice Single Answer Question Initial Quantum of resources of IMF were contributed by

members according to :-Correct Answer Quotas fixed for members

Your Answer Quotas fixed for members



Multiple Choice Single Answer Question The ultimate source of money in India is:-

Correct Answer RBI

Your Answer RBI

Multiple Choice Multiple Answer Question ECGC Board comprises of Directors representing :-

Correct Answer Government , Banking/Insurance , Trade/Industry

Your Answer Government


is contained in :-Correct Answer SGL pass book


Multiple Choice Multiple Answer Question Which of the following statements are not prepared on a daily

basis in branch?

Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer Cash Book , Trial Balance , P/L statement

Multiple Choice Single Answer Question Size of the Quota depended upon :-

Correct Answer GNP

Your Answer GNP

Multiple Choice Multiple Answer Question DICGC does not insure the deposits :-

Correct Answer Of foreign Governments , Of State Cooperative Banks , Of theCentral Government

Your Answer Of foreign Governments , Of State Cooperative Banks , Of theCentral Government

Select The BlankQuestion Financial markets are the centres that provide facilities for

buying and selling of ________.



Correct Answer Financial claims and services

Your Answer Goods and services

Multiple Choice Multiple Answer Question Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Regional /Sectoral planning , Benchmark Surveys , Pre-feasibility studies

Your Answer Pre-feasibility studies , Regional /Sectoral planning , BenchmarkSurveys

Select The BlankQuestion In a Bank, the investment decisions are taken at ________

level.Correct Answer Head Office

Your Answer Head Office

True/FalseQuestion The SFCs also borrow from SIDBI & IDBI.


Your Answer False

Multiple Choice Single Answer Question IRBI was set up with a focus on :-

Correct Answer Sick Units

Your Answer Sick Units

Multiple Choice Single Answer Question SFCs suffer from a very high ratio of:-

Correct Answer Overdues

Your Answer Overdues

Multiple Choice Multiple Answer Question Functions of NIDHIs include :-

Correct Answer Accepting Deposits , Granting loans , Encourage thrift

Your Answer Accepting Deposits , Granting loans , Speculation




Question R B I conducts monetary control by way of O M O in :-

Correct Answer Treasury bills , State /central Government Securities

Your Answer Treasury bills , State /central Government Securities

Multiple Choice Single Answer Question The foreign currency account maintained by an authorised

dealer with its correspondent abroad is :-Correct Answer Nostro Account

Your Answer Nostro Account

Select The Blank

Question Mutual Funds provide the benefits of ________.

Correct Answer Portfolio management

Your Answer Bulk investment

Select The BlankQuestion An ________ letter of credit cannot be canceled by the buyer

ithout the seller's consent.Correct Answer Irrevocable

Your Answer Irrevocable

Multiple Choice Single Answer Question The primary sources of IMF resources are :-

Correct Answer Quotas

Your Answer Quotas

Multiple Choice Multiple Answer Question The unorganised financial system comprises of :-

Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers


Multiple Choice Single Answer Question The first long term industrial financing corporation set up in the

country was : -Correct Answer IFCI

Your Answer IFCI



Select The BlankQuestion The HDFC was set up in 1977 by the ________.

Correct Answer ICICI

Your Answer ICICI

Multiple Choice Single Answer Question One of the leading All India FI is :-

Correct Answer SIDBI

Your Answer LIC

True/FalseQuestion Small Savings are source of Capital Receipts for the

Government.Correct Answer True

Your Answer True

True/FalseQuestion The overdraft facility is also known as Cash credit facility.

Correct Answer True

Your Answer False

Multiple Choice Single Answer Question RBI was established under the:-

Correct Answer RBI Act

Your Answer RBI Act

Multiple Choice Multiple Answer Question Duties of an International Banking unit cover :-

Correct Answer Handling foreign currency , Handling Doc. credits , Grantinglines of Credit

Your Answer Handling foreign currency , Handling Doc. credits , Grantinglines of Credit

True/FalseQuestion The currency notes issued by RBI are legal tender everywhere

in India without any limit.



Correct Answer True

Your Answer False

Multiple Choice Multiple Answer Question Post Offices are popular for mobilizing small savings of the

public due to :-Correct Answer Wide network , Tax concessions , Saftey of funds

Your Answer Low returns , Wide network , Saftey of funds

Multiple Choice Multiple Answer Question Bonds issued by institutions through SPVs to execute

infrastructure projects are :-Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam

LtdYour Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam

Ltd





Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional/Sectoral planning

Your Answer Benchmark Surveys , Pre-feasibility studies , Regional/Sectoral planning


Correct Answer Handling foreign currency , Handling Doc. credits , Grantinglines of Credit

Your Answer Handling foreign currency , Handling Doc. credits , Grantinglines of Credit

Select The BlankQuestion The ________ is the apex institution in the field of foreign

trade in India.Correct Answer EXIM bank

Your Answer FEDAI



Your Answer True

True/FalseQuestion NABARD does not provide Refinance for stocking &

distribution of Chemical Fertilisers.Correct Answer False

Your Answer False



Your Answer Power

True/FalseQuestion NABARD is an apex institution in the field of Integrated Rural

Development.



Correct Answer True

Your Answer False

Match The Following


Insurance of allemployees of a Firm

Group Insurance Group Insurance

Premium Throughout Life Whole Life Whole Life

Fixed Period Insurance Endowment Endowment

Insurance of oceanCargo Marine Insurance Marine Insurance

Select The BlankQuestion DFIs are the second largest issuer of ________ after the

Govt and Sovereign bodies.Correct Answer Debt instruments


True/FalseQuestion Mortgage Loans are loans against property.

Correct Answer True

Your Answer True



Your Answer Revocable

Multiple Choice Single Answer Question Liabilities of Insurance Cos are mostly :-

Correct Answer Long term

Your Answer Long term


deposits at ________% interest.



Correct Answer 0

Your Answer 0.05

Multiple Choice Single Answer Question Bills Rediscounting Scheme of IDBI was introduced in the

year :-Correct Answer 1965

Your Answer 1975

Multiple Choice Single Answer Question DFHI was incorporated under the :-

Correct Answer Companies Act, 1956

Your Answer Banking Regulation Act,1949







Multiple Choice Single Answer Question The first development Bank of India, established in 1948 was

:-Correct Answer IFCI

Your Answer IFCI



Your Answer True




Question Under Project Finance Scheme IDBI provides assistance for :-




Correct Answer True

Your Answer True

Select The Blank

Question The ________ does not collect Savings from the Public.








Your Answer Over three years

Multiple Choice Multiple Answer Question hich of the following statements are not prepared on a daily

basis in branch?Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer Audited Balance Sheet , Trial Balance , P/L statement


Correct Answer True

Your Answer True





Your Answer False

Multiple Choice Single Answer Question Treasury Bills are issued by the :-

Correct Answer RBI

Your Answer RBI

Multiple Choice Single Answer Question Account where lump sum investment is made for specific

period is :-Correct Answer Term Deposit account

Your Answer Term Deposit account

Multiple Choice Single Answer Question The apex institution in the field of foreign trade in India is :-


Your Answer EXIM Bank

Multiple Choice Multiple Answer Question Basic Life insurance policies include :-

Correct Answer Term insurance , Annuity contracts , Pension plans

Your Answer Term insurance , Annuity contracts , Pension plans

Select The BlankQuestion In addition to IFCI and ________ the Soft Loan Scheme for modernisation is also undertaken by IDBI.


Your Answer ICICI


Correct Answer Merchant Banking activities , Lease or hire purchase finance ,



Consultancy & managerial services

Your Answer Lease or hire purchase finance , Consultancy & managerial

services , Rural credit activities

Select The BlankQuestion Syndication of Loans Globally does not involve any funds as

it is ________ activity.Correct Answer Non-fund based

Your Answer Non-fund based





Correct Answer SDR

Your Answer EFF






Your Answer Global Banking

Select The BlankQuestion The extent of powers enjoyed by a branch depends on the

size of its ________.Correct Answer Business







Match The Following


Inter Bank Call MoneyMarkets

BRs, Call MoneyReceipts

Currencies

Money MarketInstuments

CP, CD ,T- Bills CP, CD ,T- Bills

Capital MarketInstruments

Shares Shares

Debt Market Instruments GOI Securities ,Bonds Shares

Select The BlankQuestion 55% of HUDCO loans are earmarked for________& low

income groups.Correct Answer Weaker sections

Your Answer Weaker sections



Your Answer False

Multiple Choice Multiple Answer Question The financial Assistance provided by the IMF enables

member countries to :-

Correct Answer Rebuild resources , Stabilise currencies , Pay for imports


Select The BlankQuestion The repayment holiday period is also known as ________

period.Correct Answer Moratorium

Your Answer Moratorium



Multiple Choice Single Answer Question A non-scheduled bank does not deal in :-

Correct Answer Foreign Exchange

Your Answer Foreign Exchange



Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Public sector Companies





True/False

Question NABARD does not provide Refinance for stocking & distributionof Chemical Fertilisers.


Your Answer False






Your Answer IFCI

Select The Blank



Question DFIs are the second largest issuer of ________ after the Govtand Sovereign bodies.

Correct Answer Debt instruments



Correct Answer True

Your Answer True

True/False

Question State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer True



Your Answer Merchant Banking activities , Lease or hire purchase finance ,

Consultancy & managerial services



Your Answer False



Your Answer False








Your Answer True



Your Answer 0









Your Answer Power











Your Answer ICICI


Correct Answer True

Your Answer True



Your Answer Paid-up

Select The BlankQuestion The term ________ refers to the act of a bank extending finance

to the seller against a letter of credit.Correct Answer Negotiation



Insurance.Correct Answer True

Your Answer True



Your Answer PRGF








Your Answer Size

Multiple Choice Multiple Answer Question The main objective of ICICI was :-

Correct Answer To augment export finance in India , To channelise WorldBank's funds to industries in India , To help in building up aCapital Market in India









Correct Answer True

Your Answer True







Correct Answer True

Your Answer False



Your Answer True







Match The Following



IBRD IBRD


IMF IMF




Correct Answer IDBI

Your Answer IDBI





Your Answer 1965






Your Answer UNO







Multiple Choice Single Answer Question IDBI introduced Automatic Refinance Scheme in the year :-

Correct Answer 1978

Your Answer 1975


in India.



Correct Answer EXIM bank





Match The Following



Fisheries Fisheries












Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning

Your Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning


Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit

Your Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit

Select The BlankQuestion The ________ is the apex institution in the field of foreign trade in India.




Your Answer FEDAI



Your Answer True

True/FalseQuestion NABARD does not provide Refinance for stocking & distribution of

Chemical Fertilisers.


Your Answer False



Your Answer Power

True/FalseQuestion NABARD is an apex institution in the field of Integrated RuralDevelopment.

Correct Answer True

Your Answer False

Match The Following


Insurance of all employees of a Firm




Insurance of ocean Cargo Marine Insurance Marine Insurance

Select The BlankQuestion DFIs are the second largest issuer of ________ after the Govt and

Sovereign bodies.






Correct Answer True

Your Answer True

Select The BlankQuestion An ________ letter of credit cannot be canceled by the buyer without the

seller's consent.

Correct Answer Irrevocable





Select The BlankQuestion As a banker to the Government, RBI accepts Government deposits at

________% interest.Correct Answer 0

Your Answer 0.05

Multiple Choice Single Answer Question Bills Rediscounting Scheme of IDBI was introduced in the year :-

Correct Answer 1965

Your Answer 1975



Your Answer Banking Regulation Act,1949




Question The underdeveloped markets are characterised by :-







Question The first development Bank of India, established in 1948 was :-

Correct Answer IFCI

Your Answer IFCI

True/FalseQuestion Non bank financial institutions undertake fund and non fund based

activities.Correct Answer True

Your Answer True





Correct Answer True

Your Answer True












Multiple Choice Multiple Answer Question Which of the following statements are not prepared on a daily basis in

branch?Correct Answer Cash Book , Trial Balance , P/L statement



Correct Answer True

Your Answer True

True/FalseQuestion Small Savings are source of Capital Receipts for the Government.

Correct Answer True

Your Answer False


Correct Answer RBI

Your Answer RBI

Multiple Choice Single Answer Question Account where lump sum investment is made for specific period is :-

Correct Answer Term Deposit account










Select The BlankQuestion In addition to IFCI and ________ the Soft Loan Scheme for modernisation

is also undertaken by IDBI.Correct Answer ICICI

Your Answer ICICI


Correct Answer Merchant Banking activities , Lease or hire purchase finance , Consultancy& managerial services

Your Answer Lease or hire purchase finance , Consultancy & managerial services ,Rural credit activities

Select The BlankQuestion Syndication of Loans Globally does not involve any funds as it is ________

activity.Correct Answer Non-fund based





Select The BlankQuestion ________ is merely an asset created out of book entries.



Correct Answer SDR

Your Answer EFF




Multiple Choice Single Answer Question The type of banking involving a small number of Large Customers

viz.Corporates & multinationals is :-

Correct Answer Wholesale Banking


Select The BlankQuestion The extent of powers enjoyed by a branch depends on the size of its

________.Correct Answer Business





Match The Following


Inter Bank Call Money

Markets

BRs, Call Money Receipts Currencies

Money Market Instuments CP, CD ,T- Bills CP, CD ,T- Bills

Capital Market Instruments Shares Shares


Select The BlankQuestion 55% of HUDCO loans are earmarked for________& low income groups.



Correct Answer Weaker sections


True/FalseQuestion Banks authorised to deal in foreign exchange are known as Authorised

Dealers.Correct Answer False

Your Answer False

Multiple Choice Multiple Answer Question The financial Assistance provided by the IMF enables member countries to

:-

Correct Answer Rebuild resources , Stabilise currencies , Pay for imports


Select The BlankQuestion The repayment holiday period is also known as ________ period.

Correct Answer Moratorium











Select The BlankQuestion The Shipping Credit and Investment Company of India Ltd. has

changed its name to ________ effective from October 1992.Correct Answer SCICI Ltd


Multiple Choice Multiple Answer Question IFC provides financial assistance :-

Correct Answer Through loans , Through purchase of shares , For economicdevelopment

Your Answer Largely as aid , Through loans






Your Answer Straight coupon bonds , Inflation linked bonds , Zero couponbonds

Multiple Choice Multiple Answer Question R B I issues currency notes against the security of:-





Your Answer Wholesale Banking




Development.

Correct Answer True

Your Answer True

Select The BlankQuestion The ________ are buy and hold investors and almost never

trade on their investments.Correct Answer Provident Funds

Your Answer Mutual Funds






Assigning it in the open marketYour Answer Surrendering the policy , Converting it into paid up policy ,Assigning it in the open market


Correct Answer By lending at 0% interest. , For periods up to ten years , Byborrowing from IBRD



Question Financial institutions deal in :-









Correct Answer RBI

Your Answer RBI


Correct Answer True

Your Answer True


Correct Answer True

Your Answer True









Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds


is contained in :-



Correct Answer SGL pass book





Multiple Choice Single Answer Question SIDCs & SIICs are under the control of :-

Correct Answer State Governments

Your Answer State Governments



Your Answer True

Match The Following


Advances Loans/cash credits Loans/cash credits

Cash withdrawal facility ATM ATM

Remittances MT/DD/TT/EFT MT/DD/TT/EFT

Government business Collection of taxes Collection of taxes




Select The BlankQuestion The CRAFICARD recommended the establishment of

_______.



Correct Answer NABARD

Your Answer NABARD

Multiple Choice Multiple Answer Question he objective NEF Scheme of SIDBI is to provide equity support

to :-Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing

units in tiny & small scale sector Your Answer New Units in tiny Sector , New Units in Small Sector , Existing

units in tiny & small scale sector

Multiple Choice Single Answer Question Which of the following institution was set up as a subsidy of RBI

in 1964?Correct Answer IDBI

Your Answer IDBI

Select The BlankQuestion Kisan Vikas Patra are issued through ________.

Correct Answer Post Offices

Your Answer Post Offices



Your Answer Companies Act, 1956

Multiple Choice Single Answer Question Which one of the following is not a deposit account?

Correct Answer Cash Credit account

Your Answer Cash Certificate

True/FalseQuestion CP is a usance promissory note hence it can be negotiated by

endorsement & delivery.Correct Answer True

Your Answer False



Select The BlankQuestion The ________ meet the long and medium term credit needs of

agriculture.

Correct Answer Land Development Banks

Your Answer Regional Rural Banks





Correct Answer True

Your Answer False



Your Answer False

Multiple Choice Multiple Answer Question Soft Loan Scheme for modernisation is provided by :-

Correct Answer IFCI , ICICI , SIDBI

Your Answer ICICI



Your Answer True

Match The Following



IFCI IFCI








Your Answer True

Multiple Choice Single Answer Question Instruments issued by DFIs and Banks carry :-

Correct Answer Highest credit ratings

Your Answer Highest credit ratings


Correct Answer SIDF

Your Answer SIDF

True/FalseQuestion Amongst others, ICICI also provided long and medium term

loans or equity finance.Correct Answer True

Your Answer True

Select The Blank

Question Interest on advances is generally calculated on ________ products.Correct Answer Daily

Your Answer Fortnightly

Select The BlankQuestion The ________ has been accredited by RBI as a Primary Dealer

in Governemt Securities.Correct Answer STCI



Your Answer GIC


Correct Answer SDR

Your Answer SDR

Multiple Choice Single Answer Question Development Financial Institutions provide finance to the needy

Correct Answer Corporates & govt. institutions

Your Answer Corporates & govt. institutions


True/FalseQuestion NABARD provides short term refinance for procurement

activities also.Correct Answer True

Your Answer True


Correct Answer Credit Card Business , International remittances , Travellers'Cheques

Your Answer Credit Card Business , International remittances , Travellers'Cheques



Your Answer False

Multiple Choice Single Answer Question IMF articles were amended in 1978 to legalise the :-

Correct Answer Floating exchange rates

Your Answer Special drawing rights



Select The BlankQuestion Syndication involves ________ sanction.


Your Answer In principle




Match The Following


CRR Primary reserverequirement

Prevention of speculativehoarding in

Bankers Bank Controlling the reserves of commercial banks

Controlling the reserves of commercial banks

Exchange control FEMA FEMA

OMO Government securities Secondary reserve

requirement

Multiple Choice Multiple Answer Question The prominent Bond issuing PSU are :-

Correct Answer MTNL , NTPC , SAIL

Your Answer MTNL , NTPC , SAIL



Your Answer GIC









Match The Following


Money MarketInstruments

CP, T- Bills CP, T- Bills

Negotaible Instruments Bills of exchange

,Cheques

Bills of exchange

,Cheques

GOI securities ZCB, ILBonds ZCB, ILBonds

Long Term Debtinstruments

PSU Bonds PSU Bonds

Select The BlankQuestion NABARD took over the functions of ACD, RPCC of RBI &

_______.Correct Answer ARDC

Your Answer ARDC





Correct Answer True

Your Answer True



Your Answer False



True/FalseQuestion Under open market operation RBI conducts buying /selling

shares/debentures of blue chip companies.Correct Answer False

Your Answer False

Multiple Choice Single Answer Question Initial Quantum of resources of IMF were contributed by

members according to :-Correct Answer Quotas fixed for members

Your Answer Quotas fixed for members


Correct Answer RBI

Your Answer RBI

Multiple Choice Multiple Answer Question ECGC Board comprises of Directors representing :-

Correct Answer Government , Banking/Insurance , Trade/Industry

Your Answer Government


is contained in :-Correct Answer SGL pass book


Multiple Choice Multiple Answer Question Which of the following statements are not prepared on a dailybasis in branch?

Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer Cash Book , Trial Balance , P/L statement

Multiple Choice Single Answer Question Size of the Quota depended upon :-

Correct Answer GNP





Multiple Choice Multiple Answer Question Functions of NIDHIs include :-

Correct Answer Accepting Deposits , Granting loans , Encourage thrift

Your Answer Accepting Deposits , Granting loans , Speculation

Multiple Choice Multiple Answer Question R B I conducts monetary control by way of O M O in :-


Your Answer Treasury bills , State /central Government Securities

Multiple Choice Single Answer Question The foreign currency account maintained by an authorised

dealer with its correspondent abroad is :-Correct Answer Nostro Account

Your Answer Nostro Account

Select The BlankQuestion Mutual Funds provide the benefits of ________.

Correct Answer Portfolio management

Your Answer Bulk investment




Multiple Choice Single Answer Question The primary sources of IMF resources are :-

Correct Answer Quotas

Your Answer Quotas




Question The unorganised financial system comprises of :-



Multiple Choice Single Answer Question The first long term industrial financing corporation set up in the

country was : -Correct Answer IFCI

Your Answer IFCI

Select The Blank

Question The HDFC was set up in 1977 by the ________.


Your Answer ICICI

Multiple Choice Single Answer Question One of the leading All India FI is :-

Correct Answer SIDBI

Your Answer LIC



Your Answer True


Correct Answer True

Your Answer False



Your Answer RBI Act



Question Which of the following services is not provided by Commercialbanks?

Correct Answer Deposit Insurance




Your Answer IFCI

Select The Blank

Question DFIs are the second largest issuer of ________ after the Govtand Sovereign bodies.




Correct Answer True

Your Answer True

True/FalseQuestion State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer True






Your Answer False





Your Answer False






Your Answer True


deposits at ________% interest.

Correct Answer 0Your Answer 0




Multiple Choice Multiple Answer Question Other than Tourism, International funds remittances comprise of :-

Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty






Your Answer Power









Your Answer ICICI


Correct Answer True

Your Answer True



Your Answer Paid-up







Insurance.

Correct Answer True

Your Answer True



Your Answer PRGF


Question The general insurance business can be :-





Your Answer Size


Correct Answer To augment export finance in India , To channelise WorldBank's funds to industries in India , To help in building up aCapital Market in India



Question SIDCs & SIICs give loans ,guarantees & :-









Correct Answer True

Your Answer True





Correct Answer True

Your Answer False



Your Answer True







Match The Following





IBRD IBRD


IMF IMF




Correct Answer IDBI

Your Answer IDBI



Your Answer 1965






Your Answer UNO







Question Functions of R.O. of a bank include :-




Correct Answer 1978

Your Answer 1975

Select The Blank

Question The ________ is the apex institution in the field of foreign tradein India.






Match The Following



Fisheries Fisheries














Select The BlankQuestion The Shipping Credit and Investment Company of India Ltd. has changed its name to

________ effective from October 1992.

Correct Answer SCICI LtdYour Answer SCICI Ltd

Select The BlankQuestion AFC's membership consists of commercial, cooperative banks and DFIs including

________.Correct Answer EXIM bankYour Answer EXIM bank

Multiple Choice Single Answer Question Financial institutions deal in :-Correct Answer Financial assetsYour Answer Financial assets

Multiple Choice Single Answer Question The lender of the last resort to the market is the :-Correct Answer RBIYour Answer RBI

Select The BlankQuestion One of the objectives of NHB is to augment the ________ resources for the housing

sector.Correct Answer FinancialYour Answer Financial


Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to tenyears


Multiple Choice Single Answer Question A company issues CP to save on :-Correct Answer Interest costYour Answer Interest cost

True/FalseQuestion PFC has been persuading State Governments restructuring of their power sector to

make them viable.Correct Answer True

Your Answer True

Multiple Choice Single Answer Question The ultimate source of money in India is:-Correct Answer RBI

Your Answer RBI

True/FalseQuestion The SFCs also borrow from SIDBI & IDBI.Correct Answer False

Your Answer True




Question RBI was established under the:-Correct Answer RBI Act

Your Answer RBI Act

Multiple Choice Multiple Answer Question The major area of AFC's specialisation included Crop Production as well as:-

Correct Answer Crop Planning , Plant Protection , Farm ManagementYour Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer Question A member's IMF Quota determines its :-Correct Answer Financial commitment , Voting power , Drawing power


Select The BlankQuestion Period of Holiday Insurance is ________.Correct Answer Six months or less

Your Answer Three years

Multiple Choice Single Answer Question The underdeveloped markets are characterised by :-Correct Answer Government regulation and control


Multiple Choice Single Answer Question Cetificate of deposit are issued by :-Correct Answer BanksYour Answer Banks

True/False

Question The bids for T-Bills are on price/interest basis.Correct Answer TrueYour Answer True

Multiple Choice Single Answer Question The unorganised financial system includes :-Correct Answer Indigenous bankersYour Answer Indigenous bankers

Multiple Choice Single Answer Question Long term debt instruments have a maturity of :-Correct Answer Over one year Your Answer Over one year

Multiple Choice Multiple Answer Question The general insurance business can be :-Correct Answer Marine insurance , Fire insurance , MiscellaneousYour Answer Fire insurance , Miscellaneous , Marine insurance

True/FalseQuestion NABARD does not provide Refinance for stocking & distribution of Chemical

Fertilisers.Correct Answer False

Your Answer False




Question The unorganised financial system comprises of :-Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers

Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/FalseQuestion NABARD is an apex institution in the field of Integrated Rural Development.

Correct Answer TrueYour Answer True

Select The BlankQuestion 55% of HUDCO loans are earmarked for________& low income groups.Correct Answer Weaker sections


Multiple Choice Single Answer Question Development Financial institutions include :-Correct Answer State financial institutions


Multiple Choice Single Answer Question Money Markets Instruments have a maturity of less than :-Correct Answer One year

Your Answer One year

Select The BlankQuestion The price in financial markets is known as ________.Correct Answer Rate of interestYour Answer Rate of interest

Match The Following


Development financial institutions IFCI IFCI





Correct Answer ICICIYour Answer ICICI

Multiple Choice Single Answer Question Certificate of deposit is a :-

Correct Answer Usance promissory noteYour Answer Term Deposit Receipt









Question A current account where the customer can withdraw more than the balance is :-Correct Answer OverdraftYour Answer Overdraft

Multiple Choice Multiple Answer Question The loans of finance companies are generally :-

Correct Answer At high interest , Unsecured , Based on borrowers worthYour Answer At high interest , Unsecured , Based on borrowers worth


Correct Answer SIDFYour Answer SIDF

True/FalseQuestion Issuance of CD attracts reserve requirements.

Correct Answer FalseYour Answer False

True/FalseQuestion Banks issue Guarantees on behalf of their clients.Correct Answer True

Your Answer True

Match The FollowingQuestion Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives

True/False

Question Under MIGA the World bank offers various forms of Political Insurance.Correct Answer TrueYour Answer True


Question In case of a Life policy it is possible to withdraw from the obligation to contributefurther premium by :-

Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in theopen market

Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the

open market




Question The organised financial system includes :-Correct Answer Commercial banks


Select The BlankQuestion The term ________ refers to the act of a bank extending finance to the seller against

a letter of credit.Correct Answer NegotiationYour Answer Negotiation


Correct Answer Liaison with RBI , Evolve Policies , Vigilance & ControlYour Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer Question Bonds issued by institutions through SPVs to execute infrastructure projects are : -

Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam LtdYour Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd


Correct Answer Premium collectedYour Answer Premium collected

Multiple Choice Multiple Answer Question Treasuries could be either those of the :-Correct Answer PSUs , Private Sector Cos. , Govt.bodies

Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer Question Under Project Finance Scheme IDBI provides assistance for :-Correct Answer New Projects , Renovation , Modernisation

Your Answer New Projects , Renovation , ModernisationLIST OF ATTEMPTED QUESTIONS AND ANSWERS


________ effective from October 1992.Correct Answer SCICI LtdYour Answer SCICI Ltd

Select The Blank

Question AFC's membership consists of commercial, cooperative banks and DFIs including ________.

Correct Answer EXIM bankYour Answer EXIM bank


Multiple Choice Single Answer Question The lender of the last resort to the market is the :-Correct Answer RBI



Question The underdeveloped markets are characterised by :-Correct Answer Government regulation and control


Multiple Choice Single Answer Question Cetificate of deposit are issued by :-

Correct Answer BanksYour Answer Banks

True/FalseQuestion The bids for T-Bills are on price/interest basis.Correct Answer True

Your Answer True

Multiple Choice Single Answer Question The unorganised financial system includes :-Correct Answer Indigenous bankers


Multiple Choice Single Answer Question Long term debt instruments have a maturity of :-Correct Answer Over one year


Multiple Choice Multiple Answer Question The general insurance business can be :-Correct Answer Marine insurance , Fire insurance , MiscellaneousYour Answer Fire insurance , Miscellaneous , Marine insurance

True/False

Question NABARD does not provide Refinance for stocking & distribution of ChemicalFertilisers.


Your Answer False

Multiple Choice Multiple Answer Question The unorganised financial system comprises of :-Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers


True/FalseQuestion NABARD is an apex institution in the field of Integrated Rural Development.Correct Answer True

Your Answer True

Select The BlankQuestion 55% of HUDCO loans are earmarked for________& low income groups.Correct Answer Weaker sections


Multiple Choice Single Answer Question Development Financial institutions include :-Correct Answer State financial institutions





Question Money Markets Instruments have a maturity of less than :-Correct Answer One year

Your Answer One year


Correct Answer Rate of interestYour Answer Rate of interest






Select The Blank

Question The HDFC was set up in 1977 by the ________.Correct Answer ICICIYour Answer ICICI






Correct Answer CorporatesYour Answer Corporates

Multiple Choice Single Answer Question A current account where the customer can withdraw more than the balance is :-

Correct Answer OverdraftYour Answer Overdraft









Your Answer False

True/False

Question Banks issue Guarantees on behalf of their clients.Correct Answer TrueYour Answer True






True/FalseQuestion Under MIGA the World bank offers various forms of Political Insurance.Correct Answer TrueYour Answer True


Question In case of a Life policy it is possible to withdraw from the obligation to contributefurther premium by :-

Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in theopen market

Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the

open market

Multiple Choice Single Answer Question The organised financial system includes :-Correct Answer Commercial banks



a letter of credit.

Correct Answer NegotiationYour Answer Negotiation


Correct Answer Liaison with RBI , Evolve Policies , Vigilance & ControlYour Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-

Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam LtdYour Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd







Question Treasuries could be either those of the :-Correct Answer PSUs , Private Sector Cos. , Govt.bodiesYour Answer PSUs , Private Sector Cos. , Govt.bodies


Correct Answer New Projects , Renovation , ModernisationYour Answer New Projects , Renovation , Modernisation


Select The Blank Question The Shipping Credit and Investment Company of India Ltd. has changed its

name to ________ effective from October 1992.


Select The Blank Question AFC's membership consists of commercial, cooperative banks and DFIs

including ________.Correct Answer EXIM bank


Multiple Choice Single Answer Question Financial institutions deal in :-Correct Answer Financial assets


Multiple Choice Single Answer Question The lender of the last resort to the market! is the :-Correct Answer RBI

Your Answer RBI

Select The Blank Question One of the objectives of NHB is to augment the ________ resources for the

housing sector.Correct Answer Financial

Your Answer Financial


Question IDA lends to poor countries :-Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up

to ten years



Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up toten years


Question A company issues CP to save on :-Correct Answer Interest costYour Answer Interest cost

True/False

Question PFC has been persuading State Governments restructuring of their power sector to make them viable.



Correct Answer RBIYour Answer RBI


Correct Answer FalseYour Answer True


Question RBI was established under the:-Correct Answer RBI Act

Your Answer RBI Act


Question The major area of AFC's specialisation included Crop Production as well a!s:-



Question A member's IMF Quota determines its :-Correct Answer Financial commitment , Voting power , Drawing power Your Answer Financial commitment , Voting power , Drawing power

Select The Blank

Question Period of Holiday Insurance is ________.Correct Answer Six months or lessYour Answer Three years




Question The underdeveloped markets are characterised by :-Correct Answer Government regulation and control

Your Answer Government reg! ulation and control

Multiple Choice Single Answer Question Cetificate of deposit are issued by :-Correct Answer Banks

Your Answer Banks




Correct Answer Indigenous bankersYour Answer Indigenous bankers


Correct Answer Over one year Your Answer Over one year


can be :-

Correct Answer Marine insurance , Fire insurance , MiscellaneousYour Answer Fire insurance , Miscellaneous , Marine insurance


Chemical Fertilisers.Correct Answer FalseYour Answer False

Multiple Choice Multiple Answer Question The unorganised financial system comprises of :-Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers



&nbs! p; Correct Answer True

Your Answer True



Select The Blank Question 55% of HUDCO loans are earmarked for________& low income groups.

Correct Answer Weaker sectionsYour Answer Weaker sections


Correct Answer State financial institutionsYour Answer State financial institutions


Question Money Markets Instruments have a maturity of less than :-Correct Answer One year Your Answer One year

Select The Blank

Question The price in financial markets is known as ________.Correct Answer &n! bsp; Rate of interest


Match The Following






Select The Blank Question The HDFC was set up in 1977 by the ________.Correct Answer ICICI

Your Answer ICICI








Question Commercial Papers are issued by :-Correct Answer Corporates



Question A current account where the customer can withdraw more than the balance is:-

Correct Answer OverdraftYour Answer Overdraft




Question For a focus on the SSI Sector in 1986 IDBI created :-&n! bsp; Correct Answer SIDF

Your Answer SIDF

True/False

Question Issuance of CD attracts reserve requirements.Correct Answer False

Your Answer False

True/FalseQuestion Banks issue Guarantees on behalf of their clients.Correct Answer True

Your Answer True






True/FalseQuestion Under MIGA the World bank offers various forms of Political Insurance.




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Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.LIST OF ATTEMPTED QUESTIONS AND ANSWERS


________ effective from October 1992.Correct Answer SCICI Ltd



________.

Correct Answer EXIM bankYour Answer EXIM bank


Question Financial institutions deal in :-Correct Answer Financial assetsYour Answer Financial assets

Multiple Choice Single Answer Question The lender of the last resort to the market is the :-



sector.

Correct Answer FinancialYour Answer Financial


Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to tenyears



Question A company issues CP to save on :-Correct Answer Interest costYour Answer Interest cost







Question The general insurance business can be :-Correct Answer Marine insurance , Fire insurance , MiscellaneousYour Answer Fire insurance , Miscellaneous , Marine insurance


Fertilisers.Correct Answer FalseYour Answer False


Question The unorganised financial system comprises of :-Correct Answer Money lenders , Indigenous bankers , Lending pawn brokersYour Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False

Question NABARD is an apex institution in the field of Integrated Rural Development.Correct Answer TrueYour Answer True


Correct Answer Weaker sectionsYour Answer Weaker sections



Multiple Choice Single Answer Question Money Markets Instruments have a maturity of less than :-

Correct Answer One year Your Answer One year










Select The Blank

Question The HDFC was set up in 1977 by the ________.Correct Answer ICICIYour Answer ICICI

Multiple Choice Single Answer Question Certificate of deposit is a :-Correct Answer Usance promissory noteYour Answer Term Deposit Receipt

True/FalseQuestion A Bill of Exchange is negotiable.Correct Answer TrueYour Answer True

Multiple Choice Single Answer Question Commercial Papers are issued by :-Correct Answer CorporatesYour Answer Corporates

Multiple Choice Single Answer Question A current account where the customer can withdraw more than the balance is :-Correct Answer OverdraftYour Answer Overdraft


Question The loans of finance companies are generally :-Correct Answer At high interest , Unsecured , Based on borrowers worth

Your Answer At high interest , Unsecured , Based on borrowers worth


Question For a focus on the SSI Sector in 1986 IDBI created :-Correct Answer SIDFYour Answer SIDF

True/False

Question Issuance of CD attracts reserve requirements.Correct Answer FalseYour Answer False

True/False

Question Banks issue Guarantees on behalf of their clients.Correct Answer TrueYour Answer True

Match The Following








True/FalseQuestion Under MIGA the World bank offers various forms of Political Insurance.Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question In case of a Life policy it is possible to withdraw from the obligation to contribute

further premium by :-Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the

open marketYour Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the

open market


Question The organised financial system includes :-Correct Answer Commercial banksYour Answer Commercial banks

Select The Blank

Question The term ________ refers to the act of a bank extending finance to the seller againsta letter of credit.



Question Functions of a Bank's H.O. include:-Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control



Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam LtdYour Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank

Question GIC raises funds to meet claims from ________.Correct Answer Premium collectedYour Answer Premium collected




Question Under Project Finance Scheme IDBI provides assistance for :-Correct Answer New Projects , Renovation , ModernisationYour Answer New Projects , Renovation , Modernisation



Financial Institution and Banking

Topic PageNo

organised sector 2

financial services 2

Indian financial system 3

commercial banks 4

development financial institutions 5

insurance companies 5

other public sector financial institutions 5

post office savings 5

mutual funds 5

non banking finanical institutions 6

Reserve bank of India 9

functions of RBI 9

banker to the government 10

bankers bank 10

supervising authority 10

exchange control authority 10

promoter of financial system 11

fiscal and monetary policy 12

open market operations 12

developmental financial institutions 17

industrial finance corporation of India 17

Industrial development bank of india - idbi 18industrial credit and investment corporation of india Ltd - icici 19

irbi 20

sfcs 20

sidc and siics 20

state small industries development corporation (SSIDC) 21

power finance corporation (PFC) 21

financial services offered by the corporation 21

term loans 21

lease financing 22

direct discounting of bills 22

guarantee services 22loan syndication 22

short term loan 22

institutional development services 22

utility development plans 23

financial assistance for power sector studies 23

reform and restructuring related studies 23

reform and restructuring of SEBs 23

OFAP 23

export import bank of india 24

national bank of agriculture and rural development 24



genesis of NABARD 24

ARC 24

GOI 24

ACD 24

CRAFICARD 24

types of refinance facilities 26

interest rates 26

production credits 28

financing weavers 28

OSAO 29

refinance for marketing of crops 29

other refinance facilities 30

long term loans to state governments 30

investment credit ( medium and long term) refinance 31

shipping credit and investment company of India (SCICI) 33principal activities 33

agricultural finance consultancy ltd (AFC) 34

area of specialisation 36

surveys and studies 38

National co-operative development corporation (NCDC) 38

finance and financing 39

procedure of santion / disbursal of assistance 40

promotional and development role 40

marketing 40

agricultural inputs 40

agro-processing industries 41storage and cold storage 41

program for weaker sections 41

consumer business 41

area based integrated co-operative development project 42

national housing bank (NHB) 42

housing and urban development corporation (HUDCO) 44

housing development finance corporation (HDFC) 44

land development banks 45

banking sector 49

retail banking 49

cash credit 50

safe custody services for safe keeping of important documents 50

acceptance of deposits from non resident indians 51

difference between retail banking and wholesale banking 51

global banking 51

scheduled bank in india 52

commercial bank and cooperative bank 52

public sector banks 52

private sector banks 52

bank accounts 53

deposit account 53



lump sum investment 54

periodic investment 54

cash credit 54

loan syndication 54

repayment period 54

bill 55

discount 55

remittance 55

letter of credit 55

bank guarantee 56

negotiation 56

cash reserve ratio 56

statutory reserve ratio 57

note pertaining to reserve ratio 57

clearing operation 57daily product basis 57

monthly product basis 58

repayment holiday 58

credit instruments 59

negotiable instruments 59

acceptance 59

credit report 59

syndication 59

custodial services 60

security 60

foreign exchange 60securitisation 60

international banking 60

international trade 61

tourism 61

remittance of funds from one place to another place besides tourism 61

syndication of loans global for corporate houses 61

foreign exchange management 62

profile of a bank 62

branch banking 62

different layers of banking 62

duties of an international banking department 63

exchange operations 63

administrative functions in a bank 63

administrative units 64

banking business 65

Deposit insurance and credit guarantee corporation (DICGC) 66

export credit guarantee corporation (ECGC) 67

indian money market 73

instrument 73

comercial paper 74

certificates of deposit 75



treasury bills 75

short term debentures 75

bill of exchange 75

long term debt instruments 76

government of India dated securities (GOISEC) 76

inflation linked bonds 77

zero coupon bonds 77

state government securities (state loans) 78

public sector undertaking bonds (PSU Bonds) 78

bonds of public financial institutions (PFI) 78

corporate debentures 79

Pass through certificates (PTC) 79

issuers 79

government of India and other sovereign bodies 80

banks and development financial institutions 80public sector undertaking (PSU ) 81

private sector companies 81

government owned or quasi governement non corporate entities 82

investors 82

banks 83


provident funds 84

mutual funds 86

trusts 86

corporate treasuries 87

foreign institutional investors 87securities trading corporation of india (STCI) 88

discount and finance house of india 88

non banking financial intermediaries 93

LIC 93

general nature of insurance companies 93

instroduction of Life Insurance corporations 93

types and structure of insurance plans 94

general insurance corporation 96

unit trust of india 98

provident / pension funds 99

post offices 99

Non bank financial companies (NBFC) 99

investment companies 100

loan companies 102

chit funds 102

NIDHIS 103

hire purchase finance companies 104

equipment leasing finance companies 104

international monetary fund (IMF) 109

quotas 109

concessional and non concessional lending 113



poverty reduction and growth facility (PRGF) 113

stand by arrangments (SBA) 114

extended fund facility (EFF) 114

supplement reserve facility (SRF) 114

contingent credit lines (CCL) 114

compensatory financing facility (CFF) 114

emergency assistance 114

special drawing rights 114

the international bank for reconstruction and development 115

world bank 115

international finance corporation 115

international development assiciation (IDA) 116

the bank for international settlements 116

regional development agencies 116

RBI 119non performing assets 120

out of order status 121

overdue 121

income recognition 121

reversal of income 122

appropriation of recovery in NPA 122

NPA 122

sub standard Assets 123

subtful assets 124

loss assets 124

account with temporary deficiancies 124upgradation of loan accounts classified as NPA 125

account regularised near about the balance sheet date 125

agricultural advances 126

government guaranteed advances 128

restructuring rescheduling of loans 128

upgradation of restructured accounts 130

corporate debt restructuring (CDR systems) 131

CDR 131

stand still clause 138

category 2 CDR system 139

projects under implementation 142

assest classification 142


provisioning 145

availability of security / net worth of borrower / guarantor 145

take-out finance 145

post shipment supplier credit 145

export project finance 146

advances under rehabiliation approved by BIFR/TLI 146

provisioning norms general 146




leased assets 148

advances 150

advances covered by CGTSI guarantee 151


reserve for exchange rate fluctuations account (RERFA) 152

country risk 153

securitisation company (SC) / reconstruction company (RC) 154

writing off of NPA 155

direct finance to farmers for agricultural purposes 156

purchase of agricultural implements and machinery 156

development of irrigation potential through 156

lending to priority sector 158

priority sector advances 161


indirect finance to agriculture 163small scale and ancillary industries 166

tiny enterprises 166

small scale service and business enterprises(SSSBE) 166

industrial estates 167

KVI sector 167

small road and water transport operators (SRWTO) 167

retail trade 168

small business 168

professional and self emplyed persons 168

state sponsored organisations for scheduled castes / scheduled tribes 169

education 170housing 170

compsumption loans 170

loans to self help groups (SHG)/NGO/MICROEDIT 170

food and agro based processing sector 171

software industry 171

venture capital 171

investments in special bonds 173

HUDCO 174

NSIC 174

NHB 174

lines of credit 174

bills rediscounting 175

deposits in rural infrastructure development (RIDF) 175

leasing and hire purchase 175

targets for priority sector lending by scheduled commercial banks 177

scheduled commercial banks excluding foreign banks 177

direct / indirect agricultural lending 177

small scale industries 178

DRI advances 178

Weaker sections 178

Targets for foreign banks 178



rural infrastructure developments fund (RIDF ) 180

common guidelines for priority sector advances 183

application forms 183

mode of disbursement of loan 184

repayment schedule 184

rates of interest 184

penal interest 185

inspection charges 185

insurance against fire and other risks 185

other charges 186

photographs of borrowers 186

discretionary powers 186

machinery to look into complants 186

amendments 186

Chapter – 1 : Overview of Financial markets Meaning and scopeFollowing groups; organized sector and unorganized sector ; financial servicesFinancial systems commercial banks ; development financial institutions ;

insurance companies ; other public sector financial institutions ; post officesavings bank ; national bank for agriculture and rural development ; Mutualfunds ; non – banking financial institutions

1 – 5

Chapter – 2 Reserve bank of India – The main functions of RBI are ; Note

issuing authority ; banker to the Government ; Bankers’ Bank ; Supervisingauthority ; Exchange control Authority ; Promoter of Financial System ; Fiscal

and Monetary policy ; open market operations ;

9 – 12

Chapter – 3 – Development Financial Institutions – Introduction ; Industrial

Finance Corporation of India ; Industrial development bank of India ;Industrial credit and investment corporation of India ltd., The purpose IRBI ;

SFCs ; The SIDCs and SIICs ; Functions ; state small industries developmentcorporations (SSIDCs) Power Finance Corporation (PFC) Financial Services

Offered by the Corporation ; Lease Financing – Direct Discounting of Bills;;Guarantee Services; Loan Syndication ; short term loan ;

17 – 21

Institutional Development ServicesActing as an instrument for ushering in reforms in the state utilities both

financial and technical ; utility development plans ; Financial Assistance for power sector studies ; Reform & Restructuring related studies ; Reforms &

Restructuring of SEBs ; Export import bank of India ; National Bank for

agriculture and rural development ; Genesis of NABARDTypes of refinance facilities ; interest rates ; production credits ; Other refinance facilities ; investment credit (Medium and long term) Refinance

22 - 31

Shipping credit and investment company of India (SCICI)Agricultural Finance Consultancy Ltd (AFC)

Membership ; Organization ; Services ; Area of specialization ; surveys &studies ; crop production ; Forestry ; Irrigation & Drainage ; Agricultural

Engineering ; Horticulture & Plantation ; Fisheries ; Livestock & Dairy ;Agricultural & Livestock Marketing ; Agri-Business & Agro-Industries ; Area

Development Planning ; Agricultural & Rural Credit ; Project Formulation &Appraisal ; Institution Building ;

33 – 37



Social Sector Development ; Remote Sensing Application & Resources

Management Centre ; Training & Manpower Development ; RuralInfrastructure ; Surveys and Studies ; National Co-operative Development

Corporation (NCDC) ; Genesis ; Functions ; Organization and Management ;Finance and Financing ; Purposes for which assistance is provided ; Procedureof sanction / disbursal of assistance ; Promotional and development role ;

Activities and program ; Marketing ; Agricultural inputs ; Agro- Processingindustries ; Sugar ; Spinning Mill ; Others ; Storage and Cold Storage ; Storage

; Cold Storage ; Program for weaker sections ; Consumer business

38 – 41

Are based integrated co-operative development project ; National housing bank (NHB) Role and functions in Housing sector ; Role NHB; Housing and urban

development corporation (HUDCO); Housing development financecorporation (HDFC) ; land development banks ;

42 – 45

Chapter - 4 – Banking Sector – What is bank and what is banking Extendingfinancial assistance to exports on soft terms ; safe custody services for safe

keeping of important documents ; acceptance of deposits from non-residentIndians ; difference between retail banking and wholesale banking

49 – 51

What is a schedule bank in India ; What is the difference between acommercial bank and a co-operative bank ; different bank accounts – deposit ;

deposit account without withdrawals facility – different categories ;

52 – 53

Different bank accounts – advances and loans ; cash credit loan ; repayment period ; banking terms often used / common banking practices ; discount ;

remittance ; letter of credit ; advantage ; Bank guarantee ; example of financialguarantee example of performance guarantee ; letters of credit and bank guarantees play a very important role in international banking statutory

Reserve ratio ; Note pertaining to reserve ratio ; clearing operation ; daily product basis ; repayment holiday

54 – 58

Credit instruments ; Negotiable instruments ; acceptance ; credit report ;

syndication ; custodial service ; security ; foreign exchange ; securitization ;international banking internal trade tourism ; remittance of funds from one

place to another place besides tourism / international trade ; Syndication of loans globally for corporate houses ;

59 -61

Accessing international market for equity / borrowing in the form of ADR /

GDR and Ero Bonds Etc., Foreign exchange management ; profile of a bank different layers of banking operations in India in general ; what are the dutiesof an international banking department? Exchange operations administrative

functions in a bank ; different administrative units in a bank

62 – 63

Typical functions of different administration units of a bank ; at the head officelevel ; banking business vs. other business ; deposit insurance and credit

guarantee corporation (DICGC) ; Export credit guarantee corporation (ECGC)

64 – 68

Chapter – 5 Indian Money Market – Indian Money Market ; instruments ;

Money market instruments ; commercial paper (CP) certificates of deposit(CD) ; Treasury Bills (T – Bills); long term debt instruments ; government of

India dated securities (GOISECs) ; New types of Goisecs ;

73 – 77

State government securities (State Loans) ; Public Sector Undertaking Bonds(PSU Bonds ) ; Bonds of public financial institutions (PFIs) Corporate

78 - 83



debentures ; Pass Through Certificates (PTSs) Issuers ; Government of India

and other sovereign bodies ; Banks and development financial instructions ; public sector undertaking (PSUs) private sector companies ; Government

owned or quasi government non corporate entities ; investors ; banks ; banks ;Insurance companies ; provident funds ; Several factors have contributed to the

growth of PFs in India ; Mutual funds ; trusts ; corporate treasuries ; foreigninstructional investors ; securities trading corporation of India ltd., (STCI) ;

discount and finance house of India;

84 – 89

Chapter – 6 – Non Banking Financial intermediariesLIC ; General Nature of Insurance Companies ; Introduction of Life Insurance

Corporations ; Types and structure of insurance plans ; valuation of life policy; growth of life business and fund ; investment pattern and policy ; generalinsurance corporation ; organization ; types and structure of business; income

and investment pattern

93 - 97

Unit trust of India and other mutual funds ; provident / pension funds; postoffices ; other non-bank financial companies’ (NBFCs) ; Investment

companies ;

98-101

Loans companies chit funds ; nidhis functions ; accepting deposits loan andadvances ; other aspects ; Hire – purchase finance companies ; functions ;installment – credit ; financing of purchase of equipment, vehicles etc. ;

purchase of old assets ; consumer credit ; equipment leasing financecompanies;

102 – 105

Chapter – 7 ; International Financing agencies – International monetary Fund

(IMF) ; Funding facilities ; Schemes of the IMF funding ; concessional andnon-concessional lending ; IMF Facilities ;

109 – 113

poverty reduction and growth facility ; stand – by arrangement ; extended fundfacility ; supplemental reserve facility ; contingent credit lines ; compensatory

financing facility ; emergency assistance ; special drawing rights ; theinternational bank for reconstruction and development ; international finance

corporation ; 1956; international development association ; the bank for international settlements ; regional development agencies ; European bank for

reconstruction and development;

114 – 117

Important regulatory instructions issued by the RBI ; contents ; general ;definitions ; non – performing assets ; year ending march 31 specified period ;out of order status ; overdue ; income recognition ; income recognitions ;

income recognition – policy ; reversal of income this will apply to governmentguaranteed accounts also ; appropriation of recovery in NPAs ; interest

application ; reporting of NPAs; Asset classification ; categories of NPAs ; sub – standard assets ; NPA for a period less than or equal to 18 months ;

119 – 123

Guidance note on asset classifications ; provisioning norms ; doubtful assetsloss assets ; guidelines for classification off assets ; accounts with temporary

deficiencies ; up gradation of loan accounts classified as NPAs ; Accountsregularized near about the balance sheet date ;

124 – 125

Asset classification to be borrower – wise and not facility wise ; ; advances

under consortium arrangements ; record of recovery of the individual member;accounts where there is a erosion in the value of security ; advances to

126-127



PACs/FSS ceded to commercial banks ; advances against term deposits NSC’s

KVP / IVP ; loans with moratorium for payment of interest ; agriculturaladvances;

Government guaranteed advances ; restructuring of loans ; upgradation of restructured accounts; general ; corporate debt restructuring (CDR System)

Background ; objective structure CDR system in the country will have a threetier structure ; cdr standing forum and its core group ; cdr empowered group ;

cdr cell ;

128- 134

Other features ; eligibility criteria ; reference to CDR system ; legal basis ;stand – still clause ; additional finance ; exit option ; conversion option ;

category 2 cdr system ; accounting treatment for restructured accounts ;

135 – 140

Disclosure ; implementation of the revised guidelines ; projects under

implementation ; asset classification ; category II ; category III ; incomerecognition ; provisioning ; availability of security / net worth of borrower /

guarantor ; take – out finance ; post – shipment supplier’s credit

141 – 145

Export project finance ; advances under rehabilitation approved by BIFR / RLI; provisioning norms general ; loss assets ; doubtful assets ; period for which

the advance has been considered as doubtful ; provisions requirement ;valuation of security for provisioning purposes ; sub-standard assets ; standardassets ; floating provisions ; provisions on leased assets sub – standard assets ;

doubtful assets ; period age provisions loss assets ; loss assets ; guidelines for provisions under special circumstances ; government guaranteed advances

146 – 149

Advances granted under rehabilitation packages approved by BIFR / term

lending institutions ; treatment of interest suspense account ; Advancescovered by ECG / DICGC guarantee ; advance covered by CGTSI guarantee ;

Take out finance ; reserve for exchange rate fluctuations account (RERFA) ;Provisioning for country risk ; Risk category ; ECGC classification ;Provisioning requirement (per cent)

150 – 153

Provisioning norms for sale of financial assets to securitization company (SC) /

Reconstruction company (RC) ; writing off of NPAsAnnexure – II Revelant extract of the list of direct agricultural advances from

the Master Circular on lending to priority sector – RPCD. Plan.BC. 42A /01.09.01/ 2001-02 dated 11 November, 2002.

154-156

Direct Finance of farmers for Agricultural Purposes ; purchase of agriculturalimplements and machinery ; development of irrigation potential through ;

reclamation and loan development schemes ; construction of farm buildingsand structure etc., ; construction and running of storage facilities ; production

and processing of hybrid seeds for crops ; payment of irrigation charges etc., ;other types of direct finance of farmers ; Lending to Priority Sector

156 - 158

Section – 1 – Classification of Priority Sector advances ; Agriculture ; directFinance to Framers for Agricultural Purposes ; Indirect Finance to agriculture ;

small scale industries ; small scale and ancillary industries ;

161 – 165

Tiny Enterprises ; small scale service & Business Enterprises (SSSBE’s) ;Indirect finance in the small – scale industrial sector will include credit to ;

industrial estates KVI Sector ; Other Activities / Borrowers in the Prioritysector ; Small road & Water Transport operators (SRWTO)

166 - 167



Retail trade – advances granted to small business ; professional & self –

employed persons ; state sponsored organizations for scheduled castes /scheduled tribes

168 – 169

Education ; housing ; consumption loans ; loans to self – help groups (SHGs) / NGOs / Microcredit ; Food and agro – based processing sector ; software

industry ; venture capital

170 – 171

Section – II ; Certain Types of Funds deployment eligible as priority sector advances ; State Financial Corporations (SFCs) / State Industrial Development

Corporations (SIDCs) ; Rural Electrification Corporation (REC) ; Nabard ;Small industries development Bank of India (SIDBI) ; the National industries

corporation ltd., (NSIC) ; National housing bank (NHB) ; Housing & Urbandevelopment corporation (HUDCO) ;

173 - 174

Other investments ; lines of credit ; bills rediscounting ; deposits in ruralinfracture development fund (RIDF) leasing and hire purchase

174 – 175

Section – III – Targets for priority sector lending by scheduled commercial

banks (excluding RRBs) ; Main Targets for all scheduled commercial banksexcluding foreign banks ; sub-targets for all scheduled commercial banks

excluding foreign banks ; Direct / Indirect Agricultura lending

177

Small scale industries ; DRI advances ; weaker sections ; Targets for foreign banks ; deposit by foreign banks with SIDBI towards shortfall in priority sector lending ; contribution by banks to rural infrastructure development fund

(RIDF)

178 – 181

Section – IV – Common guidelines for priority sector advancesProcessing of applications ; completion of application forms ; issue of

acknowledgement of loan applications ; disposal of applications ; rejection of proposals ; register of rejected applications ; mode of disbursement of loan ;repayment schedule ; rates of interest

183 – 184

Penal interest ; inspection charges ; insurance against fire and other risks ;

banks may waive insurance of assets financed by bank credit in the followingcases;

185

Other charges ; Photographs borrowers; discretionary powers; machinery to

look into complaints ; amendments ; annexure I – general guidelines on priority sector lending ; general guidelines on priority sector lending

186 -189



For its long term operations NABARD raises funds by :-

a)

b)

c)

d)

Floating Bonds in openmarket

Drawing from the CentralGovt.

Drawing from National Ruralcredit Funds

Borrowing from RRBs

Secured Premium Notes areBonds

.Most of the Indian PS Banks practice retail banking.

True

False

1. Pure NBFI 1. REC

2. Specialised NBFI 2. FFC

3. Film Finance 3. HDFC

4. Rural Electrification 4. Chit Funds

5. UTI

6. NICo Ltd.

Marks : 2

26.acilities

are for economies in transition.

Legally speaking Pass Through Certificates

are and are tradeablefreely.

EXIM Bank canraise resources by:-

a)

b)

c)

Issuing bonds

Borrowing fromRBI



d) Borrowing fromInternational

FinancialInstitutions

Borrowing fromState Govt

1. Gen.Insurance 1. LIC of India Ltd

2. Life Insurance 2. HDFC

3. Mutual fund 3. PPF

4. Small

Savings

4. Chit Funds

5. UTI

6. NICo of India Ltd.

If the Bank allows a finance of Rs 95 against a Bill of Rs 100 the difference of Rs. 5is known as the :-

a)

b)

c)

d)

Discount

Margin

Interest

Commission

41. DFHI was set up with the following objective :-

a)

b)

c)

d)

Executor Trustee Services

To even out imbalances

To provide liquidity

To promote secondary market





Question SIDBI provides :-





Your Answer False


Question Which of the following services is not provided by Commercialbanks?

Correct Answer Deposit Insurance




Your Answer IFCI





Correct Answer True

Your Answer True


Correct Answer True

Your Answer True








Your Answer False



Your Answer False


the project.

Correct Answer Feasibility




Your Answer True



Your Answer 0











Your Answer Power









Your Answer ICICI


Correct Answer True

Your Answer True

Select The Blank











Correct Answer True

Your Answer True





Correct Answer True

Your Answer False



Your Answer True




Correct Answer IMF

Your Answer UNO








Correct Answer 1978

Your Answer 1975







Match The Following



Fisheries Fisheries








Hill ,Tribal Areadevelopment Area Development Area Development






Financial Institutions & Banking_6

- 1 -



Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoralplanning

Your Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoralplanning


Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines

of CreditYour Answer Handling foreign currency , Handling Doc. credits , Granting lines

of Credit



Your Answer FEDAI

True/False

Question The Capital of NABARD is subscribed by World Bank.


Your Answer True



Your Answer False



Your Answer Power

True/False




- 2 -


Correct Answer True

Your Answer False

Match The Following











Correct Answer True

Your Answer True







Select The Blank




- 4 -





Correct Answer True

Your Answer True














Correct Answer True




- 5 -

Your Answer True



Your Answer False


Correct Answer RBI

Your Answer RBI

Multiple Choice Single Answer Question Account where lump sum investment is made for specific period

is :-Correct Answer Term Deposit account



Question The apex institution in the field of foreign trade in India is :-








Your Answer ICICI





- 6 -




Select The BlankQuestion Syndication of Loans Globally does not involve any funds as it is

_______ activity.Correct Answer Non-fund based






Correct Answer SDR

Your Answer EFF













- 7 -




Match The Following






Shares Shares


Select The BlankQuestion 55% of HUDCO loans are earmarked for________& low income

groups.Correct Answer Weaker sections




Your Answer False










- 8 -










- 1 -

38. Initial Quantum of resources of IMF were contributed by members according to :-

Quotas fixed for members

SDR fixed for membersPopulation

Wealth of the nation








Multiple Choice Single Answer Question Which of the following institution was set up as a subsidy of RBI

in 1964?Correct Answer IDBI

Your Answer IDBI





Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years






- 2 -


Your Answer False



Your Answer False




Multiple Choice Multiple Answer Question Post Offices are popular for mobilizing small savings of the

public due to :-Correct Answer Wide network , Tax concessions , Saftey of funds

Your Answer Wide network , Tax concessions



Your Answer True




Multiple Choice Single Answer Question NABARD was established on the recommendations of :-

Correct Answer CRAFICARD

Your Answer CRAFICARD

Select The Blank




- 3 -

Question Period of Holiday Insurance is ________.







Question R B I issues currency notes against the security of:-



Select The BlankQuestion AFC's membership consists of commercial, cooperative banks

and DFIs including ________.Correct Answer EXIM bank






infrastructure projects are :-Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Your Answer SSN Nigam Ltd , MSR Dev.Corporation , MKV Dev. Corporation.

Select The BlankQuestion SCICI provides domestic & foreign loans for capital equipment

and________ services.Correct Answer Technical

Your Answer Technical




- 4 -


Correct Answer Usance promissory note

Your Answer Usance promissory note



Your Answer False



Your Answer GIC





Correct Answer To augment export finance in India , To channelise World Bank'sfunds to industries in India , To help in building up a CapitalMarket in India

Your Answer o augment export finance in India , To channelise World Bank'sfunds to industries in India , To help in building up a Capital

Market in India



Your Answer ICICI





- 5 -

Question A company issues CP to save on :-

Correct Answer Interest cost

Your Answer Interest cost


Correct Answer Granting lines of Credit , Handling foreign currency , HandlingDoc. credits

Your Answer Handling foreign currency , Handling Doc. credits , Granting linesof Credit




True/FalseQuestion he currency notes issued by RBI are legal tender everywhere in

India without any limit.Correct Answer True

Your Answer True






Your Answer False



Your Answer Straight coupon bonds , Inflation linked bonds , Zero coupon




- 6 -

bonds




Multiple Choice Single Answer Question DICGC also provides :-

Correct Answer Security to deposits

Your Answer Guarantee to banks

Match The Following


Small Savings Chit Funds Chit Funds

Gen.Insurance NICo of India Ltd. NICo of India Ltd.

Life Insurance LIC of India Ltd LIC of India Ltd

Mutual fund UTI UTI

Select The BlankQuestion Financial markets are the centres that provide facilities for

buying and selling of ________.Correct Answer Financial claims and services

Your Answer Goods and services


Question Tourism promotes :-

Correct Answer Credit Card Business , International remittances , Travellers'Cheques

Your Answer Credit Card Business , International remittances , Travellers'Cheques

Multiple Choice Multiple Answer Question The major area of AFC's specialisation included Crop Production

as well as:-Correct Answer Crop Planning , Plant Protection , Farm Management




- 7 -

Your Answer Crop Planning , Plant Protection , Farm Management

True/FalseQuestion CP is a usance promissory note hence it can be negotiated by

endorsement & delivery.Correct Answer True

Your Answer False





Correct Answer True

Your Answer True

True/False

Question SCICI is a member of the OTCEI.

Correct Answer True

Your Answer True

Select The BlankQuestion In a Bank, the investment decisions are taken at ________ level.

Correct Answer Head Office

Your Answer Head Office

Match The Following








- 8 -

NCDC Development of Cooperatives

Development of Cooperatives

True/FalseQuestion Banks issue Guarantees on behalf of their clients.

Correct Answer True

Your Answer True

Multiple Choice Single Answer Question NonBanking Financial Companies are :-

Correct Answer Financial institutions

Your Answer Financial institutions

Multiple Choice Single Answer Question record of the holdings of GOI dated securities of each holder is

contained in :-Correct Answer SGL pass book






Development.Correct Answer True

Your Answer True



Your Answer Confirmed

Select The BlankQuestion The ________ of NABARD covers release of refinance without

prior sanction for refinance limit.Correct Answer ARS

Your Answer CFSF

True/False

Question Banks lend to corporates directly.

Correct Answer True

Your Answer True



Your Answer True



Your Answer True

Match The Following





IFCI Banking System

Organised sector Banking System IFCI





Your Answer Paid-up

Select The BlankQuestion Development financial institutions have been established to cater

to ________ of the industrial sector.Correct Answer Long term financial needs

Your Answer Short term financial needs

Select The BlankQuestion General insurance policies are genarally issued for ________

year.

Correct Answer One

Your Answer Ten



Your Answer True



Your Answer Banking Regulation Act








Your Answer Money markets



Your Answer True


Correct Answer True

Your Answer True


Correct Answer IDBI

Your Answer IDBI






Your Answer Financial support to SSIDC

Multiple Choice Multiple Answer Question R B I conducts monetary control by way of O M O in :-




Your Answer Treasury bills , Ways and means advances , TOD

Select The BlankQuestion SCICI provides domestic & foreign loans for capital equipment

and________ services.Correct Answer Technical

Your Answer After sales



Your Answer Financial companies


Correct Answer True

Your Answer True

True/FalseQuestion IDA does not lend to countries that are not in a position to

borrow from IBRD.Correct Answer False

Your Answer True

Multiple Choice Single Answer Question The underdeveloped markets are characterised by : -









Your Answer True


Correct Answer At high interest , Unsecured , Based on borrowers worth


Multiple Choice Single Answer Question record of the holdings of GOI dated securities of each holder is

contained in :-Correct Answer SGL pass book




Your Answer HUDCO

Select The Blank

Question Financial markets are the centres that provide facilities for buying and selling of ________.Correct Answer Financial claims and services

Your Answer Fixed assets



Your Answer 0.05

Multiple Choice Single Answer Question A company issues CP to save on :-

Correct Answer Interest cost

Your Answer Taxes

Select The Blank



Question The price in financial markets is known as ________.


Your Answer Premium


Correct Answer RBI

Your Answer RBI






Your Answer Legal Tender

True/FalseQuestion Cancellation of a Guarantee is known as "revocation".

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question IFCI raises its funds by way of :-

Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from IDBI

Your Answer Issuing bonds , Issuing shares




Multiple Choice Single Answer Question Cetificate of deposit are issued by

Correct Answer Banks


Match The Following


Film Finance FFC Chit Funds

Rural Electrification REC REC

Pure NBFI UTI UTI



Specialised NBFI HDFC HDFC

Multiple Choice Single Answer Question SFCs suffer from a very high ratio of:-




infrastructure projects are :-Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Your Answer Konkan Railway Corporation , MSR Dev.Corporation

Multiple Choice Multiple Answer Question EXIM Bank can raise resources by:-

Correct Answer Issuing bonds , Borrowing from RBI , Borrowing fromInternational Financial Institutions

Your Answer Issuing bonds , Borrowing from RBI




True/FalseQuestion CPs have to be compulsorily rated.

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question he major area of AFC's specialisation included Crop Production

as well as:-Correct Answer Crop Planning , Plant Protection , Farm Management

Your Answer Crop Planning , Plant Protection

Multiple Choice Multiple Answer Question EXIM Bank provides financial assistance to:-



Correct Answer Indian Companies , Commercial Banks , Foreign Governments

Your Answer Investment trusts , Indian Companies



Your Answer Credit report , Banker's report , Client's Report


Correct Answer RBI

Your Answer RBI



Your Answer True

Multiple Choice Single Answer Question Credit Risk under NEF Scheme of SIDBI is borne by :-

Correct Answer Central Govt & SIDBI

Your Answer SIDBI



Your Answer Deposits



Your Answer Operation

Select The Blank



Question Financial markets are the centres that provide facilities for buying and selling of ________.

Correct Answer Financial claims and services

Your Answer Financial claims and services





Correct Answer Pre-feasibility studies , Regional /Sectoral planning , BenchmarkSurveys

Your Answer Pre-feasibility studies , Regional /Sectoral planning , BenchmarkSurveys

True/FalseQuestion EXIM Bank provides Lines of Credit to other nations for Indian

exports.Correct Answer True

Your Answer True



Your Answer False





Correct Answer True



Your Answer A Slice




Select The BlankQuestion The department handing ________ in the banks is known as the

Treasury.Correct Answer Investments

Your Answer Cash & currency


Correct Answer True

Your Answer True



Your Answer Salaried persons

Multiple Choice Multiple Answer Question The objective NEF Scheme of SIDBI is to provide equity support

to :-Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing

units in tiny & small scale sector Your Answer Existing Large Industrial Units , New Units in tiny Sector , New

Units in Small Sector

Multiple Choice Multiple Answer Question Treasuries could be either those of the :-

Correct Answer PSUs , Private Sector Cos. , Govt.bodies

Your Answer PSUs , Private Sector Cos. , FIIs

Select The Blank



Question NABARDs Criteria for Refinance covers Technical ________ of the project.

Correct Answer Feasibility

Your Answer iability


Correct Answer RBI

Your Answer Central Govt.

True/False



Your Answer False

Select The BlankQuestion Kisan Vikas Patra are issued through ________.



Multiple Choice Single Answer Question NonBanking Financial Companies are :-

Correct Answer Financial institutions

Your Answer Manufacturing units



Your Answer Money lenders , Indigenous bankers , Chit funds

True/FalseQuestion Most of the Indian PS Banks practice retail banking.

Correct Answer True

Your Answer True



Select The BlankQuestion Secured Premium Notes are ________.

Correct Answer Debentures

Your Answer Bonds


Correct Answer True

Your Answer False




Select The Blank

Question The Shipping Credit and Investment Company of India Ltd. has changed itsname to ________ effective from October 1992.


Select The BlankQuestion AFC's membership consists of commercial, cooperative banks and DFIs

including ________.




Question Financial institutions deal in :-



Multiple Choice Single Answer Question The lender of the last resort to the market! is the :-


Select The BlankQuestion One of the objectives of NHB is to augment the ________ resources for the

housing sector.

Correct Answer FinancialYour Answer Financial


Question IDA lends to poor countries :-

Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up

to ten yearsYour Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to

ten years

Multiple Choice Single Answer Question A company issues CP to save on :-Correct Answer Interest cost

Your Answer Interest cost

True/False




Correct Answer True

Your Answer True




Correct Answer FalseYour Answer True


Correct Answer RBI ActYour Answer RBI Act

Multiple Choice Multiple Answer Question The major area of AFC's specialisation included Crop Production as well

as:-



Correct Answer Financial commitment , Voting power , Drawing power Your Answer Financial commitment , Voting power , Drawing power


Correct Answer Six months or lessYour Answer Three years


Correct Answer Government regulation and controlYour Answer Government reg! ulation and control








Question The unorganised financial system includes :-




Question Long term debt instruments have a maturity of :-




Question The general insurance business can be :-



Fertilisers.


Your Answer False




True/False

Question NABARD is an apex institution in the field of Integrated Rural Development.&nbs! p;

Correct Answer True

Your Answer True

Select The Blank

Question 55% of HUDCO loans are earmarked for________& low income groups.






Question Development Financial institutions include :-





Correct Answer &n! bsp; Rate of interestYour Answer Rate of interest








Your Answer ICICI



True/False

Question A Bill of Exchange is negotiable.

Correct Answer True

Your Answer True


Question Commercial Papers are issued by :-



Multiple Choice Multiple Answer Question In case of a Life policy it is possible to withdraw from the obligation to

contribute further premium by :-

Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning itin the open market

Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in

the open market


Question The organised financial system includes :-



Select The Blank

Question The term ________ refers to the act of a bank extending finance to theseller against a letter of credit.



Question Functions of a Bank's H.O. include:-




Question Bonds issued by institutions through SPVs to execute infrastructure projectsare :-

Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd


Correct Answer Premium collectedYour Answer Premium collected

!Multiple Choice Multiple Answer

Question Treasuries could be either those of the :-

Correct Answer PSUs , Private Sector Cos. , Govt.bodies



Question Under Project Finance Scheme IDBI provides assistance for :-



True/False




Question The ultimate source of money in India is:-

Correct Answer RBI

Your Answer RBI

True/False

Question The SFCs also borrow from SIDBI & IDBI.


Your Answer True


Question RBI was established under the:-


Multiple Choice Multiple Answer Question The major area of AFC's specialisation included Crop Production as well

as:-

Correct Answer Crop Planning , Plant Protection , Farm Management

Your Answer Crop Planning , Plant Protection , Farm Management




Select The Blank

Question Period of Holiday Insurance is ________.

Correct Answer Six months or lessYour Answer Three years


Correct Answer Government regulation and controlYour Answer Government regulation and control




Question Cetificate of deposit are issued by :-











Fertilisers.



Correct Answer Money lenders , Indigenous bankers , Lending pawn brokersYour Answer Money lenders , Indigenous bankers , Lending pawn brokers



















Select The Blank

Question The HDFC was set up in 1977 by the ________.




Your Answer Term Deposit Receipt

True/False


Correct Answer True

Your Answer True




Question Commercial Papers are issued by :-

Correct Answer CorporatesYour Answer Corporates

Multiple Choice Single Answer Question A current account where the customer can withdraw more than the balance

is :-

Correct Answer Overdraft

Your Answer Overdraft


Question The loans of finance companies are generally :-

Correct Answer At high interest , Unsecured , Based on borrowers worth



Question For a focus on the SSI Sector in 1986 IDBI created :-






True/False

Question Under MIGA the World bank offers various forms of Political Insurance.


Multiple Choice Multiple Answer Question In case of a Life policy it is possible to withdraw from the obligation to

contribute further premium by :-








Corporates RIL, HPCL RIL, HPCLNGOs CSP, CRY, PLAN CSP, CRY, PLAN

DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI

PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India

Multiple Choice Multiple Answer Question DFHI was set up jointly by :-

Correct Answer RBI , Banks , All India FisYour Answer RBI , Banks , All India Fis , SEBI

Select The BlankQuestion In addition to IFCI and ________ the Soft Loan Scheme for modernisation is

also undertaken by IDBI.




Multiple Choice Single Answer Question Investment on a monthly basis and repayment on due date

is made in :-

Correct Answer Recurring depositYour Answer Term deposit account


Correct Answer Credit Card Business , International remittances ,Travellers' Cheques

Your Answer Credit Card Business , International remittances ,Travellers' Cheques




Your Answer True

Multiple Choice Single Answer Question SIDBI commenced its operations from :-

Correct Answer April 2,1990Your Answer April 2,1990




Correct Answer Commercial banksYour Answer Financial companies


Correct Answer By borrowing from IBRD , By lending at 0%interest. , For periods up to ten years

Your Answer By borrowing from IBRD , By lending at 0% interest. ,

For periods up to ten years


Question The prominent Bond issuing PSU are :-

Correct Answer MTNL , NTPC , SAILYour Answer MTNL , NTPC , SAIL

Match The Following


Hill ,Tribal Area development Area Development Area Development

Aquaculture , Brackish Water Fisheries Fisheries

Ploughing, weeding, transplantation

Seasonal Agricultural Operations Irrigation & Drainage

Market Yards, Storage &

Warehousing Agricultural Marketing Agricultural Marketing

True/FalseQuestion Small Savings are source of Capital Receipts for the Government.



Your Answer Borrowing from RBI , Borrowing from International Financial Institutions


Question PFC is committed to the integrated development of :-

Correct Answer Power Your Answer Power

True/FalseQuestion PFC has been persuading State Governments restructuring of their power

sector to make them viable.



Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDCYour Answer Refinance , Financial support to SSIDC , Cash Credit facilities

True/FalseQuestion Under MIGA the World bank offers various forms of Political Insurance.


Multiple Choice Multiple Answer Question Other than Tourism, International funds remittances comprise of :-

Correct Answer Donations/Charity , Payments of Salaries , Payments of RoyaltyYour Answer Payments of Royalty , Travel related payments

True/False

Question SCICI is a member of the OTCEI.

Correct Answer TrueYour Answer False




True/False


Correct Answer True

Your Answer True



True/False

Question HDFC was set up by NHB.


Select The BlankQuestion Mutual Funds provide the benefits of ________.

Correct Answer Portfolio managementYour Answer Portfolio management

True/FalseQuestion In case of T-Bills potential investors have to put in

competitive bids.

Correct Answer True

Your Answer True

True/False

Question Non bank financial institutions undertake fund and non fund based activities.



Correct Answer Inspection/audit , Control on branches , Grant loans/advancesYour Answer Inspection/audit , Control on branches , Grant loans/advances


Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit

Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits, Granting lines of Credit

Select The BlankQuestion Secured Premium Notes are ________.

Correct Answer Debentures

Your Answer Debentures

Select The Blank

Question Syndication involves ________ sanction.


Your Answer Funded










of Credit



Your Answer FEDAI

True/False



Your Answer True



Your Answer False



Your Answer Power

True/False




Correct Answer True

Your Answer False

Match The Following











Correct Answer True

Your Answer True







Select The Blank







Correct Answer True

Your Answer True














Correct Answer True



Your Answer True



Your Answer False


Correct Answer RBI

Your Answer RBI













Your Answer ICICI














Correct Answer SDR

Your Answer EFF















Match The Following






Shares Shares







Your Answer False










Select The Blank

Question The Shipping Credit and Investment Company of India Ltd. haschanged its name to ________ effective from October 1992.Correct Answer SCICI LtdYour Answer SCICI Ltd

Select The BlankQuestion AFC's membership consists of commercial, cooperative banks and DFIs

including ________.Correct Answer EXIM bankYour Answer EXIM bank

Multiple Choice Single AnswerQuestion Financial institutions deal in :-Correct Answer Financial assets


Multiple Choice Single AnswerQuestion The lender of the last resort to the market! is the :-Correct Answer RBIYour Answer RBI

Select The BlankQuestion One of the objectives of NHB is to augment the ________ resources

for the housing sector.Correct Answer FinancialYour Answer Financial

Multiple Choice Multiple AnswerQuestion IDA lends to poor countries :-

Correct Answer By borrowing from IBRD , By lending at 0% interest. , Forperiods up to ten years

Your Answer By borrowing from IBRD , By lending at 0% interest. , Forperiods up to ten years

Multiple Choice Single AnswerQuestion A company issues CP to save on : -Correct Answer Interest costYour Answer Interest cost

True/FalseQuestion PFC has been persuading State Governments restructuring of their

power sector to make them viable.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The ultimate source of money in India is:-Correct Answer RBIYour Answer RBI

True/FalseQuestion The SFCs also borrow from SIDBI & IDBI.Correct Answer FalseYour Answer True



Multiple Choice Single AnswerQuestion RBI was established under the:-


Multiple Choice Multiple AnswerQuestion The major area of AFC's specialisation included Crop Production as

well a! s:-Correct Answer Crop Planning , Plant Protection , Farm ManagementYour Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple AnswerQuestion A member's IMF Quota determines its :-Correct Answer Financial commitment , Voting power , Drawing powerYour Answer Financial commitment , Voting power , Drawing power

Select The BlankQuestion Period of Holiday Insurance is ________.Correct Answer Six months or lessYour Answer Three years

Multiple Choice Single AnswerQuestion The underdeveloped markets are characterised by : -Correct Answer Government regulation and controlYour Answer Government reg! ulation and control

Multiple Choice Single AnswerQuestion Cetificate of deposit are issued by :-

Correct Answer Banks

Your Answer Banks

True/FalseQuestion The bids for T-Bills are on price/interest basis.Correct Answer TrueYour Answer True

Multiple Choice Single AnswerQuestion The unorganised financial system includes :-Correct Answer Indigenous bankersYour Answer Indigenous bankers

Multiple Choice Single AnswerQuestion Long term debt instruments have a maturity of : -

Correct Answer Over one yearYour Answer Over one year

Multiple Choice Multiple AnswerQuestion The general insurance business can be :-Correct Answer Marine insurance , Fire insurance , MiscellaneousYour Answer Fire insurance , Miscellaneous , Marine insurance





Multiple Choice Multiple AnswerQuestion The unorganised financial system comprises of : -



Development.&nbs! p; Correct Answer True

Your Answer True

Select The BlankQuestion 55% of HUDCO loans are earmarked for________& low income groups.Correct Answer Weaker sectionsYour Answer Weaker sections

Multiple Choice Single AnswerQuestion Development Financial institutions include : -Correct Answer State financial institutionsYour Answer State financial institutions

Multiple Choice Single AnswerQuestion Money Markets Instruments have a maturity of less than :-Correct Answer One yearYour Answer One year


Correct Answer &n! bsp; Rate of interest







Select The BlankQuestion The HDFC was set up in 1977 by the ________.Correct Answer ICICIYour Answer ICICI

Multiple Choice Single AnswerQuestion Certificate of deposit is a :-Correct Answer Usance promissory noteYour Answer Term Deposit Receipt

True/FalseQuestion A Bill of Exchange is negotiable.Correct Answer True



Your Answer True


Question Commercial Papers are issued by :-Correct Answer CorporatesYour Answer Corporates

Multiple Choice Single AnswerQuestion A current account where the customer can withdraw more than the

balance is :-Correct Answer OverdraftYour Answer Overdraft

Multiple Choice Multiple AnswerQuestion The loans of finance companies are g enerally :-Correct Answer At high interest , Unsecured , Based on borrowers worthYour Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single AnswerQuestion For a focus on the SSI Sector in 1986 IDBI created :-

&n! bsp; Correct Answer SIDFYour Answer SIDF

True/FalseQuestion Issuance of CD attracts reserve requirements.Correct Answer FalseYour Answer False

True/False

Question Banks issue Guarantees on behalf of their clients.








Insurance.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion In case of a Life policy it is possible to withdraw from the


Assigning it in the open market




Select The Blank

Question The Shipping Credit and Investment Company of India Ltd. has changed its name to ________ effective from October 1992.Correct Answer SCICI Ltd



________.Correct Answer EXIM bank





Your Answer RBI


sector.Correct Answer Financial


Multiple Choice Multiple Answer Question IDA lends to poor countries :-Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten

yearsYour Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years


Correct Answer Interest costYour Answer Interest cost


make them viable.Correct Answer TrueYour Answer True


Question The ultimate source of money in India is:-Correct Answer RBIYour Answer RBI

True/False

Question The SFCs also borrow from SIDBI & IDBI.Correct Answer FalseYour Answer True






Multiple Choice Multiple Answer Question The major area of AFC's specialisation included Crop Production as well as:-Correct Answer Crop Planning , Plant Protection , Farm ManagementYour Answer Crop Planning , Plant Protection , Farm Management



Select The Blank



Question The underdeveloped markets are characterised by :-Correct Answer Government regulation and controlYour Answer Government regulation and control


















True/FalseQuestion NABARD is an apex institution in the field of Integrated Rural Development.Correct Answer TrueYour Answer True

Select The Blank

Question 55% of HUDCO loans are earmarked for________& low income groups.Correct Answer Weaker sectionsYour Answer Weaker sections


Question Development Financial institutions include :-Correct Answer State financial institutionsYour Answer State financial institutions















Your Answer True




Multiple Choice Multiple Answer Question The loans of finance companies are generally :-Correct Answer At high interest , Unsecured , Based on borrowers worthYour Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer Question For a focus on the SSI Sector in 1986 IDBI created :-Correct Answer SIDFYour Answer SIDF


True/False

Question Banks issue Guarantees on behalf of their clients.Correct Answer True

Your Answer True

Match The Following










open market





Correct Answer Commercial banksYour Answer Commercial banks



Multiple Choice Multiple Answer Question Functions of a Bank's H.O. include:-Correct Answer Liaison with RBI , Evolve Policies , Vigilance & ControlYour Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam LtdYour Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The BlankQuestion GIC raises funds to meet claims from ________.Correct Answer Premium collectedYour Answer Premium collected


Question Treasuries could be either those of the :-Correct Answer PSUs , Private Sector Cos. , Govt.bodies







Select The Blank









Your Answer RBI












True/False










Select The Blank


















Your Answer True







True/False


Your Answer True

Match The Following










open market




Select The Blank









Your Answer RBI












True/False










Select The Blank


















Your Answer True







True/False


Your Answer True

Match The Following










open market



Select The BlankQuestion Kisan Vikas Patra are issued through ________.Correct Answer Post Offices


Multiple Choice Single AnswerQuestion For a focus on the SSI Sector in 1986 IDBI created :-Correct Answer SIDFYour Answer SIDF


Corporates RIL, HPCL RIL, HPCL

NGOs CASP, CRY, PLAN CASP, CRY, PLAN

DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI

PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India

Multiple Choice Multiple AnswerQuestion DFHI was set up jointly by :-Correct Answer RBI , Banks , All India FisYour Answer RBI , Banks , All India Fis , SEBI

Select The BlankQuestion In addition to IFCI and ________ the Soft Loan Scheme

for modernisation is also undertaken by IDBI.


Multiple Choice Single AnswerQuestion The unorganised financial system includes :-Correct Answer Indigenous bankersYour Answer Indigenous bankers

Multiple Choice Single AnswerQuestion Investment on a monthly basis and repayment on due date

is made in :-Correct Answer Recurring depositYour Answer Term deposit account

Multiple Choice Multiple AnswerQuestion Tourism promotes :-Correct Answer Credit Card Business , International remittances ,

Travellers' ChequesYour Answer Credit Card Business , International remittances ,

Travellers' Cheques

Multiple Choice Single AnswerQuestion A company issues CP to save on : -Correct Answer Interest costYour Answer Taxes




Question A current account where the customer can withdraw morethan the balance is :-

Correct Answer Overdraft

Your Answer Overdraft

Select The BlankQuestion AFC's membership consists of commercial, cooperative

banks and DFIs including ________.Correct Answer EXIM bankYour Answer EXIM bank

Multiple Choice Multiple AnswerQuestion Functions of R.O. do not cover :-Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,

Issuing Lending PolicyYour Answer Liaison with RBI/IBA , Issuing Lending Policy

Select The BlankQuestion The ________ of NABARD covers release of refinance

without prior sanction for refinance limit.Correct Answer ARSYour Answer CFSF

Select The BlankQuestion The ________ regulation makes the banks the largest

investor in the GOI securities.Correct Answer SLRYour Answer SLR


Question Post Offices are popular for mobilizing small savings ofthe public due to :-

Correct Answer Wide network , Tax concessions , Saftey of fundsYour Answer Wide network , Tax concessions , Saftey of funds


Multiple Choice Single AnswerQuestion SIDBI commenced its operations from : -Correct Answer April 2,1990Your Answer April 2,1990

Multiple Choice Single AnswerQuestion The ultimate source of money in India is:-Correct Answer RBIYour Answer RBI

Multiple Choice Single AnswerQuestion The organised financial system includes :-Correct Answer Commercial banksYour Answer Financial companies

Multiple Choice Multiple AnswerQuestion IDA lends to poor countries :-



Correct Answer By borrowing from IBRD , By lending at 0%interest. , For periods up to ten years

Your Answer By borrowing from IBRD , By lending at 0% interest. ,

For periods up to ten years

Multiple Choice Multiple AnswerQuestion The prominent Bond issuing PSU are : -Correct Answer MTNL , NTPC , SAILYour Answer MTNL , NTPC , SAIL



Aquaculture ,Brackish Water Fisheries Fisheries

Ploughing, weeding, transplantation Seasonal Agricultural OperationsIrrigation & Drainage

Market Yards, Storage & Warehousing Agricultural MarketingAgricultural Marketing


Government.Correct Answer TrueYour Answer False

Multiple Choice Multiple AnswerQuestion The financial Assistance provided by the IMF enables

member countries to :-Correct Answer Rebuild resources , Stabilise currencies , Pay for

importsYour Answer Rebuild resources , Stabilise currencies , Undertake

specific projects

Multiple Choice Single AnswerQuestion Cetificate of deposit are issued by :-Correct Answer BanksYour Answer Banks


Question IDBI has helped in the establishment of :-Correct Answer EXIM BankYour Answer ICICI

Select The BlankQuestion NHB at present has a ________ Capital of Rs. 350 crores.Correct Answer Paid-upYour Answer Paid-up

True/FalseQuestion The Capital of NABARD is subscribed by World Bank.Correct Answer FalseYour Answer False



Correct Answer Planned SavingsYour Answer Planned Savings

True/FalseQuestion A Bill of Exchange is negotiable.Correct Answer TrueYour Answer True

True/FalseQuestion HDFC was set up by NHB.Correct Answer FalseYour Answer False

Select The BlankQuestion Mutual Funds provide the benefits of ________.Correct Answer Portfolio managementYour Answer Portfolio management


competitive bids.Correct Answer TrueYour Answer True

True/FalseQuestion Non bank financial institutions undertake fund and non

fund based activities.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Functions of R.O. of a bank include :-

Correct Answer Inspection/audit , Control on branches , Grantloans/advances

Your Answer Inspection/audit , Control on branches , Grantloans/advances

Multiple Choice Multiple AnswerQuestion Duties of an International Banking unit cover :-Correct Answer Handling foreign currency , Handling Doc.

credits , Granting lines of CreditYour Answer Maintaining SLR/CRR , Handling foreign currency ,

Handling Doc. credits , Granting lines of Credit

Select The BlankQuestion Secured Premium Notes are ________.Correct Answer DebenturesYour Answer Debentures

Select The BlankQuestion Syndication involves ________ sanction.Correct Answer In principleYour Answer Funded










of Credit



Your Answer FEDAI

True/False



Your Answer True



Your Answer False



Your Answer Power

True/False




Correct Answer True

Your Answer False

Match The Following











Correct Answer True

Your Answer True







Select The Blank







Correct Answer True

Your Answer True














Correct Answer True



Your Answer True



Your Answer False


Correct Answer RBI

Your Answer RBI













Your Answer ICICI














Correct Answer SDR

Your Answer EFF












Financial Institutions & Banking_18 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Question The Shipping Credit and Investment Company of India Ltd. haschanged its name to ________ effective from October 1992.Correct Answer SCICI Ltd Your Answer SCICI Ltd

Select The BlankQuestion AFC's membership consists of commercial, cooperative banks and

DFIs including ________.Correct Answer EXIM bankYour Answer EXIM bank


Multiple Choice Single Answer Question The lender of the last resort to the market! is the :-Correct Answer RBI

Your Answer RBI

Select The BlankQuestion One of the objectives of NHB is to augment the ________

resources for the housing sector.Correct Answer Financial Your Answer Financial


Question IDA lends to poor countries :-Correct Answer By borrowing from IBRD , By lending at 0% interest. , For eriods up to ten yearsYour Answer By borrowing from IBRD , By lending at 0% interest. , For eriods up to ten years

Multiple Choice Single Answer Question A company issues CP to save on :-Correct Answer Interest cost Your Answer Interest cost

Page 1



Financial Institutions & Banking_18True/FalseQuestion PFC has been persuading State Governments restructuring of

their power sector to make them viable.


Multiple Choice Single Answer Question The ultimate source of money in India is:-Correct Answer RBI Your Answer RBI


Multiple Choice Single Answer Question RBI was established under the:-Correct Answer RBI Act Your Answer RBI Act


Question The major area of AFC's specialisation included Crop Productionas well a! s:-

Correct Answer Crop Planning , Plant Protection , Farm Management Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer Question A member's IMF Quota determines its :-Correct Answer Financial commitment , Voting power , Drawing power Your Answer Financial commitment , Voting power , Drawing power

Select The BlankQuestion Period of Holiday Insurance is ________.Correct Answer Six months or lessYour Answer Three years

Multiple Choice Single Answer Question The underdeveloped markets are characterised by :-Correct Answer Government regulation and control Your Answer Government reg! ulation and control

Page 2



Financial Institutions & Banking_18 Multiple Choice Single Answer

Question Cetificate of deposit are issued by :-Correct Answer Banks

Your Answer Banks

True/FalseQuestion The bids for T-Bills are on price/interest basis.Correct Answer TrueYour Answer True

Multiple Choice Single Answer Question The unorganised financial system includes :-Correct Answer Indigenous bankersYour Answer Indigenous bankers

Multiple Choice Single Answer Question Long term debt instruments have a maturity of :-Correct Answer Over one year Your Answer Over one year





Multiple Choice Multiple Answer Question The unorganised financial system comprises of :-Correct Answer Money lenders , Indigenous bankers , Lending pawn

brokersYour Answer Money lenders , Indigenous bankers , Lending pawn brokers


Development.&nbs! p; Correct Answer True

Your Answer True Page 3





groups.Correct Answer Weaker sectionsYour Answer Weaker sections

Multiple Choice Single Answer Question Development Financial institutions include :-Correct Answer State financial institutionsYour Answer State financial institutions

Multiple Choice Single Answer Question Money Markets Instruments have a maturity of less than :-Correct Answer One year Your Answer One year

Select The BlankQuestion The price in financial markets is known as ________.Correct Answer &n! bsp; Rate of interest Your Answer Rate of interest





utual funds UTI UTI

Select The BlankQuestion The HDFC was set up in 1977 by the ________.Correct Answer ICICI Your Answer ICICI


Correct Answer Usance promissory note Page 4



Financial Institutions & Banking_18Your Answer Term Deposit Receipt

True/False

Question A Bill of Exchange is negotiable.Correct Answer TrueYour Answer True

Multiple Choice Single Answer Question Commercial Papers are issued by :-Correct Answer CorporatesYour Answer Corporates

Multiple Choice Single Answer Question A current account where the customer can withdraw more than

the balance is :-Correct Answer Overdraft Your Answer Overdraft



&n! bsp; Correct Answer SIDF Your Answer SIDF

True/FalseQuestion Issuance of CD attracts reserve requirements.Correct Answer False

Your Answer False

True/FalseQuestion Banks issue Guarantees on behalf of their clients.Correct Answer TrueYour Answer True


ABARD Rural Development Rural Development Page 5




FC Ltd Consultancy Consultancy


CDC Development of Cooperatives Development of Cooperatives

True/FalseQuestion Under MIGA the World bank offers various forms of Political nsurance.Correct Answer TrueYour Answer True


obligation to contribute further premium by :-Correct Answer Surrendering the policy , Converting it into paid up policy ,ssigning it in the open market

Your Answer Surrendering the policy , Converting it into paid up policy ,ssigning it in the open market

Multiple Choice Single Answer Question The organised financial system includes :-Correct Answer Commercial banksYour Answer Commercial banks




Multiple Choice Multiple Answer Question Functions of a Bank's H.O. include:-Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control


infrastructure projects are :-

Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Page 6



Financial Institutions & Banking_18igam Ltd

Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The BlankQuestion GIC raises funds to meet claims from ________.Correct Answer Premium collected Your Answer Premium collected

! Multiple Choice Multiple Answer


Multiple Choice Multiple Answer Question Under Project Finance Scheme IDBI provides assistance for :-Correct Answer New Projects , Renovation , ModernisationYour Answer New Projects , Renovation , Modernisation

Yahoo! for Good Click here to donate to the Hurricane Katrina relief effort.YAHOO! GROUPS LINKS

Visit your group "SCDL_PGDBA_Finance_2004" on the web.

To unsubscribe from this group, send an email to: [email protected]

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Page 7



Financial Institution and Banking

Topic PageNo

organised sector 2

financial services 2

Indian financial system 3commercial banks 4

development financial institutions 5


other public sector financial institutions 5

post office savings 5

mutual funds 5

non banking finanical institutions 6

Reserve bank of India 9

functions of RBI 9

banker to the government 10

bankers bank 10

supervising authority 10

exchange control authority 10

promoter of financial system 11

fiscal and monetary policy 12

open market operations 12

developmental financial institutions 17

industrial finance corporation of India 17

Industrial development bank of india - idbi 18

industrial credit and investment corporation of india Ltd - icici 19

irbi 20

sfcs 20

sidc and siics 20

state small industries development corporation (SSIDC) 21power finance corporation (PFC) 21

financial services offered by the corporation 21

term loans 21

lease financing 22

direct discounting of bills 22

guarantee services 22

loan syndication 22

short term loan 22

institutional development services 22

utility development plans 23

financial assistance for power sector studies 23

reform and restructuring related studies 23

reform and restructuring of SEBs 23

OFAP 23

export import bank of india 24

national bank of agriculture and rural development 24

genesis of NABARD 24

ARC 24

GOI 24

ACD 24

CRAFICARD 24

types of refinance facilities 26

interest rates 26

production credits 28

financing weavers 28

OSAO 29



refinance for marketing of crops 29

other refinance facilities 30

long term loans to state governments 30

investment credit ( medium and long term) refinance 31

shipping credit and investment company of India (SCICI) 33

principal activities 33

agricultural finance consultancy ltd (AFC) 34

area of specialisation 36

surveys and studies 38

National co-operative development corporation (NCDC) 38

finance and financing 39

procedure of santion / disbursal of assistance 40

promotional and development role 40

marketing 40

agricultural inputs 40

agro-processing industries 41

storage and cold storage 41

program for weaker sections 41

consumer business 41

area based integrated co-operative development project 42

national housing bank (NHB) 42

housing and urban development corporation (HUDCO) 44

housing development finance corporation (HDFC) 44

land development banks 45

banking sector 49

retail banking 49

cash credit 50

safe custody services for safe keeping of important docume 50

acceptance of deposits from non resident indians 51

difference between retail banking and wholesale banking 51

global banking 51

scheduled bank in india 52

commercial bank and cooperative bank 52

public sector banks 52

private sector banks 52

bank accounts 53

deposit account 53

lump sum investment 54

periodic investment 54

cash credit 54

loan syndication 54

repayment period 54

bill 55

discount 55

remittance 55

letter of credit 55

bank guarantee 56

negotiation 56

cash reserve ratio 56

statutory reserve ratio 57

note pertaining to reserve ratio 57

clearing operation 57

daily product basis 57

monthly product basis 58

repayment holiday 58

credit instruments 59



negotiable instruments 59

acceptance 59

credit report 59

syndication 59

custodial services 60

security 60

foreign exchange 60

securitisation 60

international banking 60

international trade 61

tourism 61

remittance of funds from one place to another place besides 61

syndication of loans global for corporate houses 61

foreign exchange management 62

profile of a bank 62

branch banking 62

different layers of banking 62

duties of an international banking department 63

exchange operations 63

administrative functions in a bank 63

administrative units 64

banking business 65

Deposit insurance and credit guarantee corporation (DICGC) 66

export credit guarantee corporation (ECGC) 67

indian money market 73

instrument 73

comercial paper 74

certificates of deposit 75

treasury bills 75

short term debentures 75

bill of exchange 75

long term debt instruments 76

government of India dated securities (GOISEC) 76

inflation linked bonds 77

zero coupon bonds 77

state government securities (state loans) 78

public sector undertaking bonds (PSU Bonds) 78

bonds of public financial institutions (PFI) 78

corporate debentures 79

Pass through certificates (PTC) 79

issuers 79

government of India and other sovereign bodies 80

banks and development financial institutions 80

public sector undertaking (PSU ) 81

private sector companies 81

government owned or quasi governement non corporate enti 82

investors 82

banks 83


provident funds 84

mutual funds 86

trusts 86

corporate treasuries 87

foreign institutional investors 87

securities trading corporation of india (STCI) 88

discount and finance house of india 88



non banking financial intermediaries 93

LIC 93

general nature of insurance companies 93

instroduction of Life Insurance corporations 93

types and structure of insurance plans 94

general insurance corporation 96

unit trust of india 98

provident / pension funds 99

post offices 99

Non bank financial companies (NBFC) 99

investment companies 100

loan companies 102

chit funds 102

NIDHIS 103

hire purchase finance companies 104

equipment leasing finance companies 104

international monetary fund (IMF) 109

quotas 109

concessional and non concessional lending 113

poverty reduction and growth facility (PRGF) 113

stand by arrangments (SBA) 114

extended fund facility (EFF) 114

supplement reserve facility (SRF) 114

contingent credit lines (CCL) 114

compensatory financing facility (CFF) 114

emergency assistance 114

special drawing rights 114

the international bank for reconstruction and development 115

world bank 115

international finance corporation 115

international development assiciation (IDA) 116

the bank for international settlements 116

regional development agencies 116

RBI 119

non performing assets 120

out of order status 121

overdue 121


reversal of income 122

appropriation of recovery in NPA 122

NPA 122


subtful assets 124

loss assets 124

account with temporary deficiancies 124

upgradation of loan accounts classified as NPA 125

account regularised near about the balance sheet date 125

agricultural advances 126

government guaranteed advances 128

restructuring rescheduling of loans 128

upgradation of restructured accounts 130

corporate debt restructuring (CDR systems) 131

CDR 131

stand still clause 138

category 2 CDR system 139

projects under implementation 142



assest classification 142


provisioning 145

availability of security / net worth of borrower / guarantor 145


post shipment supplier credit 145

export project finance 146

advances under rehabiliation approved by BIFR/TLI 146

provisioning norms general 146


leased assets 148

advances 150

advances covered by CGTSI guarantee 151


reserve for exchange rate fluctuations account (RERFA) 152

country risk 153

securitisation company (SC) / reconstruction company (RC) 154

writing off of NPA 155


purchase of agricultural implements and machinery 156

development of irrigation potential through 156

lending to priority sector 158

priority sector advances 161


indirect finance to agriculture 163

small scale and ancillary industries 166

tiny enterprises 166

small scale service and business enterprises(SSSBE) 166

industrial estates 167

KVI sector 167

small road and water transport operators (SRWTO) 167

retail trade 168

small business 168

professional and self emplyed persons 168

state sponsored organisations for scheduled castes / schedu 169

education 170

housing 170

compsumption loans 170

loans to self help groups (SHG)/NGO/MICROEDIT 170

food and agro based processing sector 171

software industry 171

venture capital 171

investments in special bonds 173

HUDCO 174

NSIC 174

NHB 174

lines of credit 174

bills rediscounting 175

deposits in rural infrastructure development (RIDF) 175

leasing and hire purchase 175

argets for priority sector lending by scheduled commercial b 177

scheduled commercial banks excluding foreign banks 177

direct / indirect agricultural lending 177

small scale industries 178

DRI advances 178

Weaker sections 178



Targets for foreign banks 178

rural infrastructure developments fund (RIDF ) 180

common guidelines for priority sector advances 183

application forms 183

mode of disbursement of loan 184

repayment schedule 184

rates of interest 184

penal interest 185

inspection charges 185

insurance against fire and other risks 185

other charges 186

photographs of borrowers 186

discretionary powers 186

machinery to look into complants 186

amendments 186



Financial Institutions & Banking_20Your Answer Term deposit account


Question Tourism promotes :-Correct Answer Credit Card Business , International remittances ,Travellers' Cheques

Your Answer Credit Card Business , International remittances ,Travellers' Cheques

Multiple Choice Single Answer Question A company issues CP to save on :-Correct Answer Interest cost Your Answer Taxes

Multiple Choice Single Answer Question A current account where the customer can withdraw more

than the balance is :-Correct Answer Overdraft Your Answer Overdraft

Select The BlankQuestion AFC's membership consists of commercial, cooperative

banks and DFIs including ________.Correct Answer EXIM bankYour Answer EXIM bank

Multiple Choice Multiple Answer Question Functions of R.O. do not cover :-Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,ssuing Lending PolicyYour Answer Liaison with RBI/IBA , Issuing Lending Policy

Select The BlankQuestion The ________ of NABARD covers release of refinance

without prior sanction for refinance limit.Correct Answer ARS Your Answer CFSF

Select The BlankQuestion The ________ regulation makes the banks the largest

investor in the GOI securities.

Correct Answer SLR Page 2



Financial Institutions & Banking_20Your Answer SLR


Question Post Offices are popular for mobilizing small savings of the public due to :-Correct Answer Wide network , Tax concessions , Saftey of fundsYour Answer Wide network , Tax concessions , Saftey of funds


Multiple Choice Single Answer Question SIDBI commenced its operations from :-Correct Answer April 2,1990Your Answer April 2,1990

Multiple Choice Single Answer Question The ultimate source of money in India is:-Correct Answer RBI Your Answer RBI

Multiple Choice Single Answer Question The organised financial system includes :-Correct Answer Commercial banksYour Answer Financial companies

Multiple Choice Multiple Answer Question IDA lends to poor countries :-Correct Answer By borrowing from IBRD , By lending at 0%

interest. , For periods up to ten yearsYour Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Multiple Answer Question The prominent Bond issuing PSU are :-Correct Answer MTNL , NTPC , SAILYour Answer MTNL , NTPC , SAIL

Match The Following

Question Correct Answer Your Answer Page 3





quaculture ,Brackish Water Fisheries Fisheries

Ploughing, weeding, transplantation Seasonal Agricultural Operationsrrigation & Drainage

arket Yards, Storage & Warehousing Agricultural Marketinggricultural Marketing


Government.Correct Answer TrueYour Answer False

Multiple Choice Multiple Answer Question The financial Assistance provided by the IMF enables

member countries to :-Correct Answer Rebuild resources , Stabilise currencies , Pay for

importsYour Answer Rebuild resources , Stabilise currencies , Undertake

specific projects

Multiple Choice Single Answer Question Cetificate of deposit are issued by :-Correct Answer BanksYour Answer Banks

Multiple Choice Single Answer Question IDBI has helped in the establishment of :-Correct Answer EXIM BankYour Answer ICICI

Select The BlankQuestion NHB at present has a ________ Capital of Rs. 350 crores.Correct Answer Paid-upYour Answer Paid-up

True/False Page 4



Financial Institutions & Banking_20Question The Capital of NABARD is subscribed by World Bank.Correct Answer FalseYour Answer False

Select The BlankQuestion In a Bank, the investment decisions are taken at _______ level.Correct Answer Head OfficeYour Answer Head Office

Multiple Choice Single Answer Question RBI is also referred to as :-Correct Answer Apex BankYour Answer Apex Bank

Multiple Choice Multiple Answer Question EXIM Bank can raise resources by:-Correct Answer Issuing bonds , Borrowing from RBI , Borrowingrom International Financial InstitutionsYour Answer Borrowing from RBI , Borrowing from International

Financial Institutions

Multiple Choice Single Answer Question PFC is committed to the integrated development of :-Correct Answer Power Your Answer Power

True/FalseQuestion PFC has been persuading State Governments restructuring

of their power sector to make them viable.Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question SIDBI provides :-Correct Answer Refinance , Rediscounting of Bills , Financial

support to SSIDC Your Answer Refinance , Financial support to SSIDC , Cash Credit acilities

True/False

Question Under MIGA the World bank offers various forms of Page 5



Financial Institutions & Banking_20 Political Insurance.


Multiple Choice Multiple Answer Question Other than Tourism, International funds remittances

comprise of :-Correct Answer Donations/Charity , Payments of Salaries ,

Payments of RoyaltyYour Answer Payments of Royalty , Travel related payments

True/FalseQuestion SCICI is a member of the OTCEI.Correct Answer TrueYour Answer False

Select The BlankQuestion HDFCs loans were linked up with________.Correct Answer Planned SavingsYour Answer Planned Savings

True/False

Question A Bill of Exchange is negotiable.Correct Answer TrueYour Answer True

True/FalseQuestion HDFC was set up by NHB.Correct Answer FalseYour Answer False

Select The BlankQuestion Mutual Funds provide the benefits of ________.Correct Answer Portfolio management Your Answer Portfolio management


competitive bids.Correct Answer TrueYour Answer True

Page 6



Financial Institutions & Banking_20True/FalseQuestion Non bank financial institutions undertake fund and nonund based activities.


Multiple Choice Multiple Answer Question Functions of R.O. of a bank include :-Correct Answer Inspection/audit , Control on branches , Grant

loans/advancesYour Answer Inspection/audit , Control on branches , Grant

l / d

financial institutions & banking_combined

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