April 2016 banking awareness-5

1.Which of the following is not a responsibility of Asset Liability Committee: 

A. Fixing responsibility for CMD

B. To decide on funding mix of liabilities or sale of Asset 

C. To decide on funding mix between fixed vs floating rate funds 

D. The Committee would also decide about various sources of funding 

2.Which of the Bank’s department are not necessary to include in Asset Liability Committee: 

A. Credit Resources Management 

B. Premises and Estate 

C. Funds Management/Treasury 

D. Economic Research Division 

3.SEBI is a: 

A. Statutory body 

B. Advisory body 

C. Constitutional body 

D. Non-statutory body 

4.What is ‘NIKKET’:

A. Share Price Index of Tokyo share market 

B. Name of Japanese Central Bank 

C. Japanese name of the country’s Planning Commission 

D. Foreign Exchange Market of Japan 

5.NABARD was established on the recommendation of: 

A. Public Accounts Committee 

B. Shivaraman Committee 

C. Narasimham Committee 

D. Khandelwal Committee 

6.What do we mean by Green Shoe Option: 

A. It is the shoe which is green in colour 

B. It is type of carbon credit rights that the nation have to purchase to get the right to emit carbon 

C. It gives the underwriter the right to sell investors more shares than originally planned 

D. The global warming of the earth 

7."Micro Credits" are loans: 

A. granted to distressed persons (other than farmers) to pre-pay their debt to non-institutional lenders against appropriate collateral or group security 

B. not exceeding Rs. 50,000 per borrower provided by banks 

C. both A and B 

D. none of the above 

8.Rural Infrastructure Development Fund (RIDF) is financed by: 

A. Selected group of Public Sector Banks 

B. Ministry of Rural Development 

C. Reserve Bank of India 

D. NABARD 

9.The term "Credit Management" covers: 

A. pre-sanction, appraisal, sanction, documentation, disbursement and post lending supervision and control 

B. management of all short term, medium and long term loans and on balance sheet transactions 

C. management of the credit portfolio (advances) of banks and financial institutions 

D. all of the above 

10."Ways and Means" advances are provided by Reserve Bank of India only to: 

A. Central Government 

B. State Government 

C. Both A and B 

D. None of the above 

April 2016 banking awareness-4

1.Which was the first committee recommended for establishment of Special Recovery Tribunals for Books and Financial Institution: 

A.Tiwari Committee 

B.Ojha Committee 

C.Narasimham Committee 

D.Rangarajan Committee 

2.In which year the Tiwari Committee recommanded for establishment of Special Tribunals for Banks dues recovery: 

A.1981 

B.1987 

C.1991 

D.1995 

3.Which of the following committees also recommended the set up of Debt Recovery Tribunals: 

A.Committee on Financial Sector Reforms 

B.Committee on Customer Service 

C.Committee on RRBs 

D.None of the above 

4.In which year the Recovery of Debts Due to Banks and Financial Institutions Act, was enacted: 

A.1991 

B.1993 

C.1994 

D.1995 

5.The material difference between debentures and bonds is: 

A.Debentures are governed by relevant provisions of company law 

B.Debentures are transferrable on registration 

C.Bonds are negotiable instrument governed by law of Contract 

D.All of the above 

6.The Bond can be: 

A.Zero Coupon Bond 

B.Deep Discount Bond

C.Floating Rate Bond 

D.Any of these 

7.Service Tax was introduced in India for the first time in the year: 

A.1990-91 

B.1991-92 

C.1994-95

D.1996-97 

8.As per the guidelines issued by the SEBI the Permanent Account Number (PAN) is a must for which of the following: 

A.Demat Accounts 

B.All Savings Bank Accounts 

C.All Housing Loan Accounts 

D.All Current Accounts 

9.The first Indian RRB that is sponsored by the Union Bank that has achieved core banking solution is: 

A.KheladiGrameen Bank 

B.Riddhi Siddhi Grameen Bank 

C.Rewa Siddhi Grameen Bank 

D.The Rewa-Dahej Bank 

10.The biomonthly survey that the Federal Reserve undertakes to make its monetary policy is commonly called: 

A.The Biege Book 

B.The Yellow Book 

C.The White Book 

D.The Binge Book

April 2016 banking awareness-3

1. “Apiary” is :

A. export of pearls 

B. export of fish 

C. place where bees are reared for honey 

D. export of diamonds 

2. “Claused Bill of Lading” is one which indicates: 

A. no defects in packaging or condition of goods 

B. defective condition of package and goods 

C. no documents attached to it 

D. None of the above 

3. “Cost Overrun” means: 

A. Remaining constant in Project Cost

B. escalation in Project Cost 

C. decrease in Project Cost 

D. None of the above 

4. “Dark Block” is an area: 

A. where literacy rate is below 15 per cent

B. where people below the poverty line are more than 90 per cent

C. where underground source of water is not available

D. where more than 85 per cent exploitation has taken place on the available underground water

5.“Gearing” in accounting parlance refers to : 

A .Break Even Sales 

B.Current Ratio 

C.Debt/Equity 

D DSCR 

6.“Hedging” denotes: 

A.protecting against fluctuations/uncertainly risk in forex markets 

B.credit risk assessment in respect of advances 

C.speculative buying/selling of foreign currency 

D.None of these 

7.“Order Nisi” is:

A. an order to freeze or stop all transactions of the customer in his account

B. also a direction to the banker to explain why the funds in the customer’s account so freezed not be used for payment of the judgment debt

C. both A and B

D. None of these

8.“Pomology” is associated with : 

A.mushroom cultivation 

B.study of fruit crops 

C.fish farming 

D.vegetable production 

9.“Working Capital” means: 

A.Own Capital of the Proprietor 

B.Borrowed Capital 

C.All Assets minus All Liabilities 

D.Current Assets minus Current Liabilities 

10.“Working Capital Gap” means: 

A.excess of current assets over current liabilities other than bank borrowings

B.excess of current liabilities including WCTL 

C.excess of current assets over current liabilities 

D.none of the above 

April 2016 banking awareness-2

1.What is Gilts: 

A.Securities issued by government or Treasuries 

B.They do not have any credit Risk 

C.A and B both 

D.None of the above 

1.C

2.For which of the following purpose can banks grant Working Capital Term Loan: 

A.Meeting margin for term loan 

B.Meeting margin for working capital loan 

C.Meeting contingent expenses 

D.Meeting credit needs for peak season in an industry 

2.C

3.Know Your Customers (KYC) guidelines are as per the provisions of: 

A.Section 35 of Negotiable Instruments Act, 1881 

B.Section 35A of Banking Regulation Act, 1949 

C.Section 35A of RBI Act, 1934 

D.IBA guidelines 

3.B

4.Maximum period for which a commercial paper can be issued is: 

A.3 months 

B.6 months 

C.1 year 

D.2 years 

4.C

5.One of the following is not correct in regard to Capital Market: 

A.It is a market for long term financial assets 

B.Maturity Period less than one year 

C.Dealings take place at Stock Exchange 

D.Unlimited number of players 

E.Regulated by SEBI 

5.B

6.The approaches suggested by Basel Committee for purpose of computing Credit Risk under Basel-II are: 

A.Advance Standard Approach, Internal Rating-Based Foundation Approach and Internal Risk-Based Advance Approach B. Standard Approach, Internal Rating-Based Foundation Approach, and Internal Rating-Based Advance Approach 

C.Basic Indicator Approach, Internal Rating-Based Foundation Approach, and Internal Risk-Based Advance Approach 

D.Standard Approach, Internal Rating-Based Foundation Approach and Internal Risk-Based Advance Approach 

6.B

7.The duration of Ways & Means Advances (WMAs) is: 

A.10 working days for Central Government 14 days for State Government 

B.10 consecutive working days for Central Government and 14 days for State Government 

C.14 working days for Central Government and 18 days for State Government 

D.14 consecutive working days for Central Government and 18 days for State Government 

7.B

8.What are the characteristics of Treasury Bills: 

A.These are borrowings by the Central/State Government 

B.These are in the form of Promissory Notes 

C.These are issued at a discount and for a fixed period of time 

D.All of the above 

8.D

9.Credit Guarantee Fund Trust for Small Industries has been set up on the recommendations of: 

A.Narasimham Committee

B.Ghosh Committee 

C.Chore Committee 

D.Kapoor Committee 

9.D

10.What is full form of SLR in banking term:

A.Statutory liquidity rate

B.Statutory liquidity ratio

C.Statutory liquid rate

D.Stagnent liquidity ratio

10.B

April 2016 banking awareness-1

1. State Bank of India has………circles?

A. 9 

B. 12 

C. 14

D. 16

2. A saving Bank Deposit Account is one where? 

A. Amounts are deposited and are withdrawan as per requirement of the customers

B. The deposits are made only once in a year 

C. Periodical Fixed amount are deposited month wise and withdrawals are allowed after a fixed period 

D. All of the above

3. Personal Banking includes? 

A. Deposits 

B. Insurance 

C. Investment 

D. Above all

4. Micro Finance is related to? 

A. Poor class

B. Rich class 

C. Industry 

D. None of these

5. BPO stands for? 

A. Budget Product Online 

B. Balance of Payment 

C. Business Process Outsourcing

D. None of these  

6. Which of the following is the body/agency set up by Government of India to increase the flow of foreign investment in the country? 

A. FEMA 

B. FCCB 

C. NSDL 

D. FIPB

7. National Income of India is estimated by?

A. Central Estimates Survey Committee 

B. National Sample Survey Committee 

C. Central Statistical Organization

D. Finance Ministry 

8. Net Interest Income means? 

A. Interest generated from bank's assets less interest paid on liabilities

B. Interest earned on advances 

C. Miscellaneous Income 

D. None of these

9. PannirSelvam Committee Report relates to?

A. Customer service 

B. Exposure Norms 

C. Frauds 

D. NPAs

10. Perpetual Non-Cumulative Preference Shares are part of? 

A. Tier-I Capital

B. Tier-II Capital 

C. Both A and B 

D. None of these

March 2016 banking awareness-8

1.When we discuss Negotiated Dealing System, it denotes : 

A.Settlement of Security dealing 

B.Trading in Stock Markets 

C.Trading in Government Securities 

D.None of the above 

2.Where banker pays a cheque in which amount or other particulars were chemically altered and such alteration is not visible to the naked eye, is any statutory protection available to the paying banker :

A.yes, provided the payment was a payment in due course and satisfies the condition as per Section 10 of the Negotiable Instruments Act, 1881 

B.yes, provided the alteration is not visible and the banker has paid it in good faith 

C.yes, provided the payment was made without any negligence on his part 

D.all of the above 

3.Which category of accounts are opened under Financial Inclusion:

A.Senior Citizens Deposit 

B.Super Sever Accounts 

C.No-Frill Accounts

D.SBI Vishesh

4.Which is the first bank in India to launch its interactive banking service through Dish TV:

A.SBI

B.ICICI Bank 

C.HDFC Bank 

D.Axis Bank 

5.Which is the first bank in India to produce Green Power for captive use through wind mills: 

A.HDFC

B.ICICI

C.SBI 

D.Axis Bank 

6.While opening a current account, an introductory reference is absolutely necessary: 

A.the introducer can be held responsible if the account becomes irregular 

B.this is required under directions from the Reserve Bank of India 

C.if it not taken, the bank may be held responsible for being negligent and may, therefore, lose statutory protection available under Section 131 of the Negotiable Instruments Act, 1881 

D.None of the above 

7.A cheque, payment of which was stopped by the customer, was paid through oversight: 

A.the bank is not responsible as such a responsibility was disclaimed at the time the stop order was registered 

B.the bank is responsible and cannot debit the amount of the cheque to customer’s account 

C.the bank is not responsible as the customer cannot stop the payment of a cheque which was properly issued 

D.the payment of a cheque, once issued cannot be stopped 

8.Who was the first Indian Governor of the Reserve Bank of India: 

A.C.D. Deshmukh

B.Sachindra Ray 

C.S. Mukherjee 

D.I. G. Patel 

9.There is a joint account in the names of A and B, to be operated by both of them jointly. There is a debit balance of Rs. 23,100 when the bank receives a notice of A’s death: 

A.the amount can be recovered from B only 

B.the amount can be recovered from the estate of the deceased A only 

C.the amount can be recovered from B and/or the estate of the deceased A 

D.None of the above 

10.Mohan, who will be 18 next December, approaches the bank for a loan of Rs. 1,00,000 to be repaid out of the property that will vest in him on his attaining majority: 

A. the loan may be granted provided the value of the property in question is sufficient 

B. the bank’s head office will be approached for necessary guidance 

C. the loan may be granted provided, in addition to the security of the property in question, a third party’s guarantee is arranged 

D. a minor’s agreement being void ab-initio the proposal in question will not be entertained

March 2016 banking awareness-7

1.The amendment to Section 41 of Reserve Bank of India Act, 1934 was carried out of the purpose of

A. RBI’s decision to do away payment of interest on CRR balances 

B. empowering NGOs involved in environmental protection

C. asking banks/financial institutions not to use coercive methods for recovery of loans 

D. None of the above 

2.The Bank which has entered into carbon credit trading advisory services is : 

A. ICICI Bank

B. UCO Bank

C. IDBI Bank

D. Yes Bank

3.The Base Rate system has replaced BPLR with effect from : 

A. 01.05.2010

B. 01.06.2010

C. 01.07.2010

D. 01.08.2010

4.The buyer or the importer who procures a Letter of Credit from his banker is called 

A. opener of the credit 

B. beneficiary of the credit 

C. negotiator of the credit 

D. None of the above 

5.The coverage of Right to Information Act (RTI), 2005 is : 

A. whole of India

B. whole of India, except North Eastern States 

C. whole of India, except the State of Jammu & Kashmir

D. None of the above 

6.The difference between a Term Loan and a Deferred Payment Guarantee relates to :

A. end use of funds

B. outlay of funds 

C. both A and B

D. None of these

7.The expansion for BIFR, in the context of the Indian Industry is : 

A. Board for Industrial and Financial Reconstruction 

B. Bureau for Industrial and Financial Reconstruction 

C. Board for Investment and Financial Reconstruction 

D. Bureau for Investment and Financial Reconstruction 

8.The Financial Year of RBI starts from : 

A. 1st April

B. 1st June 

C. 1st July

D. 1st December 

9.The Government has approved framework for “Mobile-linked No-Frills Accounts” by banks. Which of the following is/are correct regarding the Government’s expectations in this regard.

A. nearly 500 million should be able to access financial services through mobile phones

B. each bank to start its implementation from 31st July and complete it by 31st December 2010

C. this will be a core micro payment platform for payment transfer of benefits of Government Schemes, and financial inclusion of target groups 

D. All of the above 

10.The largest financial conglomerate of India is : 

A. HDFC Bank 

B. ICICI Bank 

C. IFCI

D. SBI

March 2016 banking awareness-6

1.What is Yield Curve Risk: 

A.It is a line of graph plotting the yield of all maturities of a particular instrument 

B.Yield curve changes its slope and shape from time to time 

C.Yield curve can be twisted to the desired direction through the intervention of RBI 

D.All of the above 

1.D

2.Currency Swaps are: 

A.common currency transactions involving borrowing and lending 

B.currency loans from a foreign country 

C.back-to-back loan 

D.None of the above 

2.D

3.Reserve Bank of India has not authorized banks to approve limits relating to: 

A.Cash Reserve Ratio 

B.Statutory Liquidity Ratio 

C.Foreign Exchange Operations 

D.None of the above 

3.D

4.Settlement risk can be avoided only if: 

A.settlements are made on real time basis 

B.there is a global settlement agency 

C.foreign exchange transactions are traded in Derivatives 

D.All of the above

4.A

5.Reverse Repo means:

A.rate RBI charges on funds lent to banks

B.rate offered to Blue chip companies 

C.a rate equal to Bank rate

D.None of the above

5.A

6.S.L. Kapoor Committee relates to:

A.financing of Small Scale Industries 

B.Agriculture financing  

C.both A and B 

D.None of the above

6.A

7.SEBI controls : 

A.Capital Market

B.Money Market

C.Both A and B

D.None of these

7.A

8. Securitization is : 

A.non-performing loans are acquired from banks and financial institutions at a discounted value and security receipts issued to them so that these loans are removed from their balance sheet enabling them to reduce the provision in respect of such loans improve profitability

B.converting the illiquid loans of banks and financial institutions by Securitization company into tradable securities, after they are acquired and sold to the investors

C.a process of acquisition of non-performing loans from banks by a Securitization company and covert them into tradable securities and sold to the investors 

D.all of the above 

8.D

9.Shares of companies notified by SEBI can be traded only when these are in ………. form : 

A.physical 

B.dematerialized 

C.either A or B

D.None of these

9.B 

10.TDR offered as security for an advance is transferred to the bank by way of : 

A.pledge 

B.charge 

C.assignment 

D.all of these
10.C