2013 Banking

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X UMESH KUMAR RAI

UMESH

UMESH KUMAR RAI

BANKING INFO

BEST OF LUCK

591 The portfolio management services offered by banks can be classified into?

A) Comprehensive and limited

B) Advisory and non-discretionary

C) Advisory and non-Advisory

D) Discriminatory and non- Discriminatory

592 Debt Recovery Tribunals accept petitions from Banks and financial institutions, only when

the amount of suit is for Rs?

A) 100,000 and above

B) 500,000 and above

C) 750,000 and above

D) 1,000,000 and above

593 Which of the following is not true about “Branch Banking”?

A) This System has a head office which control and directs the branches in multiple locations

B) Diversification of Risks are spread over an entire range of commercial assets

C) This System involves provision of banking services by a bank in the limited local area

D) Leads to uniform structure of interest rates

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594 Which of the following is not shown as an asset in the balance sheet of a Bank?

A) Investments

B) Advances

C) Cash Balances with other banks

D) Borrowings

595 The rate at which RBI rediscounts the bills of commercial banks is called as?

A) Bank Rate

B) Prime Lending rate

C) Repo rate

D) BPLR

596 In which of the following situations “Float” Occurs?

A) Depositing Local Cheque in the Bank

B) Depositing Local DD in the Bank

C) Depositing Outstation Cheque in the Bank

D) None

597 The Credit Scoring Model will have the following factors?

A) Age

B) Martial Status

C) Status of Housing

D) All of the Above

598 Which of the following does not comes under depository institutions?

A) Commercial Banks

B) Savings and Loan Associations

C) Credit Unions

D) Mutual Funds

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599 Which of the following is not part of Collection Services/Receivables Management?

A) Check Collection Services

B) Overdraft

C) Electronic Bill Payment and Presentation

D) Lock-box Service

600 Which of the following is not true about wealth management?

A) Wealth Management process is founded on the values of the client first.

B) This is an on-going process

C) This is the science of choosing investments such as stocks, bonds and derivatives

D) Wealth Manager examines the client’s financial situation then suggests a combination of

banking and investment services that best address that best addresses their unique wealth

management issues

601 Which of the following does not comes under non-depository institutions?

A) Finance Companies

B) Mutual Funds

C) Pension Funds

D) Credit Unions

602 Who of the following is not a party to the IPO?

A) Registrar of Issue

B) Investment Banker

C) Advertisement Agency

D) Registrar of Companies

603 Which of the following factors includes in the Client’s Financial Plan?

A) The Length of time the client plans to invest the funds

B) The availability of emergency cash

C) The Preferred risk level for investments choices

D) All of the Above

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604 The Paypal, Yahoo Direct, C2IT are examples of which of the following payment systems?

A) Cash Withdrawals and advances

B) P2P Payments

C) Bill Payments

D) Purchase of Goods and services

605 Which of the following is called Banker’s Acceptance Facility?

A) Under this arrangement the bank is prepared to accept the bill of exchange drawn by the

overseas Seller on them on account of their importer.

B) Under this Guarantee, the bank indemnifies the shipping company for any loss that may

be incurred by the shipping company in releasing the consignment to the consignee(importer)

without the submission of original documents

C) Under this arrangement importer’s bank undertakes the payment obligation of the

importer to the overseas seller on certain conditions

D) None Of the Above

606 Which of the following are not part of the Loan Agreement?

A) Collateral Required

B) Covenants which restrict the borrower from certain action during the period of the loan

C) Loan Sanction

D) Term of the Loan

607 Credit Appraisal focuses on which of the following factors?

A) Borrower/Management Appraisal

B) Technical Appraisal of the Project

C) Market Appraisal determining the viability of the Project

D) All of the above

608 Which of the following statements is true?

A) The licence to open branches of bank is granted by Board of Directors of that Bank

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B) The licence to open branches of bank is granted by the Finance Ministry

C) A licence to open a branch is issued by the Central Government

D) A licence to open a branch is issued by the Reserve Bank of India

609 Which of the following product is not related to bank accounts

A) ATM cards

B) Smart cards

C) Debit cards

D) Computer banking

610 Which of the Following are the part of Loan Policy?

A) Loan Sanction

B) Loan Administration

C) Lending Rates

D) All of the Above

611 In this type of LC, once issued can only be changed or cancelled with the consent of all the

parties.

A) Revocable LC

B) Irrevocable LC

C) Confirmed LC

D) Back-to-Back LC

612 In this type of LC, the confirming bank takes obligation to pay exists even if the issuing bank

defaults

A) Revocable LC

B) Irrevocable LC

C) Confirmed LC

D) Back-to-Back LC

613 In this type of LC, the original letter of credit is used as security by the exporter to openanother credit in the favor of the exporter’s own supplier

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A) Revocable LC

B) Irrevocable LC

C) Confirmed LC

D) Back-to-Back LC

614 Which of the following is not true about Lines of Credit ?

A) Lines of Credit allows a company to borrow up to a pre-fixed amount.

B) It allows the borrower to obtain a number of loans without re-applying each time as long

as the total borrowed funds does not exceed the credit limit.

C) A line of credit is secured

D) Bank usually charges some amount of fee as well as interest on these borrowings

615 Which of the following is a critical element in maintaining the safety and soundness of risk?

A) Credit Administration and Monitoring

B) Credit Appraisal

C) Sanctioning and Structuring the Loan Agreement

D) Post-Sanction Verification and Disbursal

616 LIBOR is

A) Offer rate

B) Bid rate

C) Both a and b

D) None of these

617 Type of scam which uses false e-mail return addresses to steal banking id and password

related information is known as?

A) Phishing

B) Scaming

C) Both a and b

D) None of these

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618 Which Of the Following is not Part of Assets in Balance Sheet?

A) Cash at Vault and Deposits held with other depository institutions

B) Investments in interest earning government securities

C) Loans and Lease Finances allowed to customers

D) Deposits made by various customers

619 Which of the following committee is related to ‘Micro financing’?

A) Nayak Committee

B) Tandon committee

C) Vyas Committee

D) Narasimham committee

620 Funded Services under corporate banking does not include?

A) Working Capital Finance

B) Bill Discounting

C) Export Credit

D) Letters of Credit

621 Under the norms recommended by BASEL Committee,any scheduled loan which does not

repaid in the following duration is called “NON PERFORMING LOAN” ?

A) 30 Days

B) 60 Days

C) 90 Days

D) 120 Days

622 Which rates are quoted as one unit of base currency against a number of units of a variable

currency

A) Spot rate

B) Tom rate

C) Cash rate

D) None of these

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623 The rate at which the bank quoting the price, or the ‘market maker’ will buy the base

currency from its customer

A) Bid price

B) Offer price

C) Both a and b

D) None of these

624 The rate at which the bank quoting the price, will sell the base currency to its customer.

A) Ask/offer price

B) Bid price

C) Both a and b

D) None of these

625 Which of the following is not directly involved in rural lending?

A) Cooperatives

B) RRBs

C) Commercial banks

D) SIDBI

626 Which of the following are part of Liability side in Balance Sheet?

A) Deposits made by various customers

B) Equity Capital representing long term funds that the owners have contributed to the bank

C) Borrowings of funds by the bank – non deposit borrowings from money and capital

markets

D) All of the Above

627 In the Assets of the Balance Sheet, which component consists of major portion of Bank

Folio?

A) Loans and Lease Finances allowed to customers

B) Cash at Vault and Deposits held with other depository institutions

C) Investment in interest earning government securities

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D) Deposits made by the various customers

628 Which of the following defines the “PRE-SHIPMENT” finance?

A) Extending credit facilities to overseas buyer

B) Allowing working capital facilities assisting the exporter with credit facilities enabling the

exporter to execute his export orders in time

C) Arranging to collect the payment from the overseas buyer through collection mechanism

D) Extending receivable financing against the export documents tendered by the exporter on

the overseas buyer

629 Which of the following defines the “LINE OF CREDIT”?

A) Extending credit to overseas financial institutions for the purpose of on lending to their

clients

B) Providing credit protection through in case if the buyer defaults to pay the exporter

C) Extending credit facilities to overseas buyer

D) None of the above

630 The relation ship between RBI and the Bank maintaining the currency chest is that of?

A) Debtor and Creditor

B) Principal and Agent

C) Bailor and Bailee

D) Creditor and Debtor

631 Which of the following is the Principal Liability of the Banks?

A) Deposits

B) Non Deposit Borrowings

C) Equity Capital

D) Loans

632 Short fall in fulfilling the targets of Priority sector and agricultural finance by domestic

commercial banks shall be deposited with which of the below entity?

A) RIDF

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B) SIDBI

C) RBI

D) IDBI

633 Which of the following are example of ‘OFF BALANCE SHEET’ items?

A) Standby Credit Agreements, in which a bank pledges to guarantee repaying of a

customer’s loan borrowed from a third party.

B) Interest rate swaps, in which a bank promises to exchange interest payments on debt

securities with another party

C) Loan Commitments, in which a bank pledges to lend up to a certain amount of funds until

the commitment matures

D) All of the Above

634 While quoting exchange rate, if the unit of foreign currency is kept constant and value

expressed in terms of variable home currency

A) Direct quotation

B) Indirect quotation

C) Variable quotation

D) None of these

635 When the unit of home currency is kept constant and unit of home currency is expressed in

terms of variable units foreign currency

A) Direct quotation

B) Indirect quotation

C) Variable quotation

D) None of these

636 The Principal Source of Bank’s Revenue is dependant on which of the following?

A) Income from Cash Assets

B) Miscellaneous Income

C) Loans and Securities

D) Deposit Costs

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637 LIBOR stands for?

A) London Interbank Offered Rate

B) London Intra bank Offer Rate

C) London

D) None of these

638 Banks can increase the net income by the following options?

A) Improving Tax Management to reduce tax liabilities

B) Shifting their preferences towards less costly deposits and other borrowings

C) Increasing the average yield on each asset

D) All of the Above

639 Which of the following are part of the Financial Outflows of Banks?

A) Deposit Costs

B) Non Deposit Borrowing Costs

C) Salaries and wages expenses

D) All of the Above

640 Which of the following is not an imperfect note?

A) Washed note

B) Bleached note

C) Mutilated note

D) Oiled note

641 The purpose of which is to make credit of available to essential sectors of the economy

according to national priorities?

A) Selective Credit Control (SCC)

B) Maintenance of cash reserve

C) Reserve fund

D) Comprehensive Credit Control

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642 The system of note issue followed by the RBI is?

A) Proportional reserve system

B) Minimum reserve system

C) Maximum reserve system

D) Maximum fiduciary system

643 Credit rating helps in measuring the credit risk and facilitates?

A) Considering higher credit limits

B) Making loan provisioning at an early stage

C) Accurately calculate the probable loan losses

D) Pricing of a loan

644 The rate at which the Reserve Bank of India lends to the commercial banks in very short

term against the backing of the Government securities is known as?

A) Bank rate

B) Repo rate

C) Reverse Repo

D) Discount rate

645 Six private sector banks were nationalised on April 15, 1980, whose reserves were more

than?

A) Rs 100 Crores

B) Rs. 200 crores

C) Rs 300 crores

D) Rs 400 crores

646 The Reverse Repo has the following characteristic?

A) Borrowing by RBI from banks

B) Borrowing with government security as collateral

C) Short term borrowing

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D) All of these

647 Regional Rural Banks are?

A) Private Sector scheduled commercial banks

B) Cooperative banks

C) Foreign banks

D) Public sector scheduled commercial banks

648 Banks insist on providing finance for those projects or activities only which they consider to

be viable. What is meant by viability of project?

A) Capacity to generate cash, adequate to service debt and surplus for borrower’s personal

requirement.

B) Generation of cash to meet debt liability

C) Generation of profits.

D) Generation of gross profits

649 The banker-customer relationship in credit card payment is?

A) Creditor-debtor

B) Debtor-creditor

C) Agent principal

D) Principal-agent

650 A letter of credit (LC) wherein the credit available to the customer gets reinstated after the

bill is paid is known as?

A) Back to back LC

B) Red clause LC

C) Back to front LC

D) Revolving LC

651 The base rate is set by?

A) Individual banks

B) RBI

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C) Government of India

D) None of These

652 Security printing press was established in 1982 at?

A) Kolkata

B) New Delhi

C) Bombay

D) Hyderabad

653 Indirect tax does not include?

A) Customs Duty

B) Central Excise

C) Sales Tax

D) Service Tax

654 Name the public sector lender that selected Metlife as its partner for a proposed foray into

the life insurance segment?

A) Punjab National Bank

B) State Bank of India

C) Central Bank of India

D) Bank of Baroda

655 Which Indian PSU bank in tune with its plans to expand its retail division in the UK entered

the mortgage market in the country for the first time?

A) Punjab National Bank

B) State Bank of India

C) Central Bank of India

D) Bank of Baroda

656 CMD of a Indian public sector bank is appointed by?

A) Indian Banks Association

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B) Central Government

C) RBI

D) Bank’s Board of Directors

657 Which panel was appointed to provide more recommendation on GAAR?

A) Basu Panel

B) Narashima Panel

C) Rangarajan Panel

D) Shome Panel

658 Which in the list is not considered as a monet market instrument?

A) Commercial Papers

B) Treasury Bills

C) Equity Shares

D) Repurchase agreements

659 India’s Monetary Policy is decided and implemented by?

A) FICCI

B) Reserve Bank of India

C) Finance Ministry

D) Indian Banking Association

660 Reserve Bank of India follows which system for the issue of curreny Rupee?

A) Ratio based Reserve System

B) Proportionate Reserve System

C) Maximum Reserve System

D) Minimum Reserve System

661 FATF stands for?

A) Fiscal Action Target Force

B) Financial Accountibility Task Force

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C) Financial Action Task Force

D) Financial Action Task Factor

662 Who has been appointed as the new Chairman and Managing Director of Bank of Baroda inJan 2013?

A) S. S. Mundra

B) Shubhalakshmi Panse

C) Nupur Mitra

D) Ashwani Kumar

663 Who has recently taken charge as Executive Director of Central Bank of India with effective

from 11th January 2013?

A) Raj Kumar Goyal

B) R K Dubey

C) S. S. Mundra

D) Ashwani Kumar

664 Which State Run bank has signed a MOU with Chamber of Indian Micro, Small and Medium

Enterprises (CIMSME) in Kolkata recently in Jan 2013?

A) State Bank of India

B) Bank of Baroda

C) Allahabad Bank

D) Punjab National Bank

665 Who has been appointed as the Chairman and Managing Director of Canara Bank in January

2013?

A) Raj Kumar Goyal

B) R K Dubey

C) S. S. Mundra

D) Ashwani Kumar

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666 Who has been appointed as the new Deputy Governor of the Reserve Bank of India (RBI) in

Jan 2013?

A) Urjit Patel

B) Subir Gokarn

C) K C Chakrabarty

D) Anand Sinha

667 Which Indian PSU Bank has launched mobile wallet service MobiCash Easy in Mumbai and

Delhi recently in Jan 2013?

A) State Bank of India

B) Bank of Baroda

C) Punjab National Bank (PNB)

D) IDBI Bank

668 Who has been promoted as the Executive Director of the Reserve Bank of India in Jan 2013?

A) Urjit Patel

B) V. K. Sharma

C) Deepali Pant Joshi

D) Anand Sinha

669 Recenty SBI has announced to open its second branch in China in Jan 2013. In which City, it is

going to open its second branch?

A) Sanghai

B) Tianjin

C) Beijing

D) Hong Kong

670 Which Indian Private sector bank has acquired Barclays India’s business loans portf olio for Rs

700 crore in Feb 2013?

A) Axis Bank

B) ICICI Bank

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C) Kotak Mahindra Bank

D) HDFC Bank

671 Which telecom operator along with ICICI Bank have jointly launched a mobile banking

service named as “Mobile Money” in Tamil Nadu in Feb 2013?

A) Airtel

B) Vodafone

C) Aircel

D) Reliance

672 Which Indian PSU Bank has opened five e-corners in various parts of Kolkata in February

2013? The e-corners will have various facilities including ATM, cash deposit machines, self-servicekiosk etc.

A) Bank of India

B) Union Bank of India

C) State Bank of India


673 As per the final guidelines for issuing new bank licences published by the RBI, what can bethe maximum Foreign holding after 5 years?

A) 51%

B) 49%

C) 33%

D) 45%

674 As per the final guidelines for issuing new bank licences published by the RBI, Applicant

banks must open at least _____ branches in unbanked rural areas.

A) 10%

B) 15%

C) 25%

D) 30%

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675 Which PSU bank has recently launched “Tatkal” Scheme to enable customers to transfer

money without actually opening an account?

A) Bank of India

B) Union Bank of India



676 As per RBI’s recent guideline, Microfinance institutions (MFIs) cannot charge interest rate of

more than _____.

A) 25%

B) 22%

C) 26%

D) 24%

677 Which Indian private sector Bank was awarded the Financial Institutions Syndicated Deal of

the Year 2012 in its Asia Pacific Region in Feb 2013?

A) HDFC Bank

B) ICICI Bank

C) YES Bank

D) Axis Bank

678 Which Credit card selling company has launched a service ‘ezeClick’ to enable its customers

to carry out online transactions without entering card details in Feb 2013?

A) VISA

B) American Express

C) Mastercard

D) Maestro

679 Which Indian Bank has launched an ‘Incredible India Travel Card’ in association with the

Tourism Ministry in March 2013?

A) YES Bank

B) ICICI Bank

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C) HDFC Bank

D) Axis Bank

680 Who has been appointed as the non-executive Chairman of Axis Bank in March 2013?

A) Adarsh Kishore

B) Sanjiv Misra

C) R K Dubey

D) S. S. Mundra

681 The petroleum ministry has appointed a committee under whom in March 2013 to prepare a

roadmap for enhancing domestic production of oil and gas in order to substantially reduce the

nations import dependency by 2030?

A) T L Shankar

B) J Verma

C) Sam Pitroda

D) Vijay Kelkar

682 Jim Yong Kim has recently visited India in March 2013 and had discussions with Prime

Minister Manmonah Singh, Finance Minister P Chidambaram. He is President of which InternationalOrganization?

A) United Nations

B) IMF

C) World Bank

D) SAARC

683 The Government has constituted a four-member committee headed by whom today to

remove ambiguity in the definitions of FDI and FII in March 2013?

A) N. K. Sodhi

B) Arvind Mayaram

C) S Verma

D) None of These

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684 Recently three Indian Private Sector banks faced money-laundering allegations in March

2013. Which in the list is not among those 3 banks?

A) HDFC Bank

B) ICICI Bank

C) Axis Bank

D) Yes Bank

685 Which Indian Financial entity has signed a tripartite memorandum of understanding (MoU)

with Social Fund for Development (SFD) Egypt and World Bank in March 2013?

A) NABARD

B) IFCI

C) RBI

D) SIDBI

686 Which Indian private bank has signed up as the official partner of the Indian Premier League

(IPL) in the financial services category in March 2013?

A) HDFC Bank

B) Axis Bank

C) ICICI Bank

D) Yes Bank

687 Which Global Investment Bank has announced acquisition of US bank Morgan Stanley’s

wealth management businesses in Europe, the Middle East and Africa, excluding Switzerland in

March 2013?

A) UBS

B) Credit Suisse

C) Barclays’ Bank

D) RBS

688 Which Indian bank has been conferred the National Award by the ministry of Micro, Small

and Medium Enterprises (MSME) for its performance in the implementation of Prime Minister’s

Employment Generation Programme (PMEGP) scheme for the year 2012 in April 2013?

A) Bank of Baroda

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B) Punjab National Bank


D) IDBI Bank

689 Which Indian bank won the prestigious FE India’s Best Banks Award-2012-13 for its strong

fundamentals and dynamic growth model announced in April 2013?

A) IDBI Bank

B) Karnataka Bank

C) J&K Bank

D) Yes Bank

690 Axis Bank has appointed whom as its new President – Retail Banking in April 2013 with effect

from 1st May?

A) Rajendra D Adsul

B) Ajay Bagga

C) Rajiv Anand

D) V R Kaundinya

2013 Banking

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