Which of the following statements is true?(1) Banks cannot accept demand and time deposits from public(2) Banks can accept only demand deposits from public(3) Banks can accept both demand and time deposits from public(4) Banks can accept both demand and time deposits from public(5) Banks can accept demand and time deposits only from government2. Which of the following is the correct statement?(1) State Bank of India is the sole authority to issue and manage currency in India(2) A nationalized bank is the sole authority to issue and manage currency in India(3) A cooperative bank is the sole authority to issue and manage currency in India(4) RBl is the sole authority to issue and manage currency in India(5) None of the above3. Interest payable on savings bank accounts is(1) not regulated by RBI(2) regulated by Sate Governments(3) regulated by Central Government(4) regulated by RBI   (5) regulated by Finance Minister4. The usual deposit accounts of banks are(1) current accounts, electricity accounts and insurance premium accounts(2) current accounts post office savings bank accounts and term deposit accounts(3) loan accounts, savings bank accounts and term deposit accounts(4) current accounts, savings bank accounts and term deposit accounts(5) current bill accounts and term deposit accounts5. Fixed deposits and recurring deposits are(1) repayable after an agreed period(2) repayable on demand(3) not repayable(4) repayable after death of depositors(5) repayable on demand or after an agreed period as per bank’s choice6. Accounts are allowed to be operated by cheques in respect of(1) both savings bank accounts and fixed deposit accounts(2) savings bank accounts and current accounts(3) both savings bank accounts and loan accounts(4) both savings bank accounts and cash accounts only(5) both Current accounts and fixed deposit accounts7. Which of the following is correct statement?(1) Normally no interest is paid on current deposit accounts(2) Interest is paid on current accounts at the same rate as term deposit accounts(3) The rate of interest on current account and savings account are the same(4) No interest is paid on any deposit by the bank(5) Savings deposits are the same as current deposits

8. Mortgage is a(1) security on movable property for a loan given by a bank(2) security on immovable property for a loan given by a bank(3) concession on immovable property for a loan given by a bank(4) facility on immovable property for a loan given by a bank(5) security on immovable property for a deposit received by a bank9. Which of the following is known as cross selling by banks?(A) Sale of a debit card to a credit card holder.(B) Sale of Insurance policy to a depositor.(C) Insurance of cash against cheque presented by a third party.(1) Only (A) (2) Only (B) (3) Only (C)(4) Both (A) and (C) (5) All (A), (B) and (C)

10. Financial inclusion means provision of(1) financial services namely, payments, remittances, savings, loans and insurance at affordablecost to persons not yet given the same(2) ration at affordable cost to persons not yet given the same(3) house at affordable cost to persons not yet given the same(4) food at affordable cost to persons not yet given the same(5) education at affordable cost to persons not yet given the same11. When a bank returns a cheque unpaid, it is called(1) payment of the cheque(2) drawing of the cheque(3) canceling of the cheque(4) dishonour of the cheque(5) taking of the cheque12. NEFT means(1) National electronic transfer  system(2) Negotiated Efficient Fund Transfer system(3) National Efficient Fund Transfer solution(4) Non Effective Fund Transfer system(5) Negotiated Electronic Foreign Transfer system13. Upper limit prescribed for RTGS transaction is(1) Rs. 1 lac (2) Rs. 2 lacs(3) Rs. 5 lacs (4) Rs. 50 lacs(5) No upper limit is prescribed14. Distribution of insurance products and insurance policies by banks as corporate agents is known as(1) General Insurance (2) Non-life Insurance(3) Bancassurance (4) Insurance Banking(5) Deposit Insurance15. In order to attract more foreign exchange the Government of India decided to allow foreigninvestment in LLP firms. What is full form of ‘LLP’ as used in this reference?(1) Local Labour Promotion

(2) Low Labour Projects(3) Limited Loan Partnership(4) Longer Liability Partnership(5) Limited Liability Partnership16. Interest on Saving bank account is now calculated by banks on(1) minimum balance during the month(2) minimum balance from 7th to last day of the month(3) minimum balance from 10th to last day of the month(4) maximum balance during the month(5) daily product basis17. Largest shareholder (in percentage shareholding) of a nationalized bank is(1) RBI (2) NABARD (3) LICI(4) Government of India(5) IBA18. When the rate of inflation increases(1) purchasing power of money  increases(2) purchasing power of money decreases(3) value of money increases(4) purchasing power of money remains unaffected(5) Amount of money circulation decreases19. A centralized databases with online connectivity to branches, internet as well asATM-network which   has been adopted by almost all major banks of our country is own as(1) Investment Banking (2) core Banking(3) Mobile Banking (4) National Banking(5) Specialized Banking20. The Unit Trust of India came into existence in(1) 1960      (2) 1962   (3) 1964     (4) 1966   (5) 196821. Which of the following is example of financial assets?(1) National Saving Certificates(2) Infrastructure Bonds (3) Indira Vikas Patra(4) Krishi Vikas Patra (5) All of the above22. Capital market is a market which deals in(1) short-term funds (2) long-term funds(3) gilt-edge securities   (4) All of the above(5) None of the above

23. Regional Rural Banks fall within supervisory purview of(1) SBI (2) RBI (3) SEBI(4) IRDA (5) None of these24. IRDA with its headquarters at ……… is the regulatory authority for all insurance companies inIndia including the LIC of India.(1) Hyderabad (2) Bengaluru (3) Mumbai

(4) Delhi (5) Chandigarh25. Mutual Funds fall within 7 supervisory purview of(1) SBI (2) RBI (3) SEBI(4) IRDA (5) None of these26. Which of the following does not come under the category of Development Banks?(1) Industrial Development Bank of India(2) Small Industries Development Bank of India(3) Industrial Investment Bank of India(4) State Finance Corporation(5) Export-import Bank27. Main financial instruments of corporate sector are(1) Shares (ii) Debentures (iii) Public Deposits(iv) Loan from InstitutionsSelect the correct answer by using of the following codes(1) i and ii (2) ii and iii (3) iii and iv(4)1, ii and iv (5) All I, ii, iii and iv28. Financial institutions(1) promote savings (2) mobilise savings (3) allocate savings among different users(4) All of the above (5) None of the above29. Which of the following is not an / example of primary securities?(1) Bills (2) Bonds (3) Shares(4) Book debts (5) New currency30. Indian Financial System / comprises of(1) Scheduled Commercial Banks(2) Non-banking Financial Institutions(3) Urban Cooperative Banks(4) All of the above (5) None of the above31. The Bombay Stock Exchange was 7 made functional as early as(1) 1870 (2) 1901 (3) 1935(4) 1951 (5) 194932. The Unit Trust of India come into existence in(1) 1964 (2) 1970 (3) 1975(4) 1980 (5) 198233. 19 July 1969, how commercial Banks were nationalised?(1) 13 (2) 14        (3) 15    (4) 16    (5) 2034. New Private Banks are being given licenses since(1) 1991 (2) 1992 (3) 1993(4) 1995 (5) 200135. The gilt-edged market refers to the market for(i) Government securities(ii) Semi-government securities(iii) Corporate securitiesSelect the correct answer(1) only i (2) i and ii (3) ii and iii

(4) i, ii and iii (5) only iii36. First share market in India established in(1) Delhi (2) Mumbai (3) Kolkata(4) Chennai (5) None of these37. Consider the following statements:(i)  Securities that have an original maturity that is greater     than one year are traded in capital markets.(ii) The best known capital market securities are stocks     and bonds.Select the correct answer(1) (i) is true and (ii) is false   (2) (i) is false and (ii) is true(3) Both are true                   (4) Both are false(5) None of the above38. Consider the following statements:(i) Securities that have an original maturity that is greater    than one year are traded in money markets.(ii) The best known money market securities are stocks     and bonds.(1) (i) is true and (ii) is false  (2) (i) is false and (ii) is true(3) Both are true                  (4) Both are false(5) None of the above

39. The primary issuers of capital market securities include(1) the Central Government   (2) the local Government(3) corporations(4) the Central and Local Governments and corporations(5) Local Government and corporations40. Which of the following is a / characteristic of a capital market instrument?(a) Liquidity (b) Marketability(3) Long maturity (4) Liquidity premium(5) All of the above41. Which one of the following is a capital market instrument?(1) A Treasury bill(2) A negotiable certificate of deposit was(3) Commercial paper(4) All of the above (5) None of the above42. T-bills are financial instruments initially sold by ________ to raise funds.(1) Commercial Banks (2) the government(3) corporations(4) agencies of the State Government(5) None of the above43. Commercial paper is a short-term security issued by ________ to raise funds.(1) the Reserve Bank of India(2) Commercial Banks(3) large and well-known companies(4) National Stock Exchange

(5) State and Local Governments44. Which of the following statements is true regarding a corporate bond?(1) A corporate callable bond gives the holder the right to exchange it for a specified number of the company’s common shares(2) A corporate debenture is a secured /‘ bond(3) A corporate indenture is a secured bond(4) A corporate convertible bond gives the holder the right to exchange the bond for a specified number of the company’s common shares(5) Holders of corporate bonds have voting rights in the company45. Which one of the following is not a money market instrument?(1) A Treasury bill   (2) A negotiable certificate of deposit(3) Commercial paper   (4) Treasury bond   (5) Repo46. Money lend for 15 days or more in Inter-bank market is called(1) call money (2) notice money(3) term money (4) All of these(5) None of these47. Money lent for one day is called(1) call money (2) notice money(3) term money (4) All of these(5) None of these48. Specified interest rate on a fixed maturity security fixed at the time of issue is called(1) market rate of interest (2) call rate(3) repo rate (4) coupon rate(5) discount rate49. Lending of scheduled Commercial Banks, on a fortnightly average basis, should notexceed  — of their capital fund.(1) 25 per cent (2) 35 per cent(3) 15 per cent (4) 50 per cent(5) None of these50. A short-term credit investment created by a non- financial firm and guaranteed by a bank to make payment is called(1) bankers acceptance market(2) collateral loan market (3) treasury bill market(4) call money market (5) repo market51. Money market securities are(1) short-term (2) low risk(3) very liquid (4) All of the above(5) 1 and 252. Money market instruments(1) are usually sold in large denominations(2) have low default risk(3) mature in one year or less(4) are characterized by all of the above(5) are characterized by 1 and 2

53. Which of the following statements about the money market are true?(1) Not all Commercial Banks deal for their customers in the secondary market(2) Money markets are used extensively by businesses both to warehouse surplus funds andto raise short-term funds(3) The single most influential participant in the US money  market is the US Treasury Department(4) All of the above are true(5) 1 and 2 of the above are true54. In the term repo, the term of the loan is greater than(1) 30 days (2) 20 days (3) 60 days(4) 90 days (5) None of these55. The money market in India consists of two sectorsnamely, the organised and the unorganised sector. Which of the following do not fall under unorganised sector?(1) RBI, Commercial Banks and SBI(2) LIC and GIC (3) Unit Trust of India(4) Indigenous Banks (5) None of the above56. Money lent for one day in the money market is known as(1) Notice Money (2) Call Money(3) Term Money (4) All of the above(5) None of the above57. Money lent for more than one day but less than 15 days in the money market is known as(1) Notice Money   (2) Call Money(3) Term Money (4) All of the above(5) None of the above58. Money lent for 15 days or more in inter-bank market is called(1) Notice Money   (2) Call Money(3) Term Money (4) All of the above(5) None of the above59. Government security that is a claim on the government and is a secure financial instrument which guarantees of both capital and interest is called(1) Coupon security (2) Gilt-edged security(3) Corporate security (4) All of the above(5) None of the above60. Which of the following types of institutions are operate in the call  money market only as lender?(1) Commercial Banks (2) Primary Dealers(3) Insurance companies (4) SBI(5) None of the above61. As per prudential norms of RBI, lending of Scheduled Commercial Banks, on a fortnight average basis, should not exceed…….. per of their capital fund.(1) 25       (2) 30        (3) 35   (4) 15    (5) 20

62. The market for bankers acceptance which or out of trade transactions, both domestic and foreign, is called(1) Mohey market (2) Capital market(3) Bankers acceptance market (4) Repo market(5) Government security market63. An unsecured loan extended by one corporate to      another is called(1) Commercial papers (2) Treasury bill(3) Inter-corporate deposits (4) Certificates of deposits(5) All of the above64. Interest is calculated on actual/365 days basis respect of the following products, except one(1) Call money (2) Notice money(3) Term money (4) GOI dated securities(5) None of the above65. An institution which accepts deposits, makes business loans, and offers related services is called(1) Saving Bank (2) Commercial Bank(3) Investment Bank (4) Development Bank(5) Central Bank66. A bank which acts as a banker of other banks is called(1) Saving Bank (2) Commercial Bank(3) Investment Bank (4) Development Bank(5) Central Bank

67. Which of the following is/are the function(s) of Exchange Banks?(i) Remitting money from one country to another country.(ii) Discounting of foreign bills.(iii) Buying and selling gold and silver(iv) Helping Import and Export Trade.Select the correct answer(1) i and ii (2) ii and iii (3) iii and iv(4) i, ii and iii (5) All i, ii, iii and iv -68. Consumer banks are usually found in(1) India and Pakistan (2) India and UK(3) USA and Germany (4) China and Russia(5) India and China69 A bank account in which a depositor can deposit his funds any number of times he likes and can also withdraw the same any  number of times he wishes is called(1) Fixed Deposit Account (2) Saving Account(3) Current Account (4) Recurring Account(5) Demat Account70. Under which type of account a specified amount is deposited every month for a specific period, say, 12, 24, 36 or 60 months?(1) Fixed Deposit Account (2) Saving Account(3) Current Account (4) Recurring Account

(5) Demat Account71. An inter-bank funds transfer system, where funds are transferred as and when the transactions are triggered, is called(1) Internet Banking (2) Mobile Banking(3) Bill Payment Service(4) Real time Gross Settlement (5) None of the above72. Which of the following is a primary function of banks?(1) Collection and payment of cheques, rent, interest, etc  on behalf of their customers(2) Buying, selling and keeping in safe custody, the       securities on behalf of their customers(3) Acting as trustees and executors of the property of   their customers on their advice(4) Remitting money from one place to the other through   bank drafts or mail or telegraphic transfers(5) Accepting deposits73. The operative guidelines for banks on Mobile Banking Transactions in India were issued in(1) 2008 (2) 2009 (3) 2010(4) 2011 (5) 200774. To use smart cards/debit cards/credit cards for the purchase of an item or for payment of a service at a merchant’s store, the card has to be swiped in a terminal known as(1) Point of Sale terminal (2) Real time terminal(3) Shopping terminal (4) All of the above(5) None of the above75. The Branding Line of Bank of Baroda is(1) International Bank of India (2) India’s International bank(3) India’s Multinational Bank  (4) World’s Local Bank(5) None of the above76. The logo of Bank of Baroda is known as(1) Sun of Bank of Baroda  (2) Baroda Sun(3) Bank of Baroda’s Rays (4) Sunlight of Bank of Baroda(5) None of the above77. Lot of Banks in India these days are offering M- Banking Facility to their customers. What is the full form of M’ in ‘M-Banking’?(1) Money  (2) Marginal (3) Message(4) Mutual Fund  (5) Mobile78. Which of the following is not the part of the Scheduled Banking structure in India?(1) Money Lenders (2) Public Sector Banks(3) Private Sector Banks (4) Regional Rural Banks(5) State Cooperative Banks79. Section 14 of Banking Regulation Act, 1949(1) prohibits a banking company from creating a charge upon any unpaid capital of the company

(2) contains a system of licensing of banks by the RBI(3) provides that the subscribed capital of a banking company should not be less than one-half of its    authorised capital(4) All of the above (5) None of the above80.     A Bank is under a statutory obligations to honour its customer’s cheques vide(1) Section 10 of the Banking Regulation Act, 1949(2) Section 3 of the RBI Act, 1934(3) Section 31 of the Negotiable Instruments Act, 1881(4) All of the above (5) None of the above81. Nationalised Banks have been permitted to offer their equity shares to the public to the extent of 49% of their capital as per amendments made in 1994 in(1) Banking Regulation Act, 1949(2) Banking Companies (Acquisition & Transfer of  Undertakings) Acts 1970/1980(3) RBI Act, 1935(4) Nationalisation of Banks Act, 1980(5) None of the above82. How many banks are presently associates of State Bank of India?(1) Eight (2) Seven (3) Six(4) Five (5) Four83. How many nationalized(1) 14   (2) 15 (3) 19     (4) 20    (5) 684. The number of Foreign Banks operating in India is(1) 20   (2) 25   (3) 28       (4) 32   (5) 3585. BCSBI stands for(1) Banking Codes and Standards Board of India(2) Banking Credit and Standards Board of India(3) Banking Codes and Service Board d India.(4) Banking Credit and Service Board India(5) None of the above86. The main Commercial segregated into(i) Payment System (ii) Financial Intermediation(iii) Financial Services(1) (i), (ii), (III) (2) (i) and (iii)(3) (i) and (ii) (4) (ii) and (iii)(5) None of the above87. The RBI has prescribed that all SCBs should maintain their SLRs in(1) Dated securities notified by RBI(2) T-Bills of Government of India(3) State Development Loans(4) All of the above (5) None of the above88. In case a depositor wishes to withdraw his deposits prematurely, banks(1) do not allow the same till maturity of the deposits

(2) charge a penalty for the same do not charge any penalty and allow the same(4) do not allow premature withdrawal(5) None of the above89. What percentage of India’s population lives in rural areas?(1) 50% to less than 55% (2) 65% to less than 70% (3) 70% to less than 75% (4) 60% to less than 65% (5) None of the above90. For filing and resolving complaints, the Ombudsman(1) charges a fee of Rs. 500/-  (2) does not charge any fee (3) charges a fee of Rs. 1500/- (4) charges a fee of Rs. 1000/(5) None of the above91. In case a depositor is a sole proprietor and holds deposits in the name of the proprietory concern as well as in the individual capacity the maximum insurance cover is available up to(1) Rs.100000 (2) Rs. 200000  (3) Rs. 500000(4) All of the above (5) None of the above92. Banks give contracts to third parties in order to manage support services like(1) help desk support   (2) credit card processing(3) call support service (4) All of the above(5) None of the above93. In case of FCNR(2) Scheme, the period for fixed deposits is(1) as applicable to resident accounts(2) for terms not less than 1 year and not more than 5 years(3) for terms not less than 2 years and not more than 6 years(4) at the discretion of the Bank (5) None of the above94. The past due debt collection policy of banks generally emphasizeson ______ at the time of recovery(1) respect to customers(2) appropriate letter authorising agents to collect recovery(3) due notice to customers(4) All of the above (5) None of the above95. According to the risk diversification principle of bank lending, diversification shouldbe in terms of(1) customer base (2) geographic location(3) nature of business (4) All of the above(5) None of the above96. Which of the following aspects are outlined by the loan policy of a bank?(1) rating standards (2) lending procedures(3) financial covenants (4) All of the above(5) None of the above97. The paid-up capital of Non-Scheduled Bank is less than(1) Rs. 5 lakh (2) Rs.10 Iakh (3) Rs. 12 lakh(4) Rs. 15 lakh (5) None of the above98. Scheduled bank “means a bank

(1) incorporated under the Companies Act, 1956(2) authorized to transact Government business(3) governed by the Banking Regulation Act, l949(4) included in the Second Schedule to the Reserve Bank    of India Act, 1934(5) All of the above99. Which of the following conditions must be fulfilled before a bank is included in theSecond Schedule to the Reserve Bank of India Act?(1) It must have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lakh(2) It must satisfy the Reserve Bank of India that its affairs are not being conducted in amanner detrimental to the interests of the depositors(3) It must be a State co-operative bank or a company as defined in the CompaniesAct, 1956 or an institution notified by the Central Government in this behalf or acorporation or a company incorporated by or under any law in force in any place outside India.(4) Only (3) (5) All of the above100. Which of the following are the scheduled banks ?(1) State Bank of Mauritius Ltd ,(2) HDFC Bank Ltd (3) ICICI Bank(4) None of the above (5) All of the above101. A foreign bank is one(1) whose most of the branches are situated outside India(2) in which at least 40% equity shares are held by non-resident Indians(3) which is incorporated outside India(4) All of the above (5) None of the above102. ‘Branch Banking’ system is one under which(1) a large bank carries on banking business through a  large networkof branches spread all over the country(2) the bank’s huge financial resources enable it to carry on its activitieson a large scale throughout the country(3) Only (2) and (3) (4) Both of the above(5) None of the above103. ‘Unit Banking System’ is that system where an individual bankundertakes the banking business(1) through a single office(2) through a few branches operating within a limited area(3) Only (2) and (3) (4) Both of the above(5) None of the above104. The Unit Banking System is prevalent in(1) Canada (2) Great Britain(3) United States of America (4) India(5) Pakistan

105. In terms of section 5 (1)(e) of the Banking Regulation Act, 1949,‘banking company’ means an company which(1) accepts deposits from the public(2) undertakes lending of money(3) transacts the business of banking India(4) accepts deposits from public a invests the same in trade    and India.(5) All of the above106. Which of the following are Scheduled Banks?(1) The fuji Bank Ltd.    (2) IDBI Bank Ltd.(3) Centurion Bank of Punjab Ltd.  (4) All of the above(5) None of the above107. Which of the following bank has been included in the second Schedule tothe RBI Act, 1934 with effect from 21st August, 2004 and thus is the latestentrant in Indian Banking as a new generation private sector bank?(1) ICICI Bank Ltd (2) HDFC Bank Ltd(3) Kotak Mahindra Bank Ltd (4) Yes Bank Ltd(5) None of the above108. Which of the following statements are correct in regard to foreign banks operating in India ?(1) Foreign banks would be allowed to open more than the existing WTOcommitment of 12 branches in a year(2) Foreign banks would be permitted to acquire a controlling  stake in a phased manner,but only in those private sector banks which are identified by the Reserve Bank for restructuring(3) The parent foreign bank of a wholly owned subsidiary would continue to hold 100 percentequity in the Indian subsidiary for a minimum prescribed period of operation(4) Only (1) and (2) (5) All of the above109. Universal Bank is one which(1) is present universally ie, in all the countries of the world(2) undertakes the work of note-issuing authority, monetary and regulatory authority, banker of the Government and equipment leasing(3) undertakes the functions of a Development Financial Institution as well as a commercial bank(4) All of the above (5) None of the above110. A universal bank may undertake multifarious financial services under one roof, eg,(1) receiving money on current or deposit accounts, and, lending of money for trade,industries, exports, agriculture,  etc(2) mortgage financing, project financing, infrastructure  lending, asset securitization,leasing, factoring, etc

(3) remittance of funds, custodial services, credit/debit cards, collection of cheques/bills, etc(4) All of the above (5) None of the above111. The commercial banking system in India consists of(1) nationalized banks and private sector banks(2) scheduled and non-scheduled banks(3) regional rural banks, co-operative banks and land development banks(4) All of the above (5) None of the above112. Which of the following are the scheduled banks?(1) The Fuji Bank Ltd  (2) lDBl Bank Ltd(3) Centurion Bank of Purijab Ltd (4) None of the above(5) All of the above113. Lord Krishna Bank Ltd. is a(1) New Private Sector Bank (2) Old Private Sector Bank(3) Public Sector Bank (4) Regional Rural Bank(5) None of the above114. What does EBT stands for?(1) <a href=http://bankingterms.wordpress.com>Electronic Belated Transfer</a>(2) Electronic Beginners’ Transaction(3) Electronic Benefit Transfer(4) Electronic Beginning Transaction (5) None of the above115. Consider the following statements(i) If the beneficiary of a cheque has lost the cheque, he can instruct the paying bankto stop payment of the cheque without waiting for the account holder’s instructions.(ii) While outsourcing, the only consideration should be cost savings. which among thestatements given above is/are correct?(1) Only (i) (2) Only (ii) (3) (i) and (ii)(4) Neither (i) nor (ii) (5) None of the above116. Telebanking service is based on(1) Virtual banking (2) Online banking(3) Voice banking (4) Core banking(5) None of the above117. Which of the following is not a Public Sector Bank?(1) State of Hyderabad (2) Central Bank of India(3) Regional Rural Bank (4) HDFC Bank(5) None of the above118. RBI generally reviews the Monetary policy for every(1) three months   (2) six months(3) nine months (4) ten months(5) None of the above119.The rate at which the RBI lends shot-term money to the banks(1) PLR   (2) CRR (3) Repo Rate

(4) Reverse Repo Rate (5) None of the above120.The Reserve Bank of India (RBI) was nationalized on(1) 1 January, 1949 (2) 1 July, 1955(3) 19 July, 1969 (4) 15 April, 1980(5) None of the above121.Which of the following acts govern the RBI functions?(1) RBI Act,1934      (2) Banking Regulation Act, 1949(3) Companies Act, 1956(4) Foreign Exchange Regulation Act, 1973(5) Foreign Exchange Management Act,122. The RBI is not expected to perform the function of(1) the banker to the government(2) accepting deposit from Commercial  Banks(3) accepting deposits from general public(4) issuer of currency(5) None of the above123. Headquarters of Reserve Bank of India is in(1) New Delhi (2) Mumbai (3) Kolkata(4) Chennai (5) Hyderabad124. The first Governor of the Reserve Bank of India       from 1 April1935 to 30 June, 1937 was(1) Sir Osborne Smth (2) Sir James Taylor(3) C.D. Deshmukh(4) Sir Benegal Rama Rao (5) KG. Ambegaonkar125.22nd and Current Governor of Reserve Bank of     India is(1) Manmohan Singh (2) C. Rangarajan(3) Bimal Jalan (4) Y.V. Reddy(5) D. Subbarao126.Which of the following rates is not decided by RBI?(1) Bank Rate (2) Repo Rate (3) Reverse Repo Rate(4) Prime Lending Rate (5) Cash Reserve Ratio127 .The Reserve Bank of India was set up on the recommendations of the(1) Narasimham Committee(2) Hilton-Young Commission(3) Mahalanobis Committee(4) Fazal Ali Commission (5) None of the above128. Which of the following formulates. implements       and monitors the monetary policy?(1) Ministry of Finance (2) RBI(3) SBI (4) ICICI Bank (5) None of the above129.Which of the following is th central banking institution India?(1) State Bank of India (2) Ministry of Finance(3) Reserve Bank of India(4) Finance Commission of India(5) None of the above

130. The Reserve Bank of India had divested its stake     in State Bank of India to(1) IDBI Bank (2) LIC (3) ICICI Bank(4) Government of India (5) None of the above131. At Present the RBI holds one per cent of shareholding in?(1) State Bank of India         (2) National Housing Bank(3) State Bank of Hyderabad(4) National Bank for Agriculture and Rural Development  (NABARD)(5) None of the above132. The number of regional offices of RBI is(1) 20 (2) 21   (3) 22 (4) 23   (5) None of these133. In India, the RBI prescribes the minimum SLR  level for ScheduledCommercial Banks in India in specified assets as a percentage of Bank’s(1) Net Demand and Time Liabilities(2) Demand Liabilities (3) Time Liability(4) None of the above (5) All of the above134 . CRR refers to the share of that banks Rural have     to maintain with RBI of their net demand and time liabilities.1) Liquid cash (2) forex reserves(3) gold (4) liquid cash (5) None of the above135.The RBI has adopted _____ Model in which mobile banking and ispromoted through business correspondents of banks.1) Bank Led (2) Band Mobile (3) Mobile(4) All of these S) None of these136. Services offered to government departments include all the above except(1) payments of salaries and pensions(2) distributing RBI bonds to government departments(3) direct and indirect tax collections(4) remittance facilities (5) None of the above137. Which of the following is/are known as Banker’s Bank?(1) SBI (2) NABARD (3) RBI(4) All of these (5) None of these138. Which of the following is the central bank of the  country?(1) RBI (2) SBI (3) RRB(4) NABARD (5) None of these139 . RBI was established on(1) April 1, 1935 (2) March 1, 1935(3) April 1, 1934 (4) March 1, 1934(5) None of these140. Which of the following is/are functions of the RBI?(I) Acts as the currency authority(ii) Controls money supply and credit(iii) Manages foreign exchange(iv) Serves as a banker to the government(1) (i) and (Ill) (2) (ii) and (iii)

(3) (i), (ii) and (iii) (4) (i), (ii), (iii) and (iv)(5) None of these141. Central Bank(1) creates (2) controls (3) restricts(4) all of these (5) None of these142  credit investment.(1) Dear (2) Cheap (3) Restricted(4) Green (5) None of these143. Quantitative instrument of RBI can be(1) bank rate policy (2) cash reserve ratio(3) statutory liquidity ratio (4) All of the above(5) None of the above144. Objective of monetary policy of RBI is to(1) control inflation(2) discourage loarding of commodities(3) encourage flow of credit into neglected sector(4) All of the above (5) None of the above145. When RBI is lender of last resort, what does it mean?(1) RBI advances necessary credit against eligible    securities(2) Commercial Banks give fund to the RBI(3) RBI advances money to public whenever there is any    emergency(4) All of the above (5) None of the above146. When RBI acts as a banker to the government, what does it do?(1) RBl keeps bank accounts of the government(2) RBI carries out government transactions(3) RBI advises the government on all financial and    monetary matters(4) All of the above (5) None of the above147. The merit of issuing notes with RBI can be seen is(1) uniformity (2) stability in currency(3) control of credit (4) All of the above(5) None of the above148. Which of the following is not an objective of financial sector reform in India?(1) Creating an efficient, productive and profitable financial sector industry(2) Preparing the financial system for increasing international competition(3) Opening the external sector in a calibrated fashion(4) Reducing the fiscal deficit(5) Promote the maintenance of financial stability even in the face of domestic andexternal environment149. The Narsimham Committee-I was set up in(1) 1990 (2) 1991 (3) 1992(4) 1998 (5) 2000150. The Narsimham Committee-I was set up to suggest some recommendations forimprovement in the

(1) efficiency and productivity of the financial institution(2) banking reform process (3) export of IT sector(4) fiscal reform process (5) None of the above151. The Narsimham Committee-Il was set up to suggest some recommendations forimprovement in the(1) efficiency and productivity of the financial institution(2) banking reform process (3) export of IT sector(4) fiscal reform process (5) None of the above152. The Narsimham Committee, 1991 has given which       of the following major recommendations(i) Reduction in the SLR and CRR.(ii) Phasing out Directed Credit Programme.(iii) The determination of the interest rate should be on the grounds of market forcessuch as the demand for and the supply of fund.(iv) The actual numbers of public sector banks need to be reduced.(v) ‘Narrow Banking Concept’ where weak banks will be allowed to place their fundsonly in short-term and risk free assets.Select the correct answer using the following codes(1) i,ii and v (2) i, iii, iv and v (3) i,ii,iii and v(4) ii, iii, iv and v (5) i, ii, iii and iv153. Which of the following is not correct about the recommendations ofNarsimham Committee Report, 1998?(1) Reduced CRR and SLR(2) Deregulation of Interest Rate(3) Establishment of the ARE Tribunal(4) Fixing Prudential Norms  (5) Capital Adequacy Norms154. Basel I, which was issued in 1988, focuses on the(1) capital adequacy of financial institutions(2) improvement of the banking sectors ability to deal with  financial and economic stress(3) technology up gradation(4) training of banking staff(5) professionalism in banking155. In 1991, SLR was as high as(1) 25% (2) 30% (3) 38.5%(4) 39.5% (5) 40%156. Narsimham Committee recommended to reduce       SLR and CRR to(1) 25% and 3.5% respectively(2) 24% and 3.5% respectively(3) 25% and 3% respectively(4) 20% and 5% respectively(5) 25% and 5% respectively

157. Which of the following is not a recommendation of the Narsimham Committee, 1991?(1) Reduction of CRR and SLR(2) Phasing out directed credit programme(3) Reduction of Capital Adequacy Ratio(4) Establishment of ARE Fund(5) Autonomy to Public Sector Bank158. Which of the following guidelines were issued by Reserve Bank of India inJanuary 1993 for the entry of Private Sector Banks in the wake of NarasimhamCommittee recommendation(1) The new bank, upon being granted license under the Banking Regulation Act by RBI,Shall be registered as a public limited company under the Companies Act, 1956(2) Its inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 shall besunject to Reserve Bank’s decision(3) Preference would be given to those banks the headquarters of which are proposed to be located in the   centre which does not have the headquarters of any other    bank(4) (1) and (3) (5) All of these159. The RBI has prescribed that a new Private Sector Bank(1) shall be subject to prudential norms in regard to income recognition, asset classification and provisioning, capital adequacy, etc.(2) shall have to observe priority sector lending targets as applicable to other domestic banks(3) will be required to open rural and semi-urban branches also as may be laid down by RBI(4) None of the above (5) All of above160. A new Private Sector Bank(1) would be governed by existing branch licensing policy where by banks could open branches including at urban/ metro centres without prior approval of RBI once capital adequacy and prudential accounting norms were satisfied(2) will be governed by the provisions of the RBI Act, 1934 the Banking Regulation Act, 1949 and other relevant statutes(3) would be subject to the directives, guidelines and advices given by the Reserve Bank of India(4) None of the above (5) All of the above161. To create a strong and competitive banking system, reform measures were initiated in early 1990s. The thrust of these reforms was on(1) increasing operation efficiency(2) strengthening supervision over banks(3) developing technological and  institutional infrastructure

(4) All of the above (5) None of the above162. What does EBT stands for?(1) Electronic Belated Transfer(2) Electric Beginners Transaction(3) Electronic Benefit Transfer(4) Electronic Beginning Transaction(5) None of the above163. On the recommendations of which of the following committee Regional Rural Banks were established?(1) Tarpore Committee           (2) Narasimham Committee(3) Karmakar Committee       (4) Kelker Committee(5) Jha Committee164. RRBs were set up on(1) 1975 (2) 1985 (2) 1991(4) 2001 (5) 1965165. The total authorized capital of RRBs was originally fixed at 1 crore which has since been raised to(1) Rs. 2crore (2) Rs. 3 crore (3) Rs. 5 crore(4) Rs. 7 crore (5) Rs. 10 crore166. At present, the formula for subscription to RRBs        capital has been fixed at(1) Central Government 50%, State Government 35% and  Sponsor Bank 15%(2) Central Government 60%, State Government 20% and       Sponsor Bank 20%(3) Central Government 30%, State Government 30% and  Sponsor Bank 40%(4) Central Government 35%, State Government 35% and     Sponsor Bank: 30%(5) Central Government 50%, State Government 25% and          Sponsor Bank: 25%167. Central Government’s contribution towards the        capital of RRBs is made through(1) NABARD (2) RBI (3) SBI(4) Central Cooperative Bank   (5) State Cooperative Bank168. The Sponsor Bank helps and aids the RRB sponsored by it by(i) Subscribing to its share capital.(ii) Training its personnel.(iii) Providing managerial and financial assistance during the   first five years or extended period.Select the correct answer by using the following codes(1 )  i  and ii (2) ii and iii (3) i and ii(4) i, ii, and iii (5) None of these169. The Sponsor Banks are empowered(1) to monitor the progress of RRBs(2) to conduct inspection and internal audit

(3) to suggest corrective measures(4) All of the above (5) None of the above170. Each of the RRBs covers districts ranging from(1) 1 to 15   (2) 2 to25 (3) 3 to 25(4) 2 to 15 (5) 1 to 5171. The main resources of RRBs are(1) share capital(2) deposits from the public(3) borrowing from Sponsor Banks(4) refinance from NABARD (5) All of the above172. RRBS are refinanced at(1) 2% below the bank rate  (2) 1% below the bank rate (3) 2% below the repo rate   (4) 1% below the repo rate(5) repo rate173. RRBs are owned by(1) Central Government         (2) State Government(3) Sponsor Bank                 (4) jointly by all of the above(5) None of the above174. The main resources of RRBs are(i) share capital.              (ii) deposits from the public.(iii) borrowing from Sponsor Banks.(iv) refinance from NABARD.       Select the correct answer(1) i and ii (2) i, ii and iii (3) iii and iv(4) ii, iii and iv (5) i, ii, iii and iv175. The number of directors on the boards of RRBs has been raised to(1) 14 (2) 15      (3) 16     (4) 17   (5) 18176. The issued/paid-up capital of a Regional Rural Bank should be(1) Rs. 60 lac(2) minimum Rs. 25 lac and maximum Rs. 100 lac(3) Rs. 80 lac (4) Rs. 90 lac (5) None of the above177. Under which category will Ofl classify Regional       Rural Banks?(1) Scheduled Commercial Banks(2) Co-operative banks           (3) Private sector banks(4) Development banks          (5) None of the above178. Paid-up share capital of Region Rural Bank is contributed by(1) Central Government only(2) State Government only(3) Central Government,  State Government and the sponsor  commercial bank in the ratio of 50: 15: 35 respectively(4) NABARD, the concerned Government and the sponsor  commercial bank in the ratio of 60:20 :20 respectively(5) All of the above179. Regional Rural Banks are empowered to transact      the business of banking as defined under

(1) Banking Regulation Act, 1949(2) Negotiable Instruments Act, 1881(3) Regional Rural Banks Act, 1976(4) The Banking Companies (Acquisition and Transfer of  Undertakings) Act, 1970(5) None of the above180. RRBs are permitted to undertake corporate agency business, without risk participation, for distribution of all types of insurance products, including health and animal insurance subject to the condition that(1) The bank should comply with the Insurance Regulatory  and Development Authority (IRDA) regulations for acting  as ‘composite corporate agent’(2) The bank should not adopt any restrictive practice of  forcing its customers to go in only for a particular    insurance company in respect of assets financed by    the bank(3) The risks, if any, involved in insurance agency should   not get transferred to the business of the bank(4) Only (2) and (3)   (5) All of the above181. Regional Rural Banks are managed by(1) Reserve Bank of India      (2) a board of directors(3) the sponsor bank            (4) the State Government(5) All of the above182. Deposits with Regional Rural Banks are insured by(1) Life Insurance Corporation of India(2) General Insurance Corporation(3) Deposit Insurance and Credit Guarantee Corporation(4) None of the above (5) All of the above183. For opening a new branch, a Regional Rural Bank requires(1) permission of NABARD(2) permission of Director, Institutional Finance(3) RBI license (4) All of the above(5) approval of DRDA184. Regional Rural Banks are classified as(1) scheduled commercial banks(2) subsidiaries of the sponsor banks(3) subsidiaries of NABARD (4) All of the above(5) None of the above185. For the purpose of Income Tax Act, 1961, the regional rural banks are treated as(1) scheduled commercial banks(2) non-scheduled banks (3) nationalised banks(4) co-operative banks (5) None of the above186. On the current account balances maintained by the Regional Rural Banks with them, the commercial banks may(1) pay interest up to 9 per cent(2) waive incidental charges(3) pay interest as applicable to savings accounts

(4) pay interest at such rates as may be mutually agreed to(5) All of the above187. All regional rural banks (RRBs) are required to      maintain their entire statutory liquidity ratio (SLR) in(1) government and other approved securities(2) current accounts with sponsor banks(3) time deposits with sponsor banks(4) gold holdings only (5) All of the above188. Which of the following statements about Regional Rural Banks are correct?(1) Sponsor banks’ travellers cheques can be issued by RRBs(2) RRBs can enter into arrangements with the sponsor banks  for providing remittance facilities to its customers(3) Where RRBs can afford the investment, they can install  lockers also(4) Only (1) and (2) (5) All of the above189.Reserve Bank has permitted RRBs for opening/        maintaining Non-Residents (Ordinary /External)        accounts in rupees and for acceptance of FCNR (B)        deposits subject to the condition that(1) The bank should have a positive net-worth and earned  net profit during the preceding year(2) The bank should not have defaulted in maintenance of  CRR/SLR requirements on more than three occasions  during the preceding two years(3) Net NPA level of the bank should not exceed five per  cent of the outstanding advances as on March 31 of the  preceding year(4) Only (2) and (3) (5) All of the above190. The Regulatory Authority Regional Rural Banks is(1) Sponsor bank (2) Central Government(3) State Government (4) RB land NABARD(5) All of the above191. Which of the following are the recommendations of the Internal Group (Chairman : Shri A V Sardesai) set up by RBI in regard to strengthening and viability of RRBs?(1) merger/amalgamation of RRBs to improve operational  viability(2) change of sponsor banks to enhance competitiveness.(3) governance and management and scope for improving profitability(4) None of the above (5) All of the above192. Which of the-following measure have been taken to enlarge resources available to RRI3s?(1) Lines of credit at a reasonable rate of interest from  sponsor banks(2) Access to inter-RRB term money/ borrowings(3) Access to repo / CBLO markets(4) All of the above (5) None of the above193. With a view to increase their resource base, RRBs       have been permitted to(1) issue of credit/debit cards and setting-up of ATMs

(2) open Currency Chests(3) handle pension and other government business as sub-  agents of those banks which are authorised to conduct  government business(4) Only (1) and (2) (5) All of the above194. Which of the following conditions are required to be fulfilled by a Regional Rural Bank to be eligible for opening of new branches?(1) It should not have defaulted in maintenance of SLR and  CRR during the last two years(2) It should be making operational profits(3) Its net worth should show improvement and its net NPA  ratio should not exceed 8 per cent(4) Only (1) and (2) (5) All of the above195. Co-operative Banks in India are registered under(i) Banking Laws (Cooperative Societies) Act, 1965.(ii) Banking Regulations Act, 1949.(iii) Companies Act, 1956.      Select the correct answer using the following codes(1) only i (2) i and ii (3) ii and iii(4) i, ii and iii (5) i, and iii196. Co-operative Development Bank was set up by(1) NABARD (2) RB! (3) SB!(4) Central Government (5) None of the above197. Co-operative banks in India do not finance rural       areas under(1) Farming (2) Cattle (3) Milk(4)Small scale units (5) Personal finance198. Which of the following is not a negotiable        instrument?   (2) semi-negotiable instrument?(1) Promissory note (2) Bill of exchange(3) Cheque (4) Bank Draft (5) Share certificate199. Those instruments which can be transferred by endorsement and delivery, but the transferee does not get a better title than that of the transferor is called(1) negotiable instruments(2) semi-negotiable instruments(3) non-negotiable instruments(4) All of the above (5) None of the above200. Transfer of any instrument to another person by signing on its back or face or on a slip of paper attached to it is known as :(1) promissory note (2) bill of lading(3) bill of exchange (4) endorsement(5) None of the above201. Which of the following is not a prerequisite for a promissory note?(1) drawn on a specified banker(2) It should be unconditional(3) It should be in writing

(4) It should be made and signed by the debtor(5) It should be payable in the currency of the country202. A bill of exchange in which a bank orders its branch or another bank, as the case may be, to pay a specified amount to a specified person or to the order of the specified person is called(1) cheque (2) bank draft (3) promissory note(4) bill of exchange (5) None of the above203. Which of the following is not a party of bill of exchange?(1) The Drawer (2) The Drawee (3) The Payee(4) The Endorser (5) None of the above204. Which of the following is/are the right(s) of customer towards his banker?(1) To receive a statement of his account from a banker(2) To sue the bank for any loss and damages(3) To sue the banker for not maintaining the secrecy of his  account(4) All of the above (5) None of the above205. When an endorser waives presentment and notice of dishonour he increases his liability. His endorsement is:(1) facultative endorsement      (2) qualified endorsement(3) alternative endorsement      (4) restrictive endorsement(5) None of the above206. All of the following are examples of Quasi Negotiable Instruments, under the Negotiable Instrument Act, 1881, except(1) Dividend Warrants (2) Share Warrants(3) Bearer Debentures (4) Promissory Note(5) None of the above207. Section 131 of Negotiable Instrument Act, 1881        extends protection to the(1) Paying Banker (2) Collecting Banker(3) Advising Banker (4) Issuing Banker(5) All of the above208. Which of the following is not considered as    negotiable instrument under the Negotiable     Instruments Act, 1881?(1) Bill of exchange (2) Promissory note(3) Share certificate(4) Cheque payable to bearer(5) Cheque with ‘not negotiable’ crossing209. Which of the following is not considered as an instrument negotiable by custom or usage?(1) Delivery orders for goods(2) Railway receipts for goods(3) Hundi(4) Government promissory notes (5) Cheques210. Under the Negotiable Instrument Act, 1881, an instrument which is incomplete in some respects, is called a/an

(1) Foreign instrument            (2) Inland instrument(3) Inchoate instrument          (4) Ambiguous instrument(5) Fictitious instrument211. Which of the following is an example of ‘restrictive crossing’?(1) Not Negotiable (2) State Bank of India(3) A/c Payee (4) Company(5) Two transverse parallel lines simply drawn across the  face of the cheque212. Which of the following is not a payment in due        course?(1) Payment made in accordance with the apparent tenor of  the instrument(2) A payment is made on an instrument before the date of  maturity(3) Payment is made to a person who is in possession of  the instrument either as a holder or a person authorised  to receive payment on behalf of holder(4) Payment made in good faith and without negligence(5) Payment made to a person in possession of an instrument payable to bearer or one that is, endorsed in blank213. When a bill is drawn, accepted or indorsed for consideration, it is called a/an(1) Accommodation bill             (2) Genuine trade bill(3) Escrow                     (4) Ambiguous instrument(5) Inchoate instrument214. Which of the following is a prerequisites for transfer of a negotiable instrument?(1) Crossing (2) Acceptance(3) Noting with a Notary (4) Blank indorsement(5) Mere delivery or indorsement and delivery215. Which of the following statements is correct about promissory note?(1) It need not be in writing(2) An implied promise is enough to constitute a valid  promissory note(3) The promise to pay must be definite and unconditional(4) The name of the pyee need not be mentioned(5) The payment can be in kind216. The legal relationship between a bank and its        customer is a kind of(i) Debtor and Creditor          (ii) Principal and Agent(iii) Pledgor and Pledgee      (iv) Mortgagor and MortgageeSelect the correct answer by using the following codes(1) i and ii (2) i, iii and iv (3) i, ii, iii and iv(4) i and ii (5) i, ii and iii217. Since, acceptance of deposits and granting of loans are the two general functions of a bank, the      relationship arising out of these two main activities is known as(1) principal and agent relationship(2) financer and finance relationship(3) bailor and bailee relationship

(4) general relationship     (5) specific relationship218. Which of the following is not an obligation of bank towards its customer?(1) Pay bills as per the instructions of the customer(2) Act as per the directions given by the customer(3) Submit periodical statements, i.e., informing customers  of the state of the account(4) Not to set off a debt owed to him by a creditor from the  credit balances held in other accounts of the borrower(5) Maintain secrecy of accounts219. Which of the following statement is not correct regarding a minor?(1) A minor is a person who has not attained the age of 18(2) Minor does not have legal capacity to enter into a contract(3) A current account in the name of minor can be opened  when guardian of the minor operates this account(4) A minor’s account should never be allowed to be overdrawn(5) In the event of death of a minor, the money will be payable  to the guardian220. Money deposited with the bank becomes a debt due(1) from the banker (2) from the customer(3) to the customer (4) Either 1 or 2(5) None of the above221. KYC means(1) Know your customer very well(2) Know your existing customer very well(3) Know your prospective customer very well(4) Satisfy yourselves about the customer’s identity and  activities(5) All of the above222. Mahesh and Suresh are friends aged 14 and 15 respectively. They want to open a joint account in your bank. You will(1) allow them to open a joint account to be operated jointly(2) allow them to open a joint account with operating   instructions either or survivor(3) allow them to open a joint account with operating   instructions former or survivor(4) allow them to open a joint account with operating   instructions any one or survivor(5) None of the above223. NABARD was set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of(1) agriculture(2) small-scale industries(3) cottage and village industries(4) handicrafts and other rural crafts(5) All of the above

224. On the recommendation of which committee       NABARD was established?(1) The Committee to Review Arrangements for Institutional   Credit for Agriculture and Rural Development(2) Narshimham Committee  (3) Chelliaha Committee(4) Kelkar Committee            (5) None of the above225. NABARD was set up with an initial capital of ‘Rs.     100 crore, which was enhanced to(1) Rs. 1,000 crore (2) Rs. 2000 crore(3) Rs. 3000 crore  (4) Rs. 4000 crore (5) Rs. 5000 crore226. On the recommendations of which committee, the NABARD was established?(1) Shivaraman Committee (2) Basel Norms(3) Narasimham Committee (4) All of the above(5) None of the above227. Which of the following statements is not correct      about NBFCs?(1) An NBFC cannot accept demand deposits(2) These institutions trade in the capital market in a variety  of assets and liabilities(3) An NBFC can issue cheques drawn on itself(4) Deposit insurance facility of Deposit Insurance and Credit   Guarantee Corporation is not available for NBFC depositors(5) NBFIs act as brokers of loanable funds and in this       capacity they intermediate between the ultimate saver   and the ultimate investor.228. The working and operations of  NBFCs are regulated by(1) SEBI (2) RBI          (3) Finance Ministry, Gol(4) IRDA (5) None of the above229. Which of the following is a kind of non-banking financial institutions?(1) Equipment leasing company(2) Hire purchase company (3) Loan company(4) Investment company (5) All of the above230. Which of the following is not correct about the acceptance of deposits by the NBFCs?(1) They are allowed to accept/renew public deposits for a  minimum period of 12 months and maximum period of 60 months(2) They cannot accept deposits repayable on demand(3) They should have minimum investment grade credit rating(4) Their deposits are not insured(5) The repayment of deposits by NBFCs is guaranteed by  RBI231. Any financial intermediary whose principal business is that of buying and selling of securities is called(1) equipment leasing company(2) hire purchase company (3) loan company(4) investment company (5) None of the above

232. Life Insurance in its modern form came to India from England in the year(1) 1818 (2) 1896 (3) 1905(4) 1907 (5) 1919233. Which of the following statements about insurance business in India is not correct?(1) Oriental Life Insurance Company was the first life   insurance company on Indian Soil(2) Bombay Mutual Life Assurance Society was the first   Indian life insurance company(3) The Life Insurance Companies Act and the Provident   Fund Act were passed 1949(4) The Insurance Regulatory and Development Authority   was established in the year 1999(5) From March 21, 2003 GIC ceased to be a holding  company of its subsidiaries234. In which year had the Insurance Regulatory and Development Authority come into force?(1) 1999 (2) 2000 (3) 2001(4) 1991 (5) 1993235. By taking out insurance cover an individual(1) reduces the cost of an accident(2) reduces the risk of an accident(3) transfers the risk to someone else(4) converts the possibility of large loss to certainty of a  small one(5) reduces the certainty of major loss236. Which of the following is an example of NBFCs?(1) Unit Trust of India(2) Life Insurance Corporation(3) General Insurance Corporation(4) All of the above (5) None of the above237. A company which pools money from investors andinvests in stocks, bonds, shares is called(1) A bank                   (2) An insurance company(3) Bank assurance               (4) Mutual fund(5) None of the above238. Bank assurance is(1) an insurance scheme to insure bank deposits(2) an insurance scheme to insure bank advances(3) a composite financial service offering both bank and  insurance products(4) a bank deposit scheme exclusively for employees of  insurance companies(5) None of the above239. Which was the first mutual fund started in India?(1) SBI Mutual Fund             (2) Indian Bank Mutual Fund(3) Kotak Pioneer Mutual Fund

(4) Unit Trust of India (5) None of the above 240. The regulator of mutual fund in India is(1) FIMMDA   (2) AMFI   (3) RBI   (4) SEBI (5) None of these241. FIMMDA’s general principles and procedures are applicable to(1) Fixed income markets (2) Money markets(3) Derivative markets (4) All of the above(5) None of the above242. Which is the principal institution for promotion, financing and development of small scale industries in the country?(1) RBI  (2) SBI (3) IDBI  (4) SIDBI   (5) None of these243. The UTI was established in(1) 1956 (2) 1964   (3) 1972(4) 1976 (5) None of these244. Which of the following mobiise/s the savings of the public to specifically invest in the industrial securities?(1) UTI (2) LIC (3) GIC(4) All of these (5) None of these245. Whcih of the following is/are ‘Term Deposits’?(1) Fixed deposits                  (2) Re-investment deposits(3) Recurring deposits            (4) None of the above(5) All of the above246. Which of the following is not correct about Non- Banking Financial Companies (NBFCs)?(1) NBFC can not accept demand deposits(2) NBFC is not a part of the payment and settlement  system(3) NBFC can issue cheques drawn on itself(4) NBFCs are fast emerging segment of Indian financial  system(5) None of these247. The working and operations of NBFCs are regulated by(1) SBl (2) RBI (3) Finance Ministry(4) All of these (5) None of these248. Which of the following is not correct aboutDevelopment Banks in India?(1) The Development Banks do not seek or accept deposits   from the public(2) They provide short term finance(3) The Development Banks promote economic  development by promoting investment and enterprise(4) Development Banks are those banks engaged in the  promotion and development of industry, agriculture, exports and other key sectors.(5) All of the above249. Which of the following is the first Development      Bankof India?(1) Industrial Finance Corporation of India(2) State Finance Corporation(3) Industrial Credit and Investment Corporation of India(4) State Industrial Development Corporations

(5) National Bank for Agriculture and Rural Development250. The Small Industries Development Bank of India      was established in(1) 1975 (2) 1980 (3) 1982(4) 1989 (5) 1990251. The erstwhile Industrial Reconstruction Bank of     India (IRBI) is now known as(1) Industrial Finance Corporation of India(2) Industrial Credit and Investment(3) Corporation of India Industrial Development Bank of  India(4) State Industrial Development Corporations(5) Industrial Investment Bank of India LTD252. National Housing Bank was established in(1) 1975 (2) 1980 (3) 1985(4) 1988 (5) 1990253. Industrial Development Bank of India was        established as a subsidiary of(1) Reserve Bank of India(2) State Bank of India(3) Industrial Credit and Investment Corporation of India(4) State Industrial Development Corporations(5) Small Industries Development Corporation Bank of India  (SIDBI) was established in 1989254. Which of the following is not an objectives of SIDBI?(1) To initiate the process of modernisation and technical   upgradation of the present units(2) To facilitate the marketing of the products of the small   scale sector in India and abroad(3) to give loans both to the private as well as public sector  undertakings in the field of commodity production,  mining and services such as hotels and transport(4) to provide special aid to labour intensive industries to  enable them to provide more employment(5) To provide refinancing factoring, leasing services to the  small sector255. ‘Development Banks’ are(1) branches of Commercial Banks, whether in private or  public sector, situated in rural areas for upliftment of  weaker sections of the society(2) financial institutions which provide long term finance to  industries(3) land development banks which provide developmental  financing to agriculture(4) (2) and (3) (5) None of the above256. SEBI was established in(1) 1993 (2) 1992 (3) 1988(4) 1990 (5) 1994