Question No : 1

In what does an asset reconstruction company help banks?

(1) By buying the non-performing assets of banks

(2) Acts as recovery agents for banks

(3) Converts non-performing assets into performing accounts.

(4) Helps in rehabilitation of weak accounts by rescheduling the repayment plans.

(5) None of these

Question No : 2

The most active segment of the Money Market in India is which one of the following?

(1) Repo/Reverse Repo

(2) Call Money/Notice Money Market

(3)  Commercial Paper (CP) 

(4) Certificate of Deposit (CD)

(5) None of these

Question No : 3

Which among the following schemes is related exclusively to Financial Inclusion?

(1) Swawlamban

(2) Swadeshi

(3) Swabhiman

(4) SGSY

(5) None of these

Question No : 4

Which among the following is the top dividend paying company of India, as per a study done by Economic Times?

(1) ONGC

(2) TCS

(3) ITC

(4) IOC

(5) Tech Mahindra

Question No : 5

Consider the following:

(A) Deposit rates

(B) Base Rate

(C) Prime Lending Rate

Which among the above are decided by Reserve Bank of India?

(1) Only (A)

(2) Only (B)

(3) Only (C)

(4) Both (B) and (C)

(5) None of these

Question No : 6

Which among the following is the Biggest Borrower in India?

(1) Indian Government

(2) Reserve Bank of India

(3) Indian Railways

(4) State Governments

(5) Public sector Undertakings

Question No : 7

Which among the following would result in the fall in asset prices?

(1) Low Liquidity in the Economy

(2) RBI increasing the Reverse Repo Rates

(3) High Liquidity in the Economy

(4) RBI allows more banks to pay

(5) None of these

Question No : 8

Who amongst the following is NOT a famous Economist?

(1) Amartya Sen

(2) Octavior Paz

(3) Muhammad Yunus

(4) Peter A Diamond  

(5) Dale I Mortensen

Question No : 9

What is the source of income for asset reconstruction companies?

(1) The commissions paid by banks

(2) The fees charged from loan defaulters

(3) The difference in amounts recovered from the accounts less the amount paid to the bank for buying the account.

(4) The retainer fees by the banks.

(5) None of these

Question No : 10

There is frequent reference to CDR when non-performing accounts of banks are discussed. What is full form of CDR?

(1) Corporate Default Regulations

(2) Corporate Debt Restructuring

(3) Corporate Debt Regulations

(4) Civil Debt Regulations

(5) None of these

Question No : 11

How would you differentiate between a post office savings bank accounts and saving bank account?

(1) There is no cheque facility with post office savings accounts

(2) There is no ATM in post offices

(3) Banks can pay interest at rates decided by them while post offices have fixed rate of interest as decided by the government

(4) Pass book are not issued by post offices.

(5) None of these

Question No : 12

If a cheque is returned unpaid by the bank for shortage of funds what is the reason usually given?

(1) Refer to drawer

(2) Funds not available

(3) Effects not yet cleared

(4) Present again

(5) None of these

Question No : 13

Which of the following is not a legal tender in India?

(1) Soiled currency note

(2) Currency note carrying political slogans written on it

(3) Rs.1,000 currency note

(4) Rs.10 coins

(5) None of these

Question No : 14

When there is shortfall in currency notes at bank branches, whom do they approach for further supply?

(1) Currency chests

(2) The main branch of the bank in that place

(3) SBI branches

(4) All the above

(5) None of these

Question No : 15

‘Account Payee Crossing’ of cheques is meant to convey which of the following?

(1) Payment to the person named in the cheque.

(2) Payment to the person or his authorized representative.

(3) Payment to the payee named through bank clearing house.

(4) Payment to the payee named through clearing against confirmation of collecting bank.

(5) None of these

Question No : 16

With which of the following would you identity a ‘no frill’ account with?

(1) A savings account with no minimum balance requirement

(2) A savings account not having KYC requirement

(3) Fixed deposit account for one year and less

(4) Saving account opened in rural branches

(5) None of these

Question No : 17

Which of the following accounts in banks are eligible for deposit insurance?

(1) Saving account 

(2) Savings, current, recurring and fixed deposit accounts

(3) Fixed deposit accounts

(4) Fixed deposit and recurring deposit

(5) None of thes

Question No : 18

Cash Reserve Ratio is maintained in the form of _____

(1) Government Securities 

(2) Balance with Reserve Bank of India

(3) Balance with SBI 

(4) All of the above 

(5) None of these

Question No : 19

Commercial paper is ______

(1) fully secured instrument

(2) unserved money market instrument

(3) party secured paper

(4) All of the above 

(5) None of these

Question No : 20

Who are the major players in the call money markets?

(1) Banks

(2) Development Financial Institutions

(3) Insurance companies

(4) Selected Mutual Funds 

(5) All the above