Financial Awareness Section 6.

Q501. Narsimham Committee recommended to reduce SLR and CLR to
(a) 25% and 3.5% respectively
(b) 24% and 3.5% respectively
(c) 25% and 3% respectively
(d) 20% and 5% respectively
(e) 25% and 5% respectively
Ans: (a) 25% and 3.5% respectively
Q502. A–card stores and provides indentification authentication, data storage and application processing applications
(a) Debit Card
(b) Smart Card
(c) Credit Card
(d) ATM Card
(e) None of these
Ans: (a) Debit Card
Q503. Which of the following is not an activity of merchant banking in India?
(a) The management of the customers securities
(b) The management of the portfolio
(c) The management of projects and counselling as well as appraisal
(d) The management of underwriting of shares and debentures
(e) None of the above
Ans:
(e)
None of the above
Q504. Inflation is caused by
(a) increase in supply of goods
(b) increase in cash with the government
(c) decrease in money supply
(d) increase in money supply
(e) All of the above
Ans: (d) increase in money supply
Q505. The World Bank has set a new goal of reducing extreme poverty to:
(a) 9 percent by 2020
(b) 6 percent by 2015
(c) 3 percent by 2025
(d) 0 percent by 2015
(e) None of these
Ans: (a) 9 percent by 2020
Q506. Match the following: List I List II A. Allahabad Bank
1. Delhi B. Central Bank of India
2. Kolkata C. Indian Overseas Bank 3. Mumbai D. Punjab National Bank
4. Chennai Codes: A B C D

(a) 2 4 3 1
(b) 2 3 4 1
(c) 4 3 2 1
(d) 4 1 3 2
(e) 1 2 3 4
Ans: (b) 2 3 4 1
Q507. Many a time we read in newspapers that some big banks have revised their lending rates to make them dearer or cheaper. Though the decision to raise the lending rates is always in the hands of the banks, normally they announce this decision of theirs
(1) immediately after the Union Budget is presented in the Lok Sabha every year
(2) when the RBI makes changes in its policy rates
(3) when the Monetary and Credit Policy of the RBI is reviewed periodically

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (2) & (3)
(e) All (1), (2) & (3)
Ans: (d) Only (2) & (3)
Q508. Which of the following agencies/ organisations has recently decided that all the stock exchanges should introduce physical settlement of equity derivatives?
(a) Reserve Bank of India
(b) Bombay Stock Exchange
(c) Registrar of Companies
(d) Securities and Exchange Board of India
(e) All of the above
Ans: (d) Securities and Exchange Board of India
Q509. Which of the following is not a prerequisite for a promissory note?
(a) Drawn on a specified banker
(b) It should be unconditional
(c) It should be in writing
(d) It should be made and signed by the debtor
(e) It should be payable in the currency of the country
Ans: (a) Drawn on a specified banker
Q510. Which of the following is the purpose of introducing ‘Know Your Customer’ norms by the banks?
(a) To bring more and more people under the banking net
(b) Identifying people who do not pay income tax
(c) To ensure that the money deposited in banks has come from genuine sources
(d) To ensure whetherthe money deposited in the bank is of an India or a foreign national
(e) None of the above
Ans: (c) To ensure that the money deposited in banks has come from genuine sources
Q511. Recent initiatives for financial inclusion in India include
I. ‘no frill’ account for retail purpose.
II. simplified KYC (Know Your Customer).
III. Credit Counselling Credit (CCC) facilities. IV. extension of smart cards.
Select the correct answer using the codes given below:

(a) I and II
(b) II and III
(c) III and IV
(d) I and IV
(e) All of these
Ans:
(e)
All of these
Q512. At present the trade between India and China is in a state of “Payment imbalance”. What does this mean in real terms? ]
(1) China does not import many items from India whereas India imports more from China
(2) China does not pay India in time and a lot of delay is reported by the exporters
(3) India wants all payments to be made in US Dollars whereas China pays in its own currency

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (a) Only (1)
Q513. Which of the following is not an objective of financial sector reform in India?
(a) Creating an efficient, productive and profitable financial sector industry
(b) Preparing the financial system for increasing international competition
(c) Opening the external sector in a calibrated fashion
(d) Reducing the fiscal deficit
(e) Promote the maintenance of financial stability even in the face of domestic and external environment
Ans: (d) Reducing the fiscal deficit
Q514. As we all know Ministry of Finance every year prepares Union Budget and presents it to the Parliament. Which of the following is / are the elements of the Union Budget?
(1) Estimates of revenue and capital receipts
(2) Ways and Means to raise the revenue
(3) Estimates of expenditure

(a) Only 1
(b) Only 2
(c) Only 3
(d) All 1, 2 & 3
(e) None of these
Ans: (d) All 1, 2 & 3
Q515. Which of the following year has registered the maximum GDP growth rate?
(a) 2005-06
(b) 2006-07
(c) 2007-08
(d) 2010-11
(e) None of these
Ans: (b) 2006-07
Q516. A foreign bank is one
(a) whose most of the branches are situated outside India
(b) in which atleast 40% equity shares are held by non-resident Indians
(c) which is incorporated outside India
(d) All of the above
(e) None of the above
Ans: (c) which is incorporated outside India
Q517. Interest rates on which of the following deposit schemes is fixed by the Reserve Bank of India?
(a) Fixed deposits above five years’ maturity
(b) Recurring deposits
(c) Savings bank
(d) Flexi Deposit scheme
(e) None of these
Ans: (c) Savings bank
Q518. SEBI was established in
(a) 1993
(b) 1992
(c) 1988
(d) 1990
(e) 1994
Ans: (c) 1988
Q519. Which of the following statements is true?
(a) Banks cannot accept demand and time deposits from public
(b) Banks can accept only demand deposits from public
(c) Banks can accept only time deposits from public
(d) Banks can accept both demand and time deposits from public
(e) Banks can accept demand and time deposits only from government.
Ans: (d) Banks can accept both demand and time deposits from public.
Q520. Which of the following is true about the National Rural Employment Guarantee Act?
(1) Itis applicable only in 100 rural districts
(2) It gives a guaranteed employment of 100 days to all those who are eligible for the same and are also willing to take it
(3) This act is applicable only for men between the age of 21-6 5. Women do not get the benefit of the same

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (b) Only (2)
Q521. What is the full form of the term ‘NPA’ as used in banking environment?
(a) Not Profitable Assets
(b) New Potential Accounts
(c) Non Performing Assets
(d) Net Performing Assets
(e) None of these
Ans: (c) Non Performing Assets
Q522. As we all know,Govt ofIndia is giving much emphasis these days on the development of Small and Medium Enterprises (SMEs). Which of the following statements reflects the importance of the SME sector in the India economy?
(1) The Govt is following a policy of keeping some items reserved for SMEs only. Hence a good number of items for local consumption come from these alone
(2) The main advantages of SMEs are reduction of regional imbalances, low investment, greater operational flexibility and low production cost. This helps in good control over prices of such items in local markets
(3) A very large number of people are employed in this sector and this sector is the second largest employer in India, after agriculture

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (d) All (1), (2) & (3)
Q523. The main objective (s) of National Housing Bank is/are
(a) to promote and develop specialised housing finance institutions for mobilisation of resources and extending finance for housing activities
(b) to extend refinance facilities to housing finance institutions and to scheduled banks
(c) to provide guarantee and underwriting facilities of housing finance institutions
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q524. How much amount has been allocated to for setting up 5 more IIMs and IITs?
(a) Rs. 500 Crore
(b) Rs. 100 Crore
(c) Rs. 150 Crore
(d) Rs. 50 Crore
(e) Rs. 1000 Crore
Ans: (a)Rs. 500 Crore
Q525. Which one of the following agencies is not included in the operation of the Kisan Credit Cards?
(a) Scheduled Commercial Banks
(b) Co-operative Banks
(c) Regional Rural Banks
(d) NABARD
(e) None of these
Ans: (d) NABARD
Q526. Match the following: List I List II A. Allahabad Bank
1. 1894 B. Oriental Bank of Commerce
2. 1943 C. Punjab National Bank 3. 1943 D. UCO Bank
4. 1865 Codes: A B C D

(a) 2 4 3 1
(b) 2 3 4 1
(c) 4 3 2 1
(d) 4 1 3 2
(e) 3 1 4 2
Ans: (c) 4 3 2 1
Q527. Small savings Scheme like National Savings Certificates, Public Provident Fund, Monthly Income Schemes are popular among the salaried people. Which financial institutions manage these schemes?
(a) Public sector banks
(b) Commercial banks
(c) Post offices
(d) Co-operative banks
(e) Private sector bank
Ans: (c) Post offices
Q528. Which of the following fall under the qualitative methods of credit control adopted by Reserve Bank of India?
(a) Selective Credit Control
(b) Credit Authorisation Scheme
(c) Moral Suasion
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q529. As per the reports in the leading newspapers. Securities and Exchange Board of India (SEBI) has asked the mutual fund industry to stop ‘Misselling’ their schemes to investors. What is ‘Misselling’ of products?
I. Misselling takes place when mutual funds are sold without telling the likely returns.
II. When agents sell the products without telling investors what are the risks involved in investing in mutual funds.
III. When agents invest somebody’s money in mutual funds without their knowledge, it is called misselling.
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) All of these
(e) None of these
Ans: (d) All of these
Q530. SWIFT is a network for banks to exchange information. What is the expanded form?
(a) Safe window for international transactions
(b) Secured worldwide international transactions
(c) Society for worldwide interbank financial telecommunications
(d) All of the above
(e) None of the above
Ans: (c) Society for worldwide interbank financial telecommunications
Q531. The approach of ‘Micro-Credit’ or ‘Banking with the poor’ is comparatively a new concept in the field of rural credit. This approach has been tried very successfully in which of the following countries?
(a) Bangladesh
(b) India
(c) China
(d) Japan
(e) None of these
Ans: (a) Bangladesh
Q532. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?
(1) It does not accept deposits
(2) It has a limited cash disbursement capacity
(3) Lack of human interface

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these are limitations
Ans: (d) All (1), (2) & (3)
Q533. Life insurance in its modern form came to India from England in the year
(a) 1818
(b) 1896
(c) 1905
(d) 1907
(e) 1919
Ans: (a) 1818
Q534. Which sectors of Indian Economy contributes largest to the gross national product?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Public sector
(e) None of these
Ans: (c) Tertiary sector
Q535. Recently, the BRICS countries firmed up plan to set up a New Development Bank (NDB) with an initial authorised capital of $100 billion. The NDB will be headquartered in ___?
(a) New Delhi
(b) Shanghai
(c) Moscow
(d) Johanesburg
(e) Brasília
Ans: (b) Shanghai
Q536. Which of the following banks has been included in the second Schedule to the RBI Act, 1934 with effect from 21st August, 2004 and thus, is the latest entrant in Indian banking as a new generation private sector bank?
(a) ICICI Bank Limited
(b) HDFC Bank Limited
(c) Kotak Mahindra Bank Limited
(d) Yes Bank Limited
(e) None of the above
Ans: (d) Yes Bank Limited
Q537. The Reserve Bank of India keeps on changing various ratios/rates frequently. Why is this done?
(1) To keep inflation under control
(2) To ensure that Indian Rupee does not lose its market value
(3) To ensure that banks do not earn huge profits at the cost of public money

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (a) Only (1)
Q538. Consider the following
I. Bank Rate Policy
II. Open Market Operations
III. Devaluation of Rupee Which of the above are called fiscal measures?

(a) Only II
(b) Both I and II
(c) Both I and III
(d) Only III
(e) None of these
Ans: (d) Only III
Q539. In terms of Section 24 of the Reserve Bank of India Act, 1934, the Reserve Bank of India may issue bank notes for the maximum denomination of
(a) Rs. 500
(b) Rs. 5000
(c) Rs. 10000
(d) Rs. 1000
(e) None of these
Ans: (c)Rs. 10000
Q540. Under which category, will you classify Regional Rural Banks (RRBs)?
(a) Scheduled commercial banks
(b) Co-operative banks
(c) Private sector banks
(d) Development banks
(e) None of the above
Ans: (a) Scheduled commercial banks
Q541. Which of the following is not a recommendation of the Narsimham Committee, 1991?
(a) Reduction of CRR and SLR
(b) Phasing out directed credit programme
(c) Reduction of Capital Adequacy Ratio
(d) Establishment of ARF Fund
(e) Autonomy of Public Sector Bank
Ans: (a) Reduction of CRR and SLR
Q542. Which of the following is known as Plastic Money?
I. Demand Draft
II. Credit Card
III. Debit Card
Select the correct answer using the codes given below

(a) Only I
(b) Only II
(c) Only III
(d) Both II and III
(e) All of the above
Ans: (d) Both II and III
Q543. The industrial Finance Corporation of India provides loans to
(a) government companies only which are in core sector ( i.e., power generation, steel, coal and cement, etc)
(b) newly established industries in backward districts
(c) industries in private sector
(d) joint stock companies and cooperative societies engaged in the manufacturing and processing of goods
(e) None of the above
Ans: (d) joint stock companies and cooperative societies engaged in the manufacturing and processing of goods
Q544. Where is the head office of the International Monetary Fund (IMF)?
(a) Paris
(b) New York
(c) Washington DC
(d) Dhaka
(e) Beirut
Ans: (c) Washington DC
Q545. Consider the following statements in regard to inclusive development:
(1) As per the RBI guidelines Public Sector Banks has to give loans to women SHGs at the interest rate of 7%
(2) The initiative is to get benefit of interest rate subvention scheme under the Damini scheme
(3) As per the RBI guidelines Public Sector Banks has to give loans to women SHGs at the interest rate of 9% Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) only 3
(e) None of these
Ans: (a) 1 only
Q546. Consider the following statements:
1. Scheduled Commercial Banks are those which have been included in the First Scheduled of RBI Act, 1934.
2. Non-scheduled Commercial Banks are those which have been included in the Second Scheduled of RBI act, 193
4. Which of the statements given above is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
(e) Can’t say
Ans: (b) Only 2
Q547. The Reserve Bank of India (RBI) recently announced a hike in some policy rates and also indicated that there may be another change in near future. Which of the following is/are considered a policy rate (s) in the hands of the RBI?
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (1) & (2)
(e) All (1), (2) & (3)
Ans: (d) Only (1) & (2)
Q548. CRR refers to the share of…….. that banks have to maintain with RBI of their net demand and time liabilities
(a) soft cash
(b) forex reserves
(c) gold
(d) liquid cash
(e) None of these
Ans: (d) liquid cash
Q549. Which of the following is not a party of Bill of Exchange?
(a) The drawer
(b) The drawee
(c) The payee
(d) The endorser
(e) None of these
Ans: (d) The endorser
Q550. Which of the following is not an organised sector in India?
(a) Nationalised Banks
(b) Regional Rural Banks
(c) Cooperative Banks
(d) Chits and Money Lenders
(e) Industrial Bank
Ans: (d) Chits and Money Lenders
Q551. Narasimham Committee recommended to reduce SLR and CRR to
(a) 25% and 3.5% respectively
(b) 24% and 3.5% respectively
(c) 25% and 3% respectively
(d) 20% and 5% respectively
(e) 25% and 5% respectively
Ans: (a) 25% and 3.5% respectively
Q552. Many times we read about ‘Hawala’ transactions in newspapers. Hawala, in India, is prohibited under the provision of which of the following Acts?
(a) Fiscal Responsibility and Budget Management Act
(b) Banking Regulation Act
(c) Financial Action Task Force Act
(d) Foreign Exchange Management Act
(e) None of these
Ans: (d) Foreign Exchange Management Act
Q553. Which of the following is/was not included in the agenda set for the Banking Reforms in India?
(a) Dismantling of administrated interest rated
(b) Measures to strengthen risk management
(c) Promulgation of SARFAESI Act
(d) Promotion of the concept of easy credit to all with a guaranteed subsidy from the government
(e) Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market
Ans: (a) Dismantling of administrated interest rated
Q554. Which is not a monetary measure to control inflation?
(a) Soft loan policy
(b) Hard credit policy
(c) Tighten the regulations of money issue
(d) To reduce the quantity of money
(e) None of these
Ans: (a) Soft loan policy
Q555. During the first nine months of the financial year 2013-14, the trade deficit in India stood at
(a) 105 billion dollar
(b) 108 billion dollar
(c) 110 billion dollar
(d) 112 billion dollar
(e) None of these
Ans: (c) 110 billion dollar
Q556. How many banks are presently nationalised banks in India?
(a) 14
(b) 15
(c) 19
(d) 20
(e) 6
Ans: (d) 20
Q557. Which of the following policies is known as Annual Policy Statement?
(a) Annual budget of GOI
(b) Credit and monetary policy of RBI
(c) Foreign trade policy of DGFT
(d) Regulations issued by SEBI
(e) None of these
Ans: (b) Credit and monetary policy of RBI
Q558. In 1991, the SLR was as high as
(a) 25%
(b) 30%
(c) 38.5%
(d) 39.5%
(e) 40%
Ans: (c) 38.5%
Q559. When a bank returns a cheque unpaid, it is called
(a) payment of the cheque
(b) drawing of the cheque
(c) cancelling of the cheque
(d) dishonor of the cheque
(e) taking of the cheque
Ans: (d) dishonor of the cheque
Q560. Which of the following will be considered as an advance to Priority Sector by the banks?
(a) Credit to farmers for agricultural purposes
(b) Loan to a group of doctors to establish a hospital in a city
(c) Loan to a sick mill owner
(d) Loans given to purchase houses in posh colonies
(e) None of these
Ans: (a) Credit to farmers for agricultural purposes
Q561. Which of the following is NOT a Public Sector Unit?
(a) HPCL
(b) Yes Bank
(c) HAL
(d) SAIL
(e) IDBI Bank
Ans: (b) Yes Bank
Q562. As we have notices, many banks are now entering into Insurance business. Why are Banks entering into this sector, particularly when many insurance companies are already there in India?
(1) By providing insurance products, banks are earning additional revenue in terms of fee/commission
(2) Banks with their huge customer base are leveraging on their existing relationship to convert customers into policyholders
(3) With increase of health-related problems, everybody wants an insurance cover, no matter how big or small it is. Banks are coming up with many attractive offers, which are also affordable

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) Only (1) & (2)
Ans:
(e)
Only (1) & (2)
Q563. Which of the following constitute the code of conduct for merchant bankers as stipulated by SEBI?
(a) Maintenance of high degree of standards of integrity and fairness in dealings
(b) Providing true and adequate information to investors and abide by the provisions of various acts, rules and regulation etc
(c) Ethical conduct of business and provision of information to customers in respect of code
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q564. What is the name of the scheme proposed for hygiene and cleanliness in the recent Union Budget 2014-15?
(a) Bharat Swach Yojna
(b) Bharat Nirmal Yojna
(c) Bharat Nirman Yojna
(d) Bharat Sudhhikaran Yojna
(e) None of these
Ans: (a) Bharat Swach Yojna
Q565. The Reserve Bank of India, released its June Mid-quarter Monetary Policy. Consider the following statements:
1. RBI left its key policy, repo rate unchanged at 7.25% in line.
2. CRR (Cash Reserve Ratio), remained at 4%. 3. Repo is the rate at which banks borrow from the central bank.
Select the correct answer using codes given below: Codes:

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
(e) None of these
Ans: (d) 1, 2 and 3
Q566. Which of the following Indian Banks is not a Nationalised Bank?
(a) Corporation Bank
(b) Dena Bank
(c) Federal Bank
(d) Vijaya Bank
(e) Oriental Bank of Commerce
Ans: (c) Federal Bank
Q567. In July 1969, how many commercial banks were nationalised?
(a) 13
(b) 14
(c) 15
(d) 16
(e) 20
Ans: (b) 14
Q568. Bank rate means
(a) the rate of interest charged by commercial banks on advances
(b) the rate at which commercial banks discount bills of exchange for their clients
(c) the rate of interest allowed by banks on the deposits
(d) the standard rate at which the Reserve Bank of India is prepared to buy or rediscount bills of exchange other commercial paper eligible for purchase under the Reserve Bank of India Act, 1934
(e) None of the above
Ans: (d) the standard rate at which the Reserve Bank of India is prepared to buy or rediscount bills of exchange other commercial paper eligible for purchase under the Reserve Bank of India Act, 1934
Q569. A customer wishes to purchase some US dollars in India. He/She should go to
(a) Public Debt Division of the RBI
(b) American Express Bank
(c) RBI or any branch of a bank which is authorised for such business
(d) Ministry of Foreign Affairs
(e) None of the above
Ans: (c) RBI or any branch of a bank which is authorised for such business
Q570. Who is the appointing authority for the banking ombudsman?
(a) RBI
(b) Finance Ministry
(c) PMO
(d) Team of PM, Finance Minister and RBI Governor
(e) A and C
Ans: (a) RBI
Q571. Many a time we read about the priority sector in newspapers. Which of the following is/are considered segment (s) of Priority Sector in India?
(1) Agriculture
(2) Small Scale Industry
(3) Textile Industry

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans:
(e)
None of these
Q572. As we all know, more and more countries/ organisations are now going for Non-Cash Transactions and accordingly Banks have launched many new products in the market for the same. Which of the following products is a non-cash transaction product?
(a) Only ATM Card
(b) Only Credit Card
(c) Only Prepaid Card
(d) Only Debit Card
(e) All are non-cash transaction products.
Ans:
(e)
All are non-cash transaction products.
Q573. In case of a debt taken by a married woman, her husband will be liable for debt only if the debt is taken
(a) with his consent or authority
(b) for the supply of necessaries of life to the wife, in case the husband defaults in supplying the same to her
(c) Both A and B
(d)Either A or B
(e)None
Ans: (c) Both A and B
Q574. The main source of National Income of India is
(a) service sector
(b) agriculture
(c) industrial sector
(d) trade sector
(e) None of these
Ans: (a) service sector
Q575. As of 2014, the BRICS nations represented ____ per cent of the World economy. Fill the blank with correct option?
(a) 10
(b) 15
(c) 18
(d) 20
(e) 19
Ans: (c) 18
Q576. The word ‘Bank’ is derived from
(a) German word ‘back’ which means a joint stock fund’
(b) Italian word ‘banco’
(c) words ‘bancus’ or banque’ which means ‘a bench’
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q577. Very often we read in the newspapers about various measures taken up to control the flow of the capital in the Indian markets. Who amongst the following is/are the regulators who can control the flow of the same in India?
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Both (2) & (3)
(e) Both (1) & (2)
Ans: (b) Only (2)
Q578. Prior approval (as also a licence) of RBI is required for opening
(a) personal banking branches
(b) merchant banking branches
(c) asset recovery branches
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q579. The minting of rupee coin is governed by
(a) Coinage Act, 1906
(b) Reserve Bank of India Act, 1934
(c) Banking Regulation Act, 1949
(d) Currency Act, 1902
(e) None of the above
Ans: (a) Coinage Act, 1906
Q580. Regional Rural Banks (RRBs) are managed by
(a) Reserve Bank of India
(b) a Board of Directors
(c) the sponsor bank
(d) the State Government
(e) All of the above
Ans: (b) a Board of Directors
Q581. Which of the following banks have entered capital market in the wake of Narasimham Committee recommendations?
(a) State Bank of India
(b) Oriental Bank of Commerce
(c) Bank of India
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q582. Which of the following is a leading electronic payment technology firm? (The logo of the firm can be seen printed on credit cards/ ATM centres etc
(a) Visa
(b) Max
(c) BSE
(d) Sensex
(e) SWAP
Ans: (a) Visa
Q583. When a loan is granted by a bank for purchase of white goods it is called
(a) Consumption loan
(b) White goods loan
(c) Consumer durable loan
(d) All of these
(e) None of these
Ans: (c) Consumer durable loan
Q584. Which of the following statements is true about International Monetary Fund (IMF)?
(a) It provides ways and means funds to member countries
(b) It is an agency of the World Bank and is situated in Prague
(c) It makes all the rules and regulations in relation to the world trade between the nations
(d) On becoming its member, countries get finance as temporary balance of payment needs
(e) It is an organisation floated by the members of NATO and caters to the need of those countries only.
Ans: (d) On becoming its member, countries get finance as temporary balance of payment needs.
Q585. Consider the following statements regarding medium term note (MTN) programme:
(1) Medium term note (MTN) is a debt bond which usually matures in 5 to 10 years
(2) Recently Union Bank of India has hit the global debt market to raise around USD 500 million through bond issuance
(3) Medium term note (MTN) is a debt and which usually matures in 7 to 12 years Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) only 3
(e) None of these
Ans: (c) Both 1 and 2
Q586. A scheduled bank is the one which is included in the
(a) II Schedule of Banking Regulation Act
(b) II Schedule of Constitution
(c) II Schedule of RBI Act
(d) All of these
(e) None of these
Ans: (c) II Schedule of RBI Act
Q587. The rate on which banks borrow from the RBI is called……….
(a) SLR
(b) CRR
(c) Interest Rate
(d) Bank Rate
(e) Repo Rate
Ans:
(e)
Repo Rate
Q588. In India, RBI prescribes the minimum SLR level for scheduled commercial banks in India, in specified assets as a percentage of bank’s
(a) net demand and time liabilities
(b) demand liability
(c) time liability
(d) All of the above
(e) None of the above
Ans: (a) net demand and time liabilities
Q589. In terms of Section 5
(1) (5) of the Banking Regulation Act, 1949, a ‘banking company’ means any company which

(a) accepts deposits from the public
(b) undertakes lending of money
(c) transacts the business of banking in
(d) All of the above
(e) None of the above
Ans: (c) transacts the business of banking in
Q590. Banks recover term loan from the parties in EMIs. What the letter ‘E’ represents in the term?
(a) Easy
(b) Effective
(c) Equated
(d) Essential
(e) Economical
Ans: (c) Equated
Q591. Which of the following is incorrect about Non-banking Financial Companies (NBFCs)?
(a) NBFC cannot accept demand deposits
(b) NBFC is not a part of the payment and settlement system
(c) NBFC can issue cheques drawn on itself
(d) NBFCS are fast emerging segment of Indian financial system
(e) None of the above
Ans: (c) NBFC can issue cheques drawn on itself
Q592. Many times we read about ‘Hawala’ transactions in newspapers. Hawala, in India, is prohibited under the provision of
(d) which of the following Acts?

(a) Fiscal Responsibility and Budget Management Act
(b) Banking Regulation Act
(c) Financial Action Task Force Act
(d) Foreign Exchange Management Act
(e) None of the above
Ans: (d) Foreign Exchange Management Act
Q593. Which financial institution established by IBRD-American Mission, in 1955?
(a) IDBI
(b) ICICI
(c) SBI
(d) RRB
(e) PNB
Ans: (b) ICICI
Q594. Which is the monetary measure to control inflation?
(a) Increase in taxation
(b) Decrease in taxation
(c) Soft credit policy
(d) Hard credit policy
(e) None of these
Ans: (d) Hard credit policy
Q595. During the first nine months of the financial year 2013-14, India’s exports registered the growth of
(a) + 2.98%
(b) + 5.94%
(c) – 4.76%
(d) – 5.94%
(e) None of these
Ans: (b) + 5.94%
Q596. Which of the following are the scheduled banks?
(a) State Bank of Mauritius Limited
(b) HDFC Bank Limited
(c) ICICI Bank
(d) None of the above
(e) All of the above
Ans:
(e)
All of the above
Q597. Which of the following Acts was framed specially to deal more effectively with the problem of Non-Performing Assets in banking system?
(a) Companies Act
(b) Banking Regulation Act
(c) Foreign Exchange Management Act
(d) Industrial Dispute Act
(e) SARFAESI Act
Ans:
(e)
SARFAESI Act
Q598. Shares of companies notified by SEBI can be traded only when these are in……. form
(a) physical
(b) dematerialised
(c) Either A and B
(d) centralised
(e) None of these
Ans: (b) dematerialised
Q599. The process by which a life insurance policyholder can transfer all rights, title and interest- under a policy contract to a third person is known as
(a) Assignment of the policy
(b) Hypothecation of the policy
(c) Reinvestment of the policy
(d) Negotiation of the policy
(e) Nomination of the policy
Ans: (a) Assignment of the policy
Q600. In economics it is generally believed that the main objective of a Public sector financial company like Bank is to…………….
(a) Employ more and more people
(b) Maximize total profits
(c) Maximize total production
(d) Provide financial service to the people of the nation of its origin across the country
(e) Sell the goods at subsidized cost.
Ans: (d) Provide financial service to the people of the nation of its origin across the country.

Financial Awareness Section 7.

Q601. As per the target for the 11th Five Year Plan, educated unemployment is to be reduced to which of the following levels?
(a) 9%
(b) 6%
(c) 7%
(d) 8%
(e) 5%
Ans:
(e)
5%
Q602. One of the key factors that provide impetus to strong growth is Interest Rates. How do interest rates contribute to the growth of economy, particularly when these are lowered down?
(1) It gives corporations the opportunity to prepay high-cost debts and replace them with fresh funds raised at lower rates
(2) Banks use this opportunity to maximize profits on their treasury operations and these excess profits are used to clean their Balance Sheets by making higher provisions for NPAs or sticky loans
(3) The Govt also gets benefited as it can borrow funds from open market at low interest rates and bridge its fiscal deficit

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans:
(e)
None of these
Q603. Which of the following public sector banks is regarded as being the first to launch its own Mutual Fund Scheme?
(a) SBI
(b) PNB
(c) Bank of India
(d) Canara Bank
(e) ICICI Bank
Ans: (a) SBI
Q604. How much amount has been allocated to for Statue of Unity, a statue of Sardar Patel in Gujarat, in the recent Union Budget 2014- 15?
(a) Rs. 500 Crore
(b) Rs. 100 Crore
(c) Rs. 200 Crore
(d) Rs. 150 Crore
(e) None of these
Ans: (c)Rs. 200 Crore
Q605. Consider the following statements about Bharitiya Mahila Bank:
1. The Proposed Bank will be headquartered in Mumba i.
2. It will start 6 branches in Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahat i.
Select the correct answer using codes given below: Codes:

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Either 1 or 2
(e) None of these
Ans: (b) 2 only
Q606. Consider the following statements:
1. Allahabad Bank was the first bank to be established exclusively by Indians.
2. Seven banks forming subsidiary of State Bank of India was nationalised in 1969 Which of the statements given above is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
(e) Can’t say
Ans: (c) Both 1 and 2
Q607. The maximum period for which a fixed deposit can be accepted by a commercial bank is
(a) 10 years
(b) 15 years
(c) No limit
(d) 8 years
(e) None of these
Ans: (a) 10 years
Q608. The ratio of the Cash Reserves that the banks are required to keep with the RBI is known as
(a) Liquidity Ratio
(b) SLR
(c) CRR
(d) Net Demand and Time Liability
(e) None of the above
Ans: (c) CRR
Q609. RBI prescribes the cash reserve ratio to be maintained by banks as part of prudential norms. In what way is this cash reserve maintained by the banks?
(a) It is kept as reserves of gold with RBI
(b) It is maintained as cash with RBI
(c) Each bank keeps the reserve in their respective head offices
(d) It is maintained as investments in government bonds
(e) None of these
Ans: (b) It is maintained as cash with RBI
Q610. Which of the following is the drawee bank in respect of a cheque?
(a) The payee’s bank
(b) The bank which collects the cheque
(c) The bank on which the cheque is drawn
(d) The endorsee’s bank
(e) None of these
Ans: (c) The bank on which the cheque is drawn
Q611. The Government of India has launched a number of poverty alleviation programmes. This is done with the view that poverty is the root cause of social insecurity. In addition to that UNO has also launched Millennium Development Goals to be achieved by 201 5. Which of the following is NOT one of those goals?
(a) Improve mental health
(b) Combat HIV/AIDS, Malaria
(c) Reduce marriageable age for males to 18 years
(d) Promote gender equality and empower women
(e) Achieve universal primary education
Ans: (c) Reduce marriageable age for males to 18 years
Q612. As per the news published in major newspapers journals hence forth the Credit Card holders will be able to access their credit card information though automated interactive voice response system over the phone instead of speaking to the staff. This decision of the banks/credit card companies will provide
(1) an additional hurdle to the customers as people feel comfortable in talking to the staff instead of talking to a machine
(2) an additional security to the customers as this does not allow any staff to handle any transaction directly
(3) Some comfort to the banks as they will be able to reduce their staff strength

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) Only (1) & (3)
Ans: (a) Only (1)
Q613. Banks have the lowest lending levels in the…… part of India
(a) Central
(b) North-Eastern
(c) Southern
(d) Western
(e) Northern
Ans: (b) North-Eastern
Q614. Intermediate goods are excluded from GDP because
(a) they represent goods that have never been purchased so they cannot be counted
(b) their inclusion would understate GDP
(c) their inclusion would involve double counting
(d) the premise of the question is incorrect because intermediate goods are directly included in calculating GDP
(e) value of intermediate goods is unknown
Ans: (c) their inclusion would involve double counting
Q615. Which one of the following countries has launched the “Operation Barkhane” a counter terrorism operation in against Islamist militant in Northern Africa?
(a) USA
(b) Russia
(c) France
(d) Germany
(e) Portugal
Ans: (c) France
Q616. Which is the largest associates bank of State Bank of India?
(a) State Bank of Patiala
(b) State Bank of Hyderabad
(c) State Bank of Bikaner and Jaipur
(d) State Bank of Saurashtra
(e) State Bank of Assam
Ans: (b) State Bank of Hyderabad
Q617. Many times we read a term “Hot Money” in newspapers. What is/are the characteristics of Hot money?
(1) The term is used for fresh currency notes issued by the RB I
(2) It is the fund which flows in the market to take advantage of high interest rates
(3) It is the fund which is thrown in the market to create imbalance in the stock markets

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (b) Only (2)
Q618. Who will act as the banker to the Government of India?
(a) State Bank of India
(b) Reserve Bank of India
(c) NABARD
(d) Nationalised Banks
(e) Central Bank of India
Ans: (b) Reserve Bank of India
Q619. One rupee notes and coins are issued by
(a) Reserve Bank of India
(b) State Bank of India on behalf of Government of India
(c) Government of India
(d) Finance Minister of Central Government
(e) None of the above
Ans: (c) Government of India
Q620. Regional Rural Banks (RRBs) are empowered to transact the business of banking as defined under
(a) Banking Regulation Act, 1949
(b) Negotiable Instruments Act, 1881
(c) Regional Rural Banks Act, 1976
(d) the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
(e) None of the above
Ans: (a) Banking Regulation Act, 1949
Q621. The Narsimham Committee-II was set-up to suggest some recommendations for improvement in the
(a) efficiency and productivity of the financial institution
(b) banking reform process
(c) export of IT sector
(d) fiscal reform process
(e) None of the above
Ans: (b) banking reform process
Q622. 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
(a) point of sale terminal
(b) real time terminal
(c) shopping terminal
(d) All of the above
(e) None of the above
Ans: (a) point of sale terminal
Q623. As perthe reports in the leading newspapers the Securities & Exchange Board of India (SEBI) has asked the Mutual Fund industry to stop “Misselling” their schemes to investors. What is “Misselling” of products?
(1) Misselling takes place when mutual funds are sold without telling the likely returns
(2) When agents sell the products without telling investors what are the risks involved in investing in mutual funds
(3) When agents invest somebody’s money in mutual funds without their knowledge, it is called misselling

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans:
(e)
None of these
Q624. Special Drawing Rights are the rights of countries provided by
(a) World Bank
(b) IMF
(c) ADB
(d) Federal Reserve
(e) None of these
Ans: (b) IMF
Q625. Consider the following statements:
(1) Instant Money Transfer (IMT scheme is launched by Bank of India
(2) It allows withdrawal of funds to individuals from its ATMs without an account in the bank. Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(e) None of these
Ans: (c) Both 1 and 2
Q626. Presently, the number of the public sector banks in India is
(a) 8
(b) 20
(c) 28
(d) 14
(e) None of these
Ans: (c) 28
Q627. As we know, the RBI is the apex bank of India. Similarly, the apex Bank of the USA is called………….
(a) Federal Reserve
(b) The Central Bank of USA
(c) Bank of America
(d) Central National Bank of USA
(e) None of these
Ans: (a) Federal Reserve
Q628. Section 14 of Banking Regulation Act, 1949
(a) prohibits a banking company from creating a charge upon any unpaid capital of the company
(b) contains a system of licensing of banks by the RBI
(c) provides that the subscribed capital of a banking company should not be less than one-half of its authorised capital
(d) All of the above
(e) None of the above
Ans: (a) prohibits a banking company from creating a charge upon any unpaid capital of the company
Q629. Aworkinggrouponchequetransactionsand E-cheques was constituted by the Reserve Bank of India under the chairmanship of Dr R B Barman and major recommendations of group include
(a) the physical cheque will be truncated within the presenting bank
(b) settlement will be generated on the basis of current MICR code line data
(c) electronic images will be used for payment processing
(d) All of these
(e) None of these
Ans: (d) All of these
Q630. Banks are required to provide loans to the priority sector upto a specified limit. What is the limit for public sector bank?
(a) 40%
(b) 32%
(c) 45%
(d) 35%
(e) 60%
Ans: (a) 40%
Q631. What is the full form of ‘NBFC’ as used in the financial sector?
(a) New Banking Finance Company
(b) National Banking and Finance Corporation
(c) New Business Finance and Credit
(d) New-Business Fund Company
(e) None of the above
Ans:
(e)
None of the above
Q632. Which one of the following factors is taken into account to calculate the Balance of Payment (BoP) of a country?
(a) Current account
(b) Changes in the foreign exchange
(c) Errors and omissions
(d) All of these
(e) None of these
Ans: (d) All of these
Q633. Bank of Rajasthan was merged with
(a) HDFC Bank
(b) ICICI Bank
(c) AXIS Bank
(d) Citi Bank
(e) None of these
Ans: (b) ICICI Bank
Q634. Selling of securities in the open market by the central bank creates—
(a) Inflation
(b) Deflation
(c) Both of the above
(d) None of the above
(e) None of these
Ans: (b) Deflation
Q635. During the first nine months of the financial year 2013-14, India’s imports registered the growth of
(a) – 4.64%
(b) – 6.55%
(c) + 4.64%
(d) + 6.55%
(e) None of these
Ans: (b) – 6.55%
Q636. Which of the following is not the part of the scheduled banking structure in India?
(a) Money lenders
(b) Public sector banks
(c) Private sector banks
(d) Regional rural banks
(e) State co-operative banks
Ans: (a) Money lenders
Q637. Very often we read in newspapers/ magazines about ‘Sovereign Wealth Funds’. Which of the following is/ are the correct description of the same? These are the funds or the reserves of a government or cenetral bank of a country which are invested further to earn profitable returns
(2) These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as black money for several years
(3) The funds which are created to be used as relief funds or bailout packages

(a) Both (2) and (3) only
(b) Only (2)
(c) Only (3)
(d) Only (1)
(e) None of these
Ans: (d) Only (1)
Q638. At which rate the RBI lends short-term money to the bank?
(a) PLR
(b) CRR
(c) Repo rate
(d) Reverse repo rate
(e) None of these
Ans: (c) Repo rate
Q639. Banking Ombudsman Scheme is applicable to the business of __________
(a) All scheduled commercial banks excluding RRBs
(b) All scheduled commercial banks including RRBs
(c) Only Public Sector Banks
(d) All Banking Companies
(e) All scheduled banks except private banks
Ans: (b) All scheduled commercial banks including RRBs
Q640. Which of the following committees has given its recommendations on “Financial Inclusion”?
(a) Rakesh Mohan Committee
(b) Rangarajan Committee
(c) Sinha Committee
(d) Kelkar Committee
(e) None of these
Ans: (b) Rangarajan Committee
Q641. In Banking terminology, NPA means
(a) No-Promise Account
(b) Non-Personal Account
(c) Non-Performing Asset
(d) Net Performing Asset
(e) New Promising Ambience
Ans: (c) Non-Performing Asset
Q642. Which of the following schemes is launched specifically for helping senior citizens to avail loan by mortgage of their residential property?
(a) English Mortgage Scheme
(b) Senior Capital loan Scheme
(c) Reverse Mortgage Loan scheme
(d) Senior Citizen Personal Loan scheme
(e) None of these
Ans: (c) Reverse Mortgage Loan scheme
Q643. Which is the principal institution for promotion, financing and development of small scale industries in the country?
(a) RBI
(b) SBI
(c) IDBI
(d) SIDBI
(e) None of these
Ans: (d) SIDBI
Q644. How much amount has been allocated to for irrigation plan named Pradhan mantri krishi sichayin yojana, in the recent Union Budget 2014-15?
(a) Rs. 500 Crore
(b) Rs. 100 Crore
(c) Rs. 200 Crore
(d) Rs. 1000 cr
(e) None of these
Ans: (d)Rs. 1000 cr
Q645. Match the followings: List-I List-II Designation Chairperson/President A. ASSOCHAM
1. Krishna Kumar Natarajan B. FICCI
2. K. R. Kamath C. NASSCOM 3. Rana Kapoor D. Indian Bank
4. Naina Lal Kidwai Association (IBA)
Select the correct answer using codes given below: Codes: A B C D

(a) 4 3 2 1
(b) 3 4 1 2
(c) 2 1 3 4
(d) 1 2 4 3
(e)
Ans: (b) 3 4 1 2
Q646. Which was the first Bank corporated by the Indians?
(a) Imperial Bank of India
(b) State Bank of India
(c) Avadh Commercial Bank
(d) Reserve Bank of India
(e) National Bank
Ans: (c) Avadh Commercial Bank
Q647. The rate of interest payable on a bank deposits is determined by
(a) Indian Bank’s Association
(b) the bank concerned
(c) RBI
(d) Finance Ministry
(e) None of the above
Ans: (b) the bank concerned
Q648. The term ‘Ways and Means’ advances refers to
(a) the advances allowed under DRI Scheme by commercial bank
(b) the advances allowed by commercial banks under Twenty Point Economic Programme
(c) the temporary advances made to the government by its bankers to bridge the interval between expenditure and the flow of recepts of revenues
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q649. The chief economic advisor to the Government of India has recently changed. Who is the present incumbent?
(a) Raghurm Rajan
(b) Bimal Jalan
(c) Rakesh Mohan
(d) Kaushik Basu
(e) Y.V. Reddy
Ans: (a) Raghurm Rajan
Q650. Who is a banking ombudsman?
(a) The chief vigilance officer of a bank
(b) The chairman of a bank
(c) An official in the Finance Ministry, Government of India
(d) An independent authority appointed by RBI to address customer complaints
(e) None of these
Ans: (d) An independent authority appointed by RBI to address customer complaints
Q651. As per the decision taken by the Government of India, now the National Rural Employment Guarantee Act is extended to all the districts of India. This means it will now be applicable to about
(a) 200 districts
(b) 300 districts
(c) 400 districts
(d) 500 districts
(e) 600 districts
Ans:
(e)
600 districts
Q652. As per the notification issued by the banks, the “third party ATM usage” will now be restricted to certain withdrawals and limits only. What does it really mean?
(1) The ATM cardholders will not be able to withdraw from other banks’ ATMs under any circumstances
(2) Customers of one bank may be able to withdraw only a limited amount from other banks’ ATMs
(3) ATM card holders will have to pay a fee if they withdraw money from other banks’ ATMs frequently

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (2) & (3)
(e) Only (1) & (3)
Ans: (d) Only (2) & (3)
Q653. Bank loan against property requires the asset to be free from encumbrances. What does it mean?
(a) The asset to be free from liability
(b) The asset to be properly registered
(c) The property to be fully constructed
(d) The asset should not have multiple owners
(e) None of these
Ans: (a) The asset to be free from liability
Q654. Gross domestic product is a measure of the total value of all
(a) consumer income in an economy over a period of time
(b) capital accumulation in an economy over a period of time
(c) sales in an economy over a period of time
(d) final goods and services produced in an economy over a period of time
(e) final as well as intermediate goods and services produced in an economy over a period of time
Ans: (d) final goods and services produced in an economy over a period of time
Q655. According to the latest World Development Indicators (WDI) data, public spending on health and education in India is ___ per cent of country’s GDP. Fill the blank with correct option?
(a) 8.5
(b) 4.7
(c) 7.0
(d) 8.9
(e) 16
Ans: (b) 4.7
Q656. The formation of the 14th Finance Commission in India has been finalized. Who has been appointed to head the commission?
(a) D. Subba Rao
(b) Y. V. Reddy
(c) Montek Singh Ahluwalia
(d) Raghuram Rajan
(e) Rakesh Mohan
Ans: (b) Y. V. Reddy
Q657. RBI’s open market operation transactions are carried out with a view to regulate
(a) Liquidity in the economy
(b) Prices of essential commodities
(c) Inflation
(d) Borrowing power of the banks
(e) All the above
Ans:
(e)
All the above
Q658. Where is the headquarter of Reserve Bank of India?
(a) Mumbai
(b) Delhi
(c) Kolkata
(d) Ahmedabad
(e) Noida
Ans: (a) Mumbai
Q659. The monetary authority in India,viz Reserve Bank of India, is bound to maintain a reserve against the notes issued, whatever may be the amount. This system is called is
(a) minimum reserve system
(b) proportional reserve system
(c) maximum fiduciary issue system
(d) simple deposit system
(e) None of the above
Ans: (b) proportional reserve system
Q660. Which of the following is incorrect about the recommendations of Narasimham Committee Report, 1998?
(a) Reduced CRR and SLR
(b) Deregulation of Interest Rate
(c) Establishment of the ARF Tribunal
(d) Fixing Prudential Norms
(e) Capital Adequacy Norms
Ans: (c) Establishment of the ARF Tribunal
Q661. Which of the following organisations/ agencies works solely to monitor and arrange flow of agriculture credit in India?
(a) NABARD
(b) SIDBI
(c) RBI
(d) SEBI
(e) None of these
Ans: (a) NABARD
Q662. 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?
(a) Money
(b) Marginal
(c) Message
(d) Mutual Fund
(e) Mobile
Ans:
(e)
Mobile
Q663. Which of the following is/are correct about the “Operational Risk’ as used in the field of banking?
(1) Risk of loss due to inadequate or failed internal process
(2) Risk of loss due to natural calamities
(3) Loss occurred due to non-compliance of legal procedures

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (a) Only (1)
Q664. The main function of the IMF is
(a) to help solve balance of payments problems of member countries
(b) to arrange international deposits from banks
(c) to act as private sector lending arm of the World Bank
(d) to finance investment loans to developing countries
(e) None of the above
Ans: (a) to help solve balance of payments problems of member countries
Q665. Consider the following statements:
1. The RBI has announced the ‘Depositor Education and Awareness Fund Scheme, 2014’.
2. The Depositor Education and Awareness Fund Scheme will utilize unclaimed bank deposits for education and awareness of depositor. 3. The scheme will be funded by centre for depositor ‘s education. Which among the above is/ are correct statements?

(a) 1, 2 & 3
(b) 2 & 3
(c) 1, & 2 only
(d) One of the above
(e) None of these
Ans: (c) 1, & 2 only
Q666. Which of the following is popular ‘saving bank’ among the poor children?
(a) Core banking
(b) Credit banking
(c) Debit banking
(d) Merchant banking
(e) Piggy banking
Ans:
(e)
Piggy banking
Q667. What is the full form of ‘ULIP’, the term which was in the news recently?
(a) Universal Life & Investment Plan
(b) Unit Loan & Insurance Plan
(c) Universal Loan & Investment Plan
(d) Uniformly Loaded Investment Plan
(e) Unit Linked Insurance Plan
Ans:
(e)
Unit Linked Insurance Plan
Q668. Objective of Monetary Policy of RBI is to
(a) control inflation
(b) discourage loading of commodities
(c) encourage flow of credit into neglected sector
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q669. Which of the following is a primary function of banks?
(a) Collection and payment of cheques, rent, interest etc on behalf of their customers
(b) Buying, selling and keeping in safe custody, the securities on behalf of their customers
(c) Acting as trustee and executors of the property of their customers on their advice
(d) Remitting money from one place to the other through bank drafts or mail or telegraphic transfers
(e) Accepting deposits
Ans:
(e)
Accepting deposits
Q670. The central co-operative banks are in direct touch with
(a) farmers
(b) state co-operative banks
(c) land development banks
(d) Central Government
(e) None of the above
Ans: (b) state co-operative banks
Q671. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?
(a) Individual Banks’ Board
(b) Ministry of Commerce
(c) Ministry of Finance
(d) RBI
(e) Interest Rate Commission of India
Ans: (a) Individual Banks’ Board
Q672. BoP (Balance of Payment) refers to
(a) transactions in the flow of capital
(b) transactions relating to receipts and payment of invisible
(c) transactions relating only to exports and imports
(d) systematic record of all its economic transaction with the rest of the world
(e) All of the above
Ans:
(e)
All of the above
Q673. ICICI provides financial assistance to
(a) small-scale industries
(b) medium-scale industries
(c) large-scale industries
(d) All of the above
(e) None of the above
Ans: (c) large-scale industries
Q674. To control inflation the central bank should —
(a) Sell government securities and decrease bank rate
(b) Sell government securities and increase bank rate
(c) Purchase government securities and increase bank rate
(d) Purchase government securities and to decrease bank rate
(e) None of these
Ans: (b) Sell government securities and increase bank rate
Q675. The Ministerial Conference of World Trade Organisation (WTO) in was held in
(a) Japan
(b) Mexico
(c) Canada
(d) Indonesia
(e) None of these
Ans: (d) Indonesia
Q676. BCSBI stands for
(a) Banking Codes and Standards Board of India
(b) Banking Credit and Standards Board of India
(c) Banking Codes and Service Board of India
(d) Banking Credit and Service Board of India
(e) None of the above
Ans: (a) Banking Codes and Standards Board of India
Q677. The names of which of the following rates/ratios cannot be seen in financial newspapers?
(a) Bank Rate
(b) Repo Rate
(c) Statutory Liquidity Ratio
(d) Cash Reserve Ratio
(e) Pulse Rate
Ans:
(e)
Pulse Rate
Q678. When RBI acts as a baker to the government, what does it do?
(a) RBI keeps bank accounts of the government
(b) RBI carries out government transactions
(c) RBI advises the government on all financial and monetary matters
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q679. Banking Ombudsman is appointed by _____________
(a) Government of India
(b) State Governments
(c) RBI
(d) E C G C
(e) Exim Bank
Ans: (c) RBI
Q680. Which of the following products launched by most ofthe banks helps farmers in getting instant credit for various agricultural purposes?
(a) Kissan Credit Card
(b) Personal Loan
(c) Business loan
(d) ATM Card
(e) None of these
Ans: (a) Kissan Credit Card
Q681. When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue, it is called __________
(a) Revenue Deficit
(b) Budgetary Deficit
(c) Zero Budgeting
(d) Trade Gap
(e) Balance of payment problem
Ans: (a) Revenue Deficit
Q682. Bancassurance is
(a) an insurance scheme to insure bank deposits
(b) an insurance scheme exclusively for the employees of banks
(c) a composite finacial service offering both banking and insurance products
(d) a bank deposit scheme exclusively for employees of insurance companies
(e) None of these
Ans:
(e)
None of these
Q683. ICICI is the name of a
(a) chemical industry
(b) bureau
(c) corporation
(d) financial institution
(e) None of these
Ans: (d) financial institution
Q684. How much amount has been allocated to for Internet connectivity in villages, in the recent Union Budget 2014-15?
(a) Rs. 100 Crore
(b) Rs. 200 Crore
(c) Rs. 500 Crore
(d) Rs. 150 Crore
(e) None of these
Ans: (c)Rs. 500 Crore
Q685. Core Banking Solution (CBS) provides:
1. multiple delivery channels to the customers.
2. better MIS and reporting to external agencies such as government, RBI, etc. 3. better asset liability management and risk management by banks.
Select the answer from the codes given below: Codes:

(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) All of the above
(e) None of these
Ans: (d) All of the above
Q686. When was the Avadh Commercial Bank established?
(a) 1881
(b) 1894
(c) 1898
(d) 1899
(e) 1864
Ans: (a) 1881
Q687. Zero balance account is generally allowed to be opened for
(a) salaried class
(b) businessmen
(c) foreign customers
(d) children
(e) senior citizens
Ans: (a) salaried class
Q688. Which of the following training establishment is not run by Reserve Bank of India?
(a) Bankers Training College, Bombay
(b) College of Agricultural Banking, Pune
(c) NIBM
(d) All of the above
(e) None of the above
Ans: (c) NIBM
Q689. The financial year for banks is April-March, but what is the financial year for RBI?
(a) January – December
(b) April – March
(c) July – June
(d) October – September
(e) June-May
Ans: (c) July – June
Q690. Know Your Customer (KYC) norms are required to be strictly followed by banks. It means
(a) providing improved customer services
(b) determining the identify and residence proof of account holders through approved documents
(c) ensuring that staff members know the customers
(d) organising regular customer service meetings
(e) None of these
Ans: (b) determining the identify and residence proof of account holders through approved documents
Q691. Which one of the following is a SelfEmployment Programme for Educated Unemployed Youth?
(a) Prime Minister’s Rozgar Yojana
(b) Swarn Jayanti Sahakari Rozgar Yojana
(c) National Social Assistance Programme
(d) Swarn Jayanti Gram Swarozgar Yojana
(e) None of these
Ans: (a) Prime Minister’s Rozgar Yojana
Q692. Which of the following is an innovative mechanism adopted by banks to meet the targets fixed for lending to priority sector by the Banks?
(a) Buying & Selling of Priority Sector Lending Certification
(b) Sale of Kisan Vikas Patra
(c) Inter Bank Participation Certificates
(d) Adoption of Core Banking Solution
(e) None of These
Ans: (d) Adoption of Core Banking Solution
Q693. In bank’s parlance, credit risk in lending is
(a) default of the banker to maintain CRR
(b) default of the banker to maintain SLR
(c) default of the banker to release credit to the customer
(d) default of the customer to repay the loan
(e) None of these
Ans: (d) default of the customer to repay the loan
Q694. The GDP is the value of all final goods and services produced
(a) within the nations boundaries
(b) by domestically owned companies
(c) by citizens of the country
(d) by domestically controlled companies
(e) None of the above
Ans: (a) within the nations boundaries
Q695. Which among the following companies has topped the Fortune Global 500 list of the world’s biggest companies?
(a) Exxon Mobil
(b) Wal-Mart
(c) Sinopec Group
(d) Indian Oil Corp
(e) None of these
Ans: (b) Wal-Mart
Q696. As per the newspaper reports, some economically developed states only hold about 60% of the total ‘Demant Accounts’ in India. A demant Account is
(a) an account which is opened by the people of the lower income groups of society
(b) an account in which trading of the shares is done
(c) an account which can be opened only by minors
(d) an account which can be operated by big corporate houses and are mainly business accounts like current acounts
(e) None of these
Ans: (b) an account in which trading of the shares is done.
Q697. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means
(a) Sale or purchase of Govt. securities
(b) Issuance of different types of bonds
(c) Auction of gold
(d) To make available direct finance to borrowers
(e) None of these
Ans: (a) Sale or purchase of Govt. securities
Q698. What is the animal of the insignia of the RBI?
(a) Lion
(b) Tiger
(c) Panther
(d) Elephant
(e) Horse
Ans: (b) Tiger
Q699. One rupee notes bear the signature of
(a) Governor of Reserve Bank of India
(b) Prime Minister of India
(c) President of India
(d) Secretary, Ministry of Finance (Government of India)
(e) None of the above
Ans: (d) Secretary, Ministry of Finance (Government of India)
Q700. RRBs are refinanced at
(a) 2% below the bank rate
(b) 1% below the bank rate
(c) 2% below the repo rate
(d) 1% below the repo rate
(e) repo rate
Ans: (a) 2% below the bank rate

Financial Awareness Section 8.

Q701. Which of the following is not a scheduled Commercial Bank?
(a) IDBI Bank
(b) Axis Bank
(c) HDFC Bank
(d) NABARD
(e) Kodak Mahindra Bank
Ans: (d) NABARD
Q702. All Inter-Bank Funds Transfer System, where funds are transferred as and when the transactions are triggered, is called
(a) internet banking
(b) mobile banking
(c) bill payment service
(d) real time gross settlement
(e) None of the above
Ans: (d) real time gross settlement
Q703. The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as…………….
(a) Probability risk
(b) Market risk
(c) Inflation risk
(d) Credit risk
(e) None of these
Ans: (b) Market risk
Q704. On which one of the following issues has IMF supported monetary policy of India?
(a) Introduction of GST
(b) Stimulus for agriculture sector
(c) Concessions for foreign investment
(d) Tightening of monetary policy
(e) None of the above
Ans: (d) Tightening of monetary policy
Q705. Consider the following statements:
(1) Umesh Chandra committee was set up by RBI to study the various issues relating to financial benchmarks
(2) The committee has recommended change in determining money market benchmark
(3) Ram Chandra committee was set up by SEBI to study the various issues relating to financial benchmarks. Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) only 3
(e) None of these
Ans: (b) 2 only
Q706. Who is a very senior citizen?
(a) A person who is 65 years and above
(b) A person who is 75 years and above
(c) A person who is 80 years and above
(d) A person who is 90 years and above
(e) A person who completed 100 years of age
Ans: (a) A person who is 65 years and above
Q707. Which of the following Rates/Ratio is not covered under the Monetary and Credit policy of the RBI?
(a) Bank Rate
(b) Repo Rate
(c) Cash Reserve Ratio
(d) Reverse repo Rate
(e) Exchange Rate of Foreign Currencies
Ans:
(e)
Exchange Rate of Foreign Currencies
Q708. Which of the following statements is/are correct?
(a) SEBI was established in 1988
(b) It was made a fully autonomous body in 1992
(c) It regulates the securities market and protect the interests of investors in securities
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q709. Section 131 of Negotiable Instrument Act, 1881 extends protection to the
(a) paying banker
(b) collecting banker
(c) advising banker
(d) issuing banker
(e) All of these
Ans: (b) collecting banker
Q710. Co-operative banks in India are registered under
I. Banking Laws (Co-operative Societies) Act, 196 5.
II. Banking Regulation Act, 194 9.
III. Companies Act, 195 6.
Select the correct answer using the codes given below

(a) Only I
(b) I and II
(c) II and III
(d) I and III
(e) All of these
Ans: (a) Only I
Q711. Why are interest rates charged by Micro Finance Institutions (MFIs) higher than lending rates of banks?
(a) MFIs are not allowed to source deposits from public
(b) Banks have the benefit of cheaper funds
(c) MFIs borrow bulk of their funds from banks
(d) MFIs borrow funds from banks at high cost and also their administrative expenses are more
(e) None of these
Ans: (d) MFIs borrow funds from banks at high cost and also their administrative expenses are more
Q712. Which of the following is the component of India’s Foreign Exchange Reserve?
(a) Special drawing rights
(b) Reserve tranche position of India in IMF
(c) Indian currency held by foreign countries
(d) Both A and B
(e)Neither A nor B
Ans: (d) Both A and B
Q713. ICICI provides assistance by way of
(a) long and medium-term loans and equity participation
(b) guaranteeing rupee and foreign currency loans raised from other sources
(c) underwriting issues of shares and debentures
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q714. Recently, The Reserve Bank of India (RBI) constituted a 15-member inter-regulatory committee to monitor the growing phenomenon of shadow banking. Who has been appointed as the Chairman of this committee?
(a) P. Vijaya Bhaskar
(b) Dindyal Kukreja
(c) N. Sundaresan
(d) Ram Nath
(e) None of these
Ans: (a) P. Vijaya Bhaskar
Q715. Who is the newly appointed Managing Director and CEO of MCX-SX?
(a) Srikant Javlekar
(b) Saurabh Sarkar
(c) U.K. Sinha
(d) Prateep Chowdhary
(e) None of these
Ans: (c) U.K. Sinha
Q716. Scheduled bank means a bank
(a) incorporated under the Companies Act, 1956
(b) authorised to transact government business
(c) governed by the Banking Regulation Act, 1949
(d) included in the Second Schedule to the Reserve Bank of India Act, 1934
(e) All of the above
Ans: (d) included in the Second Schedule to the Reserve Bank of India Act, 1934
Q717. Ten-rupee notes contain the signature of
(a) Finance Secretary, GOI
(b) Chairman, State Bank of India
(c) Governor, Reserve Bank of India
(d) Finance Minister, GOI
(e) Prime Minister
Ans: (c) Governor, Reserve Bank of India
Q718. A bank which acts as a banker of other banks is called
(a) saving bank
(b) commercial bank
(c) investment bank
(d) development bank
(e) central bank
Ans:
(e)
central bank
Q719. A bank’s ‘fixed deposit’ is also referred to as a
(a) term deposit
(b) savings bank deposit
(c) current deposit
(d) demand deposit
(e) home savings deposit
Ans: (a) term deposit
Q720. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign nation?
(a) Personal Loan
(b) Corporate Loan
(c) Educational Loan
(d) Mortgage Loan
(e) None of these
Ans: (c) Educational Loan
Q721. A non-performing asset is _____________
(a) Money at call and short notice
(b) An asset that ceases to generate income
(c) Cash balance in till
(d) Cash balance with RBI
(e) Balance with other banks
Ans: (b) An asset that ceases to generate income
Q722. Which of the following types of accounts are known as ‘Demat Accounts’?
(a) Accounts which are Zero Balance Accounts
(b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
(c) Accounts in which shares of various companies are traded in electronic form
(d) Accounts which are operated through internet banking facility
(e) None to these
Ans: (c) Accounts in which shares of various companies are traded in electronic form
Q723. When the rate of inflation increases
(a) purchasing power of money increases
(b) purchasing power of money decreases
(c) value of money increases
(d) purchasing power of money remains unaffected
(e) amount of money in circulation decrease
Ans: (b) purchasing power of money decreases
Q724. Crisis Management Center for women will be open at ______?
(a) Delhi
(b) Mumbai
(c) Bangalore
(d) Kolkata
(e) Gurgaun
Ans: (a) Delhi
Q725. Under which of the following circumstances Reserve Bank of India (RBI) raised the Repo rate under Liquidity Adjustment Facility (LAF) from 7.75 to 8 per cent in January 2014?
1. Global uncertainty continues to surround the prospects for some emerging economies.
2. Domestic fragilities getting accentuated. 3. Financial market contagion is a clear potential risk.
4. The CPI inflation is expected to be on the upside risk.
Select the answer from the codes given below: Codes:

(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 2, 3 and 4
(d) All of the above
(e) None of these
Ans: (c) 2, 3 and 4
Q726. Imperial Banks were amalgamated and changed as……
(a) Reserve Bank of India
(b) State Bank of India
(c) Subsidiary Banks
(d) Union Bank of India
(e) Corporation Bank
Ans: (b) State Bank of India
Q727. In our country, now a cheque remains valid for payment for………… from the date of issue
(a) 3 months
(b) 6 months
(c) 9 months
(d) 12 months
(e) 18 months
Ans: (a) 3 months
Q728. In period of depression when the Reserve Bank desires to encourage the banking system to create more credit it
(a) reduces the bank rate
(b) raises the bank rate
(c) permits the bank rate to be decided by market forces
(d) All of these
(e) None of these
Ans: (a) reduces the bank rate
Q729. Which of the following rates/ratios is not covered under the RBI monetary and credit policy?
(a) Bank rate
(b) Exchange rate of foreign currencies
(c) Repo rate
(d) Reverse repo rate
(e) Cash reserve ratio
Ans: (b) Exchange rate of foreign currencies
Q730. The co-operative credit societies have a
(a) two-tier structure
(b) three-tier structure
(c) four-tier structure
(d) five-tier structure
(e) None of these
Ans: (b) three-tier structure
Q731. Nobel laureate Muhammed Yunus belongs to which of the following countries?
(a) Sri Lanka
(b) Pakistan
(c) Maldives
(d) Bangladesh
(e) None of these
Ans: (d) Bangladesh
Q732. As we all have notices, banks these days are giving more emphasis on “Branchless Banking”. What does this really mean? ]
(1) Banks will not have many branches as used to be in the good old days. Instead, the number of branches will be restricted and will conduct only a specified core business
(2) Banks will launch/operate many delivery channels like ATMs, Mobile Banking/Internet Banking etc so that people are not required to visit a branch for their usual banking needs
(3) This means banks will issue only debit or credit cards for all types of day-today financial transactions. Cheques/ cash payments will not be allowed

(a) Only (1)
(b) Only (2)
(c) Only (1) & (2)
(d) Only (2) & (3)
(e) All (1), (2) & (3)
Ans:
(e)
All (1), (2) & (3)
Q733. Loans and advances a bank, provides come under which of the following category?
(a) Assets
(b) Liabilities
(c) Costs
(d) All of these
(e) None of these
Ans: (a) Assets
Q734. In any year, real GDP
(a) might be greater or less than potential GDP
(b) will always be greater than potential GDP because of the tendency of nations to incur inflamation
(c) always equals potential GDP
(d) must always be less than potential GDP
(e) cannot be determined
Ans: (a) might be greater or less than potential GDP
Q735. According to Reserve Bank of India’s latest study, which one of the following states ranks as the best performing state in most of the key fiscal parameters?
(a) Gujarat
(b) Kerala
(c) Chhattisgarh
(d) Odisha
(e) None of these
Ans: (c) Chhattisgarh
Q736. What is an Indian Depository Receipt?
(a) A deposit account with a public Sector Bank
(b) A depository account with any of the Depositories India
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(d) An instrument in the form of deposit receipt issued by Indian depositories
(e) None of these
Ans: (c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
Q737. The bank rate means
(a) Rate of interest charged by commercial banks from borrowers
(b) Rate of interest at which commercial banks discounted bills of their borrowers
(c) Rate of interest allowed by commercial banks on their deposits
(d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
(e) None of these
Ans: (d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
Q738. Who regulates the money circulation in India?
(a) State Bank of India
(b) Reserve Bank of India
(c) NABARD
(d) Commercial Banks
(e) SBI
Ans: (b) Reserve Bank of India
Q739. The note-issue system in India is based on
(a) Gold Deposit System
(b) Minimum Reserve System
(c) Proportional Reserve System
(d) Simple Deposit System
(e) None of the above
Ans: (b) Minimum Reserve System
Q740. With a view to improving the performance of RRBs and giving more powers and flexibility to their boards in decisionmaking, the Reserve Bank had constituted task force on empowering the RRB Boards for Operational Efficiency. The task force was headed by
(a) KG Karmakar
(b) SS Tarpore
(c) Rangarajan
(d) M Narasimham
(e) None of the above
Ans:
(e)
None of the above
Q741. Which programme was instituted to help the farmers across timely and adequently credit?
(a) Kissan Credit Card Yojna
(b) MNREGA
(c) RSBY
(d) Aam Admi Bima Yojna
(e) All of the above
Ans: (a) Kissan Credit Card Yojna
Q742. The money market in India consists of two sectors namely the organised and the unorganised sector. Which of the following do not fall under unorganised sector?
(a) RBI, commercial banks and SBI
(b) LIC and GIC
(c) Unit Trust of India
(d) Indigenous banks
(e) None of the above
Ans: (d) Indigenous banks
Q743. A/Bank/Finaical Organisation these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced the organisation’s security awareness manual. This step of the organisation can be classified under which one of the following categories of measures for a business?
(a) Preventive
(b) Compliance
(c) Corrective
(d) Detective
(e) None of these
Ans: (a) Preventive
Q744. Which of the following organisations has given a warning to the nations of the world that there may be increased risk to global financial stability in the world?
(a) World Bank
(b) World Trade Organisation
(c) Asian Development Bank
(d) International Monetary Fund
(e) United Nation Organisation
Ans: (a) World Bank
Q745. Which among the following finance companies has received RBI approvals to set up a minimum of 9,000 white label ATMs (WLAs) in the next three years in rural India?
(a) CMS Finvest Ltd
(b) SREI Infrastructure Finance Ltd
(c) Reliance Capital Ltd
(d) Tokyo Finance Ltd
(e) None of these
Ans: (b) SREI Infrastructure Finance Ltd.
Q746. When banks accept fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known?
(a) Term deposit
(b) Demand deposit
(c) Bond
(d) Mortagage
(e) Advance
Ans: (a) Term deposit
Q747. RBI has asked banks to make a plan to provide banking services to all villages having a population up to 200 0. This directive issued by the RBI will fall in which of the following categories?
(a) Plan for Financial Inclusion
(b) Efforts to meet the targets of Priority Sector Lending
(c) Extension of Relief Packages to the Farmers
(d) Plan for opening more rural branches
(e) None of these
Ans: (a) Plan for Financial Inclusion
Q748. A company which pools money from investors and invests in stocks, bonds and shares is called
(a) a bank
(b) an insurance company
(c) bank assurance
(d) mutual fund
(e) None of the above
Ans: (d) mutual fund
Q749. Which of the following statements is incorrect about negotiable instruments?
(a) Pay A or Order
(b) Pay to Order to A
(c) Pay A and B
(d) Pay A only
(e) Pay Bearer
Ans: (d) Pay A only
Q750. Under the scheme of Co-operative Agricultural Credit developed in India, the state Co-operative Bank has been considered such a vital link that
(a) it has been given a status comparable to that of a scheduled bank
(b) for certain purposes, the central financing agencies have been treated as its branches
(c) Both A and B
(d)All
(e)None
Ans: (c) Both A and B
Q751. Which of the following is true?
(a) NBFCs can accept deposits from the public
(b) NBFCs cannot offer deposit schemes to the public
(c) Deposits of NBFCs are insured with DICGC
(d) NBFCs can accept deposits from public if they are registered and permitted by RBI
(e) None of these
Ans: (d) NBFCs can accept deposits from public if they are registered and permitted by RBI
Q752. All of the following are useful options for the government to pursue to bolster foreign exchange reserves, except to
(a) impose exchange controls
(b) impose export controls
(c) adjust the exchange rate
(d) borrow foreign currencies
(e) permit a free floating exchange rate
Ans:
(e)
permit a free floating exchange rate
Q753. The most significant feature of ICICI’s operations is
(a) the foreign currency loans sanctioned by it
(b) to channelise World Bank Funds to industry in India and to build capital market in India
(c) the refinance facilities extended by it
(d) Both A and B
(e)None
Ans: (d) Both A and B
Q754. What is the name of the new scheme announced by the Prime Minister Narendra Modi on Independence Day to help the poor in opening bank accounts, which will come with the facility of a debit card and an accidental insurance cover of Rs. 1 lakh?
(a) Prime Minister Poor Helping Hand Scheme
(b) Pradhan Mantri Garibi Hatao Yojana
(c) Pradhan Mantri Jan Dhan Yojana
(d) Prime Minster Poor relief Yojana
(e) None of these
Ans: (c) Pradhan Mantri Jan Dhan Yojana
Q755. Which is the latest round of NELP unveiled by the government for the auction?
(a) NELP-IX
(b) NELP-X
(c) NELP-XI
(d) NEP-XIII
(e) None of these
Ans: (b) NELP-X
Q756. ‘Unit Banking System’ is that system where an individual bank undertakes the banking business
(a) through a single office
(b) through a few branches operating within a limited area
(c) Both B and C
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q757. Interest payable on savings bank accounts is
(a) not regulated by RB I
(b) regulated by State Governments
(c) regulated by Central Government
(d) regulated by RB I
(e) regulates by Finance Minister.
Ans: (d) regulated by RB I.
Q758. The Reserve Bank of India was set-up on the recommendations of the
(a) Narasimham Committee
(b) Hilton-Young Commission
(c) Mahalanobis Committee
(d) Fazal Ali Commission
(e) None of the above
Ans: (b) Hilton-Young Commission
Q759. Who will settle the grievances of customers of banks?
(a) Reserve Bank of India
(b) State Bank of India
(c) Local Courts
(d) Ombuds Men
(e) Governor of RBI
Ans: (d) Ombuds Men
Q760. Many times we see in newspapers that some projects are launched by the Govt authorities on ‘PPP’ basis. What is the full form of ‘PPP’?
(a) Preferential Payment Plan
(b) Public Private Partnership
(c) Partial Payment Project
(d) Popular Private Project
(e) Public Private Plan
Ans: (b) Public Private Partnership
Q761. Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short-term securities as a reserve all the time. In Banking World this is known as
(a) CRR
(b) Fixed Asset
(c) SLR
(d) PLR
(e) None of these
Ans: (c) SLR
Q762. The arrangement under which banks sell insurance products acting as the agents of the respective companies is called the
(a) Insurance joint venture
(b) Bancassurance Model
(c) Hybrid Insurance Model
(d) Insurance Broking
(e) Integrated Model
Ans: (b) Bancassurance Model
Q763. A type of fraud wherein criminals use an innocent person’s details to open or use an account to carry out financial transactions is known as
(a) identity theft
(b) hacking
(c) money laundering
(d) espionage
(e) phishing
Ans:
(e)
phishing
Q764. Annual PPF ceiling to be enhanced to _____ from Rs 1 lakh
(a) Rs. 1.5 lakh
(b) Rs. 2 lakh
(c) Rs. 3 lakh
(d) Rs. 3.5 lakh
(e) none of these
Ans: (a)Rs. 1.5 lakh
Q765. The RBI Expert Committee to revise and strengthen the monetary policy framework is headed by
(a) Dr. Urjit R. Patel Committee
(b) Suresh Mathur Panel
(c) Vijay Kelkar Committee
(d) Shah Nawaz Committee
(e) None of these
Ans: (a) Dr. Urjit R. Patel Committee
Q766. When was Imperial Bank was changed as State Bank of India?
(a) 1st January, 1935
(b) 26th February, 1947
(c) 1st July, 1955
(d) 1st July, 1959
(e) 26th February, 1955
Ans: (c) 1st July, 1955
Q767. ‘Nomination’ for a Deposit account in the bank means
(a) mandate given by the close relative (s) of the depositor, to settle the death claim in case of death of the depositor
(b) mandate decided by the bank to settle the death claim of its depositor
(c) mandate of the depositor in favour of one or more persons, to claim the amount on death of the depositor
(d) mandate of the depositor in favour of a close relative who can claim the amount on death of the depositor
(e) court order instructing the banks to settle the death claim of its depositor
Ans: (d) mandate of the depositor in favour of a close relative who can claim the amount on death of the depositor
Q768. For the performance of its duties as the regulator of credit, the Reserve Bank of India possesses the usual instruments of general credit control, viz
(a) bank rate
(b) open market operation
(c) the power to vary the reserve requirement of banks
(d) All of these
(e) None of these
Ans: (d) All of these
Q769. Under provisions of which one of the following Acts does the RBI issue directives to the Banks in India?
(a) RBI Act
(b) Banking Regulation Act
(c) Essential Commodities Act
(d) RBI and Banking Regulation Act
(e) None of the above
Ans: (d) RBI and Banking Regulation Act
Q770. 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 5 years or extended period.
Select the correct answer using the codes given below

(a) I and II
(b) II and III
(c) I and III
(d) All of these
(e) None of these
Ans: (d) All of these
Q771. Which of the following will set up core banking infrastructure for rural banks?
(a) SIDBI
(b) IBA
(c) RBI
(d) SBI
(e) NABARD
Ans:
(e)
NABARD
Q772. Many times we read a term CBS used in banking operation. What is the full form of the letter ‘C’ in the term ‘CBS’?
(a) Core
(b) Credit
(c) Continuous
(d) Complete
(e) None of these
Ans: (a) Core
Q773. Which of the following products of a bank is specifically designed to provide financial help to children in their higher studies in India or in a foreign nation?
(a) Personal loan
(b) Corporate loan
(c) Educational loan
(d) Mortgage loan
(e) None of these
Ans: (c) Educational loan
Q774. Which of the following is not included in National Income Accounts?
(a) Second hand goods
(b) Transaction in stock markets
(c) Transfer payments
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q775. The Reserve Bank of India has power to print currency notes of up to Rs. ____?
(a) 1,000
(b) 5,000
(c) 10,000
(d) 15,000
(e) None of these
Ans: (c) 10,000
Q776. What is Call Money?
(a) Money borrowed or lent for a day or overnight
(b) Money borrowed for more than one day but up to 3 days
(c) Money borrowed for more than one day but up to 7 days
(d) Money borrowed for more than one day but up to 14 days
(e) None of these
Ans: (a) Money borrowed or lent for a day or overnight
Q777. The stance of RBI monetary policy is
(a) inflation control with adequate liquidity for growth
(b) improving credit quality of the Banks
(c) strengthening credit delivery mechanism
(d) supporting investment demand in the economy
(e) Any of the above
Ans:
(e)
Any of the above
Q778. When was Reserve Bank of India established?
(a) 1920
(b) 1925
(c) 1935
(d) 1948
(e) 1968
Ans: (c) 1935
Q779. The Indian rupee is a
(a) taken coin
(b) standard-token coin
(c) standard coin
(d) gold coin
(e) None of the above
Ans: (b) standard-token coin
Q780. Onthe current account,balancesmaintained by the Regional Rural Banks (RRBs) with them, the commercial banks may
(a) pay interest up to 9%
(b) waive incident charges
(c) pay interest as applicable to savings accounts
(d) pay interest as such rates as may be mutually agreed to
(e) All of the above
Ans: (a) pay interest up to 9%
Q781. The majority stake of subsidiaries of NABARD is held by
(a) SBI
(b) RRB
(c) RBI
(d) Co-operative Bank
(e) PNB
Ans: (c) RBI
Q782. Currently, banks claim that they have achieved 100% CBS. What are they referring to?
(a) It means all their branches are technology driven with core banking solutions
(b) It suggests complete banking services
(c) It is an indication of customised banking services
(d) All of the above
(e) None of the above
Ans: (a) It means all their branches are technology driven with core banking solutions
Q783. Very often we see in the advertisements published by Financing Institutes/Agencies stating the their products are given high or average Ratings. These Rating Agencies classify bonds/investments into how many categories?
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (d) All (1), (2) & (3)
Q784. Consider the following statements:
I. IMF and World Bank both are Bretton Wood heir.
II. World Bank provides long-term loan for promoting balanced economic development.
III. IMF provides loans to eliminate BoP disequilibrium. Which of the statements given above are correct?

(a) I and II
(b) II and III
(c) I and III
(d) All of these
(e) None of these
Ans: (d) All of these
Q785. Which of the following is the largest bank in the world in terms of market capitalization?
(a) China Construction Bank
(b) Industrial & Commercial Bank of China
(c) Wells Fargo & Co
(d) Bank of America
(e) None of these
Ans: (b) Industrial & Commercial Bank of China
Q786. Which one of the following whose activities are not systematically coordinated by the monetary authority?
I. Organised sector
II. Unorganised sector
III. Co-operative sector
Select the correct answer using the codes given below

(a) Only II
(b) I and III
(c) Only I
(d) II and III
(e) Only III
Ans: (a) Only II
Q787. The rate of interest on Savings Bank Account is stipulated by
(a) The concerned bank
(b) RBI
(c) Indian Banks Association
(d) Government of India
(e) Banking Codes and Standards Board of India
Ans: (b) RBI
Q788. Which of the following rates is not decided by RBI?
(a) Bank rate
(b) Repo rate
(c) Reverse Repo rate
(d) Base rate
(e) Cash Reserve Ratio
Ans: (d) Base rate
Q789. Which of the following is not a negotiable instrument?
(a) Promissory note
(b) Bill of exchange
(c) Cheque
(d) Bank draft
(e) Share certificate
Ans: (d) Bank draft
Q790. Central Co-operative Banks
(a) occupy a crucial importance in the cooperative credit structure
(b) form an important link between the State co-operative bank at the apex and the primary agricultural credit societies at the base
(c) are closer to the primary societies than an Apex Bank could be one
(d) None of the above
(e) All of the above
Ans:
(e)
All of the above
Q791. The Narasimham Committee II was setup to suggest some recommendations for improvement in the
(a) efficiency and productivity of the financial institution
(b) banking reform process
(c) export of IT sector
(d) fiscal reform process
(e) None of these
Ans: (b) banking reform process
Q792. Balance of trade of a country is equivalent to
(a) difference between the inward and outward remittances made in foreign exchange
(b) surplus generated shown in a trading account
(c) difference between exports and imports
(d) All of the above
(e) None of the above
Ans: (c) difference between exports and imports.
Q793. In the State of India, the State Financial Corporation have given assistance mainly to develop
(a) agricultural farms
(b) cottage industry
(c) large-scale industries
(d) medium and small-scale industries
(e) None of the above
Ans: (d) medium and small-scale industries
Q794. Who took over as the fourth Deputy Governor of the Reserve Bank of India (RBI) during July 2014?
(a) Subhash Sheoratan Mundra
(b) Dr. Subir Gokarn
(c) Anand Sinha
(d) Urjit R. Patel
(e) None of these
Ans: (a) Subhash Sheoratan Mundra
Q795. Which of the following committee is associated with the review of Insider Trading Regulations?
(a) Sodhi Committee
(b) Sinha Committee
(c) Tarapore Committee
(d) Chandrashekhar Committee
(e) None of these
Ans: (a) Sodhi Committee
Q796. Savings account with zero balance can be opened for
(a) persons of high net worth
(b) employees of IT companies
(c) weaker sections of society
(d) women customers
(e) None of the above
Ans: (c) weaker sections of society
Q797. Which of the following is a correct statement?
(a) SBI is the sole authority to issue and manage currency in India
(b) A nationalised bank is the sole authority to issue and manage currency in India
(c) A cooperative bank is the sole authority to issue and manage currency in India
(d) RBI is the sole authority to issue and manage currency India
(e) None of these
Ans: (d) RBI is the sole authority to issue and manage currency India.
Q798. IRDA with its headquarters at…………. is the Regulatory Authority for all insurance companies in India including the Life Insurance Corporation of India
(a) Hyderabad
(b) Bengaluru
(c) Mumbai
(d) Delhi
(e) Chandigarh
Ans: (a) Hyderabad
Q799. Who introduced the Banking Ombudsmen Scheme?
(a) ARBI
(b) SBI
(c) Ministry of Finance
(d) NABARD
(e) None of these
Ans: (a) ARBI
Q800. Which amongst the following organizations make major credit policies for the Regional Rural Banks (RRBs)?
(a) NABARD
(b) Asian Development Bank
(c) World Bank
(d) State Bank of India
(e) None of these
Ans: (a) NABARD

Financial Awareness Section 9.

Q801. In a Poverty Pyramid index, which of the following segments of population faces the highest poverty risk?
(a) Formal Wage Employment
(b) Informal Self-Employment: Employers
(c) Regular Informal Wage Employment
(d) Informal Self Emloyment Own Account
(e) Casual Informal Wage Employment and Domestic Work
Ans:
(e)
Casual Informal Wage Employment and Domestic Work
Q802. Which one of the following is not a ‘Money Market Instrument’?
(a) Treasury Bills
(b) Commercial Paper
(c) Certificate of Deposit
(d) Equity Shares
(e) None of these
Ans: (d) Equity Shares
Q803. The part of a company’s earnings or profits which are paid out to shareholders is known as
(a) capital gains
(b) taxes
(c) interest on borrowings
(d) dividends
(e) penal interest
Ans: (d) dividends
Q804. In the recent Union Budget 2014-15, Agriculture University will be set up in _____ ?
(a) Haryana & Punjab
(b) Uttar Pradesh & Bihar
(c) Gujarat & Maharashtra
(d) Andhra Pradesh & Rajasthan
(e) None of these
Ans: (d) Andhra Pradesh & Rajasthan
Q805. RBI appointed a Committee to Review Governance of Boards of Banks in India chaired by P.J. Nayak would
1. review the regulatory compliance require-ments of banks’ boards in India.
2. judge what can be rationalised and where requirements need to be enhanced. 3. examine the working of banks’ boards.
4. analyse the representation on banks’ boards.
Select the answer from the codes given below: Codes:

(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) All of the above
(e) None of these
Ans: (d) All of the above
Q806. The first wholy Indian Bank was set-up in
(a) 1794
(b) 1894
(c) 1896
(d) 1902
(e) 1918
Ans: (c) 1896
Q807. New private banks are being given licences since
(a) 1991
(b) 1992
(c) 1993
(d) 1995
(e)
(d) 2001
Ans: (c) 1993
Q808. The currency notes issued by RBI have a cent percent cover in
(a) approved assets
(b) gold
(c) foreign exchange
(d) trustee securities
(e) None of these
Ans: (a) approved assets
Q809. Which one of the following tools is used by RBI for selective credit control?
(a) It advises banks to lend against certain commodities
(b) It advises banks to recall the loans for advances against certain commodities
(c) It advises banks to charge higher rate of interest for advance against certain commodities
(d) It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable
(e) None of the above
Ans: (b) It advises banks to recall the loans for advances against certain commodities
Q810. Regional Rural Banks (RRBs) are classified as
(a) scheduled commercial banks
(b) subsidiaries of the sponsor banks
(c) subsidiaries of NABARD
(d) All of the above
(e) None of the above
Ans: (a) scheduled commercial banks
Q811. For which of the following reasons, NABARD has set up joint liability groups (JLG) of farmers?
(a) To facilitate delivery of credit to farmers
(b) To facilitate better delivery of credit to farmers through informal sources
(c) To facilitate better delivery of credit to share croppers and those who do not have their own land
(d) To facilitate better delivery of credit to farmers through Panchayats
(e) None of these
Ans: (c) To facilitate better delivery of credit to share croppers and those who do not have their own land
Q812. Which of the following terms is NOT used in banking?
(a) Debit Card
(b) Credit Card
(c) Kisan Card
(d) ELISA Test
(e) None of these
Ans: (d) ELISA Test
Q813. Which of the following is a payment and settlement system used by the banks in India?
(a) Liquidity adjustment facility
(b) Real time gross settlement
(c) Forward rate agreements
(d) Central depository service
(e) Negotiated dealing system
Ans: (b) Real time gross settlement
Q814. Which of the following sectors makes maximum contribution to the national income of India?
(a) Services
(b) Agriculture
(c) Industry
(d) Both B and C
(e)None
Ans:
(e)None
Q815. The RBI has recently decided to withdraw from circulation of currency notes that had been issued before___?
(a) 2004
(b) 2006
(c) 2005
(d) 2008
(e) None of these
Ans: (c) 2005
Q816. Many a time we read a term ‘SEPA’ in financial newspapers. What is the full form of the term?
(a) Single Exchange Processing Agency
(b) Single Euro Payments Area
(c) Single Electronic Processing Agency
(d) Super Electronic Purchase Agency
(e) None of these
Ans: (b) Single Euro Payments Area
Q817. Capital Market Regulator is
(a) RBI
(b) IRDA
(c) NSE
(d) BSE
(e) SEBI
Ans:
(e)
SEBI
Q818. When was Reserve Bank of India Nationalised?
(a) 1947
(b) 1948
(c) 1949
(d) 195
(e) 1960
Ans: (c) 1949
Q819. The currency notes are issued by the Reserve Bank of India under the signature of
(a) Executive Director
(b) Deputy Governor
(c) Governor
(d) Secretary
(e) None of the above
Ans: (c) Governor
Q820. Paid-up share capital of Regional Rural Bank (RRB) is contributed by
(a) Central Government
(b) State Government
(c) Central Government, State Government and the Sponsor Commercial Bank in the ratio of 50: 15: 35 respectively
(d) NABARD, the concerned State Government and the Sponsor Commercial Bank in the ratio of 60: 20: 20 respectively
(e) All of the above
Ans: (b) State Government
Q821. Regional Rural Banks were set-up with
(a) Reserve Bank of India Act
(b) Regional Rural Banks Act, 1976
(c) NABARD Act
(d) HDFC Bank Act
(e) None of the above
Ans:
(e)
None of the above
Q822. Opening of maximum number of ATMs is an example of
(a) indirect marketing
(b) direct marketing
(c) social marketing
(d) All of these
(e) None of these
Ans: (b) direct marketing
Q823. Which of the following is/was NOT included in the agenda set for the Banking Reforms in India?
(a) Dismantling of administered interest rates
(b) Measures to strengthen risk management
(c) Promulgation of SARFAESI Act
(d) Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt
(e) Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market.
Ans: (d) Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt
Q824. The IMF and the World Bank were conceived as institutions to
(a) strengthen international economic cooperation and to help create a more stable and prosperous global economy
(b) IMF promotes international monetary cooperation
(c) The World Bank promotes long-term economic development and poverty reduction
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q825. Recently, RBI has proposed setting up of a trade Receivables and credit exchange (TCE) for financing ____?
(a) Regional Rural Banks
(b) Micro, Small and Medium Enterprises
(c) Public Sector Banks
(d) Non-banking Financial Corporations
(e) None of these
Ans: (b) Micro, Small and Medium Enterprises
Q826. Which one of the following dominate the organised sector?
(a) RBI
(b) Commercial Bank
(c) Co-operative Bank
(d) RRBs
(e) SBI
Ans: (b) Commercial Bank
Q827. Banks borrow money from the RBI on which of the following rates?
(a) Reverse Repo Rate
(b) Repo Rate
(c) SLR
(d) CRR
(e) Saving Rate
Ans: (b) Repo Rate
Q828. Which of the following is the Central Bank of the country?
(a) RBI
(b) SBI
(c) RRB
(d) NABARD
(e) None of these
Ans: (a) RBI
Q829. Which of the following is not the essential requirement for the endorsement as per Negotiable Instrument Act, 1881?
(a) It should be on the instrument
(b) It should be made by the holder or the maker
(c) Signatures should be in ink and not by pencil or rubber stamp
(d) It should contain unconditional order
(e) The endorser should sign the endorsement in the same style and with the same spellings as written in the instrument
Ans: (d) It should contain unconditional order
Q830. The State Co-operative Bank, being the Apex Bank at the state level
(a) operates as a balancing centre for the movement of the resources in the entire state
(b) acts as the custodian of the surplus resources and the reserves of the central co-operative banks and supplements them by attracting sizeable deposits and by obtaining loans from RB I
(c) provides the link between the RBI and the money market on one hand and the entire co-operative credit structure, on the other
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q831. Which of the following steps is taken for financial inclusion in India?
(a) The expansion of network of cooperative banks to provide credit to agriculture and saving facilities in rural areas
(b) Nationalisation of banks in 1969 and expansion of branches
(c) Creation of an elaborate framework of priority sector lending with mandated targets as part of a strategy to meet the savings and credit needs of large sections of the Indian population, who had no access to institutional finance
(d) All of the above
(e) None of these
Ans: (d) All of the above
Q832. With regard to the Export Policy of the Government of India, which of the following statements is correct?
(a) All commodities can be exported without licence
(b) Export licenses are required for only a few items
(c) Export licenses are required for all items
(d) All of the above
(e) None of the above
Ans: (b) Export licenses are required for only a few items
Q833. The services provided by merchant bankers includes
I. management of mutual funds.
II. public issues.
III. dealing with the corporate clients and advising them on various issues.
Select the correct answer using the codes given below

(a) Only I
(b) I and II
(c) II and III
(d) All of these
(e) None of these
Ans: (d) All of these
Q834. On 20 August 2014 the Finance Ministry ordered a forensic audit to be done at the branches of two banks in view of the reports of misappropriation of funds worth Rs. 436 crore. Which two banks are involved in this matter?
(a) Allahabad bank and Dena Bank
(b) Dena Bank and Oriental Bank of Commerce (OBC)
(c) Punjab National Bank and Punjab Sindh Bank
(d) Union Bank of India and Oriental Bank of Commerce (OBC)
(e) None of these
Ans: (b) Dena Bank and Oriental Bank of Commerce (OBC)
Q835. World Economic Situation and Prospects Report is associated with:
(a) IMF
(b) World Bank
(c) United Nations
(d) WTO
(e) None of these
Ans: (c) United Nations
Q836. Which of the following is not a public sector bank?
(a) State of Hyderabad
(b) Central Bank of India
(c) Regional Rural Bank
(d) HDFC Bank
(e) None of the above
Ans: (d) HDFC Bank
Q837. Which of the following states became the first state in the country to launch RBI,s e-payment system for commercial tax payers?
(a) Andhra Pradesh
(b) Kerala
(c) Gujrat
(d) Maharashtra
(e) Karnataka
Ans:
(e)
Karnataka
Q838. Which of the following is/are key policy rates used by RBI to influence interest rates?
I. Bank rate and repo rate
II. Reverse repo rate
III. CRR and SLR
Select the correct answer using the codes given below

(a) Only I
(b) Only II
(c) Only III
(d) All of these
(e) None of these
Ans: (c) Only III
Q839. When was Ombuds Men Scheme first introduced?
(a) November 2006
(b) October 1981
(c) June 1995
(d) January 1998
(e) July 1996
Ans: (c) June 1995
Q840. Which of the following is not true about the National Rural Employment Guarantee Act (NREGA)?
(1) NREGA was enacted first to provide job to rural people only but now people in urban areas can also avail the jobs under it
(2) NREGA is applicable in all districts of the country now
(3) NREGA initially provided 100 days job but now the number of days has been increased to 15 0

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (b) Only (2)
Q841. Which of the following acts is specially launched to facilitate banks in recovery of bad loans?
(a) RBI Act
(b) Banking Regulation Act
(c) Companies Act
(d) Income Tax Act
(e) SARF AESI Act
Ans:
(e)
SARF AESI Act
Q842. Which one of the following is a retail banking product?
(a) Home Loans
(b) Working capital finance
(c) Corporate term loans
(d) Infrastructure financing
(e) Export Credit
Ans: (b) Working capital finance
Q843. The term ‘Smart Money” refers to __________
(a) Foreign Currency
(b) Internet Banking
(c) US Dollars
(d) Travelers’ cheques
(e) Credit Cards
Ans:
(e)
Credit Cards
Q844. The union government has announced a nationwide scheme “Rashtriya Gokul Mission” which aims to
(a) Eliminate diseases of cattle
(b) Increase milk production
(c) Curb slaughtering of cattle
(d) Protect the indigenous breed of cows
(e) None of these
Ans: (d) Protect the indigenous breed of cows
Q845. Which of the following are the recommendations of the RBI Expert Committee to revise and strengthen the monetary policy framework?
1. It recommended that a new Consumer Price Index (CPI) should be adopted by Reserve Bank of India (RBI) to anchor the monetary policy.
2. The committee has also set an inflation target at 4 percent with a band of plus/ minus 2 percent around it. 3. The monetary policy decision should be vested in the hands of the Monetary Policy Committee (MP
(c) that will be headed by the Governor.
4. Not to detach Open Market Operations (OMOs) from the fiscal operations and instead linked solely to the liquidity management.
Select the answer from the codes given below: Codes:

(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) All of the above
(e) None of these
Ans: (a) 1, 2 and 3
Q846. When was SBI established?
(a) 1st April, 1935
(b) 31st July, 1969
(c) 5th May, 1955
(d) 1st July, 1955
(e) 5th May, 1960
Ans: (d) 1st July, 1955
Q847. Crossing of cheques makes them
(a) invalid document
(b) ineligible to endorse to person other than the payee
(c) remain the same in all respect, it is only a practice
(d) eligible for payment irrespective of sufficient balance in the account
(e) ineligible to get cash across the bank counter
Ans: (b) ineligible to endorse to person other than the payee
Q848. Which of the following do not fall within the functions of the Reserve Bank of India?
(a) Regulation of currency
(b) Control of credit
(c) Banker of the government, banker’s bank and lender of the last resort
(d) Accepting deposits and making loans and advances to public
(e) None of the above
Ans: (d) Accepting deposits and making loans and advances to public
Q849. Under provisions of which one of the following Acts has the Reserve Bank of India has the power to regulate, supervise and control the banking sector?
(a) RBI Act
(b) Banking Regulation Act
(c) Negotiable Instruments Act
(d) RBI and Banking Regulation Act
(e) None of the above
Ans: (b) Banking Regulation Act
Q850. Which of the following agencies/ organisations in India maintains the Micro Finance Development and Equity Fund which was in news recently?
(a) Confederation of Industries in India (CII)
(b) Indian Bank’s Association (IBA)
(c) Small Industries Development Bank of India (SIDBI)
(d) Reserve Bank of India (RBI)
(e) National Bank for Agriculture and Rural Development (NABARD)
Ans:
(e)
National Bank for Agriculture and Rural Development (NABARD)
Q851. Loansofsmallorverysmallamountsgivento low-income-group people are known as
(a) Investment Loans
(b) Micro Credit
(c) Saving loans
(d) Secured loans
(e) Cash credit loans
Ans: (b) Micro Credit
Q852. Expand the term SWIFT
(a) Society for Worldwide International Financial Telecommunications
(b) Society for Worldwide Interbank Financial Telecommunication
(c) Society for Worldwide International Financial Transfers
(d) Society for Worldwide Interbank Fiscal
(e) None of these
Ans: (a) Society for Worldwide International Financial Telecommunications
Q853. Bridge loans refer to
(a) loans granted to construction companies for construction of bridges
(b) loan granted to PWD for construction of bridges over rivers
(c) interim finance allowed by banks to their customers, pending disbursement of term loans by financial institutions
(d) loan granted to railway for construction of bridges
(e) None of these
Ans: (c) interim finance allowed by banks to their customers, pending disbursement of term loans by financial institutions
Q854. Inflation can defined as
(a) a persistent rise in general price level
(b) a persistent fall in general price level
(c) an increase purchasing power
(d) increase in value of money
(e) decrease in money
Ans: (a) a persistent rise in general price level
Q855. India on 2 January 2014 has signed a credit agreement of 160 million dollar with World Bank for the modernization of
(a) Uttar Pradesh Road Sector
(b) Rajasthan Road Sector
(c) Bihar Road Sector
(d) West Bengal Road Sector
(e) None of these
Ans: (b) Rajasthan Road Sector
Q856. What is Forex?
(a) It is buying of foreign currency
(b) It is selling of foreign currency
(c) It is buying of one currency and selling of another currency
(d) It is simultaneous buying of one currency and selling of another currency
(e) None of these
Ans: (d) It is simultaneous buying of one currency and selling of another currency.
Q857. Which of the following is the regulator of the credit rating agencies in India?
(a) RBI
(b) SBI
(c) SIDBI
(d) SEBI
(e) None of these
Ans: (d) SEBI
Q858. Generally, the minimum rate below which the banks do not lend is known as
(a) floor rate
(b) repo rate
(c) highest rate
(d) base rate
(e) All of the above
Ans: (d) base rate
Q859. The approved assets against which currency notes are issued by RBI comprise of
(a) gold coin and billion and rupee coin
(b) foreign securities and Government of India rupee securities of any maturity
(c) bills of exchange and promissory notes payable in India which are eligible for purchase by RBI
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q860. For the purpose of Income Tax Act, 1961, the Regional rural banks (RRBs) are treated as
(a) scheduled commercial banks
(b) non-scheduled banks
(c) nationalised banks
(d) co-operative banks
(e) None of the above
Ans: (c) nationalised banks
Q861. Regional Rural Banks carry on normal banking business as defined in
(a) Reserve Bank of India Act
(b) Banking Regulation Act, 1949
(c) Regional Rural Bank Act, 1949
(d) Companies Act, 1956
(e) None of the above
Ans: (b) Banking Regulation Act, 1949
Q862. Telebanking service is based on
(a) virtual banking
(b) online banking
(c) voice banking
(d) core banking
(e) None of these
Ans: (c) voice banking
Q863. One of the major emphasis of Basel II is that banks should have ––––
(a) adequate Capital Adequacy Ratio
(b) only few branches in urban centres
(c) more and more branches in rural areas
(d) core banking mode of operation
(e) all the above to comply with Basel II norms
Ans: (a) adequate Capital Adequacy Ratio
Q864. As per the reports published by the World Bank, what percentage of Indian population lives below the new International Poverty Line?
(a) 30%
(b) 62%
(c) 52%
(d) 42%
(e) 68%
Ans: (d) 42%
Q865. Which among the following is the largest foreign bank operating in India in terms of asset base?
(a) Stanchart
(b) HSBC
(c) Citibank
(d) DBS
(e) None of these
Ans: (c) Citibank
Q866. National Saving Scheme (NSS-922) has been closed by the government since
(a) 1st November, 1999
(b) 1st November, 2000
(c) 1st November, 2001
(d) 1st November, 2002
(e) 1st November, 2003
Ans: (d) 1st November, 2002
Q867. Banking and financial services all over the world are regulated usually by the Monetary Authority of the land. Who controls this function in India?
(a) Ministry of Finance
(b) SEBI
(c) RBI
(d) IRDA
(e) FEDAI
Ans: (c) RBI
Q868. Bank rate as fixed by RBI, means
(a) rate of interest charged by banks from borrowers
(b) rate of interest on bank deposits
(c) rate of interest charged by RBI on its loans to banks
(d) rate of interest on inter-bank loans
(e) None of the above
Ans: (c) rate of interest charged by RBI on its loans to banks
Q869. Under the Negotiable Instrument Act, 1881, an instrument which is incomplete in some respects, is called a/an
(a) foreign instrument
(b) inland instrument
(c) inchoate instrument
(d) ambiguous instrument
(e) fictitious instrument
Ans: (c) inchoate instrument
Q870. Which of the following year marked the beginning of the history of agricultural cooperative banks in India?
(a) 1904
(b) 1905
(c) 1906
(d) 1907
(e) 1908
Ans: (a) 1904
Q871. The financial assistance of loans of Rs. 10000 by bank to a small borrower will be called
(a) business finance
(b) government finance
(c) micro finance
(d) small finance
(e) KYC finance
Ans: (c) micro finance
Q872. In India, which of the following agencies is responsible for announcing the Foreign Trade Policy?
(a) RBI
(b) EXIM Bank
(c) Foreign Ministry
(d) Industry and Commerce Ministry
(e) None of the above
Ans: (d) Industry and Commerce Ministry
Q873. Which was the first mutual fund started in India?
(a) SBI Mutual Fund
(b) Indian Bank Mutual Fund
(c) Kotak Pioneer Mutual Fund
(d) Unit Trust of India
(e) None of the above
Ans: (d) Unit Trust of India
Q874. Which international finance entity launched a $ 2.5-billion onshore Indian rupee bond programme recently so as to strengthen the capital market and support infrastructure development in India?
(a) International Union for Housing Finance (IUHF)
(b) International Finance Corporation (IFC)
(c) International Finance Organisation (IFO)
(d) Public Finance International (PFI)
(e) None of these
Ans: (b) International Finance Corporation (IFC)
Q875. Nachiket Mor committee has submitted its recommendations which are related to:
(a) Insider Trading
(b) Financial Inclusion
(c) Micro Financing
(d) Macro Financing
(e) None of these
Ans: (b) Financial Inclusion
Q876. In economics, it is generally believed that the main objective of a public sector financial company like bank is to
(a) employ more and more people
(b) maximise total profits
(c) maximise total production
(d) sell the goods at subsidised cost
(e) All of these
Ans: (d) sell the goods at subsidised cost
Q877. Reverse Repo is a tool used by RBI to
(a) inject liquidity
(b) absorb liquidity
(c) increase the liquidity with banking system
(d) to keep the liquidity at one level
(e) None of the above
Ans: (b) absorb liquidity
Q878. Which of the following rates signals the RBI’s long-term outlook on interest rates?
(a) Repo rate
(b) Reverse repo rate
(c) Bank rate
(d) SLR
(e) CRR
Ans: (c) Bank rate
Q879. Traveller’s cheques are valid for………
(a) Three months
(b) Six months
(c) One year
(d) No limit are valid till encashed
(e) None of the above
Ans: (d) No limit are valid till encashed
Q880. Which of the following schemes is/are now the part of the National Rural Employment Guarantee Act (NREGA)? ]
1. pardhan mantra gram sadak yojna
2. national food for work programme 3. sampooran grameen rojgar yojna

(a) Only (1)
(b) Only (2)
(c) Both (2) & (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (c) Both (2) & (3)
Q881. Non-performing assets are cause for serious concerns for banks. Why are these loans known as non-performing?
(a) Recovery of bank’s funds are difficult
(b) Interest on these accounts are not charged
(c) Banks have to make provision for these loans in their balance sheet
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q882. Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called _____________
(a) Statutory Liquidity Ratio
(b) Cash Reserve Ratio
(c) Bank Deposit
(d) Reserve Repo
(e) Government Securities
Ans: (b) Cash Reserve Ratio
Q883. In recent years it has been recognized increasingly that a large segment of the rural population is out of the reach of the formal banking services. Which of the following is the name of the concept floated to bring most of these rural persons in the net of financial and banking services?
(a) Corporate Governance
(b) Financial Inclusion
(c) Wealth Creation
(d) Credit Management
(e) Risk Management
Ans: (b) Financial Inclusion
Q884. The Reserve Bank of India is planning to launch a new category of banks called D-SIB. What does D-SIB stands for
(a) Domestic Systematically Important Banks
(b) Domestic Saving & Investment Banks
(c) Domestic Synchronised Important Banks
(d) Domestic Synchronised Improvised Banks
(e) None of these
Ans: (a) Domestic Systematically Important Banks
Q885. Which of the following organizations is selected by the RBI for issuing globally compatible Legal Entity Identifiers (LEIs)?
(a) Industrial Credit and Investment Corporation of India (ICICI)
(b) Clearing Corporation of India Ltd (CCIL)
(c) Housing Development Finance Corporation (HDF
(d) Security and Exchange Board of India (SEBI)
(e) None of these
Ans: (b) Clearing Corporation of India Ltd (CCIL)
Q886. The origin of the State Bank of India goes back to the first decade of the 19th century with the establishment of
(a) Bank of Calcutta
(b) Bank of Bengal
(c) Bank of Bombay
(d) Bank of Madras
(e) None of these
Ans: (a) Bank of Calcutta
Q887. When a bank dishonors a cheque
(a) it is called settlement of the cheque
(b) it is called withdrawing of the cheque
(c) it is called nullifying of the cheque
(d) it is called truncating of the cheque
(e) it is called return of the cheque unpaid
Ans:
(e)
it is called return of the cheque unpaid
Q888. Which of the following are the main functions of the Reserve Bank of India?
(a) Granding licences to commercial banks for opening branches in rural areas
(b) Accepting deposits from the public
(c) Regulating foreign exchange business
(d) Acting as note issuing authority, bankers’ bank and banker to the government
(e) None of the above
Ans: (d) Acting as note issuing authority, bankers’ bank and banker to the government
Q889. As we all know, the Bank Rate at present is fixed at 6%. What does it mean in context to the banking operations?
(a) No bank will be able to give loan to any patron at a rate lower than the Bank Rate
(b) Bank should give loan to their priority sector customers/borrowers at the rate of 6% only. They cannot charge less or more than this from their priority sector clients
(c) Banks are required to invest 6% of their total capital on financial inclusion and inclusive banking operations
(d) Banks will be required to give 6% of their total deposits to the Govt. of India for meeting its Balance of Trade requirements
(e) None of the above
Ans: (a) No bank will be able to give loan to any patron at a rate lower than the Bank Rate.
Q890. Each of the RRBs covers districts ranging from
(a) 1 to 15
(b) 2 to 25
(c) 3 to 25
(d) 2 to 15
(e) 1 to 5
Ans: (b) 2 to 25
Q891. Which of the following is the full form of KCC as used in the agriculture sector?
(a) Kisan Credit Card
(b) Kisan Credit Company
(c) Knowledge Credit Corporation
(d) Konkan Credit Corporation
(e) None of these
Ans: (a) Kisan Credit Card
Q892. Which of the following is known as Plastic Money?
(1) Demand Draft
(2) Credit Card
(3) Debit Card

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Both (2) and (3)
(e) All (1), (2) and (3)
Ans: (d) Both (2) and (3)
Q893. The right to retain possession only of those goods in respect of which the dues have arisen is called
(a) particular lien
(b) general lien
(c) right of set off
(d) All of these
(e) None of these
Ans: (a) particular lien
Q894. Reason for cost push inflation is
(a) increase in wage rate
(b) increase in interest rate
(c) increase in the price of raw material
(d) increase in indirect tax
(e) decrease in cost of production
Ans: (c) increase in the price of raw material
Q895. Which institution has been recognized by RBI recently to act as local operating unit for issuing globally compatible legal entity identifiers (LEI) in India?
(a) FICCI
(b) India Inc
(c) Clearing Corporation of India Ltd
(d) Financial Stability Board
(e) None of these
Ans: (c) Clearing Corporation of India Ltd.
Q896. Which of the following is not a part of the scheduled banking structure in India?
(a) Money Lenders
(b) Public Sector Banks
(c) Private Sector Banks
(d) Regional Rural Banks
(e) State Co-operative Banks
Ans: (a) Money Lenders
Q897. The recent decisionZ of the RBI to cut Cash Resereve Ratio (CRR) by 150 basis points (October 2008) will be able to infuse how much liquidity into the market?
(a) Rs. 10,000 crores
(b) Rs. 30,000 crores
(c) Rs. 40,000 crores
(d) Rs. 50,000 crores
(e) None of these
Ans: (c)Rs. 40,000 crores
Q898. SEBI, a regulator of securities market in India was established in the year 1988, but was empowered with statutory Powers in the form of Act in the year
(a) 1990
(b) 1991
(c) 1992
(d) 1993
(e) None of these
Ans: (c) 1992
Q899. Who is the final authority for deciding the design, form and material of bank notes?
(a) Central Government
(b) Reserve Bank of India
(c) Indian Banks Association
(d) Note Issuing Authority of India
(e) None of the above
Ans: (a) Central Government
Q900. With a view to increase their resource base, RRBs have been permitted to
(a) issue of credit/debit cards and settingup of ATMs
(b) open currency chests
(c) handle pension and other government business as sub-agents of those banks which are authorised to conduct government business
(d) Both A and B
(e) All of the above
Ans: (d) Both A and B

Financial Awareness Section 10.

Q901. Regional Rural Banks are classified under
(a) Land Developments Banks
(b) Co-operative Banks
(c) Commercial Banks
(d) Public Sector Banks
(e) None of the above
Ans: (d) Public Sector Banks
Q902. The best alternative banking service to branch banking to be the part of financial inclusion?
(a) Establishment of small branches
(b) Set-up ATMs
(c) Issuing of ATM cards
(d) Giving credit cards
(e) Mobile banking
Ans:
(e)
Mobile banking
Q903. WhichofthefollowingisNOTaGovernment of India undertaking?
(a) Oil India Ltd
(b) Sutlej Jal Vidyut Nigam Ltd
(c) ICICI Bank
(d) National Thermal Power Corporation Ltd
(e) Rural Electrification Corporation Ltd.
Ans: (c) ICICI Bank
Q904. What is the number of member states in the World Trade Organisation?
(a) 144
(b) 148
(c) 150
(d) 146
(e) 170
Ans: (d) 146
Q905. Consider the following statements:
1. The Reserve Bank of India (RBI) on 2 April 2014 granted in-principle approvals to IDFC Ltd and Bandhan Financial Services Pvt. Ltd to start new banks in India.
2. These approvals have been granted under the guidelines on licensing of new banks in the public sector. 3. The two have been granted the permission to set-up banks from a field of 25 aspirants. Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
(e) None of these
Ans: (c) 1 and 3 only
Q906. Match the following: List I List II A. Agricultural Sector
1. Unit Fund B. Industrial Sector
2. Enacted by Parliament in 1976 C. Unorganised Sector 3. NABARD D. RRB
4. Public Issue Codes: A B C D

(a) 3 4 1 2
(b) 4 3 2 1
(c) 1 2 3 4
(d) 3 2 4 1
(e) 2 3 1 4
Ans: (a) 3 4 1 2
Q907. Which of the following is/are the objective (s) of our monetary policy?
(1) To anchor inflation expectations
(2) To actively manage liquidity
(3) To maintain interest rate regime consistent with price output and financial stability

(a) Only (1)
(b) All (1), (2) & (3)
(c) Both (1) & (3)
(d) Only (2)
(e) None of these
Ans: (b) All (1), (2) & (3)
Q908. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means
(a) sale or purchase of government securities
(b) issuance of different types of bonds
(c) auction of gold
(d) to make available direct finance to borrowers
(e) None of the above
Ans: (a) sale or purchase of government securities
Q909. Which of the following acts helps a bank in its day-to-day activities?
(a) Competition Act
(b) Negotiable Instruments Act
(c) Hindu Marriage Act
(d) Hindu Succession Act
(e) NRI Act
Ans: (b) Negotiable Instruments Act
Q910. Which of the following Co-operative Banks is considered as the first Co-operative Bank in India?
(a) Greater Bombay Co-operative Bank Limited
(b) Abhyudaya Co-operative Bank Limited
(c) Ahmedabad Mercantile Co-operative Bank Limited
(d) Amanath Co-operative Bank Limited
(e) Anyonya Co-operative Bank
Ans:
(e)
Anyonya Co-operative Bank
Q911. Co-operative development bank was set-up by
(a) NABARD
(b) RBI
(c) SBI
(d) Central Government
(e) None of these
Ans: (a) NABARD
Q912. The balance of trade is given by
(a) income receipts minus income payments on investments
(b) the balance of unilateral transfers
(c) merchandise exports plus service exports minus the sum of merchandise and service imports
(d) merchandise exports minus merchandise imports
(e) the balance on current account
Ans:
(e)
the balance on current account
Q913. Which of the following mobilise (s) the savings of the public to specifically invest in the industrial securities?
(a) U T I
(b) L I C
(c) G I C
(d) All of these
(e) None of these
Ans: (d) All of these
Q914. What is the name of the ambitious e-governance project of the Union Govt., which was approved by the Union Cabinet recently and which aims to ensure that government services are available to citizens electronically?
(a) Digital India Project
(b) Adhunik Bharat Project
(c) Digital Bharat Project
(d) Nav Bharat Nirmaan Project
(e) None of these
Ans: (a) Digital India Project
Q915. RBI has introduced Inflation Indexed Bond which have the locking period of:
(a) 5 years
(b) 10 years
(c) 15 years
(d) 20 years
(e) None of these
Ans: (b) 10 years
Q916. Which of the following is not required for opening a bank account?
(a) Identity proof
(b) Address proof
(c) Recent photographs
(d) Domicile certificate
(e) None of the above
Ans: (d) Domicile certificate
Q917. What is Repo Rate?
(a) It is a rate at which RBI sell government securities to banks
(b) It is a rate at which RBI buys government securities from banks
(c) It is a rate at which RBI allows small loans in the market
(d) It is a rate which is offered by Banks to their most valued customers or prime customers
(e) None of the above
Ans: (b) It is a rate at which RBI buys government securities from banks
Q918. Proposals for setting up of new banks are under active consideration. Which organisation gives the permission?
(a) RBI
(b) Indian Banks Association
(c) Finance Ministry
(d) Cabinet Committee on Economic Affairs
(e) None of the above
Ans: (a) RBI
Q919. Money laundering normally involved
(a) placement of funds
(b) layering of funds
(c) integrating of fund
(d) All of these
(e) None of these
Ans: (d) All of these
Q920. Micro credit or micro finance is a novel approach to banking with the poor. In this approach bank credit is extended to the poor through
(a) Self Help Groups
(b) Anganwadis
(c) Cooperative Credit Societies
(d) Reserve Bank of India
(e) Small Industries Development Bank
Ans: (a) Self Help Groups
Q921. Which among the following is related to bank risks?
(a) Deposits
(b) Bank funds
(c) NPA
(d) All of these
(e) None of these
Ans: (c) NPA
Q922. Interest below which a bank is not expected to lend to customers is known as _____________
(a) Deposit Rate
(b) Base Rate
(c) Prime Lending Rate
(d) Bank Rate
(e) Discount Rate
Ans: (b) Base Rate
Q923. When the growth of GDP in a country slows down suddenly, people start losing their jobs and the situation continues for several weeks, what name is given to this state of economy (A big country was in this state recently)?
(a) Inflation
(b) Recession
(c) Deflation
(d) Economic boom
(e) None of these
Ans: (b) Recession
Q924. Which among the following countries will become the 19th member of the eurozone as it is set to adopt the euro on 1 January 2015?
(a) Portugal
(b) Greece
(c) Lithuania
(d) Latvia
(e) None of these
Ans: (c) Lithuania
Q925. Consider the following facts about Bhartiya Mahila Bank:
1. BMB was inaugurated on 19th November, 2013, the birth anniversary of Late Indira Gandh i.
2. Usha Ananthasubramanian is the founder Chairperson of the BMB. 3. BMB offered 4.5% interest rate on savings bank deposits upto Rs. 1 lakh and 5% on deposits above Rs. 1 lakh. The correct codes are

(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) All of these
(e) None of these
Ans: (a) 1 only
Q926. Which bank came into existence in 1921 when three banks namely, Bank of Bengal (1806), Bank of Bombay (1840) and Bank of Madras (1843) were reorganised and amalgamated to form a single banking entity?
(a) Imperial Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) Punjab National Bank
(e) None of the above
Ans: (a) Imperial Bank of India
Q927. In a bank which of the following are the usual types of Deposits accounts?
(a) Savings accounts, Electricity accounts and Insurance Premium accounts
(b) Fixed deposits, Post office Savings Bank accounts and Current Deposit accounts
(c) Current Accounts, Saving Bank accounts and Term Deposit accounts
(d) Loan accounts, Savings Bank accounts and Term Deposit accounts
(e) Current Bill accounts and Term Deposits accounts
Ans: (c) Current Accounts, Saving Bank accounts and Term Deposit accounts
Q928. The Public Debt Office of the Reserve Bank of India
(a) is a central depository for all types of Government securities except Treasury Bills
(b) attends to the function of note issue the Reserve Bank of India
(c) is responsible for maintaining external value of rupee
(d) controls balance of payment position of the Government of India
(e) None of the above
Ans: (a) is a central depository for all types of Government securities except Treasury Bills
Q929. As we all know, the RBI has raised the Cash Reserve Ratio (CRR) by 25 bps, in April 201 0. What action will banks have to take to implement the same?
(1) They will have to deposit some more money with the RBI as reserve money
(2) Banks will be required to give some more loan to projects of the priority sector
(3) Banks will be required to give a loan equivalent to the CRR to the Govt. of India for its day to day expenditure as and when required

(a) Only 1
(b) Only 2
(c) Only 3
(d) Only 1 and 2
(e) All 1, 2 and 3
Ans: (a) Only 1
Q930. Regional rural banks are working in all the states of India except
(a) Sikkim
(b) Jammu and Kashmir
(c) Goa
(d) Sikkim and Goa
(e) Assam
Ans: (d) Sikkim and Goa
Q931. Which of the following is an employmentcreating programme of the Govt of India?
(a) MNREGA
(b) Bharat Nirman
(c) Kalpana-I
(d) ASHA
(e) Swajaldhara
Ans: (a) MNREGA
Q932. Many times we read a term CBS used is banking operations. What is the full form of the letter C in the term ‘CBS’?
(a) Complete
(b) Credit
(c) Continuous
(d) Core
(e) None of these
Ans: (d) Core
Q933. Land development banks provide longterm credit for schemes of basic importance to agriculture as
(a) minor irrigation purposes like wells, dug-cum-bore wells, tubewells, pump sets and irrigation tanks
(b) mechanisation of agriculture i.e., loans for purposes of tractors, power tillers, threshers, etc
(c) land reclamation, soil conservation, plantation of fruit orchards, dairy development schemes etc involving heavy expenditure
(d) Both A and B
(e)All
Ans:
(e)All
Q934. Which of the following is not a reason for demand pull inflation?
(a) Shortage of consumer goods
(b) More exports
(c) Economic growth
(d) Less import
(e) More exports and less imports
Ans: (a) Shortage of consumer goods
Q935. A panel of Reserve Bank of India has suggested to set-up specialized banks to cater to the low income households and small businesses. These banks will ensure that every citizen have a bank account by 201 6. The panel was headed by
(a) Mukul Mudgal
(b) Nachiket Mor
(c) Raghuram Rajan
(d) Bilal Nazaki
(e) None of these
Ans: (b) Nachiket Mor
Q936. Which of the following is not a part of the scheduled banking structure in India?
(a) State Co-operative Banks
(b) Public Sector Banks
(c) Private Sector Banks
(d) Regional Rural Banks
(e) Moneylenders
Ans:
(e)
Moneylenders
Q937. Whenever RBI does some Open Market Operation Transactions, actually it wishes to regulate which of the following?
(a) Inflation only
(b) Liquidity in economy
(c) Borrowing powers of the banks
(d) Flow of Foreign Direct Investments
(e) None of these
Ans: (b) Liquidity in economy
Q938. CGTMSE stands for
(a) Central Government Fund Trust for Medium and Small Enterprises
(b) Credit Guarantee Fund for Medium Size Enterprises
(c) Central Government Transfer Fund for Multispecialty Micro Enterprises
(d) Credit Guarantee Fund Trust for Micro and Small Enterprises
(e) None of the above
Ans: (d) Credit Guarantee Fund Trust for Micro and Small Enterprises
Q939. Whenever somebody needs foreign currency against Indian Rupee, banks give equivalent amount of desired currency based on prevalent?
(a) Bank rate
(b) Currency rate
(c) Policy rate
(d) Exchange rate
(e) Base rate
Ans: (d) Exchange rate
Q940. The total authorised capital of RRBs was originally fixed at Rs. 1 crore which has since been raised to
(a) Rs. 2 crore
(b) Rs. 3 crore
(c) Rs. 5 crore
(d) Rs. 7 crore
(e) Rs. 10 crore
Ans: (b)Rs. 3 crore
Q941. NABARD provides refinance to
(a) Scheduled commercial banks
(b) Co-operative banks
(c) Regional rural banks
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q942. Which of the following is/are the major concepts visible in today’s banking industry in India?
I. Risk-based management
II. Growing competition
III. IT initiatives
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) I and III
(e) All of these
Ans:
(e)
All of these
Q943. Which of the following is NOT associated with climate change and/or global warming?
(a) Basel norms
(b) Bali Meet 2007
(c) Copenhagen Conference
(d) Kyoto Protocol
(e) Bangkok Meet in 2009
Ans: (a) Basel norms
Q944. Who have the largest share of world trade?
(a) European Union, USA
(b) Japan
(c) Canada
(d) All of these
(e) None of these
Ans: (d) All of these
Q945. The Reserve Bank of India on 1 April 2014 adopted the Consumer Price Index (CPI) as the key measure of Inflation. It was adopted in the first bi-monthly monetary policy statement for 2014-1 5. It was adopted on the basis of recommendations of which Committee report?
(a) Urjit R Patel Committee
(b) A Ghosh Committee
(c) C Rao Committee
(d) Bhagwati Committee
(e) None of these
Ans: (a) Urjit R Patel Committee
Q946. A scheduled bank is one
(a) which conforms to the requirements of Schedule III of the Banking Regulation Act, 1949
(b) which has been declared as a scheduled bank by the Government of India
(c) which has deposits exceeding Rs. 10 crore
(d) which has its name added to the second schedule of the Reserve Bank of India Act, 1934
(e) None of the above
Ans: (d) which has its name added to the second schedule of the Reserve Bank of India Act, 1934
Q947. Which of the following is/are key policy rates used by RBI to influence interest rates?
(1) Bank Rate and Repo Rate
(2) Reverse Repo Rate
(3) CRR and SLR

(a) Only (1)
(b) Only (2)
(c) All (1), (2) & (3)
(d) Only (3)
(e) Both (1) & (3)
Ans: (c) All (1), (2) & (3)
Q948. Which of the following statements about the money market is/are true?
(a) Not all commercial banks deal for their customers in the secondary market
(b) Money markets are used extensively by businesses both to warehouse, surplus funds and to raise short-term funds
(c) The single most influential participant in the US money market is the US Treasury Department
(d) Both A and B
(e) All of the above
Ans: (d) Both A and B
Q949. All of the following are examples of Quasi negotiable instruments, under the Negotiable Instrument Act, 1881, except
(a) dividend warrants
(b) share warrants
(c) bearer debentures
(d) promissory note
(e) None of these
Ans: (d) promissory note
Q950. The earliest efforts in the direction of setting up special land mortgage banks were made in
(a) WestBengal when thefirst Co-operative Land Mortgage Bank was organised in 24 Parganas in 1884
(b) In Punjab when the first Co-operative Land Mortgage Bank was organised in Jhang in 1920
(c) Orissa when the first Co-operative Land Mortgage Bank was organised in Jhang in 1834
(d) All of these
(e) None of these
Ans: (b) In Punjab when the first Co-operative Land Mortgage Bank was organised in Jhang in 1920
Q951. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What assistance does the farmer receive in this way?
(a) Credit facility for crops etc against an approved limit
(b) Short-term credit facility against value of his crops
(c) Long-term credit is provided against his land holdings
(d) Loan is permissible against crops sold, but payment yet to be received by the farmer
(e) None of these
Ans: (a) Credit facility for crops etc against an approved limit
Q952. The difference between visible exports and visible imports is defined as
(a) Balance of trade
(b) Balance of payments
(c) Balanced terms of trade
(d) Gains from trade
(e) All of these
Ans: (a) Balance of trade
Q953. Banks are authorised to sell third party products. Which are these products?
(a) Mutual funds
(b) Term deposits
(c) Credit cards
(d) Gift cheques
(e) None of these
Ans: (a) Mutual funds
Q954. India’s capital market regulator SEBI recently ordered which NBFC entity to refund the money raised from some 5 8.5 million customers through collective investment schemes (CIS)?
(a) Unimax Agrotech Ltd
(b) Asia Agrotech Corp. Ltd
(c) Omaxe Agrotech Corp. Ltd
(d) Pearls Agrotech Corp. Ltd
(e) None of these
Ans: (d) Pearls Agrotech Corp. Ltd
Q955. Consider the following statements in regard to money market in India:
(1) It is a market for short-term and longterm funds with maturity ranging from overnight to one year
(2) It acts as an instrument of liquidity adjustment for the Central Bank
(3) It is a market for only long term funds. Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) only 3
(e) None of these
Ans: (b) 2 only
Q956. Which of the following statements is incorrect regarding a minor?
(a) A minor is a person who has not attained the gas of 18
(b) Minor does not have legal capacity to enter into a contract
(c) A current account in the name of minor can be opened when guardian of the minor operates this account
(d) A minor’s account should never be allowed to be overdrawn
(e) In the event of death of a minor, the money will be payable to the guardian
Ans: (c) A current account in the name of minor can be opened when guardian of the minor operates this account
Q957. Which of the following is not a function of the RBI?
(a) Maintaining Forex
(b) Deciding Bank Rate, CRR and SLR from time to time
(c) Opening Savings Accounts for general public
(d) Prescribing the Capital Adequancy Ratio
(e) Currency Management
Ans: (c) Opening Savings Accounts for general public
Q958. As we all know, Cash Reserve Ratio (CRR) is the percentage of the deposits keep in reserve with them. This ratio is also known as
(a) Repo rate
(b) Reverse repo rate
(c) SLR
(d) Liquidity ratio
(e) None of the above
Ans: (d) Liquidity ratio
Q959. Banker-Customer relationship is often considered a fiduciary one. What is this relation based on?
(a) Contract
(b) Faith
(c) Commercial
(d) Agent and principal
(e) None of these
Ans: (b) Faith
Q960. The concept of micro finance was launched in which of the following countries initially?
(a) Bangladesh
(b) India
(c) Egypt
(d) Israel
(e) Sri Lanka
Ans: (a) Bangladesh
Q961. Which of the following acts was framed specially to deal more effectively with the problem of non-performing assets in banking system?
(a) Companies Act
(b) Banking Regulation Act
(c) Foreign Exchange Management act
(d) Industrial Dispute Act
(e) SARFASESI Act
Ans:
(e)
SARFASESI Act
Q962. In banking business, when the borrowers avail a Term Loan, initially they are given a repayment holiday and this is referred as _____________
(a) Subsidy
(b) Interest Waiver
(c) Re-phasing
(d) Interest concession
(e) Moratorium
Ans:
(e)
Moratorium
Q963. What is Gross Domestic Product?
(a) It is the cost of production of all final goods and services made in the country
(b) It is the cost of services made within the borders of a country in a year
(c) It is the market value of all final goods and services made in the country
(d) It is the market value of all final goods and services made within the borders of a country in a year
(e) None of the above
Ans: (d) It is the market value of all final goods and services made within the borders of a country in a year
Q964. As of 2014, the BRICS nations represent what per cent of the World economy
(a) 12
(b) 15
(c) 18
(d) 23
(e) None of these
Ans: (c) 18
Q965. RBI increased the validity period of the in-principle approval of setting up of new banks from one year to
(a) 14 months
(b) 16 months
(c) 18 months
(d) 20 months
(e) None of these
Ans: (c) 18 months
Q966. Which bank became the State Bank of India in 1955?
(a) General Bank of India
(b) Bank of Hindustan
(c) Imperial Bank of India
(d) Federal Bank of India
(e) None of the above
Ans: (c) Imperial Bank of India
Q967. Which of the following cannot be called as a value added service offered by a bank?
(a) Special accounts for poor sections of society
(b) Accident insurance cover
(c) Instant credit of outstation cheques
(d) Free cheque books
(e) All of these
Ans: (b) Accident insurance cover
Q968. Which of the following are the instruments of Credit Control in the hands of the RBI?
I. Lowering or raising the discount and interest rates.
II. Raising the minimum support price of the major agro products.
III. Lowering or raising the minimum cash reserves maintained by the commercial banks.
Select the correct answer using the codes given below

(a) Only I
(b) Only II
(c) Only III
(d) Both I and III
(e) Both II and III
Ans: (d) Both I and III
Q969. The rate on which banks borrow from the RBI is called……
(a) SLR
(b) CRR
(c) Interest Rate
(d) Bank Rate
(e) Repo Rate
Ans: (d) Bank Rate
Q970. Which of the following is an example of NBFCs?
(a) Unit Trust of India
(b) Life Insurance Corporation
(c) General Insurance Corporation
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q971. Which of the following schemes is related exclusively to Financial Inclusion?
(a) Swawalamban
(b) Swadeshi
(c) Swabhiman
(d) SGSY
(e) None of these
Ans: (d) SGSY
Q972. The full form of PIN in the parlance of an ATM card is
(a) Permanent Information Number
(b) Personal Identification Number
(c) Professional Identification Number
(d) Permanent Identification Number
(e) Personal Index Number
Ans: (b) Personal Identification Number
Q973. When more than one bank is allowing credit facilities to one party in co-ordination with each other under a formal arrangement the arrangement is generally known as
(a) participation
(b) consortium
(c) syndication
(d) multiple banking
(e) None of these
Ans: (b) consortium
Q974. During inflation,
(a) exports becomes more expensive
(b) exports becomes more cheap
(c) imports becomes more expensive
(d) surplus balance of payment
(e) All of the above
Ans: (a) exports becomes more expensive
Q975. Who has been appointed as the Managing Director and Chief Executive Officer of General India Life Insurance?
(a) Arvind Mayaram
(b) Santosh Hegde
(c) JS Mathur
(d) Munish Sharda
(e) None of these
Ans: (d) Munish Sharda
Q976. Which of the following is the most active segment of the money market in India?
(a) Call Money/Notice Money Market
(b) Repo/Reverse Repo
(c) Commercial Paper (CP)
(d) Certificate of Deposit (CD)
(e) None of these
Ans: (a) Call Money/Notice Money Market
Q977. Which of the following financial product are NOT much popular in India as they have been launched only recently?
(a) Development Bonds
(b) Insurance Policies
(c) Mutual funds
(d) Sovereign Wealth Funds
(e) All are very popular products in India.
Ans: (d) Sovereign Wealth Funds
Q978. What is the full form of ‘CRR’ as used in banking sector?
(a) Crucial Reserve Rate
(b) Cash Reserve Ratio
(c) Compulsory Return Rate
(d) Credit and Reserve Ratio
(e) None of the above
Ans: (b) Cash Reserve Ratio
Q979. Which one of the following is the major component of the money supply in the Indian Economy?
(a) Currency component
(b) Deposit component
(c) Treasury bill with public
(d) Both A and B
(e)Both B and C
Ans: (d) Both A and B
Q980. Deposits with Regional Rural Banks (RRBs) are insured by
(a) Life Insurance Corporation of India
(b) General Insurance Corporation
(c) Deposit Insurance and Credit Gurantee Corporation
(d) None of the above
(e) All of the above
Ans: (a) Life Insurance Corporation of India
Q981. NABARD provides refinance assistance for
(a) promotion of agriculture
(b) promotion of small scale industries
(c) cottage and village industries
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q982. E-commerce is increasingly becoming a popular mode of doing business. What is this way of operating?
(a) Buying goods and services online from vendors
(b) Placing orders on the phones
(c) Getting 30 days credit period for payment
(d) Payment has to be made in advance before goods/ services are delivered
(e) None of the above
Ans: (a) Buying goods and services online from vendors
Q983. Many times we read in newspapers that a company is planning to bring a public issue. What does it mean?
(1) Shares of the company will be issued only throughpublic sector organisations like banks/Central financial institutions etc
(2) Shares of the company will be issued to general public only through primary market
(3) This means some stakeholders/ promoters are willing to leave the company. Hence they wish to sell their stock to the general public

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (b) Only (2)
Q984. Where is the Headquarters of World Trade Organisation?
(a) New Delhi
(b) New York
(c) Geneva
(d) Rome
(e) None of these
Ans: (c) Geneva
Q985. Consider the following statements:
1. Asian Development Outlook 2014 was released on 1 April 2014 by the Asian Development Bank.
2. According to the ADB Outlook 2014, developing Asia is expected to extend its steady growth from 6.1 percent in 2013 to 6.2 percent in 2014 and 6.4 percent in 201 5. 3. Asian Development 2014 was released on 1st January 2014 by ADB. Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 2
(c) 2 only
(d) only 3
(e) None of these
Ans: (b) 1 and 2
Q986. Which of the following can be identified as a demat account?
(a) Accounts which can have zero balance
(b) Accounts opened to facilitate repayment of loan
(c) Accounts in which shares of companies are traded in electronic form
(d) Accounts maintained by mutual fund companies for investors
(e) None of the above
Ans: (c) Accounts in which shares of companies are traded in electronic form
Q987. Which of the following rates signals is the RBI’s long-term outlook on interest rates?
(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate
(d) SLR
(e) CRR
Ans: (c) Bank Rate
Q988. Under which section of the Reserve Bank of India Act, the Reserve Bank has the sole right of note issue?
(a) Section 20
(b) Section 22
(c) Section 25
(d) Section 28
(e) Section 30
Ans: (b) Section 22
Q989. 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
(a) promissory note
(b) bill of lading
(c) bill of exchange
(d) endorsement
(e) None of these
Ans: (d) endorsement
Q990. What are the co-operative banks at the village level known as
(a) Central co-operative banks
(b) Primary agricultural co-operative societies
(c) Village co-operative banks
(d) State co-operative banks
(e) None of the above
Ans: (b) Primary agricultural co-operative societies
Q991. Which of the following will set-up core bank infrastructure for rural banks?
(a) SIDBI
(b) IBA
(c) RBI
(d) SBI
(e) NABARD
Ans:
(e)
NABARD
Q992. In which year was World Bank formed?
(a) 1945
(b) 1956
(c) 1960
(d) 1988
(e) 1978
Ans: (a) 1945
Q993. Axis Bank is a
(a) Public Sector Bank
(b) Private Sector Bank
(c) Co-operative Bank
(d) Foreign Bank
(e) Gramin Bank
Ans: (b) Private Sector Bank
Q994. The Reserve Bank of India recently announced its decision to reduce the number of mandated free transactions for savings bank account holders at other bank ATMs located in six metro cities from five to three per month. This reduction would come into effect from which date?
(a) 1 October 2014
(b) 25 October 2014
(c) 1 November 2014
(d) 1 December 2014
(e) None of these
Ans: (c) 1 November 2014
Q995. Which of the following can be the outcomes of very high inflation in the economy?
(1) Reduction in economic growth
(2) Increase in savings
(3) Reduction in exports.
Select the correct answer using the codes below:

(a) 1 and 3 only
(b) 3 and 4 only
(c) 2 and 3
(d) 1 and 4 only
(e) None of these
Ans: (d) 1 and 4 only
Q996. RBI has deregulated interest rate for savings accounts. What does it suggest?
(a) Customers will get the benefit of higher interest rates
(b) Banks will have the right to fix their interest rates independently
(c) Each bank will have their respective interest rates without the need to adhere to fixed interest rate common to all banks
(d) Banks will decide interest rates for individual customers according to their savings
(e) None of these
Ans: (c) Each bank will have their respective interest rates without the need to adhere to fixed interest rate common to all banks
Q997. Capital market regulator is
(a) RBI
(b) IRDA
(c) NSE
(d) BSE
(e) SEBI
Ans:
(e)
SEBI
Q998. At which of the following rates does the Central Bank lend to banks against government securities?
(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate
(d) SLR
(e) CRR
Ans:
(e)
CRR
Q999. A bank is under a statutory obligations to honour its customer’s cheques vide
(a) Section 10 of the Banking Regulation Act, 1949
(b) Section 3 of the RBI Act, 1934
(c) Section31 ofthe Negotiable Instruments Act, 1881
(d) All of the above
(e) None of the above
Ans: (c) Section31 ofthe Negotiable Instruments Act, 1881
Q1000. The National Bank for Agriculture and Rural Development (NABARD) gets some amount of its funds from which of the following organizations for its various schemes?
1. world bank
2. Bank of America 3. IDA

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) Only (1) & (3) both
Ans:
(e)
Only (1) & (3) both
Q1001. Where is the headquarter of SIDBI?
(a) Varanasi
(b) Lucknow
(c) New Delhi
(d) Kolkata
(e) Mumbai
Ans: (b) Lucknow
Q1002. The arrangement under which banks sell insurance products acting as the agents of the respective companies is called the
(a) Insurance joint venture
(b) Bancassurance Model
(c) Hybrid Insurance Model
(d) Insurance Broking
(e) Integrated Model
Ans: (b) Bancassurance Model
Q1003. In economic terms, the total market value of all final goods and services produced in a country in a given year is known as
(a) GNI
(b) GDP
(c) inflation
(d) PPP
(e) wealth of a nation
Ans: (b) GDP
Q1004. According to the latest available data what was India’s economic growth in 2013-14?
(a) 4.5%
(b) 4.7%
(c) 5.5%
(d) 5.7%
(e) None of these
Ans: (b) 4.7%
Q1005. Recently the Reserve Bank penalised three banks for violation of KYC norms and antimoney laundering guidelines. Which one is not among them?
(a) Axis Bank
(b) HDFC
(c) ICICI
(d) Kotak Mahindra Bank
(e) None of these
Ans: (d) Kotak Mahindra Bank

Financial Awareness Section 5.

Q401. Which one of the following will set up core banking infrastructure for rural banks?
(a) RBI
(b) NABARD
(c) SIDBI
(d) IBA
(e) None of these
Ans: (b) NABARD
Q402. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as
(a) Participation
(b) Consortium
(c) Syndication
(d) Multiple banking
(e) None of these
Ans: (b) Consortium
Q403. Mutual funds fall within supervisory purview of
(a) SBI
(b) RBI
(c) SEBI
(d) IRDA
(e) None of the above
Ans: (d) IRDA
Q404. In Union Budget 2014 -15, Exemption limits on income tax raised from _____
(a) Rs. 2 lakh to Rs. 2.5 lakh
(b) Rs. 2 lakh to Rs. 3 lakh
(c) Rs. 3 lakh to Rs. 3.5 lakh
(d) Rs. 2 lakh to Rs. 3.5 lakh
(e) Rs. 3 lakh to Rs. 4.5 lakh
Ans: (a)Rs. 2 lakh to Rs. 2.5 lakh
Q405. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
(a) Commercial Banks
(b) Co-operative Banks
(c) Regional Rural Banks
(d) Microfinance Institutions
(e) None of these
Ans: (a) Commercial Banks
Q406. How many banks were first nationalised?
(a) 10
(b) 12
(c) 14
(d) 16
(e) 24
Ans: (c) 14
Q407. 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
(a) Rs. 100000
(b) Rs. 200000
(c) Rs. 500000
(d) All of these
(e) None of these
Ans: (a)Rs. 100000
Q408. The Holidays for the Banks are declared as per _________
(a) Reserve Bank Act
(b) Banking Regulation Act
(c) Negotiable Instruments Act
(d) Securities and Exchange Board of India Act
(e) Companies Act
Ans: (c) Negotiable Instruments Act
Q409. Which of the following agencies/ organisations has decided to make major changes for ULIPs?
(a) IRDA
(b) RBI
(c) AMFI
(d) FRBI
(e) None of these
Ans: (a) IRDA
Q410. Which of the following is/are the rights of customer towards his banker?
(a) To receive a statement of his account from a banker
(b) To sue the bank for any lose and damages
(c) To sue the banker for not maintaining the secrecy of his account
(d) All of these
(e) None of these
Ans: (d) All of these
Q411. Which of the following is/are true about the National Rural Employment Guarantee Act?
(1) The Act is now known as Indira Gandhi National Rural Employment Guarantee Act
(2) The Act is now applicable to all the districts of the country
(3) Minimum wage fixed under this Act is now Rs. 250 per day

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of ‘these
Ans: (b) Only (2)
Q412. As reported in some newspapers/ magazines, some banks have decided to install Biometric ATMs so that fraudulent withdrawals can be prevented. Biometric ATMs will be able to do so as it also checks 1) signatures of the card holders
(2) fingerprints of the card holders
(3) skin colour of the card holders

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Both (2) & (3)
(e) All (1), (2) & (3)
Ans: (b) Only (2)
Q413. Bancassurance is
(a) an insurance scheme to insure bank deposits
(b) an insurance scheme exclusively for the employees of banks
(c) a composite financial service offering both banking and insurance products
(d) a bank deposit scheme exclusively for employees for insurance companies
(e) None of the above
Ans: (c) a composite financial service offering both banking and insurance products
Q414. GDP at factor cost is
(a) GDP minus indirect taxes plus subsidies
(b) GNP minus depreciation allowance
(c) NNP plus depreciation allowance
(d) GDP minus subsidies plus indirect taxes
(e) None of the above
Ans: (a) GDP minus indirect taxes plus subsidies
Q415. Name the place where Canara Bank launched its seventh overseas branch in June 2014
(a) London
(b) New York
(c) Leicester
(d) Shanghai
(e) Canada
Ans: (b) New York
Q416. Exim Bank concentrates on
(a) medium-term financing
(b) short-term financing
(c) short and medium-term financing
(d) short and long-term financing
(e) None of the above
Ans: (a) medium-term financing
Q417. As we read every now and then, the Monetary and Credit Policy is reviewed and changes/corrections are made frequently.Who amongst the following exactly takes this decision in India?
(a) Deputy Chairman, Planning Commission
(b) Prime Minister
(c) Finance Minster
(d) Chairman, Finance Commission
(e) None of these
Ans:
(e)
None of these
Q418. The interest rate at which the RBI lends to commercial banks in the short term to maintain liquidity is known as
(a) interest rate
(b) repo rate
(c) reverse repo rate
(d) bank rate
(e) None of the above
Ans: (b) repo rate
Q419. Rupee coins are the legal tender in India under the provisions of
(a) Reserve Bank of India Act, 1934
(b) Negotiable Instruments Act, 1881
(c) Banking Regulation Act, 1949
(d) Indian Coinage Act, 1906
(e) None of the above
Ans: (d) Indian Coinage Act, 1906
Q420. RRBs were set-up on
(a) 1975
(b) 1985
(c) 1991
(d) 2001
(e) 1965
Ans: (a) 1975
Q421. The financial assistance of loans of Rs. 10000 by a bank to very a small borrower will be called
(a) Business finance
(b) Government finance
(c) Micro finance
(d) Small finance
(e) KYC finance
Ans: (c) Micro finance
Q422. As we all know, more and more countries/ organisations are now going for noncash transactions and accordingly banks have launched many new products in the market for the same. Which of the following products is a non-cash transaction product?
(a) Only ATM Card
(b) Only Credit Card
(c) Only Prepaid Card
(d) Only Debit Card
(e) All are non-cash transaction products PRACTICE EXERCISE
Ans:
(e)
All are non-cash transaction products PRACTICE EXERCISE
Q423. Which of the following would be treated as an unsecured loan?
(a) Agricultural loan
(b) Personal loan
(c) Educational loan
(d) Vehicle loan
(e) Housing loan
Ans: (b) Personal loan
Q424. Which of the following is/are different categories of inflation?
I. Open and suppressed
II. Cost push
III. Deman pull
Select the correct answer using the codes given below:

(a) Only I
(b) I and II
(c) II and III
(d) All of these
(e) None of these
Ans: (c) II and III
Q425. Consider the following banks:
1. ABN Amro Bank
2. Barclays Bank 3. Kookmin Bank Which of the following correctly represents their countries of origin?

(a) Dutch, USA, Japan
(b) Japan, USA, China
(c) Dutch, UK, South Korea
(d) Dutch, USA, China
(e) None of these
Ans: (c) Dutch, UK, South Korea
Q426. Consider the following statements:
1. In Indian Commercial Banking System, the number of the Non-scheduled Bank is more than the Scheduled Banks.
2. The Non-scheduled Banks in Indian Commercial Banking Systems are even less than a dozen in number. Which of the statements given above is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
(e) Can’t say
Ans: (b) Only 2
Q427. As reported in various newspapers, the Reserve Bank of India is planning to allow more and more banks to function as “Local Area Banks”. This will help RBI in the implementation of which of the following of its plans/drives?
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (1) & (2)
(e) None of these
Ans: (a) Only (1)
Q428. The RBI has adopted……. model, in which mobile banking is promoted through business correspondents of banks
(a) Bank Led
(b) Bank Mobile
(c)
(d) Mobile
(d) All of these
(e) None of these
Ans: (d) All of these
Q429. With reference to a cheque which of the following is the “drawee bank”?
(a) The bank that collects the cheque
(b) The payee’s bank
(c) The endorsee’s bank
(d) The endorser’s bank
(e) The bank upon which the cheque is drawn
Ans:
(e)
The bank upon which the cheque is drawn
Q430. As per the reports published in various journals and newspapers, the “small borrowers” in rural areas still prefer to take informal route for their credit needs. Which of the following is the “informal route” of credit in the financial sector?
(a) Credit cards
(b) Loan against gold from financial institute
(c) Debit cards
(d) Money lender
(e) None of these
Ans: (d) Money lender
Q431. What is not an innovation likely to explain the high repayment rates of Micro Credit Programmes?
(a) Promising larger and larger loans for borrowers in good standing
(b) Public repayments
(c) Strong competition between numerous Micro Credit Programmes to reduce interest rates
(d) Starting repayments before investments are likely to have borne fruit
(e) None of the above
Ans: (c) Strong competition between numerous Micro Credit Programmes to reduce interest rates
Q432. Currency Swap is an instrument to manage
(a) currency risk
(b) interest rate risk
(c) currency and interest rate risk
(d) cash flows in different currencies
(e) All of the above
Ans: (d) cash flows in different currencies
Q433. Board for Financial Supervision (BFS) constituted in 1994 by RBI to undertake consolidated supervision of
(a) commercial banks
(b) financial institutions
(c) non-banking finance companies
(d) None of the above
(e) All of the above
Ans:
(e)
All of the above
Q434. Financial inclusion is being emphasised by RBI for
(a) providing basic banking services to the unbanked areas
(b) providing loans to the unbanked population
(c) opening accounts for the poor
(d) bringing branches of all banks under one authority
(e) None of these
Ans: (a) providing basic banking services to the unbanked areas
Q435. As per the status on January 28, 2014 the Marginal Standing Facility (MSF) stands at-
(a) 8.5%
(b) 8.75%
(c) 9.0%
(d) 9.25%
(e) None of these
Ans: (c) 9.0%
Q436. How many banks are presently associates of State Bank of India?
(a) 8
(b) 7
(c) 6
(d) 5
(e) 4
Ans: (d) 5
Q437. Which of the following is not a function of the RBI?
(a) Maintaining Forex
(b) Deciding Bank Rate, CRR and SLR from time to time
(c) Opening Savings Accounts for general public
(d) Prescribing the Capital Adequacy Ratio
(e) Currency Management
Ans: (c) Opening Savings Accounts for general public
Q438. The first Governor of the Reserve Bank of India from 1st April, 1935 to 30th June, 1937 was
(a) Sir Osborne Smith
(b) Sir James Taylor
(c) CD Deshmukh
(d) Sir Benegal Rama Rao
(e) KG Ambegaonkar
Ans: (a) Sir Osborne Smith
Q439. Which of the following is the popular name of the norms by which a bank satisfies itself about the customer’s identity and activities?
(a) Basel norms
(b) KYC norms
(c) Service norms
(d) Lending norms
(e) None of these
Ans: (b) KYC norms
Q440. Many a time we read in newspapers about ‘Financial Inclusion’. What does it really mean?
(1) Allow the merger and acquisition of banks so that only few big banks exist and continue to cater to the need of corporate sector
(2) Expanding the network of banks in such a way that people from lower strata of society also get the benefit of services provided by banks
(3) Providing insurance cover to each and every citizen so that he/she can live a healthy and long life

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Both (1) & (2)
(e) All (1), (2) & (3)
Ans: (b) Only (2)
Q441. On July 12, 1982, the ARDC was merged into
(a) RBI
(b) NABARD
(c) EXIM Bank
(d) HDFC Bank
(e) None of these
Ans: (b) NABARD
Q442. Which of the following correctly describes what sub-prime lending is?
(1) Lending to the people who cannot return the loans
(2) Lending to the people who are highvalue customers of the banks
(3) Lending to those who are not a regular customer of a bank

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (c) Only (3)
Q443. What are major functions undertaken by merchant bankers?
(a) Issue management
(b) Capital structuring/ restructuring
(c) Market maker in capital market
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q444. In Union Budget 2014-15, the exemption on income for senior citizens has been raised to ____
(a) Rs. 2 lakh per annum
(b) v 2.5 lakh per annum
(c) Rs. 3 lakh per annum
(d) Rs. 3.5 lakh per annum
(e) Rs. 4 lakh per annum
Ans: (c)Rs. 3 lakh per annum
Q445. Choose the correct statements in the context of Cooperative Banks in India.
1. Cooperative Banks operate on no profit no loss basis.
2. Cooperative Banks are allowed to operate only in the agriculture sector. 3. NABARD is a Cooperative Bank

(a) 1 only
(b) 1 and 2
(c) 1 and 3
(d) Either 1 or 2
(e) None of these
Ans: (a) 1 only
Q446. When was the second phase of nationalisation done?
(a) 9th July, 1969
(b) 10th July, 1968
(c) 16th August, 1985
(d) 15th April, 1980
(e) None of the above
Ans: (d) 15th April, 1980
Q447. In case of FCNR
(2) Scheme, the period for fixed deposits is

(a) as applicable to resident accounts
(b) for terms not less than 1 year and not more than 5 years
(c) for terms not less than 2 years and not more than 6 years
(d) at the discretion of the bank
(e) None of the above
Ans: (b) for terms not less than 1 year and not more than 5 years
Q448. Interest on Savings deposit nowadays is _____________
(a) Fixed by RBI
(b) Fixed by the respective Banks
(c) Fixed by the Depositors
(d) Fixed as per the contract between Bank and the Consumer Court
(e) Not paid by the Bank
Ans: (b) Fixed by the respective Banks
Q449. Which of the following is/are objective (s) of our Monetary Policy?
I. To anchor inflation expectations.
II. To actively manage liquidity.
II. To maintain interest rate regime consistent with price output and financial stability.
Select the correct answer using the codes given below

(a) Only I
(b) Only II
(c) I and III
(d) All of the above
(e) None of the above
Ans: (b) Only II
Q450. Which one is true in respect of bank marketing?
(a) Bank marketing deal with providing services to satisfy customer’s financial needs and wants
(b) Bank marketing has to discover/ ascertain/anticipate the financial needs of the corporates
(c) Bank marketing may be required to satisfy the corporates and institutions, other related needs and wants
(d) Bank marketing means competitive element, efficiency and effectiveness in the process
(e) None of the above
Ans: (a) Bank marketing deal with providing services to satisfy customer’s financial needs and wants.
Q451. The Workers under the National Rural Employment Guarantee Act are encouraged to take their wages through bank and post office accounts. This step of the Govt. is to obtain which of the following goal (s)?
(1) Promote Banks business
(2) To minimise corrupt practices
(3) To encourage more and more people to join NREGA

(a) Only (1)
(b) Only (2) & (3)
(c) Only (2)
(d) All (1), (2) & (3)
(e) Only (2) & (1)
Ans: (b) Only (2) & (3)
Q452. Which of the following is known as Plastic money?
(1) Demand Draft
(2) Credit Card
(3) Debit Card

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Both (2) & (3)
(e) All (1), (2) & (3)
Ans: (d) Both (2) & (3)
Q453. Which of the following schemes is launched specifically for helping senior citizens to avail loan by mortgage of their residential property?
(a) English Mortgage Scheme
(b) Senior Capital Loan Scheme
(c) Reverse Mortgage Loan Scheme
(d) Senior Citizen Personal Loan Scheme
(e) None of the above
Ans: (c) Reverse Mortgage Loan Scheme
Q454. Gross Domestic Product (GDP) is defined as the value of all
(a) goods produced in an economy in a year
(b) goods and services in an economy in a year
(c) final goods produced in economy in a year
(d) final goods and services produced in an economy in a year
(e) None of the above
Ans: (d) final goods and services produced in an economy in a year
Q455. Global Economic Prospects (GEP) report revised down the economic growth forecast for developing world in 2014 from 5.3 percent to
(a) 4.5 percent
(b) 4.8 percent
(c) 5 percent
(d) 4.4 percent
(e) 4.9 percent
Ans: (b) 4.8 percent
Q456. Exim Bank extends facility of
(a) rediscounting of foreign bills of commercial banks
(b) advisory services to the exporters
(c) research and market surveys
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q457. We often see the names of two personalities in newspapers/magazines/electronic media. These names are Dr. C Rangarajan and Dr Bimal Jalan. In their lives, one thing in common. That is
(a) Both are the chief economic advisors to Prime Minister of India
(b) Both are Members of Parliament
(c) Both are former Governors of RB I
(d) Both were Finance Ministers of India
(e) There is nothing common in both.
Ans: (c) Both are former Governors of RB I.
Q458. The bank rate is
(a) free to fluctuate according to the forces of demand and supply
(b) set by the RBI
(c) set by the RBI is directed by the Union Ministry of Finance
(d) set by the RBI as adviced by the Indian Banks Association
(e) set by the Government of India on the recommendation of the Planning Commission
Ans: (b) set by the RBI
Q459. In India, the system of decimal coinage was introduced on
(a) 15th August, 1947
(b) 26th January, 1950
(c) 1st April, 1957
(d) All of the above
(e) None of the above
Ans: (c) 1st April, 1957
Q460. On the recommendations of which of the following committees Regional Rural Banks (RRB) were established?
(a) Tarpore Committee
(b) Narasimham Committee
(c) Karmakar Committee
(d) Kelker Committee
(e) Jha Committee
Ans: (b) Narasimham Committee
Q461. The Narasimham Committee-I was set-up to suggest some recommendations for improvement in the
(a) efficiency and productivity of the financial institution
(b) banking reform process
(c) export of IT sector
(d) fiscal reform process
(e) None of the above
Ans: (a) efficiency and productivity of the financial institution
Q462. As we have noticed, banks these days are giving more emphasis on ‘Branchless Banking’. What does this really mean?
I. Banks will not have many branches as used to be in the good old days. Instead, the number of branches will be restricted and will conduct only a specified” core business.
II. Banks will launch/operate many delivery channels like ATMs, Mobile Banking/Internet Banking, etc, so that people are not required to visit a branch for their usual banking needs.
III. This means banks will issue only debit or credit cards for all types of day-today financial transactions. Cheques/ cash payments will not be allowed.
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) I and II
(d) II and III
(e) All of these
Ans:
(e)
All of these
Q463. The rate of interest banks charge its main/ major and prime customers is popularly called as
(a) Risk Premium
(b) Prime Lending Rate
(c) Repo Rate
(d) Reverse Repo Rate
(e) Cost of Fund
Ans: (b) Prime Lending Rate
Q464. Fiscal deficit is
(a) total income less government borrowing
(b) total payments less total receipts
(c) total payments less capital receipts total expenditure less
(d) total receipts excluding borrowing
(e) None of the above
Ans: (d) total receipts excluding borrowing
Q465. Who is the chairperson of State Bank Of India?
(a) Arundhati Bhattacharya
(b) Naina Lal Kidwai
(c) Chanda Kochar
(d) Shikha Sharma
(e) None of these
Ans: (a) Arundhati Bhattacharya
Q466. Which one of the following banks can be included in the Scheduled Commercial Banking System of India?
(a) Regional Rural Banks
(b) Private Sector Banks
(c) Foreign Banks in India
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q467. The Reserve Bank of India has asked all the banks to install “Note Sorting Machines” in the branches. How will this help banks and the general public?
(1) The machines will check for counterfeit notes and drop these from circulation
(2) This will help banks to count the notes quickly and accurately
(2) This will help in sorting out soiled notes so that they are not reissued by the banks

(a) Only (2)
(b) Only (1)
(c) Only (3)
(d) Only (1) & (2)
(e) None of these
Ans: (a) Only (2)
Q468. Which of the following is/are known as banker’s bank?
(a) SBI
(b) NABARD
(c) RBI
(d) All of these
(e) None of these
Ans: (c) RBI
Q469. Which of the following is not a negotiable instrument?
(a) Cheque
(b) Pay order
(c) Bill of Exchange
(d) Warehouse receipt
(e) All are negotiable instruments
Ans:
(e)
All are negotiable instruments
Q470. Micro credit or micro finance is a novel approach to banking with the poor. In this approach, bank credit is extended to the poor through
(a) Self Help Groups
(b) Anganwadi
(c) Cooperative Credit Societies
(d) RBI
(e) None of these
Ans: (c) Cooperative Credit Societies
Q471. SHG Bank Linkage Programme, initially launched by
(a) RBI
(b) NABARD
(c) SBI
(d) RRBs
(e) Finance Ministry
Ans: (b) NABARD
Q472. The investments done by “those financial entities which were launched or incorporated in a foreign country but are investing in an indian venture in India” are generally known as
(a) Patent Money
(b) Private Equity
(c) Foreign Institutional Investment
(d) Current Account Money
(e) None of these
Ans: (c) Foreign Institutional Investment
Q473. SMERA is an SME Rating Agency in India meant for
(a) rating on credit worthiness of MSME
(b) rating on quality management
(c) rating on training system
(d) rating on technology usage in (the organisation)
(e) None of the above
Ans: (a) rating on credit worthiness of MSME
Q474. Insurance service provided by various banks is commonly known as…
(a) Investment Banking
(b) Portfolio Management
(c) Merchant Banking
(d) Bancassurance
(e) Micro Finance
Ans: (d) Bancassurance
Q475. India’s economic freedom score in 2014 stands at 5 5.7 and on the basis of it, India has been placed at…rank in the list of Economic Freedom Index 201 4
(a) 118th
(b) 119th
(c) 120th
(d) 121th
(e) None of these
Ans: (c) 120th
Q476. The paid-up capital of non-scheduled bank is less than
(a) Rs. 5 lakh
(b) Rs. 10 lakh
(c) Rs. 12 lakh
(d) Rs. 15 lakh
(e) None of these
Ans: (a)Rs. 5 lakh
Q477. The monetary authority in India, viz Reserve Bank of India, is bound to maintain a reserve against the notes issued, whatever may be the amount. This system is called as
(a) Minimum Reserve System
(b) Proportional Reserve System
(c) Maximum Fiduciary Issue System
(d) Simple Deposit System
(e) None of these
Ans: (b) Proportional Reserve System
Q478. Headquarters of Reserve Bank of India is in
(a) New Delhi
(b) Mumbai
(c) Kolkata
(d) Chennai
(e) Hyderabad
Ans: (b) Mumbai
Q479. Banks, today, in addition to normal banking services, offer which of the following services?
(a) Internet Banking
(b) Depository Services
(c) Financial Counselling Services
(d) Only A and B
(e)All
Ans:
(e)All
Q480. The World Bank sanctioned Rs. 18,000 crores to which of the following states for its Poverty Alleviation Programme?
(a) Karnataka
(b) Gujarat
(c) Maharashtra
(d) Uttar Pradesh
(e) None of these
Ans: (d) Uttar Pradesh
Q481. As per the decision taken by the Govt of India, all the Public Sector Banks (PSBs) will be recapitalised over the next two years so that they can maintain a capital Adequacy Ratio (CAR) of…………..
(a) 9%
(b) 12%
(c) 11%
(d) 22%
(e) None of these
Ans: (a) 9%
Q482. The Govt of India recently provided an amount of Rs.65,300 cr to about 3.6 cr farmers in India. What was the purpose of the distribution of this much amount to the farmers?
(a) To enable them to purchase tractors and other hitech agricultural machines
(b) This was given to them as a debt waiver and relief package
(c) To provide them fertilisers and advanced high- yielding seeds for the next harvesting season
(d) To help them avail Internet services and update their knowledge about the farming techniques and adopt new methods of the same
(e) None of these
Ans: (b) This was given to them as a debt waiver and relief package.
Q483. Basel -II norms are associated with which of the following aspects of the banking industry?
(a) Risk management
(b) Manpower planning
(c) Retirement benefits for the employees
(d) Corporate governance
(e) None of these
Ans: (a) Risk management
Q484. “Beti Bachao, Beti Padhao Yojana” a Scheme for women safety recently passed in Union Budget 2014-1 5. How much money has been allotted for this scheme?
(a) Rs. 500 Crore
(b) Rs. 100 Crore
(c) Rs. 150 Crore
(d) Rs. 50 Crore
(e) Rs. 1000 Crore
Ans: (b)Rs. 100 Crore
Q485. Consider the following statements:
1. Regional Rural Banks grant direct loans and advances to marginal farmers and rural artisans.
2. NABARD is responsible for laying down policies and to oversee the operations of the RRBs. 3. RRB is not responsible for laying down policies. Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(e) None of these
Ans: (c) Both 1 and 2
Q486. How many banks were in second phase of nationalisation?
(a) 4
(b) 5
(c) 6
(d) 7
(e) 9
Ans:
(e)
9
Q487. Which of the following are the scheduled banks?
(a) The Fuji Bank Limited
(b) IDBI Bank Limited
(c) Centurian Bank of Punjab Limited
(d) All of the above
(e) None of the above
Ans: (b) IDBI Bank Limited
Q488. Which of the following is not an apex institution?
(a) SBI
(b) SIDBI
(c) NABARD
(d) State Cooperative bank
(e) None of these
Ans: (a) SBI
Q489. The Reserve Bank of India had diverted its stake in State Bank of India to
(a) IDBI Bank
(b) LIC
(c) ICICI Bank
(d) Government of India
(e) None of these
Ans: (d) Government of India
Q490. Under what circumstances, can the bank close a partnership account?
(a) Death of partner
(b) Retirement of a partner
(c) Insolvency of a partner
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q491. Amongst the currency quotes USD/JPY, USD/Euro and USD/CAD, which one of the following is referred as the base currency for quotes?
(a) USD
(b) JPY
(c) Euro
(d) CAD
(e) None of these
Ans: (a) USD
Q492. A lot of Banks in India these days are offering M-Banking Facility to their customers. What is the full form of Rs. ‘M’ in ‘M-Banking’?
(a) Money
(b) Marginal
(c) Message
(d) Mutual Fund
(e) Mobile Phone
Ans:
(e)
Mobile Phone
Q493. Which of the following is a retail banking product?
(a) Home loans
(b) Working capital finance
(c) Corporate term loans
(d) Infrastructure financing
(e) Export credit
Ans: (a) Home loans
Q494. Per capita income is obtained by dividing National Income by
(a) total population of the country
(b) total working population
(c) area of the country
(d) volume of the capital used
(e) None of the above
Ans: (a) total population of the country
Q495. Name the bank that purchased the HSBC bank’s Swiss private banking assets?
(a) Six SIS AG
(b) Zurich Cantonal Bank
(c) LGT Bank
(d) WIR Bank
(e) None of these
Ans: (c) LGT Bank
Q496. The branding line of Bank of Baroda is
(a) International Bank of India
(b) India’s International Bank
(c) India’s Multinational Bank
(d) World’s Local Bank
(e) None of the above
Ans: (b) India’s International Bank
Q497. Which of the following organisations is known as the market regulator in India?
(a) IBA
(b) SEBI
(c) AMFI
(d) NSDL
(e) None of these
Ans: (b) SEBI
Q498. A customer wishes to purchase some US dollars in India. He/she should go to
(a) Public Debt Division of the RBI only
(b) American Express Bank Only
(c) RBI or any branch of a Bank which is authorised for such business
(d) Ministry of Foreign Affairs
(e) None of the above
Ans: (c) RBI or any branch of a Bank which is authorised for such business
Q499. Which of the following is the sale authority for issue of currency in India?
(a) Government of India
(b) Reserve Bank of India
(c) Controller of Currency
(d) All of the above
(e) None of the above
Ans: (b) Reserve Bank of India
Q500. At present, the formula for subscription to RRBs capital has been fixed at
(a) Central Government 50%, State Government 35% and Sponsor Bank 15%
(b) Central Government 60%, State Government 20% and Sponsor Bank 20%
(c) Central Government 30%, State Government 30% and Sponsor Bank 40%
(d) Central Government 35%, State Government 35% and Sponsor Bank 30%
(e) Central Government 50%, State Government 25% and Sponsor Bank 25%
Ans: (b) Central Government 60%, State Government 20% and Sponsor Bank 20%

Financial Awareness Section 2.

Q101. As per guidelines of Reserve Bank of India, a new private sector bank
(a) shall be subject to prudential norms in regard to income recognition, asset classification and provisioning, capital adequacy, etc
(b) shall have to observe priority sector lending targets as applicable to other domestic banks
(c) will be required to open rural and semiurban branches
(d) All of these
(e) None of these
Ans: (d) All of these
Q102. Which of the following is not a tax/duty levied by the Government of India?
(a) Income Tax
(b) Education Cess
(c) Service Tax
(d) Customs Duty
(e) Toll Tax
Ans:
(e)
Toll Tax
Q103. Reserve Bank of India (RBI) on 15 January 2014 included two countries in the sensitive list under FEMA Act, 200 0. The countries in question are
(a) Iran and China
(b) Hong Kong and Macau
(c) Syria and Sudan
(d) Israel and Libya
(e) None of these
Ans: (b) Hong Kong and Macau
Q104. 11 Which of the following is a correct statement?
(a) Normally no interest is paid on current deposit accounts
(b) Interest is paid on current accounts at the same rate as term deposit accounts
(c) The rate of interest on current account and savings account are the same
(d) No interest is paid on any deposit by the bank
(e) Savings deposits are the same as current deposits.
Ans: (a) Normally no interest is paid on current deposit accounts.
Q105. What is the Statutory Liquidity Ratio (SLR) at present?
(a) 14%
(b) 18%
(c) 20%
(d) 24%
(e) None of these
Ans: (d) 24%
Q106. As per the new guidelines issued by SEBI, companies are required to list shares within how many days of the closure of the Initial Public Offers (IPOs)?
(a) 12 days
(b) 15 days
(c) 21 days
(d) 30 days
(e) 25 days
Ans: (a) 12 days
Q107. Which one of the following methods is currently used in India to issue note?
(a) Fixed Fiduciary System
(b) Maximum Fiduciary System
(c) Proportional Reserve System
(d) Percentage Reserve System
(e) Minimum Reserve System
Ans:
(e)
Minimum Reserve System
Q108. RRBs are owned by
(a) Central Government
(b) State Government
(c) Sponsor Bank
(d) All of the above
(e) None of the above
Ans: (b) State Government
Q109. The working and operations of NBFCs are regulated by
(a) SEBI
(b) RBI
(c) Finance Ministry, GoI
(d) IRDA
(e) None of the above
Ans: (b) RBI
Q110. Banks and other institutions have issued debt and credit cards, the purpose of both are
(a) the same, to make paperless payments
(b) different, since in credit card, the account is credited with the amount while in debit card the account is debited
(c) the same, there is risk weight-age of 125% in both the cards
(d) different, since in debit cards interest for delayed period is charged while in credit cards no such interest is charged by banks
(e) None of the above
Ans: (a) the same, to make paperless payments
Q111. Expand the term BCBS
(a) Bank’s Committee on Banking Supervision
(b) Basel Committee on Banking Supervision
(c) Bank’s Commission on Banking Supervision
(d) Basel Commission on Banking Supervision
(e) None of these
Ans: (d) Basel Commission on Banking Supervision
Q112. Inflation is measured in India on the basis of which index?
(a) Consumer price index
(b) Wholesale price index
(c) Retail price index
(d) Market forces
(e) None of these
Ans: (b) Wholesale price index
Q113. The Purchasing Managers’ Index (PMI) is a venture of ___?
(a) HDFC
(b) HSBC
(c) ICICI
(d) EXIM Bank of India
(e) None of these
Ans: (b) HSBC
Q114. Which one of the following countries is the first borrower of fund from the International Monetary Fund?
(a) United States
(b) France
(c) Spain
(d) India
(e) Sri Lanka
Ans: (b) France
Q115. Who amongst the following was the Head of the committee which gave its recommendations on the modalities for Capital Account Convertibility?
(a) Dr. Rakesh Mohan
(b) Dr. C Rangarajan
(c) S.S. Tarapore
(d) K.J. Udeshi
(e) None of these
Ans: (c) S.S. Tarapore
Q116. The Monetary and Credit Policy of India is the responsibility of which of the following?
(a) Planning Commission
(b) Finance Ministry
(c) RBI
(d) National Advisory Council
(e) None of these
Ans: (c) RBI
Q117. Which of the following is the abbreviated name of the new Act which deals with money laundering?
(a) AILTA
(b) PERDA
(c) TERLS
(d) SALT
(e) PMLA
Ans:
(e)
PMLA
Q118. Which of the following is true about Cooperative Banks?
(a) They are established under the Cooperative Societies Act
(b) They have profit as their main motive
(c) All are scheduled banks
(d) All of the above
(e) None of the above
Ans: (a) They are established under the Cooperative Societies Act
Q119. Which of the following is/are the functions of foreign 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 using the codes given below:

(a) I and II
(b) II and III
(c) III and IV
(d) I, II and III
(e)
(d) All of these
Ans:
(e)

(d) All of these
Q120. The foreign exchange rate is dependent on which of the following?
(a) Government policies
(b) Monetary policy directives
(c) Demand and supply forces
(d) Foreign exchange reserves
(e) None of these
Ans: (c) Demand and supply forces
Q121. Net balance maintained in current account by co-operative banks with………. are not treated as cash for the purpose of CRR/ SLR
(a) State Bank of India
(b) State Bank of Hyderabad
(c) IDBI Bank Limited
(d) Canara Bank
(e) All of these
Ans: (c) IDBI Bank Limited
Q122. Indian Railways during August 2014 launched a contact-less smart card enabling passengers to pay for reserved as well as unreserved travelling train tickets as part of a pilot project. What is the name of this smart card with lifetime validity?
(a) Go-India
(b) Go-Bharat
(c) Go-Indian
(d) Go-Railway
(e) None of these
Ans: (a) Go-India
Q123. When the RBI wants to inject liquidity into economy, it may adopt the following:
(1) Buy the government securities from the banks
(2) Enter into reverse repo operations
(3) Raise cash Reserve Ratio
(4) Reduce SLR.
Select the correct answer using the codes given below:

(a) 1 only
(b) 1 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4
(e) None of these
Ans: (b) 1 and 4 only
Q124. Who amongst the following is the Chairman of the 13th Finance Commission?
(a) Bimal Jalan
(b) Y V Reddy
(c) C Rangarajan
(d) Vijay Kelkar
(e) None of these
Ans: (d) Vijay Kelkar
Q125. How does a bank establish the identity of a customer?
(a) By getting introduction of an existing customer
(b) By following KYC norms
(c) By taking AADHAR card copy
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q126. SEBI is a/an
(a) advisory body
(b) statutory body
(c) constitutional body
(d) non-statutory body
(e) registered as a society
Ans: (b) statutory body
Q127. RBI generally reviews the Monetary Policy after every
(a) 3 months
(b) 6 months
(c) 9 months
(d) 10 months
(e) None of the above
Ans: (a) 3 months
Q128. 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 mortgage.
Select the correct answer using the codes given below:

(a) I and III
(b) I, III and IV
(c) I, II, III and IV
(d) I and II
(e) I, II and III
Ans: (c) I, II, III and IV
Q129. Which of the following statements about the NABARD is/are TRUE?
(1) NABARD has a dual role to play as it is an apex body and a refinance institution
(2) NABARD services as a refinance institution for all kinds of production and investment credit to agriculture and cottage and village industries
(3) NABARD accepts short-term deposits from the public like any other bank to improve its capital base

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (1) & (2)
(e) All (1), (2) & (3)
Ans: (d) Only (1) & (2)
Q130. Which of the following is true about RBI’s decision regarding sick micro and small enterprises?
(a) These guide lines made on recommendations of the working group chaired by Deputy Governor K. C. Chakrabarty
(b) RBI has suggested that an MSE is considered ‘sick’ when: any of the borrowed amount of the enterprise remains a non-performing asset (NPA) for three months or more
(c) RBI also suggested if there is erosion in the net worth due to accumulated losses to the extent of 50 percent of its net worth during the previous accounting year
(d) The stipulation that the unit should have been in commercial production for at least two years has been removed
(e) All the above true
Ans: (b) RBI has suggested that an MSE is considered ‘sick’ when: any of the borrowed amount of the enterprise remains a non-performing asset (NPA) for three months or more
Q131. ‘Sub prime lending’ is a term applied to the loans made to
(a) these borrowers who do not have a good credit history
(b) those who wish to take loan against the mortgage of tangible assets
(c) those who have a good credit history and are known to bank since 10 years
(d) Both A and B
(e)None
Ans: (a) these borrowers who do not have a good credit history
Q132. Consider the following statements:
I. The first attempt to calculate National Income of India was made by Dadabhai Naoroj i.
II. The first scientific method to calculate national income of India was made by Professor VKRV Rao. Which of the statements given above is/are correct?

(a) Only I
(b) Only II
(c) Both I and II
(d) Neither I nor II
(e) Either I or II
Ans: (c) Both I and II
Q133. How many banks were fined by the Reserve Bank of India (RBI) on 25 July 2014 for violating central bank rules in the case of Deccan Chronicle Holdings?
(a) Ten
(b) Eleven
(c) Twelve
(d) Thirteen
(e) None of these
Ans: (c) Twelve
Q134. Which is not a source of Agriculture finance in India?
(a) Co-operative societies
(b) Commercial Banks
(c) Regional Rural Banks
(d) Central Rural Bank
(e) None of these
Ans: (d) Central Rural Bank
Q135. How many banks were nationalised in the second phase in 1980?
(a) 5
(b) 6
(c) 7
(d) 4
(e) 1
Ans: (b) 6
Q136. A current account in a bank means
(a) in which balances are kept high
(b) interest is not paid on the balance in the account
(c) in which transactions should take place daily
(d) availing credit facilities
(e) None of these
Ans: (b) interest is not paid on the balance in the account
Q137. Which of the following are decided by the Reserve Bank of India?
I. Deposit rates
II. Base Rate
III. Prime Lending Rate
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) II and III
(e) None of these
Ans: (a) Only I
Q138. If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to
(a) increase it
(b) decrease it
(c) no impact
(d) constant
(e) None of these
Ans: (a) increase it
Q139. Which of the following measures have been taken to enlarge resources available to RRBs?
(a) Lines of credit at a reasonable rate of interest from sponsor banks
(b) Access to inter-RRB term money/ borrowings
(c) Access to repo/CBLO markets
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q140. A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as __________
(a) CHAPS
(b) SWIFT
(c) NEFT
(d) SFMS
(e) CHIPS
Ans: (b) SWIFT
Q141. A centralised database with online connectivity to branches, Internet as well as ATM network which has been adopted by almost all major banks of our country is known as?
(a) Investment banking
(b) Core banking
(c) Mobile banking
(d) National banking
(e) Specialised banking
Ans: (b) Core banking
Q142. Initial repayment holiday given to a borrower for repayment of loan is called is
(a) subvention
(b) moratorium
(c) re-schedulement
(d) amortisation
(e) EMI
Ans: (b) moratorium
Q143. Fiscal deficit is
(a) total income less government borrowing
(b) total payments less total receipts
(c) total payments less capital receipts
(d) total expenditure less total receipts excluding borrowing
(e) None of the above
Ans: (d) total expenditure less total receipts excluding borrowing
Q144. Reserve Bank of India on 20 January 2014 constituted an Expert Committee to Review Governance of Bank Boards in India. The expert committee will be chaired by?
(a) Urjit R. Patel
(b) H.R. Khan
(c) K.C. Chakrabarty
(d) P.J. Nayak
(e) None of these
Ans: (d) P.J. Nayak
Q145. The usual deposit accounts of banks are
(a) Current accounts, electricity accounts and insurance premium accounts
(b) Current accounts, post office savings bank accounts and term deposit accounts
(c) Loan accounts, savings bank accounts and term deposit accounts
(d) Current accounts, savings bank accounts and term deposit accounts
(e) Current bill accounts and term deposit accounts
Ans: (d) Current accounts, savings bank accounts and term deposit accounts
Q146. An agreement, which in fact is a contract, between the RBI and Banks for the sale and repurchase of Govt securities and shortterm treasury bills at a future date and for which the RBI indicates “the interest rate”, is generally known as
(a) Repo Rate
(b) Bank Rate
(c) Reverse Repo Rate
(d) Prime Lending Rate
(e) None of these
Ans: (a) Repo Rate
Q147. Which of the following key rate has not been altered by RBI since 2003?
(a) Bank rate
(b) Statutory liquidity ratio
(c) Cash reserve ratio
(d) Repo rate
(e) All of the above
Ans: (a) Bank rate
Q148. On 25th September, 1975, rupee was delinked from pound sterling and was linked to
(a) US dollar
(b) gold
(c) basket of currencies
(d) All of these
(e) None of these
Ans: (c) basket of currencies
Q149. The number of directors on the Boards of RRBs has been raised to
(a) 14
(b) 15
(c) 16
(d) 17
(e) 18
Ans: (d) 17
Q150. The Narasimham 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 forces such 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 funds only in short-term and risk free as.
Select the correct answer using the codes given below:

(a) I, II and V
(b) I, III, IV and V
(c) I, II, III and V
(d) II, III, IV and V
(e) I, II, III and IV
Ans:
(e)
I, II, III and IV
Q151. When we talk of smart money what are we referring to?
(a) Foreign currency
(b) Internet banking
(c) Credit cards
(d) Treasury bills
(e) None of the above
Ans: (c) Credit cards
Q152. What do you understand by ‘Para Banking’ services?
(a) Eligible financial services rendered by banks
(b) Utility services provided by banks
(c) Services provided through business correspondents
(d) Services provided to armed force personnel
(e) None of these
Ans: (a) Eligible financial services rendered by banks
Q153. Financial inclusion is meant for?
(a) Less provilged persons
(b) Senior citizens
(c) Micro finance institutions
(d) All of the above
(e) None of the above
Ans: (a) Less provilged persons
Q154. Factors responsible for the widespread popularity of consumer finance in recent years: Providing access to purchasing power to the middle class consumer has been the most significant achievement of this product class. A complainant not satisfied with the decision of the Banking Ombudsman, has the right to appeal to the_______
(a) Governor SBP
(b) AVP of the concerned bank
(c) High Court
(d) Supreme Court
(e) None of these
Ans: (a) Governor SBP
Q155. Which one of the following statements is true regarding IMF?
(a) It is not an agency of UNO
(b) It can grant loan to any country of the world
(c) It can grant loan to State Government of a country
(d) It grants loan only to member nations
(e) All of the above
Ans: (d) It grants loan only to member nations
Q156. Which of the following organisations/ agencies has established a fund known as Investor Protection Fund?
(a) RBI
(b) SIDBI
(c) Bombay Stock Exchange
(d) Ministry of Finance
(e) Ministry of Commerce and Industry
Ans: (a) RBI
Q157. Which of the following statements is correct?
(a) RBI is just like any ordinary commercial bank
(b) RBI is responsible for the overall Monetary Policy
(c) The Fiscal Policy of India is approved by RBI
(d) RBI has Deputy Chairman Planning Commission on its board
(e) None of these
Ans: (b) RBI is responsible for the overall Monetary Policy
Q158. A bank normally does not have to deal with an issue related to
(a) payments and settlement systems
(b) contractual rights of creditors
(c) intellectual property rights
(d) cases of insolvency
(e) coordination between regulators active in banking/ financial sectors
Ans: (c) intellectual property rights
Q159. National Federation of Sate Co-operative Banks
(a) provides a common forum to the member banks
(b) promotes and protects the interests of the member banks
(c) co-ordinate and liaison with Government of India and RBI
(d) provide research and consultancy inputs to the member banks
(e) All of the above
Ans:
(e)
All of the above
Q160. Which of the following is introduced by banks to increase financial inclusion?
(a) Stimulus package
(b) Internet banking
(c) Business correspondent
(d) Corporate banking
(e) None of the above
Ans: (c) Business correspondent
Q161. Which of the following is a nostro account?
(a) Account of a foreign bank in India
(b) Account of an Indian bank within another bank overseas
(c) Account of a non-resident Indian
(d) All of the above
(e) None of the above
Ans: (b) Account of an Indian bank within another bank overseas
Q162. Basel I, which was issued in 1988, focuses on the
(a) Capitaladequacyoffinancialinstitutions
(b) improvement of the banking sector’s ability to deal with financial and economic stress
(c) technology upgradation
(d) training of banking staff
(e) professionalism in banking
Ans: (a) Capital adequacy of financial institutions
Q163. What is the name of the proposed airline of Tata-SIA Airlines Limited (TSAL), a jointventure between Tata Group and Singapore International Airlines (SI)
(a) Vistara
(b) Margaret
(c) Tata-SIA
(d) Legard
(e) None of these
Ans: (a) Vistara
Q164. Which of the following statements is/are correct in regard to ‘micro-finance’?
(1) Micro-credit extended by banks to individual is reckoned as a part of their priority sector lending
(2) RBI has prescribed a particular model for banks to provide micro-finance
(3) RBI has prescribed a particular model for banks to provide macro-finance. Choose the correct answer using the codes given below:

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) only 3
(e) None of these
Ans: (a) 1 only
Q165. Who is Brand Endorsing Personality of Bank of Baroda?
(a) Juhi Chawla
(b) Kiran Bedi
(c) Amitabh Bachchan
(d) Kapil Dev
(e) None of these
Ans:
(e)
None of these
Q166. While discussing investments, there is mention of short-term government security. What is this type of investment known as?
(a) Debenture
(b) Mutual fund
(c) Treasury bill
(d) Share
(e) All of these
Ans: (c) Treasury bill
Q167. Mutual funds are regulated by
(a) Association of Mutual Funds of India (AMFI)
(b) Securities and Exchange Board of India (SEBI)
(c) Reserve Bank of India
(d) IRDA
(e) None of the above
Ans: (b) Securities and Exchange Board of India (SEBI)
Q168. Which of the following rates is decided by the market conditions and not by RBI?
(a) Bank rate
(b) SLR
(c) CRR
(d) Inflation rate
(e) None of these
Ans: (d) Inflation rate
Q169. Many times, we hear about the ‘Banking Ombudsman’. What is/are the major roles of same?
I. Banking Ombudsman is a quasi-judicial authority having powers to summon, the banks and the customers both in case of dispute.
II. The Banking Ombudsman are appointed by the President of India and are retired judges of the High or Supreme Courts.
III. The decisions/judgements given by the Banking Ombudsman cannot be taken to any court of justice as their decisions are last in case of bank related problems disputes.
Select the correct answer using the codes given below

(a) Only I
(b) Only II
(c) Only III
(d) All of these
(e) None of these
Ans: (a) Only I
Q170. The Head Office of the National Bank for Agriculture & Rural Development (NABARD) is located in
(a) New Delhi
(b) Hyderabad
(c) Mumbai
(d) Lucknow
(e) None of these
Ans: (c) Mumbai
Q171. Which among the following is called as non performing assets?
(a) Assets that can exchange income;
(b) Assets that eases to earn interest income
(c) assets that have not been commented upon by the auditors
(d) all the above
(e) none of the above
Ans: (b) Assets that eases to earn interest income
Q172. In banking parlance, ‘Sub-prime’ refers to
(a) landing by banks at rates below PLR
(b) funds raised by banks at sub-libor rates
(c) group of banks which are not rated as prime banks as per bankers almanac
(d) lendingdone by banks/FIs to customers not meeting with normally required credit appraisal standards
(e) None of the above
Ans: (d) lendingdone by banks/FIs to customers not meeting with normally required credit appraisal standards
Q173. Consider the following statements:
I. GDP is a better measure of National Income than GNP.
II. GNP is always higher than GDP. Which of the statements given above is/are correct?

(a) Only I
(b) Only II
(c) Both I and II
(d) Neither I nor II
(e) Either I or II
Ans: (d) Neither I nor II
Q174. S.K. Jain, who was arrested by the CBI on charges of allegedly accepting a bribe of Rs. 50 lakh to enhance the credit limit of some companies, was the Chairman and Managing Director (CMD) of which publicsector bank?
(a) Syndicate Bank
(b) Indian Bank
(c) Oriental Bank of Commerce
(d) UCO Bank
(e) None of these
Ans: (a) Syndicate Bank
Q175. In India ‘Report on Currency and Finance’ is the annual publication of
(a) SEBI
(b) RBI
(c) Finance Commission
(d) Finance Ministry
(e) None of these
Ans: (b) RBI
Q176. Axis Bank is the changed name of
(a) IDBI
(b) ICICI
(c) UTI
(d) UTO
(e) RBI
Ans: (c) UTI
Q177. Which of the following methods is being adopted by Banks for calculating and applying interest on Savings Bank accounts?
(a) On monthly products based on minimum balance between 10th and last working day
(b) Daily balance is counted and interest is paid accordingly
(c) On average quarterly balance
(d) On average half yearly balance
(e) None of the above.
Ans: (b) Daily balance is counted and interest is paid accordingly
Q178. RBI has recently deregulated the rates of interest to be provided by various banks to their depositors/customers with effect from 25th October, on their accounts
(a) Time deposit
(b) Saving bank
(c) Loan
(d) Fixed deposit
(e) Current
Ans: (b) Saving bank
Q179. Which of the following banks has opened the country’s first “Cash Factory” in Lucknow which will issue currency notes to all its branches and ATM in the area? (Andhara Bank 2009)
(a) Bank of India
(b) Bank of Baroda
(c) State Bank of India
(d) Union Bank of India
(e) None of these
Ans: (c) State Bank of India
Q180. Which of the following statements about Regional Rural Banks (RRBs) are correct?
(a) Sponsor banks travellers cheques can be issued by RRBs
(b) RRBs can enter into arrangements with the sponsor banks for providing remittance facilities to its customers
(c) Where RRBs can afford the investment, they can install lockers also
(d) Both A and B
(e) All of the above
Ans:
(e)
All of the above
Q181. Prof. Muhammad Yunus, the receipient of the Nobel Peace Prize 2006 is the exponent of which of the following concepts in the field of banking?
(a) Core Banking
(b) Micro Credit
(c) Retail Banking
(d) Real Time Gross Settlement
(e) Internet Banking
Ans: (b) Micro Credit
Q182. In which of the following fund transfer mechanisms, can funds be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
(a) RTGS
(b) NEFT
(c) TT
(d) EFT
(e) MT
Ans: (a) RTGS
Q183. A loan granted for short-term crops will be treated as NPA, if the instalment of principal or interest thereon or both remain overdue for….. crop season (s)
(a) one
(b) two
(c) three
(d) four
(e) None of these
Ans: (b) two
Q184. The amount of which of the following reflects the overall budgetary position of the Government of India at a given time?
(a) Revenue deficit
(b) Total amount of income tax collected
(c) Capital deficit
(d) Fiscal deficit
(e) None of these
Ans: (d) Fiscal deficit
Q185. Recently, an Expert Panel on Monetary Framework set up by the RBI recommended to strengthen and revise the current monetary policy framework. The Expert Panel was headed by?
(a) Raghuram G Rajan
(b) Peter J. Montiel
(c) Rupa Nitsure
(d) Urjit Patel
(e) None of these
Ans: (d) Urjit Patel
Q186. Fixed deposits and recurring deposits are
(a) repayable after an agreed period
(b) repayable on demand
(c) not repayable
(d) repayable after death of depositors
(e) repayable on demand or after an agreed period as per bank,s choice.
Ans: (a) repayable after an agreed period.
Q187. As per the reports in various newspapers many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organisations/agencies issue the licence for the same?
(a) Securities & Exchange Board of India (SEBI)
(b) Indian Institute of Banking & Finance (IIBF)
(c) Reserve Bank of India (RBI)
(d) Registrar of Companies
(e) None of these
Ans: (c) Reserve Bank of India (RBI)
Q188. Commercial bills market is a part of
(a) organised money market
(b) unorganised money market
(c) stock market
(d) capital market
(e) None of the above
Ans: (a) organised money market
Q189. The Reserve Bank of India began production of notes in 1938, issuing Rs. 2,51,01,000 notes. Rs. 500 note was re-introduced again in
(a) 1987
(b) 2000
(c) 2003
(d) 2006
(e) 2010
Ans: (a) 1987
Q190. The issued/paid-up capital of a Regional Rural Bank (RRB) should be
(a) Rs. 60 lakh
(b) minimum Rs. 25 lakh and maximum Rs. 100 lakh
(c) Rs. 80 lakh
(d) Rs. 90 lakh
(e) None of the above
Ans: (b) minimum Rs. 25 lakh and maximum Rs. 100 lakh
Q191. An anna was equal to
(a) 4 paise
(b) 16 paise
(c) 50 paise
(d) 100 paise
(e) None of these
Ans: (a) 4 paise
Q192. Which of following is necessary to transfer funds through the RTGS facility?
(a) Beneficiary’s bank account number
(b) The IFSC number of the beneficiary’s bank branch
(c) There is a minimum amount specified for transfer
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q193. Which of the following is/was NOT included in the agenda set for the Banking Reforms in India?
(a) Dismantling of administered interest rates
(b) Measures to strengthen risk management
(c) Promulgation of SARFAESI Act
(d) Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt
(e) Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market
Ans: (d) Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt
Q194. As per reports in the newspapers the Indian Rupee is appreciated these days. What does it really mean?
I. The value of the Rupee has gone up. It is now 110 paise and not 100 paise.
II. The exchange rate of Rupee has gone up.
III. Now we can purchase more in one Rupee. Which was not possible earlier?

(a) Only I
(b) Only II
(c) Only III
(d) Both I and II
(e) None of these
Ans: (b) Only II
Q195. Which of the following constitutes a significant portion of banks’ lending portfolios?
(a) Credit finance
(b) Foreign Exchange
(c) Consumer finance
(d) Money laundering
(e) None of these
Ans: (c) Consumer finance
Q196. Voting rights in the IMF are distributed on the basis of
(a) one country, one vote
(b) proportion to the share of the income of the country in the world income
(c) proportion to contributions given by each country
(d) proportion to quota allotted to countries from time to time
(e) None of the above
Ans: (d) proportion to quota allotted to countries from time to time
Q197. Reverse Repo is a tool used by RBI to
(a) Inject liquidity
(b) Absorb liquidity
(c) Increase the liquidity with banking system
(d) To keep the liquidity at one level
(e) None of these
Ans: (b) Absorb liquidity
Q198. The RBI is not expected to perform the function of
(a) the banker to the government
(b) accepting deposit from commercial banks
(c) accepting deposit from commercial public
(d) issue of currency
(e) None of these
Ans: (c) accepting deposit from commercial public
Q199. Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard?
(1) Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them
(2) Maintaining account books for them for their day-to-day activities so that they are not required to appoint account/ finance personnel on a regular basis
(3) Lending money by way of overdraft, instalment loan, credit or advance for business activities

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (1) & (3)
(e) All of these
Ans: (d) Only (1) & (3)
Q200. The RBI has prescribed that all SGBs should maintain their SLRs in
(a) dated securities notified by RBI
(b) T-bills of Government of India
(c) state development loans
(d) All of the above
(e) None of the above
Ans: (d) All of the above

Financial Awareness Section 1.

Q1. Which of the following is considered an informal method of getting credit/finance?
(a) Internet banking
(b) Branch visits
(c) Going to moneylenders
(d) Telebanking
(e) All of these
Ans: (c) Going to moneylenders
Q2. A money deposited in a bank that cannot be withdrawn for a present fixed period of time is known as a
(a) term deposit
(b) checking account
(c) savings bank deposit
(d) no frills account
(e) current deposit
Ans: (a) term deposit
Q3. Which of the following is the regulator of the credit rating agencies in India?
(a) RBI
(b) SBI
(c) SIDBI
(d) SEBI
(e) None of these
Ans: (d) SEBI
Q4. The Interest rate at which the RBI lends to commercial banks in the short-term to maintain liquidity is known as
(a) interest rate
(b) repo rate
(c) reverse repo rate
(d) bank rate
(e) All of the above
Ans:
(e)
All of the above
Q5. The main function of commercial bank can be segregated into
I. payment system.
II. financial intermediation.
III. financial services.
Select the correct answer using the codes given below

(a) I, II and III
(b) I and III
(c) I and II
(d) II and III
(e) None of these
Ans: (a) I, II and III
Q6. The National Bank for Agriculture and Rural Development (NABARD) was established in the year
(a) 1970
(b) 1982
(c) 1977
(d) 1980
(e) 1975
Ans: (b) 1982
Q7. Banking and financial services all over the world are regulated usually by the Monetary Authority of the land. Who controls this function in India?
(a) Ministry of Finance
(b) SEBI
(c) RBI
(d) IRDA
(e) FEDAI
Ans: (d) IRDA
Q8. As reported in some major financial newspapers, many times it is said that “Other Income” boosts the profit of a bank to a substantial level. What is this other income for a bank?
(1) Commission for selling insurance policies
(2) Fee for providing various services (like ATM/Extra cheque etc)
(3) Interest on advances and loans

(a) Only (1)
(b) Only (2)
(c) Both (1) & (2)
(d) Only (3)
(e) All (1), (2) & (3)
Ans: (c) Both (1) & (2)
Q9. GNP stands for
(a) Gross National Product
(b) Group Net Product
(c) Grand Nuclear Process
(d) Group Network Process
(e) None of the above
Ans: (a) Gross National Product
Q10. What is the objective of the government behind setting up a Minimum Export Price (MEP) for a particular commodity?
(a) To promote import
(b) To promote exports
(c) To check price rise
(d) To help exporters
(e) None of these
Ans: (c) To check price rise
Q11. RBI constituted an expert committee for examining its current monetary policy framework. Who is the chairman of the committee?
(a) Dr. Urjit Patel
(b) H. R. Khan
(c) Dr. Anand Sinha
(d) K. C. Chakrabarty
(e) None of these
Ans: (a) Dr. Urjit Patel
Q12. Which of the following banks has acquired the ‘Centurion Bank of Punjab’?
(a) ICICI Bank
(b) IDBI Bank
(c) HDFC Bank
(d) AXIS Bank
(e) None of these
Ans: (c) HDFC Bank
Q13. An account in which trading of shares in their electronic form is done, is known as
(a) D-mat account
(b) NRI account
(c) NRIO account
(d) Current account
(e) None of these
Ans: (a) D-mat account
Q14. RBI’s open market operation transactions are carried out with a view to regulate
(a) liquidity in the economy
(b) prices of essential commodities conflation
(c) borrowing power of the banks
(d) All of the above
(e) None of the above
Ans:
(e)
None of the above
Q15. Which of the following is the full form of the term SLR as used in the banking sector?
(a) Social Lending Ratio
(b) Statutory Liquidity Ratio
(c) Scheduled Liquidity Rate
(d) Separate Lending Rate
(e) None of these
Ans: (b) Statutory Liquidity Ratio
Q16. By virtue of the amendment carried out by the Regional Rural Bank (Amendment) Act, 1987, the Chairman of a Regional Rural Bank (RRB) is to be appointed by
(a) Central Government
(b) State Government
(c) Sponsor bank in consultation with NABARD
(d) Reserve of Bank of India
(e) None of the above
Ans: (c) Sponsor bank in consultation with NABARD
Q17. Dr Muhammad Yunus is a resident of
(a) India
(b) Pakistan
(c) Bangladesh
(d) USA
(e) UK
Ans: (c) Bangladesh
Q18. NEFT means
(a) National Electronic Funds Transfer system
(b) Negotiated Efficient Fund Transfer System
(c) National Efficient Fund Transfer Solution
(d) Non Effective Fund Transfer System
(e) Negotiated Electronic Foreign Transfer system
Ans: (a) National Electronic Funds Transfer system
Q19. 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
(a) cheque
(b) bankdraft
(c) promissory note
(d) insurance
(e) None of the above
Ans: (c) promissory note
Q20. Union budget is always presented first in
(a) the Lok Sabha
(b) the Rajya Sabha
(c) joint session of the Parliament
(d) meeting of the Union Cabinet
(e) the State Assemblies
Ans: (a) the Lok Sabha
Q21. The Bank of Japan (BOJ) and the Reserve Bank of India (RBI) recently agreed to expand the amount of the Bilateral Swap Agreement (BSA) to
(a) 15 billion dollars
(b) 35 billion dollars
(c) 50 billion dollars
(d) 75 billion dollars
(e) None of these
Ans: (c) 50 billion dollars
Q22. Govt of India has created a special fund called India Micro Finance Equity Fund of Rs. 100 crores. The fund is maintained by
(a) IDBI Bank
(b) RBI
(c) ECGC
(d) SIDBI
(e) NABARD
Ans: (d) SIDBI
Q23. Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates? Policy of
(a) Capital Account Convertibility
(b) Financial Deficit Management
(c) Minimum Support Price
(d) Restrictive Trade practices
(e) None of these
Ans: (a) Capital Account Convertibility
Q24. Many Regional Rural Banks are given licence to open branches in small cities and towns. These licences are given by
(a) Cabinet Committee on Economic Affairs
(b) Reserve Bank of India
(c) NABARD
(d) Indian Banks’ Association
(e) None of the above
Ans: (b) Reserve Bank of India
Q25. The first decimal issues of coins in 1950 in India consisted of
(a) 1, 2 and 5 paise
(b) 1, 2, 5 and 10 paise
(c) 1, 2, 5, 10 and 25 paise
(d) 1, 2, 5, 10, 25 and 50 paise
(e) 1, 2, 5, 10, 25 and 50 paise along with Rs. 1
Ans:
(e)
1, 2, 5, 10, 25 and 50 paise along with Rs. 1
Q26. Which nationalised bank was the first to sponsor a Regional Rural Bank (RRB) in India?
(a) Syndicate Bank
(b) Bank of India
(c) Union Bank of India
(d) Central Bank of India’
(e) None of the above
Ans: (a) Syndicate Bank
Q27. The basic aim of Lead Bank Scheme is that
(a) big banks should try to open offices in each district
(b) there should be stiff competition among the various nationalised banks
(c) individuals banks should adopt particular districts for intensive development
(d) all the banks should make intensive efforts to mobilise deposits
(e) None of the above
Ans: (c) individuals banks should adopt particular districts for intensive development
Q28. Which is the card that looks like any other plastic card or an ATM card with Integrated Circuit (IC chip)?
(a) Member card
(b) Charge card
(c) Credit card
(d) Smart card
(e) None of the above
Ans: (d) Smart card
Q29. Basel-II norms are associated with which of the following aspects of the banking industry?
(a) Risk management
(b) Manpower planning
(c) Retirement benefits for the employees
(d) Corporate Governance
(e) None of these
Ans: (a) Risk management
Q30. Inflation in India is measured on which of the follow indexes/indicators?
(a) Cost of Living Index (COLI)
(b) Consumer Price Index (CPI)
(c) Gross Domestic Product (GDP)
(d) Wholesale Price Index (WPI)
(e) None of these
Ans: (d) Wholesale Price Index (WPI)
Q31. President Pranab Mukherjee on 30 March 2014 cleared the re-promulgation of the SEBI Ordinance Securities Laws (Amendment) Bill 201 3. The ordinance aims to give powers to
1. Securities and Exchanges Board of India (SEBI) to act against Ponzi scheme.
2. The move was to arm the regulator with more stringent powers comes in the wake to curb the illegal involvement of chit fund companies.
3. Parliament passed the Securities Laws (Amendment) Bill 2013 in the Winter session. Consider the above statements and choose the correct option

(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
(e) None of these
Ans: (b) 1 and 2 only
Q32. Which of the following is not a money market instrument?
(a) Treasury Bills
(b) Commercial Paper
(c) Certificate of Deposit
(d) Equity Share
(e) None of these
Ans: (d) Equity Share
Q33. For which of the following reasons RBI has decided to undertake mid-quarter policy reviews?
(1) Bank Rate and Repo Rate
(2) Reverse Repo Rate
(3) CRR and SLR

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (a) Only (1)
Q34. Which of following institutions regulate non-banking financial companies?
(a) RBI
(b) SEBI
(c) IRDA
(d) Finance Ministry
(e) None of these
Ans: (a) RBI
Q35. Which of the following statements is correct about promissory note?
(a) It need not be in writing
(b) An implied promise is enough to constitute a valid promissory note
(c) The promise to pay must be definite and unconditional
(d) The name of the payee need not be mentioned
(e) The payment can be in kind
Ans: (c) The promise to pay must be definite and unconditional
Q36. What was the objective of starting cooperative banking in India?
(a) To act as competitors to commercial banks
(b) To be solely for the agriculture sector
(c) To start self help groups
(d) To replace moneylenders and indigenous bankers
(e) None of the above
Ans: (d) To replace moneylenders and indigenous bankers
Q37. Which of the following is an effort in the direction of financial inclusion?
(a) Internet banking
(b) Anywhere banking
(c) Foreign currency accounts
(d) All of these
(e) None of these
Ans: (c) Foreign currency accounts
Q38. Which one of the following may be the consequence of buying forex in the market by the RBI?
(a) It leads to inflation
(b) It leads to control over inflation
(c) It does not affect inflation
(d) It results into deflation
(e) None of the above
Ans: (d) It results into deflation
Q39. The UTI was established in
(a) 1956
(b) 1964
(c) 1972
(d) 1976
(e) None of these
Ans: (b) 1964
Q40. The Reserve Bank of India (RBI) has recently issued guidelines for asset reconstruction companies (ARCs) to increase their investments in security receipts (SRs) with the objective of strengthening the asset recovery sector. What is the minimum prescribed percentage of funds that ARCs would now have to invest in SRs as directed in this RBI guideline?
(a) 7.5%
(b) 10%
(c) 15%
(d) 18%
(e) None of these
Ans: (c) 15%
Q41. Which of the following activities can lead to financial inclusion in India?
(1) Issuing of general purpose credit cards
(2) Strict know your customer’ (KY
(c) norms
(3) Opening of Bank branches in unbanked rural areas
(4) Opening of no-frills account.
Select the correct answer using the codes given below:

(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 1, 3 and 4 only
(d) 2 and 3 only
(e) None of these
Ans: (c) 1, 3 and 4 only
Q42. Which of the following is NOT a Public Sector Unit/Undertaking/Agency?
(a) ECGC
(b) SEBI
(c) SIDBI
(d) Axis Bank
(e) BHEL
Ans: (d) Axis Bank
Q43. Mahesh and Suresh are friends aged 14 and 15 respectively. They want to open a joint account in your bank. You will
(a) allow them to open a joint account to be operated jointly
(b) allow them to open a joint account with operating instructions either or survivor
(c) allow them to open a joint account with operating instructions former or survivor
(d) allow them to open a joint account with operating instructions any one or survivor
(e) None of these
Ans: (a) allow them to open a joint account to be operated jointly
Q44. Which of the following organisations is known as the market regulator in India?
(a) IBA
(b) SEBI
(c) AMFI
(d) NSDL
(e) None of these
Ans: (b) SEBI
Q45. Reverse repo means
(a) injecting liquidity by the Central Bank of a country through purchase of government securities
(b) absorption of liquidity from the market by sale of government securities
(c) balancing liquidity with a view to enhance economic growth rate
(d) improving the position of availability of the securities in the market
(e) All of the above
Ans: (b) absorption of liquidity from the market by sale of government securities
Q46. Which of the following types of institutions operate in the call money market only as lender?
(a) Commercial banks
(b) Primary dealers
(c) Insurance companies
(d) SBI
(e) None of the above
Ans: (c) Insurance companies
Q47. Which of the following statements is/are TRUE about the activities of the NABARD?
(1) NABARD has the responsibility to inspect RRBs and Cooperative Banks
(2) NABARD maintains Research and Development Fund to promote research in agriculture and rural development
(3) NABARD is a wing of the Planning Commission of India

(a) Only (1)
(b) Only (2)
(c) Both (1) & (2)
(d) Only (3)
(e) All (1), (2) & (3)
Ans: (c) Both (1) & (2)
Q48. Which bank in India has introduced vertical credit cards?
(a) Kotak Bank
(b) Yes Bank
(c) HDFC Bank
(d) ICICI Bank
(e) SBI
Ans: (a) Kotak Bank
Q49. Which of the following correctly describes what sub-prime lending is?
I. Lending to the people with less than ideal credit status.
II. Lending to the people who are high value customers of the banks.
III. Lending to those who are not a regular customer of a bank.
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) All of these
(e) None of these
Ans: (a) Only I
Q50. In India, the National Income is measured on the basis of
(a) flow of goods only
(b) number of employed youth only
(c) volume of tax collected per annum
(d) earning of people working in PSUs and government jobs
(e) All of the above
Ans:
(e)
All of the above
Q51. The Union Govt. recently launched a web portal for enabling government-citizen discussions on several issues. What is the name of this portal which was inaugurated by Prime Minister Narendra Modi?
(a) MyGov
(b) MineGov
(c) MeriGov
(d) MyGovern
(e) None of these
Ans: (a) MyGov
Q52. RBI reduced the Marginal Standing Facility (MSF) Rate to 9% from
(a) 9.5%
(b) 9.3%
(c) 9.8%
(d) 9.9%
(e)None of these
Ans: (a) 9.5%
Q53. What was the deposits criteria of 14 banks nationalised on 19th July, 1969?
(a) Rs. 1000 crore
(b) Rs. 500 crore
(c) Rs. 100 crore
(d) Rs. 50 crore
(e) None of these
Ans: (d)Rs. 50 crore
Q54. A Savings Bank Account opened with a commercial bank with zero balance or very minimal balance is known as
(a) Savings Bank Ordinary account
(b) Student Savings Bank account
(c) No-Frill account
(d) Current account
(e) Call deposit
Ans: (c) No-Frill account
Q55. Which of the following is not a measure adopted by the Government or RBI to control inflation?
(a) Monetary policy
(b) Fiscal policy
(c) Public distribution system
(d) Price control
(e) Financial inclusion
Ans:
(e)
Financial inclusion
Q56. The Reserve Bank of India keeps on changing various ratio/rates frequently. Why is this done?
(1) To keep inflation under control
(2) To ensure that Indian Rupee does not lose its market value
(3) To ensure that Banks do not earn huge profits at the cost of public money

(a) Only 1
(b) Only 2
(c) Only 3
(d) All 1, 2 & 3
(e) None of these
Ans: (d) All 1, 2 & 3
Q57. Which of the following conditions are required to be fulfilled by a Regional Rural Bank (RRB) to be eligible for opening of new branches?
(a) It should not have defaulted in maintenance of SLR and CRR during the last 2 years
(b) It should be making operational profits
(c) Its net worth shouldshow improvement and its net NPA ratio should not exceed 8%
(d) Both A and B
(e) All of the above
Ans:
(e)
All of the above
Q58. Financial inclusion means provision of
(a) financial services, namely, payments, remittances, savings, loans and insurence at affordable cost to persons not yet given the same
(b) ration at affordable cost to persons not yet given the same
(c) house at affordable cost to persons not yet given the same
(d) food at affordable cost to persons not yet given the same
(e) education at affordable cost to persons not yet given the same.
Ans: (a) financial services, namely, payments, remittances, savings, loans and insurence at affordable cost to persons not yet given the same.
Q59. A centralized database with online connectivity to branches, Internet as well as ATM network which has been adopted by almost all major banks of our country is known as
(a) investment banking
(b) core banking
(c) mobile banking
(d) national banking
(e) specialised banking
Ans: (b) core banking
Q60. Which of the following is not considered as negotiable instrument underthe Negotiable Instruments Act, 1881?
(a) Bill of Exchange
(b) Promissory Note
(c) Share Certificate
(d) Cheque Payable to Bearer
(e) Cheque with ‘Not Negotiable’ crossing
Ans: (d) Cheque Payable to Bearer
Q61. As we all know, the Ministry of Finance every year prepares the Union Budget and presents it to the Parliament. Which of the following is/are the elements of the Union Budget?
I. Estimates of revenue and capital receipts.
II. Ways and means to raise the revenue.
III. Estimates of expenditure.
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) All of these
(e) None of these
Ans: (d) All of these
Q62. National Bank for Agriculture and Rural Development (NABARD) recently reduced the refinance rates for the banks and other lending agencies by 0.20 percent. The NABARD was established on the recommendation of which committee?
(a) Narendran Commission
(b) Mukherjee Commission
(c) Justice Shah Commission
(d) B. Sivaraman Committee
(e) None of these
Ans: (d) B. Sivaraman Committee
Q63. Accounts are allowed to be operated by cheques in respect of
(a) Both savings bank accounts and fixed deposit accounts
(b) Savings bank accounts and current accounts
(c) Both savings bank accounts and loan accounts
(d) Both savings bank accounts and cash accounts only
(e) Both current accounts and fixed deposit accounts
Ans: (b) Savings bank accounts and current accounts
Q64. A customer wishes to purchase some US dollars in India. He/she should go to
(a) Public Debt Division of the RBI only
(b) American Express Bank Only
(c) RBI or any branch of a bank which is authorized for such business
(d) Ministry of Foreign Affairs
(e) None of these
Ans: (c) RBI or any branch of a bank which is authorized for such business
Q65. Which of the following organization/ agencies is not associated with the world of banking and finance?
(a) SEBI
(b) AMFI
(c) RBI
(d) ECGC
(e) SPCA
Ans:
(e)
SPCA
Q66. In India, Fixed Fiduciary System of note issue was in force from
(a) 1816 to 1920
(b) 1920 to 1945
(c) 1945 to 1950
(d) 1947 to 1952
(e) 1965 to 1972
Ans: (a) 1816 to 1920
Q67. Regional Rural Banks fall within supervisory purview of
(a) SBI
(b) RBI
(c) SEBI
(d) IRDA
(e) None of these
Ans: (a) SBI
Q68. Which of the following statements is incorrect about NBFCs?
(a) An NBFC cannot accept demand deposits
(b) These institutions trade in the capital market in a variety of assets and liabilities
(c) An NBFC can issue cheques drawn on itself
(d) Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors
(e) NBFIs act as brokers of loanable funds and in this capacity they, intermediate between the ultimate saver and the ultimate investor.
Ans: (c) An NBFC can issue cheques drawn on itself.
Q69. ‘National Financial Switch’ has been setup to facilitate connectivity between the bank’s switches and their ATMs and interbank payment gateway for authentication and routing the payment details of various e-commerce transactions. Which organisation has set-up this switch?
(a) IBRD
(b) IDRBT
(c) SBI
(d) SIDBI
(e) None of these
Ans: (b) IDRBT
Q70. What is meant by “Underwriting”, the term frequently used in financial sector?
(a) Undervaluation of the assets
(b) The act of taking on a risk for a fee
(c) Giving a Guarantee that a loan will not become a bad loan
(d) The act of permission to float an IPO
(e) None of these
Ans: (b) The act of taking on a risk for a fee
Q71. Which of the following organisation agencies are involved in drafting the Union Budge of India?
(a) The Planning Commission
(b) The Comptroller and Auditor General
(c) Administrative Ministries
(d) Both A and B
(e)All
Ans: (c) Administrative Ministries
Q72. The Reserve Bank of India (RBI) extended the timeline for full implementation of the Basel III capital regulations by a year. Now the banks are required to comply with the Basel III norms by 31 March 2019 instead of
(a) 31 March 2016
(b) 31 March 2018
(c) 31 March 2017
(d) 31 March 2015
(e) None of these
Ans: (b) 31 March 2018
Q73. Treasury Bills means
(a) salary bills drawn by Government officials on the treasury
(b) bills drawee by the Government contractors and other suppliers on the treasury for the dues owed to them by the Government
(c) obligation of the Government of India issued by the Reserve Bank of India and payable normally 91 days after issue
(d) a mode of drawings by the Treasury Office on the Reserve Bank of India
(e) None of the above
Ans: (c) obligation of the Government of India issued by the Reserve Bank of India and payable normally 91 days after issue
Q74. Which of the following is the Central Bank of USA?
(a) Federation of Banks, USA
(b) Citigroup, USA
(c) Bank of America
(d) Central Bank of USA
(e) Federal Reserve
Ans:
(e)
Federal Reserve
Q75. All venture Capital Funds must be registered with
(a) RBI
(b) SEBI
(c) Registrar of Companies
(d) Either A and B
(e) None of these
Ans: (b) SEBI
Q76. The banker is under an obligation to take utmost care in keeping secrecy of the details of the customer. However, the obligation of secrecy is not considered essential when
(a) a banker is required to give evidence in the court
(b) there is national emergency and disclosure is essential in the public interest
(c) there are clear proofs of reason to the state and when consent is given by the customer to provide information for the preparation of balance sheet
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q77. Many Co-operative Banks has their licenses cancelled by RB
I. Why?

(a) Because of financial indiscipline
(b) Because of staff and management rift
(c) As a result of labour unrest
(d) Owing to voluntary surrender by the co-operative
(e) All of the above
Ans: (a) Because of financial indiscipline
Q78. Which of the following is incorrect about the acceptance of deposits by the NBFCs?
(a) They are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months
(b) They cannot accept deposits repayable on demand
(c) They should have minimum investment grade credit rating
(d) Their deposits are not insured
(e) The repayment of deposits by NBFCs is guaranteed by RBI
Ans:
(e)
The repayment of deposits by NBFCs is guaranteed by RBI
Q79. In which one of the following states, India’s first Islamic Bank is proposed to be set-up?
(a) Kerala
(b) Tamil Nadu
(c) Odisha
(d) Bihar
(e) None of these
Ans: (a) Kerala
Q80. What do you understand by ‘Para Banking services?
(a) Eligible financial services rendered by banks
(b) Utility services provided by banks
(c) Services provided through business correspondents
(d) Services provided to armed force personnel
(e) None of these
Ans: (a) Eligible financial services rendered by banks
Q81. Indian Parliament recently has passed the bill to empower SEBI to act against ponzi operators and market manipulators more effectively. What is the name of this bill?
(a) The Securities Law (Amendment) Bill, 2014
(b) Judicial Appointments Commission Bill, 2014
(c) The Constitution Bill,2014
(d) The Banking Law,2014
(e) None of these
Ans: (a) The Securities Law (Amendment) Bill, 2014
Q82. Consider the following statements:
(1) Fiat money is a term used for Gold coins
(2) Currency Deposit Ratio is the proportion of the total deposits commercial banks keep as reserves. Which of the above statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(e) None of these
Ans: (d) Neither 1 nor 2
Q83. Which of the following is NOT a foreign bank working in India?
(a) HSBC
(b) Barclays
(c) Standard Chartered
(d) Yes Bank
(e) All are foreign banks
Ans: (d) Yes Bank
Q84. Mangalam village became the first village in India where all households were provided banking facilities. Mangalam village is situated in which of the following Union Territories?
(a) Delhi
(b) Chandigarh
(c) Puducherry
(d) Daman and Diu
(e) Andaman Nicobar
Ans: (c) Puducherry
Q85. In one of his speeches, Pranab Mukherjee said that the government has no plans to dilute the roles of market regulators. This means, the role of which of the following will not be diluted?
(a) Life Insurance Corporation of India (LIC)
(b) Confederation of Indian Industry (CII)
(c) Federation of Chambers of Commerce and Industry (FICCI)
(d) Bureau of India Standards
(e) Securities and Exchange Board of India (SEBI)
Ans:
(e)
Securities and Exchange Board of India (SEBI)
Q86. An agreement, which in fact is a contract, between the RBI and banks for the sale and repurchase of government securities and short-term treasury bills at a future date and for which the RBI indicates ‘the interest rate’, is generally known as
(a) repo rate
(b) bank rate
(c) reverse repo rate
(d) prime lending rate
(e) none of these
Ans: (c) reverse repo rate
Q87. Which of the following is the Central Bank of the country?
(a) RBI
(b) SBI
(c) RRB
(d) NABARD
(e) None of these
Ans: (a) RBI
Q88. The Union Budget for 1995-96 proposed the creation of RIDF in NABARD, with a corpus of Rs. 2,000 cr. What is the full form of RIDF?
(a) Rural India Decoration Forum
(b) Research and Industrial Development Forum
(c) Rural Infrastructure Development Fund
(d) Research and Industrial Development Fund
(e) None of these
Ans: (c) Rural Infrastructure Development Fund
Q89. BEF is the statement which banks submit to RBI relating to:
(a) Transactions in US Dollars
(b) Importers who have not submitted documentary evidence for import within stipulated time period
(c) Over due export bills
(d) Non performing assets
(e) Excess overnight limit position of the bank
Ans: (b) Importers who have not submitted documentary evidence for import within stipulated time period
Q90. Sub-prime refers to
(a) lending done by banks at rates below PLR
(b) funds raised by the banks at sub libor rates
(c) group of banks which are not rate as prime banks as per banker’s almanac
(d) lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
(e) None of the above
Ans: (d) lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
Q91. Which of the following is one of the measures of economic growth of a country?
(a) Volume of direct investment made by foreign countries
(b) Number of companies listed on the stock exchange
(c) Gross domestic product of the nation
(d) Number of foreign nationals working in a country
(e) All of the above
Ans: (c) Gross domestic product of the nation
Q92. Public sector based Central Bank during July 2014 announced its plans to sell 4% of its stake to LIC for Rs. 581 crore. This stake sale is planned to meet bank’s capital requirement of Rs. 2,000 crore this fiscal. With this proposed sale Union Govt.’s holding in Central Bank would come down to ________
(a) 78%
(b) 80%
(c) 84%
(d) 88%
(e) None of these
Ans: (c) 84%
Q93. Who is the first chairperson and managing director of public sector Bharatiya Mahila Bank (BMB)?
(a) Shilpa Phadnis
(b) Usha Anantha Subramanian
(c) Reeba Zachariah
(d) Sudha Misra
(e) None of these
Ans: (b) Usha Anantha Subramanian
Q94. Name the premier institution that is taking care of the financial needs of importers and exporters of our country which was established in the year 198 1
(a) EXPO Bank
(b) Export Import Bank (EXIM)
(c) Merchant Bank
(d) ECGC
(e) None of the above
Ans: (b) Export Import Bank (EXIM)
Q95. Travellers cheque is
(a) a supplementary credit card
(b) a cheque issued by a bank or finance institution which functions as capital
(c) a certificate issued by a bank or finance institution in lieu of cash
(d) a cheque issued by a bank or finance institution which functions as a bond
(e) a prepaid instrument issued by a bank or finance institution which can be substitute of cash
Ans:
(e)
a prepaid instrument issued by a bank or finance institution which can be substitute of cash
Q96. Whenever RBI does some Open Market Operation transactions, actually it wishes to regulate which of the following?
(a) Inflation only
(b) Liquidity in economy
(c) Borrowing powers of the banks
(d) Flow of foreign direct investments
(e) None of the above
Ans: (b) Liquidity in economy
Q97. The central banking functions in India are performed by the
1. Central Bank of India
2. Reserve Bank of India 3. State Bank of India
4. Punjab National Bank

(a) 1, 2 and 3
(b) 2
(c) 1
(d) 2 and 4
(e) None of these
Ans: (b) 2
Q98. Which of the following is not a recommendation of the Narasimham Committee, 1991?
(a) Reduction of CRR and SLR
(b) Phasing out directed Credit Programme
(c) Reduction of capital adequacy ratio
(d) Establishment of ARF fund
(e) Autonomy to public sector bank
Ans: (c) Reduction of capital adequacy ratio
Q99. The concept of’Micro Credit’ essentially concentrates on
(a) consumption smoothening as and when needed
(b) providing safe place to hold savings
(c) accepting deposits
(d) provision of credit to the poor
(e) facility to transfer money
Ans: (d) provision of credit to the poor
Q100. A 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’?
(a) Money
(b) Marginal
(c) Message
(d) Mutual Fund
(e) Mobile Phone
Ans:
(e)
Mobile Phone

Financial Awareness Section 4.

Q301. Refinance facility is provided by NABARD. Which institutions can avail this facility?
(a) State cooperative banks
(b) Regional rural banks
(c) Commercial bank
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q302. Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?
I. It does not accept deposits.
II. It has a limited cash disbursement capacity.
III. Lack of human interface.
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) III, II and I
(e) None of these
Ans: (d) III, II and I
Q303. Which of the following is the correct definition of the term commercial papers?
I. It is nothing but the popular name of the judicial stamp papers used to register financial transactions.
II. It is one of the instruments through which corporates raise debt from the market.
III. It is the name of the ‘Certificate of Deposits’ (CD) provided by the bank to its retail customers.
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) Both I and II
(e) All of these
Ans: (b) Only II
Q304. As we all know, Government of India pays special emphasis on the management of Fiscal Deficit. What is Fiscal Deficit?
(a) The gap between projected of estimated GDP and actual GDP
(b) The gap between the total number and value of the currency notes issued by the RBI uptill now over the number and value of those which are in actual circulation
(c) The gap between the actual borrowings of the Government of India and the expected expenditure for which provision is made in the budget
(d) Excess of government’s disbursement comprising current and capital expenditures over its current receipts (tax/non-tax receipts)
(e) None of the above
Ans: (d) Excess of government’s disbursement comprising current and capital expenditures over its current receipts (tax/non-tax receipts)
Q305. Which one of the following committees was set up by RBI to study the various issues relating to financial benchmarks?
(a) Umesh Chandra
(b) Vijaya Bhaskar
(c) Urjit Patel
(d) Subbu Rao
(e) None of these
Ans: (b) Vijaya Bhaskar
Q306. Drawing, accepting, making or issuing of any promissory note, hundi or bill of exchange expressed to be payable to bearer on demand by a person other than the Reserve Bank of India or the Central Government is prohibited under
(a) Banking Regulation Act, 1949
(b) Section 31 (1) of the Reserve Bank of India Act, 1934
(c) Negotiable Instruments Act, 1881
(d) Indian Contract Act, 1872
(e) None of the above
Ans: (b) Section 31 (1) of the Reserve Bank of India Act, 1934
Q307. The Reserve Bank of India has directed all the banks to ensure that the names of their customers, individuals or corporates, do not appear in any list published by the Security Council Committee. This act/directive of the RBI is to ensure which of the following?
(a) To ensure that the bank loans/advances taken by the individuals/organizations are used only in those activities for which they are taken
(b) To ensure that money deposited in the bank has not come from unknown and unauthorized sources
(c) To ensure that no one visits a foreign nation for any illegal activity by purchasing foreign currency from a bank
(d) To ensure that Indians do not go to a nation where they are being targeted for racial discrimination
(e) None of these
Ans: (c) To ensure that no one visits a foreign nation for any illegal activity by purchasing foreign currency from a bank
Q308. Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets, freely and at market determined exchange rates? Policy of
(a) Capital Account Convertibility
(b) Financial Deficit Management
(c) Minimum Support Price
(d) Restrictive Trade practices
(e) None of the above
Ans: (a) Capital Account Convertibility
Q309. The merit of issuing notes with RBI can be seen is
(a) uniformity
(b) stability in currency
(c) control of credit
(d) All of these
(e) None of these
Ans: (d) All of these
Q310. Which of the following schemes was launched a few years back to provide wage employment to the rural people in India (The programme is being run successfully in addition to NREGA)?
(a) Indira Awas Yojana
(b) Accelerated Rural Water Supply Programme
(c) Total Sanitation Campaign
(d) Sampoorna Grameen Rozgar Yojana
(e) Pradhan Mantri Gram Sadak Yojana
Ans: (d) Sampoorna Grameen Rozgar Yojana
Q311. Which of the following could be considered as an initiative towards promotion of financial inclusion?
(a) Opening of no frills accounts
(b) Appointing business correspondents for servicing rural customers
(c) Opening of bank branches in unbanked districts
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q312. ‘Smart Money’ is a term used for
(a) internet banking
(b) FDRs in banks
(c) credit cards
(d) demand drafts of banks
(e) bank rate
Ans: (c) credit cards
Q313. A Bank/Financial Organisation these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced the organisation’s security awareness manual. This step of the organisation can be classified under, which one of the following categories of measures for a business?
(a) Preventive
(b) Compliance
(c) Corrective
(d) Detective
(e) None of these
Ans: (a) Preventive
Q314. When did World Trade Organisation come into force?
(a) 2nd January, 1948
(b) 1st January, 1995
(c) 12th January, 1948
(d) 15th January, 1946
(e) 13th January, 1947
Ans: (b) 1st January, 1995
Q315. Consider the following statements:
1. RBI in consultation with Union Government on 1 April 2014 capped the Ways and Means Advances (WM

(a) limits for the first half of the new financial year 2014-15 (April 2014-Sep 2014) at 35000 crore rupees. 2. The second half of the limit would be fixed in September 201 4. 3. This notification of Reserve Bank of India (RBI) is aimed at triggering fresh flotation of market loans when the government utilises 75 percent of the WMA limit. Consider the above statements and choose the correct option
(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
(e) None of these
Ans: (d) 1, 2 and 3
Q316. The capital of IMF is made up by contribution of the
(a) credit
(b) deficit financing
(c) member nations
(d) borrowing
(e) All of these
Ans: (c) member nations
Q317. Which of the following bodies promoted Securities Trading Corporation of India Limited (STCI) jointly with the Public Sector Banks?
(a) Securities Exchange Board of India
(b) ICICI Ltd
(c) IDBI Ltd
(d) Reserve Bank of India
(e) IRDA
Ans: (d) Reserve Bank of India
Q318. Quantitative instrument of RBI can be
(a) Bank Rate Policy (BRP)
(b) Cash Reserve Ratio (CRR)
(c) Statutory Liquidity Ratio (SLR)
(d) All of these
(e) None of these
Ans: (d) All of these
Q319. Banks need liquidity to meet which of the following objectives of banking?
(1) To meet deposit withdrawal
(2) To fund loan demands
(3) To maintain public confidence

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (1) & (2)
(e) None of these
Ans: (c) Only (3)
Q320. The weakest link in the co-operative credit system is
(a) non-availability of published data on their functioning
(b) the non-viability of a large number of primary agricultural credit societies
(c) presence of multiple structure and diverse nature of various types of primary societies
(d) Both A and B
(e)All
Ans: (b) the non-viability of a large number of primary agricultural credit societies
Q321. Financial inclusion is a programme of the government to cover the maximum population with bank accounts. What is the current coverage?
(a) 25%
(b) 15%
(c) 40%
(d) 65%
(e) 70%
Ans: (c) 40%
Q322. Which of the following schemes has been launced specifically for helping Senior Citizens to avail loan by mortgage of their residential property?
(a) English Mortgage Scheme
(b) Senior Capital Loan Scheme
(c) Reverse Mortgage Loan Scheme
(d) DEMAT Account Scheme
(e) None of these
Ans: (c) Reverse Mortgage Loan Scheme
Q323. The merchant banking activity in India is governed by
(a) SEBI
(b) RBI
(c) IRDA
(d) All of these
(e) None of these
Ans: (a) SEBI
Q324. What GDP growth rate range for 2014- 15 was estimated in the Economic Survey 2013-14, which was tabled recently in the Lok Sabha?
(a) 5.3 to 5.9%
(b) 5.2 to 5.7%
(c) 5.4 to 5.9%
(d) 5.1 to 5.9%
(e) None of these
Ans: (c) 5.4 to 5.9%
Q325. Which of the following definitions are correct?
(1) Basis points: increase in interest rates in percentage terms
(2) Repo rate: rate at which commercial banks borrow from the RBI by selling their securities or financial assets to the RBI for a long-period of time
(3) Reverse repo rate: rate of interest at which the central bank borrows funds from other banks for a short duration
(4) Cash reserve ratio: minimum percentage of cash deposits that banks must keep with itself to avoid liquidity issues

(a) (1) & (2)
(b) (2), (3) & (4)
(c) (2) & (4)
(d) (3) & (4)
(e) None of these
Ans: (c) (2) & (4)
Q326. Nationalization of banks aimed at all of the following except __________
(a) Provision of adequate credit for agriculture, SME and exports
(b) Removal of control by a few capitalists
(c) Provision of credit to big industries only
(d) Access of banking to masses
(e) Encouragement of a new class of entrepreneurs
Ans: (b) Removal of control by a few capitalists
Q327. Savings account with zero balance can be opened for
(a) persons of high net worth
(b) employees of IT companies
(c) weaker sections of society
(d) women customers
(e) None of the above
Ans: (c) weaker sections of society
Q328. Increased interest rates, as is existing in the economy at present will __________
(a) Lead to higher GDP growth
(b) Lead to lower GDP growth
(c) Mean higher cost of raw materials
(d) Mean lower cost of raw materials
(e) Mean higher wage bill
Ans: (a) Lead to higher GDP growth
Q329. On which one of the following issues can SEBI penalise any company in India?
I. Violation of Banking Regulation Act.
II. Violation of foreign portfolio investment guidelines.
III. For violation of Negotiable Instrument Act.
Select the correct answer using the codes given below:

(a) Only I
(b) I, II, and III
(c) I and II
(d) II and III
(e) All of these
Ans:
(e)
All of these
Q330. In case, a depositor wishes to withdraw his fixed deposits prematurely, banks
(a) do not allow the same till maturity of the deposits
(b) charge a penalty for the same
(c) do not charge any penalty and allow the same
(d) All of the above
(e) None of the above
Ans: (b) charge a penalty for the same
Q331. Which of the following is/are true about the Loan Waiver Scheme for the farmers launched by the Govt of India recently?
(1) The Govt has taken over the debt of the farmers and has made reimbursement to the banks
(2) The Govt has identified 237 lowproductivity districts where farmers would be eligible for a minimum loan relief of Rs. 20,000 even if their land holdings were above two hectares
(3) Andhra Pradesh has the highest number of beneficiaries of the scheme

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (d) All (1), (2) & (3)
Q332. Many a time we read in newspaper about the benefits of National Electronic Funds Transfer (NEFT), a dlivery service launched by the bank. Why do banks advocate for such delivery channels?
(1) It is a system in which no physical transfer takes place, hence risk is very low
(2) In this system banks are not required to transfer any money actually to the account of the customer. Only book adjustment is done. Hence actual fund is not needed
(3) This facility is available to anybody at any place. Even having a bank account is not at all necessary

(a) Only (1) is correct
(b) Only (2) is correct
(c) Only (3) is correct
(d) Both (1) & (2) are correct
(e) All (1), (2) & (3) are correct
Ans: (d) Both (1) & (2) are correct
Q333. Which of the following lendings qualifies as a priority sector loan?
(a) Loan for purchase of gold for marriage of daughter
(b) Loan for consumer durables
(c) Housing loan
(d) Loan for purchase of tractor
(e) None of the above
Ans: (d) Loan for purchase of tractor
Q334. The term ‘Gross National Happiness’ was coined by
(a) Amartya Sen
(b) Bhutan’s King
(c) Maqbool Haq
(d) European Union
(e) Economists of Sweden
Ans: (b) Bhutan’s King
Q335. Which of the following statements regarding New Development Bank to be established by BRICS nations are correct?
(1) The headquarter of the bank will be in Shanghai
(2) It will provide financial assistance to infrastructure projects of BRICS nations only
(3) The proposal for the bank was first made in 2012 summit in New Delh i. Choose the correct code from the options given below:

(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
(e) None of these
Ans: (b) 1 and 3 only
Q336. The Export Import Bank of India was set-up in
(a) July, 1969
(b) April, 1970
(c) January, 1982
(d) April, 1982
(e) None of the above
Ans: (c) January, 1982
Q337. As we all know Securities & Exchange Board of India (SEBI) has taken some corrective steps to restrict functioning of Participatory Notes (P-Notes) in Indian Stock Markets. Why are P-Notes considered dangerous for the financial markets of a country?
(1) This allows a foreign investor to invest funds without knowing the history/ financial health of a company. If the company fails fforeign investors lose their money. Govt of India does not want this as this will bring a bad name to the country
(2) P-Notes allow foreign investors to buy shares of blue chip companies without following Konw Your Customer (KYC) norms. Hence money invested here may not be from a valid and legal source
(3) P-Notes are launched to arrange funds only for social schemes. Due to huge funds available with NRIs for investment they are sending it in bulk. Hence the cost of such investments is very high and it is not commercially viable for banks to accept such investments

(a) Only (1) is correct
(b) Only (2) is correct
(c) Only (3) is correct
(d) Both (1) & (2) are correct
(e) None of these
Ans: (b) Only (2) is correct
Q338. Reserve Bank of India is the lender of the last resort to scheduled commercial banks because
(a) the parties can approach RBI when their limits are exhausted
(b) they are not able to get loans from other banks
(c) RBI meets directly or indirectly all their reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policy
(d) All of these
(e) None of these
Ans: (c) RBI meets directly or indirectly all their reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policy.
Q339. What is the maximum denomination for which coins can be produced in India? (IBPS 2011)
(a) Rs. 1000
(b) Rs. 10
(c) Rs. 100
(d) Rs. 50
(e) Rs. 5
Ans: (a)Rs. 1000
Q340. The main resources of RRBs are
(a) share capital
(b) deposit from the public
(c) borrowing from sponsor banks
(d) refinance from NABARD
(e) All of the above
Ans:
(e)
All of the above
Q341. RBI has sold its entire stake except 1% in which of the following organisations?
(a) DICGC
(b) NABARD
(c) SIDBI
(d) National Housing Bank
(e) None of the above
Ans: (b) NABARD
Q342. Real time gross settlement benefits
(a) the customers
(b) the banks
(c) Reserve Bank of India
(d) Both A and B
(e)None
Ans: (d) Both A and B
Q343. Which of the following means of lending is considered as a priority sector loan?
(a) Loan for purchase of gold for marriage of daughter
(b) Car loan
(c) Housing loan
(d) Loan for purchase of tractor
(e) Education loan
Ans: (d) Loan for purchase of tractor
Q344. Which of the following organisations/ agencies is actively involved in drafting the Union Budget of India?
(a) The Planning Commission
(b) The Comptroller and Auditor General
(c) Administrative Staff of the Lok Sabha
(d) Ministry of Finance
(e) Ministry of Rural Development
Ans: (c) Administrative Staff of the Lok Sabha
Q345. Who among the following has been appointed new chairman of NABARD?
(a) Harsh Kumar Bhanwala
(b) Chandra Shekar
(c) Hemanth Banswal
(d) Amith Mishra
(e) None of these
Ans: (a) Harsh Kumar Bhanwala
Q346. A bank without any branch network that offers its services remotely through online banking, telephone/mobile banking and interbank ATM network alliances is known as
(a) Universal Banking
(b) Indirect Bank
(c) Door Step Bank
(d) A Direct Bank
(e) Unit Banking
Ans: (d) A Direct Bank
Q347. As per the news published in various financial newspapers, the RBI is reworking the roadmap on Capital Account Convertibiliy. If this is done, who amongst the following would be able to invest in foreign projects or acquire assets outside India without any restrictions?
(1) Public Sector Banks
(2) Companies which are registered in India
(3) Govt. of India
(4) Any Individual

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2), (3) & (4)
(e) None of these
Ans: (b) Only (2)
Q348. On 1st March, 1992, Reserve Bank of India announced a new system of exchange rates known as
(a) partial convertibility
(b) liberalised exchange rate system
(c) Either A or B
(d)Both A and B
(e)Neither A nor B
Ans: (d)Both A and B
Q349. The association of the rupee with pound sterling as the intervention currency was broken in
(a) 1990
(b) 1991
(c) 1992
(d) 1993
(e) None of these
Ans: (c) 1992
Q350. As we all know, the cooperative banks in India are passing through a difficult phase and their performance is NOT as glamorous as that of the commercial banks today. What went wrong with cooperative banks?
(1) The cooperative banks disbursed credit on the loans on demand mostly without proper guarantees and documents. Hence repayments were always at the mercy of the borrowers and up to some extent on good crops
(2) The cooperative banks are mostly under the supervisory control of the Panchayats, which are not professionally qualified to control such institutions
(3) Cooperative Banks do not get any relief package from the Govt. Hence they have to manage their affairs on their own resources only

(a) Only (2)
(b) Only (1)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (b) Only (1)
Q351. Financial inclusion makes people to
(a) access financial markets
(b) access credit markets
(c) learn financial matters
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q352. RTGS stands for
(a) Real Time Gross Settlements
(b) Reduced Time Gross Settlements
(c) Relative Time Gross Settlements
(d) Real Total Gross Securities
(e) None of the above
Ans: (a) Real Time Gross Settlements
Q353. Structure of Basel II is based on how many pillars?
(a) Two
(b) Ten
(c) Four
(d) Five
(e) Three
Ans:
(e)
Three
Q354. Which of the following schemes available in the financial markets is not meant for investment purposes?
(a) National savings certificates
(b) Infrastructure bonds
(c) Mutual funds
(d)
(c) Letter of credit
(e) all of these
Ans: (d)
(c) Letter of credit
Q355. CSO in its advanced estimates for the year 2013-14 projected the GDP growth rate at constant prices to be
(a) 4.6%
(b) 4.8%
(c) 4.9%
(d) 5.1%
(e) None of these
Ans: (c) 4.9%
Q356. Special drawing right is an international practice of drawing funds. Which of the following institutions control this special finding facility?
(a) World Bank
(b) Asian Development Bank
(c) Federal Reserve
(d) European Common Market
(e) All of the above
Ans: (a) World Bank
Q357. Consider the following
(1) Deposit rates
(2) Base Rate
(3) Prime Lending Rate Which of the above are decided by the Reserve Bank of India?

(a) Only (1)
(b) Only (1)
(c) Only (3)
(d) Both (2) and (3)
(e) None of these
Ans: (a) Only (1)
Q358. Which of the following acts govern the RBI functions?
(a) RBI Act, 1934
(b) Banking Regulation Act, 1949
(c) Companies Act, 1956
(d) Foreign Exchange Regulation Act, 1973
(e) Foreign Exchange Management Act, 1999
Ans: (a) RBI Act, 1934
Q359. Which of the following terms is NOT used in the Banking world?
(a) Holding Company
(b) Postdated cheque
(c) Credit
(d) Time deposit
(e) Centripetal force
Ans:
(e)
Centripetal force
Q360. The central co-operative banks are in direct touch with
(a) farmers
(b) state co-operative banks
(c) land development banks
(d) central government
(e) None of these
Ans: (b) state co-operative banks
Q361. Till what amount are deposits of public in NBFCs insured?
(a) Rs. 1 lakh
(b) Rs. 50000
(c) Not insured
(d) None of these
(e) All of these
Ans: (c) Not insured
Q362. Banks these days have launched a new scheme product known as “Reverse Mortgage”. The scheme is designed keeping which of the following groups of society in consideration?
(a) Youngsters who have just started earning
(b) Defence personnel whose life is always at high risk
(c) Senior citizens
(d) Women who do not have independent source of income
(e) None of these
Ans: (c) Senior citizens
Q363. Basel norms are important international regulatory stipulations. It is meant for which sector?
(a) Insurance
(b) Banking
(c) Micro Finance
(d) Pension funds
(e) None of the above
Ans: (c) Micro Finance
Q364. In Union Budget 2014 -15, in Defence sector FDI cap raised to _____ from 26% at present?
(a) 51%
(b) 74%
(c) 100%
(d) 49%
(e) None of these
Ans: (d) 49%
Q365. During which plan was the National Bank for Agriculture and Rural Development (NABAR
(d) established to facilitate the rural credit and agricultural development?

(a) Third Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Eighth Five Year Plan
(e) None of these
Ans: (c) Sixth Five Year Plan
Q366. In India, the first bank of limited liabilities managed by Indians and founded in 1881 was
(a) Hindustan Commercial Bank
(b) Oudh Commercial Bank
(c) Punjab National Bank
(d) Punjab and Sind Bank
(e) National Bank
Ans: (b) Oudh Commercial Bank
Q367. Who amongst the following cannot open an account in any bank in India?
(a) One who is not earning regularly
(b) A housewife
(c) A student of 10th standard
(d) A farmer who owns a small piece of land
(e) An individual who is well to do and his source of income in not known
Ans: (c) A student of 10th standard
Q368. The European Union has adopted which of the following as a common currency?
(a) Dollar
(b) Dinar
(c) Yen
(d) Euro
(e) Peso Reserve Bank of India—Structure and Functions 55
Ans: (d) Euro
Q369. Assume that Reserve Bank of India reduces the bank rate by 1%, what will be its impact?
(a) Less liquidity in the market
(b) More liquidity in the market
(c) No change in the liquidity in the market
(d) Mobilisation of more deposits by commercial banks
(e) None of the above
Ans: (b) More liquidity in the market
Q370. For filing and resolving customer complaints, the Banking Ombudsman
(a) charges a fee of Rs. 500
(b) does not charge any fee
(c) charges a fee of Rs. 1500
(d) charges a fee of Rs. 1000
(e) None of the above
Ans: (b) does not charge any fee
Q371. The National Rural Employment Guarantee Act is now known by which of the following names?
(a) Indira Gandhi Rural Employment Guarantee Act
(b) Rajiv Gandhi Rural Employment Guarantee Act
(c) Jawaharlal Nehru Rural Employment Guarantee Act
(d) Mahatma Gandhi Rural Employment Guarantee Act
(e) None of these
Ans: (d) Mahatma Gandhi Rural Employment Guarantee Act
Q372. Many times we see banks advertise -” anywhere Banking: Anytime Banking”. Which of the following product/facilities launched by banks make it possible for the customers to avail banking services 24 hours all seven days?
(1) ATM
(2) Internet Banking
(3) Universal cheque book facility

(a) Only (1)
(b) Only (2)
(c) Both (1) & (2)
(d) Only (3)
(e) All (1), (2) & (3)
Ans: (c) Both (1) & (2)
Q373. Which one of the following does not qualify as priority sector lending by commercial banks?
(a) Software exports
(b) Small business loans
(c) Education loans
(d) Small industries loan
(e) None of the above
Ans: (a) Software exports
Q374. The largest share of Gross Domestic Product (GDP), in India comes from
(a) agriculture and allied sector
(b) manufacturing and construction
(c) service sector
(d) defence and public administration
(e) defence and allied sector
Ans: (c) service sector
Q375. sbiINTOUCH launched by State Bank of India relates to
(a) ATM services
(b) digital branches
(c) infrastructure loans
(d) home loans
(e) None of these
Ans: (b) digital branches
Q376. Exim Bank also provides
(a) refinance facilities
(b) consultancy and technology services
(c) services of finding foreign markets for exporters
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q377. The Reserve Bank of India issues coins and notes of various denominations. At present RBI does not issue coins of which of the following denominations?
(a) 10 paise
(b) 20 paise
(c) 25 paise
(d) 50 paise
(e) 1.00 Rupee
Ans:
(e)
1.00 Rupee
Q378. Banks without the prior approval of the RBI, can not
(a) one a new place of business in India of abroad
(b) shift other wise that within the same centers (city/town/village) of the existing place of business
(c) shift their sole rural branch outside the centre/village is not permitted, as such shifting would render the centre unbanded
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q379. When did RBI demonetise 25 paise coins in the country? (Vijaya Bank 2008)
(a) 2010
(b) 2008
(c) 2011
(d) 2009
(e) 2005
Ans: (c) 2011
Q380. The common feature of all the agricultural credit societies in the country is that
(a) the persons living in cities and town are their members
(b) the agriculturists are their members
(c) only small and marginal farmers are their members
(d) only the farmers having land holding of 8 acre and above are their members
(e) All of the above
Ans: (b) the agriculturists are their members
Q381. What are the cooperative banks at the village level known as?
(a) Central Cooperative Banks
(b) Primary Agricultural Cooperative Societies
(c) Village Cooperative Banks
(d) State Cooperative Banks
(e) None of the above
Ans: (b) Primary Agricultural Cooperative Societies
Q382. Which of the following banks has opened the country’s first, ‘Cash Factory’ in Lucknow which will issue currency notes to all its branches and ATM in that area?
(a) Bank of India
(b) Bank of Baroda
(c) State Bank of India
(d) Union Bank of India
(e) None of these
Ans: (c) State Bank of India
Q383. Which of the following does not qualify as priority sector lending?
(a) Agricultural lending
(b) Education loans
(c) Auto loans
(d) Loans to small scale sector
(e) Housing loan
Ans: (c) Auto loans
Q384. Which of the following is the target fixed for maintaining fiscal deficit in the Union Budget of India?
(a) 4.6% of total budget
(b) 4.6% of GDP
(c) 3.6% of total budget
(d) 3.6% of GDP
(e) None of these
Ans: (b) 4.6% of GDP
Q385. Which of the following foreign banks has been granted license to start its banking operation in India, recently?
(a) Doha Bank
(b) Bank of Japan
(c) Barclays Bank
(d) Kookmin Bank
(e) None of these
Ans: (a) Doha Bank
Q386. Which of the following is an investment advisory discipline?
(a) Corporate Industrial Finance
(b) Offshare Banking
(c) Wholesale Banking
(d) Wealth Management
(e) Trade Finance
Ans: (d) Wealth Management
Q387. As decided by the Reserve Bank of India, all the villages with a population of 2000 will have access to financial services by the end of
(a) 2009-10
(b) 2010-11
(c) 2011-12
(d) 2012-13
(e) None of these
Ans: (c) 2011-12
Q388. The number of regional offices of RBI is
(a) 20
(b) 21
(c) 22
(d) 23
(e) None of these
Ans: (c) 22
Q389. Mortgage is a
(a) security on movable property for a loan given by a bank
(b) security on immovable property for a loan given by a bank
(c) concession on immovable property for a loan given by a bank
(d) facility on immovable property for a loan given by a bank
(e) security on immovable property for a deposit received by a bank.
Ans: (b) security on immovable property for a loan given by a bank.
Q390. The working group set up by the RBI has suggested the launch of an Emergency Fund Facility Scheme for banks. This scheme will help which of the following types of banks?
(a) Public Sector Banks
(b) Small Banks
(c) Urban Cooperative Banks
(d) Private Banks
(e) Foreign Banks
Ans: (c) Urban Cooperative Banks
Q391. The most prominent national level micro finance apex organisation providing micro credit services for women in India is
(a) National Credit Fund for women
(b) Mahila Samridhi Kosh
(c) Rural Women Self Help Group
(d) All of these
(e) None of these
Ans: (a) National Credit Fund for women
Q392. As per the reports in the major financial newspapers, India has urged China to redress imbalance in trade. What does it really mean? It means
(a) India exports more items to China whereas China does not export much to India
(b) India is not able to export much to China whereas its import from China is of higher value
(c) China and India are not at all trade partners. Hence there is no transaction between the two countries
(d) As per WTO laws, India is supposed to export food -grains to China. But China has not placed any order for the same in 2006-07. It has also refused to accept 200 lakh tonnes of wheat exported to it by India
(e) None of these
Ans: (b) India is not able to export much to China whereas its import from China is of higher value.
Q393. Which of the following organization is made specifically responsible for empowering Micro, Small and Medium enterprises in India?
(a) NABARD
(b) RBI
(c) SIDBI
(d) E C G C
(e) SEBI
Ans: (c) SIDBI
Q394. Credit cards are known as
(a) hard money
(b) easy money
(c) soft money
(d) plastic money
(e) real money
Ans: (d) plastic money
Q395. At current prices, the GDP growth rate for the year 2013-14, as projected by CSO stands at
(a) II.9%
(b) 12.3%
(c) 13.3%
(d) 14.5%
(e) None of these
Ans: (b) 12.3%
Q396. 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
(a) Banking Regulation Act, 1949
(b) Banking Companies (Acquisition and Transfer of Undertakings) Acts 1970/1980
(c) RBI Act, 1935
(d) Nationalisation of Banks Act, 1980
(e) None of the above
Ans: (b) Banking Companies (Acquisition and Transfer of Undertakings) Acts 1970/1980
Q397. Mutual funds are regulated by
(a) Association of Mutual Funds of India (AMFI)
(b) Securities and Exchange Board of India (SEBI)
(c) Reserve Bank of India
(d) IRDA
(e) None of these
Ans: (b) Securities and Exchange Board of India (SEBI)
Q398. Banks borrow money from the RBI on which of the following rates?
(a) Reverse repo rate
(b) Repo rate
(c) SLR
(d) CRR
(e) Savings rate
Ans: (b) Repo rate
Q399. KYC guidelines followed by the banks have been framed on the recommendations of the
(a) Ministry of Home Affairs
(b) Ministry of Rural Development
(c) Indian Banks Association
(d) Financial Intelligence Unit
(e) Reserve Bank of India
Ans:
(e)
Reserve Bank of India
Q400. Which of the following organisations/ banks has done a commendable work in the field of micro-finance and was awarded Nobel Prize also in the past?
(a) Gramin Bank of Bangladesh
(b) CRY
(c) ASHA
(d) NABARD
(e) None of these
Ans: (a) Gramin Bank of Bangladesh

Financial Awareness Section 3.

Q201. What is not a mechanisms that contributes to the success of micro credits?
(a) Dynamic incentives
(b) Peer monitoring
(c) Regular repayment schedules
(d) Collaterals
(e) All of these
Ans: (d) Collaterals
Q202. Which of the following schemes is not meant for investment purposes?
(a) National savings certificates
(b) Infrastructure bonds
(c) Mutual funds
(d) Letter of credit
(e) None of these
Ans: (d) Letter of credit
Q203. The formal beginning of the merchant banking services in India began in 1967, when the Reserve Bank of India provident licence to the
(a) State Bank of India
(b) Oriental Bank of Commerce
(c) Grindlays Bank
(d) Federal Bank
(e) None of the above
Ans: (c) Grindlays Bank
Q204. The fiscal deficit target for year 2015 (2014- 15) has been retained at the level announced by former Finance Minister P.Chidambaram in his interim budget. What is this level?
(a) 4.1% of GDP
(b) 5.7% of GDP
(c) 4.8% of GDP
(d) 4.5% of GDP
(e) None of these
Ans: (a) 4.1% of GDP
Q205. Consider the following statements in regard to ‘marginal standing facility (MSF)’ of RBI:
(1) It will help in reducing volatility in the overnight lending rates in the interbank market
(2) The borrowing under the MSF should be over and above the statutory liquidity requirement
(3) It will not help in reducing lending rates. Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) only 3
(e) None of these
Ans: (a) 1 only
Q206. The branding line of Bank of Baroda is
(a) International Bank of India
(b) India’s International Bank
(c) India’s Multinational Bank
(d) World’s local Bank
(e) None of these
Ans: (b) India’s International Bank
Q207. The commercial banking system in India consists of
(a) nationalised banks and private sector banks
(b) scheduled and non-scheduled banks
(c) regional rural banks, Co-operative banks land development banks
(d) All of the above
(e) None of the above
Ans: (b) scheduled and non-scheduled banks
Q208. Which of the following best describes the Securities and Exchange Board of India?
(a) SEBI is the regulator for the capital markets
(b) SEBI protects the interest of investors
(c) SEBI is for ethical practices
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q209. An average citizen cannot open a Savings account in which of the following?
(a) Commercial bank
(b) Post office
(c) Co-operative bank
(d) RBI
(e) None of the above
Ans: (d) RBI
Q210. Banking Ombudsman Scheme is applicable to the business of
(a) all scheduled commercial banks excluding RRBs
(b) all scheduled commercial banks including RRBs
(c) only public sector banks
(d) all banking companies
(e) all scheduled banks except private banks
Ans: (b) all scheduled commercial banks including RRBs
Q211. Which of the following is an easy way of providing credit to the farmer community?
(a) Kisan Credit Card
(b) Indira Vikas Patra
(c) National Saving Certificates
(d) Loan against gold
(e) None of these
Ans: (a) Kisan Credit Card
Q212. Which of the following does not pertain to non performance assets?
(a) Sub standard assets
(b) doubtful assets
(c) loss assets
(d) all the above
(e) standard assets
Ans:
(e)
standard assets
Q213. Which of the following aspects are outlined by the loan policy of a bank?
(a) Rating standards
(b) Lending procedures
(c) Financial covenants
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q214. Real national income growth refers to
(a) national income growth adjusted for inflation
(b) national income growth adjusted for population growth
(c) national income growth adjusted for depreciation rate
(d) national income growth adjusted for saving growth
(e) national income growth adjust for saving
Ans: (a) national income growth adjusted for inflation
Q215. The bank to launch ‘video branch’ is?
(a) HSBC
(b) ICICI
(c) IndusInd
(d) Yes Bank
(e) None of these
Ans: (c) IndusInd
Q216. Which one of the public sector bank has completed 100 years of its establishment on 21st December, 2011?
(a) Central Bank of India
(b) State Bank of India
(c) Punjab National Bank
(d) Bank of Baroda
(e) Allahabad Bank
Ans: (a) Central Bank of India
Q217. The main function of IMF is to
(a) give financial investment loans to devoloping countries
(b) act as a private sector lending arm of the World Bank
(c) help of solve balance of payment problems of member countries
(d) arrange international deposits from banks
(e) None of the above
Ans: (c) help of solve balance of payment problems of member countries
Q218. Which of the following functions are not being performed by the Reserve Bank of India?
(a) Regulation of banks in India
(b) Regulation of foreign direct investment in India
(c) Foreign currency management in India
(d) Control and supervision of money supply
(e) Currency management in India
Ans: (b) Regulation of foreign direct investment in India
Q219. Coins which were minted in with the ‘Hand Picture’ are available since (IOB 2010)
(a) independence
(b) 1965
(c) 2000
(d) 2005
(e) 2010
Ans: (d) 2005
Q220. Reserve Bank has permitted RRBs for opening/maintaining non-residents (ordinary/external) accounts in rupees and for acceptance of FCNR
(2) deposits subjects to the condition that

(a) the bank should have a positive net worth and earned net profit during the preceding year
(b) the bank should not have defaulted in maintenance of CRR/SLRrequirements on more than three occasions during the preceding 2 years
(c) net NPA level of the bank should not exceed 5% of the outstanding advances as on 31st March of the preceding year
(d) Both B and C
(e) All of these
Ans:
(e)
All of these
Q221. RBI has released its guidelines for entry of new banks in the private sectorin the month of February 201 3. One of the norms is at least a prescribed percentage of branches of new bank should be set in unbanked rural centres with a population of upto 9,999 people. What is the percentage of such branches prescribed in the norms?
(a) 10%
(b) 15%
(c) 18%
(d) 25%
(e) Other than those given as options
Ans: (d) 25%
Q222. A bank’s ‘fixed deposit’ is also referred to as a
(a) term deposit
(b) savings bank deposit
(c) current deposit
(d) demand deposit
(e) home savings deposit
Ans: (a) term deposit
Q223. Which of the following is not considered one among the loans under Retail Banking?
(a) Car loan
(b) Housing loan
(c) Personal loan
(d) Education loan
(e) Infrastructure loan
Ans:
(e)
Infrastructure loan
Q224. Which of the following is/are the components of the Fiscal Deficit?
I. Budgetary Deficit
II. Market Borrowing
III. Expenditure made from Pradhan Mantri Rahat Kosh
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) Only III
(d) All of these
(e) None of these
Ans: (d) All of these
Q225. Recently RBI issued new guidelines on loan restructuring of Non-banking Financial Companies (NBFCs). The guidelines were based on the recommendation of which Committee?
(a) Nachiket Mor Committee
(b) Urijit Patel Committee
(c) Bimal Jalan Committee
(d) B. Mahapatra Committee
(e) None of these
Ans: (d) B. Mahapatra Committee
Q226. Interest on savings bank account is now calculated by banks on
(a) minimum balance during the month
(b) minimum balance from 7th to last day of the month
(c) minimum balance from 10th to last day of the month
(d) maximum balance during the month
(e) daily product basis
Ans: (c) minimum balance from 10th to last day of the month
Q227. As per the Reserve Bank of India (RBI), the economic conditions in India are not yet suitable for full convertibility of Rupee. At present Rupee is convertible at which of the following accounts?
(1) Fully at Capital Account
(2) Fully at Current Account
(3) Partially at Trade Account

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (1) & (3)
(e) None of these
Ans: (b) Only (2)
Q228. Interest is usually paid on money market instruments
(a) at maturity
(b) on request
(c) twice a year
(d) annually
(e) All of these
Ans: (a) at maturity
Q229. Who decides on the quantity of coins to be minted?
(a) The Government of India
(b) RBI
(c) SBI
(d) All of the above
(e) None of the above
Ans: (a) The Government of India
Q230. Money Laundering normally involves
(a) placement of funds
(b) layering of funds
(c) integration of funds
(d) All
(e)None
Ans: (d) All
Q231. All Regional Rural Banks (RRBs) are required to maintain their entire Statutory Liquidity Ratio (SLR) in
(a) government and other approved securities
(b) current accounts with sponsor banks
(c) time deposits with sponsor banks
(d) gold holdings only
(e) All of the above
Ans: (a) government and other approved securities
Q232. In E-commerce what is meant by B2B?
(a) It means trade between business to business
(b) The deals between business to banks
(c) It suggests transactions between banks and capitalists
(d) All of the above
(e) None of the above
Ans: (a) It means trade between business to business
Q233. Structure of Basel II is based on how many pillars?
(a) Two
(b) Ten
(c) Four
(d) Five
(e) Three
Ans:
(e)
Three
Q234. What is a fiscal deficit?
(a) It is a gap between the values of exports and imports
(b) It is a gap between exports and imports minus external borrowings
(c) It is a gap between total expenditure and total receipts of the government
(d) It is a gap between total receipts minus external borrowings
(e) None of the above
Ans:
(e)
None of the above
Q235. Consider the following statements:
1. The Reserve Bank of India (RBI) has said the investment limit in the inflation indexed bonds for individuals has been doubled to Rs 10 lakh.
2. Interest rates on the bonds are linked to Consumer Price Index (CPI). Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 2
(c) 2 only
(d) Either 1 or 2
(e) None of these
Ans: (b) 1 and 2
Q236. The headquarters of IMF and World Bank are located at
(a) Geneva and Montreal
(b) Geneva and Vienna
(c) New York and Geneva
(d) Washington DC
(e) Nigeria
Ans: (d) Washington DC
Q237. The European Union has adopted which of the following as a common currency?
(a) Dollar
(b) Dinar
(c) Yen
(d) Peso
(e) Euro
Ans:
(e)
Euro
Q238. RBI stipulates a healthy mix of CASA in the business figures of banks. What does it denote?
(a) Customer Analysis and Savings Pattern
(b) Cost Appreciation and Selling Analysis
(c) Current Account and Savings Account
(d) Credit and Savings Aggregate
(e) None of the above
Ans: (c) Current Account and Savings Account
Q239. Which of the following is NOT a function of a bank?
(a) Providing project finance
(b) Selling Mutual Funds
(c) Deciding policy rates like CRR, Repo Rate/SLR etc
(d) Settlement of payments of behalf of the customers
(e) All of these are functions of a bank
Ans: (c) Deciding policy rates like CRR, Repo Rate/SLR etc
Q240. Which of the following does not come under the category of development banks?
(a) Industrial Development Bank of India
(b) Small Industries Development Bank of India
(c) Industrial Investment Bank of India
(d) State Finance Corporation
(e) Export–Import Bank
Ans: (b) Small Industries Development Bank of India
Q241. The index of financial inclusion has been launched for the first time in 2008 by
(a) CII
(b) FICCI
(c) NCAER
(d) ICRIER
(e) IIFI
Ans: (d) ICRIER
Q242. What is Forex?
(a) It is buying of foreign currency
(b) It is selling of foreign currency
(c) It is buying of one currency and selling of another currency
(d) It is simultaneous buying of one currency and selling of another currency
(e) None of the above
Ans: (a) It is buying of foreign currency
Q243. Banks in their daily business, face various kinds of risks. Which of the following is one such major risk?
(a) Customer risk
(b) Reputation
(c) Goodwill risk
(d) Protection risk
(e) Operational risk
Ans:
(e)
Operational risk
Q244. In the Union Budget 2014-15, the govt. announced setting up of a commission to bring in reforms related to spending for achieving maximum output. What is the name given to this commission?
(a) Expensable Management Committee
(b) Expenditure Management Commission
(c) Expedia Management Commission
(d) Expenditure Maximum Commision
(e) None of these
Ans: (b) Expenditure Management Commission
Q245. ‘Basel III’ norms target at which of the following?
(1) Improve the banking sector’s ability to absorb shocks arising from financial and economic stress
(2) Improve risk management and governance
(3) Strengthen banks’ transparency. Choose the correct answer using the codes given below:

(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
(e) None of these
Ans: (d) 1, 2 and 3
Q246. Which of the following is/are the major concepts visible in today’s banking industry in India?
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Both (2) & (3)
(e) All (1), (2) & (3)
Ans:
(e)
All (1), (2) & (3)
Q247. An institution which accepts deposits, makes business loans and offers related services is called
(a) Saving bank
(b) Commercial bank
(c) Investment bank
(d) Development bank
(e) Central bank
Ans: (b) Commercial bank
Q248. Which of the following policies is known as Annual Policy Statement?
(a) Annual budget of Central Government
(b) Credit and monetary policy of RBI
(c) Foreign trade policy of DGFT
(d) Regulations issued by SEBI
(e) None of the above
Ans: (b) Credit and monetary policy of RBI
Q249. As per the existing policy, the Cash Reserve Ratio (CRR) of scheduled banks is fixed at a certain percentage of their NDTL. What is full form of NDTL?
(a) New Demand and Tenure Liabilities
(b) Net Demand and Time Liabilities
(c) National Deposits and Total Liquidity
(d) Net Duration and Total Liquidity
(e) New Deposits and Term Liquidity
Ans: (b) Net Demand and Time Liabilities
Q250. Which of the following is not a part of the scheduled banking structure in India?
(a) State co-operative banks
(b) Public sector banks
(c) Private sector banks
(d) Regional rural banks
(e) Moneylenders
Ans:
(e)
Moneylenders
Q251. Which of the following is true about the “Village Grain Bank Scheme”?
(1) The Scheme was launched to provide safeguards against starvation during the period of natural calamities or lean season
(2) The grain banks are set up in foodscarce areas like drought-prone areas, hot and cold desert areas, tribal areas and inaccessible hilly areas
(3) Village Panchayats, who were running village grain banks earlier, are now not authorised to run the same. Instead, the authority is now given to NGOs and SHGs in the village

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) Only (1) & (2)
(e) All (1), (2) & (3)
Ans: (d) Only (1) & (2)
Q252. Which among the following defines a non performing asset?
(a) In a loan account, the principal due has not been paid for more than ninety days
(b) In a loan account, the interest due has not been paid for more than ninety days
(c) Both A and B
(d) Assets that have not been commented upon by the bank auditors
(e) None of the above
Ans: (c) Both A and B
Q253. An unsecured loan extended by one corporate to another is called
(a) commercial papers
(b) treasury bill
(c) inter-corporate deposits
(d) certificates of deposits
(e) All of the above
Ans: (c) inter-corporate deposits
Q254. Which one of the following is the correct sequence of contribution to gross domestic product in India by the various sectors of the economy in last 10 years?
(a) Agriculture-Industry-Service
(b) Agriculture-Service-Industry
(c) Service-Agriculture-Industry
(d) Service-Industry-Agriculture
(e) None of the above
Ans: (d) Service-Industry-Agriculture
Q255. Consider the following Statements:
(1) Arun Jaitley is a member of the Board of Governors of the Asian Development Bank (ADB)
(2) Asian Development Bank is based in Phillippines. Choose the correct statement/s using the following codes:

(a) 1 only
(b) 2 only
(c) Either 1 or 2
(d) Both 1 and 2
(e) None of these
Ans: (a) 1 only
Q256. Which institution provides long run finance to industries?
(a) UTI
(b) LIC
(c) GIC
(d) IDBI
(e) All of these
Ans: (d) IDBI
Q257. How many banks are there in public sector at present?
(a) 28
(b) 27
(c) 19
(d) 20
(e) None of these
Ans: (b) 27
Q258. Which of the following is not a function of the Reserve Bank of India?
(a) Fiscal policy functions
(b) Exchange control functions
(c) Insurance, exchange and destruction of currency notes
(d) Monetary authority functions
(e) Supervisory and control function
Ans: (a) Fiscal policy functions
Q259. The Reserve Bank of India began production of notes in 1938, issuing Rs. 25101000 notes. Rs. 1000 note was re-introduced again in (IBPS 2012)
(a) 1987
(b) 2000
(c) 2003
(d) 2006
(e) 2010
Ans: (c) 2003
Q260. Out of total priority sector advances of RRBs, atleast…… should be advanced to weaker sections
(a) 25%
(b) 50%
(c) 60%
(d) 75%
(e) 90%
Ans: (a) 25%
Q261. Which of the following is/are the major reforms the Govt has introduced in the banking sector?
(1) Dismantling the complex system of interest rate controls
(2) Eliminating prior approval of the RBI for large loans
(3) Introduction of capital adequancy norms and a few other prudential norms

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (c) Only (3)
Q262. A ‘Debit Card’ is issued by a bank to
(a) all customers of a bank
(b) all customers having savings bank account with a bank
(c) all customers having loan account with a bank
(d) a bank customer who is income tax assesee
(e) all corporate salary account holder
Ans: (b) all customers having savings bank account with a bank
Q263. When banks make advances to limited companies against their assets, the required forms are to be presented to the Registrar companies within………….. from the date of execution
(a) 21 days
(b) 30 days
(c) 1 month
(d) 2 months
(e) None of these
Ans: (b) 30 days
Q264. Which of the following is/are the Non-tax Revenue components of the Union Budget of India?
I. Customs Duties
II. Interest Receipts
III. Dividends and Profits
Select the correct answer using the codes given below:

(a) Only I
(b) Only II
(c) II and III
(d) Only 111
(e) All of these
Ans: (c) II and III
Q265. In international banking system, what does the TIBOR stands for ___?
(a) Tokyo Interbank Offered Rate
(b) Taiwan Interbank Offered Rate
(c) Thailand Interbank Offered Rate
(d) Tongling Interbank Offered Rate
(e) None of these
Ans: (a) Tokyo Interbank Offered Rate
Q266. Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of
(a) Minors
(b)Married women
(c) Senior citizens
(d)Govt employees
(e) Rural residents
Ans: (c) Senior citizens
Q267. As per the news published in major newspapers, the Reserve Bank of India (RBI) raised Statutory Liquidity Ratio (SLR) by 100 basis points to 25%. What was/were the reason (s) owing to which RBI raised the SLR?
(1) It will help in reducing liquidity in the market
(2) Inflation will come down substantially
(3) It will facilitate companies to launch their IPOs as the financial climate will become conducive for the same

(a) Only (1)
(b) Only (2)
(c) Only (1) & (2)
(d) Only (2) & (3)
(e) All (1), (2) & (3)
Ans: (c) Only (1) & (2)
Q268. Government securities with terms of more than 1 year are called
(a) government bonds
(b) treasury bills
(c) bills of exchange
(d) capital bills
(e) None of the above
Ans: (a) government bonds
Q269. Under Bretton Woods System, as a member of IMF, India declared its par value of rupee in terms of
(a) British pound
(b) US dollar
(c) a basket of currency
(d) gold
(e) None of the above
Ans: (d) gold
Q270. One of the major challenges banking industry is facing these days is money laundering. Which of the following acts/ norms are launched by the banks to prevent money laundering in general?
(a) Know Your Customer Norms
(b) Banking Regulation Act
(c) Negotiable Instrument Act
(d) Narcotics and Psychotropic Substance Act
(e) None of these
Ans: (a) Know Your Customer Norms
Q271. How many types of primary agricultural credit societies are there in our country?
(a) Large-size societies which include Rural Banks, Agricultural Banks and credit unions
(b) Service co-operative
(c) Other small size societies
(d) All of the above
(e) None of the above
Ans:
(e)
None of the above
Q272. What is the name given to the online payment services that all internet banking customers can use?
(a) E pay
(b) E-commerce
(c) ECS
(d) All of these
(e) None of these
Ans: (a) E pay
Q273. Which of the following is not considered a money market instrument?
(a) Treasury bills
(b) Repurchase Agreement
(c) Commercial Paper
(d) Certificate of Deposit
(e) Shares and bonds
Ans:
(e)
Shares and bonds
Q274. Consider the following statements in the context of governance.
I. Encouraging foreign direct investment inflows
II. Privatisation of higher educational institutions
III. Down-sizing of bureaucracy Which of the above can be used as measures to control the fiscal deficit in India?

(a) Only I
(b) Only II
(c) Only III
(d) All of the above
(e) None of the above
Ans: (d) All of the above
Q275. The public sector banks are banks where a majority state is held by the Government. Which of the following banks is the second largest public sector bank among the 236 PSBs in India in terms of profit?
(a) Bank of India
(b) Punjab National bank
(c) bank of baroda
(d) Central Bank of India
(e) None of these
Ans: (c) bank of baroda
Q276. Which one of the following institutions publish the report of ‘World Economic Outlook’?
(a) IMF
(b) World Bank
(c) RBI
(d) UNCTAD
(e) Citi Bank
Ans: (a) IMF
Q277. SEBI is a/n
(a) Advisory body
(b) Statutory body
(c) Constitutional body
(d) Non-statutory body
(e) Registered as a society
Ans: (b) Statutory body
Q278. 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.
Select the correct answer using the codes given below:

(a) I and II
(b) II and III
(c) I, II and III
(d) All of these
(e) None of these
Ans: (d) All of these
Q279. One of the major challenges banking industry is facing these days is deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following acts has been passed to prevent this activity?
(a) Payment & Settlements Act
(b) Banking Regulation Act
(c) Negotiable Instruments Act
(d) Narcotics and Psychotropic Substance Act
(e) Prevention of Money Laundering Act
Ans:
(e)
Prevention of Money Laundering Act
Q280. A Central Co-operative Bank is generally headquartered at
(a) an important town of the district
(b) state capital
(c) same place which is the headquarter of the district
(d) the place where from the Central Government is run
(e) All of the above
Ans: (c) same place which is the headquarter of the district
Q281. The lead bank scheme for public sector banks does not cover
(a) metropolitan cities
(b) all states and union territories
(c) backward distance
(d) rural areas only
(e) None of these
Ans: (a) metropolitan cities
Q282. The term ‘Currency of India’ refers to
(a) one rupee notes and coins
(b) bank notes issued by Reserve Bank of India viz., Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100 and for other higher denominations
(c) one rupee notes and coins and bank notes issued by Reserve Bank of India
(d) one rupee notes only
(e) None of the above
Ans: (a) one rupee notes and coins
Q283. All merchant banks must be worth atleast
(a) Rs. 1 crore
(b) Rs. 2 crore
(c) Rs. 3 crore
(d) Rs. 4 crore
(e) Rs. 5 crore
Ans: (a)Rs. 1 crore
Q284. The revival of the Kisan Vikas Patra (KVP) was announced in the Union Budget 2014-15 on 10 July 201
4. The KVP was discontinued from November 2011 on the recommendation of which committee’s recommendations?

(a) Shyamlal Kunde Committee
(b) Shyama Prasad Committee
(c) Shyamala Gopinath Committee
(d) Gopinath Ghokle Committe
(e) None of these
Ans: (c) Shyamala Gopinath Committee
Q285. Which of the following is not correctly matched?
(a) Chitra Ramkrishna – National Stock Exchange
(b) Chanda Kochar – ICICI Bank
(c) Naina Lal Kidwai – HSBC
(d) Shikha Sharma – SBI
(e) None of these
Ans: (d) Shikha Sharma – SBI
Q286. Which of the following commissions setup by the President of India decides the distribution of tax incomes between the Central and State Governments?
(a) Central Law Commission
(b) Pay Commission for Government Employees
(c) Administrative Reforms Commission
(d) Planning Commission
(e) Finance Commission
Ans:
(e)
Finance Commission
Q287. Money deposited with the bank becomes a debt due
(a) from the banker
(b) from the customer
(c) to the customer
(d) Either A and B
(e) None of these
Ans: (b) from the customer
Q288. By increasing repo rate, the economy may observe the following effects __________
(a) Rate of interest on loans and advances will be costlier
(b) Industrial output would be affected to an extent
(c) Banks will increase rate of interest on deposits
(d) Industry houses may borrow money from foreign countries
(e) All of these
Ans: (c) Banks will increase rate of interest on deposits
Q289. As per the new guidelines issued by SEBI, companies are required to list shares within how many days of the closure of the Initial Public Offers (IPOs)?
(a) 60 days
(b) 12 days
(c) 30 days
(d) 45 days
(e) None of these
Ans: (b) 12 days
Q290. Which of the following statements is correct about soiled/mutilated note?
(a) All banks are authorised to accept soiled notes across their counters and pay the exchange value
(b) Banks are expected to offer this service even to non-customers
(c) All public sector bank branches and currencychestbranchesofprivate sector banks are authorised to adjudicate and pay value in respect of mutilated notes
(d) The RBI has also authorised all commercial bank branches to treat certain notes in ‘two pieces’ as soiled notes and pay exchange value
(e) All of the above
Ans:
(e)
All of the above
Q291. Which of the following is/are the reasons owing to which about 105 million new people are added to the list of hungry people and the total number of the same has reached about 1 billion?
(1) Unprecedented increase in food prices, particularly in poor nations
(2) Cut in the supply of foodgrains to poor nations by many European countries
(3) Sudden increase in population of the countries like Uganda, Ethiopia, Sudan and Nabibia as many refugees have taken shelter there

(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All (1), (2) & (3)
(e) None of these
Ans: (a) Only (1)
Q292. Which among the following committees had recommended Income Recognition and assets classification norms?
(a) Rangarajan committee
(b) Goiporia committee
(c) Narasimhan committee;
(d) Jankiraman committee
(e) none of the above
Ans: (c) Narasimhan committee;
Q293. 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
(a) principal and agent relationship
(b) financer and financee relationship
(c) bailor and bailee relationship
(d) general relationship
(e) specific relationship
Ans: (d) general relationship
Q294. Which of the following is not included in the estimates of National Income?
(a) Sale of collector’s items
(b) Addition to inventory, but not sale of the company’s products
(c) Market rent of self owned house
(d) Cost of government services
(e) None of the above
Ans: (a) Sale of collector’s items
Q295. Consider the following statements:
(1) RBI has lowered Statutory Liquidity Rate (SLR) by 0.50% in its June review
(2) Reduction in SLR helps in increasing credit availability in the market Which of the above statement (s) is/are correct?

(a) 1 only
(b) 2 only
(c) Either 1 or 2
(d) Both 1 and 2
(e) None of these
Ans: (d) Both 1 and 2
Q296. Open Added Money Market Scheme was firstly introduced by
(a) UTI
(b) IDBI
(c) ICICI
(d) LIC
(e) None of these
Ans: (b) IDBI
Q297. Which of the following organisations/ agencies has asked all the banks in India to form customer service panels at branch levels?
(a) Indian Banks’ Association
(b) Reserve Bank of India (RBI)
(c) Supreme Court of India
(d) Securities & Exchange Board of India (SEBI)
(e) None of these
Ans: (b) Reserve Bank of India (RBI)
Q298. As we all know, banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called
(a) statutory liquidity ratio
(b) cash reserve ratio
(c) bank deposit
(d) reverse repo
(e) government securities
Ans: (b) cash reserve ratio
Q299. Who decides on the value and volume of bank notes to be printed and on what basis? (SBI 2011)
(a) Finance Ministry
(b) Planning Commission
(c) RBI
(d) Stock exchange
(e) None of these
Ans: (c) RBI
Q300. The Regulatory Authority for Regional Rural Banks is
(a) Sponsor Bank
(b) Central Government
(c) State Government
(d) RBI and NABARD
(e) All of these
Ans: (d) RBI and NABARD