Financial Institutions & Banking combined by AdeniyiHadizah

VIEWS: 31 PAGES: 221

									              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank
Question        The Shipping Credit and Investment Company of India Ltd. has
                changed its name to ________ effective from October 1992.
Correct Answer SCICI Ltd

Your Answer      SCICI Ltd


Multiple Choice Multiple Answer
Question        IFC provides financial assistance :-

Correct Answer Through loans , Through purchase of shares , For economic
               development
Your Answer    Largely as aid , Through loans


Select The Blank
Question        Period of Holiday Insurance is ________.

Correct Answer Six months or less

Your Answer      Six months or less


Multiple Choice Multiple Answer
Question        From time to time RBI has issued :-

Correct Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
               bonds
Your Answer    Straight coupon bonds , Inflation linked bonds , Zero coupon
               bonds

Multiple Choice Multiple Answer
Question        R B I issues currency notes against the security of:-

Correct Answer Gold bullion , Foreign securities , GOI securities

Your Answer      Gold bullion , Foreign securities , GOI securities


Multiple Choice Single Answer
Question        The type of banking involving a small number of Large
                Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking

Your Answer      Wholesale Banking


True/False
Question       NABARD is an apex institution in the field of Integrated Rural
               Development.
Correct Answer True

Your Answer       True


Select The Blank
Question        The ________ are buy and hold investors and almost never
                trade on their investments.
Correct Answer Provident Funds

Your Answer       Mutual Funds


Multiple Choice Multiple Answer
Question        Under Project Finance Scheme IDBI provides assistance for :-

Correct Answer New Projects , Renovation , Modernisation

Your Answer       New Projects , Renovation , Modernisation


Multiple Choice Multiple Answer
Question        In case of a Life policy it is possible to withdraw from the
                obligation to contribute further premium by :-
Correct Answer Surrendering the policy , Converting it into paid up policy ,
                Assigning it in the open market
Your Answer     Surrendering the policy , Converting it into paid up policy ,
                Assigning it in the open market

Multiple Choice Multiple Answer
Question        IDA lends to poor countries : -

Correct Answer By lending at 0% interest. , For periods up to ten years , By
               borrowing from IBRD
Your Answer    By borrowing from IBRD , By lending at 0% interest. , For
               periods up to ten years

Multiple Choice Single Answer
Question        Financial institutions deal in :-

Correct Answer Financial assets

Your Answer       Financial assets


Multiple Choice Multiple Answer
Question        Functions of a Bank's H.O. include:-

Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer      Liaison with RBI , Evolve Policies , Vigilance & Control


Multiple Choice Single Answer
Question        Treasury bills are issued by :-

Correct Answer RBI

Your Answer      RBI


True/False
Question         The bids for T-Bills are on price/interest basis.

Correct Answer True

Your Answer      True


True/False
Question         No TDS is deducted on Interest paid on CDs.

Correct Answer True

Your Answer      True


Multiple Choice Single Answer
Question        The underdeveloped markets are characterised by :-

Correct Answer Government regulation and control

Your Answer      Government regulation and control


Multiple Choice Multiple Answer
Question        Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer      Sponsor , Trust , Asset Management company


Multiple Choice Multiple Answer
Question        Prominent Institutional Investors are :-

Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Your Answer      Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds


Multiple Choice Single Answer
Question        A record of the holdings of GOI dated securities of each holder
                is contained in :-
Correct Answer SGL pass book

Your Answer       SGL pass book


Multiple Choice Single Answer
Question        The unorganised financial system includes :-

Correct Answer Indigenous bankers

Your Answer       Indigenous bankers


Multiple Choice Single Answer
Question        SIDCs & SIICs are under the control of :-

Correct Answer State Governments

Your Answer       State Governments


True/False
Question       PFC has been persuading State Governments restructuring of
               their power sector to make them viable.
Correct Answer True

Your Answer       True


Match The Following
Question                   Correct Answer           Your Answer

Advances                   Loans/cash credits       Loans/cash credits

Cash withdrawal facility   ATM                      ATM

Remittances                MT/DD/TT/EFT             MT/DD/TT/EFT

Government business        Collection of taxes      Collection of taxes


Select The Blank
Question        GIC raises funds to meet claims from ________.

Correct Answer Premium collected

Your Answer       Premium collected


Select The Blank
Question        The CRAFICARD recommended the establishment of
                ________.
Correct Answer NABARD

Your Answer      NABARD


Multiple Choice Multiple Answer
Question        The objective NEF Scheme of SIDBI is to provide equity support
                to :-
Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing
                units in tiny & small scale sector
Your Answer     New Units in tiny Sector , New Units in Small Sector , Existing
                units in tiny & small scale sector

Multiple Choice Single Answer
Question        Which of the following institution was set up as a subsidy of RBI
                in 1964?
Correct Answer IDBI

Your Answer      IDBI


Select The Blank
Question        Kisan Vikas Patra are issued through ________.

Correct Answer Post Offices

Your Answer      Post Offices


Multiple Choice Single Answer
Question        DFHI was incorporated under the :-

Correct Answer Companies Act, 1956

Your Answer      Companies Act, 1956


Multiple Choice Single Answer
Question        Which one of the following is not a deposit account?

Correct Answer Cash Credit account

Your Answer      Cash Certificate


True/False
Question       CP is a usance promissory note hence it can be negotiated by
               endorsement & delivery.
Correct Answer True

Your Answer      False
Select The Blank
Question        The ________ meet the long and medium term credit needs of
                agriculture.
Correct Answer Land Development Banks

Your Answer      Regional Rural Banks


Multiple Choice Single Answer
Question        Zero Coupon Bonds are issued at a : -

Correct Answer Discount to face value

Your Answer      Discount to face value


True/False
Question         NABARD provides Refinance for Marketing of Crops.

Correct Answer True

Your Answer      False


True/False
Question         The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer      False


Multiple Choice Multiple Answer
Question        Soft Loan Scheme for modernisation is provided by :-

Correct Answer IFCI , ICICI , SIDBI

Your Answer      ICICI


True/False
Question       In case of T-Bills potential investors have to put in competitive
               bids.
Correct Answer True

Your Answer      True


Match The Following
Question                  Correct Answer              Your Answer

Development financial     IFCI                        IFCI
institutions
Organised sector            Banking System          Banking System

Unorganised sector          Indigenous banks        Indigenous banks

Mutual funds                UTI                     UTI


True/False
Question       Non bank financial institutions undertake fund and non fund
               based activities.
Correct Answer True

Your Answer        True


Multiple Choice Single Answer
Question        Instruments issued by DFIs and Banks carry :-

Correct Answer Highest credit ratings

Your Answer        Highest credit ratings


Multiple Choice Single Answer
Question        For a focus on the SSI Sector in 1986 IDBI created :-

Correct Answer SIDF

Your Answer        SIDF


True/False
Question       Amongst others, ICICI also provided long and medium term
               loans or equity finance.
Correct Answer True

Your Answer        True


Select The Blank
Question        Interest on advances is generally calculated on ________
                products.
Correct Answer Daily

Your Answer        Fortnightly


Select The Blank
Question        The ________ has been accredited by RBI as a Primary Dealer
                in Governemt Securities.
Correct Answer STCI
Your Answer      GIC


Select The Blank
Question        ________ is merely an asset created out of book entries.

Correct Answer SDR

Your Answer      SDR


Multiple Choice Single Answer
Question        Development Financial Institutions provide finance to the needy

Correct Answer Corporates & govt. institutions

Your Answer      Corporates & govt. institutions
              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question        SIDBI provides :-

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer      Refinance , Rediscounting of Bills , Financial support to SSIDC


True/False
Question       NABARD does not provide Refinance for stocking & distribution
               of Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        Which of the following services is not provided by Commercial
                banks?
Correct Answer Deposit Insurance

Your Answer      Deposit Insurance


Multiple Choice Single Answer
Question        IDBI has helped in the establishment of :-

Correct Answer EXIM Bank

Your Answer      IFCI


Select The Blank
Question        DFIs are the second largest issuer of ________ after the Govt
                and Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
Question         A Cheque is a Negotiable Instrument.

Correct Answer True

Your Answer      True


True/False
Question         State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer      True


Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-

Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services
Your Answer    Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services

True/False
Question       Development financial institutions primarily lend to Agriculture
               sector.
Correct Answer False

Your Answer      False


True/False
Question         Banks do not invest in the GOI securities .

Correct Answer False

Your Answer      False


Select The Blank
Question        NABARDs Criteria for Refinance covers Technical ________ of
                the project.
Correct Answer Feasibility

Your Answer      Feasibility


True/False
Question       IMF discourages excessive use of its resources by imposing a
               surcharge on large loans.
Correct Answer True

Your Answer      True


Select The Blank
Question        As a banker to the Government, RBI accepts Government
                deposits at ________% interest.
Correct Answer 0
Your Answer      0


Select The Blank
Question        HDFCs loans were linked up with________.

Correct Answer Planned Savings

Your Answer      Planned Savings


Multiple Choice Multiple Answer
Question        Other than Tourism, International funds remittances comprise of
                :-
Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty

Your Answer      Donations/Charity , Payments of Royalty


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer      Power


Multiple Choice Single Answer
Question        A major part of the credit of SFCs went to :-

Correct Answer SSI units

Your Answer      SSI units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer      Over one year


Select The Blank
Question        In addition to IFCI and ________ the Soft Loan Scheme for
                modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer      ICICI


True/False
Question         A Bill of Exchange is negotiable.
Correct Answer True

Your Answer      True


Select The Blank
Question        NHB at present has a ________ Capital of Rs. 350 crores.

Correct Answer Paid-up

Your Answer      Paid-up


Select The Blank
Question        The term ________ refers to the act of a bank extending finance
                to the seller against a letter of credit.
Correct Answer Negotiation

Your Answer      Negotiation


True/False
Question       Under MIGA the World bank offers various forms of Political
               Insurance.
Correct Answer True

Your Answer      True


Select The Blank
Question        The loans under________ are based on Poverty Reduction
                Strategy Paper.
Correct Answer PRGF

Your Answer      PRGF


Multiple Choice Multiple Answer
Question        The general insurance business can be :-

Correct Answer Marine insurance , Fire insurance , Miscellaneous

Your Answer      Marine insurance , Fire insurance , Miscellaneous


Multiple Choice Single Answer
Question        FIs can be classified into two categories depending on the basis
                of incorporation and :-
Correct Answer Operation

Your Answer      Size


Multiple Choice Multiple Answer
Question         The main objective of ICICI was :-

Correct Answer To augment export finance in India , To channelise World
               Bank's funds to industries in India , To help in building up a
               Capital Market in India
Your Answer    To augment export finance in India , To help in building up a
               Capital Market in India , To aid Rural Development in India

Multiple Choice Single Answer
Question        SIDCs & SIICs give loans ,guarantees & : -

Correct Answer Lease finance

Your Answer      Lease finance


Multiple Choice Single Answer
Question        Commercial Papers are issued by :-

Correct Answer Corporates

Your Answer      Corporates


True/False
Question         SCICI is a member of the OTCEI.

Correct Answer True

Your Answer      True


Select The Blank
Question        The extent of powers enjoyed by a branch depends on the size
                of its ________.
Correct Answer Business

Your Answer      Business


True/False
Question         Gramin banks are State Owned Banks.

Correct Answer True

Your Answer      False


True/False
Question         NIDHIS are Trading Organisations.

Correct Answer False
Your Answer       True


Multiple Choice Single Answer
Question        Corporate Debentures are :-

Correct Answer Long term debt instruments

Your Answer       Long term debt instruments


Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer       Credit report , Banker's report , Confidential report


Match The Following
Question                   Correct Answer               Your Answer

Largest borrower in the    IBRD                         IBRD
world
International Monetary     IMF                          IMF
Cooperation
Prevention of crises       CCL                          CCL

Political insurance        MIGA                         MIGA


Multiple Choice Single Answer
Question        The apex institution in the field of Industrial Development is :-

Correct Answer IDBI

Your Answer       IDBI


Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the year
                :-
Correct Answer 1965

Your Answer       1965


Select The Blank
Question        Development financial institutions have been established to
                cater to ________ of the industrial sector.
Correct Answer Long term financial needs
Your Answer      Long term financial needs


Select The Blank
Question        The ________ was set up to help corrections in BOP
                maladjustments.
Correct Answer IMF

Your Answer      UNO


Multiple Choice Multiple Answer
Question        A member's IMF Quota determines its :-

Correct Answer Financial commitment , Voting power , Drawing power

Your Answer      Financial commitment , Voting power , Drawing power


Multiple Choice Multiple Answer
Question        Functions of R.O. of a bank include :-

Correct Answer Inspection/audit , Control on branches , Grant loans/advances

Your Answer      Control on branches , Grant loans/advances , Pay interest on
                 deposits

Multiple Choice Single Answer
Question        IDBI introduced Automatic Refinance Scheme in the year :-

Correct Answer 1978

Your Answer      1975


Select The Blank
Question        The ________ is the apex institution in the field of foreign trade
                in India.
Correct Answer EXIM bank

Your Answer      EXIM bank


Multiple Choice Multiple Answer
Question        SFCs provide finance to :-

Correct Answer Corporates , Partnerships , Proprietary firms

Your Answer      Corporates , Partnerships , Proprietary firms


Match The Following
Question                     Correct Answer              Your Answer

Aquaculture ,Brackish        Fisheries                   Fisheries
Water
Ploughing, weeding,          Seasonal Agricultural       Irrigation & Drainage
transplantation              Operations
Market Yards, Storage & Agricultural Marketing           Agricultural Marketing
Warehousing
Hill ,Tribal Area            Area Development            Area Development
development

Multiple Choice Multiple Answer
Question        The financial Assistance provided by the IMF enables member
                countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer         Rebuild resources , Stabilise currencies , Pay for imports
              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question       NABARD provides short term refinance for procurement
               activities also.
Correct Answer True

Your Answer      True


Multiple Choice Multiple Answer
Question        Tourism promotes :-

Correct Answer Credit Card Business , International remittances , Travellers'
               Cheques
Your Answer    Credit Card Business , International remittances , Travellers'
               Cheques

True/False
Question         HDFC was set up by NHB.

Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        IMF articles were amended in 1978 to legalise the :-

Correct Answer Floating exchange rates

Your Answer      Special drawing rights


Select The Blank
Question        Syndication involves ________ sanction.

Correct Answer In principle

Your Answer      In principle


Multiple Choice Single Answer
Question        The organised financial system includes :-

Correct Answer Commercial banks

Your Answer      Commercial banks


Match The Following
Question                     Correct Answer             Your Answer

CRR                          Primary reserve            Prevention of speculative
                             requirement                hoarding in
Bankers Bank                 Controlling the reserves of Controlling the reserves of
                             commercial banks            commercial banks
Exchange control             FEMA                       FEMA

OMO                          Government securities      Secondary reserve
                                                        requirement

Multiple Choice Multiple Answer
Question        The prominent Bond issuing PSU are :-

Correct Answer MTNL , NTPC , SAIL

Your Answer        MTNL , NTPC , SAIL


Select The Blank
Question        The Premium of ________ is obtained through obligatory
                reinsurance premium.
Correct Answer GIC

Your Answer        GIC


Select The Blank
Question        The ________ does not collect Savings from the Public.

Correct Answer NIICO Ltd.

Your Answer        NIICO Ltd.


Multiple Choice Single Answer
Question        Development Financial institutions include :-

Correct Answer State financial institutions

Your Answer        State financial institutions


Match The Following
Question                     Correct Answer             Your Answer

Money Market                 CP, T- Bills               CP, T- Bills
Instruments
Negotaible Instruments       Bills of exchange          Bills of exchange
                             ,Cheques                   ,Cheques
GOI securities            ZCB, ILBonds                ZCB, ILBonds

Long Term Debt            PSU Bonds                   PSU Bonds
instruments

Select The Blank
Question        NABARD took over the functions of ACD, RPCC of RBI &
                ________.
Correct Answer ARDC

Your Answer      ARDC


Select The Blank
Question        The price in financial markets is known as ________.

Correct Answer Rate of interest

Your Answer      Rate of interest


True/False
Question         Banks lend to corporates directly.

Correct Answer True

Your Answer      True


True/False
Question       Banks authorised to deal in foreign exchange are known as
               Authorised Dealers.
Correct Answer False

Your Answer      False


True/False
Question       Under open market operation RBI conducts buying /selling
               shares/debentures of blue chip companies.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        Initial Quantum of resources of IMF were contributed by
                members according to :-
Correct Answer Quotas fixed for members

Your Answer      Quotas fixed for members
Multiple Choice Single Answer
Question        The ultimate source of money in India is:-

Correct Answer RBI

Your Answer      RBI


Multiple Choice Multiple Answer
Question        ECGC Board comprises of Directors representing :-

Correct Answer Government , Banking/Insurance , Trade/Industry

Your Answer      Government


Multiple Choice Single Answer
Question        A record of the holdings of GOI dated securities of each holder
                is contained in :-
Correct Answer SGL pass book

Your Answer      SGL pass book


Multiple Choice Multiple Answer
Question        Which of the following statements are not prepared on a daily
                basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer      Cash Book , Trial Balance , P/L statement


Multiple Choice Single Answer
Question        Size of the Quota depended upon :-

Correct Answer GNP

Your Answer      GNP


Multiple Choice Multiple Answer
Question        DICGC does not insure the deposits :-

Correct Answer Of foreign Governments , Of State Cooperative Banks , Of the
               Central Government
Your Answer    Of foreign Governments , Of State Cooperative Banks , Of the
               Central Government

Select The Blank
Question        Financial markets are the centres that provide facilities for
                buying and selling of ________.
Correct Answer Financial claims and services

Your Answer      Goods and services


Multiple Choice Multiple Answer
Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Regional /Sectoral planning , Benchmark Surveys , Pre-
               feasibility studies
Your Answer    Pre-feasibility studies , Regional /Sectoral planning , Benchmark
               Surveys

Select The Blank
Question        In a Bank, the investment decisions are taken at ________
                level.
Correct Answer Head Office

Your Answer      Head Office


True/False
Question         The SFCs also borrow from SIDBI & IDBI.

Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        IRBI was set up with a focus on :-

Correct Answer Sick Units

Your Answer      Sick Units


Multiple Choice Single Answer
Question        SFCs suffer from a very high ratio of: -

Correct Answer Overdues

Your Answer      Overdues


Multiple Choice Multiple Answer
Question        Functions of NIDHIs include :-

Correct Answer Accepting Deposits , Granting loans , Encourage thrift

Your Answer      Accepting Deposits , Granting loans , Speculation


Multiple Choice Multiple Answer
Question          R B I conducts monetary control by way of O M O in :-

Correct Answer Treasury bills , State /central Government Securities

Your Answer       Treasury bills , State /central Government Securities


Multiple Choice Single Answer
Question        The foreign currency account maintained by an authorised
                dealer with its correspondent abroad is :-
Correct Answer Nostro Account

Your Answer       Nostro Account


Select The Blank
Question        Mutual Funds provide the benefits of ________.

Correct Answer Portfolio management

Your Answer       Bulk investment


Select The Blank
Question        An ________ letter of credit cannot be canceled by the buyer
                without the seller's consent.
Correct Answer Irrevocable

Your Answer       Irrevocable


Multiple Choice Single Answer
Question        The primary sources of IMF resources are :-

Correct Answer Quotas

Your Answer       Quotas


Multiple Choice Multiple Answer
Question        The unorganised financial system comprises of :-

Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers

Your Answer       Indigenous bankers


Multiple Choice Single Answer
Question        The first long term industrial financing corporation set up in the
                country was :-
Correct Answer IFCI

Your Answer       IFCI
Select The Blank
Question        The HDFC was set up in 1977 by the ________.

Correct Answer ICICI

Your Answer       ICICI


Multiple Choice Single Answer
Question        One of the leading All India FI is :-

Correct Answer SIDBI

Your Answer       LIC


True/False
Question       Small Savings are source of Capital Receipts for the
               Government.
Correct Answer True

Your Answer       True


True/False
Question          The overdraft facility is also known as Cash credit facility.

Correct Answer True

Your Answer       False


Multiple Choice Single Answer
Question        RBI was established under the:-

Correct Answer RBI Act

Your Answer       RBI Act


Multiple Choice Multiple Answer
Question        Duties of an International Banking unit cover :-

Correct Answer Handling foreign currency , Handling Doc. credits , Granting
               lines of Credit
Your Answer    Handling foreign currency , Handling Doc. credits , Granting
               lines of Credit

True/False
Question          The currency notes issued by RBI are legal tender everywhere
                  in India without any limit.
Correct Answer True

Your Answer      False


Multiple Choice Multiple Answer
Question        Post Offices are popular for mobilizing small savings of the
                public due to :-
Correct Answer Wide network , Tax concessions , Saftey of funds

Your Answer      Low returns , Wide network , Saftey of funds


Multiple Choice Multiple Answer
Question        Bonds issued by institutions through SPVs to execute
                infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
                Ltd
Your Answer     MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
                Ltd
             LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional
               /Sectoral planning
Your Answer    Benchmark Surveys , Pre-feasibility studies , Regional
               /Sectoral planning

Multiple Choice Multiple Answer
Question        Duties of an International Banking unit cover :-

Correct Answer Handling foreign currency , Handling Doc. credits , Granting
               lines of Credit
Your Answer    Handling foreign currency , Handling Doc. credits , Granting
               lines of Credit

Select The Blank
Question        The ________ is the apex institution in the field of foreign
                trade in India.
Correct Answer EXIM bank

Your Answer      FEDAI


True/False
Question         The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer      True


True/False
Question       NABARD does not provide Refinance for stocking &
               distribution of Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer      Power


True/False
Question         NABARD is an apex institution in the field of Integrated Rural
                 Development.
Correct Answer True

Your Answer      False


Match The Following
Question                  Correct Answer            Your Answer

Insurance of all          Group Insurance           Group Insurance
employees of a Firm
Premium Throughout Life Whole Life                  Whole Life

Fixed Period Insurance    Endowment                 Endowment

Insurance of ocean        Marine Insurance          Marine Insurance
Cargo

Select The Blank
Question        DFIs are the second largest issuer of ________ after the
                Govt and Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
 Question        Mortgage Loans are loans against property.

Correct Answer True

Your Answer      True


Select The Blank
Question        An ________ letter of credit cannot be canceled by the buyer
                without the seller's consent.
Correct Answer Irrevocable

Your Answer      Revocable


Multiple Choice Single Answer
Question        Liabilities of Insurance Cos are mostly :-

Correct Answer Long term

Your Answer      Long term


Select The Blank
Question        As a banker to the Government, RBI accepts Government
                deposits at ________% interest.
Correct Answer 0

Your Answer       0.05


Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the
                year :-
Correct Answer 1965

Your Answer       1975


Multiple Choice Single Answer
Question        DFHI was incorporated under the :-

Correct Answer Companies Act, 1956

Your Answer       Banking Regulation Act,1949


Multiple Choice Single Answer
Question        The underdeveloped markets are characterised by :-

Correct Answer Government regulation and control

Your Answer       Government regulation and control


Multiple Choice Single Answer
Question        Financial institutions deal in :-

Correct Answer Financial assets

Your Answer       Financial assets


Multiple Choice Single Answer
Question        The first development Bank of India, established in 1948 was
                :-
Correct Answer IFCI

Your Answer       IFCI


True/False
Question       Non bank financial institutions undertake fund and non fund
               based activities.
Correct Answer True

Your Answer       True


Multiple Choice Multiple Answer
Question       Under Project Finance Scheme IDBI provides assistance for
               :-
Correct Answer New Projects , Renovation , Modernisation

Your Answer      New Projects , Renovation , Modernisation


True/False
Question         SCICI is a member of the OTCEI.

Correct Answer True

Your Answer      True


Select The Blank
Question        The ________ does not collect Savings from the Public.

Correct Answer NIICO Ltd.

Your Answer      NIICO Ltd.


Multiple Choice Single Answer
Question        IRBI was set up with a focus on :-

Correct Answer Sick Units

Your Answer      Sick Units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer      Over three years


Multiple Choice Multiple Answer
Question        Which of the following statements are not prepared on a daily
                basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer      Audited Balance Sheet , Trial Balance , P/L statement


True/False
Question         Banks lend to corporates directly.

Correct Answer True

Your Answer      True
True/False
Question       Small Savings are source of Capital Receipts for the
               Government.
Correct Answer True

Your Answer       False


Multiple Choice Single Answer
Question        Treasury Bills are issued by the :-

Correct Answer RBI

Your Answer       RBI


Multiple Choice Single Answer
Question        Account where lump sum investment is made for specific
                period is :-
Correct Answer Term Deposit account

Your Answer       Term Deposit account


Multiple Choice Single Answer
Question        The apex institution in the field of foreign trade in India is :-

Correct Answer EXIM Bank

Your Answer       EXIM Bank


Multiple Choice Multiple Answer
Question        Basic Life insurance policies include :-

Correct Answer Term insurance , Annuity contracts , Pension plans

Your Answer       Term insurance , Annuity contracts , Pension plans


Select The Blank
Question        In addition to IFCI and ________ the Soft Loan Scheme for
                modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer       ICICI


Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-

Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
                 Consultancy & managerial services

Your Answer      Lease or hire purchase finance , Consultancy & managerial
                 services , Rural credit activities

Select The Blank
Question        Syndication of Loans Globally does not involve any funds as
                it is ________ activity.
Correct Answer Non-fund based

Your Answer      Non-fund based


Multiple Choice Multiple Answer
Question        Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer      Sponsor , Trust , Asset Management company


Select The Blank
Question        ________ is merely an asset created out of book entries.

Correct Answer SDR

Your Answer      EFF


Multiple Choice Multiple Answer
Question        SFCs provide finance to :-

Correct Answer Corporates , Partnerships , Proprietary firms

Your Answer      Corporates , Partnerships , Proprietary firms


Multiple Choice Single Answer
Question        The type of banking involving a small number of Large
                Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking

Your Answer      Global Banking


Select The Blank
Question        The extent of powers enjoyed by a branch depends on the
                size of its ________.
Correct Answer Business

Your Answer      Business
Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer      Credit report , Banker's report , Confidential report


Match The Following
Question                 Correct Answer              Your Answer

Inter Bank Call Money    BRs, Call Money             Currencies
Markets                  Receipts
Money Market             CP, CD ,T- Bills            CP, CD ,T- Bills
Instuments
Capital Market           Shares                      Shares
Instruments
Debt Market Instruments GOI Securities ,Bonds        Shares


Select The Blank
Question        55% of HUDCO loans are earmarked for________& low
                income groups.
Correct Answer Weaker sections

Your Answer      Weaker sections


True/False
Question       Banks authorised to deal in foreign exchange are known as
               Authorised Dealers.
Correct Answer False

Your Answer      False


Multiple Choice Multiple Answer
Question        The financial Assistance provided by the IMF enables
                member countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer      Rebuild resources , Stabilise currencies , Pay for imports


Select The Blank
Question        The repayment holiday period is also known as ________
                period.
Correct Answer Moratorium

Your Answer      Moratorium
 Multiple Choice Single Answer
 Question        A non-scheduled bank does not deal in :-

 Correct Answer Foreign Exchange

 Your Answer       Foreign Exchange


 Multiple Choice Multiple Answer
 Question        Prominent Institutional Investors are :-

 Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

 Your Answer       Foreign Investors(FIIs) , Corporate Treasuries , Public sector
                   Companies

              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question        SIDBI provides :-

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer      Refinance , Rediscounting of Bills , Financial support to SSIDC


True/False
Question       NABARD does not provide Refinance for stocking & distribution
               of Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        Which of the following services is not provided by Commercial
                banks?
Correct Answer Deposit Insurance

Your Answer      Deposit Insurance


Multiple Choice Single Answer
Question        IDBI has helped in the establishment of :-

Correct Answer EXIM Bank

Your Answer      IFCI


Select The Blank
Question       DFIs are the second largest issuer of ________ after the Govt
               and Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
Question         A Cheque is a Negotiable Instrument.

Correct Answer True

Your Answer      True


True/False
Question         State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer      True


Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-

Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services
Your Answer    Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services

True/False
Question       Development financial institutions primarily lend to Agriculture
               sector.
Correct Answer False

Your Answer      False


True/False
Question         Banks do not invest in the GOI securities .

Correct Answer False

Your Answer      False


Select The Blank
Question        NABARDs Criteria for Refinance covers Technical ________ of
                the project.
Correct Answer Feasibility

Your Answer      Feasibility
True/False
Question       IMF discourages excessive use of its resources by imposing a
               surcharge on large loans.
Correct Answer True

Your Answer      True


Select The Blank
Question        As a banker to the Government, RBI accepts Government
                deposits at ________% interest.
Correct Answer 0

Your Answer      0


Select The Blank
Question        HDFCs loans were linked up with________.

Correct Answer Planned Savings

Your Answer      Planned Savings


Multiple Choice Multiple Answer
Question        Other than Tourism, International funds remittances comprise of
                :-
Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty

Your Answer      Donations/Charity , Payments of Royalty


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer      Power


Multiple Choice Single Answer
Question        A major part of the credit of SFCs went to :-

Correct Answer SSI units

Your Answer      SSI units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year
Your Answer      Over one year


Select The Blank
Question        In addition to IFCI and ________ the Soft Loan Scheme for
                modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer      ICICI


True/False
Question         A Bill of Exchange is negotiable.

Correct Answer True

Your Answer      True


Select The Blank
Question        NHB at present has a ________ Capital of Rs. 350 crores.

Correct Answer Paid-up

Your Answer      Paid-up


Select The Blank
Question        The term ________ refers to the act of a bank extending finance
                to the seller against a letter of credit.
Correct Answer Negotiation

Your Answer      Negotiation


True/False
Question       Under MIGA the World bank offers various forms of Political
               Insurance.
Correct Answer True

Your Answer      True


Select The Blank
Question        The loans under________ are based on Poverty Reduction
                Strategy Paper.
Correct Answer PRGF

Your Answer      PRGF


Multiple Choice Multiple Answer
Question        The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous

Your Answer      Marine insurance , Fire insurance , Miscellaneous


Multiple Choice Single Answer
Question        FIs can be classified into two categories depending on the basis
                of incorporation and :-
Correct Answer Operation

Your Answer      Size


Multiple Choice Multiple Answer
Question        The main objective of ICICI was :-

Correct Answer To augment export finance in India , To channelise World
               Bank's funds to industries in India , To help in building up a
               Capital Market in India
Your Answer    To augment export finance in India , To help in building up a
               Capital Market in India , To aid Rural Development in India

Multiple Choice Single Answer
Question        SIDCs & SIICs give loans ,guarantees & :-

Correct Answer Lease finance

Your Answer      Lease finance


Multiple Choice Single Answer
Question        Commercial Papers are issued by :-

Correct Answer Corporates

Your Answer      Corporates


True/False
Question         SCICI is a member of the OTCEI.

Correct Answer True

Your Answer      True


Select The Blank
Question        The extent of powers enjoyed by a branch depends on the size
                of its ________.
Correct Answer Business

Your Answer      Business
True/False
Question          Gramin banks are State Owned Banks.

Correct Answer True

Your Answer       False


True/False
Question          NIDHIS are Trading Organisations.

Correct Answer False

Your Answer       True


Multiple Choice Single Answer
Question        Corporate Debentures are :-

Correct Answer Long term debt instruments

Your Answer       Long term debt instruments


Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer       Credit report , Banker's report , Confidential report


Match The Following
Question                   Correct Answer               Your Answer

Largest borrower in the    IBRD                         IBRD
world
International Monetary     IMF                          IMF
Cooperation
Prevention of crises       CCL                          CCL

Political insurance        MIGA                         MIGA


Multiple Choice Single Answer
Question        The apex institution in the field of Industrial Development is :-

Correct Answer IDBI

Your Answer       IDBI
Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the year
                :-
Correct Answer 1965

Your Answer       1965


Select The Blank
Question        Development financial institutions have been established to
                cater to ________ of the industrial sector.
Correct Answer Long term financial needs

Your Answer       Long term financial needs


Select The Blank
Question        The ________ was set up to help corrections in BOP
                maladjustments.
Correct Answer IMF

Your Answer       UNO


Multiple Choice Multiple Answer
Question        A member's IMF Quota determines its :-

Correct Answer Financial commitment , Voting power , Drawing power

Your Answer       Financial commitment , Voting power , Drawing power


Multiple Choice Multiple Answer
Question        Functions of R.O. of a bank include :-

Correct Answer Inspection/audit , Control on branches , Grant loans/advances

Your Answer       Control on branches , Grant loans/advances , Pay interest on
                  deposits

Multiple Choice Single Answer
Question        IDBI introduced Automatic Refinance Scheme in the year :-

Correct Answer 1978

Your Answer       1975


Select The Blank
Question        The ________ is the apex institution in the field of foreign trade
                in India.
     Correct Answer EXIM bank

     Your Answer         EXIM bank


     Multiple Choice Multiple Answer
     Question        SFCs provide finance to :-

     Correct Answer Corporates , Partnerships , Proprietary firms

     Your Answer         Corporates , Partnerships , Proprietary firms


     Match The Following
     Question                     Correct Answer              Your Answer

     Aquaculture ,Brackish        Fisheries                   Fisheries
     Water
     Ploughing, weeding,          Seasonal Agricultural       Irrigation & Drainage
     transplantation              Operations
     Market Yards, Storage & Agricultural Marketing           Agricultural Marketing
     Warehousing
     Hill ,Tribal Area            Area Development            Area Development
     development

     Multiple Choice Multiple Answer
     Question        The financial Assistance provided by the IMF enables member
                     countries to :-
     Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

     Your Answer         Rebuild resources , Stabilise currencies , Pay for imports


Multiple Choice Multiple Answer
Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning

Your Answer        Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning


Multiple Choice Multiple Answer
Question        Duties of an International Banking unit cover :-

Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit

Your Answer        Handling foreign currency , Handling Doc. credits , Granting lines of Credit


Select The Blank
Question        The ________ is the apex institution in the field of foreign trade in India.
Correct Answer EXIM bank

Your Answer      FEDAI


True/False
Question         The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer      True


True/False
Question       NABARD does not provide Refinance for stocking & distribution of
               Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer      Power


True/False
Question       NABARD is an apex institution in the field of Integrated Rural
               Development.
Correct Answer True

Your Answer      False


Match The Following
Question                     Correct Answer                Your Answer

Insurance of all employees of Group Insurance              Group Insurance
a Firm
Premium Throughout Life      Whole Life                    Whole Life

Fixed Period Insurance       Endowment                     Endowment

Insurance of ocean Cargo     Marine Insurance              Marine Insurance


Select The Blank
Question        DFIs are the second largest issuer of ________ after the Govt and
                Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
Question         Mortgage Loans are loans against property.

Correct Answer True

Your Answer      True


Select The Blank
Question        An ________ letter of credit cannot be canceled by the buyer without the
                seller's consent.
Correct Answer Irrevocable

Your Answer      Revocable


Multiple Choice Single Answer
Question        Liabilities of Insurance Cos are mostly :-

Correct Answer Long term

Your Answer      Long term


Select The Blank
Question        As a banker to the Government, RBI accepts Government deposits at
                ________% interest.
Correct Answer 0

Your Answer      0.05


Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the year :-

Correct Answer 1965

Your Answer      1975


Multiple Choice Single Answer
Question        DFHI was incorporated under the :-

Correct Answer Companies Act, 1956

Your Answer      Banking Regulation Act,1949


Multiple Choice Single Answer
Question          The underdeveloped markets are characterised by :-

Correct Answer Government regulation and control

Your Answer       Government regulation and control


Multiple Choice Single Answer
Question        Financial institutions deal in :-

Correct Answer Financial assets

Your Answer       Financial assets


Multiple Choice Single Answer
Question        The first development Bank of India, established in 1948 was :-

Correct Answer IFCI

Your Answer       IFCI


True/False
Question       Non bank financial institutions undertake fund and non fund based
               activities.
Correct Answer True

Your Answer       True


Multiple Choice Multiple Answer
Question        Under Project Finance Scheme IDBI provides assistance for :-

Correct Answer New Projects , Renovation , Modernisation

Your Answer       New Projects , Renovation , Modernisation


True/False
Question          SCICI is a member of the OTCEI.

Correct Answer True

Your Answer       True


Select The Blank
Question        The ________ does not collect Savings from the Public.

Correct Answer NIICO Ltd.

Your Answer       NIICO Ltd.
Multiple Choice Single Answer
Question        IRBI was set up with a focus on :-

Correct Answer Sick Units

Your Answer      Sick Units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer      Over three years


Multiple Choice Multiple Answer
Question        Which of the following statements are not prepared on a daily basis in
                branch?
Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer      Audited Balance Sheet , Trial Balance , P/L statement


True/False
Question         Banks lend to corporates directly.

Correct Answer True

Your Answer      True


True/False
Question         Small Savings are source of Capital Receipts for the Government.

Correct Answer True

Your Answer      False


Multiple Choice Single Answer
Question        Treasury Bills are issued by the :-

Correct Answer RBI

Your Answer      RBI


Multiple Choice Single Answer
Question        Account where lump sum investment is made for specific period is :-

Correct Answer Term Deposit account
Your Answer       Term Deposit account


Multiple Choice Single Answer
Question        The apex institution in the field of foreign trade in India is :-

Correct Answer EXIM Bank

Your Answer       EXIM Bank


Multiple Choice Multiple Answer
Question        Basic Life insurance policies include :-

Correct Answer Term insurance , Annuity contracts , Pension plans

Your Answer       Term insurance , Annuity contracts , Pension plans


Select The Blank
Question        In addition to IFCI and ________ the Soft Loan Scheme for modernisation
                is also undertaken by IDBI.
Correct Answer ICICI

Your Answer       ICICI


Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-

Correct Answer Merchant Banking activities , Lease or hire purchase finance , Consultancy
               & managerial services
Your Answer    Lease or hire purchase finance , Consultancy & managerial services ,
               Rural credit activities

Select The Blank
Question        Syndication of Loans Globally does not involve any funds as it is ________
                activity.
Correct Answer Non-fund based

Your Answer       Non-fund based


Multiple Choice Multiple Answer
Question        Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer       Sponsor , Trust , Asset Management company


Select The Blank
Question        ________ is merely an asset created out of book entries.
Correct Answer SDR

Your Answer      EFF


Multiple Choice Multiple Answer
Question        SFCs provide finance to :-

Correct Answer Corporates , Partnerships , Proprietary firms

Your Answer      Corporates , Partnerships , Proprietary firms


Multiple Choice Single Answer
Question        The type of banking involving a small number of Large Customers
                viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking

Your Answer      Global Banking


Select The Blank
Question        The extent of powers enjoyed by a branch depends on the size of its
                ________.
Correct Answer Business

Your Answer      Business


Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer      Credit report , Banker's report , Confidential report


Match The Following
Question                      Correct Answer                  Your Answer

Inter Bank Call Money         BRs, Call Money Receipts        Currencies
Markets
Money Market Instuments       CP, CD ,T- Bills                CP, CD ,T- Bills

Capital Market Instruments    Shares                          Shares

Debt Market Instruments       GOI Securities ,Bonds           Shares


Select The Blank
Question        55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections

Your Answer      Weaker sections


True/False
Question       Banks authorised to deal in foreign exchange are known as Authorised
               Dealers.
Correct Answer False

Your Answer      False


Multiple Choice Multiple Answer
Question        The financial Assistance provided by the IMF enables member countries to
                :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer      Rebuild resources , Stabilise currencies , Pay for imports


Select The Blank
Question        The repayment holiday period is also known as ________ period.

Correct Answer Moratorium

Your Answer      Moratorium


Multiple Choice Single Answer
Question        A non-scheduled bank does not deal in :-

Correct Answer Foreign Exchange

Your Answer      Foreign Exchange


Multiple Choice Multiple Answer
Question        Prominent Institutional Investors are :-

Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Your Answer      Foreign Investors(FIIs) , Corporate Treasuries , Public sector Companies
              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank
Question        The Shipping Credit and Investment Company of India Ltd. has
                changed its name to ________ effective from October 1992.
Correct Answer SCICI Ltd

Your Answer      SCICI Ltd


Multiple Choice Multiple Answer
Question        IFC provides financial assistance :-

Correct Answer Through loans , Through purchase of shares , For economic
               development
Your Answer    Largely as aid , Through loans


Select The Blank
Question        Period of Holiday Insurance is ________.

Correct Answer Six months or less

Your Answer      Six months or less


Multiple Choice Multiple Answer
Question        From time to time RBI has issued :-

Correct Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
               bonds
Your Answer    Straight coupon bonds , Inflation linked bonds , Zero coupon
               bonds

Multiple Choice Multiple Answer
Question        R B I issues currency notes against the security of:-

Correct Answer Gold bullion , Foreign securities , GOI securities

Your Answer      Gold bullion , Foreign securities , GOI securities


Multiple Choice Single Answer
Question        The type of banking involving a small number of Large
                Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking

Your Answer      Wholesale Banking
True/False
Question       NABARD is an apex institution in the field of Integrated Rural
               Development.
Correct Answer True

Your Answer       True


Select The Blank
Question        The ________ are buy and hold investors and almost never
                trade on their investments.
Correct Answer Provident Funds

Your Answer       Mutual Funds


Multiple Choice Multiple Answer
Question        Under Project Finance Scheme IDBI provides assistance for :-

Correct Answer New Projects , Renovation , Modernisation

Your Answer       New Projects , Renovation , Modernisation


Multiple Choice Multiple Answer
Question        In case of a Life policy it is possible to withdraw from the
                obligation to contribute further premium by :-
Correct Answer Surrendering the policy , Converting it into paid up policy ,
                Assigning it in the open market
Your Answer     Surrendering the policy , Converting it into paid up policy ,
                Assigning it in the open market

Multiple Choice Multiple Answer
Question        IDA lends to poor countries :-

Correct Answer By lending at 0% interest. , For periods up to ten years , By
               borrowing from IBRD
Your Answer    By borrowing from IBRD , By lending at 0% interest. , For
               periods up to ten years

Multiple Choice Single Answer
Question        Financial institutions deal in :-

Correct Answer Financial assets

Your Answer       Financial assets


Multiple Choice Multiple Answer
Question        Functions of a Bank's H.O. include:-

Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer      Liaison with RBI , Evolve Policies , Vigilance & Control


Multiple Choice Single Answer
Question        Treasury bills are issued by :-

Correct Answer RBI

Your Answer      RBI


True/False
Question         The bids for T-Bills are on price/interest basis.

Correct Answer True

Your Answer      True


True/False
Question         No TDS is deducted on Interest paid on CDs.

Correct Answer True

Your Answer      True


Multiple Choice Single Answer
Question        The underdeveloped markets are characterised by :-

Correct Answer Government regulation and control

Your Answer      Government regulation and control


Multiple Choice Multiple Answer
Question        Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer      Sponsor , Trust , Asset Management company


Multiple Choice Multiple Answer
Question        Prominent Institutional Investors are :-

Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Your Answer      Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds


Multiple Choice Single Answer
Question        A record of the holdings of GOI dated securities of each holder
                is contained in :-
Correct Answer SGL pass book

Your Answer       SGL pass book


Multiple Choice Single Answer
Question        The unorganised financial system includes :-

Correct Answer Indigenous bankers

Your Answer       Indigenous bankers


Multiple Choice Single Answer
Question        SIDCs & SIICs are under the control of :-

Correct Answer State Governments

Your Answer       State Governments


True/False
Question       PFC has been persuading State Governments restructuring of
               their power sector to make them viable.
Correct Answer True

Your Answer       True


Match The Following
Question                   Correct Answer           Your Answer

Advances                   Loans/cash credits       Loans/cash credits

Cash withdrawal facility   ATM                      ATM

Remittances                MT/DD/TT/EFT             MT/DD/TT/EFT

Government business        Collection of taxes      Collection of taxes


Select The Blank
Question        GIC raises funds to meet claims from ________.

Correct Answer Premium collected

Your Answer       Premium collected


Select The Blank
Question        The CRAFICARD recommended the establishment of
                ________.
Correct Answer NABARD

Your Answer      NABARD


Multiple Choice Multiple Answer
Question        The objective NEF Scheme of SIDBI is to provide equity support
                to :-
Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing
                units in tiny & small scale sector
Your Answer     New Units in tiny Sector , New Units in Small Sector , Existing
                units in tiny & small scale sector

Multiple Choice Single Answer
Question        Which of the following institution was set up as a subsidy of RBI
                in 1964?
Correct Answer IDBI

Your Answer      IDBI


Select The Blank
Question        Kisan Vikas Patra are issued through ________.

Correct Answer Post Offices

Your Answer      Post Offices


Multiple Choice Single Answer
Question        DFHI was incorporated under the :-

Correct Answer Companies Act, 1956

Your Answer      Companies Act, 1956


Multiple Choice Single Answer
Question        Which one of the following is not a deposit account?

Correct Answer Cash Credit account

Your Answer      Cash Certificate


True/False
Question       CP is a usance promissory note hence it can be negotiated by
               endorsement & delivery.
Correct Answer True

Your Answer      False
Select The Blank
Question        The ________ meet the long and medium term credit needs of
                agriculture.
Correct Answer Land Development Banks

Your Answer      Regional Rural Banks


Multiple Choice Single Answer
Question        Zero Coupon Bonds are issued at a : -

Correct Answer Discount to face value

Your Answer      Discount to face value


True/False
Question         NABARD provides Refinance for Marketing of Crops.

Correct Answer True

Your Answer      False


True/False
Question         The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer      False


Multiple Choice Multiple Answer
Question        Soft Loan Scheme for modernisation is provided by :-

Correct Answer IFCI , ICICI , SIDBI

Your Answer      ICICI


True/False
Question       In case of T-Bills potential investors have to put in competitive
               bids.
Correct Answer True

Your Answer      True


Match The Following
Question                  Correct Answer              Your Answer

Development financial     IFCI                        IFCI
institutions
Organised sector            Banking System          Banking System

Unorganised sector          Indigenous banks        Indigenous banks

Mutual funds                UTI                     UTI


True/False
Question       Non bank financial institutions undertake fund and non fund
               based activities.
Correct Answer True

Your Answer        True


Multiple Choice Single Answer
Question        Instruments issued by DFIs and Banks carry :-

Correct Answer Highest credit ratings

Your Answer        Highest credit ratings


Multiple Choice Single Answer
Question        For a focus on the SSI Sector in 1986 IDBI created :-

Correct Answer SIDF

Your Answer        SIDF


True/False
Question       Amongst others, ICICI also provided long and medium term
               loans or equity finance.
Correct Answer True

Your Answer        True


Select The Blank
Question        Interest on advances is generally calculated on ________
                products.
Correct Answer Daily

Your Answer        Fortnightly


Select The Blank
Question        The ________ has been accredited by RBI as a Primary Dealer
                in Governemt Securities.
Correct Answer STCI
Your Answer      GIC


Select The Blank
Question        ________ is merely an asset created out of book entries.

Correct Answer SDR

Your Answer      SDR


Multiple Choice Single Answer
Question        Development Financial Institutions provide finance to the needy

Correct Answer Corporates & govt. institutions

Your Answer      Corporates & govt. institutions


              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question       NABARD provides short term refinance for procurement
               activities also.
Correct Answer True

Your Answer      True


Multiple Choice Multiple Answer
Question        Tourism promotes :-

Correct Answer Credit Card Business , International remittances , Travellers'
               Cheques
Your Answer    Credit Card Business , International remittances , Travellers'
               Cheques

True/False
Question         HDFC was set up by NHB.

Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        IMF articles were amended in 1978 to legalise the :-

Correct Answer Floating exchange rates

Your Answer      Special drawing rights
Select The Blank
Question        Syndication involves ________ sanction.

Correct Answer In principle

Your Answer        In principle


Multiple Choice Single Answer
Question        The organised financial system includes :-

Correct Answer Commercial banks

Your Answer        Commercial banks


Match The Following
Question                     Correct Answer             Your Answer

CRR                          Primary reserve            Prevention of speculative
                             requirement                hoarding in
Bankers Bank                 Controlling the reserves of Controlling the reserves of
                             commercial banks            commercial banks
Exchange control             FEMA                       FEMA

OMO                          Government securities      Secondary reserve
                                                        requirement

Multiple Choice Multiple Answer
Question        The prominent Bond issuing PSU are :-

Correct Answer MTNL , NTPC , SAIL

Your Answer        MTNL , NTPC , SAIL


Select The Blank
Question        The Premium of ________ is obtained through obligatory
                reinsurance premium.
Correct Answer GIC

Your Answer        GIC


Select The Blank
Question        The ________ does not collect Savings from the Public.

Correct Answer NIICO Ltd.

Your Answer        NIICO Ltd.
Multiple Choice Single Answer
Question        Development Financial institutions include :-

Correct Answer State financial institutions

Your Answer      State financial institutions


Match The Following
Question                   Correct Answer             Your Answer

Money Market               CP, T- Bills               CP, T- Bills
Instruments
Negotaible Instruments     Bills of exchange          Bills of exchange
                           ,Cheques                   ,Cheques
GOI securities             ZCB, ILBonds               ZCB, ILBonds

Long Term Debt             PSU Bonds                  PSU Bonds
instruments

Select The Blank
Question        NABARD took over the functions of ACD, RPCC of RBI &
                ________.
Correct Answer ARDC

Your Answer      ARDC


Select The Blank
Question        The price in financial markets is known as ________.

Correct Answer Rate of interest

Your Answer      Rate of interest


True/False
Question         Banks lend to corporates directly.

Correct Answer True

Your Answer      True


True/False
Question       Banks authorised to deal in foreign exchange are known as
               Authorised Dealers.
Correct Answer False

Your Answer      False
True/False
Question       Under open market operation RBI conducts buying /selling
               shares/debentures of blue chip companies.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        Initial Quantum of resources of IMF were contributed by
                members according to :-
Correct Answer Quotas fixed for members

Your Answer      Quotas fixed for members


Multiple Choice Single Answer
Question        The ultimate source of money in India is:-

Correct Answer RBI

Your Answer      RBI


Multiple Choice Multiple Answer
Question        ECGC Board comprises of Directors representing :-

Correct Answer Government , Banking/Insurance , Trade/Industry

Your Answer      Government


Multiple Choice Single Answer
Question        A record of the holdings of GOI dated securities of each holder
                is contained in :-
Correct Answer SGL pass book

Your Answer      SGL pass book


Multiple Choice Multiple Answer
Question        Which of the following statements are not prepared on a daily
                basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer      Cash Book , Trial Balance , P/L statement


Multiple Choice Single Answer
Question        Size of the Quota depended upon :-

Correct Answer GNP
Your Answer       GNP


Multiple Choice Multiple Answer
Question        DICGC does not insure the deposits :-

Correct Answer Of foreign Governments , Of State Cooperative Banks , Of the
               Central Government
Your Answer    Of foreign Governments , Of State Cooperative Banks , Of the
               Central Government

Select The Blank
Question        Financial markets are the centres that provide facilities for
                buying and selling of ________.
Correct Answer Financial claims and services

Your Answer       Goods and services


Multiple Choice Multiple Answer
Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Regional /Sectoral planning , Benchmark Surveys , Pre-
               feasibility studies
Your Answer    Pre-feasibility studies , Regional /Sectoral planning , Benchmark
               Surveys

Select The Blank
Question        In a Bank, the investment decisions are taken at ________
                level.
Correct Answer Head Office

Your Answer       Head Office


True/False
Question          The SFCs also borrow from SIDBI & IDBI.

Correct Answer False

Your Answer       False


Multiple Choice Single Answer
Question        IRBI was set up with a focus on :-

Correct Answer Sick Units

Your Answer       Sick Units


Multiple Choice Single Answer
Question        SFCs suffer from a very high ratio of: -
Correct Answer Overdues

Your Answer      Overdues


Multiple Choice Multiple Answer
Question        Functions of NIDHIs include :-

Correct Answer Accepting Deposits , Granting loans , Encourage thrift

Your Answer      Accepting Deposits , Granting loans , Speculation


Multiple Choice Multiple Answer
Question        R B I conducts monetary control by way of O M O in :-

Correct Answer Treasury bills , State /central Government Securities

Your Answer      Treasury bills , State /central Government Securities


Multiple Choice Single Answer
Question        The foreign currency account maintained by an authorised
                dealer with its correspondent abroad is :-
Correct Answer Nostro Account

Your Answer      Nostro Account


Select The Blank
Question        Mutual Funds provide the benefits of ________.

Correct Answer Portfolio management

Your Answer      Bulk investment


Select The Blank
Question        An ________ letter of credit cannot be canceled by the buyer
                without the seller's consent.
Correct Answer Irrevocable

Your Answer      Irrevocable


Multiple Choice Single Answer
Question        The primary sources of IMF resources are :-

Correct Answer Quotas

Your Answer      Quotas


Multiple Choice Multiple Answer
Question          The unorganised financial system comprises of :-

Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers

Your Answer       Indigenous bankers


Multiple Choice Single Answer
Question        The first long term industrial financing corporation set up in the
                country was :-
Correct Answer IFCI

Your Answer       IFCI


Select The Blank
Question        The HDFC was set up in 1977 by the ________.

Correct Answer ICICI

Your Answer       ICICI


Multiple Choice Single Answer
Question        One of the leading All India FI is :-

Correct Answer SIDBI

Your Answer       LIC


True/False
Question       Small Savings are source of Capital Receipts for the
               Government.
Correct Answer True

Your Answer       True


True/False
Question          The overdraft facility is also known as Cash credit facility.

Correct Answer True

Your Answer       False


Multiple Choice Single Answer
Question        RBI was established under the:-

Correct Answer RBI Act

Your Answer       RBI Act
Multiple Choice Multiple Answer
Question        Duties of an International Banking unit cover :-

Correct Answer Handling foreign currency , Handling Doc. credits , Granting
               lines of Credit
Your Answer    Handling foreign currency , Handling Doc. credits , Granting
               lines of Credit

True/False
Question       The currency notes issued by RBI are legal tender everywhere
               in India without any limit.
Correct Answer True

Your Answer      False


Multiple Choice Multiple Answer
Question        Post Offices are popular for mobilizing small savings of the
                public due to :-
Correct Answer Wide network , Tax concessions , Saftey of funds

Your Answer      Low returns , Wide network , Saftey of funds


Multiple Choice Multiple Answer
Question        Bonds issued by institutions through SPVs to execute
                infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
                Ltd
Your Answer     MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
                Ltd

              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question        SIDBI provides :-

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer      Refinance , Rediscounting of Bills , Financial support to SSIDC


True/False
Question       NABARD does not provide Refinance for stocking & distribution
               of Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question       Which of the following services is not provided by Commercial
               banks?
Correct Answer Deposit Insurance

Your Answer      Deposit Insurance


Multiple Choice Single Answer
Question        IDBI has helped in the establishment of :-

Correct Answer EXIM Bank

Your Answer      IFCI


Select The Blank
Question        DFIs are the second largest issuer of ________ after the Govt
                and Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
Question         A Cheque is a Negotiable Instrument.

Correct Answer True

Your Answer      True


True/False
Question         State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer      True


Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-

Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services
Your Answer    Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services

True/False
Question       Development financial institutions primarily lend to Agriculture
               sector.
Correct Answer False

Your Answer      False
True/False
Question         Banks do not invest in the GOI securities .

Correct Answer False

Your Answer      False


Select The Blank
Question        NABARDs Criteria for Refinance covers Technical ________ of
                the project.
Correct Answer Feasibility

Your Answer      Feasibility


True/False
Question       IMF discourages excessive use of its resources by imposing a
               surcharge on large loans.
Correct Answer True

Your Answer      True


Select The Blank
Question        As a banker to the Government, RBI accepts Government
                deposits at ________% interest.
Correct Answer 0

Your Answer      0


Select The Blank
Question        HDFCs loans were linked up with________.

Correct Answer Planned Savings

Your Answer      Planned Savings


Multiple Choice Multiple Answer
Question        Other than Tourism, International funds remittances comprise of
                :-
Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty

Your Answer      Donations/Charity , Payments of Royalty


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power
Your Answer      Power


Multiple Choice Single Answer
Question        A major part of the credit of SFCs went to :-

Correct Answer SSI units

Your Answer      SSI units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer      Over one year


Select The Blank
Question        In addition to IFCI and ________ the Soft Loan Scheme for
                modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer      ICICI


True/False
Question         A Bill of Exchange is negotiable.

Correct Answer True

Your Answer      True


Select The Blank
Question        NHB at present has a ________ Capital of Rs. 350 crores.

Correct Answer Paid-up

Your Answer      Paid-up


Select The Blank
Question        The term ________ refers to the act of a bank extending finance
                to the seller against a letter of credit.
Correct Answer Negotiation

Your Answer      Negotiation


True/False
Question         Under MIGA the World bank offers various forms of Political
                 Insurance.

Correct Answer True

Your Answer      True


Select The Blank
Question        The loans under________ are based on Poverty Reduction
                Strategy Paper.
Correct Answer PRGF

Your Answer      PRGF


Multiple Choice Multiple Answer
Question        The general insurance business can be :-

Correct Answer Marine insurance , Fire insurance , Miscellaneous

Your Answer      Marine insurance , Fire insurance , Miscellaneous


Multiple Choice Single Answer
Question        FIs can be classified into two categories depending on the basis
                of incorporation and :-
Correct Answer Operation

Your Answer      Size


Multiple Choice Multiple Answer
Question        The main objective of ICICI was :-

Correct Answer To augment export finance in India , To channelise World
               Bank's funds to industries in India , To help in building up a
               Capital Market in India
Your Answer    To augment export finance in India , To help in building up a
               Capital Market in India , To aid Rural Development in India

Multiple Choice Single Answer
Question        SIDCs & SIICs give loans ,guarantees & : -

Correct Answer Lease finance

Your Answer      Lease finance


Multiple Choice Single Answer
Question        Commercial Papers are issued by :-

Correct Answer Corporates
Your Answer      Corporates


True/False
Question         SCICI is a member of the OTCEI.

Correct Answer True

Your Answer      True


Select The Blank
Question        The extent of powers enjoyed by a branch depends on the size
                of its ________.
Correct Answer Business

Your Answer      Business


True/False
Question         Gramin banks are State Owned Banks.

Correct Answer True

Your Answer      False


True/False
Question         NIDHIS are Trading Organisations.

Correct Answer False

Your Answer      True


Multiple Choice Single Answer
Question        Corporate Debentures are :-

Correct Answer Long term debt instruments

Your Answer      Long term debt instruments


Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer      Credit report , Banker's report , Confidential report


Match The Following
Question                   Correct Answer              Your Answer

Largest borrower in the    IBRD                        IBRD
world
International Monetary     IMF                         IMF
Cooperation
Prevention of crises       CCL                         CCL

Political insurance        MIGA                        MIGA


Multiple Choice Single Answer
Question        The apex institution in the field of Industrial Development is :-

Correct Answer IDBI

Your Answer       IDBI


Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the year
                :-
Correct Answer 1965

Your Answer       1965


Select The Blank
Question        Development financial institutions have been established to
                cater to ________ of the industrial sector.
Correct Answer Long term financial needs

Your Answer       Long term financial needs


Select The Blank
Question        The ________ was set up to help corrections in BOP
                maladjustments.
Correct Answer IMF

Your Answer       UNO


Multiple Choice Multiple Answer
Question        A member's IMF Quota determines its :-

Correct Answer Financial commitment , Voting power , Drawing power

Your Answer       Financial commitment , Voting power , Drawing power


Multiple Choice Multiple Answer
    Question            Functions of R.O. of a bank include :-

    Correct Answer Inspection/audit , Control on branches , Grant loans/advances

    Your Answer         Control on branches , Grant loans/advances , Pay interest on
                        deposits

    Multiple Choice Single Answer
    Question        IDBI introduced Automatic Refinance Scheme in the year :-

    Correct Answer 1978

    Your Answer         1975


    Select The Blank
    Question        The ________ is the apex institution in the field of foreign trade
                    in India.
    Correct Answer EXIM bank

    Your Answer         EXIM bank


    Multiple Choice Multiple Answer
    Question        SFCs provide finance to :-

    Correct Answer Corporates , Partnerships , Proprietary firms

    Your Answer         Corporates , Partnerships , Proprietary firms


    Match The Following
    Question                     Correct Answer              Your Answer

    Aquaculture ,Brackish        Fisheries                   Fisheries
    Water
    Ploughing, weeding,          Seasonal Agricultural       Irrigation & Drainage
    transplantation              Operations
    Market Yards, Storage & Agricultural Marketing           Agricultural Marketing
    Warehousing
    Hill ,Tribal Area            Area Development            Area Development
    development

    Multiple Choice Multiple Answer
    Question        The financial Assistance provided by the IMF enables member
                    countries to :-
    Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

    Your Answer         Rebuild resources , Stabilise currencies , Pay for imports

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market is the :-
Correct Answer RBI
Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
 Correct Answer Financial
 Your Answer Financial

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
 Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

True/False
 Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
 Question The SFCs also borrow from SIDBI & IDBI.
 Correct Answer False
 Your Answer True

Multiple Choice Single Answer
 Question RBI was established under the:-
 Correct Answer RBI Act
 Your Answer RBI Act

Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government regulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
 Question The bids for T-Bills are on price/interest basis.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

 True/False
  Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
  Correct Answer False
  Your Answer False

Multiple Choice Multiple Answer
 Question The unorganised financial system comprises of :-
 Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
 Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
 Correct Answer True
 Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt

True/False
 Question A Bill of Exchange is negotiable.
 Correct Answer True
 Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF

True/False
 Question Issuance of CD attracts reserve requirements.
 Correct Answer False
 Your Answer False

True/False
 Question Banks issue Guarantees on behalf of their clients.
 Correct Answer True
 Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


True/False
 Question Under MIGA the World bank offers various forms of Political Insurance.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
  Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market

Multiple Choice Single Answer
 Question The organised financial system includes :-
 Correct Answer Commercial banks
 Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected

Multiple Choice Multiple Answer
Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

 Multiple Choice Multiple Answer
 Question Under Project Finance Scheme IDBI provides assistance for :-
 Correct Answer New Projects , Renovation , Modernisation
 Your Answer New Projects , Renovation , Modernisation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market is the :-
Correct Answer RBI
 Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
 Correct Answer Financial
 Your Answer Financial

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
 Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

True/False
 Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
 Question The SFCs also borrow from SIDBI & IDBI.
 Correct Answer False
 Your Answer True

Multiple Choice Single Answer
Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
 Question The underdeveloped markets are characterised by :-
 Correct Answer Government regulation and control
 Your Answer Government regulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
 Question The bids for T-Bills are on price/interest basis.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

 True/False
  Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
  Correct Answer False
  Your Answer False

Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
 Correct Answer True
 Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
 Question Money Markets Instruments have a maturity of less than :-
 Correct Answer One year
 Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt

True/False
 Question A Bill of Exchange is negotiable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF
True/False
 Question Issuance of CD attracts reserve requirements.
 Correct Answer False
 Your Answer False

True/False
 Question Banks issue Guarantees on behalf of their clients.
 Correct Answer True
 Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


True/False
 Question Under MIGA the World bank offers various forms of Political Insurance.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
  Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market

Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected

Multiple Choice Multiple Answer
Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market! is the :-
Correct Answer RBI
Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.
 Correct Answer Financial
 Your Answer Financial

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up
to ten years
  Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

 True/False
 Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

 Multiple Choice Multiple Answer
 Question The major area of AFC's specialisation included Crop Production as well a!
s:-
 Correct Answer Crop Planning , Plant Protection , Farm Management
 Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
 Question The underdeveloped markets are characterised by :-
 Correct Answer Government regulation and control
 Your Answer Government reg! ulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer

can be :-
 Correct Answer Marine insurance , Fire insurance , Miscellaneous
 Your Answer Fire insurance , Miscellaneous , Marine insurance

True/False
 Question NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
 Correct Answer False
 Your Answer False

Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
&nbs! p; Correct Answer True
 Your Answer True
Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.
Correct Answer &n! bsp; Rate of interest
Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt

True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

 Multiple Choice Single Answer
  Question A current account where the customer can withdraw more than the balance is
:-
  Correct Answer Overdraft
  Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
 Question For a focus on the SSI Sector in 1986 IDBI created :-
&n! bsp; Correct Answer SIDF
 Your Answer SIDF

True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False

True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
  Question In case of a Life policy it is possible to withdraw from the obligation to
contribute further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning
it in the open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market

Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the seller
against a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

 Multiple Choice Multiple Answer
 Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :-
 Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
 Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
 Question GIC raises funds to meet claims from ________.
 Correct Answer Premium collected
 Your Answer Premium collected
!
Multiple Choice Multiple Answer
 Question Treasuries could be either those of the :-
 Correct Answer PSUs , Private Sector Cos. , Govt.bodies
 Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
 Your Answer New Projects , Renovation , Modernisation

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market is the :-
Correct Answer RBI
Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
 Correct Answer Financial
 Your Answer Financial

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
 Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost
True/False
 Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
 Question The SFCs also borrow from SIDBI & IDBI.
 Correct Answer False
 Your Answer True

Multiple Choice Single Answer
Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Draw ing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government regulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
 Question The bids for T-Bills are on price/interest basis.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers
Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

 True/False
  Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
  Correct Answer False
  Your Answer False

Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
 Correct Answer True
 Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank
 Question The price in financial markets is known as ________.
 Correct Answer Rate of interest
 Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI
Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt

True/False
 Question A Bill of Exchange is negotiable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF

True/False
 Question Issuance of CD attracts reserve requirements.
 Correct Answer False
 Your Answer False

True/False
 Question Banks issue Guarantees on behalf of their clients.
 Correct Answer True
 Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives


True/False
 Question Under MIGA the World bank offers various forms of Political Insurance.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
  Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market

Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected

Multiple Choice Multiple Answer
Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
Financial Institution and Banking

Topic                                                               PageNo
organised sector                                                          2
financial services                                                        2
Indian financial system                                                   3
commercial banks                                                          4
development financial institutions                                        5
insurance companies                                                       5
other public sector financial institutions                                5
post office savings                                                       5
mutual funds                                                              5
non banking finanical institutions                                        6
Reserve bank of India                                                     9
functions of RBI                                                          9
banker to the government                                                 10
bankers bank                                                             10
supervising authority                                                    10
exchange control authority                                               10
promoter of financial system                                             11
fiscal and monetary policy                                               12
open market operations                                                   12
developmental financial institutions                                     17
industrial finance corporation of India                                  17
Industrial development bank of india - idbi                              18
industrial credit and investment corporation of india Ltd - icici        19
irbi                                                                     20
sfcs                                                                     20
sidc and siics                                                           20
state small industries development corporation (SSIDC)                   21
power finance corporation (PFC)                                          21
financial services offered by the corporation                            21
term loans                                                               21
lease financing                                                          22
direct discounting of bills                                              22
guarantee services                                                       22
loan syndication                                                         22
short term loan                                                          22
institutional development services                                       22
utility development plans                                                23
financial assistance for power sector studies                            23
reform and restructuring related studies                                 23
reform and restructuring of SEBs                                         23
OFAP                                                                     23
export import bank of india                                              24
national bank of agriculture and rural development                       24
genesis of NABARD                                               24
ARC                                                             24
GOI                                                             24
ACD                                                             24
CRAFICARD                                                       24
types of refinance facilities                                   26
interest rates                                                  26
production credits                                              28
financing weavers                                               28
OSAO                                                            29
refinance for marketing of crops                                29
other refinance facilities                                      30
long term loans to state governments                            30
investment credit ( medium and long term) refinance             31
shipping credit and investment company of India (SCICI)         33
principal activities                                            33
agricultural finance consultancy ltd (AFC)                      34
area of specialisation                                          36
surveys and studies                                             38
National co-operative development corporation (NCDC)            38
finance and financing                                           39
procedure of santion / disbursal of assistance                  40
promotional and development role                                40
marketing                                                       40
agricultural inputs                                             40
agro-processing industries                                      41
storage and cold storage                                        41
program for weaker sections                                     41
consumer business                                               41
area based integrated co-operative development project          42
national housing bank (NHB)                                     42
housing and urban development corporation (HUDCO)               44
housing development finance corporation (HDFC)                  44
land development banks                                          45
banking sector                                                  49
retail banking                                                  49
cash credit                                                     50
safe custody services for safe keeping of important documents   50
acceptance of deposits from non resident indians                51
difference between retail banking and wholesale banking         51
global banking                                                  51
scheduled bank in india                                         52
commercial bank and cooperative bank                            52
public sector banks                                             52
private sector banks                                            52
bank accounts                                                   53
deposit account                                                 53
lump sum investment                                                   54
periodic investment                                                   54
cash credit                                                           54
loan syndication                                                      54
repayment period                                                      54
bill                                                                  55
discount                                                              55
remittance                                                            55
letter of credit                                                      55
bank guarantee                                                        56
negotiation                                                           56
cash reserve ratio                                                    56
statutory reserve ratio                                               57
note pertaining to reserve ratio                                      57
clearing operation                                                    57
daily product basis                                                   57
monthly product basis                                                 58
repayment holiday                                                     58
credit instruments                                                    59
negotiable instruments                                                59
acceptance                                                            59
credit report                                                         59
syndication                                                           59
custodial services                                                    60
security                                                              60
foreign exchange                                                      60
securitisation                                                        60
international banking                                                 60
international trade                                                   61
tourism                                                               61
remittance of funds from one place to another place besides tourism   61
syndication of loans global for corporate houses                      61
foreign exchange management                                           62
profile of a bank                                                     62
branch banking                                                        62
different layers of banking                                           62
duties of an international banking department                         63
exchange operations                                                   63
administrative functions in a bank                                    63
administrative units                                                  64
banking business                                                      65
Deposit insurance and credit guarantee corporation (DICGC)            66
export credit guarantee corporation (ECGC)                            67
indian money market                                                   73
instrument                                                            73
comercial paper                                                       74
certificates of deposit                                               75
treasury bills                                                  75
short term debentures                                           75
bill of exchange                                                75
long term debt instruments                                      76
government of India dated securities (GOISEC)                   76
inflation linked bonds                                          77
zero coupon bonds                                               77
state government securities (state loans)                       78
public sector undertaking bonds (PSU Bonds)                     78
bonds of public financial institutions (PFI)                    78
corporate debentures                                            79
Pass through certificates (PTC)                                 79
issuers                                                         79
government of India and other sovereign bodies                  80
banks and development financial institutions                    80
public sector undertaking (PSU )                                81
private sector companies                                        81
government owned or quasi governement non corporate entities    82
investors                                                       82
banks                                                           83
insurance companies                                             84
provident funds                                                 84
mutual funds                                                    86
trusts                                                          86
corporate treasuries                                            87
foreign institutional investors                                 87
securities trading corporation of india (STCI)                  88
discount and finance house of india                             88
non banking financial intermediaries                            93
LIC                                                             93
general nature of insurance companies                           93
instroduction of Life Insurance corporations                    93
types and structure of insurance plans                          94
general insurance corporation                                   96
unit trust of india                                             98
provident / pension funds                                       99
post offices                                                    99
Non bank financial companies (NBFC)                             99
investment companies                                           100
loan companies                                                 102
chit funds                                                     102
NIDHIS                                                         103
hire purchase finance companies                                104
equipment leasing finance companies                            104
international monetary fund (IMF)                              109
quotas                                                         109
concessional and non concessional lending                      113
poverty reduction and growth facility (PRGF)                   113
stand by arrangments (SBA)                                     114
extended fund facility (EFF)                                   114
supplement reserve facility (SRF)                              114
contingent credit lines (CCL)                                  114
compensatory financing facility (CFF)                          114
emergency assistance                                           114
special drawing rights                                         114
the international bank for reconstruction and development      115
world bank                                                     115
international finance corporation                              115
international development assiciation (IDA)                    116
the bank for international settlements                         116
regional development agencies                                  116
RBI                                                            119
non performing assets                                          120
out of order status                                            121
overdue                                                        121
income recognition                                             121
reversal of income                                             122
appropriation of recovery in NPA                               122
NPA                                                            122
sub standard Assets                                            123
subtful assets                                                 124
loss assets                                                    124
account with temporary deficiancies                            124
upgradation of loan accounts classified as NPA                 125
account regularised near about the balance sheet date          125
agricultural advances                                          126
government guaranteed advances                                 128
restructuring rescheduling of loans                            128
upgradation of restructured accounts                           130
corporate debt restructuring (CDR systems)                     131
CDR                                                            131
stand still clause                                             138
category 2 CDR system                                          139
projects under implementation                                  142
assest classification                                          142
income recognition                                             144
provisioning                                                   145
availability of security / net worth of borrower / guarantor   145
take-out finance                                               145
post shipment supplier credit                                  145
export project finance                                         146
advances under rehabiliation approved by BIFR/TLI              146
provisioning norms general                                     146
sub standard Assets                                            148
leased assets                                                           148
advances                                                                150
advances covered by CGTSI guarantee                                     151
take-out finance                                                        152
reserve for exchange rate fluctuations account (RERFA)                  152
country risk                                                            153
securitisation company (SC) / reconstruction company (RC)               154
writing off of NPA                                                      155
direct finance to farmers for agricultural purposes                     156
purchase of agricultural implements and machinery                       156
development of irrigation potential through                             156
lending to priority sector                                              158
priority sector advances                                                161
direct finance to farmers for agricultural purposes                     161
indirect finance to agriculture                                         163
small scale and ancillary industries                                    166
tiny enterprises                                                        166
small scale service and business enterprises(SSSBE)                     166
industrial estates                                                      167
KVI sector                                                              167
small road and water transport operators (SRWTO)                        167
retail trade                                                            168
small business                                                          168
professional and self emplyed persons                                   168
state sponsored organisations for scheduled castes / scheduled tribes   169
education                                                               170
housing                                                                 170
compsumption loans                                                      170
loans to self help groups (SHG)/NGO/MICROEDIT                           170
food and agro based processing sector                                   171
software industry                                                       171
venture capital                                                         171
investments in special bonds                                            173
HUDCO                                                                   174
NSIC                                                                    174
NHB                                                                     174
lines of credit                                                         174
bills rediscounting                                                     175
deposits in rural infrastructure development (RIDF)                     175
leasing and hire purchase                                               175
targets for priority sector lending by scheduled commercial bank s      177
scheduled commercial banks excluding foreign banks                      177
direct / indirect agricultural lending                                  177
small scale industries                                                  178
DRI advances                                                            178
Weaker sections                                                         178
Targets for foreign banks                                               178
rural infrastructure developments fund (RIDF )                        180
common guidelines for priority sector advances                        183
application forms                                                     183
mode of disbursement of loan                                          184
repayment schedule                                                    184
rates of interest                                                     184
penal interest                                                        185
inspection charges                                                    185
insurance against fire and other risks                                185
other charges                                                         186
photographs of borrowers                                              186
discretionary powers                                                  186
machinery to look into complants                                      186
amendments                                                            186
Chapter – 1 : Overview of Financial markets Meaning and scope                    1–5
Following groups; organized sector and unorganized sector ; financial services
Financial systems commercial banks ; development financial institutions ;
insurance companies ; other public sector financial institutions ; post office
savings bank ; national bank for agriculture and rural development ; Mutual
funds ; non – banking financial institutions
Chapter – 2 Reserve bank of India – The main functions of RBI are ; Note         9 – 12
issuing authority ; banker to the Government ; Bankers’ Bank ; Supervising
authority ; Exchange control Authority ; Promoter of Financial System ; Fiscal
and Monetary policy ; open market operations ;
Chapter – 3 – Development Financial Institutions – Introduction ; Industrial     17 – 21
Finance Corporation of India ; Industrial development bank of India ;
Industrial credit and investment corporation of India ltd., The purpose IRBI ;
SFCs ; The SIDCs and SIICs ; Functions ; state small industries development
corporations (SSIDCs) Power Finance Corporation (PFC) Financial Services
Offered by the Corporation ; Lease Financing – Direct Discounting of Bills;;
Guarantee Services; Loan Syndication ; short term loan ;
Institutional Development Services                                               22 - 31
Acting as an instrument for ushering in reforms in the state utilities both
financial and technical ; utility development plans ; Financial Assistance for
power sector studies ; Reform & Restructuring related studies ; Reforms &
Restructuring of SEBs ; Export import bank of India ; National Bank for
agriculture and rural development ; Genesis of NABARD
Types of refinance facilities ; interest rates ; production credits ; Other
refinance facilities ; investment credit (Medium and long term) Refinance
Shipping credit and investment company of India (SCICI)                          33 – 37
Agricultural Finance Consultancy Ltd (AFC)
Membership ; Organization ; Services ; Area of specialization ; surveys &
studies ; crop production ; Forestry ; Irrigation & Drainage ; Agricultural
Engineering ; Horticulture & Plantation ; Fisheries ; Livestock & Dairy ;
Agricultural & Livestock Marketing ; Agri-Business & Agro-Industries ; Area
Development Planning ; Agricultural & Rural Credit ; Project Formulation &
Appraisal ; Institution Building ;
Social Sector Development ; Remote Sensing Application & Resources                   38 – 41
Management Centre ; Training & Manpower Development ; Rural
Infrastructure ; Surveys and Studies ; National Co-operative Development
Corporation (NCDC) ; Genesis ; Functions ; Organization and Management ;
Finance and Financing ; Purposes for which assistance is provided ; Procedure
of sanction / disbursal of assistance ; Promotional and development role ;
Activities and program ; Marketing ; Agricultural inputs ; Agro- Processing
industries ; Sugar ; Spinning Mill ; Others ; Storage and Cold Storage ; Storage
; Cold Storage ; Program for weaker sections ; Consumer business
Are based integrated co-operative development project ; National housing bank        42 – 45
(NHB) Role and functions in Housing sector ; Role NHB; Housing and urban
development corporation (HUDCO); Housing development finance
corporation (HDFC) ; land development banks ;
Chapter - 4 – Banking Sector – What is bank and what is banking Extending            49 – 51
financial assistance to exports on soft terms ; safe custody services for safe
keeping of important documents ; acceptance of deposits from non-resident
Indians ; difference between retail banking and wholesale banking
What is a schedule bank in India ; What is the difference between a                  52 – 53
commercial bank and a co-operative bank ; different bank accounts – deposit ;
deposit account without withdrawals facility – different categories ;
Different bank accounts – advances and loans ; cash credit loan ; repayment          54 – 58
period ; banking terms often used / common banking practices ; discount ;
remittance ; letter of credit ; advantage ; Bank guarantee ; example of financial
guarantee example of performance guarantee ; letters of credit and bank
guarantees play a very important role in international banking statutory
Reserve ratio ; Note pertaining to reserve ratio ; clearing operation ; daily
product basis ; repayment holiday
Credit instruments ; Negotiable instruments ; acceptance ; credit report ;           59 -61
syndication ; custodial service ; security ; foreign exchange ; securitization ;
international banking internal trade tourism ; remittance of funds from one
place to another place besides tourism / international trade ; Syndication of
loans globally for corporate houses ;
Accessing international market for equity / borrowing in the form of ADR /           62 – 63
GDR and Ero Bonds Etc., Foreign exchange management ; profile of a bank
different layers of banking operations in India in general ; what are the duties
of an international banking department? Exchange operations administrative
functions in a bank ; different administrative units in a bank
Typical functions of different administration units of a bank ; at the head office   64 – 68
level ; banking business vs. other business ; deposit insurance and credit
guarantee corporation (DICGC) ; Export credit guarantee corporation (ECGC)
Chapter – 5 Indian Money Market – Indian Money Market ; instruments ;                73 – 77
Money market instruments ; commercial paper (CP) certificates of deposit
(CD) ; Treasury Bills (T – Bills); long term debt instruments ; government of
India dated securities (GOISECs) ; New types of Goisecs ;
State government securities (State Loans) ; Public Sector Undertaking Bonds          78 - 83
(PSU Bonds ) ; Bonds of public financial institutions (PFIs) Corporate
debentures ; Pass Through Certificates (PTSs) Issuers ; Government of India
and other sovereign bodies ; Banks and development financial instructions ;
public sector undertaking (PSUs) private sector companies ; Government
owned or quasi government non corporate entities ; investors ; banks ; banks ;
Insurance companies ; provident funds ; Several factors have contributed to the     84 – 89
growth of PFs in India ; Mutual funds ; trusts ; corporate treasuries ; foreign
instructional investors ; securities trading corporation of India ltd., (STCI) ;
discount and finance house of India;
Chapter – 6 – Non Banking Financial intermediaries                                  93 - 97
LIC ; General Nature of Insurance Companies ; Introduction of Life Insurance
Corporations ; Types and structure of insurance plans ; valuation of life policy
; growth of life business and fund ; investment pattern and policy ; general
insurance corporation ; organization ; types and structure of business; income
and investment pattern
Unit trust of India and other mutual funds ; provident / pension funds; post        98-101
offices ; other non-bank financial companies’ (NBFCs) ; Investment
companies ;
Loans companies chit funds ; nidhis functions ; accepting deposits loan and         102 – 105
advances ; other aspects ; Hire – purchase finance companies ; functions ;
installment – credit ; financing of purchase of equipment, vehicles etc. ;
purchase of old assets ; consumer credit ; equipment leasing finance
companies;
Chapter – 7 ; International Financing agencies – International monetary Fund        109 – 113
(IMF) ; Funding facilities ; Schemes of the IMF funding ; concessional and
non-concessional lending ; IMF Facilities ;
poverty reduction and growth facility ; stand – by arrangement ; extended fund      114 – 117
facility ; supplemental reserve facility ; contingent credit lines ; compensatory
financing facility ; emergency assistance ; special drawing rights ; the
international bank for reconstruction and development ; international finance
corporation ; 1956; international development association ; the bank for
international settlements ; regional development agencies ; European bank for
reconstruction and development;
Important regulatory instructions issued by the RBI ; contents ; general ;          119 – 123
definitions ; non – performing assets ; year ending march 31 specified period ;
out of order status ; overdue ; income recognition ; income recognitions ;
income recognition – policy ; reversal of income this will apply to government
guaranteed accounts also ; appropriation of recovery in NPAs ; interest
application ; reporting of NPAs; Asset classification ; categories of NPAs ; sub
– standard assets ; NPA for a period less than or equal to 18 months ;
Guidance note on asset classifications ; provisioning norms ; doubtful assets       124 – 125
loss assets ; guidelines for classification off assets ; accounts with temporary
deficiencies ; up gradation of loan accounts classified as NPAs ; Accounts
regularized near about the balance sheet date ;
Asset classification to be borrower – wise and not facility wise ; ; advances       126-127
under consortium arrangements ; record of recovery of the individual member;
accounts where there is a erosion in the value of security ; advances to
PACs/FSS ceded to commercial banks ; advances against term deposits NSC’s
KVP / IVP ; loans with moratorium for payment of interest ; agricultural
advances;
Government guaranteed advances ; restructuring of loans ; upgradation of             128- 134
restructured accounts; general ; corporate debt restructuring (CDR System)
Background ; objective structure CDR system in the country will have a three
tier structure ; cdr standing forum and its core group ; cdr empowered group ;
cdr cell ;
Other features ; eligibility criteria ; reference to CDR system ; legal basis ;      135 – 140
stand – still clause ; additional finance ; exit option ; conversion option ;
category 2 cdr system ; accounting treatment for restructured accounts ;
Disclosure ; implementation of the revised guidelines ; projects under               141 – 145
implementation ; asset classification ; category II ; category III ; income
recognition ; provisioning ; availability of security / net worth of borrower /
guarantor ; take – out finance ; post – shipment supplier’s credit
Export project finance ; advances under rehabilitation approved by BIFR / RLI        146 – 149
; provisioning norms general ; loss assets ; doubtful assets ; period for which
the advance has been considered as doubtful ; provisions requirement ;
valuation of security for provisioning purposes ; sub-standard assets ; standard
assets ; floating provisions ; provisions on leased assets sub – standard assets ;
doubtful assets ; period age provisions loss assets ; loss assets ; guidelines for
provisions under special circumstances ; government guaranteed advances
Advances granted under rehabilitation packages approved by BIFR / term               150 – 153
lending institutions ; treatment of interest suspense account ; Advances
covered by ECG / DICGC guarantee ; advance covered by CGTSI guarantee ;
Take out finance ; reserve for exchange rate fluctuations account (RERFA) ;
Provisioning for country risk ; Risk category ; ECGC classification ;
Provisioning requirement (per cent)
Provisioning norms for sale of financial assets to securitization company (SC) /     154-156
Reconstruction company (RC) ; writing off of NPAs
Annexure – II Revelant extract of the list of direct agricultural advances from
the Master Circular on lending to priority sector – RPCD. Plan.BC. 42A /
01.09.01/ 2001-02 dated 11 November, 2002.
Direct Finance of farmers for Agricultural Purposes ; purchase of agricultural       156 - 158
implements and machinery ; development of irrigation potential through ;
reclamation and loan development schemes ; construction of farm buildings
and structure etc., ; construction and running of storage facilities ; production
and processing of hybrid seeds for crops ; payment of irrigation charges etc., ;
other types of direct finance of farmers ; Lending to Priority Sector
Section – 1 – Classification of Priority Sector advances ; Agriculture ; direct      161 – 165
Finance to Framers for Agricultural Purposes ; Indirect Finance to agriculture ;
small scale industries ; small scale and ancillary industries ;
Tiny Enterprises ; small scale service & Business Enterprises (SSSBE’s) ;            166 - 167
Indirect finance in the small – scale industrial sector will include credit to ;
industrial estates KVI Sector ; Other Activities / Borrowers in the Priority
sector ; Small road & Water Transport operators (SRWTO)
Retail trade – advances granted to small business ; professional & self –          168 – 169
employed persons ; state sponsored organizations for scheduled castes /
scheduled tribes
Education ; housing ; consumption loans ; loans to self – help groups (SHGs) /     170 – 171
NGOs / Microcredit ; Food and agro – based processing sector ; software
industry ; venture capital
Section – II ; Certain Types of Funds deployment eligible as priority sector       173 - 174
advances ; State Financial Corporations (SFCs) / State Industrial Development
Corporations (SIDCs) ; Rural Electrification Corporation (REC) ; Nabard ;
Small industries development Bank of India (SIDBI) ; the National industries
corporation ltd., (NSIC) ; National housing bank (NHB) ; Housing & Urban
development corporation (HUDCO) ;
Other investments ; lines of credit ; bills rediscounting ; deposits in rural      174 – 175
infracture development fund (RIDF) leasing and hire purchase
 Section – III – Targets for priority sector lending by scheduled commercial       177
banks (excluding RRBs) ; Main Targets for all scheduled commercial banks
excluding foreign banks ; sub-targets for all scheduled commercial banks
excluding foreign banks ; Direct / Indirect Agricultura lending
Small scale industries ; DRI advances ; weaker sections ; Targets for foreign      178 – 181
banks ; deposit by foreign banks with SIDBI towards shortfall in priority sector
lending ; contribution by banks to rural infrastructure development fund
(RIDF)
Section – IV – Common guidelines for priority sector advances                      183 – 184
Processing of applications ; completion of application forms ; issue of
acknowledgement of loan applications ; disposal of applications ; rejection of
proposals ; register of rejected applications ; mode of disbursement of loan ;
repayment schedule ; rates of interest
Penal interest ; inspection charges ; insurance against fire and other risks ;     185
banks may waive insurance of assets financed by bank credit in the following
cases;
Other charges ; Photographs borrowers; discretionary powers; machinery to          186 -189
look into complaints ; amendments ; annexure I – general guidelines on
priority sector lending ; general guidelines on priority sector lending
For its long term operations NABARD raises funds by :-

                                                                a)
                                                                        Floating Bonds in open
                                                                     market
                                                                b)
                                                                         Drawing from the Central
                                                                c) Govt.

                                                                d)       Drawing from National Rural
                                                                     credit Funds

                                                                         Borrowing from RRBs
                                       Bonds
Secured Premium Notes are                                   .
                                         Most of the Indian PS Banks practice retail banking.


                                               True

                                               False
 1. Pure NBFI                                   1. REC

 2. Specialised NBFI                            2. FFC

 3. Film Finance                                3. HDFC

 4. Rural Electrification                       4. Chit Funds

                                                5. UTI

                                                6. NICo Ltd.

                    Marks : 2

26.
                                                                                               facilities
                                                        are for economies in transition.

Legally speaking Pass Through Certificates

are                               and are tradeable
freely.

                                 EXIM Bank can
                                 raise resources by:-

                            a)
                                       Issuing bonds
                            b)         Borrowing from
                                 RBI
                            c)
                            d)        Borrowing from
                                 International
                                 Financial
                                 Institutions

                                     Borrowing from
                                 State Govt
1. Gen.Insurance                       1. LIC of
                                      India Ltd
 2. Life Insurance                     2. HDFC

 3. Mutual fund                        3. PPF

4. Small                               4. Chit Funds
Savings
                                       5. UTI

                                      6. NICo of
                                     India Ltd.


           If the Bank allows a finance of Rs 95 against a Bill of Rs 100 the difference of Rs. 5
           is known as the :-

      a)
               Discount
      b)       Margin

      c)       Interest

      d)       Commission

41.        DFHI was set up with the following objective :-

      a)
                Executor Trustee Services
      b)        To even out imbalances

      c)        To provide liquidity

      d)        To promote secondary market



                          LIST OF ATTEMPTED QUESTIONS AND ANSWERS


       Multiple Choice Multiple Answer
Question         SIDBI provides :-

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer      Refinance , Rediscounting of Bills , Financial support to SSIDC


True/False
Question       NABARD does not provide Refinance for stocking & distribution
               of Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        Which of the following services is not provided by Commercial
                banks?
Correct Answer Deposit Insurance

Your Answer      Deposit Insurance


Multiple Choice Single Answer
Question        IDBI has helped in the establishment of :-

Correct Answer EXIM Bank

Your Answer      IFCI


Select The Blank
Question        DFIs are the second largest issuer of ________ after the Govt
                and Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
Question         A Cheque is a Negotiable Instrument.

Correct Answer True

Your Answer      True


True/False
Question         State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer      True
Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-

Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services
Your Answer    Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services

True/False
Question       Development financial institutions primarily lend to Agriculture
               sector.
Correct Answer False

Your Answer      False


True/False
Question         Banks do not invest in the GOI securities .

Correct Answer False

Your Answer      False


Select The Blank
Question        NABARDs Criteria for Refinance covers Technical ________ of
                the project.
Correct Answer Feasibility

Your Answer      Feasibility


True/False
Question       IMF discourages excessive use of its resources by imposing a
               surcharge on large loans.
Correct Answer True

Your Answer      True


Select The Blank
Question        As a banker to the Government, RBI accepts Government
                deposits at ________% interest.
Correct Answer 0

Your Answer      0


Select The Blank
Question        HDFCs loans were linked up with________.
Correct Answer Planned Savings

Your Answer      Planned Savings


Multiple Choice Multiple Answer
Question        Other than Tourism, International funds remittances comprise of
                :-
Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty

Your Answer      Donations/Charity , Payments of Royalty


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer      Power


Multiple Choice Single Answer
Question        A major part of the credit of SFCs went to :-

Correct Answer SSI units

Your Answer      SSI units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer      Over one year


Select The Blank
Question        In addition to IFCI and ________ the Soft Loan Scheme for
                modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer      ICICI


True/False
Question         A Bill of Exchange is negotiable.

Correct Answer True

Your Answer      True


Select The Blank
Question         NHB at present has a ________ Capital of Rs. 350 crores.

Correct Answer Paid-up

Your Answer      Paid-up


Select The Blank
Question        The term ________ refers to the act of a bank extending finance
                to the seller against a letter of credit.
Correct Answer Negotiation

Your Answer      Negotiation


True/False
Question       Under MIGA the World bank offers various forms of Political
               Insurance.
Correct Answer True

Your Answer      True


Select The Blank
Question        The loans under________ are based on Poverty Reduction
                Strategy Paper.
Correct Answer PRGF

Your Answer      PRGF


Multiple Choice Multiple Answer
Question        The general insurance business can be :-

Correct Answer Marine insurance , Fire insurance , Miscellaneous

Your Answer      Marine insurance , Fire insurance , Miscellaneous


Multiple Choice Single Answer
Question        FIs can be classified into two categories depending on the basis
                of incorporation and :-
Correct Answer Operation

Your Answer      Size


Multiple Choice Multiple Answer
Question        The main objective of ICICI was :-

Correct Answer To augment export finance in India , To channelise World
               Bank's funds to industries in India , To help in building up a
               Capital Market in India
Your Answer      To augment export finance in India , To help in building up a
                 Capital Market in India , To aid Rural Development in India

Multiple Choice Single Answer
Question        SIDCs & SIICs give loans ,guarantees & : -

Correct Answer Lease finance

Your Answer      Lease finance


Multiple Choice Single Answer
Question        Commercial Papers are issued by :-

Correct Answer Corporates

Your Answer      Corporates


True/False
Question         SCICI is a member of the OTCEI.

Correct Answer True

Your Answer      True


Select The Blank
Question        The extent of powers enjoyed by a branch depends on the size
                of its ________.
Correct Answer Business

Your Answer      Business


True/False
Question         Gramin banks are State Owned Banks.

Correct Answer True

Your Answer      False


True/False
Question         NIDHIS are Trading Organisations.

Correct Answer False

Your Answer      True


Multiple Choice Single Answer
Question        Corporate Debentures are :-
Correct Answer Long term debt instruments

Your Answer       Long term debt instruments


Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer       Credit report , Banker's report , Confidential report


Match The Following
Question                   Correct Answer               Your Answer

Largest borrower in the    IBRD                         IBRD
world
International Monetary     IMF                          IMF
Cooperation
Prevention of crises       CCL                          CCL

Political insurance        MIGA                         MIGA


Multiple Choice Single Answer
Question        The apex institution in the field of Industrial Development is :-

Correct Answer IDBI

Your Answer       IDBI


Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the year
                :-
Correct Answer 1965

Your Answer       1965


Select The Blank
Question        Development financial institutions have been established to
                cater to ________ of the industrial sector.
Correct Answer Long term financial needs

Your Answer       Long term financial needs


Select The Blank
Question        The ________ was set up to help corrections in BOP
                maladjustments.
Correct Answer IMF

Your Answer      UNO


Multiple Choice Multiple Answer
Question        A member's IMF Quota determines its :-

Correct Answer Financial commitment , Voting power , Drawing power

Your Answer      Financial commitment , Voting power , Drawing power


Multiple Choice Multiple Answer
Question        Functions of R.O. of a bank include :-

Correct Answer Inspection/audit , Control on branches , Grant loans/advances

Your Answer      Control on branches , Grant loans/advances , Pay interest on
                 deposits

Multiple Choice Single Answer
Question        IDBI introduced Automatic Refinance Scheme in the year :-

Correct Answer 1978

Your Answer      1975


Select The Blank
Question        The ________ is the apex institution in the field of foreign trade
                in India.
Correct Answer EXIM bank

Your Answer      EXIM bank


Multiple Choice Multiple Answer
Question        SFCs provide finance to :-

Correct Answer Corporates , Partnerships , Proprietary firms

Your Answer      Corporates , Partnerships , Proprietary firms


Match The Following
Question                   Correct Answer              Your Answer

Aquaculture ,Brackish      Fisheries                   Fisheries
Water
Ploughing, weeding,        Seasonal Agricultural       Irrigation & Drainage
transplantation            Operations
Market Yards, Storage & Agricultural Marketing           Agricultural Marketing
Warehousing
Hill ,Tribal Area            Area Development            Area Development
development

Multiple Choice Multiple Answer
Question        The financial Assistance provided by the IMF enables member
                countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer         Rebuild resources , Stabilise currencies , Pay for imports
Financial Institutions & Banking_6


                  LIST OF ATTEMPTED QUESTIONS AND ANSWERS

   Multiple Choice Multiple Answer
   Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

    Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
                   planning
    Your Answer    Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
                   planning

   Multiple Choice Multiple Answer
   Question        Duties of an International Banking unit cover :-

    Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
                   of Credit
    Your Answer    Handling foreign currency , Handling Doc. credits , Granting lines
                   of Credit

   Select The Blank
   Question       The ________ is the apex institution in the field of foreign trade
                  in India.
   Correct Answer EXIM bank

    Your Answer     FEDAI


   True/False
   Question         The Capital of NABARD is subscribed by World Bank.

    Correct Answer False

    Your Answer     True


   True/False
   Question        NABARD does not provide Refinance for stocking & distribution
                   of Chemical Fertilisers.
    Correct Answer False

    Your Answer     False


   Multiple Choice Single Answer
   Question        PFC is committed to the integrated development of :-

    Correct Answer Power

    Your Answer     Power


   True/False




                                         -1-
Financial Institutions & Banking_6

    Question       NABARD is an apex institution in the field of Integrated Rural
                   Development.
    Correct Answer True

    Your Answer     False


   Match The Following
   Question                   Correct Answer              Your Answer

   Insurance of all           Group Insurance             Group Insurance
   employees of a Firm
   Premium Throughout Life Whole Life                     Whole Life

   Fixed Period Insurance     Endowment                   Endowment

   Insurance of ocean Cargo Marine Insurance              Marine Insurance


   Select The Blank
   Question       DFIs are the second largest issuer of ________ after the Govt
                  and Sovereign bodies.
   Correct Answer Debt instruments

    Your Answer     Debt instruments


   True/False
   Question         Mortgage Loans are loans against property.

    Correct Answer True

    Your Answer     True


   Select The Blank
   Question       An ________ letter of credit cannot be canceled by the buyer
                  without the seller's consent.
   Correct Answer Irrevocable

    Your Answer     Revocable


   Multiple Choice Single Answer
   Question        Liabilities of Insurance Cos are mostly :-

    Correct Answer Long term

    Your Answer     Long term


   Select The Blank


                                         -2-
Financial Institutions & Banking_6

    Question       As a banker to the Government, RBI accepts Government
                   deposits at ________% interest.
    Correct Answer 0

    Your Answer      0.05


   Multiple Choice Single Answer
   Question        Bills Rediscounting Scheme of IDBI was introduced in the year :-

    Correct Answer 1965

    Your Answer      1975


   Multiple Choice Single Answer
   Question        DFHI was incorporated under the :-

    Correct Answer Companies Act, 1956

    Your Answer      Banking Regulation Act,1949


   Multiple Choice Single Answer
   Question        The underdeveloped markets are characterised by :-

    Correct Answer Government regulation and control

    Your Answer      Government regulation and control


   Multiple Choice Single Answer
   Question        Financial institutions deal in :-

    Correct Answer Financial assets

    Your Answer      Financial assets


   Multiple Choice Single Answer
   Question        The first development Bank of India, established in 1948 was :-

    Correct Answer IFCI

    Your Answer      IFCI


   True/False
   Question        Non bank financial institutions undertake fund and non fund
                   based activities.
    Correct Answer True

    Your Answer      True




                                          -3-
Financial Institutions & Banking_6


   Multiple Choice Multiple Answer
   Question        Under Project Finance Scheme IDBI provides assistance for :-

    Correct Answer New Projects , Renovation , Modernisation

    Your Answer     New Projects , Renovation , Modernisation


   True/False
   Question         SCICI is a member of the OTCEI.

    Correct Answer True

    Your Answer     True


   Select The Blank
   Question       The ________ does not collect Savings from the Public.

    Correct Answer NIICO Ltd.

    Your Answer     NIICO Ltd.


   Multiple Choice Single Answer
   Question        IRBI was set up with a focus on :-

    Correct Answer Sick Units

    Your Answer     Sick Units


   Multiple Choice Single Answer
   Question        Long term debt instruments have a maturity of :-

    Correct Answer Over one year

    Your Answer     Over three years


   Multiple Choice Multiple Answer
   Question        Which of the following statements are not prepared on a daily
                   basis in branch?
   Correct Answer Cash Book , Trial Balance , P/L statement

    Your Answer     Audited Balance Sheet , Trial Balance , P/L statement


   True/False
   Question         Banks lend to corporates directly.

    Correct Answer True



                                         -4-
Financial Institutions & Banking_6

    Your Answer      True


   True/False
   Question        Small Savings are source of Capital Receipts for the
                   Government.
    Correct Answer True

    Your Answer      False


   Multiple Choice Single Answer
   Question        Treasury Bills are issued by the :-

    Correct Answer RBI

    Your Answer      RBI


   Multiple Choice Single Answer
   Question        Account where lump sum investment is made for specific period
                   is :-
   Correct Answer Term Deposit account

    Your Answer      Term Deposit account


   Multiple Choice Single Answer
   Question        The apex institution in the field of foreign trade in India is :-

    Correct Answer EXIM Bank

    Your Answer      EXIM Bank


   Multiple Choice Multiple Answer
   Question        Basic Life insurance policies include :-

    Correct Answer Term insurance , Annuity contracts , Pension plans

    Your Answer      Term insurance , Annuity contracts , Pension plans


   Select The Blank
   Question       In addition to IFCI and ________ the Soft Loan Scheme for
                  modernisation is also undertaken by IDBI.
   Correct Answer ICICI

    Your Answer      ICICI


   Multiple Choice Multiple Answer
   Question        IIBI (formerly known as IRBI )undertakes :-



                                           -5-
Financial Institutions & Banking_6

    Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
                   Consultancy & managerial services
    Your Answer    Lease or hire purchase finance , Consultancy & managerial
                   services , Rural credit activities

   Select The Blank
   Question       Syndication of Loans Globally does not involve any funds as it is
                  ________ activity.
   Correct Answer Non-fund based

    Your Answer     Non-fund based


   Multiple Choice Multiple Answer
   Question        Mutual fund has main entities like :-

    Correct Answer Sponsor , Trust , Asset Management company

    Your Answer     Sponsor , Trust , Asset Management company


   Select The Blank
   Question       ________ is merely an asset created out of book entries.

    Correct Answer SDR

    Your Answer     EFF


   Multiple Choice Multiple Answer
   Question        SFCs provide finance to :-

    Correct Answer Corporates , Partnerships , Proprietary firms

    Your Answer     Corporates , Partnerships , Proprietary firms


   Multiple Choice Single Answer
   Question        The type of banking involving a small number of Large
                   Customers viz.Corporates & multinationals is :-
   Correct Answer Wholesale Banking

    Your Answer     Global Banking


   Select The Blank
   Question       The extent of powers enjoyed by a branch depends on the size
                  of its ________.
   Correct Answer Business

    Your Answer     Business




                                         -6-
Financial Institutions & Banking_6

   Multiple Choice Multiple Answer
   Question        Credit Information report is also known as :-

    Correct Answer Credit report , Banker's report , Confidential report

    Your Answer      Credit report , Banker's report , Confidential report


   Match The Following
   Question                    Correct Answer               Your Answer

   Inter Bank Call Money       BRs, Call Money Receipts Currencies
   Markets
   Money Market Instuments CP, CD ,T- Bills                 CP, CD ,T- Bills

   Capital Market              Shares                       Shares
   Instruments
   Debt Market Instruments     GOI Securities ,Bonds        Shares


   Select The Blank
   Question       55% of HUDCO loans are earmarked for________& low income
                  groups.
   Correct Answer Weaker sections

    Your Answer      Weaker sections


   True/False
   Question        Banks authorised to deal in foreign exchange are known as
                   Authorised Dealers.
    Correct Answer False

    Your Answer      False


   Multiple Choice Multiple Answer
   Question        The financial Assistance provided by the IMF enables member
                   countries to :-
   Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

    Your Answer      Rebuild resources , Stabilise currencies , Pay for imports


   Select The Blank
   Question       The repayment holiday period is also known as ________
                  period.
   Correct Answer Moratorium

    Your Answer      Moratorium




                                           -7-
Financial Institutions & Banking_6


   Multiple Choice Single Answer
   Question        A non-scheduled bank does not deal in :-

    Correct Answer Foreign Exchange

    Your Answer     Foreign Exchange


   Multiple Choice Multiple Answer
   Question        Prominent Institutional Investors are :-

    Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

    Your Answer     Foreign Investors(FIIs) , Corporate Treasuries , Public sector
                    Companies




                                         -8-
Financial Institutions & Banking_7

38.   Initial Quantum of resources of IMF were contributed by members according to :-

Quotas fixed for members
SDR fixed for members
Population
Wealth of the nation


                    LIST OF ATTEMPTED QUESTIONS AND ANSWERS

      Multiple Choice Single Answer
      Question        Zero Coupon Bonds are issued at a :-

      Correct Answer Discount to face value

      Your Answer      Discount to face value


      Select The Blank
      Question       An ________ letter of credit cannot be canceled by the buyer
                     without the seller's consent.
      Correct Answer Irrevocable

      Your Answer      Irrevocable


      Multiple Choice Single Answer
      Question        Which of the following institution was set up as a subsidy of RBI
                      in 1964?
      Correct Answer IDBI

      Your Answer      IDBI


      Select The Blank
      Question       HDFCs loans were linked up with________.

      Correct Answer Planned Savings

      Your Answer      Planned Savings


      Multiple Choice Multiple Answer
      Question        IDA lends to poor countries :-

      Correct Answer By borrowing from IBRD , By lending at 0% interest. , For
                     periods up to ten years
      Your Answer    By borrowing from IBRD , By lending at 0% interest. , For
                     periods up to ten years

      True/False
      Question         HDFC was set up by NHB.



                                             -1 -
Financial Institutions & Banking_7

     Correct Answer False

     Your Answer       False


     True/False
     Question       IMF discourages excessive use of its resources by imposing a
                    surcharge on large loans.
     Correct Answer True

     Your Answer       False


     Multiple Choice Multiple Answer
     Question        Functions of a Bank's H.O. include:-

     Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control

     Your Answer       Liaison with RBI , Evolve Policies , Vigilance & Control


     Multiple Choice Multiple Answer
     Question        Post Offices are popular for mobilizing small savings of the
                     public due to :-
     Correct Answer Wide network , Tax concessions , Saftey of funds

     Your Answer       Wide network , Tax concessions


     True/False
     Question       In case of T-Bills potential investors have to put in competitive
                    bids.
     Correct Answer True

     Your Answer       True


     Multiple Choice Single Answer
     Question        The apex institution in the field of foreign trade in India is :-

     Correct Answer EXIM Bank

     Your Answer       EXIM Bank


     Multiple Choice Single Answer
     Question        NABARD was established on the recommendations of :-

     Correct Answer CRAFICARD

     Your Answer       CRAFICARD


     Select The Blank


                                              -2 -
Financial Institutions & Banking_7

     Question          Period of Holiday Insurance is ________.

     Correct Answer Six months or less

     Your Answer       Six months or less


     Multiple Choice Single Answer
     Question        Financial institutions deal in :-

     Correct Answer Financial assets

     Your Answer       Financial assets


     Multiple Choice Multiple Answer
     Question        R B I issues currency notes against the security of:-

     Correct Answer Gold bullion , Foreign securities , GOI securities

     Your Answer       Gold bullion , Foreign securities , GOI securities


     Select The Blank
     Question       AFC's membership consists of commercial, cooperative banks
                    and DFIs including ________.
     Correct Answer EXIM bank

     Your Answer       EXIM bank


     Multiple Choice Single Answer
     Question        SIDCs & SIICs give loans ,guarantees & :-

     Correct Answer Lease finance

     Your Answer       Lease finance


     Multiple Choice Multiple Answer
     Question        Bonds issued by institutions through SPVs to execute
                     infrastructure projects are :-
     Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

     Your Answer       SSN Nigam Ltd , MSR Dev.Corporation , MKV Dev. Corporation.


     Select The Blank
     Question       SCICI provides domestic & foreign loans for capital equipment
                    and________ services.
     Correct Answer Technical

     Your Answer       Technical




                                             -3 -
Financial Institutions & Banking_7



     Multiple Choice Single Answer
     Question        Certificate of deposit is a :-

     Correct Answer Usance promissory note

     Your Answer       Usance promissory note


     True/False
     Question       Banks authorised to deal in foreign exchange are known as
                    Authorised Dealers.
     Correct Answer False

     Your Answer       False


     Select The Blank
     Question       The Premium of ________ is obtained through obligatory
                    reinsurance premium.
     Correct Answer GIC

     Your Answer       GIC


     Multiple Choice Multiple Answer
     Question        A member's IMF Quota determines its :-

     Correct Answer Financial commitment , Voting power , Drawing power

     Your Answer       Financial commitment , Voting power , Drawing power


     Multiple Choice Multiple Answer
     Question        The main objective of ICICI was :-

     Correct Answer To augment export finance in India , To channelise World Bank's
                    funds to industries in India , To help in building up a Capital
                    Market in India
     Your Answer    To augment export finance in India , To channelise World Bank's
                    funds to industries in India , To help in building up a Capital
                    Market in India

     Select The Blank
     Question       The HDFC was set up in 1977 by the ________.

     Correct Answer ICICI

     Your Answer       ICICI


     Multiple Choice Single Answer




                                             -4 -
Financial Institutions & Banking_7

     Question         A company issues CP to save on :-

     Correct Answer Interest cost

     Your Answer      Interest cost


     Multiple Choice Multiple Answer
     Question        Duties of an International Banking unit cover :-

     Correct Answer Granting lines of Credit , Handling foreign currency , Handling
                    Doc. credits
     Your Answer    Handling foreign currency , Handling Doc. credits , Granting lines
                    of Credit

     Multiple Choice Single Answer
     Question        Commercial Papers are issued by :-

     Correct Answer Corporates

     Your Answer      Corporates


     True/False
     Question       The currency notes issued by RBI are legal tender everywhere in
                    India without any limit.
     Correct Answer True

     Your Answer      True


     Select The Blank
     Question       The term ________ refers to the act of a bank extending finance
                    to the seller against a letter of credit.
     Correct Answer Negotiation

     Your Answer      Negotiation


     True/False
     Question         NIDHIS are Trading Organisations.

     Correct Answer False

     Your Answer      False


     Multiple Choice Multiple Answer
     Question        From time to time RBI has issued :-

     Correct Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
                    bonds
     Your Answer    Straight coupon bonds , Inflation linked bonds , Zero coupon



                                           -5 -
Financial Institutions & Banking_7

                      bonds


     Multiple Choice Multiple Answer
     Question        SFCs provide finance to :-

     Correct Answer Corporates , Partnerships , Proprietary firms

     Your Answer      Corporates , Partnerships , Proprietary firms


     Multiple Choice Single Answer
     Question        DICGC also provides :-

     Correct Answer Security to deposits

     Your Answer      Guarantee to banks


     Match The Following
     Question                   Correct Answer              Your Answer

     Small Savings              Chit Funds                  Chit Funds

     Gen.Insurance              NICo of India Ltd.          NICo of India Ltd.

     Life Insurance             LIC of India Ltd            LIC of India Ltd

     Mutual fund                UTI                         UTI


     Select The Blank
     Question       Financial markets are the centres that provide facilities for
                    buying and selling of ________.
     Correct Answer Financial claims and services

     Your Answer      Goods and services


     Multiple Choice Multiple Answer
     Question        Tourism promotes :-

     Correct Answer Credit Card Business , International remittances , Travellers'
                    Cheques
     Your Answer    Credit Card Business , International remittances , Travellers'
                    Cheques

     Multiple Choice Multiple Answer
     Question        The major area of AFC's specialisation included Crop Production
                     as well as:-
     Correct Answer Crop Planning , Plant Protection , Farm Management



                                             -6 -
Financial Institutions & Banking_7

     Your Answer     Crop Planning , Plant Protection , Farm Management


     True/False
     Question       CP is a usance promissory note hence it can be negotiated by
                    endorsement & delivery.
     Correct Answer True

     Your Answer     False


     Select The Blank
     Question       The extent of powers enjoyed by a branch depends on the size
                    of its ________.
     Correct Answer Business

     Your Answer     Business


     True/False
     Question        Banks lend to corporates directly.

     Correct Answer True

     Your Answer     True


     True/False
     Question        SCICI is a member of the OTCEI.

     Correct Answer True

     Your Answer     True


     Select The Blank
     Question       In a Bank, the investment decisions are taken at ________ level.

     Correct Answer Head Office

     Your Answer     Head Office


     Match The Following
     Question                   Correct Answer            Your Answer

     NABARD                     Rural Development         Rural Development

     AFC Ltd                    Consultancy               Consultancy

     HUDCO                      Housing                   Housing




                                          -7 -
Financial Institutions & Banking_7


     NCDC                       Development of             Development of
                                Cooperatives               Cooperatives

     True/False
     Question         Banks issue Guarantees on behalf of their clients.

     Correct Answer True

     Your Answer      True


     Multiple Choice Single Answer
     Question        NonBanking Financial Companies are :-

     Correct Answer Financial institutions

     Your Answer      Financial institutions


     Multiple Choice Single Answer
     Question        A record of the holdings of GOI dated securities of each holder is
                     contained in :-
     Correct Answer SGL pass book

     Your Answer      SGL pass book




                                               -8 -
              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question       NABARD is an apex institution in the field of Integrated Rural
               Development.
Correct Answer True

Your Answer     True


Select The Blank
Question       An ________ letter of credit cannot be canceled by the buyer
               without the seller's consent.
Correct Answer Irrevocable

Your Answer     Confirmed


Select The Blank
Question       The ________ of NABARD covers release of refinance without
               prior sanction for refinance limit.
Correct Answer ARS

Your Answer     CFSF


True/ False
Question        Banks lend to corporates directly.

Correct Answer True

Your Answer     True


True/False
Question       Non bank financial institutions undertake fund and non fund
               based activities.
Correct Answer True

Your Answer     True


True/False
Question       Development financial institutions primarily lend to Agriculture
               sector.
Correct Answer False

Your Answer     True


Match The Following
Question                  Correct Answer              Your Answer
Development financial        IFCI                     Banking System
institutions
Organised sector             Banking System           IFCI

Unorganised sector           Indigenous banks         Indigenous banks

Mutual funds                 UTI                      UTI


Select The Blank
Question       NHB at present has a ________ Capital of Rs. 350 crores.

Correct Answer Paid-up

Your Answer        Paid-up


Select The Blank
Question       Development financial institutions have been established to cater
               to ________ of the industrial sector.
Correct Answer Long term financial needs

Your Answer        Short term financial needs


Select The Blank
Question       General insurance policies are genarally issued for ________
               year.
Correct Answer One

Your Answer        Ten


True/False
Question       PFC has been persuading State Governments restructuring of
               their power sector to make them viable.
Correct Answer True

Your Answer        True


Multiple Choice Single Answer
Question        RBI was established under the:-

Correct Answer RBI Act

Your Answer        Banking Regulation Act


Multiple Choice Single Answer
Question        Development Financial institutions include :-

Correct Answer State financial institutions
Your Answer       Commercial banks


Multiple Choice Single Answer
Question        The unorganised financial system includes :-

Correct Answer Indigenous bankers

Your Answer       Money markets


True/False
Question          NIDHIS are Trading Organisations.

Correct Answer False

Your Answer       True


True/False
Question          Banks issue Guarantees on behalf of their clients.

Correct Answer True

Your Answer       True


Multiple Choice Single Answer
Question        The apex institution in the field of Industrial Development is :-

Correct Answer IDBI

Your Answer       IDBI


Multiple Choice Single Answer
Question        Zero Coupon Bonds are issued at a :-

Correct Answer Discount to face value

Your Answer       Discount to face value


Multiple Choice Multiple Answer
Question        SIDBI provides :-

Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC

Your Answer       Financial support to SSIDC


Multiple Choice Multiple Answer
Question        R B I conducts monetary control by way of O M O in :-
Correct Answer Treasury bills , State /central Government Securities

Your Answer      Treasury bills , Ways and means advances , TOD


Select The Blank
Question       SCICI provides domestic & foreign loans for capital equipment
               and________ services.
Correct Answer Technical

Your Answer      After sales


Multiple Choice Single Answer
Question        The organised financial system includes :-

Correct Answer Commercial banks

Your Answer      Financial companies


True/False
Question         The overdraft facility is also known as Cash credit facility.

Correct Answer True

Your Answer      True


True/False
Question       IDA does not lend to countries that are not in a position to
               borrow from IBRD.
Correct Answer False

Your Answer      True


Multiple Choice Single Answer
Question        The underdeveloped markets are characterised by :-

Correct Answer Government regulation and control

Your Answer      Government regulation and control


Multiple Choice Multiple Answer
Question        Functions of a Bank's H.O. include:-

Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Your Answer      Liaison with RBI , Evolve Policies , Vigilance & Control


Multiple Choice Multiple Answer
Question         Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Pre-feasibility studies , Regional /Sectoral planning , Benchmark
               Surveys
Your Answer    Pre-feasibility studies , Regional /Sectoral planning , Benchmark
               Surveys

Multiple Choice Multiple Answer
Question        Tourism promotes :-

Correct Answer International remittances , Travellers' Cheques , Credit Card
               Business
Your Answer    Credit Card Business , International remittances , Travellers'
               Cheques

Multiple Choice Single Answer
Question        A record of the holdings of GOI dated securities of each holder is
                contained in :-
Correct Answer SGL pass book

Your Answer      NSE


Select The Blank
Question       The Premium of ________ is obtained through obligatory
               reinsurance premium.
Correct Answer GIC

Your Answer      OF&GICO Ltd.


Multiple Choice Single Answer
Question        IDBI introduced Automatic Refinance Scheme in the year :-

Correct Answer 1978

Your Answer      1975


Multiple Choice Multiple Answer
Question        ECGC Board comprises of Directors representing :-

Correct Answer Government , Banking/Insurance , Trade/Industry

Your Answer      Government , Banking/Insurance , Trade/Industry


Multiple Choice Single Answer
Question        Cetificate of deposit are issued by

Correct Answer Banks
Your Answer      Banks


Multiple Choice Multiple Answer
Question        Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer      Sponsor , Trust , Asset Management company


Select The Blank
Question       Mutual Funds provide the benefits of ________.

Correct Answer Portfolio management

Your Answer      Long term returns


Multiple Choice Multiple Answer
Question        DFHI was set up jointly by :-

Correct Answer RBI , Banks , All India Fis

Your Answer      RBI , All India Fis , SEBI


Match The Following
Question                   Correct Answer               Your Answer

Small Savings              Chit Funds                   HDFC

Gen.Insurance              NICo of India Ltd.           UTI

Life Insurance             LIC of India Ltd             LIC of India Ltd

Mutual fund                UTI                          Chit Funds


Multiple Choice Single Answer
Question        Corporate Debentures are :-

Correct Answer Long term debt instruments

Your Answer      Short term deposit receipts


True/False
Question         HDFC was set up by NHB.

Correct Answer False
Your Answer      True


Multiple Choice Multiple Answer
Question        The loans of finance companies are generally :-

Correct Answer At high interest , Unsecured , Based on borrowers worth

Your Answer      At high interest , Unsecured , Based on borrowers worth


Multiple Choice Single Answer
Question        A record of the holdings of GOI dated securities of each holder is
                contained in :-
Correct Answer SGL pass book

Your Answer      SGL pass book


Select The Blank
Question       In addition to IFCI and ________ the Soft Loan Scheme for
               modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer      HUDCO


Select The Blank
Question       Financial markets are the centres that provide facilities for
               buying and selling of ________.
Correct Answer Financial claims and services

Your Answer      Fixed assets


Select The Blank
Question       As a banker to the Government, RBI accepts Government
               deposits at ________% interest.
Correct Answer 0

Your Answer      0.05


Multiple Choice Single Answer
Question        A company issues CP to save on :-

Correct Answer Interest cost

Your Answer      Taxes


Select The Blank
Question         The price in financial markets is known as ________.

Correct Answer Rate of interest

Your Answer      Premium


Multiple Choice Single Answer
Question        Treasury bills are issued by :-

Correct Answer RBI

Your Answer      RBI
               LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question        Certificate of deposit is a :-

Correct Answer Usance promissory note

Your Answer       Legal Tender


True/False
Question          Cancellation of a Guarantee is known as "revocation".

Correct Answer True

Your Answer       True


Multiple Choice Multiple Answer
Question        IFCI raises its funds by way of :-

Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from IDBI

Your Answer       Issuing bonds , Issuing shares


Multiple Choice Single Answer
Question        Financial institutions deal in :-

Correct Answer Financial assets

Your Answer       Financial assets


Multiple Choice Single Answer
Question        Cetificate of deposit are issued by

Correct Answer Banks

Your Answer       Corporates


Match The Following
Question                    Correct Answer            Your Answer

Film Finance                FFC                       Chit Funds

Rural Electrification       REC                       REC

Pure NBFI                   UTI                       UTI
Specialised NBFI            HDFC                        HDFC


Multiple Choice Single Answer
Question        SFCs suffer from a very high ratio of:-

Correct Answer Overdues

Your Answer        Overdues


Multiple Choice Multiple Answer
Question        Bonds issued by institutions through SPVs to execute
                infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Your Answer        Konkan Railway Corporation , MSR Dev.Corporation


Multiple Choice Multiple Answer
Question        EXIM Bank can raise resources by:-

Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from
               International Financial Institutions
Your Answer    Issuing bonds , Borrowing from RBI


Select The Blank
Question       HDFCs loans were linked up with________.

Correct Answer Planned Savings

Your Answer        Planned Savings


True/False
Question           CPs have to be compulsorily rated.

Correct Answer True

Your Answer        True


Multiple Choice Multiple Answer
Question        The major area of AFC's specialisation included Crop Production
                as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management

Your Answer        Crop Planning , Plant Protection


Multiple Choice Multiple Answer
Question        EXIM Bank provides financial assistance to:-
Correct Answer Indian Companies , Commercial Banks , Foreign Governments

Your Answer      Investment trusts , Indian Companies


Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer      Credit report , Banker's report , Client's Report


Multiple Choice Single Answer
Question        The ultimate source of money in India is:-

Correct Answer RBI

Your Answer      RBI


True/False
Question       IMF discourages excessive use of its resources by imposing a
               surcharge on large loans.
Correct Answer True

Your Answer      True


Multiple Choice Single Answer
Question        Credit Risk under NEF Scheme of SIDBI is borne by :-

Correct Answer Central Govt & SIDBI

Your Answer      SIDBI


Select The Blank
Question       The extent of powers enjoyed by a branch depends on the size
               of its ________.
Correct Answer Business

Your Answer      Deposits


Multiple Choice Single Answer
Question        FIs can be classified into two categories depending on the basis
                of incorporation and :-
Correct Answer Operation

Your Answer      Operation


Select The Blank
Question       Financial markets are the centres that provide facilities for
               buying and selling of ________.
Correct Answer Financial claims and services

Your Answer      Financial claims and services


Multiple Choice Multiple Answer
Question        Which of the following statements are not prepared on a daily
                basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer      Audited Balance Sheet , Trial Balance , P/L statement


Multiple Choice Multiple Answer
Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Pre-feasibility studies , Regional /Sectoral planning , Benchmark
               Surveys
Your Answer    Pre-feasibility studies , Regional /Sectoral planning , Benchmark
               Surveys

True/False
Question       EXIM Bank provides Lines of Credit to other nations for Indian
               exports.
Correct Answer True

Your Answer      True


True/False
Question       In case of T-Bills potential investors have to put in competitive
               bids.
Correct Answer True

Your Answer      False


Multiple Choice Single Answer
Question        Which of the following services is not provided by Commercial
                banks?
Correct Answer Deposit Insurance

Your Answer      Deposit Insurance


True/False
Question         NABARD provides Refinance for Marketing of Crops.

Correct Answer True
Your Answer       True


Select The Blank
Question       Legally speaking Pass Through Certificates are ________ and
               are tradeable freely.
Correct Answer Promissory notes

Your Answer       Bills of Exchange


Select The Blank
Question       The loans under________ are based on Poverty Reduction
               Strategy Paper.
Correct Answer PRGF

Your Answer       RPFG


Select The Blank
Question       AFC's membership consists of commercial, cooperative banks
               and DFIs including ________.
Correct Answer EXIM bank

Your Answer       EXIM bank


Match The Following
Question                     Correct Answer         Your Answer

Largest borrower in the      IBRD                   MIGA
world
International Monetary       IMF                    PRGF
Cooperation
Prevention of crises         CCL                    IBRD

Political insurance          MIGA                   CFF


Multiple Choice Single Answer
Question        Money Markets Instruments have a maturity of less than :-

Correct Answer One year

Your Answer       One year


Multiple Choice Single Answer
Question        The word ' Tranche ' is a French word which means :-

Correct Answer A Slice
Your Answer      A Slice


Multiple Choice Multiple Answer
Question        Basic Life insurance policies include :-

Correct Answer Term insurance , Annuity contracts , Pension plans

Your Answer      Term insurance , Annuity contracts , Pension plans


Select The Blank
Question       The department handing ________ in the banks is known as the
               Treasury.
Correct Answer Investments

Your Answer      Cash & currency


True/False
Question         State loans are much less liquid than GOI Securities.

Correct Answer True

Your Answer      True


Select The Blank
Question       55% of HUDCO loans are earmarked for________& low income
               groups.
Correct Answer Weaker sections

Your Answer      Salaried persons


Multiple Choice Multiple Answer
Question        The objective NEF Scheme of SIDBI is to provide equity support
                to :-
Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing
                units in tiny & small scale sector
Your Answer     Existing Large Industrial Units , New Units in tiny Sector , New
                Units in Small Sector

Multiple Choice Multiple Answer
Question        Treasuries could be either those of the :-

Correct Answer PSUs , Private Sector Cos. , Govt.bodies

Your Answer      PSUs , Private Sector Cos. , FIIs


Select The Blank
Question       NABARDs Criteria for Refinance covers Technical ________ of
               the project.
Correct Answer Feasibility

Your Answer      Viability


Multiple Choice Single Answer
Question        Treasury Bills are issued by the :-

Correct Answer RBI

Your Answer      Central Govt.


True/False
Question         The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer      False


Select The Blank
Question       Kisan Vikas Patra are issued through ________.

Correct Answer Post Offices

Your Answer      Post Offices


Multiple Choice Single Answer
Question        NonBanking Financial Companies are :-

Correct Answer Financial institutions

Your Answer      Manufacturing units


Multiple Choice Multiple Answer
Question        The unorganised financial system comprises of :-

Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers

Your Answer      Money lenders , Indigenous bankers , Chit funds


True/False
Question         Most of the Indian PS Banks practice retail banking.

Correct Answer True

Your Answer      True
Select The Blank
Question       Secured Premium Notes are ________.

Correct Answer Debentures

Your Answer    Bonds


True/False
Question       No TDS is deducted on Interest paid on CDs.

Correct Answer True

Your Answer    False
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.

 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
  Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.

 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-

 Correct Answer Financial assets
 Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market! is the :-

 Correct Answer RBI
 Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.

 Correct Answer Financial
 Your Answer Financial

Multiple Choice Multiple Answer
Question IDA lends to poor countries :-

  Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up
to ten years
  Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

 True/False
 Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-

 Correct Answer RBI
 Your Answer RBI

True/False
Question The SFCs also borrow from SIDBI & IDBI.

 Correct Answer False
 Your Answer True

Multiple Choice Single Answer
Question RBI was established under the:-

 Correct Answer RBI Act
 Your Answer RBI Act

 Multiple Choice Multiple Answer
 Question The major area of AFC's specialisation included Crop Production as well
as:-

Correct Answer Crop Planning , Plant Protection , Farm Management
 Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-

 Correct Answer Financial commitment , Voting power , Drawing power
 Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.

 Correct Answer Six months or less
 Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-

 Correct Answer Government regulation and control
 Your Answer Government reg! ulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-

 Correct Answer Banks
 Your Answer Banks
True/False
Question The bids for T-Bills are on price/interest basis.

 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-

 Correct Answer Indigenous bankers
 Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-

 Correct Answer Over one year
 Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-

 Correct Answer Marine insurance , Fire insurance , Miscellaneous
 Your Answer Fire insurance , Miscellaneous , Marine insurance

True/False
 Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.

 Correct Answer False
 Your Answer False

Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-

 Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
 Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
&nbs! p;

Correct Answer True
Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.

 Correct Answer Weaker sections
 Your Answer Weaker sections
Multiple Choice Single Answer
Question Development Financial institutions include :-

 Correct Answer State financial institutions
 Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-

 Correct Answer One year
 Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.

 Correct Answer &n! bsp; Rate of interest
 Your Answer Rate of interest

Match The Following
Question                             Correct Answer             Your Answer

Development financial institutions             IFCI                 IFCI

Organised sector                     Banking System             Banking System

Unorganised sector                   Indigenous banks           Indigenous banks

Mutual funds                                   UTI                   UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.

Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-

 Correct Answer Usance promissory note
 Your Answer Term Deposit Receipt

True/False
Question A Bill of Exchange is negotiable.

 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
 Correct Answer Corporates
 Your Answer Corporates

 Multiple Choice Single Answer
  Question A current account where the customer can withdraw more than the balance
is :-

 Correct Answer Overdraft
 Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-

 Correct Answer At high interest , Unsecured , Based on borrowers worth
 Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-

Correct Answer SIDF
Your Answer SIDF

True/False
Question Issuance of CD attracts reserve requirements.

 Correct Answer False
 Your Answer False

True/False
Question Banks issue Guarantees on behalf of their clients.

 Correct Answer True
 Your Answer True

Match The Following
Question                    Correct Answer               Your Answer

NABARD                      Rural Development        Rural Development

AFC Ltd                     Consultancy          Consultancy

HUDCO                       Housing                 Housing

NCDC                  Development of Cooperatives Development of Cooperatives


True/False
Question Under MIGA the World bank offers various forms of Political Insurance.

Correct Answer True
 Your Answer True
 Multiple Choice Multiple Answer
 Question In case of a Life policy it is possible to withdraw from the obligation to
contribute further premium by :-

  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in
the open market

Multiple Choice Single Answer
Question The organised financial system includes :-

 Correct Answer Commercial banks
 Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the
seller against a letter of credit.

 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-

 Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
 Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

 Multiple Choice Multiple Answer
 Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :-

 Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
 Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
Question GIC raises funds to meet claims from ________.

 Correct Answer Premium collected
 Your Answer Premium collected
!
Multiple Choice Multiple Answer
  Question Treasuries could be either those of the :-

 Correct Answer PSUs , Private Sector Cos. , Govt.bodies
 Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
 Correct Answer New Projects , Renovation , Modernisation
 Your Answer New Projects , Renovation , Modernisation

Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.

 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
  Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.

 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-

 Correct Answer Financial assets
 Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market is the :-

 Correct Answer RBI
 Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.

 Correct Answer Financial
 Your Answer Financial

Multiple Choice Multiple Answer
Question IDA lends to poor countries :-

  Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up
to ten years
  Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-

 Correct Answer Interest cost
 Your Answer Interest cost
 True/False
 Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.

 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-

 Correct Answer RBI
 Your Answer RBI

True/False
Question The SFCs also borrow from SIDBI & IDBI.

 Correct Answer False
 Your Answer True

Multiple Choice Single Answer
Question RBI was established under the:-

 Correct Answer RBI Act
 Your Answer RBI Act

 Multiple Choice Multiple Answer
 Question The major area of AFC's specialisation included Crop Production as well
as:-

 Correct Answer Crop Planning , Plant Protection , Farm Management
 Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-

 Correct Answer Financial commitment , Voting power , Drawing power
 Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.

 Correct Answer Six months or less
 Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-

 Correct Answer Government regulation and control
 Your Answer Government regulation and control
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-

 Correct Answer Banks
 Your Answer Banks

True/False
Question The bids for T-Bills are on price/interest basis.

 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-

 Correct Answer Indigenous bankers
 Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-

 Correct Answer Over one year
 Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-

 Correct Answer Marine insurance , Fire insurance , Miscellaneous
 Your Answer Fire insurance , Miscellaneous , Marine insurance

True/False
 Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.

 Correct Answer False
 Your Answer False

Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-

 Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
 Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.

 Correct Answer True
 Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
 Correct Answer Weaker sections
 Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-

 Correct Answer State financial institutions
 Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-

 Correct Answer One year
 Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.

 Correct Answer Rate of interest
 Your Answer Rate of interest

Match The Following
Question                             Correct Answer             Your Answer

Development financial institutions        IFCI                  IFCI

Organised sector                     Banking System             Banking System

Unorganised sector                   Indigenous banks           Indigenous banks

Mutual funds                                   UTI                     UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.

Correct Answer ICICI
 Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-

 Correct Answer Usance promissory note
 Your Answer Term Deposit Receipt

True/False
Question A Bill of Exchange is negotiable.

 Correct Answer True
 Your Answer True
Multiple Choice Single Answer
Question Commercial Papers are issued by :-

 Correct Answer Corporates
 Your Answer Corporates

 Multiple Choice Single Answer
  Question A current account where the customer can withdraw more than the balance
is :-

 Correct Answer Overdraft
 Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-

 Correct Answer At high interest , Unsecured , Based on borrowers worth
 Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-

 Correct Answer SIDF
 Your Answer SIDF

True/False
Question Issuance of CD attracts reserve requirements.

 Correct Answer False
 Your Answer False

True/False
Question Banks issue Guarantees on behalf of their clients.

 Correct Answer True
 Your Answer True


True/False
Question Under MIGA the World bank offers various forms of Political Insurance.

 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
 Question In case of a Life policy it is possible to withdraw from the obligation to
contribute further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it
in the open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in
the open market

Multiple Choice Single Answer
Question The organised financial system includes :-

 Correct Answer Commercial banks
 Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the
seller against a letter of credit.

 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-

 Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
 Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

 Multiple Choice Multiple Answer
 Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :-

 Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
 Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
Question GIC raises funds to meet claims from ________.

 Correct Answer Premium collected
 Your Answer Premium collected

Multiple Choice Multiple Answer
Question Treasuries could be either those of the :-

 Correct Answer PSUs , Private Sector Cos. , Govt.bodies
 Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-

 Correct Answer New Projects , Renovation , Modernisation
 Your Answer New Projects , Renovation , Modernisation

Select The Blank
 Question Kisan Vikas Patra are issued through ________.
 Correct Answer Post Offices
 Your Answer Post Offices

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-

 Correct Answer SIDF
 Your Answer SIDF

Match The Following
Question                           Correct Answer                Your Answer

Corporates                             RIL, HPCL                RIL, HPCL
NGOs                                CSP, CRY, PLAN           CSP, CRY, PLAN
DFI                                  IDBI, IFCI, ICICI        IDBI, IFCI, ICICI
PSUs                               NTPC, NHPC, Coal India NTPC, NHPC, Coal India


Multiple Choice Multiple Answer
Question DFHI was set up jointly by :-

Correct Answer RBI , Banks , All India Fis
 Your Answer RBI , Banks , All India Fis , SEBI

 Select The Blank
 Question In addition to IFCI and ________ the Soft Loan Scheme for modernisation is
also undertaken by IDBI.

 Correct Answer ICICI
 Your Answer ICICI

Multiple Choice Single Answer
Question The unorganised financial system includes :-

 Correct Answer Indigenous bankers
 Your Answer Indigenous bankers

 Multiple Choice Single Answer
  Question Investment on a monthly basis and repayment on due date
is made in :-

 Correct Answer Recurring deposit
 Your Answer Term deposit account

Multiple Choice Multiple Answer
Question Tourism promotes :-

 Correct Answer Credit Card Business , International remittances ,
Travellers' Cheques
 Your Answer Credit Card Business , International remittances ,
Travellers' Cheques
Multiple Choice Single Answer
Question A company issues CP to save on :-

 Correct Answer Interest cost
 Your Answer Taxes

 Multiple Choice Single Answer
  Question A current account where the customer can withdraw more than the balance
is :-

Correct Answer Overdraft
 Your Answer Overdraft

 Select The Blank
 Question AFC's membership consists of commercial, cooperative
banks and DFIs including ________.

 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Multiple Answer
Question Functions of R.O. do not cover :-

  Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,
Issuing Lending Policy
  Your Answer Liaison with RBI/IBA , Issuing Lending Policy

Select The Blank
 Question The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.

 Correct Answer ARS
 Your Answer CFSF

 Select The Blank
  Question The ________ regulation makes the banks the largest
investor in the GOI securities.

 Correct Answer SLR
 Your Answer SLR

 Multiple Choice Multiple Answer
  Question Post Offices are popular for mobilizing small savings of
the public due to :-

 Correct Answer Wide network , Tax concessions , Saftey of funds
 Your Answer Wide network , Tax concessions , Saftey of funds

True/False
Question The SFCs also borrow from SIDBI & IDBI.
 Correct Answer False
 Your Answer True

Multiple Choice Single Answer
Question SIDBI commenced its operations from :-

 Correct Answer April 2,1990
 Your Answer April 2,1990

Multiple Choice Single Answer
Question The ultimate source of money in India is:-

 Correct Answer RBI
 Your Answer RBI

Multiple Choice Single Answer
Question The organised financial system includes :-

 Correct Answer Commercial banks
 Your Answer Financial companies

Multiple Choice Multiple Answer
Question IDA lends to poor countries :-

  Correct Answer By borrowing from IBRD , By lending at 0%
interest. , For periods up to ten years
  Your Answer By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years

Multiple Choice Multiple Answer
Question The prominent Bond issuing PSU are :-

 Correct Answer MTNL , NTPC , SAIL
 Your Answer MTNL , NTPC , SAIL

Match The Following
Question                            Correct Answer              Your Answer

Hill ,Tribal Area development       Area Development            Area Development

Aquaculture ,                         Brackish Water            Fisheries Fisheries

Ploughing, weeding, transplantation
Seasonal                           Agricultural Operations      Irrigation & Drainage

Market Yards, Storage &
Warehousing                           Agricultural Marketing   Agricultural Marketing


True/False
Question Small Savings are source of Capital Receipts for the Government.
 Correct Answer True
 Your Answer False

 Multiple Choice Multiple Answer
  Question The financial Assistance provided by the IMF enables member countries to
:-

Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
 Your Answer Rebuild resources , Stabilise currencies , Undertake specific projects

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-

 Correct Answer Banks
 Your Answer Banks

Multiple Choice Single Answer
Question IDBI has helped in the establishment of :-

 Correct Answer EXIM Bank
 Your Answer ICICI

Select The Blank
Question NHB at present has a ________ Capital of Rs. 350 crores.

 Correct Answer Paid-up
 Your Answer Paid-up

True/False
Question The Capital of NABARD is subscribed by World Bank.

 Correct Answer False
 Your Answer False

Select The Blank
Question In a Bank, the investment decisions are taken at ________ level.

 Correct Answer Head Office
 Your Answer Head Office

Multiple Choice Single Answer
Question RBI is also referred to as :-

Correct Answer Apex Bank
Your Answer Apex Bank

Multiple Choice Multiple Answer
Question EXIM Bank can raise resources by:-

 Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from International
Financial Institutions
 Your Answer Borrowing from RBI , Borrowing from International Financial Institutions

Multiple Choice Single Answer
Question PFC is committed to the integrated development of :-

Correct Answer Power
Your Answer Power

 True/False
 Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.

Correct Answer True
 Your Answer True

Multiple Choice Multiple Answer
Question SIDBI provides :-

 Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
 Your Answer Refinance , Financial support to SSIDC , Cash Credit facilities

True/False
Question Under MIGA the World bank offers various forms of Political Insurance.

Correct Answer True
 Your Answer True

Multiple Choice Multiple Answer
Question Other than Tourism, International funds remittances comprise of :-

 Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty
 Your Answer Payments of Royalty , Travel related payments

True/False
Question SCICI is a member of the OTCEI.

Correct Answer True
 Your Answer False

Select The Blank
Question HDFCs loans were linked up with________.

 Correct Answer Planned Savings
 Your Answer Planned Savings

True/False
Question A Bill of Exchange is negotiable.

 Correct Answer True
 Your Answer True
True/False
Question HDFC was set up by NHB.

 Correct Answer False
 Your Answer False

Select The Blank
Question Mutual Funds provide the benefits of ________.

 Correct Answer Portfolio management
 Your Answer Portfolio management

 True/False
 Question In case of T-Bills potential investors have to put in
competitive bids.

 Correct Answer True
 Your Answer True

True/False
Question Non bank financial institutions undertake fund and non fund based activities.

Correct Answer True
 Your Answer True

Multiple Choice Multiple Answer
Question Functions of R.O. of a bank include :-

 Correct Answer Inspection/audit , Control on branches , Grant loans/advances
 Your Answer Inspection/audit , Control on branches , Grant loans/advances

Multiple Choice Multiple Answer
Question Duties of an International Banking unit cover :-

 Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of
Credit
 Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
, Granting lines of Credit

Select The Blank
Question Secured Premium Notes are ________.

Correct Answer Debentures
Your Answer Debentures

Select The Blank
Question Syndication involves ________ sanction.

 Correct Answer In principle
 Your Answer Funded
              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
               planning
Your Answer    Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
               planning

Multiple Choice Multiple Answer
Question        Duties of an International Banking unit cover :-

Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
               of Credit
Your Answer    Handling foreign currency , Handling Doc. credits , Granting lines
               of Credit

Select The Blank
Question       The ________ is the apex institution in the field of foreign trade
               in India.
Correct Answer EXIM bank

Your Answer      FEDAI


True/False
Question         The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer      True


True/False
Question       NABARD does not provide Refinance for stocking & distribution
               of Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer      Power


True/False
Question       NABARD is an apex institution in the field of Integrated Rural
               Development.
Correct Answer True

Your Answer      False


Match The Following
Question                   Correct Answer              Your Answer

Insurance of all           Group Insurance             Group Insurance
employees of a Firm
Premium Throughout Life Whole Life                     Whole Life

Fixed Period Insurance     Endowment                   Endowment

Insurance of ocean Cargo Marine Insurance              Marine Insurance


Select The Blank
Question       DFIs are the second largest issuer of ________ after the Govt
               and Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
Question         Mortgage Loans are loans against property.

Correct Answer True

Your Answer      True


Select The Blank
Question       An ________ letter of credit cannot be canceled by the buyer
               without the seller's consent.
Correct Answer Irrevocable

Your Answer      Revocable


Multiple Choice Single Answer
Question        Liabilities of Insurance Cos are mostly :-

Correct Answer Long term

Your Answer      Long term


Select The Blank
Question       As a banker to the Government, RBI accepts Government
               deposits at ________% interest.
Correct Answer 0

Your Answer       0.05


Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the year :-

Correct Answer 1965

Your Answer       1975


Multiple Choice Single Answer
Question        DFHI was incorporated under the :-

Correct Answer Companies Act, 1956

Your Answer       Banking Regulation Act,1949


Multiple Choice Single Answer
Question        The underdeveloped markets are characterised by : -

Correct Answer Government regulation and control

Your Answer       Government regulation and control


Multiple Choice Single Answer
Question        Financial institutions deal in :-

Correct Answer Financial assets

Your Answer       Financial assets


Multiple Choice Single Answer
Question        The first development Bank of India, established in 1948 was :-

Correct Answer IFCI

Your Answer       IFCI


True/False
Question       Non bank financial institutions undertake fund and non fund
               based activities.
Correct Answer True

Your Answer       True
Multiple Choice Multiple Answer
Question        Under Project Finance Scheme IDBI provides assistance for :-

Correct Answer New Projects , Renovation , Modernisation

Your Answer      New Projects , Renovation , Modernisation


True/False
Question         SCICI is a member of the OTCEI.

Correct Answer True

Your Answer      True


Select The Blank
Question       The ________ does not collect Savings from the Public.

Correct Answer NIICO Ltd.

Your Answer      NIICO Ltd.


Multiple Choice Single Answer
Question        IRBI was set up with a focus on :-

Correct Answer Sick Units

Your Answer      Sick Units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer      Over three years


Multiple Choice Multiple Answer
Question        Which of the following statements are not prepared on a daily
                basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer      Audited Balance Sheet , Trial Balance , P/L statement


True/False
Question         Banks lend to corporates directly.

Correct Answer True
Your Answer       True


True/False
Question       Small Savings are source of Capital Receipts for the
               Government.
Correct Answer True

Your Answer       False


Multiple Choice Single Answer
Question        Treasury Bills are issued by the :-

Correct Answer RBI

Your Answer       RBI


Multiple Choice Single Answer
Question        Account where lump sum investment is made for specific period
                is :-
Correct Answer Term Deposit account

Your Answer       Term Deposit account


Multiple Choice Single Answer
Question        The apex institution in the field of foreign trade in India is :-

Correct Answer EXIM Bank

Your Answer       EXIM Bank


Multiple Choice Multiple Answ er
Question        Basic Life insurance policies include :-

Correct Answer Term insurance , Annuity contracts , Pension plans

Your Answer       Term insurance , Annuity contracts , Pension plans


Select The Blank
Question       In addition to IFCI and ________ the Soft Loan Scheme for
               modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer       ICICI


Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-
Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services
Your Answer    Lease or hire purchase finance , Consultancy & managerial
               services , Rural credit activities

Select The Blank
Question       Syndication of Loans Globally does not involve any funds as it is
               ________ activity.
Correct Answer Non-fund based

Your Answer      Non-fund based


Multiple Choice Multiple Answer
Question        Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer      Sponsor , Trust , Asset Management company


Select The Blank
Question       ________ is merely an asset created out of book entries.

Correct Answer SDR

Your Answer      EFF


Multiple Choice Multiple Answer
Question        SFCs provide finance to :-

Correct Answer Corporates , Partnerships , Proprietary firms

Your Answer      Corporates , Partnerships , Proprietary firms


Multiple Choice Single Answer
Question        The type of banking involving a small number of Large
                Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking

Your Answer      Global Banking


Select The Blank
Question       The extent of powers enjoyed by a branch depends on the size
               of its ________.
Correct Answer Business

Your Answer      Business
Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer      Credit report , Banker's report , Confidential report


Match The Following
Question                   Correct Answer               Your Answer

Inter Bank Call Money      BRs, Call Money Receipts Currencies
Markets
Money Market Instuments CP, CD ,T- Bills                CP, CD ,T- Bills

Capital Market             Shares                       Shares
Instruments
Debt Market Instruments    GOI Securities ,Bonds        Shares


Select The Blank
Question       55% of HUDCO loans are earmarked for________& low income
               groups.
Correct Answer Weaker sections

Your Answer      Weaker sections


True/False
Question       Banks authorised to deal in foreign exchange are known as
               Authorised Dealers.
Correct Answer False

Your Answer      False


Multiple Choice Multiple Answer
Question        The financial Assistance provided by the IMF enables member
                countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer      Rebuild resources , Stabilise currencies , Pay for imports


Select The Blank
Question       The repayment holiday period is also known as ________
               period.
Correct Answer Moratorium

Your Answer      Moratorium
Multiple Choice Single Answer
Question        A non-scheduled bank does not deal in :-

Correct Answer Foreign Exchange

Your Answer      Foreign Exchange


Multiple Choice Multiple Answer
Question        Prominent Institutional Investors are :-

Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Your Answer      Foreign Investors(FIIs) , Corporate Treasuries , Public sector
                 Companies
 LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
  Question    The Shipping Credit and Investment Company of India Ltd. has
changed its name to ________ effective from October 1992.
  Correct Answer    SCICI Ltd
  Your Answer    SCICI Ltd

 Select The Blank
  Question    AFC's membership consists of commercial, cooperative banks and DFIs
including ________.
  Correct Answer    EXIM bank
  Your Answer    EXIM bank

 Multiple Choice Single Answer
  Question    Financi al institutions deal in :-
  Correct Answer    Financial assets
  Your Answer    Financial assets

 Multiple Choice Single Answer
  Question    The lender of the last resort to the market! is the :-
  Correct Answer     RBI
  Your Answer    RBI

 Select The Blank
  Question    One of the objectives of NHB is to augment the ________ resources
for the housing sector.
  Correct Answer    Financial
  Your Answer    Financial

 Multiple Choice Multiple Answer
  Question    IDA lends to poor countries :-
  Correct Answer    By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
  Your Answer    By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years

 Multiple Choice Single Answer
  Question    A company issues CP to save on : -
  Correct Answer    Interest cost
  Your Answer    Interest cost

 True/False
  Question    PFC has been persuading State Governments restructuring of their
power sector to make them viable.
  Correct Answer    True
  Your Answer    True

 Multiple Choice Single Answer
  Question    The ultimate source of money in India is:-
  Correct Answer     RBI
  Your Answer    RBI

 True/False
  Question    The SFCs also borrow from SIDBI & IDBI.
  Correct Answer    False
  Your Answer    True
 Multiple Choice Single Answer
  Question    RBI was established under the:-
  Correct Answer    RBI Act
  Your Answer    RBI Act

 Multiple Choice Multiple Answer
  Question    The major area of AFC's specialisation included Crop Production as
well a! s:-
  Correct Answer    Crop Planning , Plant Protection , Farm Management
  Your Answer    Crop Planning , Plant Protection , Farm Management

 Multiple Choice Multiple Answer
  Question    A member's IMF Quota determines its : -
  Correct Answer    Financial commitment , Voting power , Drawing power
  Your Answer    Financial commitment , Voting power , Drawing power

 Select The Blank
  Question    Period of Holiday Insurance is ________.
  Correct Answer    Six months or less
  Your Answer    Three years

 Multiple Choice Single Answer
  Question    The underdeveloped markets are characterised by : -
  Correct Answer    Government regulation and control
  Your Answer    Government reg! ulation and control

 Multiple Choice Single Answer
  Question    Cetificate of deposit are issued by : -
  Correct Answer    Banks
  Your Answer    Banks

 True/False
  Question    The bids for T-Bills are on price/interest basis.
  Correct Answer    True
  Your Answer    True

 Multiple Choice Single Answer
  Question    The unorganised financial system includes : -
  Correct Answer    Indigenous bankers
  Your Answer    Indigenous bankers

 Multiple Choice Single Answer
  Question    Long term debt instruments have a maturity of :-
  Correct Answer    Over one year
  Your Answer    Over one year

 Multiple Choice Multiple Answer
  Question    The general insurance business can be :-
  Correct Answer    Marine insurance , Fire insurance , Miscellaneous
  Your Answer    Fire insurance , Miscellaneous , Marine insurance

 True/False
  Question    NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
  Correct Answer    False
  Your Answer    False
 Multiple Choice Multiple Answer
  Question   The unorganised financial system comprises of :-
  Correct Answer    Money lenders , Indigenous bankers , Lending pawn brokers
  Your Answer    Money lenders , Indigenous bankers , Lending pawn brokers

 True/False
  Question    NABARD is an apex institution in the field of Integrated Rural
Development.
&nbs! p; Correct Answer    True
  Your Answer    True

 Select The Blank
  Question    55% of HUDCO loans are earmarked for________& low income groups.
  Correct Answer    Weaker sections
  Your Answer    Weaker sections

 Multiple Choice Single Answer
  Question    Development Financial institutions include : -
  Correct Answer    State financial institutions
  Your Answer    State financial institutions

 Multiple Choice Single Answer
  Question    Money Markets Instruments have a maturity of less than : -
  Correct Answer    One year
  Your Answer    One year

 Select The Blank
  Question    The price in financial markets is known as ________.
  Correct Answer &n! bsp; Rate of interest
  Your Answer    Rate of interest

 Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


 Select The Blank
  Question    The HDFC was set up in 1977 by the ________.
  Correct Answer    ICICI
  Your Answer    ICICI

 Multiple Choice Single Answer
  Question    Certificate of deposit is a :-
  Correct Answer    Usance promissory note
  Your Answer    Term Deposit Receipt

 True/False
  Question   A Bill of Exchange is negotiable.
  Correct Answer   True
 Your Answer    True

 Multiple Choice Single Answer
  Question    Commercial Papers are issued by :-
  Correct Answer    Corporates
  Your Answer    Corporates

 Multiple Choice Single Answer
  Question    A current account where the customer can withdraw more than the
balance is :-
  Correct Answer    Overdraft
  Your Answer    Overdraft

 Multiple Choice Multiple Answer
  Question    The loans of finance companies are generally :-
  Correct Answer    At high interest , Unsecured , Based on borrowers worth
  Your Answer    At high interest , Unsecured , Based on borrowers worth

 Multiple Choice Single Answer
  Question    For a focus on the SSI Sector in 1986 IDBI created :-
&n! bsp; Correct Answer    SIDF
  Your Answer    SIDF

 True/False
  Question    Issuance of CD attracts reserve requirements.
  Correct Answer    False
  Your Answer    False

 True/False
  Question    Banks issue Guarant ees on behalf of their clients.
  Correct Answer    True
  Your Answer    True

 Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


 True/False
  Question    Under MIGA the World bank offers various forms of Political
Insurance.
  Correct Answer    True
  Your Answer    True

 Multiple Choice Multiple Answer
  Question   In case of a Life policy it is possible to withdraw from the
obligation to contribute further premium by :-
  Correct Answer   Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
  Your Answer   Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market

 Multiple Choice Single Answer
  Question    The organised financial system includes :-
  Correct Answer    Commercial banks
  Your Answer    Commercial banks

 Select The Blank
  Question    The term ________ refers to the act of a bank extending finance to
the seller against a letter of credit.
  Correct Answer    Negotiation
  Your Answer    Negotiation

 Multiple Choice Multiple Answer
  Question    Functions of a Bank's H.O. include:-
  Correct Answer    Liaison with RBI , Evolve Policies , Vigilance & Control
  Your Answer    Liaison with RBI , Evolve Policies , Vigilance & Control

 Multiple Choice Multiple Answer
  Question    Bonds issued by institutions through SPVs to execute infrastructure
projects are :-
  Correct Answer    MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
  Your Answer    MSR Dev.Corporation , MKV Dev. Corporation. , SSN Niga m Ltd

 Select The Blank
  Question    GIC raises funds to meet claims from ________.
  Correct Answer    Premium collected
  Your Answer    Premium collected
 !
 Multiple Choice Multiple Answer
  Question    Treasuries could be either those of the :-
  Correct Answer    PSUs , Private Sector Cos. , Govt.bodies
  Your Answer    PSUs , Private Sector Cos. , Govt.bodies

 Multiple Choice Multiple Answer
  Question    Under Project Finance Scheme IDBI provides assistance for :-
  Correct Answer    New Projects , Renovation , Modernisation
  Your Answer    New Projects , Renovation , Modernisation

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market is the :-
Correct Answer RBI
Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
 Correct Answer Financial
 Your Answer Financial

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
 Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

True/False
 Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
 Question The SFCs also borrow from SIDBI & IDBI.
 Correct Answer False
 Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government regulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
 Question The bids for T-Bills are on price/interest basis.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

 True/False
  Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
  Correct Answer False
  Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
 Correct Answer True
 Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt

True/False
 Question A Bill of Exchange is negotiable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF

True/False
 Question Issuance of CD attracts reserve requirements.
 Correct Answer False
 Your Answer False

True/False
 Question Banks issue Guarantees on behalf of their clients.
 Correct Answer True
 Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


True/False
 Question Under MIGA the World bank offers various forms of Political Insurance.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
  Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected

Multiple Choice Multiple Answer
Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market is the :-
Correct Answer RBI
Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
 Correct Answer Financial
 Your Answer Financial

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
 Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

True/False
 Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
 Question The SFCs also borrow from SIDBI & IDBI.
 Correct Answer False
 Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government regulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
 Question The bids for T-Bills are on price/interest basis.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

 True/False
  Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
  Correct Answer False
  Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
 Correct Answer True
 Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt

True/False
 Question A Bill of Exchange is negotiable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF

True/False
 Question Issuance of CD attracts reserve requirements.
 Correct Answer False
 Your Answer False

True/False
 Question Banks issue Guarantees on behalf of their clients.
 Correct Answer True
 Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


True/False
 Question Under MIGA the World bank offers various forms of Political Insurance.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
  Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected

Multiple Choice Multiple Answer
Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

 Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

 Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market is the :-
Correct Answer RBI
Your Answer RBI

 Select The Blank
 Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
 Correct Answer Financial
 Your Answer Financial

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
 Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

True/False
 Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
 Question The SFCs also borrow from SIDBI & IDBI.
 Correct Answer False
 Your Answer True
Multiple Choice Single Answer
Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Multiple Choice Multiple Answer
Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government regulation and control

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
 Question The bids for T-Bills are on price/interest basis.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

 True/False
  Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
  Correct Answer False
  Your Answer False
Multiple Choice Multiple Answer
Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural Development.
 Correct Answer True
 Your Answer True

Select The Blank
Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt

True/False
 Question A Bill of Exchange is negotiable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

Multiple Choice Single Answer
Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF

True/False
 Question Issuance of CD attracts reserve requirements.
 Correct Answer False
 Your Answer False

True/False
 Question Banks issue Guarantees on behalf of their clients.
 Correct Answer True
 Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


True/False
 Question Under MIGA the World bank offers various forms of Political Insurance.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
  Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :-
  Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
  Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer
Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank
Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected

Multiple Choice Multiple Answer
Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation
Select The Blank
  Question    Kisan Vikas Patra are issued through ________.
  Correct Answer    Post Offices
  Your Answer    Post Offices

 Multiple Choice Single Answer
  Question    For a focus on the SSI Sector in 1986 IDBI created :-
  Correct Answer    SIDF
  Your Answer    SIDF

 Match The Following
Question Correct Answer Your Answer

Corporates RIL, HPCL RIL, HPCL

NGOs CASP, CRY, PLAN CASP, CRY, PLAN

DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI

PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India


 Multiple Choice Multiple Answer
  Question    DFHI was set up jointly by :-
  Correct Answer    RBI , Banks , All India Fis
  Your Answer    RBI , Banks , All India Fis , SEBI

 Select The Blank
  Question    In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
  Correct Answer    ICICI
  Your Answer    ICICI

 Multiple Choice Single Answer
  Question    The unorganised financial system includes :-
  Correct Answer    Indigenous bankers
  Your Answer    Indigenous bankers

 Multiple Choice Single Answer
  Question   Investment on a monthly basis and repayment on due date
is made in :-
  Correct Answer    Recurring deposit
  Your Answer    Term deposit account

 Multiple Choice Multiple Answer
  Question    Tourism promotes :-
  Correct Answer    Credit Card Business , International remittances ,
Travellers' Cheques
  Your Answer    Credit Card Business , International rem ittances ,
Travellers' Cheques

 Multiple Choice Single Answer
  Question    A company issues CP to save on : -
  Correct Answer    Interest cost
  Your Answer    Taxes

 Multiple Choice Single Answer
  Question    A current account where the customer can withdraw more
than the balance is :-
  Correct Answer    Overdraft
  Your Answer    Overdraft

 Select The Blank
  Question    AFC's membership consists of commercial, cooperative
banks and DFIs including ________.
  Correc t Answer   EXIM bank
  Your Answer    EXIM bank

 Multiple Choice Multiple Answer
  Question    Functions of R.O. do not cover : -
  Correct Answer    SLR/CRR maintenance , Liaison with RBI/IBA ,
Issuing Lending Policy
  Your Answer    Liaison with RBI/IBA , Issuing Lending Policy

 Select The Blank
  Question    The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.
  Correct Answer    ARS
  Your Answer    CFSF

 Select The Blank
  Question    The ________ regulation makes the banks the largest
investor in the GOI securities.
  Correct Answer     SLR
  Your Answer    SLR

 Multiple Choice Multiple Answer
  Question    Post Offices are popular for mobilizing small savings of
the public due to :-
  Correct Answer    Wide network , Tax concessions , Saftey of funds
  Your Answer    Wide network , Tax concessions , Saftey of funds

 True/False
  Question    The SFCs also borrow from SIDBI & IDBI.
  Correct Answer    False
  Your Answer    True

 Multiple Choice Single Answer
  Question    SIDBI commenced its operations from : -
  Correct Answer    April 2,1990
  Your Answer    April 2,1990

 Multiple Choice Single Answer
  Question    The ultimate source of money in India is:-
  Correct Answer     RBI
  Your Answer    RBI

 Multiple Choice Single Answer
  Question    The organised financial system includes :-
  Correct Answer    Commercial banks
  Your Answer    Financial companies

 Multiple Choice Multiple Answer
  Question   IDA lends to poor countries :-
  Correct Answer    By borrowing from IBRD , By lending at 0%
interest. , For periods up to ten years
  Your Answer    By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years

 Multiple Choice Multiple Answer
  Question    The prominent Bond issuing PSU are :-
  Correct Answer    MTNL , NTPC , SAIL
  Your Answer    MTNL , NTPC , SAIL

 Match The Following
Question Correct Answer Your Answer

Hill ,Tribal Area development Area Development Area Development

Aquaculture ,Brackish Water Fisheries Fisheries

Ploughing, weeding, transplantation Seasonal Agricultural Operations
Irrigation & Drainage

Market Yards, Storage & Warehousing Agricultural Marketing
Agricultural Marketing


 True/False
  Question    Small Savings are source of Capital Receipts for the
Government.
  Correct Answer    True
  Your Answer    False

 Multiple Choice Multiple Answer
  Question    The financial Assistance provided by the IMF enables
member countries to :-
  Correct Answer    Rebuild resources , Stabilise currencies , Pay for
imports
  Your Answer    Rebuild resources , Stabilise currencies , Undertake
specific projects

 Multiple Choice Single Answer
  Question    Cetificate of deposit are issued by : -
  Correct Answer    Banks
  Your Answer    Banks

 Multiple Choice Single Answer
  Question    IDBI has helped in the establishment of :-
  Correct Answer    EXIM Bank
  Your Answer    ICICI

 Select The Blank
  Question    NHB at present has a ________ Capital of Rs. 350 crores.
  Correct Answer    Paid-up
  Your Answer    Paid -up

 True/False
  Question    The Capital of NABARD is subscribed by World Bank.
  Correct Answer    False
  Your Answer    False
 Select The Blank
  Question    In a Bank, the investment decisions are taken at
________ level.
  Correct Answer    Head Office
  Your Answer    Head Office

 Multiple Choice Single Answer
  Question    RBI is also referred to as :-
  Correct Answer    Apex Bank
  Your Answer    Apex Bank

 Multiple Choice Multiple Answer
  Question    EXIM Bank can raise resources by:-
  Correct Answer    Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
  Your Answer    Borrowing from RBI , Borrowing from International
Financial Institutions

 Multiple Choice Single Answer
  Question    PFC is committed to the i ntegrated development of :-
  Correct Answer    Power
  Your Answer    Power

 True/False
  Question    PFC has been persuading State Governments restructuring
of their power sector to make them viable.
  Correct Answer    True
  Your Answer    True

 Multiple Choice Multiple Answer
  Question    SIDBI provides :-
  Correct Answer    Refinance , Rediscounting of Bills , Financial
support to SSIDC
  Your Answer    Refinance , Financial support to SSIDC , Cash Credit
facilities

 True/False
  Question    Under MIGA the World bank offers various forms of
Political Insurance.
  Correct Answer    True
  Your Answer    True

 Multiple Choice Multiple Answer
  Question    Other than Tourism, International funds remittances
comprise of :-
  Correct Answer    Donations/Charity , Payments of Salaries ,
Payments of Royalty
  Your Answer    Payments of Royalty , Travel related payments

 True/False
  Question    SCICI is a member of the OTCEI.
  Correct Answer    True
  Your Answer    False

 Select The Blank
  Question   HDFCs loans were linked up with________.
 Correct Answer    Planned Savings
 Your Answer    Planned Savings

 True/False
  Question    A Bill of Exchange is negotiable.
  Correct Answer    True
  Your Answer    True

 True/False
  Question    HDFC was set up by NHB.
  Correct Answer    False
  Your Answer    False

 Select The Blank
  Question    Mutual Funds provide the benefits of ________.
  Correct Answer    Portfolio management
  Your Answer    Portfolio management

 True/False
  Question    In case of T-Bills potential investors have to put in
competitive bids.
  Correct Answer    True
  Your Answer    True

 True/False
  Question    Non bank financial institutions undertake fund and non
fund based activities.
  Correct Answer    True
  Your Answer    True

 Multiple Choice Multiple Answer
  Question    Functions of R.O. of a bank include : -
  Correct Answer    Inspection/audit , Control on branches , Grant
loans/advances
  Your Answer    Inspection/audit , Control on branches , Grant
loans/advances

 Multiple Choice Multiple Answer
  Question    Duties of an International Banking unit cover :-
  Correct Answer    Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
  Your Answer    Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit

 Select The Blank
  Question    Secured Premium Notes are ________.
  Correct Answer    Debentures
  Your Answer    Debentures

 Select The Blank
  Question    Syndication involves ________ sanction.
  Correct Answer    In principle
  Your Answer    Funded
              LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question        Agricultural Finance Consultancy Ltd(AFC) activities cover :-

Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
               planning
Your Answer    Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
               planning

Multiple Choice Multiple Answer
Question        Duties of an International Banking unit cover :-

Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
               of Credit
Your Answer    Handling foreign currency , Handling Doc. credits , Granting lines
               of Credit

Select The Blank
Question       The ________ is the apex institution in the field of foreign trade
               in India.
Correct Answer EXIM bank

Your Answer      FEDAI


True/False
Question         The Capital of NABARD is subscribed by World Bank.

Correct Answer False

Your Answer      True


True/False
Question       NABARD does not provide Refinance for stocking & distribution
               of Chemical Fertilisers.
Correct Answer False

Your Answer      False


Multiple Choice Single Answer
Question        PFC is committed to the integrated development of :-

Correct Answer Power

Your Answer      Power


True/False
Question       NABARD is an apex institution in the field of Integrated Rural
               Development.
Correct Answer True

Your Answer      False


Match The Following
Question                   Correct Answer              Your Answer

Insurance of all           Group Insurance             Group Insurance
employees of a Firm
Premium Throughout Life Whole Life                     Whole Life

Fixed Period Insurance     Endowment                   Endowment

Insurance of ocean Cargo Marine Insurance              Marine Insurance


Select The Blank
Question       DFIs are the second largest issuer of ________ after the Govt
               and Sovereign bodies.
Correct Answer Debt instruments

Your Answer      Debt instruments


True/False
Question         Mortgage Loans are loans against property.

Correct Answer True

Your Answer      True


Select The Blank
Question       An ________ letter of credit cannot be canceled by the buyer
               without the seller's consent.
Correct Answer Irrevocable

Your Answer      Revocable


Multiple Choice Single Answer
Question        Liabilities of Insurance Cos are mostly :-

Correct Answer Long term

Your Answer      Long term


Select The Blank
Question       As a banker to the Government, RBI accepts Government
               deposits at ________% interest.
Correct Answer 0

Your Answer       0.05


Multiple Choice Single Answer
Question        Bills Rediscounting Scheme of IDBI was introduced in the year :-

Correct Answer 1965

Your Answer       1975


Multiple Choice Single Answer
Question        DFHI was incorporated under the :-

Correct Answer Companies Act, 1956

Your Answer       Banking Regulation Act,1949


Multiple Choice Single Answer
Question        The underdeveloped markets are characterised by : -

Correct Answer Government regulation and control

Your Answer       Government regulation and control


Multiple Choice Single Answer
Question        Financial institutions deal in :-

Correct Answer Financial assets

Your Answer       Financial assets


Multiple Choice Single Answer
Question        The first development Bank of India, established in 1948 was :-

Correct Answer IFCI

Your Answer       IFCI


True/False
Question       Non bank financial institutions undertake fund and non fund
               based activities.
Correct Answer True

Your Answer       True
Multiple Choice Multiple Answer
Question        Under Project Finance Scheme IDBI provides assistance for :-

Correct Answer New Projects , Renovation , Modernisation

Your Answer      New Projects , Renovation , Modernisation


True/False
Question         SCICI is a member of the OTCEI.

Correct Answer True

Your Answer      True


Select The Blank
Question       The ________ does not collect Savings from the Public.

Correct Answer NIICO Ltd.

Your Answer      NIICO Ltd.


Multiple Choice Single Answer
Question        IRBI was set up with a focus on :-

Correct Answer Sick Units

Your Answer      Sick Units


Multiple Choice Single Answer
Question        Long term debt instruments have a maturity of :-

Correct Answer Over one year

Your Answer      Over three years


Multiple Choice Multiple Answer
Question        Which of the following statements are not prepared on a daily
                basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement

Your Answer      Audited Balance Sheet , Trial Balance , P/L statement


True/False
Question         Banks lend to corporates directly.

Correct Answer True
Your Answer       True


True/False
Question       Small Savings are source of Capital Receipts for the
               Government.
Correct Answer True

Your Answer       False


Multiple Choice Single Answer
Question        Treasury Bills are issued by the :-

Correct Answer RBI

Your Answer       RBI


Multiple Choice Single Answer
Question        Account where lump sum investment is made for specific period
                is :-
Correct Answer Term Deposit account

Your Answer       Term Deposit account


Multiple Choice Single Answer
Question        The apex institution in the field of foreign trade in India is :-

Correct Answer EXIM Bank

Your Answer       EXIM Bank


Multiple Choice Multiple Answ er
Question        Basic Life insurance policies include :-

Correct Answer Term insurance , Annuity contracts , Pension plans

Your Answer       Term insurance , Annuity contracts , Pension plans


Select The Blank
Question       In addition to IFCI and ________ the Soft Loan Scheme for
               modernisation is also undertaken by IDBI.
Correct Answer ICICI

Your Answer       ICICI


Multiple Choice Multiple Answer
Question        IIBI (formerly known as IRBI )undertakes :-
Correct Answer Merchant Banking activities , Lease or hire purchase finance ,
               Consultancy & managerial services
Your Answer    Lease or hire purchase finance , Consultancy & managerial
               services , Rural credit activities

Select The Blank
Question       Syndication of Loans Globally does not involve any funds as it is
               ________ activity.
Correct Answer Non-fund based

Your Answer      Non-fund based


Multiple Choice Multiple Answer
Question        Mutual fund has main entities like :-

Correct Answer Sponsor , Trust , Asset Management company

Your Answer      Sponsor , Trust , Asset Management company


Select The Blank
Question       ________ is merely an asset created out of book entries.

Correct Answer SDR

Your Answer      EFF


Multiple Choice Multiple Answer
Question        SFCs provide finance to :-

Correct Answer Corporates , Partnerships , Proprietary firms

Your Answer      Corporates , Partnerships , Proprietary firms


Multiple Choice Single Answer
Question        The type of banking involving a small number of Large
                Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking

Your Answer      Global Banking


Select The Blank
Question       The extent of powers enjoyed by a branch depends on the size
               of its ________.
Correct Answer Business

Your Answer      Business
Multiple Choice Multiple Answer
Question        Credit Information report is also known as :-

Correct Answer Credit report , Banker's report , Confidential report

Your Answer      Credit report , Banker's report , Confidential report


Match The Following
Question                   Correct Answer               Your Answer

Inter Bank Call Money      BRs, Call Money Receipts Currencies
Markets
Money Market Instuments CP, CD ,T- Bills                CP, CD ,T- Bills

Capital Market             Shares                       Shares
Instruments
Debt Market Instruments    GOI Securities ,Bonds        Shares


Select The Blank
Question       55% of HUDCO loans are earmarked for________& low income
               groups.
Correct Answer Weaker sections

Your Answer      Weaker sections


True/False
Question       Banks authorised to deal in foreign exchange are known as
               Authorised Dealers.
Correct Answer False

Your Answer      False


Multiple Choice Multiple Answer
Question        The financial Assistance provided by the IMF enables member
                countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports

Your Answer      Rebuild resources , Stabilise currencies , Pay for imports


Select The Blank
Question       The repayment holiday period is also known as ________
               period.
Correct Answer Moratorium

Your Answer      Moratorium
Multiple Choice Single Answer
Question        A non-scheduled bank does not deal in :-

Correct Answer Foreign Exchange

Your Answer      Foreign Exchange


Multiple Choice Multiple Answer
Question        Prominent Institutional Investors are :-

Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Your Answer      Foreign Investors(FIIs) , Corporate Treasuries , Public sector
                 Companies
               Financial Institutions & Banking_18
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank
 Question The Shipping Credit and Investment Company of India Ltd. has
changed its name to ________ effective from October 1992.
 Correct Answer SCICI Ltd
 Your Answer SCICI Ltd

Select The Blank
 Question AFC's membership consists of commercial, cooperative banks and
DFIs including ________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

Multiple Choice Single Answer
Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer
Question The lender of the last resort to the market! is the :-
Correct Answer RBI
Your Answer RBI

Select The Blank
 Question One of the objectives of NHB is to augment the ________
resources for the housing sector.
 Correct Answer Financial
 Your Answer Financial

Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years
 Your Answer By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

                                    Page 1
                   Financial Institutions & Banking_18
 True/False
 Question PFC has been persuading State Governments restructuring of
their power sector to make them viable.
 Correct Answer True
 Your Answer True

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Multiple Choice Multiple Answer
 Question The major area of AFC's specialisation included Crop Production
as well a! s:-
 Correct Answer Crop Planning , Plant Protection , Farm Management
 Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer
Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank
Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer
Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government reg! ulation and control

                                  Page 2
                    Financial Institutions & Banking_18
Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer
Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer
Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

True/False
 Question NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
 Correct Answer False
 Your Answer False

Multiple Choice Multiple Answer
 Question The unorganised financial system comprises of :-
 Correct Answer Money lenders , Indigenous bankers , Lending pawn
brokers
 Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
 Question NABARD is an apex institution in the field of Integrated Rural
Development.
&nbs! p; Correct Answer True
 Your Answer True
                                Page 3
                    Financial Institutions & Banking_18

Select The Blank
 Question 55% of HUDCO loans are earmarked for________& low income
groups.
 Correct Answer Weaker sections
 Your Answer Weaker sections

Multiple Choice Single Answer
Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer
Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank
Question The price in financial markets is known as ________.
Correct Answer &n! bsp; Rate of interest
Your Answer Rate of interest

Match The Following
Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI


Select The Blank
Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer
Question Certificate of deposit is a :-
Correct Answer Usance promissory note
                                    Page 4
                Financial Institutions & Banking_18
Your Answer Term Deposit Receipt

True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

 Multiple Choice Single Answer
 Question A current account where the customer can withdraw more than
the balance is :-
 Correct Answer Overdraft
 Your Answer Overdraft

Multiple Choice Multiple Answer
Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer
 Question For a focus on the SSI Sector in 1986 IDBI created :-
&n! bsp; Correct Answer SIDF
 Your Answer SIDF

True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False

True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer

NABARD Rural Development Rural Development
                              Page 5
                    Financial Institutions & Banking_18

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives


 True/False
 Question Under MIGA the World bank offers various forms of Political
Insurance.
 Correct Answer True
 Your Answer True

Multiple Choice Multiple Answer
 Question In case of a Life policy it is possible to withdraw from the
obligation to contribute further premium by :-
 Correct Answer Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market
 Your Answer Surrendering the policy , Converting it into paid up policy ,
Assigning it in the open market

Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

 Select The Blank
 Question The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
 Correct Answer Negotiation
 Your Answer Negotiation

Multiple Choice Multiple Answer
Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

 Multiple Choice Multiple Answer
 Question Bonds issued by institutions through SPVs to execute
infrastructure projects are :-
 Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN
                                   Page 6
                     Financial Institutions & Banking_18
Nigam Ltd
 Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
Ltd

Select The Blank
 Question GIC raises funds to meet claims from ________.
 Correct Answer Premium collected
 Your Answer Premium collected
!
Multiple Choice Multiple Answer
 Question Treasuries could be either those of the :-
 Correct Answer PSUs , Private Sector Cos. , Govt.bodies
 Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer
Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation

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                                     Page 7
Financial Institution and Banking

Topic                                                             PageNo
organised sector                                                         2
financial services                                                       2
Indian financial system                                                  3
commercial banks                                                         4
development financial institutions                                       5
insurance companies                                                      5
other public sector financial institutions                               5
post office savings                                                      5
mutual funds                                                             5
non banking finanical institutions                                       6
Reserve bank of India                                                    9
functions of RBI                                                         9
banker to the government                                                10
bankers bank                                                            10
supervising authority                                                   10
exchange control authority                                              10
promoter of financial system                                            11
fiscal and monetary policy                                              12
open market operations                                                  12
developmental financial institutions                                    17
industrial finance corporation of India                                 17
Industrial development bank of india - idbi                             18
industrial credit and investment corporation of india Ltd - icici       19
irbi                                                                    20
sfcs                                                                    20
sidc and siics                                                          20
state small industries development corporation (SSIDC)                  21
power finance corporation (PFC)                                         21
financial services offered by the corporation                           21
term loans                                                              21
lease financing                                                         22
direct discounting of bills                                             22
guarantee services                                                      22
loan syndication                                                        22
short term loan                                                         22
institutional development services                                      22
utility development plans                                               23
financial assistance for power sector studies                           23
reform and restructuring related studies                                23
reform and restructuring of SEBs                                        23
OFAP                                                                    23
export import bank of india                                             24
national bank of agriculture and rural development                      24
genesis of NABARD                                                       24
ARC                                                                     24
GOI                                                                     24
ACD                                                                     24
CRAFICARD                                                               24
types of refinance facilities                                           26
interest rates                                                          26
production credits                                                      28
financing weavers                                                       28
OSAO                                                                    29
refinance for marketing of crops                                29
other refinance facilities                                      30
long term loans to state governments                            30
investment credit ( medium and long term) refinance             31
shipping credit and investment company of India (SCICI)         33
principal activities                                            33
agricultural finance consultancy ltd (AFC)                      34
area of specialisation                                          36
surveys and studies                                             38
National co-operative development corporation (NCDC)            38
finance and financing                                           39
procedure of santion / disbursal of assistance                  40
promotional and development role                                40
marketing                                                       40
agricultural inputs                                             40
agro-processing industries                                      41
storage and cold storage                                        41
program for weaker sections                                     41
consumer business                                               41
area based integrated co-operative development project          42
national housing bank (NHB)                                     42
housing and urban development corporation (HUDCO)               44
housing development finance corporation (HDFC)                  44
land development banks                                          45
banking sector                                                  49
retail banking                                                  49
cash credit                                                     50
safe custody services for safe keeping of important documents   50
acceptance of deposits from non resident indians                51
difference between retail banking and wholesale banking         51
global banking                                                  51
scheduled bank in india                                         52
commercial bank and cooperative bank                            52
public sector banks                                             52
private sector banks                                            52
bank accounts                                                   53
deposit account                                                 53
lump sum investment                                             54
periodic investment                                             54
cash credit                                                     54
loan syndication                                                54
repayment period                                                54
bill                                                            55
discount                                                        55
remittance                                                      55
letter of credit                                                55
bank guarantee                                                  56
negotiation                                                     56
cash reserve ratio                                              56
statutory reserve ratio                                         57
note pertaining to reserve ratio                                57
clearing operation                                              57
daily product basis                                             57
monthly product basis                                           58
repayment holiday                                               58
credit instruments                                              59
negotiable instruments                                                59
acceptance                                                            59
credit report                                                         59
syndication                                                           59
custodial services                                                    60
security                                                              60
foreign exchange                                                      60
securitisation                                                        60
international banking                                                 60
international trade                                                   61
tourism                                                               61
remittance of funds from one place to another place besides tourism   61
syndication of loans global for corporate houses                      61
foreign exchange management                                           62
profile of a bank                                                     62
branch banking                                                        62
different layers of banking                                           62
duties of an international banking department                         63
exchange operations                                                   63
administrative functions in a bank                                    63
administrative units                                                  64
banking business                                                      65
Deposit insurance and credit guarantee corporation (DICGC)            66
export credit guarantee corporation (ECGC)                            67
indian money market                                                   73
instrument                                                            73
comercial paper                                                       74
certificates of deposit                                               75
treasury bills                                                        75
short term debentures                                                 75
bill of exchange                                                      75
long term debt instruments                                            76
government of India dated securities (GOISEC)                         76
inflation linked bonds                                                77
zero coupon bonds                                                     77
state government securities (state loans)                             78
public sector undertaking bonds (PSU Bonds)                           78
bonds of public financial institutions (PFI)                          78
corporate debentures                                                  79
Pass through certificates (PTC)                                       79
issuers                                                               79
government of India and other sovereign bodies                        80
banks and development financial institutions                          80
public sector undertaking (PSU )                                      81
private sector companies                                              81
government owned or quasi governement non corporate entities          82
investors                                                             82
banks                                                                 83
insurance companies                                                   84
provident funds                                                       84
mutual funds                                                          86
trusts                                                                86
corporate treasuries                                                  87
foreign institutional investors                                       87
securities trading corporation of india (STCI)                        88
discount and finance house of india                                   88
non banking financial intermediaries                         93
LIC                                                          93
general nature of insurance companies                        93
instroduction of Life Insurance corporations                 93
types and structure of insurance plans                       94
general insurance corporation                                96
unit trust of india                                          98
provident / pension funds                                    99
post offices                                                 99
Non bank financial companies (NBFC)                          99
investment companies                                        100
loan companies                                              102
chit funds                                                  102
NIDHIS                                                      103
hire purchase finance companies                             104
equipment leasing finance companies                         104
international monetary fund (IMF)                           109
quotas                                                      109
concessional and non concessional lending                   113
poverty reduction and growth facility (PRGF)                113
stand by arrangments (SBA)                                  114
extended fund facility (EFF)                                114
supplement reserve facility (SRF)                           114
contingent credit lines (CCL)                               114
compensatory financing facility (CFF)                       114
emergency assistance                                        114
special drawing rights                                      114
the international bank for reconstruction and development   115
world bank                                                  115
international finance corporation                           115
international development assiciation (IDA)                 116
the bank for international settlements                      116
regional development agencies                               116
RBI                                                         119
non performing assets                                       120
out of order status                                         121
overdue                                                     121
income recognition                                          121
reversal of income                                          122
appropriation of recovery in NPA                            122
NPA                                                         122
sub standard Assets                                         123
subtful assets                                              124
loss assets                                                 124
account with temporary deficiancies                         124
upgradation of loan accounts classified as NPA              125
account regularised near about the balance sheet date       125
agricultural advances                                       126
government guaranteed advances                              128
restructuring rescheduling of loans                         128
upgradation of restructured accounts                        130
corporate debt restructuring (CDR systems)                  131
CDR                                                         131
stand still clause                                          138
category 2 CDR system                                       139
projects under implementation                               142
assest classification                                              142
income recognition                                                 144
provisioning                                                       145
availability of security / net worth of borrower / guarantor       145
take-out finance                                                   145
post shipment supplier credit                                      145
export project finance                                             146
advances under rehabiliation approved by BIFR/TLI                  146
provisioning norms general                                         146
sub standard Assets                                                148
leased assets                                                      148
advances                                                           150
advances covered by CGTSI guarantee                                151
take-out finance                                                   152
reserve for exchange rate fluctuations account (RERFA)             152
country risk                                                       153
securitisation company (SC) / reconstruction company (RC)          154
writing off of NPA                                                 155
direct finance to farmers for agricultural purposes                156
purchase of agricultural implements and machinery                  156
development of irrigation potential through                        156
lending to priority sector                                         158
priority sector advances                                           161
direct finance to farmers for agricultural purposes                161
indirect finance to agriculture                                    163
small scale and ancillary industries                               166
tiny enterprises                                                   166
small scale service and business enterprises(SSSBE)                166
industrial estates                                                 167
KVI sector                                                         167
small road and water transport operators (SRWTO)                   167
retail trade                                                       168
small business                                                     168
professional and self emplyed persons                              168
                                                                   169
state sponsored organisations for scheduled castes / scheduled tribes
education                                                          170
housing                                                            170
compsumption loans                                                 170
loans to self help groups (SHG)/NGO/MICROEDIT                      170
food and agro based processing sector                              171
software industry                                                  171
venture capital                                                    171
investments in special bonds                                       173
HUDCO                                                              174
NSIC                                                               174
NHB                                                                174
lines of credit                                                    174
bills rediscounting                                                175
deposits in rural infrastructure development (RIDF)                175
leasing and hire purchase                                          175
targets for priority sector lending by scheduled commercial banks 177
scheduled commercial banks excluding foreign banks                 177
direct / indirect agricultural lending                             177
small scale industries                                             178
DRI advances                                                       178
Weaker sections                                                    178
Targets for foreign banks                        178
rural infrastructure developments fund (RIDF )   180
common guidelines for priority sector advances   183
application forms                                183
mode of disbursement of loan                     184
repayment schedule                               184
rates of interest                                184
penal interest                                   185
inspection charges                               185
insurance against fire and other risks           185
other charges                                    186
photographs of borrowers                         186
discretionary powers                             186
machinery to look into complants                 186
amendments                                       186
                    Financial Institutions & Banking_20
Select The Blank
 Question Kisan Vikas Patra are issued through ________.
 Correct Answer Post Offices
 Your Answer Post Offices

Multiple Choice Single Answer
Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF

Match The Following
Question Correct Answer Your Answer

Corporates RIL, HPCL RIL, HPCL

NGOs CASP, CRY, PLAN CASP, CRY, PLAN

DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI

PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India


Multiple Choice Multiple Answer
Question DFHI was set up jointly by :-
Correct Answer RBI , Banks , All India Fis
Your Answer RBI , Banks , All India Fis , SEBI

 Select The Blank
 Question In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
 Correct Answer ICICI
 Your Answer ICICI

Multiple Choice Single Answer
Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

 Multiple Choice Single Answer
 Question Investment on a monthly basis and repayment on due date
is made in :-
 Correct Answer Recurring deposit
                                Page 1
                Financial Institutions & Banking_20
Your Answer Term deposit account

Multiple Choice Multiple Answer
 Question Tourism promotes :-
 Correct Answer Credit Card Business , International remittances ,
Travellers' Cheques
 Your Answer Credit Card Business , International remittances ,
Travellers' Cheques

Multiple Choice Single Answer
Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Taxes

 Multiple Choice Single Answer
 Question A current account where the customer can withdraw more
than the balance is :-
 Correct Answer Overdraft
 Your Answer Overdraft

Select The Blank
 Question AFC's membership consists of commercial, cooperative
banks and DFIs including ________.
 Correct Answer EXIM bank
 Your Answer EXIM bank

 Multiple Choice Multiple Answer
 Question Functions of R.O. do not cover :-
 Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,
Issuing Lending Policy
 Your Answer Liaison with RBI/IBA , Issuing Lending Policy

Select The Blank
 Question The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.
 Correct Answer ARS
 Your Answer CFSF

 Select The Blank
 Question The ________ regulation makes the banks the largest
investor in the GOI securities.
 Correct Answer SLR
                                Page 2
                    Financial Institutions & Banking_20
Your Answer SLR

 Multiple Choice Multiple Answer
 Question Post Offices are popular for mobilizing small savings of
the public due to :-
 Correct Answer Wide network , Tax concessions , Saftey of funds
 Your Answer Wide network , Tax concessions , Saftey of funds

True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question SIDBI commenced its operations from :-
Correct Answer April 2,1990
Your Answer April 2,1990

Multiple Choice Single Answer
Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

Multiple Choice Single Answer
Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Financial companies

 Multiple Choice Multiple Answer
 Question IDA lends to poor countries :-
 Correct Answer By borrowing from IBRD , By lending at 0%
interest. , For periods up to ten years
 Your Answer By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years

Multiple Choice Multiple Answer
Question The prominent Bond issuing PSU are :-
Correct Answer MTNL , NTPC , SAIL
Your Answer MTNL , NTPC , SAIL

Match The Following
Question Correct Answer Your Answer
                                Page 3
                    Financial Institutions & Banking_20

Hill ,Tribal Area development Area Development Area Development

Aquaculture ,Brackish Water Fisheries Fisheries

Ploughing, weeding, transplantation Seasonal Agricultural Operations
Irrigation & Drainage

Market Yards, Storage & Warehousing Agricultural Marketing
Agricultural Marketing


True/False
 Question Small Savings are source of Capital Receipts for the
Government.
 Correct Answer True
 Your Answer False

 Multiple Choice Multiple Answer
 Question The financial Assistance provided by the IMF enables
member countries to :-
 Correct Answer Rebuild resources , Stabilise currencies , Pay for
imports
 Your Answer Rebuild resources , Stabilise currencies , Undertake
specific projects

Multiple Choice Single Answer
Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

Multiple Choice Single Answer
Question IDBI has helped in the establishment of :-
Correct Answer EXIM Bank
Your Answer ICICI

Select The Blank
Question NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer Paid-up

True/False
                                   Page 4
                 Financial Institutions & Banking_20
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer False

Select The Blank
 Question In a Bank, the investment decisions are taken at
________ level.
 Correct Answer Head Office
 Your Answer Head Office

Multiple Choice Single Answer
Question RBI is also referred to as :-
Correct Answer Apex Bank
Your Answer Apex Bank

 Multiple Choice Multiple Answer
 Question EXIM Bank can raise resources by:-
 Correct Answer Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
 Your Answer Borrowing from RBI , Borrowing from International
Financial Institutions

Multiple Choice Single Answer
Question PFC is committed to the integrated development of :-
Correct Answer Power
Your Answer Power

True/False
 Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
 Question SIDBI provides :-
 Correct Answer Refinance , Rediscounting of Bills , Financial
support to SSIDC
 Your Answer Refinance , Financial support to SSIDC , Cash Credit
facilities

True/False
Question Under MIGA the World bank offers various forms of
                              Page 5
                     Financial Institutions & Banking_20
Political Insurance.
 Correct Answer True
 Your Answer True

Multiple Choice Multiple Answer
 Question Other than Tourism, International funds remittances
comprise of :-
 Correct Answer Donations/Charity , Payments of Salaries ,
Payments of Royalty
 Your Answer Payments of Royalty , Travel related payments

True/False
Question SCICI is a member of the OTCEI.
Correct Answer True
Your Answer False

Select The Blank
Question HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer Planned Savings

True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True

True/False
Question HDFC was set up by NHB.
Correct Answer False
Your Answer False

Select The Blank
Question Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer Portfolio management

True/False
 Question In case of T-Bills potential investors have to put in
competitive bids.
 Correct Answer True
 Your Answer True

                                    Page 6
                   Financial Institutions & Banking_20
 True/False
 Question Non bank financial institutions undertake fund and non
fund based activities.
 Correct Answer True
 Your Answer True

 Multiple Choice Multiple Answer
 Question Functions of R.O. of a bank include :-
 Correct Answer Inspection/audit , Control on branches , Grant
loans/advances
 Your Answer Inspection/audit , Control on branches , Grant
loans/advances

Multiple Choice Multiple Answer
 Question Duties of an International Banking unit cover :-
 Correct Answer Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
 Your Answer Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit

Select The Blank
Question Secured Premium Notes are ________.
Correct Answer Debentures
Your Answer Debentures

Select The Blank
Question Syndication involves ________ sanction.
Correct Answer In principle
Your Answer Funded




                                  Page 7

								
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