Banking Awareness- Important Questions

Which of the following fall in teh category of refinance institutions ?

1. NABARD
2. SIDBI
3. National Housing Bank (NHB)
4. Both 2 and 3
5. All of these

The world Bank is also referred to as

1. IBRD
2. IDBI
3. IDA
4. IMF
5. None of these

Many a time we come across a term in banking sector "Retail Banking". What does it really mean ? In simple words Retail Banking is to provide Banking Services ?

1. Entirely to agricultural sector only
2. ONly to individual customers in an integrated manner
3. Only to Self Help Groups for their Survival
4. ONly to big corporate and business houses
5. None of these

Your friend gets Rs 10,0000 from his grand parents. He / She wants to invest thsi amount in a bank in such a way that he / she need not withdraw the amount partly or wholly for two years. What kind of account shoudl he / she open in the bank ?

1. Small Savings Account
2. Current Account
3. Term Deposit Account
4. Demat Account
5. None of these

In a company the use of proce sensitive corporate informatin by the company people to make gains or cover loss known as ?

1. Insider trading
2. future trading
3. Foreign Trading
4. Stock Trading
5. None of these

"Mobile Banking" is comparatively a new mode of bankign all over the world, what is its status in India ?

A. The willingness to conduct banking through mobile devices is higher in India

B. About 4% of total m-commerce transactions have taken place in the first few months of the current fiscal year in India

C. Since RBI's permission is needed for offering mobile banking, only two private banks are providing this service at present

1. Only A
2. Only B
3. Only C
4. All A, B and C
5. None of these

A currency swap is refer to __________________ ???

1. A spot sale of currency combined with a forward repurchase of the same currency-as part of single transaction.
2. A forward sale of currency combined with a forward repurchase of the same currency -as part of a single transaction.
3. A forward sale of currency combined with a forward repurchase of the same currency - in two different transactions
4. All of these
5. None of these

Many banks have adopted / launched 'Core Banking Solutions' (CBS). Core Banking solution is ?

1. A marketing strategy adopted by the banks
2. A new type of ATM useful for rural population
3. A delivery channel for quick and fast delivery
4. A new product launched to help senior citizens only as they are not able to visit branches / ATMs frequently.
5. None of these

The bank rate means ____________

1. Rate of Interest charged by commercial banks from borrowers
2. Rate of Interst at which commercial banks discounted bills of their borrowers
3. Rate of interest allowed by commercial banks on their deposits
4. Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
5. None of these

Consider the following statements ________________________

A. Bond price and interest rate are positively related.

B. Bond price and interest rate are negatively related.

C. Credit cretion varies directly with Cash Reserve Ration (CRR)

D. Credit Creation varies inversely with cash Reserve Ratio (CRR).

Which of the statements given above is / are correct ?

1. A and C
2. A and D
3. B and C
4. B and D
5. None of these

If interest payment is added to primary deficit, it is equivalent to ____________??

1. Budget deficit
2. Fiscal deficit
3. Deficit financing
4. Revenue deficit
5. None of these

the utmost advantage of plastic money is ________

1. Style
2. Printing very cheap
3. Circulation very easy
4. Occupies less space
5. Shelf life will be longer

Expand the term IFRS

1. Indian Financial Reporting Standards
2. Indian Financial Reporting Systems
3. International Financial Reporting Standards
4. International Financial Reporting Systems
5. None of these

Consider the following statements

A. With growing saivngs among households in India, the need for retail credit is declining.

B. The Banking Ombudsman is a senior official appointed by the RBI

Which among the statements given above is / are correct?

1. Only A
2. Only B
3. Both A and B
4. Neither A nor B
5. None of these

As per the revised guidliens issued by RBI on 3rd January, 2001 

1. the minimum paid-up capital requirement of a newly set up private sector bank shoudl be atleast Rs. 200 crore and it should be raised to Rs. 300 crore within three years of commencement of business.
2. the minimum capital adequacy ratio for newly set up private sector bank shas been fixed at 10 percent on a continuous basis from the commencement of operations
3. Only 1
4. Both 1 and 2
5. None of these

Which of the following are the recommendations of the International Group (Chairman : Shri A. V. Sardesai) set up by RBI in regard to strengthening and viability of RRBs ?

1. Merger/ amalgamation of RRBs to improve operational viability
2. Change of sponsor banks to enhance competitiveness
3. Governance and management and scope for improving profitability
4. All of these
5. None of these

Fixing of charges for various types of services like issuance of demand draft etc. except cheques collection provided by urban co-operative banks is done by

1. Reserve Bank of India
2. the Indian Bank's Association
3. NABARD
4. the bank itself which should not be out of line with the average cost of providing the services
5. All of these

What is 'financial inclusion' ?

A. Easy access to bank accounts for safe parking of savings

B. Availability of cheap credits through apropriately designed loans for poor and low income households and small enterpreneures

C. Availability of basic financial products like insurance

1. Only A
2. Only B
3. Only C
4. Both A and B
5. All A, B and C

Which of the following is the purpose owing to which banks have created Investment Fluctuation Reserves (IFR) ? This will hep them in managing?

1. Interest Rate Risk
2. CRR
3. SLR
4. Foreign Currency Account
5. None of these

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