Financial Institutions & Banking Combined

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 True/False

Wholesale Banking

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 Development financial institutions

Correct Answer

Your Answer

IFCI

IFCI

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/False

True

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 world

IBRD

IBRD

International Monetary Cooperation

IMF

IMF

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 Water

Fisheries

Fisheries

Ploughing, weeding, transplantation

Seasonal Agricultural Operations

Irrigation & Drainage

Market Yards, Storage & Agricultural Marketing Warehousing

Agricultural Marketing

Hill ,Tribal Area development

Area Development

Area 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 requirement

Prevention of speculative 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 Instruments

CP, T- Bills

CP, T- Bills

Negotaible Instruments

Bills of exchange ,Cheques

Bills of exchange ,Cheques

GOI securities

ZCB, ILBonds

ZCB, ILBonds

Long Term Debt instruments

PSU Bonds

PSU Bonds

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 , Prefeasibility 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 True/False Question

Power

NABARD is an apex institution in the field of Integrated Rural Development.

Correct Answer True Your Answer

False

Match The Following Question Insurance of all employees of a Firm

Correct Answer

Your Answer

Group Insurance

Group Insurance

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 Markets

BRs, Call Money Receipts

Currencies

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 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 world

IBRD

IBRD

International Monetary Cooperation

IMF

IMF

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 Water

Fisheries

Fisheries

Ploughing, weeding, transplantation

Seasonal Agricultural Operations

Irrigation & Drainage

Market Yards, Storage & Agricultural Marketing Warehousing

Agricultural Marketing

Hill ,Tribal Area development

Area Development

Area 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 a Firm

Group Insurance

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 Markets

BRs, Call Money Receipts

Currencies

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 Development financial institutions

Correct Answer

Your Answer

IFCI

IFCI

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 requirement

Prevention of speculative 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 Instruments

CP, T- Bills

CP, T- Bills

Negotaible Instruments

Bills of exchange ,Cheques

Bills of exchange ,Cheques

GOI securities

ZCB, ILBonds

ZCB, ILBonds

Long Term Debt instruments

PSU Bonds

PSU Bonds

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 , Prefeasibility 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 world

IBRD

IBRD

International Monetary Cooperation

IMF

IMF

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 Water

Fisheries

Fisheries

Ploughing, weeding, transplantation

Seasonal Agricultural Operations

Irrigation & Drainage

Market Yards, Storage & Agricultural Marketing Warehousing

Agricultural Marketing

Hill ,Tribal Area development

Area Development

Area 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 Yahoo! for Good Click here to donate to the Hurricane Katrina relief effort. YAHOO! GROUPS LINKS Visit your group "SCDL_PGDBA_Finance_2004" on the web. To unsubscribe from this group, send an email to: [email protected] Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.

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 organised sector financial services Indian financial system commercial banks development financial institutions insurance companies other public sector financial institutions post office savings mutual funds non banking finanical institutions Reserve bank of India functions of RBI banker to the government bankers bank supervising authority exchange control authority promoter of financial system fiscal and monetary policy open market operations developmental financial institutions industrial finance corporation of India Industrial development bank of india - idbi industrial credit and investment corporation of india Ltd - icici irbi sfcs sidc and siics state small industries development corporation (SSIDC) power finance corporation (PFC) financial services offered by the corporation term loans lease financing direct discounting of bills guarantee services loan syndication short term loan institutional development services utility development plans financial assistance for power sector studies reform and restructuring related studies reform and restructuring of SEBs OFAP export import bank of india national bank of agriculture and rural development

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genesis of NABARD ARC GOI ACD CRAFICARD types of refinance facilities interest rates production credits financing weavers OSAO refinance for marketing of crops other refinance facilities long term loans to state governments investment credit ( medium and long term) refinance shipping credit and investment company of India (SCICI) principal activities agricultural finance consultancy ltd (AFC) area of specialisation surveys and studies National co-operative development corporation (NCDC) finance and financing procedure of santion / disbursal of assistance promotional and development role marketing agricultural inputs agro-processing industries storage and cold storage program for weaker sections consumer business area based integrated co-operative development project national housing bank (NHB) housing and urban development corporation (HUDCO) housing development finance corporation (HDFC) land development banks banking sector retail banking cash credit safe custody services for safe keeping of important documents acceptance of deposits from non resident indians difference between retail banking and wholesale banking global banking scheduled bank in india commercial bank and cooperative bank public sector banks private sector banks bank accounts deposit account

24 24 24 24 24 26 26 28 28 29 29 30 30 31 33 33 34 36 38 38 39 40 40 40 40 41 41 41 41 42 42 44 44 45 49 49 50 50 51 51 51 52 52 52 52 53 53

lump sum investment periodic investment cash credit loan syndication repayment period bill discount remittance letter of credit bank guarantee negotiation cash reserve ratio statutory reserve ratio note pertaining to reserve ratio clearing operation daily product basis monthly product basis repayment holiday credit instruments negotiable instruments acceptance credit report syndication custodial services security foreign exchange securitisation international banking international trade tourism remittance of funds from one place to another place besides tourism syndication of loans global for corporate houses foreign exchange management profile of a bank branch banking different layers of banking duties of an international banking department exchange operations administrative functions in a bank administrative units banking business Deposit insurance and credit guarantee corporation (DICGC) export credit guarantee corporation (ECGC) indian money market instrument comercial paper certificates of deposit

54 54 54 54 54 55 55 55 55 56 56 56 57 57 57 57 58 58 59 59 59 59 59 60 60 60 60 60 61 61 61 61 62 62 62 62 63 63 63 64 65 66 67 73 73 74 75

treasury bills short term debentures bill of exchange long term debt instruments government of India dated securities (GOISEC) inflation linked bonds zero coupon bonds state government securities (state loans) public sector undertaking bonds (PSU Bonds) bonds of public financial institutions (PFI) corporate debentures Pass through certificates (PTC) issuers government of India and other sovereign bodies banks and development financial institutions public sector undertaking (PSU ) private sector companies government owned or quasi governement non corporate entities investors banks insurance companies provident funds mutual funds trusts corporate treasuries foreign institutional investors securities trading corporation of india (STCI) discount and finance house of india non banking financial intermediaries LIC general nature of insurance companies instroduction of Life Insurance corporations types and structure of insurance plans general insurance corporation unit trust of india provident / pension funds post offices Non bank financial companies (NBFC) investment companies loan companies chit funds NIDHIS hire purchase finance companies equipment leasing finance companies international monetary fund (IMF) quotas concessional and non concessional lending

75 75 75 76 76 77 77 78 78 78 79 79 79 80 80 81 81 82 82 83 84 84 86 86 87 87 88 88 93 93 93 93 94 96 98 99 99 99 100 102 102 103 104 104 109 109 113

poverty reduction and growth facility (PRGF) stand by arrangments (SBA) extended fund facility (EFF) supplement reserve facility (SRF) contingent credit lines (CCL) compensatory financing facility (CFF) emergency assistance special drawing rights the international bank for reconstruction and development world bank international finance corporation international development assiciation (IDA) the bank for international settlements regional development agencies RBI non performing assets out of order status overdue income recognition reversal of income appropriation of recovery in NPA NPA sub standard Assets subtful assets loss assets account with temporary deficiancies upgradation of loan accounts classified as NPA account regularised near about the balance sheet date agricultural advances government guaranteed advances restructuring rescheduling of loans upgradation of restructured accounts corporate debt restructuring (CDR systems) CDR stand still clause category 2 CDR system projects under implementation assest classification income recognition provisioning availability of security / net worth of borrower / guarantor take-out finance post shipment supplier credit export project finance advances under rehabiliation approved by BIFR/TLI provisioning norms general sub standard Assets

113 114 114 114 114 114 114 114 115 115 115 116 116 116 119 120 121 121 121 122 122 122 123 124 124 124 125 125 126 128 128 130 131 131 138 139 142 142 144 145 145 145 145 146 146 146 148

leased assets advances advances covered by CGTSI guarantee take-out finance reserve for exchange rate fluctuations account (RERFA) country risk securitisation company (SC) / reconstruction company (RC) writing off of NPA direct finance to farmers for agricultural purposes purchase of agricultural implements and machinery development of irrigation potential through lending to priority sector priority sector advances direct finance to farmers for agricultural purposes indirect finance to agriculture small scale and ancillary industries tiny enterprises small scale service and business enterprises(SSSBE) industrial estates KVI sector small road and water transport operators (SRWTO) retail trade small business professional and self emplyed persons state sponsored organisations for scheduled castes / scheduled tribes education housing compsumption loans loans to self help groups (SHG)/NGO/MICROEDIT food and agro based processing sector software industry venture capital investments in special bonds HUDCO NSIC NHB lines of credit bills rediscounting deposits in rural infrastructure development (RIDF) leasing and hire purchase targets for priority sector lending by scheduled commercial bank s scheduled commercial banks excluding foreign banks direct / indirect agricultural lending small scale industries DRI advances Weaker sections Targets for foreign banks

148 150 151 152 152 153 154 155 156 156 156 158 161 161 163 166 166 166 167 167 167 168 168 168 169 170 170 170 170 171 171 171 173 174 174 174 174 175 175 175 177 177 177 178 178 178 178

rural infrastructure developments fund (RIDF ) common guidelines for priority sector advances application forms mode of disbursement of loan repayment schedule rates of interest penal interest inspection charges insurance against fire and other risks other charges photographs of borrowers discretionary powers machinery to look into complants amendments

180 183 183 184 184 184 185 185 185 186 186 186 186 186

Chapter – 1 : Overview of Financial markets Meaning and scope 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 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 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 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) 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 ;

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9 – 12

17 – 21

22 - 31

33 – 37

Social Sector Development ; Remote Sensing Application & Resources 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 (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 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 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 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 ; 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 / 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 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 ; 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 (PSU Bonds ) ; Bonds of public financial institutions (PFIs) Corporate

38 – 41

42 – 45

49 – 51

52 – 53 54 – 58

59 -61

62 – 63

64 – 68 73 – 77

78 - 83

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 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 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 offices ; other non-bank financial companies’ (NBFCs) ; Investment companies ; Loans companies chit funds ; nidhis functions ; accepting deposits loan and 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 (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 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 ; 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 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 under consortium arrangements ; record of recovery of the individual member; accounts where there is a erosion in the value of security ; advances to

84 – 89

93 - 97

98-101 102 – 105

109 – 113 114 – 117

119 – 123

124 – 125

126-127

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 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 ; 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 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 ; 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 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) / 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 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 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) ; 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)

128- 134

135 – 140 141 – 145

146 – 149

150 – 153

154-156

156 - 158

161 – 165 166 - 167

Retail trade – advances granted to small business ; professional & self – employed persons ; state sponsored organizations for scheduled castes / scheduled tribes Education ; housing ; consumption loans ; loans to self – help groups (SHGs) / NGOs / Microcredit ; Food and agro – based processing sector ; software industry ; venture capital Section – II ; Certain Types of Funds deployment eligible as priority sector 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 infracture development fund (RIDF) leasing and hire purchase Section – III – Targets for priority sector lending by scheduled commercial 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 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 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 ; banks may waive insurance of assets financed by bank credit in the following cases; Other charges ; Photographs borrowers; discretionary powers; machinery to look into complaints ; amendments ; annexure I – general guidelines on priority sector lending ; general guidelines on priority sector lending

168 – 169 170 – 171 173 - 174

174 – 175 177

178 – 181

183 – 184

185 186 -189

For its long term operations NABARD raises funds by :-

a) b)

Floating Bonds in open market Drawing from the Central

c) Govt. d)

Drawing from National Rural credit Funds Borrowing from RRBs

Secured Premium Notes are

Bonds

. 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 freely.

and are tradeable

EXIM Bank can raise resources by:-

a)

Issuing bonds

b) c)

Borrowing from RBI

d)

Borrowing from International Financial Institutions Borrowing from State Govt 1. LIC of India Ltd

1. Gen.Insurance 2. Life Insurance

2. HDFC

3. Mutual fund

3. PPF

4. Small Savings

4. Chit Funds 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 world

IBRD

IBRD

International Monetary Cooperation

IMF

IMF

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 Water

Fisheries

Fisheries

Ploughing, weeding, transplantation

Seasonal Agricultural Operations

Irrigation & Drainage

Market Yards, Storage & Agricultural Marketing Warehousing

Agricultural Marketing

Hill ,Tribal Area development

Area Development

Area 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 Insurance of all employees of a Firm

Correct Answer

Your Answer

Group Insurance

Group Insurance

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 Inter Bank Call Money Markets

Correct Answer

Your Answer

BRs, Call Money Receipts Currencies

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

-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

True/False Question

Development of Cooperatives

Development of Cooperatives

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 institutions

IFCI

Banking System

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 world

IBRD

MIGA

International Monetary Cooperation

IMF

PRGF

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

Development financial institutions

IFCI

Organised sector

Banking System

Unorganised sector

Indigenous banks

Mutual funds

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 :-

Your Answer IFCI Banking System Indigenous banks UTI

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

NABARD

Rural Development

AFC Ltd

Consultancy

HUDCO

Housing

NCDC

Your Answer Rural Development Consultancy Housing

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

Development financial institutions

IFCI

Your Answer IFCI

Organised sector

Banking System

Banking System

Unorganised sector

Indigenous banks

Indigenous banks

UTI

UTI

Mutual funds

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

Corporates NGOs DFI PSUs

RIL, HPCL RIL, HPCL CSP, CRY, PLAN CSP, CRY, PLAN IDBI, IFCI, ICICI IDBI, IFCI, ICICI NTPC, NHPC, Coal India NTPC, NHPC, Coal India

Your Answer

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

Brackish Water

Fisheries Fisheries

Aquaculture ,

Ploughing, weeding, transplantation Seasonal Agricultural Operations Market Yards, Storage & Warehousing

Agricultural Marketing

Irrigation & Drainage 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 True/False

Power

Question

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

False

Match The Following Question Insurance of all employees of a Firm

Correct Answer

Your Answer

Group Insurance

Group Insurance

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 Inter Bank Call Money Markets

Correct Answer

Your Answer

BRs, Call Money Receipts Currencies

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 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 Yahoo! for Good Click here to donate to the Hurricane Katrina relief effort. YAHOO! GROUPS LINKS Visit your group "SCDL_PGDBA_Finance_2004" on the web. To unsubscribe from this group, send an email to: [email protected] Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.

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 True/False

Power

Question

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

False

Match The Following Question Insurance of all employees of a Firm

Correct Answer

Your Answer

Group Insurance

Group Insurance

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 Inter Bank Call Money Markets

Correct Answer

Your Answer

BRs, Call Money Receipts Currencies

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

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 Yahoo! for Good Click here to donate to the Hurricane Katrina relief effort. YAHOO! GROUPS LINKS Visit your group "SCDL_PGDBA_Finance_2004" on the web. To unsubscribe from this group, send an email to: [email protected] Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.

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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 other refinance facilities long term loans to state governments investment credit ( medium and long term) refinance shipping credit and investment company of India (SCICI) principal activities agricultural finance consultancy ltd (AFC) area of specialisation surveys and studies National co-operative development corporation (NCDC) finance and financing procedure of santion / disbursal of assistance promotional and development role marketing agricultural inputs agro-processing industries storage and cold storage program for weaker sections consumer business area based integrated co-operative development project national housing bank (NHB) housing and urban development corporation (HUDCO) housing development finance corporation (HDFC) land development banks banking sector retail banking cash credit safe custody services for safe keeping of important documents acceptance of deposits from non resident indians difference between retail banking and wholesale banking global banking scheduled bank in india commercial bank and cooperative bank public sector banks private sector banks bank accounts deposit account lump sum investment periodic investment cash credit loan syndication repayment period bill discount remittance letter of credit bank guarantee negotiation cash reserve ratio statutory reserve ratio note pertaining to reserve ratio clearing operation daily product basis monthly product basis repayment holiday credit instruments

29 30 30 31 33 33 34 36 38 38 39 40 40 40 40 41 41 41 41 42 42 44 44 45 49 49 50 50 51 51 51 52 52 52 52 53 53 54 54 54 54 54 55 55 55 55 56 56 56 57 57 57 57 58 58 59

negotiable instruments acceptance credit report syndication custodial services security foreign exchange securitisation international banking international trade tourism remittance of funds from one place to another place besides tourism syndication of loans global for corporate houses foreign exchange management profile of a bank branch banking different layers of banking duties of an international banking department exchange operations administrative functions in a bank administrative units banking business Deposit insurance and credit guarantee corporation (DICGC) export credit guarantee corporation (ECGC) indian money market instrument comercial paper certificates of deposit treasury bills short term debentures bill of exchange long term debt instruments government of India dated securities (GOISEC) inflation linked bonds zero coupon bonds state government securities (state loans) public sector undertaking bonds (PSU Bonds) bonds of public financial institutions (PFI) corporate debentures Pass through certificates (PTC) issuers government of India and other sovereign bodies banks and development financial institutions public sector undertaking (PSU ) private sector companies government owned or quasi governement non corporate entities investors banks insurance companies provident funds mutual funds trusts corporate treasuries foreign institutional investors securities trading corporation of india (STCI) discount and finance house of india

59 59 59 59 60 60 60 60 60 61 61 61 61 62 62 62 62 63 63 63 64 65 66 67 73 73 74 75 75 75 75 76 76 77 77 78 78 78 79 79 79 80 80 81 81 82 82 83 84 84 86 86 87 87 88 88

non banking financial intermediaries LIC general nature of insurance companies instroduction of Life Insurance corporations types and structure of insurance plans general insurance corporation unit trust of india provident / pension funds post offices Non bank financial companies (NBFC) investment companies loan companies chit funds NIDHIS hire purchase finance companies equipment leasing finance companies international monetary fund (IMF) quotas concessional and non concessional lending poverty reduction and growth facility (PRGF) stand by arrangments (SBA) extended fund facility (EFF) supplement reserve facility (SRF) contingent credit lines (CCL) compensatory financing facility (CFF) emergency assistance special drawing rights the international bank for reconstruction and development world bank international finance corporation international development assiciation (IDA) the bank for international settlements regional development agencies RBI non performing assets out of order status overdue income recognition reversal of income appropriation of recovery in NPA NPA sub standard Assets subtful assets loss assets account with temporary deficiancies upgradation of loan accounts classified as NPA account regularised near about the balance sheet date agricultural advances government guaranteed advances restructuring rescheduling of loans upgradation of restructured accounts corporate debt restructuring (CDR systems) CDR stand still clause category 2 CDR system projects under implementation

93 93 93 93 94 96 98 99 99 99 100 102 102 103 104 104 109 109 113 113 114 114 114 114 114 114 114 115 115 115 116 116 116 119 120 121 121 121 122 122 122 123 124 124 124 125 125 126 128 128 130 131 131 138 139 142

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 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 rural infrastructure developments fund (RIDF ) common guidelines for priority sector advances application forms mode of disbursement of loan repayment schedule rates of interest penal interest inspection charges insurance against fire and other risks other charges photographs of borrowers discretionary powers machinery to look into complants amendments

178 180 183 183 184 184 184 185 185 185 186 186 186 186 186

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

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