Sample Questions and

Answers
Multiple Choice

Question 1
Which of the following instruments is used
by public to directly lend to the
Government?
(a) Bank Deposits
(b) Public Provident Fund
(c) T-Bills
(d) Certificates of Deposit

Question 2
Inter-bank term money refers to borrowing
among banks for
(a) Overnight
(b) Two days
(b) More than 14 days
(c) Less than 14 days

Question 3
Certificates of Deposits have to be of a
minimum value of
(a) Rupees 1 lakh
(b) Rupees 10 lakh
(c) Rupees 25 lakh
(d) Rupees 1 crore

Question 4
Commercial paper can be issued
(a) By all corporates
(b) By all corporates with net worth of at
least Rs. 10 crores
(c) By all corporates with net worth of at
least Rs. 5 crores
(d) Can be issued only by banks

Question 5

Commercial Bills market is a part of

(a) Organised money market
(b) Unorganised money market
(c) Stock market
(d) None of the above

Question 6
Which of the following statements is not
true?
(a) Call money market deals with overnight
loans
(b) As special cases, few FIs like LIC, UTI
can borrow in the call money market
(c) Call loans are made on a clean basis
(d) Is a part of organised money market

Question 7
A scheduled commercial bank is one:
(a) Which is included in the Second
Schedule of the RBI Act 1934
(b) Which is included in the Banking
Regulation Act, 1949
(c) Both (a) and (b)
(d) None of the above

Question 8

Indigenous bankers are regulated by

(a) Reserve Bank of India
(b) Ministry of Finance
(c) Registrar of Co-operative Societies
(d) None of the above

Question 9
What is approximately the population size
served by a branch currently?
(a) 15,000
(b) 25,000
(c) 35,000
(d) 65,000

Question 10
What is the current SLR requirements of
banks?
40% of the deposits
25% of the deposits
31% of the deposits
28% of the deposits

Question 11
What is the CRR effective from August 4,
2007?
5.5%
6.0%
6.5%
7.0%

Question 12
What is the stipulated share of the priority
sector in the net bank credit?
35%
20%
40%
45%

Question 13
Mutual funds are regulated by
(a) Association of Mutual Funds of India
(AMFI)
(b) Securities and Exchange Board of
India (SEBI)
(c) Reserve Bank of India
(d) None of the above

Question 14
A growth fund is
(a) One in which the money is invested in
equities
(b) One in which the money is invested in
government bonds
(c) One in which the money is invested
equally in equity and bonds
(d) Money is invested only in money
market instruments

Question 15

ARCIL is an example of
(a) A financial institution
(b) A mutual fund
(c) An asset management company set up
to acquire NPAs of banks
(d) A discount and financing house