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Program Name: PGDBA

Subject: Financial Institutions and Banking
Assessment Name: FIB - Exam
Weightage: 70
Total Marks: 70
Duration: 80 mins

Online Examination:

Online examination is a Computer based examination.

Online examination comprises of Total 29 Questions - Out of 70 marks.

Duration of online examination will be of 1 Hour 20 minutes (80 minutes).

Section - I Instructions:

- It is compulsory and has total 3 Subjective Questions.

- Students are required to solve any 2 Subjective Type Questions. Each question is of 5 marks.
- Section – I is out of 10 Marks.

Please refer following instructions regarding Subjective examination:

- While attempting subjective examination Text formatting facility will be disabled such as use of bullets,
making the text bold, underlining the text etc. Only normal character on the key board will be available.
- Special characters available on the keyboard will be allowed.
- Students can not attempt more than 2 questions out of given 3.
- A blank (space typed) or any entry in the space provided will be considered as question is answered.
- Hand written answers are not allowed. Subjective test can be answered by using key board.
- No brail support shall be provided, but writer assistance shall be allowed. The student has to intimate it to
SCDL well in advance by completing applicable formalities.
- Answers for both the questions should not exceed more than 110 words. The maximum word limit per
answer is 55 words (for Subjective part).

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1) Write a note on Industrial credit and investment corporation of India (ICICI).


ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of the Indian industry. The principal objective was to create a developmental financial
institution for providing medium-term and long-term project financing to Indian businesses. Until the late
1980s, ICICI primarily focused its activities on project finance and providing long-term funds to a variety
of industrial projects. With a thrust on marketing the products and attracting the client with top class
service, it has become a household name in the life of any Indian today.

2) Explain the functions of Power Finance Corporation (PFC).


PFC's mission is to excel as a pivotal developmental financial institution, in the power sector committed to
the integrated development of power and associated sectors, by channeling the resources and providing
financial, technological and managerial services for ensuring the development of economic, reliable and
efficient systems and institutions.

3) What is meant by Non-Banking Financial Intermediaries?


Non-bank finance companies include a variety of financial institutions, which raise funds from the public
directly or indirectly to lend them to the ultimate borrowers. The development banks fall in this category.
They specialise in making term loans. There are three other NBFI, viz. LIC, GIC and UTI. Out of these
three, only UTI is a pure NBFI. There are provident funds and post offices, which mobilise savings in a
big way. A large number of these institutions are public sector undertakings.

Section 1 is complete.

Please click on "Next" button to proceed.

Section - II Instructions:

- It comprises of Objective Questions Only.

- Total 60 marks are allotted for objective type questions.
- The objective questions are of following type and carries marks as given under.

Multiple Choice Multiple Response : 4 Questions - 16 Marks (Each 4 marks)

Multiple Choice Single Response : 9 Questions - 18 Marks (Each 2 marks)
True or False : 5 Questions - 5 Marks (Each 1 mark)
Select a Blank : 5 Questions - 5 Marks (Each 1 mark)
Match the Column : 4 Questions - 16 Marks (Each 4 marks)

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Total Questions : 27
Total Marks : 60

1) Match the Following

1] Repos and Reverse Repos 1] Repurchase
2] Futures, Options and Swaps 2] Derivatives
3] Global Depository Receipts (GDR) 3] Capital markets
4] Zero Coupon Bonds 4] Debt markets
5] Funds transfer
6] Portfolio Management

2) RBI performs the function of financial supervision under the guidance of

1] the Board for Financial Supervision
2] the Board for Economic Supervision
3] the Central Government
4] the finance ministry of India

3) All the official directors of Reserve Bank of India are not full-time directors.
1] True
2] False

4) The number of regional offices of RBI in the country is :BLANK .

1] 22
2] 23
3] 25
4] 27

5) Exim Bank extends Lines of Credit to

1] overseas banks, FIs and sovereign governments
2] overseas banks and sovereign governments
3] sovereign governments only
4] overseas customers

6) Agricultural Finance Corporation Limited's headquarters are located at :BLANK .

1] Mumbai
2] New Delhi
3] Chandigarh
4] Chennai

7) HUDCO sanctions housing loans to the extent of


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1] 60% of the cost of house and maturity period of 8 to 10 years

2] 70% of the cost of house and maturity period of 5 to 8 years
3] 80% of the cost of house and maturity period of 8 to 10 years
4] 75% of the cost of house and maturity period of 10 to 12 years

8) The National Co-operative Development Corporation (NCDC) was established in :BLANK .

1] 1963
2] 1964
3] 1964
4] 1975

9) On securitisation, the mortgage debt or the receivables pertaining to the MBS transaction will be
1] legally transferred to the NHB/ SPV Trust
2] legally assigned to the NHB/ SPV Trust
3] legally transferred to the primary lending agency
4] legally assigned to the primary lending agency

10) Irrespective of whether a bank finds its name in the schedule to the RBI Act its 'scheduled status' can be
found out from
1] its banking licence
2] the number of branches it has
3] its all India presence
4] its total banking business

11) The balances in the savings bank account earn interest whereas the balances in current account
1] do not earn interest
2] do not earn high interest
3] are charged interest
4] are charged commission

12) Operating income for a bank is the income earned from :BLANK operations.
1] lending
2] inter-bank
3] investment
4] inter-branch

13) Reserve Bank of India, the central banking authority in the country, is also referred to as the :BLANK
1] Apex
2] Government
3] Monitoring
4] Statutory

14) The money markets can be sub-divided into

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1] organised markets and unorganised markets
2] regulated markets and unregulated markets
3] domestic markets and foreign markets
4] national markets and international markets

15) For DFIs, they can issue privately placed bonds at any time to any investor with the only restriction being
1] the ceiling defined by the shareholders of DFI
2] the ceiling defined by the bankers of DFI
3] the ceiling defined by the ministry of finance
4] the ceiling defined by the Companies Act

16) The main traded instruments in the money market are completely secured instruments.
1] True
2] False

17) Match the Following

1] LAO 1] Letter of Allotment
2] SGL 2] Subsidiary General Ledger
3] OMO 3] Open Market Operations
4] SPN 4] Secured Premium Notes
5] Subsidiary General Loan
6] Operating Market Operations

18) Nidhis are not commercial institutions and are broadly run on co-operative principles.
1] True
2] False

19) The development financial institutions were set up to

1] provide funds for capital formation and long term projects
2] provide funds for small scale industrial units
3] provide funds to central and state governments
4] provide funds for export processing zones

20) Match the Following

1] DICGC 1] Deposit Insurance & Credit Guarantee Corporation
2] IDRBT 2] Institute for Development Research in Banking Technology
3] BRBNMPL 3] Bharatiya Reserve Bank Note Mudran Private Limited
4] CAB 4] College of Agricultural Banking
5] Bharatiya Reserve Bank National Mudran Private Limited
6] Confederation of Agricultural Bankers

21) Land Development Banks suffer from the defects of the co-operative movement namely

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1] inadequate and improper project appraisal, monitoring and evaluation

2] corruption and excessive dependence on funds from outside sources
3] inadequate and improper infrastructure
4] inadequate and improper support from state and central governments

22) Agricultural Finance Corporation Limited's area of specialisation includes forestry consisting of
1] Commercial and Social Forestry, Agro Forestry
2] Forest Management and Wasteland Development
3] Conservation and Supervision of Forests
4] Deforestation for Agricultural Purposes

23) Regional Rural Banks are not eligible for obtaining NABARD refinance for loans given by them to
farmers for seasonal agricultural operations.
1] True
2] False

24) Match the Following

1] SCB 1] State Co-operative Bank
2] DCCB 2] District Central Co-operative Bank
3] PACS 3] Primary Agricultural Credit Society
4] PCARDB 4] Primary Co-operative Agriculture and Rural Development Bank
5] Primary Agricultural Co-operative Society
6] Primary Credit Agriculture and Rural Development Bank

25) Eligibility criteria for HFC's for being eligible for NHB's Guarantee include
1] The HFC should provide long-term finance to home loan seekers
2] The HFC should have been in business for minimum 5 years
3] The HFC should have obtained 4 star rating form rating agencies
4] The HFC's should not have any non-performing advances

26) The idea of issuing inflation linked bonds by RBI is that

1] the uncertainty of future inflation rates is removed from the minds of investors
2] the real value of invested capital is maintained
3] the uncertainty of future inflation rates to be planted the minds of investors
4] the real value of donations is maintained

27) Buffer Stock Financing Facility of IMF makes available resources to finance contributions to the
approved buffer stock scheme.
1] True
2] False

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Section 2 is complete.

Please click on "Next" button to proceed.

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