PRESENTS

1. In terms of Section 31 of the Reserve Bank of India (d) Participation certificates

Act, 1934 a demand draft payable to bearer may be (e) None of the above
issued only by _______? 6. The Definition of ‘Banking’ is given in
(a) Nationalized Banks (a) Negotiable Instrument Act, 1881
(b) Scheduled Commercial Banks (b) RBI Act, 1934
(c) Reserve Bank of India (c) The Banking Regulation Act, 1949
(d) Foreign Banks (d) Contract Act
(e) None of the above (e) None of the above
2. In case of original demand draft is presented after 7. When was SBI established?
the duplicate has already been paid, the bank will (a) April 1, 1935 (b) July 31, 1969
_______? (c) May 5, 1955 (d) July 1, 1955
(a) Pay the original demand draft
(b) Pay the original demand draft as well and 8. Presently, the number of the public sector banks in
recover the amount from the purchaser on the India is
strength of the indemnity bond (a) 8 (b) 20 (c) 27
(c) Return with remarks “Draft reported lost, (d) 14 (e) None of the above
duplicate already paid will pay on collecting bank’s 9. Which of the following banks are not commercial
guarantee. In case the original draft is again banks?
presented, it should be honoured.” (a) Foreign Banks
(d) Return with the remarks payment stopped by (b) State Co-operative Banks
the payee (c) Private Banks
(e) None of the above (d) Regional Rural Banks
3. Collateral securities can be _______? (e) None of the Above
(a)Tangible 10. Regional rural banks are managed by ______?
(b) Intangible in the shape of personal guarantee (a) The Central Government
of a third party (b) The RBI
(c) None of the above (c) The Board of Directors
(d) Both of the above (d) The State Government
4. The Central Bank in India is ______? (e) None of the above
(a) The Reserve Bank of India 11. Appellate Tribunal for recovery of debts due to
(b) The State Bank of India banks and financial institutions is set up at _____?
(c) The Andhra Bank (a) Chennai (b) Bangalore
(d) Central Bank of India (c) Mumbai (d) Kolkata
(e) None of the above (e) None of the above
5. Stock exchange securities do not include?
(a) Debentures certificate
(b) Small debentures issued by port trusts
(c) Government promissory notes
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 (c) The percentage of total cash money received as
deposits by banks
(d) All the above (e) None of the above
17. Lead Bank Scheme was introduced in ______?
(a) 1965 (b) 1969 (c) 1981
(d) 1992 (e) None of the above
18. A rise in the reserve ratio of banks ______?
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the
money supply
(c) Will lead to a decrease in the money supply
(d) Will have no impact on money supply
(e) None of the above
19. In the case of FCNR accounts the payment of
interest is effected in ______?
(a) Indian Rupee (b) Only in Pound (£)
(c) Same currency in which deposit stands
(d) Yen (e) None of above
12. Many a times we read about Special Drawing 20. Banks are required to maintain SLR under ____?
Rights (SDR) in newspapers. As per its definition, (a) Section 24 of the Banking Regulation Act
SDR is a monitory unit of reserve asset of which (b) Section 49 of the Banking Regulation Act
the following organization/agency? (c) Section 24 of RBI Act
(a) World Bank (d) None of the above
(b) International Monitory Fund (IMF) 21. CRR is required to maintain in the form of _____?
(c) Asian Development Bank (ADB) (a) Approved Government Securities
(d) Reserve Bank of India (RBI) (b) Cash with RBI (c) Cash with bank
(e) None of the above (d) All the above (e) None of the above
13. As per recent newspaper reports, RBI is 22. In which of the Acts, specimen of the cheque, bill,
considering the grant of license to some new promissory note is given?
companies, particularly NBFCs, to act as full- (a) Negotiable Instruments Act
fledged Banks. Which of the following will be (b) Banking Regulation Act
considered as NBFC? (c) Mercantile Law
(a) NABARD (d) None of the above
(b) Life Insurance Corporation of India (e) All the above
(c) Reliance Capital 23. Which of the following negotiable instruments can
(d) SEBI be crossed to the banks?
(e) None of the above (a) Cheques (b) Drafts
14. Presently which Indian bank has the largest (c) Bills of Exchange (d) All the above
number of foreign branches? (e) None of the above
(a) SBI (b) Canara Bank 24. Which of the following can be issued payable to
(c) Bank of Baroda (d) Bank of India bearer?
(e) None of the above (a) Cheque (b) Draft
15. Under which of the following methods of note- (c) Bill of Exchange
issue the RBI issues notes? (d) Demand Promissory Notes
(a)Fixed Fiduciary System (e) None of the above
(b) Maximum Fiduciary System 25. Crossing denotes _____?
(c) Minimum Reserve System (a) Cheque cannot be transferred by the payee.
(d) Proportional Reserve System (b) A direction to the paying bank to pay the
(e) None of the Above Cheque through a bank.
16. Cash deposit ratio means ______? (c) Cheque will be paid through clearing only.
(a) The percentage of cash-in-hand-balance (d) Not payable across the counter but will be
with the Central Bank to the aggregate deposits credited to the account of the holder.
(b) The percentage of total deposits received by (e) None of the above
Banks

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26. FCNR accounts can be opened and maintained as (c) An instrument in the form of Depository
_____? Receipt created by an Indian Depository
(a) Current Accounts against underlying equity shares of the issuing
(b) Saving Banks Accounts company
(c) Term Deposit Accounts (d) An instrument in the form of deposit receipt
(d) Recurring Deposits issued by an Indian Depository
(e) None of the above (E) None of the Above
27. Various banks in the country have installed
machines which disburse money to general public.
These machines are called ____?
(a) Coin Dispensing machine
(b) A T M
(c) Debit card machine
(d) Ledger machines
(e) None of the above
28. A ‘Not-negotiable’ crossing is a _____?
(a) General crossing (b) Special crossing
(c) Restricted crossing
(d) Non-transferable crossing
(e) None of the above
29. Which of the following is the Statutory Liquidity 34. Fiscal deficit means _____?
ratio (SLR), at present? (a) Total income less Govt. borrowings
(a) 10% (b) 21.5% (c) 20% (b) Total payments less total receipts
(d) 24% (e) 33% (c) Total payments less capital receipts
30. RBI’s open market operation transactions are (d) Total expenditure less total receipts
carried out with a view to regulate _____? excluding borrowings
(a) Liquidity in the economy (e) None of the above
(b) Prices of essential commodities 35. Interest on the savings bank accounts is
(c) Inflation compounded ____?
(d) Borrowing powers of the Bank (a) Monthly (b) Yearly
(e) All of the above (c) Quarterly (d) Half-yearly
31. Under Open market operations, one of the (e) All of the above
measures taken by the RBI in order to control 36. The Head of Reserve Bank of India is?
credit expansion in the economy, does ____? (a) Chief Executive Officer
(a) Sale and purchase of Govt. securities (b) Managing Director
(b) Issuance of different type of Bond (c) Chief Banking Officer
(c) Auction of Bond (d) Dy. Governor
(d) To make available direct finance to Borrowers (e) None of the above
(e) None of the above 37. Who supplies interest-charts for different
32. Bank rate means _____? maturities and for different rates of interest?
(a)Rate of interest charged by commercial Banks (a) IBA (b) RBI
from borrowers (c) Government of India
(b) Rate of interest at which commercial banks (d) IBRD (e) None of the above
discounted bills of their borrowers 38. Rates of Interest on deposits are determined by
(c) Rate of interest allowed by commercial Banks ____?
from on their depositors (a) IBA (b) Ministry of Finance
(d) Rate at which RBI purchases or re- (c) The Bank Itself
discounts Bills of Exchange of commercial (d) Government of India
Banks (e) None of the above
(e)None of the above 39. Current account becomes dormant when there are
33. What is an Indian Depository Receipt (IDR)? no withdrawals for the last _____?
(a) A deposit account with a Public sector Bank (a) 3 months (b) 6 months (c) 24 months
(b) A deposit account with any of the Depositories (d) 12 months (e) None of the above
in India

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40. Which of the following may be adjudged as 48. What measure RBI usually takes to control
insolvent? Inflation in India?
(a) Minor (b) Married woman (a)RBI decrease the Repo Rate
(c) Firm (d) Lunatic (b) RBI ask the Central Government to increase the
(e) None of the above Repo Rate
41. A cheque becomes stale after _____? (c) RBI cancels the option of Repo Rate
(a) 2 months (b) 3 months (c) 6 months (d) RBI declares Repo Rate as Zero Percent
(d) 12 months (e) None of the above (e) RBI increase the Repo Rate
42. Bank conducts Government business at its 49. Reverse Repo Rate means that _____?
branches as an agent of _____? (a) the rate at which RBI borrows money from
(a) RBI (b) SBI Central Government.
(c) Government of India (d) State Government (b) the rate at which state governments borrows
(e) None of the above money from banks.
43. Foreign exchange Reserves of India are kept in the (c) the rate at which RBI borrows money from
custody of ______? banks.
(a) World Bank (d) the rate at which RBI borrows money from
(b) International Monetary Fund State Government.
(c) Prime Minister Rahat Kosh (e) the rate at which RBI borrows money from
(d) Reserve Bank of India World bank.
(e) None of the above 50. Gilt-edged securities are _____?
44. Which of the following Apex body and Regulator (a) Shares of a private limited company
has asked banks to swap customer related (b) First-class Government securities
information so that the frauds and Defaults may be (c) Shares of a company
prevented? (d) All of the Above
(a) Bombay Stock Exchange (e) None of the above
(b) Indian Banks’ Association 51. Certificate of Deposits can be issued for a
(c) Securities & Exchange Board of India maximum period of _____?
(d) Reserve Bank of India (a) 45 days (b) 3 months (c) 6 months
(e) None of the Above (d) 1 year (e) None of the above
45. What is meant by Repo Rate? 52. As per the news reports, India is reported to be
(a)At what rate of interest banks offer the funds to number two in getting “PE”. What is the full form of
Reserve Bank of India. “PE” as used in the financial world?
(b) At what rate of interest World Bank offer the (a) Professional & Eco-friendly
funds to Central Government for not less than the (b) Profitable Equity
period of 364 days. (c) Profitable & Economical
(c)At what rate of interest banks borrow the (d) Private & Economy
funds from Reserve Bank of India for short (e) Private & Economical
term. 53. Currency notes printed that are deposited in the
(d) At what rate of interest banks borrow the funds currency chest are the property of ______?
from the other banks for long term. (a) Respective bank (b) RBI
(e)At what rate of interest central government (c) SBI (d) Government of India
barrow the funds from the other banks for long (e) Respective State Government
term. 54. Which of the following notes cannot be exchanged?
46. At present, the Repo Rate is ____? (a) Solid notes (b) Mismatched notes
(a) 6.75 percent (b) 8.25 percent (c) Mutilated notes (d) All the above
(c) 7.00 percent (d) 9.00 percent (e) None of the Above
(e) 8.00 percent 55. Daily operations on the currency chest are advised
47. If the Repo Rate increases by Reserve Bank of to ______?
India, rate of interest of the loans offered by the (a) RBI (b) Concerned bank
banks _____? (c) Main branch of the district
(a) Decrease (b) Become Zero (d) Through link branch to RBI
(c) Become 100 percent (d) Increase (e) All of the above
(e) None of the above 56. Spurious coins detected at the counter are sent to
______?

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 (a) Mint (b) Government of India (a) Transferability (b) Negotiability
(c) RBI (d) IBRD (c) Neither transferability nor negotiability
(e) None of the above (d) Both transferability and negotiability
57. Signature on Re. 1 note is made by the Finance (e) None of the above
Secretary but on the other notes by _____? 67. An order cheque can be converted into a bearer
(a) Prime Minister (b) President of India cheque by means of ________?
(c)Governor of Reserve Bank of India (a)Sans recourse endorsement
(d) Finance Minister (e) None of the above (b) Special endorsement
58. On a cheque instead of two parallel lines only (c) Blank endorsement
bank’s name is written. It is a _____? (d) Sans frais endorsement
(a) General crossing (b) No crossing (e) None of the above
(c) Payable to bearer (d) Special crossing 68. In Banking parlance, “Sub-Prime” refers to _______?
(e) None of the Above (a) Lending by Banks at rates below PLR
59. Which of the following acts as the Regulators for (b) Funds raised by banks at sub-LIBOR rates
the Credit Rating Agencies in India? (c) Group of banks which are not rated as Prime
(a) RBI (b) SBI (c) SIDBI Banks as per Bankers’ Almanac
(d) SEBI (e) ARCIL (d) Lending done by Banks/Fls to customers
60. The Branding line of “Bank of Baroda” is ______? not meeting with normally required credit
(a) International Bank of India appraisal standards
(b) India’s International Bank (e) None of the above
(c) India’s Multinational Bank 69. “Federal Reserve” is the Financial Organization of
(d) World’s Local Bank ______?
(e) None of the above (a) The USA (b) The UK (c) UAE
61. The logo of Bank of Baroda is known as ______? (d) France (e) Japan
(a) Sun of Bank of Baroda 70. A charge where there is neither the transfer of
(b) Baroda Sun ownership nor the possession is called ______?
(c) Bank of Baroda’s rays (a) Hypothecation (b) Lien
(d) Sunlight of Bank of Baroda (c) Pledge (d) Mortgage
(e) None of the above (e) None of the above
62. One of the major challenges faced by the Banking 71. These days Banks are offering Loans against
Industry is Money Laundering. Name the Property? Under which business segment, this
Act/Norms launched by the banks to curb Money activity may be categorized?
Laundering, in general? (a) Corporate Banking
(a) Know your customer norms (b) Personal Banking
(b) Banking Regulation Act (c) Merchant Banking
(c) Negotiable Instrument Act (d) Portfolio Management-Services
(d) Narcotics and Psychotropic Act (e) None of the above
(e) None of the Above 72. What do we mean by “ECB” in financial terms?
63. Lots of banks in India offer M-Banking facility to (a) Essential Commercial Borrowings
their customers. What is the full form of “M” in it? (b) Essential Credit & Borrowings
(a) Money (b) Marginal (c) Massage (c) External Credit & Business
(d) Mutual fund (e) Mobile (d) External Commercial Borrowings
64. A cheque which is not crossed is called _______? (e) None of the above
(a) Open cheque (b) Bearer cheque 73. “Currency Swap” is an instrument to manage ____?
(c) Uncrossed cheque (d) Order cheque (a) Currency Risk
(e) None of the above (b) Interest Rate Risk
65. The safest form of crossing is ______? (c) Currency and Interest Rate Risk
(a) Account payee crossing (d) Cash Flows in different currencies
(b) General crossing (e) All of the above
(c) Special crossing 74. “Plastic Money” denotes ________?
(d) Double crossing (a) Bearer cheque (b) Credit card
(e) None of the above (c) Demand Draft (d) Traveller’s cheque
66. A not negotiable crossing restricts what of the (e) Gift cheque
cheque ________?

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75. RBI has recently introduced Cheque Truncation 81. The minimum acceptable amount under the
System, which means that ______? Certificate of Deposit is ____?
(a) Physical movement of a cheque is stopped (a) Rs. 1 lakhs (b) Rs. 10 lakhs
between banks and instead an electronic image (c) Rs. 20 lakhs (d) Rs. 25 lakhs
be exchanged for clearance of funds (e) None of the above
(b) The physical movement of a cheque for 82. Banks are promised to grant loans against
clearance of funds be made more secure certificates of deposits _____?
(c) Issue of cheques to customers be made more (a)Yes (b) No
secure by introducing more enhanced security (c) Yes, only to NRI
features (d) Yes, only up to 50% of the face value
(d) A new technology to process payments (e) None of the above
between Banks exclusively 83. Commercial paper may be issued for a period of
(e)None of the Above ____?
76. To define a bank, the basic functions of a bank (a) 90 days (b) 91 to 180 days
would be? (c) 181 days to one year (d) 7 days to 1 year
(a) Accepting Deposits (b) Social Upliftment 84. The Stock Exchange Board of India was set up by a
(c) Lending Funds (d) Both a and c Special Act in ____?
(e) All of the above (a) 1988 (b) 1989 (c) 1987
77. The term “Floating Rupee” means _____? (d) 1990 (e) None of the above
(a)Limited Convertibility of Rupee 85. Demand deposits mean _____?
(b) Removal of all controls on cross- (a) Deposits which can be on demand by the
movement of Foreign exchange on capital depositor
account (b) Current deposits (c) Fixed deposits
(c) Removal of all controls on cross-movement of (d) Short deposits (e) None of the above
Foreign exchange on Trade & Services 86. What is Call Money”?
(d) Removal of controls on cross-movement of US (a) Money borrowed and lent for overnight or a
Dollar against Indian Rupee on US- India day
Trade (b) Money borrowed for more than a day but
(e) None of the Above upto 3 days
78. The DICGC covers Bank Deposits under its Deposit (c) Money borrowed for more than a day but
Insurance Scheme of the commercial banks and upto 7 days
includes _______? (d) Money borrowed for more than a day but
(a) Foreign Banks operating in India, upto 14 days
(b) Regional Rural Banks (e) None of the above
(c) Co-operative Banks 87. Time deposits means _____?
(d) Urban Co-operative Bank (a) The deposits which are deposited in a
(e) All of the Above bank for a fixed period
79. Under the provisions of Section 16(1) of the DICGC (b) Time deposits include overdue fixed deposits
Act, the insurance cover available to the Depositors (c) Time deposits do not include recurring
of a bank “in the same right and in similar deposits as well
capacity” at all the Bank branches of a bank put (d) Time deposits do not include deposits under
together is ______? Home Loan Account Scheme
(a) Rs. 2,000 (b) Rs. 25,000 (e) None of the above
(c) Rs. 100,000 (d) Rs. 500,000 88. Fixed deposits are for the bank ____?
(e) None of the above (a) Demand liability (b) Fixed asset
80. Certificate of Deposit can be issued by _____? (c) Time liability (d) None of the above
(a) Reserve Bank, NABARD and Exim Bank only (e) None of the above
(b) Commercial banks and term lending 89. The Negotiable Instruments Act deals with ____?
institutions (a) Cheques, demand drafts, banker’s cheques
(c) Scheduled commercial banks excluding regional (b) Promissory notes, bills of exchange and
rural banks cheques
(d) All the above (c) Bills of exchange, Cheques and demand
(e) None of the above drafts

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 (d) Cheques, demand drafts and saving bank (d) All the above
withdrawal forms (e) None of the above
(e) None of the above 95. The Export-Import Bank of India was set up in
______?
(a) July 1969 (b) April 1970
(c) January 1982 (d) April 1982
(e) None of the Above
96. Exim Bank also provides ______?
(a) Refinance facilities
(b) Consultancy and technology services
(c) Services of finding foreign markets for
exporters
(d) All the above
97. Exim Bank concentrates on ______?
90. “Muhammad Yunus” is associated with Banking (a) Medium-term financing
Industry and is acclaimed for his contribution in (b) Short-term financing
the field of ____? (c) Short and medium-term financing
(a) Micro-finance (d) Short and long-term financing
(b) Technological advancement (e) None of the above
(c) Consumer finance 98. The Regional Rural Banks were set up in _____?
(d) Banking Reforms in Bangladesh (a) January 1, 1975 (b) March 11, 1975
(e) Low-cost housing (c) April 1, 1975 (d) October 2, 1975
91. A NBFC is prohibited to offer or undertake _____? (e) None of the above
(a) accept demand deposits 99. Regional Rural Banks were set up under _____?
(b) accept time deposits (a) Reserve Bank of India Act
(c) Lend long term loans (b) Regional Rural Banks Act, 1976
(d) Pay a higher rate of interest on deposits as (c) NABARD Act
compared to Banks (d) None of the above
(e) None of the Above 100. Regional Rural Banks are classified under _____?
92. Small Industries Development Bank of India is (a) Land Developments Banks
wholly subsidiary of _____? (b) Co-operative Banks (c) Commercial Banks
(a) RBI (b) Exim Bank (c) NABARD (d) Public Sector Banks (e) None of the Above
(d) IDBI (e) None of the above 101. The chairman of Regional Rural Bank is appointed
93. Small Industries Development Bank of India’s by _____?
Single Window scheme means that a borrower is (a) State Government
granted _____? (b) Reserve Bank of India
(a) Both term loan for fixed assets and loan (c) Central Government
for working capital through the same (d) Sponsoring bank in consultation with
agency, namely, SFCs or Commercial Banks NABARD
(b) Both term and working capital through SIDBI (e) None of the above
itself 102. Which of the following is not a measure to control
(c) Both term loan and working capital through inflation as adopted by Govt. of India and/or RBI?
IDBI (a)Monetary Policy (b) Fiscal Policy
(d) None of the above (c) Financial Inclusion (d) Price control
93. NABARD provides refinance to ______? (e) Bank Rate Policy
(a) Scheduled commercial banks 103. Current accounts are meant and useful for _____?
(b) Co-operative banks (a) Investment purposes
(c) Regional rural banks (b) Identity purposes
(d) All the above (c) Savings purposes
(e) None of the above (d) Day-to-day business needs
94. NABARD provides refinance assistance for ______? (e) Operational convenience
(a) Promotion of agriculture 104. A _____ card is basically a payment mechanism
(b) Promotion of small scale industries which allows the holder to make purchase without
(c) Cottage and village industries
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 any immediate cash outflows either physically or (b) A limited amount of Rupee can get converted
through his accounts? into other approved currencies, without any
(a) Debit (b) Smart (c) Credit legal complications or any questions asked
(d) ATM (e) Kisan Credit about the purpose.
105. What do we mean by “Demat Accounts” in the (c) A limited amount of foreign currency can get
financial markets in India? converted into Indian Rupee and be kept in a
(a) an account which is opened by the people of foreign currency Bank deposit, without any
the lower income group of society legal complications or any questions asked
(b) an account in which trading of shares is about the purpose.
done (d) None of the Above
(c) an account, which can be opened only by the 113. Which of the following is/are true about the “Sub-
Minors Prime Crisis”- term which was in the news
(d) an account, of the nature of Current account, recently?
which can be opened only by the Corporate (1) It is a Mortgage crisis referring to Credit
Houses default by the borrowers.
(e) None of the above (2) Sub-Prime borrowers were those borrowers
106. The ‘monetary base for credit expansion’ consists who were rated low and were high risk
of _____? borrows.
(a) The total value of ‘high-powered money’ (3) This crisis originated out of negligence in
(b) The demand and time deposit liabilities credit rating of the borrowers.
(c) The size of the deficit in the government’s (a) Only 1 (b) Only 2 (c) Only 3
budget (d) All of the above (e) None of the above
(d) All of these (e) None of the above 114. Commercial banks influence money supply
107. Pledge of advance is made against _____? through ____?
(a) Gold (b) Commodities (a) Printing of one rupee notes
(c) Coins and notes (d) All the above (b) Augmentation of savings and time deposits
(e) None of the above (c) Provision of high denomination notes
108. Industrial co-operatives covered under SSI can (d) Creation of demand deposits
raise loan without ceiling. The loan will be (e) None of the above
refinanced by ____? 115. Minimum cash reserves fixed by law constitute
(a) IDBI (b) RBI (c) NABARD ____?
(d) DICGC (e) None of the above (a) A percentage of aggregate deposits of the
109. Which bank does not belong to State Bank Group? bank
(a) State Bank of Indore (b) A %age of aggregate loans and advances of
(b) Banaras State Bank the bank
(c) State Bank of Bikaner and Jaipur (c) A %age of capital & reserves of the bank
(d) State Bank of Patiala (d) All of the above is correct
(e) None of the Above (e) None of the above is correct
110. CBS stand for? 116. An increase in bank rate, other things being equal,
(a) Centralised banking system will result into ____?
(b) Computer based Solution (a) A decline in the cost of credit including
(c) Core banking Solution greater and the demand for borrowing
(d) Customised banking Solution (b) An increase in the cost of credit
(e) None of the Above discouraging demand for credit
111. Which of the following would fall under Retail (c) No change in the cost of credit and the
Banking? demand for borrowing
(a) Home Loan (b) Vehicle Loan (d) Cost of credit has no relationship with
(c) Credit cards (d) Mutual Funds demand for borrowing
(e) All of these (e) None of the above
112. Convertibility of Rupee means _____? 117. Intangible assets are _____?
(a) Any amount of Rupee can get converted (a) Gold
into other approved currencies, without (b) Patents, copyright, goodwill
any legal complications or any questions (c) Home (d) All the above
asked about the purpose. (e) None of the above

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118. The Banking Regulations Act, 1949 was enacted to (e) None of the above
_____? 125. Who are the Regulators for Regional Rural Bank?
(a) Nationalise the banks (a) Reserve Bank of India (b) NABARD
(b) Open regional rural banks (c) SIDBI (d) Both A and B
(c) Consolidate and amend the laws relating (e) None of the above
to banking companies 126. Reserve Bank of India Act, 1934 was enacted on
(d) Inviting foreign banks the recommendations of _____?
(e) None of the above (a) The James Raj Commission
119. The Banking Regulation Act was implemented on (b) The Hilton Young Commission
______? (c) The Banking Commission, 1993
(a) September 6, 1949 (b) April 1, 1949 (d) The President of India
(c) March 10, 1949 (d) March 31, 1949 (e) None of the above
(e) None of the above 127. The term “Bancassurance” means ______?
120. The fourteen banks were nationalized on _____? (a) Assurance of quality services by the Bank
(a) July 19, 1969 (b) June 1, 1969 (b) Selling of Insurance products by Banks
(c) June 16, 1969 (d) July 1, 1969 (c) Selling of Third party Mutual Funds Products
(e) None of the above (d) Selling of Add-on Banking Services
121. The banks were nationalised with the motive to (e) Selling of Credit Cards
______? 128. RBI was established on ___________.
(a)Develop the country economically (a) April 1, 1925 (b) April 1, 1935
(b) Give priority to neglected sectors and exports (c) April 1, 1945 (d) April 1, 1955
(c) Extend finances to weak and backward areas 129. Which among the following does the RBI not
(d) All the above (e) None of the above decide?
122. The remaining six banks were nationalised on (a) CAR (b) CRR
______? (c) Base Rate (d) Bank Rate
(a) April 15, 1980 (b) April 5, 1980 130. What does ‘T’ in RTGS stand for?
(c) April 1, 1980 (d) April 1, 1982 (a) Transaction (b) Transfer
(e) None of the above (c) Tax (d) Time
123. The six more banks which were nationalized had 131. In banking, IFSC code stands for_________________.
demand deposits and liabilities of _____? (a) International Format System Code
(a) Rs. 50 crores or above (b) Indian Function System Code
(b) Rs. 100 crores or above (c) International Forex System Code
(c) Rs. 150 crores or above (d) Indian Financial System Code
(d) Rs. 200 crores or above 132. If a customer does not get a satisfactory
(e) None of the Above response to his grievance from the bank within
_____ days, then he can approach the Banking
Ombudsman.
(a) 60 (b) 90
(c) 30 (d) 15
133. Which of the following organizations is the
Mutual Fund Market regulator?
(a) AMFI (b) SEBI
(c) CIBIL (d) CRISIL
134. Which of the following statements is incorrect
regarding RTGS system?
(a) The transactions take place in real time
(b) The system operates on DNS (Deferred Net
Settlement) basis
124. The main functions of Lead Banks are?
(c) The minimum amount that can be remitted is
(a) Surveying the resources and potential
Rs. 2 lakh
(b) Assisting the small units and small borrowers
(d) Service charges for RTGS transactions vary
and other primary lending agencies
from one bank to another
(c) Maintaining contacts and liaison with
135. _____is the organization that maintains the
government and semi-government agencies
borrower’s history in India.
(d) All the above
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 (a) CRISIL (b) CIBIL (a) Controlling Inflation
(c) CARE (d) RBI (b) Containing instability in long term inter-bank
136. RBI has directed commercial banks to resolve rates
ATM transaction-related complaints within seven (c) Containing instability in the overnight inter-
working days. If a commercial bank is unable to do bank rates
so then it has to pay Rs.____per day as (d) All of the above
compensation. 146. _____________are the beneficiaries of the “Reverse
(a) 50 (b) 100 Mortgage Scheme”.
(c) 200 (d) 225 (a) Government employees (b) Senior citizens
137. RTGS as well as NEFT uses (c) Unemployed persons
(a) UTR Number (b) MICR (c) IFSC (d) DNS (d) Persons of BPL category
138. Which of the following statement is incorrect 147. RBI was nationalized in the year
about SEBI? (a) 1949 (b) 1952
(a) SEBI is a capital market regulator (c) 1955 (d) 1964
(b) SEBI is the mutual fund regulator 148. Which of the following is/are associated with the
(c) SEBI also regulates the credit rating agencies in fiscal policy?
India 1. Marginal Standing Facility
(d) None of them is wrong 2. Devaluation of Currency
139. What does liquidity mean? 3. Market Stabilization Scheme
(a) It means how cash is converted into gold (a) 1 & 2 (b) Only 3
(b) It means how cheaply and quickly an asset (c) 2 & 3 (d) Only 2
is converted into cash 149. ______is the percentage of total deposits of a bank
(c) It means how cash is converted into SDR which it has to keep with itself in the form of liquid
(Special Drawing Rights) assets.
(d) It means how uncertain the money market (a) Statutory Liquidity Ratio (SLR)
conditions are (b) Cash Reserve Ratio (CRR)
140. SWIFT is a commonly used acronym in the banking (c) Statutory Reserve Ratio
industry. The ‘I’ in SWIFT stands for_______. (d) Cash Ratio
(a) Interbank (b) International 150. The exchange rate in India is dependent upon:
(c) Intercom (d) Indian 1. Government policy
141. ________isn’t a method of measurement of National 2. Demand-supply forces
Income. 3. Monetary policy objectives
(a) Value-added method (b) Income method (a) Only 2 (b) 2 & 3
(c) Investment method (c) 1 & 2 (d) 1, 2 & 3
(d) Expenditure method 151. Collateralized Borrowing and Lending Obligation
142. In India, the commercial banks are required to (CBLO) is a/an ________.
provide ____ ___ % of their ANBC (Adjusted Net (a) Money Market Instrument
Bank Credit) to priority sector. (b) Instrument of Monetary Policy
(a) 15 (b) 25 (c) Type of Risk Cover
(c) 35 (d) 40 (d) Stock Market Instrument
143. What does FSDC stand for? 152. Often, we read in newspapers that the RBI has
(a) Financial Security and Development Council changed the Repo rate and the Reverse Repo rate
(b) Financial Stability and Development by a few basis points. What is a basis point?
Council (a) Ten % of one hundredth point
(c) Fiscal Security and Development Council (b) One hundredth of 1
(d) Fiscal Stability and Development Council (c) One tenth of 1% (d) Ten % of 100
144. ___________has been declared the first ‘total banking 153. Banks generally don’t pay interest on money
state’ in India, successfully implementing the total deposited in which of the following accounts?
financial inclusion thereby ensuring banking (a) Savings account (b) Current account
facility to all households. (c) Fixed deposit account (d) None of these
(a) Maharashtra (b) Kerala 154. ‘Fiat Money’ is defined as the money which is
(c) Himachal Pradesh (d) Uttarakhand (a) Accepted internationally
145. RBI has introduced “Marginal Standing Facility” (b) Accepted temporarily in lieu of gold
with the objective of: (c) Issued by keeping gold or silver as deposit

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 (d) Decreed as money by the government
155. Demand-pull inflation can be caused by which of
the following?
(a) A decline in consumption expenditure
(b) A sharp increase in lending rates
(c) A steep decline in income tax
(d) An increase in direct taxation
156. For obtaining which among the following does a
customer not require a bank account?
(a) A loan (b) A cheque
(c) A banker’s draft (d) A credit card
157. RBI isn’t expected to perform the role of
(a) Acting as a clearing house
(b) Working as a banker to the government
(c) Managing forex
(d) Accepting deposits from general public
158. In India, which among the following is/are a part
of Legal Tender Money?
(a) Both coins and currency notes
(b) Both coins and bank drafts
(c) Both currency notes and SDRs
(d) Only currency notes issued by RBI
159. __________is the duty applied by a government to
control the exports of an article of trade, so that
the article of trade can be used by the local
markets rather than in foreign countries.
(a) Customs duty (b) Excise duty
(c) Anti-dumping duty (d) Dumping duty
160. Who decided on the quantity of coins to be minted?
(1) The Government of India (2) RBI
(3) Either 1 or 2 (4) All of the above
(5) None of the above
161. Which among the following is not incorrect?
(a) Money market provides long term source of
finance
(b) Recession in the industrial sector in India is
normally due to a fall in exports
(c) Ways and means advances given by RBI are
nowhere related to the state’s revenue
(d) Exchange rate is fixed by RBI
162. We have read in the newspapers that the
Government of India has signed a DTAA to broaden
the scope of article of exchange of information to
include exchange of banking information. What
does DTAA stand for?
(a) Double taxation article agreement
(b) Double taxation avoidance agreement
(c) Double taxation avoidance arrangements
(d) Dual tax agreement arrangement
163. Which of the statements mentioned below is/are
correct?
1. T-bills are issued by the Government of India on
behalf of the RBI
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2. T-bills are short-term money market
instruments
3. T-bills cannot be purchased by a resident of
India
(a) All are correct (b) 2 & 3 are correct
(c) Only 2 is correct (d) Only 3 is correct
164. Which of the following is an incorrect statement?
(a) Reverse Repurchase operation by RBI is
aimed at increasing the liquidity in the banking
system
(b) Special Drawing Rights (SDR) are issued by
IMF
(c) Rupee appreciation results in decrease in
imports
(d) Increase in the inflation rate leads to decline in
real interest rate
165. What purpose does the MICR number, which is
present on a cheque, serve?
(a) It is used to identify the genuineness of the
cheque
(b) It is used to identify the bank branch
(c) It is nothing but a type of cheque number
(d) Both (a) and (b)
166. In TRIPS, what does ‘I’ stand for?
(a) Intellectual (b) Information
(c) Indian (d) Infra
167. Insurance companies use the bank sales channels
to sell their products. Which of the following terms
describes this selling process?
(a) Scheduled banking (b) Scheduled Insurance
(c) Bankinsuring (d) Bancassurance
168. Which of the following acts is useful in controlling
HAWALA transactions?
(a) FEMA Act (b) RBI Act
(c) DICGC Act (d) Banking Regulation Act
169. What does the term SME stand for?
(a) Small and Micro Enterprises
(b) Small and Medium Enterprises
(c) State and Medium Economy
(d) Small and Medium Economy
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170. ‘CAMELS’ is a type of Bank Rating System. In
CAMELS, what does ‘C’ stand for?
(a) Currency (b) Compensation
(c) Capital Adequacy (d) Capitalisation
171. In banking parlance, ‘NPA’ stands for
(a) Non Performing Asset
(b) Net Producing Asset
(c) Net Performing Asset
(d) Not Promoting Asset
172. LAF is an indirect instrument of monetary policy,
which is used by \RBI to regulate the liquidity in
banking system. ‘LAF’ stands for:
(a) Liquidity Adjustment Facility
(b) Liquidity Account Facility
(c) Liquidity Allotment Facility
(d) Long Adjustment Feature
173. _____________are NOT a part of the Scheduled
Banking structure in India.
(a) Money lenders (b) Public sector banks
(c) Private sector banks
(d) Regional rural banks
174. ‘MAT’ is an acronym which stands for
(a) Maximum Alternate Tax
(b) Minimum Alternate Tax
(c) Minimum Affordable Tax
(d) Maximum Affordable Tax
175. Often, we read in the newspapers that several
Indian companies are taking the FCCB route to
raise capital. What does the term FCCB stand for?
(a) Foreign Currency Convertible Bond
(b) Foreign Convertible Credit Bond
(c) Financial Consortium and Credit Bureau
(d) Future Credit and Currency Bureau
176. ________________was the main objective of the Fiscal
Responsibility and Budget Management Act, 2003.
(a) Achieving fiscal surplus
(b) Eliminating revenue deficit
(c) Eliminating fiscal deficit
(d) Stopping money laundering
177. DEPB (Duty Entitled Passbook) scheme which
ended in September 2011 was related to
(a) Foreign direct investment
(b) Foreign institutional investment
(c) Export promotion
(d) Import substitution
178. ‘KYC’ (Know Your Customer) norms were
implemented in the Indian banking system in 2002
as per the directive of
(a) SEBI (b) RBI
(c) IBA (d) IRDA
179. For issuing notes, RBI has required to hold the
minimum reserve of Rs. 200 crore of which not lesss
than Rs…. crore to be hold in gold.
(1) 85 (2) 100 (3) 115 (4) 125 (5) 200
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180. Which of the following is a correct statement ?
(a) Normally no interest is paid on current
deposit accounts,
(b) Interest is paid on current accounts at the
same rate as term deposit accounts
(c) The rate of interest on current account and
savings account are the same
(d) No interest is paid on any deposit by the bank,
(e) Savings deposits are the same as current
deposits
181. What do you understand by the term ‘Mortgage’?
(a) Sale of moveable security in the event of default
by the borrower
(b) Registration of charge with the Registrar of
Companies
(c) Making the security of immovable property
available as a cover for a home loan by the
borrower
(d) Registration of charge with the Regional
Transport Authority
(e) Returning of the security to borrower by the
bank of receipt of full payment
182. Which of the following is NOT a source of funds of
a commercial bank?
(a) Capital, (b) Borrowings from RBI
(c) Call money, (d) Deposits
(e) Cash reserves with RBI
183. The Banking Ombudsman
(a) is in charge of bank loan for buses,
(b) fixes the rates of interest for loans
(c) resolves complaints of customers
(d) issues licences for new bank branches
(e) is the head of all nationalized banks
184. “Scheduled bank” means a bank
(a) incorporated under the Companies Act, 1956,
(b) authorized to the Banking business,
(c) governed by the Banking Regulation Act, 1949,
(d) Included in the Second schedule to the
Reserve Bank of India Act 1934
185. For filing and resolving customer complaints the
banking Ombusdsman
(a) charges a fee of 500/- ,
(b) does not charge any fee
(c) charges a fee of 1500/-
(d) charges a fee of 1000/-,
(e) none
186. How many banks are presently associated of State
Bank of India ?
(a) Eight, (b) Seven
(c) Six, (d) Five (e) Four
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187. To use smart cards/ debit cards/ credit cards for 193. In India, the RBI prescribes the minimum SLR
the purchase of an item or for payment of a service level for Scheduled Commercial Banks in India in
of a merchant’s store, the card has to be swiped in specified assets as a percentage of Bank’s
a terminal known as: (a) Net Demand and Time Liabilities,
(a) Point of Sale terminal, (b) Demand Liabilities (c) Time Liability,
(b) Real time terminal (d) None of the above (e) All of the above
(c) Shopping terminal 194. The methods of credit control by the Reserve Bank
(d) All of the above, of India may be broadly divided into two parts
(e) None of the above .These are:
188. A bank account in which a depositor can deposit (a) open and close,
his funds any number of times he likes and can also (b) Quantitative and Qualitative
withdraw the same any number of times he wishes (c) monetary and fiscal (d) rural and urban
is called (e) none of the above
(a)Fixed deposit account, (b) Saving account 195. As per the directives issued by RBI, a cash credit
(c) Current Account (D) Recurring account or overdraft account will be treated as Non-
189. Any note, which is wholly or partially, obliterated, performing Asset if:
shrunk, washed, altered or indecipherable is a/an (a) the account remains ‘out of order’
(a) mutilated note, (b) imperfect note, (c) soiled (b) there are no credits in the account in the month
note, (d) mismatched note , (e) none of these in which interest is applied
190. Expand the term ALM as used in Banking/ Finance (c) the debit balance in the account has exceeded
sector: the sanctioned limit during the reporting month
(a) Asset Liability Management, (d) all of the above(e) none
(b) Asset Liability Maturity 196. If neither the word ‘Bearer’ nor ‘Order’ is written
(c) Asset Liability Mismatch, on a cheque , payment will be made by treating it
(d) Asset Liability Manpower as:
(e) Asset Liability Maintenance (a) Bearer Cheque, (b) an Order Cheque
191. For repayment of loan availed from Banks/ NBFC (c) At bank’s discretion (d) cannot be paid at all
we come across a term known as EMI. What does (e) None of the above
it stand for? 197. Currency notes issued by RBI are fully covered by:
(a) Equated Money index, (a) Approved assets, (b) Gold
(b)Easy Money Installment (c) Foreign exchange (d) All of these
(c) Equated Monthly Installment (e) None of the above
(d) Equal Monthly Installment 198. The government has stipulated that quoting
(e) Equal Minimum Installment Permanent Account Number is mandatory for
(a) Current Accounts, (b) Demat Account
(c) Term Deposits (d) Savings Bank
(e) None of the above
199. Truncation of cheques means:
(a) The cheques in the paper form will be retained
by the collecting banker and he will submit
(b) Entire clearing operations would be done only
through computers
(c) Cheques will be scanned and the electronic
image, instead of physical cheque, will be
transmitted in the clearing cycle
192. The loan amount in case of a reverse mortgage is (d) Debiting the drawer’s account through internet
decided taking into account which of the banking
following? (e) None of the above
(a) Value of House property, 200. The paid –up capital of Non- Scheduled Bank is
(b) Age of the borrower less than
(c) prevalent Interest rates. (a) 5 lakh, (b) 10 lakh (c) 12
(1) only (A), (2) Only (B), lakh
(3) Only (C), (4) All (A), (B),& (C) (d) 15 lakh (e) None of the above
(5) none of these
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201. In case a depositor wishes to withdraw his 208. What do you mean by “C” in the term called as
deposits prematurely, banks FMCG?
(a) do not allow the same till maturity of the (a) Customer; b) consumer; c) creditor;
deposits d) country; e) none of the above
(b) charge a penalty for the same 209. In the term called as AMFI, what do you mean
(c) do not charge any penalty and allow the same by “M”?
(d) do not allow premature withdrawal (a) Mutual; b) money; c) Managing;
(e) none of the above d) Miscellaneous; e) none of the above
202. When the foreign exchange deals take place 210. When it comes to the following term namely- PLR
through telephone or other electronic system (and – what do you mean by ”L”?
not through an exchange) it is called— (a) Liberalisation; b) Liquidity; c) Lending;
(a) over the counter d) License; e) Loan
(b) over the electronic media 211. When it comes to the term called as “OTCEI”, what
(c) over all channels do you mean by “E”?
(d) over the exchange (e) none of these (a) Exchange; b) Environment;
c) Environment; d) Entitlement;
e) Enlistment
212. ______refers to a market where securities are
203. What is a ’Debit Card’? traded after being initially offered to the public in
(a) it is a card issued by a Rating Agency, the primary market and/or listed on the stock
(b) it is a card which can be used for withdrawing exchange.
cash or making payment even in the absence of any (a) Security market; b) secondary market;
balance in the account , c) stock market; d) Bond market;
(c) it is a card which can be used for e) debenture market
withdrawing cash or making payment if there 213. When it comes to the following term – FPO, what
is balance in the account do you mean by “F”?
(d) it is a card which carries prepaid balance, (a) Further; b) facility;
(e) It is a card which can be used for making STD c) favour; d) Follow On
calls. e) none of the above
204. Which of the following correctly describes what 214. In the ______________, the securities like shares and
sub-prime lending is? debentures are offered to the public subscription
A. Lending to the people who cannot return the for the purpose of raising capital or fund:
loans. (a) Secondary market; b) Primary market;
B. Lending to the people who are high value c) share market; d) debenture market;
customers of the banks. e) none of the above
C. Lending to those who are not a regular customer 215. MICR bank code line on a cheque consists of
of a bank. besides the cheque or draft number, nine digits
(a) Only A, (b) Only B number. What do the first three digits of this
(c) Only C, (d) All, A, B and C number denote?
(e) A and C a) Centre/city;
205. Which among the following is not a power of RBI? b) Bank;
(a) Inspection of banks, c) Branch of a bank;
(b) Nationalization of Banks d) account category – current account/savings
(c) Call of returns, bank/cash credit account;
(d) Control the lending policies of the banks e) none of the above
(e) All are powers 216. You are aware of MICR code available at the
206. Open Market Operation By RBI are the part of its bottom of the cheque/draft and what the last three
(a) Fiscal Policy, (b) Non fiscal Policy digits of a nine digits number on a MICR band code
(c) Income Policy, (d) Credit policy, line denote?
(e) none of these a) Centre/city; b) bank;
207. When it comes to the following term namely- c) Branch of a bank;
IPO, what do you mean by “P”? d) Account category – savings bank/current
(a) Provisions; b) Public; c) Private; account/cash credit account;
d) Prudent; e) Pension e) none of the above

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217. Can you say what do the middle three digits of a b) Credit rating Intelligence services of India
nine digits number on a MICR band code line Limited;
denote? c) Credit rating Indicative services of India
a) Centre/city; b) bank; Limited;
c) Branch of a bank; d) Credit rating integrated services of India
d) Account category – current account/savings Limited;
bank account/cash credit account; e) none of the above
e) None of the above 224. In banking the term DTL refers to;
218. What do you mean by a clearing house? A. Detail time limit. B. Demand and time limit.
a) Collection centre for cheques and demand C. Demand and time liabilities
drafts; D. None of these.
b) Pooling centre for excess currencies received
from the branches;
c) Collection centre for collection of tax and other
receipts;
d) collection centre for issuing debit and credit
cards to customers;
e) None of the above
219. You Are Aware Of The Existing Of Bcsbi – Can
You Provide The Missing Words In The Term:
Banking _______And ______Board Of India? 225. Full form of the term "FINO" is-
A) Codes And Settlements; A. Financial inclusion network and operations.
B) Codes And Standards; B. Financial inclusion news and operations.
C) Companies And Standards; C. Financial investment network and operations.
D) Committees And Systems; D. None of these.
E) Commissions And Selectors 226. Gross Domestic Product is defined as the value
220. The returned non-resident Indians are of all:
permitted to open the following accounts: (1) Goods produced in an economy in a year
a) Non-resident external account; (2) Goods and services produced in an economy in
b) Non-resident ordinary account; a year
c) RFC account; (3) Final Goods produced in an economy in a year
d) FCNR account; (4) Final Goods and services produced in an
e) None of the above economy in a year
221. The main foreign exchange reserves in the country 227. The Draft of the Five Year Plans in India is
comprises of the following: approved by the:
a) Foreign currency assets; (1) National Development Council
b) Gold stock; (2) Planning Commission
c) Special drawing rights; (3) National Productivity Council
d) Reserve tranche position; (4) Ministry of Finance
e) All the above 228. Deficit financing implies-
222. MIBOR represents (1) Printing new currency notes
a) The interest rate at which bank borrows (2) Replacing new currency with worn out
fund from other banks; currency
b) The interest rate at which bank borrows from (3) Public revenue in excess of public expenditure
RBI; (4) Public expenditure in excess of public revenue
c) the interest rate at which RBI borrows from 229. Present minimum & maximum limit for RTGS
commercial banks; transactions is ____.
d) the rate at which banks borrow from the public; (1) Rs.50000, Rs 200000
e) the rate at which the banks in India borrows (2) Rs. 1 lac, No Limit
from foreign banks (3) Rs. 2 lac, Rs 5 lac
223. What do you mean by CRISIL? (4) Rs.5 lac, Rs 10 lac
a) Credit rating information services of India (5) Rs. 2 lac, No Limit
Limited; 230. The Capital Account Convertibility of the Indian
rupee refers to:

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 (1) that the Indian rupee can be exchanged for the
US dollar for international trade in goods and
service
(2) that the Indian rupee can be exchanged for
any major currency for the purpose of trading
financial assets
(3) that the Indian rupee can be exchanged by the
authorized dealer for travel purpose
(4) that the Indian rupee can be exchanged for any
major currency for the purpose of trade in goods
and services
(5) None of the above

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