DBS545 - Banking & Allied Services HH

9/21/21, 10:47 AM DBS545 : Banking & Allied Services
FEDAI
Board of Directors of Bank
RBI
Ministry of Finance
6. Treasury department of a Bank cannot invest in

(1 Point)
Debt Market
Commodities Market
Money Market
Forex Market
7. This is a risk faced by the Banks in financial intermediation:

(1 Point)
Country Risk
Currency Risk
Credit Risk
Liquidity Risk
8. The Utility Bills cannot be paid in the Axis Bank through _______
(1 Point)
Cash
Cheque
ASBA
Demand Draft
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9. Which of the following is not a function of SEBI?

(1 Point)
Regulating the securities market.
Protecting the interests of investors in securities
Recommending where to invest
Promoting the development of the securities market
10. Integrated Treasury, comprising of Domestic and forex treasury, is a part of

banking business, taking care of funds requirement, investment, dealing in
foreign exchange market and domestic money market etc. Treasury also takes
care of reserve requirements under the regulatory guidelines. Answer the
following based on the functions of treasury; The Interest Rate on Deposits &
Advances, in consultation with Treasury and other business units is fixed by
(2 Points)
Deposit Department at Head Office
Operational Risk Management Committee
ALCO (Asset Liability Management Committee)
Advance Department at Head Office
11. As per PMLA, records of services should be preserved for ____ years
(1 Point)
10 years
Forever
3 years
5 years
12. Record Date for a Corporate Action is announced by:

(1 Point)
Depository
Issuer
Exchanges
Shareholders
13. Mr. Vaidya, Mr. Venkat and Mr. Sriram approached you for opening of a Demat
account with your Bank and request you to dematerialise a physical share
certificate of 500 TCS Ltd shares, which is in their joint name, along with Mrs.
Suma, wife of Mr. Vaidya. On dematerialisation, they want to sell the shares.
The Delivery Instruction Slip (DIS) has to be signed by;
(2 Points)
Any two jointly
Any one
All the joint Holders of the Demat account
First holder and the last holder
14. At the request of a company, a service of arranging, negotiating and providing

for financial requirement is called
(1 Point)
Multiple Banking Arrangement
Sole Banking Arrangement
Consoritum Arrangement
Loan Syndication Arrangement
15. ISIN for a Company is allotted by

(1 Point)
CDSL
NSDL
SEBI
RTA
16. What is the maturity period of Treasury Bills?

(1 Point)
Upto One year
More than 10 years
Upto 6 months
Upto 3 months
17. To sell any share of a listed company it should undergo the process of
(1 Point)
Dematerialization
Allotment
Rematerialization
Securitization
18. Process of bringing together, the depositors (suppliers) and the borrower
(seekers) by the bank is called intermediation. Intermediation is necessary
because of the imperfect nature of markets where perfect knowledge of
seekers and Providers (suppliers is) not known.
Functions falling under this head are Accepting deposits and Lending of
money(loans). Banking is faced with many challenges and is a risky business.
Answer the following questions based on the risk faced by the banks.
Default by the borrowers is
(2 Points)
Market Risk
Credit Risk
Interest Rate Risk
Operational Risk
19. What do you mean by NEFT?

(1 Point)
Normal Electronic Fund Transfer
National Electrical Funds Transfer
National Efficient Funds Transfer
National Electronic Funds Transfer
Risk of loss resulting from inadequate or failed internal processes, people and
system or from external events is
(2 Points)
Market Risk
Reputation Risk
Operational Risk
Credit Risk
21. Inter depository transfer of securities is

(1 Point)
Permitted
Not permitted by Stock brokers
Not permitted
Not permitted by depositories

22. The process of a broker submitting securities sold by him on behalf of his
client, to the clearing house of a stock exchange is called as
(1 Point)
Pay out
Off Market
Trading
Pay in
23. Minimum Period of RBI REPO is

(1 Point)
1 Day
15 Days
5 Days
2 Days
24. Mutual Fund is a _______ that collects money from investors who share a
common investment objective
(1 Point)
Public Ltd Company
Autonomous Body
Trust
Private Ltd Company
25. OLTAS stands for

(1 Point)
Online Tax accounting service
Offline tax accounting service
Online Tax accreditation service
Online Tax Accounting System
26. UPI acronym stands for:

(1 Point)
Unified Provisional Interface
Unified Payment Interface
United Payment Interface
United Professional Interface
27. Nomination of Demat account is provided under

(1 Point)
SEBI Act 1992
Depositories Act 1996
Companies (Amendment) Act 1999
SCRA 1956
28. Minimum amount of investment in CD is

(1 Point)
Rs.1 lakh
Rs.5 lakhs
No minimum
Rs.50 lakhs
Change in interest rate results in
(2 Points)
Country Risk
Credit Risk
Foreign Exchange Risk
Interest Rate Risk
30. M/s. ABC Company, wholesale dealers for Jaguar bathroom fittings, are one of
your valued clients. They supply the goods to various outlets, distributers in
the region. All these outlets and distributors, more than 1000 in numbers,
across the southern region are receiving hundreds of remittances by way of
Cheque, DD, Cash and other modes towards sale proceeds and indent for more
goods. The Financial Officer of the Company, heard about the CMS facility,
seeks your advice on the following issues: CMS Dedicated service desk for quick
resolution of customer queries is known as;
(2 Points)
Call centre
Service Branch
Centralised Collection & Payment Hub (CCPH)
Customer care centre
31. What does STP mean in SWIFT, RTGS etc

(1 Point)
Straight Through Processing
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Strong Transfer Process
Swift Transaction Processing
Swift Telegraphic Process
32. Only those securities whose ___ has been activated by the depository can be
dematerialised.
(1 Point)
IIP
ISIN
NEFT
Settlement number

following based on the functions of treasury; Deal Confirmation, rate checking,
payments and settlements, reconciliation of bank accounts, compliance with
liquidity requirements are the functions of
(2 Points)
The Back Office
The Front Office
The Mid Office
The Circle Office
34. The main reasons Banks have increased their focus on Allied Services are:
(1 Point)
It is mandatory as per RBI Regulations
The Banks can issue more Demand Drafts
It is mandatory as per SEBI guidelines

Banks can increase their fee income and also cross selling
35. Sec 12 of Depositories Act deals with

(1 Point)
Pay out of securities
Hypothecation and pledge of securities
Pay in of securities
Demat of shares
36. Liquidity Risk is the risk due to :

(1 Point)
not being able to withdraw funds from business
change in the market interest rate
change in market rate for conversion of foreign currency
default in repayment of loan
37. Which one of the following Taxes is a direct Tax?

(1 Point)
Value Added Tax (VAT)
Excise duty
Service Tax
Income Tax
38. Definition of Alternate Delivery Channels include:

(1 Point)
Other Delivery Channels as Branch less Banking
May not complement an existing bank branch network

Not used for the purpose of financial services
Other delivery channels including branch banking
39. Issuer shall be required to enter into agreement with all the _______________
before coming out with a public offer.
(1 Point)
Investors
Depository Participants
Depositories
SEBI
40. Who can request for Dematerielisation of security?

(1 Point)
Depository
Issuer
Beneficial Owner
Depository Participant
41. Mr. Vaidya, Mr. Venkat and Mr. Sriram approached you for opening of a Demat
account with your Bank and request you to dematerialise a physical share
certificate of 500 TCS Ltd shares, which is in their joint name, along with Mrs.
Suma, wife of Mr. Vaidya. What is the maximum number of joint holders in case
of a Demat account?
(2 Points)
Any number
seeks your advice on the following issues: Cash Management Services covers;
(2 Points)
Only cash handling
Only Collection services
Both collection & Payment services
Only Payment services
43. Nomination can be made in the name of one or more person in respect of
(1 Point)
all types of deposit accounts
Safe deposit lockers operated jointly
articles kept in the safe custody
only term deposits
44. ALM is NOT responsible for

(1 Point)
Liability Pricing
Sanction of Loans
Asset Pricing
Liquidity Management

following based on the functions of treasury; Major advantages of investing in
Money Market Instruments is
(2 Points)
Long Term with Good returns
Safety, Liquidity & Returns.
High Returns
Tax Benefits
46. Which of the following service cannot be done at an ATM machine:

(1 Point)
Transfer Fund abroad
Mini statement
Balance enquiry
Cash withdrawal
47. XYZ Ltd holding the locker requesting to nominate director of the company.
You will
(1 Point)
None of the these
reject the request as no nomination can be allowed in case of corporates
Maximum two nominations can be allowed
Accept the nomination
48. The lender in whose favour securities are pledged are called as
(1 Point)
Lessee
Pledgee
Bailee
Pledgor
49. The charge for Bill Pay at Axis Bank is ________.

(1 Point)
Nil
INR 100 per annum
INR 15 per month
INR 25 per transaction
50. A demat account can have

(1 Point)
As many holders as possible
Maximum of three holders
Maximum of two holders
One holder only
seeks your advice on the following issues: Name of the Bank products used in
CMS are;
(2 Points)
Power Cash
Power remittance
CMS Pay Thru, Paypro, Power Cheque, CBSS
Power Collection
52. What is the function of SWIFT?

(1 Point)
To provide a secure platform for exchange of financial messages between banks
To transfer funds from one country to other
To supervise the transfer of funds in the international arena
To provide funds for transfer through their members
53. The boorrower cannot ________ securities in case of pledge or hypothecation of

securities
(1 Point)
Receive Dividends on
Receive Bonus on
Sell
Buy
54. CMS includes

(1 Point)
Only payment services
Only collection services
Only cash handling
Both collection & Payment services
55. The facility of ‘roll over’ is available in:

(1 Point)
Credit Card
Debit Card
Travel Card
Charge Card
56. A minor approaches a bank for a locker. What should the Bank do?
(1 Point)
Cannot allot a locker as he is incompetent to enter into a contract
The Bank may allotted provided he is 16 years of age
May be allotted a locker only jointly with his natural / legal guardian
The Bank may allot locker provided he is 12 years of age
57. Transfer of shares from one person to person without the intervention of a
Broker is called
(1 Point)
Market Transaction
Sub Market Transaction
Intra market Transaction
Off Market Transaction
58. Who acts as Merchant Banker to Central and State Government Securities
(1 Point)
IDBI
SBI
RBI
PSB
59. Which of the following sections of BR Act deals with nomination for lockers ?
(1 Point)
Section 46 ZE
Section 44 ZE
Section 43 ZE
Section 45 ZE
60. Bonds are issued by

(1 Point)
Municipal Bodies
Corporates
Central Governments
State Governments
61. IMPS is a _______ alternate channel

(1 Point)
e-wallet service based
Axis call and pay on ATOM based
Mobile Telephone based
Internet Based
62. Goods and Service Tax Collected is at

(1 Point)
Negotiable
Fixed Percentage
Variable
Linked to the security

Any fluctuations in the market price of its investment portfolio is known as
(2 Points)
Credit Risk
Reputation Risk
Foreign Exchange Risk
Market Risk
64. Which of the following is a "Cash Corporate Actions"?

(1 Point)
Stock split
Dividend
Bonus shares
Rights issue
65. The main function of a Stock Exchange is to provide:

(1 Point)
Liquidity to the existing securities /shares
Funds to commercial Banks
Funds to Corporate segment
Funds to financial intermediaries

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9/21/21, 10:47 AM DBS545 : Banking & Allied Services

Board of Directors of Bank

6. Treasury department of a Bank cannot invest in

7. This is a risk faced by the Banks in financial intermediation:

9. Which of the following is not a function of SEBI?

Regulating the securities market.

Protecting the interests of investors in securities

Recommending where to invest

Promoting the development of the securities market

10. Integrated Treasury, comprising of Domestic and forex treasury, is a part of

Deposit Department at Head Office

Operational Risk Management Committee

ALCO (Asset Liability Management Committee)

Advance Department at Head Office

12. Record Date for a Corporate Action is announced by:

Any two jointly

All the joint Holders of the Demat account

First holder and the last holder

14. At the request of a company, a service of arranging, negotiating and providing

Multiple Banking Arrangement

Sole Banking Arrangement

Loan Syndication Arrangement

15. ISIN for a Company is allotted by

16. What is the maturity period of Treasury Bills?

Upto One year

More than 10 years

Default by the borrowers is

Interest Rate Risk

19. What do you mean by NEFT?

Normal Electronic Fund Transfer

National Electrical Funds Transfer

National Efficient Funds Transfer

National Electronic Funds Transfer

21. Inter depository transfer of securities is

Not permitted by Stock brokers

Not permitted by depositories

23. Minimum Period of RBI REPO is

Public Ltd Company

Private Ltd Company

25. OLTAS stands for

Online Tax accounting service

Offline tax accounting service

Online Tax accreditation service

Online Tax Accounting System

26. UPI acronym stands for:

Unified Provisional Interface

Unified Payment Interface

United Payment Interface

United Professional Interface

27. Nomination of Demat account is provided under

SEBI Act 1992

Depositories Act 1996

Companies (Amendment) Act 1999

28. Minimum amount of investment in CD is

Change in interest rate results in

Foreign Exchange Risk

Interest Rate Risk

Centralised Collection & Payment Hub (CCPH)

Customer care centre

31. What does STP mean in SWIFT, RTGS etc

Straight Through Processing

Strong Transfer Process