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`overview

of banking

1. Rajesh Sharma owner of modern enterprise has approached bank for a loan of rs.200crore . the bank has agreed to give a loan of rs 50 crore only. Mr. Sharma approaches bank B which agree to give another 50 crore being still short f the limit he approaches another 3 bank of which 2 bank agree to give to crore and 60 crore respectively to complete the deal. The bank asses individually the team and condition applicable to borrowing company which type of funding process is this company following

A. Syndication of bank B. Group bank C. Consortium of bank D. Multiple bank

2.

Identify the cause that is not responsible for lack of growth in the agriculture sector

A. Excessive fragmentation of land holding B. No lack of institutional finance at affordable rate C. Dependence on monsoon for agriculture production D. Low agriculture production yield per acre compared to international standard 3. which of the following features of bank are different from others intermediaries

a. bank are the only institutions that lend money on interest b. bank are the only institution that provide security of money c. banks are the only institution that can accept demand deposit d. banks are the only institution that enables deposit of money

4.

identify the disadvantages that are posed from increased global completion in the domestic market

a. The customer are exposed to best in class service b. The customer are offered a wide variety of product service to choose from many players c. Customers get attracted to new ways of spending their money & switch from domestic plyrs d. The domestic player have to improve their product & service to match the internat standard

5.

Which of the following is correct in respect to creation of credit

a. Bank reverse a part of their deposit before lending to its borrower and thus circulate the money - TRUE b. Higher the reserve higher the credit they manage FALSE

6.

Which of the following is true in regard to LC in a non fund then

a. LC insurance is fund based facility given to customers and source of income for bank FALSE b. Foreign LC is issued when the buyer located abroad inland and LC is issued when buyer and seller are located with in the same country TRUE

7. Identify the cause that is not responsible for the lack of growth in the agriculture sector

a. Dependence on monsoon for agricultural production b. Low agricultural production yield per acre compared to international stanfdard c. No lack of institutional finances at affordable rate d. Excessive fragmentation of land holding

8.

Which of the following statements give trie difference b/w secure OD and cash credit limit

a. Cash cr limit is secured by fixed deposit placed by the borrower where as the overdraft is normally unsecured and given as clean OD,s b. Cash cr limit is unsecured requires no underlying security where as the overdraft is secured by assignment of life insurance policies or any other financial security c. Cash cr. Limit is secures by the hypothecation of factory or office premises whereas the overdraft is secures by assignment of life insurance policies or any other d. Cast cr. Limit is secured by the hypothecation or pledge of goods where as the overdraft is secured by mortgage of property or assignment of life insurance polices or any other

9. Good luck enterprise has secured as govt order for construction of barrage the govt will release amt toward purchase of material . the govt has also imposed a condition that the lite showed be completed in 6 months . good luck enterprise approaches for financial assistance which facility you will consider

a. Demand loan b. Guarantees c. Bill discounting d. Letter of credit

10.True or false a. financial intermediaries plays an important role to stabiles economy by generating employment and promoting economy welfare TRUE b. all institution in the financial sector may not perform or enable intermediation FALSE 11. what is the disadvantages to a customer when investing in mutual fund a. the customer may have to pay an upfront commission for lending amount in MF b. the return on customers investment are optimized c. the customer risk when investing the MF come down d. the investment in mutual fund are based on customers risk appetite

12. identify the statement that ios true in respect to quantity of money in circulation a. gold standard has been adopted by most of the development countries b. higher the reserves lesser the creation of money c. lesser the reserves lesser the creation of money d. higher the reserve higher the creation of money 13. identify the reason which is not applicable when banks maintain a margin on value F.A a. to compensate for the depreciation in the value of asset on account of its usage b. to compensate for the reduction in the value of asset c. to keep its debt equity ratio high of the org d. to create a .. of safety for the credit extended 14. which of the following transaction will not increase nostro account balances of RBI a. when RBI has long position on foreign currency

b. when the total outflows of foreign currency from the country outflow higher than the inflow c. when the banks with long position turn to RBI to square up the position d. when the total inflow of foreign currency is higher then the outflow in the country 15. AMRO companies has decided to send a shipment for rs 300000 commitment from buyer to send fund after 30 days post shipment deposited the following document with the bank identify which is inconsistent with the terms of the trade a. invoice of rs 300000 b. issuance bill of exchange c. railway receipt for goods dispatched d. demand bill of exchange 16. what is the advantage to bank when they offer investment to the customer a. the customer keep higher bal and invest through impacting their profit positively b. the customer make better return on their investment c. it gives customer the professional advise they need to complex financial products d. the bank provide well trained relationship manager to customers 17. what has been the objective of develop or govt financial institution a. to provide best in class product ansd services b. to provide financial assurance for establishment of regional industria ventures c. to provide all possible financial solution to customers at large d. to bring down the significance of unorganized sector

18.

which of the following is correct about NOSTRO account a. rupee A/C maintained by NRE bank b. foreign currency account maintains by NRO A/C

c. Indian rupee A/C maintained by correspondent bank with Indian bank d. foreign currency A/c maintained by Indian bank with foreign corresponding bank 19. Malcolm , an account holder of the bank died and information t the name meanwhile bank received a draft thorough his only son for the cancellation this draft was purchased earlier by Malcolm from the same branch and bank a. bank can cancel the draft and make a payment after obtaining permission control office b. bank can refuse to cancelled the draft as original purchase is no more c. bank can tell Malcolms son to handover DD to the beneficiary and take payment frm the beneficiary after encashment d. bank can cancel the draft and make payment to the legal their after receiving copy of death certificate and obtaining an indemnity 20. MFI - micro finance institution Ombudsman 3 years 21. what do u mean by return tangible 22. NBFC (which is not included ) - loan saving 23. which of the foll. Is not a function of money Reliability 24. RBI and SBI manages clearing house 25. issued at branch of bank and payable at another branch of bank Demand draft 26. process of multiple pay order through clear house Credit ECS 27. facilating settlement of transaction using cheque current account 28. loan given to Indian for meeting time requirement Retail loan

29. risk to bank due to money laundering reputation risk or regulatory 30. which of the following is an unplict outcome of bank lending through MFI ? a. loan do not form a part of MFI balance sheet b. MFI share losses with banks c. MFI are free from deployed their capital 31. which one of the following states is not falling below the national % for literacy Bihar, Rajasthan ,UP, goa

32. not subject to general insurance Annuioty Paayment 33. which of the foll. Option represent a mode of introduction of customer that cannot be used for opening an A/C of a sole proprietorship of a partnership a. introduction by an existing banker b. introduction by an existing banker customer c. introduction by an govt employee d. introduction by an officer of customer existing bank 34. LC which is a substitute for performance guarantee financial guarantees is known as confirmed LC

35. an exporter based in India has received a LC . he wants to open an LC in favour of local supplier from whom he proposes to procure the goods . as a result the beneficiary bank open the LC in favour of the local supplier based on the LC received by th exporter a. back to back LC b. revolving LC c. transferrable LC d. confirmed LC 36. texplone is a govt manufacturing unit in Mumbai , exporting goods to fashion state a retail firm in newyork texpo raises BOE , even after six months the bank in newyork does nor release the bill texpo applies for on extension of 3 months to its bank - 6 months cancel

37. A and B son of C after the death of C who will get the house male member acc. To Hindu law 38. EEFC and RFC similarities 39. F.D (which one is not correct) 40. A and B start business together but A goes ti abroad then how will B ge the credit open end account 41. which one is not developing act by the govt. for rural population. 42. which is correct for impact of globalization capital flows 43. A transport some goods to B , now A wants to inform about the place where goods will reached and price of goods , which are will choose by A letter of lending 44. method of reemitting money for away place EFT 45. cheque issued by bank on itself banker cheque 46. in ombudsman tenure is 3 years 47. 10 years 48. which one is not a feature of money 49. which one is not a function of money 50. a person has credit account with a bank and have FD also, what type of risk is having bank and customer liquidity risk 51. renuka hesist 52. if a bank is providing investment service to a customer then what will bank get 53. product offered by bank under role as payment system credit card 54. Logo of debit card visa/master card 55. Serious risk faced by lender credit card

Overview of banking

1. 2. 3.

1 Rs. coin issue = govt of India 500 note issue = RBI 1st bank of India in = kolkatta

4. Coin and currency = intangible asset 5. Features of money = durability, portability. Divisibility 6. Debit card main = portability 7. Credit risk = liquidity risk 8. NRI not issue = Pakistan, Bhutan, Nepal, Bangladesh 9. GDP=16% 10. 11. 12. 13. 14. 15. 16. 17. Multiple bank Regulatory burden 50000 Lower the reserve move the encrolate all the chairperson Renuka = memo without customer/ insist Mongan =liable DD= front desk Non fund to fund

18. Govt

across the globelone willing to even force the bank to recognize their social responsibility

19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35.

Disintenmontiction 10000 Switching of domestic market Current account Inspection certificate 7 years 3 years Yreg at land holding Open national risk 15% Loan saving is not NBFC Ownership is the similarity between loan/leasing Lower / your / your higher Nostro account Saving of basic = deposit loan 20 hai toh 80

LVR ratio : 80 hai toh 20 Transfer General lich collection, forex

36. Payment,

4th option wrong hoga

37. Foreign citizen can to use earn the NRO account less then six month 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. TDS of two amy of int payee i.e cw Remiler without Customer segment Lower the reserve move the circle account of chairperson Margin liable RFC or SSFC Foreign account open I foreign currency Saving account cannot be open by government RFC OR EEFC similarity = permitted remittance Similarity between cash credit , bill discount, bill purchase