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 .

5 crores • (d) Can be issued only by banks .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.

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 .

few FIs like LIC.Question 6 • Which of the following statements is not true? • (a) Call money market deals with overnight loans • (b) As special cases. 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 • (d) 65.000 • (c) 35.000 .000 • (b) 25.

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 4.0% . 2007? • 5.5% • 6.0% • 6.5% • 7.

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 .

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