Financial Institutions & Banking

Financial Institutions & Banking

LIST OF ATTEMPTED QUESTION S AND ANSWERS
 Multiple Choice Multiple Answer 
Question
Agricultural Finance Consultancy Ltd(AFC) activities cover :-
Correct Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark Surveys
Your Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark Surveys

Multiple Choice Multiple Answer 
Question
Duties of an International Banking unit cover :-
Correct Answer
Handling foreign currency , Handling Doc. credits , Granting lines of Credit
Your Answer
Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits

Select The Blank
 Question
One of the objectives of NHB is to augment the ________ resources for the housing sector.
Correct Answer
Financial
Your Answer
Financial

Multiple Choice Multiple Answer 
Question
The unorganised financial system comprises of :-
Correct Answer
Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer
Money lenders , Indigenous bankers , Lending pawn brokers

Multiple Choice Single Answer 
Question
The lender of the last resort to the market is the :-
Correct Answer
RBI
Your Answer
RBI

Multiple Choice Multiple Answer 
Question
Credit Information report is also known as :-
Correct Answer
Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report

Multiple Choice Single Answer 
Question
Cetificate of deposit are issued by
Correct Answer
Banks
Your Answer
Banks

Multiple Choice Single Answer 
Question
A record of the holdings of GOI dated securities of each holder is contained in :-
Correct Answer
SGL pass book
Your Answer
SGL pass book

Multiple Choice Single Answer 
Question
The organised financial system includes :-
Correct Answer
Commercial banks
Your Answer
Commercial banks

Select The Blank 
Question
Development financial institutions have been established to cater to ________ of the industrial sector.
Correct Answer
Long term financial needs
Your Answer
Working capital needs

Multiple Choice Single Answer 
Question
DFHI was incorporated under the :-
Correct Answer
Companies Act, 1956
Your Answer
Companies Act, 1956

Select The Blank
 Question
The ________ meet the long and medium term credit needs of agriculture.
Correct Answer
Land Development Banks
Your Answer
Regional Rural Banks

Multiple Choice Single Answer 
Question
Certificate of deposit is a :-
Correct Answer
Usance promissory note
Your Answer
Term Deposit Receipt

True/False
 Question
Amongst others, ICICI also provided long and medium term loans or equity finance.
Correct Answer
TRUE
Your Answer
TRUE

Multiple Choice Multiple Answer 
Question
EXIM Bank provides financial assistance to:-
Correct Answer
Indian Companies , Commercial Banks , Foreign Governments
Your Answer
Investment trusts , Indian Companies , Commercial Banks

Multiple Choice Multiple Answer 
Question
RBI sells securities through :-
Correct Answer
Auction program , Open market operations , Private placements
Your Answer
Open market operations

Multiple Choice Single Answer
 Question
The ultimate source of money in India is:-
Correct Answer
RBI
Your Answer
RBI

Multiple Choice Single Answer
 Question
Long term debt instruments have a maturity of :-
Correct Answer
Over one year
Your Answer
Over one year

Multiple Choice Multiple Answer 
Question
R B I conducts monetary control by way of O M O in :-
Correct Answer
Treasury bills , State /central Government Securities
Your Answer
Treasury bills , State /central Government Securities

True/False 
Question
Under open market operation RBI conducts buying /selling shares/debentures of blue chip companies.
Correct Answer
FALSE
Your Answer
FALSE

Match The Following
QuestionCorrect Answer
Your Answer
Development financial institutions
IFCI
IFCI
Organised sector
Banking System
Banking System
Unorganised sector
Indigenous banks
Indigenous banks
Mutual funds
UTI
UTI

Select The Blank 
Question
The Shipping Credit and Investment Company of India Ltd. has changed its name to ________ effective from October 1992.
Correct Answer
SCICI Ltd
Your Answer
SCICI Ltd

Multiple Choice Multiple Answer 
Question
A member's IMF Quota determines its :-
Correct Answer
Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power

Multiple Choice Single Answer 
Question
Development Financial institutions include :-
Correct Answer
State financial institutions
Your Answer
State financial institutions

Multiple Choice Single Answer 
Question
The unorganised financial system includes :-
Correct Answer
Indigenous bankers
Your Answer
Indigenous bankers

Match The Following
Question
Correct Answer
Your Answer
Fruit Crops, Floriculture, Vegetables
Horticulture
Horticulture
Institutional studies, Dwell Time Studies
Surveys & Studies
Surveys & Studies
Agronomy, Crop Planning, Plant Protection, Farm Inputs
Crop Production
Crop Production
Canals & Rivers, Drip Irrigation
Irrigation & Drainage
Irrigation & Drainage

Select The Blank 
Question
The HDFC was set up in 1977 by the ________.
Correct Answer
ICICI
Your Answer
ICICI

Multiple Choice Single Answer
 Question
Instruments issued by DFIs and Banks carry :-
Correct Answer
Highest credit ratings
Your Answer
Highest credit ratings

Multiple Choice Single Answer 
Question
LIC of India was set up in :-
Correct Answer
1956
Your Answer
1818

Select The Blank 
Question
Secured Premium Notes are ________.
Correct Answer
Debentures
Your Answer
Debentures

Multiple Choice Single Answer 
Question
PFC is committed to the integrated development of :-
Correct Answer
Power
Your Answer
Power

True/False 
Question
Banks issue Guarantees on behalf of their clients.
Correct Answer
TRUE
Your Answer
TRUE

True/False 
Question
Banks authorised to deal in foreign exchange are known as Authorised Dealers.
Correct Answer
FALSE
Your Answer
TRUE

Multiple Choice Multiple Answer 
Question
DFHI was set up with the following objective :-
Correct Answer
To even out imbalances , To provide liquidity , To promote secondary market
Your Answer
To even out imbalances , To provide liquidity , To promote secondary market

Multiple Choice Multiple Answer 
Question
NABARD has taken over the entire functions of :-
Correct Answer
ARDC , ACD of RBI , RPCD of RBI
Your Answer
ARDC , ACD of RBI , RPCD of RBI

Multiple Choice Multiple Answer 
Question
R B I issues currency notes against the security of:-
Correct Answer
Gold bullion , Foreign securities , GOI securities
Your Answer
Gold bullion , Foreign securities , GOI securities

Select The Blank 
Question
The ________ has been accredited by RBI as a Primary Dealer in Governemt Securities.
Correct Answer
STCI
Your Answer
LIC of India

True/False 
Question
The SFCs also borrow from SIDBI & IDBI.
Correct Answer
FALSE
Your Answer
TRUE

Select The Blank 
Question
Legally speaking Pass Through Certificates are ________ and are tradeable freely.
Correct Answer
Promissory notes
Your Answer
Promissory notes

Select The Blank 
Question
DFIs are the second largest issuer of ________ after the Govt and Sovereign bodies.
Correct Answer
Debt instruments
Your Answer
Debt instruments

Multiple Choice Multiple Answer 
Question
From time to time RBI has issued :-
Correct Answer
Straight coupon bonds , Inflation linked bonds , Zero coupon bonds
Your Answer
Inflation linked bonds , Zero coupon bonds

True/False 
Question
The currency notes issued by RBI are legal tender everywhere in India without any limit.
Correct Answer
TRUE
Your Answer
FALSE

True/False
 Question
HDFC was set up by NHB.
Correct Answer
FALSE
Your Answer
FALSE

True/False 
Question
PFC also provides reform & restructuring related studies.
Correct Answer
TRUE
Your Answer
FALSE

Select The Blank 
Question
The ________ was set up to help corrections in BOP maladjustments.
Correct Answer
IMF
Your Answer
IMF

Select The Blank 
Question
The CRAFICARD recommended the establishment of ________.
Correct Answer
NABARD
Your Answer
NABARD

True/False
 Question
NIDHIS are Trading Organisations.
Correct Answer
FALSE
Your Answer
FALSE

Select The Blank 
Question
HDFCs loans were linked up with________.
Correct Answer
Planned Savings
Your Answer
Planned Savings

True/False 
Question
CPs are issued by corporate entities.
Correct Answer
TRUE
Your Answer
FALSE

Select The Blank 
Question
AFC's membership consists of commercial, cooperative banks and DFIs including ________.
Correct Answer
EXIM bank
Your Answer
EXIM bank

Multiple Choice Single Answer 
Question
Money Markets Instruments have a maturity of less than :-
Correct Answer
One year
Your Answer
One year

Select The Blank 
Question
Kisan Vikas Patra are issued through ________.
Correct Answer
Post Offices
Your Answer
Post Offices

Multiple Choice Single Answer 
Question
Liquid assets to be maintained to a stipulated ratio under Section 24 of BR Act is called :-
Correct Answer Statutory Liquidity Ratio
Your Answer
Statutory Liquidity Ratio

True/False 
Question
NABARD provides short term refinance for procurement activities also.
Correct Answer
TRUE
Your Answer
TRUE

Multiple Choice Multiple Answer 
Question
DFHI was set up jointly by :-
Correct Answer
RBI , Banks , All India Fis
Your Answer
Banks , All India Fis

True/False
 Question
Small Savings are source of Capital Receipts for the Government.
Correct Answer
TRUE
Your Answer
TRUE

Multiple Choice Multiple Answer
 Question
Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

True/False
 Question
Mortgage Loans are loans against property.
Correct Answer
TRUE
Your Answer
TRUE

Select The Blank 
Question
The extent of powers enjoyed by a branch depends on the size of its ________.
Correct Answer
Business
Your Answer
Business

Multiple Choice Multiple Answer 
Question
Prominent Institutional Investors are :-
Correct Answer
Corporate Treasuries , Mutual Funds , Foreign Investors(FIIs)
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

True/False 
Question
PFC has been persuading State Governments restructuring of their power sector to make them viable.
Correct Answer
TRUE
Your Answer
TRUE

Select The Blank 
Question
Bills of Exchange and ________ are Money Market Instruments.
Correct Answer
Promissory Notes
Your Answer
Promissory Notes

True/False 
Question
Bank Guarantee can be Performance of financial Guarantee.
Correct Answer
FALSE
Your Answer
FALSE

Match The Following
QuestionCorrect Answer
Your Answer
Inter Bank Call Money Markets
BRs, Call Money Receipts
Loans and advances
Money Market Instuments
CP, CD ,T- Bills
CP, CD ,T- Bills
Capital Market Instruments
Shares
Shares
Debt Market Instruments
GOI Securities ,Bonds
GOI Securities ,Bonds

Multiple Choice Single Answer 
Question
Account where lump sum investment is made for specific period is :-
Correct Answer
Term Deposit account
Your Answer
Term Deposit account

True/False 
Question
CP is a usance promissory note hence it can be negotiated by endorsement & delivery.
Correct Answer
TRUE
Your Answer
FALSE

Multiple Choice Single Answer
 Question
Money Markets Instruments have a maturity of less than :-
Correct Answer
One year
Your Answer
One year

Multiple Choice Multiple Answer 
Question
The prominent Bond issuing PSU are :-
Correct Answer
MTNL , NTPC , SAIL
Your Answer
NTPC

True/False 
Question
The Capital of NABARD is subscribed by World Bank.
Correct Answer
FALSE
Your Answer
FALSE

Multiple Choice Multiple Answer 
Question
Post Offices are popular for mobilizing small savings of the public due to :-
Correct Answer
Wide network , Tax concessions , Saftey of funds
Your Answer
Wide network , Tax concessions , Saftey of funds

Multiple Choice Single Answer 
Question
For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer
SIDF
Your Answer
SIDF

Select The Blank 
Question
SCICI provides domestic & foreign loans for capital equipment and________ services.
Correct Answer
Technical
Your Answer
Technical

True/False 
Question
Non bank financial institutions undertake fund and non fund based activities.
Correct Answer
TRUE
Your Answer
TRUE

Select The Blank 
Question
Mutual Funds provide the benefits of ________.
Correct Answer
Portfolio management
Your Answer
Long term returns

Select The Blank 
Question
CRR and SLR are ________ reserves.
Correct Answer
Statutory
Your Answer
Statutory

Select The Blank 
Question
An ________ letter of credit cannot be canceled by the buyer without the seller's consent.
Correct Answer
Irrevocable
Your Answer
Irrevocable

Multiple Choice Single Answer 
Question
A Transaction on "payment later" basis is a :-
Correct Answer
Credit transaction
Your Answer
Credit transaction

Multiple Choice Single Answer 
Question
A Bill in banking parlance means a :-
Correct Answer
Bill of Exchange
Your Answer
Bill of Exchange

Multiple Choice Single Answer 
Question
A company issues CP to save on :-
Correct Answer
Interest cost
Your Answer
Interest cost

Multiple Choice Multiple Answer 
Question
IDA lends to poor countries :-
Correct Answer
By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Your Answer
By lending at 0% interest. , For periods up to ten years

Select The Blank
 Question
The Premium of ________ is obtained through obligatory reinsurance premium.
Correct Answer
GIC
Your Answer
GIC

Multiple Choice Single Answer 
Question
FIs can be classified into two categories depending on the basis of incorporation and :-
Correct Answer
Operation
Your Answer
Operation

Multiple Choice Multiple Answer 
Question
Basic Life insurance policies include :-
Correct Answer
Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans

Multiple Choice Single Answer 
Question
Long term debt instruments have a maturity of :-
Correct Answer
Over one year
Your Answer
Over one year

True/False 
Question
Cancellation of a Guarantee is known as "revocation".
Correct Answer
TRUE
Your Answer
TRUE

Multiple Choice Single Answer 
Question
The unorganised market is made of :-
Correct Answer
Moneylenders
Your Answer
Moneylenders

Select The Blank
 Question
Financial markets are the centres that provide facilities for buying and selling of ________.
Correct Answer
Financial claims and services
Your Answer
Financial claims and services

Multiple Choice Multiple Answer 
Question
Functions of R.O. of a bank include :-
Correct Answer
Inspection/audit , Control on branches , Grant loans/advances
Your Answer
Control on branches , Grant loans/advances

Multiple Choice Multiple Answer 
Question
Financial Services offered by PFC include :-
Correct Answer
Term loans , lease finance , Loan Syndication
Your Answer
Term loans , lease finance , Loan Syndication

Multiple Choice Multiple Answer 
Question
Functions of NIDHIs include :-
Correct Answer
Accepting Deposits , Granting loans , Encourage thrift
Your Answer
Accepting Deposits , Granting loans

Multiple Choice Multiple Answer 
Question
In case of a Life policy it is possible to withdraw from the obligation to contribute further premium by :-
Correct Answer
Surrendering the policy , Converting it into paid up policy , Assigning it in the open market
Your Answer
Surrendering the policy , Converting it into paid up policy , Assigning it in the open market

Match The Following
QuestionCorrect Answer
Your Answer
Aquaculture ,Brackish Water
Fisheries
Fisheries
Ploughing, weeding, transplantation
Seasonal Agricultural Operations
Seasonal Agricultural Operations
Market Yards, Storage & Warehousing
Agricultural Marketing
Agricultural Marketing
Hill ,Tribal Area development
Area Development
Area Development

Multiple Choice Multiple Answer 
Question
Mutual fund has main entities like :-
Correct Answer
Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company

Multiple Choice Single Answer 
Question
Financial institutions deal in :-
Correct Answer
Financial assets
Your Answer
Financial assets