Financial Institutions and Banking - 3

Financial Institutions and Banking - 3

Select The Blank
Question The term ________ refers to the act of a bank extending finance to the seller against a letter of credit.
Correct Answer Negotiation



Multiple Choice Multiple Answer
Question Soft Loan Scheme for modernisation is provided by :-
Correct Answer IFCI , ICICI , SIDBI


Match The Following
Question -Correct Answer

Charitable Trusts- Rajiv Gandhi Foundation

PSU MTNL ,SAIL, KRC MTNL ,

Mutual Funds UTI ,ICICI Prudential

Statutory Trusts Port Trust Port Trust

True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True

Multiple Choice Single Answer
Question Commercial Papers are issued by :-
Correct Answer Corporates

Question Investment on a monthly basis and repayment on due date is made in :-
Correct Answer Recurring deposit

True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False

True/False
Question
State loans are much less liquid than GOI Securities.
Correct Answer
True

Multiple Choice Single Answer
Question
IDBI was delinked from RBI and it became autonomous in the year :-
Correct Answer
1976


Question
One of the leading All India FI is :-
Correct Answer
SIDBI

Multiple Choice Single Answer
Question
The largest member of the IMF is the :-
Correct Answer
U.S.A.

Multiple Choice Single Answer
Question
The foreign currency account maintained by an authorised dealer with its correspondent abroad is :-
Correct Answer
Nostro Account

Select The Blank
Question
As a banker to the Government, RBI accepts Government deposits at ________% interest.
Correct Answer
0

Multiple Choice Single Answer
Question
The word ' Tranche ' is a French word which means :-
Correct Answer
A Slice

Multiple Choice Single Answer
Question
Size of the Quota depended upon :-
Correct Answer
GNP

Match The Following
Question
Correct Answer

Small Savings
Chit Funds

Gen.Insurance
NICo of India Ltd.

Life Insurance
LIC of India Ltd

Mutual fund
UTI

True/False
Question
CPs have to be compulsorily rated.
Correct Answer
True


Multiple Choice Single Answer
Question
If the Bank allows a finance of Rs 95 against a Bill of Rs 100 the difference of Rs. 5 is known as the :-
Correct Answer
Discount


Multiple Choice Multiple Answer
Question
IIBI (formerly known as IRBI )undertakes :-
Correct Answer
Merchant Banking activities , Lease or hire purchase finance , Consultancy & managerial services

Select The Blank
Question
The loans under________ are based on Poverty Reduction Strategy Paper.
Correct Answer
PRGF


Multiple Choice Multiple Answer
Question
Functions of a Bank's H.O. include:-
Correct Answer
Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Single Answer
Question
DICGC also provides :-
Correct Answer
Security to deposits


Match The Following
Question
Correct Answer

Insurance of all employees of a Firm
Group Insurance

Premium Throughout Life
Whole Life

Fixed Period Insurance
Endowment

Insurance of ocean Cargo
Marine Insurance

True/False
Question
A Cheque is a Negotiable Instrument.
Correct Answer
True

Multiple Choice Single Answer

Question
Which one of the following is not a deposit account?

Correct Answer
Cash Credit account



Select The Blank

Question
The ________ does not collect Savings from the Public.

Correct Answer
NIICO Ltd.

.

Multiple Choice Single Answer

Question
IMF articles were amended in 1978 to legalise the :-

Correct Answer
Floating exchange rates

Select The Blank

Question
________ is merely an asset created out of book entries.

Correct Answer
SDR

Question
Correct Answer

Regional Rural Bank
Thane Gramin Bank



Public Sector Bank
Indian Bank

Private Sector Bank
Bank of Rajasthan Ltd


Foreign Bank
CITI BANK

Select The Blank

Question
Syndication of Loans Globally does not involve any funds as it is ________ activity.

Correct Answer
Non-fund based



True/False

Question
Issuance of CD attracts reserve requirements.

Correct Answer
False



Select The Blank

Question
The repayment holiday period is also known as ________ period.

Correct Answer
Moratorium


Multiple Choice Single Answer

Question
Zero Coupon Bonds are issued at a :-

Correct Answer
Discount to face value


Multiple Choice Multiple Answer

Question
DICGC does not insure the deposits :-

Correct Answer
Of foreign Governments , Of State Cooperative Banks , Of the Central Government


Multiple Choice Multiple Answer

Question
DICGC does not insure the deposits :-

Correct Answer
Of foreign Governments , Of State Cooperative Banks , Of the Central Government



Match The Following

Question
Correct Answer

Small Savings
Chit Funds

Gen.Insurance
NICo of India Ltd..

Life Insurance
LIC of India Ltd


Mutual fund
UTI

Multiple Choice Single Answer

Question
Which one of the following is a Cooperative Bank?

Correct Answer
COSMOS BANK



Multiple Choice Single Answer

Question
Liabilities of Insurance Cos are mostly :-

Correct Answer
Long term



Select The Blank

Question
GIC raises funds to meet claims from ________.

Correct Answer
Premium collected

True/False

Question
Issuance of CD attracts reserve requirements.

Correct Answer
False


Multiple Choice Single Answer
Question Investment on a monthly basis and repayment on due date
is made in :-
Correct Answer Recurring deposit


Multiple Choice Single Answer
Question A current account where the customer can withdraw more
than the balance is :-
Correct Answer Overdraft

Multiple Choice Single Answer
Question SIDBI commenced its operations from :-
Correct Answer April 2,1990

Match The Following
Question -Correct Answer
NABARD -Rural Development

AFC Ltd -Consultancy
HUDCO -Housing

NCDC -Development of Cooperatives
Financial Institutions and Banking - 2
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question
The first long term industrial financing corporation set up in the country was :-
Correct Answer
IFCI

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


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

Multiple Choice Single Answer
Question
In addition to sugar Industry IFCI has predominantly lent to :-
Correct Answer
Textile sector



Multiple Choice Multiple Answer
Question
Other than Tourism, International funds remittances comprise of :-
Correct Answer
Donations/Charity , Payments of Salaries , Payments of Royalty

True/False
Question
NABARD provides Refinance for Marketing of Crops.
Correct Answer
True



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


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

Select The Blank
Question
NABARDs Criteria for Refinance covers Technical ________ of the project.
Correct Answer
Feasibility

True/False
Question
Banks do not invest in the GOI securities .
Correct Answer
False

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


Select The Blank
Question
NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer
Paid-up

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



Match The Following
Question
Correct Answer


CRR
Primary reserve requirement

Bankers Bank
Controlling the reserves of commercial banks


Exchange control
FEMA

OMO
Government securities

Multiple Choice Single Answer
Question
NABARD was established on the recommendations of :-
Correct Answer
CRAFICARD


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

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

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


Multiple Choice Multiple Answer
Question
Tourism promotes :-
Correct Answer
Credit Card Business , International remittances , Travellers' Cheques

True/False
Question
Development financial institutions primarily lend to Agriculture sector.
Correct Answer
False

Select The Blank
Question
The ________ is the apex institution in the field of foreign trade in India.
Correct Answer
EXIM bank


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

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

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

Select The Blank
Question
The price in financial markets is known as ________.
Correct Answer
Rate of interest

True/False
Question
Gramin banks are State Owned Banks.
Correct Answer
True


Multiple Choice Single Answer
Question
A credit facility under which a borrower can withdraw up a certain limit subject to availability of adequate security is :-
Correct Answer
Cash Credit account


Select The Blank
Question
Syndication involves ________ sanction.
Correct Answer
In principle



Multiple Choice Multiple Answer
Question
Treasuries could be either those of the :-
Correct Answer
Private Sector Cos. , Govt.bodies , PSUs

Multiple Choice Single Answer
Question
Treasury Bills are actually a class of :-
Correct Answer
Govt.Securities


Select The Blank
Question
The ________ regulation makes the banks the largest investor in the GOI securities.
Correct Answer
SLR

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


Multiple Choice Single Answer
Question
Initial Quantum of resources of IMF were contributed by members according to :-
Correct Answer
Quotas fixed for members


True/False
Question
Most of the Indian PS Banks practice retail banking.
Correct Answer
True

True/False
Question
The overdraft facility is also known as Cash credit facility.
Correct Answer
True

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


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



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


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


Select The Blank
Question
55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer
Weaker sections

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

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



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



Multiple Choice Single Answer
Question
Money Markets Satisfy the needs of :-
Correct Answer
Short term nature



Multiple Choice Multiple Answer
Question
The financial Assistance provided by the IMF enables member countries to :-
Correct Answer
Rebuild resources , Stabilise currencies , Pay for imports


Match The Following
Question
Correct Answer

NGOs
CASP, CRY, PLAN

DFI
IDBI, IFCI, ICICI

PSUs
NTPC, NHPC, Coal India

Corporates
RIL, HPCL

Financial Institutions and Banking - 1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
Gramin banks are State Owned Banks.
Correct Answer
True

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

True/False
Question
Banks do not invest in the GOI securities .
Correct Answer
False

Multiple Choice Multiple Answer
Question
SIDBI provides :-
Correct Answer
Refinance , Rediscounting of Bills , Financial support to SSIDC



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

Select The Blank
Question
Syndication involves ________ sanction.
Correct Answer
In principle


Select The Blank
Question
The ________ regulation makes the banks the largest investor in the GOI securities.
Correct Answer
SLR

Select The Blank
Question
In addition to IFCI and ________ the Soft Loan Scheme for modernisation is also undertaken by IDBI.
Correct Answer
ICICI

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

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


Multiple Choice Multiple Answer
Question
Other than Tourism, International funds remittances comprise of :-
Correct Answer
Donations/Charity , Payments of Salaries , Payments of Royalty


Multiple Choice Single Answer
Question
Money Markets Satisfy the needs of :-
Correct Answer
Short term nature


Multiple Choice Single Answer
Question
Development Financial Institutions provide finance to the needy
Correct Answer
Corporates & govt. institutions


True/False
Question
NABARD does not provide Refinance for stocking & distribution of Chemical Fertilisers.
Correct Answer
False

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

Multiple Choice Single Answer
Question
A major part of the credit of SFCs went to :-
Correct Answer
SSI units


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

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


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

Multiple Choice Single Answer
Question
Initial Quantum of resources of IMF were contributed by members according to :-
Correct Answer
Quotas fixed for members


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

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

Multiple Choice Multiple Answer
Question
Functions of R.O. do not cover :-
Correct Answer
SLR/CRR maintenance , Liaison with RBI/IBA , Issuing Lending Policy



Match The Following
Question
Correct Answer

Inter Bank Call Money Markets
BRs, Call Money Receipts

Money Market Instuments
CP, CD ,T- Bills

Capital Market Instruments
Shares

Debt Market Instruments
GOI Securities ,Bonds

Multiple Choice Multiple Answer
Question
Which of the following statements are not prepared on a daily basis in branch?
Correct Answer
Cash Book , Trial Balance , P/L statement


Select The Blank
Question
Interest on advances is generally calculated on ________ products.
Correct Answer
Daily


Multiple Choice Single Answer
Question
IDBI has helped in the establishment of :-
Correct Answer
EXIM Bank

Multiple Choice Multiple Answer
Question
Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer
New Projects , Renovation , Modernisation


Multiple Choice Single Answer
Question
Deposits per depositor per bank are secured by DICGC up to a sum of :-
Correct Answer
Rs. one lac.

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

Multiple Choice Multiple Answer
Question
The main objective of ICICI was :-
Correct Answer
To augment export finance in India , To channelise World Bank's funds to industries in India , To help in building up a Capital Market in India


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


Multiple Choice Single Answer
Question
IDBI was initially set up as :-
Correct Answer
Subsidy of RBI

Multiple Choice Multiple Answer
Question
For its long term operations NABARD raises funds by :-
Correct Answer
Floating Bonds in open market , Drawing from the Central Govt. , Drawing from National Rural credit Funds

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


True/False
Question
IDA does not lend to countries that are not in a position to borrow from IBRD.
Correct Answer
False

Select The Blank
Question
General insurance policies are genarally issued for ________ year.
Correct Answer
One

True/False
Question
SCICI is a member of the OTCEI.
Correct Answer
True

Multiple Choice Single Answer
Question
The deposit account offering cheque withdrawal facility is known as :-
Correct Answer
Current account

Match The Following
Question
Correct Answer

CRR
Primary reserve requirement

Bankers Bank
Controlling the reserves of commercial banks


Exchange control
FEMA

OMO
Government securities

Multiple Choice Multiple Answer
Question
The loans of finance companies are generally :-
Correct Answer
At high interest , Unsecured , Based on borrowers worth



Multiple Choice Single Answer
Question
The apex institution in the field of Industrial Development is :-
Correct Answer
IDBI


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

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

Multiple Choice Single Answer
Question
The objective of ICICI was to assist the :-
Correct Answer
Private sector


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

Select The Blank
Question
Period of Holiday Insurance is ________.
Correct Answer
Six months or less