BANKING AWARENESS PRACTICE MCQs1. Indian Commercial Banks are categorized into:a) Public sector Banksb)Foreign Banksc) Private Sector Banksd) All of the abovee) None

2. Regional Rural Banks have been set up with thebasic objectives of:a) Providing credit to semi - urban & urbanpopulationb) Providing deposits facilities to farmersc) Providing credit & deposit facilities to ruralareasd) providing credit, deposit and other bankingfacilities to people in rural arease) None

3. _____ is raised in capital marketsa) Funds through long term securitiesb) Long term loans through Govt. securitiesc) medium term loansd) Short - term instrumentse) None

4. Interest on Government secu-rities on fixed basisis known as:a) Bank rateb) Couponc) Prime Lending Rated) Bench mark PLRe) None

5. __ was not nationalized in 1969:a) Punjab National Bankb) Oriental Bank of commercec) Bank of Barodad) Union Bank of Indiae) None

6. In the first round 14 major banks with a liabilitybase of ____ were nationalized:a) 10 crore or moreb) 20 crore or morec) 50 crore or mored) 100 crore or moree) None

7. _____ do not attract TDS:a) Fixed depositsb) Reinvestment depositsc) NRO SB

d) NRO FDRe) Recurring deposits

8. SLR is maintained as a percentage of:a) Time liabilitiesb) Demand liabilitiesc) Time and Demand liabilitiesd) Gross time and demand liabilitiese) Net demand and time Liabilities

9. The maximum Statutory Liquidity Ratio to bemaintained by banks is_____:a) 25%b) 30%c) 35%d) 40%e) None

10. CRR funds are kept by the Banks in ____:a) Cash in hand at branchesb) Balance with other banksc) Balance in a special Account with RBId) Funds in the currency cheste) None

11. An increase in CRR by RBI leads to:a) Decrease in depositb) increase in depositc) Increase in lendable resourcesd) Decrease in lendable resourcese) None

12. When RBI reduce the CRR it results into:a) Decrease in depositb) increase in depositc) Increase in lendable resourcesd) Decrease in lendable resourcese) None

13. What is meant by development Orientedbanking?a) Infrastructure financingb) Extending loans to States, which areundevelopmentc) Taking up the task of develo-pment of theeconomy by providing support to under privilegedsections of the societyd) All the abovee) None

14. Principal functions of SIDBI:a) Promotion of SSI

b) Finance of SSIc) Development of SSId) All the abovee) None

15. ____ heads and conducts the affairs of RBI:a) Central Boardb) local boardc) Regional boardd) All of the abovee) None

16. RBI Provides ____ for meeting day - to - dayreceipt and expenditure mismatch to both Centraland State Governments.a) treasury billsb) Ways and Means advancec) date and securitiesd) All the abovee) None

17. RBI known as lender of last resort because:a) It has to meet the credit need of citizens to whomno one else is willing to lendb) Banks lend to go to RBI as a last resortc) It comes to help banks in times of crisisd) All of the abovee) None

18. These days RBI uses Selective credit controlmeasures rather infrequently because of:a) Deregulation of functionsb) Autonomy given to banksc) Comfortable liquidityd) Reasonable inflation levele) All the above

19. Which is incorrect with regard to powers ofRBI:a) Holds cash reserve banksb) Controls banking system through licensingc) Supervises Banking system through inspectiond) None of the abovee) All

20.Intervenes in markets to maintain the externalvalue of the Indian rupee:a) Exportersb) Importersc) RBId) IMFe) None

21. In India, forex rates are determined by:a) Importers b) Exportersc) RBI d) Ministry of commercee) Demand and supply forces

22. Regional Rural Banks were set up on therecommendations of:a) Nariman committeeb) Narasimham committeec) Gadgil committeed) Puri committeee) None

23. committee, launched the process of reforms offinancial system in India:a) Gadgil committeeb) Nariman committeec) Narasimham committeed) khanna Committeee) None

24. Which of the following can be categories as aMerchant Banking service?a) Consultancy on finance to a companyb) Advance in capital structurec) Managing mergersd) Helping in finalizing take overe) All the above

25. The instrument which provides proprietaryinterest in company and which entitles a person todividend on profits, is called?a) Bondb) Sharec) Debentured) Warrante) Any of the above

26. Which of the following provides properdefinition of a Mutual Funds?a) It is an association of members of publicb) These members want to invest in financialinstrumentc) They want to invest in financial instrument asstsof business sectord) All the abovee) None

27. Which of the following organisations/agenciesworks solely to monitor and arrange flow ofagriculture credit in India?

a)NABARDb) SIDBI

c) RBId)SEBIe) None of these

28. The currency notes of which of the followingdenominations are not printed in India ?a) Rs. 5b) Rs. 10c) Rs. 50d) Rs. 2500e) Rs. 1000

29. Which of the following is not the name of abank functioning in India?a) Central Bank of Indiab) UCO Bankc) Aegon Religared) Dena Banke) ICICI Bank

30. When banks accept a fixed sum of money froman individual for a definite term and pay onmaturity with interest, the deposit is known as :a) Term Depositb) Demand Depositc) Bondd) Mortgage

e) Advance.

31. Which of the following terms NOT used inbanking/finance related matters ?a) Discount Rateb) Letter of creditc) Policy Rated) Exchange ratee) Base rate

32. Who amongst the following is the chief ofSEBI?a) Milind Bhaveb) UK Sinhac) Shashikath Vermad) Shyamala Gopinathe) None of these

33. Which of the following is a leading electronic-payment tec-hnology firm?a) Visab) Maxc) BSE

d) Sensexe) SWAP

34. Global Market means market of :a) USAb) Chinac) OPEC membersd) European union countriese) All major countries and their alliances;