Financial Institutions and Banking - 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
Gramin banks are State Owned Banks.
Correct Answer
True
Your Answer
True

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

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

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

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
Your Answer
Final

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

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 Single Answer
Question
Instruments issued by DFIs and Banks carry :-
Correct Answer
Highest credit ratings
Your 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
Your Answer
Donations/Charity , Payments of Salaries , Travel related payments

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

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

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

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

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

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

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

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

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

True/False
Question
CPs are issued by corporate entities.
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
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
Your Answer
SLR/CRR maintenance , Issuing Lending Policy , Sanctioning advances

Match The Following
Question
Correct Answer
Your Answer
Inter Bank Call Money Markets
BRs, Call Money Receipts
BRs, Call Money Receipts
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 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
Your Answer
Cash Book , Trial Balance , P/L statement

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

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

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

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

Select The Blank
Question
SCICI provides domestic & foreign loans for capital equipment and________ services.
Correct Answer
Technical
Your 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
Your 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
Your Answer
Accepting Deposits , Granting loans , Encourage thrift

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

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
Your 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
Your Answer
Goods and services

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

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

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

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

Match The Following
Question
Correct Answer
Your Answer
CRR
Primary reserve requirement
Primary reserve requirement
Bankers Bank
Controlling the reserves of commercial banks
FEMA
Exchange control
FEMA
Controlling the reserves of commercial banks
OMO
Government securities
Government securities

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

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

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

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
The objective of ICICI was to assist the :-
Correct Answer
Private sector
Your Answer
Private sector

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

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