Banking Awareness

1. First Governor of RBI was a) Hilton Young, b) Paul Samuelson, c) C.D.Deskmukh, d) O.A SmithAns. d) O.A Smith 2. At the time of nationalization who was the Governor of RBIa) O.A Smith, b) J.B Ta lo!, c) C.D. Deshmukh, d) ".C.#eog Ans. ) !.". "eshm#$h %. &he RBI was nationalized in the 'ear a)$%&%, b)$%'(, c)$%'%, d)$%&)Ans. a)1()( ). &he *eneral s#+erintenden e and dire tor of the ,an$ is entr#sted to entral ,oard of dire tors of a)$* membe!s, b) +* membe!s, c) +' membe!s, d),* membe!sAns. ,) 2- mem,ers .. /a+er #rren ies of o#r o#ntr' are iss#ed ,' RBI #nder a) Section- ++ o. the /B0 act -$%,&, b) Section- +& o. the /B0 act -$%,& c) Section- +1 o. the /B0 act -$%,&, d) #one o. theseAns. a) Se tion- 22 of the RBI a t -1(%) 0. One r#+ee #rren ' notes ,ear the si*nat#re of a) P2, b) P!esident o. 0ndia, c) 3o4e!no! o. /B0, d) 5inance Sec!eta! o. 0ndiaAns. d) Finan e Se retar' of India 1. &en r#+ees notes ,ear the si*nat#re of a) P!esident, b) 5inance 2iniste!, c) Sec!eta! o. 2inist! o. .inance, d) 3o4e!no! o. /B0Ans. d) Governor of RBI 2. 3hi h of the followin* is the ,an$er of the ,an$s a) 0DB0, b) SB0, c) /B0, d)6T0Ans. ) RBI (. In whi h of the followin* ,an$s one an4t o+en a +ersonal a o#nt a) Co-O7e!ati4e Banks, b) Comme!cial banks, c) /egional /u!al Banks, d) /B0Ans. d) RBI 1-. 3hi h of the followin* ,an$s is the ,an$er to the *overnment a) SB0, b) S8B0, c) /B0, d) 0/DAAns. ) RBI 11. 3hi h of the followin*s are the f#n tion of RBI a) /egulation o. cu!!enc and .lo9ing o. c!edit s stem, b) 2aintaining e:change 4alues o. !u7ee c) 5o!mulating moneta! 7olic o. 0ndia, d) All o. theseAns. d) All of these 12. !redit rationin* in India is done ,' a) SB0, b) ;0C, c) 6T0, d) /B0Ans. d) RBI 1%. &he first ,an$ of India was a) Bank o. Hindusthan, b) 0m7e!ial Bank, c) Bank o. Bengal, d) Oudh Comme!cial BankAns. a) Ban$ of 5ind#sthan 1). &he first Indian f#ll' lia,ilit' and mana*ed ,an$ was a) P#B, b) T!ade!s Bank, c) SB0, d) * P!esidenc Bank o. 0ndiaAns. a) /6B 1.. &he rates at whi h the RBI e7tends redit to the ommer ial ,an$ is alled a) Bank /ate, b) /e4e!se /e7o /ate, c)0nte!est /ate, d) #one o. theseAns. a) Ban$ Rate 10. In whi h of the followin* is not the an' element of monetar' +oli ' of RBI a) Bank !ate, b) O7en 2a!ket O7e!ation, c) Public 8:7enditu!e, d) All o. theseAns. ) /#,li 87+endit#re 11. 1-- r#+ees note ,ears the si*nat#re of a) 3o4e!no! o. /B0, b) P2, c) 5inance Sec!eta! o. 0ndia, d) Chai!man o. 5inance CommissionAns. a) Governor of RBI 12. 3hi h of the followin* is the last lender of the last resort of ommer ial ,an$a) SB0, b) 6nion 3o4t., c) /B0, d) 6T0Ans. ) RBI 1(. &he RBI is a*ent of entral *overnment and of all state *overnment e7 e+t

a) Biha!, b) 3oa, c) Jammu and "ashmi!, d) 2i<o!amAns. ) 9amm# and :ashmir 2-. !ontroller of redit of ommer ial ,an$s in o#r o#ntr' is a) /B0, b)S8B0, c) 0C0, d)6T0Ans. a) RBI 21. &he Ban$in* !on e+t in India was first develo+ed ,' a) B!itish, b) 5!ench, c) 0ndian, d) #one o. theseAns. a) British 22. &he rate at whi h RBI *ives short term redit to the ommer ial ,an$s a*ainst *overnment se #rities with ,#' ,a $ +rovision is alled a) Bank /ate, b) /e7o /ate, c) /e4e!se !e7o !ate, d) 0nte!est !ateAns. ,) Re+o Rate 2%. &he rate at whi h RBI ta$es loans from ommer ial ,an$s is alled a) /e7o /ate, b) /e4e!se /e7o /ate, c) Bank /ate, d) 0nte!est /ateAns. ,) Reverse Re+o Rate 2). At +resent the Reverse Re+o Rate of RBI is ;As of 2.th 6ov) a) 1.+', b) ).+', c) ).'*, d)1.'*Ans. d)2..2.. Ban$ rate of RBI is also $nown as a) 0nte!est /ate, b) Discount /ate, c) .ed !ate, d) bid !ateAns. ,) "is o#nt Rate 20. 3hi h of the followin* is not the an' element of <#antitative redit ontrol +oli ' of RBI a) C//, b) S;/, c) Selecti4e c!edit cont!ol, d) o7en ma!ket o7e!ation.Ans. ) Sele tive redit ontrol 21. At +resent !RR== of RBI is a) (=, b) ).'=, c) 1.'=, d) none o. theseAns. a) 0> 22. &he limitation of !RR== of RBI is a),-$* =, b) ,-$'=, c) $'-,1=, d) $*-+'=Ans. ,) %-1.> 2(. &he a+e7 or*anization of Indian mone' mar$et is a)SB0, b) S8B0, c) /B0, d) 0/DAAns. ) RBI %-. If the ash reserve is lowered ,' RBI? what will ,e its effe t on redit reation a) Dec!ease, b) 0nc!ease, c) #o Change, d) #one o. theseAns. ,) In rease %1. &he e7+ansion of mone' s#++l' of an e onom' de+ends on a) The 7olic o. C//, b) The bank !ate 7olic , c) O7en ma!ket o7e!ation, d) All o. theseAns. d) All of these %2. Amon* the followin* who are eli*i,le to ,enefit from the @ahatma Gandhi 6ational R#ral 8m+lo'ment G#arantee A tA a) Adult 2embe!s o. onl the scheduled caste and scheduled t!ibe holde!s b) Adult o. belo9 7o4e!t line household c) Adult membe!s o. household o. all back9a!d communit d) adult membe!s o. an !u!al household, e) #one o. theseAns. d) ad#lt mem,ers of an' r#ral ho#sehold %%. 3hi h of the followin* ,an$s mer*ed with /#nBa, national ,an$s in 1((% a) #e9 bank o. 0ndia, b) Cent!al Bank o. 0ndia, c) 0m7e!ial Bank o. 0ndia, d) Common bank o. 0ndiaAns. a) 6ew ,an$ of India %). A #rren '? the e7 han*e val#es of whi h is e7+e ted to remain sta,le d#e to stron* +erforman e ,' it4s e onom'. &his #rren ' is a) So.t Cu!!enc , b) Hot cu!!enc , c) 5iat cu!!enc , d) #one o. these >Ha!d Cu!!enc ) Ans. d) 6one of these ;5ard !#rren ') %.. &he Reserve Ban$ of India iss#es #nder the followin* note iss#e methodA a) P!o7o!tional /ese!4e S stem, b) 2inimum /ese!4e S stem c) 2a:imum /ese!4e S stem, d) 5i:ed 5iducia! S stemAns. ,) @inim#m Reserve S'stem %0. 3hat is a S hed#led Ban$A a) A bank ha4ing /s $* C!o!e de7osits, b) A bank ha4ing /s $** C!o!e de7osits c) A bank ha4ing /s ' C!o!e de7osits, d) A bank included in the second schedule o. /B0 act

$%,&.Ans. d) A ,an$ in l#ded in the se ond s hed#le of RBI a t 1(%). %1. 5ow man' lan*#a*es are #sed on a &en R#+ee noteA a) +, b) ), c) $*, d) $', e) $(Ans. d) 1. %2. &he +la e where ,an$ers meet and settle their m#t#al laims and a o#nts is $nown as a) T!easu! , b) Clea!ing House, c) Dum7ing House, d) Collection cent!eAns. ,) !learin* 5o#se %(. &he lar*est /#,li se tor ,an$ in India a) SB0, b) P#B, c) /B0, d) 0C0C0Ans. a) SBI )-. 3hi h of the followin* is not the f#n tion of RBI a) Banke!?s bank, b) Banke! to 7ublic, c) custodian o. .o!eign e:change, d) Banke!s to 3o4t.Ans. ,) Ban$er to +#,li )1. 3ho is res+onsi,le for the olle tion and +#,li ation of monetar' and finan ial informationa) 5inance Commission, b) 5inance minist! , c) /B0, d) Audito! and Com7t!olle! gene!al o. 0ndiaAns. ) RBI )2. 3hi h of the followin* re*#lator' a#thorit' to oversee the new iss#es? +rote t the investment and investors? +romote the develo+ment of !a+ital @ar$et and re*#late the wor$in* of Sto $ 87 han*e a) 6T0 b) 0/DA, c) /B0, d) S8B0, e) #one o. theseAns. d) S8BI )%. After a lon* s+an of 22 'ears? RBI released Rs.1---C- #rren ' note for ir #lation in a) +***, b) +**+, c) +**', d) +**1Ans. a) 2--)). Re*ional R#ral ,an$s are wor$in* in all states of the o#ntr' e7 e+t a) Sikkim and 3oa, b) Sikkim and 2ani7u!, c) 2ani7u! and #agaland, d) Jammu and "ashmi!Ans. a) Si$$im and Goa ).. &he 6ational 5o#sin* Ban$ is a s#,sidiar' of a) /B0, b) #ABA/D, c) 0DB0, d) 6T0Ans. a) RBI )0. At +resent the eilin* of Forei*n "ire t Investment ;F"I)== in ins#ran e se tor in India is a) +(=, b) &%=, c) '$=, d) )&=Ans. a) 20> )1. Rs. 2. /aisa was eased ,' the Govt of India on a) ,*th @une +*$$, b) ,*th Jul +*$$, c) $st Janua! +*$$, d) $st Jul +*$$Ans. a) %-th B#ne 2-11 )2. Initial /#,li Offerin* ;I/O) is asso iated with a) /B0, b) Stock 8:change, c) 0/DA, d) 0ndian Postal Se!4iceAns. ,) Sto $ 87 han*e )(. &he Basi re*#lator' a#thorit' for m#t#al f#nds and sto $ mar$ets lies with the a) 3o4e!nment o. 0ndia, b) /ese!4e Bank o. 0ndia c) Secu!ities and 8:change Boa!d o. 0ndia >S8B0), d) Stock 8:changeAns. ) Se #rities and 87 han*e Board of India ;S8BI) .-. @onetar' +oli ' Referes to the +oli ' of a) 2one ;ende!s, b) 3o4e!nment, c) Comme!cial Banks, d) /B0Ans. d) RBI

A$. Bhat is a /e7o /ateC

AnsD /e7o !ate is the !ate at 9hich ou! banks bo!!o9 !u7ees .!om /B0. Bhene4e! the banks ha4e an sho!tage o. .unds the can bo!!o9 it .!om /B0. A+. Bhat is /e4e!se /e7o /ateC AnsD This is e:act o77osite o. /e7o !ate. /e4e!se /e7o !ate is the !ate at 9hich /ese!4e Bank o. 0ndia >/B0) bo!!o9s mone .!om banks. /B0 uses this tool 9hen it .eels the!e is too much mone .loating in the banking s stem. A,. Bhat is C// Cash /ese!4e /atio /ateC AnsD C// is the amount o. .unds that the banks ha4e to kee7 9ith /B0. A&. Bhat is S;/ >Statuto! ;iEuidit /atio) /ateC AnsD S;/ a77!o4ed secis the amount a comme!cial bank needs to maintain in the .o!m o. cash, o! gold o! go4t. u!ities >Bonds) be.o!e 7!o4iding c!edit to its custome!s. S;/ !ate is dete!mined and maintained b the /B0. S;/ is used to cont!ol in.lation and 7!o7el g!o9th. A'. Bhat is Bank /ateC AnsD Bank !ate, also !e.e!!ed to as the discount !ate, is the !ate o. inte!est 9hich a cent!al bank cha!ges on the loans and ad4ances that it e:tends to comme!cial banks. A(. Bhat is 0n.lationC Ans 0n.lation is as an inc!ease in the 7!ice o. bunch o. 3oods and se!4ices that 7!o@ects the 0ndian econom . An inc!ease in in.lation .igu!es occu!s 9hen the!e is an inc!ease in the a4e!age le4el o. 7!ices in 3oods and se!4ices. 0n.lation ha77ens 9hen the!e a!e .e9e! 3oods and mo!e bu e!sF this 9ill !esult in inc!ease in the 7!ice o. 3oods. A). Bhat is De.lationC AnsD De.lation is the continuous dec!ease in 7!ices o. goods and se!4ices. De.lation occu!s 9hen the in.lation !ate becomes negati4e >belo9 <e!o) and sta s the!e .o! a longe! 7e!iod. A1. Bhat is P;/ >P!ime ;ending /ate )C AnsD The P;/ is the inte!est !ate cha!ged b banks to thei! most c!edit9o!th custome!s >usuall the most 7!ominent and stable business custome!s). The !ate is almost al9a s the same amongst ma@o! banks. A%. Bhat is De7osit /ateC Ans. 0nte!est /ates 7aid b a de7osito! institution on the cash on de7osit. A$*. Bhat is 500 >5o!eign 0nstitutional 0n4esto!)C Ans 500 used to denote an in4esto!, mostl in the .o!m o. an institution. An institution established outside 0ndia. A$$. Bhat is 5D0 >5o!eign Di!ect 0n4estment)C Ans 5D0 occu!s 9ith the 7u!chase o. the G7h sical assets o! a signi.icant amount o. o9ne!shi7 >stock) o. a com7an in anothe! count! in o!de! to gain a measu!e o. management cont!olH >O!) A .o!eign com7an ha4ing a stake in a 0ndian Com7an . A$+. Bhat is 0PO - 0nitial Public O..e!ingC Ans This is the .i!st o..e!ing o. sha!es to the gene!al 7ublic .!om a com7an 9ishes to list on the stock e:changes. A$,. Bhat is Disin4estmentC AnsD The Selling o. the go4e!nment stake in 7ublic secto! unde!takings. A$&. Bhat is 5iscal De.icitC AnsD 0t is the di..e!ence bet9een the go4e!nment?s total !ecei7ts >e:cluding bo!!o9ings) and total e:7enditu!e. A$'. Bhat is /e4enue de.icitC AnsD 0t de.ines that, 9he!e the net amount !ecei4ed >b ta:es I othe! .o!ms) .ails to meet the 7!edicted net amount to be !ecei4ed b the go4e!nment. A$(. Bhat is 3DP - 3!oss Domestic P!oduct C AnsD The o! 3DP is a measu!e o. all o. the se!4ices and goods 7!oduced in a count! o4e! a s7eci.ic 7e!iodF classicall a ea!. A$). Bhat is 3#P - 3!oss #ational P!oduct C AnsD 3#P is measu!ed as 3DP 7lus income o. !esidents .!om in4estments made ab!oad minus income ea!ned b .o!eigne!s in domestic ma!ket. A$1. Bhat is #ational 0ncomeC

AnsD #ational 0ncome is the mone 4alue o. all goods and se!4ices 7!oduced in a count! du!ing the ea!. A$%. Bhat is Pe! Ca7ita 0ncomeC AnsD The national income o. a count! , o! !egion, di4ided b its 7o7ulation. Pe! ca7ita income is o.ten used to measu!e a count! Js standa!d o. li4ing. A+*. Bhat is Kote on AccountC AnsD A 4ote-on account is basicall a statement ,9he!e the go4e!nment 7!esents an estimate o. a sum !eEui!ed to meet the e:7enditu!e that it incu!s du!ing the .i!st th!ee to .ou! months o. an election .inancial ea! until a ne9 go4t is in 7lace, to kee7 the machine! !unning. A+$. Di..e!ence bet9een Kote on Account and 0nte!im BudgetC AnsD Kote-on-account deals onl 9ith the e:7enditu!e side o. the go4e!nmentJs budget, an inte!im Budget is a com7lete set o. accounts, including both e:7enditu!e and !ecei7ts. A++. Bhat is SD/ >S7ecial D!a9ing /ights) C AnsD The SD/ is an a!ti.icial cu!!enc c!eated b the 025 in $%(%. SD/s a!e allocated to membe! count!ies and can be .ull con4e!ted into inte!national cu!!encies so the se!4e as a su77lement to the o..icial .o!eign !ese!4es o. membe! count!ies. A+,. Bhat is S8L - S7ecial 8conomic Lone C AnsD S8L means is the one o. the 7a!t o. go4e!nment?s 7olicies in 0ndia. A s7ecial 8conomic <one is a geog!a7hical !egion that economic la9s 9hich a!e mo!e libe!al than the usual economic la9s in the count! . A+&. Bhat is O7en 2a!ket o7e!ations>O2O)C AnsD The bu ing and selling o. go4e!nment secu!ities in the o7en ma!ket in o!de! to e:7and o! cont!act the amount o. mone in the banking s stem b /B0. A+'. Bhat is 2ic!o C!editC AnsD 0t is a te!m used to e:tend small loans to 4e! 7oo! 7eo7le .o! sel.-em7lo ment 7!o@ects that gene!ate income, allo9ing them to ca!e .o! themsel4es and thei! .amilies. A+(. Bhat is ;iEuidit Ad@ustment 5acilit >;A5)C AnsD A tool used in moneta! 7olic that allo9s banks to bo!!o9 mone th!ough !e7u!chase ag!eements. A+). Bhat is /T3S S stem - /eal Time 3!oss SettlementC AnsD /T3S s stem is a .unds t!ans.e! mechanism 9he!e t!ans.e! o. mone takes 7lace .!om one bank to anothe! on a J!eal timeJ and on Jg!ossJ basis. Settlement in J!eal timeJ means 7a ment t!ansaction is not sub@ected to an 9aiting 7e!iod. A+1. Bhat is Bancassu!anceC AnsD 0t is the te!m used to desc!ibe the 7a!tne!shi7 o! !elationshi7 bet9een a bank and an insu!ance com7an 9he!eb the insu!ance com7an uses the bank sales channel in o!de! to sell insu!ance 7!oducts. A+%. Bhat is Bholesale P!ice 0nde:>BP0)C AnsD The BP0 is the inde: used to measu!e the changes in the a4e!age 7!ice le4el o. goods t!aded in 9holesale ma!ket. A total o. &,' commodit 7!ices make u7 the inde:. 0t is a4ailable on a 9eekl basis. A,*. Bhat is Consume! 7!ice 0nde:>CP0)C AnsD 0t is a measu!e estimating the a4e!age 7!ice o. consume! goods and se!4ices 7u!chased b households. A,$. Bhat is a Debentu!eC AnsD A debentu!e is basicall an unsecu!ed loan to a co!7o!ation. A t 7e o. debt inst!ument that is not secu!ed b 7h sical asset. Debentu!es a!e backed onl b the gene!al c!edit9o!thiness and !e7utation o. the issue!. A,+. Bhat is a hedge .undC AnsD MHedge? means to !educe .inancial !isk. A hedge .und is an in4estment .und o7en to a limited !ange o. in4esto!s and !eEui!es a 4e! la!ge initial minimum in4estment. A,,. Bhat is 5CCBC AnsD A 5o!eign Cu!!enc Con4e!tible Bond >5CCB) is a t 7e o. con4e!tible bond issued in a cu!!enc di..e!ent than the issue!?s domestic cu!!enc .