1).Among the following which rates is decided by the market condition and not by RBI?

Inflation Rate b) Bank Ratec) SLRd) CRR

2).Which among the following institutions is NOT directly associated with the financial sector in India?
SEBIb) Planning Commissionc) BSEd) BIFR
3).Where was the first Share Market in India was established?
Kolkatab) Delhic) Mumbaid) Gujarat
4).Which of the following is a characteristic of a capital market instrument?
Long Maturityb) Marketability c) Liquidityd) All of the above
5).T-bills are the financial instruments initially sold by______ to raise funds.a) The governmentb) The private Sector
Banksc) The Public Sector Banksd) Corporate Companies
6).Among the following which is not a money market instruments?
a) Treasury Billb) Treasury Bondc) Commercial Paperd) Negotiable Certificates
7).Money Lent for One day is called as_______.
a) Term Moneyb) Notice Moneyc) Call Moneyd) None of these
8).Among the following statement which is NOT correct about prudential norms of RBI?
a) Lending of Scheduled Commercial banks, on a fornightly average basis, should not exceed 35% of their capital
fund
b) Banks are allowed to lend a maximum of 25% of their capital fund on a fortnightly basis
c) Banks are allowed to borrow a maximum of 125% of their capital fund on any day, during o fortnight.
d) Borrowings by scheduled commercial banks should not exceed 100% of their capital fund.
9).A short term credit investment created by a non-financial firm and guaranteed by a bank to make payment is
called________.
a) Treasury Bill Marketb) Collateral Loan Marketc) Repo Marketd) Bankers Acceptance Market
10).Money lent for 15 days or more in inter-bank market is called______.
a) Notice Moneyb) Call Moneyc) Term Moneyd) None of these
1).What will happen if the RBI increases the Cash Reserve Ratio?
a) All other banks will decreases its interest rate
b) All other banks will increase its interest rate
c) The value of money multiplier increases
d) The value of money multiplier decreases
2).Which is the first share market that was established in India?
a) Mumbaib) Kolkatac) Delhid) Hyderabad
3).Commercial paper is a short term security issued by _______ to raise funds .
a) National Stock Exchange b) Large and well known companiesc) Commercial Banksd) RBI
4).Among the following, which is NOT a money market instrument?
a) Repob) Commercial Paperc) Treasury Bondd) Treasury Bill
5).Which of the following types of institutions operates in the call money market only as lender?
a) State Bank of Indiab) Commercial Bankc) SBId) Insurance Companies
6).What is the name of the organization which was established by State bank of India to buy and sell the Government
Securities?
a) SBI Gilts Limitedb) SBI Securities Limitedc) SBI Loans Limitedd) SBI Gibbs Limited
7).What is the money, which was accepted temporary in lieu of gold?a) Grass Moneyb) Fiat Moneyc) Gold Moneyd)
Fluid Money
8).Among the following terms which is NOT related to Banking and Finance?
a) Heirb) Line of Creditc) Annuityd) Lipitor
9).In India, the coins are minted at_______.a) Kolkatab) Noidac) Mumbaid) All of these
10).What is the name of the Act which was specially formed to deal with the problems of Non-performing assets in the
banking?
a) Management of Non-Performing Assets Actb) Industrial Coverage Actc) SARFAESI Actd) None of these
a)

a)

a)

a)

1).Particular branch of a bank which has under taken the foreign exchange

business directly is called as ______ of

foreign exchange.
a) Foreign Dealers
b) Overseas Branches
c) Exchange Branches
d) Authorized dealers
3).Among the following which has NOT included in the Financial Literacy?
a) How to Minimize the risks
b) How to reinvest the money earned
c) How to invest the funds
d) None of the above
4).What is the name of the loans, which was given to low income group with small amount?
a) No Frills Loans
b) Cash Credit
c) Rural Credit
d) Micro Credit
10).Among the following which is NOT classified as a commercial bank?
a) Regional Rural Bank
b) Private Sector Bank
c) Foreign Bank
d) Urban Cooperative Bank

1).What is mean by money laundering?

a) Money acquired through criminal source
b) Money acquired from drug trafficking

c) Process of conversion of money obtained illegally to appear to have originated from legitimate sources
d) Money acquired from undisclosed sources and deposited in foreign banks
4).Among the following which is not a primary function of a bank?
a) Facilitating import of goods
b) Granting Loans
c) Selling Gold /Silver Coins
d) Issuing Bank Draft
6).Reserves which can act as a liquidity buffer for commercial banks during crisis times are_______.
a) CAR
b) CRR & SLR
c) CRR
d) SLR
a)
b)
c)
d)

7).Saving Bank accounts are opened by________.

Cooperative banks for savings
Trading entities, manufacturing entities and individuals for saving purposes
Individuals for saving purposes
Traders and Manufactures for business purposes

8).A customer drawing a cheque on a bank has a right to________.

a) Stop payment of the cheque before it is paid
b) Stop payment of the cheque before it is issued
c) Take back the cheque from the bank after it is paid
d) Stop payment of the cheque after it is paid
10).Which is not a salient feature of a debit card?
a) No bad debts to banks and no suits for recovery
b) No interest earning for banks
c) Work like a normal withdrawal slip
d) 45 days credit is given to the card holder