BANKING MANAGEMENT 1.

Classification of Banks on the basis of domicile a) Domestic Banks b) Foreign Banks c)

d)

()

2. Banks are classified as Public, Private and Co-operative on the basis of ownership a) b) c) d) 3. The institution which deals with Money & Credit a) Bank b) c)

()

d)

(a )

4. A bank included in 2nd schedule of RBI Act,1934 & fulfill necessary conditions a) b) Scheduled Banks c) d) 5. A bank not included in 2nd schedule of RBI Act,1934 & fulfill necessary conditions a) Non-Scheduled Banks b) c) d)

(b)

(a)

6. Activities of sale of industrial securities i.e. their origination, underwriting & and also corporate advisory for loan syndication etc., are provided by a) Merchant Bank b) c) d) (a) 7. Branch banking was initially developed in a) England b)

c)

d)

(a)

8. A big bank as a single institution & under single ownership operate through a network of branches spread all over the security is called as a) Branch Banking b) c) d) (a)

9. Indigenous banks form part of __________ of money market a) Un-organized Sector b) c)

d)

(a)

10. Scheduled and non-scheduled banks for part of _________ of Money Market a) Organized Sector b) c) d) 11. Nationalization of SBI took place on a) b) 12. ATM Means a)

(a)

c)

d) 1955

(d)

b)

c) Automated Teller Machine

d)

(c)

13. The requirement of maintaining minimum cash reserves with RBI is called a) CRR b) c) d)

(a)

14. _________ associated with electronic delivery of service s a) Virtual banking b) c)

d)

(a)

15. The post paid card holder can spend wherever, whenever within the limits fixed a) b) Credit Card c) d) 16. It is prepaid card with some started value, if used by the holder, bank debits his account a) b) c) d) Debit Card 17. RBI was established on ______ under RBI Act 1934 a) b) April 1935 c) d) 18. RBI was nationalized on a) b)

(b)

(d) (b)

c)Jan 1st 1949

d)

(c)

19. ________ as banking bankers bank & controller of credit a) b) RBI c)

d)

(b)

20. Under section 24 of Banking regulation act, 1949, all commercial banks have to maintain liquid assets in the form of cash, gold & unencumbered approved securities qua lot not less than 25% of their total demand & time deposit liabilities which is known as a) b) c)SLR d) (c) 21. Buying & Selling of securities by RBI is called a) b) c) 22. NABARD is for financing a) b) Agriculture & Rural development c) 23. One of the following is not a development bank a) IFCI b) SFCs c)SIDBI 24. SBI has a) 7

d) Open Market Operations

(d)

d)

(b)

d)YES

()

b)

c)

d)

(a)

25. Nidhis &Chit funds comes under_____________ of money market a) b) Un-organized sector c)

d)

(b)

26. The rate at which the RBI advances to the member banks against approved securities or rediscount the eligible bills of exchange and other papers a) b) c) Banks State d)

(c)

27. Phase of Nationalization a) b) 28. Phase I of Indian Banking is from a)1786 to 1969 b)

c)

d) 1786 to 1969

(d)

c)

d)

(a)

29. LIC was established __________ as a wholly owned corporation of the Govt. of India a) b) 1956 c) d) 30. GIC was formed in the year a)1972 b) 31. Regional Rural banks comes under a) b) Commercial Banks

(b)

c)

d)

(a)

c)

d)

(b)

32. ________ bank proved the required support and assistance to set up a business for exporting products abroad or importing products form foreign countries for sale in our country. a) b) c)EXIM Bank d) (c) 33. The system of banking under which a bank place its fund in risk-free assets with maturity period matching its liability maturity profile. So that there is no problem relating to AL match & the quality of assets remains intact without leading to the emergence of sub-standard assets. a)Narrow Banking b) c) d) (a) 34. The act of overdrawing from a bank account is a) b) c)Overdraft 35. Term loans are loans which are granted for a tenure of a) b) More than a year c)

d)

(c)

d)

(b)

36. A contractual arrangement/transaction in which a party owing an assets, equipment provides the asset for use to another party(transfer the right to use the equipment to the user over a certain/for an agreed period of time for consideration in the form of/in return for periodic payment/rental with or without a further payment (premium)). a)Lease b) c) d) (a) 37. Till the 1950s the foreign banks were called a) b) Exchange Banks

c)

d)

(b)

38. The ability to produce cash on demand, and the banker must be able to meet these liabilities whenever they are demanded a) b) c) d) Safety (d)

39. Do not keep all the Eggs in one Basket. The statement is related to a) b) Diversification of Risk c)

d)

(b)

40. Deposits, Borrowing from other banks & Capital form part of ______________ of bank a) b) c)Liabilities/Sources d) 41. Loans, Securities, Reserves for part of _________ of Bank a) b) c)

(c)

d) Assets or Uses

(d)

42. The categories of assets (advances, Bills discounted, Overdraft, cash credits etc.,) which ease to generate income for the bank. a) b) NPAs c) d) (b) 43. A set or group or combination of securities hold by an investor a) b) c) 44. ________ lend from deposits received form general public a)Banks(Org. Sector) b) In organized Sector c)

d) Portfolio

(d)

d)

()

45. The deposits where customer expect to be able to withdraw money at anytime a) b) c) d) Demand Deposits 46. Any Deposit which is not repayable on demand is a) b)A Time Deposit c)

(d)

d)

(b)

47. The first industrial development bank set up by the Govt. of India in July 1948 was a) b) c) d) IFCI (d) 48. IFCI offers financial assistance to large& medium seized industrial units in a)Private, Public & Cooperatives b) c) d) 49. NSE, OTCEI, SHCIL & STCI are promoted by a) b) IFCI 50. IDBI was established in the year a) b)

(a)

c)

d)

(b)

c)

d) July 1964

(d)

51. ________ was formed as fully owned subsidiary of RBI on July 1964 a) b) c)IDBI

d)

(c)

52. ICICI was established on a) b) 1955

c)

d)

(b)

53. ICICI was formed as __________ sector development bank a)Private Sector b) c) 54. ICICI full form a)Industrial Credit and Investment Corporation of India b) c) d) 55. SIDBI was established as a wholly named subsidiary of a) b) c)IDBI

d)

(a)

(a)

d)

(c)

56. SIDBI was established under the small industries development of India Act a) b) c) d)1989 57. SFCs are set up under a) b)

(d)

c)SFC act, 1951

d)

(c)

58. The development institution which meet the credit needs of Medium & Small Scale Industries located in backward areas in different states in the country is a)SFC b) c) d) (a) 59. ______ deal is a contract to buy securities and then to sell them back at a particular price and date a) b) REPO c) d) (b) 60. ________ involves a contract to sell securities and then to repurchase it at a stated future date for a slightly higher price a)Reverse REPO b) c) d) (a) 61. A_____________ shows that a deposit in made with a bank for a fixed period of time and it will be repaid with interest at the end of the maturity period a) b) c)Certificate of Deposit d) (c) 62. when an institution accepts a deposit, it is said to a) b) c)

d)Issue a CD

(d)

63. When an institution makes a deposit or buys a certificate is the secondary market, it is said to a)Hold a CD b) c) d) (a)

64. A number of banks join together & form a syndicate to save a large corporate customers this is called a) b) c)Loan Syndication d) (c) 65. ________ means the accepting for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise a)Banking b) c) d) (a) 66. The agency responsible for impartially investigating complaints from customers against public authority, institution or a company a) b) Ombudsman c) d) (b) 67. The securities which are created with the help of finance made available by the bank are a)Primary Securities b) c) d) 68. The form of impersonal security, such as Land, Buildings & Machinery comes under a) b) Tangible Securities c) d) 69. _______ Securities are intangible securities a) b)

(a)

(b)

c)Personal

d)

(c)

70. Promissory Notes, Bills of Exchange come under_______ Securities a)Personal b) c) 71. Government Securities are example for a) b)

d)

(a)

c)Personal

d)

(c)

72. _________ loans are essentially short term loans that are granted pending disbursement of sanctioned term loans a) b) Brtidge Loans c) d) (b) 73. Education, Automobile loans come under a)Consumption Loans b)

c)

d)

(a)

74. If a loans is taken for buying capital assets as wells as for meeting working capital requirements, it is called a) b) c)Composite Loan d) (c) 75. In july 1955, Govt. of India nationalized the ___________ to create SBI a)Imperial bank of India b) c) d)

(a)

76. According to Sec.24 of Banking Reg. Act 1949, every banking company in India is required to maintain cash, gold & unencumbered approved securities equivalent to an amount which is not less than 25% of its time & demand liabilities at the close of business on any day which is called a) b) SLR c) d) (b) 77. Narasimham Committee recommended setting of _________ to take over from the Nationalized banks and financial institutions, a portion of their bad and doubtful debts at the discount. a)Asset Reconstruction Fund (ARF) b) c) d) (a) 78. _________ gave recommendations on weak banks a) b) c)Varma Panel 79. _________ gave recommendations on Corporate Governance a) b) c)Varma Panel

d)

(c)

d)

(c)

80. Capital to risk weighted assets ratio was fixed ___% as part of Capital adequacy norms as suggested by Narasimham Committee a)8% b) c) d)

(a)

81. As per recommendations of the Narasimham Committee 1991, SLR should be reduced from 38.5% of the net demand & time liabilities of banks to ______% over the next 5 years. a) b) c) d)25% (d) 82. CRR Should also be reduced from _______% to 3 to 5% a) b) c)15%

d)

(c)

83. Quality of Control should be removed. This is one of the recommendations of ______ a) b) c)Narasimham Committee d)

(c)

84. _________ was setup in 1972 to improvise & regularize the working of indigenous bankers in India a) b)Banking Commission c) d) (b) 85. ________ is a selective credit control measure used by RBI, through which it sends letters to the commercial banks to use restrain over their credit policies in general & in respect to certain commodities & unsecured loans in particular a) b) c)Moral suasion d) (c) 86. 87. 88. 89.

90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. 106.