Multiple Choice Questions on BANKING
Content
Multiple Choice Questions ON
BANKING, FINANCE AND ECONOMY
Reply
Banking related general awareness, Banking related General awareness
-important, Economics, Finance
7:41 AM
A+ASHARE ON PRINTPRINTSHARE ON EMAILEMAIL
1. The tenth Five-Year Plan period is :
a) 2000-05
b) 2001-06
c) 2002-07
d) 2004-2009
e) 2005-
2010
2. Indian corporates can now invest in joint ventures and subsidiaries
abroad to the extent of ______% of their net worth.
a) 200
b)
150
c) 100
d)
75
3. Minimum period of a Certificate of Deposit is :
a) 15 days
b)
30 days
c)
10 days
d)
7 days
4. To accelerate growth of services exports from India and to create a
unique brand, a new scheme called ‘_____’ has been introduced in the
New Foreign Trade Policy.
a) India Service
Served from India
b) India Calling
c) Incredible India
d)
5. The New Foreign Trade Policy envisages India’s share in merchandise
trade to ________ within the period 2004-09.
a)
double
b) treble
c) rise by 50%
d) rise by
80%
6. Hybrid capital instruments (debt / equity) form part of ______ capital.
a)
Tier II
b) Tier I
c) Paid up
d) Preference
share
7. A customer has been defined in :
a) Banking Regulation Act
Anti-Money Laundering Act
b) Negotiable Instruments Act
d) KYC guidelines
c)
8. A Medium Enterprise is defined as one in which investment in plant and
machinery is over the SSI limit, but less than Rs.
_____.
a) 5 cr.
b) 10 cr.
c) 25 cr.
d)
50 cr
9. The BSE Sensex consists of a basket of ___ stocks.
a) 50
b) 100
c) 30
d) 66
10.
The Government of India has recently announced a scheme for
providing short term loans to farmers at concessional rate of ____% p.a.
up to an amount of Rs.___ lac.
a) 7, 1
b) 7, 3
c)
5, 1
d)
5, 3
11.The provision to be made on Standard assets for the current year is :
a) 0.25%
b) 0.40%
c) 0.40% for all loans except loans to
Priority Sector
d) 0.40% on all loans, except loans to direct Agri &
SME segments, for which the provision is 0.25%
12.
Clause 49 of the Listing Agreement of SEBI refers to :
a) announcing of quarterly results of listed companies
b) restriction of FDI in public sector banks
c) corporate governance and financial penalties including delisting for companies
who do not appoint the required number of independent directors on their
board
d) None of these
13.
Which bank in India ranks number one in India in terms of market
capitalization?
a) SBI
b) ICICI Bank
c)
UTI Bank
d) IDBI
Bank
14.
Which is the first mutual fund in the country to offer redemption of
its units through ATMs of HDFC Bank and VISA ?
a) Reliance MF
b)
UTI MF
c) SBI MF
d) PruICICI
MF
15.
The stake of SBI in its joint venture with TCS, C-Edge, is :
a) 51%
b) 40%
c) 60%
d) 49%
16.
A Bank’s aggregate capital market exposure has been capped at
___% of its net worth.
a) 5
b)
10
c)
40
d) 25
17.
Financial Intelligence Unit is set up by ___________ for tightening
anti-money laundering measures.
a) RBI
b) Central Vigilance Commission
Department
d) Finance Ministry, GOI
c) Income Tax
18.
Credit limits to dealers in agricultural machinery up to Rs.___ lacs
are classified as priority sector advances.
a)
25
b) 30
c)
40
d) 20
19.
The minimum maturity period for Commercial Paper (CP) is
_____ days.
a)
14
b)
30
c)
45
d) 7
20.
The first SEZ promoted by a corporate is :
a) Reliance SEZ, Haryana
b) SEEPZ, Mumbai
c) Mahindra SEZ, Pune
d) None of the above
21.
Value added tax (VAT) is a type of tax levied on value added by
any economic activity, and covers :
a)
b)
c)
d)
commodities at the manufacturing level
commodities at the manufacturing, wholesaling, and retailing level
commodities at the manufacturing and wholesaling level
commodities and services at the manufacturing, wholesaling, and retailing
levels
22.
The Sarbanes Oxley Act of USA concerns :
a) aims at improving investor confidence in American corporates
b) improving quality of corporate disclosures and reporting, and increasing the
responsibility of officers and directors of companies in these disclosures
c) strengthen the independence of accounting firms
d) all the above
23.
a)
b)
c)
d)
e)
The Information Technology Act, 2000 is concerned with :
legal recognition of digital signatures
definition of various types of computer crimes and penalties for the same
appointment of certifying authorities for issuing digital signatures
recognition of digital records and their admissibility as evidence in courts
all of the above
24.
As per RBI benchmark for allocation of bank credit, women
beneficiaries should receive at least ____% of net bank credit.
a)
5
b)
10
c)
15
d)
1
25.
Export credit should be a minimum of ___% of net bank credit for
scheduled commercial banks.
a)
12
b) 15
c)
10
d)
3
26.
Loans to software industry up to a limit of Rs._______ are
classified as priority sector advances.
a) 50 lacs
b) 100 lacs
c) 1000 lacs
d) 500 lacs
27.
The Demutualisation Ordinance amending the Securities
Contracts (Regulation) Act, 1956 deals with :
a) operations of foreign mutual funds in India
b) rules and regulations for issue of different securities in the capital market
c) compulsory corporatisation of stock exchanges to bring about transparency
and efficiency in their operations
d) process of converting paper based securities into electronic form
28.
The WTO Agreements cover global trade in :
a) goods
countries
b) services c) intellectual property
e) all of these f) a, b & c
d) investments in other
29.
Which committee had recommended the amalgamation of RRBs
promoted by sponsor banks?
a) Mitra
b)
Narasimhan
c) Rakesh Mohan
d)
Malhotra
30. India has entered into Comprehensive Economic Co-operation Agreeement
with which of the following countries recently:
a) Singapore
b) USA
c) Australia
d) None of these
31.
Bharat Nirman is a four-year business plan embarked by the
Government of India for providing rural infrastructure in the areas of :
a) irrigation & water supply b) electrification c) housing
telecommunication & connectivity e) all the above
32.
a)
b)
c)
d)
d)
NIXI stands for :
National & International Exchange of India
National Internet Exchange of India
Notional Inter Exchange interest
None of the above
33.
South Asian Free Trade Area (SAFTA) covers _____________
countries.
a)
b)
c)
d)
the seven countries who are members of SAARC
all countries in South East Asia
All countries in South and South-East Asia, and Australia and New Zealand
Pakistan, Bangladesh, Bhutan, Sri Lanka, Nepal and Maldives
34.
MCA21 is :
a) e-governance project of the Ministry of Company Affairs
b) will enable companies to file their returns online with the Registrar of
Companies
c) launched as a pilot in Coimbatore, with plans to extend to Delhi shortly
d) all the above
35.
The name of Microsoft Corporation India’s IT initiative for setting
up IT kiosks in rural areas is named :
a) Aadhar
36.
b) Saksham
c) Swadhan
d) Shakthi
The new chairman of the US Federal Reserve is :
a) Alan Greenspan
George Bush
b) Gordon Brounes
c) Ben Bernanke
d)
37.
Which credit card company has tied up the Railways to issue a
credit cum loyalty card?
a) ICICI Cards b) SBI Cards
c) ABN Amro Cards d) Citibank
38.
Financial Network Services, the Australian banking software firm,
has recently been acquired by :
) Wipro
b) TCS
c) Infosys
d) HCL
39.
SBI has applied to open branches in Pakistan, as per the recent
agreement between India and Pakistan, at :
a) Lahore and Karachi
c) Rawalpindi and Sindh
b) Islamabad and Karachi
d) Lahore and Islamabad
40.
The risk weightage on banks’ exposure to capital market
exposures is :
a) 100 %
b) 125%
c) 150%
d)
200%
41.
Export Oriented Units can retain _____% of their export earnings
in foreign currency.
a) 50
b) 100
c)
80
d)
66.67
42.
Foreign investment in private banks, (in aggregate including FDI,
FII, NRI, etc.) in India is permitted up to ____%
a)
99
b) 74
c) 49
d) 24
43.
The minimum shareholding of RBI in SBI should be ___% as per
SBI Act.
a) 50
44.
b) 59
d)
55
RBI pays interest on CRR balances of banks at _____.
a) Bank Rate
d) Zero %
45.
c) 51
b) Repo Rate
c) Bank Rate minus 2%
The three pillars of the Basel II framework are :
a) Minimum capital requirements
b)
Asset – Liability
Management
c) Market discipline
d) Supervisory review e) all the above f)
a, c &d
46.
a)
The Code of Bank’s Commitment has been issued by :
RBI
b)
SBI
c)
IBA
d) BCSBI
47.
For declaring dividend, banks should have a CRAR of at least
____% for the preceding 2 years, and net NPA of less than _____%.
a) 11, 3
b) 9, 7
c) 10, 5
d)
9, 5
48.
After ________, foreign banks operating in India will be freed of
RBI imposed restrictions on their operations and treated on par with
Indian banks.
a) April, 2008
b) April, 2009
c) April, 2010
d) April,
2015
49.
Under Section 19(1) of the Banking Regulation Act, 1949, parabanking activities refer to :
a) leasing
b) hire purchase finance c) factoring
operations e) all the above f) only a, b & c
d)
credit card
50.
The percentage of profit that a bank is required to transfer to its
reserve fund as per Banking Regulation Act is ______%.
a)
25
b)
20
c)
30
d)
50
ANSWERS:
1
11
C
D
2
1
3
1
4
1
D
E
B
2
1
2
2
2
3
2
4
2
A
C
3
D
13 B
4
D
14 A
5
A
15 D
6
B
16 C
7
D
17 D
8
B
18 B
9
C
19 D
10 B
20 C
D
23 E
24 A
25 A
26 B
27 C
28 F
29 B
30 A
C
33 A
34 D
35 B
36 C
37 B
38 B
39 A
40 C
B
43 D
44 D
45 F
46 D
47 B
48 B
49 F
50 B
BANKING, FINANCE AND ECONOMY
Reply
Banking related general awareness, Banking related General awareness
-important, Economics, Finance
7:41 AM
A+ASHARE ON PRINTPRINTSHARE ON EMAILEMAIL
1. The tenth Five-Year Plan period is :
a) 2000-05
b) 2001-06
c) 2002-07
d) 2004-2009
e) 2005-
2010
2. Indian corporates can now invest in joint ventures and subsidiaries
abroad to the extent of ______% of their net worth.
a) 200
b)
150
c) 100
d)
75
3. Minimum period of a Certificate of Deposit is :
a) 15 days
b)
30 days
c)
10 days
d)
7 days
4. To accelerate growth of services exports from India and to create a
unique brand, a new scheme called ‘_____’ has been introduced in the
New Foreign Trade Policy.
a) India Service
Served from India
b) India Calling
c) Incredible India
d)
5. The New Foreign Trade Policy envisages India’s share in merchandise
trade to ________ within the period 2004-09.
a)
double
b) treble
c) rise by 50%
d) rise by
80%
6. Hybrid capital instruments (debt / equity) form part of ______ capital.
a)
Tier II
b) Tier I
c) Paid up
d) Preference
share
7. A customer has been defined in :
a) Banking Regulation Act
Anti-Money Laundering Act
b) Negotiable Instruments Act
d) KYC guidelines
c)
8. A Medium Enterprise is defined as one in which investment in plant and
machinery is over the SSI limit, but less than Rs.
_____.
a) 5 cr.
b) 10 cr.
c) 25 cr.
d)
50 cr
9. The BSE Sensex consists of a basket of ___ stocks.
a) 50
b) 100
c) 30
d) 66
10.
The Government of India has recently announced a scheme for
providing short term loans to farmers at concessional rate of ____% p.a.
up to an amount of Rs.___ lac.
a) 7, 1
b) 7, 3
c)
5, 1
d)
5, 3
11.The provision to be made on Standard assets for the current year is :
a) 0.25%
b) 0.40%
c) 0.40% for all loans except loans to
Priority Sector
d) 0.40% on all loans, except loans to direct Agri &
SME segments, for which the provision is 0.25%
12.
Clause 49 of the Listing Agreement of SEBI refers to :
a) announcing of quarterly results of listed companies
b) restriction of FDI in public sector banks
c) corporate governance and financial penalties including delisting for companies
who do not appoint the required number of independent directors on their
board
d) None of these
13.
Which bank in India ranks number one in India in terms of market
capitalization?
a) SBI
b) ICICI Bank
c)
UTI Bank
d) IDBI
Bank
14.
Which is the first mutual fund in the country to offer redemption of
its units through ATMs of HDFC Bank and VISA ?
a) Reliance MF
b)
UTI MF
c) SBI MF
d) PruICICI
MF
15.
The stake of SBI in its joint venture with TCS, C-Edge, is :
a) 51%
b) 40%
c) 60%
d) 49%
16.
A Bank’s aggregate capital market exposure has been capped at
___% of its net worth.
a) 5
b)
10
c)
40
d) 25
17.
Financial Intelligence Unit is set up by ___________ for tightening
anti-money laundering measures.
a) RBI
b) Central Vigilance Commission
Department
d) Finance Ministry, GOI
c) Income Tax
18.
Credit limits to dealers in agricultural machinery up to Rs.___ lacs
are classified as priority sector advances.
a)
25
b) 30
c)
40
d) 20
19.
The minimum maturity period for Commercial Paper (CP) is
_____ days.
a)
14
b)
30
c)
45
d) 7
20.
The first SEZ promoted by a corporate is :
a) Reliance SEZ, Haryana
b) SEEPZ, Mumbai
c) Mahindra SEZ, Pune
d) None of the above
21.
Value added tax (VAT) is a type of tax levied on value added by
any economic activity, and covers :
a)
b)
c)
d)
commodities at the manufacturing level
commodities at the manufacturing, wholesaling, and retailing level
commodities at the manufacturing and wholesaling level
commodities and services at the manufacturing, wholesaling, and retailing
levels
22.
The Sarbanes Oxley Act of USA concerns :
a) aims at improving investor confidence in American corporates
b) improving quality of corporate disclosures and reporting, and increasing the
responsibility of officers and directors of companies in these disclosures
c) strengthen the independence of accounting firms
d) all the above
23.
a)
b)
c)
d)
e)
The Information Technology Act, 2000 is concerned with :
legal recognition of digital signatures
definition of various types of computer crimes and penalties for the same
appointment of certifying authorities for issuing digital signatures
recognition of digital records and their admissibility as evidence in courts
all of the above
24.
As per RBI benchmark for allocation of bank credit, women
beneficiaries should receive at least ____% of net bank credit.
a)
5
b)
10
c)
15
d)
1
25.
Export credit should be a minimum of ___% of net bank credit for
scheduled commercial banks.
a)
12
b) 15
c)
10
d)
3
26.
Loans to software industry up to a limit of Rs._______ are
classified as priority sector advances.
a) 50 lacs
b) 100 lacs
c) 1000 lacs
d) 500 lacs
27.
The Demutualisation Ordinance amending the Securities
Contracts (Regulation) Act, 1956 deals with :
a) operations of foreign mutual funds in India
b) rules and regulations for issue of different securities in the capital market
c) compulsory corporatisation of stock exchanges to bring about transparency
and efficiency in their operations
d) process of converting paper based securities into electronic form
28.
The WTO Agreements cover global trade in :
a) goods
countries
b) services c) intellectual property
e) all of these f) a, b & c
d) investments in other
29.
Which committee had recommended the amalgamation of RRBs
promoted by sponsor banks?
a) Mitra
b)
Narasimhan
c) Rakesh Mohan
d)
Malhotra
30. India has entered into Comprehensive Economic Co-operation Agreeement
with which of the following countries recently:
a) Singapore
b) USA
c) Australia
d) None of these
31.
Bharat Nirman is a four-year business plan embarked by the
Government of India for providing rural infrastructure in the areas of :
a) irrigation & water supply b) electrification c) housing
telecommunication & connectivity e) all the above
32.
a)
b)
c)
d)
d)
NIXI stands for :
National & International Exchange of India
National Internet Exchange of India
Notional Inter Exchange interest
None of the above
33.
South Asian Free Trade Area (SAFTA) covers _____________
countries.
a)
b)
c)
d)
the seven countries who are members of SAARC
all countries in South East Asia
All countries in South and South-East Asia, and Australia and New Zealand
Pakistan, Bangladesh, Bhutan, Sri Lanka, Nepal and Maldives
34.
MCA21 is :
a) e-governance project of the Ministry of Company Affairs
b) will enable companies to file their returns online with the Registrar of
Companies
c) launched as a pilot in Coimbatore, with plans to extend to Delhi shortly
d) all the above
35.
The name of Microsoft Corporation India’s IT initiative for setting
up IT kiosks in rural areas is named :
a) Aadhar
36.
b) Saksham
c) Swadhan
d) Shakthi
The new chairman of the US Federal Reserve is :
a) Alan Greenspan
George Bush
b) Gordon Brounes
c) Ben Bernanke
d)
37.
Which credit card company has tied up the Railways to issue a
credit cum loyalty card?
a) ICICI Cards b) SBI Cards
c) ABN Amro Cards d) Citibank
38.
Financial Network Services, the Australian banking software firm,
has recently been acquired by :
) Wipro
b) TCS
c) Infosys
d) HCL
39.
SBI has applied to open branches in Pakistan, as per the recent
agreement between India and Pakistan, at :
a) Lahore and Karachi
c) Rawalpindi and Sindh
b) Islamabad and Karachi
d) Lahore and Islamabad
40.
The risk weightage on banks’ exposure to capital market
exposures is :
a) 100 %
b) 125%
c) 150%
d)
200%
41.
Export Oriented Units can retain _____% of their export earnings
in foreign currency.
a) 50
b) 100
c)
80
d)
66.67
42.
Foreign investment in private banks, (in aggregate including FDI,
FII, NRI, etc.) in India is permitted up to ____%
a)
99
b) 74
c) 49
d) 24
43.
The minimum shareholding of RBI in SBI should be ___% as per
SBI Act.
a) 50
44.
b) 59
d)
55
RBI pays interest on CRR balances of banks at _____.
a) Bank Rate
d) Zero %
45.
c) 51
b) Repo Rate
c) Bank Rate minus 2%
The three pillars of the Basel II framework are :
a) Minimum capital requirements
b)
Asset – Liability
Management
c) Market discipline
d) Supervisory review e) all the above f)
a, c &d
46.
a)
The Code of Bank’s Commitment has been issued by :
RBI
b)
SBI
c)
IBA
d) BCSBI
47.
For declaring dividend, banks should have a CRAR of at least
____% for the preceding 2 years, and net NPA of less than _____%.
a) 11, 3
b) 9, 7
c) 10, 5
d)
9, 5
48.
After ________, foreign banks operating in India will be freed of
RBI imposed restrictions on their operations and treated on par with
Indian banks.
a) April, 2008
b) April, 2009
c) April, 2010
d) April,
2015
49.
Under Section 19(1) of the Banking Regulation Act, 1949, parabanking activities refer to :
a) leasing
b) hire purchase finance c) factoring
operations e) all the above f) only a, b & c
d)
credit card
50.
The percentage of profit that a bank is required to transfer to its
reserve fund as per Banking Regulation Act is ______%.
a)
25
b)
20
c)
30
d)
50
ANSWERS:
1
11
C
D
2
1
3
1
4
1
D
E
B
2
1
2
2
2
3
2
4
2
A
C
3
D
13 B
4
D
14 A
5
A
15 D
6
B
16 C
7
D
17 D
8
B
18 B
9
C
19 D
10 B
20 C
D
23 E
24 A
25 A
26 B
27 C
28 F
29 B
30 A
C
33 A
34 D
35 B
36 C
37 B
38 B
39 A
40 C
B
43 D
44 D
45 F
46 D
47 B
48 B
49 F
50 B
