"When a customer deposits cheque with a bank for clearing, the customer becomes

a _______."

(a) Debtor
(b) Principal
(c) Creditor
(d) Agent
"While granting a bank license, RBI considers all of the following, except ________."

(a) ability to pay depositors

(b) price of equity share of company
(c) character of proposed management
(d) whether public interest will be served by grant of license to the company
Which of the following is true of Reverse Repo rate?

(a) Determined by free market forces

(b) Lower than repo rate
(c) benchmark for long term rates
(d) Part of funding cost for commercial banks
_________ is a key determinant indicating availability of banking services for the
entire economy.

(a) RTGS
(b) NEFT
(c) Reach of bank network
(d) Number of bankers
The minimum amount for secured lenders to take the benefit of SARFAESI is
_______.

(a) Rs. 1 lakh

(b) Rs. 5 lakh
(c) Rs. 10 lakh
(d) Not specified
RTGS & NEFT use
a) MICR
b) DNS
c) IFSC
d) UTR Number
Reverse repo rate is the rate at which _____ lends to __________
a) Banks, RBI
b) RBI, banks,
c) RBI, government
d) Government, RBI
 A centralized database to online connectivity to branches as well as ATM networks
that have been adopted by all major banks of India is
a) Specialized banking
b) Investment banking
c) Mobile banking
d) Core banking
A debtor makes default in repaying a bank loan. Which type of risk is this?
a) Liquidity risk
b) Operational risk
c) Credit risk
d) Interest rate risk
If the economy is facing an inflationary trend, what would be the trend in the
pricing of bank loans?
a) constant trend
b) Increasing trend
c) Decreasing trend
d) None of these
Credit Information Companies (Regulation) Act was passed in which year?
a) 1956
b) 1991
c) 2005
d) 2013
EBT stands for
a) Electronic Beginning Transfer
b) Electronic Benefit Transfer
c) Electronic Belated Transfer
d) Electronic Big Transfer

Para-banking activities refer to

a) Hire purchase financing & leasing
b) Term deposits
c) Credit cards
d) Savings accounts
The bank account that doesn’t require any balance to be maintained is
a) Zero balance account
b) Nil balance account
c) No balance account
d) Nil balance account
The central bank of the country offers its services to I) Commercial Banks II)
Government III) Financial Institutions IV) SEBI
a) I
b) II
c) I, II, and III
d) All the above
"Each of the following has become a problem with MFIs in India, except _______."

(a) Excessive financing

(b) reach
(c) financing for consumption
(d) inappropriate modes of recovery
Which of the following is / are demand liabilities?

(a) Cash Certificates

(b) Gold deposits
(c) Current deposits
(d) All of the above
"When a customer opts for a safe deposit locker, the bank becomes a _______."

(a) Debtor
(b) Creditor
(c) Lessee
(d) Lessor
Investment in NRO may be made through _________.

(a) Remittance from abroad

(b) Transfer from NRE
(c) Either of the above
(d) None of the above
Which of the following are covered in the Banking Ombudsman Scheme?

(a) Scheduled Primary Co-operative Banks

(b) RRBs
(c) Both of the above
(d) None of the above
Which of the following is / are RBI conditions applicable for banks declaring
dividends?

(a) To be paid out only from current year profits

(b) Minimum capital adequacy of 9% to be maintained
(c) Net NPAs to be below 7%
(d) All of the above
Which of the following is a secondary identifier _______.

(a) Date of Birth

(b) Nationality
(c) Both of the above
(d) None of the above
Higher interest based on age is offered in which of the following accounts?

(a) Savings
(b) RD
(c) FD
(d) All of the above

Investment in FCNR may be made through ________.

(a) Remittance from abroad

(b) Transfer from NRE
(c) Either of the above
(d) None of the above
In which year was the Banking Regulation Act introduced?
a) 1947
b) 1952
c) 1948
d) 1949
Which was the first bank to be established in India?
a) General Bank of India
b) Hindustan Bank
c) Bank of Hindustan
d) Presidency Bank
In which year did State Bank of India start operations?
a) 1921
b) 1955
c) 1947
d) 1809
In which year did the 2nd phase of bank nationalization take place in India?
a) 1980
b) 1969
c) 1949
d) 1947
Which of these is not a non-fund-based service offered by banks?
a) Letter of credit
b) Recurring Deposit
c) Bank guarantee
d) Document and bill collection
Investment banking does not offer which of the following services?
a) Asset management
b) Equity research
c) Term lending
d) IPO facilitation
Which of these is not a function of RBI?
a) Controlling money supply and credit
b) Managing foreign exchange
c) Offering term deposits
d) Banker to the government
Which of these is not a commercial bank?
a) Foreign bank
b) Public sector bank
c) Small finance bank
d) Cooperative bank
Which of these can become a sponsor bank for a Regional Rural bank?
a) Bank of Baroda
b) Axis Bank
c) HDFC Bank
d) ICICI Bank
In which of these foreign banks you can’t open an account in India?
a) Standard Chartered Bank
b) Deutsche Bank
c) Wells Fargo
d) DBS Bank
Which of these documents is not required to open a bank account for a company?
a) Memorandum of Association
b) Articles of Association
c) Trade License
d) Certificate of Incorporation
What is the tenure for a fixed deposit in a bank?
a) 10 days to 10 years
b) 7 days to 15 years
c) 7 days to 10 years
d) 10 days to 15 years
For which of the following reasons businesses do not require overdraft?
a) To meet temporary requirements of cash so that financial commitments are
fulfilled.
b) To obtain quick access to funds with minimal documentation.
c) They need to pay interest only on the overdrawn amount
d) For setting up new manufacturing facilities
Which of these is not a party to a Letter of Credit?
a) Issuing Bank
b) Confirming Bank
c) Bargaining Bank
d) Advising Bank
Which of these is not an example of internet banking?
a) App-based banking
b) Digital TV banking
c) SMS banking
d) NEFT
Which of these is a disadvantage of internet banking?
a) Less time consumption
b) User-friendly
c) Prone to hacking
d) More efficient rates
Which of these is not a security measure for internet banking?
a) Changing password regularly
b) Writing the ATM PIN on the ATM card cover
c) Using licensed anti-virus software
d) Monitoring the account regularly
Among the following, which one is not a principle of lending?
a) Safety
b) Profitability
c) Liquidity
d) Indecisiveness
How not to maintain a good credit score?
a) Pay credit card bills on time
b) Default on loans
c) Keep a watch on your credit score from time to time
d) Don’t delay loan repayments
Which of the following is an unsecured loan?
 a) Home loan
b) Cash credit
c) Gold loan
d) Overdraft
Is every homeowner eligible for a reverse mortgage loan?
a) Yes, without any conditions attached
b) Yes, provided they stay in the metro cities
c) Yes, provided they are senior citizens
d) Yes, provided the property value is above Rs. 25 lakhs
Which of these is an example of a pledge?
a) Gold loan
b) Loan against property
c) Loan against securities
d) Loan against FD
What is the maximum amount for auto loans for salaried applicants?
a) Up to 4 times the annual salary
b) Up to 5 times the annual salary
c) Up to 3 times the annual salary
d) Up to 6 times the annual salary
Which of these is not a consumer durable loan?
a) Loan for buying TV
b) Loan for buying mobile
c) Loan for buying washing machine
d) Loan for extending the house
Banks providing locker facility to customers is an example of which type of bank-
customer relationship?
a) Debtor-creditor
b) Lessee-lessor
c) Bailee-bailor
d) Agent-principal