Sample Questions and Answers

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Sample Questions and Answers

• Multiple Choice

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Question 1

• Which of the following instruments is used by
  public to directly lend to the Government?
• (a) Bank Deposits
• (b) Public Provident Fund
• (c) T-Bills
• (d) Certificates of Deposit

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Question 2

• Inter-bank term money refers to borrowing among
  banks for
• (a) Overnight
• (b) Two days
• (b) More than 14 days
• (c) Less than 14 days

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Question 3

• Certificates of Deposits have to be of a minimum
  value of
• (a) Rupees 1 lakh
• (b) Rupees 10 lakh
• (c) Rupees 25 lakh
• (d) Rupees 1 crore

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Question 4

• Commercial paper can be issued
• (a) By all corporates
• (b) By all corporates with net worth of at least
  Rs. 10 crores
• (c) By all corporates with net worth of at least
  Rs. 5 crores
• (d) Can be issued only by banks

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Question 5

• Commercial Bills market is a part of
• (a) Organised money market
• (b) Unorganised money market
• (c) Stock market
• (d) None of the above

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Question 6

• Which of the following statements is not true?
• (a) Call money market deals with overnight loans
• (b) As special cases, few FIs like LIC, UTI can
  borrow in the call money market
• (c) Call loans are made on a clean basis
• (d) Is a part of organised money market

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Question 7

• A scheduled commercial bank is one
• (a) Which is included in the Second Schedule of
  the RBI Act 1934
• (b) Which is included in the Banking Regulation
  Act, 1949
• (c) Both (a) and (b)
• (d) None of the above

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Question 8

• Indigenous bankers are regulated by
• (a) Reserve Bank of India
• (b) Ministry of Finance
• (c) Registrar of Co-operative Societies
• (d) None of the above

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Question 9

• What is approximately the population size served
  by a branch currently?
• (a) 15,000
• (b) 25,000
• (c) 35,000
• (d) 65,000

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Question 10

• What is the current SLR requirements of banks?
• 40 of the deposits
• 25 of the deposits
• 31 of the deposits
• 28 of the deposits

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Question 11

• What is the CRR effective from August 4, 2007?
• 5.5
• 6.0
• 6.5
• 7.0

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Question 12

• What is the stipulated share of the priority
  sector in the net bank credit?
• 35
• 20
• 40
• 45

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Question 13

• Mutual funds are regulated by
• (a) Association of Mutual Funds of India (AMFI)
• (b) Securities and Exchange Board of India (SEBI)
• (c) Reserve Bank of India
• (d) None of the above

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Question 14

• A growth fund is
• (a) One in which the money is invested in
  equities
• (b) One in which the money is invested in
  government bonds
• (c) One in which the money is invested equally in
  equity and bonds
• (d) Money is invested only in money market
  instruments

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Question 15

• ARCIL is an example of
• (a) A financial institution
• (b) A mutual fund
• (c) An asset management company set up to acquire
  NPAs of banks
• (d) A discount and financing house