Sample Questions

 Higher the CRR, ------- the amount available to banks for lending or investment.
(a) Lower
(b) Higher
(c) Greater
(d) CRR does not have any effect on the bank lending

 Statutory Liquidity Ratio (SLR) is maintained in the form of:

(a) Gold and approved government securities
(b) Cash
(c) Current account balance
(d) Both (b) and (c)

 Providing Financial Consultancy Services to help Businesses raise capital fall under:
(a) Retail Banking
(b) Core Banking
(c) Investment Banking
(d) Wholesale Banking

 Which of the following is not true about Foreign Banks?

(a) Foreign Banks have to follow regulations of home and host countries
(b) Foreign banks have to follow regulations of home country only
(c) Foreign banks have to follow regulation of host country only
(d) Foreign banks are not under the regulations of RBI

 Which is considered as a differentiated bank?

(a) Regional Rural Banks
(b) Cooperative banks
(c) Small Finance Banks
(d) Commercial banks

 As per government guidelines, all commercial banks have a priority sector lending target of
40% of net bank credit. Priority sector does not include:
(a) Export credit
(b) Wholesale Credit
(c) Housing
(d) Agriculture

 In the pre-independence era, most banks failed owing to large exposure to ----------- trades.
(a) Speculative
(b) Commercial
(c) Export
(d) Wholesale
 Interest rate de-regulation means:
(a) Partly controlled by RBI
(b) Fully controlled by SEBI
(c) Partly controlled by RBI
(d) No control by RBI

 Which of the following is true about Foreign Banks?

(e) Foreign Banks have to follow regulations of home and host countries
(f) Foreign banks have to follow regulations of home country only
(g) Foreign banks have to follow regulation of host country only
(h) Foreign banks are not under regulations of RBI

 Post-nationalization, the banking sector was successful at achieving ---------- participation.

(a) Class
(b) Mass
(c) Organizational
(d) Urban

 Overdraft limits are given to business entities to meet ------------ mismatches.

(a) Short term
(b) Long term
(c) Permanent
(d) Temporary

 Which is not a method of charge creation?

(a) Assignment
(b) Transmission
(c) Lien
(d) Pledge

 Tina borrows Rs.1 lac from ICICI Bank against gold jewellery deposited by her. Here, the
pledgee is:
(a) ICICI Bank
(b) Tina
(c) Gold jewelry
(d) Borrower

 Which is a feature of pledge?

(a) Pledger takes possession of assets
(b) Pledgee takes possession of assets
(c) Debtor takes possession of assets
(d) Pledgee gives possession of assets

 An agreement which is not enforceable by law is called a ------------ agreement.

(a) Void
 (b) Valid
(c) Illegal
(d) Voidable

 Which one is NOT true about promoters of Private Sector Banks?

(a) Companies require 10 years of sound financial track record
(b) NOFHCs can be promoters of Private Sector Banks
(c) NBFCs can be promoters of Private Sector Banks
(d) One must be a large business house with multiple businesses to promote a bank

 Liberalization refers to --------- of government restrictions in areas of social and economic

policies.
(a) Promotion
(b) Extension
(c) Relaxation
(d) Imposition

 To control excess liquidity, the RBI will ------- the repo rates.
(a) Increase
(b) Decrease
(c) Keep unchanged
(d) Alter

 Eligible securities under Repo and Reverse Repo are:

(a) Equity shares
(b) Bonds
(c) G-sec
(d) RBI bonds

 RBI’s --------- helps banks to adjust their daily liquidity mismatches.

(a) CRR
(b) SLR
(c) LAF
(d) OMO