1. What is the difference between CVC1 and CVC2?

CVC2 is used in card-not-present transaction and CVC1 is used in card-present transaction

There is no difference between CVC1 and CVC2
CVC1 is for Mastercard whereas CVC2 is for Visa
CVC1 is used in card-not-present transaction and CVC2 is used in card-present transaction

2. ___ is an example of Unsystematic risk

New competitor
None of these
Stock market crash
Fluctuating interest rates

3. Risk associated with fluctuation of stock prices is

Liquidity risk
Interest rate risk
None of these
Equity risk

4. Banks which provide investment services along with loans and deposits related services are known as
Enterprise Banks
Investment Banks
Merchant Banks
Universal Banks

5. Risk is defined as the

Possibility of losing investments
Possibility of actual outcome different from expected outcome
Uncertainty involved in any occurrence
All the options

6. The overall spread of a bank’s outstanding accounts over the number or variety of debtors to whom the bank has lent
money is known as
Both the options
Transaction risk
Concentration risk
None of these

7. Point of interaction
SET
POE
SSL
ATM

8. Payments through credit cards are cleared and settled by

Acquirer
Issuer
Cardholder
Payment card association

9. Basel 3 requires Banks to hold

4% of tier 1 capital
5.5% of common equity
7% of tier 1 capital
 4.5% of common equity

10. Entry strategy plans, business alliances, cross-border investment, etc, are examples of
Project advisory
None
Business advisory
Restructuring advisory

11. Portfolio concentration risk is a type of

Credit risk
Liquidity risk
Operational risk
Market risk

12. A company which is earning in dollars but has got major expenditures in rupees (e.g. TCS) gets into a contract with another
company which is earning in rupees but has got expenditures in dollars (e.g. Indian Oil), to Exchange the cash flows for
coming one year at a Price fixed today. This is an example of
Forward
Option
Future
Swap

13. Technology failure and third party fraud are examples of

Operational risk
Credit risk
Market risk
Liquidity risk

14. Unsystematic risk is also known as

Company specific risk
Diversifiable risk
Both the options
Neither of them

15. A _____ enables a shareholder with a right to obtain regular dividends from a company
Preference share
Common share
Derivative
Debt

16. The primary role of merchant Bank is ____ and that of investment bank is ____
Equity investment, underwriting
Underwriting, equity investment
Trade finance, capital creation
Capital creation, trade finance

17. Which derivative product gives the holder the flexibility to either execute the contract or pay a margin and close the same
Swap
Forward
Option
Future

18. Dip in credit rating is a cause of

 Credit risk
Market risk
Operational risk
Liquidity risk

19. The ease with which the investment product can be converted to cash or cash equivalent is known as
Transferrability
Convertability
Maturity
Liquidity

20. What is SWIFT

None of the above
Society for Worldwide Interbank Financial Telecommunication
Society for Worldwide International Federal Telecommunication
Society for Worldwide Interbank Financial Telex

21. Difference between interest paid on deposit and interest received on loans refers to ____
Spread/margin
Profit
Cost of bank
None

22. Which of the following are considered as characteristics of a bank?

Handling transactions in monetary terms
Banks lends loan using fractional reserve system
Saving means like current saving, etc
All of these

23. Banks are classified based on ____

Authorization
Ownership
Functions and services
All of these

24. Which of the following does not come under retail banking services _____?
Lending loans to individuals
Credit card debit card services
Raising capital, merges and acquisition
All of these

25. Central bank of any country plays a major role in controlling interest rates and maintaining stability in the economy.
True
False

26. Which among below is a fund based loan?

Letter of credit
Bank guarantee
Bank assurance
Overdraft

27. Loan syndication is done mostly when

Fund requirements are huge
 Project is riskier
Project involves international transactions and beyond the reach of one bank
All given options

28. What is the flow of a typical loan process?

Application, processing, underwriting, servicing, closing
Application, processing, underwriting, closing, servicing
Application, underwriting, processing, closing, servicing
Application, servicing, processing, underwriting, closing

29. At which stage the details of loan applicant is verified?

Application
Processing
Underwriting
Servicing

30. Cash in advance is ____

Payment of total amount before receiving the goods
Payment or some percentage of total amounts before receiving goods
Payment after sale of goods
Payment after receiving the invoice

31. Which one among the following is not the role of Payment System?
Ensuring financial stability
Ensuring economic efficiency
Implementing fiscal policy
Implementation of monetary policy

32. Which bank is the Operator of the Payment Systems?

Commercial bank
Receiving bank
Paying bank
Central bank

33. SIPS stands for

Strategically Important Payment Systems
Systematically Important Payment Services
Systematically Integrated Payment Systems
Systematically Important Payment Systems

34. When payment gateway send transaction details to the acquiring bank for the purpose of processing is termed as
Authorising
Reporting
Clearing
All of the above

35. A firm is looking for an institution which can guarantee that the proposed initial public offering of the firm is a success.
Basically the firm is asking for which service
Capital creation
Capital insurance
Underwriting
Risk management
36. If an investment bank is using its own money to trade in stock market, then this is known as
Primary trading
Secondary trading
Tertiary trading
Propietary trading

37. Systematic risk is also known as

Non diversifiable risk
Economic wide risk
Both
Neither of them

38. T bills are an example of

Corporate equity instrument
Government debt instrument
Corporate debt instrument
Government equity instrument

39. Secured loan carries higher interest rate as compared to unsecured loan. True or False?
True
False

40. Which of the following are the tools/ instruments applied in Implementation of monetary policy?
Reserve Requirements
All of the options
Interest rates
Open markets operations