BALAKRISHNAN: PG TRB COMMERCE BANKING

PG TRB COMMERCE

BANKING

1. Demand deposit also known as ___________________.

a) Current account b) Fixed deposit

c) Capital account d) Recurring deposit

ANS:A

2. Bank places certain restriction on withdrawal for _______________ deposit.

a) Savings deposit b) Demand deposit

c) Current account d) Fixed deposit

ANS:A

3. Mixed banking is now referred to as ______________ .

a) Commercial banking b) Universal banking

b) Merchant banking d) Development banking

ANS:B

4. ______________ is the contribution made by the shareholders of the bank.

a) Loans & advances b) cash in hand

c) Bills discounted d) Share capital

ANS:D

5. __________ was originally the home of commercial banking.

a) U.S.A b) England

c) Britain d) Germany

ANS:D

6. ____________ was initially the home of industrial or investment banking.

a) Italy b) England

c) Genev

a d) Germany

ANS:D

7. The trend in India is towards ___________.

a) Mixed banking b) Development banking

c) Commercial banking d) Industrial banking

ANS:A

8. ___________ to ___________ percent of total deposit is kept as cash reserve.

a) 5 to 10 b) 11 to 15

c) 8 to 11 d) 9 To 11

ANS:D

9. Commercial banks to expand deposit through expanding their loans and advances is known as

___________.

a) Credit creation b) Trade discount

c) Deposit d) Bank advances

ANS:A

10. Rediscounting and giving advance the central bank changes interest at a rate which is known as

__________

a) CRR b) SLR

c) Bank Rate d) Credit

ANS:C

11. The nationalization of 14 commercial banks was on?

a) 19 July, 1969 b) 15 Aug, 1972

c) 15April, 1980 d) 19 Jan, 1959

ANS:A

12. The State Bank of India was established under the State Bank of India Act on?

a) 1935 b) 1948

c) 1955 d) 1952

ANS:C

13. RBI introduced 14-day intermediate Treasury Bills and 14-day Treasury bills on?

a) 1994 b) 1997

c) 1984 d) 1972

ANS:B

14 RBI introduced a bill Rediscounting Scheme in?

a) 1997 b) 1956

c) 1970 d) 1984

ANS:C

15. RBI introduced the system of repurchase of dated Government securities through addition at fixed cutoff

rate of interest is?

a) Reverse Repos b) CRR

c) LAF d) SLR

ANS:A

16. DIC stands for?

a)Deposit Investment Corporation

b)Deposit Insurance Corporation

c) Deposit Industrial Corporation

d)Development Corporation of India

ANS:C

17. ______ Commission recommended the formation of a Central bank in1926.

a)Narasimham committee

b)Bretton Wood Committee

c)Hilton-Young Committee

c)Banking Enquiry Committee

ANS:C

18. System of banking is guided by the Islamic Law called?

a)Islamic Guide b)Islamic Banking

c)Banking Regulation Act d) Shariat

ANS:D

19. Overdraft is a credit facility granted by Commercial banks to ________ holders.

a)Current Account c)Cash Account

c)Capital Amount d)Reserve Fund

ANS:A

20. Money at call and short notice is also known as?

a)Capital Market b)Inter bank call money market

c)Financial system d)Financial Call money

ANS:B

21. Creation of derivative deposit out of the money from primary deposit is called?

a)Cash Credit b)Lending Money

c)Credit Creation c)Loan and advances

ANS:C

22. The process of credit creation by the banking system as a whole is termed as ?

a)Multiple credit creation

b)Primary deposit

c)Credit creation

d)Single bank credit system

ANS:A

23. The regulator of Indian Money market is?

a)SBI b)Commercial bank

c)RBI d)SEBI

ANS:C

24. The regulator of Indian Capital Market is?

a)SEBI b)SBI

c)RBI d)Commercial Bank

ANS:A

25. Bridge Loan is also known as?

a) Swing Loan b)Term Loan

c)Demand loan d)Farm Loan

ANS:A

26. 182-day Treasury bill was introduced in Indian Money Market in?

a)19992 b)1972

c)1987 d)1952

ANS:C

27 __________ is a loan available to senior citizen.

a)Reverse mortgage b)Bridge loan

c) Personal d)Farm loan

ANS:A

28. CIBIL stands for?

a)Credit Information Bureau Ltd

b)Credit Information Banking India Ltd

c)Credit Investment Bureau India Ltd

d)Credit Information Bureau India Ltd

ANS:D

29. The value of money received today will be more than a rupee tomorrow is?

a)Time Value of money b)Present value of money

c)Future value of money d)Compound value of money

ANS:A

30. The interest computed on the principal for the entire period of borrowings?

a)Compound Interest b)Simple Interest

c)Flat Rate Interest d)Floating Rate Interest

ANS:B

31. The periodical interval at which interest is added is called?

a)Floating period b)Compounding Period

c)Fixed period d)Periodic payment

ANS:B

32. Rate of interest fluctuates according to market lending rate in?

a)Simple interest b)Flat rate interest

b)Compound interest d)Floating rate

ANS:D

33. ________Act offer incentive to attract people to invest in housing property.

a)Sales tax b)Income Tax Act 1961

c)Banking regulations Act d)Co-operative Societies Act

ANS:B

34. Loan designed for people who wish to sell the existing home and purchase and purchase another?

a)Bridge loan b)Housing loan

c)Demand Loan d)Personal loan

ANS:A

35. The first joint Stock Bank in India?

a)IDBI b)ICICI

c)Imperial Bank d)Allahabad Bank

ANS:C

36. The loan facility where neither ownership nor possession of asset is transferred as security to the bank

is called?

a)Pledge b)Mortgage

c)Hypothecation d)Property security

ANS:C

37. Repayment of an educational loan is deductable u/s_______ of the Income tax Act

a)70 b)80

c)60 d)90

ANS:B

38. BPLR means?

a)Bench Mark Prime lending Rate

b)Bench Mark Primary money lending rate

c)Bench Mark Primary Loan Repayment

d)Bank Primary Lending Rate

ANS:A

39. Compound interest is calculated by applying?

a)CI=P(I+R)n-P b)CI=P(I+R)n

c)CI=PNR d)CI=P(I+R)(I+R)n

ANS:A

40. If interest is changed on full amount of loan(principal) throughout the entire tenure of the loan is?

a)Float rate b)Fixed rate

c)Flat rate d)Diminishing rate

ANS:C

41. The borrower repays his loan by way of fixed monthly installments to the bank is called?

a)Equal month installment

b)Equally managed

c)Equated monthly installment

d)Equated money installment

ANS:D

42. RBI introduced _________ scheme in 1969?

a)SAA b)village adaptation

c)Lead bank d)DIR

ANS:C

43. ________act as a Consortium leader of the banking institutions in the district?

a)Lead Bank b)Social banking

c)Core banking d)District co-operative bank

ANS:A

44. The service area approach was introduced in?

a)June 1989 b)January 1989

c)April 1989 c)August 1989

ANS:C

45. In SAA, all Rural and Semi-Urban branches of all scheduled banks including RRBs were allocated

specific villages called?

a)Service approach b)development villages

c)Village area d)Service area

ANS:D

46. _________will give financial assistance at concessional rate of interest to income groups for

productive purposes

a)DIR b)Priority sector

c)Village adoption scheme b)SAA

ANS:A

47. Who introduced micro credit system in social banking segment?

a)Geoffery Growther of Prof.D.R Gadgil b) Nobel laureate & Mohammed Yunus

c)N.D Thiwari d)Banking Regulation Act 1949

ANS:B

48. _______is a registered or unregistered group of micro entrepreneur having homogenous social and

economic backgrounds.

a)Village adoption b)Microfinance

c)Priority sector d)Self help group

ANS:D

49. “Buy now and Pay later” is the motto of a ______.

a)ATM b)Debit card

c) credit card d)MICR

ANS:C

50. Credit card allow one to buy goods now and pay later called?

a)Buying on credit b)Buying on debit

c)Cash credit d)Cash Payment

ANS:B

51 TPIN Stands for

(a) Timing of the preparation of interest rate

(b) Techniques of personal index number

(d) Telephone personal identification number

ANS:D

52 E- Purse is a prepaid card and is known as ________________

(a) Stored value card (b) Electronic Card

ANS:A

53 Card issuers, consumers, merchants and payment sever/Service producer are four parties in _________

(a) Cheque truncation (b) e -purse

ANS:B

54 ________ means the transfer of money from one bank account to another electronically.

(a) EFT (b) SWIFT

ANS:A

55 Bank all over the world are enter - linked through satellite provided by __________

(a) PSAM (b) SWIFT

ANS:B

56 EFT is also known as

(a) Easy Fund Transfer (b) Maintenance Fund Transfer

ANS:D

57 FIRPS stands for

(a) Foreign inward Remittance Payment Scheme

(b) Foreign Investment Remittance Payment Scheme

(d) Foreign Investment Remittance Payment System

ANS:B

58 ____________ is a system that facilitates individuals, firms and corporate to electronically transfer funds

from any bank branch to any individual having an account with any other bank branch in the country.

(a) NEFT (b) EFT

ANS:A

59 In case of non-credit or delay in credit to the beneficiary account, the NEFT of the respective bank can be

contacted to __________

(a) ECS (b) KYC

ANS:C

60 ___________ is an alpha-numeric code that uniquely identifies a bank branch participating NEFT System.

(a) IFS (b) IFSC

ANS:B

61 IFSC is an _______digit code

(a) 8 (b) 14

ANS:D

62 IFTP means _________

(a) Inter-bank finance settlement process (b) Inter-bank fund transfer process

ANS:B

63 In RTGS Minimum amount to be remitted is ___________

(a) Rs.1,00,000 (b) Rs.2,00,000

ANS:B

64 In India, RTGS has been implemented on ___________

(a) 26 March 2004 (b) 26 March 1998

ANS:A

65 _________ is a funds transfer mechanism where transfer of money takes place from one bank account to

another bank account is real time.

(a) NEFT (b) EFT

(c) ECS (d) RTGS

ANS:D

66 BACS means ________

(a) Bankers Automated clearing services (b) Bankers Automatic clearing system

ANS:A

67 _______ Credit is used for fund transfer to large number of beneficiaries by a single debit to an account of

bank.

(a) EFT (b) IFSC

ANS:C

68 ECS payment ______ code is essential

(a) MICR (b) RTGS

ANS:A

69 MICR is a numeric code that uniquely identifies a bank-branch participating in the ________ scheme.

(a) IFSC Credit Scheme (b) EFT Credit Scheme

ANS:D

70 MICR is a ________ digit code.

(a) 9 (b) 11

ANS:A

71 CTS was introduced RBI in _________

(a) February 1995 (b) January 2006

ANS:D

72 ________ conversion of physical cheque into electronic form for transmission to the paying bank.

(a) CTS (b) ECS

ANS:A

73 CORE stands for ________

(a) Central operations of exchange (b) Centralized Online Real time exchange

ANS:B

74 Banking services that increasingly rest on technology and communication systems is popularly known as

___________

(a) Hi-tech banking (b) Internet Banking

ANS:A

75 _________ is also called virtual banking or anywhere banking.

(a) Hi-tech banking (b) Off shore banking

ANS:C

76 _________ banking implies co-operation among group of banks for various large scale banking operations

and to enjoy the economics of scale.

(a) Multiple banking (b) Consortium banking

ANS:B

77 In _______ banking, different banks provide different banking services to a single borrower without

having a common arrangement or understanding between the lenders.

(a) Mixed banking (b) Group banking

ANS:C

78 _______ banking refers to the establishment of banking unite which deal only with foreign currencydenominated

assets & liabilities.

(a) Unit banking (b) Off-shore banking

ANS:B

79 Off-shore banking units by Indian Banks in _________

(a) Genevia (b) U..S

ANS:D

80 The banking activities performed by foreign banks in a foreign country are known as _________

(a) Foreign bank (b) Hi-tech banking

ANS:C

81 Narasimham Committee - 1 report known as __________

(a) Banking sector reforms (b) Financial sector reforms

ANS:B

82 Narasimham Committee - II report known as ________

(a) Financial Sector reforms (b) Banking Sector reforms

ANS:B

83 An individual or organisation which acted as a money changer and exchanged one currency for another’s

is ____________

(a) Foreign bank (b) Money lender

ANS:C

84 ICICI Bank is the first major ________ in the country

(a) Universal bank (b) Commercial bank

ANS:A

85 ___________ & ________ are owners funds of the bank, as they belong to the shareholders.

(a) Cash is hand & Cash at bank (b) Assets & liabilities

ANS:C

86 The banking system which combines commercial banking with investment banking is known as

______________

(a) Multiple banking (b) Group banking

ANS:C

87 The German banks combined development banking with commercial banking and has came to be what is

known as __________

(a) Mixed banking (b) Group banking

ANS:A

88 The first asset on the portfolio of a commercial banks asset is __________

(a) Cash in hand (b) Share capital

ANS:A

89 ___________ called primary reserve of bank

(a) Retained earnings (b) Goodwill

ANS:C

90 ________ is a highly liquid asset

(a) Commercial paper (b) Money at call of short notice

ANS:B

91 The bill of exchange are regarded as _________

(a) Guilt-edged paper (b) Commercial paper

ANS:A

92 Deposit are secondary or derived form the primary deposits is known as _______

(a) Credit creation (b) Multiple credit creation

ANS:D

93 ________ can be defined as the expansion of bank deposits through the process of more loans &

advances and investment.

(a) Primary Deposit (b) Credit creation

ANS:B

94 The Government delegates the right of ________ to the central bank.

(a) Printing currency note (b) Coins

ANS:A

95 The deposit balances kept by all commercial banks with the central bank are known as ____________

(a) Earning per share (b) Reserve

ANS:C

96 ____________acts as an agent of RBI

(a) SBI (b) Scheduled Bank

ANS:A

97 ___________ lender of last resort

(a) Central bank (b) Scheduled bank

ANS:A

98 DFHI stands for _____________

(a) Discount & Finance Housing investment Ltd. (b) Direct Finance House of India Ltd.

ANS:C

99 DFHI was set up by RBI in ____________

(a) 1988 (b) 1962

ANS:A

100 The first Indian Commercial bank to set up a merchant banking division in 1972.

(a) SBT (b) SBI

ANS:B

BALAKRISHNAN

Monday, 29 May 2017

PG TRB COMMERCE BANKING

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