MCQs on banking Affairs -12

1.To curb inflation one of the methods is
(a) Bank rate must be made equal to long term lending rates
(b) Bank rate must be kept even
(c) Bank rate must be lowered
(d) Bank rate must be raised



2. IMF was established to meet which of the following objectives ?
A) Promoting International Monetary Cooperation
B) Expanding International Trade
C) Lessening the disequilibrium in balance of trade
D) Avoiding competitive exchange depreciation

(a) A, B and C only
(b) A, C and D only
(c) B and D only
(d) All A, B, C and D



3. An instrument of qualitative credit control in India is _________________
(a) Open Market Operation
(b) Credit Rationing
(c) Charge in reserve ratio
(d) Bank rate policy



4. Which of the following statements about new private sector banks are correct ?
(a) The stipulation in regard to priority sector lending norms and targets are to be observed by these banks. however, RBI may consider modification in these norms for an initial period
(b) They would be required to open branches at rural / semi-urban centers
(c) Only (a)
(d) Both (a) and (b)


5. Govt. of India has created a special India Micro finance Equity Fund of Rs. 100 Crores. The fund is maintained by 
(a) RBI

(b) SIDBI
(c) NABARD
(d) SEBI


6. The formal or institutional credit delivery system in rural India comprises which of the following ?
A) Cooperative Credit Institutions
B) Commercial Banks
C) Regional Rural Banks
D) Self-Help Groups

(a) Only A and B
(b) Only C and D
(c) Only A, B and C
(d) All A, B, C and D



7. Money Supply in India can be increased if __________
A) RBI puts more paper money for circulation
B) The commercial banks expand their credit operations
C) The central Govt. gives more grants to the states
D) The Govt. of India borrows from the RBI
(a) A, B and C
(b) B, C and D
(c) A, C and D
(d) A, B and D



8. If RBI adopts an expansionist open market operations policy, this means that it will ___________
(a) Offer commercial banks more credit in open market
(b) Sell securities in teh open market
(c) Openly announce to the market that it intends to expand credit
(d) buy securities from non-government holders



9. The main aim of devaluation is to ___________
(a) Encourage Exports
(b) Encourage Imports
(d) Discourage Exports
(c) None of the above



10. In banking world when a loan given by a bank to an individual or organization is not returned by the borrower wishingly or otherwise, it is known as _____________
(a) Standard Asset
(b) Non-Performing Asset
(c) Over Draft
(d) None of the above


11. Expand the term ALM as used in Banking / Finance sector ?
(a) Asset Liability Mismatch
(b) Asset Liability Maturity
(c) Asset Liability Management
(d) Asset Liability Manpower



12. The first Credit Card was issued in India by VISA in the year ?
(a) 1994
(b) 1991
(c) 2001
(d) 1981


13. AML stands for
(a) After Money Liability
(b) Anti Money Laundering
(c) Anti Management Liability
(d) None of the above


14.What is the relationship between a bank and customer when a locker is rented out by a bank to a person : 
(a) Bailor and Bailee      
(b) Bailee and Bailor              
(c) Principal and Agent
(d) Lessee and Lessor


15.Non-bank entities must have net worth of at least how much to be eligible for operating white label ATMs : 
(a) Rs. 100 cr.     
(b) Rs. 200 cr.  
(c) Rs. 300 cr.
(d) Rs. 400 cr.  


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