MCQs on Banking Affairs -9

1. Which of the following activity is undertaken by EXIM Bank?
(a) Export Credit
(b) Film Finance
(c) Financing under PMEGP
(d) SME and Agriculture Finance


2. Secondary market consists of
(a) all the stock exchanges (including Over the Counter Exchange of India and National Stock Exchange)
(b) Brokers, sub-brokers, share transfer agents
(c) Depositories/custodians, Depository Participants (Dps), financiers and investors
(d) all of the above



3. CASA is basically the combination of Current account and saving account deposits with a Bank. Why do the Banks put greater emphasis on mobilizing a high CASA ratio?
(a) In order to fulfill RBI stipulation for it
(b) It helps reduction in average cost of funds
(c) These are stable deposits
(d) These help Banks maintain a healthy asset-liability ratio



4. One of the State Government avails of a temporary financial assistance from Reserve Bank of India. This type of finance is called _______?
(a) Overdraft
(b) Temporary loan
(c) Short term finance
(d) Ways and Means advance



5. Except one of the following instruments others are issued at discount. Identify the exception _____?
(a) A Certificate of Deposit (CD)
(b) A Treasury Bill (T Bill)  
(c) A Commercial Paper (CP)
(d) A Fixed Deposit (FD)



6. Cash Reserve Ratio (CRR) is to be maintained on Net Demand and Time Liabilities (NDTL). SLR is thus required to be maintained on ________?
(a) Total Demand and Time Liabilities
(b) Net Demand and Time Liabilities
(c) Total Demand and Time Assets
(d) Net Demand and Time Asset



7. “CAMEL model” is used by _______?
(a) Bankers to evaluated a credit proposal
(b) Bankers to manage their risks
(c) RBI inspectors to evaluate banks functions
(d) Merchant Bankers to evaluate portfolio investment



8. For repayment of loan availed from Banks, NBFC etc, we come across a term known as EMI What does it stand for?  
(a) Equated Money Index 
(b) Easy Money Installment 
(c) Equated Monthly Installment 
(d) Equal Monthly Installment 



9. Whose signature is found on a 1 rupee currency note in India?
(a) President of India 
(b) Governor, RBI 
(c) Finance Minister 
(d) Secretary, Ministry of Finance



10. Many times we read the term ‘ECB’ in newspapers. What is the full form of ‘ECB’ ?  
(a) Essential Commercial Banking 
(b) European Credit Borrowing 
(c) External Credit For Business 
(d) External Commercial Borrowing 



11. The term 'AML' used in Banking/Finance sector stands for?  
(a) Asset Management Link
(b) Anti Money Liability y 
(c) Anti Money Laundering 
(d) Asset Manpower Liability 



12.In the opening of Savings Account (few other accounts also) bank ask to write Nominee name. Who shall be nominee?
(a) Any person
(b) Known person only
(c) Close blood relation only
(d) Account holder in that bank only




13.Consider the following statements with respect to IFSC code used in Banking System:
A) IFSC Stands for Indian Financial System Code 
B) It is an 11­digit alphanumeric Unique Code 
C) IFSC is used be the NEFT system to route the message to the destination banks/branches.
(a) Only A & B
(b) Only B
(c) Only B and C
(d) All A, B and C




14. The primary relationship between the banker and the customer is that of:
(a) Trustee and beneficiary
(b) Debtor and Creditor
(c) Principal and agent
(d) Lesser and lessee



15. Which of the following is true about "White Card"?
(a) It is related to companies producing milk products
(b) It does not carry on its face, the brand of the issuer
(c) It is meant to covert blank money into the economy
(d) It is a card that provides white money

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