Deck 12: Various Questions on Banking and Reserve Bank of India

Question 1

Which of the following are the special relationship of banker and customer:

A)Banker?s obligation to honour cheques
B)Banker lien
C)Bankers duty to maintain secrecy of customer?s accounts
D)All of these

Answer 1

All of these

Question 2

______________ is the right of a person to retain the property of another person in his possession untill the debt from that owner of that property is repaid

A)Lien
B)Retainment
C)Retrenchment
D)Libel

Answer 2

Lien

Question 3

The right of set-off customers account can be exercised only by a

A)Creditors
B)Debtors
C)Banker
D)Customer

Answer 3

Creditors

Question 4

The Governor of the Reserve Bank of India currently is:

A)Raghuram G.Rajan
B)Urjit Patel
C)Shaktikanta Das
D)NirmalaSitharaman

Question 5

The main objective of the Reserve Bank of India is:

A)accept deposits from the public
B)give loans and advances
C)maintain price stability
D)provide remittance facilities

Question 6

Two types of Commercial banks have been stipulated by Section_______ of the Reserve Bank of India Act, 1934:

A)42(6)(b)
B)24(6)(b)
C)42(6)(a)
D)24 (6)(a)

Question 7

Quantitative measure for credit control by the RBI includes:

A)Discriminatory Interest Rate
B)Ceiling on Credit
C)Cash Reserve Ratio
D)Directives

Question 8

There are three parties to a bank draft:

A)The drawer bank branch, The drawee bank branch, The payee
B)The drawee bank branch, the payee, the purchaser of the draft
C)The payee, the purchaser of the draft, the drawer bank branch
D)The drawer bank branch, the drawee bank branch, the purchaser of the draft

Question 9

The legal obligation to honour cheques is subject to:

A)The cheque being post-dated
B)The cheque being drawn on another bank
C)The cheque being drawn by the depositor
D)The cheque being drawn on the account where there is insufficient balance

Question 10

When the cash reserve ratio (CRR) is increased by the RBI, it will:

A)Increase the supply of money in the economy
B)Decrease the supply of money in the economy
C)No impact on the supply of money in the economy
D)Initially increase the supply but later on decrease automatically.

Question 11

Agency services rendered by a bank to its customers as their agent include:

A)Receipt of deposits
B)Act as executors of wills
C)Issue letters of credit
D)Purchase foreign exchange

Question 12

Currency notes of Rupee 1 and its subsidiary coins are issued by the

A)RBI
B)SBI
C)Ministry of Finance, Government of India
D)Securities & Exchange Board of India.

Question 13

14th Major commercial banks were nationalized in 19th July

A)1959
B)1969
C)1979
D)1989

Question 14

_________is an instrument which is used for transfer of funds

A)Cheque book
B)Demand draft
C)Pass book
D)None

Question 15

___________are the banks whose main objectives is to provide financial assistance to economically weaker sections of the society.

A)Co-operative B
B)Commercial B
C)Industrial B
D)Development B

Question 16

The RBI commenced its operation from 1st April

A)1955
B)1925
C)1935
D)1945

Question 17

Which bank has given the instructions to the commercial banks regarding the immediate credit of outstation cheque?

A)RBI
B)Central Bank
C)World Bank
D)All of the above

Question 18

Payment of cheque can be stopped by

A)Beneficiary
B)Nominee
C)Drawer of cheque
D)All of the above

Question 19

Bank draft is issued by

A)Private Sector Bs
B)Regional Rural Bs
C)Public sector Bs
D)All of the above

Question 20

A Central Bank is the sole authority for

A)Printing and Issuing currency note
B)Lending to public
C)Accepting deposits from customer
D)Issuing cheques

Question 21

The head of the Reserve Bank of India is called

A)Chairman
B)President
C)Governor
D)Councillor

Question 22

One of the main aim of a Central Bank is to control inflation, what does „inflation? mean?

A)Saving income
B)Increase export
C)Maintain foreign currency
D)Rising Price

Question 23

What is bank rate?

A)Rate at which a Central Bank lends money to Central Government
B)Rate at which a Central Bank lends money to commercial banks
C)Rate at which a Central Bank lends money to State Government
D)Rate of Interest at which a Central Bank accepts deposits from Commercial Banks

Question 24

Commercial Bank as the name suggest is a bank functioning for

A)Social welfare
B)Public interest
C)Profit motive
D)Growth of industry

Question 25

Commercial Banks make money available to public by

A)A.T.M
B)Honouring cheques
C)Issuing money on demand from Savings A/c
D)giving out loan