Deck 5: Banking and Financial Management

Question 1

Net interest income is

A)interest earned on advances
B)interest earned on investment
C)total interest earn
D)on advances and investment

Answer 1

on advances and investment

Question 2

The ……….is an important function of a bank and this function distinguishes banks from the non banking institution.

A)accepting deposit
B)lending money
C)creation of credit
D)agency service

Answer 2

creation of credit

Question 3

………..function are the core activities of banking.

A)agency and general utility
B)borrowing and lending
C)accepting deposit a
D)borrow money

Answer 3

borrowing and lending

Question 4

Banks lend to special purpose vehicles (SPVs)in the private sector registered under………… for directly undertaking infrastructure projects.

A)reserve bank of india
B)state bank of india
C)local courts
D)companies act.

Question 5

Banks categorised housing loan ,education loan etc.as………

A)wholesale loan
B)retail loan
C)risk loan
D)personal loan

Question 6

Banks extend need based working capital facilities as well as term loans to all NBFCs registered with………

A)companies act.
B)state bank of india
C)commercial bank
D)reserve bank of india

Question 7

Investment of banks in Govt.securities and other approved securities is categorised as ……

A)lending
B)slr-investment
C)non-slr investment
D)anbc

Question 8

Interest rate risk is a type of

A)credit risk
B)market risk
C)operational risk.
D)all of the above

Question 9

Which of the following is not a motive for the companies to hold cash

A)transactional motive
B)precautionary motive
C)lack of proper synchronization between cash inflows a
D)outflows

Question 10

VaR means

A)value of business at risk
B)value at risk
C)volume on risk
D)value as risk.

Question 11

In an inflationary trend ,the pricing of the bank products are

A)decreasing trend
B)constant
C)increasing tre
D)no relevance.

Question 12

…........is a place where inter bank claims arising on account of cheques received for collection by each bank drawn against other banks are settled.

A)investment house
B)issuehouse
C)bankers clearing house
D)none of these

Question 13

The primery function of central bank is to………….of the country.

A)control the system
B)regulate the monetary system
C)plan the monetary system
D)none of these

Question 14

Every central bank has the monopoly right of……….

A)moral suasion
B)note issue
C)direct action
D)credit regulation

Question 15

Open market operation is another important…………… wepon of credit control.?

A)qualitative
B)normal
C)quantitative
D)none of the above

Question 16

……………… is a method of credit control adopted by the modern central banks?

A)consumer credit
B)margin requirements
C)variable reserve ratio.
D)rationing of credit,

Question 17

The Govt.of India set up the ……….committee(1991) to examine all aspects relating to structure ,organisation and the functioning of the Indian banking system.

A)narasimham
B)malhotra
C)vadia
D)smith

Question 18

How many banks were in second phase of nationalisation?

A)4
B)5
C)6
D)7

Question 19

……….is automation of banks across multiple -delivery channels.

A)anbc
B)obe
C)naba
D)cbs

Question 20

……….was the first public sector bank to tap the equity market in December 1993

A)sbt
B)pnb
C)sbi
D)boi

Question 21

Large value payment system consist of

A)ecs
B)rtgs
C)neft
D)obe

Question 22

….......may be defined as an exposure to a transaction with loss ,which occurs with some probability and which can be expected, measured and minimised.

A)profit
B)loss
C)risk
D)opportunity

Question 23

What is CRR?

A)cash reserve ratio
B)current ratio rate
C)review report
D)credit rating record

Question 24

…...........banks are those banks which are incorporated outside India and their head office are also situated outside India.

A)foreign exchange bank
B)schedule bank
C)non-schedul
D)bank

Question 25

Banks have adopted asset-liability management and stress testing as a tool of ……….

A)profit management
B)risk management
C)loss management
D)opportunity management