Question 1

What action is taken if one of the customers tenders forged note?
A)he is sent to prison
B)note is returned with remark, forged note
C)note is impound
D)note is torn

Accepted Answer

When a forged note is identified, the standard procedure is to impound the note to prevent it from re-entering circulation and to initiate an investigation. Returning it with a remark, sending the person to prison directly, or tearing the note are not standard initial actions.

Question 2

Head quarter of ADB is situated at
A)new york
B)chicago
C)manila
D)tokyo

Accepted Answer

The headquarters of the Asian Development Bank (ADB) is located in Manila, Philippines.

Question 3

Indian Companies have been allowed to invest upto US$ ---abroad
A)10 million
B)15 million
C)5 million
D)20 million

Accepted Answer

Indian companies have been allowed to invest up to US$10 million abroad under the Foreign Exchange Management Act (FEMA).

Question 4

As per Basel-I ………..capital can absorb losses without a bank being required to cease trading.
A)tier-i
B)tier-ii
C)tier-iii
D)none of these

Accepted Answer

Tier-I capital, also known as core capital, consists of the primary forms of bank capital, including equity capital and disclosed reserves. It is the key measure of a bank's financial strength from a regulator's point of view because it can absorb losses without forcing the bank to cease its trading.

Question 5

Which of the following definition is most correct.UCPDC 500 is
A)set of rules applicable to cc transactions
B)set of rules having 500 article
C)set of rules fram
D)by icc governing lc business globally

Accepted Answer

The answer of Which of the following definition is most...

Question 6

If market quotes USD/INR as 43.61/63 ,at what rate can you buy USD at the given quote.
A)43.61
B)43.62
C)43.63
D)none of the above

Accepted Answer

In a currency pair quote like USD/INR 43.61/63, the first number (43.61) is the bid price, which is the rate at which you can sell USD, and the second number (43.63) is the ask price, which is the rate at which you can buy USD. Therefore, you can buy USD at 43.63.

Question 7

A new category of scheduled banks came into existence in 1975 as RRBs under the ………
A)regional rural banks ordinance,1975.
B)regional reconstruction banks ordinance,1975.
C)register
D)rural banks ordinance,1975.

Accepted Answer

The correct answer is A) regional rural banks ordinance,1975. Regional Rural Banks (RRBs) were established under the Regional Rural Banks Ordinance in 1975, which was later replaced by the Regional Rural Banks Act, 1976.

Question 8

The three banks recently have entered in a Mega ATM sharing pact.They are
A)sbi, icici, & b
B)sbi, icici, hd
C)icici, andhra bank, hdfc
D)andhra bank, canara bank, sbi

Accepted Answer

The answer of The three banks recently have entered in...

Question 9

Devaluation of currency stands for
A)reducing the value of internal currency in terms of foreign currency
B)increasing the value of indian currency in terms of foreign currency
C)keeping the value of internal currency constant in terms of foreign currency
D)none of these

Accepted Answer

Devaluation of currency means officially lowering the value of a country's currency within a fixed exchange rate system, with respect to foreign currencies. This makes the domestic currency less valuable compared to foreign currencies.

Question 10

Pari Passu charge refers to a charge
A)ranking in priority, regardless of quantum of advances
B)merely notional in nature
C)ranking equally in priority in proportion to the lender's share of advance
D)none of these

Accepted Answer

Pari Passu charge means that the charge or security interest ranks equally without preference or priority among other securities, typically in proportion to the lender's share of the advance. It ensures that in the event of liquidation, creditors are paid out proportionally to their share of the total debt.

Question 11

What are the four categories as per Kapur Committee recommendations for loan applications under SSI segment
A)upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacs
B)upto 10 lacs, upto 25 lacs, upto 50 lacs and above 50 lacs
C)upto 2 lacs, upto 1 crores, upto 2 crores, a
D)above 2 crores

Accepted Answer

The Kapur Committee recommended categorizing loan applications under the Small Scale Industries (SSI) segment into four categories based on the loan amount: upto 2 lacs, upto 15 lacs, upto 25 lacs, and above 25 lacs.

Question 12

The area of operation of …………banks are maximum of three geographically neighbouring districts and they are allowed to open branches only in their area of operation.
A)local area banks
B)co-operative banks
C)rrb
D)foreign exchange banks

Accepted Answer

Local Area Banks (LABs) are small-sized banks that operate in limited areas, typically a maximum of three geographically contiguous districts. They aim to provide banking services to the local population, including small businesses, farmers, and other unbanked groups, within their specified area of operation.

Question 13

The banker advances money against immovable property only when the property is ……….to the banker.
A)loan
B)mortgaged
C)pledg
D)hypothicated

Accepted Answer

Mortgaged property means the borrower has given the legal right or interest in the property to the banker as security for the loan. This is the common practice for securing loans against immovable property.

Question 14

EXIM Bank was set up on
A)january1, 1982
B)january 26,1989
C)march 15,1981
D)march15,1982

Accepted Answer

EXIM Bank was established on January 1, 1982, to finance, facilitate, and promote India's international trade.

Question 15

Which commission recommented the foundation of RBI
A)sarkaria commission
B)hilton young commission
C)narasimha commission
D)none of these

Accepted Answer

The Hilton Young Commission recommended the foundation of the Reserve Bank of India (RBI) in 1926.

Question 16

At what frequency can Banks pay interest on Saving Bank Account asper RBI guidelines
A)monthly
B)quarterly
C)half yearly
D)yearly

Accepted Answer

The answer of At what frequency can Banks pay interest...

Question 17

The VSAT communication network for banks and financial institutionslaunched by RBI is known as
A)swift
B)sbi net
C)bank net
D)infinet

Accepted Answer

Infinet is the VSAT communication network launched by the Reserve Bank of India (RBI) specifically for banks and financial institutions.

Question 18

…......is a transaction where by money is borrowed by the debtor on the security of the movable property.
A)hypothication
B)mortage
C)pledge
D)charge

Accepted Answer

The answer of …......is a transaction where by money is...

Question 19

Which bank has become the first foreign bank to open a branch inIsrael's diamond exchange:
A)american express bank
B)citibank
C)standa
D)chartered bank

Accepted Answer

Standard Chartered Bank became the first foreign bank to open a branch in Israel's diamond exchange.

Question 20

RBI controls money market qualitatively through
A)open market operation
B)selective credit control
C)bank rate
D)none of the above.

Accepted Answer

Selective credit control is a qualitative method used by the RBI to control the amount of credit that can be advanced by banks to certain sectors or industries. This method allows the RBI to regulate the flow of credit based on the need and situation of the economy, without altering the overall money supply directly.

Quiz 8: Banking Systems and Institutions

What action is taken if one of the customers tenders forged note?

Head quarter of ADB is situated at

Indian Companies have been allowed to invest upto US$ ---abroad

As per Basel-I ………..capital can absorb losses without a bank being required to cease trading.

Which of the following definition is most correct.UCPDC 500 is

If market quotes USD/INR as 43.61/63 ,at what rate can you buy USD at the given quote.

A new category of scheduled banks came into existence in 1975 as RRBs under the ………

The three banks recently have entered in a Mega ATM sharing pact.They are

Devaluation of currency stands for

Pari Passu charge refers to a charge

What are the four categories as per Kapur Committee recommendations for loan applications under SSI segment

The area of operation of …………banks are maximum of three geographically neighbouring districts and they are allowed to open branches only in their area of operation.

The banker advances money against immovable property only when the property is ……….to the banker.

EXIM Bank was set up on

Which commission recommented the foundation of RBI

At what frequency can Banks pay interest on Saving Bank Account asper RBI guidelines

The VSAT communication network for banks and financial institutionslaunched by RBI is known as

…......is a transaction where by money is borrowed by the debtor on the security of the movable property.

Which bank has become the first foreign bank to open a branch inIsrael's diamond exchange:

RBI controls money market qualitatively through