OBJECTIVE QUESTIONS ON BANKING INDUSTRY - 7 1. As per newspaper reports Australia and Canada have become new exporters of pulses to India. Uptill now which of the following countries was the single biggest exporter of pulses to India ? (1) Myanmar (2) Pakistan (3) Nepal (4) Bangladesh (5) Britain Answer:(1) 2. Several countries in Europe abandoned their currencies and adopted a common currency in the year 2001. That currency is known as __ (1) Europa (2) Gibralter Pound (3) Dollar (4) Pound Sterling (5) Euro Answer:(5) 3. Government may reduce its budgetary deficit by various measures. Which of the following is NOT one such measure ? (1) Market borrowing (2) Deficit financing (3) Foreign grants (4) Increasing taxes (5) Reducing taxes and increasing subsidies Answer:(5) 4. ‘Commercial papers’ are issued by __ (1) a company to a bank (2) Banks to Companies (3) Banks to Banks (4) Company to its suppliers (5) None Answer:(3) 5. Which of the following organizations maintains buffer stock of the food grain in India ? (1) Commission for Agricultural Costs and Prices (2) Central Warehousing Corporation (3) Food Corporation of India (4) Mandi Samiti of each State (5) None Answer:(3) 6. ‘MAT’ provision in Income Tax stands for __ (1) Medium Alternate Tax (2) Maximum Alternate Tax (3) Minimum Alternate Tax (4) Mild Alternate Tax (5) None Answer:(3) 7. Maximum FDI in Pvt sector Bank in India is allowed up to__ (1) 26% (2) 49% (3) 50% (4) 74% (5) None Answer:(2) 8. China’s CNOOC, on July 20, 2011, signed an agreement to buy OPTI ___ Inc. through its wholly-owned subsidiary, Luxembourg S.a.r.l, for about $2.1 billion. (1) Mexico (2) Canada (3) Australia (4) Belgium (5) None Answer:(2) 9. In the world of commodity exchanges – the concept of “A standard contract to buy or sell a specified commodity at a certain data in future and at a market driven price” – is known as __ (1) Future contract (2) Forward contract (3) Market contract (4) Standard contract (5) None Answer:(1) 10. Lending to self Help Groups (SHGs) by Banks is known as __ (1) Non priority sector (2) Priority sector (3) Commercial Sector (4) Corporate sector (5) None Answer:(1) 11. According to Ministry of Consumer Affairs, which one of the following products had contributed maximum to take the inflation at highest level ? (1) Vegetables (2) Jowar (3) Atta (4) Coconut oil (5) Milk Answer:(1) 12. In which one of the following States, ONGC has set up a 102 MW capacity wind power project ? (1) Gujarat (2) Rajasthan (3) West Bengal (4) Orissa (5) Andhra Pradesh Answer:(2) 13. Through which one of the following source(s), Indian companies are allowed to access funds from abroad ? (A) External Commercial Borrowings (ECB) only (B) Foreign Currency Convertible Bonds (FCCBs)/Foreign Currency Exchangeable Bonds only (C) Preference Shares only (1) Only A (2) Only B (3) All A,B & C (4) Only A & C (5) Only C Answer:(3) 14. Duncan Fletcher, on ___ 2011, became the first cricket coach to complete a century of matches during the first Test between India and England at Lord’s in London. (1) July 21 (2) July 24 (3) July 28 (4) July 31 (5) None Answer:(1) 15. While tackling the problem of inflation, which one of the following aspects is taken into consideration by the RBI ? (1) Balance between budget deficit and price stability (2) Balance between growth and financial stability (3) Balance between price of all essential commodities (4) Balance between growth, price stability and financial stability (5) None Answer:(3) 16. Which of the following is/are/a/an indicator of the financial health of a country ? (A) GDP (B) PPP (C) FDI in a year (1) Only A (2) Only B (3) Only C (4) All A, B & C (5) None Answer:(4) 17. Stock Exchanges’ play a role in an economy which may be termed as (1) hardly useful (2) useful but need strict regulation (3) harmful to proper capital markets (4) a gambling – where many investors get ruined (5) a very important segment to regulate inflation Answer:(2) 18. Which of the following is/are called Key policy rates by the Reserve Bank of India ? (A) Bank rate (B) CCR (C) SLR (1) Only (A) (2) Only (B) (3) Only (B) & (C) (4) Only (A) & (B) (5) All (A), (B) & (C) Answer:(5) 19. APSPA was recently in news it stands for (1) Armed Forces Super Powers Act (2) Association of Financial Super Powers in Asia (3) Armed Forces Special Powers Act (4) Association of Forces & Super Powers in Asia (5) None Answer:(3) 20. Which of the following is/are the objective(s) of Free Trade Agreement, India has done with many countries ? (A) To provide support to entre preneurs for setting up new projects in tiny/SSI sector (B) For undertaking expansion of business (C) To support technology upgradation (1) Only A & B (2) Only B & C (3) All A, B & C (4) Only A & C (5) None Answer:(3) 21. Which of the following organizations issue the rules of global trade ? (1) World Bank (2) world Trade Organisation (3) Foreign Exchange Dealers’ Association (4) Directorate General and Foreign Trade (5) None Answer:(2) 22. One single statement that depicts the financial position of a bank and/or business enterprise at a given point of time is called (1) Statement of product details (2) Reconciliation Statement (3) Balance Sheet (4) Quarterly returns submitted to RBI (5) Trading and manufacturing account Answer:(3) 23. Banks borrow money from the RBI on which of the following rates ? (1) Reverse Repo Rate (2) Repo Rate (3) SLR (4) CRR(5) Savings Rate Answer:(2) 24. The Reverse mortgage scheme is launched to give benefit to which of the following groups of society ? (1) Govt. employees (2) Senior Citizens (3) Unemployed youth (4) War widows (5) None Answer:(2) 25. What does the letter ‘M’ depict in the term SME as used in the financial world ? (1) Maximum (2) Medium (3) Mercantile (4) Mutual (5) Ministry Answer:(2) 26. One of the major challenges banking industry is facing these days is deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following acts is passed to prevent this activity ? (1) Payment and settlements Act (2) Banking Regulation Act (3) Negotiable Instrument Act (4) Narcotics and Psychotropic Substance Act (5) Prevention of Money laundering Act. Answer:(5) 27. Which of the following organizations provides guarantee to the exporters ? (1) Exim Bank (2) Export Credit Guarantee Corporation (3) Director General Foreign Trade (4) Reserve Bank of India (5) Registrar of Companies Answer:(2) 28. Which of the following terms is not used in Banking world ? (1) Credit (2) Rate (3) Financial Status (4) Discount (5) Absolute zero Answer:(5) 29. What is the full form of IRR as used in banking/financial sectors ? (1) Internal Rate of Return (2) Internal Revaluation Reserve (3) Investment Reserve Ratio (4) Internal Risk Return (5) None Answer:(1) 30. Which of the following organizations provides credit history of the borrowers ? (1) CIBIL (2) ARCIL (3) SEBI (4) RBI (5) CCIL Answer:(1) 31. Banks need liquidity to meet which of the following objectives of banking ? (A) Meet deposit withdrawal (B) Fund loan demands (C) Maintain public confidence (1) Only A (2) Only B (3) Only C (4) Only A & B (5) Only B & C Answer:(4) 32. According to latest Economic Survey, which of the following sectors will provide largest share to Indian economy in the days to come ? (1) Agriculture (2) Industry (3) Services (4) Exports (5) None Answer:(3) 33. Which one of the following group represents key industries ? (A) Crude oil, electricity (B) Petroleum refining and finished steel (C) Cement and coal (1) Only group A (2) Only group B (3) Only groups A & B (4) Only group C (5) All groups A, B & C Answer:(5) 34. Which one of the following is covered in the list of services for service tax purposes ? (A) Insurance/health services (B) Hotal accommodation/airtravel services (C) Money changers/legal services (1) Only A (2) Only B (3) Only C (4) Both A & C (5) All A, B & C Answer:(5) 35. Banks make frequent changes in their product profile including introduction of new products etc. this is called ___ (1) Product Control (2) Product enhancement (3) Product marketing (4) Product enrichment (5) None Answer:(3) 36. Banking and Financial services, all over the world, are regulated usually by Monetary Authority of the land, who controls this function in India ? (1) Ministry of Finance (2) SEBI (3) RBI (4) IRDA (5) FEDAI Answer:(3) 37. FIMMDA stands for ___ (1) Foreign Investment Markets & Derivatives Market Association (2) Fixed Income Money Markets & Derivatives Association (3) Fixed Income & Money Market Development Association (4) Floating Income & Money Markets Derivative Assets (5) None Answer:(2) 38. As per the Economic Survey 2010-11, tabled by Finance Minister Pranab Mukherjee in Parliament on February 25, 2011, the National Water Mission aims at increasing water use efficiency by ___ per cent. (1) 10 (2) 15 (3) 20 (4) 25 (5) None Answer:(3) 39. What do you understand by ‘Para Banking’ services ? (1) Eligible financial services rendered by banks (2) Utility services provided by banks (3) Services provided through business correspondents (4) Services provided to armed force personnel (5) None Answer:(2) 40. For which one of the following reasons, the Steel Ministry wants complete ban on export of iron ore from India ? (1) The price of iron ore exports is not competitive (2) The iron ore exports do not provide any value addition to exports (3) The prices of iron ore are high and as such the exports of the ore should be banned (4) Iron ore is a non-renewable resource like coal and petroleum products, hence it should be preserved (5) None Answer:(2) 41. What is a Cross Border Exchange ? (1) Trading of foreign currency in India (2) Trading of Indian rupee in exchange of other currencies/goods (3) Hawala tansactions in Indian Rupee (4) Unauthorized remittance of Indian Rupee (5) None Answer:(2) 42. For which one of the following reasons RBI has decided to undertake mid-quarter policy reviews ? (A) To realign its policies (B) To take steps and ensure smooth flow of credit (C) To provide guidance to the economy (1) Only A (2) Only B (3) only C (4) All A, B & C (5) None Answer:(4) 43. Which one of the following is the objective of Financial Stability and Development Council ? (1) To address inter-regulatory issues only (2) To focus on financial literacy only (3) To focus on financial inclusion only (4) Only (1) & (2) (5) All (1), (2) & (3) Answer:(5) 44. For which one of the following reasons has the planning Commission decided to convert itself into a system Reforms Commission ? (1) It is to make people to people contact (2) It is to understand the problems of people (3) It is to review the implementation of its policies (4) If is aimed at changing economic profile of the country (5) None Answer:(3) 45. Expand the term SWIFT. (1) Society for worldwide International Financial Telecommunications (2) Society for Worldwide Inter bank Financial Telecommunications (3) Society for worldwide international financial transfers (4) Society for worldwide interbank Fiscal Transactions (5) None Answer:(2) 46. For which one of the following reasons, NABARD has set up joint liability groups (JLG) of farmers ? (1) To facilitate delivery of credit to farmers (2) To facilitate better delivery, of credit to farmers through informal sources (3) To facilitate better delivery of credit to share croppers and those who do not have their own land (4) To facilitate better delivery of credit to farmers through Panchayats (5) None Answer:(1) 47. Which of the following terms is NOT used in Banking world ? (1) Holding Company (2) Post dated cheque (3) Credit (4) Time deposit (5) Centripetal force Answer:(5) 48. Which one of the following countries in Europe is facing financial crisis ? (1) Ireland (2) Portugal (3) Rumania (4) Hungary (5) France Answer:(1) 49. Loans of small or very small amounts given to low income group people are known as __ (1) Investment Loans (2) Micro Credit (3) Savings Loan (4) Secured Loans (5) Cash Credit Loans Answer:(2) 50. Which of the following is the Central Bank of U.S.A ? (1) Federation of Banks in U.S.A (2) Citigroup U.S.A (3) Bank of America (4) Central Bank of U.S.A (5)Federal Reserve System Answer:(5)
Posted on: Thu, 10 Oct 2013 06:29:30 +0000