Quiz 001 : Banking Awareness

1.Which among the following are oldest financial institutions in India?
(A)Private Agencies
(B)Commercial Banks
(C)Reserve Bank of India
(D)State bank of India
(E)None of the above

Ans. (B) Commercial Banks
2.In which year SIDBI was established?
(A)1975
(B)1998
(C)1990
(D)1978
(E)1981

Ans. (C) 1990
3.Which among the following is the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector?
(A)IFCI
(B)IDBI
(C)ICICI
(D)SIDBI
(E)SBI

Ans. (A) IFCI , It was established in 1948, ICICI in 1956 and IDBI in 1964
4.Which among the following is the main function of Agricultural Finance Corporation Limited ?
(A)consultancy services in the field of agriculture
(B)social service organization
(C)Agricultural commodities exchange
(D)Agricultural cooperative society
(E)none of the above

Ans. (A) consultancy services in the field of agriculture
5.National Rural Credit Stabilization Fund is a Institution of purpose-specific funds in which of the following?
(A)IDBI
(B)SIDBI
(C)NABARD
(D)IFCI
(E)AFCL

Ans. (C) NABARD
6.To meet the need of which of the following the concept of Land Development Bank has been developed?
(A)Industries
(B)Real estate
(C)Farmers
(D)Export Oriented Units and SEZ
(E)Education Institutes

Ans. (C) Farmers
7.Which among the following statement is incorrect regarding Land Development Banks?
(A)They are cooperative institutions
(B)They meet the needs of the farmers for development purposes
(C)They have two tier structures state and district level
(D)They grant loans on mortgage security
(E)They are customers of NABARD

Ans. (C) C. RBI in its notification dated August 7, 09 said that in a three-tier structure consisting of state co-operative banks at the apex level, central co-operative banks at the intermediate level and primary agricultural credit societies at the ground level.
8.Which among the following statement is incorrect regarding the Regional Rural Banks?
(A)They have been established as per the provisions of Regional Rural Banks Act 1976
(B)Every Regional Rural Bank is sponsored by commercial banks
(C)The commercial banks need to approach to the state governments to establish Regional Rural Banks
(D)The Regional Rural Banks may open branches in notified area
(E)All statements are correct

Ans. (C) all correct except C .The commercial banks need to approach to the CENTRAL  government  to establish Regional Rural Banks
9.Which among the following is correct statement?
(A)Cooperative Banks are fully controlled by RBI
(B)Cooperative Banks are partially controlled by RBI
(C)Cooperative Banks are Not controlled by RBI
(D)Cooperative Banks are fully controlled by Banking Regulation Act 1949
(E)None of the above is correct

Ans. (B) B is correct. The commercial banks are governed by banking regulation act 1949, but only some sections of this act apply to cooperative Banks. So RBI has partial control over cooperative banks
10.Agency Functions of the commercial Banks are __?
(A)Primary Functions
(B)Secondary Functions
(C)Tertiary Functions
(D)Social Function
(E)None of the above

Ans. (D) Secondary Functions include Agency function and general utility services
11.Which among the following is an essential feature of a commercial bank?
(A)providing Locker facilities
(B)dealing with credit
(C)providing business information and data
(D)Underwriting
(E)Sale of securities

Ans. (B) Dealing with credit
12.Which among the following Banks in India was the first to take a major step of reorganizing based upon market segmentation?
(A)ICICI Bank
(B)State Bank of India
(C)Punjab National Bank
(D)Bank of Baroda
(E)Indian Bank