Quiz : Banking Awareness

Quiz  : Banking Awareness

posted Nov 1, 2009 3:45 PM by Rohit raj   [ updated Nov 7, 2009 6:42 PM ]

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

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

Ans. (C) 1990

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

Ans. (B) State Bank of India reorganized in 1972 and carved out 4 major segments of the customers commercial & institutional, small industries and business, agricultural segment and personal , service sector

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13.When a person has a saving account in the bank , the bank assumes the position of ___?
(A)Debtor
(B)Creditor
(C)Agency
(D)Depositor
(E)Agent

Ans. (A) Debtor, please note bank functions as an agent or agency when it buys or sells securities on behalf of the customer or collects and makes payment on behalf of the customer

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14.Which among the following is a Bank rate?
(A)the rate at which a commercial Bank lends to its customers
(B)the rate at which a commercial Bank lends to its best customers
(C)the rate at which a central Bank lends to commercial Banks
(D)the rate at which a Commercial Bank lends to Central bank
(E)the rate at which a commercial Bank accepts deposits from its customers

Ans. (C) the rate at which a central Bank lends to commercial Banks

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15.An investor or speculator who subscribes to a new issue with the intention of selling them soon after allotment to realize a quick profit is called?
(A)Bull
(B)Bear
(C)Stag
(D)Short
(E)Tall

Ans. (C) Stag

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16.The Unclaimed deposits are those deposits which haven’t been operated for ______?
(A)5 years or more
(B)7 years or more
(C)10 years or more
(D)12 years or more
(E)15 years or more

Ans. (C) 10 years or more as per u/s 26 of RBI act

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17.In which year Statutory Liquidity Ratio was first imposed on banks?
(A)1949
(B)1951
(C)1955
(D)1968
(E)1971

Ans. (A) March 31. Every bank has to publish its balance sheet as on March 31st (29). Banking regulation Act 1949

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18.On which of the following states a Bank publishes its balance sheet ?
(A)March 31
(B)April 1
(C)December 31
(D)January 1
(E)None of the above

Ans. (A) March 31. Every bank has to publish its balance sheet as on March 31st (29). Banking regulation Act 1949

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19.Which among the following was first Commercial Bank of India?
(A)Hindustan Bank
(B)The bank of Bengal
(C)Imperial Bank of India
(D)Punjab National Bank
(E)Allahabad Bank

Ans. (A) The first commercial bank was Hindustan Bank established in 1770 in Calcutta

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20.A new private bank is established under which of the following?
(A)Banking regulation Act 1949
(B)Companies Act 1956
(C)RBI Act 1934
(D)All of the above
(E)None of the above

Ans. (B) A new private bank has to be registered as a public ltd. Company under companies act 1956

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