1. Bank Rate can be defined as: Marks: 2+ 0.5Interest rate payable by banks on deposit Interest changed by banks on loans & advances Interest rate charged by RBI on lending to Commercial bank All the above The Correct Answer is : Interest rate charged by RBI on lending to Commercial bank 2. Which of the following statements, is correct regarding bank rate? Marks: 2+ 0.5interest rate to decide interest rates on deposits by banks it is a tool of credit control it attacts money supply all the above The Correct Answer is : all the above 3. which of the following statements, is not correct regarding bank rate? Marks: 2+ It has no relation with the interest charged by Banks on loans & advances Interest on loans & advances is generally higher than the bank rate Bank rate affects inflation rate Bank rate can be increased or decreased by the RBI The Correct Answer is : It has no relation with the interest charged by Banks on loans & advances 4. Spread can be defined as: Marks: 2+ 0.5Difference between interest income & interest expenditure Total yield on accounts of interest Profit margin of a bank Extent of risk on advances The Correct Answer is : Difference between interest income & interest expenditure 5. At present the bank rate is: Marks: 2+ 0.54.5% 6% 7.5% 6.5% The Correct Answer is : 6% 6. Bank rate is desided by: Marks: 2+ 0.5Indian bank association Individual commercial bank Finance ministry None of these The Correct Answer is : None of these 7. Which of the following sectors of RBI Act deals with the provision of bank rate policy? Marks: 2+ 0.5Section 49 Section 21 Section 34 Section 42 The Correct Answer is : Section 49 8. Prime lending rate (PLR) is: Marks: 2+ 0.5Interst charged to prime borrowers of the bank It is minimum interest the bank would charge on Borrowed Accounts It is the optimum rate of interest on loans & advances All the above The Correct Answer is : Interst charged to prime borrowers of the bank 9. Prime lending rate is desided by: Marks: 2+ 0.5RBI Indians Bank Association Prime borrowers of the bank Individual bank The Correct Answer is : Individual bank 10. The purpose of maintaining Cash Reserve with RBI by commercial banks is To provide better liquidity for banking system To enable commercial banks to meet crises & emergencies To enable RBI to control the credit All the above The Correct Answer is : All the above 11. Which of the following statement, is not correct regarding CRR? Marks: 2+ 0.5The minimum CRR is 3% of Bank's demand & time liabilities b. RBI does not pay any interest on first 3% of CRR amount held with it RBI is bound to pay interest on cash balance held with it beyond 3% level The RBI is empowered to increase or decrease the level of CRR The Correct Answer is : RBI is bound to pay interest on cash balance held with it beyond 3% level 12. Which of the following statements, is correct in respect of incremental CRR? RBI can impose incremental CRR on demand & time liabilities Incremental CRR would be in additional to regular CRR c. Incremental would be applicable only to additional deposits added after a specified date The system of incremental CRR has been dispensed with The Correct Answer is : The system of incremental CRR has been dispensed with 13. Which of the following penalities, the RBI can impose as a bank in case it defaults in maintaining the required CRR? Marks: 2+ 0.5It will impose penal interest upto 5% over the bank rate It can impose a fine on the officer responcible for default RBI can prohibit the schedule Bank from receiving any fresh deposits All the above The Correct Answer is : All the above 14. Which of the following sections of banking regulation act 1949 deals with the pension of statutory liquidity ratio (SLR)? Marks: 2+ 0.5Section 42 Section 24 Section 3b None The Correct Answer is : Section 24 15. Statutory Liquidity Ratio (SLR) can be maintained in the following ways: Cash Gold Unencumbered approved securities All of these The Correct Answer is : All of these 16. Which of the following statements, is not correct regarding SLR requirement? The minimum amount of SLR is 25% of demand & time liabilities as at the end of notified Friday The RBI can increase the level of SLR upto 40% of demand and time liabilities RBI uses SLR as an instrument of credit control Maintenance of SLR does not effect creation capacity of Commercial Bank The Correct Answer is : Maintenance of SLR does not effect creation capacity of Commercial Bank 17. Which of the following statements, is correct in respect of maintenance of SLR? Marks: 2+ 0.5Any cash balance with RBI in excess of mandatory requirement under section 42 will be included as cash for the purpose of SLR RBI decided the method of valuation of securities for the purpose of SLR The Narasimha Committee suggested to bring down the level of SLR to 25% All the above The Correct Answer is : All the above 18. Which of the followingstatements,iscorrectregarding licensing of a banking company under Banking Regulation Act 1949? Marks: 2+ 0.5It is necessary to obtain a license for opening of Banking company RBI has powers to cancel the license The bank may made an appeal with the central government against the decisions of the RBI All the above The Correct Answer is : All the above 19. Which of the following statements, is not correct regarding licensing of a Banking company? Marks: 2+ 0.533. 33. Which of the following statements, is not correct regarding licensing of a Banking company?Which of the following statements, is not correct regarding licensing of a Banking company? The financial position of the bank is sound A banking company having applied for a license may carry on its business It is not necessary for a foreign bank to obtain licence from RBI The Correct Answer is : It is not necessary for a foreign bank to obtain licence from RBI 20. Which of the following statements, is correctregarding opening of Branch by a Bank? Marks: 2+ 0.5It is necessary for a bank to obtain licence from the RBI to open a new branch, change of location of a branch It is not necessary for a bank to obtain license if branch is to open for 30 days or less The place of a Bussiness for the purpose of a bank branch is where deposits are received, cheques encashed or moneys lent All the above The Correct Answer is : All the above 21. Which of the following statements, is correct regarding closing of a branch of a Bank? Marks: 2+ 0.5A bank is free to close any of its branch & RBI permission is not required The loss making branches/non-visible branches can be merged Bank can not close a rural branch All the above The Correct Answer is : All the above 22. Which of the following statements, is correct? Marks: 2+ 0.5Banks are required to submit a return of unclaimed deposits under section 26 of banking regulation Act, 1949 This includes all the accounts which have not been operated upon for ten years The return of unclaimed deposits is required to be submitted on 31st March of every year All the above The Correct Answer is : All the above 23. Which of the following statement is correct Marks: 2+ 0.5Researve Bank has to apply to higher court for winding up of a banking company The central government can make an order of moratorium for a fraud not exceeding 6 month The central government has the power to sanction the schemes of amaigamation or reconstruction prepaid by the RBI All the above The Correct Answer is : All the above 24. Which of the following is empowered tomake rules regarding preservation of records by a banking company? Marks: 2+ 0.5Central Government Reserve Bank of India Indian Bank Association National Institution of bank managem The Correct Answer is : Central Government 25. What is the duration of preserving records of Books & Accounts by a Banking Company? Marks: 2+ 0.55 Years 10 years 13 Years 12 years The Correct Answer is : 13 Years 26. What is nomination Marks: 2+ 0.5A facility given to depositors by the Government It confers a right to the nominee to receive payment of a deposit after death of depositors It is a process of appointing legal heir by the depositors It is a part of will on behalf of a depositor The Correct Answer is : It confers a right to the nominee to receive payment of a deposit after death of depositors 27. Which of the following is correct in relation to nomination Marks: 2+ 0.5Nomination can be made by a depositor or joitly with other depositors A minor can also be nominated as the nominee A nominee is entitled to receive payment of the deposit only after the death of depositor or all the depositors All the above 28. Which of the following statements, is not correct regarding nomination? Two or more persons can be nominated by a depositor or group of depositors A bank will have a full discharge of its liability if it makes the payment to the nominee Bank is not obliged to receive any notice of claim from any other person other than the depositors The bank will take due notice of any order or certificate from competent jurisdiction to deposits where nominee is appointed The Correct Answer is : Two or more persons can be nominated by a depositor or group of depositors 29. which of the following statements, is correctregarding nomination? Marks: 2+ 0.5Nominee can be appointed for the safe custody articles A minor nominee shall have to be represented by a major person The nomination can be cancelled by the depositor All the above The Correct Answer is : All the above 30. Which of the following statements, is correct regarding nomination? Marks: 2+ Two or more hirers of a locker with joint signatures may nominate one or more persons as nominee who may have access to the locker Even a minor can appoint a nominee but a major person has to sign on its behalf If the nominee dies before the death of the depositors, the nomination automatically terminates All the above The Correct Answer is : All the above 31. Which of the following agencies,isempowered to frame rules specifying the period of preservation of records & instruments by a banking company?records & instruments by a banking company? Marks: 2+ 0.5Reserve bank of India Central government Competent court India Bank Association The Correct Answer is : Central government 32. Which od the following statement, is correct? Marks: 2+ 0.5A paid instrument can be returned by a bank on the request of a customer The request should be received within prescribed preservation period The bank should keep a true copy of the instrument made by mechanical process at the cost of the depositor All the above The Correct Answer is : All the above 33. RBI approval is required for appointment of a chairman of a bankWhich of the following statements, is correct? Marks: 2+ 0.5RBI approval is required for appointment of a chairman of a bank RBI is empowered to remove top managerial personnel of a bank RBI may appoint suitable person in place of the person so removed All the above The Correct Answer is : All the above 34. Which of the following statement, is correct? Marks: 2+ 0.5RBI is empowered to conduct security of the affairs of the banking company in addition to conducting regular inspection RBI can conduct inspection of any Banking company & its Books of Accounts Based on recommendations of the RBI, the central government may prohibit banking company from receiving fund deposites All the above The Correct Answer is : All the above 35. What are the powers of RBI under section35A of the Banking Regulation Act 1949 for issuing directions to Bank? Marks: 2+ 0.5To issue directions in the public interest or in the interest of Banking policy To prevent affairs of banking company if it is detrimental to the interests of depositors To secure the proper management of any banking company All the above The Correct Answer is : All the above 36. Which of the following orders, the RBI may pass when the affairs of a banking company are detrimental to the interest of public? Marks: 2+ 0.5To call any officer of the Bank to discuss the matter with RBI officials b. RBI may depute its officer to watch the proceedings at any meeting of the Board of Directors To instruct Banking company to make within specified time the changes in the management All the above The Correct Answer is : All the above 37. Which of the following orders, the RBI may pass when the affairs of a Banking company aredetrimental to the intrest of the public? Marks: 2+ 0.5To determinate the policy in relation to advances to be followed by Banking companies To decide the purpose for which advances may or may not be made To fix margin to be maintained in respect of securd advances All the above The Correct Answer is : All the above 38. Which of the following statement, is correct? Marks: 2+ 0.5The RBI may decide the maximum amount of advances which a Bank may provide to one company or firm or individual RBI may advice the bank for which maximum amount of guarantee may be given to any one company or firm RBI is empowered to determine other terms & conditions to be followed by a Banking company while considering the loans & Advances All the above The Correct Answer is : All the above 39. Which of the following statements, iscorrect? Marks: 2+ 0.5RBI may decide interest rate to be charged by a Bank on individual loans Margin amount on secured loans can be decided by the RBI RBI may stipulate norms for the banks for the commission to be charged on guarantee Maximum amount of loan which can be considerd by a bank to a single party having regard to the paid up capital, Reserves & Deposits of the The Correct Answer is : RBI may decide interest rate to be charged by a Bank on individual loans 40. Which of the following statements, is correct regarding rate of intrest on loans & advances: Marks: 2+ 0.5Individual Banks are free to determine the interest rates on loans and advances The bank may vary the intrest rates are among different parties for the similar kind of loans Interest charged by the bank to the debtor shall not be re-opened in a court All the above The Correct Answer is : All the above 41. Which of the following statements is notcorrect in connection with interest on loans & advances? Marks: 2+ 0.5The bank may waives the part or full of interest charged to a borrower The basnk has liberty to provide interest free loan to a borrower In case the interest charged by the bank is not inconfirmity with the rate prescribed by the RBI, the court may disallow such excess interest The bank can charge the interest below the prime lending rate The Correct Answer is : The basnk has liberty to provide interest free loan to a borrower 42. The social control on banking companies was imposed on: Marks: 2+ 0.51.2.1969 31.12.1968 1.7.1968 19.11.1968 The Correct Answer is : 1.2.1969 43. 14 major commercial banks werenationalized on: Marks: 2+ 0.51.7.1969 19.7.1969 1.1.1969 1.4.1969 The Correct Answer is : 19.7.1969 44. The social control was imposition ofadditional control on private sector banks in term of: Marks: 2+ 0.5Determining priorities in lending & investments Evolving guidelines for the management Promoting re-orientation of the decision making machinery All the above The Correct Answer is : All the above 45. Which of the following is not a public sector bank? Marks: 2+ 0.5All nationalized bank State bank of India & its Associates Newly incorporated banks like ICICI bank Regional Rural Banks The Correct Answer is : Newly incorporated banks like ICICI bank 46. Which of the following Banks' undertaking was taken over by State Bank of India Imperial Bank of India Bank of Bengal Presidency Bank None of These The Correct Answer is : Imperial Bank of India 47. The State Bank of India was nationalized in: Marks: 2+ 0.51964 1961 1965 1955 The Correct Answer is : 1955 48. How many Banks were nationalized in the second phase? Marks: 2+ 0.56 10 7 4 The Correct Answer is : 6 49. The 6 private Commercial Banks were nationalized on: Marks: 2+ 0.54.9.1972 31.12.1975 30.6.1977 30.6.1977 The Correct Answer is : 30.6.1977 50. What was the deposite criteria of 14 Banks nationalized on 19th July 1969? Rs. 1000 Crore Rs. 500 Crore Rs. 100 Crore Rs. 50 Crore The Correct Answer is : Rs. 50 Crore 51. The first Act of Bank Nationalisation of 14 Banks was passed in: Marks: 2+ 0.51969 1970 1967 1968 The Correct Answer is : 1969 52. Which of the following Acts, is now applicable to 14 nationalised Banks? The banking companies (Acquisition and transfer of undertakings) Act, 1969 The banking companies (Acquisition and transfer of undertakings) Act, 1970 The banking companies (acquisition and transfer of undertakings) Act, 1980 All the above The Correct Answer is : The banking companies (Acquisition and transfer of undertakings) Act, 1970 53. Which of the following nationalized banks re-named? Marks: 2+ 0.5United Bank of India United Commercial Bank Union Bank of India Dena Bank The Correct Answer is : United Commercial Bank 54. How many members can be nominated as Board of Directors on the Board of a Ban Marks: 2+ 0.511 13 12 15 The Correct Answer is : 15 55. What is the maximum number of whole time Directors in a Bank? Marks: 2+ 0.52 3 1 4 The Correct Answer is : 2 56. The whole time Directors are appointed by: Marks: 2+ 0.5Reserve Bank of India Central government in consultation with RBI Individual Bank All the above The Correct Answer is : Central government in consultation with RBI 57. The maximum duration of appointment of Directors other than the whole time Directors would be: Marks: 2+ 0.51 Years 2 Years 3 Years 5 Years The Correct Answer is : 3 Years 58. Which of the following statements, isrect? Marks: 2+ 0.5The duration of a Bank can be appointed for a maximum period of five years The period of appointment can be extended Once a Director ceases to be a Director is not eligible for re-appointment as Director in the same Bank for a period of 4 Years All the above The Correct Answer is : All the above 59. Which of the following disqualifies a person to become a chairman of a Bank? If a person is a Dirctor of another company opther than a subsidiary of a Bank If a person has substantial interest in another company or the firm If a person is engaged in any other business or vocation All the above The Correct Answer is : All the above 60. What is the minimum number of board meetings to be held in a year by the Bank? Marks: 2+ 0.512 8 6 4 The Correct Answer is : 6 61. What is the minimum quoram for the board meeting? Marks: 2+ 0.550% of the total strength of Directors One-third of the number of Directors present on the day subject to a minimum of 3 One-third of the total strength of dDirectors No such condition The Correct Answer is : One-third of the number of Directors present on the day subject to a minimum of 3 62. In the second phase of Banks' notanalisation, 6 more Banks were nationalized on: Marks: 2+ 0.531.12.1974 31.03.1975 01.01.1980 15.04.1980 The Correct Answer is : 15.04.1980 63. Which of the following was the criteria for nationalization of 6 private sector banks in 1980? Marks: 2+ 0.5A minimum capital of Rs. 100 crore A minimum of Rs. 200 crore Demand and time liabilities A bank with a minimum of Rs. 200 crore assets None of the above The Correct Answer is : None of the above 64. The nationalized New Bank of India was later merged with: Marks: 2+ 0.5Central Bank of India Bank of Baroda Punjab National Bank Canara Bank The Correct Answer is : Punjab National Bank 65. What is the total number of public sectorBanks as now? Marks: 2+ 0.519 20 27 28 The Correct Answer is : 28 66. The authorized capital of a nationalized bank is: Marks: 2+ 0.5Rs. 1500 Crore Rs. 1000 Crore Rs. 500 Crore Rs. 5 lac The Correct Answer is : Rs. 1500 Crore 67. Which of the following statements, is correct regarding capital of a nationalized bank? Marks: 2+ 0.5The authorized capital may be raised Rs. 3000 Crore The capital can not be reduced below the level of Rs. 1500 crore Government share of the paid up capital can not be less than 51 percent All the above The Correct Answer is : All the above 68. Which of the following statements, is notcorrect? Marks: 2+ 0.5The nationalized Banks may go to public to raise capital Public sector Banks can raise foreign equity upto 49 per cent Private sector Banks can raise capital from the public Regional Rural Banks can not raise from the public The Correct Answer is : Public sector Banks can raise foreign equity upto 49 per cent 69. Which of the following norms are applicable to a new private sector bank? A minimum capital of Rs. 300 crore and net of Rs. 300 crore Foreign Equity upto 74% c. They can open the Branches including urban and metropolitan centres without permission from the RBI All the above The Correct Answer is : All the above 70. Which of the following statements, is correct regarding the operations of new private sector banks? Marks: 2+ 0.5They will make full use of automation They need to achieve priority sector target of 40% of the net bank credit They will not be allowed to set up any subsidiary or mutual fund for atleast 3 years after its establishment All the above The Correct Answer is : All the above 71. The capital adequacy norms in banks were introduced in: Marks: 2+ 0.5April 1991 March 1992 April 1992 July 1992 The Correct Answer is : April 1992 72. Capital adequacy ratio is the ratio of: Marks: 2+ 0.5Capital as compared to total Deposites Capital as compared to total Advances Capital as compared to total Assets Capital as compared to Risk Adjusted Assets The Correct Answer is : Capital as compared to Risk Adjusted Assets 73. Which of the following is correct regarding Capital Adequecy ratio? Marks: 2+ 0.5The objectivce of Capital Adequancy is to strength the financial stability of banks Capital is divided into two tiers, tier I and tier II Assets are assigned risk weight from 0-100 based on intensity of risk All the above The Correct Answer is : All the above 74. The banks are required to achieve a minimum Capital Adequecy ratio by March 5 which is prescribed as: Marks: 2+ 0.56 Per cent 8 Per cent 9 Per cent 10 Per cen The Correct Answer is : 10 Per cen 75. The concept of capital Adequacy in banks was introduced by: Marks: 2+ 0.5Narasimham Committee Basle Committee Reserve Bank of India Ministry of Finance The Correct Answer is : Basle Committee 76. Which of the following is accounted for tier I Capital of a Bank? Marks: 2+ 0.5Paid up Capital Statutory Reserve Disclosed Free Researve & Capital Reserves arising out of sale of assets All the above The Correct Answer is : All the above 77. Which of the following is accounted for Tier-II Capital of a Bank? Marks: 2+ 0.5Undisclosed Reserve Revalution eserve and general provisions Hybrid debt capital instrument and subordinated debt All the above Marks: 2+ 0.5- The Correct Answer is : All the above 78. Which of the following ratio of Capital Adequecy ratio is prescribed for Indian Banks which have branches abroad? Marks: 2+ 0.59 percent 10 percent 12 percent 15percent The Correct Answer is : 12 percent 79. Which of the following statements, is not correct regarding Risk Weighted Assets? Marks: 2+ 0.5Cash balance with RBI and other Banks and money at call and short notice carry zero risk weight Staff loans should be assigned 100 per cent risk weight Forest open position should have 100 per cent risk weight Government guaranted advances have zero risk The Correct Answer is : Government guaranted advances have zero risk 80. The government guaranted advances should have the following risk: Marks: 2+ 20% 50% 100% It should have same risk weight as in the case of other advances The Correct Answer is : It should have same risk weight as in the case of other advances 81. The 'CAMELS' Rating for banks was recommended by: Marks: 2+ 0.5Narasimha Committee Padmanabhan Committee Nayak Committee Rangrajan Committee The Correct Answer is : Padmanabhan Committee 82. What is the concept of 'CAMELS' Rating? Marks: 2+ 0.5It deals with expansion of Banks by RBI It is a methiod of performance evalution of banks It is the process of internal audit All the above The Correct Answer is : It deals with expansion of Banks by RBI 83. Which of the following is not included in 'CAMELS'? Marks: 2+ 0.5Capital adequacy and assts Quality Management and Earning Performance Employees Performance Liquidity and system The Correct Answer is : Employees Performance 84. Which of the following ratings are provided in 'CAMELS' Approach? Marks: 2+ 0.5A to E A,B.C A&B A to D The Correct Answer is : A to E 85. Which of the following Rating Approach is applicable to foreign banks operating in India? Marks: 2+ 0.5CAMELS CAMEL CAMEL CACE The Correct Answer is : CAMEL 86. Which of the following statements, is correct regarding CAMELS Approach? The banks have been classified into two categories for the purpose of Rating For the Rating of Foreign banks compliances with regulatory guidelines is significant The Reserve Bank of India is the authority to decide Ratings All the above The Correct Answer is : All the above 87. Which of the following supervision systems was implemented by RBI in the year 2002-03? Marks: 2+ 0.5Risk Based Supervision Financial strength supervision Monetary and credit supervision Overall bank management supervision The Correct Answer is : Risk Based Supervision 88. The risk based supervision in the banks was implemented by reserve bank of India in: Marks: 2+ 0.5First quarter of financial year 2002-2003 Last quarter of financial year 2002-2003 Financial year 2002-2003 None of the above The Correct Answer is : Last quarter of financial year 2002-2003 89. Which of the following is included in Risk Based Supervision of Banks by the RBI? It is essential on site inspection driven The inspection are conducted with references to Balance sheet dates Supervisions follow-up commences with the detailed findings of annual financial inspection All the above The Correct Answer is : All the above 90. What are the important features of new approach of Risk based supervision of banks? Marks: 2+ 0.5Optimum utilistion of supervisory resources To minimize impact of crises situation in the financial system It involves continues monitoring and evalution of the risk profiles All the above The Correct Answer is : All the above 91. The efficiency and success of risk based supervision in Banks depend on: Quality and reliability of data Sound system and technology Appropriate risk control mechanism All the above The Correct Answer is : All the above 92. In what way Risk Based Supervision is better than CAMELS approach? Marks: 2+ Effective use of supervisory resources Cushion against Risks Focused attention on weak Banks All the above The Correct Answer is : All the above 93. Which of the following is not major element of Risk Based Supervision approach? Risk profiling of Banks Monitorable Action plan (MAP) Risk weighted assets Role of External Auditors in Banking supervision The Correct Answer is : Risk weighted assets 94. What does a risk profile contain? Marks: 2+ 0.5Financial & non-financial risks Risks are categorized as financial and non-financial risks (a) and (b) both none of the above The Correct Answer is : (a) and (b) both 95. Business risks in Risk Based Supervision are Marks: 2+ 0.5Capital and credit risk Market risk Liquidity risk All the above The Correct Answer is : All the above 96. Which of the following is not Business Risk under Risk Based super-vision? Bussineess strategy and environment Risk Operational risk Operational risk Group risk The Correct Answer is : Operational risk 97. The control risks are: Marks: 2+ 0.5Internal central Risk Organisation Risk Management isk & Compliance Risk All the above The Correct Answer is : All the above 98. In how many areas assessment is to bemade under Risk Based Supervision 12 8 4 10 The Correct Answer is : 12 99. The level of risk can be determined as Marks: 2+ 0.5Low Moderate Fair or High All the above The Correct Answer is : All the above 100. The direction of the Risk under Risk basedAssets can be: Marks: 2+ 0.5Increasing Decreasing Stable Any one of the above The Correct Answer is : Any one of the above 101. What are the various sources of information to assess the Risk Profiling Market intelligence reports Adhoc data from external and internal auditors On site findings All the above The Correct Answer is : All the above 102. What is the normal supervisory cycle under Risk Based supervision process? 3 months 6 months 12 months 12 months The Correct Answer is : 12 months 103. Which of the following areas Monitarable Action Plan (MAP) of RBI would include? Marks: 2+ 0.5Improvement areas identified during the current on site and off site supervisory process Accountability of key individuals of the bank Sanction and penalties to Banks for not meeting the monitorable action plan All the above The Correct Answer is : All the above 104. Which of the following statements, is correct regarding Risk Based supervision of RBI? Marks: 2+ 0.5The risk profile would focus on high risk areas The RBI will have effective review, evalution and follow-up of the risk profile of the concerned bank The focal point of contacts for all banks would be central office of RBI and its Regional offices All the above The Correct Answer is : All the above 105. Which of the followingneeds focus tochange management implications under Risk based supervision? Marks: 2+ 0.5- Setting up of risk management architecture Adoption of risk focused internal audit Setting up of a compliances unit at head office All the above The Correct Answer is : All the above 106. In which year's monetary policy the scheme of risk based supervision was announced by the RBI? Marks: 2+ 0.52000-01 2001-02 1999-2000 2002-03 The Correct Answer is : 2000-01 107. What are the major objectives of credit policy? Marks: 2+ 0.5To control money supply To monetary flow of credit To attain full employment and maintain price stability All the above The Correct Answer is : All the above 108. Which of the following are the assumptionsfor neutral money? Marks: 2+ 0.5The quantity of money has no effect on the prices When money becomes neutral price of the product will depend on productive power of the economy Neutral money policy implies that monetary authorities should not change supply of money in response to changes I the supply of goods All the above The Correct Answer is : All the above 109. Which of the following formulates monetary and credit policy Marks: 2+ 0.5Reserve Bank of India Ministry of Finance Ministry of Commerce Indian Banks Association The Correct Answer is : Reserve Bank of India 110. What does a credit policy generally contain? Marks: 2+ 0.5Any changes in the bank rate and interest rate Sectorwise priorities of credit allocation Reserve requirements of the bank All the above The Correct Answer is : All the above 111. Which of the following credit policy does not contain? Marks: 2+ 0.5Fiscal Concessions Margin Requirements Selective Credit Control Measurs Open market operations The Correct Answer is : Fiscal Concessions 112. which of the following statements, is correct regarding credit policy? Credit policy is announced twice a year Policy announced in the month of April is called Busy season credit policy Policy announced in the month of October All the above The Correct Answer is : All the above 113. One of the objectives of monetary policy is to maintain exchange stability because: Marks: 2+ 0.5It is necessary for smooth international trade Exchange fluctuations lead to lack in confidence in a particular currency Any Fluctuation in the exchange rate has direct effect All the above The Correct Answer is : All the above 114. In which of the following areas monetary and credit policy helps? Marks: 2+ 0.5Efficient Payment Mechanism Adequate money supply Expansion of Finacial system All the above The Correct Answer is : All the above 115. Which of the following statements, is not correct? Marks: 2+ 0.5Monetary policy has facilited growth of financial institutions Monetary policy has resulted in widening the gaps between rich and poor Monetary policy has improved the balance of payment position Credit policy has been instrumental in the increased savings rate The Correct Answer is : Monetary policy has resulted in widening the gaps between rich and poor 116. What is open market operations being conducted by the Reserve bank of India? It is a process of buying and selling govt. securities by the RBI on behalf of the government It has direct impact on cash base of the commercial bank Both (a) and (b) None of the above The Correct Answer is : Both (a) and (b) 117. What happens when Reserve Bank of India sells govt. securities under open market operations Marks: 2+ 0.5The extra money soaks up with the bank It has multiplier effect in reducing money supply Interest rates go up All the above The Correct Answer is : All the above 118. What are the consequences of buying govt. securities by the RBI under open market operations? Marks: 2+ 0.5It adds to the stock of money in the economy The banks can lend more The extra liquidity has the power to push down interest rates All the above The Correct Answer is : All the above 119. Which of the following statements, is correct regarding open market operations? The RBI buys securities when the economy is sluggish and demand is not picking up RBI sells securities when the economy is over heated Open market operations are used seasonally to heat up or cool off the economyBI sells securities when the economy is over heated All the above The Correct Answer is : All the above 120. What is Repo? Marks: 2+ 0.5It is a method of borrowing against certain securities for a short period The borrower undertake a commitment to purchase back the same securities after specified period at predetermined price The difference between the two prices is treated as interest All the above The Correct Answer is : All the above 121. What is Reverse Repo? Marks: 2+ 0.5It is process where lender levels against the securities with a commitment to take back the securities from the borrower against payment at a specified price Revcerse Repo is helpful in contracting liquidity in the system It is an opposite practice to Repo All the above The Correct Answer is : All the above 122. Under Interim Liquidity adjustment Facility was managed through Marks: 2+ Repos Collatarate lending facility Open market operations All the above The Correct Answer is : All the above 123. Liquidity Adjustment Facility was launched on: Marks: 2+ 0.5June 5, 2000 July 1,2000 April 1, 2000 July 15, 2000 The Correct Answer is : June 5, 2000 124. What are the important features of theuidity Adjustment Facility? Marks: 2+ 0.5It is a process of variable reverse repo auctions Collaterised liquidity facility to primary dealers have been replaced by variable rate reverse repo auctions Liquidity adjustment facility will be operated at different timings of the same day All the above The Correct Answer is : All the above 125. What are the important features of theLiquidity Adjustment Facility? Marks: 2+ It affects liquidity in the system Interest rates have been stabilized It provised scope for more participants All the above The Correct Answer is : All the above 126. Which of the following statements, iscorrect? Marks: 2+ 0.5Repo rate is an overnight rate Repo rate is considered as the floor rat for all the call rates When market liquidity is easy, RBI receives heavy bids for repo auctions All the above The Correct Answer is : All the above 127. What are the main benefites Liquidity Adjustment Facility (LAF)? Marks: 2+ 0.5LAF is the quantum of adjustment The interest rates are flexible It helps to meet day to day liquidity mismatch in the system All the above The Correct Answer is : All the above 128. What are the consequences of cash reserve requirements? Marks: 2+ 0.5It effects the multiplier effect of the Banking System Higher the Reserve Ratio, lower the multiplier effect Lower the multiplier effect, lesser the money supply in the system All the above The Correct Answer is : All the above 129. Selective credit control is a process where: Marks: 2+ 0.5RBI selects certain commodities for controlling the flow of credit RBI puts different credit controls Those industries which are sensitive to inflationary pressures are selected All the above The Correct Answer is : All the above 130. What are the features of selective creditcontrol? Marks: 2+ 0.5They distinguish between essential and non-essential uses of Bank credit Only non-essential uses are brought under the scope of Credit Bank controls They effect not only the lenders but also the borrowers All the above The Correct Answer is : All the above 131. Which of the following is not correct regarding selective credit control Bank loans extended to speculators to hoard goods will lead to inflation Bank credit to consumers to raise demand for durable consumer goods will also lead to inflation The commodities are selected at random Selective credit controls are used to control inflationary pressure The Correct Answer is : The commodities are selected at random 132. Which of the following statements, is correct regarding margin money requirements? Marks: 2+ 0.5The reserve Bank may increase or decreas the margin money Higher margin money will reduce the amount of loan It is an effective method of controlling credit All the above The Correct Answer is : All the above 133. Which of the following agencies canexercise selective credit control? Marks: 2+ Ministry of finance Banking company itself Reserve bank of India None of these The Correct Answer is : Reserve bank of India 134. What are the main factors which influence Reserve Bank's decision of credit control? Marks: 2+ 0.5Public Interest Depositors interest In the interest of Banking Policy All these The Correct Answer is : All these 135. What are the main instruments of selective credit control? Marks: 2+ 0.5Minimum margins for lending against selected commodities Ceiling on the levels of credit Changing minimum rate of interest on advances against specified commodities All the above The Correct Answer is : All the above 136. The major sensitive commodities are: Marks: 2+ 0.5Foodgrains Sugar and oilseeds Vegetable oil All these The Correct Answer is : All these 137. The major controls which RBI can impose in case of selective commodities include: Marks: 2+ 0.5Restriction on credit Non-discount of bills Non-issue of guarantees All these The Correct Answer is : All these 138. In which of the following commodities, theRBI imposed selective credit control for the first time in1956? Marks: 2+ 0.5Whaet Paddy and oilseeds Oilseeds Sugar The Correct Answer is : Paddy and oilseeds 139. Which of the following commodities, is not covered under selective crditr control? Marks: 2+ 0.5Raw Jute Cotton and textiles Vegetables Synthetics textiles The Correct Answer is : Vegetables 140. Regulation on consumer credit includes: Marks: 2+ 0.5Incresed margin in Bank loans on durable articles Reduction in repayment schedule of bank loans Both (a) and (b) all the above The Correct Answer is : Both (a) and (b) 141. The direct action of RBI may involve thefollowing: Marks: 2+ 0.5Prohibit a particular bank against entering into a particular transaction RBI may charge penal interest on money borrowed by banks RBI may strictly warn a particular Bank for not complying the selective crdit control norms All the above The Correct Answer is : All the above 142. What does moral suasion imply? Marks: 2+ 0.5It is a kind of presentation and request made by RBI on commercial Banks RBI may issue certain guidelins to be followed during a particular period RBI may advise to provide favourble conditions for Bank credit in the period of business recession All the above The Correct Answer is : All the above 143. What are the implications of moral suasion? Marks: 2+ 0.5It has only psychological advantage It has no legal sanction It may be or not be an effective tool All the above The Correct Answer is : All the above 144. Rationing of credit is: Marks: 2+ 0.5A process of controlling and regulating the purpose of credit Where RBI can put variable portfolio ceilings fixing maximum amount of loan for a Bank Where RBI cqan put variable capital asset ratio i.e., the ratio of total assets to capital of the Bank Any one or all the above The Correct Answer is : Any one or all the above 145. Which of the following statements, is correct regarding rationing of credit? RBI fixes ceiling for specific categories of loans to a bank It rationing of credit is done to the amount, it is called quantitative control It rationing of credit is done for specific types of credit, it is quantitative control All the above The Correct Answer is : All the above 146. Which of the following are measures ofselective credit control? Marks: 2+ 0.5Margin requirement Regulation of consumer credit Direct Action by RBI All these The Correct Answer is : All these 147. Which of the following is not a measure of selective credit control? Marks: 2+ Moral suasion Bank rate policy Rationing of credit Decision on purpose of lending The Correct Answer is : Bank rate policy 148. What are the major constraints of selective credit control? Marks: 2+ 0.5Non-Banking sources of credit may adversely affect very purpose of selective credit control Banks may not reflect true position for which purpose the loan is granted Banks have no control to strictly ensure that loan proceeds have been used for the purpose for whoich, it is availed All the above The Correct Answer is : Banks may not reflect true position for which purpose the loan is granted 149. Which of the following is the limit of investment in plant and machinery for SSI sector? Marks: 2+ 0.5Rs. 10 lac Rs. 50 lac Rs. 100 lac Rs. 300 lac The Correct Answer is : Rs. 100 lac 150. Which of the following are the targets fordifferent categories of priority sector? Overall target 40% of net Bank credit Agriculture loans (direct and indirect) 18% Priority sector target for foreign Banks is 32% All the above The Correct Answer is : All the above 151. What is the sub-target to weaker sections made priority sector/ Marks: 2+ 0.55% 10% 20% 25% The Correct Answer is : 10% 152. Which of the following is the limiforHomeloans in rural and semi-urban areas for the purpose of priority sector advances? Marks: 2+ 0.5Rs. 2 lac Rs. 5 lac Rs. 15 lac Rs. 25 lac The Correct Answer is : Rs. 15 lac 153. Which of the following articles does not fallunder priority sector? Marks: 2+ 0.5Education loans Micro credit to Self help groups Teachers loan Loan to software Industry The Correct Answer is : Teachers loan 154. What is the maximum credit limit for which loan can be sanctioned to software industry under the priority sector? Marks: 2+ 0.5Rs. 100 lac Rs. 50 lac Rs. 10 lac Rs. 7.5 lac The Correct Answer is : Rs. 100 lac 155. Up to which of the following limits loan granted to Small Scale service Business Enterprises for instrument in fixed assets excluding lend and building are treated as priority sector: Marks: 2+ 0.5Rs. 10 lac Rs. 25 lac Rs. 100 lac Rs. 300 lac The Correct Answer is : Rs. 10 lac 156. Which of the following conditions should be fulfilled by a business Enterprises providing any service under priority sector loans? Marks: 2+ 0.5The original cost of equipment does not exceed Rs. 20 lac with a working capital limit of Rs. 10 lac or less The aggregate of term loan and working capital should not exceed Rs. 20 lac a) and (c) both (a) or (b) of the above The Correct Answer is : a) and (c) both 157. Which of the following is correct regarding loans to professional and self employed under the priority sector? Marks: 2+ 0.5Total borrowings should not exceed Rs. 10 lac of which working capital not to exceed Rs. 2 lac For qualified medical practitioners, total borrowings should not exceed Rs. 15 lac where working capital of Rs. 3 lac (a) and (b) of the above Only (a) of the above The Correct Answer is : (a) and (b) of the above 158. Which of the following is applicable for sub-targets under SSI advances? 40% of SSI advances should be granted to cottage industries tiny units with investment in plant and machinery up to Rs. 5 lac 20% of total credit to SSI should be provide to units where investment in machinery and plant is between Rs. 5 lac to Rs. 25 lac 40% of total SSI credit to the units where investment I machinery and plant exceed Rs. 25 lac all the above The Correct Answer is : all the above 159. which of the following norms are applicable to loans under DIR scheme? A minimum of one percent of total lendings in the previous year should be lent under DIR scheme Of the total DIR loans, 40% should go to SC/STS 2/3 of total DIR loans should be extended I rural and semi-urban areas all the above The Correct Answer is : all the above 160. Which of the following statements, is correct regarding priority sector advances by foreign Banks? Marks: 2+ 0.5Foreign Banks have to achieve 32% advances under priority sector Export finance by a Foreign Bank would be treated as priority sector Foreign Banks to lend a minimum of 10 per cent of net Bank credit to each SSI and export credit All the above The Correct Answer is : All the above 161. Which of the following guidelines are applicable in connection with shortfall in lending to priority sector? Marks: 2+ 0.5An equivalent amount of shortfall under agriculture sector should be invested with RIDF Any shortfall in achieving sub-target under SSI sector, an equivalent amount should be invested with SIDBI Interest of RIDF investment is payable at 40% All the above The Correct Answer is : All the above 162. Which of the following agencies maintain RIDF (Rural Infrastructure Development Fund)? Marks: 2+ 0.5Ministry of Rural development Reserve Bank of India NABARD SIDBI The Correct Answer is : NABARD 163. Weaker sectors include: Marks: 2+ 0.5Small and Marginal farmers Lendless labourers tenant, farmers, artisans and village and cottage industries where credit limit does not exceed Rs. 25000 Beneficiaries under SGSY, SJSRY, SLRS All the above The Correct Answer is : All the above 164. Which of the following constitute priority sector advances? Marks: 2+ 0.5Advances upto Rs. 25 lac granted for financing of distribution of agriculture inputs Entire amount of refinance provided by the Sponsor Bank to RRB Securised assets relating to SSI All the above The Correct Answer is : All the above 165. Reserve Bank of India is: Marks: 2+ 0.5An exctensio wing of Ministry of Finance, Govt. of India A body corporate having perpetual succession and a common seal An institution owned by Indian Banks Association A private sector company The Correct Answer is : A private sector company 167. The reserve Bank of India was set up in Marks: 2+ 0.51935 1934 1938 1940 The Correct Answer is : 1935 168. The RBI was brought into the ownership of government through RBI Act, 1948 in: Marks: 2+ 0.51948 1949 1950 1951 The Correct Answer is : 1949 169. The RBI can be defined as: Marks: 2+ 0.5A lender at the last resort A bank which controls credit slow in the economy of the country A custodian of Commercial Bank's Cash Reseaves All of the abov The Correct Answer is : All of the abov 170. In which the following year, therecommendation of establishment of RBI mad 1926 1928 1931 1933 The Correct Answer is : 1926 171. Which was the following commission recomended for establishment of Researve Bank of India? Marks: 2+ 0.5Central Banking Commissio Hilton young commissiso Precidency Banking Commissio None of the abov The Correct Answer is : Hilton young commissiso 172. The Central Banking Enquiry Commission was set up in: Marks: 2+ 0.51925 1926 1931 1933 The Correct Answer is : 1931 173. Who passed the Bill to set up the Reserve Bank of India? Marks: 2+ 0.5Lagislative Assembly Parliament Governor General British counsil The Correct Answer is : Lagislative Assembly 174. The RBI was nationalized in: Marks: 2+ 0.51934 1947 1948 1949 The Correct Answer is : 1948 175. which of the following is not the member of Central Board of Directors of RBI? Finance Minister of central government Governors & Dy. Governors of RBI Directors of local boards of RBI Directors nominated by central government The Correct Answer is : Finance Minister of central government 176. How many Local Boards the RBI has? Marks: 2+ 0.52 3 4 5 The Correct Answer is : 4 177. The currency notes issued by RBI are declared as: Marks: 2+ 0.5Legal tender Limited legal tender Unlimited legal tender None of these The Correct Answer is : Unlimited legal tender 178. The minimum security to be maintained by the RBI for issue of currency notes is: Marks: 2+ 0.5Rs. 200 Crore Rs. 500 Crore Rs. 2000 Crore Rs. 5000 Crore The Correct Answer is : Rs. 200 Crore 179. Which of the following is not the function of currency chest? Marks: 2+ 0.5It facilitates deposit of surplus Cash It exchanges the coins & notes It can issue currency in the open market It provides cash to Banks in case of need The Correct Answer is : It can issue currency in the open market 180. Reserve Bank of India is: Marks: 2+ 0.5An exctensio wing of Ministry of Finance, Govt. of India A body corporate having perpetual succession and a common seal An institution owned by Indian Banks Association A private sector company The Correct Answer is : A private sector company 181. Authorised, subscribed and paid up share capital of Researve bank of India is: Rs. 5000 crore Rs. 5 crore Rs. 50 crore Rs. 100 crore The Correct Answer is : Rs. 50 crore 182. Which Bank is the Banker to the central government? Marks: 2+ 0.5Central Bank of India Researve Bank of India Punjab National Bank All these The Correct Answer is : Punjab National Bank 183. The term 'Ways and Means' advances rafer to: Marks: 2+ 0.5The temporary advance made to the government by its Bankers to bridge the internal between expenditure and the flow of receipt of revenues The advance given by the Banks to the poorest of the society Lending made under PMRY scheme All the above The Correct Answer is : Lending made under PMRY scheme 184. The reserve Bank of India is also called the lender of the last resort to schedule commercial banks because: Marks: 2+ 0.5RBI meets directly or indirectly all the reasonable demands for financial accommodation subject to get facilites from other banks They are not able to get facilities from other Banks Both of the above They are able to get facilities from private sector banks The Correct Answer is : They are able to get facilities from private sector banks 185. RBI has given freedom to Banks to: Marks: 2+ 0.5Convert their non-viable rural branches into satellite offices on certain conditions Provision of locker facilities at the extension counters Closing of loss making branches in urban/metro cxenteres and loss making branches at rural centres served by two Commercial Bank branches excluding RRBs, after mutual consent All the above The Correct Answer is : All the above 186. In terms of section 19 of the RBI Act, 1934, the RBI has prohibited from: Making loans or advances Drawing or accepting bills payable otherwise than on demand Allowing interest on deposits or current accounts None of the above The Correct Answer is : Allowing interest on deposits or current accounts 187. Introduction of ratring methodology for banks was introduced by RBI on the lines of: Marks: 2+ 0.5IRAC ALM CAMEL CMA The Correct Answer is : ALM 188. Schedule Banks are required to keep cash researfes with Reserve Bank of India, in terms of: Marks: 2+ 0.5Section 42 (1) of the RBI Act, 1934 Section 24 of the Banking Regulation Act,1934 Section 42 of the Negotiable Instruments Act, 1881 None of the above The Correct Answer is : Section 42 (1) of the RBI Act, 1934 189. The cash reserve requirements for Non-schedule Banks are laid down in: Section 41 (1) of the Reserve Bank of India Act, 1934 Section 41 (1) of the Negotiable Instruments Act, 1881 Section 41 of the Banking Regulsation act, 1881 None of the above The Correct Answer is : Section 41 (1) of the Negotiable Instruments Act, 1881 190. Cash Reserve Ratio is maintained in the form of: Marks: 2+ 0.5Government Securities Balance with Reserve Bank of India Balance with State Bank of India All the above The Correct Answer is : Balance with Reserve Bank of India 191. RBI is empowered to prescribe Cash Reserve Ratio ranging between: Five percent to twenty percent of net demand and time liabilities Three percent to fifteen percent of net demand and time liabilities Three percent to forty percent of net demand and time liabilities None of the above The Correct Answer is : Three percent to fifteen percent of net demand and time liabilities 192. Statutary Liquidity Ratio means: Marks: 2+ 0.5The maximum percentage of demand and time liabilities upto which Bank can extend the advance Maintenance of liquid assets by Banks in the form of cash, gold and unencumbered approved securities equal to not less than 25% of their total demand and time deposite liabilities under the provisions of section 24 of Banking Regulation Act To keep liquid cash None of the above The Correct Answer is : The maximum percentage of demand and time liabilities upto which Bank can extend the advance 193. The reduction in the Statutory Liquidity Ratio by the Reserve Bank of India: Will improve the resource of Banks Will augment the resource of scheduled Commercial banks Will not effect the liquidity position None of the above The Correct Answer is : None of the above 194. Under the powers derived from Section 20, 21 and 21A of the Reserve Bank of India: Marks: 2+ 0.5The Reserve Bank manages the public debt and issues new loans on behalf of he Central and state Government The Reserve Bank provides refinance to NABARD in respect on agriculture advances The reserve Bank regulates flow of credit to the economy by variation in the Statutory Liquidity requirement and Cash Reserve Ratio All the above The Correct Answer is : The Reserve Bank provides refinance to NABARD in respect on agriculture advances 195. In periods of boom, which leads to economic instability Reserve Bank resorts to: Marks: 2+ 0.5Sale first class securities in its precession in the market, to reduce the supply of money as a measure of open market operations Buying of approved securities in the market as a measure of open market operations Like in the bank rate as a measure of open market operations None of the above The Correct Answer is : None of the above 196. The public debts offices function under the control of: Marks: 2+ 0.5Central Government Reserve Bank of India Public Debt Ministry (a) and (b) The Correct Answer is : Reserve Bank of India 197. Which of the following statements, are correct? Marks: 2+ 0.5In India, foreign exchange regulations are administreted by Reserve Bank of India Reserve Bank of India maintains the external value of rupee Reserve Bank of India does not deal in foreign exchange directly with the public All the above The Correct Answer is : Reserve Bank of India does not deal in foreign exchange directly with the public 198. A new department; viz., Department of supervision has been set up by Reserve Bank of India w.e.f. 22.12.1993. The above department has taken over: Marks: 2+ The work relating to the supervision of Commercial Banks from the Departmetn of Banking Operations and Development The supervision work of Ministry of Finance The work of supervision of Development Bank in India The work of supervision of foreign Banks The Correct Answer is : The work of supervision of Development Bank in India 199. RBI has permitted Banks to open, without its prior approval, specialized branches per centre each in the catogary of: Marks: 2+ 0.5Industrial Finance NRI branches Treasury branches All these The Correct Answer is : NRI branches 200. Which of the following guidelines have been issued by Reserve Bank of India based on the recommendation of Narsimham committee in regard to branch licensing policy? Marks: 2+ 0.5Banks may relocate brnches, open specialized branches, spin off business at other locations, set up controlling offices/administrative units and also establish extension counters Banks may close down branches other than in rural areas as well as to swap unremunerative branches or those in remote areas Banks which attain the revised capital adequency norms and p-rudential accounting standards wii be given freedom to set up new brnch offices All the above The Correct Answer is : Banks which attain the revised capital adequency norms and p-rudential accounting standards wii be given freedom to set up new brnch offices 201. Demand liabilities mean: Marks: 2+ 0.5Liabilities which are payable within one year from date of balance sheet Liabilities which must be met on demand Current and savings deposite None of the above The Correct Answer is : Liabilities which must be met on demand 202. As per section 5 (f) of the Banking Regulation Act, 1949, time liabilities mean: Time deposit Liabilities payable after a specified time Liabilities which are not demand liabilities None of the above The Correct Answer is : None of the above 203. Which is the authority in India for effecting changes in the Cash Reserve Ratio and Statutory Liquidity ratio? Marks: 2+ 0.5Government of India Reserve Bank of India Indian Bank's Association CRR and SLR Association The Correct Answer is : Reserve Bank of India 204. Bank rate means: Marks: 2+ 0.5The rt of interest charged by the Bank on advances The rate of interest paid by banks on the deposits The standard rate at which the reserve Bank of India is prepared to buy or rediscount eligible bills of exchange or other commercial papers of commercial banks None of the above The Correct Answer is : None of the above 205. To restrict expansion of credit, the Reserve bank: Marks: 2+ 0.5Raises the Bank rate Reduces the Bank rate Freeze the bank rate None of the above The Correct Answer is : None of the above 206. When Reserve Bank intends to increase credit by the Banking system, it: Reduces the Bank rate Raises the Bank rate Freezes the Bank rate None of the above The Correct Answer is : Reduces the Bank rate 207. Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements as measures of credit control are classified as: Quantitative methods Quantitative methods Weighted avarege methods None of these The Correct Answer is : Weighted avarege methods 208. Which of the following fall under qualitative methods of credit control adopted by Reserve Bank of India? Marks: 2+ 0.5Selective Credit Control Credit authorization scheme Moral suasion All these The Correct Answer is : Selective Credit Control 209. The term 'Moral Suasion' refers to: Marks: 2+ 0.5The Banker's duty of secrecy as regards the affair and accounts of his customers Moral duty of a borrower to deal with only one Bank The advice given by Reserve Bank to Banks/financial institutions in the matte4r of their lending and other operations with the objective that they might implement or follows None of the above The Correct Answer is : None of the above 210. 'Currency of India' refers to: Marks: 2+ 0.5One rupee notes only One rupee notes and coin Bank notes issued by Reserve Bank of India; i.e., Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500 and Rs. 1000 One rupee notes and coins and bank notes issued by reserve Bank of India The Correct Answer is : One rupee notes and coins and bank notes issued by reserve Bank of India 211. Which of the following is the sole authority for issuance of currency in India? Controller of Currency Government of India Reserve Bank of India None of these The Correct Answer is : Controller of Currency 212. The note issue system in India is based on: Marks: 2+ 0.5Gold Deposit System Minimum Reserve System Proportional Reserve System Simple deposit system The Correct Answer is : Minimum Reserve System 213. One rupee note bears the signature of: Marks: 2+ 0.5Secretary, Ministry of finance, Govt. of India Dy. Governer of Reserve Bank of India President of India Vice-president of India The Correct Answer is : Secretary, Ministry of finance, Govt. of India 214. Bank notes are issued under the signature of: Marks: 2+ 0.5Dy. Governor of Reserve Bank of India Governor of Reserve Bank of India Chirman and Managing Director of Reserve Bank of India Any authorized official of RBI The Correct Answer is : Dy. Governor of Reserve Bank of India 215. The currency notes issued by RBI have a cent percent cover in: Marks: 2+ 0.5Approved assets Gold Foreign exchange Trustee securities The Correct Answer is : Approved assets 216. The approved assets which currency notes are issued by RBI, comprise of: Gold coin and bullion and rupee coin Foreign securities and rupee securities of India, of any maturity Bills of exchange and promissory notes payable in India which are eligible for purchase by RBI All the above The Correct Answer is : Foreign securities and rupee securities of India, of any maturity 217. The Board for Financial supervision has been constituted by the Reserve Bank of India under the Reserve Bank of India (Board for Financial supervision) Regulations, 1994 on 16th November 1994. The main objective of Board is: Strengthening supervision and surveillance over the financial system Providing sharper focus to supervisory policy and skills Both of the above None of the above The Correct Answer is : Both of the above 218. The board for Financial supervision has a term of: Marks: 2+ 0.5One year Two years Ten years No time limit The Correct Answer is : One year 219. The board will exercise integrated supervision over: Marks: 2+ 0.5Commercial Banks Financial Institutions Non-Banking Financial Intermediaries and other para-Banking financial institutions All the above The Correct Answer is : All the above 220. RBI has given freedom to Banks to: Marks: 2+ 0.5Convert non-viable rural branches into satellite offices on certain conditions Provide locer facilities at the extension counters Close down loss incurring branches in urban/metro centres and loss incurring branches at rural centres, which are served by two Commercial Bank branches excluding RRBs, after mutual consultation All the above The Correct Answer is : All the above 221. The main thrust of the branch licensing policy is: Marks: 2+ 0.5to provide freedom to Banks to rationalize the structure of their branches to give an apportunity to the Banks to open as many branches as they wish none of the above both (a) and (b) The Correct Answer is : both (a) and (b) 222. For setting up a new private sector Bank: Marks: 2+ 0.5The promotor's contribution shall 25 percent if capital does not exceed Rs. 100 crore and 20 percent if capital exceed of Rs. 100 crore NRI participation in the primary equity of a new Bank shall not exceed 40% The shares of the bank should be listed on stock exchange All of the above The Correct Answer is : All of the above 223. As per guidelines of Reserve Bank of India , a new private sector bank: Shall be subject to prudential norms in regard to income recognition, asset classification and provisioning, capital adequacy etc. Shall have to observe priority sector lending targets as applicable to other domestic Banks Will be required to open rural and semi-urban branches All the above The Correct Answer is : All the above 224. A new private sector Bank: Marks: 2+ 0.5Will be subject to the directive, instructions, guidelines and advices given by the Reserve Bank of India Will be governed by the provisions of RBI Act, 1934; Banking Regulation Act, 1949 and other relevant statutes Would be governed by existing branch licensing policy where by Banks could open branches including at urban/metro centrs without prior approval of RBI once capital adequacy and prudential accounting norms are satisfied All the above The Correct Answer is : All the above 225. As per the guidelines issued by RBI on 3rd January, 2001 : Marks: 2+ 0.5The minimum paid up capital requirement of a newly set up private sector Bank should be at least Rs. 200 crore and the same should be raised to Rs. 300 crore within three years of commencement of business Minimum capital adequacy ratio should be at 10 per cent on continues basis from the commencement of business None of the above Both (a) and (b) The Correct Answer is : Both (a) and (b) 226. The Rights of the shareholders are dealt under the provision: Marks: 2+ 0.5Section 12 (2) Section 87 Section 10 (E) Section 11 The Correct Answer is : Section 12 (2) 227. Voting Right of the shareholders with total Rights of all shareholdersnof a Bank are limited to: Marks: 2+ 0.5One per cent of total Rights Two per cent of total Rights Five percent of total Rights Ten percent of total Rights The Correct Answer is : One per cent of total Rights 228. The intention of provisons of shareholders Rights is: Marks: 2+ 0.5To prevent the shareholders of a Bank from securing control over the management To prevent preferential Rights on the Assets of the company (a) or (b) of the above (a) and (b) both The Correct Answer is : (a) and (b) both 229. Which of the following sections, prohibits a bank from granting any loan (secured or unsecured), to any of its Directors or any other firm or company in which such Director has vested interest? Marks: 2+ 0.5Section 20 Section 12 Section 21 Section 18 The Correct Answer is : Section 20 230. Which of the following are the restrictions on loans and advances under Section 20? Marks: 2+ 0.5No bank shall grant any loans or advances on the security of its own shares No bank will grant any loan or advances to or on behalf of any Director or to an firm in which the Director has vested interest No bank would grant loan to any individual in respect of whom any of its Directors is a partner or guarantor All the above The Correct Answer is : All the above 231. For the purpose of Section 20, which of the following loans and advances are not induced? Marks: 2+ 0.5Loans against government securities Loans against life insurance policies and fixed deposits Loans or advances to agriculture finance corporation All the above The Correct Answer is : All the above 232. What are the provisions of section 27 rgarding submission of returns to RBI? A bank has to submit monthly statement of Assets and Liabilities in India on the last Friday of every month to Reserve Bank A half yearly statements of investment and classification of advances to be submitted to RBI Reserve Bank may call for any information or statements relating to the business or affairs of a Bank All the above The Correct Answer is : All the above 233. Which of the following statements, is correct regarding submission of Returns to RBI? Marks: 2+ 0.5Every Regional Rural Bank (RRB) will submit a copy of the return so submitte to RBI to NABARD also NABARD may exercise powers of RBI in relation to RBIs The RBI may call any Return either through notice or on oral instructions All the above The Correct Answer is : All the above 234. What are the powers of Central government in case of cancellation of license of a Bank by the RBI? Marks: 2+ 0.5Central government may permit amalgamation of two or more Banks with the consultation of Reserve Bank Central government may make an order of moratorium for maximum period of 6 months subject to an application by the RBI c. It has powers to sanction the scheme of re-construction prepared by Reserve bank All the above The Correct Answer is : All the above 235. Which of the following are the provisions regarding Accounts and Balance sheet? Marks: 2+ 0.5Every Bank has to prepare a Balance Sheet and profit & Loss Account on the last working day of year or period decided by the RBI The accounts of a Bank are drawn in conformity with forms A and B of the Third schedule of Banking Regulation Act, 1949. All Banks are required to prepare Balance sheet on the same day and date All the above The Correct Answer is : All the above 236. Which of the following is relevant for credit of Balance sheet? Marks: 2+ 0.5As per section 29 Balance Sheet and profit & Loss Account need to be audited by a qualified auditor RBI's approval is necessary before appointment of an auditor RBI may direct a Bank for special audit All the above The Correct Answer is : All the above 237. What are the important matters an auditor should mention in the report? Information and explanation required is satisfactory Transactions conducted by a Bank are within the powers of the bank The returns submitted by the Bank or its branches have been found adequate for the purpose of audit All the above The Correct Answer is : All the above 238. Which of the following is not the part of audit Report of a Bank? Marks: 2+ 0.5The profit & Loss account shows a true balances Disclosure of provisoin norms adopted by a Bank Any other information necessary and should be brought to the notice of shareholders Interest Rates on deposits and advances The Correct Answer is : Interest Rates on deposits and advances 239. The profit & Loss Account and Balance sheet shall be signed by: Marks: 1+ 0.25Chairman and Managing Director and Executive Director A minimum of 3 directors In case the Banking Company incorporated outside India by the Manager or Agent of the principal office of the company All the above The Correct Answer is : All the above 240. Which of the following norms are applicable for display of audited Balance Sheet of a Bank? Marks: 2+ 0.5The audited Balance should be published in the National Newspaper Capital of audited Balance sheet be made available to all the shareholders It should be display in the Banks Head officwe and all other branches and offices All the above The Correct Answer is : All the above 241. What are the powers of Reserve Bank of India for conducting scrutiny of a Bank? Marks: 2+ 0.5The RBI is empowered to conduct scrutiny of affairs of a Bank in addition to regular inspection The scrutiny officer has the same powers as the inspecting officer of RBI A copy of the scrutiny report would be produced to the Bank All the above The Correct Answer is : All the above 242. To whom a Bank is required to submit audited copies of Balance sheet? 3 copies to RBI 3 copies to Registrar of Companies Annual general Body Meeting All the above The Correct Answer is : All the above 243. What is the maximum time limit for publishing a bank balance sheet in the newspaper? Marks: 2+ 0.5Within 2 months from the date of balance sheet Within 6 months from the date of balance sheet Within 3 months from the date of balance sheet No such time limit The Correct Answer is : Within 6 months from the date of balance sheet 244. Which of the following is not a condition for payment of dividend? Marks: 2+ The capitalized expenses have been completely written off Adequqte provisions have been made for bad debts Interest due on loans and advances has been recovered Adequate provision has been made for depreciation in the value of investments The Correct Answer is : Interest due on loans and advances has been recovered 245. What is the maximum time limit when dividends can be paid from the date of declaration? Marks: 2+ 0.530 days 42 days 60 days 75 days The Correct Answer is : 42 days 246. What does a moratorium signifies in case of a Banking company? Marks: 2+ 0.5Suspension of business is called moratorium It can be done for a maximum period of 6 months High court is the authority All the above The Correct Answer is : All the above 247. What are the circumstances for winding up of a Banking company? Marks: 2+ The bank is unable to pay its debt If Reserve bank applies to high court If Reserve bank feels that affairs of the aBank are not in the invest of the public All the above The Correct Answer is : All the above 248. Under what circumstances a Bank is deemed to be unable to pay its debts? It has refused to meet any lawful demand The time limit for meeting demand is 2 days. The reserve bank certifies that the bank is unable to pay its dept. All the above. The Correct Answer is : All the above. 249. Under what condition the reserve the reserve bank may for winding up of a bank? Marks: 2+ 0.5If bank fail to comply with the minimum paid up capital requirement. If the bank has been prohibited from receiving fresh deposits. The bank does not fulfil the requirements of the Act. All the above. The Correct Answer is : All the above. 250. what is the role of official liquidator of a bank? Marks: 2+ 0.5To submit preliminary report to the high court within 2 months from the date of winding up order. To give a notice to preferential claimants and secured and unsecured creditors within 15 days of winding up order. Every depositor is deemed to have filed the claim. All the above. The Correct Answer is : All the above. 251. Which of the following statements, is correct regarding winding up of bank? After making adequate provision for preferential payments the liquidator shall pay a minimum of Rs. 250 of his credit balance whichever is less witin 3 months The remaining assets will be utilized for paymnt of dept on pro rat abasis. A bank can not be voluntarily wound up, All the above. The Correct Answer is : All the above. 252. Which of the following sections deal with the amalgamation o a bank? Section 44 A. Section 10. Section 35. Section45. The Correct Answer is : Section 44 A. 253. What is the process of amalgamation? Marks: 2+ 0.5It has to be approved by majority of shareholders representing 2/3 shareholders. The RBI has to sanction the scheme After approval of RBI assets and liabilities are transferred to acquiring bank . All the above . The Correct Answer is : All the above . 254. Which of the following statements, is correct regarding acquiring of a banking company by the central bank? Marks: 2+ 0.5Banking regulation Act (as amended) empowers Central government to acquire a Banking company. It can do so after receiving a report from the RBI. It can also acquire Banking Company for better provision of credit. All the above. The Correct Answer is : All the above.