...

Banking And Finance BA ECONOMICS UNIVERSITY OF CALICUT

by user

on
Category: Documents
4

views

Report

Comments

Transcript

Banking And Finance BA ECONOMICS UNIVERSITY OF CALICUT
School of Distance Education
UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION
BA ECONOMICS
(2011 Admission Onwards)
VI Semester
Additional Course (In lieu of Project)
Banking And Finance
QUESTION BANK
1.
2.
3.
4.
5.
The definition of ‘banking is given in
(a) Negotiable Instruments Act 1981
(b) RBI Act 1934
Presently the public sector banks in India
(a) 6
(b) 19
(c) Banking Regulation Act 1949
(d) Contract Act
(c) 20
(d) 26
Which of the following banks are not commercial banks
(a) Foreign banks
(c) Private banks
(b) State cooperative banks
(d) Regional Rural Banks
Under which of the following methods of note issue, RBI issues currency notes
(a) Fixed fiduciary system
(c) Maximum fiduciary system
(b) Minimum reserve system
(d) Proportional reserve system
Lead bank scheme was introduced in
(a) 1965
(b) 1969
Banking and Finance
(c) 1981
(d) 1992
Page 1
6.
7.
8.
9.
School of Distance Education
A rise in reserve ratio of banks will lead to
(a) An increase in money supply
(b) Proportionate increase in money supply
SLR stands for
(a) Single lens route
(b) Statutory Liquidity Ratio
(c) Decrease in money supply
(d) None of these
(c) Statutory Liability Ratio
(d) None of these
Which of the following categories the payment can be stopped
(a) Gift cheques
(c) Bill of exchange
(b) Cheques
(d) Promissory notes
Which of the following are legal tender
(a) Currency notes
(b) Draft
10.
CRR is required to maintain in the form of
(a) Cash with RBI
(b) Cash with bank
(e)
(c) Cheques
(d) Pro note
(c) Approved govt. securities
(d) All the above
11.
The validity of a cheque is ………… months from the date of cheque
(a) 3 months
(c) 1 month
(b) 6 months
(d) 12 months
12.
Gilt edged securities are
(a) Shares of private limited company
(b) First class govt. securities
(c) Shares of a company
(d) None of the above
13.
Currency notes deposited at currency chest are the property of
(a) SBI
(c) Respective Bank who made deposit
(b) RBI
(d) Government
14.
When a bankers name is written on a cheques instead of two parallel lines, it is a
(a) General crossing
(c) Special crossing
(b) No crossing
(d) Payable to bearer
15.
Which of the following is a borrowing facility
(a) Term finance
(b) Performance guarantee
16.
Selective credit control covers
(a) Margin
(b) Interest
Banking and Finance
(c) Bills received under letter of credit
(d) All the above
(c) Level of credit
(d) All the above
Page 2
School of Distance Education
17.
Pledge of advance is made against
(a) Gold
(b) Commodities
(c) Coins and Notes
(d) All the above
18.
Cash credit account is closed on the death of
(a) Agent
(b) Principal
(c) Managing Director
(d) None of the above
19.
Which bank does not belongs to state bank group
(a) State bank of Bikaner and Jaipur
(c) State bank of Patiala
(b) State bank of Travancore
(d) State bank of Banaras
20.
(a)
(b)
(c)
(d)
The power of banks to create credit depends on
Deposit available with them and safe ratio
Safe ratio only
Deposit available with them only
None of the above
21.
Largest nationalized bank of India is
(a) Central bank of India
(b) State bank of India
(c) Reserve Bank of India
(d) None the above
22.
Difference between market value of security and loan amount is known as
(a) Collateral value
(c) Margin
(b) Security value
(d) All the above
23.
Bank rate policy as a weapon of credit control has emerged from the central bank’s function
as
(a) Bank of note issue
(c) Bankers’ bank
(b) Lender of last resort
(d) All the above
24.
Discount rate on certificate of deposits is decided by
(a) RBI
(c) SBI
(b) IBA
(d) None the above
25.
The central bank of India is
(a) Central bank of India
(b) Reserve bank of India
(c) Federal Bank of India
(d) None the above
26.
Minimum age to open a SB account in own name is
(a) 10
(b) 18
(c) 21
27.
DFHI started its business in
(a) 1975
(b) 1988
Banking and Finance
(d) 15
(c) 1991
(d) 1999
Page 3
School of Distance Education
28.
The main objective of EXIM Bank is to promote
(a) Saving habit among public
(b) Foreign trade
(c) Small scale industries
(d) None the above
29.
DFHI was established for creating secondary market in
(a) Govt. securities
(c) money market instruments
(b) Capital market instruments
(d) all the above
30.
The Main difference between capital market and money market is with regard to
(a) Type of securities
(c) Value of securities
(b) Maturity period of securities
(d) None the above
31.
Replica of a bank account kept with customer is known as
(a) Book of account
(c) Ledger account
(b) Pass book
(d) None the above
32.
Insurance of bank deposit is done by
(a) Oriental insurance
(b) Reserve bank of India
(c) DICGC
(d) None the above
33. A set of institutions, instruments and markets which encourage savings and
channelise them for productive purposes
(a) Stock Exchange
(b) Financial market
(c) Financial System
(d) Derivative market.
34. The market where the securities are issued for the first time is called
(a) Primary market
(c) Tertiary market
(b) Secondary Market
(d) Bond market
35. …………………….. is a share in the share capital of a Company.
(a) Share
(c) Bond
(b) Debenture
(d) Capital.
36. Preferential shares have preferential right for …………….
(a) Payment of dividend
(c) Both of these
(b) Repayment of Capital
(d) None of these
37. ................ is an acknowledgement of the debt of the Company.
(a) Share
(d) Debentures
(b) Preference shares
(d) None of these
38. The maximum allowable underwriting commission for shares
(a) 2.5%
(c) 7.5%
(b) 5%
(d) 10%
Banking and Finance
Page 4
School of Distance Education
39. The supplementary public issue made by a company once it is listed and established on a stock
exchange is called
(a) IPO
(c) Bonus issue
(b) FPO
(d) Right issue
40. The process of generating and recording investor demand for shares during their
issuance process, in order to support efficient price discovery.
(a) Merchant Banking
(c) Private placement
(b) Stock Broking
(d) Book Building
41. Payment of dividend in the form of fully paid shares are called
(a) Right issue
(b) Bonus issue
(c) Preferential issue
(d) None of these
holding is called
(a) Bonus issue
(b) Right issue
(c) Private placement
(d) None of these
42. Issue of shares to the existing shareholders of a company in proportion to their
43. A stock issue to the specified employees of a company as an option scheme is called
(a) ESOS
(c) Right issue
(b) Deferred Issue
(d) Option placement
44. The process of converting the physical form of shares into electronic form is called
(a) Materialisation
(b) Dematerialisation
(c) Rematerialisation
(d) ESOP
45. …………………… is an organisation which holds securities in electronic format at the request of
the investor
(a) Depository
(c) Merchant Banker
(b) Stock Broker
(d) Clearing House
46. Anybody of individuals whether incorporated or not, constituted for the purpose of
assisting, regulating or controlling the business of buying, selling of securities.
(a) Sock Broker
(c) Secondary market
(b) Merchant Banker
(d) Book runner
47. Bombay Stock Exchange was established in the year
(a) 1785
(c) 1895
(b) 1875
(d) 1895
48. Which of the following is a stock index of the Bombay Stock exchange
(a) Nifty
(c) NASDAQ
(b) DJIA
(d) Sensex
Banking and Finance
Page 5
School of Distance Education
49. CNX Nifty is a stock market index of ………………… companies
(a) 30
(c) 50
(b) 40
(d) 75
50. The base year of SENSEX
(a) 1978-79
(b) 1979-80
(c) 1995
(d) 1996
51. An investor or investment fund that is established or registered in a foreign country
and investing in the financial markets of India
(a) DII
(b) FII
(c) Both of these
(d) None of these
52. Securities and Exchange Board of India (SEBI) had become a statutory body by passing SEBI
act in the year
(a) 1988
(c) 1992
(b) 1990
(d) 1998
53. Market for short term financial assets is known as
a) Money market
c) Financial market
b) Capital market
d) None of these
54. A money market instrument with maturity of more than one day but not exceeding 14 days is
known as
a) Call money
c) Notice money
b) Term money
d) None of these
55. Interest rate in call money market is decided by
a) RBI
c) Govt. of India
b) SBI
d) None of these
56. Treasury bills are issued in multiples of ……
a) Rs.10,000
b) Rs.25,000
c) Rs.50,000
d) Rs.100,000
57. Ad hoc treasury bills are issued by RBI on behalf of
a) Govt. of India
c) Commercial banks
b) State Govt.
d) RBI
58. On the basis of its maturity, treasury bills are classified into
a) 2
b) 3
c) 4
59. Certificate of
Deposit is issued by
a) RBI
b) Financial institutions
Banking and Finance
d) 5
c) Companies
d) Govt. of India
Page 6
School of Distance Education
60. Certificate of Deposits is issued in multiples of
a) Rs.10,000
b) Rs.25,000
61. Commercial Papers are issued by
a) Banks
b) RBI
c) Rs.50,000
d) Rs.100,000
c) Govt. of India
d) Joint Stock Companies
62. Commercial Papers are issued in multiples of …
a) Rs.25,000
c) Rs.100,000
b) Rs.50,000
d) Rs.500,000
63. Repo Rate is
a) Lending rate of banks to RBI
b) Lending rate of RBI to banks
c) Lending rate of RBI to public
d) None of these
64. Maximum period for which domestic fixed deposits are accepted by Indian banks is
a) 5 years
c) 10 years
b) 7 years
d) 15 years
65. Which of the following is not a negotiable instrument
a) Cheque
c) Fixed deposit receipt
b) Bill of exchange
d) Promissory note
66.
a)
b)
c)
d)
Power of attorney refers to
An authority to operate a bank account
Power of a person
An instrument by which a person is empowered to act for another person
All the above
67. The latest recovery channel made available to bank to recover NPA is
a) SARFAESI Act
c) RBI Act
b) Banking Regulation Act
d) Right to Information Act
68. Which of the following card product launched by the banks is working on the principle of ‘Buy
Now Pay Later’?
a) Credit Card
c) Master Card
b) Debit Card
d) ATM Card
69. When bank returns cheque unpaid, it is called
a) Blank cheque
b) Dishonor of cheque
c) Mutilated cheque
d) Bearer cheque
70. Which of the following carries out Open Market Operation
a) Bombay Stock Exchange
c) Reserve Bank of India
b) National Stock Exchange
d) Securities Exchange Board of India
Banking and Finance
Page 7
School of Distance Education
71. Federal Reserve is central bank of
a) India
b) Pakistan
72. Rate of interest on term deposit is fixed by
a) RBI
b) SBI
73. Financial year in banks is period between
a) January to December
b) March to April
74. RBI was natinalised in the year
a) 1947
b) 1948
c) UK
d) US
c) Govt.
d) Banks themselves
c) April to March
d) July to June
c) 1949
d) 1950
75. The Indian bank with highest number of branches operated in foreign country is
a) State Bank of India
c) Bank of India
b) Bank of Baroda
d) Central Bank of India
76. The latest public sector bank in India is
a) Federal bank
b) State Bank of Travancore
c) ICICI Bank
d) IDBI Bank
78. The present governor of RBI is
a) D Subbarao
b) Raghuram Rajan
c) CD Deshmukh
d) Bimal Jalan
80. The head quarters of RBI is situated at
a) Mumbai
b) Chennai
c) New Delhi
d) Culcutta
77. The first nationalization of banks in India was in the year
a) 1948
c) 1969
b) 1950
d) 1975
79. Which is the largest private sector bank in India
a) HDFC bank
c) AXIS bank
b) IDBI bank
d) ICICI bank
Banking and Finance
Page 8
School of Distance Education
ANSWER KEY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Banking Regulation Act 1949
26
State cooperative banks
Minimum reserve system
1969
Decrease in money supply
Statutory Liquidity Ratio
Cheques
Currency notes
Cash with RBI
3 months
First class govt. securities
RBI
Special crossing
Term finance
All the above
Commodities
Agent
State bank of Banaras
Deposit available with them and safe
ratio
State bank of India
Margin
Lender of last resort
None the above
Reserve bank of India
10
1988
Foreign trade
money market instruments
Maturity period of securities
Pass book
DICGC
Financial System
Primary market
Share
Both of these
Debentures
5%
FPO
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40. Book Building
Banking and Finance
41. Bonus issue
42. Right issue
43. ESOS
44. Dematerialisation
45. Depository
46. Secondary market
47.
48.
49.
50.
1875
Sensex
50
1978-79
51. FII
©
Reserved
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
1992
Money market
Notice money
None of these
Rs.25,000
RBI
3
Financial institutions
Rs.100,000
Joint Stock Companies
Rs.500,000
Lending rate of RBI to banks
10 years
Fixed deposit receipt
All the above
SARFAESI Act
Credit Card
Dishonor of cheque
Reserve Bank of India
US
Banks themselves
April to March
1949
Bank of Baroda
IDBI Bank
1969
Raghuram Rajan
ICICI bank
Mumbai
Page 9
Fly UP