- Which is the legal framework governing the Regional Rural Banks (RRBs)
A. Regional Rural Banks Act, 1976
B. Regional Rural Banks Act, 1966
C. Small Industries Development Bank of India, 1989
D. Banking Regulation Act, 1949
E. Indian Partnership Act, 1932
Choose the correct answer from the options given below:
(a) A and D only
(b) B and D only
(c) A and C only
(d) B and E only - Which are correct regulatory provisions for foreign bank operations in India?
A. They are incorporated in India and have their head office in foreign country.
B. Foreign banks since 2002 have been allowed to set up their subsidiaries in India.
C. Foreign banks are allowed to operate in India even if they are not financially sound.
D. They have to operate according to banking regulations in India.
E. RBI approved that foreign banks which are present in India could open their branches.
Choose the correct answer from the options given below:
(a) A, C, E only
(b) A, B, C only
(c) B, D, E only
(d) C, D, E only - Which of the following are considered as off balance sheet activities of a commercial bank?
A. Lending money to a depositor
B. Borrowing from RBI
C. Purchasing a future contract
D. Issuing letter of credit
E. Engaging in Swap Contract
Choose the correct answer from the options given below:
(a) A, E, D only
(b) B, C, E only
(c) E, D, C only
(d) A, D, E only - Universal bank that function as investment bank in India are regulated by:
(a) SEBI
(b) RBI
(c) Ministry of Finance
(d) IRDA - Consider the following statements :
(i) A Commercial Bank is a type of financial intermediary because it mediates the savers and the Borrows
(ii) Investment Banks assist companies in raising funds in capital market (both Equity and Debt)
(iii) Investment Bank is also known as Merchant Bank
Choose one of the following correct answer :
(a) All of the above are correct
(b) Only (ii) is correct
(c) Only (i) and (iii) are correct
(d) None of the above is correct - The unit banking system is prevalent in
(a) Canada
(b) Great Britain
(c) USA
(d) India - Regional Rural Banks are designed to work in which of the following ideals?
(a) Work on innovative and adaptive ideals
(b) Help the targeted groups
(c) Keep lending rates lower than cooperative institutions
(d) Work on basics of commercial banks - Which of the following is not an approach to the structure of Indian Financial system?
(A) A brokerage can be either full service or discount
(B) The financial system is concerned about money, credit and finance, the three terms are intimately related yet are some what different from each other
(C) Housing finance simply refers to providing finance for venture capital
(D) Financial instruments may also divided according to asset class, which depends on whether they are debt based or equity based
Choose the most appropriate answer from the options given below:
(a) (A), (C) and (D) only
(b) (B) and (D) only
(c) (C) only
(d) (A) and (C) only - Retail banking means
(a) Credit facilities extended to retail traders
(b) Providing personal banking services directly to the consumers
(c) Allowing overdrafts on current account
(d) Creating, maintaining and enhancing strong relationship with customers. - Match the items of List – I with List – II:
List – I
A. Foreign Bank
B. Public Sector Bank
C. Private Sector Bank
D. Regional Rural Bank
List – II
i. Catholic Syrian Bank
ii. Sonali Bank
iii. IDBI Bank
iv. Pallavan Grama Bank
Codes:
A. B. C. D.
(a) i iii ii iv
(b) ii iii i iv
(c) i iv iii ii
(d) i ii iii iv - Match the item of List I with the item of List II and suggest the correct code
List I
A. Relationship
B. Merchant banking
C. Indigenous banking
D. Development banking
List II
i. Dealing in hundis and acceptance of deposits
ii. Widening the enterpreurial base and assist in a rapid rate of industrial growth
iii. Engaged in the business of capital issue management
iv. Creating maintaining and enhancing strong relationship with customers
(a) A-iv, B-ii, C-i, D-iii
(b) A-ii, B-iii, C-i, D-iv
(c) A-iv, B-iii, C-i, D-ii
(d) A-ii , B-i, C-iv, D-iii - Arrange the following SBI-sponsored RRBs in an increasing order of their existence since formation.
A. Rajasthan Marudhara Gramin Bank
B. Telangana Gramin Bank
C. Saurashtra Gramin Bank
D. Madhyanchal Gramin Bank
E. Arunachal Pradesh Rural Bank
Choose the correct answer from the options given below:
(a) A, D, B, E, C .
(b) C, E, D, A, B
(c) B, A, C, E, D
(d) D, E, A, B, C - Which one of the following subsidiary is not owned by the Reserve Bank of India?
(a) National Housing Bank (NHB)
(b) Industrial Development Finance Corporation (IDFC)
(c) National Bank for Agriculture and Rural Development (NABARD)
(d) Deposit Insurance and Credit Guarantee Corporation of India (DICGC) - Given below are two statements :
Statement I: Repo rate is the rate of interest at which Commercial Banks borrow the funds from RBI.
Statement II: Reverse Repo rate is the rate of interest that commercial banks get when they lend funds to RBI.
In the light of the above statements, choose the most appropriate answer from the options given below :
(a) Both Statement I and Statement II are correct
(b) Both Statement I and Statement II incorrect
(c) Statement I is correct but Statement II is incorrect
(d) Statement I is incorrect but Statement II is correct - During the depression, it is advisable to:
(a) Lower Bank Rate and purchase securities in the market
(b) Increase Bank Rate and purchase securities in the open market
(c) Decrease Bank Rate and sell securities in the open market
(d) Increase Bank Rate and sell securities in the open market - Given blow are two statements:
Statement I : Monetary policy on its own cannot influence economic growth but can only support it by creating congenial factors
Statement II : Monetary policy rates change get transmitted across the markets and eventually get reflected in lending rates, mortgage rates and yield. Hence monetary policy can address the current inflation
In the light of the above statement. Choose the most appropriate answer from the options given below
(a) Both statement I and Statement II are true
(b) Both statement I and Statement II are false
(c) Statement I is true but Statement II is false
(d) Statement II is true but Statement I false - Why do Central banks intervene to effect exchange rates?
(A) To influence domestic production
(B) To influence trade flows
(C) To influence domestic markets
(D) To inject liquidity in domestic markets
(E) To smoothen fluctuations in exchange rates.
Choose the most appropriate answer from the options given blow:
(a) (A), (B) and (C) only
(b) (C), (D) and (E) only
(c) (B), (C) and (D) only
(d) (A), (B) and (E) only - The rate at which Bank parks its short-term excess liquidity with RBI is called
(a) Bank Rate
(b) Reserve Bank Rate
(c) Repo Rate
(d) Reserve Repo Rate - In order to control inflation and ensure stability in money market:
(a) The RBI works under the direction of ministry of finance, government of India.
(b) The RBI acts independently and can refuse the government directive
(c) The RBI acts under the board of directors.
(d) The RBI’s board of governors shall abide by the government directive - Which one is NOT true regarding the Market Stabilization Scheme (MSS)?
(a) It absorbs surplus liquidity of enduring nature arising out of large capital flows
(b) It absorbs surplus liquidity through sale of short-dated government securities and treasury bills
(c) Mobilised surplus liquidity is held in the MSS account with the Reserve Bank of India
(d) MSS account liquidity can be used for normal government expenditure of capital nature - Identify the quantitative credit control methods among the following:
(i) Bank Rate
(ii) Credit Rationing
(iii) Open market Operations
(iv) Variable Reserve Ratio
(v) Selective Credit control
(vi) Liquidity Ratio
Codes:
(a) (i), (ii), (iii) and (iv)
(b) (ii), (iii), (iv) and (v)
(c) (i), (ii), (v) and (vi)
(d) (i), (iii), (iv) and (vi) - In order to control credit and investment, the Central Bank of a country should
(a) Sell securities in the open market and hike Cash Reserve Ratio
(b) Buy Securities from the open market and lower the Cash Reserve Ratio
(c) Buy securities from the open market and hike the Cash Reserve ratio
(d) Sell securities in the open market and lower the Cash Reserve Ratio - Match the item of list I with list II
List I ( Type of Bank) List II (Minimum paid-up capital required)
(A) Universal banks
(B) Small Finance Banks
(C) Payment Banks
(D) NBFC – Micro Finance Institution
I 1000 Crores
II 100 Crore
III 400 Crores
IV 300 Crore
V. 200 Crore
VI. 5 Crore
(a) A-I, B-IV, C-III, D-VI (b) A-I, B-IV, C-II, D-VI
(c) A-IV, B-II, C-III, D-I (d) A-I, B-II, C-III, D-VI - For ongoing maintenance of regulatory capital, which of the following risks were covered by pillar-I Minimum Capital Requirement?
(A) Credit Risk
(B) Financial Risk
(C) Operation Risk
(D) Market Risk
(E) Reputation Risk
Choose the correct answer form the options given below:
(a) A, B and C only
(b) A, B and D only
(c) B, C and D only
(d) A, C and D only - Which of the following statement(s) are correct?
(A) Asset liability management is a mechanism to address the risk arising due to mismatch of assets and liabilities
(B) Non-performing Assets (NPA) must be written off as loss in the financial year in which NPA has been identified
(C) Undisclosed reserves are included in capital of banks (Tier II) if they represent accumulation of post-tax profits
(D) Bank cannot accept deposits from the public for a period exceeding five years
(E) Hybrid debt capital instruments may be included in Tier II capital
Choose the correct answer from the options given below:
(a) A, C, D only
(b) C, D, E only
(c) B, C, D only
(d) A, C, E only - Risk management process follows the following steps in which logical sequence?
(A) Selection of appropriate risk model for analysis
(B) Identification of risk variable
(C) Determination of frequency and severity of risk
(D) Feedback on the risk management process
(E) Application of a suitable risk instrument
Choose the correct answer from the options given blow:
(a) E, A, B, C, D
(b) C, B, A, D, E
(c) B, C, A, E, D .
(d) A, B, C, D, E - Which are the RBI notified domestic accredited credit rating agencies?
A. Brickwork ratings
B. Acvite ratings
C. CRISIL ratings
D. Standard and Poor’s
E. Moody’s
Choose the correct answer from the options given below:
(a) B and C only
(b) D and C only
(c) A and C only
(d) C and E only - Sequence the following steps in the operational functioning of the Asset reconstruction companies (as per SARFAESI Act 2002)
A. Charge a 2 percent management fee
B. Issue security receipts to bank
C. Make payment to bank
D. Buys loans of bank at a discount
E. Carry out the recovery
Choose the correct answer from the options given below:
(a) D, C, A, E, B
(b) D, B, E, A, C
(c) D, B, C, E, A
(d) D, A, B, E, C - Match List I with List II
List I – Description
(A) Net Stable Funding Ratio
(B) Innovative Perpetual Debt Instrument
(C) Time Maturity Gap
(D) Risk Weighted Assets
List II – Conceptualization
(I) Asset Liability Management
(II) Tier – I capital
(III) Tier – II capital
(IV) Basel – III norms
Choose the correct answer from the options given blow:
(a) (A)-(IV), (B)-(II), (C)-(I), (D)-(III)
(b) (A)-(I), (B)-(IV), (C)-(III), (D)-(II)
(c) (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
(d) (A)-(IV), (B)-(III), (C)-(II), (D)-(I) - Match the items in List-I with the items in List-II and choose the correct answer from the code given below
List-I
(A) NPA
(B) SLR
(C) Repo Rate
(D) CRR
List-II
(i) The percentage of deposits to be kept with RBI in the form of Cash
(ii) The rate at which RBI lends money to commercial Banks
(iii) Loans and advance not paid for more than 90 days
(iv) The percentage of net demand and time liabilities to be kept in the form of liquid assets
Codes:
(a) (A)-(iii), (B)-(iv), (C)-(i), (D)-(ii)
(b) (A)-(ii), (B)-(iii), (C)-(iv), (D)-(i)
(c) (A)-(iii), (B)-(iv), (C)-(ii), (D)-(i)
(d) (A)-(iii), (B)-(ii), (C)-(iv), (D)-(i) - Assertion (A): “Banks globally are facing more challenges now, and Macro sustainability is a necessity but not sufficient for sustainable economic growth.”
Reason (R): “Putting regulations in place is only one part and their implementation is equally important for achieving growth and sustainability.”
Codes:
(a) (A) and (R) both are true and (R) is correct explanation of (A).
(b) (A) and (R) both are true but (R) is not the correct explanation of (A).
(c) (A) is true and (R) is false.
(d) (A) is false and (R) is true. - Banking ombudsman may reject the complaint
(a) Immediately after receipt
(b) After hearing both parties
(c) At any stage
(d) None of the above - Match the items of List – I with List – II with regard to the BASEL III norms and select the correct code:
List – I
a. The Debt Recovery Tribunals (DRTs)
b. Credit Information Bureau
c. SARFAESI Act
d. Corporate Debt Restructuring
List – II
i. 2002
ii. 1993
iii. 2001
iv 2000
Codes:
a b c d
(a) i ii iii iv
(b) iv iii ii i
(c) iii i vi ii
(d) ii iv i iii - Tier II Capital include:
(i) Authorized Capital (ordinary shares), statutory reserves all other free reserves (disclosed), if any
(ii) Perpetual Non-Cumulative Preferences Shares (PNCPS)
(iii) Debt capital instruments
(iv) Perpetual Cumulative Preference Shares (PCPS)
Codes:
(a) (i) and (ii) only
(b) (iii) and (iv) only
(c) (i) and (iii) only
(d) (ii) and (iv) only - As per Basel II Framework the Total of Tier 2 Capital is permitted up-to a maximum of:
(a) 100 per cent of Tier 1 Capital
(b) 250 per cent of Tier 1 Capital
(c) 80 per cent of Tier 1 Capital
(d) 50 per cent of Tier 1 and Tier 3 Capital - Which among the following is true about BASEL?
(i) Initially it was named as Committee of Banking Regulations and Supervisory Practices (CBRS)
(ii) BASEL was established by the Central Bank Governors of ten countries.
(iii) It was established by the end of 1996
(iv) Disturbances in international currency and banking markets were responsible for its establishment
Codes:
(a) (i) and (ii) only
(b) (ii) and (iii) only
(c) (iii) and (iv) only
(d) (i) (ii) and (iv) only - Which of the following is INCORRECT about ways, the RBI can affect the structure of interest rates?
A. By changing the treasury bill rate
B. Blending of leading and trading activities
C. By changing the Bank rate
D. Fixing the maximum interest on time deposits with the bank
E. Ineffective tapping and mobilization of savings
Choose the correct answer from the options given below:
(a) A and D only,
(b) A, C, D and E only,
(c) B and E only,
(d) D and E only, - The coexistence and cooperation between the formal and informal financial sector is commonly referred to as:
(a) Flexibility of operation
(b) Financial dualism
(c) Well regulated financial system
(d) Catering the financial needs of modern economy - Which of the following are included under representation functions of a bank?
(i) Payment of cheques and bills
(ii) Providing remittance facilities
(iii) Underwriting of securities
(iv) Advancing clean credit
(v) Allowing overdrafts on current account
(vi) Purchase and sale of securities
Codes :
(a) (i), (ii), (iii) and (iv)
(b) (iii), (iv), (v) and (vi)
(c) (i), (ii), (iii) and (vi)
(d) (ii), (iii), (iv), and (vi) - What do you mean by para banking services?
(a) Eligible financial services rendered by banks.
(b) Utility services provided by bank.
(c) Services provided through business correspondent.
(d) Services provided to the armed forces personnel. - Italian money lenders were known as Banechi or Banacheri because
(a) They had a lot of money
(b) They had a money bank
(c) They kept a special type of table to transact their business
(d) All of the above - Which of the following statement is correct?
(a) Banks can accept both demand and time deposits from Public
(b) Banks can accept only demand deposits from Public
(c) Banks can accept only deposits from Public
(d) Banks can accept demand and time deposits only from government - Match the items of List – I with List – II:
List – I
A. Foreign Bank
B. Public Sector Bank
C. Private Sector Bank
D. Payment Bank
List – II
i. Jio Payment Bank Ltd.
ii. HSBC Bank
iii. Punjab & Sindh Bank
iv. Federal Bank
Codes:
A B C D
(a) i iii ii iv
(b) ii iii iv i
(c) i iv iii ii
(d) i ii iii iv - An account operated by a banker where it is possible for a customer to deposit foreign currency is known as
(a) Current Account
(b) Saving Account
(c) Resident Foreign Currency Account
(d) Foreign Currency Account - Which of the following bank is the first universal bank established in the country:
(a) SBI
(b) PNB
(c) ICICI Bank Limited
(d) None of these
Read the given passage and answer the questions that follow :
The Monetary Policy Committee of the RBI should neither rise policy rates nor wind up its accommodative policy stance. Yes, inflation has been on the rise, and growth has been setting in. This is the time to consolidate growth, not to be spooked by transient, supply-constrained inflation. Choking off supply-side price shocks is self – defeating. Higher prices will curb demand and stimulate additional supplies, if the prices are allowed to work their way through the system, instead of being choked of through demand suppression. It is only the second-order effect of price shocks in energy, logistics and labour that call for curtailment of demand via higher interest rates
Far from their being any sign of excess demand, the latest available national income figures suggest squeezed consumption and constrained investment. GDP this fiscal would struggle to recover the size attained at the end of 2019-20. The policy response appropriate for inflation caused by excess demand would be wholly unsuited for inflation caused by supply disruptions and a spike in energy prices. The right way to combat elevated inflation right now is to reduce the burden of taxes that energy bears in India. Both the Centre and the states should share the tax cuts. They should take this action, even as they strive to find common ground on bringing energy under the goods and services tax. The government also has the cushion of relatively high import duties that can be pared, to lower prices. Stepping up production to increase supplies is another part of supply-constrained inflation.
There are measures the RBI can take to increase access to credit by micro, small and medium enterprises, other than enhancing liquidity in general in the hope that some would find its way to the small sector. The RBI can do its bit to realise the government mandate for all large companies to purchase their inputs from the Trade Receivables Discounting System (TReDS), for example, if that improves trade finance significantly, Some reduction in liquidity would not matter.
- Which one of the following is most desirable to consolidate growth?
(a) Reduce interest rate
(b) Increase interest rate
(c) Suppression of demand
(d) Stimulate additional supply - Which one of the following statements is not true?
(a) Both the Centre and the States should share the tax cuts equally
(b) GDP this fiscal would find it difficult to recover the size attained at the end of 2019-20
(c) Curtailment of demand via higher interest rates can be used in a limited way
(d) Choking of supply-side price shocks will affect growth adversely - Which one of the following is the cause of inflation as per the passage?
(a) Reduction in interest rate
(b) Increase in cost
(c) Supply disruptions
(d) Increase in demand - Which of the following measures the RBI can take to consolidate growth?
(a) Reduce tax on fuel price
(b) Reduce import duty
(c) Increase access to credit by MSMEs
(d) Absorb price increased by providing subsidies - Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: The policy response appropriate for inflation caused by excess demand would be wholly suited for inflation caused by a spike in energy prices.
Reason R: The right way to combat elevated inflation right now is to reduce the burden of taxes that energy beers in India.
In light of the above statements, choose the most appropriate answer from the options give below:
(a) Both A and R are correct and R is the correct explanation of A
(b) Both A and R are correct but R is NOT the correct explanation of A
(c) A is correct but R is not correct
(d) A is not correct but R is correct