financial institutions and banking

Financial Institutions and Banking - 5

Multiple Choice Multiple AnswerRBI sells securities through :-Auction program , Open market operations , Private placements

Multiple Choice Single AnswerThe ultimate source of money in India is:-RBI

Multiple Choice Single AnswerLong term debt instruments have a maturity of :-Over one year

Multiple Choice Multiple AnswerR B I conducts monetary control by way of O M O in :-Treasury bills , State /central Government Securities

True/FalseUnder open market operation RBI conducts buying /selling shares/debentures of blue chip companies.FALSE

Match The Following

Development financial institutions : IFCI

Organized sector : Banking System

Unorganized sector : Indigenous banks

Mutual funds : UTI

Select The BlankThe Shipping Credit and Investment Company of India Ltd. has changed its name to ________ effective from October 1992.SCICI Ltd

Multiple Choice Multiple AnswerA member's IMF Quota determines its :-Financial commitment , Voting power , Drawing power

Multiple Choice Single AnswerDevelopment Financial institutions include :- State financial institutions

Multiple Choice Single AnswerThe unorganized financial system includes :-Indigenous bankers

Match The Following

Fruit Crops, Floriculture, Vegetables : Horticulture

Institutional studies, Dwell Time Studies : Surveys & Studies

Agronomy, Crop Planning, Plant Protection, Farm Inputs : Crop Production

Canals & Rivers, Drip Irrigation : Irrigation & Drainage

Select The BlankThe HDFC was set up in 1977 by the ________.ICICI

Multiple Choice Single AnswerInstruments issued by DFIs and Banks carry :-Highest credit ratings

Multiple Choice Single AnswerLIC of India was set up in :-1956

Select The BlankSecured Premium Notes are ________.Debentures

Multiple Choice Single AnswerPFC is committed to the integrated development of :-Power

True/FalseBanks issue Guarantees on behalf of their clients.TRUE

True/FalseBanks authorized to deal in foreign exchange are known as Authorized Dealers.

FALSEMultiple Choice Multiple AnswerDFHI was set up with the following objective :-To even out imbalances , To provide liquidity , To promote secondary market

Multiple Choice Multiple AnswerNABARD has taken over the entire functions of :-ARDC , ACD of RBI , RPCD of RBI

Multiple Choice Multiple AnswerR B I issues currency notes against the security of:-Gold bullion , Foreign securities , GOI securities

Select The BlankThe ________ has been accredited by RBI as a Primary Dealer in Government Securities.STCI

True/FalseThe SFCs also borrow from SIDBI & IDBI.FALSE

Select The BlankLegally speaking Pass Through Certificates are ________ and are traceable freely.Promissory notes

Select The BlankDFIs are the second largest issuer of ________ after the Govt and Sovereign bodies.Debt instruments

Multiple Choice Multiple AnswerFrom time to time RBI has issued :-Straight coupon bonds , Inflation linked bonds , Zero coupon bonds

True/FalseThe currency notes issued by RBI are legal tender everywhere in India without any limit.TRUE

True/FalseHDFC was set up by NHB.

FALSE

True/FalsePFC also provides reform & restructuring related studies.TRUE

Select The BlankThe ________ was set up to help corrections in BOP maladjustments.IMF

Select The BlankThe CRAFICARD recommended the establishment of ________.NABARD

True/FalseNIDHIS are Trading Organizations.FALSE

Select The BlankThe term ________ refers to the act of a bank extending finance to the seller against a letter of credit.Negotiation

Multiple Choice Multiple AnswerSoft Loan Scheme for modernisation is provided by :-IFCI , ICICI , SIDBI

Match The FollowingCharitable Trusts- Rajiv Gandhi Foundation

PSU MTNL ,SAIL, KRC MTNL ,

Mutual Funds UTI ,ICICI Prudential

Statutory Trusts Port Trust Port Trust

True/FalseUnder MIGA the World bank offers various forms of Political Insurance.Answer True

Multiple Choice Single AnswerCommercial Papers are issued by :-

Corporates

Investment on a monthly basis and repayment on due date is made in :-Recurring deposit

True/FalseIssuance of CD attracts reserve requirements.False

True/FalseState loans are much less liquid than GOI Securities.True

Multiple Choice Single AnswerIDBI was delinked from RBI and it became autonomous in the year :-1976

One of the leading All India FI is :-SIDBI

Multiple Choice Single AnswerThe largest member of the IMF is the :-U.S.A.

Multiple Choice Single AnswerThe foreign currency account maintained by an authorised dealer with its correspondent abroad is :-Nostro Account

Select The BlankAs a banker to the Government, RBI accepts Government deposits at ________% interest.0

Multiple Choice Single AnswerThe word ' Tranche ' is a French word which means :-A Slice

Multiple Choice Single AnswerSize of the Quota depended upon :-GNP

Match The FollowingSmall Savings : Chit FundsGen.Insurance : NICo of India Ltd.Life Insurance : LIC of India LtdMutual fund : UTI

True/False

CPs have to be compulsorily rated.True

Multiple Choice Single AnswerIf the Bank allows a finance of Rs 95 against a Bill of Rs 100 the difference of Rs. 5 is known as the :-Discount

Multiple Choice Multiple AnswerIIBI (formerly known as IRBI )undertakes :-Merchant Banking activities , Lease or hire purchase finance , Consultancy & managerial services

Select The BlankThe loans under________ are based on Poverty Reduction Strategy Paper.PRGF

Multiple Choice Multiple AnswerFunctions of a Bank's H.O. include:-Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Single AnswerDICGC also provides :-Security to deposits

Match The FollowingInsurance of all employees of a Firm : Group InsurancePremium Throughout Life : Whole Life Fixed Period Insurance : EndowmentInsurance of ocean Cargo : Marine Insurance

True/FalseA Cheque is a Negotiable Instrument.True

Multiple Choice Single AnswerWhich one of the following is not a deposit account?Cash Credit account

Select The BlankThe ________ does not collect Savings from the Public.NIICO Ltd.

Multiple Choice Single AnswerIMF articles were amended in 1978 to legalise the :-

Floating exchange rates

Select The Blank________ is merely an asset created out of book entries.SDR

Regional Rural Bank : Thane Gramin BankPublic Sector Bank : Indian BankPrivate Sector Bank : Bank of Rajasthan LtdForeign Bank : CITI BANK

Select The BlankSyndication of Loans Globally does not involve any funds as it is ________ activity.Non-fund based

True/FalseIssuance of CD attracts reserve requirements.False

Select The BlankThe repayment holiday period is also known as ________ period.Moratorium

Multiple Choice Single AnswerZero Coupon Bonds are issued at a :-Discount to face value

Multiple Choice Multiple AnswerDICGC does not insure the deposits :-Of foreign Governments , Of State Cooperative Banks , Of the Central Government

Multiple Choice Single Answer

Which one of the following is a Cooperative Bank?COSMOS BANK


Liabilities of Insurance Cos are mostly :-Long term

Select The BlankGIC raises funds to meet claims from ________.Premium collected

True/FalseIssuance of CD attracts reserve requirements.FalseMultiple Choice Single AnswerInvestment on a monthly basis and repayment on due date is made in :-Recurring deposit

Multiple Choice Single AnswerA current account where the customer can withdraw more than the balance is :-Overdraft

Multiple Choice Single AnswerSIDBI commenced its operations from :-April 2,1990

Match The FollowingNABARD -Rural DevelopmentAFC Ltd -ConsultancyHUDCO -HousingNCDC -Development of Cooperatives

Multiple Choice Single AnswerThe first long term industrial financing corporation set up in the country was :-IFCI

True/FalseThe Capital of NABARD is subscribed by World Bank.False

Multiple Choice Single AnswerFinancial institutions deal in :-Financial assets

Multiple Choice Single AnswerIn addition to sugar Industry IFCI has predominantly lent to :-Textile sector

Multiple Choice Multiple AnswerOther than Tourism, International funds remittances comprise of :-Donations/Charity , Payments of Salaries , Payments of Royalty

True/FalseNABARD provides Refinance for Marketing of Crops.True

Multiple Choice Multiple AnswerR B I conducts monetary control by way of O M O in :-Treasury bills , State /central Government SecuritiesMultiple Choice Single AnswerDevelopment Financial institutions include :-State financial institutions

Select The BlankNABARDs Criteria for Refinance covers Technical ________ of the project.Feasibility

True/FalseBanks do not invest in the GOI securities .False

Multiple Choice Multiple AnswerThe unorganised financial system comprises of :-Money lenders , Indigenous bankers , Lending pawn brokers

Select The BlankNHB at present has a ________ Capital of Rs. 350 crores.Paid-up

Select The BlankOne of the objectives of NHB is to augment the ________ resources for the housing sector.Financial

Match The FollowingCRR : Primary reserve requirementBankers Bank : Controlling the reserves of commercial banksExchange control : FEMAOMO : Government securities

Multiple Choice Single AnswerNABARD was established on the recommendations of :-CRAFICARD


Multiple Choice Multiple AnswerCredit Information report is also known as :-Credit report , Banker's report , Confidential report

Select The Blank

Development financial institutions have been established to cater to ________ of the industrial sector.Long term financial needs

Multiple Choice Multiple AnswerTourism promotes :-Credit Card Business , International remittances , Travellers' Cheques

True/FalseDevelopment financial institutions primarily lend to Agriculture sector.False

Select The BlankThe ________ is the apex institution in the field of foreign trade in India.EXIM bank

Select The BlankFinancial markets are the centres that provide facilities for buying and selling of ________.Financial claims and services

True/FalseNon bank financial institutions undertake fund and non fund based activities.True

Select The BlankThe CRAFICARD recommended the establishment of ________.NABARD

Select The BlankThe price in financial markets is known as ________.Rate of interest

True/FalseGramin banks are State Owned Banks.True

Multiple Choice Single AnswerA credit facility under which a borrower can withdraw up a certain limit subject to availability of adequate security is :-Cash Credit account

Select The BlankSyndication involves ________ sanction.In principle

Multiple Choice Multiple AnswerTreasuries could be either those of the :-Private Sector Cos. , Govt.bodies , PSUs

Multiple Choice Single AnswerTreasury Bills are actually a class of :-Govt.Securities

Select The BlankThe ________ regulation makes the banks the largest investor in the GOI securities.SLR

True/FalseHDFC was set up by NHB.False

Multiple Choice Single AnswerInitial Quantum of resources of IMF were contributed by members according to :-Quotas fixed for members

True/FalseMost of the Indian PS Banks practice retail banking.True

True/FalseThe overdraft facility is also known as Cash credit facility.True

True/FalseCPs are issued by corporate entities.True

True/FalsePFC has been persuading State Governments restructuring of their power sector to make them viable.True

Multiple Choice Single AnswerThe organised financial system includes :-Commercial banks

Select The Blank

55% of HUDCO loans are earmarked for________& low income groups.Weaker sections

Multiple Choice Multiple AnswerFinancial Services offered by PFC include :-Term loans , lease finance , Loan Syndication

True/FalseThe currency notes issued by RBI are legal tender everywhere in India without any limit.True

Multiple Choice Single AnswerThe unorganised financial system includes :-Indigenous bankers

Multiple Choice Single AnswerMoney Markets Satisfy the needs of :-Short term nature

Multiple Choice Multiple AnswerThe financial Assistance provided by the IMF enables member countries to :-Rebuild resources , Stabilise currencies , Pay for imports

Match The FollowingNGOs : CASP, CRY, PLAN

DFI : IDBI, IFCI, ICICI

PSUs : NTPC, NHPC, Coal India

Corporates : RIL, HPCL

True/FalseGramin banks are State Owned Banks.True

Select The BlankCRR and SLR are ________ reserves.Statutory

True/FalseBanks do not invest in the GOI securities .False

Multiple Choice Multiple AnswerSIDBI provides :-Refinance , Rediscounting of Bills , Financial support to SSIDC

Select The BlankMutual Funds provide the benefits of ________.Portfolio management

Select The BlankSyndication involves ________ sanction.In principle

Select The BlankThe ________ regulation makes the banks the largest investor in the GOI securities.SLR

Select The BlankIn addition to IFCI and ________ the Soft Loan Scheme for modernisation is also undertaken by IDBI.ICICI

Multiple Choice Multiple AnswerNABARD has taken over the entire functions of :-ARDC , ACD of RBI , RPCD of RBI

Multiple Choice Single AnswerInstruments issued by DFIs and Banks carry :-Highest credit ratings

Multiple Choice Multiple AnswerOther than Tourism, International funds remittances comprise of :-Donations/Charity , Payments of Salaries , Payments of Royalty

Multiple Choice Single AnswerMoney Markets Satisfy the needs of :-Short term nature

Multiple Choice Single AnswerDevelopment Financial Institutions provide finance to the needyCorporates & govt. institutions

True/FalseNABARD does not provide Refinance for stocking & distribution of Chemical Fertilisers.False

True/FalseThe SFCs also borrow from SIDBI & IDBI.True

Multiple Choice Single AnswerA major part of the credit of SFCs went to :-SSI unit

True/FalseMortgage Loans are loans against property.True

Multiple Choice Single AnswerThe unorganised financial system includes :-Indigenous bankers

Select The BlankHDFCs loans were linked up with________.Planned Savings

Multiple Choice Single AnswerInitial Quantum of resources of IMF were contributed by members according to :-Quotas fixed for members

True/FalseCPs are issued by corporate entities.True

Multiple Choice Multiple AnswerFunctions of R.O. do not cover :-SLR/CRR maintenance , Liaison with RBI/IBA , Issuing Lending Policy

Match The FollowingInter Bank Call Money Markets : BRs, Call Money ReceiptsMoney Market Instuments : CP, CD ,T- BillsCapital Market Instruments : SharesDebt Market Instruments : GOI Securities ,Bonds

Multiple Choice Multiple AnswerWhich of the following statements are not prepared on a daily basis in branch?Cash Book , Trial Balance , P/L statement

Select The BlankInterest on advances is generally calculated on ________ products.Daily


IDBI has helped in the establishment of :-EXIM Bank

Multiple Choice Multiple AnswerUnder Project Finance Scheme IDBI provides assistance for :-New Projects , Renovation , Modernisation

Multiple Choice Single AnswerDeposits per depositor per bank are secured by DICGC up to a sum of :-Rs. one lac.

Select The BlankSCICI provides domestic & foreign loans for capital equipment and________ services.Technical

Multiple Choice Multiple AnswerThe main objective of ICICI was :-To augment export finance in India , To channelise World Bank's funds to industries in India , To help in building up a Capital Market in India

Multiple Choice Multiple AnswerFunctions of NIDHIs include :-Accepting Deposits , Granting loans , Encourage thrift

Multiple Choice Single AnswerIDBI was initially set up as :-Subsidy of RBI

Multiple Choice Multiple AnswerFor its long term operations NABARD raises funds by :-Floating Bonds in open market , Drawing from the Central Govt. , Drawing from National Rural credit Funds

Select The BlankFinancial markets are the centres that provide facilities for buying and selling of ________.Financial claims and services

True/FalseIDA does not lend to countries that are not in a position to borrow from IBRD.False

Select The BlankGeneral insurance policies are genarally issued for ________ year.One

True/FalseSCICI is a member of the OTCEI.True

Multiple Choice Single AnswerThe deposit account offering cheque withdrawal facility is known as :-Current account

Match The FollowingCRR : Primary reserve requirementBankers Bank : Controlling the reserves of commercial banksExchange control : FEMAOMO: Government securities

Multiple Choice Multiple AnswerThe loans of finance companies are generally :-At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single AnswerThe apex institution in the field of Industrial Development is :-IDBI


True/FalseCP is a usance promissory note hence it can be negotiated by endorsement & delivery.True

Multiple Choice Single AnswerThe objective of ICICI was to assist the :-Private sector

True/FalseNABARD provides short term refinance for procurement activities also.True

Select The BlankPeriod of Holiday Insurance is ________.Six months or less

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