Banking GK

1.      Which among the following is correct about the Vostro Account?

(1) It is an account maintained by a foreign bank with a Bank in India in Indian rupees.

(2) It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency.

(3) It is an account maintained by an Indian Bank Branch with a Foreign Bank in Foreign Currency.

(4) It is an account maintained by a Foreign Bank Brach with a Indian Bank in Foreign Currency.

5) None of the above

2.      Which among the following body promote securities Trading Corporation of India Limited (STCI) jointly with the public sector Bank?

(1) Securities Exchange Board of India

(2) Reserve Bank of India

(3) IDBI Ltd.                       (4) ICICI Ltd.               

(5) None

3.      Consider the following statement in Context with Treasury Bills?

(1) They are issued by Government of India on behalf of Reserve Bank of India

 (2) They are mostly for short term borrowings.

(3) Treasury Bills cannot be purchased by any person resident of India

Which among the above is/are correct?

(1) All are correct                         (2) B & C is correct  

(3) Only B is correct          (4) Only C is correct

(5) Only A is correct

4.      Bring out the only incorrect statement:

(1) Reverse Repo operation by RBI aims at injecting/ increasing liquidity.

(2) SDR refers to special drawing rights.

(3) Rupee appreciation results in decrease in imports.

(4) Increase in inflation rate leads to decline in real interest rate

(5) None of the above

5.      Consider the following statements:

(1) Increase in deposit rate result in Higher Savings.

(2) Increase in deposit rate results in fall in credit off takes.

(3) Increase in deposit rate results in increase in investment. 

Which among the above statements is/ are correct?

(1) A & B                           (2) A & C

(3) A, B, C                                      (4) Only A  

(5) Only B

6.      Which among the following would result in the fall in asset prices?

(1) Low Liquidity in the Economy

(2) High Liquidity in the Economy

(3) RBI increasing the Reserve Repo Rates.        
(4) RBI allows more banks to play           

(5) None of the above

7.      Which among the following is the most reasonable idea behind issuing the “Sweat Equity” by the companies now-a-days?

(1) To provide more profits to the retail investors.

(2) To provide more profits to the corporate investors.

(3) To retain the best employees

(4) To save tax

(5) None of the above

8.      Which among the following is the designated body to carry out the KYC compliance procedure for mutual fund investors in India?

(1) Securities and Exchange Board of India

(2) Reserve Bank of India

(3) CDSL Ventures Limited

(4) Central Depository Services India Limited

(5) None of the above

9.      The Government does not propose to increase Foreign Direct investment (FDI) limit in the banking sector for now. At present, FDI is capped at____ In private sector bank. In the case of public sector banks, the limit is…

(1) 74 %, 20 %                   (2) 49 %, 14%      

(3) 33%, 10%                     (4) 65%, 30%

(5) 23 %, 10%

10.  How many Government/Public sector Undertaking are registered with both BSE and NSE?

(1) 42                                 (2) 24

(3) 34                                 (4) 14  

(5) 31

11.  Which of these was the first Indian bank to open its branches outside India?

(1) State Bank of India      (2) Bank of India

(3) ICICI                

(4) Punjab National Bank (5) None of these

12.  Which of the following banks has recently developed a super online banking system, which links online banking system of different commercial banks and enables customers to access their accounts on one website?

(1) People’s Bank of China

(2) Chiba Bank                  (3) Rosbank

(4)ABN AMRO                   (5) None of these

13.  What is investment limit by the Government of India on private Indian companies in defence sector, subject of license?

(1) 26%                              (2) 49%

(3) 73%                              (4) 90%

(5) 100%

14.  The rate of interest on Savings Bank Account is stipulated by-

           (1) The concerned bank    (2) RBI        (3) Indian Banks Association    (4) Government of India

           (5) Banking Codes and Standards Board of India

15.  The idea of Lokpal has emanated from the office of ombudsman, which is prevalent in ____ countries.

(1) Latin American            (2) South East Asian   

(3) Scandinavian               (4) European

      (5) African

16.  The central government has set up as high level committee on financing infrastructure, which would suggest steps for improving capital markets for garnering long term saving and facilitating foreign investment flow. The committee is headed by which former Reserve Bank of India Deputy Governor?

(1) S.S. Tarapore  

(2) Shyamala Gopinath     (3) Subir Gokaran

(4) Rakesh Mohan             (5) None of these

17.  Which among the following is the main motive of the Reserve Bank of India behind its mechanism known as development?

(1) To counter the problem of low capital in the scheduled Banks.

(2) To Counter the Volatility in the price of Government Securities.

(3) To handle the problem of discrepancy in accounting systems in banks.

(4) To control the scheduled banks assets and liabilities.

       (5) None of these

18.  Who amongst the following economists gave the concept of 'economies of scale', which says 'many goods and services can be produced more cheaply in long series'?

(1) Edward C. Prescott      (2) Amartya Sen

(3) Gary S. Becker             (4) Edmund S. Phelps

(5) Paul Krugman

19.  Expand the term CAMELS-

(1)Capital Adequacy Management Quality Expenditure Liquidity Sensitivity to Market Risk

(2)Capital Adequacy Management Quality Earnings Liquidity Sensitivity to Market Risk

(3)Capital Accuracy Management of Earning Liquidity Securitization

(4)Capital Adequacy Mismatch of Earning Liquidity and Securitization

(5) None of these

20.  In its midterm review of the economy the Reserve Bank of India pegged the country's economic growth for fiscal year 2011-12 at which of the following levels?

(1) 9%                                (2) 9.5%

(3) 7%                                (4) 7.7%

(5) 8%

21.  Very often we read in newspapers / magazines about 'Sovereign Wealth Funds'. Which of the following is / are the correct description of the same?

(1) These are the funds or the reserves of a government or central bank of a country which are invested further to earn profitable returns.

(2) These are the funds, which were accumulated by some/ people over the years but were not put in active circulation as they retain them as Black Money for several years.

(3) The funds which are created to be used as relief funds or bailouts packages are known as sovereign funds.

(1) Both B and C only        (2) Only B

(3) Only C                          (4) Only A

(5) None of these

22.  National Manufacturing Policy (NMP) gets in principle approval from a High Level Committee headed by PM. Which of the following is the objective of NMP?

(1) To increase the contribution of manufacturing sectors to 25% from existing 16% by 2025.

(2) To create “National Investment Manufacturing Zones”

(3) To create 10 crore new job openings in manufacturing sector.

(1) Only A                          (2) Both A & B

(3) Both B & C                   (4) Only C

(5) All of these

23.  The Ratio of the Cash Reserves that the banks are required to keep with RBI is known as-

(1) Liquidity Ratio             (2) SLR

(3) CRR     

(4)Net Demand & Time Liability

(5)None of these

24.  The government has appointed Pulok Chatterji as Principal Secretary to the Prime Minister.

Which high profile bureaucrat has Chatterji replaced?

(1) TKA Nair                      (2) Som Mittal

(3) NM Bora

(4) Shiv Shankar Menon    (5)None of these

25.  The government has recently suspended M Ramadoss for alleged violations in issuing insurance cover to an airline during his stint as head of another state run insurer. M Ramadoss was the chairman of which of these insurance companies.

(1) New India Assurance   (2) Oriental Insurance

(3) LIC                                (4) United Assurance

(5)None of these

26.  The Govt. of India Union Govt. cleared 18 Foreign Direct Investment (FDI) Proposals worth of Rs.-

(1) 1000 crores                 (2) 2500.67 crores

(3 ) 2126.20 crores           (4)5098.63 crores

(5)7023.9 crores

27.  The Union Cabinet has cleared setting up a national level social security fund for unorganized workers. The proposed National Social Security Fund will have an initial corpus of

(1) Rs 1000 cr                    (2) Rs 1100 cr

      (3) Rs. 1200 cr                   (4)Rs 1500 cr

(5) None of these

28.  The proposed National social security fund will be administered by

(1) Union Law ministry

(2) National Social Security Board

(3) Union HRD Ministry

(4) National Commission for Backward Classes

(5) None of these

29.  Indian recently made its first payments in more than five months for crude oil its buys from Iran when a $100 million wire-transfer was received by Tehran via state-owned Turkiya Halk Bankasi (Halkbank). Halkbank belongs to which country?

(1) Bahrain                        (2) Egypt

(3) UAE                               (4)Turkey

(5)None of these

30.  As per new revised rules now Foreign Direct Investment in Pension sector is possible upto the limit of-

(1) 26%                              (2) 40%

(3) 49%                              (4)70%

(5)None of these

31.  Government has reached an agreement to settle its oil payment crisis with Iran. Under this payments settlement government instructed Indian oil importers to open rupee account in which of the following bank that will route the euro payments to the Turkish state run bank Turkiya Halk Bankasi (Halkbank) in Istanbul?

(1) Central Bank of India (2) Bank of India

      (3) Union Bank of India

(4)Indian Overseas Bank   (5)None of these

32.  The World Development Report 2011 was released recently. Who publishes the World Development Report every year?

(1) Asian Development Bank

(2) World Bank

(3) International Monetary Fund

(4)United Nations Organizations

(5)None of these

33.  What is the amount which India has given to fund bailouts in European countries facing a crisis due to high levels of debt?

(1) $1 bn                            (2) $2 bn  

(3) $3 bn                            (4)$3 bn

(5)None of these

34.  According to joint study by industry association FICCI and Ernst & Young predicted Indian mobile devices market to reach which of the following marks annually by 2020?
(1) 300 million                  (2) 350 million
(3) 375 million                  (4) 430 million

35.  (5)  562 million
The first Baltic country with which India signed an Agreement and protocol for Avoidance of Double Taxation and the prevention of Fiscal Evasion with respect to Taxes on Income and on capital (DTTA) is:

(1) Lithuania                      (2) Estonia

(3) Latvia                           (4) Finland         

(5) None of these

36.  As per the news reports members of the SAARC agreed to establish a 'SAARC Food Bank' to ensure food security for members in case of any emergency. Which of the following nations agreed to provide maximum quantity of food for the bank ?

(1) India                             (2) Bhutan

(3) Sri Lanka                      (4)Pakistan

(5)None of these

37.  With which of these neighbouring countries has India signed a comprehensive Border Management Deal recently?

(1) Bangladesh                  (2) Myanmar

(3) Nepal                           (4)Bhutan

(5)None of these

38.  Which of these auto giants would invest $1 billion to build a vehicle assembly and engine plant in Sanand, Gujarat, as it ramps up production to exploit the country’s burgeoning car market.

(1) Volkswagen                 (2) Hyundai

(3) Skoda                           (4)Ford

(5)None of these

39.  Which of the public sector banks has agreed to pick up a 30% stake in MetLife India which will make it the single largest shareholder in the private insurance company?

(1) SBI                                (2) Bank of India

(3) Syndicate Bank                        (4) PNB

(5) None of these

40.  The availability of Cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as-

 (1) Cash crunch                 (2) Liquidity

            (3) Credit                           (4)Marketability

           (5)None of these

41.  A panel constituted by which of the following bodies on mutual funds in October 2011 retained the minimum capital requirement to start a fund house at Rs 10 crore, rejecting a proposal to increase the net worth criterion?
(1) IRDA                             (2) SEBI
(3) RBI                               (4) CCI

(5)None of these

42.  Which of the following public sector banks in November 2011 froze its lending to the power sector?
(1) State Bank of India      (2) Allahabad Bank
(3) Punjab National Bank

(4) United Bank of India    (5) None of these

43.  Consider the following:-

(A) Provisions regarding Statutory Liquidity Ratio (SLR)

(B) Provisions regarding Cash Reserve Ratio (CRR)

Which among the following represents the act/acts in which the above have been enshrined respectively?

      (1) RBI Act, Banking Regulation Act

      (2) Banking Regulation Act, RBI Act

      (3) Both in RBI Act

      (4) Both in Banking Regulation Act

      (5) None of these

44.   Which of the following companies entered into a partnership with the department of information technology to provide rural population socially oriented investment options?
(1) UTI Infrastructure Technology
(2) L&T Infrastructure       (3) ICICI Mutual Fund
(4) RIL                                (5) None of these

45.  As per the decision taken by the Govt. of India now the Mahatma Gandhi National Rural Employment Guarantee Act is extended to all the districts of Indi(1) This means it will now be applicable to about-

(1) 200 districts                 (2) 300 districts

(3) 400 districts                 (4) 500 districts

(5) 640 districts

46.   For calculation of poverty line in rural area which one of the following calories consumption per day per person has been stipulated by Planning Commission?

          (1) 2000                             (2) 2100          (3) 2400                 (4) 2500    (5) None of these

47.  As we all know India has a three-tier structure of the tax administration. There are taxes levied by Central Governments, State Governments and Local Governments. Which of the following taxes is levied by the Local Government Bodies?

          (1) Value Added Tax         (2) Stamp Duty        (3) Service tax              (4) Land Revenue

          (5) Tax on water supply and drainage etc

48.  The World's Highest Rail Bridge is being built over - 

        (1) Brahmaputra River     (2) Beas River

(3) Chenab River                  (4) Yamuna River

(5) None of these

49.  Rashtriya Swasthya Bima Yojana was proposed to be being extended to the beneficiaries of which of the following Union Government schemes?

        (1) Mahatma Gandhi NREGA beneficiaries
(2) Beneficiaries of Swavlamban pension scheme
(3) Indira Gandhi National old Age Pension scheme beneficiaries
(4) Beneficiaries of Rajiv Gandhi Grameen Vidyutikaran Yojana     (5) None of these

50.  Which of these was first Indian company to be listed on the New York based NASDAQ in 1999?

      (1) Wipro                             (2) TCS          (3) Tata Steel                       (4) Infosys       (5) None of these

ANSWERSHEET
Qns.	Ans.	Qns.	Ans.	Qns.	Ans.	Qns.	Ans.	Qns.	Ans.
1.	1	11.	3	21.	3	31.	3	41.	4
2.	2	12.	3	22.	2	32.	4	42.	1
3.	3	13.	1	23.	2	33.	4	43.	4
4.	1	14.	2	24.	2	34.	1	44.	3
5.	3	15.	2	25.	2	35.	1	45.	3
6.	1	16.	2	26.	1	36.	1	46.	1
7.	3	17.	1	27.	1	37.	1	47.	3
8.	4	18.	4	28.	3	38.	3	48.	3
9.	3	19.	2	29.	5	39.	3	49.	3
10.	1	20.	1	30.	1	40.	1	50.	4

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