ANSWERS TO QUESTIONS ON BANKING

BANKERS ACADEMY, PALAKKAD

1. Which of the following is not considered as lending under infrastructure sector ?
(A) A Highway project
(B) Construction of Educational Institution
(C) Construction of Hospital
(D) Laying down of petroleum pipelines
(E) None of the above
Ans : (E)

2. KYC guidelines have been framed on the recommendations/as per guidelines of—
(A) Reserve Bank of India
(B) Ministry of Finance
(C) Indian Banks Association
(D) Financial Action Task Force
(E) Ministry of Home affairs
Ans : (A)

3. The term 'Power of Attorney' refers to—
(A) Power of a person
(B) An authority to operate a Bank account
(C) An instrument by which a person is empowered to act for another person
(D) All of the above
(E) None of the above
Ans : (C)

4. What is the amount of compensation to be paid per day, as per RBI directives in case of failed ATM transactions ?
(A) Rs. 50
(B) Rs. 100
(C) Rs. 200
(D) Rs. 500
(E) It is at the discretion of each Bank
Ans : (B)

5. Financial Action Task Force has an office in India at which place ?
(A) Mumbai
(B) Chennai
(C) Kolkata
(D) New Delhi
(E) All the above places
Ans : (D)

6. Bridge loans refer to—
(A) Loans granted to contruction companies for construction of bridges
(B) Loan granted to PWD for construction of bridges over Rivers
(C) Interim finance allowed by banks to their customers pending disbursement of term loans by financial institutions
(D) All of the above
(E) None of the above
Ans : (C)

7. Payment of Demand Draft can be stopped by—
(A) Payee
(B) Holder
(C) Purchaser
(D) All of these
(E) None of these
Ans : (A)

8. Can any one file an appeal against the order passed by the Banking Ombudsman ? If so who is the Appellate Authority ?
(A) The Chairman of concerned Bank
(B) The Deputy Governor RBI
(C) Governor of RBI
(D) Finance Minister
(E) None of the above
Ans : (B)

9. For which one of the following reasons, the Government has approved a plan to infuse Rs. 15,000 crore capital into PSBs ?
(A) To boost their lending capacity
(B) To maintain minimum CRAR as per Basel II norms
(C) To maintain NPA provision coverage ratio
(D) To strengthen the Balance Sheet of banks
(E) None of these
Ans : (A)

10. What is monetary policy transmission ?
(A) It refers to monetary policy of Central Bank
(B) It refers to fiscal policy of Government
(C) It refers to various channels through which the monetary policy of a Central Bank alters prices or output in the real economy
(D) It refers to various channels through which the fiscal policy of the Government alters prices or output in the real economy
(E) None of these
Ans : (C)

11. On which one of the following issue IMF has supported monetary policy of India ?
(A) Tightening of monetary policy
(B) Stimulus for agriculture sector
(C) Concessions for foreign investment
(D) Introduction of GST
(E) None of these
Ans : (A)

12. The advantage of convenience in credit card operations is for—
(A) Customer
(B) Members Establishments
(C) Banks
(D) All the above
(E) None of the above
Ans : (D)

13. Under provisions of which one of the following Acts, CAs/CS have been told to report all suspicious fund trasnfers ?
(A) RBI Act
(B) Banking Regulation Act
(C) Indian Companies Act
(D) Unlawful Activities (Prevention) Act
(E) None of these
Ans : (D)

14. Bancassurance is—
(A) an insurance scheme to insure bank deposits
(B) an insurance scheme exclusively for the employees of banks
(C) a composite financial service offering both bank and insurance product
(D) a bank deposits scheme exclusively for employees of insurance companies
(E) None of the above
Ans : (C)

15. In the term STRIPS, the first letter 'S' denotes—
(A) Separate
(B) Small
(C) Special
(D) Savings
(E) None of these
Ans : (A)

16. Which of the following organizations, provide credit history of the borrowers ?
(A) CIBIL
(B) SEBI
(C) RBI
(D) CRISIL
(E) IBA
Ans : (A)

17. Loans/advances to farmers is treated as—
(A) Personal Loans
(B) Priority Sector Loan
(C) Business Loan
(D) Corporate Loan
(E) None of these
Ans : (B)

18. Which one of the following organisations maintains CRR ?
(A) RBI
(B) SEBI
(C) NABARD
(D) IBA
(E) None of these
Ans : (A)

19. When the loan is granted for purchase of white goods it is called—
(A) Consumption loan
(B) White goods loan
(C) Consumer durable loan
(D) All the above
(E) None of the above
Ans : (C)

20. Which one of the following is the objective of Mahatma Gandhi National Rural Employment Guarantee Act ?
(A) To provide 100 days employment to people in rural areas
(B) To provide employment to educated youth
(C) To provide employment under KVIC schemes
(D) To create more valuable rural assets
(E) None of these
Ans : (A)