Banking Awareness - Banking System of India
Exam Duration: 45 Mins Total Questions : 30
Section 31 (2) of the Reserve Bank of India act, 1934 prohibits of making or issuing of a expressed to be payable to bearer thereof
- (a)
Cheque
- (b)
bill of exchange
- (c)
promissory note
- (d)
demand draft
- (e)
None of these
In India, the system of decimal coinage was introduced on
- (a)
15th August, 1947
- (b)
26th January, 1950
- (c)
1st April, 1957
- (d)
All of the above
- (e)
None of the above
Sub-section 12AB of Section 17 of the Reserve Bank of India Act, 1934 defines the term as an instrument for borrowing funds by selling securities of the Central Government or a State Government or such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities, with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed?
- (a)
Bank rate
- (b)
LAP
- (c)
Repo
- (d)
Reverse repo
- (e)
None of these
Sub-section 12AB of Section 17 of the Reserve Bank of India Act, 1934 defines the term as an instrument for borrowing funds by purchasing securities of the Central Government or a State Government or such securities of a local authority as may be specified in this behalf by the Central Government or foreign securities, with an agreement to reseel the said securities on a mutually agreed future date at an agreed price which includes interest for the funds lent.
- (a)
Bank rate
- (b)
LAP
- (c)
Repo
- (d)
Reverse repo
- (e)
None of these
Which of the following is the sale authority for issue of currency in India?
- (a)
Government of India
- (b)
Reserve Bank of India
- (c)
Controller of Currency
- (d)
All of the above
- (e)
None of the above
The miniting of rupee coin is governed by
- (a)
Coinage Act, 1906
- (b)
Reserve Bank of India Act, 1934
- (c)
Banking Regulation ACt, 1949
- (d)
Currency Act, 1902
- (e)
None of the above
One rupee notes and coins are issued by
- (a)
Reserve Bank India
- (b)
State Bank of India on behalf of Government of India
- (c)
Government of India
- (d)
Finance Minister of Central Government
- (e)
None of the above
Which of the following instruments of credit control adopted by Reserve Bank of India does not fall within 'general' or 'quantitative' methods of credit control?
- (a)
stipulation of certain minimum margin in respect of advance against specified commodities
- (b)
Open market opeartions
- (c)
Bank rate
- (d)
Variable reserve requirements
- (e)
None of the above
Which of the following fall under the qualitative methods of credit control adopted by Reserve Bank of India?
- (a)
Selective Credit Control
- (b)
Credit Authorisation Scheme
- (c)
Moral Suasion
- (d)
All of the above
- (e)
None of the above
Reverse Repo is a tool used by RBI to
- (a)
inject liquidity
- (b)
absorb liquidity
- (c)
increase the liquidity with banking system
- (d)
to keep the liquidity at one level
- (e)
None of the above
One rupee notes bear the signature of
- (a)
Governor of Reserve Bank of India
- (b)
Prime Minister Of India
- (c)
President of India
- (d)
Secretary, Ministry of Finance (Government of India)
- (e)
None of the above
The rate of interest banks charge its main/major and prime customers is popularly called as
- (a)
Risk Premium
- (b)
Prime Lending Rate
- (c)
Repo Rate
- (d)
Reverse Repo Rate
- (e)
Cost of fund
The Indian Rupee is a
- (a)
token coin
- (b)
standard-token coin
- (c)
standard coin
- (d)
gold coin
- (e)
None of the above
Which of the following training establishment is not run by Reserve Bank of India?
- (a)
Bankers Training College, Bombay
- (b)
College of Agricultural Banking, Pune
- (c)
NIBM
- (d)
All of the above
- (e)
None of the above
Which of the following do not fall within the functions of the Reserve Bank of India?
- (a)
Regulation of currency
- (b)
Control of credit
- (c)
Banker to the government, banker,s bank and lender of the last resort
- (d)
Accepting deposits and making loans and advances to public
- (e)
None of the above
RBI has directed banks that the exercise of verification of asset classification and income recognition should be done as part of the audit work by the branch and statutory Auditors effective from the year ending
- (a)
31st March, 1993
- (b)
31st March, 1994
- (c)
31st March, 1995
- (d)
31st March, 1996
- (e)
None of the above
What does the letter 'L' denote in the term 'LAF' as referred every now and then in relation to monetary policy of the RBI?
- (a)
Liquidity
- (b)
Liability
- (c)
Leveraged
- (d)
Longitudinal
- (e)
Linear
Whenever RBI does some open Market Operation transaction, actually it wishes to regulate which of the following
- (a)
Inflation only
- (b)
Liquidity in economy
- (c)
Borrowing powers of the banks
- (d)
Flow of foreign direct investments
- (e)
None of the above
Interest rates on which of the following deposit schemes is fixed by the Reserve Bank of India?
- (a)
Fixed deposits above 5 years maturity
- (b)
Recurring deposits
- (c)
Saving bank
- (d)
Flexi Deposit Scheme
- (e)
None of the above
Which of the following are decided by the Reserve Bank of India?
I. Deposit rates
II. Base Rate
III. Prime Lending Rate
Select the correct answer using the codes given below
- (a)
Only I
- (b)
Only II
- (c)
Only III
- (d)
II and III
- (e)
None of these
RBI has the recently deregulated the rates of interest to be provided by various banks to their depositors/customers with effect from25th October, on their accounts
- (a)
Time deposit
- (b)
Saving bank
- (c)
Loan
- (d)
Fixed deposit
- (e)
Current
Which of the following is not a function of the Reserve Bank of India?
- (a)
Fiscal policy function
- (b)
Exchange control functions
- (c)
Insurance, exchange and destruction of currency notes
- (d)
Monetary authority functions
- (e)
Supervisory and control function
The Reserve Bank of India has directed all the banks to ensure that the names of their customers, individuals or corporate, do not appear in any list published by the Security Council Committee. This act/directive of the RBI is to ensure which of the following?
- (a)
To ensure that the bank loans/ advances taken by the individuals/organisations are used only in those activities for which they are taken
- (b)
To ensure that money deposited in the bank has not come from unknown and unauthorised sources
- (c)
To ensure that no one visits a foreign nation for any illegal activity by purchasing foreign currency from a bank.
- (d)
To ensure that Indians do not go to a nation where they are being targeted for racial discrimination
- (e)
None of the above
Who is the final authority for deciding the design, form and, material of bank notes?
- (a)
Central Government
- (b)
Reserve Bank of India
- (c)
Indian banks Association
- (d)
Note Issuing Authority of India
- (e)
None of the above
As per the report in various newspapers many private companies are trying to obtain the licenses to launch a banking company in India. Which of the following organisation/agencies issue the license for the same?
- (a)
Securities and Exchange Board of India (SEBI)
- (b)
Indian Institute of Banking and Finance (IIBF)
- (c)
Indian BanksAssociation
- (d)
Register of Companies
- (e)
None of the above
Many times we read a term 'Hot Money' in newspapers. What is/are the characteristics of Hot Money?
I. The term is used for fresh currency notes issued by the RBI.
II. It is the fund which flows in the market to take advantage of high interest rates.
III. It is the fund which is thrown in the market to create imbalance in the stock markets.
Select the correct answer using the codes given below
- (a)
Only I
- (b)
Only II
- (c)
Only III
- (d)
All of these
- (e)
None of these
What are cooperative banks at the village level known as?
- (a)
Central cooperative banks
- (b)
Primary agricultural cooperative societies
- (c)
Village cooperative banks
- (d)
State cooperative banks
- (e)
None of these
As per reports in the newspaper the Indian Rupee is appreciating these days. What does it really mean?
I. The value of the Rupee has gone up.It is now 110 paise and not 100 paise.
II. The exchange rate of Rupee has gone up.
III. Now we can Purchase more in one rupee
Which was not possible earlier?
- (a)
Only I
- (b)
Only II
- (c)
Only III
- (d)
Both I and II
- (e)
None of these
Consider the following
I. Bank Rate Policy
II. Open Market Operations
III. Devaluation of Rupee
Which of the above are called fiscal measures
- (a)
Only II
- (b)
Both I and II
- (c)
Both I and III
- (d)
Only III
- (e)
None of these
Prior approval (as also license) of RBI is required for opening
- (a)
personal banking branches
- (b)
merchant banking branches
- (c)
asset recovery branches
- (d)
All of the above
- (e)
None of the above