Practice Test

Q1) Which of the following is not a part of bank's income generating assets? Show Answer

Q2) Which of the following does not constitute a liability of a bank? Show Answer

Q3) Which of the following does not constitute an asset of a bank? Show Answer

Q4) Which of the following was not a part of the financial sector reforms implemented in 1992? Show Answer

Q5) Which of the following is not a part of priority sector for purposes of bank lending: Show Answer

Q6) The ________ of a commercial bank show the sources of funds for its business. Show Answer

Q7) __________ was an important measure introduced under banking sector reforms to provide operational flexibility to the banks. Show Answer

Q8) The ratio of capital to risk- weighted assets of a bank is called the _________. Show Answer

Q9) As per Basel II guidelines all Indian banks were required to maintain a stipulated minimum CRAR of _________. Show Answer

Q10) In terms of spread the ___________ were way ahead of other bank groups, in the recent period. Show Answer

Q11) Bank's profitability does not depend on non-performing assets Show Answer

Q12) There is a trade-off between the objectives of liquidity and profitability of a commercial bank. Show Answer

Q13) Money at call and short notice are liabilities of a commercial bank. Show Answer

Q14) Deposits are assets of the commercial banks Show Answer

Q15) Loans and advances are the liabilities of commercial banks. Show Answer

Q16) Bank's most profitable assets are cash balances with the bank. Show Answer

Q17) The liquidity position of commercial bank depends on Statutory Liquidity ratio. Show Answer

Q18) The profitability of banks does not depend on operating costs. Show Answer

Q19) Share Capital is not a liability of bank. Show Answer

Q20) Lowering of SLR & CRR were the important steps in banking sector reform Show Answer

Q21) Loans made by a bank in the money market are highly liquid Show Answer

Q22) Banking sector reforms introduced Universal Banking in India Show Answer

Q23) The financial soundness of a bank is reflected in its capital adequacy ratio. Show Answer

Q24) The primary functions are also known as banking functions and the secondary as non-banking functions Show Answer

Q25) Saving banks is not an important source of funds for the bank Show Answer

Q26) Interest on recurring deposits are almost equal to the interest paid on the fixed deposits Show Answer

Q27) In case of overdraft interest is charged on the whole amount sanctioned as overdraft facility Show Answer

Q28) Banks advance credit by discounting government securities Show Answer

Q29) Electronic Fund Transfer is a hard and time consuming mechanism to facilitate the transfer of funds from one place to another Show Answer

Q30) Telebanking is an 12 hour banking facility to the customer Show Answer

Q31) Customer can talk to a phone banking officer for of transacting banking business Show Answer

Q32) A Personal Identification Number will be issued to the customer for using the debit card Show Answer

Q33) ATMs are Automated Teller Machines Show Answer