Practice Test

Q1) The business Correspondence Model being adopted by the banks provides Banking facilities to which of the following ? Show Answer

Q2) Many times we read about SHGs in financial newspapers. What is the full form of the term ? Show Answer

Q3) Whenever newspapers talk about the performance of core industries, which of the following is not considered among them ? Show Answer

Q4) Which of the following agencies/ organizations in India maintains the Micro Finance Development and Equity fund which was in news recently ? Show Answer

Q5) As per recent newspaper reports UK Based Cairn Energy is in the process of selling its stake to which one of the following companies of Indian base ? Show Answer

Q6) Which of the following bills presented in the Parliament will bring some changes in existing tax-regime ? Show Answer

Q7) Govt. of India has decided to review its Foreign Direct Investment Rules twice in a year. This will be done from Show Answer

Q8) Many times we read about ' Hawala ' transactions in newspapers. Hawala in India is prohibited under the provision of which of the following Acts ? Show Answer

Q9) Many times we read about the performance of Asian Markets in various financial newspapers. Which of the following is not included in Asian Market ? Show Answer

Q10) As per the figures released by the World Bank,which of the following countries was the largest recipient of loans from the World Bank during 2009-10 ? Show Answer

Q11) Which of the following has been fixed as the target for fiscal deficit 2010-11 ?
( In terms of percentage of GDP ) Show Answer

Q12) As per news in various newspapers ' kfw' Group released another instalment of its financial aid to India. kfw is an organization based in Show Answer

Q13) As per existing policy, new foreign investment in manufacturing of which of the following is not allowed ? Show Answer

Q14) Which of the following is not a financial term ? Show Answer

Q15) In the terms of economics, the recession occurring two times with a small gap in between is known as Show Answer

Q16) Which of the following terms is not used in Economics ? Show Answer

Q17) The present Cash Reserve Ratio is Show Answer

Q18) One of the objectives of KYC ( Know your Customer ) norms is Show Answer

Q19) Contribution to Prime Minister's relief fund enjoys income Tax benefit up to- Show Answer

Q20) Which of the following activities are expected to be performed by the Business correspondents ? Show Answer

Q21) Tax at source by banks is deducted on interest paid on term deposits in the interest amount in a financial year exceeds Show Answer

Q22) Securitisation and Reconstruction of Financial Assets and Enforcement of security interest Act releates to Show Answer

Q23) MSMED Act is applicable to Show Answer

Q24) Money Laundering refers to Show Answer

Q25) The Monetary and Credit Policy is reviewed by the RBI after a gap of Show Answer

Q26) PPF accounts is opened for a period of Show Answer

Q27) Yuan is the currency of Show Answer

Q28) National savings certificate matures at the end of Show Answer

Q29) Normally Bank, accepts Fixed Deposits for a maximum period of Show Answer

Q30) Code of banks commitment to Micro and Small enterprises is prepared by Show Answer

Q31) Which one of the following is not a silent feature of debit card ? Show Answer

Q32) IFRS stands for Show Answer

Q33) What is the present Repo Rate ? Show Answer

Q34) There are certain financial instruments whose prices are derived from the price of the underlying currency of interest rate of stocks etc. These are known as Show Answer

Q35) What is the full form of ASBA ? Show Answer

Q36) Reverse Repo is used by RBI to Show Answer

Q37) Which of the following is not considered as lending under infrastructure sector ? Show Answer

Q38) KYC guideline have been framed on the recommendations / as per guidelines of Show Answer

Q39) The term ' Power of Attorney ' refers to Show Answer

Q40) What is the amount of compensation to be paid per day, as per RBI directives in case of failed ATM transactions ? Show Answer

Q41) Financial Action Task Force has an office in India at which place ? Show Answer

Q42) Bridge loans refers to Show Answer

Q43) Payment of Demand Draft can be stopped by Show Answer

Q44) Can any one file an appeal against the order passed by the Banking Ombudsman ? If so who is the Appellate Authority ? Show Answer

Q45) For which one of the following reasons, the Government has approved a plan to infuse RS. 15,000 crore capital into PSBs ? Show Answer

Q46) What is monetary policy transmission ? Show Answer

Q47) The advantage of convenience in credit card operations is for Show Answer

Q48) Under provisions of which one of the following Acts, CAs / CS have been told to report all suspicious fund transfers ? Show Answer

Q49) Bancassurance is Show Answer

Q50) Which of the following organizations, provide credit history of the borrowers ? Show Answer

Q51) Loans / advances to farmers is treated as Show Answer

Q52) Which one of the following Organizations maintains CRR ? Show Answer

Q53) When the loan is granted for Purchase of white goods it is called Show Answer

Q54) With which one of the following ' Channel Financing ' is associated ? Show Answer

Q55) Expand the term FRBM Show Answer

Q56) A customer can approach Banking ombudsman if he does not get satisfactory response to his grievance from the bank within how many days ? Show Answer

Q57) Which one of the following country is in talks with EU and international Monetary Fund, to exit from debt crisis ? Show Answer

Q58) For achieving 8.5 percent GDP growth in fiscal 2011-11, which one of the following should be percent growth in farm sector ? Show Answer

Q59) According to a report submitted by IMF in its World Economic Outlook, which one of the following countries will have highest percent GDP growth rate in 2011 ? Show Answer

Q60) Which one of the following is present Bank Rate ? Show Answer

Q61) What is the full form of ' NBFC ' as used in the Financial Sector ? Show Answer

Q62) As per the news published in various financial newspapers, the RBI is reworking the roadmap on Capital Account Convertibility. If this is done, who amongst the following would be able to invest in foreign projects or acquire assets outside India without any restrictions ?
(1) Public Sector Banks
(2) Companies which are registered in India
(3) Government of India
(4) Any Individual Show Answer

Q63) Many a time, we read about Special Drawing RIght (SDR) in newspapers. As per its definition, SDR is a monetary unit of the reserve assets of which of the following organizations / agencies ? Show Answer

Q64) As per the news published in major financial newspapers, the Union Government is planning to divest 20 % stake in the state Owned Hindustan Copper stake in the state owned Hindustan Copper Ltd. What does it really mean ? Show Answer

Q65) As per the current practice, the maximum part of the Global Foreign Exchange Reserves ( more than 60 %) and Foreign Exchange Transactions ( more than 90 % ) take place in only one currency all over the world. Which is that currency ? Show Answer

Q66) The RBI Governor, in one of his speeches, made a mention of inflation Index and said " the problem in India is that which inflation index to target as there are several such indices ". Which of the following statements is CORRECT in this regard? Show Answer

Q67) Which of the following agencies / organisations has recently decided that all the stock Exchanges should introduce physical settlement of equity derivatives ? Show Answer

Q68) Many economists and Financial analysts are of the opinion that India could withstand the recent global economic crisis comfortably because of a good fiscal consolidation and Government's adherence to the targets fixed by the Show Answer

Q69) As per the decision taken by the competent authorities, the Qualified institutional Buyers ( QIBs) are required to pay 100 % application money to make them eligible to bid for public issues. How much amount were the QIBs paying as application or margin money prior to this decision ? Show Answer

Q70) The Finance Minister of India, in one of his speeches said that " the current high inflation is not because of monetary expansion but due to supply side bottlenecks in certain essential commodities ". This means that the Finance Minister is of the view that
(1) The liquidity position in market is quite comfortable these days.
(2) Inflation being experienced these days is not cost push inflation
(3) Markets are flooded with luxury goods but essential commodities are definitely in short supply Show Answer

Q71) Who amongst the following was the Chairperson of the 13 th Finance Commission which submitted its report to the President of India recently ? Show Answer

Q72) As per the news published in various newspapers The RBI is considering the grant of licence to some new companies, particularly NBFCs to act as full-fledged banks. Which of the following will be considered NBFC ? Show Answer

Q73) As per the newspaper reports, China is likely to drop its special ' Yuan ' policy soon. What is this special Yuan policy being followed by China at present ?
(1) China had initiated the policy of Yuan's exchange rate with dollar to Yuan since 2008 at a specified rate decided by it and not by the market forces.
(2) China has initiated a policy which says that all payments in China should be done in Yuan only. No other currency is acceptable.
(3) China has a policy of accepting all payments for its exports in dollar while all imports are paid in Yuan only. US and some other nations do not agree with this. Show Answer

Q74) The deficit reduction plan of which of the following countries was reviewed recently in the meeting of the Finance Ministers of the European Union ? Show Answer

Q75) As per the reports published in various newspapers, Non-Performing Assets of the banks have increased a little during 2009-2010. What does it indicate about the performance of the banks during the period ?
1. Banks have not earned good profit during the period.
2. Banks had given some loans which became bad loans.
3. Banks did not make provision for such bad loans earlier.
Show Answer

Q76) Which of the following is the full form of the term SLR as used in the banking sector ? Show Answer

Q77) As per the news published in various newspapers, some public sector banks are getting fresh capital infusion as a part of the recapitalization plan announced by the Finance Minister in Union Budget 2010-11. How much money was earmarked for the same ? Show Answer

Q78) The RBI has decided to introduce which of the following systems in place of the existing ' Bench-mark Prime Lending Rate System ' for charging interest on loans / advances from July 2010 ? Show Answer

Q79) As per the news published in a major newspaper, profits of a major private bank in the 4th quarter of the year increased by 35 % as the bank decided to keep a tight control on the cost. What are some of the ways by which the banks can control the cost ?
1. By lowering down the interest rates on deposits
2. By bringing down the operating expenses
3. By reducing the interest rates on the credit Show Answer

Q80) As we all know, the major source of income of the banks is lending money ( providing credit ) and earning interest on it. In normal circumstances, the demand of the credit comes mainly from which of the following sectors ?
1. Personal Loans
2. Priority Sector Lending and Bailout Packages
3. Project Finance Show Answer

Q81) One of the sources of income of banks is to charge fee for certain services. What are some of the services provided by banks for which they charge fee ?
1. Issuing Demand Drafts / Pay orders
2. Issue of ATM / Credit ? Debit cards
3. Electronic Transfer of Money Show Answer

Q82) Many banks have launched / floated their subsidiaries which are fully owned by them. Banks launch subsidiaries normally for which of the following business ?
1. Home Loan Business
2. To sell Insurance Policies
3. To control Online Operations or Internet Banking business Show Answer

Q83) " The set of directive principles issued by the Central Bank of a country or the process adopted by it to control the supply of money and rate of interest, etc. in order to bring stability and growth of the economy " are commonly known as Show Answer

Q84) When the common people of a nation start getting very high salary or wages, the consumption of the goods like eatables and white goods, also start increasing. This situation brings which of the following types of inflation in the economy ?
1. Cost push inflation
2. Demand pull inflation
3. Low inflation Show Answer

Q85) As we see every day, many Indian banks are in close competition to open their branches / offices in various countries. What benefit will the Indian economy have if banks open branches in a foreign country ?
1. It will bring substantial economic benefits to India and also to the countries where branches will be opened.
2. It will help in smooth inflow FDI, long term capital inflow and also technical know-how to India.
3. It will give better opportunities to Indians to visit foreign nations and get better facilities like education, medical treatment, etc. Show Answer

Q86) Which of the following public sector banks has the largest number of branches in foreign countries ? Show Answer

Q87) " Higher provisioning dragged the profits of the 4th quarter of some banks " was the news in some major newspapers. This means that the bank Show Answer

Q88) As we all know, RBI recently hiked the CRR by 0.25 basis points. What immediate impact will it have on the functioning of banks ?
1. Banks will have to lock some additional fund with the RBI without any income generation to the banks on these funds.
2. Banks will have to raise their capital base by bringing IPOs or by taking money from the Govt. of India.
3. Banks will have to give more funds to priority sectors and less to corporate sector. Show Answer

Q89) When the Reserve bank says that the Rupee is over-valued, it means ? Show Answer

Q90) Which of the following agencies / organizations has proposed to impose Global Taxes on all the banks ? ( The issue was discussed in the meeting of the G-20 nations held recently ) Show Answer

Q91) The securities and Exchange Board of India (SEBI) has asked all FIIs to divulge the structure of their offshore entities. What purpose will it serve ?
1. To identify if there is any flow of funds from some questionable sources.
2. To know how much money FIIs are planning to invest in India in 2010-11.
3. To forecast the possibility of any financial crisis in near future. Show Answer

Q92) Which of the following schemes is to be launched by the Govt. of India with an initial fund of Rs. 100 crores ?
Show Answer

Q93) In each rupee earned by the Govt. of India, how many paise come from the tax collections or receipts ? Show Answer

Q94) What is the contribution of the agriculture and allied activities in the total GDP of the country ? Show Answer

Q95) The per capita income on current prices in India is Rs. Show Answer

Q96) How much amount was earmarked in the Union Budget 2010-11 for infusion in the capital of the public sector banks during the year ? Show Answer

Q97) As per the estimates given by various organizations / agencies China is expected to reach a new economic target during 2010 by becoming world's second largest Economy. This means China will replace Show Answer

Q98) " POSCO to invest Rs. 1000 crores more in Maharashtra " was a headline in major financial news-papers recently. POSCO is associated with which of the following businesses as its core business in Maharashtra ? Show Answer

Q99) Which of the following is the full form of the abbreviation ' IFRS ' as used in corporate / finance sector ? Show Answer

Q100) Insurance Regulatory and Development Authority (IRDA ) had a dispute with which of the following agencies / organizations over the regulation of ' ULIPs ' ? Show Answer

Q101) Who amongst the following is the head of the panel set up by the Planning Commission of India to recommend measures for " Efficient Management of Public Expenditure " ? Show Answer

Q102) Which of the following states has decided to impose a cess on commercial vehicles so that a welfare fund can be created for the transport workers in distress of the state ? Show Answer

Q103) As per the new guidelines issued by SEBI, companies are required to list shares within how many days of the closure of the Initial Public Offers (IPOs) ? Show Answer

Q104) Which of the following Rates / Ratios is not covered under the Monetary and Credit Policy of the RBI ? Show Answer

Q105) Recently an Economic & Social Survey for Asian and Pacific was conducted by a UN agency. The survey finds that two economies of the region are developing very fast and are at the leading positions. One of them is China. Which is the another one ? Show Answer

Q106) As per the reports in various newspapers the Bank of Rajasthan is now merged with which of the following banks ? Show Answer

Q107) Which of the following is the body / agency set up by the Govt. of India to increase the flow of foreign investment in the country ? Show Answer

Q108) Equity schemes managed strong NAV gains, which boost their assets' was a news in some financial newspapers. What is the full form of the term NAV as used in above head lines ? Show Answer

Q109) As per reports published in various news papers, mutual fund companies showed 94 percent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 percent Show Answer

Q110) "Mutual Funds reported exceptional performance in 2009-10" was the news in major financial news papers recently. What is Mutual Funds ?
(A) A type of collective investment scheme that pools money from many investor and invest it in stocks, bonds or other money market instruments.
(B) It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else.
(C) When several banks and finanacial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, powerplants etc. the common pool is know as Mutual Fund. Show Answer