1. Indian Commercial Banks are
categorized into:
a) Public sector Banks
b)Foreign Banks
c) Private Sector Banks
d) All of the above
e) None
2. Regional Rural Banks have been
set up with the basic objectives of:
a) Providing credit to semi – urban
& urban population
b) Providing deposits facilities to
farmers
c) Providing credit & deposit
facilities to rural areas
d) providing credit, deposit and
other banking facilities to people in
rural areas
e) None
3. _____ is raised in capital markets
a) Funds through long term
securities
b) Long term loans through Govt.
securities
c) medium term loans
d) Short – term instruments
e) None
4. Interest on Government secu-
rities on fixed basis is known as:
a) Bank rate
b) Coupon
c) Prime Lending Rate
d) Bench mark PLR
e) None
5. __ was not nationalized in 1969:
a) Punjab National Bank
b) Oriental Bank of commerce
c) Bank of Baroda
d) Union Bank of India
e) None
6. In the first round 14 major banks
with a liability base of ____ were
nationalized:
a) 10 crore or more
b) 20 crore or more
c) 50 crore or more
d) 100 crore or more
e) None
7. _____ do not attract TDS:
a) Fixed deposits
b) Reinvestment depositsc) NRO SB
d) NRO FDR
e) Recurring deposits
8. SLR is maintained as a
percentage of:
a) Time liabilities
b) Demand liabilities
c) Time and Demand liabilities
d) Gross time and demand
liabilities
e) Net demand and time Liabilities
9. The maximum Statutory Liquidity
Ratio to be maintained by banks
is_____:
a) 25%
b) 30%
c) 35%
d) 40%
e) None
10. CRR funds are kept by the Banks
in ____:
a) Cash in hand at branches
b) Balance with other banks
c) Balance in a special Account with
RBI
d) Funds in the currency chest
e) None
11. An increase in CRR by RBI leads
to:
a) Decrease in deposit
b) increase in deposit
c) Increase in lendable resources
d) Decrease in lendable resources
e) None
12. When RBI reduce the CRR it
results into:
a) Decrease in deposit
b) increase in deposit
c) Increase in lendable resources
d) Decrease in lendable resources
e) None
13. What is meant by development
Oriented banking?
a) Infrastructure financing
b) Extending loans to States, which
are undevelopment
c) Taking up the task of develo-
pment of the economy by
providing support to under
privileged sections of the society
d) All the above
e) None
14. Principal functions of SIDBI:
a) Promotion of SSI
b) Finance of SSI
c) Development of SSI
d) All the above
e) None
15. ____ heads and conducts the
affairs of RBI:
a) Central Board
b) local board
c) Regional board
d) All of the above
e) None
16. RBI Provides ____ for meeting
day – to – day receipt and
expenditure mismatch to both
Central and State Governments.
a) treasury bills
b) Ways and Means advance
c) date and securities
d) All the above
e) None
17. RBI known as lender of last
resort because:
a) It has to meet the credit need of
citizens to whom no one else is
willing to lend
b) Banks lend to go to RBI as a last
resort
c) It comes to help banks in times of
crisis
d) All of the above
e) None
18. These days RBI uses Selective
credit control measures rather
infrequently because of:
a) Deregulation of functions
b) Autonomy given to banks
c) Comfortable liquidity
d) Reasonable inflation level
e) All the above
19. Which is incorrect with regard to
powers of RBI:
a) Holds cash reserve banks
b) Controls banking system through
licensing
c) Supervises Banking system
through inspection
d) None of the above
e) All
20.Intervenes in markets to
maintain the external value of the
Indian rupee:
a) Exporters
b) Importers
c) RBI
d) IMF
e) None
21. In India, forex rates are
determined by:
a) Importers b) Exporters
c) RBI d) Ministry of commerce
e) Demand and supply forces
22. Regional Rural Banks were set
up on the recommendationsof:
a) Nariman committee
b) Narasimham committee
c) Gadgil committee
d) Puri committee
e) None
23. committee, launched the
process of reforms of financial
system in India:
a) Gadgil committee
b) Nariman committee
c) Narasimham committee
d) khanna Committee
e) None
Answers:
1) d; 2) d; 3) a; 4) b; 5) b; 6) c; 7) e;
e; 9) d; 10) c;
11) d; 12) c; 13) c; 14) d; 15) a; 16) b;
17) c; 18) e; 19) d; 20) c;
21) e; 22) b; 23) c