Banking and Financial Awareness for IBPS/BOM Exams

Q1. RBI revised premature deposit rules of which type of accounts?
(a) Kiddy accounts
(b) Current accounts
(c) Large value fixed deposit accounts
(d) Dollar savings accounts
(e) Big size savings accounts

Q2. FPO means?
(a) Follow on Public Offer
(b) First Public Offer
(c) Follow on Private Offer
(d) Firm on Public Offer
(e) Follow on Public Operations

Q3. The Reserve Bank hiked the limit for foreign investment in Asset Reconstruction Companies (ARCs) from the earlier cap of 49 percent to?
(a) 74 %
(b) 47 %
(c) 57 %
(d) 72 %
e) None of the above

Q4. What is an Indian Depository Receipt?
(a) A deposit account with a Public Sector Bank
(b) A depository account with any of depositories
(c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
(d) An instrument in the form of deposit receipt issued by Indian depositories
(e) None of the above

Q5. The first Indian bank to open a branch outside India in London in 1946?
(a) SBI
(b) PNB
(c) BOB
(d) Canara Bank
(e) BOI

Q6. Which of the following Committee recommended a separate Act, for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act: 
(a) Rangarajan Committee  
(b) T.R. Andhyarajuna Committee
(c) Narashimham Committee 
(d) Nayak Committee
(e) None of the above

Q7. The essential features of securitization are?   
(a) Acquisition of Financial Assets by a Securitisation or Reconstruction Company 
(b) The Assets may be NPA or standard 
(c) On sale the Assets go out of the Books of the Originator 
(d) All of the above
(e) None of the above

Q8. What are the Rights available to a secured creditor? 
(a) To sell the Assets 
(b) File application with DRT for recovery of full or remaining dues 
(c) To proceed against the guarantor 
(d) All of the above
(e) None of the above

Q9. The significance of index linked bonds is? 
(a) It provides protection against inflation rate rise 
(b) It is inbuilt in the process 
(c) Either (a) or (b)     
(d) Both (a) and (b)
(e) None of the above

Q10. Why the corporate prefer to issue debt paper than to Bank credit? 
(a) The cost of debt paper is much lower
(b) The procedure is easy 
(c) Both (a) and (b)    
(d) Either (a) or (b)   
(e) None of the above

Q11. What is 'Net Interest Margin' of a Bank?
(a) Margin of Interest earned on Trading in Govt Securities
(b) Difference between the Base Interest Rate and the Average Lending Rate
(c) Difference between the interest income and the amount of interest paid out
(d) Difference between Interest on Term Loans and Interest on Cash Credits
(e) None of the above

Q12. One of the Primary functions of IMF is to provide short term capital assistance to member countries through SDR (Special Drawing Rights). What is NOT true about SDR?
(a) Currency code of SDR is XDR
(b) SDR is the Unit of Account of IMF
(c) Asian Development Bank (ADB) also uses SDR as its Currency
(d) SDR can be exchanged only for US Dollar, British Pound, and Euro & Japanese Yen
(e) None of the above

Q13. The government has allowed issue of Long-Term Bonds for Insurance Companies and others upto- 
(a) 10 years
(b) 15 years 
(c) 25 years    
(d) 30 years
(e) None of the above

Q14. In the case of advance against fixed deposit receipts issued by banks-
(a) the deposit receipts are assigned to the bank 
(b) the deposit receipts are hypothecated to the bank 
(c) the deposit receipts are mortgaged to the bank 
(d) a lien is created in favour of the bank on the deposit receipts
(e) None of the above 

Q15. Negative lien is........? 
(a) a right of the bank to take possession of all the assets hypothecated to the bank in the case of default by the borrower 
(b) a special type of lien on the shares of public limited companies 
(c) a declaration of the borrower to the effect that his assets are free from encumbrance and that he shall not encumber or dispose them of without bank’s permission 
(d) All of the above
(e) None of the above


S1. Ans.(a)
S2. Ans.(a)
S3. Ans.(d)
S4. Ans.(a)
S5. Ans.(d)
S6. Ans.(d)
S7. Ans.(a)
S8. Ans.(d)
S9. Ans.(d)
S10. Ans.(a)
S11. Ans.(c)
S12. Ans.(b)
S13. Ans.(a)
S14. Ans.(b)
S15. Ans.(d)

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