FINAL ANSWER KEY
Paper: Elements of Banking - I PAPER
Medium of Question: English
Date of Examination 07-03-2019
Question1:-NABARD was started in the year
A:-1949
B:-1955
C:-1975
D:-1982
Correct Answer:- Option-D
Question2:-Unit Banking is originated in
A:-India
B:-USA
C:-UK
D:-Australia
Correct Answer:- Option-B
Question3:-Who took over the functions of ARDC and functions of Agriculture credit Department of RBI? A:-NABARD
B:-Regional Rural Banks
C:-State Bank of India
D:-Finance Ministry
Correct Answer:- Option-A
Question4:-Participating Banking is
A:-Social Banking
B:-Online Banking
C:-Consortium Banking
D:-Innovative Banking
Correct Answer:- Option-C
Question5:-Scheduled Banks are included is the ________ Schedule of the RBI Act of 1934. A:-First
B:-Second
C:-Third
D:-Fourth
Correct Answer:- Option-B
Question6:-Which one is not a nationalized bank?
A:-Punjab National Bank
B:-Bank of Baroda
C:-South Indian Bank
D:-Indian Overseas Bank
Correct Answer:- Option-C
Question7:-Essential of Sound Banking System
A:-Safety
B:-Liquidity
C:-Stability
D:-All of these
Correct Answer:- Option-D
Question8:-Reserve Bank of India nationalized in the Year
A:-1935
B:-1947
C:-1949
D:-1956
Correct Answer:- Option-C
Question9:-Number of Banks Nationalized in the year 1980 by Govt. of India
A:-14
B:-10
C:-8
D:-6
Correct Answer:- Option-D
Question10:-IDBI was Separated from RBI during the year
A:-1976
B:-1982
C:-1978
D:-1964
Correct Answer:- Option-A
Question11:-IFCI (Industrial Financial Corporation of India) is related to
A:-Agricultural
B:-Industrial
C:-Housing
D:-None of these
Correct Answer:- Option-B
Question12:-Regional Rural Banks are established based on the report of
A:-Sivaraman Commitee
B:-Narasimham Committe
C:-Hazari Committee
D:-Maclagan committee
Correct Answer:- Option-B
Question13:-DICGE is under the control of
A:-Finance Ministry
B:-SBI
C:-RBI
D:-Agriculture Ministry
Correct Answer:- Option-C
Question14:-The Bank formed on 1-7-1955 (1st July Nineteen Fifty Five) A:-RRB's
B:-RBI
C:-SBI
D:-NABARD
Correct Answer:- Option-C
Question15:-Which one is not a Private Bank?
A:-HDFC Bank Ltd
B:-ICICI Banking Corporation
C:-Indus Ind-Bank Ltd
D:-Syndicate Bank
Correct Answer:- Option-D
Question16:-The Minimum share Capital for registering a Private Bank A:-Rs. 5 cores
B:-Rs. 25 cores
C:-Rs. 50 cores
D:-Rs. 100 cores
Correct Answer:- Option-D
Question17:-Sec. ...... of B.R Act 1949 defines 'Banking'
A:-5(a)
B:-5(b)
C:-5(c)
D:-5(d)
Correct Answer:- Option-B
Question18:-Sec 3 of B.R Act 1949 deals with
A:-Definition of Banking Company
B:-Business of Banking Company
C:-Act to apply to Co-operative Societies in certain cases
D:-None of these
Correct Answer:- Option-C
Question19:-The bottom of three tire system in Co-Operative Banks A:-Coop credit Society
B:-Central Coop Bank
C:-Apex Coop Bank
D:-None of these
Correct Answer:- Option-A
Question20:-Statutory Liquidity Ratio (SLR) is fixed by which of the following Act A:-Sec. 40 of RBI Act
B:-Sec. 20 of NI act
C:-Sec. 63 of Co-op Societies Act
D:-Sec. 24 of B.R Act
Correct Answer:- Option-D
Question21:-Head Quarters of EXIM Bank
A:-Delhi
B:-Chennai
C:-Mumbai
D:-Kolkata
Correct Answer:- Option-C
Question22:-The biggest commercial bank in India is
A:-RBI
B:-HDFC
C:-SBI
D:-United Commercial Bank
Correct Answer:- Option-C
Question23:-The first joint stock bank in India
A:-Bank of Baroda
B:-Dena Bank
C:-Imperial Bank of India
D:-Oudh Commercial Bank
Correct Answer:- Option-D
Question24:-Interest on deposit of co-operative banks in Kerala are fixed by A:-Kerala Finance Ministry
B:-Registrar of Co-op. Societies
C:-Secretary, Co-operation Department
D:-Reserve Bank of India
Correct Answer:- Option-B
Question25:-The present Reserve Bank Governor
A:-Raghuram Rajan
B:-Urjith Patel
C:-Shakthikanta Das
D:-None of these
Correct Answer:- Option-C
Question26:-CRR (Cash Reserve Ratio) can be raised or lowered by ________ in India. A:-Any bank
B:-SBI
C:-Central
D:-RBI
Correct Answer:- Option-D
Question27:-Commercial banks can be either unit banking or _________ banking type. A:-Central
B:-Rural
C:-Specialized
D:-Branch
Correct Answer:- Option-D
Question28:-In India the Banker to Government is
A:-RBI
B:-SBI
C:-SBT
D:-ICICI
Correct Answer:- Option-A
Question29:-From 1st July 1956 India follows ________ system of note issue.
A:-Fixed Monitory
B:-Minimum Reserve
C:-Proportional Reserve
D:-Maximum Fiduciary
Correct Answer:- Option-B
Question30:-EXIM Bank was started is the year
A:-1975
B:-1980
C:-1982
D:-1988
Correct Answer:- Option-C
Question31:-RTGS system was introduced during
A:-2005
B:-2004
C:-2012
D:-2011
Correct Answer:- Option-B
Question32:-Payment transactions emanating from a participant bank are processed by the RTGS system strictly on ________ A:-FIFO basis
B:-Priority basis
C:-LIFO basis
D:-None of these
Correct Answer:- Option-A
Question33:-The World's first ATM was installed by
A:-ICICI Bank
B:-Barclays Bank
C:-CITI Bank
D:-HSBC Bank
Correct Answer:- Option-B
Question34:-Banks are required to maintain cash reserve on the basis of
A:-NDTL
B:-CRR
C:-CRAR
D:-None of these
Correct Answer:- Option-A
Question35:-The main functions of SEBI is
A:-To regulate securities market
B:-To protect the development of securities market
C:-To protect the interest of investors in securities
D:-All the above
Correct Answer:- Option-D
Question36:-Indian banking system predominantly of the type of
A:-Branch banking
B:-Chain Banking
C:-Unit Banking
D:-None of these
Correct Answer:- Option-A
Question37:-Using ATMs we get service like
A:-Cash deposits
B:-Cash withdrawals
C:-Balance enquiry
D:-All the above
Correct Answer:- Option-D
Question38:-The newly formed Bank in Kerala by merging both the NMGB and SMGB in known as A:-North and South Gramin Bank
B:-Kerala Gramin Bank
C:-Malabar Gramin Bank
D:-None of these
Correct Answer:- Option-B
Question39:-NPA stands for
A:-Number of private accounts
B:-Number of performing assets
C:-Non performing application
D:-None of these
Correct Answer:- Option-D
Question40:-Number of District Cooperative Banks in Kerala
A:-12
B:-13
C:-14
D:-15
Correct Answer:- Option-C
Question41:-A system under which the Central Bank limit, the total amount of loan and advance by commercial bank is
A:-Credit control
B:-Rationing credit
C:-Credit creation
D:-Credit limit
Correct Answer:- Option-B
Question42:-A market in which short term bills are discounted and re- discounted is called __________ market. A:-Capital
B:-Bill
C:-Money
D:-Commodity
Correct Answer:- Option-C
Question43:-Collateral Securities means ___________ securities.
A:-Personal
B:-Government
C:-Tangible
D:-Bank
Correct Answer:- Option-C
Question44:-The ability of a Bank to produce Cash on demand is
A:-Safety
B:-Liquidity
C:-Security
D:-None of these
Correct Answer:- Option-B
Question45:-The Central Bank is called _________ Bank.
A:-Creditors
B:-Debtors
C:-Bankers
D:-None of these
Correct Answer:- Option-C
Question46:-Which Bank is otherwise called World Bank?
A:-RBI
B:-IMF
C:-ADB
D:-IBRD
Correct Answer:- Option-D
Question47:-MICR Code line indicates
A:-Cheque of number
B:-City code
C:-Bank code and Branch code
D:-All of these
Correct Answer:- Option-C
Question48:-Employees of District Co. Op. Bank are recruited by
A:-Co. op. Service Exam Board
B:-Bank Recruitment Board
C:-PSC
D:-RCS
Correct Answer:- Option-C
Question49:-Banking Sector falls under
A:-Primary sector
B:-Secondary sector
C:-Service sector
D:-None of these
Correct Answer:- Option-C
Question50:-Bank guarantees are covered by
A:-BR Act
B:-RBI Act
C:-NI Act
D:-Indian Contract Act
Correct Answer:- Option-D
Question51:-Promissory note is defined in Section of _________ negotiable instrument Act 1981.
A:-4
B:-5
C:-6
D:-7
Correct Answer:- Option-A
Question52:-A _________ is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. A:-Cheque
B:-Promissory Note
C:-Bailment
D:-None of these
Correct Answer:- Option-A
Question53:-A bill of exchange is an _________ order.
A:-Conditional
B:-Unconditional
C:-Oral
D:-None of these
Correct Answer:- Option-B
Question54:-Section 123 of N1 Act says about
A:-Cheque crossed generally
B:-Cheque crossed specially
C:-Crossing after issue
D:-None of these
Correct Answer:- Option-A
Question55:-Maximum punishment in case of dishonor of cheque as per Sec 138 of N1 Act
A:-Imprisonment for 6 months or fine or with both
B:-Imprisonment for 1 year or fine or with both
C:-Imprisonment for 2 years or fine or with both
D:-Imprisonment for 3 years or fine or with both
Correct Answer:- Option-C
Question56:-The Maker of a bill of exchange is called the
A:-Drawer
B:-Drawee
C:-Payee
D:-None of these
Correct Answer:- Option-A
Question57:-________ is a direction given to the paying banker not to make the payment across the counter. A:-ATM
B:-Crossing of Cheque
C:-Teller System
D:-Garnishee order
Correct Answer:- Option-B
Question58:-The person named in the instrument to whom or to whose order the money is by the instrument to be paid is called the A:-Payee
B:-Drawer
C:-Draweed Endorser
D:-None of these
Correct Answer:- Option-A
Question59:-A bill of exchange not accompanied by any document is a _________ bill.
A:-Trade
B:-Discount
C:-Clean
D:-Accommodation
Correct Answer:- Option-C
Question60:-Complaint under 138 of N1 Act should be filed before
A:-Police Station
B:-First Class Judicial Magistrate Court
C:-Munsiff Court
D:-None of these
Correct Answer:- Option-B
Question61:-Parties in promissory note
A:-Two
B:-Three
C:-Four
D:-Only one
Correct Answer:- Option-A
Question62:-When accepting deposits the relationship of bank with customer is
A:-Debtor-Creditor
B:-Creditor-Debtor
C:-Agent-Principal
D:-Bailee-Bailer
Correct Answer:- Option-A
Question63:-A court order attaching funds of judgement debtor obtained by judgement creditor is
A:-Mandate
B:-Power of Attorney
C:-Garnishee order
D:-None of these
Correct Answer:- Option-C
Question64:-Maximum number of endorsement in a cheque
A:-One
B:-Five
C:-Three
D:-No Limit
Correct Answer:- Option-D
Question65:-Crossing of cheque can be cancelled by
A:-Holder
B:-Holder is due course
C:-Drawee
D:-Drawer
Correct Answer:- Option-D
Question66:-A cheque issued with a future date is called
A:-Post-dated
B:-Stale
C:-Anti-dated
D:-Mutilated
Correct Answer:- Option-A
Question67:-In joint deposit account nomination facilities are available to
A:-Maximum three Nomination
B:-Only one Nomination
C:-Two Nominations
D:-None of these
Correct Answer:- Option-B
Question68:-A person is absconding for a continuous period of seven years is called
A:-Missing
B:-Civil Death
C:-Legal Death
D:-None of these
Correct Answer:- Option-C
Question69:-Cash credit account is
A:-Working capital Finance
B:-Project Finance
C:-Long term loan for acquiring assets
D:-None of these
Correct Answer:- Option-A
Question70:-How many days notice is to be given to the drawer for payment of money of the returned cheque? A:-15 days
B:-30 days
C:-45 days
D:-60 days
Correct Answer:- Option-A
Question71:-Collecting bankers protection is given in section __________ N1 Act.
A:-Section 10
B:-Section 85
C:-Section 15
D:-Section 131
Correct Answer:- Option-D
Question72:-What is CBS?
A:-Coordinate banking solution
B:-Corporate Banking solution
C:-Core banking solution
D:-Competitive banking solution
Correct Answer:- Option-C
Question73:-A place where representatives of banks meet to exchange cheques
A:-Clearing house
B:-Bankers club
C:-Bankers Forum
D:-None of these
Correct Answer:- Option-A
Question74:-A bank provides over draft facility only in
A:-Saving Bank
B:-Recurring deposit
C:-Current Account
D:-None of these
Correct Answer:- Option-C
Question75:-Crossing of cheque can be done by
A:-Any holder
B:-Payee Only
C:-Drawer Only
D:-None of these
Correct Answer:- Option-A
Question76:-Bailor -bailee relationship is applicable in
A:-Safe deposit locker
B:-Demand draft issued by bank
C:-Keeping articles in safe custody with bank
D:-All of the above
Correct Answer:- Option-C
Question77:-Objective of KYC
A:-To ensure customer identification
B:-To monitor transaction of suspicious nature
C:-To categories the customer
D:-Only (1) and (2)
Correct Answer:- Option-D
Question78:-San re course means
A:-Without fear
B:-Without liability to me
C:-Without physical toner
D:-Without liability to payee
Correct Answer:- Option-B
Question79:-Banking ombudsman is appointed by
A:-SBI
B:-RBI
C:-Govt. of India
D:-None of these
Correct Answer:- Option-B
Question80:-Natural guardian of minor is
A:-Father
B:-Mother
C:-Court
D:-None of these
Correct Answer:- Option-A
Question81:-Bank is a factory of
A:-Deposit
B:-Credit
C:-Interest
D:-None of these
Correct Answer:- Option-B
Question82:-Bank guarantees are issued by
A:-Any banks
B:-Only specified Bank
C:-Only bank permitted to do this type of business
D:-RBI
Correct Answer:- Option-A
Question83:-A mutual fund is set up in the form of
A:-By an act of parliament
B:-A company under Company Act
C:-A trust
D:-None of these
Correct Answer:- Option-C
Question84:-Banker’s lien is not applicable in case of
A:-Safe custody
B:-Securities left negligently
C:-Debts not due
D:-All of above
Correct Answer:- Option-D
Question85:-Mandate is a __________ agreement.
A:-Stamped
B:-Non stamped
C:-Memorandum
D:-Letter
Correct Answer:- Option-B
Question86:-A cheque which is not presented for payment within reasonable time period time is called A:-Post dated
B:-Stale Cheque
C:-Ante-dated
D:-Mutilitated cheque
Correct Answer:- Option-B
Question87:-Who is the present Chairman of SEBI?
A:-UK Sinha
B:-Prakash Bakshi
C:-Ajay Tyagi
D:-Dr. Duvvuri Subbarao
Correct Answer:- Option-C
Question88:-For the revival and strengthening of the Urbon Cooperative banking sector, RBI formed A:-TAFCUB
B:-NAFCUB
C:-NAFSCOB
D:-None of these
Correct Answer:- Option-A
Question89:-The full form of TAN is
A:-Tax Deduction Account Number
B:-Tax Account Number
C:-Tax Account Net Work
D:-None of these
Correct Answer:- Option-A
Question90:-Find out the income which is falling under service tax for Co-operatives A:-Locker rent
B:-Folio Charges
C:-D D Commission
D:-All of the above
Correct Answer:- Option-A
Question91:-District Cooperative Banks were registered after
A:-1912 Cop Societies Act
B:-Maclagan committee Report
C:-1904 Coop credit Societies Act
D:-None of these
Correct Answer:- Option-B
Question92:-The fixed deposit of a Cooperative bank is
A:-Current liability
B:-Demand liability
C:-Contingent liability
D:-None of these
Correct Answer:- Option-B
Question93:-Average credit outstanding divided by average deposits multiplied by hundred is A:-Cost of deposit
B:-Yield on loans
C:-Cost of loans
D:-Credit deposit ratio
Correct Answer:- Option-D
Question94:-Financial margin plus Miscellaneous income minus cost of management and risk cost is A:-Margin
B:-Financial margin
C:-Break even level
D:-Net margin
Correct Answer:- Option-D
Question95:-In the formula for calculation of CRAR the numerator is
A:-Capital
B:-Capital funds
C:-Share capital
D:-Share capital and reserves
Correct Answer:- Option-B
Question96:-Simple interest @ 12% for Rs. 75,000/- for 2 years is
A:-Rs. 7,500/-
B:-Rs. 15,000/-
C:-Rs. 9,000/-
D:-Rs. 18,000/-
Correct Answer:- Option-D
Question97:-Current investment should be valued of
A:-Lower of cost price or market value
B:-Average value
C:-Higher value
D:-None of these
Correct Answer:- Option-A
Question98:-In the case of an Insured Cooperative bank an order of winding up may be made only with the previous sanction in writing by A:-NABARD
B:-Central Government
C:-NCDC
D:-RBI
Correct Answer:- Option-D
Question99:-The present Finance Minister of India
A:-Arun Jaitely
B:-Venkayya Naidu
C:-Raj Nadh Singh
D:-None of these
Correct Answer:- Option-A
Question100:-_________ is a post paid card.
A:-ATM
B:-Pan Card
C:-Debit Card
D:-Credit Card
Correct Answer:- Option-D