Q1. Which of the following types of cards is free from credit risk?
(a) Credit card
(b) Debit Card
(c) Charge Cards
(d) All of the above
(e) Both (c) and (d)
S1. Ans.(b)
Sol. A debit cards a safe, convenient, risk-free alternative to cash and has no credit risks attached.
(a) Capitalist Economy
(b) Mixed Economy
(c) Socialist Economy
(d) Traditional Economy
(e) None of the given options is true
S2. Ans.(d)
Sol. Definition of traditional economy: A type of economy that still uses various means of social support. Some feel that this may be out of date and thus refer to it as a traditional economy.
Sol. Definition of traditional economy: A type of economy that still uses various means of social support. Some feel that this may be out of date and thus refer to it as a traditional economy.
Q3. In the field of banking, what does ADF stand for?
(a) Additional Dearness Allowance
(b) Automated Data Flow
(c) Additional Deposit Allowance
(d) Automated Deposit Allowance
(e) None of the given options is true
S3. Ans.(b)
Sol. The Automated Data Flow (ADF) is a unique initiation by RBI aimed at the purpose of meeting the needs for accurate and consistent flow of data. Automated Data Flow ensures that the data submitted from the banks to Reserve Bank of India is correct and consistent without any kind of manual intervention.
Sol. The Automated Data Flow (ADF) is a unique initiation by RBI aimed at the purpose of meeting the needs for accurate and consistent flow of data. Automated Data Flow ensures that the data submitted from the banks to Reserve Bank of India is correct and consistent without any kind of manual intervention.
Q4. What is the duration of Public Provident Fund (PPF) account?
(a) 3 years
(b) 5 years
(c) 9 years
(d) 15 years
(e) 18 years
S4. Ans.(d)
Sol. A PPF account matures in 15 years, but you can extend the tenure in blocks of five years after maturity. The balance continues to earn interest at the normal rate. The minimum investment of Rs 500 has to be maintained even for accounts extended beyond 15 years.
Sol. A PPF account matures in 15 years, but you can extend the tenure in blocks of five years after maturity. The balance continues to earn interest at the normal rate. The minimum investment of Rs 500 has to be maintained even for accounts extended beyond 15 years.
Q5. Under which Act are the KYC norms implemented-
(a) SEBI Act, 1992
(b) Foreign Contribution and Regulation Act, 1976
(c) Prevention of Money Laundering Act, 2002
(d) Banking Regulation Act, 1949
(e) None of the given options is true
S5. Ans.(c)
Sol. KYC guidelines/instructions are issued under under Prevention of Money laundering Act PMLA, 2002.
Sol. KYC guidelines/instructions are issued under under Prevention of Money laundering Act PMLA, 2002.
Q6. Which of the following is a receipt, declaring ownership of shares of a foreign company and it can be listed in India and traded in rupees?
(a) ADR
(b) GDR
(c) IDR
(d) EDR
(e) None of the given options is true
S6. Ans.(c)
Sol. An IDR (Indian Depository Receipts)is a receipt, declaring ownership of shares of a foreign company. These receipts can be listed in India and traded in rupees.
Sol. An IDR (Indian Depository Receipts)is a receipt, declaring ownership of shares of a foreign company. These receipts can be listed in India and traded in rupees.
Q7. What is the term for a bank without any branch network that offers its services remotely?
(a) Internet only Banks
(b) Direct Bank
(c) Lending Institution
(d) Indirect Bank
(e) Online Bank
S7. Ans.(b)
Sol. A direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs (often through interbank network alliances), mail and mobile. By eliminating the costs associated with bank branches, direct banks can make significant savings which they may pass on to clients via higher interest rates or lower service charges.
Sol. A direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs (often through interbank network alliances), mail and mobile. By eliminating the costs associated with bank branches, direct banks can make significant savings which they may pass on to clients via higher interest rates or lower service charges.
Q8. The opening of branches by banks is governed by the provisions of Section _______ of the Banking Regulation Act, 1949.
(a) Section 44
(b) Section 18
(c) Section 27
(d) Section 32
(e) Section 23
S8. Ans.(e)
Sol. The opening of branches by banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place of business in India or abroad or change otherwise than within the same city, town or village, the location of the existing place of business without the prior approval of the Reserve Bank of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/licence from Rural Planning and Credit Department (RPCD) of RBI before opening of new branches/offices.
Sol. The opening of branches by banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place of business in India or abroad or change otherwise than within the same city, town or village, the location of the existing place of business without the prior approval of the Reserve Bank of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/licence from Rural Planning and Credit Department (RPCD) of RBI before opening of new branches/offices.
Q9. For expanding access to banking services, the RBI has advised banks to open branches with minimum infrastructure support of 8 to 10BC units at a reasonable 3-4km. Such branches are known as _______
(a) White Label ATMs
(b) Ultra Small Branches
(c) Banking Kiosks
(d) CBS Terminals
(e) ICT Hubs
S9. Ans.(b)
Sol. Ultra Small Branches may be set up between the base branch and BC locations so as to provide support to about 8-10 BC Units at a reasonable distance of 3-4 kilometres. These could be either newly set up or by conversion of the BC outlets. Such Ultra Small Branches should have minimum infrastructure such as a Core Banking Solution (CBS) terminal linked to a pass book printer and a safe for cash retention for operating large customer transaction and would have to be managed full time by bank officers/employees.
Sol. Ultra Small Branches may be set up between the base branch and BC locations so as to provide support to about 8-10 BC Units at a reasonable distance of 3-4 kilometres. These could be either newly set up or by conversion of the BC outlets. Such Ultra Small Branches should have minimum infrastructure such as a Core Banking Solution (CBS) terminal linked to a pass book printer and a safe for cash retention for operating large customer transaction and would have to be managed full time by bank officers/employees.
Q10. Which among the following conditions, Regional Rural Banks (RRBs) should fulfil to become eligible to open new branch/es?
(a) No default in maintenance of SLR and CRR during the last two years
(b) Operational profits are being made
(c) Net worth shows improvement
(d) Net NPA ratio does not exceed 8 percent
(e) All of the above conditions should fulfil by RRBs
S10. Ans.(e)
Sol. RRBs should fulfill the following conditions, to become eligible to open new branch/es:
i. No default in maintenance of SLR and CRR during the last two years;
ii. Operational profits are being made;
iii. Net worth shows improvement;
iv. Net NPA ratio does not exceed 8 per cent.
Sol. RRBs should fulfill the following conditions, to become eligible to open new branch/es:
i. No default in maintenance of SLR and CRR during the last two years;
ii. Operational profits are being made;
iii. Net worth shows improvement;
iv. Net NPA ratio does not exceed 8 per cent.
Q11. According to the Income Tax Act of 1961, the age of Super Senior Citizens should be-
(a) 60 years
(b) 70 years
(c) 80 years
(d) 75 years
(e) 65 years
S11. Ans.(c)
Sol. According to the Income Tax act of 1961, the age of Super senior Citizens is 80 years.
Sol. According to the Income Tax act of 1961, the age of Super senior Citizens is 80 years.
Q12. Part of company’s earning or profit which is paid out to shareholders is known as _______
(a) Premium
(b) Dividend
(c) Bonus
(d) Sum Assured
(e) Return
S12. Ans.(b)
Sol. A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest it in the business (called retained earnings) and pay a fraction of the profit as a dividend to shareholders.
Sol. A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest it in the business (called retained earnings) and pay a fraction of the profit as a dividend to shareholders.
Q13. Which of the following economic concepts is categorised on the basis of Current Account or Capital Account or both?
(a) Balance of Payments
(b) Value of the food grain stock of a country
(c) Gross National Product
(d) Gross National Income (GNI)
(e) Total Collection of Direct Taxes in a year
S13. Ans.(a)
Sol. A Balance of payments statement is a summary of a nation’s total economic transactions undertaken on international account. It is usually composed of two sections:-
1. Current Account
2. Capital Account
Sol. A Balance of payments statement is a summary of a nation’s total economic transactions undertaken on international account. It is usually composed of two sections:-
1. Current Account
2. Capital Account
Q14. When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called-
(a) Revenue Deficit
(b) Budgetary Deficit
(c) Zero Budgeting
(d) Trade Gap
(e) Balance of Payment Problem
S14. Ans.(b)
Sol. Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government. If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.
Sol. Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government. If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.
Q15. Sukanya Samriddhi Account can be opened up to the age of ________ years only from the date of birth.
(a) Five years
(b) Four years
(c) Six years
(d) Eight years
(e) Ten years
S15. Ans.(e)
Sol. Sukanya Samriddhi Account can be opened up to age of 10 years only from the date of birth.
Sol. Sukanya Samriddhi Account can be opened up to age of 10 years only from the date of birth.
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