Wednesday 9 August 2017

Banking Awareness


Q1. An FVCI can invest in an Indian company engaged in-
(a) Biotechnology
(b) Dairy industry
(c) Production of bio-fuels
(d) IT related to hardware and software development
(e) All of the above
S1. Ans.(e)
Sol. An FVCI can invest in an Indian company engaged in:-
1. Biotechnology
2. IT related to hardware and software development
3. Nanotechnology
4. Seed research and development
5. Research and development of new chemical entities in pharmaceutical sector
6. Dairy industry
7. Poultry industry
8. Production of bio-fuels
9. Hotel-cum-convention centres with seating capacity of more than three thousand.
10. Infrastructure sector.

Q2. If the shares or convertible debentures are not issued within __________ days from the date of receipt of the inward remittance or date of debit to NRE/FCNR(B)/Escrow account, the amount shall be refunded. 
(a) 210 days
(b) 150 days
(c) 180 days
(d) 120 days
(e) 90 days
S2. Ans.(c)
Sol. If the shares or convertible debentures are not issued within 180 days from the date of receipt of the inward remittance or date of debit to NRE/ FCNR (B)/ Escrow account, the amount shall be refunded. Further, Reserve Bank may on an application made to it and for sufficient reasons permit an Indian Company to refund/ allot shares for the amount of consideration received towards issue of security if such amount is outstanding beyond the period of 180 days from the date of receipt.
Q3. FCCB is a type of corporate bond issued by an Indian company in an overseas market in a currency different from that of the issuer. FCCB stands for-
(a) Foreign Currency Convertible Board 
(b) Foreign Currency Convertible Banking 
(c) Foreign Currency Convertible Bond
(d) Foreign Currency Convertible Base 
(e) Foreign Currency Convertible Basel
S3. Ans.(c)
Sol. A foreign currency convertible bond (FCCB) is a type of corporate bond issued by an Indian company in an overseas market in a currency different from that of the issuer. Investors have the option of redeeming their investment on maturity or converting the bonds into equity any time during the currency of the bond.
Q4. What is the meaning of "C" in ECB?
(a) Concourse
(b) Cashless
(c) Common
(d) Conclusion
(e) Commercial
S4. Ans.(e)
Sol. ECB stands for External Commercial Borrowings.
Q5. ECB can be raised under Track-II for general corporate purpose (including working capital). The minimum average maturity period will be-
(a) 05 years
(b) 10 years
(c) 15 years
(d) 20 years
(e) 25 years
S5. Ans.(b)
Sol. ECB can be raised under Track II for general corporate purpose (including working capital). The minimum average maturity period will be 10 years.
Q6. According to accepting public deposits, NBFCs can be classified into ____ broad categories.
(a) Two
(b) Three
(c) Four
(d) One
(e) Five
S6. Ans.(a)
Sol. According to accepting public deposits, NBFCs can be classified into two broad categories, viz.,
(i) NBFCs accepting public deposit (NBFCs-D)
(ii) NBFCs not accepting/holding public deposit (NBFCs-ND).

Q7. Which of the following is the country’s largest custodian and depository participant?
(a) CIBIL
(b) SEBI
(c) NABARD
(d) SHCIL
(e) None of the given options is true

S7. Ans.(d)
Sol. Stock Holding Corporation of India Ltd (SHCIL), India’s largest custodian and depository participant.

Q8. StockHolding was incorporated as a Public Limited Company in- 
(a) 1995
(b) 1992
(c) 1986
(d) 1981
(e) 1979
S8. Ans.(c)
Sol. StockHolding was incorporated as a Public Limited Company in 1986. It has been jointly promoted by leading Banks and Financial Institutions. StockHolding is a subsidiary of IFCI Limited. The equity capital of StockHolding is presently held by LIC, GIC, IFCI Ltd., SU-UTI, NIA, NIC, UIC, and TOICL, all leaders in their respective fields of business.

Q9. StockHolding is a subsidiary of-
(a) IFCI Limited
(b) RBI
(c) Government of India
(d) SIDBI
(e) IDBI Limited
S9. Ans.(a)
Sol. StockHolding was incorporated as a Public Limited Company in 1986. It has been jointly promoted by leading Banks and Financial Institutions. StockHolding is a subsidiary of IFCI Limited.

Q10. Which of the following is the parent organisation of UPI?
(a) RBI
(b) GOI
(c) NPCI
(d) PMMY
(e) SEBI
S10. Ans.(c)
Sol. National Payments Corporation of India (NPCI) is the parent organisation of UPI (Unified Payment Interface).
Q11. Which among the following sectors contributes most to the saving in India?
(a) Banking and financial sector
(b) Private corporate sector
(c) Export sector
(d) Household sector
(e) None of the given options is true
S11. Ans.(d)
Sol. Household contributes most to the saving in India.
Q12. The EXIM bank of India was established in-
(a) 1964
(b) 1970
(c) 1982
(d) 1984
(e) 1992
S12. Ans.(c)
Sol. Established by the Government of India, EXIM Bank has commenced operations in 1982 under the Export-Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit Agencies.

Q13. In Banking terminology, NPA means-
(a) Non-Promise Account
(b) Non-Personal Account
(c) Non-Performing Asset
(d) Net-performing Asset
(e) Non-Performing Agency
S13. Ans.(c)
Sol. NPA stands for Non-Performing Asset.
Q14. Which of the following schemes has been launched for providing health services in rural areas?
(a) Operation Flood
(b) Look East
(c) SJSRY
(d) ASHA
(e) MGNREGA
S14. Ans.(d)
Sol. The ASHA or the Accredited Social Health Activist. ASHA will be the first port of call for any health related demands to access health services. ASHA will be a health activist in the community who will create awareness on health and its social determinants and mobilize the community towards local health planning and increased utilization and accountability of the existing health services in Rural areas.
Q15. Which of the following is NOT a banking related term?
(a) Radiation
(b) Outstanding Amount
(c) Explicit Guarantee
(d) Benchmark Prime Lending Rate
(e) None of the given options is true
S15. Ans.(a)
Sol. In physics, radiation is the emission or transmission of energy in the form of waves or particles through space or through a material medium.

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