KRISHNA MOHAN

Friday 28 July 2017

Banking Awareness,

Q1. Which of the following is the Regulator of the credit rating agencies in India?

(a) RBI

(b) SBI

(d) SEBI

(e) None of the given options is true

Q2. The logo of Bank of Baroda is known as?

(a) Sun of Bank of Baroda

(b) Baroda sun

(d) Sunlight of Bank of Baroda

(e) None of the given options is true

Q3. One of the major challenges banking industries is facing these days is money laundering. Which of the following acts/norms are launched by the banks to prevent money laundering in general?

(a) Know your customer norms

(b) Banking Regulation Act

(d) All of the above

(e) None of the given options is true

Q4. Lots of Banks in India these days are offering M-Banking Facility to their customers. What is ‘M’ in ‘M-Banking?

(a) Money

(b) Marginal

(d) Mobile

(e) None of the given options is true

Q5. In India, which of the following agency is responsible for announcing the Foreign Trade Policy?

(a) RBI

(b) EXIM-Bank

(d) Ministry of Commerce and Industry

(e) None of the given options is true

Q6. Many a time we read a term MSS in relation to banking transactions. What is the full form of MSS?

(a) Money Stabilization Scheme

(b) Market Stabilisation Scheme

(d) Money Stabilization Service

(e) None of the given options is true

Q7. RBI’s open market operation transactions are carried out with a view to regulate?

(a) Liquidity in the economy

(b) Prices of essential commodities

(d) All of the above

(e) None of the given options is true

Q8. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy means?

(a) Sale or purchase of Govt. securities

(b) Issuance of different types of bonds

(d) All of the above

(e) None of the given options is true

Q9. Cheap Money means?
(a) Low Level of Income
(b) Low Level of Savings
(c) Excess of Black Money
(d) Low Rate of Interest
(e) None of the given options is true

Q10. The process of the total valuation of the financial capital assets of a country is technically known as?

(a) Market Capitalization

(b) Gross Domestic Product

(d) Gross Domestic Resources

(e) None of the given options is true

Q11. The Reserve Bank of India (RBI) keeps on modifying various rates/ratios to keep the flow of liquidity in the market in balanced situation. Which of the following rates/ratios/indexes is NOT directly controlled by the RBI?

(a) Cash Reserve Ratio (CRR)

(b) Repo Rate (RR)

(d) Wholesale Price Index (WPI)

(e) None of the given options is true

Q12. An agreement between two nations or a group of nations which establishes unimpeded exchange and flow of goods and services between/among trade partners regardless of national boundaries is called?

(a) Import Free Agreement

(b) Free Trade Agreement

(d) All of the above

(e) None of the given options is true

Q13. In the capital market, the term arbitrage is used with reference to?

(a) Purchase of securities to cover the sale

(b) Sale of securities to reduce the loss on purchase

(c) Simultaneous purchase and sale of securities to make profits from price

(d) All of the above

(e) None of the given options is true

Q14. The stance of RBI monetary policy is?

(a) Inflation control with adequate liquidity for growth

(b) Improving credit quality of the Banks

(d) All of the above

(e) None of the given options is true

Q15. Currency Swap is an instrument to manage?

(a) Currency risk

(b) Interest rate risk

(d) Cash flows in different currency

(e) None of the given options is true

Banking Awareness

Q1. Which of the following organisation release World Economic Outlook report?

(a) World Bank

(b) IMF

(d) WTO

(e) None of the given options is true

Q2. ICRA, CRISIL and Standard and Poor’s (S&P) are-

(a) Credit rating agencies

(b) NGOs

(d) NBFCs

(e) None of the given options is true

Q3. Which Bank is the Banker to the Indian Government?

(a) Central Bank of India

(b) Reserve Bank of India

(d) State Bank of India

(e) None of the given options is true

Q4. “Primary Deficit “refers to?

(a) Gross Fiscal Deficit minus Interest Payments

(b) Budget Deficit minus Interest Payments

(d) Deficit financing by 91 day ad hoc treasury bills

(e) None of the given options is true

Q5. Open market operations are mainly used as ______?

(a) A fiscal device which assists Government borrowing

(b) A monetary measure to regulate quantity of money in circulation and the cash reserves of the commercial banks

(d) A measure to influence the balance of payments position

(e) None of the given options is true

Q6. The RBI has given permission for cash withdrawal at “POS terminals”. What is the full form of “POS”?

(a) Permitted on Sale

(b) Potential of Service

(c) Point of Sale

(d) Permission of Sale

(e) None of the given options is true

Q7. “Doing Business Report” is prepared by which of the following organisations every year?

(a) Asian Development Bank (ADB)

(b) World Bank

(d) World Trade Organisation (WTO)

(e) None of the given options is true

Q8. “Yen” is the currency of?

(a) China

(b) South Korea

(d) Japan

(e) None of the given options is true

Q9. Many times we read in financial newspapers/magazines about Systematic Investment Plans (SIPs). SIPs are an investment option also operated in the mode of?

(a) Mutual Funds

(b) Small Savings Schemes in Post Offices

(d) National Saving Certificates

(e) None of the given options is true

Q10. Which of the following apex body and regulators has asked banks to swap customer related information so that the frauds and defaults may be prevented in future?

(a) Bombay Stock Exchange (BSE)

(b) Indian Bank’s Association (IBA)

(d) Reserve Bank of India (RBI)

(e) None of the given options is true

Q11. As we know the RBI is the apex Bank of India, similarly, the apex Bank of USA is called?

(a) Federal Reserve

(b) The Central bank of USA

(d) People's Bank of USA

(e) None of the given options is true

Q12. Which of the following rates decided by the RBI is called “Policy Rate”?

(a) Lending Rate

(b) Cash Reserve Ratio

(d) All of the above

(e) None of the given options is true

Q13. Loan given by the banks to farmers/Agriculture owners etc is known as........?

(a) Corporate loan

(b) Business loan

(c) Priority sector loan

(d) Commercial loan

(e) None of the given options is true

Q14. The Head Office of which of the following banks is in Mumbai?

(a) Punjab National Bank

(b) Bank of Maharashtra

(d) Union Bank of India

(e) None of the given options is true

Q15. Which organisation is an umbrella organisation for all retail payments system in India?

(a) NPCI

(b) SEBI

(d) NABARD

(e) IRDAI

Banking Awareness

Q1. Which Act was framed specially to deal with Non-Performing Assets (NPA)?

(a) Banking Regulation Act 1949

(b) Foreign Exchange Management Act(FEMA) 1999

(d) SARFAESI Act, 2002

(e) None of the given options is true

S1. Ans.(d)
Sol. SARFAESI Act (The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) was enacted to regulate securitization and reconstruction of financial assets and enforcement of security interest created in respect of Financial Assets to enable realisation of such assets. The SARFAESI Act provides for the manner for enforcement of security interests by a secured creditor without the intervention of a court or tribunal. If any borrower fails to discharge his liability in repayment of any secured debt within 60 days of notice from the date of notice by the secured creditor, the secured creditor is conferred with powers under the SARFAESI Act.

Q2. In Notice Money Market, the tenor of the transactions is from ________

(a) 2-7 days

(b) 2-14 days

(d) 2-28 days

(e) 2-90 days

S2. Ans.(b)
Sol. In the money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day or two days to 14 days is referred to as “notice money.”

Q3. An Asset Reconstruction Company(ARC) in India is associated with-

(a) UCPDC

(b) DICGC

(d) Home Loan

(e) None of the given options is true

S3. Ans.(c)
Sol. Asset Reconstruction Company (ARC) also known as Securitization company in India helps to unlock the value of non-performing assets (NPA) in banks through Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.ARC is regulated by RBI as a Non-Banking Financial Company (NBFC).

Q4. Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis?

(a) Commercial Paper

(b) Certificate of Deposit

(d) Call Money

(e) None of the given options is true

S4. Ans.(d)
Sol. Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

Q5. ___________ is a voluntary market body for the bond, money and derivatives markets.

(a) RBI

(b) SEBI

(d) FIMMDA

(e) UIDAI

S5. Ans.(d)
Sol. The Fixed Income Money Market and Derivatives Association of India (FIMMDA), an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance Companies was incorporated as a Company under section 25 of the Companies Act,1956 on June 3rd, 1998. FIMMDA is a voluntary market body for the bond, money and derivatives markets. FIMMDA has members representing all major institutional segments of the market. The membership includes Nationalized Banks such as State Bank of India, its associate banks and other nationalized banks; Private sector banks such as ICICI Bank, HDFC Bank, IDBI Bank; Foreign Banks such as Bank of America, ABN Amro, Citibank, Financial institutions such as IDFC, EXIM Bank, NABARD, Insurance Companies like Life Insurance Corporation of India (LIC), ICICI Prudential Life Insurance Company, Birla Sun Life Insurance Company and all Primary Dealers.

Q6. The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as............?

(a) Liquidity

(b) Credit

(d) Repo Rate

(e) Market price

S6. Ans.(a)
Sol. Liquidity is the term used to describe how easy it is to convert assets to cash.

Q7. Which was the first Indian company listed in National Association of Securities Dealers Automated Quotation System (NASDAQ)?

(a) TCS

(b) HCL

(d) Reliance

(e) Wipro

S7. Ans.(c)
Sol. NASDAQ stands for the National Association of Securities Dealers Automated Quotations. It is an online trading system of America where national and international companies are registered. The first Indian company to be listed at NASDAQ was Infosys, followed by Satyam Infoway, Reliance, Wipro, ICICI etc.

Q8. Special Drawing Rights (SDR) are supplementary foreign exchange reserve assets defined and maintained by-

(a) Asian Development Bank (ADB)

(b) Reserve Bank of India (RBI)

(d) International Monetary Fund (IMF)

(e) Asian Infrastructure Investment Bank (AIIB)

S8. Ans.(d)
Sol. The Special Drawing Right (SDR) is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries.

Q9. The Imperial Bank of India was renamed as?

(a) Reserve Bank of India

(b) IDBI

(d) State Bank of India

(e) Axis Bank

S9. Ans.(d)
Sol. Imperial Bank of India (IBI), the oldest and the largest commercial bank was founded in 1921 and was subsequently transformed into State Bank of India in 1955.

Q10. SBI Day is observed on-

(a) April 1

(b) May 1

(d) July 1

(e) August 1

S10. Ans.(d)
Sol. The day is celebrated every year on July 1st. On this day, July 1, 1955, the Imperial Bank of India was reconstituted by an Act of Parliament to create State Bank of India to perform the functions of a commercial bank.

Q11. Which bank has launched India’s first digital branch in Gurugram, Haryana?

(a) ICICI

(b) Axis Bank

(d) South Indian Bank

(e) State Bank of India

S11. Ans.(c)
Sol. IndusInd Bank has launched India’s first digital branch at IndusInd Cybercity Rapid Metro station, Gurugram, Haryana. This video branch machine allows customers to connect with the remote teller over a real-time video call and perform regular banking transactions like statement printing, cheque deposits, the opening of FD account and encashment, funds transfer along with dispensation of cash.

Q12. _______ is a deposit account provided by a bank or other financial institutions for individuals to save money and earn the modest interest for that money held in the account.

(a) Fixed Deposit Account

(b) Savings Bank Account

(d) Current Account

(e) Escrow Account

S12. Ans.(b)
Sol. A savings account is an account maintained by a bank or other financial institutions for individuals to save money and earn interest on the cash held in the account.

Q13. __________ is a deposit of money that has a fixed time and pays higher interest than a Saving Bank Account.

(a) Fixed Deposit Account

(b) Savings Bank Account

(d) All of the above

(e) None of the given options is true

S13. Ans.(a)
Sol. A deposit of money that pays higher interest than a savings account but imposes conditions on the amount, frequency, and/or period of withdrawals. It is also called time deposit.

Q14. First Indian bank to provide Internet Banking facility is-?

(a) SBI

(b) ICICI Bank

(d) BOI

(e) PNB

S14. Ans.(b)
Sol. First Indian bank to introduce internet banking – ICICI bank.

Q15. Which of the following was implemented by National Payments Corporation of India (NPCI) for Banks, Financial Institutions, corporate etc.?

(a) National Automated Clearing House (NACH)

(b) National Automatic Clearing House (NACH)

(d) National Automatic Cleared House (NACH)

(e) Nominal Automatic Cleared House (NACH)

S15. Ans.(a)
Sol. A web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. National Automated Clearing House (NACH) System can be used for making bulk transactions towards the distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards the collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance, premium etc.

English Quiz

Directions (1-10): In the following passage, there are blanks,

each of which has been numbered. These numbers are printed below the passage and against each,

five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.

The protection of ...(1)... human rights is an ...(2)... necessity for the ...(3)... development of an individual.

If the ...(4)... bills called ‘Protection of women ...(5)... sexual Harassment at workplace bill,2010’ and ‘Protection of children from sexual ...(6)... bill,
2010’ ...(7)... into laws,they can go a long way in the protection of Human Rights of women and children from ...(8).... In addition,

the various movements by groups of people by way of voluntary organizations offer a ray of hope towards individual ...(9)... leading to a ...(10)... development of our nation.

(1) complex

(2) key

(3) marginal

(4) basic

(5) straight forward

(1) provisional

(2) unconditional

(3) absolute

(4) total

(5) conclusive

(1) fullest

(2) marginal

(3) essential

(4) lowest

(5) total

(1) passed

(2) coming

(3) cancelled

(4) recent

(5) proposed

(1) from

(2) to

(3) by

(4) against

(5) with

(1) defense

(2) offence

(3) abolition

(4) crime

(5) abuse

(1) materialize

(2) effective

(3) included

(4) starting

(5) mentioned

(1) Harassment

(2) treatment

(3) crime

(4) abuse

(5) illness

(1) skill

(2) power

(3) empowerment

(4) development

(5) right

10.

(1) effective

(2) whole

(3) total

(4) marginal

(5) holistic

1. 4
2. 3
3. 1
4. 5
5. 4
6. 2
7. 1
8. 4
9. 3
10. 5

English Quiz

Directions (115-126): In the following passage there are blanks, each of which has been numbered.

These numbers are printed below the passage and against each, five words suggested,

one of which fits the blank appropriately. Find out the appropriate word in each case.

Banks are ...(1)... from other corporate in important ...(2)... and that makes corporate governance of banks not only different but also more critical.

Banks facilitate economic growth, are the ..(3)... of monetary policy transmission and constitute the economy’s payment and settlement system.

By the very ...(4)... of their business, banks are highly leveraged. They accept large amounts of un collateralized public funds ...(5)...

deposits in a fiduciary capacity and further leverage those funds through credit creation.

Banks are interconnected in diverse, complex and opaque ways underscoring their ‘contagion’ potential. If a corporate fails,

the ...(6)... can be restricted to the stakeholders. If a bank fails, the impacts can ...(7)...

rapidly through to other banks with potentially serious consequences for the ...(8)...financial system and the macro economy.

While regulation has a ...(9)... to play in ensuring robust corporate standards in banks, the point to recognize is that ...(10)... regulations is a necessary,

but not a sufficient condition for good corporate governance.
In this context, the relevant issues ...(11)... to corporate governance of banks in India are bank ownership,accountability, transparency, ethics, compensation,

splitting the posts of chairman and CEO of banks and corporate governance under financial holding company structure, ...(12)... should engage adequate attention.

(1) Different

(2) Same

(3) Diverse

(4) Differentiated

(5) Similar

(1) Aspects

(2) Perspectives

(3) Leads

(4) Manners

(5) Policies

(1) Agents

(2) Catalysts

(3) Motivators

(4) Points

(5) Ingredients

(1) Limitation

(2) Spread

(3) Nature

(4) Haste

(5) Urge

(1) In

(2) For

(3) From

(4) As

(5) To

(1) Fall over

(2) Push out

(3) Pull out

(4) Fall out

(5) Throw out

(1) Inject

(2) Mix

(3) Flow

(4) Spread

(5) Constrict

(1) Wide

(2) Instable

(3) Long

(4) Small

(5) Closed

(1) Game

(2) Music

(3) Role

(4) Roll

(5) Interest

10.

(1) Calculated

(2) Miscalculated

(3) Estimated

(4) Imaginative

(5) Hard

11.

(1) Persisting

(2) Pertaining

(3) Disturbing

(4) Cornering

(5) Struggling

12.

(1) Which

(2) When

(3) Why

(4) How

(5) That

1. 1
2. 1
3. 1
4. 3
5. 4
6. 4
7. 4
8. 2
9. 3
10. 1
11. 2
12. 1

English Quiz

Directions (1-10): In the following passage there are blanks, each of which has been numbered. These numbers are again printed below the passage and against each, five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.

Mr. Chamberlain had come to get gift to thirty-five million pounds from South Africa and to win the hearts of Englishmen and Boers. So he gave a ...(1)... shoulder to the Indian deputation. ‘You know’, he said, that the Imperial Government has little control over self-governing colonies. Your grievances seem to be genuine. I shall do what I can, but you must try your ...(2)... to placate the ‘Europeans, if you wish to live in their midst’. The reply cast a chill over the members of the ...(3).... I was also disappointed.

It was an eye opener for us all, and I saw that we should start with our work do novo. I ...(4)... the situation to my colleagues. As a matter of fact there was nothing wrong about Mr. Chamberlain’s reply. It was well that he did not mince ...(5).... He had brought home to us in a rather gentle way the rule of might being ...(6)..., or the law of the sword. But sword we had none. We ...(7)... had the nerve and the muscle even to receive sword-cuts. Mr. Chamberlain had given only a short time to the sub-continent. If Sri Nagar to Cape Comorin is 1,900 miles, Durban to Cape town is not less than 1,100 miles, and Mr. Chamberlain had to cover the long distance at hurricane speed. From Natal he hastened to the Transvaal. I had to prepare the case for the Indians there as well and ...(8)... it to him. But how was I to get to Pretoria? Our people there were not in a position to ...(9)...the necessary legal facilities for my getting to them in time. The war had reduced the Transvaal to a howling wilderness. There were neither provisions nor clothing available. Empty or closed shops were there, waiting to be ...(10)... or opened, but that was a matter of time.

(1) cold

(2) cool

(3) hot

(4) warm

(5) left

(1) hard

(2) best

(3) least

(4) fate

(5) hate

(1) reputation

(2) crowd

(3) delegate

(4) leader

(5) deputation

(1) expressed

(2) said

(3) explained

(4) exclaimed

(5) denied

(1) lectures

(2) matter

(3) topic

(4) words

(5) deals

(1) wrong

(2) right

(3) rite

(4) bright

(5) weak

(1) hardly

(2) rare

(3) might

(4) do

(5) scarce

(1) through

(2) permit

(3) submit

(4) deposit

(5) fill

(1) secure

(2) procure

(3) pull

(4) fetch

(5) buy

10.

(1) replenished

(2) fed

(3) booked

(4) filled

(5) emptied

1. 1
2. 2
3. 3
4. 3
5. 4
5. 4
6. 2
7. 1
8. 3
9. 2
10. 1

English Quiz

Directions (1-15): In the following passage there are blanks, each of which has been numbered.

These numbers are printed below the passage and against each, five words suggested,

one of which fits the blank appropriately. Find out the appropriate word in each case.

Indeed, much progress in this ...(1)... has already been made as a ...(2)... of the combined ...(3)...

of the government and the people of the state and the ...(4)... initiative provided by Central Government under Prime Minister’s ...(5)... leadership.

The results of ...(6)... efforts are there for all to see. Prices of ...(7)... commodities and other goods have ...(8)... considerably.

The rate of inflation ...(9)... fallen to gratifying figure of ...(10)... minus 3 % , the ...(11)... in the world. There is complete harmony in ...(12)...

public and private sector establishments and ...(13)... is bound to lead to ...(14)... industrial and agricultural production. Is it is hope or a ...(15)...

1.
(1) Behalf
(2) Regards
(3) Way
(4) Regard
(5) Respect

2.
(1) Resultant
(2) Resulting
(3) Result
(4) Resulted
(5) Resultify

3.
(1) Effort
(2) Work
(3) Efforts
(4) Progress
(5) Movement

4.
(1) Proper
(2) Welcomes
(3) Required
(4) Welcome
(5) Initialization

5.
(1) Chair
(2) Inspires
(3) Inspiring
(4) Stable
(5) Stabilize

6.
(1) The
(2) These
(3) This
(4) Those
(5) Then

7.
(1) Certain
(2) Essential
(3) Good
(4) Several
(5) Manifold

8.
(1) Fell
(2) Falls
(3) Fallen
(4) Risen
(5) Plummeted

9.
(1) Have
(2) Become
(3) Has
(4) Greatly
(5) Rarely

10.
(1) Above
(2) Near
(3) Nearly
(4) Inflation
(5) Internal

11.
(1) Highest
(2) Lowest
(3) Higher
(4) Lower
(5) Lowering

12.
(1) State
(2) All
(3) Both
(4) Either
(5) Center

13.
(1) Will
(2) These
(3) This
(4) Those
(5) That

14.
(1) Great
(2) High
(3) Greater
(4) Lower
(5) Lowest

15.
(1) Certainty
(2) Definitive
(3) Hope
(4) Ultimate
(5) Expectation

1. 2
2. 3
3. 3
4. 3
5. 3
6. 2
7. 2
8. 3
9. 3
10. 3
11. 2
12. 1
13. 3
14. 3
15. 1

English Quiz

Directions(1-10):
In the following passage there are blanks, each of which has been numbered.
These numbers are printed below the passage and against each, five words are suggested,
one of which fits the blank appropriately. Find out the appropriate word in each case.

In economics,the term recession generally describes the reduction of a country’s Gross Domestic Product (GDP) for at least two quarters.
A recession is ...(1)... by rising unemployment, increase in government borrowing, ...(2)...,
of share and stock prices, and falling investment. All of these characteristics have effects on people.

Some recessions have been anticipated by stock market declines.The real – estate market also usually ...(3)... before a recession.

During an economic decline, high ...(4)... stocks such as financial services, pharmaceuticals and tobacco ...(5)... to hold up better.

However, when the economy starts to recover growth, stocks tend to recover faster.
There is significant disagreement about how health care and utilities tend to ...(6)...In 2008,
an economic recession was suggested by several important indicators of economic downturn.
These ...(7)... high oil prices, which led to ...(8)... high food prices due to a dependence of food production on petroleum,
as well as using food crop products such as ethanol and biodiesel as an ...(9)... to petroleum; and global inflation;
a substantial credit crisis investment blanks as well ...(10)... as commercial banks in various,
and signs of contemporaneous economic downturns in major economics of the world, a global recession.

(1) imagined

(2)depict
(3) shown
(4) visualized
(5) characterized

2.
(1) Increase
(2) variance
(3) more
(4) decrease
(5) abundance

3.
(1) weakens
(2) intiates
(3) awakens
(4) strengthens
(5) volatile

4.
(1) maintained
(2) yield
(3) heavy
(4) result
(5) payment

5.
(1) are
(2) want
(3)tend
(4) yearn
(5) made

6.
(1) distribute
(2) recover
(3) wait
(4) increased
(5) fight

7.
(1) meant
(2) show
(3) numbered
(4) included
(5) encompass

8.
(1) fearful
(2) dangerous
(3) abnormally
(4) healthy
(5) nutritious

9.
(1) alternative
(2) variant
(3) substitute
(4) element
(5) integral

10.
(1) wealthy
(2) costly
(3) stand
(4) created
(5) established

ANSWERS -
1. 5
2. 4
3. 1
4. 2
5. 3
6. 2
7. 4
8. 3
9. 1
10. 5

KRISHNA MOHAN

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Friday 28 July 2017

Banking Awareness,

Banking Awareness

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English Quiz

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