Banking General Awareness Banking System Question Bank

done Practice Questions - Para Banking Services Total Questions - 40

• question_answer1)
  Board for Financial Supervision (BFS) constituted in 1994 by RBI to undertake consolidated supervision of
  A)
   commercial banks done clear
  B)
   financial institutions done clear
  C)
   non-banking finance companies done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer2)
  SMERA is an SME Rating Agency in India meant for
  A)
   rating on credit worthiness of MSME done clear
  B)
   rating on quality management done clear
  C)
   rating on training system done clear
  D)
   rating on technology usage in (the organisation) done clear
  E)
   None of these done clear
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• question_answer3)
  Banks which undertake financial services such as insurance business, underwriting, and equipment leasing, are called
  A)
   Traditional Banking done clear
  B)
   Para Banking done clear
  C)
   CASA Banking done clear
  D)
   Narrow Banking done clear
  E)
   None of these done clear
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• question_answer4)
  Banks are allowed to form subsidiaries as per
  A)
   Section 19(1) of the Banking Regulation Act, 1949 done clear
  B)
   The Reserve Bank of India Act, 1934 done clear
  C)
   The Subsidiary Banks General Regulation, 1959 done clear
  D)
   SIDBI General Regulations, 1990 done clear
  E)
   None of these done clear
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• question_answer5)
  Which financial institution established by IBRD-American Mission, in 1955?
  A)
   IDBI                             done clear
  B)
   ICICI done clear
  C)
   SBI                              done clear
  D)
   RRB done clear
  E)
   PNB done clear
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• question_answer6)
  Bank of Rajasthan was merged with
  A)
   HDFC Bank                  done clear
  B)
   ICICI Bank done clear
  C)
   AXIS Bank                   done clear
  D)
   Citi Bank done clear
  E)
   None of these done clear
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• question_answer7)
  ICICI provides financial assistance to
  A)
   small-scale industries done clear
  B)
   medium-scale industries done clear
  C)
   large-scale industries done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer8)
  ICICI provides assistance by way of
  A)
   long and medium-term loans and equity participation done clear
  B)
   guaranteeing rupee and foreign, currency loans raised from other sources done clear
  C)
   underwriting issues of shares and debentures done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer9)
  The most significant feature of ICICI's operations is
  A)
   the foreign currency loans sanctioned by it done clear
  B)
   to channelise World Bank Funds to industry in India and to build capital market in India done clear
  C)
   the refinance facilities extended by it done clear
  D)
   Both [a] and [b] done clear
  E)
   None of these done clear
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• question_answer10)
  In the State of India, the State Financial Corporation have given assistance mainly to develop
  A)
   agricultural farms done clear
  B)
   cottage industry done clear
  C)
   large-scale industries done clear
  D)
   medium and small-scale industries done clear
  E)
   None of these done clear
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• question_answer11)
  The services provided by merchant bankers includes

  I. management of mutual funds.

  II. public issues.

  III. dealing with the corporate clients and advising them on various issues.

  Select the correct answer using the codes given below
  A)
   Only I                          done clear
  B)
   I and II done clear
  C)
   II and III                       done clear
  D)
   All of these done clear
  E)
   None of these done clear
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• question_answer12)
  Which was the first mutual fund started in India?
  A)
   SBI Mutual Fund done clear
  B)
   Indian Bank Mutual Fund done clear
  C)
   Kotak Pioneer Mutual Fund done clear
  D)
   Unit Trust of India done clear
  E)
   None of these done clear
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• question_answer13)
  Which of the following mobilise (s) the savings of the public to specifically invest in the industrial securities?
  A)
   UTI                              done clear
  B)
   LIC done clear
  C)
   GIC                             done clear
  D)
   All of these done clear
  E)
   None of these done clear
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• question_answer14)
  Banks are authorised to sell third party products. Which are these products?
  A)
   Mutual funds                 done clear
  B)
   Term deposits done clear
  C)
   Credit cards                   done clear
  D)
   Gift cheques done clear
  E)
   None of these done clear
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• question_answer15)
  Which of the following is/are subsidiaries of banks that offer para banking services?
  A)
   SBI Pension Funds Private Ltd done clear
  B)
   SBI Mutual Fund done clear
  C)
   ICICI Ventures done clear
  D)
   All of the above done clear
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• question_answer16)
  The UTI was established in
  A)
   1956                            done clear
  B)
   1964 done clear
  C)
   1972                            done clear
  D)
   1976 done clear
  E)
   None of these done clear
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• question_answer17)
  What do you understand by Tara Banking services?
  A)
   Eligible financial services rendered by banks done clear
  B)
   Utility services provided by banks done clear
  C)
   Services provided through business correspondents done clear
  D)
   Services provided to armed force personnel done clear
  E)
   None of these done clear
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• question_answer18)
  Expand the term BCBS.
  A)
   Bank's Committee on Banking Supervision done clear
  B)
   Basel Committee on Banking Supervision done clear
  C)
   Bank's Commission on Banking Supervision done clear
  D)
   Basel Commission on Banking Supervision done clear
  E)
   None of these done clear
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• question_answer19)
  Net balance maintained in current account by co-operative banks with .......... are not treated as cash for the purpose of CRR/SLR.
  A)
   State Bank of India done clear
  B)
   State Bank of Hyderabad done clear
  C)
   IDBI Bank Limited done clear
  D)
   Canara Bank done clear
  E)
   All of these done clear
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• question_answer20)
  Which of the following business parameters is/are required by sponsor banks to maintain relationship with their subsidiary banks?
  A)
   Borrowing/lending of funds done clear
  B)
   Transferring/selling/buying of securities done clear
  C)
   Both [a] and [b] done clear
  D)
   None of these done clear
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• question_answer21)
  The formal beginning of the merchant banking services in India began in 1967, when the Reserve Bank of India provident license to the
  A)
   State Bank of India done clear
  B)
   Oriental Bank of Commerce done clear
  C)
   Grindlays Bank done clear
  D)
   Federal Bank done clear
  E)
   None of these done clear
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• question_answer22)
  Banks in their daily business, face various kinds of risks. Which of the following is one such major risk?
  A)
   Customer risk    done clear
  B)
   Reputation done clear
  C)
   Goodwill risk                 done clear
  D)
   Protection risk done clear
  E)
   Operational risk done clear
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• question_answer23)
  All merchant banks must be worth atleast
  A)
   Rs. 1 crore                    done clear
  B)
   Rs. 2 crore done clear
  C)
   Rs. 3 crore                    done clear
  D)
   Rs. 4 crore done clear
  E)
   Rs. 5 crore done clear
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• question_answer24)
  Which of the following laws governs RBI's approval for making strategic investment in VCFs?
  A)
   Section 19(2) of the Banking Regulation Act, 1949 done clear
  B)
   State Financial Corporations Act, 1951 done clear
  C)
   Reserve Bank of India Act, 1934 done clear
  D)
   Companies Act, 1956 done clear
  E)
   None of these done clear
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• question_answer25)
  Basel norms are important international regulatory stipulations. It is meant for which sector?
  A)
   Insurance                      done clear
  B)
   Banking done clear
  C)
   Micro Finance    done clear
  D)
   Pension funds done clear
  E)
   None of these               done clear
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• question_answer26)
  Mutual funds fall within supervisory purview of
  A)
   SBI                              done clear
  B)
   RBI done clear
  C)
   SEBI                            done clear
  D)
   IRDA done clear
  E)
   None of these done clear
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• question_answer27)
  What are major functions undertaken by merchant bankers?
  A)
   Issue management done clear
  B)
   Capital structuring / restructuring done clear
  C)
   Market maker in capital market done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer28)
  Which of the following regulatory frameworks should be followed to maintain relationship with NBFCs?
  A)
   NBFCs promoted by a group of foreign banks should have presence in India. done clear
  B)
   A foreign bank with 10- 50% of the issued and paid up equity of an NBFC, need to have management control on NBFC. done clear
  C)
   Both [a] and [b] done clear
  D)
   None of these done clear
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• question_answer29)
  The main objective(s) of National Housing Bank is/are
  A)
   to promote and develop specialized housing  finance  institutions  for mobilisation of resources and extending finance for housing activities done clear
  B)
   to extend refinance facilities to housing finance institutions and to scheduled banks done clear
  C)
   to provide guarantee and underwriting facilities of housing finance institutions done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer30)
  Which of the following constitute the code of conduct for merchant bankers as stipulated by SEBI?
  A)
   Maintenance of high degree of standards of integrity and fairness in dealings done clear
  B)
   Providing true and adequate information to investors and abide by the provisions of various acts, rules and regulation etc done clear
  C)
   Ethical conduct of business and provision of information to customers in respect of code done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer31)
  The main function(s) of SIDBI is/are
  A)
   to provide refinance for loans and advances extended by the primary lending institutions to SSI units and also to provide resources support to them done clear
  B)
   it discounts and rediscounts bill arising from sale of machinery to or manufactured by industrial units in the SSI sector done clear
  C)
   it extends seed capital/soft loan assistance under National Equity Fund, Manila Udyan Nidhi and Manila Vikas Nidhi and Seed Capital Schemes through specified lending agencies done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer32)
  Which of the following public sector banks is regarded as being the first to launch its own Mutual Fund Scheme?
  A)
   SBI done clear
  B)
   PNB done clear
  C)
   Bank of India done clear
  D)
   Canara Bank done clear
  E)
   ICICI Bank done clear
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• question_answer33)
  Which is the principal institution for promotion, financing and development of small scale industries in the country?
  A)
   RBI                              done clear
  B)
   SBI done clear
  C)
   IDBI                             done clear
  D)
   SIDBI done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer34)
  Credit rating is
  A)
   used to rate the borrowers while giving advances done clear
  B)
   used to work out performance of the employees done clear
  C)
   used to calculate the number of excellent audit rated branches done clear
  D)
   not used in any bank done clear
  E)
   necessary before giving promotion to employees done clear
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• question_answer35)
  For  financing infrastructure  projects, Infrastructure Debt Funds (IDFs) can be set up as
  A)
   Mutual Funds done clear
  B)
   Non-Banking Finance Companies done clear
  C)
   Both [a] and [b] done clear
  D)
   None of these done clear
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• question_answer36)
  Which of the following acts regulates underwriting of issues for merchant banking activities?
  A)
   Negotiable Instrument Act, 1881 done clear
  B)
   Banking Regulation (Companies) Rules, 1949 done clear
  C)
   Section 19 (2) & (3) of the Banking Regulation Act, 1949 done clear
  D)
   Factoring Act Rules, 2011 done clear
  E)
   None of these done clear
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• question_answer37)
  Which of the following statements is/ are correct about retailing of government securities?
  A)
   Banks can buy and sell Government Securities on an outright basis at prevailing market prices without any restriction on the period between sale and purchase. done clear
  B)
   Banks are allowed to undertake ready forward transactions in Government Securities with nonbank clients. done clear
  C)
   Both [a] and [b] done clear
  D)
   None of these done clear
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• question_answer38)
  Money Market Mutual Funds (MMMFs) are regulated by
  A)
   RBI done clear
  B)
   SEBI done clear
  C)
   All India Financial Institutions done clear
  D)
   All of the above done clear
  E)
   None of these done clear
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• question_answer39)
  Which of the following statements is/are correct about bank's insurance business?
  A)
   Banks can set up a subsidiary/joint venture/ as well as undertake insurance broking/ insurance agency. done clear
  B)
   Banks do not need prior approval of RBI for setting up a subsidiary/joint venture. done clear
  C)
   Both [a] and [b] done clear
  D)
   None of these done clear
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• question_answer40)
  Bank's involvement in the Pension Fund Management (PFM) business is allowed under
  A)
   Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 done clear
  B)
   Section 6 of the Banking Regulation Act, 1949 done clear
  C)
   The Pensions Act, 1871 done clear
  D)
   General Provident Fund (Central Services) Rules/1960 done clear
  E)
   None of these done clear
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