Banking General Awareness Banking System Question Bank

done Previous Years Questions - Para Banking Services Total Questions - 31

• question_answer1)
  As per the reports in the leading newspapers the Securities & Exchange Board of India (SEBI) has asked the Mutual Fund industry to stop "Misselling" their schemes to investors. What is "Misselling" of products? [BOM2008]

  (1) Misselling takes place when mutual funds are sold without telling the likely returns.

  (2) When agents sell-'the products without telling investors what are the risks involved in investing in mutual funds

  (3) When agents invest somebody's money in mutual funds without their knowledge, it is called misselling.

  A)
   Only (1)                        done clear
  B)
   Only (2) done clear
  C)
   Only (3)                        done clear
  D)
   All (1), (2) & (3) done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer2)
  Which of the following is/are correct about the "Operational Risk' as used in the field of banking?     [UBOI 2008]

  (1) Risk of loss due to inadequate or failed internal process.

  (2) Risk of loss due to natural calamities.

  (3) Loss occurred due to non-compliance of legal procedures.

  A)
   Only (1)                        done clear
  B)
   Only (2) done clear
  C)
   Only (3)                        done clear
  D)
   All (1), (2) & (3) done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer3)
  The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as.................                     [IOB2008]
  A)
   Probability risk   done clear
  B)
   Market risk done clear
  C)
   Inflation risk      done clear
  D)
   Credit risk done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer4)
  A/Bank Financial Organisation these days relies heavily on e-commerce for its transaction. As a part of system security, it has introduced the organisation's security awareness manual. This step of the organisation can be classified under which one of the following categories of measures for a business?                                 [IOB 2008]
  A)
   Preventive done clear
  B)
   Compliance done clear
  C)
   Corrective done clear
  D)
   Detective done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer5)
  Very often we see in the advertisements published by Financing Institutes/Agencies stating their products are given high or average Ratings. These Rating Agencies classify bonds/investments into how many categories? [UBI 2009]

  (1) Low Risk

  (2) Average Risk

  (3) High Risk

  A)
   Only (1)                        done clear
  B)
   Only (2) done clear
  C)
   Only (3)                        done clear
  D)
   All (1), (2) & (3) done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer6)
  Which of the following is/was NOT included in the agenda set for the Banking Reforms in India?         [RBI 2009]
  A)
   Dismantling of administered interest rates done clear
  B)
   Measures to strengthen risk management done clear
  C)
   Promulgation of SARFAESI Act done clear
  D)
   Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt done clear
  E)
   Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market. done clear
  View Solution play_arrow

• question_answer7)
  One of the major emphasis of Basel II is that banks should have ?.  [Allahabad Bank 2010]
  A)
   adequate Capital Adequacy Ratio done clear
  B)
   only few branches in urban centres done clear
  C)
   more and more branches in rural areas done clear
  D)
   core banking mode of operation done clear
  E)
   all the above to comply with Basel II norms done clear
  View Solution play_arrow

• question_answer8)
  Which of the following is NOT a Government of India undertaking? [Allahabad Bank 2010]
  A)
   Oil India Ltd. done clear
  B)
   Sutlej Jal Vidyut Nigam Ltd. done clear
  C)
   ICICI Bank done clear
  D)
   National Thermal Power Corporation Ltd. done clear
  E)
   Rural Electrification Corporation Ltd. done clear
  View Solution play_arrow

• question_answer9)
  Which of the following is NOT associated with climate change and/or global warming? [Allahabad Bank 2010]
  A)
   Basel norms done clear
  B)
   Ball Meet 2007 done clear
  C)
   Copenhagen Conference done clear
  D)
   Kyoto Protocol done clear
  E)
   Bangkok Meet in 2009 done clear
  View Solution play_arrow

• question_answer10)
  Many times we read in newspapers that a company is planning to bring a public issue. What does it mean? [Syndicate 2010]

  (1) Shares of the company will be issued only through public sector organisations like banks/Central financial institutions etc.

  (2) Shares of the company will be issued to general public only through primary market.

  (3) This means some stakeholders / promoters are willing to leave the company. Hence they wish to sell their stock to the general public.

  A)
   Only (1) done clear
  B)
   Only (2) done clear
  C)
   Only (3) done clear
  D)
   All (1), (2) & (3) done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer11)
  Basel-II norms are associated with which of the following aspects of the banking industry? [Punjab & Sindh 2011]
  A)
   Risk management done clear
  B)
   Manpower planning done clear
  C)
   Retirement benefits for the employees done clear
  D)
   Corporate Governance done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer12)
  What is meant by "Underwriting", the term frequently used in financial sector? [Punjab & Sindh 2011]
  A)
   Undervaluation of the assets done clear
  B)
   The act of taking on a risk for a fee done clear
  C)
   Giving a Guarantee that a loan will not become a bad loan done clear
  D)
   The act of permission to float an IPO done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer13)
  Expand the term BCBS. [Corporation Bank 2011]
  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
  View Solution play_arrow

• question_answer14)
  What do you understand by 'Para Banking' services?"                [Allahabad Bank 2011]
  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
  View Solution play_arrow

• question_answer15)
  Which of the following is/was NOT included in the agenda set for the Banking Reforms in India? [Andhra Bank 2011]
  A)
   Dismantling of administered interest rates done clear
  B)
   Measures to strengthen risk management done clear
  C)
   Promulgation of SARFAESI Act done clear
  D)
   Promotion of the concept of easy credit to all with a guaranteed subsidy from the Govt done clear
  E)
   Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market done clear
  View Solution play_arrow

• question_answer16)
  Structure of Basel II is based on how many pillars?      [Indian Overseas Bank 2011]
  A)
   Two                             done clear
  B)
   Ten done clear
  C)
   Four                             done clear
  D)
   Five done clear
  E)
   Three done clear
  View Solution play_arrow

• question_answer17)
  Credit Rating          [Corporation Bank 2011]
  A)
   is used to rate the borrowers while giving advances. done clear
  B)
   is used to work out performance of the employees. done clear
  C)
   is used to calculate the number of excellent auditrated branches. done clear
  D)
   is not used in any bank. done clear
  E)
   is necessary before giving promotion to employees. done clear
  View Solution play_arrow

• question_answer18)
  Which of the following is not considered a money market instrument?                        [IBPS 2011]
  A)
   Treasury bills done clear
  B)
   Repurchase Agreement done clear
  C)
   Commercial Paper done clear
  D)
   Certificate of Deposit done clear
  E)
   Shares and bonds done clear
  View Solution play_arrow

• question_answer19)
  One of the major emphases of Basel II is that banks should have       [Allhabad Bank 2010]
  A)
   adequate Capital Adequacy Ratio done clear
  B)
   only few branches in urban centres done clear
  C)
   more and more branches in rural areas done clear
  D)
   core banking mode of operation done clear
  E)
   All of the above done clear
  View Solution play_arrow

• question_answer20)
  Structure of Basel II is based on how many pillars?
  A)
   Two                             done clear
  B)
   Ten done clear
  C)
   Four                             done clear
  D)
   Five done clear
  E)
   Three done clear
  View Solution play_arrow

• question_answer21)
  Which of the following cannot be called as a debt instrument as referred in financial transactions? [Indian Overseas Bank 2009]
  A)
   Certificate of deposits     done clear
  B)
   Bonds done clear
  C)
   Stocks              done clear
  D)
   Commercial papers done clear
  E)
   Loans done clear
  View Solution play_arrow

• question_answer22)
  Banks' mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections -wherein banks are required to lend up to 40% of the loans is generally described as        [IBPS 2013]
  A)
   Para banking                 done clear
  B)
   Sub-prime lending done clear
  C)
   Retail lending done clear
  D)
   Non-priority sector lending done clear
  E)
   Priority sector lending done clear
  View Solution play_arrow

• question_answer23)
  Which of the following organization is made specifically responsible for empowering Micro, Small and Medium enterprises in India?                         [SBI Bank 2013]
  A)
   NABARD                      done clear
  B)
   RBI done clear
  C)
   SIDBI                           done clear
  D)
   ECGC done clear
  E)
   SEBI done clear
  View Solution play_arrow

• question_answer24)
  The arrangement under which banks sell insurance products acting as the agents of the respective companies is called the  (IBPS PO 2013)
  A)
   Insurance joint venture done clear
  B)
   Bancassurance Model done clear
  C)
   Hybrid Insurance Model done clear
  D)
   Insurance Broking done clear
  E)
   Integrated Model done clear
  View Solution play_arrow

• question_answer25)
  The process by which a life insurance policyholder can transfer all rights/ title and interest- under a policy contract to a third person is known as                      (IBPS PO 2013)
  A)
   Assignment of the policy done clear
  B)
   Hypothecation of the policy done clear
  C)
   Reinvestment of the policy done clear
  D)
   Negotiation of the policy done clear
  E)
   Nomination of the policy done clear
  View Solution play_arrow

• question_answer26)
  Which insurance company will insure under 'varishtha Pension Bima Yojana'?  (IBPS 2014)
  A)
   United India done clear
  B)
   LIC done clear
  C)
   National Insurance done clear
  D)
   New India Assurance done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer27)
  Which bank announced that it had entered into agreements with private insurers Cigna TTK and Reliance General Insurance to provide, health and general insurance services to its customers?      (IBPS 2016)
  A)
   Tamil Nadu Merchantile Bank done clear
  B)
   Bank of Baroda done clear
  C)
   Maharashtra Bank done clear
  D)
   Andhra Bank done clear
  E)
   None of these done clear
  View Solution play_arrow

• question_answer28)
  Banks' mandatory lending to farmers for agriculture, micro and small enterprises and other weaker sections where in banks are required to lend up to 40% of the loans is generally described as                    (IBPS 2013)
  A)
   Para banking done clear
  B)
   Sub-prime lending done clear
  C)
   Retail lending done clear
  D)
   Non-priority sector lending done clear
  E)
   Priority sector lending done clear
  View Solution play_arrow

• question_answer29)
  Which among the following Companies in India has a tie-up with the Japanese Financial Nomura for insurance market?                (IBPS 2013)
  A)
   ICICI Bank done clear
  B)
   UCO Bank done clear
  C)
   Kotak Finance done clear
  D)
   Life Insurance Corporation of India done clear
  E)
   None of the above done clear
  View Solution play_arrow

• question_answer30)
  Which of the following values is considered by a bank when it gives loan against LIC policy?              (SBI 2014)
  A)
   Face value                    done clear
  B)
   Surrender value done clear
  C)
   Insured value                 done clear
  D)
   Both [a] and [b] done clear
  E)
   All of these done clear
  View Solution play_arrow

• question_answer31)
  Which bank has tied with New India Assurance to launch health insurance products for women account holders of the bank.               (SBI 2014)
  A)
   State bank of India done clear
  B)
   ICICI bank done clear
  C)
   Punjab National Bank done clear
  D)
   Bhartiya Mahila Bank done clear
  E)
   None of these done clear
  View Solution play_arrow