SBI Clerk

Questions on Banking and Finance

1. Legislative and regulatory changes made over the last 18 months had created an enabling and supportive operational environment for ARCs and for takeover of stressed assets by PE firms/special situation funds. In the abbreviation ARC, the letter A stands for what?
a) Asset (ARC: Asset Reconstruction Company)
b) Art
c) Aspect
d) Atlas
e) Actpr

2. As per Foreign Exchange Regulations, NRIs may invest in which of the following, in of an Indian company under Fore ign Direct Investment (FDI) Scheme, subject to the terms and conditions specified in Schedule 1?
a) Company Shares
b) Compulsorily Convertible Preference Shares (CCPS)
c) Compulsorily Convertible Debentures (CCDs)
d) Warrants/ partly paid up shares
e) All the above

3. The Social Security Scheme namely, AamAadmiBimaYojana (AABY) caters to unorganised sector persons under 48 various vocational groups. Who are such persons / workers?
a) Beedi Workers
b) Brick Kiln Workers,
c) Rickshaw Pullers
d) Auto Drivers etc.
e) All the above

4. What are the benefits available to all the RuPay ATM-cum-debit cardholders?
a) All RuPay ATM-cum-debit cardholders are presently eligible for accidental death and permanent disability insurance cover.
b) RuPay Classic cardholders are eligible for cover of Rs.1 lakh, whereas RuPay Premium cardholders are eligible for cover of Rs.2 lakh.
c) Insurance premium is paid by the National Payments Corporation of India
d) All the above
e) None of these

5. Supervisory Colleges have been setup for which of the following Scheduled Commercial Banks which have sizeable international presence?
a) State Bank of India, ICICI Bank Ltd.,
b) Bank of India, Bank of Baroda,
c) Axis Bank Ltd.
d) Punjab National Bank
e) All the above six banks

6. With which bank Long Term Rural Credit Fund (LTRCF), was created with effect from 2014- 15, in order to provide long term refinance to Cooperative banks and RRBs to meet the long term inve stment credit lending in agriculture, con tributed out of shortfall in achievement of Priority Sector Len ding (PSL) targets by Scheduled Commercial Banks? 
a) NABARD
b) NHB
c) LIC
d) HDFC
e) ICICI

7. If any bank branch observes Monday as weekly off, that bank branch shall stay open on Monday, July 31, 2017, as it is the last date for payment of crop insurance premium. In order to facilitate collection of insurance premiums on crops. From whom crop insurance premiums are collected?
a) Farmers
b) Tailors
c) Traitors
d) Tutors
e) Cheaters

8. The Monetary Policy Committee (MPC) scheduled to meet on August 1 and 2, 2017 for ________ the Monetary Policy Statement for 2017-18.
a) Third Bi-monthly
b) Fourth bi-monthly
c) Fifth bi-monthly
d) Sixth bi-monthly
e) None of these

9. ‘Bank charges’ printed in the bank pass book, would give details about which of the following?
a) Nature of the charges – fee/commission/fine/ penalty etc.
b) Reasons for the charges, in brief – e.g. return of cheque (number), commission/ fee on draft issued /remittance (draft number), cheque collection charge (number),
c) Charges for issuance of cheque book, SMS alerts, ATM fees, additional cash withdrawals, etc.
d) All the above
e) None of these

10. ‘Payment to third parties’ printed in the bank pass book, should mention which of the following?
a) Name of the payee
b) Mode – Transfer, clearing, inter-branch, RTGS/ NEFT, cash, cheque (number)
c) Name of the transferee bank, if the payment is made through clearing/inter branch transaction/ RTGS/NEFT
d) All the above
e) None of these

11. When Reserve Bank of India (RBI) introduced the system of Primary Dealers (PDs) in the Government Securities (G-Sec) Market?
a) 1935
b) 1995
c) 1949
d) 1980
e) 1969

12. What are the objectives of the Primary Dealers (PD) system?
a) To strengthen the infrastructure in GSec market
b) Development of underwriting and market making capabilities for G-Sec
c) Improve secondary market trading system
d) To make PDs an effective conduit for open market operations (OMO)
e) All the above

13. At all times, at least how much of the paid-up share capital of the private sector banks shall be held by resident Indians?
a) 49%
b) 26 %
c) 15%
d) 25%
e) 30%

14. From all sources viz., Foreign Direct In vestment, Foreign Institutional Investors, Non Resident Indians, foreign investment shall not exceed how much of paid up capital of the private sector bank?
a) 51%
b) 74 %
c) 26%
d) 49%
e) None

15. Banks normally issue shares in which method?
a) Public Issues [(i)Initial Public Offer (ii)Further Public Offer]b) Private Placement (Preferential Issue / Qualified Institutional Placement)
c) Rights Issue
d) Bonus Issues
e) All the above methods

16. “A loan on which the interest rate isfixed for the entire tenor of the loan” is called as what? 
a) Fixed rate loan
b) Bank rate loan
c) Repo rate loan
d) Reverse repo rate loan
e) None of these

17. What is “Floating rate loan”?
a) A loan on which interest rate does not remain fixed during the tenor of the loan.
b) It is for a boat
c) It is for a ship
d) It is for bus
e) None of these

18. What is “Term loan”?
a) Loan for one day
b) A loan which is repayable after a specified  term period
c) Loan for 6 days
d) Loan for 10 days
e) None of these

19. Interest shall be charged on all advances at which period?
a) Monthly rests
b) Half yearly
c) Yearly
d) For 5 years
e) None of these

20. From which date all rupee loans sanctioned and credit limits renewed are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which will be the internal benchmark for such purposes?
a) w.e.f. April 1, 2016
b) 1.1.2015
c) 2014
d) 2013
e) None of these

21. The MCLR shall comprise, which of the following?
a) Marginal cost of funds
b) Negative carry on account of CRR
c) Operating costs
d) Tenor premium
e) All the above

22. What is “Bulk Deposit”?
a) It means Rupees one crore and above for Scheduled Commercial Banks other than Regional Rural banks
b) Rs. 50 lakhs
c) Rs.25 lakhs
d) Rs.10 lakhs
e) None of these

23. What is “Composite Cash Credit?
a) It is withdrawal
b) It means a type of loan product having a cash credit limit with a fully savings module designed to take care of farmer’s interest
c) It is a mortgage
d) It is a pledge
e) None of these

24. What is “Current Account”?
a) It means a form of non-interest bearing demand deposit where from withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount. and shall also be deemed to include other deposit accounts which are neither Savings Deposit nor Term Deposit
b) Only for housewives
c) Only for agriculturist
d) Only for teachers
e) None of these

25. What is “Daily product”?
a) Production of cotton
b) It means the interest applied on the end of day balance
c) Production of milk
d) Production of rice
e) None of these

26. What is “Demand deposit”?
a) Cash withdrawal
b) It means a deposit received by the bank, which is withdrawable on demand
c) Money payment
d) Fixed deposit
e) None of these

27. What is “Notice deposit”?
a) Notice period
b) It means term deposit for specific period but with drawable on giving at least one complete banking day’s notice
c) Keys deposit
d) Gold deposit
e) None of these

28. What is “Scheduled commercial Bank”?
a) Banks other than co-operatives banks included in second schedule of Reserve Bank of India Act, 1934.
b) Banks mentioned in Constitution of India
c) World Bank
d) ADB
e) None of these

Questions on Banking and Finance

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Mallikarjuna

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