BANKING QUIZ

1. Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements as measures of credit control are classified as
a) Quantitative methods
b) Qualitative methods
c) Weighted average methods
d) None of the above
e) both (a) and (b)

2. Which of the following is the first commercial bank who had launch a mutual fund?
a) State bank of India
b) Canara bank
c) Indian bank
d) Bank of India
e) Indian overseas bank

3. In periods of boom, which leads to economic instability RBI resorts to
a) Sale first class securities in its precession in the market, to reduce the supply of money as a measure of open market operations
b) Buying of approved securities in the market as a measure of open market operation
c) Like in the bank rate as is measure of open market operations
d) None of the above
e) All of the above

4. An open ended fund means
a) The fund exists for perpetuity. There is no ceiling on the amount to be collected or raised
b) Investors are assured of dividends, capital appreciation and safety of their investment
c) A repurchase facility close to net asset value (NAV)
d) All
e) None

5. Which is the authority in India for effecting changes in the cash reserve ratio and statutory liquidity ratio?
a) Government of India
b) RBI
c) Indian banks Association
d) CRR and SLR association
e) None of the above

6. In the opinion of the Governor of Reserve Bank of India, which one of the following is the reason owing to which India’s inflation is accelerating?
a) Excess liquidity in market
b) Speculation in essential goods
c) Higher food Cost
d) Commodities futures
e) None of these

7. What does the term Open Market Operations refer to?
a) Selling of equities in the open market
b) Selling of commodities in the open market
c) Buying and selling of government securities in the open market
d) Buying and selling of products in the wholesale market
e) None of these

8. Which of the following do not fall within the functions of the Reserve bank of India?
a) Regulation of currency
b) Control of credit
c) banker to the Government, banker’s bank and lender of the last resort
d) Accepting deposits and making loans and advances to public
e) none of the above

9. Unorganised sector includes
a) Moneylenders, indigenous bankers
b) Power brokers, traders, etc.
c) Non-banking financial companies which do not fulfill the criteria notified by the Reserve Bank of India
d) all of the above
e) None of the above

10. Banking is defined under
a) Negotiable Instrument Act, 1881
b) Banking Regulation Act, 1949
c) Reserve Bank of India Act, 1935
d) nowhere, it is defined
e) Both 1 and 2