BANKING QUIZ

1. The term ‘Moral suasion’ refers to
a) The banker’s duty of secrecy as regards the affairs and accounts of his customers
b) Moral duty of a borrower to deal with only one bank
c) The advice given by Reserve bank to banks/financial institutions in the matter of their lending and other operations with the objective that they might implement or follow
d) All

2. Where the signature of the drawer of a cheque is not genuine, such a cheque is called
a) post dated cheque
b) stale cheque
c) forged cheque
d) all

3. Capital market refers to all the facilities and institutions arrangements for
a) borrowing
b) lending
c) medium and long term funds
d) all

4. A Pledge means
a) advanced against goods
b) hypothecation of goods
c) bailment of goods as security for payment of a debt or performance of a promise.
d) Open limits

5. Truncation of cheques means
a) scanning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle
b) debiting of drawer’s account through internet
c) Both of the above
d) none of the above

6. Who issues treasury bills?
a) Reserve Bank of India, as the agent of the Central Government
b) Any govt dept of state and central
c) Any Commercial Bank
d) All of the above
e) None of the above

7. Commercial paper
a) fully secured instrument
b) unserved money market instrument
c) partly secured paper
d) All of the above

8. Bill of Exchange, Promissory Notes and Cheques are defined as
a) Negotiable Instruments
b) Trust Receipts
c) Documents of Title to goods
d) Stamped Instruments

9. Which of the following do not enjoy scheduled bank status with RBI?
a) State co-operative banks
b) Regional rural banks
c) Foreign banks in India
d) District Cooperative banks

10. Factoring is
a) a means of financing traders and manufactures by taking over their receivables
b) a means of providing post-shipment finance to exporters
c) a type of agriculture financing
d) None

11. Smart card
a) has an embedded circuit with micro processor chip embedded in it so that it could perform calculations maintain records and act as electronic pursue
b) has built in facility for protection against fraudulent operations
c) can either be rechargeable or exchangeable
d) All

12. Commercial banking system means
a) Scheduled and non-Scheduled banks
b) Private sector and public scheduled banks
c) Both (a) and (b)
d) Regional rural banks, co-operative banks and NBFCs

13. Which of the following fall under the qualitative method of credit control adopted by RBI?
a) Selective credit control
b) Moral suasion
c) Credit authorization scheme
d) All the above

14. Scheduled bank refers to a bank
a) authorised by central government to transaction government business
b) registered with ministry of finance , govt. of India
c) Which is included in the second schedule to the RBI act, 1934
d) incorporated as a cooperative society

15.Which of the following is NOT a source of funds of a commercial bank?
a) Capital
b) Borrowings from RBI
c) Call money
d) Deposits