Wednesday 20 July 2011

Financial Institutions & Banking - 3, july 2011 attempt

Bitmap Multiple Choice Multiple AnswerQuestion
Agricultural Finance Consultancy Ltd(AFC)
activities cover :-Correct Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark Surveys
Your Answer
Pre-feasibility studies , Regional /Sectoral planning , Benchmark Surveys
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Duties of an International Banking unit cover :-
Correct Answer
Handling foreign currency , Handling Doc. credits , Granting lines of Credit
Your Answer
Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
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One of the objectives of NHB is to augment the ________
resources for the housing sector.Correct Answer
Financial
Your Answer
Financial
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The unorganised financial system comprises of :-
Correct Answer
Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer
Money lenders , Indigenous bankers , Lending pawn brokers
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The lender of the last resort to the market is the :-
Correct Answer
RBI
Your Answer
RBI
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Credit Information report is also known as :-
Correct Answer
Credit report , Banker's report , Confidential report
Your Answer
Credit report , Banker's report , Confidential report
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Cetificate of deposit are issued by
Correct Answer
Banks
Your Answer
Banks
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A record of the holdings of GOI dated securities of each holder is contained in :-
Correct Answer
SGL pass book
Your Answer
SGL pass book
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The organised financial system includes :-
Correct Answer
Commercial banks
Your Answer
Commercial banks
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Development financial institutions have been established to cater to ________ of the industrial sector.
Correct Answer
Long term financial needs
Your Answer
Working capital needs
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DFHI was incorporated under the :-
Correct Answer
Companies Act, 1956
Your Answer
Companies Act, 1956
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The ________ meet the long and medium term credit needs of agriculture.
Correct Answer
Land Development Banks
Your Answer
Regional Rural Banks
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Certificate of deposit is a :-
Correct Answer
Usance promissory note
Your Answer
Term Deposit Receipt
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Amongst others, ICICI also provided long and medium term loans or equity finance.
Correct Answer
TRUE
Your Answer
TRUE
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EXIM Bank provides financial assistance to:-
Correct Answer
Indian Companies , Commercial Banks , Foreign Governments
Your Answer
Investment trusts , Indian Companies , Commercial Banks
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RBI sells securities through :-
Correct Answer
Auction program ,
Open market operations , Private placements
Your Answer
Open market operations
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The ultimate source of money in India is:-
Correct Answer
RBI
Your Answer
RBI
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Long term debt instruments have a maturity of :-
Correct Answer
Over one year
Your Answer
Over one year
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R B I conducts monetary control by way of O M O in :-
Correct Answer
Treasury bills , State /central Government Securities
Your Answer
Treasury bills , State /central Government Securities
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Under open market operation RBI conducts buying /selling shares/debentures of blue
chip companies.Correct Answer
FALSE
Your Answer
FALSE
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Match The Following
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Correct Answer
Your Answer
Development financial institutions
IFCI
IFCI
Organised sector
Banking System
Banking System
Unorganised sector
Indigenous banks
Indigenous banks
Mutual funds
UTI
UTI
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The Shipping Credit and Investment Company of India Ltd. has changed its name to ________ effective from October 1992.
Correct Answer
SCICI Ltd
Your Answer
SCICI Ltd
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A member's IMF Quota determines its :-
Correct Answer
Financial commitment , Voting power , Drawing power
Your Answer
Financial commitment , Voting power
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Development Financial institutions include :-
Correct Answer
State financial institutions
Your Answer
State financial institutions
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The unorganised financial system includes :-
Correct Answer
Indigenous bankers
Your Answer
Indigenous bankers
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Match The Following
Question
Correct Answer
Your Answer
Fruit Crops, Floriculture, Vegetables
Horticulture
Horticulture
Institutional studies, Dwell Time Studies
Surveys & Studies
Surveys & Studies
Agronomy, Crop Planning, Plant Protection, Farm Inputs
Crop Production
Crop Production
Canals & Rivers, Drip Irrigation
Irrigation & Drainage
Irrigation & Drainage
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The HDFC was set up in 1977 by the ________.
Correct Answer
ICICI
Your Answer
ICICI
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Instruments issued by DFIs and Banks carry :-
Correct Answer
Highest credit ratings
Your Answer
Highest credit ratings
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LIC of India was set up in :-
Correct Answer
1956
Your Answer
1818
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Secured Premium Notes are ________.
Correct Answer
Debentures
Your Answer
Debentures
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PFC is committed to the integrated development of :-
Correct Answer
Power
Your Answer
Power
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Banks issue Guarantees on behalf of their clients.
Correct Answer
TRUE
Your Answer
TRUE
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Banks authorised to deal in foreign exchange are known as Authorised Dealers.
Correct Answer
FALSE
Your Answer
TRUE
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DFHI was set up with the following objective :-
Correct Answer
To even out imbalances , To provide liquidity , To promote secondary market
Your Answer
To even out imbalances , To provide liquidity , To promote secondary market
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NABARD has taken over the entire functions of :-
Correct Answer
ARDC , ACD of RBI , RPCD of RBI
Your Answer
ARDC , ACD of RBI , RPCD of RBI
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R B I issues currency notes against the security of:-
Correct Answer
Gold bullion , Foreign securities , GOI securities
Your Answer
Gold bullion , Foreign securities , GOI securities
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The ________ has been accredited by RBI as a Primary Dealer in Governemt Securities.
Correct Answer
STCI
Your Answer
LIC of India
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The SFCs also borrow from SIDBI & IDBI.
Correct Answer
FALSE
Your Answer
TRUE
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Legally speaking Pass Through Certificates are ________ and are tradeable freely.
Correct Answer
Promissory notes
Your Answer
Promissory notes
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DFIs are the second largest issuer of ________ after the Govt and Sovereign bodies.
Correct Answer
Debt instruments
Your Answer
Debt instruments
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From time to time RBI has issued :-
Correct Answer
Straight coupon bonds , Inflation linked bonds , Zero coupon bonds
Your Answer
Inflation linked bonds , Zero coupon bonds
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The currency notes issued by RBI are legal tender everywhere in India without any limit.
Correct Answer
TRUE
Your Answer
FALSE
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HDFC was set up by NHB.
Correct Answer
FALSE
Your Answer
FALSE
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PFC also provides reform & restructuring related studies.
Correct Answer
TRUE
Your Answer
FALSE
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The ________ was set up to help corrections in BOP maladjustments.
Correct Answer
IMF
Your Answer
IMF
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The CRAFICARD recommended the establishment of ________.
Correct Answer
NABARD
Your Answer
NABARD
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NIDHIS are Trading Organisations.
Correct Answer
FALSE
Your Answer
FALSE
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HDFCs loans were linked up with________.
Correct Answer
Planned Savings
Your Answer
Planned Savings
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CPs are issued by corporate entities.
Correct Answer
TRUE
Your Answer
FALSE
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AFC's membership consists of commercial, cooperative banks and DFIs including ________.
Correct Answer
EXIM bank
Your Answer
EXIM bank
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Money Markets Instruments have a maturity of less than :-
Correct Answer
One year
Your Answer
One year
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Kisan Vikas Patra are issued through ________.
Correct Answer
Post Offices
Your Answer
Post Offices
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Liquid assets to be maintained to a stipulated ratio under Section 24 of BR Act is called :-
Correct Answer
Statutory Liquidity Ratio
Your Answer
Statutory Liquidity Ratio
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NABARD provides short term refinance for procurement activities also.
Correct Answer
TRUE
Your Answer
TRUE
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DFHI was set up jointly by :-
Correct Answer
RBI , Banks , All India Fis
Your Answer
Banks , All India Fis
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Small Savings are source of Capital Receipts for the Government.
Correct Answer
TRUE
Your Answer
TRUE
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Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer
MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
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True/False
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Mortgage Loans are loans against property.
Correct Answer
TRUE
Your Answer
TRUE
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The extent of powers enjoyed by a branch depends on the size of its ________.
Correct Answer
Business
Your Answer
Business
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Prominent Institutional Investors are :-
Correct Answer
Corporate Treasuries , Mutual Funds , Foreign Investors(FIIs)
Your Answer
Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
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PFC has been persuading State Governments restructuring of their power sector to make them viable.
Correct Answer
TRUE
Your Answer
TRUE
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Bills of Exchange and ________ are Money Market Instruments.
Correct Answer
Promissory Notes
Your Answer
Promissory Notes
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True/False
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Bank Guarantee can be Performance of financial Guarantee.
Correct Answer
FALSE
Your Answer
FALSE
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Match The Following
Question
Correct Answer
Your Answer
Inter Bank Call Money Markets
BRs, Call Money Receipts
Loans and advances
Money Market Instuments
CP, CD ,T- Bills
CP, CD ,T- Bills
Capital Market Instruments
Shares
Shares
Debt Market Instruments
GOI Securities ,Bonds
GOI Securities ,Bonds
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Account where lump sum investment is made for specific period is :-
Correct Answer
Term Deposit account
Your Answer
Term Deposit account
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CP is a usance promissory note hence it can be negotiated by endorsement & delivery.
Correct Answer
TRUE
Your Answer
FALSE
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Money Markets Instruments have a maturity of less than :-
Correct Answer
One year
Your Answer
One year
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The prominent Bond issuing PSU are :-
Correct Answer
MTNL , NTPC , SAIL
Your Answer
NTPC
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The Capital of NABARD is subscribed by World Bank.
Correct Answer
FALSE
Your Answer
FALSE
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Post Offices are popular for mobilizing small savings of the public due to :-
Correct Answer
Wide network , Tax concessions , Saftey of funds
Your Answer
Wide network , Tax concessions , Saftey of funds
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For a focus on the
SSI Sector in 1986 IDBI created :-Correct Answer
SIDF
Your Answer
SIDF
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SCICI provides domestic & foreign loans for capital equipment and________ services.
Correct Answer
Technical
Your Answer
Technical
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Non bank financial institutions undertake fund and non fund based activities.
Correct Answer
TRUE
Your Answer
TRUE
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Mutual Funds provide the benefits of ________.
Correct Answer
Portfolio management
Your Answer
Long term returns
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CRR and SLR are ________ reserves.
Correct Answer
Statutory
Your Answer
Statutory
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An ________ letter of credit cannot be canceled by the buyer without the seller's consent.
Correct Answer
Irrevocable
Your Answer
Irrevocable
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A Transaction on "payment later" basis is a :-
Correct Answer
Credit transaction
Your Answer
Credit transaction
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A Bill in banking parlance means a :-
Correct Answer
Bill of Exchange
Your Answer
Bill of Exchange
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A company issues CP to save on :-
Correct Answer
Interest cost
Your Answer
Interest cost
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IDA lends to poor countries :-
Correct Answer
By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years
Your Answer
By lending at 0% interest. , For periods up to ten years
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The Premium of ________ is obtained through obligatory reinsurance premium.
Correct Answer
GIC
Your Answer
GIC
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FIs can be classified into two categories depending on the basis of incorporation and :-
Correct Answer
Operation
Your Answer
Operation
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Basic Life insurance policies include :-
Correct Answer
Term insurance , Annuity contracts , Pension plans
Your Answer
Term insurance , Annuity contracts , Pension plans
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Long term debt instruments have a maturity of :-
Correct Answer
Over one year
Your Answer
Over one year
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True/False
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Cancellation of a Guarantee is known as "revocation".
Correct Answer
TRUE
Your Answer
TRUE
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The unorganised market is made of :-
Correct Answer
Moneylenders
Your Answer
Moneylenders
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Financial markets are the centres that provide facilities for buying and selling of ________.
Correct Answer
Financial claims and services
Your Answer
Financial claims and services
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Functions of R.O. of a bank include :-
Correct Answer
Inspection/audit , Control on branches , Grant loans/advances
Your Answer
Control on branches , Grant loans/advances
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Financial Services offered by PFC include :-
Correct Answer
Term loans , lease finance , Loan Syndication
Your Answer
Term loans , lease finance , Loan Syndication
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Functions of NIDHIs include :-
Correct Answer
Accepting Deposits , Granting loans , Encourage thrift
Your Answer
Accepting Deposits , Granting loans
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In case of a Life policy it is possible to withdraw from the obligation to contribute further premium by :-
Correct Answer
Surrendering the policy , Converting it into paid up policy , Assigning it in the open market
Your Answer
Surrendering the policy , Converting it into paid up policy , Assigning it in the open market
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Match The Following
Question
Correct Answer
Your Answer
Aquaculture ,Brackish Water
Fisheries
Fisheries
Ploughing, weeding, transplantation
Seasonal Agricultural Operations
Seasonal Agricultural Operations
Market Yards, Storage & Warehousing
Agricultural Marketing
Agricultural Marketing
Hill ,Tribal Area development
Area Development
Area Development
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Mutual fund has main entities like :-
Correct Answer
Sponsor , Trust , Asset Management company
Your Answer
Sponsor , Trust , Asset Management company
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Financial institutions deal in :-
Correct Answer
Financial assets
Your Answer
Financial assets


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