SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)

Program: PGDBA
Subject: Financial Institutions & Banking

Sample Questions:
Section I: Subjective Questions

1. Write a note on Export Import Bank of India.

2. Write a note on Industrial credit and investment corporation of India (ICICI).

3. What is the International Finance Corporation (IFC)?

4. What is Open Market operation?

5. What is NABARD?

6. Explain the functions of National Cooperative Development Corporation (NCDC).

7. Explain recent reforms in Venture Capital Funds.

8. List out the financial services offered by the Power Finance Corporation.

Section II: Objective Questions

Multiple Choice Single Response

1. The objective of exchange control is

1] to set limits on the use of foreign exchange
2] to set limits on the use of foreign currency and coins
3] to set limits on the printing of currency notes
4] to control foreign banks
2. The foundation for today's 'retail banking' lies in the fact that
1] there is a profit involved in accepting deposits and lending money due to difference
in interest rates
2] there is a profit involved in accepting deposits and lending money due to various
amounts involved
3] retail banking can attract huge amount of deposits
4] there is a profit involved in lending money to retailers
3. Govt. of India dated securities in physical form are transferable by
1] endorsement and delivery of physical certificates
2] endorsement or delivery of physical certificates
3] delivery of physical certificates
4] endorsement of physical certificates
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Program: PGDBA
Subject: Financial Institutions & Banking

4. Govt. of India dated securities in physical form are transferable by

1] endorsement and delivery of physical certificates
2] endorsement or delivery of physical certificates
3] delivery of physical certificates
4] endorsement of physical certificates
5. From time to time, RBI prescribes a CRR which is
1] the minimum amount of cash that banks have to maintain with RBI
2] the minimum amount of cash that banks have to maintain with them
3] the minimum amount of currency that banks have to maintain with SBI
4] the minimum amount of cash that banks have to maintain with other banks
6. AFC organizes training programmes for the bank and government personnel in
1] project formulation, implementation, monitoring and evaluation
2] project formulation, monitoring and evaluation
3] project formulation, implementation and evaluation
4] project financing, implementation, monitoring and supervision
7. Many state governments have enacted the MACS Act for enabling
1] the promotion of self-reliant and vibrant societies based on thrift and self-help
2] the promotion of government reliant societies based on state support
3] the promotion of self-reliant and vibrant societies based on external help and
guidance
4] the promotion of statutory societies based on thrift and self-help
8. Money market instruments are those instruments which have
1] a maturity period of less than one year
2] a maturity period of less than six months
3] a maturity period of less than three years
4] a maturity period of less than five years
9. Pass through certificate is an instrument with
1] cash flows derived from the cash flow of another underlying instrument or loan
2] value derived from the cash flow of another underlying instrument or loan
3] cash flows derived from the income of another underlying instrument or loan
4] value derived from the income of another underlying instrument or loan
10. District Central Co-operative Banks can get 100% refinance from NABARD against
loans extended to
1] Co-operative Societies / Cultivators
2] Village Panchayats
3] Cultivators owning land of over 10 Hectares
4] Co-operative Sugar Industries
Multiple Choice Multiple Response

11. The basic objectives of SIDBI as set out in the charter for orderly growth of industry
in the small scale sector are
1] financing and promotion
2] development and co-ordination
3] infrastructural support
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Program: PGDBA
Subject: Financial Institutions & Banking

4] talent management
12. NABARD provides long term finance to state governments with the objective to
1] strengthen the share capital of co-operative credit institutions
2] increase their maximum borrowing power
3] increase their maximum lending power
4] strengthen the share capital of co-operative institutions
13. A mutual fund maximises the returns to its unit holders by
1] minimising the risk and raising its rate of return through portfolio diversification
2] having an appropriate mix of securities
3] minimising the risk by careful portfolio designing and diversification
4] having an appropriate mix of debt and equity
14. Before 1973, the role of IMF was to
1] reduce the currency exchange restrictions imposed by member countries
2] ensure currency convertibility with the goal of encouraging international trade
3] reduce the exchange rate fluctuations of member countries
4] restrict currency convertibility with the goal of encouraging international trade
15. IRDA has taken commendable initiatives in the area of
1] training and certification of insurance agents
2] encouraging the development of actuarial profession
3] recruitment of insurance agents
4] training of actuarial professionals
16. SME sector plays an important role in
1] economic growth, trade development
2] employment generation and entrepreneurship development
3] retail and consumer trade
4] capacity creation and infrastructure
17. NABARD's refinance is available to
1] State Co-operative Banks and Regional Rural Banks
2] Commercial Banks and other approved financial institutions
3] Urban Co-operative Banks and Regional Rural Banks
4] Nationalised Banks and other approved financial institutions
18. As per the pattern of investments, LIC has to invest at least
1] 50% in government and other approved securities
2] 15% in state govt. loans and 35% in shares and debentures
3] 40% in government and other approved securities
4] 25% in state govt. loans and 35% in shares and debentures
Fill in the Blanks

19. By convention, open-ended _________ companies are called 'unit trusts'.

1] investment
2] financial
3] limited
4] capital
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Program: PGDBA
Subject: Financial Institutions & Banking

20. Govt. securities are issued through the _________ route.

1] auction
2] market
3] circular
4] central
21. The interest on overdraft and cash credit facilities granted by banks is calculated on
_________ product basis.
1] daily
2] monthly
3] annual
4] half-yearly
22. Agricultural Finance Corporation Limited extended its operations internationally
since _________.
1] 1978
2] 1968
3] 1979
4] 1969
23. The best defence against market manipulation in the capital market is introduction of
_________.
1] short selling
2] long selling
3] more brokers
4] badla system
24. Agricultural Finance Corporation Limited was established in the year _________.
1] 1968
2] 1978
3] 1969
4] 1979
25. The number of training establishments run by NABARD are _________.
1] 6
2] 8
3] 3
4] 10
26. All the nationalised banks in India and almost all the private sector banks are
_________ scheduled banks.
1] commercial
2] non-commercial
3] government
4] regional
27. The Government of India set up the Export Risk Insurance Corporation in _________
in order to provide export credit insurance support to Indian exporters.
1] July, 1957
2] July, 1951
3] July, 1967
4] July, 1969
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Program: PGDBA
Subject: Financial Institutions & Banking

28. The premiums on 'with profit' policies are _________ than those on 'without profits'
policies.
1] higher
2] lower
3] equal
4] bad
State True or False

29. IDBI is a subsidiary of RBI.

30. Exim Bank took over the export financing function from ICICI.

31. MFIs are prohibited from paying any dividend to its members.

32. NHB lends directly in respect of projects undertaken by leading real estate firms in
the country.
33. Buffer Stock Financing Facility of IMF makes available resources to finance
contributions to the approved buffer stock scheme.
34. NCDC's financial assistance is individual beneficiary oriented and is not meant for
the institutional development of the co-operatives.
35. The tradable form of a loan is termed as a debt instrument.

36. Nidhis are not commercial institutions and are broadly run on co-operative principles.

37. North Eastern Equity Fund assistance is provided in the form of a subsidy to tiny and
SSI industrial units and need not be repaid.
38. Micro Finance Institutions are concentrated in North East region of the country where
the rural branch network of formal banks is excellent.

Match the Following

39. 1] CRR 1] Cash Reserve Ratio

2] SRR 2] Statutory Reserve Ratio

3] ZO 3] Zonal Office

4] AO 4] Area Office

5] Administrative Office

6] Static reserve Ratio

40. 1] NGO 1] Non-Governmental Organisation

 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Program: PGDBA
Subject: Financial Institutions & Banking

2] RDFI 2] Regional Development Financial

Institution

3] NEEF 3] North East Equity Fund

4] TEDF 4] Techno-Economic Development Fund

5] North East Development Fund

6] Technical Entrepreneurs Development

Fund

41. 1] Supplier's Credit 1] term credit to overseas importers

2] Pre-shipment Credit 2] credit for purchase of raw materials

3] EXIM Bank 3] development of exports

4] Term Credit 4] credit for purchase of plant and

equipment’s

5] credit for takeover and acquisitions

6] term credit to overseas exporters

42. 1] IMF 1] International Monetary Fund

2] IBRD 2] International Bank for Reconstruction

and Development

3] IFC 3] International Finance Corporation

4] IDA 4] International Development

Association
5] International Financial Corporation

6] International Development Authority