Financial Institutions & Banking Combined

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank

Question 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
Multiple Choice Multiple Answer

Question IFC provides financial assistance :-
Correct Answer Through loans , Through purchase of shares , For economic

development
Your Answer Largely as aid , Through loans
Select The Blank

Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Six months or less

Question From time to time RBI has issued :-
Correct Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
bonds
Your Answer Straight coupon bonds , Inflation linked bonds , Zero coupon
bonds

Question 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
Multiple Choice Single Answer

Question The type of banking involving a small number of Large
Customers viz.Corporates & multinationals is :-
Correct Answer Wholesale Banking
Your Answer Wholesale Banking
True/False
Question NABARD is an apex institution in the field of Integrated Rural
Development.
Correct Answer True
Your Answer True
Select The Blank

Question The ________ are buy and hold investors and almost never
trade on their investments.
Correct Answer Provident Funds
Your Answer Mutual Funds

Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation

Question 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 ,

Question IDA lends to poor countries : -
Correct Answer By lending at 0% interest. , For periods up to ten years , By

borrowing from IBRD
Your Answer By borrowing from IBRD , By lending at 0% interest. , For
periods up to ten years

Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Question Treasury bills are issued by :-
Correct Answer RBI
Your Answer RBI
True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True
True/False
Question No TDS is deducted on Interest paid on CDs.
Correct Answer True
Your Answer True

Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government regulation and control

Question Mutual fund has main entities like :-
Correct Answer Sponsor , Trust , Asset Management company
Your Answer Sponsor , Trust , Asset Management company

Question Prominent Institutional Investors are :-
Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds
Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Question 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

Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Question SIDCs & SIICs are under the control of :-
Correct Answer State Governments
Your Answer State Governments
True/False
Question PFC has been persuading State Governments restructuring of
their power sector to make them viable.
Correct Answer True
Your Answer True
Match The Following

Question Correct Answer Your Answer
Advances Loans/cash credits Loans/cash credits
Cash withdrawal facility ATM ATM
Remittances MT/DD/TT/EFT MT/DD/TT/EFT
Government business Collection of taxes Collection of taxes
Select The Blank

Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected
Select The Blank

Question The CRAFICARD recommended the establishment of
________.
Correct Answer NABARD
Your Answer NABARD

Question The objective NEF Scheme of SIDBI is to provide equity support
to :-
Correct Answer New Units in tiny Sector , New Units in Small Sector , Existing
units in tiny & small scale sector
Your Answer New Units in tiny Sector , New Units in Small Sector , Existing

Question Which of the following institution was set up as a subsidy of RBI
in 1964?
Correct Answer IDBI
Your Answer IDBI
Select The Blank

Question Kisan Vikas Patra are issued through ________.
Correct Answer Post Offices
Your Answer Post Offices

Question DFHI was incorporated under the :-
Correct Answer Companies Act, 1956
Your Answer Companies Act, 1956

Question Which one of the following is not a deposit account?
Correct Answer Cash Credit account
Your Answer Cash Certificate
True/False
Question CP is a usance promissory note hence it can be negotiated by
endorsement & delivery.
Correct Answer True
Your Answer False

Select The Blank
Question The ________ meet the long and medium term credit needs of
agriculture.
Correct Answer Land Development Banks
Your Answer Regional Rural Banks

Question Zero Coupon Bonds are issued at a : -
Correct Answer Discount to face value
Your Answer Discount to face value
True/False
Question NABARD provides Refinance for Marketing of Crops.
Correct Answer True
Your Answer False
True/False
Question The Capital of NABARD is subscribed by World Bank.
Correct Answer False
Your Answer False

Question Soft Loan Scheme for modernisation is provided by :-
Correct Answer IFCI , ICICI , SIDBI
Your Answer ICICI
True/False
Question In case of T-Bills potential investors have to put in competitive
bids.
Correct Answer True
Your Answer True
Match The Following

Development financial IFCI IFCI

institutions
Organised sector Banking System Banking System
Unorganised sector Indigenous banks Indigenous banks
Mutual funds UTI UTI
True/False
Question Non bank financial institutions undertake fund and non fund
based activities.
Correct Answer True
Your Answer True

Question Instruments issued by DFIs and Banks carry :-
Correct Answer Highest credit ratings
Your Answer Highest credit ratings

Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF
True/False
Question Amongst others, ICICI also provided long and medium term
loans or equity finance.
Correct Answer True
Your Answer True
Select The Blank

Question Interest on advances is generally calculated on ________
products.
Correct Answer Daily
Your Answer Fortnightly
Select The Blank

Question The ________ has been accredited by RBI as a Primary Dealer
in Governemt Securities.
Correct Answer STCI
Your Answer GIC
Select The Blank

Question ________ is merely an asset created out of book entries.
Correct Answer SDR
Your Answer SDR

Question Development Financial Institutions provide finance to the needy
Correct Answer Corporates & govt. institutions
Your Answer Corporates & govt. institutions


Question SIDBI provides :-
Correct Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
Your Answer Refinance , Rediscounting of Bills , Financial support to SSIDC
True/False
Question NABARD does not provide Refinance for stocking & distribution
of Chemical Fertilisers.
Your Answer False

Question Which of the following services is not provided by Commercial
banks?
Correct Answer Deposit Insurance
Your Answer Deposit Insurance

Question IDBI has helped in the establishment of :-
Correct Answer EXIM Bank
Your Answer IFCI
Select The Blank

Question DFIs are the second largest issuer of ________ after the Govt
and Sovereign bodies.
Correct Answer Debt instruments
Your Answer Debt instruments
True/False
Question A Cheque is a Negotiable Instrument.
Correct Answer True
Your Answer True
True/False
Question State loans are much less liquid than GOI Securities.
Correct Answer True
Your Answer True

Question IIBI (formerly known as IRBI )undertakes :-
Correct Answer Merchant Banking activities , Lease or hire purchase finance ,

Consultancy & managerial services
Your Answer Merchant Banking activities , Lease or hire purchase finance ,
True/False
Question Development financial institutions primarily lend to Agriculture
sector.
Your Answer False
True/False
Question Banks do not invest in the GOI securities .
Your Answer False
Select The Blank

Question NABARDs Criteria for Refinance covers Technical ________ of
the project.
Correct Answer Feasibility
Your Answer Feasibility
True/False
Question IMF discourages excessive use of its resources by imposing a
surcharge on large loans.
Correct Answer True
Your Answer True
Select The Blank

Question As a banker to the Government, RBI accepts Government
deposits at ________% interest.
Correct Answer 0
Your Answer 0
Select The Blank

Question HDFCs loans were linked up with________.
Correct Answer Planned Savings
Your Answer Planned Savings

Question Other than Tourism, International funds remittances comprise of
:-
Correct Answer Donations/Charity , Payments of Salaries , Payments of Royalty
Your Answer Donations/Charity , Payments of Royalty

Question PFC is committed to the integrated development of :-
Correct Answer Power
Your Answer Power

Question A major part of the credit of SFCs went to :-
Correct Answer SSI units
Your Answer SSI units

Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year
Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme for
modernisation is also undertaken by IDBI.
Correct Answer ICICI
Your Answer ICICI
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True
Select The Blank

Question NHB at present has a ________ Capital of Rs. 350 crores.
Correct Answer Paid-up
Your Answer Paid-up
Select The Blank

Question The term ________ refers to the act of a bank extending finance
to the seller against a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation
True/False
Question Under MIGA the World bank offers various forms of Political
Insurance.
Correct Answer True
Your Answer True
Select The Blank

Question The loans under________ are based on Poverty Reduction
Strategy Paper.
Correct Answer PRGF
Your Answer PRGF

Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Marine insurance , Fire insurance , Miscellaneous

Question FIs can be classified into two categories depending on the basis
of incorporation and :-
Correct Answer Operation
Your Answer Size

Question The main objective of ICICI was :-
Correct Answer To augment export finance in India , To channelise World

Bank's funds to industries in India , To help in building up a
Capital Market in India
Your Answer To augment export finance in India , To help in building up a
Capital Market in India , To aid Rural Development in India

Question SIDCs & SIICs give loans ,guarantees & : -
Correct Answer Lease finance
Your Answer Lease finance

Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates
True/False
Question SCICI is a member of the OTCEI.
Correct Answer True
Your Answer True
Select The Blank

Question The extent of powers enjoyed by a branch depends on the size
of its ________.
Correct Answer Business
Your Answer Business
True/False
Question Gramin banks are State Owned Banks.
Correct Answer True
Your Answer False
True/False
Question NIDHIS are Trading Organisations.

Your Answer True

Question Corporate Debentures are :-
Correct Answer Long term debt instruments
Your Answer Long term debt instruments

Question 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
Match The Following

Largest borrower in the IBRD IBRD

world
International Monetary IMF IMF
Cooperation
Prevention of crises CCL CCL
Political insurance MIGA MIGA

Question The apex institution in the field of Industrial Development is :-
Correct Answer IDBI
Your Answer IDBI

Question Bills Rediscounting Scheme of IDBI was introduced in the year
:-
Correct Answer 1965
Your Answer 1965
Select The Blank

Question Development financial institutions have been established to
cater to ________ of the industrial sector.
Correct Answer Long term financial needs
Your Answer Long term financial needs
Select The Blank

Question The ________ was set up to help corrections in BOP
maladjustments.
Correct Answer IMF
Your Answer UNO

Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Question 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 , Pay interest on

deposits

Question IDBI introduced Automatic Refinance Scheme in the year :-
Correct Answer 1978
Your Answer 1975
Select The Blank

Question The ________ is the apex institution in the field of foreign trade
in India.
Correct Answer EXIM bank
Your Answer EXIM bank

Question SFCs provide finance to :-
Correct Answer Corporates , Partnerships , Proprietary firms
Your Answer Corporates , Partnerships , Proprietary firms
Match The Following

Aquaculture ,Brackish Fisheries Fisheries

Water
Ploughing, weeding, Seasonal Agricultural Irrigation & Drainage
transplantation Operations
Market Yards, Storage & Agricultural Marketing Agricultural Marketing
Warehousing
Hill ,Tribal Area Area Development Area Development
development

Question The financial Assistance provided by the IMF enables member
countries to :-
Correct Answer Rebuild resources , Stabilise currencies , Pay for imports
Your Answer Rebuild resources , Stabilise currencies , Pay for imports

True/False
Question NABARD provides short term refinance for procurement
activities also.
Correct Answer True
Your Answer True

Question Tourism promotes :-
Correct Answer Credit Card Business , International remittances , Travellers'

Cheques
Your Answer Credit Card Business , International remittances , Travellers'
Cheques
True/False
Question HDFC was set up by NHB.
Your Answer False

Question IMF articles were amended in 1978 to legalise the :-
Correct Answer Floating exchange rates
Your Answer Special drawing rights
Select The Blank

Question Syndication involves ________ sanction.
Correct Answer In principle
Your Answer In principle

Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks
Match The Following

CRR Primary reserve Prevention of speculative

requirement hoarding in
Bankers Bank Controlling the reserves of Controlling the reserves of
commercial banks commercial banks
Exchange control FEMA FEMA
OMO Government securities Secondary reserve

requirement

Question The prominent Bond issuing PSU are :-
Correct Answer MTNL , NTPC , SAIL
Your Answer MTNL , NTPC , SAIL
Select The Blank

Question The Premium of ________ is obtained through obligatory
reinsurance premium.
Correct Answer GIC
Your Answer GIC
Select The Blank

Question The ________ does not collect Savings from the Public.
Correct Answer NIICO Ltd.
Your Answer NIICO Ltd.

Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions
Match The Following

Money Market CP, T- Bills CP, T- Bills

Instruments
Negotaible Instruments Bills of exchange Bills of exchange
,Cheques ,Cheques
GOI securities ZCB, ILBonds ZCB, ILBonds
Long Term Debt PSU Bonds PSU Bonds

instruments
Select The Blank

Question NABARD took over the functions of ACD, RPCC of RBI &
________.
Correct Answer ARDC
Your Answer ARDC
Select The Blank

Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest
True/False
Question Banks lend to corporates directly.
Correct Answer True
Your Answer True
True/False
Question Banks authorised to deal in foreign exchange are known as
Authorised Dealers.
Your Answer False
True/False
Question Under open market operation RBI conducts buying /selling
shares/debentures of blue chip companies.
Your Answer False

Question Initial Quantum of resources of IMF were contributed by
members according to :-
Correct Answer Quotas fixed for members
Your Answer Quotas fixed for members

Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI

Question ECGC Board comprises of Directors representing :-
Correct Answer Government , Banking/Insurance , Trade/Industry
Your Answer Government

is contained in :-

Question Which of the following statements are not prepared on a daily
basis in branch?
Correct Answer Cash Book , Trial Balance , P/L statement
Your Answer Cash Book , Trial Balance , P/L statement

Question Size of the Quota depended upon :-
Correct Answer GNP
Your Answer GNP

Question DICGC does not insure the deposits :-
Correct Answer Of foreign Governments , Of State Cooperative Banks , Of the

Central Government
Your Answer Of foreign Governments , Of State Cooperative Banks , Of the
Central Government
Select The Blank

Question Financial markets are the centres that provide facilities for
buying and selling of ________.
Correct Answer Financial claims and services
Your Answer Goods and services

Question Agricultural Finance Consultancy Ltd(AFC) activities cover :-
Correct Answer Regional /Sectoral planning , Benchmark Surveys , Pre-

feasibility studies
Your Answer Pre-feasibility studies , Regional /Sectoral planning , Benchmark
Surveys
Select The Blank

Question In a Bank, the investment decisions are taken at ________
level.
Correct Answer Head Office
Your Answer Head Office
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Your Answer False

Question IRBI was set up with a focus on :-
Correct Answer Sick Units
Your Answer Sick Units

Question SFCs suffer from a very high ratio of: -
Correct Answer Overdues
Your Answer Overdues

Question Functions of NIDHIs include :-
Correct Answer Accepting Deposits , Granting loans , Encourage thrift
Your Answer Accepting Deposits , Granting loans , Speculation

Question 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

Question The foreign currency account maintained by an authorised
dealer with its correspondent abroad is :-
Correct Answer Nostro Account
Your Answer Nostro Account
Select The Blank

Question Mutual Funds provide the benefits of ________.
Correct Answer Portfolio management
Your Answer Bulk investment
Select The Blank

Question An ________ letter of credit cannot be canceled by the buyer
without the seller's consent.
Correct Answer Irrevocable
Your Answer Irrevocable

Question The primary sources of IMF resources are :-
Correct Answer Quotas
Your Answer Quotas

Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers

Question The first long term industrial financing corporation set up in the
country was :-
Correct Answer IFCI
Your Answer IFCI

Select The Blank
Question The HDFC was set up in 1977 by the ________.
Your Answer ICICI

Question One of the leading All India FI is :-
Correct Answer SIDBI
Your Answer LIC
True/False
Question Small Savings are source of Capital Receipts for the
Government.
Correct Answer True
Your Answer True
True/False
Question The overdraft facility is also known as Cash credit facility.
Correct Answer True
Your Answer False

Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Question Duties of an International Banking unit cover :-
Correct Answer Handling foreign currency , Handling Doc. credits , Granting

lines of Credit
Your Answer Handling foreign currency , Handling Doc. credits , Granting
lines of Credit
True/False
Question The currency notes issued by RBI are legal tender everywhere
in India without any limit.
Correct Answer True
Your Answer False

Question Post Offices are popular for mobilizing small savings of the
public due to :-
Correct Answer Wide network , Tax concessions , Saftey of funds
Your Answer Low returns , Wide network , Saftey of funds

Question 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

Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional

/Sectoral planning
Your Answer Benchmark Surveys , Pre-feasibility studies , Regional
/Sectoral planning


lines of Credit
lines of Credit
Select The Blank

Question The ________ is the apex institution in the field of foreign
trade in India.
Your Answer FEDAI
True/False
Your Answer True
True/False
Question NABARD does not provide Refinance for stocking &
distribution of Chemical Fertilisers.
Your Answer False

Your Answer Power
True/False
Development.
Correct Answer True
Your Answer False
Match The Following

Insurance of all Group Insurance Group Insurance

employees of a Firm
Premium Throughout Life Whole Life Whole Life
Fixed Period Insurance Endowment Endowment
Insurance of ocean Marine Insurance Marine Insurance

Cargo
Select The Blank

Question DFIs are the second largest issuer of ________ after the
Govt and Sovereign bodies.
True/False
Question Mortgage Loans are loans against property.
Correct Answer True
Your Answer True
Select The Blank

Your Answer Revocable

Question Liabilities of Insurance Cos are mostly :-
Correct Answer Long term
Your Answer Long term
Select The Blank

Correct Answer 0
Your Answer 0.05

Question Bills Rediscounting Scheme of IDBI was introduced in the
year :-
Correct Answer 1965
Your Answer 1975

Your Answer Banking Regulation Act,1949



Question The first development Bank of India, established in 1948 was
:-
Correct Answer IFCI
Your Answer IFCI
True/False
based activities.
Correct Answer True
Your Answer True

Question Under Project Finance Scheme IDBI provides assistance for
:-
True/False
Correct Answer True
Your Answer True
Select The Blank



Your Answer Over three years

basis in branch?
Your Answer Audited Balance Sheet , Trial Balance , P/L statement
True/False
Correct Answer True
Your Answer True

True/False
Government.
Correct Answer True
Your Answer False

Question Treasury Bills are issued by the :-
Correct Answer RBI
Your Answer RBI

Question Account where lump sum investment is made for specific
period is :-
Correct Answer Term Deposit account
Your Answer Term Deposit account

Question The apex institution in the field of foreign trade in India is :-
Your Answer EXIM Bank

Question Basic Life insurance policies include :-
Correct Answer Term insurance , Annuity contracts , Pension plans
Your Answer Term insurance , Annuity contracts , Pension plans
Select The Blank

Your Answer ICICI


Your Answer Lease or hire purchase finance , Consultancy & managerial

services , Rural credit activities
Select The Blank

Question Syndication of Loans Globally does not involve any funds as
it is ________ activity.
Correct Answer Non-fund based
Your Answer Non-fund based

Select The Blank

Correct Answer SDR
Your Answer EFF


Your Answer Global Banking
Select The Blank

Question The extent of powers enjoyed by a branch depends on the
size of its ________.

Match The Following

Inter Bank Call Money BRs, Call Money Currencies

Markets Receipts
Money Market CP, CD ,T- Bills CP, CD ,T- Bills
Instuments
Capital Market Shares Shares
Instruments
Debt Market Instruments GOI Securities ,Bonds Shares
Select The Blank

Question 55% of HUDCO loans are earmarked for________& low
income groups.
Correct Answer Weaker sections
Your Answer Weaker sections
True/False
Authorised Dealers.
Your Answer False

Question The financial Assistance provided by the IMF enables
member countries to :-
Select The Blank

Question The repayment holiday period is also known as ________
period.
Correct Answer Moratorium
Your Answer Moratorium

Question A non-scheduled bank does not deal in :-
Correct Answer Foreign Exchange
Your Answer Foreign Exchange

Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Public sector

Companies

True/False
Your Answer False

banks?

Your Answer IFCI
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True


True/False
sector.
Your Answer False
True/False
Your Answer False
Select The Blank

the project.

True/False
Correct Answer True
Your Answer True
Select The Blank

Correct Answer 0
Your Answer 0
Select The Blank


:-

Your Answer Power



Select The Blank

Your Answer ICICI
True/False
Correct Answer True
Your Answer True
Select The Blank

Your Answer Paid-up
Select The Blank

True/False
Insurance.
Correct Answer True
Your Answer True
Select The Blank

Strategy Paper.
Correct Answer PRGF
Your Answer PRGF


Your Answer Size



Question SIDCs & SIICs give loans ,guarantees & :-

True/False
Correct Answer True
Your Answer True
Select The Blank

of its ________.

True/False
Correct Answer True
Your Answer False
True/False
Your Answer True


Match The Following


world
Cooperation

Correct Answer IDBI
Your Answer IDBI

:-
Correct Answer 1965
Your Answer 1965
Select The Blank

Select The Blank

maladjustments.
Correct Answer IMF
Your Answer UNO



deposits

Correct Answer 1978
Your Answer 1975
Select The Blank

in India.

Match The Following


Water
Warehousing
development

countries to :-

Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning
Your Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral planning

Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit
Your Answer Handling foreign currency , Handling Doc. credits , Granting lines of Credit
Select The Blank

Question The ________ is the apex institution in the field of foreign trade in India.
Your Answer FEDAI
True/False
Your Answer True
True/False
Question NABARD does not provide Refinance for stocking & distribution of
Chemical Fertilisers.
Your Answer False

Your Answer Power
True/False
Development.
Correct Answer True
Your Answer False
Match The Following

Insurance of all employees of Group Insurance Group Insurance

a Firm
Insurance of ocean Cargo Marine Insurance Marine Insurance
Select The Blank

Question DFIs are the second largest issuer of ________ after the Govt and
Sovereign bodies.
True/False
Correct Answer True
Your Answer True
Select The Blank

Question An ________ letter of credit cannot be canceled by the buyer without the
seller's consent.

Select The Blank

Question As a banker to the Government, RBI accepts Government deposits at
________% interest.
Correct Answer 0
Your Answer 0.05

Question Bills Rediscounting Scheme of IDBI was introduced in the year :-
Correct Answer 1965
Your Answer 1975




Question The first development Bank of India, established in 1948 was :-
Correct Answer IFCI
Your Answer IFCI
True/False
Question Non bank financial institutions undertake fund and non fund based
activities.
Correct Answer True
Your Answer True

True/False
Correct Answer True
Your Answer True
Select The Blank




Question Which of the following statements are not prepared on a daily basis in
branch?
True/False
Correct Answer True
Your Answer True
True/False
Question Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer False

Correct Answer RBI
Your Answer RBI

Question Account where lump sum investment is made for specific period is :-



Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme for modernisation
is also undertaken by IDBI.
Your Answer ICICI

Correct Answer Merchant Banking activities , Lease or hire purchase finance , Consultancy
& managerial services
Your Answer Lease or hire purchase finance , Consultancy & managerial services ,
Rural credit activities
Select The Blank

Question Syndication of Loans Globally does not involve any funds as it is ________
activity.

Select The Blank

Correct Answer SDR
Your Answer EFF


Question The type of banking involving a small number of Large Customers
viz.Corporates & multinationals is :-
Select The Blank

Question The extent of powers enjoyed by a branch depends on the size of its
________.

Match The Following

Inter Bank Call Money BRs, Call Money Receipts Currencies

Markets
Money Market Instuments CP, CD ,T- Bills CP, CD ,T- Bills
Capital Market Instruments Shares Shares
Select The Blank

Question 55% of HUDCO loans are earmarked for________& low income groups.
True/False
Question Banks authorised to deal in foreign exchange are known as Authorised
Dealers.
Your Answer False

Question The financial Assistance provided by the IMF enables member countries to
:-
Select The Blank

Question The repayment holiday period is also known as ________ period.


Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Public sector Companies

Select The Blank


Question IFC provides financial assistance :-
Correct Answer Through loans , Through purchase of shares , For economic

development
Your Answer Largely as aid , Through loans
Select The Blank


bonds
bonds


Your Answer Wholesale Banking

True/False
Development.
Correct Answer True
Your Answer True
Select The Blank

Question The ________ are buy and hold investors and almost never
trade on their investments.
Correct Answer Provident Funds
Your Answer Mutual Funds



Question IDA lends to poor countries :-
Correct Answer By lending at 0% interest. , For periods up to ten years , By

borrowing from IBRD



Correct Answer RBI
Your Answer RBI
True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True



Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

is contained in :-


Question SIDCs & SIICs are under the control of :-
Correct Answer State Governments
Your Answer State Governments
True/False
Correct Answer True
Your Answer True
Match The Following

Advances Loans/cash credits Loans/cash credits
Cash withdrawal facility ATM ATM
Remittances MT/DD/TT/EFT MT/DD/TT/EFT
Government business Collection of taxes Collection of taxes
Select The Blank

Select The Blank

Question The CRAFICARD recommended the establishment of
________.
Correct Answer NABARD
Your Answer NABARD

to :-
Your Answer New Units in tiny Sector , New Units in Small Sector , Existing

in 1964?
Correct Answer IDBI
Your Answer IDBI
Select The Blank


Your Answer Companies Act, 1956

Question Which one of the following is not a deposit account?
Correct Answer Cash Credit account
Your Answer Cash Certificate
True/False
Correct Answer True
Your Answer False

Select The Blank
Question The ________ meet the long and medium term credit needs of
agriculture.
Correct Answer Land Development Banks
Your Answer Regional Rural Banks

Question Zero Coupon Bonds are issued at a : -
True/False
Correct Answer True
Your Answer False
True/False
Your Answer False

Question Soft Loan Scheme for modernisation is provided by :-
Correct Answer IFCI , ICICI , SIDBI
Your Answer ICICI
True/False
bids.
Correct Answer True
Your Answer True
Match The Following

Development financial IFCI IFCI

institutions
True/False
based activities.
Correct Answer True
Your Answer True

Question Instruments issued by DFIs and Banks carry :-
Correct Answer Highest credit ratings
Your Answer Highest credit ratings

Correct Answer SIDF
Your Answer SIDF
True/False
Question Amongst others, ICICI also provided long and medium term
loans or equity finance.
Correct Answer True
Your Answer True
Select The Blank

Question Interest on advances is generally calculated on ________
products.
Correct Answer Daily
Your Answer Fortnightly
Select The Blank

Question The ________ has been accredited by RBI as a Primary Dealer
in Governemt Securities.
Correct Answer STCI
Your Answer GIC
Select The Blank

Correct Answer SDR
Your Answer SDR

Question Development Financial Institutions provide finance to the needy
Correct Answer Corporates & govt. institutions
Your Answer Corporates & govt. institutions
True/False
Question NABARD provides short term refinance for procurement
activities also.
Correct Answer True
Your Answer True


Cheques
Cheques
True/False
Your Answer False

Question IMF articles were amended in 1978 to legalise the :-
Correct Answer Floating exchange rates
Your Answer Special drawing rights

Select The Blank
Your Answer In principle

Match The Following

CRR Primary reserve Prevention of speculative

requirement hoarding in
Bankers Bank Controlling the reserves of Controlling the reserves of
commercial banks commercial banks
Exchange control FEMA FEMA
OMO Government securities Secondary reserve

requirement

Select The Blank

Correct Answer GIC
Your Answer GIC
Select The Blank


Match The Following

Money Market CP, T- Bills CP, T- Bills

Instruments
Negotaible Instruments Bills of exchange Bills of exchange
,Cheques ,Cheques
GOI securities ZCB, ILBonds ZCB, ILBonds
Long Term Debt PSU Bonds PSU Bonds

instruments
Select The Blank

Question NABARD took over the functions of ACD, RPCC of RBI &
________.
Correct Answer ARDC
Your Answer ARDC
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Authorised Dealers.
Your Answer False

True/False
Question Under open market operation RBI conducts buying /selling
shares/debentures of blue chip companies.
Your Answer False

Question Initial Quantum of resources of IMF were contributed by
members according to :-
Correct Answer Quotas fixed for members
Your Answer Quotas fixed for members

Correct Answer RBI
Your Answer RBI

Your Answer Government

is contained in :-

basis in branch?
Your Answer Cash Book , Trial Balance , P/L statement

Question Size of the Quota depended upon :-
Correct Answer GNP

Your Answer GNP

Question DICGC does not insure the deposits :-
Correct Answer Of foreign Governments , Of State Cooperative Banks , Of the

Central Government
Your Answer Of foreign Governments , Of State Cooperative Banks , Of the
Central Government
Select The Blank


Correct Answer Regional /Sectoral planning , Benchmark Surveys , Pre-

feasibility studies
Surveys
Select The Blank

Question In a Bank, the investment decisions are taken at ________
level.
True/False
Your Answer False


Question SFCs suffer from a very high ratio of: -

Question Functions of NIDHIs include :-
Correct Answer Accepting Deposits , Granting loans , Encourage thrift
Your Answer Accepting Deposits , Granting loans , Speculation

Your Answer Treasury bills , State /central Government Securities

Question The foreign currency account maintained by an authorised
dealer with its correspondent abroad is :-
Correct Answer Nostro Account
Your Answer Nostro Account
Select The Blank

Your Answer Bulk investment
Select The Blank


Question The primary sources of IMF resources are :-
Correct Answer Quotas
Your Answer Quotas


Question The first long term industrial financing corporation set up in the
country was :-
Correct Answer IFCI
Your Answer IFCI
Select The Blank

Your Answer ICICI

Question One of the leading All India FI is :-
Correct Answer SIDBI
Your Answer LIC
True/False
Government.
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer False

Your Answer RBI Act


lines of Credit
lines of Credit
True/False
Question The currency notes issued by RBI are legal tender everywhere
in India without any limit.
Correct Answer True
Your Answer False

public due to :-
Your Answer Low returns , Wide network , Saftey of funds

Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam
Ltd
Ltd

True/False
Your Answer False

banks?

Your Answer IFCI
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True


True/False
sector.
Your Answer False

True/False
Your Answer False
Select The Blank

the project.
True/False
Correct Answer True
Your Answer True
Select The Blank

Correct Answer 0
Your Answer 0
Select The Blank


:-


Your Answer Power


Select The Blank

Your Answer ICICI
True/False
Correct Answer True
Your Answer True
Select The Blank

Your Answer Paid-up
Select The Blank

True/False
Insurance.
Correct Answer True
Your Answer True
Select The Blank

Strategy Paper.
Correct Answer PRGF
Your Answer PRGF


Your Answer Size





True/False
Correct Answer True
Your Answer True
Select The Blank

of its ________.
True/False
Correct Answer True
Your Answer False
True/False
Your Answer True


Match The Following


world
Cooperation

Correct Answer IDBI
Your Answer IDBI

:-
Correct Answer 1965
Your Answer 1965
Select The Blank

Select The Blank

maladjustments.
Correct Answer IMF
Your Answer UNO



deposits

Correct Answer 1978
Your Answer 1975
Select The Blank

in India.

Match The Following


Water
Warehousing
development

countries to :-

Select The Blank
Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Select The Blank

Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.


Question The lender of the last resort to the market is the :-
Correct Answer RBI
Your Answer RBI
Select The Blank

Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial

Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost
True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True

Your Answer RBI Act

Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Select The Blank

Your Answer Three years


Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks
True/False
Correct Answer True
Your Answer True



Your Answer Fire insurance , Miscellaneous , Marine insurance
True/False
Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Your Answer False

Your Answer Money lenders , Indigenous bankers , Lending pawn brokers
True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True
Select The Blank



Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year
Select The Blank

Match The Following

Development financial institutions IFCI IFCI
Select The Blank

Your Answer ICICI

Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Correct Answer True
Your Answer True

Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Correct Answer SIDF
Your Answer SIDF
True/False
Question Issuance of CD attracts reserve requirements.
Your Answer False
True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following

NABARD Rural Development Rural Development
AFC Ltd Consultancy Consultancy
HUDCO Housing Housing
NCDC Development of Cooperatives Development of Cooperatives
True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True

Question 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

Select The Blank

Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.


Question 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
Select The Blank


Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Select The Blank

Select The Blank

________.


Correct Answer RBI
Your Answer RBI
Select The Blank

sector.

years

True/False
make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True

Your Answer RBI Act


Select The Blank



Your Answer Banks
True/False
Correct Answer True
Your Answer True



True/False
Fertilisers.
Your Answer False

True/False
Correct Answer True
Your Answer True
Select The Blank



Select The Blank

Match The Following

Select The Blank

Your Answer ICICI

True/False
Correct Answer True
Your Answer True




Correct Answer SIDF
Your Answer SIDF
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Match The Following

True/False
Correct Answer True
Your Answer True

open market
open market

Select The Blank

a letter of credit.


Select The Blank


Select The Blank

Question The Shipping Credit and Investment Company of India Ltd. has changed its
name to ________ effective from October 1992.
Select The Blank

Question AFC's membership consists of commercial, cooperative banks and DFIs
including ________.


Question The lender of the last resort to the market! is the :-
Correct Answer RBI
Your Answer RBI
Select The Blank

Question One of the objectives of NHB is to augment the ________ resources for the
housing sector.

Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up
to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to
ten years

True/False
Question PFC has been persuading State Governments restructuring of their power
sector to make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True

Your Answer RBI Act

Question The major area of AFC's specialisation included Crop Production as well a!
s:-

Select The Blank


Your Answer Government reg! ulation and control

Your Answer Banks
True/False
Correct Answer True
Your Answer True


can be :-
True/False
Your Answer False

True/False
&nbs! p; Correct Answer True
Your Answer True
Select The Blank


Select The Blank

Correct Answer &n! bsp; Rate of interest
Match The Following

Select The Blank

Your Answer ICICI

True/False
Correct Answer True
Your Answer True

Question A current account where the customer can withdraw more than the balance is
:-


&n! bsp; Correct Answer SIDF
Your Answer SIDF
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Match The Following

True/False
Correct Answer True
Your Answer True

Question 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

Select The Blank

Question The term ________ refers to the act of a bank extending finance to the seller
against a letter of credit.


Question Bonds issued by institutions through SPVs to execute infrastructure projects
are :-
Select The Blank

!

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Select The Blank

Select The Blank

________.


Correct Answer RBI
Your Answer RBI
Select The Blank

sector.

years

True/False
make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True

Your Answer RBI Act


Your Answer Financial commitment , Voting power , Draw ing power
Select The Blank



Your Answer Banks
True/False
Correct Answer True
Your Answer True


True/False
Fertilisers.
Your Answer False

True/False
Correct Answer True
Your Answer True
Select The Blank



Select The Blank

Match The Following


Select The Blank
Your Answer ICICI

True/False
Correct Answer True
Your Answer True




Correct Answer SIDF
Your Answer SIDF
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Match The Following


True/False
Correct Answer True
Your Answer True

open market
open market

Select The Blank

a letter of credit.


Select The Blank



Financial Institution and Banking
Topic PageNo
organised sector 2
financial services 2
Indian financial system 3
commercial banks 4
development financial institutions 5
insurance companies 5
other public sector financial institutions 5
post office savings 5
mutual funds 5
non banking finanical institutions 6
Reserve bank of India 9
functions of RBI 9
banker to the government 10
bankers bank 10
supervising authority 10
exchange control authority 10
promoter of financial system 11
fiscal and monetary policy 12
open market operations 12
developmental financial institutions 17
industrial finance corporation of India 17
Industrial development bank of india - idbi 18
industrial credit and investment corporation of india Ltd - icici 19
irbi 20
sfcs 20
sidc and siics 20
state small industries development corporation (SSIDC) 21
power finance corporation (PFC) 21
financial services offered by the corporation 21
term loans 21
lease financing 22
direct discounting of bills 22
guarantee services 22
loan syndication 22
short term loan 22
institutional development services 22
utility development plans 23
financial assistance for power sector studies 23
reform and restructuring related studies 23
reform and restructuring of SEBs 23
OFAP 23
export import bank of india 24
national bank of agriculture and rural development 24
genesis of NABARD 24
ARC 24
GOI 24
ACD 24
CRAFICARD 24
types of refinance facilities 26
interest rates 26
production credits 28
financing weavers 28
OSAO 29
refinance for marketing of crops 29
other refinance facilities 30
long term loans to state governments 30
investment credit ( medium and long term) refinance 31
shipping credit and investment company of India (SCICI) 33
principal activities 33
agricultural finance consultancy ltd (AFC) 34
area of specialisation 36
surveys and studies 38
National co-operative development corporation (NCDC) 38
finance and financing 39
procedure of santion / disbursal of assistance 40
promotional and development role 40
marketing 40
agricultural inputs 40
agro-processing industries 41
storage and cold storage 41
program for weaker sections 41
consumer business 41
area based integrated co-operative development project 42
national housing bank (NHB) 42
housing and urban development corporation (HUDCO) 44
housing development finance corporation (HDFC) 44
land development banks 45
banking sector 49
retail banking 49
cash credit 50
safe custody services for safe keeping of important documents 50
acceptance of deposits from non resident indians 51
difference between retail banking and wholesale banking 51
global banking 51
scheduled bank in india 52
commercial bank and cooperative bank 52
public sector banks 52
private sector banks 52
bank accounts 53
deposit account 53
lump sum investment 54
periodic investment 54
cash credit 54
loan syndication 54
repayment period 54
bill 55
discount 55
remittance 55
letter of credit 55
bank guarantee 56
negotiation 56
cash reserve ratio 56
statutory reserve ratio 57
note pertaining to reserve ratio 57
clearing operation 57
daily product basis 57
monthly product basis 58
repayment holiday 58
credit instruments 59
negotiable instruments 59
acceptance 59
credit report 59
syndication 59
custodial services 60
security 60
foreign exchange 60
securitisation 60
international banking 60
international trade 61
tourism 61
remittance of funds from one place to another place besides tourism 61
syndication of loans global for corporate houses 61
foreign exchange management 62
profile of a bank 62
branch banking 62
different layers of banking 62
duties of an international banking department 63
exchange operations 63
administrative functions in a bank 63
administrative units 64
banking business 65
Deposit insurance and credit guarantee corporation (DICGC) 66
export credit guarantee corporation (ECGC) 67
indian money market 73
instrument 73
comercial paper 74
certificates of deposit 75
treasury bills 75
short term debentures 75
bill of exchange 75
long term debt instruments 76
government of India dated securities (GOISEC) 76
inflation linked bonds 77
zero coupon bonds 77
state government securities (state loans) 78
public sector undertaking bonds (PSU Bonds) 78
bonds of public financial institutions (PFI) 78
corporate debentures 79
Pass through certificates (PTC) 79
issuers 79
government of India and other sovereign bodies 80
banks and development financial institutions 80
public sector undertaking (PSU ) 81
private sector companies 81
government owned or quasi governement non corporate entities 82
investors 82
banks 83
provident funds 84
mutual funds 86
trusts 86
corporate treasuries 87
foreign institutional investors 87
securities trading corporation of india (STCI) 88
discount and finance house of india 88
non banking financial intermediaries 93
LIC 93
general nature of insurance companies 93
instroduction of Life Insurance corporations 93
types and structure of insurance plans 94
general insurance corporation 96
unit trust of india 98
provident / pension funds 99
post offices 99
Non bank financial companies (NBFC) 99
investment companies 100
loan companies 102
chit funds 102
NIDHIS 103
hire purchase finance companies 104
equipment leasing finance companies 104
international monetary fund (IMF) 109
quotas 109
concessional and non concessional lending 113
poverty reduction and growth facility (PRGF) 113
stand by arrangments (SBA) 114
extended fund facility (EFF) 114
supplement reserve facility (SRF) 114
contingent credit lines (CCL) 114
compensatory financing facility (CFF) 114
emergency assistance 114
special drawing rights 114
the international bank for reconstruction and development 115
world bank 115
international finance corporation 115
international development assiciation (IDA) 116
the bank for international settlements 116
regional development agencies 116
RBI 119
non performing assets 120
out of order status 121
overdue 121
income recognition 121
reversal of income 122
appropriation of recovery in NPA 122
NPA 122
sub standard Assets 123
subtful assets 124
loss assets 124
account with temporary deficiancies 124
upgradation of loan accounts classified as NPA 125
account regularised near about the balance sheet date 125
agricultural advances 126
government guaranteed advances 128
restructuring rescheduling of loans 128
upgradation of restructured accounts 130
corporate debt restructuring (CDR systems) 131
CDR 131
stand still clause 138
category 2 CDR system 139
projects under implementation 142
assest classification 142
provisioning 145
availability of security / net worth of borrower / guarantor 145
take-out finance 145
post shipment supplier credit 145
export project finance 146
advances under rehabiliation approved by BIFR/TLI 146
provisioning norms general 146
leased assets 148
advances 150
advances covered by CGTSI guarantee 151
reserve for exchange rate fluctuations account (RERFA) 152
country risk 153
securitisation company (SC) / reconstruction company (RC) 154
writing off of NPA 155
direct finance to farmers for agricultural purposes 156
purchase of agricultural implements and machinery 156
development of irrigation potential through 156
lending to priority sector 158
priority sector advances 161
indirect finance to agriculture 163
small scale and ancillary industries 166
tiny enterprises 166
small scale service and business enterprises(SSSBE) 166
industrial estates 167
KVI sector 167
small road and water transport operators (SRWTO) 167
retail trade 168
small business 168
professional and self emplyed persons 168
state sponsored organisations for scheduled castes / scheduled tribes 169
education 170
housing 170
compsumption loans 170
loans to self help groups (SHG)/NGO/MICROEDIT 170
food and agro based processing sector 171
software industry 171
venture capital 171
investments in special bonds 173
HUDCO 174
NSIC 174
NHB 174
lines of credit 174
bills rediscounting 175
deposits in rural infrastructure development (RIDF) 175
leasing and hire purchase 175
targets for priority sector lending by scheduled commercial bank s 177
scheduled commercial banks excluding foreign banks 177
direct / indirect agricultural lending 177
small scale industries 178
DRI advances 178
Weaker sections 178
Targets for foreign banks 178
rural infrastructure developments fund (RIDF ) 180
common guidelines for priority sector advances 183
application forms 183
mode of disbursement of loan 184
repayment schedule 184
rates of interest 184
penal interest 185
inspection charges 185
insurance against fire and other risks 185
other charges 186
photographs of borrowers 186
discretionary powers 186
machinery to look into complants 186
amendments 186
Chapter – 1 : Overview of Financial markets Meaning and scope 1–5
Following groups; organized sector and unorganized sector ; financial services
Financial systems commercial banks ; development financial institutions ;
insurance companies ; other public sector financial institutions ; post office
savings bank ; national bank for agriculture and rural development ; Mutual
funds ; non – banking financial institutions
Chapter – 2 Reserve bank of India – The main functions of RBI are ; Note 9 – 12
issuing authority ; banker to the Government ; Bankers’ Bank ; Supervising
authority ; Exchange control Authority ; Promoter of Financial System ; Fiscal
and Monetary policy ; open market operations ;
Chapter – 3 – Development Financial Institutions – Introduction ; Industrial 17 – 21
Finance Corporation of India ; Industrial development bank of India ;
Industrial credit and investment corporation of India ltd., The purpose IRBI ;
SFCs ; The SIDCs and SIICs ; Functions ; state small industries development
corporations (SSIDCs) Power Finance Corporation (PFC) Financial Services
Offered by the Corporation ; Lease Financing – Direct Discounting of Bills;;
Guarantee Services; Loan Syndication ; short term loan ;
Institutional Development Services 22 - 31
Acting as an instrument for ushering in reforms in the state utilities both
financial and technical ; utility development plans ; Financial Assistance for
power sector studies ; Reform & Restructuring related studies ; Reforms &
Restructuring of SEBs ; Export import bank of India ; National Bank for
agriculture and rural development ; Genesis of NABARD
Types of refinance facilities ; interest rates ; production credits ; Other
refinance facilities ; investment credit (Medium and long term) Refinance
Shipping credit and investment company of India (SCICI) 33 – 37
Agricultural Finance Consultancy Ltd (AFC)
Membership ; Organization ; Services ; Area of specialization ; surveys &
studies ; crop production ; Forestry ; Irrigation & Drainage ; Agricultural
Engineering ; Horticulture & Plantation ; Fisheries ; Livestock & Dairy ;
Agricultural & Livestock Marketing ; Agri-Business & Agro-Industries ; Area
Development Planning ; Agricultural & Rural Credit ; Project Formulation &
Appraisal ; Institution Building ;
Social Sector Development ; Remote Sensing Application & Resources 38 – 41
Management Centre ; Training & Manpower Development ; Rural
Infrastructure ; Surveys and Studies ; National Co-operative Development
Corporation (NCDC) ; Genesis ; Functions ; Organization and Management ;
Finance and Financing ; Purposes for which assistance is provided ; Procedure
of sanction / disbursal of assistance ; Promotional and development role ;
Activities and program ; Marketing ; Agricultural inputs ; Agro- Processing
industries ; Sugar ; Spinning Mill ; Others ; Storage and Cold Storage ; Storage
; Cold Storage ; Program for weaker sections ; Consumer business
Are based integrated co-operative development project ; National housing bank 42 – 45
(NHB) Role and functions in Housing sector ; Role NHB; Housing and urban
development corporation (HUDCO); Housing development finance
corporation (HDFC) ; land development banks ;
Chapter - 4 – Banking Sector – What is bank and what is banking Extending 49 – 51
financial assistance to exports on soft terms ; safe custody services for safe
keeping of important documents ; acceptance of deposits from non-resident
Indians ; difference between retail banking and wholesale banking
What is a schedule bank in India ; What is the difference between a 52 – 53
commercial bank and a co-operative bank ; different bank accounts – deposit ;
deposit account without withdrawals facility – different categories ;
Different bank accounts – advances and loans ; cash credit loan ; repayment 54 – 58
period ; banking terms often used / common banking practices ; discount ;
remittance ; letter of credit ; advantage ; Bank guarantee ; example of financial
guarantee example of performance guarantee ; letters of credit and bank
guarantees play a very important role in international banking statutory
Reserve ratio ; Note pertaining to reserve ratio ; clearing operation ; daily
product basis ; repayment holiday
Credit instruments ; Negotiable instruments ; acceptance ; credit report ; 59 -61
syndication ; custodial service ; security ; foreign exchange ; securitization ;
international banking internal trade tourism ; remittance of funds from one
place to another place besides tourism / international trade ; Syndication of
loans globally for corporate houses ;
Accessing international market for equity / borrowing in the form of ADR / 62 – 63
GDR and Ero Bonds Etc., Foreign exchange management ; profile of a bank
different layers of banking operations in India in general ; what are the duties
of an international banking department? Exchange operations administrative
functions in a bank ; different administrative units in a bank
Typical functions of different administration units of a bank ; at the head office 64 – 68
level ; banking business vs. other business ; deposit insurance and credit
guarantee corporation (DICGC) ; Export credit guarantee corporation (ECGC)
Chapter – 5 Indian Money Market – Indian Money Market ; instruments ; 73 – 77
Money market instruments ; commercial paper (CP) certificates of deposit
(CD) ; Treasury Bills (T – Bills); long term debt instruments ; government of
India dated securities (GOISECs) ; New types of Goisecs ;
State government securities (State Loans) ; Public Sector Undertaking Bonds 78 - 83
(PSU Bonds ) ; Bonds of public financial institutions (PFIs) Corporate
debentures ; Pass Through Certificates (PTSs) Issuers ; Government of India
and other sovereign bodies ; Banks and development financial instructions ;
public sector undertaking (PSUs) private sector companies ; Government
owned or quasi government non corporate entities ; investors ; banks ; banks ;
Insurance companies ; provident funds ; Several factors have contributed to the 84 – 89
growth of PFs in India ; Mutual funds ; trusts ; corporate treasuries ; foreign
instructional investors ; securities trading corporation of India ltd., (STCI) ;
discount and finance house of India;
Chapter – 6 – Non Banking Financial intermediaries 93 - 97
LIC ; General Nature of Insurance Companies ; Introduction of Life Insurance
Corporations ; Types and structure of insurance plans ; valuation of life policy
; growth of life business and fund ; investment pattern and policy ; general
insurance corporation ; organization ; types and structure of business; income
and investment pattern
Unit trust of India and other mutual funds ; provident / pension funds; post 98-101
offices ; other non-bank financial companies’ (NBFCs) ; Investment
companies ;
Loans companies chit funds ; nidhis functions ; accepting deposits loan and 102 – 105
advances ; other aspects ; Hire – purchase finance companies ; functions ;
installment – credit ; financing of purchase of equipment, vehicles etc. ;
purchase of old assets ; consumer credit ; equipment leasing finance
companies;
Chapter – 7 ; International Financing agencies – International monetary Fund 109 – 113
(IMF) ; Funding facilities ; Schemes of the IMF funding ; concessional and
non-concessional lending ; IMF Facilities ;
poverty reduction and growth facility ; stand – by arrangement ; extended fund 114 – 117
facility ; supplemental reserve facility ; contingent credit lines ; compensatory
financing facility ; emergency assistance ; special drawing rights ; the
international bank for reconstruction and development ; international finance
corporation ; 1956; international development association ; the bank for
international settlements ; regional development agencies ; European bank for
reconstruction and development;
Important regulatory instructions issued by the RBI ; contents ; general ; 119 – 123
definitions ; non – performing assets ; year ending march 31 specified period ;
out of order status ; overdue ; income recognition ; income recognitions ;
income recognition – policy ; reversal of income this will apply to government
guaranteed accounts also ; appropriation of recovery in NPAs ; interest
application ; reporting of NPAs; Asset classification ; categories of NPAs ; sub
– standard assets ; NPA for a period less than or equal to 18 months ;
Guidance note on asset classifications ; provisioning norms ; doubtful assets 124 – 125
loss assets ; guidelines for classification off assets ; accounts with temporary
deficiencies ; up gradation of loan accounts classified as NPAs ; Accounts
regularized near about the balance sheet date ;
Asset classification to be borrower – wise and not facility wise ; ; advances 126-127
under consortium arrangements ; record of recovery of the individual member;
accounts where there is a erosion in the value of security ; advances to
PACs/FSS ceded to commercial banks ; advances against term deposits NSC’s
KVP / IVP ; loans with moratorium for payment of interest ; agricultural
advances;
Government guaranteed advances ; restructuring of loans ; upgradation of 128- 134
restructured accounts; general ; corporate debt restructuring (CDR System)
Background ; objective structure CDR system in the country will have a three
tier structure ; cdr standing forum and its core group ; cdr empowered group ;
cdr cell ;
Other features ; eligibility criteria ; reference to CDR system ; legal basis ; 135 – 140
stand – still clause ; additional finance ; exit option ; conversion option ;
category 2 cdr system ; accounting treatment for restructured accounts ;
Disclosure ; implementation of the revised guidelines ; projects under 141 – 145
implementation ; asset classification ; category II ; category III ; income
recognition ; provisioning ; availability of security / net worth of borrower /
guarantor ; take – out finance ; post – shipment supplier’s credit
Export project finance ; advances under rehabilitation approved by BIFR / RLI 146 – 149
; provisioning norms general ; loss assets ; doubtful assets ; period for which
the advance has been considered as doubtful ; provisions requirement ;
valuation of security for provisioning purposes ; sub-standard assets ; standard
assets ; floating provisions ; provisions on leased assets sub – standard assets ;
doubtful assets ; period age provisions loss assets ; loss assets ; guidelines for
provisions under special circumstances ; government guaranteed advances
Advances granted under rehabilitation packages approved by BIFR / term 150 – 153
lending institutions ; treatment of interest suspense account ; Advances
covered by ECG / DICGC guarantee ; advance covered by CGTSI guarantee ;
Take out finance ; reserve for exchange rate fluctuations account (RERFA) ;
Provisioning for country risk ; Risk category ; ECGC classification ;
Provisioning requirement (per cent)
Provisioning norms for sale of financial assets to securitization company (SC) / 154-156
Reconstruction company (RC) ; writing off of NPAs
Annexure – II Revelant extract of the list of direct agricultural advances from
the Master Circular on lending to priority sector – RPCD. Plan.BC. 42A /
01.09.01/ 2001-02 dated 11 November, 2002.
Direct Finance of farmers for Agricultural Purposes ; purchase of agricultural 156 - 158
implements and machinery ; development of irrigation potential through ;
reclamation and loan development schemes ; construction of farm buildings
and structure etc., ; construction and running of storage facilities ; production
and processing of hybrid seeds for crops ; payment of irrigation charges etc., ;
other types of direct finance of farmers ; Lending to Priority Sector
Section – 1 – Classification of Priority Sector advances ; Agriculture ; direct 161 – 165
Finance to Framers for Agricultural Purposes ; Indirect Finance to agriculture ;
small scale industries ; small scale and ancillary industries ;
Tiny Enterprises ; small scale service & Business Enterprises (SSSBE’s) ; 166 - 167
Indirect finance in the small – scale industrial sector will include credit to ;
industrial estates KVI Sector ; Other Activities / Borrowers in the Priority
sector ; Small road & Water Transport operators (SRWTO)
Retail trade – advances granted to small business ; professional & self – 168 – 169
employed persons ; state sponsored organizations for scheduled castes /
scheduled tribes
Education ; housing ; consumption loans ; loans to self – help groups (SHGs) / 170 – 171
NGOs / Microcredit ; Food and agro – based processing sector ; software
industry ; venture capital
Section – II ; Certain Types of Funds deployment eligible as priority sector 173 - 174
advances ; State Financial Corporations (SFCs) / State Industrial Development
Corporations (SIDCs) ; Rural Electrification Corporation (REC) ; Nabard ;
Small industries development Bank of India (SIDBI) ; the National industries
corporation ltd., (NSIC) ; National housing bank (NHB) ; Housing & Urban
development corporation (HUDCO) ;
Other investments ; lines of credit ; bills rediscounting ; deposits in rural 174 – 175
infracture development fund (RIDF) leasing and hire purchase
Section – III – Targets for priority sector lending by scheduled commercial 177
banks (excluding RRBs) ; Main Targets for all scheduled commercial banks
excluding foreign banks ; sub-targets for all scheduled commercial banks
excluding foreign banks ; Direct / Indirect Agricultura lending
Small scale industries ; DRI advances ; weaker sections ; Targets for foreign 178 – 181
banks ; deposit by foreign banks with SIDBI towards shortfall in priority sector
lending ; contribution by banks to rural infrastructure development fund
(RIDF)
Section – IV – Common guidelines for priority sector advances 183 – 184
Processing of applications ; completion of application forms ; issue of
acknowledgement of loan applications ; disposal of applications ; rejection of
proposals ; register of rejected applications ; mode of disbursement of loan ;
repayment schedule ; rates of interest
Penal interest ; inspection charges ; insurance against fire and other risks ; 185
banks may waive insurance of assets financed by bank credit in the following
cases;
Other charges ; Photographs borrowers; discretionary powers; machinery to 186 -189
look into complaints ; amendments ; annexure I – general guidelines on
priority sector lending ; general guidelines on priority sector lending
For its long term operations NABARD raises funds by :-
a)
Floating Bonds in open
market
b)
Drawing from the Central
c) Govt.
d) Drawing from National Rural

credit Funds
Borrowing from RRBs

Bonds
Secured Premium Notes are .
Most of the Indian PS Banks practice retail banking.
True
False
1. Pure NBFI 1. REC
2. Specialised NBFI 2. FFC
3. Film Finance 3. HDFC
4. Rural Electrification 4. Chit Funds
5. UTI
6. NICo Ltd.
Marks : 2
26.
facilities
are for economies in transition.
Legally speaking Pass Through Certificates
are and are tradeable

freely.
EXIM Bank can

raise resources by:-
a)
Issuing bonds
b) Borrowing from
RBI
c)
d) Borrowing from
International
Financial
Institutions
Borrowing from
State Govt
1. Gen.Insurance 1. LIC of
India Ltd
2. Life Insurance 2. HDFC
3. Mutual fund 3. PPF
4. Small 4. Chit Funds

Savings
5. UTI
6. NICo of
India Ltd.
If the Bank allows a finance of Rs 95 against a Bill of Rs 100 the difference of Rs. 5
is known as the :-
a)
Discount
b) Margin
c) Interest
d) Commission
41. DFHI was set up with the following objective :-
a)
Executor Trustee Services
b) To even out imbalances
c) To provide liquidity
d) To promote secondary market

True/False
Your Answer False

banks?

Your Answer IFCI
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True


True/False
sector.
Your Answer False
True/False
Your Answer False
Select The Blank

the project.
True/False
Correct Answer True
Your Answer True
Select The Blank

Correct Answer 0
Your Answer 0
Select The Blank


:-

Your Answer Power


Select The Blank

Your Answer ICICI
True/False
Correct Answer True
Your Answer True
Select The Blank

Your Answer Paid-up
Select The Blank

True/False
Insurance.
Correct Answer True
Your Answer True
Select The Blank

Strategy Paper.
Correct Answer PRGF
Your Answer PRGF


Your Answer Size




True/False
Correct Answer True
Your Answer True
Select The Blank

of its ________.
True/False
Correct Answer True
Your Answer False
True/False
Your Answer True


Match The Following


world
Cooperation

Correct Answer IDBI
Your Answer IDBI

:-
Correct Answer 1965
Your Answer 1965
Select The Blank

Select The Blank

maladjustments.
Correct Answer IMF
Your Answer UNO



deposits

Correct Answer 1978
Your Answer 1975
Select The Blank

in India.

Match The Following


Water
Warehousing
development

countries to :-

Financial Institutions & Banking_6

Correct Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral

planning
Your Answer Benchmark Surveys , Pre-feasibility studies , Regional /Sectoral
planning

Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Your Answer Handling foreign currency , Handling Doc. credits , Granting lines
of Credit
Select The Blank

in India.
Your Answer FEDAI
True/False
Your Answer True
True/False
Your Answer False

Your Answer Power
True/False
-1-

Development.
Correct Answer True
Your Answer False
Match The Following


employees of a Firm
Select The Blank

True/False
Correct Answer True
Your Answer True
Select The Blank


Select The Blank
-2-

Correct Answer 0
Your Answer 0.05

Correct Answer 1965
Your Answer 1975




Correct Answer IFCI
Your Answer IFCI
True/False
based activities.
Correct Answer True
Your Answer True
-3-

True/False
Correct Answer True
Your Answer True
Select The Blank




basis in branch?
True/False
Correct Answer True
-4-
Your Answer True
True/False
Government.
Correct Answer True
Your Answer False

Correct Answer RBI
Your Answer RBI

Question Account where lump sum investment is made for specific period
is :-


Select The Blank

Your Answer ICICI

-5-

Select The Blank

Question Syndication of Loans Globally does not involve any funds as it is
________ activity.

Select The Blank

Correct Answer SDR
Your Answer EFF


Select The Blank

of its ________.
-6-

Match The Following


Markets

Instruments
Select The Blank

Question 55% of HUDCO loans are earmarked for________& low income
groups.
True/False
Authorised Dealers.
Your Answer False

countries to :-
Select The Blank

period.
-7-



Companies
-8-
38. Initial Quantum of resources of IMF were contributed by members according to :-
Quotas fixed for members

SDR fixed for members
Population
Wealth of the nation

Question Zero Coupon Bonds are issued at a :-
Select The Blank


in 1964?
Correct Answer IDBI
Your Answer IDBI
Select The Blank


Correct Answer By borrowing from IBRD , By lending at 0% interest. , For

True/False
-1 -
Your Answer False
True/False
Correct Answer True
Your Answer False


public due to :-
Your Answer Wide network , Tax concessions
True/False
bids.
Correct Answer True
Your Answer True


Question NABARD was established on the recommendations of :-
Correct Answer CRAFICARD
Your Answer CRAFICARD
Select The Blank
-2 -


Select The Blank

Question AFC's membership consists of commercial, cooperative banks
and DFIs including ________.

Question SIDCs & SIICs give loans ,guarantees & :-

Your Answer SSN Nigam Ltd , MSR Dev.Corporation , MKV Dev. Corporation.
Select The Blank

Question SCICI provides domestic & foreign loans for capital equipment
and________ services.
Correct Answer Technical
Your Answer Technical
-3 -

Your Answer Usance promissory note
True/False
Authorised Dealers.
Your Answer False
Select The Blank

Correct Answer GIC
Your Answer GIC


Correct Answer To augment export finance in India , To channelise World Bank's

funds to industries in India , To help in building up a Capital
Market in India
Your Answer To augment export finance in India , To channelise World Bank's
funds to industries in India , To help in building up a Capital
Market in India
Select The Blank

Your Answer ICICI
-4 -

Correct Answer Granting lines of Credit , Handling foreign currency , Handling

Doc. credits
of Credit

True/False
Question The currency notes issued by RBI are legal tender everywhere in
India without any limit.
Correct Answer True
Your Answer True
Select The Blank

True/False
Your Answer False

bonds
-5 -
bonds


Question DICGC also provides :-
Correct Answer Security to deposits
Your Answer Guarantee to banks
Match The Following

Small Savings Chit Funds Chit Funds
Gen.Insurance NICo of India Ltd. NICo of India Ltd.
Life Insurance LIC of India Ltd LIC of India Ltd
Mutual fund UTI UTI
Select The Blank



Cheques
Cheques

Question The major area of AFC's specialisation included Crop Production
as well as:-
-6 -
True/False
Correct Answer True
Your Answer False
Select The Blank

of its ________.
True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True
Select The Blank

Question In a Bank, the investment decisions are taken at ________ level.
Match The Following

-7 -
NCDC Development of Development of

Cooperatives Cooperatives
True/False
Correct Answer True
Your Answer True

Question NonBanking Financial Companies are :-
Correct Answer Financial institutions
Your Answer Financial institutions

Question A record of the holdings of GOI dated securities of each holder is
contained in :-
-8 -
True/False
Development.
Correct Answer True
Your Answer True
Select The Blank

Your Answer Confirmed
Select The Blank

Question The ________ of NABARD covers release of refinance without
prior sanction for refinance limit.
Correct Answer ARS
Your Answer CFSF
True/ False
Correct Answer True
Your Answer True
True/False
based activities.
Correct Answer True
Your Answer True
True/False
sector.
Your Answer True
Match The Following

Development financial IFCI Banking System
institutions
Organised sector Banking System IFCI
Select The Blank

Your Answer Paid-up
Select The Blank

Question Development financial institutions have been established to cater
to ________ of the industrial sector.
Your Answer Short term financial needs
Select The Blank

Question General insurance policies are genarally issued for ________
year.
Correct Answer One
Your Answer Ten
True/False
Correct Answer True
Your Answer True

Your Answer Banking Regulation Act



Your Answer Money markets
True/False
Your Answer True
True/False
Correct Answer True
Your Answer True

Correct Answer IDBI
Your Answer IDBI

Question Zero Coupon Bonds are issued at a :-

Your Answer Financial support to SSIDC

Your Answer Treasury bills , Ways and means advances , TOD
Select The Blank

Question SCICI provides domestic & foreign loans for capital equipment
and________ services.
Correct Answer Technical
Your Answer After sales

Your Answer Financial companies
True/False
Correct Answer True
Your Answer True
True/False
Question IDA does not lend to countries that are not in a position to
borrow from IBRD.
Your Answer True



Correct Answer Pre-feasibility studies , Regional /Sectoral planning , Benchmark

Surveys
Surveys

Correct Answer International remittances , Travellers' Cheques , Credit Card

Business
Cheques

contained in :-
Your Answer NSE
Select The Blank

Correct Answer GIC
Your Answer OF&GICO Ltd.

Correct Answer 1978
Your Answer 1975

Your Answer Government , Banking/Insurance , Trade/Industry

Question Cetificate of deposit are issued by

Your Answer Banks

Select The Blank

Your Answer Long term returns

Question DFHI was set up jointly by :-
Correct Answer RBI , Banks , All India Fis
Your Answer RBI , All India Fis , SEBI
Match The Following

Small Savings Chit Funds HDFC
Gen.Insurance NICo of India Ltd. UTI
Life Insurance LIC of India Ltd LIC of India Ltd
Mutual fund UTI Chit Funds

Your Answer Short term deposit receipts
True/False

Your Answer True


contained in :-
Select The Blank

Your Answer HUDCO
Select The Blank

Your Answer Fixed assets
Select The Blank

Correct Answer 0
Your Answer 0.05

Your Answer Taxes
Select The Blank

Your Answer Premium

Correct Answer RBI
Your Answer RBI


Your Answer Legal Tender
True/False
Question Cancellation of a Guarantee is known as "revocation".
Correct Answer True
Your Answer True

Question IFCI raises its funds by way of :-
Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from IDBI
Your Answer Issuing bonds , Issuing shares


Question Cetificate of deposit are issued by
Match The Following

Film Finance FFC Chit Funds
Rural Electrification REC REC
Pure NBFI UTI UTI

Specialised NBFI HDFC HDFC

Question SFCs suffer from a very high ratio of:-

Your Answer Konkan Railway Corporation , MSR Dev.Corporation

Question EXIM Bank can raise resources by:-
Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from

International Financial Institutions
Your Answer Issuing bonds , Borrowing from RBI
Select The Blank

True/False
Question CPs have to be compulsorily rated.
Correct Answer True
Your Answer True

as well as:-
Your Answer Crop Planning , Plant Protection

Question EXIM Bank provides financial assistance to:-
Correct Answer Indian Companies , Commercial Banks , Foreign Governments
Your Answer Investment trusts , Indian Companies

Your Answer Credit report , Banker's report , Client's Report

Correct Answer RBI
Your Answer RBI
True/False
Correct Answer True
Your Answer True

Question Credit Risk under NEF Scheme of SIDBI is borne by :-
Correct Answer Central Govt & SIDBI
Your Answer SIDBI
Select The Blank

of its ________.
Your Answer Deposits

Your Answer Operation
Select The Blank

Your Answer Financial claims and services

basis in branch?

Correct Answer Pre-feasibility studies , Regional /Sectoral planning , Benchmark

Surveys
Surveys
True/False
Question EXIM Bank provides Lines of Credit to other nations for Indian
exports.
Correct Answer True
Your Answer True
True/False
bids.
Correct Answer True
Your Answer False

banks?
True/False
Correct Answer True

Your Answer True
Select The Blank

Question Legally speaking Pass Through Certificates are ________ and
are tradeable freely.
Correct Answer Promissory notes
Your Answer Bills of Exchange
Select The Blank

Strategy Paper.
Correct Answer PRGF
Your Answer RPFG
Select The Blank

Question AFC's membership consists of commercial, cooperative banks
and DFIs including ________.
Match The Following

Largest borrower in the IBRD MIGA

world
International Monetary IMF PRGF
Cooperation
Prevention of crises CCL IBRD
Political insurance MIGA CFF


Question The word ' Tranche ' is a French word which means :-
Correct Answer A Slice

Your Answer A Slice

Select The Blank

Question The department handing ________ in the banks is known as the
Treasury.
Correct Answer Investments
Your Answer Cash & currency
True/False
Correct Answer True
Your Answer True
Select The Blank

groups.
Your Answer Salaried persons

to :-
Your Answer Existing Large Industrial Units , New Units in tiny Sector , New
Units in Small Sector

Your Answer PSUs , Private Sector Cos. , FIIs
Select The Blank

the project.
Your Answer Viability

Correct Answer RBI
Your Answer Central Govt.
True/False
Your Answer False
Select The Blank


Question NonBanking Financial Companies are :-
Correct Answer Financial institutions
Your Answer Manufacturing units

Your Answer Money lenders , Indigenous bankers , Chit funds
True/False
Question Most of the Indian PS Banks practice retail banking.
Correct Answer True
Your Answer True

Select The Blank
Question Secured Premium Notes are ________.
Correct Answer Debentures
Your Answer Bonds
True/False
Correct Answer True
Your Answer False

Select The Blank


Select The Blank

including ________.




Correct Answer RBI

Your Answer RBI
Select The Blank

housing sector.



to ten years
ten years

True/False
Correct Answer True
Your Answer True

Correct Answer RBI

Your Answer RBI
True/False

Your Answer True


Your Answer RBI Act

Question The major area of AFC's specialisation included Crop Production as well
as:-



Select The Blank






Your Answer Banks
True/False
Correct Answer True

Your Answer True






True/False
Fertilisers.

Your Answer False


True/False
&nbs! p;
Correct Answer True

Your Answer True
Select The Blank





Select The Blank


Match The Following

Select The Blank


Your Answer ICICI


True/False
Correct Answer True

Your Answer True


Question A current account where the customer can withdraw more than the balance
is :-




Correct Answer SIDF

Your Answer SIDF
True/False

Your Answer False
True/False
Correct Answer True

Your Answer True
Match The Following

True/False
Correct Answer True

Your Answer True
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


Select The Blank

Question The term ________ refers to the act of a bank extending finance to the
seller against a letter of credit.



are :-
Select The Blank


!


Select The Blank


Select The Blank

including ________.




Correct Answer RBI

Your Answer RBI
Select The Blank

housing sector.



to ten years
ten years


True/False
Correct Answer True

Your Answer True

Correct Answer RBI

Your Answer RBI
True/False

Your Answer True


Your Answer RBI Act

Question The major area of AFC's specialisation included Crop Production as well
as:-



Select The Blank





Your Answer Banks
True/False
Correct Answer True

Your Answer True






True/False
Fertilisers.

Your Answer False


True/False
Correct Answer True

Your Answer True
Select The Blank





Select The Blank


Match The Following

Select The Blank


Your Answer ICICI


True/False
Correct Answer True

Your Answer True


is :-




Correct Answer SIDF

Your Answer SIDF
True/False

Your Answer False
True/False
Correct Answer True

Your Answer True
True/False
Correct Answer True

Your Answer True

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


Select The Blank

Question The term ________ refers to the act of a bank extending finance to the
seller against a letter of credit.



are :-
Select The Blank






Select The Blank


Correct Answer SIDF

Your Answer SIDF
Match The Following

Corporates RIL, HPCL RIL, HPCL

NGOs CSP, CRY, PLAN CSP, CRY, PLAN
DFI IDBI, IFCI, ICICI IDBI, IFCI, ICICI
PSUs NTPC, NHPC, Coal India NTPC, NHPC, Coal India


Your Answer RBI , Banks , All India Fis , SEBI
Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme for modernisation is
also undertaken by IDBI.

Your Answer ICICI



Question Investment on a monthly basis and repayment on due date
is made in :-
Correct Answer Recurring deposit

Your Answer Term deposit account

Correct Answer Credit Card Business , International remittances ,

Travellers' Cheques
Your Answer Credit Card Business , International remittances ,
Travellers' Cheques

Your Answer Taxes

is :-

Select The Blank

Question AFC's membership consists of commercial, cooperative
banks and DFIs including ________.


Question Functions of R.O. do not cover :-
Correct Answer SLR/CRR maintenance , Liaison with RBI/IBA ,

Issuing Lending Policy
Your Answer Liaison with RBI/IBA , Issuing Lending Policy
Select The Blank

Question The ________ of NABARD covers release of refinance
without prior sanction for refinance limit.
Correct Answer ARS

Your Answer CFSF
Select The Blank

Question The ________ regulation makes the banks the largest
investor in the GOI securities.
Correct Answer SLR

Your Answer SLR

Question Post Offices are popular for mobilizing small savings of
the public due to :-

Your Answer Wide network , Tax concessions , Saftey of funds
True/False
Your Answer True

Question SIDBI commenced its operations from :-
Correct Answer April 2,1990

Your Answer April 2,1990

Correct Answer RBI

Your Answer RBI



Correct Answer By borrowing from IBRD , By lending at 0%

interest. , For periods up to ten years
Your Answer By borrowing from IBRD , By lending at 0% interest. ,
For periods up to ten years


Match The Following

Hill ,Tribal Area development Area Development Area Development
Aquaculture , Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation

Seasonal Agricultural Operations Irrigation & Drainage
Market Yards, Storage &

Warehousing Agricultural Marketing Agricultural Marketing
True/False
Question Small Savings are source of Capital Receipts for the Government.
Correct Answer True
Your Answer False

Question The financial Assistance provided by the IMF enables member countries to
:-

Your Answer Rebuild resources , Stabilise currencies , Undertake specific projects


Your Answer Banks


Your Answer ICICI
Select The Blank


Your Answer Paid-up
True/False

Your Answer False
Select The Blank

Question In a Bank, the investment decisions are taken at ________ level.


Question RBI is also referred to as :-
Correct Answer Apex Bank

Your Answer Apex Bank

Correct Answer Issuing bonds , Borrowing from RBI , Borrowing from International
Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International Financial Institutions


Your Answer Power
True/False
Correct Answer True

Your Answer True


Your Answer Refinance , Financial support to SSIDC , Cash Credit facilities
True/False
Correct Answer True

Your Answer True

Question Other than Tourism, International funds remittances comprise of :-

Your Answer Payments of Royalty , Travel related payments
True/False
Correct Answer True

Your Answer False
Select The Blank


True/False
Correct Answer True

Your Answer True
True/False

Your Answer False
Select The Blank


Your Answer Portfolio management
True/False
Question In case of T-Bills potential investors have to put in
competitive bids.
Correct Answer True

Your Answer True
True/False
Question Non bank financial institutions undertake fund and non fund based activities.
Correct Answer True

Your Answer True


Your Answer Inspection/audit , Control on branches , Grant loans/advances

Correct Answer Handling foreign currency , Handling Doc. credits , Granting lines of
Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency , Handling Doc. credits
, Granting lines of Credit
Select The Blank


Your Answer Debentures
Select The Blank


Your Answer Funded


planning
planning

of Credit
of Credit
Select The Blank

in India.
Your Answer FEDAI
True/False
Your Answer True
True/False
Your Answer False

Your Answer Power
True/False
Development.
Correct Answer True
Your Answer False
Match The Following


employees of a Firm
Select The Blank

True/False
Correct Answer True
Your Answer True
Select The Blank


Select The Blank

Correct Answer 0
Your Answer 0.05

Correct Answer 1965
Your Answer 1975


Question The underdeveloped markets are characterised by : -


Correct Answer IFCI
Your Answer IFCI
True/False
based activities.
Correct Answer True
Your Answer True

True/False
Correct Answer True
Your Answer True
Select The Blank




basis in branch?
True/False
Correct Answer True

Your Answer True
True/False
Government.
Correct Answer True
Your Answer False

Correct Answer RBI
Your Answer RBI

is :-

Multiple Choice Multiple Answ er

Select The Blank

Your Answer ICICI

Select The Blank

________ activity.

Select The Blank

Correct Answer SDR
Your Answer EFF


Select The Blank

of its ________.

Match The Following


Markets

Instruments
Select The Blank

groups.
True/False
Authorised Dealers.
Your Answer False

countries to :-
Select The Blank

period.



Companies
Select The Blank

Select The Blank

including ________.

Question Financi al institutions deal in :-

Correct Answer RBI
Your Answer RBI
Select The Blank

Question One of the objectives of NHB is to augment the ________ resources
for the housing sector.


Question A company issues CP to save on : -
True/False
Question PFC has been persuading State Governments restructuring of their
power sector to make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True
Your Answer RBI Act

Question The major area of AFC's specialisation included Crop Production as
well a! s:-

Question A member's IMF Quota determines its : -
Select The Blank



Question Cetificate of deposit are issued by : -
Your Answer Banks
True/False
Correct Answer True
Your Answer True

Question The unorganised financial system includes : -


True/False
Your Answer False
True/False
Development.
Your Answer True
Select The Blank


Question Development Financial institutions include : -

Question Money Markets Instruments have a maturity of less than : -
Select The Blank

Match The Following

Select The Blank

Your Answer ICICI

True/False
Correct Answer True
Your Answer True


Question A current account where the customer can withdraw more than the
balance is :-


Your Answer SIDF
True/False
Your Answer False
True/False
Question Banks issue Guarant ees on behalf of their clients.
Correct Answer True
Your Answer True
Match The Following

True/False
Insurance.
Correct Answer True
Your Answer True


Select The Blank

Question The term ________ refers to the act of a bank extending finance to
the seller against a letter of credit.


Question Bonds issued by institutions through SPVs to execute infrastructure
projects are :-
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Niga m Ltd
Select The Blank

!

Yahoo! for Good

YAHOO! GROUPS LINKS


Select The Blank

Select The Blank

________.


Correct Answer RBI
Your Answer RBI
Select The Blank

sector.

years

True/False
make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True
Your Answer RBI Act


Select The Blank



Your Answer Banks
True/False
Correct Answer True
Your Answer True



True/False
Fertilisers.
Your Answer False
True/False
Correct Answer True
Your Answer True
Select The Blank



Select The Blank

Match The Following

Select The Blank

Your Answer ICICI

True/False
Correct Answer True
Your Answer True




Correct Answer SIDF
Your Answer SIDF
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Match The Following

True/False
Correct Answer True
Your Answer True

open market
open market
Select The Blank

a letter of credit.


Select The Blank



Select The Blank

Select The Blank

________.


Correct Answer RBI
Your Answer RBI
Select The Blank

sector.

years

True/False
make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True
Your Answer RBI Act


Select The Blank



Your Answer Banks
True/False
Correct Answer True
Your Answer True



True/False
Fertilisers.
Your Answer False
True/False
Correct Answer True
Your Answer True
Select The Blank



Select The Blank

Match The Following

Select The Blank

Your Answer ICICI

True/False
Correct Answer True
Your Answer True




Correct Answer SIDF
Your Answer SIDF
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Match The Following

True/False
Correct Answer True
Your Answer True

open market
open market
Select The Blank

a letter of credit.


Select The Blank



Select The Blank

Select The Blank

________.


Correct Answer RBI
Your Answer RBI
Select The Blank

sector.

years

True/False
make them viable.
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True
Your Answer RBI Act


Select The Blank



Your Answer Banks
True/False
Correct Answer True
Your Answer True



True/False
Fertilisers.
Your Answer False
True/False
Correct Answer True
Your Answer True
Select The Blank



Select The Blank

Match The Following

Select The Blank

Your Answer ICICI

True/False
Correct Answer True
Your Answer True




Correct Answer SIDF
Your Answer SIDF
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Match The Following

True/False
Correct Answer True
Your Answer True

open market
open market
Select The Blank

a letter of credit.


Select The Blank



Select The Blank

Correct Answer SIDF
Your Answer SIDF
Match The Following

NGOs CASP, CRY, PLAN CASP, CRY, PLAN

Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
Your Answer ICICI


is made in :-

Travellers' Cheques
Your Answer Credit Card Business , International rem ittances ,
Travellers' Cheques

Question A company issues CP to save on : -
Your Answer Taxes

Question A current account where the customer can withdraw more
than the balance is :-
Select The Blank

Correc t Answer EXIM bank

Question Functions of R.O. do not cover : -
Select The Blank

Correct Answer ARS
Your Answer CFSF
Select The Blank

Correct Answer SLR
Your Answer SLR

True/False
Your Answer True

Question SIDBI commenced its operations from : -

Correct Answer RBI
Your Answer RBI



Match The Following

Aquaculture ,Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation Seasonal Agricultural Operations

Irrigation & Drainage
Market Yards, Storage & Warehousing Agricultural Marketing

Agricultural Marketing
True/False
Government.
Correct Answer True
Your Answer False

Correct Answer Rebuild resources , Stabilise currencies , Pay for
imports
Your Answer Rebuild resources , Stabilise currencies , Undertake
specific projects

Question Cetificate of deposit are issued by : -
Your Answer Banks

Your Answer ICICI
Select The Blank

Your Answer Paid -up
True/False
Your Answer False
Select The Blank
Question In a Bank, the investment decisions are taken at
________ level.


Correct Answer Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International

Question PFC is committed to the i ntegrated development of :-
Your Answer Power
True/False
Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer True
Your Answer True

Correct Answer Refinance , Rediscounting of Bills , Financial
support to SSIDC
Your Answer Refinance , Financial support to SSIDC , Cash Credit
facilities
True/False
Question Under MIGA the World bank offers various forms of
Political Insurance.
Correct Answer True
Your Answer True

Question Other than Tourism, International funds remittances
comprise of :-
Correct Answer Donations/Charity , Payments of Salaries ,
Payments of Royalty
True/False
Correct Answer True
Your Answer False
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Your Answer False
Select The Blank

True/False
competitive bids.
Correct Answer True
Your Answer True
True/False
Question Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer True
Your Answer True

Question Functions of R.O. of a bank include : -
Correct Answer Inspection/audit , Control on branches , Grant
loans/advances
Your Answer Inspection/audit , Control on branches , Grant
loans/advances

Correct Answer Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit
Select The Blank

Select The Blank

Your Answer Funded


planning
planning

of Credit
of Credit
Select The Blank

in India.
Your Answer FEDAI
True/False
Your Answer True
True/False
Your Answer False

Your Answer Power
True/False
Development.
Correct Answer True
Your Answer False
Match The Following


employees of a Firm
Select The Blank

True/False
Correct Answer True
Your Answer True
Select The Blank


Select The Blank

Correct Answer 0
Your Answer 0.05

Correct Answer 1965
Your Answer 1975




Correct Answer IFCI
Your Answer IFCI
True/False
based activities.
Correct Answer True
Your Answer True

True/False
Correct Answer True
Your Answer True
Select The Blank




basis in branch?
True/False
Correct Answer True

Your Answer True
True/False
Government.
Correct Answer True
Your Answer False

Correct Answer RBI
Your Answer RBI

is :-

Multiple Choice Multiple Answ er

Select The Blank

Your Answer ICICI

Select The Blank

________ activity.

Select The Blank

Correct Answer SDR
Your Answer EFF


Select The Blank

of its ________.

Match The Following


Markets

Instruments
Select The Blank

groups.
True/False
Authorised Dealers.
Your Answer False

countries to :-
Select The Blank

period.



Companies
Select The Blank

Select The Blank

Question AFC's membership consists of commercial, cooperative banks and
DFIs including ________.


Correct Answer RBI
Your Answer RBI
Select The Blank

Question One of the objectives of NHB is to augment the ________
resources for the housing sector.


Page 1
True/False
Correct Answer True
Your Answer True

Correct Answer RBI
Your Answer RBI
True/False
Your Answer True

Your Answer RBI Act

as well a! s:-

Select The Blank


Page 2
Your Answer Banks
True/False
Correct Answer True
Your Answer True



True/False
Your Answer False

Correct Answer Money lenders , Indigenous bankers , Lending pawn
brokers
True/False
Development.
Your Answer True
Page 3
Select The Blank

groups.


Select The Blank

Match The Following

Select The Blank

Your Answer ICICI

Page 4
True/False
Correct Answer True
Your Answer True


Question A current account where the customer can withdraw more than
the balance is :-


Your Answer SIDF
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Match The Following


Page 5
True/False
Insurance.
Correct Answer True
Your Answer True


Select The Blank



Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN
Page 6
Nigam Ltd
Ltd
Select The Blank

!

Yahoo! for Good

YAHOO! GROUPS LINKS

Page 7
Financial Institution and Banking
Topic PageNo
organised sector 2
financial services 2
Indian financial system 3
commercial banks 4
development financial institutions 5
other public sector financial institutions 5
post office savings 5
mutual funds 5
non banking finanical institutions 6
Reserve bank of India 9
functions of RBI 9
banker to the government 10
bankers bank 10
supervising authority 10
exchange control authority 10
promoter of financial system 11
fiscal and monetary policy 12
open market operations 12
developmental financial institutions 17
industrial finance corporation of India 17
Industrial development bank of india - idbi 18
industrial credit and investment corporation of india Ltd - icici 19
irbi 20
sfcs 20
sidc and siics 20
state small industries development corporation (SSIDC) 21
power finance corporation (PFC) 21
financial services offered by the corporation 21
term loans 21
lease financing 22
direct discounting of bills 22
guarantee services 22
loan syndication 22
short term loan 22
institutional development services 22
utility development plans 23
financial assistance for power sector studies 23
reform and restructuring related studies 23
reform and restructuring of SEBs 23
OFAP 23
export import bank of india 24
national bank of agriculture and rural development 24
genesis of NABARD 24
ARC 24
GOI 24
ACD 24
CRAFICARD 24
types of refinance facilities 26
interest rates 26
production credits 28
financing weavers 28
OSAO 29
refinance for marketing of crops 29
other refinance facilities 30
long term loans to state governments 30
investment credit ( medium and long term) refinance 31
shipping credit and investment company of India (SCICI) 33
principal activities 33
agricultural finance consultancy ltd (AFC) 34
area of specialisation 36
surveys and studies 38
National co-operative development corporation (NCDC) 38
finance and financing 39
procedure of santion / disbursal of assistance 40
promotional and development role 40
marketing 40
agricultural inputs 40
agro-processing industries 41
storage and cold storage 41
program for weaker sections 41
consumer business 41
area based integrated co-operative development project 42
national housing bank (NHB) 42
housing and urban development corporation (HUDCO) 44
housing development finance corporation (HDFC) 44
land development banks 45
banking sector 49
retail banking 49
cash credit 50
safe custody services for safe keeping of important documents 50
acceptance of deposits from non resident indians 51
difference between retail banking and wholesale banking 51
global banking 51
scheduled bank in india 52
commercial bank and cooperative bank 52
public sector banks 52
private sector banks 52
bank accounts 53
deposit account 53
lump sum investment 54
periodic investment 54
cash credit 54
loan syndication 54
repayment period 54
bill 55
discount 55
remittance 55
letter of credit 55
bank guarantee 56
negotiation 56
cash reserve ratio 56
statutory reserve ratio 57
note pertaining to reserve ratio 57
clearing operation 57
daily product basis 57
monthly product basis 58
repayment holiday 58
credit instruments 59
negotiable instruments 59
acceptance 59
credit report 59
syndication 59
custodial services 60
security 60
foreign exchange 60
securitisation 60
international banking 60
international trade 61
tourism 61
remittance of funds from one place to another place besides tourism 61
syndication of loans global for corporate houses 61
foreign exchange management 62
profile of a bank 62
branch banking 62
different layers of banking 62
duties of an international banking department 63
exchange operations 63
administrative functions in a bank 63
administrative units 64
banking business 65
Deposit insurance and credit guarantee corporation (DICGC) 66
export credit guarantee corporation (ECGC) 67
indian money market 73
instrument 73
comercial paper 74
certificates of deposit 75
treasury bills 75
short term debentures 75
bill of exchange 75
long term debt instruments 76
government of India dated securities (GOISEC) 76
inflation linked bonds 77
zero coupon bonds 77
state government securities (state loans) 78
public sector undertaking bonds (PSU Bonds) 78
bonds of public financial institutions (PFI) 78
corporate debentures 79
Pass through certificates (PTC) 79
issuers 79
government of India and other sovereign bodies 80
banks and development financial institutions 80
public sector undertaking (PSU ) 81
private sector companies 81
government owned or quasi governement non corporate entities 82
investors 82
banks 83
provident funds 84
mutual funds 86
trusts 86
corporate treasuries 87
foreign institutional investors 87
securities trading corporation of india (STCI) 88
discount and finance house of india 88
non banking financial intermediaries 93
LIC 93
general nature of insurance companies 93
instroduction of Life Insurance corporations 93
types and structure of insurance plans 94
general insurance corporation 96
unit trust of india 98
provident / pension funds 99
post offices 99
Non bank financial companies (NBFC) 99
investment companies 100
loan companies 102
chit funds 102
NIDHIS 103
hire purchase finance companies 104
equipment leasing finance companies 104
international monetary fund (IMF) 109
quotas 109
concessional and non concessional lending 113
poverty reduction and growth facility (PRGF) 113
stand by arrangments (SBA) 114
extended fund facility (EFF) 114
supplement reserve facility (SRF) 114
contingent credit lines (CCL) 114
compensatory financing facility (CFF) 114
emergency assistance 114
special drawing rights 114
the international bank for reconstruction and development 115
world bank 115
international finance corporation 115
international development assiciation (IDA) 116
the bank for international settlements 116
regional development agencies 116
RBI 119
non performing assets 120
out of order status 121
overdue 121
reversal of income 122
appropriation of recovery in NPA 122
NPA 122
subtful assets 124
loss assets 124
account with temporary deficiancies 124
upgradation of loan accounts classified as NPA 125
account regularised near about the balance sheet date 125
agricultural advances 126
government guaranteed advances 128
restructuring rescheduling of loans 128
upgradation of restructured accounts 130
corporate debt restructuring (CDR systems) 131
CDR 131
stand still clause 138
category 2 CDR system 139
projects under implementation 142
assest classification 142
provisioning 145
availability of security / net worth of borrower / guarantor 145
post shipment supplier credit 145
export project finance 146
advances under rehabiliation approved by BIFR/TLI 146
provisioning norms general 146
leased assets 148
advances 150
advances covered by CGTSI guarantee 151
reserve for exchange rate fluctuations account (RERFA) 152
country risk 153
securitisation company (SC) / reconstruction company (RC) 154
writing off of NPA 155
purchase of agricultural implements and machinery 156
development of irrigation potential through 156
lending to priority sector 158
priority sector advances 161
indirect finance to agriculture 163
small scale and ancillary industries 166
tiny enterprises 166
small scale service and business enterprises(SSSBE) 166
industrial estates 167
KVI sector 167
small road and water transport operators (SRWTO) 167
retail trade 168
small business 168
professional and self emplyed persons 168
state sponsored organisations for scheduled castes / scheduled tribes
169
education 170
housing 170
compsumption loans 170
loans to self help groups (SHG)/NGO/MICROEDIT 170
food and agro based processing sector 171
software industry 171
venture capital 171
investments in special bonds 173
HUDCO 174
NSIC 174
NHB 174
lines of credit 174
bills rediscounting 175
deposits in rural infrastructure development (RIDF) 175
leasing and hire purchase 175
targets for priority sector lending by scheduled commercial banks 177
scheduled commercial banks excluding foreign banks 177
direct / indirect agricultural lending 177
small scale industries 178
DRI advances 178
Weaker sections 178
Targets for foreign banks 178
rural infrastructure developments fund (RIDF ) 180
common guidelines for priority sector advances 183
application forms 183
mode of disbursement of loan 184
repayment schedule 184
rates of interest 184
penal interest 185
inspection charges 185
insurance against fire and other risks 185
other charges 186
photographs of borrowers 186
discretionary powers 186
machinery to look into complants 186
amendments 186
Select The Blank

Correct Answer SIDF
Your Answer SIDF
Match The Following

NGOs CASP, CRY, PLAN CASP, CRY, PLAN

Select The Blank

Question In addition to IFCI and ________ the Soft Loan Scheme
for modernisation is also undertaken by IDBI.
Your Answer ICICI


is made in :-
Page 1

Travellers' Cheques
Your Answer Credit Card Business , International remittances ,
Travellers' Cheques

Your Answer Taxes

Question A current account where the customer can withdraw more
than the balance is :-
Select The Blank


Question Functions of R.O. do not cover :-
Select The Blank

Correct Answer ARS
Your Answer CFSF
Select The Blank

Correct Answer SLR
Page 2
Your Answer SLR

True/False
Your Answer True

Question SIDBI commenced its operations from :-

Correct Answer RBI
Your Answer RBI



Match The Following

Page 3
Aquaculture ,Brackish Water Fisheries Fisheries
Ploughing, weeding, transplantation Seasonal Agricultural Operations

Irrigation & Drainage
Market Yards, Storage & Warehousing Agricultural Marketing

Agricultural Marketing
True/False
Government.
Correct Answer True
Your Answer False

Correct Answer Rebuild resources , Stabilise currencies , Pay for
imports
Your Answer Rebuild resources , Stabilise currencies , Undertake
specific projects

Your Answer Banks

Your Answer ICICI
Select The Blank

Your Answer Paid-up
True/False
Page 4
Your Answer False
Select The Blank

Question In a Bank, the investment decisions are taken at
________ level.


Correct Answer Issuing bonds , Borrowing from RBI , Borrowing
from International Financial Institutions
Your Answer Borrowing from RBI , Borrowing from International

Your Answer Power
True/False
Question PFC has been persuading State Governments restructuring
of their power sector to make them viable.
Correct Answer True
Your Answer True

Correct Answer Refinance , Rediscounting of Bills , Financial
support to SSIDC
Your Answer Refinance , Financial support to SSIDC , Cash Credit
facilities
True/False
Question Under MIGA the World bank offers various forms of
Page 5
Political Insurance.
Correct Answer True
Your Answer True

Question Other than Tourism, International funds remittances
comprise of :-
Correct Answer Donations/Charity , Payments of Salaries ,
Payments of Royalty
True/False
Correct Answer True
Your Answer False
Select The Blank

True/False
Correct Answer True
Your Answer True
True/False
Your Answer False
Select The Blank

True/False
competitive bids.
Correct Answer True
Your Answer True
Page 6
True/False
Question Non bank financial institutions undertake fund and non
fund based activities.
Correct Answer True
Your Answer True

Correct Answer Inspection/audit , Control on branches , Grant
loans/advances
Your Answer Inspection/audit , Control on branches , Grant
loans/advances

Correct Answer Handling foreign currency , Handling Doc.
credits , Granting lines of Credit
Your Answer Maintaining SLR/CRR , Handling foreign currency ,
Handling Doc. credits , Granting lines of Credit
Select The Blank

Select The Blank

Your Answer Funded
Page 7

Financial Institutions &amp; Banking Combined

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Your Answer SCICI Ltd

Multiple Choice Multiple Answer

Correct Answer Through loans , Through purchase of shares , For economic

Select The Blank

Correct Answer Six months or less

Your Answer Six months or less

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Correct Answer Gold bullion , Foreign securities , GOI securities

Your Answer Gold bullion , Foreign securities , GOI securities

Multiple Choice Single Answer

Your Answer Wholesale Banking

Your Answer True

Select The Blank

Your Answer Mutual Funds

Multiple Choice Multiple Answer

Correct Answer New Projects , Renovation , Modernisation

Your Answer New Projects , Renovation , Modernisation

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Correct Answer By lending at 0% interest. , For periods up to ten years , By

Multiple Choice Single Answer

Correct Answer Financial assets

Your Answer Financial assets

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Correct Answer RBI

Your Answer RBI

Correct Answer True

Your Answer True

Correct Answer True

Your Answer True

Multiple Choice Single Answer

Correct Answer Government regulation and control

Your Answer Government regulation and control

Multiple Choice Multiple Answer

Correct Answer Sponsor , Trust , Asset Management company

Your Answer Sponsor , Trust , Asset Management company

Multiple Choice Multiple Answer

Correct Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Your Answer Foreign Investors(FIIs) , Corporate Treasuries , Mutual Funds

Multiple Choice Single Answer

Your Answer SGL pass book

Multiple Choice Single Answer

Correct Answer Indigenous bankers

Your Answer Indigenous bankers

Multiple Choice Single Answer

Correct Answer State Governments

Your Answer State Governments

Your Answer True

Match The Following

Advances Loans/cash credits Loans/cash credits

Cash withdrawal facility ATM ATM

Remittances MT/DD/TT/EFT MT/DD/TT/EFT

Government business Collection of taxes Collection of taxes

Select The Blank

Correct Answer Premium collected

Your Answer Premium collected

Select The Blank