Wednesday, August 7, 2013

IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST-003




003
 


01.  The merger of two business units, that manufacture different products of like nature, is called as:
a)    Horizontal merger; b) vertical merger; c) lateral merger; d) diagonal merger; e) none of the above

02.  What do you mean by golden parachute?
a)    Attractive benefits that are given to top executives of targets company at the time of acquisition
b)    Attractive benefits that are given to clerical staff and subordinate staff of target company at the time of acquisition
c)     Attractive benefits that are given to top executives of acquirer company at the time of acquisition
d)    Attractive benefits that are given to clerical staff and subordinate staff of acquirer company at the time of ac      quisition
e)    None of the above

03.  Which of the following committee was set up in 1993 with a view to recommend insurance sector reforms?
a)    M.N. Goiporia committee; b) L.C. Gupta committee; c) R.N. Malhotra committee; d) Narasimhan committee; e) none of the above

04.  What do you mean by bankassurance?
a)    Selling insurance policies by the banks; b) insurance of the properties belonging to the banks; c) insurance of the properties by the banks; d) life insurance business undertaken by the banks; e) none of the above

05.  Which of the following is included in bancassurance?
a)    Insurance policies issued by the banks in their names
b)    Selling by a bank the insurance policies of its ancillary insurance company
c)     Selling by a bank the insurance policies of any insurance company
d)    All the above
e)    None of the above

06.  A bank wishes to undertake insurance business. Whose permission is necessary before commencement of insurance business?
a)    Life Insurance Corporation of India; b) General Insurance Corporation of India; c) Insurance regulatory and development authority; d) Reserve Bank of India; e) none of the above

07.  Selling of banking products by an insurance company is called as
a)    Assurfinance; b) bankassurance; c) innovative banking; d) all the above; e) none of the above

08.  What is a contract of insurance?
a)    It is a contract of guarantee; b) it is a contract of pledge; c) it is a contract of hypothecation; d) it is a contract of indemnity; e) none of the above

09.  Which of the following is not an essential condition for an urban cooperative bank to undertake bankassurance business?
a)    The bank should obtain prior permission from Insurance Regulatory and development authority
b)    The bank should have a net worth of not less than Rs. 50 crore
c)     The bankassurance business can be through their branches
d)    The bank will have to enter into an agreement with the insurance agency concerned
e)    None of the above

10.  Which among the following is called as non performing assets?
a)    Assets that can exchange income; b) Assets that eases to earn interest income; c) assets that have not been commented upon by the auditors; d) all the above; e) none of the above

11.  Which of the following does not pertain to non performance assets?
a)    Sub standard assets; b) doubtful assets; c) loss assets; d) all the above; e) standard assets

12.  Which among the following defines a non performing asset?
a)    In a loan account, the principal due has not been paid for more than ninety days
b)    In a loan account, the interest due has not been paid for more than ninety days
c)     Both (a) and (b) as mentioned above
d)    Assets that have not been commented upon by the bank auditors
e)    None of the above

13.  Which among the following committees had recommended Income Recognition and assets classification norms?
a)    Rangarajan committee; b) Goiporia committee; c) Narasimhan committee; d) Jankiraman committee; e) none of the above

14.  What do you mean by the term called as  “DRT”, when it comes to recovery of bank dues?
a)    Debt Recovery Tribunal; b) Debtor recovery tribunal; c) Debt reminder tribunal; d) Debt recovery tariff; e) Delhi Road transport

15.  Which of the following has introduced “Banking Ombudsman” in our country?
a)    Reserve Bank of India; b) Indian Bank’s association; c) National Institute of Bank Management; d) Indian Institute of Banking and Finance; e) none of the above

16.  Banking Ombudsman scheme has been introduced under the provisions of
a)    Reserve Bank of India act; b) Banking regulation act; c) Indian contract act; d) Consumer protection act; e) all the above

17.  What is the maximum period of time after which a customer of a bank can contact Banking Ombudsman, if he does not receive satisfactory response to his complaint?
a)    One month; b) two months; c) three months; d) none of the above

18.  A complaint can be submitted before Banking Ombudsman within ______of final decision by the bank?
a)    Two months; b) three months; c) six months; d) twelve months; e) none of the above

19.  In the term “CIBIL’, what do you mean by “B”?
a)    Bank; b) Bureau; c) Borrower; d) Bench; e) none of the above

20.  Which committee has recommended financing to self help group?
a)    Kalia committee; b) Narasimhan committee; c) Vasu committee; d) Goiporia committee; e) none of the above

21.  Which of the following has set up Rural Infrastructure Development Fund?
a)    National Bank for agriculture and rural development; b) Reserve Bank of India; c) State Bank of India; d) five major commercial banks; e) none of the above

22.  When a currency is converted into any other currency without any limit and for any purpose, it is called as
a)    Fully convertible; b) partially convertible; c) controlled convertible; d) not at all convertible; e) none of the above

23.  Which of the following committees has recommended for capital account convertibility in our country?
a)    A T Pannirselvam; b) S. Padmanabhan; c) S. Rangarajan committee; d) S. S. Tarapore committee; e) none of the above

24.  What is the necessity of foreign capital for a developing country like India?
a)    It encourages savings in the country; b) it is helpful to solve the problem of balance of payment; c) it is helpful for economic development of a developing country; d) all the above; e) none of the above

25.  Which of the following committees were set up by Government of India with a view to attract domestic and foreign investments in the country?
a)    Investment commission; b) Foreign Investment commission; c) Inland and Foreign investment commission; d) National savings commission; e) none of the above

26.  External commercial borrowings is a part of
a)    Balance of payment; b) balance of trade; c) current account; d) capital account; e) none of the above

27.  External commercial borrowings are governed under:
a)    Foreign Exchange Regulation act; b) Securitisation and Reconstruction of Financial assets and enforcement of security interest act; c) Debt Recovery Tribunal act; d) Foreign exchange management act

28.  Foreign trade policy is framed and implemented by:
a)    Chief controller of Import and Exports; b) Director General of Foreign Trade; c) Governor of Reserve Bank of India; d) Chairman of Finance commission; e) none of the above

29.  Under which ministry Director General of Foreign Trade function?
a)    Commerce ministry; b) Finance ministry; c) Foreign ministry; d) Home ministry; e) None of the above

30.  An offshore banking unit (OBU) is a unit

a)    That is located in a foreign country; b) that is located in special economic zone and deals in foreign currency; c) that is engaged in business of lending foreign currency and establishing joint ventures; d) all the above; e) none of the above


TEST NO: 003 - ANSWERS

1-A
2-A
3-C
4-A
5-D
6-C
7-A
8-D
9-D
10-B
11-E
12-C
13-C
14-A
15-A
16-B
17-B
18-D
19-B
20-A
21-A
22-A
23-D
24-D
25-A
26-D
27-D
28-B
29-A
30-A

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