Sunday, October 20, 2013

IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST-012





01.   The products offered by commercial banks in India can be classified into four major groups:
a)    Fund based services; b) non fund based services; c) value added services; d) internet banking services; e) all the above

02.   Which among the following does not belong to the internet banking services provided by commercial banks?
a)    Payment gateway services; b) real time gross settlement; c) supply chain management; d) corporate internet banking; e) supply chain partners

03.   Banks in the country provide preshipment finance in the form of _____________both in rupees as well as in foreign currencies to assist the exporters for manufacturing or packing the goods for export from the country
a)    Export packing credit; b) export bill negotiation; c) export LC confirmation; d) export bill purchase and discounting; e) rupee advance against export bills

04.   When it comes to the requirements of importers from the commercial banks in the country which among the following is not true?
a)    Import letters of credit; b) direct import bills; c) import collection bill services; d) arranging for buyer’s and supplier’s credit; e) supplier’s credit

05.   _________________is a type of negotiable (transferable) financial instrument that is traded on a local stock exchange of a country; however, represents a security, usually in the form of equity that is issued by a foreign publicly listed company
a)    Depository receipt; b) commercial paper; c) certificate of deposit; d) all the above; e) none of the above

06.   The value of the loan amount under retail lending normally range between
a)    Rs. 20000 to Rs. 1 crore; b) Rs 1 crore to Rs. 10 crore; c) Rs. 10 crore to Rs 100 crore; d) More than Rs. 100 crores; e) none of the above

07.   According to the information available it has been the experience of banks in the country in recent years under retail lending that the following loans had the least level of impairment (defaults)
a)    Home loan portfolio; b) consumer loan portfolio; c) vehicle loan portfolio; d) personal loan portfolio; e) none of the above

08.   Overseas depository bank – means which among the following:
a)    A bank authorized by the issuing company to issue global depository receipts against issue of foreign currency convertible bonds or ordinary shares of the issuing company
b)    A bank authorized by the government to issue global depository receipts against issue of foreign currency convertible bonds or ordinary shares of the issuing company
c)     A bank authorized by the issuing company to issue global depository receipts against receipt of a foreign currency
d)    A bank where deposits in foreign currencies can be made
e)    None of the above

09.   When it comes to the term called as “OTCEI”, what do you mean by “E”?
a)    Exchange; b) Environment; c) Environment; d) Entitlement; e) Enlistment

10.   ______________is the ownership interest in a company of holders of its common and preferred stocks
a)    Debenture; b) bond; c) equity; d) treasury bill; e)none of the above

11.   _____________________is a type of preference share where the dividend payable on the same accumulates, if not paid and after a specified date, these shares will be converted into equity capital of the company

a)    Preference shares; b) cumulative preference shares; c) cumulative convertible preference shares; d) participating preference shares; e) none of the above

12.   A bond giving the investor the option to convert the bond into equity at a fixed conversion price is referred to as ­­­­­­­­­_____________bond
a)    Coupon bond; b) zero coupon bond; c) convertible bond; d) conversion bond; e) none of the above

13.   Commercial papers are money market instruments issued normally for a tenure of ___________days
a)    Thirty days; b) ninety days; c) sixty days; d) 120 days; e) all the above

14.   ________________________are those institutional investors who are generally perceived to possess an expertise and the financial muscle to evaluate and invest in the capital markets
a)    Qualified Institutional buyers; b) share transfer agents; c) certified institutional investors; d) certified institutional buyers; e) none of the above

15.   Red herring prospectus is a prospectus
a)    Which is issued in red colour; b) which contains some clauses in red colour; c) which does not have details of either price or number of shares being offered or the amount of issue; d) all the above; e) none of the above

16.   The issue of new securities to existing shareholders at ratio to those already held is known as
a)    Preference shares; b) rights shares; c) bonus shares; d) cumulative preference shares; e) none of the above

17.   According to you, the main functions of SEBI are
a)    Protecting the interests of investors in securities; b) promoting the development of the securities market; c) regulating the securities market; d) all the above; e) none of the above

18.   When it comes to the following term namely- IPO, what do you mean by “P”?
a)    Provisions; b) Public; c) Private; d) Prudent; e) Pension

19.   The _____________are the specified intermediaries who are required to display due diligence and ensure that all the requirements of DIP are complied with, while submitting the draft offer document to Securities and Exchange Board of India
a)    Merchant bankers; b) equity players; c) share issuers; d) securities dealers; e) none of the above

20.   ______________This refers to the right of certain preference shareholders to participate in profits, after a specified fixed dividend contracted for is paid
a)    Preference shares; b) cumulative preference shares; c) participating preference shares; d) preference shares; e) none of the above
21.   _________________are bonds issued by a company bearing a fixed rate of interest usually payable half yearly, on specific dates and the principal amount repayable on a particular date on redemption
a)    Security receipts; b) Government securities; c) debentures; d) treasury bills; e) commercial paper

22.   ____________________refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange.
a)    Security market; b) secondary market; c) stock market; d) Bond market; e) debenture market

23.   What do you mean by “C” in the term called as FMCG?
a)    Customer; b) consumer; c) creditor; d) country; e) none of the above

24.   The short term bearer (upto ninetyone days) bearer discount security, issued by the government (through the Reserve Bank of India) as a means of meeting its cash requirements is called as
a)    Treasury bills; b) commercial paper; c) coupon bonds; d) zero coupon bonds; e) convertible bonds

25.   When it comes to the following term – FPO, what do you mean by “F”?
a)    Further; b) facility; c) favour; d) future; e) none of the above

26.   In the ______________, the securities like shares and debentures are offered to the public subscription for the purpose of raising capital or fund:
a)    Secondary market; b) primary market; c) share market; d) debenture market; e) none of the above

27.   What do you mean by BRLM?
a)    Book running lead managers; b) Bank running lead managers; c) Bank running liability managers; d) Bank running lead management; e) none of the above

28.   In the term called as AMFI, what do you mean by “F”?
a)    Mutual; b) money; c) Managing; d) Miscellaneous; e) none of the above

29.   As per SEBI guidelines, any entity/person engaged in the marketing and selling of mutual fund products is required to pass a certification test and obtain a registration number from whom the following?
a)    Securities and Exchange Board of India; b) Association of Mutual Funds in India; c) National Stock Exchange; d) OTCEI; e) Bombay stock exchange

30.   The aim of balanced funds is to provide

a)    Growth (capital appreciation) b) regular income; c) both growth and regular income; d) no such scheme; e) none of the above

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

IBPS BANK EXAMINATIONS – BANKING AWARENESS – PRACTICE TEST-011





01.  When it comes to the financial markets available in our country, which among the following is
True?
a)    Money market; b) debt market; c) forex market; d) currency market; e) capital market

02.  When it comes to money market instruments, which among the following is not true?
a)    Treasury bills; b) term money; c) certificate of deposits; d) corporate securities; e) commercial paper

03.  The bonds made available through the debt market in our country can be classified as:
a)    Financial bonds; b) public sector undertaking bonds; c) corporate securities; d) all the above; e none of the above

04.  Which among the following is not under the control of central banking authority?
a)    Monetary control; b) management of government debts; c) lender of last resort to banks; d) banker to government; e) equity market and debt market supervision and control

05.  The capital markets regulatory authority has supervision over:
a)    Stock exchanges; b) foreign institutional investors; c) equity and debt raisers; d) mutual funds; e) all the above

06.  ______________maintain a register of share and debenture holders and process share and debenture allocation, when issues are subscribed.
a)    Mutual funds; b) depositories; c) registrars; d) brokers; e) stock exchanges

07.  Find the correct match in respect of the following:
a)    Chairman and managing director – general manager – assistant general manager- deputy general manager
b)    General manager – assistant general manager – deputy general manager – chairman and managing director
c)     Chairman and managing director – executive director – general manager – deputy general manager
d)    Chairman and managing director – general manager – executive director – deputy general manager
e)    Chairman and managing director – executive director – general manager – assistant general manager

08.  Find the correct order in respect of the following:
a)    Head office – regional office – zonal office –branch
b)    Head office – zonal office – regional office – branch
c)     Regional office – zonal office – head office – branch
d)    Head office – regional office – branch – zonal office
e)    None of the above

09.  Cash reserve ratio is the __________deposit to be held by banks with Reserve Bank of India
a)    Voluntary; b) mandatory; c) optional; d) as decided by the chairman and managing director e) none of the above

10.  Urban cooperative banks are controlled by______________and _________________
a)    State government-RBI; b) NABARD – RBI; c) SEBI – RBI; D) Central government – NABARD; e) NABARD – state governments

11.  Leasing, hire purchase and bill discounting are the domain of_______________
a)    Non banking companies; b) mutual funds; c) commercial banks; d) development banks; e) none of the above

12.  Non banking finance companies are licensed and supervised by the__________________and it prescribes that no NBFC can operate without a valid license from the central banking authority
a)    State governments; b) finance ministry; c) central banking authority; d) RBI; e) both © and (d) as above

13.  The Reserve Bank of India was constituted under the Reserve Bank of India act, _______and started functioning with effect from 1st April_____________
a)    1934 – 1935; b) 1935-1934; c) 1944-1945; d) 1936-1937; e) none of the above

14.  The overall money supply in the economy is controlled by the central bank through:
a)    Money supply; b) volume of bank credit; c) cost of bank credit; d) all the above; e) none of the above

15.  ____________is the standard rate at which Reserve Bank of India is prepared to buy or rediscount bills of exchange or other eligible commercial paper from the banks
a)    Base rate; b) CRR; c) bank rate; d) Reverse repo; e) repo rate

16.  Reserve Bank of India has used other tools of regulation in the past; however, after the liberalization policy of 1991, most of these tools have since been discontinued and are no longer used by Reserve Bank of India and these tools are:
a)    Credit rationing/allocation; b) credit planning; c) credit authorization scheme; d) inventory and credit norms; e) all the above

17.  Which among the following are certain regulatory restrictions on lending by banks in terms of RBI’s directives or the Banking Regulation act, 1949:
a)    No advance or loan can be granted against the security of the bank’s own shares or partly paid shares of a company
b)    No bank should grant loans against certificate of deposits, fixed deposits issued by other banks
c)     No bank should grant loans against money market mutual funds
d)    All the above e) none of the above

18.  Which among the following are the main tools of Reserve Bank of India?
a)    Monetary control; b) cash reserve ratio; c) statutory liquidity ratio; d) open market operations e) all the above

19.  The Indian banking system is regulated in terms of the provisions
a)    Reserve bank of India act 1934; b) Banking regulation act 1949; c) companies act 1956; d) Negotiable Instruments act 1881; e) Both (a) and (b) as above

20.  Reserve Bank of India is the central banking authority in our country and according to you which is the central banking authority in United Kingdom?
a)    Bank of London; b) Bank of England; c) Federal Reserve Bank; d) Bank of UK; e) none of the above

21.  The central board of directors of Reserve Bank of India comprises ________governor; ________ deputy governors and ____________directors
a)    1-4-15; b) 1-5-15; c) 1-3-15; d) 1-2-15; e) none of the above

22.  New and reissuable currency notes are stored in _____________maintained by the banks as agents of Reserve Bank of India
a)    Currency chests; b) treasuries; c) branches; d) service units; e) godowns

23.  To control inflationary situation in the economy, RBI can increase one or more of these monetary tools:
a)    CRR-SLR-BANK RATE; b) SLR-CRR-BASE RATE; c) CRR-SLR-REPO RATE; d) CRR-SLR-REVERSE REPO RATE; e) CRR-SLR-BENCHMARKING PLR

24.  When it comes to the following term namely- PLR – what do you mean by ”L”?
a)    Liberalisation; b) Liquidity; c) Lending; d) License; e) Loan

25.  The present day’s retail banking sector is characterized by which of the following basic features?
a)    Multiple products; b) multiple channels; c) multiple customer groups; d) all the above; e) none of the above

26.  Multiple customer groups - one among the basic features of retail banking sector comprises of
a)    Consumer; b) small business; c) corporate; d) all the above; e) none of the above

27.  When it comes to retail deposit products, which among the following is irrelevant?
a)    Recurring deposit accounts; b) term deposit accounts; c) no frills accounts for common man; d) depository services; e) senior citizen deposit accounts

28.  Safe deposit locker – a product offered in the Indian retail banking segment under:
a)    Retail loan products; b) retail deposit products; c) retail services; d) retail facilities; e) retail comforts

29.  When it comes to the fund based services, which among the following is not true?
a)    Working capital finance; b) short term finance; c) bill discounting; d) vendor financing; e) export credit

30.  Find the odd man out from the following when it comes to the value added services provided by commercial banks:
a)    Tax collection; b) syndication services; c) real time gross settlement; d) cash management services; e) bank guarantees



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