Tuesday, 9 May 2017

Banking Questions Test (MCQ)- 64

Q1. The credit policy decision is taken by a committee headed by the
a.    Finance Minister
b.    RBI Governor
c.     Deputy Governor of RBI

d.    Executive Director of RBI in charge of credit policy department
e.    Finance Secretary to GoI

Q2. The RBI asks for DSB returns from Banks which is a mechanism of …. surveillance by RBI.
a.    Offsite
b.    Onsite
c.     Fraud
d.    Instability
e.    Online Real-time

Q3. RBI prepares Annual Financial statement as on … for every year
a.    March 31     
b.    December 31                    
c.     June 30                  
d.    September 30
e.    None of the above

Q4. In a Repo transaction with RBI the government securities go to the account of the
a.    The counterparty Bank
b.    Clearing Corporation of Ind Ltd
c.     FIMMDA
d.    RBI
e.    None of the above

Q5. The following is a mechanism for injection of liquidity by RBI to the financial system
a.    Repo
b.    Reverse Repo
c.     Hike in CRR
d.    Hike in interest rate
e.    None of the above

Q6. Which of the following is true for a Repo transaction?
a.    Repo is the acronym of Repurchase
b.    In a Repo transaction a bank borrows money for the short term by selling securities (to RBI) with the condition to buy back the same after the agreed period.
c.     The securities which are eligible for repo/ reverse repo facility are GoI dated securities, T bills and state development loans.
d.    Presently Repo rate is 6.75%
e.    All of the above

Q7. Which of the following is true for a Reverse Repo transaction?
a.    In a Reverse Repo transaction RBI borrows money and sells securities, with a condition that RBI will purchase back the same after the agreed period.
b.    Reverse repo rate is always less than the Repo rate by 100 basis points.
c.     A bank can avail repo and reverse repo facility for a period of minimum 1 day to maximum 14 days.
d.    The maximum amount which a bank can borrow from RBI by means of overnight repo is 0.25% of the NDTL of the bank concerned. The minimum amount which can be borrowed is Rs.5 Cr.
e.    All of the above

Q8. Open Market operation means
a.    Providing finance to priority sector
b.    Speculative activities
c.     Buying & selling of securities by RBI
d.    Debt waiver
e.    Selling of CPSU shares in stock exchanges like NSE and BSE

Q9. Cash kept in currency chest is owned by
a.    Currency chest branch
b.    Head office of the Bank
c.     SBI
d.    RBI
e.    None of the Above

Q10. The rating of domestic banks is given on a basis which is called … rating.
a.    CACS          
b.    CAMELS      
c.     AAA, AA and A       
d.    Fitch

e.    Standard & Poor’s


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