Module IV Banking Theory and Practices

What is another term for wholesale banking in India?

• Retail Banking

• Personal Banking

• Corporate Banking

• Cooperative Banking

Which of the following is NOT a function of wholesale banking?

• Capital financing

• Currency conversion

• Personal loan disbursement

• Trade finance

Term loans are primarily used for:

• Day-to-day operational expenses

• Purchasing machinery and expansion

• Paying employee salaries

• Short-term credit needs

A working capital loan is generally:

• Long-term in nature

• Used for infrastructure projects

• Short-term and revolving in nature

• Used for employee training programs

Which type of loan is used to finance large infrastructure projects such as roads and power plants?

• Working Capital Loans

• Term Loans

• Project Financing

• Overdraft Facility

Which financial instrument ensures payment from a buyer to a seller in trade transactions?

• Letter of Credit (LoC)

• Bill of Exchange

• Bank Overdraft

• Demand Draft

Underwriting ensures:

• That a company’s shares are fully subscribed

• The reduction of a company’s debt

• That only government bonds are issued

• The selling of foreign currency

Which capital-raising method involves selling securities to a select group of investors?

• IPO

• FPO

• Rights Issue

• Private Placement

The primary function of EXIM Bank is:

• Regulating stock exchanges

• Providing credit for international trade

• Offering insurance to exporters

• Controlling inflation rates

Which financial instrument is used by Indian companies to raise capital in international markets?

• Mutual Funds

• Treasury Bills

• Global Depository Receipts (GDR)

• Bank Fixed Deposits