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TEST SERIES - 55 (II)

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

Open Market Operations of Reserve Bank of India refer to

a)

Trading in securities

b)

Auctioning of Foreign Exchange

c)

Transaction in Gold

d)

None of the above

2.

Which one of the following statements is correct regarding increase in the Cash Reserve Ratio (CRR) in India?

a)

It increases credit creation

b)

It reduces credit creation

c)

It does not affect credit

d)

It denotes liberal monetary policy

3.

A customer wishes to purchase some US dollars in India. He/she should go to

a)

Public Debt Division of the RBI only

b)

American Express Bank only

c)

RBI or any branch of a bank which is authorized for such business

d)

Ministry of Foreign Affairs

4.

Open market operations of RBI refer to buying and selling of

a)

Commercial bills

b)

Foreign exchange

c)

Gold

d)

Government bonds

5.

The Bank Rate is the rate interest at which the Reserve Bank of India provides loans to the

a)

Scheduled Commercial Banks

b)

Public Sector

c)

Corporate Sector

d)

Foreign Institutional Investors

6.

Who central the activities of indigenous bankers?

a)

Lead Bank

b)

Regional Rural Bank

c)

Reserve Bank of India

d)

None of the above

7.

Which among the following sectors contributes most to the saving in India?

a)

Banking and financial sector

b)

Private corporate sector

c)

Export sector

d)

Household sector

8.

Which bank in India performs duties of Central Bank?

a)

Central Bank of India

b)

State Bank of India

c)

Both (a) and (b)

d)

Reserve Bank of India

9.

Which of the following is India’s largest public sector Commercial Bank at present?

a)

IDBI Bank

b)

ICICI Bank

c)

AXIS Bank

d)

SBI

10.

Which bank was earlier called the ‘Imperial Bank of India’?

a)

RBI

b)

SBI

c)

UBI

d)

PNB

11.

Which of the following banks is a nationalised bank?

a)

ICICI Bank

b)

Yes Bank

c)

Saraswat Co-operative Bank

d)

Reserve Bank of India

12.

Green Banking means

a)

Development of forestry by banks

b)

Financing of environmental friendly projects by banks

c)

Financing of irrigation projects by banks

d)

None of the above

13.

Which of the following organisations/ banks has done a commendable work in the field of micro-finance was awarded Nobel Prize also in the past?

a)

Grameen Bank of Bangladesh

b)

CRY

c)

ASHA

d)

NABARD

14.

The EXIM Bank of India was established in

a)

1964

b)

1976

c)

1980

d)

1982

15.

Which of the following is not the part of the scheduled banking structure in India?

a)

Money lenders

b)

Public Sector Banks

c)

Private Sector Banks

d)

Regional Rural Banks

16.

The interest rate at which the Reserve Bank of India lends to commercial banks in the short term to maintain liquidity is known as

a)

Interest Rate

b)

Repo Rate

c)

Bank Rate

d)

Reverse Repo Rate

17.

Which of the following is not a foreign bank operating in India?

a)

ABN AmroABN Amro

b)

NSBC

c)

Standard Charted Bank

d)

Yes Bank

18.

It is said that ‘good banker is one who knows the distinction between Mortgage and a’

a)

Hundi

b)

Bill of Exchange

c)

Liquid Assets

d)

Bond

19.

Credit Rationing in India is done by

a)

RBI

b)

SBI

c)

UTI

d)

LIC

20.

Which of the followings is an easy way to providing credit to the farmer community?

a)

Kisan Credit Card

b)

Indira Vikas Patra

c)

National Saving Certificates

d)

Loan against gold

21.

Which of the following is not a bank or finance company?

a)

Barclays

b)

BNP Paribas

c)

HSBE

d)

Lufthansa

22.

Which of the following is considered an informal method of getting credit/ finance?

a)

Internet Banking

b)

Branch Visits

c)

Telebanking

d)

Going to Money lenders

23.

Which of the following is not a banking related system?

a)

Portfolio Management

b)

Overdraft

c)

Treasury Operation

d)

Proclamation

24.

Which bank became the first bank to open its branch in China?

a)

IDBI Bank

b)

HDFC Bank

c)

State Bank of India

d)

Punjab National Bank

25.

Quantitative credit controls do not include

a)

open market operations

b)

back rate

c)

cash reserve ration

d)

RBI directives

26.

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?

a)

Cash Credit Ratio

b)

Debt Service Obligation

c)

Liquidity Adjustment Facility

d)

Statutory Liquidity Ratio

27.

Which of the following is not a banking related or financial term?

a)

Credit worthiness

b)

Margin Money

c)

Payment gateway

d)

Polymerisation

28.

Reserve Bank of India was nationalised in

a)

1947

b)

1948

c)

1949

d)

1951

29.

In which year was the Reserve Bank of India established?

a)

1935

b)

1940

c)

1947

d)

1949

30.

What are ‘Open Market Operations’?

a)

Activities of SEBI-registered brokers

b)

Selling of currency by the RBI

c)

Selling of gilt-edged securities by the Government

d)

Sale of shares by FIIs

31.

When was the NABARD formed?

a)

1952

b)

1962

c)

1982

d)

1992

32.

Which among the following is an asset for a Commercial Bank?

a)

Credit to farmers

b)

Deposit of public

c)

Borrowing from RBI

d)

Demand deposits of Industries

33.

Various banks in the country have installed machines which disburse money to general public. The machines are called

a)

Coin Dispensing Machines

b)

ATMs

c)

Debit Card Machines

d)

Ledger-Machines

34.

Which amongst the following organisations make major credit policies for the Regional Rural Banks (RRBs)?

a)

NABARD

b)

Asian Development Bank

c)

World Bank

d)

State Bank of India

35.

Before opening a new branch of a bank, banks are required to take mandatory permission/license from

a)

Reserve Bank of India

b)

Indian Bank Association

c)

Securities and Exchange Board of India

d)

State Government

36.

Government of India, for the first time nationalised 14 large Commercial Banks in the year

a)

1956

b)

1959

c)

1969

d)

1971

37.

Which of the following policies/ agreements/ accords is closely associated with the reform in Banking Industry?

a)

Doha Accord

b)

Basel Accord

c)

Look East Policy

d)

Geneva Framework

38.

Which of the following organisations has the privilege of issuing Bank Notes (Currency) in India?

a)

State Bank of India

b)

Reserve Bank of India

c)

All Nationalised Banks

d)

New Note Printing Press in India

39.

India has different categories of commercial banks which of the following is not one such category?

a)

Nationalised Banks

b)

Co-operative Banks

c)

Private Banks

d)

Commodity Banks

40.

Which of following States achieved 100% financial inclusion? (Each and every family in the State has atleast one bank account.)

a)

Delhi

b)

Maharashtra

c)

Kerala

d)

Karnataka

41.

India’s largest Commercial Bank is

a)

Central Bank of India

b)

State Bank of India

c)

Indian Overseas Bank

d)

Bank of India

42.

‘Interest is the reward for abstinence’. Who says this?

a)

Keynes

b)

Marshall

c)

Malthus

d)

David Ricardo

43.

If you visit the bank of a bank you will normally not see a department/ section/ counter names as

a)

cash

b)

credit

c)

customer care

d)

housekeeping

44.

Rate of interest is determined by

a)

The rate of return on the capital invested

b)

Central Government

c)

Liquidity Preference

d)

Commercial Banks

45.

Which one of the following is not a quantitative credit control technique?

a)

Bank Rate

b)

Cash Reserve Ratio (CRR)

c)

Statutory Liquidity Ratio (SLR)

d)

Increase of interest rate on saving deposit

46.

The Narasimham Committee (1991) on financial reforms proposed for establishment of a

a)

Four tier hierarchy of the Banking structure

b)

Three tier hierarchy of the Banking structure

c)

Two tier hierarchy of the Banking structure

d)

United control by the apex institutions

47.

Which of the following is not the function of Reserve Bank of India?

a)

Provide Credit facility to the general public

b)

Keep Government money in various account heads

c)

Keep Foreign Exchange Reserve of the country in safe custody

d)

Frame Monetary and Credit Policy

48.

The head office of the State Bank of India (SBI) is located in

a)

Kolkata

b)

New Delhi

c)

Pune

d)

Mumbai

49.

Which from the following is not true when the interest rate in the economy goes up?

a)

Saving increases

b)

Lending decreases

c)

Cost of production increases

d)

Return on capital increases

50.

Many a time we hear about NPA in banking terminology.What is the full form of NPA?

a)

Non-Performing Assets

b)

Negotiable and Preferential Asset

c)

New Performing Avenues

d)

Net Performing Average