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GST Council is headed by.. K.V. Gnana Kumar

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Director, DBS, Hyderabad

Model Questions 1. What is Round Tripping? a) Surrendering the Foreign Currency after returning from a Business Trip b) Surrendering the Foreign Exchange after completing the higher education abroad c) Black Money from one country routing through other countries and coming back to originating country afresh d) Family VISA facility provided to Indians to visit any of the nation for a particular year during summer e) None of the above 2. Which of the following abbreviation given below is incorrect? a) MIGA - Multilateral Investment Guarantee Agency b) BFSI - Banking, Financial Services & Investment c) YTM - Yield to Maturity d) HTM - Held to Maturity e) WPI - Wholesale Price Index 3. Which of the following is not a function of General Insurance? a) Cattle Insurance b) Crop Insurance c) Fire Insurance d) Life Insurance e) None of the above 4. State which of the following statement is/are true? a) RBI has direct supervision over depositories and mutual funds b) Monetary control is exercised through Cash Reserve Ratio and Statutory Liquidity Ratio c) Primary dealers mainly deal in shares, mutual fund units etc d) Issue and servicing of government debt is managed by commercial banks e) The decrease in Statutory Liquidity Ratio contracts the credit creation 5. Which of the following statement is/are not true? a) Depositories hold securities in Demat form b) Cash Reserve Ratio is the mandatory deposit to be held by Banks with RBI (voluntary mandatory) c) The stock exchanges provide clearing house facilities for netting of payments and securities delivery d) Urban Cooperative Banks are controlled by State Governments and RBI e) Leasing, hire purchase and bill discounting are the domain of

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mutual funds Resident Indians who returned from foreign land can hold foreign currency through ____ Account. a) RFC b) NRO c) NRE d) FCNR e) Any of the above accounts State whether each of the following statements are 'true' a) RBI is the regulator of banks and the securities market in India b) RBI started functioning from 1934 and onwards c) RBI maintains the financial stability of financial institutions in India d) RBI appoints the CEOs of private sector banks e) Only c & d Which of the following entity is not permitted to participate both as lender and borrow in the call/notice money marker? a) Cooperative banks b) NBFC c) Primary dealers d) Scheduled Commercial banks e) None of the above RBI was nationalized on ____on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation. a) 1949 July 1 b) 1951 January 26 c) 1949 January 1 d) 1955 July 1 e) 1935 April 1 Who is the Chairman of DICGC? a) Usha Ananthasubramanian b) Murali M. Natarajan c) N.S.Vishwanathan d) Anupam Srivastava e) Yaduvendra Mathur Which of the following will not have a maturity? a) Money Market Instruments b) Junk Bonds c) PSU Bonds d) Perpetual Bonds e) None of the above GST Council is headed by: a) Finance Minister b) Prime Minister c) Home Minister d) Minister for HRD e) Deputy Governor of RBI The Amendments to Banking Ombudsman Scheme 2016 came into force with effect from: a) 2017 July 1 b) 2017 July 3 c) 2017 June 1 d) 2017 June 3 e) 2017 April 1 One of the following categories of investors need not obtain a certificate of registration from SEBI in order to buy , sell or deal in securities: a) Stock broker

BANK POs, Clerks

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ia Banking Spec Awareness

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b) Portfolio manager c) Investment adviser d) Retail investor e) Only a & b The issue of new securities to existing shareholders at a ratio to those already held is known as: a) Right Issue/Rights Shares b) Bonus Issue c) Preference Issue d) Bonds issue e) None As per SEBI guidelines, in a Book Building process the cap in the price band: a) Should be at least 10 per cent of the floor price b) Should not be more than 20 per cent of the floor price c) Should not be more than 5 per cent of the floor price d) Should not be more than 15 per cent of the floor price e) No such limit Participatory notes are like contract notes issued by: a) Foreign Institutional Investors (FIIs) to entities that want to invest in the Indian stock market but do not want to register themselves with the SEBI b) Commercial banks to their investors c) Government of India to banks d) SEBI to Public Sector Enterprises e) None Under ASBA facility, investors can apply in any public/rights issues by using which of the following? a) Their bank account b) Demand draft c) Cheque d) Cash e) b or c A Fund of Funds is a scheme that invests primarily: a) In money market instruments b) In other schemes of the same mutual fund or other mutual funds c) In the bullion market d) Only in primary market e) In the Pension Fund Centralized Borrowing and Lending Obligation (CBLO) a money market instrument is operated by: a) Clearing Corporation of India Ltd. b) RBI c) SEBI d) Govt. of India e) IDRBT Interest rate swaps usually involve the exchange of a fixed inte-

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rest rate for a floating rate, or vice versa, to reduce or increase exposure to fluctuations in interest rates. In India interest rate swaps are commonly traded on which of the following benchmark? a) LIBOR b) Bank Rate c) MIBOR d)Repo rate e) IRS A mutual fund is set up in the form of: a) A trust b) A Company incorporated under the Indian Companies Act c) By an Act of Parliament d) Off shoot of SEBI e) None Who is the President of Asian Development Bank? a) Haruhiko Kuroda b) Tadavo Chino c) Takehiko Nakao d) Mitsuo Sato e) Kimimasa Tarumizu Under Foreign Exchange Management Act (FEMA) the emphasis is on: a) Management of foreign exchange b) Punishing the Forex violators c) Recovery of penalty d) Management of VISA to students going abroad e) None Muhammad Yunus is associated with: a) Micro Finance b) Leasing c) Share market d) Bullion market e) None What is a Lease? a) A rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on specified dates to the owner b) A legal contract between the owner of an asset and its user, containing certain conditions including payment of a specified amount by the user to the Owner for use of the asset c) An agreement for only 11 months d) An agreement for 11 years e) None of the above Negative Lien means the borrower does not create any charge on assets, but gives an undertaking to the bank. Which of the following statements are correct regarding the said undertaking, which states that? a) He is the owner of the assets b) The asset is free from encumbrances c) He will not dispose of the asset or create any other charge without permission from the Bank d) It has no legal enforceability in the court of law

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e) All the above Expand DRI related to a scheme meant for weaker section of our country. a) Different Rate of Interest b) Different Rational Interest c) Differed Rate of Interest d) Differential Rate of Interest e) None of the above Right of Set off means adjustment of credit balance in deposit account to debit balance in loan account. What are the conditions to be fulfilled before exercising the Right of Set off? a) Prior notice to be issued to the depositor b) Loan should be due, cannot be exercised for future debts c) Can be exercised for time barred debts d) Loan and deposits should be in same name e) All the above Pledge is defined under Section 172 of the Indian Contract Act,1872. Which of the following are correct regarding Pledge ? a) The bailment of goods as security for payment of a debt or performance of a promise. Ex. Pledge of Gold b) Ownership is with borrower, while the possession is with the bank c) Bank to take care of goods pledged to it including insurance d) In case of default in repayment, goods pledged can be sold/auctioned only after giving notice to borrower e) All the above In a contract of guarantee which of the following is/are correct? a) The person who gives guarantee is called surety b) The person for whom guarantee is given is called the "principal debtor" c) The person to whom the guarantee is given is called the "principal creditor" d) The guarantor's responsibility in repaying the loan is coextensive with that of the principal borrower. i.e., If the principal borrower fails to repay, the outstanding loan amount can be recovered from the Guarantor. e) All the above KEY

1) c 6) a 11) d 16) b 21) c 26) b 30) e

2) b 7) e 12) a 17) a 22) a 27) e 31) e

3) d 8) b 13) a 18) a 23) c 28) d

4) b 9) c 14) d 19) b 24) a 29) e

5) e 10) c 15) a 20) a 25) a