Financial Institiution & Banking-3rd sem finan.

–venkata

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Question The Shipping Credit and Investment Company of India Ltd. has changed its name to
________ effective from October 1992.
Correct Answer SCICI Ltd
Your Answer SCICI Ltd

Select The Blank

Question AFC's membership consists of commercial, cooperative banks and DFIs including
________.
Correct Answer EXIM bank
Your Answer EXIM bank

Multiple Choice Single Answer

Question Financial institutions deal in :-
Correct Answer Financial assets
Your Answer Financial assets

Multiple Choice Single Answer

Question The lender of the last resort to the market is the :-
Correct Answer RBI
Your Answer RBI

Select The Blank

Question One of the objectives of NHB is to augment the ________ resources for the housing
sector.
Correct Answer Financial
Your Answer Financial

Multiple Choice Multiple Answer

Question IDA lends to poor countries :-
Correct Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten
years
Your Answer By borrowing from IBRD , By lending at 0% interest. , For periods up to ten years

Multiple Choice Single Answer

Question A company issues CP to save on :-
Correct Answer Interest cost
Your Answer Interest cost

True/False
Question PFC has been persuading State Governments restructuring of their power sector to
make them viable.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question The ultimate source of money in India is:-
Correct Answer RBI
Your Answer RBI
True/False
Question The SFCs also borrow from SIDBI & IDBI.
Correct Answer False
Your Answer True

Multiple Choice Single Answer

Question RBI was established under the:-
Correct Answer RBI Act
Your Answer RBI Act

Multiple Choice Multiple Answer

Question The major area of AFC's specialisation included Crop Production as well as:-
Correct Answer Crop Planning , Plant Protection , Farm Management
Your Answer Crop Planning , Plant Protection , Farm Management

Multiple Choice Multiple Answer

Question A member's IMF Quota determines its :-
Correct Answer Financial commitment , Voting power , Drawing power
Your Answer Financial commitment , Voting power , Drawing power

Select The Blank

Question Period of Holiday Insurance is ________.
Correct Answer Six months or less
Your Answer Three years

Multiple Choice Single Answer

Question The underdeveloped markets are characterised by :-
Correct Answer Government regulation and control
Your Answer Government regulation and control

Multiple Choice Single Answer

Question Cetificate of deposit are issued by :-
Correct Answer Banks
Your Answer Banks

True/False
Question The bids for T-Bills are on price/interest basis.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question The unorganised financial system includes :-
Correct Answer Indigenous bankers
Your Answer Indigenous bankers

Multiple Choice Single Answer

Question Long term debt instruments have a maturity of :-
Correct Answer Over one year
Your Answer Over one year

Multiple Choice Multiple Answer

Question The general insurance business can be :-
Correct Answer Marine insurance , Fire insurance , Miscellaneous
Your Answer Fire insurance , Miscellaneous , Marine insurance

True/False
 Question NABARD does not provide Refinance for stocking & distribution of Chemical
Fertilisers.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer

Question The unorganised financial system comprises of :-
Correct Answer Money lenders , Indigenous bankers , Lending pawn brokers
Your Answer Money lenders , Indigenous bankers , Lending pawn brokers

True/False
Question NABARD is an apex institution in the field of Integrated Rural Development.
Correct Answer True
Your Answer True

Select The Blank

Question 55% of HUDCO loans are earmarked for________& low income groups.
Correct Answer Weaker sections
Your Answer Weaker sections

Multiple Choice Single Answer

Question Development Financial institutions include :-
Correct Answer State financial institutions
Your Answer State financial institutions

Multiple Choice Single Answer

Question Money Markets Instruments have a maturity of less than :-
Correct Answer One year
Your Answer One year

Select The Blank

Question The price in financial markets is known as ________.
Correct Answer Rate of interest
Your Answer Rate of interest

Match The Following

Question Correct Answer Your Answer

Development financial institutions IFCI IFCI

Organised sector Banking System Banking System

Unorganised sector Indigenous banks Indigenous banks

Mutual funds UTI UTI

Select The Blank

Question The HDFC was set up in 1977 by the ________.
Correct Answer ICICI
Your Answer ICICI

Multiple Choice Single Answer

Question Certificate of deposit is a :-
Correct Answer Usance promissory note
Your Answer Term Deposit Receipt
True/False
Question A Bill of Exchange is negotiable.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question Commercial Papers are issued by :-
Correct Answer Corporates
Your Answer Corporates

Multiple Choice Single Answer

Question A current account where the customer can withdraw more than the balance is :-
Correct Answer Overdraft
Your Answer Overdraft

Multiple Choice Multiple Answer

Question The loans of finance companies are generally :-
Correct Answer At high interest , Unsecured , Based on borrowers worth
Your Answer At high interest , Unsecured , Based on borrowers worth

Multiple Choice Single Answer

Question For a focus on the SSI Sector in 1986 IDBI created :-
Correct Answer SIDF
Your Answer SIDF

True/False
Question Issuance of CD attracts reserve requirements.
Correct Answer False
Your Answer False

True/False
Question Banks issue Guarantees on behalf of their clients.
Correct Answer True
Your Answer True

Match The Following

Question Correct Answer Your Answer

NABARD Rural Development Rural Development

AFC Ltd Consultancy Consultancy

HUDCO Housing Housing

NCDC Development of Cooperatives Development of Cooperatives

True/False
Question Under MIGA the World bank offers various forms of Political Insurance.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question In case of a Life policy it is possible to withdraw from the obligation to contribute
further premium by :-
 Correct Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the
open market
Your Answer Surrendering the policy , Converting it into paid up policy , Assigning it in the open
market

Multiple Choice Single Answer

Question The organised financial system includes :-
Correct Answer Commercial banks
Your Answer Commercial banks

Select The Blank

Question The term ________ refers to the act of a bank extending finance to the seller against
a letter of credit.
Correct Answer Negotiation
Your Answer Negotiation

Multiple Choice Multiple Answer

Question Functions of a Bank's H.O. include:-
Correct Answer Liaison with RBI , Evolve Policies , Vigilance & Control
Your Answer Liaison with RBI , Evolve Policies , Vigilance & Control

Multiple Choice Multiple Answer

Question Bonds issued by institutions through SPVs to execute infrastructure projects are :-
Correct Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd
Your Answer MSR Dev.Corporation , MKV Dev. Corporation. , SSN Nigam Ltd

Select The Blank

Question GIC raises funds to meet claims from ________.
Correct Answer Premium collected
Your Answer Premium collected

Multiple Choice Multiple Answer

Question Treasuries could be either those of the :-
Correct Answer PSUs , Private Sector Cos. , Govt.bodies
Your Answer PSUs , Private Sector Cos. , Govt.bodies

Multiple Choice Multiple Answer

Question Under Project Finance Scheme IDBI provides assistance for :-
Correct Answer New Projects , Renovation , Modernisation
Your Answer New Projects , Renovation , Modernisation