MCQ ON BANKING, FINANCE AND ECONOMY 1.

The tenth Five-Year Plan period is : a) 2000-05 b) 2001-06 c) 2002-07 d) 2004-200

TEST - I

e) 2005-2010

2. !ndian corporates can no" invest in #oint vent$res and s$bsidiaries abroad to the e%tent o& ''''''( o& their net "orth. a) 200 b) 150 c) 100 d) 75

). *ini+$+ period o& a ,erti&icate o& -eposit is : a) 15 da.s b) )0 da.s c) 10 da.s d) 7 da.s

4. To accelerate /ro"th o& services e%ports &ro+ !ndia and to create a $ni0$e brand1 a ne" sche+e called 2'''''3 has been introd$ced in the 4e" Forei/n Trade Polic.. a) !ndia 5ervice &ro+ !ndia b) !ndia ,allin/ c) !ncredible !ndia d) 5erved

5. The 4e" Forei/n Trade Polic. envisa/es !ndia3s share in +erchandise trade to '''''''' "ithin the period 2004-0 . a) do$ble b) treble c) rise b. 50( d) rise b. 60(

6. 7.brid capital instr$+ents 8debt 9 e0$it.) &or+ part o& '''''' capital. a) Tier !! b) Tier ! c) Paid $p d) Pre&erence share

7. : c$sto+er has been de&ined in : a) ;an<in/ =e/$lation :ct :nti-*one. >a$nderin/ :ct b) 4e/otiable !nstr$+ents :ct d) ?Y, /$idelines c)

6. : *edi$+ @nterprise is de&ined as one in "hich invest+ent in plant and +achiner. is over the 55! li+it1 b$t less than =s. '''''. a) 5 cr. b) 10 cr. c) 25 cr. d) 50 cr

. The ;5@ 5ense% consists o& a bas<et o& ''' stoc<s. a) 50 b) 100 c) )0 d) 66

10. The Aovern+ent o& !ndia has recentl. anno$nced a sche+e &or providin/ short ter+ loans to &ar+ers at concessional rate o& ''''( p.a. $p to an a+o$nt o& =s.''' lac.

a) 71 1

b) 71 )

c)

51 1

d)

51 )

11. The provision to be +ade on 5tandard assets &or the c$rrent .ear is : a) 0.25( b) 0.40( c) 0.40( &or all loans e%cept loans to Priorit. 5ector d) 0.40( on all loans1 e%cept loans to direct :/ri B 5*@ se/+ents1 &or "hich the provision is 0.25( 12. ,la$se 4 o& the >istin/ :/ree+ent o& 5@;! re&ers to : a) anno$ncin/ o& 0$arterl. res$lts o& listed co+panies b) restriction o& F-! in p$blic sector ban<s c) corporate /overnance and &inancial penalties incl$din/ delistin/ &or co+panies "ho do not appoint the re0$ired n$+ber o& independent directors on their board d) 4one o& these 1). Chich ban< in !ndia ran<s n$+ber one in !ndia in ter+s o& +ar<et capitaliDationE a) 5;! b) !,!,! ;an< c) FT! ;an< d) !-;! ;an<

14. Chich is the &irst +$t$al &$nd in the co$ntr. to o&&er rede+ption o& its $nits thro$/h :T*s o& 7-F, ;an< and G!5: E a) =eliance *F b) FT! *F c) 5;! *F d) Pr$!,!,! *F

15. The sta<e o& 5;! in its #oint vent$re "ith T,51 ,-@d/e1 is : a) 51( b) 40( c) 60( d) 4 (

16. : ;an<3s a//re/ate capital +ar<et e%pos$re has been capped at '''( o& its net "orth. a) 5 b) 10 c) 40 d) 25

17. Financial !ntelli/ence Fnit is set $p b. ''''''''''' &or ti/htenin/ anti+one. la$nderin/ +eas$res. a) =;! b) ,entral Gi/ilance ,o++ission -epart+ent d) Finance *inistr.1 AH! c) !nco+e Ta%

16. ,redit li+its to dealers in a/ric$lt$ral +achiner. $p to =s.''' lacs are classi&ied as priorit. sector advances. a) 25 b) )0 c) 40 d) 20

1 . The +ini+$+ +at$rit. period &or ,o++ercial Paper 8,P) is ''''' da.s. a) 14 b) )0 c) 45 d) 7 2

20. The &irst 5@I pro+oted b. a corporate is : a) =eliance 5@I1 7ar.ana b) 5@@PI1 *$+bai c) *ahindra 5@I1 P$ne d) 4one o& the above 21. Gal$e added ta% 8G:T) is a t.pe o& ta% levied on val$e added b. an. econo+ic activit.1 and covers : co++odities at the +an$&act$rin/ level co++odities at the +an$&act$rin/1 "holesalin/1 and retailin/ level co++odities at the +an$&act$rin/ and "holesalin/ level co++odities and services at the +an$&act$rin/1 "holesalin/1 and retailin/ levels 22. The 5arbanes H%le. :ct o& F5: concerns : a) ai+s at i+provin/ investor con&idence in :+erican corporates b) i+provin/ 0$alit. o& corporate disclos$res and reportin/1 and increasin/ the responsibilit. o& o&&icers and directors o& co+panies in these disclos$res c) stren/then the independence o& acco$ntin/ &ir+s d) all the above 2). The !n&or+ation Technolo/. :ct1 2000 is concerned "ith : a) b) c) d) e) le/al reco/nition o& di/ital si/nat$res de&inition o& vario$s t.pes o& co+p$ter cri+es and penalties &or the sa+e appoint+ent o& certi&.in/ a$thorities &or iss$in/ di/ital si/nat$res reco/nition o& di/ital records and their ad+issibilit. as evidence in co$rts all o& the above a) b) c) d)

24. :s per =;! bench+ar< &or allocation o& ban< credit1 "o+en bene&iciaries sho$ld receive at least ''''( o& net ban< credit. a) 5 b) 10 c) 15 d) 1

25. @%port credit sho$ld be a +ini+$+ o& '''( o& net ban< credit &or sched$led co++ercial ban<s. a) 12 b) 15 c) 10 d) )

26. >oans to so&t"are ind$str. $p to a li+it o& =s.''''''' are classi&ied as priorit. sector advances. a) 50 lacs b) 100 lacs c) 1000 lacs d) 500 lacs

27. The -e+$t$alisation Hrdinance a+endin/ the 5ec$rities ,ontracts 8=e/$lation) :ct1 1 56 deals "ith : a) operations o& &orei/n +$t$al &$nds in !ndia 3

b) r$les and re/$lations &or iss$e o& di&&erent sec$rities in the capital +ar<et c) co+p$lsor. corporatisation o& stoc< e%chan/es to brin/ abo$t transparenc. and e&&icienc. in their operations d) process o& convertin/ paper based sec$rities into electronic &or+ 26. The CTH :/ree+ents cover /lobal trade in : a) /oods co$ntries b) services c) intellect$al propert. e) all o& these &) a1 b B c d) invest+ents in other

2 . Chich co++ittee had reco++ended the a+al/a+ation o& ==;s pro+oted b. sponsor ban<sE a) *itra b) 4arasi+han c) =a<esh *ohan d) *alhotra

)0. !ndia has entered into ,o+prehensive @cono+ic ,o-operation :/reee+ent "ith "hich o& the &ollo"in/ co$ntries recentl.: a) 5in/apore b) F5: c) :$stralia d) 4one o& these

)1. ;harat 4ir+an is a &o$r-.ear b$siness plan e+bar<ed b. the Aovern+ent o& !ndia &or providin/ r$ral in&rastr$ct$re in the areas o& : a) irri/ation B "ater s$ppl. b) electri&ication c) ho$sin/ teleco++$nication B connectivit. e) all the above )2. 4!J! stands &or : a) b) c) d) 4ational B !nternational @%chan/e o& !ndia 4ational !nternet @%chan/e o& !ndia 4otional !nter @%chan/e interest 4one o& the above d)

)). 5o$th :sian Free Trade :rea 85:FT:) covers ''''''''''''' co$ntries. a) the seven co$ntries "ho are +e+bers o& 5::=, b) all co$ntries in 5o$th @ast :sia c) :ll co$ntries in 5o$th and 5o$th-@ast :sia1 and :$stralia and 4e" Iealand d) Pa<istan1 ;an/ladesh1 ;h$tan1 5ri >an<a1 4epal and *aldives )4. *,:21 is : a) e-/overnance pro#ect o& the *inistr. o& ,o+pan. :&&airs b) "ill enable co+panies to &ile their ret$rns online "ith the =e/istrar o& ,o+panies c) la$nched as a pilot in ,oi+batore1 "ith plans to e%tend to -elhi shortl. d) all the above

)5. The na+e o& *icroso&t ,orporation !ndia3s !T initiative &or settin/ $p !T <ios<s in r$ral areas is na+ed : a) :adhar b) 5a<sha+ c) 5"adhan d) 5ha<thi

)6. The ne" chair+an o& the F5 Federal =eserve is : a) :lan Areenspan ;$sh )7. Chich credit card co+pan. has tied $p the =ail"a.s to iss$e a credit c$+ lo.alt. cardE a) !,!,! ,ards b) 5;! ,ards c) :;4 :+ro ,ards d) ,itiban< b) Aordon ;ro$nes c) ;en ;ernan<e d) Aeor/e

)6. Financial 4et"or< 5ervices1 the :$stralian ban<in/ so&t"are &ir+1 has recentl. been ac0$ired b. : ) Cipro b) T,5 c) !n&os.s d) 7,>

) . 5;! has applied to open branches in Pa<istan1 as per the recent a/ree+ent bet"een !ndia and Pa<istan1 at : a) >ahore and ?arachi c) =a"alpindi and 5indh b) !sla+abad and ?arachi d) >ahore and !sla+abad

40. The ris< "ei/hta/e on ban<s3 e%pos$re to capital +ar<et e%pos$res is : a) 100 ( b) 125( c) 150( d) 200(

41. @%port Hriented Fnits can retain '''''( o& their e%port earnin/s in &orei/n c$rrenc.. a) 50 b) 100 c) 60 d) 66.67

42. Forei/n invest+ent in private ban<s1 8in a//re/ate incl$din/ F-!1 F!!1 4=!1 etc.) in !ndia is per+itted $p to ''''( a) b) 74 c) 4 d) 24

4). The +ini+$+ shareholdin/ o& =;! in 5;! sho$ld be '''( as per 5;! :ct. a) 50 b) 5 c) 51 d) 55

44. =;! pa.s interest on ,== balances o& ban<s at '''''. a) ;an< =ate Iero ( b) =epo =ate c) ;an< =ate +in$s 2( d)

45. The three pillars o& the ;asel !! &ra+e"or< are : 5

a) *ini+$+ capital re0$ire+ents b) :sset K >iabilit. *ana/e+ent c) *ar<et discipline d) 5$pervisor. revie" e) all the above &) a1 c Bd 46. The ,ode o& ;an<3s ,o++it+ent has been iss$ed b. : a) =;! b) 5;! c) !;: d) ;,5;!

47. For declarin/ dividend1 ban<s sho$ld have a ,=:= o& at least ''''( &or the precedin/ 2 .ears1 and net 4P: o& less than '''''(. a) 111 ) b) 1 7 c) 101 5 d) 1 5

46. :&ter ''''''''1 &orei/n ban<s operatin/ in !ndia "ill be &reed o& =;! i+posed restrictions on their operations and treated on par "ith !ndian ban<s. a) :pril1 2006 b) :pril1 200 c) :pril1 2010 d) :pril1 2015

4 . Fnder 5ection 1 81) o& the ;an<in/ =e/$lation :ct1 1 4 1 para- ban<in/ activities re&er to : a) leasin/ b) hire p$rchase &inance c) &actorin/ operations e) all the above &) onl. a1 b B c d) credit card

50. The percenta/e o& pro&it that a ban< is re0$ired to trans&er to its reserve &$nd as per ;an<in/ =e/$lation :ct is ''''''(. a) 25 b) 20 c) )0 d) 50

MCQ ON BANKING, FINANCE AND ECONOMY ANSWERS:

1 11 21 )1 41 , @ ; 2 12 22 )2 42 : , , ; ) 1) 2) )) 4) ; @ : 4 14 24 )4 44 : : 5 15 25 )5 45 : : ; F 6 16 26 )6 46 ; , ; , 7 17 27 )7 47 , ; ; 6 16 26 )6 46

TEST - I
; ; F ; ; , ; : F 10 20 )0 40 50 ; , : , ;

1 2 ) 4