Banking Awareness for NICL AO

1. Who among the following are the beneficiaries of Ways and Means Advances (WMA) facility of Reserve Bank of India?
  1. Commercial Banks
  2. Regional Rural banks
  3. State Governments
  4. Authorized Dealers of Foreign Exchanges
  5. All of above
2. In context with the markets, what is dematerialization of securities?
  1. Shortening the time of debt repayment on securities
  2. Electric holding of the shares replacing the paper securities
  3. The price of a shares falling below certain point in the share market
  4. The buyback of shares by a company
  5. Dividend distribution
3. What is the minimum maturity on Certificates of Deposit in India?
  1. 7 days
  2. 30 days
  3. 60 days
  4. 90 days
  5. 120 days
4. In context with the Real Time Gross Settlement which is maintained by the RBI in India, what is the number of characters in the alphanumeric codes provided to each bank connected with Core Banking System?
  1. 8
  2. 9
  3. 10
  4. 11
  5. 12
5. Which of the following committee is known to lay the foundation for induction of Computer Technology in the Indian Banking Sector ?
  1. Abid Hussein Committee
  2. Dr. Rangarajan Committee
  3. Narsimham Committee
  4. Tarapore Committee
  5. Vijay kelker Committee
6. The unemployment of a person when he/ she is in midst of transiting between jobs, searching for new job comes under the which of the following category?
  1. Cyclical
  2. Voluntary
  3. Frictional
  4. Seasonal
  5. Hidden
7. Money laundering means
  1. Hiding of income source mainly to avoid income tax
  2. Money acquired through criminal sources.
  3. Money acquired from undisclosed foreign sources.
  4. Process of conversion of money obtained illegally to appear to have originated from legitimate sources.
  5. None of the Above
8. Which of the following schemes are not meant for investment purposes?
  1. National saving certificate
  2. Mutual funds
  3. Infrastructure bonds
  4. Letter of credit
  5. None of the above
9. World investment report is published by?
  1. UNDP
  2. World bank
  3. IMF
  5. None of the Above
10. Which of the following are functions of foreign bank?
a) remitting money from one country to another.
b) discounting of foreign bills.
c) buying and selling of metals.
d) helping in import and export trade.
  1. Only A and B
  2. Only B and C
  3. A, B and C
  4. All A, B, C & D
  5. None of the Above
11. What does the M in M-banking stands for?
  1. Money
  2. Marginal
  3. Message
  4. Mutual fund
  5. Mobile
12. Merchant banking in India is governed by
  1. SEBI
  2. RBI
  3. IRDA
  4. Ministry of Finance
  5. None of the Above
13. In context with the banking business, which among the following is a correct definition of liquidity risk?
  1. Risk arising from funding of long term assets by short term liabilities or funding of short term assets by long term liabilities
  2. Risk arising from adverse movement of interest rates during a liquidity crunch in the markets
  3. Risk arising from the adverse movement of the value of the assets /investments etc.
  4. Risk arising from a party becoming defaulter
  5. None of the Above
14. The stock market deals in _______?
  1. Only short term securities
  2. Only Long term securities
  3. Both short term and long term securities
  4. Only secured bonds
  5. None of the Above
15. Mortgage is a
  1. Security on movable property for a loan given by a Bank.
  2. Security on immovable property for a loan given by a Bank.
  3. Facility on immovable property for a loan given by Bank.
  4. Any security given for loan purposes.
  5. None of the Above
16. Banks have different interest rates for different loan products. to which rate are they linked?
  1. Prime Lending Rates
  2. Base Rate
  3. RBI Administered Rates
  4. Bank Rate
  5. Solely on discretion of the particular bank
17. In the context with investment what are A, AA+ and AAA+?
  1. Stock Exchange Index
  2. Credit Ratings
  3. Market Stability Index
  4. Profit Equity Index.
  5. None of the Above
18. Round Tripping is normally used in context with which of the following _____?
  1. Capital Markets
  2. Foreign Direct Investments
  3. Cash Deposits
  4. Foreign Remittances
  5. Foreign currency swaps
19. The government wants to provide public sector banks “right to passage”. What is right to passage?
  1. The Banks can raise equity capital through rights issue.
  2. The Banks can seize the hypothecated goods.
  3. The Banks can raise tier 1 capital.
  4. The Banks can issue various bonds.
  5. None of the Above
20. Who among the following are the beneficiaries of Ways and Means Advances (WMA) facility of Reserve Bank of India?
  1. Commercial Banks
  2. Regional Rural banks
  3. State Governments
  4. Authorized Dealers of Foreign Exchanges
  5. All of above
21. If a customer does not get satisfactory responses from the bank regarding his complaint he can approach the banking ombudsman with in how much time?
  1. 15 Days
  2. 10 Days
  3. 1 Month
  4. 2 Months
  5. None of the Above
22. Normally which of the following date of a month is observed as Customer day in Indian Banks on which the branch heads / officials are available to hear and redress customer grievances?
  1. 7th
  2. 15th
  3. Last Saturday of each month
  4. Second Saturday of each month
  5. Last day of each month
23. In context with the macroeconomics , Philips Curve is a relationship between the rates of ___?
  1. Unemployment & Exim trade
  2. Unemployment and Inflation
  3. Unemployment and Demand
  4. Unemployment and Poverty
  5. None of the above
24. Which among the following is not a pillar of BASEL II CRAR?
  1. Minimum Capital Requirement
  2. Risk Management
  3. Supervisory review of capital adequacy
  4. Market discipline
  5. All of above are pillars of BASEL II CRAR
25. The Reserve Bank of India has decided to help banks, as a temporary measure, by providing additional liquidity support under LAF. What is the full form of LAF?
  1. Loan Adjustment Fund
  2. Liquidity Adjustment Facility
  3. Long Awaited Funds
  4. Loan against Funds
  5. None of the above


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