120.The Reserve Bank of India (RBI) was nationalized on

 (1) 1 January, 1949 (2) 1 July, 1955

 (3) 19 July, 1969 (4) 15 April, 1980

 (5) None of the above

121.Which of the following acts govern the RBI functions?

 (1) RBI Act,1934      (2) Banking Regulation Act, 1949

 (3) Companies Act, 1956

 (4) Foreign Exchange Regulation Act, 1973

 (5) Foreign Exchange Management Act,

122. The RBI is not expected to perform the function of

 (1) the banker to the government

 (2) accepting deposit from Commercial  Banks

 (3) accepting deposits from general public

 (4) issuer of currency

 (5) None of the above

123. Headquarters of Reserve Bank of India is in

 (1) New Delhi  (2) Mumbai (3) Kolkata 

 (4) Chennai (5) Hyderabad

124. The first Governor of the Reserve Bank of India 

       from 1 April1935 to 30 June, 1937 was

 (1) Sir Osborne Smth  (2) Sir James Taylor

 (3) C.D. Deshmukh

 (4) Sir Benegal Rama Rao (5) KG. Ambegaonkar

125.22nd and Current Governor of Reserve Bank of 

     India is 

 (1) Manmohan Singh (2) C. Rangarajan 

 (3) Bimal Jalan  (4) Y.V. Reddy

 (5) D. Subbarao

126.Which of the following rates is not decided by RBI?

 (1) Bank Rate  (2) Repo Rate (3) Reverse Repo Rate

 (4) Prime Lending Rate  (5) Cash Reserve Ratio

127 .The Reserve Bank of India was set up on the    recommendations of the

 (1) Narasimham Committee 

 (2) Hilton-Young Commission

 (3) Mahalanobis Committee

 (4) Fazal Ali Commission  (5) None of the above

128. Which of the following formulates. implements 

       and monitors the monetary policy?

 (1) Ministry of Finance  (2) RBI

 (3) SBI (4) ICICI Bank  (5) None of the above

129.Which of the following is th central banking    institution India?

 (1) State Bank of India  (2) Ministry of Finance 

 (3) Reserve Bank of India

 (4) Finance Commission of India

 (5) None of the above

130. The Reserve Bank of India had divested its stake 

     in State Bank of India to

 (1) IDBI Bank (2) LIC (3) ICICI Bank

 (4) Government of India (5) None of the above

131. At Present the RBI holds one per cent of  shareholding in?

 (1) State Bank of India         (2) National Housing Bank

 (3) State Bank of Hyderabad

 (4) National Bank for Agriculture and Rural Development  (NABARD)

 (5) None of the above

132. The number of regional offices of RBI is

 (1) 20  (2) 21   (3) 22 (4) 23   (5) None of these

133. In India, the RBI prescribes the minimum SLR  level for Scheduled
       Commercial Banks in India in specified assets as a percentage of Bank’s

 (1) Net Demand and Time Liabilities

 (2) Demand Liabilities (3) Time Liability

 (4) None of the above (5) All of the above

134 . CRR refers to the share of that banks Rural have 

     to maintain with RBI of their net demand and time   liabilities.

 1) Liquid cash   (2) forex reserves 

 (3) gold  (4) liquid cash  (5) None of the above

135.The RBI has adopted _____ Model in which mobile   banking and is
     promoted through business correspondents of banks.

 1) Bank Led  (2) Band Mobile (3) Mobile 

 (4) All of these S) None of these

136. Services offered to government departments include   all the above except 

 (1) payments of salaries and pensions

 (2) distributing RBI bonds to government departments

 (3) direct and indirect tax collections

 (4) remittance facilities (5) None of the above

137. Which of the following is/are known as Banker’s Bank?

 (1) SBI  (2) NABARD (3) RBI 

 (4) All of these (5) None of these

138. Which of the following is the central bank of the  country?

 (1) RBI  (2) SBI (3) RRB 

 (4) NABARD (5) None of these

139 . RBI was established on

 (1) April 1, 1935   (2) March 1, 1935

 (3) April 1, 1934   (4) March 1, 1934 

 (5) None of these

140. Which of the following is/are functions of the RBI?

 (I) Acts as the currency authority

 (ii) Controls money supply and credit

 (iii) Manages foreign exchange

 (iv) Serves as a banker to the government

 (1) (i) and (Ill)  (2) (ii) and (iii)

 (3) (i), (ii) and (iii)  (4) (i), (ii), (iii) and (iv)

 (5) None of these

141. Central Bank

 (1) creates (2) controls  (3) restricts

 (4) all of these  (5) None of these

142  credit investment.

 (1) Dear (2) Cheap  (3) Restricted

 (4) Green (5) None of these

143. Quantitative instrument of RBI can be

 (1) bank rate policy (2) cash reserve ratio

 (3) statutory liquidity ratio  (4) All of the above

 (5) None of the above

144. Objective of monetary policy of RBI is to

 (1) control inflation

 (2) discourage loarding of commodities

 (3) encourage flow of credit into neglected sector

 (4) All of the above  (5) None of the above

145. When RBI is lender of last resort, what does it mean?

 (1) RBI advances necessary credit against eligible        securities

 (2) Commercial Banks give fund to the RBI

 (3) RBI advances money to public whenever there is any       emergency

 (4) All of the above (5) None of the above

146. When RBI acts as a banker to the government, what   does it do?

 (1) RBl keeps bank accounts of the government

 (2) RBI carries out government transactions

 (3) RBI advises the government on all financial and        monetary matters

 (4) All of the above (5) None of the above

147. The merit of issuing notes with RBI can be seen is

 (1) uniformity   (2) stability in currency

 (3) control of credit (4) All of the above

 (5) None of the above

148. Which of the following is not an objective of financial   sector reform in India?

 (1) Creating an efficient, productive and profitable financial sector industry

 (2) Preparing the financial system for increasing international competition

 (3) Opening the external sector in a calibrated fashion

 (4) Reducing the fiscal deficit

 (5) Promote the maintenance of financial stability even in the face of domestic and
      external environment

149. The Narsimham Committee-I was set up in

 (1) 1990  (2) 1991  (3) 1992 

 (4) 1998 (5) 2000

150. The Narsimham Committee-I was set up to suggest   some recommendations for
      improvement in the 

 (1) efficiency and productivity of the financial institution 

 (2) banking reform process  (3) export of IT sector 

 (4) fiscal reform process (5) None of the above

151.  The Narsimham Committee-Il was set up to suggest   some recommendations for
     improvement in the

 (1) efficiency and productivity of the financial institution

 (2) banking reform process (3) export of IT sector

 (4) fiscal reform process (5) None of the above

152.  The Narsimham Committee, 1991 has given which 

       of the following major recommendations

 (i) Reduction in the SLR and CRR.

 (ii) Phasing out Directed Credit Programme.

 (iii) The determination of the interest rate should be on the grounds of market forces
     such as the demand for and the supply of fund.

 (iv) The actual numbers of public sector banks need to be reduced.

 (v) ‘Narrow Banking Concept’ where weak banks will be allowed to place their funds
     only in short-term and risk free assets.

 Select the correct answer using the following codes

 (1) i,ii and v (2) i, iii, iv and v  (3) i,ii,iii and v

 (4) ii, iii, iv and v (5) i, ii, iii and iv

153.  Which of the following is not correct about the    recommendations of
      Narsimham Committee Report,   1998?

 (1) Reduced CRR and SLR 

 (2) Deregulation of Interest Rate 

 (3) Establishment of the ARE Tribunal

 (4) Fixing Prudential Norms  (5) Capital Adequacy Norms

154.  Basel I, which was issued in 1988, focuses on the

 (1) capital adequacy of financial institutions

 (2) improvement of the banking sectors ability to deal with  financial and economic stress 

 (3) technology up gradation 

 (4) training of banking staff 

 (5) professionalism in banking

155.  In 1991, SLR was as high as

 (1) 25%  (2) 30%  (3) 38.5%

 (4) 39.5%  (5) 40%

156.  Narsimham Committee recommended to reduce   

       SLR and CRR to

 (1) 25% and 3.5% respectively

 (2) 24% and 3.5% respectively 

 (3) 25% and 3% respectively

 (4) 20% and 5% respectively 

 (5) 25% and 5% respectively

157. Which of the following is not a recommendation of   the Narsimham Committee, 1991?

 (1) Reduction of CRR and SLR

 (2) Phasing out directed credit programme 

 (3) Reduction of Capital Adequacy Ratio

 (4) Establishment of ARE Fund 

 (5) Autonomy to Public Sector Bank

158. Which of the following guidelines were issued by   Reserve Bank of India in
     January 1993 for the entry   of Private Sector Banks in the wake of Narasimham 
     Committee recommendation 

 (1) The new bank, upon being granted license under the Banking Regulation Act by RBI,
     Shall be registered as a public limited company under the Companies Act, 1956

 (2) Its inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 shall be
     sunject to Reserve  Bank’s decision

 (3) Preference would be given to those banks the  headquarters of which are proposed to be located in the      centre which does not have the headquarters of any other     bank

 (4) (1) and (3)   (5) All of these

159. The RBI has prescribed that a new Private Sector   Bank

 (1) shall be subject to prudential norms in regard to income    recognition, asset classification and provisioning, capital    adequacy, etc.

 (2) shall have to observe priority sector lending targets as    applicable to other domestic banks

 (3) will be required to open rural and semi-urban branches    also as may be laid down by RBI

 (4) None of the above (5) All of above

160.  A new Private Sector Bank

 (1) would be governed by existing branch licensing policy    where by banks could open branches including at urban/   metro centres without prior approval of RBI once capital    adequacy and prudential accounting norms were satisfied

 (2) will be governed by the provisions of the RBI Act, 1934    the Banking Regulation Act, 1949 and other relevant     statutes

 (3) would be subject to the directives, guidelines and advices    given by the Reserve Bank of India

 (4) None of the above  (5) All of the above

161.  To create a strong and competitive banking system,   reform measures were initiated in early 1990s. The   thrust of these reforms was on

 (1) increasing operation efficiency

 (2) strengthening supervision over banks

 (3) developing technological and  institutional infrastructure

 (4) All of the above  (5) None of the above

162.  What does EBT stands for?

 (1) Electronic Belated Transfer

 (2) Electric Beginners Transaction

 (3) Electronic Benefit Transfer

 (4) Electronic Beginning Transaction

 (5) None of the above

163.  On the recommendations of which of the following   committee Regional Rural Banks were established?

 (1) Tarpore Committee           (2) Narasimham Committee

 (3) Karmakar Committee       (4) Kelker Committee 

 (5) Jha Committee

164.  RRBs were set up on 

 (1) 1975  (2) 1985 (2) 1991 

 (4) 2001 (5) 1965 

165.  The total authorized capital of RRBs was originally   fixed at 1 crore which has since been raised to

 (1) Rs. 2crore (2) Rs. 3 crore (3) Rs. 5 crore

 (4) Rs. 7 crore  (5) Rs. 10 crore

166.  At present, the formula for subscription to RRBs 

        capital has been fixed at

 (1) Central Government 50%, State Government 35% and      Sponsor Bank 15%

 (2) Central Government 60%, State Government 20% and          Sponsor Bank 20%

 (3) Central Government 30%, State Government 30% and      Sponsor Bank 40%

 (4) Central Government 35%, State Government 35% and        Sponsor Bank: 30%

 (5) Central Government 50%, State Government 25% and            Sponsor Bank: 25%

167.  Central Government’s contribution towards the 

        capital of RRBs is made through

 (1) NABARD (2) RBI  (3) SBI

 (4) Central Cooperative Bank   (5) State Cooperative Bank

168.  The Sponsor Bank helps and aids the RRB sponsored   by it by

 (i) Subscribing to its share capital.

 (ii) Training its personnel.

 (iii) Providing managerial and financial assistance during the       first five years or extended period.

 Select the correct answer by using the following codes

 (1 )  i  and ii  (2) ii and iii   (3) i and ii  

 (4) i, ii, and iii  (5) None of these

169.  The Sponsor Banks are empowered

 (1) to monitor the progress of RRBs

 (2) to conduct inspection and internal audit 

 (3) to suggest corrective measures

 (4) All of the above  (5) None of the above

170.  Each of the RRBs covers districts ranging from

 (1) 1 to 15   (2) 2 to25 (3) 3 to 25 

 (4) 2 to 15 (5) 1 to 5 

171.  The main resources of RRBs are

 (1) share capital

 (2) deposits from the public 

 (3) borrowing from Sponsor Banks

 (4) refinance from NABARD  (5) All of the above

172.  RRBS are refinanced at 

 (1) 2% below the bank rate  (2) 1% below the bank rate  (3) 2% below the repo rate   (4) 1% below the repo rate

 (5) repo rate

173.  RRBs are owned by

 (1) Central Government         (2) State Government

 (3) Sponsor Bank                 (4) jointly by all of the above

 (5) None of the above

174. The main resources of RRBs are

 (i) share capital.               (ii) deposits from the public. 

 (iii) borrowing from Sponsor Banks. 

 (iv) refinance from NABARD.

       Select the correct answer

 (1) i and ii (2) i, ii and iii (3) iii and iv

 (4) ii, iii and iv  (5) i, ii, iii and iv

175. The number of directors on the boards of RRBs has   been raised to

 (1) 14  (2) 15      (3) 16     (4) 17   (5) 18

176.  The issued/paid-up capital of a Regional Rural Bank   should be

 (1) Rs. 60 lac

 (2) minimum Rs. 25 lac and maximum Rs. 100 lac

 (3) Rs. 80 lac (4) Rs. 90 lac (5) None of the above

177.  Under which category will Ofl classify Regional 

       Rural Banks?

 (1) Scheduled Commercial Banks 

 (2) Co-operative banks           (3) Private sector banks 

 (4) Development banks          (5) None of the above

178. Paid-up share capital of Region Rural Bank is    contributed by

 (1) Central Government only

 (2) State Government only

 (3) Central Government,  State Government and the sponsor      commercial bank in the ratio of 50: 15: 35 respectively

 (4) NABARD, the concerned Government and the sponsor      commercial bank in the ratio of 60:20 :20 respectively

 (5) All of the above

179.  Regional Rural Banks are empowered to transact 

      the business of banking as defined under

 (1) Banking Regulation Act, 1949

 (2) Negotiable Instruments Act, 1881

 (3) Regional Rural Banks Act, 1976

 (4) The Banking Companies (Acquisition and Transfer of      Undertakings) Act, 1970

 (5) None of the above

180.  RRBs are permitted to undertake corporate agency   business, without risk participation, for distribution   of all types of insurance products, including health   and animal insurance subject to the condition that

 (1) The bank should comply with the Insurance Regulatory      and Development Authority (IRDA) regulations for acting      as ‘composite corporate agent’

 (2) The bank should not adopt any restrictive practice of      forcing its customers to go in only for a particular        insurance company in respect of assets financed by       the bank

 (3) The risks, if any, involved in insurance agency should       not get transferred to the business of the bank

 (4) Only (2) and (3)   (5) All of the above

181. Regional Rural Banks are managed by

 (1) Reserve Bank of India      (2) a board of directors

 (3) the sponsor bank            (4) the State Government

 (5) All of the above

182. Deposits with Regional Rural Banks are insured by

 (1) Life Insurance Corporation of India

 (2) General Insurance Corporation

 (3) Deposit Insurance and Credit Guarantee Corporation

 (4) None of the above (5) All of the above

183. For opening a new branch, a Regional Rural Bank   requires

 (1) permission of NABARD

 (2) permission of Director, Institutional Finance

 (3) RBI license  (4) All of the above

 (5) approval of DRDA

184. Regional Rural Banks are classified as

 (1) scheduled commercial banks 

 (2) subsidiaries of the sponsor banks

 (3) subsidiaries of NABARD (4) All of the above

 (5) None of the above

 185.  For the purpose of Income Tax Act, 1961, the regional   rural banks are treated as

 (1) scheduled commercial banks

 (2) non-scheduled banks  (3) nationalised banks

 (4) co-operative banks  (5) None of the above

186. On the current account balances maintained by the   Regional Rural Banks with them, the commercial banks   may

 (1) pay interest up to 9 per cent

 (2) waive incidental charges

 (3) pay interest as applicable to savings accounts

 (4) pay interest at such rates as may be mutually agreed to

 (5) All of the above

187.  All regional rural banks (RRBs) are required to 

      maintain their entire statutory liquidity ratio (SLR) in

 (1) government and other approved securities

 (2) current accounts with sponsor banks

 (3) time deposits with sponsor banks

 (4) gold holdings only (5) All of the above

188. Which of the following statements about Regional   Rural Banks are correct?

 (1) Sponsor banks’ travellers cheques can be issued by RRBs

 (2) RRBs can enter into arrangements with the sponsor banks      for providing remittance facilities to its customers

 (3) Where RRBs can afford the investment, they can install      lockers also

 (4) Only (1) and (2) (5) All of the above

189.Reserve Bank has permitted RRBs for opening/

        maintaining Non-Residents (Ordinary /External) 

        accounts in rupees and for acceptance of FCNR (B) 

        deposits subject to the condition that

 (1) The bank should have a positive net-worth and earned      net profit during the preceding year

 (2) The bank should not have defaulted in maintenance of      CRR/SLR requirements on more than three occasions      during the preceding two years

 (3) Net NPA level of the bank should not exceed five per      cent of the outstanding advances as on March 31 of the      preceding year

 (4) Only (2) and (3) (5) All of the above

190. The Regulatory Authority Regional Rural Banks is

 (1) Sponsor bank  (2) Central Government

 (3) State Government (4) RB land NABARD

 (5) All of the above

191. Which of the following are the recommendations of   the Internal Group (Chairman : Shri A V Sardesai) set   up by RBI in regard to strengthening and viability of   RRBs? 

 (1) merger/amalgamation of RRBs to improve operational      viability

 (2) change of sponsor banks to enhance competitiveness.

 (3) governance and management and scope for improving     profitability

 (4) None of the above (5) All of the above

192. Which of the-following measure have been taken to   enlarge resources available to RRI3s?

 (1) Lines of credit at a reasonable rate of interest from       sponsor banks

 (2) Access to inter-RRB term money/ borrowings

 (3) Access to repo / CBLO markets

 (4) All of the above  (5) None of the above

193.  With a view to increase their resource base, RRBs 

       have been permitted to

 (1) issue of credit/debit cards and setting-up of ATMs

 (2) open Currency Chests

 (3) handle pension and other government business as sub-     agents of those banks which are authorised to conduct      government business

 (4) Only (1) and (2) (5) All of the above

194.  Which of the following conditions are required to be   fulfilled by a Regional Rural Bank to be eligible for   opening of new branches?

 (1) It should not have defaulted in maintenance of SLR and      CRR during the last two years

 (2) It should be making operational profits  

 (3) Its net worth should show improvement and its net NPA      ratio should not exceed 8 per cent

 (4) Only (1) and (2) (5) All of the above

195.  Co-operative Banks in India are registered under

 (i) Banking Laws (Cooperative Societies) Act, 1965.

 (ii) Banking Regulations Act, 1949. 

 (iii) Companies Act, 1956.

      Select the correct answer using the following codes

 (1) only i  (2) i and ii (3) ii and iii 

 (4) i, ii and iii (5) i, and iii

196.  Co-operative Development Bank was set up by

 (1) NABARD (2) RB! (3) SB! 

 (4) Central Government (5) None of the above

197.  Co-operative banks in India do not finance rural 

       areas under

 (1) Farming  (2) Cattle (3) Milk 

 (4)Small scale units (5) Personal finance

198.  Which of the following is not a negotiable 

        instrument?   (2) semi-negotiable instrument? 

 (1) Promissory note  (2) Bill of exchange 

 (3) Cheque (4) Bank Draft (5) Share certificate

199.  Those instruments which can be transferred by    endorsement and delivery, but the transferee does not   get a better title than that of the transferor is called

 (1) negotiable instruments

 (2) semi-negotiable instruments 

 (3) non-negotiable instruments

 (4) All of the above (5) None of the above

200.  Transfer of any instrument to another person by    signing on its back or face or on a slip of paper    attached to it is known as :

 (1) promissory note  (2) bill of lading

 (3) bill of exchange  (4) endorsement

 (5) None of the above

201.  Which of the following is not a prerequisite for a    promissory note?

 (1) drawn on a specified banker

 (2) It should be unconditional

 (3) It should be in writing

 (4) It should be made and signed by the debtor

 (5) It should be payable in the currency of the country

202.  A bill of exchange in which a bank orders its branch   or another bank, as the case may be, to pay a specified   amount to a specified person or to the order of the   specified person is called

 (1) cheque (2) bank draft (3) promissory note 

 (4) bill of exchange (5) None of the above

203.  Which of the following is not a party of bill of    exchange?

 (1) The Drawer (2) The Drawee (3) The Payee

 (4) The Endorser (5) None of the above

204.  Which of the following is/are the right(s) of customer   towards his banker?

 (1) To receive a statement of his account from a banker

 (2) To sue the bank for any loss and damages

 (3) To sue the banker for not maintaining the secrecy of his      account

 (4) All of the above (5) None of the above

205.  When an endorser waives presentment and notice   of dishonour he increases his liability. His     endorsement is:

 (1) facultative endorsement      (2) qualified endorsement

 (3) alternative endorsement      (4) restrictive endorsement

 (5) None of the above

206. All of the following are examples of Quasi Negotiable   Instruments, under the Negotiable Instrument Act,   1881, except

 (1) Dividend Warrants (2) Share Warrants

 (3) Bearer Debentures (4) Promissory Note

 (5) None of the above

207.  Section 131 of Negotiable Instrument Act, 1881 

        extends protection to the

 (1) Paying Banker (2) Collecting Banker

 (3) Advising Banker (4) Issuing Banker

 (5) All of the above

208.  Which of the following is not considered as 

    negotiable instrument under the Negotiable 

     Instruments Act, 1881?

 (1) Bill of exchange (2) Promissory note

 (3) Share certificate 

 (4) Cheque payable to bearer

 (5) Cheque with ‘not negotiable’ crossing

209. Which of the following is not considered as an    instrument negotiable by custom or usage?

 (1) Delivery orders for goods 

 (2) Railway receipts for goods

 (3) Hundi 

 (4) Government promissory notes  (5) Cheques

210. Under the Negotiable Instrument Act, 1881, an    instrument which is incomplete in some respects, is   called a/an

 (1) Foreign instrument            (2) Inland instrument 

 (3) Inchoate instrument          (4) Ambiguous instrument 

 (5) Fictitious instrument

211.  Which of the following is an example of ‘restrictive   crossing’?

 (1) Not Negotiable  (2) State Bank of India 

 (3) A/c Payee  (4) Company

 (5) Two transverse parallel lines simply drawn across the      face of the cheque

212.  Which of the following is not a payment in due 

        course?

 (1) Payment made in accordance with the apparent tenor of      the instrument

 (2) A payment is made on an instrument before the date of      maturity

 (3) Payment is made to a person who is in possession of      the instrument either as a holder or a person authorised      to receive payment on behalf of holder

 (4) Payment made in good faith and without negligence

 (5) Payment made to a person in possession of an instrument     payable to bearer or one that is, endorsed in blank

213. When a bill is drawn, accepted or indorsed for    consideration, it is called a/an

 (1) Accommodation bill             (2) Genuine trade bill 

 (3) Escrow                      (4) Ambiguous instrument 

 (5) Inchoate instrument

214.  Which of the following is a prerequisites for transfer   of a negotiable instrument?

 (1) Crossing  (2) Acceptance 

 (3) Noting with a Notary (4) Blank indorsement

 (5) Mere delivery or indorsement and delivery

215.  Which of the following statements is correct about   promissory note?

 (1) It need not be in writing

 (2) An implied promise is enough to constitute a valid       promissory note

 (3) The promise to pay must be definite and unconditional

 (4) The name of the pyee need not be mentioned

 (5) The payment can be in kind

216.  The legal relationship between a bank and its 

        customer is a kind of

 (i) Debtor and Creditor          (ii) Principal and Agent

 (iii) Pledgor and Pledgee      (iv) Mortgagor and Mortgagee

 Select the correct answer by using the following codes

 (1) i and ii (2) i, iii and iv (3) i, ii, iii and iv

 (4) i and ii (5) i, ii and iii

217.  Since, acceptance of deposits and granting of loans   are the two general functions of a bank, the          relationship arising out of these two main activities is   known as

 (1) principal and agent relationship

 (2) financer and finance relationship 

 (3) bailor and bailee relationship

 (4) general relationship     (5) specific relationship

218.  Which of the following is not an obligation of bank   towards its customer?

 (1) Pay bills as per the instructions of the customer

 (2) Act as per the directions given by the customer

 (3) Submit periodical statements, i.e., informing customers      of the state of the account

 (4) Not to set off a debt owed to him by a creditor from the      credit balances held in other accounts of the borrower

 (5) Maintain secrecy of accounts

219.  Which of the following statement is not correct    regarding a minor?

 (1) A minor is a person who has not attained the age of 18

 (2) Minor does not have legal capacity to enter into a contract

 (3) A current account in the name of minor can be opened      when guardian of the minor operates this account

 (4) A minor’s account should never be allowed to 

    be overdrawn

 (5) In the event of death of a minor, the money will be payable      to the guardian

220.  Money deposited with the bank becomes a debt due

 (1) from the banker (2) from the customer 

 (3) to the customer (4) Either 1 or 2

 (5) None of the above

221.  KYC means

 (1) Know your customer very well

 (2) Know your existing customer very well

 (3) Know your prospective customer very well

 (4) Satisfy yourselves about the customer’s identity and      activities

 (5) All of the above

222. Mahesh and Suresh are friends aged 14 and 15    respectively. They want to open a joint account in your   bank. You will

 (1) allow them to open a joint account to be operated jointly

 (2) allow them to open a joint account with operating        instructions either or survivor

 (3) allow them to open a joint account with operating        instructions former or survivor

 (4) allow them to open a joint account with operating        instructions any one or survivor

 (5) None of the above

223.  NABARD was set up as an apex Development Bank   with a mandate for facilitating credit flow for    promotion and development of

 (1) agriculture                    

 (2) small-scale industries

 (3) cottage and village industries

 (4) handicrafts and other rural crafts

 (5) All of the above

224.  On the recommendation of which committee 

       NABARD was established?

 (1) The Committee to Review Arrangements for Institutional       Credit for Agriculture and Rural Development

 (2) Narshimham Committee  (3) Chelliaha Committee

 (4) Kelkar Committee            (5) None of the above

225.  NABARD was set up with an initial capital of ‘Rs. 

     100 crore, which was enhanced to

 (1) Rs. 1,000 crore  (2) Rs. 2000 crore

 (3) Rs. 3000 crore  (4) Rs. 4000 crore (5) Rs. 5000 crore

226.  On the recommendations of which committee, the   NABARD was established?

 (1) Shivaraman Committee (2) Basel Norms 

 (3) Narasimham Committee  (4) All of the above 

 (5) None of the above

227.  Which of the following statements is not correct 

      about NBFCs?

 (1) An NBFC cannot accept demand deposits

 (2) These institutions trade in the capital market in a variety      of assets and liabilities

 (3) An NBFC can issue cheques drawn on itself

 (4) Deposit insurance facility of Deposit Insurance and Credit      Guarantee Corporation is not available for NBFC     depositors

 (5) NBFIs act as brokers of loanable funds and in this           capacity they intermediate between the ultimate saver       and the ultimate investor.

228.  The working and operations of  NBFCs are regulated   by

 (1) SEBI  (2) RBI          (3) Finance Ministry, Gol

 (4) IRDA (5) None of the above

229.  Which of the following is a kind of non-banking    financial institutions?

 (1) Equipment leasing company 

 (2) Hire purchase company (3) Loan company

 (4) Investment company  (5) All of the above

230.  Which of the following is not correct about the    acceptance of deposits by the NBFCs?

 (1) They are allowed to accept/renew public deposits for a      minimum period of 12 months and maximum period of     60 months

 (2) They cannot accept deposits repayable on demand

 (3) They should have minimum investment grade credit rating

 (4) Their deposits are not insured

(5) The repayment of deposits by NBFCs is guaranteed by      RBI

231.  Any financial intermediary whose principal business   is that of buying and selling of securities is called

 (1) equipment leasing company

 (2) hire purchase company (3) loan company

 (4) investment company (5) None of the above

232.  Life Insurance in its modern form came to India from   England in the year

 (1) 1818  (2) 1896  (3) 1905 

 (4) 1907 (5) 1919 

233.  Which of the following statements about insurance   business in India is not correct?

 (1) Oriental Life Insurance Company was the first life        insurance company on Indian Soil

 (2) Bombay Mutual Life Assurance Society was the first       Indian life insurance company

 (3) The Life Insurance Companies Act and the Provident       Fund Act were passed 1949

 (4) The Insurance Regulatory and Development Authority       was established in the year 1999

 (5) From March 21, 2003 GIC ceased to be a holding       company of its subsidiaries

234.  In which year had the Insurance Regulatory and    Development Authority come into force?

 (1) 1999  (2) 2000 (3) 2001 

 (4) 1991 (5) 1993

235.  By taking out insurance cover an individual

 (1) reduces the cost of an accident 

 (2) reduces the risk of an accident

 (3) transfers the risk to someone else 

 (4) converts the possibility of large loss to certainty of a      small one

 (5) reduces the certainty of major loss

236.  Which of the following is an example of NBFCs?

 (1) Unit Trust of India

 (2) Life Insurance Corporation

 (3) General Insurance Corporation 

 (4) All of the above (5) None of the above

237.  A company which pools money from investors and 

 invests in stocks, bonds, shares is called

 (1) A bank                    (2) An insurance company

 (3) Bank assurance               (4) Mutual fund

 (5) None of the above

238. Bank assurance is

 (1) an insurance scheme to insure bank deposits

 (2) an insurance scheme to insure bank advances

 (3) a composite financial service offering both bank and      insurance products

 (4) a bank deposit scheme exclusively for employees of      insurance companies

 (5) None of the above

239.  Which was the first mutual fund started in India?

 (1) SBI Mutual Fund             (2) Indian Bank Mutual Fund

 (3) Kotak Pioneer Mutual Fund 

 (4) Unit Trust of India  (5) None of the above

240. The regulator of mutual fund in India is

 (1) FIMMDA   (2) AMFI   (3) RBI   (4) SEBI (5) None of these

241. FIMMDA’s general principles and procedures are    applicable to

 (1) Fixed income markets (2) Money markets

 (3) Derivative markets (4) All of the above

 (5) None of the above

242. Which is the principal institution for promotion,    financing and development of small scale industries   in the country?

 (1) RBI  (2) SBI (3) IDBI  (4) SIDBI   (5) None of these

243. The UTI was established in 

 (1) 1956  (2) 1964   (3) 1972 

 (4) 1976 (5) None of these

244. Which of the following mobiise/s the savings of the   public to specifically invest in the industrial securities?

 (1) UTI  (2) LIC (3) GIC 

 (4) All of these (5) None of these

245. Whcih of the following is/are ‘Term Deposits’?

 (1) Fixed deposits                  (2) Re-investment deposits 

 (3) Recurring deposits            (4) None of the above 

 (5) All of the above

246. Which of the following is not correct about Non-   Banking Financial Companies (NBFCs)?

 (1) NBFC can not accept demand deposits

 (2) NBFC is not a part of the payment and settlement       system

 (3) NBFC can issue cheques drawn on itself

 (4) NBFCs are fast emerging segment of Indian financial      system

 (5) None of these

247. The working and operations of NBFCs are regulated   by 

 (1) SBl  (2) RBI (3) Finance Ministry 

 (4) All of these  (5) None of these

248.  Which of the following is not correct about 

 Development Banks in India?

 (1) The Development Banks do not seek or accept deposits       from the public

 (2) They provide short term finance

 (3) The Development Banks promote economic       development by promoting investment and enterprise

 (4) Development Banks are those banks engaged in the      promotion and development of industry, agriculture,     exports and other key sectors.

 (5) All of the above

249.  Which of the following is the first Development 

      Bankof India?

 (1) Industrial Finance Corporation of India

 (2) State Finance Corporation

 (3) Industrial Credit and Investment Corporation of India

 (4) State Industrial Development Corporations

 (5) National Bank for Agriculture and Rural Development

250.  The Small Industries Development Bank of India 

      was established in

 (1) 1975  (2) 1980 (3) 1982 

 (4) 1989 (5) 1990

251.  The erstwhile Industrial Reconstruction Bank of 

     India (IRBI) is now known as

 (1) Industrial Finance Corporation of India

 (2) Industrial Credit and Investment

 (3) Corporation of India Industrial Development Bank of      India

 (4) State Industrial Development Corporations

 (5) Industrial Investment Bank of India LTD

252.  National Housing Bank was established in

 (1) 1975  (2) 1980 (3) 1985 

 (4) 1988  (5) 1990

253.  Industrial Development Bank of India was            established as a subsidiary of

 (1) Reserve Bank of India

 (2) State Bank of India

 (3) Industrial Credit and Investment Corporation of India

 (4) State Industrial Development Corporations

 (5) Small Industries Development Corporation Bank of India      (SIDBI) was established in 1989

254.  Which of the following is not an objectives of SIDBI?

 (1) To initiate the process of modernisation and technical       upgradation of the present units

 (2) To facilitate the marketing of the products of the small       scale sector in India and abroad

 (3) to give loans both to the private as well as public sector      undertakings in the field of commodity production,       mining and services such as hotels and transport

 (4) to provide special aid to labour intensive industries to      enable them to provide more employment

 (5) To provide refinancing factoring, leasing services to the      small sector

255.  ‘Development Banks’ are

 (1) branches of Commercial Banks, whether in private or      public sector, situated in rural areas for upliftment of      weaker sections of the society

 (2) financial institutions which provide long term finance to      industries

 (3) land development banks which provide developmental      financing to agriculture

 (4) (2) and (3)  (5) None of the above

256.  SEBI was established in

 (1) 1993 (2) 1992 (3) 1988 

 (4) 1990 (5) 1994