Friday, September 30, 2011


1. Which of the following statements is true?
a) The licence to open branches of bank is granted by Board of Directors of that Bank
b) There is no need of licenses to open branch of a bank
c) A licence to open a branch is issued by the Central Government
d) A licence to open a branch is issued by the Reserve Bank of India under the provisions of Banking Regulation Act, 1949

2. The important condition for granting licence of banking companies is?

a) Banking company need not plan to pay for future depositors
b) Banking company can plan for its capital structure once the licence is granted
c) The business undertaken by the banking company should not frustrate the interest of public
d) The banking company can undertake business other than banking with the permission of annual general body

3. Who of the following is not a party to the IPO?

a) Registrar of Issue
b) Investment Banker
c) Advertisement Agency
d) Registrar of Companies

4. Which of the following is not shown as an asset in the balance sheet of a Bank?

a) Investments
b) Advances
c) Cash Balances with other banks
d) Borrowings

5. The credit policy of a bank does not consists of?

a) Lending policies
b) Quality control
c) Loan product mix
d) Advertising of loan products

6. Which of the following is a function of the agent bank relating to flow of money in the process of loan syndication?

a) Receiving notices relating to cancellation of any part of the loan
b) Calling of loans in the event of default
c) Receiving the fee from the borrower and distributing among the participating banks
d) Receiving notices relating to transfers of banks

7. Which of the following is the parameter to recognize the SSI unit as sick unit?

a) The erosion in the net-worth due to accumulated losses is up to 25% of its net worth during the previous account year
b) The erosion in the net-worth due to accumulated losses is up to 50% of its net worth during the previous account year.
c) The unit should have been in commercial production for at least five years
d) Lack of updations in technological development

8. Which of the following is not the service provided by the Small Industries Service Institute?

a) Providing entrepreneurship development programs
b) Developmental efforts
c) Export promotion and liaison activities
d) Financial support

9. Service Area Approach (SAA) is associated with?

a) Rural and Semi-urban branches of commercial banks
b) Urban branches of commercial banks
c) Branches of commercial banks situated in metro cities
d) Development banks

10. Which of the following cannot be securitized?

a) Future rentals of a fishing boat
b) Hire purchase receivables
c) Demand drafts received by the banker during clearing
d) Future billings for an airline

11. Which of the following statements is true?

a) The special purpose vehicle (SPV) purchases the assets from the borrower directly during the securitization
b) The originator and obligor are the same persons in securitization process
c) Administrator collects the payments due from the obligor and passes it to the SPV and follows with defaulters
d) Mortgage based securitization provides high yields to the investor

12. The important feature of an anticipatory letter of credit is that?
a) The letter of credit can be used as back- to- back letters of credit
b) The beneficiary under the letter of credit may receive payment even at the pre-shipment stage
c) The beneficiary under the letter of credit may receive payment even at the post-shipment stage
d) The cash advance is not permitted against such letter of credits

13. The Shipping guarantee is a?

a) Type of a letter of credit
b) Guarantee issued by the ship captain to the purchaser
c) Guarantee issued to the borrower towards the loan granted by the shipping company
d) Deferred payment guarantee issued by a banker at the request of the consignee when the documents are not received and goods are received, for facilitating the delivery of goods.

14. Which of the following statements is true?

a) The charge card is a credit instrument
b) Under this facility the cardholders need to pay amount within ten installments
c) Cardholder has to pay the 100% of the purchase amount within 30 days of purchase
d) The charge card shall have revolving credit

15. Which of the following is not augmented feature of a credit card?

a) Personal accident insurance
b) Cash withdrawals
c) Add-on facility
d) Issue of deferred guarantee

16. Which of the following is the disadvantage of going for public issue?

a) Liquidity to existing shares
b) Increase in visibility and reputation to the company
c) Better pricing and placement with new investors
d) Need to make continuous disclosures

17. Which of the following is not a criterion to select the Investment Bankers?

a) No professional memberships or incorporations are required
b) General reputation in the market
c) Good rapport with market intermediaries
d) Distribution net work of the organization

18. Which of the following is not an asset of a bank?

a) Notes and small coins
b) Overdue recurring deposits
c) Short term loans
d) Staff advances

19. The banking company has restriction to sanction loan to?

a) Directors of the bank
b) Staff working in the bank
c) Students going abroad
d) Professionals

20. Which of the following is a non-depository institution?

a) Credit unions
b) Commercial banks
c) Mutual funds
d) Regional rural banks

21. The disadvantage associated with leasing company is?

a) Low costs
b) Flexibility in payments
c) Eliminates the risk of obsolescence
d) High competitions because of entry to all financial institutions

22. Which of the following theory is associated with the financial system in the economic growth?

a) Retributive theory
b) Reformative theory
c) Financial repression theory
d) Jurisdictional theory

23.Which of the following is not a financial intermediary in the financial markets?

a) Pension funds
b) Credit unions
c) Life insurance companies
d) Small scale service institute.

24 Which of the following is not a function of a commercial bank?

a) Registration of charges and mortgages
b) Transactions services
c) Asset transaction
d) Real-time Gross Settlement

25. Which of the following is one of the three pillars of new Basel Capital Award?

a) Market competitions
b) Market rapport
c) Market discipline
d) International market relations

26. The interest in savings bank accounts of a bank is calculated on?

a) Minimum amount of balance that is maintained in the account in between 10th and the last day of month
b) Maximum amount of balance that is maintained in the account in between 10th and the last of month
c) Minimum amount of balance that is maintained in the account in between 1st and the last day of month
d) Maximum amount of balance that is maintained in the account in between 1st and the last of month

27. The credit policy of a bank does not deal with?

a) Credit risk management
b) Documentation standards
c) Review and renewal of advances
d) Outstanding balances in deposit accounts

28. Issuing credit cards is a component of ?

a) Corporate banking
b) Rural banking
c) Retail banking
d) Micro finance

29. The origin of bank instruments can be traced to?

a) The priests and worship places of public deposits
b) Goldsmith receipts
c) Bonds issued by the British Government in India
d) Bank notes issued by Bank of Venice

30. Which of the following is not the function of commercial banks?

a) Providing transaction services
b) Intermediation in financial services
c) Providing transformation services
d) Regulating the issue of bank notes.

31 Which of the following is the most important challenge before the commercial bank?

a) Maintenance of foreign currency
b) Evaluating the need of the customers
c) Maintenance of SLR and CRR
d) Meet the technological revolution

32. The asset's side of balance sheet consists of ?

a) Cash balances with other banks
b) Fixed deposits of customers
c) Savings deposits
d) Recurring deposits

33. Which of the following is an income for a bank?

a) Depreciation on bank's property
b) Interest on inter bank borrowings
c) Profit on revaluation of investments
d) Provisions made on account of write-offs

34. Saving Bank Account can be opened in the name of ?

a) State text book printing corporations
b) District level housing cooperative societies
c) Communist Party of India
d) Aravind Samuel, Anurag Deepak and Amarish Sugandhi Jointly

35. The interest on recurring deposit is paid on the basis of ?

a) Simple interest calculated monthly basis
b) Simple interest on monthly products basis
c) Quarterly compounding
d) Interest calculated on daily products basis

36. Which of the following statements is true?

i. Term deposits are non-transaction deposits
ii. Cheques can be issued on short-term deposits
iii. All term deposits are interest bearing deposits
a) (i) only
b) (ii) only
c) (iii) only
d) (i) and (iii)

37. The credit policy laid down by the top management of a bank does not deal with?

a) Credit risk management
b) Pricing of the credit products
c) Appraisal of time and demand deposits
d) Documentation standards.

38. Which of the following factors is not required to be considered to analyze the repayment capacity of a borrower?

a) Working capital management
b) Personal educational qualifications
c) Financial leverage
d) Interest rate risk management

39. Which of the following is a facilitating service of core loan products of retail banking services?

a) Current or savings accounts
b) Legal services for documentation
c) Delivery of loan at promised time period
d) Flexibility in prepayment of loan

40. Which of the following is an most important advantage of retail banking on the resource side?

a) Consumer loans are low risk products
b) Innovative product development and disbursal
c) Increases the subsidiary business of a bank
d) Requires less efforts to market retail loan products

41. Lenders may not provide trade-offs to the borrowers on the basic term of consumer installment credit relating to?

a) Interest rate
b) Maturity of the loan
c) Maturity of the deposit
d) Quantum of finance

42. Which of the following is the risk associated with the retail banking?

a) Strong recovery strategy
b) Definite lending limits
c) Effective credit process and proposals
d) Inadequate risk pricing

43 The advantage of consortium finance is?

i. Speedy transactions and individual approach
ii. Involvement of huge amounts
iii. Use of expertise of all the banks
a) (i) only
b) (ii) only
c) (iii) only
d) (i), (ii) and (iii)

44 Which of the following is not a function of the agent bank in loan syndication?

a) Ensuring the compliance of conditions precedent under the loan agreement
b) Determining the LIBOR interest rate for each interest rate
c) Planning for future syndication of loans
d) Receiving notices relating to cancellation of any part of the loan

45. Which of the following is not a phase/step in the formation of loan syndication?

a) Finalization of supply agreement
b) Identify the needs of the borrower
c) Preparation of information memorandum
d) Invite other banks to participate

46. Which of the following statements is true?

a) SSI is an undertaking in which the investments in fixed assets in plant and machinery does not exceed one million
b) Small and medium enterprises both in size and shape are not homogenous in nature
c) The small and medium enterprises contribution towards the GDP is nominal
d) Small and medium enterprises do not support the large industries.

47. The Nayak Committee has suggested the turnover method for assessing the working capital and pegged it at?

a) 15% of the projected annual turnover, as working capital limit
b) 20% of the projected annual turnover, as working capital limit
c) 25% of the projected annual turnover, as working capital limit
d) 30% of the projected annual turnover, as working capital limit

48. Which of the following is not a part of the rehabilitation package granted for revival of sick industry?

a) Waiver of penal interests
b) Funding by sanctioning of term loans towards the unpaid installments of loans
c) Grant of additional working capital loans
d) Not demanding the promoters contribution towards the rehabilitation package

49. Service Area Approach is associated with?

a) Industrial finance
b) Microfinance
c) Rural finance
d) Consortium finance

50. Which of the following resources cannot be securitized?

a) Credit balances outstanding in cash credit accounts
b) Credit Card receivables
c) Hire purchase receivable
d) Mortgage in lieu of future payments

51. Which of the following is a type of anticipatory letter of credit?

a) Green clause letter of credit
b) Yellow clause letter of credit
c) Back to back letters of credit
d) Revolving letter of credit

52. Performance guarantee is issued?

a) In lieu of earnest money
b) In lieu of retention money
c) In lieu of indemnity bonds
d) For successful competition of Turnkey projects

53. Which of the following is not a transfer of funds by using the electronic media?

a) Mail transfer of funds
b) Telegraphic transfer of funds
c) Electronic credit transfers
d) Electronic clearing transfers

54. Which of the following is not an augmenting feature of credit cards?

a) Personal accident insurance
b) Cash withdrawal facility
c) Add-On facility
d) Automatic recovery of interest on term loans

55 Which of the following is a disadvantage of going public issue?

a) Provides liquidity to existing shares
b) Commands better pricing than placement with few investors
c) Increased regulatory norms
d) Enables valuation of the company

56 Which of the following is not a reason for regulating the banking operations?

a) Banks hold a major portion of the public savings
b) Banks intermediate between the savings and investments
c) Banks hold a large part of the money supply
d) Banks earn profit from non-fund services

57. Which of the following statements is true?

a) Resave Bank of India empowers the banks to open branches according to their will and pleasure
b) Reserve Bank of India is a central bank which monitors only lending activities pertaining to export credit
c) Banks have authority to establish the ATMs at their convenience
d) Rural banks of commercial banks do not have freedom to issue credit cards

58. When the customer withdraws cash from ATM, the banker and customer relation ship is?

a) Debtor and Creditor
b) Creditor and Debtor
c) Lessor and Lessee
d) Agent and principal

59. Which of the following is a public sector Bank?


60. Trade control in India is regulated by?

a) RBI
c) EXIM Bank

61 Which of the following businesses is prohibited as per Sec 8 of B.R Act 1949?

a) Executing the trusts
b) Leasing
c) Retail trading
d) Underwriting

62. Which of the following is not one of the essential elements of internal audit?

a) Totality
b) Expertise
c) Independence
d) Subjectivity

63. The letter of credit, which facilitates the exporter to get pre- shipment finance (from the stage of purchase of raw material until the warehousing of the finished goods) from advising bank is called?

a) Red Clause LC
b) Lines of credit
c) Packing credit loan
d) Green Clause LC

64. A term loan is classified as a non-performing asset, if interest or installment is overdue for period exceeding how many days?

a) 90
b) 91
c) 180
d) 182

65. Which of the following is an interest bearing demand deposit?

a) Time Deposit
b) Re-investment deposits
c) Cash Certificates
d) Savings Bank account

66. Debt Recovery Tribunals accept petitions from Banks and financial institutions, only when the amount of suit is for Rs?

a) 1 00 000 and above
b) 5 00 000 and above
c) 7 50 000 and above
d) 10 00 000 and above

67. An endorsement is deemed as an instruction to?

a) Collecting Bank
b) Paying Bank
c) Drawer
d) Payee

68. Ideal Credit deposit ratio for a bank is?

a) 60%
b) 40%
c) 90%
d) 30%

69. The rate at which RBI rediscounts the bills of commercial banks is called as?

a) Bank Rate
b) Prime Lending rate
c) Repo rate

70. Which of the following is not one of the RBI directives on clean note policy?

a) Currency note packets are not to be stapled and secured with paper bands
b) Soiled notes are to be stapled before they are remitted to Currency Chest.
c) Water mark window of bank notes shall not contain any writings
d) Currency notes are to be sorted in to Issuable and non-issuable notes.

71. Which of the following committees are related to 'Micro financing'?

a) Nayak Committee
b) Tandon committee
c) Vyas Committee
d) Narasimham committee

72. The relation ship between RBI and the Bank maintaining the currency chest is that of?

a) Debtor and Creditor
b) Principal and Agent
c) Bailor and Bailee
d) Creditor and Debtor

73. Normally, the number of members in a self Help Group shall not exceed?

a) 10
b) 20
c) 50
d) 15

74. Short fall in fulfilling the targets of Priority sector and agricultural finance by domestic commercial banks shall be deposited with/in?

c) RBI

75. The maturity value of a Recurring deposit with a monthly contribution of Rs 500 kept for a period of 12 months, at 9% interest rate compounded quarterly would be Rs.?

a) 6, 265
b) 6, 625
c) 7, 255
d) 7, 555

76. Which of the following is not an imperfect note?

a) Washed note
b) Bleached note
c) Mutilated note
d) Oiled note

77. Credit rating helps in measuring the credit risk and facilitates?

a) Considering higher credit limits
b) Making loan provisioning at an early stage
c) Accurately calculate the probable loan losses
d) Pricing of a loan

78. The Reverse Repo has the following characteristic?

a) Borrowing by RBI from banks
b) Borrowing with government security as collateral
c) Short term borrowing
d) All of these

79. Under the Nayak Committee recommendations, the quantum of working capital limits from the bank is minimum percentage of the projected annual sales?

a) 5%
b) 15%
c) 20%
d) 25%

80. Banks insist on providing finance for those projects or activities only which they consider to be viable. What is meant by viability of project?

a) Capacity to generate cash, adequate to service debt and surplus for borrower's personal requirement.
b) Generation of cash to meet debt liability
c) Generation of profits.
d) Generation of gross profits

81. Letter of negative lien obtained from borrower by a bank contains?

a) An undertaking that the property mortgaged to the bank is his own
b) A confirmation that the borrower had earlier deposited title deeds to create mortgage on the property.
c) An undertaking not to create any encumbrance/lien on the property which he owns but not yet mortgaged to the bank
d) A declaration that he is the joint owner of the property furnishing the details of his share and valuation thereof.

82. Which of the following statement is CORRECT?

a) Consortium advances to be treated as NPA on the basis of recovery by individual banks
b) If one facility of a borrower is treated as NPA other facilities to him also to be treated as NPA even if there are no irregularities in that account.
c) Consortium must be formed if the total exposure of fund based limit exceeds Rs 100 crore.
d) Both (a) and (b)

83. If an IPO is under-priced, which of the following can be considered as consequences/implications of the same?

I. The company looses the opportunity to raise more funds
II. Under pricing would give less returns to the investor
III. Under pricing results in lower net worth on an increased equity.
a) Only (II) above
b) Only (III) above
c) Both (I) and (III) above
d) Both (II) and (III) above all.

84. Corporate Bank files suit for recovery of its loan against the guarantor only and not the borrower. Guarantor pleads in the court that before filing suit against him, money should be recovered from the borrower. In such circumstances, the bank can seek recourse in the court against?

a) All the liable parties together only
b) Any one of them at a time
c) All separately
d) At its discretion it can proceed against any one

85. A letter of credit (LC) wherein the credit available to the customer gets reinstated after the bill is paid is known as?

a) Back to back LC
b) Red clause LC
c) Back to front LC
d) Revolving LC

86. Regional Rural Banks are?

a) Private Sector scheduled commercial banks
b) Cooperative banks
c) Foreign banks
d) Public sector scheduled commercial banks

87. Large corporate customers demand?

a) Short term products from their banks irrespective of the cost at their times of need.
b) Increasingly sophisticated products from their banks at the lowest possible cost.
c) Disintegrated financial products from their banks at the lowest possible cost.
d) Basic banking products from their banks but with speed and efficiency.

88. Funded Services under corporate banking does not include?

a) Working Capital Finance
b) Bill Discounting
c) Export Credit
d) Letters of Credit

89. Which of the following is not directly involved in rural lending?

a) Cooperatives
b) RRBs
c) Commercial banks

90. PACSs provide?

a) Mainly long term credit
b) Mainly short term credit
c) Both long term and short term credit
d) Do not provide any credit

91. The purpose of which is to make credit of available to essential sectors of the economy according to national priorities?

a) Selective Credit Control (SCC)
b) Maintenance of cash reserve
c) Reserve fund
d) Comprehensive Credit Control

92. The system of note issue followed by the RBI is?

a) Proportional reserve system
b) Minimum reserve system
c) Minimum fiduciary system
d) Maximum fiduciary system

93. The rate at which the Reserve Bank of India lends to the commercial banks in very short term against the backing of the Government securities is known as?

a) Bank rate
b) Repo rate
c) Reverse Repo
d) Discount rate

94. Scheduled banks are those?

a) Includued in the 2nd schedule of the Banking Regulation Act-1949
b) Includued in the 2nd schedule of the Companies Act-1956
c) Includued in the 2nd schedule of the Reserve Bank of India Act -1934
d) Bank Nationalization Act -1969

95. The following is classified as a public sector bank?

a) ICICI Bank
b) IDBI Bank Ltd
c) Axis Bank
d) Local area bank

96. The banker-customer relationship in credit card payment is?

a) Creditor-debtor
b) Debtor-creditor
c) Agent principal
d) Principal-agent

97. The base rate is set by?

a) Individual banks
b) RBI
c) Government of India
d)RBI in consultation with Government

98. State Bank of India's new floating rate of deposit is directly linked to?

a) Inflation Rate
c) Base Rate
d) BankRate

99. Six private sector banks were nationalised on April 15, 1980, whose reserves were more than?

a) 100 Crores
b) Rs. 200 crores
c) 300 crores
d) 400 crores

100. Security printing press was established in 1982 at?

a) Kolkata
b) New Delhi
c) Bombay
d) Hyderabad


1) d      2) c  3) d     4) d        5) d   6) c    7) b   8) d    9) a  10) c

11) c 12) b 13) d 14) c 15) d 16) d 17) a 18) b 19) a 20) c
21) d 22) c 23) d 24) a 25) c 26) a 27) d 28) c 29) b 30) d
31) d 32) a 33) c 34) d 35) c 36) d 37) c 38) b 39) a 40) c
41) c 42) d 43) d 44) c 45) a 46) b 47) b 48) d 49) c 50) a
51) a 52) d 53) a 54) d 55) c 56) d 57) c 58) a 59) a 60) d
61) c 62) d 63) d 64) a 65) d 66) d 67) b 68) a 69) a 70) b
71) c 72) b 73) b 74) a 75) a 76) c 77) d 78) d 79) c 80) a
81) c 82) a 83) c 84) d 85) d 86) d 87) b 88) d 89) d 90) b
91) a 92) b 93) b 94) c 95) b 96) b 97) a 98) c 99) b 100) d

Tuesday, September 27, 2011



  •  Accrued interest: Interest due from issue date or from the last coupon payment date to the settlement date. Accrued interest on bonds must be added to their purchase price.
  • Arbitrage: Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market.
  • Ask Price: The lowest price at which a dealer is willing to sell a given security.
  • Asset-Backed Securities (ABS): A type of security that is backed by a pool of bank loans, leases, and other assets. Most ABS are backed by auto loans and credit cards – these issues are very similar to mortgage-backed securities.
  • At-the-money: The exercise price of a derivative that is closest to the market price of the underlying instrument.
  • Basis Point: One hundredth of 1%. A measure normally used in the statement of interest rate e.g., a change from 5.75% to 5.81% is a change of 6 basis points.
  • Bear Markets: Unfavorable markets associated with falling prices and investor pessimism.
  • Bid-ask Spread: The difference between a dealer’s bid and ask price.
  • Bid Price: The highest price offered by a dealer to purchase a given security.
  • Blue Chips: Blue chips are unsurpassed in quality and have a long and stable record of earnings and dividends. They are issued by large and well-established firms that have impeccable financial credentials.
  • Bond: Publicly traded long-term debt securities, issued by corporations and governments, whereby the issuer agrees to pay a fixed amount of interest over a specified period of time and to repay a fixed amount of principal at maturity.
  • Book Value: The amount of stockholders’ equity in a firm equals the amount of the firm’s assets minus the firm’s liabilities and preferred stock
  • Broker: Individuals licensed by stock exchanges to enable investors to buy and sell securities.
  • Brokerage Fee: The commission charged by a broker.
  • Bull Markets: Favorable markets associated with rising prices and investor optimism.
  • Call Option: The right to buy the underlying securities at a specified exercise price on or before a specified expiration date.
  • Callable Bonds: Bonds that give the issuer the right to redeem the bonds before their stated maturity.
  • Capital Gain: The amount by which the proceeds from the sale of a capital asset exceed its original purchase price.
  • Capital Markets: The market in which long-term securities such as stocks and bonds are bought and sold.
  • Certificate of Deposits (CDs): Savings instrument in which funds must remain on deposit for a specified period, and premature withdrawals incur interest penalties.
  • Closed-end (Mutual) Fund: A fund with a fixed number of shares issued, and all trading is done between investors in the open market. The share prices are determined by market prices instead of their net asset value.
  • Collateral: A specific asset pledged against possible default on a bond. Mortgage bonds are backed by claims on property. Collateral trusts bonds are backed by claims on other securities. Equipment obligation bonds are backed by claims on equipment.
  • Commercial Paper: Short-term and unsecured promissory notes issued by corporations with very high credit standings.
  • Common Stock: Equity investment representing ownership in a corporation; each share represents a fractional ownership interest in the firm.
  • Compound Interest: Interest paid not only on the initial deposit but also on any interest accumulated from one period to the next.
  • Contract Note: A note which must accompany every security transaction which contains information such as the dealer’s name (whether he is acting as principal or agent) and the date of contract.
  • Controlling Shareholder: Any person who is, or group of persons who together are, entitled to exercise or control the exercise of a certain amount of shares in a company at a level (which differs by jurisdiction) that triggers a mandatory general offer, or more of the voting power at general meetings of the issuer, or who is or are in a position to control the composition of a majority of the board of directors of the issuer.
  • Convertible Bond: A bond with an option, allowing the bondholder to exchange the bond for a specified number of shares of common stock in the firm. A conversion price is the specified value of the shares for which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the conversion price.
  • Corporate Bond: Long-term debt issued by private corporations.
  • Coupon: The feature on a bond that defines the amount of annual interest income.
  • Coupon Frequency: The number of coupon payments per year.
  • Coupon Rate: The annual rate of interest on the bond’s face value that a bond’s issuer promises to pay the bondholder. It is the bond’s interest payment per dollar of par value.
  • Covered Warrants: Derivative call warrants on shares which have been separately deposited by the issuer so that they are available for delivery upon exercise.
  • Credit Rating: An assessment of the likelihood of an individual or business being able to meet its financial obligations. Credit ratings are provided by credit agencies or rating agencies to verify the financial strength of the issuer for investors.
  • Currency Board: A monetary system in which the monetary base is fully backed by foreign reserves. Any changes in the size of the monetary base has to be fully matched by corresponding changes in the foreign reserves.
  • Current Yield: A return measure that indicates the amount of current income a bond provides relative to its market price. It is shown as: Coupon Rate divided by Price multiplied by 100%.
  • Custody of Securities: Registration of securities in the name of the person to whom a bank is accountable, or in the name of the bank’s nominee; plus deposition of securities in a designated account with the bank’s bankers or with any other institution providing custodial services.
  • Default Risk: The possibility that a bond issuer will default ie, fail to repay principal and interest in a timely manner.
  • Derivative Call (Put) Warrants: Warrants issued by a third party which grant the holder the right to buy (sell) the shares of a listed company at a specified price.
  • Derivative Instrument: Financial instrument whose value depends on the value of another asset.
  • Discount Bond: A bond selling below par, as interest in-lieu to the bondholders.
  • Diversification: The inclusion of a number of different investment vehicles in a portfolio in order to increase returns or be exposed to less risk.
  • Duration: A measure of bond price volatility, it captures both price and reinvestment risks to indicate how a bond will react to different interest rate environments.
  • Earnings: The total profits of a company after taxation and interest.
  • Earnings per Share (EPS): The amount of annual earnings available to common stockholders as stated on a per share basis.
  • Earnings Yield: The ratio of earnings to price (E/P). The reciprocal is price earnings ratio (P/E).
  • Equity: Ownership of the company in the form of shares of common stock.
  • Equity Call Warrants: Warrants issued by a company which give the holder the right to acquire new shares in that company at a specified price and for a specified period of time.
  • Ex-dividend (XD): A security which no longer carries the right to the most recently declared dividend or the period of time between the announcement of the dividend and the payment (usually two days before the record date). For transactions during the ex-dividend period, the seller will receive the dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the stock’s or unit trust’s name.
  • Face Value/ Nominal Value: The value of a financial instrument as stated on the instrument. Interest is calculated on face/nominal value.
  • Fixed-income Securities: Investment vehicles that offer a fixed periodic return.
  • Fixed Rate Bonds: Bonds bearing fixed interest payments until maturity date.
  • Floating Rate Bonds: Bonds bearing interest payments that are tied to current interest rates.
  • Fundamental Analysis: Research to predict stock value that focuses on such determinants as earnings and dividends prospects, expectations for future interest rates and risk evaluation of the firm.
  • Future Value: The amount to which a current deposit will grow over a period of time when it is placed in an account paying compound interest.
  • Future Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will grow over a period of time when it is placed in an account paying compound interest.
  • Futures Contract: A commitment to deliver a certain amount of some specified item at some specified date in the future.
  • Hedge: A combination of two or more securities into a single investment position for the purpose of reducing or eliminating risk.
  • Income: The amount of money an individual receives in a particular time period.
  • Index Fund: A mutual fund that holds shares in proportion to their representation in a market index, such as the S&P 500.
  • Initial Public Offering (IPO): An event where a company sells its shares to the public for the first time. The company can be referred to as an IPO for a period of time after the event.
  • Inside Information: Non-public knowledge about a company possessed by its officers, major owners, or other individuals with privileged access to information.
  • Insider Trading: The illegal use of non-public information about a company to make profitable securities transactions
  • Intrinsic Value: The difference of the exercise price over the market price of the underlying asset.
  • Investment: A vehicle for funds expected to increase its value and/or generate positive returns.
  • Investment Adviser: A person who carries on a business which provides investment advice with respect to securities and is registered with the relevant regulator as an investment adviser.
  • IPO price: The price of share set before being traded on the stock exchange. Once the company has gone Initial Public Offering, the stock price is determined by supply and demand.
  • Junk Bond: High-risk securities that have received low ratings (i.e. Standard & Poor’s BBB rating or below; or Moody’s BBB rating or below) and as such, produce high yields, so long as they do not go into default.
  • Leverage Ratio: Financial ratios that measure the amount of debt being used to support operations and the ability of the firm to service its debt.
  • Libor: The London Interbank Offered Rate (or LIBOR) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). The LIBOR rate is published daily by the British Banker’s Association and will be slightly higher than the London Interbank Bid Rate (LIBID), the rate at which banks are prepared to accept deposits.
  • Limit Order: An order to buy (sell) securities which specifies the highest (lowest) price at which the order is to be transacted.
  • Limited Company: The passive investors in a partnership, who supply most of the capital and have liability limited to the amount of their capital contributions.
  • Liquidity: The ability to convert an investment into cash quickly and with little or no loss in value.
  • Listing: Quotation of the Initial Public Offering company’s shares on the stock exchange for public trading.
  • Listing Date: The date on which Initial Public Offering stocks are first traded on the stock exchange by the public
  • Margin Call: A notice to a client that it must provide money to satisfy a minimum margin requirement set by an Exchange or by a bank / broking firm.
  • Market Capitalization: The product of the number of the company’s outstanding ordinary shares and the market price of each share.
  • Market Maker: A dealer who maintains an inventory in one or more stocks and undertakes to make continuous two-sided quotes.
  • Market Order: An order to buy or an order to sell securities which is to be executed at the prevailing market price.
  • Money Market: Market in which short-term securities are bought and sold.
  • Mutual Fund: A company that invests in and professionally manages a diversified portfolio of securities and sells shares of the portfolio to investors.
  • Net Asset Value: The underlying value of a share of stock in a particular mutual fund; also used with preferred stock.
  • Offer for Sale: An offer to the public by, or on behalf of, the holders of securities already in issue.
  • Offer for Subscription: The offer of new securities to the public by the issuer or by someone on behalf of the issuer.
  • Open-end (Mutual) Fund: There is no limit to the number of shares the fund can issue. The fund issues new shares of stock and fills the purchase order with those new shares. Investors buy their shares from, and sell them back to, the mutual fund itself. The share prices are determined by their net asset value.
  • Open Offer: An offer to current holders of securities to subscribe for securities whether or not in proportion to their existing holdings.
  • Option: A security that gives the holder the right to buy or sell a certain amount of an underlying financial asset at a specified price for a specified period of time.
  • Oversubscribed: When an Initial Public Offering has more applications than actual shares available. Investors will often apply for more shares than required in anticipation of only receiving a fraction of the requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an indication of the public’s perception of the business potential of the IPO company.
  • Par Bond: A bond selling at par (i.e. at its face value).
  • Par Value: The face value of a security.
  • Perpetual Bonds: Bonds which have no maturity date.
  • Placing: Obtaining subscriptions for, or the sale of, primary market, where the new securities of issuing companies are initially sold.
  • Portfolio: A collection of investment vehicles assembled to meet one or more investment goals.
  • Preference Shares: A corporate security that pays a fixed dividend each period. It is senior to ordinary shares but junior to bonds in its claims on corporate income and assets in case of bankruptcy.
  • Premium (Warrants): The difference of the market price of a warrant over its intrinsic value.
  • Premium Bond: Bond selling above par.
  • Present Value: The amount to which a future deposit will discount back to present when it is depreciated in an account paying compound interest.
  • Present Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will discount back to present when it is depreciated in an account paying compound interest.
  • Price/Earnings Ratio (P/E): The measure to determine how the market is pricing the company’s common stock. The price/earnings (P/E) ratio relates the company’s earnings per share (EPS) to the market price of its stock.
  • Privatization: The sale of government-owned equity in nationalized industry or other commercial enterprises to private investors.
  • Prospectus: A detailed report published by the Initial Public Offering company, which includes all terms and conditions, application procedures, IPO prices etc, for the IPO
  • Put Option: The right to sell the underlying securities at a specified exercise price on of before a specified expiration date.
  • Rate of Return: A percentage showing the amount of investment gain or loss against the initial investment.
  • Real Interest Rate: The net interest rate over the inflation rate. The growth rate of purchasing power derived from an investment.
  • Redemption Value: The value of a bond when redeemed.
  • Reinvestment Value: The rate at which an investor assumes interest payments made on a bond which can be reinvested over the life of that security.
  • Relative Strength Index (RSI): A stock’s price that changes over a period of time relative to that of a market index such as the Standard & Poor’s 500, usually measured on a scale from 1 to 100, 1 being the worst and 100 being the best.
  • Repurchase Agreement: An arrangement in which a security is sold and later bought back at an agreed price and time.
  • Resistance Level: A price at which sellers consistently outnumber buyers, preventing further price rises.
  • Return: Amount of investment gain or loss.
  • Rights Issue: An offer by way of rights to current holders of securities that allows them to subscribe for securities in proportion to their existing holdings.
  • Risk-Averse, Risk-Neutral, Risk-Taking:
    Risk-averse describes an investor who requires greater return in exchange for greater risk.
    Risk-neutral describes an investor who does not require greater return in exchange for greater risk.
    Risk-taking describes an investor who will accept a lower return in exchange for greater risk.
  • Senior Bond: A bond that has priority over other bonds in claiming assets and dividends.
  • Short Hedge: A transaction that protects the value of an asset held by taking a short position in a futures contract.
  • Settlement: Conclusion of a securities transaction when a customer pays a broker/dealer for securities purchased or delivered, securities sold, and receives from the broker the proceeds of a sale.
  • Short Position: Investors sell securities in the hope that they will decrease in value and can be bought at a later date for profit.
  • Short Selling: The sale of borrowed securities, their eventual repurchase by the short seller at a lower price and their return to the lender.
  • Speculation: The process of buying investment vehicles in which the future value and level of expected earnings are highly uncertain.
  • Stock Splits: Wholesale changes in the number of shares. For example, a two for one split doubles the number of shares but does not change the share capital.
  • Subordinated Bond: An issue that ranks after secured debt, debenture, and other bonds, and after some general creditors in its claim on assets and earnings. Owners of this kind of bond stand last in line among creditors, but before equity holders, when an issuer fails financially.
  • Substantial Shareholder: A person acquires an interest in relevant share capital equal to, or exceeding, 10% of the share capital.
  • Support Level: A price at which buyers consistently outnumber sellers, preventing further price falls.
  • Technical Analysis: A method of evaluating securities by relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Contrasted with fundamental analysis which involves the study of financial accounts and other information about the company. (It is an attempt to predict movements in security prices from their trading volume history.)
  • Time Horizon: The duration of time an investment is intended for.
  • Trading Rules: Stipulation of parameters for opening and intra-day quotations, permissible spreads according to the prices of securities available for trading and board lot sizes for each security.
  • Trust Deed: A formal document that creates a trust. It states the purpose and terms of the name of the trustees and beneficiaries.
  • Underlying Security: The security subject to being purchased or sold upon exercise of the option contract.
  • Valuation: Process by which an investor determines the worth of a security using risk and return concept.
  • Warrant: An option for a longer period of time giving the buyer the right to buy a number of shares of common stock in company at a specified price for a specified period of time.
  • Window Dressing: Financial adjustments made solely for the purpose of accounting presentation, normally at the time of auditing of company accounts.
  • Yield (Internal rate of Return): The compound annual rate of return earned by an investment
  • Yield to Maturity: The rate of return yield by a bond held to maturity when both compound interest payments and the investor’s capital gain or loss on the security are taken into account.
  • Zero Coupon Bond: A bond with no coupon that is sold at a deep discount from par value.

Monday, September 26, 2011


A candidate sent questions asked in descriptive paper in CWE P.O.  2nd shift.
(Exam held on 18-09-2011) 

1 Write a letter to your brother infoming him Importace of  Lokpal Bill .
2 wrire a letter to related authority informing him water shortage in your area
3 Write a letter to editor of newspaer for starting a series of cultural heritage in your state .

1 e-banking
2 emerging trends of Aviation Industry in India
3 Global world converting into global Village

Precis was relating to land acquisition and urbanisation


Human Resource Management Department, Head Office
10, B. T. M. Sarani, Kolkata-700 001.

UCO Bank a leading listed Public Sector Bank invites ON-LINE applications for the following Specialist Officers posts.
    1. Security Officer : 22 Posts (JMGS-I - 07, MMGS-II - 15)
    2. Law Officer : 11 Posts (MMGS-II - 02, MMGS-III - 09)
    3. IT Officer : 94 Posts (JMGS-I)

Pay Scales : JMGS-I: Rs. 14500-25700 , MMGS-II: Rs. 19400- 28100 , MMGS-III: Rs. 25700- 31500

Closing Date for Online Registration : 17.10.2011
Last Date for Receipt of Print-out of the registered Application : 21.10.2011
Last Date for Receipt of Print-out of the registered Application (from far flung areas) : 01.11.2011
  • Application Fee : Rs.450/- (Application Fees plus postage charges) (For SC/ ST Rs.50/- (postage charges only) )

  •     Eligible candidates are required to apply only ONLINE through our website between 26.09.2011 and 17.10.2011 . Candidates are required to have a valid personal e-mail ID and Mobile Number for apply online.

    For Further Detail ,Online Registration Please Visit

    Thursday, September 22, 2011


    KARUR VYSYA BANK (KVB) has invited the application from Indian citizens for the recruitment of Clerk posts

    Name of the Post: Clerk


    • 2nd Class Bachelor’s degree in any disciplines with 50% and above
    • Candidates having degree of Open University / Correspondence are not eligible for the above post
    • Diploma in Computer application of 3 months from a reputed Institute

    Age Limit

    Age of the candidates should not be more that 28 years for Graduate degree holders and 30 years for PG / Double Graduate as on 31/08/2011. Age of the candidates, who belong to SC / ST Category, will be relaxed upto 5 years.

    Selection Procedure:

    Candidates who fulfill the eligibility criteria and received their application will be called for written test (objective type) which will be held at the selected centres in all over India. Qualified candidates in the written test will be called for Personal Interview. Well, Final Selection of the candidates will be made on the basis of performance in Written Exam and Personal Interview:

    Application Fee:

    Rs.350 (Rs.100 for SC / ST Candidates) in the shape of Demand Draft in favour of “The Karur Vysya Bank Limited” and Payable at Chennai. Candidates are advised to write their Full Name, City, Date of Birth application ID on the back side of the Demand Draft.

    How to apply:

    1. Candidates are required to go to this link for applying online
    2. Click on “New User Register Here” link and follow the instructions
    3. Candidates need to Register themselves before applying, put the User Name, Password and date of birth in the box and click on submit, a new user name and password will be created
    4. Then log in with same User id and Password and create an online Resume
    5. After these all process, candidates need to send their Demand Draft with the online Resume and Caste certificate (if any) to the following address given below
    6.  Call letter for the written exam will be sent to the candidates through email only.

    Sending Address:

    Demand draft with document letter attached in the website must reach “The Karur Vysya Bank Limited, Central Office – HRD, Erode Road, Karur – 639002” Tamilnadu” on or before 04/10/2011.

    Click Here For More Details:
    Official Website:

    Wednesday, September 21, 2011


    THE SHAMRAO VITHAL CO-OPERATIVE BANK LTD, third largest co-operative bank in the country, Zonal Offices in Pune and Kolhapur by appointing personnel for the following positions:

    (for Pune & Kolhapur Zone)
    Candidate should be a graduate in any faculty. Professional qualification such as C.A., C.S., I.C.W.A., M.B.A., will be preferred. He / she should be ideally between 30 – 35 years of age with minimum experience of 6 years in banking, of which at least 3 years as Officer / Assistant Manager in any reputed Commercial / Co-op Bank, with a major thrust on Credit.

    (for Kolhapur Zone)
    Candidate should possess 1st Class / 2nd Class Degree / Diploma in Mechanical / Civil / Electrical /
    Chemical Engineering. He / she should be ideally between 30 – 35 years of age with minimum experience
    of 3 years for Degree holders and 5 years for Diploma holders in any Industrial undertaking / bank /
    Financial Institution.

    Age limit may be relaxed at the discretion of the Management.
    Interested candidates may send their application & detailed resume along with a latest passport size photograph and a separate attachment highlighting major achievements in functional areas in not more than
    400 words, so as to reach the undersigned latest by September 30, 2011.

    Deputy General Manager – Human Resource Management
    2nd Floor, Corporate Office, SVC Tower, J.N. Road,
    Vakola, Santacruz (East), Mumbai – 400055
    email id:


    Sunday, September 18, 2011

    Allahabad Bank Probationary Officers Exam., 2011

                                  General Awareness

                                                    (Exam Held on 17-4-2011)

    1. Which of the following is/are the objective(s) of Free Trade Agreement, India has done with many countries ?
    1. To provide support to entrepreneurs for setting up new projects in tiny/SSI sector.
    2. For undertaking expansion of business.
    3. To support technology up-gradation.
    (A) Only 1 and 2
    (B) Only 2 and 3
    (C) All 1, 2 and 3
    (D) Only 1 and 3
    (E) None of these
    Ans : (C)

    2. Which of the following organisations issue the rules of global trade ?
    (A) World Bank
    (B) World Trade Organisation
    (C) Foreign Exchange Dealers’ Association
    (D) Directorate General and Foreign Trade
    (E) None of these
    Ans : (B)

    3. One single statement that depicts the financial position of a bank and/or business enterprise at a given point of time is called—
    (A) Statement of product details
    (B) Reconciliation Statement
    (C) Balance Sheet
    (D) Quarterly returns submitted to RBI
    (E) Trading and manufacturing account
    Ans : (C)

    4. Banks borrow money from the RBI on which of the following rates ?
    (A) Reverse Repo Rate
    (B) Repo Rate
    (C) SLR
    (D) CRR
    (E) Savings Rate
    Ans : (B)

    5. The Reverse mortgage scheme is launched to give benefit to which of the following groups of society ?
    (A) Govt. employees
    (B) Senior Citizens
    (C) Unemployed youth
    (D) War widows
    (E) None of these
    Ans : (B)

    6. What does the letter ‘M’ depict in the term SME as used in the financial world ?
    (A) Maximum
    (B) Medium
    (C) Mercantile
    (D) Mutual
    (E) Ministry
    Ans : (B)

    7. One of the major challenges banking industry is facing these days is deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following acts is passed to prevent this activity ?
    (A) Payment & Settlements Act
    (B) Banking Regulation Act
    (C) Negotiable Instrument Act
    (D) Narcotics and Psychotropic Substance Act
    (E) Prevention of Money laundering Act
    Ans : (E)

    8. Which of the following organizations provides guarantee to the exporters ?
    (A) Exim Bank
    (B) Export Credit Guarantee Corporation
    (C) Director General Foreign Trade
    (D) Reserve Bank of India
    (E) Registrar of companies
    Ans : (B)

    9. Which of the following terms is not used in Banking World ?
    (A) Credit
    (B) Rate
    (C) Financial Status
    (D) Discount
    (E) Absolute zero
    Ans : (E)

    10. What is the full form of IRR as used in banking/financial sectors ?
    (A) Internal Rate of Return
    (B) Internal Revaluation Reserve
    (C) Investment Reserve Ratio
    (D) Internal Risk Return
    (E) None of the above
    Ans : (A)

    11. Which of the following organisations provides credit history of the borrowers ?
    (A) CIBIL
    (B) ARCIL
    (C) SEBI
    (D) RBI
    (E) CCIL
    Ans : (A)

    12. Banks need liquidity to meet which of the following objectives of banking ?
    1.Meet deposit withdrawal
    2.Fund loan demands
    3.Maintain public confidence
    (A) Only 1
    (B) Only 2
    (C) Only 3
    (D) Only 1 and 2
    (E) Only 2 and 3
    Ans : (D)

    13. According to latest Economic Survey, which of the following sectors will provide largest share to Indian economy in the days to come?
    (A) Agriculture
    (B) Industry
    (C) Services
    (D) Exports
    (E) None of these
    Ans : (C)

    14. Which one of the following group represents key industries ?
    1. Crude oil, electricity
    2. Petroleum refining and finished steel
    3. Cement and coal
    (A) Only group 1
    (B) Only group 2
    (C) Only groups 1 and 2
    (D) Only group 3
    (E) All groups 1, 2 and 3
    Ans : (E)

    15. Which one of the following is covered in the list of services for service tax purposes ?
    1. Insurance/health services
    2. Hotel accommodation/air travel services
    3. Money changers/legal services
    (A) Only 1
    (B) Only 2
    (C) Only 3
    (D) Both 1 and 3
    (E) All 1, 2 and 3
    Ans : (E)

    16. Which of the following agencies is providing Unique Identity Cards to all Indian Residents ?
    (A) Election Commission of India
    (B) Ministry Foreign Affairs
    (C) Govt. of Maharashtra
    (D) Border Secutiry Force
    (E) None of these
    Ans : (A)

    17. Vikram Pandit is associated with which of the following banks ?
    (A) Yes Bank
    (B) ICICI Bank
    (C) Citigroup
    (D) HSBC
    (E) State Bank of India
    Ans : (C)

    18. Banks make frequent changes in their product profile including introduction of new products etc. This is called—
    (A) Product Control
    (B) Product enhancement
    (C) Product marketing
    (D) Product enrichment
    (E) None of these
    Ans : (B)

    19. Banking and financial services, all over the world, are regulated usually by Monetary Authority of the land. Who controls this function in India?
    (A) Ministry of Finance
    (B) SEBI
    (C) RBI
    (D) IRDA
    (E) FEDAI
    Ans : (C)

    20. As per guidelines of the RBI, banks are to provide appropriate banking facilities to habitations having population in excess of 2000 by which year ?
    (A) 2011
    (B) 2012
    (C) 2015
    (D) 2016
    (E) None of these
    Ans : (B)

    21. Which one of the following is the target fixed for maintaining fiscal deficit in the Union Budget of India ?
    (A) 4•6 per cent of total budget
    (B) 4•6 per cent of GDP
    (C) 3•6 per cent of total budget
    (D) 3•6 per cent of GDP
    (E) None of these
    Ans : (B)

    22. FIMMDA stands for—
    (A) Foreign Investment Markets & Derivatives Market Association
    (B) Fixed Income Money Markets and Derivatives Association
    (C) Fixed Income and Money Market Development Association
    (D) Floating Income and Money Markets Derivative Assets
    (E) None of these
    Ans : (B)

    23. On which one of the following issues, a group of top business leaders and other eminent citizens have expressed their concern to the Govt. of India ?
    (A) Corporate Governance
    (B) Fiscal deficit
    (C) Inflation
    (D) Governance deficit
    (E) None of these
    Ans : (C)

    24. Nobel Laureate Muhammed Yunus belongs to which one of the following countries ?
    (A) Sri Lanka
    (B) Pakistan
    (C) Maldives
    (D) Bangladesh
    (E) None of these
    Ans : (D)

    25. Who is the author of the book ‘Darkness At Noon’ ?
    (A) V. S. Naipaul
    (B) Chetan Bhagat
    (C) Arthur Koestler
    (D) Vikram Seth
    (E) None of these
    Ans : (C)

    26. For which one of the following purposes, Mega Food Parks scheme was introduced by the Government of India ?
    (A) To provide better price to farmers
    (B) To improve the productivity of food crops
    (C) To control the prices of food items
    (D) To avoid wastage of fruits and vegetables stored for export
    (E) None of these
    Ans : (A)

    27. Which of the following terms is not used in banking ?
    (A) Debit Card
    (B) Credit Card
    (C) Kisan Card
    (D) ELISA Test
    (E) None of these
    Ans : (D)

    28. Which of the following is the reason, owing to which Government charges export duty on some export items ?
    (A) It is to get benefit of high international prices
    (B) To improve the tax collection targets
    (C) It is as per international practices
    (D) To ensure the smooth availability of the items in India
    (E) None of these
    Ans : (D)

    29. Pipavav Port is located in which of the following States ?
    (A) Odisha
    (B) Andhra Pradesh
    (C) Tamil Nadu
    (D) Gujarat
    (E) West Bengal
    Ans : (D)

    30. Which of the following is/are the objective(s) of our monetary policy ?
    1. Anchor inflation expectations
    2. Actively manage liquidity
    3. Maintain interest rate regime consistent with price output and financial stability
    (A) Only 1
    (B) All 1, 2 and 3
    (C) Both 1 and 3
    (D) Only 2
    (E) None of these
    Ans : (C)

    31. With which one of the following fields was Pandit Bhimsen Joshi associated ?
    (A) Dance
    (B) Music
    (C) Short-story writing
    (D) Novels
    (E) None of these
    Ans : (B)

    32. For which of the following purposes, RBI has constituted a Working Group with Shri Deepak Mohanty as Chairman ?
    (A) Deregulation of primary markets
    (B) Deregulation of secondary markets
    (C) Deregulation of Savings Bank Rates
    (D) Introduction of Base Rate
    (E) None of these
    Ans : (D)

    33. Who is Kapil Sibal ?
    (A) Coal Minister of India
    (B) Civil Aviation Minister of India
    (C) Telecom Minister of India
    (D) Economic Advisor to Prime Minister of India
    (E) None of these
    Ans : (C)

    34. Which of the following will set up core banking infrastructure for rural banks ?
    (A) SIDBI
    (B) IBA
    (C) RBI
    (D) SBI
    (E) NABARD
    Ans : (E)

    35. Colonel Muammar al Gaddafi is associated with which one of the following countries ?
    (A) Libya
    (B) Beharin
    (C) Yemen
    (D) Tunisia
    (E) None of these
    Ans : (A)

    36. What is Gross Domestic Product ?
    (A) It is the cost of production of all final goods and services made in the country
    (B) It is the cost of services made within the borders of a country in a year
    (C) It is the market value of all final goods and services made in the country
    (D) It is the market value of all final goods and services made within the borders of a country in a year
    (E) None of these
    Ans : (D)

    37. Which of the following metals is used for generation of Nuclear Power ?
    (A) Silver
    (B) Gold
    (C) Uranium
    (D) Copper
    (E) Barium
    Ans : (C)

    38. In which one of the following States, India’s first Islamic Bank is proposed to be set up ?
    (A) Kerala
    (B) Tamil Nadu
    (C) Odisha
    (D) Bihar
    (E) None of these
    Ans : (A)

    39. In which one of the following States, Niyamgiri Bauxite Mining Project is proposed to be set ?
    (A) Odisha
    (B) Jharkhand
    (C) West Bengal
    (D) Bihar
    (E) Chhattisgarh
    Ans : (A)

    40. Which of the following terms is not used in Economics ?
    (A) Demand and Supply
    (B) Ad Valoram Tax
    (C) Break even
    (D) HIV positive
    (E) Cost benefit analysis
    Ans : (D)

    41. For which one of the following reasons Finance Minister denied entry of NRI funds for infra bonds ?
    (A) It will bring in more liquidity in the country
    (B) NRIs can withdraw their funds any time
    (C) It will bring interest burden on the country
    (D) It could lead to losses at the time of redemption because of fluctuations in the Indian Currency
    (E) None of these
    Ans : (B)

    42. What is ‘financial inclusion’ ?
    1. Easy access to bank accounts for safe parking of savings
    2. Availability of cheap credits through appropriately designed loans for poor and low income households and small entrepreneurs
    3. Availability of basic financial products like insurance
    (A) Only 1
    (B) Only 2
    (C) Only 3
    (D) Both 1 and 2
    (E) All 1, 2 and 3
    Ans : (B)

    43. According to the Securities and Insurance Laws (Amendment) Bill 2010, who amongst the following will be Vice-Chairman of joint commission to resolve differences amongst the financial regulators ?
    (A) Finance Minsiter, GOI
    (B) Deputy Chairman, Planning Commission
    (C) SEBI Chairman
    (D) Chairman, Central Vigilance Commission
    (E) RBI, Governor
    Ans : (E)

    44. Which of the following terms is used in Economics ?
    (A) Keynesian
    (B) Adsorption
    (C) Affinity Matrix
    (D) Gene Flow
    (E) None of these
    Ans : (A)

    45. Which one of the following is the directive given to the Govt. of India in the Financial Stability Report submitted to it ?
    (A) Focus on financial consistency
    (B) To reduce fiscal deficit
    (C) To ensure GDP growth
    (D) To reduce revenue deficit
    (E) None of these
    Ans : (B)

    46. In which one of the following States, Jangi-Thopon and Thopon-Powari Power Projects are proposed to be set up ?
    (A) J & K
    (B) H. P.
    (C) U. P.
    (D) Manipur
    (E) Meghalaya
    Ans : (B)

    47. Which one of the following is the proposal under the Food Security Law ?
    (A) To provide 25 kg of food-grains to ration card holders
    (B) To provide 25 kg of food-grains to targeted beneficiaries
    (C) To provide 35 kg of food-grains to ration card holders
    (D) To provide 35 kg of food-grains to targeted beneficiaries
    (E) None of these
    Ans : (C)

    48. Which one of the following are key policy rates used by RBI to influence interest rates ?
    1. Bank Rate/the Repo Rate
    2. Reverse Repo Rate
    3. CRR/SLR
    (A) Only 1
    (B) Only 2
    (C) All 1, 2 and 3
    (D) Only 3
    (E) Both 1 and 3
    Ans : (C)

    49. For giving cooking gas connection to poor families, which of the following one time subvention (in rupees) will be provided by the Planning Commission ?
    (A) 500
    (B) 600
    (C) 750
    (D) 1000
    (E) 1400
    Ans : (E)

    50. Which one of the following rates signal the RBI’s long term out-look on interest rates ?
    (A) Repo Rate
    (B) Reverse Repo Rate
    (C) Bank Rate
    (D) SLR
    (E) CRR
    Ans : (C)

    51. What do you understand by ‘Para Banking’ services ?
    (A) Eligible financial services rendered by banks
    (B) Utility services provided by banks
    (C) Services provided through business correspondents
    (D) Services provided to armed force personnel
    (E) None of these
    Ans : (C)

    52. For which one of the following reasons, the Steel Ministry wants complete ban on export of iron ore from India ?
    (A) The price of iron ore exports is not competitive
    (B) The iron ore exports do not provide any value addition to exports
    (C) The prices of iron ore are high and as such the exports of the ore should be banned
    (D) Iron ore is a non-renewable resource like coal and petroleum products, hence it should be preserved
    (E) None of these
    Ans : (D)

    53. What is a cross Border Exchange ?
    (A) Trading of foreign currency in India
    (B) Trading of Indian rupee in exchange of other currencies/ goods
    (C) Hawala transactions in Indian Rupee
    (D) Unauthorized remittance of Indian Rupee
    (E) None of these
    Ans : (A)

    54. What is Cartosat-2B ?
    (A) It is an advanced remote sensing statellite built by ISRO
    (B) It is a warhead developed by DRDO
    (C) It is an educational project launched by UGC
    (D) It is an advanced computer developed by IIT Kanpur
    (E) None of these
    Ans : (A)

    55. For which one of the following reasons RBI has decided to undertake mid-quarter policy reviews ?
    1. To realign its policies
    2. To take steps and ensure smooth flow of credit
    3. To provide guidance to the economy
    (A) Only 1
    (B) Only 2
    (C) Only 3
    (D) All 1, 2 and 3
    (E) None of these
    Ans : (D)

    56. Which one of the following is the objective of Financial Stability and Development Council ?
    (A) To address inter-regulatory issues only
    (B) To focus on financial literacy only
    (C) To focus on financial inclusion only
    (D) Only (A) and (B)
    (E) All (A) , (B) and (C)
    Ans : (C)

    57. For which one of the following reasons has the Planning Com-mission decided to convert itself into a system Reforms Commission ?
    (A) It is to make people to people contact
    (B) It is to understand the problems of people
    (C) It is to review the implementation of its policies
    (D) It is aimed at changing economic profile of the country
    (E) None of these
    Ans : (A)

    58. Which one of the following sectors in India has attracted highest amount of Foreign Direct Investment during 2009-10 ?
    (A) Manufacturing
    (B) Construction
    (C) Wholesale and Retail Trade
    (D) Financial Insurance, Real Estate
    (E) Civil Aviation
    Ans : (B)

    59. Which of the following is/are a renewable source of energy ?
    1. Wind
    3. Thermal
    (A) Only 1
    (B) Only 2
    (C) All 1, 2 and 3
    (D) Only 2 and 3
    (E) Only 1 and 2
    Ans : (E)

    60. Expand the term SWIFT—
    (A) Society for Worldwide Inter-national Financial Telecommunications
    (B) Society for Worldwide Inter-bank Financial Telecommunications
    (C) Society for Worldwide Inter-national Financial Transfers
    (D) Society for Worldwide Inter-bank Fiscal Transactions
    (E) None of these
    Ans : (B)

    61. For which one of the following reasons. NABARD has set up joint liability groups (JLG) of farmers ?
    (A) To facilitate delivery of credit to farmers
    (B) To facilitate better delivery of credit to farmers through informal sources
    (C) To facilitate better delivery of credit to share croppers and those who do not have their own land
    (D) To facilitate better delivery of credit to farmers through Panchayats
    (E) None of these
    Ans : (A)

    62. Which of the following terms is not used in Banking World ?
    (A) Holding Company
    (B) Post dated cheque
    (C) Credit
    (D) Time deposit
    (E) Centripetal force
    Ans : (E)

    63. What is the extent of claim that can be entertained by a Lok Adalat ?
    (A) Up to lakhs
    (B) Up to 10 lakhs
    (C) Up to 20 lakhs
    (D) Up to 50 lakhs
    (E) No limit
    Ans : (A)

    64. ‘ASHA’ is a scheme for providing which of the following services to the people in India ?
    (A) Health Service
    (B) Clean water
    (C) Primary Education
    (D) Employment for 100 days
    (E) None of these
    Ans : (A)

    65. Some private organizations are running e-choupals, to help which of the following section of society ?
    (A) Farmers
    (B) Small businessman
    (C) Cooperative Credit Societies
    (D) School-going children
    (E) Unemployed youth
    Ans : (A)

    66. Which is the currency of U.A.E. ?
    (A) Dirham
    (B) Dinar
    (C) Dollar
    (D) Taka
    (E) Pound Sterling
    Ans : (A)

    67. Who amongst the following is the author of the book ‘A bend in the River’ ?
    (A) Chetan Bhagat
    (B) V. S. Naipaul
    (C) Kiran Desai
    (D) Anita Desai
    (E) None of these
    Ans : (B)

    68. Which of the following terms is used in game of Cricket ?
    (A) Love
    (B) Scoop
    (C) LBW
    (D) Tee
    (E) Back-hand drive
    Ans : (C)

    69. Which one of the following was India’s per cent GDP growth during 2009-10 ?
    (A) 6•7
    (B) 9•2
    (C) 7•4
    (D) 9•7
    (E) None of these
    Ans : (C)

    70. Which one of the following countries in Europe is facing financial crisis ?
    (A) Ireland
    (B) Portugal
    (C) Rumania
    (D) Hungary
    (E) France
    Ans : (D)

    71. Which of the following schemes is launched for school children ?
    (A) Rajlakshmi
    (B) Kutir Jyoti
    (C) Mid Day Meal
    (D) Swajal Dhara
    (E) None of these
    Ans : (C)

    72. Loans of small or very small amounts given to low income group people are known as—
    (A) Investment Loans
    (B) Micro Credit
    (C) Savings Loan
    (D) Secured Loans
    (E) Cash Credit Loans
    Ans : (B)

    73. Which of the following is the Central Bank of U.S.A. ?
    (A) Federation of Banks in U.S.A.
    (B) Citigroup U.S.A.
    (C) Bank of America
    (D) Central Bank of U.S.A.
    (E) Federal Reserve System
    Ans : (E)

    74. Which one of the following countries was second biggest net importer of goods and services in the year 2009 ?
    (A) U.S.A.
    (B) India
    (C) China
    (D) Germany
    (E) Russia
    Ans : (B)

    75. The activity of purchasing shares of various companies is called—
    (A) On-line Trading
    (B) Share Trading
    (C) Real estate investment
    (D) Corporate Trading
    (E) None of these
    Ans : (C)

    Saturday, September 17, 2011


    1. Which period is called the 'banking swadeshi' period when many Indians established many banks?

    2. The banks established in Swadeshi period are ............?
    1) Bank of India
    2) Corporation bank
    3) Indian Bank
    4) Bank of Baroda
    5) All of the above

    3. In which part of India, many banks are established, which is called the 'Cradle of Indian Banking System'?
    1) Northern Assam
    2) Southern Tamilnadu
    3) Eastern Rajasthan
    4) Southern Karnataka
    5) Western Maharastra

    4. The most banks in India failed between ............ Not less than 100 banks failed due to various reasons?
    1) 1923-1928
    2) 1953-1958
    3) 1923-1948
    4) 1903-1928
    5) 1913-1918

    5. Which party issued a paper by name 'Stray thoughts on Bank Nationalization' signaling the nationalization of banks in India?
    1) Communist Party of India
    2) Janatha Party
    3) Congress Party
    4) Republican Party
    5) National Conference

    6. Banking Companies (Acquisition and Transfer of Undertaking) Bill passed in ...............paving way to the nationalization of banks in India?
    1) 1974
    2) 1969
    3) 1975
    4) 1981
    5) 1961

    7. Who said the nationalization of banks is the 'masterstroke of political sagacity'?
    1) Indira Gandhi
    2) Raj Narayan
    3) Jayaprakash Narayan
    4) Jawahar Lal Nehru
    5) Atal Bihari Vajpayee

    8. How many banks were nationalized in 1969?
    1) 18
    2) 6
    3) 14
    4) 20
    5) 5

    9. Which bank was not nationalized in 1969?
    1) Allahabad Bank
    2) Bank of Baroda
    3) State Bank of India
    4) Bank of India
    5) Bank of Maharastra

    10. How many banks were nationalized as a second dose in 1980?
    1) 4
    2) 9
    3) 6
    4) 18
    5) 12

    11. Bad debts mean ............?
    1) amounts owed to a company that are going to be paid
    2) amounts owed to a company that are not going to be paid
    3) amounts owed to a company that are going to be paid within 2 years
    4) amounts owed to a company that are not going to be paid within 8 years
    5) None

    12. GST council (Goods and Services Taxes Council) in the Constitution 115th Amendment Bill headed by ............ to make recommendations the taxes to be levied, goods to be exempted, GST rate etc?
    1) Prime Minister
    2) Finance Minister
    3) Commerce Minister
    4) Revenue Minister
    5) Finance Secretary

    13. The current limit of External borrowings is $ 20 billion. This Current limit is now raised to $ ............ billion?
    1) 21
    2) 40
    3) 70
    4) 60
    5) 30

    14. not the provision of the National Land Acquisition and Rehabilitation & Resettlement Bill?
    1) In the given area, least 80% of the population must agree to acquisition of land by the government.
    2) Land owners to be compensated with twice the registered or stamp value of the land in urban areas and six times in rural areas.
    3) Single law has the provisions of Acquisition of land and rehabilitation
    4) The government can appoint middle man to have talks with the local population to decrease the compensation
    5) Compensation reflects the market rates

    15. Food Security Bill proposed by National Advisory Council (NAC) proposes 90% ration in Rural Areas and ............% ration in Urban Areas. (National Advisory Council headed by Sonia Gandhi)
    1) 50
    2) 70
    3) 100
    4) 90
    5) 25

    16. The Union government decisions are given. Pick the correct one?
    1) National Legal Aid and Reforms commission coming soon
    2) Supreme Court ordered the return of 156 hectares of land to farmers in Uttar Pradesh, allocated to construct posh buildings.
    3) The postal department issues postal stamps on President of India's house Rastrapathi Bhavan
    4) Five PIO ( Person of India Origin) universities will be set up in the future.
    5) All of above

    17. Project 'Surakhya' an Infant and Young Child Feeding (IYCF) introduced by ............?
    1) Odisha
    2) Chattisgarh
    3) Arunachal Pradesh
    4) Madhya Pradesh
    5) Goa

    18. 'Nanhe Haath Kalam Ke Saath' ( tiny hands with pen) phase II announced against the social evil of Child Labour by ............?
    1) Karnataka
    2) Andhra Pradesh
    3) Uttar Pradesh
    4) Rajasthan
    5) Goa

    19. SAARC Interior Ministers conference was recently held in ............?
    1) Sri Lanka
    2) India
    3) Afganistan
    4) Bhutan
    5) Nepal

    20. Mahatma Gandhi led .............listed in the top ten of the most influential protests in the world as mentioned by 'Time magazine'?
    1) Non-cooperation Movement
    2) Swadeshi Movement
    3) Salt Satyagraha
    4) Quit India Movement
    5) Champaran Satyagraha

    21. A person who expects share prices in general to decline and who is likely to indulge in SHORT SALES is called ............?
    1) Bear
    2) Bull
    3) Dog
    4) Duck
    5) Lame Duck

    22. ............ was re elected as the UN Secretary General?
    1) Irina Bocova
    2) Robert Zollick
    3) Ban Ki-moon
    4) Hillay Clinton
    5) Christine Legarde

    23. Meghdoot awards conferred by ............?
    1) Air India
    2) Department of Water Resources
    3) Postal Department
    4) Department of Communications
    5) Supreme Court

    24. 'Areva' a French company belongs to following sector?
    1) Nuclear
    2) Toy
    3) Auto makers
    4) Mobiles
    5) Book

    25. In the list of nationalized banks, which bank was merged with Punjab National Bank in 1993?
    1) Bank of India
    2) Bank of Baroda
    3) Andhra Bank
    4) New Bank of India
    5) Central Bank of India

    26. ............was the prime minister of India during the nationalization of banks in 1969 and in 1980?
    1) Jawahar Lal Nehru
    2) Lal Bahadur Sastri
    3) Indira Gandhi
    4) Morarji Desaii
    5) P.V.Narasimha Rao

    27. Who among the following is not the present Deputy Governor of Reserve Bank of India?
    1) K.C.Chakravarthy
    2) Subhir Gokarn
    3) Y.Malegam
    4) Anand Sinha
    5) H. R.khan

    28. On 3 August 2011, ........... panel submitted its report to Reserve Bank of India on 'customer service in banks'
    1) Rangarajan
    2) Malegam
    3) Subba Rao
    4) H.R.Khan
    5) Damodaran

    29. ............firmly tell many rules and regulations relating to Non-Performing Assets?
    1) Banking Regulation Act 1949
    2) Foreign Exchange Management Act 1999
    3) SEBI Act 1992
    4) Indian Contract Act 1872
    5) Negotiable instrument act 1881

    30. On 30 June 2011 ............liberalized FDI norms by allowing the Indian companies to pay in the form of Equity in to the foreign suppliers instead of payment in the form of foreign exchange?
    1) SEBI
    2) Ministry of Finance
    3) Ministry of Commerce
    4) FDA
    5) RBI

    31. ............tied up with Met Life to enter in to insurance business recently?
    1) Andhra Bank
    2) Union Bank of India
    3) Corporation bank
    4) Allahabad Bank
    5) Punjab National Bank

    32. ............started, the saga of Liberlization of banks as a prime minister?
    1) Indira Gandhi
    2) Nehru
    3) Lal Bahadur Sastri
    4) P.V.Narasimha Rao
    5) Atal Bihari Vajpayee

    33. Which committee suggested the banking reforms?
    1) Kalia
    2) Deepak Mohanty
    3) Narasimham
    4) Syamala Gopinath
    5) Goparia

    34. The decade 1990-2000 is the era of Techsavvy private banks. Which are established during this period?
    1) Global Trust Bank
    2) UTI bank
    3) ICICI
    4) HDFC
    5) All of above

    35. Global Trust Bank was merged with ........?
    1) HDFC
    2) Oriental Bank of Commerce
    3) State Bank of India
    4) Syndicate Bank
    5) IDBI

    36. ............was merged with HDFC bank?
    1) Bank of Rajasthan
    2) Global Trust Bank
    3) Centurion Bank
    4) Bank of Bombay
    5) Imperial Bank of India

    37. ............has offered to India a loan of Rs.6,800 crore for building 24,000 km of all weather roads in the rural seven economically poor and hilly areas States
    1) IMF
    2) IFC
    3) World Bank
    4) IDA
    5) ADB

    38. India's first indigenous payment gateway is ............?
    1) India Expenditure
    2) India Payment
    3) India Challan
    4) India Pay
    5) India Rupee

    39. ............opened a Lockless branch at Shani Shingnapur (Maharastra) respecting the local customs?
    1) State Bank of India
    2) Bank of Maharastra
    3) Union Bank of India
    4) ICICI
    5) UCO bank

    40. ............and Life Insurance Corporation of India( LIC) tie up to launch Credit-Card services to the customers and employees of LIC?
    1) Axis Bank
    2) ICICI
    3) State Bank of India
    4) HDFC
    5) Kotak Mahendra Bank

    41. Tehri Hydro Development Corporation got $ 648 million from ............?
    1) IMF
    2) IDA
    3) ADB
    4) AFD
    5) IBRD

    42. On 10 August 2011, in which state National Bank for Agriculture and Rural Development (NABARD) proposed to give huge loans in the endosulfan-hit areas?
    1) Odisha
    2) Andhra Pradesh
    3) Uttar Pradesh
    4) West Bengal
    5) Kerala

    43. The best alternative banking service to branch banking to be the part of Financial Inclusion?
    1) Establishment of small branches
    2) Setup ATMs
    3) Issuing of ATM cards
    4) Giving Credit Cards
    5) Mobile banking

    44. Giving focused attention to integrated development of infrastructure in selected cities is the main theme of ............scheme?
    1) PURA
    2) JNNURM
    3) MGNREGA
    4) IAY
    5) RAY

    45. ...........became first state to sign an agreement on Emission Reduction Purchase with the World Bank to curb the carbon emissions?
    1) Andhra Pradesh
    2) Himachal Pradesh
    3) Haryana
    4) Goa
    5) Maharashtra

    46. MENA (Middle East and North Africa) region is the familiar for ............ industry?
    1) Toy
    2) Leather
    3) Petroleum
    4) Cotton
    5) Fruits

    47. The Award list given. Pick the correct one?
    1) 12th IIFA (International Indian Film Academy) top awards announced in Toranto
    2) Life Achievement Award got by Asha Bhonsle
    3) Best film award got by Dabangg
    4) Best Actor Award got by Shahrukh Khan
    5) All of above

    48. Guido Mantega used the word 'Currency War' referring ............?
    1) India
    2) China
    3) New Zeland
    4) Russia
    5) USA


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