Deck 9: Banking and Nationalization in India

Question 1

The term bank is derived from the German word 'Banc' which means…….

A)Security
B)Safety
C)Money
D)Joint stock fund

Answer 1

Joint stock fund

Question 2

On…………14 banks with deposit of 50 crores or more taken over by the Government of India

A)1st April 1947
B)19th July 1969
C)1st November 1954
D)31st March 1975

Answer 2

19th July 1969

Question 3

How many banks were nationalized India in the second stretch?

A)6
B)9
C)10
D)15

Answer 3

6

Question 4

Schedule banks are those banks which are included in the ………….

A)Second schedule of the Reserve Bank of India Act 1934
B)Third schedule of the Reserve Bank of India Act 1934
C)Fifth schedule of the Reserve Bank of India Act 1934
D)None of the above

Question 5

….......is continues arrangement between a Commercial Bank and a business concern for the purchase of book debt of the business concern.

A)Leasing
B)Venture capital finance
C)Factoring
D)Credit rating

Question 6

Who regulates the money circulation in India?

A)SBI
B)RBI
C)NABARD
D)Commercial Banks

Question 7

Reserve Bank of India was nationalized in the Year

A)1947
B)1948
C)1949
D)1950

Question 8

What is the expansion of IDBI?

A)Industrial development bank of India
B)Institutional development bank of India
C)Insurance development bank of India
D)None of the above

Question 9

Credit rationing is a………….method of credit control

A)Quantitative
B)Qualitative
C)Direct
D)Continues credit control

Question 10

"Sans recourse" means….

A)I am not afraid
B)Do not touch me
C)Ask the drawer
D)Without liability to me

Question 11

The first bank established in India was….

A)Bank of Bengal
B)Bank of Hindustan
C)Allahabad Bank
D)Punjab National Bank

Question 12

"Customer" is defined in ………….

A)Banking Regulation Act
B)Negotiable instrument Act
C)RBI Act
D)None of these

Question 13

Internet is the cheapest of all banking channel and helps banks to gain substantially in terms of…….Cost

A)Auditing
B)Deposit
C)Investment
D)Transaction

Question 14

The RBI was originally constituted as a shareholder bank with a share capital of ….

A)50 lakh
B)100 lakh
C)10 crore
D)5 crore

Question 15

…......constitute the largest source of funds for the bank

A)Cash
B)Loan
C)Deposit
D)Commission

Question 16

Collection of cheques for the customer is a ……………… function of banks

A)Agency
B)Trustee
C)lending
D)Innovative

Question 17

After a customer closed his account…..

A)The banker is not liable to observe the secrecy of his account
B)The banker still liable to keep secrecy
C)The banker's duty of secrecy comes to an end in terms of the provisions of the Negotiable Instrument Act
D)None of the above.

Question 18

A mandate may continue to be operative even in the case of……………….

A)Death of the agent
B)Lunacy of the agent
C)Insolvency of the agent
D)None of these

Question 19

A document issued by the bank to acknowledge the receipt of a fixed sum of money deposited….Is called

A)Collection receipt
B)Pay in slip
C)Fixed deposit receipt
D)Bond

Question 20

The endorser will not liable to the holder on dishonor of a negotiable instrument if he makes….

A)Sans-recourse endorsement
B)Facultative endorsement
C)Sans-frais endorsement
D)None of the above

Question 21

The relationship between a banker and its customer is basically ……

A)A debtor and a creditor
B)A trustee and the beneficiary
C)A principal and agent
D)None of the above

Question 22

Cancellation of crossing can be done by

A)Holder of the cheque
B)payee of the cheque
C)Drawer of the cheque
D)None of the above

Question 23

Merchant banking includes

A)Managing issues of shares
B)Opening branches in mandis or bazaars
C)Financing intermediary businessman
D)None of the above

Question 24

Banks create money by

A)Liberal credit
B)Differential instrument
C)Accepting deposit
D)All of the above

Question 25

…......banks are those banks which are incorporated outside India and their head offices are also situated outside India

A)Foreign banks
B)Scheduled banks
C)Non- scheduled banks
D)Commercial banks

Question 26

Who is authorized to issue coins in India?

A)RBI
B)Ministry of finance
C)SBI
D)None of these

Question 27

NABARD is a …

A)Department of RBI
B)Wholly owned subsidiary of RBI
C)Subsidiary of RBI
D)None of the above

Question 28

The banker advances money against immovable property only when the property is…..to the banker

A)Mortgaged
B)Pledged
C)Hypothecated
D)None of these

Question 29

Lead banking scheme is meant for…..

A)Widening banking service
B)Modernizing banking service
C)Channelizing credit
D)Increasing profit of Commercial Banks