Question 1

How many banks were nationalized India in the second stretch?

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

Cancellation of crossing can be done by

Accepted Answer

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

Question 4

Reserve Bank of India was nationalized in the Year

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

NABARD is a …

Accepted Answer

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

Question 7

The first bank established in India was….

Accepted Answer

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

Question 8

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

Accepted Answer

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 9

Merchant banking includes

Accepted Answer

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

Question 10

Lead banking scheme is meant for…..

Accepted Answer

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

Question 11

Who regulates the money circulation in India?

Accepted Answer

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

Question 12

"Sans recourse" means….

Accepted Answer

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

Question 13

Banks create money by

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

What is the expansion of IDBI?

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

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

Exam 9: Banking and Nationalization in India