In stock market the term Plain Vanilla Currency Options is associated with which of the following activities/operations?
A. Dollar-Rupee Exchange Rate
B. Launch of new mutual funds
C. Floating of Commercial Papers
D. Deciding the opening price of a share on a particular business day
Select an option to see the answer and solution.
Governmental economic policy which deals with taxation, expenditure, borrowing and the management of public debt in an economy is . . . . . . . .
A. monetary policy
B. credit policy
C. fiscal policy
D. taxation policy
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Which of the following banks launched the first non UTI mutual fund in India in June 1987?
A. State Bank of India
B. Canara Bank
C. Indian Bank
D. Bank of India
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Which one of the following statement is incorrect?
A. NABARD Consultancy Services (NABCONS) is a subsidiary of NABARD
B. In 1947, the Reserve Bank stopped acting as banker to the Government of Burma
C. Every NBFC should not be registered with RBI
D. RBI uses CRR either to drain excess liquidity or to release funds needed for the growth of the economy
Select an option to see the answer and solution.
Which of the following are agents but they can sell policies of several life and non-life insurance companies at a time?
A. Loss assessors
B. Brokers
C. Insurer
D. Insured
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Which of the following statement/s is/are correct regarding prepaid payment instruments?
1. Prepaid payment instruments are methods that facilitate purchase of goods and services against the value stored in such instruments.
2. The value stored in such instruments represents the value paid by the holder either by cash or by credit to a bank account or by credit card.
3. The prepaid instruments can be issued as smart cards, magnetic stripe cards, Internet accounts, online wallets, paper vouchers, and any such instruments used to access the prepaid account.
4. Interest paid on the prepaid instruments is similar to that paid on a savings bank account.
A. 1 and 2
B. 2 and 3
C. 1, 2 and 3
D. 1, 2, 3 and 4
Select an option to see the answer and solution.
Which one of the following statements is incorrect?
A. The LIC and GIC are non-banking financial intermediaries in India
B. LIC, UTI are non-banking financial institutions
C. ICICI was promoted as a Private Sector Development Bank at the initiative of the World Bank in 1955
D. Unit Trust of India is a mutual fund in private sector
Select an option to see the answer and solution.
Assertion (A) Taking of deposits and granting of loans single out banks.
Reason (R) Banks act as intermediaries when they mobilise savings from surplus units to shortage units in order to finance productive activities.
A. (A) is true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (R) is true, but (A) is false
Select an option to see the answer and solution.
Fully-owned subsidiary of RBI
A. National Housing Bank (NHB)
B. NABARD
C. Both A and B
D. None of the above
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Which risk management technique does self-insurance satisfy?
A. Risk reduction
B. Risk assumption
C. Risk avoidance
D. Shifting risk
Select an option to see the answer and solution.
To calculate capital adequacy ratio, the banks are required to take into account which of the following risks?
A. Credit risk and operational risk
B. Credit risk and market risk
C. Market risk and operational risk
D. Credit risk, market risk, operational risk
Select an option to see the answer and solution.
Repo rate is the rate at which
A. Banks takes money from RBI
B. RBI takes money from banks
C. Government take money from RBI
D. Money is taken by one bank from another bank
Select an option to see the answer and solution.
Which of the following can be defined as the contract between the original insurer and another insurer?
A. Premium
B. Cover note
C. Reinsurance
D. Co-insurance
Select an option to see the answer and solution.
Which one of the following is not the function of NABARD?
A. To provide refinance assistance by way of short-term credit to state cooperative banks and sectoral rural banks etc, approved by the RBI for some specific purposes
B. To undertake inspection of cooperative societies other than primary cooperative societies and RRBs
C. To promote research in various aspects of the problems of urban development
D. To subscribe to share capital or invest in securities of any institution concerned with agricultural and rural development
Select an option to see the answer and solution.
The well established and well-organised market where the sale-purchase of different securities takes place according to certain laws, is known as
A. production exchange
B. stock exchange
C. commodity exchange
D. None of these
Select an option to see the answer and solution.
Securitization is:
A. non-performing loans are acquired from banks and financial institutions at a discounted value and security receipts issued to them so that these loans are removed from their balance sheet enabling them to reduce the provision in respect of such loans and improve profitability
B. converting the illiquid loans of banks and financial institutions by Securitization Companies into tradable securities, after they are acquired and sold to the investors
C. a process of acquisition of non-performing loans from banks by a Securitization company and convert them into tradable securities and sold to the investors
D. All of the above
Select an option to see the answer and solution.
If the chairman is unable to attend any meeting of the SEBI then
A. the meeting shall be adjourned till the chairman is able to attend the meeting
B. the meeting shall continue without anyone chairing it and the chairman shall be informed about the proceedings of the same
C. the chairman has to leave a message appointing some other person to be in the chair in his absence
D. any other member chosen by the members present from amongst themselves shall preside at the meeting
Select an option to see the answer and solution.
Which of the following is not an instrument of credit control in the banking system?
A. Open market operations
B. Moral per suasion
C. Cash reserve ratio
D. Tax rates
Select an option to see the answer and solution.
Nomination facility is available to:
A. Individuals/Sole Proprietorship accounts/Private Limited Companies
B. Individuals/Sole Proprietorship Accounts/Partnership Accounts
C. Individuals/Sole Proprietorship Accounts
D. All of the above
Select an option to see the answer and solution.
Credit rating:
A. Is used to rate the borrowers while giving advances
B. Is used to work out performance of the employees
C. Is used to calculate the number of excellent audit rated branches
D. Is not used in any bank
Select an option to see the answer and solution.