The ratio of deposits to loans of a bank is known as _______ A. NPA coverage Ratio B. Return on asset ratio C. Asset Coverage ratio D. CD Ratio E. Other than those given as options

1 Answer

Answer :

E. Other than those given as options Explanation: The loan to deposit ratio is used to calculate a lending institution‘s ability to cover withdrawals made by its customers.

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Description : Loans granted by a bank to an exporter popularly known as „Export credit‟ is guaranteed, in case of default,by which of the following A. EXIM Bank B. Ministry of International Trade, GOA C. ECGC D. DICGC E. Other than those given as options

Last Answer : C. ECGC Explanation: ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

Description : A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

Last Answer : C. A loan asset on which interest and/or instalments remain unchanged. Explanation: A nonperforming asset (NPA) refers to a classification for loans on the books of financial institutions that are in ... is classified as nonperforming when loan payments have not been made for a period of 90 days.

Description : In Bank‟s balance sheet, which of the following is an asset? A. Its paid up capital B. Its saved deposits C. Its instrument in government securities D. Its accumulated Reserve Funds E. Its Current Deposits

Last Answer : C. Its instrument in government securities Explanation: Bank assets comprises cash, money at short notice, bills and securities discounted, bank‘s investments in government securities, loans sanctioned by the bank.

Description : The “Stand Up India” is aimed at promoting entrepreneurship among women and scheduled castes and tribes. The bank loans under the scheme shall be referenced to _______ A. SIDBI B. NABARD C. RBI D. MUDRA E. DRDA

Last Answer : A. SIDBI Explanation: The ―Stand up India Scheme‖ is being launched now to promote entrepreneurship among Scheduled Caste/Schedule Tribe and Women for loans in the range of Rs. 10 Lakhs to Rs. 100 Lakhs. The bank loans under the scheme shall be referenced to SIDBI.

Description : Bank Rate refers to the interest rate at which - (1) Commercial banks receive deposits from the public (2) Central bank gives loans to Commercial banks (3) Government loans are floated (4) Commercial banks grant loans to their customers

Last Answer : (2) Central bank gives loans to Commercial banks Explanation: Bank rate is the interest rate at which a nation's central bank lends money to domestic banks. Often these loans are very short in duration.

Description : Which of the following is not the function of commercial bank? (a) Acceptance of deposits. (b) Advancing loans. © Issue of paper notes. (d) Credit control.

Last Answer : © Issue of paper notes.

Description : In which of the following types of banking, there is a direct execution of transaction between a bank and its consumers? A. Retail Banking B. Universal Banking C. Virtual Banking D. Unit Banking E. other than those given as options

Last Answer : A. Retail Banking Explanation: Retail banking also known as Consumer Banking is the provision of services by a bank to individual consumers, rather than to companies, corporations or other ... include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards.

Description : Bank Holidays are covered by which of the following? A. As per the order of the GOI B. As per the order of the IBA C. Negotiable Instruments Act D. RBI Act E. Other than those given as options

Last Answer : C. Negotiable Instruments Act Explanation: Bank Holidays are declared by Central/State Governments/ Union Territory under the Negotiable Instruments (NI) Act, 1881.

Description : Which of the following service(s) is/are available in small finance banks? A. Providing loans B. Acceptance of deposits C. Setting up of Subsidiaries D. Both (A) and (B) E. None of the Above

Last Answer : D. Both (A) and (B) Explanation: Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending.

Description : Bad loans in banking terminology are generally known as– (A) BPOs (B) Prime Asset (C) NPAs (D) CBS

Last Answer : Answer: NPAs

Description : What is the full form of 'NPA' ? -How To ?

Last Answer : The full form of 'NPA' is Non-Performing Assets

Description : What is the full form of 'NPA' ? -How To ?

Last Answer : The full form of 'NPA' is Non-Practising Allowance

Last Answer : NPA - Non-performing Assets

Description : Which of the following is known as Demat account? A. Account in which shares are held in electronic form B. other than those given as options C. Account allowed to be operated by ... minor D. Account operated by business correspondents in rural centres. E. Account opened with zero balance

Last Answer : A. Account in which shares are held in electronic form Explanation: A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker).

Description : If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sales a. discount. b. return. c. contra asset. d. allowance.

Last Answer : b. return.

Description : Which of the following banks has teamed up with Apollo to set up asset reconstruction company (ARC)? A) SBI B) Punjab National Bank C) Axis Bank D) ICICI Bank E) Both A and D

Last Answer : D) ICICI Bank Explanation: With the banking sector buffeted by bad loans, the country s largest private lender ICICI Bank teamed up with private equity major Apollo Global Management to launch an ... will acquire debt from lenders and also take equity stakes in borrowers, a bank statement read.

Description : Which of the following companies has set up two wholly owned subsidiaries in July 2016, one for its broker business and another for insurance business? A) EXIM Bank B) Religare Enterprises C) Muthoot Finance D) Sahara Asset Management Company E) None of these

Last Answer : B) Religare Enterprises Explanation: Religare Enterprises has set up two wholly owned subsidiaries – Religare Broking Limited and Religare Insurance Ltd – as part of its restructuring plan.

Description : Deposits under Foreign Currency Non-Resident(FCNR) scheme can be accepted for a minimum of _______ A. 15 days B. 3 months C. 6 months D. 1 year E. 7 days

Last Answer : D. 1 year Explanation: Term Deposit with maturity of minimum 1 year & maximum 5 years can be opened under Foreign Currency Non-Resident(FCNR) scheme.

Description : Minimum period of reinvestment deposits is _______ A. 2 months B. 3 months C. 6 months D. 9 months E. E. None of the Above

Last Answer : C. 6 months Explanation: A Reinvestment Deposit Plan basically allows you to reinvest the interest earned on your deposit. Period of deposit 6 months to 10 years.

Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Last Answer : a. it is a system of 12 central banks

Description : Which of the following sources is not use for medium term financing? A. Issue of equity shares. B. Issue of debentures. C. Term loans from banks. D. Sale of current asset.

Last Answer : A. Issue of equity shares.

Description : Part of company‟s earning or profit which is paid out to share holders is known as _______ A. Premium B. Dividend C. Bonus D. Sum Assured E. Return

Last Answer : B. Dividend Explanation: A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest ... business (called retained earnings), and pay a fraction of the profit as a dividend to shareholders.

Description : What is the ceiling on amount of Insured deposits kept by one person in different branches of a bank? A. Rs.25000 B. Rs.50000 C. Rs.75000 D. Rs.1,00,000 E. Rs.2,00,000

Last Answer : D. Rs.1,00,000 Explanation: The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount upto Rupees one lakh is paid.

Description : When a customer deposits cheque to a bank, the bank is a(n) A. Drawer B. Agent C. Principal D. Drawee E. Bailee

Last Answer : B. Agent Explanation: When a customer deposits cheque to a bank then that particular bank acts as an agent for the customer. Collection occurs when the drawee bank (the bank ordered by the cheques ... of the drawer (its customer who has written the cheque) and presents it to the collecting bank.

Description : Loan and Advances of a bank come under which of the following category? A. Assets B. Liabilities C. Deposits D. All of the Above E. None of the Above

Last Answer : A. Assets Explanation: Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset. Anything tangible ... to produce value and that is held to have positive economic value is considered an asset.

Description : The structure of the registry which will enable quick sharing of information about unstructured borrowers and help banks fight bad loans. The registry is called _______ A. CIBIL B. Fraudelent Borrowers List C. RBI wilful Defaulter List D. Central Fraud Registry E. None of the Above

Last Answer : D. Central Fraud Registry Explanation: The Reserve Bank of India has operationalised a Central Fraud Registry (CFR). The registry will make available more information to banks at the time of starting a ... of an account. The CFR is a centralised searchable database which can be accessed by banks.

Description : D) ICICI Bank Explanation: New features will enable customers to instantly pay taxes and book railway tickets within the app. iMobile users will also be able to purchase travel & motor insurance as well as buy mutual funds from 19 asset management companies.

Last Answer : According to HSBC, India is expected to contribute how much of the world GDP by the middle of next decade? A) 4.3% B) 4.9% C) 5.2% D) 3.4% E) None of these

Description : The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : (1) sale of stocks and bonds to the public Explanation: Companies issue securities called stocks and bonds to raise necessary capital which funds the company's daily operations and growth. ... issuing stock to owners called stockholders doesn't require the company's repayment of investor principal.

Description : Which of the following is not the function of commercial banks? (a) Issue of paper notes. (b) Credit control. © Acceptance of deposits (d) Advancing loans.

Last Answer : (a) Issue of paper notes.

Description : The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : sale of stocks and bonds to the public

Description : What is the currency deposit ratio (cdr)? a) ratio of money held by the public in currency to that of money held in bank deposits b) ratio of money held by public in bank deposits to that of money ... ratio of money held in demand drafts to that of money held in treasury bonds d) none of the above

Last Answer : a) ratio of money held by the public in currency to that of money held in bank deposits

Description : According to a report by Reserve Bank of India, country‟s gross bad loans are expected to grow from 7.6% to ________ by March 2017. A) 9.2% B) 8.2% C) 8.5% D) 8.0% E) None of these

Last Answer : C) 8.5% Explanation: Gross bad loans at banks may rise to 8.5 percent of total assets by March 2017 from 7.6 percent in March 2016 if the central bank orders them to conduct a second round of ... Meanwhile, under a -severe stress situation, total bad loans could rise to 9.3 percent in March 2017.

Description : The China-led Asian Infrastructure Investment Bank (AIIB) approved its first set of loans amounting to $ 509 million to four countries. Which of the following Is not among these 4 countries? A) Bangladesh B) Indonesia C) Pakistan D) Nepal E) Tajikistan

Last Answer : D) Nepal Explanation: AIIB headquartered in Beijing, China, has given loan to finance projects in four countries viz. Bangladesh, Pakistan, Indonesia and Tajikistan.

Description : The International Bank for Reconstruction and Development(IBRD) is an international financial institutions that offer loans to _____ A. Multinational Banks B. Multinational Financial Institutions C. Middle Income Developing Countries D. Non Government Organizations E. None of the Above

Last Answer : C. Middle Income Developing Countries Explanation: The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries.

Description : Maximum loan amount to individuals against security shares can be _____ A. 20 lakh B. 15 lakh C. 25 lakh D. 50 lakh E. other than those given as options

Last Answer : A. 20 lakh Explanation: Loans/ advances granted to individuals against the security of shares, debentures and PSU bonds should not exceed Rs.10 lakh and Rs.20 lakh, if the securities are held in physical form and dematerialized form respectively.

Description : The Foreign exchange of India is kept with _________ A. SBI B. ECGC C. RBI D. NABARD E. other than those given as options

Last Answer : C. RBI Explanation: Reserve Bank of India accumulates foreign currency reserves by purchasing from authorized dealers in open market operations. Foreign exchange reserves of India act as a cushion against rupee ... Currency Assets (b) Gold (c) SDRs (d) Reserve Tranche Position in the IMF.

Description : Balance in a current account is classified as ________ A. Hybrid Deposit B. Term Deposit C. Demand Deposit D. Flexi Deposit E. other than those given as options

Last Answer : C. Demand Deposit Explanation: Current accounts form a large portion of demand deposits of a bank. It can be opened by Individuals, Business entities (firms, company), Institutions, Government bodies / departments, Societies, Liquidators, Receivers, and Trusts.

Description : Who amongst the following is the regulator in the financial system of the country? A. Other than those given as options B. SEBI C. CRISIL D. TRAN E. CERC

Last Answer : B. SEBI Explanation: The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds. Example of Financial Regulators: RBI, IRDAI, SEBI, PFRDA.

Description : Fixed Deposits and Recurring Deposits are _________ A. repayable after an agreed period. B. repayable on demand. C. not repayable. D. repayable on demand or after an agreed period as per bank‘s choice.

Last Answer : D. repayable on demand or after an agreed period as per bank s choice. Explanation: A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a ... every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.

Description : With regard to the rate of return on investment (ROI), which one of the following statements is not valid ? (A) It is an overall indicator of the profitability of an enterprise (B) It is a ... superior measure compared to the cash flow generated per share (D) It was first developed by Dupont, USA

Last Answer : Answer: It is a superior measure compared to the cash flow generated per share

Description : Which of the following is an advantage of turnkey projects? A. Can earn a return on knowledge asset B. Will not create a competitor C. Tight control of operations D. All the above

Last Answer : Can earn a return on knowledge asset

Description : Relief-from-royalty method estimates the value an asset based on the value of the royalty payments __________. a) from which the company is relieved due to its ownership of the asset b) made by the ... by the company from the useful life of the asset d) over and above the internal rate of return

Last Answer : a) from which the company is relieved due to its ownership of the asset

Description : Which principle tells us that an investor will not invest in an asset if a more attractive substitute exists? a) Principle of alternative b) Principle of expectation c) Principle of substitution d) Principle of risk and return

Last Answer : c) Principle of substitution

Description : A financial contract that derives its value from another asset or an index of asset values is known as __________ A. Insurance Policy B. Security C. Derivative D. Share E. None of the above

Last Answer : C. Derivative Explanation: In finance, a derivative is a contract that derives its value from the performance of an underlying entity.

Description : Derivatives contract which gives the buyer/holder of the contract the right(but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period is ... B. Option Contract C. Index Futures contract D. Mini Derivative contract E. None of the Above

Last Answer : B. Option Contract Explanation: Options Contract is a type of Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period.

Description : The life - span of a CD - ROM is _______: a) approximately one year b) approximately two year c) approximately five year d) approximately twenty - five years e) All of The Above

Last Answer : c) approximately five year

Description : Reusable optical storage will typically have the acronym _______: a) CD b) DVD c) ROM d) RW e) ROS

Last Answer : d) RW

Description : he ratio of current asset to currnt liability is known as -------------- a) Liquid ratio b) Current ratio c) Absolute liquid ratio d) Turn over ratio

Last Answer : b) Current ratio

Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times

Last Answer : Answer: 4•06 times