1. In regards to insurance, “A policy provision that allows a policy to be restored from a lapsed status and resume active coverage” is termed as?

1.     Reaffirmation
2.     Reinsurance
3.     Reinstatement
4.     Revocation
5.     None of these

2.Which of the following is not a tool in the hands of RBI to control the inflationary pressure in the country ?

1.              Bank Rate (BR)
2.              Special Drawing Rights (SDR)
3.              Statutory Liquidity Ratio (SLR)
4.              Cash Reserve Ratio (CRR)
5.              None of these

3.On the recommendation of which committee was NABARD established?

1.          Rangarajan
2.          Shivraman
3.          Narasingam
4.          Vijay Kelkar
5.          Malegam

4. Which of the following committee is set up for giving clear definition to FDI and FII with an aim to remove ambiguity over the two types of Foreign Investments?

1. Gopinath Committee
2. Araving Mayaram Committee
3. Subir Gokaran Committee
4. Sushma Nath Committee
5. None of the above

5. Which of the following is not a salient feature of Debit Card?

1)       No Bad debts to banks and no suits for recovery

2)       No Interest earning for banks

3)       Works like a normal withdrawal

4)       Can be used at ATM and POS

5)       45Days credit given to the Customer

6. Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfillment of its terms and conditions. What is this arrangement known in Banking context?

1)       Line of Credit

2)       Letter of Credit

3)       Loan to client

4)       Loan on Credit

5)       Loan against Credit

7. When a Bank provides a loan for purchase of White Goods, it is categorised as?

1)       Consumption loan

2)       White Goods Loan

3)       Consumer Durable Loan

4)       Working Capital

5)       Bridge Loan

8. With reference to a cheque which of the following is the Drawee Bank?

1)       The Bank that collects the cheque

2)       The Payee's Bank

3)       The endorsee's Bank

4)       The endorser's Bank

5)       The Bank upon which the cheque is drawn

9.Which of the following is correct statement?

1)       Normally no interest is paid on current deposit

2)       Interest is paid on current accounts at the same rate as term deposit accounts

3)       The rate of interest on current account and savings account are the same

4)       No interest is paid on any deposit by the bank

5)       Savings deposits are the same as current deposits

10. Fixed deposits recurring deposits are -

1)       Repayable on demand or after an agreed period as per bank's choice.

2)       repayable after an agreed period

3)       repayable on demand

4)       repayable after death of depositors

5)       not repayable

11. The usual deposit accounts of banks are

1)       Current Accounts, electricity accounts and insurance premium accounts

2)       Current accounts, Post Office savings bank accounts and term deposit accounts

3)       Loan accounts, savings bank accounts and term deposit account

4)       Current bill accounts and term deposit accounts

5)       Current accounts, savings bank accounts and term deposits accounts

12. Financial Inclusion means provision of -

1)      Ration at affordable cost to person not yet given the same

2)      house at affordable cost to the person not yet given the same

3)      Financial Services namely, payments, remittances, savings, loans and insurance at affordable cost to person not yet given the same

4)      food at affordable cost to person not yet given the same

5)      education at affordable cost to person not yet given the same

13. Which of the following is known as cross selling by Banks? 

A) Sale of credit card to a debit card holder

B) Sale of a Insurance Policy to a depositor

C) Issuance of Cash against Cheque presented by a third party

1)       Only A

2)       Only B

3)       Only C

4)       Both A and C

5)       All A, B and C

14. As per the New Guideline issued by the Reserve Bank of India, which of the following categories will be given relaxation in KYC norms while opening bank account and borrowing from the banks?

1)       Marginal Farmers

2)       Daily Labours

3)       Self Help Groups

4)       All the above

5)       None of the above

 15. Which of the following is not a measure to control inflation adopted by the Government or Reserve Bank of India (RBI)

1)       Monetary Policy

2)       Fiscal Policy

3)       Public Distribution System

4)       Price Control

5)       Financial Inclusion