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MCQ For Final Exam Functions Bank Oct 18 II

This document contains 20 multiple choice questions about banking functions and terms compiled by Prof. GvsRao. The questions cover topics such as types of bank deposits, foreign currency deposits, priority sector lending categories, non-fund based facilities, and permissible banking business activities. For each question, the correct answer is provided, with brief explanations for some answers. The document serves as a review of key concepts for banking professionals preparing for certification exams.

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0% found this document useful (0 votes)

68 views27 pages

MCQ For Final Exam Functions Bank Oct 18 II

Uploaded by

Subba Rao

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PPT, PDF, TXT or read online on Scribd

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MCQs on Functions of Banking

Compiled and edited by Prof. GvsRao

MBA CAIIB PG Dip IRPM DCB

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION -1
A bank accepts a deposit from a Corporate house.
The features of the deposit are:
i) accepted at a discounted value
ii) stamp duty is borne by the bank
iii)issued as usance promissory note
iv)TDS is not applicable

Identify the deposit

a) commercial paper
b) certificate of deposit
c) flexi deposit
d) caution deposit

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
ANSWER -b

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION - 2

Banks cannot accept FCNR B deposits in -----

a) Canadian dollar
b) Singapore dollar
c) US dollar
d) Australian dollar

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
• Answer - b

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION - 3

Tele banking is based on

a) virtual banking
b) online banking
c) voice processing
d) core banking

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
• Answer -c

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION-5
• Charge created on LIC Policy is:
• a) Hypothecation
• b) Pledge
• c) Assignment
• d) Mortgage

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
ANSWER -d

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION-6
• The term “Credit Management” covers
• a) Capital adequacy norms
• b) Risk management including
Asset/Liability management
• c) Credit appraisal – decision and review of
loans & advances
• d) All of the above

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
ANSWER -d

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION-7
The time taken to convert cash into raw
materials, semi finished goods, finished
goods and into cash , is known as
a)Trade cycle
b)Cash cycle
c)Operating cycle
d)Revolving cycle

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
ANSWER -c

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION-8
Loan for fish rearing is covered under Prirority
Sector as ----------- advances
a) Direct Agriculture
b) Indirect Agriculture
c) Self Employment Scheme
d) Allied to indirect Agriculture

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
ANSWER -a

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION -10
Except one of the following others are known
as Non Fund based facilities:
• a) Letters of Credit
• b) Bank Guarantees
• c) Co-acceptance of Bills
• d) Term Loan

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
ANSWER -d

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION-12
• Obligation of a Banker to maintain secrecy is
applicable to
• a) Only in case of existing deposit accounts
• b) Only in respect existing loan accounts
• c) Only in case of closed accounts
• d) All types of deposit/loan accounts
(existing/closed)

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
ANSWER-d

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION-14
Management of a Bank vests with
• a) Reserve Bank of India
• b) Asset Liability Committee (ALCO)
• c) Board of Directors
• d) None of the above

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
Answer - d

Compiled and edited by Prof. GvsRao MBA

CAIIB PG Dip IRPM DCB
QUESTION-18
In a securitisation deal, the role of a Special Purpose Vehicle
(SPV) is

a. To acquire large Non Performing Loans (NPA)

b. To acquire such loans from a bank or financial institution
c. To acquire such loans for a transfer price,
with or without recourse
d. To manage the acquired loans for the purpose of
realization or holds them as investment till maturity
Compiled and edited by Prof. GvsRao MBA
CAIIB PG Dip IRPM DCB
Answer - d