1. A customer wishes to purchase some US dollars in India. Where should they go?
a) Public Debt Division of the RBI only
b) American Express Bank only
c) RBI or any branch of a bank authorized for such business
d) Ministry of Foreign Affairs
e) None of these
ANSWER: C
2. Which of the following bank products is specifically designed to provide financial help to children for their higher studies in India or abroad?
a) Personal Loan
b) Corporate Loan
c) Education Loan
d) Mortgage Loan
e) None of these
ANSWER: C
3. Which bank was founded by Nobel Peace Prize winner (2006) Muhammad Yunus?
a) Bank for the Poor
b) Swadeshi Bank
c) Rashtriya Bank
d) Grameen Bank
e) None of these
ANSWER: D
4. As per RBI directives, which function cannot be outsourced by banks?
a) Opening and closing of accounts
b) Cash collections from parties
c) Recovery of bad loans
d) Credit and Debit Card processing
e) Internet audit
ANSWER: A
5. What is the full form of NBFC in the financial sector?
a) New Banking Finance Company
b) National Banking and Finance Corporation
c) New Business Finance and Credit
d) New Business Fund Company
e) None of these
ANSWER: E (Non-Banking Financial Company)
6. Insurance service provided by banks is commonly known as:
a) Investment Banking
b) Portfolio Management
c) Merchant Banking
d) Bancassurance
e) Microfinance
ANSWER: D
7. What is the full form of ECB, frequently mentioned in financial news?
a) External Commercial Borrowing
b) External Credit and Business
c) Essential Commercial Borrowing
d) Essential Credit and Business
ANSWER: A
8. Which of the following is NOT a global stock exchange index?
a) Nasdaq
b) Nikkei
c) Kospi
d) Combix
ANSWER: D
9. What is the currency of Saudi Arabia?
a) Dirham
b) Peso
c) Dinar
d) Riyal
ANSWER: D
10. Which financial policy allows free conversion of local financial assets into foreign assets at market-determined exchange rates?
a) Capital Account Convertibility
b) Financial Deficit Convertibility
c) Minimum Support Price
d) Restrictive Trade Practices
e) None of these
ANSWER: A
11. Commercial paper is a source of credit for which of the following?
a) Corporate Industry
b) Small-Scale Industries
c) Commercial Banks
d) Foreign Banks
ANSWER: A
12. The base year of Consumer Price Index (CPI) for industrial workers was shifted from 1982 to:
a) 1998
b) 2000
c) 2016
d) 2002
ANSWER: C
13. Treasury bills in India are sold by:
a) Reserve Bank of India
b) State Government
c) Commercial Banks
d) SEBI
ANSWER: A
14. Money multiplier in India is defined as:
a) Broad Money/Base Money
b) Broad Money/Reserve Money
c) Reserve Money/Base Money
d) Base Money/Reserve Money
ANSWER: B
15. The most popular measure of inflation in India is:
a) General Price Rise
b) Wholesale Price Index
c) Consumer Price Index
d) Consumer Price Index for Industrial Workers
ANSWER: C
16. When did the term ‘Naya Paisa’ officially become ‘Paisa’?
a) April 1, 1957
b) October 2, 1962
c) June 1, 1964
d) April 1, 1965
ANSWER: C
17. The largest public sector commercial bank in India is:
a) State Bank of India
b) Punjab National Bank
c) Bank of Baroda
d) Canara Bank
ANSWER: A
18. The banking term “Nostro Account” refers to:
a) An account that a domestic bank holds in a foreign country
b) An account a foreign bank holds in India
c) An account for Non-Resident Indians
d) A bank’s internal accounts
ANSWER: A
19. Which organization is responsible for printing currency notes in India?
a) Reserve Bank of India
b) State Bank of India
c) Finance Ministry
d) NABARD
ANSWER: A
20. Which Indian bank was the first to introduce internet banking?
a) ICICI Bank
b) HDFC Bank
c) State Bank of India
d) Axis Bank
ANSWER: A
21. What is the minimum CRAR (Capital to Risk Weighted Assets Ratio) required as per Basel III norms?
a) 9%
b) 8%
c) 10.5%
d) 12%
ANSWER: C
22. Which Indian city hosts the headquarters of the Reserve Bank of India?
a) Mumbai
b) New Delhi
c) Kolkata
d) Chennai
ANSWER: A
23. The term “Repo Rate” is related to:
a) Short-term borrowing by banks from RBI
b) Long-term loans to businesses
c) Fixed deposit interest rate
d) Loan interest rates for customers
ANSWER: A
24. What does IFSC stand for in banking?
a) Indian Financial Security Code
b) International Financial Settlement Code
c) Indian Financial System Code
d) Internal Financial Secure Code
ANSWER: C
25. Which bank launched the first credit card in India?
a) State Bank of India
b) ICICI Bank
c) Central Bank of India
d) HDFC Bank
ANSWER: C
26. The headquarters of the World Bank is located in:
a) New York
b) Washington, D.C.
c) London
d) Geneva
ANSWER: B
27. Which of the following is a function of the Securities and Exchange Board of India (SEBI)?
a) Regulating the stock market
b) Issuing currency notes
c) Controlling foreign exchange rates
d) Monitoring bank interest rates
ANSWER: A
28. The primary function of NABARD is to:
a) Regulate urban cooperative banks
b) Provide credit to the agriculture and rural sector
c) Manage India’s foreign exchange reserves
d) Supervise commercial banks
ANSWER: B