Institute of Banking Personnel Selection
IBPS Clerk CWE Banking Awareness Questions
1. Which of the following statements is true?
- The licence to open branches of bank is granted by Board of Directors of that Bank
- There is no need of licenses to open branch of a bank
- A licence to open a branch is issued by the Central Government
- A licence to open a branch is issued by the Reserve Bank of India under the provisions of Banking Regulation Act, 1949
- Banking company need not plan to pay for future depositors
- Banking company can plan for its capital structure once the licence is granted
- The business undertaken by the banking company should not frustrate the interest of public
- The banking company can undertake business other than banking with the permission of annual general body
- Registrar of Issue
- Investment Banker
- Advertisement Agency
- Registrar of Companies
- Investments
- Advances
- Cash Balances with other banks
- Borrowings
- Lending policies
- Quality control
- Loan product mix
- Advertising of loan products
- Receiving notices relating to cancellation of any part of the loan
- Calling of loans in the event of default
- Receiving the fee from the borrower and distributing among the participating banks
- Receiving notices relating to transfers of banks
- The erosion in the net-worth due to accumulated losses is up to 25% of its net worth during the previous account year
- The erosion in the net-worth due to accumulated losses is up to 50% of its net worth during the previous account year.
- The unit should have been in commercial production for at least five years
- Lack of updations in technological development
- Providing entrepreneurship development programs
- Developmental efforts
- Export promotion and liaison activities
- Financial support
- Rural and Semi-urban branches of commercial banks
- Urban branches of commercial banks
- Branches of commercial banks situated in metro cities
- Development banks
- Future rentals of a fishing boat
- Hire purchase receivables
- Demand drafts received by the banker during clearing
- Future billings for an airline
- The special purpose vehicle (SPV) purchases the assets from the borrower directly during the securitization
- The originator and obligor are the same persons in securitization process
- Administrator collects the payments due from the obligor and passes it to the SPV and follows with defaulters
- Mortgage based securitization provides high yields to the investor
- The letter of credit can be used as back- to- back letters of credit
- The beneficiary under the letter of credit may receive payment even at the pre-shipment stage
- The beneficiary under the letter of credit may receive payment even at the post-shipment stage
- The cash advance is not permitted against such letter of credits
- Type of a letter of credit
- Guarantee issued by the ship captain to the purchaser
- Guarantee issued to the borrower towards the loan granted by the shipping company
- Deferred payment guarantee issued by a banker at the request of the consignee when the documents are not received and goods are received, for facilitating the delivery of goods.
- The charge card is a credit instrument
- Under this facility the cardholders need to pay amount within ten installments
- Cardholder has to pay the 100% of the purchase amount within 30 days of purchase
- The charge card shall have revolving credit
- Personal accident insurance
- Cash withdrawals
- Add-on facility
- Issue of deferred guarantee
- Liquidity to existing shares
- Increase in visibility and reputation to the company
- Better pricing and placement with new investors
- Need to make continuous disclosures
- No professional memberships or incorporation are required
- General reputation in the market
- Good rapport with market intermediaries
- Distribution net work of the organization
- Notes and small coins
- Overdue recurring deposits
- Short term loans
- Staff advances
- Directors of the bank
- Staff working in the bank
- Students going abroad
- Professionals
- Credit unions
- Commercial banks
- Mutual funds
- Regional rural banks
- Low costs
- Flexibility in payments
- Eliminates the risk of obsolescence
- High competitions because of entry to all financial institutions
- Retributive theory
- Reformative theory
- Financial repression theory
- Jurisdictional theory
- Pension funds
- Credit unions
- Life insurance companies
- Small scale service institute.
- Registration of charges and mortgages
- Transactions services
- Asset transaction
- Real-time Gross Settlement
- Market competitions
- Market rapport
- Market discipline
- International market relations
- Minimum amount of balance that is maintained in the account in between 10th and the last day of month
- Maximum amount of balance that is maintained in the account in between 10th and the last of month
- Minimum amount of balance that is maintained in the account in between 1st and the last day of month
- Maximum amount of balance that is maintained in the account in between 1st and the last of month
- Credit risk management
- Documentation standards
- Review and renewal of advances
- Outstanding balances in deposit accounts
- Corporate banking
- Rural banking
- Retail banking
- Micro finance
- The priests and worship places of public deposits
- Goldsmith receipts
- Bonds issued by the British Government in India
- Bank notes issued by Bank of Venice
- Providing transaction services
- Intermediation in financial services
- Providing transformation services
- Regulating the issue of bank notes.
- Maintenance of foreign currency
- Evaluating the need of the customers
- Maintenance of SLR and CRR
- Meet the technological revolution
- Cash balances with other banks
- Fixed deposits of customers
- Savings deposits
- Recurring deposits
- Depreciation on bank's property
- Interest on inter bank borrowings
- Profit on revaluation of investments
- Provisions made on account of write-offs
- State text book printing corporations
- District level housing cooperative societies
- Communist Party of India
- Aravind Samuel, Anurag Deepak and Amarish Sugandhi Jointly
- Simple interest calculated monthly basis
- Simple interest on monthly products basis
- Quarterly compounding
- Interest calculated on daily products basis
1. Term deposits are non-transaction deposits
2. Cheques can be issued on short-term deposits
3. All term deposits are interest bearing deposits
- 1 only
- 2 only
- 3 only
- 1 and 3
- Credit risk management
- Pricing of the credit products
- Appraisal of time and demand deposits
- Documentation standards.
- Working capital management
- Personal educational qualifications
- Financial leverage
- Interest rate risk management
- Current or savings accounts
- Legal services for documentation
- Delivery of loan at promised time period
- Flexibility in prepayment of loan
- Consumer loans are low risk products
- Innovative product development and disbursal
- Increases the subsidiary business of a bank
- Requires less efforts to market retail loan products
- Interest rate
- Maturity of the loan
- Maturity of the deposit
- Quantum of finance
- Strong recovery strategy
- Definite lending limits
- Effective credit process and proposals
- Inadequate risk pricing
1. Speedy transactions and individual approach
2. Involvement of huge amounts
3. Use of expertise of all the banks
- 1 only
- 2 only
- 3 only
- 1, 2 and 3
- Ensuring the compliance of conditions precedent under the loan agreement
- Determining the LIBOR interest rate for each interest rate
- Planning for future syndication of loans
- Receiving notices relating to cancellation of any part of the loan
- Finalization of supply agreement
- Identify the needs of the borrower
- Preparation of information memorandum
- Invite other banks to participate
- SSI is an undertaking in which the investments in fixed assets in plant and machinery does not exceed one million
- Small and medium enterprises both in size and shape are not homogenous in nature
- The small and medium enterprises contribution towards the GDP is nominal
- Small and medium enterprises do not support the large industries.
- 15% of the projected annual turnover, as working capital limit
- 20% of the projected annual turnover, as working capital limit
- 25% of the projected annual turnover, as working capital limit
- 30% of the projected annual turnover, as working capital limit
- Waiver of penal interests
- Funding by sanctioning of term loans towards the unpaid installments of loans
- Grant of additional working capital loans
- Not demanding the promoters contribution towards the rehabilitation package
- Industrial finance
- Microfinance
- Rural finance
- Consortium finance
- Credit balances outstanding in cash credit accounts
- Credit Card receivables
- Hire purchase receivable
- Mortgage in lieu of future payments
