EXCELLENCE IN ALL SUBJECTS “GAYATRI KRIPA” (ESTD.

1980)

(ECONOMICS) (M) 9825150943 / 9727931689

For 11th/12th Com. (EM) F.Y.B.COM S.Y.B.COM T.Y.B.COM.
NIZAMPURA: 301,LAKULESH AVENUE, Opp. Hanumanji Temple, Near Arpan Complex, Nizampura,Vadodara-2.

Study Note: 13R F.Y.B.COM/Ist Sem./ESB

UNIVERSITY MID SEM PAPERS

ESSENTIAL SKILLS OF BANKING
MID SEM PAPER – 1 – 24/01/2024
1. __________ is primarily meant for developing the habit of savings among the people.
(a) Current Deposit (b) Fixed Deposit (c) Saving Deposit (d) Term Deposit
2. ____________ Facility is self-liquidating with the realization of bills purchased/discounted
for the borrower. (a) Finance (b) Bill (c) Discount (d) Bill Finance
3. Internet Banking refers to
(a) Web-based operation of an account (b) Opening of an account through ATM
(c) Both A & B (d) None of the above
4. Which type of deposit account generates a higher rate of interest?
(a) Current Account (b) Saving Account (c) Fixed Deposit (d) None of the above
5. Which of the following is not covered under the structure of Indian Banking System?
(a)Nationalized Banks (b) Regional Rural Banks
(c) Cooperative Banks (d) Chits and Money lenders
6. What is the full form of NBFC?
(a) Non-Bank Financial Competition (b) Non-Bank Foreign Company
(c) Non-Banking Financial Company (d) Non-Banking Finance Corporation
7. Which bank is known as Banker’s Bank?
(a) RBI (b)SBI (c) PNB (d)NABARD
8. Regional Rural Bank was established in the year –
(a) 1969 (b) 1972 (c) 1973 (d) 1975
9. Which of the following is not a function of a Bank?
(a) To accept deposits (b) To remit funds
(c) To grant advances (d) To supply input to farmers
10. Default in timely repayment of loans results into –
(a) Good reputation (b) No tension
(c) Easily availability of loan in future (d) Lower CIBIL Score
11. An activity of accepting, for the purpose of lending or investment, of deposits of money
from the public is included in
(a) Insurance (b) Saving (c) Investment (d) Banking
12. In which section the use of words like “Bank”, “Banker”, or “Banking Company” are
mentioned? ‘
(a) Section 5 (b) Section 5b (c) Section 7 (d) Section 35
13. Functions like: Accepting Deposits and Advancing Loans are included in which of the
following functions of a bank?
(a) Secondary Function (b) Primary Function (c) Other Functions (d) Both A & B
14. Primarily, who is considered as a “Customer” for the bank?
(a) A person has a Demat account (b) A person has a bank account
(c) A person visits the branch for any other purposes
(d) A person who has no regular dealings with a particular bank
15. In which of the following section/s of the Banking Regulation Act, 1949 clarifies that the
term “Customer” includes a Government department and a Corporations incorporated
by or under any law?
(a) Section 5 (b) Section 45-Z (c) Section 5bb (d) Section 10
 -2- F.Y.B.COM/Ist SEM./ESB

16. ________________ is a big component of CASA deposits for Public, Private, and Cooperative
Banks. (a) Current deposit (b) Saving deposit (c) Fixed deposit (d) Recurring deposit
17. Advances, Bill Finance Facility, and Overdraft Facilities are rendered under .
(a) Liability Products (b) Third Party Products (c) Asset products (d) All of the above
18. What are the challenges faced by the Traditional Banking System?
(a) Excess of loans (b) Neglected staff
(c) Human Resource excessiveness (d) All of the above
19. Who holds money or valuable assets and performs certain functions on behalf of the
beneficiary? (a) Debtor (b) Trustee (c) Agent (d) Creditor
20. What is the full form of NEFT____________.
(a) National Electronic Fund Transfer (b) Neutral Electronic Fund Transfer
(c) Nominal Electronic Fund Transfer (d) Natural Electronic Fund Transfer
21. “When the Banker receives deposits from the customer, here the Banker becomes?
(a) Debtor (b) Creditor (c) Bailee (d) Trustee
22. The services rendered by a banker as an agent of his customers, this service is known as
(a) Principal Services (b) Agency Services
(c) General Utility Services (d) Social Services
23. Which one of the following is a savings bank account opened with a commercial bank
with zero balance?
(a) Current Account (b) No Frill Account
(c) Savings Bank Account (d) Student Savings Bank Account
24. The banking industry falls under which of the following sectors?
(a) Industrial Sector (b) Service Sector .
(c) Manufacturing Sector (d) None of the above
25. Liability Products mainly include _________________ products.
(a) Marketing Products (b) Retail Products
(c) Deposit Products (d) Credit Card Products
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♣ MULTIPLE CHOICE QUESTIONS: (UNIT-I)
1. Which type of Relation between Banker & Customer.
(a) Agent (b) Debtor – Creditor (c) Trustee (d) None
2. B A N C – word for Bank in which language.
(a) German (b) Italian (c) French (d) Greek
3. In the full form of B A N K – ‘K’ stands for:
(a) Knowledge (b) Caring (c) King (d) Coding
4. RBI establish under which act:
(a) RBI Act 1944 (b) RBI Act 1924 (c) RBI Act 1934 (d) None
5. RBI commenced operation in ______________.
(a) 1st April 1935 (b) 1st April 1934 (c) 1st January 1935 (d) None
6. Central Bank perform which Government Role:
(a) Issue of currency (b) MANAGING Government Accounts
(c) Both (a) & (b) (d) None of the above
7. How many are Regional Rural Banks in India? (a) 26 (b) 61 (c) 82 (d) 41
8. How many are Foreign Banks in India:
(a) 4 (b) 41 (c) 13 (d) 20
9. In which Banks Government hold more than 50% of the total stocks.
(a) Public Sector Bank (b) RRB (c) SBI (d) RBI
10. Imperial Bank of India converted in State Bank of India in the _______ year.
(a) 1945 (b) 1965 (c) 1955 (d) 1935
11. In which year 14 major Commercial Banks Nationalised?
(a) July 29, 1979 (b) June 09, 1969 (c) July 19, 1969 (d) June 19, 1969
12. How many Banks Further Nationalise in 1980.
(a) Six (b) Seven (c)Fourteen (d) Twenty
13. Which Public Sector Financial Institutions included in the category of Public Sector
Banks. (a) HDFC (b) IDBI (c) ICICI (d) Kotak
14. Under which ordinance, Regional Rural Banks were established in India?
(a) 26th September 1995 (b) 26th January 1975
(c) 26th January 1976 (d) 26th September 1975
 -3- F.Y.B.COM/Ist SEM./ESB

15. A ________ holds money or Assets & Perform certain function for the benefit of same
person called beneficiary.
(a) Trustee (b) Agent (c) Creditor (d) Debtor
16. Out of Five Associate Bank, SBI holds __________%.
(a) 75% (b) 92% (c) 33% (d) 100%
17. SBI shareholding is __________% in State Bank of Bikaner & Jaipur & State Bank of
Travancore. (a) 75% (b) 50% (c) 95% (d) 100%
18. In which year RBI issued guidelines to set up New Private Banks in India?
(a) 1983 (b) 1973 (c) 1993 (d) 2001
19. For the licensing of New Banks in the Private Sector RBI issued new rules in _______
year. (a) January 2001 (b) June 2001 (c) January 2005 (d) February 2005
20. In which year RBI released fresh guidelines on ownership & governance in private
sector banks.
(a) 28/01/2005 (b) 28/02/2005 (c) 28/03/2001 (d) 28/01/2001
21. Aggregate foreign investment in Private Banks from all sources cannot exceed _____%
of the paid up capital.
(a) 100% (b) 50% (c) 74% (d) 10%
22. UCB – stands for: (a) Urban Co-operative Board (b) Union Club Benefit
(c) Upper Class Bank (d) Urban Co-operative Bank
23. At the end of March 2011 how many are the Rural Co. Op. Credit Institutions:
(a) 93814 (b) 94531 (c) 93413 (d) 697
24. How many UCB at the end of March 2012.
(a) 1566 (b) 1548 (c) 1618 (d) 717
25. In which region of India, Unitary Structure exist to provide credit directly to Primary
credit societies. (a) North – Eastern Region (b) North – Western
(c) South – Eastern region (d)Eastern – Western region
26. Total Co-Operate Banks in India at March 2021 was:
(a) 96508 (b) 95509 (c) 94531 (d) 98042
27. Scheduled Urban Co-Operative Banks at March 2021.
(a) 53 (b) 52 (c) 25 (d) 27
28. In India as on March 2021. How many PACs are?
(a) 96508 (b) 98042 (c) 95509 (d) 94531
29. Total USB in India during March 2021.
(a) 1534 (b) 1548 (c) 1566 (d) 1481
30. Non – scheduled Urban Co-Op. Banks on March 2011.
(a) 1534 (b) 1548 (c) 1566 (d) 1481
31. B A N C O word for Bank used at __________ language.
(a) French (b) Italian (c) German (d) Indian
32. Definition of BANK have been given in ___________ Act.
(a) RBI Act 1934 (b) Banking Regulation Act 1949
(c) Negotiable Instrument Act 1881 (d) All of the above
33. Definition of Banking given by: (a) John Paget (b) John Manyard Keynes
(c) John Kennedy (d) John Abraham Lincon
34. In the full form of BANK – term ‘N’ stands for:
(a) Notes (b) Nice (c) Negotiating (d) Numbers
35. “NHB” stands for:(a) National Housing Bank (b) National Housing Board
(c) New Housing Board (d) National Head Bench
36. At present how many Public Sector Banks in India. (a) 20 (b) 6 (c) 26 (d) 61
37. Under Non-scheduled Banks, how many are local area banks?
(a) Three (b) Four (c) Five (d) Six
38. Which section of Banking Regulation Act 1949 clarifies that ‘customer’ includes a
Government & a corporation incorporated under any law.
(a) 45 – a (b) 45 – z (c) 5(b) (d) 35
39. The word BANAVE for Bank given in which language.
(a) German (b) Italian (c) French (d) Dutch
40. Commercial Banks in India are divided into _______.
(a) Two (b) Three (c) Four (d) Five

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 -4- F.Y.B.COM/Ist SEM./MCQ/ESB

BANKING PRODUCT & SERVICES(UNIT – II)

1. The initiative of Banks to create recall for the product is termed as __________.
(a) Grading (b) Branding (c) Ranking (d) Dancing
2. How many types of Branding Bank basically used?
(a) Two (b) Three (c) Four (d) Five
3. Which branding of Bank intended to create recall about the Bank itself.
(a) Price Branding (b) Product Branding
(c) Corporate Branding (d) All of the above
4. Deposit products of a Bank also known as:
(a) Services (b) Retail credit product
(c) Asset product (d) Liability product
5. Retail credit product also known as:
(a) Liability Product (b) Asset Products (c) Service Product (d) Mixed Product
6. In the product deposit category, the product can be classified in to __________category.
(a) Two (b) Three (c) Four (d) Five
7. Non – Fund based business of the Bank consist of:
(a) Bank Guarantee (b) Letter of credit (c) Co-acceptance of Bills (d) All of the above
8. Under which loan bank having high credit risk:
(a) Personal loan (b) Gold Loan (c) Secured loan (d) Car loan
9. Which type of advances depend on customer integrity, high business reputation &
capacity to manage the business.
(a) Gold loan (b) Unsecured loan (c) Car loan (d) Secured loan
10. The confidence of customer can be judged by:
(a) Three ‘D’ (b) Three ‘B’ (c) Three ‘ C’ (d) Three ‘M’
11. What are three considerations to judge the confidence of customer.
(a) Care, Capacity, Capital (b) Character, Capacity, Capital
(c) Capital, Care, Curiosity (d) Character, Capacity, Calm
12. Which type of the loan covers marriage expenses, education expenses, and medical
expenses: (a) Gold loan (b) Home loan (c) Personal loan (d) Car loan
13. Which deposits have flexibility with respect of amount payable every month:
(a) Savings Bank (b) Fixed Deposit (c) Current Deposit (d) Recurring Deposits
14. Broad retail deposit, low cost deposit & shore up earning are the characteristics of:
(a) Fixed Deposit (b) Saving Bank Deposit (c) Recurring Deposit (d) None
15. Under which type of deposit option is open to receive interest at maturity/monthly/
quarterly / half yearly.
(a) Recurring (b) Savings (c) Fixed (d) Term Deposit
16. What is another name of Demand Deposits of Commercial Bank?
(a) Current Account (b) Savings Account (c) Both (a) & (b) (d) None of the above
17. Current account are most suitable to:
(a) Business (b) Trading (c) Joint Stock Companies (d) All of the above
18. “NIM” stands for: (a) Non Interest Money (b) Net Interim Margin
(c) Net Interest Money (d) Net Interim Margin
19. Deposit for 12 months or more should be term as:
(a) Fixed Deposit (b) Current Deposit (c) Recurring Deposit (d) Savings Deposit
20. The deposits which are not withdrawn on maturity date are known as:
(a) Over Maturity Deposit (b) Overnight Deposit
(c) Overdue Deposit (d) Over Withdrawn Deposit
21. Secured loan under asset product loans consists of:
(a) Home loan (b) Car loan (c) Construction loan (d) All of the above
22. Business loan, Bank overdraft, consumer durable lending are the examples of:
(a) Unsecured loan (b) Secured loan (c) Flexi-loan (d) All of the above
23. Secured Advances / Secured loan are defined under __________ section of Banking
Regulation Act 1949. (a) 5(a) (n) (b) 5 (ii) (d) (c) 5 (i) (n) (d) 5 (cc)
24. What are two essential features of secured loan?
(a) Advance must be against tangible security
(b) Market value of security must not be less than amount of loan granted
(c) Both (a) & (b) (d) Any one (a) or (b)
 -5- F.Y.B.COM/Ist SEM./MCQ/ESB

25. Under which type of loan price is structured by considering manufacturer pricing,
dealer margin & volumn of sales.
(a) Personal loan (b) Car loan (c) Housing loan (d) Business loan
26. ‘NBFC’ stands for:
(a) Non Banking First Chance (b) Non Bulk Finance Companies
(c) Non – Banking Finance Companies (d) None
27. Two wheeler financing is taken care by:
(a) RBI (b) RRB (c) NABARD (d) NBFC
28. Banks provide Gold Loan which Gold loan upto ___________%
(a) 60% (b) 70% (c) 80% (d) 90%
29. While granting Gold loan which gold carats areconsidered?
(a) 18 – 24 carats (b) 18 – 22 carats (c) Only 18 carats (d) Only 24 carats
30. Confidence in the Borrower is the basis of ____________ advances.
(a) Term loan (b) Secured loan (c) Unsecured loan (d) Gold loan
31. Under which facility interest is charged for the amount drawn & not for the whole
amount sanctioned.
(a) Credit card loan (b) Bank over draft
(c) Consumer Durable loan (d) All of the above
32. Which loan is granted depending on credit history & annual income?
(a) Business loan (b) Credit card loan
(c) Over draft (d) Consumer durable loan
33. Deposit products are classified into ______________. (a) Two (b) Three (c) Four (d) Five
34. Deposit products are __________.
(a) Savings Account (b) Current Account (c) Terms (d) All of the Above
35. RBI Directives prohibits payment of interest on which account?
(a) Current Account (b) Savings Account (c) Recurring Deposits (d) Fixed Deposits
♣ EXTRA MULTIPLE CHOICE QUESTIONS
1. On which deposits Bankers does not allowed any Interest…
(a) Fixed deposits (b) Saving deposits (c) Current deposits (d) Recurring deposits
2. Current A/c are generally for ______
(a) Business & Profession (b) Individual (c) Household (d) None of above
3. On which deposits Interest rate is higher….
(a) Saving deposits (b) Current deposits (c) Fixed deposits (d) Recurring deposits
4. _____ loans are secured loan
(a) Personal loan (b) Business loan (c) Car loan (d) Durable items loan
5. On which A/c, overdraft facilities available_
(a) Current A/c (b) Saving A/c (c) Fixed deposit A/c (d) Recurring A/c
6. Full form of RTGS ________.
(a) Real Time getting Settlement (b) Real Time Gross Settlement
(c) Road Transport Goods Services (d) Real Time Goods Settlement
7. NEFT Stand as ______
(a) National Electronic Fundamental Test (b) National Electronic Fund Transfer
(c) National Electronic Fund Transfer (d) National Electronic Fund Table
8. Which loan are unsecured ______
(a) Home loan (b) Construction loan (c) B.O.D (d) Gold loan
9. Minimum Term deposit period ____ days.
(a) 7 days (b) 46 days (c) 180 days (d) 210 days
10. For senior citizen interest on Fixed deposits allowed __% higher than general.
(a) 0.25% (b) 0.50% (c) 1 % (d) 2 %
11. Interest Rate ____ if deposits for 14 days.
(a) 3.75% (b) 4.75% (c) 5.75% (d) 6.25%
12. Deposits Fixed sum of Money every month for specific period are known as ____
deposits.
(a) Saving deposits (b) Current deposits (c) Fixed deposits (d) Recurring deposits
13. In SBI, Govt. / RBI hold _____ % share capital. (a) 51% (b) 55% (c) 90% (d) 100%
14. How many Banks under SBI ?
(a) 4 Banks (b) 6 Banks (c) 14 Banks (d) 20 Banks
15. In Nationalized Bank ____ % shares hold by Government
(a) 51% (b) 60% (c) 55% (d) 75%
 -6- F.Y.B.COM/Ist SEM./MCQ/ESB

16. Under Saving / Fixed deposits relationship between Bankers and customer of ____.
(a) Debtors & Creditors (c) Bank & Customer
(b) Credit & Debtors (d) Agent & Customer
17. Main function of Bank are _____
(a) Accepting deposits (b) Giving loan & adv. (c) Both of above (d) None of above
18. RBI Established on ______
(a) 1st April 1935 (b) 1st April 1945 (c) 15th Aug. 1947 (d) 1st Jan. 1949
19. RBI Nationalized on ______
(a) 1st April 1935 (b) 1st April 1945 (c) 15th Aug. 1947 (d) 1st Jan 1949
20. Which of the following not function of RBI.
(a) Regulate Bank in India (c) Granting Loan-Adv.
(b) Crediting CRR/SLR (d) Operating Cash and Credit Policy
21. Bank Nationalized on _______
(a) 19th July 1969 (b) 19th Aug 1947 (c) 16th Dec 1972 (d) 26th Jan 1948
22. How many Banks Nationalized (1st Stage).
(a) 10 Banks (b) 14 Banks (c) 20 Banks (d) 25 Banks
23. Which of the following are the functions of Bank ?
(a) Accepting deposits (c) Agency and Utility function
(b) Granting loan-Adv. (d) All of above
24. Bank deposit product is a _____ product.
(a) Assets Product (b) Liabilities product (c) Service product (d) All of above
25. Which of the following are fees based services…
(a) RTGS (b) NEFT (c) locker’s facility (d) Internet – Banking facility
26. Bank of Baroda / Dena Bank is a _____ Bank
(a) Public Sector Banks (c) Foreign Bank
(b) Private Sector Banks (d) Co-operative Bank
27. HDFC / ICICI is _____ Bank.
(a) Public Sector Banks (c) Foreign Banks
(b) Private Sector Banks (d) Co-operative Bank
28. For small Finance Bank Minimum paid us capital required______.
(a) 10 Crores (b) 50 Crores (c) 100 Crores (d) 500 Crores
29. Customer deposited securities or value able with Bank, Banker Act as____
(a) Debtors (b) Creditors (c) Trustee (d) Agent
30. Bank Act as ____ when it purchase and sell securities for customer
(a) Trustee (b) Agent (c) Debtors (d) Creditors
31. Payment Banks are authorised by RBI in _____.
(a) Nov 2010 (b) Nov 2014 (c) Nov 2020 (d) Nov 2022
32. Car loan is a ____ Type of loan
(a) Secured loan (b) Unsecured loan (c) Personal loan (d) Cash Credit
33. For purchase of New Car, generally ____ % of value of Car loan granted,
(a) 70% (b) 80% (c) 85% (d) 90%
34. Age criteria for getting personal loan ______.
(a) 21 and above (b) 30 and above (c) 18 and above (d) 60 and above
35. Repayment period of personal loan Maximum _____ years.
(a) 2 years (b) 3 years (c) 4 years (d) 5 years
36. Maximum Amount of personal loan ______
(a) 50000 (b) 1 lakh (c) 2 lakhs (d) 5 lakhs
37. For studies in India, maximum education loan allowed ____
(a) 5 days (b) 10 lakhs (c) 15 days (d) 20 lakhs
38. For studies in Abroad, maximum education loan allowed ______.
(a) 5 lakhs (b) 10 lakhs (c) 20 lakhs (d) 30 lakhs
39. Repayment period of education loan _____ years.
(a) 5 years (b) 7 years (c) 10 years (d) 15 years
40. Generally, No. of withdrawal permitted in saving A/c are ____ per half year.
(a) 50 (b) 75 (c) 100 (d) No limit
41. Generally, Nos. of withdrawal permitted in current A/c are_____.
(a) 50 (b) 75 (c) 100 (d) No limit
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42. Minimum Balance required in Saving A/c with cheque Book _____Rs.
(a) Rs.250 (b) Rs.500 (c) Rs.2500 (d) Rs.5000
43. Minimum Balance in Saving A/c in case of mechanized Bank Rs.____
(a) Rs.500 (b) Rs.1000 (c) Rs.5000 (d) Rs.10000
44. In private Bank minimum Balance in Saving A/c Rs. _____.
(a) Rs.1000 (b) Rs.5000 (c) Rs.10000 (d) Rs.1500
45. Minimum paid up capital of small finance Bank____.
(a) 100 crores (b) 200 crores (c) 500 crores (d) 1000 crores
46. The A/c in which fixed sum deposited every month for decided time period are known
as_(a) Saving deposits (b) Fixed deposits (c) Recurring deposits (d) Current deposits
47. Current A/c are for ____
(a) Household a/c (b) Business & Profession (c) Individual (d) Salary person
48. Housing loan allowed for maximum period ___years
(a) 20 years (b) 15 years (c) 10 years (d) 5 years
49. Minimum amount of housing loan ___
(a) 5 lakhs (b) 10 lakhs (c) 20 lakhs (d) 30 lakhs
50. Maximum amount of housing loan_____
(a) 30 lakhs (b) 50 lakhs (c) 75 lakhs (d) No limit
51. Financial institutions are also known as _______________.
(a) Financial organisation (b) Financial intermediaries
(c) Financial system (d) Any of the above
52. ______________ allocates saving efficiently in an economy to ultimate users either for
investment in real assets or for consumption.
(a) Economic system (b) Banking system (c) Financial system (d) Market system
53. Which of the following is not a regulatory institution in Indian financial system?
(a) RBI (b) CIBIL (c) SEBI (d) IRDA
54. National Housing bank is a fully owned subsidiary of __________.
(a) HDFC (b) HSBC (c) RBI (d) HUDCO
55. _____________ is regarded as a queen of Indian financial system.
(a) SEBI (b) RBI (c) Finance Ministry (d) BSE
56. What is the full form of NBFC?
(a) Non- Bank Financial Competition (b) Non- Bank Foreign Company
(c) Non- Banking Financial Company (d) Non- Banking Finance Corporation
57. Urban Cooperative Banks are also called as?
(a) Short term co-operatives (b) Secondary Cooperative Banks
(c) Primary Cooperative Banks (d) Long term co-operatives
58. Which of the following is not an asset held by Commercial Banks?
(a) Bills of Exchange (b) Current Account Deposits
(c) Money Lent at Short Notice (d) Credit Balance with the Reserve Bank
59. Which of the following combination is correct?
(a) NABARD--------- Industrial Loan (b) RBI ------------ Long Term Finance
(c) RRB ------------ Agriculture Finance (d) IDBI ----------- Short Term Loans
60. Which of the following is not an organized sector in India?
(a) Nationalized Banks (b) Regional Rural Banks
(c) Cooperative Banks (d) Chits and Money Lenders
61. At which of the following cities is the Head Office of Reserve Bank of India located?
(a) Mumbai (b) New Delhi (c) Kolkata (d) Dehradun
62. “Scheduled bank” in India means a bank ________.
(a) Incorporated under the Companies Act, 1956
(b) Authorized to the Banking business
(c) Governed by the Banking Regulations Act, 1949
(d) Included in the Second schedule to the Reserve Bank of India Act 1934
63. Co-operative Societies Act was enacted in which year?
(a) 1962 (b) 1949 (c) 1935 (d) 1913
64. With whom does the ownership of public sector banks rest?
(a) Government of India
(b) Jointly with Government of India and share-holders from the public
(c) Jointly with Government of India and State Bank of India
(d) Jointly with Government of India and Reserve Bank of India
 -8- F.Y.B.COM/Ist SEM./MCQ/ESB

65. In which year was the Banking Regulation Act passed?

(a) 1949 (b) 1955 (c) 1959 (d) 1969
66. When did the National Bank of Agriculture and Rural Development establish?
(a) July, 1982 (b) July, 1969 (c) June, 1951 (d) June, 1961
67. Which of the following is the apex institution which handles refinance for agriculture
and rural development in India?
(a) RBI (b) SIDBI (c) NABARD (d) RBI
68. Which is the largest commercial bank in India?
(a) Bank of India (b) Axis Bank (c) State Bank of India (d) HDFC
69. In which year was the Bank of Maharashtra established.
(a) 1937 (b) 1935 (c) 1934 (d) 1949
70. “Repo Rate” refers to the rate at which
(a) RBI borrows short term money from the markets
(b) Banks keeps the money with RBI
(c) Bills are discounted by RBI (d) Forex purchased by RBI
71. Which of the following is not a function of a Bank?
(a) To accept deposits (b) To waive loans
(c) To grant advances (d) To supply input to farmers
72. Headquarters of National Housing Bank is located at:
(a) Hyderabad (b) Lucknow (c) Mumbai (d) New Delhi
73. How many developments banks are there in India?
(a) 5 (b) 6 (c) 7 (d) 8
74. In which schedule are the scheduled banks of India listed in the RBI Act, 1934?
(a) 1st (b) 2nd (c) 3rd (d) 4th
75. What is the main business of commercial banks?
(a) Lending and deposits from public (b) Lending and deposits from cooperation
(c) Both a and b (d) None
76. Which of these banks are not-for-profit banks owned by the depositor?
(a) Cooperative Banks (b) Merchant Bank (c) Land Banks (d) None of the above
77. Which bank is known as banker’s bank?
(a) RBI (b) SBI (c) PNB (d) NABARD
78. NBFIs refers to _____________.
(a) Non-Banking Financial Industries (b) Non-Banking Financial Institution
(c) Net Banking Financial Industries (d) Net Banking Financial Institutions
79. RBI Act was coming in to existence _____________.
(a) 1934 (b) 1935 (c) 1948 (d) 1945
80. When a deposit of money is received by the banker, the customer becomes the _____?
(a) Creditor (b) Debtor (c) Receiver (d) Customer
81. Which bank is called lender of last resort?
(a) Commercial bank (b) Agricultural bank
(c) Industrial bank (d) Central bank
82. Which bank enjoys monopoly power of Note issue?
(a) NABARD (b) Commercial Bank (c) Central Bank (d) None of these
83. Which is considered as the mother of all Central Banks?
(a) Bank of England (b) Risks Bank of Sweden
(c) Federal Reserve Bank (d) Reserve Bank of India
84. Regional Rural Banks were established in the year –
(a) 1969 (b) 1972 (c) 1973 (d) 1975
85. Which of the following is true about non-scheduled banks in India?
(i) A non-scheduled bank does not have to maintain CRR with the
(ii) Also, it cannot lend money from RBI.
(iii) The banks named under third schedule of RBI Act 193, are non-scheduled
banks
(a) Only i and iii are true (b) Only ii and iii are true
(c) Only i and ii are true (d) All are true
86. Which is the first Regional Rural Bank in India?
(a) Saurahtra Grameen Bank (b) Prathama Grameen Bank
(c) Pallavan Grama Bank (d) Santagati Grameen Bank
 -9- F.Y.B.COM/Ist SEM./MCQ/ESB

87. Which is not a function of RBI?

(a) Holding cash reserves of all commercial banks and make available financial
accommodation to them
(b) Assuming responsibility of al banking operations of the government.
(c) Assuming the responsibility of the statistical analysis of data related to macro
economy of India
(d) Assuming the responsibility to meet directly or indirectly all reasonable
demands for the accommodation
88. In India the Commercial Banks are given license of operation by:
(a) The Govt. of India (b) The Ministry of Finance
(c) Reserve Bank of India (d) Banking Companies Regulation Act, 1949
89. The Reserve Bank of India was established on ____________.
(a) April 1, 1935 (b) July 12, 1982
(c) May 26, 2006 (d) September 30, 2005
90. RBI Provides the ways and means advances to whom?
(a) Central Government (b) State Government
(c) Commercial Banks (d) All of these
91. Which of the following Governor of RBI also served as the Finance Minister of India?
(a) Pranav Mukherjee (b) Amitabha Ghosh
(c) Sir Bengal Rama Rau (d) Shakti Kanta Das
92. Which among the following would not help RBI to control the inflation in the country?
(a) Increase in Reserve Ratio Requirements (b) Increase in Bank Rate
(c) Purchase of securities in open market (d) Increase in Repo Rate
93. How many zonal training centers of RBI are there in India?
(Mumbai, Chennai, Kolkata, New Delhi)
(a) 2 (b) 3 (c) 4 (d) 5
94. In which year the nationalization of RBI was occurred?
(a) 1947 (b) 1949 (c) 1951 (d) 1953
95. The logo of RBI consists of which animal?
(a) Elephant (b) Panther (c) Black Buck (d) Lion
96. Who was the first Governor of RBI?
(a) David Warner (b) Sir Phillip Smith (c) James Watson (d)Sir Osborne Smith
97. Which statement is not true regarding RBI?
(a) It is the Central bank of India (b) It was established in 1935
(c) It can issue currency notes (d) Personal account can be opened in RBI
98. Which of the following is/are the Quantitative instrument of RBI?
(a) CRR (b) Bank Rate Policy (c) SLR (d) All of these
99. Which of the following coins is not issued by the RBI?
(a) Rs. 1 (b) Rs. 2 (c) Rs. 5 (d) Rs.10
100. Which of the following factors is/are considered by the RBI to determine the number
of notes to be issued by it?
(a) GDP Growth (b) Inflation (c) Replacement of soiled banknotes (d) All of these
101. India is a member of international Monetary Fund since _____________.
(a) 1934 (b) 1935 (c) 1945 (d) 1949
102. Who works as RBI’s agent at places where it has no office of its own?
(a) State Bank of India (b) Ministry of Finance
(c) Government of India (d) International Monetary Fund
103. Who mints the coins in India?
(a) Ministry of Finance (b) Reserve Bank of India
(c) Prime Minister’s Office (d) Commerce and Industry Ministry
104. RBI known as lender of last resort because:
(a) It has to meet the credit need of citizens to whom no one else is willing to lend
(b) Banks tends to go to RBI as a last resort
(c) It comes to help banks in times of crisis
(d) All of the above
105. On which commission’s recommendations; Reserve Bank of India was established?
(a) Chamberlain Commission (b) Hilton Young Commission
(c) Keynes Commission (d) None of the above
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106. Which of the following is not the work of RBI?

(a) Bank of the banks (b) Credit controller (c) Custodian of foreign currency
(d) Allocating funds directly to the farmers for agricultural development
107. How long does the accounting year of the Reserve Bank of India come from?
(a) State Bank of India (b) Ministry of Finance
(c) Government of India (d) International Monetary Fund
108. What happens when CRR is increased?
(a) It decreases money supply (b) It increases demand for money
(c) It decreases inflation (d) All of the above
109. Which of the following counts under SLR?
(a) Cash in hand (b) Gold owned by the banks
(c) Balance with RBI (d) All of the above
110. What do we call the rate at which the Reserve Bank of India lends money to
commercial banks?
(a) Repo rate (b) Reverse Repo Rate (c) CRR (d) SLR
111. Who is the chairperson of the Monetary Policy committee of India?
(a) Finance Minister (b) Prime Minister
(c) RBI Governor (d) Chief Economic Advisor
112. Which type of bank account typically earns interest and allows limited withdrawals?
(a) Saving account (b) Checking account
(c) Certificate of Deposit (CD) (d) Money Market Account
113. Which of the following is a characteristic of a secured loan?
(a) Higher interest rates (b) No collateral required
(c) Lower risk for the lender (d) Flexible repayment terms
114. What is the primary purpose of a mortgage loan?
(a) Buying a car (b) Financing education
(c) Purchasing a home (d) Starting a business 1
115. In a fixed – rate loan, what remains constant throughout the loan term?
(a) Interest rate (b) Loan amount (c) Monthly payments (d) Loan term
116. Which term refers to the initial payment made by the borrower when obtaining a
home loan?
(a) Principal (b) Down payment (c) Interest (d) Escrow
117. What is the purpose of a car loan?
(a) Financing a home purchase (b) Funding education expense
(c) Buying a car (d) Starting a business
118. What is the primary purpose of a current account?
(a) Long term savings (b) Earning interest on deposit
(c) Everyday transactions and payments (d) Fixed term investments
119. What is the risk for lenders associated with unsecured loans?
(a) Risk of borrower default (b) Risk of market fluctuations
(c) Risk of inflation (d) Risk of interest rate of co-signer
120. Which type of bank account typically earns interest and allows limited withdrawals?
(a) Savings account (b) Checking account
(c) Certificate of Deposit (d) Money Market Account
121. As per _________ of the Banking Regulation Act, 1949, “banking” means the accepting,
for the purpose of lending or investment, of deposits of money from the public,
repayable on demand or otherwise and withdraw able by cheque, draft, order or
otherwise.
(a) Sec – 5(b) (b) Sec – 5(a) (c) Sec – 6 (a) (d) Sec – 6(b)
122. Therefore, to constitute customer, the following two conditions are to be satisfied:
(a) He must open an account with the Bank to have a dealing with the Bank
(b) The nature of such dealing must be a form of a banking transaction
(c) Must have ATM card
(d) Both a and b
123. “Customer” includes a Government department and a corporation incorporated by or
under any law as per which section of banking Act?
(a) Sec – 7 (b) Sec 5(a) (c) Sec 6(a) (d) Sec 45-z
124. How many banks were nationalized in India in the year 1969?
(a) 12 (b) 29 (c) 14 (d) 6
 -11- F.Y.B.COM/Ist Sem./ESB/MCQ

125. Imperial Bank of India was nationalized in which year?

(a) 1945 (b) 1955 (c) 1949 (d) 1965
126. When were the banks nationalized in our country?
(a) On 1st July 1965 (b) On 19th July 1969
(c) On 19 July 1969 and 15 April 1980 (d) On 16th April 1980 and 1st July 1965
th th

127. What is the number of nationalized banks in India?

(a) 20 (b) 28 (c) 27 (d) 19
128. In April 1980, banks were nationalized in India?
(a) 3 (b) 5 (c) 6 (d) 7
129. Which nationalized bank was merged with Punjab National bank in 1993?
(a) Punjab and Sind Bank (b) Ludhiana Area Bank
(c) Majha United Bank (d) New Bank of India
130. Bank does not give loan against
(a) Gold Ornaments (b) LIC policy (c) Lottery ticket (d) NSC
131. Bank having maximum number of branches in India.
(a) Reserve Bank of India (b) State Bank of India
(c) Punjab National Bank (d) Bank of Baroda
132. ATM password to be shared only with:
(a) Spouse (b) Obedient son (c) Obedient daughter (d) None of above
133. 100/- rupee note is signed by:
(a) Prime Minister (b) Finance Minister (c) RBI Governor (d) None of above
134. KYC means: (a) Know your customer b) Know your character
(c) Both of above (d) None of above
135. Loans from money lenders are:
(a) With High rate of interest (b) No proper accounting
(c) No transparency (d) All of above
136. ATM means: (a) Any Time Money (b) Auto Truck of Mahindra
(c) Automated Teller Machine (d) None of above
137. Minimum age required to open Saving account in the bank.
(a) 8 years (b) 10 years (c) 12 years (d) None of above
138. Timely repayment of loans results:
(a) Good reputation (b) No tension
(c) Easily availability of loan in future (d) All of above
139. Defaulter of loan means:
(a) Not paying loan installments (b) Bad reputation
(c) Illegal activities (d) None of above
140. Which is prohibited for writing on currency notes?
(a) Political message (b) Religious message
(c) personal message (d) All of above
141. Highest denomination of currency notes issued by RBI is:
(a) Rs. 100/- (b) Rs. 500/- (c) Rs. 1000/- (d) Rs. 10,000/-
142. PAN means: (a) A kind of utensil (b) Primary Account Number
(c) Permanent Account Number (d) None of above
143 E or S means:
(a) East or south zone (b) Easy and Swift (c) Either or Survivor (d) None of above
144. Gold and Silver ornaments should be kept in bank lockers:
(a) It is safe (b) No risk of theft (c) Both (a) & (b) (d) None of above
145. Currency notes are issued by:
(a) RBI (b) NABARD (c) Public sector banks (d) Central Government
146. Coins are issued by:
(a) Government of India (b) NABARD
(c) Public sector banks (d) State Bank of India
147. Bank passbook is:
(a) Issued by Bank (b) Contains transaction details of Bank account
(c) Shows balance in account (d) All of above
148. Banks pays interest on:
(a) Deposits (b) Loans (c) Both (a) & (b) (d) None of above
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149. Bank charges interest on:

(a) Deposits (b) Loans (c) Both (a) & (b) (d) None of above
150. Education loans:
(a) Cover tuition fee & expenses (b) Are repayable after completion of course
(c) Granted for studies in India & abroad (d) All of above
151. Nomination once done can:
(a) Not be cancelled (b) Be cancelled (c) Not be changed (d) None of above
152. Bank draft is issued by:
(a) Private sector banks (b) Regional Rural Banks
(c) Public Sector Banks (d) All of above
153. ATM can be used for:
(a) Cash withdrawal (b) Account enquiry
(c) Statement of account (d) All of above
154. While making nomination, signature of nominee is required on:
(a) Account Opening Form (b) Nomination form
(c) Affidavit (d) None of above
155. Interest on Savings Bank Deposits is paid:
(a) Every month (b) Quarterly (c) Half yearly (d) Yearly
156. Fixed Deposit can:
(a) Not be withdrawn before maturity (b) Paid only after maturity
(c) Withdrawn before maturity (d) All of above
157. Interest on FDRs is compounded on:
(a) Monthly basis (b) Quarterly basis (c) Half yearly basis (d) Yearly basis
158. Who can open Bank account?
(a) Indian citizen (b) non-Resident Indian (c) Illiterate (d) All of above
159. In Recurring Deposits:
(a) A fixed sum is deposited every month (b) Period of deposit is a fixed tenure
(c) Interest is paid at FDR rate (d) All of above
160. Who can open an account under PMJDY? (Age group 18 to 59)
(a) Minor above the age of 10 – year (b) Only lady of the house
(c) Only head of the family (d) All of above
161. Which type of deposits earns higher interest rate?
(a) Current account (b) Savings account (c) Fixed deposits (d) None of above
162. What kinds of services are available free in ‘Basic Savings Bank Deposit Account’?
(a) Receipt / credit of money through NEFT / RTGS
(b) No annual maintenance charges on ATM –cum-Debit card
(c) 4 withdrawals in a month (including ATM withdrawals)
(d) All of above
163. Which type of deposits earns higher interest rate?
(a) Current account (b) Savings account
(c) Fixed deposits (d) None of above
164. Can illiterate person be issued debit card:
(a) No (b) Yes
(c) Only in case of joint account (d) Only in case he is head of family
165. What is validity period of cheque?
(a) 4 months from date of issue (b) 3 months from date of issue
(c) 1 month from date of issue (d) Unlimited

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F.Y.B.COM/Ist SEM/ESB/MID SEM /2024-25