Banking Questions and Answers with Fundamentals to Know. Series-38

BC / BF EXAM (IIBF) Series -38 (PROBABLE QUESTIONS AND ANSWERS)

Chapter-13; Overview of the Financial Market;

1. IRDAI regulates ____________sector.

A.      Banking

B.      Insurance

C.      Pension

D.      Capital Market

2. A______________is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments and/or other securities.

A.      insurance policy

B.      net asset value

C.      mutual fund

D.      bank deposit

3. Insurance to protect the economic value of assets is referred as _____________

A.      Life insurance

B.      Non-life insurance

C.      Accident insurance

D.      none of the above

4. In financial market 'Securities' refer to________

A.      shares/bonds/debentures                                                       

REASONING

B.      cash/bank/deposits

C.      livestock/commodities/mutual funds

D.      cash/bank deposits/insurance policy

5. Banks need to maintain a certain percentage of their Demand and Time liabilities with the Reserve Bank India compulsorily. This is referred as _________________

A.      Statutory Liquidity Ratio(SLR)

B.      Cash Reserve Ratio(CRR)

C.      Current Ratio

D.      Credit Deposit Ratio (CD Ratio)

6. Financial System includes _________________

A.      Central Banking Authority

B.      Capital Markets Regulatory Authority

C.      Insurance and Pension Regulators

D.      All of These

7. Central Bank prescribes No ___________ can operate without having a valid license from central banking authority.

A.      NBFC

B.      Primary Dealers

C.      Financial Institutions

D.      Co-operative Banks

8. Reserve Bank of India acts as the lender of the last resort to banks through ______________

A.      SLR

B.      CRR

C.      REPO

D.      NBFC

9. Which of these do NOT come under the category of Management of Government Debt?

A.      price discovery

B.      tenure of debt

C.      volume to be raised

D.      meet short term liquidity

10. Which of these regulatory authorities controls and supervises capital markets in the country?

A.      IRDAI

B.      SEBI

C.      PFRDA

D.      RBI

Chapter-14; Financial Inclusion And Banking For The Unbanked

1. A major technological development in banking sector is the adoption of the _______________.

A.      CTS (cheque truncation system)

B.      NEFT (electronic funds transfer)

C.      CBS (core banking solution)

D.      ECS (electronic clearing service)

2. The following are a few of the root causes that prevent banks from reaching out to the poor. Choose the incorrect statement.

A.      high transaction cost in banks

B.      poor credit discipline in rural areas, making credit monitoring by banks more difficult

C.      poor deposit base in the rural branches

D.      no willing takers among the bank employees for the rural posting

3. The Regional Rural Banks are the best fitted to be the vehicle for financial inclusion in rural areas. Choose the incorrect statement.

A.      Their Regional character

B.      Their functioning in a homogeneous agro climate area

C.      Their employees, hailing from the same area, are the best suited to relate with the rural customers

D.      They are managed by the people from their parent banks

4. The initiatives of the Reserve Bank of India towards the financial inclusion of the rural poor include. (Choose the incorrect statement)

A.      Introduction of basic 'no frills' savings accounts making them accessible to vast sections of the rural poor

B.      Issuance of simplified General Purpose Credit Card (GCC) without insistence on collateral or purpose

C.      Financing of SME's on concessional terms

D.      Relaxation of KYC norms for opening new relationship accounts in rural areas

5. Intermediaries through who banks reach out to the rural poor in areas they have no branches include. Choose the incorrect statement.

A.      self-help group

B.      non-government organization

C.      debt recovery agents

D.      microfinance institutions

6. A BC or BF will be an intermediary or a bridge between the bank and the targeted people.

A.      True         B.False

7. As a bank's face in the areas where there is no branch, ______________ will have to directly assist the people in various banking and finance-related matters.

A.      BC/BF

B.      NEFT

C.      RTGS

D.      KYCS

8. Which of these are the latest banking technologies?

A.      e-KYC

B.      IMPS

C.      AEPS       D. all of the above

9. Implementation of the electronic payment system such as ______________

A.      NEFT

B.      RTGS

C.      NPCI

D.      IDBI

10. Which of these services are not included in Financial Inclusion?

A.      bank account

B.      mutual funds

C.      affordable credit

D.      savings and insurance

11. What is " Financial Inclusion"?

A.      Creating bank accounts for people

B.      Bringing more number of people into the mainstream financial system

C.      Giving money to people

D.      None of the above

12. Who will represent the Bank Branch in rural and Un Banked Areas?

A.      Bank Manager

B.      Branch Manager

C.      BCBF agent

D.      All of the above

13. Apart from BCBF, who else plays important Part in Financial Inclusion

A.      NGO

B.      Self Help Group

C.      Payments bank

D.      All of Above

14. One of the major issue with rural branches of banks is ____________

A.      Urbanized staff ( People from Cities )

B.      No Staff at all

C.      Untrained Staff ( No Training of Staffs)

D.      None of the above

15. One of the major reason why people in rural areas never wanted to open a bank account was

A.      Too much distance they had to cover to reach a bank

B.      Too much money they had to deposit

C.      Too much documentation was needed to open a bank account

D.      All of the above

The bold option is the correct answer.