BC / BF EXAM (IIBF) Series - 8 ( PROBABLE QUESTIONS AND ANSWERS )

41)The rate at which domestic currency can be converted into foreign currency and vice-versa is known as
A)LIBOR
B)Base Rate
C)Repo Rate
D)Exchange Rate
42)Banking Ombudsman is appointed by

 a) SEBI

b) NABARD

c) RBI

d) None of these

43)Bank deposits that can be withdrawn without notice are called :

a) Demand Deposits

b) Fixed Deposits

c) On-Demand and Time Deposits

d) Basic Savings Deposits

44)Mutilated Notes are?

a) Notes which are in pieces and/or of which the essential portions are missing

b) Any banknote, which is wholly or partially, obliterated, shrunk

c) Notes which are washed, altered or indecipherable

d) Notes which are wholly or partially, obliterated, shrunk, washed, altered or indecipherable

45)FCCB stands for:

a) Finance and Currency Controller Board

b) Foreign Currency Convertible Bond

c) Foreign Collection for Cash Board

d) None of these

46)Those amounts due to vendors or suppliers that must be paid within one year is known as:

a) Loan Advances

b) Accounts Payable

c) Creditors

d) Debtors

47)The maximum compensation by Banking Ombudsman for a complaint is:

a) Rs.1 lakh

b) Rs.2 lakh

c) Rs.5 lakh

d) Rs.10 lakh

48)A money deposited in a bank that cannot be withdrawn for a preset fixed period of time is known as:

a) Checking Account

b) Term Deposit

c) No Frills Account

d) None of These

49)RBI is the lender of last resort which reveals:

a) RBI advances money to the public whenever there is an emergency

 b) Commercial banks give fund to the RBI

c) RBI advances necessary credit against eligible securities to financial institutions

d) All of the above

50)The securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI) meant the recovery of loans which have become NPA is not applicable to:

 a) Financial Institutes of Government

b) Non – Banking Financial Companies

c) Small & Cooperative Banks

d) None of These

51) ”Microcredit” refers to:

a) Installments are given by farmers against loans

b) A small credit is given to poor

c) Credit is given by the government to improve industrialization

d) None of These

52) Which of the following is known as plastic money?

(A) Demand Draft   (B) Credit card  (C) Debit card

a.       only A

b.      only B

c.       only C

d.      Both B and C

e.       All A, B, and C

53) Bridge loans refer to-

 A.    Loans granted to construction companies for the construction of bridges.

 B.   Loan granted to PWD for construction of bridges over Rivers

 C.  Interim finance allowed by banks to their customers pending disbursement of term loans by financial institutions

 D. Loan granted to Railway for construction of bridges

 E.    None of these

54. Which of the following is Not a Negotiable instrument?

A.    Cheque

B.     Fixed Deposit Receipt

C.     Promissory Note

D.    Bill of Exchange

E.     All (A) to (D) above are negotiable instruments

55. What Is the maximum balance amount that is eligible for earning interest in a normal savings bank account?

(1) Rs 1 lac

(2) Rs 2 lacs

(3) Rs 3 lacs

(4) Rs 5 lacs

(5) No limit

56. Which of the following functions are not being performed by the Reserve Bank of India?

A.    Regulation of Banks in India

B.     Regulation of Foreign Direct Investment in India

C.     Foreign currency Management in India

D.    Control and Supervision of Money Supply

E.     Currency Management in India

57. A bank is called as ‘Scheduled Bank’ When

A.    Its business has crossed of 1000 core mark

B.     Its branch network is over 100

C.     It is included in the second schedule of the RBI Act

D.    When it complies with all the three above

E.     None of these

58.Upper limit prescribed for RTGS transaction is-

A.    Rs 1 lacs

B.     Rs 2 lacs

C.     Rs 5 lacs 

D.    Rs 50 lacs

E.     No upper limit is prescribed

59. The Banking Ombudsman-

(a) is in charge of bank loans for buses

(b) fixes the rates of interest for loans

(c) resolves complaints of customers

(d) issues licenses for new bank branches

(e) is the head of all nationalized banks

60. Money laundering means-

(a) Hiding of income source mainly to avoid income Tax

(b) Money acquired through criminal source.

(c) Money acquired from undisclosed sources and deposited in foreign banks

(d) Process of conversion of money obtained illegally to appear to have originated from legitimate sources

(e) Money acquired from drug trafficking 
Answers:-

41	D
42	C
43	A
44	A
45	B
46	B
47	D
48	B
49	C
50	B

51	B
52	D
53	C
54	B
55	E
56	B
57	C
58	E
59	C
60	D

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