Exercise Quiz & Test -2


1. What does ‘Kite Flying’ refers to in the banking terminology?
(A) The practice of depositing and withdrawing frequently in a bank account.
(B) Opening of multiple accounts with different names by any individual
(C) Doing unauthorised business
(D) Permitting drawls against uncleared cheques
(E) None of these

View Answer
(D) Permitting drawls against uncleared cheques

2. Under which of the following type of account is a specified amount deposited every month for a specified period, says, 12, 24, 36 and 60 months?
(a) Fixed Deposit Account
(b) Saving Bank Account
(c) Current account
(d) Recurring Account

View Answer
(d) Recurring Account

3. RBI was established on ___________.
(a) April 1, 1925
(b) April 1, 1935
(c) April 1, 1945
(d) April 1, 1955

View Answer
(b) April 1, 1935

4. Under which act does RBI issue directives to banks?
(a) PMLA Act, 2002
(b) RBI Act, 1934
(c) DICGC Act, 1961
(d) Banking Regulation Act, 1949

View Answer
(d) Banking Regulation Act, 1949

5. When the Reserve Bank of India (RBI) is the lender of last resort, what does it mean?
(a) RBI advances money to public whenever there is any emergency
(b) Commercial banks give fund to the RBI
(c) RBI advances necessary credit against eligible securities
(d) All of the above
(e) None of the above

View Answer
(c) RBI advances necessary credit against eligible securities

6. Which of the following conditions must be fulfilled before a bank is included in the Second Schedule to the Reserve Bank of India Act?
(a) It must be a State co-operative bank or a company as defined in the Companies Act, 1956 or an institution notified by the Central Government in this behalf or a corporation or a company incorporated by or under any law in force in any place outside In
(b) It must satisfy the Reserve Bank of India that its affairs are not being conducted in a manner detrimental to the interests of the depositors
(c) It must have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lakh
(d) Only (a)
(e) All of the above

View Answer
(e) All of the above

7. What is macro-economics?
(a) macro economics deals with economic activities of the level of an economy as a whole
(b) it deals with only a segment of an economy
(c) it deals with both 1 and 2
(d) none of these

View Answer
(a) macro economics deals with economic activities of the level of an economy as a whole

8. Which of the following banks was first to establish merchant banking business in India?
(a) ABN Amro Bank
(b) Citibank
(c) HDFC Bank
(d) Standard chartered
(e) Grindlays Bank

View Answer
(e) Grindlays Bank

9. Free Trade Refers to
(a) Free movement of Goods from one country to other.
(b) Movement of Goods from one Country to another free of cost.
(c) Unrestricted exchange of Goods and Services.
(d) Tool free of Duty

View Answer
(c) Unrestricted exchange of Goods and Services.

10. ‘Swabhiman’, the financial inclusion scheme, comes under the purview of which ministry?
(a) Ministry of Commerce
(b) Ministry of Home Affairs
(c) Ministry of Finance
(d) Ministry of External Affairs

View Answer
(c) Ministry of Finance