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W hat is 'C urrency Futures market' ? BANKING KNOWLEDGE / FINANCIAL AWARENESS 1. RBI useswhich type of machines for checking the numerical accuracy and genuineness of the currency notes, including SBNs? a) Only Hand counting b) Sophisticated Currency Verification & Processing (CVPS) c) Paper bundles checking d) Only Compiling e) None of these 2. What is "Zombie Lending" or 'evergreen lending'? Give details? a) If a banking system remains systematically undercapitalized and new lending is not kept under a tight supervisory watch, then the economy can suffer significantly from a credit misallocation problem, now commonly known as 'loan ever-greening' or 'zombie lending' b) Undercapitalized banks have an incentive to roll over loans from financially struggling existing borrowers so as to avoid having to declare these outstanding loans as non-performing. c) With these Zombie loans, the impaired borrowers acquire enough liquidity to be able to meet their payments on outstanding loans. d) By 'ever-greening' these loans, banks effectively delay taking a balance-sheet hit, while taking on significant risk that their borrowers might not regain solvency and remain unable to repay, now even larger loan payments. While unproductive firms receive subsidized credit to be just kept alive, loan supply is shifted away from more credit worthy firms e) All the above 3. 'GIIPS' countries indicate which of the following? a) Greece b) Ireland, Italy, c) Portugal d) Spain e) All the above 4. Outright Monetary Transactions (OMT) programme is from which of the following? a) ECB's b) FDs c) RDs d) CAs e) None of these 5. What is the objective of AQR of RBI? a) To incur loss b) To get the banks to recognize the hitherto 'masked stress' in their balance sheets. c) To get interest d) To get discounts e) None of these 6. Internal Advisory Committee (IAC) constituted by the Reserve Bank has an objective and has allayed the misgivings. What is recommended by IAC? a) Reserve Bank should initially focus on stressed assets which are large, material and aged, in that they have eluded a viable resolution plan despite being classified as NPAs for a significant amount of time b) Reintroduction of Rs.1000 note c) Printing of Rs.5000 note d) Printing of Rs.10,000 note e) None of these 7. In 2015 the Government of India announced the "Indradhanush" plan for which of the following ? a) Demonetization b) To revamp the public sector banks c) Inflation control d) Price suppression e) None of these 8. The Government of India has been infusi ng capital on a regular basis into the pu blic sector banks, to enable them to meet regulatory capital requirements and maintain the government stake in
the PSBs at a benchmark level (set at 58 per cent in December 2010, but subsequently lowered to _______ percent in December 2014). a) 49 b) 52 c) 45 d) 40 e) None of these 9. The Cabinet Committee on Economic Affairs has recently authorized _____ to take decision on the divestment in respe ct of public sector banks through exchan ge-traded funds or other methods subjec t to the government retaining 52% stake a) Higher Mechanism b) Alternative Mechanism c) Lower Mechanism d) Zero Mechanism e) None of these 10. Which of the following are the initiatives to have the national drive towards financial inclusion (for agriculture sector/ farmers)? a) Establish a nation-wide market for agricultural produce, through eNAM, b) Pradhan Mantri Fasal BimaYojana c) Pradhan Mantri Krishi Sinchai Yojana
18. What is 'Garnishee Order'? a) It is an order of the court obtained by a ju dgement creditor attaching the funds belo nging to a judgement debtor in the hands of his debtors, including a bank, who is called Garnishee, advising not to release the money until directed by the Court to do so b) Order from Bank Manager c) Order from Chairman of the bank d) Order from General Manager of the bank e) None of these 19. What is Power of Attorney (POA)? a) It is a document executed by one person called donor or principal in favour of another person called done or agent to act on behalf of the former, as per the authority given in the document . b) It is for electricity supply c) It is for internet connection d) It is for wifi connection e) None of these
BANK PO/ CLERKS EXAM SPECIAL 11.
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d) Paramparagat Krishi Vikas Yojana e) All the above Of the total 77 million agriculture credit accounts under consideration, about 39 million accounts in India, were held by whom? a) Small and marginal farmers having land holding up to 2 hectares b) Landlords c) Real estate brokers d) House builders e) None of these Please note that MDR charges on debit card transactions above _______ and on any credit card transaction are not being absorbed by Government of India and hence will not be reimbursed by RBI. a) Rs.5 lakh b) Rs.one lakh c) Rs.10 lakh d) Rs.20 Lakh e) None of these What is 'Currency Futures market'? a) Coins are sold b) One rupee notes are sold c) The market in which currency futures are traded. d) Gold is traded e) None of these 'Currency Futures' means what? a) A standardised foreign exchange derivative contract traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the date of contract, but does not include a forward contract b) Gold trading c) Silver trading d) Ornaments trading e) None of these Persons resident in India have which of the following over-the-counter (OTC) products, for hedging their currency risk? a) Currency forwards b) Swaps c) Options d) All the above e) None of these The currency futures market would function subject to the directions, guidelines, instructions issued by whom , from time to time? a) Reserve Bank and the SEBI b) PFRDA c) CCI d) IRDAI e) TRAI "Mutual benefit company" means what? a) Unregistered society b) A company not notified under section 620A of the Companies Act, 1956 (1 of 1956) and carrying on the business of a non-banking financial institution c) Partnership firm d) Sole proprietorship firm e) None of these
20. How many types of Power of Attorney are there? Give details a) Two types b) General or universal c) Special or limited d) It is a stamped document and is executed in the presence of a Notary Public / Magistrate of a Court / Government official authorized to do so e) All the above 21. What is Right to set-off ? a) Set - off is the right of a debtor to take into account a debt owing to him by a creditor, when claiming a debt due from him to the creditor b) In the case of a banker, the right of setoff enables him to adjust a debit balance in a customer's accounts, with any balance outstanding to his credit in the books of the bank. c) The banker can adjust his claim from the amount that is payable to the customer d) All the above e) None of these 22. What are the essential features of a setoff ? a) It is a statutory right and can also arise out of an agreement between the parties concerned b) It is an ongoing situation, the right of set-off can be exercised by a banker by serving a reasonable notice on the customer c) There should be mutual debts and debts should be for certain sums, while the claim and the cross claim should be for certain sums d) All the above e) None of these 23. Automatic right of set-off (i.e., set-off without notice) arises in which cases? a) Death or insanity / insolvency of the customer b) Insolvency of a partner or on the winding up of the company c) Receipt of garnishee order d) Receipt of notice of assignment of customer's credit balances e) All the above
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BΔäˇGãúGÃå˝ Praturi Potayya Sarma ANSWERS 1) b 2) e 3) e
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