SET-II

21. Collateral securities can be                                                                                  (d)
(a) Tangible
(b) Intangible in the shape of personal guarantee of a third party
(c) None of the above
(d) Both of the above

22. The Central Bank of India is                                                                               (a)
(a) The Reserve Bank of India      (b) The State Bank of India
(c) The Andhra Bank                      (d) Global Trust Bank

23. Stock exchange securities do not include                                                      (d)
(a) Debentures of companies
(b) Small debentures issued by port trusts
(c) Government promissory notes
(d) Participation certificates

24. Under Section 19(i) a banking company can hold shares in a limited company to the extent of                                                                                           (c)
(a) The paid-up capital and free reserve of that company
(b) The paid-up capital of the bank
(c) 30% of the paid-up capital of the company or 30% of its own paid-up capital and reserves which ever is higher
(d) 30% of the paid-up capital of the company or 30% of its own paid-up capital and reserves which ever is higher

25. The Definition of ‘Banking’ is given in                                                            (c)
(a) Negotiable Instrument Act, 1881
(b) RBI Act, 1934
(c) The Banking Regulation Act, 1949
(d) Contract Act

26. When was SBI established ?                                                                                (d)
(a) April 1, 1935                    (b) July 31, 1969
(c) May 5, 1955                      (d) July 1, 1955

27. Presently, the number of the public sector banks in India is                (c)
(a) 8                (b) 20
(c) 28              (d) 14

28. The maximum number of partners in a non-banking partnership firm is
(a)
(a) 20             (b) 10
(c) 25              (d) 11

29. Which of the following banks are not commercial banks ?                   (b)
(a) Foreign Banks                (b) State Co-operative Banks
(c) Private Banks                 (d) Regional Rural Banks

30. Regional rural banks are managed by                                                            (c)
(a) The Central Government                    (b) The RBI
(c) The Board of Directors                          (d) The State Government

31. Under which of the following methods of note-issue the RBI issues notes?                                                                                                                                    (c)
(a) Fixed Fiduciary System                        (b) Maximum Fiduciary System
(c) Minimum Reserve System                  (d) Proportional Reserve System

32. Cash deposit ratio means                                                                                     (a)
(a) The percentage of cash-in-hand-balance with the Central Bank to the aggregate deposits
(b) The percentage of total cash money received as deposits by banks
(c) All the above
(d) None of the above

33. Lead Bank Scheme was introduced in                                                            (b)
(a) 1965                      (b) 1969
(c) 1981                      (d) 1992

34. A rise in the reserve ratio of banks                                                                   (c)
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money supply
(c) Will lead to a decrease in the money supply
(d) None of these

35. Negotiable Instruments Act contains Sections as                                      (b)
(a) 137                        (b) 142
(c) 138                        (d) 141

36. Presently which bank is having the largest number of foreign branches?    
                                                                                                                                                (c)
(a) SBI                                   (b) Canara Bank
(c) Bank of Baroda              (d) Bank of India

37. A usance bill can be drawn for a minimum period of                              (a)
(a) 1 day                     (b) 2 days
(c) 3 days                   (d) 4 days

38. Savings bank deposits are exempted from wealth tax up to                  (b)
(a) 2 lakhs                 (b) 5 lakhs
(c) 10 lakhs               (d) 20 lakhs

39. The amount of unclaimed banker’s cheques is credited to                    (d)
(a) Respective LHO                         (b) Respective Module
(c) Charges A/c (Misc)                    (d) Commission A/c

40. SBI is having maximum number of foreign offices in                              (b)
(a) U.S.A.                               (b) U.K.

(c) West Germany               (d) Japan

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