1. An endorsement is deemed as an instruction to?
A. Collecting Bank
B. Paying Bank
2. Ideal Credit deposit ratio for a bank is?
3. The rate at which RBI rediscounts the bills of commercial banks is called as?
A. Bank Rate
B. Prime Lending rate
C. Repo rate
4. Which of the following is not one of the RBI directives on clean note policy?
A. Currency note packets are not to be stapled and secured with paper bands
B. Soiled notes are to be stapled before they are remitted to Currency Chest.
C. Water mark window of bank notes shall not contain any writings
D. Currency notes are to be sorted in to Issuable and non-issuable notes.
5. Which of the following statements is true?
A. Resave Bank of India empowers the banks to open branches according to their will and pleasure
B. Reserve Bank of India is a central bank which monitors only lending activities pertaining to export credit
C. Banks have authority to establish the ATMs at their convenience
D. Rural banks of commercial banks do not have freedom to issue credit cards
6. When the customer withdraws cash from ATM, the banker and customer relation ship is?
A. Debtor and Creditor
B. Creditor and Debtor
C. Lessor and Lessee
D. Agent and principal
7. Credit rating helps in measuring the credit risk and facilitates?
A. Considering higher credit limits
B. Making loan provisioning at an early stage
C. Accurately calculate the probable loan losses
D. Pricing of a loan
8. Which of the following is a type of anticipatory letter of credit?
A. Green clause letter of credit
B. Yellow clause letter of credit
C. Back to back letters of credit
D. Revolving letter of credit
9. Regional Rural Banks are?
A. Private Sector scheduled commercial banks
B. Cooperative banks
C. Foreign banks
D. Public sector scheduled commercial bank
10. Which of the following is not an augmenting feature of credit cards?
A. Personal accident insurance
B. Cash withdrawal facility
C. Add-On facility
D. Automatic recovery of interest on term loans