The best way, a bank can avoid loss is to :
lend only to individuals known to the bank
accept sound collateral
give only short-term loans
lend only to bank's old customers
Correct Answer :
A. lend only to individuals known to the bank
Related Questions
Participatory Notes (PNs) are associated with which one of the following?
Consolidated Fund of India
Foreign Institutional Investors
United Nations Development Programme
Kyoto Protocol
According to the RBI directions, a NBFC (Non-Banking Finance Company) must possess a Net-owned Fund of the amount:
minimum Rs.5 lakh
minimum Rs. 10 lakh
minimum Rs. 25 lakh
minimum Rs. 50 lakh
The National Stock Exchange functions from:
New Delhi
Mumbai
Nagpur
Kolkata
Bank rate is the rate at which:
a bank lends to the public
the Reserve Bank of India lends to the public
the Government of India lends to other countries
the Reserve Bank of India gives credit to commercial banks
What is the role of 'Over-the Counter Exchange' (OTC)?
Help in the introduction of multi-tiered markets and import liquidity to them
Help to overcome the balance of payment crisis
To arrange funds from different foreign banks of developing/ under developing countries
All of the above
The primary objective of Unit Trust of India is:
to assist the industries in financial difficulties
to diffuse the benefit of development among the masses
to accumulate funds for public investment expenditure
to promote the investment habit among those who have not been able to diversify investment risk
Basel Committee has given its recommendations on which of the following aspects of banking operations? [RBI Grade B Officer 2011]
Marketing of bank products
Priority sector lending
Risk Management
All of the above
If the cash-reserve ratio is lowered by the Central bank, what will be its effect on credit creation?
Decrease
Increase
No change
None of these
Which one of the following Indian banks is not a nationalized bank? [IAS 2006]
Corporation Bank
Dena Bank
Federal bank
Vijaya Bank
As per the reports published- in various journals and newspapers the 'small borrowers' in rural areas still prefer to take informal route for their credit needs. Which of the following is the 'informal route' of credit in financial sector? [Punjab & Sindh Bank 2011]
Credit cards
Loan against gold from financial institute
Debit cards
Money lender
The RBI has regional offices at various places. At which of the following places it does not have an office? [RBI Grade B Officer 2011]
Kota
Nagpur
Lucknow
Panaji
The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called: [IAS 1998]
SBRC (Statutory Bank Ratio)
SLR (Statutory Liquid Ratio)
CBR (Central Bank Reserve)
CLR (Central Liquid Reserve)
Who amongst the following has never held post of the Governor of the RBI? [RBI Grade B Officer 2011]
C. Rangarajan
L.K. Jha
Manmohan Singh
Usha Thorat
All of the following are subsidiaries of the State Bank of India, except:
State Bank of Bikaner and Jaipur
Central Bank of India
State Bank of Hyderabad
State Bank of Patiala
EXIM Bank was set-up in :
1980
1982
1985
1986
Consider the following statements: [IAS 2004]
1. The National Housing Bank, the apex institution in housing finance in India, was set up as a wholly owned subsidiary of the Reserve Bank of India
2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
The first Bank established in India was
Punjab National Bank
Traders Bank
State Bank of India
Bank of Hindustan
Which of the following are the functions of the Central Bank of India? [Railways 1992]
1. Regulation of currency and flow of credit system
2. Maintaining exchange value of rupee
3. Formulating monetary policy of India
4. Supervisory powers over the indigenous bankers and leasing companies
1 and 3
1, 2 and 3
1, 2 and 4
1, 2, 3 and 4
For regulation of the Insurance Trade in the country the Government has formed: [UP PCS 2002]
SEBI
Reserve Bank of India
Insurance Regulatory and Development Authority
General Insurance Corporation
The Reserve Bank of India issues:
all the currency notes
all the currency notes except the one rupee note
all the currency notes except the hundred rupee note
only notes of Rs. 10 and above
The difference between a bank and a non-banking financial institution (NBFI) is that: [IAS 1994]
a bank interacts directly with customers while an NBFI interacts with banks and governments
a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is , mainly concerned with the term loan needs of large enterprises
a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies
a bank's main interest is to help in business transactions and saving/investment activities while an NBFl's main interest is in the stabilisation of the currency
The Securities and Exchange Board of India has been set up to :
1. protect the interests of investors
2. to regulate the activities of brokers in the stock market
3. to ensure transparency in operation in the stock market.
4. to encourage a healthy growth of the stock market
Choose your answer from:
1 and 2
1, 2 and 4
1, 2 and 3
1, 2, 3 and 4
What are gilt-edged securities?
Securities issued by the multinationals
Securities issued by the government
Securities issued by the private sectors
Securities issued by the joint venture companies
Who is responsible for the collection and publication of monetary and financial information?
Finance Commission
Finance Ministry
Reserve Bank of India
Auditor and Comptroller General of India
Consider the following statements: [IAS 2004]
1. Reserve Bank of India was nationalized on 26 January, 1950
2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
The functions of the Reserve Bank of India are:
1. issuing all notes and coins
2. distributing all notes and coins
3. formulating monetary policy
4. acting as agent of Government in respect of India's membership of the IMF
1, 3 and 4
2 and 3
2, 3 and 4
1, 2, 3 and 4
The arguments to support opening up of the Insurance sector in India were:
1. It will provide wider choice to customers
2. It will infuse competition and efficiency
3. It will widen the base of long term funds
4. It will improve balance of payments position
Choose the correct answer from:
1, 2
2, 3
1, 2, 3
1, 2, 3 and 4
Which of the following is called a 'banker's cheque' ? [CDS 2002]
Demand draft
Debit card
Pay order
Fixed deposit
How do we define the terms bull and bear with regard to stock markets?
A bull is an optimistic operator who first buys and then sells shares in expectation of the price going up; a bear is a pessimistic market operator who sells the shares in expectation of buying them back at a lower price
There is nothing significantly different as both operate in the capital market
Bull is one who first sells a share and then buys it at a lower price; bear means one who first buys and then sells it in expectation of prices going up
A bull is ready to buy any share; a bear only deals in government securities
Who amongst the following was never a Governor of the RBI ? [SBI Associates Clerk 2011]
Bimal Jalan
Y. V. Reddy
Arup Roy Choudhury
C. Rangarajan