Which of the following best defines the term 'Letter of Credit' as used frequently in bank transactions? [SBI PO 1991]
An order from a bank to another bank abroad authorising the payment of a particular amount to a person named in the letter
An unconditional undertaking given by a bank ensuring the payment of a particular amount to the drawee at a given date
Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank
Statement showing outstanding- deposits and credits of a bank for a particular period
Correct Answer :
C. Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank
Related Questions
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
In 1921, the Presidency Banks of Bengal, Madras and Bombay were nationalised to give birth to:
Punjab National Bank
Syndicate Bank
State Bank of India
Punjab and Sindh Bank
Which of the following constitute short-term sources of finance for small scale industries?
1. Private money lenders
2. Loans by commercial banks
3. Credit Guarantee schemes
4. National Small Industries Corporation
1, 2 and 3
1 only
1, 2 and 4
1, 2, 3 and 4
In India, the first bank of limited liability managed by Indians and founded in 1881 was:
Hindustan Commercial Bank
Oudh Commercial Bank
Punjab National Bank
Punjab and Sind Bank
The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following? [IAS 2007]
State Bank of India
Reserve Bank of India
ICICI Bank
Life Insurance Corporation of India
'Sub Prime Lending' is a term applied to the loans made to ___ [Punjab & 5indh Bank 2011]
those borrowers who do not have a good credit history.
those who wish to take loan against the mortgage of tangible assets.
those who have a good credit history and are known to bank since 10 years.
None of the above
Which one of the following is not a feature of Limited Liability Partnership firm? [IAS 2010]
Partners should be less than 20
Partnership and management need not be separate
Internal governance may be decided by mutual agreement among partners
It is a corporate body with perpetual succession
Among the following, which one is not a credit rating agency operating in India?
CRISIL
ICRA
Dow Jones
CARE
The system of value added taxation is applicable to:
excise duties
income tax
estate duty
taxes on agricultural income
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
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 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
Which of the following is now a punishable offence by a Bank Account holder ? [Bank PO 1990]
If a cheque is not crossed
If a post-dated cheque is issued
If a cheque drawn by him is dishonoured for insufficiency of funds in his account
Issuing a cheque without signature
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)
In India, the bank NABARD does not provide refinance to : [CDS 2002]
Scheduled Commercial Banks
Regional Rural Banks
Export-Import Banks
State Land Development Banks
The Imperial Bank of India, after nationalisation was given the name of:
Reserve Bank of India
Bank of India
State Bank of India
Indian Overseas Bank
Open market operations of a Central Bank are sale and purchase of:
foreign currencies
corporate securities
trade bills
government securities
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
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
Which one of the following statements is not correct? [CDS 2009]
The National Association of Securities Dealers Automated Quotations known as NASDAQ, is an American stock exchange
Nikkei is the stock market index for the Tokyo Stock Exchange
S and P CNX Nifty is the index for 50 large companies on the Bombay Stock Exchange
Hang Seng Indexes record daily changes of the largest companies of the Hong Kong stock market
Which amidst the following rural banks has been named after a river? [NDA 2002]
Prathama Bank
Varada Grameen Bank
Thar Anchalik Grameen Bank
Aravali Kshetriya Grameen Bank
Which one of the following Public Sector banks' emblem figures a dog and the words 'faithful, friendly' in it ? [CDS 2010]
Punjab National Bank
Syndicate Bank
Oriental Bank of Commerce
State Bank of India
The place where bankers meet and settle their mutual claims and accounts is known as : [Bank PO 1993]
treasury
clearing House
collection Centre
dumping Ground
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
Which of the following activities would Small Industries Development Bank of India (SIDBI) undertake under the new rural industrialisation programme? [Bank PO 1994]
1. Consultation in erecting the project
2. Providing marketing assistance and refinance facilities at later stage
3. Running the project during initial stage
Only 1and 2
Only 2 and 3
Only 2
Only 1
The main function of the Exim Bank is:
to help RBI in the regulation of foreign exchange
to prevent unlicensed transaction
to promote exports and curtail imports
to conserve foreign exchange
In some parts of India, farmers face acute distress because of heavy burden of debt from non-institutional renders. Who can be called a non-institutional lender? [RBI Grade B Officer 2011]
Small Banks
Grameen Banks
Credit Cooperative Societies
Money Lenders
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
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
The number of Banks nationalised since 1969 is : [PCS 1994]
8
12
14
20