Principal of Banking

1. Which of the following instruments is used by public to directly lend to the Government ?

Bank Deposits
Public Provident Fund
T-Bills
Certificates of Deposit


2. Inter-bank call money refers to borrowing among banks for -

Overnight
Two days
More than 14 days
Less than 14 days


3. Certificates of Deposits have to be of a minimum value of

Rupees 1 lakh
Rupees 10 lakh
Rupees 25 lakh
Rupees 1 Crore


4. Commercial Bills market is a part of

Organised money market
Unorganised money market
Stock market
None of the above


5. A scheduled commercial bank is one

Which is included in the Second Schedule of the RBI Act 1934
Which is included in the Banking Regulation Act, 1949
Both (a) and (b)
None of above


6. Indigenous bankers are regulated by

Reserve Bank of India
Ministry of Finance
Registrar of Co-operative Societies
None of the above


7. What is the stipulated share of the priority sector in the net bank credit?

35 %
20 %
40 %
45 %


8. Mutual funds are regulated by

Association of Mutual Funds of India (AMFI)
Securities and Exchange Board of India (SEBI)
Reserve Bank of India
None of the above


9. A growth fund is

One in which the money is invested in equities
One in which the money is invested in government bonds
One in which the money is invested equally in equity and bonds
Money is invested only in money market instruments


10. ARCIL is an example of

A financial institution
A mutual fund
An asset management company set up to acquire NPAs of banks
A discount and financing house