NS - 633 Version Code V SEMESTER B.AJ/B.SC./B:C.A./B.SC.(FAD) A EXAMINATION, NOV/DEC. 2016 (CBCS) (Semester Scheme) (Fresh) (2016-17 and Onwards) BANKING AND FINANCE [619881 Question Booklet SI. No. _Time Allowed : 3 Hours Maximum Marks :70 SSS = INSTRUCTIONS TO CANDIDATES 1. Immediately after the commencement of the Examination, you should check that this Booklet does not have any unprinted or torn or missing pages or items, etc. If any of the above defects is found, get it replaced by a Complete Question Booklet of the available series. > 2 Write clearly the Question Booklet Version Code A, B, C, D or E, inthe appropriate space provided for the purpose, in the OMR Answer Sheet. “8. Enter the name of the Subject, Reg. No., Question Booklet version code and affix Signature on the OMR sheet. As the answer sheets are designed to sult the Optical Mark Reader (O.M.R.) system, special care should be taken to fill those items accurately. 4. This Question Booklet contains §5 questions, Part ~ A contains 40 questions of ‘one mark each and Part B contains 15 questions of twomarks each. All questions must be attempted. Each question contains four answers, among them one correct answer should be selected and shade the corresponding option in the OMR sheet, 5. Allthe answers should be marked only on the OMR sheet provided and only with a Black or blue ink ball point pen. if more than one circle is shaded / wrongly shaded / half shaded for a given question no marks will be awarded. 6. Questions are in both English and Kannada. If any confusion arises in the Kannada version, please refer to the English version of the questions 7. Immediately after the final bell indicating the closure of the examination, stop making any further markings in the OMR Answer Sheet. Be seated till the OMR Answer Sheet is collected. After handing over the OMR Answer Sheet to the Invigilator you may leave the examination hall Meda Aare ae ese aad kame ROTA‘HMI ET a NS - 633 PART-A aypn- a > > Answerall questions. Each question carries one mark. (40x1=40) oon depee ngor, BaasAnocbece. 1. Who regulates the money circulation in India 2 a) State Bank of India feserve Bank of India c) NABARD d) Commercial Bank wos, wes wensieSatoay Nowdos Rosia caved 2 a) Asst emacs" ear oBode b) Onrr om.08" La ORCA c) ner d) soedtg eB? *~ 2. Which of the following is not an organized sector in India ? a) Nationalized Banks b) Regional Rural Banks c) Cooperative Banks hits and Money Lenders SSPANA NES, adnajad mode woah AomES Boat ey? a) Days es war b) maciedd ma doers oy ov° C) Reed eRe d) t8e83 aoey wes memsdo SPACE FOR ROUGH WORKNS - 633 + (AK A 3, Who will settle the grievances of customers in banks ? a) Reserve Bank of India b) State Bank of India c) Local Courts gp) Ombudsman tostrive), males doocbsadsrids cinco oy OF A3=g8 7 a) Oxi r ERD BET GOB b) Apts! emost ea oaoun c) Ape acd d) wowerabar 4, Who introduced the Banking Ombudsman Scheme ? ay RBI b) SBI c) Ministry of Finance d) NABARD ROBOT LONE RINT cdnensocbay Boedonoaciaics ec? & a) 80F.00.90, b) ano ¢) Seeeaxs Aesmocrd d) semester 5. When was Ombudsman Scheme first introduced ? ayKlovember 2006 b) October 1981 c) June 1995 4) January 1998 coweat sat oSmenatodbey starien sowdctnnch osnamn ? a) AeSors0* 2006 b) 82900" 1981 c) east 1995 d) xa01998 SPACE FOR ROUGH WORKIM = ‘ NS — 633 6. When was Reserve Bank of India established ? s a) 1920 b) 1925 oyfeas d) 1948 mmoseon Ona r oR,o" mmscind Bar odvascts ? a) 1920 b) 1925 c) 1935 d) 1948 il When was Reserve Bank of India Nationalized ? a) 1947 b) 1948 271949 d) 1950 Sh, WROROD Oskar mom Ooayeedrartookah otnenn ? -| a)to47 b) 1948, c) 1949 ) 1950 8. When was Indian Banking Act came into force ? a) 1948 wy 1949 ©) 1950 d) 1951 *czeah motor mode omer woatmctues? a) 1948 b) 1949, c) 1950 ) 1951 ‘SPACE FOR ROUGH WORKNS - 633 & ‘A 0 9. Imperial Banks were amalgamated and changed as a) Reserve Bank of India byState Bank of India “¢) Subsidiary Banks d) Union Bank of India nom mogedadbe® wa,08" Hoc eeetoH, entdenonwd. a) uadaeck Onar eT," b) epodacoso apts eon c) wore, ce? d) cchadanrar enor’ ea” SoBe 4 10. When was Imperial Bank was changed as State Bank of India ? a) January 181935 b) February 26" 1947 _cyduly 181955 d) July 181959 soRedorder wa cds, Bes* wy,0e STF sqotodn nor csnar waleouRCNOLe ? a) xaisto1, 1935 b) afeg8026, 1947 ¢) t0¢3,1, 1955 d) tog1, 1959 41. How many Banks were first nationalized ? a) 10 b) 12 a 0) 16 aatlo Boas, nayeeorartnos encore as? a) 10 b) 12 c) 14 d) 16 SPACE FOR ROUGH WORKjn a NS - 633 12. How many Banks were in second phase of Nationalization ? a)4 prs o)6 a7 AORNe RosT, oogyeecrarince eyovenvd aay? a)4 b) 5 )6 a7 13. Who will act as the banker to the Government of India ? a) State Bank of India p)Reserve Bank of India c) NABARD " d) Nationalized Banks eos AF Us wR.o8o* GN BaF ADA Oded? a) Ape cove expt moma b) eodseod onasr e085 c) ater d) Doayegs wowed 14. Where is the Head Quarter of Reserve Bank of India located ? ay ifumbai b) Delhi c) Kolkatta d) Ahmedabad GROSAD ORS e em, o8's Dos Best 2S 7 a) stxorf b) dao c) 3QzQ d) vesboowar SPACE FOR ROUGH WORKNS - 633 & 15. Who was first governor of Reserve Bank of India ? a) K. A. Narasimham b) V.K. Malhotra c) A.K. Vadia we. D. Deshmukh wpddeod OnaTr mod's dado nade ot osmeandd ? a) 3.0 Sduowa b) &.8. abeliggss, ¢) a.%. mac d)&. & Bew*aoT" 346. When was Lead Bank Scheme introduced ? a) 1967 b) 1968 ay 1969 a) 1974 ont emyost oSnensicizey comer stosdcrontenctas) ? a) 1967 b) 1968 c) 1969 d) 1974 17. What is CRR ? ayCash Reserve Ratio b) Current Ratio Rate c) Review Report d) Credit Rating Record A BO. DOBTRD ? a) artcis Avedon wares b) days exes ad c) Saar sesrob dO d) ges" Getson® Seowtr SPACE FOR ROUGH WORK18. 1 2 a NS — 633 Interest rates being charged by Banks in India have shown ____ trending recent year. alling b) Rising c) Stable d) Volatile ages Barve, wOSeod GAT tR:OF OOS wa Bord a) Bxotoged b) acdact c) exgesnncd 0) mpaideosmncd The first development financial institution in India that has got merged with a bankis. a) IDBI +*yicicl ) IDFC d) UTI 080, m,cvtridecdr DOcReed sao wwe airmen Ros, a) DawD b) macro c) naw” d) odooege0 The rate of which discounting the bills of first class banks is done by RBI is called a) Bank Rate b) Prime Lending Rate c) Loan Rate dy Discounting Rate wpdscob Ofer eRe Had aned nose wegriday oodmonDs Bans ad a) aos od b) Squad me Raines co) mond d) dodnons aid SPACE FOR ROUGH WORKNS - 633 10° {AAA 21. ares Ombudsman has been constituted under which Act ? anking Regulation Act b) RBI Act c) SBI Act d) COPRA canes mpomatod@odsd, my o8or wows ALAY rsHV0DB ? a) w,080r ‘odes reo BONS b) sor mone c) anaD MONG d) maw Aodepe BOLO 22. Gilt edged securities refer to aoe Securities b) Securities issued by municipal corporations c) Securities issued by first class companies d) None of these Dot, ates Ady OLR 20d a) Rear dcs whedze arts b) ajokep noirish adanbs use aris ¢) Scio cede oc dostarte Radaanie doje aigrivs d) sRAStie SY, 23. Arbitrage is ‘ay Buying and selling in two markets simultaneously b) Arate of interest c) Afee 4) Arbitrage is a dispute soe" 20nd a) ade ands8sobg, aBMODG, DOC mone BVT b) wads c) 88, d) ond SPACE FOR ROUGH WORKon oe NS - 633 24. The provision of Consumer Protection Act, 1986 are a) To the customers of the bank only To the customers and the users of services irrespective of against consideration or free services ¢) To the customers and any user of Bank's services against consideration d) None of these TRE Xodgpm motors, 1986 de wa, ctordajo a) moe MRO ang, b) maaided abe Pox, aiedosbuatatc (0) Masia ave cdma emjowt maiec d) amide ex, ( >, 25, Banking Ombudsman means a) Person appointed to recover dues from defaulting borrowers ‘A person to whom customer can approach for redress of his grievances c) Aperson appointed to settle dispute between employees and management 4) Aperson appointed by RBI to oversee the functioning of Foreign Banks Toto wowst IT aos a) mt mverdnoads mu ainw sindon deaverined ay b) mech dk dochsncendy eoxonsagerdonteatiemd ay eich say weed chodech Saas Omnd weer cas ay Tid mode Aa anion coed, emai wor 1m. doe SeoowOwy, y SPACE FOR ROUGH WORKNS - 633 12 (AUMUT 26. Full form of SLR Statutory Liquidity Ratio b) State Level Recovery c) Sundry Leverage Ratio d) State Liquidity Ratio oF oo eo. og Ss daw a) sarcing, Seats b) borg aba akoee 6) Weg mabye eadens 0) bey Bal eases 27. C.R.A. in Banking parlance stands for 3 a) Credit Rating Association b) Credit Rating Agency ee Risk Assessment d) None of these modorrae), &. 8O".d, 2008 a) $28 devon’ emtacxctbestot b) Sass" Setson® axa, c) Bats" Ont, ear sDoLT d) aman ee, 28. E.P.S. in share market stands for _ayEamings Per Share b) Electronic Payment System c) Employee Pension Scroll d) None of these Sedo Bdvetiod, 2. &.25". 20nd a) OF ort wot eo" b) cian pe" slesioots" api Cc) nom sara Ace d) amas vg, SPACE FOR ROUGH WORKNS - 633 a+ {A 32. Who is the Present Governor of RBI ? rit Patel b) Y. V. Reddy c) Ranga Reddy d) None of these padded Oxarr eRe BAS Maro cde)? a) mawrst seo" b) $2.38, c) dom da, d) amace ee, 38, Which of the following cannot be called as a debt instrument as referred in the financial transactions ? a) Certificate of deposit b) Bonds c) Commercial papers A)! Debentures arom) aiaencrivg, siden cinadaymos euidcrsstord datos a0? a) dead dines grt b) modonisd ) antiey 23 Ere d) meas ‘SPACE FOR ROUGH WORK‘TN 46 NS - 633 | _ 34, Minimum period of a Certificate of Deposit is a) 15 days b) 30 days , c) 10 days ST cays ' Sesird Gatnmoags tales a) 15 dae b) 30 driv ©) 10 Ox d) 7.O8n¢ 35. Acustomer has been defined in a) Banking Regulation Act b) Negotiable Instruments Act ©) Anti-Money Laundering Act c) oe d) DA, SPACE FOR ROUGH WORK C guidelines t pa BM acenckhod symaastoand? _ | _*__ a) myotont aexzogen meted “a b) Srineacioener aartagehoots, socks Cc) s4ott- ab emoetbont ected * de Ba. hoes, 36. Which bank in India ranks number one in terms of market capitalization ? I b) ICICI e)UTI d) IDBI SRB nodmerddradd), cdsad, avoderloboghs mor’ cing ? | ajoarna b) saxsane |NS - 633 46 | E 37. RBI pays interest on CRR balances of banks at g a) Bank Rate Repo Rate c) Bank rate minus 2% d) Zero % BON dca, dict Aoeden eadands ses wR, message, a) eon do b) Ssipe cid : c) wos" id 2% d) sae, % 38. What does the letter ‘S’ denote in the term IFSC ? a) Subscriber —_b) State System _d) Source naprartacnd, as” nas) BeaQA~gs ? a) domed b) way ©) a, d) 220 339. What is the full form of CBS ? a) Core Banking Solution b) Core Banking Software eS Core Banking System d) Core Banking Service adassaxg ted j a) decor motor’ Anois, b) smect mmoson® AEE SEO c) Saeot emjotorr sy, d) 8meo* mmodorY Aeas 40. Which of the following is not a part of India’s money market ? a) Banks b) Bill markets c) Call money market indian gold council ‘sitdndgrde, cinaed woud sirsvar aacbeedow merise, 9 a) emerrieo b) mer aracbeesyted c) mer sea Bcdeds, 0) madaecd eis, PAST SPACE FOR ROUGH WORKa7 NS - 633 PART-B Awn- vo Answerall questions. Each question carries two marks. (15x2=30) | oz Berea ewgon. Ja eft ace coded. 41. Which among the following is called the rate of interest charged by RBI for } fending money to various commercial banks by rediscounting of the bills in India? a) Bank Rate b) Discount Window c) Monetary Policy d) Overnight Rate send cindsead wands) wRdsech One r UR.OBT sardes moore Rocbdaincins NeY sed emdsierdabgcs 7 . a) anos’ dd "a b) dicts’ Dockoe ¢) dgectd ded } 0) LBordes do i 42. Which one of the following set up score banking infrastructure for rural banks ? a)IBA b) NABARD ¢) RBI d) SIDBI : Tre moernieri éaco* enter show Pear aay, Bidens indarapead 7 a=te b) aenatr dserne d) amPDare SPACE FOR ROUGH WORKNS - 633 ae (AUN AN 43, Which organization provides credit history of the Porawers 2 a) CIBIL b) cll c) FRBI d) IRDA momdd Bais ooennisay odnal dope SoS ? ‘ a)anet b) ane e c) aafeo"to d) neces 44, Who regulates the Mutual Funds in India ? a) FRBI b) SEB! c) SIDBI d) RBI 5 gpdddd), xed agridey, cand aosvogregS? a) agrEOTRD b) arene ¢) antRane d) ootee 45, What will be the impact if Reserve Bank of India reduces the Bank Rate by 1%? a) Less liquidity in the market b) More liquidity in the market c) No change in the market liquidity 4) Mobilzations of more deposits by Commercial Banks sor Bed emasecr Onatr enyoe umoatidclay e.19% zagineadd end soma nerd? a) dndee od, sac 3aS b) sindoeiosd, ae, BAS ¢) Racbekiod Gaisabd, waa 22, ) satiny corre, sek, Sees oe SPACE FOR ROUGH WORKAg NS — 633 _ 48. What will bank customers pay for using safe deposit locker facilities ? a) Commission on locker b) Exchange on locker c) Renton locker 4d) Safe custody charges Seeks EO Poxiriday weakoracinn woe’ mac nady maataags 2 a) REO tomar b) easor Dame c) neo pan d) Rocees aes, 47. Which of the following NBFC converted itself into a Commercial Bank ? a) Tata Finance ) Reliance Capital Trust Cc) Mutual d) Kotak Mahindra BUNT CRB AT UHTA Toedey wy,0ef SN Woaer artecad 7 a) iD amMA’, b) 0umbar, BALLIEF EURt, p ¢) oR, moyzdster 6) Bretser aototors 48. What happens if a crossed cheque is presented for payment ? a) Itcan be paid only through a banker 5) It cannot be paid at all c) Itcan be paid across the counter in another bank d) None of the above wom ated? top, we’ en caaeri wweaadd Herds 2 a) R80" Sing mBssoo mg, b) masta so, C) StS moshd, mnswadad @) rds cinazin ve, SPACE FOR ROUGH WORKNs - 633 2 {Mu 49. What is Call Money ? ° a) Money borrowed or lent for a day or overnight b) Money borrowed for more than one day but up to 3 days c) Money borrowed for more than one day but up to7 days d) Money borrowed for more than one day but up to 14days wet dd nodded? a) wort Oat ag eeioe ODQeDS BOTY, AP geoajch eaiem Boob b) noch OS eegpe, shad Aas aomey sched ag) word 8 seE 2, ad Qeresdn Bea mOs sooo d) 20rd OS Seb, BOM osddadt do Os, scbajc> 50. What is the most powerful tool used Py the Reserve Bank of India to control inflation? f a) Raise interest rates b) Raise current supply c) Reduce current supply 4d) Reduce interest rates sentra Roodten wABEED OST THe sxseg end cnc? a) wags: wespoayeo b) 3s agg tego c) Sys aads wee | 4) wage easreeaba ‘SPACE FOR ROUGH WORK ete‘Me 2 NS - 633 51. Which is the instrument used by RBI under general credit control ? a)CRR b) SLR c) Bank Rate d) Exchange control MSF RAT MO abos ra anwen SOND ws Ga coREGd? a) Aor b) avtae wor c) most dd, d) QRzbow Aowogeo 52. Which one of the following is the ratio of the loan principal to the appraised value ? a) Combined Loan to Value (CLTV) ratio b) Loan-to-value Ratio ¢) Mortgage Loan Ratio ) Statutory Liquidity Ratio aan¥O, cinajch aque mo aie) abe, Dror ote axOs exsEaDNS? @) AderesD erbaDs b) mo-akPy waded c) anestertest me embang | 0) maxaid dx exams SPACE FOR ROUGH WORK