1 Which of the following statements is true? 1.

The license to open branches of bank is granted by Board of Directors of that Bank 2. There is no need of licenses to open branch of a bank 3. A license to open a branch is issued by the Central Government 4. A license to open a branch is issued by the Reserve Bank of ndia under the provisions of Bankin! Re!ulation Act" #$4$ 2 The important condition for granting licence of banking companies is? #. Bankin! company need not plan to pay for future depositors 2. Bankin! company can plan for its capital structure once the licence is !ranted 3. The business undertaken by the banking company should not frustrate the interest of public 4. The bankin! company can undertake business other than bankin! %ith the permission of annual !eneral body 3 Who of the following is not a party to the !"? #. Re!istrar of ssue 2. nvestment Banker 3.#d$ertisement #gency 4.Re!istrar of Companies % Which of the following is not shown as an asset in the balance sheet of a Bank? #. nvestments 2.Advances 3.Cash Balances %ith other banks 4.Borrowings & The credit policy of a bank does not consist of' #. (endin! policies 2.)uality control 3.(oan product mi* %.#d$ertising of loan products & Which of the following is a function of the agent bank relating to flow of money in the process of loan syndication? #. Receivin! notices relatin! to cancellation of any part of the loan 2. Callin! of loans in the event of default 3. 'ecei$ing the fee from the borrower and distributing among the participating banks 4. Receivin! notices relatin! to transfers of banks ( Which of the following is the parameter to recogni)e the ** unit as sick unit? #. The erosion in the net+%orth due to accumulated losses is up to 2&, of its net %orth durin! the previous account year 2. The erosion in the net+worth due to accumulated losses is up to ,-. of its net worth during the pre$ious account year. 3. The unit should have been in commercial production for at least five years 4. (ack of updatin! in technolo!ical development / Which of the following is not the ser$ice pro$ided by the *mall ndustries *er$ice nstitute? #. -rovidin! entrepreneurship development pro!rams 2..evelopmental efforts 3./*port promotion and liaison activities 4.0inancial support 1. *er$ice #rea #pproach 2*##3 is associated with? #. 'ural and *emi+urban branches of commercial banks 2.0rban branches of commercial

banks 3.Branches of commercial banks situated in metro cities 4..evelopment banks 1- Which of the following cannot be securiti)ed? #. 1uture rentals of a fishin! boat 2.2ire purchase receivables 3.Demand drafts recei$ed by the banker during clearing 4.1uture billin!s for an airline 11 Which of the following statements is true? #3 The special purpose vehicle 45-63 purchases the assets from the borro%er directly durin! the securiti7ation 23 The ori!inator and obli!or are the same persons in securiti7ation process 33 #dministrator collects the payments due from the obligor and passes it to the *!4 and follows with defaulters 43 8ort!a!e based securiti7ation provides hi!h yields to the investor 12 The important feature of an anticipatory letter of credit is that? #3 The letter of credit can be used as back+ to+ back letters of credit 23 The beneficiary under the letter of credit may recei$e payment e$en at the pre+ shipment stage 33 The beneficiary under the letter of credit may recei$e payment e$en at the post+ shipment stage 43 The cash advance is not permitted a!ainst such letter of credits 13 The *hipping guarantee is a? #. Type of a letter of credit 2.Guarantee issued by the ship captain to the purchaser 3.Guarantee issued to the borro%er to%ards the loan !ranted by the shippin! company %.Deferred payment guarantee issued by a banker at the re5uest of the consignee when the documents are not recei$ed and goods are recei$ed6 for facilitating the deli$ery of goods. 1% Which of the following statements is true? #3 The char!e card is a credit instrument 23 0nder this facility the cardholders need to pay amount %ithin ten installments 33 7ardholder has to pay the 1--. of the purchase amount within 3- days of purchase 43 The char!e card shall have revolvin! credit 1, Which of the following is not augmented feature of a credit card? #. -ersonal accident insurance 2.Cash %ithdra%als 3.Add+on facility 4. ssue of deferred guarantee 1& Which of the following is the disad$antage of going for public issue? #.(i9uidity to e*istin! shares 2. ncrease in visibility and reputation to the company 3.Better pricin! and placement %ith ne% investors 4.8eed to make continuous disclosures 1( Which of the following is not a criterion to select the n$estment Bankers? #. 8o professional memberships or incorporations are re5uired 2.General reputation in the

market 3.Good rapport %ith market intermediaries 4..istribution net%ork of the or!ani7ation 1/ Which of the following is not an asset of a bank? #. :otes and small coins 2."$erdue recurring deposits 3.5hort term loans 4.5taff advances 113 The banking company has restriction to sanction loan to? #. Directors of the bank 2.5taff %orkin! in the bank 3.5tudents !oin! abroad 4.-rofessionals 2- Which of the following is a non+depository institution? #. Credit unions 2.7ommercial banks 3.8utual funds 4.Re!ional rural banks Ans%ers; #3#" 233" 334" 434" &34" <33" =32" >34" $3#" #?33" ##33" #233" #334" #433" #&34" #<34" #=3#" #>32" #$3#" 2?33. 2 ?share? ? > Anticipatory (etter of Credit; Red Clause (etter of Credit; n this credit" the issuin! bank authori7es nominated bank" %hich is in beneficiary@s country" to !ive pre+shipment credit to the beneficiary. This advance is !iven to the beneficiary for purchase of ra% material A processin! A packin! of the !oods to be e*ported. t is !iven at the risk and responsibility of the issuin! bank and is unsecured. The pre+shipment advance !iven in this %ay %ould be adBusted a!ainst the documents tendered by the e*porter for ne!otiation. This type of (AC is kno%n as @Red Clause (etter of Credit@. Green Clause (etter of Credit; This credit is an e*tended version of red clause credit. n addition to %hatever has been !iven in red clause credit" it covers char!es for %arehousin! of !oods at the port of shipment" %hen %aitin! for ship or space and insurance therefor. Generally" the advance under this credit is !iven to the e*porter after the !oods are lod!ed in bonded %arehouse and %ould be adBusted once they are shipped on board. 0nder this credit" %arehouse %arrants are !iven as a security for the advance