Finance and Economics Quiz 274

The concept of base rate to be introduced with effect from July 1, 2010 would include
(a) product-specific operating cost
(b) credit risk premium
(c) tenor premium
(d) All of the above

Answer:

Credit appraisal can be done on a simplified basis by banks while carrying out credit appraisal of smaller units.
(a) TRUE
(b) FALSE

Answer:

BCSBI stands for
(a) Banking Codes and Standards Board of India
(b) Banking Credit and Standards Board of India
(c) Banking Codes and Service Board of India
(d) Banking Credit and Service Board of India

Answer:

While bulk of the forex treasury operations is on behalf of the clients, the major portion of domestic treasury operations consists of proprietary trading
(a) FALSE
(b) TRUE

Answer:

Banks have to ensure that underwriting commitments taken up by them in respect of primary issue of shares or convertible debentures or units of equity-oriented mutual funds comply with the ceiling prescribed for the banks' exposure to the capital markets.
(a) FALSE
(b) TRUE

Answer:

The concept of limited liablity introduced in Indian banking resulted in establishment of
(a) joint stock banks
(b) urban banks
(c) rural banks
(d) none of the above

Answer:

Derivative products like swaps cover only foreign exchange risks and not interest rate risks.
(a) FALSE
(b) TRUE

Answer:

Which of the following types of account fall under the time deposit category?
(i) Current account
(ii) Term deposit account

(a) only (ii)
(b) only (i)
(c) (i) and (ii)
(d) None of the above

Answer:

An efficient financial intermediation process has which of the following components:
(i) effective mobilisation of savings
(ii) their allocation to the most productive uses

(a) only (i)
(b) only (ii)
(c) (i) and (ii)
(d) None of the above

Answer:

A Nostro account is an account which an exporter maintains with a bank abroad
(a) FALSE
(b) TRUE

Answer: