Are you looking for a comprehensive resource to help you prepare for your upcoming exam on branch operations? Look no further! In this article, we provide you with 50 multiple choice questions (MCQs) on branch operations with answers in PDF format.
Not only does this give you the opportunity to test your knowledge of the subject, but it also serves as an excellent study guide, providing detailed explanations for each of the answers.
50 MCQs on Branch Operations with Answer
1. Banker’s Bank
a. GOI
b. RBI
c. SBI
d. PNB
Ans. B
2. Major portion of bank’s funds is deployed in ___
a. Lending
b. Investment
c. Credit
d. Advances
Ans. A
3. ___ are granted is one lump sum.
a. Bill finance
b. Term loans
c. Cash credit
d. Lending
Ans. B
4. Clean loans are also known as
a. Term loans
b. Secured loans
c. Unsecured loans
d. Credit loans
Ans. C
5. An ___ is one for which the banker. Has to rely upon the personal security of the borrows
a. Unsecured loan
b. Term loan
c. Secured loan
d. Both a & c
Ans. A
6. ___ are given by a bankers on the basic of his present net worth
a. Pledge
b. Secured loans
c. Mortgage
d. All of the above
Ans. B
7. ___ is a good example of regulation by other authorities
a. Indian Banking
b. Exchange banks
c. SEBI
d. All of the above
Ans. C
8. Rapid transformation & stupendous changes in Indian Banking are due to
a. Globalization
b. Liberalization
c. Massive developments in IT
d. All of the above
Ans. D
9. Today the main issue before Indian banking is
a. Communication
b. Managing the transformation
c. Customer regulation
d. None of the above
Ans. B
10. In order to protect farmers from ___ the co-operative movement in India was encouraged
a. Economic evils
b. Moral degeneration
c. Both a & b
d. Money lenders
Ans. C
11. State holders of banks are:-
a. Government of India
b. Depositors
c. General public
d. All of the above
Ans. D
12. ___ was the rule in rural societies
a. Unlimited liabilities
b. Limited liabilities
c. Fixed liabilities
d. All of the above
Ans. A
13. The ___ investors preferred dollars over other currencies
a. Euro bond
b. Euro markets
c. International markets
d. Euro commercial
Ans. A
14. Asset-liability management comprises ___ processes that affect the volume, mix, maturity, interest rate sensitivity, quality, liquidity of a bank’s assets and liabilities.
a. Strategic planning
b. Implementation
c. Control
d. All of the above
Ans. D
15. ___ is an important agent of economic growth.
a. Government stocks
b. Stock markets
c. Indian Banking system
d. All of the above
Ans. C
16. The primary goal of asset-liability management is to produce-
a. High quality income
b. Stable & large income
c. Growing net interest
d. All of the above
Ans. D
17. Primary goal of asset liability management is accomplished by achieving the optimum combination of
a. Assets
b. Liabilities
c. Financial risk
d. All
Ans. D
18. The ___ is a bankruptcy remote entity confined to activities envisaged under the transaction by its memorandum and articles of association set up specially for the purpose of the transaction
a. BIS
b. SPV (Special purpose vehicle)
c. Pass through
d. Pay through
Ans. B
19. State whether correct or not
According to Paget’s law of Banking, there is no exhaustive definition of bank at common law
a. False
b. Can’t say
c. Not sure
d. True
Ans. D
20. ___ is best described as the repackaging of receivables into a tradable form
a. Securitization
b. Exchange
c. Servicing
d. All of the above
Ans. A
21. ___ is the non recourse discounting of export receivables.
a. Securitization
b. For fating
c. For fact
d. Exchange
Ans. B
22 ___ Created history in first global money market.
a. Japanese
b. U.S
c. India
d. Chinese
Ans. B
23 Internationalization of banking took place after
a. World war II
b. World war I
c. Financial crisis
d. Oil crisis
Ans. A
24 First oil crisis taken place in ___
a. 1998
b. 1973
c. 1987
d. 1988
Ans. B
25. ___ overseas is the natural extension of grow the strategies for banks
a. Financial intermediation
b. Foreign investors
c. US and European banks
d. None of the above
Ans. A
26. ___ has advanced reason for the growth of international banking and argument it in his paper “Professional trading exchange Rate risk and the growth of international Banking”
a. Philip Kotler
b. Phillip callier
c. Frederick Taylor
d. All of the above
Ans. B
27. According to History. ___ had developed a banking system.
a. Baby lanais
b. Japanese
c. Chinese
d. Americans
Ans. A
28. ___ indicates the extent to which the banks can coverage its non-interest cost exclusively through non-interest cost revenue for a given volume of a business
a. Burden efficiency ratio
b. Cash coverage ratio
c. Non-performing assets ratio
d. Aggregate deposits
Ans. A
29. Current period’s business/last period’s business refers to –
a. Aggregate deposits
b. Average working funds
c. Total business growth ratio
d. None
Ans. C
30 This indicates the advances the advances mix
a. Aggregate deposits
b. Priority sector ratio
c. Total debt
d. Net worth
Ans. B
31. “For fact” is derived from the ___ work “a forfeit” which means surrender of rights
a. French
b. Latin
c. German
d. Greek
Ans. A
32. A high aggregate deposits figure signifies a
a. Bank’s brand equity
b. Branch network
c. Deposit mobilization strength
d. All of the above
Ans. D
33. Working finds are ___of a bank on a particular data
a. Total resources
b. Total liabilities
c. Total assets
d. All of the above
Ans. D
34. Total debt equals to
a. Total borrowings plus aggregate deposits
b. Borrowings in India and Outside India
c. Both a & b
d. None of the above
Ans. C
35. It stands for care strength of a bank and denotes a bank’s margin of safety
a. Net worth
b. Gross advances
c. Net profits
d. Working funds
Ans. A
36. This ratio denotes a bank’s degree of leveraging relative to its net worth.
a. Debt-equity ratio
b. Total debt to net worth
c. Both a & b
d. None of the above
Ans. C
37. Food credit is included in
a. Gross advances
b. Non-interest income
c. Operating expenses
d. Capital adequacy
Ans. A
38. Main source of funds for the banks is
a. Government
b. Deposits
c. Investments
d. All
Ans. B
39. Deposits are classified as
a. Term deposits
b. Saving deposits
c. Deposits payable on demand
d. All of the above
Ans: D
40. Funds are profitably deployed in the form of
a. Loans
b. Advances
c. Investments
d. All of the above
Ans. D
41. State whether true or not:
1. A documentation fee is not incurred in straight forward forfeit transactions
2. If extensive documentation and legal work is necessary, a documentation fee may be charged
a. 1 – T, 2 – F
b. 1 – T, 2 – T
c. 1 – F, 2 – F
d. 1 – F, 2 – T
Ans. B
42. Two separate categories of securitization structure are:
a. Direct ownership indirect ownership
b. Pass through, Pay through
c. Primary. Secondary
d. None of the above
Ans. B
43. Scenario of Indian banking changes due to massive developments in the fields of ___ & ___
a. IT & communication technology
b. IT & IS
c. Globalization & liberalization
d. All of the above
Ans. A
44. Today Banking provide tailor-made solutions to the customers with a focus on ___ and ___
a. Customer convenience, customer delight
b. Customer taste, customer preferences
c. Customer economic states, customer honesty
d. All of the above
Ans. A
45. The financial statements of banks include _____ and ___
a. A profit account, loss account
b. Balance sheet. Accounts
c. Balance sheet. Profit or loss account
d. Both a & b
Ans. C
46. A balance sheet is a statement of ___ and ___ on a given date say March 31
a. Assets, liabilities
b. Profit, loss
c. Both a & b
d. None of the above
Ans. A
47. Banking in India is mainly governed by ___ & ___
a. Government of India, Reserve Bank of India
b. Banking regulation Act, 1949 and reserve bank of India act, 1934
c. Both a & b
d. None of the above
Ans. B
48. Banking according to banking regulation act is the acceptance of deposits from public for ___ and ___.
a. Deposits, lending
b. Leading investments
c. Deposits withdrawal
d. All of the above
Ans. B
49. Aggregate deposits include deposits from ___ and deposits from ___
a. Public, bank
b. Private, public
c. Individual, companies
d. None of the above
Ans. A
50. Limits should be appropriate to the ___ and ___ of the bank
a. Assets, liabilities
b. Size complexity, financial condition
c. Both a & b
d. Funds, deposits
Ans. B
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