SUGGESTED QUESTIONS FOR AHSEC FINAL EXAM-2019 SUB- BANKING


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UNIT-1
FOR 1 MARKS
Q.1. In which year fourteen Indian commercial bank were nationalized?  V.V.I   Ans:- 1969
Q.2. In which year SBI was established?     V.V.I             Ans:- 1 July, 1955
Q.3. In which year imperial bank was nationalized.    V.V.I    Ans:- 1 July, 1955
Q.4. What was the previous name of SBI?          Ans:- Imperial bank of India
Q.5. What do you mean by schedule bank?
Q.6. In which year Lead bank introduce in which year?    Ans:- December 1969

FOR 2/3 MARKS
Q.1. Write short note on Presidency bank?    V.V.I
Q.2. What is Unit banking?
Q.3. Give two examples of Public and Private sector bank?   V.V.I
Q.4.Give the meaning of C.R.R.?
Q.5. Name any two central banking functions perform by SBI?
Ans:- Banker’s Banking, Holding.
Q.6. What is cash credit?
Q.7.Write short-note on Imperial bank?

FOR 5/8 MARKS
Q.1. Briefly the Utility and Agency services rendered by commercial bank?  V.V.V.I
Q.3. Difference between Unit and branch banking?
Q.4.What is lead bank scheme? State the effect of this scheme? V.V.I
Q.5. Discuss the role of SBI in India economy?
Q.6. Discuss the function of public sector bank in India?
Q.7. What are the function of SBI?
Q.8. State the objectives and achievements of bank nationalisation in India?
Q.9.What is group banking? What are its advantages and disadvantages?

UNIT-2
FOR 1 MARKS
Q.1. The Reserve bank of India established in the year_______?       Ans:-  1 April 1935.  
Q.2. Who issue one rupee notes?    Ans:- Ministry of finance government of India.
Q.3. Where is the head office of Reserve bank of India?        Ans:- Mumbai      
Q.4. The Board of director of RBI consists of _______ Members?  Ans:-  20 Members   
Q.5. Which method is adopted by the RBI for issuing notes?   Ans:- Minimum reserve system.
Q.6. Governor of RBI is appointed of 4/5/10 years?    Ans:-  5 years
Q.7. _______ is the apex monetary institution of India?    Ans:-  Reserve bank of India.
Q.8. Who appoints the governor of RBI?  Ans:- Central government.
Q.9.  In which year RBI adopted the minimum reserve system of note issue? Ans:- 1956

FOR 2/3 MARKS
Q.1. What is Bank rate?
Q.2. Name any two departments of the Reserve bank of India?   V.V.I
Q.3. State the minimum reserve kept by the RBI to issue currency notes? V.V.I
OR. What is the full reserve system of note issue?
Q.4.Write short-note on the lender of last resort.
FOR/4/5/8
Q.1. Explain briefly about the difference credit control adopted by RBI?    MOST   V.V.I (FOR 8 MARKS)
OR, Discuss how reserve bank of India controls money and credit in the economy.
Q.2. Explain the tradition functions of RBI?    V.V.I.    (FOR 8 MARKS)
Q.3. Explain briefly the system of issuing currency notes by the Reserve bank of India?

UNIT-3
FOR 1 MARKS
Q.1. Money market is the market is the short-term funds? (True or False) V.V.I
Q.2. Capital market is the Market of Long-term funds?  (True or False)  
Q.3.What is foreign exchange market?        MOST V.V.I
Q.4. What is Primary market?
Q.5. What are the two sector of Indian money market?
Q.6. Write the full form of OTCEI?

FOR 2/3 MARKS
Q.1. State any two function of stock exchange?                         V.V.I
Q.2. What do you mean by stock exchange?                               V.V.I
Q.3. What are the two different types of financial market?
Q.4. What are the main sub-market of financial market?         V.V.I
Q.5. Name two sub-market of Indian money market?
Q.6. Write a brief note on capital market and Money market?
Q.7. write short-not on foreign exchange market?

FOR 5/6/8 MARKS
Q.1. What are the difference between money market and capital market? V.V.I
Q.2. Discuss the role and function of non-bank financial institution?
Q.3. Discuss five features of Indian capital market?     
Q.4. Discuss about the institution participating in Indian money market?  V.V.I
Q.5. What is financial market? Mention the name of the various kinds of market? Explain any one of them?         
Q.6. Discuss the five features and Drawbacks of Indian money market? V.V.I

UNIT-4
FOR 1 MARKS
Q.1. NABARD was established in the year 1982/1985/1987. ?     Ans:- 1982
Q.2 Write full form of IFCI, MMMF, NABARD, SIDC, SIDBI
Q.3 Name two Non-Bank financial institution of India?
Q.4. Asian Development Bank was established in 1956/1960/1966.   Ans:- 1966
Q.5. Which is the first development bank established in India?       Ans:- IFCI
Q.6. In which year IMF came in to existence? Ans:-27 December, 1945
Q.7. In which year IFCI Was established?    Ans:- 1948
Q.8. In which year World Bank came into existence?   Ans:- 1945

FOR 2/3 MARKS
Q.1. State the meaning of Development bank with examples? V.V.I
Q.2. What is mutual fund?
Q.3. Write short-note on NABARD?

FOR 5/8 MARKS
Q.1. Discuss the main function of development bank? MOST V.V.I
Q.2. What are the objective of world bank/IBRD?
Q.3 What are the objectives of IMF?   MOST V.V.I
Q.4. What are the function and role of NABARD?


UNIT-5

FOR 1 MARKS
Q.1. Give an examples of Negotiable instrument? Ans:- bills of exchange, promissory note, cheque.
Q.2. The word ‘Hundi’ is borrowed from Sanskrit word hund which means to collect?
Q.3. In which year negotiable instrument Act was passed? Ans:- 1st march, 1882
Q.4. How many days grace are allowed in a bill?  Ans:- Three days
Q.5. Mention any one two types of hundies? Ans:- Darshani hundi, jokhmi hundi.

FOR 2/3 MARKS
Q.1. Define cheque?
Q.2. Discuss briefly what is meant by ‘payment in due course’?
Q.3. Draw a specimen copy of a cheque? V.V.I
Q.4. Define Holder and Holder in due-course? V.V.I
Q.5. State the difference between promissory note and cheque? V.V.I
Q.6. Draw a specimen copy of bills of exchange?

FOR 5/8 MARKS
Q.1. What do you mean by endorsement? Who can endorse? Discuss briefly different kind/forms of endorsement?   
Q.2. What are the difference between bills of exchange and cheque?
Q.3. Define Hundi? Discuss the different types of Hundi?  V.V.I
Q.4. What is Negotiable instrument? What are the essential characteristics of negotiable instrument?
Q.5. What are the essential of a valid endorsement? V.V.I (Ans:- Note Question no:-17)


UNIT-6
FOR 1 MARKS
Q.1. What is order cheque? 
Q.2. Give an example of material alteration of cheque? Ans:- Alteration of the date of the cheque.
Q.3. What is stale cheque?
Q.4. Can crossed cheque be enchased at the bank counter? Ans:- No
FOR 2/3 MARKS

Q.1. Who can cross a cheque? V.V.I
Q.2. Draw specimens of different types of crossing of cheque?
Q.3. Briefly explain material alteration of cheque? 
Q.4. Explain the circumstances under which a bank can dishonor cheque? OR, State the conditions for dishonor of cheque.  V.V.I
Q.5. Draw a specimen of a blank cheque?

FOR 5/6/8 MARKS
Q.1. Under what conditions banker must pay a cheque? V.V.I  
Q.2. What precaution should be taken by a banker while making payment of a cheque?
 Explain. OR State the precaution of banker should take before paying a cheque? V.V.I
Q.3. What is order cheque? Mention its features? What are the advantages and disadvantages of Order cheque?

UNIT-7

FOR 2/3 MARKS
Q.1. What is overdraft? 
Q.2. What is mortgage? 
Q.3. what is Cash Reserve Ratio?
Q.4. What is statutory liquidity Ratio?
Q.5. What is cash credit? 
Q.6. What is letter of credit?
FOR 5/8 MARKS
Q.1. Discuss the principles followed by the commercial banks in granting loans and advances? MOST V.V.I
Q.2. Give the meaning of liquidity? State the factors that affect cash reserve of commercial bank?
V.V.I (Note- Q. no:- 2) 
Q.3. Explain the term cash reserve and cash credit? 
Q.4. State the meaning of cash reserve? Distinguish between cash balance and cash reserve? 
Q.5. Discuss the principles of sound lending to be followed by commercial bank?




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