Quiz Sample Paper

Banking Practices and Regulations (Quiz-2)

Professor K. Subramanian (RBI)

Time: 10 Minutes (MCQ)

Max. Marks: 10

Closed Books / Closed Notes

1) CAMEL exercise helps in (Answer – A)

a. Assessing the performance rating of the bank

b. The capital adequacy of the bank

c. None of the above

2) Business per employee is equal to

a. Answer is ((Average Deposits + Average Advances) / Average number of employees))

3) CRR is considered as

a. % of prescribed demand and time liabilities of a bank kept with regulator

4) Run in a bank means

a. The depositors are withdrawing deposits

5) Liquid Assets in a bank consists of (Answer – E)

a. Cash and Gold

b. Balances with the regulator

c. Balances with other banks

d. Investments in Security

e. All the Above

f. None of the above

6) Should the regulator and the supervisor be the same (No)

7) Penalties for non-maintenance of CRR are

a. Interest of 2% above bank rate

b. Interest of Bank Rate + 4%

c. Interest Rates varies according to period of default

d. None of the above

8) What is the difference between inspection and reporting (Answer – A)

a. Inspection is on-site while reporting is offsite

b. Inspection means visiting the Go-downs of borrowers to verify securities and reporting means the submission of stock statements

c. None of the above

9) Regulation is relevant now due to (Answer – D)

a. Protection of depositors interest

b. Benefits accruing to economy as a whole

c. Public Interest

d. All the Above

e. None of the above

10) Basal 2 accord focuses on (Answer – E)

a. Capital Adequacy

b. Measurement of risks

c. Quantitative assessment of overall banking performance

d. Preferential Norms

e. All the Above

f. None of the above