Practice Chapter Test Questions and Answers

• If CRAR falls to less than ___________ percent, the RBI asks banks to submit a capital restoration plan, restricts new businesses and dividend payments.
• Which of the following Statements about IREDA is/are True? I- It is registered as Non-Banking Financial Company (NFBC) with Reserve Bank of India (RBI). II...
• Which of the following is a window for the banks to borrow from RBI in an emergency when inter-bank liquidity dries up completely.
• Which of the following is the Highest Body in India with respect to Direct Taxes?
• What is the major difference between a Cash Credit (CC) and an Over Draft (OD) facility?
• Basel committee on Banking Supervision (BCBS) was established in _______.
• Export Credit Guarantee Corporation of India comes under the administrative control of ______________.
• Which of the following is a capital transaction?
•   Expand FEDAI
• In terms of market efficiency, short selling is most likely:
• Which of the following correctly defines Yield to maturity (YTM)?
• What is the indicator for monitoring of Asset Quality in new Prompt Corrective Action by RBI for Scheduled Commercial Banks?
• Expand CAMELS as one of the rating systems used by RBI
• Basel III capital regulations are based on 3 mutually reinforcing pillars. These pillars are: I.          Minimum Capital Standards II.    �...
• Which of the following is/are correct regarding Capital Conservation Buffer? I It is required when there is excess growth in bank’s credit portfolio ...
• What is one of the major objectives of SIDBI?
• Which of the following category(s) is/are covered under Agriculture for which the banks can fulfil the criteria under Priority Sector lending? A.Farm cred...
• ABC Ltd’s purchases during the year were Rs 200000. The balance sheet shows an average accounts payable balance of Rs 15000. ABC’s payables per...
• Bank credit to NBFCs (including HFCs) for on-lending will be allowed up to what limit of an individual bank’s total priority sector lending in case of co...
• Sh Ajay Kumar Chaudhary who is appointed as a new Executive Director of RBI, was earlier designated as:
• The Reserve Bank of India (RBI) has proposed to extend the term-liquidity facility of Rs 50,000 crore offered to emergency health services till ………�...
• Which of the following is not a financial asset in accordance with IND AS 109?
• Which of the following statements is incorrect regarding India's pension sector reforms?
• Where are forward contracts typically traded?​
• What is meant by a “zero-sum game” in the context of forward contracts?​
•  Which of the following is a key risk associated with forward contracts?​
• What is the typical settlement method for futures contracts?​
• Which accounting concept assumes that a business will continue operating into the foreseeable future?​
• What is the minimum Capital Adequacy Ratio (CAR) required in India under Basel III (including CCB)?
• What type of risk does the Liquidity Coverage Ratio (LCR) aim to address under Basel III?​
• What is the risk weight of cash while calculating Risk Weighted Assets (RWA)?​
• What is the minimum DSCR typically required by lenders?​
• The Cash Conversion Cycle (CCC) is calculated as:​
• A high current ratio may sometimes indicate:​
• Which of the following methods helps convert receivables to instant cash?​
• Which of the following is considered a spontaneous source of working capital?​
• When IRR equals the cost of capital, what will be the value of NPV?​
• A key limitation of IRR is that:​
• Which funding source is most likely to be used in the Late Stage (Pre-IPO) of the funding lifecycle? ​
• What distinguishes systematic risk from unsystematic risk?​