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IIBF Exam Question and Answer 2023

 




Q.1 Which of the following definitions is most correct? UCPDC 500 is:

Ans. Set Of Rules Framed by ICC governing LC business Globally.


Q.2 Currency notes are issued by

Ans. RBI


Q.3 Bank does not give loans against

Ans. lottery ticket


Q.4 Bank having maximum number Of Branches in India

Ans. State Bank Of India


Q.5 100/- Rupee note is signed by

Ans. RBI Governor


Q.6 Who is the Present Governor Of RBI

Ans. Shaktikanta Das


Q.7 E Or S Means

Ans. Either or Survivor


Q.8 Bank does not provide loans for

Ans. Drinking & Gambling


Q.9 KYC Means

Ans. Know your Customer


Q.10 PPF means

Ans. Public Provident Fund


Q.11 Coins are issued by

Ans. Government Of India


Q.12 The Modern Bank Ltd., should have a minimum Of Rs– Crores as Tier I Capital at the rate of

minimum Of % respectively as per RBI guidelines applicable to Indian Banks.

Ans. 2700,4.50%


Q.13 Which Of the following statement is correct?

Ans. Foreign Exchange markets are dynamic and round-the-clock markets.


Q.14 If the market quotes USD/INR as 43.61/63, at what rate can you buy USD at the given quote:

Ans. 43.63


Q.15 Bank does not give loans against

Ans. lottery ticket


Q.16 A correspondent in Japan wants to fund his Vostro account for Rs 10.00 million. At USD/INR at

63.56/57 and JPY at 109.60/70, how much JPY should the correspondent pay into your Nostro

account with him, assuming no margins are loaded:

Ans. 251762


Q.17 Minimum age required to open SB account in the bank

Ans. 10 Years


Q.18 Highest denomination of currency notes issued by RBI is

Ans. Rs. 1,000/-


Q.19 NRI Means

Ans. Non-Resident Indian


Q.20 PAN Means

Ans. Permanent Account Number


Q.21 Who is the present Union Finance Minister Of India?

Ans. Nirmala Sitharaman


Q.22 Business Correspondent means

Ans. An agent who provides Banking Services


Q.23 Internet banking refers to

Ans. Operation Of account through internet


Q.24 Nomination Once done Can

Ans. Be Canceled


Q.25 What is the amount of Overdraft Facility Sanctioned Under PMJDY is Classified as MUDRA loans under PMMY?

Ans. 5,000/-


Q.26 The loans Sanctioned By banks / NBFCs / MFIs on or after ——up to, 10 lacs for Small Business

income-derived activities are Known as PMMY loans.

Ans. 08-Apr-15


Q27. Who is eligible to get the MUDRA Loans under PMMY out of the following borrowers?

Ans. Small fruit vendors, vegetable sellers, etc.


Q.28 ATM means

Ans. Automated Teller Machine


Q.29 PMMY Loan is given for which purpose?

Ans. Income Generation Purpose


Q.30 What are the Collateral/securities to be kept with banks for getting loans for MSE under

PMMY?

Ans. NIL


Q.31 From where the PMMY loan can be availed?

Ans. Public Sector Banks, Private Sector Banks, Foreign Banks, Cooperative Banks,


Q.32 What is the role Of Mudra under PMMY loans?

Ans. Acts as a Refinance Agency and Refinances to all banks, NBFCs, MFIs for onward lending to

customers under different categories of PMMY loans, as per need of the customer.


Q.33 The borrowers can avail of the credit in a hassle-free and flexible manner with the MUDRA

CARD which is a—–

Ans. Debit Card with a Sanctioned limit


Q.34 MUDRA Card is a debit card on which payment platform?

Ans. Rupay


Q.35 Who issues the MUDRA Card to a customer?

Ans. Banks either directly or in association with MFLs


Q.36 PMMY loans are applicable to—–?

Ans. all banks all over India


Q.37 PPMY Loans are provided for what Tenure?

Ans. Depends on the Cash flows of the business and is decided by the lending Institution


Q.38 What are the Interest rates of the PMMY loans extended by Banks, NBFCs, MFLs to the

borrowers?

Ans. Reasonable rates decided by lending banks, NBFCs, MFLs that should fall within the overall RBI

Guidelines


Q.39 Where are the Frequently Asked Question (FAQs) on PMMY Loans available for the information

of the Lending Institutions/public?

Ans. MUDRA website


Q.40 Who monitors the Implementation of PMMY progress at the National level?

Ans. MUDRA / Department of Financial Service


Q.41 Sample Project Profiles for running or setting up of micro/small enterprises is available at——-

Ans. MUDRA Website


Q.42 MUDRA has been set up by whom?

Ans. Government Of India


Q.43 Maximum amount of Check

Ans. No limit


Q.44 Pan Number is required for

Ans. Deposit Rs.50,000/- & above


Q.45 TDS means

Ans. Tax Deducted at Source


Q.46 What is the Purpose for which MUDRA loan can be availed for Carrying On any activity related

to——-?

Ans. Manufacturing, Processing, Trading, Services


Q.47 What does PMMY Stand For?

Ans. Pradhan Mantri Mudra Yojana


Q.48 Loan of ‘ 5 lacs is covered under which category?

Ans. Kishore


Q.49 How much loan can be availed under the “Shishu” category?

Ans. 50,000/-


Q.50 What is the maximum loan amount available under PMMY?

Ans. 10.00 lacs


Q.51 Life Insurance means

Ans. Insurance Of Human


Q.52 Defaulter Of Loan means

Ans. Not paying loan installments


Q.53 PMJDY LIC Insurance Of Rs.30,000/- is available for first-time accounts opened

Ans. Between 15 August 2014 and 26 January 2015


Q.54 Under APY, Fixed Pension can be chosen from:

Ans. Rs. 1,000/-, Rs.2,000/-, Rs.4,000/-, Rs. 5,000/-


Q.55 Can an illiterate person be issued, Debit Card?

Ans. Yes


Q.56 Under PMSBY, partial disability claim is available for:

Ans. Rs. 1 lac


Q.57 Under PMSBY, an accidental death claim is available for:

Ans. Rs.2 lac


Q.58 What is the validity period of the check?

Ans. 3 months from the date of issue


Q.59 Which type of deposit earns a higher interest rate?

Ans. Fixed Deposit


Q.60 What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

Ans. Covers life insurance up to Rs.2 lac


Q.61 What is Pradhan Mantri Suraksha Bima Yojana (PMSBY)?

Ans. Accidental Insurance Cover


Q.62 What is the minimum deposit required while opening a BSBD Account?

Ans. No Minimum deposit required


Q.63 What is the maximum amount Of deposits acceptable in Small accounts?

Ans. Rs. 50,000/-


Q.64 Who is Bank Mitra?

Ans. Banking Correspondents engaged by Banks


Q.65 What is meant by Aadhaar Seeding?

Ans. Linking Of Aadhaar with Bank Account


Q.66 What is Direct Benefit Transfer?

Ans. Transfer Of Social Benefits / Subsidies directly into Bank accounts of beneficiaries


Q.67 Maximum Tenure Of Fixed Deposit is

Ans. 10 Years


Q.68 As per Reserve Bank Of India directives the Minimum Capital Adequacy Ratio and minimum

Tier I Capital the Modern Bank is required to maintain as On 31.03.2007 should be—-respectively.

Ans. 9% and 4.5%


Q.69 Interest rate risk is a type of

Ans. Market risk


Q.70 If the Volatility per annum is 25% and the number of trading days per annum is 252, Find the

Volatility per day.

Ans. 1.58%


Q.71 Contents Of locker are

Ans. Only Known to the hirer


Q.72 Net Interest Income is

Ans. Difference between interest earned and interest paid


Q.73 MGNREGS Stands for

Ans. Mahatma Gandhi National Rural Employment Guarantee Scheme


Q.74 Interest On FDRs is Compounded on

Ans. Quarterly Basis


Q.75 Fixed Deposit Can

Ans. Withdrawn before maturity


Q.76 Upon detection Of a counterfeit note at the counter, Bank

Ans. Impound the Note and issue a receipt


Q.77 Mutilated notes

Ans. Can be exchanged at Bank


Q.78 Interest On Savings Bank Deposits are paid

Ans. Half-yearly


Q.79 Account payee checks can be paid

Ans. By deposit in Bank account


Q.80 Payment of check can be stopped by

Ans. Drawer of check


Q.81 Based on the Gross Income given above, the likely Capital Charge for Modern Bank Ltd., as of

March 31, 2007, to cover Operational Risk Under Basic Indicator Approach Shall be

Ans. 450 Crores


Q.82 The Modern Bank Ltd., Will require total Capital Funds For Covering Credit Risk. As of March

31, 2007, to Comply Based II norms Of Rs.—–Crores.

Ans. 5400 Crore


Q.83 All PMMY Loans will be governed by–, Formulated by MUDRA, in Consultation with DFS, rating agencies, MFIN and Sa-Dhan, and Other Stakeholders For adoption by all the lending institutions.

Ans. MUDRA Loan Charter


Q.84 The Basel Committee has defined gross income as net interest income and plus net non interest income and has allowed each relevant national Supervisor to Define Gross Income in accordance with the prevailing accounting practices. Accordingly, the Reserve Bank Of Indian in the draft guidelines issued on 11.03.2005 for implementation Of the new Capital adequacy framework has modified the Gross Income definition slightly. The Net Interest Income has been replaced by

Ans. Net Profit


Q.85 We should keep our savings with banks because

a) It is safe

b) Earn interest

c) Can be withdrawn anytime

d) All of above

Ans. All of above


Q.86 ATM password to be shared only with

a) Spouse

b) Obedient son

c) Obedient daughter

d) None of above

Ans. None of above


Q.87 Nomination can be done in

a) Savings Bank account

b) Recurring Deposit account

c) Fixed Deposit account

d) All of above

Ans. All of above


Q.88 ............is the logo of

a) Pradhan Mantri Jan Dhan Yojana

b) Central Bank of India

c) Reserve Bank of India

d) None of above


Q.89. Loans from money lenders are

a) With a High rate of interest

b) No proper accounting

c) No transparency

d) All of above

Ans. d) All of above


Q.90 Timely repayment of loans results

a) Good reputation

b) No tension

c) Easily availability of loan in future

d) All of above

Ans. d) All of above


Q.91 Defaulter of loan means

a) Not paying loan installations

b) bad reputation

c) Illegal activities

d) None of above

Ans. d) None of above


Q.92 General Insurance relates to insurance against

a) Fire

b) Theft

c) Burglary

d) All of above

Ans. d) All of above


Q.93 Aadhaar is

a) 12 digit number card

b) Identity proof issued by UIDAI

c) Both (a) & (b)

d) None of above

Ans. c) Both (a) & (b)


Q.94 Which is prohibited for writing on currency notes?

a) Political message

b) Religious message

c) Personal message

d) All of above

Ans. d) All of above


Q.95 PAN means

a) A kind of utensil

b) Primary Account Number

c) None of above

Ans. c) None of above


Q.96 Which currency note has a security thread?

a) Rs.50/-

b) Rs.100/- 

c) Rs.500/-

d) All of above

Ans. d) All of above


Q.97 Gold and silver ornaments should be kept in bank lockers

a) It is safe

b) No risk of theft

c) Both (a) & (b)

d)None of above

Ans. c) Both (a) & (b)


Q.98 Bank Pass Book is

a) Issued by Bank

b) Contains transaction details of Bank account

c) Shows balance in the account

d) All of above

Ans. d) All of above


Q.99 Education Loans

a) Cover tuition fees & expenses

b) Are repayable after

completion of course

c) Granted for studies in India &

abroad

d) All of above

Ans. d) All of above


Q.100 Who can open a bank account?

a) Indian citizen

b) Non Resident Indian

c) Illiterate

d) All of above

Ans. d) All of above


Q.101 Bank draft is issued by

a) Private Sector Banks

b) Regional Rural Banks

c) Public Sector Banks

d) All of above

Ans. d) All of above


Q.102 Self Help Group involves

a) Group of 5 to 20 people

b) Regular saving habits

c) Inter-lending within the group members

d) All of above

Ans. d) All of above


Q.103 Payment of check can be stopped by

a) Beneficiary

b) Nominee

c) Drawer of check

d) All of above

Ans. d) All of above


Q.104 While making a nomination, a signature of a nominee is required on

a) Account Opening Form

b) Nomination form

c) Affidavit

d) None of above

Ans. d) None of above


Q.105 ATM can be used for

a) Cash withdrawal

b) Account inquiry

c) Statement of account

d) All of above

Ans. d) All of above


Q.106 . All the time opening an account, banks advise the customers to indicate the nominee to whom amounts are payable in the event of the death of depositors. Which one of the following statements is correct regarding nomination? (Select the most appropriate option from the following).

a) The amounts laying in the account are transferred to the nominee after obtaining the legal heir status.

b) For a single deposit account, there may be more than one nominee and the outstanding balance is distributed by the bank as per the ratio advised by the

deceased account holder.

c) Nomination can be made in favour of legal entities also i.e. associations, trusts, Companies etc.

d) A single depositor may nominate a person to whom in the event of the death of the depositor the amount to his credit may be paid by the banking

company.

Q.107 . Banks issue demand drafts (DD) on customers’ requests for the purpose of remittance of funds to third-party beneficiaries. Banks should ensure that demand drafts of ——- and above are issued invariably with account payee crossing. (Select the most appropriate option from the following).

a) Rs. 15,000

b) Rs. 20,000

c) Rs. 50,000

d) Rs. 10,000


Q.108. Under which one of the following bodies is the Banking Ombudsman Scheme implemented for the redressal of customers’ grievances? (Select the most appropriate option from the following).

a) RBI

b) Ministry of Finance

c) Bank’s Central Offices

d) State Governments


Q.109. Bank A sanctioned and disbursed a sum of Rs. 25,000 on 1/4/20XX. It charges 9% interest on the account on quarterly bases. The amount of interest to be charged to the account on 30/06/20XX would be (Select the most appropriate option from among the following).

a) Rs. 2,250

b) Rs. 600

c) Rs. 563

d) None of the above


Q.110. An NRI ——- a PPF account. (Select the most appropriate option from the following).

a) Cannot open

b) Can open

c) Can open provided the deposits in the account are made in foreign currency

d) Can open but he/ she will get SB interest rate


Q.111. To trace the money laundering activity, the general stages, in sequence are observed so that the money appears legitimate at the last stage. Which one of the following correct sequence of money laundering? (Select the most appropriate option from the following).

a) Layering, Placement, Integration

b) Placement, Integration, Layering

c) Placement, Layering, Integration

d) Integration, Disposal, Layering


Q.112. When a customer deposits money by opening an account with a bank, the relationship between the bank and his customer is that of ——– (Select the most appropriate option from the following).

a) Creditor – Debtor

b) Debtor-Creditor

c) Bailee – Bailer

d) Lessor – Lessee


Q.113. The educational Loan Scheme of banks aims at providing financial support to students for pursuing higher education in India and abroad. Which of the following expenses are not considered while arriving at the Educational Loan Amount? (Select the most appropriate option from the following).

a)College/ courses fees i.e. examination fees, Hostel charges

b) Cost of books, equipment, computer/laptop etc.

c) Travel expenses for students in India, mess charges, and out-of-pocket expenses essential for studies

d) Life insurance premium for life cover of student borrower, if applicable


Q114. When a customer avails an overdraft/loan from the bank, the relationship between the bank and his customer is that of ———- (Select the most

appropriate option from the following).

a) Trustee – Beneficiary

b) Debtor-Creditor

c) Creditor – Debtor

d) Bailee – Bailer


Q115. Which of the following salient features of the Basic Savings Bank Deposit Account (BSBDA) are correct? 

(i) A kind of Demand deposit opened to extend normal banking facilities with no minimum balance, no bank charges and with ATM (Debit) card facility. 

(ii) Withdrawal from this account, including through ATM, in a month, is restricted 

(iii) KYC and other CDD (Customer due diligence) norms are followed at the time of opening of the BSBD account. 

(iv) While opening BSBDA, no other Saving Bank Account will be permitted to be maintained in the bank. If there is any other SB account, the same is to be closed within 30 days. (Select the most appropriate option from the following).

a) Only (ii), (iii) and (iv)

b) Only (i), (ii) and (iv)

c) Only (i) and (ii)

d) (i), (ii), (iii) and (iv)



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