Miscellaneous Questions and Answers

Answer: C

Correct answer: HDFC

HDFC Bank is India’s largest private sector bank, by assets, market capitalisation and profit. ICICI Bank is the second. HSBC is a foreign bank and so outside the comparison.

Answer: B

Correct answer: Card Verification Value

The CVV is the three-digit number printed on the back of a card (four on the front for American Express). It is not embossed and is not stored in the magnetic stripe, so quoting it is evidence that the person has the physical card - which is why it is asked for in card-not-present transactions.

Answer: A

Correct answer: Foreign Currency Convertible Bond

An FCCB is a bond issued abroad in a foreign currency which the holder may convert into the issuer’s equity shares. It gives the company cheap debt - the conversion option lets it pay a low coupon - while the investor gets a bond’s safety with a share of any upside. The risk to the issuer is that the currency moves against it before redemption.

Answer: C

Correct answer: Syndicate Bank

Prathama Bank, the first regional rural bank, was set up on 2 October 1975 at Moradabad with Syndicate Bank as its sponsor. RRBs were created to bring institutional credit within reach of small and marginal farmers and rural artisans.

Answer: C

Correct answer: Punjab National Bank

Punjab National Bank, founded at Lahore in 1894, was the first Indian bank established entirely with Indian capital and Indian management. It was a Swadeshi undertaking, and Lala Lajpat Rai was among its founders and its first account holder.

Answer: B

Correct answer: 1999

The euro came into existence on 1 January 1999 as an accounting currency: exchange rates were irrevocably fixed and it was used for electronic transfers and bank balances. Notes and coins did not appear until 1 January 2002.

Answer: B

The Imperial Bank of India was baptised as State Bank of India followed by the formation of 7 associate banks in 1959. Recognising the fact that banking plays a crucial role in the economic development of a country, the Government of India nationalised 14 major commercial banks in July 1969. Another six commercial banks were nationalised in April 1980 in order to bring commercial banks into the mainstream of economic development with definite social obligations and objectives.

Answer: C

Correct answer: GDP

Gross Domestic Product is the market value of all final goods and services produced within a country in a year. GNI adds what residents earn abroad and subtracts what foreigners earn at home; the distinction is between where production happens and who owns the factors doing it.

Answer: B

Correct answer: Opening Savings Accounts for general public

The RBI is a central bank, not a commercial one: it does not keep accounts for the public. Its customers are the government and the banks. Setting the bank rate, CRR and SLR, managing the currency and prescribing capital adequacy are all central-banking functions.

Answer: C

Correct answer: SIDBI

The Small Industries Development Bank of India, set up in 1990, is the principal institution for financing and promoting micro, small and medium enterprises. NABARD serves agriculture and rural development, and EXIM Bank foreign trade.