

The NAV of an investment scheme is a number which
represents the value in rupees per fund unit as on a
particular date of the assets of the fund less liability
and outstanding expenses. Thus, if the NAV in more
than the face value, it means your money has
appreciated and vice-versa.
NAV is only the value that a fund’s assets would
realise, less liabilities, in case the fund was liquidated
as on the particular date to which NAV relates. But
there is no uniformity in accounting policies of the
various funds and hence one cannot compare one
fund with another.
A credit card holder buys now and pays later. In
effect, the credit card issuer hands him a loan. Not so
with a debit card. The debit card holder must have
an account with the issuing bank. When he buys
something, the value of his purchase is instantly
debited from his account. The merchant
establishment from which the debit card holder
makes his purchase is linked electronically to the
bank’s main computer which contains the account
details of the card holder. The account can be
accessed with a personal identification number (PIN)
known only to the account holder. But through it, the
merchant can check the card holder’s account and
debit the value of his purchase.
The mortgagor, under this mortgage,
hands over possession of the property to
the mortgage to be retained by the
latter till the debt is repaid. The
mortgagee is authorised to receive
income / gains from the mortgaged
property in full or in part and appropriate
it towards the principal and interest on
the debt due.
ATMs are part of Virtual Banking.
 Educational Loan Scheme evolved by
Reserve Bank of India if only for students
in Private Professional Colleges.
 Over The Counter Exchange of India
(OTCEI) is non-corporate body.
 The Securities Trading Corporation of
India (STCI) was promoted by SEBI jointly
with the Public Sector Banks.






(i) Prohibits a banking company from
creating a charge upon any unpaid capital
of the company.
(ii) Contains a system of licensing of banks
by the R.B.I.
(iii) Provides that the subscribed capital of a
banking company should not be less
than one-half of its authorised capital.
(iv) Non of these
(i) Section 10 of the Banking Regulation
Act, 1949.
(ii) Section 3 of the R.B.I. Act, 1934.
(iii) Section 31 of the Negotiable
Instruments Act, 1881.
(iv) None of these
(i) 1961
(ii) 1997
(iii) 1994
(iv) 1991
(i) Rs. 50 lakh
 (ii) Rs. 100 lakh
 (iii) Rs. 10 crores
 (iv) Rs. 5 crores

(i) between 100-200
 (ii) between 200-300
 (iii) between 300-400
 (iv) more than 400

(i) 1961
(ii) 1997
 (iii) 1994
 (iv) 1991

(i) sale in the market of first class
securities in its possession to reduce the
supply of money as a measure of open
market operations
 (ii) buying of approved securities in the
market as a measure of pen market
operations
 (iii) hike in the bank rate as a measure of
open market operations
 (iv) none of these
(i) 10 per cent of profit before dividends;
 (ii) 20 per cent of profit after interest tax
and dividend;
(iii) 20 per cent of profit before dividends;
 (iv) 5 per cent of gross profit
 (v) none of the above

(i) the banker is no more liable to
observe secrecy of his account because
the contractual relationship comes to an
end
(ii) the banker is still bound by his duty of
secrecy
 (iii) the banker’s duty of secrecy comes
to an end in terms of the provisions of the
Negotiable Instrument Act, 1881
 (iv) none of these




(i) The Branch Manager will be held personally
liable upto the amount of the attachment
order
(ii) The Branch Manager will be liable to be
prosecuted entailing a fine up to Rs. 5,000 or
imprisonment which may extend up to one
year or both
(iii) The bank shall be deemed to be an
assessee in default and amount can be
recoveredfrom it as arrears of income tax due
from the Bank
(iv) None of these
(i) death of the agent
 (ii) lunacy of the agent
(iii) insolvency of the agent
 (iv) none of these

(a) A bank can claim protection on payment of a
cheque with forged signatures if it has been stolen.
ANS- (False)
 (b) The definition of Bankers does not include Indian
money – lenders or Mahajans or Sahukars or Shettys.
ANS- (True)
 (c) A Bank can also exercise the right of set off in
respect of the future or contingent debts.
ANS - (False)
 (d) Loans cannot be sanctioned under Professional
and Self Employed Scheme exceeding Rs. 10 lakh
ANS- (True)

(i) 3 years from the date of document
 (ii) 3 years from the date of advance
(iii) 3 years from the date of invocation
 (iv) None of the above as there is no limit
of time

(i) the date of loan
 (ii) date of delivery o the relative goods
 (iii) due date of loan
(iv) lien has no limitation period ANS

(i) Limit sanctioned
 (ii) Value of security
 (iii) Value of security minus unpaid stock
(iv) Value of stock minus unpaid stock
minus margin

Drawing power= (Paid Stock- Margin)+
(Book Debts- Margin)
 Paid Stock= Stock as on date- Sundry
Creditors

As on 31st July, 2012 abc, a trader is having:
 Stock : 40 Lac
 Debtors: 28 Lac
 Sundry Creditors: 18 Lac
 Margin on Stock and debtors is 25% and
50% respectively
 Cash Credit Limit : 40 Lacs
Against Stock
Stock as on 31.7.2012
Less: Sundry Creditors
Paid Stock
Less : Margin @25%
Drawing power (A)
Against Book Debts
Book Debts as on 31.07.2012
Less: margin Money
Drawing power (B)
Total Drawing Power (A+B)

40.00 Lac
18.00 Lac
22.00 Lac
5.50 Lac
16.50 Lac
28.00 Lac
14.00 Lac
14.00 Lac
30.50 Lac
(i) all the members of the family i.e.
male, female, minors and major;
 (ii) only major male members of the
family;
(iii) all persons lineally descended from a
common ancestor and included their
wives
 (iv) none of these

(i) Banking Regulation Act, 1949
(ii) Banking Companies (Acquisition &
Transfer of Undertakings) Acts 1970/1980
 (iii) both in (i) and (ii)
 (iv) none of the above

(i) Govt. of India and RBI jointly
 (ii) RBI and select Commercial Banks
jointly
(iii) Fully owned by Govt. of India
 (iv) partly by financial institutions

(i) NABARD and Commercial Banks
jointly
 (ii) State Govts. And Govt. of India
(iii) Only those commercial banks who
fail to achieve the stipulated benchmark
of agricultural advances and / or priority
sector advances
 (iv) Infrastructure Development Finance
Company Ans

(a) The Reserve Bank of India was nationalised in the
year ___________.
Ans- 1949
 (b) Bhandari Committee’s recommendations relate
to _______________.
Ans- Regional Rural Banks
 (c) Initial guidelines in regard to Local Area Banks
were issued in _____.
Ans- August 1996
 (d) Loan for fish rearing is __________ advance.
Ans- Agricultural
 (e) The right of set off is ____________ discretion.
Ans- Bank's

Money Market
 Capital Market

› Primary and Secondary Industrial Securieties
Market
› Corporate Bond Market
› Government Securities Market

Introduction of New Products – CBLO
(Collateralized lending and Borrowing
Obligations):
› Widening of money market
› deepening of money market
› Imparting greater liquidity
› Facilitating efficient price discovery
Repo
 CBLO
 Commercial paper
 Certificate of deposit
 Regular auction of treasury bills
 Upgradation of payment system
technologies to improve assets liability
management
 Liquidity Adjustment Facility (LAF)
