CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
JAN2016
ASSESSMENT_CODE MA0036_JAN2016
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
37342
QUESTION_TEXT
Explain the functions of RBI.
SCHEME OF EVALUATION
The functions of RBI are
(each point – 1mark)
i. Monetary authority
ii. Issuer of currency
iii. Guarantor of price stability
iv. Regulatory and supervisor of financial system
v. Manager of exchange control
vi. Banker to the government
vii. Banker to banker
viii. Controllers of credit
ix. Controller of foreign reserve
x. Developmental role
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
37343
QUESTION_TEXT
Write short notes on:
a. Electronic Funds Transfer (EFT)
b. Electronic Clearing System (ECS)
SCHEME OF
EVALUATION
a) Electronic fund transfer is a system where by any one who wants to make
payments to another person /company etc. can approach his bank and make
cash payment or give instructions to transfer funds directly from his own
account to the bank account of the receiver/beneficiary
b) Electronic clearing system is a retail payment system that can be used to
make bulk payments/receipts of a similar nature especially where each
individual payment is of repetitive nature and of relatively smaller amount.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
74034
QUESTION_TEXT
What are the main risks associated with business undertaken by
banks? Which risk is associated with Basel I?
SCHEME OF
EVALUATION
Risks associated with banks can be grouped into three categories
Market risk
Credit risk
Operation risk
Market risk
1.possibility of loss due to changes in market variables such as interest
rate, equity price or commodity price
2. further classified as liquidity risk, interest rate risk, forex risk ,
equity or commodity price risk
Credit risk
Inability or unwillingness of customer or counterparty to meet
commitments in relation to lending , trading , hedging etc
Mitigating credit risk through proper loan policy, investment policy ,
procedures, controls , supervision and data management is required
Capital adequacy is also must to mitigate credit risk
Operational risk
Risk of loss arising from failed or inadequate internal processes,
systems , people or from external events
Operation risk policy, data base management, capital adequacy is must
to mitigate this risk
Necessary training to functionaries is also must to address such risks
Basel I accord concentrated on Credit risk only
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125337
QUESTION_TEXT
What are the five types of co-operative banks in India? Explain NSDL.
Co-operative banks:
SCHEME OF
EVALUATION
●
Primary urban co-op banks
●
Primary agricultural credit societies
●
District central co-op banks
●
State co-operative banks
●
Land development banks
National Securities Depository Limited (NSDL):
The depositories hold securities in ‘demat’ and all securities in depository are
freely interchangeable. The investors in securities appear as owner in the
records of the depository. All rights relating to securities, however, accrue to
beneficial owners. In the case of purchasing of securities, holding of securities
in the demat form helps investors to get immediate transfer of securities. The
investor need not pay any stamp duty for transfer of securities.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125338
QUESTION_TEXT
Describe the need of Financial Services.
The need for financial services can be seen through financial institutions’
activities that support different sectors of the economy.
SCHEME OF
EVALUATION
●
Increase investments
●
Prop up savings
●
Minimise risks
●
Maximum returns
●
Economical growth
●
Balanced regional development
●
Advantage to government
●
Promotion of business trade in domestic/foreign
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
125342
QUESTION_TEXT
Explain any five types of retail segment
1.
Home loans
2.
Educational loan
3.
Vehicle loan
4.
Personal loan
5.
Loans to pensioners
6.
Overdraft facility
7.
Business loans
SCHEME OF EVALUATION
(2 marks each)