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Treasury Bill



1.What is Gilts:

A.Securities issued by government or Treasuries
B.They do not have any credit Risk
C.A and B both
D.None of the above

2.For which of the following purpose can banks grant Working Capital Term Loan:

A.Meeting margin for term loan
B.Meeting margin for working capital loan
C.Meeting contingent expenses
D.Meeting credit needs for peak season in an industry

3.Know Your Customers (KYC) guidelines are as per the provisions of:

A.Section 35 of Negotiable Instruments Act, 1881
B.Section 35A of Banking Regulation Act, 1949
C.Section 35A of RBI Act, 1934
D.IBA guidelines

4.Maximum period for which a commercial paper can be issued is:

A.3 months
B.6 months
C.1 year
D.2 years

5.One of the following is not correct in regard to Capital Market:

A.It is a market for long term financial assets
B.Maturity Period less than one year
C.Dealings take place at Stock Exchange
D.Unlimited number of players
E.Regulated by SEBI

6.The approaches suggested by Basel Committee for purpose of computing Credit Risk under Basel-II are:

A.Advance Standard Approach, Internal Rating-Based Foundation Approach and Internal Risk-Based Advance Approach
B. Standard Approach, Internal Rating-Based Foundation Approach, and Internal Rating-Based Advance Approach
C.Basic Indicator Approach, Internal Rating-Based Foundation Approach, and Internal Risk-Based Advance Approach
D.Standard Approach, Internal Rating-Based Foundation Approach and Internal Risk-Based Advance Approach

7.The duration of Ways & Means Advances (WMAs) is:

A.10 working days for Central Government 14 days for State Government
B.10 consecutive working days for Central Government and 14 days for State Government
C.14 working days for Central Government and 18 days for State Government
D.14 consecutive working days for Central Government and 18 days for State Government

8.What are the characteristics of Treasury Bills:

A.These are borrowings by the Central/State Government
B.These are in the form of Promissory Notes
C.These are issued at a discount and for a fixed period of time
D.All of the above

9.Credit Guarantee Fund Trust for Small Industries has been set up on the recommendations of:

A.Narasimham Committee
B.Ghosh Committee
C.Chore Committee
D.Kapoor Committee

10.What is the full form of SLR in banking term:

A.Statutory liquidity rate
B.Statutory liquidity ratio
C.Statutory liquid rate
D.Stagnant liquidity ratio


11.Which of the following terms is used in the field of Banking/Finance?

1) Amendment
2) Active Assest
3) joint Assest
4) Reflecx Action
5) None of these

12.What does the letter 'R' denote in term 'RTGS' as used in the field of banking?

1) Rotation
2) Reasonable
3) Real
4) Rate
5) None of these

13.What does the term 'AAY' denote which is the short form of a social scheme launched by the Govt. of India?

1) antodaya Anna Yojana
2) Area Antodaya Yojana
3) Asian Awas Yojana
4) Anna Antodaya Yojana
5) None of these

14.What does the letter 'M' denote in the name 'MFI' as used in financial sector?

1) Mega
2) Micro
3) Mutiple
4) Monetary
5) None of these

15. The rate of Interest is determined by-

1) Liquidity preference
2) Central Government
3) Commercial Banks
4) The rate of return on the capital Invested
5) None of these

16.Who is authorised to Issue coins in India?

1) State Bank of India
2) RBI
3) Ministry of Finance
4) IDBI
5) None of these

17. The funds raised by the Government within the country is known as-

1) Domestic saving source
2) domestic banking source
3) Domestic budgetary source
4) Domestic budgetary source
5) None of these

18.Which revenue earned by union Government is not distributed among state government.

1) Custom duty
2) Income Tax
3) Excise Duty
4) sale tax
5) None of these

19. The break-even point is where-

1) Average revenue equals average cost
2) Marginal revenue equals mariginals cost
3) Total Revenue equals total cost
4) Mariginal revenue equals total cost
5) None of these

20. A short-term government security paper is called?

1) Treasury Bill
2) Share
3) Debenture
4) Mutual Fund
5) None of these