1. Hawala transactions in India are prohibited under the provision of which of the following Acts? (2)
(a) FRBM Act (b) FEMA
(c) RBI Act (d) FATF Act
(e) Banking Regulation Act
2. Advantages of Mutual Funds are: (5)
(a) The transaction cost is very low
(b) Provides more security as compared to shares
(c) The small amounts gathered will be invested in diversified sectors
(d) Professional Management is provided through AMC
(e) All of the above
3. Issuing credit cards fells under…… (3)
(a) Corporate banking (b) Rural banking
(c) Retail banking (d) Micro finance
(e) None of these
4. Banks are considered as ‘financial intermediaries’, which of the following activity correctly and comprehensively explains the role of banks? (1)
(a) Accepting deposits of money for the purpose of lending and investment
(b) Granting loans to the weaker sections of the society
(c) Accepting money for remittance and issuing bank drafts
(d) Providing safe deposit services
(e) Opening accounts and accepting deposits therein
5. Banks will come across different types of risks in their day to day activities. Which of the following is one such major risk? (3)
(a) Customer risk (b) Reputation
(c) Goodwill risk (d) Protection risk
(e) operational risk