This document appears to be a quiz on banking and finance concepts. It contains 26 multiple choice questions testing knowledge in areas like monetary aggregates, GDP calculation, interest rates, sampling, and bank lending practices. The answers to the questions are provided at the end.

1. ADVANCED BANK MANAGEMENT
1. Hindu growth rate refers to….
a. 1.5% b. 2.5% c. 3.5% d. 4.5%
2. M3 is equivalent to….
a. M1 + Time Deposits with Banking System
b.
3. M3 as mentioned in the statistics published by RBI is otherwise known as…
a. Reserve Money b. Hot Money
c. Broad Money d. Broadest Money
4. Market equilibrium comes at the price at which commodity demanded equals to quantity…
a. Produced b. Supplied
c. Of inventory d. Of demand
5. In the classioficatoion of sector, IT / ITES belongs to _____ sector …
a. Agriculture b. Industry c. Services d. Real Estate
6. In economics ‘ends’ refer to….
a. Finished b. Last c. Wants d. Resources
7. WPI for all commodity is announced by CSO at the _____ frequenscy….
a. Weekly b. Monthly c. Quarterly d. Bi-Monthly
8. CSO is classified in the industrial sector into _____ segment ….
a. One b. Two c. Five d. Three
9. Narrow money is denoted by …..
a. M 1 b. M 2 c. M 3 d. M 4
10. According to the National Income Accounting, there are ___ ways to compute GDP …
a. One b. Two c. Three d. Four
11. Who gave welfare definition of economics….
a. Adam Smith b. Robin
c. J.N.Keyens d. Alfred Marshal
12. The services sector accounts for about ____ of India’s GDP …
a. 2/3rd b. 3/4th c. 1/3rd d. 2/5th
13. Find odd one out ….
a. Secular Trend b. Seasonal Variation
c. Dependent Variable d. Cyclical Trend
14. If you invest Rs.1000/- at 10% p.a annual compounding, maturity value at the end of 3 years
would be ….
a. Rs.1000 b. Rs.1210 c. Rs.1331 d. Rs.1300
15. Which of the following statement is true …
a. Larger the sample size smaller will be the standard error
b. Larger the sample size larger will be the standard error
c. Smaller the sample size smaller will be the standard error
d. There is no relation between the sample size & the standard error
16. Suppose there are 4 balls of the different colour (black, white, red, green). You want to draw a
sample of 2 balls, the number of such samples would be …
a. 2 b. 4 c. 6 d. 8
17. 15% coupon bond of FV Rs.1000/-, 3 years remaining maturity was bought at Rs.1050/-. After
1 year you sell the bond when the rate have fallen and the bond’s YTM is 10%. Bond’s rate of
return then would be…

2. a. 18.7% b. 17.8% c. 16.5% d. 16.6%
18. In simulation, is a method of ….
a. Drawing sample from a large population
b. Studying facts of changes through models
c. Using regression analysis to estimate one variable when value of the other variable is given
d. Finding optimal solution
19. The covariance between two variables is....
a. Always Positive b. Always Negative
c. Always Zero d. Either ‘a’ or ‘b’ or ‘c’
20. Rs.5000/- is invested at 10% p.a for 2 years. What amount the investor will receive if
compounded quarterly.....
a. 6092 b. 6244
21. Rs.50000/- are invested in a bank which offers interest payment on quarterly basis. If the rate
of interest written on the face of the fixed deposit receipt is 8.50%, how much accumulative
rate of interest is likely to be received....
a. 8.50% b. 8.77%
c. 8.68% d. 8.84%
22. Mr. Ajit Narain approaches his bank for sanction of Term Loan of Rs.30/- Lac for purchase of
machinery worth Rs.60/- Lac. Remaining amount of Rs.30/- Lac would be contributed by him.
What action the bank would take ....
a. Sanction the term loan since margin contribution by the borrower is 50%
b. Check Debt Equity Ratio before the term loan is sanctioned
c. Check DSCR before the term loan is sanctioned
d. ‘b’ and ‘c’
23. A bank receives a request from a partnership firm for sanction of working capital. The firm
expects a sales turnover of Rs.40/- Crore in the ensuing year. Following the Nayak Committee
method of sanction of working capital limit, how much limit the bank would sanction to this
partnership firm ....
a. Rs.8/- Cr. b. Rs.10/- Cr. c. Rs.2/- Cr.
d. Nayak Committe method is not applicable
24. Rs.1000/- is invested at the end of every month at 9% pa compounded monthly. How much it
would amount to after 1 year, given that (1.0075)12 = 1.0938 ...... Rs.12510/-
25. Bills Purchased/Discounted/Negotiated under LC are treated as an exposure on .....
a. The Applicant of LC b. LC Opening Bank
c. LC Negotiating Bank d. The Exporter of Goods
26. How much is the discount factor for 12% rate of interest for 5 years .... 0.5674
ANSWERS
1 c 2 a 3 c 4 b 5 c 6 d 7 b 8 d 9 a 10 c
11 d 12 a 13 c 14 c 15 a 16 c 17 b 18 b 19 d 20 a
21 b 22 d 23 d 24 -- 25 b 26 --
1. Banks capital exposure limit to NBFC .. 15%