Multiple Choice
Questions on Import Finance for Bank Promotion Exams

 

1. Buyers credit and
suppliers’ credit are the types of Trade credit facilities associated with?

 

Option a. Exports.

Option b. Hedging.

Option c. Imports.

Option d. All the above.

 

The correct answer is Option
c. Imports.

 

2. The maximum cap on
Outstanding Contracts under simplified hedging facility is?

 

Option a. USD 30
million, or its equivalent, on a gross basis.

Option b. USD 100
million, or its equivalent, on a gross basis.

Option c. USD 50
million, or its equivalent, on a gross basis.

Option d. USD 25
million, or its equivalent, on a gross basis.

 

The correct answer is Option
a. USD 30 million, or its equivalent, on a gross basis.

 

3. RBI has made it
mandatory for all non-individual customers who undertake single NEFT or RTGS transactions
of and above to submit Legal Entity Identifier (LEI) to the banks.

 

Option a. Rs. 5 crores.

Option b. Rs. 10 crores.

Option c. Rs. 50 crores.

Option d. Rs. 100
crores.

 

The correct answer is Option
c. Rs. 50 crores.

 

4. The number of Digits
in Legal Entity Identifier (LEI) code is?

 

Option a. 15.

Option b. 20.

Option c. 14.

Option d. 18.

 

The correct answer is Option
b. 20.

 

 

5. Which of the
following statement is not appropriate?

 

Option a. Joint NRE/
FCNR (B) Account/NRO account is permissible with two or more NRIs/PIOs.

Option b. NRIs/ PIOs
can hold NRE/FCNR(B)/ NRO account jointly with a resident relative on ‘former
or survivor’ basis.

Option c. FCNR(B)
account can be opened in the form of Savings, Current, Recurring, Fixed
Deposit.

Option d. NRE accounts
can be opened in the form of Savings, Current, Recurring, Fixed Deposit. The
Min tenure of fixed deposits is 1 year and maximum (more than 3 years) can be
decided by the banks as per their ALM pattern.

 

The correct answer is Option
c. FCNR(B) account can be opened in the form of Savings, Current, Recurring,
Fixed Deposit.

 

6. The Minimum and
maximum period for opening FCNR (B) deposits by the banks is?

 

Option a. 7 days &
3 years.

Option b. 1 Year &
5 years.

Option c. 1 year &
3 years.

Option d. Banks can
decide.

 

The correct answer is Option
b. 1 Year & 5 years.

7. With respect to NRO
accounts, which of the following statement is not appropriate?

 

Option a. NRO accounts
can be opened in the form of SB/Current/RD/FD accounts.

Option b. Inward
remittances from outside India, legitimate dues in India and transfers from
other NRO accounts are permissible credits to NRO account.

Option c. Balance in
NRO account is not repatriable except for current income; and remittances by
NRIs/ PIOs up to USD 1 million per financial year in accordance with the
provisions of FEMOPTION A.

Option d. The interest
earned on NRO accounts is not taxable.

 

The correct answer is Option
d. The interest earned on NRO accounts is not taxable.

 

 

8. An NRI who is
returning India permanently can open Account with AD bank to receive his
superannuation benefits from overseas employer.

 

Option a. EEFC account.

Option b. RFC account.

Option c. Domestic SB
account.

Option d. Current
Account.

 

The correct answer is Option
b. RFC account.

 

 

Previous Years Recalled Questions for Bank Promotion Exams (Set 5)

9. Any person resident
outside India, having a business interest in India, can open account with an
authorised dealer for the purpose of depositing bona fide transactions/earnings
in rupees in India.

 

Option a. RFC account.

Option b. NRE account.

Option c. NRO account.

Option d. SNRR account.

 

The correct answer is Option
d. SNRR account.

 

 

10. Which of the
following statement with respect to SNRR account is not true?

 

Option a. SNRR account
is Non-interest-bearing account.

Option b. Debits and
credits specific/ incidental to the business proposed to be done by the account
holder are permitted in SNRR account.

Option c. The maximum
tenure for opening SNRR account is 7 years.

Option d. The funds in
SNRR account is not repatriable.

e. Only (c) & (d).

 

The correct answer is Option
d. The funds in SNRR account is not repatriable.

 

11. TDS on Interest
earned on NRO accounts is 30% plus applicable cess. The TDS is applicable if
the amount of interest paid exceeds?

 

Option a. Rs. 30,000.

Option b. Rs. 40,000.

Option c. Rs. 50,000.

Option d. Rs. 10,000.

 

The correct answer is Option
d. Rs. 10,000.

 

12. The integrated
ombudsman scheme -2021 of RBI covers?

 

Option a. All Commercial
Banks, RRBs, Scheduled Primary (Urban) Co-operative Banks and Non-Scheduled
Primary (Urban) Co-operative Banks with deposits size of Rupees 50 crore and
above.

Option b. all NBFCs
(excluding Housing Finance Companies) which are authorised to accept deposits
or have customer interface, with an assets size of Rupees 100 crore and above.

Option c. all System
Participants defined under PSS act 2007.

Option d. All the above.

 

The correct answer is Option
d. All the above.

 

13. Appellate Authority
under RBI’s integrated Ombudsman scheme 2021 is?

 

Option a. Deputy
Governor in-Charge of the department of Reserve Bank which is administering the
Scheme.

Option b. Executive
Director in-Charge of the Department of the Reserve Bank administering the
Scheme.

Option c. Chief General
Manager in-Charge of the Department of the Reserve Bank administering the
Scheme.

Option d. RBI board
director nominated for this purpose.

 

The correct answer is Option
b. Executive Director in-Charge of the Department of the Reserve Bank
administering the Scheme.

 

14. What is the maximum
amount in a dispute that can be brought before the Ombudsman for which the
Ombudsman can pass an Award?

 

Option a. Rs. 20 lakhs.

Option b. Rs. 25 lakhs.

Option c. Rs. 30 lakhs.

Option d. No such limit.

 

The correct answer is Option
d. No such limit.

 

15. Under Retail Direct
Scheme, a retail investor can invest in Government securities by opening “Retail
Direct Gilt Account” (RDG Account) with
RBI. The investor can invest in both primary and secondary markets. The
Government securities covered under the scheme include?

 

Option a. Government of
India Treasury Bills.

Option b. Government of
India dated securities.

Option c. Sovereign
Gold Bonds (SGB).

Option d. State
Development Loans (SDLs).

e. All the above.

 

The correct answer is e.
All the above.

 

Part 4: TYPES OF CHARGES, SECURITIES & DOCUMENTATION with Multiple Choice Questions (MCQs) and answers

16. With respect to
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which of the following is the
eligible age group to get a cover upto Rs. 2 lakhs specified under the scheme?

 

Option a. 18 to 50
years.

Option b. 18 to 55
years.

Option c. 18 to 60
years.

Option d. 18 to 65
years.

The correct answer is Option
a. 18 to 50 years.

 

17. With respect to
Pradhan Mantri Suraksha Bima Yojana (PMSBY), what is the maximum coverage
available as per the scheme to the policy holders?

 

Option a. Rs. 2 lakh
for accidental death and full disability and Rs. 0.5 lakh for partial
disability.

Option
b. Rs. 2 lakh for accidental death and full disability and Rs. 1 lakh for
partial disability.

Option c. Rs. 5 lakh
for accidental death and full disability and Rs. 2 lakh for partial disability.

Option d. Rs. 1 lakh
for accidental death and full disability and Rs. 0.75 lakh for partial
disability.

The correct answer is Option
b. Rs. 2 lakh for accidental death and full disability and Rs. 1 lakh for
partial disability.

 

18. APY scheme in India
is being administered by?

 

Option a. LIC of India.

Option b. Pension Fund
Regulatory and Development Authority (PFRDA).

Option c. IRDAI.

Option d. New India
Insurance Company.

 

The correct answer is Option
b. Pension Fund Regulatory and Development Authority (PFRDA).

 

 

19. Which of the
following statement with respect to e-Rupi is not true?

 

Option a. e-RUPI is a
one-time use digital solution to facilitate cashless payment which is person
& purpose specific solutions for various services like COVID Vaccine,
donations, corporate gift vouchers, etc.

Option b. e-RUPI can be
issued only by banks authorized by RBI to issue PPIs and members of UPI.

Option c. Maximum limit
of each e-RUPI shall not exceed INR 1 lakh or as defined by regulator.

Option d. Upto 10
e-RUPI vouchers can be issued for one programme on single mobile number / per
unique beneficiary.

Option e. e-RUPI shall also be
permitted for cash out or cash back on redemption.

 

The correct answer is e.
e-RUPI shall also be permitted for cash out or cash back on redemption.

 

 

20. ONE DISTRICT ONE
PRODUCT”
scheme of Government of India is being implemented by?

 

Option a. Ministry of
Agriculture and Rural Development.

Option b. Ministry of
MSME.

Option c. Ministry of
Food Processing Industries.

Option d. Ministry of
Exports.

Option e. Department of
Commerce.

 

The correct answer is Option e.
Department of Commerce.