This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk and insurance exams. This set contains questions from the topic: Certificates of Deposit(CD)
- Which of the following cannot issue Certificate of Deposit (CD)?
(i) Regional Rural Banks
(ii) Local Area Banks
(iii) All-India Financial Institutions (FIs)
A) Only (i)
B) Only (ii)
C) Only (iii)
D) Both (i) and (ii)
- What is the minimum deposit under Certificate of Deposit (CD)?
A) Rs 25,000
B) Rs 50,000
C) Rs 1,00,000
D) Rs 2,00,000
- What is the minimum maturity period of a CD issued by a bank?
A) 7 days
B) 14 days
C) 30 days
D) 1 year
- What is the maximum maturity period of a CD issued by a bank?
A) 1 year
B) 2 year
C) 3 year
D) 4 year
- What is the minimum maturity period of a CD issued by a Financial Institution?
A) 7 days
B) 14 days
C) 30 days
D) 1 year
- What is the maximum maturity period of a CD issued by a Financial Institution?
A) 1 year
B) 2 year
C) 3 year
D) 4 year
- Identify the true statement.
A) Banks / FIs cannot grant loans against CDs.
B) CDs may be issued at a discount on face value.
C) Banks / FIs are also allowed to issue CDs on floating rate basis.
D) All are correct
- What is the maximum amount for which CDs can be issued?
A) Rs 10,00,000
B) Rs 15,00,000
C) Rs 20,00,000
D) No such limit
- Find the false statement.
A) Non-Resident Indians (NRIs) may also subscribe to CDs
B) A CD issued to NRI can be endorsed to another NRI in the secondary market.
C) The FIs can issue CDs for a period not less than 1 year
D) There is no lock-in period for the CDs.
- Which statement(s) is/are false
(i) CDs are transferable.
(ii) CDs issued to NRIs is repatriable
(iii) Banks have to maintain CRR and SLR on the issue price of the CDs.
A) Both (i) and (ii)
B) Both (i) and (iii)
C) Only (ii)
D) Only (ii) and (iii)
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Thankuzz 🙂
@Suraj sir doubt in question number 3 and 5th aren’t both financial institution and banks are same
Explain the difference , ? How answer differ
See in ques 1 it is given who can issue COD
CDs can be issued by
(i) scheduled commercial banks {excluding Regional Rural Banks and Local Area Banks}; and
(ii) select All-India Financial Institutions (FIs) that have been permitted by RBI- (other than banks)
Fis can be like NBFC, insurance company etc
Now when a bank issues a COD and when a FI issues a COD there is difference of time period for both
Bank it is 7 days to 1 year
FI it is 1 year to 3 year
okay sir , got you
thankyou
5…
thnxx
thanks
ty..
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