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)