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TOTAL QUESTION: 20
TOTAL TIME= 20 MIN
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Your results are here!! for" Certificate of Deposit (CD) "
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Question 1 of 20
1. Question
What is a Certificate of Deposit (CD)?
Correct
A CD is a negotiable money market instrument issued in dematerialised form or as a Usance Promissory Note against funds deposited for a specified period.
Incorrect
A CD is a negotiable money market instrument issued in dematerialised form or as a Usance Promissory Note against funds deposited for a specified period.
Unattempted
A CD is a negotiable money market instrument issued in dematerialised form or as a Usance Promissory Note against funds deposited for a specified period.
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Question 2 of 20
2. Question
Which banks are eligible to issue CDs according to the passage?
Correct
Scheduled commercial banks, excluding Regional Rural Banks and Local Area Banks, can issue CDs.
Incorrect
Scheduled commercial banks, excluding Regional Rural Banks and Local Area Banks, can issue CDs.
Unattempted
Scheduled commercial banks, excluding Regional Rural Banks and Local Area Banks, can issue CDs.
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Question 3 of 20
3. Question
Which financial institutions may issue CDs subject to RBI permission?
Correct
Select All-India Financial Institutions permitted by RBI to raise short-term resources within the prescribed umbrella limit may issue CDs.
Incorrect
Select All-India Financial Institutions permitted by RBI to raise short-term resources within the prescribed umbrella limit may issue CDs.
Unattempted
Select All-India Financial Institutions permitted by RBI to raise short-term resources within the prescribed umbrella limit may issue CDs.
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Question 4 of 20
4. Question
What is the minimum amount of a Certificate of Deposit?
Correct
The minimum amount of a CD should be Rs. 1 lakh, with subsequent amounts in multiples of Rs. 1 lakh.
Incorrect
The minimum amount of a CD should be Rs. 1 lakh, with subsequent amounts in multiples of Rs. 1 lakh.
Unattempted
The minimum amount of a CD should be Rs. 1 lakh, with subsequent amounts in multiples of Rs. 1 lakh.
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Question 5 of 20
5. Question
Which of the following can subscribe to CDs according to the passage?
Correct
CDs can be issued to individuals, corporations, companies, trusts, funds, associations and other listed investors.
Incorrect
CDs can be issued to individuals, corporations, companies, trusts, funds, associations and other listed investors.
Unattempted
CDs can be issued to individuals, corporations, companies, trusts, funds, associations and other listed investors.
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Question 6 of 20
6. Question
On what basis may Non-Resident Indians subscribe to CDs?
Correct
NRIs may subscribe to CDs only on a non-repatriable basis, which must be clearly stated on the Certificate.
Incorrect
NRIs may subscribe to CDs only on a non-repatriable basis, which must be clearly stated on the Certificate.
Unattempted
NRIs may subscribe to CDs only on a non-repatriable basis, which must be clearly stated on the Certificate.
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Question 7 of 20
7. Question
What is the maturity period for CDs issued by banks?
Correct
Bank-issued CDs have a maturity of not less than 7 days and not more than one year from the date of issue.
Incorrect
Bank-issued CDs have a maturity of not less than 7 days and not more than one year from the date of issue.
Unattempted
Bank-issued CDs have a maturity of not less than 7 days and not more than one year from the date of issue.
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Question 8 of 20
8. Question
What is the maturity period for CDs issued by eligible financial institutions?
Correct
Eligible FIs can issue CDs for at least 1 year and up to 3 years.
Incorrect
Eligible FIs can issue CDs for at least 1 year and up to 3 years.
Unattempted
Eligible FIs can issue CDs for at least 1 year and up to 3 years.
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Question 9 of 20
9. Question
How may a Certificate of Deposit be issued?
Correct
CDs may be issued at a discount on face value.
Incorrect
CDs may be issued at a discount on face value.
Unattempted
CDs may be issued at a discount on face value.
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Question 10 of 20
10. Question
What must the methodology for a floating-rate CD be?
Correct
The floating-rate methodology must be objective, transparent, market-based, and based on a predetermined formula.
Incorrect
The floating-rate methodology must be objective, transparent, market-based, and based on a predetermined formula.
Unattempted
The floating-rate methodology must be objective, transparent, market-based, and based on a predetermined formula.
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Question 11 of 20
11. Question
Which reserve requirements must banks maintain on the issue price of CDs?
Correct
Banks must maintain appropriate reserve requirements such as CRR and SLR on the issue price of CDs.
Incorrect
Banks must maintain appropriate reserve requirements such as CRR and SLR on the issue price of CDs.
Unattempted
Banks must maintain appropriate reserve requirements such as CRR and SLR on the issue price of CDs.
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Question 12 of 20
12. Question
How are physical CDs transferred?
Correct
Physical CDs are freely transferable by endorsement and delivery.
Incorrect
Physical CDs are freely transferable by endorsement and delivery.
Unattempted
Physical CDs are freely transferable by endorsement and delivery.
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Question 13 of 20
13. Question
What is the lock-in period for Certificates of Deposit?
Correct
The passage states that there is no lock-in period for CDs.
Incorrect
The passage states that there is no lock-in period for CDs.
Unattempted
The passage states that there is no lock-in period for CDs.
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Question 14 of 20
14. Question
Within how long must OTC trades in CDs be reported?
Correct
All OTC trades in CDs must be reported within 15 minutes on the CDSIL reporting platform.
Incorrect
All OTC trades in CDs must be reported within 15 minutes on the CDSIL reporting platform.
Unattempted
All OTC trades in CDs must be reported within 15 minutes on the CDSIL reporting platform.
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Question 15 of 20
15. Question
Which settlement mechanism is prescribed for OTC trades in CDs?
Correct
OTC trades in CDs are cleared and settled under the Delivery versus Payment (DVP) I mechanism.
Incorrect
OTC trades in CDs are cleared and settled under the Delivery versus Payment (DVP) I mechanism.
Unattempted
OTC trades in CDs are cleared and settled under the Delivery versus Payment (DVP) I mechanism.
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Question 16 of 20
16. Question
Can banks or FIs grant loans against Certificates of Deposit?
Correct
Banks and FIs cannot grant loans against CDs under the stated rules.
Incorrect
Banks and FIs cannot grant loans against CDs under the stated rules.
Unattempted
Banks and FIs cannot grant loans against CDs under the stated rules.
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Question 17 of 20
17. Question
Can banks/FIs buy back their own CDs before maturity?
Correct
The passage states that banks/FIs cannot buy back their own CDs before maturity, subject to possible RBI relaxation.
Incorrect
The passage states that banks/FIs cannot buy back their own CDs before maturity, subject to possible RBI relaxation.
Unattempted
The passage states that banks/FIs cannot buy back their own CDs before maturity, subject to possible RBI relaxation.
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Question 18 of 20
18. Question
In what form should banks/FIs issue CDs according to the passage?
Correct
Banks/FIs should issue CDs only in dematerialised form, while investors may have an option to seek physical certificates under the stated provision.
Incorrect
Banks/FIs should issue CDs only in dematerialised form, while investors may have an option to seek physical certificates under the stated provision.
Unattempted
Banks/FIs should issue CDs only in dematerialised form, while investors may have an option to seek physical certificates under the stated provision.
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Question 19 of 20
19. Question
What should the issuing bank/FI do if the maturity date of a CD falls on a holiday?
Correct
Payment should be made on the immediate preceding working day.
Incorrect
Payment should be made on the immediate preceding working day.
Unattempted
Payment should be made on the immediate preceding working day.
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Question 20 of 20
20. Question
Which condition is required for issuing a duplicate physical CD after loss of the original?
Correct
The passage requires publication of a notice in at least one local newspaper, a reasonable waiting period, and an indemnity bond.
Incorrect
The passage requires publication of a notice in at least one local newspaper, a reasonable waiting period, and an indemnity bond.
Unattempted
The passage requires publication of a notice in at least one local newspaper, a reasonable waiting period, and an indemnity bond.