SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 1. Why is it recommended to keep money in banks rather than at home?
Because banks offer higher interest rates
Because banks provide loans against deposits
Because banks have mandatory inspection and audits
Because banks offer better customer service
Q 2. What is one drawback of keeping cash at home?
Risk of losing interest income
Risk of theft or loss due to natural disasters
Ineligibility for taking loans
Limited customer service
Q 3. How does depositing money in banks affect credit eligibility?
It decreases credit eligibility
It increases credit eligibility
It has no effect on credit eligibility
It increases the risk of default
Q 4. What percentage of the deposit amount can be availed as a loan from banks against fixed deposits?
25% to 50%
50% to 75%
75% to 90%
10% to 25%
Q 5. What insurance scheme ensures that all deposits in banks are insured by the Government?
Bank Security Scheme
Deposit Protection Scheme
Government Deposit Insurance Scheme
Central Government deposit insurance scheme
Q 6. How often are banks audited by the Reserve Bank of India?
Monthly
Quarterly
Annually
Every five years
Q 7. What is the primary purpose of depositing money in banks?
To earn high returns
To have quick access to funds
To avoid taxes
To speculate in financial markets
Q 8. What role does the Reserve Bank of India play in regulating commercial banks?
Setting interest rates
Conducting mandatory inspections and audits
Providing deposit insurance
Managing government expenditure
Q 9. What is the main advantage of bank deposits over other investments?
Higher returns
Lower risk
Tax benefits
Speculative opportunities
Q 10. How does the Central Government deposit insurance scheme benefit depositors?
By providing tax exemptions on interest earned
By offering high-interest rates on deposits
By insuring deposits up to a certain limit
By providing subsidies on loans
Q 11. What determines the eligibility for taking loans from banks?
Number of years with the bank
Employment status
Deposit amount
Age of the depositor
Q 12. What is the significance of mandatory inspection and audits for commercial banks?
To maximize profits
To ensure compliance with regulations
To reduce interest rates
To minimize liquidity
Q 13. How does the Reserve Bank of India contribute to maintaining trust in commercial banks?
By providing high-interest rates on deposits
By offering tax benefits to depositors
By conducting regular inspections and audits
By investing in financial markets
Q 14. What does the Central Government deposit insurance scheme provide assurance for?
Safekeeping of jewelry
Safety of property investments
Security of bank deposits
Insurance for health expenses
Q 15. What aspect of bank deposits makes them preferable for their liquidity and safety?
High-interest rates
Guaranteed returns
Government insurance
Speculative opportunities