Quiznetik

Banking Awareness | Set 1

1. Banking Ombudsman Scheme is applicable to the business of .

Correct : B. All scheduled commercial banks including RRBs

2. Which of the following functions are not being performed by the Reserve Bank of India?

Correct : B. Regulation of Foreign Direct Investment inIndia

3. A bank is called as ―Scheduled Bank‖ when .

Correct : C. It is included in the second Schedule of the RBI Act

4. Which of the following organization/agencies has sought an emergency fund of Rs. 1000 crore from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers?

Correct : D. NABARD

5. What is the upper limit prescribed for RTGS transaction?

Correct : E. No upper limits is prescribed

6. Distribution of insurance products and insurance policies by banks as corporate agents is known as .

Correct : C. Bancassurance

7. Which of the following committees/ Task Forces was set up to suggest reforms in Banking Sector?

Correct : B. Narasimham Committee

8. FINO stands for .

Correct : D. Financial Inclusion Network and Operations

9. When the rate of inflation increases .

Correct : B. Purchasing power of money decreases

10. Which of the following is the main advantage ―ASBA‖ with the applicants for share allotment?

Correct : D. ASBA applicants deposit/OD account is debited, only the funds are blocked for same and he/she continues to avail interest till the shares are allotted to him/her.

11. Interest on saving bank account is now calculated by banks on .

Correct : E. Daily product basis

12. A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as .

Correct : B. Core banking

13. Which of the following is not considered a money market instrument?

Correct : E. Shares and bonds

14. Which of the following is not a part of the scheduled banking structure in India?

Correct : E. Money Lenders

15. Which of the following terms is used in the field of finance and banking?

Correct : C. Adjustment Credit

16. Goods and Services Tax (GST), would replace which of the following taxes level at present?

Correct : D. Value-added tax (VAT)

17. Normally Banks accepts Fixed Deposits for a maximum period of .

Correct : E. 10 years

18. IFRS stands for .

Correct : A. International Financial Reporting Standards

19. KYC guidelines followed by the Banks have been framed on the recommendations the .

Correct : E. Reserve Bank of India

20. Short-term assets, representing amounts due to a vendor or suppliers of goods or services that were sold on credit terms is known as .

Correct : A. Account Receivable

21. What is the rate at which commercial banks charge on their surplus funds with RBI?

Correct : B. Reverse Repo Rate

22. is the rate at which commercial bank needs to maintain in the form of cash, or gold or government approved securities (Bonds) before providing credit to its customers.

Correct : D. SLR Rate

23. Who appoints the governor of Reserve Bank of India?

Correct : C. Central Government

24. In India, the Chit funds are governed / regulated by .

Correct : D. State Government

25. CAG Stands for .

Correct : A. Controller and Auditor General of India

26. CPI stands for .

Correct : C. Consumer Price Index

27. SEBI is a .

Correct : B. Statutory body

28. At which rate the RBI lends money to a public sector bank on a long term basis?

Correct : A. Bank Rate

29. What is the full form of PPP?

Correct : D. Purchasing Power Parity

30. What is the Minimum amount of transfer required for RTGS is .

Correct : B. Rs. 2 lakh

31. Who is the sole authority to issue and manage currency in India?

Correct : C. Reserve Bank of India

32. In CRR, C stands for .

Correct : A. Cash

33. MICR code is used for .

Correct : C. For Electronic Clearance of Cheques

34. The Statutory Liquidity Ratio (SLR), the amount of liquid assets such as cash, precious metals

Correct : D. 1 month

35. Money lent for more than one day but less than 15 days in the money market is known as .

Correct : A. Notice Money

36. Smart Money‘ is a term used for .

Correct : B. Credit Card

37. The Indian Financial System Code (IFS Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India. IFSC code consists of how many alphanumeric codes?

Correct : B. 11

38. Which among the following committee constituted on Payment Banks license?

Correct : A. Dr. Nachiket Mor

39. SARFAESI Act 2002 related to .

Correct : C. Recovery of bad loans

40. NDTL stands for .

Correct : D. Net Demand and Time Liability

41. Magnetic Ink Character Recognition (MICR) is a 9 digits code is used mainly by the banking industry to ease the processing and clearance of cheques and other documents. The first three digits represent the .

Correct : B. City

42. A savings as well as current account should be treated as inoperative / inactive if there are no transactions in the account for over a period of            years.

Correct : D. 2

43. In CDR, ―R‖ stands for .

Correct : C. Restructuring

44. If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority to .

Correct : B. Deputy Governor of the RBI

45. Headquarters of National Investment and Infrastructure Fund (NIIF) is located at .

Correct : C. Mumbai

46. According to the proposal on PSL, what sub target is to be created for Micro Enterprises in India by March 2017?

Correct : B. 7.5 %

47. What is ―Stagflation‖?

Correct : C. inflation after deflations

48. Which bank has become the first private sector bank to sell Indian gold coins?

Correct : B. Federal Bank

49. Which of the following can issue commercial paper for raising short term funds?

Correct : E. All of the Above

50. Section 80E of the Income Tax Act provides for deduction of interest paid on Education or study loan taken for higher education. Deduction under section 80E is available for

Correct : C. 8 years

51. What is the full form of FCCB?

Correct : A. Foreign Currency convertible Bond

52. Which of the following institutions is responsible for the supervision of RRBs?

Correct : E. Both (a) and (c)

53. RBS Bank has been headquartered in

Correct : B. Edinburgh, United Kingdom

54. National Housing Bank (NHB), a wholly owned subsidiary of

Correct : A. RBI

55. In India Mutual Funds are regulated by                 .

Correct : A. Securities and Exchange Board of India

56. KYC Compliance is done to .

Correct : C. To ensure the genuineness the person‟s identity as mentioned in the application and to verify the correctness of address

57. MICR stands for .

Correct : A. Magnetic Ink Character Recognition

58. Open Money Market is a place for selling and buying of financial instrument by .

Correct : A. All financial institutions

59. Which of the following is the first commercial bank to launch mutual fund?

Correct : A. State Bank of India

60. Who can invest in a commercial paper?

Correct : D. All of the above

61. The committee on Banking Regulations and Supervisory Practices which released the agreed frame work on international convergence of capital measures and capital standards in July 1988 is popularly known as .

Correct : C. Basel Committee

62. Which is the first Public Sector Bank to issue capital to public?

Correct : C. Oriental Bank of Commerce

63. Which of the following rates is not decided by the RBI?

Correct : D. Prime Lending Rate

64. Which of following is NOT a function of the Reserve Bank of India?

Correct : A. Fiscal Policy Functions

65. With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced for bank accounts in our country

Correct : C. Nomination

66. Banks in our country normally publicize that additional interest rate is allowed on retail domestic term deposits of .

Correct : C. Senior citizens

67. On which one of the following issues IMF has supported monetary policy of India?

Correct : D. Tightening of monetary policy

68. In the term STRIPS, the first letter ―S‟ denotes

Correct : E. Separate

69. When the loan is granted for purchase of white goods it is called .

Correct : C. Consumer durable loan

70. Structure of Basel II is based on how many pillars?

Correct : E. Three

71. Which of the following organization / agencies has established a fund known as Investor Protection Fund?

Correct : C. Bombay Stock Exchange

72. The CRR and SLR maintenance is on the

Correct : A. NDTL

73. Which of the following is the most liquid money?

Correct : A. M1

74. Who decides the value and volume of bank notes to be printed and on what basis?

Correct : C. RBI

75. The largest number of commercial banks offices are located in? 84). What is the purpose of KYC in banking?

Correct : E. Both (a) and (c)

76. Which of the following is not a member of the World Bank Group?

Correct : C. Bank of International Settlement

77. Which of the following types of cards is free from credit risk?

Correct : B. Debit card

78. Pledge means?

Correct : C. bailment of goods as security for payment of a debt or performance of a promise

79. Inflation refers to a fall in the value of money. Which of the following is the key measure of inflation in india?

Correct : B. Wholesale price index

80. A financial contract that derives its value from another asset or an index of asset values in known as

Correct : C. Derivative

81. Which of the following co-operative banks is considered as the first Co-operative Bank in India?

Correct : B. Anyonya Co-operative Bank

82. In India Agricultural Co-operative Banks was started at .

Correct : C. 1904

83. According to the Sarraya Committee, average membership of the society‟s is .

Correct : D. 32

84. Monetary Policy as an arm of the economic policy is administered by .

Correct : D. Reserve Bank of India

85. Co-Operative Development Bank was set up by .

Correct : A. NABARD

86. Co-Operative Banks in India do not finance rural areas under .

Correct : B. Small Scale Unit

87. Co-Operative Bank in India has a .

Correct : C. Three tier system

88. RBI known as lender of last restore because:

Correct : C. It comes to help banks in times of crisis

89. The seed capital of Bharatiya Mahila Bank is

Correct : B. Rs.1000 crore

90. Which is incorrect with regard to powers of RBI:

Correct : D. None of the above

91. Which of the following is an investment advisory discipline?

Correct : D. Wealth Management

92. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as:

Correct : A. Term Deposit

93. When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called

Correct : B. Budgetary Deficit

94. Which of the following is not the name of a bank functioning in India?

Correct : C. Aegon Religare

95. Lack of access to financial services is technically known as

Correct : D. Financial Exclusion

96. Which of the following can be categories as a Merchant Banking service?

Correct : E. All the above

97. What is the maturity period for senior citizen savings scheme?

Correct : B. 5 years

98. Crossing denotes

Correct : D. a direction to the paying bank to make payment of the cheque through a bank

99. Which of the following private banks has signed an agreement with Reliance Jio Money for One-Click payment service ?

Correct : B. Federal Bank

100. Who is primarily liable on a cheque?

Correct : B. Drawer