Banking Awareness Quiz

(From Previous Question Papers)

What is the amount of compensation to be paid per day, as per RBI directives in case of failed ATM transactions ?

(a) Rs. 50

(b) Rs. 100

(c) Rs. 200

(d) Rs. 500

(e) It is at the discretion of each Bank

Answer: (b)

Securitisation and Reconstruction of Financial Assets and Enforcement of security Interest Act relates to—

(a) Sanction of loans

(b) Enhancement of loan limits

(c) Recovery of loans

(d) All the above

(e) None of above

Answer:  (c)

Bridge loans refer to—

(a) Loans granted to contruction companies for construction of bridges

(b) Loan granted to PWD for construction of bridges over Rivers

(c) Interim finance allowed by banks to their customers pending disbursement of term loans by financial institutions

(d) All of the above

(e) None of the above

Answer: (c)

Constitutionally, which one of the following can levy Service Tax ?

(a) Union Govt. only

(b) State Govt. only

(c) Union Territory Govt. only

(d) All of these

(e) None of these

Answer: (d)

The Foreign Exchange Reserve of India are kept in the custody of ____

(a) World Bank

(b) International Monetary Fund

(c) Prime Minister Rahat Kosh

(d) Reserve Bank of India

(e) None of these

Answer: (d)

7. Which of the following is known as Plastic money ?

1. Demand Draft

2. Credit Card

3. Debit Card

(a) Only 1

(b) Only 2

(c) Only 3

(d) Both 2 and 3

(e) All 1, 2 and 3

Answer: (d)

Expand IPO?

(a) Indian Public Offer

(b) Institutional Purchase

(c) Industrial Purchase Order

(d) Indian Purchase Offer

(e) Initial Public Offering

Answer: (e)

Payment of Demand Draft can be stopped by ________

(a) Payee

(b) Holder

(c) Purchaser

(d) All of these

(e) None of these

Answer: (a)

Can any one file an appeal against the order passed by the Banking Ombudsman ? If so who is the Appellate Authority ?

(a) The Chairman of concerned Bank

(b) The Deputy Governor RBI

(c) Governor of RBI

(d) Finance Minister

(e) None of the above

Answer: (b)

What is monetary policy transmission ?

(a) It refers to monetary policy of Central Bank

(b) It refers to fiscal policy of Government

(c) It refers to various channels through which the monetary policy of a Central Bank alters prices or output in the real economy

(d) It refers to various channels through which the fiscal policy of the Government alters prices or output in the real economy

(e) None of these

Answer: (c)

Bancassurance is _______

(a) an insurance scheme to insure bank deposits

(b) an insurance scheme exclusively for the employees of banks

(c) a composite financial service offering both bank and insurance product

(d) a bank deposits scheme exclusively for employees of insurance companies

(e) None of the above

Answer: (c)

Which one of the following Organisations maintains CRR ?

(a) RBI

(b) SEBI

(c) NABARD

(d) IBA

(e) None of these

Answer: (a)

Structure of Basel II is based on how many pillars ?

(a) Two

(b) Three

(c) Four

(d) Eight

(e) Six

Answer: (b)

Financial year in Banks is period between?

(a) January to December

(b) May to June

(c) April to March

(d) January to April

(e) None of these

Answer: (c)

Which of the following is considered as the financial capital of India?

(a) New Delhi

(b) Kolkata

(c) Bangalore

(d) Ahmedabad

(e) Mumbai

Answer: (e)

Which of the following statement(s) correctly describes what a derivative is and how it affects money/finance markets ?

(1) Derivatives enable individuals and companies to insure themselves against financial risk.

(2) Derivatives are like fixed deposits in a bank and are the safest way to invest one’s idle money lying in a bank.

(3) Derivatives are the financial instruments which were used in India even during the British Raj.

(a) Only 3

(b) Only 2

(c) Only 1

(d) All 1, 2 and 3

(e) None of these

Answer: (b)

MSMED Act is applicable to _____

(a) Smalls enterprises only

(b) Medium enterprises only

(c) Micro enterprises only

(d) Micro, Small and Medium enterprises

(e) All enterprises irrespective of their size engaged in manufacturing activity

Answer: (d)

Money Laundering refers to ______

(a) Conversion of assets into cash

(b) Conversion of Money which is illegally obtained

(c) Conversion of cash into gold

(d) Conversion of gold into cash

(e) None of the above

Answer: (b)

The Monetary and Credit Policy is reviewed by the RBI after a gap of ______

(a) one year

(b) one month

(c) two years

(d) five years

(e) None of these

Answer: (e)

PPF account is opened for a period of _______

(a) 5 years

(b) 10 years

(c) 15 years

(d) 20 years

(e) None of these

Answer: (c)

Code of banks commitment to Micro and Small enterprises is prepared by _____

(a) RBI

(b) SEBI

(c) FEDAI

(d) BCSBI

(e) Ministry of Small and Medium Enterprises

Answer: (e)

There are certain financial instruments whose prices are derived from the price of the underlying currency of interest rate or stocks etc. These are known as ______

(a) Derivatives

(b) Securitisation

(c) Leasing

(d) Factoring

(e) Venture Capital Funding

Answer: (a)

What is the full form of ASBA ?

(a) Allotment supported by Blocked Amount

(b) Application supported by Blocked Amount

(c) Application supported by Bank Amount

(d) Allotment supported by Bank Account

(e) None of the above

Answer: (b)

Reverse Repo is used by RBI to ______

(a) Inject liquidity

(b) Absorb liquidity

(c) Increase the liquidity with banking system

(d) Keep the liquidity at one level

(e) None of the above

Answer: (d)

The market in which long term securities such as stocks and bonds are bought and sold is commonly known a ______

(a) Commodities Exchange

(b) Capital Market

(c) Bull Market

(d) Bullion Market

(e) None of these

Answer: (b)