Banking Awareness Quiz-2

Some banks are financing projects like "Construction Roads/Bridges etc.Financing such projects means banks are helping exactly in ?

(1) Developing Core Sector Industry

(2) Project Management

(3) Infrastructural Development

(4) Financial Inclusion

(5) All of these

Which of the following is NOT a Nationalized Bank in India?

(1) Union Bank of India

(2) Central Bank of India

(3) Yes Bank

(4) Syndicate Bank

(5) Indian Bank

Sub-prime lending refers to ?

(1) lending to the customers who are most valued for the bank.

(2) lending to the customers who come to the bank for the very first time

(3) lending to the people with less than standard credit status

(4) lending to the people who live a sub-standard life.

(5) None of these

Which of the following cannot be a feature of  a Debit card?

(1) These cards cannot be used as POS Centres

(2) Banks earn huge amount as penalties for defaulting on payment through these cards.

(3) Can be used normal withdrawals.

(4) Only 1 and 2

(5) All 1,2 and 3

The Banking Ombudsman

(1) is in charge of bank loans for buses

(2) fixes the rates of interest for loans

(3) resolves complaints of customer

(4) is the head of all nationalized bank

(5) none of these

The drawee of a cheque can be ?

(1) one person

(2) two person

(3) any legal or juristic person

(4) a bank

(5) none of these

The following contains an order to pay money ?

(1) Bill of exchange

(2) Cheque

(3) Promissory Note

(4) Only (1) and (2)

(5) None of these

 When a bank returns a cheque unpaid, it is called ?

     (1) payment of the cheque
     (2) drawing of the cheque
     (3) canceling of the cheque
     (4) dishonour of the cheque
     (5) taking of the cheque

 NEFT means ?

     (1) National Electronic Funds Transfer system
     (2) Negotiated Efficient Fund Transfer system
     (3) National Efficient Fund Transfer solution
     (4) Non Effective Fund Transfer system
     (5) Negotiated Electronic Foreign Transfer system

Upper limit prescribed for RTGS transaction is ?
     (1) Rs. 1 lac
     (2) Rs. 2 lacs
     (3) Rs. 5 lacs
     (4) Rs. 50 lacs
     (5) No upper limit is prescribed

Lower limit prescribed for RTGS transaction is ?

     (1) Rs. 1 lac
     (2) Rs. 2 lacs
     (3) Rs. 5 lacs
     (4) Rs. 50 lacs
     (5) No Lower limit is prescribed

 In order to attract more foreign exchange the Government of India decided to allow foreign
 investment in LLP firms. What is full form of ‘LLP’ as  used in this reference?

     (1) Local Labour Promotion
     (2) Low Labour Projects
     (3) Limited Loan Partnership
     (4) Longer Liability Partnership
     (5) Limited Liability Partnership

Interest on Saving bank account is now calculated by  banks on ?

     (1) minimum balance during the month
     (2) minimum balance from 7th to last day of the month
     (3) minimum balance from 10th to last day of the month
     (4) maximum balance during the month
     (5) daily product basis

When the rate of inflation increases ?

     (1) purchasing power of money increases
     (2) purchasing power of money decreases
     (3) value of money increases
     (4) purchasing power of money remains unaffected
     (5) amount of money in circulation decreases

 The Unit Trust of India came into existence in ?

     (1) 1960      (2) 1962   (3) 1964     (4) 1966   (5) 1968

Mutual Funds fall within 7 supervisory purview of ?

     (1) SBI
     (2) RBI
     (3) SEBI (Securities Exchange Board of India)
     (4) IRDA
     (5) None of these

 Which of the following does not come under the category of Development Banks?

    (1) Industrial Development Bank of India
    (2) Small Industries Development Bank of India
    (3) Industrial Investment Bank of India
    (4) State Finance Corporation
    (5) Export-import Bank

Financial institutions ?
    (1) promote savings
    (2) mobilise savings
    (3) allocate savings among different users
    (4) All of the above
    (5) None of the above

Cash Reserve Ration (CRR) funds are kept by the Banks in

1)       Cash in hands at branches

2)       Balances with other banks

3)       Balance in a special account with RBI

4)       Funds in the currency chest

5)       None of the above

Who said the nationalization of banks is the 'masterstroke of political sagacity'?

1)       Raj Narayan

2)       Jayprakash Narayan

3)       Indira Gandhi

4)       JL Nehru

5)       None of them

Which of the following is no one of the RBI directives on Clean Note policy?

1)       Currency note packets are not to be stapled and secured with paper bands

2)       Water mark window of bank notes shall not contain any writing

3)       Soiled notes are to be stapled before they are remitted to currency chest

4)       Currency notes are to be sorted in to issuable and non-issuable notes

5)       None of the above

Which banks are referred as the Schedule Banks?

1)       Included in the 2nd schedule of the Banking Regulation Act 1949

2)       Included in the 2nd schedule of the Reserve Bank of India Act 1934

3)       Included in the 2nd schedule of the Companies Act 1956

4)       Included in the Bank Nationalization Act 1969

5)       None of these

The Interest on Recurring Deposit is paid on the basis of?

1)       Simple Interest calculated monthly basis

2)       Simple Interest on monthly product basis

3)       Interest Calculated on daily product basis

4)       Quarterly Compounding

5)       None of these

Bad Debts mean?

1)       Amounts owe to a company that are not going to be paid

2)       Amounts owe to a company that are going to be paid

3)       Amounts owe to a company that are going to be paid within 2 years

4)       Amounts owe to a company that are going to be paid within 8 years

5)       None of the above

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 ?

1)       Demand Deposit

2)       Term Deposit

3)       Mortgage

4)       Advances

5)       Bond

Many times we read in newspapers that several companies are adopting the FCCB's route to raise capital. What is the full form of FCCBs?

1)       Financial Consortium and Credit Bureau

2)       Foreign convertible credit bonds

3)       Foreign Currency Convertible Bonds

4)       Future Credit and Currency Bureau

5)       None of these

Inflation in India is measured on which of the following Indexes/ Indicators?

1)       Cost of living index (COLI)

2)       Consumer Price Index (CPI)

3)       Gross Domestic Product (GDP)

4)       Wholesale Price Index (WPI)

5)   None of these

Which of the following is a function of the agent bank relating to flow of money in the process of loan syndication?

1)       Calling of loans in the event of default

2)       Receiving notices relating to cancellation of any part of the loan

3)       Receiving notices relating to transfers of banks

4)       Receiving the fees from the borrower and distributing among the participating banks

5)       None of the above

Regional Rural Banks (RRBs) have been setup with the basic objectives of ?

1)       Providing Deposit facilities to farmers

2)       Providing credit to semi urban and urban population

3)       providing credit, deposit and other banking facilities to people in rural areas

4)       Providing credit and deposit facilities to rural areas

5)   None of them

1. In regards to insurance, “A policy provision that allows a policy to be restored from a lapsed status and resume active coverage” is termed as?

1.     Reaffirmation
2.     Reinsurance
3.     Reinstatement
4.     Revocation
5.     None of these

2.Which of the following is not a tool in the hands of RBI to control the inflationary pressure in the country ?

1.              Bank Rate (BR)
2.              Special Drawing Rights (SDR)
3.              Statutory Liquidity Ratio (SLR)
4.              Cash Reserve Ratio (CRR)
5.              None of these

3.On the recommendation of which committee was NABARD established?

1.          Rangarajan
2.          Shivraman
3.          Narasingam
4.          Vijay Kelkar
5.          Malegam

4. Which of the following committee is set up for giving clear definition to FDI and FII with an aim to remove ambiguity over the two types of Foreign Investments?

1. Gopinath Committee
2. Araving Mayaram Committee
3. Subir Gokaran Committee
4. Sushma Nath Committee
5. None of the above

5. Which of the following is not a salient feature of Debit Card?

1)       No Bad debts to banks and no suits for recovery

2)       No Interest earning for banks

3)       Works like a normal withdrawal

4)       Can be used at ATM and POS

5)       45Days credit given to the Customer

6. Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfillment of its terms and conditions. What is this arrangement known in Banking context?

1)       Line of Credit

2)       Letter of Credit

3)       Loan to client

4)       Loan on Credit

5)       Loan against Credit

7. When a Bank provides a loan for purchase of White Goods, it is categorised as?

1)       Consumption loan

2)       White Goods Loan

3)       Consumer Durable Loan

4)       Working Capital

5)       Bridge Loan

8. With reference to a cheque which of the following is the Drawee Bank?

1)       The Bank that collects the cheque

2)       The Payee's Bank

3)       The endorsee's Bank

4)       The endorser's Bank

5)       The Bank upon which the cheque is drawn

9.Which of the following is correct statement?

1)       Normally no interest is paid on current deposit

2)       Interest is paid on current accounts at the same rate as term deposit accounts

3)       The rate of interest on current account and savings account are the same

4)       No interest is paid on any deposit by the bank

5)       Savings deposits are the same as current deposits

10. Fixed deposits recurring deposits are -

1)       Repayable on demand or after an agreed period as per bank's choice.

2)       repayable after an agreed period

3)       repayable on demand

4)       repayable after death of depositors

5)       not repayable

11. The usual deposit accounts of banks are

1)       Current Accounts, electricity accounts and insurance premium accounts

2)       Current accounts, Post Office savings bank accounts and term deposit accounts

3)       Loan accounts, savings bank accounts and term deposit account

4)       Current bill accounts and term deposit accounts

5)       Current accounts, savings bank accounts and term deposits accounts

12. Financial Inclusion means provision of -

1)      Ration at affordable cost to person not yet given the same

2)      house at affordable cost to the person not yet given the same

3)      Financial Services namely, payments, remittances, savings, loans and insurance at affordable cost to person not yet given the same

4)      food at affordable cost to person not yet given the same

5)      education at affordable cost to person not yet given the same

13. Which of the following is known as cross selling by Banks? 

A) Sale of credit card to a debit card holder

B) Sale of a Insurance Policy to a depositor

C) Issuance of Cash against Cheque presented by a third party

1)       Only A

2)       Only B

3)       Only C

4)       Both A and C

5)       All A, B and C

14. As per the New Guideline issued by the Reserve Bank of India, which of the following categories will be given relaxation in KYC norms while opening bank account and borrowing from the banks?

1)       Marginal Farmers

2)       Daily Labours

3)       Self Help Groups

4)       All the above

5)       None of the above

 15. Which of the following is not a measure to control inflation adopted by the Government or Reserve Bank of India (RBI)

1)       Monetary Policy

2)       Fiscal Policy

3)       Public Distribution System

4)       Price Control

5)       Financial Inclusion