Banking Awareness Quiz Set 1

1. The rules framed in the Clayton’s case have been incorporated in _________

A. Banking Regulation Act, 1949

B. Reserve Bank of India Act, 1934

C. Negotiable Instruments Act, 1881

D. Indian Contract Act, 1872

2. Banks are required to maintain SLR under_____

A. Section 24 of the Banking Regulation Act

B. Section 35 of the Negotiable Instrument Act, 1881

C. Section 24 of RBI Act

D. Section 40 of Indian Contract Act, 1872

3. The Definition of ‘Banking’ is given in _______

A. Negotiable Instrument Act, 1881

B. RBI Act, 1934

C. The Banking Regulation Act, 1949

D. Indian Contract Act, 1872

4. Which of the following was/were established under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993?

A. DRTs

B. DRATs

C. ATs

D. Both (A) and (B)

5. A Shareholder has been defined by ________

A. Banking Regulation Act, 1949

B. Reserve Bank of India Act, 1934

C. Negotiable Instruments Act, 1881

D. Indian Contract Act, 1872

E. The companies act, 1956

6. Which of the following is governed by the provisions of Section 42 of the Reserve Bank of India Act, 1934?

A. Bank rate

B. Reverse Repo Rate

C. SLR

D. CRR

7. Spurious coins detected at the counter are sent to _____

A. RBI

B. GOI

C. IBRD

D. Mint

8. Minimum period of reinvestment deposits is _______

A. 2 months

B. 3 months

C. 6 months

D. 9 months

9. On a Cheque instead of two parallel lines only bank’s name is written is known as _________

A. Payable to bearer

B. General Crossing

C. Special Crossing

D. Both (B) and (C)

10. What is the minimum limit in reinvestment deposits?

A. 100

B. 500

C. 1000

D. 5000

11. Which of the following is/are correct about the “Operational Risk” as used in the field of banking?

A. Risk of loss due to inadequate or failed internal process

B. Risk of loss due to natural calamities

C. Loss occurred due to non-compliance of legal procedures

D. All of the Above

12. When a corporate entity wishes to raise money from the market it can do that by issuing

A. Treasury Bills

B. Kisan Vikas Patra

C. National Savings Certificate

D. Commercial Papers

13. What is/are the characteristics of ‘Hot Money’?

A. The term is used for fresh currency notes issued by RBI

B. It is the fund which inflows in the market to take advantage of high-interest rates

C. It is the fund which is thrown in the market to create imbalance in the stock markets

D. All of the Above

14. When an agent asks a customer to invest in a Mutual Fund product without telling him/her about the risks involved in the investment, the process is termed as ______

A. Mis-selling

B. Undertaking

C. Misappropriation of Funds

D. cross selling

15. Sub-prime lending refers to ________

A. lending done by banks at rates below PLR

B. Funds raised by the banks at sub-libor rates

C. Group of banks which are not rated as prime banks as per Banker’s Almanac

D. lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards

16. In the Capital market, the term arbitrage is used with reference to ______

A. Purchase of securities to cover the sale

B. Sale of securities to reduce the loss on purchase

C. Simultaneous purchase and sale of securities to make profits from price

D. Variation in different markets

17. Currency Swap is an instrument to manage _______

A. currency risk

B. interest rate risk

C. currency and interest rate risk

D. cash flows in different currency

18. Trade Gap means

A. Gap between total GDP and total consumption

B. Gap between total imports and total exports

C. Gap between available liquidity and expected demand in next five months

D. Gap between budgeted revenue collection and actual collection of the same

19. Head quarters of National Council of Applied Economic Research(NCAER) is located in ______

A. Mumbai

B. New Delhi

C. Hyderabad

D. Chennai

20. Which of the following agencies in India is responsible for computation of national income?

A. NCAER

B. CSO

C. NSS

D. RBI

21. Which of the following is the most active segment of the money market in India?

A. Commercial Paper(CP)

B. Certificate of Deposit(CD)

C. Call Money

D. All of the above

22. SEPA Stands for ______

A. Scottish Environment Protection Agency

B. Single Euro Payments Area

C. Scottish Environment Protection Area

D. Single Euro Payments Agency

23. The paid up capital and collected funds of scheduled bank must not be less than _________

A. Rs. 10 lakh

B. Rs. 20 lakh

C. Rs. 15 lakh

D. Rs. 5 lakh

24. Co-operative banks are regulated by the Reserve Bank of India under _________

A. Banking Regulation Act, 1949

B. Banking Laws (Application to Co-operative Societies) Act, 1965

C. Both (A) and (B)

D. Negotiable Instrument Act–1881

25. The paid-up capital of non-scheduled bank is less than _____

A. Rs. 10 lakh

B. Rs. 20 lakh

C. Rs. 15 lakh

D. Rs. 5 lakh

26. All banks registered under the ___________ are considered co-operative banks.

A. Banking Regulation Act 1949

B. The Bankers’Books Evidence Act–1891

C. Cooperative Societies Act, 1912

D. Both (B) and (C)

27. A negotiable instrument delivered to a person conditionally or for safe custody, but not for the purpose of negotiation is called _________

A. Protest

B. Escrow

C. Noting

D. All of the Above

28. _______ refers to the system in which two are more banks are brought under common control by a device other than the holding company?

A. Chain Banking

B. Group Banking

C. Mixed Banking

D. Branch Banking

29. __________ is the process by which the ownership of the credit instrument is transferred from one person to another.

A. Assignment

B. Endorsement

C. Negotiation

D. All of the Above

30. A charge where there is neither the transfer of ownership nor the possession is called _______

A. Pledge

B. Hypothecation

C. Mortgage

D. Lien

Banking Awareness Quiz Set 1

Banking Awareness Quiz Set 1

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