Banking Quiz.

Banking Awareness Quiz – Set 89 – Miscellaneous

Banking Awareness Quiz: We have created many quizzes on Banking Awareness and this set is one of them. These questions are most important for banking and insurance exams. The question asked in the Banking Awareness section are based both on static banking and that to current banking in news. These Banking Awareness sets will guide you in all banking exams like IBPS Clerk, IBPS PO, SBI Clerk, SBI PO, RRB Clerk and PO and other exams.  The set will be beneficial for the Banking and financial awareness section of LIC AAOSo attempt all the sets now.

Banking Awareness Questions

  1. A ___________means that more money is flowing out of the economy along with increase in its ownership of foreign assets
    A) Balance of Trade
    B) Current Account Deficit
    C) Balance of Payments
    D) Capital Account Deficit
    View answer
    Option D
    Explanation:
    A deficit in the capital account means money is flowing out of the country, and it suggests the nation is increasing its ownership of foreign assets. 
  2. CD ratio is the ratio of how much a bank lends out of the deposits it has mobilized. What does CD denotes?
    A) Credit Deposit
    B) Capital Deficit
    C) Cash Deposit
    D) Currency Demand
    View answer
    Option A
  3. ___________measures the average change in prices paid by the specific type of consumer for consuming goods and services in the current year in comparison to a base year.
    A) Wholesale Price Index
    B) Industrial Production Index
    C) Consumer Price Index
    D) Composite Production Index
    View answer
    Option C
    Explanation:
    Consumer Price Indices (CPI) measure changes over time in general level of prices of goods and services that households acquire for the purpose of consumption.
  4. DRI Scheme was introduced to provide bank finance at a concessional rate of interest to weaker section of the society. What does DRI stands for?
    A) Differential Rate of Interest
    B) Demand Receipt of Interest
    C) Direct Refinance Investment
    D) Discounted Rate of Investment
    View answer
    Option A
    Explanation:
    DRI Scheme provides bank finance at a concessional rate of interest of 4 per cent p.a. to the weaker sections of the community for engaging in productive and gainful activities so that they could improve their economic conditions.
  5. FRA are over-the-counter contracts between parties that determine the rate of interest to be paid on an agreed upon date in the future. Expand FRA.
    A) Funded Rate Agreement
    B) Forecast Rate Agreement
    C) Foreign Rate Agreement
    D) Forward Rate Agreement
    View answer
    Option D
  6. Under the Liberalised Remittance Scheme, all Indian residents are permitted to remit up to ___________ for one financial year for any permitted current or capital account transactions or for both
    A) USD 50,000
    B) USD 250,000
    C) USD 100,000
    D) USD 150,000
    View answer
    Option B
    Explanation:
    Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
  7. The __________is the aggregate rate of interest paid on all debt.
    A) Weighted Average Interest Rate
    B) Differential Rate of Interest
    C) Nominal Effective Exchange Rate
    D) Capital to Risk Weighted Asset Ratio
    View answer
    Option A
  8. SMA was introduced by the RBI in 2014, to identify those accounts that has the potential to become an NPA/Stressed Asset. What does it stands for?
    A) Statutory Maturity Assets
    B) Stressed Monitoring Accounts
    C) Stressed Monetary Assets
    D) Special Mention Accounts
    View answer
    Option D
  9. The initiative of Bank Self Help Group Linkage Programme was launched by which organisation to provide banking services to the weaker and unorganised sector?
    A) SIDBI
    B) NABARD
    C) RBI
    D) SEBI
    View answer
    Option B
  10. The Unified Payments Interface (UPI) is regulated by__________
    A) Central Government
    B) Scheduled Banks
    C) RBI
    D) NPCI
    View answer
    Option C
    Explanation:
    Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of Indiafacilitating inter-bank transactions. The interface is regulated by the Reserve Bank of India

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