Banking & Financial Awareness Quiz – Set 121

Banking & Financial 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 AAO. So attempt all the sets now.

Banking & Financial Awareness Questions

1. The Open Market Operations (OMO) is a part of ________
   A) Monetary Policy
   B) Fiscal Policy
   C) Income Policy
   D) All the above
   
   View answer

   Option A
   
2. What percent of net bank credit is required to be paid by Scheduled Commercial banks in India to priority sector in advance?
   A) 30%
   B) 20%
   C) 10%
   D) 40%
   
   View answer

   Option D
   Explanation: Scheduled commercial banks and Foreign banks with 20 branches and above will pay 40 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.
3. What is the full form of ASBA?
   A) Actual Savings and Balance Accumulated
   B) Applications Supported by Blocked Amount
   C) Accreditation of Stock and Bonds Account
   D) Account Seized and Blocked Assets
   
   View answer

   Option B
   Explanation: ASBA (Applications Supported by Blocked Amount) is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until shares are allotted to them.
4. The Fiscal Policy in India is formulated ____________
   A) Ministry of finance
   B) Reserve Bank of India
   C) Finance Commission
   D) NITI Aayog
   
   View answer

   Option A
   
5. A type of banking which involves placing funds only in short-term, risk free assets such as government securities is called?
   A) Islamic Banking
   B) Universal Banking
   C) Narrow Banking
   D) Core Banking
   
   View answer

   Option C
   
6. Which of these committees recommended the merger of Regional Rural Banks with their Sponsor banks?
   A) Malegam Committee
   B) Narshimham Committee
   C) Khan Committee
   D) Khusro Committee
   
   View answer

   Option D
   
7. The bad debt recovered by a bank becomes ________ for the organisation
   A) Expense
   B) Income
   C) Asset
   D) Debt
   
   View answer

   Option B
   Explanation: Bad debts are considered as an Income
8. The Rural Infrastructure Development Fund (RIDF) is maintained by ____________
   A) SEBI
   B) RBI
   C) NABARD
   D) Ministry of Finance
   
   View answer

   Option C
   
9. LLP is acronym for ___________
   A) Limited Loan Participation
   B) Limited Liquidity Proportion
   C) Limited Leverage Percent
   D) Limited Liability Partnership
   
   View answer

   Option D
   Explanation: A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In a LLP, each partner is not responsible or liable for another partner’s misconduct or negligence.
10. The Statutory Liquidity Ratio (SLR) is maintained by banks on __________
    A) Net Demand and Time Liabilities
    B) Demand and Time Liabilities
    C) Net Demand and Time Deposits
    D) Demand and Time Deposits
    
    View answer

    Option A
    

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