Banking & Financial Awareness Quiz – Set 122

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 overall rise in the cost of goods that results from a rise in the amount people earn over time is known as  ___________
   A) Wage Push Inflation
   B) Pricing Power Inflation
   C) Cost Push Inflation
   D) Sectoral Inflation
   
   View answer

   Option A
   
2. What does ALM stands for in banking & Finance?
   A) Asset Liquidity Maturity
   B) Asset Liability Management
   C) Asset Leverage Method
   D) Asset Liquidity Management
   
   View answer

   Option B
   
3. What is the minimum capital requirement for corporates to set up a bank as per RBI?
   A) Rs 200 crore
   B) Rs 400 crore
   C) Rs 300 crore
   D) Rs 500 crore
   
   View answer

   Option D
   
4. Which of these institutions maintains the Micro Finance Development and Equity Fund (MFDEF)?
   A) RBI
   B) SIDBI
   C) NABARD
   D) Ministry of Finance
   
   View answer

   Option C
   Explanation: The MFDEF maintained by NABARD is used for promotion of micro finance through scaling-up of the SHG-bank linkage programme, extending RFA and capital support to MFIs and undertake various promotional initiatives.
5. Which of these determines the rate of interest on term deposits in banks?
   A) Ministry of Finance
   B) Reserve Bank of India
   C) Indian Banks Association
   D) Banks itself
   
   View answer

   Option D
   
6. What is the minimum tenure for which NRE term deposit account can be opened?
   A) 48 months
   B) 12 months
   C) 24 months
   D) 36 months
   
   View answer

   Option B
   Explanation: NRE Deposits can be accepted for a minimum tenure of 12 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.
7. Which of these cannot be endorsed?
   A) Fixed deposit receipt
   B) Bank draft
   C) Promissory note
   D) Cheque
   
   View answer

   Option A
   
8. Which of these is the first Public Sector Bank to obtain licence from RBI for internet banking?
   A) Oriental Bank of Commerce
   B) Corporation Bank
   C) Punjab National Bank
   D) State Bank of India
   
   View answer

   Option C
   
9. Which of the following deposits is not accepted by commercial banks?
   A) Fixed deposit
   B) Demand deposit
   C) Recurring deposit
   D) Public Account deposit
   
   View answer

   Option D
   
10. The National Stock Exchange (NSE) has been barred from accessing securities market for a period of___________
    A) 12 months
    B) 6 months
    C) 3 months
    D) 4 months
    
    View answer

    Option B
    Explanation: Securities and Exchange Board of India (SEBI) has barred National Stock Exchange (NSE) from accessing the securities market directly or indirectly for a period of six months starting from April 30, 2019. It means NSE cannot launch a new derivative product for the next six months.

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