Quiz on Banking Awareness

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Number of Questions: 10

1. Scheduled Banks are classified under which act?
   A) RBI Act, 1934
   B) Banking Regulation Act, 1949
   C) Negotiable Instrument Act, 1881
   D) Companies Act, 2013
   
   View answer

     Option A
   Explanation: A Scheduled Bank, in India, refers to a bank which is listed in second schedule of the RBI Act, 1934.
2. The contract notes that are issued by Foreign Institutional Investor (FII) to their clients (not registered with SEBI), investing in Indian Stock Market.
   A) Depository receipt
   B) Derivative
   C) Promissory Note
   D) Participatory Note
   
   View answer

     Option D
3. Which of the following payment system location does not match
   A) Clearing House Inter-bank Payment System (CHIPS) – US
   B) Clearing House Automated Payment System (CHAPS) – Russia
   C) Clearing House Automated Transfer System (CHATS) – Hongkong
   D) INFINET – India
   
   View answer

   Option B
   Explanation: CHAPS is a British Payment System, whish offers same day sterling fund transfers. CHAPS was originally established in London by the Bankers Clearing House in February 1984.
4. The term “Audit Trail” stands for
   A) Audit history of a firm
   B) credit history of a firm
   C) chronological sequence of transactions
   D) documentation of items purchased
   
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   Option C
   Explanation: An audit trail describes the chronological sequence of transactions, communications or both, and serves as a tool for facilitating financial or legal research and investigations to verify that all involved parties are fair, honest and truthful
5. Customer is defined as per provision of:
   A) Indian Contract Act, 1872
   B) Negotiable Instrument Act, 1881
   C) Banking Regulation Act, 1949
   D) KYC guidelines
   
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   Option D
   Explanation: Customer is defined as per KYC guidelines under Prevention of Money Laundering Act, 2002
6. ____ is a loan that is made for a very short period of few days only with a low rate of interest.
   A) Commodity money
   B) Call money
   C) Notice money
   D) Term money
   
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   Option B
   Explanation: Call money is a money loaned by bank that must be repaid on demand, which has a maturity period of one to fourteen days or overnight to fortnight.
7. ____ is the amount of funds borrowed by the government to meet the expenditures.
   A) Capital deficit
   B) Fiscal deficit
   C) Budget deficit
   D) Revenue deticit
   
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   Option B
   Explanation: Fiscal Deficit= total expenditure – total receipts except borrowings. A fiscal deficit occurs when a government’s total expenditures exceed the revenue that it generates, excluding money from borrowings. 
8. Government of India can print Rs. 1 note ans coins as per which act?
   A) RBI Act, 1934
   B) Coinage Act, 2011
   C) Paper Currency Act, 1861
   D) None of the above
   
   View answer

   Option B
9. _____ is an account that can be opened generally for business purposes with no restrictions on withdrawals and no interest paid
   A) Current Account
   B) Saving Account
   C) Fixed Deposit Account
   D) Demat Account
   
   View answer

   Option A
10. Which among the following organization is the regulator of Micro, Small and Medium enterprises in India?
    A) RBI
    B) NABARD
    C) SEBI
    D) SIDBI
    
    View answer

    Option A

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