Banking Quiz.

Banking & Financial Awareness Quiz – Set 187

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. So attempt all the sets now.

  1. Repo rate and reverse repo rate are the parts of
    A) LAF

    B) SLR
    C) OMO
    D) CRR
    View answer
    Option A
    Explanation: Liquidity Adjustment Facility (LAF)
  2. RBI has previously served as the central bank of which of the following countries?
    A) Pakistan

    B) Myanmar
    C) Nepal
    D) Both A & B
    View answer
    Option D
    Explanation: RBI acted as Burma’s (now Myanmar) central bank until April 1947 and served as the central bank for Pakistan until June 1948
  3. Which of the following rates is decided by RBI?
    A) Base rate

    B) Deposit rate
    C) Prime lending rate
    D) All the above
    View answer
    Option B
    Explanation: Base rate and PLR are decided by individual banks
  4. In SARFAESI, what does I stands for?
    A) India

    B) Information
    C) Interest 
    D) Income
    View answer
    Option C
    Explanation: Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002
  5. What is the specified limit for public sector banks to provide loans to the priority sector?
    A) 35%

    B) 45%
    C) 32%
    D) 40%
    View answer
    Option D
    Explanation: Domestic scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks) and Foreign banks with 20 branches and above has a limit of 40 per cent of Adjusted Net Bank Credit 
  6. The first Regional Rural Banks (RRBs) in India was set up in which city?
    A) Moradabad

    B) Gorakhpur
    C) Bhiwani
    D) Malde
    View answer
    Option A
    Explanation: Prathama Bank in Moradabad district of Uttar Pradesh is the first RRB with authorised capital of Rs 5 crore
  7. The government securities having maturity of more than one year is known as
    A) Bills of exchange

    B) Treasury bills
    C) Government bonds
    D) Capital bills
    View answer
    Option C
    Explanation: short term securities are called treasury bills with original maturities of less than one year and long term are called government bonds or dated securities with original maturity of one year or more
  8. The currency in circulation is included in which category?
    A) M1

    B) M2
    C) M3
    D) All the three
    View answer
    Option D
    Explanation: M1 include coins and notes that are in circulation and other money equivalents that can be converted easily to cashM2 includes M1 and also short-term time deposits in banks and certain money market fundsM3 includes M2 in addition to long-term deposits
  9. Which of these organisations provides credit history of the borrowers?
    A) ARCIL

    B) CIBIL
    C) CCIL
    D) CRISIL
    View answer
    Option B
    Explanation: Credit Information Bureau India Limited is the first Credit Information Company in India. 
  10. Financial inclusion helps people to
    A) Access financial markets

    B) Access credit markets
    C) Learn financial matters
    D) All the above
    View answer
    Option D

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