Banking Awareness Quiz – Set 211

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. So attempt all the sets now.

1. The Financial Stability Report (FSR) determines the risks to financial stability of a country as well as the issues relating to development and regulation of the financial sector. The FSR is released by which organisation in India?
   A) Ministry of Finance
   B) Reserve Bank of India
   C) Indian Banks’ Association (IBA)
   D) National Payments Corporation of India
   
   View answer

   Option B
   Explanation: The Reserve Bank of India released the 20th issue of the Financial Stability Report (FSR) on December 27, 2019.
2. Based on the latest Financial Stability Report, the PCR of all Scheduled commercial banks’ (SCBs) rose in September 2019 as compared to March 2019. Expand PCR
   A) Periodic Cost Ratio
   B) Proposed Credit Ratio
   C) Provision Coverage Ratio
   D) Progress Chart Report
   
   View answer

   Option C
   Explanation: Provision Coverage Ratio (PCR) of all SCBs rose to 61.5 per cent in September 2019 from 60.5 per cent in March 2019 implying increased resilience of the banking sector.
3. CRAR is the ratio of a bank’s capital to its risk. What does it stands for?
   A) Capital to Risk Assets Ratio
   B) Capital to Risk Adequacy Ratio
   C) Capital to Risk Amount Ratio
   D) Capital to Risk Analysis Ratio
   
   View answer

   Option A
   Explanation: Capital Adequacy Ratio is also known as Capital to Risk Assets Ratio, is the ratio of a bank’s capital to its risk.
4. RBI has created CRILC for  strengthening offsite supervision and early recognition of financial distress. What is the full form of CRILC?
   A) Combined Report of Investigation on Large Credits
   B) Central Repository of Information on Large Credits
   C) Collateral Resource of Information on Large Credits
   D) Credit Rating of Institutions on Large Credits
   
   View answer

   Option B
   Explanation: The Reserve Bank has created a Central Repository of Information on Large Credits (CRILC) of scheduled commercial banks, all India financial institutions and certain non-banking financial companies with multiple objectives, which, among others, include strengthening offsite supervision and early recognition of financial distress. With a view to building a similar database of large credits extended by primary (urban) co-operative banks (UCBs), it has been decided to bring UCBs with assets of ₹500 crores and above under the CRILC reporting framework. Detailed instructions in this regard will be issued by December 31, 2019.
5. SMA is an account that has the potential to become an NPA/Stressed Asset. What does SMA denotes?
   A) Special Mention Accounts
   B) Stressed Management Accounts
   C) Solvent Monetary Accounts
   D) Stabilized Monthly Accounts
   
   View answer

   Option A
   Explanation: Special Mention Accounts (SMA) was introduced by the RBI in 2014, to identify those accounts that has the potential to become an NPA/Stressed Asset. 
6. India’s CAD narrowed at US$ 6.3 billion as per the preliminary data on India’s Balance of Payments (BoP) for the second quarter (July-September) of 2019-20. Expand the CAD.
   A) Currency Account Deficit
   B) Cost Account Deficit
   C) Credit Account Default
   D) Current Account Deficit
   
   View answer

   Option D
   Explanation: Current Account Deficit (CAD) 
7. The data regarding the India’s International Investment Position (IIP) is released by?
   A) Ministry of Finance
   B) RBI
   C) Indian Banks’ Association (IBA)
   D) National Payments Corporation of India
   
   View answer

   Option B
   Explanation: RBI
8. As per the RBI’s recent “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector”, what should be the minimum net worth requirement of the entity?
   A) Rs 100 crore
   B) Rs 500 crore
   C) Rs 200 crore
   D) Rs 400 crore
   
   View answer

   Option C
   Explanation: Minimum paid-up voting equity capital / net worth requirement shall be ₹ 200 crore;
9. RBI has capped the aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms to
   A) Rs 50,00,000
   B) Rs 20,00,000
   C) Rs 30,00,000
   D) Rs 10,00,000
   
   View answer

   Option A
   Explanation: The aggregate exposure of a lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap of ₹ 50,00,000 provided that such investments of the lenders on P2P platforms are consistent with their net-worth.
10. LCR=[High quality liquid asset amount (HQLA)​/Total net cash flow amount] over a 30-day stress period. LCR stands for?
    A) Liquidity Collateral Ratio
    B) Liquidity Credit Ratio
    C) Liquidity Cost Ratio
    D) Liquidity Coverage Ratio
    
    View answer

    Option D
    Explanation: The liquidity coverage ratio (LCR) refers to the proportion of highly liquid assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations. 

Read More Banking Awareness Topics

Attempt Banking Awareness Quiz