Banking Awareness Quiz – Set 228

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. Interest that has been earned but not yet paid is known as ________.
   A) Realised Interest
   B) Accrued Interest
   C) Open Interest
   D) Zero Coupon Interest
   
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     Option B
   Explanation: Accrued Interest
2. Contracts that guarantee regular income, in exchange for a lump sum or periodic payment is known as?
   A) Insurance
   B) SIP
   C) Mutual Funds
   D) Annuity
   
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     Option D
   Explanation: Annuity
3. __________ is the simultaneous purchase and sale of two identical commodities or instruments to take advantage of price variations in different markets.
   A) arbitrage
   B) appraisal
   C) adjustment
   D) arrear
   
   View answer

   Option A
   Explanation: arbitrage
4. A ________ is a type of loan that includes lower monthly payments in exchange for a larger one-time payment at the end of your loan term.
   A) personal loan
   B) amortized loan
   C) balloon loan
   D) extra payment loan
   
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   Option C
   Explanation: A loan for which the final payment, larger than all of the previous, regularly scheduled payments, is due in a lump sum before the loan is fully amortized.
5. Basis point is a unit for measurement of ___________.
   A) NPA
   B) interest rate
   C) GDP ratio
   D) quick ratio
   
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   Option B
   Explanation: One hundred basis points equal one percent.
6. What is the term used for the maximum interest rate that a firm can pay from available cash flow and still have enough cash flow to make all required principal and interest payments.
   A) Optional interest rate
   B) Gross interest rate
   C) Progressive interest rate
   D) Break-even interest rate
   
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   Option D
   Explanation: Break-even interest rate
7. Which of the following metric is used to determine the rate of return on real estate.
   A) cap rate
   B) red rate
   C) real rate
   D) gross rate
   
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   Option A
   Explanation: The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value
8. The simultaneous exchange of securities and cash is known as?
   A) SSC
   B) DVP
   C) SVP
   D) SSV
   
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   Option B
   Explanation: Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been made.
9. Part of a corporation’s profits that are distributed to shareholders is known as?
   A) Division
   B) ESOP
   C) Dividend
   D) Dominion
   
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   Option C
   Explanation: Dividend
10. Bank credit to registered NBFCs for on-lending to micro and small enterprises up to _________ per borrower are eligible for classification as priority sector lending.
    A) ₹ 10 lakh
    B) ₹ 20 lakh
    C) ₹ 30 lakh
    D) ₹ 50 lakh
    
    View answer

    Option B
    Explanation: Rs 20 lakhs

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