Quiz on Banking Awareness
Banking Awareness forms an important part of Bank exams. Study our Banking Awareness topics to excel in Bank exams. Quiz on Banking Awareness for upcoming exams
Number of Questions: 10
- A Saving account or Current account is classified as ‘Inoperative’ or ‘Dormant’ if there are no transactions in the account for over a period of ___ years.
A) 9 months
B) 1 year
C) 1.5 years
D) 2 years
View answer
Option D
Explanation: RBI has stipulated that a saving/current account will be classified as a inoperative/dormant if there is no operation in the account for over a period of two years. Interest credited by the bank on the balance in the account and any charges debited by the bank is nit considered as transaction for this purpose.
- Which one of the following is an order to pay money?
A) Cheque
B) Promissory note
C) Bills of exchange
D) A and C
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Option D
Explanation: Cheque and Bill of Exchange both the instruments contain an unconditional order to pay a certain sum of money to the person whose name is mentioned in the document.
- In which of the following credit rating of CRISIL, it is considered that the instrument in this credit rating are in default or expected to be in default soon?
A) AAA
B) BB
C) C
D) D
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Option D
Explanation: Credit ratings-
AAA-Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
AA –Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
A –Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
BBB –Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
BB –Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
B –Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
C –Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
D –Instruments with this rating are in default or are expected to be in default soon.
- EEFC Account stands for –
A) Exchange Earner’s foreign currency A/c
B) Export Earner’s foreign currency A/c
C) Exchange Earner’s forward currency A/c
D) None of the above
View answer
Option A
Explanation: Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency. It is a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.
- FIMMDA is an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance companies. What does the letter ‘D’ stands for in FIMMDA?
A) Debenture
B) Derivatives
C) Debt
D) Dividend
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Option B
Explanation: The Fixed Income Money Market & Derivatives Association of India (FIMMDA)
- Which type of money market instrument is a short term debt instrument issued by Government of India and are presently issued in three tenors?
A) Commercial Paper
B) Call Money
C) Notice Money
D) Treasury Bills
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Option D
Explanation: Treasury Bills are short term (up to one year) borrowing instruments of the Government of India which enable investors to park their short term surplus funds while reducing their market risk. They are auctioned by Reserve Bank of India at regular intervals and issued at a discount to face value. Treasury bills are presently issued in three maturities, 91 day / 182 day / 364 day.
- Which of the following acts lets banks and other financial institutions of India to auction commercial or residential properties for the purpose of loan recovery or specially framed to deal NPA problems?
A) Banking Regulation Act
B) SARFAESI Act
C) Prevention of Money Laundering Act
D) Foreign Exchange Management Act
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Option B
Explanation: Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, was made to identify and rectify the problem of Non-Performing Assets (NPAs).
- Collateralized Borrowings & Lending Obligation (CBLO) is a type of money market instrument operated by which of the following?
A) RBI
B) NPCI
C) CCIL
D) INFINET
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Option C
Explanation:The Collateralized Borrowing & Lending Obligation (CBLO) market is a money market segment operated by the Clearing Corporation of India Ltd. (CCIL)
- In 2010, Government of India, in consultation with RBI introduced a new short term instrument to meet the temporary mismatch in cash flow of the Government of India. The name of this money market instrument is ___ ?
A) Cash Management Bills (CMB)
B) Bankers acceptance
C) Municipal notes
D) Federal funds
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Option A
Explanation:
- Treasury bills are sold in India which of the following –
A) Government of India
B) Commercial Banks
C) Reserve Bank of India
D) The Securities and Exchange Board of India
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Option C
Explanation: Treasury bills are issued by Government of India and sold by Reserve Bank of India to banks.
