Banking Awareness Quiz

Banking Awareness Quiz – Set 261: 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. _________ is a framework under which banks with weak financial metrics are put under watch by the RBI.
   A) RWA
   B) PCA
   C) FSDC
   D) RFA
   
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     Option B
   Explanation: Prompt Corrective Action (PCA)
2. Which of the following concept was introduced in Basel III norm to ensure that banks build up a capital buffer outside periods of financial stress that can be drawn down when banks face financial (systemic or idiosyncratic) stress?
   A) CCAR
   B) RWA
   C) P/E Ratio
   D) CCB
   
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     Option D
   Explanation: capital conservation buffer (CCB)
3. Reserve Bank of India introduced the PCA framework in which year?
   A) 2001
   B) 2002
   C) 2004
   D) 2005
   
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   Option B
   Explanation: The Reserve Bank’s PCA framework was introduced in December 2002
4. Provisioning Coverage Ratio (PCR) is the ratio of provisioning to __________.
   A) NPA
   B) Liabilities
   C) NDTL
   D) Structured Assets
   
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   Option A
   Explanation: Provisioning Coverage Ratio (PCR) is the ratio of provisioning to gross non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses.
5. Centre for Advanced Financial Research and Learning (CAFRAL) has been setup by?
   A) SEBI
   B) Ministry of Finance
   C) RBI
   D) IRDAI
   
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   Option C
   Explanation: CAFRAL is an independent body set up by the Reserve Bank of India (RBI) in the backdrop of India’s evolving role in the global economy, in the financial services sector and its position in various international fora, and to develop into a world class global institution for research and learning in banking and finance.
6. Which of the following refers to an accounting practice that involves adjusting the value of an asset to reflect its value as determined by current market conditions.
   A) MtM
   B) bpl
   C) pfe
   D) tfs
   
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   Option A
   Explanation: Mark to market is an accounting method that values an asset to its current market level.
7. NPCI was formed with how many core promotor banks?
   A) 8
   B) 10
   C) 12
   D) 16
   
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   Option B
   Explanation: The RBI facilitated the establishment of the NPCI in 2008 with 10 core promoter banks
8. In a ‘BSBDA-Small Account’, balance at any point of time does not exceed __________.
   A) Rs 1,00,000
   B) Rs 50,000
   C) Rs 2,00,000
   D) Rs 25,000
   
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   Option B
   Explanation: The balance at any point of time does not exceed Rs 50,000.
9. A bank is permitted to issue PSLCs upto ________ of previous year’s PSL achievement.
   A) 10%
   B) 25%
   C) 40%
   D) 50%
   
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   Option D
   Explanation: A bank is permitted to issue PSLCs upto 50 percent of previous year’s PSL achievement.
10. Which of the following payments system works on Deferred Net Settlement (DNS) basis?
    A) RTGS
    B) IMPS
    C) UPI
    D) NEFT
    
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    Option D
    Explanation: NEFT system operates in batches of half hour interval. It operates on Deferred Net Settlement (DNS) basis which settles transactions in batches.

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