Banking Awareness Quiz

Banking Awareness Quiz – Set 263: 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 mechanism that automates the end-to-end processing of transactions of the financial instruments.
   A) FTP
   B) TREPS
   C) STP
   D) GAH
   
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     Option C
   Explanation: Straight-through Processing (“STP”) is a mechanism that automates the end-to-end processing of transactions of the financial instruments. It involves use of a single system to process or control all elements of the work-flow of a financial transaction, including what is commonly known as the Front, Middle, and Back office, and General Ledger. In other words, STP can be defined as electronically capturing and processing transactions in one pass, from the point of first ‘deal’ to final settlement.
2. The “Inflation Expectations Survey of Households” in India is conducted by?
   A) SEBI
   B) IL&FS
   C) RBI
   D) Ministry of Finance
   
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     Option C
   Explanation: The Reserve Bank’s Inflation Expectations Survey of Households captures near to medium term inflationary sentiments of about 6,000 households across eighteen cities on a bi-monthly basis.
3. _______ is an account where funds are held in trust whilst two or more parties complete a transaction.
   A) TPA
   B) escrow
   C) RIXX
   D) credit account
   
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   Option B
   Explanation: An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction.
4. Alternate Investment Fund is a type of ____________.
   A) government pooled fund
   B) privately pooled fund
   C) SEBI pooled fund
   D) banks pooled funds
   
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   Option B
   Explanation: AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.
5. ________ is the legal record of any transaction carried out on a stock exchange through a stockbroker.
   A) Ledger
   B) Legal note
   C) Transaction note
   D) Contract note
   
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   Option D
   Explanation: Contract note
6. _________ is a market for long-term debt and equity shares.
   A) Money market
   B) Capital market
   C) G-secs market
   D) Auction market
   
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   Option B
   Explanation: Capital market
7. Bond that are issued at a discount and repaid at a face value is known as?
   A) Convertible Bond
   B) Discount Bond
   C) Zero Coupon Bond
   D) Validity bond
   
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   Option C
   Explanation: Zero Coupon Bond
8. __________ is a specialized financial institution that buys the NPAs or bad assets from banks and financial institutions.
   A) AMC
   B) ARC
   C) AFC
   D) IL&FS
   
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   Option B
   Explanation: An Asset Reconstruction Company is a specialized financial institution that buys the NPAs or bad assets from banks and financial institutions so that the latter can clean up their balance sheets.
9. The Reserve Bank of India has identified how many categories under Priority Sector Lending?
   A) 4
   B) 6
   C) 8
   D) 10
   
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   Option C
   Explanation: Agriculture; Micro, Small and Medium Enterprises; Export Credit; Education; Housing; Social Infrastructure; Renewable Energy; and Others
10. What is the authorised capital of the Exim Bank?
    A) Rs. 10,000 Crore
    B) Rs. 20,000 Crore
    C) Rs. 50,000 Crore
    D) Rs. 1,00,000 Crore
    
    View answer

    Option A
    Explanation: The authorised capital of the Exim Bank is Rs. 10,000 Crore.

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