Banking Awareness Quiz

Banking Awareness Quiz – Set 264: 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 used by the banks to meet their temporary requirement of cash mainly overnight.
   A) Commercial Paper
   B) Call Money
   C) Certificate of Deposit
   D) T-bills
   
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     Option B
   Explanation: Call Money is mainly used by the banks to meet their temporary requirement of cash mainly overnight. Participants borrow and lend money from each other without any collateral.
2. “Handbook of Statistics on the Indian Economy” is published annually by?
   A) Ministry of Finance
   B) CARE Ratings
   C) Reserve Bank of India
   D) SEBI
   
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     Option C
   Explanation: Recetly RBI has released Handbook of Statistics on the Indian Economy 2019-20
3. ________ is the value of a country’s currency in terms of a foreign currency.
   A) Forex Market
   B) Coupons
   C) Dated Securities
   D) Exchange Rate
   
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   Option D
   Explanation: Exchange Rate is the value of a country’s currency in terms of a foreign currency. In a free market economy, the exchange rate is determined by the demand for and supply of foreign exchange
4. What percent stake does RBI owns in NCFE?
   A) 10%
   B) 20%
   C) 30%
   D) 40%
   
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   Option C
   Explanation: NCFE= 30% RBI + 30% SEBI + 30% IRDAI + 10% PFRDA out of Rs 100 Crore
5. Cash Management Bills (CMBs) are issued for flexible tenures less than _________
   A) 10 days
   B) 91 days
   C) 365 days
   D) 2 years
   
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   Option B
   Explanation: less than 91 days
6. Which of the following instrument derives its value entirely from the value of the underlying asset?
   A) Derivatives
   B) Equity
   C) T-bills
   D) Hedge
   
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   Option A
   Explanation: The term “Derivative” indicates that it has no independent value, i.e. it derives its value entirely from the value of the underlying asset
7. Who is the head of Financial Intelligence Unit – India (FIU-IND)?
   A) Governor of RBI
   B) Deputy Governor of RBI
   C) Prime Minister of India
   D) Finance Minister of India
   
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   Option D
   Explanation: FIU-IND is an independent body to report directly to the Economic Intelligence Council headed by the Finance Minister.
8. ________ is a phenomenon of financial institutions terminating business relationships with clients to avoid or manage risk.
   A) De-risking
   B) Risking
   C) De-linking
   D) Linking
   
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   Option A
   Explanation: De-risking
9. _________ refers to money that leaves the country though various channels and makes its way back into the country often as foreign investment.
   A) KYC
   B) Round tripping
   C) Sanctions
   D) Reverse money laundering
   
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   Option B
   Explanation: Round-tripping is the process where funds are returned after being transferred to an entity, shell company, financial instruments, location, or a person that have lower regulatory standards or obligations – giving the impression that the funds have derived from a clean source and thus completing a round trip.
10. What is the full form of VASP?
    A) Value Added Service Provider
    B) Virtual Asset Service Provider
    C) Valued And Systematic Provider
    D) Value And Software Provider
    
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    Option B
    Explanation: Virtual Asset Service Provider

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