Quiz on Banking Awareness

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Number of Questions: 10

1. High worth individuals who provide seed capital for start-ups in return for a minority share in business are known as________.
   A) Personal Investor
   B) Angel Investor 
   C) Peer-to-peer lenders
   D) None of These
   
   View answer

   Option B
   Explanation: They are also known as Business Angel or simply Angel.
2. CAR is the ratio of a bank’s capital to its risk. What does A stands for in CAR?
   A) Adjustment
   B) Asset
   C) Adequacy
   D) Alternative
   
   View answer

   Option C
   Explanation: Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR) is the ratio of a bank’s capital to its risk.
3. How many financial institutions are sponsors to UTI Mutual Fund?
   A) 4
   B) 2
   C) 1
   D) 5
   
   View answer

   Option A
   Explanation: UTI Mutual Fund is promoted by the four of the largest Public Sector Financial Institutions as sponsors, viz., State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank with each of them holding a 18.24% stake in the paid up capital of UTI AMC.
4. What is the loan limit for education in India under priority sector?
   A) Rs 25 lakh
   B) Rs 15 lakh
   C) Rs 20 lakh
   D) Rs 10 lakh
   
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   Option D
   Explanation: Education loans include loans and advances granted to only individuals for educational purposes up to Rs. 10 lakh for studies in India and Rs. 20 lakh for studies abroad, and do not include those granted to institutions;
5. The United Nations Industrial Development Organisation (UNIDO) is headquartered at____________
   A) Rome
   B) Paris
   C) Vienna
   D) New York
   
   View answer

   Option C
   
6. What does Section 20 of the RBI Act 1934 defines?
   A) Only RBI has the exclusive rights to issue currency notes in India
   B) RBI as Banker to Government
   C) Allows RBI to form rules regarding the exchange of damaged and imperfect notes. 
   D) Emergency loans to banks
   
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   Option B
   
7. An Individual can open how many ‘Basic Savings Bank Deposit Account’ in one bank?
   A) One
   B) Two
   C) Three
   D) No Limit
   
   View answer

   Option A
   Explanation: An individual is eligible to have only one ‘Basic Savings Bank Deposit Account’ in one bank.
8. Banks can accept interest free deposits in which type of accounts?
   A) Savings Account
   B) Term Deposit Account
   C) Current Account
   D) All the above
   
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   Option C
   
9. What is the minimum maturity period prescribed for the Commercial Paper?
   A) 30 days
   B) 1 day
   C) 14 days
   D) 7 days
   
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   Option D
   Explanation: CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.However,the maturity date of the CP should not go beyond the date up to which the credit rating of the issuer is valid.
10. ADF seeks to ensure submission of correct and consistent data from the banks straight from their systems to Reserve Bank without any manual intervention. What is ADF?
    A) Authentic Data Flow
    B) Automated Data Flow 
    C) Authorized Data Flow
    D) Accurate Data Flow
    
    View answer

    Option B
    

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