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

1. The MICR Code is a _________ digit numeric code that uniquely identifies a bank-branch participating in the ECS Credit scheme
   A) 11
   B) 12
   C) 9
   D) 8
   
   View answer

   Option C
   Explanation: MICR is an acronym for Magnetic Ink Character Recognition. The MICR Code is a numeric code that uniquely identifies a bank-branch participating in the ECS Credit scheme. This is a 9 digit code to identify the location of the bank branch; the first 3 characters represent the city, the next 3 the bank and the last 3 the branch. 
2. Under the Indo-Nepal Remittance Facility Scheme, the number of remittances by Indian originator is restricted to____________ per year
   A) 9
   B) 12
   C) 15
   D) 20
   
   View answer

   Option B
   Explanation: An originator in India is allowed to remit a maximum of 12 remittances in a year under the scheme.
3.  A bank account established in a foreign country usually in the currency of that country for the purpose of carrying out transactions there is known as___________
   A) Nostro Account
   B) Loro Account
   C) Vostro Account
   D) Correspondent Account
   
   View answer

   Option A
4. UTR is a 22 character code used to uniquely identify a transaction in RTGS system. What does UTR stands for?
   A) Unique Transaction Receipt
   B) Unique Transaction Record
   C) Unique Transaction Reference
   D) Unique Transaction Return
   
   View answer

   Option C
   Explanation: Unique Transaction Reference (UTR) number is a 22 character code used to uniquely identify a transaction in RTGS system.
5. Prepaid Payment Instruments (PPIs) that can be issued in India is classified into how many types?
   A) 1
   B) 4
   C) 2
   D) 3
   
   View answer

   Option D
   Explanation: PPIs that can be issued in the country are classified under three types viz. (i) Closed System PPIs, (ii) Semi-closed System PPIs, and (iii) Open System PPIs.
6. How many NBFC Ombudsman have been appointed till date by RBI?
   A) 4
   B) 3
   C) 7
   D) 5
   
   View answer

   Option A
   Explanation: As on date, four NBFC Ombudsman have been appointed with their offices located at Chennai, Kolkata, New Delhi and Mumbai.
7. Gilt edged securities is an another term used for___________
   A) State Development Loans
   B) G-Secs
   C) Cash Management Bills
   D) Treasury Bills
   
   View answer

   Option B
   Explanation:G-Secs are also known as gilts or gilt edged securities. “G-Sec” means a security created and issued by the Government for the purpose of raising a public loan or for any other purpose as may be notified by the Government in the Official Gazette and having one of the forms mentioned in the G-Secs Act, 2006
8. Which of the following statements is not true about the Treasury Bills (T-bills)?
   A) T-bills are money market instruments
   B) They are issued in three tenors, namely, 91 day, 182 day and 364 day
   C) They are short term debt instruments
   D) It is issued by the Reserve Bank of India
   
   View answer

   Option D
   Explanation:Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. 
9. What is the rate of interest applicable on Sovereign Gold Bond?
   A) 2 %
   B) 1.50 %
   C) 2.50 %
   D) 3 %
   
   View answer

   Option C
   Explanation: The gold bonds pay interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest is credited semi-annually to the bank account of the investor and the last interest payout will be on maturity along with the principal.
10.  FCCB is a type of corporate bond issued by an Indian company in an overseas market in a currency different from that of the issuer. What is FCCB?
    A) Foreign Currency Convertible Bond
    B) Foreign Currency Convertible Bank
    C) Foreign Convertible Currency Bond
    D) Foreign Convertible Currency Bank
    
    View answer

    Option A
    Explanation: foreign currency convertible bond (FCCB)

Read More Banking Awareness Topics

Attempt Banking Awareness Quiz