Banking Awareness Quiz

Banking Awareness Quiz – Set 280: These questions on Banking Awareness 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. Which organization is responsible for the refinancing of agriculture and rural development in India?
   A) RBI
   B) NABARD
   C) SIDBI
   D) SEBI
   
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     Option B
   Explanation: National Bank for Agriculture and Rural Development is an apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India.
2. Who manages the Foreign Exchange Reserves in India?
   A) Reserve Bank of India
   B) SEBI
   C) Ministry of Finance
   D) SBI
   
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     Option A
   Explanation: RBI
3. The activities undertaken by banks apart from their normal functioning is termed as?
   A) general banking
   B) para banking
   C) neo banking
   D) active banking
   
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   Option B
   Explanation: Para banking activities are undertaken by a bank apart from its day-to-day activities like deposits, withdrawals, etc.
4. Which of the following is not a part of the Small Savings Scheme of Government?
   A) PPF
   B) NSC
   C) NPS
   D) KVP
   
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   Option C
   Explanation: National Pension Scheme
5. National Pension Scheme (NPS) is regulated by?
   A) IRDAI
   B) SEBI
   C) RBI
   D) PFRDA
   
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   Option D
   Explanation: It is administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
6. Which institution has been set up for promoting exports in India by providing Credit Risk Insurance?
   A) EXIM Bank
   B) SIDBI
   C) IRDAI
   D) ECGC
   
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   Option D
   Explanation: ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by the Government of India, was set up in 1957 with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports.
7. Which of the following rate remains unaffected due to a change in repo rate?
   A) Reverse Repo Rate
   B) Bank Rate
   C) MSF
   D) SLR
   
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   Option D
   Explanation: See our chapter on RBI rates for explanation.
8. __________ is interim financing for an individual or business until permanent financing or the next stage of financing is obtained.
   A) Mortgage
   B) Refinancing
   C) Bridge loan
   D) LTV
   
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   Option C
   Explanation: A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.
9. Which organization provides insurance to banks for the funds deposited by its customers?
   A) IRDAI
   B) RBI
   C) DICGC
   D) All of these
   
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   Option C
   Explanation: DICGC
10. Which of the following deposits is not insured by DICGC?
    A) Deposits in a current account
    B) Deposits in a recurring account
    C) Deposits in a fixed account
    D) Deposits of central/state government
    
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    Option D
    Explanation: DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits: Deposits of foreign Governments; Deposits of Central/State Governments; Inter-bank deposits; Deposits of the State Land Development Banks with the State co-operative banks; Any amount due on account of and deposit received outside India Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.

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