Banking Awareness Quiz
Banking Awareness Quiz – Set 287: 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.
- The opening of new branches and shifting of existing branches of banks is governed by the provisions of which Act?
A) Banking Regulations Act, 1949
B) Reserve Bank of India Act, 1934
C) Payment and Settlement Systems Act, 2007
D) Negotiable Instruments Act, 1881
View answer
Option A
Explanation: Section 23 of the Banking Regulation Act, 1949.
- A ‘Banking Outlet’ is a fixed point service delivery unit, manned by either bank’s staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques/cash withdrawal or lending of money are provided for a minimum of _______ per day for at least ______ a week.
A) 4 hours; six days
B) 4 hours; five days
C) 5 hours; four days
D) 5 hours; five days
View answer
Option B
Explanation: “A ‘Banking Outlet’ is a fixed point service delivery unit, manned by either bank’s staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques/cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at least five days a week. It carries uniform signage with name of the bank and authorisation from it, contact details of the controlling authorities and complaint escalation mechanism.
- Under the Under a “corridor” system, which rate acts as the policy rate by RBI?
A) repo rate
B) reverse repo rate
C) CRR
D) SLR
View answer
Option A
Explanation: Repo is the policy rate
- _______ liquidity refers to the ability of individual institutions to meet their liabilities and other payments needs.
A) funding
B) market
C) central bank
D) All of these
View answer
Option A
Explanation: The Basel Committee on Banking Supervision (BCBS) defines funding liquidity as the ability of banks to meet their liabilities, unwind or settle their positions as they become due. Similarly, the International Monetary Fund (IMF) provides a definition of funding liquidity as the ability of solvent institutions to make agreed upon payments in a timely fashion. Thus, funding liquidity refers to the ability of individual institutions to meet their liabilities and other payments needs.
- _________ refers to the ease with which a financial asset can be converted into cash at short notice, without causing a significant movement in its price.
A) funding
B) market
C) central bank
D) All of these
View answer
Option B
Explanation: Market liquidity, on the other hand, refers to the ease with which a financial asset can be converted into cash at short notice, without causing a significant movement in its price. In general, market liquidity is measured in terms of bid-ask spread, volume and frequency of transactions per unit of time, turnover ratio and price impact of a trade. While funding liquidity is specific to an institution, market liquidity is specific to a market.
- _________ refers to reserves provided by a central bank to the banking system.
A) positive margin
B) demand liquidity
C) system deficit
D) central bank liquidity
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Option D
Explanation: Central Bank Liquidity, refers to reserves provided by a central bank to the banking system. Banks are, in many countries, required to maintain a mandated level of balances in their accounts with the central bank. These balances are referred to as required reserves. If the banking system has less money than the required reserve, which it needs to borrow from the central bank, it is said that the system liquidity is in deficit and vice versa.
- Which of the following acts as the nodal agency for the Digi Dhan mission and hence publishes digital payment data on Digidhan Dashboard?
A) NPCI
B) RBI
C) Ministry of Electronics and Information Technology
D) Ministry of Finance
View answer
Option C
Explanation: Post demonetization, the Ministry of Electronics and Information Technology (MeitY) was made the nodal agency for the Digi Dhan mission, and has commenced publication of transaction volume data through the Digidhan Dashboard. The data elements included are RTGS, NEFT, NACH, IMPS, BHIM UPI, BHIM Aadhaar, NETC, AEPS, Credit Cards, Debit Cards, PPIs, Mobile Banking, Internet Banking, Closed System PPIs and Others
- Which of the following is an effective mechanism to solve the problem of delayed payments and liquidity issues of MSMEs.
A) CERSAI
B) CGTMSE
C) LSP
D) TReDS
View answer
Option D
Explanation: Trade Receivables Discounting System (TReDS)
- What is the loan limit under MUDRA?
A) Rs 50,000
B) Rs 5 lakh
C) Rs 10 lakh
D) Rs 15 lakh
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Option C
Explanation: There are three products under MUDRA- The financial limit for these products are: Shishu : covering loans upto 50,000/-; Kishor : covering loans above 50,000/- and upto 5 lakh; Tarun : covering loans above 5 lakh to 10 lakh
- Priority Sector Lending Scheme is applicable to?
A) Regional Rural Bank (RRB)
B) Local Area Bank
C) Small Finance Bank (SFB)
D) All of these
View answer
Option D
Explanation: Priority Sector Lending Scheme is applicable on Commercial Bank including: Regional Rural Bank (RRB), Small Finance Bank (SFB), Local Area Bank and Primary (Urban) Co-operative Bank (UCB) other than Salary Earners’ Bank
