Quiz on Banking Awareness

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Number of Questions: 10

1. For an unauthorised Electronic Payment Transactions in Prepaid Payment Instruments (PPIs), the liability of the customers will be zero, in case of third-party breach, if he customer reports of unauthorised transaction to the PPI issuer within___________ days
   A) 14 days
   B) 7 days
   C) 3 days
   D) 1 day
   
   View answer

   Option C
   Explanation: Under new norms on customer liability, frauds due to third-party breach where neither the customer nor the PPI issuer is at fault, there cannot be any liability for the customer, in case the incident in reported within three days. If the fraud is reported between three and seven days, customer liability will amount to the transaction value or ₹10,000, whichever is lower.For over seven days, the liability of the customer will be according to the board-approved policy of the PPI issuer.
2. The Bandhan Bank Ltd is based in Kolkata. Who is the Chairman of the bank?
   A) S. S. Mundra
   B) Usha Thorat
   C) R. Gandhi
   D) Harun Rashid Khan
   
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   Option D
3. India was the second country in the world to introduce Deposit Insurance Scheme. Which was the first country to do so?
   A) United States
   B) France
   C) China
   D) Germany
   
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   Option A
   Explanation: Deposit insurance was introduced in India in 1962. India was the second country in the world to introduce such a scheme – the first being the United States in 1933.
4. IRS is a derivative contract between two parties wherein one party will make payment at an initial agreed fixed rate while other will pay back at floating rate. What does S stands for in IRS?
   A) service
   B) swap
   C) switch
   D) security
   
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   Option B
   Explanation: An interest rate swap (IRS) is a derivative contract, agreed between two counterparties, whereby one party will make payments to the other based on an initially agreed fixed rate of interest, to receive back payments based on a floating interest rate index.
   
5. The Foreign Exchange Management Act, 1999 (FEMA) was passed to replace which act?
   A) Foreign Exchange Regulation Act, 1965 (FERA)
   B) Foreign Exchange Regulation Act, 1990 (FERA)
   C) Foreign Exchange Regulation Act, 1982 (FERA) 
   D) Foreign Exchange Regulation Act, 1973 (FERA) 
   
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   Option D
6. Stock Holding Corporation of India Limited is India’s largest custodian and depository participant. Its headquarter is based in_____________
   A) New Delhi
   B) Hyderabad
   C) Mumbai
   D) Noida
   
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   Option C 
7. SDR are supplementary foreign-exchange reserve assets defined and maintained by the International Monetary Fund. The full form of SDR is_________
   A) Securities Drawing Rights
   B) Special Drawing Rights
   C) Supplementary Drawing Rights
   D) Savings Drawing Rights
   
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   Option B
8. The Legal Entity Identifier (LEI) is a _____________character, alpha-numeric code.
   A) 12
   B) 15
   C) 10
   D) 20
   
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   Option D
9. Which of the following was set up by the RBI to introduce mechanised cheque processing and the national clearing of cheques.
   A) National Clearing Cell 
   B) Asian Clearing Union
   C) National Credit Council 
   D) National Planning and Credit Cell
   
   View answer

   Option A
   Explanation:National Clearing Cell (NCC) set up in Nov 1983 
10. How many banks were made the subsidiaries of the State Bank of India (SBI) in 1959?
    A) 3
    B) 5
    C) 8
    D) 9
    
    View answer

    Option C
    Explanation: State Bank of India (Subsidiary Banks) Act, 1959 made the banks of the erstwhile Princely Sates of India the subsidiaries of the State Bank of India. These were The Bank of Bikaner, The Bank of Jaipur, The Bank of Indore. The Bank of Mysore, The Bank of Patiala, The Bank of Hyderabad, The Bank of Saurashtra and The Bank of Travancore were made subsidiaries of The State Bank of India. The Bank of Bikaner and The Bank of Jaipur were amalgamated in 1963 to form the State Bank of Bikaner and Jaipur.

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