Banking Awareness Quiz

Banking Awareness Quiz – Set 295: This post contains Banking Awareness Quiz for Banking and Insurance exams like IBPS PO/Clerk, SBI PO/Clerk, RBI Assistant/ GRADE B, NABARD, RRB PO/Clerk, NIACL, NICL and LIC AAO/Assistant etc. These Banking Awareness sets will guide you in all upcoming banking and insurance exams.

1. Which of the following account type is the most common one and allows a person to deposit money and withdraw funds according to the depositor’s convenience?
   A) Current Account
   B) Saving Account
   C) Fixed Deposit
   D) Recurring Deposit
   
   View answer

   Option B
   Explanation: The most common account having the lowest interest rate is savings account as the account allows to deposit money and withdrawal of funds according to the convenience of the depositors. The number of transactions under this account is capped.
2. Name the account which is designed to facilitate the transactions for the business merchants, traders, entrepreneurs, etc.
   A) DEMAT Account
   B) Loro Account
   C) Savings Account
   D) Current Account
   
   View answer

   Option D
   Explanation: A current account is designed to facilitate the transactions for the business merchants, traders, entrepreneurs, etc. This account is also known as financial account. This account allows the individual to carry out an unlimited number of transactions on a daily basis. It holds more liquid deposits with no limit of regular transaction.
3. ______________ a financial market that works as a conduit for demand and supply of debt and equity capital.
   A) Business Account
   B) Capital Market Account
   C) Checking Accounts
   D) Deposit Accounts
   
   View answer

   Option B
   Explanation: Capital Market is a market where buyers and sellers engage in trade of the financial securities such as stocks, bonds and many more. This buying and selling of the securities is undertaken by the participants like individuals and institutions.
4. Which term is referred to the account which neither be converted nor gets repatriated into foreign currency?
   A) NRO Account
   B) NRE Account
   C) Loro Account
   D) Demat Account
   
   View answer

   Option A
   Explanation: The NRO account is also known as Non-Resident Ordinary Rupee. This account may be opened or maintained in the form of current account or saving account or recurring or fixed deposit accounts. Any person living outside India can open NRO account with an authorized dealer or a bank for the purpose of putting through bonafide transaction in rupees. This account cannot be converted and repatriated into foreign currency.
5. Under BSBD account there is no minimum balance is required to maintain the account and there is no limitations on age and income criteria of the customer to open the account. What is the full form of the BSBDA?
   A) Basic Saving and Bank Deposit Access
   B) Basic Saving and Bank Demand Account
   C) Broad Saving and Bank Deposit Account
   D) Basic Saving and Bank Deposit Account
   
   View answer

   Option D
   Explanation: The full form of BSBDA is Basic Savings Bank Deposit Accounts (BSBDA). There is no requirement of minimum balance. There is an upper limit to the monetary balance.Especially available for the economically weaker sections. Only one BSBDA account in one bank is permitted.No limitations on age and income criteria of the customer.
6. Which of the following bank account offers the overdraft facility?
   A) Saving account
   B) Current account
   C) Both A and B
   D) Recurring Deposit Account
   
   View answer

   Option B
   Explanation: In current account overdraft facility is available.
7. Which of the following feature is allowed in fixed deposit account:
   A) When a certain amount of money is locked in for a given period of time and an interest is paid on quarterly basis until the FD matures.
   B) Converting the money deposits in the account to Indian Rupees at prevailing exchange rates.
   C) When a certain amount of money is locked in for a given period of time and an interest is paid until the FD gets matured.
   D) Both C And B
   
   View answer

   Option C
   Explanation: A Fixed Deposit Account (FD) allows customers to earn a fixed interest rate to keep a certain amount of money locked in a particular time, that.
8. What is the maturity period of an RD?
   A) 3 months to 12 years
   B) 1 month to 10 years
   C) 6 months to 10 years
   D)6 months to 15 years
   
   View answer

   Option C
   Explanation: The maturity period of an RD account is between 6 months to 10 years.
9. Under which bank account Cash withdrawals and transfers should not exceed Rs.10.000/- within one month?
   A) BSBDA
   B) BSBDS
   C) DEMAT Account
   D) NRO Account
   
   View answer

   Option B
   Explanation: In Basic Saving bank Deposit Accounts Small scheme (BSBDS) Cash withdrawals and transfers cannot exceed Rs.10, 000/- in a month.
10. Which of the following does not belong to the types of savings account?
    A) Deposit Account
    B) Money Market Account
    C) Certificate of Deposit
    D) Vostro Account
    
    View answer

    Option D
    Explanation: Vostro Account is owned and operated in India by foreign banks in Indian rupees.

Read Banking Awareness Topics

Attempt Banking Awareness Quiz