Quiz on Banking Awareness

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Number of Questions: 10

1. What does LCR stands for?
   A) Liquidity Calculating Regulation
   B) Lending Credit Rate
   C) Low Credit Reserve
   D) Liquidity Coverage Ratio
   
   View answer

   Option D
   Explanation: The liquidity coverage ratio requires banks to hold enough high-quality liquid assets (HQLA) that can be sold to fund banks during a 30-day stress scenario designed by regulators.
2. What is the maximum rate of fund that can be held by Payments Bank in the current and time/fixed deposits of other scheduled commercial banks
   A) 50%
   B) 25%
   C) 75%
   D) 40%
   
   View answer

   Option B
   Explanation: Payments Bank can invest minimum 75 per cent of its “demand deposit balances” in Statutory Liquidity Ratio(SLR) eligible Government securities/treasury bills with maturity up to one year and hold maximum 25 per cent in current and time/fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.
3. Which is the first state of India where all households were provided banking facilities under Financial Inclusion scheme?
   A) Mangalam, Puducherry
   B) Barabati, Cuttack
   C) Dareli, Visakhapatnam
   D) Pasur, Coimbatore
   
   View answer

   Option A
   Explanation: Mangalam, Puducherry became the first village in India where all households were provided banking facilities.
4. The Prevention of Money Laundering Act, 2002 came into force in which year?
   A) July 1, 2002
   B) July 1, 2004
   C) July 1, 2005
   D) July 1, 2003
   
   View answer

   Option C
   
5. The difference between total revenue and total expenditure of the government is termed as _______
   A) Primary Deficit
   B) Depreciation
   C) External Debt
   D) Fiscal Deficit
   
   View answer

   Option D
   
6. The term Brexit refers to the withdrawing of Britain from which group?
   A) OPEC
   B) European Union
   C) NATO
   D) Eurozone
   
   View answer

   Option B
   Explanation: Brexit refers to the possibility of Britain withdrawing from the European Union (EU). 
7. Which among the following is not a type of banking risk?
   A) Security Risk
   B) Interest Rate Risk
   C) Market Risk
   D) Liquidity Risk 
   
   View answer

   Option A
   
8. PCR is a system under which RBI can initiate a corrective action when a bank is found to have high NPAs. Here PCR stands for?
   A) Profit Credit Asset
   B) Payment Control Action
   C) Prompt Corrective Action
   D) Possible Capital Alternative
   
   View answer

   Option C
   
9. Which among the following committees introduced the concept of NARROW BANKING in India?
   A) M. Narasimham Committee
   B) C.Rangarajan Committee
   C) R H Khan Committee
   D) Tarapore Cmmittee
   
   View answer

   Option D
   
10. At least 50 percent of the loan portfolio of the Small Finance Banks should constitute loans upto Rs __________ 
    A) Rs 10 lakh
    B) Rs 25 lakh
    C) Rs 20 lakh
    D) Rs 15 lakh
    
    View answer

    Option B
    

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