BANKING AND FINANCE QUIZ - 4

Welcome to your BANKING AND FINANCE QUIZ - 5

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Name

Email ID

Contact No.

Which of the following is correct regarding the Statutory Liquidity ratio (SLR)?

It restricts commercial bank's leverage in pumping more money in to the economy

It is maintained only in the form of cash

It controls liquidity in banking system

It does not ensure the solvency of commercial banks

None

Which of the following is not correct regarding the Cheque Truncation System (CTS) In India?

It speeds up the process of collection of cheques

It reduces the scope for cheque clearing-related frauds

Truncation of cheques is yet to be legalized

It lowers the cost of collection of cheques

None

Bank rate refers to:

The rate at which banks lend to its prime borrowers

The maximum rate that banks can pay for deposit

The rate at which banks rediscount bills with RBI

None of these

None

The full form of IFSC is:

Indian Financial System Code

Instant Fund for System Change

Internet Foreign Sales Code

Indian Foreign Service Compliance

None

Which of the following statements sum up the features of a Debit Card?

It is a plastic payment card

Payments using a debit card are immediately transferred from the cardholders designated bank account

The debit card transactions are routed through the Visa or Master Card networks

All of the above

None

What does ALM stand for in the banking industry?

Application Lifecycle Management

Asset Liability Management

Application for Loan Management

Asset Loss Management

None

Which of the following has the authority to appoint Banking Ombudsman in India?

SEBI

RBI

NABARD

CHI

None

The system of cheque clearing and settlement between banks based on electronic data/ images or both without physical exchange of instrument is known as:

Cheque Truncation

Cheque Embossing

Cheque Standardization

Cheque Digitalization

None

Which of the following authorities instructs a bank that funds held on behalf of a debtor should not be released until directed by it?

Reserve Bank of India

Banking Ombudsman

Court

Union Ministry of Finance

None

10.

What is the liability of the Banker in Case of Wrongful Dishonor of Cheques?

He is liable to compensate the customer for the loss suffered by him

He is not liable to compensate the customer for the loss

He can transfer the matter to the customer Grievance Redressal Department

Both the customer and the banker have to split the compensation in the ratio of 50:50

None

11.

Foreign Exchange Reserves in India are maintained and managed by

SEBI

RBI

IRDA

Planning Commission

None

12.

In the field of banking sector, what is the full form of ECS?

E-Commerce Service

Entity component system

Embodied cognitive science

Electronic Clearing Service

None

13.

Which of the following bodies/organizations responsible for the inspection, supervision surveillance of Regional Rural Banks (RRBs)?

NABARD

SEBI

RBI

IRDA

None

14.

Which of the following bodies is responsible for maintaining the Cash Reserve Ratio?

All scheduled commercial banks

All Private Banks

Regional Rural Banks

Non-Banking Financial Companies

None

15.

According to a recent Reserve Bank's Instructions on banking matters, banks cannot accept Interest free deposits other than in -

Demand deposit account

Term deposit account

Current account

None of these

None

16.

What does 'D' stand for in DBT?

Direct

Debit

Devaluation

Depreciated

None

17.

Which policy of the Reserve Bank of India does not deal in fixing Interest rates?

Monetary Policy

Expansionary policy

Contractionary policy

Credit Policy

None

18.

A cheque which bears the word 'Not Negotiable' between the two parallel lines is considered as a:

Uncrossed cheque

Truncated cheque

Valid cheque

Crossed cheque

None

19.

Which of the following, in the banking sector, measures the ability of a company to meet its short term debt obligations?

Current ratio

Acid test ratio

Cash ratio

All of the above

None

20.

Which of the following is/are traditional type of open market operations used by the Reserve Bank of India?

Outright purchase

Repurchase agreement (REPO)

Both (a) and (b)

None of these

None

21.

Banks are required to maintain secrecy and confidentiality of customers' accounts under:

Indian Contract Act, 1872

Banker's Book Evidence 1891

Consumer Protection Act. 1986

Banking Regulation Act, 1949

None

22.

Which of the following is NOT one of the major functions of the National Bank for Agricultural and Rural Development (NABARD)?

Acting as a regulator for cooperative banks and RRB

Extending assistance to the government and others in matters relating to rural development

Providing refinance to lending institution in rural areas

Review of monetary and credit policy

None

23.

Savings Bank Interest is calculated on the basis of:

Minimum available balance

Banks liquidity

Profitability preferences of a bank

Daily balance method

None

24.

What is the full form of the term DEPB in banking?

Developmental Enterprises Promotion Board

Duty Entitlement Pass Book

Duty Enforcement and Promotion Board

Development, Export and Procurement Bureau

None

25.

Which of the following Acts helps a bank in its day to day activities?

Competition Act

Negotiable Instruments Act

Hindu Marriage Act

Hindu Succession Act

None

Time's up

Time is Up!

BANKING AND FINANCE QUIZ – 4

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