Banking Awareness Quiz Set-1

Dear Readers, Banking Awareness Questions play important role in Banking exams. Around 50-60% of questions come from Banking Awareness which includes recent Banking updates also.

Try to Answer Banking Awareness questions given in this post. We will provide you more questions in next post.

1. What does amortization mean?
A. Spreading payments over multiple periods
B. Buying a financial instrument in order to sell the same instrument at a higher price in another market
C. Issuance approval,by a credit card issuer
D. Buying the underlying securities at a specified excercise price
E. None of the Above

2. What is the duration of Public Provident Fund (PPF) account?
A. 3 years
B. 5 years
C. 9 years
D. 15 years
E. 18 years

3. Under which Act are the KYC norms implemented?
A. SEBI Act 1992
B. Foreign Contribution and Regulation Act, 1976
C. Prevention of Money laundering Act 2002
D. Banking Regulation Act, 1949
E. Both (C) and (D)

4. When a customer deposits cheque to a bank, the bank is a(n)
A. Drawer
B. Agent
C. Principal
D. Drawee
E. Bailee

5. Which of the following is a receipt, declaring ownership of shares of a foreign company. which can be listed in India and traded in rupees?
E. None of the Above

6. What is the term for a bank without any branch network that offers its services remotely?
A. Internet only Banks
B. Direct Bank
C. Lending Institution
D. Indirect Bank
E. Online Bank

7. Derivatives contract which gives the buyer/holder of the contract the right(but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period is known as
A. Futures contract
B. Option Contract
C. Index Futures contract
D. Mini Derivative contract
E. None of the Above

8. For expanding access to banking services, the RBI has advised banks to open branches with minimum infrastructure support of 8 to 10BC units at a reasonable 3-4km. Such branches are known as _______
A. White Label ATMs
B. Ultra Small Branches
C. Banking Kiosks
D. CBS Terminals
E. ICT Hubs

9. According to the Income Tax act of 1961, the age of Super senior Citizens should be _______
A. 60 years
B. 70 years
C. 80 years
D. 75 years
E. 65 years

10. Part of company’s earning or profit which is paid out to share holders is known as _______
A. Premium
B. Dividend
C. Bonus
D. Sum Assured
E. Return