Banking Awareness Quiz

1. The New Capital Adequacy Frame work prescribed for the banks is commonly known as?
a) KYC norms
b) Credit Policy
c) Basel accord
d) Fiscal Policy
e) None of these

2. Expand the term FRBM?
a) Financial Responsibility and Business management
b) Fiscal Responsibility and Business management
c) Financial Responsibility and Budget Management
d) Fiscal Responsibility and Budget Management
e) Formal Responsibility and Business Management

3. What is an Indian Depository Receipt?
a) A deposit account with a Public Sector Bank
b) A depository account with any of depositories
c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
d) An instrument in the form of deposit receipt issued by Indian depositories
e) None of these

4. Which of the following banks is limited to the needs of agriculture and rural finance?
a) RBI
b) SBI
c) IFC
e) Axis Bank

5. Open-market operations of Reserve Bank of India refer to?
a) Trading in securities
b) Auctioning
c) Transaction in gold
d) All of these
e) None of these

6. Which of the following has introduced a new tool named Data Warehousing and Business Intelligence System for speedy analysis of data and identification of violations?
b) SBI
c) RBI
e) None of these

7. The Reserve Bank hiked the limit for foreign investment in Asset Reconstruction Companies (ARCs) from the earlier cap of 49 percent to?
a) 74 %
b) 47 %
c) 57 %
d) 72 %
e) None of the above

8. What is 'Packing Credit'?
a) Finance extended to packing materials industry
b) Finance extended to an Importer to pack the goods imported
c) Finance extended to Warehouses for keeping the goods packages
d) Finance extended to an Exporter to meet the costs of buying and/ or making products to be exported
e) None of the above

9. What is NOT true with regard to Currency Chests in India?
a) They are managed by different banks on behalf of RBI
b) Deposits in Currency Chests are taken into account for calculation of CRR (Cash Reserve Ratio)
c) Standard Chartered Bank a Foreign Bank also maintains Currency Chest
d) Coins are also stored in Currency Chests
e) None of the above

10. What is 'Net Interest Margin' of a Bank?
a) Margin of Interest earned on Trading in Govt Securities
b) Difference between the Base Interest Rate and the Average Lending Rate
c) Difference between the interest income and the amount of interest paid out
d) Difference between Interest on Term Loans and Interest on Cash Credits
e) None of the above

1) c
2) d
3) c
4) d
5) a
6) b
7) a
8). d
9). e
10). c