Brilliance College- Thrissur

BRILLIANCE COLLEGE-THRISSUR

BANKING AWARENESS

MONTHLY TEST PAPER - 17

Time: 15 Minute Mark: 50

1) When a Bank provides a loan for purchase of white goods, it is categorised as-?

(a) Consumption loan(b) White Goods loan(c) Consumer Durable Loan(d) Working Capital

(e) None of the given options is true

2) Fixed Deposits and Recurring Deposits are-

(a) repayable after an agreed period(b) repayable on demand(c) not repayable

(d) repayable on demand or after an agreed period as per bank’s choice

(e) None of the given options is true

3) What is the full form of ‘FSDC’ which is used in financial sectors?

(a) Financial Security and Development Council(b) Financial Stability and Development Council

(e) None of the given options is true

4) CRAR stands for……………….

(a) Capital to Risk-Weighted Assets Ratio(b) Capital to Risk Assets Ratio

(e) None of the given options is true

5) Which among the following are long term corporate bonds that are unsecured in nature?

(a) DCF(b) Debentures(c) Covenant(d) CRAs(e) Cheque

6) An account for which a bank acts as an uninterested third party is termed as?

(a) Savings Account(b) Current Account(c) Reserve Account(d) Escrow Account

(e) Fixed Account

7) Which of the following is defined as the difference between current assets and current liabilities?

(a) Venture Capital(b) Working Capital(c) Equitable Mortgage(d) Loss Assets

(e) Profit and Loss Account

8) A debt which is irrecoverable and is therefore written off as loss in the accounts of an institution or bank is known as…………….

(a) external debt (b) good debt(c) bad debt(d) internal debt

(e) None of the given options is true

9) ………………… is basically charged when a person uses a credit card to obtain cash.

(a) Early Repayment Charge(b) Redemption Fee(c) Transaction Fee(d) Cash Advance Fee

(e) None of the given options is true

10) Which is an interest-free period that is to be given by a creditor to the debtor?

(a) Fixed Period(b) Present Period(c) Grace Period(d) All of the Above

(e) None of the given options is true

11) ………….. is a cheque rather an amount of cheque, which is above the balance available in the account of the payer.

(a) Travellers cheque(b) Multicity Cheque (c) Mutilated Cheque(d) Over Draft

(e) Bad Debts

12) Which of the following is not a measure of the Risk Management in Banks?

(a) CRR(b) RTGS(c) SLR(d) Deposit Insurance(e) None of the given options is true

13) Cash kept in the currency chest is owned by-
(a) Currency Chest branch bank(b) State Bank of India(c) Central Government

(d) Reserve Bank of India(e) Finance Ministry

14) When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as……………..
(a) Consortium(b) Syndication(c) Multiple Banking(d) Participation

(e) None of the given options is true

15) What is the minimum amount of deposit into/withdrawal from currency chest?
(a) Rs.5, 00,000 (b) Rs.1, 50,000(c) Rs.2, 00,000(d) Rs.3, 00,000(e) Rs.1, 00,000

16) Standard Chartered Bank is headquartered at

a) Germanyb) Finlandc) USAd) UKe) None of these

17) What is the maximum period for which a term deposit can be normally opened?
(a) 8 years(b) 7 years(c) 9 years(d) 10 years(e) 12 years

18) DICGC guarantees amount up to……………..per depositor per bank.
(a) Rs.1, 00,000(b) Rs.1, 50,000 (c) Rs.2, 00,000 (d) Rs.3, 00,000

(e) None of the given options is true

19) Which of the following institutions do not hold a banking license?
(a) Small Banks(b) Foreign Banks(c) Commercial Banks(d) NBFCs(e) Private Banks

20) What is the full form of FATCA?
(a) Forex Account Tax Compliance Act(b) Foreign Account Tax Compliance Act

21) What is the minimum initial deposit required for opening a Basic Savings Bank Deposit Account (BSBDA)?
(a) Rs 500(b) Rs 1000(c) Rs 100(d) No initial deposit(e) Rs 200

22) Who among the following decides the volume and value of bank notes to be printed in India?
(a) RBI(b) SBI(c) Security Printing and Minting Corporation of India
(d) All of the Above(e) None of the given options is true

23) In which of the following fund transfer mechanisms, can funds be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
(a) RTGS(b) NEFT(c) TT(d) EFT(e) None of the given options is true

24) Which of the following is the rate of interest paid by bond issuers on the bond’s face value?

a) Coupon Rateb) Interest Ratec) Bank Rated) Bond ratee) Credit rate

25) Who is the MD of International Monetary Fund?

a) Yukia Amanob) Arjun Bahadurc) Christine Lagarde d) Irina Bokova

e) Roberto Azevedo

26) A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as ……………..
(a) SWIFT(b) Basel(c) RTGS(d) NEFT(e) AIIB

27) With reference to a cheque which of the following is the ‘drawee bank’?
(a) The bank that collects the cheque(b) The payee’s bank (c) The endorser’s bank
(d) The bank upon which the cheque is drawn(e) None of the given options is true

28) The concept of insuring deposits kept with banks received attention for the first time in the year…………….. after the banking crises in Bengal.

29) The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961, and the Deposit Insurance Act, 1961 came into force on January 01st-

30) The Reserve Bank of India was promoted a public limited company on January 14th, 1971, named the CGCI. What was the meaning of "C" in CGCI?

(a) Common(b) Conclusion(c) Corporation(d) Concept(e) Credit

31) The DIC Bill was introduced in the Parliament on August 21st, 1961. What is the meaning of "D" in DIC?

(a) Distance(b) Development(c) Deposit(d) Demand(e) None of the above

32) Open market operations of a Central Bank are sale and purchase of:

a) foreign currenciesb) corporate securitiesc) trade billsd) government securities

(e) None of the above

33) DICGC stands for-

(a) Deposit Investment and Credit Guarantee Corporation

(b) Deposit Insurance and Credit Guarantee Corporation

(d) Demand Insurance and Credit Guarantee Corporation

(e) Deposit Installment and Credit Guarantee Corporation

34) What is money?

a) The currency that works as currencyb) A currency which contains universal acceptance

c) Currency which is measuring the value and means of paymentd) All of the above e) None

35) As per the data released by Asian Development Bank (ADB), the Indian economy will grow…………per cent this fiscal year.

a) 7.0%b) 7.2%c) 7.6%d) 7.5%e) 7.4%

36) DICGC was came into existence on-

(a) 15th July 1949(b) 15th July 1961(c) 15th July 1982(d) 15th July 1972

(e) 15th July 1978

37) The authorised capital of the DICGC is 50 crore, which is fully issued and subscribed by-

(a) Government of India(b) SIDBI(c) NABARD(d) RBI(e) SEBI

38) Which type of Banks is covered under Deposit Insurance (DICGC) Scheme?

(a) All commercial banks including the branches of foreign banks functioning in India

(b) Local Area Banks (c) Regional Rural Banks(d) All of the above(e) None of the above

39) Initially (Before 1968), under the provisions of Section 16(1) of the DICGC Act, the insurance cover was limited to ………….only per depositor(s) for deposits held by him (them) in the "same right and in the same capacity" in all the branches of the bank taken together.

(a) Rs 1500(b) Rs 2500(c) Rs 10000(d) Rs 50000(e) Rs 100

40) Who is the present chairman of DICGC?

(a) Harsh Kumar Bhanwala(b) SS Mundra(c) NS Vishwanathan(d) R Gandhi(e) Ajay Tyagi

41) Basel III capital regulations are being implemented in India with effect from—-?

a) 1 April , 2013b) 1 April , 2019c) 31 March, 2013d) 31 March, 2019e) None of the above

42) Which of the following is not e-banking software?

(a) ECS(b) RTGS(c) PIPS(d) NEFT(e) M-Banking

43) RBI has announced which denomination note recently that will be printed in pink color?
(a) Re 1(b) Rs 2(c) Rs 5(d) Rs 10(e) None of these

44) Crossing on a cheque can be cancelled by the …………….of the cheque, under his full signature.

a) Payee b) Drawee c) endorser d) holder e) drawer

45) Assume that Reserve Bank of India reduces the Bank Rate by 1%, what will be its impact?

a) less liquidity in the market b) more liquidity in the market c) no change in the liquidity in the market

d) mobilization of more deposits by commercial-banks e) none of these

46) Under MSME Act 2006 the investment limit for micro enterprise in manufacturing sector is-

a) Below Rs. 10 lakhb) Below Rs. 25 lakhc) Rs. 55 lakhd) Rs. 120 croree) Rs. 60 Lakhs

47) Which of the following is not a ‘Money Market Instrument’?
(a) Treasury Bills(b) Commercial Paper(c) Certificate of Deposit

(d) Equity Shares(e) None of the given options is true

48) When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called ……………..

(a) Income Deficit(b) Fiscal Deficit(c) Budgetary Deficit(d) All of the Above

(e) None of the given options is true

49) Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfillment of its terms and conditions. What is this arrangement known in banking context?
(a) Line of Credit(b) Loan to Client (c) Loan on Credit(d) Letter of Credit

(e) None of the given options is true

50) A cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder’s signature is known as…………….

(a) Travellers cheque(b) Multicity Cheque(c) Mutilated Cheque(d) Crossed Cheque

(e) None of the given options is true