Banking Awareness Quiz – Set 101

Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. Which of the following is the clearing agency for Government securities?
   A. RBI
   B. GOI
   C. CCIL
   D. SEBI
   E. None of the Above
   
   Answer & Explanation

   C. CCIL
   Explanation:
   The CCIL is the clearing agency for Government securities. It acts as a Central Counter Party (CCP) for all transactions in Government securities by interposing itself between two counter parties.
   
   
2. _______ is used for electronic dealing and reporting of transactions in government securities
   A. Delivery versus Payment (DvP)
   B. Negotiated Dealing System (NDS)
   C. Risk Mitigation
   D. All of the Above
   E. None of the Above
   
   Answer & Explanation

   B. Negotiated Dealing System (NDS)
   Explanation:
   The Negotiated Dealing System (NDS) for electronic dealing and reporting of transactions in government securities was introduced in February 2002.It facilitates the members to submit electronically, bids or applications for primary issuance of Government Securities when auctions are conducted.
   
   
3. Which of the following is the mode of settlement of securities wherein the transfer of securities and funds happen simultaneously?
   A. Delivery versus Payment (DvP)
   B. Duration
   C. Convexity
   D. All of the Above
   E. None of the Above
   
   Answer & Explanation

   A. Delivery versus Payment (DvP)
   Explanation:
   Delivery versus Payment (DvP) is the mode of settlement of securities wherein the transfer of securities and funds happen simultaneously. This ensures that unless the funds are paid, the securities are not delivered and vice versa. DvP settlement eliminates the settlement risk in transactions.
   
   
4. The monetary ceiling of amount for settlement through Lok Adalat is _________
   A. 5 lakh
   B. 10 lakh
   C. 15 lakh
   D. 20 lakh
   E. None of the Above
   
   Answer & Explanation

   D. 20 lakh
   Explanation:
   The monetary ceiling of amount for settlement through Lok Adalat is INR 20 Lakh
   
   
5. An EEFC account can be held only in the form of a ________
   A. Current Account
   B. Savings Bank Account
   C. loan Account
   D. All of the Above
   E. None of the Above
   
   Answer & Explanation

   A. Current Account
   Explanation:
   An EEFC(Exchange Earners’ Foreign Currency Account) account can be held only in the form of a current account. No interest is payable on EEFC accounts.
   
   
6. Reserve Bank of India has made it mandatory on the banks to discontinue the practice of stapling the currency note packets under _______ of the Banking Regulation Act, 1949
   A. Section 35A
   B. Section 25A
   C. Section 15A
   D. Section 30A
   E. None of the Above
   
   Answer & Explanation

   A. Section 35A
   Explanation:
   The Reserve Bank of India has made it mandatory on the banks to discontinue the practice of stapling the currency note packets. It has issued a directive to banks under Section 35A of the Banking Regulation Act, 1949.
   
   
7. “Islamic Banking” the term used for _______
   A. Covering Banking to Islamic nation
   B. prohibition of the collection and payment of interest
   C. Sharing of Profit and loss
   D. Both (A) and (B)
   E. Both (B) and (C)
   
   Answer & Explanation

   E. Both (B) and (C)
   Explanation:
   Two basic principles behind Islamic banking are the sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest by lenders and investors. Collecting interest is not permitted under Islamic law.
   
   
8. The first Indian RRB that has achieved Core Banking Solution(CBS) is ________
   A. Rushikulya Gramya Bank (RGB)
   B. Pallavan Bank
   C. Bangiya Gramin Vikash Bank
   D. Allahabad UP Gramin Bank
   E. None of the Above
   
   Answer & Explanation

   A. Rushikulya Gramya Bank (RGB)
   Explanation:
   The Rushikulya Gramya Bank (RGB), a regional rural bank (RRB) operating in south Orissa, has become the first RRB in the state to have placed all its branches on the Core Banking Solutions (CBS) platform.
   
   
9. Government of India closed ______ and established National Company Law Tribunal and National Company Law Appellate Tribunal.
   A. IIFCL
   B. BIFR
   C. SICA
   D. Both (A) and (C)
   E. None of the Above
   
   Answer & Explanation

   B. BIFR
   Explanation:
   The Sick Industrial Companies (Special Provisions) Repeal Act, 2003 replaced SICA and sought to dissolve the BIFR and the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), replacing them by the NCLT and NCLAT. The Board for Industrial and Financial Reconstruction(BIFR), an agency of GOI was established under The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
   
   
10. RBI can inspect the branches of Banks under _______ of the Banking Regulation Act, 1949
    A. Section 35
    B. Section 25
    C. Section 15
    D. Section 30
    E. None of the Above
    
    Answer & Explanation

    A. Section 35
    Explanation:
    RBI can inspect the branches of Banks under section 35 of the Banking Regulation Act, 1949