Current Affairs PDF

Banking Awareness Quiz – Set 106

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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. Currency swap is an instrument to manage _______
    A. Interest Rate Risk
    B. Currency Risk
    C. Cash flows in different countries
    D. All of the Above
    E. None of the Above
    C. Cash flows in different countries
    Explanation:
    A currency swap (or a cross currency swap) is a foreign exchange derivative between two institutions to exchange the principal and/or interest payments of a loan in one currency for equivalent amounts, in net present value terms, in another currency.

  2. “Hawala transactions” in India are prohibited under the provision of which of the following acts?
    A. Banking Regulation Act
    B. Financial Action Task Force Act
    C. Foreign Exchange Management Act
    D. All of the Above
    E. None of the above
    C. Foreign Exchange Management Act
    Explanation:
    “Hawala transactions” in India are prohibited under the provision of Foreign Exchange Management Act.

  3. Which of the following refers to an account that a bank holds in a foreign currency in another bank?
    A. Nostro Account
    B. Vostro Account
    C. LORO Account
    D. Mirror Account
    E. None of the Above
    A. Nostro Account
    Explanation:
    Nostro account refers to an account that a bank holds in a foreign currency in another bank.

  4. Local currency account maintained by a local bank for a foreign (correspondent) bank is termed as _________
    A. Nostro Account
    B. Vostro Account
    C. LORO Account
    D. Mirror Account
    E. None of the Above
    B. Vostro Account
    Explanation:
    Local currency account maintained by a local bank for a foreign (correspondent) bank is termed as Vostro Account.

  5. ____is a Current Account Maintained by one Domestic Bank on behalf of other domestic bank in foreign bank in foreign currency
    A. BSBDA
    B. CA
    C. LORO Account
    D. Mirror Account
    E. None of the Above
    C. LORO Account
    Explanation:
    LORO Account is a Current Account Maintained by one Domestic Bank on behalf of other domestic bank in foreign bank in foreign currency.

  6. How many Basic Savings Bank Deposit Account(BSBDA) can be opened by an individual?
    A. One
    B. Two
    C. Three
    D. Four
    E. None of the Above
    A. One
    Explanation:
    An individual is eligible to have only one ‘Basic Savings Bank Deposit Account’ in one bank.

  7. What are the other deposit accounts can be opened by an individual in where one holds ‘Basic Savings Bank Deposit Account’?
    A. Fixed Deposit
    B. Recurring Deposit
    C. Another BSBDA
    D. Both A and B
    E. None of the Above
    D. Both A and B
    Explanation:
    One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds ‘Basic Savings Bank Deposit Account.

  8. Maximum balance in the BSBDA small account should not exceed ______ rupees at any time
    A. 50000
    B. 100000
    C. 200000
    D. 300000
    E. None of the Above
    A. 50000
    Explanation:
    Maximum balance in the BSBDA small account should not exceed fifty thousand rupees at any time.

  9. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in _________
    A. One month
    B. Two month
    C. Three month
    D. All of the Above
    E. None of the Above
    A. One month
    Explanation:
    The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month for BSBDA small accounts.

  10. BSBDA Small accounts are valid for a period of _________
    A. 3 months
    B. 4 months
    C. 12 months
    D. 6 months
    E. None of the Above
    C. 12 months
    Explanation:
    Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.