Banking Awareness Quiz – Set 114

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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. What is the full form of RNBC?
   A. Reserve Non-Banking Company
   B. Reverse Non-Banking Company
   C. Residential Non-Banking Company
   D. Rural Non-Banking Company
   E. Residuary Non-Banking Company
   
   Answer & Explanation

   E. Residuary Non-Banking Company
   Explanation:
   Residuary Non-Banking Companies(RNBCs) is one of the categories of NBFCs whose principal business is acceptance of deposits and investing in approved securities.
   
   
2. RNBCs should offer a rate of interest of not less than ____ per annum on term deposits
   A. 5%
   B. 4%
   C. 6%
   D. 7%
   E. None of these
   
   Answer & Explanation

   A. 5%
   Explanation:
   RNBCs should offer a rate of interest of not less than 5% per annum on term deposits
   
   
3. RNBCs should offer a rate of interest of ______ on daily deposits.
   A. 5.5%
   B. 3.4%
   C. 4.6%
   D. 3.7%
   E. 3.5%
   
   Answer & Explanation

   E. 3.5%
   Explanation:
   RNBCs should offer a rate of interest of 3.5% on daily deposits.
   
   
4. RNBCs cannot accept deposits for a period less than ____ months and more than ____ months.
   A. 12, 60
   B. 12, 72
   C. 24, 72
   D. 12, 84
   E. 24, 84
   
   Answer & Explanation

   D. 12, 84
   Explanation:
   RNBCs cannot accept deposits for a period less than 12 months and more than 84 months.
   
   
5. Which of the following is an electronic trading platform, operated by the Reserve Bank of India, used to facilitate the exchange of government securities and other money market instruments?
   A. Payment and Settlements System
   B. Sachet
   C. Negotiated Dealing System
   D. All of these
   E. None of these
   
   Answer & Explanation

   C. Negotiated Dealing System
   Explanation:
   Negotiated Dealing System(NDS) is an electronic trading platform, operated by the Reserve Bank of India, used to facilitate the exchange of government securities and other money market instruments.
   
   
6. Which of the following was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets?
   A. SHCIL
   B. SEBI
   C. CIBIL
   D. CCIL
   E. All of these
   
   Answer & Explanation

   D. CCIL
   Explanation:
   The Clearing Corporation of India Ltd. (CCIL) was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets.
   
   
7. What types of trades are settled through CCIL?
   A. Treasury Bills
   B. Central Government Securities
   C. State Government Securities
   D. STRIPS
   E. All of these
   
   Answer & Explanation

   E. All of these
   Explanation:
   Treasury Bills
   Central Government Securities
   State Government Securities
   STRIPS
   
   
8. ________ refers to the period during which no settlements are permitted in a security.
   A. Short Period
   B. Long Period
   C. Closed Period
   D. Shut Period
   E. None of these
   
   Answer & Explanation

   D. Shut Period
   Explanation:
   Shut period refers to the period during which no settlements are permitted in a security.
   
   
9. CBLO Stands for _________
   A. Collective Borrowing and Lending Obligation
   B. Collateralized Borrowing and Lending Organization
   C. Collective Borrowers and Lenders Obligation
   D. Collateralized Borrowing and Lending Obligation
   E.  Collective Borrowers and Lenders Organization
   
   Answer & Explanation

   D. Collateralized Borrowing and Lending Obligation
   Explanation:
   Collateralized Borrowing and Lending Obligation(CBLO) facilitates in a collateralized environment, borrowing and lending of funds to market participants who are admitted as members in CBLO Segment.
   
   
   
10. What is the mode of settlement through CCIL? 
    A. Delivery Versus Payment
    B. Payment Versus Payment
    C. Payment Versus Delivery
    D. Payment and Settlement
    E. All of these
    
    Answer & Explanation

    B. Payment Versus Payment
    Explanation:
    CCIL adopts the Payment versus payment mode of Settlement.