Banking Awareness Quiz – Set 133

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. An account is considered inactive or unclaimed when there is no transaction through it for more than _____
   A. 12 months
   B. 6 months
   C. 18 months
   D. 24 months
   E. None of these
   
   Answer & Explanation

   A. 12 months
   Explanation:
   An account is considered inactive or unclaimed when there is no transaction through it for more than 12 months.
   
   
2. An account is considered dormant when there is no transaction through it for more than _____
   A. 12 months
   B. 6 months
   C. 18 months
   D. 24 months
   E. None of these
   
   Answer & Explanation

   D. 24 months
   Explanation:
   An account is considered inactive or unclaimed when there is no transaction through it for more than 24 months.
   
   
3. An Agreement to exchange one currency with another, at a specific rate of exchange is known as _____
   A. Currency Swap
   B. ECB
   C. Base Rate
   D. Bank Rate
   E. None of these
   
   Answer & Explanation

   A. Currency Swap
   Explanation:
   An Agreement to exchange one currency with another, at a specific rate of exchange is known as Currency Swap.
   
   
4. Which of the following is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs?
   A. Currency Swap
   B. ECB
   C. Base Rate
   D. Bank Rate
   E. None of these
   
   Answer & Explanation

   B. ECB
   Explanation:
   External Commercial Borrowing(ECB) is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs.
   
   
5. Which of the following defines “Promissory Notes”?
   A. Negotiable Instrument Act–1881
   B. Banking Regulation Act –1949
   C. Credit Information Companies (Rules & Regulation) Act–2005
   D. The State Financial Corporations Act–1951
   E. None of these
   
   Answer & Explanation

   A. Negotiable Instrument Act–1881
   Explanation:
   Section 4 – Promissory note
   A “promissory note” is an instrument containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.
   
   
6. The term “Bill of exchange” is defined under _____
   A. Section 6 – Negotiable Instrument Act–1881
   B. Section 5(b) – Banking Regulation Act –1949
   C. Section 6 – Credit Information Companies (Rules & Regulation) Act–2005
   D. Section 5 – Negotiable Instrument Act–1881
   E. None of these
   
   Answer & Explanation

   D. Section 5 – Negotiable Instrument Act–1881
   Explanation:
   Section 5 – Negotiable Instrument Act–1881: A “bill of exchange” is an instrument containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
   
   
7. The term “Cheque” is defined under _____
   A. Section 6 – Negotiable Instrument Act–1881
   B. Section 5(b) – Banking Regulation Act –1949
   C. Section 6 – Credit Information Companies (Rules & Regulation) Act–2005
   D. Section 5 – Negotiable Instrument Act–1881
   E. None of these
   
   Answer & Explanation

   A. Section 6 – Negotiable Instrument Act–1881
   Explanation:
   The term “Cheque” is defined under Section 6 of the Negotiable Instrument Act–1881
   
   
8. The ____ of Banking Regulation Act, 1949 deals with “Reserve Fund”
   A. Section 16
   B. Section 17
   C. Section 18
   D. Section 19
   E. Section 22
   
   Answer & Explanation

   B. Section 17
   Explanation:
   The Section 17 of Banking Regulation Act, 1949 deals with “Reserve Fund”
   
   
9. Which of the following section of Banking Regulation Act, 1949 deals with “Cash Reserve”?
   A. Section 16
   B. Section 17
   C. Section 18
   D. Section 19
   E. Section 22
   
   Answer & Explanation

   C. Section 18
   Explanation:
   The Section 18 of Banking Regulation Act, 1949 deals with “Cash Reserve”
   
   
10. Which of the following section of Banking Regulation Act, 1949 deals with licensing of banking companies?
    A. Section 16
    B. Section 17
    C. Section 18
    D. Section 19
    E. Section 22
    
    Answer & Explanation

    E. Section 22
    Explanation:
    The Section 22 of Banking Regulation Act, 1949 deals with licensing of banking companies.