Banking Awareness Quiz – Set 151

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. The customers will be issued _______ on the date of issuance of the SGB
   A. Certificate of Holding
   B. Certificate of Deposit
   C. Commercial Paper
   D. All of these
   E. None of these
   
   Answer & Explanation

   A. Certificate of Holding
   Explanation:
   The customers will be issued Certificate of Holding on the date of issuance of the SGB.
   
   
2. These securities are eligible to be used as ______ for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC).
   A. Certificate of Holding
   B. Collateral
   C. Commercial Paper
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. Collateral
   Explanation:
   These securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC).
   
   
3. In SGBs, The _______ will be the same as applicable to ordinary gold loan prescribed by RBI from time to time.
   A. Non-Performing Asset ratio
   B. Loan to Value ratio
   C. Capital Adequacy ratio
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. Loan to Value ratio
   Explanation:
   In SGBs, The Loan to Value ratio will be the same as applicable to ordinary gold loan prescribed by RBI from time to time.
   
   
4. Which of the following will qualify for SLR?
   A. Certificate of Deposits
   B. SGBs
   C. Commercial Paper
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. SGBs
   Explanation:
   SGBs will qualify for SLR.
   
   
5. Interest on the Bonds will be taxable as per the provisions of the _______
   A. Income-tax Act, 1951
   B. Income-tax Act, 1961
   C. Income-tax Act, 1971
   D. Income-tax Act, 1981
   E. None of these
   
   Answer & Explanation

   B. Income-tax Act, 1961
   Explanation:
   Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961.
   
   
6. The bonds can also be sold and transferred as per provisions of _______
   A. Government Securities Regulations, 2007
   B. Government Securities Act, 2006
   C. Government Securities Act, 2005
   D. Government Securities Regulations, 2004
   E. None of these
   
   Answer & Explanation

   B. Government Securities Act, 2006
   Explanation:
   The bonds can also be sold and transferred as per provisions of Government Securities Act, 2006.
   
   
7. A short-term borrowing means borrowing of tenor up to but less than ______ year.
   A. One
   B. Two
   C. Three
   D. Four
   E. None of these
   
   Answer & Explanation

   A. One
   Explanation:
   A short-term borrowing means borrowing of tenor up to but less than one year.
   
   
8. ________is a channel to receive cross-border remittances from overseas jurisdictions.
   A. Rupee Drawing Arrangement
   B. Money Transfer Service Scheme
   C. Bond Ledger Account
   D. All of these
   E. None of these
   
   Answer & Explanation

   A. Rupee Drawing Arrangement
   Explanation:
   Rupee Drawing Arrangement is a channel to receive cross-border remittances from overseas jurisdictions.
   
   
9. ________ is a way of transferring personal remittances from abroad to beneficiaries in India.
   A. Rupee Drawing Arrangement
   B. Money Transfer Service Scheme
   C. Bond Ledger Account
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. Money Transfer Service Scheme
   Explanation:
   Money Transfer Service Scheme is a way of transferring personal remittances from abroad to beneficiaries in India.
   
   
10. In RDA, what is the upper limit for trade related transactions?
    A. Rs. 5 lakh
    B. Rs. 10 lakh
    C. Rs. 15 lakh
    D. Rs. 20 lakh
    E. None of these
    
    Answer & Explanation

    C. Rs. 15 lakh
    Explanation:
    In Rupee Draw Arrangement(RDA) Rs. 15 lakh is the upper limit for trade related transactions.