Banking Awareness Quiz – Set 153

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. ________ is an account maintained in foreign currency with an Authorised Dealer Category – I bank.
   A. FCNR
   B. Current Account
   C. SB Account
   D. EEFC
   E. None of these
   
   Answer & Explanation

   D. EEFC
   Explanation:
   Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank.
   
   
2. A bank authorized to deal in foreign exchange is known as _____
   A. Category – I bank
   B. Category – II bank
   C. Category – III bank
   D. All of these
   E. None of these
   
   Answer & Explanation

   A. Category – I bank
   Explanation:
   A bank authorized to deal in foreign exchange is known as Authorized Dealer Category I Bank.
   
   
3. EEFC is a facility provided to the foreign exchange earners, including exporters, to credit ____ of their foreign exchange earnings to the account.
   A. 75%
   B. 90%
   C. 80%
   D. 100%
   E. None of these
   
   Answer & Explanation

   D. 100%
   Explanation:
   EEFC is a facility provided to the foreign exchange earners, including exporters, to credit 100% of their foreign exchange earnings to the account.
   
   
4. An EEFC account can be held only in the form of a ______
   A. FCNR
   B. Current Account
   C. SB Account
   D. EEFC
   E. None of these
   
   Answer & Explanation

   B. Current Account
   Explanation:
   An EEFC account can be held only in the form of a Current Account.
   
   
5. EEFC account can offer _______ of Interest
   A. 3%
   B. 8%
   C. 10%
   D. 6%
   E. No Interest
   
   Answer & Explanation

   E. No Interest
   Explanation:
   No interest is payable on EEFC accounts.
   
   
6. SEZ Units cannot open ________
   A. Fixed Deposit
   B. Current Account
   C. SB Account
   D. EEFC
   E. None of these
   
   Answer & Explanation

   D. EEFC
   Explanation:
   SEZ Units cannot open EEFC Accounts
   
   
7. Which of the following facility is available for operation of the EEFC account?
   A. DD
   B. Cheque
   C. RD
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. Cheque
   Explanation:
   Cheque facility is available for operation of the EEFC account.
   
   
8. SEZ stands for _____
   A. Special Environment Zone
   B. Super Economic Zone
   C. Super Environment Zone
   D. Special Economic Zone
   E. None of these
   
   Answer & Explanation

   D. Special Economic Zone
   Explanation:
   Special Economic Zone.
   
   
9. What is the maximum restriction on withdrawal in rupees of funds held in an EEFC account?
   A. 1 lakh
   B. 2 lakh
   C. 3 lakh
   D. 5 lakh
   E. No Restriction
   
   Answer & Explanation

   E. No Restriction
   Explanation:
   No restriction on withdrawal in Rupees of funds held in an EEFC account.
   
   
10. In _______ account, the amount withdrawn in Rupees shall not be eligible for conversion into foreign currency.
    A. FCNR
    B. Current Account
    C. SB Account
    D. EEFC
    E. None of these
    
    Answer & Explanation

    D. EEFC
    Explanation:
    The amount withdrawn in Rupees shall not be eligible for conversion into foreign currency and for re-credit to the account.