Banking Awareness Quiz – Set 201

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. Which of the following is the headquarters of Bank for International Settlements?
   A. Italy
   B. Germany
   C. Switzerland
   D. USA
   E. None of these
   
   Answer & Explanation

   C. Switzerland 
   Explanation:
   The headquarters of Bank for International Settlements is Basel, Switzerland.
   
   
2. The SLR is commonly used to control ______
   A. Deflation
   B. Inflation
   C. Credit Growth
   D. Both (A) and (B)
   E. Both (B) and (C)
   
   Answer & Explanation

   E. Both (B) and (C)
   Explanation:
   The SLR is commonly used to control Inflation and regulates the credit growth
   
   
3. The minimum limit(Earlier Limit) of SLR is ______
   A. 20%
   B. 25%
   C. 35%
   D. 40%
   E. None of these
   
   Answer & Explanation

   B. 25%
   Explanation:
   The minimum limit(Earlier Limit) of SLR is 25%
   
   
4. Following the amendment of the Banking regulation Act(1949) in January 2017, the floor rate of SLR ______ was removed.
   A. 20.25
   B. 20.50
   C. 20.75
   D. 21.25
   E. None of these
   
   Answer & Explanation

   C. 20.75
   Explanation:
   Following the amendment of the Banking regulation Act(1949) in January 2017, the floor rate of SLR 20.75 was removed.
   
   
5. Which of the following is determined by a percentage of total demand and time liabilities?
   A. CRR
   B. SLR
   C. MBS
   D. MCLR
   E. None of these
   
   Answer & Explanation

   B. SLR
   Explanation:
   SLR is determined by a percentage of total demand and time liabilities.
   
   
6. If any Indian bank fails to maintain the required level of SLR, then it becomes liable to pay penalty to _______.
   A. Finance Ministry
   B. Bank Board Bureau
   C. GOI
   D. RBI
   E. None of these
   
   Answer & Explanation

   D. RBI 
   Explanation:
   If any Indian bank fails to maintain the required level of SLR, then it becomes liable to pay penalty to Reserve Bank of India
   
   
7. Which of the following is an example of Demand Liability?
   A. Fixed Deposit
   B. Current Account
   C. Savings Account
   D. Both (A) and (B)
   E. Both (C) and (B)
   
   Answer & Explanation

   E. Both (C) and (B)
   Explanation:
   Example of demand liability is a deposit maintained in saving account or current account that is payable on demand through a withdrawal form such as a cheque.
   
   
8. Which of the following is an example of Time Liability?
   A. Fixed Deposit
   B. Current Account
   C. Savings Account
   D. All of these
   E. None of these
   
   Answer & Explanation

   A. Fixed Deposit
   Explanation:
   Example of time liability is a six month fixed deposit which is not payable on demand but only after six months.
   
   
9. If any Indian bank fails to maintain the required level of SLR, then the defaulter bank pays penal interest at the rate of ______ per annum above the Bank Rate on the shortfall amount for that particular day.
   A. 4%
   B. 5%
   C. 3%
   D. 2%
   E. 6%
   
   Answer & Explanation

   C. 3%
   Explanation:
   If any Indian bank fails to maintain the required level of Statutory Liquidity Ratio, then the defaulter bank pays penal interest at the rate of 3% per annum above the Bank Rate, on the shortfall amount for that particular day
   
   
10. If the defaulter bank continues to default on the next working day, then the rate of penal interest can be increased to _____ per annum above the Bank Rate
    A. 4%
    B. 5%
    C. 3%
    D. 2%
    E. 6%
    
    Answer & Explanation

    B. 5%
    Explanation:
    If the defaulter bank continues to default on the next working day, then the rate of penal interest can be increased to 5% per annum above the Bank Rate.