Banking Awareness Quiz SET – 28

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 not meant for the purpose of investment?
   A. Mutual funds
   B. Infrastructure funds
   C. National Saving certificate
   D. Letter of credit
   E. None of these
   
   Answer & Explanation

   D. Letter of credit
   Explanation: It is a document issued by a third party that guarantees payment for goods/services when the seller provides acceptable documentation and are issued by banks or other financial institutions. 
   
   
2. First Indian bank to open overseas branch?
   A. Bank of India
   B. Punjab National Bank
   C. Bank of Baroda
   D. Bank of India
   E. None of these
   
   Answer & Explanation

   D. Bank of India
   Explanation: Bank of India HQ- Mumbai, CEO & MD- M O Rego. 
   
   
3. ECS stand for
   A. External Commercial System
   B. Electronic Clearing System
   C. Electronic Commercial System
   D. Electrical Clearing Service
   E. Electronic Clearing Service
   
   Answer & Explanation

   E. Electronic Clearing Service
   Explanation: It allows companies, Government departments and institutions which have to make bulk payments in the form of dividend warrants and interest payments on bonds to investors to transfer the proceeds electronically to customers’ bank accounts.
   
   
4. Conversion of physical form of share into electronic form is called
   A. Demat
   B. Exchange
   C. Materialization
   D. None of these
   E. Clearance
   
   Answer & Explanation

   A. Demat
   Explanation: Demat stands for Dematerialisation and is the process of converting physical financial instruments such as share certificates, mutual fund investments, and bonds into electronic form.
   
   
5. Which of the following is not correctly matched?
   A. ICICI-1956
   B. IDBI- 1964
   C. IFCI- 1948
   D. SIDBI- 1988
   E. None of these
   
   Answer & Explanation

   D. SIDBI- 1988
   Explanation: Small Industries Development Bank of India is an independent financial institution to aid the growth and development of micro, small and medium-scale enterprises in India and is founded in April 2, 1990. CEO of SIDBI is Dr. Kshatrapati Shivaji
   
   
6. FINO stands for
   A. Final Inclusion Network & operation
   B. Finance Investment Network operation
   C. Financial Inclusion Network Operation
   D. Foreign Investment Network Operation
   E. None of these
   
   Answer & Explanation

   C. Financial Inclusion Network Operation
   Explanation: Financial Inclusion Network & Operation
   
   
7. Nationalization of banks took place in India in how many phases?
   A. 2
   B. 1
   C. 3
   D. 4
   E. None of these
   
   Answer & Explanation

   A. 2
   Explanation: In 1969 and 1980
   
   
8. A closed economy is
   A. Only Exports take place
   B. Only Imports take place
   C. Imports and exports take place
   D. Neither Imports nor Exports take place
   E. None of these
   
   Answer & Explanation

   D. Neither Imports nor Exports take place
   Explanation: A closed economy means no imports are brought in and no exports are sent out so as to provide consumers with everything that they need from within the economy’s borders.
   
   
9. Who carry out open market operations?
   A. SEBI
   B. SIDBI
   C. RBI
   D. NABARD
   E. None of these
   
   Answer & Explanation

   C. RBI
   Explanation: RBI carries out open market operations. Open market operation is in which a country will conduct trade with outside regions.
   
   
10. Purpose of setting up Narsimhan committee-2?
    A. Efficiency and productivity
    B. Banking reform process
    C. Export of IT sector
    D. Fiscal Reform process
    E. None of these
    
    Answer & Explanation

    B. Banking reform process
    Explanation: In 1998 to analyze India’s banking sector and recommending legislation and regulations to make it more effective, competitive and efficient.issued by banks or other financial institutions.