Current Affairs PDF

Banking Awareness Quiz Set – 30

By
AC Team 1
-

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

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 initial share capital for RBI was _________
    A. Rs.5 lakh
    B. Rs.5 crores
    C. Rs.50 crores
    D. Rs.1 crore
    B. Rs.5 crores
    Explanation: The Reserve Bank of India was established on April 1, 1935 with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. It was originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.

  2. It offers buyers credit and lines of credit to foreign governments and banks.
    A. PNB
    B. SBI
    C. EXIM Bank
    D. IDBI
    C. EXIM Bank
    Explanation:The Export-Import Bank of India was set up in 1982 with main objective to ensure an approach in solving the allied problems encountered by exporters in India.Recently,Export-Import (Exim) Bank has organised a training programme for women in Rudraprayag district of Uttarakhand to provide sustainable livelihoods to affected families after 2013 floods.

  3. The issuance of direction to housing finance institutions to ensure their growth on sound lines.
    A. HDFC
    B. NHB
    C. ICICI
    D. SBI
    B.NHB
    Explanation:National Housing Bank (NHB), a wholly owned subsidiary of Reserve Bank of India (RBI), was set up in 1987. It is an apex financial institution for housing and commenced its operations in 1988 with an objective to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions. CEO:Sriram Kalyanaraman

  4. The rate of inflation increases when the purchasing power of money___________
    A. Increases
    B. Decreases
    C. Stable
    D. None of these
    B.Decreases
    Explanation:Price inflation decreases people’s ability to pay for goods. If an employee’s wages remain steady, but the cost of goods increases, then the employee can afford less goods. As wage inflation occurs, people will be able to buy more products. Misconception is that when wages rise, prices also rise and there is little support that wage inflations cause price inflation.

  5. Full form of QIB is
    A. Quantitative Institution Board
    B. Qualified Inclusive Board
    C. Qualified Institutional Buyers
    D. Quantified Infrastructure Board
    C.Qualified Institutional Buyers
    Explanation:It is a purchaser of securities that is considered financially sophisticated and is legally identified by securities market regulators to need less protection from issuers than most public investors.

  6. Insurance cover for bank deposits in India is provided by
    A. LIC
    B. GIIC
    C. NICL
    D. DICGC
    D. DICGC
    Explanation:Deposit Insurance is to boost the faith of the public in the banking system, and provide protection against the loss of deposits to a significant extent. In India, the bank deposits are covered under the insurance scheme provided by Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India.

  7. CRR and SLR are related to
    A. Capital Market
    B. Commodities Market
    C. Money Market
    D. None of these
    D. None of these
    Explanation:Banks has to keep a certain percentage of its total deposits with RBI as cash reserves that is CRR. Amount of liquid assets such as precious metals(Gold) or other approved securities, that a financial institution must maintain as reserves other than the cash is SLR.

  8. The following is not a primary function of a bank
    A. Facilitating import of goods
    B. Remittance facility
    C. Safe custody of articles
    D. Foreign Exchange
    A.Facilitating import of goods
    Explanation: Primary functions: Accepting Deposits, Making Advances,credit creation.
    Secondary functions:Funds transfer, Cheques collection, Periodic payments/collection, Portfolio management, Issue of draft, letter of credit etc.,Locker facility, Underwriting of shares, Dealing in foreign exchanges, Project reports, Social welfare programs.

  9. Full form of OLTAS
    A. Online Tax Accounting System
    B. Office Tax Allowing System
    C. Onboard Local Transaction System
    D. None of these
    A.Online Tax Accounting System
    Explanation:OLTAS On-line Tax Accounting System (OLTAS) for Direct Taxes) introduced in April, 2004 for collection, accounting and reporting of the receipts and payments of Direct Taxes on-line through a network of bank branches.

  10. NBFC deposits are _____ and not backed by security.
    A. Insured
    B. Uninsured
    C. Secured
    D. None of these
    B.Uninsured
    Explanation:NBFCs lend and make investments and hence their activities are similar to that of banks however there are a few differences like NBFC cannot accept demand deposits, do not form part of the payment and settlement system and cannot issue cheques drawn on itself, deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.





RELATED ARTICLESMORE FROM AUTHOR