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Banking Awareness Quiz Set – 32

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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. Scheduled banks are listed on which schedule of the Reserve Bank of India Act 1934?
      A. First
      B. Second
      C. Third
      D. None of these
      B. Second
      Explanation: A scheduled bank is a bank which is listed in the 2nd Schedule of the Reserve Bank of India Act, 1934. Banks not under this Schedule are called non-scheduled banks. Scheduled banks comprised of private, foreign and nationalised banks operating in India. A scheduled bank is eligible for loans from the Reserve Bank of India at bank rate.

    2. Maximum note printable by RBI are
      A. Rs.5000
      B. Rs.1000
      C. Rs.10000
      D. Rs.50000
      C. Rs.10000
      Explanation: Currently notes of Rs 10,Rs 100,Rs 500 and Rs 1,000 are only printed. However, the RBI has the powers to print currency notes of up to Rs 10,000 denomination. But, an amendment to the Reserve Bank of India Act, 1934 will be needed if any note of higher denomination has to be printed.

    3. CRR must maintain on daily basis at what percent of NDTL?
      A. 10%
      B. 5%
      C. 8%
      D. 4%
      D.4%
      Explanation:  Cash Reserve Ratio is the fraction of the total Net Demand and Time Liabilities(NDTL) of a Scheduled Commercial Bank held in India, that it has to maintain as cash deposit with RBI. The requirement applies uniformly to all banks in the country irrespective of an individual bank’s financial situation or size.

    4. In respect of bills purchased or discounted if the bill remain overdue for more than 90 days then it is called ___________
      A. NPA
      B. NPL
      C. NPM
      D. OPA
      A. NPA
      Explanation: The assets of the banks that don’t bring any return are called Non Performing Assets(NPA). Bank’s assets are the loans and advances given to customers. If customers don’t pay either interest or part of principal or both, the loan turns into bad loan.

    5. Loans in which initially the rate of interest is low as years go on they will increase the rate are known as ________
      A. Appliance Loan
      B. Corporate Loan
      C. Teaser Loan
      D. None of these
      C. Teaser Loan
      Explanation: A Teaser loan is a special loan that is offered for a fixed duration and could then be withdrawn. In India the State Bank of India had two Teaser home Loans including the SBI Easy Home Loan and SBI Advantage Home Loan, but, they were later withdrawn. These loans offered a lower interest rate for the first three years and then the normal rate.

    6. These are assets which cannot be seen, touch are measured physical.
      A. Intangible Assets
      B. Fictitious Assets
      C. Tangible Assets
      D. Goodwill
      A. Intangible Assets
      Explanation:An intangible asset is an asset that you cannot touch. Examples of intangible assets include  copyrights, patents, mailing lists, trademarks, brand names, domain names, and so on.

    7. What is the maximum and minimum limit of NEFT?
      A. Rs.2 lakh
      B. Rs.10000
      C. Rs.2000
      D. No limit
      D. No limit
      Explanation:National Electronic Funds Transfer (NEFT) NEFT is electronic funds transfer system, which facilitates transfer of funds to other bank accounts. Customers can remit any amount using NEFT Customer intending to remit money through NEFT has to furnish the following particulars:IFSC (Indian Financial System Code) of the beneficiary Bank/Branch, Full account number of the beneficiary, Name of the beneficiary. The facility is also available through online mode for all internet banking and mobile banking customers.

    8. If financial assets are more than 50% of its total assets then that company is treated as _______
      A. NBFI
      B. NBFC
      C. Payment Banks
      D. Bank
      B. NBFC
      Explanation:A Non-Banking Financial Company(NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks issued by Government or local authority of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods or providing any services and sale/purchase/construction of immovable property.

    9. Which act applies to all loans up to Rs.1 lakh and above?
      A. SARFAESI Act
      B. BIFR
      C. DRT
      D. SICA
      A. SARFAESI Act
      Explanation:SARFAESI Act is Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Banks utilize this act as an effective tool for NPA recovery. It is possible where non-performing assets are backed by securities charged to the Bank by way of hypothecation or mortgage or assignment.

    10. This money is borrowed or lent for period between 2 days and 14 days.
      A. None
      B. Term Money
      C. Call money
      D. Notice Money
      D. Notice Money
      Explanation:Call Money, Notice Money and Term Money refer to the markets for very short term funds. Call Money for the borrowing or lending of funds for 1 day. Notice Money for the borrowing and lending of funds for 2-14 days. Term money for borrowing and lending of funds for a period of more than 14 days. Notice Money is also known as Short Notice Money.