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Banking Awareness Quiz – Set 34

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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. NEFT is used for Electronic Transfer of Funds between two bank accounts. Which of the following is not mandatory for NEFT transaction?
    A. MICR Code
    B. IFSC Code
    C. Recipient’s Bank Account Number
    D. Recipient’s Bank Account Name
    A. MICR Code
    Explanation:NEFT (National Electronic Funds Transfer) offered by the RBI allow electronic transfer of funds from the remitter, who has an account in one bank, to the beneficiary, who has an account in any other bank/branch. The transfer can be carried out using the Internet banking facility. NEFT is settled in batches at times defined by the RBI.

  2. Which committee recommended the set up of Regional Rural Banks?
    A. Nayak Committee
    B. A P Shah Committee
    C. Narsimhan Committee
    D. Rangarajan Committee
    C. Narsimhan Committee
    Explanation:Regional Rural Banks are local level banking organizations and are created with a view to serve primarily the rural areas of India with basic banking and financial services.

  3. Bank for International Settlements which provides the Banking supervision accords is located in ________.
    A. England
    B. USA
    C. France
    D. Switzerland
    D. Switzerland
    Explanation:The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.

  4. Banks borrow funds from which of the following to meet the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements as mandated by the Central bank?
    A. Notice Money Market
    B. Call Money Market
    C. Bill Market
    D. Money Market
    B. Call Money Market
    Explanation:Call money market the most active and sensitive part of the organized money market. It is centered mainly at Bombay. Calcutta and Madras are the market at Bombay being the most important. It deals in one-day loans (called call loans or call money) which may or may not be renewed the next day. The participants are mostly banks. Therefore, it is also called inter-bank call money market.

  5. The apex Bank of the USA is:
    A. Central National Bank of USA
    B. Federal Reserve Bank
    C. Bank of America
    D. Reserve Bank of USA
    B. Federal Reserve Bank
    Explanation:A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. The Federal Reserve System provides the government with a ready source of loans and serves as the safe depository for federal money. The Federal Reserve Banks were created as instrumentalities to carry out the policies of the Federal Reserve System.

  6. Currency notes deposited in the currency chest belongs to ____.
    A. SEBI
    B. RBI
    C. SBI
    D. Government of India
    B. RBI
    Explanation:Distribution of notes throughout the country is done through designated bank branches and is called chests. It is a repository in a commercial bank to store notes and coins on behalf of the Reserve Bank. Deposit into chest leads to credit of the commercial bank’s account and withdrawal, debit.

  7. If a company which is not NBFC wants to collect public deposits it is governed by which Act:
    A. RBI Act 1934
    B. Banking companies Act
    C. Central Government
    D. Companies Act 1956
    D. Companies Act 1956
    Explanation:The Companies Act 1956 was an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries.

  8. _________ is not an electronic Banking delivery medium?
    A. Mobile Vans
    B. Mobile Phone Banking
    C. Internet Banking
    D. Tele Banking
    A. Mobile Vans
    Explanation:Electronic banking, also known as electronic fund transfer (EFT) uses computer and electronic technology in place of checks and other paper transactions. EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose.

  9. Full form of STT is
    A. Standard Transaction Tax
    B. Standard Transfer tax
    C. Securities Transfer tax
    D. Securities Transaction tax
    D. Securities Transaction tax
    Explanation:STT is a kind of turnover tax where the investor has to pay a small tax on the total consideration paid or received in a share transaction. The objective behind the levy is to mitigate tax evasion as the same is taxed at source. Stocks, futures, option, mutual funds and exchange traded funds come under the ambit of STT.

  10. The Chit funds are regulated by ___ in India.
    A. RBI
    B. Government of India
    C. State Governments
    D. Local Bodies
    C. State Governments
    Explanation:Regulator of chit funds is the Registrar of Chits appointed by respective state governments under Section 61 of Chit Funds Act. Powers of adjudication vest in the Registrar and the state government concerned is the Appellate authority.
    A chit fund is a kind of savings scheme practiced in India. A chit fund company is a company that manages, conducts, or supervises a chit scheme.