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.
- A Committee on Banking Supervision which provides a forum for regular cooperation on banking supervisory matters and to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide.
C. European Banking Supervisors
D. None of theseB. BASEL
Explanation:BASEL is a set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of minimizing credit risk.
- Your account is _____ if you have taken more account than was actually available as cleared funds. This can happen if you have arranged a direct debit without having enough money in your account to cover the payment.
D. None of theseA. Overdrawn
Explanation:If you try to use your debit card when there is not enough money in your account to cover the transaction and your account does not allow overdrawing, the transaction will be declined. No fee is charged. If your account allows overdrawing, you can be charged a fee, like with a check.
- Any form of credit where you don’t have to provide an asset as security against the loan is known as ____________.
A. Secured Credit
B. Cash Credit
C. Unsecured credit
D. None of theseC. Unsecured credit
Credit cards, store cards and some personal loans and overdrafts are usually unsecured forms of credit. Unsecured forms of credit usually have higher interest rates than secured forms of credit.
- BIPS stands for
A. Board Internet Payment System
B. Bank Instrument Payment System
C. Bank Internet Payment Setup
D. Bank Internet Payment SystemD. Bank Internet Payment System
Explanation:It is an electronic system for making payments by moving money directly into a bank account over the Internet
- CHIPS stands for
A. Central House Interbank Payment System
B. Clearing House Interbank Payment System
C. Clearing House International Payment System
D. Clearing House Interbank Priority SystemB. Clearing House Interbank Payment System
Explanation:It is an electronic system for making international payments in dollars and for changing money from one currency to another
- Which among the following is a metal container in the wall of a bank that you can put money into when the bank is closed?
B. Fireproof Safe
C. Safety Deposit Box
D. None of theseC. Safety Deposit Box
Explanation:Safety deposit boxes are used to store valuable possessions, such as gemstones, precious metals, currency, marketable securities, important documents such as wills, property deeds, and birth certificates etc. In the United States, renting out a safe deposit box in a bank does not mean that the property is automatically insured. An individual should still purchase insurance for the safe deposit box in order to cover theft and natural disasters.
- Which among the following are the bonds that give the issuer the right to redeem the bonds before their stated maturity?
A. Straight Bonds
B. Convertible Bonds
C. Call Bonds
D. Callable BondsD. Callable Bonds
Explanation:A callable bond is a bond with an embedded call option. If the issuer agrees to pay more than the face value amount of the bond when called, the excess of the payment over the face amount is the “call premium”. In most cases, the call price is greater than the par price.
- A combination of two or more securities into a single investment position for the purpose of reducing or eliminating risk is known as _____.
C. Mutual Funds
D. SpeculationB. Hedge
Explanation:A risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies. Hedging is used in protecting one’s capital against effects of inflation through investing in high-yield financial instruments (bonds, notes, shares), real estate, or precious metals.
- A financial ratio that measure the amount of debt being used to support operations and the ability of the firm to service its debt is ________.
A. Leverage Ratio
B. Liquidity Ratio
C. Risk based Capital
D. Debt RatioA. Leverage Ratio
Explanation:The financial leverage ratios measure the overall debt load of a company and compare it with the assets or equity. This shows how much of the company assets belong to the shareholders rather than creditors. When shareholders own a majority of the assets, the company is said to be less leveraged. When creditors own a majority of the assets, the company is considered highly leveraged. All of these measurements are important for investors to understand how risky the capital structure of a company and if it is worth investing in.
- RSI stands for
A. Relative Statutory Index
B. Remote Strength Index
C. Relational Strength Index
D. Relative Strength IndexD. Relative Strength Index
Explanation:It is a stock’s price that changes over a period of time relative to that of a market index such as the Standard & Poor’s 500, usually measured on a scale from 1 to 100, 1 being the worst and 100 being the best.