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Banking Awareness Quiz – Set 48

By
Aruna
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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. Which acts as a Central Counter Party (CCP) for all transactions in Government securities by interposing itself between two counter parties?
    A. RBI
    B. SEBI
    C. IRDAI
    D. CCIL
    D. CCIL
    Explanation:
    The CCIL is the clearing agency for Government securities.In effect, during settlement, the CCP becomes the seller to the buyer and buyer to the seller of the actual transaction.

  2. _________ are the market operations conducted by the RBI with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
    A. Open Market Operations (OMOs)
    B. Capital Market Operations
    C. When Issued Market
    D. None of the Above
    A. Open Market Operations (OMOs)
    Explanation:
    OMO’s conducted by the RBI by way of sale/ purchase of Government securities to/ from the market.When the RBI feels there is excess liquidity in the market, it resorts to sale of securities thereby sucking out the rupee liquidity. Similarly, when the liquidity conditions are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

  3. ________ means the period for which the securities can not be delivered.
    A. Fixed Time Period
    B. Shut Period
    C. Grace Period
    D. Payback Period
    B. Shut Period
    Explanation:
    During the Shut period there will be no settlements/ delivery of the security.
    The main purpose of having a shut period is to avoid any change in ownership of securities during the process.

  4. Which of the following is not a component of India’s securities market?
    A. Commodity Futures
    B. Government Bond
    C. National Savings Certificates
    D. Savings Bond
    A. Commodity Futures
    Explanation:
    Government Securities include Treasury Bills, Cash Management Bills(CMBs), Dated Government Securities,Savings Bonds, National Saving Certificates (NSCs)etc.,

  5. Which is India’s first and largest Asset Reconstruction Company?
    A. ARCIL
    B. PARAS
    C. Relaince ARC
    D. None of the Above
    A. ARCIL
    Explanation:
    Asset Reconstruction Company (India) Limited (Arcil) is India’s first and largest asset reconstruction company, head quartered in Mumbai. ARCIL, was set up under SARFAESI Act, 2002.It is sponsored by State Bank of India (SBI), IDBI Bank Limited (IDBI), ICICI Bank Limited (ICICI) and Punjab National Bank (PNB).

  6. Which Act was framed specially to deal with Non Performing Assets(NPA)?
    A. Banking Regulation Act 1949
    B. Foreign Exchange Management Act(FEMA) 1999
    C. Industrial Disputes Act 1947
    D. SARFAESI Act, 2002
    D. SARFAESI Act, 2002
    Explanation:
    The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (also known as the Sarfaesi Act) allows banks and other financial institution to auction residential or commercial properties to recover loans. The first asset reconstruction company (ARC) of India, ARCIL, was set up under this act.

  7. In Notice Money Market,the tenor of the transactions is from ________
    A. 2-7 days
    B. 2-14 days
    C. 2-21 days
    D. 2-28 days
    B. 2-14 days
    Explanation:
    In money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day, is referred to as “notice money.”

  8. In Term money market,the tenor of the transactions is from ________
    A. 15 days to One year
    B. 10 days to two years
    C. 13 days to three years
    D. 12 days to four years
    A. 15 days to One year
    Explanation:
    Term money refers to borrowing and lending of funds for a period of more than 14 days.

  9. Bank rate policy, open market operations, variable reserve requirements employed by RBI as measures of Credit Control are __________
    A. Quantitative methods
    B. Qualitative methods
    C. Both (A) and (B)
    D. None of the Above
    A. Quantitative methods
    Explanation:
    There are two methods of Credit Control by RBI are quantitative(or general) methods and qualitative(Or Selective) methods. Quantitative measure includes Bank rate, Open Market Operations, CRR and SLR.

  10. Which method is used to regulate the flow of credit?
    A. Quantitative methods
    B. Qualitative methods
    C. Both (A) and (B)
    D. None of the Above
    B. Qualitative methods
    Explanation:
    There are two methods of Credit Control by RBI are quantitative(or general) methods and qualitative(Or Selective) methods. Qualitative measure includes Margin requirements, Moral Suasion, Rationing of credit and Consumer credit Regulation.





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