Banking Awareness Quiz – Set 49

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 of the following Condition(S) is/are satisfied by Systematically Important Core Investment Company(CIC-ND-SI)?
   A. It does not accept Public Funds
   B. It is a NBFC with asset size of Rs.100 and above
   C. It holds less than 90% of its net assets in the form of investment in equity shares, bonds.
   D. All of the Above
   
   Answer & Explanation

   B. It is a NBFC with asset size of Rs.100 and above
   Explanation:
   A CIC-ND-SI is a Non-Banking Financial Company with asset size of Rs 100 crore and above. It accepts Public Funds. It holds not less than 90% of its net assets in the form of investment in equity shares, bonds etc.,
   
   
2. Systematically Important Core Investment Company(CIC-ND-SI)/ CICs can not accept ________
   A. Public Fund
   B. Deposit
   C. Public Deposit
   D. Both (B) and (C)
   
   Answer & Explanation

   D. Both (B) and (C)
   Explanation:
   CICs/CIC-ND-SI can not accept deposit. Also It can’t accept public deposit which is included by Public Fund.
   
   
3. CICs having asset size of _________are exempted from registration and regulation from the RBI
   A. Below Rs 100 crore
   B. Above Rs 100 crore
   A. Below Rs 50 crore
   B. Above Rs 50 crore
   
   Answer & Explanation

   A. Below Rs 100 crore
   Explanation:
   CICs having asset size of below Rs 100 crore are not regulated by RBI. except if they wish to make overseas investments in the financial sector.
   
   
4. CICs are permitted to invest Liquid Fund Schemes (Mutual Funds) with maturity of less than ____ days.
   A. 51
   B. 71
   C. 61
   D. 91
   
   Answer & Explanation

   D. 91
   Explanation:
   CICs are permitted to make investments in money market instruments,including money market mutual funds.
   
   
5. CICs/CIC-ND-SI holds not less than 90% of its net assets in the form of investment in _________
   A. equity shares
   B. bonds
   C. debentures
   D. All of the Above
   
   Answer & Explanation

   D. All of the Above
   Explanation:
   CICs/CIC-ND-SI holds not less than 90% of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.
   
   
6. _________ is a NBFC which deploys at least 75 per cent of its total assets in infrastructure loans.
   A. Investment Company(IC)
   B. Loan Company(LC)
   C. Infrastructure Finance Company(IFC)
   D. Asset Finance Company(AFC)
   
   Answer & Explanation

   C. Infrastructure Finance Company(IFC)
   Explanation:
   Infrastructure Finance Company(IFC) has a minimum Net Owned Funds of Rs.300 Crore.It has a minimum credit rating of ‘A ‘or equivalent and a Capital to Risk (Weighted) Assets Ratio(CRAR) of 15%.
   
   
7. Infrastructure Finance Company(IFC) has a minimum Net Owned Funds of _______
   A. 100 Crore
   B. 150 Crore
   C. 250 Crore
   D. 300 Crore
   
   Answer & Explanation

   D. 300 Crore
   Explanation:
   Infrastructure Finance Company(IFC)is a NBFC which deploys at least 75 per cent of its total assets in infrastructure loans. It has a minimum credit rating of ‘A ‘or equivalent and a CRAR of 15%.
   
   
8. _________ means any company which is a financial institution carrying on as its principal business the acquisition of securities.
   A. Investment Company(IC)
   B. Loan Company(LC)
   C. Infrastructure Finance Company(IFC)
   D. Asset Finance Company(AFC)
   
   Answer & Explanation

   A. Investment Company(IC)
   Explanation:
   Investment Company(IC) is a company whose main business is holding securities for investment purposes.
   
   
9. _______is financial institution through which promoter / promoter groups will be permitted to set up a new bank.
   A. Investment Company(IC)
   B. Loan Company(LC)
   C. Infrastructure Finance Company(IFC)
   D. Non-Operative Financial Holding Company (NOFHC)
   
   Answer & Explanation

   Non-Operative Financial Holding Company (NOFHC)
   Explanation:
   Non-Operative Financial Holding Company (NOFHC) will hold the bank as well as all other financial services companies regulated by RBI or other financial sector regulators, to the extent permissible under the applicable regulatory prescriptions.
   
   
10. Mortgage Guarantee Company(MGC) has a minimum Net Owned Funds of _______
    A. 100 Crore
    B. 150 Crore
    C. 250 Crore
    D. 300 Crore
    
    Answer & Explanation

    A. 100 Crore
    Explanation:
    Mortgage Guarantee Companies(MGC) are financial institutions for which at least 90% of the business turnover is mortgage guarantee business. It has a minimum Net Owned Funds of Rs.100 Crore.