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Banking Awareness Quiz – Set 85

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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. _________ is an account maintained in foreign currency with an Authorised Dealer Bank.
    A. Exchange Earners’Foreign Currency Account
    B. Exchange Eligible Foreign Currency Account
    C. Earners’ Eligible Foreign Currency Account
    D. Earners’ Exchange Foreign Currency Account
    E. Equity Exchange Foreign Currency Account
    A. Exchange Earners’Foreign Currency Account
    Explanation:
    Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Bank (Category – I Bank) in foreign exchange.

  2. An EEFC account can be held only in the form of ________
    A. Savings Bank Account
    B. Deposit Account
    C. Current Account
    D. Both (B) and (C)
    E. None of the Above
    C. Current Account
    Explanation:
    An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.

  3. Who is/are eligible to open an EEFC Account?
    A. Individuals
    B. Companies
    C. Residents of India
    D. Both (B) and (C)
    E. All of the Above
    E. All of the Above
    Explanation:
    All categories of foreign exchange earners, such as individuals, companies, etc., who are resident in India, may open EEFC accounts.

  4. Which of the following percentage of foreign exchange earnings can be credited to the EEFC account?
    A. 80%
    B. 90%
    C. 75%
    D. 95%
    E. 100%
    E. 100%
    Explanation:
    under EEFC account, a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account. so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.

  5. What is the minimum maturity period for Rupee Denominated Bonds?
    A. 2 years
    B. 3 years
    C. 4 years
    D. 5 years
    E. None of the Above
    B. 3 years
    Explanation:
    The Rupee denominated bonds can only be issued in a country and can only be subscribed by a resident of a country with minimum maturity period of 3 years.

  6. Which of the following can issue Rupee denominated bonds?
    A. Real Estate Investment Trusts (REITs)
    B. Infrastructure Investment Trusts (InvITs)
    C. Limited Liability Partnerships
    D. Both (A) and (B)
    E. None of the Above
    D. Both (A) and (B)
    Explanation:
    Any corporate (entity registered as a company under the Companies Act, 1956/ 2013) or body corporate (entity specially created out of a specific act of the Parliament) is eligible to issue Rupee denominated bonds overseas. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) coming under the regulatory jurisdiction of the Securities and Exchange Board of India (SEBI) are also eligible. Indian banks are, however, not permitted to issue such bonds. Other resident entities like Limited Liability Partnerships and Partnership firms, etc. are also not eligible to issue these bonds.

  7. What is the maximum amount that can be raised through issuance of Rupee denominated bonds under automatic route?
    A. INR 50 billion
    B. INR 60 billion
    C. INR 55 billion
    D. INR 65 billion
    E. No limit
    A. INR 50 billion
    Explanation:
    The maximum amount that any eligible borrower can raise through issuance of these bonds under automatic route is INR 50 billion or its equivalent during a financial year.

  8. Under Liberalised Remittance Scheme, PAN card need not be insisted upon for remittance made towards permissible current account transactions up to __________
    A. USD 25,000
    B. USD 20,000
    C. USD 15,000
    D. USD 10,000
    E. None of the Above
    A. USD 25,000
    Explanation:
    PAN card need not be insisted upon for remittance made towards permissible current account transactions up to USD 25,000 per financial year.

  9. Which of the following account can be repatriable?
    A. NRE Account
    B. NRO Account
    C. FCNR(B) Account
    D. Both (A) and(C)
    E. All of the Above
    D. Both (A) and(C)
    Explanation:
    Non-Resident (External) Rupee Account Scheme[NRE Account] and Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR (B) Account]can be repatriable
    while Non-Resident Ordinary Rupee Account Scheme[NRO Account]is not repatriable except for all current income.Balances in an NRO account of NRIs/ PIOs are remittable up to USD 1 (one) million per financial year (April-March) along with their other eligible assets.

  10. Which of the following does not have savings account?
    A. NRE Account
    B. NRO Account
    C. FCNR(B) Account
    D. Both (A) and(C)
    E. All of the Above
    C. FCNR(B) Account
    Explanation:
    Non-Resident (External) Rupee Account Scheme[NRE Account]: Savings, Current, Recurring, Fixed Deposit
    Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR (B) Account]: Term Deposit only
    Non-Resident Ordinary Rupee Account Scheme [NRO Account]: Savings, Current, Recurring, Fixed Deposit.