Banking Awareness Quiz – Set 86

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. The IMGC is the sole provider of mortgage guarantor for housing finance in India. The alphabet “I” in the abbreviation IMGC stands for________
   A. India
   B. Institute
   C. Internal
   D. Informative
   E. International
   
   Answer & Explanation

   A. India
   Explanation:
   Mortgage Guarantee (also known as mortgage insurance in some parts of the world) is a financial product which compensates lending institutions or housing finance companies for losses that may arise when a home owner defaults on a mortgage loan.
   IMGC is the first company of its kind to introduce this kind of product in the Housing sector in India. The intention is to mitigate risk taken by lenders, banks and housing finance companies, over time making it easier for people to get access to home loans of higher values (or with lower down-payment amounts) earlier in life than would have been possible without IMGC’s involvement.
   
   
2. The national agency mandated to control, analyse and disseminate Suspicious Transaction Reports(STR), Cash Transaction Reports and counterfeit currency reports to various investigative agencies of the country after receiving it from banks and other financial intermediaries is ________
   A. RBI
   B. Financial Intelligence Unit(FIU)
   C. Intelligence Bureau(IB)
   D. Central Bureau of Investigation(CBI)
   E. Central Intelligence Unit(CIU)
   
   Answer & Explanation

   B. Financial Intelligence Unit(FIU)
   Explanation:
   The FIU is the national agency mandated to collect, analyse and disseminate Suspicious Transaction Reports (STRs), Cash Transaction Reports and Counterfeit Currency Reports to various investigative agencies of the country after receiving it from banks and other financial intermediaries under a stipulated mechanism.
   
   
3. According to RBI guidelines the term ‘bulk deposit’ is used for single rupee term deposit of ________
   A. Rs. 2 crore and above
   B. Rs, 25 lakh and above
   C. Rs, 75 lakh and above
   D. Rs, 50 lakh and above
   E. Rs, 15 lakh and above
   
   Answer & Explanation

   A. Rs. 2 crore and above
   Explanation:
   Bulk Deposit means single Rupee term deposits of 2 Crore and above.
   
   
4. A collection of non-bank financial intermediaries that provide services similar to traditional commercial banks is known as _________
   A. Off-shore Banking
   B. Investment Banking System
   C. Shadow Banking System
   D. Conventional Banking
   E. Merchant Banking System
   
   Answer & Explanation

   C. Shadow Banking System
   Explanation:
   A shadow banking system refers to the financial intermediaries involved in facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions.
   
   
5. According to Reserve Bank of India Regulations, “Universal Banks” are permitted to pick up stake in Payment Banks up to _________
   A. 35%
   B. 25%
   C. 20%
   D. 40%
   E. 30%
   
   Answer & Explanation

   E. 30%
   Explanation:
   RBI regulations allow universal banks to invest up 30 per cent in payments banks.
   
   
6. The “Stand Up India” is aimed at promoting entrepreneurship among women and scheduled castes and tribes. The bank loans under the scheme shall be referenced to _______
   A. SIDBI
   B. NABARD
   C. RBI
   D. MUDRA
   E. DRDA
   
   Answer & Explanation

   A. SIDBI
   Explanation:
   The “Stand up India Scheme” is being launched now to promote entrepreneurship among Scheduled Caste/Schedule Tribe and Women for loans in the range of Rs. 10 Lakhs to Rs. 100 Lakhs. The bank loans under the scheme shall be referenced to SIDBI.
   
   
7. An NBFC-MFI is defined as a non-deposit taking NBFC (other than a company licensed under Section 25 of the Indian Companies Act, 1956) with Minimum Net Owned Funds of ________
   A. Rs.5 crore
   B. Rs.4 crore
   C. Rs.3 crore
   D. Rs.2 crore
   E. None of the Above
   
   Answer & Explanation

   A. Rs.5 crore
   Explanation:
   Non Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) licensed under Section 25 of the Indian Companies Act, 1956) with Minimum Net Owned Funds of Rs.5 crore.
   
   
8. The Minimum Net Owned Fund for NBFC-MFIs registered in the North Eastern Region of the country is _________
   A. Rs.5 crore
   B. Rs.4 crore
   C. Rs.3 crore
   D. Rs.2 crore
   E. None of the Above
   
   Answer & Explanation

   Rs.2 crore
   Explanation:
   Minimum Net Owned Fund for NBFC-MFIs registered in the North Eastern Region of the country is Rs. 2 crore.
   
   
9. Which are defined as total assets other than cash and bank balances and money market instruments?
   A. Net Assets
   B. Qualifying Assets
   C. Commercial Papers
   D. Both(A) and (C)
   E. All of the Above
   
   Answer & Explanation

   A. Net Assets
   Explanation:
   “Net assets” are defined as total assets other than cash and bank balances and money market instruments.
   
   
10. In SNRR Account, SNRR stands for _________
    A. Statutory Non Resident Rupee
    B. Single Non Resident Rupee
    C. Statutory Non Reflex Rupee
    D. Single Non Resident Rupee
    E. Special Non Resident Rupee
    
    Answer & Explanation

    E. Special Non Resident Rupee
    Explanation:
    Any person resident outside India, having a business interest in India, can open a Special Non-Resident Rupee Account (SNRR account) with an authorised dealer for the purpose of putting through bonafide transactions in rupees.