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Current Banking Awareness Quiz – Set 5

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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. Kirti had filed a complaint with Banking Ombudsman but is not satisfied with the decision. What is the next option before him for getting his matter resolved?
    1)File an appeal before finance minister
    2)File an appeal before the Dy. Governor of RBI
    3)Write to CMD of bank
    4)None of the Above
    Answer – 2)File an appeal before the Dy. Governor of RBI
    Explanation :
    The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services.All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.

  2. Method used to monitor all international monetary transactions by countries
    1)Import-Export balance
    2)Balance of Trade
    3)Balance of Payment
    4)Balance of Power
    Answer – 3)Balance of Payment
    Explanation :
    Balance of Payment is the record of all economic transactions between the residents of the country and the rest of the world over a quarter of a year or more commonly over a year.

  3. Loan that until a person or company secures permanent financing or erase an existing obligation is
    1)Letter of Credit
    2)Bridge Loan
    3)Cash Credit
    4)Term Loan
    Answer – 3)Cash Credit
    Explanation :
    This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.

  4. Type of money that any bank or institution loan is repayable on demand called as
    1)Cash credit
    2)Short term Loan
    3)Call money
    4)Demand Loan
    Answer – 3)Call money
    Explanation :
    Unlike a term loan, which has a set maturity and payment schedule, call money does not have to follow a fixed schedule.

  5. Banks where a majority stake is held by Government above 50% are known as
    1)Nationalised Banks
    2)Commercial Banks
    3)Public Banks
    4)Government Banks
    Answer – 3)Public Banks

  6. Crossing on a cheque can be cancelled by the ______ of the cheque under his full sign.
    1)Payee
    2)Drawer
    3)Drawee
    4)Holder
    Answer – 2)Drawer
    Explanation :
    Crossing is a popular device for protecting the drawer and payee of a cheque. Both bearer and order cheques can be crossed. Crossing prevents fraud and wrong payments. Crossing of a cheque means “Drawing Two Parallel Lines” across the face of the cheque. Thus, crossing is necessary in order to have safety. Crossed cheques must be presented through the bank only because they are not paid at the counter.

  7. What is the maximum period for which domestic term deposits are normally accepted by banks?
    1)7 years
    2)5 years
    3)10 years
    4)15 years
    Answer – 3)10 years
    Explanation :
    When a term deposit is purchased, the lender (the customer) understands that the money can only be withdrawn after the term has ended or by giving a predetermined number of days notice. These types of financial products are sold by banks, thrift institutions and credit unions.

  8. When Government borrows money from RBI it is known as
    1)Term Financing
    2)Current Financing
    3)Deficit Financing
    4)None of the above
    Answer – 3)Deficit Financing
    Explanation :
    Deficit Financing in which Government spends more money than it receives as revenue the difference being made up by borrowing or minting new funds.

  9. What are the first 6 numbers indicate in MICR cheque?
    1)Bank code
    2)Branch name
    3)City code
    4)Cheque Number
    Answer – 4)Cheque Number
    Explanation :
    Magnetic Ink Character Recognition is a character recognition system that uses special ink and characters. When a document that contains this ink needs to be read, it passes through a machine, which magnetizes the ink and then translates the magnetic information into characters. It is used by banks. Numbers and characters found on the bottom of checks (usually containing the check number, sort number, and account number) are printed using Magnetic Ink. To print Magnetic Ink need, you need a laser printer that accepts MICR toner.

  10. It is the action taken by a buyer or seller to protect his business or assets against a change in prices.
    1)Hard
    2)Hot
    3)Hedge
    4)None of these
    Answer –3)Hedge
    Explanation :
    For example: If a flour miller who has a contract to supply flour at a fixed price in two month’ time can hedge against the possibility of a rise in the price of wheat in two months’ time by buying the necessary wheat now and selling a two months future in wheat for the same quantity.