This quiz works best with JavaScript enabled. Home > Banking > Banking Affairs > Banking Affairs – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking Affairs Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following correctly define India's Foreign Exchange rate system? A) Fixed. B) Free float. C) Managed float. D) Fixed target of band. Show Answer Correct Answer: C) Managed float. 2. The single largest component of external debt is? A) Commercial borrowings. B) Multilateral debt. C) Short term debt. D) NRI deposits. Show Answer Correct Answer: A) Commercial borrowings. 3. RRBs are permitted to undertake corporate agency business, without risk participation, for distribution of all types of insurance products including health and animal insurance subject to the condition that A) The bank should comply with the Insurance Regulatory and Development. Authority (IRDA) regulations for acting as 'composite corporate agent'. B) The bank should not adopt any restrictive practice of forcing its customers to go in only for a particular insurance company in respect of assets financed by the bank. C) The risks, if any, involved in insurance agency should, not get transferred to the business of the bank. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Fiscal Deficit concept was introduced in Indian economy by A) Amartya sen. B) V. K. R. V. Rao. C) S. Chakravarty. D) Madhu Dandavate. Show Answer Correct Answer: C) S. Chakravarty. 5. What should br the CRAR for NBFCs as sponsors of IDF-MF? A) 15%. B) 20%. C) 25%. D) 35%. Show Answer Correct Answer: A) 15%. 6. RBI is lender of last resort which reveals A) RBI advances money to public whenever there is any emergency. B) Commercial banks give fund to the RBI. C) RBI advances necessary credit against eligible securities to financial institutions. D) All of the above. Show Answer Correct Answer: C) RBI advances necessary credit against eligible securities to financial institutions. 7. Recently the Reserve Bank penalised three banks for violation of KYC norms and antimoney laundering guidelines. Which one is not among them? A) Axis Bank. B) HDFC. C) ICICI. D) Kotak Mahindra Bank. Show Answer Correct Answer: D) Kotak Mahindra Bank. 8. Banking and financial services all over the world are regulated usually by the Monetary Authority of the land. Who controls this function in India? A) Ministry of Finance. B) SEBI. C) RBI. D) IRDA. Show Answer Correct Answer: C) RBI. 9. National Spot Exchange (NSEL) is the news for defaulting payments to investors. Who is the founder promoter of FT? A) Jignesh Shah. B) Harshad Mehta. C) Ketan Parekh. D) A K Telgi. Show Answer Correct Answer: A) Jignesh Shah. 10. Which of the following give finance to young, start-up companies? A) Venture capital firm. B) Finance company. C) Small-business finance company. D) Capital-creation company. Show Answer Correct Answer: A) Venture capital firm. 11. Which of the following organisations is known as the market regulator in India? [Syndicate Bank 2009] A) IBA. B) SEBI. C) AMFI. D) NSDL. Show Answer Correct Answer: B) SEBI. 12. Zero balance account is generally allowed to be opened for A) Salaried class. B) Businessmen. C) Foreign customers. D) Children. Show Answer Correct Answer: A) Salaried class. 13. Self Help Group (SHG) Bank Linkgage programme was first launched by A) RRBs. B) NABARD. C) SBI. D) RBI. Show Answer Correct Answer: B) NABARD. 14. Basel-II norms are associated with which of the following aspects of the banking industry? [Punjab & Sindh 2011] A) Risk management. B) Manpower planning. C) Retirement benefits for the employees. D) Corporate Governance. Show Answer Correct Answer: A) Risk management. 15. A 'closed economy is an economy in which A) The deficit financing takes place. B) Only exports takes place. C) Neither exports nor imports takes place. D) The money supply is full. Show Answer Correct Answer: C) Neither exports nor imports takes place. 16. The primary objective of selective credit control is..... A) To raise the cost of credit for all purposes. B) To decrease the total supply of credit in the economy. C) To regulate total Bank credit and general level of interest rates. D) To influence allocation of credit among different borrowers and users. Show Answer Correct Answer: D) To influence allocation of credit among different borrowers and users. 17. Moral Suasion is the instrument of A) Trade Policy. B) Fiscal Policy. C) Budget. D) Monetary Policy. Show Answer Correct Answer: D) Monetary Policy. 18. Voting rights in the IMF are distributed on the basis of A) One country, one vote. B) Proportion to the share of the income of the country in the world income. C) Proportion to contributions given by each country. D) Proportion to quota allotted to countries from time to time. Show Answer Correct Answer: D) Proportion to quota allotted to countries from time to time. 19. In context of business and banking, what is CRAR? A) Capital to Risk (Weighted) Asset Ratio. B) Credit to Risk Asset Ratio. C) Credit to Risk Assessment Ratio. D) Capital to Risk Assessment Rate. Show Answer Correct Answer: A) Capital to Risk (Weighted) Asset Ratio. 20. As per the new guidelines issued by RBI, the minimum required capital to set up a bank by corporates is set at..... A) Rs. 600 crore. B) Rs. 700 crore. C) Rs. 400 crore. D) Rs. 500 crore. Show Answer Correct Answer: D) Rs. 500 crore. ← PreviousNext →Related QuizzesBanking QuizzesBanking Affairs Quiz 1Banking Affairs Quiz 2Banking Affairs Quiz 3Banking Affairs Quiz 4Banking Affairs Quiz 5Banking Affairs Quiz 6Banking Affairs Quiz 7Banking Affairs Quiz 8Banking Affairs Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books