This quiz works best with JavaScript enabled. Home > Banking > Banking Affairs > Banking Affairs – Quiz 89 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking Affairs Quiz 89 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following best define the term Relationship discount? A) It is given to the couple applying for personal loans. B) It is an additional benefit by banks. C) It is given to a prospective applicant if they have a pre-existing relationship with the lender. D) Both b and c. Show Answer Correct Answer: D) Both b and c. 2. When was the State Bank of India nationalised? A) 1955. B) 1956. C) 1959. D) 1964. Show Answer Correct Answer: A) 1955. 3. Under which among the following acts, Hawala transactions are banned in India? A) FERA. B) FEMA. C) FRBMA. D) AFSPA. Show Answer Correct Answer: B) FEMA. 4. The type of note issue system followed in India is A) Proportional Fiduciary System. B) Fixed Fiduciary System. C) Minimum Reserve System. D) Minimum Fiduciary System. Show Answer Correct Answer: B) Fixed Fiduciary System. 5. What is the maximum population limit for a commercial bank branch to be declared as rural branch? A) 1 lac. B) 2 lac. C) 4 lac. D) 5 lac. Show Answer Correct Answer: A) 1 lac. 6. In case of default, what is the minimum percent of additional interest is paid by issuer company? A) 15%. B) 5%. C) 2%. D) 1%. Show Answer Correct Answer: C) 2%. 7. Many a times we read in the news paper about CASA deposits of banks. CASA deposits are A) Demand deposits. B) Term deposits. C) Hybrid deposits. D) Recurring deposits. Show Answer Correct Answer: A) Demand deposits. 8. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a 'banking company' means any company which A) Accepts deposits from the public. B) Undertakes lending of money. C) Transacts the business of banking in. D) All of the above. Show Answer Correct Answer: C) Transacts the business of banking in. 9. Which one of the following deficits deducted the interest payments to internal and external debt from the fiscal deficit to calculate the deficit of an economy? A) Revenue deficit. B) Twin deficit. C) Primary deficit. D) Budgetary deficit. Show Answer Correct Answer: C) Primary deficit. 10. A banker is expected to honour the cheques within the specified banking hours as per section of Negotiable Instrument Act, 1881. A) 22. B) 25. C) 30. D) 65. Show Answer Correct Answer: D) 65. 11. In our country, now a cheque remains valid for payment for.....from the date of issue. A) 3 months. B) 6 months. C) 9 months. D) 12 months. Show Answer Correct Answer: A) 3 months. 12. The main function of Central Statistical Organisation is..... A) To determine the money supply. B) To determine prices. C) To publish national income estimates. D) To collect employment details. Show Answer Correct Answer: C) To publish national income estimates. 13. In Union Budget 2014-15, the exemption on income for senior citizens has been raised to . A) Rs. 2 lakh per annum. B) RS. 2.5 lakh per annum. C) Rs. 3 lakh per annum. D) Rs. 3.5 lakh per annum. Show Answer Correct Answer: C) Rs. 3 lakh per annum. 14. Which of the following was first bank managed by Indians? A) Bank of Baroda. B) Bank of India. C) Punjab National Bank. D) Central Bank of India. Show Answer Correct Answer: C) Punjab National Bank. 15. The merit of issuing notes with RBI can be seen is A) Uniformity. B) Stability in currency. C) Control of credit. D) All of these. Show Answer Correct Answer: D) All of these. 16. A bank is under a statutory obligations to honour its customer's cheques vide A) Section 10 of the Banking Regulation Act, 1949. B) Section 3 of the RBI Act, 1934. C) Section31 ofthe Negotiable Instruments Act, 1881. D) All of the above. Show Answer Correct Answer: C) Section31 ofthe Negotiable Instruments Act, 1881. 17. Which of the following rates is not determined by RBI? A) Bank Rate. B) CRR. C) SCR. D) PLR. Show Answer Correct Answer: D) PLR. 18. The currency notes of which of the following denominations are not printed in India? A) Rs. 5. B) Rs. 10. C) Rs. 50. D) Rs. 2500. Show Answer Correct Answer: D) Rs. 2500. 19. What is the type of banking where banks operate only from a single branch called as? A) Narrow banking. B) Unit Banking. C) Shadow Banking. D) None of the above. Show Answer Correct Answer: B) Unit Banking. 20. All commercial banks demand deposit liabilities may decrease as a result of..... A) An inflow of cash. B) A decrease in loans. C) An increase in security holdings. D) The chasing of a cheque by an individual or a firm. Show Answer Correct Answer: B) A decrease in loans. ← 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