This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking Affairs > Banking Affairs – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking Affairs Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the maximum amount of loan available to individuals on securities of demat shares? A) RS.15 lacs. B) RS.20 lacs. C) RS.25 lacs. D) RS.10 lacs. Show Answer Correct Answer: B) RS.20 lacs. 2. Which of these is used as promise from a bank to make a payment assuming certain conditions are met? A) Cash Credit. B) Letter of Credit. C) Term Loan. D) Over Draft. Show Answer Correct Answer: B) Letter of Credit. 3. What are the benefits of leasing to other companies? A) Interest Revenue. B) High Residual Values. C) Tax Incentives. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 4. For which of the following reasons, NABARD has set up joint liability groups (JLG) of farmers? A) To facilitate delivery of credit to farmers. B) To facilitate better delivery of credit to farmers through informal sources. C) To facilitate better delivery of credit to share croppers and those who do not have their own land. D) To facilitate better delivery of credit to farmers through Panchayats. Show Answer Correct Answer: C) To facilitate better delivery of credit to share croppers and those who do not have their own land. 5. Primary Deficit is obtained by subtracting.....from fiscal deficit. A) Borrowings. B) Depreciation. C) Interest Payment. D) Revenue Deficit. Show Answer Correct Answer: C) Interest Payment. 6. Which statement is not correct about Capital Adequacy Ratio? A) It is a thermometer of Bank's Health. B) It is the ratio of its Capital to its Risk. C) It can indicate the Capacity of the Bank's ability to absorb the possible losses. D) A good CAR makes vulnerable to the Depositors and lose faith in the banking system. Show Answer Correct Answer: D) A good CAR makes vulnerable to the Depositors and lose faith in the banking system. 7. Foreign currencies are represented in various abbreviations. What is meant by USD? A) Unit of Cunency of Denmark. B) Ukrainian Soviet Dollar. C) US Dollar. D) UAE Dinar. Show Answer Correct Answer: C) US Dollar. 8. Which of the following terms is used in the field of Finance and Banking? A) Quantum number. B) Adjustment credit. C) Gauge pressure. D) Absolute zero. Show Answer Correct Answer: B) Adjustment credit. 9. The rate on which banks borrow from the RBI is called.....[Punjab & Sindh 2010] A) SLR. B) Repo Rate. C) CRR. D) Interest Rate. Show Answer Correct Answer: B) Repo Rate. 10. In production sector, a small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed how much amount? A) Rs 2 crore. B) Rs 10 crore. C) Rs 5 crore. D) Rs 3 crore. Show Answer Correct Answer: C) Rs 5 crore. 11. The maximum Statutory Liquidity Ratio to be maintained by banks is..... A) 35%. B) 30%. C) 40%. D) 25%. Show Answer Correct Answer: C) 40%. 12. Which of the following conditions are required to be fulfilled by a Regional Rural Bank (RRB) to be eligible for opening of new branches? A) It should not have defaulted in maintenance of SLR and CRR during the last 2 years. B) It should be making operational profits. C) Its net worth shouldshow improvement and its net NPA ratio should not exceed 8%. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. A-card stores and provides indentification authentication, data storage and application processing applications A) ATM Card. B) Credit Card. C) Smart Card. D) Debit Card. Show Answer Correct Answer: D) Debit Card. 14. Which of the following is not a function of the RBI? (Bank PO 2010) A) Maintaining Forex. B) Deciding Bank Rate, CRR and SLR from time to time. C) Opening Savings Accounts for general public. D) Prescribing the Capital Adequancy Ratio. Show Answer Correct Answer: C) Opening Savings Accounts for general public. 15. Which of the following agencies/organisations has decided to make major changes for ULIPs? A) RBI. B) FRBI. C) AMFI. D) IRDA. Show Answer Correct Answer: D) IRDA. 16. Which of the following in India formulates the fiscal policy? A) RBI. B) Planning Commission. C) Ministry of Finance. D) Finance Commission. Show Answer Correct Answer: C) Ministry of Finance. 17. The first Indian bank to open a branch outside India in London in 1946? A) BOI. B) PNB. C) BOB. D) SBI. Show Answer Correct Answer: A) BOI. 18. Financial inclusion is meant for? A) Less provilged persons. B) Senior citizens. C) Micro finance institutions. D) All of the above. Show Answer Correct Answer: A) Less provilged persons. 19. 'Sub-prime Lending is a term applied to the loans made A) Those borrowers who do not have a good credit history. B) Those who wish to take loan against the mortgage of tangible assets. C) Those who have a good credit history and are known to bank since 10 years. D) Those borrowers who are most preferred customers of the bank. Show Answer Correct Answer: A) Those borrowers who do not have a good credit history. 20. Telecom Sector is considered as A) Priority sector. B) Non-priority sector. C) Infrastructural sector. D) Sector with special status. Show Answer Correct Answer: C) Infrastructural sector. 21. Money Laundering normally involves A) Placement of funds. B) Layering of funds. C) Integration of funds. D) All. Show Answer Correct Answer: D) All. 22. When was Deposit Insurance and Credit Guarantee Corporation established under RBI? A) 1981. B) 1969. C) 1976. D) 1978. Show Answer Correct Answer: D) 1978. 23. In index of financial inclusion has been launched for the first time in 2008 by A) BSE. B) CCI. C) ICRIER. D) NSE. Show Answer Correct Answer: C) ICRIER. 24. Who was the chairman of the committee formed by RBI to evaluate applications received for small finance banks in 2015? A) Raghuram Ram Rajan. B) Urjit Patel. C) Nachiket Mor. D) Usha Thorat. Show Answer Correct Answer: D) Usha Thorat. 25. Which of the following is not the name of the sensitive index of any stock exchange? A) Nifty. B) SX 40. C) Dow. D) CRIS. Show Answer Correct Answer: D) CRIS. 26. In what form the banks are required to maintain deposits with RBI under CRR? A) Cash. B) Government Securities. C) Gold. D) All of the above. Show Answer Correct Answer: A) Cash. 27. Money market where debt and stocks are traded and maturity period is more than a year is classified as which of the following? A) Counter markets. B) Long-term markets. C) Shorter term markets. D) Capital markets. Show Answer Correct Answer: D) Capital markets. 28. In a Poverty Pyramid index, which of the following segments of population faces the highest poverty risk? A) Formal Wage Employment. B) Informal Self-Employment: Employers. C) Regular Informal Wage Employment. D) Casual Informal Wage Employment and Domestic Work. Show Answer Correct Answer: D) Casual Informal Wage Employment and Domestic Work. 29. Net balance maintained in current account by co-operative banks with.....are not treated as cash for the purpose of CRR/SLR. A) State Bank of Hyderabad. B) IDBI Bank Limited. C) State Bank of India. D) Canara Bank. Show Answer Correct Answer: B) IDBI Bank Limited. 30. What is the main business of commercial banks? A) Lending and deposits from public. B) Lending and deposits from corporation. C) Both A and B. D) None. Show Answer Correct Answer: C) Both A and B. ← PreviousNext →Related QuizzesBanking QuizzesFinance QuizzesBanking Affairs Quiz 1Banking Affairs Quiz 2Banking Affairs Quiz 3Banking Affairs Quiz 4Banking Affairs Quiz 5Banking Affairs Quiz 6Banking Affairs Quiz 7Banking Affairs Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books