This quiz works best with JavaScript enabled. Home > Finance > Banking > Banking Affairs > Banking Affairs – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Banking Affairs Quiz 47 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is meant by Open Market Operations? A) Purchase and sale of the Government Securities by RBI. B) Rationing of the credit allocated by commercial banks by RBI. C) Request by the RBI to the commercial banks to take certain measures. D) None of the above. Show Answer Correct Answer: A) Purchase and sale of the Government Securities by RBI. 2. Which of the following statements about UCBs undertaking insurance business is/are correct? A) No UCB should undertake insurance agency business without obtaining its prior permission. B) The Reserve Bank has allowed all primary (Urban) co-operative banks to undertake insurance business on a referral basis, without any risk participation through their network of branches. C) The banks need not obtain prior approval of the Reserve Bank to undertake referral business. D) None of the above. Show Answer Correct Answer: D) None of the above. 3. In which pension plan, employers contribution is specified in employees retirement savings funds? A) Defined benefit pension plan. B) Defined non contributory pension plan. C) Deferred contribution pension plan. D) Defined contribution pension plan. Show Answer Correct Answer: D) Defined contribution pension plan. 4. Which of the following is not a feature of Microfinance? A) It provides gainful financial services to unemployed and low-income individuals. B) It promotes saving of money by individuals. C) Interest rates are generally lower than those offered by normal banks. D) None of these. Show Answer Correct Answer: D) None of these. 5. Which of the following terms is not related to banking? A) Fasting. B) Repayment. C) Loan. D) NPA. Show Answer Correct Answer: A) Fasting. 6. In case of a demand draft is issued, the liability of the bank will be..... A) Demand liability. B) Time liability. C) Current liability. D) Long term liability. Show Answer Correct Answer: A) Demand liability. 7. Regional Rural Banks (RRBs) are classified as [NABARD 2009] A) Scheduled commercial banks. B) Subsidiaries of the sponsor banks. C) Subsidiaries of NABARD. D) All of the above. Show Answer Correct Answer: A) Scheduled commercial banks. 8. Which market involves transactions in which one party sells a financial asset to another party and agrees to repurchase an equivalent value of financial assets? A) Gilt repo market. B) Secondary market. C) Primary market. D) Sterling certificates of deposit market. Show Answer Correct Answer: A) Gilt repo market. 9. When was NABARD set up in India? A) 1982. B) 1981. C) 1976. D) 1979. Show Answer Correct Answer: A) 1982. 10. By increasing repo rate, the economy may observe the following effects . A) Rate of interest on loans and advances will be costlier. B) Industrial output would be affected to an extent. C) Banks will increase rate of interest on deposits. D) Industry houses may borrow money from foreign countries. Show Answer Correct Answer: C) Banks will increase rate of interest on deposits. 11. The security which is a claim on the government and is a secure financial instrument guarantees certainty of both capital and interest is called? A) Gilt-Edged Security. B) Call Money. C) Treasury Bills. D) Certificate of Deposits. Show Answer Correct Answer: A) Gilt-Edged Security. 12. The rate of interest payable on a bank deposits is determined by A) RBI. B) Indian Bank's Association. C) Finance Ministry. D) The bank concerned. Show Answer Correct Answer: D) The bank concerned. 13. Sukanya Samriddhi Yojana was launched in which year? A) 2016. B) 2013. C) 2014. D) 2015. Show Answer Correct Answer: D) 2015. 14. Foreign Exchange Reserves of India are kept in the custody of which of the following? A) International Bank for Reconstruction and Development. B) International Monetary Fund. C) Government Treasury. D) RBI. Show Answer Correct Answer: D) RBI. 15. Which of the following debts is treated as Quasi-Equity by lenders? A) Junior Debt. B) Senior Debt. C) Subordinate debt. D) None of the above. Show Answer Correct Answer: C) Subordinate debt. 16. Banks do not purchase/discount A) Documentary Bills. B) Clean Bills. C) Usance Bills. D) Accommodation Bills. Show Answer Correct Answer: D) Accommodation Bills. 17. Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of A) Govt. employees. B) Minors. C) Married women. D) Senior citizens. Show Answer Correct Answer: D) Senior citizens. 18. Which international organisation helped in setting up of ICICI in 1955? A) World Bank. B) ADB. C) IMF. D) None of the above. Show Answer Correct Answer: A) World Bank. 19. Who was the chairman of the Committee on Medium-term Path on Financial Inclusion? A) Chandan Sinha. B) Deepak Mohanty. C) Sushil Chandra. D) Nachiket Mor. Show Answer Correct Answer: B) Deepak Mohanty. 20. How many Public Sector banks are there in India presently? A) 22. B) 19. C) 21. D) 18. Show Answer Correct Answer: D) 18. 21. Self Help groups is related to which of the following models? A) Indian Microfinance Model. B) Financial Inclusion model. C) VK Mehta Model. D) Banking Model. Show Answer Correct Answer: A) Indian Microfinance Model. 22. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as A) Term Deposit. B) Demand Deposit. C) Bond. D) Mortgage. Show Answer Correct Answer: A) Term Deposit. 23. The Govt of India recently provided an amount of Rs.65, 300 cr to about 3.6 cr farmers in India. What was the purpose of the distribution of this much amount to the farmers? A) To enable them to purchase tractors and other hitech agricultural machines. B) This was given to them as a debt waiver and relief package. C) To provide them fertilisers and advanced high-yielding seeds for the next harvesting season. D) To help them avail Internet services and update their knowledge about the farming techniques and adopt new methods of the same. Show Answer Correct Answer: B) This was given to them as a debt waiver and relief package. 24. "Sub Prime lending" is a term applied to the loans made to A) Those borrows who do not have a good credit history. B) Those who wish top take loan against the mortgage of tangible assets. C) Those who have a good credit history and are know to bank since 10 years. D) Those borrowers who are most preferred customers of the bank. Show Answer Correct Answer: A) Those borrows who do not have a good credit history. 25. Which of the following organisations maintains CRR? A) NABARD. B) Ministry of Finance. C) RBI. D) SEBI. Show Answer Correct Answer: C) RBI. 26. Which is India's first Payment bank? A) PayTM Payments Bank. B) Fino Payments Bank. C) Airtel Payments Bank. D) JIO Payments Bank. Show Answer Correct Answer: C) Airtel Payments Bank. 27. Which one of the following is not an objective of fiscal policy? A) Economic growth. B) Economic stability. C) Maximization of employment level. D) None of these. Show Answer Correct Answer: D) None of these. 28. A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as A) Specialized banking. B) Mobile banking. C) Investment banking. D) National banking. Show Answer Correct Answer: A) Specialized banking. 29. The discounting rate at which RBI borrows government securities from commercial banks is known as A) Reverse Repo. B) Deposit Rate. C) Repo Rate. D) Base Rate. Show Answer Correct Answer: C) Repo Rate. 30. First Indian Governor of the RBI: A) Sachindra Ray. B) S. Mukherjee. C) C.D. Deshmukh. D) D.I.G. Patel. Show Answer Correct Answer: C) C.D. Deshmukh. ← 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