Foreign currency convertible bonds

Forex currency convertible bonds

Form currency convertible bonds

Future currency convertible bonds

the bank which accepts deposits and invests the amount in government securities

The bank branch which has narrow corridors

the bank situated in narrow street

the bank which only lends loans and not accepts any deposits from the public

Practice Banking Awareness Miscellaneous Multiple Choice Questions Quiz-1

Q.1

Who sets up the Bench Mark Interest Rate for Germany?

German Central Bank
Deutsche Bundes Bank
European Central Bank (ECB)
Deutsche Bank

Q.2

FCCB stands for

Foreign currency convertible bonds
Forex currency convertible bonds
Form currency convertible bonds
Future currency convertible bonds

Q.3

"De–Mat" account is regulated by

RBI
SBI
IRDA
SEBI

Q.4

These days RBI uses Selective credit control measures rather infrequently because of:

Deregulation of functions
Autonomy given to banks
Comfortable liquidity
Reasonable inflation level
All the above

Q.5

Capital market is a market for long-term debt and equity shares. It is further divided in to?

Secondary Market and Bull Market.
Bull Market and Bell Market.
Primary Market and Secondary Market.
Primary Market and Government Cash Bond Market.

Q.6

Shares issued in Primary market in the form of IPO and FPO. IPO means?

India Public Offer
Initial Private Offer
Initial Public Off
Initial Public Offer

Q.7

_____ is raised in capital markets.

Funds through long term securities
Long term loans through Govt. securities
Medium term loans
Short - term instruments

Q.8

Interest on Government securities on fixed basis is known as

Bank rate
Coupon
Prime Lending Rate
Bench mark PLR

Q.9

Lock period in Term deposit means?

Locker must be opened by the customer in the branch.
The Pre-maturity is not possible.
Another account cannot be opened by customer.
Nominee name need not be written.

Q.10

Which of the following happened to be the first private bank in India to receive an in-principle approval from RBI?

HDFC Bank
ICICI Bank
Yes Bank
United Western Bank

Q.11

The approach of ‘Micro-Credit’ or ‘Banking with the poor’ is comparatively a new concept in the field of rural credit. This approach has been tried very successfully in which of the following countries?

India
China
Japan
Bangladesh

Q.12

The lowering of Bank Rate by the Reserve Bank of India leads to

More liquidity in the market
Less liquidity in the market
No change in the liquidity in the market
Mobilization of more deposits by commercial banks

Q.13

RBI is lender of last resort which reveals

RBI advances money to public whenever there is any emergency
Commercial banks give fund to the RBI
RBI advances necessary credit against eligible securities to financial institutions
All of the above

Q.14

The ability of commercial banks to increase their deposits by expanding their loans and advances is known as

Capital expansion
Credit expansion
Credit control
Credit creation

Q.15

What is India's Apex Tax body?

CBDT
GAAR
IT Department
RBI

Q.16

Banks in India are governed by BR Act 1949. What does 'BR' stands for?

Banks Registration
Banking Re-organization
Banking Regulation
Banking Rights

Q.17

In India, Scheduled Commercial Banks are those Banks included?

In the 2nd Schedule of RBI Act 1934
In the 2nd Schedule of BR Act 1949
In the 2nd Schedule of NI Act 1881
In the 2nd Schedule of Companies Act 1956

Q.18

Which of the following statement is/are true about fiat money?

Fiat money includes physical token like certificates
Fiat money's value is not derived from any intrinsic value are relative value is based only on government order
Fiat money can be converted in to valuable commodity (like gold)
None of these

Q.19

A scheduled bank must be

Company incorporated by any law in force in any place in India
An institution notified by GOI
A company as defined by Companies Act, 2013
All of the Above

Q.20

The Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as the

Exchange rate
MIBOR
Inter bank Call money rate
Base rate

Q.21

Which among the following accounts deposit fetch the highest rate of interest?

Savings deposit
Recurring deposit
Fixed deposit
Current account deposit

Q.22

M/s XYZ company has got an order to supply Machinery to M/s ABC Co of Nigeria. Who has to get a Letter of Credit issued from a Bank?

M/s ABC since they are the importers
M/s XYZ since they are the exporters
Both since they are the parties to the agreement
RBI since they regulate the Foreign Trade in India

Q.23

What is 'Packing Credit'?

Finance extended to packing materials industry
Finance extended to an Importer to pack the goods imported
Finance extended to Warehouses for keeping the goods packages
Finance extended to an Exporter to meet the costs of buying and/ or making products to be exported

Q.24

Narrow banking means

The bank branch which has narrow corridors
the bank situated in narrow street
the bank which accepts deposits and invests the amount in government securities
the bank which only lends loans and not accepts any deposits from the public

Q.25

Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements employed by Reserve Bank as measures by Reserve of credit control are classified as

Quantitative methods
Qualitative methods
Both of the above
None of these

Q.26

“Micro Credits” are loans

granted to distressed person (other than farmers) to pre-pay their debt to non- institutional lenders against appropriate collateral or group security,
not exceeding 50.000 per borrower provided by banks
both (1) and (2)
None of these

Q.27

What does FSDC stand for?

Financial Security and Development Council
Financial Stability and Development Council
Fiscal Security and Development Council
Fiscal Stability and Development Council

Q.28

Which of the following is not a part of the scheduled banking structure in India?

Public Sector Banks
Moneylenders
Private Sector Banks
Regional Rural Bank

Q.29

The rate of interest on Savings Bank Account is decided by

RBI
Indian Banks Association
Government of India
The Concerned Bank

Q.30

Many times we read a term CBS used in banking operation. What is the full form of the letter ‘S’ in the term ‘CBS’?

Systematic
Super
Support
Solution