Question 1

Which of the following NBFC converted itself into a commercial Bank?
A)tata finance
B)reliance capital trust
C)birla mutual
D)kotak mahindra

Accepted Answer

Kotak Mahindra Finance Ltd. is the NBFC that converted itself into a commercial bank, becoming Kotak Mahindra Bank. This transition allowed it to offer a wider range of banking services.

Question 2

Which is the current revision & year of UCPDC?
A)ucpdc 500, 1993
B)ucodc 400, 1993
C)ucpdc 300, 1973
D)none of these

Accepted Answer

UCP 500 is the current revision of the Uniform Customs and Practice for Documentary Credits (UCP), published in 1993.

Question 3

The rate of which discounting the bills of first class banks is done by RBI is called
A)bank rate
B)prime lending rate
C)loan rate
D)discounting rate

Accepted Answer

The bank rate is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks without any security. It is a tool used by the RBI to control the supply of money in the economy.

Question 4

Banking ombudsman has been constituted under which act?
A)banking regulation act
B)rbi act
C)sbi act
D)copra

Accepted Answer

The Banking Ombudsman is a quasi-judicial authority constituted under the Banking Regulation Act, 1949 by the Reserve Bank of India to resolve complaints of customers relating to certain services rendered by banks. However, the specific scheme detailing the establishment of the Banking Ombudsman, its powers, and the process is framed under the RBI Act, 1934.

Question 5

The major objective of ……..was to ensure financial safety, soundness, and solvency of banks
A)prudential norms
B)risk norms
C)profit norms
D)none of these

Accepted Answer

Prudential norms are regulatory standards designed to ensure the financial safety, soundness, and solvency of banks. These norms include requirements for capital adequacy, asset classification, provisioning for bad debts, and exposure limits, among others, to mitigate risk and protect depositors.

Question 6

A unit of the Unit Trust of India is a
A)share
B)debenture
C)negotiabl
D)instrument

Accepted Answer

A unit of the Unit Trust of India is a type of financial instrument, specifically a mutual fund unit, which represents an investor's share in the pooled funds.

Question 7

Indian Banks Association (IBA) has a common net working system forsharing the ATM facilities in Mumbai, which is known as
A)atm network
B)shared payment network system
C)cash network
D)none of these

Accepted Answer

The correct answer is B) shared payment network system. This system allows multiple banks to share ATM facilities, enabling customers of one bank to use ATMs of other banks within the network, thus offering greater convenience and accessibility.

Question 8

Arbitrage is
A)buying and selling in two markets simultaneously
B)a rate of interest
C)a fe
D)arbitrage is a dispute

Accepted Answer

Arbitrage involves buying and selling the same asset in two different markets simultaneously to take advantage of differing prices for the same asset.

Question 9

E E F C denotes
A)exchange earners foreign currency account
B)importer's account with bank
C)account maintain
D)by a exporter with rbi

Accepted Answer

EEFC stands for Exchange Earners' Foreign Currency Account, which is an account maintained in foreign currency by a bank for exporters to deposit their foreign exchange earnings.

Question 10

For which of the following currencies is the Indian rupee quotedagainst 100 units of the foreign currency
A)deutsche mark
B)pound
C)japanese yen
D)us dollars

Accepted Answer

The Indian rupee is quoted against 100 units of the Japanese yen. This is because the yen is a relatively low-value currency compared to the rupee, making it practical to use a larger quantity for direct comparison.

Question 11

Exchange risk in case of foreign currency Non Resident (Banks)scheme (FCNB) is borne by
A)rbi
B)depositor
C)govt.of india
D)concerned bank

Accepted Answer

The exchange risk in the FCNB scheme is borne by the concerned bank, as they are responsible for managing the foreign currency deposits and any associated risks.

Question 12

Consortium Advances refer to
A)concurrent borrowings
B)multiple financing
C)joint financing by more than one bank
D)financing of consignment business

Accepted Answer

Consortium Advances refer to joint financing by more than one bank, where several banks come together to provide a loan to a single borrower, typically for large projects that are beyond the capacity of a single lender.

Question 13

NABARD refinance for financing Self Help Groups is to the extent of
A)25%
B)50%
C)75%
D)100%

Accepted Answer

NABARD provides 100% refinance for financing Self Help Groups (SHGs), supporting their activities and ensuring they have the necessary funds for development and empowerment projects.

Question 14

The term Allonge refers to
A)the sheets of paper used in writing a deed
B)the stamps affixed on document
C)a sheet of paper attach
D)to mortgage deed for the purpose of witness

Accepted Answer

The answer of The term Allonge refers to
A)the sheets of...

Question 15

……………is a system of banking in which one bank carries on its business through a network of branches spread all over the country.
A)chain banking
B)unit banking
C)branch banking
D)none of these

Accepted Answer

Branch banking refers to a banking system where a single bank operates multiple branches across different locations, providing services to a wide geographical area.

Question 16

As the credit card gives the overdraft facilities and additional………….power to customer.
A)lending
B)deposit
C)borrowing
D)creating

Accepted Answer

Credit cards provide customers with borrowing power, allowing them to make purchases or withdraw cash up to a certain limit that they can pay back at a later date.

Question 17

…........represents short-term loans granted either to the discount houses or to other banks which are obtainable at call.
A)balance with other banks
B)money at call and short notice
C)bills discount
D)cash in hand

Accepted Answer

Money at call and short notice represents short-term loans that can be called back or are due on a short notice, typically granted to discount houses or other banks.

Question 18

Banking ombudsman means
A)person appointed to recover dues from defaulting borrowers
B)a person to whom customer can approach for redress of his grievances
C)a person appoint
D)to settle dispute between employees and management

Accepted Answer

A banking ombudsman is a neutral, impartial individual or office appointed to resolve disputes and address complaints from customers regarding the services provided by banks. This role does not involve recovering dues from borrowers or settling disputes between employees and management.

Question 19

NGO is the term associated with
A)shg
B)pmry
C)seeuy
D)agri.advances

Accepted Answer

NGO (Non-Governmental Organization) is associated with SHG (Self-Help Group). SHGs are typically non-profit community-based groups, and NGOs often support or form SHGs to promote socio-economic development among underprivileged communities.

Question 20

Full form of SLR
A)statutory liquidity ratio
B)state level recovery
C)sundry leverage ratio
D)state liquidity reserve

Accepted Answer

The full form of SLR is Statutory Liquidity Ratio, which is a term used in the banking sector to denote the minimum percentage of deposits that a bank must maintain in the form of gold, cash, or other approved securities.

Quiz 6: Banking and Financial Terms

Which of the following NBFC converted itself into a commercial Bank?

Which is the current revision & year of UCPDC?

The rate of which discounting the bills of first class banks is done by RBI is called

Banking ombudsman has been constituted under which act?

The major objective of ……..was to ensure financial safety, soundness, and solvency of banks

A unit of the Unit Trust of India is a

Indian Banks Association (IBA) has a common net working system forsharing the ATM facilities in Mumbai, which is known as

Arbitrage is

E E F C denotes

For which of the following currencies is the Indian rupee quotedagainst 100 units of the foreign currency

Exchange risk in case of foreign currency Non Resident (Banks) scheme (FCNB) is borne by

Consortium Advances refer to

NABARD refinance for financing Self Help Groups is to the extent of

The term Allonge refers to

……………is a system of banking in which one bank carries on its business through a network of branches spread all over the country.

As the credit card gives the overdraft facilities and additional………….power to customer.

…........represents short-term loans granted either to the discount houses or to other banks which are obtainable at call.

Banking ombudsman means

NGO is the term associated with

Full form of SLR