Banking Awareness Quiz

1. If a bank is unable to refund the short term deposits as funds are locked in long term loans, it involves:
   (a) Interest Rate Risk
   (b) Operational Risk
   (c) Liquidity Risk
   (d) Market Risk
   (e) None of these
        


2. In computer parlance, "FTP" means:
    (a) File Transfer Protocol
    (b) File Transit Protocol
    (c) File Translate Protocol
    (d) File Typing Protocol
    (e) None of these
       

3. Net National Product is equivalent to:
    (a) Gross Domestic Product minus Depreciation
    (b) Gross National Product minus Indirect Taxes
    (c) Net National Income minus Depreciation
    (d) Gross National Product minus Depreciation
    (e) None of these
       

4. RBI pays interest to banks on their balances kept with it for purposes of Cash Reserve Ratio at:

    (a) Less than 3 per cent
    (b) 3.5 per cent on eligible balances
    (c) At bank rate
    (d) No interest is paid
    (e) None of these
      

 5. S.L. Kapoor Committee relates to:
    (a) financing of Small Scale Industries
    (b) Agriculture financing
    (c) Both A and B
    (d) All of the above
    (e) None of these
         

 6. The buyer or the importer who procures a Letter of Credit from his banker is called:
     (a) opener of the credit
     (b) beneficiary of the credit
     (c) negotiator of the credit
     (d) All of the above
     (e) None of these
          

7. The coverage of Right to information Act (RTI), 2005 is:
    (a) whole of India
    (b) whole of India, except North Eastern States
    (c) whole of India, except the State of Jammu & Kashmir
    (d) All of the above
    (e) None of these
         

8. The difference between a Term Loan and a Deferred Payment Guarantee relates to:
     (a) end use of funds
     (b) outlay of funds
     (c) both A and B
     (d) All of the above
     (e) None of these
           

9. Which is the first bank in India to produce Green Power for captive use through wind mills:
    (a) HDFC
    (b) ICICI
    (c) SBI
    (d) Axis Bank
    (e) None of these
           

10. The term "Holder" under an Option Contract refers to:
      (a) Buyer of the Option
      (b) Seller of the Option
      (c) Middleman/broker
      (d) Dealer
      (e) None of these
         

 11. Which of the following Acts was framed specially to deal more effectively with the problem of Non-Performing Assets in Banking system:
      (a) SARFAESI Act
      (b) Banking Regulation Act
      (c) Foreign Exchange Management Act
      (d) Industrial Disputes Act
      (e) None of these
           

12. Many Banks these days are entering into business of offering loans against property. This business of the banks can be categorized under which of the following heads of banking:
       (a) Corporate Banking
       (b) Personal Banking
       (c) Merchant Banking
       (d) Portfolio Management Services
       (e) None of these
         

13. Which of the following banks enjoys the reputation of being at the top in market capitalization among all the private banks:
      (a) ICICI Bank
      (b) HDFC Bank
      (c) Axis Bank
      (d) Yes Bank
      (e) None of these
         

 14. "Apiary" is:
      (a) export of pearls
      (b) export of fish
      (c) place where bees are reared for honey
      (d) export of diamonds
      (e) None of these
         

 15. Which of the following sources of income for a bank is most significant:
       (a) service Charges
       (b) loans
       (c) deposits
       (d) fees
       (e) None of these
         

Answers 

1. Liquidity Risk

2. File Transfer Protocol

3. Gross National Product minus Depreciation

4. No interest is paid

5. financing of Small Scale Industries

6. opener of the credit

7. whole of India, except the State of Jammu & Kashmir

8. outlay of funds

9. SBI

10. Buyer of the Option

11. SARFAESI Act

12. Personal Banking

13. HDFC Bank

14. place where bees are reared for honey

15. deposits