Banking Knowledge Capsule

1. When RBI  desires  to restrict  expansion of  credit  it  raises  the:
a)Bank Rate
b)  SLR
c) Both SLR  and Bank  Rate
d)  None  of  these

2. Sub Section  12AB  of  section 17 of  RBI  Act  defines  the  term:
a)  Repo Rate
b) Reverse  Repo Rate
c)  SLR
d)  None  of  these

3. When  a  Bank  returns  a  cheque  unpaid,  it  is  called:
a) Dishonor  of  the  Cheque
b)  Cheque  Bounce
c)  Both Dishonor  and Bounce  of  the  Cheque
d)  None  of  these

4.Mortgage  is  Security  on:
a) Immovable  Property
b)  Movable  Property
c)  Both Movable  and Immovable  Property
d)  None  of  these

5. Accounts  in which shares  of  various  companies  are  traded in  electronic  form are called..
a) Demat  Accounts
b)  Revenue  Accounts
c) E-Accounts
d) none of these

6. Full  form  of  FINO:
a) Financial  Information  Network  and  Operation  Limited
b)  Finance  Information Network  Organization
c)  Finance  in  Network  Organization
d)  None  of  these

7. When  the  purchasing  power  of  money  decreases  then rate  of  Inflation:
a)increases
b)  Decreases
c)  May  be  Increase/Decrease
d)  None  of  these

8. Full  form  of  DICGC:
a) Deposit  Insurance  and  Credit  Guarantee  Corporation  of  India Limited b)  Document  of  Insurance  and Credit  Guarantee  Corporation of  India
c)  Deposit  in  International  Credit  Guarantee  Corporation of  India  Limited d)  None  of  these

9. Urban Cooperative  Bank  is:
a) Not  a Commercial  Bank
b)  Not  a  non commercial  Bank
c)  Listed Bank
d)  None  of  these

10. Following is  not  a  primary  function  of  a  Bank:
a) Facilitating Import  of  Goods
b)  Facilitating  Cash Deals
c)  Providing  Loans
d)  None  of  these

11. The  reserves  which  can  act  as  liquidity  buffer  for  commercial  banks  during  crisis  times  are:
a)CRR and SLR
b)  Only CRR
c)  Only  SLR
d)  None  of  these

12. Money  Laundering  is:
a) Conversion  of  money  which  is  illegally  obtained
b)  Conversion of  money  which  is  legally  obtained
c)  All  converted money
d)  None  of  these

13. The  credit  risk  to  the  bank  is  high from  which of  these  card
a) Credit  Card
b)  Debit  Card
c)  Both types  of  Cards
d)  None  of  these

14. Mortgage  is  a  security  on which kind of  property  for  loan given by  the  bank:
a) Immovable  Property
b)  Movable  Property
c)  Both kinds  of  Property
d)  None  of  these

15. NEFT means:
a)National Electronic Funds Transfer
b) National Electronically Financial Transfer
c) Non-Electronic Fund Transfer
d) None of these

16.Interest on savings bank account now calculated by the banks on:
a)Daily Product Basis
b) Monthly Product Basis
c) WeeklyBasis
d) None of these

17.Which of the following is not a money market instrument:
a) Commercial Paper
b) Treasury Bills
c)Loans and Advances
d) None of these

18.Which is the first Bank to launch the Mutual Fund:
a)SBI
b) PNB
c) RBI
d) None of these

19.Commercial Paper is a:
a)Unsecured Money Market Instrument
b) Secured Money Market Instrument
c) Both Secured and Unsecured Instrument
d) None of these

20.Full form of TPA
a)Third Party Administrator
b) Total Performing Assets
c) Third Party Association
d) None of these