BANKING QUIZ

1. ‘CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for?
a) Currency
b) Compensation
c) Capital Adequacy
d) Capitalisation

2. In banking parlance, ‘NPA’ stands for
a) Non Performing Asset
b) Net Producing Asset
c) Net Performing Asset
d) Not Promoting Asset

3. LAF is an indirect instrument of monetary policy, which is used by RBI to regulate the liquidity in banking system. ‘LAF’ stands for:
a) Liquidity Adjustment Facility
b) Liquidity Account Facility
c) Liquidity Allotment Facility
d) Long Adjustment Feature

4. _____________are NOT a part of the Scheduled Banking structure in India.
a) Money lenders
b) Public sector banks
c) Private sector banks
d) Regional rural banks

5. ‘MAT’ is an acronym which stands for
a) Maximum Alternate Tax
b) Minimum Alternate Tax
c) Minimum Affordable Tax
d) Maximum Affordable Tax

6. Often, we read in the newspapers that several Indian companies are taking the FCCB route to raise capital. What does the term FCCB stand for?
a) Foreign Currency Convertible Bond
b) Foreign Convertible Credit Bond
c) Financial Consortium and Credit Bureau
d) Future Credit and Currency Bureau

7.The Banking Ombudsman
a) is in charge of bank loan for buses,
b) fixes the rates of interest for loans
c) resolves complaints of customers
d) issues licenses for new bank branches
e) is the head of all nationalized banks

8. Which of the following is NOT a source of funds of a commercial bank?
a) Capital
b) Borrowings from RBI
c) Call money
d) Deposits
e) Cash reserves with RBI

9. ‘KYC’ (Know Your Customer) norms were implemented in the Indian banking system in 2002 as per the directive of
a) SEBI
b) RBI
c) IBA
d) IRDA
e) Indian Government

10. “Scheduled bank” means a bank
a) incorporated under the Companies Act, 1956,
b) authorized to the Banking business,
c) governed by the Banking Regulation Act, 1949,
d) Included in the Second schedule to the Reserve Bank of India Act 1934

11. For filing and resolving customer complaints the banking Ombusdsman
a) charges a fee of 500/- ,
b) does not charge any fee
c) charges a fee of 1500/-
d) charges a fee of 1000/-,
e) none

12. Which of the following can not be adjudged as insolvent?
a) Minor
b) Married woman
c) Firm
d) Lunatic
e) None of the above

13. A cheque becomes stale after _____?
a) 2 months
b) 3 months
c) 6 months
d) 12 months
e) None of the above

14. Bank conducts Government business at its branches as an agent of _____?
a) RBI
b) SBI
c) Government of India
d) State Government
e) None of the above

15. Foreign exchange Reserves of India are kept in the custody of ______?
a) World Bank
b) International Monetary Fund
c) Prime Minister Rahat Kosh
d) Reserve Bank of India
e) None of the above

16.Minimum period for which a locker can be hired is
a) 1 week
b) 3 months
c) 6 months
d) 12 months
e) 1 day

17. When a fixed deposit receipt is kept with the bank for its safety, it is known as
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None