Banking Quiz for IBPS | SBI – 296

Banking Quiz for IBPS | SBI – 296

1.PAN number is required for all transactions above-
a) Rs. 2.5 lakh
b) Rs. 10 lakh
c) Rs. 2 lakh
d) None of these

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Answer a) Rs. 2.5 lakh
PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more .

2.Mutual Fund Scheme that operates continuously without any limit entry for subscriptions and redemptions is-
a) Close Ended
b) Open Ended
c) Mixed Fund
d) None of these

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Answer b) Open Ended
An open-end fund is a diversified portfolio of pooled investor money that can issue an unlimited number of shares. The fund sponsor sells shares directly to investors and redeems them as well. These shares are priced daily, based on their current net asset value (NAV).

3.Banking Industry has been declared as public utility service for purpose of
a) Reserve bank of India Act, 1934
b) Banking regulation Act, 1949
c) Industrial Disputes Act
d) None of these

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Answer c) Industrial Disputes Act
The banking sector was put under the public utility services category under the Industrial Disputes Act for six months from March 2001

4.At Present, What is the maximum amount that a payment bank can accept from a depositor?
a) Rs.5 lakhs
b) Rs.1 lakh
c) Rs.2 lakhs
d) None of these

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Answer b) Rs.1 lakh
A payment bank can accept only savings and current deposits of up to Rs 1 lakh per customer. They can issue ATM/debit cards only. They can distribute non-risk sharing simple financial products like mutual funds and insurance products.

5.Foreign exchange reserves of India are kept in the custody of which of the following?
a) International Bank for Reconstruction and Development
b) Reserve Bank of India
c) State Bank of India
d) None of these

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Answer b) Reserve Bank of India
The reserves are managed by the Reserve Bank of India for the Indian government and the main component is foreign currency assets. Foreign-exchange reserves act as the first line of defense for India in case of economic slowdown, but acquisition of reserves has its own costs.

6.1936. The issued/paid-up capital of a Regional Rural Bank should be –
a) Rs. 5 lakh
b) minimum Rs 25 lac and maximum Rs 100 lac
c) Rs. 80 lac
d) None of these

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Answer b) minimum Rs 25 lac and maximum Rs 100 lac

7.An account which is maintained by depositing undistributed parts of profit for future needs is known as ________
a) Savings Account
b) Current Account
c) Reserve Account
d) None of these

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Answer c) Reserve Account

8.Goods and Service Tax, would replace which of the following taxes levied at present?
a) Capital gains tax
b) Corporate tax
c) Value added tax
d) None of these

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Answer c) Value added tax

9.Where is the head quarter of Insurance Regulatory and Development Authority (IRDA)?
a) Hyderabad
b) Bangalore
c) Mumbai
d) None of these

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Answer a) Hyderabad
It was constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India. The agency’s headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.

10.Which of the following is a financial ratio that gives a measure of a company‘s ability to meet its financial losses?
a) Cash Reverse Ratio
b) Leverage Ratio
c) Statutory Liquidity Ratio
d) None of these

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Answer b) Leverage Ratio
Leverage ratios look at the extent to which a company has depended upon borrowing to finance its operations. As a result, these ratios are reviewed closely by bankers and investors. Most leverage ratios compare assets or net worth with liabilities. A high leverage ratio may increase a company’s exposure to risk and business downturns, but along with this higher risk also comes the potential for higher returns. Some of the major measurements of leverage include:

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