Banking Quiz – 56

BANKING QUIZ

1. As per SEBI directives, what is the minimum public shareholding in case of listed companies
a) 10%
b) 24%
c) 25%
d) 26%
e) 49%

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Answer c) 25%

2. RBI has decided that the total investment by banks in liquid/short term debt schemes (by whatever name called) of mutual FUNDS with weighted average maturity of portfolio of not more than 1 year, will be subject to a prudential cap of _____ of their _____ as on March 31 of the previous year.

a) 3%, net worth
b) 5%, capital FUND
c) 10%, net worth
d) 12.5% capital fund
e) None of these

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Answer c) 10%,net worth

3. What is Net Interest Income (NII)?
a) Difference of interest earned on assets and non-interest income
b) Difference of assets and liabilities
c) Difference of interest earned on assets and interest paid on liabilities
d) None of the above

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Answer a) Difference of interest earned on assets and non-interest income

4. Bombay STOCK Exchange index ‘Sensex’ is based on the value of top _____ blue chip shares of
a) 10
b) 20
c) 25
d) 30
e) 50

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Answer d) 30

5. The held for TRADING securities are required to be sold within _____.
a) 360 days
b) 180 days
c) 90 days
d) there is no such time constraint

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Answer c) 90 days

6. The SLR and non-SLR securities of the banks are classified into 3 categories. Which of these is not part of those 3 categories?
a) monthly
b) quarterly
c) half-yearly
d) yearly
e) None of these

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Answer d)  yearly

7. RBI changes the CRR. Which of the following is correct in this connection?
a) reduction in CRR increases the liquidity position within Indian banks
b) increase in CRR increases the liquidity position within Indian banks
c) increase in CRR does not affect the liquidity position
d) decrease in CRR does not affect the liquidity position
e) None of these

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Answer a) reduction in CRR increases the liquidity position within Indian bank

8. When Repo rate is reduced by RBI, it leads to
a) reduction of cost to borrowers on loans from banks
b) increase in cost of loans to borrowers from banks
c) reduction in cost of borrowing by banks from RBI
d) increase in cost of borrowing by banks from RBI
e) None of these

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Answer c) reduction in cost of borrowing by banks from RBI

9. What is the objective of securitisation of FINANCIAL assets?
a) to enable the banks in speedy recovery of bad loans
b) to sell the securities without intervention of the court, only if loan goes bad
c) to acquire assets and then sell the same at profit
d) recycling of FUNDS and reduce concentration risk
e) All of these

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Answer d) recycling of FUNDS and reduce concentration risk

10. As per SEBI guidelines, the maximum shares buy-back period has been reduced to _____ months from _____ months.
a) 6 months to 3 months
b) 9 months to 6 months
c) 12 months to 6 months
d) 12 months to 9 months

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Answer c) 12 months to 6 months

11. A money deposited at a bank that cannot be withdrawn for a preset fixed period of time is known as a
a) Term deposit
b) Checking account
c) Saving bank deposit
d) No fills account
e) Current deposit

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Answer a) Term deposit

12. A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as
a) CHAPS
b) SWIFT
c) NEFT
d) SFMS
e) CHIPS

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Answer d) SFMS

13. Which of the following ministers along with planning commission of India has decided to set up a corpus fund of Rs 500 crore, so that tribals in Naxal – hit areas can be provided proper means of livelihood?
a) ministry of Rural development
b) Ministry of home affairs
c) Ministry of tribal affairs
d) Ministry of corporate affairs
e) Ministry of finance

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Answer a) ministry of Rural development

14. Which of the following was the issue over which India decided to vote against Sri Lanka in the meeting of one of the UN governed bodies/agencies?
a) Violations of human right in srilanka
b) Allowing china to establish a military base in Indian Ocean
c) Issue of subsidy on agricultural products in the meeting of the WTO
d) Allowing part of srilanka to become an independent country governed by LTTE
e) srilanka`s claim to become a permanent member of UN security council.

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Answer a) Violations of human right in srilanka

15. The term `smart money` refers to
a) Foreign currency
b) Internet banking
c) US dollars
d) traveller`s cheques
e) Credit cards

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Answer e) Credit cards

16. Which one of the following is not a money market Instrument?
a) Treasury bills
b) Commercial paper
c) Certificate to deposit
d) Equity shares
e) None of these

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Answer d) Equity shares

17. Which one of the following is a retail banking product?
a) Home loans
b) Working capital finance
c) Corporate term loans
d) Infrastructure financing
e) Export credit

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Answer a) Home loans

18. As per newspaper reports, India is planning to use `SEU` as fuel in its 700 MW nuclear reactors being developed in new plants. What is full form of `SEU` as used here?
a) Safe electrical units
b) Small electrical units
c) Slightly enriched uranium
d) Sufficiency enriched units
e) Safety enriched uranium

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Answer c) Slightly enriched uranium

19. Which of the following is not a function of the reserve bank of India?
a) Fiscal policy functions
b) Exchange control function
c) Issuance, exchange and destruction of currency notes
d) Monetary authority functions
e) Supervisory and control functions

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Answer a) Fiscal policy functions

20. Which of the following is not required for opening a bank account?
a) Identity proof
b) Address proof
c) Recent photographs
d) Domicile certificate
e) None of the above

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Answer d) Domicile certificate

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