Banking GK-3

Banking GK-3

1. After completion of 15 years, Public Provident Fund (PPF) can be extended up to how many years?

Answers: 5 years

2. Short term Money lending process is known as:

Answers: Call Money

3. Treasury bill tenure:

Answers: 91 days, 182 days, 364 days

4. Minimum limit for medium scale enterprises is Rs. 5 Cr. what is maximum limit?

Answers: 10 Cr.

5. Prime Lending Rate is replaced by:

Answers: Base rate

6. Banks cannot grant Loan below which rate:

Answers: Base Rate

7. If RBI reduces CRR, what happens:

Answers: Credit Supply increases, loans get cheaper.

8. Name the scheme to include every people under banking system:

Answers: Financial Inclusion

9. Special Drawing Right (SDR) is a monetary unit of:

Answers: IMF

10. Cheque which is not crossed is called:

Answers: Open cheque

11. Teaser rates are related to which type of loans:

Answers: Home loans

12. What is Teaser loan?

Answers: If a bank offers a slightly lower rate in the initial years and higher rate in later years, it is called a teaser loan.

13. The RBI policy rate which is purely an indicative rate used by RBI to signal long – term outlook on interest rates is:

Answers: Bank rate

14. The term ‘pre – shipment’ finance relates to:

Answers: export credit

15. A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company:

Answers: Indian Depository Receipt (IDR)

16. With effect from July 2012, for calculating of lending rates, the RBI has advised banks to switch over to the:

Answers: Base Rate systems

17. Mobile banking fund transfer limit in a day:

Answers: Rs. 50,000

18. The seed capital of Bhartiya Mahila Bank is:

Answers: Rs.1000 crore

19. “Lender of the Last Resort” by Banks is known as:

Answers: RBI

20. “Fixed deposit” is also referred to as:

Answers: Term Deposit

21. The holidays for the banks are declared as per:

Answers: Negotiable Instruments Act

22. In banking business, when the borrowers avail a term Loan, initially they are given a repayment holiday and this is referred as:

Answers: Moratorium

23. Regulator of Micro, Small and Medium enterprises in India:

Answers: SIDBI (Small Industries Development Bank of India)

24. A worldwide financial messaging network which exchanges between banks and financial institutions is known as:

Answers: Structured Financial Messaging System (SFMS).

25. The term “Smart Money” refers to:

Answers: Credits Card

26. The maximum deposit amount insured by DICGC?

Answers: Rs. 1 lakh per depositors across all banks

27. With reference to a cheque which is the ‘drawee bank’?

Answers: The bank upon which the cheque is drawn

28. In which of the following fund transfer mechanisms, can funds be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?

Answers: RTGS

29. Bad advances of a Bank are called:

Answers: Non – performing Asset

30. By increasing repo rate, the economy may observe the following effects:

Answers: rate of interest on loans and advances will be costlier

31. Increased interest rates, as is existing in the economy at present will:

Answers: mean higher cost of raw materials

32. The sole authority to issue and manage currency in India:

Answers: RBI

33. In India, one- rupee coins are issued by:

Answers: Govt. of India

34. Fixed deposits and recurring deposits are:

Answers: repayable after an agreed period

35. When a bank returns a cheque unpaid, it is called:

Answers: dishonour of the cheque

36. What is ‘Demat Accounts’?

Answers: Accounts in which shares of various companies are traded in electronic form

37. When the rate of inflation increases:

Answers: purchasing power of money decreases

38. Banks in India are regulated under:

Answers: Banking Regulation Act, 1949

39. Banking sector falls under which of the following sectors?

Answers: Service Sector

40. ASBA scheme is related to the purchase of:

Answers: IPO

41. In a bank, which of the following are the usual types of accounts?

Answers: Current accounts, Savings bank accounts and Term deposit accounts

42. The most powerful tool used by the Reserve Bank of India to control inflation is to:

Answers: raise interest rates

43. NEFT and RTGS in banking terminology speak of:

Answers: electronic fund transfer from bank to bank

44. The ownership of public sector banks rests:

Answers: jointly with the Government of India and the shareholders from the public

45. If a cheque is postdated, the bank on which it is drawn:

Answers: will not honour the cheque before the date of the cheque

46. Regulator of Capital Market in India:

Answers: SEBI

47. First Indian Bank to introduce credit card:

Answers: Central Bank of India

48. RBI nationalized in:

Answers: 1949

49. Loans of very small amounts given to low income groups is called:

Answers: Micro Credit

50. RBI established in:

Answers: 1935