BANKING QUIZ
1. Many a times we read in the newspapers that RBI has changed or revised a particular ratio/rate by a few basis points. What is basis point?
a) Ten per cent of one hundredth point
b) One hundredth of 10%
c) One hundredth of 1%
d) Ten per cent of 1000
e) None of these
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Answer c) One hundredth of 1%. Basis points – One hundredth of one percentage point (used chiefly in expressing differences of interest rates).
2. Which of the following indexes used as the key measure of inflation in India?
a) Consumer Price Index
b) Wholesale Price Index
c) Sensex and Nifty
d) Interest rate offered by banks on deposits
e)None of these
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Answer a) Consumer Price Index. The Central Bank of India (RBI) had adopted the new Consumer Price Index (CPI) as the key measure of inflation. Earlier, RBI had given more weightage to Wholesale Price Index (WPI) than CPI as the key measure of inflation for all policy purposes.
3. In Deposits Account “KYC” (Know Your Customer) has been implemented in 2002 as per directive of _________
a) IBA
b) Ministry of Finance
c) SEBI
d) RBI
e) IRDAA
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Answer d) RBI. KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. KYC has been implemented in 2002 as per directive of Reserve Bank of India.
4. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.
a) New Delhi
b) Bengaluru
c) Chennai
d) Kolkata
e) Mumbai
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Answer e)e) Mumbai. NIIF, proposed to be set up as a Trust, would raise debt to invest in the equity of infrastructure finance companies such as Indian Rail Finance Corporation (IRFC) and National Housing Bank (NHB).
5. What is the minimum amount required to open a Fixed Deposit (FD)?
a) Rs. 100
b) Rs. 1000
c) Rs. 500
d) Rs. 5000
e) No limit
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Answer b) Rs. 1000. A fixed deposit (FD) is also known as Term Deposit a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.
6.In CDR, “R” stands for ____.
a) Restructuring
b) Ratio
c) Receipt
d) Regulation
e) Reserve
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Answer a) Restructuring. Corporate Debt Restructuring (“CDR”) mechanism is a voluntary non statutory mechanism under which financial institutions and banks come together to restructure the debt of companies facing financial difficulties due to internal or external factors, in order to provide timely support to such companies.
7.The implementation of Goods and Services Tax (GST) is expected by
a) January 2016
b) April 2017
c) March 2016
d) January 2017
e) April 2016
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Answer e) April 2016. Implementation of Goods and Services Tax is expected by April 2016.
8.Who is the sole authority to issue and manage currency in India?
a) Government of India
b) Finance Ministry
c) Reserve Bank of India
d) State Bank of India
e) None of these
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Answer c) Reserve Bank of India. In terms of Section 22 of RBI is the sole authority for issue of currency in India.
9.With which of the following is SARFAESI Act 2002 related?
a) Regulation of foreign exchange
b) Fixation of interest rates
c) Acquisition of small banks
d) Recovery of bad loans
e) None of these
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Answer d) Recovery of bad loans. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)
10.Which among the following committee constituted on Payment Banks license?
a) R. Gandhi
b) Anand Sinha
c) Deepak Mohanty
d) None of these
e) Dr. Nachiket Mor
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Answer e) Dr. Nachiket Mor. Payment Banks applicant applications are analyzed and evaluated by an External Advisory Committee (EAC). The EAC Committee for Payment Banks is chaired by Dr. Nachiket Mor, Director, Central Board of the Reserve Bank of India.
