Banking Quiz for IBPS | SBI – 293
1.Which bank is not regulated by RBI?
a) State Bank of Sikkim
b) Punjab and Sind Bank
c) Central Bank of India
d) None of these
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Answer a) State Bank of Sikkim
State Bank of Sikkim is not regulated by Reserve Bank of India unlike other banks in India. State Bank of Sikkim is a state-owned banking institution headquartered at Gangtok, Sikkim, India
2.What is the minimum amount required to open a Fixed Deposit (FD)?
a) Rs.1000
b) Rs.500
c) Rs.100
d) None of these
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Answer a) Rs.1000
The minimum deposit required to open an FD varies from banks to banks and ranges between Rs. 1,000 to Rs. 10,000. There is no upper limit. For instance, the minimum amount that can be deposited in State Bank of India is Rs. 1,000. Initial deposit of Rs. 5,000 is required to open an FD in HDFC Bank.
3.The committee on Banking Regulations and Supervisory Practices which released the agreed frame work on international convergence of capital measures and capital standards in July 1988 is popularly known as _______.
a) Cooks Committee
b) Rao Committee
c) Basel Committee
d) None of these
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Answer c) Basel Committee
4.What are the facilities available to the customers through ATM –
a) Cash withdrawal subject to a predetermined limit per day
b) Cash deposit
c) details of certain number of transactions
d) all of the above
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Answer d) all of the above
An automated teller machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access most ATMs.
5.Which of the following is included in bancassurance?
a) Insurance policies issued by the banks in their
names
b) Selling by a bank the insurance policies of its
ancillary insurance company
c) Selling by a bank the insurance policies of any
insurance company
d) All the above
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Answer d) All the above
Bancassurance is an arrangement between a bank and an insurance company allowing the insurance company to sell its products to the bank’s client base. This partnership arrangement can be profitable for both companies. Banks earn additional revenue by selling insurance products, and insurance companies expand their customer bases without increasing their sales force or paying agent and broker commissions.
6.Expand CRAR in terms of banking sector-
a) Capital –to-Risk Asset Ratio
b) Core Risk Asset Return
c) Capital –to-Risk Asset Range
d) None of these
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Answer c) Capital –to-Risk Asset Range
Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank’s capital to its risk. National regulators track a bank’s CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.
7.How Commercial banks can regulate money supply?
a) Printing of one rupee notes
b) Augmentation of savings and time deposits
c) Creation of demand deposits
d) None of these
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Answer c) Creation of demand deposits
The Fed can influence the money supply by modifying reserve requirements, which generally refer to the amount of funds banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able to loan more money, which increases the overall supply of money in the economy.
8.What is the full form ‘HNI’ in banking ?
a) High Net-worth Individual
b) High Networked Individual
c) High Nuisance Individual
d) None of these
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Answer a) High Net-worth Individual
HNI is the financial term for a high net worth individual. High net worth individuals are generally those that have a diverse portfolio of assets and would benefit from professional management to secure and grow future wealth. The definition of HNI can vary based on each person’s own life experiences.
9.What is the ‘USP’ in a Savings Bank account of a Bank over another Bank?
a) Higher rate of interest
b) Low risk transaction
c) Banking channels and branches
d) None of these
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Answer a) Higher rate of interest
10. What is the full form of ‘PMI’?
a) Purchasing Managers Indian
b) Purchasing Managers Index
c) Prudential Managers Indian
d) None of these
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Answer b) Purchasing Managers Index
The Purchasing Managers’ Index (PMI) is an indicator of economic health for manufacturing and service sectors.
