Banking Awareness - MCQs with answers - Part II

Banking Awareness - MCQs with answers - Part II


1. What is the full form of NAV?

a) Net Actual Value
b) Net Annual Value
c) Net Asset Value
d) Net Average Value

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ANSWER: c) Net Asset Value

NAV is calculated by the Asset Management Company (AMC) at the end of every business day.



2. Who issues 'Commercial Papers'?

a) A Company to a Bank
b) Banks to Banks
c) Banks to Companies
d) Company to its suppliers

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ANSWER: b) Banks to Banks

Commercial Paper is one of the instruments through which Corporates raise debt from the market.



3. What is the full form of SWIFT?

a) Safe Window for Interbank Financial Transactions
b) Safe Window In case of Financial Transaction
c) Society for Worldwide Interbank Financial Telecommunication
d) Safe Window Institute For Transactions

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ANSWER: c) Society for Worldwide Interbank Financial Telecommunication

The Society for Worldwide Interbank Financial Telecommunication provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.



4. Which of the following is known as the concept of a standard contract to buy or sell a specified commodity at a certain date in future and at a market driven price?

a) Forward Contract
b) Futures Contract
c) Market Contract
d) Standard Contract

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ANSWER: b) Futures Contract

Their main purpose is to mitigate risk of default by either party in the intervening period.



5. Which one of the following set up core banking infrastructure for rural banks?

a) IBA
b) NABARD
c) RBI
d) SIDBI

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ANSWER: b) NABARD

National Bank for Agriculture and Rural Development has set up joint liability groups (JLG) of farmers to facilitate delivery of credit to farmers. Providing refinance to State Co-operative Banks, Scheduled Commercial Banks and Regional Rural Banks; co-ordinating the activities of different agencies in the field of agriculture and rural credit; improving absorptive capacity of credit delivery system are the major activities of NABARD.



6. Which organization provides credit history of the borrowers?

a) CIBIL
b) CII
c) FRBI
d) IRDA

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ANSWER: a) CIBIL

Credit Information Bureau Limited is the first Credit Information Company in India.




7. Which one of the following organisations has been set up to facilitate connectivity between the Bank's switches and their ATMs, and inter bank payment gateway for authentication and routing the payment details of various e-commerce transactions?

a) IBA
b) IDRBT
c) IRDA
d) SIDBI

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ANSWER: b) IDRBT

Institute for Development & Research in Banking Technology is a banking research institute established by Reserve Bank of India in 1996.



8. Which is a tool that helps RBI to stabilize money supply and prices of Government securities?

a) EOQ
b) EPQ
c) JIT
d) OMO

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ANSWER: d) OMO

An Open Market Operation is an activity by a central bank to buy or sell government bonds on the open market.



9. Who regulates the Mutual Funds in India?

a) FRBI
b) SEBI
c) SIDBI
d) RBI

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ANSWER: b) SEBI

The Securities and Exchange Board of India is the regulator for the securities market in India.



10. What is 'fiat money'?

a) The currency is backed by Government Guarantee
b) The currency is backed by tangible assets
c) The currency is backed by gold reserves
d) The currency is backed by budgetary support

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ANSWER: a) The currency is backed by Government Guarantee

A fiat-money currency generally loses value once the issuing government or central bank either loses the ability to or refuses to further guarantee its value.


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    Discussion

  • RE: Banking Awareness - MCQs with answers - Part II -Deepali Utekar (10/30/20)
  • Nice information for everyone, specially for bankers
  • RE: Banking Awareness - MCQs with answers - Part II -m d thaker (05/03/18)
  • very useful to banking staff as well as for general awareness to others
    thanks
  • RE: Banking Awareness - MCQs with answers - Part II -Gaurav Pal (02/26/15)
  • Thank u sir