Banking Awareness - MCQs with answers - Part II1. What is the full form of NAV?
a) Net Actual Value
b) Net Annual Value
c) Net Asset Value
d) Net Average ValueView Answer / Hide Answer
2. Who issues 'Commercial Papers'?
ANSWER: c) Net Asset Value
NAV is calculated by the Asset Management Company (AMC) at the end of every business day.
a) A Company to a Bank
b) Banks to Banks
c) Banks to Companies
d) Company to its suppliersView Answer / Hide Answer
3. What is the full form of SWIFT?
ANSWER: b) Banks to Banks
Commercial Paper is one of the instruments through which Corporates raise debt from the market.
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 TransactionsView Answer / Hide Answer
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?
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.
a) Forward Contract
b) Futures Contract
c) Market Contract
d) Standard ContractView Answer / Hide Answer
5. Which one of the following set up core banking infrastructure for rural banks?
ANSWER: b) Futures Contract
Their main purpose is to mitigate risk of default by either party in the intervening period.
d) SIDBIView Answer / Hide Answer
6. Which organization provides credit history of the borrowers?
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.
d) IRDAView Answer / Hide Answer
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?
ANSWER: a) CIBIL
Credit Information Bureau Limited is the first Credit Information Company in India.
d) SIDBIView Answer / Hide Answer
8. Which is a tool that helps RBI to stabilize money supply and prices of Government securities?
ANSWER: b) IDRBT
Institute for Development & Research in Banking Technology is a banking research institute established by Reserve Bank of India in 1996.
d) OMOView Answer / Hide Answer
9. Who regulates the Mutual Funds in India?
ANSWER: d) OMO
An Open Market Operation is an activity by a central bank to buy or sell government bonds on the open market.
d) RBIView Answer / Hide Answer
10. What is 'fiat money'?
ANSWER: b) SEBI
The Securities and Exchange Board of India is the regulator for the securities market in India.
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 View Answer / Hide Answer
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.