COMPREHENSIVE BANKING KNOWLEDGE: QUIZ 1.

Created on March 22, 2025 By

skverma.verma29@gmail.com

COMPREHENSIVE BANKING KNOWLEDGE

COMPREHENSIVE BANKING KNOWLEDGE QUIZ 1

Category: REASONING QUIZ

1. ALL CARS ARE VEHICLES. SOME VEHICLES ARE EXPENSIVE. WHICH OF THE FOLLOWING IS TRUE?

A) NO VEHICLES ARE CARS

B) ALL CARS ARE EXPENSIVE

C) SOME EXPENSIVE VEHICLES ARE CARS

D) SOME VEHICLES ARE CARS

Category: REASONING QUIZ

2. SOME STUDENTS ARE HARDWORKING. ALL HARDWORKING STUDENTS ARE DISCIPLINED. WHICH OF THE FOLLOWING IS TRUE?

A) ALL DISCIPLINED STUDENTS ARE HARDWORKING

B) ALL STUDENTS ARE DISCIPLINED

C) SOME DISCIPLINED STUDENTS ARE NOT HARDWORKING

D) SOME STUDENTS ARE NOT DISCIPLINED

Category: COMPREHENSIVE BANKING KNOWLEDGE

1.

WHAT DOES THE 'NET INTEREST MARGIN (NIM)' REPRESENT?

A) THE COST OF FUNDS USED BY THE BANK

B) THE DIFFERENCE BETWEEN A BANK'S INTEREST INCOME AND INTEREST EXPENSES AS A PERCENTAGE OF ITS ASSETS

C) THE AVERAGE INTEREST RATE OFFERED ON SAVINGS ACCOUNTS

D) THE TOTAL INTEREST INCOME EARNED BY THE BANK

Category: COMPREHENSIVE BANKING KNOWLEDGE

2.

IN BANKING, WHAT IS THE 'SPREAD' REFERRING TO?

A) THE AREA IN WHICH A BANK OPERATES

B) DIFFERENCE BETWEEN A BANK’S LENDING RATE AND BORROWING RATE

C) THE RATE AT WHICH BANKS OFFER CREDIT

D) DIFFERENCE BETWEEN THE NATIONAL INTEREST RATE AND INFLATION RATE

Category: COMPREHENSIVE BANKING KNOWLEDGE

3.

WHAT IS 'FORWARD GUIDANCE' IN THE CONTEXT OF CENTRAL BANKING?

A) A POLICY FOR REGULATING THE GOLD RESERVES OF A COUNTRY

B) A MEASURE OF FUTURE CREDIT RATINGS OF FINANCIAL INSTITUTIONS

C) A METHOD TO INFLUENCE FUTURE ECONOMIC CONDITIONS BY COMMUNICATING THE CENTRAL BANK'S INTENDED POLICY MOVES

D) A TOOL FOR REGULATING INTERBANK LENDING RATES

Category: COMPREHENSIVE BANKING KNOWLEDGE

4.

WHICH OF THE FOLLOWING REFERS TO THE RATE AT WHICH COMMERCIAL BANKS BORROW FROM THE RESERVE BANK OF INDIA?

A) REPO RATE

B) STATUTORY LIQUIDITY RATIO

C) CASH RESERVE RATIO

D) BANK RATE

Category: COMPREHENSIVE BANKING KNOWLEDGE

5. WHICH OF THE FOLLOWING IS THE MAIN FEATURE OF 'CONSUMER BANKING'?

A) FACILITATING FOREIGN CURRENCY EXCHANGE

B) INVESTMENT BANKING ACTIVITIES

C) PROVIDING LOANS TO CORPORATIONS

D) SERVING THE PERSONAL BANKING NEEDS OF INDIVIDUALS

Category: COMPREHENSIVE BANKING KNOWLEDGE

6.

WHAT DOES THE ACRONYM 'RTGS' STAND FOR?

A) REAL-TIME GENERAL SETTLEMENT

B) REAL-TIME GUARANTEED SETTLEMENT

C) REAL-TIME GROSS SETTLEMENT

D) REGIONAL TIME GROSS SETTLEMENT

Category: COMPREHENSIVE BANKING KNOWLEDGE

7.

WHICH OF THE FOLLOWING IS NOT AN INSTRUMENT OF MONETARY POLICY?

A) OPEN MARKET OPERATIONS (OMO)

B) REFINANCE RATE

C) FOREIGN DIRECT INVESTMENT (FDI)

D) CASH RESERVE RATIO (CRR)

Category: COMPREHENSIVE BANKING KNOWLEDGE

8.

WHAT IS THE PRIMARY FUNCTION OF THE RESERVE BANK OF INDIA (RBI)?

A) MANAGING GOVERNMENT DEBT

B) ALL OF THE ABOVE

C) ISSUING CURRENCY NOTES

D) PROVIDING LOANS TO COMMERCIAL BANKS

Category: COMPREHENSIVE BANKING KNOWLEDGE

9.

WHICH TYPE OF LOAN IS PROVIDED BY BANKS FOR THE PURCHASE OF VEHICLES?

A) HOME LOAN

B) CAR LOAN

C) PERSONAL LOAN

D) EDUCATION LOAN

Category: COMPREHENSIVE BANKING KNOWLEDGE

10.

WHICH OF THE FOLLOWING IS A RISK ASSOCIATED WITH BANKING OPERATIONS?

A) ALL OF THE ABOVE

B) LIQUIDITY RISK

C) CREDIT RISK

D) OPERATIONAL RISK

Category: COMPREHENSIVE BANKING KNOWLEDGE

11.

WHAT IS 'DEBIT CARD'?

A) A CARD USED FOR WITHDRAWING MONEY FROM ATMS

B) A PREPAID CARD FOR SPECIFIC USES

C) A CARD ISSUED TO CUSTOMERS WITH CREDIT LIMITS

D) A CARD LINKED TO A BANK ACCOUNT USED TO MAKE PAYMENTS DIRECTLY FROM THE ACCOUNT

Category: COMPREHENSIVE BANKING KNOWLEDGE

12.

WHAT IS THE MEANING OF 'CENTRAL BANK' IN FINANCIAL TERMS?

A) A BANK THAT ACCEPTS DEPOSITS FROM FOREIGN NATIONALS

B) A BANK THAT PROVIDES BANKING SERVICES TO INDIVIDUALS AND BUSINESSES

C) A BANK THAT DEALS WITH INTERNATIONAL LOANS

D) A BANK THAT CONTROLS AND REGULATES THE BANKING SYSTEM OF A COUNTRY

Category: COMPREHENSIVE BANKING KNOWLEDGE

13.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF 'SHADOW BANKING'?

A) PUBLIC SECTOR BANKS

B) PRIVATE LENDING INSTITUTIONS THAT OPERATE OUTSIDE TRADITIONAL BANKING REGULATION

C) BANKS OPERATING UNDER THE SUPERVISION OF CENTRAL BANKS

D) GOVERNMENT-BACKED SAVINGS BONDS

Category: COMPREHENSIVE BANKING KNOWLEDGE

14.

WHICH OF THE FOLLOWING IS NOT A FUNCTION OF THE 'CENTRAL BANK'?

A) MANAGING THE COUNTRY’S CURRENCY AND MONEY SUPPLY

B) CONTROLLING INFLATION AND INTEREST RATES

C) ACCEPTING CUSTOMER DEPOSITS

D) ISSUING AND REGULATING CURRENCY

Category: COMPREHENSIVE BANKING KNOWLEDGE

15.

WHAT DOES THE TERM 'UNDERWRITING' MEAN IN BANKING?

A) THE PROCESS OF EVALUATING THE RISK OF OFFERING A LOAN OR INSURANCE

B) THE PROCESS OF INSURING A LOAN AGAINST DEFAULT

C) THE PROCESS OF PROVIDING FINANCIAL ADVICE

D) THE PROCESS OF WITHDRAWING MONEY FROM AN ACCOUNT

Category: COMPREHENSIVE BANKING KNOWLEDGE

16.

WHAT IS A 'MORTGAGE'?

A) A LOAN TAKEN OUT TO PURCHASE REAL ESTATE, SECURED BY THE PROPERTY

B) A SHORT-TERM LOAN SECURED BY AN ASSET

C) A TYPE OF GOVERNMENT BOND

D) A SAVINGS ACCOUNT OFFERING HIGHER INTEREST RATES

Category: COMPREHENSIVE BANKING KNOWLEDGE

17. WHICH OF THE FOLLOWING IS THE MAIN GOAL OF 'FINANCIAL INCLUSION'?

A) TO FOCUS ON HIGH-NET-WORTH INDIVIDUALS

B) TO PROVIDE BANKING SERVICES TO UNDERSERVED OR UNBANKED POPULATIONS

C) TO ELIMINATE TAXES ON BANKS

D) TO PROMOTE WEALTH INEQUALITY

Category: COMPREHENSIVE BANKING KNOWLEDGE

18.

WHICH IS THE MAIN DIFFERENCE BETWEEN A SAVINGS ACCOUNT AND A FIXED DEPOSIT?

A) SAVINGS ACCOUNTS ARE FOR LONG-TERM INVESTMENT, WHILE FIXED DEPOSITS ARE FOR SHORT-TERM INVESTMENT

B) FIXED DEPOSITS ARE RISKIER THAN SAVINGS ACCOUNTS

C) FIXED DEPOSITS REQUIRE A FIXED LOCK-IN PERIOD, WHEREAS SAVINGS ACCOUNTS DO NOT

D) SAVINGS ACCOUNTS OFFER HIGHER INTEREST RATES THAN FIXED DEPOSITS

Category: COMPREHENSIVE BANKING KNOWLEDGE

19.

WHICH OF THE FOLLOWING IS A KEY OBJECTIVE OF 'FINANCIAL INCLUSION'?

A) INCREASING THE INTEREST RATES ON LOANS

B) ENHANCING BANKING PROFITS

C) ENCOURAGING FOREIGN INVESTMENTS

D) ENSURING THAT BANKING SERVICES ARE AVAILABLE TO ALL INDIVIDUALS AND BUSINESSES, ESPECIALLY IN RURAL AREAS

Category: COMPREHENSIVE BANKING KNOWLEDGE

20.

THE 'CAPITAL ADEQUACY RATIO (CAR)' IS USED TO MEASURE THE:

A) ADEQUATE CAPITAL A BANK SHOULD MAINTAIN TO COVER RISKS

B) SPEED OF BANK TRANSACTIONS

C) EFFICIENCY OF A BANK IN MANAGING ITS ASSETS

D) PROFITABILITY OF A BANK

Category: COMPREHENSIVE BANKING KNOWLEDGE

21.

THE 'REAL ESTATE INVESTMENT TRUSTS (REITS)' PRIMARILY DEAL WITH:

A) STOCKS AND BONDS

B) INTERNATIONAL TRADE FINANCE

C) GOVERNMENT BONDS

D) REAL ESTATE PROPERTIES AND INVESTMENTS

Category: COMPREHENSIVE BANKING KNOWLEDGE

22.

WHICH OF THE FOLLOWING IS A FUNCTION OF THE 'DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION (DICGC)'?

A) INSURING BANK DEPOSITS

B) ISSUING CURRENCY NOTES

C) ENSURING THE SAFETY OF FINANCIAL MARKETS

D) PROVIDING LOANS TO SMALL BUSINESSES

Category: COMPREHENSIVE BANKING KNOWLEDGE

23.

WHAT IS 'DEBT FINANCING'?

A) RAISING CAPITAL BY INCREASING THE VALUE OF ASSETS

B) RAISING CAPITAL BY SELLING SHARES

C) RAISING CAPITAL BY BORROWING FUNDS FROM BANKS OR ISSUING BONDS

D) RAISING FUNDS THROUGH DONATIONS

Category: COMPREHENSIVE BANKING KNOWLEDGE

24. WHAT IS THE PRIMARY FUNCTION OF THE 'MONETARY AUTHORITY' IN A COUNTRY?

A) TO OFFER LOANS TO BUSINESSES

B) TO COLLECT TAXES

C) TO REGULATE THE BANKING SYSTEM AND CONTROL THE MONEY SUPPLY

D) TO PRINT CURRENCY

Category: COMPREHENSIVE BANKING KNOWLEDGE

25.

WHICH OF THE FOLLOWING IS TRUE ABOUT 'MICROFINANCE'?

A) IT IS A TYPE OF INSURANCE PRODUCT OFFERED BY BANKS

B) IT FOCUSES ON LARGE BUSINESSES AND CORPORATIONS

C) IT IS REGULATED ONLY BY INTERNATIONAL BODIES, NOT LOCAL GOVERNMENTS

D) IT INVOLVES PROVIDING SMALL LOANS TO INDIVIDUALS IN UNDERDEVELOPED AREAS TO PROMOTE ECONOMIC GROWTH

Category: COMPREHENSIVE BANKING KNOWLEDGE

26. WHICH OF THE FOLLOWING REFERS TO 'BANCASSURANCE'?

A) INSURANCE COMPANIES TAKING OVER BANKS

B) BANKS OFFERING INSURANCE PRODUCTS ALONGSIDE THEIR BANKING SERVICES

C) BANKS PROVIDING LOANS TO INSURANCE COMPANIES

D) BANKS OFFERING ONLY HOME LOAN SERVICES

Category: COMPREHENSIVE BANKING KNOWLEDGE

27.

WHAT IS THE PURPOSE OF THE 'LIQUIDITY COVERAGE RATIO (LCR)' IN BANKING?

A) TO ENSURE THAT BANKS HAVE ENOUGH HIGH-QUALITY LIQUID ASSETS TO COVER SHORT-TERM OBLIGATIONS

B) TO DETERMINE THE INTEREST RATES ON LOANS

C) TO REGULATE THE LOAN-TO-VALUE RATIO OF MORTGAGE LOANS

D) TO MANAGE THE FOREIGN EXCHANGE RESERVES

Category: COMPREHENSIVE BANKING KNOWLEDGE

28.

WHICH OF THE FOLLOWING DOCUMENTS IS REQUIRED TO OPEN A SAVINGS ACCOUNT IN INDIA?

A) ALL OF THE ABOVE

B) PAN CARD

C) AADHAR CARD

D) PASSPORT-SIZED PHOTOGRAPH

Category: COMPREHENSIVE BANKING KNOWLEDGE

29.

THE 'BASEL III' GUIDELINES ARE ASSOCIATED WITH:

A) BANKING CAPITAL REQUIREMENTS

B) PERSONAL LOAN INTEREST RATES

C) INTERNATIONAL TRADE POLICIES

D) ELECTRONIC BANKING SECURITY MEASURES

Category: COMPREHENSIVE BANKING KNOWLEDGE

30.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF 'NON-PERFORMING ASSET (NPA)'?

A) A LOAN THAT IS REPAID BEFORE ITS DUE DATE

B) A LOAN THAT HAS NOT BEEN REPAID FOR MORE THAN 90 DAYS

C) A DEPOSIT THAT IS WITHDRAWN EARLY

D) A FIXED DEPOSIT WITH NO MATURITY DATE

Category: COMPREHENSIVE BANKING KNOWLEDGE

31. WHAT IS THE MINIMUM BALANCE REQUIREMENT FOR A SAVINGS ACCOUNT IN MOST INDIAN BANKS?

A) ₹50,000

B) ₹1,000

C) ₹10,000

D) ₹500

Category: COMPREHENSIVE BANKING KNOWLEDGE

32.

WHAT IS THE MAXIMUM LIMIT FOR E-COMMERCE TRANSACTIONS THROUGH 'UPI' (UNIFIED PAYMENTS INTERFACE) IN INDIA?

A) ₹10,000

B) ₹1,00,000

C) ₹2,00,000

D) ₹50,000

Category: COMPREHENSIVE BANKING KNOWLEDGE

33.

THE TERM 'LIQUIDITY' IN BANKING REFERS TO:

A) THE NUMBER OF BRANCHES A BANK OPERATES

B) THE TOTAL CASH RESERVE A BANK HOLDS

C) THE SPEED AT WHICH A LOAN CAN BE GRANTED

D) THE ABILITY TO EASILY CONVERT ASSETS INTO CASH

Category: COMPREHENSIVE BANKING KNOWLEDGE

34. WHICH OF THE FOLLOWING IS AN EXAMPLE OF 'NON-BANKING FINANCIAL COMPANIES' (NBFCS)?

A) BANKS THAT ACCEPT DEPOSITS

B) CENTRAL BANKS

C) INVESTMENT FIRMS THAT DO NOT OFFER TRADITIONAL BANKING SERVICES

D) INSURANCE COMPANIES

Category: COMPREHENSIVE BANKING KNOWLEDGE

35.

WHAT IS THE 'CASH RESERVE RATIO (CRR)' IN BANKING?

A) THE TOTAL AMOUNT OF CAPITAL A BANK HOLDS

B) THE PROPORTION OF A BANK’S TOTAL DEPOSITS THAT IT MUST KEEP AS RESERVES WITH THE CENTRAL BANK

C) THE PERCENTAGE OF A BANK’S LENDING PORTFOLIO

D) THE INTEREST RATE AT WHICH BANKS BORROW FROM OTHER BANKS

Category: COMPREHENSIVE BANKING KNOWLEDGE

36.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A 'RETAIL BANKING' SERVICE?

A) OFFERING SAVINGS ACCOUNTS AND MORTGAGES TO INDIVIDUALS

B) PROVIDING CORPORATE LOANS TO BUSINESSES

C) ISSUING GOVERNMENT BONDS

D) MANAGING THE CENTRAL BANK’S RESERVES

Category: COMPREHENSIVE BANKING KNOWLEDGE

37.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF AN UNSECURED LOAN?

A) GOLD LOAN

B) HOME LOAN

C) PERSONAL LOAN

D) CAR LOAN

Category: COMPREHENSIVE BANKING KNOWLEDGE

38.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A 'MONEY MARKET INSTRUMENT'?

A) REAL ESTATE

B) GOVERNMENT BONDS

C) TREASURY BILLS

D) SHARES

Category: COMPREHENSIVE BANKING KNOWLEDGE

39.

WHICH OF THE FOLLOWING IS A TYPE OF 'OVERDRAFT' FACILITY IN BANKING?

A) A SHORT-TERM INVESTMENT OPTION

B) AN AGREEMENT THAT ALLOWS A CUSTOMER TO WITHDRAW MORE MONEY THAN AVAILABLE IN THEIR CURRENT ACCOUNT

C) A LOAN GRANTED FOR PURCHASING REAL ESTATE

D) A TYPE OF LOAN SECURED BY FIXED DEPOSITS

Category: COMPREHENSIVE BANKING KNOWLEDGE

40.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A 'LIQUID ASSET' FOR A BANK?

A) REAL ESTATE PROPERTY

B) GOVERNMENT SECURITIES

C) LONG-TERM LOANS

D) EQUIPMENT

Category: COMPREHENSIVE BANKING KNOWLEDGE

41. WHAT IS THE PRIMARY PURPOSE OF THE BASEL III FRAMEWORK?

A) TO PROMOTE INTERNATIONAL TRADE

B) TO MONITOR INTEREST RATES ACROSS BANKS

C) TO REGULATE THE EXCHANGE RATE OF CURRENCY

D) TO STRENGTHEN THE GLOBAL BANKING SYSTEM

Category: COMPREHENSIVE BANKING KNOWLEDGE

42.

WHAT DOES 'GNP' STAND FOR IN ECONOMIC TERMS?

A) GROSS NATIONAL PRICING

B) GROSS NATIONAL PRODUCT

C) GROSS NATIONAL PROFIT

D) GOVERNMENT NATIONAL PROGRAM

Category: COMPREHENSIVE BANKING KNOWLEDGE

43.

WHICH OF THE FOLLOWING IS THE MAIN ROLE OF THE 'RESERVE BANK OF INDIA' (RBI)?

A) TO ISSUE CURRENCY AND REGULATE MONETARY POLICY

B) TO FACILITATE INTERNATIONAL TRADE

C) TO PROVIDE LOANS TO BUSINESSES

D) TO MANAGE THE STOCK MARKET

Category: COMPREHENSIVE BANKING KNOWLEDGE

44.

WHAT IS THE FULL FORM OF 'AADHAAR'?

A) A NATIONAL ELECTION CARD FOR CITIZENS

B) A CERTIFICATE FOR OPENING BANK ACCOUNTS

C) A GOVERNMENT-ISSUED HEALTH INSURANCE CARD

D) A UNIQUE IDENTIFICATION NUMBER FOR INDIVIDUALS

Category: COMPREHENSIVE BANKING KNOWLEDGE

45.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF 'SHORT-TERM CREDIT'?

A) CAR LOANS WITH A 5-YEAR TERM

B) HOME MORTGAGE LOANS

C) CORPORATE BONDS WITH A 10-YEAR MATURITY

D) PERSONAL LOANS WITH A REPAYMENT PERIOD OF LESS THAN A YEAR

Category: COMPREHENSIVE BANKING KNOWLEDGE

46.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A 'COMMODITY EXCHANGE'?

A) NSE (NATIONAL STOCK EXCHANGE)

B) SEBI (SECURITIES AND EXCHANGE BOARD OF INDIA)

C) RBI (RESERVE BANK OF INDIA)

D) MCX (MULTI COMMODITY EXCHANGE)

Category: COMPREHENSIVE BANKING KNOWLEDGE

47.

WHICH OF THE FOLLOWING IS A CHARACTERISTIC OF 'ISLAMIC BANKING'?

A) BANKS CHARGE INTEREST ON LOANS

B) BANKS PROVIDE LOANS ONLY FOR SECULAR PURPOSES

C) BANKS CANNOT CHARGE INTEREST, AND THEY FOLLOW THE PRINCIPLE OF PROFIT-SHARING

D) BANKS PROVIDE LOANS BASED ON FIXED COLLATERAL VALUES

Category: COMPREHENSIVE BANKING KNOWLEDGE

48.

WHICH OF THE FOLLOWING IS NOT A FUNCTION OF A CENTRAL BANK?

A) SUPERVISE COMMERCIAL BANKS

B) CONTROL INFLATION

C) ISSUE CURRENCY

D) GRANT LOANS TO THE PUBLIC

Category: COMPREHENSIVE BANKING KNOWLEDGE

49.

WHAT IS THE 'MAIN FUNCTION' OF A COMMERCIAL BANK?

A) TO ACCEPT DEPOSITS AND PROVIDE LOANS

B) TO MANAGE MONETARY POLICY

C) TO ISSUE GOVERNMENT BONDS

D) TO REGULATE THE CURRENCY OF A COUNTRY

Category: COMPREHENSIVE BANKING KNOWLEDGE

50.

WHAT IS THE 'CASH MANAGEMENT SYSTEM (CMS)' IN BANKING?

A) A METHOD FOR MANAGING FOREIGN EXCHANGE TRANSACTIONS

B) A SYSTEM FOR CONTROLLING THE INTEREST RATES ON SAVINGS ACCOUNTS

C) A SYSTEM FOR MANAGING THE PHYSICAL CASH RESERVES IN BANK BRANCHES

D) A SYSTEM FOR MANAGING A COMPANY’S COLLECTIONS AND PAYMENTS EFFICIENTLY

Category: COMPREHENSIVE BANKING KNOWLEDGE

51.

WHICH OF THE FOLLOWING IS A CHARACTERISTIC OF 'CENTRAL BANK DIGITAL CURRENCY (CBDC)'?

A) IT IS ISSUED BY A CENTRAL BANK IN DIGITAL FORM

B) IT OPERATES WITHOUT A CENTRAL AUTHORITY

C) IT IS ONLY AVAILABLE IN SPECIFIC REGIONS

D) IT IS A FORM OF CRYPTOCURRENCY

Category: COMPREHENSIVE BANKING KNOWLEDGE

52.

WHICH OF THE FOLLOWING IS A MAJOR ADVANTAGE OF 'INTERNET BANKING'?

A) REQUIRES NO INTERNET CONNECTION

B) ACCESS TO BANKING SERVICES ANYTIME AND ANYWHERE

C) LIMITED TRANSACTION FEES

D) ONLY AVAILABLE FOR PERSONAL ACCOUNTS

Category: COMPREHENSIVE BANKING KNOWLEDGE

53.

WHICH OF THE FOLLOWING TYPES OF INSURANCE IS COMMONLY ASSOCIATED WITH BANKING?

A) HEALTH INSURANCE

B) LIFE INSURANCE

C) PROPERTY INSURANCE

D) ALL OF THE ABOVE

Category: COMPREHENSIVE BANKING KNOWLEDGE

54.

WHAT IS A 'HEDGE' IN FINANCIAL TERMS?

A) A STRATEGY USED TO REDUCE RISK IN INVESTMENTS

B) A TYPE OF SHORT-TERM LOAN

C) A FIXED INCOME SECURITY

D) A RISK-FREE INVESTMENT

Category: COMPREHENSIVE BANKING KNOWLEDGE

55.

WHICH OF THE FOLLOWING IS A TOOL USED BY THE RESERVE BANK OF INDIA TO CONTROL INFLATION?

A) CREDIT CONTROL

B) OPEN MARKET OPERATIONS

C) ALL OF THE ABOVE

D) REPO RATE

Category: COMPREHENSIVE BANKING KNOWLEDGE

56.

WHAT IS THE 'REPO RATE'?

A) THE RATE AT WHICH THE GOVERNMENT LENDS MONEY TO COMMERCIAL BANKS

B) THE RATE AT WHICH COMMERCIAL BANKS LEND MONEY TO CUSTOMERS

C) THE RATE AT WHICH COMMERCIAL BANKS BORROW MONEY FROM THE CENTRAL BANK

D) THE RATE AT WHICH BANKS LEND MONEY TO FOREIGN INSTITUTIONS

Category: COMPREHENSIVE BANKING KNOWLEDGE

57.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A 'SYSTEMICALLY IMPORTANT BANK'?

A) A PRIVATE BANK WITH NO INTERNATIONAL OPERATIONS

B) A LARGE MULTINATIONAL BANK WHOSE FAILURE COULD TRIGGER A GLOBAL FINANCIAL CRISIS

C) A GOVERNMENT-OWNED BANK THAT ONLY DEALS WITH AGRICULTURE LOANS

D) A SMALL COMMUNITY BANK SERVING ONLY LOCAL CUSTOMERS

Category: COMPREHENSIVE BANKING KNOWLEDGE

58.

WHICH OF THE FOLLOWING IS A TYPE OF 'FIXED INCOME SECURITY'?

A) BONDS

B) SHARES

C) REAL ESTATE

D) COMMODITIES

Category: COMPREHENSIVE BANKING KNOWLEDGE

59.

WHICH OF THE FOLLOWING IS NOT A TYPE OF COMMERCIAL BANK?

A) PUBLIC SECTOR BANK

B) FOREIGN BANK

C) PRIVATE SECTOR BANK

D) CENTRAL BANK

Category: COMPREHENSIVE BANKING KNOWLEDGE

60.

WHICH OF THE FOLLOWING REFERS TO THE 'LOAN TO VALUE' RATIO?

A) THE RATIO OF A LOAN AMOUNT TO THE VALUE OF THE COLLATERAL

B) THE RATIO OF INTEREST CHARGED TO THE PRINCIPAL AMOUNT

C) THE RATIO OF LOAN TO INCOME OF THE BORROWER

D) THE RATIO OF A BANK’S LOAN PORTFOLIO TO ITS NET WORTH

Category: COMPREHENSIVE BANKING KNOWLEDGE

61.

WHICH OF THE FOLLOWING IS A FUNCTION OF A COMMERCIAL BANK?

A) ACCEPTING DEPOSITS AND GRANTING LOANS

B) MANAGING GOVERNMENT RESERVES

C) ISSUING CURRENCY

D) FORMULATING MONETARY POLICY

Category: COMPREHENSIVE BANKING KNOWLEDGE

62.

THE 'SWIFT CODE' IS USED FOR:

A) DETERMINING THE INTEREST RATE ON A LOAN

B) CREATING A NEW BANK ACCOUNT

C) IDENTIFYING FINANCIAL INSTITUTIONS INVOLVED IN INTERNATIONAL TRANSACTIONS

D) CHECKING THE CREDIT SCORE OF AN INDIVIDUAL

Category: COMPREHENSIVE BANKING KNOWLEDGE

63.

WHAT IS 'SECURITIES TRANSACTION TAX (STT)' IN INDIA?

A) TAX LEVIED ON TRANSACTIONS IN THE SECURITIES MARKET

B) TAX PAID ON THE INTEREST EARNED FROM FIXED DEPOSITS

C) TAX PAID ON LOANS PROVIDED BY BANKS

D) TAX PAID ON PROFITS FROM THE SALE OF GOVERNMENT BONDS

Category: COMPREHENSIVE BANKING KNOWLEDGE

64.

WHICH OF THE FOLLOWING IS THE CORRECT ORDER FOR THE STEPS INVOLVED IN THE PROCESS OF CHEQUE CLEARING?

A) SETTLEMENT, PRESENTATION, PROCESSING

B) PRESENTATION, PROCESSING, SETTLEMENT

C) PROCESSING, PRESENTATION, SETTLEMENT

D) PRESENTATION, SETTLEMENT, PROCESSING

Category: COMPREHENSIVE BANKING KNOWLEDGE

65.

WHICH OF THE FOLLOWING IS A MAJOR ROLE OF THE COMMERCIAL BANKS?

A) FACILITATING INTERNATIONAL TRADE

B) MANAGING GOVERNMENT RESERVES

C) CREATING MONETARY POLICY

D) ACCEPTING DEPOSITS AND GRANTING LOANS

Category: COMPREHENSIVE BANKING KNOWLEDGE

66.

WHICH OF THE FOLLOWING IS NOT A FEATURE OF A 'DEMAND DRAFT'?

A) IT CAN BE ISSUED WITHOUT THE REQUIREMENT OF AN ACCOUNT

B) IT CAN BE USED TO TRANSFER MONEY ACROSS BRANCHES

C) IT IS A PREPAID INSTRUMENT

D) IT IS NOT A NEGOTIABLE INSTRUMENT

Category: COMPREHENSIVE BANKING KNOWLEDGE

67.

WHICH OF THE FOLLOWING IS A CHARACTERISTIC OF A 'NPA' (NON-PERFORMING ASSET)?

A) IT REFERS TO A LOAN THAT HAS BEEN FULLY REPAID

B) IT IS A PERFORMING LOAN THAT EARNS REGULAR INTEREST

C) IT REFERS TO AN ASSET WHOSE INTEREST AND PRINCIPAL PAYMENTS ARE OVERDUE FOR A SPECIFIC PERIOD

D) IT IS THE SAME AS A DEPOSIT

Category: COMPREHENSIVE BANKING KNOWLEDGE

68.

WHICH OF THE FOLLOWING IS A TYPE OF 'FOREIGN EXCHANGE RISK'?

A) THE RISK OF A CUSTOMER DEFAULTING ON A LOAN

B) THE RISK OF FRAUD AND CYBERATTACKS ON BANKING SYSTEMS

C) THE RISK OF INTEREST RATE CHANGES IMPACTING DOMESTIC OPERATIONS

D) THE RISK OF CURRENCY VALUE FLUCTUATIONS AFFECTING INTERNATIONAL TRADE

Category: COMPREHENSIVE BANKING KNOWLEDGE

69.

THE TERM 'SOVEREIGN RISK' REFERS TO:

A) THE RISK OF A COMPANY'S STOCK PRICE FALLING

B) THE RISK ASSOCIATED WITH THE FAILURE OF A GOVERNMENT TO REPAY ITS DEBT

C) THE RISK OF CURRENCY DEVALUATION

D) THE RISK OF BANK INSOLVENCY

Category: COMPREHENSIVE BANKING KNOWLEDGE

70.

WHAT IS 'DIGITAL BANKING'?

A) A TYPE OF BANKING THAT RESTRICTS CUSTOMERS TO PAPER-BASED TRANSACTIONS

B) BANKING THROUGH TELEPHONES ONLY

C) BANKING THAT USES ONLY PHYSICAL BRANCHES

D) BANKING CONDUCTED ONLINE THROUGH ELECTRONIC DEVICES

Category: COMPREHENSIVE BANKING KNOWLEDGE

71.

WHICH OF THE FOLLOWING IS NOT A METHOD OF 'BANKING FRAUD'?

A) DIRECT DEPOSIT

B) IDENTITY THEFT

C) TRANSACTION REVERSAL

D) PHISHING

Category: COMPREHENSIVE BANKING KNOWLEDGE

72.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF AN INVESTMENT BANKING SERVICE?

A) PROVIDING PERSONAL LOANS

B) FOREIGN EXCHANGE TRADING

C) ISSUING SHARES AND SECURITIES

D) PROVIDING SAVINGS ACCOUNTS

Category: COMPREHENSIVE BANKING KNOWLEDGE

73.

WHAT IS THE 'STATUTORY LIQUIDITY RATIO (SLR)' IN BANKING?

A) THE MINIMUM CAPITAL BANKS MUST HAVE TO OPERATE

B) THE AMOUNT OF CASH A BANK MUST HOLD AS A RESERVE

C) THE PERCENTAGE OF A BANK’S NET DEMAND AND TIME LIABILITIES TO BE MAINTAINED IN LIQUID ASSETS

D) THE MINIMUM AMOUNT OF GOLD RESERVES THAT A BANK MUST HOLD

Category: COMPREHENSIVE BANKING KNOWLEDGE

74.

WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF A 'RETAIL BANKING' SERVICE?

A) CREDIT CARDS

B) PERSONAL LOANS AND MORTGAGES

C) SAVINGS AND CURRENT ACCOUNTS

D) FOREIGN CURRENCY TRADING

Category: COMPREHENSIVE BANKING KNOWLEDGE

75.

WHICH OF THE FOLLOWING IS A 'PUBLIC SECTOR BANK' IN INDIA?

A) ICICI BANK

B) HDFC BANK

C) AXIS BANK

D) STATE BANK OF INDIA (SBI)

Category: COMPREHENSIVE BANKING KNOWLEDGE

76.

WHICH OF THE FOLLOWING IS TRUE ABOUT 'REAL-TIME GROSS SETTLEMENT (RTGS)'?

A) IT ALLOWS BULK PAYMENTS FOR LARGE TRANSACTIONS

B) IT IS USED FOR INTERNATIONAL TRANSACTIONS ONLY

C) IT IS ONLY AVAILABLE DURING BANKING HOURS

D) IT IS USED FOR TRANSFERRING MONEY IN REAL TIME

Category: COMPREHENSIVE BANKING KNOWLEDGE

77.

THE 'PRIORITY SECTOR LENDING' BY BANKS REFERS TO LENDING TO:

A) FOREIGN INVESTORS

B) ESSENTIAL INDUSTRIES SUCH AS DEFENSE

C) LARGE CORPORATE SECTORS

D) CERTAIN UNDER-SERVED SECTORS OF THE ECONOMY SUCH AS AGRICULTURE, MSMES, AND EDUCATION

Category: COMPREHENSIVE BANKING KNOWLEDGE

78. WHICH OF THE FOLLOWING IS THE MAIN FUNCTION OF 'MOBILE WALLETS'?

A) TO STORE MONEY AND MAKE DIGITAL PAYMENTS

B) TO PROVIDE LOANS TO INDIVIDUALS

C) TO OFFER INSURANCE SERVICES

D) TO ENABLE LARGE FUND TRANSFERS

Category: COMPREHENSIVE BANKING KNOWLEDGE

79.

WHICH OF THE FOLLOWING IS A NON-BANKING FINANCIAL COMPANY (NBFC)?

A) STATE BANK OF INDIA

B) RESERVE BANK OF INDIA

C) LIC HOUSING FINANCE LTD.

D) ICICI BANK

Category: COMPREHENSIVE BANKING KNOWLEDGE

80.

WHAT DOES 'KYC' STAND FOR IN BANKING?

A) KNOW YOUR CLIENT

B) KEEP YOUR CLIENT

C) KNOW YOUR CUSTOMER

D) KEEP YOUR CUSTOMER

Category: COMPREHENSIVE BANKING KNOWLEDGE

81. WHICH OF THE FOLLOWING IS A TYPE OF 'DEMAND DEPOSIT'?

A) RECURRING DEPOSIT

B) CURRENT ACCOUNT

C) SAVINGS ACCOUNT

D) FIXED DEPOSIT

Category: COMPREHENSIVE BANKING KNOWLEDGE

82.

WHICH OF THE FOLLOWING IS A TYPE OF 'DERIVATIVES'?

A) OPTIONS

B) CURRENCY

C) BONDS

D) STOCKS

Category: COMPREHENSIVE BANKING KNOWLEDGE

83.

WHAT IS THE FULL FORM OF 'MUDRA' IN THE CONTEXT OF SMALL BUSINESS LOANS IN INDIA?

A) MULTIPLE UNIT DEVELOPMENT AND REFINANCE AGENCY

B) MICRO UNIT DEVELOPMENT AND RISK AGENCY

C) MICRO UNITS DEVELOPMENT AND REFINANCE AGENCY

D) MICRO-UNIT DEVELOPMENT AND REGULATORY AGENCY

Category: COMPREHENSIVE BANKING KNOWLEDGE

84.

WHAT IS THE FULL FORM OF 'NPA' IN BANKING?

A) NON-PAYMENT ACCOUNT

B) NATIONAL PAYMENT AUTHORITY

C) NON-PERFORMING ASSET

D) NEW PUBLIC ACCOUNT

Category: COMPREHENSIVE BANKING KNOWLEDGE

85.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A 'SHORT-TERM DEBT INSTRUMENT'?

A) LONG-TERM CORPORATE BONDS

B) GOVERNMENT BONDS WITH A MATURITY OF 15 YEARS

C) TREASURY BILLS WITH A MATURITY OF LESS THAN 1 YEAR

D) FIXED DEPOSITS FOR 5 YEARS

Category: COMPREHENSIVE BANKING KNOWLEDGE

86.

WHAT IS THE PRIMARY FUNCTION OF 'BASEL II' IN BANKING?

A) IT SETS GUIDELINES FOR INTERNATIONAL CAPITAL STANDARDS

B) IT SUPERVISES THE LOAN LIMITS OF INTERNATIONAL BANKS

C) IT ENSURES THE SAFETY OF ELECTRONIC BANKING TRANSACTIONS

D) IT GOVERNS THE GOVERNANCE OF BANKS GLOBALLY

Category: COMPREHENSIVE BANKING KNOWLEDGE

87.

WHAT IS 'MONETARY POLICY'?

A) POLICIES FOR REGULATING TRADE TARIFFS

B) POLICIES IMPLEMENTED BY THE GOVERNMENT FOR FISCAL MANAGEMENT

C) POLICIES SET BY THE CENTRAL BANK TO REGULATE MONEY SUPPLY AND CONTROL INFLATION

D) POLICIES FOR CONTROLLING FOREIGN INVESTMENTS

Category: COMPREHENSIVE BANKING KNOWLEDGE

88. THE 'FISCAL DEFICIT' IN A COUNTRY IS:

A) THE AMOUNT THE GOVERNMENT BORROWS FROM INTERNATIONAL SOURCES

B) THE TOTAL AMOUNT OF NATIONAL DEBT

C) THE DIFFERENCE BETWEEN GOVERNMENT EXPENDITURE AND ITS REVENUE

D) THE TOTAL VALUE OF NATIONAL SAVINGS

Category: COMPREHENSIVE BANKING KNOWLEDGE

89.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF 'LONG-TERM DEBT'?

A) A 1-YEAR CORPORATE BOND

B) A 30-DAY OVERDRAFT

C) A 3-MONTH LOAN FROM A COMMERCIAL BANK

D) A 10-YEAR GOVERNMENT BOND

Category: COMPREHENSIVE BANKING KNOWLEDGE

90.

WHICH OF THE FOLLOWING IS TRUE REGARDING A 'CHEQUE' IN BANKING?

A) A CHEQUE CAN BE TRANSFERRED BY ENDORSEMENT AND DELIVERY

B) BOTH A AND B

C) A CHEQUE IS AN UNCONDITIONAL ORDER TO PAY MONEY FROM THE DRAWER’S ACCOUNT

D) A CHEQUE CAN ONLY BE ISSUED FOR FIXED AMOUNTS

Category: COMPREHENSIVE BANKING KNOWLEDGE

91.

WHAT IS THE MAIN OBJECTIVE OF 'MONETARY POLICY'?

A) TO REDUCE GOVERNMENT SPENDING

B) TO MANAGE THE FISCAL DEFICIT

C) TO REGULATE THE PRICES OF COMMODITIES

D) TO CONTROL INFLATION AND STABILIZE THE CURRENCY

Category: COMPREHENSIVE BANKING KNOWLEDGE

92.

WHAT IS THE FULL FORM OF 'RTGS'?

A) REAL TIME GLOBAL SETTLEMENT

B) REGIONAL TIME GROSS SETTLEMENT

C) REAL TIME GROSS SETTLEMENT

D) REAL TRANSACTION GROSS SETTLEMENT

Category: COMPREHENSIVE BANKING KNOWLEDGE

93.

WHAT IS THE FULL FORM OF 'NEFT' IN BANKING?

A) NATIONAL EMERGENCY FUND TRANSFER

B) NATIONAL EXPORT FUNDS TRANSFER

C) NEW ELECTRONIC FUNDS TRANSACTION

D) NATIONAL ELECTRONIC FUNDS TRANSFER

Category: COMPREHENSIVE BANKING KNOWLEDGE

94.

THE 'REPO RATE' IS THE RATE AT WHICH:

A) GOVERNMENT BORROWS MONEY FROM THE PUBLIC

B) BANKS CHARGE INTEREST ON LOANS

C) BANKS LEND TO EACH OTHER

D) THE RESERVE BANK OF INDIA LENDS TO COMMERCIAL BANKS

Category: COMPREHENSIVE BANKING KNOWLEDGE

95.

WHICH OF THE FOLLOWING IS A MEASURE OF THE FINANCIAL HEALTH OF A BANK?

A) CREDIT RATINGS

B) PROFIT MARGIN

C) ALL OF THE ABOVE

D) RETURN ON ASSETS (ROA)

Category: COMPREHENSIVE BANKING KNOWLEDGE

96.

WHAT IS 'KYC' IN BANKING?

A) KEEP YOUR CASH

B) KNOW YOUR CUSTOMER

C) KEEP YOUR CHECKBOOK

D) KNOW YOUR CREDIT

Category: COMPREHENSIVE BANKING KNOWLEDGE

97.

THE 'BANKING OMBUDSMAN' IS RESPONSIBLE FOR:

A) MANAGING DISPUTES BETWEEN CUSTOMERS AND COMMERCIAL BANKS

B) PROVIDING LOANS TO FARMERS

C) MONITORING THE FUNCTIONING OF CENTRAL BANKS

D) REGULATING BANK MERGERS AND ACQUISITIONS

Category: COMPREHENSIVE BANKING KNOWLEDGE

98.

WHAT DOES 'SWIFT' STAND FOR IN BANKING?

A) SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION

B) SOCIETY FOR WORLDWIDE INSTITUTIONAL FINANCIAL TRANSFERS

C) SECURE WORLDWIDE INTERBANK FUND TRANSFER SYSTEM

D) SECURE WORLDWIDE INTERNATIONAL FINANCIAL TRANSACTIONS

Category: COMPREHENSIVE BANKING KNOWLEDGE

99.

WHICH OF THE FOLLOWING BEST DESCRIBES THE 'BANK RATE'?

A) THE RATE AT WHICH RBI LENDS TO COMMERCIAL BANKS FOR SHORT-TERM LOANS

B) THE RATE AT WHICH RBI BUYS AND SELLS GOVERNMENT SECURITIES

C) THE RATE AT WHICH COMMERCIAL BANKS LEND TO OTHER BANKS FOR OVERNIGHT LOANS

D) THE RATE AT WHICH COMMERCIAL BANKS LEND TO CUSTOMERS

Category: COMPREHENSIVE BANKING KNOWLEDGE

100.

WHICH OF THE FOLLOWING IS THE MAIN FUNCTION OF THE 'STOCK EXCHANGE'?

A) TO ISSUE GOVERNMENT BONDS

B) TO MANAGE SAVINGS ACCOUNTS

C) TO PROVIDE A PLATFORM FOR BUYING AND SELLING SHARES AND SECURITIES

D) TO LEND MONEY TO SMALL BUSINESSES

Category: COMPREHENSIVE BANKING KNOWLEDGE

101.

WHAT IS THE PRIMARY DIFFERENCE BETWEEN 'SECURED' AND 'UNSECURED' LOANS?

A) SECURED LOANS ARE ONLY AVAILABLE TO GOVERNMENT EMPLOYEES

B) UNSECURED LOANS REQUIRE THE BORROWER TO HAVE A PERFECT CREDIT SCORE

C) SECURED LOANS REQUIRE COLLATERAL, WHILE UNSECURED LOANS DO NOT

D) UNSECURED LOANS OFFER LOWER INTEREST RATES THAN SECURED LOANS

Category: COMPREHENSIVE BANKING KNOWLEDGE

102. IN BANKING, 'LIQUIDITY' REFERS TO:

A) THE EASE WITH WHICH ASSETS CAN BE CONVERTED INTO CASH WITHOUT SIGNIFICANT LOSS OF VALUE

B) THE ABILITY OF A BANK TO MEET ITS LONG-TERM OBLIGATIONS

C) THE PROFITABILITY OF THE BANK'S LOANS

D) THE RATIO OF CASH RESERVES HELD BY A BANK

Category: COMPREHENSIVE BANKING KNOWLEDGE

103.

WHAT IS THE FULL FORM OF 'IFSC' CODE USED IN BANKING?

A) INTERNATIONAL FINANCIAL SYSTEM CODE

B) INDIAN FINANCIAL SECURITY CODE

C) INDIAN FINANCIAL SYSTEM CODE

D) INTERNATIONAL FINANCIAL SERVICES CODE

Category: COMPREHENSIVE BANKING KNOWLEDGE

104.

WHAT DOES 'AUM' STAND FOR IN BANKING?

A) ANNUAL UNIFORM MAINTENANCE

B) ACCOUNTS UNDER MANAGEMENT

C) AVAILABLE UNIFORM MARKET

D) ASSETS UNDER MANAGEMENT

Category: COMPREHENSIVE BANKING KNOWLEDGE

105. WHAT IS THE ROLE OF THE 'MONEY MULTIPLIER' IN BANKING?

A) IT MEASURES THE RATE AT WHICH BANKS CREATE MONEY

B) IT REGULATES CURRENCY CIRCULATION

C) IT MEASURES THE RATE AT WHICH A COUNTRY'S CURRENCY APPRECIATES

D) IT DETERMINES INTEREST RATES ON LOANS

Category: COMPREHENSIVE BANKING KNOWLEDGE

106. WHICH OF THE FOLLOWING REFERS TO 'REHYPOTHECATION'?

A) THE PAYMENT OF DIVIDENDS TO SHAREHOLDERS

B) THE PROCESS OF TRANSFERRING A LOAN TO A THIRD PARTY

C) USING A CUSTOMER'S SECURITIES AS COLLATERAL FOR THE BANK’S BORROWING

D) THE SALE OF GOVERNMENT BONDS TO RAISE CAPITAL

Category: COMPREHENSIVE BANKING KNOWLEDGE

107. WHICH OF THE FOLLOWING IS AN EXAMPLE OF A CAPITAL MARKET INSTRUMENT?

A) GOVERNMENT BONDS

B) SHORT-TERM LOAN

C) SAVINGS ACCOUNT

D) CERTIFICATE OF DEPOSIT

Category: COMPREHENSIVE BANKING KNOWLEDGE

108. WHICH OF THE FOLLOWING IS A TYPE OF 'E-BANKING' SERVICE?

A) ALL OF THE ABOVE

B) ATM TRANSACTIONS

C) INTERNET BANKING

D) PHONE BANKING

Category: COMPREHENSIVE BANKING KNOWLEDGE

109.

WHAT IS THE PRIMARY OBJECTIVE OF 'ASSET MANAGEMENT COMPANIES' (AMCS)?

A) TO ISSUE SHARES AND BONDS TO RAISE CAPITAL

B) TO PROVIDE LOANS TO BUSINESSES

C) TO MANAGE CENTRAL BANK OPERATIONS

D) TO MANAGE INVESTMENT PORTFOLIOS ON BEHALF OF CLIENTS

Category: COMPREHENSIVE BANKING KNOWLEDGE

110. WHICH OF THE FOLLOWING IS A TYPE OF TERM DEPOSIT?

A) RECURRING DEPOSIT

B) RECURRING DEPOSIT and FIXED DEPOSIT

C) SAVINGS DEPOSIT

D) FIXED DEPOSIT

Category: COMPREHENSIVE BANKING KNOWLEDGE

111.

WHICH OF THE FOLLOWING STATEMENTS IS TRUE REGARDING 'CREDIT RATING'?

A) IT IS NOT USED BY BANKS FOR LENDING DECISIONS

B) IT MEASURES A BORROWER'S CREDITWORTHINESS

C) IT IS ASSIGNED ONLY TO GOVERNMENT ENTITIES

D) IT IS THE SAME FOR ALL COUNTRIES

Category: COMPREHENSIVE BANKING KNOWLEDGE

112.

WHICH OF THE FOLLOWING REFERS TO THE LENDING OF MONEY FOR A FIXED PERIOD AT A SPECIFIED RATE OF INTEREST?

A) DEPOSIT

B) OVERDRAFT

C) LINE OF CREDIT

D) LOAN

Category: COMPREHENSIVE BANKING KNOWLEDGE

113. WHAT DOES THE ACRONYM 'NEFT' STAND FOR IN BANKING?

A) NATIONAL EMERGENCY FUND TRANSFER

B) NEW EFFICIENT FINANCIAL TRANSFER

C) NATIONAL ELECTRONIC FINANCE TRACKER

D) NATIONAL ELECTRONIC FUNDS TRANSFER

Category: COMPREHENSIVE BANKING KNOWLEDGE

114.

WHAT IS THE ROLE OF 'SWIFT' IN INTERNATIONAL BANKING?

A) IT PROVIDES FOREIGN EXCHANGE SERVICES

B) IT ACTS AS AN INTERMEDIARY BETWEEN CENTRAL BANKS

C) IT ENSURES THE SECURITY OF INTERNATIONAL PAYMENTS

D) IT STANDARDIZES INTERNATIONAL BANKING CODES

Category: COMPREHENSIVE BANKING KNOWLEDGE

115. IN BANKING, 'LOAN-TO-VALUE RATIO' (LTV) REFERS TO:

A) THE TOTAL VALUE OF ALL LOANS IN A BANK’S PORTFOLIO

B) THE TOTAL AMOUNT OF LOAN A CUSTOMER CAN AVAIL

C) THE RATIO OF A LOAN TO THE VALUE OF THE ASSET PURCHASED WITH THE LOAN

D) THE AMOUNT OF INTEREST CHARGED ON A LOAN

Category: COMPREHENSIVE BANKING KNOWLEDGE

116.

WHICH OF THE FOLLOWING IS A FEATURE OF 'MOBILE BANKING'?

A) FUND TRANSFER BETWEEN BANKS

B) BILL PAYMENT FACILITIES

C) ACCESS TO REAL-TIME ACCOUNT BALANCE

D) ALL OF THE ABOVE

Category: COMPREHENSIVE BANKING KNOWLEDGE

117.

WHICH OF THE FOLLOWING IS AN EXAMPLE OF A 'CREDIT FACILITY' PROVIDED BY BANKS?

A) ATM SERVICES

B) FIXED DEPOSITS

C) CREDIT CARDS

D) SAFE DEPOSIT LOCKERS

Category: COMPREHENSIVE BANKING KNOWLEDGE

118.

WHICH OF THE FOLLOWING IS A COMMON TOOL USED BY CENTRAL BANKS TO CONTROL INFLATION?

A) RAISING THE RESERVE REQUIREMENTS FOR COMMERCIAL BANKS

B) LOWERING THE INTEREST RATES

C) INCREASING THE SUPPLY OF CURRENCY

D) PROVIDING DIRECT LOANS TO CONSUMERS

Category: COMPREHENSIVE BANKING KNOWLEDGE

119.

THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD) WAS ESTABLISHED IN:

A) 1982

B) 1985

C) 1990

D) 1995

Category: COMPREHENSIVE BANKING KNOWLEDGE

120. WHAT IS THE PURPOSE OF THE 'CAPITAL ADEQUACY RATIO' (CAR) IN BANKING?

A) TO ASSESS THE RISK OF FRAUD IN A BANK

B) TO ENSURE THAT A BANK HAS ENOUGH CAPITAL TO COVER POTENTIAL LOSSES

C) TO MEASURE A BANK'S PROFITABILITY

D) TO DETERMINE THE LEVEL OF INTEREST RATES FOR LOANS

Category: COMPREHENSIVE BANKING KNOWLEDGE

121. WHAT IS THE FULL FORM OF THE TERM 'IMPS' IN BANKING

A) INTERNATIONAL MONEY PAYMENT SERVICE

B) INSTANT MOBILE PAYMENT SERVICE

C) IMMEDIATE PAYMENT SERVICE

D) INSTANT MONEY PAYMENT SYSTEM

Category: COMPREHENSIVE BANKING KNOWLEDGE

122.

THE PROCESS OF VERIFYING THE IDENTITY OF A CUSTOMER BEFORE OPENING AN ACCOUNT IS KNOWN AS:

A) KYC (KNOW YOUR CUSTOMER)

B) CBI (CENTRAL BANK INVESTIGATION)

C) AML (ANTI-MONEY LAUNDERING)

D) CDD (CUSTOMER DUE DILIGENCE)

Category: COMPREHENSIVE BANKING KNOWLEDGE

123.

WHICH OF THE FOLLOWING IS THE MAIN OBJECTIVE OF THE 'MONETARY POLICY' IN INDIA?

A) TO REGULATE THE AVAILABILITY AND COST OF MONEY AND CREDIT IN THE ECONOMY

B) TO REGULATE FOREIGN EXCHANGE RATES

C) TO CONTROL INFLATION RATES GLOBALLY

D) TO CONTROL GOVERNMENT SPENDING

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