103 + Interview Questions in FINANCIAL AWARENESS in BANKING FINANCIAL AWARENESS

1.	CAGR is a measure of annual growth rate. For what does ‘C’ in ‘CAGR’ stands for?1). Compound2). Common3). Country4). Capital
Answer» CAGR stands for Compound Annual Growth RATE. It is defined as the mean annual growth rate of an investment over a specified PERIOD of time longer than one year. $(CAGR = {\left( {\frac{{Ending\;VALUE}}{{Beginning\;Value}}} \right)^{\left( {\frac{1}{{Number\ of\ years}}} \right)}} - 1)$ SUPPOSE you invested Rs.10,000 in a BUSINESS. After completion of 3 years value becomes Rs.19,000. Initial value = Rs.10,000 Final value = Rs.19,000 Time = 3 years CAGR= .23 or 23%

1.

CAGR is a measure of annual growth rate. For what does ‘C’ in ‘CAGR’ stands for?1). Compound2). Common3). Country4). Capital

Answer»

CAGR stands for Compound Annual Growth RATE.
It is defined as the mean annual growth rate of an investment over a specified PERIOD of time longer than one year.
$(CAGR = {\left( {\frac{{Ending\;VALUE}}{{Beginning\;Value}}} \right)^{\left( {\frac{1}{{Number\ of\ years}}} \right)}} - 1)$
SUPPOSE you invested Rs.10,000 in a BUSINESS. After completion of 3 years value becomes Rs.19,000.

Initial value = Rs.10,000

Final value = Rs.19,000

Time = 3 years

CAGR= .23 or 23%

Discussion

2.	PAN is required to be quoted, as per RBI's KYC guidelines if the amount of transaction in cash is above ________.1). Rs. 50,0002). Rs. 10,0003). Rs. 30,000 4). Rs. 25,000
Answer» PAN is REQUIRED to be quoted, as PER RBI's Know Your Customer Guidelines if the amount is 50,000 or above.

Discussion

3.	The first step towards nationalization of banks was taken by passing the State Bank of India Act in the year ________.1). 19552). 19593). 19564). 1957
Answer» The first step towards NATIONALIZATION of BANKS in India was taken by passing the State Bank of India Act 1955 to nationalize the Imperial Bank of India and rename it as the State Bank of India. It was decided that it WOULD act as the principal banking agent of the RBI and would handle the banking transactions of the state and the central governments. It was followed by the nationalization of the SEVEN PRINCELY states’ banks in 1959 as the associate banks of State Bank of India.

3.

The first step towards nationalization of banks was taken by passing the State Bank of India Act in the year ________.1). 19552). 19593). 19564). 1957

Answer»

The first step towards NATIONALIZATION of BANKS in India was taken by passing the State Bank of India Act 1955 to nationalize the Imperial Bank of India and rename it as the State Bank of India.

It was decided that it WOULD act as the principal banking agent of the RBI and would handle the banking transactions of the state and the central governments.

It was followed by the nationalization of the SEVEN PRINCELY states’ banks in 1959 as the associate banks of State Bank of India.

Discussion

4.	Which of the following is NOT true regarding Letter of Credit?1). It is usually preferred when there is a high level of risk involved2). There are two types of LoC: Revocable and Irrevocable3). LoC are chargeable by bank4). It can be issued by only banks
Answer» A Letter of CREDIT is a written commitment ISSUED by the bank or some other financial institutions for payment assurance to the seller party from the buyer’s REQUEST. This is a FACILITY provided by the bank for which it charges fees from the beneficiary. LoC is used when there is a high level of risk involves a business TRANSACTION.

Discussion

5.	The tenure of the foreign trade policy is ________.1). 32). 53). 24). 4
Answer» The tenure of the foreign trade policy is 5 years and its license renewed annually. The FTP is updated EVERY year on the 31st of March and the modifications, improvements and new SCHEMES BECOME effective from 1st APRIL of every year.

Discussion

6.	What does ‘B’ in BPLR stands for?1). Base2). Banking3). Bullion4). Benchmark
Answer» BPLR stands for Benchmark Prime LENDING RATE. It is the interest rate which a bank charges its most CREDIT WORTHY CUSTOMERS.

Discussion

7.	1). Only v and i2). Only iv3). Only iv and v4). Only iii and v
Answer» ICICI, HDFC BANK, and IndusInd Bank are not NATIONALIZED BANKS.

Discussion

8.	Which of the following committees had introduced the concept of Standing Deposit Facility (SDF)?1). Nachiket Mor Committee2). Urjit Patel Committee3). Rangrajan Committee4). Raghuram Rajan Committee
Answer» SDF is an instrument for RBI USED by RBI for absorption of surplus liquidity from the system. It was first suggested by Urjit Patel COMMITTEE in January 2014. The proposal for SDF was INTRODUCED in the Union BUDGET of 2018.

Discussion

9.	What does authorize capital mean in securities market?1). Maximum amount authorized by Ministry of corporate affairs2).3). Maximum amount authorized by Memorandum of Association of the company4).Maximum amount authorized by promoters
Answer» Authorized capital means the MAXIMUM amount authorized by Memorandum of Association of a company that can be raised by the company. It is not MANDATORY to ISSUE shares equal to the authorized capital. It can be a lesser amount as PER REQUIREMENT of the company.

Discussion

10.

What is tagline of Karnataka Bank?1). Smart Way to Bank2). The changing face of prosperity3). Your Family Bank, Across India4). Let's Make Money Simple

Answer»

BANK	Bank Tagline
Karur Vysya Bank	Smart WAY to Bank
Lakshmi Vilas Bank	The changing FACE of prosperity
Karnataka Bank	Your Family Bank, Across India
Kotak MAHINDRA Bank	Let's Make Money Simple
Indian Bank	Your Tech-Friendly Bank

Discussion

11.	SEBI has re-constituted a 27 member committee to suggest a roadmap for developing the corporate bond market in the country? Who is the head of this committee?1). R.D Singh2). T.N Mishra3). Alok Verma4). A.P Singh
Answer» A 27 member committeere-constituted by SEBI to suggest a roadmap for developing the corporate bond MARKET in the country is headed by Harun R Khan (Deputy GOVERNOR, RBI). The committee has representation from government, banks, mutual funds, STOCK exchange, market regulators. Corporate bonds are DEBT securities issued by the corporation to raise money in the corporation for various EXPANSION purposes of the company.

Discussion

12.	Preconditions for action under SARFAESI Act, 2002 are________.1). The account must be NPA2). The amount of Debt due must be above Rs. 1 lac3). The secured asset to be enforced must not be Agricultural Land4). All of the above
Answer» Preconditions for action under SARFAESI ACT, 2002 are: The account MUST be a Non-Performing ASSET The AMOUNT of DEBT due must be above Rs. 1 Lac The secured asset to be enforced must not be an agricultural land

12.

Preconditions for action under SARFAESI Act, 2002 are________.1). The account must be NPA2). The amount of Debt due must be above Rs. 1 lac3). The secured asset to be enforced must not be Agricultural Land4). All of the above

Answer»

Preconditions for action under SARFAESI ACT, 2002 are:

The account MUST be a Non-Performing ASSET

The AMOUNT of DEBT due must be above Rs. 1 Lac

The secured asset to be enforced must not be an agricultural land

Discussion

13.	Which committee introduced the Role of NGO And SHG In Credit?1). Samal Committee2). WS Saraf Committee3). Tandon Committee4). SK Kalia Committee
Answer» SK KALIA Committee introduced the ROLE of NGO And SHG In CREDIT.

Discussion

14.	Where does KYC stores its data?1). National Securities Depository Limited (NSDL)2). National Statistical Data-repository Limited (NSDL)3). National Securities Data-repository Limited (NSDL)4). National Statistical Depository Limited (NSDL)
Answer» KYC STORES its data at “National Securities Depository Limited (NSDL)”? ? First electronic securities depository in INDIA with national COVERAGE. Established due to the enactment of DEPOSITORIES Act in August 1996 on 8 November 1996 in Mumbai. HANDLES most of the securities held and settled in the de-materialized form in the Indian capital markets (international standards).

Discussion

15.	1). Rs. 50002). Rs. 10003). Rs. 5004). Rs. 15000
Answer» The MINIMUM annual payment to be made in a PPF account within one year is 500 whereas the MAXIMUM DEPOSIT that can be made in one year is 1.5 lakhs.$

Discussion

16.	ABC Private Limited has an experience of 10 years in NBFC’s. Can it set up a Small Finance Bank?1). Yes as the minimum requirement for setting up Small Finance Bank is 10 years of experience in Banking Sector.2). No as the experience of operating NBFC is not recognized.3). No, as only an Individual or Professional can set up a Small Finance Bank irrespective of the fact that he is experienced or fresher.4). No as only an Individual or Professional with 10 years of experience in the Banking Sector cannot set up a Small Finance Bank.
Answer» Individuals/professions with 10 years of EXPERIENCE in Finance Non-Banking Financial COMPANIES (NBFCs) MICROFINANCE companies Local AREA banks are ELIGIBLE to set up SFBs. It is to be noted that a Corporate House is not eligible to set up a Small Finance Bank.

16.

ABC Private Limited has an experience of 10 years in NBFC’s. Can it set up a Small Finance Bank?1). Yes as the minimum requirement for setting up Small Finance Bank is 10 years of experience in Banking Sector.2). No as the experience of operating NBFC is not recognized.3). No, as only an Individual or Professional can set up a Small Finance Bank irrespective of the fact that he is experienced or fresher.4). No as only an Individual or Professional with 10 years of experience in the Banking Sector cannot set up a Small Finance Bank.

Answer»

Individuals/professions with 10 years of EXPERIENCE in

Finance
Non-Banking Financial COMPANIES (NBFCs)
MICROFINANCE companies
Local AREA banks are ELIGIBLE to set up SFBs.

It is to be noted that a Corporate House is not eligible to set up a Small Finance Bank.

Discussion

17.	Which of the following is the title given to an asset for its residual value?1). Diminished2). Shrink3). Taper4). Salvage
Answer» Salvage value is the title GIVEN to an asset for its diminished value. It is defined as the estimated resale value of an asset at the end of its useful life. Suppose ‘A’ buy a car for 5 lakh rupees, after USING it for 10 years the car met with an accident and damage is beyond repair. Now A SELLS it to the junkyard for 10,000. The value of its metal, body and LEFT PARTS that A gained is termed as salvage value or residual value.

Discussion

18.	Which of the following is not a qualitative tool used by RBI to control the flow of liquidity?1). RBI Guidelines2). Moral Suasion3). Open Market Operations4). Rationing of Credit
Answer» RBI USES quantitative as well as qualitative tools for CREDIT control which is required for the functioning of the economy. Quantitative tools are USED to control the quantity of liquidity in the economy. CRR, SLR, Bank Rate, LAF, MSFR, and Open Market Operations (OMO) are quantitative tools. Qualitative tools are used to control the flow of liquidity. These tools are RBI guidelines, Marginal requirements. Consumer credit regulation, MORAL suasion, Rationing of credit and Direct Action.

Discussion

19.	1). Only iii2). Only i and iii3). Only ii, iii, iv4). Only i, ii and iii
Answer» BHARAT QR is P2M (Person to Merchant) Mobile payment solution.This solution is mutually derived among NPCI, Visa and Mastercard payment networks. Once the BQR codes are deployed on Merchant locations, user can pay the utility bills using BQR enabled mobile banking APPS without sharing any user credentials to the merchant. It is a QUICK METHOD of payment.

Discussion

20.	Which of the following statement is/are correct regarding the Vostro account?1). It is an account held by a correspondent bank on behalf of another bank.2). The account is a record of money owed to or maintained by a third party.3). A Vostro account is like any other account held by a bank.4). All of the above
Answer» "Vostro account" is the TERM used by Bank B, where bank A's money is on deposit. Vostro is derived from the Latin word for "yours," and refers to "your money that is on deposit at our bank." A Vostro account is like any other account held by a bank. The account is a RECORD of money owed to or maintained by a THIRD party, typically ANOTHER bank, but it can be either a company or an individual.

20.

Which of the following statement is/are correct regarding the Vostro account?1). It is an account held by a correspondent bank on behalf of another bank.2). The account is a record of money owed to or maintained by a third party.3). A Vostro account is like any other account held by a bank.4). All of the above

Answer»

"Vostro account" is the TERM used by Bank B, where bank A's money is on deposit.

Vostro is derived from the Latin word for "yours," and refers to "your money that is on deposit at our bank."
A Vostro account is like any other account held by a bank.
The account is a RECORD of money owed to or maintained by a THIRD party, typically ANOTHER bank, but it can be either a company or an individual.

Discussion

21.	The Negotiable Instruments are defined under ________ of Negotiable Instruments Act, 1881.1). Section 42). Section 53). Section 64). Section 10
Answer» The Negotiable Instruments are defined under Section 13 of Negotiable Instruments ACT, 1881. Section 4 - defines Promissory Note. Section 5 - defines Bill of EXCHANGE. Section 6 - defines CHEQUE. Section 10 - defines PAYMENT in due Course of a Negotiable Instrument.

21.

The Negotiable Instruments are defined under ________ of Negotiable Instruments Act, 1881.1). Section 42). Section 53). Section 64). Section 10

Answer»

The Negotiable Instruments are defined under Section 13 of Negotiable Instruments ACT, 1881.

Section 4 - defines Promissory Note.
Section 5 - defines Bill of EXCHANGE.
Section 6 - defines CHEQUE.
Section 10 - defines PAYMENT in due Course of a Negotiable Instrument.

Discussion

22.	Where is the headquarters of "Fincare - Small finance bank" located?1). Ahmedabad2). Delhi3). Mumbai4). Bengaluru
Answer» The headquarters of Fincare small FINANCE BANK is LOCATED in Bengaluru, KARNATAKA.

Discussion

23.	1). 1 and 22). 2 and 33). 1 and 34). All of the above
Answer» The Malegam Committee of experts on Licensing of new UCBs was set up on 30 January 2015. After the suggestion of the Malegam Committee to put Board of Management (BoM) in addition to Board of Directors in UCBs. Constitution of the Board of Management (BoM): There shall be a Board of Management (BoM) in every UCB in addition to the Board of Directors. BoM shall be constituted by the Board of Directors (BoD). Existing UCBs having DEPOSIT SIZE exceeding Rs. 100 crore shall put in PLACE the BoM within a PERIOD of one year. Other banks may constitute the BoM within a period of two years. Functions of the Board of Management: The BoM shall be responsible to BoD. Key responsibilities of BoM will include credit management, risk management, and liquidity management.

23.

1). 1 and 22). 2 and 33). 1 and 34). All of the above

Answer»

The Malegam Committee of experts on Licensing of new UCBs was set up on 30 January 2015. After the suggestion of the Malegam Committee to put Board of Management (BoM) in addition to Board of Directors in UCBs.

Constitution of the Board of Management (BoM):

There shall be a Board of Management (BoM) in every UCB in addition to the Board of Directors. BoM shall be constituted by the Board of Directors (BoD). Existing UCBs having DEPOSIT SIZE exceeding Rs. 100 crore shall put in PLACE the BoM within a PERIOD of one year. Other banks may constitute the BoM within a period of two years.

Functions of the Board of Management:

The BoM shall be responsible to BoD. Key responsibilities of BoM will include credit management, risk management, and liquidity management.

Discussion

24.	Which one of the following links all the ATMs in India?1). National Payments Corporation of India2). Reserve Bank of India3). Indian Bank’s Association4). India Infrastructure Finance Company
Answer» National Financial Switch (NFS) is the largest NETWORK of shared ATMs in India. It was designed, DEVELOPED and deployed by the Institute for Development and RESEARCH in Banking Technology (IDRBT) in 2004. It is run by the National PAYMENTS Corporation of India (NPCI).

Discussion

25.	GoldRush is a way to own physical gold in different quantities online at any time, purchased gold is held securely with a secured storage facility. The scheme ‘GoldRush’ is launched by?1). Stock Holding Corporation of India Ltd.2). Central Depository Services India Limited3). Industrial Finance Corporation of India Ltd4). Unit Trust of India
Answer» Gold Rush has been LAUNCHED by Stock Holding Corporation of India Ltd. It is a simple way to own physical gold and STORE with most secured storage facility at Gold & Silver Refinery at, Mewat, Haryana. GoldRush offers customer to purchase gold starting from Rs.1,000. Buyer can withdraw and take physical POSSESSION of all or part of his gold holding at any time. Gold can be bought or withdrawn online 24 hours a DAY. Stock Holding is a Public LIMITED Company and a subsidiary of Industrial Finance Corporation of India Ltd (IFCI).

Discussion

26.	When was National Housing Bank established?1). 9 July 19882). 9 June 19883). 9 July 19864). 9 June 1986
Answer» National HOUSING Bank was established on 9^thJuly 1988. It is a wholly OWNED subsidiary of Reserve Bank of INDIA$. Headquartered in NEW Delhi India. National Housing Bank is apex institution for Housing.

Discussion

27.	Losses to a bank due to fluctuations in the equity market are termed1). Market risk2). Commodity risk3). Financial risk4). Liquidity risk
Answer» Market risk is a type of risk in which LOSSES in on - or off - balance sheet POSITIONS arise from movements in market PRICES. It is most prominent for BANKS engaged in investment banking.

Discussion

28.	How much amount will be expanded by NABARD in the fiscal (2018-19) to improve the rural economy?1). ₹ 50,000 crore2). ₹ 80,000 crore3). ₹ 90,000 crore4). ₹ 100,000 crore
Answer» In fiscal 2018-19, NABARD has increased its lending to ?80,000 crore against ?65,000 crore in fiscal 2017-2018. National BANK for Agriculture and Rural Development (NABARD) is an agricultural development financial institute in India, that provides funds for promotion and development of agricultural, COTTAGE and VILLAGE industries, handicrafts, small-scale industries in India. NABARD was set up in 1982, with its headquarters at MUMBAI, Maharashtra.

Discussion

29.	Which of the following are NOT necessary for IMPS transactions?1). MICR Code2). IFSC Code3). Name of the account holder4). Both 1) and 3)
Answer» IMPS stands for Immediate Payment Service. STARTED in 2010, it is a 24X7 FACILITY available to all bank account holders. In order to TRANSFER money through IMPS, account number of the receiver and IFSC Code are required.

Discussion

30.	1). NSDL works for NSE whereas CDSL works for BSE2). These holds securities in electronic form3). NSDL was founded in 19964). CDSL was founded in 1999
Answer» These were REGISTERED with SEBI but not founded by the same.$ CDSL was PROMOTED by BSE, SBI, BOI, BOB, HDFC Bank, Standard Chartered Bank, UNION Bank of India and Axis Bank. NSDL was promoted by UTI, IDBI, NSE and VARIOUS banks.

30.

1). NSDL works for NSE whereas CDSL works for BSE2). These holds securities in electronic form3). NSDL was founded in 19964). CDSL was founded in 1999

Answer»

These were REGISTERED with SEBI but not founded by the same.$

CDSL was PROMOTED by BSE, SBI, BOI, BOB, HDFC Bank, Standard Chartered Bank, UNION Bank of India and Axis Bank.
NSDL was promoted by UTI, IDBI, NSE and VARIOUS banks.

Discussion

31.	________ (UPI PIN) digit pass code you create/set during first time registration with UPI App.1). 3-52). 4-63). 4-54). 3-4
Answer» 4-6 (UPI PIN)digit PASS CODE you create/set during first time REGISTRATION with UPI App

Discussion

32.	Who among the following is eligible to open a bank account in India?1). Indian citizens2). Non-resident Indians3). Senior citizens4). A 10-year-old minor
Answer» Foreign NATIONALS, who are STAYING in India for a LONG PERIOD due to work or business reasons, can open a bank account in order to make and receive rupee payments. Foreign nationals can open FA resident savings or current account with a bank in India provided they furnish requisite KYC documents. The foreign national can convert the account to NRO status when he completes his assignment in India and goes back to his own country.

32.

Who among the following is eligible to open a bank account in India?1). Indian citizens2). Non-resident Indians3). Senior citizens4). A 10-year-old minor

Answer»

Foreign NATIONALS, who are STAYING in India for a LONG PERIOD due to work or business reasons, can open a bank account in order to make and receive rupee payments.

Foreign nationals can open FA resident savings or current account with a bank in India provided they furnish requisite KYC documents.
The foreign national can convert the account to NRO status when he completes his assignment in India and goes back to his own country.

Discussion

33.	What is the full form of NSDL?1). National Society Demand Limited2). National Securities Depository Limited3). National Social Development Limited4). National Safety Development Limited
Answer» National Securities Depository LIMITED is an Indian CENTRAL securities depository BASED in Mumbai. Founded on 8 August 1996. HEADQUARTERS is in Mumbai.

Discussion

34.	A payments bank will be recognized as Systematically Importatant when the net worth of the bank reaches _________ .1). Rs. 350 crore2). Rs. 500 crore3). Rs. 550 crore4). Rs. 800 crore
Answer» When the PAYMENT bank REACHES the NET worth of Rs.500 crore, and therefore becomes systemically important, diversified OWNERSHIP and listing will be mandatory within three YEARS of reaching that net worth.

Discussion

35.	What is the dimension of the new Rs. 50 currency note issued by the Reserve Bank of India?1). 135 × 66 mm22). 145 × 69 mm23). 136 × 56 mm24). 156 × 60 mm2
Answer» The new Rs. 50 currency NOTE has the dimension of 135 × 66 mm² The colour of the currency note is Fluorescent Blue. This new currency note was issued by the RBI in August 2017.

Discussion

36.	The procedure where an issuer designs a financial instrument and list them as securities to earn money is known as?1). Debenture forming2). Securitization3). Transformed money4). Capital transformation
Answer» Securitization is defined as the process where an issuer designs a FINANCIAL instrument and LIST them as SECURITIES to earn money. These securities include shares, debentures, bonds etc. Securities are ISSUED by companies to raise capitals for their projects and in return, company pays an INTEREST or a share in the company.

Discussion

37.	Minimum Maturity period of Fixed Deposit is__________.1). 7 Days2). 15 Days3). 3 Months4). 6 Months
Answer» FD minimum maturity PERIOD is 7 days and maximum is 10 years.

Discussion

38.	Which of the following is a customized contract between two parties to buy or sell assets on a specified price on a future date?1). Post date agreement2). New trading3). Forward contract4). Insider trading
Answer» A forward contract is a CUSTOMIZED contract between two parties to buy or sell assets on a specified price on a future date. Suppose a farmer has 10 hectares of land planted with WHEAT, he is concerned about the decline in PRODUCTION of wheat. He, THEREFORE, enters into a contract with a financial institution to sell the total productivity of 10 hectares of land at ?1,00,000 after 6 MONTHS. This agreement is termed as a Forward contract.

Discussion

39.	According to the latest analysis of 2011 census, how many languages are there in India which is spoken by 10,000 or more people?1). 1042). 1153). 1214). 120
Answer»

Discussion

40.	What are the two new schemes introduced by Foreign Trade Policy of India 2015-20?1). EOU & EHTP2). FMS & FPS3). STP & BTP 4). MEIS & SEIS
Answer» Two new schemes INTRODUCED by Foreign TRADE Policy of INDIA 2015-20 are Merchandise Exports from India SCHEME (MEIS) - for export of specified goods to specified markets. Services Exports from India Scheme (SEIS) - for increasing exports of notified services, in place of a plethora of schemes earlier, with different conditions for eligibility and usage.

40.

What are the two new schemes introduced by Foreign Trade Policy of India 2015-20?1). EOU & EHTP2). FMS & FPS3). STP & BTP 4). MEIS & SEIS

Answer»

Two new schemes INTRODUCED by Foreign TRADE Policy of INDIA 2015-20 are Merchandise Exports from India SCHEME (MEIS) - for export of specified goods to specified markets.

Services Exports from India Scheme (SEIS) - for increasing exports of notified services, in place of a plethora of schemes earlier, with different conditions for eligibility and usage.

Discussion

41.	Which of the following is/are the benefit(s) of MCLR?1). MCLR revised on monthly basis benefiting bank customers especially borrowers2). Banks to compete with the commercial paper market3). Reduces borrowing cost for companies4). Indian banking industry moves towards international standards
Answer» The Reserve bank of INDIA (RBI) introduced the MCLR methodology for fixing interest rates for advances effective from April 1, 2016. The following are the benefits of MCLR: MCLR revised on monthly basis benefiting bank customers especially borrowers BANKS to compete with commercial paper market REDUCES borrowing cost for COMPANIES Indian banking industry moves towards international STANDARDS

41.

Which of the following is/are the benefit(s) of MCLR?1). MCLR revised on monthly basis benefiting bank customers especially borrowers2). Banks to compete with the commercial paper market3). Reduces borrowing cost for companies4). Indian banking industry moves towards international standards

Answer»

The Reserve bank of INDIA (RBI) introduced the MCLR methodology for fixing interest rates for advances effective from April 1, 2016.

The following are the benefits of MCLR:
MCLR revised on monthly basis benefiting bank customers especially borrowers
BANKS to compete with commercial paper market
REDUCES borrowing cost for COMPANIES
Indian banking industry moves towards international STANDARDS

Discussion

42.	Certificate of Deposit are issued by which of the following?1). Commercial Banks2). Financial institutions3). Corporate houses4). 1 & 2
Answer» Certificates of deposits are ISSUED by commercial BANKS or financial INSTITUTION. Minimum amount can be 1 lakh. Maturity period is 3 months to 1 YEAR for banks and 1-3 YEARS for financial institution.

Discussion

43.	Imperial Bank of India was renamed as State Bank of India on the recommendation of which commiittee?1). AK Bhuchar Committee2). A Ghosh Committee3). A.D.Gorewala Commiittee4). Adhyarjuna Committee
Answer» In 1955,Imperial Bank of India was renamed as STATE Bank of India on the RECOMMENDATIONS of A.D.Gorewala Commiittee.

Discussion

44.	The money that is lent for one day into money market is called ___________.1). Hot Money2). Short Money 3). Notice Money 4). Call Money
Answer» The MONEY that is lent for ONE DAY into money market is called CALL Money.

Discussion

45.	Joy of Banking is tagline of ________.1). Capital Local Area Bank2). Equitas Holdings Private Limited3). ESAF Microfinance and Investments Private Ltd 4). Suryoday Micro Finance Private Ltd
Answer» JOY of BANKING is tagline ofESAF MICROFINANCE and Investments PRIVATE Ltd .

Discussion

46.	Among the following which was the first bank to established in India?1). Bank of Bengal2). Bank of Hindustan3). Oudh Commercial Bank4). Bank of Madras
Answer» The BANK of HINDUSTAN was FIRST bank to be ESTABLISHED in INDIA in 1770.

Discussion

47.	SIP is an investment vehicle offered by mutual funds. What is the full form of SIP?1). Savings Investment Plan2). Systematic Investment Plan3). Systematic Investment Programme4). Systematic Insurance Plan
Answer» A Systematic Investment Plan (SIP) is an investment vehicle OFFERED by mutual funds to investors, allowing them to invest small amounts PERIODICALLY. The frequency of investment is usually weekly, monthly or QUARTERLY. SIP works on the principle of regular investments. It is like a recurring DEPOSIT where you put in a small amount every month. It allows you to invest by MAKING smaller periodic investments in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs. 500 each in place of a one-time investment of Rs. 5,000.

Discussion

48.	Which committee recommended Universal Banking ?1). R H Khan Committee2). Rang Rajan Committee3). P R Nayak Committee4). Tandon Committee
Answer» UNIVERSAL Banking is recommended by R H Khan Committee.It MEANS allowing Financial Institutions & banks to carryout all types of banking or DEVELOPMENT financing activity .

Discussion

49.	Which payment service works on Unstructured Supplementary Service Data (USSD) channel?1). 99#2). 990#3). *99#4). #909
Answer» The INNOVATIVE payment service *99# works on UNSTRUCTURED Supplementary Service Data (USSD) channel. This service ALLOWS mobile banking transactions USING basic feature mobile phone, there is no need to have mobile INTERNET data facility for using USSD based mobile banking.

Discussion

50.	PMLA is an act by Indian government to curb black money. For what does ‘P’ in ‘PMLA’ stands for?1). Power2). Prevention3). People4). Proper
Answer» OPTION 2.. PREVENTION..

Discussion

Explore topic-wise InterviewSolutions in Current Affairs.

CAGR is a measure of annual growth rate. For what does ‘C’ in ‘CAGR’ stands for?1). Compound2). Common3). Country4). Capital

PAN is required to be quoted, as per RBI's KYC guidelines if the amount of transaction in cash is above ________.1). Rs. 50,0002). Rs. 10,0003). Rs. 30,000 4). Rs. 25,000

The first step towards nationalization of banks was taken by passing the State Bank of India Act in the year ________.1). 19552). 19593). 19564). 1957

Which of the following is NOT true regarding Letter of Credit?1). It is usually preferred when there is a high level of risk involved2). There are two types of LoC: Revocable and Irrevocable3). LoC are chargeable by bank4). It can be issued by only banks

The tenure of the foreign trade policy is ________.1). 32). 53). 24). 4

What does ‘B’ in BPLR stands for?1). Base2). Banking3). Bullion4). Benchmark

1). Only v and i2). Only iv3). Only iv and v4). Only iii and v

Which of the following committees had introduced the concept of Standing Deposit Facility (SDF)?1). Nachiket Mor Committee2). Urjit Patel Committee3). Rangrajan Committee4). Raghuram Rajan Committee

What does authorize capital mean in securities market?1). Maximum amount authorized by Ministry of corporate affairs2).3). Maximum amount authorized by Memorandum of Association of the company4).Maximum amount authorized by promoters

What is tagline of Karnataka Bank?1). Smart Way to Bank2). The changing face of prosperity3). Your Family Bank, Across India4). Let's Make Money Simple

SEBI has re-constituted a 27 member committee to suggest a roadmap for developing the corporate bond market in the country? Who is the head of this committee?1). R.D Singh2). T.N Mishra3). Alok Verma4). A.P Singh

Preconditions for action under SARFAESI Act, 2002 are________.1). The account must be NPA2). The amount of Debt due must be above Rs. 1 lac3). The secured asset to be enforced must not be Agricultural Land4). All of the above

Which committee introduced the Role of NGO And SHG In Credit?1). Samal Committee2). WS Saraf Committee3). Tandon Committee4). SK Kalia Committee

Where does KYC stores its data?1). National Securities Depository Limited (NSDL)2). National Statistical Data-repository Limited (NSDL)3). National Securities Data-repository Limited (NSDL)4). National Statistical Depository Limited (NSDL)

1). Rs. 50002). Rs. 10003). Rs. 5004). Rs. 15000

Which of the following is the title given to an asset for its residual value?1). Diminished2). Shrink3). Taper4). Salvage

Which of the following is not a qualitative tool used by RBI to control the flow of liquidity?1). RBI Guidelines2). Moral Suasion3). Open Market Operations4). Rationing of Credit

1). Only iii2). Only i and iii3). Only ii, iii, iv4). Only i, ii and iii

The Negotiable Instruments are defined under ________ of Negotiable Instruments Act, 1881.1). Section 42). Section 53). Section 64). Section 10

Where is the headquarters of "Fincare - Small finance bank" located?1). Ahmedabad2). Delhi3). Mumbai4). Bengaluru

1). 1 and 22). 2 and 33). 1 and 34). All of the above

Which one of the following links all the ATMs in India?1). National Payments Corporation of India2). Reserve Bank of India3). Indian Bank’s Association4). India Infrastructure Finance Company

When was National Housing Bank established?1). 9 July 19882). 9 June 19883). 9 July 19864). 9 June 1986

Losses to a bank due to fluctuations in the equity market are termed1). Market risk2). Commodity risk3). Financial risk4). Liquidity risk

How much amount will be expanded by NABARD in the fiscal (2018-19) to improve the rural economy?1). ₹ 50,000 crore2). ₹ 80,000 crore3). ₹ 90,000 crore4). ₹ 100,000 crore

Which of the following are NOT necessary for IMPS transactions?1). MICR Code2). IFSC Code3). Name of the account holder4). Both 1) and 3)

1). NSDL works for NSE whereas CDSL works for BSE2). These holds securities in electronic form3). NSDL was founded in 19964). CDSL was founded in 1999

________ (UPI PIN) digit pass code you create/set during first time registration with UPI App.1). 3-52). 4-63). 4-54). 3-4

Who among the following is eligible to open a bank account in India?1). Indian citizens2). Non-resident Indians3). Senior citizens4). A 10-year-old minor

What is the full form of NSDL?1). National Society Demand Limited2). National Securities Depository Limited3). National Social Development Limited4). National Safety Development Limited

A payments bank will be recognized as Systematically Importatant when the net worth of the bank reaches _________ .1). Rs. 350 crore2). Rs. 500 crore3). Rs. 550 crore4). Rs. 800 crore

What is the dimension of the new Rs. 50 currency note issued by the Reserve Bank of India?1). 135 × 66 mm22). 145 × 69 mm23). 136 × 56 mm24). 156 × 60 mm2

The procedure where an issuer designs a financial instrument and list them as securities to earn money is known as?1). Debenture forming2). Securitization3). Transformed money4). Capital transformation

Minimum Maturity period of Fixed Deposit is__________.1). 7 Days2). 15 Days3). 3 Months4). 6 Months

Which of the following is a customized contract between two parties to buy or sell assets on a specified price on a future date?1). Post date agreement2). New trading3). Forward contract4). Insider trading

According to the latest analysis of 2011 census, how many languages are there in India which is spoken by 10,000 or more people?1). 1042). 1153). 1214). 120

What are the two new schemes introduced by Foreign Trade Policy of India 2015-20?1). EOU & EHTP2). FMS & FPS3). STP & BTP 4). MEIS & SEIS

Which of the following is/are the benefit(s) of MCLR?1). MCLR revised on monthly basis benefiting bank customers especially borrowers2). Banks to compete with the commercial paper market3). Reduces borrowing cost for companies4). Indian banking industry moves towards international standards

Certificate of Deposit are issued by which of the following?1). Commercial Banks2). Financial institutions3). Corporate houses4). 1 & 2

Imperial Bank of India was renamed as State Bank of India on the recommendation of which commiittee?1). AK Bhuchar Committee2). A Ghosh Committee3). A.D.Gorewala Commiittee4). Adhyarjuna Committee

The money that is lent for one day into money market is called ___________.1). Hot Money2). Short Money 3). Notice Money 4). Call Money

Joy of Banking is tagline of ________.1). Capital Local Area Bank2). Equitas Holdings Private Limited3). ESAF Microfinance and Investments Private Ltd 4). Suryoday Micro Finance Private Ltd

Among the following which was the first bank to established in India?1). Bank of Bengal2). Bank of Hindustan3). Oudh Commercial Bank4). Bank of Madras

SIP is an investment vehicle offered by mutual funds. What is the full form of SIP?1). Savings Investment Plan2). Systematic Investment Plan3). Systematic Investment Programme4). Systematic Insurance Plan

Which committee recommended Universal Banking ?1). R H Khan Committee2). Rang Rajan Committee3). P R Nayak Committee4). Tandon Committee

Which payment service works on Unstructured Supplementary Service Data (USSD) channel?1). *99#2). *990#3). **99#4). #909*

PMLA is an act by Indian government to curb black money. For what does ‘P’ in ‘PMLA’ stands for?1). Power2). Prevention3). People4). Proper

Which payment service works on Unstructured Supplementary Service Data (USSD) channel?1). 99#2). 990#3). **99#4). #909*