Banking Knowledge or Financial Awareness Questions and Answers

1. Policy Repo Rate under the Liquidity Adjustment Facility (LAF) is unchan ged at what %, after the money policy review?
a) 6.25
b) 9
c) 8
d) 7
e) 5
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2. As per the existing road map, commercial banks have to reach the minimum Liquidity Coverage Ratio (LCR) of 100 percent by which date ?
a) January 1, 2018
b) January 1, 2019
c) 2020
d) 2022
e) None of these
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3. Government securities held by banks in excess of the minimum SLR requirement, Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) and Marginal Standing Facility (MSF) are included in the stock of HQLAs. In the abbreviation, HQLAs, the letter H stands for what?
a) Heavy
b) High (HQLAs: High Quality Liquid Assets)
c) Hot
d) Huge
e) Hope
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4. RBI decided to reduce the Statutory Liquidity Ratio (SLR) from 20.5 per cent of Net Demand and Time Liabilities (NDTL) to 20.0 per cent of NDTL with effect from the fortnight beginning which date?
a) 1.1.2017
b) June 24, 2017
c) 1.4.2017
d) 1.8.2017
e) None
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5. Minimum original maturity period for Masala Bonds raised upto USD 50 million equivalent in INR per financial year should be 3 years and for bonds raised above USD 50 million equivalent in INR per financial year should befor how many years?
a) 2 years
b) one year
c) 5 years
d) 4 years
e) ½ year
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6. NBFCs must have a board approved IS Policy with the following basic tenets:
a) Confidentiality - Ensuring access to sensitive data to authorized users only.
b) Integrity - Ensuring accuracy and reliability of information by ensuring that there is no modification without authorization.
c) Availability - Ensuring that uninterrupted data is available to users when it is needed.
d) Authenticity - For IS it is necessary to
ensure that the data, transactions, communications or documents (electronic or physical) are genuine.
e) All the above
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7. The evolution of the financial markets was guided by the recommendations of which committee in 1985?
a) The Chakravarty Committee
b) The Chakravarty Committee
c) Vaghul Committee (1987)
d) Narasimham Committee (1991)
e) Sodhani Committee (1994)
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8. What is the Cash Reserve Ratio? Give details.
a) The Reserve Bank requires banks to maintain a certain amount of cash in reserve as a percentage of their deposits to ensure that banks have sufficient cash to cover customer withdrawals.
b) We adjust this ratio on occasion, as an instrument of monetary policy, depending on prevailing conditions.
c) Our centralised and computerised system allows for efficient and accurate monitoring of the balances maintained by banks with the Reserve Bank
d) All the above
e) None of these
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9. RBI's Clean Note Policy deals with which of the following?
a) Education campaign on preferred way to handle notes: no stapling, writing, excessive folding and the like
b) Timely removal of soiled notes: use of currency verification and processing systems and sorting machines
c) Exchange facility for torn, mutilated or defective notes: at all branches of commercial banks
d)All the above
e) None of these
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10. What is Marginal Standing Facility (MSF) (2011) in RBI?
a) Under MSF scheduled commercial banks can borrow overnight (even by dipping into SLR portfolio) at their discretion up to one per cent of their respective NDTL at 100 basis points above the repo rate to provide a safety valve against unanticipated liquidity shocks
b) Gold exchange
c) $ exchange
d) Euros exchange
e) None of these
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11. What is EPZ as defined by World Bank in 1981?
a) It is a clearly delineated industrial estate
b) It constitutes a free trade enclave in the customs and trade regime of a country
c) Here, foreign manufacturing firms producing mainly for export benefit from a certain number of fiscal and financial incentives
d) All the above
e) None of these
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12. The term 'hyper-inflation' means
a) a situation with moderate rise in price level
b) an inflationary situation where the external sources are the primary contributing factors
c) a 'runaway' or 'galloping' inflationary situation where the monetary unit becomes almost worthless
d) a situation where the cost-of-living index is rising alarmingly
e) other than those given as options
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13. What is 'Market Capitalization' (MCap) of a company?
a) The process of the total valuation of the financial capital assets of a company (with respect to market value)
b) Total income
c) Economic growth
d) Inflationary trend
e) None of these
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14. Which of the following is not a general credit control measure ?
a) Bank Rate
b) Variable reserve ratios
c) Open Market Operations
d) Granting of Bonus to factory employees
e) None of these
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15. Which of the following is not the part of the structure of the financial system in India?
a) Industrial finance
b) Agricultural finance
c) Government finance
d) Cryptocurrency
e) None of these
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16. Prior to the establishment of RBI, the Government banking business was conducted by which of the following organisations?
a) Bank of India
b) Central Bank of India
c) Imperial Bank of India (Presently called as SBI)
d) National Bank of India
e) Bank of Baroda
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17. Banks do not provide which of the following services?
a) Issuing bank drafts
b) Depositing money
c) Sale of post cards and postal stamps
d) Lockers for valuable items/documents
e) Lending money
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18. The headquarters of Canara Bank is situated in which Indian city?
a) Delhi
b) Mumbai
c) Kolkata
d) Bengaluru
e) Chennai
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19. ONICRA is a leading _________ .
a) Credit and performance rating agency
b) Asset Reconstruction Company
c) White-Label ATM Operator
d) AMC
e) None of these
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20. According to RBI guidelines, a non banking entity seeking authorization as Bharat Bill Payment Operating Unit ( BPOU) under the proposed Bharat Bill Payment System (BBPS) should have a minimum net worth of atleast _____ .
a) Rs.500 crores
b) Rs.400 crores
c) Rs.300 crores
d) Rs.200 crores
e) Rs.100 crores
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21. 'M-Pesa', a mobile -based money transfer and payment service, was launched by Vodafone in the eyar 2007. In India, Vodafone India launched it in 2013 in association with which bank?
a) Yes Bank
b) SBI
c) HDFC Bank
d) Kotak Mahindra Bank
e) ICICI Bank
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22. The 'Rabobank' is a Dutch multinational financial banking company headquarters in which place?
a) Limburg
b) Utrecht
c) Gelderland
d) Zeeland
e) Flevoland
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23. RBI introduced from 1.4.2016 a new methodology of setting lending rate by commercial banks and will replace the existing method, identify the new methodology?
a) PLR
b) BPLR
c) Base rate system
d) MCLR
e) None of these
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24. SMERA Ratings Limited is a joint initiative of Dun and Bradstreet Information Services India Private Limited (D&B), leading public/private sector banks in India and mainly with which bank?
a) American Express
b) World Bank
c) SIDBI
d) RBI
e) ADB
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25. RBI prepares a 'Financial Stability Report (FSR) on which basis, for the apex-level Financial Stability and Development Council (FSDC)?
a) Monthly basis
b) Yearly basis
c) Half-yearly basis ( twice in a year )
d) Every 3 months
e) None of these
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26. NTPC had listed the first Indian quasisovereign 'green Masala bond' on which exchange and had raised an amount of USD 300 million?
a) London Stock Exchange
b) Tokyo Stock Exchange
c) Hongkong Stock Exchange
d) Singapore Stock Exchange
e) None of these
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27. The 'PMKVY' scheme pertains to which of the following ?
a) Skill training/ development
b) Rural irrigation facilities
c) Solar energy initiatives
d) Development of roads
e) Urban sanitation services
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