Important Banking Awareness Quizzes (Topic Wise) Day-186

Dear Readers, Here we have provided the Important Banking Awareness Quizzes based on particular topic, which will help to understand and prepare in a better way. Candidates those who are preparing for upcoming IBPS/SBI Exams 2018 can make use of it.

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1. ____________is written by an individual to transfer amount between two accounts of the same bank or a different bank and the money is withdrawn from the account

1.   Demand Draft
2.   Memo
3.   Cheque
4.   Credit Card
5.   None of these

2. When an account has insufficient funds the cheque is not payable and is returned by the bank with a reason “Exceeds arrangement” or “funds insufficient” is called ____________

1.   Clearing of cheque
2.   Bouncing of a cheque
3.   Transfer of cheque
4.   Reply of cheque
5.   None of these

3. ____________ is a general term used to describe the services provided by a group of networked bank branches

1.   Net Banking
2.   Core Banking
3.   Retail Banking
4.   Money Banking
5.   None of these

4. ______________is the distribution of insurance products and the insurance policies of insurance companies by banks as corporate agents through their branches

1.   Insurance
2.   Cross Selling
3.   Mutual Funds
4.   Bancassurance
5.   None of these

5. ____________is the rate of interest charged by a central bank to commercial banks on the advances and the loans it extends

1.   Repo Rate
2.   Reverse Repo Rate
3.   Interest Rate
4.   Liquidity rate
5.   None of these

6. ____________ is a loan that is made for a very short period of a few days only with a low rate of interest

1.   Commodity money
2.   Plastic Money
3.   Notice Money
4.   Call money
5.   None of these

7. _____________ is the amount of funds that a bank keeps with the Reserve Bank of India

1.   Statutory Liquidity Ratio
2.   Repo Rate
3.   Reverse Repo Rate
4.   Base Rate
5.   None of these

8. _____________ is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in the price level

1.   Inflation
2.   Imports
3.   Exports
4.   Deflation
5.   None of these

9. ______________ is an account that can be opened generally for business purposes with no restrictions on withdrawals and no interest paid

1.   Current Account
2.   Savings Account
3.   Fixed Deposit Account
4.   Demat Account
5.   None of these

10. ____________ is a name given to Credit cards, Debit cards, ATM cards and International Cards issued by banks

1.   Net Cards
2.   Money Cards
3.   Pay Cards
4.   Plastic Cards
5.   None of these

11. ______________is a contraction in the supply of circulated money within an economy

1.   Monopoly
2.   Equilibrium
3.   Inflation
4.   Surplus
5.   None of these

12. ____________ is the rate of interest on which banks base their lending rates. Usually loans are given at a rate higher than the base rates and saving rate is below the base rate

1.   Base Rate
2.   Repo Rate
3.   Bank Rate
4.   Reverse Repo rate
5.   None of these

13. ________________are loans given by a bank on which repayments or interest payments are not being made on time

1.   Bad Assets
2.   Return Assets
3.   Non Performing Assets
4.   Good Performing Assets
5.   None of these

14. ___________ is the amount of Funds borrowed by the government to meet the expenditures.

1.   Capital Deficit
2.   Fiscal Deficit
3.   Current Account Deficit
4.   Current Loan
5.   None of these

15. ______________ is account of nominal interest which can only be used for personal purpose and which has some restrictions on withdrawal

1.   Personal Account
2.   Current Account
3.   Bank Account
4.   Demat Account
5.   None of these

Answers:

1. Cheque is written by an individual to transfer amount between two accounts of the same bank or a different bank and the money is withdrawn from the account.

Correct Answer is: c)

2. When an account has insufficient funds the cheque is not payable and is returned by the bank with a reason “Exceeds arrangement” or “funds insufficient” is called Bouncing of a cheque

Correct Answer is: b)

3. Core Banking is a general term used to describe the services provided by a group of networked bank branches

Correct Answer is: b)

4. Bancassurance is the distribution of insurance products and the insurance policies of insurance companies by banks as corporate agents through their branches. Banks charge a fee for this service from insurance companies

Correct Answer is: d)

5. Bank Rate is the rate of interest charged by a central bank to commercial banks on the advances and the loans it extends.

Correct Answer is: e)

6. Call money is a loan that is made for a very short period of a few days only with a low rate of interest

Correct Answer is: d)

7. Cash Reserve Ratio is the amount of funds that a bank keeps with the RBI. If the percentage of CRR increases then the amount with the bank comes down.

Correct Answer is: e)

8. Inflation is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in the price level

Correct Answer is: a)

9. Current Account is an account that can be opened generally for business purposes with no restrictions on withdrawals and no interest paid

Correct Answer is: a)

10. Plastic Cards is a name given to Credit cards, Debit cards, ATM cards and International Cards issued by banks

Correct Answer is: d)

11. Deflation is a contraction in the supply of circulated money within an economy, and therefore the opposite of inflation

Correct Answer is: e)

12. Base Rate is the rate of interest on which banks base their lending rates. Usually loans are given at a rate higher than the base rates and saving rate is below the base rate

Correct Answer is: a)

13. Non Performing Assets or non-performing loans are loans given by a bank on which repayments or interest payments are not being made on time

Correct Answer is: c)

14. Fiscal Deficit is the amount of Funds borrowed by the government to meet the expenditures.

Correct Answer is: b)

15. Bank Account is account of nominal interest which can only be used for personal purpose and which has some restrictions on withdrawal

Correct Answer is: c)

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