Important Banking Awareness Quizzes (Topic Wise) Day-194

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. A profit from the sale of property or an investment is called __________

a) Business Gain

b) Capital Gain

c) Net Gain

d) Gross Gain

e) None of these

2. A bank or financial institution that processes credit or debit card payments on behalf of a merchant is called ____________

a) Lending Bank

b) Sponsored Bank

c) Acquiring Bank

d) All of the above

e) None of these

3. The nominal value of a security stated by the issuer is called as __________

a) Par Value

b) Sell Value

c) Market Value

d) Face Value

e) None of these

4. Which committee established by the Central Bank governors of the Group of ten countries in 1974 that seeks to improve the supervisory guidelines that central banks or similar authorities impose on both wholesale and retail banks?

a) BASEL Committee

b) FEDERAL Committee

c) UNION Committee

d) SWIFT Committee

e) None of these

5. Property that a borrower offers a lender to secure a loan is called as ___________

a) Mortgage

b) Sponsor

c) Gift

d) Bilateral

e) None of these

6. One hundredth of one percentage point, basically used in expressing differences of interest rates, which is known as?

a) Interest Point

b) Nominal Point

c) Basis Point

d) Base Point

e) None of these

7. The portion of a company’s profit allocated to each outstanding share of common stock is called as ___________

a) Value per share

b) Earnings per Share

c) Price per share

d) Demand per share

e) None of these

8. ______________ is the ratio of a bank’s capital to its risk

a) Capital Fund Ratio

b) Capital Risk Ratio

c) Capital Profit Ratio

d) Capital Adequacy Ratio

e) None of these

9. A value which exists as part of something, such as the value of an option is called as ___________

a) Market Value

b) Face Value

c) Par Value

d) Sell Value

e) None of these

10. The first sale of stock by a private company to the public is called _____________

a) Junk Bond

b) Offer Bond

c) Primary Bond

d) Initial Bond

e) None of these

11. The suspension of repayment of Debt, or Interest, for a specified period of time is called as _____________

a) Bounce

b) Moratorium

c) Mortgage

d) Suspension

e) None of these

12. Which value is called as nominal value of a bond?

a) Market Value

b) Face Value

c) Sell Value

d) Par Value

e) None of these

13. The gain/loss on an investment, expressed as a percentage increase over the initial investment cost, over a specified period is called as ______________

a) Rate of Return

b) Dividend

c) Earnings

d) Profit

e) None of these

14. __________ is a kind of charge created when the lender takes actual possession of assets

a) Mortgage

b) Hypothecation

c) Pledge

d) Appraisal

e) None of these

15. Which can be defined as loss in the profit and loss account while finalizing accounts of banks?

a) Loan

b) Bad Debt

c) Purchase

d) Interest

e) Provisioning

Answers:

1. Capital Gain – A profit from the sale of property or an investment.

Correct Answer is: b)

2. Acquiring Bank – A bank or financial institution that processes credit or debit card payments on behalf of a merchant

Correct Answer is: c)

3. Face Value – The nominal value of a security stated by the issuer.

Correct Answer is: d)

4. BASEL Committee – A committee established by the Central Bank governors of the Group of ten countries in 1974 that seeks to improve the supervisory guidelines that central banks or similar authorities impose on both wholesale and retail banks.

Correct Answer is: a)

5. Collateral – Property that a borrower offers a lender to secure a loan

Correct Answer is: e)

6. Basis Point – One hundredth of one percentage point, basically used in expressing differences of interest rates.

Correct Answer is: c)

7. Earnings per Share (EPS) – The portion of a company’s profit allocated to each outstanding share of common stock.

Correct Answer is: b)

8. Capital Adequacy Ratio – It is the ratio of a bank’s capital to its risk.

Correct Answer is: d)

9. Intrinsic Value – A value which exists as part of something, such as the value of an option

Correct Answer is: e)

10. Junk Bond – The first sale of stock by a private company to the public

Correct Answer is: a)

11. Moratorium – The suspension of repayment of Debt, or Interest, for a specified period of time.

Correct Answer is: b)

12. Par Value – The nominal value of a bond

Correct Answer is: d)

13. Rate of Return – The gain/loss on an investment, expressed as a percentage increase over the initial investment cost, over a specified period.

Correct Answer is: a)

14. Pledge – It’s a kind of charge created when the lender (pledgee) takes actual possession of assets.

Correct Answer is: c)

15. Provisioning – Can be defined as loss in the profit and loss account while finalizing accounts of banks.

Correct Answer is: e)

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