Quiz: Banking Awareness MCQ Test!

37 Questions | Total Attempts: 46

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Quiz: Banking Awareness MCQ Test!

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Questions and Answers
  • 1. 
    Which of the following approach is common to measure Credit Risk, Market Risk &Operational Risk under Basel II accord.
    • A. 

      Basic Indicator Approach

    • B. 

      Standard Approach

    • C. 

      Advance Measurement Approach

    • D. 

      Internal Risk Rating Approach

    • E. 

      None

  • 2. 
    Provision Coverage Ratio (PCR) for NPA is----------------------%
    • A. 

      50

    • B. 

      60

    • C. 

      70

    • D. 

      80

    • E. 

      None

  • 3. 
    Both the Bank Rate and Base rates are determined by RBI.
    • A. 

      True

    • B. 

      False

  • 4. 
    As Share is Capital Market, Treasury Bill is----------------
  • 5. 
    All Paper Currency is issued by RBI.
    • A. 

      True

    • B. 

      False

  • 6. 
    Commercial Papers are issued by banks.
    • A. 

      True

    • B. 

      False

  • 7. 
    'Banking' is defined in Sec 6(b) of the Banking Regulation Act 1949. 
    • A. 

      True

    • B. 

      False

  • 8. 
    In 'CAMELS" rating for Bank, 'M' stands for:
    • A. 

      Marginal

    • B. 

      Matching

    • C. 

      Manageable

    • D. 

      Mutual

    • E. 

      Management

    • F. 

      None

  • 9. 
    Poverty Alleviation Scheme "SGSY" has been recently replaced by:
    • A. 

      SRMS

    • B. 

      SJSRY

    • C. 

      MGNREP

    • D. 

      NRLM

    • E. 

      None

  • 10. 
    'Promissory Note' being one of the Negotiable Instruments defined in N.I. Act, which may be payable 'Bearer' or 'Order', any entity can issue the same for mercantile purposes.
    • A. 

      True

    • B. 

      False

  • 11. 
    No. of Nominee(s) in Bank Deposit Account can be maximum---------------.
    • A. 

      According to no. of account holder in a particular account

    • B. 

      1 nominee in single name deposit & so on subject to maximum 3

    • C. 

      No nomination facility available

    • D. 

      Nomination facility available in the name of spouse only

    • E. 

      Only 1 nominee irrespective of the no of account holders in a particular account

  • 12. 
    Final implementation of Basel III Accord has to be completed by31-03-2018 when Indian Banks would be required to maintain a minimum Capital Adequacy Ratio of 11.5 %
    • A. 

      Correct

    • B. 

      Incorrect

  • 13. 
    Crossing is applicable for all negotiable instruments.
    • A. 

      True

    • B. 

      False

  • 14. 
    Maximum Credit Limit for Micro Finance is Rs.------------lac
    • A. 

      10000

    • B. 

      25000

    • C. 

      50000

    • D. 

      75000

    • E. 

      100000

  • 15. 
    Overall Target for Directed Lending (Priority Sector) is------------------% as per ------------------------Act 2006 for Domestic Commercial Bank on ANBC or CEOBE of the previous year, whichever is higher.
    • A. 

      40, RBI

    • B. 

      40, MSMED

    • C. 

      40, Banking Regulation

    • D. 

      40, IBA

    • E. 

      None

  • 16. 
    'Railway Receipt' (RR) as a  Document of Title to Goods as defined in Sales of Goods Act 1930 is transferable as well as Negotiable Instrument like 'Cheque' defined in N.I. Act of 1881.
    • A. 

      True

    • B. 

      False

  • 17. 
    Limited Liability Partnership (LLP) Act has been enacted in the year---------------
    • A. 

      2006

    • B. 

      2007

    • C. 

      2008

    • D. 

      2009

    • E. 

      2010

  • 18. 
    The margin requirement for assessment of working capital advance under "Turnover" Method" of lending is----------------
    • A. 

      5% of acceptable projected turn over

    • B. 

      25 % of acceptable projected turnover

    • C. 

      25 % of Working Capital Gap

    • D. 

      5 % of acceptable projected turnover or Net Working Capital , whichever is higher

    • E. 

      25 % of working capital gap or NWC, whichever is higher

    • F. 

      None

  • 19. 
    Whichever is incorrect in respect of the Minimum Current Ratio?
    • A. 

      Current Ratio under 1st method of lending of Tandon Committee is 1.33:1

    • B. 

      Current Ratio under 2nd. method of lending of Tandon Committee is 1.79:1

    • C. 

      Current Ratio of 3rd. Method of Lending of Tandon Committee is 1.25 :1

    • D. 

      Current Ratio of 2nd. Method of Lending of Tandon Committee is 1.33:1

    • E. 

      1st. +2nd. +3rd. options

    • F. 

      All options

  • 20. 
    'Charge' on assets of a Company registered under Companies Act 1956 has to be filed for registration with ROC within-------------------days of creating a charge in favor of the creditor.
    • A. 

      15

    • B. 

      30

    • C. 

      45

    • D. 

      60

    • E. 

      90

  • 21. 
    Which of the followings is not relevant?
    • A. 

      Original investment in plant & machinery for Micro Service Enterprise is max. 10 lacs

    • B. 

      Original Investment in Plant & Machinery for Small Service Enterprise is above 10 lac to 5 crore

    • C. 

      Original Investment in plant & Machinery for Micro Mfg. Enterprise is max. 25 lac

    • D. 

      Original Investment in plant & machinery for small mfg. enterprise is above 25 lac to 2 crore

    • E. 

      All are relevant

  • 22. 
    Which of the following documents is/are not governed under the Indian Stamp Act 1899?
    • A. 

      Money Receipt

    • B. 

      DP Note

    • C. 

      Acknowledgement of Liability

    • D. 

      Usance Promissory Note

    • E. 

      Agreement of Indemnity

  • 23. 
    Overdue Time Deposit is----------------
    • A. 

      Inside Liability

    • B. 

      Outside Liability & Time Liability

    • C. 

      Outside Liability & Demand Liability

    • D. 

      Inside Liability & Demand Liability

    • E. 

      Inside liability & Time Liability

  • 24. 
    Under Asset Liability Management (ALM), Liquidity Risk is managed based on-------------------- for Time Deposit.
    • A. 

      Residual Period of Maturity

    • B. 

      Lapsed Period of Maturity

    • C. 

      Duration Gap Analysis

    • D. 

      Beta

    • E. 

      None

  • 25. 
    Unsecured Loan from friends & relatives in the Balance Sheet of a Proposed borrower of a Bank can be considered as a part of Networth provided----------------------is obtained from such creditor of the concerned proposed borrower
    • A. 

      Letter of Disclaimer

    • B. 

      Letter of Waiver

    • C. 

      Letter of Comfort

    • D. 

      Letter of Pegging

    • E. 

      In no case it can be a part of Net worth.

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