Banking Awareness Quiz : Part -123

1. Busy Season Credit Policy refers to the period:
a. February and August
b. June and December
c. March to September
d. October to March

2. Consumer Protection Act, 1986 does not cover:
a. failure to open accounts
b. failure to issue drafts
c. sanction of loans
d. ATMs

3. Currency Chest Slip is Serially numbered at the beginning of each year from:
a. January to December
b. March to April
c. April to march
d. July to June

4. Difference between buying and selling rates of a currency is known as:
a. Forward Rate
b. Bid-ask Rate
c. Spot Rate
d. None of these

5. EEFC account can be opened in the form of:
a. Current Account, SB Account and TDR
b. Current Account and SB Account 
c. Current Account only 
d. None of the above

6. Government securities are issued for a maximum period of:
a. 10 years
b. 15 years
c. 25 years
d. 30 years

7. The Securities and Exchange Board of India (SEBI), a  statutory autonomous body, aims to:
a. promote a fair and healthy securities market
b. protect investor's rights
c. prevent malpractices in a mobilisation of resources through capital
d. all of the above

8. The creation of over the counter exchange of India (OTC) would help the introduction of a multi-tiered market for:
a. Exports
b. Securities
c. Small Scale Industries
d. Housing

9. Truncation  of cheque means:
a. The cheque in the paper form will be retained by the collecting banker and he will submit only a computerised statement to the Clearing House
b. Entire clearing operations would be done only through computers
c. Cheque will be scanned and the electronic image, instead of physical cheque, will be transmitted in the clearing cycle
d. Debiting the drawer's account through internet banking

10. What is a convertible Bond:
a. It is a mix of Debt and Equity
b. Bond holder has an option to convert debt into equity on a fixed date
c. The  conversion price is predetermined
d. All of the above

11. What is External commercial Borrowings:
a. Indian companies can borrow on global market through Bank loan or issue of debt paper 
b. The debt can be repaid by reconversion of rupee funds into foreign currency
c. A and B both
d. None of the above

12. What is Gilts:
a. Securities issued by government or Treasuries
b. They do not have any credit Risk
c. A and B both
d. None of the above

13. SGL Account is:
a. Subsidiary General Ledger
b. It is maintained by public Debt Office of RBI
c. Banks maintain exclusively GOvernment Securities Accounts
d. All of the above

14. Know Your Customer (KYC) guidelines are as per the provisions of:
a. Section 35 of Negotiable Instruments Act, 1881
b. Section 35A of  Banking Regulation Act, 1949
c. Section 35A of RBI Act, 1934
d. IBA guidelines

15. Maximum period for which a commercial paper can be issued is:
a. 3 months
b. 6 months
c. 1 year
d. 2 years

16. Out of the "non customer facing activities" given below, which of hte following has been moved out of the branch to the maximum extent:
a.  Issue of demand drafts
b. Processing of loans
c. Clearing of cheques
d. Opening of Savings Accordingly, the three

17. What does "Round Tripping" in Foreign Direct Investment (FDI) relate to:
a. Using FDI funds inside the country
b. Using FDI funds outside the country
c. Domestic funds used outside the country
d. None of the above

18. What does Collateral Security mean:
a. Securities in the form of goods pledged for Cash Credits
b. Securities given to banks for loans against approved securities
c. Securities in the form of shares blue chip companies
d. Security given to banks over and above the primary security  

19. When trading takes place among members of a stock Exchange as a create false volumes and rigging the prices of shares, it is known as:
a. Spot Trading
b. Future Trading
c. Circular Trading
d. Insider Trading

20. When two parties make an arrangement to exchange future cash flows, it is called:
a. Options
b. Arbitrage
c. Swap
d. Futures


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