Banking Awareness Quiz : Part - 124


1. What is 'NIKKEI':
a. Share Price Index of Tokyo share market
b. Name of Japanese Central Bank
c. JApanese name of the country's Planing Commission
d. Foreign Exchange market of Japan

2. NABARD was established on the recommendation of:
a. Public Accounts Committee
b. Shivaraman Committee
c. Narasimham Committee
d. Khandelwal Committee

3. What do we mean by Green Shoe Option:
a. It is the shoe which is green in colour
b. It is type of carbon credit rights that the nation have to purchase to get the right to emit carbon 
c. It gives the underwriter the right to sell investors more shares than originally planned
d. The global warming of the earth

4. "Micro Credits" are loans:
a. granted to distressed persons (other than farmers) to pre-pay their debt to non- institutional lenders against appropriate collateral provided by banks
b. not exceeding Rs.50,000 per borrower provided by banks
c. both A and B
d. none of the above

5. Who was the Finance Minister when 14 Banks were nationalised on 19th July, 1969:
a. Mrs. Indira Gandhi
b. Morarji Desai
c. C. Subramaniam
d. Pranab Mukherjee

6. Counter guarantee means a guarantee obtained:
a. by banks from customers on whose behalf the banks have to issue guarantees in favour of third parties, such as Government department, Public bodies, Corporations etc,
b. by banks from ECGC covering export risk
c. by banks from the beneficiary of the guarantee in whose favour the guarantee is to be issued 
d. All of the above  

7. By "Technical NPA", it means:
a. a loan account becoming NPA for non-renewal
b. a loan account becoming NPA for not obtaining stock statements
c. non-recording the due after re-phasing/restructuring of a loan account
d. All of the above

8. Cash Reserve Ratio (CRR) is maintained in the form of:  
a. Investment in Money Market
b. Government Securities
c. Balance with RBI
d. All of the above

9. Computer system failure is classified in the risk category of:
a. Credit Risk
b. Operational Risk
c. Technology Risk
d. Security Risk

10. Credit facility sanctioned for purchasing, processing and packing of goods meant for export is known as:
a. packing credit
b. bridge finance
c. forfaiting
d. none of these

11. How is Base Rate calculated:
a. a host of factors, like cost of deposits, administrative costs, profitability of a bank in the previous financial year are taken into account
b. certain parameters with stipulated weights are considered while calculating a lender's Base Rate 
c. cost of deposit has the highest weight in calculating Base Rate
d. all of the above

12. A commercial bank is prohibited from issuing a bank draft payable to bearer by the provisions contained in:
a. The Negotiable Instruments Act, 1881
b. The Reserve Bank of India Act, 1934
c. The Companies Act, 1956
d. The Banking Regulation Act, 1979

13. Which of the following organisations/ agencies controls the monetary policy  of our country:
b. Planning Commission
c. RBI
d. Union Ministry of Finance

14. Negative lien is:
a. a right of the bank to take possession of all the assets hypothecated to the bank in the case of default by the borrower
b. a special type of lien on the shares of public limited companies
c. a declaration of the borrower to the effect that his assets are free from encumbrance and that he shall not encumber or dispose them of without bank's permission
d. noe of the above

15. What is securitisation:
a. A process which converts conventional credit into tradable Treasure Assets
b. Credit receivable of the Bank can be converted into Bonds i.e., pass through certificates 
c. These certificate can be traded in the market
d. All of the above
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