Banking Awareness Quiz With Explanation: Part 3

Published on Wednesday, April 05, 2017

(1). Multilateral Investment Guarantee Agency (MIGA) is associated with which of the following Organisation? 
(a) World Bank
(b) Reserve Bank of India
(c) International Monetary Fund (IMF)
(d) European Investment Bank

(2). National Financial Switch(NFS) is run by 
(a) Indian Banks Association (IBA)
(b) Reserve Bank of India(RBI)
(c) Finance Ministry
(d) National Payment Corporation of India (NPCI)

(3). In which type of bank account citizens of India can trade in stocks or debentures listed in the stock market? 
(a) NOSTRO account
(b) Demat Account
(c) VOSTRO account
(d) Current Account

(4). Which of the following is/are the possible benefits of using ' Aadhaar payment app'? 
(a) No requirement of a debit card or credit card for payments.
(b) No need of POS machine to swipe the card.
(c) No requirement of the internet connection to any app to register.
(d) All are Correct

(5). What is the Tag Line of 'Life Insurance Corporation Limited'? 
(a) Yogaksheman Vahamyaham
(b) Aapatkale Rakshisyami
(c) Zimmedarika Humsafar
(d) Your Dreams our commitment

(6). Recently, Indian Government has signed an agreement for the project TEJASWINI. This agreement is signed with which of the following International Organisation? 
(a) Asian Development Bank (ADB)
(b) International Monetary Fund (IMF)
(c) World Bank
(d) BRICS Bank

(7). Who was the founder of the Punjab National Bank? 
(a) Dada Bhai Naroji
(b) H.O. Home
(c) Lala Lajpat Rai
(d) Dayal Singh Majithia

(8). What is 'A' stand for in the CAR which is a term introduced in Basel-III norms of Banking? 
(a) Adequacy
(b) Asset
(c) Agreement
(d) Account

(9). In which of the following Bank Account there is a provision of Term Deposit only? 
(a) Non Resident Ordinary saving account(NRO)
(b) Foreign Currency Non -Resident account(FCNR)
(c) Non Resident External Account(NRE)
(d) None of the above Bank accounts has such kind of provision.

(10). In India, which of the following Banking Institutions do not represents 'Niche Banking'? (a) Payments Banks
(b) Small Finance Banks
(c) Non Banking Finance Companies(NBFC)
(d) All of the Above represents 'Niche Banking'


(1). Answer Key: (a) 
The prime motivation of MIGA as an International Financial Institution is to encourage a confident investment environment via the act of insurance against unforeseen situations, especially in developing nations.

(2). Answer Key: (d) 
National Financial Switch is a network of shared ATM’s. It was developed by Institute for Development and Research in Banking Technology (IDRBT), Hyderabad in 2004. It is run by the National Payment Corporation of India (NPCI) currently.

(3). Answer Key: (b) 
The full form of Demat Account is Dematerialized account. This is a type of bank account for citizens in India so that they can trade in stocks or debentures which are listed in the stock market. Just as a savings account contains money saved, a demat account has stocks saved.

(4). Answer Key: (d) 
Aadhaar Payment App is an initiative by the government for making cashless transactions through your multiple bank accounts. The universal app offers you to ease out your payments through any bank account without using the internet facility.

(5). Answer Key: (a)

(6). Answer Key: (c) T
he amount of financing Agreement has been signed between India and World Bank for the project TEJASWINI was USD 63 million. Tejaswini is a socio-economic empowerment of Adolescent girls and young women.

(7). Answer Key: (c) 
Lala Lajpat Rai, Founder of PNB, had cherished the idea that Indians should have a national bank of their own. He felt that the Indian capital was being used to run English banks and companies, the profits went entirely to the Britishers while Indians had to contend themselves with a small interest on their own capital.

(8). Answer Key: (a) 
According to new Basel-III norms, banks need to maintain a minimum capital adequacy ratio (CAR) of nine per cent, in addition to a capital conservation buffer, which would be in the form of common equity at 2.5 per cent of the risk weighted assets.

(9). Answer Key: (b) 
FCNR account is opened by NRIs In this account a person invest a fixed sum of money for a period not less than one year and max five years in any foreign currency in FCNR account . After the completion of fixed period principal and interest is paid in foreign currency in which he had deposited .In this way NRI are save from foreign exchange rate risk.

(10). Answer Key: (c) 
Niche Banks serve the needs of a specific demographic segment of the population. They typically target a specific market or type of customer(just like small finance banks). In India we have two categories of Niche Bank- Payments Banks and Small Finance Banks.

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