Banking awareness important financial 100 terms - commerce-knotes

 Banking awareness 100 Questions:-

Banking awareness important 100 questions



● What is Shadow Banking?

Answer :- Financial transactions and other activities of non-banking financial intermediary,

● Devaluation of Mudra –

Answer :- Increases the exports and decreases the imports of a country,

● The RBI does not transact the business of which State government?

Answer :- Jammu and Kashmir,

● Income tax in India was introduced by –

Answer :- James Wilson,

● A PAN has initially a five-alphabet series like AFZPK 7190 K. Here P stands for –

Answer :- Individual,

● Long-term fiscal policy was announced by which Finance Minister of India?

Answer :- VP Singh,

● Which type of institution keeps information about the past credit history of customers?

Answer :- CIBIL,

● The National Payment Corporation of India (NPCI) has launched a mobile based payment facility. This facility is known as –

Answer :- IMPS,

● Bad loans in banking terminology are generally known as –

Answer :- NPA,

● The controlling authority of government expenditure is –

Answer :- The Finance Ministry,

● Effective Revenue Deficit was introduced in the Union Budget of –

Answer :- 2011-12,

● Interest payment is an item of –

Answer :-Revenue expenditure,

● Foreign currency which has a tendency of quick migration is called –

Answer :- Hot currency,

● Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on –

Answer :- 31st March, 1997,

● Convertibility of the rupee implies –

Answer :- Freely permitting the conversion of rupee to other major currencies and vice versa,

● Interest on savings bank account is now calculated by banks on which basis?

Answer :- Daily product basis,

● Which is the largest shareholder (in percentage shareholding) of a nationalized bank?

Answer :- Govt. of India,

● Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of which citizens?

Answer :- Senior citizens,

● Lending to Micro Finance Institutions by Bank considered as finance to which sector?

Answer :- Priority Sector,

● What is money laundering?

Answer :- Conversion of Money which is illegally obtained,

● Which is a measure taken by Reserve Bank of India to control inflation in our country?

Answer :- Raising of Repo / Reverse Repo Rate,

● What type of loan is granted by banks for purchase of white goods?

Answer :- Consumer durables loan,

● What are fixed deposits and recurring deposits?

Answer :- Repayable on demand,

● Which accounts are allowed to be operated by cheques?

Answer :- Savings bank accounts and current accounts,

● What is Mortgage?

Answer :- Security on immovable property for a loan given by a bank,

● Which will setup sore banking infrastructure for rural banks?

Answer :- NABARD,

● What is the name of cheque when a bank returns unpaid?

Answer :- Dishonor of the cheque,

● Which state became the first state in the country to launch RBI’s e-payment system for commercial tax payers?

Answer :- Karnataka,

● Interest payable on savings bank accounts is regulated by which bank?

Answer :- RBI,

● Many times we read about Hawala transactions in newspapers. Hawala in India is prohibited under the provision of which Act?

Answer :- Foreign Exchange Management Act,

● Which is material alteration of a negotiable instrument?

Answer :- Converting an order cheque to bearer cheque,

● Which loan constitutes the largest percentage of Retail loans in India?

Answer :- Home loans,

● Credit risk to the bank is high from which of these cards?

Answer :- Credit cards,

● Which is a Credit Card Association?

Answer :- Master Card,

● What is the Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as?

Answer :- Exchange rate,

● Which are the bank branches that can undertake foreign exchange business directly are known as in foreign exchange?

Answer :- Exchange branches,

● By which is insurance cover for bank deposits in our country provided?

Answer :- DICGC,

● Which is the loan of very small amounts given to low income groups?

Answer :- Micro credit,

● Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related to which industry/ market?

Answer :- Banking industry,

● What is the maximum period for which domestic term deposits are normally accepted by banks in our country?

Answer :- 10 years,

● Monetary Policy as an arm of the economic policy is administered by which bank?

Answer :- Reserve Bank of India,

● Which reserves can act as a liquidity buffer for commercial banks during crisis times?

Answer :- SLR,

● By whom are Savings bank accounts opened?

Answer :- Individuals for savings purposes,

● Many a times we read in the news paper about CASA deposits of banks. CASA what are deposits?

Answer :- Demand deposits,

● Assume that Reserve Bank of India reduces the Bank Rate by 1%, what will be its impact?

Answer :- More liquidity in the market,

● Whose signature is found on a 50 rupee currency note in India?

Answer :- Governor, RBI,

● Which institution is involved mainly in granting Housing Loans?

Answer :- HDFC,

● Almost all banks in our country have introduced which facility for granting crop loans to farmers?

Answer :- Kisan Credit Cards,

● What is meant by financial inclusion?

Answer :- Making available banking services at an affordable cost,

● Which agency/organization in India maintains the Micro. Finance Development and Equity Fund ?

Answer :- National Bank for Agriculture and Rural Development (NABARD),

● A bank branch receives a counterfeit note of Rs. 100 from the customer, which customer wants it back. Which action should be taken by the Bank?

Answer :- Will impound and not return,

● In India, which have the highest share in the disbursement of credit to agriculture and allied activities?

Answer :- Microfinance Institutions,

● What is the mean of Bad debts?

Answer :- Amounts owed to a company that are not going to be paid,

● What is the maximum permissible limit for investment in PDF account in a financial year?

Answer :- Rs. 150000,

● In our country, till when a cheque remains valid for payment for from the date of issue?

Answer :- 3 months,

● The Govt. of India has acquired RBI’s stake in one of the major banks of India. Which that bank?

Answer :- State Bank of India,

● Credit Cards are known by which another name?

Answer :- Plastic money,

● On domestic term deposits, banks in our country generally offer additional rate of interest on term deposits from which citizens?

Answer :- Senior citizens,

● Which instrument cannot be transferred from one person to another by endorsement?

Answer :- Fixed Deposit Receipt,

● Crossing applies to which instrument?

Answer :- Cheques,

● Salary payable by Government of India to an Indian Citizen for services outside India –

Answer :- Is taxable in India,

● Which asset can be mortgaged?

Answer :- Land and Building,

● Which is foreign bank having offices/branches in India?

Answer :- Standard Chartered Bank,

● Basel-II norms are associated with which aspect of the banking industry?

Answer :- Risk management,

● If PAN details are not provided, the TDS is deducted at which rate?

Answer :- 20%,

● What does the lowering of Bank Rate by the Reserve Bank of India leads to –

Answer :- More liquidity in the market,

● By which bank is the rate of interest on Savings Bank Account stipulated? –

Answer :- RBI,

● Which bodies regulates monetary policy in India?

Answer :- Reserve Bank of India,

● Resurgent India Bonds were issued in US Dollar, Pound Sterling and –

Answer :- Deutsche Mark,

● Currency market is regulated by the Reserve Bank of India (RBI), while currency futures” are jointly regulated by the RBI and which other banks ?

Answer :- SEBI,

● A bank without any branch network that offers its services remotely through online banking, telephone/mobile banking and inter-bank ATM network alliances is known as -

Answer :- Universal Banking,

● The present Indian monetary system is based on –

Answer :- Minimum Reserve System,

● In India, which is regulated by the forward Markets Commission?

Answer :- Commodities Futures Trading,

● Goodwill account is a –

Answer :- Real account,

● Financial year in banks is a period from –

Answer :- April to March,

● If saving exceeds investment, how will the national income?

Answer :- Remain constant,

● How does a decrease in SLR affect the market?

Answer :- Liquidity increases,

● What does DTL stand for in the field of banking?

Answer :- Demand and Time Liabilities,

● Real time settlement of fund transfer is known as –

Answer :- RTGS,

● In banking business, when the borrowers avail a Term Loan, Initially they are given a repayment holiday and this is referred to as -

Answer :- Moratorium,

● Interest below which a bank is not expected to lend to customers is known as -

Answer :- Base Rate,

● Interest on Savings deposit nowadays is -

Answer :- Fixed by the respective Banks,

● Banking Ombudsman is appointed by -

Answer :- RBI,

● Bank deposits that can be withdrawn without notice are called -

Answer :- Demand deposits,

● Suvidha Fixed Deposit scheme was launched by which bank?

Answer :- IDBI,

● What does Demonetization mean?

Answer :-Withdrawal of currency from circulation which is done to ambush black market,

● Increase in cash reserve ratio leads to -

Answer :- decrease in bank credit,

● The Reserve Bank of India came into existence on -

Answer :- April 1, 1936,

● How many banks were nationalized in 1969?

Answer :- 14,

● The Reserve Bank of India issues notes under the following note issue method -

Answer :- Minimum reserve system,

● The place where bankers meet and settle their mutual claims and accounts is known as -

Answer :- Clearing House,

● Banks in India were nationalised for the first time in the year -

Answer :- 1969,

● In India since Independence -

Answer :- the rate of savings and investment have gone up,

● When was the IDBI ( Industrial Development Bank of India ) instituted?

Answer :- 1964,

● When was the Reserve Bank of India taken over by the Government?

Answer :- 1948,

● Bank rate is the rate of interest -

Answer :- At which Commercial Banks borrow money from RBI,

● The highest denomination of currency notes in circulation as legal tender in India is a present -

Answer :- Rs. 1000,

● Who headed the Committee on Computerisation in Indian banks (1988)?

Answer :- M. Narasimhan,

● The Reserve Bank of India issues -

Answer :- all the currency notes except the one rupee note,

● The main function of the Exim Bank is -

Answer :- to promote exports and curtail imports,

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