Important Banking Awareness Quizzes (Topic Wise) Day-199

Dear Readers, Here we have provided the Important Banking Awareness Quizzes based on particular topic, which will help to understand and prepare in a better way. Candidates those who are preparing for upcoming IBPS/SBI Exams 2018 can make use of it.

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1. _____________is a loan that is made for a very short period of a few days only with a low rate of interest

a) Call Money

b) Notice Money

c) Term Money

d) All of the above

e) None of these

2. _______________ is the rate at which RBI borrows money from banks when it feels there is too much money floating in the banking system

a) Repo Rate

b) Reverse Repo Rate

c) Cash Reserve Ratio

d) Bank Rate

e) None of these

3. ____________ is the ability of converting an investment quickly into cash with no loss in value

a) Bancassurance

b) Capitalization

c) Deficit

d) Marketing

e) None of these

4. ______________ is similar to retail banking with a slight difference that it mainly focuses on the financial needs of the institutional clients and the industry

a) Rural Banking

b) Net Banking

c) Wholesale Banking

d) Commercial Banking

e) None of these

5. __________ is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in the price level

a) Capitalization

b) Deflation

c) Privatization

d) Inflation

e) None of these

6. Internet banking is sometimes known as _____________

a) Indirect Banking

b) Direct Banking

c) Offline Banking

d) Virtual Banking

e) None of these

7. _____________is a financial ratio which gives us an idea or a measure of a company’s ability to meet its financial losses

a) Current Ratio

b) Leverage Ratio

c) Depreciation Ratio

d) Average Ratio

e) None of these

8. When financial institutions and banks undertake activities related to banking like investment, issue of debit and credit card etc then it is known as ____________

a) Universal Banking

b) Rural Banking

c) Retail Banking

d) Net Banking

e) None of these

9. Commercial banks borrow funds by the RBI if there is any shortage in the form of rupees, it is called as _____________

a) Reverse Repo Rate

b) Cash Reserve Ratio

c) Bank Rate

d) Interest Rate

e) None of these

10. ________________ is the amount of Funds borrowed by the government to meet the expenditures

a) Deflation

b) Statutory Liquidity Ratio

c) Fiscal Deficit

d) Inflation

e) None of these

11. _______________is the time when a company makes the first offering of the shares to the public

a) Market Selling

b) Open Selling

c) Direct Selling

d) Initial Public Offering

e) None of these

12. ________________is a kind of security which one offers for taking an advance or loan from someone

a) Hypothecation

b) Pledge

c) Mortgage

d) Liquidity

e) None of these

13. Rate of interest at which a bank gives loan to its most reliable customer is called ___________

a) Basic Lending Rate

b) High Lending Rate

c) Low Lending Rate

d) Average Lending Rate

e) None of these

14. ___________is the amount of funds that a bank keeps with the RBI. If the percentage of CRR increases then the amount with the bank comes down

a) Statutory Liquidity Ratio

b) Cash Reserve Ratio

c) Average Ratio

d) Bank Asset Ratio

e) None of these

15. Doing banking from a cubicle from which food, newspapers, tickets, etc are also sold is called _______________

a) Kiosk Banking

b) Universal banking

c) Net Banking

d) Virtual Banking

e) None of these

Answers:

1. Call money is a loan that is made for a very short period of a few days only with a low rate of interest

Correct Answer is: a)

2. It is the exact opposite of repo rate. It is the rate at which RBI borrows money from banks when it feels there is too much money floating in the banking system. It is called Reverse Repo Rate

Correct Answer is: b)

3. Liquidity is the ability of converting an investment quickly into cash with no loss in value.

Correct Answer is: e)

4. Wholesale Banking is similar to retail banking with a slight difference that it mainly focuses on the financial needs of the institutional clients and the industry.

Correct Answer is: c)

5. Inflation is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in the price level

Correct Answer is: d)

6. Internet banking is sometimes known as virtual banking. It is called so because it has no bricks and boundaries. It is controlled by the World Wide Web

Correct Answer is: d)

7. Leverage Ratio is a financial ratio which gives us an idea or a measure of a company’s ability to meet its financial losses

Correct Answer is: b)

8. When financial institutions and banks undertake activities related to banking like investment, issue of debit and credit card etc then it is known as universal banking.

Correct Answer is: a)

9. Commercial banks borrow funds by the RBI if there is any shortage in the form of rupees. If this rate increases it becomes expensive to borrow money from RBI and vice versa. It is called Repo Rate

Correct Answer is: e)

10. Fiscal Deficit is the amount of Funds borrowed by the government to meet the expenditures.

Correct Answer is: c)

11. Initial Public Offering is the time when a company makes the first offering of the shares to the public.

Correct Answer is: d)

12. Mortgage is a kind of security which one offers for taking an advance or loan from someone.

Correct Answer is: c)

13. Rate of interest at which a bank gives loan to its most reliable customer i.e., customer with, zero risk is called Prime Lending Rate (PLR)

Correct Answer is: e)

14. Cash Reserve Ratio is the amount of funds that a bank keeps with the RBI. If the percentage of CRR increases then the amount with the bank comes down.

Correct Answer is: b)

15. Doing banking from a cubicle from which food, newspapers, tickets, etc are also sold is called Kiosk Banking

Correct Answer is: a)

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