Banking Awareness Test Questions - Set 6

ANSWER: Net Asset Value

Explanation:
NAV is calculated by the Asset Management Company (AMC) at the end of every business day.

ANSWER: Futures Contract

Explanation:
Their main purpose is to mitigate risk of default by either party in the intervening period.

ANSWER: Balance sheet

Explanation:
A balance sheet is described as a " snapshot of a company's financial condition "

ANSWER: IPO

Explanation:
Initial Public Offering (IPO) or stock market launch is a type of public offering. A private company transforms into a public company through this process.

ANSWER: Universal banking

Explanation:
Universal banks may offer credit, loans, deposits, asset management, investment advisory, payment processing, securities transactions, underwriting and financial analysis.

ANSWER: Virtual Banking

Explanation:
Internet banking is known as virtual banking. It is called so because it has no bricks and boundaries.

ANSWER: Net Interest Margin

Explanation:
Net Interest Margin (NIM) is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders.

ANSWER: Switzerland

Explanation:
The Bank of International Settlement (BIS) was established on May 17, 1930.

ANSWER: Cash Reserve Ratio

Explanation:
Cash Reserve Ratio is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves with the central bank.

ANSWER: 1881

Explanation:
Oudh Commercial Bank, the first bank with limited liability managed by Indians, was founded in 1881.

ANSWER: New Bank of India

Explanation:
The New Bank of India which was running at a loss was united with the Punjab National Bank in September 1993. 19 nationalised banks along with the State Bank of India, which was nationalised in 1956, now constitute the public sector banks.

ANSWER: State Bank of India

Explanation:
In 1961, mutual fund was introduced in India.

ANSWER: Leverage Ratio

Explanation:
It is meant to evaluate a company's debt levels.

ANSWER: This is the fund which is dumped into a country to get the advantage of a favourable interest rate

Explanation:
It can move in and out of the market very quickly leading to market instability.

ANSWER: Golden Jubilee Rural Housing Finance Scheme

Explanation:
The National Housing Bank monitors the performance of the Golden Jubilee Rural Housing Finance Scheme implemented through the scheduled banks of HDFC and the Cooperative Sector Institutions. During 2009-10, 3.9 lakh dwelling units were successfully financed against a target of 3.5 lakh units.

ANSWER: TILA

Explanation:
The Truth in Lending Act (TILA) is a Federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. Lenders must provide information on what credit will cost the borrowers, when charges will be imposed, and what the borrower's rights are as a consumer.

ANSWER: 2

Explanation:
Indian Institute of Management (IIM) in Jammu & Kashmir & Andhra Pradesh is proposed to be set up.

ANSWER: 6

Explanation:
In the fiscal year 2015-16, Union Govt. proposed to set up All India Institutes of Medical Sciences in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.

ANSWER: Pradhan Mantri Vidya Laxmi Scheme

Explanation:
No explanation is available for this question!

ANSWER: 2016

Explanation:
GST will put in place a state-of-the-art indirect tax system from next fiscal, aiming to create a single tax for goods and services across the country. In the Union Budget 2015-16 presented by the Finance Minister Arun Jaitley proposed to roll out the GST from next fiscal beginning April 2016.