Banking Awareness - MCQs with answers - Part I
1. What is the full form of CBS?a) Core Banking Solution
b) Core Banking Software
c) Core Banking System
d) Core Banking Service
View Answer / Hide AnswerANSWER: a) Core Banking Solution
Core Banking Solution (CBS) is a delivery channel for quick and fast delivery.
a) Those borrowers who do not have a good credit history
b) Those borrowers who have a good credit history
c) Those borrowers who do not have a good debit history
d) Those borrowers who have a good debit history
View Answer / Hide AnswerANSWER: a) Those borrowers who do not have a good credit history
These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk.
a) Guidewire
b) Initial Public Offering
c) Predictive analytics
d) Underwriting
View Answer / Hide AnswerANSWER: d) Underwriting
Underwriting is provided by a bank, insurer or investment house.
a) Bank Rate
b) Discount Window
c) Monetary Policy
d) Overnight Rate
View Answer / Hide AnswerANSWER: a) Bank Rate
It is also referred to as the discount rate.
a) Basel II norms
b) Basel III norms
c) Basel I norms
d) Solvency II norms
View Answer / Hide AnswerANSWER: a) Basel II norms
Basel II is the second of the Basel Accords which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.
a) Cash Reserve Rate
b) Cash Reserve Ratio
c) Cash Recession Ratio
d) Core Reserve Rate
View Answer / Hide AnswerANSWER: b) Cash Reserve Ratio
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.
a) Maximum Alternate Tax
b) Minimum Alternate Tax
c) Maximum Alternate Time
d) Minimum Alternate Time
View Answer / Hide AnswerANSWER: b) Minimum Alternate Tax
The intent of introducing MAT was to ensure that no taxpayer with substantial income can avoid tax liability by using exclusions, deductions and incentives.
a) New Demand & Tenure Liabilities
b) Net Demand & Time Liabilities
c) National Deposits & Total Liquidity
d) Net Demand & Tax Liabilities
View Answer / Hide AnswerANSWER: b) Net Demand & Time Liabilities
The Cash Reserve Ratio of scheduled banks is fixed at a certain percentage of their NDTL.
a) Deep Recession
b) Deflation
c) Double-dip Recession
d) Double Inflation
View Answer / Hide AnswerANSWER: c) Double-dip Recession
A "double-dip recession" is also referred to as a "W-shaped" recession.
a) Bank for International Settlements Committee
b) Banking Regulation Committee
c) Financial Stability Board
d) Global Financial System
View Answer / Hide AnswerANSWER: a) Bank for International Settlements Committee
At the end of 1974, the central bank governors of the G10 countries established a Committee on Banking Regulations and Supervisory Practices. The Committee was designed as a forum for regular cooperation between its member countries on banking supervisory matters.
