Banking Awareness - MCQs with answers - Part II
1. What is the full form of NAV?a) Net Actual Value
b) Net Annual Value
c) Net Asset Value
d) Net Average Value
View Answer / Hide AnswerANSWER: c) Net Asset Value
NAV is calculated by the Asset Management Company (AMC) at the end of every business day.
a) A Company to a Bank
b) Banks to Banks
c) Banks to Companies
d) Company to its suppliers
View Answer / Hide AnswerANSWER: b) Banks to Banks
Commercial Paper is one of the instruments through which Corporates raise debt from the market.
a) Safe Window for Interbank Financial Transactions
b) Safe Window In case of Financial Transaction
c) Society for Worldwide Interbank Financial Telecommunication
d) Safe Window Institute For Transactions
View Answer / Hide AnswerANSWER: c) Society for Worldwide Interbank Financial Telecommunication
The Society for Worldwide Interbank Financial Telecommunication provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.
a) Forward Contract
b) Futures Contract
c) Market Contract
d) Standard Contract
View Answer / Hide AnswerANSWER: b) Futures Contract
Their main purpose is to mitigate risk of default by either party in the intervening period.
a) IBA
b) NABARD
c) RBI
d) SIDBI
View Answer / Hide AnswerANSWER: b) NABARD
National Bank for Agriculture and Rural Development has set up joint liability groups (JLG) of farmers to facilitate delivery of credit to farmers. Providing refinance to State Co-operative Banks, Scheduled Commercial Banks and Regional Rural Banks; co-ordinating the activities of different agencies in the field of agriculture and rural credit; improving absorptive capacity of credit delivery system are the major activities of NABARD.
a) CIBIL
b) CII
c) FRBI
d) IRDA
View Answer / Hide AnswerANSWER: a) CIBIL
Credit Information Bureau Limited is the first Credit Information Company in India.
a) IBA
b) IDRBT
c) IRDA
d) SIDBI
View Answer / Hide AnswerANSWER: b) IDRBT
Institute for Development & Research in Banking Technology is a banking research institute established by Reserve Bank of India in 1996.
a) EOQ
b) EPQ
c) JIT
d) OMO
View Answer / Hide AnswerANSWER: d) OMO
An Open Market Operation is an activity by a central bank to buy or sell government bonds on the open market.
a) FRBI
b) SEBI
c) SIDBI
d) RBI
View Answer / Hide AnswerANSWER: b) SEBI
The Securities and Exchange Board of India is the regulator for the securities market in India.
a) The currency is backed by Government Guarantee
b) The currency is backed by tangible assets
c) The currency is backed by gold reserves
d) The currency is backed by budgetary support
View Answer / Hide AnswerANSWER: a) The currency is backed by Government Guarantee
A fiat-money currency generally loses value once the issuing government or central bank either loses the ability to or refuses to further guarantee its value.
