Banking Awareness - MCQs with answers - Part IV
1. Which among the following made the initial contribution for setting up Financial Inclusion Fund and Financial Inclusion Technology Fund?a) Government of India, NABARD and RBI
b) NABARD, UTI and RBI
c) SIDBI, Government of India and IDBI Bank
d) SIDBI, NABARD and UTI
View Answer / Hide AnswerANSWER: a) Government of India, NABARD and RBI
The objectives of the FIF shall be to support “developmental and promotional activities with a view to securing greater financial inclusion, particularly among weaker sections, low income groups and in backward regions/hitherto unbanked areas. The objectives of FITF shall be to enhance investment in Information Communication Technology (ICT) aimed at promoting financial inclusion, stimulate the transfer of research and technology in financial inclusion, increase the technological absorption capacity of financial service providers/users and encourage an environment of innovation and cooperation among stakeholders.
a) Cost risk
b) Demand risk
c) Market risk
d) Systemic risk
View Answer / Hide AnswerANSWER: c) Market risk
Market risks include equity risk, interest rate risk, currency risk, and commodity risk.
(i) When mutual funds are sold without telling the likely returns
(ii) When agents sell the products without telling investors what are the risks involved in investing in mutual funds
(iii) When agents invest somebody's money in mutual funds without their knowledge
a) Only (ii)
b) Both (i) and (iii)
c) All (i), (ii) and (iii)
d) None of the above
View Answer / Hide AnswerANSWER: c) All (i), (ii) and (iii)
Selling life insurance to someone who has no dependents is regarded as misselling.
a) This is the fund which is dumped into a country to get the advantage of a favourable interest rate
b) This is the fund which is provided by a bank in US $ at very short notice and at a very high rate of interest and for a longer period of repayment
c) This is the fund which is pushed into market through illegal methods
d) None of the above
View Answer / Hide AnswerANSWER: a) This is the fund which is dumped into a country to get the advantage of a favourable interest rate
They can move in and out of the market very quickly leading to market instability.
a) Commission on locker
b) Exchange on locker
c) Rent on locker
d) Safe custody charges
View Answer / Hide AnswerANSWER: c) Rent on locker
A safe deposit box is an individually secured container usually held within a larger safe or bank vault.
a) Current Account
b) No frill account
c) Savings Bank-ordinary Account
d) Students Savings Bank Account
View Answer / Hide AnswerANSWER: b) No frill account
a) Reclamation
b) Reformation
c) Regulation
d) Rule
View Answer / Hide AnswerANSWER: c) Regulation
Winding up of a banking company is done under the provisions of the Banking Regulation Act, 1949. The reasons for this are inability to pay its debts; moratorium placed on the bank or failure to comply with minimum capital adequacy; failure to comply with requirements of Banking Regulation Act.
a) A security created on immovable property for a deposit received by a bank
b) A security created on immovable property for a loan given by a bank
c) A facility created on movable property for a deposit received by a bank
d) A security created on movable property for a loan given by a bank
View Answer / Hide AnswerANSWER: b) A security created on immovable property for a loan given by a bank
In the case of creation of registered mortgages, the mortgage deed should be presented for registration with Registrar of Assurances within 4 months from the date of execution of the deed.
a) Bank rate
b) Base rate
c) Overnight rate
d) None of the above
View Answer / Hide AnswerANSWER: b) Base rate
It is also known as prior probabilities.
a) Balance sheet
b) Cash flow statement
c) Income statement
d) Model audit
View Answer / Hide AnswerANSWER: a) Balance sheet
A balance sheet is described as a "snapshot of a company's financial condition".
