Banking Awareness - MCQs with answers - Part VI
1. What does RTGS enable?a) Immediate transfer of money from customer of one bank to customer of another bank
b) Immediate transfer of money from customer of one bank to customer of another branch within the same bank
c) Immediate transfer of money from customer of one bank to customer of another country
d) Immediate transfer of money from customer of one bank to customer of RBI
View Answer / Hide AnswerANSWER: a) Immediate transfer of money from customer of one bank to customer of another bank
Real Time Gross Settlement Systems are specialist fund transfer systems where transfer of money takes place on "real time" and on "gross basis"
a) Savings bank accounts and fixed deposit accounts
b) Current accounts and fixed deposit accounts
c) Savings bank accounts and cash accounts
d) Savings bank accounts and current accounts
View Answer / Hide AnswerANSWER: d) Savings bank accounts and current accounts
When a customer draws a cheque on a bank, it is a mandate on that bank to pay.
a) It can be paid only through a banker
b) It cannot be paid at all
c) It can be paid across the counter in another bank
d) None of the above
View Answer / Hide AnswerANSWER: a) It can be paid only through a banker
A crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed.
a) Agricultural sector
b) Industrial sector
c) Service sector
d) None of the above
View Answer / Hide AnswerANSWER: c) Service sector
The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks.
a) Amortization
b) Consortium
c) Moratorium
d) Subvention
View Answer / Hide AnswerANSWER: b) Consortium
A consortium is an association of two or more individuals, companies, organizations or governments with the objective of participating in a common activity or pooling their resources for achieving a common goal.
a) An instrument in the form of deposit receipt issued by Indian depositories
b) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
c) A deposit account with a Public Sector Bank
d) A depository account with any of Depositories in India
View Answer / Hide AnswerANSWER: b) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
Standard Chartered PLC became the first global company to file for an issue of Indian depository receipts in India.
a) Money borrowed or lent for a day or over night
b) Money borrowed for more than one day but up to 3 days
c) Money borrowed for more than one day but up to 7 days
d) Money borrowed for more than one day but up to 14 days
View Answer / Hide AnswerANSWER: a) Money borrowed or lent for a day or over night
If it exceeds one day, it is referred to as “notice moneyâ€.
a) Raise interest rates
b) Raise current supply
c) Reduce current supply
d) Reduce interest rates
View Answer / Hide AnswerANSWER: a) Raise interest rates
a) Invalid document
b) Ineligible to endorse to a person other than the payee
c) Remain the same
d) Ineligible to get cash across the bank counter
View Answer / Hide AnswerANSWER: b) Ineligible to endorse to a person other than the payee
Crossing ensures security to the holder of the cheque.
a) It is called settlement of the cheque
b) It is called withdrawing of the cheque
c) It is called nullifying of the cheque
d) It is called return of the cheque unpaid
View Answer / Hide AnswerANSWER: d) It is called return of the cheque unpaid
Insufficient fund, the death of the drawer, irregular signature, non-existing account, bankruptcy, frozen account, when there is attention, a post-dated cheque, if there is difference between the amount written in words and that in figures, when payment is stopped are the reasons why most bank cheques are being dishonoured.
