Banking Awareness - MCQs with answers - Part VII
1. What are NEFT and RTGS about?a) Cheque truncation process
b) Electronic fund transfer from bank to bank
c) Electronic payment products within a bank
d) Various deposit products
View Answer / Hide AnswerANSWER: b) Electronic fund transfer from bank to bank
NEFT operates on a deferred net settlement (DNS) basis and settles transactions in batches. In RTGS, transactions are processed continuously, all through the business hours.
a) Wholly with Government of India
b) Jointly with Government of India and share-holders from the public
c) Jointly with Government of India and State Bank of India
d) Jointly with Government of India and Reserve Bank of India
View Answer / Hide AnswerANSWER: b) Jointly with Government of India and share-holders from the public
Public Sector Banks are banks where a majority stake is held by a government.
a) Chit Funds
b) Mutual Funds
c) Non-Banking Financial Companies
d) Reserve Bank of India
View Answer / Hide AnswerANSWER: a) Chit Funds
Mutual Funds, Non-Banking Financial Companies, Unit Trust of India, Reserve Bank of India are the parts of organized sector of India Money Market.
a) Flow of Foreign Direct Investment
b) Borrowing powers of the banks
c) Inflation
d) Liquidity in economy
View Answer / Hide AnswerANSWER: d) Liquidity in economy
Outright purchase and Repurchase agreement are the two traditional type of OMO's used by RBI.
a) Electronic Funds Transfer
b) Efficient Funds Transfer
c) Effective Funds Transfer
d) Electronic Foreign Transfer
View Answer / Hide AnswerANSWER: a) Electronic Funds Transfer
Electronic Funds Transfer is the transfer of money from one account to another through computer-based systems.
a) Bank on whom it is drawn will not honour the cheque before the date of the cheque
b) Bank on whom it is drawn has to honour the cheque before the date of the cheque
c) Bank on whom it is drawn has to refer to RBI to honour the cheque before the date of the cheque
d) Bank on whom it is drawn has to refer to court to honour the cheque before the date of the cheque
View Answer / Hide AnswerANSWER: a) Bank on whom it is drawn will not honour the cheque before the date of the cheque
Post-dated cheque is a cheque written by the drawer for a date in the future
a) CRR
b) SLR
c) Bank Rate
d) Exchange Control
View Answer / Hide AnswerANSWER: c) Bank Rate
RBI has been playing its role of supervision, control and development of the monetary and banking system in the country through Public Debt Management, Banker to Government, Bankers' Bank.
a) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 90 days
b) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 60 days
c) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 30 days
d) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for one year
View Answer / Hide AnswerANSWER: a) If the outstanding balance is less than the sanctioned limit/drawing power and no credits continuously for 90 days
If the outstanding balance remains continuously in excess of the sanctioned limit/drawing power and in cases where the outstanding balance is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days or the credits are not enough to cover the interest during the same period, then the account should be treated as “out of orderâ€.
a) 1920
b) 1925
c) 1931
d) 1935
View Answer / Hide AnswerANSWER: a) 1920
The Land Development Banks grant medium term loan for Land Development against the mortgage of lands. In some states these banks are known as Land Mortgage Banks. Land Mortgage Bank provides long term credit against the security of mortgage of land for a period of 5 to 20 years. The main objective of Land Development Bank is providing investment credit for agriculture.
