Banking Awareness,

Q1. The Doing Business Report” is prepared by which of the following organisations every year?

(a) Asian Development Bank (ADB)

(b) World Bank (WB)

(c) New Development Bank (NDB)

(d) World Trade Organization (WTO)

(e) None of the given options is true

Q2. Which of the following cannot be called as a debt instrument as referred in financial transactions?

(a) Certificate of Deposits

(b) Bonds

(c) Stock

(d) Commercial Paper

(e) None of the given options is true

Q3. Which of the following is not a type of cheque issued by an individual

(a) Bearer Cheque

(b) Crossed Cheque

(c) Order Cheque

(d) Savings Cheque

(e) None of the given options is true

Q4. “World Investment Report” is annually published by-

(a) IBRD

(b) WTO

(c) IMF

(d) UNCTAD

(e) ADB

Q5. Treasury bills are issued in India by ______

(a) RBI

(b) State Government

(c) Government of India

(d) SEBI

(e) NABARD

Q6. BCSBI was set up to ensure that the common person as a consumer of financial services from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been promised. BCSBI stands for-?

(a) Branch Codes and Standards Board of India

(b) Banking Codes and Stability Board of India

(c) Banking Codes and Standards Bank of Industry

(d) Banking Codes and Society Board of Investment

(e) Banking Codes and Standards Board of India

Q7. When was the currency system in India converted into the decimal system?

(a) April 01st 1959

(b) April 01st 1957

(c) April 01st 1955

(d) April 01st 1953

(e) April 01st 1951

Q8. Which of the following field Dalal Street in Mumbai is famous?

(a) NABARD

(b) Stock Exchange

(c) RBI

(d) SEBI

(e) Commerce and industry ministry

Q9. Deposits which can be withdrawn by a customer without notice is called?

(a) Time Deposits

(b) Demand Deposits

(c) Variable Deposits

(d) Low-cost Deposits

(e) None of the given options is true

Q10. Which of the following is not e-banking software?

(a) ECS

(b) RTGS

(c) PIPS

(d) NEFT

(e) M-Banking

Q11. ICRA, CRISIL, and Standard and Poor’s (S&P) are?

(a) Financial Institutions

(b) NGOs

(c) NBFCs

(d) Credit Rating Agencies

(e) None of the given options is true

Q12. Which of the following is not a member of the World Bank Group?

(a) International Development Association (IDA)

(b) International Bank for Reconstruction and Development (IBRD)

(c) International Finance Corporation (IFC)

(d) Bank of International Settlement (BIS)

(e) Multilateral Investment Guarantee Agency (MIGA)

Q13. Indian Banking Regulation Act was passed in the year-

(a) 1989

(b) 1968

(c) 1949

(d) 1948

(e) 1935

Q14. Which of the following is an apex institution in the field of Industrial Finance?

(a) Industrial Reconstruction Bank of India

(b) Industrial Finance Corporation of India

(c) Industrial Development Bank of India

(d) Industrial Credit & Investment Corporation of India

(e) None of the given options is true

Q15. The beneficiary can expect to get credit for the NEFT transactions within ______ business hours.

(a) two

(b) three

(c) one

(d) four

(e) ten

Solutions

S1. Ans.(b)

Sol. The Doing Business Report (DB) is a study elaborated by the World Bank Group every year that is aimed to measure the costs to firms of business regulations. The study has become one of the flagship knowledge products of the World Bank Group in the field of private sector development and is claimed to have motivated the design of several regulatory reforms in developing countries.

S2. Ans.(c)

Sol. Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate), mortgages, Commercial Paper and Certificate of Deposits.

S3. Ans.(d)

Sol. An order cheque can be a bearer cheque if the words or bearer are not cancelled out. A crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed.

S4. Ans.(d)

Sol. The World Investment Report has been published annually since 1991 by The United Nations Conference on Trade and Development (UNCTAD). Each year´s Report covers the latest trends in foreign direct investment around the World and analyses in depth one selected topic related to foreign direct investment and development.

S5. Ans.(c)

Sol. Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.

S6. Ans.(e)

Sol. In November 2003, Reserve Bank of India (RBI) constituted the Committee on Procedures and Performance Audit of Public Services under the Chairmanship of Shri S.S.Tarapore (former Deputy Governor) to address the issues relating to availability of adequate banking services to the common person. Therefore, the Committee recommended setting up of the Banking Codes and Standards Board of India (BCSBI). BCSBI was set up to ensure that the common person as a consumer of financial services from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been promised.

S7. Ans.(b)

Sol. The Indian currency system was converted into decimal system by Indian Coinage (Amendment) Act 1955 which brought into force from April 01st 1957.

S8. Ans.(b)

Sol. The Bombay Stock Exchange (BSE) is located at Dalal Street.

S9. Ans.(b)

Sol. A deposit of money that can be withdrawn without prior notice is known as Demand Deposits, Ex:- in a current account.

S10. Ans.(c)

Sol. ECS – Electronic Clearing Service.

RTGS - Real Time Gross Settlement.

NEFT- National Electronics Funds Transfer.

Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile. PIPS is not an e-banking software.

S11. Ans.(d)

Sol. A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely interest payments and the likelihood of default. Example:- ICRA, CRISIL, and Standard and Poor’s (S&P).

S12. Ans.(d)

Sol. The World Bank Group is made of the following five organisations: 

1. International Bank for Reconstruction and Development (IBRD), 

2. International Finance Corporation (IFC),

3. International Development Association (IDA),

4. Multilateral Investment Guarantee Agency (MIGA) and 

5. International Centre for Settlement of Investment Disputes (ICSID).

Where as Bank of International Settlement(BIS)is the Bank for International Settlements is an international financial institution owned by central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks”.

S13. Ans.(c)

Sol. The Banking Regulation Act, 1949 is legislation in India that regulates all banking firms in India. Initially, the law was applicable only to banking companies.

S14. Ans.(c)

Sol. Industrial Development Bank of India (IDBI) is the apex financial institution and besides providing financial assistance on consortium basis, the major function of coordination between the various institutions is looked after by the bank. It also provides refinance facility to the eligible financial institutions including term loans. The bank sanctions the financial assistance to the industrial concerns engaged in the manufacture or processing of goods, mining, transport generation and distribution of power etc. both in private and public sectors. Industrial Development bank of India (IDBI) was constituted under Industrial Development bank of India Act, 1964 as a Development Financial Institution and came into being as on July 01, 1964 vide GoI notification dated June 22, 1964. It was regarded as a Public Financial Institution in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank. 

S15. Ans.(a)

Sol. The beneficiary can expect to get credit for the NEFT transactions within two business hours (currently NEFT business hours is from morning 8 AM to evening 7 PM on all week days and from morning 8 AM to afternoon 1 PM on Saturdays) from the batch in which the transaction was settled.