Banking Awareness

Q1. In which of the following types of banking, there is a direct execution of transaction between a bank and its consumers?

(a) Retail Banking

(b) Universal Banking

(c) Virtual Banking

(d) Unit Banking

(e) None of the given options is true

S1. Ans.(a)

Sol. Retail banking also known as Consumer Banking is the provision of services by a bank to individual consumers, rather than to companies,

 corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards.

Q2. Maximum loan amount to individuals against physical security shares can be _____

(a) 20 lakh

(b) 15 lakh

(c) 25 lakh

(d) 50 lakh

(e) 10 lakh

S2. Ans.(e)
Sol. Loans/ advances granted to individuals against the security of shares, debentures and PSU bonds should not exceed Rs.10 lakh and Rs.20 lakh,

 if the securities are held in physical form and dematerialized form respectively.

Q3. The process by which the central bank of a country controls the supply of money in the economy by exercising its control over -

interest rates in order to maintain price stability and achieve high economic growth is known as:

(a) Economic Policy

(b) Monetary Policy

(c) Fiscal Policy

(d) Credit Policy

(e) Budgetary Policy

S3. Ans.(b)
Sol. Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy

 by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, 

the central monetary authority is the Reserve Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Q4. Loans granted by a bank to an exporter popularly known as ‘Export credit’ is guaranteed, in case of default,by which of the following

(a) EXIM Bank

(b) Ministry of International Trade, GOA

(c) ECGC

(d) DICGC

(e) None of the given options is true

S4. Ans.(c)
Sol. ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai,

 Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce.

Q5. Who amongst the following is the regulator in the financial system of the country?

(a) OIC

(b) SEBI

(c) CRISIL

(d) TRAN

(e) CERC

S5. Ans.(b)
Sol. The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds.

 Example of Financial Regulators: RBI, IRDAI, SEBI, PFRDA.

Q6. Which Bank has launched instant credit cards enabling its savings account customers to get a credit card instantly, 

in a completely digital and paperless manner recently?

(a) State Bank of India

(b) ICICI Bank

(c) Axis Bank

(d) Bank of Baroda

(e) HDFC Bank

S6. Ans.(b)
Sol. The country's largest private sector lender, ICICI Bank has launched instant credit cards enabling its savings account 

customers to get a credit card instantly, in a completely digital and paperless manner.

Q7. Private sector lender IDFC Bank has partnered with digital payments company Zeta, to launch ‘IDFC Bank Benefits’.

 It is a payment solution for corporates that digitizes employee spends and claims, making the process simple, real-time and paperless.

 Where is the head office of IDFC Bank?

(a) Chennai

(b) New Delhi

(c) Jaipur

(d) Kolkata

(e) Mumbai

S7. Ans.(e)
Sol. Private sector lender IDFC Bank has partnered with digital payments company Zeta, to launch ‘IDFC Bank Benefits’. 

It is a payment solution for corporates that digitizes employee spends and claims, making the process simple, real-time and paperless.

 The Head office of IDFC Bank is in Mumbai.

Q8. Syndicate Bank has pared its marginal cost of funds based lending rate (MCLR) by 5-10 basis points in certain maturity

 buckets recently. Where is the headquarter of Syndicate Bank?

(a) Lucknow, Uttar Pradesh

(b) Jaipur, Rajasthan

(c) Kolkata, west Bengal

(d) Manipal, Karnataka

(e) Chennai, Tamil Nadu

S8. Ans.(d)
Sol. Syndicate Bank has pared its marginal cost of funds based lending rate (MCLR) by 5-10 basis points in certain maturity buckets. 

MCLR for six months and one year will be 8.3 per cent (8.35 per cent now) and 8.5 per cent (8.60 per cent now), respectively, with effect from August 10. 

Headquarter of Syndicate Bank is in Manipal, Karnataka.

Q9. India signed a loan agreement with Asian Infrastructure Investment Bank (AIIB) for financing of USD 329 million for Gujarat Rural Roads Project. AIIB based in-?

(a) Japan

(b) China

(c) Germany

(d) France

(e) USA

S9. Ans.(b)
Sol. India signed a loan agreement with Asian Infrastructure Investment Bank (AIIB) for financing of USD 329 million for Gujarat Rural Roads Project. 

Headquarters of AIIB is located in Beijing, China.

Q10. Private sector lender Axis Bank reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to-

(a) Rs 1 lakh 

(b) Rs 80 lakh 

(c) Rs 20 lakh 

(d) Rs 50 lakh

(e) Rs 10 lakh

S10. Ans.(d)
Sol. Private sector lender Axis Bank reduced interest rate on savings bank accounts by 50 basis points to 

3.5 per cent for deposits up to Rs 50 lakh. However, the bank will continue to pay 4 per cent interest on deposits of above Rs 50 lakh.