Learn & Review (LR) Quiz (BANKING) : Part - 01
LR Quiz Full Name :
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| Q-1 | Cheque Clearing Between ICICI Bank, Bandra Branch and HDFC Bank, Bandra Branch is called………….? |
|---|---|
| Ans. | Local Clearing |
| Q-2 | Selling a higher variant of a product than what customer intends to buy is an example of |
| Ans. | Up-Sell |
| Q-3 | Cheque is a ______________instrument. |
| Ans. | Negotiable |
| Q-4 | A bank account, which has no transactions (except entries by bank for interest or charges), becomes dormant as per RBI guidelines after…………………………? |
| Ans. | 2 Years |
| Q-5 | What is the main function of a commercial bank? |
| Ans. | To offer financial services to businesses and individuals |
| Q-6 | NRO account can be opened in the form.....? |
| Ans. | (a) Savings and current account, (b) Fixed deposits, (c) Recurring deposits |
| Q-7 | Distribution of third party products helps banks to earn………………? |
| Ans. | Fee income |
| Q-8 | Which banking service allows customers to protect valuable items and important documents in a secure storage facility? |
| Ans. | Locker service |
| Q-9 | What is the primary role of banks in the financial system? |
| Ans. | To accept deposits and offer financial services |
| Q-10 | PAN Card consists of _____ characters, including ____alphabets and _____ numbers. |
| Ans. | (a) 10 characters, (b) 6 alphabets, (c) 4 numbers |
| Q-11 | Validity of DD is……………..from the date of issuance. |
| Ans. | 3 Months |
| Q-12 | If a cheque bears the date later than the date on which it is drawn, then this type of check is known as |
| Ans. | Post-Dated Cheque |
| Q-13 | Mr. Madan wanted to avail a motorcycle loan of Rs.2,00,000 and the value of the motorcycle is Rs.2,50,000. He is contributing Rs.50,000 from his own pocket. Calculate the Loan to Value Ratio..? |
| Ans. | The Loan to Value Ratio - 08 |
| Q-14 | Who amongst the following can act as depository participant? |
| Ans. | (a) Banks, (b) Brokerage houses, (c) Financial Institutions |
| Q-15 | Which of the following are regulated by RBI? |
| Ans. | (a) Indian banks, (b) Foreign banks, (c) Regional Rural Banks |
| Q-16 | What is the role of a vigilance officer? |
| Ans. | Detection of frauds |
| Q-17 | Which of the following activities are included in definition of NBFCs? |
| Ans. | Housing finance |
| Q-18 | Which of the following is a liability product of banks? |
| Ans. | Term deposit |
| Q-19 | What is the minimum transaction value under National Electronic Funds Transfer (NEFT)? |
| Ans. | No minimum transaction value. |
| Q-20 | Hypothecation Charge is generally created on |
| Ans. | Movable assets |
| Q-21 | Overdraft facility is available in |
| Ans. | (a) Savings account, (b) Current account |
| Q-22 | Capital used for day to day business activity of the organization is called………………..? |
| Ans. | Working Capital |
| Q-23 | Kavya is your bank customer, you recently sold her a mutual fund. This is called |
| Ans. | Cross-selling |
| Q-24 | In the banking parlance, CTS stands for – |
| Ans. | Cheque Truncation System |
| Q-25 | What is the minimum transaction value under Real Time Gross Settlement(RTGS)? |
| Ans. | 2 lakh |
| Q-26 | CIBIL score indicates |
| Ans. | Credit worthiness of the person |
| Q-27 | A cheque returned due to insufficient balance, is punishable with imprisonment for a term of 2 years or a fine of twice the cheque amount, as per………………………? |
| Ans. | Section 138 of Negotiable Instruments Act, 1881 |
| Q-28 | Which of the following is "Unsecured"? |
| Ans. | Credit Card |
| Q-29 | What is the primary function of a central bank in the economy? |
| Ans. | To control inflation and stabilize the currency |
| Q-30 | What type of account allows customers to earn interest on their savings while providing easy access to funds? |
| Ans. | Savings account |
| Q-31 | If any cheque issued by a holder does not get withdrawn from the bank till three months, then it is called |
| Ans. | Stale Cheque |
| Q-32 | What is the process of converting a physical cheque into an electronic transaction called? |
| Ans. | Check truncation |
| Q-33 | Which type of bank primarily focuses on providing financial advisory services, underwriting securities, and facilitating capital raising activities? |
| Ans. | Investment bank |
| Q-34 | Which of the following is NOT a function of RBI? |
| Ans. | Issue of coins |
| Q-35 | Which of the below is NOT a challenge faced by bankers in rural India? |
| Ans. | Dependence on winter season |
| Q-36 | Sales is not only about exchange of goods for money, but also………………..? |
| Ans. | (a) Understanding the customers' requirements, (b) Gaining her confidence and maintain that relationship, (c) Offering her a product that will help her meet her need |
Learn & Review (LR) Quiz (BANKING) : Part - 02
LR Quiz Full Name :
Click the ‘Correct Answer’ button to first learn the concepts and then click ‘Launch the Quiz’ to check your level of knowledge !
| Q-1 | Which type of bank account is typically used for everyday transactions and does not pay interest on the balance? |
|---|---|
| Ans. | Current account |
| Q-2 | Mr. Ramesh submitted a stop payment request on 1/1/2021. His bank didn’t process the request and the cheque was honored. Mr. Ramesh raised a complaint to the bank and didn’t get satisfactory reply. Whom can Mr. Ramesh approach as the last resort? |
| Ans. | Banking Ombudsman |
| Q-3 | What is the process of moving money from one bank account to another called? |
| Ans. | Transfer |
| Q-4 | Mr. Varma is travelling to USA on vacation with his family. He is looking to exchange Rs.3,00,000/- for US Dollars and approaches his banks facilitating foreign exchange. At the bank, the selling rate of USD is Rs.75. How many US Dollars will Mr. Varma get? |
| Ans. | 4000 USD |
| Q-5 | Compliance and ethics helps in minimizing? |
| Ans. | (a) Operational risk (b) Reputation risk (c) Legal risk |
| Q-6 | Which of the following is an example of Third Party product? |
| Ans. | Mutual Fund |
| Q-7 | What is the purpose of a fixed deposit account in a bank? |
| Ans. | To earn a higher rate of interest on savings over a fixed period |
| Q-8 | Modern day s cheques clearing system is known as……………….? |
| Ans. | CTS |
| Q-9 | Is the interest earned on NRO account taxable? |
| Ans. | Yes |
| Q-10 | Which of the following is NOT the objective of KYC? |
| Ans. | Prevention of business financing |
| Q-11 | Which of the following is NOT a party in respect of a cheque? |
| Ans. | Nominee |
| Q-12 | What is the primary function of a debit card in banking? |
| Ans. | To make purchases using funds available in the linked account |
| Q-13 | What is the role of central banks in the banking system? |
| Ans. | To issue currency and control monetary policy |
| Q-14 | Which banking service allows customers to borrow money from the bank for personal or business purposes and repay it over time? |
| Ans. | Loan service |
| Q-15 | What type of loan is secured by real estate, and the borrower risks losing the property if they fail to repay the loan? |
| Ans. | Mortgage loan |
| Q-16 | IFSC Code consists of ______ character. |
| Ans. | 11 character |
| Q-17 | Which of the following, defines a "Bank overdraft" |
| Ans. | It is credit given to meet an emergency |
| Q-18 | Which type of bank is owned and operated by its members, often serving specific communities or groups? |
| Ans. | Cooperative bank |
| Q-19 | What is the term for the process of verifying and recording financial transactions in a bank account? |
| Ans. | Account reconciliation |
| Q-20 | Who cannot open a savings account? |
| Ans. | Partnership |
| Q-21 | The Unified Payment Interface (UPI) has been developed by which among the following? |
| Ans. | National Payments Corporation of India |
| Q-22 | Account Opening is part of–––––––– |
| Ans. | Business development |
| Q-23 | Revalidation of Demand Draft is required if it is……………………? |
| Ans. | More than 3 month old |
| Q-24 | Minimum amount for RTGS transactions is………………..? |
| Ans. | Rs. 2,00,000 |
| Q-25 | Which of the following is NOT considered as an alternate delivery channel? |
| Ans. | Branch |
| Q-26 | What is the purpose of credit scores in banking? |
| Ans. | To assess the creditworthiness of an individual or business |
| Q-27 | What is the process of combining two or more smaller loans into a single larger loan with better terms called? |
| Ans. | Debt consolidation |
| Q-28 | Which among the following is issued in order to meet any future obligation for payment to a person? |
| Ans. | Post-dated cheque |
| Q-29 | What type of card allows customers to make purchases on credit and repay the amount at a later date? |
| Ans. | Credit Card |
| Q-30 | Hot listing of Debit card means…………………………….? |
| Ans. | Blocking the card |
| Q-31 | What does the term “overdraft” mean in banking? |
| Ans. | The negative balance that occurs when withdrawals exceed the available balance in an account |
| Q-32 | What is the process of making regular, fixed payments towards a loan balance called? |
| Ans. | Amortization |
| Q-33 | What does “ATM” stand for in the context of banking? |
| Ans. | Automated Teller Machine |
| Q-34 | Which of the following is NOT a stage in sales conversion process? |
| Ans. | Prospecting |
| Q-35 | KYC of a high risk customer needs to be updated every |
| Ans. | Every 2 years |
| Q-36 | What does the term “interest” refer to in banking? |
| Ans. | The rate at which a bank pays customers for holding their money in an account |
