IMPORTANT QUESTIONS OF BANKING AWARENESS

Important Questions of Banking Awareness
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1) Since April 1, 2012__________has become the validity of cheques and bank drafts.
(a) 2 months (b) 3 months
(c) 4 months (d) 6 months

2) ________has been declared the first ‘total banking state’ in India, successfully implementing
the total financial inclusion thereby ensuring banking facility to all households.
(a) Maharashtra (b) Kerala
(c) Himachal Pradesh (d) Uttarakhand

3) What does FSDC stand for?
(a) Financial Security and Development Council
(b) Financial Stability and Development Council
(c) Fiscal Security and Development Council
(d) Fiscal Stability and Development Council

4) On what basis is Ad Valorem Tax levied?
(a) Volume (b) Value
(c) Imports (d) Exports

5) What does liquidity mean?
(a) It means how cash is converted into gold
(b) It means how cheaply and quickly an asset is converted into cash
(c) It means how cash is converted into SDR (Special Drawing Rights)
(d) It means how uncertain the money market conditions are

6) What does the term Open Market Operations refer to?
(a) Selling of equities in the open market
(b) Selling of commodities in the open market
(c) Buying and selling of government securities in the open market
(d) Buying and selling of products in the wholesale market

7)RBI has introduced “Marginal Standing Facility” with the objective of
a) Controlling Inflation
(b) Containing instability in long term inter-bank rates
(c) Containing instability in the overnight inter-bank rates
(d) All of the above

8) National income of India is estimated by
(a) NCAER (b) Ministry of Statistics
(c) Central Statistical Office (d) Ministry of Finance

9) ________is the percentage of total deposits of a bank which it has to keep with itself in the form of
liquid assets.
(a) Statutory Liquidity Ratio (SLR) (b) Cash Reserve Ratio (CRR)
(c) Statutory Reserve Ratio (d) Cash Ratio

10) Often, we read in newspapers that the RBI has changed the Repo rate and the Reverse Repo rate by a
few basis points. What is a basis point?
(a) Ten % of one hundredth point (b) One hundredth of 1%
(c) One tenth of 1% (d) Ten % of 100

Answers are-
1-B
2-B
3-B
4-B
5-B
6-C
7-C
8-C
9-A
10-B