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Question (1) What is the maximum period for which domestic term deposits

are normally accepted by banks in our country?


Ans: 10 years.
Question (2) Which agency/organization in India maintains the Micro.
Finance Development and Equity Fund?
Ans: NABARD.
Question (3) Which is a Credit Card Association?
Ans: Master Card.
Question (4) What is the mean of Bad debts?
Ans: Amounts owed to a company that are not going to be paid.
Question (5) What is the maximum permissible limit for investment in PDF
account in a financial year?
Ans: Rs. 70,000
Question (6) The letter F denotes which word in the term IFRS?
Ans: Financial.
Question (7) Which loan constitutes the largest percentage of Retail loans in
India?
Ans: Home loans.
Question (8) What is meant by financial inclusion?
Ans: Making available banking services at an affordable cost.
Question (9) Many times we read the term ECB in newspapers. What is the
full form of ECB?
Ans: External Commercial Borrowing.
Question (10) In our country, till when a cheque remains valid for payment
for from the date of issue?
Ans: 3 months.
Question (11) Crossing applies to which instrument?
Ans: Cheques.
Question (12) While investing in mutual funds we come across a term called
NAV. What is the meaning of NAV?
Ans: Net Asset Value.
Question (13) Assume that Reserve Bank of India reduces the Bank Rate by
1%, what will be its impact?
Ans: More liquidity in the market.
Question (14) Whose signature is found on a 50 rupee currency note in India?
Ans: Governor, RBI.
Question (15) Which is material alteration of a negotiable instrument?
Ans: Converting an order cheque to bearer cheque.
Question (16) Which asset can be mortgaged?
Ans: Land and Building.
Question (17) Interest payable on savings bank accounts is regulated by
which bank?
Ans: RBI.
Question (18) Many times we read about SHGs in financial newspapers.
What is the full form of the term?
Ans: Self Help Groups.
Question (19) Which is not an electronic Banking delivery channel?
Ans: Mobile Vans.
Question (20) The Govt. of India has acquired RBIs stake in one of the major
banks of India. Which that bank?
Ans: State Bank of India.
Question (21) Credit Cards are known by which another name?
Ans: Plastic money.
Question (22) Which instrument cannot be transferred from one person to
another by endorsement?
Ans: Fixed Deposit Receipt.
Question (23) What is the full form of FINO a term we see frequently in
financial newspapers?
Ans: Financial Inclusion Network and Operations.
Question (24) Lending to Micro Finance Institutions by Bank considered as
finance to which sector?
Ans: Priority Sector.
Question (25) What is money laundering?
Ans: Conversion of Money which is illegally obtained.
uestion (26) If PAN details are not provided, the TDS is deducted at which
rate?
Ans: 20%
Question (27) What does the lowering of Bank Rate by the Reserve Bank of
India leads to?
Ans: More liquidity in the market.
Question (28) What is the Expand term of ALM as used in Banking/Finance
sector?
Ans: Asset Liability Management.
Question (29) What is the full form of ULIP, the term which was in the news
recently?
Ans: Unit Linked Insurance Plan.
Question (30) By which bank is the rate of interest on Savings Bank Account
stipulated?
Ans: RBI.
Question (31) What is the Rate at which the domestic currency can be
converted into foreign currency and vice-versa is known as?
Ans: Exchange rate.
Question (32) By which is insurance cover for bank deposits in our country
provided?
Ans: DICGC.
Question (33) Which is the loan of very small amounts given to low income
groups?
Ans: Micro credit.
Question (34) What is Mortgage?
Ans: Security on immovable property for a loan given by a bank.
Question (35) Which will setup sore banking infrastructure for rural banks?
Ans: NABARD.
Question (36) What is the name of cheque when a bank returns unpaid?
Ans: Dishonor of the cheque.
Question (37) Which is a measure taken by Reserve Bank of India to control
inflation in our country?
Ans: Raising of Repo / Reverse Repo Rate.
Question (38) What type of loan is granted by banks for purchase of white
goods?
Ans: Consumer durables loan.
Question (39) When a banker talks about CDR, what is he talking about?
Ans: Corporate Debt Restructuring.
Question (40) Fiscal policy in India is formulated by which ministry?
Ans: The Finance Ministry.

Question (41) Which institution is involved mainly in granting Housing


Loans?
Ans: HDFC.
Question (42) Almost all banks in our country have introduced which facility
for granting crop loans to farmers?
Ans: Kisan Credit Cards.
Question (43) Banks in our country normally publicise that additional
interest rate is allowed on retail domestic term deposits of which citizens?
Ans: Senior citizens.
Question (44) What are fixed deposits and recurring deposits?
Ans: Repayable on demand.
Question (45) Which is foreign bank having offices/branches in India?
Ans: Standard Chartered Bank.
Question (46) Basel-II norms are associated with which aspect of the banking
industry?
Ans: Risk management.
Question (47) What is the expand term of FLCC?
Ans: Financial Literacy and Credit Counseling.
Question (48) Which state became the first state in the country to launch
RBIs e-payment system for commercial tax payers?
Ans: Karnataka.
Question (49) What is the mean of NEFT?
Ans: National Electronic Funds Transfer system.
Question (50) Interest on savings bank account is now calculated by banks on
which basis?
Ans: Daily product basis.
Question (51) What does the letter L stands for in the term LAF commonly
used in financial/economic news?
Ans: Liquidity.
Question (52) Monetary Policy as an arm of the economic policy is
administered by which bank?
Ans: Reserve Bank of India.
Question (53) Which reserves can act as a liquidity buffer for commercial
banks during crisis times?
Ans: SLR.
Question (54) By whom are Savings bank accounts opened?
Ans: Individuals for savings purposes.
Question (55) For repayment of loan availed from Banks NBFC we come
across a term known as EMI What does it stand for?
Ans: Equated Monthly Installment.
Question (56) Many a times we read in the news paper about CASA deposits
of banks. CASA what are deposits?
Ans: Demand deposits.
Question (57) Credit risk to the bank is high from which of these cards?
Ans: Credit cards.
Question (58) Why does depreciation of an asset occur?
Ans: Wear and tear.
Question (59) Which accounts are allowed to be operated by cheques?
Ans: Savings bank accounts and current accounts.
Question (60) What does the letter L denote in term LAF as referred every
now and then in relation to monetary policy of the RBI?
Ans: Liquidity.

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