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 (17) Interest payable on savings bank accounts is regulated by which bank? Ans: RBI. of India has acquired RBI’s stake in one of the major banks of India. Question (28) What is the Expand term of ALM as used in Banking/Finance sector? Ans: Asset Liability Management. . Question (24) Lending to Micro Finance Institutions by Bank considered as finance to which sector? Ans: Priority Sector. Question (19) Which is not an electronic Banking delivery channel? Ans: Mobile Vans. Question (30) By which bank is the rate of interest on Savings Bank Account stipulated? Ans: RBI. Question (16) Which asset can be mortgaged? Ans: Land and Building. What is the full form of the term? Ans: Self Help Groups. Which that bank? Ans: State Bank of India. 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 (22) Which instrument cannot be transferred from one person to another by endorsement? Ans: Fixed Deposit Receipt. Question (25) What is money laundering? Ans: Conversion of Money which is illegally obtained. Question (21) Credit Cards are known by which another name? Ans: Plastic money. Question (20) The Govt. Question (18) Many times we read about SHGs in financial newspapers. Question (29) What is the full form of ‘ULIP’. 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. the term which was in the news recently? Ans: Unit Linked Insurance Plan. uestion (26) If PAN details are not provided. Question (23) What is the full form of ‘FINO’ a term we see frequently in financial newspapers? Ans: Financial Inclusion Network and Operations.Question (15) Which is ‘material alteration’ of a negotiable instrument? Ans: Converting an order cheque to bearer cheque.

Question (42) Almost all banks in our country have introduced which facility for granting crop loans to farmers? Ans: Kisan Credit Cards. Question (40) Fiscal policy in India is formulated by which ministry? Ans: The Finance Ministry. Question (45) Which is foreign bank having offices/branches in India? Ans: Standard Chartered Bank. . Question (38) What type of loan is granted by banks for purchase of white goods? Ans: Consumer durables loan. Question (33) Which is the loan of very small amounts given to low income groups? Ans: Micro credit. 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 (36) What is the name of cheque when a bank returns unpaid? Ans: Dishonor of the cheque. Question (41) Which institution is involved mainly in granting Housing Loans? Ans: HDFC. 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 (32) By which is insurance cover for bank deposits in our country provided? Ans: DICGC. what is he talking about? Ans: Corporate Debt Restructuring. Question (39) When a banker talks about CDR. 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 (56) Many a times we read in the news paper about CASA deposits of banks. Question (49) What is the mean of NEFT? Ans: National Electronic Funds Transfer system. Question (51) What does the letter ‘L’ stands for in the term LAF commonly used in financial/economic news? Ans: Liquidity. 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. CASA what are deposits? Ans: Demand deposits. 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 (48) Which state became the first state in the country to launch RBI’s e-payment system for commercial tax payers? Ans: Karnataka. Question (53) Which reserves can act as a liquidity buffer for commercial banks during crisis times? Ans: SLR. Question (47) What is the expand term of FLCC? Ans: Financial Literacy and Credit Counseling. Question (50) Interest on savings bank account is now calculated by banks on which basis? Ans: Daily product basis. Question (57) Credit risk to the bank is high from which of these cards? Ans: Credit cards. 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 (54) By whom are Savings’ bank accounts opened? Ans: Individuals for savings purposes. Question (52) Monetary Policy as an arm of the economic policy is administered by which bank? Ans: Reserve Bank of India.Question (46) Basel-II norms are associated with which aspect of the banking industry? Ans: Risk management. .