Dear readers,

Here we are presenting you a quiz on Banking Awareness, which will be helpful in your upcoming exams like NABARD, LIC AAO etc. So please try to give your answers in comment box, soon we will post the correct answers.

1. MAT’ provision in Income Tax stands for –

(1) Medium
Alternate Tax  

(2) Maximum
Alternate Tax  

(3) Minimum
Alternate Tax  

(4) Mild
Alternate Tax  

(5) None of
these  

2. Which of the following terms is NOT used in the field of banking and
finance?

(1) Blue
chip companies    

(2)
Commercial paper 

(3) Hedge                  

(4) Premium
Bonds

(5) Wobbe
Index 

3. Assume that Reserve Bank of India reduces the
Bank Rate by 1%, what will be its impact?

(1) Less
liquidity in the market  

(2) More
liquidity in the market  

(3) No
change in the liquidity in the market

(4) Mobilization
of more deposits by commercial banks   

(5) None of
these  

4. The market in which long term securities such
as stocks are bought and sold is commonly known as –

(1) Bullion
Market                

(2) Commodities
Exchange   

(3) Capital
Market

(4) Money Market

(5) None of these

5. For which one of the following Loan Products teaser
loans’ are offered by Banks?

(1)
Education Loans             

(2) Commercial
Loans  

(3) Loans
against security of gold  

(4) Retail
Trade Loans  

(5) Home
Loans  

6. ________ is a tool for general credit control
used by RBI which not only influences the flow of liquidity for the purpose of
expansion or contraction of credit but also helps RBI to stabilize money supply
and prices of Government securities: 

(1) Bank
Rate                          

(2) CRR/SLR

(3) Open Market Opeation                                     

(4) Direct
Auction   

(5) None of
these

7. As per Section 6 of the Banking Regulation
Act, a banking company can undertake:

(1) Merchant
banking.  

(2) Issue of
guarantee and indemnity  

(3) Executor
and trustee business

(4) All of
the above  

(5) None of these 

8. Which of the following banks was not
nationalized in 1969?

(1) Punjab
National Bank  

(2) Bank of
India

(3) State
Bank of India        

(4) Bank of
Baroda

(5) Bank of
Maharashtra

9. India is following a system of “fiat money”,
while issuing currency. What is fiat money?

(1) The
currency is backed by Government Guarantee 

(2) The
currency is backed by tangible assets 

(3) The
currency is backed by gold reserves 

(4) The
currency is backed by budgetary support 

(5) None of
these 

10. Which of the following assets can be
mortgaged?

(1) Stock  
 

(2) Book Debts  

(3) National Savings Certificates

(4) Shares  

(5) Land and Building  

Answers:

Qs 1 (3)   Qs 2 (5)  
Qs 3 (2)   Qs 4 (3)  Qs 5 (5)

Qs 6 (3)  Qs 7 (4)  
Qs 8 (3)   Qs 9 (1)  Qs 10 (5)

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