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Banking Awareness Quiz

1. A Pledge means
(a) advanced against goods
(b) hypothecation of goods
(c) bailment of goods as security for payment of a debt or performance of a promise
(d) Open limits
(e) none

2. A cheque crossed as ‘Payees a/c only” is direction to
(a) the payee not to negotiate the cheque
(b) the paying banker to ensure that the proceeds of the cheque are credited to the payees a/c only
(c) the collecting banker to ensure that the proceeds of the cheques are collected for the account of the payee only
(d) none of the above
(e) all of the above

3. Truncation of cheques means
A. scanning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle
B. debiting of drawer’s account through internet
(a) Only A
(b) Only B
(c) Both A and B
(d) none of the above
(e) Either A or B

4. Cheques are truncated for the purpose of
(a) ensuring faster clearing of the instruments 
(b) avoiding the physical movement of the paper instruments and instead transmitting their electronic image
(c) reduction in processing cost
(d) all of the above
(e) none

5. Home loans are granted
(a) for construction of residential houses
(b) for repairing of existing residential houses
(c) for renovation of residential houses
(d) for purchase of constructed houses
(e) all of the above

6. Which of the following does not come in the purview of Retail banking?
(a) Advances to traders
(b) Advances to small scale units
(c) Financing of weaker sections of the society
(d) Loan syndicate
(e) none

7. Whole sale Banking refers to the borrowing and lending funds of
(a) Government department or agencies
(b) Other banks
(c) Big industrial houses
(d) Large domestic and international companies
(e) All of the above

8. In house loans. The prime security for the loan is generally
(a) house property for which loan is granted
(b) Personal guarantee of the borrower
(c) other property of the borrower
(d) Personal guarantee of third party
(e) None

9. The quantum of the loan under home loan is decided on the basis of
(a) Income to the borrower
(b) Cost of the property/cost of construction
(c) Repaying capacity of the person
(d) All
(e) None

10. The banks are required to constitute high power liability management committees comprising top executives to determine suitable policies for
(a) each liability product such as demand deposits, savings, term deposits and CODs
(b) liabilities denominated in foreign exchange
(c) monitoring ratio yield elastic and inelastic liabilities in the total liabilities as also supply statement of use of call money borrowings
(d) All
(e) None

Answers:


1. c
2. c
3. a
4. d
5. c
6. d
7. e
8. a
9. d
10. d