Banking Quiz

1. Liquid assets means? 

A.Cash only 

B.Cash and Debtors 

C.Cash and Debtors (except bad debts) 

D.Cash and Debtors (except bad debts) and Marketable Securities

2. Which of the following is the most important contributing factor affecting the profitability of banks? 

A.Deteriorating productivity 

B.Heavy establishment expenses 

C.Huge "dead credit" in sick industries and the mounting losses on rural branches

D.Heavy losses on investment portfolio 

3. For the developing countries of Asia, the international agency which provides soft loans is? 

A.International Monetary Fund 

B.Asian Development Bank

C.International Development Association 

D.World Bank 

4. No licence from RBI is required for? 

A.opening a new bank branch in India 

B.opening a new bank branch outside India 

C.shifting an existing branch outside the city, village or town 

D.shifting an existing branch within the same city, village or town

5. Commercial banks are unique among financial institutions in that they? 

A.advance loans to business 

B.provide insurance to depositors 

C.create demand deposits 

D.All of the above

6. Financial year in banks is a period from? 

A.January to December 

B.May to June 

C.April to March

D.January to April

7. "Pure Banking Nothing Else" is a slogan raised by? 

A.ICICI Bank 

B.HDFC Bank 

C.SBI

D.UTI Bank 

8. 'Smart Money' is a term used for? 

A.Internal banking 

B.Credit card

C.Cash with bank 

D.Cash with public 

9. Pledge means? 

A.advance against goods 

B.open working capital limits 

C.bailment of goods as security for payment of a debt or performance of a promise

D.none of the above 

10. What are the RBI guidelines for the development of Interest Rate Swaps (IRS)? 

A.Banks can use IRS for hedging and Trading both 

B.MIFOR is a benchmark for IRS

C.Under ISDA agreement Banks can opt for dual jurisdiction i.e., Indian as well as common law

D.All of the above