Banking Awareness Quiz

1. Which of the following is the disadvantage of going for public issue?
(a) Better pricing and placement with new investors
(b) Need to make continuous disclosures
(c) Increase in visibility and reputation to the company
(d) Liquidity to existing shares
(e) None of these

2. Which of the following is not an asset of a bank?
(a) Notes and Small coins
(b) Short Term Loans
(c) Staff Advances
(d) Overdue Recurring Deposits
(e) None of these

3. The Base rate is set by which of the following organizations/ institution?
(a) Individual Bank
(b) Government of India
(c) Reserve Bank of India
(d) RBI in constitution with Government
(e) State Bank of India

4. Which of the following is not a criterion to select the Investment Banking?
(a) Good rapport with market intermediaries
(b) General reputation in the market
(c) Distribution net work of the organization
(d) No professional memberships or incorporation
(e) None of these

5. The banking company has restriction to sanction loan to
(a) Staff working in the bank
(b) Directors of the bank
(c) Students going abroad
(d) Professionals
(e) None of these

6. Which of the following business is prohibited as per Section 8 of Banking Regulations Act 1949?
(a) Retail Trading
(b) Executing the trust
(c) Leasing
(d) Underwriting
(e) None of these

7. Which of the following is a non-depository institution?
(a) Regional Rural Bank
(b) Mutual Funds
(c) Credits Unions
(d) Commercial Banks
(e) None of these

8. State Bank of India's new floating rate of deposit is a directly linked to?
(a) Base Rate
(b) BPLR
(c) Bank Rate
(d) Inflation Rate
(e) CRR

9. Issuing of credit cards is a component of
(a) Corporate Banking
(b) Micro Finance
(c) Retail Banking
(d) Rural Banking
(e) None of these

10. The credit policy of a bank does not deal with?
(a) Documentation Standard
(b) Outstanding Balance in deposit account
(c) Credit risk management
(d) Review and renewal of advances
(e) None of these

ANSWERS:
1. b
2. d
3. a
4. d
5. b
6. a
7. b
8. a
9. c
10. b