GK FOR BANKING EXAM - QUIZ - 3

BANKING GK QUIZ - 3

1. The RBI regulates the commercial banks in matters of

(1). Liquidity of assets

(2). Branch expansion

(3). Merger of banks

(4). Winding- up of banks

Select the correct answer using the codes given below.

[A] 1 and 4 only                      [B] 2, 3 and 4 only

[C] 1, 2, and 3 only                 [D] 1, 2, 3, and 4 only

2. An increase in the Bank rate generally indicates that

[A] Market rate of interest is likely to fall

[B] Central Bank is no longer making loans to commercial banks

[C] Central Bank is following a tight money policy

[D] Central Bank is following an easy money policy

3. In India, deficit financing is used for raising resources for

[A] Economic development

[B] Redemption of public debt

[C] Adjusting the balance of payments

[D] Reducing the foreign debt

4. What is meant by financial inclusion?

[A] Making available banking services at an affordable cost

[B] Operating Savings Account in rural areas without any deposit.

[C] Opening any type of account without introduction.

[D] Distributing money through rural branches.

[E] Distributing wages through bank account.

5. What is money laundering?

[A] Conversion of assets into cash.

[B] Conversion of illegally obtained money into accountable money.

[C] Conversion of gold into cash

[D] None of these

6. The Head Office of Bank of Maharashtra is located in which of the following cities?

[A] Kolkata                 [B] New Delhi

[C] Mumbai                 [D] Pune

7. What is the full form of the term ASBA

[A] Allotment Supported by Blocked Amount

[B] Application Supported by Bank Amount

[C] Allotment Supported by  Bank Account

[D] Application Supported by Blocked Amount

[E] Allotment and Social Banking Amount 

8. The term “Deficit Financing” means the Government borrows from the

[A] IMF                      [B] Local bodies

[C] RBI                       [D] Large corporate

[E] Public at large

9. Which of the following term is not used in the field of Economics?

[A] Balance of Trade

[B] Break Even Point

[C] Plasma

[D] Capital Account Convertibility

[E] Fiscal Deficit

10. Regional Rural Banks are

[A] Have limited area of operation and access to refinance from NABARD

[B] Are required to lend only to weaker section.

[C] Are mandated to do only narrow banking.

[D] Can only extend agricultural loans

[E] Have unrestricted area of operation. 

              ANSWER

1	D	6	D
2	C	7	D
3	A	8	C
4	B	9	C
5	B	10	A