Banking Awareness Quiz – 2

This Banking Awareness Quiz consists of 10 Questions on topics like Banking, Financial Markets, Banking and Financial Regulators etc.

Q1.FEMA Stands for ______________

  1. Financial Exchange Management Act
  2. Foreign Exchange Management Act
  3. Foreign Exchange Money Act
  4. Financial Exchange Money Act
  5. Foreign External Management Act

View Answer / Explanation

Foreign Exchange Management Act

Q2.Primary Activities of RBI are _____________

  1. Managing Foreign Exchanges
  2. Issuing Currency Notes
  3. Maintaining Financial Stability
  4. Regulating Banking System in India
  5. All The Above

View Answer / Explanation

Option 5 – RBI manages all the above mentioned activities.

Q3.Maintaining cash balance with RBI as a share of demand and time liabilities of bank is known as

  1. CRR
  2. SLR
  3. LAF
  4. MSF
  5. Bank Rate

View Answer / Explanation

Option 1- CRR – Cash Reserve Ratio.

Q4.Identify RBI Regulatory role from the following

  1. Licensing
  2. Monitoring Governance
  3. Regulating Interest Rates
  4. Prescribing Capital Requirements
  5. All the above

View Answer / Explanation

All the above

Q5.What are the principles that guide RBI in investing its foreign assets

  1. Safety and Liquidity
  2. Safety and Returns
  3. Liquidity and Returns
  4. Safety, Liquidity and Returns
  5. None of the above

View Answer / Explanation

Safety, Liquidity and Returns

Q6.Larger value settlement of inter-bank transactions from financial markets is done through ____________________

  1. RTGS
  2. IPS
  3. RuPay
  4. NEFT
  5. RBI Payment System

View Answer / Explanation

RTGS – Real Time Gross Settlement

Q7.National Bank for Agriculture and Rural Development ( NABARD ) is established for ______________________

  1. Promoting Mutual Funds in India
  2. Promoting and Regulating Housing Finance in Rural Areas
  3. Promoting Rural and Agricultural Credit
  4. Regulating Agriculture in Rural Areas
  5. Regulating Agriculture in Rural and Semi-Urban Areas

View Answer / Explanation

NABARD is established for Promoting Rural and Agricultural Credit

Q8.Cash Reserve consists of ____________

  1. Cash
  2. Money Market Instruments
  3. Treasury Bill
  4. Option 1 and 3
  5. All the above

View Answer / Explanation

Cash Reserve consists of Cash, Money Market Instruments and Treasury Bills

Q9.Main instrument(s) available with the Central Banks to control prime rates of leading banks is _____________

  1. Repo Rate
  2. Reverse Repo Rate
  3. CRR
  4. SLR
  5. All the above

View Answer / Explanation

Central Banks uses All the above instruments to control the prime lending rates of banks.

Q10.Acceptance of deposits from public for the purpose of lending and investments is the main activity of _____________

  1. Commercial Banks
  2. Financial Institutions
  3. Primary Dealers
  4. NBFC
  5. MFI

View Answer / Explanation

Commercial Banks

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