Banking & Financial Awareness Quiz for SBI & Banking

1. A major Public Sector Bank raised interest rates on loans by 25 basis points – was news in some major financial newspapers recently. This means the bank has raised interest by 25 basis points of

1) Savings Bank Interest Rate

2) Base Lending Rate

3) Repo Rates

4) Present Rates on Deposits

5) Discounted Rates of Interest

2. Immediately prior to change in the measure of Food Inflation, which of the following indexes was being used for measuring it?

1) Wholesale Price Index

2) Consumer Price Index

3) Interest Rates offered by banks on deposits

4) Sensex and Nifty

5) None of these

3. What is the full form of ‘FINO’, a term we see frequently in financial newspapers?

1) Financial Investment Network and Operations

2) Farmers’ Investment in National Organisation

3) Farmers Inclusion News and Operations

4) Financial Inclusion Network and Operations

5) None of these

4. What does the letter ‘L’ denote in the term ‘LAF’ as referred every now and then in relation to monetary policy of the RBI?

1) Liquidity

2) Liability

3) Leveraged

4) Longitudinal

5) Linear

5. Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short-term securities as a reserve all the time. In Banking World this is known as

1) CRR

2) Fixed Asset

3) SLR

4) PLR

5) None of these

6. What is the full form of ‘NBFC’ as used in the Financial Sector?

1) New Banking Finance Company

2) National Banking & Finance Corporation

3) New Business Finance & Credit

4) Non Business Fund Company

5) None of these

7. Many a time we read about Special Drawing Right (SDR) in newspapers. As per its definition, SDR is a monetary unit of the reserve assets of which of the following organisations/agencies?

1) World Bank

2) International Monetary Fund (IMF)

3) Asian Development Bank

4) Reserve Bank of India

5) None of these

8. As per the news published in various newspapers, the RBI is considering the grant of licence to some new companies, particularly NBFCs, to act as full-fledged banks. Which of the following will be considered an NBFC?

1) NABARD

2) Life Insurance Corporation of India

3) Reliance Capital

4) SEBI

5) None of these

9. CRM (Customer Relationship Management) is

1) A pre-sales activity

2) A tool for lead generation

3) An ongoing daily activity

4) The task of a DSA

5) All of the above

10. Bancassurance can be sold to

1) All banks

2) All insurance companies

3) Insurance Agents

4) All existing and prospective bank customers

5) All of the above

11. Cross-selling is not effective for which one of the following products?

1) Debit cards

2) Savings accounts

3) Internet banking

4) Pension loans

5) Personal loans

Answers:

1. 2
2. 2
3. 5
4. 1
5. 1
6. 5
7. 2
8. 3
9. 5
10. 4
11. 2