Banking Awareness Quiz for Bank Exam: 18-June-2020

The Banking Awareness section constitutes a major part of a competitive examination and needs your undivided attention. With the increased competition in the field of Banking examinations, it has now become very important to cover up all the sections efficiently. One subject that can help you bagging graceful marks in the minimum time in these examinations is Banking Awareness. Banking Awareness Quiz not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking or Insurance Recruitment.

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 18th June 2020 covering the following topics: Commercial papers, PPP, RTGS, CRR, MSF.

Q1. __________________ is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers.
(a) Bank Rate
(b) CRR
(c) Repo Rate
(d) PLR
(e) Reverse Repo Rate

Q2. PPP is a theory that measures prices at different locations using a common basket of goods. What is the full form of PPP?
(a) Personal Private Power
(b) Primary Power Parity
(c) Personal Private Parity
(d) Purchasing Power Parity
(e) Permanent Public Private

Q3. What is the Minimum amount of transfer required for RTGS is _____.
(a) Rs. 1 lakh
(b) Rs. 2 lakh
(c) Rs. 5 lakh
(d) Rs. 50,000
(e) No Limits

Q4. Who is the sole authority to issue and manage currency in India?
(a) State Bank of India
(b) Government of India
(c) Reserve Bank of India
(d) Finance Ministry
(e) None of the given options is true

Q5. In CRR, C stands for_______.
(a) Cash
(b) Company
(c) Core
(d) Currency
(e) Common

Solutions

S1. Ans.(a)
Sol. Bank Rate is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate is published under Section 49 of the Reserve Bank of India Act, 1934. This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes.

S2. Ans.(d)
Sol. Purchasing Power Parity (PPP) is a theory that measures prices at different locations using a common basket of goods. While PPP can be used to measure between two places using the same currency, its most common usage is between two locations that use different currencies.

S3. Ans.(b)
Sol. Minimum amount of transfer required for RTGS is Rs. 2 lakh. There is no upper limit, though. The beneficiary bank has to credit the beneficiary’s account within two hours of receiving the funds transfer message. RTGS transaction timings for Monday – Friday is 9 A.M to 4.30 P.M and for Saturday it is 9 A.M to 2 P.M.

S4. Ans.(c)
Sol. The Reserve Bank has the sole right to issue currency notes, except one rupee notes which are issued by the Ministry of Finance. ADVERTISEMENTS: The RBI follows a minimum reserve system in the note issue.

S5. Ans.(a)
Sol. Cash Reserve Ratio (CRR) is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the latter in the form of liquid cash.

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