Banking Quiz for Canara Bank and Syndicate Bank PO Exam 2018

Dear Aspirants,

Banking Quiz for Canara Bank and Syndicate Bank PO Exam 2018


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 not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking Recruitment.

Q1. An account for which a bank acts as an uninterested third party is termed as?
(a) Savings Account
(b) Current Account
(c) Reserve Account
(d) Escrow Account
(e) Fixed Account

S1. Ans.(d)
Sol. An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. Definition: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

Q2. A signed undertaking from one party containing a promise to pay a stated sum to a specified person or a company is known as ________
(a) Power of Attorney
(b) Promissory Note
(c) Purchasing Power Parity
(d) Plastic Notes
(e) None of the given options is true

S2. Ans.(b)
Sol. A promissory note is a legal instrument in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee).

Q3. Which of the following is defined as the difference between current assets and current liabilities?
(a) Venture Capital
(b) Working Capital
(c) Equitable Mortgage
(d) Loss Assets
(e) Profit and Loss Account

S3. Ans.(b)
Sol. The capital of a business (working capital) which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

Q4. A debt which is irrecoverable and is therefore written off as loss in the accounts of an institution or bank is known as __________
(a) external debt
(b) good debt
(c) bad debt
(d) internal debt
(e) None of the given options is true

S4. Ans.(c)
Sol. The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.

Q5. Many a time we read in the newspapers that RBI has changed or revised a particular ratio/rate by a few basis points. What is basis point? 
(a) Ten percent of one-hundredth point 
(b) One hundredth of 1%
(c) One hundredth of 10% 
(d) Ten per cent of 1000
(e) None of the given options is true

S5. Ans.(b)
Sol. A basis point is the smallest measure used in quoting yields on fixed income products. Basis points also pertain to interest rates. One basis point is equal to one one-hundredth of one percentage point (0.01%). Therefore, 100 basis points would be equivalent to 1%.

Q6. Part of company’s earning or profit which is paid out to share holders is known as _______
(a) Premium
(b) Dividend
(c) Bonus
(d) Sum Assured
(e) Return

S6. Ans.(b)
Sol. A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest it in the business (called retained earnings) and pay a fraction of the profit as a dividend to shareholders.

Q7. Which of the following economic concepts is categorised on the basis of Current Account or Capital Account or both?
(a) Balance of Payments
(b) Value of the food grain stock of a country
(c) Gross National Product
(d) Gross National Income(GNI)
(e) Total collection of Direct Taxes in a year

S7. Ans.(a)
Sol. A Balance of payments statements is a summary of a nation’s total economic transactions undertaken on international account. It is usually composed of two sections:-
1. Current Account
2. Capital Account

Q8. When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called-
(a) Revenue Deficit
(b) Budgetary Deficit
(c) Zero Budgeting
(d) Trade Gap
(e) Balance of Payment Problem

S8. Ans.(b)
Sol. Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.

Q9. Sukanya Samriddhi Account can be opened up to age of ________ years only from the date of birth.
(a) Five years
(b) Four years
(c) Six years
(d) Eight years
(e) Ten years

S9. Ans.(e)
Sol. Sukanya Samriddhi Account can be opened up to age of 10 years only from the date of birth.

Q10. Private sector lender Axis Bank reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to-
(a) Rs 1 lakh 
(b) Rs 80 lakh 
(c) Rs 20 lakh 
(d) Rs 50 lakh
(e) Rs 10 lakh

S10. Ans.(d)
Sol. Private sector lender Axis Bank reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh. However, the bank will continue to pay 4 per cent interest on deposits of above Rs 50 lakh.

Q11. NSDP links are intended to provide quick access to a single comprehensive source of economic and financial data consistent with the data categories and components described in the subscriber's metadata. NSDP stands for-
(a) National Summary District Page
(b) National Summary Development Page
(c) National Summary Department Page
(d) National Summary Division Page
(e) National Summary Data Page

S11. Ans.(e)
Sol. The National Summary Data Page (NSDP) links are intended to provide quick access to a single comprehensive source of economic and financial data consistent with the data categories and components described in the subscriber's metadata. Additionally, many of the NSDPs include further links to additional data or information on other national Internet data sites.

Q12. An Asset Reconstruction Company (ARC) in India is associated with-
(a) UCPDC
(b) DICGC
(c) NPA
(d) Home Loan
(e) None of the given options is true

S12. Ans.(c)
Sol. Asset Reconstruction Company (ARC) also known as Securitization company in India helps to unlock the value of non-performing assets (NPA) in banks through Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.ARC is regulated by RBI as a Non Banking Financial Company (NBFC).

Q13. Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis?
(a) Commercial Paper
(b) Certificate of Deposit
(c) Collateralized Borrowing and Lending Obligations (CBLO)
(d) Call Money
(e) None of the given options is true

S13. Ans.(d)
Sol. Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

Q14. Which of the following is not available to depositors of NBFCs?
(a) Deposit Insurance facility
(b) Acquisition of shares
(c) Loans and Advances
(d) All of the Above
(e) None of the given options is true

S14. Ans.(a)
Sol. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

Q15. India Infrastructure Finance Company Ltd (IIFCL) is a wholly-owned ____________ company set up in 2006.
(a) NABARD
(b) SEBI
(c) RBI
(d) Finance Ministry
(e) Government of India

S15. Ans.(e)
Sol. IIFCL is a wholly-owned Government of India company set up in 2006 to provide long-term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.


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