Banking Quiz for SBI Clerk Exam 2018 | 8th March 2018

Dear Aspirants,

Banking Quiz

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

Q1. The FRDI Bill is part of a larger, more comprehensive approach by the Centre towards systematic resolution of all financial firms. FRDI stands for- 
(a) Financial Resolution and Deposit India
(b) Financial Resolution and Deposit International
(c) Financial Resolution and Deposit Initial
(d) Financial Resolution and Deposit Increase
(e) Financial Resolution and Deposit Insurance

S1. Ans.(e)
Sol. The FRDI Bill is part of a larger, more comprehensive approach by the Centre towards systematic resolution of all financial firms — banks, insurance companies and other financial intermediaries. The Bill comes together with the Insolvency and Bankruptcy Code to spell out the procedure for the winding up or revival of an ailing company. FRDI stands for Financial Resolution and Deposit Insurance.

Q2. LEI is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction. What is the meaning of "I" in LEI?
(a) Insurer
(b) Indian
(c) Identifier
(d) Increase
(e) International

S2. Ans.(c)
Sol. The Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction.

Q3. LEI India Limited is Wholly Owned Subsidiary of-
(a) Clearing Corporation of India Limited
(b) Bharatiya Reserve Bank Note Mudran Private Limited 
(c) Small Industries Development Bank of India
(d) Securities and Exchange Board of India
(e) Reserve Bank of India

S3. Ans.(a)
Sol. Legal Entity Identifier India Limited (CIN- U74900MH2015PLC268921)– A Wholly Owned Subsidiary of The Clearing Corporation of India Ltd. acts as a Local Operating Unit (LOU) for issuing globally compatible Legal Entity Identifiers (LEIs) in India.

Q4. AEPS is a system that leverages Aadhaar online authentication and enables AEBAs to be operated in anytime-anywhere banking mode by the marginalized d financially excluded segments of society through micro ATMs. What is the meaning of "E" in AEPS?
(a) Equity
(b) Essential
(c) Electronic
(d) Enabled
(e) Enrolled

S4. Ans.(d)
Sol. Aadhaar Enabled Payment System (AEPS) – A system that leverages Aadhaar online authentication and enables AEBAs to be operated in anytime-anywhere banking mode by the marginalized d financially excluded segments of society through micro ATMs.

Q5. APB is a repository of Aadhaar number of residents and their primary bank account number used for receiving all social security and entitlement payments from various government agencies. What is the meaning of "B" in APB?
(a) Base
(b) Bridge
(c) Bond
(d) Banking
(e) Basel

S5. Ans.(b)
Sol. Aadhaar Payments Bridge or APB is a repository of Aadhaar number of residents and their primary bank account number used for receiving all social security and entitlement payments from various government agencies. It requires using Aadhaar number as the primary key for all entitlement payments. This would weed out all fakes and ghosts from the system and ensure that the benefits reach the intended beneficiaries.

Q6. NCLT is a quasi-judicial body in India that adjudicates issues relating to companies in India. NCLT stands for-
(a) National Common Law Tribunal
(b) National Company Law Trend
(c) National Company Law Tribunal
(d) National Company Law Transaction
(e) National Company Law Treaty

S6. Ans.(c)
Sol. The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues relating to companies in India.

Q7. CERSAI is a central online security interest registry of India. What is the meaning of "A" in CERSAI? 
(a) Asset
(b) Agency
(c) Association
(d) Aboard
(e) Annually

S7. Ans.(a)
Sol. Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) is a central online security interest registry of India. It was primarily created to check frauds in lending against equitable mortgages, in which people would take multiple loans on the same asset from different banks.

Q8. MIBOR is one iteration of an interbank rate, which is the rate of interest charged by a bank on a short-term loan to another bank. What is the full form of MIBOR?
(a) Management Inter-Bank Offer Reconstruction
(b) Mumbai Inter-Bank Offer Random
(c) Mumbai Inter-Bank Offer Reconstruction
(d) Mumbai Inter-Bank Offer Ratio
(e) Mumbai Inter-Bank Offer Rate

S8. Ans.(e)
Sol. The Mumbai Inter-Bank Offer Rate (MIBOR) is one iteration of an interbank rate, which is the rate of interest charged by a bank on a short-term loan to another bank.

Q9. EFTPOS is a technology that makes it possible for retailers to directly receive funds from a customer's bank account via their debit card. What is the meaning of "T" in EFTPOS?
(a) Trusty
(b) Transfer
(c) Technology
(d) Treaty
(e) Timing

S9. Ans.(b)
Sol. EFTPOS (Electronic Funds Transfer at Point Of Sale) is a technology that makes it possible for retailers to directly receive funds from a customer's bank account via their debit card.

Q10. YONO app is a digital banking app launched by the State Bank of India. YONO stands for-
(a) You Only Name One
(b) You Only Need original
(c) You Only Need Oriented
(d) You Only Need One
(e) You Only National One

S10. Ans.(d)
Sol. YONO or You Only Need One, is a digital banking app launched by the State Bank of India (SBI). YONO aims to be a one-stop solution for banking, lifestyle, insurance, investment, and shopping needs.

Q11. CBLO is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of a loan. What is the meaning of "B" in CBLO?
(a) Borrowing
(b) Balance
(c) Banking
(d) Basel
(e) Bond

S11. Ans.(a)
Sol. A collateralized borrowing and lending obligation (CBLO) is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of a loan.

Q12. MDR is a fee charged from a merchant by a bank for accepting payments from customers through credit and debit cards in their establishments. MDR stands for-
(a) Merchant Discount Ratio
(b) Merchant Discount Rate
(c) Merchant Discount Rating
(d) Merchant Development Rate
(e) Money Discount Rate

S12. Ans.(b)
Sol. MDR or Merchant Discount Rate is a fee charged from a merchant by a bank for accepting payments from customers through credit and debit cards in their establishments.

Q13. CRR is the number of funds that the banks have to keep with the RBI. What is the full form of CRR?
(a) Cash Rate Ratio 
(b) Cash Reserve Rate 
(c) Cash Reserve Ratio 
(d) Common Reserve Ratio 
(e) Core Reserve Ratio

S13. Ans.(c)
Sol. Cash Reserve Ratio (CRR) is the number of funds that the banks have to keep with the RBI.

Q14. MSF rate refers to the rate at which the scheduled banks can borrow funds overnight from RBI against government securities. What is the meaning of "F" in MSF?
(a) Funded
(b) Financial
(c) Flow 
(d) Facility
(e) Fund

S14. Ans.(d)
Sol. Marginal Standing Facility (MSF) rate refers to the rate at which the scheduled banks can borrow funds overnight from RBI against government securities.

Q15. ETFs are mutual funds listed and traded on stock exchanges like shares. ETFs stands for-
(a) Electronic Traded Funds
(b) Exchange Time Funds
(c) Exchange Traded Finance
(d) Exchange Traded Flows
(e) Exchange Traded Funds

S15. Ans.(e)
Sol. Exchange Traded Funds (ETFs) are mutual funds listed and traded on stock exchanges like shares.