Banking Awareness quiz : set 01

Q.1) CAMELS is a supervisory rating system originally developed in the U.S. to classify a bank’s overall condition type of Bank Rating System. In CAMELS, what does ‘C’ stand for?

a) Currency

b) Compensation

c) Capital Adequacy

d) Capitalization

e) Composite

Q.2) Consumer Protection Act was introduced to enforce consumer rights through a simple legal procedure. It is started in which year?

a) 1989

b) 1976

c) 1986

d) 1897

e)1996

Q.3) Which of the following statements are correct regarding Basic Savings Bank Deposit Account (BSBDA)

a) Its meant for low income households

b) Earlier it was known as No frills A/c

c) Maximum of four withdrawals in a month

d) The account is considered as normal banking service

e) All of the above

Q.4) Who is the founder of Microfinance institutions?

a) Kalyana Sundaram

b) Sivaraman

c) Muhammed Yunus

d) Yezdi Hirji Malegam

e) Abid Hussain

Q.5) Foreign Currency which has a tendency of quick migration is called

a) Fiat Currency

b) Soft Currency

c) Token Currency

d) Hot Currency

e) None of the above

Q.6) An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. It is useful /helpful to ______.

a) Importers

b) Exporters

c) People

d) Assets

e) Other than the given options

Q.7) PCA is a US federal law mandating progressive penalties against banks that exhibit progressively deteriorating capital ratios. Expand the term PCA.

a) Promotion Corrective Action

b) Paper Corrective Action

c) Prompt Corrective Action

d) Proper Corrective Action

e) Prompt Correctional Action

Q.8) Current account becomes inactive when there is no withdrawal from the last credit of entry after how many months?

a) 3 months

b) 6 months

c) 24 months

d) 12 months

e) 9 months

Q.9) Which among the following is true about ‘Open Market Operation’?

a) Refer to the buying and selling of government securities in the open market in order to expand or contract the  amount of money in the banking system, facilitated by the Federal Reserve.

b) Purchases inject money into the banking system and stimulate growth, while sales of securities do the opposite and contract the economy.

c) It is the most flexible and most common tool that the Fed uses to implement and control monetary policy.

d) Both a & c

e) All a, b & c

Q.10) _____ loan is granted on the basis of immovable property as security.

a) Mortgage

b) Assignment

c) Pledge

d) Hypothecation

e) Lien

ANSWER

1) c) Capital Adequacy6) a) Importers
2) c) 19867) c) Prompt Corrective Action
3) e) All of the above8) d) 12 months
4) c) Muhammed Yunus9) e) All a, b & c
5) d) Hot Currency10) a) Mortgage

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