Banking Awareness

1.What is Gilts:
A.Securities issued by government or Treasuries
B.They do not have any credit Risk
C.A and B both
D.None of the above
1.C

2.For which of the following purpose can banks grant Working Capital Term Loan:
A.Meeting margin for term loan
B.Meeting margin for working capital loan
C.Meeting contingent expenses
D.Meeting credit needs for peak season in an industry
2.C

3.Know Your Customers (KYC) guidelines are as per the provisions of:
A.Section 35 of Negotiable Instruments Act, 1881
B.Section 35A of Banking Regulation Act, 1949
C.Section 35A of RBI Act, 1934
D.IBA guidelines
3.B

4.Maximum period for which a commercial paper can be issued is:
A.3 months
B.6 months
C.1 year
D.2 years
4.C

5.One of the following is not correct in regard to Capital Market:
A.It is a market for long term financial assets
B.Maturity Period less than one year
C.Dealings take place at Stock Exchange
D.Unlimited number of players
E.Regulated by SEBI
5.B

6.The approaches suggested by Basel Committee for purpose of computing Credit Risk under Basel-II are:
A.Advance Standard Approach, Internal Rating-Based Foundation Approach and Internal Risk-Based Advance Approach B. Standard Approach, Internal Rating-Based Foundation Approach, and Internal Rating-Based Advance Approach
C.Basic Indicator Approach, Internal Rating-Based Foundation Approach, and Internal Risk-Based Advance Approach
D.Standard Approach, Internal Rating-Based Foundation Approach and Internal Risk-Based Advance Approach
6.B

7.The duration of Ways & Means Advances (WMAs) is:
A.10 working days for Central Government 14 days for State Government
B.10 consecutive working days for Central Government and 14 days for State Government
C.14 working days for Central Government and 18 days for State Government
D.14 consecutive working days for Central Government and 18 days for State Government
7.B

8.What are the characteristics of Treasury Bills:
A.These are borrowings by the Central/State Government
B.These are in the form of Promissory Notes
C.These are issued at a discount and for a fixed period of time
D.All of the above
8.D

9.Credit Guarantee Fund Trust for Small Industries has been set up on the recommendations of:
A.Narasimham Committee
B.Ghosh Committee
C.Chore Committee
D.Kapoor Committee
9.D

10.What is full form of SLR in banking term:
A.Statutory liquidity rate
B.Statutory liquidity ratio
C.Statutory liquid rate
D.Stagnent liquidity ratio
10.B