Basic Banking Awareness 100 MCQs

by Mr. DJ

If you ally craving such a referred banking awareness mcq book that will have the … Basic/Banking awareness is a part 100 random MCQs
11.What is the full form of MDER?

[A] Market Determined Exchange Rate
[B] Market Derivative Exchange Rate
[C] Market Determined Exchange Regime
[D] Managed Determined Exchange Rate


Correct Answer: A [Market Determined Exchange Rate]

After 1999 the official rate was discontinued and exchange rate became market-determined exchange rate (MDER). Under MDER the forces of demand and supply of dollars in India determine the exchange rate.

12.Where does the headquarters of CRISIL situated?

[A] Mumbai
[B] Delhi
[C] Haryana
[D] Kolkata


Correct Answer: A [Mumbai]

CRISIL stands for Credit Rating Information Services of India Ltd. It is headquartered in Mumbai and is a subsidiary of Standard and Poor’s.

13.Which score is considered as the maximum credit score in India?

[A] 345
[B] 750
[C] 900
[D] 700


Correct Answer: C [900]

The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good credit score.

14.Venture capital was originated in which of the following countries?

[A] India
[B] Britain
[C] France


Correct Answer: D [USA]

The public successes of the venture capital industry in the 1970s and early 1980s gave rise to a major proliferation of venture capital investment firms. Venture Capital Fund of America, the first private equity firm focused on acquiring secondary market interests started its operation in 1982.

15.Which of the following are the ways to repay the personal loan?

[A] Equated Monthly Installments via Cheques
[B] Electronic Clearing Services
[C] Cash
[D] Both a and b


Correct Answer: D [Both a and b]

The loan can be repaid in the form of Equated Monthly Installment (EMI) via post-dated cheques drawn in favour of the bank or by releasing a mandate allowing payment through the Electronic Clearing Services (ECS) system.

16.Which of the following best define an open-funded mutual fund?

[A] It has an option to invest in any kind of security.
[B] It has units available for sale and repurchase at all times.
[C] It does not have a NAV.
[D] It has fixed fund size.


Correct Answer: B [It has units available for sale and repurchase at all times.]

Open-end fund is a fund that can issue and redeem shares at any time. An investor purchase shares in this fund directly from the fund itself, rather than from the existing shareholders.

17.What is the full form of ELSS?

[A] Equity Linked Saving Scheme
[B] Equity Linking Saving System
[C] Equitable Linked Saving System
[D] None of the above


Correct Answer: A [Equity Linked Saving Scheme]

An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that help to save tax. It also gives an opportunity to grow money. It qualifies for tax exemptions under section 80C of the Indian Income Tax Act.

18.Which of the following include the primary structure of the Mutual Funds?

[A] Open-end funds
[B] Unit Investment Trusts
[C] Exchange traded Funds
[D] All of the Above


Correct Answer: D [All of the Above]

Primary structures of mutual funds include open-end funds, unit investment trusts, and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an exchange.

19.How many NBFC factors are there in India registered at present?

[A] 31
[B] 6
[C] 7
[D] 9


Correct Answer: C [7]

SBI Factors and Commercials Limited was the first factoring company to start its operation in India in April, 1991. Since then a number of companies have started factoring business in India. At present, there are only 7 NBFC factors registered with RBI.

20.Corporate loans are offered to applicants who have established their business for how many years in India?

[A] 5
[B] 6
[C] 2
[D] 7


Correct Answer: A [5]

Corporate loans are offered to applicants who have their business established for at least 5 years and in the last 2 years has made profit and has a strong credit rating and has a proven track of successful business. If the business had taken loans previously, then the repayment status is looked into while sanctioning the loan.

Also Read :-Scheduled banks Vs Non -Scheduled banks 

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