In context of banking, what does ‘BBB’ stands for__? [A]Bank Broadcast Bureau [B]Bank Beneficial Bureau [C]Bank Blogger Bureau [D]Bank Board Bureau Show Answer Bank Board Bureau The Union Government has decided to set up Bank Board Bureau (BBB) for Public Sector Banks (PSBs), where each bank would be monitored on the basis of key performance […]
A syndicated loan is a form of lending in which__: [A]a group of lenders collectively extend a loan to a single borrower [B]a lender extend a loan to group of borrowers [C]a loan made by a single lender to a single borrower [D]a group of lenders collectively extend a loan to group of borrowers Show […]
In which year, Foreign Currency Non-Resident Account Bank or FCNR (B) was first introduced? [A]1991 [B]1993 [C]1995 [D]1996 Show Answer 1993 Foreign Currency Non-Resident Account Bank or FCNR (B) was first introduced in 1993. While NRERA Account is a rupee account and the depositor is exposed to the Currency rates risk; FCNR is opened in […]
In which among the following accounts, no cheque book is issued? [A]Minor Account [B]Joint Account [C]Illiterate Account [D]Non Resident Account Show Answer Illiterate Account Illiterate accounts are opened on discretion of the banks if the person personally goes to the bank along with a witness already known to the bank and the depositor. No cheque […]
“No Risk, No reward”. This quote is most closely associated with__? [A]Risk Diversification [B]Collateral Damage [C]Risk-return trade-off [D]None of the above Show Answer Risk-return trade-off The principle of Risk-return trade-off says that higher the potential return, higher is the risk. Low risk is associated with low potential returns, whereas high risk is associated with high […]
Which of the following is NOT a correct statement? [A]Interest rates on unsecured loans is higher than the secured loans [B]Mortgage Loan is a kind of secured loan [C]Credit Card is a kind of secured loan [D]Unsecured loans are given out on the basis of credit worthiness of the borrowers Show Answer Credit Card is […]
Which of the following is also known as Contingent Liability of the banks? [A]Cash Credits [B]Non-fund based lending [C]Fund Based lending [D]Cash Reserve Ratio Show Answer Non-fund based lending In Non-fund based lending, bank does not make any funds outlay but only gives assurance. The “letter of credit” and “bank guarantees” fall into the category […]
Which of the following is / are examples of Credit Creation by banks? [A]Advancing loans [B]Purchasing securities [C]Selling securities [D]Only A and B Show Answer Only A and B Credit is created by commercial banks in two ways- advancing loans and by purchasing securities.
NABARD administers a fund called Rural infrastructure Development Fund (RIDF). What is the major source of its funding?
NABARD administers a fund called Rural infrastructure Development Fund (RIDF). What is the major source of its funding? [A]Penalties levied on domestic commercial banks who fail to meet PSL targets [B]Penalties levied on foreign banks (with less than 20 branches) who fail to meet PSL targets [C]Penalties levied on Central Government who fail to meet […]
Who monitors Priority Sector Lending (PSL) in commercial banks? [A]Reserve Bank of India (RBI) [B]Small Industries Development Bank of India (SIDBI) [C]National Bank for Agriculture and Rural Development (NABARD) [D]Government of India (GOI) Show Answer Reserve Bank of India (RBI) The priority sector lending by commercial banks is monitored by Reserve Bank of India (RBI) […]