Banking Awareness Quiz for SBI CBO – Quiz 3

14/01/2022

Banking Awareness Quiz for SBI CBO

Banking Awareness Section plays an important part in SBI CBO exam. We’ve provided Banking Awareness Quiz for SBI CBO that is essential for SBI CBO examination. The Banking Awareness Quiz for SBI CBO is based on both static banking and current banking in the news. This Banking Awareness Quiz for SBI CBO can help you prepare for the upcoming SBI CO exam and others. So go ahead and attempt the Banking Awareness Quiz for SBI CBO, now.

Q1. As per Basel III, general provisions and loss reserves are included in Tier-2 capital maximum to the extent of:
(a) 0.6% of total risk credit weighted assets under standardized approach and 0.6% of total risk weighted assets under IRB approach
(b) 1.25% of total credit risk weighted assets under standardized approach and 0.6% of total credit risk weighted assets under IRB approach
(c) 0.6% of total credit risk weighted assets under standardized approach and 1.25% of total risk weighted assets under IRB approach
(d) 1.25% of total credit risk weighted assets under standardized approach and 1.25% of total risk weighted assets under IRB approach.
(e) 0.8% of total credit risk weighted assets under standardized approach and 1.25% of total risk weighted assets under IRB approach

Answer & Explanation

1.Ans(d)
General provisions: This category consists of losses that a bank may have of an as yet undetermined amount including from loans. The total general provision amount allowed is 1.25% of the bank’s risk-weighted assets (RWA)

Q2. How much is the agricultural credit target for fiscal 2020-21?
(a) Rs 15 lakh
(b) Rs 25 lakh
(c) Rs 10 lakh
(d) Rs 5 lakh
(e) None of these

Answer & Explanation

2.Ans (d)
The government has pegged the agricultural credit target for fiscal 2020-21 at Rs 15 lakh crore.

Q3. Who presented India’s first-ever Budget?
(a) James Wilson
(b) C Rajgopalachari
(c) Jawaharlal Nehru
(d) Lord Mountbatten
(e) None of these

Answer & Explanation

3.Ans (a)
James Wilson, the British economist presented the budget on February 18, 1860. He introduced three kinds of taxes- income tax, license tax and tobacco duty.

Q4. Which among the following is Cash budget based on?
(a) Sales forecast
(b) Expense budget
(c) Capital expenditure budget
(d) All of the above
(e) None of these

Answer & Explanation

4.Ans (d)
A cash budget refers to a company’s estimation of cash inflows and outflows over a specific period of time, that may be weekly, monthly, quarterly, or annually. It provides company with insight into its cash needs and any surpluses, which help it determine an efficient use of cash. The budget is based on the sales, expense and capital expenditure budget.

Q5. The time value of a call option before its expiry date is known as
(a) Strike Price +Spot Price
(b) Market Premium – Intrinsic Value
(c) Spot Price – Strike Price
(d) Spot price
(e) Intrinsic Value

Answer & Explanation

5.Ans (b)
Time value is calculated by taking the difference between the option’s premium and the intrinsic value, and this means that an option’s premium is the sum of the intrinsic value and time value: Time Value = Option Premium – Intrinsic Value. Option Premium = Intrinsic Value + Time Value.

Q6. In primary markets, the property of shares which made it easy to sell newly
issued security is considered as
(a) Increased liquidity
(b) decreased liquidity
(c) money flow
(d) large funds
(e) short term funds

Answer & Explanation

6.Ans (a)
In primary markets, property of shares which made it easy to sell newly issued security is considered as increased liquidity. Liquidity is the amount of money that is readily available for investment and spending.

Q7. The Securities and Exchange Board of India was not entrusted with the function of
(a) Investor protection
(b) Ensuring fair practices by companies
(c) Promotion of efficient services by brokers
(d) Improving the earning of equity holders
(e) None of the above

Answer & Explanation

7.Ans (d)
SEBI regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies. It prohibits insider trading, i.e. fraudulent and unfair trade practices related to the securities market.The SEBI Act of 1992 carries a list of such powers vested in the regulatory body. The functions of SEBI make it an issuer of securities, protector of investors and traders and a financial mediator.

Q8. After advancement in technology, Bank are considering to use Block chain technology in their field, Which of the below shall be its benefits?
(a) It would help to increase transparency
(b) It would help to transfer digital assets among market participants in real time
(c) It may take away privacy of customers
(d) Both a and b
(e) None of the above

Answer & Explanation

8.Ans (d)
Blockchain is an open source software that is built to support the transfer of digital assets amongst market participants in real time. Using any preferred blockchain’s APIs one can showcase a dramatic reduction in asset transfer costs and timelines, increase transparency and transaction immutability.

Q9. To handle the voluminous unstructured data of Banks, Banks are planning to use ___ technology in future?
(a) Robotic Process Automation
(b) SWIFT
(c) LIBOR
(d) Cloud Computing
(e) MIBOR

Answer & Explanation

9.Ans (a)
Robotic Process Automation technology shall be used by Banks to handle the voluminous of unstructured data that the banks have to process is growing exponentially with the rise of the digital economy. These are not just banking transaction data, but also other behavioral data that could allow banks to improve and innovate the customer experience. With a combination of various technologies that enable cognitive and robotic process automation bankers can now understand customer action and make a judgment at a higher speed, scale, and quality. Additionally, smart virtual assistants today are handling transactions, providing important information, and helping customers. Robotic Process Automation is improving the user experience by allowing bots to handle repetitive tasks without human intervention. It also reduces errors and enables bank staff members to handle more intricate queries and provide better customer service.

Q10. With the advancement in technology, The idea of a Single Harmonised Payments Mechanism for SAARC is being actively discussed in SAARC payment council. Who is the current head of SAARC payment council
(a) India
(b) Nepal
(c) Bhutan
(d) Myanmar
(e) Sri Lanka

Answer & Explanation

10.Ans (a)
With the advancement in technology, The idea of a Single Harmonised Payments Mechanism for SAARC is being actively discussed in SAARC payment council. India is the current head of SAARC payment council.

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Banking Awareness Quiz for SBI CBO – Quiz 2
Banking Awareness Quiz for SBI CBO – Quiz 1