Banking Awareness Quiz for SBI CBO – Quiz 4

15/01/2022

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. The RBI in Aug 2020 has released the National Strategy for Financial Education for 2020-2025 period. The Strategy recommends adoption of a __________ Approach to achieve financial well-being of all Indians.
(a) Multi-Stakeholder Approach
(b) Multi-Regulators Approach
(c) Multi-Sector Approach
(d) Multi-Responsibility Approach
(e) None of the above

Answer & Explanation

1.Ans (a)
The RBI in Aug 2020 has released the National Strategy for Financial Education for 2020-2025 period. The Strategy recommends adoption of a Multi Stakeholder Approach to achieve financial well-being of all Indians

Q2. The RBI has uploaded Financial Awareness Messages (FAME) as a reading and teaching material with a sincere purpose of making the reader financial literate. The document contains a total of 20 messages on four topics including Financial Competencies, Basic Banking, Digital Financial Literacy and ___________.
(a) Consumer Protection
(b) Bank Notes
(c) UPI & IMPS
(d) Forex
(e) None of the above

Answer & Explanation

2.Ans (a)
The RBI has uploaded Financial Awareness Messages (FAME) as a reading and teaching material with a sincere purpose of making the reader financial literate. The document contains a total of 20 messages on four topics including Financial Competencies, Basic Banking, Digital Financial Literacy and Consumer Protection.

Q3. The Priority Sector Lending (PSL) is one of the important initiatives of the RBI towards Financial Inclusion. Under PSL, banks can lend up to a limit of __________ per borrower for building social infrastructure for activities namely schools, health care facilities, drinking water facilities and sanitation facilities.
(a) Rs.1 crore
(b) Rs.2 crore
(c) Rs.3 crore
(d) Rs.5 crore
(e) None of the above

Answer & Explanation

3.Ans (a)
The Priority Sector Lending (PSL) is one of the important initiatives of the RBI towards Financial Inclusion. Under PSL, banks can lend up to a limit of Rs 1 crore per borrower for building social infrastructure for activities namely schools, health care facilities, drinking water facilities and sanitation facilities

Q4.___________ allocates saving efficiently in an economy to ultimate users
either for investment in real assets or for consumption.
(a) Economic system
(b) Banking system
(c) Financial system
(d) Market system
(e) Government

Answer & Explanation

4.Ans (c)
Financial system allocates saving efficiently in an economy to ultimate users either for investment in real assets or for consumption.

Q5. ___ Financial Institution act as market makers for trading exchanges, and manage mergers, acquisitions, and other corporate restructurings.
(a) Commercial Banks
(b) Investment Banks
(c) Cooperative Banks
(d) Retail Banks
(e) International Banks

Answer & Explanation

5.Ans (b)
Investment Banks are Financial Institutionspecialize in providing services designed to facilitate business operations, such as capital expenditure financing and equity offerings, including initial public offerings (IPOs). They also commonly offer brokerage services for investors, act as market makers for trading exchanges, and manage mergers, acquisitions, and other corporate restructurings.

Q6.The ………………. Established in 1958 has been playing an important role in the development of cooperative marketing in India.
(a) National Agricultural Cooperative Marketing Federation
(b) National Agricultural and Fisheries Marketing Federation
(c) National Association of Fisheries Marketing Federation
(d) National Apex Federation
(e) Small scale Industries development Fund

Answer & Explanation

6.Ans (a)
National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) was established on the auspicious day of Gandhi Jayanti on 2nd October 1958

Q7.Which of the following statements is not true with regard to Call money?
(a) It is short-term finance repayable on demand.
(b) Its maturity period ranges from one day to fifteen days.
(c) There is a direct relationship between call rates and other short-term money market instruments.
(d) It is used for inter-bank transactions.
(e) None of the above

Answer & Explanation

7.Ans (e)
Call money is an important component of the money markets. It has several special features, as an extremely short period funds management vehicle, as an easily reversible transaction, and as a means to manage the balance sheet. Dealing in call money allows banks the opportunity to earn interest on surplus funds.Call money is minimum short-term finance repayable on demand, with a maturity period of one to fourteen days or overnight to a fortnight. It is used for inter-bank transactions. The money that is lent for one day in this market is known as “call money” and, if it exceeds one day, is referred to as “notice money. “There is an inverse relationship between call rates and other short-term money market instruments such as certificates of deposit and commercial paper.

Q8. A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
(a) Expensive in comparison with banks who raise funds from these sources.
(b) Cheaper in comparison with banks who raise funds from these sources.
(c) Creates no effect on other sources.
(d) All the above
(e) None of the above

Answer & Explanation

8.Ans (b)
Call money is a method by which banks lend to each other to be able to maintain the cash reserve ratio. A rise in call money rates makes other sources of finance, such as commercial paper and certificates of deposit, cheaper in comparison for banks to raise funds from these sources.

Q9. Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.
(a) Private placement
(b) Offer through prospectus
(c) Offer for sale
(d) All of the above
(e) None of the above

Answer & Explanation

9.Ans (b)
Offer through prospectus is the most popular method of raising funds by public companies in the primary market. This involves inviting subscription from the public through issue of the prospectus.

Q10. Which among the following form is used for GST registration?
(a) Form GSTR -1A
(b) Form GSTR – 2
(c) Form GST REG-01
(d) Form GST REG

Answer & Explanation

10.Ans (c)
Application for Registration (Other than a non-resident taxable person, a person supplying online information and data base access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, a person required to deduct tax at source under section 51 and a person required to collect tax at source under section 52)) Form GST REG-01.

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