Banking Awareness Quiz for SBI CBO – Quiz 5

18/01/2022

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 books and records of accounts U/s 35 arr to be maintained at
(a) Place where the books and accounts are maintained
(b) Place of address of the Proprietor/ Partner/Director/Principal Officer
(c) Principal place of business mentioned in the Certificate of Registration
(d) Any of the above

Answer & Explanation

1.Ans (c)
The books and records of accounts U/s 35 arr to be maintained at Principal place of business mentioned in the Certificate of Registration.

Q2. Balance in electronic cash ledger under SGST may be used against ____
(a) SGST Liability only
(b) SGST and IGST liability
(c) SGST, IGST and CGST liability
(d) None of them

Answer & Explanation

2.Ans (b)
Balance in electronic cash ledger under SGST may be used against SGST and IGST liability only.

Q3.___ code is used in clearance process of cheques and other documents. It is present at the bottom of the cheques.
(a) LEI
(b) IFSC
(c) ISIN
(d) SWIFT
(e) MICR

Answer & Explanation

3.Ans (e)
MICR – stands for Magnetic Ink Character Recognition. It is a 9 digit unique code that identifies the particular branch of a particular bank and used mainly by the banking industry to ease the clearance process of cheques and other documents. It is present at the bottom of the cheques.

Q4. TAN is ____ digit alpha Numeric code
(a) 10
(b) 7
(c) 9
(d) 11
(e) 12

Answer & Explanation

4.Ans (a)
TAN – stands for Tax Deduction and Collection Account Number. It is a 10 character alphanumeric code and is issued to person’s requisite to TDS or TCS under Income Tax Act, 1961. Without it, TDS/ TCS payment challans are not accepted by the banks.
Example – PDES03028F where the first four characters are alphabets in which first 4 characters represent the city or state and 4th character is the name of the deductor, next five characters are numerals and last is an alphabet

Q5. The first four digits of MMID Represent
(a) Bank of the user
(b) User Account
(c) Branch Code
(d) City Code.
(e) Location

Answer & Explanation

5.Ans (a)
MMID – stands for Mobile Money Identifier (MMID). It is a 7 digit code issued by the bank to mobile banking registered customers for availing IMPS services. Different accounts have different MMIDs which can be linked to a single registered mobile number.
Example- 7893456 where the first four digits denote the bank of the user and next three digits identify the user account.

Q6. Changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses is measured through which Inflation?
(a) Wholesale Price Index
(b) Consumer Price Index
(c) National Income deflator
(d) None of the above
(e) All the above

Answer & Explanation

6.Ans (a)
It measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses.
Published by the Office of Economic Adviser, Ministry of Commerce and Industry.
It is the most widely used inflation indicator in India.
Major criticism for this index is that the general public does not buy products at wholesale price.

Q7. Which of the following can be undertaken to control inflation?
(a) Control on public expenditure
(b) Control on hoarding and black marketing
(c) Effective control on credit
(d) All the above
(e) None of these

Answer & Explanation

7.Ans (d)
Inflation can be controlled using monetary, fiscal and other measures.

Q8. Aim of economic development fails when deficit financing creates additional paper currency to fill the gap between expenditure and revenue, is known as
(a) inflation
(b) devaluation
(c) deflation
(d) demonetization

Answer & Explanation

8.Ans (a)
Aim of economic development fails when deficit financing creates additional paper currency to fill the gap between expenditure and revenue, is known as inflation.

Q9. Which of the following is not an OVD – Officially Valid Document
(a) Passport (within validity)
(b) Driving license (within validity)
(c) Voters Identity card
(d) Aadhar Card
(e) None of the above

Answer & Explanation

9.Ans (d)
OVD are: Passport (within validity), Driving license (within validity), Voters Identity card, Job card issued by NREGA.

Q10. ________________ means undertaking client due diligence measures while commencing an account-based relationship including identifying and verifying the customer and the beneficial owner on the basis of one officially valid document.
(a) Customer Identification
(b) Customer Service Policy
(c) Banking Codes
(d) Monitoring of Transactions
(e) None of the above

Answer & Explanation

10.Ans (a)
Customer identification means undertaking client due diligence measures while commencing an account-based relationship including identifying and verifying the customer and the beneficial owner on the basis of one officially valid document.

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