Banking Awareness Quiz for SBI CBO – Quiz 7

20/01/2022

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. NNPFC =
(a) GNPFC – Depreciation
(b) NNPMP + Economic subsidy – Indirect taxes
(c) NDPMP + Net factor income from abroad
(d) All of these
(e) None of the above

Answer & Explanation

1. Ans (b)
Net National Product at Factor Cost or National Income is the sum total of net value added at factor cost by all the normal resident producer enterprises of a country during a year.
NNPFC= NNPMP- Indirect taxes + Subsidies

Q2. Which of the following is the method of measuring National Income?
(a) Income method
(b) Product method
(c) Expenditure method
(d) All of these
(e) None of the above

Answer & Explanation

2.Ans (d)
The national income of a country can be measured by three alternative methods: (i) Product Method (ii) Income Method, and (iii) Expenditure Method.

Q3. Which is the equilibrium condition of circular flow in the four sector model?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these
(e) Any of the above

Answer & Explanation

3.Ans (c)
In this model, the equilibrium condition is as follows: Y = C + I + G +(X-M) Where, Y = Income; C = Consumption; I = Investment and G = Government Expenditure In a closed economy, aggregate demand is measured by adding consumption, investment and government expenditure,(X-M =Exports- Imports)

Q4. RTGS transactions are processed ____
(a) Within 30 minutes
(b) Every 2 hours
(c) Before the business hour
(d) Next working day
(e)None of the above

Answer & Explanation

4.Ans (a)
Real-Time Gross Settlement (RTGS) is a way of fund transfer that sends money by remitter to immediately reach the beneficiary/payee as and when the request is received. The beneficiary receives the money or payment within 30 minutes of the request.

Q5. What is Inward transaction charges for NEFT at destination bank branches?
(a) 0.5% of the transaction
(b) 1% of the transaction
(c) No charges to be collected from the beneficiary
(d) Depending upon the bank public/private
(e) None of the above

Answer & Explanation

5.Ans (c)
No charges to be collected from the beneficiary, on Inward transaction charges for NEFT. In July 2019 RBI announced that all charges on NEFT & RTGS to be weived and benefit to be passed to customers.

Q6. ______ was introduced by the National Payments Corporation of India, for interbank, high volume, electronic transfers, which were
periodic in nature.
(a) RTGS
(b) NEFT
(c) NACH
(d) UPI/Bank transfer
(e) None of the above

Answer & Explanation

6.Ans (c)
The National Automated Clearing House (NACH) was introduced by the National Payments Corporation of India, for interbank,
high volume, electronic transfers, which were
periodic in nature.

Q7.The protection to paying bank for crossed cheque is covered under which section of N I Act:
(a) Section 138
(b) Sectionl31
(c) Section 128
(d) Section 85
(e) Section 152

Answer & Explanation

7.Ans (c)
Section 131 in The Negotiable Instruments Act, 1881
131. Non-liability of banker receiving payment of cheque.—A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.

Q8.What is ‘bills of exchange’:
(a) “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
(b) A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing any person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
(c) A “bill of exchange” is an instrument in writing containing a conditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
(d) A “bill of exchange” is an instrument containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
(e) None of the above

Answer & Explanation

8.Ans (a)
Bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay on demand or at fixed or determinable future time a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.

Q9. Where the holder of an instrument endorses it in a manner that does not incur any liability as an endorser, such endorsement is called as:
(a) Sans recourse Endorsement
(b) Conditional endorsement
(c) Facultative endorsement
(d) Restrictive Endorsement
(e) Transferable Endorsement

Answer & Explanation

9.Ans (a)
Sans Recourse Endorsement contains a clause inserted into an agreement which indicates that the endorser does not wish to incur liability if the document of title is not honored. It is essentially saying that the other party is entering into agreement at his or her own risk.

Q 10.Under the standard assets, direct advance to agriculture or Micro and Small Enterprise (Not medium) is __ %of outstanding
(a) 1
(b) 0.5
(c) 2.5
(d) 0.25
(e) 1.5

Answer & Explanation

10.Ans (d)
Under the standard assets direct advance to agriculture or Micro and Small Enterprise (Not medium) is 0.25 % of outstanding.

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