Banking Awareness Practice Set
1. Which of the following terms is used in Banking Field?
Answer : Interest Rate Swap
2. Expand the term ALM as used in Banking/Finance sector?
Answer : Asset Liability Management
3. What is the full form of the term LIBOR as used in financial banking sectors?
Answer : London inter Bank Official Ratio
4. Expand the term FSDC which is used in financial sectors?
Answer : Financial Stability and Development Council
5. What is the reason for Basel II norms to be followed by Commercial Banks?
Answer : Risk Management
6. Which will set up core banking infrastructure for rural banks?
Answer : NABARD
7. Which rates/ratios is not covered under the RBI monetary and credit policy?
Answer : Exchange rate of foreign currencies
8. When a loan is granted by a bank for purchase of white goods it is called?
Answer : Consumer durable loan
9. As per the reports in various newspapers many many private companies are trying to obtain the licences to launch a banking company in India. Which of the following organizations/agencies issue the licence for the same?
Answer : Indian Banks Association
10. Which methods is being adopted by Banks for calculating and applying interest on Savings Bank accounts?
Answer : Daily balance is counted and interest is paid accordingly