Bank of India Banking Awareness Questions Quiz for All Bank Exam

Bank of India Banking Awareness

Multiple Choice Question on Bank of India Banking Awareness 

1. Which of the following organisations is known as the market regulator in India?      [BOI 2008]
(a) IBA
(b) SEBI
(c) AMFI
(d) NSDL
(e) None of these

2. The Reserve Bank of India keeps on changing various ratios/rates frequently. Why is this done? [BOI 2008]
(1) To keep inflation under control
(2) To ensure that Indian Rupee does not lose its market value
(3) To ensure that banks do not earn huge profits at the cost of public money.
(a) Only (1) (b) Only
(2) (c) Only
(3) (d) All (1), (2) & (3)
(e) None of these

3. What does EMI indicate in the context of a bank loan?
(a) Equal Monetary Incentive
(b) Equated Monthly Instalment
(c) Exact Monthly Indicator
(d) Exact Mean Index
(e) Easy Monthly Instalment

4. Banks are required to provide loans to the priority sector upto a specified limit. What is the limit for public sector banks?
(a) 40 percent
(b) 32 percent
(c) 45 percent
(d) 35 percent
(e) 50 percent

5. The rate of interest banks charge to its customers is linked to—
(a) Risk premium rate
(b) Base rate lending
(c) Benchmark prime lending rate
(d) Reverse repo rate
(e) Cash Reserve Ratio

6. Which of the following is a term not linked to banking and financial transactions?
(a) Provision coverage ratio
(b) Securitization
(c) Credit default swap
(d) Consolidation
(e) Assets and Liabilities

7. Which one of the following does not qualify as priority sector lending by commercial banks?
(a) Software exports
(b) Small business loans
(c) Education loans
(d) Small industries loan
(e) Agriculture

8. Bank loan against property requires the asset to be free from encumbrances. What does it mean?
(a) The asset to be free from any liability
(b) The asset to be properly registered
(c) The property to be fully constructed
(d) The asset should not have multiple owners
(e) None of the given options is true

9. Which of the following lending qualifies as a priority sector loan?
(a) Loan for purchase of gold for marriage of daughter
(b) Loan for consumer durables
(c) Housing loan
(d) Loan for purchase of tractor
(e) None of the given options is true

10. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests or SAFRAESI Act is meant to—
(a) Make recovery of bad loans simpler
(b) Enable banks to recover the loan amount due without the intervention of the court
(c) Make disbursement of loans simpler
(d) For faster sanction of loans and advances
(e) None of the given options is true

Updated: September 2, 2018 — 2:08 pm