Banking & Financial Awareness MCQ Set-18

Find out the most important Banking & Financial Terminology MCQ for IBPS, SBI PO, Insurance examinations and various other competitive examinations of the BFSI sector in India.

Q.1 AEPS, a way to make financial transaction with the help of biometrics without physical signature of debit/credit card, what is the full form of AEPS?

A. AADHAR Enabled Payment System

B. AADHAR Enabled Payment Server

C. Account Enabled Payment System

D. None of these

Answer: A. AADHAR Enabled Payment System

Note: AEPS is developed by the National Payment Corporation of India (NPCI) in collaboration with UIDAI.

Q.2 What is the full form of LTV in banking and financial sector?

A. Long Term Variable

B. Loan to Value

C. Long Term Value

D. Loan Term Variable

Answer: B. Loan To Value

Note: Loan-to-Value is used by financial institutions to express the ratio of a loan to the value of the asset purchased.

Q.3 What is the full form of EEFC, an account of foreign exchange earners;?

A. Exchange Earners’ Foreign Currency

B. Exchange Earning Foreign Capital

C. Exchange Earners’ Foreign Capital

D. Exchange Earners’ Foreign Cash

Answer: A. Exchange Earners’ Foreign Currency

Note: Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorized Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. It is a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.

Q.4 PFE is a measure of counterparty risk/credit risk expected over a specified period, what does PFE stands for?

A. Potential Foreign Expectation

B. Potential Future Exposure

C. Potential Foreign Exposure

D. Potential Future Expectation

Answer: B. Potential Future Exposure

Note: PFE, a measure of counterparty risk/credit risk is calculated by evaluating existing trades done against the possible market prices in future during the lifetime of transactions.

Q.5 APBS, one of the unique method implemented by the NPCI for using AADHAR as a central key for electronically channelizing government benefits and subsidies to the AADHAR enabled Bank Accounts (AEBA) of intended beneficiaries, what does APBS stand for?

A. AADHAR Payment Baking System

B. AADHAR Payment Bridge System

C. AADHAR Payment Banking Structure

D. None of these

Answer: B. AADHAR Payment Bridge System

Q.6 TIEA provides exchange of information on request relation to specific criminal or civil tax investigations; what is the full form of TIEA?

A. Tax Information Exchange Agreement

B. Tax Information Enabled Authority

C. Tax Information Enforcement Authority

D. None of these

Answer: A. Tax Information Exchange Agreement

Note: Tax information exchange agreements (TIEA), a model developed by Organization for Economic Co-operation and Development (OECD) to provide for the exchange of information on request relating to a specific criminal or civil tax investigation or civil tax matters under investigation.

Q.7 EFTPOS, a payment system based on use of payment cards, what does F stand for in EFTPOS?

A. Finance

B. Fund

C. Facility

D. Financial

Answer: B. Fund

Note: EFTPOS stands for Electronic Fund Transfer at Point of Sale.

Q.8 VPA, an identifier that can be uniquely mapped to a particular transaction of a individual account, what does VPA stand for?

A. Virtual Payment Account

B. Virtual Payment Address

C. Virtual Personal Address

D. Virtual Personal Account

Answer: B. Virtual Payment Address

Q.9 PAC is used to verify the cardholder when accessing online, mobile or tele-banking facility, what does A stand for in PAC?

A. Account

B. Access

C. Automatic

D. Authorize

Answer: B. Access

Note: PAC- Personal Access Code, different for PIN to verify cardholder when trying to access mobile, online or telebanking.

Q.10 CIRD, an agency of the government of India that stores and manages data for the country’s Aadhar project, what is the full form of CIDR?

A. Central Identification Data Repository

B. Central Identification Data Registry

C. Central Identities Data Registry

D. Central Identities Data Repository

Answer: D. Central Identities Data Repository

List of Banking & Financial Awareness MCQ sets from GKLead.com

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