Banking & Financial Awareness MCQ Set-19

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 What is the full form of OTC used in stock market operation?

A. Over the Counter

B. Over the Cash

C. Over the Currency

D. Over the Consignment

Answer: A. Over the Counter

Note: Over the Counter in stock market operation means trading of stocks between two parties without supervision of a exchange.

Q.2 FSDC, an apex-level body constituted by the government of India, what does FSDC stand for?

A. Financial Stability and Development Council

B. Financial Security and Development Committee

C. Financial Security and Development Council

D. Financial Stability and Development Committee

Answer: A. Financial Stability and Development Council

Note: Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008. Finally in 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India. An apex-level FSDC is not a statutory body.

Q.3 GRAF seeks to ensure that the corporate governance in PSBs is in place according to various legislation in India, what does A stand for in GRAF?

A. Account

B. Accountability

C. Automatic

D. Adjusted

Answer: B. Accountability

Note: GRAF- Governance, Reward and Accountability Framework, a framework drawn up by Bank Board Bureau (BBB) to hold their own against nifty private sector rivals and possible future merger of PSBs.

Q.4 Under BAPU, beneficiaries certify their identity through scanning their thumbprint on a POS while buying the subsidized product e.g. kerosene at PDS shop, what does BAPU stand for?

A. Biometrically Authenticated Physical Uptake

B. Biometrically Authenticated Physical Update

C. Biometrically Authenticated Physical User

D. None of these

Answer: A. Biometrically Authenticated Physical Uptake

Q.5 Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies, what does BFS stand for?

A. Bureau of Financial Sanction

B. Bureau of Financial Stability

C. Board of Financial Supervision

D. Bureau of Financial Supervision

Answer: C. Board of Financial Supervision

Note: The Board of Financial Supervision is constituted by co-opting four Directors from the Central Board  of RBI as members for a term of two years and is chaired by the Governor of RBI.

Q.6 NFS is the largest network of shared ATMs in India, what does NFS stand for?

A. Network of Financial Switch

B. Network of Financial Stability

C. Network of Financial Service

D. Network of Financial System

Answer: A. Network of Financial Switch

Q.7 PCA is imposed by RBI on banks with a higher percentage of NPA, what does PCA stand for?

A. Primary Current Asset

B. Prompt Corrective Action

C. Primary Corrective Action

D. None of these

Answer: B. Prompt Corrective Action

Q.8 MCLR refers to the minimum interest rate below which financial institutions can’t lend, expect allowed by the RBI, what does M in MCLR stand for?

A. Magnified

B. Marginal

C. Managed

D. Minimum

Answer: B. Marginal

Note: MCLR- Marginal Cost of Funds Based Landing Rate

Q.9 The CAMELS rating is a supervisory rating system originally developed in the US to classify a bank’s overall condition, what does CAMELS stand for?

A. Capital Adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity

B. Capital Account, Asset Management, Earnings, Liquidity and Stability

C. Capital Account, Asset Margin, Earnings, Liquid Cash and Stability

D. None of these

Answer: A. Capital Adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity

Note: CAMELS is also used by banking system outside US that represent six factor bank rating system.

Q.10 SARFAESI Act, 2002 allows banks and other financial institution to auction residential or commercial properties to recover loans, what does SARFAESI stand for?

A. Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest

B. Stability and Reconstruction of Financial Assets and Enforcement of Securities Interest

C. Securitization and Reconstruction of Financial Assets and Enforcement of Securities in India

D. None of these

Answer: A. Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest

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

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