Banking & Financial Awareness MCQ Set-20

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

Q.1 What does BHIM stand for?

A. Bharat Interface for Money

B. Bharat Internet for Money

C. Bharat Internet for Management

D. Bharat Interface for Management

Answer: A. Bharat Interface for Money

Q.2 What does UPI stand for?

A. Unique Payment Interface

B. Unified Payment Interface

C. Unified Payment Internet

D. None of these

Answer: B. Unified Payment Interface

Q.3 APY is the amount of interest you gain from keeping money in an account in a year, including compound interest, what does Y in APY stand for?

A. Yield

B. York

C. Yearly

D. Yeast

Answer: A. Yield

Note: APY- Annual Percentage Yield is the amount of interest you gain from keeping money in an account in a year, including compound interest.

Q.4 What is the full form of APR that doesn’t consider the compound interest?

A. Annual Percentage Rate

B. Annually Permittable Rate

C. Annual Percentage Ratio

D. None of these

Answer: A. Annual Percentage Rate

Note: Annual Percentage Rate (APR) is the yearly interest you earn by depositing your money your money into an account. This does not take into consideration the compound interest.

Q.5 SLR is the minimum reserve required by the bank to maintain in the form of gold, what does S in SLR stand for?

A. Stability

B. Single

C. Statutory

D. Sanctioned

Answer: C. Statutory

Note: Statutory Liquidity Ratio (SLR) is the minimum reserve required by the bank to maintain in the form of gold with the RBI.

Q.6 Which among the following defines the Notice Money?

A. When the money is borrowed or lent for more than a day up to 14 days

B. When the money is borrowed or lent with a notice

C. When the money is borrowed or and notice is served for not returning

D. None of these

Answer: A. When the money is borrowed or lent for more than a day up to 14 days

Q.7 NIRP means that central banks will deduct money from commercial banks for depositing their money with the central bank, what does N is NIRP stand for?

A. National

B. Negative

C. Net

D. Neutral

Answer: B. Negative

Note: Negative Interest Rate Policy means that central banks will deduct money from commercial banks for depositing their money with the central bank. Commercial banks, in turn, will do the same to common people. When there is less demand for loans the banks park their excess fund with the central bank by which they get interest NIRP occurs.

Q.8 The method used by fraudsters to capture customer’s personal or account information of credit card is called as:

A. Scanning

B. Skimming

C. Capturing

D. None of these

Answer: B. Skimming

Note:  In the skimming method when customer’s card is swiped through the skimmer and the information contained in the magnetic strip on the card is then read into and stored on the skimmer or an attached computer.

Q.9 Direct Debit is a:

A. Financial activity in which one person withdraws funds from another person’s bank account

B. Financial activity in which one person withdraws funds from own account

C. Financial activity in which one person withdraws fund using debit/credit card without visiting the bank physically

D. None of these

Answer: A. Financial activity in which one person withdraws funds from another person’s bank account

Q.10 MSF is the rate through which bank can borrow funds for Short time – Overnight basis, what does MSF stand for?

A. Minimum Standing Fund

B. Marginal Standing Fund

C. Marginal Standing Facility

D. Minimum Standing Facility

Answer: C. Marginal Standing Facility

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

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