• Banking Quiz -65

    641 The purpose of which is to make credit of available to essential sectors of the economy according to national priorities?
      A) Selective Credit Control (SCC)
      B) Maintenance of cash reserve
      C) Reserve fund
      D) Comprehensive Credit Control
    642 The system of note issue followed by the RBI is?
      A) Proportional reserve system
      B) Minimum reserve system
      C) Maximum reserve system
      D) Maximum fiduciary system
    643 Credit rating helps in measuring the credit risk and facilitates?
      A) Considering higher credit limits
      B) Making loan provisioning at an early stage
      C) Accurately calculate the probable loan losses
      D) Pricing of a loan
    644 The rate at which the Reserve Bank of India lends to the commercial banks in very short term against the backing of the Government securities is known as?
      A) Bank rate
      B) Repo rate
      C) Reverse Repo
      D) Discount rate
    645 Six private sector banks were nationalised on April 15, 1980, whose reserves were more than?
      A) Rs 100 Crores
      B) Rs. 200 crores
      C) Rs 300 crores
      D) Rs 400 crores
    646 The Reverse Repo has the following characteristic?
      A) Borrowing by RBI from banks
      B) Borrowing with government security as collateral
      C) Short term borrowing
      D) All of these
    647 Regional Rural Banks are?
      A) Private Sector scheduled commercial banks
      B) Cooperative banks
      C) Foreign banks
      D) Public sector scheduled commercial banks
    648 Banks insist on providing finance for those projects or activities only which they consider to be viable. What is meant by viability of project?
      A) Capacity to generate cash, adequate to service debt and surplus for borrower’s personal requirement.
      B) Generation of cash to meet debt liability
      C) Generation of profits.
      D) Generation of gross profits
    649 The banker-customer relationship in credit card payment is?
      A) Creditor-debtor
      B) Debtor-creditor
      C) Agent principal
      D) Principal-agent
    650 A letter of credit (LC) wherein the credit available to the customer gets reinstated after the bill is paid is known as?
      A) Back to back LC
      B) Red clause LC
      C) Back to front LC
      D) Revolving LC


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