Banking Awareness Practice Set 1
1. Which of the following terms appropriately explains the role of banks in an economy?
(a) Financial conglomerate
(b) Holding companies
(c) Financial imtermediaries
(d) Indigenous banking
2. You might have heard of 'a bank run'. What does it mean?
(a) Identifies those banks which are performing very well
(b) Banks which are promoting marathon sports events
(c) When people rush to withdraw funds from their bank accounts
(d) When banks do door to door publicity campaigns
3. Basel Committee on Banking Supervision is associated with which of the following?
(a) Banking Regulation Committee
(b) Bank for International Settlements
(c) Bretton Woods Institution
(d) Federal Reserve
4. What is known as the Open Market Operations of RBI?
(a) Buying and selling of stocks
(b) Auctioning of foreign exchange
(c) Transactions in gold
(d) Trading in securities
5. Cash balances held in the currency chests are the property of which of the following?
(a) Respective banks where the currency chest is located
(b) Reserve Bank of India
(c) The government
(d) The individual bank branch
6. What was achieved by passing the Banking Companies Act, 1969?
(a) Starting of regional rural banks
(b) Nationalization of 14 commercial banks
(c) Introduction of Lead Bank scheme
(d) Introduced the concept of social control of banks
7. Banks often look to have a sizable portion of CASA deposits in their total deposit portfolio. In what does it help.
(a) The cost of funds to the bank is low
(b) it fulfils the mandated requirements
(c) There is no need to renew the deposits
(d) Less of manpower is required to maintain these deposits