Banking and Financial Awareness - Online Test

Q1. The Insolvency and Bankruptcy Board of India (IBBI) has registered which company as the first Information Utility?
Answer : Option A
Explaination / Solution:

The Insolvency and Bankruptcy Board of India (IBBI) registered National E-Governance Services Limited (NeSL) as an Information Utility (IU) under the IBBI (Information Utilities) Regulations, 2017. This registration is valid for five years from the date of registration.

Q2. As per the Reserve Bank of India guidelines for licensing of Payments Banks and small finance bank, the promoter's minimum initial contribution to the paid-up equity capital of such banks shall at least be _______for the first five years from the commencement of its business.
Answer : Option C
Explaination / Solution:

As per the Reserve Bank of India guidelines for licensing of Payments Banks and small finance banks, the promoter's minimum initial contribution to the paid-up equity capital of such banks shall at least be 40 percent for the first five years from the commencement of its business.

Q3. Which of the following types of risks are used in calculation of Capital to Risk (Weighted) Assets Ratio (CRAR)? 
I. Operational Risk 
II. Market Risk 
III. Credit Risk 
Select the correct option from the given option:
Answer : Option E
Explaination / Solution:

Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements. Total capital ratio (CRAR) = Eligible Total Capital / RWA for (Credit risk + Market risk + Operational risk)

Q4. Recently World Bank’s arm IBRD signed loan agreement of US$ 119 million for OHEPEE Project. This project is related to which state?
Answer : Option C
Explaination / Solution:

Recently World Bank’s arm IBRD signed loan agreement of US$ 119 million for “Odisha Higher Education Programme for Excellence & Equity (OHEPEE) Project.

Q5. Which of the following bank was acquired by HDFC Bank?
Answer : Option C
Explaination / Solution:

In 2008, Centurion Bank was acquired by HDFC Bank The Centurion Bank of Punjab (formerly Centurion Bank) was an Indian private sector bank that provided retail and corporate banking services. It operated on a strong nationwide franchise of 403 branches and had over 5,000 employees. The bank listed its shares on the major Indian stock exchanges and on the Luxembourg Stock Exchange. On 23 May 2008 HDFC Bank acquired Centurion Bank of Punjab.

Q6. Dutch Disease” is commonly referred to
Answer : Option D
Explaination / Solution:

In economics, the Dutch disease is the apparent causal relationship between the increase in the economic development of a specific sector (for example natural resources) and a decline in other sectors (like the manufacturing sector or agriculture).

Q7. Which body under WTO acts as a dispute settlement body-
Answer : Option B
Explaination / Solution:

It’s the General council which acts as a Dispute settlement body and trade policy review body. It helps member countries to resolve issues and also review trade policy of member countries to ensure that they are WTO compliant.

Q8. Priority Sector Lending includes which of the following sectors in India 
a) Education 
b) Export 
c) Social Infrastructure 
d) Renewable Energy
Answer : Option D
Explaination / Solution:

PRIORITY SECTOR LENDING means provide credit to the needy sectors of the society. 
These sectors are: 
• Agriculture • Micro & Small Enterprises 
• Education • Housing 
• Export • Weaker Sections 
• Social Infrastructure • Renewable Energy

Q9. What are the minimum requirements for setting up of a payment bank. 
a) Maintenance of CRR 4% 
b) Minimum 21% of its "demand deposit balances" in SLR 
c) The minimum paid-up equity capital shall be Rs. 100 crore
Answer : Option A
Explaination / Solution:

Apart from amounts maintained as CRR (4%) on its outside demand& time liabilities, payment banks will be required to invest minimum 75% of its "demand deposit balances" in SLR eligible. The minimum paid-up equity capital shall be Rs. 100 crore.

Q10. India got which rank in world bank’s ‘Ease of doing Business’ 2018 report which was released recently?
Answer : Option E
Explaination / Solution:

India climbed 30 positions in the latest ease of doing business ranking by the World Bank, in its ‘Ease of doing Business’ 2018 report. The report ranks India at 100 among 190 countries. Last year, India was ranked 130. New Zealand, Singapore and Denmark retained their first, second and third spots.