Commercial Banking MCQ with Answers

Question. What is the fullform of „FSDC‟ which is used in financial sectors?
A. Financial Security and Development Council
B. Financial Stability and Development Council
C. Fiscal Security and Development Council
D. Fiscal Stability and Development Council

Answer : B. Financial Stability and Development Council
Explanation: Financial Stability and Development Council is an apex-level body constituted by the government of India.
Chairperson: The Union Finance Minister of India
Members: Governor Reserve Bank of India (RBl), Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA), Secretary, Department of Financial Services (DFS), Chief Economic Advisor, Ministry of Finance, Chairman, Securities and Exchange Board of India (SEBI), Chairman, Insurance Regulatory and Development Authority (IRDA), Chairman, Pension Fund Regulatory and Development Authority (PFRDA), Chairman, Forward Markets Commission (FMC), Additional Secretary, Ministry of Finance, DEA, will be the Secretary of the Council.

Question. A provision in some loans that allows the borrower to change the interest rate from fixed to variable or Vice Versa is termed as __________
A. Convertible Bond
B. Convertible Clause
C. Convertible Security
D. None of the Above

Answer : B. Convertible Clause
Explanation: A provision that can be found on some bonds allowing the bondholder to exchange their debt into common stock.

Question. Taking back of property by a seller or a lender from the buyer or borrower due to default of payment is termed as ________
A. Reconveyance
B. Repossession
C. Recurring Billing
D. Revalidation

Answer : B. Repossession
Explanation: Repossession is a term used to denote a financial institution taking back an object that was either used as collateral or rented or leased.

Question. CRAR stands for _________
A. Capital to Risk-Weighted Assets Ratio
B. Capital to Risk Assets Ratio
C. Credit Rating-Weighted Assets Ratio
D. Credit Rating Assets Ratio

Answer : A. Capital to Risk-Weighted Assets Ratio
Explanation: The Capital Adequacy Ratio (CAR) or Capital-to-Risk weighted Assets Ratio (CRAR) is a measure of a bank‘s capital. It is expressed as a percentage of a bank‘s risk weighted credit exposures. It is used to protect depositors and promote the stability and efficiency of financial systems around the world.

Question. An index that is used to determine interest rates and/or changes of interest rates of certain types of loans is known as _________
A. Covenant
B. CRAR
C. COFI
D. CRAs

Answer : C. COFI
Explanation: A cost of funds index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans.

Question. An account for which a bank acts as an uninterested third party is termed as_______
A. Savings Account
B. Current Account
C. Reserve Account
D. Escrow Account

Answer : D. Escrow Account
Explanation: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. Definition: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

Question. A very large loan extended by a group of small banks to a single borrower is known as ______
A. Secured loan
B. Syndicated loan
C. Non-Recourse loan
D. No Documentation loan

Answer : B. Syndicated loan
Explanation: A syndicated loan is a loan offered by a group of lenders (called a syndicatE. who work together to provide funds for a single borrower. The borrower could be a corporation, a large project, or a sovereignty (such as a government). The loan may involve fixed amounts, a credit line, or a combination of the two.

Question. The difference between the total cost of a project and the sanctioned loan amount is termed as ___________
A. Near Money
B. Hot Money
C. Gross Income
D. Margin Amount

Answer : D. Margin Amount
Explanation: The Difference between the market value of a collateral and amount of the loan advanced against it. Margin Amount is also known as haircut.

Question. A signed undertaking from one party containing a promise to pay a stated sum to a specified person or a company is known as ________
A. Power of Attorney
B. Promissory Note
C. Purchasing Power Parity
D. None of the Above

Answer : B. Promissory Note
Explanation: A promissory note is a legal instrument in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payeE.

Question. Which of the following is defined as the difference between current assets and current liabilities?
A. Venture Capital
B. Working Capital
C. Equitable Mortgage
D. None of the Above

Answer : B. Working Capital
Explanation: The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

Question. Time period that is considered from the inception of the credit, investment or negotiable instrument and ends upon the maturity or expiry of the instrument is referred as ________
A. Amortisation Period
B. Amortising Swap
C. Asset Backed Security
D. Attrition Analysis

Answer : A. Amortisation Period
Explanation: The amortisation period on a mortgage is the total length of time it will take you to pay off your mortgage.

Question. A debt which is irrecoverable and is therefore written off as loss in the accounts of an institution or bank is known as __________
A. external debt
B. good debt
C. bad debt
D. internal debt

Answer : C. bad debt
Explanation: The term bad debts usually refers to accounts receivable (or trade accounts receivablE. that will not be collected.

Question. A loan which is secured by collateral and for which borrower is not personally liable is called __________
A. Secured loan
B. Syndicated loan
C. Non-Recourse loan
D. No Documentation loan

Answer : C. Non-Recourse loan
Explanation: A non-recourse debt is a type of loan that is secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral, but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount.

Question. Which term refers closure of the loan account prior to the tenure fixed for the account?
A. Pre Approved
B. Pre Closure
C. Personal Disposable
D. None of the Above

Answer : B. Pre Closure
Explanation: Prepayment or pre-closure of a loan implies to the early repayment of a loan, in part or in full. Prepayment is done to reduce the tenure of the loan as well as the interest.

Question. ___________ is basically charged when a person uses a credit card to obtain cash.
A. Early Repayment Charge
B. Redemption Fee
C. Transaction Fee
D. Cash Advance Fee

Answer : D. Cash Advance Fee
Explanation: A cash advance fee is a charge that a credit card issuer charges a customer for accessing the cash credit line on his or her account, either through an ATM, convenience check or at a bank‘s teller window.

Question. The unpaid principal balance of a loan on property divided by the asset‟s appraised value is termed as ______
A. Liquidity Adjustment Facility
B. Loss Given Default(LGD)
C. Loan to Value(LTV)
D. Long term liabilities

Answer : C. Loan to Value(LTV)
Explanation: The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is commonly used by banks and building societies to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property.

Question. Which is an interest-free period that is to be given by a creditor to debtor?
A. Fixed Period
B. Preset Period
C. Grace Period
D. None of the Above

Answer : C. Grace Period
Explanation: The grace period is the provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.

Question. __________ is a transfer of property to its real owner, once the loan or mortgage is paid off.
A. Reconveyance
B. Repossession
C. Recurring Billing
D. Revalidation

Answer : A. Reconveyance
Explanation: The transfer of real property that takes place when a mortgage is fully paid off and the land is returned to the owner free from the former debt.

Question. When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called _______
A. Income Deficit
B. Fiscal Deficit
C. Budgetary Deficit
D. None of the Above

Answer : C. Budgetary Deficit
Explanation: A budget deficit occurs whenever a government spends more than it makes, which is nearly every year.Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.

Question. With reference to a cheque which of the following is the „drawee bank‟ ?
A. The bank that collects the cheque
B. The payee‘s bank
C. The endorser‘s bank
D. The bank upon which the cheque is drawn

Answer : D. The bank upon which the cheque is drawn
Explanation: Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. A typical example is if you are cashing a paycheck.

Question. A situation which is providing some relief from tax in whole or part is referred as_________
A. Tax Break
B. Tax Evasion
C. Tax Shifting
D. None of the Above

Answer : A. Tax Break
Explanation: Tax break is a term referring to any item which avoids taxes, including any tax exemption, tax deduction, or tax credit.

Question. Treasury bills are issued in India by ______
A. RBI
B. State Government
C. Government of India
D. SEBI

Answer : C. Government of India
Explanation: Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.

Question. Banking Code & Standards Board of India(BCSBI) set up by ________
A. SEBI
B. Ministry of Finance
C. RBI
D. GOI

Answer : C. RBI
Explanation: The Banking Codes and Standards Board of India (BCSBI) is an independent banking industry watchdog that protects consumers of banking services in India. The board oversee compliance with the ―Code of Bank‘s Commitment to Customers‖

Question. Which of the following term refers the illegal escape from the tax payment?
A. Tax Break
B. Tax Evasion
C. Tax Shifting
D. None of the Above

Answer : B. Tax Evasion
Explanation: Tax evasion is an illegal practice where a person, organization or corporation intentionally avoids paying his/her/its true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties.

Question. An account which remains in operative for an extended period of time is referred as________
A. DEMAT Account
B. Dormant Account
C. Nominal Account
D. Deposit Account

Answer : B. Dormant Account
Explanation: When there has been no financial activity for a long period of time, other than posting of interest, an account can be classified as dormant.

Question. A type of market in which there is a relatively high degree of concentration is referred as _____
A. Mortgage Refinance
B. Oligopoly
C. Near Money
D. Open Economy

Answer : B. Oligopoly
Explanation: Large number of potential buyers but only a few sellers is known as Oligopoly.

Question. Which of the following cheque issued by a customer under a pre-approved arrangement with the bank?
A. Travellers cheque
B. Multi-city Cheque
C. Mutilated Cheque
D. Crossed Cheque

Answer : B. Multi-city Cheque
Explanation: A Multi-City Cheque (MCC) is one that can be written by the customer in favour of his client and is payable at par at all branches of the Bank. These are issued as Order Cheque.

Question. A cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder‟s signature is known as ___________
A. Travellers cheque
B. Multicity Cheque
C. Mutilated Cheque
D. Crossed Cheque

Answer : A. Travellers cheque
Explanation: Traveller‘s cheque is a medium of exchange that can be used in place of hard currency. Traveller‘s cheques are often used by individuals travelling on vacation to foreign countries.

Question. A commission or fee paid, when an agent or an individual sells an investment such as mutual funds or annuity is known as _________
A. Redemption fee
B. Service Charge
C. Regressive tax
D. Sales tax

Answer : A. Redemption fee
Explanation: A mutual fund redemption fee, also referred to as a ―market timing fee‖, or ―short-term trading fee‖, is a charge by a mutual fund company to discourage investors from making a short-term ―round trip‖ (i.e. a purchase, typically a transfer, followed by a sale within a short period of timE..

Question. A legal agreement between the lender and borrower where real estate property is used as a collateral for the loan is termed as ________
A. Mortgage
B. Reverse Mortgage
C. Repossession
D. Refinance

Answer : A. Mortgage
Explanation: A loan that is secured by property or real estate is called a mortgage. In exchange for funds received by the homebuyer to buy property or a home, a lender gets the promise of that buyer to pay back the funds within a certain time frame for a certain cost.

Question. Which of the following is not a measure of the Risk Management in Banks?
A. CRR
B. RTGS
C. SLR
D. Deposit Insurance

Answer : B. RTGS
Explanation: Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers. Deposit insurance is mandatory, and pays claims from a pool of funds to which every depository institution regularly contributes.

Question. “The Doing Business Report” is prepared by which of the following organizations every year?
A. Asian Development Bank(ADB)
B. World Bank(WB)
C. New Development Bank(NDB)
D. World Trade Organization(WTO)

Answer : B. World Bank(WB)
Explanation: The Doing Business Report (DB) is a study elaborated by the World Bank Group since 2003 every year that is aimed to measure the costs to firms of business regulations. The study has become one of the flagship knowledge products of the World Bank Group in the field of private sector development, and is claimed to have motivated the design of several regulatory reforms in developing countries.

Question. Which of the following is not a type of cheque issued by an individual?
A. Bearer Cheque
B. Crossed Cheque
C. Order Cheque
D. Savings Cheque

Answer : D. Savings Cheque
Explanation: An order cheque can be a bearer cheque if the words or bearer are not cancelled out.A crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed.

Question. “World Investment Report” is annually published by ______
A. IBRD
B. WTO
C. IMF
D. UNCTAD

Answer : D. UNCTAD
Explanation: The World Investment Report has been published annually since 1991.Each year´s Report covers the latest trends in foreign direct investment around the World and analyses in depth one selected topic related to foreign direct investment and development.

Question. Scheduled banks are required to keep cash reserve with RBI, interms of _______
A. Section 24 of the Banking Regulation Act, 1949
B. Section 20 of the Banking Regulation Act, 1949
C. Section 42(i) of the RBI Act, 1934
D. Section 42 of Negotiable Instruments Act

Answer : C. Section 42(i) of the RBI Act, 1934
Explanation: Every bank included in the Second Schedule shall maintain with the Bank an average daily balance the amount.

Question. Which of the following is a special type of credit card with stored money value?
A. Preset Value Card
B. Stored Value Card
C. Both(A. & (B)
D. None of the Above

Answer : B. Stored Value Card
Explanation: A stored-value card is a payments card with a monetary value stored on the card itself,not in an external account maintained by a financial institution. Stored-value cards differ from debit cards, where money is on deposit with the issuer, and credit cards which are subject to credit limits set by the issuer.

Question. ________ is a cheque rather an amount of cheque, which is above the balance available in the account of the payer.
A. Travellers cheque
B. Multicity Cheque
C. Mutilated Cheque
D. Over Draft

Answer : D. Over Draft
Explanation: An overdraft is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it.

Question. A financial product which provides senior citizens with funds against their home equity is referred as _______
A. Mortgage
B. Reverse Mortgage
C. Repossession
D. Refinance

Answer : B. Reverse Mortgage
Explanation: A reverse mortgage or home equity conversion mortgage (HECM) is a special type of home loan for older home owners (62 years or older) that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and home owner‘s insurance.

Question. The law regarding negotiable instruments is contained in __________
A. The Bill of exchange Act 1881
B. The Banking Regulation Act 1949
C. Cheques Act, 1881
D. The Negotiable Instruments Act, 1881

Answer : D. The Negotiable Instruments Act, 1881
Explanation: The Negotiable Instruments Act, 1881 – An Act to define and Law relating to negotiable instruments which are Promissory Notes, Bills of Exchange and cheques.

Question. When was the currency system in India converted into decimal system?
A. April 1 1959
B. April 1 1957
C. April 1 1955
D. April 1 1953

Answer : B. April 1 1957
Explanation: The Indian currency system was converted into decimal system by Indian Coinage (Amendment) Act 1955 which brought into force from April 1, 1957.

Question. Which of the following is not e-banking software?
A. ECS
B. RTGS
C. PIPS
D. IBR

Answer : C. PIPS
Explanation:
ECS – Electronic Clearing Service
RTGS – Real Time Gross Settlement
PIPS is not an e-banking software.

Question. NEFT is an electronic fund transfer system that operates on a _________ basis which settles transactions in batches.
A. Domain Net Settlement (DNS)
B. Defined Net Settlement (DNS)
C. Declared Net Settlement (DNS)
D. Deferred Net Settlement (DNS)

Answer : D. Deferred Net Settlement (DNS)
Explanation: NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place with all transactions received till the particular cut-off time. These transactions are netted (payable and receivables) in NEFT.

Question. In National Electronic Funds Transfer (NEFT) maximum amount per transaction is limited to ________
A. Rs.75000
B. Rs.50000
C. Rs.80000
D. Rs.90000

Answer : B. Rs.50000
Explanation: No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

Question. Which of the following is not a member of the World Bank Group?
A. International Development Association(IDA)
B. International Bank for Reconstruction and Development(IBRD)
C. International Finance Corporation(IFC)
D. Bank of International Settlement(BIS)

Answer : D. Bank of International Settlement(BIS)
Explanation: The World Bank Group is made of the following five organizations:
International Bank for Reconstruction and Development (IBRD), established in 1945,
International Finance Corporation (IFC), established in 1956,
International Development Association (IDA), established in 1960,
Multilateral Investment Guarantee Agency (MIGA), established in 1988 and
International Centre for Settlement of Investment Disputes (ICSID), established in 1966.
Where as Bank of International Settlement(BIS)is the Bank for International Settlements is an international financial institution owned by central banks which ―fosters international monetary and financial cooperation and serves as a bank for central banks‖.

Question. Which of the following schemes was replaced by Atal Pension Yojana (APY) in June 2015?
A. Swabhiman
B. Antyodaya Yojna
C. National Pension System
D. Swavalamban
E. None of these

Answer : D. Swavalamban
Explanation: Under APY, Rs 750 crore have been collected so far with 2.8 million accounts Pension fund regulator Pfrda is looking at nearly doubling the Atal Pension Yojana (APY) this fiscal year by opening 5 million accounts

Question. Indian Banking Regulation Act was passed in the year ___________
A. 1989
B. 1968
C. 1949
D. 1948

Answer : C. 1949
Explanation: The Banking Regulation Act, 1949 is a legislation in India that regulates all banking firms in India. Initially, the law was applicable only to banking companies. But, 1965 it was amended to make it applicable to cooperative banks.

Question. Which of the following is an apex institution in the field of Industrial Finance?
A. Industrial Reconstruction Bank of India
B. Industrial Finance Corporation of India
C. Industrial Development Bank of India
D. Industrial Credit & Investment Corporation of India

Answer : C. Industrial Development Bank of India
Explanation: IDBI is the apex financial institution and besides providing financial assistance on consortium basis, the major function of coordination between the various institutions is looked after by the bank. It also provides refinance facility to the eligible financial institutions including term loans. The bank sanctions the financial assistance to the industrial concerns engaged in the manufacture or processing of goods, mining, transport generation and distribution of power etc. both in private and public sectors.

Question. The NEFT system facilitates ____cross-border transfer of funds from India to Nepal which is known as the Indo-Nepal Remittance Facility Scheme.
A. One Way
B. Two Way
C. Multi way
D. None of the Above

Answer : A. One Way
Explanation: The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. A remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees.

Question. What is the charge of Inward transactions at destination bank branches in NEFT?
A. Rs.1
B. Rs.1.50
C. Rs.2
D. No Charge

Answer : D. No Charge
Explanation: Inward transactions – Free, no charge to be levied.

Question. Payments bank of the postal department will have how much corpus at the beginning?
A. Rs 900 crore
B. Rs 600 crore
C. Rs 1000 crore
D. Rs 800 crore
E. Rs 700 crore

Answer : D. Rs 800 crore
Explanation: The payments bank of eth department will be functional by March 2017. It is one of the 11 applicants which got in principle approval to set up payments bank in the country.

Question. Which of the following banks has reported its point of sales terminal (PoS) network as largest in the country?
A. HDFC
B. Punjab National Bank
C. SBI
D. ICICI
E. Axis Bank

Answer : C. SBI
Explanation: SBI‘s point of sales terminal network has become the largest in the country after it took over its private sector rivals. It plans to add 1 lakh PoS terminals in current fiscal ending March 2017.

Question. The beneficiary can expect to get credit for the NEFT transactions within______business hours.
A. 2
B. 3
C. 1
D. None of the Above

Answer : A. 2
Explanation: The beneficiary can expect to get credit for the NEFT transactions within two business hours (currently NEFT business hours is from morning 8 AM to evening 7 PM on all week days and from morning 8 AM to afternoon 1 PM on Saturdays) from the batch in which the transaction was settled.

Question. ICRA, CRISIL, and Standard and Poor‟s (S&P) are ______
A. Financial Institutions
B. NGOs
C. NBFCs
D. Credit Rating Agencies

Answer : D. Credit Rating Agencies
Explanation: A credit rating agency (CRA, also called a ratings servicE. is a company that assigns credit ratings, which rate a debtor‘s ability to pay back debt by making timely interest payments and the likelihood of default.
Example:- ICRA, CRISIL, and Standard and Poor‘s (S&P).

Question. Which of the following is the feature of IBS?
A. Multi Currency
B. Multi Entity
C. Multi Branch
D. All of the above

Answer : D. All of the above
Explanation: Features of IBS: Multi-bank, multi-branch, multi-currency, Highly parametric design, Real time posting and End of Day Processing, Highly efficient Auditing and Control.

Question. NEFT operates in hourly batches and there are _______ settlements from 8 am to 7 pm on week days.
A. 3
B. 6
C. 8
D. 12

Answer : D. 12
Explanation: NEFT operates in hourly batches – there are twelve settlements from 8 am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on Saturdays.

Question. The first 4 alpha characters in the 11 digit IFSC code represents ________
A. Bank Name
B. Branch Name
C. Place Name
D. None of the Above

Answer : A. Bank Name
Explanation: The Indian Financial System Code (IFS Code or IFSC) is an 11-character code with the first four alphabetic characters representing the bank name, and the last six characters(usually numeric, but can be alphabetiC) representing the branch. The fifth character is 0 (zero).

Question. Which of the following cannot be called as a debt instrument as referred in financial transactions?
A. Certificate of Deposits
B. Bonds
C. Stock
D. Commercial Paper

Answer : C. Stock
Explanation: Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporatE. and mortgages.

Question. In NEFT, What is the charge for transactions above Rs 10,000 upto Rs.1 lakh?
A. not exceeding Rs 2.50 (+ Service Tax)
B. not exceeding Rs 5 (+ Service Tax)
C. not exceeding Rs 15 (+ Service Tax)
D. None of the Above

Answer : B. not exceeding Rs 5 (+ Service Tax)
Explanation: Outward transactions at originating bank branches – charges applicable for the remitter For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5 (+ Service Tax)

Question. In NEFT What is the charge for transactions above Rs 1 lakh and upto Rs.2 lakh?
A. not exceeding Rs 2.50 (+ Service Tax)
B. not exceeding Rs 5 (+ Service Tax)
C. not exceeding Rs 15 (+ Service Tax)
D. None of the Above

Answer : C. not exceeding Rs 15 (+ Service Tax)
Explanation: Outward transactions at originating bank branches – charges applicable for the remitter For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)

Question. The BRICS New Development Bank has issued its first ______ denominated bonds.
A. Uridashi
B. Yuan
C. Masala
D. Rupee
E. None of these

Answer : B. Yuan
Explanation: The New Development Bank (NDB) of the BRICS countries is set to issue its first yuandenominated bonds with plans to release more bonds in local currencies including in Indian Rupee
The bank‘s first five-year yuan-denominated bonds, also referred as green bonds, will be issued after receiving a rating from international ratings agencies as well as getting authorities‘ approval

Question. In NEFT What is the charge for transactions up to Rs 10,000?
A. not exceeding Rs 2.50 (+ Service Tax)
B. not exceeding Rs 5 (+ Service Tax)
C. not exceeding Rs 15 (+ Service Tax)
D. None of the Above

Answer : A. not exceeding Rs 2.50 (+ Service Tax)
Explanation: Outward transactions at originating bank branches – charges applicable for the remitter For transactions up to Rs 10,000 : not exceeding Rs 2.50 (+ Service Tax)

Question. Which of the following was declared as “Best Company Promoting Sports (Private sector)” in the country at the National Sports Awards 2015?
A. Kotak Mahindra Bank
B. Yes Bank
C. Axis Bank
D. HDFC Bank
E. None of these

Answer : B. Yes Bank
Explanation: Lalita Babar was named Sportsperson of the Year in India Sports Awards.

Question. Insurance regulator IRDAI has warned which insurance company for noncompliance of „Expenses of Management‟ (EoM) norms?
A. Sahara India Life Insurance
B. Bajaj Allianz Life Insurance
C. Aegon Life Insurance
D. IDBI Federal Life Insurance
E. Max Life Insurance

Answer : A. Sahara India Life Insurance
Explanation: Insurance regulator IRDAI has warned Sahara India Life Insurance Co for noncompliance of ‗Expenses of Management‘ (EoM) norms, and asked it to bring the expenditure levels within the limits by 2016-17-end.

Question. Who has been appointed as the CEO and MD of Airtel Payments Bank?
A. Rakesh Arora
B. Shashi Arora
C. Bharti Mittal
D. Manik Bose
E. Raja Malik

Answer : B. Shashi Arora
Explanation: Airtel Payments Bank has appointed Shashi Arora as the CEO & Managing Director of the company, subject to the approval of the Reserve Bank of India .
Airtel is the first among the 11applicants which were granted in-principle approvals in August 2015 to receive the final license from the central bank.

Question. Which of the following companies has tied up with ICICI Lombard General Insurance to offer motor insurance to its customers?
A. Audi
B. BMW
C. Ford
D. Porsche
E. Volkswagen

Answer : B. BMW
Explanation: BMW has partnered with ICICI Lombard General Insurance to provide the most comprehensive and beneficial motor insurance solutions to BMW customers.

Question. HDFC Ergo general insurance company has agreed to buy which of the following company‟s general insurance business for Rs 551 crore?
A. L&T
B. Tata
C. ICICI Lombard
D. Bajaj Allianz
E. IFFCO-Tokio

Answer : A. L&T
Explanation: HDFC has agreed to pay around 1.1 times the gross premium of L&T General Insurance Company
This will help HDFC Ergo improve its ranking in the sector from fourth largest to third largest in the private sector insurance segment.

Question. The RBI has allowed Axis Bank to raise shareholding to up to ____ from the earlier limit of 49%.
A. 54%
B. 62%
C. 59%
D. 64%
E. 70%

Answer : B. 62%
Explanation: The Reserve Bank of India (RBI) allowed the bank to raise foreign shareholding limit to 62%, from the earlier limit of 49%.
Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest from the existing 49% up to 62%of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS)

Question. Dalal Street in Mumbai is famous for which of the following?
A. NABARD
B. Stock Exchange
C. RBI
D. SEBI

Answer : B. Stock Exchange
Explanation: The Bombay Stock Exchange (BSE. is located at Dalal Street.

Question. The largest number of commercial bank‟s offices are located in ______
A. Kerala
B. Karnataka
C. Uttar Pradesh
D. Tamil Nadu

Answer : C. Uttar Pradesh
Explanation: Uttar Pradesh has the largest number of commercial bank‘s offices.

Question. Deposits which can be withdrawn by a customer without notice is called ________
A. Time Deposits
B. Demand Deposits
C. Variable Deposits
D. Low cost Deposits

Answer : B. Demand Deposits
Explanation: A deposit of money that can be withdrawn without prior notice is known as Demand Deposits, Ex:- in a current account.