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Banking Awareness For Bank Exams

1. What is a Lease?

a) A rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on specified dates to the owner
b) A legal contract between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset
c) Both (a) and (b)
d) None of the above

2. What is Factoring?

a) An easy way of raising capital from a factoring company by small business
b) Selling of account receivables on a contract basis for cash payment to a factor before it is due
c) An arrangement for raising short term money against prepaid expenses
d) A method of discounting of long term bills

3. Which one of the following is called as initial repayment holiday given to a borrower for repayment of loan?

a) Amortization
b) Moratorium
c) Subvention
d) None of the above

4. Who sets up 'Base Rate' for Banks?

a) Individual Banks Board
b) Interest Rate Commission of India
c) RBI
d) None of the above

5. Which of the following are Bank advances of a Bank?

a) Bad debts
b) Non-performing Assets
c) Out of order accounts
d) Overdrawn accounts

6. Which of the following are benefited through the Reserve mortgage scheme?

a) Government employees
b) Minors
c) Senior citizens
d) All the above

7. Which of the following are the amounts owed to a company that are not going to be paid?

a) Bad debts
b) Non-performing Assets
c) Out of order accounts
d) Overdrawn accounts

8. Whom with Primary Dealers deal in both primary and secondary markets?

a) Corporate Bonds
b) Debentures
c) Equities
d) Government Securities

9. What will be the impact if Reserve Bank of India reduces the Bank Rate by 1%?

a) Less liquidity in the market
b) More liquidity in the market
c) No change in the market liquidity
d) Mobilisation of more deposits by commercial banks

10. What is the full form of IRR?

a) Internal Rate of Return
b) Internal Reserve Ratio
c) Internal Rate of Ratio
d) Internal Recession Rate










SOLUTIONS

1.B
2.B
3.B
4.C
5.B
6.C
7.A
8.D
9.B
10.A

5 Banking and SSC : Banking Awareness For Bank Exams 1. What is a Lease? a) A rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on speci...

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