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Banking Terminology

Tests knowledge of banking terminology including financial instruments, regulatory bodies, payment systems, and banking operations

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

Which of the following is the Capital Market Regulator?

  1. RBI
  2. IRDA
  3. NSE
  4. SEBI
  5. BSE
Question 2 Multiple Choice (Single Answer)

Payment of a cheque cannot be made on a cash counter of bank if the cheque is

  1. bearer
  2. cross
  3. order
  4. All of the above
  5. None of these
Question 3 Multiple Choice (Single Answer)

NEFT stands for

  1. Non-Electonic Fund Transfer
  2. National electronic funds transfer
  3. National Electronic Finance Transfer
  4. None of these
Question 4 Multiple Choice (Single Answer)

Which of the following is not an example of 'near-money'?

  1. Bill of exchange
  2. Bonds and debentures
  3. Equity shares of Ranbaxy company limited
  4. Treasury bills of the Government of India
Question 5 Multiple Choice (Single Answer)

What is bank draft?

  1. Letter from a bank
  2. Cheque which a bank draws itself
  3. Instruction to a banker to collect a customer's debt
  4. Instruction not to honour a stop payment
  5. None of these
Question 6 Multiple Choice (Single Answer)

The principal liability of a Joint Stock Bank relates to

  1. it's investment abroad
  2. it's investment at home
  3. repayment of it's customer's deposits
  4. it's requirements to make special deposits when requested
Question 7 Multiple Choice (Single Answer)

All of the following are the liabilities of Commercial Banks, except

  1. security holdings
  2. treasury deposit at banks
  3. demand deposits and time deposits
  4. borrowings from Central Bank
  5. None of these
Question 8 Multiple Choice (Single Answer)

A 'stale' cheque is the one that is

  1. over six months old
  2. over three months old
  3. cancelled by the drawer
  4. written on an account which is overdrawn
  5. convening an overdue payment
Question 9 Multiple Choice (Single Answer)

What is the full form of 'P.O.S.'?

  1. Price on sale
  2. Power of sale
  3. Point of sale
  4. Pick on sale
  5. None of these
Question 10 Multiple Choice (Single Answer)

NDS is

  1. Negotiated Dealing System
  2. Negotiated Digital System
  3. New Digital System
  4. New Dealing system
Question 11 Multiple Choice (Single Answer)

‘Fiat Money’ is that which is

  1. accepted by overseas banks only
  2. decreed as money by the government
  3. backed by gold or silver
  4. accepted temporarily in lieu of gold
  5. None of these.
Question 12 Multiple Choice (Single Answer)

INFINET stands for

  1. Indian Financial Network
  2. Internal Financial Network
  3. International Financial Network
  4. Indian Financial New Electronic Transfer
  5. Indian Non-Financial Network
Question 13 Multiple Choice (Single Answer)

‘Not Negotiable’ written on a cheque crossing means

  1. the cheque cannot be paid to any one but the payee
  2. the cheque is not presented by anyone other than the payee
  3. an honest person receiving a stolen cheque is liable to repay the rightful owner
  4. the cheque must be paid into a bank
  5. none of these
Question 14 Multiple Choice (Single Answer)

Which of the following instruments cannot be endorsed in favour of a third party?

  1. A fixed deposit receipt
  2. A bank draft
  3. A promissory note
  4. Bill of exchange
  5. None of these
Question 15 Multiple Choice (Single Answer)

The money market in our country consists of two sectors viz - the organised sector and the unorganised sector. Which of the following do not fall under the organised sector?

  1. Reserve Bank of India, State Bank of India and Commercial Banks
  2. Life Insurance Corporation of India and Geneal Insurance Corporation
  3. Unit Trust of India
  4. Indigenous bankers
  5. Regional Rural Banks
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