Banking & Financial Awareness Quiz: Part 28

1. Insurance Regulatory and Development Authority of India (IRDAI) headquarter is located in
a. Pune
b. Delhi
c. Hyderabad
d. Bangalore


2. ATMs which are set up, owned and operated by non-banks entities are calleda. Green Label ATM
b. White Label ATM
c. Yellow Label ATM
d. Pink Label ATM

3. One cannot trade in the stock market without a
a. Money Market Deposit Accounts
b. Certificates of Deposit
c. Demat Account
d. Interest-Bearing Checking Accounts

4. What does the last 6 characters of IFSC code refer to?
a. Bank's Name
b. Type of Account
c. Account Holder's Name
d. Bank Branch

5. Notice money means money lent or borrowed for a period of
a. 5-8 Days
b. 2-14 days
c. 1-7 Days
d. 9-12 Days

6. Risks that arise due to the failure of day to day activities, system or people are called
a. Operational Risks
b. System Risks
c. Market Risks
d. Moral Hazards

7. Basel 1 norms focused entirely on
a. Inflation Risk
b. Credit Risk
c. Liquidity Risk
d. Horizon Risk

8. In which year did India adopt Basel 1 guidelines?
a. 1999
b. 1998
c. 1986
d. 1987

9. Which of the following is the oldest stock exchange of the world?
a. New York Stock Exchange
b. Bombay Stock Exchange
c. Amsterdam Stock Exchange
d. Australian Securities Exchange

10. Under Aadhar Enabled Payment System (AEPS), the maximum amount of transaction per account per day is
a. 50,000
b. 25000
c. 1 Lakh
d. 5 lakh

Answers with Explanation

1. c. Hyderabad
Insurance Regulatory and Development Authority of India (IRDAI) was set up under IRDA act 1999 with headquarters at Hyderabad.

2. b. White Label ATM
ATMs which are set up, owned and operated by non-banks entities (registered under Payments & Settlement Systems Act 2007) are called White-label ATMs.

3. c. Demat Account
A Demat Account is the account that holds all your shares in electronic or dematerialized form. It holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and Exchange Traded Funds (ETFs). One cannot trade in the stock market without a demat account.

4. d. Bank Branch
Indian Financial System Code (IFSC) code is 11 digit alpha numeric code which is used to identify a bank branch participating in NEFT system. IFSC code-- ALLA0212759 ; Here first 4 character signify bank name i.e. Allahabad bank, first character is 0 and last 6 characters represents bank branch.

5. b. 2-14 days
Call money refers to the borrowing or lending of money for 1 day while notice money means money lent or borrowed for a period of 2-14 days.

6. a. Operational Risks
Risks that arise due to the failure of day to day activities, system or people are called operational risks. It includes both internal and external factors like failures related to rules & regulations, policies, documentation or any technological problem.

7. b. Credit Risk
Basel 1 norms focused entirely on credit risk. Credit risk refers to the risk that a borrower may not repay a loan and that the lender may lose the principal of the loan or the interest associated with it. India adopted Basel 1 guidelines in 1999.
8. a. 1999
India adopted Basel 1 guidelines in 1999.

9. c. Amsterdam Stock Exchange
Bombay Stock Exchange (BSE) is India’s and Asia’s oldest stock exchange while Amsterdam Stock Exchange is the oldest in the world which was established in 1602 by Dutch East India Company.

10. a. 50,000
Under Aadhar Enabled Payment System (AEPS), the maximum amount of transaction per account per day is Rs. 50,000.