Practice General Topics in Finance Questions and Answers

• What is a 'Nostro' account? 
• Which organization provides credit insurance to Indian exporters? 
• What is the 'EEFC' account? 
• Which body sets the rules and guidelines for foreign exchange dealings in India? 
• Which of the following is a component of 'Tier 2' Capital? 
• 'Operational Risk' is defined as the risk of loss resulting from: 
• 'Haircut' in the context of collateral valuation refers to: 
• What is 'Countercyclical Capital Buffer' (CCyB)? 
• What is the maximum limit for a single transaction through UPI (General)? 
• 'TReDS' is an electronic platform for facilitating the financing of: 
• 'Account Aggregator' (AA) framework in India is regulated by: 
• What is 'Float' in banking? 
• A 'Hybrid' instrument is one that: 
• What is the 'Base Rate' system replaced by for new loans since 2016? 
• Under 'Assignment', which of the following is usually transferred to the bank? 
• 'Gearing Ratio' is another name for which of the following? 
• The 'Banking Ombudsman' can pass an award for compensation for mental agony/harassment up to: 
• Consider the following statements regarding the Cash Reserve Ratio (CRR): 1. Banks earn interest on the CRR balances maintained with the RBI. 2. An increas...
• Regarding the SARFAESI Act, 2002, consider these statements: 1. It allows banks to auction properties without the intervention of a court. 2. It can be inv...
• Consider the following statements about Basel III norms: 1. Pillar 2 focuses on Supervisory Review Process. 2. Common Equity Tier 1 (CET1) is the highest q...
• Regarding Non-Performing Assets (NPAs), evaluate these statements: 1. An account is classified as Doubtful if it has remained in the sub-standard category ...
• Consider the following regarding Priority Sector Lending (PSL): 1. Export credit is considered a category under PSL. 2. Loans to MSMEs for activities like ...
• Evaluate the statements on the Banking Ombudsman Scheme: 1. There is no fee for filing a complaint before the Ombudsman. 2. The Ombudsman can act as a medi...
• Regarding Letter of Credit (LC) and Bank Guarantee (BG): 1. LC is a primary payment mechanism used in trade. 2. BG is a contingent liability for a bank. 3....
• Consider the following regarding the DICGC: 1. It is a fully owned subsidiary of the RBI. 2. It insures both principal and interest up to ₹5 Lakh. 3. It ...
• Regarding 'Prompt Corrective Action' (PCA) framework: 1. PCA applies to both Public and Private sector banks. 2. It is triggered if the Net NPA of a bank e...
• Consider the following statements on Working Capital Assessment: 1. The Tandon Committee suggested the "Maximum Permissible Bank Finance" (MPBF) method. 2....
• Regarding the External Benchmark Lending Rate (EBLR) framework, consider the following statements: 1. Banks are free to choose any external benchmark, incl...
• Consider the revised MSME classification (effective July 2020) and evaluate these statements: 1. The distinction between manufacturing and service sectors ...
• Regarding 'Small Accounts' (Simplified KYC), consider the following statements: 1. The aggregate of all credits in a financial year should not exceed ₹1 ...
• In the context of 'Charges on Securities', consider these statements: 1. In a Pledge, the bank has the right to sell the goods without a court order after ...
• Evaluate the following statements regarding Credit Default Swaps (CDS): 1. It is a credit derivative contract that enables an investor to transfer credit r...
• Regarding the Statutory Liquidity Ratio (SLR), consider these statements: 1. SLR is maintained to ensure that banks have liquid assets to meet unexpected d...
• Consider the following statements about Commercial Paper (CP): 1. It is a short-term, unsecured promissory note. 2. Only companies with a minimum net worth...
• Regarding the 'Right of Set-off', evaluate the following statements: 1. It allows a bank to combine two accounts of the same customer to recover a debt. 2....
• Consider the following regarding the Liberalized Remittance Scheme (LRS): 1. It is available to all resident individuals, including minors. 2. It is availa...
• In the context of SWIFT, what does the 'Relationship Management Application' (RMA) specifically do? 
• Regarding RTGS (Real Time Gross Settlement), what happens if a 'Customer Payment' (R-41) is not credited to the beneficiary's account within the stipulated...
• Which of the following is a key difference between NEFT and RTGS? 
• Under the Kisan Credit Card (KCC) scheme, the 'Scale of Finance' for a crop is decided by: