Banking Awareness Quiz – Set 126

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Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. NSDL Group comprises which of the following companies?
   A. National Securities Depository Limited (NSDL)
   B. NSDL Database Management Limited (NDML)
   C. NSDL e-Governance Infrastructure Limited.
   D. All of these
   E. None of these
   
   Answer & Explanation

   D. All of these
   Explanation:
   NSDL Group comprises National Securities Depository Limited (NSDL), NSDL Database Management Limited (NDML) and NSDL e-Governance Infrastructure Limited.
   
   
2. A depository interfaces with the investors through its agents called ______
   A. Investors
   B. Agents
   C. Executive
   D. Depository Participants
   E. None of these
   
   Answer & Explanation

   D. Depository Participants
   Explanation:
   A depository interfaces with the investors through its agents called Depository Participants
   
   
3. Which of the following is/are the benefit(s) of participation in a depository?
   A. Immediate transfer of securities
   B. Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.,
   C. Reduction in paperwork involved in transfer of securities
   D. Nomination facility
   E. All of these
   
   Answer & Explanation

   E. All of these
   Explanation:
   Benefits:
   Immediate transfer of securities
   Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.,
   Reduction in paperwork involved in transfer of securities
   Nomination facility
   Reduction in transaction cost.
   
   
   
4. Which of the following facilities is/are offered by NSDL?
   A. Dematerialisation
   B. Rematerialisation
   C. Facilitating repurchase
   D. Electronic Settlement
   E. All of these
   
   Answer & Explanation

   E. All of these
   Explanation:
   Facilities:
   Dematerialisation
   Rematerialisation
   Facilitating repurchase / redemption of units of mutual funds
   Electronic settlement of trades in stock exchanges connected to NSDL
   Nomination facility for demat accounts;
   
   
5. The process of converting physical certificates to electronic form is known as?
   A. Dematerialisation
   B. Rematerialisation
   C. Facilitating repurchase
   D. Electronic Settlement
   E. All of these
   
   Answer & Explanation

   A. Dematerialisation
   Explanation:
   Dematerialisation – converting physical certificates to electronic form.
   
   
6. Which of the following refers to the conversion of securities in demat form into physical certificates?
   A. Dematerialisation
   B. Rematerialisation
   C. Facilitating repurchase
   D. Freezing
   E. All of these
   
   Answer & Explanation

   B. Rematerialisation
   Explanation:
   Rematerialisation – conversion of securities in demat form into physical certificates.
   
   
7. By which of the following a demat account holder can prevent unexpected debits or credits, or both, creeping into the account?
   A. Dematerialisation
   B. Rematerialisation
   C. Facilitating repurchase
   D. Freezing
   E. All of these
   
   Answer & Explanation

   D. Freezing
   Explanation:
   By freezing, the account holder can prevent unexpected debits or credits, or both, creeping into the account
   
   
8. How long does the dematerialisation process take?
   A. 15 days
   B. 10 days
   C. 20 days
   D. 30 days
   E. All of these
   
   Answer & Explanation

   D. 30 days
   Explanation:
   Dematerialisation will normally take about 30 days.
   
   
9. Any trade settled through a clearing corporation is termed as?
   A. Dematerialisation
   B. Market Trade
   C. Rematerialisation
   D. Off Market Trade
   E. All of these
   
   Answer & Explanation

   B. Market Trade
   Explanation:
   Any trade settled through a clearing corporation is termed as a ‘Market Trade’. These trades are done through stock brokers on a stock exchange.
   
   
10. Any trade which is settled directly between two parties without the involvement of clearing corporation is termed as?
    A. Dematerialisation
    B. Market Trade
    C. Rematerialisation
    D. Off Market Trade
    E. All of these
    
    Answer & Explanation

    D. Off Market Trade
    Explanation:
    ‘Off Market Trade’ is one which is settled directly between two parties without the involvement of clearing corporation.