Banking Awareness Quiz – Set 142

Hello Aspirants,
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. Which of the following is the recovery of small loans?
   A. Debt Recovery Tribunal
   B. ARC
   C. Lok Adalats
   D. All of these
   E. None of these
   
   Answer & Explanation

   C. Lok Adalats
   Explanation:
   Lok Adalats is the recovery of small loans.
   
   
2. _______ specialized in resolution of stressed assets.
   A. Debt Recovery Tribunal
   B. ARC
   C. Lok Adalats
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. ARC
   Explanation:
   Asset Reconstruction Companies(ARCs)specialized in resolution of stressed assets.
   
   
3.  _______were established under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993
   A. Debt Recovery Tribunal
   B. Lok Adalats
   C. Debts Recovery Appellate Tribunal (DRATs)
   D.Both (A) and (C)
   E. Both (B) and (C)
   
   Answer & Explanation

   D.Both (A) and (C)
   Explanation:
   The Debt Recovery Tribunal and Debts Recovery Appellate Tribunal (DRATs) were established under the Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993
   
   
4. Which of the following Risk develops from the business transactions done by the Banks exposed to potential Loss?
   A. Financial Risk
   B. Market Risk
   C. Liquidity Risk
   D. Interest Rate Risk
   E. Credit Risk
   
   Answer & Explanation

   A. Financial Risk
   Explanation:
   Financial Risk develops from the business transactions done by the Banks exposed to potential Loss
   
   
5. _______ is the most prominent for banks present in investment Banking.
   A. Financial Risk
   B. Market Risk
   C. Liquidity Risk
   D. Interest Rate Risk
   E. Credit Risk
   
   Answer & Explanation

   B. Market Risk
   Explanation:
   Market Risk is the most prominent for banks present in investment Banking.
   
   
6. ________ is the potential that a bank borrower/counter party fails to meet obligations on agreed terms.
   A. Financial Risk
   B. Market Risk
   C. Liquidity Risk
   D. Interest Rate Risk
   E. Credit Risk
   
   Answer & Explanation

   E. Credit Risk
   Explanation:
   Credit Risk is the potential that a bank borrower/counter party fails to meet obligations on agreed terms.
   
   
7. ______ is the type of risk arises due to fluctuation in interest rate
   A. Financial Risk
   B. Market Risk
   C. Liquidity Risk
   D. Interest Rate Risk
   E. Credit Risk
   
   Answer & Explanation

   D. Interest Rate Risk
   Explanation:
   Interest Rate Risk is the type of risk arises due to fluctuation in interest rate
   
   
8. _______ is the risk that a bank may suffer loss as a result of adverse exchange rate movement.
   A. Financial Risk
   B. Foreign Exchange Risk
   C. Liquidity Risk
   D. Interest Rate Risk
   E. Capital Risk
   
   Answer & Explanation

   B. Foreign Exchange Risk
   Explanation:
   Foreign Exchange Risk is the risk that a bank may suffer loss as a result of adverse exchange rate movement.
   
   
9. ______ arises where the capital comes under risk partially or the whole in some cases.
   A. Financial Risk
   B. Foreign Exchange Risk
   C. Liquidity Risk
   D. Interest Rate Risk
   E. Capital Risk
   
   Answer & Explanation

   E. Capital Risk
   Explanation:
   Capital Risk arises where the capital comes under risk partially or the whole in some cases.
   
   
10. Which of the following arises due to failure of day to day activities, system or people?
    A. Financial Risk
    B. Foreign Exchange Risk
    C. Liquidity Risk
    D. Interest Rate Risk
    E. Operational Risk
    
    Answer & Explanation

    E. Operational Risk
    Explanation:
    Operational Risk arises due to failure of day to day activities, system or people.