Banking Awareness Quiz – Set 149

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 standard document that is commonly used to govern over-the-counter derivatives transactions?
   A. CSA Agreement
   B. ISDA Agreement
   C. GMRA Agreement
   D. All of these
   E. None of these
   
   Answer & Explanation

   B. ISDA Agreement
   Explanation:
   It is a document agreed between two parties that sets out standard terms that apply to all the transactions entered into between those parties.
   
   
2. Which of the following is a legal document which regulates credit support (collateral) for derivative transactions?
   A. CSA Agreement
   B. ISDA Agreement
   C. GMRA Agreement
   D. Commission Sharing Agreement
   E. None of these
   
   Answer & Explanation

   A. CSA Agreement
   Explanation:
   CSA Agreement is a legal document which regulates credit support (collateral) for derivative transactions
   
   
3. The headquarters of ISDA is _______
   A. Rome
   B. Geneva
   C. New York
   D. Washington D.C
   E. None of these
   
   Answer & Explanation

   C. New York
   Explanation:
   The headquarters of ISDA is New York.
   
   
4. ISDA stands for _____
   A. Integrated Swaps and Distribution Association
   B. Integrated Swaps and Derivatives Association
   C. Internal Swaps and Distribution Association
   D. International Swaps and Derivatives Association
   E. Internal Swaps and Derivatives Association
   
   Answer & Explanation

   D. International Swaps and Derivatives Association
   Explanation:
   ISDA stands for International Swaps and Derivatives Association.
   
   
5. How many members are there in ISDC?
   A. 720
   B. 820
   C. 620
   D. 520
   E. None of these
   
   Answer & Explanation

   B. 820
   Explanation:
   ISDA has more than 820 members in 57 countries.
   
   
6. GMRA stands for _____
   A. Global Master Revenue Agreement
   B. Global Minted Repurchase Agreement
   C. Global Minted Revenue Agreement
   D. Global Master Repurchase Agreement
   E. None of these
   
   Answer & Explanation

   D. Global Master Repurchase Agreement
   Explanation:
   GMRA – Global Master Repurchase Agreement
   
   
7. CSA stands for ______
   A. Credit Support Agreement
   B. Core Support Annex
   C. Credit Support Annex
   D. Core Support Agreement
   E. None of these
   
   Answer & Explanation

   C. Credit Support Annex
   Explanation:
   CSA – Credit Support Annex.
   
   
8. Which is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a loan default (by the debtor) or other credit event.?
   A. CSA
   B. CDS
   C. ISDA
   D. GMRA
   E. All of these
   
   Answer & Explanation

   B. CDS
   Explanation:
   A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer (usually the creditor of the reference loan) in the event of a loan default (by the debtor) or other credit event.
   
   
9. ________ is an agreement to exchange one currency with another, at a specific rate of exchange.
   A. CSA
   B. CDS
   C. ISDA
   D. GMRA
   E. Currency Swap
   
   Answer & Explanation

   E. Currency Swap
   Explanation:
   Currency Swap is an agreement to exchange one currency with another, at a specific rate of exchange.
   
   
10. Exchange Earners Foreign Currency (EEFC) Account provides ________
    A. Current Account
    B. SB Account
    C. Term Deposits
    D. All of these
    E. None of these
    
    Answer & Explanation

    A. Current Account
    Explanation:
    Exchange Earners Foreign Currency (EEFC) Account provides Current Account only.