Banking Awareness Quiz : Set – 45
Q.1) which of the following account is not earn interest for the money deposit in the account?
a) Saving account
b) Current account
c) Recurring Deposit account
d) EEFC account
e) Both b and d
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Q.2) what is the minimum and maximum tenures period for fixed account?
a) 7 days to 1 year
b) 7 days to 5 years
c) 7 days to 10 years
d) 7 days to 180days
e) None of these
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Q.3) The Interest rate of saving account deposit is fixed by whom?
a) RBI
b) Financial minister
c) Banks
d) IBA
e) None of these
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Ans: c
On saving account an individual earns some rate of interest, these rate of interest varies from bank to bank, earlier this rate of interest in fixed by RBI but now RBI has given power to banks to decide their own rate of interest on saving account .This rate of interest is usually 4% but some private banks offering 6% rate of interest too.
Q.4) which of the following account is freely repatriable?
a) NRE
b) NRO
c) FCNR (B)
d) EEFC
e) Both a & c
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Ans: e
The Non Resident External Account (NRE Account) is a Savings / Current. Recurring Deposit / Fixed Deposit bank account held in India, in Indian Rupees. Such accounts can be opened only by the NRI. Balances held in NRE account are fully repatriable. With effect from March 1, 2014, interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.
FCNR (B) stands for Foreign Currency Non –Resident (Bank) account
This account is opened by NRIs In this account a person invest a fixed sum of money for a period not less than one year and max five years in any foreign currency in FCNR account . After the completion of fixed period principal and interest is paid in foreign currency in which he had deposited .In this way NRI are save from foreign exchange rate risk. Account can be in any freely convertible currency.
Q.5) which of the following account denominated only in Indian rupees?
a) NRE
b) NRO
c) FCNR
d) Both a & b
e) None of these
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Ans: d
Both the accounts should be denominated in Indian Rupees while FCNR should denominate in foreign currency such as Pound, US dollar, Yen, and Australian dollar).
Q.6) which of the following account can be held only in the form of current account?
a) NRE
b) NRO
c) EEFC
d) FCNR
e) SNRR
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Ans: c
Exchange earners’ foreign currency account (EEFC) is an account maintained in foreign currency with an authorised dealer i.e. a bank dealing in foreign exchange.
An EEFC account can be held only in the form of a current account. Cheque facility is available for operation of the EEFC account. No interest is payable on EEFC accounts.
Q.7) Abbreviation of SNRR account?
a) Socio-National Resident Rupee
b) Special Non Resident Rupee
c) Special Non Rupee Resident
d) Socio-Non Resident Rupee
e) None of these
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Ans: b
A bank account scheme for non-residents having a business interest in India has been permitted, namely the non-interest bearing Special Non-Resident Rupee Account (SNRR account). SNRR accounts may be used for effecting bona fide transactions in Indian Rupees. The debits and credits to the SNRR account must be specific or incidental to the business proposed to be undertaken by the non-resident account holder in India. Further, the tenure of the SNRR account must be concurrent with the tenure of the contract or period of business operation of the non-resident account holder, and in any event, must not exceed seven years.
Q.8) which of the following account can be held only in the form of Term deposit?
a) NRE
b) NRO
c) EEFC
d) FCNR
e) SNRR
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Ans: d
The Maturity period of term deposit range from 1 to 5 years. FCNR account was introduced in 15th may,1993.
Q.9) which of the following year was NRE account introduced by RBI?
a) 1955
b) 1958
c) 1967
d) 1970
e) 1975
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Q.10) which of the following year was FCNR(B) account introduced by RBI?
a) 1972
b) 1983
c) 1990
d) 1991
e) 1993
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