MCQ on Banking: In Indian banking, understanding the large number of acronyms and abbreviations is crucial, especially for students preparing for competitive exams. Understanding these terms not only makes it easier to understand the banking system, but it also makes it easier to prepare for various competitive assessments.
MCQ on Banking
1. What does ‘IFSC’ stand for in banking?
A) Indian Financial Services Code
B) Indian Fiscal System Code
C) Indian Financial System Code
D) International Financial Service Code
Answer: C) Indian Financial System Code
2. ‘ATM’ in banking stands for:
A) Automated Teller Machine
B) Advanced Transaction Mechanism
C) Automated Transaction Module
D) Advanced Teller Machine
Answer: A) Automated Teller Machine
3. What does ‘RTGS’ refer to in banking terminology?
A) Real-Time Gross Settlement
B) Real-Time Government System
C) Round-The-Globe Settlement
D) Rapid Transaction Gross System
Answer: A) Real-Time Gross Settlement
4. The term ‘NPA’ in banking represents:
A) Non-Performing Asset
B) Net Profit Analysis
C) Non-Personal Account
D) Net Payment Assessment
Answer: A) Non-Performing Asset
5. What does ‘NEFT’ stand for in the banking domain?
A) National Electronic Funds Transaction
B) Negotiable Electronic Funds Transfer
C) National Electronic Funds Transfer
D) Non-Exempted Financial Transaction
Answer: C) National Electronic Funds Transfer
6. The abbreviation ‘CBS’ in banking refers to:
A) Core Banking System
B) Centralized Banking System
C) Comprehensive Banking Solution
D) Customer Based Services
Answer: A) Core Banking System
7. ‘KYC’ in the banking context stands for:
A) Know Your Customer
B) Keep Your Credentials
C) Known Yearly Customers
D) Key Yield Components
Answer: A) Know Your Customer
8. What does ‘CRR’ denote in banking terminology?
A) Centralized Reserve Ratio
B) Cash Reserve Ratio
C) Credit Rating Requirement
D) Core Regulatory Reserve
Answer: B) Cash Reserve Ratio
9. The term ‘FICCI’ in Indian banking stands for:
A) Federation of Indian Corporate & Commercial Institutions
B) Federation of Indian Chambers of Commerce and Industry
C) Financial Institutions Council of Corporate India
D) Forum for Indian Commercial and Corporate Institutions
Answer: B) Federation of Indian Chambers of Commerce and Industry
10. What does ‘UPI’ represent in the Indian banking sector?
A) Unified Payment Interface
B) Universal Payment Instruction
C) Unified Pension Investment
D) Universal Payment Interface
Answer: A) Unified Payment Interface