Banking Awareness Quiz: In this generation, everything is going on money because of that banking is spread all over the world. Due to this, the individual should possess certain knowledge of banking which is useful for them throughout their life. And this knowledge can be provided by “Banking Awareness Quiz”.So, make a step forward to take the Banking Awareness Online Test from this page. Also, get the best Banking Awareness GK Questions And Answers.
Banking Awareness Quiz Details
Banking Awareness quiz consists of 25 questions which he/she should answer. The time given to complete the quiz is 30 minutes that means the individual should complete the whole quiz on or before the time allotted. The type of this quiz is MCQ i.e., Multiple Choice Question.
| Quiz Name | Banking Awareness |
| Category | GK |
| Number of Questions | 20 |
| Time | 30 Minutes |
| Exam Type | MCQ (Multiple Choice Questions) |
Banking Awareness Questions and Answers
1. What is the term used to describe the interest rate that banks charge each other for short-term loans?
| Join Telegram |  |
| Join Whatsapp Groups |  |
a) Prime rate
b) LIBOR
c) Fed Funds rate
d) Discount rate
Answer: c) Fed Funds rate
Explanation: The Fed Funds rate is the interest rate that banks charge each other for short-term loans.
2. What is the term used to describe a type of account that earns interest and allows for limited withdrawals each month?
a) Checking account
b) Savings account
c) Money market account
d) Certificate of deposit
Answer: c) Money market account
Explanation: A money market account is a type of account that typically earns higher interest than a traditional savings account but also limits the number of withdrawals that can be made each month.
3. What is the term used to describe a type of account that allows customers to deposit and withdraw funds as needed and typically does not earn interest?
a) Checking account
b) Savings account
c) Money market account
d) Certificate of deposit
Answer: a) Checking account
Explanation: A checking account is a type of account that allows customers to deposit and withdraw funds as needed and typically does not earn interest.
4. What is the term used to describe the difference between the interest rate that a bank charges borrowers and the interest rate that it pays to depositors?
a) Margin
b) Spread
c) Discount
d) Premium
Answer: b) Spread
Explanation: The spread is the difference between the interest rate that a bank charges borrowers and the interest rate that it pays to depositors.
5. What is the term used to describe a type of loan that is secured by collateral such as a house or car?
a) Personal loan
b) Unsecured loan
c) Mortgage loan
d) Student loan
Answer: c) Mortgage loan
Explanation: A mortgage loan is a type of loan that is secured by collateral such as a house or car.
6. What is the term used to describe the maximum amount of money that a borrower can borrow from a lender?
a) Interest rate
b) Principal
c) Collateral
d) Credit limit
Answer: d) Credit limit
Explanation: The credit limit is the maximum amount of money that a borrower can borrow from a lender.
7. What is the term used to describe a financial institution that accepts deposits from customers and uses those funds to make loans to other customers?
a) Commercial bank
b) Investment bank
c) Credit union
d) Mutual fund
Answer: a) Commercial bank
Explanation: A commercial bank is a financial institution that accepts deposits from customers and uses those funds to make loans to other customers.
8. What is the term used to describe the amount of money that a borrower owes to a lender, not including interest?
a) Principal
b) Interest
c) Payment
d) Collateral
Answer: a) Principal
Explanation: The principal is the amount of money that a borrower owes to a lender, not including interest.
9. What is the term used to describe a type of account that requires a minimum balance and typically earns higher interest than a checking account?
a) Checking account
b) Savings account
c) Money market account
d) Certificate of deposit
Answer: b) Savings account
Explanation: A savings account is a type of account that requires a minimum balance and typically earns higher interest than a checking account.
10. What is the term used to describe a financial product that combines features of both a checking account and a savings account?
a) Money market account
b) Certificate of deposit
c) Credit card
d) High-yield account
Answer: a) Money market account
Explanation: A money market account is a financial product that combines features of both a checking account and a savings account, offering higher interest rates while still allowing limited check-writing and debit card access.
11. What is the term used to describe a loan that is backed by collateral, such as a home or car?
a) Unsecured loan
b) Secured loan
c) Personal loan
d) Line of credit
Answer: b) Secured loan
Explanation: A secured loan is a loan that is backed by collateral, such as a home or car. If the borrower is unable to repay the loan, the lender can seize the collateral to recoup their losses.
12. What is the term used to describe the interest rate that a bank charges to its most creditworthy customers?
a) Prime rate
b) Variable rate
c) Fixed rate
d) APR
Answer: a) Prime rate
Explanation: The prime rate is the interest rate that a bank charges to its most creditworthy customers, such as large corporations and government agencies.
13. What is the term used to describe a type of account that is designed for retirement savings and offers tax advantages?
a) Checking account
b) Savings account
c) Money market account
d) Individual Retirement Account (IRA)
Answer: d) Individual Retirement Account (IRA)
Explanation: An Individual Retirement Account (IRA) is a type of account that is designed for retirement savings and offers tax advantages.
14. What is the term used to describe the process of moving money from one account to another?
a) Deposit
b) Withdrawal
c) Transfer
d) Balance inquiry
Answer: c) Transfer
Explanation: A transfer is the process of moving money from one account to another.
15. What is the term used to describe a type of account that is held by two or more people and requires the signature of all parties to withdraw funds?
a) Joint account
b) Individual account
c) Trust account
d) Custodial account
Answer: a) Joint account
Explanation: A joint account is a type of account that is held by two or more people and requires the signature of all parties to withdraw funds.
16. What is the term used to describe the amount of money that is available for withdrawal from a bank account?
a) Balance
b) Credit limit
c) Available credit
d) Outstanding balance
Answer: c) Available credit
Explanation: Available credit refers to the amount of money that is available for withdrawal from a bank account.
17. What is the term used to describe a type of loan that is intended to be repaid in full with a single payment at the end of the loan term?
a) Installment loan
b) Line of credit
c) Balloon loan
d) Payday loan
Answer: c) Balloon loan
Explanation: A balloon loan is a type of loan that is intended to be repaid in full with a single payment at the end of the loan term.
18. What is the term used to describe the amount of money that a borrower owes to a lender?
a) Interest rate
b) Principal
c) Payment
d) Balance
Answer: d) Balance
Explanation: The balance is the amount of money that a borrower owes to a lender.
19. What is the term used to describe the process of using borrowed funds to invest in the stock market?
a) Leveraging
b) Diversification
c) Hedging
d) Short selling
Answer: a) Leveraging
Explanation: Leveraging is the process of using borrowed funds to invest in the stock market.
20. What is the term used to describe a financial instrument that represents ownership in a company?
a) Bond
b) Mutual fund
c) Stock
d) Certificate of deposit
Answer: c) Stock
Explanation: A stock is a financial instrument that represents ownership in a company.
21. What is the term used to describe a fee charged by a bank for the use of a credit card?
a) Interest rate
b) Annual fee
c) Balance transfer fee
d) Cash advance fee
Answer: b) Annual fee
Explanation: An annual fee is a fee charged by a bank for the use of a credit card.
22. What is the term used to describe a loan that is backed by collateral?
a) Secured loan
b) Unsecured loan
c) Personal loan
d) Payday loan
Answer: a) Secured loan
Explanation: A secured loan is a loan that is backed by collateral, such as a car or a house.
23. What is the term used to describe the process of moving funds from one bank account to another electronically?
a) Wire transfer
b) Check deposit
c) ATM withdrawal
d) Bill payment
Answer: a) Wire transfer
Explanation: A wire transfer is the process of moving funds from one bank account to another electronically.
24. What is the term used to describe the maximum amount of credit that a borrower can access on a credit card?
a) Credit limit
b) Balance
c) Interest rate
d) Payment due date
Answer: a) Credit limit
Explanation: The credit limit is the maximum amount of credit that a borrower can access on a credit card.
25. What is the term used to describe the process of spreading investments across multiple asset classes to reduce risk?
a) Diversification
b) Leverage
c) Hedging
d) Short selling
Answer: a) Diversification
Explanation: Diversification is the process of spreading investments across multiple asset classes to reduce risk.
Different competitive examinations are now giving major importance to Banking Awareness in order to look the knowledge of the individual. We have covered all phases in just by a single quiz provided by this page such as banking awareness notes, latest banking awareness questions, banking awareness pdf, in a single Banking Awareness Quiz provided in this page.
So before going through that competitive exams the individual are usually takes a step in order to build their confidence level for cracking the toughest exams so they go through the previous question papers, searching websites for learning , but Do you ever think of a quiz which is a mantra for getting success in the competitive field or learning a new thing?
Now here we are providing certain Quiz on Banking Awareness which is very helpful for the individual to crack their any kind of exams effortlessly and easily along with a necessary explanation. Let’s have a glance look at it.
- After completion, we can have result along with related and brief explanation which can boost your level of thinking and confidence.
- Regardless of any restrictions such as age, gender, the domain you can go through this quiz.
About Banking Awareness GK Questions
Banking awareness is nothing but keeping update with current bank schemes and strategies. We have costumer awareness on banking as well as bank employee awareness on banking.
Streams Where Banking Awareness is Used
Not depending on a particular stream Banking awareness is useful for the educational purpose, banks, government policies. As we can see that banks are located throughout the world and have several functioning of their own such as depositing money, crediting, debiting money, withdrawals and loaning schemes. As everything which is related to money or property now completely depends on banks only so one should need to have knowledge of banking regardless of age, gender. On this banking awareness, we have several competitional exams such as Bank Exams, IBPS, SBI, RBI, PO Clerk etc. So to gain good marks and have better knowledge of it we are providing “Banking Awareness Quiz “by which an individual can crack their competitive exams easily by low efforts.
Benefits of Practicing Banking Awareness Quiz
There are the bunch of benefits by practicing Banking Awareness Quiz. There are:
- This quiz consists of 25 questions which cover all phases of learning and cracking.
- It has the certain time limit which makes individual to solve or choose correct answer in given time.
- The quiz has the status phase which shows the time and the answers to be completed.
- Here the result part which gives points, marks along with grades such as A, B, C, D.
- It has explanation part which gives the brief explanation about every question he/ she hasn’t / has answered.
- This is a tricky quiz and best means need the certain level of understanding, thinking and answering.
- It is just like a mock test or a competitive test which assure that he/ she is boosting their skill or not.
- At last, it gives the correct answer with the explanation just like a teacher to a student.
These are many benefits that he/she going to get by cracking this quiz.
Banking Awareness Quiz Results
- As mentioned earlier the result is placed after the submission of the Banking Awareness Quiz
- The results show how many questions the individual submitted. As well as marks allotted to the answers and points along with grades of the individuals just like any competitive examinations.
- After submitting of the quiz along with the result it also shows the correct answer for every question along with an apt explanation.
- So, by this quiz, anyone can learn, gain knowledge and can easily get success in their competitive exams.
For the daily dose of knowledge, or to crack any of the competitive exams easily visit our website freshersnow.com regularly.
Practice More GK Questions and Answers