1. If a person does not have any of the proofs for completing KYC, then he can get his bank account open as a ______.

A. Small account B. BSBDA account C. Recurring deposit account D. Nostro account E. Vostro account

2. Which among the following is false regarding reverse repo rate?

A. During high levels of inflation, the RBI decreases the reverse repo B. Reverse repo rate is lower than the repo rate C. It is used as a measure to manage cash flow D. It involves the transfer of money from one account to another E. It is the rate at which the RBI borrows from the commercial banks

3. “123456789” is the MICR (Magnetic Ink Character Recognition) code in a cheque. What does ‘456’ represents in the given MICR code?

A. City Code B. Bank Code C. Branch Code D. Account holder code E. Country Code

4. What is the minimum investment amount for post office time deposit?

A. 100 B. 200 C. 300 D. 400 E. 500

5. Which among the following is associated only with the concept of current account & capital accounts?

A. Balance of trade B. Balance of revenue C. Balance of access D. Balance of funds E. None of the above

Answers and Explanations
1. Answer - Option A
Explanation -
If a person does not have any of the proofs, then also he can get his account open as a ‘small account’. Balance in a small account at any point of time should not exceed Rs.50,000.
Small accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account.
When someone transfers his bank account from one branch to another branch of the same bank, there is no need for going to KYC procedure again. However, if address is changed then the KYC procedure needs to be done again.
2. Answer - Option A
Explanation -
A Reverse Repo Rate is a rate that RBI offers to banks when they deposit their surplus cash with RBI for shorter periods.
In other words, it is the rate at which the RBI borrows from the commercial banks. During high levels of inflation in the economy, the RBI increases the reverse repo. It encourages the banks to park more funds with the RBI to earn higher returns on idle cash.
As a result, every excess rupee is put to use in the banking system. Banks are left with lesser funds to extend loans, curbing the purchasing power of individuals.
3. Answer - Option B
Explanation -
MICR code is a code printed on cheques using MICR (Magnetic Ink Character Recognition) technology. This enables identification of the cheques and which in turns means faster processing. An MICR code is a 9-digit code that uniquely identifies the bank and branch participating in an Electronic Clearing System (ECS). It comprises of 3 parts:
The first three digits represent the city (City Code). They are aligned with the PIN code we use for postal addresses in India. The next 3 digits represent the bank (Bank Code). The last 3 digits represent the branch (Branch Code).
4. Answer - Option B
Explanation -
The Post Office Time Deposits are a saving scheme offered by the Indian Postal Service on which a fixed interest is paid. The minimum investment for post office time deposits is Rs 200 and there is no cap.
5. Answer - Option E
Explanation -
Balance of Payments is defined as the total volume of transactions undertaken by a country in the international account over a financial year. It is mainly categorized under two heads and they are current account and capital account.
It summarizes all transactions that a country’s individuals, companies and government bodies complete with individuals, companies and government bodies outside the country. These transactions consist of imports and exports of goods, services and capital, as well as transfer payments such as foreign aid and remittances.

1. Ancient holy city in Maharashtra, Nashik is situated on the banks of river _________.

A. Yamuna B. Godavari C. Ganga D. Chambal E. Mahanadi

2. Tarapur nuclear power station was the first commercial nuclear power station built in India. Where is the Tarapur power station situated?

A. Maharashtra B. Madya Pradesh C. Rajasthan D. Gujarat E. West Bengal

3. Which among the following is a national park in Gujarat?

A. Blackbuck National Park B. Campbell Bay National Park C. Dudhwa National Park D. Eravikulam National Park E. Gangotri National Park

4. Which is the currency of Tajikistan?

A. Peso B. Kuna C. Koruna D. Rial E. Somoni

5. International Day Against Nuclear Tests is observed every year on_________.

A. August, 10 B. September, 30 C. September, 18 D. September, 15 E. August, 29

Answers and Explanations
1. Answer - Option B
Explanation -
Godavari
2. Answer - Option A
Explanation -
Tarapur Atomic Power Station (T.A.P.S.) is located in Tarapur, Maharashtra. It was the first commercial nuclear power station built in India. Tarapur Atomic Power Station was constructed initially with two boiling water reactor (BWR) units under the 1963 123 Agreement between India, the United States, and the International Atomic Energy Agency (IAEA).
3. Answer - Option A
Explanation -
Blackbuck National Park
4. Answer - Option E
Explanation -
Somoni
5. Answer - Option E
Explanation -
International Day Against Nuclear Tests is observed every year on August, 29.
In 2009, United Nations General Assembly declared 29 August the International Day against Nuclear Tests. It calls for increasing awareness and education “about the effects of nuclear weapon test explosions or any other nuclear explosions and the need for their cessation as one of the means of achieving the goal of a nuclear-weapon-free world.

1. Which is the only country to which remittances can be sent using NEFT?

A. Nepal B. Canada C. United States D. Sri Lanka E. Mauritius

2. Which among the following is true regarding the Bankers’ Cheque?

A. Bankers’ Cheques are issued by a bank to the individual. B. The fund is withdrawn directly from the account of the bank. C. The fund is payable within the same city in which it has been issued. D. All (A), (B), (C) E. Only (A) and (B)

3. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval / authorisation to Reserve Bank of India under ________

A. Payment and Settlement Systems (PSS) Act 2007. B. Foreign Exchange Management Act, 1999 C. Banking Regulation Act, 1949 D. SARFAESI Act, 2002 E. None of the Above

4. Name the First Bank to introduce Mutual Fund.

A. ICICI Bank B. SBI C. Central Bank of India D. Bank of Baroda E. None of these

5. NEER and REER are the terms associated with which of the following?

A. Treasury Bill Market B. Basel norms C. Foreign Exchange Market D. Inter-Bank Call Money Market E. None of these

Answers and Explanations
1. Answer - Option A
Explanation -
The money can be transferred using NEFT to Nepal under the Indo-Nepal Remittance Facility Scheme. It is not possible to send money abroad to any other country using NEFT. The maximum amount per transaction is limited to ₹ 50,000/- for cash-based remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
2. Answer - Option D
Explanation -
Bankers’ Cheque is issued by a bank to the individual for payments within the same city in which it has been issued. The fund is withdrawn directly from the accounts of the bank. The validity of this instrument is three months from the date of issue.
3. Answer - Option A
Explanation -
To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval / authorisation to Reserve Bank of India under Payment and Settlement Systems (PSS) Act 2007. Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units.
4. Answer - Option B
Explanation -
The mutual fund industry in India originally began in 1963 with the Unit Trust of India (UTI) as a Government of India and the Reserve Bank of India initiative. Launched in 1987, SBI Mutual Fund became the first non-UTI mutual fund in India.
5. Answer - Option C
Explanation -
Nominal Effective Exchange Rate (NEER) is a multilateral rate representing the price of a representative basket of foreign currencies, each weighted by its importance to the domestic country in international trade (the average of export and import shares is taken as an indicator of this). The Real Effective Exchange Rate (REER) is calculated as the weighted average of the real exchange rates of all its trade partners, the weights being the shares of the respective countries in its foreign trade. It is interpreted as the number of domestic goods required to purchase one unit of a given basket of foreign goods.