Retail Wholesale International Banking Multiple Choice Questions
1. In which year CIBIL was incorporated?
- 2000
- 2001
- 2003
- 2005
Answer: 1
Established in 2000, TransUnion CIBIL Limited (formerly known as Credit Information Bureau (India) Limited) is India’s first Credit Information Company. It collects and maintains credit-related information of individuals and corporates, including loans and credit cards.
- Working capital
- Export credit
- Bill discounting
- Bank guarantee
Answer: 4
- Working Capital: The working capital finance is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.
- Export financing is a cash flow solution for exporters. Export Finance facilitates the commerce of goods internationally.
- Bill Discounting is a trade-related activity in which a company’s unpaid invoices which are due to be paid at a future date are sold to a financier
- A bank guarantee is a promise from a lending institution that ensures the bank will step up if a debtor can’t cover a debt.
- Wholesale Banking
- International Banking
- Retail Banking
- Investment Banking
Answer: 2
International banking is a type of banking that has presence across international borders. It is a financial entity that offers financial services like lending opportunities and payment accounts to foreign clients
- Bank Guarantee
- Working Capital
- Export Packing Credit
- Investment Credit
Answer: 3
‘Pre-shipment / Packing Credit’ means any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment / working capital expenses towards rendering of services on the basis of letter of credit opened in his favour or in favour of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods / services from India or any other evidence of an order for export from India having been placed on the exporter or some other person, unless lodgement of export orders or letter of credit with the bank has been waived.
- Exchange Earners’ Foreign Currency Account (EEFC)
- NOSTRO Account
- VOSTRO Account
- FFC
Answer: 1
Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. It is a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.
- Bancinsurance
- Bankassurance
- Bancassurance
- Bankinsurance
Answer: 3
Bancassurance means selling insurance through banks. Banks and insurance companies collaborate in a partnership, where the bank sells the partner insurance company’s products to its customers.
- Bonds
- Depository receipts
- Debentures
- Fixed Deposits
Answer: 2
A depository receipt (DR) is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. The depositary receipt gives investors the opportunity to hold shares in the equity of foreign countries and gives them an alternative to trading on an international market
- RBI
- Foreign Companies
- SEBI
- Foreign Institutional Investor (FII)
Answer: 4