Current Affairs Questions
Banking & Finance:
Cess
Consider the following statements with reference to Cess:
- A cess is a form of tax usually imposed additionally when the state or the central government looks to raise funds for specific purposes.
- If the cess collected in a particular year goes unspent, it may be allocated for other purposes.
Choose the correct answer from the codes given below:
A
Only 1
B
Both 1 and 2
C
Only 2
D
Neither 1 nor 2
Countercyclical Capital Buffer
Consider the following statements with reference to the Countercyclical Capital Buffer (CCyB):
- The countercyclical capital buffer is intended to protect the banking sector against losses that could be caused by cyclical systemic risks increasing in the economy.
- Banks can use the capital buffers they have built up during the growth phase of the financial cycle to cover losses that may arise during periods of stress and to continue supplying credit to the real economy.
- The rule was first introduced in Basel III as an extension of another buffer (called the capital conservation buffer).
Choose the correct answer from the codes given below:
A
Only 3
B
1 and 2
C
2 and 3
D
1, 2 and 3
Blue Chip Stocks
Consider the following statements with reference to the Blue Chip Stocks:
- Blue chip stocks are shares of very large and well-recognised companies with a long history of sound financial performance.
- These stocks generally cost high, as they have good reputation and are often market leaders in their respective industries.
Choose the correct answer from the codes given below:
A
Only 1
B
Only 2
C
Both 1 and 2
D
Neither 1 nor 2
Repo Rate
Consider the following statements:
- Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
- In Overnight Repo, banks sell securities to the RBI for money, and repurchase those the following day, thus, returning the money to the central bank.
Which of the statement’s given above is/are correct?
A
Only 1
B
Only 2
C
Both 1 and 2
D
Neither 1 nor 2
Merchant Discount Rate
With reference to the Merchant Discount Rate (MDR), consider the following statements:
- MDR is a fee charged from a merchant by a bank for accepting payments from customers through credit and debit cards in their establishments.
- MDR compensates the card issuing bank, the lender which puts the PoS terminal and payment gateways such as Mastercard or Visa for their services.
- MDR charges are usually shared in pre-agreed proportion between the bank and a merchant and is expressed in percentage of transaction amount.
Choose the correct answer from the codes given below:
A
1 and 2
B
2 and 3
C
1 and 3
D
1, 2 and 3
Showing 1-5 of 5 items.
Cess
Consider the following statements with reference to Cess:
- A cess is a form of tax usually imposed additionally when the state or the central government looks to raise funds for specific purposes.
- If the cess collected in a particular year goes unspent, it may be allocated for other purposes.
Choose the correct answer from the codes given below:
| A |
Only 1
|
|
| B |
Both 1 and 2
|
|
| C |
Only 2
|
|
| D |
Neither 1 nor 2
|
|
Countercyclical Capital Buffer
Consider the following statements with reference to the Countercyclical Capital Buffer (CCyB):
- The countercyclical capital buffer is intended to protect the banking sector against losses that could be caused by cyclical systemic risks increasing in the economy.
- Banks can use the capital buffers they have built up during the growth phase of the financial cycle to cover losses that may arise during periods of stress and to continue supplying credit to the real economy.
- The rule was first introduced in Basel III as an extension of another buffer (called the capital conservation buffer).
Choose the correct answer from the codes given below:
| A |
Only 3
|
|
| B |
1 and 2
|
|
| C |
2 and 3
|
|
| D |
1, 2 and 3
|
|
Blue Chip Stocks
Consider the following statements with reference to the Blue Chip Stocks:
- Blue chip stocks are shares of very large and well-recognised companies with a long history of sound financial performance.
- These stocks generally cost high, as they have good reputation and are often market leaders in their respective industries.
Choose the correct answer from the codes given below:
| A |
Only 1
|
|
| B |
Only 2
|
|
| C |
Both 1 and 2
|
|
| D |
Neither 1 nor 2
|
|
Repo Rate
Consider the following statements:
- Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
- In Overnight Repo, banks sell securities to the RBI for money, and repurchase those the following day, thus, returning the money to the central bank.
Which of the statement’s given above is/are correct?
| A |
Only 1
|
|
| B |
Only 2
|
|
| C |
Both 1 and 2
|
|
| D |
Neither 1 nor 2
|
|
Merchant Discount Rate
With reference to the Merchant Discount Rate (MDR), consider the following statements:
- MDR is a fee charged from a merchant by a bank for accepting payments from customers through credit and debit cards in their establishments.
- MDR compensates the card issuing bank, the lender which puts the PoS terminal and payment gateways such as Mastercard or Visa for their services.
- MDR charges are usually shared in pre-agreed proportion between the bank and a merchant and is expressed in percentage of transaction amount.
Choose the correct answer from the codes given below:
| A |
1 and 2
|
|
| B |
2 and 3
|
|
| C |
1 and 3
|
|
| D |
1, 2 and 3
|
|
Showing 1-5 of 5 items.
