1. Which of the following is the correct meaning of “NPA” in banking?
a) Non-Performing Asset
b) New Payment Arrangement
c) National Payment Authority
d) Net Performing Account
Answer: Non-Performing Asset
2. Choose the correct synonym of “Fiduciary”:
a) Secret
b) Trust-based
c) Risky
d) Legal
Answer: Trust-based
3. “The bank ______ the loan proposal due to insufficient collateral.” Choose the correct verb:
a) sanctioned
b) rejected
c) forwarded
d) appreciated
Answer: rejected
4. What does “KYC” stand for?
a) Know Your Customer
b) Keep Your Credit
c) Key Yield Control
d) Know Your Currency
Answer: Know Your Customer
5. Which sentence is grammatically correct in a formal banking email?
a) “Send me the details quick.”
b) “Please furnish the documents at your earliest convenience.”
c) “I want the papers soon.”
d) “Give me the info ASAP.”
Answer: “Please furnish the documents at your earliest convenience.”
6. The phrase “run on the bank” means:
a) A bank’s annual race event
b) A situation where many customers withdraw deposits simultaneously
c) A new branch opening
d) A banking software update
Answer: A situation where many customers withdraw deposits simultaneously
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7. Choose the appropriate word: “The interest is compounded ______.”
a) yearly
b) annual
c) annum
d) annually
Answer: annually
8. “The auditor found several _________ in the financial statement.” Which word fits best?
a) discrepancy
b) discrepancies
c) discrepant
d) discrepantly
Answer: discrepancies
9. In banking, “CRR” refers to:
a) Credit Risk Ratio
b) Cash Reserve Ratio
c) Currency Retention Rate
d) Customer Relation Report
Answer: Cash Reserve Ratio
10. Which of these is a polite closing for a banking formal letter?
a) Yours fast
b) Yours faithfully
c) Bye
d) Cheers
Answer: Yours faithfully
