Banking Terms — Set 4
Abbreviations · बैंकिंग शब्द · Questions 31–40 of 60
What does 'FPO' stand for in share markets?
Correct Answer: C. Follow-on Public Offer
FPO stands for Follow-on Public Offer. It is an issuance of stock to investors by a company that is already listed on an exchange. Unlike an IPO, which is the first sale, an FPO is used to raise additional capital.
The abbreviation 'NBFC' stands for?
Correct Answer: D. Non-Banking Financial Company
NBFC stands for Non-Banking Financial Company. It is a financial institution that does not have a full banking license but provides banking-type services like loans and credit. NBFCs are not allowed to accept demand deposits from the public.
What does 'NSC' stand for in small savings schemes?
Correct Answer: A. National Savings Certificate
NSC stands for National Savings Certificate. It is a fixed income investment scheme that can be opened at any post office in India. It is primarily used for small savings and income tax benefits under Section 80C.
In credit analysis, 'CIBIL' refers to?
Correct Answer: A. Credit Information Bureau (India) Limited
CIBIL stands for Credit Information Bureau (India) Limited (now TransUnion CIBIL). It is India's leading credit information company that maintains records of payments pertaining to loans and credit cards. A CIBIL score helps lenders assess the creditworthiness of individuals.
What is the full form of 'ECB' in external borrowing?
Correct Answer: A. External Commercial Borrowing
ECB stands for External Commercial Borrowing. It refers to loans in India raised from non-resident lenders (often in foreign currency) by eligible Indian entities. ECBs are regulated by the central bank to manage external debt and related risks.
What does 'GST' stand for in taxation?
Correct Answer: D. Goods and Services Tax
GST stands for Goods and Services Tax. It is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multi-stage, destination-based tax that replaced many existing indirect taxes.
In banking operations, 'KYC' is mandatory to prevent?
Correct Answer: B. Money laundering
KYC (Know Your Customer) is primarily used to prevent money laundering and terrorist financing. By verifying the identity of clients, banks can monitor suspicious activities. It is a standard global practice in financial regulation.
What does 'EFT' stand for in electronic banking?
Correct Answer: A. Electronic Funds Transfer
EFT stands for Electronic Funds Transfer. It is the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions. Examples include wire transfers and direct deposits.
What does 'RBI' stand for in the Indian banking system?
Correct Answer: D. Reserve Bank of India
RBI stands for the Reserve Bank of India. It is India's central bank and regulatory body responsible for the issue and supply of the Indian rupee. Established in 1935, it controls the monetary policy of the country.
What is the full form of 'FII'?
Correct Answer: D. Foreign Institutional Investor
FII stands for Foreign Institutional Investor. It refers to an investment fund or an asset that is from outside the country where the investment is being made. FIIs play a major role in determining the direction of the stock market.