Economy & Tax — Set 5
Abbreviations · अर्थव्यवस्था और कर · Questions 41–50 of 50
What does 'EPF' stand for in terms of employee benefits?
Correct Answer: B. Employees' Provident Fund
EPF stands for Employees' Provident Fund. It is a retirement benefit scheme for salaried employees, managed by the Employees' Provident Fund Organisation (EPFO). Both the employer and the employee contribute a fixed percentage of the salary to this fund.
What is the full form of 'RTGS' in banking transfers?
Correct Answer: A. Real Time Gross Settlement
RTGS stands for Real Time Gross Settlement. It is a system where the transfer of money takes place from one bank to another on a 'real time' and on a 'gross' basis. This is primarily used for high-value transactions that require immediate clearing.
What does 'NEFT' stand for in electronic banking?
Correct Answer: C. National Electronic Funds Transfer
NEFT stands for National Electronic Funds Transfer. It is a nationwide centralized payment system maintained by the Reserve Bank of India (RBI). Unlike RTGS, funds are transferred in hourly batches.
What is the full form of 'MCLR' in bank interest rates?
Correct Answer: D. Marginal Cost of funds based Lending Rate
MCLR stands for Marginal Cost of funds-based Lending Rate. It is the minimum interest rate below which a bank cannot lend money. This system was introduced by the RBI in 2016 to improve the transmission of policy rates into lending rates.
What does 'IMPS' stand for in mobile banking?
Correct Answer: B. Immediate Payment Service
IMPS stands for Immediate Payment Service. It is an instant interbank electronic fund transfer service through mobile phones in India. It is managed by the National Payments Corporation of India (NPCI) and is available 24/7.
What is the full form of 'CRR' in banking reserves?
Correct Answer: C. Cash Reserve Ratio
CRR stands for Cash Reserve Ratio. It is the percentage of a bank's total deposits that it is required to maintain with the central bank (RBI in India) in the form of liquid cash. It is a tool used by the central bank to regulate money supply.
What does 'SLR' stand for in monetary regulation?
Correct Answer: B. Statutory Liquidity Ratio
SLR stands for Statutory Liquidity Ratio. It is the minimum percentage of deposits that a commercial bank has to maintain in the form of liquid assets like gold or government securities. This is kept by the bank itself to ensure solvency.
What is the full form of 'KYC' in financial services?
Correct Answer: A. Know Your Customer
KYC stands for Know Your Customer. It is the process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship. it is mandatory for banking and investment services to prevent money laundering.
What does 'FEMA' stand for?
Correct Answer: D. Foreign Exchange Management Act
The correct answer is Foreign Exchange Management Act. FEMA stands for Foreign Exchange Management Act, enacted in 1999 replacing the earlier FERA (1973). FEMA facilitates external trade and payments and promotes the orderly development of the foreign exchange market in India. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
What is the full form of "CIBIL" in the context of Indian banking and credit?
Correct Answer: C. Credit Information Bureau (India) Limited
CIBIL stands for Credit Information Bureau (India) Limited. It is India's first credit information company, established in 2000. CIBIL collects and maintains credit records of individuals and commercial entities, generating credit scores (called CIBIL scores) that range from 300 to 900. A score above 750 is generally considered good by lenders. Banks and financial institutions use the CIBIL score to evaluate creditworthiness before approving loans or credit cards. It operates under the Credit Information Companies (Regulation) Act, 2005.