Financial Services Institutions Bureau (FSIB) Quiz

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Which of the following statements is true about Line of Credit?

It is a preset amount of money that a bank has agreed to lend (correct)

It is issued by one bank to another

The company will have to pay interest on the amount for which line of credit has been issued

It is issued mainly in case of international transactions

Which bank is not in the list of 'Domestic Systemically Important Banks'?

ICICI Bank

HDFC Bank

State Bank of India (SBI)

Axis Bank (correct)

Which statements are true regarding 'Letter of Credit'?

It is a form of bank guarantee (correct)

It is an assurance that a buyer’s payment to a seller will be received on time

It is a letter issued from a bank that the bank has agreed to lend

It is an agreement between two companies for future business dealings

What is the purpose of RBI's 'Payments Infrastructure Development Fund'?

<p>Supporting the growth of digital payments by enhancing payment infrastructure</p> Signup and view all the answers

What does Capital Adequacy Ratio (CAR) represent for banks?

<p>The amount banks have to maintain in the form of their own funds to cover losses due to accountholders' defaults</p> Signup and view all the answers

Financial Services Institutions Bureau (FSIB) Quiz

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Questions and Answers

Which of the following statements is true about Line of Credit?

Which bank is not in the list of 'Domestic Systemically Important Banks'?

Which statements are true regarding 'Letter of Credit'?

What is the purpose of RBI's 'Payments Infrastructure Development Fund'?

What does Capital Adequacy Ratio (CAR) represent for banks?

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