<<123456789101112131415161718192021>> 1. What is the primary role of a Correspondent Bank in the banking industry?Acting as a competitor to local banks in foreign countriesProviding services across the globe to individual customersFacilitating business relationships for banks in host countriesConducting international transactions for retail clientsQuestion 1 of 21 2. In the context of correspondent banking, what does the term "Respondent Bank" refer to?The bank in the home country for which the correspondent bank acts as an agentThe bank that initiates wire transfers to foreign countriesThe bank that maintains accounts for individual customers in foreign countriesThe bank that provides financial services exclusively to international clientsQuestion 2 of 21 3. What is the primary purpose of correspondent banking in the global financial system?Facilitating international trade and commerceProviding banking services exclusively to expatriate communitiesMinimizing costs for maintaining relationships with overseas clientsConducting business transactions within domestic marketsQuestion 3 of 21 4. Why is correspondent banking essential for banks operating internationally?To minimize competition with local banks in foreign countriesTo avoid the need for physical presence in every countryTo exclusively serve expatriate communities abroadTo focus solely on domestic banking servicesQuestion 4 of 21 5. Which of the following is true about a NOSTRO account?It is a foreign currency account maintained by a bank in the host country.It is a non-resident bank maintaining an account in the home country.It refers to accounts of other banks.It means "Your account with Us".Question 5 of 21 6. What does a VOSTRO account refer to?Accounts of other banks maintained with a correspondent bank.A foreign currency account maintained by a bank in the home country.Accounts maintained by a bank in its own books to reconcile entries in the NOSTRO account.Accounts maintained by a bank in the home country with a bank in the host countryQuestion 6 of 21 7. What does a LORO account represent?Accounts of other banks maintained with a correspondent bank.A foreign currency account maintained by a bank in the home country.Accounts maintained by a bank in its own books to reconcile entries in the NOSTRO account.Accounts maintained by a bank in the host country with a bank in the home country.Question 7 of 21 8. What is the purpose of maintaining a mirror account in correspondent banking?To track transactions in the NOSTRO account and reconcile entries.To maintain a record of accounts maintained by other banks.To facilitate foreign exchange transactions.To handle payments and collections on behalf of clients.Question 8 of 21 9. What does SWIFT stand for?Society for Worldwide Interbank Financial TelecommunicationsSecure Worldwide Internet Financial TransactionSystem for Worldwide International Financial TransactionsSociety for Worldwide Interbank Financial TransactionsQuestion 9 of 21 10. Which of the following is NOT a service provided by SWIFT?Messaging solutions for Banking & PaymentsTrade Finance messaging solutionsSocial media managementSecurities messaging solutionsQuestion 10 of 21 11. What does CHIPS stand for?Clearing House Interbank Payment SystemComputerized High-speed Interbank Payment SystemCentralized International Payment SystemClearing House Interbank Processing SystemQuestion 11 of 21 12. Which of the following statements about CHIPS is NOT true?It is used for settlement of a large part of US dollar payments in the USA.It was established by the Federal Reserve.It operates only in New York.It was established as a substitute to paper cheques.Question 12 of 21 13. What is the primary role of Fedwire?Settling international paymentsFacilitating securities transactionsHandling a majority of domestic payments in the USAProviding electronic banking services to consumersQuestion 13 of 21 14. Which organization operates the Fedwire system?New York Clearing HouseSociety for Worldwide Interbank Financial Telecommunications (SWIFT)Federal Reserve BankClearing House Interbank Payment System (CHIPS)Question 14 of 21 15. What is the primary function of CHAPS?Handling international paymentsSettling securities transactionsHandling local payments in LondonProviding messaging services for financial institutionsQuestion 15 of 21 16. What is the primary purpose of the TARGET system?Handling domestic payments within individual EU countriesFacilitating international payments outside the EurozoneSettling euro operations involving the EurosystemProviding messaging services for European financial institutionsQuestion 16 of 21 17. What is the minimum amount required for RTGS transfers in India?Rs. 1.00 lakhRs. 1.50 lakhsRs. 2.00 lakhsRs. 2.50 lakhsQuestion 17 of 21 18. Which system settles fund transfer requests of participating banks on a net basis at hourly intervals on all working days in India?IMPSUPINEFTRTGSQuestion 18 of 21 19. As per the amendment effective from April 1st, 2020, what conditions must be met for a Non-Resident Indian to be treated as a Resident for taxation purposes?Stayed in India for at least 120 days in the preceding Financial Year and at least 365 days in the last 4 Financial Years, with taxable income exceeding Rs. 15 lakhsStayed in India for at least 182 days in the preceding Financial Year and at least 60 days in the last 4 Financial Years, with taxable income exceeding Rs. 15 lakhsStayed in India for at least 365 days in the preceding Financial Year and at least 60 days in the last 4 Financial Years, with taxable income exceeding Rs. 15 lakhsStayed in India for at least 120 days in the preceding Financial Year and at least 365 days in the last 4 Financial Years, with taxable income exceeding Rs. 15 lakhsQuestion 19 of 21 20. Which of the following conditions qualify an individual as Resident but Not Ordinarily Resident (RNOR) for the purposes of Income Tax?Should have stayed outside India for 9 years out of the last 10 preceding Financial YearsShould have stayed in India for less than 730 days in the last 7 Financial YearsPIO/Indian Citizen with more than Rs. 15 lakhs income earned from Indian sources, stayed in India for 120 days or more in the previous FY plus 365 days or more in the preceding last 4 FYs or Deemed resident with more than Rs. 15 lakhs income earned from Indian sourcesAll of the aboveQuestion 20 of 21 21. Under what circumstances would an individual be classified as a Deemed Resident for the purposes of Income Tax?An NRI who has resided in India for more than 182 days in the previous Financial YearAn NRI who is not a tax resident of any country and has more than Rs. 15 lakhs income earned in India from Indian sourcesA PIO who has resided in India for more than 182 days in the previous Financial YearAn individual who holds Indian Citizenship and has resided in India for more than 365 days in the previous Financial YearQuestion 21 of 21 Loading...
