GK Quiz - Banking Awareness

1.________ is an account maintained in foreign currency with an Authorised Dealer Category – I bank.

A. FCNR
B. Current Account
C. SB Account
D. EEFC
E. None of these

2.A bank authorized to deal in foreign exchange is known as _____

A. Category – I bank
B. Category – II bank
C. Category – III bank
D. All of these
E. None of these

3. EEFC is a facility provided to the foreign exchange earners, including exporters, to credit ____ of their foreign exchange earnings to the account.

A. 75%
B. 90%
C. 80%
D. 100%
E. None of these

4. An EEFC account can be held only in the form of a ______

A. FCNR
B. Current Account
C. SB Account
D. EEFC
E. None of these

5. EEFC account can offer _______ of Interest

A. 3%
B. 8%
C. 10%
D. 6%
E. No Interest

6. SEZ Units cannot open ________

A. Fixed Deposit
B. Current Account
C. SB Account
D. EEFC
E. None of these

7. Which of the following facility is available for operation of the EEFC account?

A. DD
B. Cheque
C. RD
D. All of these
E. None of these

8. SEZ stands for _____

A. Special Environment Zone
B. Super Economic Zone
C. Super Environment Zone
D. Special Economic Zone
E. None of these

9. What is the maximum restriction on withdrawal in rupees of funds held in an EEFC account?

A. 1 lakh
B. 2 lakh
C. 3 lakh
D. 5 lakh
E. No Restriction

10. In _______ account, the amount withdrawn in Rupees shall not be eligible for conversion into foreign currency.

A. FCNR
B. Current Account
C. SB Account
D. EEFC
E. None of these







Answers with Explanations

1. D. EEFC

Explanation:
Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorized Dealer Category – I bank. 

2. A. Category – I bank

Explanation:
A bank authorized to deal in foreign exchange is known as Authorized Dealer Category I Bank. 

3. D. 100%

Explanation:
EEFC is a facility provided to the foreign exchange earners, including exporters, to credit 100% of their foreign exchange earnings to the account. 

4. B. Current Account

Explanation:
An EEFC account can be held only in the form of a Current Account. 

5. E. No Interest

Explanation:
No interest is payable on EEFC accounts.

6. D. EEFC

Explanation:
SEZ Units cannot open EEFC Accounts 

7. B. Cheque
Explanation:
Cheque facility is available for operation of the EEFC account. 

8. D. Special Economic Zone

Explanation:
Special Economic Zone.

9. E. No Restriction

Explanation:
No restriction on withdrawal in Rupees of funds held in an EEFC account.

10. D. EEFC


Explanation:
The amount withdrawn in Rupees shall not be eligible for conversion into foreign currency and for re-credit to the account.