Important Words for Banking

Here are some multiple-choice questions (MCQs) on important words with their meanings suitable for a banking exam:

1. What is the meaning of the word "Austerity"?

a) Generosity

b) Frugality

c) Extravagance

d) Abundance

Correct answer: b) Frugality

2. What is the meaning of the word "Collateral"?

a) Central

b) Additional

c) Secured

d) Ambiguous

Correct answer: c) Secured

3. What is the meaning of the word "Liquidity"?

a) Flexibility

b) Insolvency

c) Rigidity

d) Solidity

Correct answer: a) Flexibility


4. What is the meaning of the word "Diversification"?

a) Specialization

b) Concentration

c) Expansion

d) Variation

Correct answer: d) Variation


5. What is the meaning of the word "Inflation"?

a) Deflation

b) Stagnation

c) Price increase

d) Recession

Correct answer: c) Price increase

6. What is the meaning of the word "Mortgage"?

a) Lease

b) Ownership

c) Loan

d) Security

Correct answer: c) Loan

7. What is the meaning of the word "Default"?

a) Compliance

b) Failure

c) Achievement

d) Fulfillment

Correct answer: b) Failure

8. What is the meaning of the word "Debenture"?

a) Equity

b) Bond

c) Asset

d) Liability

Correct answer: b) Bond

9. What is the meaning of the word "Arrears"?

a) Advance payment

b) Current payment

c) Delayed payment

d) Overpayment

Correct answer: c) Delayed payment

10. What is the meaning of the word "Amortization"?

a) Repayment

b) Accumulation

c) Devaluation

d) Appreciation

Correct answer: a) Repayment


These questions cover a range of important banking-related terms and their meanings, which are crucial for candidates preparing for banking exams.