Banking Awareness-2 with answers
1. What is a Repo Rate?
(A) It is a rate at which RBI sell government securities to banks
(B)It is a rate at which banks borrow rupees from RBI
(C)It is a rate at which RBI allows small loans in the market
(D)It is a rate which is offered by Banks to their most valued customers or prime customers (E)None of these
2. In economics it is generally believed that the main objective of a Public Sector Financial Company
like Bank is to:(A) Employ more and more people
like Bank is to:(A) Employ more and more people
(C) Maximize total production
(E) Sell the goods at subsidized cost
(E) Sell the goods at subsidized cost
(B) Maximize total profits
(D) Provide financial service to the people of the of its origin across the country nation
(D) Provide financial service to the people of the of its origin across the country nation
3. Which of the following cannot be called as a Debt Instrument as referred in financial
transactions?
(A) Certificate of Deposits (B) Bonds (C) Stocks (D) Commercial Papers (E) Loans
transactions?
(A) Certificate of Deposits (B) Bonds (C) Stocks (D) Commercial Papers (E) Loans
4. The government formed the panel after many ex-servicemen returned their medals to protest the rejection of their ‘one rank one pension’ demand. Who is heading this panel?(A) K.M. Chandrasekhar (B) R Balakrishanan (C) B S Padmanabham
(D) T. Raja Shekhar (E) R Balu
5. Whenever RBI does some Open Market Operation Transaction, actually it wishes to regulate which of the following?(A) Inflation only (B) liquidity in economy
(C) Borrowing powers of the banks (D) Flow of Foreign Direct Investments (E) None of these
6. The maximum amount of the total Revenue earned by the government of India comes from:
(A) Income Tax (B) Customs Duty (C) Excise Duty (D) Value Added Tax (E) Corporate tax
7.Which is the first Indian company to be listed in NASDAQ ?
(A) Reliance (B) TCS (C) HCL (D) Infosys (E) None of these
8.Which among the following decides the oil Prices in India?
(A) Government of India (B) Government of Respective states(C) Ministry of Petroleum (D) Oil Companies (E) None of these
9. SEBI has been imposed a restriction on money flow in equity through ‘P-notes’. What is the full form of ‘P-notes’?(A) permanent notes (C) participatory notes (E) None of these
(B) purchase notes (D) private notes
10. Which of the following is known as plastic money?
(A) bearer cheques (B) credit cards (C) demand drafts (D) gift cheques (E) None of these
11. When there is an inflationary trend in the economy what would be trend in the pricing of the
Bank products ?
(A) Increasing trends (B) Decreasing trend(C) Constant trend (D) There is no relevance of the inflation in pricing of the Banking Products(E) None of these
12. Banks in our country normally publicize that additional interest rate is allowed on retail domestic
term deposits of?a) Minors b) Married Women C) Senior citizens d) Government Employees'e) Rural residents
13. When the rate of inflation increases?a) Purchasing power of money increases b) Purchasing power of money decreases
C) Value of money increases d) Purchasing power of money remains unaffected e) Amount of money in circulation decreases
14.A centralized database with online connectivity to branches, internet as well as ATM- network which has been
adopted by almost all major banks of our country is known as? a) Investment Banking b) Core Banking
C) Mobile Banking d) National Banking e) Specialized Banking
15.Which of the following is NOT considered a money market instrument?
a) Treasury Bills b) Repurchase Agreement C) Commercial Paper d) Certificate of Deposit e) Shares and Bonds
16.Which of the following is necessary while opening deposit accounts in banks?
a) Will b) Registration C) Nomination d) Indemnity e) Guarantee
17.Which of the following is not a banking term?
a) Letter of credit b) MIBOR C) Factoring services d) Entry load e) None of these
18.Which of the following organizations issue the rules of global trade?
a) IMF b) World Trade Organization C) Foreign trade d) G-20 e) None
19.One single statement that depicts the financial position of a Bank and / or Business enterprise at a given point of time is called:a) Statement of product details b) Foreign exchange C) Balance Sheet d) Balance of payment e) Trading and Manufacturing account
20.The Reverse Mortgage scheme is launched to give benefit to which of the following groups of society?a) Persons below 60 yrs b) Senior Citizens C) Unemployed youth d) Orphans e) All
21.One of the major challenges banking industry is facing these days is curbing deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following act is passed to prevent this activity?a) Payment & settlements Act b) Control money supply Act
C) Narcotics and Psychotropic substance Act d) Prevention of Money laundering Act e) None
22. Which of the following is an example of cash less purchase?
a) Debit card b) Credit card d) All of the above C) ATM withdrawal e) None
23. Whose signature appears on Indian Rs. 100 note?
a) Finance Minister b) RBI Governor C) Finance Secretary d) Chairman, Planning Commission e) None
(D) T. Raja Shekhar (E) R Balu
5. Whenever RBI does some Open Market Operation Transaction, actually it wishes to regulate which of the following?(A) Inflation only (B) liquidity in economy
(C) Borrowing powers of the banks (D) Flow of Foreign Direct Investments (E) None of these
6. The maximum amount of the total Revenue earned by the government of India comes from:
(A) Income Tax (B) Customs Duty (C) Excise Duty (D) Value Added Tax (E) Corporate tax
7.Which is the first Indian company to be listed in NASDAQ ?
(A) Reliance (B) TCS (C) HCL (D) Infosys (E) None of these
8.Which among the following decides the oil Prices in India?
(A) Government of India (B) Government of Respective states(C) Ministry of Petroleum (D) Oil Companies (E) None of these
9. SEBI has been imposed a restriction on money flow in equity through ‘P-notes’. What is the full form of ‘P-notes’?(A) permanent notes (C) participatory notes (E) None of these
(B) purchase notes (D) private notes
10. Which of the following is known as plastic money?
(A) bearer cheques (B) credit cards (C) demand drafts (D) gift cheques (E) None of these
11. When there is an inflationary trend in the economy what would be trend in the pricing of the
Bank products ?
(A) Increasing trends (B) Decreasing trend(C) Constant trend (D) There is no relevance of the inflation in pricing of the Banking Products(E) None of these
12. Banks in our country normally publicize that additional interest rate is allowed on retail domestic
term deposits of?a) Minors b) Married Women C) Senior citizens d) Government Employees'e) Rural residents
13. When the rate of inflation increases?a) Purchasing power of money increases b) Purchasing power of money decreases
C) Value of money increases d) Purchasing power of money remains unaffected e) Amount of money in circulation decreases
14.A centralized database with online connectivity to branches, internet as well as ATM- network which has been
adopted by almost all major banks of our country is known as? a) Investment Banking b) Core Banking
C) Mobile Banking d) National Banking e) Specialized Banking
15.Which of the following is NOT considered a money market instrument?
a) Treasury Bills b) Repurchase Agreement C) Commercial Paper d) Certificate of Deposit e) Shares and Bonds
16.Which of the following is necessary while opening deposit accounts in banks?
a) Will b) Registration C) Nomination d) Indemnity e) Guarantee
17.Which of the following is not a banking term?
a) Letter of credit b) MIBOR C) Factoring services d) Entry load e) None of these
18.Which of the following organizations issue the rules of global trade?
a) IMF b) World Trade Organization C) Foreign trade d) G-20 e) None
19.One single statement that depicts the financial position of a Bank and / or Business enterprise at a given point of time is called:a) Statement of product details b) Foreign exchange C) Balance Sheet d) Balance of payment e) Trading and Manufacturing account
20.The Reverse Mortgage scheme is launched to give benefit to which of the following groups of society?a) Persons below 60 yrs b) Senior Citizens C) Unemployed youth d) Orphans e) All
21.One of the major challenges banking industry is facing these days is curbing deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following act is passed to prevent this activity?a) Payment & settlements Act b) Control money supply Act
C) Narcotics and Psychotropic substance Act d) Prevention of Money laundering Act e) None
22. Which of the following is an example of cash less purchase?
a) Debit card b) Credit card d) All of the above C) ATM withdrawal e) None
23. Whose signature appears on Indian Rs. 100 note?
a) Finance Minister b) RBI Governor C) Finance Secretary d) Chairman, Planning Commission e) None
24.While discussing investments there is a mention of short term government security. What is this investment?a) Debenture b) Mutual funds C) Treasury bill d) Share e) None of these
25.NBFCs are an important part of the Indian financial system. what is meant by this term?
a) New Banking Financial Companies b) Non Banking Financial Companies C) Neo Banking Financial Confederation d) Non banking Fiscal Companies
26.Banking loan against property requires the asset to be free from encumbrances. What does it mean?a) The asset to be free from any liability b) The asset to be properly registered
C) The property to be fully constructed d) The asset should not have multiple owners e) None
27.Which of the following scheme is not meant for investment purposes?
a) National saving certificate b)Infrastructure bonds C)Mutual funds d) Letter of credit e) None of these
28.Basel norms which are important regulatory stipulations are meant for which sector?
a) Insurance b) Banking C) Micro finance d) Pension funds e) None
29.Systematic investment Plans relates to:
a) Mutual Funds b) Life Insurance Companies C) Commercial Banks d) Post office savings schemes e) None
30.Euro money is the official currency of?a) NATO b) UN C) European e) None of these d) Germany e)England
31.RBI stipulates a healthy mix of CASA in the business figures of banks. What is CASA?
a) Customer Analysis and Savings Pattern b) Cost Appreciation and selling Analysis C) Current Account and saving Account d) Credit and savings Aggregate(e)None of these
32.Which one of the following is not an electronic banking delivery channel?
a) Mobile Vans d) Mobile Phone Banking C) Internet Banking d) Tele Banking e) ATM
33.The Rate at which the domestic currency can be converted into foreign currency and vice- versa is known as the ____a) Exchange rate b) MIBOR C) Inter bank Call money rate d) Base rate e) LIBOR
34.Now-a-days Banks are selling third party products. Example of third party product is:
a) Mutual funds b) Term deposits C) Credit cards d) All of these e) None
35. Electronic Clearing Service in banks can be availed only by:
a) Individuals b) Corporates d) All of these C) Senior Citizens e) None
36. Interest payable on savings bank accounts is?
a) De-regulated by RBI b) Regulated by State Governments C) Regulated by Central Govt d) Regulated by RBI e) Regulated by Finance Minister
37.. The usual deposit accounts of banks are?
25.NBFCs are an important part of the Indian financial system. what is meant by this term?
a) New Banking Financial Companies b) Non Banking Financial Companies C) Neo Banking Financial Confederation d) Non banking Fiscal Companies
26.Banking loan against property requires the asset to be free from encumbrances. What does it mean?a) The asset to be free from any liability b) The asset to be properly registered
C) The property to be fully constructed d) The asset should not have multiple owners e) None
27.Which of the following scheme is not meant for investment purposes?
a) National saving certificate b)Infrastructure bonds C)Mutual funds d) Letter of credit e) None of these
28.Basel norms which are important regulatory stipulations are meant for which sector?
a) Insurance b) Banking C) Micro finance d) Pension funds e) None
29.Systematic investment Plans relates to:
a) Mutual Funds b) Life Insurance Companies C) Commercial Banks d) Post office savings schemes e) None
30.Euro money is the official currency of?a) NATO b) UN C) European e) None of these d) Germany e)England
31.RBI stipulates a healthy mix of CASA in the business figures of banks. What is CASA?
a) Customer Analysis and Savings Pattern b) Cost Appreciation and selling Analysis C) Current Account and saving Account d) Credit and savings Aggregate(e)None of these
32.Which one of the following is not an electronic banking delivery channel?
a) Mobile Vans d) Mobile Phone Banking C) Internet Banking d) Tele Banking e) ATM
33.The Rate at which the domestic currency can be converted into foreign currency and vice- versa is known as the ____a) Exchange rate b) MIBOR C) Inter bank Call money rate d) Base rate e) LIBOR
34.Now-a-days Banks are selling third party products. Example of third party product is:
a) Mutual funds b) Term deposits C) Credit cards d) All of these e) None
35. Electronic Clearing Service in banks can be availed only by:
a) Individuals b) Corporates d) All of these C) Senior Citizens e) None
36. Interest payable on savings bank accounts is?
a) De-regulated by RBI b) Regulated by State Governments C) Regulated by Central Govt d) Regulated by RBI e) Regulated by Finance Minister
37.. The usual deposit accounts of banks are?
a) Current accounts, electricity accounts and insurance premium accounts.
b) Current accounts, post office savings, bank accounts and term deposit accounts. C) Loan accounts, savings bank accounts and term deposit accounts.
d) Current accounts, savings bank accounts and term deposit accounts.
e) Current bill accounts and term deposit accounts.
38.Fixed deposits and recurring deposits are?
a) Repayable after an agreed period
b) Repayable on demand
C) Not repayable
d) Repayable after death of depositors
e) Repayable on demand or after an agreed period as per bank’s choice
39.Accounts are allowed to be operated by cheques in respect of?
a) Both savings bank accounts and fixed deposit accounts. b) Savings bank accounts and current accounts.
C) Both savings bank accounts and loan accounts.
d) Both savings bank accounts and cash accounts only.
e) Both current accounts and fixed deposit accounts.
40.Which of the following is correct statement?
a)No interest is paid on current deposit accounts.
b)Interest is paid on current accounts at the same rate as term deposit accounts. C) The rate of interest on current accounts and savings accounts are the same. d) No interest is paid on any deposit by the bank.
e) Savings deposits are the same as current deposits.
41.Banking services delivered to a customer by means of a computer control system that does not directly involve banks branch is called?a) Universal banking b) Virtual banking
C) Narrow banking d) Brick & Mortal banking e) None
42.Financial inclusion means provision of ?
a) Financial services namely payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the bank
b) Ration at affordable cost to persons not yet given the same
C) House at affordable cost to persons not yet given the same
d) Food at affordable cost to persons not yet given the same
e) Education at affordable cost to persons not yet given the same
43.When a bank returns a cheque unpaid, it is called?
a) Payment of the cheque b) Drawing of the cheque
C) Canceling of the cheque d) Dishonour of the cheque e) Taking of the cheque
44.Who is the Chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions (MFI) Sector?a) YH Malegam b) Dr. KC Chakraborty C) C. Rangrajan d) M. Damodaran e)ushathorat
45.Which of the following types of accounts are known as ‘Demat Accounts’?
a) Accounts which are Zero Balance
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
C) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility e) None of the above
b) Current accounts, post office savings, bank accounts and term deposit accounts. C) Loan accounts, savings bank accounts and term deposit accounts.
d) Current accounts, savings bank accounts and term deposit accounts.
e) Current bill accounts and term deposit accounts.
38.Fixed deposits and recurring deposits are?
a) Repayable after an agreed period
b) Repayable on demand
C) Not repayable
d) Repayable after death of depositors
e) Repayable on demand or after an agreed period as per bank’s choice
39.Accounts are allowed to be operated by cheques in respect of?
a) Both savings bank accounts and fixed deposit accounts. b) Savings bank accounts and current accounts.
C) Both savings bank accounts and loan accounts.
d) Both savings bank accounts and cash accounts only.
e) Both current accounts and fixed deposit accounts.
40.Which of the following is correct statement?
a)No interest is paid on current deposit accounts.
b)Interest is paid on current accounts at the same rate as term deposit accounts. C) The rate of interest on current accounts and savings accounts are the same. d) No interest is paid on any deposit by the bank.
e) Savings deposits are the same as current deposits.
41.Banking services delivered to a customer by means of a computer control system that does not directly involve banks branch is called?a) Universal banking b) Virtual banking
C) Narrow banking d) Brick & Mortal banking e) None
42.Financial inclusion means provision of ?
a) Financial services namely payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the bank
b) Ration at affordable cost to persons not yet given the same
C) House at affordable cost to persons not yet given the same
d) Food at affordable cost to persons not yet given the same
e) Education at affordable cost to persons not yet given the same
43.When a bank returns a cheque unpaid, it is called?
a) Payment of the cheque b) Drawing of the cheque
C) Canceling of the cheque d) Dishonour of the cheque e) Taking of the cheque
44.Who is the Chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions (MFI) Sector?a) YH Malegam b) Dr. KC Chakraborty C) C. Rangrajan d) M. Damodaran e)ushathorat
45.Which of the following types of accounts are known as ‘Demat Accounts’?
a) Accounts which are Zero Balance
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
C) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility e) None of the above
46.NEFT means?
a) National Electronic Funds Transfer
b) Negotiated Efficient Fund Transfer system
C) National Efficient Fund Transfer solution
d) Non Effective Fund Transfer system
e) Negotiated Electronic Foreign Transfer system.
47.Distribution of insurance products and insurance policies by banks as corporate agents is known as?a) General insurance b) Non life insurance C) Bancassurance
d) Insurance Banking e) Deposit Insurance
48.In respect of partnership business, LLP stands for:
a) Local Labour Promotion b) Low Labour Projects
d) Longer Liability Partnership C) Limited Loan Partnership e) Limited Liability Partnership
49. What is a stale cheque?
a) A cheque issued without drawer’s signature.
b) A cheque with only signature of the drawer.
C) A cheque which has completed 3 months from the date of its issue. d) Any one of the above. e) None
50..Interest on savings bank account is now calculated by banks on?
a) Minimum balance during the month
b) Minimum balance from 7th to last day of the month C) Minimum balance from 10th to last day of the month d) Maximum balance during the month e) Daily product basis
51.Largest shareholder (in percentage shareholding) of a Nationalized bank is ?
a) RBI b) NABARD C) LIC d) Govt of India e) IBA
52. Banking Ombudsman is appointed by:
A. Reserve Bank of India
B. Government of India
C. Concerned State Govt, where RBI office is located D. Finance Minister E. None of the above
53. Before approaching Ombudsman what should the complainant do?
A. Take up the matter with State Government
B. Take up the matter with concerned Bank Branch within 30 days of cause of action C. Approach Lok Adalat
D. Can directly approach Banking Ombudsman
E. Any of the above
54.What is the maximum period within which the aggrieved customer can approach OMBUSAMAN?A. Within 2 year B. Within 1 year C. Within one month
D. No such limitation period E. None of the above
55.What is the maximum amount for which the Award Can be given by OMBUDSMAN
A. Rs 1,00,000 B. Rs 2,00,000 C. Rs 5,00,000 D. Rs 10,00,000 E. No limit
56.Who will be appointed as Banking Ombudsman?
a) National Electronic Funds Transfer
b) Negotiated Efficient Fund Transfer system
C) National Efficient Fund Transfer solution
d) Non Effective Fund Transfer system
e) Negotiated Electronic Foreign Transfer system.
47.Distribution of insurance products and insurance policies by banks as corporate agents is known as?a) General insurance b) Non life insurance C) Bancassurance
d) Insurance Banking e) Deposit Insurance
48.In respect of partnership business, LLP stands for:
a) Local Labour Promotion b) Low Labour Projects
d) Longer Liability Partnership C) Limited Loan Partnership e) Limited Liability Partnership
49. What is a stale cheque?
a) A cheque issued without drawer’s signature.
b) A cheque with only signature of the drawer.
C) A cheque which has completed 3 months from the date of its issue. d) Any one of the above. e) None
50..Interest on savings bank account is now calculated by banks on?
a) Minimum balance during the month
b) Minimum balance from 7th to last day of the month C) Minimum balance from 10th to last day of the month d) Maximum balance during the month e) Daily product basis
51.Largest shareholder (in percentage shareholding) of a Nationalized bank is ?
a) RBI b) NABARD C) LIC d) Govt of India e) IBA
52. Banking Ombudsman is appointed by:
A. Reserve Bank of India
B. Government of India
C. Concerned State Govt, where RBI office is located D. Finance Minister E. None of the above
53. Before approaching Ombudsman what should the complainant do?
A. Take up the matter with State Government
B. Take up the matter with concerned Bank Branch within 30 days of cause of action C. Approach Lok Adalat
D. Can directly approach Banking Ombudsman
E. Any of the above
54.What is the maximum period within which the aggrieved customer can approach OMBUSAMAN?A. Within 2 year B. Within 1 year C. Within one month
D. No such limitation period E. None of the above
55.What is the maximum amount for which the Award Can be given by OMBUDSMAN
A. Rs 1,00,000 B. Rs 2,00,000 C. Rs 5,00,000 D. Rs 10,00,000 E. No limit
56.Who will be appointed as Banking Ombudsman?
A. CGM or GM of RBI B. Deputy Governor of RBI C. Governor RBI I is an ex-officio Ombudsman D. Finance Secretary E. None of the above
57.KYC norms are liberalized in case of following accounts:
A. Current Account B. Savings Account C. Term Deposit Account D. No Frills Account E. None of the above.
58.The KYC does not include obtaining the following :
A. Identity Proof B. Address Proof
C. Customer Profile D. Vehicle details of the customer E. None of the above
59.Nomination is available for
A. Deposit accounts C. Lockers. B.Joint Individuals D.Only A, and B E. Only A B C
60.Nomination can be given only for:
A. Individuals B. Safe custody articles D. Partnership firms C. Limited Companies E. None of the above
61.Money deposited at a bank that cannot be withdrawn for at fixed period of time is known as a _____:A. Term deposit B. Checking Account C. Saving Bank deposit D. No Frills Accounts E. Current deposit
62.With reference to a cheque which of the following is the ‘drawee bank’?
A. The bank that collects cheque.
B. The payee’s bank.
C. The endorsee’s bank.
D. The bank of the Drawer of the Cheque E. None of the above
63.AML Stands for
A. Anti Monitory Limit B. Anti Money Laundering
C. Always money laundering D. Anytime Money Laundering E. None of the above
64.KYC –Know Your Customer is to identify the Customer, whereas AML- Anti Money Laundering is to identify the Source of Income:A. False B. True C. True only in case of small amounts
D. Not necessary in all cases E. Any of the above
65.If a Depositor is not a Senior Citizen and his Taxable Income is within the exempted limits then he has to submit ———————— to the Bank for not deducting tax at sourceA. Form 15G B. Form 15 H C. Form 61 D. Form 60 E. None of the above
66. Base Rate is the rate below which no Bank can allow their lending to anyone. Who will fix this ‘Base Rate’ for Banks?A. Individuals Banks Board B. Ministry of Commerce C Ministry of Finance D. RBI E. Interest Rate Commission of India
67. Expand NPA
A. No Provision Account B. Non Performing Asset (An asset which ceases to generate income)
C. No Profit Account D. Non-Personal Accounts E. None of the above
68.Finance Ministry advised RBI to allow common ATMs to be owned and managed by Non Banking Institutions. Such ATMs are called:
57.KYC norms are liberalized in case of following accounts:
A. Current Account B. Savings Account C. Term Deposit Account D. No Frills Account E. None of the above.
58.The KYC does not include obtaining the following :
A. Identity Proof B. Address Proof
C. Customer Profile D. Vehicle details of the customer E. None of the above
59.Nomination is available for
A. Deposit accounts C. Lockers. B.Joint Individuals D.Only A, and B E. Only A B C
60.Nomination can be given only for:
A. Individuals B. Safe custody articles D. Partnership firms C. Limited Companies E. None of the above
61.Money deposited at a bank that cannot be withdrawn for at fixed period of time is known as a _____:A. Term deposit B. Checking Account C. Saving Bank deposit D. No Frills Accounts E. Current deposit
62.With reference to a cheque which of the following is the ‘drawee bank’?
A. The bank that collects cheque.
B. The payee’s bank.
C. The endorsee’s bank.
D. The bank of the Drawer of the Cheque E. None of the above
63.AML Stands for
A. Anti Monitory Limit B. Anti Money Laundering
C. Always money laundering D. Anytime Money Laundering E. None of the above
64.KYC –Know Your Customer is to identify the Customer, whereas AML- Anti Money Laundering is to identify the Source of Income:A. False B. True C. True only in case of small amounts
D. Not necessary in all cases E. Any of the above
65.If a Depositor is not a Senior Citizen and his Taxable Income is within the exempted limits then he has to submit ———————— to the Bank for not deducting tax at sourceA. Form 15G B. Form 15 H C. Form 61 D. Form 60 E. None of the above
66. Base Rate is the rate below which no Bank can allow their lending to anyone. Who will fix this ‘Base Rate’ for Banks?A. Individuals Banks Board B. Ministry of Commerce C Ministry of Finance D. RBI E. Interest Rate Commission of India
67. Expand NPA
A. No Provision Account B. Non Performing Asset (An asset which ceases to generate income)
C. No Profit Account D. Non-Personal Accounts E. None of the above
68.Finance Ministry advised RBI to allow common ATMs to be owned and managed by Non Banking Institutions. Such ATMs are called:
A. NBFC ATMs B. Off Site ATMs
C. Third Party ATMs D. White Label ATMs E. None of the above
69.An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated?A. Indian Penal Code B. Negotiable Instrument Act
C. Criminal Procedure Code D. Payment and Settlement Act
E. Indian Contract Act
(Note: ECS used for Electronic Clearing of cheques– Debit ECS for Collection of loan installments) and Credit ECS for payments like Dividends, Salaries etc.
70.What is CTS ?
A. Cash Transaction system (in banks) B. Cheque Transfer System C. Cheque Truncation System D. Cash Transfer System
71.What is India’s rank in this year’s Global Peace Index (GPI) that measured peace in 162 countries?A. 141 B. 110 C. 132 D. 134 E. 152
72.The Reserve Bank of India imposed fine on which of the following private sector banks for violation of KYC (Know Your Customer) norms in June 2013?A.AxisBank B.HDFCBank C.ICICIBank D.Both1and2 E.All1,2and3
73. Primary relationship between a banker and customer starts from .......
1) when the customer opens a bank account.
2) when customer visits the bank.
3) when customer read the broacher of bank.
4) when the customer read the bank advertisement in the newspaper.
5) None of above
74. Relationship between banker and customer can be defined as .......
1) Ethical
2) Philosophical
3) Contractual
4) Negligible
5) Sacrosanct
75. If the customer allowed to enjoy the overdraft then the customer is ........ and the bank is .......
1) creditor, debtor
2) agent, principal
3) master, servant
4) debtor, creditor
5) None of these
76.Who was elected as the Chairman of the Indian Banks’ Association (IBA) for 2014-15 tenure?A. Aditya Puri B. Pratip Chaudhuri C. Rana Kapoor D. T.S Bhasin E. B.A.Prabhakar
77.The headquarters of European Union is situated in which of the following countries?
A. UK B. Germany C. France D. Belgium E. Netherlands
78.The name ‘Bluetooth’ gets its name from a 10th century king of?
A. China C. Greece E. Spain B. Denmark D. Thailand
79. Baglihar Dam is constructed on the river?
A. Chenab C. Indus E. Beas B. Raavi D. Sutlej
80. Which country will host both the World Cup Football 2014 and Olympics 2016?
A. Russia B. Brazil C. Germany D.England E.Australia
C. Third Party ATMs D. White Label ATMs E. None of the above
69.An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated?A. Indian Penal Code B. Negotiable Instrument Act
C. Criminal Procedure Code D. Payment and Settlement Act
E. Indian Contract Act
(Note: ECS used for Electronic Clearing of cheques– Debit ECS for Collection of loan installments) and Credit ECS for payments like Dividends, Salaries etc.
70.What is CTS ?
A. Cash Transaction system (in banks) B. Cheque Transfer System C. Cheque Truncation System D. Cash Transfer System
71.What is India’s rank in this year’s Global Peace Index (GPI) that measured peace in 162 countries?A. 141 B. 110 C. 132 D. 134 E. 152
72.The Reserve Bank of India imposed fine on which of the following private sector banks for violation of KYC (Know Your Customer) norms in June 2013?A.AxisBank B.HDFCBank C.ICICIBank D.Both1and2 E.All1,2and3
73. Primary relationship between a banker and customer starts from .......
1) when the customer opens a bank account.
2) when customer visits the bank.
3) when customer read the broacher of bank.
4) when the customer read the bank advertisement in the newspaper.
5) None of above
74. Relationship between banker and customer can be defined as .......
1) Ethical
2) Philosophical
3) Contractual
4) Negligible
5) Sacrosanct
75. If the customer allowed to enjoy the overdraft then the customer is ........ and the bank is .......
1) creditor, debtor
2) agent, principal
3) master, servant
4) debtor, creditor
5) None of these
76.Who was elected as the Chairman of the Indian Banks’ Association (IBA) for 2014-15 tenure?A. Aditya Puri B. Pratip Chaudhuri C. Rana Kapoor D. T.S Bhasin E. B.A.Prabhakar
77.The headquarters of European Union is situated in which of the following countries?
A. UK B. Germany C. France D. Belgium E. Netherlands
78.The name ‘Bluetooth’ gets its name from a 10th century king of?
A. China C. Greece E. Spain B. Denmark D. Thailand
79. Baglihar Dam is constructed on the river?
A. Chenab C. Indus E. Beas B. Raavi D. Sutlej
80. Which country will host both the World Cup Football 2014 and Olympics 2016?
A. Russia B. Brazil C. Germany D.England E.Australia
81. Bharat Ratna was instituted in?
A. 1954 B. 1955 C. 1961 D. 1969 E. 1960
82. The present Pope chosen in March 2014 hails from?
A. Canada B. Mexico C. Brazil D. Argentina E. France
83. The USP of a Current account is?
A. High minimum balance B.Over draft facility C. No interest payable D. Restricted deposits E. None of these
84. Leads for Home Loans can be obtained from?
A. Traders B. Trusts C. Builders D. Cooperative societies E. None of these
85. The target group for SME loans is?
A. Students B.Rural public C. Entrepreneurs. Housewives D. Salaried persons
E. Government undertakings
86. Which of the following terms is used in the field of finance and banking?
A. Metabolism B. Genetic process C. Centrifugal force D. Debt instrument E. Experimental error
87.Regional Rural Banks have been set up with the basic objective of:
A. Providing credit to semi-urban and urban population
B. Providing deposits facilities to farmers
C. Providing credit and deposit facilities to rural areas
D. Providing credit, deposit and other banking facilities to people in rural areas E. None of the above
88.The following is a mechanism for injecting liquidity by RBI to the financial system:
A. Reverse Repo B. Hike in CRR C. Hike in interest rate D. Repo E. None of the above
89.____________ are Local Institutions functioning like Banks
A. Local Area Banks B. Indigenous Banks C. Private Banks D. Financial Institutions E. All the above
90.The Cash Reserve Ratio is to be maintained by Commercial Banks in the form of:
A. Cash in hand at branches B. Balance with other banks C. Balance in a special account with RBI D. Funds in the currency chest E. Any of the above
options.
A. 1954 B. 1955 C. 1961 D. 1969 E. 1960
82. The present Pope chosen in March 2014 hails from?
A. Canada B. Mexico C. Brazil D. Argentina E. France
83. The USP of a Current account is?
A. High minimum balance B.Over draft facility C. No interest payable D. Restricted deposits E. None of these
84. Leads for Home Loans can be obtained from?
A. Traders B. Trusts C. Builders D. Cooperative societies E. None of these
85. The target group for SME loans is?
A. Students B.Rural public C. Entrepreneurs. Housewives D. Salaried persons
E. Government undertakings
86. Which of the following terms is used in the field of finance and banking?
A. Metabolism B. Genetic process C. Centrifugal force D. Debt instrument E. Experimental error
87.Regional Rural Banks have been set up with the basic objective of:
A. Providing credit to semi-urban and urban population
B. Providing deposits facilities to farmers
C. Providing credit and deposit facilities to rural areas
D. Providing credit, deposit and other banking facilities to people in rural areas E. None of the above
88.The following is a mechanism for injecting liquidity by RBI to the financial system:
A. Reverse Repo B. Hike in CRR C. Hike in interest rate D. Repo E. None of the above
89.____________ are Local Institutions functioning like Banks
A. Local Area Banks B. Indigenous Banks C. Private Banks D. Financial Institutions E. All the above
90.The Cash Reserve Ratio is to be maintained by Commercial Banks in the form of:
A. Cash in hand at branches B. Balance with other banks C. Balance in a special account with RBI D. Funds in the currency chest E. Any of the above
options.
91.Increasing Cash Reserve Ratio from time to time by Reserve Bank of India leads to:
A. Decrease in deposit B. Increasing in deposit
C. Increase in lendable resources D. Decrease in lendable resources. E. Any of the above
A. Decrease in deposit B. Increasing in deposit
C. Increase in lendable resources D. Decrease in lendable resources. E. Any of the above
92.The interest on Marginal Standing Facility sanctioned by RBI to banks is:
A. Repo rate plus 1% C. Repo Rate plus 3%
B. E. None of the above
A) Rs 5 lakh B) Rs 10 lakh C) Rs 12 lakh D) Rs 15 lakhRepo Rate plus 2% D. One percent less than reverse repo rate
A. Repo rate plus 1% C. Repo Rate plus 3%
B. E. None of the above
93. The term ‘moral suasion’ refers to
A The moral duty of a borrower to deal with only one bank
B) The advice given by the Reserve Bank of India to banks/financial institutions in the matter of their lending and other operations with the objective that they might implement or follow it
C) The banker’s duty of secrecy as regards the affairs and accounts of his customers
D) All of the above
E) None of these
A The moral duty of a borrower to deal with only one bank
B) The advice given by the Reserve Bank of India to banks/financial institutions in the matter of their lending and other operations with the objective that they might implement or follow it
C) The banker’s duty of secrecy as regards the affairs and accounts of his customers
D) All of the above
E) None of these
94. When the Reserve Bank of India (RBI) is the lender of last resort, what does it mean?
A) RBI advances money to public whenever there is any emergency B) Commercial banks give fund to the RBI
C) RBI advances necessary credit against eligible securities
D) All of the above
E) None of the above
A) RBI advances money to public whenever there is any emergency B) Commercial banks give fund to the RBI
C) RBI advances necessary credit against eligible securities
D) All of the above
E) None of the above
95. Which public sector bank of India is the first fully Indian bank, established by the Indian national?A) Allahabad Bank
B) Central Bank of India
C) State Bank of India D) Punjab National Bank E) Bank of Baroda
B) Central Bank of India
C) State Bank of India D) Punjab National Bank E) Bank of Baroda
96. Which one of the following is not a money market instrument?
A) Repo
B) A negotiable Certificate of Deposit C) Commercial Paper
D) A Treasury Bill
E) Treasury Bond
A) Repo
B) A negotiable Certificate of Deposit C) Commercial Paper
D) A Treasury Bill
E) Treasury Bond
97. Resources of Land Development Banks operating in the country are raised by
A) share capital from members which is linked to their borrowings from the bank B) reserves created out of profits
C) borrowings comprising of interim accommodation, deposits and debentures D) Only 3
E) All of the above
A) share capital from members which is linked to their borrowings from the bank B) reserves created out of profits
C) borrowings comprising of interim accommodation, deposits and debentures D) Only 3
E) All of the above
98. Land Development Banks provide long-term credit for schemes of basic importance to agriculture as
(A) mechanization of agriculture i.e., loans for purposes of tractors, power tillers, threshers etc
(B) land reclamation, soil conservation, plantation of fruit orchards, dairy development schemes etc. involving heavy expenditure
(C) minor irrigation purposes like wells, dug-cum-bore wells, tube wells, pump sets and irrigation tanks
(D) Only (A) and (B)
(E) All of the above
(A) mechanization of agriculture i.e., loans for purposes of tractors, power tillers, threshers etc
(B) land reclamation, soil conservation, plantation of fruit orchards, dairy development schemes etc. involving heavy expenditure
(C) minor irrigation purposes like wells, dug-cum-bore wells, tube wells, pump sets and irrigation tanks
(D) Only (A) and (B)
(E) All of the above
99. The paid-up capital of Non-Schedule Bank is less than
E) None of the above
100. In periods of depression when the Reserve Bank of India (RBI) desires to encourage the banking system to create more credit, what it does?A) Permits the Bank Rate to be decided by market forces
B) Raises the Bank Rate
C) Reduces the Bank Rate
B) Raises the Bank Rate
C) Reduces the Bank Rate
D) All of the above
E) None of the above
E) None of the above
101. In terms of section 5 (A)(e) of the Banking Regulation Act, 1949, a ‘banking company’ means any compan- which
(A) transacts the business of banking in India
(B) undertakes lending of money
(C) accepts deposits from public and invests the same as trade and industry (D) accepts deposits from the public
(E) All of the above
(A) transacts the business of banking in India
(B) undertakes lending of money
(C) accepts deposits from public and invests the same as trade and industry (D) accepts deposits from the public
(E) All of the above
102. In periods of boom, which leads to economic instability, the Reserve Bank of India (RBI) resorts to?A) Hike in the Bank Rate as a measure of open market operations
B) Buying of approved securities in the market as a measure of open market operations
C) Sale in the market of first class securities in its possession to reduce the supply of money as a measure market operations
D) All of the above
E) None of the above
B) Buying of approved securities in the market as a measure of open market operations
C) Sale in the market of first class securities in its possession to reduce the supply of money as a measure market operations
D) All of the above
E) None of the above
103. Which of the following instruments of credit control adopted by the Reserve Bank of India (RBI) does not fall within ‘general’ or ‘quantitative’ methods of credit control?A) Bank rate
B) Open market operations
C) Stipulation of certain minimum margin in respect of advance against specified commodities D) Variable reserve requirements
E) None of the these
B) Open market operations
C) Stipulation of certain minimum margin in respect of advance against specified commodities D) Variable reserve requirements
E) None of the these
104. Which of the following category of banks were mooted with a view to providing an institutional mechanism for promoting rural and semi-urban savings as well as - the provision of credit for viable economic activities in local areas ?
(A) Regional Rural Banks
(B) Local Area Banks
(C) Private sector banks
(D) Land Development Banks
(E) All of the above
(A) Regional Rural Banks
(B) Local Area Banks
(C) Private sector banks
(D) Land Development Banks
(E) All of the above
105. Which of the following extreme measures may be resorted to by the Reserve Bank of India (RBI), in order to safeguard the interest of the depositing public when the affairs of a bank are observed to be beyond redemption?A) Refusal of a licence or cancellation of an existing licence
B) Merge the bank with any public sector bank
C) Applying to the Central Government for an order of moratorium and thereafter reconstructing or amalgamating the bank with another bank
D) All of the above
E) None of the these
B) Merge the bank with any public sector bank
C) Applying to the Central Government for an order of moratorium and thereafter reconstructing or amalgamating the bank with another bank
D) All of the above
E) None of the these
106. Which of the following statements about Local Area Banks are correct ?
A) Local Area Banks are required to observe the priority sector lending targets at 40 per cent of net bank credit as applicable to other domestic bank
A) Local Area Banks are required to observe the priority sector lending targets at 40 per cent of net bank credit as applicable to other domestic bank
(B) Local Area Banks have to lend at least 25 per cent of their priority sector deployments (10 per cent of net bank credit) to weaker sections within the over all 40 per cent target sfor priority sector (C) Local Area Banks are registered as a public limited company under the Companies Act, 1956 (D) Only (A) and (B)
(E) All of the above
(E) All of the above
107. Life Insurance Corporation of India is a ____________ ?
A) Department of Govt. of India
B) Independent Body
C) Corporation established by a special Act of Parliament D) Company established under Companies Act 1956
E) Non-Governmental Organization (NGO)
A) Department of Govt. of India
B) Independent Body
C) Corporation established by a special Act of Parliament D) Company established under Companies Act 1956
E) Non-Governmental Organization (NGO)
108. Which of the following bank became the first in India to be fully computerized?
A) State Bank of India B) Punjab National Bank C) Bank of Baroda
D) Bank of India
E) Union Bank of India
A) State Bank of India B) Punjab National Bank C) Bank of Baroda
D) Bank of India
E) Union Bank of India
109. Demand of which among the following will be called as Direct Demand?
A) Weaving Machine
B) Wool for Factory
C) Sweatert
D) Wool for making gloves E) None of these
A) Weaving Machine
B) Wool for Factory
C) Sweatert
D) Wool for making gloves E) None of these
110. The ‘No Frill Accounts’ facility provided by the banks is aimed at which of the following categories of people?A) Corporate world
B) Senior citizens
C) Current account holders D) Poor people
E) Government employees
B) Senior citizens
C) Current account holders D) Poor people
E) Government employees
111. In the context of banking business, the increasing trend in the Burden Bearing Ratio would show the following?A) Less burden bearing capacity of the bank
B) More burden bearing capacity of the Bank
C) Gradual increase in the bad debts
D) Improvement in the business growth
E) None of these
B) More burden bearing capacity of the Bank
C) Gradual increase in the bad debts
D) Improvement in the business growth
E) None of these
112. Under the ‘Swabhiman’ above how much population the government has decided to provide banking facilities to unbanked areas?A) 2000
B) 3000
C) 4000
D) 5000
E) 6000
B) 3000
C) 4000
D) 5000
E) 6000
113. Which of the following statements are correct in regard to foreign banks operating in India?
(A) The parent foreign bank of a wholly owned subsidiary would continue to hold 100 per cent equity in the Indian subsidiary for a minimum prescribed period of operation
(A) The parent foreign bank of a wholly owned subsidiary would continue to hold 100 per cent equity in the Indian subsidiary for a minimum prescribed period of operation
(B) Foreign banks would be permitted to acquire a controlling stake in a phased manner, but only in those private sector banks which are identified by the Reserve Bank for restructuring
(C) Foreign banks would be allowed to open more than the existing WTO commitment of 12 branches in a year
(D) Only (A) and (B)
(E) All of the above
(C) Foreign banks would be allowed to open more than the existing WTO commitment of 12 branches in a year
(D) Only (A) and (B)
(E) All of the above
114. The issued/paid-up capital of a Regional Rural Bank should be
(A) Rs. 5 lakh
(B) minimum Rs 25 lac and maximum Rs 100 lac
(C) Rs. 80 lac
(D) Rs 60 lac
(E) None of the above
(B) minimum Rs 25 lac and maximum Rs 100 lac
(C) Rs. 80 lac
(D) Rs 60 lac
(E) None of the above
115. Regional Rural Banks are classified as
(A) subsidiaries of NABARD
(B) subsidiaries of the sponsor banks (C) scheduled commercial banks
(D) All of the above
(E) None of the above
(A) subsidiaries of NABARD
(B) subsidiaries of the sponsor banks (C) scheduled commercial banks
(D) All of the above
(E) None of the above
116. In which city the Bank of International Settlements (BIS) located?
A) New York B) Basel C) Washington D) Davos E) Paris
117. Foreign exchange reserves of India are kept in the custody of which of the following?
A) International Bank for Reconstruction and Development B) Reserve Bank of India
C) State Bank of India
D) International Monetary Fund
E) Government Treasury
A) International Bank for Reconstruction and Development B) Reserve Bank of India
C) State Bank of India
D) International Monetary Fund
E) Government Treasury
118 Which of the following is the oldest public sector bank of India having branches all over the country and serving for the last 147 years and even today?A) Bank of India
B) Punjab National Bank
C) Allahabad Bank
D) State Bank of India
E) None of these
B) Punjab National Bank
C) Allahabad Bank
D) State Bank of India
E) None of these
119. Biometric ATMs have been introduced by many banks recently, to cater to which type of customers?A) Urban customers
B) Non-Resident Indians
C) People with dubious charactersb
D) Rural and illiterate people
E) Bank employees
B) Non-Resident Indians
C) People with dubious charactersb
D) Rural and illiterate people
E) Bank employees
120. Which of the following is also known as the National Bank?
A) Reserve Bank of India
B) Asian Development Banks
A) Reserve Bank of India
B) Asian Development Banks
C)State Bank of India D) NABARD E)None of these
8 comments:
THANKS SIR
sir where should i find answers?
How to know the Answers
sir could you please paste the answers in the bottom of the page,this may reduce the confusion among answers
thanq u sir
Now answers are available
Thank you sir :)
Thank u sir :)
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