11/28/13

Basic Banking Awareness Questions Answers

1. First Governor of RBI was a) Hilton Young b) Paul Samuelson c) C.D.Deskmukh d) O.A Smith 2. At the time of nationalization who was the Governor ofRBIa) O.A Smith b) J.B Taylor c) C.D. Deshmukh d) K.C.Neog 3. The RBI was nationalized in the year a)1949 b)1956 c)1959 d)1947 4. The general superintendence and director of the bank is entrusted to central board of directors of a) 10 members b) 20 members c) 25 members d) 30 members 5. Paper currencies of our country are issued by RBI under a) Section- 22 of the RBI act -1934 b) Section- 24 of the RBI act -1934 c) Section- 28 of the RBI act -1934 d) None of these 6. One rupee currency notes bear the signature of a) PM b) President of India c) Governor of RBI d) Finance Secretary of India 7. Ten rupees notes bear the signature of a) President b) Finance Minister c) Secretary of Ministry of finance d) Governor of RBI 8. Which of the following is the banker of the banks a) IDBI b) SBI
www.bankingmaterials.com/basic-banking-awareness-questions-answers/ 1/7

11/28/13

Basic Banking Awareness Questions Answers

c) RBI d)UTI 9. In which of the following banks one cant open a personal account a) Co-Operative Banks b) Commercial banks c) Regional Rural Banks d) RBI 10. Which of the following banks is the banker to the government a) SBI b) SEBI c) RBI d) IRDA 11. Which of the followings are the function of RBI a) Regulation of currency and flowing of credit system b) Maintaining exchange values of rupee c) Formulating monetary policy of India d) All of these 12. Credit rationing in India is done by a) SBI b) LIC c) UTI d) RBI 13. The first bank of India was a) Bank of Hindusthan b) Imperial Bank c) Bank of Bengal d) Oudh Commercial Bank 14. The first Indian fully liability and managed bank was a) PNB b) Traders Bank c) SBI d) Presidency Bank of India 15. The rates at which the RBI extends credit to the commercial bank is called a) Bank Rate b) Reverse Repo Rate c)Interest Rate d) None of these

www.bankingmaterials.com/basic-banking-awareness-questions-answers/

2/7

11/28/13

Basic Banking Awareness Questions Answers

16. In which of the following is not the any element of monetary policy of RBI a) Bank rate b) Open Market Operation c) Public Expenditure d) All of these 17. The head of the RBI is called as a) Governor of RBI b) Chairman of RBI c) Finance Head d) Managing Director 18. Which of the following is the last lender of the last resort ofcommercial banka) SBI b) Union Govt., c) RBI d) UTI 19. The RBI is agent of central government and of all state government except a) Bihar b) Goa c) Jammu and Kashmir d) Mizoram 20. Raghuram G Rajan is RBIs ________ Governor. a) 23rd b) 21st c) 15th d) 26th 21. The Banking Concept in India was first developed by a) British b) French c) Indian d) None of these 22. The rate at which RBI gives short term credit to the commercial banks against government securities with buy back provision is called a) Bank Rate b) Repo Rate c) Reverse repo rate d) Interest rate 23. The rate at which RBI takes loans from commercial banks is called a) Repo Rate
www.bankingmaterials.com/basic-banking-awareness-questions-answers/ 3/7

11/28/13

Basic Banking Awareness Questions Answers

b) Reverse Repo Rate c) Bank Rate d) Interest Rate 24. At present the Reverse Repo Rate of RBI is a) 8.25 b) 7.25 c) 7.50 d) 6.75 25. Bank rate of RBI is also known as a) Interest Rate b) Discount Rate c) fed rate d) bid rate 26. Which of the following is not the any element of quantitative credit control policy of RBI a) CRR b) SLR c) Selective credit control d) open market operation. 27. At present CRR of RBI is a) 4% b) 7.5% c) 8.5% d) none of these 28. At present SLR of RBI is a) 23% b) 21.5% c) 23.5% d) none of these 29. The apex organization of Indian money market is a)SBI b) SEBI c) RBI d) IRDA 30. If the cash reserve is lowered by RBI, what will be its effect on credit creation a) Decrease b) Increase c) No Change d) None of these
www.bankingmaterials.com/basic-banking-awareness-questions-answers/ 4/7

11/28/13

Basic Banking Awareness Questions Answers

31. The expansion of money supply of an economy depends on a) The policy of CRR b) The bank rate policy c) Open market operation d) All of these 32. Among the following who are eligible to benefit from the Mahatma Gandhi National Rural Employment Guarantee Act? a) Adult Members of only the scheduled caste and scheduled tribe holders b) Adult of below poverty line household c) Adult members of household of all backward community d) adult members of any rural household 33. Which of the following banks merged with Punjab national banks in 1993 a) New bank of India b) Central Bank of India c) Imperial Bank of India d) Common bank of India 34. A currency, the exchange values of which is expected to remain stable due to strong performance by its economy. This currency is a) Soft Currency b) Hot currency c) Fiat currency d) None of these (Hard Currency) 35. The Reserve Bank of India issues under the following note issue method? a) Proportional Reserve System b) Minimum Reserve System c) Maximum Reserve System d) Fixed Fiduciary System 36. What is a Scheduled Bank? a) A bank having Rs 10 Crore deposits b) A bank having Rs 100 Crore deposits c) A bank having Rs 5 Crore deposits d) A bank included in the second schedule of RBI act 1934. 37. How many languages are used on a Ten Rupee note? a) 2 b) 7 c) 10 d) 15 38. The place where bankers meet and settle their mutual claims and accounts is known as
www.bankingmaterials.com/basic-banking-awareness-questions-answers/ 5/7

11/28/13

Basic Banking Awareness Questions Answers

a) Treasury b) Clearing House c) Dumping House d) Collection centre 39. The largest Public sector bank in India a) SBI b) PNB c) RBI d) ICICI 40. Which of the following is not the function of RBI a) Bankers bank b) Banker to public c) custodian of foreign exchange d) Bankers to Govt. 41. Who is responsible for the collection and publication of monetary and financial informationa) Finance Commission b) Finance ministry c) RBI d) Auditor and Comptroller general of India 42. Which of the following regulatory authority to oversee the new issues, protect the investment and investors, promote the development of Capital Market and regulate the working of Stock Exchange a) UTI b) IRDA c) RBI d) SEBI 43. After a long span of 22 years, RBI released Rs.1000/- currency note for circulation in a) 2000 b) 2002 c) 2005 d) 2008 44. Regional Rural banks are working in all states of the country except a) Sikkim and Goa b) Sikkim and Manipur c) Manipur and Nagaland d) Jammu and Kashmir 45. The National Housing Bank is a subsidiary of a) RBI b) NABARD
www.bankingmaterials.com/basic-banking-awareness-questions-answers/ 6/7

11/28/13

Basic Banking Awareness Questions Answers

c) IDBI d) UTI 46. At present the ceiling of Foreign Direct Investment (FDI)** in insurance sector in India is a) 26% b) 49% c) 51% d) 74% 47. Rs. 25 Paisa was ceased by the Govt of India on a) 30th june 2011 b) 30th July 2011 c) 1st January 2011 d) 1st July 2011 48. Initial Public Offering (IPO) is associated with a) RBI b) Stock Exchange c) IRDA d) Indian Postal Service 49. The Basic regulatory authority for mutual funds and stock markets lies with the a) Government of India b) Reserve Bank of India c) Securities and Exchange Board of India (SEBI) d) Stock Exchange 50. Monetary policy Referes to the policy of a) Money Lenders b) Government c) Commercial Banks d) RBI

www.bankingmaterials.com/basic-banking-awareness-questions-answers/

7/7