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November 2015

1. Kisan Credit Cards (KCC) Scheme was formulated in the year:


(1) 1996
(2) 1997
(3) 1998-99
(4) 2000
(5) None of the above
2. The government has allowed issue of Long-Term Bonds for Insurance Companies and others upto:
(1) 10 years
(2) 15 years
(3) 25 years
(4) 30 years
(5) None of the above
3. Which of the following types of ATMs eliminates the need for PIN entry and authenticated customer
transactions by thumb impressions:
(1) White Label ATMs
(2) Biometric ATMs
(3) On-site ATMs
(4) Off-site ATMs
(5) None of the above
4. Which agency is exclusively concerned with the credit needs of all types of agricultural and rural
development:
(1) State Bank of India
(2) Industrial Development Bank of India
(3) Reserve Bank of India
(4) NABARD
(5) None of the above
5. What is the name of technology given to the recently introduced computerised clearance of cheques:
(1) Automatic clearance
(2) MICR
(3) Speedline System
(4) Special clearning
(5) None of the above
6. Ways and Means advances are provided by Reserve Bank of India only to:
(1) central Government
(2) State Government
(3) Both (1) and (2)
(4) None of the above
7. Micro Credits are loans:
(1) granted to distressed persons (other than farmers) to pre-pay their debt to non-institutional lenders against appropriate
collateral or group security
(2) not exceeding Rs. 50,000 per borrower provided by banks
(3) both (1) and (2)
(4) None of the above
8. Rural Infrastructure Development Fund (RIDF) is financed by:
(1) Selected group of Public Sector Banks
(2) Ministry of Rural Development
(3) Reserve Bank of India
(4) NABARD
(5) None of the above
9. Which of the following is not included in CAMELS:
(1) Capital Adequacy and Asset Quality
(2) Management and Earing Performance
(3) Employees Performance
(4) Liquidity and Systems
(5) None of the above
10. PAN number is required for all transactions above
(1) Rs. 25,000
(2) Rs. 50,000
(3) Rs. 1 lac
(4) Rs. 10 lacs
(5) None of the above

11. The components of Tier I capital of a banking company include:


(1) capital reserve representing surplus arising out of sale proceeds of assets
(2) paid-up capital, statutory reserves and other disclosed free reserves, if any
(3) both (1) and (2)
(4) either (1) and (2)
(5) None of the above
12. A mortgage involves:
(1) transfer of ownership
(2) transfer of possession
(3) transfer of interest
(4) All of the above
(5) None of the above
13. Bank holidays under Section 25 of the Negotiable Instruments Act, 1881 are declared by:
(1) State Government for the respective State
(2) Banking Operations Department
(3) Central Government
(4) RBI
(5) None of the above
14. An agricultural advance given for allied activity, viz., poultry, is classified as N.P.A. if:
(1) interest and installments remain unpaid beyond 90 days
(2) interest and installments remain due for 2 crop seasons
(3) interest remains outstanding for 2 and a half years
(4) none of the above
(5) None of the above
15. Banking Regulation Act, 1949, does not at all apply to
(1) nationalized banks
(2) State bank of India and its subsidiaries
(3) foreign banks having branches in India
(4) Primary agricultural credit societies and co-operative land mortgage banks
(5) None of the above
Answers

1. 3
2. 4
3. 2
4. 4
5. 2
6. 3
7. 3
8. 4
9. 3
10. 3
11. 3
12. 1
13. 4
14. 2
15. 4

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1. Which of the following is the first Universal Bank established in India?
1) IDBI Bank Ltd.
2) ICICI Bank ltd.
3) Reserve bank of India
4) NABARD
5) HDFC Bank Ltd.
2. Local Area Banks
1) are licensed under the Banking Regulation Act, 1956
2)are eligible for inclusion in the Second Schedule to the Reserve bank of India Act, 1934
3) Have minimum paid up capital of Rs. 5 crore with promoters contribution being at least Rs. 2 crore
4) all of the above
5) none of the above

3. The promoters of Local Area Banks may comprise


1) individuals
2) corporate entities
3) trusts and societies
4) accepts deposits from public
5) all of the above
4. The regional Rural Banks are sponsored by
1) Unit Trust of India
2) Reserve Bank of India
3) Life Insurance Corporation of India
4) NABARD
5) Any Scheduled Commercial bank
5. RRBs are permitted to undertake corporate agency business, without risk participation, for distribution of
all types of insurance products, including health and animal insurance subject to the condition that
1) The bank should comply with the Insurance Regulatory and Development Authority (IRDA) regulations for acting as
composite corporate agent.
2) The bank should not adopt any restrictive practice of forcing its customers to go in only for a particular insurance
company in respect of assets financed by the bank
3) The risks, if any, involved in insurance agency should not get transferred to the business of the bank
4) none of the above
5) all of the above
6.
1)
2)
3)
4)
5)

Deposits with Regional Rural Banks are insured by


Life Insurance Corporation of India
General Insurance corporation
Deposits Insurance and Credit Guarantee corporation
None of the above
all of the above

7. Under the Banking Regulation Act, 1949, which of the following is not qualified to be called as banks in the
co-operative sector?
1) Urban Co-operative banks
2) State Co-operative banks
3) Primary Agricultural Credit Societies
4) Central Co-operative Banks
5) None of the above
8. Central co-operative banks
1) occupy a crucial importance in the co-operative credit structure
2) from an important link between the state co-operative bank at the apex and the primary agricultural credit societies at
the base
3) are closer to the primary societies than an apex bank could be
4) all of the above
5) none of the above
9. The primary function of a central co-operative bank is to
1) mobilize the resources in the district for financing its members to the maximum extent possible
2) to channelise the flow of funds from the co-operative banks
3) both of the above
4) all of the above
5) none of the above
10. The term Merchant Banking connotes
1) Services rendered by banks for merchants and traders capital requirements to merchants covered under DICGC
Guarantee Scheme
2) Telegraphic transfers effected by merchants
3) catering to the needs of corporate customers raising finance
4) All of the above
5) none of the above
11. Under merchant banking, consultancy services are rendered by banks/merchant bankers for
1) floating of new companies
2) preparation, planning and execution of new projects
3) giving expert guidance and managing the new promotions or new promotions of industries/enterprises
4) all of the above
5) none of the above
Answers

1.)
2.)

2
4

3.)
4.)
5.)
6.)
7.)
8.)
9.)
10.)
11.) 4

5
5
5
3
3
4
3
3

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1. Which of the following terms NOT used in the field of Banking & Finance?
(1) Overdraft
(2) Base Line
(3) RTGS

(4) GBC
(5) None of the above
2. Which of the following organizations is known as a regulator associated with
the financial activities in India?
(1) ISRO
(2) WHO
(3) UNESCO
(4) SEBI
(5) None of the above
3. When someone wants to open a new saving bank account, the bank asks
him/her to bring various documents. Which of the following is one of these
documents?
(1) Certificate of medical fitness
(2) Degree Certificate
(3) Proof of Residence & Identity
(4) None of the above
4. Which of the following is NOT the name of a multinational bank?
(1) BNP Paribas
(2) British Bank of Middle East
(3) Standard Chartered Bank
(4) Cathay Pacific
(5) None of the above
5. Which of the following is an example of cash less purchase?
(a) ATM Withdrawal
(b) Credit Cards
(c) Debit Card
(1) Only a
(2) Only (b)
(3) Only (b) and (c)
(4) All of these
(5) None of the above
6. Who amongst the following was never a Governor of the RBI?
(1) Bimal Jalan
(2) Y.V. Reddy

(3) Arup Roy Chodhury


(4) D.D. Subbarao
(5) None of the above
7. Which of the following is the name of a private sector Bank in India?
(1) IDBI Bank
(2) Axis Bank
(3) Corporation Bank
(4) UCO Bank
(5) None of the above
8. Some major banks and financial institutions in various Western countries were
to wind up their business and/or declare themselves in financial problems during
last few years. This trend is technically known as:
(1) Devaluation
(2) Deformation
(3) Global Slowdown
(4) Political backdrop
(5) None of the above
9. Exporters in India get insurance cover and risk cover form which of the
following organizations?
(1) SIDBI
(2) NABARD
(3) ECGC
(4) RBI
(5) None of the above
10. Which of the following is NOT a type of cheque issued by an individual?
(1) Bearer cheque
(2) Order cheque
(3) Crossed cheque
(4) Savings cheque
(5) None of the above

Answers
1. 2
2. 4
3. 3
4. 4
5. 3
6. 3
7. 2
8. 3
9. 3
10. 4

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1. ______ is a type of preference share where the dividend payable on the same accumulates, if not paid and after a specified
date, these shares will be converted into equity capital of the company.
a) Preference shares
b) cumulative preference shares
c) cumulative convertible preference shares
d) participating preference shares
e) none of the above
2. A bond giving the investor the option to convert the bond into equity at a fixed conversion price is referred to as _____ bond.

a) Coupon bond
b) zero coupon bond
c) convertible bond
d) conversion bond
e) none of the above
3. The issue of new securities to existing shareholders at ratio to those already held is known as
a) Preference shares
b) rights shares(Issue)
c) bonus shares
d) cumulative preference shares
e) none of the above
4. When it comes to the following term namely- IPO, what do you mean by P?
a) Provisions
b) Public
c) Private
d) Prudent
e) Pension
5. _____ refers to the right of certain preference shareholders to participate in profits, after a specified fixed dividend contracted
for, is paid.
a) Preference shares
b) cumulative preference shares
c) participating preference shares
d) preference shares
e) none of the above
6. ______ refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed
on the stock exchange.
a) Security market
b) Secondary market
c) Stock market
d) Bond market
e) debenture market
7. The short term bearer (up to 364 days) bearer discount security, issued by the government (through the Reserve Bank of India)
as a means of meeting its cash requirements is called as
a) Treasury bills
b) commercial paper
c) coupon bonds
d) zero coupon bonds
e) convertible bonds
8. When it comes to the following term FPO, what do you mean by F?
a) Further
b) Facility
c) Favour
d) Future
e) None of the above
9. In the ______________, the securities like shares and debentures are offered to the public subscription for the purpose of raising
capital or fund:
a) Secondary market
b) Primary market
c) share market
d) debenture market
e) none of the above
10. The specified interest rate on a fixed maturity security fixed at the time of issue is called as:
a) Market rate of interest
b) call rate
c) repo rate
d) coupon rate
e) discount rate

Answers:
1. c
2. c
3. b
4. b

5. c
6. b
7. a
8. e
9. b
10. d
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1. DAX is the stock exchange of _______?
(a) Germany
(b) Japan
(c) USA
(d) Maxico
(e) None of the Above
2. Increase in deposit rate results in ________?
(a) Lower savings
(b) Lower investments
(c) Increase in bank branches
(d) Increase in savings
(e) None of the Above
3. Rise in inflation rate leads to decline in ______?
(a) Interest rate
(b) Raise in the deposits in the banks
(c) Decrease the real interest rate
(d) Raise the credit growth by banks
(e) None of the above
4. Difference between interest earned and interest paid is called______?
(a) Gross Interest Income
(b) Paid Interest Income
(c) Free Interest Income
(d) Net Interest Income
(e) All of the above
5. The banks are issuing the Kisan credit cards these days to give the free credit period. Generally what is the Validity period of the
Kisan Credit Card?
(a) 1 year
(b) 10 years
(c) 5 years
(d) 8 years
(e) 3 years
6. Asset-Liability mismatch usually happened in________?
(a) Home Loan and Infrastructure Project Financing
(b) Education loan and personal loan
(c) Personal loan and marriage loan
(d) Travel loan and marriage loan
(e) None of the above
7. The chief function of Reserve Bank of India includes_______?
(a) Minting Currency
(b) framing the monetary and credit policy
(c) With the help of Circulation of money, maintaining price stability
(d) Foreign Exchange matters
(e) All of the above
8. The different names of Reserve Bank of India are_______?
(a) Central bank
(b) Bankers bank
(c) Lender of the last resort
(d) Apex bank
(e) All of the above
9. The government of India has the mint at _______?
(a) Noida
(b) Kolkata
(c) Mumbai
(d) Hyderabad
(e) All of the above

10. Indian paper currency is minted in Mysore and also in________?


(a) Kolkata
(b) Chennai
(c) Bengaluru
(d) Nasik
(e) Delhi

Answers:
1. A
2. D
3. C
4. D
5. E
6. A
7. E
8. E
9. E
10. D
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1. CASA is basically the combination of Current account and saving account deposits with a Bank. Why do the Banks put greater
emphasis on mobilizing a high CASA ratio?
(a) In order to fulfill RBI stipulation for it
(b) It helps reduction in average cost of funds
(c) These are stable deposits
(d) These help Banks maintain a healthy asset-liability ratio
(e) None of the Above
2. When a cheque is drawn on a bank, the bank is called the _______?
(a) Payee
(b) Drawee
(c) Drawer
(d) Endorsee
(e) None of the above
3. One of the State Government avails of a temporary financial assistance from Reserve Bank of India. This type of finance is called
_______?
(a) Overdraft
(b) Temporary loan
(c) Short term finance
(d) Ways and Means advance
(e) None of the above
4. Except one of the following instruments others are issued at discount. Identify the exception _____?
(a) A Certificate of Deposit (CD)
(b) A Treasury Bill (T Bill)
(c) A Commercial Paper (CP)
(d) A Fixed Deposit (FD)
(e) None of the above
5. Cash Reserve Ratio (CRR) is to be maintained on Net Demand and Time Liabilities (NDTL). SLR is thus required to be maintained
on ________?
(a) Total Demand and Time Liabilities
(b) Net Demand and Time Liabilities
(c) Total Demand and Time Assets
(d) Net Demand and Time Asset
(e) None of the above
6. Garnishee order is issued by ________?
(a) Judgement Debtor
(b) Judgement Creditor
(c) Judgement Debtors Debtor
(d) Judgement Creditor's Creditor
(e) None of the above
7. CAMEL model is used by _______?
(a) Bankers to evaluated a credit proposal

(b) Bankers to manage their risks


(c) RBI inspectors to evaluate banks functions
(d) Merchant Bankers to evaluate portfolio investment
(e) None of the above
8. Match the following:
i) Financial intermediaries

A) Mutual funds

ii) ATMs
iii) Certificate of Deposits

B) E-Banking
C) Money Markets

iv) Books debts

D) Assignment

(a) i-C, ii-D, iii-A, iv-B


(b) i-D, ii-C, iii-B, iv-A
(c) i-A, ii-B, iii-C, iv-D
(d) i-A, ii-C, iii-B, iv-D
(e) None of the Above
9. Capital adequacy is worked out based on?
(a) Total demand and time liabilities
(b) Net demand and time assets
(c) Risk weighted assets
(d) Risk weighted liabilities
(e) None of the above
10. Which of the following instruments is not a Negotiable Instrument, as per NI Act, 1881?
(a) Bills of Exchange
(b) Letter of credit
(c) Bank Draft
(d) Promissory Notes
(e) Cheque

Answers:
1. B
2. A
3. D
4. D
5. B
6. D
7. C
8. C
9. C
10. B

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1.What do you mean by C in the term called as FMCG?
a) Customer
b) Consumer
c) Creditor
d) Country
e) None of the above
2. In the term called as AMFI, what do you mean by M?
a) Mutual
b) Money
c) Managing
d) Miscellaneous
e) none of the above
3. The money market in our country has been divided into organized sector and unorganized sector and which among the
following do not fall under the unorganized sector category?
a) Reserve Bank of India
b) All commercial banks including SBI group, nationalized banks, foreign banks
c) Life Insurance Corporation of India
d) Indigenous banks
e) General Insurance Corporation of India

4. When a currency is converted into any other currency without any limit and for any purpose, it is called as
a) Fully convertible
b) partially convertible
c) controlled convertible
d) not at all convertible
e) none of the above
5. Which of the following is included in bancassurance?
a) Insurance policies issued by the banks in their names
b) Selling by a bank the insurance policies of its ancillary insurance company
c) Selling by a bank the insurance policies of any insurance company
d) All the above
e) None of the above
6. When it comes to scheduled commercial banks, which out of the following is not true?
a) Nationalised banks
b) Regional Rural banks
c) Foreign banks
d) Private sector banks
e) Local area banks
7. Which amongst the following is called as mother of deposits?
a) Current account
b) fixed deposit
c) recurring deposit
d) savings bank
e) reinvestment deposit
8. Which amongst the following is not term deposits issued by commercial banks?
a) Current account
b) Fixed deposit
c) Recurring deposit
d) Reinvestment deposit
e) all the above
9. What do you mean by money laundering?
a) Washing the currency notes in a good laundery
b) converting money obtained through illegal sources in to legal money
c) keeping the money in currency chests
d) sending excess cash to the other branch
e) none of the above
10. Reserve Bank of India was established on 1st April, ______in accordance with the provisions of Reserve Bank of India
act_________
a) 1935 1934
b) 1934-1935
c) 1935-1936
d) 1937-1938
e) all the above
Answers:
1. b
2. a
3. d
4. a
5. d
6. e
7. d
8. a
9. b
10. a

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Banking Pathway: Banking Awareness Quiz


1. IFSC in a cheque means:
a) Indian Financial System Code
b) It has 11 digits alpha numeric
c) First 4 digits represent Bank Name

d) This code is used in remitting funds through RTGS and NEFT


e) All the above
2. "Hundi" is a
a) Draft
b) Cheque
c) Bill of exchange
d) Promissory note
e) None of these
3. Banking Industry has been declared as public utility service for purpose of
a) Negotiable Instruments ACT, 1881
b) Reserve bank of India Act, 1934
c) Banking regulation Act, 1949
d) Industrial Disputes Act
e) None of these
4. Bank would prefer to mobilize deposits under Savings Bank accounts, because:
a) Account holders will be motivated to save since savings account offer interest also
b) It is a low cost deposit for the bank and banks can profitably deploy such funds
c) Banks want to inculcate the savings habit among the public
d) All of the above
e) None of the above
5. Basic Objective of SEBI is/are:
a) To promote the interests of investors in securities
b) To promote the development of Securities Market
c) To regulate the securities market
d) To protect the interest of the investors to improve the stock market investments
e) All of the above
6. Customer Day in the bank is on and customers are allowed to meet the top officials of the bank on this day in
every month:
a) 5th
b) 10th
c) 15th
d) 30th
e) Any of the above dates
7. "Allonge" is
a) A piece of paper for making endorsements
b) A piece of paper attached to a negotiable instrument for making available more space for further endorsements
c) Both a and b
d) Duplicate DD issued to a customer
e) Bill payable after sight
8. NEFT is useful because:
a) The remitter need not send the physical cheque or Demand Draft to the beneficiary.
b) The beneficiary need not visit his/ her bank for depositing the paper instruments
c) The beneficiary need not be apprehensive of loss/ theft of physical instruments or the likelihood of fraudulent encashment
thereof
d) Cost effective
e) All the above
9. Mutual Fund Scheme that operates continuously without any limit entry for subscriptions and redemptions is:
a) Fixed Income
b) Specific Fund
c) Close Ended
d) Open Ended
e) Mixed Fund
10. PAN number is required for all transactions above:
a) Rs. 25,000
b) Rs. 50,000
c) Rs. 1 lakh

d) Rs. 10 lakh
e) No such restriction
11. Banking Ombudsman services are available to:
a) All Scheduled Commercial Banks
b) Regional Rural Banks
c) Scheduled Primary Co-operative Banks
d) Only a & c
e) All the above
12. An asset, including a leased asset, becomes non-performing when:
a) It ceases to generate income for the bank
b) A performance Guarantee issued by the bank on behalf of the borrower is invoked
c) It is rendered useless due to wear and tear or its becoming obsolete
d) The borrower dies
e) None of the above
13. Counter guarantee means a guarantee obtained:
a) By bank from customers on whose behalf the banks have to issue guarantees in favour of third parties, such as
government department, Public bodies, Corporations etc.
b) By banks from ECGC covering export risk
c) By banks from the beneficiary of the guarantee in whose favour the guarantee is to be issued
d) A guarantee issued to the guarantor
e) None of the above
14. Which of the following statements is correct about banks?
a) Banks cannot accept demand and time deposits from public.
b) Banks can accept only time deposits from public.
c) Banks can accept both demand and time deposits from public.
d) Banks can accept demand and time deposits only from government.
e) None of the above
15. The RBI issued the following guidelines for effective Asset Liability Management System
a) Bank should set up an internal Asset Liability Committee
b) The committee should be headed by CMD or ED
c) The Management committee of the Board should oversee implementation of the system
d) Decision of ALCO is to be implemented in letter and spirit
e) All of the above

Answers:
1) e
2) c
3) d
4) d
5) e
6) c
7) b
8) e
9) d
10) b
11) e
12) a
13) a
14) c
15) e
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1.

Which of the following was the reasons owing which base rate was introduced?
(a) BPLR, system fell short of RBIs objective bringing transparency in lending rates
(b) Under BPLR system it was difficult for RBI to access transmission of policy rates.

(c) BPLR system was not beneficial to the customers


(1) Only (A)
(2) Only (B)
(3) Only (A) & (B)
(4) Only (B)& (C)
(5) All, (A) & (B) & (C)
2. Real Time Gross Settlement System means a payment system in which
(a) both processing and final settlement of funds transfer instructions can take place continuously
(b) final transaction takes place at the end of the day
(c) final payment is physically effected within 24 hours
(d) final settlement of funds take place at 3 PM daily
(e) none of the above
3. Effective from 15th April, 1980, how many banks with demand and time liabilities exceeding 200 crore were
nationalized?
(a) five
(b) four
(c) six
(d) ten
(e) None of these
4. Which of the following is the name of the organization specifically to develop small scale industrial sector in our
country?
(a) NABARD
(b) SEBI
(c) SIDBI
(d) AMFI
(e) None of the above
5. When was the first commercial bank in India, Hindustan Bank. Set up in Calcutta ( now Kolkata)?
(a) 1690
(b) 1770
(c) 1805
(d) 1890
(e) none of these
6. Which of the following types of ATMs eliminates the need for PIN early and authenticated customer transactions by
thumb impressions.
(a) while label ATMs
(b) Biometric ATMs
(c) On-site ATMs
(d) Off-site ATMs
(e) none of the above
7. A loan granted for short duration crops would be treated as NPA, if the instalment of principal or interest thereon
remains overdue for
(a) two crop seasons
(b) two quarters,
(c) two half- years
(d) whichever is less
(e) none of the above
8. Scheduled bank means a bank
(a) incorporated under the Companies Act, 1956,
(b) authorized to the Banking business,
(c) governed by the Banking Regulation Act, 1949,
(d) Included in the Second schedule to the Reserve Bank of India Act 1934
(e) All of the above
9. For filing and resolving customer complaints the banking Ombusdsman
(a) charges a fee of 500/(b) does not charge any fee
(c) charges a fee of 1500/(d) charges a fee of 1000/-

(e) none of these


10. Consider the following
1. international bank for reconstruction and development (IBRD)
2. international development association (IDA)
3. International finance corporation (IFC)
4. Multiateral investment guarntee agency (MIGA)
5. International center for settlement of investment disputes (ICSID)
which among the above constitute the world bank group?
(a) I only
(b) 1 and 2
(c) 1, 2 and 3
(d) 1, 2, 3 and 4
(e) 1, 2,3 4 and 5

Answers:
1. C
2. A
3. C
4. B
5. b
6. B
7. A
8. D
9. B
10. E
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2. OCTOBER 2015

Banking Awareness Quiz: Monetary Policy


1. Bank rate policy, open market operations, variable reserve requirements and statutory
liquidity requirements as measures of credit control are classified as
(a) Quantitative methods
(b) Qualitative methods
(c) Weighted average methods
(d) None of the above
(e)
both
(a)
and
(b)

2. Which of the following fall under the qualitative method of credit control adopted by RBI?
(a) Selective credit control
(b) Moral suasion
(c) Credit authorization scheme
(d) All of the above
(e) None of the above
3. In periods of boom, which leads to economic instability RBI resorts to
(a)Sale first class securities in its precession in the market, to reduce the supply of money as a measure of
open market operations
(b) Buying of approved securities in the market as a measure of open market operation
(c) Like in the bank rate as is measure of open market operations
(d) None of the above
(e) All of the above
4. Cash reserve ratio is maintained in the form of
(a) Government securities
(b)Balance with RBI
(c) Balance with state bank of India
(d) All of the above
(e) None of the above

5. Which is the authority in India for effecting changes in the cash reserve ratio and statutory
liquidity ratio?
(a) Government of India
(b) RBI
(c) Indian banks Association
(d) CRR and SLR association
(e) None of the above
6. Bank rate means
(a) The rate of interest charged by the bank on advances
(b) The rate of interest paid by banks on the deposits
(c) The standard rate at which the RBI is prepared to buy or to rediscount eligible bills of exchange or other
commercial papers of commercial banks
(d) None of the above
(e) All of the above
7. In the opinion of the Governor of Reserve Bank of India, which one of the following is the
reason owing to which Indias inflation is accelerating?
(a) Excess liquidity in market
(b) Speculation in essential goods
(c) Higher food Cost
(d) Commodities futures
(e) None of these
8) When Reserve Bank intends to increase credit by the banking system, it
(a) Reduces the bank rate
(b) Raises the bank rate
(c) Freezes the bank rate
(d) None of these
(e) All of these
9) What does the term Open Market Operations refer to?
(a) Selling of equities in the open market
(b) Selling of commodities in the open market
(c) Buying and selling of government securities in the open market
(d) Buying and selling of products in the wholesale market
(e) None of these
10) ______is the percentage of total deposits of a bank which it has to keep with itself in the form
of liquid assets.
(a) Statutory Liquidity Ratio (SLR)
(b) Cash Reserve Ratio (CRR)

(c) Statutory Reserve Ratio


(d) Cash Ratio
(e)

Answers -1) a
2) d
3) a
4) b
5) b
6) c
7) a
8) a
9) c
10) a

None

of

these

1.
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Banking Awareness Quiz: Currency


1. Who decided on the quantity of coins to be minted?
(1) The Government of India
(2) RBI
(3) Either 1 or 2
(4) All of the above
(5) None of the above
2. Which of the following methods is currently used in India to issue note?
(1) Fixed Fiduciary System
(2) Maximum Fiduciary System
(3) Roportional Reserve System
(4) Percentage Reserve System
(5) Minimum Reserve System
3. On march 1,1992, Reserve Bank of India announced a new system of exchange rates known as
(1) partial convertibility
(2) liberalized exchange rate system
(3) Either 1 or 2
(4) Both a and b
(5) Neither 1 nor 2
4. Which of the following statements is correct about soiled/mutilated note?
(1) All banks are authorized to accept soiled notes across their counters and pay the exchange vale
(2) Banks are expected to offer this service even to non-customers
(3) All public senor bank branches and currency chest branches of private sector banks are authorised to adjudicate and pay
value in respect of mutilated notes
(4) The RBI has also authorised all Commercial Bank branches to treat certain notes in two pieces as soiled notes and pay
exchange value
(5) All of the above
5. For issuing notes, RBI has required to hold the minimum reserve of Rs. 200 crore of which not lesss than Rs.
crore to be hold in gold.
(1) 85
(2) 100
(3) 115
(4) 125
(5) 200
6. Under which Section of the Reserve Bank of India Act, the Reserve Bank has the sole right of note issue?
(1) 20
(2) 22
(3) 25
(4) 28
(5) 30
7. At present, the RBI issue notes in the denominations of Rs
(1) 1, 2, 5, 10, 20, 50, 100 and 500
(2) 1, 2, 5, 10, 20, 50, 500 and 1000
(3) 2, 5, 10, 20, 50, 100, 500 and 1000
(4) 2, 5, 10, 20, 50, 100, 1000 and 10000 only
(5) 5, 10, 20, 50, 100 and 500
8. The one-rupee note bears the signature of ____________.
(1) RBI Governor
(2) Deputy Governor
(3) Finance Secretary
(4) Finance Minister
(5) None of these
9. Any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable is a/an

(1) mutilated note


(2) imperfect note
(3) soiled note
(4) mismatched note
(5) none of these
10. In India, which among the following is/are a part of Legal Tender Money?
(1) Both coins and currency notes
(2) Both coins and bank drafts
(3) Both currency notes and SDRs
(4) Only currency notes issued by RBI
(5) None of these
Answers

1-A
2-E
3-D
4-E
5-C
6-B
7-C
8-c
9-B
10-A

1.
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Banking Awareness Quiz: Mutual Funds


1. The term Mutual Fund refers to
(a) the business of acquisition, holding, management, trading or disposal of securities, participation certificated or any other
instruments, income or growth participation business and unit trust scheme.
(b) fund created by commercial banks for trading in shares
(c) fund created by an enterprise to meet out super animation liability of the enterprise
(d) none
(e) all
2. Which of the following is the first commercial bank who had launch a mutual fund?
(a) State bank of India
(b) Canara bank
(c) Indian bank
(d) Bank of India
(e) Indian overseas bank
3. Which of the following statement about Mutual funds are correct?
(a) Distribution of any income in advance on a monthly basis or otherwise is not permitted
(b) Mutual funds are listed in stock exchanges
(c) Lock in period for repurchase of units should not be more than 36 years
(d) all
(e) none
4. The main function of Mutual funds are
(a) collection of funds from a large number of investors
(b) Investment of funds so collected in capital markets
(c) Holding investment in trust, and to diversify the risk in the investment, proper management of portfolio with an object to
optimize the returns
(d) all
(e) none
5. An open ended fund means
(a) The fund exists for perpetuity. There is no ceiling on the amount to be collected or raised
(b) Investors are assured of dividends, capital appreciation and safety of their investment
(c) A repurchase facility close to net asset value (NAV)
(d) All

(e) None
6.A close-ended fund means
(a) The corpus is of fixed size with a definite redemption period
(b) Listing on stock exchanges provides easy liquidity
(c) The market price is always below the net asset value
(d) All
(e) None
7.An offshare fund is
(a) a fund established outside the country
(b) a mutual fund which is stipulated at sea shore
(c) a fund meant for development of oceans and sea shores
(d) none
(e) all of these
8.Mutual funds are vehicles for collective investment that pool the savings of many investors for
(a) Investment in securities, according to stated objective and the profits are shared equally among its participants in
proportion to their holdings
(b) It brings together the investors who have surplus money to invest corporate entities who need the money to their projects
(c) the fund collects money from the members and invests them in diversified portfolio of financial assets
(d) All
(e) None
9. Which of the following organizations is the Mutual Fund Market regulator?
(a) AMFI
(b) SEBI
(c) CIBIL
(d) CRISIL
(e) RBI
10. In the term called as AMFI, what do you mean by M?
(a) Mutual
(b) money
(c) Managing
(d) Miscellaneous
(e) none of the above
Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10. (a)

(a)
(a)
(d)
(d)
(d)
(d)
(a)
(d)
(b)

1.
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Banking Awareness Quiz: Miscellaneous


1. Tele banking is attracting the fancy of urban customer due to
(a) non-availability of time to visit bank branches
(b) transport bottlenecks
(c) traffic jams
(d) All
(e) none
2.Which of the following was set up as a exclusive data communication network for banks in terms of
recommendations of committee on communication network of banks?

(a) BANKNET
(b) SWIFT
(c) MICR
(d) All
(e) none
3.What is international banking?
(a) Providing of variety of financial services to the customers who are living outside their home country
(b) Providing of financial services to the customers who are living in home country
(c) Banking between two countries
(d) all
(e) none
4. Which of the following are intermediaries are not working for Banks?
(a) Direct sales agents
(b) Automatic dealers
(c) Whole sellers
(d) Merchant establishments
(e) none of the above
5. In banking services, which are the major characteristics affecting the channel selection
(a) Intangibility
(b) Inseparability
(c) Variability
(d) Perish ability
(e) all of these
6. CBS stands for
(a) Core Banking solution
(b) Centralised based system
(c) Computer based system
(d) all of the above
(e) none of the above
7. What are the various facilities offered by banks through tele banking?
(a) Balance enquiries
(b) Enquiries about collection or specific credits/debits transaction
(c) Transfer of funds
(d) Request for statement of accounts
(e) all
8. What do you mean by home banking?
(a) Home banking is an extended version of tele banking
(b) in home banking the customer is able to access his personal account from his home for availing a variety of services
which is made available.
(c) home banking is availed through the customers personal computer attached to a telephone line and modem
(d) all
(e) none
9. Digital signature are
(a) legally valid signatures as per the information technology act. 2000 and acceptable in Indian courts at par with paper
signatures
(b) required for authentication of e-mail and SFMS
(c) required for authentication of settlement applications of clearing coupan of India Ltd.
(d) all
(e) none
10. ................. is Indias largest Wide Area Network.
(a) Bank Net
(b) INET
(c) RBINET
(d) NICNET
(e) None of these
11. Banks do not purchase/ discount
(a) Documentary Bills

(b) Clean Bills


(c) Both (a) and (b)
(d) Accommodation Bills
(e) Usance Bills
12. Bancassurance means
(a) Distribution of Insurance policies both life and non-life, by banks as corporate agents through their branches.
(b) Assurance given by banks to its customers
(c) Life policy issued to the bank on the life of their staff
(d) Assurance given to bank by general insurance companies for insuring assets of the banks.
(e) None of the above
13. Insurance business in India is regulated by
(a) Life Insurance Corporation of India
(b) Reserve Bank of India
(c) Insurance Regulatory and Development Authority (IRDA)
(d) SEBI
(e) Insurance Companies Act
14. Insurance Regulatory and Development Authority
(a) is a society registered under the societies Registration Act
(b) is a company registered under the Companies Act. 1956
(c) is a NGO
(d) was constituted by an act of parliament under the IRDA Act. 1999
(e) is a special wing of Ministry of Finance. Govt. of India
15. Full form of ERNET is .....................
(a) Englands Remote Network
(b) Engineering and Research Network
(c) Educational and Research Network
(d) External and Regular Network
(e) None of the above
Answers
1.d
2.a
3.a
4.c
5.e
6.a
7.e
8.d
9.d
10-d
11-d
12-a
13-c
14-d

1.
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Banking Awareness Quiz (Based on lending)


1. Collateral securities can be _____?
(a) Tangible
(b) Intangible in the shape of personal guarantee of a third party
(c) security given to get credit facilities/loan
(d) All of the above
(e) None of the above
2. The Short-Term Crop Loan given to Farmers are generally for a period of _____?
(a) 3 months
(b) 6 months

(c) 9 months
(d) 12 months
(e) 15 months
3. Which of the following is a borrowing facility/loan advance _____?
(a) Term finance
(b) Performance guarantee
(c) Bill received under letter of credit
(d) All the above
(e) None of the above
4. Pledge of advance is made against ______?
(a) Gold
(b) Commodities
(c) Coins and notes
(d) All the above
(e) None of the above
5. Which of the following are covered under pledge?
(a) Actual delivery of the goods
(b) Factory type pledge
(c) Constructive delivery of the goods
(d) All the above
(e) None of the above
6. What is the minimum period of medium and long-term loans?
(a) 12 months
(b) 18 months
(c) 24 months
(d) 36 months
(e) None of the above
7.Which of the following is/are true about the Sub-Prime Crisis- a term which was in the news
recently?
(1) It is a Mortgage crisis referring to Credit default by the borrowers.
(2) Sub-Prime borrowers were those borrowers who were rated low and were high risk
borrowers.
(3) This crisis originated out of negligence in credit rating of the borrowers.
(a) Only 1
(b) Only 2
(c) Only 3
(d) All of the above
(e) None of the above
8. NABARD re-finance is available to ______?
(a) Regional Rural banks
(b) Commercial banks
(c) State Co-operative banks
(d) Land Development bank
(e) All of these
9.Identify which among the following is not considered a Consumer loan product offered by
Banks in India?
(a) Personal Loan
(b) Car Loan
(c) Consumer Durable Loan
(d) Bank Overdraft
(e) Home Loan
10. The most risky charge from a bankers point of view is ______?
(a) Pledge
(b) Hypothecation
(c) Mortgage
(d) Lien
(e) None of the above

11. An equitable mortgage can be created in respect of _______?


(a) Government securities
(b) Real estate
(c) Wheat in a godown
(d) Life Policies
(e) None of the above
12.A charge where there is neither the transfer of ownership nor the possession is called ______?
(a) Hypothecation
(b) Lien
(c) Pledge
(d) Mortgage
(e) None of the above
13.The liability of the mortgager is gradually reduced in the case of _______?
(a) Equitable mortgage
(b) Legal mortgage
(c) Usufructuary mortgage
(d) Conditional mortgage
(e) None of the above
14. These days Banks are offering Loans against Property? Under which business segment, this
activity may be categorized?
(a) Corporate Banking
(b) Personal Banking
(c) Merchant Banking
(d) Portfolio Management services
(e) None of the above
15. What do we mean by ECB in financial terms?
(a) Essential Commercial Borrowings
(b) Essential Credit & Borrowings
(c) External Credit & Business
(d) External Commercial Borrowings
(e) None of the above

Answers

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15. d

d
d
a
b
d
b
d
e
d
b
b
a
c
d

1.
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Banking Awareness Quiz (Financial Market)


1. A government security is generally issued in the form of
(a) Stock certificates
(b) Bearer bonds
(c) Promissory notes

(d) all
(e) none
2. Which of the following is not included in govt. securities?
(a) Promissory notes
(b) Debentures
(c) Bearer bonds
(d) all
(e) none
3. A bearer bond can be transferred by
(a) Endorsement
(b) Transfer deed
(c) Endorsement and deliver
(d) mere delivery and no other formalities are required
(e) none
4. Bankers are not supposed to grant advances against
(a) Third party shares
(b) Partly paid shares
(c) Preference shares
(d) Equity shares
(e)all
5. Certificate of deposit can be subscribed by
(a) individuals
(b) corporate companies
(c) Trusts, funds, association e.t.c
(d) ( a) and (b)
(e) all of (a) to (c)
6. The instrument of capital market are
(a) equity shares, preference shares, non-voting equity shares
(b) debentures (i.e. convertible, non-convertible, zero coupon bonds etc
(c) company fixed deposit
(d) units of mutual funds
(e) all
7. Capital market refers to all the facilities and institutions arrangements for
(a) borrowing
(b) lending
(c) medium and long term funds
(d) all
(e) none
8. Capital market is described as market for
(a) short term funds
(b) medium and long term funds
(c) Both (a) and (b)
(d) all
(e) none
9. Capital market can be divided into
(a) Industrial securities market
(b) Gilt edged market
(c) Personal securities market
(d) Both (a) and (b)
(e)none
10. Which of the following are the role functions of capital market?
(a) Mobilization of savings and acceleration of capital formation raising of long term capital
(b) Promotion of industrial growth
(c) Ready and continuous market for proper channelisation of funds
(d)Provision of variety
(e) all

11. The gilt-edged securities refer to


(a) Securities which gilters
(b) Securities or investment, where the risk is nominal or zero in regard to payment of principal and interest
(c) Shares of blue chip companies
(d) (b) and (c)
(e) None of the above
12. Who are the major players in the call money markets?
(a) Banks
(b) Insurance companies
(c) Development Financial Institutions
(d) Selected Mutual Funds
(e) All of the above
13. What is time limit for funds to be transacted in call money market?
(a) One day
(b) Twelve hours
(c) Morning 6O clock to Evening 6O clock O
(d) over night basis
(e) Two days
14. Who issues treasury bills?
(a) Reserve Bank of India, as the agent of the Central Government
(b) Any Govt. deptt. of State and Central
(c) Any Commercial Bank
(d) All of the above
(e) None of the above
15. Commercial paper is
(a) fully secured instrument
(b) unserved money market instrument
(c) partly secured paper
(d) All of the above
(e) None of the above
Answers
1. d
2. b
3. e
4. b
5. e
6. e
7. d
8. b
9. d
10. b
11. b
12. e
13. d
14. a
15. b

1.
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IBPS PO Mains: Banking Awareness Quiz (Priority Sector Lending)


1. The Indian banks who are not able to fulfill the target of 18% for agricultural sectors, are to
(a) deposit the short fall to the Reserve bank of India
(b) deposit the short fall amount with NABARD under RIDF
(c) deposit the short fall with SIDBI under National equity fund
(d) deposit with Government of India
(e) none

2. What do you mean by Priority sector?


(a) Priority sector means a group of activities which are to be financed on the priority
(b) A group of borrowers, from whom, recovery to be made on priority basis
(c) A group of peoples, whose accounts to be opened on priority
(d) All
(e) None
3. The concept of priority sector was formalized in 1972 by
(a) Study group constituted in May 1971
(b) Study group constituted in July 1972
(c) Talwar Committee
(d) Padamanabham Committee
(e) None
4. At present, priority sector broadly comprises the following
(a) Agriculture
(b) Small scale industries
(c) Other activities/borrowers such as small business, retail trade, small transport operators, professional and self employed
persons, housing ,education loans, micro credit e.t.c
(d) All of the above
(e) None of the above
5. As per the guidelines Reserve Bank of India, the total interest charged/debited to an account should not exceed
the principal amount in respect of short-term agriculture advances granted to
(a) Small farmers
(b) Marginal farmers
(c) Small and marginal farmers
(d) Landless labourers
(e) All
6. An overdraft means
(a) Allowing advance against the security of merchandise
(b) Allowing the party to overdraw his account
(c) Credit facility to a party for his short term requirement
(d) All
(e) None
7. Bank can provide finance to transport operations for the purchase of
(a) Trucks, matadors
(b) Buses
(c) Taxis and auto rickshaws
(d) Any of these
(e) None
8. Under the education loan scheme devised by Reserve bank of India?
(a) Repayment of loan will commence after two years of completion of course or six month after getting job, whichever is
earlier
(b) Total repayment period including holiday period should not exceed five years from the date of completion of course
(c) Undertaking to repay the loan in the stipulated manner is to be executed by the students
(d) All
(e) None
9. For foreign banks, operating in India, overall target for priority sector lending is
(a) 32%
(b) 42.75%
(c) 33%
(d) 40%
(e) 50%
10. The limit under cash credit facility is worked out on the basis of
(a) Crops to be cultivated and cropping intensity
(b) Area under cultivation and irrigation facilities available
(c) Scale of finance for the concerned crops
(d) All

(e) None
11. Consumption loan above under priority sector can be granted to
(a) Rural artisans
(b) Small/Marginal farmers
(c) Landless labourers
(d) All
(e) None
12. Which of the following statement is correct about kisan credit card?
(a) The rate of interest on kisan credit cards should be same as applicable to crop loans
(b) Banks may provide kisan credit cards to farmers who are eligible for sanction of crop loans without any floor limit
(c) Credit would be available in the form of revolving cash credit normally valid for three years
(d) All
(e) None
13. What role does Micro, small and Medium Enterprises(MSMEs) play in a countrys economic and industrial
development?
(A) They have the capacity to absorb skilled and unskilled labour available in the country.
(B) Such institutions help in distribution of income in a wide spectrum and do not allow it to get concentrated in few hands or
in few areas.
(C) They help in eradication of poverty by providing self employment opportunities.
(a) Only A
(b) Only (B)
(c) Only C
(d) Only A and C
(e) All A, B and C
14. Which of the following organization prepares rural credit plans on annual basis for all districts in India, which is
turn form the base for annual credit plans of all rural financial institutions?
(a) SIDBI
(b) NABARD
(c) RBI
(d) Indian banks association
(e) CII
15.The approach of micro-credit or banking with the poor is comparatively a new concept in the field of rural
credit. This approach has been tried very successfully in which of the following countries?
(a) Bangladesh
(b) India
(c) China
(d) Japan
(e) None of these
Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15. a

1.
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b
a
a
d
c
b
d
b
a
d
d
d
e
b

IBPS PO Mains: Banking Awareness Quiz (Miscellaneous)


1. Which of the following training establishment is not run by Reserve Bank of India?
(1) Bankers Training College, Bombay
(2) College of Agricultural Banking, Pune
(3) NIBM
(4) All of the above
(5) None of the above
2. The term Ways and Means advances refers to
(1) the advances allowed under DRI Scheme by commercial banks
(2) the advances allowed by commercial banks under Twenty Point Economic Programme
(3) The temporary advances made to the government by its banners to bridge the interval between expenditure and the flow
of receipts of revenues
(4) All of the above
(5) none of the above
3. Which of the following do not fall within the functions of the Reserve bank of India?
(1) Regulation of currency
(2) Control of credit
(3) banker to the Government, bankers bank and lender of the last resort
(4) Accepting deposits and making loans and advances to public
(5) none of the above
4. Open market operations are employed by Reserve Bank of India
(1) to control the reserve base of banks
(2) to minimize fluctuations in money supply
(3) as an adjunct to the bank rate to make it function more effectively
(4) All of the above
(5) None of the above
5. Which of the following is the authority for effecting changes in the Cash Reserve Ratio and Statutory Liquidity
Ratio?
(1) Reserve Bank of India
(2) Indian Banks Association
(3) Government of India
(4) IDBI
(5) None of the above
7. Banking Regulation Act, 1949, does not at all apply to
(1) nationalized banks
(2) State Bank of India and its subsidiaries
(3) foreign banks having branches in India
(4) primary agricultural credit societies and co-operative land mortgage banks
(5) none of the above
8. What are the benefits of Core Banking solutions?
(1) Benefit of not carrying the cash from one place to another
(2) Depositing money anywhere in the country where the bank is present
(3) Instant updating of the accounts
(4) All of the above
(5) none of the above
9. Organised sector refers to
(1) Nationalised banks and private sector banks
(2) Regional Rural Banks, Cooperative Banks and Development Banks
(3) Both 1 and 2
(4) None of the above
(5) all of the above
10. Unorganised sector includes
(1) Moneylenders, indigenous bankers
(2) Power brokers, traders, etc.
(3) Non-banking financial companies which do not fulfil the criteria notified by the Reserve Bank of India
(4) all of the above
(5) None of the above

11. Banking is defined under


(1) Negotiable Instrument Act, 1881
(2) Banking Regulation Act, 1949
(3) Reserve Bank of India Act, 1935
(4) nowhere, it is defined
(5) Both 1 and 2
12. Savings bank accounts are generally opened by
(1) firms
(2) companies
(3) association of persons
(4) individuals
(5) none of these
13. As per the directives of Reserve bank of India, Notice deposit shall mean
(1) the deposit withdrawable at the will of the depositor
(2) the deposit repayable only after the bank gives notice to the depositor
(3) term deposit for specific period but with drawable on giving at least one complete banking days notice
(4) none of the above
(5) all of the above
14. Time deposits are payable by the bank
(1) on due date
(2) on demand
(3) after one year
(4) after 63 months
(5) none of these
15. A Foreign Currency (non-resident) accounts means
(1) a foreign currency account maintained at a foreign center by a person resident in India
(2) A US $ account maintained in India by a foreigner
(3) an account maintained by a non-resident individual of Indian nationality or origin (NRI) with an authorized dealer in India
in a designated foreign currency
(4) All of the above
(5) None of the above
Answers
1. 3
2. 3
3. 4
4. 4
5. 1
7. 4
8. 4
9. 3
10. 4
11. 2
12. 4
13. 3
14. 1
15. 3

1.
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IBPS PO Mains: Banking Awareness Quiz (RTGS, NEFT and


Miscellaneous)

1. RTGS stands for


(a) Real Time Gross Settlement
(b) Real type General scheme
(c) Real Type gross settlement system
(d) Real time Gross system
(e) None of these
2. Real time gross settlement system means a payment system in which
(a) Both processing and final settlement of funds transfer instructions can take place continuously
(b) Final transaction takes place at the end of the day
(c) Final payment is physically effected within 24 hrs.
(d) Final settlement of funds take place at 3 PM daily
(e) None of these
3. Reserve bank of India, in regard to RTGS, has decided that
(a) There would be accessible to all retail customers.
(b) There would be no floor ceiling for routing transactions through RTGS
(c) Settlement of transactions of the clearing corporations of India and the stock market would be conducted
through RTGS.
(d) All of the above
(e) None of these
4. The society for world-wide inter-bank financial telecommunication (SWIFT)
(a) was registered as a company in Belguim
(b) is a bank-owned non-profit co-operative society
(c) became operational in May 1977
(d) all of the above
(e) none of these
5. How many banks in India have joined the international telecommunication network of SWIFT?
(a) 249
(b) 46
(c) 28
(d) 19
(e) 27
6. The commercial banking system in India comprises of
(a) Scheduled and non-scheduled banks
(b) Nationalised banks and private sector banks
(c) Regional rural banks, cooperative banks
(d) Land development banks
(e) None
7. Scheduled bank refers to a bank
(a) Authoriesd by central government to transaction government business
(b) Registered with ministry of finance, Govt. of India
(c) Which is included in the second schedule to the RBI act, 1934
(d) Incorporated as a cooperative society
(e) None
8. Enumerate the main functions of a banker as per banking regulations act. 1949?
(a) Accepting deposit of money
(b) Advancing of loans
(c) Issuance of letters of credits
(d) All
(e) None

9. The SecuritisationAnd Reconstruction of Financial Assets and Enforcement of Security


Interests Act (SARFAESI Act) at present, is not applicable to
(a) Public Sector Banks
(b) Financial Institutes of the Govt.
(c) Private Banks
(d) Non Banking Financial Companies
(e) Small & Cooperative Banks
10. "Sub Prime lending" is a term applied to the loans made to
(a) Those borrows who do not have a good credit history
(b) Those who wish top take loan against the mortgage of tangible assets
(c) Those who have a good credit history and are know to bank since 10 years
(d) Those borrowers who are most preferred customers of the bank
(e) None of these
Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9. d

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a
a
d
b
b
a
c
d

IBPS PO

Mains: Banking Awareness Quiz (Monetary Policy)

1. Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements as
measures of credit control are classified as
(a) Quantative methods
(b) Qualitative methods
(c) Weighted average methods
(d) none
(e) both (a) and (b)
2. Which of the following fall under the qualitative method of credit control adopted by RBI?
(a) Selective credit control
(b) Moral suasion
(c) Credit authorization scheme
(d) all
(e) none
3. In periods of boom, which leads to economic instability RBI resorts to

(a) Sale first class securities in its precession in the market, to reduce the supply of money as a measure of open market
operations
(b) buying of approved securities in the market as a measure of open market operation
(c) like in the bank rate as is measure of open market operations
(d) none
(e) all
4. Which among the following does the RBI not decide?
(a) CAR
(b) CRR
(c) Base Rate
(d) Bank Rate
(e) None of these
5. Which among the following is an instrument of monetary policy used by the RBI?
(a) Base Rate
(b) PLR
(c) CRR
(d) BPLR
(e) None of these
6. What does liquidity mean?
(a) It means how cash is converted into gold
(b) It means how cheaply and quickly an asset is converted into cash
(c) It means how cash is converted into SDR (Special Drawing Rights)
(d) It means how uncertain the money market conditions are
(e) None of these
7. What does the term Open Market Operations refer to?
(a) Selling of equities in the open market
(b) Selling of commodities in the open market
(c) Buying and selling of government securities in the open market
(d) Buying and selling of products in the wholesale market
(e) None of these
8. RBI has introduced Marginal Standing Facility with the objective of
(a) Controlling Inflation
(b) Containing instability in long term inter-bank rates
(c) Containing instability in the overnight inter-bank rates
(d) All of the above
(e) None of these
9. ______is the percentage of total deposits of a bank which it has to keep with itself in the form of liquid assets.
(a) Statutory Liquidity Ratio (SLR)
(b) Cash Reserve Ratio (CRR)
(c) Statutory Reserve Ratio
(d) Cash Ratio
(e) None of these
10. Often, we read in newspapers that the RBI has changed the Repo rate and the Reverse Repo rate by a few basis
points. What is a basis point?
(a) Ten % of one hundredth point
(b) One hundredth of 1%
(c) One tenth of 1%
(d) Ten % of 100
(e) None of these
11. RBI isnt expected to perform the role of
(a) Acting as a clearing house
(b) Working as a banker to the government
(c) Managing forex
(d) Accepting deposits from general public
(e) None of these
12. When RBI sells government securities, its result is that
(a) The liquidity in the banking system increases

(b) The liquidity in the banking system remains unchanged


(c) The liquidity in the banking system gets diminished
(d) None of the above
(e) None of these
13. Which of the following is not an instrument in the hands of the RBI to check inflation in our country?
(a) Open Market Operations (OMO)
(b) Special Drawing Rights
(c) Bank Rate (BR)
(d) Cash Reserve Ratio (CRR)
(e) None of these
14. LAF is an indirect instrument of monetary policy, which is used by \RBI to regulate the liquidity in banking
system. LAF stands for:
(a) Liquidity Adjustment Facility
(b) Liquidity Account Facility
(c) Liquidity Allotment Facility
(d) Long Adjustment Facility
(e) None of these
15. Bank rate is defined as the
(a) Rate of interest charged by commercial banks from borrowers
(b) Rate of interest at which RBI lends money to banks against government securities
(c) Rate of interest allowed by commercial banks on their deposits
(d) Rate at which RBI purchases or rediscounts bills of exchange of commercial banks
(e) None of these
Answer:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15. d

a
d
a
c
c
b
c
c
a
b
d
c
b
a

1.
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IBPS PO Mains: Banking Awareness Quiz (Miscellaneous)

1. Which of the following is/are true about the Sub-Prime Crisis- term which was in the news recently?

(1) It is a Mortgage crisis referring to Credit default by the borrowers.


(2) Sub-Prime borrowers were those borrowers who were rated low and were high risk borrows.
(3)
This
crisis
originated
out
of
negligence
in
credit
rating
of
(a) Only 1
(b) Only 2
(c) Only 3
(d) All of the above
(e) None of the above
2. High rate of investment may ____?
(a) Reduce the amount of credit creation
(b) Create better chance for the credit creation
(c) Not affect the amount of credit in any way
(d) Lead to any of the above-mentioned occurrences
(e) None of the above
3. For which are the reserves maintained before the following?
(a) One rupee notes
(b) One rupee coins
(c) All notes and coins
(d) RBI notes
(e) None of the above
4. The monetary base for credit expansion consists of _____?
(a) The total value of high-powered money
(b) The demand and time deposit liabilities
(c) The size of the deficit in the governments budget
(d) All of these
(e) None of the above
5. A rise in the reserve ratio of banks ____?
(a) Will lead to an increase in the money supply
(b) Will lead to a proportionate increase in the money
(c) Will lead to a decrease in the money supply
(d) Will lead to increase in cost of deposits
(e) None of the above
6. Which of the following is a borrowing facility/loan advance?
(a) Term finance
(b) Performance guarantee
(c) Bill received under letter of credit
(d) All the above
(e) None of the above
7. What is the minimum period of medium and long-term loans?
(a) 12 months
(b) 18 months
(c) 24 months
(d) 36 months
(e) None of the above
8. Which bank does not belong to State Bank Group?
(a) State Bank of Indore
(b) Banaras State Bank
(c) State Bank of Bikaner and Jaipur
(d) State Bank of Patiala
(e) None of the Above
9. In order to safeguard the interest of the Bank, Cash credit accounts are closed ____?
(a) On the death of the agent
(b) On the death of the principal borrower
(c) On the death of the Managing Director of the company
(d) All of these
(e) None of the above

the

borrowers.

10. If all the banks in an economy are nationalised and converted into a monopoly bank, total deposit creation
____?
(a) Will increase
(b) Will decrease
(c) Will neither increase nor decrease
(d) All the above
(e) None of the above
Answers 1. D
2. B
3. D
4. A
5. C
6. A
7. B
8. B
9. B
10. C

1.
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BPS PO Mains: Banking Awareness Quiz (Financial Institutions)

1. Small Industries Development Bank, (SIDBI) was set up by an Act of parliament commenced operating on _____?
(a) January 1, 1990
(b) March 1, 1990
(c) April 1, 1990
(d) April 2, 1990
(e) None of the above
2. Small Industries Development Bank of India is wholly subsidiary of _____?
(a) RBI
(b) Exim Bank
(c) NABARD
(d) IDBI
(e) None of the above
3. The Industrial Finance Corporation of India was set up in _____?
(a) March 1948
(b) April 1948
(c) July 1948
(d) October 1948
(e) None of the above
4. The Industrial Finance Corporation of India provides loans to _____?
(a) Industries in public sector only
(b) Industries set up for export promotion
(c) Joint-stock companies in the public or private or joint sector or co-operative sector
(d) None of the above
(e) All the Above

5. Industrial Credit and Investment Corporation of India was set up in ______?


(a) 1948
(b) 1950
(c) 1951
(d) 1955
(e) None of the above
6. The State Financial Corporations have been set up under ______?
(a) State Financial Corporation Act, 1951
(b) Reserve Bank of India Act
(c) Banking Regulation Act
(d) Companies Act, 1956
(e) None of the above
7. The loans granted by SFCs are refinanced by ______?
(a) IDBI
(b) SIDBI
(c) RBI
(d) both (a) and (b)
(e) None of the above
8. NABARD provides refinance to ______?
(a) Scheduled commercial banks
(b) Co-operative banks
(c) Regional rural banks
(d) All the above
(e) None of the above
9. NABARD provides refinance assistance for ______?
(a) Promotion of agriculture
(b) Promotion of small scale industries
(c) Cottage and village industries
(d) All the above
(e) None of the above
10. The Export-Import Bank of India was set up in ______?
(a) July 1969
(b) April 1970
(c) January 1982
(d) April 1982
(e) None of the Above
11. Exim Bank also provides ______?
(a) Refinance facilities
(b) Consultancy and technology services
(c) Services of finding foreign markets for exporters
(d) All the above
(e) None of these
12. Exim Bank concentrates on ______?
(a) Medium-term financing
(b) Short-term financing
(c) Short and medium-term financing
(d) Short and long-term financing
(e) None of the above
13. Exim Bank extends facility of _____?
(a) Rediscounting of foreign bills of commercial banks
(b) Advisory services to the exporters
(c) Research and market surveys
(d) All the above
(e) None of the above
14. Regional Rural Banks were set up vide _____?
(a) Reserve Bank of India Act

(b) Regional Rural Banks Act, 1976


(c) NABARD Act
(d) Banking Regulation Act, 1949
(e) None of the above
15. Regional Rural Banks carry on normal banking business as defined in _____?
(a) Reserve Bank of India Act
(b) Banking Regulation Act, 1949
(c) Regional Rural Bank Act, 1976
(d) Companies Act, 1956
(e) None of the above
Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15. B

D
D
C
C
D
A
D
D
D
C
D
A
D
B

1.
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IBPS PO Mains: Banking Awareness Quiz (Miscellaneous)

1. A Sub-Committee of the Central Board of the Reserve Bank was constituted to study issues and concerns
in the MFI sector under the chairmanship of _____.
a) Ms Usha Thorat
b) Shri Y. H. Malegam
c) Ms Shyamala Gopinath
d) Shri Anand Sinha
e) None of the above
2. For a remittance of Rs 100,000 under NEFT how much maximum charges other than service tax can be
charged by a bank to the remitter?
a) Rs 5
b) Rs 25
c) Rs 50
d) Rs 5 per thousand
e) None of these
3. With effect from 1st July 2010, interest rates of Banks are linked to which of the following?
a) Base Rate
b) Benchmark Prime Lending Rate

c) Bank Rate
d) Repo Rate
e) None of the above
4. Action under Sarfaesi Act can be taken by a bank in respect of which of the following types of advances?
a) Only Standard Assets
b) Only Sub Standard Assets
c) All NPAs
d) All NPAs except loss accounts
e) All NPAs except sub standard accounts
5. Royal Bank of Scotland based in London opens an account with State Bank of India in Mumbai in Indian
Rupees. For SBI this account will be treated as_____.
a) Nostro account
b) Vostro account
c) Loro account
d) All of these
e) None of the above
6. Which of the following is correct regarding Operating Hours of NEFT?
a) NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week
days and six settlements from 8 am to 1 pm on Saturdays.
b) NEFT operates in batches of 2 hours each there are seven settlements from 9 am to 5 am on week days and five
settlements from 9 am to 1 pm on Saturdays.
c) NEFT operates in batches of one hour and two hour there are nine settlements from 9 am to 5 am on week days and
three settlements from 9 am to 12 pm on Saturdays.
d) 24*7
e) None of the above
7. For coverage under Priority Sector, how much maximum amount can be granted as educational loan for
education in India and education abroad?
a) Rs 10 lakh, Rs 20 lakh
b) Rs 10 lakh, Rs 10 lakh
c) Rs 4 lakh, Rs 10 lakh
d) Rs 7.5 lakh, Rs 15 lakh
e) None of these
8. Balance Sheet of a firm indicates which of the following?
a) Profit or Loss over a period.
b) Financial position of the unit over a period.
c) Financial position of the unit as on a particular date.
d) Position of assets and liabilities over a period of time.
e) None of the above
9. What is the maximum charge excluding service tax and time varying tariff that can be charged by a bank
for remittance of more than Rs 5 lakh through RTGS?
a) Rs 25
b) Rs 50
c) Rs 100
d) All of these
e) None of the above
10. As per RBI directives, the limit for not obtaining collateral security in case of advance to micro
and small enterprises is Rs______.
a) Rs 1 lac
b) Rs 2 lac
c) Rs 5 lac
d) Rs 10 lac
e) Rs 25 lac
11. In the case of agricultural advances, banks shall not obtain collateral security for loans up
to ________.
a) Rs 25,000
b) Rs 50,000
c) Rs 100,000
d) Rs 200,000
e) None of these

12. In case of short term production credit to farmers up to Rs 3 lac, what is the rate of interest subvention
for 2014-15?
a) 1.5%
b) 2.5%
c) 2%
d) 3%
e) None of the above
13. Interest on Saving Bank deposits is calculated on the basis of ____________with effect from 1st April
2010.
a) Daily Product basis
b) Minimum balance between 5th and last day of the month.
c) Minimum balance between 10th and last day of the month.
d) Monthly Product basis
e) None of the above
14. Which type of crossing restricts transferability of a cheque?
a) Special Crossing
b) Not Negotiable Crossing
c) Account Payee Crossing
d) Both (b) and (c) only
e) None of the above
15. Which of the following is not true about Equitable Mortgage?
a) It is created by Deposit of title deeds.
b) Title Deeds can be deposited by Mortgagor or his authorized agent.
c) Title Deeds can be deposited at Mumbai, Kolkata, Chennai or any other place notified by State Government.
d) It can be only in respect of property located in urban areas
e) None of the above
Answers.
1B
2A
3A
4C
5B
6. A
7A
8C
9B
10 D
11-C
12-C
13-A
14. C
15. D

1.
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IBPS PO Mains: Banking Awareness Quiz (Miscellaneous)

1. Co-operative banks are ____?


a) Private sector banks
b) Public sector banks
c) Joint-sector banks
d) All of the above
e) None of the above
2. Certificate of Deposit can be issued by _____?
a) Reserve Bank, NABARD and Exim Bank only
b) Commercial banks and term lending institutions
c) Scheduled commercial banks excluding regional rural banks
d) All the above
e) None of the above
3. The commercial paper can be issued by _____?
a) Corporates
b) Reserve Bank of India
c) IDBI
d) Every non-banking company
e) None of the above
4. The Stock Exchange Board of India was set up by a Special Act in ____?
a) 1988
b) 1989
c) 1987
d) 1990
e) None of the above
5. Demand deposits mean _____?
a) Deposits withdrawable on demand by the depositor
b) Current deposits
c) Fixed deposits
d) Short deposits
e) None of the above
6. What is Call Money?
a) Money borrowed and lent for overnight or a day
b) Money borrowed for more than a day but upto 3 days
c) Money borrowed for more than a day but upto 7 days
d) Money borrowed for more than a day but upto 14 days
e) None of the above
7. Time deposits means _____?
a) The deposits which are lent to bank for a fixed period
b) Time deposits include overdue fixed deposits
c) Time deposits do not include recurring deposits as well
d) Time deposits do not include deposits under Home Loan Account Scheme
e) None of the above
8. Fixed deposits are for the bank ____?
a) Demand liability
b) Fixed asset
c) Time liability
d) All of the above
e) None of the above
9. Which of the following acts as Regulators for Credit rating agencies in India?
a) RBI
b) NSDL
c) SEBI
d) SIDBI
e) None of the above
10. The banker has a lien on _____?
a) Bonds given for collection

b) Bonds given for safe custody


c) Bonds left by mistake
d) (a) and (b) together
e) None of the above
11. Muhammad Yunus is associated with Banking Industry and is acclaimed for his
contribution in the field of ____?
a) Micro-finance
b) Technological advancement
c) Consumer finance
d) Banking Reforms in Bangladesh
e) Low-cost housing
12. Companies which generally finance the early-stage, high-potential, high risk growth startup
companies are _______?
a) Micro-Finance companies
b) Venture Capital Funds
c) Corporate Financing Banks
d) Non-Banking Finance Companies
e) State Finance Corporations
Answers
1.
Private
2.
All
3.
4.
5.
Deposits
withdrawable
6.
Money
borrowed
and
7.
The
deposits
which
are
8.
9.
10.
Bonds
11.
12. Venture Capital Funds

sector
the
on
lent
lent
Time
given

demand
by
for
overnight
to
bank
for
for

banks
above
Corporates
1988
the
depositor
or
a
day
a
fixed
period
liability
SEBI
collection
Micro-finance

1.

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BPS PO Mains: Banking Awareness Quiz (Miscellaneous)

These Questions of Banking Awareness Quiz has been shared by AK Gupta Sir, Ex- Chief Manager,
Punjab National Bank.
1) A manufacturing enterprise will be classified as small enterprise, if original investment in
plant and machinery is up to____.
a) Rs 10 lakh
b) Rs 25 lakh
c) Rs 2 crore
d) Rs 5 crore
e) None of these

2) Validity period of a cheque is considered as three months as per provisions of which of


the following?
a) N I Act
b) R B I Act
c) Banking Regulation Act
d) As per practice
e) As per RBI guidelines
3) The maximum amount of compensation that can be awarded by an Ombudsman in case of
other than Credit Cards is restricted to____.
a) Rs 5 lakh
b) Rs 10 lakh
c) Rs 1 lakh
d) Rs 50 lakh
e) None of these
4) For the purpose of Asset Classification, what is the status of accounts, where outstanding
balance in the principal operating account is less than the sanctioned limit/drawing power, but
there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not
enough to cover the interest debited during the same period?
a) These accounts should be treated as 'out of order'.
b) These account should be treated as NPA.
c) These accounts will be treated as NPA only if these remain out of order for 6 months.
d) These accounts will be treated as Sub standard.
e) None of these
5) Which of the following accounts can be opened jointly with residents as well as non
residents?
a) Non Resident Ordinary
b) Non Resident External
c) Foreign Currency Non Resident Account
d) None of these
e) All of these.
6) In the case of banks, deposits are insured by which of the following?
a) Deposit Insurance Company Ltd.
b) National Deposit Insurance Company Ltd.
c) Deposit Insurance and Credit Guarantee Corporation Ltd.
d) Indian Deposit Insurance Company Ltd.
e) None of these
7) IFSC or Indian Financial System Code is a 11 digit alpha-numeric code that uniquely identifies
a bank-branch participating in the NEFT system. How many characters are alpha and how many
characters are numeric in the code?
a) first 4 alpha characters representing the bank, and the last 6 numeric characters representing the branch
and 5th character is 0.
b) first 4 alpha characters representing the branch and the last 6 numeric characters representing the bank
and 5th character is 0.
c) first 5 alpha characters representing the bank, and the last 6 numeric characters representing the branch.
d) first 5 alpha characters representing the bank, and the last 5 numeric characters representing the branch
and 6th character is 0.
e) None of these
8) Which of the following is not decided by RBI?
a) Repo Rate
b) Reverse Repo Rate
c) Bank Rate
d) Inflation Rate
e) MSF
9) Which of the following concept has been implemented with effect from 1st July 2010?
a) Benchmark Prime Lending Rate
b) Base Rate
c) Basis Rate
d) Bank Rate

e) LIBOR
10) Under NEFT, settlement takes place in how many batches on Monday to Friday and in how
many batches on Saturdays?
a) 12; 6
b) 6; 3
c) 9; 5
d) 11; 5
e) None of these
11) Foreign Currency Non Resident (Bank) account can be opened for a maximum period of _____.
a) 1 year
b) 3 year
c) 5 year
d) 7 year
e) None of these
12) Banks are required to reimburse to the customers, the amount wrongfully debited on
account of failed ATM transactions within a maximum period of ______.
a) 7 days from the date of receipt of customer complaint.
b) 7 working days from the date of receipt of customer complaint.
c) 7 working days from the date of wrong debit receipt of customer complaint.
d) 12 days from the date of receipt of customer complaint.
e) None of these
13) When advance is granted against Life Insurance Policy, charge is created by way of____.
a) Lien
b) Pledge
c) Hypothecation
d) Assignment
e) Mortgage
14) What rate of interest can be offered by banks in India on NRO term deposits?
a) As applicable in domestic term deposits.
b) As per Bank discretion.
c) As per Bank discretion subject to the condition that it cannot be higher than those offered by the
on comparable domestic rupee deposits.
d)
As
per
e) None of these.

bank
RBI.

15) RBI has advised banks to ensure that demand drafts of _______are issued invariably with
account payee crossing.
a) More than Rs 20,000
b) Rs 20,000 and above
c) Rs 50,000 and above
d) More than Rs 50,000
e) None of these
Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

D
E
B
A
E
C
A
D
B
A
C
B
C
C

15. B

1.
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IBPS PO Mains: Banking Awareness Quiz(Financial Institution)

1. Regional Rural Banks are classified under _____?


(a) Land Developments Banks
(b) Co-operative Banks
(c) Commercial Banks
(d) Public Sector Banks
(e) None of the Above
2. The chairman of Regional Rural Bank is appointed by _____?
(a) State Government
(b) Reserve Bank of India
(c) Central Government
(d) Sponsoring bank in consultation with NABARD
(e) None of the above
3. The issued capital of the Regional Rural Banks was to be subscribed as under___?
(a) Fifty per cent by Central Government
(b) Fifty per cent by State Government
(c) Thirty per cent by sponsoring bank
(d) All the above
(e) None of the above
4. Each Regional Rural Bank is managed by ____?
(a) Board of Directors
(b) Reserve Bank
(c) Sponsoring commercial bank
(d) None of the above
5. Regional Rural Banks have been permitted to pay % additional interest on ____?
(a) All deposits accounts except current deposits
(b) All deposits accounts including current deposits
(c) Saving account and time deposits of less than three years
(d) None of the above
6. Land mortgage banks are renamed since 1996-97 as ______?
(a) Land Development Banks
(b) Co-operative Central Banks
(c) NABARD
(d) Lead Bank
(e) None of the above
7. Micro Finance is a ______ stage of banking services?
(a) Introduction stage
(b) Saturation stage
(c) Research stage

(d) Decline stage


(e) None of the Above
8. The Objectives of the Kisan Credit Card is to provide
(1) adequate and timely support from the banking system to the farmers for their cultivation needs including purchase of
inputs in a flexible and cost effective manner
(2) finance for the short term credit requirements for crops, including purchase of agricultural inputs, such as seeds,
fertilizers, pesticides etc, and draw cash for their production needs
(3) term credit as also working capital for agriculture and allied activities
(4) all of the above
(5) none of the above
9. The Kisan Credit Card Scheme is being implemented by all
(1) Public Sector Commercial Banks
(2) Regional Rural Banks
(3) State Cooperative Banks /DCCBs/PACS nad Scheduled Primary Cooperative Banks
(4) All of the above
(5) None of the above
10. Which of the following Statements about Kisan Credit Cards are correct?
(1) Banks may provide Kisan Credit Cards to farmers who are eligible for sanction of production credit without any floor limit
(2) Credit would be available to the farmers under the scheme in the form of revolving cash credit normally valid for three
years, subject to an annual review
(3) The Scheme covers term credit as also working capital for agriculture and allied activities, in addition to short term credit
limit for crop/s
(4) all of the above
(5)
none
11.
The
term
Moral
suasion
refers
to
(a)
The
bankers
duty
of
secrecy
as
regards
the
affairs
and
accounts
of
his
customers
(b)
Moral
duty
of
a
borrower
to
deal
with
only
one
bank
(c) The advice given by Reserve bank to banks/financial institutions in the matter of their lending and other operations with
the
objective
that
they
might
implement
or
follow
(d)
all
(e)
none
12.
Export-Import
bank
of
India
has
been
set
up
for
the
purposes
of
(a) functioning as a specialized institution for providing credits to foreign trade on international competitive terms
(b)
offering
advisory
services
to
exporters
(c) providing refinance facilities in regard to export finance extended by commercial banks and other financial institutions
(d)
(a),
(b)
and
(c)
(e)none
13.EXIM
(a)
(b)
(c)
(d)
(e)
14.
(a)
(b)
(c)
(d)
(e)

bank

National
Housing
Housing

meets

housing

the

needs
Indian
Overseas
commercial

banks

development
development

of

is

various

wholly

finance
boards

of

groups

owned
corporation
various

viz:
exporters
entities
banks
all
none
by:
RBI
LTD.
states
all
none

15.
The
main
objectives
of
national
housing
bank
are
(a) To promote and develop specialized housing finance institutions for mobilization of resources and extending finance for
housing
activities
(b)
To
extend
refinance
facilities
to
housing
finance
institutions
and
to
scheduled
banks
(c)
To
provide
guarantee
and
underwriting
facilities
to
housing
finance
institutions
(d)
all
(e)
none

Answers:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15. d

C
D
A
A
C
A
A
4
4
4
c
d
d
a

1.
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IBPS PO Mains: Banking Awareness Quiz

1. A Pledge means
(a) advanced against goods
(b) hypothecation of goods
(c) bailment of goods as security for payment of a debt or performance of a promise
(d) Open limits
(e) none
2. A cheque crossed as Payees a/c only is direction to
(a) the payee not to negotiate the cheque
(b) the paying banker to ensure that the proceeds of the cheque are credited to the payees a/c only
(c) the collecting banker to ensure that the proceeds of the cheques are collected for the account of the payee only
(d) none of the above
(e) all of the above
3. Truncation of cheques means
A. scanning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle
B. debiting of drawers account through internet
(a) Only A
(b) Only B
(c) Both A and B
(d) none of the above
(e) Either A or B
4. Cheques are truncated for the purpose of
(a) ensuring faster clearing of the instruments
(b) avoiding the physical movement of the paper instruments and instead transmitting their electronic image
(c) reduction in processing cost
(d) all of the above
(e) none

5. Home loans are granted


(a) for construction of residential houses
(b) for repairing of existing residential houses
(c) for renovation of residential houses
(d) for purchase of constructed houses
(e) all of the above
6. Which of the following does not come in the purview of Retail banking?
(a) Advances to traders
(b) Advances to small scale units
(c) Financing of weaker sections of the society
(d) Loan syndicate
(e) none
7. Whole sale Banking refers to the borrowing and lending funds of
(a) Government department or agencies
(b) Other banks
(c) Big industrial houses
(d) Large domestic and international companies
(e) All of the above
8. In house loans. The prime security for the loan is generally
(a) house property for which loan is granted
(b) Personal guarantee of the borrower
(c) other property of the borrower
(d) Personal guarantee of third party
(e) None
9. The quantum of the loan under home loan is decided on the basis of
(a) Income to the borrower
(b) Cost of the property/cost of construction
(c) Repaying capacity of the person
(d) All
(e) None
10. The banks are required to constitute high power liability management committees comprising top executives to
determine suitable policies for
(a) each liability product such as demand deposits, savings, term deposits and CODs
(b) liabilities denominated in foreign exchange
(c) monitoring ratio yield elastic and inelastic liabilities in the total liabilities as also supply statement of use of call money
borrowings
(d) All
(e) None
Answers will be provided soon:
1.c
2.c
3.a
4.d
5.c
6.d
7.e
8.a
9.d
10.d

1.

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BPS PO Mains: Banking Awareness Quiz (Miscellaneous)

1. The regulator of Micro Finance in India is:


(1) Finance Ministry
(2) Reserve Bank of India
(3) State Bank of India
(4) SEBI
(5) None of the above
2. Which of the following rates decided by the RBI is called Policy Rate?
(1) Lending Rate
(2) Cash Reserve Ratio
(3) Bank Rate
(4) Deposit Rate
(5) None of the above
3. Loan given by the banks to farmers/small shop owners etc. is known as
(1) Corporate loan
(2) Business loan
(3) Priority Loan
(4) Commercial Loan
(5) None of the above
4. The Head Office of which of the following banks is in Mumbai?
(1) Punjab National Bank
(2) Bank of Maharashtra
(3) UCO Bank
(4) Union Bank of India
(5) None of the above
5. As per known commercial banks accept deposits from the public. What do banks do with this
money?
(1) This a type of credit creation. Bank gives this on loan.
(2) This is an income for the bank.
(3) Banks give this money directly to the Govt. for developmental projects.
(4) This money is deposited with the RBI who in turn gives some interest on it to banks.
(5) None of the above
6. Which of the following is NOT a type of cheque issued by an individual?
(1) Bearer cheque
(2) Order cheque
(3) Crossed cheque
(4) Savings cheque
(5) None of the above
7. Sensitive Index of Bombay Stock Exchange is called ______
(1) Forex
(2) MAX
(3) LIBOR
(4) Sensex
(5) None of the above
8. What is financial inclusion?
(1) To provide a permanent employment to the unemployed

(2)
(3)
(4)
(5)

To provide a 100 days job at all those who are in need of a job
To provide banking services to all those living in remote areas
To ensure that all financial transactions amounting Rs. 5,000/- and above are done through banks.
None of the above

9. Exporters in India get insurance cover and risk cover form which of the following
organizations?
(1) SIDBI
(2) NABARD
(3) ECGC
(4) RBI
(5) None of the above
10. Banks do not provide which of the following services?
(1) Issuing Bank Draft
(2) Depositing Money
(3) Sale of post .cards and postal stamps
(4) Lockers for valueable items/documents
(5) None of the above
Answers
1.
2.
3.
4.
5.
6.
7.
8.
9.

2
3
3
4
1
4
4
3
3

10. 3

1.
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IBPS PO Mains: Banking Awareness Quiz (Currency)

Dear

BA'ians,

Lets check out our knowledge on most important part and value of our Country. Here is a Banking Awareness Quiz based on
"Currency".
1. In India, which among the following is/are a part of Legal Tender Money?
a) Both coins and currency notes
b) Both coins and bank drafts
c) Both currency notes and SDRs
d) Only currency notes issued by RBI

e)

None

of

these

2. Any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable
is a/an
a) mutilated note,
b) imperfect note,
c) soiled note,
d) mismatched note,
e) none of these
3. Currency notes issued by RBI are fully covered by:
a) Approved assets,
b) Gold
c) Foreign exchange
d) All of these
e) None of the above
4. When a currency is converted into any other currency without any limit and for any purpose,
it is called as
a) Fully convertible;
b) partially convertible;
c) controlled convertible;
d) not at all convertible;
e) none of the above
5. What do you mean by money laundering?
a) Washing the currency notes in a good laundery;
b) converting money obtained through illegal sources in to legal money;
c) keeping the money in currency chests;
d) sending excess cash to the other branch;
e) none of the above
6. Deficit financing impliesa) Printing new currency notes
b) Replacing new currency with worn out currency
c) Public revenue in excess of public expenditure
d) Public expenditure in excess of public revenue
e) None of these
7. Devaluation of a currency means
a) reduction in the value of a currency vis-a-vis major internationally traded currencies
b) permitting the currency to seek its worth in the international market
c) fixing the value of the currency in conjunction with the movement in the value of a basket of predetermined currencies
d) fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading
partners
e) None of these
8. The one-rupee note bears the signature of____________.
a) RBI Governor
b) Deputy Governor
c) Finance Secretary
d) Finance Minister
e) None of these
9. Which one of the following methods is currently used in India to issue note?
a) Fixed fiduciary System,
b) Maximum fiduciary system
c) proportional reserve system,
d) percentage Reserve system
e) Minimum Reserve system
10.Who is authorized to issue coins in India.
a) RBI,

b) Ministry of Finance,
c) SBI,
d) none of these
e) all of these
11.What is understood by Fiduciary Issue of currency?
a) The issue of currency notes without keeping gold or silver as deposit
b) The issue of currency notes keeping gold or silver as deposit
c) The issue of currency notes with partial gold or silver deposits
d) The issue of currency notes with comparative gold or silver deposits
e) None of these
12.If RBI wants to limit the capital outflows and control currency depreciation, which of the
following would be the most viable action?
a) Increase interest rates
b) Decrease interest rates
c) Purchase government bonds
d) Decrease statutory liquidity ratio
e) None of these
13.Which of the following is the sale authority for issue of currency in India?
a) Government of India
b) Reserve Bank of India
c) Controller of Currency
d) All of the above
e) None of the above
14.When was the rupee first minted in India?
a) During the reign of Sher Shah
b) During the Governorship of Lord Bentick
c) After Independence
d) During the reign of Ashoka
e) None of these
15.Who had created the new Rupee symbol in the year 2010?
a) Udaya Kumar Dharmalingam
b) Raj Kumar Barot
c) S Raju
d) Subhash Bhushan
e) None of these
Answers Answer 1.Both coins and currency notes
Answer 2.imperfect note
Answer 3.Gold
Answer 4.Fully convertible
Answer 5.converting money obtained through illegal sources in to legal money
Answer 6.Public expenditure in excess of public revenue
Answer 7.reduction in the value of a currency vis-a-vis major internationally traded currencies
Answer 8.Finance Secretary
Answer 9.Minimum Reserve system
Answer 10.Ministry of Finance
Answer 11.The issue of currency notes without keeping gold or silver as deposit
Answer 12.Increase interest rates
Answer 13.Reserve Bank of India
Answer 14.During the reign of Sher Shah
Answer 15.Udaya Kumar Dharmalingam

1.

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