January 2017 banking awareness-5

Q1. What does FSDC stand for?

(a) Financial Security and Development Council 

(b) Financial Stability and Development Council 

(c) Fiscal Security and Development Council 

(d) Fiscal Stability and Development Council

(e) None of the above

Q2. ___________ has been declared the first ‘total banking state’ in India, successfully implementing the total financial inclusion thereby ensuring banking facility to all households. 

(a) Maharashtra            

(b) Kerala     

(c) Himachal Pradesh     

(d) Uttarakhand

(e) Gujarat

Q3. 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 the above

Q4. _____________ are the beneficiaries of the “Reverse Mortgage Scheme”.

(a) Government employees     

(b) Senior citizens

(c) Unemployed persons      

(d) Persons of BPL category

(e) None of the above

Q5. RBI was nationalized in the year-

(a) 1949

(b) 1952    

(c) 1955    

(d) 1964

(e) 1935

Q6. Which of the following is not a measure to control inflation as adopted by Govt. of India and/or RBI?

(a) Monetary Policy   

(b) Fiscal Policy   

(c) Financial Inclusion 

(d) Price control   

(e) Bank Rate Policy 

Q7. Current accounts are meant and useful for _____?

(a) Investment purposes    

(b) Identity purposes  

(c) Savings purposes 

(d) Day-to-day business needs

(e) Operational convenience  

Q8. A _____ card is basically a payment mechanism which allows the holder to make purchase without any immediate cash outflows either physically or through his accounts?

(a) Debit 

(b) Smart 

(c) Credit

(d) ATM

(e) Kisan Credit 

Q9. What do we mean by “Demat Accounts” in the financial markets in India?

(a) an account which is opened by the people of the lower income group of society   

(b) an account in which trading of shares is done

(c) an account, which can be opened only by the Minors 

(d) an account, of the nature of current account, which can be opened only by the Corporate Houses 

(e) None of the above

Q10. 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 government’s budget 

(d) All of the above 

(e) None of the above

Q11. The Negotiable Instruments Act deals with ____?

(a) Cheques, demand drafts, banker’s cheques

(b) Promissory notes, bills of exchange and cheques

(c) Bills of exchange, Cheques and demand drafts 

(d) Cheques, demand drafts and saving bank withdrawal forms  

(e) None of the above

Q12. “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  

Q13. A NBFC is prohibited to offer or undertake _____?

(a) accept demand deposits 

(b) accept time deposits   

(c) Lend long term loans  

(d) Pay a higher rate of interest on deposits as compared to Banks

(e) None of the Above 

Q14. CBS stand for?

(a) Centralised banking system 

(b) Computer based Solution 

(c) Core banking Solution

(d) Customised banking Solution 

(e) None of the Above 

Q15. Small Industries Development Bank of India’s Single Window scheme means that a borrower is granted _____?

(a) Both term loan for fixed assets and loan for working capital through the same agency, namely, SFCs or Commercial Banks

(b) Both term and working capital through SIDBI itself     

(c) Both term loan and working capital through IDBI     

(d) All of the above 

(e) None of the above

January 2017 banking awareness-4

Q1. Refinance facility is provided by NABARD. Which institutions can avail this facility?

(a) State cooperative banks

(b) Regional rural banks

(c) Commercial bank

(d) All of the above

(e) Other than the given options

Q2. Kisan Credit Cards are an effective way of reaching out to the farmers by the banks. What assistance does the farmer receive in this way?

(a) Credit facility for crops etc against an approved limit

(b) Short-term credit facility against value of his crops

(c) Long-term credit is provided against his land holdings

(d) Loan is permissible against crops sold, but payment yet to be received by the farmer

(e) Other than the given options

Q3. Which of the following is true?

(a) NBFCs can accept deposits from the public

(b) NBFCs cannot offer deposit schemes to the public

(c) Deposits of NBFCs are insured with DICGC

(d) NBFCs can accept deposits from public if they are registered and permitted by RBI

(e) Other than the given options

Q4. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?

(a) Individual Banks’ Board

(b) Ministry of Commerce

(c) Ministry of Finance

(d) RBI

(e) Interest Rate Commission of India

Q5. The financial assistance of loans of Rs.10000 by bank to a small borrower will be called..........?

(a) Business finance

(b) Government finance

(c) Micro finance

(d) Small finance

(e) KYC finance

Q6. (The figures in these questions are imaginary). We suppose that Cash Reserve Ratio (CRR) in country’s economy is 10%. The banking system wish a cash deposits of Rs. 1000 Crore, creates total deposits of Rs. 10,000 Crores. The Reserve Bank wishes that bank should create more deposits. Which among the following step will be taken by the Reserve Bank?

(a) It will lower the Cash Reserve Ratio

(b) It will raise the Cash Reserve Ratio 

(c) It will increase the Margin Requirements  

(d) It will start selling Government Securities

(e) Other than the given options

Q7. Many a times we read in the newspapers that RBI takes certain steps to curb the menace of Inflation. In this context, which among the following will not help RBI in controlling the inflation in the country?

(a) An increase in the Bank Rate 

(b) An increase in the Reserve Ratio Requirements 

(c) A purchase of securities in the open market 

(d) Rationing of the credit 

(e) Other than the given options

Q8. We suppose that Reserve Bank of India would like to increase the cash Reserves of the commercial banks. Which among the following would be most appropriate action of the RBI to achieve this aim?

(a) RBI would release gold form its reserves 

(b) RBI would raise the reserve ratio 

(c) RBI would buy the bonds in the open market

(d) RBI will stop the transactions which involve the bills of exchange

(e) Other than the given options

Q9. Commercial banks are the largest category of financial intermediaries; others include?

(a) Life-insurance companies 

(b) Pension funds 

(c) Savings and loan institutions 

(d) All of the above

(e) Other than the given options

Q10. An average citizen cannot open a Savings account in which of the following?

(a) Commercial bank

(b) Post office

(c) Co-operative bank

(d) RBI

(e) Other than the given options

Q11. Educational for All Development Index is released by - 

(a) IMF

(b) World Bank

(c) UNO

(d) WTO

(e) Other than the given options

Q12. Which of the following is/are TRUE about the “Village Gram Bank Scheme”?

(a) The scheme is launched to provide safeguards against Starvation during the period of natural calamities or lean season

(b) The gram banks are set up in food scare areas like drought prone areas

(c) Village Panchayats who were running Village Grain Banks earlier are now not authorized to run

(d) Both (a) and (b)

(e) Other than the given options

Q13. Non-Agricultural Market Access (NAMA) word is related to which organization?

(a) WTO

(b) UNCTAD

(c) IMF

(d) World Bank

(e) NDB

Q14. SEBI is related to _________.

(a) Bank 

(b) Government of India

(c) Share Market

(d) State Government

(e) Other than the given options

Q15. The National Planning Council (NPC) was formed on 3rd February ______ to ensure coordination of planning functions of different sectors, to determine national priorities, to provide advice on long term development policies and strategies, to ensure sustainable development of the nation and to ensure balanced and equitable development at provincial level.

(a) 1996

(b) 2992

(c) 2012

(d) 2009

(e) 2002

January 2017 banking awareness-3

Q1. Who is the first Governor of RBI? 

(a) C.D.Deshmukh

(b) James Braid Taylor 

(c) Osborne Smith 

(d) Raghuram Rajan

(e) Other than the given options

Q2. Scheduled Banks of India are those banks, which are? 

(a) Included in First Schedule of RBI Act, 1934 

(b) Not included in First Schedule of RBI Act, 1934 

(c) Included in Second Schedule of RBI Act, 1934

(d) Not included in Second Schedule of RBI Act, 1934

(e) Other than the given options 

Q3. Which is not an Associate Bank of SBI? 

(a) State Bank of Bikaner & Jaipur 

(b) State Bank of Travancore 

(c) State Bank of Mysore 

(d) State Bank of Rajasthan

(e) Other than the given options

Q4. Which of the following bank is not a private sector bank in India? 

(a) Federal Bank 

(b) Yes Bank 

(c) IndusInd Bank 

(d) UCO Bank

(e) Other than the given options

Q5. Which private sector bank is recently merged with Kotak Mahindra Bank (KMB)? 

(a) ING Vysya Bank 

(b) Karur Vysya Bank 

(c) Lakshmi Vilas Bank 

(d) Jammu and Kashmir Bank 

(e) Other than the given options

Q6. Currently, Which of the following combination has female CMDs or heads? 

(a) HDFC, ICICI, Axis Bank 

(b) ICICI, Axis Bank, Kotak Mahindra Bank 

(c) Yes Bank, Kotak Mahindra Bank, SBI 

(d) SBI, ICICI, Axis Bank 

(e) Other than the given options

Q7. Which one of the following rates is not decided by RBI? 

(a) Repo rate 

(b) Base rate

(c) Bank rate 

(d) Marginal Standing Facility (MSF) rate 

(e) Other than the given options

Q8. Which of the following bank is generally not considered as Commercial bank? 

(a) Public Sector Bank 

(b) Private Sector Bank 

(c) Development Bank

(d) Foreign Bank 

(e) Other than the given options

Q9. Which of the followings are Development Banks of India? 

(a) Industrial Finance Corporation of India (IFCI) 

(b) State Finance Corporations (SFCs) 

(c) Small Industries Development Bank of India (SIDBI)

(d) All of the above

(e) Other than the given options

Q10. Which bank are Public Sector Banks of India? 

(a) More than 50 % stake held by government 

(b) 50 % stake held by government 

(c) Less than 50 % stake held by government 

(d) Less than 25 % stake held by government 

(e) Other than the given options

Q11. Which two private sector banks have got license from RBI in 2014? 

(a) Bandhan and Yes Bank 

(b) Yes Bank and IDFC 

(c) IDFC Bank and Bandhan Bank

(d) Axis Bank and ICICI 

(e) Other than the given options

Q12. Who is conferred with the Central Banker of the Year Award (Global and Asia Pacific) for 2016 by The Banker, the Financial Times Group's monthly publication?

(a) Janet Yellen

(b) Raghuram Rajan 

(c) Graeme Wheeler 

(d) Mario Draghi

(e) Other than the given options

Q13. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy means?

(a) Sale or purchase of Govt. securities

(b) Issuance of different types of bonds 

(c) Auction of gold 

(d) All of the above

(e) Other than the given options 

Q14. Which bank first introduced Automated Teller Machine (ATM) in India (1987)? 

(a) SBI 

(b) Punjab National Bank 

(c) Federal Bank 

(d) HSBC

(e) Other than the given options 

Q15. Bank of Rajasthan was merged with which private sector bank? 

(a) ICICI Bank 

(b) Axis Bank 

(c) HDFC Bank 

(d) Kotak Mahindra Bank

(e) Other than the given options 

January 2017 banking awareness-2

Q1. National Income of India is estimated by?

(a) Central Estimates Survey Committee

(b) National Sample Survey Committee

(c) Central Statistical Organization

(d) Finance Ministry

(e) Other than the given options

Q2. Net National Product is equivalent to-

(a) Gross Domestic Product minus Depreciation

(b) Gross National Product minus Indirect Taxes

(c) Net National Income minus Depreciation

(d) Gross National Product minus Depreciation

(e) Other than the given options

Q3. Nomination facility is available to-

(a) Individuals/Sole Proprietorship accounts/Private Limited Companies

(b) Individuals/Sole Proprietorship Accounts/Partnership Accounts

(c) Individuals/Sole Proprietorship Accounts

(d) All of the above

(e) Other than the given options

Q4. Off Shore Banking Unit is?

(a) a unit which is situated in Foreign country

(b) a unit which is situated in Special Economic Zones and deals in foreign currency only

(c) a unit which is actively participating in lending foreign currency loans and in joint ventures

(d) All of the above

(e) Other than the given options

Q5. Which of the following is the apex authority for Direct Taxes? 

(a) CBDT

(b) CBEC 

(c) RBI 

(d) SEBI 

(e) Other than the given options

Q6. If a bank is unable to refund the short term deposits as funds are locked in long term loans, it involves?

(a) Interest Rate Risk

(b) Operational Risk

(c) Liquidity Risk

(d) Market Risk

(e) Other than the given options

Q7. If a cheque presented through the Clearing House is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo while returning the instrument to the customer. This provision has been prescribed under...?

(a) Negotiable Instruments Act, 1881

(b) Reserve Bank of India Act, 1934

(c) Banking Regulation Act, 1949

(d) RBI Clearing House Rules

(e) Other than the given options

Q8. If a currency note is demonetized, it takes away the ________ of that currency.

(a) legal tender character

(b) exchange rate

(c) value

(d) All of the above

(e) Other than the given options

Q9. If credit facility applied for is rejected, the reasons therefore should be briefly mentioned in the-

(a) Loan Applications Received and Disposal Register

(b) Opinion Reports

(c) Loan Rejection Register

(d) All of the above

(e) Other than the given options

Q10. In case of Term Loans, the period of limitation is calculated as three years from?

(a) Date of documents

(b) Date of sanction

(c) Date of default

(d) Due date of each installment

(e) Other than the given options

Q11. Currency Note containing political slogan is not a legal tender as per:

(a) Legal Tender (Inscribed Notes) Act, 1964

(b) Negotiable Instruments Act, 1881

(c) Reserve Bank of India Act

(d) All of the above

(e) Other than the given options

Q12. Demand draft for Rs. 20,000 and above:

(a) can be paid in cash

(b) should not be paid in cash

(c) mode of payment will depend on the status of the customer 

(d) All of the above

(e) Other than the given options

Q13. Deposits under NRE/FCNB accounts are linked to-

(a) Base Rate

(b) SIBOR

(c) LIBOR

(d) All of the above

(e) Other than the given options

Q14. Electronic Fund Transfer scheme of RBI has been renamed as:

(a) Clearing

(b) Core Banking Solutions

(c) Real Time Gross Settlement

(d) National Electronic Fund Transfer

(e) All of the above

Q15. Escrow account is useful/helpful to-

(a) importers

(b) exporters

(c) people

(d) Assets

(e) Other than the given options