www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 1 Important Banking Awareness Questions for Upcoming Bank PO and Clerk Exams Part-VI 1). Which among the following is launched to avoid frauds in multiple mortgage cases, under SARFAESI Act,2002 one special thing has been created and made operative from 01.04.2011? a)Special Register Officer at Lucknow b)Special Central Arbitration Bureau at Lucknow c)Central Electronic Registry d)Central SARFAESI Tribunals at 6 Centres e)State Electronic Registries 2). SBI has merged which of the following two associate banks with itself? a)State Bank of Hyderabad and State Bank of Patiala b)State Bank of Hyderabad and State Bank of Travancore c)State Bank of Mysore and State Bank of Travancore d)State Bank of Indore and State Bank of Hyderabad e)State Bank of Indore and State Bank of Saurashtra 3).Which among the following statement is true? a)Banks cannot accept demand and time deposits from public b)Banks can accept only demand deposits from public c)Banks can accept only time deposits from public d)Banks can accept both demand and time deposits from public e)Banks can accept demand and time deposits only from government. 4).Internet payable on saving bank account is______________ a)Not regulated by RBI b)Regulated by State Government c)Regulated by Central Government. d)Regulated by RBI www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 2 e)Regulated by Finance minister 5).Which of the following is the correct statement? a)State bank of India is the sole authority to issue and manage currency in India. b)A Nationalized bank is the sole authority to issue and manage currency in India. c)A cooperative bank is the sole authority to issue and manage currency in India d)RBI is the sole authority to issue and manage currency in India e)None of these 6). Account are allowed to be operated by cheque in respect of________. a)Both Saving bank accounts and fixed deposits account b)Savings bank accounts and currents accounts c)Both savings bank accounts and loan accountsd)Both savings bank accounts and cash accounts only e)Both current accounts and fixed deposit accounts 7).Many times we read a term CBS used in banking operations. What is the full form of the letter C in the term CBS? a)Complete b)Credit c)Continuous d)Core e)None of these 8).GNP stands for_______ a)Gross National Product b)Grop Net Product c)Grand Nuclear Process d)Group Networking Process e)None of these www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 3 9).Which among the following schemes is launched specifically for helping senior Citizens to avail loan by mortgage of their residential property? a)English mortgage schemes b)Senior Capital loan scheme c)Reverse Mortgage loan scheme d)Senior Citizen Personal loan scheme e)None of these 10).SEBI is a ___________________ a)Advisory body b)Statutory body c)Constitutional body d)Non-statutory body e)Registered as a Society Answers: 1). e)2). e)3). d)4). d)5). d)6). b)7). d)8). a)9). c)10). b) 11.) Mixed Economy means _________ a)Co-existence of small and large industries b)Promoting both Agriculture and industries in the economy c)Co-existence of public and private sectors d)Co-existence of rich and poor e)Existence of wholesale and Retail Markets 12.) The expansion for BIFR, in the context of the Indian Industry is _______ a)Board for Investment and Financial Redevelopment b)Bureau for Industrial for Financial Revolution c)Board for investment and Formal Reconstruction d)Board for Industrial & Financial Reconstruction www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 4 e)Bureau for Investment and Financial Reconstruction 13.) A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as______ a)CHAPS b)SWIFT c)NEFT d)SFMS e)CHIPS 14.) The most active segment of the Money Market in India is which one of the following? a)Call Money / Notice Money Market b)Repo / Reverse Repo c)Commercial Paper (CP) d)Certificate of Deposit (CD) e)None of these 15.) Which among the following schemes is related exclusively to Financial Inclusion? a)Swawlamban b)Swadeshi c)Swabhiman d)SGSY e)None of these 16.) Which one of the following decisions has been taken by Government in respect of MGNREGA? a)The wages should be revised by the state Government b)The wages are to be revised by Planning Commission c)The District Authorities who allot work can give differential wages d)The wages shall be linked to inflation e)None of these www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 5 17.) For which one of following reasons Basel II norms are to be followed by Commercial Banks? a)Risk management b)Adoption of international accounting standards c)Restriction on bonus payments to bank executives d)Transparency in disclosures e)None of these 18.) What is the full form of the term LIBOR as used in financial / banking sectors? a)Local Indian Bank Offered Rate b)London-Indian Bureau of Regulations c)Liberal International Bank Official Ratio d)London Inter Bank Offered Rate e)None of these 19.) Technological Advancement in the recent times has given a new dimension to banks, mainly to which one of the following aspects? a)New Age Financial Derivatives b)Service Delivery Mechanism c)Any Banking d)Any type Banking e)Multilevel Marketing 20.) 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 Financial d)RBI e)Interest Rate Commission of India www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 6 Answers: 11). c)12). d) 13). b) 14). c) 15). c) 16). a) 17). a) 18). d) 19). d) 20). d) 21).KYC Stands for________. a)Know Your Company b)Know Your Customer c)Know Your Currency d)Know your Credits e)None of these 22).The Maximum amount of the total Revenue Earned by the government of India Comes from_______. a)Income Tax b)Customs Duty c)Excise Duty d)Value Added Tax e)Corporate Tax 23).Financial Inclusion is the latest powerful total adopted by Reserve Bank of India, to fulfill the basic objective of________. a)Uplifting of Population lying below poverty line b)Connecting every Indian to the Countrys Banking System c)Ensuring bank finance to all the landless agriculturists d)Overall financial growth backed by inflation control e)Inclusion of Latest Technology in Financial Sector of the Country 24).Which bank is the Banker to the Central Government? a)Central Bank of India b)Reserve Bank of India www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 7 c)Punjab National Bank d)State Bank of India e)All of these 25).The higher growth of economy certainly reduces the _______. a)Gender inequalities b)Poverty c)Population of a country d)Flow of foreign direct investment e)None of these 26).RBIs Policy stance to manage interest and liquidity are used for__________. a)Moderate inflation and maintain economic growth b)Moderating competition among private and public sector banks c)Eradicate un-employment in Public Sectord)Moderate Currency Supply in Public Sector e)Moderate deposits in Public sector banks27).In India the interest rate on savings bank accounts in all nationalized commercial banks in fixed by__________. a)Union Ministry of Finance b)Union Finance Commission c)Indian Banks Association d)Reserve Bank of India e)All the banks decide together 28).What is Repo Rate? a)It is a rate at which RBI sells government securities to banks b)It is a rate at which RBI allows small loans in the market c)It is a rate at which banks borrow rupees from Reserve Bank of India www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 8 d)It is rate which is offered by Banks to their most valued customers or Prime Customers e)None of these 29).NPA in banking terminology denotes_________. a)New Para-banking Assets b)Net Profitable Assets c)Net Performing Assets d)Non Performing Assets e)New Pension Act 30).When a customer draws a cheque on a bank_______. a)It is a mandate on that bank to pay b)It is a mandate on the Government of India to pay c)It is a mandate on the State Government to pay d)It is a mandate on the RBI to pay e)It is a mandate on the Finance Ministry to pay Answers: 21). b)22). e) 23). b) 24). b) 25). b) 26). a) 27). e) 28). c) 29). d) 30). a) 31).Nationalized Bank is also known as________. a)Private Sector Banks b)Self help Groups c)Cooperative Banks d)Grameena Banks e)Public Sector Banks 32).In which of the following accounts, operation by cheques is permitted? a)Savings bank accounts and fixed deposit accounts www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 9 b)Current accounts and fixed deposit accounts c)Savings bank accounts and floating loan accounts d)Savings bank accounts and cash accounts e)Savings banks accounts and current accounts 33).Which of the following is NOT comes under the functions of Banks? a)Accept demand and time deposits from the public b)Accept items for keeping in safe custody c)Sell gold coins d)Buy commodities for trading e)Accept foreign currency for selling to money changers 34).RTGS enables___________. a)Immediate transfer of money from customer of one bank to customer of another bank b)Immediate transfer of money from customer of one bank to customer of another branch within the same bank c)Immediate transfer of money from customer of another country d)Immediate transfer of money from customer of one bank to customer of RBI e)None of these 35).Which among the following is the private sector banks? a)Union Bank of India b)Syndicate Bank c)IDBI Bank d)UCO Bank e)HDFC Bank36).Travellers Cheque is__________. a)A supplementary credit card b)A cheque issued by a bank or finance institution which functions as capital www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 10 c)A certificate issued by a bank or finance institution in lieu of cashd)A cheque issued by a bank or finance institution which functions as a bond e)A prepaid instrument issued by a bank or financial institutions which can be substitute of cash 37).Mortgage is a security created on___________. a)Movable property for a loan given by a bank b)Immovable property for a deposit received by a bank c)A confirmation of immovable property given by a bank d)Movable property for a deposit given by a bank e)Immovable property for a loan given by a bank 38).Which of the following is an international Credit Rating Agency and was recently in NEWS? a)UNDP b)Standard & Poors c)UNCTAD d)BNP Parbas e)Abbey National 39).What is the full form of the name ILO an agency of the United Nations? a)International Labour Organization b)International Legal Organization c)Indian Labour Organization d)Information & Legal Organization e)Indian Lawyers Organization 40).For using the safe deposit locker facilities, bank customers pay__________. a)Commission of locker b)Interest on locker c)Rent on locker d)Exchange on locker www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 11 e)Safe custody charges Answers: 31). e)32). e) 33). d) 34). a) 35). e) 36). e) 37). e) 38). b) 39). a) 40). c) 41).If a crossed cheque is presented for payment _______. a)Cash can be paid across the counter to the presenter b)Cash can be paid across the counter to the account holder only. c)It can be paid only through a banker. d)It cannot be paid at all e)It can be paid across the counter in another bank. 42).Bank branches which can undertake foreign exchange business directly are known as _______ in foreign exchange. a)Authorized dealers b)Foreign dealers c)Overseas branches d)Approved dealer e)Exchange branches 43).Insurance cover for bank deposits in our country is provided by____ a)SBI b)Government of India c)GIC d)LIC e)DICGC 44).The financial Literacy does not include which of the following? a)How to invest the funds b)How to use the limited funds carefully c)How to minimize the risks www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 12 d)How to reinvest the money earned e)None of these 45).Loans of very small amounts given to low income groups is called_____ a)Cash credit b)Micro credit c)Simple overdrafe d)No frills loans e)Rural credit 46).When a banker talks about CDR, what is he talking about? a)Corporate Debt Restructuring b)Corporate Debt Rollover c)Company Deposit Rollover d)Corporate Deposit Restructuring e)Company Deposit Restructuring 47).Expand the term ALM as used in Banking/Finance sector. a)Asset Liability Management b)Asset Liability Maturity c)Asset Liability Mismatch d)Asset Liability Manpower e)Asset Liability Maintenance 48).Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related to which of the following industries / markets? a)Capital Market b)Banking industry c)Commodities market d)Money Market e)Mutual fund industry www.ibpsguide.com For More Banking Awareness Materials Visit: www.ibpsguide.comPage 13 49).What does the letter L stands for in the term LAF commonly used in financial / economic news? a)Liquidity b)Least c)Liabilities d)Long e)Liquid 50).The Banking Ombudsman______ a)Is in charge of bank loans for buses b)Fixes the rates of interest for loans c)Resolves complaints of customers d)Issues licences for new bank branches e)Is the head of all nationalized banks Answers: 41). c) 42). a) 43). e) 44). e) 45). b) 46). a) 47). a) 48). b) 49). a) 50). c)