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Banking Awareness Quiz 1 – Practi...

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Banking Awareness Quiz 1 – Practice Sets

shape Introduction

Banking Awareness is an important section in the employment related competitive exams in India. In particular, exams like IBPS, SBI and other bank related employment exams have banking awareness questions along with general awareness section. The Banking Awareness section primarily has questions related to the History of Banking, Banking Terms, Banking Products, Functions of Banks, Banks and their Taglines, Schemes, Committees related to Banking, Headquarters of Banks, most recent Banking News, Apps launched by Banks, New Schemes, Monetary Policies etc.


Banking Awareness Quiz 1 – Practice Sets article provides the list of several bank related questions to prepare aspirants of different competitive exams in India, primarily for banking related employment. The article Banking Awareness Quiz 1 – Practice Sets is very useful for different exams such as IBPS PO, Clerk, SSC CGL, SBI PO, NIACL Assistant, NICL AO, IBPS RRB, Railways, Civil Services etc.


shape Quiz

Q1. Which is the first Indian Commercial Bank that was fully owned and managed by Indians?

    A. State Bank of India
    B. Allahabad Bank
    C. Central Bank of India
    D. Canara Bank
    E. None of these


Answer: Option C

Q2. Which bank has started as a private shareholders bank, mostly by European shareholders?

    A. Bank of India
    B. Bank of Baroda
    C. Dena Bank
    D. Imperial Bank of India
    E. South Indian Bank


Answer: Option D

Q3. Which was the first indian bank started solely with Indian Capital?

    A. Punjab National Bank
    B. Andhra Bank
    C. Indian Overseas Bank
    D. Syndicate Bank
    E. None of these


Answer: Option A

Q4. In which city the head office of Corporation Bank is situated ?

    A. Bengaluru
    B. Mumbai
    C. Mangalore
    D. Kolkata
    E. Manipal


Answer: Option C

Q5. Which of the following statements is/are true about NABARD?

    A. It is a development bank in the sector of Regional Rural Banks in India.
    B. It provides and regulates credits in the rural area.
    C. It gives assistance for the promotion and development of rural sectors, mainly agriculture.
    D. It finances rural crafts.
    E. All of these.


Answer: Option E

Q6. Which of the following statements is/are true about Co-operative Banks in India?

    A. It has a three-tire set-up.
    B. State Co-operative Banks does not have access
    to RBI
    C. It is an urban-oriented Bank
    D. It functions on sound business principles.
    E. None of these.


Answer: Option A

Q7. Fiscal policy is related with which of the following?

    A. Public Revenue and Expenditure
    B. Education for All
    C. Import and Export
    D. Issue of Currency
    E. None of these


Answer: Option A

Q8. What is the function of IRDA?

    A. Plan for Financial Inclusion
    B. Provide relief packages to the Farmers
    C. Regulate insurance business in India
    D. Hiring & Purchasing assets
    E. None of these


Answer: Option C

Q9. Which of the following organization decides Repo Rate?

    A. SEBI
    B. IMF
    C. AMFI
    D. SBI
    E. RBI


Answer: Option E

Q10. What is/are true about IMF?

    A. It’s headquarter is situated at Washington,
    B. It works to foster economic stability and global growth by providing policy, advice and financing to members
    C. It negotiates conditions on lending and loans under their policy
    D. It oversees the fixed exchange rate arrangements between countries
    E. All of these


Answer: Option E

Q1. In which year Vijaya Bank was nationalized?

    A. 1931
    B. 1950
    C. 1980
    D. 1969
    E. 1959


Answer: Option C

Q2. Who is the chief of IMF?

    A. Robert Zoelick
    B. Christine Lagarde
    C. Kristalina Georgieva
    D. Takehiko Nakao
    E. None of these


Answer: Option B

Q3. Which of the following is not a bank- related term?

    A. Writ
    B. Blue Book
    C. Blockade
    D. Liquid
    E. Real time Gross Settlement


Answer: Option E

Q4. Which of the following is not a Bank?

    A. HSBC
    B. BNP Paribas
    C. Barclays
    D. Lufthansa
    E. All are banks


Answer: Option D

Q5. Which of the following is not a Foreign bank?

    A. Citi Bank
    B. HSBC
    C. BNP Paribas
    D. Oriental bank of Commerce
    E. Taib Bank


Answer: Option D

Q6. What is /are the main aim of financial inclusion?

    A. to maintain a certain quantity of liquid assets with themselves at any point of time of their total time and demand liabilities.
    B. to control the money supply in the economy.
    C. to provide basic banking services to all section of society in urban areas or rural areas at affordable cost
    D. Only A and B
    E. None of these


Answer: Option C

Q7. What is known as the certain percentage of bank deposits which banks are required to keep with RBI in the form of reserves or balances?

    A. Statutory liquidity ratio
    B. Repo Rate
    C. Reverse Repo Rate
    D. Cash Reserve Ratio
    E. None of these


Answer: Option D

Q8. Which of the following statements is/ are true about Marginal Standing Funding ?

    A. Banks can avail funds on an overnight basis below the stipulated SLR up to two percent of their respective Net Demand
    B. Banks can avail funds from the RBI on an overnight basis against their excess SLR holdings
    C. Bank can meet the liquidity requirements of mutual funds
    D. Bank can get loans from RBI for their emergency needs
    E. All of these


Answer: Option E

Q9. The rate, at which RBI lends money to commercial banks against securities when commercial banks has fewer funds for Short-Term, is/are known as which of the following?

    A. Repo Rate
    B. Repurchase Rate
    C. Policy Rate
    D. Only A and B
    E. All of these


Answer: Option E

Q10. What is the main tool to control the money supply in the case of banking?

    A. Bank Rate
    B. Repo Rate
    C. Reverse Repo Rate
    D. LTV Ratio
    E. None of these


Answer: Option B

Q1. Which of the following is the first bank of India?

    A. Allahabad Bank
    B. State Bank of India
    C. Punjab National Bank
    D. Bank of Hindustan
    E. None of these


Answer: Option D

Q2. Which one of the following is the largest Foreign Bank in India ?

    A. HSBC
    B. Standard Chartered Bank
    C. Taib Bank
    D. Barclays Bank
    E. None of these


Answer: Option B

Q3. Which one is the First Regional Rural Bank in India?

    A. Kashi Gomti Samyut Gramin Bank
    B. Andhra Pradesh Grameen Vikas Bank
    C. Prathama Bank
    D. Bharatiya Mahila Bank
    E. None of these


Answer: Option C

Q4. Which of the following is not an initiative taken by RBI and GOI towards financial inclusion?

    A. Swabhimaan Scheme
    B. Easy KYC norms
    C. Granting new bank licenses
    D. Banking correspondent model
    E. Pradhan Mantri Mudra Yojana


Answer: Option E

Q5. Which of the following statements is/ are not true about Pradhan Mantri Jan – Dhan Yojana?

    A. Every Indian family enrolled in a bank for opening zero balance account
    B. The account can be opened by can be open by giving only one document either proof of address and proof of identity
    C. It provides various different profit to account holder like insurance cover, overdraft facility, Atm card etc.
    D. The main aim is to open one bank account for every adult person in every family
    E. All are true


Answer: Option D

Q6. Which one is the first bank to introduce robot in banking service?

    A. HSBC
    B. HDFC
    C. ICICI
    D. Axis Bank
    E. Citi Bank


Answer: Option B

Q7. Which of the following is not a Public Sector Bank?

    A. IFCI
    B. EXIM Bank
    C. SIDBI
    D. HDFC
    E. None of these


Answer: Option D

Q8. Which of the following banks first introduce voice biometric in banking system?

    A. HDFC
    B. HSBC
    C. ICICI
    D. SBI
    E. Citi Bank


Answer: Option E

Q9. What of the following statements is/are true about Green Banking ?

    A. It stresses on environmental friendly practices
    B. It aims at reducing carbon footprint from banking activities.
    C. It promotes deployment of clean energy technologies
    D. It needs private sector investments
    E. All of these


Answer: Option E

Q10. Which is the first Indian bank outside India?

    A. Bank of India
    B. State Bank of India
    C. Bank of Baroda
    D. Canara Bank
    E. Dena Bank


Answer: Option A

Q1. What is a Bad Bank?

    A. It gives loan at a very high interest rate
    B. It takes over all bad loans and help to sell the property in a private market
    C. It takes more time to sanction a loan
    D. The loan-policy of this bank is very complex
    E. None of these


Answer: Option B

Q2. NPA stands for which of the following?

    A. Non Profitable Assets
    B. New Performing Assets
    C. Non Permanent Assets
    D. Non Performing Assets
    E. None of these


Answer: Option D

Q3. PARA stands for which of the following?

    A. Private Sector Asset Rehabilitation Agency
    B. Public Associated Rehabilitation Agency
    C. Public Sector Asset Rehabilitation Agency
    D. Private Acquired Rehabilitation Agency
    E. None of these


Answer: Option C

Q4. Which of the following is/ are the function(s) of World Bank?

    A. It works for the reduction of poverty worldwide
    B. It provides loans to countries of the world for capital programs
    C. It promotes gender equality
    D. It ensures environmental sustainability
    E. All of these


Answer: Option E

Q5. Which of following banks has established an exclusive vertical for NPA recovery?

    A. United Bank of India
    B. Union Bank of India
    C. IDBI
    D. Allahabad Bank
    E. None of these


Answer: Option C

Q6. Which of the following statements is/are true about Bitcoins?

    A. It is a virtual currency
    B. It is a crypt-currency and a payment system
    C. It is a software protocol
    D. Two Types of keys are required to use Bitcoin
    E. All of these


Answer: Option E

Q7. IMPS stands for which of the following?

    A. Intermediate Payment Service
    B. Inter Metro Payment Service
    C. Inter-Market Payment Service
    D. Immediate Payment Service
    E. None of these


Answer: Option D

Q8. Which of the following is not an advantage of Bitcoins?

    A. It can not be stolen
    B. No transaction cost is required
    C. No central Bank has authorized Bitcoin
    D. It cannot be tracked
    E. All are advantages


Answer: Option C

Q9. NPCI stands for which of the following?

    A. National Payments Corporation of India
    B. Non-Payment Corporation of India
    C. National Profitable Corporation of India
    D. Non-Profitable Corporation of India
    E. None of these


Answer: Option A

Q10. Which of the following statements is/are true about PAN?

    A. It becomes mandatory for filing Income Tax Return
    B. It helps to get the Tax deduction
    C. It is the most valid financial identity
    D. It helps to get the benefit of various Govt. Schemes
    E. All of these


Answer: Option E

Q1. On which year NABARD was established?

    A. 1991
    B. 1982
    C. 1993
    D. 1988
    E. None of these


Answer: Option B

Q2. What is/are the objective(s) of IMF?

    A. To promote international monetary cooperation
    B. To ensure balanced international trade
    C. To exchange rate stability
    D. To minimize exchange restrictions by promoting multilateral payments
    E. All of these


Answer: Option E

Q3. The head office of UCO Bank is located at which city?

    A. New Delhi
    B. Mumbai
    C. Hyderabad
    D. Kolkata
    E. Pune


Answer: Option D

Q4. The economic growth of a country can be measured by which of the following?

    A. Net National Product
    B. Net Domestic Product
    C. Per Capita Real Income
    D. Gross Domestic Product
    E. None of these


Answer: Option C

Q5. Fiscal Policy is concerned about which of the following?

    A. Export and Import
    B. Issue of currency
    C. Population Control
    D. Public Revenue and Expenditure
    E. None of these


Answer: Option D

Q6. Which of the following Banks Plans to set up 100 digital villages to promote Digital Banking?

    A. Dena Bank
    B. Vijaya Bank
    C. Oriental Bank of Commerce
    D. NABARD
    E. None of these


Answer: Option B

Q7. Which of the following statements is not true about the upcoming Rs. 500 currency notes?

    A. Its design will be similar to the 2017 introduced Rs. 500 currency notes
    B. It will have the signature of Dr. Urjit K Patel C. It will bear the printing year 2017 on the reverse side
    D. It will have inset letter A in both number panels
    E. None of these


Answer: Option E

Q8. The first Paytm Payment Bank is located at which city?

    A. New Delhi
    B. Gurugram
    C. Noida
    D. Lukhnow
    E. Chandigarh


Answer: Option C

Q9. Which of the following is not a feature of upcoming Re. 1 note?

    A. It will be pink-green on the obverse and reverse in combination with other colors
    B. It will bear the rupee symbol
    C. It will be issued by the Reserve Bank of India
    D. The watermarks will include Ashoka Pillar, hidden numeral 1 and hidden word Bharat in Hindi
    E. None of these


Answer: Option C

Q10. NEFT stands for which of the following?

    A. National Electronic Fund Transfer
    B. National Equity Fund Transaction
    C. National Electronic Fund Transaction
    D. Non-Electronic Fund Transfer
    E. None of these


Answer: Option A

Q1. Which of the following is not a feature of Paytm Payment Bank?

    A. It accepts deposits up to 1 Lakh per customer in savings/current account and wallet
    B. It offers services like Debit card, online banking, and mobile banking
    C. It offers the facility of online fund transfer to its customer at free of cost
    D. It will be allowed to lend to customers
    E. None of these


Answer: Option D

Q2. Which of the following steps has taken by the RBI to tackle bad loans?

    A. It proposes to include some members to constitute requisite benches
    B. It works on a framework to facilitate consistent decision making in bankruptcy
    C. It reconstitutes an Oversight Committee to operate banking ordinance
    D. It works on a framework to facilitate consistent decision making in insolvency
    E. All of these


Answer: Option E

Q3. Who has appointed as the CEO of Bank of India by ACC?

    A. Sunil Mehta
    B. Dinabandhu Mahapatra
    C. Melwyn Rego
    D. Rajkiran Rai G
    E. None of them


Answer: Option B

Q4. JLF stands for which of the following?

    A. Joint Leased Fund
    B. Joint Lending Forum
    C. Joint Lender’s Forum
    D. Joint Lender’s Federation
    E. None of these


Answer: Option C

Q5. The head office of Union Bank of India is situated at which city?

    A. New Delhi
    B. Mumbai
    C. Kolkata
    D. Chennai
    E. Gurugram


Answer: Option B

Q6. CRR stands for which of the following?

    A. Credit Reserve Ratio
    B. Credit Reverse Ratio
    C. Cash Reserve Ratio
    D. Cash Reverse Ratio
    E. None of these


Answer: Option C

Q7. Which of the following statements is true about Deflation?

    A. It is an increase in the price of goods and services that projects Indian Economy
    B. It happens when goods are fewer and buyers are more
    C. It happens when there are more demand and less supply
    D. It is a continuous decrease in the prices of goods and services
    E. None of these


Answer: Option D

Q8. PLR stands for which of the following?

    A. Premium Interest Rate
    B. Prime Interest Rate
    C. Prime Investment Rate
    D. Premium Investment Rate
    E. None of these


Answer: Option B

Q9. Which of the following is true about FII?

    A. It is used to denote an investor mostly in the form of an institution
    B. It proposes to invest in Indian Market
    C. It generally purchases in large volumes which has an impact on stock markets
    D. It includes Pension Funds, mutual funds etc.
    E. All of these


Answer: Option E

Q10. IPO stands for which of the following?

    A. Initial Payment Offering
    B. Initial Public Offering
    C. Intermediate Public Offering
    D. Immediate Payment Offering
    E. None of these


Answer: Option B

Q1. What is the main feature of MUDRA Bank?

    A. It will provide the loan to buy house
    B. It will give loans to small entrepreneurs up to 10 Lakh
    C. It will provide education loan to the students
    D. It will sanction loan to buy land for agriculture
    E. None of these


Answer: Option B

Q2. What is SIDBI?

    A. Software Industries Development Bank of India
    B. State Industries Development Bank of India
    C. Small Industries Development Bank of India
    D. Steel Industries Development Bank of India
    E. None of these


Answer: Option C

Q3. Which of the following statements is/are of true about Sensex?

    A. It is an indices of stock market
    B. It is an index to measure the ‘market’s sentiment’
    C. It is a figure indicating the relative prices of shares on the exchange
    D. It is also known as the Sensitive Index
    E. All of these


Answer: Option E

Q4. NBFC stands for which of the following?

    A. National Banking Financial Company
    B. Non-Banking Financial Company
    C. Non-Borrowing Financial Company
    D. National Banker’s Financial Company
    E. None of these


Answer: Option B

Q5. Which of the following is not a Credit Rating Agency of India?

    A. CRISIL
    B. ICRA
    C. SEBI
    D. Fitch Ratings
    E. None of these


Answer: Option C

Q6. SEZ stands for which of the following?

    A. Special Economic Zone
    B. Standard Economic Zone
    C. Sectional Economy Zone
    D. Sub-Urban Economic Zone
    E. None of these


Answer: Option A

Q7. Who is the chairman of SEBI?

    A. Harsh Kumar Banwala
    B. Ajay Tyagi
    C. T.S Vijayan
    D. Dr. Sanjeev Misra
    E. None of them


Answer: Option D

Q8. Which of the following statements is/are true about KYC?

    A. It stands for ‘Know Your Customer’
    B. It is the process of banking business identifying and verifying the identity of it’s clients
    C. Its main purpose is to stop illegal money
    laundering
    D. It prevents identity theft and fraud
    E. All of these


Answer: Option E

Q9. In which city the head office of NABARD is situated?

    A. New Delhi
    B. Lukhnow
    C. Mumbai
    D. Chennai
    E. Thiruvananthapuram

Answer: Option C

Q10. Which of the following statements is not true about Bharatiya Mahila Bank?

    A. It is an Indian Financial Services Banking Company based in Mumbai
    B. It has merged with State Bank of India
    C. It accepts deposits only from women
    D. It lends money mainly to women
    E. All are true


Answer: Option C

Q1. AEZ stands for which of the following?

    A. Agri-products Export Zone
    B. Agricultural Export Zone
    C. Agricultural Economy Zone
    D. Agriculture Expert’s Zone
    E. None of these


Answer: Option B

Q2. What do you mean by Amount at Risk?

    A. It is the due amount of loan
    B. It is the balance of sum payable not covered by reserves
    C. It is the total value of NPA
    D. It denotes the below minimum balance in a bank account
    E. None of these


Answer: Option B

Q3. ABM stands for which of the following?

    A. Automatic Balance Machine
    B. Automated Balance Machine
    C. Auto-generated Banking Machine
    D. Automated Banking Machine
    E. None of these


Answer: Option D

Q4. Which of the following statements is not true about bankruptcy?

    A. It is a condition in which a firm is unable to meet its obligations
    B. It is a condition in which a person can not meet his/her liabilities
    C. In bankruptcy, all the assets of a company are surrendered to the court for administrator
    D. It is the state of being completely penny less
    E. None of these


Answer: Option E

Q5. Which of the following banks has the largest number of branches in foreign countries?

    A. Bank of India
    B. Bank of Baroda
    C. Corporation Bank
    D. Dena Bank
    E. Vijaya Bank

Answer: Option B

Q6. General Insurance does not provide protection in which of the following?

    A. Cattle Insurance
    B. Medical Insurance
    C. Crop Insurance
    D. Fire Insurance
    E. None of these


Answer: Option B

Q7. What do you mean by Minimum Cash Reserve?

    A. It is a percentage of Capital in Bank
    B. It is a percentage of reserves in Bank
    C. It is a percentage of aggregate deposits of the bank
    D. It is A percentage of aggregate loans and advances of the bank
    E. None of these


Answer: Option C

Q8. Which of the following is a Demat Account?

    A. Accounts which facilitate repayment of a loan taken from that bank.
    B. Accounts which can be operated through the internet banking facility
    C. Zero balane accounts
    D. Accounts in which various companies’ shares are traded in electronic form
    E. None of these


Answer: Option D

Q9. Currency notes those are deposited in the currency chest are the property of which of the following?

    A. SBI
    B. Respective Bank
    C. RBI
    D. Respective Bank
    E. None of these


Answer: Option C

Q10. What is mortgage?

    A. Security on the immovable property for a loan
    B. Security on the movable property for a loan
    C. Concession on the immovable property
    D. Facility on the immovable property
    E. None of these


Answer: Option A

Q1. Which term is known as a fixed deposit receipt that is kept with the bank for its safety?

    A. Safe deposit
    B. Valid Safe deposit
    C. Safe custody
    D. Locker
    E. None of these


Answer: Option C

Q2. Which of the following is the primary regulator of Banking business?

    A. State Government
    B. Central Government
    C. Parliament
    D. RBI
    E. None of these


Answer: Option D

Q3. A bank can refuse open an account on behalf of which of the following?

    A. Artificial Persons
    B. Arrested Person
    C. Convicted Person
    D. Undesirable Person
    E. None of them


Answer: Option D

Q4. What is the purpose of reporting by the banks about suspicious transactions to the anti money laundering committee?

    A. To combat finance of terrorism
    B. To check the inflow of crime money
    C. To check inflow of the money earned out of sale
    of narcotics
    D. To check the hawala transactions
    E. All of the above


Answer: Option E

Q5. If a non – banking financial company wants to collect public deposits it is governed by which Act?

    A. Banking companies Act
    B. RBI Act 1934
    C. Central Government
    D. Companies Act 1956
    E. None of these


Answer: Option D

Q6. Which of the following statements is/are true about inbsolvency?

    A. It can cause bankruptcy
    B. A company is declared as insolvent when they are unable to pay their debits back on time
    C. A person, who is insolvent, can take certain steps towards a resolution
    D. It is a financial fall
    E. All of these


Answer: Option E

Q7. What is Lead Bank?

    A. It offer loan to the leading banking institutions
    B. It is a bank which coordinates the banking institutions in the district
    C. It can’t set up branches
    D. It was implemented in 1975
    E. None of these


Answer: Option B

Q8. What is DCP?

    A. Demonetization Control Plan
    B. Debit Credit Plan
    C. Department Credit Plan
    D. District Credit Plan
    E. None of these


Answer: Option D

Q9. The head-office of Indian Overseas Bank is situated in which city ?

    A. Chennai
    B. Mumbai
    C. New Delhi
    D. Pune
    E. Panaji


Answer: Option A

Q10. What is FDI?

    A. Frozen Direct Investment
    B. Foreign Direct Investment
    C. Functional Direct Investment
    D. Functional Debit Investment
    E. None of these


Answer: Option B

Q1. What is the main source of National Income of India ?

    A. Agriculture
    B. Industrial Sector
    C. Trade Sector
    D. Tourism Sector
    E. Service Sector


Answer: Option E

Q2. CBS stands for which of the following?

    A. Core Banking Software
    B. Core Banking System
    C. Core Banking Solution
    D. Core Banking Service
    E. Core Banking Section


Answer: Option C

Q3. What do you mean by NNP of a country?

    A. New National Product
    B. Net New Product
    C. National Net Product
    D. Net National Product
    E. None of these


Answer: Option B

Q4. What do mean by Mixed Economy?

    A. Co-Existence of Rich and Poor
    B. Co-Existence of Public and Private Sectors
    C. Co-Existence of agricultural and industrial Sectors
    D. Co-Existence of Small and Large Industries
    E. None of these


Answer: Option B

Q5. What do you mean by Net National Product of a country?

    A. GDP minus depreciation allowances
    B. GNP plus depreciation allowances
    C. GNP minus depreciation allowances
    D. GDP plus depreciation allowances
    E. GDP minus Net Income from Abroad


Answer: Option C

Q6. MAT stands for which of the following?

    A. Maximum Alternate Tax
    B. Maximum Alternate Time
    C. Maximum Alternate Time
    D. Minimum Alternate Tax
    E. None of these


Answer: Option D

Q7. What is Green Index?

    A. It is the total export of a nation
    B. It is the nation’s wealth according to GNP per Capita
    C. It is the nation’s wealth according to the provisions of control on Green House Gases
    D. It is the nation’s wealth according to GDP per Capita
    E. It is the total wealth from the forest area


Answer: Option C

Q8. NDTL stands for which of the following?

    A. Net Demand & Time Liabilities
    B. Net Demand & Tax Liabilities
    C. New Demand & Tenure Liabilities
    D. National Deposits & Total Liabilities
    E. None of these


Answer: Option A

Q9. Which is not an Apex Institution?

    A. NABARD
    B. SIDBI
    C. State Co-operative Bank
    D. SBI
    E. None of these


Answer: Option B

Q10. NAV stands for which of the following?

    A. Net Average Value
    B. Net Actual Value
    C. Net Asset Value
    D. Net Access Value
    E. National Asset Value


Answer: Option C