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Banking Awareness Quiz 10 – Pract...

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Banking Awareness Quiz 10 – 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 10 – 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 10 – 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

1. Which of the following describes the term ‘legal tender?


    A. Any object legally used as money in a country
    B. Money which cannot legally be refused in discharge of a debt
    C. Bank notes where they are in legal circulation
    D. Notes or coins other than the counterfeited ones
    E. None of these


Answer: Option B

2. What is the share of sponsor bank in the capital of RRB?


    A. 35%
    B. 49%
    C. 51%
    D. 71%
    E. None of these


Answer: Option A

3. The word NELP is associated with _____


    A. Discovery of Oil & Natural Gas
    B. National Highway extension
    C. Communication
    D. Space research
    E. Power sector


Answer: Option A

4. What is the base year for WPI (Whole Sale Price Index) ?


    A. 2004-05
    B. 2003-04
    C. 2002-03
    D. 2005-06
    E. None of these


Answer: Option A

5. RBI increases Repo Rate to control which economic situation of economy ?


    A. Deflation
    B. Inflation
    C. Recession
    D. Stagflation
    E. None of these


Answer:Option B

6. A limited company is ________


    A. In which shareholders possess the ownership limited to their paid up capital
    B. In which shares are issued
    C. A company of Govt. ownership
    D. A registered company
    E. None of these


Answer: Option A

7. What is the objective of Kisan call center?


    A. To ensure the supply of fertilizer to farmers on suitable rates
    B. Distribution of HYV seeds
    C. To provide agriculture credit at concessional rate
    D. To provide consultancy service related to agriculture
    E. None of these


Answer: Option D

8. Moral Suasion is ——-


    A. A term descriptive of corrupt practices of many banks
    B. A term applied to banks that are conservative in their banking practices
    C. Persuasion of banks to adhere to central bank desires
    D. It denotes conduct or character that is bad and vice
    E. None of these


Answer: Option C

9. Which of the following rates is not determined by RBI ?


    A. Bank Rate
    B. CRR
    C. SCR
    D. PLR
    E. MSF


Answer: Option D

10. Which of the following were called the Presidency Bank ?

(A) Bank of Bengal , Bank of Madras, Bank of India.
(B) Bank of Bengal , Bank of Bombay, Bank of Madras
(C) State Bank of India, Punjab National Bank, Allahabad Bank


    A. Only A
    B. Only B
    C. Only C
    D. Both A & B
    E. Only A & C


Answer: Option B

1. When was New Bank of India merged with Punjab National Bank ?


    A. 4 sept 1993
    B.4 sept 1983
    C. 1 July 1935
    D. 2 October 1995
    E. 2 April 1993


Answer: Option A

2. Which of the following deposits is not accepted by commercial banks ?


    A. Fixed Deposit
    B. Demand Deposit
    C. Saving Deposit
    D. Public Account Deposit
    E. None of these


Answer: Option D

3. Which of the following in not the method of measuring National Income ?


    A. Product method
    B. Income Method
    C. Consumption Method
    D. Production method
    E. None of these


Answer: Option D

4. What is the total No. of PSEs companies listed in Navratna status ?


    A. 9
    B. 10
    C. 16
    D. 12
    E. None of these


Answer: Option C

5. Who is the chairman of Indian oil corporation Ltd ?


    A. N.C. Jha
    B. B. Ashok
    C. A.K. Hazarika
    D. D. Subbarao
    E. Chandra Sekhar Verma


Answer: Option B

6. The International monetary fund (IMF) is an organization of ________ countries


    A. 237
    B. 126
    C. 188
    D. 430
    E. 200


Answer: Option C

7. According to RBI Governor, which one of the following is a major challenge to its monetary policy ?


    A. Policies of World Trade Organisation
    B. High cost of imports
    C. Fiscal deficit
    D. Inflation and supportive recovery of Economy
    E. None of these


Answer: Option D

8. Which one of the following denomination of plastic notes is proposed to be introduced by RBI ?


    A. 5
    B. 10
    C. 20
    D. 50
    E. 100


Answer: Option B

9. Which of the following documents is/are generally sought for Housing loan approval ?

(A) Residence proof
(B) Latest salary slip
(C) Last 6 months bank statements


    A. Only A
    B. Only B
    C. All A, B and C
    D. A and C
    E. None of these


Answer: Option C

10. Whether loss-making banks can make donations?


    A. Upto Rs. 5 lakh only
    B. No
    C. Upto Rs. 8 lakh only
    D. Upto Rs. 2 lakh only
    E. None of these


Answer: Option A

1. The Basic Banking Services of a Bank include/includes _______.

(A) Services relating to deposit accounts
(B) Remittance facilities
(C) Collection facilities


    A. Only A
    B. All A, B and C
    C. Only B
    D. Only C
    E. None of these


Answer: Option B

2. Which of the following are not insured by the Deposit Insurance and Credit guarantee Corporation(DICGC)?


    A. Commercial Banks
    B. Local Area Banks
    C. Regional Rural Banks
    D. Primary Co-operative Societies
    E. None of these


Answer: Option D

3. In which of the following sector/sectors FDI is not allowed in India, under the automatic route as well as the government route?

(A) Gambling and Betting
(B) Atomic Energy
(C) Retail Trading (Except single brand product retailing)


    A. All A, B and C
    B. Only A
    C. Only B
    D. Only C
    E. None of these


Answer: Option A

4. In addition to cash dispensing, the other services/facilities available at ATMs includes _____.

(A) Account information
(B) Purchase of Re-load Vouchers for mobiles
(C)Loan account enquiry


    A. Only A
    B. Only B
    C. Only C
    D. All A, B and C
    E. None of these


Answer: Option D

5. An EEFC (Exchange Earner’s Foreign Currency) account can be held only in the form of ____.


    A. Saving Account
    B. Current Account
    C. Fixed Deposit Account
    D. Nostro Account
    E. None of these


Answer: Option B

6. Reserve Bank of India relies on data submitted by Banks and quality of data is of great importance. In order to meet the need for correct and consistent data, RBI has initiated the project on ADF. What is the full form of ADF?


    A. Automated Data Flow
    B. Automatic Document Feeder
    C. Automatically Defined Function
    D. Automatic Direction Finder
    E. None of these


Answer: Option A

7. Consider the following:-

(A) Public Sector Undertakings
(B) Private Sector Companies
(C) Ministries and Departments

Which among the above are eligible for Indira Gandhi Rajbhasha Awards for outstanding achievements in the implementation of Hindi?


    A. A & C
    B. A & B
    C. B & C
    D. A, B & C
    E. None of these


Answer: Option A

8. Where is located India’s first operational special economic zone (SEZ) ?


    A. Ahmedabad
    B. Surat
    C. Jaipur
    D. Indore
    E. None of these


Answer: Option D

9. Who among the following 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 these


Answer: Option B

10. Under which among the following acts, Hawala transactions are banned in India ?


    A. FERA
    B. FEMA
    C. FRBMA
    D. AFSPA
    E. None of these


Answer: Option D

1. Consider the following:

(A) Liquidity Adjustment Facility
(B) Devaluation of Currency
(C) Open Market Operations

Which among the above are Fiscal Measures?


    A. A & B
    B. B & C
    C. A & C
    D. Only B
    E. None of these


Answer: Option D

2. Which among the following terms is commonly not associated with Budgets in India?


    A. Outcome Budget
    B. Gender Budget
    C. Austerity Budget
    D. Gross Budgetary Support
    E. None of these


Answer: Option C

3. Which of the following is not helpful in controlling the money supply ?


    A. Changes in reserve requirements
    B. CRR
    C. Open market policy
    D. Bank rate
    E. None of these


Answer: Option C

4. Which of the following is a form of “Small Savings Bank” popular among the poor or children?


    A. Core Banking
    B. Credit Banking
    C. Debit Card
    D. Merchant Banking
    E. Piggy Banking


Answer: Option E

5. Which of the following statement(s) is/are not true about overdraft ?

It occurs when the account balance reaches the level of minimum balance.
(B) It is a form of credit extended by a creditor when the account balance reaches zero.
(C) Overdrafts allow bank clients to withdraw money even when there are no funds in the account.


    A. Only A and B
    B. Only B
    C. Only A and C
    D. Only A
    E. Only B and C


Answer: Option D

6. Which statement correctly describes ‘Bridge financing’ ?


    A. Finance provided to bridge the gap between poor and the rich.
    B. Bridge financing begins at the end of the first loan and ends with the start of the second loan.
    C. Bridge financing ends at the start of the first loan and starts with the end of the second loan.
    D. Finance provided to bridge the gap between Rural and the Urban people.
    E. Bridge financing is provided to fill the social gaps.


Answer: Option B

7. A very large loan extended by a group of small banks to a single borrower, especially corporate borrowers is known as _______.


    A. Syndicated Loan
    B. Group Loan
    C. Standard Loan
    D. Organised Loan
    E. None of these


Answer: Option A

8. The public debt office function under the control of __________________


    A. Ministry of Finance
    B. Reserve Bank of India
    C. SEBI
    D. IRDA
    E. None of these


Answer: Option B

9. Consider the following

(A) Goodwill
(B)Trademarks, Copyrights or Patents
(C) Government Securities
(D) Tax Refunds
(E) Certificates of Deposit

Which of these are the examples of liquid assets ?


    A. A, B, and C
    B. C and D
    C. C, D and E
    D. A, B and E
    E. All of these


Answer: Option B

10. Which of the following describes Hot Money?

(A) Flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts.
(B) Speculative capital flows that move very quickly in and out of markets.
(C) Capital that is responsible for stabilizing domestic money market.


    A. Only A and C
    B. Only B
    C. Only A and B
    D. Only A
    E. None of these


Answer: Option C

1. When the exchange rate is adjusted so that an identical good in two different countries has the same price when expressed in the same currency. It is called______.


    A. Purchasing Power Parity
    B. Bank Rate
    C. Wage Rate
    D. Exchange Rate
    E. None of these


Answer: Option A

2. Prior approval (as also a licence) of RBI is required for opening_______.

(A) Personal banking branches
(B) Merchant banking branches
(C)Asset recovery branches


    A. Only A and C
    B. Only B
    C. All A,B and C
    D. Only A
    E. None of these


Answer: Option C

3. Treasury bill is ___________


    A. Negotiable security
    B. Non negotiable security
    C. No security at all
    D. Quasi negotiable security
    E. None of these


Answer: Option A

4. Banking Regulation Act 1949 does not apply to _________


    A. Nationalized Banks
    B. Foreign Banks having branches in india
    C. State Bank of India and its associates Banks
    D. Primary agricultural credit societies and co-operative land mortgage banks
    E. None of these


Answer: Option D

5. The various means of Electronic Payment Systems Includes________

(A) Credit Card
(B) Debit Card
(C) ATM Card


    A. Only A
    B. Only B
    C. Only C
    D. All A,B & C
    E. None of these


Answer: Option D

6. Which of the following will replace the present tax structure like income tax, corporate tax etc from next year ?


    A. GST
    B. CENVAT
    C. DTC
    D. MODVAT
    E. None of these


Answer: Option C

7. What is the maximum amount of loan available to individuals on securities of demat shares?


    A.`10 lacs
    B. `15 lacs
    C. `20 lacs
    D. `25 lacs
    E. None of these


Answer: Option C

8. Which one of the following monitors the liberalized remittance scheme, through which resident individuals may remit up to USD 200,000 per financial year for any permitted capital and current account transactions or a combination of both ?


    A. Ministry of Finance
    B. Ministry of Overseas Indian Affairs
    C. Department of Posts
    D. Reserve Bank of India
    E. None of These


Answer: Option C

9. What is the minimum period for which an NRE (Non Resident External) term deposit account can be opened?


    A. 12 months
    B. 36 months
    C. 60 months
    D. 52 months
    E. None of these


Answer: Option A

10. Which of the following is not true about RTGS transaction?


    A. The minimum amount to be remitted through RTGS is Rs. 2 lakh.
    B. There is no ceiling for RTGS transactions.
    C. Transactions are settled in batches
    D. Inward transactions are free
    E. None of these


Answer: Option C

1. If a credit card is lost, the card member should call up the Customer Helpline number and he says his request for deactivating the card. This is called


    A. Hot listing
    B. Cross listing
    C. Short listing
    D. Blacklisting
    E. None of these.


Answer: Option A

2. A cheque which is issued today must be presented before at bank for payment within a stipulated period. After expiry of that period, no payment will be made and it is then called ———.


    A. Mutilated Cheque
    B. Stale cheque
    C. Crossed cheque
    D. Open cheque
    E. None of these


Answer: Option B

3. Which of the following is not true about NPA in banks ?


    A. It is usually a loan that is not producing income
    B. It is created If a borrower misses paying his equated monthly installment (EMI) for 90 days.
    C. High NPA are a sign of good financial health.
    D. Asset Reconstruction Companies (ARC’s)buy bank NPA at a discount along with the right to recover the money.
    E. None of these


Answer: Option C

4. What is the maximum population limit for a commercial bank branch to be declared as rural branch?


    A. 1 lac
    B. 2 lac
    C. 4 lac
    D. 5 lac
    E. None of these.


Answer: Option A

5. What does Current Ratio mean?


    A. company’s ability to pay back its long-term liabilities
    B. it is the ratio of net debt to total liabilities
    C. it is the ratio of liquid assets to current liabilities
    D. company’s ability to pay back its short-term liabilities
    E. None of these


Answer: Option D

6. Interest spread is a commonly used term in banking. What does it describes ?


    A. The sum total of discount and interest from loans.
    B. aggregate deposits plus aggregate advances.
    C. total interest earned over total interest expended.
    D. total interest earned less the non-interest expenses.
    E. None of these


Answer: Option C

7. Consider the following statements

(A)The Kisan Credit Card (KCC) Scheme was introduced in August 2000.
(B)Allied and non-farm activities are also covered under the Scheme.
(C) Validity period of the KCC is 3 years.

Which of the statements given above is/are true ?


    A. Only A
    B. Only B
    C. Only C
    D. All A, B and C
    E. None of these


Answer: Option B

8. Recently RBI has directed Banks to issue prepaid Payment Instruments to listed Corporates. Which of the following are examples of prepaid Payment Instruments

(A) smart cards
(B) paper vouchers
(C) mobile accounts
(D) internet wallets


    A. Only A and B
    B. Only B and C
    C. Only A, B and D
    D. Only A, C and D
    E. All A, B, C and D


Answer: Option E

9. Which of the following Private sector Banks has launched personal loan Swift?


    A. Axis Bank
    B. ICICI Bank
    C. HDFC Bank
    D. IDBI Bank
    E. None of these


Answer: Option C

10. The crop insurance scheme is being implemented at which among the following levels under the National Agricultural Insurance Scheme (NAIS)?


    A. Village
    B. Panchayat
    C. District
    D. State
    E. None of these


Answer: Option C

1. “Honours your Trust” is a Tag line of which bank?


    A. Andhra Bank
    B. Vijaya Bank
    C. Dena Bank
    D. UCO Bank
    E. None of these


Answer: Option C

2. Which among the following is / are the main objective(s) of National Green Crops ?


    A. Educate youngsters about environment and eco-systems.
    B. Prosecute and Punish the violators of Environment laws.
    C. Promote Green Products.
    D. All of above
    E. None of these


Answer: Option A

3. The Finance Ministry released the draft national public-private partnership (PPP) policy. Which of the following facts given below in this regard are NOT TRUE?

(A) PPP is aimed at creating a framework for implementing infrastructure projects across sectors.
(B) It addresses the issues concerning definition of various terms and also processes so that a clear and consistent position can be adopted by stake holders, including center, states and private investors.
(C) The government is envisaging an investment of USD 7 trillion in infrastructure sector during the 12th Five-Year Plan (2012-17).


    A. Only C
    B. Only A and B
    C. Only B and C
    D. All of these
    E. None of these


Answer: Option A

4. Which of the following organizations is created specially for providing credit to small and medium enterprises in India ?


    A. NABARD
    B. SIDBI
    C. ECGC
    D. AMFI
    E. None of these


Answer: Option B

5. What is full form of’NBFC’as used in financial sector ?


    A. New Banking Finance Corporation
    B. Non Banking Finance Company
    C. New Business Formation Company
    D. Net Banking & Finance Cooperative
    E. None of these


Answer: Option B

6. Which of the following terms is NOT used in the field of Banking / Finance ?


    A. Goods & Services
    B. Refund
    C. Tax Deducted at Source
    D. Fundamental Duties of a citizen
    E. Relief to exporters


Answer: Option D

7. What does the letter V denotes in the term VAT as used in banking world?


    A. Valuable
    B. Various
    C. Vendor
    D. Very
    E. Value


Answer: Option E

8. Which of the following is called the World Bank?


    A. International Monetary Fund
    B. Asian Development Bank
    C. World Trade Organisation
    D. International Bank for Reconstruction and Development
    E. None of these


Answer: Option D

9. We frequently read about ‘ MFI’ in newspapers. What is the full form of this term, which is used in financial sector?


    A. Micro Finance Institutions
    B. Micro Functional Issues
    C. Mutual Funds in India
    D. Monetary Forum of India
    E. Monetary and Financial Institutes


Answer: Option A

10. With reference to Banking, The 15th day of a month is known as _________


    A. Banking Day
    B. Customer’s Day
    C. Holiday
    D. Complaints Day
    E. None of these


Answer: Option B

1.’A customer is a person who maintains an account with a Bank’ This definition of the customer is as per _____________.


    A. Banking Regulation Act,1949
    B. Negotiable Instrument Act,1881
    C. RBI Act,1934
    D. KYC guidelines of RBI
    E. None of these


Answer: Option D

2. Which of the following cannot be endorsed ?


    A. Fixed deposit receipt
    B. Bank draft
    C. Promissory note
    D. Cheque
    E. None of these


Answer: Option A

3. Which of the following conducts supervision over Commercial Banks, Financial Institutions, NBFCs and other Para – Banking financial institutions in India ?


    A. SEBI
    B. Ministry of Finance
    C. Board for Financial Supervision, RBI
    D. Ministry of Corporate Affairs
    E. None of these


Answer: Option C

4. The Export – Import Bank of India was set up in _______


    A. April 1982
    B. January 1982
    C. April 1970
    D. July 1969
    E. None of these


Answer: Option B

5. In India, the Real Time Gross Settlement has been implemented by ___________


    A. SEBI
    B. IRDA
    C. RBI
    D. Ministry of Finance
    E. None of these


Answer: Option C

6. The maximum no. of transactions by a customer by using ATM of other Bank is _________


    A. 8 per month
    B. 5 per month
    C. 2 per month
    D. 3 per month
    E. None of these


Answer: Option D

7. The full form of SPNS is __________


    A. Shared Payment Network System
    B. Sharing Process Network System
    C. Shared Procedural Network System
    D. Shortest Possible Networking System
    E. None of these


Answer: Option A

8. The Tagline “Where every individual is committed” is associated with which of the following Banks ?


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


Answer: Option B

9. “Doha Development Round” is related with which of the following organization?


    A. World Bank
    B. World Trade Organisation
    C. International Monetary Fund
    D. Asian Development Bank
    E. None of these


Answer: Option B

10. The rate at which Banks borrow money from the Reserve Bank is called ___________.


    A. Repo rate
    B. Reverse repo rate
    C. Bank rate
    D. Base rate
    E. None of these


Answer: Option A

1. The Banking Ombudsman Scheme 2006 Covers _________

(A) Commercial banks
(B) Regional rural banks
(C) Scheduled Primary Co-operative Banks


    A. Only A
    B. Only B
    C. All A, B and C
    D. Only C
    E. None of these


Answer: Option C

2. In case of a demand draft is issued, the liability of the bank will be _________


    A. Demand liability
    B. Time liability
    C. Current liability
    D. Long term liability
    E. None of these


Answer: Option A

3. All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC. What is the full form of DICGC ?


    A. Deposit Insurance and Credit Guarantee Company
    B. Deposit Insurance and Credit Guarantee Corporation
    C. Direct Insurance and Credit Guarantee Corporation
    D. Direct Insurance and Credit Guarantee Company
    E. None of these


Answer: Option B

4. Name a Poverty Eradication Programme in which banks played the dominant role?


    A. IRDP
    B. MNP
    C. Rojgar Bima Yojana
    D. Jawahar Rojgar Yojana
    E. None of these


Answer: Option A

5. Which pair is not correct ?


    A. EXIM Bank – Financing for export-import
    B. RBI – Banker’s bank
    C. IDBI – Industrial Finance
    D. FCI – Financial assistance to commercial institutions.
    E. All are correct


Answer: Option D

6. The minimum paid-up capital requirement at present for new Private Bank in India is ——-.


    A. ` 100 crore
    B. ` 200 crore
    C. ` 500 crore
    D. ` 600 crore
    E. None of these


Answer: Option C

7. CRISIL ——


    A. Evaluates the credit documents of a company
    B. Provides financial assistance to industries
    C. Provides finance for rural areas
    D. Promotes exports
    E. Promotes imports


Answer: Option A

8. According to Banking Regulation Act, RBI can fix SLR up-to the ceiling of ——–


    A. 40%
    B. 50%
    C. 60%
    D. 75%
    E. None of these


Answer: Option A

9. India Development Bond was issued in 1991-92 by ——–.


    A. SBI
    B. RBI
    C. UTI
    D. NHB
    E. None of these


Answer: Option A

10. Which of the following is not helpful in controlling money supply?


    A. Free Market Policy
    B. CRR
    C. Bank Rate
    D. Change in Margin Requirement
    E. None of these


Answer: Option A

1. The first public sector bank in India which obtained license for Internet Banking from RBI is —


    A. Punjab National Bank
    B. Oriental Bank of Commerce
    C. Corporation Bank
    D. State Bank of India
    E. None of these


Answer: Option A

2. Which of the following measures can check Inflation?


    A. Surplus Budgeting
    B. Increase in direct taxation
    C. Curtailment in public expenditure
    D. All of the above
    E. None of these


Answer: Option D

3. According to the Banking Regulation Act, nationalized bank can release a share of total paid up capital up to maximum ceiling of ——–.


    A. 40%
    B. 49%
    C. 51%
    D.73%
    E. 100%


Answer: Option A

4. The RBI’s methods of credit control may be broadly divided into ——


    A. Quantitative and Qualitative
    B. Open and Close
    C. Monetary and Fiscal
    D. Rural and Urban
    E. None of these


Answer: Option A

5. Which one of the following is not a liability of commercial banks?


    A. Time deposits
    (2) Borrowing from Central Bank
    (3) Security holdings
    (4) Demand deposits
    (5) None of these


Answer: Option C

6. The oldest Central Bank in the world is the ——


    A. Reserve Bank of India
    B. Bank of England
    C. U S Federal Reserve
    D. State Bank of India
    E. None of these


Answer: Option B

7. General Insurance Corporation of India (GIC) was formed in ———


    A. 1972
    B. 1973
    C. 1974
    D. 1975
    E. None of these


Answer: Option A

8. ‘Open Market Operations’ mean sale or purchase in the open market of ——


    A. Foreign Exchange
    B. Goods and Services
    C. Gold Bullion
    D. Government Securities
    E. None of these


Answer: Option D