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Banking Awareness Quiz 9 – Practi...

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Banking Awareness Quiz 9 – 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 9 – 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 9 – 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 among the following is also known as Pacific Rim trade IBSA ?


    A. APEC
    B. ASEAN
    C. SAARC
    D. IBSA
    E. IBRD


Answer: Option B

2. Which one of the following will setup core banking infrastructure for rural banks ?


    A. RBI
    B. NABARD
    C. SIDBI
    D. IBA
    E. None of these


Answer: Option B

3. Who is the Ex-Officio chairmain of Niti Aayog ?


    A. The President
    B. The Finance Minister
    C. The Prime Minister
    D. The Chief of CSO
    E. None of these


Answer: Option C

4. Which of the following is correct regarding the Gross Domestic Saving in India ?


    A. Contribution of household sector is the largest
    B. Contribution of govt. sector is the largest
    C. Contribution of corporate sector is the largest
    D. All of the above
    E. None of these


Answer: Option A

5. Gilt-edged market means________


    A. Bull market
    B. Market of govt. securities
    C. Market of guns
    D. Market of Pure metals
    E. None of these


Answer: Option B

6. Who is the Chairman of ISRO at present?


    A. Pradeep Kumar
    B. K. Radhakrishnan
    C. A.S. Kiran Kumar
    D. Rakesh Sood
    E. None of these


Answer: Option C

7. What do you understand by “Para Banking” services ?


    A. Eligible financial services rendered by bank
    B. Utility services provided by bank
    C. Services provided through business correspondent
    D. Services provided to armed force personnel
    E. None of these


Answer: Option A

8. In the context with Investment what are A, AA+ and AAA ?


    A. Stock exchange Index
    B. Credit ratings
    C. Market stability Index
    D. Profit equity Index
    E. None of these


Answer: Option B

9. High powered money is _________


    A. Bank’s reserves at central banks
    B. All loans and advances of banks
    C. Money held by banks
    D. Currency held by public and reserves with the central bank
    E. None of these


Answer: Option A

10. A significant decrease in the demand for loans will force Banks to _________.


    A. Adjust their portfolios
    B. Sell securities to the central Bank
    C. Resort to borrowings
    D. Raise the prime lending rate
    E. None of these


Answer: Option A

1. The process of credit creation has the effect of ______


    A. Raising the real national income
    B. Raising the real wealth of a country
    C. Increasing the supply of money
    D. Decreasing the national debt
    E. None of these


Answer: Option C

2. Which of the following is not a function of commercial banks ?


    A. Acceptance of deposits
    B. Purchase and sale of foreign exchange
    C. Discounting bills of exchange
    D. Controlling credit expansion
    E. None of these


Answer: Option D

3. Which of the following is generally referred to as a ‘Broader’ measures of money supply ?


    A. M1
    B. M2
    C. M3
    D. M4
    E. None of these


Answer: Option C

4. The RBI has helped to finance India’s foreign Trade through ____


    A. NABARD
    B. EXIM Bank
    C. SBI
    D. IDBI
    E. None of these


Answer: Option B

5. A Maharatna company can invest which of of the following amounts independently for a project ?


    A. Rs 20.000 crore
    B. Rs 12,000 crore
    C. Rs 10,000 crore
    D. Rs 5000 crore
    E. None of these


Answer: Option D

6. The Tier – I Capital of Banks does not includes __________


    A. Paid up capital
    B. Statutory reserves
    C. Revaluation reserves
    D. Investment Fluctuation reserves
    E. None of these


Answer: Option C

7. Which of the following scheme is related with Financial Inclusion_ ?


    A. SABLA
    B. Swavalamban
    C. Swabhiman
    D. Adhaar
    E. None of these


Answer: Option C

8. With reference to Banking what is PCR ?


    A. Profit Credit Ratio
    B. Provision Credit Ratio
    C. Provision Coverage Ratio
    D. Provision Cash Ratio
    E. None of these


Answer: Option C

9. Goods and Services Tax (GST), would replace which of the following tax/taxes ?

A. Income Tax
(B) Corporate Tax
(C) Value Added Tax (VAT)


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


Answer: Option C

10. Agricultural taxation in India is difficult because of


    A. Scattered nature of land holdings
    B. Seasonality of production
    C. The fact that agriculture is not taxed any where in the world
    D. Increasing overhead cost of tax collection and the lack of political will
    E. None of these


Answer: Option D

1. Kisan Credit Card Scheme (KCC) was introduced in 1998-99 to improve the credit delivery to farmers. Which one of the following does not operate this scheme ?


    A. NABARD
    B. Co-operative Banks
    C. Regional Rural Banks
    D. Schedules Commercial Banks
    E. None of these


Answer: Option A

2. Which one of the following is a source of non-tax revenue for Government of India ?


    A. Import duty on cars
    B. Octroi at cheek points on roads
    C. Entrance fee on museums
    D. Excise duty on beverages
    E. None of these


Answer: Option C

3. Many a times we read in newspapers a term CBS. What does B denotes in the term ‘CBS’ ?


    A. Business
    B. Banking
    C. Base
    D. Bond
    E. None of these


Answer: Option B

4. The back bone of Indian economy is/are

A) Industry
(B) Agriculture
(C) Export


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


Answer: Option B

5. Small loans provided by the Banks to very poor families without any collateral security is popularly known as


    A. Personal finance
    B. Project finance
    C. Macro finance
    D. Micro finance
    E. None of these


Answer: Option D

6. “One Family One Bank” tagline is associated with a PSB Bank. The Public Sector Bank (PSB) in the Question is


    A. Canara Bank
    B. Bank of Maharashtra
    C. Bank of India
    D. Corporation Bank
    E. None of these


Answer: Option B

7. Co-operative movement in which of the following section of the indian economy has been highly successful ?


    A. Small scale sector
    B. Milk production
    C. Transport sector
    D. Energy sector
    E. None of these


Answer: Option D

8. An indicator currently used by United nations development programme (UNDP) for measurement of the quality of people’s life is known as


    A. Human development Index
    B. Average expectancy of life
    C. Per capital income
    D. Standard of living index
    E. None of these


Answer: Option A

9. Which of the following agencies was set up to promote new technological inputs in rural sector ?


    A. CAPART
    B. HUDCO
    C. SIDBI
    D. IDBI
    E. None of these


Answer: Option A

10. What are the objective taken by NABARD to improve the Rural Banking infrastructure ?


    A. For the development of education in rural area
    B. For the development of health of women and children
    C. For availability of food grains
    D. For insuring Prosperity and Progress integrated development of rural areas
    E. None of these


Answer: Option D

1 .”Open Market Operation” are controlled by —–.


    A. World Bank
    B. IMF
    C. RBI
    D. Finance Ministry
    E. None of these


Answer: Option C

2. Which are following statement(s) is/are correct definition of ‘payment balance’ in economy terms?

(A) This is transaction records among the country in which payment is made in currency other
than US dollar
(B)This is a transaction record between specific country and all countries.
(C) This is record of export/import of a country and difference of amount in US$


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


Answer: Option B

3. RBI has permitted non banking finance companies (NBFCs) to enter the _____ business through the joint venture route.


    A. Mutual Fund
    B. Insurance
    C. Universal Banking
    D. Merchant Banking
    E. None of these


Answer: Option B

4. Which of the following is not a part of the World Bank?


    A. IBRD
    B. ADB
    C. IDA
    D. IFC
    E. MIGA


Answer: Option B

5. Which of the following statements is/are true about the shareholding in the Regional Rural Bank (RRB)?

A. Central govt. holds 50% stake.
B. RBI holds 50% stake.
C. State government holds 15% stake.
D. Sponsored bank holds 35% stake.


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


Answer: Option C

6. Open market operations of RBI refers to


    A. Buying and selling of securities
    B. Trading in shares
    C. Auctioning of treasury bills
    D. Selling & purchasing of goods
    E. None of these


Answer: Option A

7. Which of the following is called “paper gold” ?


    A. Euro
    B. Dollar
    C. Yuan
    D. SDR
    E. None of these


Answer: Option D

8. Which of the following is/was Not included in the agenda set for the Banking Reforms in India ?


    A. Dismantling of administered interest rates
    B. Measure to strengthen risk management
    C. Promulgation of SARFAESI Act
    D. Promotion of the concept of easy credit to all with a guaranteed subsidy from the government
    E. None of these


Answer: Option D

9. In respect of which one of the following areas, Y. H. Malegam Committee has submitted its recommendations?


    A. Interest on Micro Finance loans
    B. Teaser loans
    C. Rural development
    D. Advances to agriculture
    E. None of these


Answer: Option A

10. The Agriculture Insurance Company was launched with the help of


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


Answer: Option C

1. Deflation refers to


    A. General decline in price of various commodities and services
    B. Price decline in specific sectors.
    C. Price decline in specific commodities.
    D. Sharp and sudden decline in foreign exchange reserves.
    E. None of these


Answer: Option A

2. Which of the following agencies/organizations in India maintains the Micro Finance Development and equity fund?


    A. Confederation of Industries in India.
    B. Indian Bank’s Association
    C. Small industries Development Bank of India
    D. Reserve Bank of India
    E. None of these


Answer: Option D

3. In the term of economics, the recession occurring two times with a small gap in between is known as


    A. Double Deflation
    B. Deflation
    C. Deep Recession
    D. Double Dip Recession
    E. None of these


Answer: Option A

4. Which of the following terms is not used in Economics?


    A. Balance of Payment
    B. Call Money
    C. National Debt
    D. Elasticity of Demand
    E. Boyle’s Law


Answer: Option E

5. The Reserve Bank of India is regularly revising upwards the repo and reverse repo rates. Why is this being resorted to?


    A. To check inflationary pressures in the economy
    B. To Curb growth of black money
    C. To encourage rise in interest rates on deposits.
    D. To make bank loan costlier
    E. None of these


Answer: Option A

6.’Sub Prime Lending’ is a term applied to the loans made to


    A. Those borrowers who do not have a good credit history.
    B. Those who wish to take loan against the mortgage of tangible assets.
    C. Those who have a good credit history and are known to bank since 10 years.
    D. Those borrowers who are most preferred customers of the bank.
    E. None of these


Answer: Option A

7. Expand the term ALM as used in Banking/Finance sector ?


    A. Asset Liability Mismatch
    B. Asset Liability Maturity
    C. Asset Liability Management
    D. Asset Liability Manpower
    E. None of these


Answer: Option C

8. Basel – II norms are associated with which of the following aspects of the banking industry?


    A. Risk Management
    B. Manpower Planning
    C. Retirement benefits for the employees
    D. Corporate governance
    E. None of these


Answer: Option A

9. What is stagflation?


    A. Inflation with growth
    B. Deflation with growth
    C. Inflation after deflation
    D. Inflation with recession
    E. None of these


Answer: Option D

10. SEBI is a


    A. Statutory body
    B. Advisory body
    C. Constitutional body
    D. Non-Statutory body
    E. None of these


Answer: Option A

1. Which statement is correct for the Planning Commission of India?


    A. It is not defined in Indian Constitution
    B. Its members and Deputy Chairman do not have any fixed working duration
    C. Its members do not require any minimum qualification.
    D. All above are true
    E. None of these


Answer: Option D

2. As per the new guidelines issued by RBI, the minimum required capital to set up a bank by corporate is set at ________.


    A. Rs. 600 crore
    B. Rs. 700 crore
    C. Rs. 400 crore
    D. Rs. 500 crore
    E. None of these


Answer: Option D

3. The economy of India is/are facing which of the following problem/problems now a days?

A. Huge trade deficits.
B. Disequilibrium in balance of payments.
C. High inflation and high food and commodity prices.


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


Answer: Option D

4. The primary monetary policy technique employed by the Reserve Bank of India is ________.


    A. Reserve requirements
    B. Open market operations
    C. Discount policy
    D. Margin requirements
    E. None of these


Answer: Option B

5. When a bank writes off a loan as bad, its ________.


    A. Total assets and total liabilities decreases by that amount.
    B. Total liabilities and capital decreases by that amount.
    C. Total assets and capital decreases by that amount.
    D. Total assets, total liabilities and capital decreases by the amount.
    E. None of these


Answer: Option C

6. Which of the following organisations maintains CRR ?


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


Answer: Option B

7. Many a times we read in financial newspapers about channel financing. ‘Channel Financing’ is/are associated with ________.

A) SME lending
B) Supply chain finance
(C) Retail lending


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


Answer: Option B

8. Invisible export means export of ________.


    A. Services
    B. Prohibited goods
    C. Unrecorded goods
    D. Goods through smuggling
    E. None of these


Answer: Option A

9. Which of the following is not the part of prudential guidelines issued by Reserve Bank of India?


    A. Provisioning
    B. Loan recovery rules
    C. Asset classification
    D. Income recognition
    E. None of these


Answer: Option B

10. Payment of a cheque cannot be made on a cash counter of bank, if the cheque is ___


    A. Bearer
    B. cross
    C. order
    D. All of above
    E. None of these


Answer: Option B

1. Bank draft is a _______


    A. letter from the bank
    B. cheque which a bank draws itself
    C. Instruction to a banker to collect a customer’s debt.
    D. Instruction not to honor a stop payment
    E. None of these


Answer: Option B

2. Which is not an example of near money?


    A. Bill of exchange
    B. Govt. bonds and debentures
    C. Equity shares of Ranbaxy company limited
    D. Treasury bills of the Government of India
    E. None of these


Answer: Option C

3. Demand pull inflation can be caused by money factors including _______


    A. a fall in the consumption expenditure
    B. a sharp increase in the unemployment
    C. a steep reduction in the direct taxation
    D. an increase in the income tax
    E. None of these


Answer: Option C

4. Which of the following is not a function of the commercial Bank ?


    A. Acting as a lender of last resort.
    B. Lending to the private and public sectors
    C. The provision of a cheque system for setting debts
    D. The provision of safe deposit facilities
    E. None of these


Answer: Option A

5. A customer does not require a bank account to obtain _________


    A. a loan
    B. an overdraft
    C. a cheque
    D. a banker’s draft
    E. None of these


Answer: Option D

6. Which of the following banks were merged into to form Imperial Bank of India ?


    A. Bank of Bengal
    B. Bank of Madras
    C. Bank of Bombay
    D. Bank of Gujarat
    E. 1, 2 and 3


Answer: Option E

7. Which bank launched India’s first loan disbursement card?


    A. SBI
    B. UTI
    C. IDBI
    D. ICICI
    E. None of these


Answer: Option D

8. For which of the following banks, did RBI introduce the scheme ‘protected disclosure’?


    A. Private Banks
    B. Co-operative Banks
    C. Foreign Banks
    D. 1 and 3
    E. 2 and 3


Answer: Option D

9.’The Decade of Action for Road safety’ campaign by ___________ was launched in India recently.


    A. World Bank
    B. UNO
    C. WTO
    D. SAARC Nations
    E. None of these


Answer: Option B

10. External Commercial Borrowings is a part of _________


    A. Balance of Payment
    B. Balance of Trade
    C. Current Account
    D. Capital Account
    E. None of these


Answer: Option D

10. What is the current duration of New Foreign Trade Policy?


    A. 2004-2009
    B. 2009-2014
    C. 2010 -2015
    D. 2007-2012
    E. None of these


Answer: Option B

2. Adequacy of bank’s liquidity position depends upon ______


    A. Source of funds
    B. Anticipated future funding needs
    C. Present and future earnings capacity
    D. All of above
    E. none of these


Answer: Option A

3. RBI’s open market operation transactions are carried out with a view to regulate _______


    A. Liquidity in the economy
    B. Prices of essential commodities
    C. Inflation
    D. Borrowing power of banks
    E. All of above


Answer: Option E

4. Currency swap is an instrument to manage _________


    A. Currency risk
    B. Currency & interest rate risk
    C. Cash flows in different currency
    D. Interest rate risk
    E. All of above


Answer: Option C

5. BASEL – III will be implemented from _____.


    A. 2012
    B. 2013
    C. 2014
    D. 2015
    E. None of these


Answer: Option C

6. Which of the following in not included in M2?


    A. Currency and coins
    B. Corporate bonds held by firms and individuals
    C. Demand deposits
    D. Money market mutual fund shares
    E. none of these


Answer: Option B

7. Contractual savings institutions include ______


    A. Commercial banks & thrifts
    B. Finance companies and mutual funds
    C. Life insurance companies and pension funds
    D. All of above
    E. None of these


Answer: Option C

8. In which year did the United Nations General Assembly adopted the World Environment Day?


    A. 1970
    B. 1972
    C. 1981
    D. 1985
    E. None of these


Answer: Option B

9. Foreign bank means a bank ___________

(A) That has been incorporated outside India
(B) That has its 51% or more branches outside India
(C) Whose more than 51% equity capital is owned by foreigner.


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


Answer: Option A

10. RRB’s were established on the recommendations of _________.


    A. Narsimham committee
    B. N. L. Dantwala committee
    C. B.Shivraman Committee
    D. S. M. Kelkar committee
    E. none of these


Answer: Option A

1. Contribution of Central Government, State Government and Sponsored Bank in paid up capital of a Regional Rural Banks is in the ratio of ________


    A. 50: 15: 35
    B. 60: 25: 15
    C. 60: 20: 20
    D. 50: 25: 25
    E. None of these


Answer: Option A

2. Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?


    A. Cash Credit Ratio
    B. Debt Service Obligation
    C. Liquidity Adjustment Facility
    D. Statutory Liquidity Ratio
    E. None of these


Answer: Option D

3. In the opinion of the Governor of Reserve Bank of India, which one of the following is the reason owing to which India’s inflation is accelerating ?


    A. Excess liquidity in market.
    B. Speculation in essential goods
    C. Higher Food cost
    D. Commodities Futures
    E. None of these


Answer: Option A

4. The tagline of Indian Overseas Bank is


    A. Good people to grow with
    B. Good people to banks with
    C. Pure banking
    D. Only Banking nothing else
    E. None of these


Answer: Option B

5. The organisation is responsible for calculating National Income is


    A. CSO
    B. NSSO
    C. RBI
    D. SBI
    E. None of these


Answer: Option A

6. RBI was Nationalized on


    A. 1 April 1949
    B. 1st Jan 1949
    C. 1st September 1949
    D. 1 December 1949
    E. None of these


Answer: Option B

7. The minimum limit with RTGS is _________


    A. 2 lakh
    B. 3 lakh
    C. 4 lakh
    D. 6 lakh
    E. None of these


Answer: Option A

8. The idea of Lokpal has emanated from the office of Ombudsman, which is prevalant in ______ countries ?


    A. Latin American
    B. South East Asian
    C. Scandinavian
    D. European
    E. African


Answer: Option C

9. The tax on Import and Export is known as


    A. Income Tax
    B. Trade Tax
    C. Custom duty
    D. Commercial Tax
    E. None of these


Answer: Option C

10. The National Rural Livelihood Mission (NRLM) was launched recently. Which of the following statement is/are correct regarding NRLM ?

(A) NRLM seeks to bring the rural poor under the self help group (SHG) network.
(B) Services of Business correspondent
(C) NRLM will facilitate access of bank credit to those covered under the mission


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


Answer: Option D

1. The rate of interest on term deposits in banks is stipulated by which of the following ?


    A. RBI
    B. Government of India
    C. Indian Banks Association
    D. Banking codes and standards board of India
    E. Bank Itself


Answer: Option E

2. Chief of RBI is known as ———-


    A. President
    B. Chairman
    C. Managing director
    D. Director
    E. None of these


Answer: Option E

3. In order to streamline the functioning of MFI sector the RBI has appointed a committee. The committee was headed by ————


    A. Dr. Y.V. Reddy
    B. Shri M.V. Nair
    C. Sri Y.H. Malegam
    D. Dr. D. Subbarao
    E. None of these


Answer: Option C

4. Which of the following is/are the depositories in India handling dematerialized shares ?

(A) National payment corporation of India
(B) Central depository services limited
(C) Bombay stock exchange (BSE)


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


Answer: Option A

5. What is the total number of stock exchanges in India ?


    A. 21
    B. 22
    C. 23
    D. 24
    E. None of these


Answer: Option C

6. Resident foreign currency account can open only for———


    A. Scheduled commercial banks
    B. Public sector banks
    C. Private sector Banks
    D. Regional Rural banks
    E. None of these


Answer: Option A

7. First bank operated by Indians on limited liability basis was ————-


    A. Punjab National Bank
    B. Oudh Commercial Bank
    C. Allahabad Bank
    D. Imperial Bank of India
    E. None of these


Answer: Option B

8. Body which regulates micro finance is


    A. RBI
    B. Indian Banks Association
    C. NABARD
    D. SIDBI
    E. None of these


Answer: Option C

9. Govt’s Income from issuance of note is part of ———–


    A. Tax Revenue Receipts
    B. Non tax Revenue
    C. Capital Receipts
    D. Non debt capital Receipts
    E. None of these


Answer: Option E

10. The Rajiv Gandhi Action plan, put forwarded in 1988 is related to which among the following?


    A. Environmental Protection
    B. Nuclear Disarmament
    C. Information Technology
    D. Multilateral Trade
    E. None of these


Answer: Option B