Apr 12, 2016

Banking Knowledge - Objective Questions on Banking Awareness

Banking Knowledge - Objective Questions on Banking Awareness

Objective Banking Knowledge Questions Answers


1. Which of the following organization / agencies is specifically set up to boost overall rural development in India?
(1) RBI
(2) SIDBI
(3) NABARD
(4) SEBI
(5) EXIM

2. Banks in India are regulated under --—-——
(1) Companies Act, 1956
(2) Banking Regulation Act, 1949
(3) Reserve Bank of India Act, 1934
(4) Special powers conferred on the RBI
(5) None of these

3. A Savings Bank Account opened with a commercial bank with zero balance or very minimal balance is known as
(1) Savings Bank-Ordinary Account
(2) Student Savings Bank Account
(3) No Frill Account
(4) Current Account
(5) Call Deposit

4. What does the letter ‘R’ denote in the abbreviation ‘BR Act‘ which controls banking activities in the country ?
(1) Reformation
(2) Regulation
(3) Reporting
(4) Resolution
(5) Ranking

5. ‘Base Rate’ in banks is
(1) Rate of interest payable on demand deposits
(2) Rate of interest payable on fixed deposits
(3) Rate of interest charged by RBI on long term borrowings of Public Sector Banks
(4) Minimum lending rate decided by RBI which shall be adopted by all Public Sector Banks
(5) The minimum interest rate fixed by individual banks, below which they cannot lend funds, except cases like Government sponsored scheme


6. Banking Sector will fall under which of the following ?
(1) Agricultural Sector
(2) Service Sector
(3) Manufacturing Sector
(4) Industrial Sector
(5) Small Scale Sector

7. A Saving Bank Deposit Account is one where ---------------------------
(1) The deposits are made only once in a year
(2) Amounts are deposited and are withdrawn as per requirement of the customers
(3) Periodical Fixed amount are deposited month wise and withdrawal are allowed after a fixed period
(4) The deposits are made once in every month
(5) None of these

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8. ASBA scheme is related to Purchase of -----------------
(1) IPO
(2) CP
(3) CD
(4) TCs
(5) None of these

9. Mobile banking requires -------------------------
(1) account with a bank with mobile phone linked to interbank mobile payment service
(2) account with mobile post office
(3) account with bank along with mobile phone linked to international mobile payment service
(4) account with bank and mobile phone linked to interstate mobile payment service
(5) account with bank along with mobile phone linked to inter district mobile payment service

10. In a bank the following are the usual types of deposit accounts
(1) Savings accounts, electricity accounts and insurance premium accounts
(2) Fixed deposits, Post office savings bank accounts and current deposit accounts
(3) Current accounts, savings bank accounts and term deposit accounts
(4) Loan accounts, savings bank accounts and term deposit accounts
(5) Current bill accounts and term deposit accounts

11. When a bank dishonours a cheque -----------------
(1) it is called settlement of the cheque
(2) it is called withdrawing of the cheque
(3) it is called nullifying of the cheque
(4) it is called truncating of the cheque
(5) it is called return of the cheque unpaid

12. The most powerful tool used by the Reserve Bank of India to control inflation is ------------
(1) Raise interest rates
(2) Reduce interest rates
(3) Raise Currency Supply
(4) Reduce Currency Supply
(5) Raise interest rates and reduce currency supply

13. ‘Sub Prime bending‘ which was the root cause for global meltdown in banks during 2008 means -----------------
(1) Bank finance for non-productive activities
(2) Bank finance not properly disclosed in its Balance Sheet
(3) Bank finance in violation to the directives of the Central Bank
(4) Bank finance to fictitious entities
(5) Bank finance who do not qualify for the best market interest rates

14. Crossing of cheques makes them -----------------------
(1) Invalid document
(2) Ineligible to endorse to a person other than the payee
(3) Remain the same in all respect, it is only a practice
(4) Eligible for payment irrespective of sufficient balance in the account
(5) Ineligible to get cash across the bank counter

15. NEFT and RTGS in banking terminology speaks of ------------------
(1) Various deposit products
(2) Various loan products
(3) Electronic Payment Products within a bank
(4) Electronic Fund Transfer from bank to bank
(5) Cheque Truncation Process

16. The ownership of Public sector banks rests
(1) Wholly with Government of India
(2) Jointly with Government of India and State Bank of India
(3) Wholly with shareholders from the public
(4) Jointly with Government of India and Reserve Bank of India
(5) Jointly with Government of India and shareholders from the public

17. Non-performing assets mean ------------------
(1) the assets have stopped giving losses to a bank
(2) the assets have stopped giving capital to a bank
(3) the assets have stopped giving income to a bank
(4) the assets have stopped giving income and expenses to a bank
(5) the assets have stopped giving expenses to a bank

18. Which of the following banks in India has maximum number of branches and ATMs in India ?
(1) IDBI Bank
(2) Bank of India
(3) Punjab National Bank
(4) ICICI Bank
(5) State Bank of India

19. EFT means ---------
(1) Effective Funds Transfer
(2) Efficient Funds Transfer
(3) Easy Funds Transfer
(4) Electronic Funds Transfer
(5) Electric Funds Transfer

20. If a cheque is post dated
(1) bank on whom it is drawn will not honour the cheque before the date of the cheque
(2) bank on whom it is drawn has to honour the cheque before the date of the cheque
(3) bank on whom it is drawn has the option to honour the cheque before the date of the cheque or not
(4) bank on whom it is drawn has to refer to RBI to honour the cheque before the date of the cheque
(5) bank on whom it is drawn has to refer to the court to honour the cheque before the date of the cheque


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