Apr 14, 2016

Banking Knowledge Question Related to Banking Awareness

Banking Knowledge Question Related to Banking Awareness

Questions Related to Banking Awareness for Bank, IBPS Examination


1. Which of the following is not a Negotiable Instrument?
(1) Cheque
(2) Fixed Deposit Receipt
(3) Promissory Note
(4) Bill of Exchange
(5) All (1) to (4) above are negotiable instruments

2. What is the maximum balance amount that is eligible for earning interest in a normal savings bank account?
(1) Rs 1 lac
(2) Rs 2 lacs
(3) Rs 3 lacs
(4) Rs 5 lacs
(5) No limit

3. When a customer opens a Deposit account with the Bank, which one of the following is the status of the Bank?
(1) Debtor
(2) Creditor
(3) Trustee
(4) Beneficiary
(5) None of these

4. Banking Ombudsman Scheme is applicable to the business of
(1) All scheduled commercial banks excluding RRBs
(2) All scheduled commercial
(3) banks including RRBs
(4) Only Public Sector Banks
(5) All Banking Companies

5. All scheduled banks except private banks which of the following functions are not being performed by the Reserve Bank of India?
(1) Regulation of Banks in India
(2) Regulation of Foreign Direct Investment in India
(3) Foreign Currency Management in India
(4) Control and Supervision of Money Supply
(5) Currency Management in India


6. A bank is called as ‘Scheduled Bank’ when -----------------------
(1) Its business has crossed Rs 1000 crore mark
(2) Its branch network is over 100
(3) It is included in the second Schedule of the RBI Act
(4) When it complies with all the three above
(5) None of these

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7. Upper limit prescribed for RTGS transaction is -----------------------------
(1) Rs 1 lac
(2) Rs 2 lacs
(3) Rs 5 lacs
(4) Rs 50 lacs
(5) No upper limit is prescribed

8. Distribution of insurance products and insurance policies by banks as corporate agents is known as ------------------------
(1) General Insurance
(2) Non-life insurance
(3) Bancassurance
(4) Insurance banking
(5) Deposit insurance

9. What does the letter ‘L’ denote in term ‘LAP’ as referred every now and then in relation to monetary policy of the RBI ?
(1) Liquidity
(2) Liability
(3) Leveraged
(4) Longitudinal
(5) Linear

10. What is the full form of ‘FINO‘a term we see frequently in financial newspapers?
(1) Financial Investment Network and Operations
(2) Farmers‘ Investment in National Organisation
(3) Farmers Inclusion News and Operations
(4) Financial Inclusion Network and Operations
(5) None of these

11. When the rate of inflation increases -------------------------
(1) purchasing power of money increases
(2) purchasing power of money decreases
(3) value of money increases
(4) purchasing power of money remains unaffected
(5) amount of money in circulation decreases

12. Which of the following is the main advantage of “ASBA” with the applicants for share allotment?
(1) ASBA applicant has got secured allotment of shares
(2) ASBA applicant has got certain preference in allotment of shares as compared to general applicants
(3) ASBA applicant need not remit the fund for allotment of shares, he/ she will do so after shares are allotted to him/ her
(4) ASBA Applicants deposit/ OD account is not debited, only the funds are blocked for the same and he/ she continues to avail interest till the shares are allotted to him/ her
(5) None of these

13. Which of the following is NOT a function of the Reserve Bank of India’?
(1) Fiscal Policy Functions
(2) Exchange Control Functions
(3) Issuance, Exchange and destruction of currency notes
(4) Monetary Authority Functions
(5) Supervisory and Control Functions

14. With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced for bank accounts in our country ---------------------
(1) Will
(2) Registration
(3) Nomination
(4) Indemnity
(5) Guarantee

15. Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of ------------------------
(1) Minors
(2) Married women
(3) Senior citizens
(4) Govt. employees
(5) Rural residents

16. In the term STRIPS, the first letter ‘S’ denotes?
(1) Single
(2) Small
(3) Special
(4) Savings
(5) Separate

17. When the loan is granted for purchase of white goods it is called
(1) Consumption loan
(2) White goods loan
(3) Consumer durable loan
(4) Business loan
(5) Proprietary loan

18. Expand the term FRBM ------------------------------
(1) Financial Responsibility and Business Management
(2) Fiscal Responsibility and Business Management
(3) Financial Responsibility and Budget Management
(4) Fiscal Responsibility and Budget Management
(5) Formal Responsibility and Business Management

19. Which of the following terms is used in the field of Banking?
(1) MRI
(2) Refraction
(3) Depository Receipt
(4) Neutralization
(5) Atomic Number

20. Who amongst the following has asked banks to adopt ‘six step‘ approach to prevent diversion of funds by the companies ?
(1) Company Registrar
(2) SEBI
(3) RBI
(4) AMFI
(5) All of these

21. Through which one of the following sources domestic funds are raised by Companies ?
(A) IPO only
(B) FPO only
(C) Commercial papers
(1) Only (C)
(2) All (A), (B) & (C)
(3) Only (A) & (C)
(4) Only (A)
(5) Only (A) & (B)

22. Which one of the following was the reason owing to which Government wants Reserve Bank of India to tighten prudential norms for NBFCs?
(1) To reduce liquidity in the market
(2) It is as per Basel II requirements
(3) It is as per Bank for International Settlement (BIS) directives
(4) It is to protect NBFCs from any impact of possible economic slowdown
(5) None of these

23. Expand the term ALM as used in Banking Finance sector ?
(1) Asset Liability Mismatch
(2) Asset Liability Maturity
(3) Asset Liability Management
(4) Asset Liability Manpower
(5) None of these

24. What are teaser loan rates charged by banks?
(1) Fixed rate of interest charged by banks
(2) Floating rate of interest charged by banks
(3) Rate of interest in the initial period is less and goes up subsequently
(4) Rate of interest in the initial period is more and it goes down subsequently
(5) None of these

Questions Answers
1 5
2 5
3 1
4 1
5 2
6 3
7 2
8 3
9 1
10 5
11 2
12 4
13 1
14 3
15 3
16 5
17 1
18 3
19 3
20 3
21 2
22 4
23 3
24 3

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