Apr 12, 2016

Banking Knowledge - Latest Banking Awareness

Banking Knowledge - Latest Banking Awareness

Mock Test on Banking Awareness

1. Banks are considered as ‘financial intennediaries‘. Which of the following activity correctly and comprehensively explains this role of banks?
(1) Accepting deposits of money for the purpose of lending and investment
(2) Granting loans to the weaker sections of the society
(3) Accepting money for remittance and issuing bank drafts
(4) Providing safe deposit services
(5) Opening accounts and accepting deposits therein

2. The rate below which banks cannot generally lend is called as ____________
(1) Base rate
(2) Floor rate
(3) Repo rate
(4) Call money rate
(5) Ceiling rate

3. Which of the following is not a type of Cheque?
(1) Crossed cheque
(2) Blank cheque
(3) Speed cheque
(4) Bearer cheque
(5) Order cheque

4. In relation to banking, what do you understand by “ Ever—Greening of Loan Account" ?
(1) Full repayment of a loan account before maturity - Pre-payment
(2) Full repayment of a loan account exactly at maturity
(3) Fresh Loan sanctioned during the tenure of account for enhancement of limits
(4) Adjusting the NPA / Sticky account with fresh sanction of loans
(5) Loans provided for new projects to new customers

5. With a view to facilitate payment of balance in 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 in bank accounts in our country.
(1) Will
(2) Registration
(3) Nomination
(4) Indemnity
(5) Guarantee



6. Which of the following states became the first state in the country to launch RBI‘s e-payment system for commercial tax payers?
(1) Andhra Pradesh
(2) Kerala
(3) Gujarat
(4) Maharashtra
(5) Kamataka

7. Mortgage is a –--------------
(1) security on movable property for a loan given by a bank.
(2) security on immovable property for a loan given by a bank.
(3) concession on immovable property for a loan given by a bank.
(4) facility on immovable property for a loan given by a bank.
(5) security on immovable property for a deposit received by a bank.

Banking Knowledge - Banking Awareness Question
Banking Knowledge - Banking Awareness Questions
Banking Knowledge - Banking Awareness Questions Answers
Banking Knowledge - IBPS Banking Awareness Questions

8. Which of the following types on accounts are known as “Demat Accounts” ?
(1) Accounts which are Zero Balance Accounts
(2) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
(3) Accounts in which shares of various companies are traded in electronic form
(4) Accounts which are operate through internet banking facility
(5) None of these

9. Like telephone/Mobile number portability, the Ministry of Finance/ RBI is now also considering to provide bank account number portability to bank customers. Which of the following would it mean?
(1) Any customer/ account holder can withdraw cash from any other Bank through his / her own cheques drawn from other bank even without ATM.
(2) Any borrower can draw funds from his/ her loan account from any other bank also
(3) The account number of any account holder will remain the same even if he/she is getting his/her account transferred to another bank also.
(4) Bank customers would have the facility of mobile Banks to withdraw cash nearby his / her place
(5) None of these

10. NRE deposit is _________________
(1) Non Resident External deposit
(2) Non Resident Extra deposit
(3) Non Resident Exchange deposit
(4) Non Refundable External deposit
(5) Non Resident Extended deposit

11. What is offshore banking?
(1) It is a bank located in the sea (i.e. island)
(2) It is a bank located in SEZ
(3) it is a bank located in a neighbouring country
(4) It is a bank located outside the country of residence of the depositor
(5) Offshore banking is basically dealing in foreign exchange

12. Interest on saying bank account is now calculated by banks on
(1) minimum balance during the month
(2) minimum balance from 7th to last day of the month
(3) minimum balance from 10th to last day of the month
(4) maximum balance during the month
(5) daily product basis

13. A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as -----------------------
(1) investment banking
(2) core banking
(3) mobile banking
(4) national banking
(5) specialized banking

14. Which of the following is not considered a money market instrument?
(1) Treasury bills
(2) Repurchase Agreement
(3) Commercial Paper
(4) Certificate of Deposit
(5) Shares and bonds

15. Which of the following is not part of the scheduled banking structure in India?
(1) State Co-operative Banks
(2) Public Sector Banks
(3) Private Sector Banks
(4) Regional Rural Banks
(5) Money Lenders

16. Which of the following terms is used in the field of finance and banking?
(1) Gauge Pressure
(2) Quantum number
(3) Adjustment Credit
(4) Absolute zero
(5) Single bond

17. Normally Banks accept Fixed Deposits for a maximum period of ____________
(1) 5 years
(2) 3 years
(3) 7 years
(4) 20 years
(5) 10 years

18. IFRS stands for ___________________
(1) International Financial Reporting standards
(2) Indian Financial Rating Standards
(3) International Financial Rating Standards
(4) Indian Functional Reporting Standards
(5) None of these

19. KYC guidelines followed by the Banks have been framed on the recommendations of the _______
(1) Ministry of Home Affairs
(2) Ministry of Rural Development
(3) Indian Banks Association
(4) Financial Intelligence Unit
(5) Reserve Bank of India

20. Bridge loans refer to _______________
(1) Loans granted to construction companies for construction of bridges
(2) Loan granted to PWD for construction of bridges over Rivers
(3) Interim finance allowed by banks to their customers pending disbursement of term loans by financial institutions
(4) Loan granted to Railway for construction of bridges
(5) None of these

21. The RBI has asked banks to spell out their policy, procedures and size of the business on which of the following aspects of banking?
(1) On-shore banking
(2) Off-shore banking
(3) Investments in secondary market
(4) Wealth management
(5) None of these

22. On which one of the following issues can SEBI penalize any company in India?
(A) Violation of Banking Regulation Act.
(B) Violation of foreign portfolio investment guidelines.
(C) For violation of Negotiable Instrument Act.
(1) Only (A)
(2) All (A), (B) & (C)
(3) Only (A) & (B)
(4) Only (B) & (C)
(5) Only (B)

23. 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?
(1) Excess liquidity in market
(2) Speculation in essential goods
(3) Higher food cost
(4) Commodities futures
(5) None of these


24. In opinion of the RBI, which one of the following is / are a threat to the smooth functioning of Indian Companies?
(A) Rising input costs
(B) High interest rates.
(C) Inflation only.
(1) Only (A)
(2) Only (B)
(3) Only (A) & (B)
(4) Only (C)
(5) All (A), (B) & (C)

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

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