Sunday 10 August 2014

BANKING AWARENESS PRACTICE MCQs FOR BANK EXAMS

1. The basic functions of the bank are?
a) Acceptance of Deposits from the public.
b) Lending or investing the funds so collected from the customers.
c) Lending to customers
d) (a) + (b)
e) (a) + (c)

2. Functions of Banks are governed by?
a) Indian Contract Act
b) FEMA
c) Traditions in India
d) Banking Regulation Act
e) Indian Trust Act

3. Electronic banking has opened new banking channels like?
a) Internet banking
b) Telephone banking
c) Branch Banking
d) ATM banking
e) (a)+(b)+(d)

4. Illiterate Persons are allowed to open?
a) Current account
b) Savings account
c) only savings account (without cheque facility) or fixed deposit account
d) Any type of account
e) Not allowed to open bank account

5. The effect of a valid nomination is that?
a) on death of the sole depositor /all depositors, the amount will be returned to the nominee after further legal formality.
b) on death of the sole depositor, the amount will be returned to the nominee
c) on death of the sole depositor / all depositors, the amount will be returned to the nominee without any further legal formality.
d) None
e) (a) + (b) + (c)

6. Fixed deposits cannot be
a) Renewed for a further period on maturity date
b) Transferred to third parties
c) Pre-paid before the maturity date
d) Only a&c
e) Any of the above

7. Minimum period of fixed deposit is ---- days and maximum period for which a bank can accept a deposit presently is ---- years?
a) 10 - 10
b) 7 -10
c) 7-20
d) Any period
e) 1 - 10

8. Flexi deposits means?
a) Floating Rate of Interest deposits
b) Fixed deposits
c) Hybrid deposits
d) Call Deposit
e) None of these

9. When the bank lends money to the customer, the relationship, of the customer and banker is -
a) Creditor and Debtor,
b) Debtor and Creditor
c) Principle - Agent
d) Either a or b
e) None of these

10. Debt refers to?
a) Outstanding Loan Balance
b) Present and future dues from customer of any nature say locker rent
c) a sum of money owed by one person or entity(debtor) to an-other person or entity (creditor)
d) a sum of money owed by one person or entity (Creditor) to another person or entity (Debtor) e) None

11. Know Your Customer(KYC) guidelines expect banks to?
a) know the educational details of the customer
b) know the family details of the customer
c) know the locational details of the customer
d) know the financial details of the customer
e) None

12. The Smart Card?
a) appears very smart
b) contains an IC Chip
c) issued to smart account holders
d) issued to account holders having balance in lakhs
e) None of these

13. The first Indian bank to open a branch outside India, in London in 1946 is?
a) SBI
b) PNB
c) BOB
d) Canara Bank
e) BOI

14. Coins are minted at ?
a) Mumbai
b) Hyderabad
c) Noida
d) Kolkatta
e) All of these

15. Which of the following is not a function of commercial bank?
a) Providing project finance
b) Selling mutual funds
c) Deciding policy rates like CRR, Repo rates/SLR etc.
d) Settlement of payments on behalf of the customers
e) Providing services such as locker facilities, remittances etc..

16. The New Capital Adequacy Frame work prescribed for the banks is commonly known as?
a) KYC norms
b) Credit Policy
c) Basel accord
d) Fiscal Policy
e) None of these

17. Expand the term FRBM?
a) Financial Responsibility and Business management
b) Fiscal Responsibility and Business management
c) Financial Responsibility and Budget Management
d) Fiscal Responsibility and Budget Management
e) Formal Responsibility and Business Management

18. What is an Indian Depository Receipt?
a) A deposit account with a Public Sector Bank
b) A depository account with any of depositories
c) An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
d) An instrument in the form of deposit receipt issued by Indian depositories
e) None of these

19. Land Development Banks form a part of the?
a) Commercial Banks
b) Industrial Development Bank of India
c) Food Corporation of India
d) Cooperative Credit Structure
e) None of these

20. Which of the following cannot be called as a value Added Service offered by bank?
a) Special Accounts for poor sections of society
b) Accident Insurance Cover
c) Instant credit of outstations cheques
d) free cheque books
e) All of these

21. The minimum number of women required for formation of women groups under Development of women and children in Rural Areas Programme is?
a) 20
b) 15
c) 10
d) 05
e) None of these

22. What is the full form of 'FINO', a term we see frequently in financial newspapers?
a) Financial Investment Network and Operations
b) Farmer's Investment in National Organization
c) Farmers Inclusion News and Operations
d) Financial Inclusion Network and Operations
e) None of these

23. With an aim to provide better services to the debit card holders, the Reserve Bank of
India (RBI) has directed all commercial and public sector banks to introduce new
Automated Teller Machines (ATM) that can deliver lower denomination notes such as?
a) Rs 10
b) 20
c) 50
d) None of the above
e) All the above

24. Which of the following banks is limited to the needs of agriculture and rural finance?
a) RBI
b) SBI
c) IFC
d) NABARD
e) Axis Bank

25. Open-market operations of Reserve Bank of India refer to?
a) Trading in securities
b) Auctioning
c) Transaction in gold
d) All of these
e) None of these

26. Which of the following has introduced a new tool named Data Warehousing and Business Intelligence System for speedy analysis of data and identification of violations?
a) IRDA
b) SBI
c) RBI
d) TRAI
e) None of these

27. The Reserve Bank hiked the limit for foreign investment in Asset Reconstruction Companies (ARCs) from the earlier cap of 49 per cent to?
a) 74 %
b) 47 %
c) 57 %
d) 72 %
e) None of these

28. Which of the following is NOT part of the scheduled banking structure in india?
a) Money Lenders
b) Public Sector Banks
c) Private Sector Banks
d) Regional Rural Banks
e) State Cooperative Banks

29. Who is the chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions sector?
a) Y.H. Malegam
b) Dr K.C.Chakraborty
c) C.Rangarajan
d) M.Damodaran
e) Smt Usha Thorat

30. An instrument of qualitative credit control in India is?
a) Open market operations
b) Credit rationing
c) Change in reverse ratio
d) Bank rate policy
e) None of these

ANSWERS:
1) d; 2) d; 3) e; 4) c; 5) c; 6) b; 7) b; 8) c;
9) b; 10) c; 11) d; 12) b; 13) e; 14) e; 15) c; 16)c;
17) d; 18) c; 19) d; 20) d; 21) c; 22) a; 23) e; 24)d;
25) a; 26) b; 27) a; 28) a; 29) a; 30) b

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