Monday 18 August 2014

BANKING AWARENESS PRACTICE MCQs FOR BANK EXAMS

1. Which of the following does not find mention in the Negotiable Instruments Act?
a) General Crossing
b) Special Crossing
c) Not Negotiable Crossing
d) Double crossing
e) Account Payee Crossing

2. A cheque is drawn in favour of Amol or order. It is endorsed by Amol in favour of Vasant. Vasant will be called -
a) Endorser
b) Drawer
c) Endorsee
d) Drawee
e) None

3. What is the purpose of reduction in Cash Reserve Ratio (CRR)?
a) Reduce Credit Flow
b) Enhance Credit Flow
c) Enhance availability of cash
d) Reduce Cash transactions
e) None

4. Which of the following is the basic function of Banks?
a) Merchant Banking Business
b) Issuing Demand Drafts
c) Issuing Mail Transfers
d) Accepting Deposits and giving loans
e) Paying LIC Premium on behalf of customers

5. DTC stands for?
a) Direct Tax Code
b) Direct Transaction code
c) Direct Transfer Code
d) Direct Trade
e) None of the above

6. For UCBs, the ceiling on loans to individuals for carrying out repairs / additions / alterations to their dwelling units has been enhanced to Rs.––lakh in rural and semiurban areas and Rs. –– lakh in urban areas.
a) 1; 5
b) 2; 5
c) 5; 5
d) 5; 10
e) None of the above

7. The RTGS System is operated by the RBI and managed by a Standing committee consisting of members from?
a) RBI
b) Bank
c) Other Stake holders
d) All the above
e) None of these

8 RBI has decided to permit banks to undertake Insurance broking business subject to the stipulated conditions. Which of the following is not the stipulated condition?
a) Net worth of the bank should not be less than Rs. 500 crores.
b) The CRAR of the bank should not be less than 10%.
c) The level of net non-performing assets should not be more than 3%.
d) The bank should have made profits for the last 3 consecutive years.
e) None of the above

9. Where is the headquarters of International Monetary Fund?
a) Geneva
b) Paris
c) London
d) Manila
e) Washington

10. The Financial Results of the banks and other organisations normally are expressed
in quarters. What does Q-I mean?
a) Results of January-March
b) Performance during April-june
c) The period when the profits are highest
d) Period where the turnover is more
e) The period when the profits are highest

11. Which of the following certainly is an effort in the direction of Financial Inclusion?
a) Internet Banking
b) Anywhere Banking
c) No-frills Account
d) Foreign Currency Accounts
e) None of the above

12. What does the letter P denote in the term PAN which is issued by the Income Tax
Department?
a) Provisional
b) Private
c) Personal
d) Permanent
e) Postal

13. Who is the chairman of Gover-ning Council of BCSBI (Banking Codes and
Standards Board of India)?
a) K.C.Chakrabarty
b) A.C.Mahajan
c) HS Khurana
d) M.V.Nair
e) Salman Khurshid

14. As we know, a lot of new concepts are being used in the field of banking these days,
which of the following is NOT one such concept/product directly associated with banks?
a) Gift Cards
b) SMS Alert
c) Demat Account
d) ATM/Debit Card
e) Bank to Bank Number portability

15. The Headquarters of Bank for International Settlements is located at?
a) New York
b) London
c) Washington
d) Paris
e) Basel (Switzerland)

16. M3 is the sum total of?
I) Currency with public
II) Demand deposits with banks
III) Time Deposits with banks
IV) Deposits with Post office savings bank
a) I + II + III
b) I + II
c) I + II + III + IV
d) Only I
e) None of the above

17. Who is the regulator of payment and settlement system in India?
a) SEBI
b) IRDA
c) RBI
d) Central Government
e) State Bank of India

18. As per RBI guidelines which of the following is/are correct in respect of classification criteria for opening Bank Branches?
a) Rural: population less than 10,000
b) Semi-Urban:10,000 and above and less than 1 lakh
c) Urban: 1 lakh and above and less than 10 lakh
d) Metropolitan: 10 lakh and above
e) All the above

19. RTGS has been implemented to eliminate –––– risk?
a) Credit risk
b) Operational risk
c) Settlement risk
d) Systemic risk
e) c+d

20. Cash kept in the currency chest is owned by?
a) Currency Chest branch bank
b) State Bank of India
c) Central Government
d) Reserve Bank of India
e) None of the above

21. In the Abbreviation FRBM Act, the letter F stands for?
a) Finance
b) Fiscal
c) First
d) Financial
e) None of the above

22. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant

23. The Main activity of the Financial Intelligence Unit India (FIU-IND) is to control?
a) Corruption
b) Tax Evasion
c) Money Laundering
d) Terrorism
e) None of the above

24. Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in?
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of these

25. TCF is the term used by Dr K. C. Chakrabarty, the Deputy Governor of RBI in the
meeting of BCSBI. TCF stands for?
a) Treating Customers Fairly
b) Treating Customers Fast
c) Treatment of Credit-customers Fast
d) Only a and b
e) All the above

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

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