BANKING AWARENESS PRACTICE MCQs FOR IBPS CLERKS EXAM

1. Banks in our country normally publicize that additional interest rate is allowed on retail domestic term deposits of ____
a) Minors
b) Married Women
c) Senior citizens
d) Government Employees
e) Rural residents

2. When the rate of inflation increases ___
a) Purchasing power of money increases
b) Purchasing power of money decreases
c) Value of money increases
d) Purchasing power of money remains unaffected
e) Amount of money in circulation decreases

3. Acentralized 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 ___
a) Investment Banking
b) Core Banking
c) Mobile Banking
d) National Banking
e) Specialized Banking

4. Which of the following is NOT considered a money market instrument?
a) Treasury Bills
b) Repurchase Agreement
c) Commercial Paper
d) Certificate of Deposit
e) Shares and Bonds

5. Which of the following is necessary while opening deposit accounts in banks?
a) Will
b) Registration
c) Nomination
d) Indemnity
e) Guarantee

6. Which of the following is not a banking term?
a. Letter of credit
b. MIBOR
c. Factoring services
d. Entry load
e. None of these

7. Which of the following organizations issue the rules of global trade?
a) IMF
b) World Trade Organization
c) Foreign trade
d) G-20
e) None

8. One single statement that depicts the financial position of a Bank and / or Business enterprise at a given point of time is called:
a) Statement of product details
b) Foreign exchange
c) Balance Sheet
d) Balance of payment
e) Trading and Manufacturing account

9. The Reverse Mortgage scheme is launched to give benefit to which of the following groups of society?
a) Persons below 60 yrs
b) Senior Citizens
c) Unemployed youth
d) Orphans
e) All the above

10. One of the major challenges banking industry is facing these days is curbing deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following act is passed to prevent this activity?
a) Payment & Settlements Act
b) Control Money Supply Act
c) Narcotics and Psychotropic Substance Act
d) Prevention of Money Laundering Act
e) None

11. Which of the following scheme is not meant for investment purposes?
a) National Saving Certificate
b) Infrastructure Bonds
c) Mutual Funds
d) Letter of Credit
e) None of these

12. Basel Norms which are important regulatory stipulations are meant for which sector?
a) Insurance
b) Banking
c) Micro finance
d) Pension funds
e) None

13. Systematic Investment Plans relates to:
a) Mutual Funds
b) Life Insurance Companies
c) Commercial Banks
d) Post office savings schemes
e) None

14. Euro is the official currency of ___?
a) NATO
b. United Nations
c) European Union
d) Germany and England
e) None of these

15. Which of the following is an example of cash less purchase?
a) Debit card
b) Credit card
c) ATM withdrawal
d) All of the above
e) None

16. Whose signature appears on Indian Rs. 100 note?
a) Finance Minister
b) RBI Governor
c) Finance Secretary
d) Chairman, Planning Commission
e) None

17. While discussing investments there is a mention of short term government security.
What is this investment?
a) Debenture
b) Mutual funds
c) Treasury bill
d) Share
e) None of these

18. NBFCs are an important part of the Indian financial system. What is meant by this term?
a) New Banking Financial Companies
b) Non Banking Financial Companies
c) Neo Banking Financial Confederation
d) Non banking Fiscal Companies
e) None of these

19. Bank loan against property requires the asset to be free from encumbrances. What
does it mean?
a) The asset to be free from any liability
b) The asset to be properly registered
c) The property to be fully constructed
d) The asset should not have multiple owners
e) None

20. RBI stipulates a healthy mix of CASA in the business figures of banks. What is CASA?
a) Customer Analysis and Savings Pattern
b) Cost Appreciation and selling Analysis
c) Current Account and saving Account
d) Credit and savings Aggregate
e) None of these

21. Which one of the following is not an electronic banking delivery channel?
a) Mobile Vans
b) Mobile Phone Banking
c) Internet Banking
d) Tele Banking
e) ATM

22. The Rate at which the domestic currency can be converted into foreign currency and
vice-versa is known as the ____
a) Exchange rate
b) MIBOR
c) Inter bank Call money rate
d) Base rate
e) LIBOR

23. Now a days, banks are selling third party products. An example of third party product is:
a) Mutual funds
b) Term deposits
c) Credit cards
d) All of these
e) None

24. Electronic Clearing Service in banks can be availed only by:
a) Individuals
b) Corporates
c) Senior Citizens
d) All of these
e) None

25. What is the full form of CRR as used in banking sector?
a) Crucial Reserve Rate
b) Cash Reserve Ratio
c) Current Reserve Ratio
d) Core Current Ratio
e) None.

26. What is the full form of LAF as used in the banking world very frequently ?
a) Liquid Advances Finance
b) Liquidity Adjustment Facility
c) Legal Adjournment Formality
d) Local Advance Finance
e) Late Arrival of Finance

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

29. Many Regional Rural Banks are given licence to open branches in small cities and towns. These licences are given by:
a) Cabinet Committee on Economic Affairs
b) Reserve Bank of India
c) NABARD
d) Indian Banks Association
e) None of these

30. Which of the following organisations/agencies is not associated with the world of
Banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) SPCA

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

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