Banking Knowledge Practice Questions

1. Where is the head office of Syndicate Bank located?
a) Bangalore
b) Manipal
c) New Delhi
d) Mumbai
e) Kolkata

2. NABARD support lending to farmers, rural artisans and other non farmers in rural areas through ......
a) Co-operative Banks
b) Regional Rural Banks
c) Land Development Banks
d) Scheduled Commercial Banks
e) All the Above

3. Identify the macro economic policy/ policies of India .......
a) Monetary policy
b) Fiscal policy
c) Regulatory policy
d) Only a and b
e) None of these

4. RBI uses bank rate in order to control .......
a) Money supply, volume of bank credit and cost of bank credit.
b) Liquidity
c) Cash holdings of banks
d) Financial position of banks
e) None of these

5. What are the steps taken by RBI, in order to meet demand and time liabilities of banks in time?
a) Banks are asked to keep mandatory regulatory cash reserve with RBI
b) Banks are asked to maintain CRR
c) Both a and b as they are same
d) Banks are asked to keep enough cash in cash counters
e) None of these

6. India's own payment gate way 'RuPay' works in which of the following channel/s?
a) Automated Teller Machines
b) Point of Sales
c) Online Sales
d) All of the Above
e) None of these

7. Monetary policy is used by RBI for controlling.......
a) Inflation or deflation
b) Exports or imports
c) Indian rupee or foreign currency
d) State or Central Government
e) None of these

8. Identify the difference between commercial paper and certificate of deposit ........
a) Certificate of deposit is issued at discount while commercial paper at face value
b) Certificate of deposit is a financial instrument while commercial paper is a financial statement
c) Certificate of deposit is issued by banks while commercial paper is issued by firms or public limited companies
d) All the above
e) None of these

9. When does money market is called as 'Tight'?
a) When the call money rate is low
b) When the call money rate is high
c) When money availability in the market is very high
d) When participants in the money market are ready to lend
e) None of these

10. If a bank needs to attract Provident Fund Deposits, what are the criteria that banks must possess?
a) Profitability in preceding 3 years
b) Minimum of Rs.200 crores as net worth
c) Capital adequacy of 9%
d) All the above
e) None of these

11. If the stock markets are declining then it is called as .......
a) Bull run
b) Down run
c) Bear run
d) Stage
e) None of these

12. A promissory note that is not secured by any collateral or not secured by a mortgage or lien marked on any property is ....... instrument.
a) Debenture
b) Bill of exchange
c) Commercial bill
d) Currency bill
e) None of these

13. What does RBI do if a Re.1 note is issued by Government of India?
a) RBI abject the issuance
b) RBI put into circulation
c) RBI converts Re.1 in to higher denomination of Rs.10 and more.
d) RBI asks banks to not to support for circulation
e) None of these

14. RBI issue currency rupee notes on bases of ........
a) By holding minimum value of gold coins and bullion
b) By holding minimum foreign securities as a part of the total approved assets
c) By holding minimum amount of commodities which are trading in commodity exchanges
d) Only a and b
e) All the above

15. Which of the following entities are applicable for the new listing obligations and disclosure requirements of SEBI regulations, 2014?
a) Listing of debentures
b) Listing of bonds
c) All listed companies
d) All the above
e) None of these

16. National Payments Corporation of India (NPCI) is being used by banks for ......
a) Remittance
b) Clearing and settlement
c) Payments and settlements
d) Advisory service
e) None of these

17. NOSTRO account means .......
a) An account opened by foreign citizens other than NRIs in India with Indian banks in INR for their expenses in India.
b) An account opened by foreign citizens other than NRIs in India with foreign banks in foreign currency to convert Indian rupee to that currency and remit back to their own country.
c) An account opened by an Indian bank in the foreign countries in their banks and in that country currency for settlement in that country's currency.
d) An account opened by a foreign bank in India with their corresponding banks in INR for settlements in INR.
e) None of these

18. What kind of Treasury Bills (T-Bills) is/ are issued by State Government?
a) No Treasury Bills issued by State Government
b) 182 - days
c) 91 - days
d) 364 - days
e) None of these

19. Pick the odd one out from the following about Bharat Bill Payment System (BBPS).
a) BBPS is a unified bill payment system across the country.
b) It will be setting up the standards in operations related to payments, clearance, and settlements.
c) G. Padmanabhan committee had provided a report on feasibility of Bharat Bill Payment System (BBPS).
d) Payment gateways, service providers, banks, and agents will be participants in this system.
e) None of these

20. Electronic fund transfers like RTGS and NEFT are operated and maintained by ......
a) National Payments Corporation of India (NPCI)
b) Bharat Bill Payment System (BBPS)
c) Reserve Bank of India (RBI)
d) Clearing Corporation of India Limited (CCIL)
e) None of these

21. Identify the Basel III norms from following that, recently RBI has extended the timeline for implementation for banks in India ........
a) Minimum regulatory capital requirement
b) Market discipline
c) Holding the minimum capital to risk weighted assets ratio to 10.25%
d) Leverage ratio to 3%
e) All the above

22. Identify the odd one out from the following benefits of RTGS.
a) Settlement is immediate
b) Suited for only lower value transactions
c) Lowers the settlement risk
d) Avoids credit risk while settlement
e) Settled at real time

23. Who all can hire a locker in a bank?
a) Individuals
b) Limited companies and societies
c) Specified associations
d) Two persons jointly
e) All the above

24. Expand IFSC ........
a) Indian Financial System Code
b) Indian Financial Services Code
c) International Financial Service Code
d) Interbank Fund Service Code
e) Indian Financial Security Code

25. Which among the following is known as pre paid negotiable instrument?
a) Cheque
b) Promissory note
c) Bankers cheque/ Pay order
d) Fixed deposit
e) None of these

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