BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS 2016

1. What is the minimum capital requirement for New Banks in the Private Sector?
a) Rs. 200 crore
b) Rs. 300 crore
c) Rs. 500 crore
d) Rs. 600 crore
e) None of these

2. Many times we read a term "ECB" in financial newspapers. What is the full form of ECB?
a) Essential Commercial Borrowing
b) Essential Credit and Borrowing
c) External Credit and Business
d) External Commercial Borrowing
e) None of the above

3. Which among the following banks has launched "Dhanchayat" an educational film to raise awareness on the dangers of borrowing money from unorganised sources?
a) Axis 
b) ICICI
c) HDFC 
d) SBI
e) YES

4. What is the maximum monthly pension for the subscribers under Atal Pension Yojana?
a) Rs 2000 
b) Rs 3000
c) Rs 4000 
d) Rs 5000
e) None of these

5. If a company which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above

6. Which among the following has launched a Smart Humsafar Plan, a unique plan which offers multiple benefits of savings and insurance cover for husband and wife under a single policy?
a) ICICI Prudential
b) SBI Life 
c) NIACL
d) LIC 
e) HDFC ERGO

7. Which country launched world first Facial recognition ATM?
a) China 
b) Japan
c) US 
d) Canada
e) Brazil

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

9. Which among the following bank has tied up with Chinese ecommerce giant Alibaba to provide easier trade finance to small and medium enterprises (SMEs) in the country?
a) HDFC Bank
b) SBI Bank
c) Canara Bank
d) ICICI Bank 
e) Axis Bank

10. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above

11. What is the name of the platform launched by State Bank of India (SBI) that enables customers to book their foreign exchange transactions online?
a) SBI eforex
b) SBI emoney
c) SBI eonline
d) SBI eshare
e) SBI ebuddy

12. In CDR, "R" stands for ____.
a) Ratio 
b) Receipt
c) Regulation 
d) Restructuring
e) Reserve

13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) None of the above

14. The Bank for International Settlements (BIS) is the world's oldest international financial organization established on 17 May 1930. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation
in those areas and to act as a bank for central banks. The head office of BIS is located in ___.
a) Hong Kong 
b) Switzerland
c)China 
d) Mexico
e) Australia

15. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.
a) Mumbai 
b) New Delhi
c) Bengaluru 
d) Chennai
e) Kolkata

16. Special Drawing Rights (SDRs) are international foreign exchange reserve assets issued by
a) World Bank 
b) WTO
c) ADB 
d) IMF
e) None of these

17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above

18. According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?
a) Bihar 
b) Uttar Pradesh
c) Manipur 
d) Jharkhand
e) Sikkim

19. Payment of a cheque may be countermanded by the ___
a) Payee 
b) Drawer
c) True owner 
d) Drawee
e) None of these

20. Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.
a) 31st December 2015
b) 1st January 2016
c) 31st March 2016
d) 1st April 2016
e) 1st June 2016

21. Identify the well known person related to Banking field in India from the following?
a) Mrs. Meira Kumar
b) Mrs. Kiran Shaw
c) Mr. Arun Jaitley
d) Dr. D Subbarao
e) All of the above

22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None of the above

23. Reserve Bank will issue ___bank notes with 3 additional features to aid the visually impaired in identification.
a) Rs. 500 and Rs 1,000
b) Rs. 100 and Rs. 500
c) Rs. 50 and Rs. 100
d) Rs. 10 and Rs. 100
e) None of these

24. Simply click a card launched by SBI special for ____.
a) Cash Transfer
b) Online Shopping
c) Pay Utility Bills
d) For Home Loans
e) None of these

25. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these

26. Hypothecation is:
a) Atransaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above

27. Mortgage is a:
a) Security on movable property for a loan
b) Security on immovable property for a loan
c) Concession on immovable property
d) Facility on immovable property
e) Security on loan sanctioned against fixed deposits

28. What is the minimum amount to be invested under Sukanya Samriddhi Scheme?
a) Rs. 500 
b) Rs. 1000
c) Rs. 1500 
d) No ceiling
e) Rs. 100

29. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs

30. The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.
a) Securitisation
b) Security 
c) Statutory
d) Share 
e) Saving

31. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above

32. Global Rating Agency Fitch has downgraded Viability Rating (VR) by one notch to 'bb' of which among the following banks?
a) Bank of Baroda
b) State Bank of India
c) Punjab National Bank
d) Canara Bank
e) IDBI Bank

33. The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above

34. As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.
a) one month 
b) three months
c) two months 
d) six months
e) None

35. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only

36. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above

37. 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 the above

38. A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:
a) Cross rate 
b) Merchant rate
c) Wash rate 
d) Composite rate
e) None of the above

ANSWERS:
1) c; 2) d; 3) c; 4) d; 5) c; 6) b; 7) a; 8) c; 9) d; 10) b;
11) a; 12) d; 13) e; 14) b; 15) a; 16) d; 17) c; 18) c; 19) b; 20) d;
21) d; 22) a; 23) a; 24) b; 25) d; 26) b; 27) b; 28) b; 29) b; 30) b;
31) b; 32) c; 33) b; 34) a; 35) c; 36) c; 37) a; 38) a.

BANKING AWARENESS PRACTICE QUESTIONS FOR ALL EXAMS

1. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above

2. 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 of the above

3. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate
in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above

4. Who notifies Foreign Trade Policy?
a) RBI
b) DGFT
c) Govt. of India
d) ECGC
e) None of the above

5. 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

6. Expand the term LIBOR as used in financial banking sectors?
a) Local Indian Bank Offered Rate
b) London-India Bureau of Regulations
c) Liberal International Bank Official Ratio
d) London Inter Bank Offered Rate
e) None of the above

7. Which one of the following rates is NOT decided by the RBI?
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Income Tax Rates
e) Only a & b

8. When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as:
a) Participation
b) Consortium
c) Syndication
d) Multiple Banking
e) All the above

9. The headquarters of International Monetary Fund is ___
a) Geneva
b) Paris
c) London
d) Manila
e) Washington

10. The first insurance company was started in India in 1818 at:
a) Kolkata
b) Chennai
c) Mumbai
d) New Delhi
e) Allahabad

11. Which one of the following is not a "Money Market Instrument"?
a) Treasury Bills
b) Commercial Paper
c) Equity Shares
d) Certificate of Deposit
e) All the above

12. The Banking Codes and Standards Board of India was registered on 18 February, 2006 under
which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above

13. Who is the chairman of Governing 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. Payment of cheques is governed by sections under_____:
a) Banking Regulation Act 1949
b) RBI Act 1934
c) Negotiable Instruments Act 1881
d) Prevention of Money Laundering Act 2002
e) None of the above

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

16. The Act governing forex activities in India is:
a) RBI act
b) FERA
c) FEMA
d) SEBI
e) Finance Ministry

17. Sri Arun Shrivastava has taken over charge on 15.05.2015 as new CMD of ____ bank.
a) Union Bank of India
b) United Bank of India
c) Syndicate Bank
d) Andhra Bank
e) Allahabad Bank

18. RBI advised Banks that all new cards issued - debit and credit, domestic and International shall be EMV (Europay MasterCard Visa) chip and pin based cards with effect from:
a) 1st September 2015
b) 1st October 2015
c) 1st November 2015
d) 1st August 2015
e) 15th August 2015

19. Benefits in core banking system are:
a) Reliable centralized data recovery
b) Data warehousing and data mining technologies
c) Integrated customer centric services
d) Core infrastructure can be used for future expansion
e) All the above

20. NRI Deposits are classified under:
a) Capital a/c
b) Current a/c
c) Special Foreign Deposit Account
d) Either b or c
e) None of the Above

21. Which of the following can be called as intermediary in the Financial System?
a) Insurance companies
b) Banking companies
c) Mutual funds
d) All the above
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 ceiling for repatriation of funds from NRE/FCNR accounts is:
a) Rs.2 lakhs
b) Rs.5 lakhs
c) Rs.10 lakhs
d) No ceiling
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 the above

25. Debentures are governed by____
a) Law of Contract
b) BR Act
c) Company Law
d) Banking Regulation Act
e) None of the above

26. The maturity period of CDs (Certificate of Deposit) issued by banks should not be less than ____ and not more than _____, from the date of issue.
a) 7 days, 6 months
b) 7 days, 1 year
c) 15 days, 6 months
d) 15 days, 1 year
e) 90 days, 180 days

27. The Main activity of the Financial Intelligence Unit India (FIU-IND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs

28. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above

29. Crossing a cheque is a direction to the:
a) Drawer
b) Payee
c) Paying Banker
d) Clearing House
e) Collecting banker

30. The minimum amount for which a CD (Certificate of Deposit) can be issued is:
a) Rs. 1 lakh
b) Rs. 2 lakh
c) Rs. 5 lakh
d) Rs. 10 lakh
e) Rs. 20 lakh

31. A rate of exchange established between any two currencies on the basis of the respective quotation
of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above

32. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only

33. Kishore Biyani-led Future Group agreed to merge its retail business stock deal worth Rs. 750
crore to create one of the biggest supermarket chains with Rs. 15,000 crore turnover with which of the following organizations?
a) V-Mart Retail
b) Shoppers Stop
c) Bharti Retail
d) Koutons Retail India
e) None of the above

ANSWERS
1) b 2) b 3) b 4) b 5) d 6) d 7) d 8) b 9) e 10) a
11) c 12) b 13) b 14) c 15) e 16) c 17) c 18) a 19) e 20) a
21) d 22) c 23) d 24) a 25) c 26) b 27) b 28) c 29) c 30) a
31) a 32) c 33) c

BANKING AWARENESS PRACTICE QUESTIONS

1. A draft issued by the bank has been lost by the payee. He sends a letter to the issuing bank to stop payment. Bank will:
a) Note caution and will advice the payee to contact purchaser of the draft
b) Not act on the request
c) Stop payment
d) Performs no action
e) None of the above

2. Mutual funds are required to be registered with:
a) AMFI
b) SEBI
c) IBA
d) RBI
e) NABARD

3. What is Yield Curve Risk?
a) It is a line of graph plotting the yield of all maturities of a particular instrument
b) Yield curve changes its slope and shape from time to time
c) Yield curve can be twisted to the desired direction through the intervention of RBI
d) All of the above
e) None of the above

4. The biggest international financial centre in the world:
a) Frankfurt
b) Geneva
c) London
d) New York
e) Paris

5. The expansion of BIFR, in the context of the Indian Industry is:
a) Board for Industrial and Financial Reconstruction
b) Bureau for Industrial and Financial Reconstruction
c) Board for Investment and Financial Reconstruction
d) Bureau for Investment and Financial Reconstruction
e) None of these

6. The largest financial conglomerate of India is:
a) HDFC Bank
b) ICICI Bank
c) IFCI
d) SBI
e) None of these

7. Under which of the following methods of depreciation, amount of depreciation varies every
year?
a) Written Down Value Method
b) Straight Line Method
c) Amount of depreciation does not vary on year to year basis
d) Either a or b
e) None of these

8. Usually, the validity period of an Income Tax Refund Order is:
a) 1 month
b) 2 months
c) 3 months
d) 6 months
e) 4 months

9. Which of the following is true about "White Card"?
a) It is related to companies producing milk products
b) It does not carry on its face, the brand of the issuer
c) It is meant to covert blank money into the economy
d) It is a card that provides white money
e) None of these

10. First bank in India to launch its interactive banking service through Dish TV:
a) HSBC
b) ICICI Bank
c) HDFC Bank
d) Axis Bank
e) None of these

11. First Indian Governor of the RBI:
a) C.D. Deshmukh
b) Sachindra Ray
c) S. Mukherjee
d) D.I.G. Patel
e) None of the above

12. CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) has been set up on
the recommendations of:
a) Narashimham Committee
b) Ghosh Committee
c) Chore Committee
d) Kapoor Committee
e) Krishna Committee

13. The primary relationship between the banker and the customer is that of:
a) Trustee and beneficiary
b) Debtor and Creditor
c) Principal and agent
d) Lesser and lessee
e) None of these

14. A debt becomes time-barred after:
a) One year
b) Two and a half year
c) Three years
d) Five years
e) Six years

15. In the matter of handling bills of exchange for collection, the relationship between customer and
the bank is:
a) Trustee and the beneficiary
b) Principal and agent
c) Bailor and bailee
d) All of the above
e) None of the above

16. Hypothecation is:
a) A transaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above

17. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these

18. J.S. Verma Committee Report relates to:
a) Strengthening of weak banks
b) Corporate Governance
c) Bank Mechanization
d) All of the above
e) None of the above

19. AUsance Bill when presented for acceptance has to be accepted/ dishonoured within:
a) 24 hours
b) 36 hours
c) 48 hours
d) 60 hours
e) 26 hours

20. Invoice is a:
a) Accounting document
b) Legal document
c) Commercial document
d) All of the above
e) None of the above

21. When does a person become insolvent?
a) When he left with no property of his own
b) When he declares an insolvent by the Court
c) When he terminates from a job he was holding
d) When he declares himself to be an insolvent
e) None of the above

22. When two parties make an arrangement to exchange future cash flows, it is called:
a) Options
 b) Arbitrage
c) Swap
d) Futures
e) None of the above

23. Which of the following banks enjoys the reputation of being at the top in market capitalization among all the private banks?
a) ICICI Bank
b) HDFC Bank
c) Axis Bank
d) Yes Bank
e) IDBI Bank

24. "Claused Bill of Landing" is one which indicates:
a) Remaining constant in project cost
b) Escalation in Project Cost
c) Decrease in Project Cost
d) All of the above
e) None of the above

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

BANKING AWARENESS PRACTICE QUESTIONS

1. Who among the following is the primary regulator of Banking business?
a) Reserve Bank of India
b) Central Government
c) State Government
d) Parliament
e) a and b both the above

2. The main business of banks is to accept deposits from the public. However, a bank can refuse to
permit opening an account on behalf of _______:
a) Undesirable persons
b) Artificial persons
c) Arrested persons
d) Convicted persons
e) All of the above

3. Banks are required to monitor transactions of suspicious nature for reporting to the authorities under anti- money laundering measures. The purpose of reporting is:
a) Combating finance of terrorism
b) To check hawala transactions
c) To check the inflow of crime money
d) To check inflow of the money earned out of sale of narcotics
e) All the above

4. Acceptance of deposits by non - banking financial companies is regulated by RBI under:
a) Non - banking financial companies acceptance of public deposits (Revenue Bank) directions 1998
b) Non - banking financial companies acceptance of government deposits (Revenue Bank) directions, 1998
c) Non - banking financial companies acceptance of public deposits (Revenue Bank) directions, 1998
d) Non- banking financial companies acceptance of deposits money lenders (Revenue
Bank) directions, 1998
e) None of the above

5. If a company, which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above

6. Companies whose main business is not financing or lending are permitted to accept deposits under section 45(s) of RBI Act only from:
a) Public
b) Relatives in the from of loans
c) Friends
d) All of the above
e) None

7. Every Banking company is required to use the word Bank in its name and no company other than a Banking company can use the words Bank, Banker or Banking as a part of its name as per:
a) Section 7 of Banking Regulation Act
b) Section 7 of RBI Act
c) Section 7 of SEBI Act
d) Section 7 of Nationalization Act
e) None of the above

8. In India, it is necessary to have license from the RBI for opening a new branch. This is a requirement under ____ Act
a) Section 22 of banking Regulation Act
b) Section 22 of RBI Act
c) Section 22 of NABARD
d) KYC Guidelines by RBI
e) a and b above

9. Section 6(A) of B.R. Act has given the list of ancillary services which can be rendered by a Bank under the Banking Regulation Act. in the event that a Bank wants to undertake any other services (other than the list):
a) the bank can seek authority from the RBI
b) Board of directors of that Bank can decide the business suitable to the bank
c) it can be decided by the Bank in the shareholders meeting
d) Bank can do so if that business is notified by the Central Government as the lawful business of a Banking company
e) None of the above

10. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase
securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these

11. Section 9 of the Banking Regulation Act prohibits the banking Companies from holding any
immovable property except for its own use for a period of not more property. The RBI may extend this period for a further period of ______:
a) 2 years
b) 4 years
c) 5 years
d) 6 years
e) None of the above

12. Which of the following stock exchange is derecognized by SEBI on 19.11.2014 on the allegations of serious irregularities in its functioning?
a) Bombay Stock Exchange
b) Delhi Stock Exchange
c) Calcutta Stock Exchange
d) Bangalore Stock Exchange
e) None of the above

13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) Medical Insurance

14. Liability- side of the balance-sheet comprises:
a) Capital and reserve
b) Long-term liabilities
c) Current liabilities
d) All of the above
e) None of the above

15. Minimum cash reserves fixed by law constitute ___
a) A percentage of aggregate deposits of the bank
b) A percentage of aggregate loans and advances of the bank
c) A percentage of capital & reserves of the bank
d) All of the above
e) None of these

16. Which of the following organizations/ agencies has sought an emergency fund of Rs.1000 crore
from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers?
a) Regional Rural & Cooperative Banks
b) RBI
c) Micro Finance Institutions
d) NABARD
e) None of the above

17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No
other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above

18. Mortgage is a:
a) Security on movable property for a loan
b) Security on immovable property for a loan
c) Concession on immovable property
d) Facility on immovable property
e) Security on loan sanctioned against fixed deposits

19. ___ assumed charge as the Minister of State for Micro, Small & Medium Enterprises (MSME) on 11th November 2014.
a) Gopal Singh
b) Veerabhadra Singh
c) Manoj Tiwari
d) Giriraj Singh
e) Raju Bhai Gandhi

20. Identify the well known person related to Banking field in India from the following?
a) Mrs. Meira Kumar
b) Mrs. Kiran Shaw
c) Mr. Arun Jaitley
d) Dr. D subbarao
e) All of the above

21. Currency notes deposited in the currency chest are the property of ____?
a) Respective bank
b) RBI
c) SBI
d) Government of India
e) Respective state Government

22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None of the above


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

General Awareness Practice Questions

1.    What is the full form of IFSC ?
A:    Indian Financial System code

2.    Commercial Paper can be issued for a maximum period of ?
A:    365 days

3.    The Mutual funds in India follow accounting standards laid by ?
A:    SEBI

4.    SBI launched minor a/c for children above 10 years named as ?
A:    PehliUdaan

5.    Who is the winner of Man BookerPrize 2014 ?
A:    Richard Flanagan

6.    Who is appointed as Secretary, Economic Affairs ?
A:    RajivMehrishi 

7.    There are how many digits in MICR ?
A:    9

8.    Who has been conferred with the Best Central Bank Governor award for 2014 by Euromoney magazine during October 2014?
A:    RaghuramRajan, RBI Governor

9.    PradhanMantri Jan DhanYojana (PMJDY) provides  accidental insurance benefit of?
A:    Rs. 1 lakh

10.    SainaNehwala is related to which game?
A:    Badminton

11.    Capital of Malaysia ?
A:      Kuala Lumpur

12.    International Labour Organization headquarters?
A:      Geneva, Switzerland

13.    Who is the author of the book "The Oath of the Vayuputras"?
A:      AmishTripathi

14.    Which airlines announced to purchase 250 airbus aeroplanes?
A:      Indigo

15.    Under PMJDY, how many bank accounts are opened?
A:     About 7 Crores 

BANKING AWARENESS PRACTICE QUESTIONS

1. Periodically Reserve Bank of India (RBI) reviews a few SLR norms. SLR stands for?
a) Statutory Liquidity Ratio
b) Statutory Liquidity Rate
c) Statutory Liquidity Return
d) Statutory Liquidity Repo
e) None of the above

2. In the recent months, Indian Rupee depreciated heavily against US Dollar. Rupee depreciation means?
a) Value of Rupee decreasing against a basket of currencies
b) Less number of Rupees per US Dollar
c) More number of Rupees per US Dollar
d) Less number of Dollars per Rupee
e) None of the above

3. In India, Commodities Market is regulated by?
a) Forward Market Commission
b) Forward Market Committee
c) Forward Market Corporation
d) Forward Market Council
e) None of the above

4. Food Security Bill is recently passed by Parliament. What does the Food Security Bill intend to achieve?
a) At least 3kg of food grains per person per month to be given to general category households, at prices not exceeding 50% of Minimum Support Price.
b) Up to 75% of the rural population and up to 50% of urban population are to be covered under Targeted Public Distribution System.
c) Children aged six months to 14 years would get take-home ration or hot cooked food.
d) The oldest adult woman in each house would be considered the head of that househole when issuing the ration card.
e) All of the above

5. FIPB stands for?
a) Foreign Investment and Production Board
b) Foreign Investment and Promotion Board
c) Foreign Investment and Promotion Bureau
d) Foreign Investment and Protection Board
e) None of the above

6. In India, Capital Markets are regulated by?
a) Securities and Exchange Board of India
b) Reserve Bank of India
c) State Bank of India
d) International Monetary Fund
e) None of the above

7. RAND is the currency of ?
a) China     

b) Japan    

c) North Korea     

d) South Africa     

e) None of the above

8. Recently RBI took several steps to control Rupee depreciation. Reason(s) for to Rupee depreciation?
a) Exports become costlier
b) Imports become costlier
c) Imports become cheaper
d) Both (a)&(c)   
e) None of the above

9. India's GDP growth is slowing down. GDP means?
a) Gross Domestic Product
b) Gross Domestic Poverty
c) Gross Demand Production
d) Gross Demand Product
e) None of the above

10.The  full  form  of  MIBOR  is
a.  Mumbai  Inter  Bank  Offer  Rate    

b. Melbourne  Inter  Bank  Offer  Rate
c. Madrid  Inter  Bank  Offer  Rate    

d. Moscow  Inter  Bank  Offer  Rate   

e. None  of  these

11.Which of the following is not a function of the RBI?
a. Bank's  Govt    

b. Custodian of foreign exchange         

c. Bank's Bank    

d. Banker to the public     

e. None of these

12. Air-Asia India is the new proposed Airline in India. It tied up with the following Industrial group for its launch in India?
a) TATAs                      

b) Reliance group     

c) Aditya Birla group   

d) Infosys  

e) None of the above

13. Kisan  Credit  Card  scheme  was launched  in  the  year?
a.  2000    

b.  1998     

c.  1996    

d.  1992    

e.  None  of  these

14. IRDA headquarters located in which City?
a) Mumbai     

b) Bangalore 

c) Hyderabad     

d) Chennai     

e) None of the above

15. "Janet Allen" is Chief of which of the following institutions?
a. World Bank     

b. African Development Bank      

c.  Asian Development Bank    
d. Federal Development Bank    

e. Federal Reserve Bank

16. Which private sector bank sets Guin -ness record in blood collection ?
a. ICICI          

b. HDFC     

c. AXIS Bank      

d. YES Bank   

e. HSBC

17. Who wrote "Planned Economy for India" in 1934?
a. Dr. VKRV Rao     

b. M. Visveswaraya     

c. Prof. Dantawala   

d. Neela Kanta Rah    

e. None

18. Recently which bank has started "Tab Banking" service ?
a. SBI     

b. PNB    

c. ICICI     

d. HDFC    

e. BOB

19. As per findings of the recent Raghuram Rajan Committee report which State is the most developed?
a) Kerala   

b) Goa  

c) Gujarat     

d) Tamilnadu       

e) None of the above

20. As per the insurance bill, 2013, Foreign Investors can hold up to?
a) 51% of the capital in an Indian insurance company
b) 39% of the capital in an Indian insurance company
c) 49% of the capital in an Indian insurance company
d) 29% of the capital in an Indian insurance company     

e) None of the above

21. Statutory Liquidity Ratio (SLR) refers to the amount that the commercial banks require to maintain with RBI. What are the permitted SLR investments?
a) Only Gold      

b) Gold or Govt approved Securities       

c) Only Govt approved Securities
d) Only Cash     

e) None of the above

22. Direct Taxes Code (DTC) is intended to be introduced in the monsoon session of Parliament. DTC seeks to replace?
a) Indian Contract Act      

b) Indirect Tax Act     

c) Income-Tax Act    
d) Banking Regulation Act      

e) None of the above

23. In July 2013, RBI notified that Non-CTS Cheques are valid till the end of year 2013. CTS means?
a) Cheque Truncation System
b) Cheque Transaction System
c) Cheque Transmission Service
d) Cheque Transport Service
e) None of the above

24. In July 2013, SEBI Act was amended to curb Ponzi schemes. Ponzi Scheme means?
a) Name of a Mutual Fund Scheme to earn higher returns
b) Collective investment Schemes floated by fly by night operators
c) Name of a Bank Deposit Product
d) Name of a Health Insurance scheme
e) None of the above

25. The minimum rate of Interest charged by a Bank from Customers on the loans is?
a) Base Rate   

b) Bank Rate     

c) Prime Rate    

d) Prime Lending Rate      

e) None of the above

26. Which of the following is NOT true with regard to FCNR Accounts?
a) NRIs can open the Account
b) Can be opened in 'Permitted Currency' only
c) Minimum Term is 1 year
d) Maximum Term 5 years
e) None of the above

27. REPO rate means?
a) Rate at which the RBI will borrow from the banks
b) Rate at which banks will borrow from other banks
c) Rate at which the RBI lends to banks
d) Rate at which banks lend to customers
e) None of the above

28. Fiscal Deficit Refers to?
a) The difference between the government's total expenditure and its total receipts(including borrowing)
b) The difference between the government's total expenditure and its total receipts(excluding borrowing)
c) The difference between the government's Tax collections and Salary payments
d) The difference between the government's Tax collections and government's Borrowings        

e) None of the above

29. "DAX" is the stock market in?
a) Germany     

b) USA     

c) France  

d) Hongkong   

e) None of the above

30. Which of the Public Sector bank tag line "India's International Bank" ?
a. SBI               

b. PNB        

c. ICICI      

d. HDFC    

e. BOB

31. Which bank has launched "travel card" for students joining abroad?
a. SBI             

b. PNB        

c. ICICI      

d. HSBC        

e. ICICI

32. Who is the Chairman of the committee set up to scrutinize applications for new Bank licenses?
a) Usha Thorat   

b) Bimal Jalan     

c) C B Bhave     

d) S Damodaran     

e) None of the above

33. Who is the World Bank President?
a) Christine Legrade    

b) Jim Yong Kim     

c) Raghuram Rajan    

d) Monteksingh Ahluwalia     

e) None of the above

34. Ben Bernanke is the Chairman of Federal Reserve. What is Federal Reserve?
a) Central Bank of UK     

b) Financial wing of the World Bank      

c) Central Bank of USA
d) European Union Central Bank    

e) None of the above

35. NEFT means?
a) National Electronic Funds Transfer
b) Negotiated Efficient Fund Transfer system
c) National Efficient Fund Transfer solution
d) Non Effective Fund Transfer system
e)Negotiated Electronic Foreign Transfer system.

36. Distribution of insurance products and insurance policies by banks as corporate agents is known as?
a) General insurance     

b) Non life insurance     

c) Bancassurance   

d) Insurance Banking     

e) Deposit Insurance

37. In respect of partnership business, LLP stands for:
a) Local Labour Promotion
b) Low Labour Projects
c) Limited Loan Partnership
d) Longer Liability Partnership
e) Limited Liability Partnership

38. What is a stale cheque?
a) A cheque issued without drawer's signature.
b) A cheque with only signature of the drawer.
c) A cheque which has completed 3 months from the date of its issue.
d) Any one of the above.         

e) None

39. Interest on savings bank account is now calculated by banks on?
a) Minimum balance during the month
b) Minimum balance from 7th to last day of the month
c) Minimum balance from 10th to last day of the month
d) Maximum balance during the month
e) Daily product basis

40. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?
a) RBI     

 b) NABARD    

c) LIC     

d) Govt. of India       

e) IBA

ANSWERS:
1) A  2) C  3) A  4) E  5) B  6) A  7) D  8) B  9) A  10) A  

11) D  12) A  13) B  14) C  15) E  16) B  17) B  18) A  19) B  20) C  

21) B  22) C  23) A  24) B  25) A  26) E  27) C  28) B  29) A  30) E  

31) E  32) B  33) B  34) C  35) A  36) C  37) E  38) C  39) E  40) D