BANKING AWARENESS PRACTICE QUESTIONS

1. What are the measures taken by RBI to reduce liquidity in the banking system?
a) RBI increases the CRR.
b) RBI increases the SLR
c) RBI increases the repo rate.
d) RBI increases the bank rate.
e) All the above

2. LAF stands for .......
a) Loan Adjustment Fund
b) Liquidity Adjustment Facility
c) Long Awaited Funds
d) Loan Against Funds
e) None of these

3. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means ........
a) Sale or purchase of govt. securities
b) Issuance of different types of bonds
c) Auction of gold
d) To make available the direct finance to borrowers
e) None of these

4. Truncation of cheques means .........
a) The cheques in the paper form will be retained by the collecting banker and he will submit only photograph image of cheque to the clearing house.
b) A trunk call will be booked by banks to the payee bank and requests them to clear the cheque.
c) Cheques will be scanned and the electronic image, instead of physical cheque, will be transmitted in the clearing cycle.
d) Debiting the drawers account through internet banking.
e) None of these

5. Which of the following institution plays a major role in promotion of cross border trade and investment?
a) SIDBI
b) IFCI
c) NHB
d) EXIM Bank
e) None of these

6. Forged cheque means ........
a) The cheque which is post dated cheque
b) The cheque in which the signature of the drawer of the cheque is not genuine.
c) A stale cheque
d) All of the above
e) None of these

7. Amalgamation of Regional Rural Banks is recommended by?
a) K.C. Chakravarthy Committee
b) Usha Thorat Committee
c) Vyas Committee
d) C.V. Anand Bose Committee
e) None of these

8. Which of the following loan products is also known as 'teaser loans'?
a) Working capital loan
b) Education loans
c) Jewel loans
d) Home loans
e) Consumer durable products loans

9. Lending to customers with less than ideal credit status is known as?
a) sub-prime lending
b) Banks don't lend
c) Ideal credit lending
d) Risky lending
e) None of these

10. Expand NPA in the context of loan products?
a) Non-performing assets
b) New product ascendant
c) Net performing assets
d) Net profit on assets
e) None of these

11. Loan period or term of loan in case of repo is ........
a) Greaterthan 365 days
b) Lessthan 30 days
c) Greaterthan 30 days
d) No limit in case of term in repo
e) None of these

12. Identify lending institution from the following .......
a) Exports and Imports Bank (EXIM Bank)
b) Small Industries Development Bank of India (SIDBI)
c) Housing Development Finance Corporation (HDFC)
d) All the above
e) None of these

13. Advancing term loan or cash credit or working capital requirements is known as ......
a) Retail lending
b) Corporate financing
c) Multilateral lending
d) Company financing
e) None of these

14. EXIM Bank's Line of credit preclude ...... for Indian exporters.
a) Credit risk
b) Legal Risk
c) Systemic Risk and settlement Risk
d) Market Risk
e) None of these

15. Money with the public and money with banks in form demand deposits and money with RBI in other deposits is known as?
a) Narrow banking money or M2
b) Narrow Money or M1
c) Broad money or M3
d) High powered money or M0
e) None

16. The concept of classifying banks into weak banks and permitting them to invest only in
government securities is known as?
a) Narrow Banking concept
b) Tarapore and Narasimham concept
c) Banking investment concept
d) Four-tire banking concept
e) None

17. Automatically converting amount from savings bank account into fixed deposit, beyond a fixed limit, set as per the customer's request is known as .......
a) Re-investment deposit
b) Demand Term deposit
c) Flexi deposit
d) Recurring deposit
e) None of these

18. What are loans and advances provided by banks to meet working capital requirements
of a business entity?
a) Overdraft
b) Cash credit
c) Purchase and discounting of bills
d) Loans
e) All the above

19. As per RBI guidelines what percentage does Indian banks must lend to Priority Sector?
a) 40%
b) 32%
c) More than 50%
d) 18%
e) As per the individual bank's capacity

20. Exchange Earner's Foreign Currency (EEFC) account .....
a) It is a current account so no interest is paid to the deposits in the account
b) Account deposits are not in Indian Rupee
c) This account can be opened by all categories of foreign exchange earners but resident in India
d) The amount have to be convert into Indian rupee before a month
e) All the above

21. Which of the following credit rating institutions is promoted by RBI along with SBI, HDFC Bank and ICICI Bank?
a) ICRA
b) CIBIL
c) CRISIL
d) CRO
e) None of these

22. Identify the odd one from the following. While lending banks will follow certain cardinal principle, those are ........
a) Safety and Security
b) Liquidity and Profitability
c) Purpose
d) Diversification of risk
e) None

23. What are methods used to estimate the working capital needs?
a) Operating cycle
b) Turn over projection
c) Net working capital projection
d) All the above
e) None of these

24. What is the mode of charges laid on vehicle loan?
a) Pledge
b) Hypothecation
c) Assignment
d) Mortgage
e) All the above

25. Generally banks face a credit risk when ....
a) Customer defaulting to repay the loan
b) Banks lend money to RBI
c) Banks lend money to government
d) Credit given to the customer
e) All the above

26. Identify the odd out of following with respect to priority sector ......
a) Agriculture
b) Education
c) Housing
d) Consumer durable credit
e) Export Credit

27. What is the percent of advances does Khadi and Village Industries Sector (KVI) must be lent by banks in the SME and MSME category of Priority Sector advancing?
a) More than 50% SME and MSME category
b) 60% of total Priority Sector advances
c) 60% of SME and MSME category
d) Less than 40% SME and MSME category
e) None of these

28. As per present RBI guidelines what is minimum percentage does commercial banks need to lend Government?
a) 22%
b) 4%
c) 9%
d) 8%
e) No need to lend

29. A reduction in SLR rate leads to .......
a) Gold rate decrease
b) Support the credit growth in India.
c) Government will be funded more as the rate is reduced.
d) Reduction in credit growth in India
e) None of these

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

BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS

1. The tenth Five-Year Plan period is :
A. 2000-05
B. 2001-06
C. 2002-07
D. 2004-2009 
E. 2005-2010

2. Indian corporate can now invest in joint ventures and subsidiaries abroad to the extent of .............% of their net worth.
A. 200
B. 150
C. 100
D.75 
E. None 

3. Minimum period of a Certificate of Deposit is :
A.15 days 
B.30 days
C.10 days
D.7 days
E. None 

4. To accelerate growth of services exports from India and to create a unique brand, a new scheme called ............... has been introduced in the New Foreign Trade Policy.
A. India Service
B. India Calling
C. Incredible India
D. Served from India
E. None 

5. The New Foreign Trade Policy envisages Indias share in merchandise trade to ......... within the period 2004-09.
A. double
B. treble
C. rise by 50%
D.rise by 80%
E. None of these.

6. Hybrid capital instruments (debt / equity) form part of ........ capital.
A.Tier II 
B.Tier I
C.Paid up
D. Preference share
E. None of these.

7. A customer has been defined in : 
A. Banking Regulation Act 
B.Negotiable Instruments Act 
C. Anti-Money Laundering Act 
D. KYC guidelines
E. None of these.

8. A Medium Enterprise is defined as one in which investment in plant and machinery is over the SSI limit, but less than Rs........
A. 5 cr.
B. 10 cr.
C. 25 cr.
D. 50 cr. 
E. None 

9. The BSE Sensex consists of a basket of ...... stocks.
A. 50
B. 100
C. 30
D. 66 
E. None 

10. The Government of India has recently announced a scheme for providing short term loans to farmers at concessional rate of ......... % p.a. up to an amount of Rs. .........lakh.
A. 7, 1
B. 7, 3
C. 5, 1
D. 5, 3
E. None of these.

11. 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 

12. 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 

13. A centralized 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 

14. 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 

15. Which of the following is necessary while opening deposit accounts in banks? 
A. Will 
B. Registration
C. Nomination 
D. Indemnity 
E. Guarantee 

16. 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 

17. 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 

18. 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 

19. 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 

20. 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 

21. The provision to be made on Standard assets for the current year is :
A. 0.25%
B. 0.40%
C. 0.40% for all loans except loans to Priority Sector 
D. 0.40% on all loans, except loans to direct Agriculture & SME segments, for which the provision is 0.25%
E. None of these

22. Clause 49 of the Listing Agreement of SEBI refers to:
A. announcing of quarterly results of listed companies
B. restriction of FDI in public sector banks
C. corporate governance and financial penalties including  delisting for companies who do not appoint the required  number of independent directors on their board
D. None of these
E. All of the Above

23. Which bank in India ranks number one in India in terms of market capitalization?
A. SBI
B. ICICI Bank 
C. UTI Bank 
D. IDBI Bank
E. None of these 

24. Which is the first mutual fund in the country to offer redemption of its units through ATMs of HDFC Bank and VISA ?
A. Reliance MF
B. UTI MF
C. SBI MF 
D. Pro ICICI MF
E. None of these

25. The stake of SBI in its joint venture with TCS, C-Edge, is :
A. 51%
B. 40%
C. 60%
D. 49% 
E. None

26. A Banks aggregate capital market exposure has been capped at ...... % of its net worth.
A. 5
B. 10
C. 40
D. 25
E.None

27. Financial Intelligence Unit is set up by ............. for tightening anti-money laundering measures.
A. RBI 
B. Central Vigilance Commission 
C. Income Tax Department 
D. Finance Ministry, GOI 
E. None of these

28. Credit limits to dealers in agricultural machinery up to Rs. .......... lacs are classified as priority sector advances.
A. 25
B. 30
C. 40
D. 20 
E.None

29. The minimum maturity period for Commercial Paper (CP) is ................. days.
A. 14
B. 30
C. 45
D. 7
E.None 

30. The first SEZ promoted by a corporate is :
A. Reliance SEZ, Haryana 
B. SEEPZ, Mumbai
C. Mahindra SEZ, Pune 
D. None of the above
E. All of the Above

31. 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 

32. Basel norms which are important regulatory stipulations are meant for which sector? 
A. Insurance
B. Banking
C. Micro finance 
D. Pension funds
E. None 

33. Systematic investment Plans relates to: 
A. Mutual Funds
B. Life Insurance Companies 
C. Commercial Banks
D. Post office savings schemes 
E. None 

34. Euro money is the official currency of ........ ?
A. NATO 
B. United Nations
C. European Union 
D. Germany and England 
E. None of these 

35. 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 

36. Whose signature appears on Indian Rs. 100 note? 
A. Finance Minister
B. RBI Governor 
C. Finance Secretary 
D. Chairman, Planning Commission 
E. None 

37. 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 

38. 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 

39. Banking 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 of these

40. 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 

ANSWERS:
1-C, 2-A, 3-D, 4-D, 5-A, 6-B, 7-D, 8-B, 9-C, 10-B
11-C, 12-B, 13-B, 14-E, 15-C, 16-D, 17-B, 18-C, 19-B, 20-D
21-D, 22-C, 23-B, 24-A, 25-D, 26-C, 27-D, 28-B, 29-D, 30-C
31-D, 32-B, 33-A, 34-C, 35-D, 36-B, 37-C, 38-B, 39-A, 40-C

BANKING AWARENESS PRACTICE QUESTIONS FOR ALL BANK EXAMS

1. What are the characteristics that need to be present in an instrument to be said as negotiable instrument?
a) Written instrument with signature
b) Instrument made or drawn for consideration
c) Transfer/ negotiation by endorsement/ delivery
d) Bonafide and valuable
e) All the above

2. BCBS stands for ......
a) Banks Commission for Basel Supervision
b) Basel Committee on Banking Supervision
c) Banking Companies and Business System
d) Banks Committee on Business Supervision
e) None of the above

3. 'Depository services' means ......
a) An agency for safe keeping of securities
b) A bank accepting deposits from customers and service the customers
c) Bank accepting deposits from other bank as a depository services
d) Both b and c
e) None of these

4. Identify the following rates decided by bank .........
a) Bank rate
b) Repo rate
c) Base rate
d) CAR
e) None

5. Which of the following is also known as 'Smart Money' ?
a) Credit cards
b) Electronic cheques
c) Plastic money
d) All the above
e) None of these

6. Statutory Liquid Ratio (SLR), is a mechanism used by commercial banks to ......
a) Provide cash deposits to RBI
b) Liquidate the government fixed properties
c) Avoid government monetary policies with the help of RBI statutory planning
d) Provide credit to government
e) None of these

7. What do you mean by term 'Gilt-edged security'?
a) Government security that is a claim on the government and is a secure financial instrument which guarantees both capital and interest.
b) A financial instrument which is a coupon for corporate security, and payable on demand by corporate to the banks along with the demanded interest.
c) Is a security which is widely used in of day to day banking and commercial financial transactions.
d) It is a security which is easily transferable. And banks can widely accept from public for encashment, providing loans, as securities etc.
e) None of these

8. Identify the bank reasons for returning the cheque unpaid ......
a) No agreement
b) Payment stopped
c) Refer to drawer
d) Exceeds agreement
e) All the above

9. Coins with the value of 50 paise and below are called as ......
a) Small coins
b) Paise value coins
c) Mint coins
d) RBI coins
e) None of these

10. If a cheque is crossed then the status of the cheque is ......
a) It is an invalid document
b) Cheque cannot be enchased even though it is deposited in the payee account
c) The cheque is ineligible to get cash across the counter
d) The cheque is considered as cancelled cheque
e) None of these

11. Banks dishonouring the cheque is called as ......
a) Bank cancelling the cheque
b) Stopping cheque without payment
c) Nullifying of the cheque
d) Truncating the cheque
e) None of these

12. Which of the following is not an instructional credit agency ?
a) Money lenders
b) Commercial banks
c) NBFCs
d) Regional rural banks
e) Co-operative societies

13. Whose signature is found on an one-rupee currency note of india?
a) RBI Governor
b) Finance Secretary of India
c) Deputy Governor of RBI
d) Prime Minister of India
e) Finance Minister of India

14. Who among the following cannot open a savings bank account?
a) A business entity
b) Two persons jointly
c) Both a and b
d) An individual
e) Trusts

15. Interest rate policy belongs to .......
a) Fiscal policy
b) Monetary policy
c) Bank policy
d) Banking Business policy
e) None of these

16. Mr.X an indivical can open following account (s) with a bank ......
a) Savings account
b) Current account
c) Fixed deposit account
d) All the above
e) Only a and c

17. What are the first six numbers indicate in MICR cheque?
a) Cheque number
b) City code
c) Bank code
d) Branch code
e) All the above

18. Which of the following is excluded from NI Act?
a) Promissory note
b) Bill of exchange
c) Cheque
d) Currency note
e) None of these

19. Banks will be happy to lend money to RBI if the following rate is increased ......
a) Repo rate
b) Base rate
c) Reverse repo rate
d) Bank rate
e) None of these

20. Savings account can be opened in following institutions ......
a) Commercial banks
b) Co-operative banks
c) Public sector banks
d) Postal departments
e) All the above

21. What is the maximum period of holdings in a saving account?
a) There is no maximum period of holdings
b) 10 year
c) 6 months to 1 year (depending on bank)
d) More than 10 years
e) None of these

22. A person who draws the cheque is known as .......
a) Drawee
b) Drawer
c) Payee
d) Barer
e) None of these

23. Resolution and settlement of grievance of public against banks is done by ......
a) Reserve Bank
b) Indian Banking association
c) Customer himself
d) Banking ombudsman
e) None of these

24. An introduction while opening an account is ......
a) Optional
b) Compulsory
c) Not necessary under NI Act
d) Both b and c
e) None of these

25. According to RBI a savings bank account is treated as inoperative or dormant if there are no transactions in the account over a period of .......
a) 2 years
b) 18 months
c) 1 year
d) 5 years
e) None of these

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

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;

http://banking-awareness.blogspot.com/2014/08/banking-awareness-practice-mcqs-for-all.html

BANKING AWARENESS PRACTICE QUESTIONS FOR IBPS CLERKS EXAM

1. World Trade Organization's (WTO) 9th Ministerial Conference is to be held in December, 2013. Where is it to be held?
a) Bali, Indonesia
b) Cancun, Mexico
c) Geneva, Switzerland
d) Hongkong
e) None of the above

2. In August, 2013, Govt of India set up a 7 member panel to revisit Tax laws and to recommend measures for a stable tax administration. Who heads the panel?
a) Naina Lal Kidwai
b) Bimal Jalan
c) Parthasarathi Shome
d) Dr Y V Reddy
e) None of the above

3. Which of the following is NOT a Direct Tax?
a) Income Tax
b) Corporation Tax
c) Property Tax
d) Gift Tax
e) Service Tax

4. Open Market Operations are carried out by RBI to
a) Lend money to State Governments
b) Shore up the Rupee value
c) Adjust Market Liquidity and thereby controlling money supply
d) To bring down Gold prices
e) None of the above.

5. 'Laissez-faire' in economic parlance means
a)Totally controlled market
b) Completely free market
c) Capitalistic market
d) Monopolistic market
e) None of the above

6. What is a Debt Fund?
a) Mutual Fund that invests in Fixed Income Securities like Bonds & Treasury bills
b) Mutual Fund that invests only in Shares and Equities
c) Mutual Fund that invests only in Infrastructure Bonds
d) Mutual Fund that invests only in long term Deposits
e) None of the above

7. Find the 'odd man out' of the following.
a) Certificate of Deposit
b) Term Deposit
c) Savings Bank Deposit
d) Commercial Paper
e) Capital Gains Deposit

8. What is NOT true with regard to TDS (Tax Deducted at Source) on Interest on Bank
Deposits for the Financial Year 2013-14?
a) TDS is done when interest on all the FDs of a Customer crosses Rs. 10000/- per year
b) TDS is not done for interest on Tax Saving FDs
c) TDS is done at the rate of 10% on the total Interest
d) TDS is not done on interest from Savings Bank Accounts
e) None of the above

9. Current Foreign Trade Policy (Exim Policy) covers the period
a) 2013-18
b) 2012-17
c) 2010-15
d) 2011-16
e) 2009-14

10. Ben Bernanke is the Chairman of USA's Central Bank, 'Federal Reserve'. Who will succeed him?
a) Janet Yellen
b) Christine Lagarde
c) Oliver Kahn
d) John Kerry
e) None of the above

11. While Indian Railways is the largest Public Sector Employer in India, who is the
largest Private Sector Employer in India?
a) Reliance Industries
b) Infosys
c) Wipro
d) TCS
e) None of the above

12. Which State in India has the highest Per Capita Income?
a) Goa
b) Punjab
c) Karnataka
d) Tamilnadu
e) Haryana

13. As per the latest Companies Act, what is the minimum number of member's required
to form a Public Limited Company?
a) 1
b) 50
c) 7
d) 2
e) 10

14. Regional Rural Banks(RRBs) are owned by
a) Only RBI and Sponsor Bank
b) Only Govt of India and Sponsor Bank
c) Only Sponsor Bank, Govt of India and State Government concerned
d) Only Sponsor Bank and State Government concerned
e) None of the above

15. Davos in Switzerland is famous for Annual meeting of World Business leaders,Politicians and thought leaders. Which organization conducts this meeting?
a) World Economic Forum - A Swiss Non-profit Foundation
b) World Bank
c) International Monetary Fund
d) World Trade Organization
e) None of the above

16. What is 'Deficit Financing'?
a) Lending of money by Banks to companies with losses
b) Practice in which a government spends more money than it receives as revenue
c) Lending of money by RBI to State Governments
d) Lending of money by World Bank to Poor countries
e) None of the above

17. Who is the author of 'Das Kapital' which is a critical analysis of Political Economy?
a) Maxim Gorky
b) Karl Marx
c) Leo Tolstoy
d) Amartya Sen
e) None of the above

18. The 'Bharatiya Mahila Bank' the first nationalised bank for women will have a Seed Capital of Rupees
a) 500 Crores
b) 5000 Crores
c) 100 Crores
d) 1000 Crores
e) None of the above

19. JNNURM (Jawaharlal Nehru National Urban Renewal Mission) is a Govt. of India
scheme for?
a) Urban Employment
b) Urban Finance
c) Urban Education
d) Urban Development & Modernization
e) 'a', 'b' & 'c' of the above

20. Which Country is the largest producer of Wheat in the world?
a) India
b) USA
c) Peoples Republic of China
d) Russia
e) None of the above

21. The first NBFC (Non Banking Financial Company) to be converted into a Bank in
India is
a) Kotak Mahendra Finance Ltd. in 2003
b) Reliance Finance Ltd. in 2005
c) L&T Finance Ltd. in 2008
d) Shriram Finance Ltd. in 2006
e) None of the above

22. What is 'Operation Flood'?
a) Flood Control Program of Govt. of India
b) River Linking Project of Govt. of India
c) Dairy Development Project of NDDB(National Dairy Development Board)
d) Irrigation Development Plan of Govt. of India
e) None of the above

23. What is the Target set for Farm Credit in Union Budget for 2013-14?
a) Rs 7,00,000 Crore
b) Rs 5,00,000 Crore
c) Rs 5,75,000 Crore
d) Rs 3,00,000 Crore
e) None of the above

24. What is 'Financial Inclusion'?
a) Delivery of Banking Services at affordable cost
b) Providing Banking Services to the vast sections of disadvantaged and low income groups
c) Availability of Banking and payment services to entire population without discrimination
d) All the 3 above
e) None of the above

25. How much amount is earmarked approximately for capital infusion in to Public Sector Banks in FY 2013-14?
a) Rs. 14,000 Crores
b) Rs. 10,000 Crores
c) Rs. 20,000 Crores
d) Rs. 18,000 Crores
e) None of the above

26. The threshold for cash transactions to be monitored by Banks as per RBI guidelines is
a) Rs. 50 Lakh
b) Rs. 10 Lakh
c) Rs. 5 Lackh
d) Rs.50,000
e)Rs. 25,000

27. On 10th October, 2013 a group member organisation of the World Bank has launched Bonds worth US $ 1 billion linked to Rupee for boosting investments in India. Name this organization.
a) International Monetary Fund (IMF)
b) International Finance Corporation (IFC)
c) Asian Development Bank (ADB)
d) United Nations Development Programme (UNDP)
e) None of the above

28. National Bank for Agriculture and Rural Development (NABARD) is established in
July, 1982 as per recommendations of Committee headed by
a) Narasimhan
b) Saraf
c) Rangarajan
d) Sivaraman
e) Bimal Jalan

29. What is the name of the trade Association of IT & BPO companies in India?
a) NASSCOM
b) FICCI
c) CII
d) AIMA
e) ASSOCHAM

30. Name the Bank which has recently announced 'eKYC' facility to open Savings and
Loan accounts based on just Aadhar and Finger prints scan for New Customers.
a) HDFC Bank
b) SBI
c) Axis Bank
d) IDBI Bank
e) Punjab National Bank

31. RBI guidelines require Banks to roll out more secured 'Chip+ PIN' Debit/Credit cards
to their customers. What is the deadline set by RBI for this?
a) November 30th, 2013
b) December 31st, 2013
c) March 31st, 2014
d) September 30th, 2013
e) None of the above

32. Which Sector contributed maximum to GDP of India as per Economic Survey 2012-13?
a) Industrial
b) Services
c) Agriculture
d) Infrastructure
e) None

33. What is 'Employee Attrition'?
a) Employees filing suits against their Employers
b) Employees filing suits against each other
c) Employees striking work
d) Employer loosing Employees through resignation/retirement/retrenchment
e) None of the above

34. Rs. 2058 Crore Jet-Etihad deal is the largest Foreign investment in Indian Aviation Sector so far. Where is the Etihad headquarters is located?
a) Dubai
b) Muscat, Oman
c) Kuwait
d) Singapore
e) Abu Dhabi

35. Which company is the World's largest Steel manufacturer?
a) Nippon Steel, Japan
b) Arcelor Mittal, Luxemborg
c) POSCO, South Korea
d) Tata Steel, India
e) None of the above


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

http://banking-awareness.blogspot.com/2014/08/banking-awareness-practice-questions.html

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

BANKING AWARENESS PRACTICE QUESTIONS FOR IBPS CLERKS WXAM

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 household 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. Chakravarthy Rangarajan is?
a) Governor of Reserve Bank of India
b) Director of Securities and Exchange Board of India
c) Chairman of Prime Minister Economic Advisory Council
d) Chairman of State Bank of India
e) None of the above

11. International Monetary Fund (IMF) works to foster global monetary cooperation, promote high employment and sustainable economic growth. Who is the current managing director of IMF?
a) Kaushik Basu
b) Dr. Y V Reddy
c) Jim Yong Kim
d) Christine Lagarde
e) None of the above

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. Raghuram Rajan became the 23rd RBI Governor on 5th September 2013. Whom did he
succeed?
a) Dr Y V Reddy
b) D Subba Rao
c) Bimal Jalan
d) Dr Rangarajan
e) None

14. IRDA headquarters located in which City?
a) Mumbai
b) Bangalore
c) Hyderabad
d) Chennai
e) None of the above

15. Arundathi Battacharya was recently in the news. She is?
a) Managing Director of SBI
b) Chairman of Punjab National Bank
c) CEO of ICICI Bank
d) CEO of Axis Bank
e) None of the above

16. India's CAD was 4.8% of GDP in 2012-13. CAD means?
a) Current Amount Deficit
b) Current Account Deficit
c) Current Asst Debt
d) Common Account Deficit
e) None of the above

17. Which of the following is NOT matched?
a) C B Bhave - SEBI
b) Rangarajan - Planning Commission
c) Raghuram Rajan - RBI
d) T S Vijayan - IRDA
e) Yogesh Agarwal - PFRDA

18. Who is the Chairman of the Planning Commission?
a) P. Chidambaram
b) Monteksingh Ahluwalia
c) Raghuram Rajan
d) Manmohan Singh
e) None of the above

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. After retirement, Ratan Tata was made the Chairman Emeritus of Tata Sons. Who
succeeded Ratan Tata as Chairman of Tata Sons?
a) Cyrus Mistry
b) Niira Radia
c) Mukesh Ambani
d) Nandan Nilekani
e) None of the above

31. Yellow Metal refers to?
a) Copper
b) Silver
c) Platinum
d) Gold
e) None of the above

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) c;
11) d; 12) a; 13) b; 14) c; 15) a; 16)b; 17) b; 18) d; 19) b; 20) c;
21) b; 22) c; 23) a; 24)b; 25) a; 26) e; 27) c; 28) b; 29) a; 30) a;
31) d; 32)b; 33) b; 34) c 35) a; 36) c; 37) e; 38) c; 39) e; 40) d

BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS

1. KYC norms are liberalised in case of following account:
a) Current Account 
b) Savings Account 
c) Term Deposit Account
d) No Frills Account 
e) None of the above

2. The National Social Security Fund (NSSF) helps which of the following groups of society?
a) Bank employees 
b) Central government employees
c) Workers in the unorganized sector 
d) Workers in the textile industry
e) Women employees

3. Regional Rural Banks have been set up with the basic objective of:
a) Providing credit to semi-urban and urban population
b) Providing deposits facilities to farmers
c) Providing credit and deposit facilities to rural areas
d) Providing credit, deposit and other banking facilities to people in rural areas
e) None of the above

4. Which of the following deposits do not attract TDS?
a) Fixed Deposits 
b) Deposits Reinvestment 
c) Flexi Deposits
d) Call Deposits 
e) Recurring Deposits

5. Which of the following tools is used by the RBI to control credit and monetary situations of the markets?
a) RTGS 
b) ECS 
c) NEFT 
d) CRR 
e) Balance of trade

6. The Cash Reserve Ratio is to be maintained by Commercial Banks in the form of?
a) Cash in hand at branches 
b) Balance with other banks
c) Balance in a special account with RBI 
d) Funds in the currency chest
e) All of the above

7. Regional Rural Banks are classified as?
a) subsidiaries of NABARD 
b) subsidiaries of the sponsor banks
c) scheduled commercial banks 
d) All of the above 
e) None of the above

8. Foreign exchange reserves of India are kept in the custody of which of the following?
a) International Bank for Reconstruction and Development
b) Reserve Bank of India 
c) State Bank of India
d) International Monetary Fund 
e) Government Treasury

9. A Hire-purchase contract is a -
a) Contract of bailment 
b) Contract of sale
c) Contract of bailment followed by contract of sale
d) Contract of lease followed by contract of bailment
e) None of these

10. Which of the following Act defines the age of a minor?
a) Section 25 of N.I. Act 
b) Section 33 of Contract Act
c) Section 54 of Partnership Act 
d) Section 3 of Indian Majority Act
e) None of these

11. The objective(s) of SLR is/are:
a) To ensure that Banks remain solvent
b) To increase volumes in Government securities.
c) To regulate expansion of Credit
d) All of the above 
e) None of these

12. What is the amount of capital that RBI is tentatively proposing to provide to the Public Sector Banks this year, to meet its capital adequacy requirement as per Basel III norms ?
a) Rs.11,200 cr 
b) Rs.20,000 cr 
c) Rs.12,200 cr
d) Rs.13,200 cr 
e) None of the above

13. Decrease of CRR & SLR has the effect of:
a) Decreasing Credit creation 
b) Increasing Credit creation
c) Increasing purchasing power of money 
d) All of the above
e) None of the above

14. Which of the following Acts has specially been enacted to help banks deal with bad loans?
a) Negotiable Instrument Act 
b) Banking Regulation Act
c) SARFAESI Act 
d) Companies Act 
e) Offshore Banking Act

15. _____ provides Clearing House facilities for netting of payments and security delivery?
a) Primary dealers 
b) Banks 
c) Stock exchanges
d) All of the above 
e) None of these

16. Which of the following cities are tentatively selected by RBI to launch Rs 10/- plastic notes?
a) Shimla b) Kochi 
c) Mysore
d) Jaipur and Bhubaneswar 
e) All of the above places

17. Depositories hold shares in ______form:
a) Physical b) Dematerialized 
c) Either a or b
d) Both a and b 
e) None of these

18. Current Account can be opened by?
a) Any Company registered under ROC Act 1956
b) Partnership Firms 
c) Sole Proprietor
d) Any Individual or joint individual 
e) All of these

19. Zero coupon bonds are those ________:
a) Which do not make a periodical coupon payment
b) These bonds are bought for less than their face value (at a discount).
c) Are mostly issued in auctions by Treasury.
d) All of the above
e) None of these

20. Name the first State Cooperative Bank in India which started its own 'RuPay' ATM-cum-Debit Card?
a) Andhra Pradesh State Cooperative Bank in Hyderabad
b) Himachal State Cooperative Bank in Shimla
c) The Andaman and Nicobar State Co-operative Bank Ltd.
d) The Bihar State Co-operative Bank Ltd
e) Jharkhand State Co-operative Bank

21. Finance Ministry has asked all Public Sector Banks to improve their ________ portfolio to 40%?
a) Fixed Deposits 
b) Recurring Deposits 
c) Flexi Deposits
d) CASA Deposits 
e) None of the above

22. The Credit Guarantee Fund (CGTMSE) Scheme covers?
a) Only term loans 
b) Only working capital 
c) Both a and b
d) All Type of Fund based & Non Fund based credit facility
e) None of these

23. RBI directed Banks not to levy penalty on individual borrowers for pre-payment of floating rate term loans. This term loans include?
a) Housing Loan 
b) Vehicle Loan 
c) Personal Loan
d) Only a &b 
e) All a, b and c

24. The Difference between Gross Domestic Product and Net Domestic Product is?
a) Government Revenue 
b) Net Indirect Tax (Indirect Tax Subsidy)
c) Consumption of fixed Capital 
d) Net Capital Formation
e) None of these

25. Recently, the RBI has recognized Micro Finance Institution Network (MFIN), as the Self Regulatory organization for NBFC-MFIs. The decision was taken by RBI based on the recommendations made by which committee?
a) Y H Malegam committee 
b) Parthasarthi Shome committee
c) Chakrabharthy committee 
d) Khan committee 
e) None of these

26. Where is the headquarter of Association of South East Asian Nations (ASEAN) located?
a) Jakarta b) Singapore 
c) Kathmandu 
d) Bangkok 
e) None of these

27. World Bank was established in the year?
a) 1943 
b) 1944 
c) 1945 
d) 1946 
e) None of these

28. Through which of the following the funds to the projects aided by the World Bank and the International Monetary Fund (IMF) are distributed?
a) Regional Branches of RBI 
b) NABARD
c) Integrated Rural Development Programme
d) Agriculture Corporation Refinance and Development 
e) Ministry of Finance

29. QFI stands for:
a) Qualified Financial Investor 
b) Qualified Foreign Investor
c) Qualitative Financial Investment 
d) All of the above 
e) None of the above

30. Which of the following is NOT a part of India's Money Market?
a) Bill Market 
b) Call Money Market c) Banks
d) Mutual Funds 
e) Indian Gold Council

31. Exim Bank is planning to set up a Project Development Company (PDC) in Africa along with:
a) State Bank of India 
b) IL&FS 
c) African Development Bank
d) Only a & b 
e) a, b & c

32. Department of Economic Affairs is part of which of the following Ministries?
a) Ministry of Home Affairs
b) Ministry of Planning
c) Ministry of Finance
d) Ministry of Heavy Industries & Public Enterprises
e) Ministry of Rural Development

33. Which of the following is a Fixed Asset?
a) Goodwill 
b) Land & Building c) Cash
d) All of the above 
e) None of the above

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

35. Recently, which among the following banks has organized "The Banking and Economics Conclave 2014" a national level banking conclave for the first time?
a) State Bank of India 
b) Canara Bank 
c) State Bank of Mysore
d) Vijaya Bank 
e) None of these

36. Takehiko Nakao is the president of which of the following organization?
a) OPEC 
b) African Union 
c) IMF 
d) WTO 
e) ADB

37. Net worth of business means:
a) Equity capital 
b) Total asset c) Fixed asset
d) Total asset - total liability 
e) None of the above

38. Insurance cover for bank deposits in our country is provided by?
a) SBI 
b) Government of India 
c) DICGC
d) GIC 
e) None of these

39. Who among the following can invest in capital markets in India through Portfolio Investment?
1. Non Resident Indians (NRIs) 
2. Foreign Institutional Investments (FIIs)
3. Persons of Indian Origins (PIO)
Choose the correct answer from the option given below?
a) Only 1 & 2 
b) Only 2 & 3 
c) Only 1 & 3
d) 1, 2 & 3 
e) None of the above

40. Which of the following is NOT a Scheduled Commercial Bank?
a) HDFC Bank 
b) Axis Bank 
c) IDBI Bank
d) NABARD 
e) SBI

ANSWERS:
1) d 2) c 3) d 4) e 5) d 6) c 7) c 8) b 9) c 10) d 
11) d 12) b 13) b 14) c 15) c 16) e 17. b 18) e 19) d 20) b 
21) d 22) d 23) e 24) d 25) a 26) a 27) b 28) d 29) b 30) e 
31) e 32) c 33) b 34) c 35) a 36) e 37) d 38) c 39) d 40) d