BANKING AWARENESS PRACTICE MCQs

1.    The World Trade Organization (WTO) deals with the global rules of trade between nations. Who is the Director General of WTO?
     a) Roberto Azevedo
     b) Christine Legarde
     c) Raghuram Rajan
     d) Oliver Ralph Kahn
     e) None of the above
 
 2.    RBI on October, 7th 2013, has reduced Marginal Standing Facility(MSF) rate from 9.5% to 9% to improve liquidity in the system. What is MSF?
     a)    MSF rate is the rate at which banks lodge funds overnight with RBI buying approved government securities.
     b)    MSF rate is the rate at which banks borrow funds overnight from other banks against approved government securities.
     c)    MSF rate is the rate at which banks borrow funds overnight from RBI against approved government securities.
     d)    MSF rate is the minimum rate at which banks lend to the borrowers.
     e) None of the above
 
 3.    Between 2007-08 to 2012-13,the value of Card spending rose to Rs.1.97 Lakh Crores. A raise in Cards spending indicates?
     a)    Transformation to 'Cashless Economy'
     b) Low inflation
     c) Raising incomes
     d) Falling prices
     e) None of the above
 
 4.    What is NOT true with regard to 'Carbon Credit'?
     a)    It is a tradable certificate or permit.
     b)    It represents the right of an Industry to emit certain quantity of Carbon Dioxide.
     c)    Carbon Credits mechanism was formalized in Kyoto Protocol.
     d)    Carbon Credits are currently traded on 5 exchanges across the globe.
     e) None of the above.
 
 5.    Arundhati Bhattacharya is in news recently. She is going to be?
     a)    1st woman Deputy Governor of RBI
     b)    1st woman Chair Person of SBI
     c)    1st woman Deputy Chairman of Planning Commission
     d)    1st woman Finance Secretary to Govt. of India
     e) None of the above
 
 6.    National Spot Exchange (NSEL) is the news for defaulting payments to investors. Who is the founder promoter of FT?
     a) Jignesh Shah
     b) Harshad Mehta
     c) Ketan Parekh    
     d) A K Telgi
     e) None of the above
 
 7.    Find the 'odd man out' of the following?
     a) Walmart      
     b) Tesco
     c) Carrefour    
     d) Big Bazar
     e) Ikea
 
 8.    One of the Primary functions of IMF is to provide short term capital assistance to member countries through SDR (Special Drawing Rights). What is NOT true about SDR?
     a) Currency code of SDR is XDR
     b)    SDR is the Unit of Account of IMF
     c)    Asian Development Bank (ADB) also uses SDR as its Currency
     d)    SDR can be exchanged only for US Dollar, British Pound, Euro & Japanese Yen
     e) None of the above
 
 9.    Main functions of Money?
     a) Medium of Exchange
     b) Unit of Account
     c) Store of Value
     d) Only 'a' and 'b' of the above
     e) 'a', 'b' & 'c' of the above
 
 10.    M/s XYZ company has got an order to supply Machinery to M/s ABC Co of Nigeria. Who has to get a Letter of Credit issued from a Bank?
     a)    M/s ABC since they are the importers
     b)    M/s XYZ since they are the exporters
     c)    Both since they are the parties to the agreement
     d)    RBI since they regulate the Foreign Trade in India
     e) None of the above
 
 11.    What is 'Packing Credit'?
     a)    Finance extended to Packing materials industry
     b)    Finance extended to an Importer to pack the goods imported
     c)    Finance extended to Warehouses for keeping the goods packages
     d)    Finance extended to an Exporter to meet the costs of buying and/ or making products to be exported
     e) None of the above
 
 12.    What is NOT true with regard to Currency Chests in India?
     a)    They are managed by different banks on behalf of RBI
     b)    Deposits in Currency Chests are taken into account for calculation of CRR(Cash Reserve Ratio)
     c)    Standard Chartered Bank a Foreign Bank also maintains Currency Chest
     d)    Coins are also stored in Currency Chests
     e) None of the above
 
 13.    Recently Parliament has pass-ed Companies Act 2013. What is NOT true with regard to some of the features of the Act?
     a)    An Individual can set up "One person Private Ltd Company"
     b)    An independent Director can hold 3 consecutive terms of 3 years
     c)    Listed Companies must have at least 1/3rd independent Directors
     d)    Prescribed Companies must have at least 1 woman Director on the Board
     e)    A Private Ltd Company can have a maximum of 200 members
 
 14.    What is 'Net Interest Margin' of a Bank?
     a)    Margin of Interest earned on Trading in Govt Securities
     b)    Difference between the Base Interest Rate and the Average Lending Rate
     c)    Difference between the interest income and the amount of interest paid out
     d)    Difference between Interest on Term Loans and Interest on Cash Credits
     e) None of the above
 
 15.    What is the World's largest functioning Oil Refinery?
     a)    Reliance Refinery in Jamnagar, Gujarat
     b)    IOC Refinery in Digboi, Assam
     c)    HPCL Mumbai Refinery
     d)    Paraguana Refinery, Venezuela
     e)    Exxon Mobil Refinery, Singapore
 
 16.    IIFCL (India Infrastructure Finance Co. Ltd) is wholly-owned Govt. of India Company. Who is selected to take over as the Chairman and Managing Director?
     a) C B Bhave    
     b) S B Nayar
     c) T S Vijayan
     d) Yogesh Agarwal
     e) None of the above
 
 17.    Till 30th June, 1955 State Bank of India(SBI) was known as?
     a) State Bank of British India
     b) Imperial Bank of India
     c) India Central Bank
     d) Central Bank of British India
     e) None of the above
 
 18. Where is the Asian Development Bank(ADB) located?
     a) Mumbai, India
     b) Hiroshima, Japan
     c) Shanghai, China
     d) Manila, Philippines
     e) Jakarta, Indonesia
 
 19.    Structured Financial Messa-ging System (SFMS) is a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications in India. Which of the following have interface with SFMS?
     a)    RTGS(Real Time Gross Settlement)
     b)    Negotiated Dealing System (NDS)
     c)    Security Settlement System (SSS)
     d) 'a' and 'c' of the above
     e) 'a', 'b' & 'c' of the above
 
 20.    Which Country is the largest producer of Tea in the world?
     a) India    
     b) Brazil
     c) Peoples Republic of China
     d) Srilanka    
     e) None of the above
 
 21.    Who is the CEO & MD of TCS(Tata Consultancy Servi-ces)?
     a) Cyrus Mistry    
     b) S Ramdorai
     c) N Chandrasekharan
     d) Ratan Tata        
     e) None of the above
 
 22.    Qualitative Credit Contro is one of the methods used by RBI to control credit. Which of the following is NOT a Qualitative Credit Control tool?
     a) Moral Suasion
     b) Marginal Requirement
     c) Rationing of Credit
     d) Bank Rate
     e) 'a' & 'd' of the above
 
 23.    Who is the Chairperson of 14th Finance Commission?
     a) Dr Yaga Venugopal Reddy
     b) Dr Vijay L Kelkar
     c) Dr C Rangarajan
     d) Dr Duvvuri Subbarao    
     e) None of the above
 
 24.    The 12th Five Year Plan (2012-17) is approved by Union Cabinet on 4th October, 2012. The aims of the plan are?
     a) 8% average growth rate
     b) Reduce Poverty by 10% during the Plan
     c) Faster, Sustainable and More inclusive Growth
     d) All the 3 above
     e) None of the above
 
 25.    Which State is the largest producer of Cotton in India in the year 2012-13?
     a) Gujarat
     b) Maharashtra
     c) Andhra Pradesh
     d) Karnataka    
     e) Madhyapradesh
 
 26.    Who sets up the Bench Mark Interest Rate for Germany?
     a) German Central Bank
     b) Deutsche Bundes Bank
     c) European Central Bank(ECB)
     d) Deutsche Bank
     e) None of the above
 
 27.    What is India's Apex Tax body?
     a) CBDT    
     b) GAAR
     c) IT Department
     d) RBI    
    e) None of the above
 
 28.    FICCI is an Association of Business Organizations in India.  Who is the President of FICCI?
     a) Shikha Sharma
     b) Usha Thorat
     c) Naina Lal Kidwai
     d) Indra Nooyi
     e) None of the above
 
 29.    Banks in India are governed by BR Act 1949.  What does  'BR' stands for?
     a) Banks Registration
     b) Banking Re-organization
     c) Banking Regulation
     d) Banking Rights    
     e) None of the above
 
 30.    In India, Scheduled Commercial Banks are those Banks included?
     a)    In the 2nd Schedule of RBI Act 1934
     b)    In the 2nd Schedule of BR Act 1949
     c)    In the 2nd Schedule of NI Act 1881
     d)    In the 2nd Schedule of Companies Act 1956
     e) None of the above
 
 
 Answers:
 1.a         2.c      3.a       4.e      5.b      6.a     7.d       8.e      9.e    10.a
 11.d    12.e    13.b    14. c    15.a   16.b    17.b    18.d    19.e    20.c
 21.c    22.c    23.a    24.d    25.a     26.c    27.a    28.c    29.c    30.a

BANKING AWARENESS MODEL PRACTICE MCQs

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. Due 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

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

BANKING AWARENESS PRACTICE MCQs FOR BANK EXAMS

1.    The first Indian bank to open a branch outside India in London in 1946?
     a) SBI    
     b) PNB    
     c) BOB    
     d) Canara Bank
     e) BOI
 
 2.    Coins are minted at ?
     a) Mumbai    
     b) Hyderabad    
      c) Noida    
      d) Kolkatta    
      e) All of these
 
 3.    Which of the following is not a function of commercial bank?
      a) Providing project finance
      b) Selling mutual funds
      c)    Deciding policy rates like CRR, Repo rates/SLR etc.
      d)    Settlement of payments on behalf of the customers
      e)    Providing services such as locker facilities, remittances etc..
 
 4.    The New Capital Adequacy Frame work prescribed for the banks is commonly known as?
     a) KYC norms    
     b) Credit Policy
     c) Basel accord
     d) Fiscal Policy
     e) None of these
 
 5.     Expand the term FRBM?
 a)    Financial Responsibility and Business management
 b)    Fiscal Responsibility and Business management
 c)    Financial Responsibility and Budget Management
 d)    Fiscal Responsibility and     Budget Management
 e)    Formal Responsibility and Business Management
 
 6. What is an Indian Depository Receipt?
 a)    A deposit account with a Public Sector Bank
 b)    A depository account with any of depositories
 c)    An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
 d)    An instrument in the form of deposit receipt issued by Indian depositories
e) None of these
 
 7.    Land Development Banks form a part of the?
     a) Commercial Banks
     b) Industrial Development Bank of India
     c) Food Corporation of India
     d) Co-operative Credit Structure
     e) None of these
 
 8.    Which of the following cannot be called as a value Added Service offered by bank?
 a)    Special Accounts for poor sections of society
 b)    Accident Insurance Cover
 c)    Instant credit of outstations cheques     
 d)    free cheque books    
 e) All of these
 
 9.    The minimum number of women required for formation of women groups under Development of women and children in Rural Areas Programme is?
a) 20        
b) 15        
c) 10        
d) 05        
e) None of these
 
 10.    What is the full form of 'FINO', a term we see frequently in financial newspapers?
 a)    Financial Investment Network and Operations
 b)    Farmer's Investment in National Organization
 c)    Farmers Inclusion News and Operations
 d)    Financial Inclusion Network and Operations
 e) None of these
 
 11.    With an aim to provide better services to the debit card holders, the Reserve Bank of India (RBI) has directed all commercial and public sector banks to introduce new Automated Teller Machines (ATM) that can deliver lower denomination notes such as?
     a) Rs 10    
     b) 20    
     c) 50.
     d) None of the above
     e) All the above
 
 12.    Which of the following banks is limited to the needs of agriculture and rural finance?
     a) RBI    
     b) SBI    
     c) IFC    
     d) NABARD    
     e) Axis Bank
 
 13.    Open-market operations of Reserve Bank Of India refer to?
     a) Trading in securities        
      b) Auctioning        
     c) Transaction in gold
     d) All of these            
     e) None of these
 
 14.    Which of the following has introduced a new tool named Data Warehousing and Business Intelligence System for speedy analysis of data and identifica-tion of violations?
     a) IRDA     
      b) SBI    
     c) RBI    
     d) TRAI    
     e) None of these
 
 15.    The Reserve Bank hiked the limit for foreign investment in Asset Reconstruction Companies (ARCs) from the earlier cap of 49 percent to?
     a) 74 %    
      b) 47 %
     c) 57 %    
     d) 72 %
     e) None of the above
 
 16. Which of the following is NOT the part of the scheduled banking structure in india?
     a) Money Lenders
     b) Public  Sector Banks    
     c) Private Sector Banks
     d) Regional Rural Banks    
     e) State Co-operative Banks
 
 17.    Who is the chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions sector?
     a) Y.H. Malegam        
     b) Dr K.C.Chakraborty        
     c) C.Rangarajan
     d) M.Damodaran     
     e) Smt Usha  Thorat
 
 18.    An instrument of qualitative credit control in india is?
     a) Open market operations    
     b) Credit rationing    
     c) Change in reverse ratio
     d) Bank rate policy
     e) None of these
 
 19.    Which of the following is the full form of the term SLR as used in the banking sector?
     a) Social Lending Ratio
     b) Statutory Liquidity Ratio    
     c) Scheduled Liquidity Rate
     d) Separate Lending  Rate    
     e) None of these

 20.    World Bank Headquarters is in?
a) India    
b) USA        
c) Switzerland    
d) Japan        
e) UK
 
 Answers
 1)  e;    2)  e;  3)  c;4)  c; 5)  d;  6)  c;    7)  d;    8)  d;  9)  c; 10) a;    
 11) e; 12) d; 13) a; 14) b; 15) a;     16) a; 17) a; 18) b; 19) b: 20) b.  

RBI allowed the Non-Resident Investors to buy Shares under FDI Scheme

The Reserve Bank of India on 6 September 2013 allowed the Non-Resident Investors including NRIs to purchase shares of Indian entities Under FDI Scheme. The investment can be made as per the mentioned conditions. RBI has allowed the NRIs to make investment under the FDI scheme only on the listed entities, on recognized stock exchanges.

The Reserve Bank of India has decided to include the non-residents, including the NRIs to acquire the shares of domestic companies listed under FDI scheme, on the stock exchanges through a registered broker, if the investor has already acquired and continues to hold control in accordance with SEBI, Substantial Takeover Code. 

RBI has also cleared that the inward remittance using the normal banking channels can be used for payment of the transfer of shares to non-residents consequent to purchase. The debit to the NRE pr FCNR account of a person with authorized dealer or bank can also be considered for making the payment of the transferred shares. Escrow Accounts (non-interest bearing) maintained in India can also be used to debit the payment.  The prices of the transfer of the shares for the non-resident shareholders would be made in accordance to the pricing guidelines mentioned under, FEMA. 

Till now, the FIIs (Foreign Institutional Investor), QFIs (Qualified Foreign Investors) and NRIs were eligible to invest and acquire the shares on the recognized stock exchanges of India in compliance with the FEMA (Foreign Exchange Management Act) regulations. But the NRIs were not allowed to acquire shares on exchange (bourses) under the FDI Scheme.

RBI Revised Gold Import Norms to Contain CAD

To contain the current account deficit, RBI announced some measures to curb the demand for gold in the month of September 2013 considering one of the major reason for widening the current account deficit.

Supplies of the metal to special economic zones (SEZs) will not be counted as exports to qualify for further purchases from overseas. As per the existing norms, 20 percent of every lot of imported gold has to be made exclusively available for the purpose of exports.

Gold made available by a nominated agency to units in the SEZ and export oriented units, Premier and Star trading houses shall not qualify as supply of gold to the exporters.RBI announced that entities and units in SEZs and EoUs, Premier and Star trading houses are permitted to import gold exclusively for the purpose of exports.

The government aims to bring it down to USD 70 billion in 2013-14 fiscal from 88 billion US Dollar in 2012-13. Gold imports in April-July 2013 rose 87 percent to 383 tonnes.